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FOUNDED    BY    A.     i/.     WILSON,     FEBRUARY,     1892. 


Vol.  XLI.— Nn  1,044,]        r'"»fi«S:2.V']      SATURDAY .  JAN.  5,   1918. 


NEW  SERIES 


[Price  6d. 


CONTENTS. 


Passing  Events : — Revenue  —  New  Form  of  War  Bond  — 
National  War  Bond  Sales  —  Russian  Position  —  Anglo- 
French  Society's  Message  —  Three  Mexican  Companies 
Resume  Payment  —  Peek  Bros,  and  Winch  —  Molson's 
Bank  —  London  Scottish  American  Trust  —  Trust  and 
Loan  of  Canada  —  Blaenavon  —  Mount  Elliott  —  Rand 
Mining  Companies'  Dividends  —  Australian  Copper 
Producers'   Proprietary  (pp.   3-6). 

Leading  Articles: — Nine  Months'  Revenue  —  We  Must  Not 
F"orsake  Russia  —  By  -  the  -  Way  War  Notes  —  The 
Bankers'  Clearing  House  Returns  —  The  Food  Muddle 
and  the  Government  (pp.  6-11). 

Money  and  Credit  Notes  : — Reduction  in  Money  Rates  —  Big 
Bank  Return  Changes  —  Foreign  Exchange  Movements  — 
Union  of  South  Africa  Loan  —  Purchase  of  Argentina's 
Surplus  Wheat  —  Discount  Houses  Dividends  —  London, 
Provincial  and  South- Western  Amalgamation  —  Silver 
(pp.  12-14), 


Revenue  Returns  (p.  7). 
The  Week's  Stock  Markets  (pp.  1 1 
Books  Received  (p.   15). 


■15). 


NATIONAL  PROVINCIAL  BANK 
OF     ENGLAND,     LIMITED. 

ESTABLISHED  IN   1833. 

SUBSCRIBED    CAPITAL        -        £1S.B00,000. 

CAPITAL—Paid,  £3,000,000  ;   Uncalled,    £2,300,000; 

Reserve  Liability,  £10,600,000. 

RESERVE  FUND  (Invested  in    English   Government  Securities), 

£1  .aoo.ooo. 

DIRECTORS. 

Col.  CLAUDE  V.  E.LAURIE, 

C.B.,  D.S.O. 
The   Rt.  Hon.  The  EARL   OF 

LICHFIELD. 

F.  C.  LE  MARCHANT  Esq. 

G.  F.  MALCOLMSON,  Esq. 
■^ELWYN  R.  PRYOR.  Esq. 
RQ3ERT  WIGRAM,  Esq. 

Joint  General  Managers. 
D.  J.  H.  CUNNICK,  Esq.,  F.  ELEY.  Esq.,  and  A.  G.  HOPEWELL,  Esq. 

HEAD     OFFICE:     15,     BISHOPSGATE,  E.G.  2- 

French    Auxiliary — 

LLOYDS  BANK  (France)  and   NATIONAL  PROVINCIAL  BANK  (France).   1  TD. 


C.    F.    CAMPBELL,  Esq. 
MAURICEO.  FITZGERALD, Esq. 
CHARLES  R.  GILLIAT,  Esq. 
W.  H.  N.  GOSCHEN,  Esq. 
The  Rt.  Hon.  LORD  INCHCAPE, 

G.C.M.G.,  K.C.--.I..  K.C.I.E. 
FRANCIS  A.  JOHNSTON,  Esq. 


THE  COMMERCIAL  BANK  OF  LONDON, 

LIMITED. 

Chairmun-The  Right  Hon.  SIR  CHARLES  HOBHOUSE,   BART., 

P.C,  M.P. 
CURRENT  ACCOUNTS  opened,  and  every  desrription  of  Banking 

bu  ine^s  transacted.     Bills  discounted,  and  advances  made  to 

custome.  s  on  approve  1  secur  ty. 
SPECIAL    FACILITIES     GRANTED    TO    COMMERCIAL    AND 

INDUSTRIAL  UNDERTAKINGS. 
THE  PURCHASE  AND  SALE  OF  SECURITIES  undertaken,  also 

the  receipt  of  diviriends 

COUPONS  AND  DRAWN  BONDS  negotiated. 
DEPOSITS  receive  i  at  call,  or  for  lixed  periods,  at  rates  which  may 

bs  ascertained  on  application. 
6,  Austin  Friars,  London,  E.C.  2.  ARTHUR  H.  KING,  Mmianer. 


Insurance  News: — New  Life  Business  in  1917  —  Steady  Market 
for  Insurance  Shares  (p.  17). 

American  Business  Notes  : — Government  Control  of  Railways  — 
Congestion  of  Traffic  in  New  York  (p.  18). 


Tea,     Oil,    and    Rubber  :— Rubber    Market 
Oil  Co.   (p.  19). 


Mexican    Eagle 


What  Balance  Sheets  Tell :— R.  and  J.  Dick —  Arniston  Coal 
Co,  —  Commercial    Bank  of   London  —  Halley  s  Industrial 

Motc*rs  (p.  17  and  p.  19). 

Company  Meetings : — Samuel  Allsopp  and  Sons  —  London  and 
South-Western  Bank  —  British  Columbia  Electric  Railway 
—  London  and  Provincial  Bank  (pp.  21-3). 

London  Produce  Markets  (pp.  15-16). 

Traffic  Returns  (pp.  lC-17). 

Dividends  Announced  (p.  18). 

Oilfields  Production  (p.  18). 

Answers  to  Coi respondents  (p.   18). 

The  Week  in  Mines  (p.   19). 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the   Imperial 
Japanese  Government^  7899. 

-      TAIPEH,    FORMOSA. 


HEAD   OFFICE 


BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


THE  YOKOHAMA   SPECIE   BANK.   LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1 880. 

Subscribed  Capital         Yen  48,000,1)00 

Capital  Paid  Up Yen  36,000,000 

Reserve  Fund  ..        ..  ..    Yen  22.100,000 

Head  Office:   YOKOHAMA. 
Branches  and  Agencies  at 
Antung-Hsien.  Harbin.  Nagasaki.  Shanghai. 

Bombay.  Honolulu.  Newchang.  Singapore. 

Calcutta.  Hong  Kong.  New  York.  Sydney. 

Changchun  Kobe.  Osaka.  Tiehling. 

Dairen  (Dalny).  Liaoyang.  Peking.  Tienisin. 

Fengtien  (Mukden).       Los  Angeles.  Ryojun  (Port  Arthur).  Tokyo. 

Hankow.  Lyons.  San  Francisco.  Tsinanfu. 

Seattle.  Tsingiau. 

The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Ti  ansfers  and  Letters  of  Credit  on  above  places  and  elsewhere 
and  tranracts  General  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtaine  i  on  application. 
London  Office:  7,  BISHOPSGATE.  E.C. 2. 

K,  TATSUMl.  Manager. 


HONGKONG   AND    SHANGHAI    BANKING    CORPORATION. 

Capital  (all  paid  up) $18,000,000 

Sterling  Reserxe,  tield  in  London  at  exchange  of  2s.  per  $  =  £1,SOO,000  $18,000,000 

Sllirer  Reserve $18,900,000    $33,800,000 

Reserve  Liability  of  Proprietors $18,000,000 

HEAD    OFFICE— HONGKONG     Chief  Manager-N.   J.    STABB. 
BRANCHES    AND    AGENCIES:  —  Amoy,    Bangkok,  Batavia,  Bombay,  Calcutta,  Canton,  Colombo,   Fjochow,  Hankow,  Harbin,   Hon|;kevr    (Shanghai), 
Ipih,  lohore,    Kobe  (Hlogo),    Kuala   Lumpur,    London    Lyons,    Malacca,   Manila,   Nagasaki,   New   York,    Peking,    Penang,  Rangoon,  Saigon,  San   Franciscw, 
Shanghai,  Singapore,  Sourabaya,  Tientam,  Tsinglao,  Yloilo,  Yokohama. 

LONDON  COMMITTEE  ■ 
HENRY  KESWICK,  Esq.,  M.P.  |  WM.  GAIR  RATHBONE,  Esq.  |  ].  R.  M.  SMITH,  Esq.  —  A.  M.  TOWNSEND,  Esq. 

SIR  CHARLES    ADDIS,  lu       „„     „  ,  „„j„„  JOHN  MacLENNAN,  Sub-Manager 

9,  GuccoHVRCH  Strut,  LOMOSM,  E.C.  3.  H.  D.  C.  JONBS,  J- Manager   in  i,onaon.  W.  M.  BLACKIE,  Acconntant. 


tCbe  Jnvcstors*  IRevlcw. 


January  5,  1918. 


BANKS. 


CHARTERED  BANK  OF  INDIA, 
AUSTRALIA,  AND  CHINA, 

38,  Bishopsgate,    London,  E.G.  2. 

Incorporated  bv  Royal  Charter. 


Capital,  £1,200,000.     Reserve  Fand,  £1,900,000. 


Court  of  Dlractorm. 


WILLIAM       HENRY       NEVILLE 

GOSCHEN,  Esq. 
The   Right    Hon.   LORD  GEORGE 

HAMILTON,  G.C.S.I. 
WILLIAM  FOOT  MITCHELL, 

Esq. 
LEWIS  ALEXANDER  WALLACE, 


SIR  MONTAGU  CORNISH 

TURNER,  Chairman. 
SIR    HENRY    S.    CUNNINGHAM, 

K.C.I.E. 
THOMAS  CUTHUERTSON,  Esq. 
SIR  ALFRED  DENT,  K.C.M.G. 
Man»g*M:T.  H.  WHITEHEAD,  T.  FRASERandW.  E.  PRESTON.  [Esq. 
Bub-Manager:  J.  S.  BRUCE. 

Bankers  ; 

THE    BANK    OH    HNQLANO. 

THE    LONDON    CITY    AND    MIDLAND    BANK,    Limited. 

THE    LONDON  COUNTY  &  WESTMINSTER    B-^NK.    Limited. 

THE    N*TION  >L    PROVINCIAL    B>NK   OR  KNQUND.    Limited. 

THE    NATIONAL    BANK    OP  SCOTLAND,    Limited. 

The  Corporation  buy  and   receive   for  colleclion   Bills  of  Exchange,    grant 
Drafts  and  transact  general  banking  business  connected  with  the  East. 

DEPOSITS  OP  MONEY  are  received  for  fixed  periods  on  terms  which 

may  be    ascertained  on  apDiicatlon.       Interesc  payable    half-yearly, 

30th  June  and  31st  December. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  CapitaJ  £4,000  000 

Paid-up  Capital  1 ,800,000 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario.  Mendoza,  Concordia,  Bahia 
Blanca,  Cordoba,  Tucuman,  Farank,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires,  Boca  (Buenos  Aires),  Calle  Santa  F«  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires)  URUGUAY.— .\iontevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agenc^),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro.  Sao  Paulo,  Santos,  Per- 
nambuco,  Para,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  Hal^vy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.     Bills  negotiated, 

advanced  upon  or  sent  for  collection.- 7,  Princes  Street,  E.C.  2. 


FARROW'S  BANK 

Incorporated  under  the  Joint  Slock  Companies  Acts.  LIMITED 

AnthoriMd    Capital.   £1,000,000.  Shares  Issued,  700,000. 

Shareholders,  4,0(l0. 

Chairman     -       -       .       -  Mr.  Thomas  Farrow. 


EVERY   DESCRIPTION   OF   JOINT 
STOCK  BANKING  TRANSACTED. 

CURRENT    ACCOUNTS    opened     and    interest    paid    where 

approv.-d  Credit  Balances  are  maintained. 
DEPOSIT    ACCOUNTS.    Interest  paid  according  to  notice  of 

withdrawal. 

Write   or  call  for  Special  BooKlet  to 

HEAD    OFFICE: 

1,  CHEAPSIDE,  LONDON,  E.C. 2. 

73  Branches  throughout  the  United  Kingdom.  •  u  Af 


BANKS. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  1880. 

Authorised  and  Issued  Capital,  £6,000,000. 

Paid-up  Capital,  £2,000,000;  Reserve  Fund,  £i,g8o,ooo;  together   £3,980,000 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves £7,980,000 

HEAD  OFFICE   -        -        -        71 ,  CORNHILL,  LONDON,    E.n.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Austraiiau 
Slates  and  Domini^n  of  New  Zealand, 

TELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  pui chased  or  sent  for  Collection. 

Dt£PO>rrs  are  received  for  fixed  periods  on  terms  which  may  tse  ascertained 
on  application. 


UNION      BANK     OF     CANADA. 

Incorporated  1865.  Head  Office:  WINNIPEG. 

PAID-UP  CAPITAL $S.ooo,ooo 

REST   AND    UNDIVIDED    PROFITS $3,600,000 

TOTAL   SSSBTS    EXCEHD         tioo, 000.000 

The  Bank  has  over  300  Branches  in  Canada,  and  Agents  in  the  principal 
cities  in  Amapioa.       Gi^neral  Banking  Business  Conducted. 

Dapoaite  Raoelved  for  fiied  periods  at  favourable  rates,  which  may  b« 
ascertained  on  application  to 

UadOR  Offlea*  :  I.  PRINCES  STREET.  E.C.  t,  aad  2t,  tUYRMWUTt  S.W.  1. 
New  York  ikgenoy:  49,  Wall  Street. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office  1  IS,  Gracechnrch  Street,  London,  CC.  3. 


'Capital  Authorised 
Capital  issued 
Capital  Paid  Up  ... 
RMcrve  Fund 


£1.500,000 

1,126.000 

562,500 

600,000 


Branches : 

INDIA,   BURMAH,   CEYLON.    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS,    MAURITIU& 

The  Bank  Inys  and  sells  Bills  of  Exchange,  issues  Letters  of  Credit  aad 
Circular  Notes,  and  transacts  banking!  and  agency  business   in  cotmectioa  with 

the  l-ast,  on  terms  to  be  bad  on  application, 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  ouppant  aooounta  interest  is  allowed  at  3  per  cent,  per  aaiMMB  oa 

daily  balances. 


THE    BANK   OF 
BRITISH    NORTH    AMERICA. 

Established  1836.  INCORPORATED  by  ROYAL  CHARTER  ISM. 

PAID-UP  CAPITAL  ..  £I,oo.^,ooo.  RESERVE  FUND  ..   £62o,ooc. 

Head  Office:— 5,  GRACECHURCH   STREET,  LONDON,  E.C.  3. 
Court  of  Directors. 
Lt.-Col.  F.  R.  S.  BALFOUR.    Lieut  E.     EOFKREY  Hon.  A.  E.  MILLS,  M.P. 
I.  H.  BRODIE.  HOARE,R.N.V.R.   MaiorC, W. TOMKINSON 

J.H.  MAYNEOAMPBELL,  F.  LUBBOCK.  G.  D.  WHATMAN. 

E.  A.  HOARE. 

SPECIAL  FACILITIES  FOR  COLLECTION  OF  BILLS,  &c. 


Deposits  received  at  rates  which  may  be  obtained  on  applieatiea. 

ALL     KINDS     OF      BANKING      BUSINESS     TRANSACTED 


INSURANCE. 

ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head  Office  :  BARTHOLOMEW  LANE,  JLONDON,  E.C.  2. 


ASSETS    EXCEED    £24,000,000. 


Chalpman  : 

The    Hon.    N.    OHARLES    ROTHSCHILIX 


The  operations  of  the  Company  embrace  all  branches. 
of  Insurance. 

Full  information  respecting 

ESTATE    DUTY   and 

CHILDREN'S  EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  application 
to  the  Head  Office  as  above, 
OP  to  any  of  the  Offices  op 
Agencies    of    the    Company. 

O.  MORGAN  OWEN,  General  Manager. 


LIFE  ASSURANCE  AT  MINIMUM  RATES. 

A  Plan  of  Assurance  Specially  Adapted  for  Present  Times 
For  particuiars  address  ths 

GRESHAM  LIFE  ASSURANCE  SOCIETY, 

St.  Mildred'.  House,  Poultry,  E.C.  l-TD.. 


FOUNDKD      1S48. 


FUNDS     £10.500,000. 


THE  GRESHAM  FIRE  AND  ACCIDENT  INSURANCE 

SOCIETY,  LIMITED, 

Transacts  all  classes  of  Fire  and  Accident   Business. 

Chikf  Office:   St.  Mildred's  House,  Poultry,  Londom.  B.C. 


Zbc  5nveetore'  IReview, 


Voi.  XLI.— No.  1,044. 


SATURDAY,  JAN.  5,  1918. 


C'«i';pTp.V.')  Price  6d. 


PUBLISHER'S    NOTICES, 

IbC  3nPe6t0rS'  IReVteW  is  a  subscription  Joumal.  and  will 
oe  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
the  coaotry  and  abroad  by  the  first  mail,  on  Saturday  Morning, 
on  the  following  terms  ; — 

Om  Year,  £1  Ss.  Od.    Six  Months,  12s.  6d.    Three  Months,  68. 6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year,  £  I  88.  Od.     Six  Months,  Us.  Od.    Three  Months,  7s.  Od. 

Short  oi  Three  months  thf   Price  is  Bid.  per  Copy  Inland,  and 

7d.  Aoroad,  Post  Free, 

Cloth  cases  for  binding  the  Half  Yearly  Volumes  price  Is.  6<1., 

postage  4d.  extra.    Bound  Volumes  16a.  6d.,  or  16s.  3d.  post  free. 

Cneques  and  P.O.  Drafts  should  be  made  payable  to 

"Investors'  Review," 

Norfoll(  House,  Norfolic  Street, 
London,  W.C. 

Telephone  No. :  Telegraphic  Address : 

Gerrard9132.  "  Unveiling,  London," 

The  Bailor  caaaot  uaaertake  to  return  rejected  com- 
munications. 

Letters  from  correspondents  must.  In  every  case,  be 
autbeatlcated  by  the  name  and  address  of  the  writer. 

Tbe  Edlior  desires  it  to  be  understood  that  a  charge  is 
made  tor  the  insertion  of  reports  under  the  heading  of 
Company  Meetings,  and  they  cannot  accept  responsibility 
lot  ataiements  made  therein. 


ANSWERS   TO   QUERIES. 

One  Reply   to    One   Question  —  One    Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  kept,  as  securities  cannot  be  named  with  comments  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issne 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  in  advance,  a 
Key  to  the  previous  week's  replies  will  be  sent  early  in  tbe 
following  week. 

Deposits  of  "  Query  Money  ' '  may  be  made  in  advance,  and  will 
be  acknowledged  in  the  "Answers"  column,  Notice  of 
exhaustion  will  also  be  given  there. 

Telegrams  advising  about  new  securities  cost  Haiff-a' 
Cpowrn  each,  plus  cost  of  the  telegram. 

Ppivate  Letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
ShillingSi  but  for  this  three  questions  will  be  answered  if 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Haif^a-Crown  per  question. 

Correspondents  can  have  their  lists  of  investments  overhaaled 
and  advised  upon  by  letter  on  terms  varying  according  to  the  time 
taken. 

Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guineaa  each  list  different. 


Passing   Events. 

We  have  nine  days'  revenue  in  the  last  Treasury 
.statement,  because  it  was  no  use  issuing-  the  figures 
up  to  Saturday,  when  two  more  days  finished  the 
quarter.  In  these  nine  days  the  taxation  and  monopoly 
income  amounted  to  ^^10,360,000,  but  the  total  expendi- 
ture of  the  nine  days  was  ;^'28o,gg2,ooo.  What  does 
this  huge  figure  mean?  For  the  most  part,  it  means 
a  renewal  of  current  debts.  The  temporary  loans  alone 
paid  off  amounted  to  _;^i35,29i,ooo,  whereas  the  supply 
services  took  only  ;^3g, 969,000.  The  expenditure,  in 
short,  was  a  whirlwind  of  banking  exchanges,  of  ex- 
pired promises  to  pay  satisfied  by  the  issue  of  new  ones. 
Interest  on  the  floating  war  debt  itself  took 
^.^6,168,000,  while  the  permanent  war  debt  charge  was 
^'2,074,000 ;  but  beyond  all  this  the  Government  had  to 
pay  off  ;^85,048,oc)o  of  due  Treasury  bills,  besides 
;/^i  1,972,000  of  "Other"  war  debt,  so  that  the 
renewals  were  enormous,  although  only  ;^i,o8i,ooo 
more  of  the  Treasury  bills  were  sold  than  the  amount 
of  due  bills  repaid.  That  raised  the  total  outstanding 
of  this  form  of  debt  to  ;^'i, 058, 175,000,  and  the 
Treasury  had  to  raise  on  temporary  loan  no  less  than 
;^ 1 43, 4 1 7,000,  or  ;^8, 1 25,000  more  than  was  paid  off. 
It  also  received  ;^2i,7i4,ooo  from  the  sale  of  National 
War  Bonds  and  ;^i6, 133,000  from  other  borrowings, 
the  character  and  sources  of  which  arc  concealed.  But 
in  spite  of  all  the  Exchequer  balances  had  to  be  drawn 
upon  to  the  extent  of  ;£?2, 739,000,  bringing  them  down 
to  ;^i5, 594,000.  The  most  impressive  fact  about  this 
exhibit  is  the  growing  unwicldiness  of  tbe  floating  debts 
and  the  correspondingly  increasing  weight  of  the 
charges  they  impose  upon  the  Treasury. 


One  would  think  that  Treasury  officials,  no  matter 
how  much  the  slaves  of  routine,  would  begin  to  scent 
danger  when  they  find  themselves  at  frequent  intervals 
confronted  by  such  stupendous  amounts  of  debt  demand- 
ing renewal.  Apparently  they,  to  some  extent,  do  feel 
that  the  position  is  ticklish,  for  look  at  the  strenuous 
efforts  made  to  conjure  money  out  of  the  pockets  of  the 
public  by  "  tank  "  and  touting  sales  of  National  War 
Bonds  and  War  Savings  Certificates.  They  begin,  too, 
we  can  imagine,  to  find  that,  with  all  their  efforts, 
enough  is  not  being  done,  for  on  Monday  next  a  new 


type  of  bond  is  to  be  on  sale,   purchasable  anywhere 
over  the  counter,  or  put  into  the  hands  of  War  Savings 
Associations,  or  confided  to  firms,  shopkeepers,  every- 
body who  will  undertake  the  work  of  placing  them,  for 
retail   in    factories,   shops,   everywhere.      These   bonds 
are  for  ^^  each,  and  they  are  to  be  repayable  just  as 
the  larger  bonds  will  be  in  1927 ;  and  in  order  to  induce 
the  happy  mob  to  buy  them,    the  holders  will,   when 
1927  comes  round,  get  a  dazzling  bonus  of  is.  a  ;^i, 
or  5s.   in    all,   over  and  above    the  capital   repayable. 
This  seems  to  be  a  new  effort  to  avoid  that  sinful  thing, 
the  premium  bond.     It  affords  no  chance  for  a  lottery 
gamble,  you  see,  and  resembles  more  than  anything  else 
the  tip  to  the  waiter  after  the  feast.     Is  this  really  the 
best  our  official  financial  statesmanship  can  attain  to? 
What    are  the  Chancellor  of  the    Exchequer  and   his 
officials  thinking  about?    They  are  spending  money  at 
the  rate  of  ;^5o,ooo,ooo  to  ;^6o,oc)0,ooo  a  week.     Do 
they  expect  to  get  five  of  that  fifty  millions  a  week  by 
this  nevi'  essay  in  popularising  their  wares?    Why  could 
they    not   have    come   down   as    low   as    a    £1    bond 
and   "jewelled"  it  with  prizes?     By  bustling  around 
in    this    futile    way     they     are     not     only     borrowing 
peddlingly,  but  borrowing  dear.     Why  do  they  still  re- 
sist the  only  fertile  and  sure  method  of  catching  the 
nimble  notes  of  the  multitude  as  they  flutter  by?    They 
acquiesce  with  the  utmost  smugness  in  the  perpetra- 
tion of  all  manner  of  advertising  dodges — we  hesitate 
to  say  "  outrages  " — and  show  no  trace  of  shame  at 
bringing  the    National    Exchequer   and    its    necessities 
down   to   the   level   of   the   compiler   of   flaring   quack 
advertisements,  and  continue  to  dismiss  with  an  air  of 
super-^sajnctified  horror  a  straightforward  exjpedient  be- 
cause  it   involves   some   inequality   in   the  chances   of 
those  who  are  induced  by  it  to  contribute  their  money 
to  the  help  of  the  State  during  the  time  of  its  utmost 
need.     You  can  see  the  prim  official  elevating  his  eyes 
to  the  ceiling  in  devout  repulsion,  so  that  he  has  no 
vision  left  for  the  danger  which  threatens  the  country. 
Every  week  that  the  war  goes  on  increases  the  peril 
that  our  fumblingly  guided  finance  may  cause  us  defeat 
in   the  end   no  matter   how   valiant   our   soldiers   and 
sailors  may  be.     Why  could  not  our  officials  beg  the 
loan  of  an  expert  from  the  Credit  Fonder  of  France  to 
teach  them  how  to  issue  premium  bonds  if  they  do  not 
know  themselves  ? 


XTbe  Jnpestore'  TRevlew* 


January  5,   igi8. 


Officially  the  applications  for  the  Bank  of  England 
issue  of  National  War  bonds  made  during  the  week 
ended  on  Saturday  last,  December  29,  numbered 
"..749.  ^"d  represented  ;^9,5 15,575  in  money.  This 
raises  the  total  number  of  applications  to  205,998,  and 
the  money  received  to  ;^i96,839,309.  Last  week's 
total  was  a  small  one,  but  that  is  not  surprising  be- 
cause it  was  a  week  broken  by  the  Christmas  holidays. 
The  total  amount,  however,  is  still  much  short  of  our 
necessities,  and  the  bonds  issued  by  the  Post  Office 
havQ  not  done  much  to  reinforce  the  Bank  of  England 
issue.  In  the  week  ended  December  22  the  Post  Office 
had  117,000  applications  for  its  separate  issue,  repre- 
senting ;^2, 227,000  in  money,  and  this  brought  up  the 
total  applications  there  to  date  to  481,000,  and  the 
money  total  to  ;^i  1,097,000.  For  the  same  week, 
that  is  up  to  a  fortnight  ago,  the  number  of  War 
Savings  certificates  sold  was  1,835,849,  making  the 
aggregate  number  to  date  136,398,133.  Why  cannot 
the  Treasury  put  down  the  money  received  for  these 
certificates?  There  is  no  object  in  concealment. 
Everybody  knows  that  the  certificates  are  sold  at  a 
discount  representing  the  five  years'  compound  interest 
at  5  per  cent.,  to  be  added  to  the  amount  five  years 
hence,  when  the  certificates  come  to  be  paid  off  or 
converted  into  another  form  of  debt.  The  money  re- 
ceived is  ;^I05, 708,553.  .So  five  years  hence  the  Ex- 
chequer will  have  to  hand  back  nearly  ;^3 1,000,000 
more  than  it  has  encashed.  This  looks  like  very  ex- 
pensive borrowing,  does  it  not  ? 


The  article  on  another  page  on  Russian  affairs  may 
be  said  to  be  already  partly  out  of  date,  although 
written  only  four  days  ago.  Thus  do  Russian  affairs 
change,  one  may  say,  from  hour  to  hour.  Perhaps 
we  should  have  left  the  article  out,  but  that  it  indicates 
what  we  consider  to  be  the  only  proper  and  wise 
method  of  dealing  with  the  Russian  crisis.  As  we 
anticipated,  the  Germans  have  overreached  them- 
selves,, and  their  insane  cupidity  gives  us  our  chance. 
Happily  the  man  appointed  by  the  I^enin-Trotsky 
Government  to  be  Ambassador  for  Russia  in  ■  oncion 
is  a  man  of  principle  and  character,  whom  our  foreign 
Secretary  can  enter  into  communication  with  in  perfect 
confidence  that  he  will  not  be  called  Upon  to  assume 
any  attitude  injurious  to  his  dignity  and  hurtful  to  the 
Government  prestige.  We  hope  it  is  true,  as 
rumoured,  that  if  the  Bolshevik-based  Government  in 
Petrograd  shows  sufficient  basis  of  support  in  the 
country,  it  will  be  provisionally  recognised  and  entered 
into  direct  communication .  with.  There  must  be  no 
aristocratic  hauteur  in  dealing  with  the  new  situation 
created  for  us  by  the  bungling  interference  of  that 
vulgar  trickster,  von  Kiihlmann,  and  his  associations, 
Prussian  and  .A.ustrian. 


The    following    is    a    translation   of  a   finely-worded 
message  of  comradeship  and  fraternity  that  has  been 
sent   to  the   President  of  the  French  Republic  by  the 
Anglo-French  Society  : — 
To  the  President  of  the  French  Re.fmblic. 

The  Anglo-French  Society,  which  has  been  forn-ed  ?s  a  mark 
of  British  admiration  for  France,  .sends  to  the  French  nation 
through  you  a  message  of  fraternal  greeting.  That  the  year 
igi8  may  see  the  victory  of  our  allied  armies,  the  restoration  to 
f  ranee  of  her  lost  provinces,  the  liberation  of  her  invaded  terri- 
tory, and  the  complete  overthrow  and  punishment  of  the  mili- 
tary power  which  has  sought  to  place  Europe  in  bondage,  is  the 
prayer  of  all  its  members.  Confident  that  thc«e  hopes  will  be 
lealised,  we  will  spare  no  effort  to  make  known  in  this  country 
the  debt  which  all  civilisation  owes  to  France  for  the  sacrifices 
she  has  made  in  withstanding  the  savage  onrush  of  our  com- 
mon enemy.  The  society  has  set  before  itself  the  aim  of  making 
known  to  British  people  the  ideals  and  aspirations  of  the 
u  "Pj  J"*''""'  *"^  "'^  venture  to  suggest  that  similar  efforts 
should  be  made  as  soon  as  possible  in  France  to  acquamt  the 
French  people  with  the  British  outlook  on  life.  We  are  con- 
vinced  that  by  such  means  the  ties  of  friendship  which  unite 
the  two  nations  will  be  greatly  strengthened,  that  the  two 
peoples  will  learn  to  appreciate  each  other's  pood  qualities 
better,  and  that  there  will  be  less  risk  of  the  baneful  German  in- 
fluence again  mak.ne  itself  felt  in  our  two  countries.  (Signed) 
BmvHAM.  President. 
Hknrv  n.  Davray,  Hoint  Honorary 
W.  O.  Hi.si.OP,  r    Secretaries. 

8,  St.  Martin's  Place,  London,  W.C. 


At  last  tangible  proof  is  forthcoming  of  the  improve- 
ment in  Mexican  conditions  which  has  occurred  within 
recent  months.  It  is  announced  that  the  Guanajuato 
Power  and  Electric  Co.,  the  Michoacan  Power  Co.,  and 
the  Central  Mexico  Light  and  Power  Co.  have  resumed 
the  payment  of  interest  on  their  6  per  cent,  first  mort- 
gage bonds,  which  fell  into  default  in  1915.  Coupons  on 
the  Guanajuato  bonds,  due  October  1,1915,  and  those 
on  the  Michoacan  bonds  and  Central  Mexico  bonds, 
due  July  i,  191 5,  were  declared  payable  on  January  i, 
together  with  interest  at  6  per  cent,  for  the  period  of 
delay,  which  makes  the  payment  per  $1,000  Guanajuato 
bond  $34.05,  and  per  $1,000  Michoacan  and  Central 
Mexico  bond  $34.50.  It  is  stated  that  these  three 
companies,  in  which  Messrs.  W.  P.  Bonbright  and  Co. 
are  interested,  were  the  last  of  the  Mexican  companies 
to  default  and  the  first  to  resume  payments.  The 
fact  that  the  companies  are  able  to  resume  payments 
is  due  to  the  resumption  of  payments  of  the  company's 
bills  in  Mexican  silver  instead  of  in  depreciated  paper 
currency.  It  is  hoped  that  additional  coupons  will  be 
paid  in  the  near  future.  The  general  managers  of  the 
companies  state  that  the  somewhat  improved  conditions 
in  Mexico  are  particularly  noticeable  as  regards  financial 
conditions  due  to  the  resumption  of  specie  payments. 
One  swallow  does  not  make  a  summer,  but  holders  of 
Mexican  securities  are  entitled  to  derive  some  satisfac- 
tion from  this,  the  first,  indication  of  the  trend  oF 
events  in  Mexico,  though  it  is  too  soon  yet  to  hope  that 
the  Government  will  be  able  tio  settle  with  its  creditors. 


\ 


As  we  mentioned  in  dealing  with  the  report  of  Peek 
Bros,  and  Winch,  Ltd.,  the  preference  dividend  has 
fallen  into  arrears  to  the  extent  of  271^  per  cent.,  and 
a  circular  has  now  been  issued  setting  forth  a  scheme 
of  readjustment  to  deal  with  this  unfortunate  position. 
It  is  proposed  that  two  years'  dividend  sliall  be  gaid 
in  cash  and  three  years'  dividend  in  3J  per  cent,  de- 
benture stock  at  par.  Thus  a  holder  of  20  preference 
shares  would  receive  ;^ii  in  cash  and  /,"i6  los. 
nominal  <n  debenture  stock.  Of  course,  the  latter  is 
not  woi  th  a-.ything  like  par,  but  the  preference  holders 
will  probably  be  disposed  to  accept  the  offer  gratefully. 
More  criticism  is  likely  to  arise  over  the  second  portion 
of  the  scheme.  The  existing  ;^5  shares  are  to  be 
divided  into  shares  of  £1  each,  and  the  preference  will 
receive  three  cumulative  5J  per  cent.-  "A"  shares  and 
two  non-cumulative  6J  per  cent.  "B"  shares,  while 
the  ordinary  will  receive  four  new  ordinary  shares  and 
one  "B"  share.  It  is  certainly  a  novelty  to  give 
ordinary  shareholders  even  a  small  proportion  of  pre- 
ferential rights,  and  as  the  present  preference  holders 
are  asked  to  make  substantial  sacrifices  they  are  likely 
to  demur  at  this  part  of  the  proposals.  However,  there 
are  decided  advantages  in  making  some  such  re- 
arrangement of  the  capital,  and  it  would  be  a  pity  if 
the  .scheme  were  shipwrecked  for  a  comparatively 
small  flaw. 


At  the  meeting  of  the  company  held  this  week  the 
scheme  was  not  formally  submitted,  but  there  was  a 
friendly  discussion  of  the  terms,  which  on  the  whole 
appeared  to  have  a  favourable  reception.  Perhaps  that 
was  partly  due  to  the  breezy  remarks  of  the  chairman, 
Mr.  Edmund  Burke,  about  the  Food  MinistVy.  "  I 
am  not,"  Mr.  Burke  declared,  "going  to  utter  one 
word  against  Lord  Rhondda  personally.  He  is  a  well- 
intentioned  peer,  who  is  trying  to  feed  the  people  on 
printed  forms.  But  he  is  struggling  with  an  impossible 
task  and  working  with  impossible  tools — officials  picked 
up  heaven  knows  where,  and  placed  in  control  of  great 
trades  requiring  technical  knowledge  and  experience 
of  which  they  are  utterly  destitute.  This  Food  Control 
is  partly  a  folly,  partly  a  sham,  but  it  is  altogether  a 
crime  against  the  public,  and  especially  the  poor.  It 
has  raised  prices,  it  has  hoarded  stocks,  it  has  created 
artificial  as  well  as  real  scarcity,  it  has  been  a  blunder- 
ing, ineffective  and  costly  administration.  You  know 
.something  about  the  sugar  card  fiasco,  and  you  have 
felt  the  pinch  of  the  sugar  famine.  But  you  may  not 
know  that  during  recent  months  this  precious  Govern- 


January  5,  1918. 


XTbe  Jnpe^tors'  iKeview. 


ment  Department  has  bten  hoarding  up  sugar  by 
thousands  of  tons  and  gorging  the  warehouses  with 
twice  the  stocl<s  they  contained  a  year  ago.  I  say 
nothing  about  tea,  except  that  want  of  shipping  is  not 
accountable  for  the  shortage,  and  that  the  Government 
are  compelling  us  to  pay  prices  which  are  25  per  cent, 
to  50  per  cent,  too  high,  and  giving  us  insufficient 
quantity  at  that.  All  the  queues  are  preventable,  und 
most  of  the  scarcity  is  preventable.  The  whole  of  the 
red  tape,  the  whole  of  the  army  of  officials,  might  be 
scrapped  to-morrow  with  advantage  to  the  State." 
ITiat  there  is  a  good  deal  of  truth  in  Mr.  Burke's  caustic 
comments  will  be  generally  admitted,  but  we  have  gone 
too  far  easily  to  retrace  our  steps,  and  we  must  try  to 
make  the  best  of  a  bad  business.  The  statement,  how- 
ever, with  regard  to  the  stocks  of  sugar  is  decidedly 
significant,  in  view  of  the  fact  that  the  figures  were 
omitted  from  last  month's  Board  of  Trade  returns.  Is 
it  really  necessary  to  attempt  to  fool  the  public  in  tnis 
way? 


Molson's  Bank,  with  its  head  office  in  Montreal,  is 
not  much  known  here,  but  it  has  a  fine  business  in  the 
Dominion,  and  the  report  for  the  year  to  September  30 
shows  further  progress.  Nett  profits  amounted  to 
$615,500,  an  increase  of  $33,000,  and  after  paying  the 
usual  dividend  of  11  per  cent.,  and  setting  aside 
$75,000  for  depreciation  of  investments,  the  balance 
forward  is  raised  $24,000  to  $151,800.  Notes  in  circu- 
lation have  expanded  $1,800,000  to  $6,650,000,  and 
deposit,  &c.,  accounts  have  increased  $2,600,000  to 
$48,400,000.  Cash  notes  and  securities  are  $4,300,000 
higher  at  $28,508,000,  and  discounts,  &c.,  have  ad- 
vanced $1,300,000  to  $37,272,000.  The  balance-sheet 
totals  at  the  handsome  amount  of  $65,780,000.  an  in- 
crease of  $5,600,000.  Mr.  William  Molson  Macpher- 
son,  the  president,  in  his  annual  address,  emphasised 
the  fact  that  the  present  business  prosperity  depends 
to  such  a  large  extent  on  war  conditions  that  there  is 
bound  to  be  a  change  when  peace  comes,  so  that  it  is 
the  duty  of  all  classes  to  prepare  for  such  a  change 
by  conserving  the  profits  they  are  now  enjoying.  He 
also  pointed  out  that  while  the  banks  had  come  to  the 
assistance  of  the  Government  in  raising  War  Loans, 
it  is  much  better  for  the  country  that  the  money  as  far 
as  possible  should  be  subscribed  by  the  general  public 
instead  of  by  the  banks,  as  this  avoids  inflation,  and 
allows  the  banks  to  use  their  resources  in  forwarding 
the  business  interests  of  the 'country.  Altogether  a 
very  useful  speech,  timely  and  to  the  point. 


In  spite  of  the  many  difficulties  attending  the  con- 
duct of  trust  and  financial  business,  the  London 
Scottish  .'Vmerican  Trust  continues  to  render  a  good 
account  o-";  itself.  For  the  financial  year  ended  October 
31  last  revenue  from  all  sources  amounts  to  ^,99,500, 
an  increase  of  ^"10,000  on  that  of  the  previous  year. 
This  is  particularly  satisfactory  when  it  is  borne  in 
tnind  that  the  balance  of  profit  on  realisation  of  securi- 
ties was  more  or  less  negligible,  while  profit  on  ex- 
change was  smaller  than  in  the  previous  year.  After 
deducting  income-tax,  expenses,  debenture  interest, 
&c.,  there  remains  ^^10,200  more  available  at  ;^"52,250, 
a  sum  exceeding  the  amount  required  to  repeat  the 
dividend  of  7  per  cent,  on  the  deferred  stock 
^y  ;^9.i40-  The  payment  of  the  dividend  leaves 
^8,500  more  at  ;^i 4,300  to  go  forward.  Several  move- 
ments have  taken  place  in  the  balance-sheet  items,  but 
they  call  for  no  comment.  The  investments  are  taken 
at  book  cost,  as  usual.  From  the  abstract  of  invest- 
ments, we  see  that  bonds  of  railways  and  other  under- 
takings in  the  United  States  have  been  reduced  by 
;6 1 2 1, 000  to  ;^^504,ooo,  while  investments  in  British 
(iovernment  issues  exhibit  an  increase  of  ;£,"i 55,000  at 
£:498,ooo. 

• 

The  directors  of  the  Trust  and  Loan  Co.  of  Canada 

decided  in  March  last  to  issue  the  report  and  accounts 

in  the  future  only  for  the  whole  year,  but  at  the  general 

meeting  it  was  agreed  to  issue  an  interim   report  for 


the  period  to  September  30,  and  this  has  now  made  its 
appearance.  Revenue  is  some  ;£,'9,ooo  lower  at 
^£,'134,600,  but  as  the  charge  in  respect  of  interest  on 
amount  of  special  reserve  uninvested  does  not  recur,  the 
balance  of  nett  profit  only  exhibits  a  shrinkage  of 
p£,6,ooo  at  ^'60,200.  The  payment  of  the  interim  divi- 
dend at  the  rate  of  10  p^er  cent,  leaves  a  balance,  in- 
cluding ;^6,o3o  brought  in,  of  £:36,26o,  but  this  is,  of 
course,  subject  to  the  statutory  reserve  fund  moiety  of 
profits  allocation  to  be  deducted  when  the  accounts  for 
the  full  financial  year  are  made  up.  Investments  in 
Canada  and  sundry  debtors  have  been  reduced 
^204,000,  cash  and  temporary  investments  in  London 
exhibit  increases  of  ^38,000  and  ;^66,ooo  respectively, 
;^8i,ooo  more  is  invested  in  War  stock,  and  debentures 
have  been  reduced  ;^64,ooo. 


Although  the  profit  of  the  Blaenavon  Company  for 
the  financial  year  ended  September  30  last  exhibits  a 
severe  shrinkage  on  the  record  figure  of  the  previous 
year,  it  is  well  above  the  average  of  the  past  decade 
and  compares  very  favourably  with  the  slump  years 
1911  and  1914,  when  the  company  only  succeeded  in 
netting  ;^7oo  and  ;^6oo  respectively.  Gross  income 
at  ;<^75.ooo  's  ^"65,000  down,  but  reserve  and  depre- 
ciation allocations  are  ;^"4i,ooo  smaller  at  ;^52,ooo,  so 
that  the  amount  available  is  ;^24,3oo  less  at  ;^i2,52o. 
Fortunately  ;^28,5oo  more  was  brought  in  from  the 
previous  year,  so  that  the  board  are  able  to  repeat  the 
7|  per  cent,  dividend  and  to  leave  the  carry  forward 
o"'y  j6^5'88a  down  at  ;^'26,255.  Considerable  sums 
have  been  expended  during  the  year  on  capital  account, 
the  item  land,  buildings,  plant,  machinery,  &c.,  being 
;693'OOo  up  at  ;^^730,ooo.  This  development  has 
naturally  rendered  necessary  recour.^e  to  credit,  and 
there  is  now  ;^85,ooo  more  outstanding  in  respect  of 
loans  and  bills  payable.  The  capital  iias  been  mostly 
expended  on  steel  works  and  blast  furnace  extensions, 
the  completion  of  the  new  coal  washery  and  water 
softening  plants  and  improved  railway  sidings.  Owing 
to  war  conditions  the  progress  of  new  work  in  all 
directions  has  been  retarded,  and  the  expected  benefit 
in  increased  output  and  reduced  cost  of  production  has 
been  delayed  in  consequence.  Part  of  the  steel  works 
extension  has  been  completed  since  September,  and 
the  whole  of  this  .section  should  be  in  commission  in  a 
few  months'  time. 


'i  kc  -Mount  Elliott  Company  has  had  an  unhappy  ex- 
perience during  the  year  ended  June  30.  A  year  ago  it 
was  expected  that  the  new  works  would  have  been 
completed  so  as  to  enable  smelting  to  be  resumed  in 
March  last,  but  the  coal  strike  at  the  end  of  1916  caused 
a  delay  until  early  in  June.  Satisfactory  results  were 
not  obtained,  and  smelting  operations  ceased  on 
October  21,  up  to  which  date  there  had  been  produced 
682  tons  of  blister  copper  and  100  tons  of  copper  matte 
and  chippings,  as  compared  with  2,017  tons  of  blister 
copper  in  the  year  ended  June  30,  1916.  Alterations  to 
the  plant  are  now  being  effected,  and  financial  arrange- 
ments have  been  made  with  a  view  to  provid- 
ing sufficient  funds  to  carry  on  until  smelting 
operations  are  resumed.  After  allowing  ^^'9,097 
for  depreciation  there  was  a  nett  profit  of 
;£,  1,149  o"  the  year's  operations  as  compared 
with  ^^29,938.  Including  the  sum  brought  in  the 
amount  carried  forward  is  ;^32,34g.  Mining  work  has 
developed  a  considerable  tonnage  of  ore,  and  the  con- 
sulting engineer's  estimate  of  ore  reserves  is  as 
follows  : — Ore  at  grass  and  in  bins,  including  matte, 
21,600  tons,  as.saying  6.4  per  cent,  copper ;  in  the  mines 
ronnected  by  railway,  180,000  tons,  assaying  5.7  per 
cent,  copper;  Mount  Oxide  mines,  60,000  and  50,00a 
tons,  assaying  7  per  cent,  copper. 

The  dividend  declarations  of  the  Rand  mining  com- 
panies are  now  practically  comolete.  As  was  to  be 
expected,  in  view  of  the  decrease  in  production  and 
increased  working  co'^ts,  comparison  with  1916  shows 
a  further  shrinkage  in  the  amount  distributed.      The 


Zbc  Jnvcstore'  TReview. 


January  5,  1918. 


Consolidated  Main  Reef  will  not  declare  a  dividend  for 
the  past  half-year  until  the  fusion  with  the  Main  Reef 
West  has  lx;en  complettd,  and,  assuming  that  the  rate 
is  again  5  per  cent.,  and  that  the  Robinson  Deep  "  A  " 
dividend  is  only  deferred,  the  amount  distributed  in 
dividends  will  be  £'6,750,000,  a  decrease  of  about 
£^380,000  on  1916,  which  in  turn  showed  a  reduction  of 
£'400,000  on  1915.  The  most  interesting  declaration 
of  the  first  half-year  is  that  of  the  Government  Areas 
of  Moddcrfontein,  which  is  making  a  maiden  distribu- 
tion of  12 J  per  cent.  In  the  subjoined  table  a  com- 
parison is  made  of  the  distributions  of  the  companies 
for  the  past  three  half-years  : — 


Apex  ....; 

Brakpan  

Central  Mining    

City  and  Suburban 

City  Deep 

Consolidated  Langlaagte 

Crown  Mines    

Durban  Roodepoort    

Durban  Roodepoort  Deep    ... 

East  Rand  Prop 

Ferreira  Deep 

Geduld   

Geldenhuis  Deep 

Ginsberg , 

Government  Areas  (Modder)    . 

Jupiter   

Knights  (Wit.) , 

Knights  Deep  

Langlaagte  Est 

Meyer  and  Charlton   

Modderfontein  B 

Modderfontein  Deep 

New  Goch , 

New  Heriot  

New  Kleinfontein    

New  Modderfontein    

New  Primrose 

New  Unified 

Nourse    

Rand  Mines 

Rand  Selection  Corporation.. . . 

Randfontein  Central 

Robinson  

Robinson  Deep  "  A  "  Deferred 

Rose  Deep    

Simmer  and  Jack 

Sub-Nigel 

Van  Ryn    

Van  Ryn  Deep     

Village  Deep    

Village  Main  Reef  

Wit.  Deep     

Wolhuter 


Second 
Half 
1917. 


1  Free  of  tax. 


For  year. 


% 
7i 

ir 

74 
20 
10 

ml 
"i 
5 
7i 

5 

I2i 

35 
15 
nil 

5 
60J 

45 
45 

2i 
25 

5 

5 
7J 
6i 
70 

174 
nil 


174 
24 
74 

"4 

22A 
8| 

lot 

nil 
5 


First 
Half 
1917. 


Second 
HaU 
igi6. 


5 

22i 
2it 

H 
22J 
10 
20 

5 

nil* 

i7i 

5 

124 

5 
nil 

3? 
20 

5 

5 
50 
40 

40 

5 

30 

ml 

nil 
74 
6i 

75 

12, 

nil 

34 

400 

"24 
3S 
74 

174 

20 

74 
lot 

5 


% 
5 

22il 

5f 
61 

224 

10 

»5 
10 
nil 
nil 
16I 

5 
12J 

ml 
3i 
25 
10 
nil 

55 
40 

374 

5 
40 
nil 
i6i 

5 
10 

6i 
75 
15 
nil 

4 
400 

"J 

3J 
5 

174 

20 

10 

i5t 
10 

74 


Including  bonus  of  2s. 


Nine  Far  Eastern  Rand  mines  have  among  them  distri- 
buted no  less  than  41 J  per  cent,  of  the  total  dividends, 
as  again.st  35  per  cent,   in    1916. 


The  principal  copper  producers  of  Australia  have 
formed  a  concern  called  the  Australian  Copper  Pro- 
ducers' Proprietary,  Ltd.,  to  handle  their  production 
and  deal  with  other  matters  of  mutual  interest.  The 
coTicerns  participating  in  this  joint  concern,  which  has 
been  formed  to  protect  the  interests  of  the  industry  as 
a  whole,  include  the  Mount  Lyell,  Hampden-Cloncurry, 
Mount  Morgan,  Mount  Elliott,  the  Electrolytic  Copper 
Co.,  and  a  number  of  others^  The  lead  and  zinc  pro- 
ducers have  already  formed  joint  concerns  of  a  similar 
character. 


The  Standard  liank  of  South  Africa,  Ltd.,  announces  that  a 
branch  has  been  opened  at  Muanza  on  Lake  Victoria  Nyanza. 

Messrs.  Urown,  Shipley  and  Co.  announce  that,  owing  to  diffi- 
culties  created  by  war  taxation  both  in  this  country  and  in  the 
ITnited  States  of  America,  it  has  been  found  necessary  to  dis- 
solve, as  from  the  31st  ultimo,  the  partnership  which  has  for  so 
many  years  subsisted  between  them,  so  far  as  Messrs.  Brown 
Brothers  and  Co.  are  concerned.  The  two  firms,  however,  will 
continue  to  work  in  close  and  intimate  relationship  as  each 
other's  correspondents  and  agents,  and  the  English  partners 
will  continue  to  carry  on  business  in  co-partnership  as  hereto- 
fore under  the  name  of  ""brown,  Shipley  and  Co.,"  at 
Founders'  Court,   E.C.  2,  and  123,   Pall   Mall,  S.W.  i. 


Nine  Months'  Revenue. 

There  is  every  reason  to  be  gratified  with  the  way 
revenue  has  flowed  into  the  Treasury  during  the  past 
nine  months ;  it  is  only  when  we  look  at  the  other 
side  of  the  account  that  we  feel  any  misgivings.  With 
the  exception  of  Excise  practically  every  heading  of 
income  shows  an  increase.  It  is  rather  remarkable 
that,  in  spite  of  the  submarine  outrages,  and  the  re- 
strictions on  imports  of  such  things  as  tea  and  tobacco, 
Customs  show  the  substantial  advance  of  £2,167,000, 
and  if  receipts  continue  at  the  same  rate  during  the 
current  quarter  the  estimate  of  £70,750,000  for  the 
whole  year  will  be  comfortably  realised.  Excise  has 
dropped  £13,286,000,  of  which  £5,956,000  fell  within 
the  past  three  months,  but  that  is  entirely  due  to  the 
drastic  regulations  with  regard  to  spirits,  wine,  and 
beer.  This,  however,  was  budgeted  for,  the  estimate 
for  the  whole  year  being  £34,950,000,  and  that  figure 
ought  to  be  easily  reached  if  it  is  so  desired.  Estate 
duties  have  already  brought  in  £23,193,000  out  of  a 
total  of  29  millions  expected,  and  this  is  an  improve- 
ment of  £1,329,000  on  the  corresponding  period. 
Stamps  also  have  done  fairly  well,  and  income-tax  has 
produced  an  increase  of  £15,514,000.  For  the 
financial  year  the  yield  is  put  at  £224,000,000,  which 
means  that  £156,000,000  must  be  collected  between 
now  and  March  31.  As  that  represents  more  than 
three-fourths  of  the  total  pre-war  taxation  it  is  a 
terrible  sum  to  draw  out  of  the  pockets  of  the  public 
in  such  a  short  time,  but  the  country  is  prosperinj^ 
in  a  wind-generated  kind  of  way,  and  can  probabl> 
stand  a  good  deal  more  than  it  has  yet  been  asked 
to  do.  We  judge  that  from  the  experience  with  re- 
gard to  excess  profits  duty.  In  the  past  nine  months 
this  impost  has  produced  almost  149  millions,  or  over 
69  millions  more  than  in  the  corresponding  period, 
while  the  estimate  for  the  12  months  was  200  millions. 
As  the  final  quarter  is  certain  to  be  exceptionally  pro- 
ductive, we  shall  be  greatly  surprised  if  this  total  is 
not  much  exceeded.  Nothing  else  in  the  return  calls 
for  mention  except  the  large  increase  of  nearly  35 
millions  in  miscellaneous  receipts  which  already  sur- 
passed the  estimate  by  nearly  £20,000,000.  No  doubt 
the  bulk  of  this  is  due  to  interest  charged  against  the 
loans  we  have  made  to  the  Allies  and  Dominions.  We 
cannot  imagine  any  other  explanation,  although  there 
may  have  been  unusually  large  profits  on  silver  opera- 
tions. But  we  should  like  to  know  whether  the  interest 
has  actually  been  paid  or  whether  it  is  merely  added  to 
the  capital  of  the  debts.  For  the  time  being  it  may 
be  necessary  to  make  a  bookkeeping  entry  of  this 
kind,  but  it  does  not  seem  right  to  treat  the  amount 
as  actual  revenue,  and  an  explanation  by  the  Chan- 
cellor would  be  welcome.  .Altogether  revenue  shows 
an  increase  of  £107,500,000  over  last  year,  and  if  it 
had  not  been  for  the  self-denying  ordinance  with  re- 
gard to  Excise  the  advance  would  have  been  well 
over   120  millions. 

All  so  far  is  very  comforting,  but  when  we  look  at 
the  expenditure  the  totals  are  formidable  to  a  point 
that  is  really  staggering.  In  the  nine  months  the 
issues  chargeable  against  revenue  amounted  to  2,029 
millions,  or  fully  1,600  millions  more  than  the  revenue. 
Interest  on  war  debt  required  46i  millions  more,  and 
supply  services  420  millions  more  than  last  year.  Are 
we  getting  any  sort  of  value  for  this  huge  increase? 
Well,  a  great  deal  of  it  is  perhaps  inevitable,  as  we  are 
maintaining  larger  forces  both  in  the  fighting  line  and 
as  reserves,  and  in  the  essential  business  of  transjwrt 
and  supply.  But  there  is  an  accumulating  mass  of 
evidence  that  the  wastage  not  only  in  the  fighting 
forces  (much  of  which  is  inevitable  under  any  circum- 
stances), but  in  Government  offices,  has  reached  a 
point  that  is  positively  scandalous.  There  is  the  story 
of  the  gentleman  appointed  to  ^  very  responsible 
position  whom  the  Treasury  insisted  should  be  assisted 
by  a  staff  of  30  or  40  clerks.  It  was  understood  that 
he  could  not  properly  support  his  dignity  with  less, 
and  besides  he  was  entitled  to  them  according  to 
Treasurv    rule-of-thumb   methods.     But   the   official   in 


January  5,  1918. 


Hhe  investors'  lRcv>tew« 


question  only  required  one  clerk  and  a  typist,  and 
after  threatening  to  "  chuck  the  job  "  he  got  his  way  ! 
There  are  thousands  of  cases  of  that  kind  all  over  the 
place,  and  thousands  of  girl  clerks  whose  main  duty 
is  to  make  tea  for  each  other.  The  latest  outrage  is 
that  they  are  going  to  swarm  over  the  British  Museum, 
although  the  Admiralty  has  a  whole  rabbit  warren  of 
offices  absolutely  unoccupied.  Surely  the  Office  of 
Works,  or  whichever  department  is  responsible,  ought 
to  be  able  to  manage  better  than  that.  These  things 
may  appear  to  be  trifles,  but  the  cumulative  effect  is 
appalling,  and  the  Munitions  Ministry  is  earning  for 
itself  a  reputation  for  lavish  incompetence  which  has 
never  been  equalled  in  this  or  any  other  country.  War 
and  waste  go  hand  in  hand,  but  when  the  bill  for  nine 
months  foots  over  2,000  millions,  it  is  high  time  that 
Mr.  Godfrey  Collins'  Committee  got  down  to  real 
business,  and  obtained  powers  to  put  a  stop  to  the 
numerous  scandals  that  are  crying  aloud  for  redress. 
During  the  nine  months  2,031  millions  Treasury  bills 
were  issued,  but  1,437  millions  were  repaid,  and  of 
838  millions  of  ways  and  means  advances,  777  millions 
were  repaid.  Just  over  1,030  millions  of  other  war 
debt  came  into  existence,  and  it  is  noteworthy  that  the 
depreciation  fund  for  the  support  of  the  5  per  cent. 
War  Loan  has  absorbed  26i  millions.  That  seems  a 
very  much  larger  sum  than  ought  to  have  been  neces- 
sary, and  we  wonder  if  any  of  the  big  subscribers  have 
been  "ratting"?  Anyhow,  the  account  balances  at 
the  huge  total  of  4,33,'?  millions,  or  1,120  millions  more 
than  last  year,  and  Exchequer  balances  have  been  re- 
duced by  almost  ;^io,ooo,ooo  to  the  low  level  of 
^ic;, 600,000.  Would  it  not  be  worth  while  to  have 
a  real  inquiry  into  this  vast  expenditure?  It  would 
not  surprise  us  if  it  could  be  reduced  20  or  25  per  cent. 
with    a   corresponding    increase    in   efficiency. 


Revenue  Returns. 

I.— AN  ACCOUNT  OF  THE  TOTAL  REVENUE  OF  THE  UNITFD 
KINGDOM  in  the  undermentioned  periods  of  the  year  ending 
Marcli  31,  1918,  as  compared  with  the  corresponding  periods 
of  the  preceding  year. 


(juarier  Irom  O  t.  1  to  Dec.  31,  1917, 

compared  wiih  the  c  rresponding 

quarter  rif    he  nrpcedinp  vpar. 

1  =  "^ 

B^^.6 

V 

6 

rt-o  0  0, 

V 

s 

Of  «Q 

C?wQ 

c 

0 

£ 

£ 

£ 

£ 

Customs       

8.458,000 

rS  810  000 

372,000 

Excise           

0.614.000 

16,570  000 

— 

5,956,000 

Estate,  &.C.,  Duties          

8,142,000 

6,68fi,ooo 

I  456,000 

— 

Stamps         

2,243,000 

1,945,000 

sgS.ooo 

— 

Land  Tax     

— 

lo,ono 

— 

lO.COO 

House  Duty            

100,000 

80,000 

20,000 



Property  and  Income  Tax  (includine 

Super-Tax)           

17,390,000 

17.538,000 

— 

198,000 

Excess  pr  fitQ  Duties,  &c 

61, Ml, 000 

48,443,000 

13,168  o-o 

— 

Land  Value  Duties         

82,000 

40,000 

42.0f 0 



Postal  Service        

5,450,000 

5,2-0.000 

250, or  0 



Teleeraph  Service            

050,000 

9'  0,000 

5".oo 



Telephone  Service          

1,6  0,000 

1,500,000 

100,000 

_ 

Crown  Lands         

240,000 

230,000 

10,000 

. 

Receipts  from  Sundry  Loans,  &c.    . . 

339099 

2,441, '34 

2,102,035 

Miscellaneous        

18,209,164 

8,754,578 

9  45J,586 

— 

145,428763 

129.217712 

24,848,586 

8,638,035 

£16210,551 

Nntt  I  crea'^e. 

Period    from  April    i   to  Dec.   31,    1917, 

compared  with  the  correspondinji  Period 

of  th  -  preceding  Y-ar. 

-C  w>^  . 

-d  mJI  . 

S 

^ 

'^•^  K  3> 

i^^s, 

u 

o^Sq" 

Q,  Sq 

- 

Q 

£ 

£ 

£ 

£ 

Customs 

5^,TI0,00O 

■;  0,94  3, 000 

2,i67,oco 

Excise           

iS, 204,000 

41,490,000 

— 

13,286,000 

Estate,  &c.,  Duties 

23.193,000 

2i,8">4,ooo 

1,329,000 

— 

Stamps 

5,634,000 

5,42  1,000 

214,000 

— 

Land  Tax 

to.  a  10 

SO.OOO 

10,000 

— 

House  Duty 

370,000 

360,000 

10,000 

— 

Property  and  Income  Tax  {includin" 

Super-Tax)          

67,907,000 

52.^93,000 

15.514.oro 

— 

Excess  Profits  Duties,  &c. 

148945.0  0 

79,82'^,'  00 

69,117,000 

. — 

Land  Valuw  Duties 

309,000 

151,000 

158,000 

— 

Postal  S.  rvice         

16,801.000 

l6,SO0,n00 

300,000 

— 

Telegraph  Service 

2,600,000 

2,500,000 

100,000 

— 

Telephone  Service           

4,700.000 

4,600,000 

100,000 

— 

Crown  Lands          

4/^0,000 

470.000 

— 

10,000 

Receipts  from  Sundry  Loans,  &c.      . . 

1,719.013 

4,822,145 

— 

3,103,132 

Miscellaneous        

(6,639,290 

11,749,466 

34,889.824 

400,650303293,140611 1 

123.908824 

16.^99,132 

.^ 

/iO7.509,692 

Nett  !■  crease. 

II.— AN  ACCOUNT  showing  the  RECEIPTS  into  and  ISSUES  ont 
of  the  EXCiEQUEK  in  the  period  ending  Dec.  31.  1917,  as 
compared  with  the  corresponding  period  of  the  i  receding  year 


Period 

Period 

ending 

ending 

RECEIPTS. 

Dec.  31, 

Dec.  31, 

1017. 

1916. 

bAI.ANCEb  IP.  l^XCMEyubK  ON  APKiL  I  ; — 

£ 

£ 

Bank  of  EnxlanU 

25,209.947 
1,225.912 

25,111,065 
463,941 

Bank  of  Ireland        

26.435,859 

25.575,ot-6 

Revenue,  as  shown  in  Account  I 

,. 

400,650,303 

293,140,6  I 

Advancks  Repaid— 

1,670,000 

2,&50,COO 

Intertst    on    Kxchequer    Bonds    under 

the 

Capit  .1  Kxpendiiure  (Monrv)  Act,  1904 

i6g,8i8 

— 

Money  Kaiskd  by  t  reati  n  of  Debt— 

Undi  r  the  Ttltgiaph  (Money)  Act,  1913 

100,000 

210,000 

Un.ier  ihe  Pos   Otfice  (London)  Railway 

Act, 

Und  r  the  Military  Wo  ks  Acts,  1897  to  1903. , 

8,824 

Under  ihe  Public  Buildings    Expenses 

Act, 

Under  the  Housing  Act,  1914 

394,500 

74, too 

By  Ir-asury  Bills  tor  Supply 

2,031,271,000 

1,708,380,000 

By     Exchequer    Bonds    under   the    Capital 

Expenditure  (Mi  ney)  Act,  19  4 

— 

3,087,600 

By     i-xcheijuer    Bonds    under    the    Cunard 

Agreement  (Money)  Act,  1904  .. 

1,300,000 



By  4J  per  CenK  W^r  Loan,  (925-1945   , . 

— 

424 

By  5  per  Cent.  Exchequt  r  Boi  ds,  1919 

— 

34,222,(00 

By  5  per  Cent.  Kxchi  quer  Bonds,  1920. . 

— 

84,MO,,69 

By  5  per  Cent.  Exch'  quer  Bods,  1921 

— 

62,464,000 

By  5  per  Cent.  Exchequer  lionds,  1922. . 

8?, 209,400 

— 

By  6  psr  Cent.  Exchequer  Bonds,  1920. . 

— 

159,2  4,000 

By  War  Expei  diiure  Certiticales 

— 

29,856,910 

By  Wa'-  Savings  Certificates 

30.600,000 

40,250,000 

By  0  her  Debt  creaied  un^ier  the  War  Loan 

556.870,296 

194,117,751 

By  4  per  Cei.t.  War  Loa^,  1929-1942,  and 

5  per 

Ce^nt.  War  Loan,  1923-1947 

166,913,580 

— 

By  National  War  Bonds 

— 

Cunard  Loan— 

Repayment  on  "ccount  of  Principal 

130,000 

130,000 

Amounts  Iemporarily  Borrowed— 

On  the  Credit  of  Ways  and  Means— 

By  Treasury  Bills 



838,103,500 

228,053,000 

♦  Excluding    sales    through    Joint    Stock 
Private  Banks  not  yet  brought  to  account. 

and 

£ 

4.332,750,256 

3,210,933,185 

issues- 


Expenditure— 

Perma  ent  Charge  of  Debt 

Interest,  &c.,  on  War  Debt 

Payments  to  Local  Taxation  Accounts,  &c. 

Other  Consolidated  Fund  Services 

Supply  Services 

Total  Expenditure  chargeable  against  Revenue 
Advances — 

Bullion         

Interest  on  Exchequer  Bonds  under  the  Capital 

Expenditure  (Money)  Act,  1904 

Issues  to  meet  Capital  Expenditure— 
L  nder  ihe  Telegraph  (Mont-y)  Act,  :9i3 
Under  the  Post  Office  (London)  RailA'ay  Act,  1913. 
Under  the  Military  Works  Acts,  1897  to  1903 
Under  the  Hublic  Build  ng^  Expenses  Act,  1903. . 

Under  the  Hotising  Act,  1914 

Redemption  of  Unfunded  Debt — 

Trear^ury  Bills  for  Supply  

Exchequer  Bond^  under  the  Capital  Expenditure 

(.Money)  Act,  1904        

Exchequer  Bonds  under  the  Cunard  Agreement 

(Money)  Ac,  1904        

War  Lo^ns,  Exchequer  Bonds,  &c.,  under  Sec- 
tion J4  of  the  Finani-e  .\ct,  1917 

Other  Debt  under  the  War  Loan  Acts,  1914  to  1917 
Depreciation  Fund — 

Under  ihe  Finance  Act,  1917 

Old  Sinking  Fund,  1907-8— 

Issued  under  Section  9  of  the  Finance  Act,  igoS. . 
Old  Sinking  Fund,  ^910-11 — 

Issued  uncier  the  Fin  ince  Act,  igii  : — 

Section  16  (i)  (6)  

Old  Sinking  Funds,  191 1-12  and  1913-14— 

Issued  under   the    Anglo-Persian  Oil    Company 

(Acquisition  of  Capital)  Act,  1914 

Cunard  Loan  Repayments  — 

Issued  to  reduce  Debt  under  the  Cunard  Agree- 
ment iM^ney)  Act,  1904 
Temporary  Advances  Repaid — 
Advances  on  the  Credit  of  Ways  and  Means— 

Treasury  Bills        

Other  Advances 


Balances  in  Exchequer- 
Bank  of  England 
Bauk  of  Ireland.. 


1917. 
Dec.  31. 

£ 

I5,oo5,oc2 
589,021 


1916. 
Dec.  31. 

£ 
16,342,735 

544,765 


Period 

ending 

Dec.  31, 

1917. 


14,664,057 

I  I44.57«,657 

6,517,664 

1,270,259 

1,862,404,425 


2,029,435,062 

i,9«o,ooo 

169,818 


100,000 
68,000 


3P4,5«o 
1,437,270,000 


6,832,597 
35,218,056 

26,490,200 


130,000 

776,849,000 
4>3i7,i56,233 


15,594.023 


Treasury,  Dec.  31,  1917. 


•1.332.750.256 


Period 
en-iing 
Dec.  31, 
1916. 


£ 

15,644,226 

98,058,636 

6,438,012 

1,465.669 

1,444,312,702 


1,565.919.245 

2,880,000 

91,370 

210,000 

160,000 

U,o«S 

8,000 

73.9f'0 

i,i89,052,roo 

3,087,600 


355,415 
9.651,957 


69,000 


:3»i6o 


130,000 


315,253,000 

106,793,000 


3,194,045,685 


16,887,500 


3,210,933.185 


We 


In 


one 


Must    Not    Forsake    Russia. 

of  the  Prime  Minister's  recent  speeches    he 


seemed  to  indicate  that  the  Government  is  disposed  to 
abandon  Russia  to  her  fate.  She  has  deserted  us,  and 
therefore  must  be  left  to  perish.  These  were  not  Mr. 
Lloyd  George's  exact  words,  but  that  was  the  meaning 
they  seemed  to  us  to  bear,  and  we  hof>e  we  are  wrong 
in  the  inference,  for  we  cannot  abandon  Russia.  To  do 
so  would  be  ungrateful  and  mean,  to  begin  with,  and. 


Zbc  Jnvestora'  IReview. 


January-  5,  1918. 


secondly,  it  would  be  short-sighted  to  an  extraordiinary 
degree.  How  much  did  the  operations  of  Russia  in 
1914  contribute  to  the  triumph  of  France  in  the  battles 
of  the  Marne?  Did  not  Russia  continue  during  191 5 
and  the  first  half  of  1916  to  draw  off  all  the  A.us.tro- 
Hungarian  and  a  considerable  proportion  of  the  German 
forces,  to  our  considerable  relief  dn  the  West?  There 
ought  to  be  some  gratitude  for  these  services,  and  it  was 
not  the  fault  of  the  Russian  people  that  the  armies  of 
the  Tsar  failed  us  when  they  did. 

But,  even  supposing  Russia  had  not  given  so  much 
help  to  destroy  the  Prussian  monster  in  the  early  days 
of  the  war,  it  would  be  i.n  a  high  degree  impolitic  to 
turn  our  backs  upon  the  Russian  people  now.  Probably 
there  are  no  leaders  in  Russia  at  the  moment  visible 
whom  we  dare  unreservedly  support,  and  it  may  be 
seemingly  impossible  to  help  the  robbed  and  misled 
people  'towards  better  government,  but,  at  lea.st,  we  can 
hold  our  tongues  and  watch  the  opportunity,  ready  to 
render  prompt  assistance  to  tho.se  who  mu.st  one  of  these 
days  emerge  out  of  the  welter  of  confusion  and  prove 
strong  enough  to  .stop  the  TOt.  We.  sihould  stand  ready 
to  afford  quiet  but  effective  support  to  whatever  centre 
of  real  Government  may  become  visible.  The  dispo- 
s-itioji  is  to  believe  here  that  the  whole  of  this  Bolshevik 
activity  is  German  inspired,  and  therefore  something  to 
be  .scorned  and  put  away  out  of  .sig'ht,  but  we  do  not 
share  that  view  very  confidently.  It  bears  a  "  made  in 
Germany  "  look.  Doubtless  German  influences  were 
all-powerful  at  the  Court  of  the  Tsar  up  to  the  time  of 
his  deposition,  and  probably  German  emis.saries,  acting 
in  conjunction  with  the  disipossessed  swarm  of  Prussian- 
ised Russian  bureaucrats,  to-day  among  .the  unem- 
ployed, are  doing  their  utmost  to  prevent  the  formation 
of  a  strong  constitutional  Government,  partly  for  pur- 
jK>ses  of  revenge  and  plunder,  and  partly  to  avert 
punishment  for  themselves.  But,  supjx>.sing  this  true, 
it  affords  the  more  reason  why  we  .should  act  with  cir- 
cumspection and  maintain  our  friendliness  with  the 
Russian  peoples,  refusing  to  be  beguiled. 

It  cannot,  moreover,  l5c  to  the  interests  of  Prussian 
military  autocracy  that  ideas  subversive  of  .all  order, 
inimcical  to  every  form  of  property,  should  be  allowed 
to  filter  through  "  the  fatherland,"  illustrated  by  acts 
of  robbery  and  violence.  It  is  the  distress  of  Germany, 
we  may  be  sure,  which  has  led  to  the  hobnobbing  of 
Berlin  experts  in  working  the  political  confidence  trick 
with  visionaries  like  Lenin  and  Trotsky,  and  that  is 
surely  for  us  an  encouraging  fact.  The  ' '  peace  negotia- 
tions "  are  a  clumsily  devised  farce,  played  by  beings  so 
ecstatically  convinced  of  their  own  superior  qualities  as 
to  easily  be  fooled.  To  a  certain  extent  they  can  mis- 
lead the  Russians  who  are  too  unsophisticated  to  per- 
ceive the  snare.  When  it  begins  to  dawn  on  the 
Slavs  that  Germaniy  means  to  lop  off  some  of  Russia's 
provinces,  to  retain  the  mastery  over  Poland  and 
Galicia,  to  stretch  forth  the  claw  over  Bessarabia,  and 
to  claim  the  Black  Sea  as  a  Teutonic  lake,  Russia  is 
likely  to  begin  to  come  to  her.self.  Already  in  Ukrainia 
there  are  symptoms  of  a  rallying  towards  the  Entente, 
and  it  is  not  at  all  improbable  that  Central  and  Southern 
Russia  may  again  be  our  Allies  at  no  distant  day. 
Therefore,  although  it  may  be  quite  right  that  military 
supplies  should  be  stoppved — enormous  quanitities  of 
them,  British  and  American,  but  particularly  British, 
have  been  landed  in  Archangel  and  never  forwarded  to 
the  armies — 'but  in  other  ways  prompt  help  should  be 
given  whenever  possible. 

For  what  would  be  the  consequence  if  the  alarmists 
here  about  German  diplomacy  and  intrigue  were  really 
to  prove  true  prophets,  and  were  Ru-ssia  finally  to  pass 
into  the  hands  of  the  intriguing  Semito-Pnissian  trader 
and  bull)  ?  One  re.-ult  would  be  sure  r  the  trade  of 
Britain  and  France  with  Russia  would  probably  be 
blocked,  if  not  destroyed.  The  Baltic  would  become  a 
Prussian  lake,  and  were  the  Black  Sea  opened  by  the 
dislodgment  of  the  incapable  Turk,  we  may  be  sure 
that  trouble  over  the  "  freedom  of  the  seas  "  in  the 
navigation  of  the  Bosphorus  and  the  D.-irda-^elles  would 
arise  continually  between  the  Mediterr-ine-n  and  Wes- 
tern  Powers   and   the  all-demanding   and   all-coveting 


Prussian.  That  is  doubtless  one  danger  that  our 
alarmists  at  German  proceedings  think  they  t^e  ahead, 
the  more  intelligent  among  them  at  least,  and  we  do 
not  know  that  they  are  very  far  wrong. 

But  in  that  case  we  must  vigilantly  see  to  it  that  no 
such  position  of  vantage  is  opened  to  the  defeated 
Boche.  Shut  in  upon  himself,  as  all  savage  beasts 
must  be,  he  will  have  no  capital  when  this  war  ends  to 
help  Russia  with  any  more  than  to  enable  him  to  over- 
run Asia  Minor.  But  given  time  he  may  be  able  to 
create  capital,  and  even  as  a  bankrupt  it  will  always 
be  open  to  him  to  make  him.self  a  nui-sance  and  a  danger. 
Their  true  safeguard  is  for  the  Allies  to  hold  fast  by  the 
ideal  peace  settlement  which  has  been  present  in  the 
minds  of  enlightened  students  of  Kuro|>ean  politics 
from  the  first — to  surround  the  Straits  with  free  p>eoples 
and  to  put  them  under  International  protection.  As 
for  Constantinople,  should  Russia  not  be  strong 
enough  to  be  its  -custodian,  it  also  must  be 
placed  in  the  keeping  of  the  Great  Powers, 
who  would  be  able  to  guarantee  perfect  free- 
dom of  commerce  to  Russian,  Rumanian,  Bulgar, 
Serb,  Armenian,  Anatolian,  Greek — aye,  and  even  to 
the  Turk.  To  fulfil  this  duty  effectively  means,  first 
of  all,  that  the  Prus.sian  enemy  must  be  destroyed  as  a 
military  Power,  and  we  cannot  effect  his  destruction 
without  the  help  of  Russia,  active  or  passive.  Is  it  not 
possible  for  us  to  reach  the  Ukrainiai,  and  Cossack 
leaders,  to  put  our.selves  in  communication  with  the 
new-  Independent  Republic  started  in  Siberia,  and  also 
to  keep  in  touch  with  the  best  and  most  unselfishly 
patriotic  men  amongst  the  Russians  of  the  North,  now 
harried,  robbed,  assassinated,  and  in  all  ways  op- 
pressed by  the  Bolshevik  fury?  We  should  at  least  be 
iible  to  support  Ukrainia  in  its  refusal  to  surrender 
Russian  grain  to  the  Prussians,  who  are  now  feverishly 
manoeuvring  to  lay  hold  of  food  supplies. 

As  always,  finance  will  play  an  ultimately  determin- 
ing part  in  bringing  the  Bolshevik  tyranny  to  an  end 
in  Russia.  One  certain  effect  of  any  kind  of  tyranny 
is  to  prevent  the  creation  of  wealth.  The  people  who 
cannot  work,  or  whom  nobody  can  pay  for  work  done, 
are  even  now  at  starvation  level  for  want  of  money.  No 
taxes  are  paid,  or  collectable ;  the  Bolshevik  "  conscrip- 
tion of  wealth  "  has  dried  up  the  flow  of  them  at  the 
source.  And  as  tyranny  is  always  extravagant,  those 
wiho  have  seized  power  must  steal  in  order  to  maintain 
themselves.  That  is  why  the  present  revolutionary  squad 
that  has  parts  of  Russia  by  the  throat  has  annexed 
all  the  money  in  all  the  banks,  and  why  they  con- 
fiscate everything  they  can  get  at.  But  that  will  not 
help  them  long.  Some  interesting  figures  have  been 
given  in  the  Times  by  its  late  Petrograd  correspondent 
illustrative  of  the  position  into  which  Russian  finance 
has  drifted  in  the  hands  of  its  present  irresfxjnsible 
despoilers.  The  pay  roll  of  the  Petrograd  Soviet  alone, 
he  tells  us,  was  costing  ;^7o,ooo  a  month,  or  ;£r840,ooo 
per  annum,  and  the  extra  pay,  &c.,  given  to  the 
soldiers  added  ;^i, 100, 000, 000  a  year  to  the  expendi- 
ture under  the  Kerensky  administration.  By  August 
last  Russia  had  spent  altogether  ;^4,900,ooo,ooo  on 
the  war,  and  ;^3, 500,000,000  of  it  had  been  raised  by 
loans  to  which  Great  Britain  contributed  ;^50o,ooo,ooo. 
The  rest  w^as  paper  money.  In  July  last  the  Treasury 
contained  unpaid  bills  to  the  amount  of 
;^i, 400, 000, 000,  and  there  was  no  ca.sh.  The  issue  of 
paper  money  during  the  war  months  of  1914  had 
averaged  ;^2i, 900,000  per  month.  In  1915  it  rose  to 
;^22. 300,000,  and  in  igi6  to  ;^2g, 000,000  a  month  ;  but 
during  the  revolutionary  months  of  March  to  Augfust 
this  year  it  swelled  out  to  a  monthly  total  of 
;^83, 200,000,  .so  that  the  revolution  has  cost  Russia 
in  actual  Treasurv  disbursement  of  paper  currency  no 
less  than  ;^378, 000,000  during  the  first  seven  months 
of  chaotic  misrule.  And  this  does  not  include  the 
other  and  immeasurablv  greater  losses  resulting  from 
the  paralvsis  of  industry  and  agriculture,  and  the  de- 
struction of  public  and  private  property.  "  If  we 
reckon,"  eavs  the  correspondent,  "  onlv  half  the 
annual  value  of   Russia's   agricultural  and    industrial 


January  5,  1918. 


Zbc  Jnvestors'  TRevlew. 


production  as  having  bpen  sacrificed,  the  sum  runs  into 
something  like  ;^"8oo,ooo,ooo."  It  is  not  the  amount 
that  is  so  much  a  matter  of  consequence  as  the  fact 
that  industrial  and  agricultural  paralysis  has  overtaken 
the  country  as  a  consequence  of  the  revolution,  and  that 
along  with  this  the  extravagance  of  the  irresponsible 
men  who  have  grabbed  power  is  rapidly  bringing  the 
whole  country  to  a  standstill.  In  its  extremity  the 
Germans  thinlc  they  see  their  chance  to  enter  the  land 
and  subdue  it  to  serve  their  now  dead  industries,  and 
help  them  to  prevail  over  the  world  ostracism  with 
which  they  begin  to  see  themselves  threatened.  Arc 
we  going  to  leave  Germany  a  clear  field?  If  not,  we 
must  stand  fast  by  Russia  in  her  extremity,  enduring- 
much,  helping  frankly  and  unselfishly  when  and  where 
we  can. 


By-the-Way  War  Notes. 

The  able  journalist  responsible  for  "  A  Londoner's 
Diary  "  in  the  Evening  Standard  has  been  girding-  this 
week  at  the  Foreign  Office  clerk  for  his  pessimism.  His 
descriptions  would  lead  one  to  suppose  that  the  sooner 
individuals  of  the  type  swarming  in  that  office  trans- 
ferred their  services  to  William  Hohenzollern  the  better 
it  would  be  for  the  country.  We  do  not  think  it  is  quite 
so  bad  as  that,  but,  unquestionably,  the  New  Year  has 
come  in  amid  a  most  depressing  feeling  of  gloom  ^^  hicli 
manifests  itself  in  many  quarters  besides  the  Foreign 
Office  and  other  departments  of  the  Civil  Service.  The 
"grousing"  is  as  bad  in  Fleet  Street  as  anywhere  in 
the  kingdom,  and  many  journalists  do  not  hesitate  to 
lay  the  blame  for  it  all  upon  the  Prime  Minister. 
"  Look,"  they  say,  "at  his  bounce  about  our  masterv 
over  the  submarines.  Has  not  that  coloured  our  feel- 
ings with  regard  to  the  destruction  of  our  ships  ever 
since  with  a  deepening  shade  of  hopelessness?  The  war 
looks  like  going  on  and  on  for  years."  There  is  truth, 
no  doubt,  behind  the  grumble,  for  Mr.  Lloyd  George  is 
too  much  a  man  of  swift  impulses  to  be  fully  relied  ujxjn 
as  a  safe  guide  to  follow  at  all  times ;  but  he  is  not 
responsible  for  the  depression  fashionable  at  the  New- 
Year  nearly  so  much  as  the  condition  of  Russia.  The 
rapprochement  between  Russe  and  Teuton  has  had  a 
quite  terrifying  effect  on  the  minds  of  the  unreflectivc 
amongst  us.  "  Germany  is  going  to  arrange  a  separate 
peace,  Germany  means  to  lay  hold  of  the  chahftels  o' 
Russian  commerce,  Germany  is  trying  to  avenge  her 
defeat  in  the  West  by  enslaving  Russia,"  and  so  on, 
and  so  on. 

But' why  should  we  be  dismayed  over  Germany's 
apparent  success  in  carrying  everything  before  her  by 
diplomacy  in  dealing  with  Russia?  Her  efforts  in  that 
line  ha-ve  been  so  maladroit  and  pig-headedly  offensive 
hitherto  as  to  make  us  quite  sceptical  of  her  permanent 
success  in  Russia.  Fevered  visions  of  a  world  domi- 
nion built  eastward,  of  a  rejuvenated  Turanian  State 
for  the  miserable  Turk,  and  so  forth,  are  but  the  mad 
ravings  of  a  foe  baffled  everywhere,  beaten  and  rapidly 
nearing  despair.  Under  Prussian  guidance  the  German 
serf,  whether  trader.  University  lackey,  or  philosophical 
diplomat,  is  too  greedy  and  too  impregnably  self-con- 
ceited to  be  successful  in  bargaining.  Already  accord- 
ingly the  Lenin-Trotsky  men  temporarily  on  top  in 
Petrograd,  and  holding  in  a  sense  the  destiny  of  Russia 
in  their  hands,  are  said  to  be  breaking  away.  German 
wily  esurience  has  over-reached  itself,  and  von 
Kiihlmann  would  seem  to  be  almost  afraid  of  his  own 
gulls.  What  may  be  the  truth  about  the  "  break  "  in  so- 
called  peace  negotiations  we  cannot  say ;  but  whether 
they  are  broken  off  now  or  resumed  we  feel  pretty  con- 
fident that  they  will  not  end  in  success  for  Berlin.  The 
Russian  [peasant  may  be  ignorant,  but  he  has  a  faith 
and  a  soul  and  will  not  be  easily  ensnared.  We  have 
but  to  behave  prudently,  and  to  deal  circumspectly  with 
the  Russian  crisis,  with  the  men  it  throws  to  the  top, 
to  be  successful  in  conjuring  the  Prussian  danger  away 
there  likewise.  That  does  not  mean  that  we  should  fold 
our  hands,  lift  our  eyes,  and  benignly  smile. 

But  the  existence  of  the  Russian  peace  danger  has 
given  a  new  impulse  to  the  shouting  for  "  a  statement 
of  the  war  aims  of  the  .Allies."  All  kinds  of  publicists 
are  demanding  this,   and  surely  they  are  behaving  in- 


discreetly in  doing  .so.  From  the  very  first  our  war 
aims  have  been  plain-  enough,  and  in  principle  have 
been  often  plainly  stated  :  No  annexations,  no  coercion, 
liberty  for  the  oppressed  nationalities,  the  abolition  of 
the  military  tyranny  of  the  Prussian,  the  cleansing  of 
the  seas  from  piracy,  the  extinction  of  despotic 
dominance  everywhere.  What  more  is  wanted? 
.VIl  the  nations  engaged  on  the  side  of  the 
.Vllies  know  these  purposes  and  so  do  most  Germans, 
or  could  do  if  they  liked.  What  need',  then, 
is  there  to  belabour  Allied  Governments  to  restate 
and  again  restate  in  detail  the  objects  for  which 
they  fight?  It  may  be  expedient,  as  circumstances  arise 
and  vary,  occasionally  to  put  forth  declarations  outlin- 
ing our  purpose  in  the  war^  but  it  is  impossible  at  this 
stage  to  give  more  than  outlines  because  the  condition 
and  aspirations  of  the  suppressed  populations  in  Russia, 
.\ustria,  and  Hungary,  and  even  in  Germany  itself  and 
in  the  Balkan  Peninsula  and  Asia  Minor  cannot  be 
arranged  in  detail  until  all  the  facts  are  known.  These 
shouters  of  ours  would  apparently  have  us  to  fix  right 
off  the  boundaries  of  Poland  and  Bohemia,  the  size  of 
Rumania  and  Serbia,  the  overlordship  of  the  Adriatic, 
and  the  nature  of  the  new  forms  of  self-government  to 
be  established  in  Asia  Minor,  with  a  multitude  of  other 
details  involving  the  most  complicated  investigation 
and  many  months  of  time.  Why  cannot  the  public  dis- 
play a  little  more  calmness  and  self-respect?  We  feel 
sure  it  would  if  it  knew  how. 

Let  us  turn  to  the  armies  in  the  field  and  be  comforted. 
We  see  there  the  sons  of  the  wealthiest  and  greatest — a 
Rothschild  and  a  Primrose — fighting  and  heroically 
dying  side  by  side  with  the  poorest  private  soldier,  and 
to  despair  of  the  future  of  this  British  people  and  Em- 
pire, as  we  should  be  prone  to  do  if  we  merely  listened  to 
the  talk  in  drawing-rooms,  clubs,  newspaper  offices,  and 
the  lobbies  of  Parliament,  becomes  impossible.  Croak 
on,  ye  misery-wooing  doubters  ;  we  hope  and  believe. 

Have  our  armies  done  so  very  badly  in  1917  that  we 
should  croak?  Is  that  impudent  boast  of  the  chief 
assassin  in  his  New  Year's  message  to  his  army 
and  navy  true — that  "  the  gigantic  battles  which 
raged  from  the  spring  to  the  autumn  on  Belgian 
and  French  soil  have  been  decided  in  favour 
'of  your  glorious  arms"?  No,  it  is  a  lie 
that  betrays  the  creature's  extremity.  The  facts  tell 
quite  another  story;  ,uid  when  we  bear  in  mind  that  it  i.s 
a  pullulent  nation  Of  slave-souled  people  which  is  being 
deliberately  sacrificed  to  cover  up  the  catastrophe  of 
junker  baffled  ambitions,  it  is  impossible  to  avoid  the 
conclusion  that  we  are  doing  well.  Long  ago,  near  the 
beginning  of  the  war,  we  wrote  that  "  we  had  no  choice 
but  to  go  on  killing  and  being  killed,  killing  especially, 
until  all  power  to  go  on  committing  crimes  had  been 
driven  out  of  the  Prussian  and  his  dupes  for  ever." 
And  it  was  added — towards  the  close  of  February,  1915 
—that  the  "  task  of  rooting  out  Prussianism  might  in- 
volve the  death  of  from  seven  to  ten  millions  of  German 
manhood  through  slaughter  and  disease  "  before  it  could 
be  accomplished,  and  to-day  we  should  double  these 
numbers.  Have  we  not  teen  successful  in  carrying  oiit 
this  slaughter?  It  is  a  slower  business  than  anybody  ori- 
ginally estimated,  but  it  is  being  done  day  and  night  on 
many  fronts,  while  inside  the  empires  famine  and  disease 
are  carrying  on  the  work.  When  we  consider  that  we 
came  up  against  an  immense,  perfectly  organised 
murder  machine  in  the  Prus.sian  armies — we  a  people 
unprepared  to  war  on  the  all-devouring  scale — and  that 
we  have  held  the  mighty  armies  of  this  military  organi- 
sation and  beaten  them  back  continually  for  nigh  three 
and  a-half  years,  surely  the  record  should  be  enough  to 
inspire  us  all  with  coi-ifidence  and  courage  to  go  on  to 
the  end,  until  our  task  of  destroying  a  people  become  a 
pestilence  amongst  civilised  races  has  been  thoroughly 
performed.  M.  Tardieu,  the  French  Commissioner  in 
the  United  States,  has  been  telling  the  peoole  there  that 
the  war  will  be  over  in  six  months.  We  make  no  guess 
as  to  the  date,  but  remain  as  confident  as  ever  that  the 
goal  is  in  sight,  and  that  aim  and  purpose  of  the  fight- 
ing is  being  surely  attained.  William  the  Mad  and  his 
generals  are  making  that  sure. 

Look  how  the  Austrian  plunge  into  Italy  last  October 


lO 


Hbe  3uvestoi'8'  IRcvicw. 


January  5,  igi8. 


is  working  for  the  destruction  of  the  Mabsburg  power. 
It  was  a  successful  razzia  at  the  beginning  because  or- 
ganised with  the  usual  <liscip!ined  Teuloi.ic  skill  and 
cunning.  So  a  charge  of  wild  boars  or  wolves  often  is. 
But  the  success  was  only  the  preliminary  to  a  check,  or 
hold  up,  leading  to  a  defeat  that  may  linish  the  Habs- 
burg  fraud  for  good.  The  Italian  troops  with  their 
French  and  British  Allies  are  now  pounding  the  miser- 
able wretches  compelled  to  obey  Charles  VI. 's  generals, 
and  driving  them  towards  utter  dii^onititure.  Are  we 
not  encouraged  to  indulge  the  hope  that  by  Ihe  time  the 
winter  ends  there  will  be  little  fighting  energy  left  in 
the  tyrants'  ill-hung  together  dual  empire? 

And  i.s  it  any  belter  with  the  HolienzoUern  swarms, 
with  their  "  shining  swords  "  and  William's  "  God  "? 
Where  and  when  has  victory  been  found  resting  on  their 
eagles?  Not  in  Flanders  or  France,  not  in  Palestine  or 
Mesopotamia,  not  in  the  Balkans  or  against  Rumania, 
not  among  the  Venetian  mountains  or  in  far-away  Cen- 
tral Africa.  Only  against  the  demoralised  Russians 
have  the  Germans  been  victorious,  because  they  have 
decoyed  this  ignorant,  dream-impelled  people  into  throw- 
ing their  weapons  away.  A  noble  feat  that, 
surely.  Well  may  William  Hohenzollern  bawl 
to  his  army  and  navy,  "  forward  with  God  to 
fresh  deeds  and  fresh  victories,"  for  his  God  is  openly 
and  indubitably  the  father  of  lies.  But  we  hope  he 
will  continue  to  delude  his  own  subjects,  and  so  lead 
them  on  towards  extermination  ;  and  we  wish  him  and 
them  all  enjoyment  of  the  God  they  say  they  follow, 
for  it  is  not  a  God  of  justice  and  righteousness,  but 
something  as  exclusively  German  as  their  kultur. 
"We  should  cultivate  hatred  of  all  Germans,"  some 
of  our  romance  writers  and  others  have  been  counsel- 
ling. That  would  be  degrading,  and  is  quite  unneces- 
sary. The  Germans  are  no  more  worthy  of  active 
"hate"  than  a  nest  of  vipers;  they  only  excite  the 
same  kind  of  active  effort  to  destroy  them  wherever 
found,  and  destroyed  they  will  be. 


The  Bankers'  Clearing  House  Returns 

Somewhat  unusual  interest  attaches  to  the  records 
of  the  Bankers'  Clearing  House  overturn  for  1917. 
We  are  unable  to  print  the  whole  report,  as  we  have 
been  accustomed  to  do  in  past  years,  because  of 
printers'  and  paper  merchants'  restrictions,  but  the 
report  of  Mr.  Philip  W.  Matthews,  the  chief  inspector, 
is  so  important  that  a  summary  of  it  must  find  a  place. 
First  of  all,  however,  take  the  following  table,  intro- 
duced by  Mr.  R.  Holland  Martin,  the  hon.secretary  to 
the  Clearing  House  : — 


Grand  total   

Town  clearing  total.. 
Metropolitan  clearing 

total     

Country  cheque  clear 

in>»  total 


1917. 


ig.izi.igfi.ooo 
'51699,528,000 

1,177,478,000 


iqi6. 


15.275.046. 000 
12,328,568,000 

1,074,027,000 


2.244.100,000  I  I.S7;,4iii,ooo 


Incrpase. 


3  846  150.000 
3,370,960,000 

103  451,000 


^•71.7^9.000 

Here  we  see  that  the  total  clearings  for  1917  aggre- 
gate  ;6'i9. 121.196,000,  an  increase  of  ;^3,846, 150,000 
upon  1916.  There  were  modest  increases  in  both  the 
metropolitan^  section  of  the  overturn  and  in  the  country 
clearing,  so  that  from  all  parts  of  the  country  the 
testimony  would  seem  to  be  that  business  has  been  good 
and  expanding.  It  has  not,  however,  been  the  ordinary 
commerce  of  the  country  which  has  produced  these 
increases.  They  have  chiefly  come  from  the  war 
necessities  of  the  Government.  Indirect  proof  that 
this  is  true  is  furnished  by  the  fact  that  the  first 
quarter  of  last  year  gave  the  largest  increase,  viz., 
£1,462,458,000.  In  the  second  quarter  this  increase 
fell  to  ;^i, 009,496,000,  and  in  the  third  quarter  it  was 
only  ;^633,8 10,000.  A  slight  improvement  occurred  in 
the  fourth  quarter,  which  was  ;^74o,4i3,ooo  larger 
than  that  of  the  same  .segment  of  1916,  but  the  issue 
of  the  great  War  Loan  in  January  last  swelled  out  the 
total  of  the  first  quarter  of  the  year,  and  war  finance 
throughout  the  remaining  nine  months. has  been  the 
principal,  though  not  the  sole^  cause  of  the  various 
degrees  of  expansion  shown  in  the  later  quarters  of  the 
year. 

In  other  directions  than  mere  borrowing  the  action 


of  the  Government  has  also  told  upon  the  figures  of 
the  Bankers'  Clearing  liouse  turnover,  because  me  high 
prices  prevailing  for  all  commodities  has  inevitably 
swollen  the  credit  instruments  brought  into  existence 
in  the  course  of  their  passage  from  producer  to  the 
ultimate  consumer.  But  it  is  impossible  to  analyse  and 
distinguish  one  class  of  influences  from  the  other.  All 
we  desire  to  impress  upon  readers  is  to  avoid  drawing 
inferences  of  too  sanguine  a  description  from  such 
magnificent  totals  as  Mr.  Matthews'  luminous  report 
brings  together.  Our  aggregate  trade  remains 
wonderfully  good,  but  it  is  not  as  great  or  as  expanding 
as  the  Clearing  House  records  might  lead  us  to 
suppose. 

At  the  same  time,  every  part  of  the  country  shows 
up  well,  and  although  the  metropolitan  clearing  has  in- 
creased on  the  year  by  a  mere  ;^i03, 451,000,  it  shows 
that,  quite  apart  from  finance,  an  expanding  use  of 
banking  credit  has  taken  place.  The  country  chequt 
clearing,  too,  went  up  last  year  by  ;£^37i,739>ooo,  and 
the  expansion  is  continuous,  thanks  probably  to  the  rise 
in  prices.  Mr.  Philip  W.  Matthews  has  compiled  the 
following  little  table  to  show  by  quinquennial  figures 
the  course  of  the  expansion  in  the  employment  of  bank- 
ing credits  since  the  Clearing  House  was  instituted 
.<ixty  years  ago,  and  this  table  is  also  well  worth  repro- 
ducing : — 


Boih  Ye  rs 

T  tai  for 

Increase  or 

Per 

Included. 

Five  Years. 

D- crease. 

Cent. 

1868  to  1872 

21,700,257,000 

— 

— 

1873  to  1877 

27,699,376.000 

+  5.99i.o?9.ooo 

+    27.5 

1878  to  ib82 

28.250.838,000 

+       551,462.000 

+      «.9 

1883  to  1887 

29.218,052,000 

+■      967,214,000 

+      34 

1888  to  1892 

35.691,054,000 

+    6,473,002,000 

+    22.1 

1893  to  18  ,7 

35  474.255.000 

—      216,799000 

—      0.6 

1898  to  1902 

45  797.64 1. oto 

+  10.323.386.000 

+    29.1 

1903  to  1907 

58,413,684  000 

+  12,616,043.000 

+    27.5 

1908  to  1912 

70.8bo,3.'i.ooo 

•  12.466.637,000 

+    208 

1913  to  1917 

78.905  419  000 

+    8.025,098  000 

-     II. 3 

It  will  be  seen  that  only  once  in  all  this  period,  viz., 
in  the  quinquennium  1893-1897  was  there  any  recoil, 
and  it  was  so  small  as  not  to  be  worth  counting. 
In  former  years  a  considerable  impulse  was  given  to 
the  utilisation  of  banking  credit  instruments  by  the 
joint-stocking  of  all  kinds  of  enterprises.  In  the  early 
'days  of  the  Clearing  House  operations  the  finance  that 
developed  the  use  of  banking  instruments  originated  in 
the  large  railway  exp.nnsion  and  in  foreign  loans,  but 
since  the  early  years  of  the  last  decade  of  the  nineteenth 
century,  miscellaneous  enterprises  of  all  kinds  have 
been  joint  stocked  and  put  on  the  market,  and  their 
capitalisation  has  represented  enormous  aggregates  of 
capital  which  came  to  be  generated  and  dealt  in  by 
means  of  increasing  masses  of  cheques  and  securities 
upon  which  loans  were  obtainable,  all  helping  to  swell 
the  amount  of  business  annually  passed  through  the 
London  Bankers'  Clearing  House,  which  has,  more- 
over, long  been  the  focus  towards  which  all  kinds  of 
international  money  commitments  have  converged  for 
final  liquidation.  It  may  be  interesting  to  add  here 
the  combined  totals  of  the  six  provincial  clearings  that 
furnish  the  London  Clearing  House  with  their  weekly 
statements,  viz.,  Birmingham,  Bristol,  Leicester, 
F^iverpool,  Manchester,  and  Newcastle-on-Tvne.  All 
these  added  together  show  the  substantial  increase  of 
:^2 1 3,946,000,  and  the  largest  increase  was  in  the 
fouith  quarter  of  the  year,  ;^75, 918,000.  The  first 
quarter  showed  an  increase  of  ;^46. 766,000,  the  second 
of  ;^47, 164,000,  and  the  third  of  ;^44.098,ooo.  Much 
of  this  was  doubtless  the  product  of  the  enormou<!  in- 
dustrial activity  generated  by  the  war  necessities  of  the 
Government. 

The  effect  of  the  banking  consolidation  which  has 
been  in  progress  during  recent  rears  is  seen  in  the 
gradual  reduction  of  the  membership.  In  186*?  the 
total  number  of  bankers  in  the  Clearing  House  was  25, 
and  5  were  subsequently  added.  At  present  the  num- 
ber is  17,  and  it  will  now  be  reduced  to  11;  by  the 
fusion  of,  first,  the  London  and  South-Western  and 
London  and  Provincial,  and,  sp^ondly,  bv  the  still 
more  massive  absoi-ntion  of  the  LTnion  of  Lon'^on  and 
Smiths  bv  the  National  Provincial  Bank  of  Enclflnd. 
But  the  business  carried  through  daily  has  grown  eon- 


January  5,  1918. 


tibe  3"ve8tor8'  TRevtew. 


II 


tinuously,  and  instead  of  a  ground-floor  accommodat- 
ing 115  clerks,  the  Clearing  House  now  occupies  a 
much  larger  space  with  floor  accommodation  for  448 
clerks,  a  number  soon  to  be  further  increased. 


The    Food    Muddle    and    the 
Government. 

No  one  wishes  to  criticise  Lord  Rhondda  unneces- 
sarily ;  but  surely  Lord  Rhondda,  as  a  business  man 
himself,  should  be  able  to  check  the  vagaries  of  Govern- 
menX  officials  who  appear  to  have  no  conception  of 
how  trade  is  conducted,  whether  at  home  or  abroad. 
Some  extraordinary  revelations  of  this  amazing  official 
ignorance  are  contained  in  the  Report  lately  issued  by 
the  special  sub-committee  on  th<^;  Government  Control 
of  Trade  appointed  by  the  Commercial  Committee  of 
the  House  of  Commons.  Mr.  T.  Lough,  M.P.,  acted 
as  Chairman  of  the  Sub-Committee,  which  included 
members  of  Parliament  of  both  political  persuasions. 
A  striking  light  is  thrown  on  many  of  those  unfortu- 
nate shortages  of  different  vital  commodities  from 
which  the  nation  is  suffering ;  and  it  is  difficult  to  feel 
surprise  that  immediately  a  "controlling"  regulation 
is  isBued,  whatever  be  its  object,  the  commodity  in 
question,  originally  scarce,  seems  to  disappear  com- 
pletely from  the  market. 

The  Sub-Committee  state  that  they  view  with  mis- 
giving the  appointment  of  controllers  of  various 
articles  of  consumption  without  adequate  representation 
of  those  engaged  in  the  trade  to  be  controlled  ;  nor  can 
we  be  surprised  at  their  anxiety  when  we  find  the  Mer- 
chants' Committee  of  the  London  Chamber  of  Com- 
merce constrained  to  observe  that  "  Government 
officials  appeared  to  ignore  the  British  merchants,  and 
apparently  did  not  understand  what  the  business  of  a 
merchant  is ;  they  appeared  to  be  unaware  of  the  nature 
of  the  business  carried  on  by  British  merchant  houses 
in  all  parts  of  the  world,  being  apparently  under  the  im- 
pression that  the  business  of  these  merchant  houses  is 
that  of  speculation  and  gambling."  The  Merchants' 
Gommittee  went  on  to  criticise  strongly  the  practice  of 
setting  up  departments  to  control  trade,  largely  staffed 
by  inexperienced  volunteers,  when  merchant  firms 
would  gla-dly  have  placed  their  establishments  at  the  dis- 
posal of  the  Government.  Further,  advisory  com- 
mittees, reluctantly  conceded  by  bureaucratic  depart- 
ments, are  frequeatly  not  at  all  representative. 

Thus,  from  an  interesting  narrative  of  the  "  ups  and 
downs  "  of  the  sugar  market  contained  in  an  appendix, 
we  find  that,  on  the  outbreak  of  the  war,  when  stocks 
were  small,  a  speculative  syndiicate  did  endeavour  to 
buy  them  up ;  whereon  the  Government  rushed  to  the 
rescue  with  a  committee,  no  member  of  which  it  is 
believed  had  had  any  experience  of  the  shipping  of 
sugar  or  of  finance,  freight,  or  insurance,  or  other 
details  of  a  merchant's  business.  Plunging  headlong 
into  the  sugar  business,  the  Committee  in  two  months 
forced  up  the  price  of  Java  sugar  from  12s.  6d.  a  cwt. 
to  20s.  a  cwt. ;  and  then,  when  the  alarmed  refiners 
began  seeking  new  sources  of  supply,  prohibited  the 
import  of  sugar  by  private  firms  altogether.  In  some 
cases,  vessels  actually  loaded  with  sugar  were  forced 
to  discharge  before  sailing. 

Tea,  as  is  well  known,  remained  at  reasonable  prices 
in  this  country,  being  uncontrolled  until  the  end  of 
1916,  bar  the  increased  tax  and  the  increased  cost  of 
freightage.  Then  the  Government  took  over  the  con- 
trol of  s;hipping  and  added  a  further  tax  of  about  3d. 
in  the  lb.  for  the  carriage  of  tea.  Then  came  the  prohi- 
bition of  the  import  of  Java  tea,  which,  as  all  shipping 
was  under  Government  control,  seems  superfluous, 
and  the  effect  of  which  was  to  send  about  ten  million 
pounds  of  tea  to  the  United  States  and  Canada  which 
would  ordinarily  have  come  to  London.  After  this  the 
stock  of  tea  in  the  country  was  apparently  allowed  to 
decline  without  any  Government  official  discovering  the 
fact  until  "  tea  queues  "  began  to  stand  in  the  streets  ! 
While  urging  further  imports,  the  Report  also  points 
out  that,  with  the  tea  duty  at  is.  a  lb.,  to  prohibit 
the  sale  of  tea  at  a  higher  price   than  4s.   a  lb.    was 


simply  to  destroy  the  market  in  choice  teas  altogether. 
Every  household  where  it  was  intended  to  have  a 
Christmas  pudding  was  made  painfully  aware  of  a 
terrible  shortage  of  currants  and  raisins.  This  littk- 
memorandum  by  Mr.  Harry  M.  Isaacs  seems  to  throw 
some  light  on  the  position  : 

"  The  Government  has  taken  over  the  control  of  all 
dealings  in  these  articles ;  it  has  sent  out  a  Commission 
to  Greece  and  a  Commission  to  Spain  for  currants  and 
raisins  respectively.  These  Commissioners  have  been 
gone  some  weeks,  and  from  the  latest  information 
little  or  nothing  of  the  new  crops  has  been 
shipped  to  date.  This  time  last  year  there 
were  about  35,000  tons  of  Greek  currants  here  and 
afloat  and  about  5,000  tons  of  Spanish  raisins.  If 
the  Government  action  has  been  taken  with  a  view  of 
obtaining  supplies  for  our  markets  of  a  useful  food, 
the  comparison  is  not  a  very  good  one ;  if,  on  the  other 
hand,  the  object  of  all  these  steps  has  been  to  cut  off 
supplies,  they  have  made  quite  a  complete  success." 

In  a  footnote  it  is  stated  that  several  months  ago 
importing  houses  who  were  making  contracts,  and 
would  have  brought  in  supplies  in  proper  time,  were 
notified  that  they  must  not  do  so. 

If  the  Food  Controller's  Department  has  failed 
lamentably  when  dealing  with  food  commodities  im- 
fxjrted  from  abroad,  it  has  failed  quite  as  lamentably 
and  vi'ith  even  less  excuse  in  regard  to  food  commodities 
produced  at  home.  Every  agriculturist  of  experience 
has  been  warning  Lord  Rhondda  that  on  his  system 
of  controlling  meat  prices  there  will  soon  be  very  littk- 
meat  to  control.  Presumably  the  same  bureaucratic 
officials  who  fancy  a  British  merchant  lives  by  specula- 
tion are  not  aware  that  the  breeding  and  feeding  of 
cattle  is  a  lengthy  process  occupying  months,  and  that 
the  wrong  order  once  issued,  the  full  measure  of  the 
calamity  brought  about  will  only  become  apparent  after 
a  certain  lapse  of  time.  Farmers  cannot  be  expected 
to  feed  cattle  at  a  loss.  A  very  clear  statement  in  the 
Appendix  to  the  Report  shows  that  at  the  present  price 
of  feeding  cake,  67s.  per  cwt.  for  fat  cattle  must  mean 
loss.  And  what  possible  excuse  can  be  given  for  a 
price  that  does  not  allow  for  the  grading  of  cattle,  so 
that  the  farmer  is  actually  invited  to  slaughter  his  ewes, 
and  is  admittedly  doing  so?  And  in  what  super- 
mundane world  do  Food  Controllers  and  their  officials 
live  that  one  price  is  fixed  for  the  whole  kingdom  with- 
out any  allowance  for  cost  of  transit?  Do  they  think 
that  Smithfield  is  surrounded  by  green  pastures,  in 
which  the  herds  required  to  feed  the  vast  population  of 
London  graze  at  leisure?  It  is  notorious  that  much 
of  the  shortage  at  Smithfield  is  due  to  breeders  giving 
preference  to  their  local  markets,  where  they  can  get 
just  as  good  a  price  as  in  Londop  with  no  travelling 
expenses. 

It  is  unnecessary  to  detail  again  the  sad  history  of 
the  potato  ;  but  if  there  be  any  enthusiastic  Socialist  left 
who  imagines  that  Government  Departments  can  suc- 
cessfully conduct  the  trade  of  a  nation,  let  him  duly 
weigh  this  story.  In  191 6  the  Government  purchased 
a  large  supply  of  Dutch  potatoes,  kept  them  until  they 
became  worthless,  and  then  had  not  even  the  common 
sense  to  abandon  them  in  Holland,  but  actually,  in  the 
present  shortage  of  shipping  and  labour,  transported 
this  worthless  cargo  to  England  ! 

Though  we  have  devoted  most  attention  to  the  section 
of  this  valuable  Report  dealing  with  food  products,  it 
contains  much  information  showing  the  blighting  hand 
which  Government  Departments  are  laying  on  many 
other  commodities.  The  timber,  wool,  leather,  and 
metal  trades  are  all  alike  suffering,  and,  needless  to 
sav,  the  whole  nation  as  well.  As  to  the  enormous  cost 
of  this  burdensome  officialdom,  which  results  in  nothing 
but  muddle,  scarcity,  and  inefficiency,  we  shudder  to 
think.  The  wonder  is — and  we  believe  it  is  most 
creditable  to  our  British  merchants  and  manufacturers 
who  are  apt  to  be  unduly  criticised — that  they  have  been 
able  to  keeo  their  industries  alive  at  all  under  such  a 
svstem  of  "control,"  with  200  Departments  and  18 
different  Ministries  !     Comment  is  superfluous  ! 


Zbc  investors'  TReview. 


January  5,  1918. 


DON'T    CASH   YOUR 
VICTORY  LOAN  DIVIDEND. 

£2  10s.  Dividend  will  double  your 
holding  of  War  Stock  and  produce 
£100  new  money  for  the  War. 

Write  for  particulars  to  Prudential 
Assurance  Co..  Ltd  .  142,  Holborn 
Bars.  E.C.I,  or  fo  any  of  its  Agents. 


LIFE  &  PROPERTY 
ASSURANCE  CO..  LTD. 


NATIONAL  BENEFIT 

ASSETS    EXOCeO        -  -        £1,000,000. 

Attractive   LIFE,    FIRE.  ACCIDENT  &  MARINE  Poiloies. 

HEAD    OFF1CH8 : 

NATIONAL    HOUSE.    Newgate    Street,   LONDON     E.C.  1. 

Managing  Director:  J.  Francis,  J.P.,  F.S.S. 


Money    and   Credit    Notes, 


Bank  Rate  5  per  Cent.    (Reduced  from  5^  percent,  on 
Thursday,  April  5,  191 7.) 

Norfolk  House,  Friday  Evening. 

If  the  decision  to  reduce  the  interest  on  Treasury 
bills  was  due  to  the  initiative  of  the  Treasury  officials 
themselves,  then  it  is  to  the  credit  of  the  officials. 
There  was  no  reason  why  money  should  be  kept  as 
high  as  it  has  been  for  many  months  past,  and  as  the 
whole  power  of  determining  what  it  should  be  lent  at 
was  in  the  hands  of  the  Government  owing  to  its 
credit-creating  power,  the  step  might  have  been  taken 
.*ome  time  ago.  It  should  have  a  world-wide  influence 
in  lessening  the  strain  on  war  finance  and  perhaps  in 
easing  the  conduct  of  general  business.  "Why  has 
the  Bank  rate  not  been  also  reduced?  "  people  will 
soon  be  inquiring,  but  the  market  has  not  waited  for 
that.  As  soon  as  they  got  to  business  again  after  the 
New  Year  holiday  bankers  met  and  decided  to  reduce 
their  allowances  on  deposits  by  ^  per  cent,  to  3^  per 
cent.,  and  naturally  discount  houses  followed  "suit, 
giving  3j  per  cent,  for  call  and  3J  per  cent,  for  notice 
money,  as  duly  notified  by  advertisement.  And  the 
open  market  rate  for  bills  fell  back  in  the  same  fashion, 
-so  that  our  quotations  for  bank  paper  ranged  from 
35  per  cent,  on  60-day  bills  to  4  to  4J  per  cent,  on 
six  months'  bills.  The  general  rate  on  three  and  four 
months'  remitted  paper  is  now  4  per  cent.,  and  5  per 
cent,  is  the  highest  rate  for  fine  internal  bills  of  long 
usance.  We  need  not  be  surprised  if  these  rates  go 
lower  still,  for  the  market  is  overloaded  with  credit. 

For  instance,  the  Bank  return  shows  an  increase  of 
no  less  than  ;^34,25o,ooo  in  the  total  of  other  deposits, 
raismg  them  to  ;(^^is8,4i  1,000,  an  unprecedented  figure, 
if  we  mistake  not,  and  ^"42,023,000  above  that  of  a 
year  ago.  Where  d^d  this  money  come  from  to  gorge 
the  open  market?  ^9,934,000  of  it  came  off  public 
deposits,  or  Government  balances,  ;^i  1,1192,000  was 
product  of  borrowing  on  other  securities,  and 
;^i 2,530,000  was  -furnished  by  an  increase  in  the 
Government  'securities,  which  now  stand  at 
;^70.833.770.  Owing  to  the  nett  expansion  of  nearly 
;624'OOO.opo  in  the  liabilities,  the  proportion  of  reserve 
to  these  liabilities  has  shrunk  by  2J  per  cent,  to  16I 
per  cent.,  and  that  in  spite  of  an  increase  of  ^^2 15,000 
in  the  reserve.  That  Increase  was  due  entirely  to  coin 
and  bullion,  the  stock  of  which  is  ;^86i.ooo  larger. 
But  this  was  offset  to    the    extent    of    ;^647,ooo    by 


a  larger  note  circulation.  It  is  worth  noting  that  the 
;^59, 199,000  of  coin  and  bullion  now  held  by  the  Bank 
is  ;^4,24i,ooo  larger  than  at  this  time  last  year. 

The  principal  feature  in  the  foreign  exchanges  this 
week  has  been  a  further  advance  in  the  Scandinavian 
rates  due  to  buying  on  the  part  of  Scandinavians,  who 
are  inclined  to  regard  an  early  peace  as  quite  possible. 
Stockholm  has  advanced  43  points  to  13.95  '*■'•'  Copen- 
hagen i6j  points  to  15.30  l^r.,  and  Christiania  10  to 
14.40  kr.  Despite  the  better  news  from  Italy,  the  lira 
has  depreciated  further  in  value  to  39.80  Ir.  per  pound 
sterling.  Petrograd,  however,  has  remained  in  the 
neighbourhood  of  360.  The  Buenos  Aires  exchange 
has  moved  a  point  in  our  favour  to  52id.  on  the  news 
that  Argentine  has  granted  to  the  Allies  a  credit  of 
;^40,ooo,ooo  at  5  per  cent.,  as  a  part  of  the  scheme  men- 
tioned below.  This  is  the  first  occasion  on  which 
Argentina  has  ever  acted  the  r6le  of  a  lender,  but  the 
most  noteworthy  aspect  of  the  transaction  is  its  indica- 
tion of  South  American  faith  in  the  cause  of  the 
Allies.  The  loan,  which  will  run  for  two  years,  has 
been  granted  practically  on  a  note  hand.  It  will 
be  liquidated  gradually  by  the  payment  of  intere.'il 
on  Argentine  loans  held  in  the  Allied  countries  dur- 
ing the  next  two  years,  and  also  by  the  redemption  of 
loans  falling  due  here,  including  the  ;^5,ooo,ooo 
Argentine  loan  maturing  in   1920. 

In  connection  with  the  amalgamation  of  the 
London  and  Provincial  and  London  and  South- 
western Banks,  it  has  been  arranged  that 
the  following  directors  of  the  South-Western  shall  be- 
come directors  of  the  amalgamated  institution  :— Sir 
John  H.  Bethell,  M.P.,  Mr.  Arthur  Bilbrough,  Sir  J. 
Fortescue  Flannery,  M.P.,  Sir  H.  Herbert  Hambling, 
Lord  Claud  Hamilton,  and  Mr.  H.  T.  Hodgson. 

It  is  announced  from  Johannesburg  that  the  total 
applications  for,  the  5  per  cent,  stock  issued  by  the 
Union  Government  of  South  Africa  was  ^^5,500,000. 
Of  this  the  public  subscribed  ;^4,699,ooo  and  the  Public- 
Debt  Commissioners  took  the  balance.  We  are  glad 
that  the  outlying  portions  of  the  British  Empire  are 
showing  such  energy  in  making  provision  for  their  own 
wants. 

A  remarkably  well-designed  stroke  of  business 
appears  to  have  been  done  between  our  Government 
and  that  of  the  Argentine  Republic,  in  virtue  of  which 
the  whole  of  this  year's  Argentine  surplus  wheat  crop 
has  become  our  property.  The  quantity  bought  .is 
put  at  2,500,000  tons,  and  the  price  appears  to  be 
between  ;^43,ooo,ooo  and  ;^'44,ooo,ooo  sterling,  ac- 
cording as  the  500,000,000  paper  pesos  to  be  paid  work 
out  on  the  exchange.  But  we  do  not  arrange  to  remit 
any  of  this  money — and  here  is  where  the  ingenuity  is 
most  conspicuous.  Instead  of  remitting,  the  Argen- 
tine Government  takes  the  burden  of  payment  in 
Argentina  on  itself.  It  will  advance  the  money  to  the 
British  Government  for  two  years,  and  we  have  under- 
taken to  liquidate  the  debt,  first  by  meeting 
as  it  falls  due  the  interest  due  here  on 
Argentine  loans  in  Europe,  not  only  held  by  us 
but  by  Continental  countries.  Also  the  principal 
of  the  loans  negotiated  by  Messrs.  Baring  Bros.,  in- 
cluding ;^5 ,000,000  loan  due  in  1920,  will  be  provided 
for  by  us.  Thus  the  necessity  for  transmitting  gold 
to  the  Argentine  will  be  obviated,  and  a  substantial 
step  taken  towards  reducing  the  foreign  obligations  of 
the  Republic.  No  rate  of  exchange  has  been  fixed,  but 
the  present  value  of  the  paper  peso  or  dollar  is  about 
2 id.  in  British  currency,  and  it  is  not  unlikely  to  im- 
prove somewhat  as  the  result  of  this  astute  arrange- 
ment. Five  per  cent,  is  the  rate  we  have  agreed  to 
pay  the  Argentine  Government  for  the  money  it  pro- 
vides, and  in  the  circumstances  it  is  not  dear  borrow- 
ing. The  legislatures  in  both  countries  will  have  to 
sanction  the  bargain,  and  we  should  think  will  show 
no  hesitation  in  doing  so. 

In  several  ways  the  past  year  has  been  a  very  pro- 
fitable one  to  discount  houses,  and  this  is  reflected  in 
the   dividends    now    being   announced.     The    National 


J,\NU.\RY   5,    1918. 


^be  investors'  TRcvlew. 


13 


Discount  Co.  raises  its  distribution  from  5  per  cent,  to 
6  per  cent,  for  the  half-year,  making  11  per  cent., 
against  10,  for  the  12  months.  No  change  is  made  by 
the  Union  Discount  Co.,  which  again  pays  13  per  cent, 
per  annum,  less  tax,  with  a  bonus  of  is.  per  share,  tax 
free,  but  it  places  ;^25,ooo  to  reserve,  and  carries  for- 
ward a  larger  balance  of  p^i  16,500.  Alexanders  and 
Co.,  in  addition  to  the  usual  dividend  of  5  per  cent., 
making  10  per  cent,  for  the  year,,  less  tax,  provide  a 
bonus  of  2s.  per  share,  tax  free,  place  ;^io,ooo  more 
at  ;^30,ooo  to  reserve,  and  carry  forward  an  additional 
;^S,c)00  at  ;^23,ooo.  No  doubt  these  fine  results  are 
largely  due  to  the  big  business  done  in  Treasury  bills, 
which  paid  4?  per  cent.,  while  money  could  generally 
be  borrowed  at  4  per  cent.,  and  this  more  than  com- 
pensated for  the  shrinkage  in  the  amount  of  com- 
mercial paper  which  had  to  be  handled. 

.^t  the  meetings  of  the  London  and  South-Western 
and  London  and  Provincial,  the  scheme  for  the 
amalgamation  of  the  two  banks  was  unanimously  ap- 
proved by  the  shareholders.  We  dealt  fully  with  the 
proposals  when  they  were  first  put  forward,  and  have 
nothing  to  add  except  to  emphasise  our  belief  that  the 
combination  will  be  to  the  advantage  of  both  classes 
of  shareholders. 

Silver. 

Silver  has  again  begun  to  rise  in  price,  and  the 
figure  last  night  was  44|d.  per  oz.  A  week  ago  it 
was  43Ad.  per  oz.  It  is  being  bought  for  trade  purposes, 
Messrs.  Mocatta  say,  and  not  improbably  that  demand 
may  continue  for  some  little  time.  According  to 
Messrs.  MontagTj's  circular,  the  stock  of  silver  in 
Bombay,  on  December  27,  1917,  was  unchanged  at 
3,700  bars.  In  Shanghai,  on  December  27,  the  stock 
was  returned  at  24,400,000  ozs.  in  sycee,  and 
$33,300,000,  a  decline  of  400,000  ozs.,  the  dollars 
remaining  as  before. 


PUBLIC   INCOME  AND   EXPENDITURE. 

(For  7  days  ended  Dec.  29.) 


Applications  for  the  Rs.  40,00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Rs.  2,22,50,000.  Of  these 
Rs.  37,03,000  were  allotted  in  deferred  transfers,  and 
Rs.  2,97,000  in  immediate  transfers.  Tenders  for  bills  and 
deferred  transfers  at  is.  4  29-32d.  and  for  immediate  transfers 
at  IS.  ^d.  received  about  17  per  cent.  Since  April  last 
Rs.  37,80,00,000  have  been  sold,  realising  ^^25,892, 000.  Next 
week   40  lakhs   will   again  be  offered. 


BANK    OF    ENGLAND, 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 
Week  ending  on  Wednesday,  January  2,  1918. 
ISSUE     DEPARTMENT. 


Notes  Issued 


76,492,980 


Government  Debt., 
Other  Securities    ., 
Gold  Coin  and  BuIlioD 
Silver  Bullion 


£76,492.980  ' 


Proprietors'  Ciplial 

Rest 

Pablie  Deposlts(lncludlng 
Bzcbeiuer,  Savings 
Banks,  Commissioners 
of  National  Debt,  and 
Dividend  Accounts)  .. 
'  Otber  Deposits 

Seven  Da;  and  otber  Bills 


BANKING 
£ 


DEPARTMENT. 


14.553.000 

3.321.425 


32,074,902 

158,411,326 

11,660 


I 


Government  Securities 
Other  Securities    .. 

Notes 

Gold  and  Silver  Coin 


11,015,100 
7,434,900 
58,042,980 


£76,492  980 

£ 

70.833,770 

106,480,723 

29.901.960 

1,155.860 


^^.  ,    £20^372,313 
Chief  Cashier. 


£208,372,313 
Dated  January  3,  191S  J.  G.  NAIRNE 

BANKING     DEPARTMENT. 

,In  the  following  table  will  be  found  the  movements  compared 

.  with  the  previous  week,  and  also  the  totals  for  that  week  and  the 

corresponding  return  last  year. 


Last  year. 
Jan.  3. 

Dec.  26, 
1917. 

Jan.  2, 
igi8. 

Increase. 

Decrease. 

3.378.419 
53.147,091 
Il6,3l<8,305 

•  22,525 

.'  62,J87,545 

.91,789.493 

■  ,  '33  512,304 

Udblliiles. 
Rest 

Pub.  Deposits  .. 
Olber    do. 
7 'Jay  Bills 
Assets. 
Gjv.  Seouriiles. 
Other        do. 
Total  Reaeive    . 

NoteClroulatloD 
Coin  and  Bullion 
Proportion 
Bank  Rate 

£ 

3,301,135 
42,009,347 
124,161,430 

10,335 

58,303,010 
94.888,723 
30.843.504 

£ 

45,943.965 
58,337469 

i8-6p.o. 
5       .. 

£ 

3,32',425 

32,07^,902 

158,4(1,326 

11,660 

70.833,770 
106,480.723 
31,057,820 

.   £ 

46,591,020 

59.198,840 

163P.C. 

5    „ 

£ 

20,290 

34,249.896 
1.325 

Decrease. 

£ 

9,934.445 

Increase. 

12,530,750 

11,592,000 

214,316 

^r... 

34,271.511 

34,271,511 

of    '  i 

..,  JS>895,«6<> 
■  54,957,464 
-ag-S  pi. 

Increase 

647.  "55 
861,371 

Decrease, 
£ 

23  P.c. 

Revbjiue. 

Expenditure. 

Customs          

1,153,000 

National  Debt  Service 

2 

£ 
073.991 

Excise 

2j8,0OO 

Inter  st,   &c.,  on  War  Debt 

A 

167.535 

Estate,  &c.,  Duties  .. 

7'4.ooo 

Development  &  Road  Impvt 

Stamps 

J  60,000 

Payments  to  Local  Taxation 
Other    Consolidated    Fund 

_ 

Land  Tax  and  House  Duty 

50,000 

Property  and  Income  Tax 

2,8)4,000 

Charges        

99.6'7 

Excess  Profits  Tax  .. 

4.531.000 

Supply  Services 
Bullion  Advances     .. 

39.96  ).38i 

Land  Values  ..        ..        •• 

20,000 

40,000 

Post  Office 

1,250,000 

For    Advar  ce   for    Interest 

Crown  Lands 

40,000 

on  Exchequer  Bonds  un- 

Sundry Loans 

— 

der    Capital  Expenditure 

Mi-celianeous 

407.367 

(Money)  Act,  1904  .. 

— 

Bullion  advances  repaid    .. 

For  Treasury  Bills  .. 

B-i 

048,000 

ForTreasuryBiils  for  Supply 

86,029,000 

War  Loan  and  Exchequer 

5%  Exchequer  Bonds,  1922. . 

— 

Bonds           

330,91.5 

6%  Exchequer  Bonds,  1920. . 
National  War  Bonds 

— 

Other  Debt  under  War  Loan 

21,714,003 

Acts,  19:4,-16 

11 

972,005 

War  Expenditure  Certificates 

— 

For  exchequer  Bonds  under 

War  Savings  Certificates.. 

600,000 

Section  61  of  Finance  Act, 

4%  War  Loan,  1929  1942  \ 
5%  War  Loan,  1929-1947  i  ' ' 

1916,  and  Section  34,  1917 

— 

Under   Telegraph    (Money) 

Other  Debts  created  under 

Act,  1913 

— 

War  Loan  Act,  1915,  and 

Under    Post    Office     (Lon- 

Finance Act,  igi6.. 

16,133,264 

don)  Railway  Act,  1913.. 

— 

Telegraph  Money  Act,  IQ13 

— 

Under  Military  Works  Acts 

— 

Under  Post  Office  Rly.  Act. 

Under  Housing  Act,  1914. . 

— 

1913 

— 

Public    Buildings  Expendi- 

Under Military  Works  Act, 

ture  Act,  1903 

— 

Under  Public  Buildings    .. 

— 

Old  Sinking  Fund,  1907-8.. 

— 

— 

Sinking  Fund,  1914  . . 

— 

Under  Housing  Act.. 

— 

China  Indemnity 

— 

Repayment  of  Advance  for 

Cunard  Agreement  Act     .. 

— 

Interest     on     Exchequer 

Depreciation  Fund  .. 

~ 

Bonds           

— 

Suez  Canal  Drawn  Shares. . 

— 

China  Indemnity 

— 

Temporary  Advances  Repaidi35 

291,000 

Cunard  Loan  repayment   . . 

— 

Increase       in       Exchequer 

Suez  Canal  Drawn  Snares.. 

.» 

balances       

— 

Ways  and  Means  Advances  i 

43,416,500 

Decrease      in      Exchequer 

balances       

2,739.313 

£280,992,444 


£280,992,444 


Excluding  sales  through  biuks  which  have  not  yet  been  brought  to   account 

CURRENCY    NOTES. 

Return  of  Currency  Notes  for  the  weelt  ended  January  2,  1918. 


Issued. 

Cancelled. 

Outstanding. 

£1  notes         ..        ..        .. 

10s.  notes        

Note  certificates 
Previous  total 

3,700,783 

1,188,662 

1,900,000 

792,  6i,io8 

3,7'6,523 
1,034,267 

579,478,813 

£ 
152,804,168 
37,596,682 

221,782,295 

799,050,554 

586,599,603 

212,450,950 

Ratio  of  gold    held  against  notes,    this  week.  14-97  p  c. ;  last  week  13.46  p.c. 
LUNUUN    UANK    K2>'   CttiAKlNG. 


Date. 

1917. 

1916. 

Increase. 

Decrease. 

December 

£ 
1,439.206,000 

£ 

1,204,438,050 

£ 

234,768,000 

£ 

Total 

19.121,196,000 

1918. 
400,652,000 

15,275,040,000 

3,846,150,000 

- 

January  2 

1917- 

gSg.iir.roo 

11,541,000 

- 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at 

48.). 

Nov.  30,  1917 

Nov,  23,  1917. 

D  ec.  t,  1916. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

£ 
99.977.400 

7y,047.2  K) 
10,500,000 

106,039,000 
77.332,400 

I'  ,SO0.OOO 

£ 

52,303,400 
35,156,200 

Total  gold  held  by  banks 
Gold  with  F  deral  Res.  Agent 
Gold  Redemption  Fun  i 

169,  24,600 

1.^2,364,800 

2,455  6  0 

193,841,400 

124,789,600 

2,3   g.Hno 

i^7.53v,«w 
50,4.1,400 

29S200 

Tota  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

324.345.000 
10.897. iOO 

3iO,.,40  OOJ 

to  Sii.fioo 

138,246,200 
2,167,200 

Total  reserv'-s  .. 
Bills  discounied— Members' . . 
Bills  bought  in  open  market 

335,242.200 
151,241,400 
41,090.800 

331,752,  00 
131.200,400 
41,9-*', 000 

140,41  ,,400 

4,301,000 

21   S>I,20i 

Total  bills  on  hand     .. 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec. 
Municipal  warrants      ..         .. 
Loans  on  gold  coin  and  bullion 

I92,3>')2,2uO 

9,460,800 

8,358  400 

2i)5,8oo 

173  181,400 
10,792,400 
11,570,000 

284,40* 

25,0*2,200 
8,043,000 
2,233  400 
4,250,800 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 

210,487,200 

a  1,418,200 

74    3  .O'O 

195  828,2' '0 
^.374.4^0 

60,505,000 

40,149,400 
7,637,600 

Total  dbdctns.  fm  gross  dep. 
5%Red.FundagFed.Res.bknts 
All  other  resources 

74,63^,0.  0 
107,400 
400.8  0 

bj.  79,400 
107,400 
65S.600 

7,637,600 
84,000 
4<l9,00O 

Total  resources 

620,908  6t.o 

5ui,226ooo 

188,78. ,400 

Capital  paid  in 

Government  deposits  . . 
Due  to  membrs     Res.  account 
Due  to  non-mbrs— clearing;  ac. 
Members'  btnk  deposits— nett 
Collection  Items 

13,700  ODO 

44,192-400 

297.805.800 

3  509,800 

46,355.200 

i3>4''7,2«x> 

39.282,200 
285,329,600 

4,458,230 
43  033.800 

11,147  400 
5,355,40J 

122,706,000 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R,  bk  nts  in  circn    nett  liab. 
All  other  liab,  in  for  Gov  ci  dts 

a  393. 161.400 

211,396  600 

1,600,000 

910, '00 

372.i03.i00 

203,170,400 

1,6  O.COO 

916,600 

I  i8, 06 1,400 

49,427,80 

20,000 

126,800 

Total  liabilities 

620,968,600 

591,2^6,000 

188,783.400 

Gold  res.  ag  nett  deposit  liab 

Gold  &  lawful  money  reserve 

against  nett  deposit  liabilities 

Gold  res  ag  F.R.  nts  in  act  circ 

59-4% 

62.8% 
63.8% 

62.6% 

66.1% 
62.6% 

727% 

74.5% 
.02.6% 

a  Amount  due   to  other  Federal  Banks. 


'4 


CTbe  Jnpestors'  IReview. 


Janl'arv  5,  1918. 


WEW  YORK  ASSOCIATED   BANKS  (dollar  at  4s.). 


I'Ouis       83}.7T6,oaD 

Reserve  held  in  owo  Vaults  . .  4,018,000 
Reserve  held  in  Ped.  Res.  Bk.  104,^61  ooo 
CsHh  tn  own  Vaults  31.846,000 

Refterve  held  tn  Other  Depos.  1,680^000 
Net!  Oeinand  Deposits  ,.   70  (,458,000 

Nett  Time  Deposits     . ,         . .  j    38.548,000 

Circulation  1     6  «o6,ooo 

EionsB  Lawful  Renervft        ..|    16,846,000 


Dec.  t9, 191; 


Dec.aa.iQiy.  Deo.15,1917 


834,670,000 

3,980,000 

104,573,00c 

31,714.000 

1,740.000 

703,038,000 

37,598,000 

6,803.000 

16,586.000 


C 

937,708,000 

3,''58,ooc 

115,090.000 

33,1^98,000 

1,708,000 

7i5,688.oo< 

38.068,000 

6.774,000 

25,320,Of)0 


Dec. 30, 1916. 


666,7^4,000 
85,468,000 

35,7i4rOOO 

10,924.000 
659,868,000 

31,826,000 
5,770,000 

18,408,000 


OPEN    NAttKCT   DISCOUNT.  Last  week 

i  birty  and  sixty  day  remtttad  

Tbce«f  uiuiitb*  

Pour  monibr  ,,  , 

Sis  montbt  ,  ,,        .,        ,, 

Three  months  fioe  laland  MHa  

Pour  monihf  

Sii  iDoDthi  


Lawful   Ke».Tve  consists  of    i«%  of    tue  Demand  Deposits  and  5%  ot     the 
Time  Deposits. 

NEW  YOWK  STATE  BANKS  *  TBUST  COMPANIES  (dollar  at  4s  ) 


Loans  ., 

SpMle 

Deposits 

Leical  Tenders 


Dec.  99.  1917. 


164,770,000 

3,852  000 

167,976.000 

l5,29».roo 


Dec.  33,  X917. 


— I — 

167,568.000 
4,384,000 

l6tl,968,uoo 
l4,S6S.o-x) 


Dec.  15,  1917. 


167,426,000 

4,458,000 

167,774,000 

14.95b,oon 


Dec.  30, 1916. 


» 50,674 ,000 

I2,382.<00 

150,898,000 

3  2t2,00O 


imebHUL  itANh   kH   obKMAN)    iZU  nittrkt  lu  iii>   4.. 


Toul  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Aflvaooes 
Note  olrouUtioD 
Deposits 


Dec.  n,  1917. 


128.468,650 
57.840,550 
630.9  718  o 
315,550 
551.301,850 
33'i"'5'.SOO 


Dec.  15.  igt7. 


C 

I27,8u4,200 

54.653.200 

614,123,450 

380,800 

538,'66.400 

3T<.8->2,700 


Dec.  7,  1917. 


£ 
127,230,150 
53.517.400 
6  7,281.550 
35 '.300 
534,552,000 
301.843.300 


Dee.  22, 1916. 


X26,769.6oo 
8,663,250 
412,835,700 
495.350 
37*  745,650 
l.'9,6l3,8oo 


Clearing  House  return  during  Noveiniwr  £424,889,705,  against  £505,402,450 
in  October. 

BANK  OF  NORWAY. 


Gold 

Balanee  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
Discounts  ii  Loans. 
Notes  in  (Hroulatlon 
Depositt  at  notice. . 


Deo.  15, 1917. 


f. 
6,296,000 

4.676,000 

7'7,ooo 

to  686,000 

17,516,000 

11,311,000 


Dec.  7,  1917. 


Not.  30, 1917 


6,332,000 

4,502,000 

701, »0 
20,437,000 
17.023,000 
11,454.000 


£ 
6.322,000 

4,388,000 
707,000 
20,235,000 
•7,043.000 
1 1 ,093.000 


Dec.  15, 1916. 


£ 
1,838,000 

^,896, roo 
767,000 
S,754,000 
1,591.000 
1,1-53.000 


NETMEKUWUS  BANK  (12  Floriog  to  the  t). 


I 


GoM  and  Silver 
Bi      add  Advances 

Note  ..'rrulatlOD 

Deposits.. 


Dec.29,i9i7 


£ 

58.771,666 

16,442,250 

74.486,7,0 

4.469.333 


Dec. 22, 191; 


58,805332 

14.143   00 

72.452.834 

4.i«9>750 


Dec.  8, 1917 


e 

58,862,000 

14.718.666 

72.554.083 

4,236,916 


Dec.30,i9i< 


49,518916 

'4,3'5.50O 

63.504,813 

4,548,083 


BANK    OP    SPAIN  (25  pesetas  to  the  £). 


Dec. «.  1917  Dee.  15, 1917  Dec.  j,  1917.  Dec.  13, 1916 


Gold        

Silvsr 

Fo    '<.>  Bills    .. 
Disco  mil  ana  abort  Bills  . 
Ti....sury  Aooount.  &c. 
Notes  in  CirouUliuu  .. 
Cjrrt.ut   A  :aounts.  Deposit 
Ulvlilends,  Interests,  &c.     . 
Goveruuieui  SeeiiriUHi^ 


78,670,148 

«8, 589,(09 

3,588.075 

2.,igo,8oi 

25,1)88,171 

110,216,961 

37.576,726 

956  048 

1.381.^57 


f 

78,657.315 

28.600.283 

3.59'<,457 

29.217,2^1 

25  o6S,786 

110.037,266 

37  224,616 

1,314.816 

3.880.506 


78,581.715 

28,59s. 183 

3-575,522 

'9,'37.95' 

21.983,  08 

110,241,682 

37.499,879 

1,5a).  85 

l.«77,2oi 


£ 
49.249.359 

29.7J9  543 

3,804,(189 

26,433,666 

«8.56'i,553 

93,354,013 

'9.290,556 

1,IS'3,797 

^,652.n<)7 


LONDON  COURSE  Of  BXCHANtiE. 


Place. 


Ansterdam  . 


SwltMrteDd. 

Peirograd 

Genoa,  Ac,  , 
Spain     . .     . 


Lisbon  and  Oporto 
Coianhaeen.. 
Christiania  . . 
SlocHho<m    .. 


Usance. 


Dec.  37,  1917. 


Sellers.   Buyers 


Cable  transfers  . . 
Three  months'  bills . 
Cable  transfers  . .  . 
Three  months'  bills. 
Cable  tran.--frrs  . .  . 
Tiirc-  months' bills, 
eable  traisters  .,  . 
Cable  transfers  ..  . 
Cable  tranttt-rs  ..  . 
Three  mo'  ths'  bills. 
Cable  transfers  ..  . 
Cable  transfers ..  , 
Catjle  transfers  . .  , 
Cahle  transicrs ..     . 


10.90 
11.05 
27.19 
2760 
3075 
21.10 
350 
3965 
19.5* 

15-15 
1427 

'4  " 


11.00 
11.15 
27.24 
27.65 
20.8s 
21.20 

355 
3/-«5 
19.68 
58i 
30i 
I  .30 
t4-i7 

14.22 


Jan.  3,  1917. 


Sellers.  Buyers 


10.93 
11.10 

27  20 
27. Co 
20.  8 
21.05 

360 

39-90 

"955 

\U 
'5  33 
14.45 
■4.0 


10.98 

11.15 

27.25 

27-65 

10-88 

ai.15 

(70 

39  9* 

19.65 

5« 

3oi 

15-43 

14.5J 

14  10 


FiiKblUn    KAlhA    UF    EXCHaNIiI    0^    UllNDO^. 


Parte,  cheques  ~ 

ABbter,  am.  cheques 
luly,  sight 
Madrid,  tight.. 
L  ftbon,  fiiKbt . . 
Swiia  rland,  sight   .. 
CJsnsiian  a,  si.bl      ., 
Stockho  m,  siifht 
0'penha»!en.  siKht   .. 
Prtrograd,  sight 
Alenandria.  &  gkt      .. 
Bombay,  T.T.  ,. 

Calcuti.,  T.r. 
Hong  Ko,  g,  T.T.     .. 
Shang' ai,  T.T. 
Slniapore,  T.T. 
Tok  ha.  a   TT.      .. 
New  York,  eal>la     .. 
Bueno>  A  r.'S,  T.T... 
Valparaiso.  »,  days.. 
Xonievideo,  T.l . 
Rio  de  jan.:iro,  90  day 


Method  of 
Quoting. 


FrMOCfi  .0  /i         . 
hlorinstoji 
Lite  to  ^1  .. 
Hesetas  to  £1 

rnce  to  milreie  . 
Francb  to  £1 
K'Oltcr  to  fi 
Kro  er  to  f  i 
Kron.  r  to  £1 
Kout'les  to  ifio     . 
PiHB  rea  10  £t 
'sterling  to  rupee. 
Sterlinii  to  r,.pee 
Steiling  to  d  liar. 
Steil  ng  to  t»el 
Sterlinn  to  dollar. 
Sterling  t'>  yen     . 

I  OlIiltK  to  £t 

Pence  to  dollar    . 
I  ance  to  pet>o 
Hence  to  dollar 
Pence  to  miireis  . 


2>.22i 
12.107 
25.22! 
25.224 

53ld. 

25  22i 

18.   59 

1«.,59 

18.159 

94-57 

97i 

1/4 

1/4 


3    .58H. 
47IM. 

5ld. 
i6d. 


Last 
We,=k. 


^7.20 
10.964 
39-77i 
l(j.6o 

Sojd. 
20.,^! 

K-40 
14.22! 

362j 

97{ 
I/4I 
•/4l 

4/4 

2/44^ 

:!% 

5  (Id. 
■>Hd- 


Thi< 
Week. 


BANK   AND  DEPOSIT   RATES. 


.  *-i  . 
•  4  -5 
.4—5  • 
■  •  4I-5  . 
Laat  itreek 
Pec  cent. 

Bulk  of  Kngiand  uintmum  disoouol  rata        ,,        ,,        ,,        c 
,,  ,,         short  loan  rates  *        

Bankers*  rate  on  deposits  . 

Bill  brokers' deposit  rate  (call) ]       J 

„  7  and  14  dayr' notloe  [[        Ai 

Current  rates  for  7  day  loans         4— i 


Thi»  week 
Per  cent. 

M-4k 
■     3tt-*f 
4»-5 

•     4i-S 

This  week 
Per  oea 
5 


for  call  loans 


^ 


The   Week's    Stock   Markets. 


Looking  back  at  the  history  of  the  past  year  on  tht- 
Stock  Exchange,  we  cannot  .say  that  the  experience  has 
been  a  very  pleasant  one,  except  in  a  few  ol  the  smaller 
sections,  which  only  affect  the  great  current  of  invest- 
ment business  to  a  comparatively  trifling  extent.  Taking 
a  general  survey  of  the  markets,  there  has  been  an  all- 
round  decline  of  nearly  6  p^r  cent.,  but  fortune's  favours 
have    been     very     irregul.irly     distributed,     and     the 
shrewdest  speculator  might  easily  have  found  himself 
wrong  In  every  operation  he  attempted.    Take  two  cases 
as  an  illustration.  On  any  sound  reasoning  it  mighthave 
been  expected  that  Argentine  securities  would  improve 
in  this  world's  welter  through   which  we  are  passing. 
The  country  is  far  removed  from  the  war  area  (except 
for  such  futilities  as   the   Luxburg  villainies),  and  we 
are  badly  in  need  of  the  very  goods  that  it  can  supply. 
But  there  have  been  droughts  and  locusts  and  labour 
troubles,  and  the  leading  stocks  show  an  enormous  de- 
preciation,  which  no  one  could  have  reasonably  fore- 
casted.     On  the  other  hand,  Breweries,  in  face  of  all 
the  licensing  restrictions,  might  have  been  exp)ected  to 
drop  rather  heavily.     On  the  contrary,   they  have  not 
had  such  a  prosf)erous  time  for  many  years,  and  a  few 
of  the  most  typical  stocks    have  gained  over  40  per 
cent.     American  Railroads,  naturally,  gave  way  when 
the   States  linked  their  fortunes  in  the  war   with    the 
Allies,  and  the  loss  amounts  to  about  37  per  cent.  ;  but 
this  is  not  so  bad  as  it  looks,  because  the  bulk  of  the 
old  holdings  in  this  country  are  now  in  the  hands  of  the 
Government   on   trust    for    the    original    beneficiaries. 
Miscellaneous  securities  have  been  extremely  good  in 
places,  and  dealings  in  such  things  as  Iron  j^nd  Steel 
shares,  Armaments,  Shipping,  and  Rubbers  have  been 
wonderfully  good,  relatively  speaking;  but  we  are  afraid 
that  the  whole  of  the  business,    if  it  were  averaged, 
would  not  pay  office  and  staff  expenses.  With  regard  to 
the  past  week,  the  reduction  in  deposit  rates  has  given 
a  welcome  imjjetus  to  gilt-edged  securities,  but  the  in- 
tensive culture  of  National  War  bond  purchases  has 
partly  offset  the  effect.     ."Vt  one  time  there  was  a  good 
deal  of  anxiety  about  the  payment  of  interest  on  Rus- 
sian securities,  and  it  is  quite  possible  that  there  may 
be  considerable  delay  in  meeting  the  coupons  as  they 
fall  due  ;  but  everything  points  to  the  conclusior*  that 
the  intriguing  Hun  has  overreached  himself  in  dealing 
with  the  Bolsheviks,   and  with  patience  we  have  every 
confidence  that  things  will  work  out  all  right,  both  from 
the  national  and  investment  point  of  view. 

On  the  whole  the  m.\rket  opened  the  year  with  an  extremely 
satisfactory  and  encouracing  tone,  mainly,  perhaps,  owing  to 
the  reduction  in  deposit  and  Treasury  hill  rate*,  which 
naturally  mu5t  tend  to  put  business  into  the  already  estab- 
lished securities  in  which  the  Stock  Exchange  is  most  inte- 
rested. Apart  from  that  the  news  has  been  on  the  whole  very 
satisfactory.  The  Russian  position  seems  to  be  clearing  np, 
the  Italian  menace  has  been  arrested,  and  the  temporary  stale- 
mate on  the  Western  front  is  more  aoparent  than  real.  In  the 
circumstances  it  is  not  surprising  to  find  that  eilt-edged  securi- 
ties have  been  advancing  d.ay  by  day,  and  Conso's  particu- 
larly have  shown  exceptional  strength,  with  advances  that 
amount  to  a  full  point.  W.ar  Loans,  India  issues,  and  others 
in  this  section  have  all  .gained  substantial  fractions.  Colonials 
opened  well,  but  there  was  not  so  much  support  in  this  divi- 
sion, and  the  stocks  which  clvnged  hands  were  comparatively 
few  in  number  and  less  in  bulk.  In  the  Foreign  section,  the 
French  War  Loans  were  particu'arly  eood  at  one  time,  and 
Soanish  also  showed  strength,  but  Greeks  rather  tended  to 
give  way.  Peruvian  Corporations  were  firm,  and  Argentine 
stocks  generally  either  held  their  ground  or  improved  to  some 
slight  extent. 


January  5,  19 18. 


Zbc  Jnvestors'  TReview. 


IS 


Lasi 
[Week 


IThi^ 

iWeei- 


Consols 

War  Loan    34% 

44% 

5%    1929-47- 
>,  4%,  19  9-42- 

India  3% 

M     3*% 

Australian  5^%.  1920-22  . 

Canada  4%,  1940-60 

,        44%.  '920-5 

N.S.W   4%    1935 

Argentine  4%,  1900 , 

Belgian  3% 

Brazil,  1013 

5%.  1914    

Cfaioese  1896  

,,       1912 

Pgypt  tlnitied  4% 

Caledonian  defd , 

Gt.  Central  pra , 

dfd 

Gt.  Eastern , 

Gt.  N.  rthern  dfd , 

Gt.  Western    , 

LancK,  and   Yorks , 

r.ondon  BriKhton  defd.  . , 
London  Chatham  ord 


54k 
84I 
99| 
93H 

100^ 

54" 

63 

99* 

Sih 

92$ 

hi 

65 

6t 

69 

79 


Caa*'iian  Pacific   

E.  Indian  Guar.  4*  %  debs. 
Grand  Trunk  orci.    

Do.  ist  pf 

Do.  3cd  pf 

Anto'agasta  dfd 

lirazil  Common 

e.  A.  &  Pacific 

B.  A.  Gt.  Southern 

B.  A    Western    .,., 

Angio-South  American   . 

Kaiik  of   Australasia 

Bankof  N.S.  Wales 

Barclay  &Co.*'A" 

Do.       "ts" 

C;ipital  &  Counties   

Chartei  ed  of  I  ndia    

H  ^Kgkong  &  Shanghai    . . 

Lloyds   

London  &  Provincial  .... 

London  &  Brazilian 

Armstrong,  Whit*orth  .. 
Birmin^'ham   Small  Arm>- 

Canimell'Laird 

Cartio  Fleet 

Dorman,  Long  

Associated  Cement 

Borax  dfd 

Bovri>    

Brazil  Traction  

Brtti,h  A mer.  Tobacco  pf. 

British  AliHiiinium 

Bnii  h  Oil&  take    

Brunner,  Mond 

Castner-Keiiner 

Coat'- 

Coitrtaulds 

Cunard 

nennis  Bros 

Kastern  Telegraph   

fcia^ituians 

English  Sewing  Cotton  ,. 
Anglo-Egvptian  "  B* 

Baku  (ios.) 

Buimah 

Lobitos 

Maikop  Pipeline   ... 
Mexican  Eagle  pf.... 

Allagar  2/- 

An^iu-Java  Rub.  2/-     .... 

Aiiglo-Milay  2/ 

Ayer  Kuning  £1 

Batang  Malaka  2/- 

Bekoha/- ' 

Brit.  N.  Borneo  Trust  ft 

Bukit  Cloh2/- ! 

Bukit  Kaj  ang  £1 ' 

BuKit  Mertajam  2/-   

Bukit  riemi>awatig  2/-  .... 

Carey  I'niied  £1   

Ceylon  Para  2/- 

Chersonese 

Chevi  t2/-  

Dalkei  h  2^ 

Eastern  Invest.  Trust  £1., 

GrdQd  Central  1 1 

Gula  Kfiluiupong  £■! 

Highlands  £t 

laira  Investment  ;f  I 

Java  fard  t,i  

Johoff  Rubber  Lands  jfi. . 

Kamunin    2/-    

Kinta  Kellas2/-  [ 

Kuala  K  bu  2/-  

Labu  ij- ][' 

Lang^iH  Java  £ i ,. .[..'.'.'. 

Linggia/- 

Loudon  Asiatic  2/- 

Malacca  ;^i * 

MalayaUin  £1 !!!!!!* 

Mfrlimau  2/-   '.'.'.'.. 

Padang  Jawa  2/- .,[[ 

Pataling  2/- " 

Ahbontiakoon  (in/.) 

Bechuanaland  Exp 

Brakpaii  

Brok.  u  Hill  Prop.  (8/-)    .. 

Cam  &  Motor 

Ceniral  Mining  (^^12)  .... 

Chartered 

City  Deep      

Cons.  Gold  Fields    

Cons.  Langla<igte 

Crown  Mmes  (£o/-> 

De  Beers  did.  (jf2  lor..)  .. 

East  Kind   

GKluid  ..   .   , 

Gqv,  Areas  Mo(?     


55i 
85* 
99i 
93I 

64I 

98I 

8li 

92A 

8,j 

67 

61 

70 

8a 


<w 

9' 

ss 

8S 

84 

84 

Hi 

9 

12? 

>^* 

hi 

6« 

S* 

I6i 

i6 

18 

8,i 

Be- 

6i 

e's* 

■i8 

60 

8g 

9 

'59j 

84 
9i 

i9i 
■31 

5 
39 
72? 
70J 

7l 
"4 

35i 
7i 

114 

22J 

f.8 

84 

25 

I7i 

23 
41/6 
51  3 

6| 
23/ 
47/6 


55 
22I 

130 

5 

40 

74 

;oJ 

7i 
.14 
35J 

III 
23 

68J 

84 

25 

'7i 

23 
4'  6 
52/ 

6| 
22/ 
46/ 


N.S.W.  44%5yr.bds 

„       44%.  '9«-7 

„        5%,  1921-3 

5i%,  1920-2   .... 
Vew  Zealand  4%,  1929    . . 

Queensland  4% 

44%.  1920-5  •■ 
Union   of  S.  Africa  44%, 

19:0-5    

Victoria  4j%,  1920-3 

Westn.  Ans.  4%    

f'rench  W.ir  Loan,  5%  .. 

Japan  44%  (ist),  1905    

5%   '907 

Mexican  5%,  1S99    

Kussia  4   % 

M      44%.  IQ-^Q 

„       5%,   iqo6   

London  and  N.-W 

London  and  s.-W.  dfd.  , . 
Do     red.  pf.  1914 

Metropnlitan  

Do.        5%      pf..... 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastern 

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern 


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San   Paulo  (BraziliaQ). .. , 

United  of  Havana 

London  &  S.W 

London  City  &  Midland. 
London  County  &  West.. . 

London  Joint  Stock 

Nat.  Prov.otEng.(£io4pd 
Do.  {£i2  pd 

Parr's    

Standard  of  S. A 

Union  Discount 

Union  &  Smiths 


Kynochs   

Mond  Nickel  ord 

South  Durham  Steel 

Thornycrott    

V  ckers 


34 

3* 

37/ 

36/ i 

20/ 

20/'. 

45i 

453 

18/6 

18/6 

32/ 

3  /6 

3t/9 

31/6 

48 

"i 

3M 

""^ 

6% 

41^ 

4^ 

31/61C 

35/6 

1514 

>5>* 

10/ 

10/ 

56/ 

56/ 

27 '3 

27/6 

I/! 

1/9 

74 

74 

2; 

2i 

3/ 

3/ 

65/ 

64/jx 

Pine  Cotton  Spiiknere  . . . 

Porestal  Land 

Furness,  Withy 

Harroiis  Stores 

Hudson's  Bay    

Imperial  Tobacco  *  C  '  pf 

Lever  Bros,  "  C  '*  pf 

Lyons,  J 

Marcnnt    

Mavpole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  &  F 

P.  &  O  ilfd 

Royal  Mail  

Underground  Inc.  Bds.  . . 

North  Caucasian 

Koumanian  Cons 

Koyal  Dutch  (100  gulden< 

Shell 

-.pies  (10/-) 

U  ral  Caspian 


3/3 

7/ 

■1/74 
50  0 
5/ 

4/74 
10/ 
5/lJx 
70;6 
4/74 

3/4 
4^/3 

10/ 

3/4 
6/ J 


3/3 

7/ 
>*■}> 
50/ 

5/ 

4/7i 
■  6/ 
5/14 
74/3 
4/9 
3/6 
46/x 
10/ 
3/6 
0/3 


3/« 
27/3 

3/1 
27/3 

27,6 

-71 

35'3 

5  3 

6J/9S 
29  4i 

29/ 

32/ 

34/6 

3/6 
4'3 

4  4 

4/4 

4/6 
3'3 
9/74 

4/6 
33 
10' 

4'l 

42  6 

igld 

28/6X 

9  ' 

8  104 

54 

54 

409 

41/ 

5  4 

5/6 

3/6 

3/6 

43/ 

44/ 

4/14 

4/lJ    1 

7/ 

5ft 

5I 

52/9 

53/ 

11/ 

lo/y 

6i 

6| 

14/3 

'5/ 

?i 

3^ 

'48 

'4 

21/ 

2  / 

^■h 

2,^ 

'3 

■sS 

5/9 

5/6 

'^\ 

383 

31? 

Perak  2/-  

Port  Dickson  2/-    

i<ub.  Estates  Johore  £1. 
Kub.  Estates  Krtan  2/-. . . 

Kiibber    Trusi  ,^1  

Sampang  (Java)  2/- 

i  ^Kpumaikaiide  ;£^l     

Seaport  £1 

.-lelarigor 

Sengat  2/- 

Seremb  n  £i 

Shelford  £.1 

Sialang  ;f  I    

Singripore  Para  if-    

Singapoie  Unittd  2/-    ... 

Soember  Ajoe  2/- 

Stagbrook  £1 

Siraits  Bertam  2/- 

Sumatra  Para 2/- 

Sungei  Bahru  ^l  

Sungei  K  par  2/-   

Sungei  Kruit  £r 

laiping  2/.   

Tali  Ayer  f  i  

r  ndjo  .c  £1    

I  andjong  Malim  £1 

Tebrau  £i   

Telogoredjo  £1 

Tumpeh  2/- 

United  :3erdang  2/- . . . . 

United  Sumatra  2/- 

Val  d'Or  2- 

VallaiDhrosa  2/- 

Way  Halim  1/8  pd 


Gt.  Boulder  (2/-1    

Kysht  m    

Ma-honaland  Agency  ... 

Me)er  &  Charlton    

Vlodder  "  B" 

Do.     Deep 

VI  ysore 

R  nd  -vlines  (5/-)   

Rio  Tinto(;f5)   ., 

Ru-so-A.ii  tic 

spring  Mines 

Tai.g  iiiyika 

fanalyk    

Van  Kyn  Deep   


Last 
W-ek 


Ibis 
Week 


59 

37 
i64 
182 
74 
>3j 
7f 
'5 
24t 
27 
31 
29 


27! 

37 '6 
3i 
38/ 
40/ 
4!6 

3'/6 
486 
569 

2i 

74  X 
336 

0/ 
3}|x 
31^ 
19/9 
18  < 

1^ 
i  94 
,ai4 

81 


9/ 

\k 

7-3 

■&. 

7/6 

4/3 

•  5/ 

4" 

29/4  i 

2/74 
23/9 
2T  3X 

346 

3/.4 
44/ 
40/ 
70/x 

4/44 
3'5 

3/9 
33/6 
6/7 

9  le^ 
40/ 
■1/1 
56/ 

,/6 
7/6x 
90/ 
^4  3 
do/ 
48/1 
2/7 
1 1/6 
89 
4/4 
!4'44'< 

-/6 

■4 
7/ 

2I4 
m 

6  (A 
3li 

3tl 

14 

18 


894 


95 

95 

9-4 

9«4 

S'i 

n 

804 

92 

92 

91 

9« 

92 

92 

79 

78i 

76^ 

^94 

go 

91 

57* 

57 
414 

414 
454 
52I 

4^ 

5» 

90s 

93 

'3* 

25 

94 

94 

21J 

23i 

77 

77 

■54 

154 

56* 

?^l 

13^ 

qsj 

10% 

284 

5°, 

544 

60 

37i 
174 
179 
75 
■Si 

li 

'A 
24I 
27 
31 

in| 
10« 
27i 

39/ 
3l 

38/6 

40/ 

42/9 

32  6 

47  9» 
60/ 

.^8 
7A 

33  6 
19/91 
3tl 
3^ 
19  9 
189 

3  til 
1214 
82 


9/ 
51 

5l 

7/3 

IS 

s/ 
4/3 
45/ 
4/2 

29  6 

2/74 

27/ 
28/6 

35/6 

3/3X 

44/ 

396 

70/ 

4/74 

3/44x 

3/ 

3>/6 
6/9 
9/6 

40  6 

11,3 

56/ 

4/44 
37/9 
9/6 
31/3 
06/ 
47/6 

2/9 
I  6 

e/g 
4/14 
24/ 

2/6 

l3/-!t 

'4 
7/ 

5S 

ii 

7& 

3 

lit 

64 

3A 

34S 
lis 


Home  Railw.ays  have  shown  exceptional  strength,  Secause 
there  is  a  growing  feehng  that  they  have  reached  a  level  at 
which  they  must  in  any  conceivable  circumstances  be  a  good 
purchase.  Great  Western,  North-Western,  South-Western,  and 
Great  Northern  deferred  all  advanced  ij  to  2,  and  most  of  the 
others,  following  on  the  same  lines,  improved  anything  from  J 
to  |.  There  was  a  slight  weakening  towards  the  close,  but  it 
did  not  amount  to  much.  American  Railroads  showed  con- 
siderable strength  on  the  announcement  that  the  Government 
hfid  taken  over  control,  and  Chesapeakes,  New  York,  Ontario, 
and  one  or  two  others,  rose  several  dollars,  but  after  the  first 
outburst  of  enthusi.ism  the  market  dropped  back  into  its  usual 
state  of  lassitude.  International  Mercantile  Marine  in  this 
section  also  advanced  smart'y.  Canadian  Pacifies  were  weak, 
but  closed  above  the  lowest,  while  Grand  Trunks  were  con- 
sistently strong  in  connection  with  the  concession  as  regards 
increased  freights,  and  the  stocks  all  gained  several  points. 
Mexicans  were  firm  .at  one  time,  but  afterwards  relapsed  into 
dulness,  and  although  the  Argentine  section  showed  a  fairly 
bold  front,  nothing  much  was  doing,  and  the  changes  were  not 
of  importance.     S.an  Paulos  were  distinct'y  weak. 

Bank  shares,  after  a  quiet  opening,  were  better  supported  on 
the  dividends  which  have  been  announced  by  the  discount 
houses,  and  which  indicate  that  the  past  half-year  has  been 
an  extremely  profitable  one.  Most  of  the  leading  shares  put 
on  a  fraction.  In  the  Brewery  section,  AUsopps  took  the  lead 
with  gains  that  amounted  to  several  points,  and  City  of  Ix>ndon 
also  gained  aopreciably.  Guinness's  adv,anced  3  points,  although, 
judging  by  the  difficulty  of  marketing  the  goods,  it  seemed  as  if 
they  ought  to  be  suffering  more  /than  most  businesses  in  this 
line.  The  Egyptian  section  was  particularly  strong,  with  Salt 
and  Soda  and  National  Bank  of  Egypt  most  prominent,  but 
the  whole  list  was  quite  good.  Iron  and  Steel  shares  were 
irreeular,  but.  on  the  whole,  the  tendency  w.as  firm,  and  in  the 
Land  grouD  Hudson's  Bays,  Nigers,  and  Pahangs  all  showed 
strensth.  Shipping  shares  were  in  favour,  with  Indo-China 
and  P.  and  O.  most  in  evidence,  but  Prince  Line,  after  the 
recent  sharp  advance,  gave  wav  a  I'ttle.  Textile  shares  were 
scarcely  mentioned,  .^nd  in  the  Miscellaneous  Industrial  denart- 
ment  there  was  nothing  of  much  interest,  except  that  Peek 
Brothers  h.-'d  a  sharp  advance  on  the  capital  readjustment 
scheme,  and  Brunner,  Mond's  also  were  firm.  Cements,  on  the 
other  hand.  ea=ed  off  a  fraction. 

Oil  shares  were  mostly  irre<?ular,  a"d  without  miiz-h  bus-'ness 
in  any  direction.  Burm.->hs.  Mexirr^n  Ea<?!es,  and  "  Shells"  re- 
ceived some  sunnort,  but  North  Caucasian  and  oth^r  RuFsian 
issues  gene-^ally  had  nothing  to  bo.-'st  of.  Rubber  shares  were 
exreot'onally  firm  on  renewed  talk  of  cutout  rest>-ict'ons  and 
the  advance  in  the  orice  of  the  commoditv,  but  th"  am/^nnt  of 
business  coming  to  t>'e  market  'S  only  a  small  fra'-ticn  of  what 
was  experienced  in  the  halcyon  days  of  the  recent  boom. 


BOOKS    RECEIVED. 

Mining  I7ighest  and  Lowest  Prices,  Dividends,  &•€.,  jor 
Past  Six  Years.  Price  is.,  by  post  is.  id.  Publishers : 
Fredk.  C.  Mathieson  and  Sons,  16,  Copthall  Avenue,  London, 
E.C.  2. 

Northern  Coal,  Iron  and  Steel  Comfanies,  1917.  Issued  by 
Selby  and  Co.,  King's  Chambers,  Sheffield. 


LONDON    PRODUCE    MARKETS. 

The  v.iriom  markets  largelv  remained  without  new  fea'ure 
while  under  holiday  influence  during  the  greater  part  ol  ihe  week. 

Sugar  — This  market  continued  with  ut  change. 

Coffee — A  steady  tone  predomm  ited,  especially  with  respect 
to  ali  suitable  tiome-trade  descripiions.  and  mode  ate  inquiries 
were  in  force.     The  terminal  market  is  firm,  though  quiet. 

Cocoa. — No  auctions  were  held  during  the  week.  Private 
market  quietly  steady. 

Te/v — For  the  fair  quantities  of  Indian  and  Cevl'^n  offered  a 
fair  demand  prevailed,  but  prices  on  balance  were  subj  ct  to  some 
irregularity. 

Spick  -Pepp/^r  slow,  steady,  and  fair  bbck  Singapore,  spot, 
quoted  is  2d.  ;  Tellicherrv,  is  4H.  ;  Muntok.  is.  6d  Fair  Zanzi- 
bar cloves,  spot,  is.  8d.  Tapioca  dull.  Fair  flake,  spot,  6id.  ;  fair 
Penang  seed  pearl,  65s.  ;  medium,  65s. 

Rice  continued  in  demand,     (ieans  and  peas  unaltered. 

Hemp  firm  for  both  East  India  and  Chinese,  with  few  sellers. 

Shellac- General  trade  proved  quiet.  T.N.,  March  sold, 
330s. 

Gambier  quiet  but  steady.  Block,  to  arrive,  quoted  60s.,  c.f. 
and  i. 

Robber  met  a  good,  steady  inquiry,  and  rates  steadily  improved. 
Advices  from  ihe  East  and  also  America  were  of  a  stimulating 
nature.  Plantation,  spot,  crepe,  sold,  2s  6Jrl.  to  2S.  6Jd  ,  2s.  6d  ; 
January-March  2s.  6|d.  to  2S.  7d.,  2s.  6|d.  ;  February  March, 
2s.  7d  to  2s.  7j  1.  ;  April-June  2s.  7fd.  to  23.  8d.,  2s  7|d.  Ribt)ed 
smoked  sheet,  spot.  2s.  5J[cl.  to  2s.  sjd  ,  2s.  5jd  Fine  hard  Para, 
spot,  2s.  lod. ;  soft  fine,  23.  4jd. ;  and  ball   is.  gd.  per  lb. 

Corn  (Mark  Lane). — The  market  npe"ed  the  year  «iih  a  good 
demand  for  all  cere  Is;  Itte  rates  were  fully  maintained  Quo  a- 
tions  : — Wheat :  English  whites  and  reds  74-.  6d  per  qr  (504  lbs). 
Of  imported  descriptions,  No  i  N/irthern  Manitoba,  79^.  6d. ; 
Indian,  8is.  6d  t '  82s.  6d.  as  to  grade ;  La  Plata,  79s.  6d.  to  80s. ; 
and  Austral  an,  813.  6d.  per  496  lbs.,  all  landed  terms.  Flour  : 
English  country  straight  runs  (G.R.),  44s.  ^d.  per  ack,  ex  mil; 
Australian,  82^.  to  82s.  6d. ;  Japanese,  76s.  to  76s.  6d.  per  280  lbs. 
Barley  paringly  offered.  English  quoied  62s.  gd. :  Californian, 
87s.  to  88s.   per  448  lbs.,   landed.     Oats  firm.     English  quo.ed 


i6 


Zbc  Jnvestors'  TRevlew. 


January  5,  1918. 


45s.   3d.   per  336  lbs. ;  American   (London  controlled),  60s.  6d., 
landed,  per  320  lbs.     Maize  still  nominal  in  the  absence  of  offers. 

Cotton  (from  our  Manchester  correspondent). — The  market 
during  the  past  week  has  presented  a  quiet  appearance.  Bullish 
•entiment  has  prevailed  in  raw  cotton  circles,  and  prices  in  yam 
and  cloth  have  again  advanced,  record  rates  being  paid  in  many 
quarters.  The  general  outlook  does  not  show  mt'ch  alteration. 
There  seems  to  be  little  probability  of  lower  values  in  the  near 
future.  The  inquiry  in  piece  goods  for  abroad  has  been  on  a 
limited  scale,  and  local  merchants  have  not  been  at  all  disposed  to 
anticipate  future  wants  of  customer?  abroad.  Offers  for  India 
have  been  decidedly  scarce,  especially  with  regard  to  standard 
makes.     The   China   market    remains    disappointing,  and   recent 


CURRENT    PRICES    OF    CHIEF    ARTICLES. 
WEEK  ENDING    JANUARY  4.  1918. 


turers  are  rather  larger  than  a  few  weeks  ago.  Export  bundles 
have  moved  off  slowly.  Prices  in  Egypt  an  spinnings  have  gone 
against  buyers,  a  steady  demand  being  exptrienced  from  day  today. 


Laat 

Week. 


Ibta 
Wepk. 


■D{(ar— pec  owl. 
duty  I4(,  989 
polarisation 

TbIp'b  Ciibea 

Crushed 

Granulated  ..     .■ 

Ljrie'a  granulated 

Foreign;  granu- 
lated, brat  mark? 
f.o.b.,  spot 

GerixianCubol.o.b 

FrsQOh  Cube 

prompt 

CCTitalliaed,  Wesi 
India 

Beet,    88%    f.o.b 

tMk— «ec  lb.,  dut) 

Indian  Pekoe 
Broken  ,, 
Orange  „ 
Broken  „ 
Pekoe  S')uobong 
Ceylon  Pekoe  , 
Btoken  ,,    , 
Orange  „ 
Broken  „ 
Pekoe  Souchong 

OoeOA  —  pM  owl. 

duty  6d.  pet  lb 
Trinidad — pec  ow 
Grenada  . .  , . 
We«t  Africa..  .. 
Ceylon  Plantation 
CnayaquilAciba. . 
OefTee — pei     owt. 

duty  42/-  per  cwt. 
Baat  India    . 
Jamaica..     . 
Cosia  Kloa  ..     .. 
ProTialoni— 

Butter,  pec  cwt 
AuitrallaD  tineat 
Argentine     ..     .. 
Irmu  Cteameriea 
Dutch  dii>o..     .. 
Russian  Quest     ,. 
Paris  baskets 
Danish  finest 
Brittany     rolls  — 

doz. lb 

Baeon — per  cwt. 

Irish      

Continental,.  .. 
Canadian  . .  . . 
Amedoao  . .  . . 
Hama — pec  owt. 

Irish       

Canadian  . .  , . 
Amecloan       .     . . 

OhMie — pec  cwt. 

Dutch 

Canadian     ., 
English  Cheildac 
Wirts  loaf     . . 
New  Zealand 

Bic«— per  cwt. 

Japan 

Rangoon  a  stars . 

B^ga—pei  lao. 

English 

Irish      ..     .. 
Danish 

■p«Uer— 

G.O.B.  as  to  posi- 
tion     


£  a.    d. 


13 
'3 
6 
6 


nom. 
nom. 


369 
nom. 

s.d.  8.  d 

10-16 
I  0-2    1 

I   C-2     3 

I  3-»  ai 

HI  6 

I  O-I  6 

1  O-I  6 
10-13 

1  3-'  4; 

Hi  I  0 


d.  a. 
87  o-  9< 

85  0-  9I 
68  o-  77  0 


77  0-  94  0  77  0 


97  0  116  o 
77  0-120  o 
97  0-116  o 


i    a.  d. 


a  13 
a  13 
a  6 
a    6 


nom. 
nom. 


2    6 
nom. 


d.  8  d 


II- 1 
1  o-a 
1  0-2 

1   3-2 

ii-i 
iij-i 
1  0-1 
I  o-i 
1  0-2 

ii-i 


Last 
Week. 


s.  d. 
87  o 
85  o 
68  o 


105/-  109; 


252/ 
252/ 
252/ 
252/ 
nom. 
nom 
nom 

nom. 


172/ 

172/ 

172/ 

172/-180 

203/ 
162/-165; 
123/-163/ 

nom. 

nom. 

142/ 

noli). 

nom. 


ncm. 
a6    3 


d 
-99  " 


■77  f 
94  0 


105/-109; 


Floup— per  sack. 

Country  htcaight 

Runs  ex  Mill .. 


97  0-116  o 
77  0-120  0 
97  0  116  d 


aja/ 
aja/ 
252/ 
252/ 
nom. 
nom. 
nom. 

nom. 


17a/ 

172/ 

172/ 

lyaZ-ito/ 

203/ 
i62;-i65/ 
i25;-i65( 

129/6-160/- 
nom. 
142/ 
nom. 
not,;. 


nom. 
a6    3 


Wool— pec  lb. 
Australian 

Scouced  Merinc 
Scoured  Cr'ssbr'o 
Greasy  Merino  . . 
Greasy  Crossbred 
New     Zealand 

(scoured)  Merino 
Gceasy  Crossbred 
Cape  snow  white- 

indlarubberp.lb 

Plantation,      Spot 
Ccepe 

Coal — pec  ton 

Durham,  best  .. 

.Seconds        ..  ■- 
East  liartlepool.. 

Seconds       ..  .- 
Steauts,  best 

Seconds       ..  .- 

Lead — pec  ton. 
English  PIk..     •• 
i<'orelgn  soJt.,     .. 

Quiokillnr— per 

bottle  tirsthand 


Tin— pet  Ion 
English  Ingots 

y>o.    b^rs 
Standard  cash 
Tin  Plates, per  boj 
Copper — pet  ton 
English,     Toiigl: 

pec  ton 
13est  Selected 

Sheets 

Standacd      .. 

lute— pec  ton. 

Native    firsts    for 

shipment 

Oila— 

Unseed,  per  ton... 

Rape,  rehned ' 

crude  .... 
Cott'nSeuu.cru.  ■ 
Ditto,  refined  .. 
PeiroieumOil,!"-' 

Bibs. 
Water  White 
Oilseeds, Linse- 
Caicutla— pel  ton 
Spot 
Kape     


£    «.  d. 

nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom. 


nom. 
nom. 
nom 
nom. 

32  6 

a9  6 

r    s.  d 

nom. 

f3oi-£a9i 


This 
Week. 


r296-Aoo 
'a97-£3oi 

£294 

nom. 


nom. 
£ii9-£i23 

£■47 
£110-11 


i58-£63 
£71 
?66 

£67-£95 


39  0-43  o 

38  c-40  o 

39  0-41  0 


iC54-£50 


44/3 


40  o  43  o 

38  c-40  o 

39  0-41  0 


£u-£i° 


44/3 


i/7l 
1/84 


£  ».  d. 

nom. 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


o    a    5! 


nom. 

nom. 

nom. 

nom 
32    6 
29    6 

i      s.    d. 

nom. 

(CagJ-iaSi 


fa82-283 

£283-284 

£a8o 

aom. 


Bom. 
£ii9-£ia3 

£147 
£110-1104 


£58-£63 

£71 

r66 

£60 

£67-£95 
1/74 


ag  15 
£l9-lo£30 


Iron— pec  ton 

Cleveland  Cash  . 
Tobacco  —  dui 

uiiuianufaotiif' 

7/4toti;o  per  lb 
Maryland  &  O 

per  lb.  bend 
Viiginialea.. 
Kentucky  leai 
Latakia  . .  . . 
Havana..  .. 
Manila  ..  .. 
Cigars,  duty   lo/i 

per  lb. 

Timtior— Wooa 
Pitch  fine    ..    .. 

l..dldli      Ic. 

Tnrpen  tine- 
American  Spot  .. 

Copra— per  ton 

Malabar 

Cey  on 

F.M.S.  Singapore 
IF.M.    Straits 


nom. 

0  8  a  : 
07-01 
a  •  -5    I 

1  6    6    I 
nom. 

a/  upds. 


500/—  40- 
380/—  70. 


laS/ 


46  o 

46  p 

43  :'o 

45  10 


ag  15    0 

£29-io£30 


nom- 

1  8—2    I 

I    7 — 0  IX 

a  0 — 5    o 

6    «    6 

nom. 

3/  upds. 


3001—400; 
380/— 700/ 

ia6/ 


46  0 
46  0 
45  10 
45  10 


INDIAN  RAILWAYS. 


OKOSS 

TRArriC  FOR  WERE. 

OKOeS  TRAPriC  TO  DATE. 

Nahs. 

Week 
ending 

In.  or  deo. 

• 

In.  or  dec. 

Amount 

on  lait     1^ 
vear.      i^ 

Amotut 

on  last 
year. 

Rs. 

R«. 

Ks. 

Kb. 

Assam  Bengal 

Nov.    3 

».a3.535 

—     28,736 

5.94,7*9 

—    1.07,494 

Bars! 

„     10 

18,700 

—     49.300 

3,11,201 

Bengal  &N.-W.     .. 

>t        3 

3,28,680 

—     4''.046 

l5,ol,6«c 

—    1,64,616 

Bengal  Nagpur 

.,     10 

8,52.000 

4-  I.Aooo 

3.26,43.351 

+  39,36,507 

Bombay,  baroda  .. 

Dec.   22 

14,28,000 

—  1,91,000 

1.58,02,00c 

—    7,07,000 

Burma 

Nov,    3 

3,68,03 . 

—      14,681 

19,18,384 

—    3,30,078 

Delhi  Umballa 

Dec.   13 

f7,8oo 

-       ',385 

10,49,186 

+     '.70,315 

East  Indian..         .. 

1,     aa 

aa,K9,ooo 

-H       2J,000 

3,76,34,000 

Gt.  Indian  Penin.  .. 

..      '5 

34,76,600 

+    93,000 

2,28,10,200 

4-  11,34,013 

Luoknow-Bareilly. . 

Nov.     3 

35.738 

^■        8jo 

2,01,168 

*        23,801 

Madras      and       S. 

Mabratia  .. 

„      10 

9,50.003 

-1- 1,65,424 

J3,75.0«> 

4-    3,&2,4Co 

Nizam'sGd.  (Broad) 

Oct.    ay 

>.M,390 

•1-    15.874 

4,52.509 

-t-         5,3AO 

„        „     (Metre- 

Sept.  30 

51.953 

—     5,07a 

3,28,359 

4968^ 

Rohilkund  and 

Kiunaon  .. 

Nov,     3 

38,799 

+        4.347 

I,'».458 

*-         15.3>'" 

South  Indian 

.,     10 

6.75.575 

*      73,377 

17.3<.2l4  +     a,90,3j; 

t  April  I. 


t  October  i. 


TRAMWAY  AND  OMNIBUS.— HOME. 


' 

£ 

t 

£ 

i. 

Bristol 

Dec.28 

13,136 

+ 

1.206 

t 

575.653 

■t-  48.54S 

Dublin  United 

,.    21 

7,009 

■t- 

457 

t 

343-395 

+  33.38J 

HaslinK?  and  DIst.. 

..    25 

990 

■(• 

61 

t 

63,703 

+    9.99 ' 

Isle  ol  Thanet 

Oct.  13 

195 

— . 

141 

♦ 

350 

—     33* 

Lancashire  United.. 

Dec  26 

3,474 

-1- 

550 

t 

132,565 

4-     a8,ia« 

Provincial    . . 

Oct.  27 

2,315 

■¥ 

201 

* 

9,138 

-I-          507 

Yorks.  (Wst.  Rdng.) 

Dec. 30 

a.527 

+ 

504 

t 

:it,5S4 

■¥      3^342 

•  From  Oct.  1. 


f  From  Jan.  1. 


TRAMWAY  AND  OMNIBUS.— FOREIGN   AND  COLONIAL. 


Alabama  Power  .. 
Aofjlo- Argentine  . . 
Auckland  Electric. . 
Brazilian  Traction  . 
Brisbane  Elec.  Inv. 
British  Columbia  .. 
B.A.  Lacroze 
Burmah  Hlectrio  .. 
Calcutta 
Carthagena  and 

Herrerias  . . 
Cortloba  Light 

P.  &T 

HoDgkong   .. 
La  Plata 

Lima 

Madras  Electric    .. 

Manila  EUctric 

Meiico 

Rangoon 

Singapore  Electric 

Toronto 

United  of  Monte  V. 

Vera  Cruz   .. 

Winnipeg    . . 


£ 

Oct. 

1 

113,018 

Dec. 

31 

63.998 

Oct. 

36 

22.308 

Nov. 

M7,693,ooo 

Oct. 

33.580 

Nov. 

»141.3C9 
39.679 

,, 

I 

R5.27,;6l 

Dec. 

23 

Rs.70,728 

.. 

b 

4.424 

Oct. 

12,481 

Nov. 

•i 

12,391 

Deo. 

b 

4.603 

Nov. 

16,965 

Dec. 

15c 

Ra.  35,1 12 

Aug. 

8 

65.467 

Nov. 

« 

»2is,25fi 

,, 

» 

5.158 

Oct. 

27 

•  12,357 

Nov. 

i 

•42^556 
31,060 

Sept 

9 

56,400 

Nov. 

186,888 

£ 

22,072 

5,895 

880 

M535.000 

820 

•31,773 

546 

R8.937 

Rs.a,44o 

^■         3,025 

—  1,052 

-  •1.159 
-t-  169 
+  1,998 
4-  Rs.3,174 

■y      4,667 

—  J  108,669 

-I-        325 

—  »;&. 

-  •8,751 
'r         2,656 

-  •14.744 


Ms. 

f 

12 

1,253.083 

* 

3,720,63^ 

a 

92,118 

11 

MS.ti3ieoo 

10 

328,420 

4 

•  433.464 

5 

189,575 

82,884 

* 

Rs.3334834 

* 

49.566 

7 

95.376 

•597.598 

13 

48,962 

11 

159.413 

* 

Rs.800,674 

8 

547,492 

« 

$3,193,106 

49.313 

• 

•  529.661 

11 

•5,033, '75 

1 

31,060 

8 

464,400 

11 

•748,976 

£ 

+  3fi,34» 
+  48,331 
+  7.832 
4-  M6558000 

-  2, coo 

4-     ^39,124 

-  1,214 
4-    Rs.4,844 

-  Rs.4,421 

+       «9.77& 

-  3,640 

-  •39.37r 

-  1873 

y  4,850 
4-  Rs.73.566 
-t-     70,625 

-  %i<jn,viT 
+       1.975 

■1-      •l3,54c> 

+  •339,133. 
■I-       2,656 

-  •3*7.782 


f>38  days.       •  From  Jan.  i.      i  Nett,       a  From  July  i.      c  Two  week*. 
FOREIGN   RAILWAYS. 


Alooyand  Gandla  . . 
Antofagasta  (Chili) 
Arauco 

Argentine  N.B. 
Bilbao  R.  and  Canta 
Bolivar 
Brazil 

Brazil  Gt.  Southern 

B.  Ayces  &  Pacific 

Do.  Central 

Do.  Gt.South'n 

Do.       Western 

Central  Argentine. . 

C.Ur'g'ayof  Mte  V. 
Do.  kast'n  Ei. 
Do.  North'n  Ex. 
Do.  West'n  Er 

Cordoba  Central   . . 

Costa  Rica   . 

Cuban  Central 

Dorada  Extension. 

Egyptian  Delta 

Entre  Rios  .. 

French  Sante  F6  . 

Gt.  Soutii.  of  ^pain 

Gt.West.  ofBrazil. 

Havana  Central 

Inter,  ol  C.  Amer.. . 

La  Guaira  and  Car 

Leopoldina  .. 

Midland  Uruguay  .. 


letters  from  ShaiiKhai  refer  to  the  unsettled  trade  con- 
ditions which  prevail  in  the  Far  East  generally.  Fewer  orders 
have  again  been  booked  for  Egypt,  and  shipping  facilities  to  that 
outlet  remain  very  irregular.  Theie  has  not  been  much  activity 
for  South  Ameiica.  Makers  of  heavy  materials  continue  to 
derive  support  from  Government  contracts.  Finishing  and  printing 
cloths  remain  deeply  sold.  American  yarns  lor  home  use  are  dis- 
tinctly dearer  on  the  week,  but  tbe  higher  rates  have  been  resisted 
by  buyers,  the  turnover  being  comparatively  small.  Users  have 
again  pressed  spinners  for  fuller  deliveries  against  old  contracts. 
It  is  said  that  stocks  of  twist  and  weft  in  the  hands  of  manufac- 


Mogyana 
N.W.t" 


.  of  Uruguay  .. 
Nitrate 

Paraguay  Central 
Paultsta 
Pecuviao  Cocpn 
Salvadoc 

Stale  of  Bahia  S.W. 
S.  l^auiu  (brazilian) 
Sorocabana.. 
Taltal.. 
United  of  Havana.. 
West'n  of  Havana. . 
Zafra  and  Huelva 


Dec.  27 

■.  33 
Nov.  3 
Dec.  39 
Oct. 
Nov.  • 
Aug.  • 
* 

Dec.   22 

Sept. 

Dec.  30 

30 

..       ag 

..        29 

..       29 

39 

•■        39 

39 

Nov.     3 

Dec.  39 

Nov. 

..       ao 

Dec.  29 

Aug. 

Dec.   15 

39 

Nov.  17 


Dec.  29 
Nov. 
Aug, 
Nov. 
Dec. 
„       33 
Aug.     • 
Nov.     • 
Dec.   29 
Nov.     • 
Dec.   30 
• 

Nov.     • 

Dec.  39 

..      29 

Nov.    • 


Ps. 


£ 

49,540 
15.000 
10,300 
3,9' I 
12,000 
M4,432,OJO 
Vll-s.38,300 
108,000 
18,317 
126,000 
58.000 
126.9X1 
16,091 
6024 
3.131 
3,353 
35.500 
3.558 
14.343 
8,000 
10.177 
19,600 
133,000 
25.357 
17.800 
8,115 
11.713 
6.500 
36,183 
•5,745 
M3, 348,000 
«30  500 
30,191 
3,550 
M4,904,ooo 
S  1,034,790 
•  18,80a 
M  85 ,000 
4'.4a» 
Ma,i07,ooo 

39,130 

54.965 
8.311 
'0.538 


e. 

-Ps.  6,000 


Ps 


•^  4655 
•t-  3.500 
+      4.300 

—  •  .426 

-t-      4.820 

-c  M532,287 

-h  Ik)  2,080 
-t-      18,000 

-     7.787 

-h  11,000 

4-  12,0O3 

4-  38,200 

4-  1,630 

■I-  f95 

—  33 

—  8> 

9,900 

1,190 

3.385 

300 

1,693 

9,100 

39,099 

— FS35,057 

4-        4,600 


1.493 
5.238 
500 
6,305 
1.407 
■I-  US26,674 
4-      43,554 

—  1,356 
■I-  40 
4-M1137374 
+  S  108,970 

—  •12,300 

—  M45,ooo 
-I-  12,145 
4-  M  334. 206 
4-  13,142 
4-       14,080 

+     1.958 

—  40^ 


£ 

Ps.55a,l70 

2,192,430 

117.500 

:o3,6oo 

35.861 

55.005 

M3194S000 

« 325.937 

1,728,000 

70,9  "5 

2.423,705 

1,  42,000 

2,252,300 

460,105 

121,671 

78,071 

53,346 

76  ,680 

55.355 

311.^93 

98,7x1 

162,393 

330400 

900,3  i6 

PS4144,976 

7  6.150 

14'',563 

240451 

80,500 

1,568,51- 

67,448 

Ml459l,;xx 

1126,674 

737,<09 

72,3» 

VI  19990,001 

S  4,987,180 

$430,826 

M  1,031,000 

i,6j6,824 
4      16,983 
131,318 
1,028,615 
183.707 
123.820 


— Psioi,l3> 
4-      391.110 

4-       at,2oo 

+        3>.39» 

—       IO.94& 

18,301 

+  M37,9S74 

Ml  3^67 

384,000 

4,387 

33a.54» 

3i2,coo. 

633  000 

134.560 

9.227 

24,036 

3,703 

>9-40i 

36.9^ 

71,787 

7.500 

38.492 

39.500 

173.429 


4'Ps4l8,I03 
*■  156.350 
t-        30,988 

-  34.342 

—  4,7fO 
4-  256,801 
•r  7.537 
4  M4O.707 
4-  $4,696 
4-  88,443 
V  7.210 
4Ml72,ooo 
•t-S  473,530 

-  •98.759- 

—  M66,ooo 

4-  132.042- 
4M1735303 
4-  35,590- 
•■  197.493 
4-  36.B37 
3.T2 


•Months,  t  From  Jan.  I.  t  From  July  t.    c  Netu    1 13  days,    a  todays. 


January  5,  1918. 


^be  Jnvestore'  TRevlew. 


17 


COLONIAL  RAILWAYS 

Ustra 

Aug.  'c 

£ 
54.914 

—      12,287 

to 

706,175 

£ 
+       4.297 

Canadian  Northern 

Dec.  21 

»733,300 

—  467,400 

►  20,991, 700 

+  8229,400 

'Canadian  Paoifio   .. 

».    2t 

»3,05i,ooo 

+    »72,ooo 

»l483i8,coo 

+811791000 

G:.Trk.  Main  Line 

„     28 

332,934 

+      21,543 

10,719,745 

+    899,047 

Gr.  Trk.  Western.. 

„  28 

64,911 

+      30,132 

2,011,384 

+    124,093 

Oetroil  G.  H.  &  M. 

„  28 

21,5  J2 

+        6.036 

698,265 

+        23,931 

•Gr  Tk  Pac  Prairie  So 

„     21 

23.318 

-        3,096 

722,214 

f       169,000 

MasbonalanJ 

Sep.  • 

47,670 

—        9.630 

47.670 

-         9.630 

MId.of  Westn.  Aus. 

Oct.    • 

7,810 

+           931 

25,356 

+           1.307 

New  Cape  Central. . 

Mov.  17 

2,071 

+            572 

85.374 

•i-        I3.27i 

Kbodesia 

Sept.  •(• 

78,617 

—      11,622 

12 

i.oii,76( 

+        78.61 1, 

♦Months.         :  July  1.         ♦  Jan.  i.       c  From  Oct.  i. 

MOW  7 

HLY    STATEMENTS. 

NETI 

BARMINOS  FOK   WOMTH. 

NBTT  KARNINOSTO  OATK. 

NAUB. 

Month, 

Amonnt. 

In.  or  Dec 
on  last  yeai 

II 

Amount. 

In. 01  Dec. 
on  last  year 

Dols. 

Dols. 

Dols 

Dols. 

Atohlson  T.  &  S.  Pi 

Sep. 

3.933,000 

—    850,000 

9' 

37.525,000 

+  4,302,000 

fctlantlo  Coasl  Line 

757.000 

+    132,000 

9 

8,260,000 

+     337.000 

Baltimore  &  Ohio  . . 

•c't. 

7tS,ooo 

—    581.00C 

10 

24,8:0.000 

—  1,210,000 

Canadian   Northern 

Nov. 

754,700  I—   495,300 

5 

3,269,8  0 

—  2.2  12,500 

Canadian  Pacitic   . . 

,, 

5,258,000 

—    306,  .00 

11 

42,635,00c 

—  2,820  000 

Chesapeake  &  Ohio 

Oct. 

1,164,000 

—   218,000 

9 

10.^29,000 

—  1,172,000 

Chicago  &N.W.    .. 

J, 

2,634,000 

-    4,4,>oo 

9 

19,483,00.1 

—  2,498,000 

Chicago  Burl.  &  Q. 

Sep. 

3,563,000 

—    809,000 

9 

31,552.000 

+      794  000 

Chicago  G.W. 

Oct. 

188,000 

—    17^,000 

9 

4,273,000 

—     746,000 

Chicago  Mil.  &  S.P. 

„ 

1,599,000 

—  1,525,00c 

10 

17,(98,000 

—  4,550,000 

Chicago,  Rock  I.&P. 

Sep. 

1,664,000 

—    359000 

9 

15.157,000 

-  1,977,000 

Colorado  &Soutberu 

476,000 

—      47.000 

9 

9  339.000 

+      719.000 

Cnba 

Oct. 

'•9,465 

—      56,433 

5 

671.275 

—      180,123 

Delaware*  Hnd.  .. 

Sep. 

673,000 

+        2,000 

9 

5,002,000 

—     893,000 

Oanver  &  Rio  Gran. 

742,00c 

—    182,000 

9 

5.741.010 

—     878,000 

Erie 

832,000 

—    725,00- 

9 

8,094,000 

-  5.877.000 

Gr.Tr.  Main  Line.. 

Nov. 

/:86,2oo 

—£128,600 

11 

£1,9117,300 

—  t'627,900 

Grand  Trunk  Westn 

Ij 

6 f 15,650 

—     fl,950 

11 

£35.450 

-  £362,400 

Detroit G.H.&  Mil.. 

6  f  61, 700 

-     fl,i  0 

II 

£67,700 

-    £99,900 

Gl.  Northern 

Sep. 

2,636,000 

—   859,000 

9 

17,196,000 

—  2,282,000 

Illinois  Central 

Oct. 

1,852,000 

+     135,000 

10 

16.073,000 

+  2,999,000 

Kansas  City  Southn. 

J, 

351.000 

—      77,000 

9 

3.405,000 

+      657,000 

Lehigh  Valley 

Sep. 

851,000 

—    231,000 

9 

7,875,000 

—  1,560,000 

Louisville  ANashvl. 

l,472,(x)o 

—    114,000 

9 

14,070,000 

—     250,000 

Minn. S.P.  (Soo)§  .. 

j^ 

911,000 

—    316,000 

9 

7,054,000 

—  2,763,000 

Miss.  K.  &Teias  .. 

,, 

76>.,ooo 

+        2.000 

9 

5,503,000 

+  2,344,000 

Missouri  Pacillc    .. 

^^ 

1,630,000 

—       9,000 

9 

15  523,000 

+   1, 111,000 

•NewYorkCeot.&H. 

^ 

4,955,000 

—1,221,000 

9 

.36,447.000 

—11579,000 

N.Y.  N.Havenirt. 

Aug. 

2,061,000 

—    305.0OV 

8 

13,916,000 

—    970,00a 

NewYoikOnt.&W. 

Oct. 

150,00c 

+      69,000 

10 

2,019,000 

—       45,000 

Norlolk  &  Western. 

Sep. 

1,861,000 

—    125,000 

9 

16,005.000 

—  1,820,000 

^m            Northern  Pacific   .. 

,, 

2,388,000 

—    957.000 

9 

21,433,000 

—    31,000 

^■[           Pennsylvania    East 

^H                and  West  Lines..  Oct. 

8.433,000 

—1,600,000 

10 

81,101,000 

—  13218,000 

^K            St.  Louis  &  San  P.. 

"iug. 

1,939.000 

+    464,00.J 

2 

3,576,000 

+  1,154,000 

^B           .Seaboard  Air  Line.. 

487,000 

—      34,000 

8 

4,ao6,ooo 

+     176,000 

^H           3ouLtjern 

Oct. 

3,104,000 

+    671,000 

4 

9,324,0^0 

+  1,748,000 

^H           Southern  Pacitio    .. 

ji 

7,077,000 

+  1,673,000 

10 

5, ,111,000 

+  8,294,oo» 

^■1           Union  Pacitic 

5,408,000 

—    389,000 

10 

35,733,000 

—  1,644,000 

^K           Wabash 

Nov. 

1,2  4,000 

—    134,000 

:o 

10,269,000 

—      160,000 

^H                   i  Includes  VViscc 

nsin  Cer 

iral.     ♦  i..ross  H.irmin!s      t 

burptus.    b 

Deficit. 

Insurance    News. 

Preliminary  figures  have  been  issued  by  several  com- 
panies with  regard  to  the  new  business  transacted 
during  the  past  year.  The  London  Life  Association  is 
able  to  announce  a  further  large  increase  in  its  nett 
new  business,  assurances  having  been  granted  for 
^'905,428,  as  compared  with  ;£^79i,030  in  1916,  and 
;£,'502,9io  in  1915.  In  the  case  of  the  Equitable  Life 
Assurance  Society,  however,  there  was  a  considerable 
falling  off  in  the  volume  of  new  business,  the  total 
being  ;^"2i9,ooo — or  a  decrease  of  ;^io9,ooo.  For 
1915  the  total  was  ;^276,ooo.  This  society's  claims  by 
<leath  for  the  year — including  war  claims — were  smaller 
to  the  extent  of  about  ;^7o,ooo,  at  ;^300,ooo,  including 
Ijonus  additions.  For  19 15  the  claims  came  to  ;^364,ooo, 
and  for  191 4  to  ;^300,ooo. 

The  fact  that  with  one  exception  the  dividends  de- 

L-clared  by  the  leading  insurance  companies  during    the 

jyear  now  ended  were   all   maintained  at   the    previous 

Year's  level  is  sufficient  to  account  for  the  stabilitv  that 


has  characterised  the  market  in  insurance  shares.  Lately 
their  attractiveness  as  investments  has  resulted  in  an 
improvement  in  market  values,  and,  according  to  the 
Bankers'  Magazine's  useful  compilation,  their  list  of 
representative  insurance  shares  exhibited  an  apprecia- 
tion of  over  14  per  cent,  as  compared  witJi  values  at 
the  close  of  1916.  Some  branches  of  the  business  have 
greatly  benefited  by  war  conditions,  although  the  life 
offices  have  had  to  contend  with  many  disadvantages. 
The  City  Equitable  had  an  especially  favourable  experi- 
ence, but,  on  the  other  hand,  the  Sun  Life  had  to  re- 
duce its  distribution,  as  there  was  no  bonus  forthooming 
out  of  the  quinquennial  valuation  last  year. 


Wnat    Balance    Sheets    Tell. 

R.     ANO      J.      DICK,     LTD. 

A  very  substantial  improvement  took  place  in  the  position  of 
this  Glasgow  firm  of  manu£acturer.s  of  machinery  belts  and 
boots  and  shoes  during  the  financial  year  ended  August  31  last. 
Gross  profit,  after  providing  for  excess  duty,  has  gone  up 
;fs6,ooo  to  ^174,600,  and,  after  providing  for  income-tax,  de- 
preciation, and  directors'  fees,  there  is  ^(,'44,300  more  at  ;ii37,90o 
available.  The  distribution  on  the  ordinary  shares  is  raised 
from  12  per  cent,  to  14^  per  cent.,  ^30,000  more  at  /40,ooo  is 
allocated  to  reserve,  and  ;^5o,ooo,  as  against  ^35,000,  is  written 
off  goodwill,  extinguishing  that  item  from  the  balance-sheet. 
There  then  remains  ^12,400  to  go  forward.  The  increased 
business,  and  reserve  and  depreciation  accretions,  are,  n^dless 
to  say,  reflected  in  balance-sheet  item  movements.  Stocks  are 
;^26o,ooo  up  at  ;,f784,40o,  cash  is  ^^45,800  down  at  ;£'3,40o,  and 
sundry  debts  due  by  the  company  and  reserves  appear  at 
^294.35«.  an  increase  of  /i29,83o.  One  could  get  a  better  idea 
of  the  position  if  these  two  latter  items  were  given  separately, 
but  the  company's  liquid  resources  seem  to  be  ample  enough. 
The  report  states  that  over  90  per  cent,  of  the  company's  output 
is   now  used  for  purposes  of  munitions. 

ARNISTON  COAL  CO.,  LTD, 
Want  of  shipping  facilities  materially  restricted  the  output  of 
this  colliery,  and  costs  through  advances  in  wages  and  increase 
in  prices  of  furnishings  and  timber  were  materially  higher. 
After  allowing  for  war  taxafTon  profit  comes  out  at  ;^22,840,  as 
compared  with  £S5'7S°-  A  year  ago,  however,  ;f8,ooo  was 
written  off  for  plant  depreciation,  and  ^20,000  for  postponed 
repairs,  and  as  the  only  earmarking  this  time  is  ;^io,ooo  for 
plant  depreciation  the  decrease  in  the  amount  available  is 
reduced  to  ;if  15,000  at  ;^ii,i6o.  The  payment  of  the  ordinary 
dividend  of  25  per  cent.,  free  of  tax,  compels  encroachment  upon 
the  amount  brought  in  to  the  extent  of  ;^2,96o,  but  the  carry 
forward  still  amounts  to  the  substantial  sum  of  ;£'22,64o.  Total 
trading  assets  amount  to  .li^ 93,570,  and  current  liabilities  and 
dividend  disbursements  to  ,^38,340.  The  loans  on  debenture 
amount  to  j^'12,500,  and  the  company  will  at  the  earliest  possible 
moment  have  to  expend  considerable  sums  on  postponed  repairs, 
but  the  liquid  resources  seem  to  be  ample  enough  for  immediate 
requirements. 

COMMERCIAL  BANK  OF  LONDON,  LTD. 
Modest  progress  is  recorded  by  this  small  bank  in  the  fifteen 
months  to  June  30  last,  and  the  position  begins  to  look  decidedly 
healthier.  Gross  profits  amounted  to  .^33,140,  against  ;{i6,740 
in  the  year  to  March  31,  igi6,  and  the  nett  profit  comes  out  at 
;£i9,ooo,  against  ;^i,83o.  This  allows  ot  the  payment  of  two 
dividends  on  the  preference  shares,  and  leaves  ;^I5,740  to  be 
carried  forward.  Current  and  deposit  accounts  amount  to 
^37,700,  against  .1^5,450,  loans  against  bills  receivable  and  in- 
vestments have  increased  ;^i7,ooo  to  ;£i54,"oo,  while  sundry 
creditors  and  other  adjustments  are  now  ;^358,650,  against  less 
than  ;^2,ooo  in  the  previous  accounts.  Cash  in  hand  and  at 
call  amounts  to  £e,o.2^o,  an  increase  of  ;f3i,ooo,  investments 
have  risen  from  ;^22o,ooo  to  .^531,000,  and  advances  are  up 
/ioo,ooo,  /i32,64o,  but  bills  receivable  are  ;^25.ooo  lower  at 
;^3o,52o.  There  is  no  reason  why  the  bank  should  not  .serve  a 
useful  purpose   in  a  modest  way. 


TD- 


STANDARD  BANK  OF  SOUTH  AFRICA,  L 

Bankers  to  the  Government  of  the  Union  of  South  Africa  in  Cape  Province ;   to  the  Imperial  Government  in  South  Africa  and  to  the  Administration 

of  Rhodesia. 

Subscribed  Capital    ...   £6,194,100     I     Reserve  Fund     £2,000,000 

Paid-up  Capital £1,548,525     |     Uncalled  Capital         ...    £4,6  75,575 


WM.    REIERSON  ARBUTHNOT,  Fsq. 

SI  R  DAVID  M.  BARBOUR,  K.C.S.I.,  K.C.M.G. 

ROBERT  E.  DICKINSON,  Esq. 


Board      of      Directors. 

JAME--  FAIKBAIRN  FINLAY,  Esq.,  C.S.I. 
HORACE  PKEL.  Esq. 
WILLIAM  SMART,  Esq. 


Rt.  Hon.  LORD  SYDENHAM,  G.C.S.I., 

G.C.M.G.,  G.C.I  E.,G  B.E. 
H.  L.  M.  TRITTON,  Esq. 


Head  Offices   lO  GLEI^ENTS  LANE, 

New  York  Agency:— 68,  WALL  STREET,    Over  250 

EVERY  DESCRIPTION  OF  BANKING  BUSINESS  transacted  with 

the  Cape  Province,  Natal,  Orang  Free  sIhic,  Transvaal,  Rhodesia, 
Nyasaland.  East  Africa  Protectorate,  tJganda,  Zanzibar,  Portuguese 
East  Afric  i ,  South-West  Alric  >  Protectoraf,  and  the  Belgian  Congo, 
and  with  the  Bank's  Agencies  in  New  York  and  elsewhere. 

CURRENT  ACCOUNTS  are  opened  on  the  usual  terms. 

DEPOSITS  RECEIVED  for  fixed  periods  at  rates  which  may  be  ascer- 
tainrtl  on  applit^ation. 

BILLS  NEGOTIATED  AND  COLLECTED. 

Ti'e  'ificm  of  III-  "ank  ait  bouiil  ml  to  disclose  the  transactions  of  any 


LOMBARD  STREET,  LONDON,  E.C.  4. 

Branches  and  Agencies  in  South  and  East  Africa. 

MAIL  AND  TELEGRAPHIC  REMITTANCES  ma  e. 

LETTERS  OF  CREDIT  AND  DRAFTS  granted  on  the  branches  and 

Agencies  of    he  Bank. 
THE  BAVK  ISSUES  CIRCULAR  LETTERS  OF  CREDIT  available 

in  all  parts  of  the  world. 
COMMERCIAL  LETTERS  OF  CREDIT  ISSUED. 
PURCHASE  AND  SALE  OF  STOCKS  AND  SHARES  effected. 
DIVIDENDS,    'NNUITIES.  &c  .  received. 
EXECUTOR  AND  TRUSTEE  Business  undertaken. 
of  its  customers  FRAVCl.S  SHtPTON,  Lonlon  Mann^er. 


i8 


Hbe  investors'  TReview 


January  5,  1918. 


DIVIDENDS     ANNOUNCED, 


Alexanders  and  Co. — Directors  recommend  dividend  for  final 
half-year  ai  rate  of  lo  per  cent,  per  annum  00  ordinary  shares, 
less  'ax.  and  a  bonus  of  2s.  per  share,  free  of  tax,  carrying  forward 
about  ;f23.ooo. 

Banco  ce  Chile.— At  8  per  cent,  for  half-year  (or  16  per  cent. 
per  annum). 

Buliit  R.ijah  Rubber.  — Interim  of  20  per  cent.,  less  tax,  making 
30  per  cent,  to  date,  on  account  of  year  ending  March  31,  1918, 
the  same  as  a  year  ago. 

Central  BahidFtailway  Trust. — On  the  "  A  "  certificates  at  ^4  per 
cent,  p.  r  annum,  and  on  the  "  B"certificaiesat  ;f  i  los.  percent,  per 
annum,  less  tax. 

General  Life  Assurance. — Half-yearly  at  rate  of  10  per  cent,  per 
annnm  is  now  payable. 

Giant  Mines  of  Rhodesia. — Interim  of  gd .  per  share,  less  tax. 
Warrants  will  be  posted  on  Jan.  15. 

Hunters,  the  Teamen,  have  declared  an  ordinary  interim  divi- 
dend of  5  per  cent,  (actual),  tax  tree. 

S.  H  ifTnung  and  Co.,  Ltd — Interim  at  rate  of  5 J  per  cent,  per 
annum  on  the  participating  preference  shares,  payable  Feb.  i. 

Imperial  Tobacco  Co  of  Canada. — Final  of  i  per  cent,  for  year 
ended  Sept.  30,  and  an  interim  of  ij  per  cent,  for  current  year  on 
ordinary  shares. 

John  Barran  and  Sons.— 8  per  cent.,  free  of  tax,  on  the  ordinary 
shares  for  the  year  ended  Oct.  31.  after  deduction  of  the  interim 
already  paid,  the  same;  forward,  ^6,137,  against  ^6,340. 

Royal  Dutcii  Petroleum. — Interim  01  15  per  cent,  for  the  year 
1917,  payable  Jan.  15.  Coupon  No.  37  will  be  paid  by  Messrs. 
N.  M.  Rotnschild  and  Sons  at  the  exchange  of  the  day  on 
Amsterdam,  the  same  as  year  a^o. 

Manchester  Dry  Docks. — iSJ  per  cent.,  free  of  tax,  for  past 
year  ;  the  1916  dividend  wa^  at  same  rate,  but  only  the  interim  of 
5  per  cent,  was  paid  free  of  tax. 

New  Transvaal  Chemical.— Final  for  year  ended  June  30,  1917, 
of  3  per  cent.,  less  income-tax,  on  cumulative  first  preference 
shares,  and  of  4  percent.,  less  tax,  on  cumulative"  A"  preference 
shares. 

Rio  de  Janeiro  Flour  Mills  and  Granaries. — Final  of  is. gd.  per 
share,  and  a  bonus  of  is.  per  share,  both  free  of  tax.  A  year  ago 
the  final  was  the  same,  but  no  bonus  was  paid, 

Robinson  Deep. — Declaration  of  dividend  of  4s.  per  share  on 
"  A  "  shares  due  for  six  months  ending  Dec.  31  is  postponed. 

Toronto  Railway.— On  ordinary  shares  of  2  per  cent,  for  quarter 
ended  Dec.  31  last. 

Trustees  Corporation —Interim  on  ordinary  stock  at  rate  of  4 
per  cent,  per  annum,  less  tax,  for  the  half-year  to  Nov.  30,  payable 
on  Jan.  14  ;  a  year  ago  the  same. 

Union  Discount  Co.  of  London —The  directors  recommend  for 
half-year  ended  Dec.  31  at  rate  of  13  per  cent  per  annum,  less 
tax,  with  a  bonus  of  is.  per  share,  free  of  tax,  carrying  forward 
/"6,549. 

Welgedacht  Exploration  Co.— gd.  per  share  ;  forward  ;f  3,622. 


OILFIELDS    PRODUCTION. 


Baku  Russian  Petroleum.— Week  ended  Dec.  8,  67,645  poods. 
Black  Sea  Amalgamated.— Week  ended  Dec.  22,  300  tons. 
International   Russian.— From   well  on  plot   107  for  14  weeks 
ended  Dec.  i,  302  tons. 

Maikop  Combine.— Week  ended  Dec.  22,  382  tons. 

Maikop  Orient.-Plot  435a,  Well  3.  week  ended  Dec.  22,  14,500 

Maikop  Pipeline  and  Transport. -Received  for  pumping,  week 
ended  Dec.  22,  300  tons.  r      t-    &• 

United  British  of  Trinidad —Week  ended  Dec.  26,  430  tons. 


A  PRACTICAL  PENSION  POLICY 
FOR    WOMEN    WORKERS. 

"After    tlu    heat   and   turmoil   of  the   day. 
The  sheltered   haven  of  the  peaceful  years." 


a 


A   leaflet   entitled 

AFTER 


»i 


giving  full  particulars  of  a  new   and  attractive 
scheme  will  be  sent  post  free  on  application  to  the 

NATIONAL    PROVIDENT   INSTITUTION, 

48  GRACECHURCH  STREET,  LONDON,  E.C.  3. 


American  Business  Notes. 

As  was  stated  in  this  column  sonic  w(  eks  ago,  Pre- 
sident Wilson  was  about  to  take  control  of  the  railways, 
and  at  the  end  of  the  year  accordingly,  he  assumed, 
as  head  of  the  United  States  Executive,  the  complete 
power  over  the  whole  railway  system  of  the  United 
States,  some  250,000  miles  long.  The  present  several 
executives  are  not  to  be  displaced,  but  a  Government 
Committee  will  supervise  them,  and  so  arrange  the 
working  of  the  lines  that  the  utmost  war  efficiency  will 
be  given  to  them.  It  is  impossible  to  .say  what  the 
ultimate  fate  of  the  lines  will  be,  but  we  may  be  quite 
sure  that  railway  working  will  never  again  pass  back  to 
the  irresponsible  monopoly  position,  and  occasionally 
antagonistic  working,  which  prevailed  Ijefore  the  war. 
At  the  head  of  the  official  committee  is  Mr.  McAdoo, 
the  able  Secretary  to  the  Treasury,  or  Chancellor  of  the 
Exchequer  for  the  Republic,  who  is  an  engineer  by 
profession  as  well  as  a  financier  through  his  political 
experience.  These  railways  belong  to  nearly  1^500,000 
of  investors,  and  their  average  nett  income  for  the  past 
three  years  has  been  .;£^i89,453,ooo. 

Appnrently  the  owners  are  lo  be  guaianlecd  a  fixed 
dividend  on  their  unsecured  .share  capital  of  not  less 
than  the  average  permitted  by  their  iielt  revenue  for  the 
past  three  years  ;  but  even  if  they  had  been  asked  to 
forego  some  portion  of  the  revenue,  it  was  imperatively 
necessary  that  the  management  should  be  synchronised 
and  consolidated.  Already  the  congestion  has  become 
intolerable.  As  the  New  York  Timer,  has  fXiinted  out. 
100  steamers,  with  an  aggregate  capacity  of  1.000,000 
tons,  are  being  held  up  in  New  York  harbour  through 
lack  of  coal.  This  number,  the  same  paper  alleges,  is 
increasing  daily.  Every  pier  in  the  East  and  North 
Rivers  is  occupied.  Twenty-two  of  the  detained  ships 
are  French  owned,  and  have  been  waiting-  for  coal  since 
November  24.  Mr.  Garfield,  the  Fuel  Dictator,  in  in- 
terviewing the  President,  is  reported  to  have  explained 
to  him  that  the  shortage  of  available  coal  between 
.August  8  and  November  24  amounted  to  more  than 
20,000,000  tons,  and  was  entirely  caused  by  car  .short- 
age. That  car  shortage  was  no  doubt  in  great  measure, 
if  not  wholly,  the  product  of  the  sectionalised  working 
of  the  railways.  The  cars  went  at  haphazard  from  one 
system  to  another,  and  were  not  promptly  returned,  or 
they  were  diverted  into  sidings  waiting  for  local  traffic, 
or  they  accumulated  at  termini,  just  as  they  did  in 
Ensfland,  when  they  could  have  been  fully  employed 
had  they  been  under  the  control  of  a  central  manage- 
ment perfectly  acquainted  v.ith  the  work  waiting  to  be 
p>erf armed  at  everv  part  of  the  svstem. 

Ansvt^eps  to    Coppespondents. 

D.  Y.  O. — Prospects  are  better,  rates  have  been  increased,  so 
we  think  you  should  hold  on.  (i)  This  is  the  stronger  concern. 
(2)  Will  be  a  longer  wait,  but  the  stock  will  improve  with  the 
general  market. 

J.  II.  G. — Yes,  but  we  do  not  think  there  is  any  great  rise 
in  them. 

Perplexed. — Impossible  to  answer  fully  in  this  column.  As 
to  No.  1,  the  reduction  proposed  may  do  no  harm  owing  to  the 
operation  of  the  excess  profits  tax,  so  do  not  sell  except  where 
you  have  a  substantial  prd5t.  As  to  No.  2,  the  prospect  is 
obscure,  but  competition  is  increasing  all  over  the  East,  and  it 
might  be  wise  to  sell  when  you  see  opportunities.  (3)  As  a 
temporary  investment  these  shares  might  do,  but  they  are  fully 
high-priced  now.     This  leaves  you  is.  in  our  debt. 

C.  B.  W. — They  look  high  enough  for  the  present.  If  they 
slip  back  appreciably  they  might  be  worth  attention  as  the  com- 
pany must  be  doing  well. 

M.  R. — Either  the  Prudential  or  the  Phoenix. 

Dora. — (i)  Not  unless  you  can  do  better  with  the  money.  (2^ 
Quite  speculative,  and  for  the  present  probably  high  enough. 
If  they  fell  back  J  or  so  a  purchase  might  be  considered. 

Hills. — They  are  de.ir,  in  our  opinion.  They  did  for  one 
year,  but  are  not  bound  to  do  so. 

J.  G.  H. — We  have  hearS  nothing  recently,  but  the  l;jst  re- 
ports were  rather  more  cheerful.  It  may  not  be  possible  to 
resume  dividends  just  yet,  but  we  should  not  recommend  selling 
now  as  there  seems  a  chance  of  a  partial  recovery. 

_S.  F.  G. — (i)  We  have  not  a  very  high  opinion  of  this,  and 
think  it  is  one  you  should  sell.  (2)  Is  quite  good,  but  price  is 
hich,  maintained  by  purchases  for  .sinking  fund,  so  mieht  be 
.sold.  (3)  Quite  a  fair  security;  do  not  advise  selling,  although 
appreciab'e  recovery  not  likely  urider  existing  conditions.  (4) 
.\lso  good,  and  same  remarks  apply.  (5)  First-class  security, 
but  high  enough  if  you  can  sell  over  50.  (6)  Ten-year  issue. 
All  carry  right  of  conversion  into  5  per  "cent.  Loan. 


January  5,   1918. 


^be  Jnvestors'  IReview, 


»9 


I 


Tea,  Oil  and   Rubber. 

At  this  lime  last  year  the  price  of  rubber  was  over  3s. 
per  lb.  ;  it  is  now  2s.  6d.  But  there  is  scarcely  a  share 
in  which  there  is  anything  approaching  a  free  market 
which  does  not  stand  much  higher  than  it  did  a  year 
ago,  and  in  many  cases  the  advance  amounts  to  be- 
tween 25  and  50  per  cent.  Yet,  even  so,  there  arc 
people  who  are  not  satisfied,  who  are  clamouring  for  a 
restriction  of  output,  merely  in  order  to  "  boost  "  prices 
stiM  higher.  The  rumour  went  round  this  week  that 
ihe  principal  estates  had  agreed  to  reduce  their  output 
by  20  per  cent.,  in  order  to  raise  the  price  to  at  least 
3s.  per  lb.  Frankly,  we  cannot  believe  that  the  leaders 
of  the  industry  will  lie  such  fools  as  to  put  themselves 
in  a  horribly  false  position  for  the  sake  of  a  temporary- 
very  temporary — advantage.  What  is  their  grievance? 
Well-managed  and  favourably  situated  plantations  can 
produce  rubber  at  yd.  to  is.  per  lb. — it  is  most  excep- 
tional (apart  from  very  young  estates)  to  find  costs 
exceeding  is.  to  is.  2d.  And  the  average  selling  price 
during  the  past  year  has  been  rather  over  than  under 
2s.  6d.  That  means  to  say  that  the  gross  profit  has 
generally  ranged  from  250  per  cent,  to  300  per  cent, 
and  upwards.  Is  not  that  enough  to  satisfy  anyone  ex- 
cept the  most  unmitigated  profiteer?  Of  course,  it  is 
not  the  producer  who  is  dissatisfied.  It  is  the  share- 
pusher and  manipulator  who  is  either  inordinately 
greedy  or  has  burnt  his  fingers  by  taking  a  far  too  opti- 
mistic view  of  the  outlook.  But  if  the  solid,  sound  in- 
dustry is  to  be  dragged  at  the  tail  of  these  people,  we 
feel  very  sorry  for  it,  and  hope  th.it  the  really  re- 
sponsible people  will  think  more  than  once  l>efore  suc- 
cumbing to  the  temptation.  It  will  do  neither  them 
nor  their  companies  any  good  in  the  long  run.  We 
have  often  said,  and  again  repeat,  that  rubber  shares 
will  be  a  much  sounder  investment  than  they  are  now 
when  gross  profits  are  reduced  to  a  purely  commercial 
basis,  which  cannot  be  said  to  be  the  case  at  present. 
Take  tea,  for  instance.  Most  of  the  good  companies 
are  quite  content  to  work  on  a  gross  profit  of  50  to  80 
per  cent.,  and  they  do  exceedingly  well  on  that  basis. 
Why  should  a  rubber  company  require  300  per  cent,  or 
more? 

It  is  very  remarkable  when  we  know  the  state  of 
chaos  that  has  been  prevalent  in  Mexico  during  the 
past  few  years  that  the  Mexican  Eagle  Oil  Co.,  Ltd., 
should  have  gone  on  and  prospered  to  the  extent  that 
it  has  done.  Of  course,  there  has  been  a  tremendous 
demand  for  oil  owing  to  th£  war,  and  that  no  doubt  is 
mainly  responsible  for  the  Vine  record  shown,  but,  all 
the  same,  the  business  of  the  company  could  not  have 
been  interfered  with  to  any  appreciable  extent.  Just 
look  at  the  figures  for  the  past  four  years  ended  June 
30.  To  1914  the  trading  profit  was  §9,690,000,  next 
year  it  was  $11,215,000,  to  June,  1916,  it  was 
$17,064,000,  and  for  the  past  twelve  months  it  rose  to 
819,870,000.  Dividends  in  the  first  year  absorbed 
$4,000,000;  last  year  they  amounted  to  §10,000,000, 
both  the  ordinary  and  preference  shares  receiving  20 
per  cent.,  or  4 'per  cent,  more  than  last  time,  while 
various  reserve  funds  got  $2,072,000,  and  $6,500,000, 
or  about  $900,000  more,  is  carried  forward.  Reserves 
now  amount  to  $40,000,000,  and  assets  have  increased 
by  $8,000,000  to  $110,000,000.  Evidently  the  com- 
pany has  secured  an  extremely  strong  position  in  the 
oil  trade,  and  there  is  no  reason  why  it  should  not  go 
on  and  prosper. 


The  Week  in  Minos. 

The  passing  of  the  old  year  and  the  beginning  of  the  new 
has  been  marked  by  a  display  o£  cheerfulness  in  the  mining 
markets,  which  is  characteristic  of  Stock  Exchange  psychology. 
Business  has  been  on  a  very  small  .scale,  and  the  only  reason 
for  this  bullishness  is  the  hope  that  the  coming  year  will  bring 
an  end  to  this  murderous  war.  Far-Eastern  Rand  shares  have 
been  a  feature  of  strength,  and  Rezendes  have  broken  another 
record.  But  tin  shares  have  weakened  on  the  heavy  decline  in 
the  metal. 

South  and  West  Afric.\ns. 

Helped  by  advices  from  Johannesburg,  Far-Eastern  Rand 
shares  have  had  a  burst  of  strength,  but  the  low-grade  mines 
have  been  dull  on  the  prospect  of  a  suspension  of  operations  if 


the  war  does  not  soon  come  to  «in  end.  Xuw  Modders  have 
risen  ^  to  23^,  Modder  IJeeps  j'g  to  j^,  Meyer  and  Charlton, 
on  the  increased  distribution,  -j>g  to  55^,  and  Modder  B  and 
Modder  Leases  -^  to  8f§  and  3  25-32  respectively.  Rand 
Mines  were  also  supported  and  close  4  higher  at  3tIj- 
.African  Farms  improved  to  8s.  gd.  on  the  Leeuwpoort  Tin's 
maiden  dividend,  and  Transvaal  Consolidated  Lands  are  is.  Cd. 
higher  at  15s.  6d.  Diamond  shares  have  been  strong,  parti- 
cularly De  Beers,  both  the  prefs.  and  deferreds  being  raised  f6 
to  13^.  In  the  Rhodesian  section  Chartereds  have  advanced  to 
15s.,  Falcons  is.  3d.  to  i8s.  gd..  Lonely  Reefs  2s.  6d.  to  31s.  gd. 
on  the  final  dividend  and  bonus  of  3s.,  while  Rezendes  have 
spurted  Ji  to  ^%  on  favourable  development  reports.  Zam- 
besias  have  recovered  2s.  to  26s.  Among  West  African  shares, 
Fanti  Consols  have  risen  to  7s. 

Copper  .ind  Miscei.ianeous. 

Copper  shares  have  moved  rather  irregularly.  Mount  Elliotts 
have  declined  J  to  3J  on  the  report,  and  Capes  at  2^,  and 
Namaquas  at  2^,  are  botli  i  lower,  but  Hampdens  have  re- 
covered 6d.  to  31S.  6d.  The  boom  in  tin  shares  has  been  effec- 
tively checked  by  the  Government  at  last  treating  the  metal  as 
a  "  war  metal,"  and  stopping  speculation  in  it.  As  a  result  the 
price  has  fallen  £32  to  ;^26gi  per  ton,  and  it  is  expected  that 
eventually  a  maximum  price  will  be  fixed.  Tin  shares  show  a 
general  decline,  though  of  slight  extent,  because  the  price  of 
the  metal  is  still  extraoidinarily  profitable.  An  exception  is 
East  Pools,  which  have  risen  is.  to  i6s.  gd.  Broken  Hill  shares 
have  been  rather  firmer.  Lead  is  now  dealt  in  on  a  nett  instead 
of  a  gross  basis,  and  the  price  has  accordingly  been  lowered 
this  week  by  £1  to  ;^29  a  ton.  Russian  shares  are  unaltered. 
Silver  shares  have  met  with  support,  and  Burma  Corporation 
has  risen  I'g  to  4. 


HALLEY'S   INDUSTRIAl.    MOTORS,  LTD. 

After  providing  for  excess  duty,  munitions  levy,  and  depre- 
ciation the  nett  profit  for  the  year  to  September  30  «vas  jf  34,220, 
an  increase  of  ;^6,5oo,  but  rather  less  was  brought  in,  and  the 
available  balance  of  ^36,440  is  ;^5,ooo  up.  Last  year  ;^35,ooo 
of  the  reserve  was  capitalised,  raising  the  issued  capital  to 
^140,000,  and  consequently  to  pay  the  same  dividend  of  10  per 
cent,  and  bonus  of  5  per  cent,  absorbs  just  a  little  more  than 
the  increased  profit,  leaving  .1^15,440  to  be  carried  forward. 
Changes  in  the  balance-sheet  are  unimportant,  except  for  a 
decrease  of  ;^i  1,000  in  stock  and  work  in  progress  at  ^^67,700. 
A  decline  of  ^f  12,000  in  cash  at  ;^2i,6oo  is  offset  by  an  increase 
of  ^,'10,000  at  ;^3g,4oo  in  War  Loan  investments,  and  the  posi- 
tion looks  healthy. 


New  Zealand. 


A  Wealthy  Country,  Splendid  Climate,  Fertile 
Soil,  Plenty  of  Water. 

An  Ideal  Cotjntry  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  population,  has  an 
annual  export  of  raw^  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IRON,  TIMBER. 
GUM,  GOLD  AND  SILVER.  Total  yield  of  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  have  been  advanced 
by  Government  to  Farmers  and  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 

The  Railways,  3,000  miles,  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State. 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  new 
country-.  New  Zealand  offers  solid  advantages. 
Excellent  Steamship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Shipping  Company, 
Limited,  and  the  Federal  and  Shire  Lines. 


Full  information  is  supplied  fiee  by 

THE  HIGH  COMMISSIONER  FOR  NEW  ZEALAND. 

413-416,  STRAND,  W.C.  2. 


20 


TLbc  3nve8tor3'  "Review. 


January  5,  1918. 


BANK    RATE    NOTICES. 


BANK    RATE    NOTICES. 


THE    UNION    OF    LONDON    A    SMITHS    BANK, 
LIMITED. 


NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposits  at  the  Head  OflSce  and  Metropolitan 
Branches  repayable  on  seven  days'  notice  will  be  THREE-ANlJ-A- 
HALF  per  Cent,  per  annum  from  this  date  until  further  notice, 
which  will  be  given  by  advertisement  only. 

H.  H.  HART,  General  Manager  (Town  and  Foreign). 
L.  E.  THOMAS,  General  Manager  (Country). 
No.  2,  Princes  Street,  E.C., 
2nd  January,  1918. 

PARR'S    BANK,    LIMITED. 


NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  by  this  Bank  at  the  Head  Office  and  Metropolitan 
Branches  on  Deposit  at  seven  days'  Call  is  THREE-AND- 
A-HALF  per  Cent,  per  annum  until  further  notice. 

JOHN  STEWART,  General  Manager. 
Bartholomew  Lane,  E.C., 
2nd  January,   1918. 

BANK    OF    SCOTLAND 

(LONDON  OFFICE). 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposit  Accounts  will  be  THREE-AND-A- 
HALF  per  Cent,  until  further  notice  by  advertisement. 

WILLIAM   SMILES,  Manager. 
No.  30,  Bishopsgate,  E.C., 
2nd  January,  1918. 

BRITISH  LINEN  BANK  (LONDON  OFFICE). 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF 
INTEREST  allowed  on  Deposit  Accounts  at  this  Office  will  be 
THREE-AND-A-HALF  per  Cent,  until  further  notice. 

JAMES  LITTLE,  Manager. 
Threadneedle  Street,  London,  E.C., 
2nd  January,   1918. 

WILLIAMS   DEACON'S   BANK,   LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  by  this  Bank  on  Deposits  at  seven  days'  notice  at  this 
Office  and  Metropolitan  Brancnes  will  be  THREE-AND-A-HALF 
per  Cent,  per  annum  from  this  date  until  further  notice. 

JOHN  J.  MEAGHER,  Manager. 
20,  Birchin  Lane,  E.C., 
2nd  January,  1918. 

THE    COMMERCIAL    BANK    OF    SCOTLAND 
LIMITED    (LONDON    OFFICE). 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposits  at  this  Office  will  be  THREE-AND-A- 
HALF  per  Cent,  until  further  notice  by  advertisement. 

GEO.  S.  COUTTS,  Manager. 
No.  62,  Lombard  Street,  London,  E.C., 
2nd  January,  1918. 

MARTIN'S     BANK,     LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF 
INTEREST  on  Deposits  with  the  Head  Office  of  this  Bank, 
subject  to  seven  days'  notice,  will  be  THREE-AND-A-HALF 
per  Cent,  per  annum  from  this  date  until  further  notice. 

G.  BROMLEY  MARTIN,  Managing  Director. 
No.  68,  Lombard  Street,  E.C., 
2nd  January,  1918. 


THE    CLYDESDALE    BANK,    LIMITED 

(LONDON  OFFICE). 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF 
INTEREST  allowed  on  Deposits  at  this  Office  will  be  THREE- 
AND-A-HALF  per  Cent,  per  annum  until  further  notice. 

DAVID  YOUNG,  Manager. 
30,  Lombard  Street,  E.G., 
2nd  January,  1918. 


LONDON  &  SOUTH  WESTERN  BANK,  LIMITED. 

HEAD  OFFICE:    170,  Fenchurcb  Street,  E.C.3. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  at  the  Head  Office  and  Metropolitan  Branches  of 
this  Bank  on  DEPOSITS  repayable  at  seven  days'  notice  is 
THIS  DAY  REDUCED  to  THREE  AND  A-HALF  per  Cent, 
per  annum. 

HERBERT  HAMBLING,  General  Manager 
2nd  January,  1918. 


THE    LONDON    CITY    AND    MIDLAND    BANK, 
LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposits  up  to  seven  davs'  Call  at  the  Head 
Office  and  London  Branches  will  be  THREE-AND-A-HALI" 
per  Cent,  until  further  notice. 

J.  M.  MADDERS,  ' 
S.  B.  MURRAY. 
F.  HYDE, 
E.  W.  WOOLLEY, 


5,  Threadneedle  Street,  London, 
2nd  January,   1918. 


Joint 

General 

Managers. 


E.C.2, 


NATIONAL    BANK    OF    SCOTLAND,     LIMITED. 

Incorporated  by  Royal  Charter  and  Act  of  Parliament. 
London  Office :  Nicholas  Lane,  Lombard  Street. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposits  at  this  Office  will  be  THREE  ANI> 
A-HALF  per  Cent,  per  annum  for  money  at  seven  days'  notice. 

J.  FERGUSON,  Manager. 
2nd  January,  1918. 

NATIONAL   PROVINCIAL    BANK   OF    ENGLAND, 
LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF 
INTEREST  allowed  by  this  Bank  at  its  Head  Office,  Bishopsgate, 
and  London  Branches  is  this  day  REDUCED  to  THREE  AND- 
A-HALF  per  Cent,  for  money  placed  on  Deposit  at  seven  days' 
notice. 


D.  J.  H,  CUNNICK,  ) 

E.  ELEY, 

A.  G.  HOPEWELL 
No.  15,  Bishopsgate,  London,  E.G., 
2nd  January,  1918. 


Joint  General 
Managers. 


LLOYDS    BANK    LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF 
INTEREST  allowed  by  this  Bank  upon  Deposits  at  its  Metro- 
politan Branches  is  REDUCED  to  THREE  AND  A-HALF 
per  Cent,  for  money  at  seven  davs'  notice. 

HENRY  BELL,  General  Manager. 
No.  71,  Lombard  Street, 
2nd  January,  1918. 

THE  LONDON  JOINT  STOCK  BANK,  LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF 
INTEREST  allowed  at  the  Head  Office  and  London  Branches  of 
this  Bank  on  Deposits  subject  to  seven  davs'  notice  of  withdrawal 
is  this  day  REDUCED  to  THREE  AND  A-HALF  per  Cent, 
per  annum. 

J,  F.  DARLING.  General  Manager. 
5,  Princes  Street,  Mansion  House,  E.C.2. 
2nd  January,  1918. 

THE    UNION    BANK    OF    SCOTLAND,    LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposits  with  the  Union  Bank  of  Scotland, 
Limited,  at  this  Office  will  be  THREE  AND  A-HALF  per  Cent. 
per  annum  from  this  day  until  further  notice. 

GEO.  J.  SCOTT,  Manager. 
London  Office,  62,  Cornhill,  E.G., 
2nd  January,  1918. 

THE  CAPITAL  AND  COUNTIES  BANK,  LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  at  the  Head  Office  and 
Metropolitan  Branches  the  RATE  OF  INTEREST  allowed  on 
Deposits  repayable  on  seven  days'  notice  is  this  day  REDUCED- 
to  THREE  AND  A-HALF  per  Cent,  per  annum. 

G.  A.  HARVEY,   \  Joint 

E.  D.  VAISEY,      J    General  Managers. 
No.  39,  Threadneedle  Street,  E.G., 
2nd  January,  1918. 

LONDON  COUNTY  AND  WESTMINSTER   BANK, 
LIMITED. 


NOTICE  IS  HEREBY  GIVEN  that  at  the  Head  Office  and 
Metropolitan  Branches  the  INTEREST  allowed  to  Depositors  is 
this  day  reduced  to  the  following  rates,  viz.  : — 

On  Deposits  subject  to  seven  days'  notice  THREE  AND  A 
HALF  per  Cent.,  and  on  Deposits  at  call  THREE  per  Cent., 
until  further  notice. 

F.  J    BARTHORPE,  Head  Office  Manager. 
No.  41,  Lothbury.  E.G. 
2nd  January,   1918. 


January  5,  1918. 


Zbc  Jnvestocs'  IRevlew. 


COMPANY  MEETINGS 

SAMUEL   ALLSOPP    AND    SONS. 

The  annual  general  meeting  of  Samuel  AUsopp  and  Sons, 
Limited,  was  held  on  December  28  at  the  Cannon  Street  Hotel, 
E.C.,  Sir  William  B.  Peat  {the  chairman)  presiding. 

The  Chairman  said  that  the  balance-sheet  was  one  of  those 
which  required  little  to  be  said  about  it.  It  was  so  excellent ; 
at  any  rate,  in  the  opinion  of  the  directors,  it  was  Uke  good 
wine  and  required  no  bush.  The  profits  had  naturally  increased, 
the  revenue  from  licensed  properties  had  naturally  increased, 
and  the  interest  and  dividends  had  also  naturally  increased, 
because  they  had  more  money  invested.  Their  profits  in  1914 
were  ^13,048;  in  1915,  ^^31,825;  in  1916,  ^60,791;  and  in 
1917,  ^127,165.  In  each  of  those  years  the  profits  bad  been 
doubled.  The  position  to-day  justified  the  confidence  which 
the  shareholders,  the  deberature-holders,  and  the  prior  lien 
debenture-holders  placed  in  this  old  concern,  and  in  its  capacity 
to  revive  and  to  leave  behind  it,  he  hoped  for  ever,  that  slough 
of  desipond  which  resulted  in  ithe  chairmen  of  previous  days 
coming  before  the  shareholders,  year  after  year,  with  an  un- 
fortunate tale  to  tell.  He  wished,  however,  to  warn  them  that 
they  could  not  go  on  douibling  the  profits ;  but  whatever  the 
trials  through  which  they  had  to  pass,  the  board  would  do  their 
level  best,  not  in,  the  hope  or  belief  that  they  would  double  the 
profits  io  the  current  year,  but  that  they  would  be  able  to  sihow 
satisfactory  results  when  the  present  year  came  to  an  end.  He 
would  not  take  up  the  time  of  the  meeting  by  referring  to  the 
restrictions  on  the  brewery  trade.  So  far  as  they  were  necessary, 
in  consequence  of  war  conditions,  they  did  not  grumble  at  them. 
One  heard  a  good'  deal  of  Government  interference  with  their 
trade.  Were  the  Government  out  to  secure  the  profit  made 
in  brewing?  Surely  that  was  not  a  reason  that  could  move  a 
Government  to  acquire  an  industry  of  this  character.  Was  it 
that  they  wanted  prohibition  and  meant  to  buy  their  businesses 
in  order  to  stop  the  sale  of  beer?  That  action  had  suffered  stich 
a  serious  defeat  in  the  recent  agitation  that  he  could  not  imagine 
any  Government  out  to  seek  the  suffrages  of  the  people  coming 
out  on  a  platform  of  total  prohibition.  Was  it  to  regulate  the 
trade?  If  that  was  their  object,  it  was  not  necessary  for  the 
Government  to  buy  the  breweries.  They  had  shown  they  could 
regulate  the  trade  without  purchase.  Was  it  that  they  had  an 
idea  in  their  minds  that  State  purchase  was  the  panacea  for  all 
evil?  He  thought  that  a  Government  face  to  face  with 
;£6,ooo,ooo,ooo  of  debt,  upon  which  they  would  have  to  pay  5 
per  cent,  per  annum,  would  not  be  acting  very  wisely  in  be- 
coming capitalists,  at  any  rate,  in  the  brewing  trade. 

Mr.  John  J.  Calder  (managing  director)  said  that  as  to  the 
future  it  was  difficult  to  prophesy  in  these  times.  They  had 
not  reached  the  stage  which  was  the  goal  they  all  aimed  at, 
when  every  class  of  stock  would  receive  a  dividend,  but  they 
had,  he  hoped,  got  over  the  roughest  part  of  their  journey.  As 
regarded  the  brewing  trade  generally,  he  said  that  nothing  could 
be  more  gratifying  to  them  than  the  decrease  of  drunkenness, 
in  spite  of  the  high  wages  being  paid.  They  were  indebted  to 
the  Control  Board,  on  the  whole,  for  their  sagacious  and  mode- 
rate policy,  which  had  brought  about  good  results.  v 

The  report  and  accounts   were  unanimously  adopted. 

LONDON    AND    SOUTH-WESTERN  BANK. 

An  extraordinary  general  meeting  of  the  London  and  South- 
western Bank,  Ltd.,  was  held  on  Thursday  at  Winchester 
House,  Old  Broad  Street,  E.G.,  for  the  purpose  of  considering 
resolutions  with  regard  to  the  proposed  amalgamation  with 
the  London  and  Provincial  Bank,  Ltd.  Sir  Herbert  Hambling 
presided. 

The  Secretary  (Mr.  Herbert  Potter)  having  read  the  notice 
convening  the   meeting, 

The  Chairman  said  :  Ladies  and  Gentlemen, — It  is  now  my 
duty  to  move  the  resolutions  Nos.  i,  2,  3,  and  4,  which  you 
have  just  heard,  and  which  are  necessary  to  give  effect  to  the 
very  important  step  your  board  is  now  proposing  to  you  of 
joining  forces  with  the  London  and  Provincial  Bank.  I  may 
say  that  no  previous  meeting  of  shareholders  of  the  London 
and  South-Western  Bank  has  exceeded  in  importance  that 
which  you  are  now  attending,  for  it  is  called  to  consider  ? 
course  reversing  our  past  policy.  The  steady  progress  of  the 
bank  for  the  past  55  years  is  well  known  to  most  of  you.  Year 
by  year,  as  the  figures  were  published,  you  had  the  pleasure 
of  reading  balance-sheets  each  showing  a  position  better  than 
the  preceding  one,  and  each  general  manager  within  recent 
memory— Mr.  Herbage,  Mr.  Goodinge,  Mr.  John  Williams 
Mr.  Woodhams,  Mr.  Liscombe  and  myself — has  been  in  his 
turn  associated  with  the  board  in  this  progression.  When  I 
joined  the  bank  42  years  ago  the  deposits  were  just  over  one 
million.  When  I  was  appointed  general  manager  seven  years 
ago  they  were  i6i  millions,  and  to-day  they  are  over  38  mil- 
lions. You  will,  therefore,  see  that  throughout  the  business 
has  been  a  progressive  one.  We  formed,  jointly  with  the 
Army  hankers,  Messrs.  Cox  and  Co.,  the  company  of  Cox  and 
Co.  (France),  Ltd.,  which  has  proved  a  satisfactory  invest- 
ment. We  have  extended  our  Italian  connections  by  an  arrange- 
ment with  the  Banca  Italiana  di  Sconto,  and  we  have  opened 
a  branch  to  deal  specially  with  our  Stock  Exchange  cotnec- 
tions.  You  will,  therefore,  see  that  we  have  gradually  de- 
veloped from  purely  insular  and  local  banking  to  a  class  of 
banking  more  on  the  lines  of  the  other  joint-stock  banks.  We 
have  on  more  than  one  occasion  had  tempting  offers  made  for 
the  purchase  of  this  bank,  but  as  in  each  instance  it  would 
have  meant  sinking  our  identity  in  that  of  a  big  institution,  the 
proposals  were  not  entertained.       Your  directors  have  always 


desired  to  keep  identified  the  business  of  the  London  and  South- 
western Bank,  and  have  set  their  faces  against  any  absorption 
which  had  as  its  sole  object  the  aggregation  of  huge  balances. 
This  policy  has  never  appealed  to  your  board.  Our  business 
is  not,  as  our  name  suggests,  in  the  south-western  part  of 
England;  practically,  it  is  all  done  in  London  and  the  suburbs. 
For  years  we  have  been  working  inside  a  ringed  fence.  The 
rapid  extension  of  our  foreign  business,  and  the  recent  arrange- 
ments we  have  made  abroad,  compelled  the  board  once  more 
to  review  the  situation  thoroughly,  more  especially  as,  in  addi- 
tion to  the  requirements  of  our  new  connections,  the  continued 
extension  of  the  branch  business  system  among  our  customers 
has  given  rise  to  increased  pressure  on  their  part  for  additional 
facilities  in  the  provinces.  Our  policy  seemed  to  be  one  of 
three  alternatives  : — (i)  Should  we  continue  as  a  purely  London 
and  suburban  bank?  This  is  a  safe  policy,  provided  the  com- 
mission business  of  London  remained  steadily  progressive  as  in 
the  past ;  but  it  is  parochial  and  has  its  limitations,  for  it 
hampers  us  in  dealing  with  larger  business,  and  restricts  us 
in  taking  our  share  of  the  banking  arising  from  the  commerce 
of  the  country.  (2)  Recognising  this,  should  we  endeavour  to 
open  branches  in  the  big  industrial  centres  and  seaports?  This 
policy  would  incur  great  expense,  and  the  keen  competition  of 
existing  institutions  would  entail  years  of  waiting  for  definite 
results.  Or  (3)  should  we  amalgamate  with  or  absorb  some 
institution  with^  a  country  connection?  After  the  most  careful 
consideration,  your  board  came  to  the  conclusion  that  the  last 
alternative  is  the  best.  Our  relations  with  the  London  and 
Provincial  Bank  are  not  of  sudden  growth.  Some  six  years 
ago  the  respective  boards  carried  on  a  flirtation,  which  almost 
resulted  in  a  proposal  of  marriage.  Unfortunately,  however,  at 
that  time  we  could  not  agree  to  terms,  and  the  negotiations  were 
broken  off,  to  be  resumed  last  year,  with,  I  hope,  a  happy 
result.  l"here  is  no  question  that  our  London  business  and 
foreign  connections  will  be  of  advantage  to  them,  and  we  on 
our  part  need  their  country  business  in  Wales,  the 
provinces,  and  at  the  seaports.  At  the  outbreak  of  war 
we  were  already  interested  in  the  foreign  banking  field, 
and  we  have  since,  as  I  have  already  told  you,  increased 
such  interests  by  the  arrangements  made  for  the  joint  partner- 
ship in  Messrs.  Cox  and  Co.  (France),  Ltd.,  and  by  the  inti- 
mate connection  formed  with  the  Banca  Italiana  di  Sconto. 
Here  we  possess  a  framework  on  which  we  can  build  an  institu- 
tion of  great  national  importance,  an  institution  which,  by 
providing  efficient  service  to  our  manufacturers  and  traders, 
can  aid  substantially  in  rehabilitating  and  increasing  the  trade 
and  wealth  of  the  country.  The  territory  occupied  by  the 
London  and  Provincial  Bank  will  greatly  assist  us  in  this 
respect.  Although  we  possess  an  excellent  connection  with 
merchants  and  importers,  yet,  broadly  and  generally  speaking, 
we  are  not  established  in  any  manufacturing  area,  and  we 
cannot,  therefore,  place  this  organisation  of  ours  effectively  at 
the  disposal  of  the  manufacturer.  Unlike  ourselves,  the  London 
and  Provincial  Bank  have  branches  at  some  of  the  most  impor- 
tant seaport  and  industrial  centres,  and,  therefore,  possess  a 
clientele  which  will  be  benefited  by  this  machine  which  we 
have  created.  In  brief,  the  London  and  Provincial  Bank 
possesses  that  which  is  of  importance  to  us,  if  we  are  to  do 
our  share  in  stimulating  production — branches  in  provincial 
towns  and  at  seaports — while  we  have  that  which  the  London 
and  Provincial  Bank  require— a  well -organised  foreign  branch. 
The  figures  in  the  balance-sheets  of  the  London  and  Provincial 
Bank  have  been  as  steadily  progressive  during  the  past  few  years 
as  our  own.  Their  capital  is  ^1.000,000  sterling,  their  reserve 
fund  / 1, 650,000,  while  their  current  and  deposit  accounts _  on 
December  31  last  totalled  the  sum  of  nearly  36  millions,  which, 
as  you  will  see,  closely  approximates  to  our  own  figure.  They 
have  paid  a  dividend  of  ig  per  cent,  for  the  past  five  years. 

In  the  case  of  two  such  institutions  as  the  London  and  Pro- 
vincial and  London  and  South-Western  Banks  there  can  be  no 
question  of  absorption  of  either  by  the  other.  We  go  into  the 
arrangements  on  equal  terms  where  equality  is  possible,  and  of 
mutual  concessions  where  this  cannot  be  so.  We  are  perfectly 
satisfied  that  the  earning  capacity  of  the  two  institutions  is 
justly  represented  by  the  holdings  that  each  set  of  shareholders 
will  have,  otherwise  your  directors  would  not  have  asked  you 
to  consent  to  this  arrangement.  Now  let  me  give  you  an  in- 
stance of  mutual  concessions.  Each  bank  would,  of  course,  have 
preferred  its  own  name  first.  Each  bank  would  have  liked  its 
head  office  to  be  the  head  office  of  the  amalgamated  bank;  but 
we  came  to  the  conclusion  that  it  was  a  fair  exchange  that  we 
should  place  their  name  first  while  fixing  the  head  office  at  Fen- 
church  Street.  Our  larger  City  business  makes  this  arrange- 
ment the  best  in  the  interests  of  the  amalgamated  bank,  while 
we  think  there  is  no  question  that  the  better  title  of  the  joint 
bank  is  to  have  the  word  "  Provincial "  first,  as  it  covers  a 
wider  geographical  area.  The  whole  of  your  board  join  the 
amalgamated  bank,  so  do  the  whole  of  your  staff.  The  terms 
of  the  amalgamation  you  know,  and  with  regard  to  the  decrease 
of  ^75.000  in  the  capital  of  this  bank,  a  few  shareholders  have 
raised  the  question  as  to  what  becomes  of  the  amount  by  which 
the  capital  is  reduced.  This  sum  will  be  added  to  the  general 
or  inner  reserves.  I  should,  however,  like  to  emphasise  that  in 
the  adjustment  of  the  capital  vour  shares  will  now  onlv  carry  a 
liability  of  /^  per  share,  instead  of  ^6.  as  before,  and  this  eives 
a  much  grea'ter  reduction  reallv  than  /li  a  share  in  the  liabilitv. 
bovine  regard  to  the  fact  that  vou  are  exchaneing  four  of  vour 
present  shares  for  three  new  ones.  The  vplue  of  vour  holding 
pftpr  pvrhoncing  four  shaTPS  for  three  will  be  at  least  eaual  to 
th»  old  hold^nij.  This  ex'-hance  of  four  shares  for  three  was 
arrived   at  after  long   and  careful  consideration.      Needless  to 


23 


XLbc  investors  IRevicw. 


January  5,   1918. 


s-iT  throughout,  ejich  board  has  had  the  interests  of  its  share- 
holders at  heart,  and  it  is  a  matter  of  satisfaction  to  both  boards 
that  the  figure  arrived  at  represents  the  relative  market  values, 
while,  with  our  continuation  of  the  19  per  cent,  paid  by  the 
Ixjndon  and  Provincial  Bank,  our  shareholders  will  receive  an 
extra  dividend  of  nearly  1  per  cent.  Hitherto  I  have  dealt  with 
the  matter  solely  from  the  shareholder's  point  of  view;  but, 
ladies  and  gentlemen,  you  will  understand  that  in  existing  con- 
ditions the  banks  of  this  country  must  adopt  a  much  wider  out- 
l(X)k.  They  have  duties  to  the  nation  which  must  be  performed, 
and  in  endeavouring  to  aid  the  country's  industries  they  will 
in  the  long  run  be  best  serving  the  interests  of  their  .share- 
holders. In  order  to  meet  the  adverse  balance  of  trade  so 
gravely  increased  by  war's  exigencies,  we  have  had  to  sell 
abroad  large  blocks  of  our  foreign  investments.  In  spite  of  the 
help  that  our  holding  of  foreign  securities  thus  gave  us,  the 
American  and  neutral  exchanges  are  all  substantially  adverse  to 
this  country;  and,  looking  to  the  post-war  future,  I  cannot 
see  how  this  i)Osition  can  be  adjusted,  except  by  a  great  increase 
in  production,  and  in  exports,  accompanied  by  rigid  control, 
exercised  both  by  the  Government  and  by  the  individual  citizen, 
of  our  purchases  of  foreign  goods,  except  such  as  are  necessary 
to  our  subsistence  and  our  trade.  Owing  to  the  high  cost  oJ 
food  and  raw  materials,  control  of  foreign  purchases  cannot 
<arry  us  far.  It  is  on  the  other  side  of  the  balance-sheet  that  we 
must  find  solution.  It  is  to  the  manufacturer,  the  trader,  and 
the  transDorter— all  who  turn  out,  handle,  and  move  our  goods 
for  export— that  we  must  look  for  the  solution  of  our  national 
difficulties.  All  our  problems— of  finance,  cost  of  living,  ex- 
changes, trade  position,  and  the  maintenance  of  a  higher  stan- 
dard for  our  working  classes— all  are  to  be  solved  in  one  ^vay 
;ind  in  one  way  only,  by  a  greater  output  of  goods  and  a  sparing 
<on.sumption  of  unnecessary  articles.  Only  by  obtaining  a  great 
production  and  shipping  as  much  of  it  as  possible  to  foreign 
buyers  can  we  restore  our  economic  position  and  liquidate  our 
war  debt  to  foreign  creditors.  A  great  effort  will  be  needed 
from  our  industrial  and  commercial  workers,  and  they  can  only 
■riake  this  effort  if,  by  the  initiative  and  enterprise  of  individual 
hanks  they  are  supplied  with  those  facilities  without  which 
they  will  be  helpless  in  that  fierce  world-wide  competition  which 
will  -follow  the  declaration  of  peace.  In  providing  this  need— 
■-<>  vital  to  the  nation's  very  existence  as  a  premier  conimercial 
power— I  have  every  confidence  that  the  great  bank  which  we 
hope  you  will  assist  in  establishing  to-day  will  play  a  leading 
part  I  will  now  briefly  recapitulate  the  chief  points  which  we 
vee  in  regard  to  the  business  before  us— that  is,  the  amalgama- 
tion of  the  London  and  South-Western  and  London  and  Provin- 
.-ial  Banks.  The  advantages  in  the  proposed  combination  need 
be  restated  verv  briefly.  You  will  get  a  market  value  equal  to 
that  which  you' now  possess,  a  reduced  liability,  and  a  consider- 
ably larger  reserve.  You  will  have  increased  opportunities  for 
the  expansion  of  business  in  a  geographical  area  from  which 
vou  have  been  precluded  in  the  past,  and  you  will  receive  an 
increased  dividend.  You  will  have  placed  your  shares  on  a 
broader  basis,  and  one  which,  we  believe,  will  strengthen  them 
as  an  investment.  I  would  also  mention  that  considerable 
economies  in  management  will  ensue,  and  where  we  have  ad]a- 
<ent  branches  it  will  be  possible  to  concentrate  our  business,  and 
while  giving  customers  the  same  advantages  as  hitherto,  to 
effect  (x.nsiderable  saving  in  expense.  I  would  emphasise  to 
vou  that  there  is  also  the  question  of  prestige.  W  ith  the  com- 
bined capital  and  reserve  of  ;^5.'2,S.o°0'  and  current  accounts 
of  over  70  millions,  your  institution  will  take  its  place  in  the 
first  rank  of  the  great  clearing  banks.  As  regards  the  customers 
of  the  bank,  they  will  enjoy  the  advantages  of  increased  re- 
sources drawn  from  a  wider  area  and  capable  of  use  in  more 
channels.  I  have  no  hesitation  in  stating  that  the  customers 
of  both  the  present  banks,  and,  in  fact,  the  business  public 
generally,  will  benefit  by  the  amalgamation. 

Lord  Claud  Hamilton  seconded  the  resolution,  which,  after 
some  congratulatory  remarks  by  shareholders,  was  carried 
unanimously. 

BRITISH  COLUMBIA  ELECTRICIRAILWAY. 

The  twenty-first  ordinary  general  meeting  of  the  British 
Columbia  Klectric  Railway  Co.,  Ltd.,  was  held,  on  Friday,  at 
the  Great  Eastern  Hotel,  Mr.  G.  I'.  Norton  presiding 

Mr.  Michael  I'rwin  (the  secretary)  havnng  read  the  notice 
calling  the  meeting  and   the  auditors'   report,  ,,      „    ,, 

The  Chairman  .said  he  had  to  express  regret  that  Mr.  K.  M. 
Horne-Payne,  the  chairman  of  the  company,  was  unable  to 
be  present.  He  had,  however,  prepared  a  speech,  which  Mr. 
Harold   Brown  would  read. 

Mr.  Harold  Brown  then  read  the  following  :— Ladies  and 
Gentlemen,— I  do  not  think  that  there  is  anything  in  the 
annual  report  :ind  accounts  which  requires  special  explanation. 
It  is  with  very  great  regret  that  your  directors  have  decided  not 
to  pay  the  interim  dividend  on  the  5  per  cent,  cumulative  pre- 
ference stock,  hitherto  paid  in  January  of  each  year,  and  to 
po-stpone  the  consideration  of  the  dividend  on  this  .stock  until 
the  end  of  the  financial  year.  This  decision  has  been  made 
in  view  of  the  uncertainty  as  to  the  amount  of  the  company's 
earnings  in  the  immediate  future,  and  to  the  fact  that  we 
•  cannot  prudently  continue  to  pay  the  larger  portion  of  this 
dividend  out  of  the  reserve  fund.  The  results  of  the  year 
under  review — namely,  the  year  ended  June  30,  1917 — have 
only  enabled  us  to  pay  the  full  dividend  on  the  5  per  cent, 
cumulative  preference  stock  by  resorting  to  the  reserve  fund 
to  the  extent  of  ;f44,ooo.  In  the  preceding  year  we  had  to 
take    ;^7o,ooo   from    the    reserve   fund    in  order    to   make  the 


same  payment.  Since  the  annual  report  was  issued  we  have 
received  by  cable  the  statement  of  income  and  expenditure 
for  the  month  of  November,  showing  an  increase  m  gr<»s 
earnings  of  $52,862,  and  in  nett  income  of  $31,772-  ^nus  the 
gross  earnings  for  the  first  five  months  of  the  current  financiaJ 
year  show  an  increase  of  just  under  $200,000  over  the  earnings 
for  the  same  period  of  the  preceding  year;  but,  unfortu- 
nately, the  increase  in  the  nett  income  for  the  five  months 
only  amounts  to  $29,000.  or,  say,  ;^6,ooo.  We  can,  however, 
take  some  encouragement  from  these  figures,  as  the  increase 
in  gross  earnings  is  due  to  a  very  marked  improvement  in 
trade  and  business  conditions  in  British  Columbia,  which  has 
every  indication  of  being  of  a  permanent  character.  If, 
therefore,  as  a  result  of  the  report  of  the  recent  Commission 
of  inquiry,  jitney  competition  is  abolished  and  other  con- 
ditions are  fairly  adjusted,  there  is  a  sound  basis  on  which 
to  build  hopes  that  less  difficult  times  are  in  store  for  us. 

I  shall  say  very  little  to-day  on  the  subject  of  the  policy  and 
prospects  of  the  company.  They  are  dependent  on  the  result 
of  negotiations  now  being  carried  on  with  the  object  of  bring 
ing  about  a  fair  and  satisfactory  arrangement  of  working 
conditions  based  on  the  Commissioner's  report,  and  I  am 
debarred  from  discussing  them  by  the  fear  of  saying  any- 
thing which  might  po.ssibly  lead  to  misunderstanding  or  fric- 
tion in  British  Columbia  and  prejudice  these  negotiations.  I 
will  confine  myself  to  recalling  to  your  minds  what  has  taken 
place  during  the  past  twelve  months.  From  the  beginning  of 
the  war  until  the  end  of  1916  the  company's  earnings  fell 
away  heavily  owing  to  decreased  population  and  stagnation  of 
trade,  and  to  the  competition  of  what  is  known  as  the  jitney 
car,  and,  at  the  same  time,  the  cost  of  labour  and  supplies 
increased  enormously  imtil  our  nett  earnings  barely  covered 
debenture  interest.  In  September,  1916,  the  company  had 
voluntarily  granted  an  increase  in  wages  costing  $110,000  per 
annum  to  enable  the  men  to  meet  the  increa.sed  cost  of  living. 
In  June,  1917,  the  men  presented  a  demand  for  a  further  in- 
crease, amounting  to  about  $250,000,  on  the  ground  of  still 
further  greatly  increased  living  expense,  and,  on  this  being 
refused,  struck  work.  After  a  few  days'  suspension  of  the 
cars,  the  Government  of  British  Columbia  and  the  Council  of 
the  City  of  Vancouver  approached  our  general  manager,  with 
a  view  to  bringing  about  a  resumption  of  the  services,  and 
it  was  agreed  that  a  commission  of  inquiry  should  be  appointed 
by  the  Government  to  examine  and  report  on  the  transportation 
problem  in  Vancouver  City  and  surrounding  districts,  especi- 
ally with  reference  to  the  jitney  car  competition.  Subsequently, 
it  was  mutually  agreed  that  the  inquiry  should  include  a 
thorough  investigation  of  the  whole  scope  and  every  depart- 
ment of  the  company's  business.  The  company  and  the  city 
undertook  to  abide  by  the  recommendations  of  this  Commis- 
sion. In  the  meantime,  the  company  agreed  to  reinstate  its 
services  and  temporarily  to  grant  the  men's  demands  for  in- 
creased wages.  On  July  nth,  the  Lieutenant-Governor,  in 
Council,  appointed  Professor  Adam  Shortt,  of  Ottawa,  a  Com- 
mission with  wide  powers,  and  during  the  months  of  July  and 
August  Professor  Shortt  held  a  very  searching  public  inquiry 
in  Vancouver  and  Victoria.  His  report  has  just  reached  us, 
and  the  findings  and  recommendations  are  now  in  your  hands. 
You  will  note  with  liatisfaction  that  your  company  and  man- 
agement have  come  through  the  ordeal  entirely  creditably,  and 
that  the  Commissioner  sustains  the  contentions  of  your  directors 
with  regard  to  jitney  competition  and  on  other  important 
points. 

Professor  Shortt  finds  that  it  is  not  possible  for  both  an 
efficient  tramway  service  and  a  jitney  service  to  continue,  and 
also,  iti/er  aha,  that  our  charges  for  electric  light  are  high, 
whilst  our  charges  for  the  transportation  services  we  give  are 
low,  and  he  proposes  a  readjustment  of  these  charges  and 
services,  and  the  elimination  of  jitnej's  where  they  c<-)me  into 
competition  with  our  lines. 

We  have  now  had  the  position  of  the  company  and  its  rela- 
tions with  and  duties  towards  the  people  of  British  Columbia 
subjected  to  an  exhaustive  investigation,  reviewed  and  adjudged 
by  an  impartial  tribunal,  and  we  have  hastened  to  express 
our  willingness  to  act  on  its  decisions  and  recommendations  in 
a  lo3'al  spirit.  We  look  to  the  Government  and  to  the  various 
municipal  authorities  concerned  to  meet  us  in  the  same  spirit, 
and  we  hope  that  as  a  result  it  maj'  be  found  that  all  mis- 
understandings have  been  removed.  After  the  Canadian  Pacific 
Railway,  we  have  been  in  the  past  by  far  the  most  potent 
influence  in  developing  the  wealth  and  prosperity  of  British 
Columbia.  The  prosperity  of  Vancouver  and  Victoria  is  bound 
up  with  our  prosperity,  and  ours  with  theirs.  We  ask  British 
Columbians,  on  their  side,  to  interpret  and  cirry  out  the  re- 
commendations of  th(-  Commission,  and  to  join  us  in  working 
out  the  situation  in  a  broad  and  fair  spirit,  and  thus  to  put  it  in 
OUT  power,  when  Kaiserism  has  paid  the  penalty  of  its  savage 
brutalities,  to  combine  our  efforts  and  ener.!;ies  effectively  with 
theirs  to  restore  and  develop  the  prosperity  of  British  Columbia. 
The  Chairman  :  I  now  move  :  "  That  the  balance-sheet  as  at 
June  30,  1917,  and  the  revenue  account  for  the  year  ended 
on  that  date,  together  with  the  report  of  directors  and  auditors 
thereon,  be  and  are  hereby  received  and   adopted." 

Mr.  Harold  Brown  seconded  the  resolution,  and.  after  soni'> 
questions  had  been  answered,  it  was  put  to  the  meeting,  and 
carried   unanimously. 

The  Chairman  next  proposed  :  "  That  the  payment,  since  the 
date  of  the  last  annual  general  meeting,  of  the  dividends  at 
the  rate  of  5  per  cent,  per  annum  on  the  cumulative  per- 
petual preference  stock,  and  the  transfer  of  ;f44,ooo  from  the 
reserve  fund  to  the  revenue  account,  be  and  are  hereby  ap- 
proved.** 


January  5,  1918. 


Zbc  3npestors'  Tl^eview. 


23 


This  resolution  was  seconded  by  Mr.  T.  Blundell  liiowii, 
and  unanimously  agreed  to. 

Mr.  Harvey  proposed  :  "  That  the  directors  be  authorised, 
if  they  think  the  circumstances  justify  their  doing  so,  to  pay 
the  dividend  for  the  year  to  June  30,  1918,  on  the  5  per  cent. 
cumulative  perpetual  preference  stock,  and,  if  necessary,  to 
draw   upon  the  reserve  fund  for  that  purpose." 

Mr.  J.  Davidson  .seconded  this,  and  it  was  unanimcmsly 
agreed  to. 

On  the  motion  of  the  Chairman,  seconded  by  Mr.  J.  David- 
-son,  Mr.  R.  M.  Horne-Payne  and  Mr.  E.  M.  Harvey  were  re- 
elected directors. 

A  vote  of  thanks  was  passed  to  the  general  manager,  officers, 
and  staff  in  British  Columbia  for  their  untiring  and  loyal 
efforts  in  the  performance  of  their  duties,  and  Messrs.  Norton, 
Slade,  and  Co.  having  been  reappointed  auditors,  the  pro- 
ceedings terminated. 


I 


LONDON    AND    PROVINCIAL   BANK,    L^D. 

THE   PROPOSED   AMALGAMATION    WITH    THE 

LONDON  AND  SOUTH-WESTERN  BANK. 

ADVANTAGES  OF  THE   FUSION. 

An  extraordinary  general  meeting  of  the  London  and  Pro- 
vincial Bank,  Ltd.,  was  held  yesterday  at  the  Cannon  Street 
Hotel,  Mr.  John  Woodrow  Cross  presiding. 

The  Secretary  (Mr.  R.  G.  Thomas)  having  read  the  notice 
convening  the  meeting. 

The  Chairman  said  :  Ladies  and  Gent'emen, — ^You  are  called 
together  to  consider,  and.  if  you  think  fit,  to  pass,  resolutions 
recommended  by  your  directors  for  the  amalgamation  of  the 
bank  with  that  of  the  London  and  South-Western  Bank,  Ltd. ; 
to  alter  the  name  of  the  bank  to  London  Provincial  and  South- 
western Bank,  Ltd.  ;  and  to  sanction  alterations  in  the  memo- 
randum and  articles  of  association  of  the  .company  rendered 
necessary  or  desirable  by  the  amalgamation,  and  which  altera- 
tions are  set  out  in  the  notice  sent  to  you. 

GROUNDS  FOR  THE  PROPOSED  FUSION. 

You  may  desire  to  have  a  little  further  information,  and  to 
know  the  grounds  on  which  your  directors  recommend  the 
fusion  of  the  two  banks.  Our  progress  in  early  years  was  not 
very  rapid.  The  public  were  mistrustful  of  the  word 
"  limited  "  at  the  end  of  our  name,  and  our  "  unlimited  "  com- 
petitors shook  the  finger  of  scorn  at  us.  but  when  in  1878  the 
sensational  failure  of  certain  large  unlimited'  banks  occurred, 
creating  widespread  uneasiness  among  shareholders  and  ner- 
vousness in  bank  parlours,  an  entirely  changed  feeling  set  in, 
and  the  public  realised  that  it  was  the  balance-sheet  of  the 
bank  and  the  better  class  of  the  shareholders  in  limited  banks 
that  were  their  best  protection,  and  gradua'ly  all  the  unlimited 
banks  registered  under  the  Limited  Liability  Acts,  which  is 
now  the  universal  constitution  of  English  joint-stock  banks. 
The  London  and  Provincial  Bank  from  that  time  has  made 
steady  and  unvarying  progress  year  by  vear  in  its  business 
and  prosperity.  A  very  large  reserve  fund  has  been  built  up, 
an  important  pension  fund  accumulated,  a  large  amount  appro- 
priated to  reduction  of  the  cost  of  premises,  and  the  dividend 
raised  on  different  occasions  to  its  present  amount  of  19  per 
cent. 

Turning  to  the  other  bank,  the  London  and  South-Western 
Bank  w.is  established  in  1862—56  years  ago — and  has  been  a 
well-managed,  progressive,  and  successful  bank.  Its  business 
is  about  the  same  size  as  ours. 

THE  PAID-UP  OIPITAL,  RESERVE  FUND,  Sc,  OF  THE  SMALGAMftTED 
BANKS. 

The  paid-up  capital  of  the  Amalgamated  Banks  will  he 
/2, 125,000,  the  reserve  fund  /3,ooo.ooo.  and  although  I  cannot 
give  you  the  exact  amount  of  the  current  and  deposit  balances, 
as  the  audit  is  not  yet  completed,  they  will  be  well  over — a 
long  way  over — ^^70,000,000.  The  London  and  South-Western 
Bank  adopted  a  similar  policy  to  our  own,  and  raised  their 
business,  not  by  amalgamation,  but  bv  development  of  existing 
branches  and  opening  new  branches,  principally  in  London 
and  its  suburbs,  and,  although  we  have  opened  a  good  many 
Metropolitan  suburban  branches,  our  efforts  have  been  in  a 
great  mea.sure  directed  to  the  country.  The  London  and 
South-Western.  moreover,  have  built  up  a  very  considerable 
foreign  connection,  which  will  be  of  great  value  in  the  big 
effort  English  banking  and  finance  houses  will  make  to  cap- 
ture the  large  and  profitable  foreign  business  which  Germany 
had  created  and  carried  on,  and  which  has,  unfortunately,  in 
a  great  measure  provided  the  sinews  of  war  for  this  dreadful 
conflict  that  their   aggressive  ambition  forced   on   the  world. 

FORMER  NEGOTIATIONS  FOR  THE  AMALGAMATION. 

The  question  of  our  amal?amation  is  hardlv  a  new  one, 
negotiations  having  been  going  on  from  time  to  time  for  a 
period  extending  over  47  years.  At  length  we  have  come  to 
terms,  which  we  submit  for  your  approval  and  confirmation. 
The  London  and  South-Western  Bank,  you  see,  to  make  a  fair 
adjustment,  relinquish  ^^75,000  of  their  paid-up  capital  to 
secure  an  increased  dividend,  and  after  most  careful  considera- 
tion and  investigation  of  each  other's  position,  we  have  come 
to  terras  which  we  consider  mutuallv  fair  and  equitable,  and 
submit   for   your   approval   and    confirmation. 

We  have  to  go  with  the  times,  and  the  spirit  of. them  is  for 
banking  combination.  Many  have  taken  place  of  recent  -"ears, 
and  since  ours  was  announced  you  will  have  noticed  another 
large  one,  and  more  are  talked  about.     Concentration  in  bank- 


ing produces  financial  solidity  and  strength.  The  old  private 
bank,  or  one-office  system,  was  in  many  respects  excellent. 
The  best,  however,  that  could  be  claimed  for  it  was  that  the 
partners  had  local  knowledge  of  the  requirements  of  the  local 
individuals,  but  British  banks  must  now  take  a  wider  view. 
A  surplus  of  credit  balances  received  in  one  town  must,  sub- 
ject to  all  necessary  safeguards,  be  used  for  the  benefit  of  the 
country  elsewhere.  Not  only  have  banks  to  assist  the  trade 
and  commerce  of  the  country  in  the  country,  but  they  have  to 
assist  our  merchants  to  develop  the  British  trade  in  other 
parts.  In  doing  this,  however,  we  shall  not  be  unmindful  of 
our  present  business.  We  have,  as  you  are  aware,  an  im- 
portant commercial  business  in  different  parts  of  the  country, 
particularly  in  South  Wales,  and  we  shall,  as  hitherto,  with 
the  full  knowledge  of  the  district  we  have  acquired,  continue 
to  finance  these  undertakings  for  the  benefit  of  our  customers 
and  shareholders  alike. 

BUSINESS  AFTER  THE  WAR. 
When  the  war  is  over  a  groat  outburst  of  business  may  be  ex- 
pected, to  be  followed,  of  course,  at  some  later  time  by  the 
inevitab'e  reaction.  The  widespread  de.struction  of  property 
will  have  to  be  made  good.  Large  expenditure,  deterred  by 
the  war,  will  be  necessary  on  our  railways.  Building  and 
repairs,  which  have  been  suspended,  will  have  to  be  resumed. 
Replenishment  of  stocks  in  our  home  trade,  which  have  become 
exhausted.  Capital  for  the  foreign  trade  we  hope  to  wrest 
from  Germany,  and  so  on.  The  banks  will  have  to  finance  all 
these  requirements,  and  the  demands  made  will  be  exceedingly 
heavy,  and  by  the  amalgamation  and  concentration  of  re- 
sources we  shall  be  the  better  equipped  to  fulfil  them. 

I  do  not  propose  to  prophesy  as  to  the  profits  and  dividends 
of  the  bank  in  the  future.  That  would  be  to  attempt  the  im- 
possible, as  there  are  so  many  problems  in  the  womb  of  time 
the  effect  of  which  we  cannot  at  present  estimate.  But  what- 
ever the  circumstances  may  be,  the  amalgamation  should  find 
us  better  prepared  to  take  full  advantage  of  prosperous  times 
or  to  meet  adverse  ones,  and,  therefore,  we  recommend  the 
amalgamation  to  you  as  for  the  good  of  our  shareholders,  and 
equally  so  for  those  of  the  other  bank.  With  regard  to  our 
new  name,  we  have  followed  the  usual  custom  in  the  amalgama- 
tion of  large  banks  of  introducing  into  the  title  part  of  the 
name  of  both  b.anks  with  the  view  of  meeting  the  wishes  of  both 
sets  of  customers,  although  some  people  may  think  our  own 
simple  and  shorter  name  would  have  been  preferable.  There 
will,  however,  be  nothing  a-s  years  run  on  to  prevent  the  amal- 
gamated board  from  reverting  to  it  should  they  think  it  ex- 
pedient. He  conc'uded  by  proposing  the  first  resolution,  ap- 
proving the  proposed  amalgamation. 

Lieutenant-Colonel  Alfred  Gilbey  seconded  the  resolution, 
whicJi  was  carried  unanimously,  as  was  also  the  next  resolu- 
tion, approving  certain  alterations  in  the  memorandum  of  asso- 
ciation. 

The  Chairman  then  proposed  the  third  resolution,  sanctioning 
various  alterations  in  the  articles  of  association. 

Dr.  Leeson  moved  an  amendment,  but  after  some  discussion 
this  was  withdrawn  and  the  original  resolution  was  carried 
unanimously. 

Mr.  W.  G.  Dver,  in  proposing  a  vote  of  thanks  to  the  cliair- 
man  for  presiding  and  to  the  other  members  of  the  board, 
observed  that  the  proposed  amalgamation  was  a  very  important 
one,  and  he  felt  sure  that  it  would  be  to  the  advantage  of  all 
concerned. 

Dr.  Leeson  cordially  seconded  the  vote,  and  desired  to  pay 
a  tribute  to  their  veteran  chairman,  to  whose  untiring  labours 
and  great  financial  genius  the  shareholders  owed  the  splendid 
position   of   the  bank  that    day. 

The  Chairman,  in  reply,  said  that  he  very  greatly  appre- 
ciated the  kind  remarks  which  had  been  made  bv  Dr.  Leeson 
and  the  other  speakers.  His  duties  that  day  had  been  rendered 
very  easy  and  pleasant  by  the  confidence  and  courtesy  of  the 
shareholders,  and  he  thanked  them  very  much. 
The   proceedings    then    terminated. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

Head  Office— 71  Old  Broad  Street.  E.C  2. 

Subscribed  Capital         B1, STB. 7*7     10    O 

Paid  up  Capital 669. 670      O     O 

Reserve  Fund  and  Undivided  Profits         ..  375,680   11     8 

Reserve  Liability  of  Proprietors       ..         ..  606,962    10    O 

REMITTANCES  made  by  CABLE. 
DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 

Branches  and  Ap^ents. 
BULLS  on  Australasia  NEGOTIATED  or  sent  for  collection. 
WErOSITS  RECEiVKD  for  periods  and  at  rates  which  may  be  asoert»ln«d 

on  application,  and   Banking   Business   of   every  descrtplion    ooaduftted 

with  .\i] straits. 

■x<xie:    svock    E:3i:cixA.XTOE:. 

NOTICE. 
MEMBERS  ot  the  STOCK  EXCHANGE  are  NOT  ALLOWED  to 
ADVERTISE  for  business  purposes,  or  to  issue  Circulars  or  Business 
Communications  to  persons  other  than  their  own  Principals.  Persons  who 
advertise  as  Brokers  or  Share  Dealers  are  Not  Members  of  the  Stock  Exchange 
or  in  any  way  under  the  control  of  the  Committee  Members  issuing  Contract 
Notes  are  required  to  use  such  a  form  as  will  provide  that  the  words  *'  Memljer 
of  the  Steels  Exchange,  London,"  shall  immediately  follow  the  signature.  A 
List  of  Members  of  the  Stock  E,xchange  who  are  Stock  and  Share  Brokere 
may  be  seen  at  the  Bartholomew-lanff  entrance  to  the  Bank  of  England,  or 
obtained  on  application  tu 

EDWARD  SATTERTHWAITE, 
Secretary  to  the  Committee  of  the  Stock  Exchange 
Committiie  Room,  Ttie  Stosk  Exchange,  London,  E.C.  2. 


^4 XTbe  investors'  TRev>iew« januarv  5, 19.8. 

THE  MEXICAN  EAGLE  OIL  COMPANY, 


LIMITED. 

(Compania  Mex'cana  de  Petroleo  "El  Aguila,"  S.A.) 


SHARE  CAPITAL,  Authorised  and  Issued,  $50,000,000  (Mexican), 

DIVIDKD     INTO 

850,000    8%    Participating  Preference  Shares  of  $10  each,  fully  paid  -  $8,500,000 
4,150,000    Ordinary  Shares  of  $10  each,  fully  paid         -         -         .         $41,500,000 

The  Issue  of  an  additionnl  1,000,000  Ordinary  Shares  has  been  authorised 
to     meet     the    conversion      rights     attached     to     the     Mortgage     Bonds. 


DIRECTORS. 

I  J 

I  I 

GEORGES  BfiNARD,  Paris.  '  |  \V.  MORCOM,  Mexico  City. 


T.  J.   RYDER,  Mexico  City  |  JOHN  B.  BODY,  Mexico  City. 

(■'resident  and  Managing  Director).  ,         „    ,.,,.,,  -r.  .t,^^,^^    -..     •       ^-^ 

FERGUS  L.  ALLAN,  Mexico  City.  I  ^ic.  t.  DIAZ  BARROSO,  Mexico  City. 


REPORT  OF  THE  DIRECTORS 

for  the  Year  ended  June  30th,  1917. 

AH    figures    contained    !n    this  Report  are  stated  in  Mexican  Gold  Pesos,  which  have  a  par  value  of 
'2^d.  Sterling,  or  49.75  cents  U.S.  Gold. 

(Mexican  Gold.) 

The  profit  on  Trading  for  the  year  is        $20,521,647.60 

Less — 

Transfer  to  Field  Redemption  Account 84,922.250.30 

Transfer  to  Depreciation  Reserve  Account  2,000,000.00 


6,922,250.30 


»13,599,397.30 
Add  Interest,  Discount,  &c 230,633.62 


813,830,030.92 
Less  Interest  on  Sterling  First  Mortgage  Bonds  881,632.64 


Net    Profit    for    Year    after    providing    for    Depreciation    and     Field 

Redemption  AccounU         $17,948,398.28 

Less — 

Transfer  to  Legal  Reserve  Account $572,419.91 

Transfer  to  Subsoil  Rights  Redemption  Account 1,000,000.00 

Provident  Fund  Reserve  500,000.00 

2,072,419.91 


$10,875,978.37 
To  which  is  added  the  balance  brought  forward  from  last  year  of     5,627,440.89 

BALANCE    AVAILABLE  $16,503,419.26 

Deduct — 
First  Dividend  of  4  per  cent,  on    Preference   Share   Capital  paid 

31st  December,  1916 8340,000.00 

Second  Dividend  of  6  per  cent,  on  ditto,  paid  30th  June,  1917...  510.000.00 

First  Dividend  of  4  per   cent,   on   Ordinary  Share    Capital,    paid 

31st  December,  1916  1,660,000.00 

Second  Dividend  of  6  per  cent,  on  ditto,  paid  30th  June,  1917...       2,490,000.00 


5,000.000.00 


BALANCE  UNAPPROPRIATED  $11,503,419.26 


which  it  is  proposed  to  apply  as  follows: — 

Final  Dividend  of  10  per  cent,  on  Preference  Share  Capital,  making  20  per  cent 

for  the  year 
Final  Dividend  of  10  per  cent,  on  Ordinary  Sharp  Capital,  making  20  per  cent 

for  the  year         ' 

Carry  forwaid  to  next  year  


8850,000.00 

4,150,000.00 
6,503,419.26 

811,503.419  26 


Drilling  operations  have  again  been  limited  during  the  year,  but  the  Company  has,  nevertheless,  an  ample 
•developed  reserve  of  oil  for  all  its  requirements. 

During  the  year  ended  June,  1917,  237  vessels  have  loaded  at  the  Company's  Deep  Sea  Station  at 
Tuxpam,  against  230  the  previous  year. 

The  Refineries  and  the  New  Topping  Plant  at  Tuxpam  have  worked  satisfactorily. 

The  general  extension  work,  however,  has  been  restricted  by  the  many  difficulties  of  obtaining  delivery 
and  shipment  of  material,  and  these  conditions  must  be  expected  to  continue  so  long  as  the  present  abnormal 
■world  demand  continues. 

The  deep  gratitude  of  the  Shareholders  is  again  due  to  the  Officers  and  Staff  in  Mexico,  who  have  so 
long  and  so  loyally  served  the  Company  under  very  trying  conditions. 

By  order  of  the  Board, 

THOS.   J.    RYDER,  President. 
Avenida  Juarez,  92/94,  Mexico  City,  19th  December,  1917. 


Copies  of   this    Report    and    of   the    Accounts    may    be   obtained   on    application    to   the    Financial    Agents   of    the    Company, 
S.   Pearson  and  Son,   Ltd.,  47,   Parliament  Street,   London,  S.W.I. 


Vriuted  by  tl>e  St.'  Clements  Press,  Ltd.,  Portuga\  Street.  Kingsway,  London,  W.C,  for  the  Proprietor  of    i  he  Investors'  Review,  and  Published 
by  The  Pioprieior,  Norfolk  House,  Nortolk  Street,  Strand,  W.C.  ».— January  5,  1918.  IN  1S61 


XLhc 


Jnpestore'  1Re\?tew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


Vol.  XLI.— No.  1,045.] 

NEW  SERIES. 


rR«glstered  ai  an 
L    Menspaper.    J 


SATURDAY,  JAN.   12,   1918. 


[Price  6d. 


CONTENTS. 


Passing  Events : — National  War  Bond  Sales  —  Revenue  — 
Brisbane  Electric  Tramways  —  British  Overseas  Banks' 
Association  —  No  Decorations  for  America  —  Dearth  of 
Shipping  in  South  America  —  Egyptian  Matters  —  Bullion 
Markets  in  1917  —  Frederick  Tattersall  —  National  Steam 
Car  —  South-Eastern  Rand  —  Union  Discount  Co.  (pp. 
27-30).  . 

Leading  Articles: — A  "Peace"  Dutch  Auction  ■ —  Capital 
Conscription  and  the  Development  of  Our  Land  — 
London  Gas  Bills  —  British  Columbia  Electric  Railway  — 
By-the-Way  War  Notes  —  Banking  Dividends  — ■  President 
Wilson's  Fourteen  Points  (pp.  30-5,  41,  and  43-4). 

Money  and  Credit  Notes : —  Discrimination  in  Favour  of 
Foreign  Money  ' —  Abundant  Credit  —  Bank  Return  — 
Foreign  Exchanges  —  Sir  R.  Kindersley  on  Premium 
Bonds  —  Mr.  FaithfuU  Begg  on  Currency  Notes  —  Silver 
(pp.  36-9). 

American  Business  Notes  : — Earl  Reading  as  Special  Ambassador 
—  United  States  Loans  to  the  Allies  —  President  Wilson's 
Address  to  Congress  —  United  Fruit  Co.  (pp.  41-2). 

The  Week's  Stock  Markets  (pp.  39-  0). 

London  Produce  Markets  (pp.  40-1). 

The  Week  in  Mines  (p.  42). 


Mining  News : — Rhodesian  Mineral  Output  —  Bwana  M'Kubwa 
<'opper  —  Welgedacht  Exploration  —  Charterland  and 
General  Exploration  —  West  African  Gold  Output  — 
Rambutan  —  Cynon  Colliery  —  Knights  Deep  —  Mount 
Morgan  (pp.  42-3). 


Insurance  News  : — Friends'    Provident  —  United    Insurance 
—  Fire  Losses  in  the  United  Kingdom  (pp.  44-5). 


Co. 


Tea,  Oil,  and  Rubber  : — Rubber  Market  —  Trinidad  Leaseholds 
—  Asahan    Rubber    Estates  —   Kelantan    Rubber    Estates 

(p.  45-6). 

What  Balance  Sheets  Tell : — New  Zealand  and  River  Plate 
Land  Mortgage  Co.  —  Cordova  Land  Co.  —  Rossleigh  — 
Grand  Junction  Canal  Co.  —  Angostura  Bitters  (Dr. 
J.  G.  B.  Siegert  and  Sons)  (p.  47). 

Company  Meeting; — Bukit  Tambun  Estates  (p.  47). 

Dividends  Announced  (p.  44).        ,^ 

Answers  to  Coirespondents  (p.  45). 

Books  Received  (p.  45). 

Public  Income  and  Expenditure  (p.  46). 

Oilfields  Production  (p.  47). 

Traffic  Returns  (p.  48). 


BANK  OF  NEW  SOUTH  WALES 

Eitabliihti  U17. 

Paid  up  Capital £3,894,980 

2,800,000 

3,894,980 


Reserve  Fund 
Reserve    Liability 
Proprietors     ... 


of 


JB1 0,589,960 

Head  Office :  SYDNEY,  NEW  SOUTH  WALES. 
London  Directors : 

Sir  Frederick  Green,  Chairman, 
H.  L.  M.  Tritton,  Esq.  Walter  S.  M.  Burns,  Esq. 

David  George,  Manager.  J.  S.  Campbell,  Secretary. 

Halkerstone  Meldp.uv,  David  Geddib, 

Assiitant  Manager.  Accountant. 

The  Bank  has  337  Branchei  and  A^enoiei  in  the  Australian  States, 
New  Zealand,  Fiji,  Papua  (New  Guinea),  and  London,  and  Agents  and 
Correspondents  all  over  the  World,  on  whom  the  London  Office  grants 
Circular  Letters  of  Credit  and  Circular  Notes.  Also  issues  Draits  on 
demand.  Makes  Mail  and  Cable  Transfers.  Negotiates  and  Collects 
Bills  of  Exchange.  Receives  Deposits  tor  Fixed  Periods  on  terms 
which  may  be  known  on  application,  and  transacts  every  description  of 
Australian  Banking  business. 

London  Offloe:  29,  THREADNESBDIiB  8TREE>T,  B.C.  2. 


BANK    OF    NEW    ZEALAND. 

{Incorporated  July  2gth,  i86i.) 
BANKERS  TO  THE  NEW  ZEALAND  GOVERNMENT, 
London  Office:  i,  Queen  Victoria  Street,  London,  E.C.4. 

AUTHORISED  CAPITAL       £5,500,000 

SUBSCRIBED  CAPITAL. 

Four  per  Cent.  Guaranteed  Stock         f  529,988 

"A 'I   Preference  Shares  issued  to  New  Zealand  Government        ..       500,000 
"  B''  Preference  Shares  issued  to  New  Zealand  Government         ..       250,000 

Ordinary  Shares 1,500.000 

r2,779.9g8 

Reserve  Fund  and  Undivided  Profits    . .         .£2,246,595 

Negotiates  and  collects  Bills  of  Exchange. 

Grants  drafts  on  its  Offices  in  New  Zealand,  Australia,  Fiji  and  Samoa.    Re- 
niiitanoes  made  by  telegraphic  transfer. 

ALEXANDER  KAY.  Manager 

The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  1880. 

Authorised  and  Issued  Capital,  £6,000.000. 

Paid-up  Capital,  /a, 000,000;  Reserve  Fund,  £1,980,000;  together    £3,980,000 

Reserve  liiability  of  Proprietors , 4,000,000 

Total  Capital  and  Reserves £7,980,000 

HEAD  OFFICE   -        -        -        71 .  CORNHIL.L,  LONDON,   E,n.  3. 

DRAFTS  are  {(ranted  on  the  Bank's  Branches  throughout  the  Australian 
St«tes  and  Domininn  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  rude. 

BILLS  are  puicbased  or  sent  for  Collection. 

DEPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
on  application. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the  Imperial 
Japanese  Government,  1899. 


HEAD   OFFICE 


TAIPEH,   FORMOSA. 


BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  i86a. 

Authorised  Capital  £4,000,000 

Paid-up  Capital 1,800,000 

Reserve  Fund    2.000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendoia,  Concordia,  Bahia 
Blanca,  Cordoba,  Tucum&n,  ParanSi,  Barracas  (Buenos  Aires),  Once 
(Biranos  Aires),  Boca  (Buenos  Aires),  Calle  Sania  Fe  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires).  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agency),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro,  Sao  Paulo,  Santas,  Por- 
nambuco.  Para,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (i6  Rue  Halevy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.G.  2. 


^ 

THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 


(Registered  in  Japan.) 
ESTABLISHED    1880. 


Subscribed  Gapltal        Yen  48*000,000 

Capital  Paid  Up Yen  36,000,000 

Reserve  Fund  Yen  22,100,000 


Antung-Hsien. 

Bombay. 

Calcutta. 

Changchun. 

Dairen  (Dalny). 

Fengtien  (Mukden). 

Hankow. 


Head  Office:   YOKOHAMA. 
Branches  and  Agencies  at 


Harbin. 

Honolulu. 

Hong  Kong. 

Kobe. 

Liaoyang. 

Los  Angeles. 

Lyons. 


Nagasaki. 
Newchang. 
New  York, 
Osaka, 
Peking. 


Shanghai. 

Singapoffe. 

Sydney. 

Tiehlinf. 

Tientsin. 


Ryojun  (Port  Arthur).  Tokyo. 
San  Francisco.  Tsinanfa. 

Seattle.  Tsingtau. 

The  Bank  buys  and  recsives  for  collection  Bills  of  Exchange,  issues  Draits 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere 
and  transacts  General  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  appHcatica. 
London  Office:  7,  BISHOPSGATE.  E.C.i. 

K.  TATSIJMI.  Mfteacer. 


26 


XLbc  Jnvestors'  IReview, 


January  12,  1918. 


LONDON  COUNTY  &  WESTMINSTER  BANK  LIMITED. 

BSTABtilSHBD    IM    1838. 

AUTHORISED  CAPITAL  £17,000,000,  in  850,000  Shares  of  £20  each. 

Reserve  exceeds        -        -        -        £4,700,000. 

Chairman:  WALTER  LEAF.  Esq. Deputy  Chairman:    Sir  MONTAGUE  TURNER. 

HEAD    OFFICE  :     41,    LOTHBURY,    E.G.  2. 

Joint  General  Managers:     F.  J.  BARTHORPE.  J.  W.  BUCKHURST. 

Foreign  Branch  Office :    82,  Cornhill,  E.G.  3. 

The  Bank  is  represented  by  Branches  or  Agents  in  all  the  Principal  Cities  and 

Towns  of  the  United  Kingdom  and  has  Correspondents  throughout  the  World. 

Spanish  Branches  :— Barcelona :  Paseo  de  Gracia  8  &  10.    Madrid  :    Calle  de  Alcala  ,43. 

Affiliated  in  Ireland  j    Ulster  Bank  Limited. 

Affiliated  in  France  :    London  Gounty  and  Westminster  Bank  (Paris)  Limited. 
Paris  :  22,  Place  Vendome.       Bordeaux ;    22/24,  Cours  de  I'lntendance. 

EYERY  DESCRIPTION  OF  BRITISH  AND  FOREIGN  BANKING  BUSINESS  TRANSACTED 

EXKCUTOR    AND    TRUSTEE!     DUTIES    UNDERTAKEN. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office :  15,  Gracechurch  Street,  London,  E.C.  3. 


Capital  Authorised 
Capital  Issued 
Capital  Paid  Up  ... 
Reserve  Fund 


£t,500,000 

1,125,000 

562,500 

600,000 


Branches  t  , 

INDIA.   BURMAH,   CEYLON,    STRAIT^    SETTLEMENTS 
CHINA.    AND    POkT    LOUIS.    MAURITIUS. 

The  Bank  buys  and  sells  Bills  of  Exchange,   issues   Letters   of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business   in  connection  with 

the  Kast,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.     Rates  for  other 

periods  on  application. 

On  ouppent  Rooounts  interest  is  allowed  at  2  percent,  per  annum  on 

daily  balances. 


ENGLISH,    SCOTTISH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

KSestdl  0<Hoe— 38,  XJombmrcI  a*x>««*,  E.C.  3. 

Subscribed  Capital £1.078,87;    0    o 

Paid-up  Capital 539i437  10    o 

Further  Liability  ot  Proprietors     . .        . .  539.437  10    o 

Reserve  Fund 500,000    o    0 

LErrERS  OF  CREDIT  and  DRAFTS  on  the  Branches  and  Aeenoles  of 
the  Bank  in  Australia  can  be  obtained  at  the  Head  Office,  or  ihroLgh  the  Agents 
of  the  Banlt,  In  the  chief  Provincial  towns  throughout  the  United  Kingdom. 
REMITTANCES  made  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOTIATED  or  forwarded  foe  COLLECTION. 
BANKING  and  EXCHANGE  Business  of  every  description  truisaoied  with 
Australia, 

E.  M.  lANION   Manager. 


THE   BANK   OF  ADELAIDE. 

(Incorporated  by  Act  of  Parliament,  1865.) 
AuthoriMd  CaplUI         -    S1.(M«,000.  Subtoribed  Capital    •    -    £(25,000 

Paid-up  Capital        £yM.ooo 

Reserve  Fund  sao.cqo 

3^1,040,000 

Uncalled  Capital .,        ..  125,000 

Reserve  Liability  of  Shareholders       ..        ..        ..  625,000 

fi,790,ooo 

London  Office— 11,  Leadenhall  Street,  E.C.  3. 

BILLS  on  Australasia  pucchasetl  or  collected. 

DRAFTS  issued  and  REMITTANCES  cabled. 

DEPOSITS  received  for  filed  periods  at  rates  tobea^certainrd  on  application. 

PERCY  ARNOLD  Manager. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

Hnd  Offic*— f  I  Old  BitMd  Straat,  H.C  a. 

Subsoribed  Capital £1,276.747     10    O 

Paid  np Capital 669,670      O     O 

Reserve  Fund  and  Undivided  Proau         ..  375,680   11     8 

Reserve  Liability  of  Proprietors       ..         ,.  606,963    10    O 

REMITTANCES  made  by  CABLE. 

DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  istaed  upon 
Brancltes  and  Agents. 

HtLLS  on  Australasia  NEGOTIATED  or  sent  for  ttollection. 

i>nrOSITS  RECdIVEU  for  periods  and  at  rates  which  may  be  asaertainad 
on  application,  and  Banlung  business  of  every  dascnptioa  ooadvoted 
witb  Australia, 


ROYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  1727. 

PAID-UP  CAPITAL £2,000,000 

REST  AND  UNDIVIDED  PROFITS  914.968 

DEPOSITS 26,177,885 

Head    Office:    ST.    ANDREW   SQUARE,  EDINBURGH. 
Cashier  and  General  Manager,  A.  K.  Wright.         Secretary,  J.  B.  Adshead. 

London    Office:    3,    BISHOPSGATE,  E.C.  2. 
William  Wallace,  Manager.  Alex.  Dick,  Deputy-Manager. 

Glasgow   Office:     EXCHANGE  SQUARE. 
A.  Dennistoun,  Agent.  Thomas    Lillie,  Sub-Agent. 

1B7  Brancbea  thpou^out  Scotland. 
Banking  Business  of  every  description  transacted.  Accounts  ot>ened  and  AgenOy 
business  undertaken  for  Foreign  ind  Colonial  Banks  and  oth"r  financial  estab- 
lishments. Drafts,  Circular  Notes,  and  Letters  ot  Credit  issued —  availably 
throughout  the  world.  Cable  transfers  are  also  made.  Deposits  reoeivedai 
interest  repayable  at  call  or  at  notice.    Corrsspoiidence  invited. 


THfi 


WESTERN     AUSTRALIAlfl     bAIIK. 

Established  1S41. 
Paid-up  Capital    ..    £380,000    0    0     25.000  Shares  of  f  10  each. 
kaaarva  Fund  ..     ..  SIOO.OOO    0    0  |  Reserva  Proflta    ..  Ctt,0U 

Basarvaa  uabllltT  of  Shareholders  £280.000. 

Drafts  Issued    Kemiltiinces  cabled.  Bills  negotiated   or   collected,     Deposit* 

received  tor   fi»fd  pnncd*  at  rates  to  De  ascertained   on   application,  and  all 

banWing  and  exckange  buMness  connected  with  Western  Australia  condactod 

throuigb  the  Londnn  Aosnts.Tha  Bank  efldalalda.ll,  Laadanhall  St..  B.C.t. 


NOTICES. 


ifflPERIAL   JAPANESE  GOVERNMENT    Ah 
CENT.  STERLING  LOANS  OF  1905. 


PER 


The  YOKOHAMA  SPECIE  BANK,  LIMITED,  LONDON, 
announces  that  ;^338,000  4i  per  cent.  Sterling  Bonds  of  the  1st 
series,  and  ^■162,000  4J  per  cent.  Sterling  Bonds  of  the  2nd 
series  have  been  pu  chased  on  behalf  ol  the  Imperial  Japanese 
Government  for  the  purpose  of  cancellation,  and  the  said  Bonds 
are  now  cancelled.  . 

The  quantities  and  denominations  of  the  Bonds  so  cancelled 
are  the  following; — 


First  Series. 

34  of  500 
1,003  of  200 
1,204  of  100 
London,  8th  January,  1918. 


SECOND  Series. 

£ 

447  of  200 
574  of  100 
760  of  20 


THE  UNION  BANK  OF  MANCHESTER,  LIMITED. 

A  Dividend  at  the  rate  of  £l  per  Share,  less  Income  Tax,  has 
been  declared  on  the  present  paid-up  Capital  of  this  Company 
(viz.,  ;^11  per  share)  for  the  Half-year  ended  31st  December  last, 
and  will  be  payable  on  and  after  Monday,  the  2Ist  instant. 

P.  FORRESTER,  Managing  Director. 

Manchester,   7th  January,  1918. 
N.B.— The  Transfer  Books  are  Closed  till  after  the  21st  instant. 


tTbe  5nveetore*  IRevfew, 


Vol.  XLI. 

»*m  tariu. 


No.  1,045. 


SATURDAY,  JAN.   12,  1918. 


("1fXrp.V.')  Price  6d. 


PUBLISHER'S    NOTICES 

Ibe  JnVeBtOrS'  "KeVteW  is  a  subscription  Joumal.  and  will 
De  delivered  to  subscribers  in  Londsn  by  the  first  post,  or  sent  to 
the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning, 
an  the  following  terms  : — 

One  Year,  £1  5s.  Od.    Six  Months,  128.  6d.    Three  Months,  6s.  6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year,  £1  8s.  Od.    Six  Months,  14s.  Od.    Three  Months,  78.  Od. 

Short  of  Three  months  thf    Price  is  8Jd.  per  Copy  Inland,  and 

7d.  Aoroad,  Post  Free. 

Cloth  cases  for  binding  the  Half  Yearly  Volumes  price  la.  6d., 

postage  4d.  extra.    Bound  Volumes  16a.  6d.,  or  16a.  3d.  post  free. 

Cheques  and  P.O.  Drafts  should  be  made  payable  to 

"Investors'  Review," 

Norfolk  House,  Norfolk  Street, 
London,  W.C. 

Telephone  No. :  Telegraphic  Address : 

Gerrard  9132.  "  Unveiling,  London." 

The  Editor  cannot  unaertake  to  return  rejected  com- 
munications. 

Letters  from  correspondents  must.  In  every  case,  be 
authenticated  by  the  name  and  address  of  the  writer. 

The  Editor  desires  It  to  be  understood  that  a  charge  Is 
made  tor  the  insertion  of  reports  under  the  beading  of 
Company  Meetings,  and  they  cannot  accept  responsibility 
for  statements  made  therein. 


ANSWERS   TO   QUERIES. 

One  Reply    to    One   Question  —  One    Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  Icept,  as  securities  cannot  be  named  with  comments  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issue 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  in  advance,  a 
Key  to  the  previous  week's  replies  will  be  sent  early  in  the 
following  weelc. 

Deposits  of  "  Query  Money  "  may  be  made  in  advance,  and  will 
be  aclcnowledged  in  the  "Answers"  column.  Notice  of 
exhaustion  will  also  be  given  there. 

Telegpame  advising  a1x>ut  new  securities  cost  Half-a> 
Cpown  each,  plus  cost  of  the  telegram. 

Private  Letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
Shilling*,  but  for  this  three  questions  will  be  answered  if 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Half^a-Crown  pep  question. 

Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  on  terms  varying  according  to  the  time 
taken. 

Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


Passing   Events. 


Last  week's  sales  of  National  War  bonds  were  re- 
markably good.  Of  the  Banik  of  England  issue  no  less 
than  ;£r23,88i,8og  worth  were  sold,  that  sum  represent- 
ing 16,428  distinct  applications,  or  4,674  more  than  in 
the  preceding  week.  The  increase  in  the  money  appli- 
cation was  ^'14,366,234,  and  the  total  amount  supplied 
to  the  Government  through  this  instrument  of  debt  is 
now  ;£?2i  1,201,543,  furnished  by  210,677  applicants. 
This  is  good,  but  only  good  so  far  as  it  goes.  The  mere 
number  of  applications  reveals  how  small  a  segment  of 
the  money-earning  community  is  even  now  being 
reached  by  the  employment  of  every  exciting,  rousing 
device  known  to  or  invented  by  the  modern  advertise- 
ment compiler.  StiM,  ;^2i  1,000,000  is  something  to  go 
on  with,  although  it  unfortunately  does  not  prevent 
further  increases  in  the  floating  debt.  The  Post  Office 
also  sold  ;^5 19,000  worth  of  bonds  last  week  to  20,000 
applicants,  and  that  brings  up  its  total  contributions  to 
date  to  ;^'i  1,616,000,  contributed  by  501,000  sub- 
scribers. As  for  the  War  Savings  certificates,  the  num- 
ber of  them  sold  was  931,188,  raising  the  aggregate  to 
137.329.321  fifteen-and-sixpences.  Last  week's  sales 
of  National  War  bonds  were  the  highest  ever  attained, 
beating  the  figure  for  the  dividend  week  of  December 
by  nearly  ^850,000.  It  is  probable  that  we  have  now 
seen  the  highest  figure  for  some  time  to  come,  because 
the  collection!  of  the  taxes  is  now  at  full  pressure  and 
will  lighten  many  pockets  between  now  and  the  end  of 


Last  week,  for  example,  the  income  from  taxation 
and  State  monopolies  came  to  ;^i5,99i,opo,  and  that 
wa^  oqly  the  b.eginning  of  the  flood,  bepause,  rnpst 
fjranciies  of  revenue  were  of  comparatively  low  fertility 
fjccept  property  and  income-tax,  which  gave 
j^7,49i,oqp.  E?ccess  profits  duty  and  munition  levy, 
however,  turned  in  only  ^2,707,000,  and  the  yield  from 
Excise  was  only  ;^?66,ooo,  apd  from  Customs 
^953.000.  Miscellanfeous  also  provided  but  little,' and 
all  these'  sotirce's  of  income  should  do  better  io  the 
coming  weelcs.  '  Against  this  income  from  taxation 
there  was  a  total  expenditure  of  ^121,785,000,  most  of 
it,  as  iLsual,  renewal  of  floating  debt.  Thus 
;^67,G94,ooq  of  supply  Trea$ijry  bills  were  paid  off  out 
ft(  tht  ffesb  is^uc,  which  amount^   to    £%3,^^%Q9Q- 


There  was  also  ;£,"i 0,000,000  of  temporary  War  loans 
paid  off,  and  that  was  done  with  the  help  of  no  more 
than  ;^2 ,000,000  freshly  borrowed,  because 
^20,245,000  came  in  from  sales  of  National  War  bonds. 
Nevertheless,  the  nett  increase  in  the  Treasury  bills 
debt  was  ;^i5,724,ooo,  allowing  for  ;£,'i3i,ooo  cancelled 
but  not  brought  into  the  account.  This  brings  up  the 
total  weight  of  Treasury  bills  carried  by  the  free  money 
markets  of  the  world  to  ;^"i, 073,899, 000,  and  we  do  not 
see  how  any  material  difference  is  to  be  produced  in  this 
mass  for  the  current  expenditure  on  the  business  of  the 
Government — on  the  debt  and  the  war — was  last  week 
;^44,6i4,286,  of  which  ;^40,66o,ooo  was  debited 
against  supply  services  alone,  or  ;^5,8o8,ooo  a  day. 
The  total  of  ;^44,6i4,ooo  was  reached  by  adding  debt 
charges.  These  aggregated  nearly  ;^4,ooo,ooo.  As  a 
little  more  money  was  provided  by  one  agency  or 
another  than  was  actually  .spent  in  the  week,  the  Ex- 
chequer balances  were  raised  by  ;^799,8oi  to 
;^'i6,383,824. 


Some  years  ago  the  people  of  Melbourne  and  'Vic- 
toria tried  to  get  the  Gas  Co.  there  "  on  the  cheap," 
because  it  was  mostly  owned  in  the  Old  Country. 
They  failed,  thanks  to  vigorous  remonstrances,  but  the 
working  man  everywhere  seems  to  be  insufficiently 
educated  to  learn  wisdom  by  experience.  So  he  forgets 
his  lesson,  and  accordingly  we  have  the  people  of 
Queensland  ready  to  play  the  same  trick  with  the 
Brisbane  Electric  Tramways.  These  tramways  were 
built  with  British  capital,  under  agreement  with  the 
then  Government  of  Queensland,  and  they  have  served 
the  people  of  Brisbane  well.  Probably  the  maximum 
fare  of  "  2d.  per  mile,  or  fraction  of  a  mile,"  became 
too  high  in  time,  although  it  may  not  have  been  so  at 
the  start,  but  we  have  no  evidence  that  the  company 
has  ever  charged  maximum  fares.  The  ordinary  busi- 
ness instincts  of  it$  management  would  have  forbidden 
that.  The  move  has  been  made  simply  because  the 
Labour  Government  in  Queensland  thinks  it  sees  the 
chance  to  buy  th§  property  at  its  own  valuation.  Two 
Bills  have  b^en  introduced  into  the  Legislature;  one 
providis  fox  a  drastic  revision  of  fares,  and  stipulates 
that  thfv  shall  be  reduced  to  a  point  which  in  the 
orinion  of  a  judge  of  the  Supreme  Court  will  restrict 
thQCohif.  at.y's  ptpfits  to  5  per  cent,  of  the  value,  of  'h-j 
tranP'^y.g.ys,  such  wftlu?  t<?  b?  assessed  by  the.  said  ju<3g'^i 


28 


Hbe  Snvestors'  H^eview. 


January  12,  1918. 


from  whose  decision  no  appoal  is  to  be  allowed.  In 
drawing  up  his  judgment  he  must  allow  nothing  for 
goodwill,  or  any  similar  considerations,  and  it  is 
further  provided  that  should  the  company  make  more 
than  5  per  cent,  profit  in  any  year  the  excess  is  to  be 
applied  in  improvements  or  extensions,  or  in  default  to 
be  forfeited  to  the  Government.  That  is  a  pretty  sweep- 
ing measure  of  confiscation,  is  it  not?  Having  thus 
destroyed  the  value  of  the  property  another  Bill  directs 
that  on  SJeptember  20,  1920,  the  original  date,  the 
Government  shall  have  the  option  to  pay  for  the  pro- 
perty acquired  at  this  shrunk  valuation  in  Queensland 
4  percent.  21-year  debentures.  We  hope  the  working- 
class  Government  will  pau.se  before  it  rushes  into  a 
piece  of  short-sighted  folly  of  this  description. 


On  the  17th  of  last  month  a  meeting  was  called  at 
which  resolutions  were  passed  to  constitute  an  asso- 
ciation to  be  called  "  The  British  Overseas  Banks' 
.Association."  The  object  sought  is  to  promote  the 
general  interests  of  the  banks  embraced  in  this  asso- 
ciation. It  is  a  laudable  object,  and  in  accordance  with 
the  bent  of  things  in  these  times.  The  more  business 
interests  of  all  kinds  can  be  brought  to  work  in  har- 
mony and  mutual  helpfulness  instead  of  in  jealous 
rivalry,  the  better  for  nation  and  Empire  will  it  be. 
The  following  gentlemen  were  elected  to  form  the 
general  committee  of  this  new  association,  to  which  we 
wish  every  success  : — Messrs.  C.  Cambie,  Canadian 
Bank  of  Commerce ;  L.  Couper,  Bank  of  British  West 
.Africa,  Ltd'. ;  Chas.  H.  Hewett,  Colonial  Bank ; 
R.  J.  Hose,  Anglo-South  American  Bank,  Ltd. ;  S. 
Rogers,  Imperial  Bank  of  Persia  ;  F.  Shipton,  .Standard 
Bank  of  South  Africa,  Ltd.  ;  G.  H.  Soul,  Anglo-Egvp- 
tian  Bank,  Ltd.  ;  T.  H.  Whitehead,  Chartered  Bank  of 
India,  Australia,  and  China  ;  A.  Willis,  National  Bank 
of  New  Zealand ;  and  A.  C.  Willis,  Union  Bank  of 
Australia,  Ltd.  Mr.  T.  H.  Whitehead  was  ap- 
pointed chairman  and  Mr.  Francis  Shipton  hon. 
secretary  and  treasurer. 


In  the  eagerness  of  our  present  Government  to  pro- 
claim in  all  the  ends  of  the  earth  its  essentially 
Teutonic  contempt  for  true  democratic  ideals,  it  seems 
to  have  attempted  to  confer  British  decorations  upon 
certain  men  of  the  United  States  Navy  in  acknow- 
ledgment and  reward  of  their  services  in  encounters 
with  enemy  submarines,  but  the  attempt  was  a  fj^ilure. 
Mr.  Daniels,  Secretary  to  the  United  States  Navy,  de- 
clined to  recommend  to  Congress  changes  in  the  laws 
of  the  Republic  which  would  permit  the  receipt  of  such 
honours.  In  making  this  announcement,  on  Novem- 
ber 27  last.  Secretary  Daniels  made  the  following  signi- 
ficant observation  : — "  An  unhealthy  rivalry  for  these 
honours  might  be  created  among  American  officers. 
Thev  might  set  great  store  by  them,  and  distinctions 
might  be  created  which  might  be  harmful  to  the  morals 
of  the  Service."  Surelv  a  most  proper  and  .seasonable 
reminder  that  a  Republic  is  not  free  to  grade  and 
degrade  its  citizens. 


The  dearth  of  shipping  is  the  chief  difficulty  with 
which  South  American  countries  have  to  contend  at 
the  moment,  and  it  is  interesting  to  note  the  announce- 
ment made  a  short  time  ago  in  Montevideo  that  an 
arrangement  had  been  made  through  the  Uruguayan 
Ministry  for  Foreign  Affairs  whereby  adequate  tonnage 
for  the  exportation  of  Uruguayan  produce  is  said  to 
be  assured  for  the  next  few  months.  Negotiations,  it 
is  understood,  have  also  been  entered  into  with  the 
Governments  of  Great  Britain,  France,  the  United 
States,  &c.,  to  procure  the  export  of  the  gold  which 
v/ould  be  required  for  the  movement  of  Uruguay's 
exportable  surplus,  this  being  considered  the  most 
efTicacious  means  of  meeting  the  diflicultv  in  that 
country.  An  alternative  measure  is,  however,  ao- 
parently  under  consideration.  This  would  consist  in 
the  value  of  Uruguavan  export  calculated  in  Uruguayan 
gold  being  deposited  in  gold  cither  at  Uruguay  Lega- 
tions, or  in  whatever  banks  that  might  be  indicated 


for  the  purpose  by  the  Governments  of  the  countries 
to  which  the  produce  is  consigned.  Thereafter  the 
Banco  d'e  la  Rcpublica  del  Uruguay  would  issue  cur- 
rency notes  for  equivalent  value  as  and  when  the  de- 
mands of  the  local  market  for  more  currency  occurred. 
The  gold  deposited  abroad  would  be  regarded  as  part 
of  the  gold  holding  of  the  Banco  de  la  Republics*, 
guaranteeing  such  an  issue,  and  would  be  sent  to 
Uruguay  after  the  termination  of  the  war. 


In  Egypt  the  general  economic  position  has  under- 
gone a  vast  improvement  during  the  past  two  years, 
but  there  is  one  respect  in  which  the  country  has  fared 
badly  at  fortune's  hand.  Cattle  plague  has  given  a 
great  deal  of  trouble.  Outbreaks  of  this  character 
happen  not  infrequently,  and  with  present  day  remedies 
are  usually  got  under  with  more  or  less  ease,  but  in  the 
meantime  the  majority  of  the  Egyptian  cattle  markets 
have  been  closed,  and  the  published  receipts  of  the 
Egyptian  Markets  have  undergone  a  considerable  de- 
cline. Fortunately  other  branches  of  the  company's 
activities  are,  it  is  understood,  in  a  very  prosperous 
condition,  so  that  there  appears  to  be  no  need  for  the 
shareholders  to  look  only  upon  the  dark  side  of  the 
picture. 


In  their  report  on  the  bullion  markets  for  the  past 
year  Messrs.  Samuel  Montagu  and  Co.  point  out  that 
some  of  the  statistics  relating  to  gold  have  ceased  to 
be  available  during  the  past  three  years,  but  such 
details  have  temporarily  lost  their  importance  owing 
to  the  larger  place  occupied  in  the  world's  currencies 
by  paper  issues.  In  other  words,  credit  has  to  a  con- 
siderable extent  taken  the  place  of  metallic  reserves, 
now  that  the  expansion  in  the  value  of  commodities  has 
far  exceeded  the  capacity  of  the  precious  metals  to 
adjust  the  balance  of  trade.  All  the  belligerents  have 
to  a  greater  or  less  degree  resorted  to  paf)er  issues, 
and  in  this  connection  it  is  interesting  to  recall  a 
circular  issued  by  the  National  City  Bank  of  New  York 
last  September,  urging  that  "in  so  far  as  an  increased 
amount  of  currency  is  wanted,  it  should  be  supplied 
in  Federal  reserve  notes.  This  is  a  matter  in  which 
every  bank  in  the  country  should  lend  its  co-operation. 
These  notes  are  just  as  good  in  circulation  as  reserve 
money,  and  the  latter  should  be  withdrawn  from  circula- 
tion at  every  opportunity  and  forwarded  to  the  Federal 
reserve  banks,  thus  broadening  the  base  under  the 
credit  structure."  In  September  the  United  States  pro- 
hibited the  export  of  coin  and  bullion  except  under 
licence,  and  qlso  discouraged  the  practice  which  had 
grown  up  of  earmarking  gold  on  behalf  of  foreign 
interests.  The  Indian  Government  also  had  troubles  of 
its  own  to  contend  with,  inasmuch  as  the  balance  of 
trade,  which  is  normally  adverse  to  India,  swung 
heavily  in  her  favour,  and  this  had  to  be  met  by  raising 
the  minimum  rates  for  the  sale  of  bills  and  telegraphic 
transfers.  It  is  estimated  that  about  20  million  sove- 
reigns have  been  melted  down  in  India  since  the  be- 
ginning of  the  war,  in  order  to  supply  the  demand 
for  jewellerv,  and  owing  to  the  demand  for  increased 
currency  it  is  proposed  to  issue  i  and  2i  rupee  notes. 
The  approximate  world's  total  e'old  output  in  iqifi  was 
;^96,847,ooo,  to  which  the  British  Empire  contributed 
;J59, 700,000,  or  61.64  per  cent.,  as  against  60.21  jjer 
cent,  in  1915,  and  although  the  Transvaal  output  for 
the  past  year  has  fallen  off  about  ;^t,ooo.ooo  it  is 
estimated  that  the  world's  yield  will  reach  ;^96,7oo,ooo. 
Meantime  it  is  interesting  to  note  that  the  issue  of  gold 
coin  by  the  Royal  Mint  fell  from  ;£^42, 464,000  in  1912  to 
/18, 401, 000  in  1916,  and  of  the  latter  amount  only 
:^i, 554,000  was  for  England,  as  against  ;^33, 350,000 
in  191 2.  On  the  other  hand,  the  imports  of  gold  into 
India  up  to  the  end  of  November  last  amounted  to 
/!i9,896,ooo,  as  compared  with  ;^6, 421,000  for  the 
whole  of   1916,  and  with  ;f4,oi7,ooo  in   1915. 


As  regards  silver,  the  fluctuations  in  price  have  been 
larger  than  any  experietKed  for  a  very  long  time,  the 


January  12,  igi8. 


^be  Jnv^estor^'  "Review. 


29 


extremes  being  35^^d.  per  <5Z.  touched  in  March  and 
55d-  reached  in  September,  while  the  average  for  the 
whole  year  works  out  at  the  high  figure  of  40.85d.  The 
Indian  Mint  has  been  in  the  market  most  of  the  year, 
but  for  a  time  China  was  selHng  very  freely,  and  this 
induced  the  Indian  bazaars  to  indulge  in  "  bear  " 
operations.  Facts,  however,  went  against  them,  as 
the  U.S.  Government  came  into  the  market  with  fairly 

1^—^  large  orders  for  coina'ge  purposes,  and  there  was  also 
^K  a  good  general  demand,  especially  for  trade  purposes. 
^^  Then  China  entered  the  war,  and  had  to  buy  back  most 
of  the  silver  she  had  previously  sold,  and,  in  addition, 
the  Allies  had  to  provide  her  with  a  loan,  which  was 
largely  paid  in  bullion.  These  operations  raised  the 
price  to  the  highest  point  touched  since  1878,  but  since 
then  restrictions  have  been  imposed  on  imports  and  ex- 
ports, with  the  result  that  the  price  fell  back  to  about 
43d.  in  December.  There  has  been  a  great  falhng  off 
in  production  owing  to  the  disturbed  condition  of 
Mexico,  whose  output  has  fallen  from  70,000,000  ozs. 
to  less  than  half  that  amount,  but  it  must  not  be  for- 
gotten that  silver  is  mainly  a  by-product,  and  that  the 
most  powerful  factor  in  its  production  is  high  prices  for 
the  base  metals  with  which  it  is  found,  such  as  copper 
and  lead.  It  is  very  probable,  therefore,  that  the  out- 
put for  1917  will  exceed  that  of  the  previous  year,  and 
prove  to  be  about  200,000,000  ozs. 

IH  Since  the  beginning  of  the  year  numerous  cotton 
spinning  companies  in  Lancashire  have  taken  stock  for 
the  three  and  six  months  ending  December  31.  The 
figures  announced  have  shown  large  profits.  Mr. 
Frederick  W.  Tattersall,  of  Manchester,  has  prepared 
an  analysis  of  the  returns  published  by  20  leading  com- 
panies. The  share  capital  of  these  concerns  amounts 
to  ,^728,235,  and  loan  capital  to  ^^259,796.  All  the 
companies  have  made  a  profit,  and  on  share  capital  the 
average  profit  works  out  at  nearly  18  per  cent,  per 
annum,  whilst  on  share  and  loan  capital  combined  the 
profit  is  over  13  per  cent,  per  annum  after  allowing 
interest  on  loans.  It  may  be  said  that  a  similar 
analysis  of  the  figures  reported  at  the  end  of  last  June 
showed  a  profit  of  over  g  per  cent,  per  annum  on  share 
capital,  and  a  profit  of  nearly  7  per  cent,  per  annum,  on 
share  and  loan  capital  combined  after  allowing  interest 
on  loans.  The  machinery  in  these  mills  totals  to  nearly 
2,000,000  spindles.  Spmners  have  long  order  lists  at 
a  healthy  margin  of  profit,  and  future  stocktaking 
results    are    expected    to    be    encouraging. 


Things   do  not   seem   to  have   gone  very  well  with 
the  National  Steam  Car  Co.,  Ltd.,  in  the  year  to  Octo- 
ber 31  last,  although  a  year  ago  the  prospects  of  the 
company    appeared    to    be    exceedingly    encouraging. 
The  directors  are  evidently  still  groping  for  an  ideal 
engine  to  burn  coke  fuel,  and  it  is  triumphantly  stated 
that  since  the  end  of  the  financial  year  the  managing 
director  has  devised  a  new  and   simpler  plan  for  the 
adaptation  of  the  existing   'buses  to  escape  from  the 
ever-increasing   cost    of    oil    fuel.     We    are    not    very 
much  impressed,  although   it  may  be  freely  admitted 
that  every  kind  of  work  of  this  kind  is  terribly  handi- 
capped   at    present    by    the    high    cost    of    labour    and 
materials,  and  the  delays  in  delivery  of  supplies.     But 
from   all   the   previous   statements   made   by   the   com- 
pany we  had  gathered  that  the  fuel  problem  had  been 
completely  solved,  and  if  no  substantial  progress  can 
be  made  until  a  perfect  type  of  chassis  is  devised,  it 
is  quite  conceivable  that  every  bit  of  the  existing  stock 
will  have  to  be  scrapped,  and  that  can  scarcely  appear 
to  the  shareholders  as  a  very  businesslike  proposition. 
It  is  stated  that  the  works  at  Chelmsford  have  been 
.-ilmost  entirely  engaged  on  the  production  of  munitions, 
but  even  this  lucrative  business  has  not  helped  the  com- 
pany to  maintain  its  position  as  the  trading  profit  has 
fallen  ;^i7,5oo  to  ;^36,i3o,    following  ari   increase  of 
;^38,ooo  last  year.     The  nett  profit  is  reduced  practi- 
cally to  the  same  extent,  and-  the  dividend  is  lowered 
from  10  per  cent,  to  6  per  cent.,  leaving  ;^2,ooo  more 
at  ;^i4,400  to  be  carried  forward,   subject  to  special 
taxation  for  three  years,  the  amount  of  which  has  not 


vet  been  ascertained.     During  the  year  ;^ioo,ooo  new 

capital  was  issued,  but  that  has  not  yet  become  pro- 
ductive, and  no  doubt  most  of  it  will  be  required  for 
the  conversion  of  the  chassis  and  other  developments. 
The  money  has  been  invested  temporarily  in  War 
Loan  and  Treasury  bills,  but  the  cash  in  hand  is  down 
^"13,000  at  ;^6,4oo.  Other  changes  in  the  balance- 
sheet  are  unimportant. 

Advices  from  Johannesburg  having  reported  the  pro- 
visional identification  of  the  Van  Ryn  Reef  in  the 
Heidelburg  district,  South-Eastern  Rand,  opportunity 
lias  been  taken  by  interested  parties  to  impart  life  into 
a  number  of  small-priced  and  scarcely  known  Rand 
mining  and  exploration  shares,  but  it  is  to  be  hoped 
that  no  one  will  be  misled  by  these  transparent  efforts 
to  get  rid  of  dormant  properties.  The  Far-Eastern 
Rand  is  proving  extraordinarily  rich,  and  the  great 
width  of  the  ore  body  in  that  district  makes  its  work- 
ing highly  profitable^  though  the  depth  at  which  the 
reef  lies  involves  a  large  capital  expenditure.  But  it 
does  not  necessarily  follow  that  the  South-Eastern 
Rand  discoveries,  though  interesting,  are  proved  pro- 
perties, as  the  experience  of  the  Coronation  Syndicate 
reminds  us,  and  it  is  decidedly  a  case  for  "  going 
slow."  About  2,000  claims  are  stated  to  have  been 
pegged  out  in  three  blocks,  an'd  that  Messrs.  Goerz 
and  Co.  are  interested.  Meanwhile  the  problem  of  the 
low-grade  mining  properties  on  the  Rand  is  engaging 
the  serious  attention,  we  are  informed,  of  the  mining 
groups,  and  those  who  are  in  favour  of  something  be- 
ing done  to  enable  these  low-grade  mines  to  continue 
production.  An  increased  production  of  gold  is  neces- 
sary in  order  to  broaden  the  basis  upon  which  rests 
the  enormous  credit  structure  which  the  war  has  com- 
pelled us,  along  with  the  other  belligerents,  to  erect. 
While  the  war  lasts  the  proportion  of  gold  to  credit 
does  not  matter  so  very  much  owing  to  the  restrictions 
placed  upon  international  exchanges,  but  when  the  war 
comes  to  an  end,  and  these  restrictions  are  removed, 
the  question  will  become  increasingly  important. 

Although  the  Union  Discount  Co.  had  a  considerably 
larger  overturn  last  vear  than  in  1916,  the  gross  profits 
were  onlv  ;^2,300  up  at  ;^503,050.  Expenses  were 
rather  higher,  but  rebates  required  ;^8,ooo  less  at 
^^326,820,  and  as  /;i4,ooo  more  was  brought  forward, 
the  amount  available  for  distribution  is  ;^24.ooo  up  at 
;^igi,4QO.  Out  of  this  the  directors  place  ;^2S,ooo  to 
reserve,  while  last  year  ;^io,ooo  was  written  off 
premises  account,  and  the  dividend  of  13  per  cent.,  less 
tax,  is  repeated,  together  with  a  bonus  of  is.  per  share. 


THE  LONDON  CITY  AND 
MIDLAND  BANK  Limited 

will  supply  all  information  respecting 

NATIONAL 
WAR  BONDS 

and  invites  investors  to  make  their 
applications  for  the  same  at  any  of  its 
offices  throughout  the  United  Kingdom 


HEAD    OFFICE:    5,  THREADNEEDLE     STREET, 
LONDON,    E.C.2. 


30 


^bc  3iwe8toi6'  IReview. 


January  12,  1918. 


tax  free.  There  then  remains  ;^i  16,550,  or  ;^9,ooo 
more,  to  be  carried  forward.  Loans  and  deposits  have 
increased  ;;£,"4,ooo,ooo  to  ^"23,343,000,  while  bills  re- 
discounted  are  ;^"325,ooo  lower  at  _£,"4, 450,000.  Cash 
remains  about  the  same  at  ;{,i, 043,000,  while  invest- 
ments have  increased  ^'680,000  to  j£,2,6s5,ooo,  and  bills 
discounted  /,'3, 500,000  to  ;^'25, 868,000.  The  balancc- 
.sheet  totals  at  ;^'30,o87,ooo,  an  increase  of  ^'3,800,000. 
Considering  the  expansion  in  business,  profits  have 
evidently  not  been  so  easily  gathered  in  as  we  might 
have  expected  under  the  circumstances. 

A  "Peace"  Dutch  Auction. 

When  "  Labour  "  first  began  to  clamour  for  a  state- 
ment of  the  Allied  "  peace  terms  "  we  objected.  The 
time  did  not  seem  to  have  arrived  when  any  good  pur- 
pose could  be  served  by  reciting  once  again  what  we 
were  at  war  for.  The  ideal  animating  the  statesmen  of 
the  Great  Powers  was  sufficiently  made  known  at  the 
outset  of  the  war,  and,  as  the  Prime  Minister  reminded 
his  audience  last  Saturday,  in  the  middle  of  January  a 
year  ago,  the  Allied  position  was  once  more  set  forth 
in  unmistalcable  terms.  We  were  at  war  to  liberate 
mankind,  for  the  democracies  of  the  world,  and  for  no 
.selfish  purpose  whatsoever.  The  Germans  understood 
our  position  and  aims  fully  as  well  as  we  did,  and  all 
their  efforts  have  been  more  and  more  bent  towards 
checkmating  us,  raising  barriers  between  us  and  our 
goal,  inciting  distrust  amongst  the  Powers,  and,  above 
all,  their  masters  exerted  their  demoniac  ingenuity  in 
efforts  to  beguile  some  Power  into  making  a  separate 
peace  so  as  to  give  them  a  chance  to  escape  from  their 
doom.  Why,  then,  did  the  Prime  Minister  meet 
"Labour  "  and  proceed  to  make  one  more  statement  of 
our  aims?  Apparently  because  misled  "Labour" 
clamoured  for  it.  That  is  to  say,  without  knowing  it, 
our  working  classes  are  agitating  for  peace  almost  as 
perilously  and  unceasingly  as  the  Leninites  in  Russia. 
Having  agreed  to  l>end  to  the  behests  of  the  Labour 
leaders,  Mr.  George  prudently  consulted  with  Mr. 
Asquith  and  Viscount  Grey  before  framing  his  new 
programme,  and  would  have  consulted  with  the  Irish 
leaders  had  they  been  at  hand.  Was  the  result  of  this 
careful  preparation  all  that  it  should  have  been?  In 
chorus  the  newspapers  shout  "Yes,"  "an  admirable 
statement,"  an  "epoch-making  deliverance,"  "the 
greatest  speech  the  Prime  Minister  has  ever  made." 
They  all  assure  us  that  it  will  have  an  immense  in- 
fluence in  shaping  the  course  of  the  Allies,  "  and  sus- 
tain them  in  entering  uoon  negotiations  with  the  enemy 
when  the  time  comes,"  with  much  more  to  a  like  pur-' 
p>ose.  Thev  hastened  also  to  assure  us  that  President 
Wilson  cordially  aporovcd.  Well,  let  us  look  at  the 
terms  set  forth  in  this  momentous  deliverance.  We 
take  the  summary  of  them  as  given  in  the  Times  of  the 
7th  instant : — 

WHAT  WE  ARE  NOT  FIGHTING  FOR. 

We  are  not  fighting  a  war  of  aggression  against  the  German 
people. 

The  destruction  or  disruption  ot  Germany  or  the  German 
people  has  never  been  a  war  aim  with  us  from  the  first  day  of 
this  war  to  this  day.  Nor  are  we  fighting  to  destroy  Austria- 
Hungary  or  to  deprive  Turkey  of  its  cap'tal,  or  of  the  rich  and 
renowned  lands  of  Asia  Minor  and  Thrace,  which  are  pre- 
dominantly Turkish  in  race. 

WHAT  WE  ARE   FIGHTING   FOR. 

1. — EtJROPE. — Complete  restoration,  political,  territorial,  and 
economic,  of  the  independence  of  Belgium  and  such  reparation 
as  can  be  made  for  the  devastation  of  its  towns  and  provinces. 

Restoration  of  Serbia,  Montenegro,  and  the  occupied  parts  of 
France,  Italy,  and  Rumania. 

Complete  withdrawal  of  the  alien  armies  and  reparation  for 
injustice  done  a  fund.imental  condition  of  permanent  peace. 

With  the  French  democracy  to  the  death  in  their  demand  for 
a  recons'deration  of  the  ereat  wrong  cf  1871,  when,  without 
regard  to  the  wishes  of  the  population,  two  French  provinces 
were  torn  from  the  side  of  France  and  incorporated  in  the 
German   Emoire. 

An  independent  Poland,  comprising  all  those  genuinely 
Polish  elements  who  desire  to  form  part  of  it,  an  urgent  neces- 
sity for  the  stability  of  Western  Europe. 

Genuine  sel'-(;overnment  on  true  democratic  principles  to 
those   \u<'t'o-Hunc'>ri   n  nationalities  who  have  long  desired  it. 

Satisfaction  of  the  legitimate  claims  of  the  Italians  for  union 
with  those  of  their  own   rwe  .-nd  tongue. 

Justice  to  men  of  Rumanian  bicod  and  speech  in  their  legiti- 
mate aspirations. 


II. — Asia  and  Afkica. — Constantinople  to  remain  Turkish 
capital. 

Passage  between  the  Mediterranean  and  the  Black  Sea  to  be 
internationalised   and  neutralised. 

Arabia,  Armenia,  Mesopotamia,  Syria,  and  Palestine  entitled 
to  recognition  of  their  separate  national  conditions. 

German  Colonies  held  at  the  disposal  of  a  Conference  whose 
decision  must  have  primary  regard  to  the  wishes  and  interests 
of  the  native  inhabitants  of  such  Colonies. 

III.  — General. — Reparation  for  injuries  done  in  violation  of 
international   law,  especially   as  regards  our   seamen. 

The  establishment  by  some  international  organisation  of  an 
alternative  to  war  as  a  means  of  settling  international  disputes. 

IV. — Kesume. — Sanctity     of     treaties     to     be  re-established  ; 

A  territorial  settlement  to  be  secured  based  on  the  right  of 
self-determination  or   the  consent  of   the   governed; 

The  creation  of  some  international  organisation  to  limit  the 
burden  of  armaments  and  diminish  the   probability  of  war. 

When  we  first  read  the  speech  in  the  Sunday  papers 
of  the  6th  instant,  we  marvelled  at  the  indifterence 
shown  by  the  speaker  to  any  historical  sense  or  con- 
sideration of  past  history,  and  also  because  his  recital 
did  not  ring  true  in  relation  to  the  democracies  of 
those  empires  over  whose  crimes  he  may  be  said  to 
have  thrown  a  mantle  of  oblivion.  The  speech  rang 
hollow  to  us,  and  startled  us  in  many  ways  by  its 
insouciance.  It  was  like  an  auctioneer's  cheapening 
of  his  wares ;  not  necessarily  a  fal.se  presentment,  but  a 
m.inimising  one  that  did  not  strictly  accord  either  with 
the  facts  or  with  popular  ideals  and  aspirations. 
Startling,  too,  was  it  in  its  indifference  to  the  wishes 
of  South  Africa,  our  Australian  colonies,  and  P'rance 
in  regard  to  Germany's  cruelly  governed  colonies. 

Look  at  some  of  the  sketch  in  detail.  There  is,  to 
begin  with,  to  be  no  destruction  or  disruption  of 
Germany  or  the  German  people.  Such  a  thing  has 
never  been  thought  of.  And,  it  would  seem,  we  are 
not  fighting  to  destroy  Austria-Hungary,  or  to  deprive 
Turkey  of  its  "  capital,"  or  of  the  "  rich  and  renowned 
lands  of  Asia  Minor  and  Thrace,  which  are  pre- 
dominantly Turkish  in  race."  Oh,  dear  no,  we  are 
only  going  to  give  all  the  peoples  there  "  liberty  !  " 
How  the  Germans  must  chuckle  when  they  remember 
the  times  we  have  told  them  that  an  absolute  essential 
to  the  very  beginnings  of  peace  is  surrender  of  Alsace 
and  Lorraine  to  the  French  Republic,  from  which  these 
provinces  were  brutally  torn  away,  and  have  been  kept 
in  slavery  ever  since  the  spoliation  of  1871.  And  how 
can  Germany  remain  intact,  and  make  reparation  to 
Belgium  and  Northern  France  for  the  crimes  and 
ravages  committed  there?  How  is  she  to  make  resti- 
tution and  pay  damages  except  by  her  own  liberation 
from  Prussia,  and  by  surrendering  all  the  lands  on 
the  left  bank  of  the  Rhine,  now  in  Prussia's  grasp? 
As  part  of  the  compensation  due,  and  for  the  security 
of  the  world's  peace,  must  not  Prussia  also  surrender 
her  overlordship  of  mineral  lands  on  the  right  bank 
wherever  they  are  necessary  in  order  to  repay  Belgium 
and  to  protect  the  Netherlands  against  Prussian  greed 
in  time  to  come?  What  is  the  use,  then,  of  declaring 
that  no  "destruction  or  disruption"  of  Germany  was, 
ever  intended?  And  when  the  Prime  Minister  went 
on  to  proclaim  the  Allied  aim  to  be  a  "  free  Poland," 
did  he  not  give  himself  the  lie?  Will  Prussia,  backed 
by  all  the  Pan-Germans,  give  up  Alsace-Lorraine  or 
Poland,  and  consider  that  the  German  empire  remains 
intact?  The  idea  is  inconceivably  absurd.  Why,  then, 
.should  the  Prime  Minister  have  gone  out  of  his  way 
to  proclaim  aims  of  this  description  so  absolutely  con- 
tradictory? Was  it  to  soothe  his  hearers  who  are 
ignorant  and  craving  for  peace? 

As  for  Austria  and  Hungary,  Mr.  George's  demand 
for  self-government  "on  true  democratic  principles" 
for  the  nationalities — some  dozen  or  more  of  them  em- 
braced within  the  Habsburg  tyranny  itself — shows  with 
equal  vividness  how  hollow  was  the  profession  of  a 
desire  to  leave  that  empire  standing.  It  was  more,  it 
implied  a  betrayal  of  the  democratic  ideal  and  an  ignor- 
ance of  Austria's  history  calculated  to  fill  the  mind  with 
terror  lest  such  incompetence  should  be  about  to  betray 
us  into  a  ruinous  peace. 

We  do  not  object  so' much  to  the  Prime  Minister's 
declaration  of  the  purposes  in  detail.  It  is  the  cloak 
of  pretence,  not  to  say  hypocrisy,  under  which  they  are 


January   12,  1918. 


Zbc  Jnvestors'  TRePiew. 


31 


I 


' '  formulated. ' '  What  oould  be  more  repellent,  for  ex- 
ampde,  to  the  minds  of  thoughtful  citizens  than  the 
jumbled  up  asseverations  about  Turkey  ?  The  Turk  as 
a  marauder  in  occupation  has  been  the  curse  of  Europe 
for  upwards  of  five  hundred  years,  and  the  curse  of  Asia 
Minor  for,  one  might  say,  almost  seven  hundred  years. 
And  again  and  again  Western  Powers,  Great  Britain 
especially,  have  assumed  moral  obligations  towards  the 
misgoverned  and  often  massacred  subject  pcuDulations 
in  all  parts  of  the  Turkish  Empire.  It  is  mainly  because 
we  did  not  fulfil  the  more  solemn  and  later  of  these 
obligations  that  we  are  striving  with  the  Turk  and  his 
taskmaster  in  Palestine  and  Mesopotamia  to-day.  We 
failed  to  do  our  duty,  to  keep  our  promises,  and  are 
now  being  punished  for  our  selfish  indifference.  Can 
any  man  pretending  to  statesmanship  really  think  that 
now  we  are  forced  to  take  the  right,  the  manly  and 
honourable  course  we  are  going  to  submit  to  the  per- 
sistence of  this  abominable  plague  and  blight  of  a  nomad 
liorde  left  free  to  rob  and  massacre  as  of  yore  ?  What 
else  is  this  so-called  Turkish  empire?  Besides,  is  it  not 
true  that  before  the  Russian  Empire  foundered  cur  then 
Government  had  agreed  to  allow  Constantinople  to  fall 
to  Russia?  And  is  the  change  now  made  simply  a 
clutch  made  by  a  popular  orator  as  he  boom-booms  along 
at  whatever  temporary  expedient  he  sees  to  hide  the 
fact  that,  Russia  having  failed  us,  no  claim  to 
Constantinople  on  her  part  can  be  admitted  ? 
Greece  wants  the  city  perhaps,  Bulgaria  will  cer- 
tainly claim  it,  and  the  Allies  have  not  made 
lip  their  minds.  Would  it  not  have  been  better  to 
hold  our  tongue  ?  We  have  no  special  hostility  to 
the  Turk  as  a  human  being  any  more  than  to  the  Ger- 
man. It  is  as  a  master  over  other  human  beings  that 
Tie  is  objectionable,  just  as  the  Prussian  is ;  both  are  as 
much  hindrances  to  true  civilisation  as  the  Red  Indian 
was  in  North  America  until  he  was  subdued  and  tamed. 
There  is  no  encouragement  for  the  self-denying  citizen 
to  fight  for  a  programme  like  this — none  whatever ;  and 
if  we  are  to  lay  down  the  lines  of  our  parleyings  with 
the  enemy  in  this  slipslop  fashion,  which  would  inevit- 
ably lead  to  our  leaving  the  adversary  with  his  plunder, 
or  most  of  it — ready  to  accept,  only  taking  illusory 
security  for  payment  of  the  damages  claimed,  well,  the 
sooner  we  stop  wasting  what  remains  of  our  substance 
In  this  war  the  abetter.  Let  us  call  home  our  troops, 
cease  to  talk  frothy  heroics,  and  accept  our  defeat  with 
all  its  consequences.  "  Ah,  but  the  Prime  Minister  told 
the  working  men,  whose  support  he  was  bidding  for, 
that  the  Turkish  Empire  is  to  be  reformed,  and  even 
■*  the  home  of  the  Turk  '  in  Asia  Minor  endowed  with 
regional  self-government."  Just  so;  and  did  not  Lord 
Beaconslield  grandiloquently  roll  out  the  same  kind  of 
promises  when  he  came  home  with  his  "  peace  with 
honour  "  from  Berlin  in  1879?  You  know  what  ensued, 
■do  you  not?  Have  you  any  reasons  to  suppose  that 
the  sequelae  to  Mr.  George's  promises  would  be  differ- 
ent? If  so,  please  state  them.  The  only  difference  we 
can  see  is  that  next  time  the  Turk  and  his  Kurds  may 
have  neither  Armenian,  nor  Greek,  nor  Jew  left  to 
murder,  because  under  Teutonic  direction  they  will  have 
been  all  .ready  exterminated  throughout  "  the  Turkish 
Empire."  And  we  are  asked  to  hail  this  kind  of  rhodo- 
montade  as  "  statesmanship."  Why  could  not  Labour 
have  been  told  straight  out  that  we,  the  Allies,  were  not 
fighting  for  mere  territory  for  ourselves,  or  to  shore  up 
any  empire,  but  in  order  that  the  oppressed  might  be 
free? 

"  Oh,  but  it  was  necessary  to  enlighten  these  Ger- 
mans as  to  what  we  mean  to  do,  and  to  show  them  how 
Ijenevolent  and  soft-hearted  we  were ;  that  we  really 
were  not  the  determined  absorbers  of  everything  we 
could  lay  hands  on  and  coveted,  as  they  had  been  told 
and  as  they  believed,  because  themselves  of  that  build." 
That  is,  in  substance,  the  excuse  always  pushed  for- 
ward in  justification  of  a  "  complete  statement  of  our 
•war  aims"  by  the  Labour  Party  and  the  pacifisms. 
Well,  what  have  they  got  by  being  obeyed?  What  has 
Germany  done?  Taken  our  terms  on' the  square  and 
sought  to  move  her  rulers  towards  negotiations  on  these 
lines?     Nothing  of  the  sort.     Their  controlled   Press, 


which  is  the  only  Press  allowed  to  speak  in  Germany, 
has  interpreted  the  move  of  our  Government  exactly  as 
we  feared  it  would.  "  Great  Britain  is  climbing  down," 
they  tell  the  German  pyeople.  "  Her  statement  of  aims 
is  not  nearly  so  arrogant  as  that  of  a  year  ago.  The 
Allies  are  weakening.  If  we  hold  on  we  shall  soon  have 
them  oni  their  knees  before  us,  ready  to  accept  any  terms 
we  choose  to  offer  to  them,"  and  the  still  wind-inflated 
mind  of  the  Prussian  Teuton  swells  out  with  the  old 
vanity,  and  his  throat  growls  out  the  old  greeds,  "  world 
dominion."  He  already  sees  Germany  master  of 
Russia,  and  in  a  position  to  control  the  coveted  road  to 
the  East.  Constantinople  is  to  be  his  and  his  only.  Is 
this  likely  to  end  the  war?  If  we  flinch,  yes;  if  not, 
then  it  may  be  prolonged.  Either  way,  we  get  no  help 
from  this  "epoch-making  "  eloquence. 

Perhaps,  however,  it  may  not  matter  much  ;  we  must 
console  ourselves  with  that.  As  we  have  again  and 
again  said — we  are  in  the  war  and  must  fight  to  the 
end,  or  go  down,  down  to  perdition.  W^e  cannot  do 
otherwise.  Were  we  to  stop  now,  we  and  the  whole  of 
our  Allies  would  go  instantly  insolvent.  Germany  and 
Austria,  who  are  already  patently  insolvent,  would 
drag  us  all  down  into  the  abyss  with  them,  and  then  it 
would  be  touch  and  go — hardly  even  that — whether  our 
civilisation  did  not  also  disappear  for  good,  even  as 
the  ancient  civilisation  of  Egypt  and  Syria  and  Greece 
and  Rome  were  submerged  ixi  savagery.  Is  America  in 
the  war  for  a  finale  hke  that?  We  think  not.  America 
may  save  us,  and  it  begins  to  look  as  if  we  meant  to 
let  her. 

As  is  appropriate  in  sermons,  the  Prime  Minister's 
lecture  to  the  Labour  delegates  wound  up  with  one 
more  nice  piece  of  moral  sentiment.  "  Whatever  state- 
ment is  made,"  he  said,  "  will  be  suitable  only  to  the 
circumstances  under  which  it  is  made,  and,  as  those 
circumstances  change,  changes  in  the  settlement  will 
be  called  for."  That  is  true  enough,  and  should  have 
been  a  restraining  thought  to  prevent  his  speech. 
"  But,"  he  went  on,  finally,  "  we  are  fighting  for  a  just 
and  lasting  peace — and  we  believe  that  before  per- 
manent peace  can  be  hoped  for,  three  conditions  must 
be  fulfilled.  First,  the  sanctity  of  treaties  must  be  re- 
established ;  secondly,  a  territorial  settlement  must  be 
secured  based  on  the  right  of  self-determination  or  the 
consent  of  the  governed  ;  and,  lastly,  we  must  seek  by 
the  creation  of  some  international  organisation  to  limit 
the  burden  of  armaments  and  diminish  the  probability 
of  war."  An  excellent  programme,  but  how  is  the  ful- 
filment of  it  to  be  begun  until  first  Prussian  militarism 
is  destroyed  ?  Could  any  Ministry  in  this  country  have 
the  hardihood  seriously  to  propose  to  the  nation  that  it 
should  accept  the  signature  of  Prussia  to  any  treaty  of 
peace  whatsoever?  If  we  destroy  Prussian  mihtarism, 
then  the  three  conditions  set  forth  by  Mr.  Lloyd  George 
might  perhaps  be  comparatively  easy  of  attainment, 
but,  until  then,  would  it  not  be  better  to  persevere  with 
the  fighting  and  talk  less?  As  for  the  limitation  of 
armaments  ;  after  the  war  our  debts  will  do  that  for 
us,  whether  we  like  it  or  not.  If  Prussia  should  then 
try  the  old  game  all  by  herself,  the  extinction  of  her 
power,  and  probably  of  the  German  race,  will  be  com- 
plete and  final. 


Capital   Conscription    and    the 
Development  of  Our  Land. 

It  is  to  be  hoped  that  Mr.  Bonar  Law  is  devoting  his 
thoughts  earnestly  to  the  problem  hinted  by  him  in  his 
communings  with  representatives  of  Labour.  It  may 
not  be  difficult  to  talk  about  the  conscription  of  wealth, 
but  how  to  do  it  without  impoverishing  the  nation  is 
m.uch  less  easy.  Capital,  be  it  noted,  is  already  drawn 
upon  pretty  severely  to  swell  out  the  income  of  the  Ex- 
chequer. In  the  first  nine  months  alone  of  the  current 
fiscal  year  the  Death  Duties  have  yielded  ;^23, 193,000, 
all  of  which  represents  a  draft  upon  capital,  a  levy  on 
realised  wealth.  And  is  not  the  excess  profits  tax,  in- 
cluding the  munitions  levy,  which  has  brought  in 
;^i48,945,ooo,  in  great  part,  also,  at  least  an  indirect 
draft  upon  capital?  If  it  comes  to  that,  what  tax  is 
not?     Whatever  cripples,  or  interferes  with,  the  accu- 


32 


XTbe  investors'  "Review. 


January   12,   1918. 


mulation  of  wealth  is  a  tax  on  capital.  The  money 
sucked  away  from  the  proceeds  of  labour  reduces  the 
balance  available  for  expanding  the  output  of  industry, 
deprives  the  people  of  means  that  might  be  utilised-  in 
extending  and  enlarging  the  supplies  of  commodities 
which  are  the  sources  of  all  wealth.  By  reason  of  the 
weight  of  taxation  a  man,  or  a  joint  stock  company, 
may  be  deprived  of  the  means  wherewith  to  renew  the 
machinery  worn  out,  or  superseded  by  use  or  the  pro- 
gress of  invention,  and  great  works  beneficial  to  the 
country  may  prove  impossible  of  execution  because  the 
investors  relied  on  to  furnish  the  means  are  not  in  a 
position  to  subscribe  the  necessary  funds.  Taxes  have 
weakened  or  paralysed  their  powers  of  accumulation. 

"  After-the-war  "  finance  is  going  to  tax  the  wits  of 
the  ablest  financiers  alive  to  surmount  the  difficulties 
placed  by  our  war  debt  in  the  path  of  civilisation  and 
progress,  and  if  the  wrong  course  is  chosen,  we  may  be 
ruined  before  we  realise  our  position.  On  every  liand 
we  see  men,  and  classes  of  men,  busy  with  projects  for 
"capturing  German  trade,"  for  spreading  our  manu- 
factures over  new  markets,  &c.  ;  and,  beyond  question, 
the  scope  for  the  energies  of  every  one  of  the  Allies  will 
be  almost  infinite  after  the  war.  All  the  lands  and  races 
tyrannised  by  the  Teuton,  the  races  .set  free  in  the  two 
malignant  empires,  the  delivered  Balkan  countries,  a 
fieed  Russia  sagely  ruled,  Armenia,  Syria,  and  the 
other  great  blighted  territories  of  the  Turk  in  Asia 
Minor,  together  w  ith  the  measureless  regions  of  Africa, 
will  all  lie  open  to  us  for  enterprise,  for  the  expendi- 
ture of  capital  and  well-directed  energy  in  the  restora- 
tion of  life  and  life's  well-being  to  their  forlorn  inhabi- 
tants. It  miu.st  therefore  be  our  utmo.st  care  to  see 
that  nothing  is  done  to  cripple  our  power  to  take  our 
full  share  in  the  evolution  and  building  up  of  this  new 
and  nobler  life  once  the  way  is  opened  to  us  by  the 
defeat  of  the  foul-fighting  enemy.  The  Germans,  too, 
are  busy  with  dreams  and  schemes  framed  on  the  old 
lines  of  absolute  selfishness,  for  they  do  not  yet  seem 
to  have  'begun  to  under.stand  how  completely  the  war 
has  ruined  their  Jonah's  gourd-like  trade — or  how 
the  enforcement  of  "  restoration  and  compensa- 
tion "  is  going  to  tie  them  down  to  generations-long 
servitude.  Tlie  sea-power  of  the  Allies  must  circum- 
scribe their  energies  until  they  have  made  full  resti- 
tution and  atonement. 

That  is  an  essential  condition  of  the  peace  to  come, 
and  therein  lies  our  advantage.  The  open  road  to  us 
all  lays  upon  our  guides  in  the  peace  days,  coming  soon 
now,  probably,  the  duty  of  seeing  to  it  that  nothing  in 
the  fiscal  expedients  adopted  to  enable  us  to  meet  our 
own  obligations  is  to  be  permitted,  calculated  to  fetter 
us  so  that  we  shall  be  unable  to  take  full  advantage  of 
our  victory,  or  to  hinder  us  in  giving  helpful  assistance 
to  our  Allies,  so  that  they  also  may  reap  the  full  reward 
of  their  steadfast  endurance  and  loyalty  to  the  high 
ideals  we  have  all  set  before  us.  As  yet',  we  confess  it 
with  sorrow,  we  see  little  sign  of  perception  of  the 
formidable  nature  of  the  problem  we  have  to  solve.  All 
the  plans  flared  in  the  public  eye  are  smudged  with 
selfishness,  the  plans  of  the  representatives  of  Labour  as 
much  as  those  of  the  Protectionists,  of  the  "  Leagues  " 
of  every  livery.  Some,  like  this  journal,  speak  of  a 
"  Brotherhood  or  League  of  Nations,"  and  that  must 
come  if  civilisation  is  not  to  be  submerged  Leneath  the 
lava  flood  of  ruin  ;  but  the  references  to  its  aims  and 
limitations  are  of  the  vaguest,  and  before  it  can  come 
we  must  attain  to  a  "brotherhood  of  men,"  each  in 
our  own  land.  Among  the  doctrines  formulated  by  the 
conference  of  working  men  held  before  Christmas,  a 
meeting  at  which  there  was  much  sound  and  fury  that 
put  wisdom  to  rout,  was  a  fine  academically  flavoured 
resolution  in  favour  of  a  compulsory  court  of  arbitra- 
tion for  the  settlement  of  disputes  between  nations  ;  but 
when  it  came  to  compulsory  courts  at  home  to  determine 
conflicts  between  workmen  and  their  wnge-payers,  the 
delegates  would  have  none  of  it.  What  was  deemed 
excellent  sauce  for  the  foreign  goose  was  stigmatised 
as  poison  for  the  domestic  gander.  Gentlemen,  this 
will  not  do  at  all.  If  a  finer  spirit  of  mutual  helpful- 
ness and  comradeship  does  not  come  to  prevail  at  home. 


then   good-bye  to  dreams  of  international  concord  and 
mutual  helpfulness  between  nations. 

Sometimes  people  write  to  us  to  complain  of  our 
"  Socialism."  It  is  especially  so  with  reference  to 
what  we  urge  about  the  treatment  of  our  soil.  These 
remonstrants  mistake  us  altogether.  This  journal  does 
not  advocate  any  "  ist  "  or  "  ism  "  whatsoever.  It  is 
co-operation  and  co-partnership  of  all  those  directly 
connected  with  the  land  that  we  plead  for,  not  the  de- 
spoiling of  one  class  for  the  benefit  of  another.  All 
that  is  urged  is  that  if  the  privileged  class,  the  land- 
lords, do  not  now  as  a  class  recognise  either  their  duty 
or  their  opportiinity,  do  not  step  down  from  their 
fenced-off  exclusiveness  and  become  directing  partners 
in  the  vitally  essential  work  of  increasing  our  domestic 
food  production  that  is  essential  to  our  independent 
existence  as  a  free  people  and  to  our  position  after  the 
war  as  one  of  the  most  debt-bound  peoples  on  earth, 
and  that  failure  to  rise  to  the  height  of  the  duty  prob- 
ably  involves   revolution. 

It  is  not  by  seizing  or  "  conscripting  "  capital  that 
we  are  going  to  deliver  ourselves  from  this  war  debt 
of  ours,  but  by  increasing  our  available  revenues,  and 
the  one  supreme  means  by  which  we  can  bring  about 
this  increase  is  a  better  cultivation  of  the  land.  Prob- 
ably were  all  classes  to  unite  in  bringing  about  a 
thorough  and  scientific  utilisation  of  all  our  available 
soil  the  agriculture  and  pastoral  production  of  the 
United  Kingdom  could  be  quadrupled.  It  assuredly 
could  be  augmented  threefold,  and  it  will  have  to,  be 
at  least  immediately  doubled  if  we  are  to  escape  not 
only  the  disaster  of  insolvency,  but  of  starvation  in  the 
near  future,  for  the  pinch  is  almost  certain  to  be  more 
severe  after  the  war  than  it  is  now.  Now  if  the  land- 
owners hang  back  or  continue  to  follow  their  old  usages, 
under  which  agriculture  was  discouraged,  and  the 
labour  on  the  land  kept  in  a  state  of  grovelling  serfage, 
they  will  undoubtedly  be  swept  aside  by  the  mere 
pressure  of  the  nation's  urgent  necessities.  Already 
the  method  of  doing  so  is  being  discussed.  What  do 
our  soldiers  talk  about  in  the  trenches?  Do  they  not 
want  to  know  how  the  landlords  came  by  their  privi- 
leges and  position  ?  Who  gave  and  had  a  right  to  give 
them  this  land  which  they  hold  in  their  hands,  exact 
rent  for  as  if  their  privileges  came  direct  from  heaven, 
and  usually  refuse  to  allow  to  be  tilled  as  it  should, 
regardless  of  what  this  refusal  means  to  the  nation? 
How  many  of  them  spend  their  money  in  improve- 
ments? and  so  on. 

Now  we  should  be  sorry  to  see  this  landlord  class 
disappear.  It  has  played  many  a  time  a  noble  part  in 
the  history  of  the  British  Empire.  TJie  sons  of  the 
aristocracy  and  of  the  rich  of  all  degrees  are  to-day 
dying  at  the  front  side  by  side  with  the  poorest  hind 
taken  from  the  land  or  the  city  slums.  Some  of  the 
finest  qualities  of  the  race  are  being  displaj'ed  by  these 
men,  by  all  of  them  both  noble  and  mean.  Why  should 
those  at  the  top  refuse  to  come  down  and  take  their 
place  amongst  those  who  actually  cultivate  our  soil  ?  We 
wish  all  connected  with  the  land  to  be  partners  in  effect- 
ing an  increase  in  its  yield,  and  in  sharing  the  benefits  of 
that  increase,  and  that  the  surplus  should  become  an 
ever-growing  fund  for  the  use  of  the  Exchequer. 

Agricultural  production  is  at  present  being  stimu- 
lated by  bribes  and  doles.  How  much  it  is  going  to 
cost  the  Treasury  to  expand  the  yield  of  cereals  or 
root  crops,  what  the  doles  granted  will  involve  to  the 
nation  in  the  way  of  ultimate  loss,  we  cannot  say,  but 
the  expedients  now  employed  can  be  but  temporary. 
.'Vgriculture  must  not  remain  a  direct  burden  on  the  Ex- 
chequer after  the  war.  On  the  contrary,  it  must  be- 
come the  principal  source  of  the  augmented  revenue  on 
which  we  shall  have  to  rely  to  pay  our  debts.  And  by 
paying  our  debts  without  recourse  to  further  shearings 
off  the  nation's  capital  we  shall  create  and  liberate  ever 
fresh  capital  to  help  our  industrial  expansion  in  all 
directions.  Is  not  that  an  ideal  worth  striving  after? 
Our  existence  as  an  empire  depends  upon  the  whole- 
heartedness  of  our  surrender  and  devotion  to  manifest 
duty. 


January  12,  1918. 


^be  investors'  IRevlew.ii 


33 


London  Gas  Bills. 

Three  of  the  London  g^as  companies  have  now  de- 
posited Bills  for  introduction  into  Parliament  next  ses- 
sion.    The  Gas   Light   and   Coke   Co. 's    Bill   seeks   to 
obtain     relief    from     the     present     statutory     dividend 
restrictions  by  a  proposal  to  fix  the  standard  price  for 
gas  at  2s.  6d.  per  1,000  cubic  feet  and  to  pay  on  the 
ordinary  stock  the  pre-war  dividend,  less  6d.  in  respect 
of  each  id.  by  which  the  price  of  gas  exceeds  2S.   6d. 
At   the   present   time   the   standard   dividend   is   4   per 
cent.,  the  standard  price  of  gas  3s.  2d.,  and  for  each 
increase  or  decrease  of  id.  on  the  standard  price  the 
authorised  rato  of  dividend   rises  or  falls   2s.  8d.    per 
cent,  per  annum.     As  the  price  of  gas  is  now  3s.  4d., 
or  2d.  above  the  standard  rate,   the  company  is  onlv 
able   to  pay   a   half-yearly   dividend   of   £^    '17s.    4d.', 
equivalent  to  £t,  14s.  8d.  per  annum.      Should  the  nevv 
proposal  be  adopted,   the  ordinary  stockholders  would 
not   appear  to  come   off  so  badly.     The   last   pre-war 
half-yearly  authorised  dividend  was  equivalent  to  ;^5 
IS.  4d.  per  cent,  per  annum,  and  even  if  the  price  of  gas 
was   increased   to   4s.,    the   authorised  dividend   would 
under  the  new  proposal  come  out  at  £^  12s.   4d.  per 
cent,  per  annum,  while  if  the  price  of  gas  was  3s.  4d., 
as   at   present,    the   suggested   scale   would   permit   an 
authorised  dividend  of  £^  ifis.  .-id.  per  cent,  per  annum. 
On  the  basis  of  the  former  distribution.  Gas  Light  and 
Coke  Co.  ordinary  stock  would  at  the  present  price  cf 
about  69  yield  £6  15s.  per  annum,  and  on  that  of  the 
latter,  £-j  2s.  per  cent.      In  the  case  of  the  3I  per  cent, 
maximum  stock  the  new  sliding  scale  provides  for  the 
payment  of  8d.  less  01  the  £:;,  los.  dividend  in  respect 
of  each  id.  by  which  the  price  of  gas  exceeds  3s.  iid. 
The  company  state  in  the  preamble  that  they  apprehend 
they   may   be   compelled   to   increase    the   price    to    an 
amount  exceeding  that  sum,  but  it  is  to  be  hoped  both 
from  the  point  of  view  of  the  company  and  the  con- 
sumer that  recourse  will  not  have  to  be  made  to  an  in- 
crease of  this  magnitude. 

For  the  determination  of  the  rate  of  dividend  payable 
upon  the  South  Metropolitan  Gas  stock  for  the 'half- 
year  ending  June  30,  1918,  clause  13  of  that  companv's 
Bill  proposes  that  the  standard  price  for  gas  shall  be 
taken  to  be  3s.  jd.  instead  of  3s.  id.  per  1,000  cubic 
feet.  The  price  of  gas  has  now  been  raised  to  3s.  7d., 
so  that  under  the  new  proposals  the  authorised  dividend 
will,  while  the  company's  gas  remains  at  its  present 
price,  be  restricted  to  the  rate  of  4  per  cent,  per 
annum,  the  rate  of  the  distribution  to  be  paid  in  respect 
of  the  half-year  ended  December  31  last,  when  the  price 
charged  for  gas  was  3s.  id.,  the  standard  price  3s.  id., 
and  the  standard  dividend  4  per  cent,  per  annum. 
Allowing  for  accrued  dividend,  the  return  on  the  pre- 
sent price  of  alwut  76  is  ;^5  7s.  6d.  per  cent.  In  both 
this  and  the  Gas  Light  and  Coke  Co.'s  Bills  it  is  pro- 
posed that  the  new  arrangement  continues  for  two 
years  after  the  termination  of  the  war,  subject  to  ex- 
tension by  the  Board  of  Trade. 

The  Commercial  Gas  Company  also  proposes,  as  a 
temporary  measure,  to  alter  the  sliding  scale  applicable 
to  dividends,  aiming  at  securing  the  payment  of  divi- 
dends on  the  same  basis  as  that  on  which  they  were 
paid  for  the  half-year  ended  June  30,  1914,  when  the  4 
per  cent,  stock  and  the  3^  per  cent,  stock  received 
;^5  9s.  4d.  and  ;^5  6s.  8d.*'  respectively.  In  the  half- 
year  ended  December  3 1  last  the  price  of  gas  was  3s.  2d. 
The  standard  price  is  3s.  id.,  and  as  the  dividends  on 
the  4  and  3^  per  cent,  stock  are  varied  2s.  8d.  and  3s.  4d. 
per  cent,  resjjectively,  in  accordance  with  each  change 
of  a  penny  in  the  price  of  gas,  the  recently  announced 
dividends  are  equivalent  to  ;^4  2s.  8d.  and  £^  13s.  4d. 
respectively.  It  seems  too  much  to  expect  a  restoration 
to  the  pre-war  rate,  but  a  sub.stantial  measure  of  relief 
seems  not  unlikely.  On  the  basis  of  the  present  rates  of 
dividend  the  4  per  cent,  stock  yields  at  72,  allowing  for 
accrued  dividend,  ;^5  17s.  per  cent.,  and  the  3J  per 
cent,  stock  £^  14s.  6d.  per  cent. 

Each  of  the  three  companies  is  seeking  powers  to 
issue  further  capital.  The  Gas  Light  and  Coke  Co. 
proposes  to  raise  ;^750,ooo  by  the  issue  of  redeemable 
debentures,   or   alternatively  by    mortgage  or    by    the 


creation  of  debentures,  the  authorised  and  unissued 
debenture  stock  being  unsuitable  for  issuing  under  exist- 
ing conditions.  In  the  South  Metropohtan  Co.'s  Bill 
it  is  proposed  to  raise  ^> 50,000  additional  capital, 
either  in  the  form  of  South  Metropolitan  Gas  stock  or 
preference  stock.  Upon  this  capital  further  borrowing 
powers  are  sought  to  the  amount  of  ;£25o,ooo.  In 
addition  to  this,  powers  are  asked  to  raise  from  time  to 
time  any  sums  not  exceeding  ;^5oo,ooo  by  the  issue  of 
redeemable  preference  or  debenture  stock,  such  redeem- 
able stock  to  have  a  currency  of  10  years.  In  the  case 
of  the  Commercial  Gas  Co.,  power  is  sought  to  raise 
£^105,000  by  the  creation  of  preference  stock,  and  also 
to  issue  the  whole  of  the  unissued  capital  stock, 
amounting  to  ;^I49,298,  as  preference  stock.  The 
company  also  seeks  power  to  raise  money  temporarilv 
for  working  capital  by  the  issue  of  redeemable  prefer- 
ence and  debenture  stock. 


British  Columbia  Electric  Railway. 

Last  year,  it  may  be  recalled,  the  operations  of  the 
British    Columbia    Electric    Railway    Co.,    Ltd.,    were 
temporarily   suspended   owing  to  a   strike   of   its  em- 
ployees.     In    191 5   an  agreement   with   the    men    was 
entered  into  settling  the  terms  of  their  employment  and 
wages  for  the  two  years  ending  June,  1917.    However, 
in  September,  1916,  the  company  at  the  urgent  request 
of   the   employees   voluntarily   granted   an   increase   in 
wages   amounting    to    £^22,000    per    annum    to    com- 
pensate  for  the  highest  cost  of  living  on    the  under- 
standing that  the  men  would  not  ask  for  any  further 
increase  during  the  war.     In  spite  of  this  agreement, 
the  men  last  June  presented  a  demand  for  a  further 
advance  involving  about  ;^5o,ooo  per  annum,  and  this 
being  refused,  they  came  out  on  strike.     The  British 
Columbia  Co.,  either  directly  or  through  subsidiaries, 
owns  and  operates  the  urban  and  inter-urban  street  car 
systems  in  the  City  of  Vancouver  and  district,  as  well 
as    in  ,the   Island    of   Vancouver,    and    also    supplies 
gas  and  electric  light,  power,  &c.,  in  the  same  areas. 
Consequently,  the  suspension  of  operations  created  so 
much  public  inconvenience  that  the  company  was  ap- 
proached  by   the   British   Columbian   Government   and 
the  Vancouver  City  Council  with  a  view  to  bringing 
about  a  settlement,  and  it  was  ultimately  agreed  that 
the  services  should  be  resumed,  the  men  receiving  the 
increased  wages  demanded,  while  an  impartial  investi- 
gator was  to  be  appointed  to  examine  and  report  on 
the  transportation  problem  in  Vancouver  City  and  sur- 
rounding   districts,    with    particular    reference    to    the 
jitney  motor-car  competition  which  had  been  a  stand- 
ing grievance  of  the  company  for  some  years. 

Professor  Adam  Shortt,  of  Ottawa,  was  appointed 
investigator,  and  he  has  recently  submitted  a  highly 
interesting  report  which  is  almost  whoUv  in  favour 
of  the  Electric  Railway  Co.  A  large  part  of  it  is  con- 
cerned with  the  jitney  car  question.  Jitney,  it  should 
be  explained,  is  a  slang  term  for  a  five  cent  piece 
and  the  cars  to  which  the  name  is  applied  are  second- 
hand motors,  usually  raliher  decrepit  we  gather,  which 
perambulate  the  principal  routes  picking  up  passengers 
promiscuously,  and  earning  a  precarious  living  for 
their  owners.  But  they  are  very  popular  for  joy-rides 
in  fine  weather,  and  their  competition  has  made  serious 
inroads  on  the  revenues  of  the  Electric  Railway  Co., 
although  they  are  not  the  only  factor  in  the 
adverse  conditions  which  the  company  has  experi- 
enced in  recent  years.  High-water  mark  was  reached 
in  191 2,  when  a  full-blooded  boom  was  in  progress 
throughout  Canada,  and  there  was  a  perceptible  falling 
off  in  1913,  which  developed  rapidly  in  the  following 
year,  partly  owing  to  war  conditions.  Before  the 
advent  of  the  jitney  car  in  November,  1914,  the  maxi- 
mum number  of  passengers  carried  each  year  occurred 
in  the  midsummer  months  of  July  and  August,  while 
the  lowest  numbers  were  carried  in  mid-winter,  especi- 
ally in  February.  When,  however,  the  jitne3's  appeared 
on  the  scene  there  was,  in  the  first  place,  a  rapid  falling 
off  in  passengers  at  any  time,  and,  in  the  second  place, 
while  the  exceptional  midsummer  increase  had  vanished 


34 


tTbe  Jnvestors'  TRevievv. 


January  12,  1918. 


the  greatest  patronage  of  the  electric  cars  occurred 
during  the  winter,  when  weather  conditions  were  un- 
favourable for  open-air  riding.  At  any  rate,  the  gross 
earnings  of  the  electric  car  system  fell  from  $4,037,000 
in  1914  to  $2,450,000  in  1916,  a  decrease  of  approxi- 
mately 37  per  cent. ,  while  the  revenue  from  electric 
light,  power,  and  gas  during  the  same  period  declined 
only  18  per  cent.,  and  it  is  fair  to  assume  that  a  good 
deal  of  the  difference  is  due  to  the  jitney  competition. 
After  setting  aside  the  usual  percentage  for  renewals 
reserve  the  nett  revenue  of  the  company  fell  from 
$2,287,000  in  1914  to  $875,000  in  1916  on  an  invested 
capital  of  nearly  $50,000,000.  Of  this  amount 
$22,353,000  is  in  debentures  on  which  interest  is  not 
being  fully  earned,  and  that  is  a  position  that  cannot  be 
regarded  as  satisfactory  from  any  point  of  view. 

Apparently  a  good  deal  of  prejudice  of  one  sort  or 
another  has  been  created  against  the  company,  and 
there  has  been  friction  with  the  Vancouver  City  Coun- 
cil, which  has  obtained  the  abrogation  of  clauses  in 
its  Charter  requiring  it  to  buy  out  the  company  before 
itself  entering  into  the  business  of  supplying  light  and 
power.  Proifessor  Shortt  has  some  very  pungent 
remarks  to  make  in  this  connection.  "  Neither  British 
investors,"  he  says,  "  nor  those  from  any  other 
quarter  can  be  expected  to  take  lightly  the  loss  of  their 
capital  through  bad  faith.  Nor  can  they  be  expected 
to  submit  calmly  to  the  prospective  scrapping  of  their 
costly  plants  after  the  capital  invested  in  their  construc- 
tion has  been  gratefully  absorbed  in  local  expenditure, 
in  order  to  make  way  for  other  prospective  plants  which 
will  involve  for  a  few  years  the  expenditure  of  much 
new  capital,  and  thus  procure  a  temporary  return  of 
good  times.  Nor  will  they  appreciate  the  false  kind- 
ness of  any  encouragement  to  continue  at  heavy  annual 
loss  a  system  of  transportation  or  any  other  public 
utility  which  it  is  cheerfully  declared  in  advance  can 
never  be  restored  to  a  paying  ba.sis,  because  the  com- 
peting system  which  is  the  chief  cause  of  its  accumulat- 
ing losses  is  destined  to  replace  it  as  a  much  superior 
method  of  transportation.  The  only  coldly  self- 
interested,  not  to  mention  the  only  honest,  method  of 
dealing  with  a  company  placed  in  such  an  undesirable 
situation  is  not  to  encourage  it  in  the  continued  sacri- 
fice not  only  of  its  past  investments,  but  of  such  exist- 
ing reserves  as  it  may  have  accumulated  in  more  for- 
tunate times.  It  should  be  encouraged  to  at  once  face 
frankly  the  inevitable  and  to  save  what  is  possible 
from  the  wreck  of  its  investments.  Moreover,  in  part- 
ing with  the  unfortunate  investors  who  have  themselves 
parted  with  so  many  millions  of  their  capital,  almost 
entirely  expended  in  contributing  to  the  past  prosperity 
of  the  urban  districts  of  Vancouver  and  Victoria,  it 
were  well  to  do  so  in  a  courteous  if  not  a  kindly  manner. 
Doubtless  there  is  some  temptation  to  abuse  those 
from  whom  we  have  received  benefits  too  great  to 
repay,  particularly  when  there  is  little  more  to  be  ex- 
pected from  them.  Even  on  the  lowest  grounds,  how- 
ever, it  is  poor  policy  to  give  way  to  such  temptation." 
Professor  Shortt  then  discusses  at  great  length  the 
possibility  of  jitneys  becoming  an  efficient  substitute  for 
the  electric  cars,  and  shows  that  the  daily  variation  in 
the  number  of  jitneys  in  operation  from  January,  1916, 
to  May,  1917,  strongly  emphasises  the  very  irregular 
service  supplied  by  this  system  of  transportation,  and 
the  further  fact  that  it  fails  most  markedly  in  times  of 
greatest  need — in  other  words,  when  weather  conditions 
are  bad.  Thus  in  February,  1916,  the  number  varied 
from  112  to  o,  and  in  February  last  from  105  to  o. 
Even  in  the  summer  months  they  var>'  greatly,  evi- 
dently with  weather  conditions.  Prof.  Shortt,  there- 
fore, comes  to  the  conclusion  that  either  the  jitney 
competition  must  be  eliminated,  or  that  the  cities  of 
Vancouver  and  Victoria,  under  arrangement  with  the 
adjoining  towns,  must  take  over  the  street  railway  sys- 
tems and  conduct  them  as  municipal  enterprises.  In 
the  meantime  several  concessions  to  the  company  must 
be  made  as  regards  fares  and  the  frequency  of  the  ser- 
vice to  the  outlying  districts.  On  the  other  hand, 
the  company  will  have  to  reduce  its  charges  for  light 


and  power,  but  on  the  whole  the  rejxjrt  is  very  much 
in  its  favour,  and  we  hope  the  local  authorities  will 
now  see  the  desirability  of  adopting  a  more  benevo- 
lent attitude  towards  the  company,  which  has  already 
lost  heavily  through  no  fault  or  bad  management  on  its 
part. 

By-the-Way  War  Notes. 

Readers  will  be  much  better  occupied  this  week  in 
carefully  reading  Sir  Douglas  Haig's  despatch  than 
any  notes  of  ours.  It  is  a  carefully  drawn  up  review  of 
the  fighting  which  occurred  during  the  first  seven 
months  of  1917,  and  covers  the  battle  around  Arras, 
the  battle  of  Messines,  and  the  third  battle  of  Ypres, 
episodes  in  the  greatest  siege  in  the  story  of  mankind 
upon  the  earth.  We  shall  not  attempt  to  summarise 
the  information  so  fully  given  in  this  despatch,  but  it 
may  be  permissible  to  point  out  that,  incidentally,  it 
shows  how  complete  the  co-ordination  of  the  various 
Allied  arniies  was,  long  before  that  Supreme  Council 
to  effect  unity  of  direction  was  set  up  at  Versailles.  Sir 
Douglas  Haig's  armies  acted  always  in  harmony  with 
those  of  France.  He  timed  his  attacks  to  suit  the 
French  programme,  and  the  French,  on  their  side,  did 
the  same  with  the  British  armies  under  his  control. 
Hand  in  hand  they  pressed  on  the  attack,  and  the  only 
"  victory  "  the  Hohenzollern  portent  could  point  to 
was  success  in  devising  fresh  methods  of  defence  on 
each  new  front  to  which  his  troops  were  driven  back. 
In  that  industry  the  Germans  undeniably  displayed  great 
skill  and  resource,  and  the  leaders  used  their  men  up 
with  an  indifference  which  could  not  have  been  ex- 
celled had  they  been  presiding  at  the  slaughter  of  so 
many  rats.  Therefore  are  we  sure  of  attaining  our 
end. 

Also,  in  reading  the  despatch,  we  hoj)e  the  public  will 
take  note  of  what  modern  campaigning  means.  The 
popular  idea  of  "  battles  "  is  much  that  which  used  to 
be  popular  with  boys  50  years  or  more  ago  in.  the 
romances  of  James  Grant,  or  in  the  descriptions  by 
Carlyle  of  Frederick  II.  of  Prussia's  robber  campaigns 
in  the  middle  of  the  i8th  century,  or  in  the  wars  of 
Napoleon  I.  Twentieth-century  warfare  is  nothing  at 
all  like  those.  Take  one  example.  Before  the  attack 
could  be  made  which  gained  us  Messines  Heights,  which 
had  been  fortified  by  the  Germans  for  more  than  tw^o 
vears  in  the  most  elaborate  and  scientific  fashion  of 
which  the  Prussian  experts  are  masters,  an  enormous 
amount  of  work  had  to  be  done  behind  our  lines.  Roads 
and  railways  had  to  be  made  or  constructed,  the  pro- 
vision of  an  adequate  water  supply  and  of  accommoda- 
tion for  troops,  the  formation  of  dumps,  the  excavation 
of  dug-outs,  subways,  and  trenches,  and  the  assem- 
bling and  registering  of  guns  had  all  to  be  undertaken 
and  completed  under  conditions  of  more  than  ordinary 
disadvantage.  As  before  Messines,  so  everywhere,  in 
ever  varying  weather  and  in  face  of  obstacles  in- 
numerable. Yet  so  efficient  was  our  army  of  labour, 
and  so  complete  the  arrangements  made,  that  before  the 
Messines-Wytschaete  Ridge  was  assaulted  pip>e-lines 
had  been  laid  down  and  taken  forward  from  the  exist- 
ing lakes,  from  catch-pits  constructed  on  the  Kemmel 
Hills,  and  from  sterilising  barges  on  the  Lys,  so  that 
by  June  15  they  had  reached  Messines,  Wytschaete,  and 
the  Dam  Strasse,  and  were  supplying  water  at  the  rate 
of  between  450,000  and  600,000  gallons  daily.  Equally 
perfect  were  the  arrangements  for  supplying  food  and 
ammunitions,  and  not  only  water,  but  rations,  stores, 
and  ammunition  were  carried  forward  by  pack  animals 
almost  on  the  heels  of  the  advancing  troops,  reaching 
these  troops  within  from  20  to  40  minutes  of  the  taking 
of  new  positions.  In  one  case  carrying  parties  arrived 
with  packs,  and  dumps  were  formed  within  four 
minutes  of  the  capture  of  the  objective.  No  wonder 
our  advance  sometimes  seems  slow,  but  the  mass  of 
our  op>erations  for  the  jjeriod  of  last  year  embraced  in 
the  Field  Marshal's  revievi',  shows  an  overwhelming 
superiority  over  the  enemy,  in  spite  of  his  skill  and 
training,  and  of  the  complete  dcA-otion  of  his  leaders' 
minds  to  the  art  of  war  irbits  most  ruthless  form.  It  is 
a  most  heartening  despatch,  and  published  at  the  right 


January  12,  1918. 


tibe  3nvestor8'  *Keview. 


35 


I 


time,  when  we  are  in  wintry  mood,  disposed  to  gloom. 
It  forms  a  record  of  almost  unbroken  success  amid 
difficulties  and  oppositions  that  must  now  and  then 
have  looked  almost  insuperable. 

There  is  really  no  need  at  all  for  depression,  we  must 
keep  on  insisting-,  even  if  readers  are  tired  of  our  doing 
so.     At  the  moment  frost  and  snow  almost  stop  active 
infantry  fighting,  but  the  enemy  is  in  such  a  position 
that  he  has  to  use   up  his  pawns   in  making  attacks 
without  pause  lest  his  armies  melt  away  and  dissolve 
under  their  numberless  disappointments  and  miseries. 
Nothing   seems  to  be   going   on,    and   yet  the  enemy 
does  go   on    in   never-resting   futility.     A    reason   can 
seldom  be  given  by  observers  why   this  post  and  the 
other     should     be     assaulted — at     night     and    at     all 
hours   of    the    day — by    bands   of    German    troops    of 
greater  or  less  size,  which  never  effect  anything  valu- 
able even  when  they  seem  to  succeed  in  capturing  a 
man  or  two  or  an  observation   post  or  the  end  of  a 
trench.      But  it  ensures  the  slaying  of  the  unfortunate 
wretches  who  continue  to  die  like  the  rats  aforesaid  at 
the   bidding  of  the   ruffians   around   the    Hohcnzollern 
throne,  and  after  reading  Sir  Douglas  Haig's  despatch 
we  can   well  believe  that  the  estimated   proportionate 
slaughter  of  the  Germans  since  the  war  began  is  nine 
to  three  British,  or  thereabouts.      It  is  nearly  as  good 
with  the   French,   and  in   the    case  of    a   free    people 
would  long  ago  have  swept  the  tyrant  Prussian  hordes 
out  of  existence,  because  the  men  would  have  refused 
to  go  and  be  kiJled.     But  the  credulous  lust  and  loot- 
driven  German  pawn  goes  on  and  on  to  his  doom. 

On  the  Italian  front  the  Austrians  are  .said  to  be  ■ 
withdrawing  troops,  presumably  because  they  are 
unable  to  feed  them  now  that  the  snows  of  winter  have 
come  in  the  Alps  to  block  their  lines  of  communication. 
Will  the  Hapsburg  swineherds  leave  disaffected  troops 
to  perish  up  among  the  Italian  peaks  and  passes,  and 
send  what  remains  of  their  best  men  to  join  the  Ger- 
mans in  the  bragged-about  "  victorious  assault  " 
which  the  high  Prussian  staff  touts  everywhere  as 
being  organised  on  the  West;  or  into  the  Balkans,  or 
against  Rumania?  We  do  not  know,  and  do  we  care 
much.  We  said  at  the  first  that  the  Habsburg  plunge 
into  Italy  came  too  late,  and  it  is  proving  to  be  so.  Our 
business,  however,  is  to  be  ready  for  the  baflfled,  raging 
foe  at  all  point.s,  and  meantime  to  continue  to  do  our 
utmost  to  prevent  food  from  reaching  his  subjects,  or 

IB  to  shut  them  off  doing  trade  with  any  country  that  has 
H  food  to  spare,  stealable.  That  is  a  cruel  necessity,  but 
both  Austrians  and  Germans  have  themselves  to  thank 
that  they  have  driven  us  to  pursue  without  pause  or 
ruth  the  obliteration  of  their  Empires. 

There  is  going  to  be  disappointment  bitter  and  pro- 
longed for  the  Berlin  gang  in  their  efforts  to  reduce 
Russia  to  vassalage  and  to  open  Russian  trade  to  the 
domineering  Prussian.  He  wants,  above  all,  instant 
supplies  of  Russian  grain,  and  they  are  not  to  be  had. 
It  looks  at  the  moment  as  if  the  warriors  and  Kuhl- 
mann  the  over-subtle  had  created  a  Frankenstein  for 
themselves  at  Brest-Litovsk  which  may  lead  to  the  dis- 
integration of  Germany  itself  before  all  is  over.  The 
anarchy  they  have  brought  on  Russia  will  avenge  itself. 
But  everywhere  the  Prussian  boasting  and  threats  grow 
more  strident  and  the  rage  l>ecomes  more  spluttery. 
According  to  these  defeated  world-swayers,  not  only  are 
great  hosts  being  gathered  by  them  in  the  West — all 
their  best  troops  transferred  from  the  Russian  front, 
&c.,  &'c. — and  supplies  piled  up  behind  them,  with  an 
infinity  of  every  instrument  of  wholesale  murder  Ger- 
man devilishness  can  invent,  all  held  ready  for  the 
coming,  ever  coming,  triumph,  but  German  troops  are 
also  to-be  sent  to  Palestine  to  recapture  Jerusalem,  and 

tlhe  Turks  are  to  be  helped  to  further  deeds  of  savage 
valour  in  Mesopotamia.  Owing  to  the  collapse  of  Rus- 
sian opposition,  Germany  and"  .Austria,  we  are  daily 
assured,  will  have  an  enormous  superiority  everywhere 
next  spring,  and  we  have  still  weaklings  among  us  who 
believe.  No  mention  is  ever  made  by  the  Berlin  gang 
of  America — except  once,  when  the  tale  was  put  round 
that  "  only  125,000  American  troops  "  had  been  sent  to 
Europe  to  help  us.     We  dare  sav  the  Germans  would 


I 


I 


like  to  believe  it,  and  probably  our  pacifists  do.  They 
will  all  know  better  three  or  four  months  hence,  perhaps 
sooner,  if  spring  should  be  early,  but  our  "  let  us  have 
peace  and  be  slaves  "  pacifists  will  say  they  still  believe 
and  love  their  dear  German  brothers. 

Meanwhile  the  Allied  supremacy  in  the  air  be- 
comes more  and  more  pronounced.  In  men  and 
machines  the  French  and  ourselves  are  now  de- 
finitely supreme,  especially  the  French.  The 
French  return  for  September  reveals  the  fact  that 
76  German  aeroplanes  were  destroyed,  or  put 
out  of  action,  23  of  them  being  brought  down  in  the 
French  lines,  18  seen  to  crash  to  the  ground  in  German 
territory,  besides  35  others  "  which  appear  to  have  been 
destroyed,  but  who.se  fate  is  not  yet  conclusively  estab- 
lished." Against  this  the  French  lost  seven  aero- 
planes shot  down  or  lost  in  German  lines,  three  in 
French  lines.  Nine  others  damaged  also  landed  in 
French  lines,  but  including  one  captive  balloon  burnt, 
only  20  French  machines  in  all  were  destroyed  or 
damaged  against  76  German.  That  is  a  fine  record, 
and  presently  the  French  and  British  air  squadrons  will 
be  powerfully  reinforced  by  the  airmen  of  the  United 
.States.  Well  may  !he  Germans  intrigue,  get  up  sham 
quarrels  amongst  themselves,  to  try  and  mislead  us, 
make  beguiling  propositions,  offer  deceptive  bribes  of 
all  sorts,  and  lie  and  lie  like  men  in  frenzy  in  the  hope 
of  dodging  us  into  some  kind  of  peace  before  America 
is  upon  them.  They  should  be  treated  with  silence 
while  we  press  on  with  the  work  in  hand. 

A  hospital  ship,  the  Rewa.  a  vessel  of  over  7,000 
tons,  brilliantly  lighted  and  displaying  all  the  distinc- 
tive Red  Cross  markings,  was  attacked  without  warn- 
ing at  midnight  on  FViday  last  in  the  Bristol  Channel 
and  sunk.  Happily  before  she  went  down  all  the 
wounded,  nearly  300,  were  saved,  and  the  only  casual- 
ties among  the  crew  were  three  Lascars,  who  were  pro- 
bably killed  by  the  explosion.  This,  as  the  Times 
points  out,  is  the  sixth  British  hospital  ship  known  de- 
finitely to  have  been  torpedoed  without  warning  during 
the  last  10  months.  In  each  case  the  crime  was  com- 
mitted during  the  night  on  the  sly,  and  that  is  the  only 
evidence  available  to  indicate  that  there  may  be  some 
rudimentary  sense  of  shame  left  in  the  German  mind. 
'J'o  break  a  "  pledge  "  is  to  do  a  good  deed  in  their 
eyes.  How  any  man  possessing  a  spark  of  honour 
or  loyalty  to  righteousness  can  still  regard  these  out- 
ca.sts  from  civilisation  as  human  beings  to  be  parleyed 
with  and  whose  word  can  be  relied  on,  baffles  us  com- 
pletely to  understand. 

Dastardly  atrocities  like  this  of  the  Rewa  are  not 
embraced  in  the  dry  statistics  of  torpedoings  of  British 
merchant  ships  published  every  week.  These,  we  are 
sorry  to  say,  continue  to  be  heavy.  Nominally,  i8 
ships  of  1 ,600  tons  gross  and  upwards  were  sunk  last 
week,  and  three  smaller  vessels,  besides  four  fishing 
craft.  Eleven  unsuccessful  attacks  were  also  returned, 
but  the  real  figures  of  the  week  were  not  quite  so  badi 
as  this,  because  two  large  ships  previously  sunk,  one 
of  them  as  long  ago  as  in  the  week  ended  July  22  last, 
are  included  in  the  return,  also  one  small  vessel,  and 
the  inumber  unsuccessfully  attacked  is  reduced  to  nine. 
Thus  the  actual  sinkings  of  the  past  week  is  reduced  to 
22,  and  the  number  of  large  ships  lost  to  16.  Even  so, 
this  is  very  near  the  average,  for  the  large  vessels,  at 
least,  which  for  the  35  weeks  from  March  to  October 
was  only  18.  The  total  average  of  vessels  of  all  sizes 
sunk  was  for  the  35  weeks,  March  to  October,  24.4, 
and  last  vi-eek's  sinkings  were  only  2.4  short  of  that 
average.  In  the  fortnight  ended  with  last  Saturday  33 
vessels  of  i  ,600  tons  and  tipwards  have  been  sent  to  the 
bottom,  and  in  the  previous  three  weeks  the  total  was 
only  39,  that  is  to  say,  only  six  more  in  the  three  weeks 
than  in  the  past  fortnight.  This  is  most  disagreeable, 
and  we  hope  the  shufflings  around  now  being  carried 
out  at  the  .Admiralty  arc  going  to  bring  men  and  instru- 
ments into  play  capable  of  altering  the  record  for  the 
better.  There  must  be  a  way  of  mastering  the  sub- 
marine piracy  and  murder,  and  our  authorities  have 
got  to  find  it.  Has  the  utmost  been  done  to  stop  the 
egress  of  the  enemy  submarines,  or  to  ferret  out  and 
destroy  their  lairs?     Evidently  not  yet. 


36 


^be  Jnvestote'  TRevtew. 


January  12,  1918. 


zyx 


SCOTTISH  UNION  &  NATIONAL 

INSURANCE  COMPANY. 

ESTABLISHED    1824. 

ASSETS    exceed    £11,000,000. 

FIRE  (INCLUDING  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  CLASS  BREAKAGE,  TRANSIT  OF 
SECURITIES,  FIDELITY,  PROPERTY  OWNERS'  LIABILITIES,  HORSE  DRIVING 
ACCIDENTS.  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh;  35,  St.  Andrew  Square. 
London:  S,  Walbrook,  E.G.  4,  and  4,  St.  James'  St.,  S.W.  1. 

ASSURANCE    COMPANY 
LIMITED, 

EsTAKr.ISHKfi   I7fJ2. 

Head  Offioe:  PHSNIX  HOUSE,  KING  WILLIAM  STREET,  LONDON,  E.C.  4. 
Total  Assets  Exceed  iCl7,ooo,000. 
Claims  Paid  Exceed  eQ8,000,000« 

Chairman— Rt.  Hon.  LORD  GEORGE  HAMILTON,  P.C.G.C.S.I 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

Low  of  Profits  following  Fire,  Workmen's  Compensation,  Fidelity  Guarantee, 
Burglary,  Trustee  aud  Executor,  &c. 
Prospectuses  and  Proposal  Forms  may  be  obtained  on  application  to  any  of 
the  Branch  Offices  or  Agencies,  or  to  the  Head  Offices 

General  Manager        -        SIR  GERALD  H.  RYAN. 

ROYAL  EXCHANGE  ASSURANCE. 

Incorporated  A. D,  1720.  Governor:  Vivian  Hugh  Smith, Esq. 

FIRE.  IiIFE.  SEA.  ACCIDENTS.  MOTOR-CAR.  PLATE 
OtiASS.  BUROIiARY.  ANNUITIES.  FIDEIiITY  GUARAN- 
TEES. EHPLOYERS  LIABILITY.  LIVE  STOCK.  THIRD 
PARTY.  LIFT,  BOILER  AND  MACHINERY.  TRUSTEE 
AND     EXECUTOR     BUSINESS. 

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THE  LIVERPOOL   &  LONDON  &  GLOBE 

INSURANCE    CO.,    LTD. 

FIRE.        LIFE.        ACCIDENT.        MARINE. 
Total  Assets  excead    .       .       -    £14,800,000 
Total  Claims  Paid  over      -       -    £86,000,000 


Head  Office: 
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London  Chief  Office: 
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DON'T    CASH   YOUR 
VICTORY  LOAN  DIVIDEND. 

£2  10s.  Dividend  will  double  your 
holding  of  War  Stock  and  produce 
£100  new  money  for  the  War. 

Write  for  particulars  to  Prudential 
Assurance  Co.,  Ltd.,  142,  Holborn 
Bars,  E.C.I,  or  to  any  of  its  Agents. 

TLhc  investors'  1Re\?iev\>. 

Money    and   Credit    Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5J  percent,  ea 
Thursday,  April  5,  19x7.) 


Norfolk  House,  Friday  Evening, 

With  the  reduction  in  deposit  rates,  the  Bank  of 
England  reduced  the  rate  of  interest  which  it  allows 
the  clearing  banks  on  deposits  at  three  days'  notice 
from  4  to  3i  per  cent.,  but  maintained  the  rate  which  it 
allows  on  foreign  balances  here  at  4J  per  cent.  This 
discrimination  in  favour  of  foreign  money,  as  an  induce- 
ment for  these  funds  to  remain  here,  was  first  made  in 
November  last,  and  was  at  first  confined  to  the  clearing 
banks.     A  few  days  ago  it  was  extended  to    foreign 


balances  in  the  hands  of  bankers  who  are  not  members 
of  the  clearing  house — to  the  Scotch  banks  and  other.s. 
But  .so  far  it  has  not  been  extended  to  Colonial  funds 
here,  and,  as  a  result  of  the  reduction  in  money  rates, 
a  considerable  proportion  of  them  have,  we  learn,  been 
withdrawn  from  Lombard  Street.  It  is  desirable  that 
this  money  should  remain  here,  and  it  is  urged  that,  as 
Colonial  funds  here  are  regarded  as  foreign  money  for 
purposes  of  taxation,  should  not  be  treated  as  domestic- 
funds  for  interest  purposes.  Meanwhile,  we  suggest 
that  this  discrimination  in  favour  of  foreign  funds 
having  proved  effective,  there  is  no  longer  any  need  for 
the  Bank  to  maintain  the  .special  deposit  rate  of  3^  per 
cent,  for  domestic  money.  So  long  as  the  Bank  adheres 
to  that  arrangement — which  was  originally  made  in 
order  to  maintain  money  rates — the  price  of  money  is 
fixed,  for  the  clearing  banks,  naturally,  will  not  lend 
beiow  that  figure.  If  that  arrangement  were  dropped, 
money  would  find  its  own  level  in  the  competition  of 
the  market. 

Had  circumstances  been  at  all  ordinary  we  should 
certainly  have  begun  to  see  a  scramble  for  credits  in 
the  Money  market.  As  it  is,  there  is  such  a  wealth  of 
bankers'  credit  in  existence  that  we  can  hardly  conceive 
the  occurrence  of  a  really  strained  market.  How  the 
position  is  can  Ije  seen  from  this  week's  Bank  return. 
The  most  conspicuous  change  in  it  is  a  reduction  of 
^34,878,000  in  the  other  deposits.  The  week's 
shrinkage,  in  fact,  is  greater  than  the  total  amount  of 
these  deposits  frequently  stood  at  in  the  pre-war  age  ; 
but  they  now  amount  to  ;^i 23,534,000,  and  in  spite 
of  the  huge  amount  of  war  finance  more  or  less  em- 
bedded in  the  figure,  there  ought  to  be  suflicient  margin 
to  keep  the  market  from  extremities  until  the  end  of 
March.  At  the  same  time  we  must  expect  spasms  of 
scarcity  such  as  occurred  in  a  faint  way  this  week. 
That  is  to  say,  short  credits  may  cost  J  or  J  per  cent, 
more  one  day  than  another,  but  as  long  as  the  great 
apparatus  of  our  banking  credit  continues  to  function 
with  its  accustomed  smoothness,  there  will  be  no 
pinch. 

The  other  changes  in  the  Bank  return  show  whence 
the  money  drawn  off  other  deposits  has  come,  and, 
in  part,  where  it  has  gone.  Thus  ;^"5, 824,000  has  been 
added  to  the  public  deposits,  and  ;^i3,966,ooo  has  been 
paid  off  under  Government  securities,  .^.t  the  same 
time,  other  securities  are  less  by  ;^i5,82o,ooo,  which 
implies  that  here  also  the  cash  received  by  the  Ex- 
chequer has  been  employed  in  paying  off  debts  of  some 
kind.  Other  securities,  however,  are  still  /^48,o77,ooo 
larger  than  they  were  a  year  ago,  so  that  the  market 
remains  deeply  a  creditor  to  the  Government.  The  re- 
serve has  risen  ;£:768,ooo  to  ;^3 1,826,000— that  is  to 
say,  notes  in  circulation  have  fallen  off  /^888,ooo,  but 
the  Bank  has  lost  ;£^i  20,000  in  coin  withdrawn,  so 
that  the  nett  increase  in  the  reserve  is  only  as  stated. 
Thanks  to  a  nett  reduction  of  about  ;^29,ooo,ooo  in 
the  liabilities  and  this  increase  in  the  reserve,  the  pro- 
portion is  up  3^  to  igf  per  cent. 

The  ;^8,ooo,ooo  ot  French  Treasury  bills  offered  for 
sale  this  week  in  replacement  of  ;^7,978,ooo  of  bills  fall- 
ing due  on  January  15,  was  quickly  subscribed,  in  sptte 
of  the  fact  that  the  rate  of  discount  was  fixed  at  si 
per  cent.,  or  J  per  cent,  less  than  for  the  old  bills.  The 
new  bills  will  mature  in  12  months,  namely,  on  Janu- 
ary 15,   1919. 

The  Yokohiima  Specie  Bank,  Ltd.,  London,  an- 
nounces that  ;^338,ooo  4*  per  cent,  sterling  bonds  of 
the  1st  series,  and  ;^i62,ooo  4^  per  cent,  sterling  bonds 
of  the  2nd  series,  of  the  sterling  loans  of  1905,  have 
been  purchased  on  behalf  of  the  Imperial  Japanese 
Government  for  the  purpose  of  cancellation,  and  the 
said  bonds  are  now  cancelled. 

In  November  last  the  Government  of  the  State  of 
Bahia  instructed  their  London  agents  publicly  to  an- 
nounce the  resumption  by  the  State  of  cash  payments 
on  its  external  loans.  But,  owing  to  unforeseen  circum- 
stances, the  Government  is  unable  to  make  the  neces- 
.sary  remittances  at  present.  A  further  announcement, 
hovve\er,  will  be  made  on  the  subject  slwrtly. 


January   12,  igiJ 


(the  investors'  Review. 


37 


I 


1^ 


There  has  been  a  further  subslanlial  advance  in 
Scandinavian  exchange  rates  on  further  buying,  effected 
in  the  hope  entertained  in  those  countries  of  an  early 
jjeace.  Christiania  is  about  45  points  higher  at 
14.9s  '^''•>  Copenhagen  is  27^  points  higher  at  15.574  kr., 
and  Stockholm  shows  a  rise  of  46  points  at  14. 41^  kr. 
Pesetos  have  improved  still  further  in  value,  Madrid 
being  quoted  at  19.50  p.  to  the  pound.  Steps,  however, 
are  now  being  taken  to  rectify  the  position,  a  British 
Exchange  Mission,  headed  by  Lord  Cunliffe,  being  now 
in  Spain  negotiating  with  the  Spanish  banks  on  the  sub- 
ject. Probably  a  Spanish  credit  will  be  arranged  for 
the  purpose.  A  feature  this  week  has  been  a  sharp 
rise  in  Montreal,  which  is  2|  cents,  higher  at  $4.8o|. 
But  a  still  more  interesting  event  has  been  a  marked 
improvement  in  the  value  of  Finnish  marks,  which  are 
now  quoted  at  27  to  the  pound.  A  little  while  ago  they 
stood  at  50,  and  more  recently  at  37.  The  improvement 
in  the  value  of  Finnish  currency  is  due  to  the  recogni- 
tion which  has  now  been  granted  to  the  independence 
of  the  Finland  Republic. 

We  confess  to  a  feeling  of  considerable  surprise  in 
reading  Sir  Robert  Kindersley's  pronouncement 
against  premium  bonds,  but  this  week  we  have  neither 
time  nor  space  available  for  the  discussion  of  his  circu- 
lar, and  it  may  not  be  worth  while  to  enter  into  any 
lengthened  argument.  But  we  should  like  to  ask  him 
to  define  "  gambling,"  and  further  to  consider  whether 
the  concern  of  the  State  is  not  greater  to  obtain  its 
money  cheaply  than  for  the  individual  to  get  high 
interest?  There  could  be  no  meaner  argument  than 
that  in  which  Sir  liobert  seeks  to  demonstrate  that  the 
man  who  invests  in  a  premium  bond  bearing  2^  per 
cent,  interest  current  for  10  years  loses  ^30  of  the  in- 
terest he  would  otherwise  be  entitled  to,  and  gets  a 
licence  to  spend  over  ;^30,ooo,ooo  in  a  State  lottery. 
That  is  not  the  pttitude  we  should  expect  from  a  finan- 
cier of  Sir  Robert's  experience  and  skill.  Who  said 
we  should  only  issue  ten-year  bonds?  That  would  be 
absurd  ? 

Much  discussion  goes  on  amongst  those  who  studv 
problems  of  currency  as  to  the  effect  of  our  expanding 
paper  currency  on  prices  and  so  forth.  Mr.  Faithfull 
Begg  had  an  interesting  article  on  the  subject  of  our 
currency  notes  in  Thursday's  Financial  Times,  but  his 
conclusions  did  not  do  much  to  clear  up  the  one  essen- 
tial pwint.  Is  our  paper  money  in  the  form  of  Treasury 
notes  depreciating  the  purchasing  power  of  the 
theoretical  sovereign,  as  we  may  call  it?  He  rather 
thought  that  it  had  not  done  much  hitherto,  but 
switched  off  to  proclaim  his  opinion  that  it  would  have 
been  better  to  suspend  the  Bank  Act  of  1844  and  make 
all  the  paper  money  Bank  of  England  notes.  We  do 
not  agree  with  that  view,  but  need  not  further  discuss 
it,  because  it  has  no  relevancy  to  the  real  problem  be- 
fore the  nation.  We  only  allude  to  it  now  to  indicate 
that  the  subject  is  evidently  occupying  the  Treasury 
and  the  Ministry  of  Reconsti  uction ;  for  the  Lords 
Commissioners  of  the  Treasury  and  the  Minister  of 
Reconstruction  have  united  in  appointing  a  Committee 
to  survey  the  various  problems  likely  to  arise  in  con- 
nection with  currency  and  foreign  exchanges  "  during 
the  period  of  reconstruction,"  i.e.,  after  the  war.  This 
Committee  is  to  report  upon  the  steps  required  to  bring 
about  the  restoration  of  normal  conditions  in  due 
course,  and  no  more  difficult  task  was  ever  laid  upon 
any  body  of  men.  It  is  impossible  to  forecast  what  is 
going  to  happen  when  the  war  ends.  Indeed,  we  are 
not  sure  that  some  of  the  most  acute  problems  con- 
nected with  foreign  exchanges  and  the  value  of  cur- 
rencies will  not  come  to  a  head  months  and  months 
before  the  war  is  wound  up.  Be  that  as  it  may,  the 
men  selected  to  form  this  Committee  are  all  well 
qualified  to  act  with  decision,  and  to  form  sound  and 
trustworthy  judgments  on  the  difficult  problems  they 
will  be  called  upon  to  deal  with  from  time  to  time. 
Here  are  the  names  : — Lord  Cunlifte,  G.B.E.,  Governor 
of  the  Bank  of  England,  chairman;  Sir  Charles  Addis, 
Hongkong  and  Shanghai  Banking  Corporation  ;  Hon. 
Rupert  Beckett,  Beckett  and  Co.";  Sir  John  Bradbury, 
K.C.B.,  Secretarv  to  the  Treasury;  Mr.  G.  C.  Cassels, 


Bank  of  Montreal ;  Mr.  f .  Gaspard  I'"arrer,  Baring  and 
Co. ;  Hon.  Herbert  Gibbs,  of  Antony  Gibbs  and  Sons  ; 
Mr.  W.  H.  N.  Goschen,  chairman  of  the  Clearing 
Bankers'  Committee;  Lord  Inchcape  of  Strathnaver ; 
Mr.  R.  W.  Jeans,  Bank  of  Australasia ;  .Mr.  A.  C.  Pigou, 
M.-l.,  Professor  of  Political  Economy,  Cambridge  Uni- 
versity ;  Mr.  G.  F.  Stewart,  D.L.,  F\S.l.,  Ex-Governor 
of  the  Bank  of  Ireland  ;  Mr.  William  Wallace,  Royal 
Bank  of  Scotland.  Mr.  G.  C.  L'pcott,  of  the  Treasury 
and  Ministry  of  Reconstruction,  will  act  as  secretary 
to  the  Committee. 

Mr.  P.  D.  Blake,  a  bank  manager,  has  taken  the 
trouble  to  draw  up  a  model  prospectus  for  the  guidance 
of  the  Bank  of  England  in  marketing  its  National  War 
bonds,  and  certainly  his  more  elaborate  compilation  is 
an  improvement  upon  the  old-fashioned,  dignified 
brevity  of  the  Bank's  document.  He  puts  in  the  fore- 
front of  the  announcement  how,  when,  and  where  to 
apply,  and  clear  directions  on  many  points  of  great 
interest  to  the  intending  investor. 

Silver. 
Silver  has  been  firm  all  week,  but  the  price  has  not 
changed  from  45gd.  per  oz.,  which  is  ifd.  higher  than 
that  quoted  at  the  end  of  the  year.  Very  little  has 
been  offered  from  New  York,  Messrs.  Mocatta  say,  no 
doubt  partly  because  of  the  purchases  of  the  Govern- 
ment there.  There  is  no  further  news  of  the  Slate 
Government's  purchase  of  the  native  production,  but 
until  that  appeal  is  settled,  holders  are  not  going  to 
part  with  their  silver.  From  Messrs.  Montagu's  circu- 
lar we  learn  that  the  stock  in  Bombay  remains  at  3,700 
bars,  and  in  Shanghai,  on  January  5,  the  stock  was 
24,500,000  ozs.  in  sycee  and  $13,200,000.  This  is  an 
increase  of  100,000  in  the  ounces  and  n  decrease  of 
$100,000. 


Applications  for  the  Rs.  40,00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Ks.  2,22,55,000.  Of  these 
Rs.  37,04,000  were  allotted  in  deferred  transfers,  and 
Rs.  2,g6,ooo  in  immediate  transfers.  Tenders  for  bills  and  de- 
ferred transfers  at  is.  4  2g-32d.  and  for  immediate  transfers 
at  IS.  5d.  received  about  17  per  cent.  Since  April  last 
Rs.  38,20,00,000  have  been  sold,  realising  ^,^26, 173,977.  Next 
week  40  lakhs  will  again  be  offered. 


BANK    OF    ENGLAND, 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32.  for  the 
Week  ending  on  Wednesdav.  January  0,  1918. 
rSSUE    DEPARTMENT. 

£ 


Notes  Issued 


i 
76,358,; 


^76,158,790  I 


Government  Debt.. 
Other  Securities    .. 
Gold  Coin  and  BullioD 
Silver  Bullion       ., 


Proptleiors'  Capital 

Rest 

Publio  I)eposits(inclndiog 
Bxcfaequer,  Savings 
Banks, Commissioners 
of  National  Debt,  and 
Dividend  Aooounts)  . . 

Other  r»eposits 

Seven  Day  and  otber  Bills 


BANKING    DEPARTMENT. 

£ 

..      14,553.000 
3,360,805 


37,^98,589 

123.533,523 

8,980 


Dated  January  lo,  rgiS. 


£179,354,906 


Government  Securities 
Otber  Securities    .. 

Notes 

Gold  and  Silver  Coin 


11,015,100 
7,43<.900 
57,908,790 


£76,358  790 


£ 

56  Hi>6,i-;o 
90  661,200. 
30.^55  tf>6o 
1,169,876 


f  179.354 .906 
J.  G.  NAIRNE.  Chief  Cashier. 


BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
Jan.  10. 


£ 

3,396.022 

49,5  9,490 

130,248,009 

29,364 

120,273.560 
42,584,303 
34,898,022 


£ 

39,016,540 
55,464,562 

'94  PC. 
6    ,, 


Liabilitiea. 
Rest 

Pub.  Depositi  .. 
Other    do. 
r  Day  Bills 
Assets, 
Gov,  Securlllea. 
Other        do. 
Total  Reserve . . 


NoteClrculatlon 
Coin  and  Bullion 
Proportion 
Bank  Rate 


Jan.  2 
igi8. 


£ 

3,321,425 

32,074,902 

158,411,326 

I  (,660 

70,833,770 
106,480,723 
31,037,820 


£ 

46,591,020 

59.193,840 

16-3  p.c. 

5       .. 


Jan.  9, 
191S. 


£ 

3,360, 

37,898, 

"3,533. 

8, 

56,868, 
90,661, 
3I,8j5. 


£ 

45.703.11" 

59  078  t66 
197  p.c. 


loctease. 


£ 

39.380 
5,823.687 


Decrease. 
13,965,600 
15.S19.523 


Deotsau. 


34,877,803 

2.671 

Increase. 


767,716 


35,648,190     35,648,190 


Inereasg. 

£ 


Deorease, 

£ 

88^,890 

120,174 


38 


Zbc  Jnvestors'  TRevlew, 


January  12,  1918. 


PUBLIC   INCOME  AND   EXPENDITURE. 

(For  7  days  ended  Jan.  5.) 


NEW   YORK  ASSOCIATED   BANKS   (dollar  at  4g.). 


RsvaMUB. 

Expenditure. 

Cuttoms         

953.oa> 

National  Debt  Service      . , 

«.34ap934 

Excise 

266,000 

Inter  st,  &c.,  on  War  Debt 

1,601,352 

Estate,  &c.,  Duties  .. 

6a8,ooo 

Development  &  Road  Impvt 

Stamps 

94.000 

PavmcnTSto  Local  Taxation 
Other    Consolidated    Fund 

J  0,000 

Land  Tax  and  House  Duty 

50,000 

Properly  and  Income  Tax 

7,491.000 

Chirges        

— 

Exceaa  Profits  Tax  .. 

2,707,000 

Supply  Services 
Bullion  Advances     .. 

40,660,000 

Land  Values  ..        ..        »« 

30,000 

50,000 

Post  Office 

i,500,roo 

For   Advai  ce   for    Interest 

Crown  Lands 

40,000 

on  Exchequer  Bonds  un- 

Sundry Loans 

Miscellaneous 

189,087 

der   Capital  Expenditure 

93,000 

(Mcnry)  Act,  1004  ., 
For  Treasury  Bills  .. 

— 

Bullion  adv.mcRS  repaid    .. 

100,000 

67,094,000 

ForTreasurylJilIs  for  Supply 

32,949,000 

War  Loan  and  Exchequer 

5%  Hxcluiquer  Bonds,  1922. . 

— 

Bonds 

__ 

(i%  Exchequer  IJonds.  1920. . 
NationI  war  Bonds         ..* 

_ 

Other  Debt  under  War  Loan 

20,245,000 

Acts,  19:4-16 

— 

War  Expenditure  Certificates 

For  exchequer  Bonds  under 

War  Savings  Certificates., 

1,300,000 

Section  6i  of  Finance  Act, 

4%  War  Loan,  1929  1942  ] 
5%  War  Loan,  1929-1947  f  " 

1916,  and  Seciiun  34,  1917 

— 

Under   Telegraph    (Money) 

Other  Dtrbts  created  under 

Act,  1Q13 
Under    Post    Office    (Lon- 

^ 

War  Loan  Act.  1915,  and 

Finance  Act,  1916. . 

16,133,264 

don)  Railway  Act,  1913  .. 

27,000 

Telegraph  Money  Act,  1013 
Under  Post  Office  Rly.  Act, 

— 

Under  Mililar    Works  Acts 

— 

Under  Housing  Act,  1914- • 

— 

1913 

,— 

Public    Buildings  Expendi- 

Under Military  Works  Act, 

ture  Act,  1903 

— 

Un<tOT  PudUc  Buildings    ., 



Old  Sinking  Fund.  1907-8.. 

— 

— 

Sinking  Fund,  1914.. 

— 

Under  Housing  Act.. 

-^ 

China  In'ieninlty 

— 

Repayment  of  Advance  for 

Cunard  Agreement  Act     . . 

— 

Interest     on     Exchequer 

Depreciation  Fund  .. 

— 

Bonds           

— 

Suez  Canal  Drawn  Shares.. 

— 

China  Indemnity 

— 

Temporary  Ad  vane  s  Repaid 

10,000,000 

Cunard  Loan  repayment   . . 

™ 

Increase      In       Exchequer 

Suez  Canal  Drawn  Snares.. 

— 

balances       

799,801 

Ways  and  Means  Advances 

a,coo,ooo 

Decrease      in      Exchequer 

balances       

■~ 

£122,5851087 

£122,585.087 

^Excluding  sales  through  banks  which  have  not  yet  been  brought  to  account. 
CURRENCY   NOTES. 

Return  of  Currency  Notes  for  the  week  ended  January  9,  1918. 


Issued. 

Cancelled. 

Outstanding. 

£1  notes         

los.  notes        

Note  certificates 
Previous  total 

£  ^ 
2,933,276 

l,o6j,428 
799."50,5M 

3,786,523 

1,312,980 

400,000 

586,599,603 

152,832,947 
37.347,131 
21,650,000 

2l2,4<0,95o 

803,047,258 

591,219,180 

211,828,078 

Ratio  of  gold    held  against  notes,    this  week.  1497  p.c. ;  last  week  14.98  p.c. 
LONDON    BANKERS'    CLEANING. 


Date. 

1917. 

1916. 

Increase. 

Decrease. 

December 

1,439,206,000 

1,204,438,0-10 

{ 
234,768,000 

I 

Total 

19,121,196,000 

15,275,040,000 

3,846,158,000 

- 

January  2 
•1       9 

igi8. 
400,652,000 
455,056,000 

1917. 
389,111,000 
376,702,000 

11,541,000 
78,354,000 

- 

Total 

855,708,000     1     765,813,000 

89,895  000 

- 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  4g.). 


Gold  coin  and  certificates 
Gold  Settlement  Fund 
Gold  with  foreign  agencies 

Total  gold  held  by  banks 
Gold  with  Ftrderal  Res.  Agent 
Gold  Redemption  Fund 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

Total  reserves  . . 
Bills  discounted— Members'. . 
Bills  bought  in  open  market 

Total  bills  on  hand     . . 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec. 
Munieipal  warrants     . . 
Loans  on  gold  coin  and  bullion 

T©tal  earning  assets 
Due  bn  other  Fed  Res  bnk- 
UncoUected  items 
Total  dfcdctns.  fm  gross  dep- 
5%Red.  Fund  agFed.Res.bknts 
All  other  resources 

Total  resources 
Capital  paid  in  . . 
Government  deposits  ., 
Due  to  membrs  -  Res.  account 
Due  to  oon-mbrs — clearing  ac. 
Members'  bank  deposits — nett 
Collection  items 

Total  gross  deposits 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn— nettliab. 
All  other  liab,  in  for  Govcrdts 

Total  liabilities 

Gold  res.  ag  nett  deposit  liab 

Gold  &  lawful  money  reserve 

against  nett  deposit  liabilities 

Gold  res  ag  F.R.  nts  in  act  circ 


Dec.  14,  1 917. 


£ 
100,568,000 

78,762,000 
10,500.000 


it*9  930.000 

136,675,600 

3.542.0  o 


330  047,600 
10.029. goo 


340,076,800 
14?, 686, 200 
50.8x5.6-'0 


193,571,800 

10,754,800 

9,609  200 

J9b,tioo 


214,134.600 
6,398,800 
63  93I,2nQ 


Dec.  7,  19 17. 


£ 
100,131,200 

75.355-600 
10, <;  00,000 


185,980,800 

136,787,800 

3.497  o-^o 


320,271,600 
10.380,800 


336,661,400 

I37.3t^0i400 

38.1^6,400 


175  5i6,Boo 

9  819,600 

10,084  800 

i82,8o» 


195.624,000 

5,266,4ro 

62,114,400 


70,230,0^0 
107,400 
56 '.000 


625,110,800 


13.888000 
25.857,000 
309,806,000 

39  353,400 
2,856,400 


377,072,800 

230,677,000 

1,600,000 

1,073,000 


625,110.800 


61.7% 

650% 

60.8% 


67,380,800 
107.400 
593.600 


600.367.200 


13.009,600 
33.7'3.6oo 
287,434,800 

37.972.200 
3  1 '7.200 


362,237,800 

222,107,400 

1,6  0,000 

612.400 


600,367,200 


63.1% 

66.6% 
63.«% 


Dec.  15,  1916. 


£ 
51,283,600 

35,463,200 


86  751,800 
54,654,800 

308,600 

141,715,200 
1.58' .400 


14^,296,600 
7,549.600 
24  58^.601 


32,133,200 
8,529,600 
2,233  400 
2,239,000 


45.135,200 
9,517.200 


9,517,200 
84,000 

931.200 


1 98. 9^)4.200 


11,146  200 
5.752,400 

128,627,200 


134.379.600 
53.275,200 

163,200 


I98,96i.^'00 


695% 

71-7% 
103.2% 


Loans       

Reserve  held  in  own  Vaults . . 
Reserve  held  in  Fed,  Res.  Bk. 
Cash  in  own  Vaults     .. 
Reserve  held  in  Other  Depos. 
Nett  Demand  Deposits 
Nett  TimQ  Deposits    .. 

Circulation  

Bxc'>ft8  Lawful  Reserve 


Jan. 5,1918.  Dec.29,igi7.  Dec.22,i9i7.  Jan.  6, 1917. 


825,988,000 

3,990,000 

104,616,000 

22,466,000 

1,776,000 

720,240,000 

38.566,000 

6.810,000 

14,324,000  \ 


825,746,000 

4,038,000 

104,862,000 

21,846,000 

1,680,000 

702,458,000 

38,548,000 

6.806,000 

16,846,000 


834,670,000 

3,980,000 

104,572.00c 

21,714,000 

1,740,000 

702,038,000 

37,598,000 

6,802,000 

16,586.000 


£ 

668,806,000 
92,054,000 
36,648,000 

11,064.000 

670,686,000 

32,404,000 

5.778,000 

24,132,000 


~  Lawifaf  Reserve  consists  of    18%  of    the  Demand  Deposits  and  5%  ^    tEt 
Time  Deposits. 

NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES  (dollar  at  4s.)- 


Loans  ••       .. 
Specie 

Deposits 

Legal  Tenders 


Jan.  5,  1918. 


Dec.  39,  1917. 


£ 
163,090,000 
3,672,000 
168,514,000 

15,428,000 


Dec.  22,  1917.  Jan.  6, 1917 


£ 
164,770,000 
3.852,000 
167,976,000 

15,292.000 


£ 
i67,5684X>o 
4.384,000 
168,968,000 

i4,86S.ooo 


150,994,000 

12,432,00a 

161,464,000 

2  156,000 


BANK   OF   FRANCE    (25  francs  to  ttae  £). 


Gold  In  band 
Stiver  in  hand 
Bills  discounted 
Advances       .. 
Note  oiroulatioo 
Public  deposits 
Private  deposits 
Poreirn  Ritls., 


Jan.  10,  1918. 


132,816,320 
9,844,360 
38,328,680 

48.^07,240 

919,311,680 

6.260,560 

107,879,200 

191,960 


Jan.  3,  1918. 

£ 
132,73^360 
9,873,120 
41,929,920 
48.825,160 
911,564,920 
13.464,160 
111,068,840 
123.760 


Dec.  27, 1917. 

Jan.  II,  1917. 

£ 

£ 

132,576640 

136,237,160 

9,906,280 

u,495.88o 

36,478,480 

27,829.960 

48,476,960 

51.806,320 

893.471,960 

684,201,560 

10,074-360 

1,371,92a 

116,549,640 

88,726,900 

25 1 ,920 

224,240 

Proportion  between  bullion  and  circulation  24.38  per  cent.,agaiiisi  24.58  per 
cent,  last  weeli.  Advances  to  the  State  £500,000,000,  unchanged.  The  adjourned 
payments  of  drafts  in  Paris  on  account  of  the  moratorium.  £20,153,120,  secrease 
£80,760,  and  at  the  branches  £25,240,160,  decrease  £33,120. 

IMPERIAL  BANK  OF  tiEHMANY  (20  marks  to  the  £). 


Dec.  31,  1917 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances 
Note  oiroulatioo 
Deposits 


129,396,800 
65.239.500 
729,805,3  jO 
255,550 
573,387,450 
402,514,450 


Dec.  22, 1917. 


128,468,650 
57,840.550 
630,907, 8co 
315.550 
551,301,850 
331,752,500 


Dec.  15, 1917. 


£ 

127,804,200 
54,653,200 
614.123,450 
380,800 
538,666,400 
30'*. 802, 700 


Dec.  30, 1916. 


£ 
126,828,600 
21,104,450 
480,488,350 
487,000 
401,732,6^0 
288,210,300 


Clearing  House  return  during   December  £487,637,765,   against  £414,889,705 
in  November. 

BANK  OF  NORWAY. 


and 


Gold    .. 
Balaooe  abroad 
Foreign  Bills 
Gover'nt  Securities. . 
Discounts  Si  Loans. 
Notes  io  Circulation 
Deposits  at  notice.. 


Dec.  15, 1917. 


£ 
6,296,000 

4,676,000 

717,000 

20,686,000 

17,516,000 

11,311,00c 


Dec.  7.  1917. 


Nov.  30, 1917, 


£ 
6,332,000 

4,502,000 

701, »0 

20,437,000 
17,023,000 
11,454,000 


£ 

6,322,000 

4,388,000 
707,000 
20,235,000 
17,043,000 
11,093,000 


Dec.  IS,  X916. 


£ 
6,833.000 

4,896,coo 
767,000 
6,754iOOo 
I3.59*»ooo 
3,033,000 


NETHERLANDS  BANK  (12  Florins  to  the  £). 


Gold  and  Silver 
Bi      and  Advances 
Note  circulation 
Deposits. . 


Jan.  5,  igiS 


{ 

58,676,750 

16  149,333 

74,825,000 

3,603,416 


Dec. 29,1917 


£ 

58,771,666 
16,442,250 
74,486,730 
4,469,333 


Dec. 22,1917 


£ 

58,805,332 

14,143.^00 

72,452,834 

4,129.750 


Jan.  6,  1917. 


£ 

49.773  583 

"4.324.416 

62,8*5,833 

5.49', 833 


BANK    OF    SPAIN  (25  pesetas  to  ttae  £). 


Dec.  29, 1917 

Dec.  22, 1917 

Dec.  15, 1917 

Dec.  30, 1916 

Gold        

Silver 

FOHign  Bills 

Discount!!  ana  snort  Bills  . . 
Ttcasury  Aoooont,  So. 
Notes  in  Ciroulaliou  .. 
Current   Accounts,   Deposit!. 
Dlvldenos,  Interests,  &o.     . . 
GoTerument  Seouriiies 

78,672,630 

28,421.539 

3.575,663 

29,051,306 

26,801,704 

111,313,516 

38,046,135 

I,090,sj7 

2,854,481 

78,670,148 

28,589,309 

3,588,975 

29,196,801 

25,088,171 

110,216,963 

37.576,726 

956,048 

3.385,557 

78,657.315 

28,600,283 

3,598.457 

29,217,251 

25,068,786 

110.037,266 

37.224,616 

1,314,816 

3.889,506 

50,035,820 

29,641  660 

3,606,816 

26,582,500 

28,644.050 

9»  .403.340 

30,057,-64 

1.799.S04 

2.i7o,7i« 

STATE  BANK  OF  RUSSIA  (10  roubles  to  the  £). 

Oct.  29, 1917. 

Oct.  20, 1917. 

Oct.  13, 1917. 

Oct.  29,  1916. 

£ 

£ 

£ 

£ 

Notes  In  reserve 

15.780,000 

10,310,000 

11,600,000 

10,510,000 

Gold 

129,520,000 

129,560,000 

129,650,000 

155,880.000 

Gold  In  reserve  abroad 

230,860,000 

230,860,000 

230,860,000 

20^,500,000 

Loans  and  Discounts, 

including  Treasury 

Bonds 

1,718,120,000 

1,761,770,000 

1,607,840,000 

600,350.000 

Circulation  note  issue 

1,836,210,000 

1,785,890,000 

1,729,010,000 

784,490.000 

Deposits,      including 

Tireusury  deposits . 

345,550,000 

344.910,000 

344.170.000 

32,373,000 

BANK  OP   ITALY   (25  lire  to  the  £). 


Nov.  30.1917  Nov.  ao,  1917  Nov.  10,1917  Nov.  3QsX9>C 


Total  cash 
Inland  Bills 
Foreign  Bills     .. 
Advances  . .         . . 

Government  securities 
Circulation 
Deposits  at  notice 
Current  accounts 


46,332,2co 

33,507.760 

884,400 

23,505,720 

8,788,960 

253, S20  0»0 

:  31,894,120 

I    18.024,760 


£ 

43.990,800 

32,650,720 

884,040 

24,^84,160 

8,792,080 

249,420,640 

34,028,560 

i7,t'J.3CO 


45.405,560 

^ti,^7l,5  o 

883,640 

23,656,^20 

8,774,600 

I  239,434,880 

34,130,160 

15.634.540 


£ 

42,741.360 
19,431,160 

83).96o 
7,841,800 
8  981,320 
150,096,360 
16,703,200 
'3.»33.36o 


Januaky   12,  1918. 


XTbe  Jnvestors'  IRevtew. 


39 


SWISS  NATFONAL  BANK  (25  francs  to  ihe  £1. 


Gold  and  silver 

Bills 

Note  olroulation 
Current  and  deposit 
amo'into 


Dec.  7.  '9'7- 


£ 

16,134,448 
9,410,308 
24,765,424 

3.6oi.Q''o 


Nov.  30,  1917, 


£ 

l6,i76,"4 
9,278,536 
25,103,608 

^■gOO,J32 


Nov.  S3,  1917 


16,188,932 

9,267,452 

23,962.372 

4.076,568 


Dec.  7,  1916. 

14,970,756 
6,746,180 

i8,8ai,Sl!8 


4.70  1R8 


BANK    OP    SWEDEN. 


Deo.  15, 1917.  Dec.  8,  1917.  Dec.  i,  1917-  Dec.  16,  1916 


Gold    .. 

BalaDoe   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  .. 
OlscouDtsand  Loans 
Notes  in  circulation 
Deposits  at  notice  . . 


£ 
12,831,000 

6,934,000 

4,440,000 
14,200,000 
29,564,000 

9,562.000 


i2,sg;,ooo 
6,796,000 

6,381,000 
12,094,000 
29,321,000 

9,292,000 


£ 
12,577,000 

6,940,000 

6,^81,000 
10.608,000 

29,977. ijoo 
7,269.000 


£ 
10,152,000 

8,049,000 

3,531,000 
7,483,000 
21,478.000 
7,132,000 


LONDON  COURSE  OF  EXCHANGE. 

Usance. 

Jan.  8 

1918. 

Jan.  10,  1918. 

Sellers. 

Buyers 

Sellers. 

Buyers. 

Amsterdam  . .     . . 

Cable  transfers 

10.97 

11.05 

10.98 

11.03 

Three  months'  bills  . .     . . 

II. to 

11.20 

11.12 

II. 18 

Paris      

Cable  transfers 

27.20 

27.25 

27.18 

27.23 

Three  months' bills..     .. 

27.60 

27.65 

27.60 

27.65 

SwitzerJand..     .. 

Cable  transfers 

21.30 

21.45 

21.30 

21.45 

j^ 

Three  months' bills  . .     .. 

21.65 

21.85 

21.65 

21  85 

Petrograd     . .     . . 

Cable  transfers 

363 

375 

363 

,6» 

Genoa,  &c 

Cable  transfers 

4005 

40.25 

3965 

3985 

Spain     

Cable  transfers 

19.45 

19.55 

19-48 

19.53 

jj        

Three  months' bills..    .. 

57i 

58} 

571 

58i 

Lisbon  and  Oporto 

Cable  transfers 

2^ 

30I 

29i 

3O5 

Copenhagen..     .. 

Cable  transfers 

15.70 

15.90 

1550 

15-00 

Cfaristiania  . .     . . 

Cable  transfers 

■4  95 

15.15 

14.72 

14.82 

Stockholm    ..     .. 

Cable  transfers 

14.40 

14.50 

14.35 

1445 

FOREIGN    RATES    OF   EXCHANOE   ON    LONDON. 


Paris,  cheques 
Amsterdam,  cheques 
Italy,  sight 
Madrid,  sight., 
Lisbon,  sight  . . 
SwitZ'-rland,  sight 
Christiania,  siuht 
Stockholm,  siKht 
Copenhagen,  sight 
Petrograd,  sight 
Alexandria,  sight 
Bombay,  T.T. 
Calcutta,  T.T. 
Hong  Kong,  T.T. 
Shanghai,  T.T. 
SiuKapore,  T.T. 
Yokohaii  a.  T.T. 
New  York,  cable 
Buenos  Aires,  T.T. . 
Valparaiso,  90  days. 
Montevideo,  T.T.     .. 
Rio  de  Janeiro,  90  days 


Method  of 
Quoting. 


Francs  lo  £i 
Florins  to  £1 
Lire  to  jf  I  .. 
Pesetas  to  £1 
Kence  to  milreis 
Francs  to  £1 
Kroner  to  £1 
Kroner  to  £1 
Kroner  to  £i 
Roubles  to  £"ro 
Piastres  to  £i 
Sterling  to  rupee. . 
Sterling  to  rupee. . 
Sterling  to  dt.Ilar.. 
Sterling  io  tael 
Sterling  to  dollar, . 
Sterling  to  yen 
Dollars  to  ^i 
Pence  to  dollar 
Pence  to  peso 
Pence  to  dollar 
Pence  to  milreis 


Last 

s-s 

Week. 

0.   M 

Id 

23.224 

27.22* 
11.014 

12.107 

25.22i 

40.01 

25.224 

19.60 

53jd. 

Sojd. 

25224 

21.00 

18. '59 

14.80 

18..  59 

14.40 

18.159 

15-624 

94.57 

3674 

97J 

97* 

1/4 
1/4 

■(41  J 
1/4:4 

3/ 

— 

4/34 

— 

■2/4|i 

24.58d. 

4.86S 

4.76a 
52id 

47.58d. 

5ld. 

6<|d. 

I6d. 

J3§id' 

This 
Week. 


OPEN  MARKET  UISCOUNT 


Thirty  and  sixty  day  remitted 

Three  muuttit 

Pour  months  ,, 

Six  months  , 

Three  montbs  fine  iatand  bills 

Pour  monthf 

Six  montbs 


BANK  AND  DEPOSIT  RATES. 


Biak  of  ttngiand  minimum  dtsoount  rate 
,,  ,,         short  loan  rates  ,, 

Bankets'  rate  on  deposits  . .        . . 

Bill  brokers'  deposit  rate  (oall) 

„  7  and  14  days'  notice 

I  Current  rates  for  7  day  loans 
,.  for  call  loans 

N 
the 


Last  week.  This  week 
Per  cent.    Per  cent 

..    3ii-i         ii-H 

■  •  3)1— 4:fe      3H    4 

..  3«-4j^       3t?-4 

..  3M-4S     .   3iS— 4i 

..  44-5  4J-5 

..  4i-5        ..   4i— 5 

..  44-5       ..   4i-5 

Last  week  This  week 
Per  cent.    Per  cent. 


The  Week's    Stock   Markets. 


Nothing  of  very  much  importance  has  occurred  on 
the  Stock  Exchange  this  week,  but  on  the  whole  the 
tone  has  been  cheerful  to  a  degree  that  is  extremely 
encouraging,  especially  as  the  amount  of  business  pass- 
ing has  not  been  sufficient  to  create  any  great  enthu- 
siasm. However,  the  speeches  both  of  Mr.  Lloyd 
George  and  President  Wilson  seemed  to  create  a  very 
favourable  impression,  and  if  we  have  to  submit  to  a 
few  more  jointless  Sundays,  there  is  some  consolation 
in  knowing  that  rabbits,  even  at  los.  a  brace,  are  not 
obtainable  in  Berlin.  Anyhow,  it  is  satisfactory  to  be 
able  to  record  a  very  substantial  recovery  in  Russian 
securities,  and  for  that  we  must  give  the  credit  to  Presi- 
dent Wilson's  sympathetic  speech  with  regard  to  the 
very  trying  experiences  the  country  is  going  through, 
and  of  which  the  end  is  not  yet  in  sight.     With  the  re- 


Consols 

War  Loan    3*% 

4% 

>.  5%    S929-47.. 

„  4%,  19^9-42., 

India  3% 

»    3i% 

Austranan  5j%,  1920-23  ,. 

Canada  4%,  1940-60 

4i%.  »920-5 

N.S.W.4%,1933 

Argentine  4%,  1900 

Belgian  3% 

Brazil,  1913 

„       5%.  1914    

Chinese  1896  

,,       1912 ,... 

Egypt  Unified  4% 

Caledonian  defd 

Gt.  Central  pia 

„        ,,         dfd 

Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd.  .. 
London  Chatham  ord 

Canadian  Pacific   

E.  Indian  Guar.  4A  %  debs. 
Grand  Trunk  ord.    

Do.  ist  pf 

Do.  3rd  pf 

Antofagasta  dfd 

Brazil  Common 

B.  A.  &  Pacific 

B.  A.  Gt.  Southern 

B.  A.  Western    

Anglo-South  American   . . 

Bank  of  Australasia 

Bankof  N.S.  Wales 

Barclay  &  Co.  "  A  " 

Do.       "B" 

Capital  &  Counties   

Chartered  of  I  ndia    

Hongkong  &  Shanghai    , . 

Lloyds  

London  &  Provincial  .... 

London  &  Brazilian 

Armstrong,  Whitworth  .. 
Birmingham   Small  Arms 

Cammell-Laird 

Cargo  Fleet 

Dorman,  Long  

Associated  Cement 

Borax  dfd 

Bovril    

Brazil  Traction  

British  Amer.  Tobacco  pf. 

British  Aluminium 

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Keilner 

Coats 

Courtaulds 

Cunard 

Dennis  Bros 

Eastern  Telegraph   

ttastmans 

English  Sewing  Cotton  .. 
Angio-Egyptian  "B"  .... 

Baku  (los.) 

Burmah 

Lobitos 

Maikop  Pipeline   

Mexican  Eagle  pf 


1  Last 

1  This  i 

|Week|Week| 

85I 

5Si  « 

86 

93}, 

99. 

93  i 

ioi4 

101 

55i 

55  : 

64! 
qatx 

64i 

97  X 

81 
92 

8'* 

93 

81 

814 

67 

67 

61 

624 

70 
80 

'8^ 

92 

9« 

83 

83 

84 

Sj 

9 

9 

13* 

i3i 

6| 

36S 

36I 

38 

m 

86? 

m 

65* 

66 

60 

60 

9 

88 

160 

'^ih 

84 

84 

10 

98 

55, 

", 

22i 

2li 

130 

»3i 

5 

5 

40 

40 

74 

74* 

704 

71 

73 

7i 

114 

116 

3.5* 

35* 

7j 
ll| 

'i 

IIJ 

23 

24 

68* 

684 

84 

85 

25 

'>, 

■7i 

23I 

13 

41/6 

42/ 

52/ 

546 

6i 

6;; 

22/ 

22/ 

46/: 

46/ 

N.S.W.  44%5yr.bd« 

..      4i%.  »9«2-7 

M        5%,  l9»l-3 

II      5r3o.  1920*2  

New  Zealand  4%,  ig^    ., 

Queensland  4% : 

4i%.  1920-5    . 
Union  of  S.  Africa  44% 

1920-5     

Victoria  44%.  1920-5 

Westn.  Aus.4%    

French  War  Loan,  5%  . . 
Japan  44%  (ist),  1905   .... 

5%. '907 

Mexican  5%,  1899    , 

Russia  4   % 

,1      4j%,i909 

■  I      5%.  '906 

London  and  N.-W.     ..., 

London  and  S.-W.  dfd.  ., 

Do     red.  pf.  1914 

Metropolitan 

Do.       5%      pf.. 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastern 

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern 


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San   Paulo(Braziliai>).... 

United  of  Havana 

London  &  S.W 

London  City  &  Midland.. 
London  County  &  West'... 

London  J  oint  Stock 

Nat.  Prov.  otEng.(£io4  pd) 
Do.  (£12  pd) 

Parr's    

Standard  of  S.  A 

Union  Discount 

Union  &Smiths 


Kynochs  

Mond  Nickel  ord 

South  Durham  Steel 

Thornycroft    

Vickers 


3i 

36/3 

20/6 
45l 
18/6 
32/6 
31/6 

3k 

6A 

61 

4ftl 

35/6 

■5'4 

10/ 

56/ 

27/6 

1/9 

7i 

it 
64/31 


3l 
37/6 
20/6 

46I 
18/6 
33/3 
31/9 

^i 

3A 
6A 
6*1 
4i 
35/3 
151J 
9/ 

56/3 

27/6 

1/9 

78 

2^ 

3/ 

63/6X 


AIIagar2/- 

AnKlo-Java  Rub.  2/-     . 

Anglo-Mdiay  2/ 

Ayer  Kuning  £1 

Batang  Malarka  2/- 

Bekoh  2/- 

Brit.  N.  Borneo  Trust  f  I 

Bukit  Cloh2/-  

Bukit  Kajang  jfi 

Bukit  Mertajam  2/-   ... 
Bukit  Sembawang  2/-  .... 

Carey  Ignited  £1  

Ceylon  Para  2/- 

Chersonese 

Chevi  t  2/-   

Dalkeiih  2/- 

Eastern  Invest.  Trust  £1.. 

Grand  Central  f  1 

Gula  Kaluinpong£i 

Highlands  £1 

Java  Investment  £1 

Java  Para  £1  

Johore  Kubber  Lands  £1.. 

Kamunin    2/- 

Kinta  Kellas2/-  

Kuala  K..bu  2/-   

Labu  2/- 

Langen  Java  £1 

Linggi2/- 

London  Asiatic  2/- 

Malacca  £1 

Malayalain  £1 

Merlimau  2/-    

Padang  J  awa  2/- 

Pataling  2/- 

A  bbontiakoon  do/-) 

Bechuanaland  Exp 

Brakpan  

Broken  Hill  Prop.  (8/-)   .. 

Cam  &  Motor 

Central  Mining  (£12)  .... 

Chartered    

City  Deep      '. 

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (lo/-) 

De  Beers  did.  {£2  105.)  .. 

East  Rand   

Geduld 

Gov.  Areas  Mod     


3/3  I  3/4 
7/     I      7/3 

1413X  14/74 

50/  52;6 

5/,  5/ 

4/7J  4/-i 
16/  10/ 

5/li  5/lJ 

74/3  75/x 


4/9 
3/6 
46ilx 
10/ 
3/5 
6/3 
3/1 
27/3 

-yl 

«/3 

60/9X 

29/44 

32/6 

34/3 

4/4 

4/6 

3/3 
10/ 
42/6 
28/6X 
8/loJ 

54 
41/ 

5/6 

3/6 
44/ 

4/ii 

7/3 
5g 
53/ 
10/9 

6i 
3M 

■  4 
2,/ 
2^ 

'38 

5/6 
38/3 

3iS5 


4/9 
3^ 
46/x 
10/ 
3/7 

6/3 
3/1 
27/3 
27/104 
35/3 
61/X 

31/ 

32/6 

35/ 

4/4 

4/7 

3/3 

10/3 

45/ 

28/9X 

9/ 
58 

41/6 

5/8 

3/74 
46/ 

4/lJ 
7/3 
58 

55/3 

10/9 
6i 

15/ 

'% 

20/6 

2 

132 
5/9 

_i 


Fine  Cotton  Spinners  .... 

Forestal  Land 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay    

Imperial  Tobacco  'C  pf 

Lever  Bros.  "C"  pf 

Lyons.  J 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  &F 

P.  &0.dfd 

Royal  Mail  < 

Underground  Inc.  Bds. .. 

North  Caucasian 

Roumanian  Cons 

Royal  Dutch  (lOO  gulden) 

Shell 

Spies  (10/-) 

Ural  Caspian ^.. 

Perak  2/-   

Port  Dickson  2/-   

Rub.  Estates  Johore  £1.. 
Rub.  Estates  Krian  2/-. 

Rubber  Trust  £1 

Sampang  (Java)  a/-. . . 
.Sapumaikande  £1    ... 

Seaport  £1 

Selangor 

Sengat  2/- 

Seremban  £1 

Shelfordfl 

Sialang  £t    

Singapore  Para  2/-    ... 
Singapore  United  2/-    . 

Soeniber  Ajoe  2/- 

Stagbrook  £1 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  j^i  

Sungei  Kapar  2/-   

Sungei  Kruit  £1 

Taiping  2/- 

Tali  Ayer  £t  

Tandjoiig  ^i   

Pandjong  Malim£l... 

Tehran  £1  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdang  2/- . . . 
United  Sumatra  2/-  ... 

Val  d'Or  2/- 

Vallatnbrosa  2/- 

Way  Halim  1/8  pd.   ... 


Gt.  Boulder  (2/-)    

Kyshtim    

Mashonaland  Agency 
Meyer  &  Charlton    .. 

Modder  "B" 

Do.    Deep 

Mysore 

R<nd  Mines  (5/-)   .... 

Rio  Tinto(^5)   

Ru'iSo-A?ii  -tic 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep  


S/ 

4/3 

45/ 

4/2 

29/6 

2/7J 

27/ 

28/6 

35/6 

3/311 

44/ 

39'6 

70/ 

4/74 

3/44^ 

3/ 
3.1/6 

6/9 

9/6 
40,6 
11/3 
56/ 

4/4J 
37/9 
91/6 
3'/3 
66/ 
47/6 

2/9 
11,6 

8/9 
4/14 
24/ 

2/6 

13/1 
>4 
7/ 
58 
88 
7ft 
3 

3A 
64 

'A 
t 


m 


9/9 
51 

5l 

7/9 
'1^ 

8/ 
4/3 

45/ 

4/3 

29/9 

2/10 

27/ 

20.6 

35/ 

3/44" 

45/ 

39/6 

70/ 

4/74 

3/44  X 

3/'4 
33/6 
7/ 
9/C 
40/6 
11/44 
56/ 
4/4i 
37/9 
91/ 
31/9 
65/ 
47;  6 
2/9 
11/3 
8/9 
4/14 
24/ 
2/6 

13/x 
14 
7/ 

7i 

3 
3 
644 

% 


40 


Zbc  5nvc8tor6'  lieview. 


January  12,  1918. 


lease  of  the  January  dividends,  and  the  reduction  in 
money  rates,  a  better  demand  developed  for  gilt-c<lged 
securities,  and  Home  Rails  were  fairly  well  supported 
in  view  of  the  approach  of  the  dividend  period,  but 
there  were  also  tired  holders  anxious  to  take  advantage 
of  the  recent  improvement  to  realise.  The  success  of 
the  French  Treasury  bill  issue  helped  the  other  stocks 
of  our  Ally,  and  Brazilians  were  strong  on  the  harden- 
ing of  the  exchange.  Shipping  shares,  in  spite  of  the 
denial  of  amalgamation  rumours,  have  advanced  on  the 
belief  that  Blue-book  rates  are  to  be  revised  in  favour 
of  the  companies,  and  Cunards  were  particularly 
favoured  in  the  expectation  that  a  capital  reorganisa- 
tion scheme  will  provide  a  handsome  bonus  to  the  share- 
holders. Argentine  labour  troubles  —  probably 
fomented  by  German  money — have  been  a  thorn  in  the 
side  of  investors,  but  that  is  only  a  passing  phase,  and 
the  country  has  such  great  po.ssibilities  as  a  producer, 
both  of  bread  and  meat,  that  its  progress  cannot  be 
retarded  except  for  a  brief  period.  At  the  same  time, 
there  is  no  fundamental  improvement  in  the  situation 
anywhere,  and  we  would  not  encourage  undue  optimism 
with  regard  to  speculative  investments  of  any  kind. 


Business  in  the  Stock  markets  has  been  to  some  extent  helped 
by  the  reduction  in  money  rates,  but  except  for  some  improve- 
ment in  the  gilt-edged  section  at  one  end  and  the  more  specula- 
tive markets  at  the  other,  the  amount  of  transactions  has  not  been 
anything  much  to  boast  about.  Indeed,  the  daily  markings  have 
only  just  kept  around  the  3,000  level,  and  that  does  not  indicate 
much  enthusiasm  on  the  part  either  of  the  public  or  professional 
dealers.  Consols  have  been  exceptionally  good  in  the  gilt-edged 
division,  and  several  War  Loan  stocks  have  also  been  shifted  to 
a  moderate  extent,  but  towar'ds  the  close  the  tendency  was  rather 
inclined  to  flatness.  Colonials  also  improved  at  the  outset  on 
the  reduction  of  money  rates,  but  when  the  first  flutter  had 
subsided  there  was  scarcely  a  bargain  transacted.  In  the 
Foreign  market  the  most  prominent  incident  has  been  the  con- 
tinued strength  of  Russian  securities,  which  have  advanced 
almost  daily  a  point  or  more  at  a  time.  This  is  no  doubt  largely 
due  to  the  extremely  benevolent  attitude  adopted  by  President 
Wilson  with  regard  to  the  troubles  that  the  Revolutionary 
Government  has  to  face  and  overcome,  and  although  it  may, 
and  probably  will,  take  a  long  time  for  the  country  to  settle 
down  to  stable  government,  it  will  undoubtedly  help  if  the  better 
elements  are  heartily  supported  by  the  Allies.  Brazilian  stocks 
advanced  a  point  or  more,  and  Mexicans,  Peruvians,  and 
Uruguays  also  showed  .strength,  but  Colombians  and  Guatemalas 
both  receded.  French  issues  were  good  on  the  success  of  the 
Trea,siury  bill   issue. 

Home  Railways  after  their  recent  smart  advance  were  rather 
inclined  to  give  way,  and  fractional  declines  were  fairly 
numerous  throughout  the  list.  After  some  recovery  on  re- 
purchases and  buying  in  view  of  the  forthcoming  dividends 
the  tone  again  became  irregular,  and  the  close  was  rather  dull. 
American  Railroads  at  the  outset  were  rather  good,  with  Chesa- 
peakes  most  prominent,  but  subsequently  prices  gave  way  prac- 
tically all  round,  New  York,  Ontario,  Denver,  and  Erie  being 
prominently  weak.  Mexican  Nationals,  however,  .-howed  up  to 
some  advantage.  International  Mercantile  Marine,  after  drop- 
ping 2  to  3  points,  recovered  smartly,  and  closed  with  a  sub- 
stantial gain.  Canadian  Pacifies  have  scarcely  moved ;  in  fact, 
the  market  has  almost  dried  up,  but  Trunks  have  been  per- 
sistently weak  and  have  dropped  back  step  by  step  almost  daily. 
Mexicans,  on  the  other  hand,  have  shown  wonderful  strength, 
and  it  looks  as  though  the  country  might  settle  down  sooner  than 
at  one  time  appeared  to  be  po.ssible.  Argentine  Railways  have 
been  irregular,  but,  on  the  whole,  the  tendency  has  been  de- 
cidedly weak  owing  to  a  fresh  outbreak  of  the  labour  difficulties 
which  we  had  all  hoped  were  settled  long  since.  Strikes  have 
again  broken  out,  and  according  to  the  latest  advices  there  is 
reason  to  fear  that  damage  is  again  being  done  to  the  property 
of  the  railways. 

Bank  shares  have  been  in  better  favour  owing  to  the  excel- 
lent reports  now  being  issued,  and  many  of  the  leading  issues 
have  gained  a  substantial  fraction,  while  among  the  foreign 
banks,  Hongkoaig  and  Shanghai  has  been  prominent  with  an 
advance  of  i  point.  Breweries  continue  to  forge  ahead  wonder- 
fully in  face  of  the  numerous  restrictions  to  which  they  are 
liable,  and  AUsopps  have  made  great  progress  on  the  improved 
outlook  for  the  company.  City  of  London  Brewery  also  ad- 
vanced smartly.  The  Egyptian  section  has  been  very  firm, 
and  among  Catering  shares  Liptons  have  been  well  supported, 
while  Lyons  and  Slaters  have  been  rather  flat.  Among  Iron 
and  Steel  shares,  Otis  advanced  several  points,  and  many 
others  have  gained  a  fraction,  but  the  tone  was  not  so  confi- 
dent as  these  movements  would  seem  to  indicate.  Shipping 
shares  have  been  remarkably  strong  on  the  belief  that  Blue- 
book  rates  will  be  revised  in  favour  of  the  comoanies.  and  P. 
and  O.,  Royal  Mail,  Cunard,  and  one  or  two  others  have  done 
remarkably  well.  Indo-China  dropped  t,  points  on  the  denial 
of  rumours  of  amalgamation,  but  thev  picked  up  most  of  the 
loss.  Among  Textiles,  Coats,  Courtaulds,  Fine  Spinners,  and 
Bradford  Dyers  all  showed  a  very  firm  tendency,  and  a  fair 
amount  of  business   was   transacted   in   them.     Among   Miscel- 


laneous ItKiustrials,  Alby  Carbides  were  conspicuous,  first  with 
a  sharp  advance  and  later  with  an  equally  heavy  decline. 
Cements,  Borax  Consolidated,  and  Dunlop  Rubbers  wert 
strong,   but  Castner-Kellner   fell  a  considerable  fraction. 

Oil  shares  have  not  attracted  much  interest,  and  the  move- 
ments have  been  very  irregular,  but  "  Shells,"  Mexicans,  and 
a  few  others  were  in  demand  and  made  some  headway.  Rubber 
shares  have  been  well  supported,  in  spite  of  the  fact  that  the 
price  of  the  raw  material  has  once  more  fallen  back  consider- 
ably below  the  half-crown  mark.  The  better-class  shares  were 
mostly  favoured,  and  as  the  supply  is  extremely  limited,  while 
the  demand  is  fairly  persistent,  it  is  not  surprising  that  prices 
moved  more  than  the  actual  amount  of  business  passing  would 
ordinarily  justify. 


LONDON    PRODUCE   MARKETS. 

A  quiet  and  rather  featureless  state  of  affairs  prevailed  in  most 
direciions,  but  price  changes  were  not  of  much  importance. 

Sdgar. — Market  ruled  unchanged. 

Coffee. — A  steady  tone  characterised  the  market,  particnlarly 
with  regard  to  the  better  liquoring  descriptions.  Supplies  in 
auction  were  on  a  fa'r  scale,  and  commanded  good  support.    Some 

CURRENT    PRICES    OP    CHIEF    ARTICLES. 

WEEK  ENDING    JANUARY  ii,  1918. 


tagar~per  cwt,, 
duty  14/,  9^*^ 
polarisation 

Tal*^'**  Cubes 

Crushed , 

Granulated  ..     .. 

Lyle's  granulated 

Foreign'  granu- 
tatpo.hrst  niarkv 
f.o.b.,  spot 

GermanCubel.o.b 

Freocb  Cube 

prompt 

Crystallised,  VVesi 
India 

Beet,    88%    f.o.t 

T«a— per  Ib..dut> 

I/-  lb. 
[udtan  Pekoe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe    Soiiobon^ 
Ceylon  Pekoe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe  Soiiohoiie 

Ooooa  —per  cwt. 

dutj  61.  per  lb. 
Trinidad — perowi 
Grenada  . .  , . 
West  Africa..  . 
Ceylon  Plantailoi 
Guayaquil  Ariba. 
Oo(r«e — per  owi. 
duty  42/- per  cwt. 
Kast  India    ..     . . 

Jamaica 

Costa  Kloa  .,  .. 
Provlsloni— 

Butter,  per  cwi. 
Australian  iinest 
Argentine     . .     . . 
liinu  Ciuanieries 
Dutch  ditio  .. 
Russian  finest     .. 
Paris  baskets 
L>anish  finest 
Brittany      rolls  — 

doz.  lb 

Bacon — per  cwt. 

Uisb      

Continental..  .. 
Canadian  ..  .. 
American  . .  . . 
Hams — per  owt. 

Irish       

Canadian  ..  .. 
American      ..     .. 

Obeasa — per  owt. 
Dutch 

Cauadlan     .. 
English  Cheddar 
Wills  loaf     ..     .. 
New  Zealand 

filee— per  cwt. 

Japan     

Rangoon  3  stars  . . 

BW«— per  ISO. 

English 

Irish      

Danish 

Spelter— 

G.O.B.  as  to  posi- 
tion      

PiOttf— per  sack. 

Country  Straight 

Runs  ex  Mill .. 


Last 

Week. 


Thi« 
Week. 


C    8.  d 


2  13  9 
2  13  9 
269 
269 


nom. 
nom. 


269 
Dom. 


s.  d.  s  d 


ii-i 
I  0-2 

I  C-2 
I  3-2 

II-I 
IlJ-I 
1  O-I 
I  0-1 
1    0-2 

II-I 


d.      d 

37  o  -99  o 
■^50  98  o 
68  0  -77  (^ 
7  o  -94  o 
105/-109/ 


£  ..    d. 


a  13    9 

2  13  9 
269 
269 


nom. 
nom. 


269 
nom. 

<.d.  8.  d 

nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 

d.  s  d 
87  o-  99  ( 

85  a-  98  0 
68  o-  77  0 
77  0-  94  0 
105/-109/ 


97  0-116 
77  0   120  0 
97  o  116  o 


252/ 
252/ 
252/ 
232/ 
nom. 
nam. 
nom. 

nom. 


172/ 
172/ 

I72/-Itf0/ 
203? 

:62/-i65/ 

I 25/- 165/ 

129/6-160/- 
nom. 
142/ 
nom. 
noKt. 

s.    d. 
com. 
26    3 


40  0-43  o 
18  0-40  0 
39  0-41  0 


44/3 


097 


o  116  o 
77  0-120  0 
97  o  116  0 


252/ 
252/ 

nom. 

nom. 

nom. 

nom 

nom 

nom. 


172I 

172/ 

172/ 

1 72/- 180 

203/ 
162/-165/ 
25/-165/ 

1 29/6- 16  o/- 
nom. 
142/ 
nom. 
nom. 

•.    d. 
nom. 
26    3 


♦3  0-45  o 

40  0-41  o 

nom. 


£54-£50 
44/3 


Wool— per  lb. 

A  u  s  trallan 
Scourer)  Merinf 
Scoured  Cr'ssbr'd 
Greasy  Merino  . . 
Greasy  Crossbred 
Ne  w  Zealand* 
(scotired)  Merino 
Greasy  Crossbred 
Cape  snow  wbitt 

Indlarubberp.lb 

Plantation,      Spot 

Crepe 


Coal— per  inn 

Ourham,  best  . . 

Secon<is        ,,  . . 
East  Hartlepool. . 

Seconds       ..  .- 
Steams,  best 

Seconds       ..  . • 

Lead— per  ton. 
Knglish  Pig..     .. 
I'oreign  so(t..     .. 

Qutckillver— per 

bottle  tirsthaud 

Tin— per  ton 

(English  Ingots 

Do.    bars 
Standard  cash     . . 
f   D  Flates.per  box 
Copper — per  ton. 
bnglish,     Tough. 

per  ton 
Liest  Selected     . 

Sdects 

Standard      ..     . . 
Jute— per  too. 
Native    tirsts    for 
sbipment 

Linseed. per  ton.. 
Rape,  rebned 

,,  crude  .... 
Coit'n  Seeu.cru'f 
Ditto,  cetined  .. 
Petroleum  Oil.pei 

8  lbs. 
Water  White  .. 
Utl  Seeds, Linses- 
Calcutta— pel  ton 
Spot 
Rape     


Iron — pel  ton 
Cleveland  Cash  .. 
Tobacco  —  dut), 

uutnanufacturei 

7/4  to  6/0   per  lb. 
Maryiaud  A  Omo. 

pcc  lb.  bind 
Vitgiuialeai. 
Kentucky  leaf    .. 

Latakia 

Kavaoa..     ..     . 

Vlanila 

Cigars,  duty   toft 

per  lb. 

Timber— Wood. 

Fitch  I  ine    ..     .. 
Indian    leaK 

Turpentine— 

American  Spot  . . 

Copra— per  ton 

Matabai        . .     . . 

Cey  on 

F.M.S.  Stneapore 
F.M.    Straits 


Last  This 

Week.        Week. 


f  «.  d. 

nom. 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


52 


Dom. 
nom 
nom 
nom 

J2      6 

S9    6 

I     •   "> 

nom. 


f  182-283 

t383-284 

nom. 


Bom 
fiic)-£n3 

£■'7 
^iio-lioj 


£58-f63 
/"71 
f66 
£60 

£67-f95 


'Irh 

I/8J 


S9  'S 
£29-10^30 


notn 
0  8— a 

0  7 — 0 
a  0—5 

1  6-4    6 
nom. 

2/  upds. 


300/ — 400 
iHol—yoal 


i« 


46  o 
46  o 
45  "> 
45  >o 


£    t.  d. 

nom. 
nom. 
nom. 
Dom. 

nom. 
aom. 
nom. 


«  *i 


nom. 
nom. 
nom. 

J»« 

29  6 

r  ».  ». 

nom. 
f29l-£28J 

nom. 


£300 

f-95 
nom. 


nom. 

flIQ-£l23 
£M7    , 

£110-110) 


fS8-f63 

f7I 
it 

Cb7-C9i 

i'7i 
1/84 


29  15    o 
fjg-iofso 


nom. 
o  8  -2     I 
o  7  -O  II 

2  "  -5    0 

16-66 

nom. 

3/  upds. 


joo(—  400/ 
380;— 700/ 

124/ 


46  o 
46  o 
45  :o 
45  'o 


fair  to  fine  bold  Nairobi,  sold,  96s.  6d.  to  iios. ;  fine  bold  colory 
Costa  Rica,  ii6s.  ;  peaberry,  144s.  6d.     Brazilian  qualities  quiet. 

Cocoa.— Market  generally  unaltered  in  value,  but  trade  slow. 

Spice. — Pepper  slow,    unaltered.      Fair    black    Singapore,  on 


January  12,  1918. 


TTbe  Jnvestors'  "Keview. 


41 


II 


I 


spot,  IS.  2jd.  ;  Tellicherry,  is.  46.  ;  and  Muntok,  is.  7Sd.  Cloves 
quiet.  Fajr  Zanzibar,  spot,  sold,  is.  8d.  Tapioca  quiet,  but  fully 
steady.  Fair  flake,  spot,  sellers,  yd.  ;  fair  Penang  seed  pearl,  Cjs.  ; 
ditto  medium,  65s. ;  and  fair  small  sago,  65s. 

Rice  in  good  demand.  Beans  and  peas  unaltered,  with  fair 
support  accorded. 

Hemp. — Ea«t  India  grades,  also  Chinese,  move  off  slowly. 

Shellac  again  dearer,  with  few  sellers.  Fair  free  second 
orange,  spot,  sold,  365s.  ;  March,  370s.  ;  May,  360s. 

Gambier. — Market  dull.     Afloat,  buyers,  58s.,  ex  quay,  London. 

Rubber  quiet  and  easier,  but  steady  later.  Plantation,  spot, 
crepe,  sold,  2S.  jjd.  to  2s.  sd. :  April-June,  2S.  6Jd. ;  July-Decem- 
ber, 2s.  7.Jd.  Standard  ribbed  smoked  sheet,  spot,  sold,  2s.  5d.  to 
2s.  4Jd.  Fine  hard  Para,  spot,  quoted,  2s.  8|d. ;  soft  fine,  2s.  4d.  ; 
ball,  IS.  8d. 

Corn  (Mark  Lane). — Steadiness  continues  to  prevail  in  all  sections 
of  the  market,  business  being  quiet,  and  confined  mainly  to  No.  i 
and  2  Manitoba  wheat  at  8is.  6d.  and  803.  respectively.  Australian 
quoted  at  8is.  6d.  Flour  ;  Country  straight  runs,  44s.  3d.  per  sack, 
ex  mill ;  Japanese,  78s.  Barley  ;  English,  62s.  gd.  per  qr.  Maize 
remains  nominal.  Oats  :  American  white  clipped  No.  2  quoted  at 
60s.  6d.,  landed  ;  English,  45s.  3d. 

Cotton  (from  our  Manchester  correspondent}. — The  market 
during  the  past  week  has  been  very  quiet,  and  the  further  upward 
movement  in  prices  seems  to  have  had  no  effect  whatever  upon  the 
attitude  of  buyers.  Strong  bullish  advices  have  been  received 
from  the  raw  material  markets,  especially  New  York,  and  fresh  high 
records  have  been  established.  Although  in  many  respects  lower 
prices  seem  to  be  a  long  way  off,  traders  are  getting  increasingly 
nervous  as  to  doing  business  on  a  large  scale  at  current  rates.  It  is 
fully  realised  at  some  future  date  prices  will  have  to  be  readjusted, 
and  the  slump  in  values  is  bound  to  cause  trouble.  Only  retail  sales 
have  occurred  in  piece  goods  for  India,  and  there  are  complaints 
that  the  selling  basis  in  the  bazaars  abroad  is  very  much  below  the 
level  of  prices  ruling  in  Manchester.  A  few  more  offers  have  been 
mentioned  for  China  in  staple  makes,  but  very  little  has  been 
done.  Buyers  for  the  minor  outlets  East  and  West  have  displayed 
no  life  whatever.  Some  useful  orders  have  been  booked  for 
the  home  trade  in  fancies  and  specialities.  The  demand  in 
heavy  materials  for  the  war  is  constant,  but  many  makers  are 
now  so  deeply  sold  the  question  of  delivery  is  not  easily  settled 
when  fresh  contracts  are  under  consideration.  Prices  in  American 
yarns  have  been  put  up  very  stiffly,  but  the  response  from  buyers 
has  been  very  poor,  there  being  a  limited  turnover  in  all  quarters. 
Export  yarns  have  attracted  very  little  attention.  No  free  move- 
ment can  be  recorded  in  Egyptian  spinnings,  but  late  rates  are  well 
held. 


Banking    Dividends. 

We  .shall  as  usual  deal  more  fully  with  the  banking 
results  of  the  past  year  when  the  reports  are  available, 
but  for  the  present  it  may  be  useful  to  give  a  short 
summary  of  the  principal  figures  so  far  announced.  The 
following  table  shows  the  dividends  for  the  past  com- 
plete year  and  the  special  appropriations  and  amounts 
carried  forward  as  oompared  with  igi6  : — 


Oiv.  % 
1917. 

Depreciation.  &c. 

Carry  forward. 

IQ17. 

1916. 

1917. 

191b. 

Barclay  and  Co,  "  A  "    

Do.            "B"     

Bradford  District 

10   ) 
§20  1 

14 

*i6 
18 

Uo 

JO 

19 

"ll 

£ 
430,000 

25,000 

35,000 

10,000 

500,000 

570,000 

220,000 

150,000 

160,000 

50,000 

30,000 

12,000 

200,000 

5.000 

120,000 

£ 

500,000 

40,000 
110,000 

25,000 
632,500 
419,000 
271,600 
250,000 
150,000 
180,000 
250,000 

400,000 
30,000 
loo.eoo 

£ 
186,370 

38,080 
204.070 

58,  TOO 
733.800 
184,600 
125,000 

53.350 

54-390 
139,910 
384,730 

23,600 
209,300 

40,450 

20.810 

£ 
120,940 

28,870 

87,290 

26,600 

243,540 

182,200 

50,300 

42,570 

55.480 

102,140 

184,180 

17,400 

82,, '140 

25,690 

17.900 

■Capital  and  Coimiies 

.Lancashire  and  Yorkshire  .. 
London  City  and  Midland  . . 
Lon.  County  &  Westminster 

London  Joint  Stock  

London  and  Provincial 

London  and  South- Western 
Manchester  and  Liverpool  .. 
Parr's 

Sheffield 

Union  of  Manchester    

Williams  Deacon       

£2t 

14 

*  Plus  bonus  of  2S.  8d.      t  Against  12^  %,  tax  free.      I  Against  18  %. 
I  II  Against  18  %.      §  Against  17J  %. 

On  this  occasion  there  has  been  little  need  to  provide 
for  depreciation  of  investments,  but  fairly  liberal  alloca- 
tions have  been  made  to  reserves  for  contingencies  and 
in  reduction  of  premises,  while  in  rrost  cases  con- 
siderably larger  amounts  are  carried  forward.  In  five 
instances  distributions  have  been  raised,  but  elsewhere 
shareholders  have  to  be  content  with  the  same  dividends 
as  were  paid  for  1916.  Evidently  business  all  round 
has  been  extremely  prosperous,  but  we  are  glad  that  a 
conservative  policy  generally  has  been  adopted,  and  an 
already  strong  position,  further  buttres.sed.  There  will 
be  difiicult  problems  to  face  after  the  war,  and  the 
banks  will  require  an  unusually  large  proportion  ol^ 
t their  resources  in  as  liquid  a  form  as  possible. 

As  an  illustration  of  the  way  profits  have  increased, 
fwe  may  mention  that  the  London  and  Provincial  raised 
lits  gross  income  by  ;^i75,ooo  to  ;^i,37o,ooo,  but  ex- 
fpenses  were  ;^70,ooo  higher,  and  interest,  &c.,  required 
|ahout   ^100,000   more.       .'Vfter  placing  ;^i5o,ooo    to 


a  contingencies  account,  as  against  a  similar 
amount  to  reserve  for  depreciation  last  year,  the  divi- 
dend of  19  per  cent,  is  repeated,  and  ;^^i  1,000  more  is 
carried  forward.  The  London  and  South-Western  has 
obtained  an  increase  of  over  ;^8,ooo,ooo  im  its  current 
and  deposit  accounts,  and,  after  again  paying  a  divi- 
dend of  17  per  cent,  for  the  year,  ;^i6o,ooo  is  set 
aside  for  contingencies,  and  the  amount  carried  for- 
ward is  practically  the  same  at  ^^'54,400.  Glyn,  Mills,. 
Currie  and  Co.  show  an  increase  of  ;£."2,70o,ooo  in  cur- 
rent accounts  and  of  ;^2, 080,000  in  deposit  accounts, 
the  total  being  ;^24, 780,000,  while  cash  has  risen 
j^8oo,ooo  to  ;^'4,65o,ooo,  and  money  at  call  ;^2, 100,000 
to  ;^8, 120,000.  Investments  are  up  ;^i,7oo,ooo  at 
;^7,364,ooo,  and  the  balance-sheet  totals  at 
^26,415,000,  an  increase  of  just  under  ;^5,ooo,ooo. 
At  all  points  everything  looks  as  healthy  as  could  be 
desired. 


American  Business  Notes. 


Quite  unusual  though  it  be,  in  modern  times  at  least, 
to  take  a  great  lawyer  from  the  judicial  bench  and  turn 
him  into  an  ambassador,  we  think  it  was  well  worth 
while  for  the  Government  to  disregard  precedent  and 
put  Earl  Reading  in  the  position  of  Special  Ambassa- 
dor, or  High  Commissioner  to  the  Government  of 
Washington.  We  know  of  no  other  public  man  who 
has  equal  qualifications  of  mind  and  manners  for  a 
post  of  this  supreme  importance.  At  the  bar  he  was 
the  leading  commercial  lawyer  of  his  day.  and  since 
he  went  to  the  bench  he  has  distinguished  himself  by 
the  lucidity  and  grasp  of  his  judgments,  but  it  is  in 
the  counsels  in  finance  which  he  has  rendered  to  his 
country  throughout  all  the  period  of  the  war,  both 
here  and  during  his  frequent  visits  to  America,  that 
Lord  Reading  has  above  all  established  his  supremacy. 
We  can  well  believe  that  he  is  a  persona  grata  in 
America,  and  have  no  doubt  that  he  will  fill  the  ex- 
tremely delicate  part  he  has  to  play  with  the  highest 
efficiency  in  the  strenuous  times  at  hand. 

One  may  guess  to  some  extent  how  difficult  Lord 
Reading's  post  will  be  in  regard  to  finance  alone  by 
a  figure  in  the  summary  of  Mr.  Secretary  McAdoo's 
war  budgets.  In  the  appropriations  set  down  for  the 
year  ended  June  30  next,  Mr.  McAdoo  has  entered 
$7,000,000,000  as  money  laid  out  on  "  buying  the 
securities  of  foreign  Governments."  That  is  to  say, 
this  sum  of  more  than  ;^  1,400,000,000  will  have  been 
lent  during  the  current  fiscal  year  to  belligerents  abroad, 
and  our  share  of  the  debt  already,  if  we  mistake  not, 
exceeds  ;^5oo,ooo,ooo.  Will  it  not  be  a  work  of  ex- 
treme skill  and  perspicacity  in  finance  to  arrange  for 
the  carrying,  and,  perhaps,  for  the  gradual  liquidation 
of  this  debt?  And  that  is  but  one  of  the  fields  in  which 
our  High  Commissioner  will  have  to  labour  not  merely 
as  an  expert,  but  as  a  man  of  large  heart  and  of  en- 
lightened and  open  mind. 

The  votes  obtained  by  Mr.  McAdoo  for  the  current 
year  ended  June  30  next,  it  may  be  well  to  reiterate — 
excluding  this  ;£' 1,400, 000,000  lent  to  the  Allies  in 
Europe— aggregate  ;£,"2, 546, ooo',0'00,  or  $11,728,212,000^ 
For  the  coming  fiscal  year  ended  June  30,  1919,  the 
total  estimated  expenditure,  exclusive  of  sinking  fund 
requirements,  is  estimated  at  upwards  of 
;^2, 670,000, 000.  This  is  higher  than  the  current 
year's,  but  if  we  take  into  account  the  money  lent  it 
is  considerably  less.  To  this  extent  it  seems  rather 
an  illusory  presentment,  because,  should  the  war  go  on 
into  1919,  there  can  be  no  doubt  at  all  that  large 
additional  amounts  will  have  to  be  lent  by  the  Wash- 
ington Government  to  the  Allies  in  Europe.  As  it 
stands,  however,  the  coming  year's  expenditure  is  fore- 
cast to  be  about  $5,380,000,000  less  than  the  current 
year's.  In  the  War  Department,  however,  the  ex- 
penditure is  put  much  higher  at  $10,102,599,000, 
against  $7,526,338,000'  in  the  current  year.  The  navy, 
on  the  other  hand,  is  put  down  for  $1,047,914,000  in 
1919,  as  against  $1,596,936,000,  the  "  appropriation  " 
for  the  current  year. 


42 


XTbe  Jnvestors'  IReview. 


January  12,  1918. 


President  Wilson's  second  address  to  Congress  on 
our  war  alms  and  peace  conditions  runs  much  on  the 
lines  expected,  and  harmonises  pretty  fully  with  Mr. 
George's  speech  of  last  Saturday.  But  the  President 
is,  on  the  whole,  more  precise,  and  defines  the  Allied 
essentials  to  peace  with  a  minuteness  Germany  would 
do  well  to  take  note  of,  and  try  to  have  the  honesty 
to  imitate.  What  the  Allies  mean  to  do  in  regard  to 
the  oppressed  nationalities  of  Europe  and  Asia  Minor  is 
put  beyond  any  chance  of  m'sunderstanding.  In  only 
one  particular  do  we  regret  want  of  grasp  of  the 
meaning  of  history  in  the  President's  language,  and 
that  is  in  his  reference  to  Turkey.  He  errs  there,  as 
the  English  Prime  Minister  erred,  when  he  talks  of 
the  "Turkish  portions  "  of  the  present  Ottoman  Em- 
pire being  assured  "a  secured  sovereignty."  Why 
cannot  statesmen  sometimes  read  a  little  history?  A 
"secured  sovereignty"  for  the  Turk  is  something  un- 
thinkable in  practical  politics.  Such  a  state  would 
require  a  permanent  army  to  keep  it  "  secure,"  or  to 
restrain  the  marauding  instincts  of  its  nomads. 
Who  will  furnish  and  pay  for  that  army  ? 
E'"or  the  rest,  the  address  was  admirable  in  its 
precision  and  not  least  in  its  gentle  handling 
of  the  forlorn  Russian  jjeople.  Well,  also,  might 
Dr.  Wilson  point  out  that  while  the  Allies  were 
always  definite  enough,  and  made  no  attempt  to  gloss 
over  or  confuse  their  aims  in  the  war,  the  Germans 
were  always  indefinite,  their  proposals  full  of  snares 
and  ambiguities,  of  tortuosities  of  phrase  and  false 
bonhommie,  and  in  demanding  frankness  on  their  part 
he  skilfully  placed  the  cunning  duplicity  of  their  policy 
in  high  relief.  Will  any  good  be  done  by  plain 
speaking?  Not  an  atom,  probably.  The  baffled 
"  world-subduer  "  will  grow  ever  more  foxy,  ever  more 
ravingly  outrageous  in  his  claims  and  assertions  the 
nearer  he  comes  to  his  final  discomfiture.  Just  now 
he  is  being  encouraged  to  do  his  maddest  by  the  effects 
he  sees  his  extravagances  produce  among  the  politi- 
cians and  people  of  Allied  countries. 

It  is  only  18  years  old,  but  so  powerful  has  the  United 
Fruit  Co.  of  Boston  become,  so  far-stretching  is  its  hold 
over  the  fruit  supply,  not  merely  of  the  United  States, 
but  of  the   United  Kingdom,  and,  indeed,  of  Europe, 
that  its  report  i.s  well  worth  notice.     It  covers  the  year 
ended  September  30  last,  and  tells  us  that  the  nett  earn- 
ings from  bananas  and  miscellaneous  tropical  products, 
including  profits   from    carriage   and    from  dealing   ini 
merchandise,    &c.,    was    $14,182,000.        In    addition, 
$3,410,000  nett  came  from  the  company's  sugar  busi- 
ness   in    Cuba,    giving    it    a    total    clear    income    of 
$17,592,000,  and,  after  paying  interest  and  taxes,  and 
giving  8  per  cent,  dividends  in  all  to  the  shareholders, 
there  was  a  surplus  of  $9,135,000,  which,  added  to  the 
previous       accumulations,        gave        the        company 
$30,702,000  as  the  total  accumulation  of  undistributed 
profits.     From  this,  however,  $5,000,000  is  set  aside  as 
reserve    for   emergencies   and  $504,000    placed    to  de- 
preciation, thus  bringing  down  the  balance  carried  for- 
ward  to  $25,198,000,    a   quite  comfortable    sum.       A 
satisfactorily  severe  method  of  calculating  depreciation 
is  adhered  to,   and  the   amount  demanded  by   it    last 
year    was    $4,861,000   on    plantations,  railways,    and 
steamships.      This  was  included   in   the    working    ex- 
penses.     In  dealing  with   unforeseen  losses  the  com- 
pany always  writes  them  off  when   they  occur.     It    is 
paying  off  its  various  debenture  debts,  and  last  year  re- 
deemed $2,114,000,  a  sum  which  included   $825,000  of 
the  Fruit  Co. 's  own  4^  per  cent,  sinking  fund  deben- 
tures  and   $993,000  of   the   Elders  and    Fyffes,    Ltd., 
debentures,   together  with  smaller  sums  in   other  de- 
pendent companies'    mortgages.     The  company  is    a 
large  owner  of  steamships,  besides  a  great  producer  of 
bananas  and   sugar.     Its  steamship  fleet,   owned    and 
chartered,  numbers  now  61,  with  a  total  gross  capacity 
of  218,454  tons.     Of  this  total  14  steamers  are  British, 
with  a  gross  tonnage  capacity  of  70,853   tons.       The 
company  owns  the  above-named  British  steamship  com- 
pany.   Elders   and   Fyffes,    Ltd.,    and   has,  besides,  24 
American  vessels  of  its  owti  of  a  capacity  of  113,183 
ton§,  and  has,  over  and  above,  chartered  23  vessels  be- 


longing to  other  com.panies,  whose  gross  capacity  is 
34,418  tons.  It  is  thus  a  very  extensive  and  powerful 
producer  and  distributor  of  human  food.  Its  lands  ex- 
tend to  1,161,000  acres,  of  which  240,500  are  in  Costa 
Rica,  169,000  in  Cuba,  140,000  in  Guatemala,  192,000 
in  Honduras,  and  .so  on.  The  book  cost  of  these  lands, 
with  their  plants  and  equipment,  is  $51,912,000.  This 
includes  railways  valued  at  $13,368,000,  and  it  is  a  de- 
creasing value,  in.  .spite  of  continual  improvements  and 
expansion,  thanks  to  the  systematic  writings  down.  For 
1914,  for  example,  the  total  value  of  these  properties, 
including  merchandise,  materials  on  hand,  sugar  mill, 
tramways,  telephones,  live  stock,  houses  and  build- 
ings, &c.,  was  $54,092,000.  The  total  of  the  com- 
pany's balance-sheet  was,  at  December  30  last, 
$109,861,000,  or  about  ;^22,ooo,ooo,  of  which 
$48,792,000  was  share  capital  in  the  hands  of  the 
public. 


The  Week  in  Minos. 


Business  in  mining  shares  has  been  more  active  this  week, 
and  the  tone  distinctly  firmer.  Some  of  the  low-priced  South 
Africans  have  been  galvanised  into  life  on  the  strength  of  re- 
ports that  the  Van  Kyn  reef  has  been  provisionally  identified 
on  the  South-Eastern  Rand  in  the  Heidelberg  district,  ajid  the 
principal  Far  Eastern  Rand  shares  have  shown  strength  on 
Cape  buying.  Tin  shares  have  recovered  on  a  sharp  rise  in 
the  price  of  the  metal. 

South  and  West  Afkicans. 

In  the  South  African  market  there  was  a  distinct  revival  of 
interest  in  low-priced  shares,  some  of  which,  such  as  Corona, 
tion  Syndicates,  have  not  been  heard  of  for  years ;  but  the 
interest  was  purely  speculative.  Knight  Centrals  have  risen 
IS.  9d.  to  5s.,  Princess  :s.  3d.  to  3s.  6d.,  Gotrz  6d.  to  14s.  6d., 
South  African  Lands  is.  to  7s.,  Roodepoort  Uniteds  is.  to 
7s.  6d.,  and  Simmer  Deeps  is.  3d.  to  js.  Among  the  usually 
more  active  shares,  City  Deeps  have  risen  5-32  to  3  15-32,  East 
Rand  Mining  Estates  3s.  6d.  to  i8s.  6d.,  Modder  Deeps  ^  to 
7J,  New  Modders  i  to  23J,  Springs  -j^  to  3},  Consolidated 
Mines  Selections  is.  6d.  to  29s.  3d.,  and  Modder  lycases  3-32 
to  3j.  Diamond  descriptions  have  met  with  support,  De  Beers 
Deferreds  lising  J  to  13I.  In  the  Rhodesian  section,  Ix>nely 
Reefs  have  risen  is.  6d.  to  33s.  3d.,  and  London  j-nd  Rhode- 
sians  is.  3d.  to  6s.  gd.  Shamvas  have  been  supported  at  i|  on 
the  ore  reserve  statement  to  the  effect  that  the  total  of  1,600,000 
tons  will  probably  be  considerably  incrf-ased  by  the  end  of 
June,  owing  to  favourable  developments  in  the  eastern  section. 
West  Africans  show  little  change. 

South  and  West  Afbicans. 

Copper  shares  have  been  supported.  Rio  7  intos  have  risen 
I  to  64J,  Mount  Morgans,  on  the  report,  is.  3d.  to  34s.  3d., 
Hamp^ens  is.  6d.  to  32s.  6d.,  and  Mount  Elliotts  J  to  3J. 
Broken  Hill  shares  have  been  in  request,  notably  British,  which 
are  is.  6d.  higher  at  37s.,  Proprietarys,  which  show  a  rise  of 
IS.  3d.  to  54s.  3d.,  and  Block  Tens,  which  are  is.  higher  at  25s. 
The  price  of  tin  recovered  sharply  to  ;£3oo  a  ton,  on  the 
monthly  statistics  showing  a  decrease  of  about  2,000  tons  in 
English  stocks  on  the  year.  Kast  Poois  have  risen  is.  to 
17s.  gd.,  Anglo-Continentals  is.  to  14s.  3d.,  and  Bisichis  to 
15s.  6d. 

Mexican  shares  have  been  in  request  on  the  rise  in  silver, 
and  El  Eros  at  gs.  and  Camp  Birds  at  7s.  gd.  are  both  appre- 
ciably higher.  Russian  shares  have  scarcely  moved.  After  a 
long  period  of  neglect,  Indian  gold  shares  have  been  inquired 
for,  and  show  a  general  though  slight  advance.  Baldwins  are 
quoted  at  2,  Nundydroogs  at  24s.  6d.,  Ooregums  at  19s.,  and 
Champion  Reefs  at  $s.  gd. 


MINING    NEWS. 


Rhodesian  Mineral  Ootpdt. — The  production  of  (jold  in 
November  was  /275,83o,  a  decrease  of  /4i,305  on  the  same 
month  of  last  year.  The  following  table  shows  the  production 
since  January,  1913 :— 


Month. 

1913. 

1914. 

1915- 

1916. 

1917. 

Janiunr 

February    

220,776 
a  8.744 
•57  797 
241,098 
»4».45« 

249.301 
250. -76 
230419 
247,068 
239.016 
23  4.687 

£ 
249.03a 
239,888 

«73,23« 
295907 
29,^,061 
306,4" 
3»,67o 
316,072 
309. '98 
337,241 
3Ii,7M[ 
309,669 

299.C86 

3«',473 
336.56s 
344.493 
321085 
339967 
313160 
331,376 

3l8!586 

v^q 

3»386 
323,783 
3  3.o7» 
32',365 
338,001 
3!».035 
325.608 
3'7.i35 
306,205 

296.113 

280734 
300,18) 

April    

hK.. 

299,27c 

jwSL::.:::::.::: 

Jni) 

288,731 

Ascvst 

Septenber 

October 

November 

December 

291.367 
289978 
275,830 

Totals. . 

«  903.»67 

3,580,307 

S,8»3,'66 

3,895  « I 

3.M4.737 

The  number  o  producers  was  175,  or  52  less  than  in  Ocober. 
and  the  output  of  other  metals  was  17,530  ounces  of  silver,  49,362 


January  12,  1918. 


Zbc  3nvcQioxQ'  TReview. 


43 


tons  of  coal,  337  tons  of  copper,   729  tons  of  asbestos,  55  carats 
of  diamonds,  and  i  ton  of  wolframite. 

BwANA  M'KuBWA  Copper. — The  accounts  for  the  year  ended 
June  30  show  that  the  financial  position  at  that  date  was  as 
follows  :  Cash  and  War  Loan  at  cost,  ;f  53,552  ;  debtors, 
£7,obq;  value  of  concentrates  on  hand,  ^8,000,  making  a  total 
of  ;f68,62i.  As  against  this,  the  company  owed  ;f5,i68,  leav- 
ing a  nett  cash  balance  of  ;^63,453.  The  total  landrights  held 
by  the  company  has  been  increased  by  6,000  acres  to  43,800 
acres.  Tonnage  of  ore  treated  amounted  to  18,548,  the  pro- 
duction of  concentrates  being  1,758  tons.  From  June  30  last  to 
the  end  of  November  a  further  561  tons  of  concentrates  were 
produced.  An  agreement  has  been  made,  and  now  awaits 
signature,  for  installing  a  new  process  for  the  treatment  of  the 
company's  ores.  This  plant  will  deal  with  100  tons  a  day,  and 
the  total  cost  to  the  company  will  be  ;f  10,000.  The  plant  wiU 
ba  capable  of  extension  up  to  500  tons  a  day.  The  new  process 
belongs  to  the  Minerals  Separation,  Ltd.,  and  the  tests  applied 
to  the  company's  ores  proved  satisfactory. 

Wf.lckd.^cht  Explor.wion. — Profits  in  the  year  ended  June  30 
amounted  to  ^^4,430,  against  ;^4,892,  out  of  which  a  dividend 
of  gd.  per  share,  against  6d.,  has  been  paid,  and  the  carry 
forward  is  reduced  from  ;£^5,o7i  to  ;f3,622.  Cash  and  loans 
at  the  end  of  the  year  amounted  to  ;^28,786.  Coal  sales 
amounted  to  150,636  tons,  against  127,106  tons,  realising 
;f  40,445,  or  ts.  4d.  per  ton.  Working  profit  amounted  to  ;f  5,098, 
or  8.i2d.  per  ton  against  8.63d. 

Charterland  and  General  Exploration. — In  the  year  ended 
August  31  the  profits,  subject  to  payment  of  excess  profits 
duty,  amounted  to  ^43,475,  an  increase  of  no  less  than  ;^34,8n. 
The  dividend  is  raised  from  5  to  20  per  cent.,  less  tax.  The 
old  Nic  Mine,  before  it  was  closed  down  at  the  end  of  Septem- 
ber, yielded  ;if33,8i2.  Three  farms  were  sold,  reducing  the  land 
holdings  to  112,344  acres  in  Mashonaland,  and  to  146,829  acres 
in  Matabeleland.     The  cattle  interest  was  also  sold. 

West  African  Gold  Outpdt. — Production  in  November- 
amounted  to  /i26,9i5,  a  decrease  of  /3,i86,  which  brings  the  total 
decrease  up  to  /56,ii3.  The  gold  output  of  all  the  principal 
fields  will  be  smaller  this  year  than  last.  The  following  table 
shows  the  monthly  production  since  January,  1913. 


Month. 

19 1 7. 

1916. 

1915. 

1914. 

1913. 

£ 

£ 

£ 

£ 

£ 

Jan.     .. 

131,665 

140.379 

143.649 

128  862 

144.262 

Feb.    .. 

104,892 

137.739 

144,034 

123.169 

117.038 

Mar.    .. 

158,727 

150,987 

153.770 

131,392 

150,060 

April    .. 

123.825 

135.976 

149.978 

131.697 

146,220 

May     .. 

121,104 

132,976 

142,121 

145.227 

142,617 

June    .. 

114,489 

127,107 

135,289 

147,289 

125,764 

July     .. 

142,017 

128,574 

140,290 

15   .021 

132.936 

Aug.     .. 

130,278 

125.143 

139.364 

150,386 

126,090 

Sept.    .. 

127.168 

127.138 

135,744 

154  316 

132,394 

Oct.     . . 

126,295 

132,577 

141.771 

159.410 

I37.'53 

Nov.    . . 

126,915 

130,101 

122,138 

154.674 

132,694 

Dec.     . . 

— 

146,409 

158,323 

147,699 

127.472 

Totals 

1.407.375 

1,615,306 

1.706,473 

1,727.044 

1,634,700 

Rambutan. — -The  profits  of  this  company  in  the  year  ended 
June  30  last  amounted  to  ^^19,084,  as  compared  with  .^f  11,395. 
Four  dividends  of  8d.  per  share,  as  compared  with  four  divi- 
dends of  6d.  per  share,  have  been  paid ;  the  balance  of  the 
underwriting  commission,  ;f 4,000,  has  been  written  off;  ^2,1  it 
is  written  off  the  cost  of  the  pipeline,  leaving  ;£973,  again-st 
;£  1,333,  *°  ^^  carried  forward.  Returns  of  tin,  259  tons,  valued 
at  ;^28,646,  have  been  the  largest  since  the  hydraulic  installa- 
tion was  completed.  The  production  was  increased  from  215 
tons  to  259  tons,  the  recovery  per  cubic  yard  being  i  lb.,  against 
13  ozs.  of  tin  ore.  The  average  price  realised  for  ore  was 
£t'°  I2S.  5d.,  against  ^fioo  17s.  3d.  per  ton;  the  average  cost 
of  winning  ore  was  reduced  from  ^,^43  to  ;^36  2s.  lod.  per  ton, 
and  the  working  profit  rose  from  ^f  56  iSs.  4d.  to  jf  75  9s.  7d.  per 
ton. 

Cynon  Colliery.— The  report  for  the  year  ended  September  30 
states  that  the  profit  was  £-],o2.i,  to  which  has  to  be  added 
;^i,6o2,  balance  of  excess  profits  duty  over-reserved  from  1916, 
sundry  revenue  amounting  to  /908.  There  is  also  to  be  in- 
cluded the  estimate  of  ^5,000  for  excess  profits  duty  recover, 
able  for  the  year,  making  a  total  of  ;rfi4,53i,  against  ^21,785. 
A  final  dividend  of  ■j\  per  cent,  is  proposed,  making  12^  per 
cent,  for  the  year,  less  tax,  as  against  15  per  cent.,  but  the  carry 
forward  is  raised  from   jf 9,949  to  ;f  11,362. 

Knights  Deep. — The  experience  of  this  company  in  the  year 
ended  July  31  is  typical  of  that  of  the  low-grade  gold  mine, 
which  is  dependent  for  a  normally  small  margin  of  profit  upon 
a  high  tonnage  and  low  operating  costs.  Shortage  of  labour 
reduced  the  tonnage  milled  by  110,800  to  1,196,500.  The  revenue 
per  torn  declared  was  4d.  lower  at  14s.  gd.,  while  working  costs 
rose  IS.  per  ton  to  13s.  3d.  Thus  the  working  profit  was  about 
■halved,  the  total  being  ^^93,214  against  /■197.943,  equal  to 
IS.  6d.  per  ton,  as  against  3s.  per  ton.  Including  sundry  re- 
venue, the  total  profit  was  ;^96,496,  or  is.  7d.  per  ton.  Divi. 
dends  amounting  to  15  per  cent,  -were  aa;ain  paid  during  the 
year,  and  the  sum  carried  forward  is  reduced  from  ^160,084 
tc  jf  110,907.  At  July  31  the  ore  reserves  were  estimated  at 
-2,301,000  tons,  of  an  average  value  of  4.4  dwta..  being  a  decrease 
of  313,000  tons. 

Mount  Morgan.— The  report  for  the  half-year  rnded  Novem- 
"ber  25  shows  that  the  revenue  amounted  f)  ^625, 161,  as  against 
jt043.990-     Kxpenditure  amounted  to  ;f  500,31 7,  leaving  a  surplus 


of  ;^i24,844,  against  ;^i4i,5iS-  Dividends  absorbed  ;fioo,ooo, 
and  the  balance  carried  forward  is  £^30,  against  £,78,2()y.  Re- 
serves and  undivided  profits  amount  to  ;i5i3,587,  and  liquid 
assets  to  ^^491,663.  In  furtherance  of  the  policy  of  the  Com- 
monwealth Government,  the  company  has  joined  the  other 
Australian  producers  in  the  formation  of  the  Copper  Producers' 
Association  Proprietary.  Future  sales  ol  copper  will  be  made 
through  this  association,  and  it  is  anticipated  that  advantages 
will  accrue  in  the  more  direct  realisation  of  the  Australian  pro- 
duction by  central  organisation.  Ore  treated  produced  4,114 
tons  of  copper  and  48,081  ozs.  of  gold,  as  compared  vith  4,554 
tons  of  copper  and  54,746  ozs.  of  gold  '  The  wage.i  bill  has, 
owing  to  awards  and  bonuses,  been  increased  by  ;£25,ooo  per 
annum. 

President  Wilson's  Fourteen  Points. 


(i)  Open  covenants  of  peace  openly  arrived  at,  after  which 
there  shall  be  no  private  international  understandings  of  any 
kind,  but  diplomacy  shall  proceed  always  franklv  a.ud  in  the 
public  view. 

(2)  Absolute  freedom  of  navigation  upon  the  seas  outside  terri- 
torial waters  alike  in  peace  and  in  war,  except  as  the  seas  may 
be  closed  in  whole  or  in  part  by  international  action  for  the 
enforcement  of  international  covenants. 

(3)  The  removal,  so  far  as  possible,  of  all  economic  barriers 
and  the  establishment  of  an  equality  of  trade  conditions  among 
all  the  nations  consenting  to  peace  and  associating  themselves  for 
its  maintenance. 

(4)  Adequate  guarantees,  given  and  taken,  that  national 
armaments  will  be  reduced  to  the  lowest  point  consistent  with 
domestic  safety. 

(5)  A  free,  open-minded,  and  absohitely  impartial  adjustment  of 
all  Colonial  claims,  based  upon  a  strict  ooservance  of  the 
principle  that  in  determining  all  such  questions  of  sovereignty 
the  interests  of  the  populations  concerned  must  have  equal  weight 
with  the  equitable  claims  of  the  Government  whose  title  is  to  be 
determined. 

(6)  The  evacuation  of  all  Russian  territory,  and  such  a  settle- 
ment of  all  questions  affecting  Russia  as  will  secure  the  best 
and  freest  co-operation  of  the  other  nations  of  the  world  in 
obtaining  for  her  an  unhampered  and  unembarrassed  oppor- 
tunity for  the  independent  determination  of  her  own  political 
development  and  national  policy,  and  assure  her  of  a  sincere 
welcome  into  the  society  of  free  nations  under  institutions  of 
her  own  choosing  ;  and  more  than  a  welcome,  assistance  also 
of  every  kind  that  she  may  need  and  may  herself  desire. 

The  treatment  accorded  Russia  by  her  sister  nations  in  the 
months  to  come  will  be  the  acid  test  of  their  goodwill,  of  their 
comprehen.sion  of  her  needs,  as  distinguished  from  their  own 
interests,  and  of  their  intelligent  and   unselfish  sympathy. 

(7)  Belgium,  the  whole  world  will  agree,  must  be  evacuated 
and  restored  without  any  attempt  to  limit  the  sovereignty  which 
she  enjoys  in  common  with  all  other  free  nations.  No  other 
single  act  will  serve,  as  this  will  serve,  to  restore  confidence 
among   the   nations    in    the   laws    which    they   have    themselves 


NOW   READY. 

ALL    INVESTORS 

should  read  the  introductory  article  to  the  January, 
1918,  Quarterly  Supplement  of 

"THE  100  BEST 
INVESTMENTS" 

which  deals  fully  and  frankly  with  the  present  position 
and  outlook  of  affars  from  the  point  of  view  of  the 
investor,  large  or  small.  The  Quarterly  Supplements 
contain  up-to-date  details  of  100  specially-selected 
securities,  covering  the  whole  available  field  of 
investment — from  National  War  Bonds  to  Ordinary 
Shares  in  Industrial  Companies — particulars  of 
further  investments  considered  worthy  of  attention, 
a  number  of  useful  tables,  and  hints  of  value  to 
everyone  concerned  with  the  remunerative  employ- 
ment of  capital. 

The  consequences  of  a  levy  on  capital  are 
envisaged,  and  the  policy  which  should  be 
followed  by  the  prudent  investor  is  laid  down. 

Post  free  on  nc  ipt  of  4d.  to  the  Publishers, 

The  British,  Foreign  and  Colonial  Corporation,  Ltd., 
Investment  Bankers, 

57.  BISHOPSGATE.   LONDON,  EC. 2. 


44 


^be  Jnvestors  TReview* 


January   12,  1918. 


set  and  determined  for  the  government  of  their  rplations  with 
one  another.  Without  this  healing  act  the  whole  structure  and 
validity  of  international  law  is  for  ever  impaired. 

(8)  All  French  territory  should  be  freed  and  the  invaded  por- 
tions  restored,  and  the  vtrong  done  to  Fr.ince  by  Prussia  in 
1871  in  the  matter  of  Alsace-Lorraine,  which  has  unsettled  the 
peace  of  the  world  for  nearly  fifty  years,  should  be  righted  in 
order  that  peace  may  once  more  be  made  secure  in  the  interest 
of  all. 

(9)  A  readjustment  of  the  frontiers  of  Italy  should  be  effected 
along  clearly  recogni.sable  lines  of  nationality. 

(10)  The  peoples  of  Austria-Hungary,  whose  place  among  the 
nations  we  wish  to  see  safeguarded  and  assured,  should  be 
accorded  the  first  opportunity  of  autonomous  development. 

(11)  Roumania,  Serbia,  and  Montenegro  should  be  evacuated, 
the  occupied  territories  restored,  Serbia  accorded  free  and  secure 
access  to  the  sea,  and  the  relations  of  the  several  Balkan  States 
to  one  another  determined  by  friendly  counsel  along  historically 
established  lines  of  allegiance  and  nationality  and  international 
guarantees  of  the  political  and  economic  independence  and 
territorial  integrity  of  the  several  Balkan  States  should  be 
entered  into. 

(12)  The  Turkish  portions  of  the  present  Ottoman  Empire 
should  be  assured  a  secure  Sovereignty,  but  the  other  nationali- 
ties which  are  now  under  Turkish  rule  should  be  assured  an 
undoubted  security  of  life  and  an  absolutely  unmolested  oppor- 
tunity of  autonomous  development,  and  the  Dardanelles  should 
be  permanently  opened  as  a  free  passage  to  the  ships  and  com- 
merce of  all  nations  under  international  guarantees. 

(13)  An  independent  Polish  State  should  be  erected,  which 
should  include  the  territories  inhabited  by  indisputably  Polish 
populations,  which  should  be  assured  a  free  and  secure  access 
to  the  sea,  and  whose  political  and  economic  independence  and 
territorial  integrity  should  be  guaranteed  by  international 
covenant. 

(14)  A  general  association  of  nations  must  be  formed  under 
specific  covenants  for  the  purpose  of  affording  mutual  guarantees 
of  political  independence  and  territorial  integrity  to  great  and 
snxall  States  alike. 


DIVIDENDS    ANNOUNCED, 

BANKS. 
A.  and  S.  Henry  and  Co. — The  directors  recommend  a  final  on 
ordinary  shares  of  5  per  cent.,  making  9  per  cent,  for  the  year, 
together  with   a  bonus  of  2j  per  cent.,  and   to  carry   forward 
jfi  17,220.     For  1915-1916  the  dividend  and  bonus  were  the  same. 

Australian  Pastoral  Co. — Final  of  5  per  cent,  on  consolidated 
ordinary  stock,  making  8  per  cent,  for  the  year,  against  6  percent, 
for  the  previous  year. 

Bank  of  Bombay.— For  the  pa«t  half-year  at  the  rate  of  15  per 
cent,  per  annum,  bonus  at  rate  of  2  per  cent.,  and  a  special 
jubilee  bonus  of  i  per  cent,  per  annum  ;  to  reserve,  Rs  4,00,000  ; 
to  pension  fund,  Rs.50,000  ;  forward,  Rs. 3, 27, 470.  A  year  ago 
the  dividend  was  13  per  cent.,  with  a  2  per  cent,  bonus. 

Bank  of  Liverpool. — Interim  of  7  per  cent,  (actual),  less  tax,  for 
past  half-year,  the  same  as  a  year  ago. 

Bradford  District. — Final  for  past  half-year  at  rate  of  5s,  6d.  per 
share,  making  13I  per  cent,  per  annum,  less  tax  ;  to  reserve 
/20,ooo  :  to  bank  premises  fund,  ^5,000  ;  to  officers'  pension 
fund,  ;f2,ooo  ;  carried  forward,  /38,076. 

British  American  Tobacco. — Final  of  6  per  cent.,  tax  free, 
making  30  per  cent,  for  the  year,  forward  /2, 52^,699,  subject  to 
excess  profits  duty  for  1917,  An  interim  of  6  per  cent,  on  account 
•f  the  current  year  is  declared. 

Canadian  Explosives  Co. — ij  percent,  on  7  percent,  cumulative 
preferred  shares  for  the  quarter  ended  Dec.  31,  payable  Jan.  15. 

Capital  and  Counties. — For  the  past  six  months  at  the  rate  of 
14  per  cent,  per  annum ;  carried  forward,  ;f  204,068,  as  against 
;f87,29i  last  Dec. 

Cropper  and  Co.— Interim  at  rate  of  5  per  cent,  per  annum  on 
ordinary  shares  for  the  six  months  to  Dec.  31,  payable  on  Jan.  25. 
Cornbrook  Brewery  (Manchester). — Final  of  7 J  per  cent,  actual 
on  ordinary  shares,  free  of  tax,  making  10  per  cent,  for  year,  with 
a  bonus  of  2  por  cent.,  tax  free.  Last  year's  distribution  was  2J 
per  cent. 

Direct  United  States  Cable  Co. — Interim  of  2s.  per  share,  less 
tax,  being  at  rate  of  4  per  cent,  per  annum,  for  the  quarter  ended 
Dec.  31,  payable  on  Jan.  31. 

Distillers  Co. — Interim  for  the  current  year  on  ordinary  shares 
of  8s.  per  share,  tax  free,  being  at  the  rate  of  8  p«r  cent,  per 
annum,  payable  on  Feb.  i.    This  is  the  same  as  last  year. 

English  Sewing  Cotton  Co. — Interim  of  4  per  ctnt.  (actual)  on 
the  ordinary,  the  same  as  last  year. 

Halifax  Commercial. — Final  los.  per  share,  making  9  per  cent, 
for  the  year,  less  tax,  against  8  per  cent,  for  1916 ;  ;^5,ooo  to 
reserve,  and  ;f3,ooo  to  a  special  reserve  for  contingencies,  leaving 
;f  3.384  to  be  carried  forward. 

Hall  and  Co.,  Croydon.  Ltd. — Interim  on  ordinary  shares  for 
the  half-year  ended  Sept.  30  at  the  rate  of  5  per  cent,  per  annum, 
less  tax. 

Insulinde  (Sumatra)  Rubber  and  Tobacco  Estates. — Final  of  20 
per  cent.,  making  30  per  cent.,  less  lax.  for  the  year. 

Ipoh  Tin  Dredging. — Final  5  per  cent.,  less  tax,  making  10  per 
cent,  for  the  year  ;  for  1916  5  per  cent,  was  paid. 

Karainistiqaia  Power  Co.— 2  per  cent.,  or  at  the  rate  of  8  per 
cent,  per  annum,  for  quarter  ending  Jan.  31,  against  ij  per  cent, 
for  the  corresponding  period. 


Lancashire  and  Yorkshire. — Final  of  i6s.  per  share,  less  tax^ 
plus  a  bonus  of  2S.  8d. ;  to  reserve,  ^10,000;  forward,  ;^58,6oo. 
Last  year  no  bonus  was  paid. 

Lima  Light,  Power,  and  Tramways— ij  per  cent.,  less  tax, 
against  i  per  cent,  a  year  ago. 

London  City  and  Midland. — At  the  rate  of  18  per  cent,  per 
annum,  less  tax,  /733,785  carried  forward.  I.-ast  year  was  at  the 
same  rate,  with  ^243. 538  carried  forward. 

London  County  and  Westminster. — 10  per  cent,  for  the  past 
half-year,  less  tax,  making  19  per  cent,  for  1917,  against  18  per 
cent.  ;  ;f  184,600,  against  ;f  182,290,  forward. 

London  Joint  Stock. — Final  15s.  per  share,  less  tax,  being  at  the 
rate  of  10  per  cent,  per  aanum  ;  ;£^ 200. 000  to  reserve,  /'20.000  to 
superannuation  allowance.  ;f20,ooo  in  reduction  of  premises 
account,  and  ^125,000  carried  forward.  Net  profits  for  1916  were 
^548,624. 

London  and  South-Western  Bank. — An  interim  of  17  per  cent, 
per  annum,  less  tax,  was  paid  in  July  last,  and  it  is  now  proposed 
to  pay  a  final  dividend  at  same  rate,  thus  making  the  distribution 
for  the  year  the  same  as  for  1916.  The  appropriations  leave 
£54,391  to  be  carried  forward,  against  /^55,479. 

Lumut  Rubber  Estates.— Final  12.J  per  cent,  (actual),  less  tax,, 
the  same  as  a  year  ago. 

National  Discount. — For  the  past  half-year  of  6s.  per  share,  less 
tax,  as  against  5s.  per  share  for  second  half  of  1916,  making  11  per 
cent,  for  the  year,  as  against  10  per  cent,  for  1916,  carrying  for- 
ward about  /45,ooo, 

Parr's  Bank. — For  the  past  half-year  at  rate  of  20  per  cent,  per 
annum,  less  tax,  making  19  per  cent,  for  1917;  ;f  30,000  is  placed 
to  bank  premises  account,  leaving  :f  384,733  to  be  carried  forward. 
A  year  ago  at  the  rate  of  18  per  cent,  per  annum,  making  18  per 
cent,  for  year,  and  balance  forward  was  ^^184, 179. 

Peel  River  Land  and  Mineral  Co.— Final  5  per  cent.,  free  of 
tax,  making  10  per  cent,  for  the  year,  same  as  for  preceding  12 
months. 

River  Plate  and  General  Investment  Trust  Co. — Final  of  6  per 
cent,  on  deferred  stock,  less  tax,  for  the  half-year  to  Dec.  31, 
making  lo  per  cent,  for  the  year,  the  same  as  a  year  ago. 

Rohilkund  and  Kumaon  Railway  Co.— A  final  for  year  ended 
Sept.  30  of  3  per  cent.,  together  with  a  bonus  of  i  per  cent,  on 
ordinary  stock,  making  a  total  payment  of  8  per  cent,  per  annum. 
The  dividend  and  bonus  will  be  paid,  less  tax  at  3s.  gd.  in  the  £, 
on  Feb.  4. 

Sendayan  (F.M.S.)  Rubber  Co.— 10  per  cent,  (actual)  in  respect 
of  the  year  ended  Sept.  30,  making  17J  per  cent,  for  the  year ; 
carry  forward  £22,400.  The  dividend  for  1915-16  was  224  percent. 

South  Behar  Railway  Co.— Dividend  at  rate  of  5  pe«  cent,  pe 
annum  for  half-year;  £7,690,  against  £7,397,  forward. 

Union  Bank  of  Australia— Dividend  at  rate  of  10  per  cent,  per 
annum,  equal  to  £1  5s.  per  share,  and  a  bonus  of  2  per  cent., 
equal  to  los.  per  share,  together  amounting  to  £1  15s.  per  share,. 
free  of  income-tax  ;  to  reserve  fund  £20,000,  making  it  £2,000,000, 
leaving  £73,504  forward  ;  a  year  ago  the  dividend  was  the  same. 

Union  of  London  and  Smiths. — Final  at  the  rate  of  10  per  cent, 
per  annum,  subject  to  tax  (the  interim  paid  in  July  last  was  at  the 
same  rate) ;  £209,303,  against  £82,543,  will  be  carried  forwartl ;  a 
year  ago  the  dividend  was  the  same. 

Vfatney,  Combe,  Reid  and  Co, — Dividend  at  rate  of  6  per  cent, 
per  annum  on  deferred  stock  ;  a  year  ago  no  interim  was  paid. 

West  Yorkshire  Bank. — i6s.  per  share  for  half-year  ended 
Dec.  31,  making  13J  per  cent,  for  the  year,  less  tax,  the  same  as 
last  year;  £30,000  to  reserve  ;  forward  £18,753,  against  £10,384. 


Insurance    News. 


In  presenting  their  valuation  return  as  on  Novem- 
ber 20  last,  on  which  date  the  institution  completed  its^ 
.seventeenth  quinquennial  pieriod,  the  directors  of  the 
Friends'  Provident  remark  that  the  valuation  is  made 
under  circumstances  more  extraordinary  than  have 
been  present  on  the  occasion  of  any  previous  valuation 
in  the  history  of  the  office.  The  valuation  has  been 
carried  out  on  very  stringent  principles,  and  with  the 
view  that  all  resources  should  be  rigorously  conserved. 
Depreciation  of  investments  has  cost  a  nett  sum  of 
;£^2g4,ooo,  and  with  the  increase  in  income-tax,  and 
losses  on  war  claims,  the  total  was  ;^393,ooo.  No 
bonuses  are  to  be  paid,  whereas  five  years  ago 
;^302,ooo  was  distributed.  The  life  assurance  fund 
now  stands  at  ;^3,232,i49,  as  contrasted  with 
^'3,424,511  at  the  beginning  of  the  period.  A  surplus 
of  ^63,177  is  carried  forward,  and  the  directors  have 
not  decided  as  to  the  date  of  the  next  valuation,  but  a 
distribution  of  surplus  will  be  made  before  1922  if  cir- 
cumstances should  render  it  desirable  to  adopt  such  a 
course.  Interim  bonuses  have  been  allotted  on  with- 
profit  policies,  which  become  claims  before  Novem- 
ber 20  next,  of  I  per  cent.  The  present  position  is  a 
strong  one,  both  as  regards  reserves  and  profit-earning 
power.     New  life  business  has  of  late  been  progressive 


January   12,  1918. 


Zbc  Jnvestous'  IRevtew. 


45 


I  in  amount  and  well  sustained  in  quality,  and  but  for 
the  adverse  features,  principally  due  to  the  war,  there 
would  have  been  a  surplus  which  would  have  provided 
bonuses  substantially  exceeding-  those  declared  in  191 2. 
As  a  result  of  the  present  writing  down  of  lx)ok  values, 
combined  with  new  investments  at  the  higher  level  now 
prevailing-,  the  average  rate  of  interest  will  be  appre- 
ciably enhanced.  A  new  prospectus  now  in  course  of 
preparation  will  be  issued  shortly. 

I^B  For  the  year  ended  September  30  the  total  receipts 
■^*of  the  United  Insurance  Co.  showed  a  further  increase 
at  ^^399,015,  claims  absorbed  ;^9i,664,  and  after  pay- 
ing expenses  the  available  balance  was  ^43,662. 
Various  reserves  received  additions  amounting  to 
;^23,ooo,  the  general  reserve  now  standing  at 
;^"i 20,000,  the  reinsurance  fund  at  ;^ioo,ooo,  and  the 
reserve  for  the  equalisation  of  dividends  at  ^,'14,000. 
After  paying  a  dividend  of  10  per  cent,  the  balance  of 
£6,662  is  transferred  to  contingent  account. 

During  the  past  year  the  cost  of  the  principal  fires  in 
the  United  Kingdom  amounted  approximately  to  just 
over  four  millions  sterling,  an  increase  of  about 
;^7oo,ooo  as  compared  with  the  figures  for  the  previous 
year,  but  a  decrease  of  ;^205,ooo  when  compared  with 
the  total  for  1915.  Only  fires  are  taken  into  account  in 
which  the  damage  amounted  tO;^i,ooo  or  more,  and  in 
the  aggregate  it  may  safely  be  assumed  that  small  fires 

i ^Represented  a  very  large  sum,  and  probably  the  esti- 
^Rnates  generally  err  on  the  side  of  moderation,  as  dur- 
ing the  past  three  years  rejxyrts  have  not  been  pub- 
lished as  freely  as  in  pre-war  times. 


IV 


Answers  to  Coppespondents. 


^^V.*  A  Key  to  iheso  Answers  will  bo  posted  early 
V^m  each     week     tor    a    subscription     of     ONE 

V^Kt         GUINEA  per  annum,  lis.  for  six  months,  or 
^^B         Gs.  3d.  tor  three  months. 

Deposits  against  future  queries  may  be  lodged 
with  the  Publisher. 

\^K!  L.  G.  R. — (i)  Life  estimated  at  about  15  years.  At  the  pre- 
^^^ent  price  there  is  not  much  scope  for  a  rise  unless  dividends 
can  be  increased,  an  event  hardly  to  be  expected.  (2)  Life  pre- 
sumed to  be  25  to  30  years.  In  this  case  aJso  there  can  be  no 
great  appreciation  unless  profits  expand  or  life  proves  longer 
than  estimate.  (3)  If  you  are  prepared  to  hold,  there  is  some 
chance  of  improvement.  The  company  is  now  on  a  better  basis, 
and  some  of  its  assets  are  turning  out  good  paying  properties. 

I  Timothy. — Do  not  average  just  yet,  but  hold  on. 
Braeside. — (i)  It  is  purely  a  hazard  at  present,  but  the  price 
oks    low,    and    that   will    probably    some   day    bring   the  fools 
amping  in  to  buy.     (2)  Not  much  present  prospect  of  improve- 
ent  here,  we  fear. 
Z.  Y.  X. — Don't.    Where  is  the  security? 
Slavofil. — We  dare  not  give  you  a  definite  opinion,  but  should 
11,  were   the  case    ours,  lest  worse    come.     Years    look    like 
elapsing   before  all  is  in  order  again. 

S.  M.  A. — (i)  Good.  Would  probably  be  higher  but  for  excess 
profits  tax.  (2)  Yes,  with  the  same  re.servation.  (3)  Very  fair 
also,  but  not  particularly  cheap,  looking  at  the  state  of  the 
market. 

Thames. — Advice  in  both  cases  quite  good,  (i)  has  the 
Dominion  guarantee.  (2)  The  immediate  return  is  not  high, 
but  there  is  a  fair  capital  increase  on  redemption. 

W.  E.  V. — The  company  has  speculative  chance-.,  but  you 
have  a  nice  profit.     Why  not  take  it? 

G.  J.  S. — (i)  You  must  either  do  so  or  sell.  The  company 
h.-is  a  speculative  chance,  and  no  more  than  that.  (2)  These 
you  might  still  keep,  as  the  position  is  distinctly  better. 

Coke. — Not  now ;  they  look  fully  priced. 

N.  E.  R. — There  is  no  market  for  them,  we  are  informed,  and 
nothing  has  been  heard  of  the  company  for  a  long  time. 

].  M. — Not  at  present  prices,  (i)  is  paying  you  well,  and  the 
company  is  carefully  managed.  (2)  Having  waited  so  long,  it 
seems  a  pity  to  sell  now.  It  is  still  strong  financially,  and  will 
recover  a  good  part  of  its  business  after  the  war. 


I 


BOOKS    RECEIVED. 


II 


Mathieson's  Handbook  for  Investors  tor  191S.  Price,  2S.  6d. 
nett.  Publishers,  Fredc.  C.  Mathieson  and  Sons,  16,  Copthall 
Avenue,  London,  E.C.  a. 


Tea,  Oil  and  Rubber. 


With  the  price  of  standard  crfipe  back  at  less  than 
half-a-crown,  the  Rubber  share  market  has  not  much 
to  go  for  at  the  present  range  of  values,  but  the  higher 
priced  shares  have  met  with  a  good  deal  of  support, 
and  several  of  them  have  marked  substantial  gains. 
The  bulls  are  apparently  determined  to  bring  about 
a  rule-oif-thumb  curtailment  of  output,  and  it  is  said 
■that  some  90  per  cent,  of  the  members  of  the  Rubber 
Growers'  Association  have  agreed  to  cut  down  their 
crops  by  20  per  cent.  What  the  other  10  per  cent, 
and  the  increasingly  important  .American  interests  may 
do  is  discreetly  kept  in  the  background,  or  left  to  the 
imagination.  But  from  a  purely  superficial  point  of 
view  it  is  a  rather  fascinating  scheme.  As  we  have 
already  pointed  out,  the  trees,  especially  at  certain 
stages,  are  all  the  better  for  being  rested,  and  they 
charge  nothing  for  holding  back  their  juice.  On  the 
contrary,  it  may  help  to  strengthen  their  growth,  and 
if  light  tapping  produces  enough  to  pay  handsome 
dividends,  holders  can  wait  patiently  until  the  time  is 
considered  propitious  for  exacting  the  last  drop  of 
blood.  Besides,  there  is  that  terrible  excess  profits 
duty,  but  you  are  pilloried  as  a  terrible  traitor  to  the 
cause  if  you  so  much  as  hint  that  to  avoid  some  portion 
of  it'  enters  into  your  calculations.  On  the  contrary, 
it  is  a  perfectly  legitimate  business  proposition  that 
if  your  estate  requires  resting,  and  you  happen  to  be 
smarting  under  the  inequalities  that  eventuate  from  the 
flat  rate  of  the  excess  duty,  output  should  be  reduced 
at  any  rate  until  the  powers  that  be  recognise  that  there 
are  exceptional  conditions  which  they  have  never 
taken  any  account  of.  But  there  is  an  enormous  gap 
between  allowing  estate  managers  to  do  what  they  con- 
sider best,  not  only  for  the  trees,  but  for  the  share- 
holders who  have  invested  in  them,  and  compelling  them 
for  the  sake  of  speculators  to  create  an  artificial  price 
for  their  produce.  Anyhow,  when  we  recall  the  state- 
ments about  the  shortage  of  rubber  that  was  to  occur 
this  year,  and  the  next,  and  the  one  after,  the  hypo- 
crisy of  the  present  movement  is  nauseous,  not  to 
mention  that  it  is  absolutely  futile. 

It  is  evident  that  very  substantial  progress  has  been 
made  by  Trinidad  Leaseholds,  Ltd.,  an  important  oil 
proposition  controlled  by  two  such  powerful  groups  as 
the  Central  Mining  Corporation  and  the  Consolidated 
Gold  P'ields  of  South  .'Africa.  In  the  year  to  June  30 
the  trading  profit  was  ;^jo6,5oo,  and  after  writing  off 
depreciation  the  nett  profit  was  ;^43,ooo.  From  this, 
however,  there  has  to  be  deducted  a  debit  balance  of 
;^20,5oo  arising  from  the  preliminary  operations  of 
the  company  up  to  June  30,  1916,  and  a  credit  of 
;^22,5oo  remains,  which  it  is  proposed  to  carry  for- 
ward. With  preliminary  exfjenses  wip)ed  off,  the 
balance-sheet  has  a  healthier  appearance,  but  a  good 


AUSTRALIAN 
MUTUAL  PROVIDENT 

Estd.  SOCIETY.  1S49. 

The    Largest    Mutual   Life    OfBce    in    the    Empire. 

Funds,  £37,000,000.  Annual  Income  £4,700,000. 

MODERATE     PREMIUMS. 

LIBERAL     CONDITIONS. 

WORLD-WIDE     POLICIES. 

Every  Year  a  Bonus  Year.    Whole-life  Policies,  20  years -in  force,  show 
average  Increase  of  the  'sum  assured  by   Bonus  exceeding  50  per  cent. 

Endowment  Assurance  Results  also  Unsurpassed. 

37|Thneadneedle  St.,  Londotii  E.C.  2. 


# 


ZTbe  Jnvestore'  TRevfew. 


JiUfPARY    12,    191^. 


deal  of  capital  expenditure  Ijas  been  incurred,  and  the 
loan  account  is  ;^^6o,ooo  up  at  ;£,'20o,ooo.  It  is  pro- 
j>osed  to  increase  the  nominal  capital  by  ;£r30o,ooo  to 
;£.85o,ooo,  and  to  issue  282,000  ^.'i  shares  niainiv  in 
satisfaction  of  debts  incurred.  An  extended  develop- 
ment programme  has  been  undertakpn,  and  five  new 
wells  have  been  successfully  brought  in,  with  the  result 
that  the  output  for  the  past  six  months  has  averaged 
iOy6oo  tons  monthly.  The  company  has  not  yet 
achieved  the  results  at  one  time  anticipated,  but  it 
certainly  looks  now  as  though  it  would  "  make  good." 

ASAHAN  RUDBER  ESTATES,  LTD.— Year  to  July  31.  Issued 
capital,  ;^io9,i6o,  in  los.  shares.  Estate  account,  ;^ii3,930. 
Reserve,  j^  15,000. 


N«tt  profit 

Dividend    

Carried  forward 

Output    lbs. 

Arcrage  price  

All-in  cost 

Planted  area    ficres 

Yield  per  acre    lbs 


1915- 


2*  p.C. 
^1.037 

137.580 

IS.  3.4id. 

li.  4.13d. 

J.464 

55 


1916. 


^18,080 

10  p.C. 

;f».659 

257.500 

as.  7.99d. 

is.3  4od. 

1.464 

105 


1917. 


/31.150 
I7i  p.C 

^3.752 

432,920 

as.  8.29d. 

IS.  3.26d. 

2.464 

175 


Output  is  steadily  increasing,  and  from  the  area  actually  in 
bearing  the  average  yield  last  year  was  290  lbs.  For  the  cur- 
rent year  the  output  is  estimated  at  550,000  lbs.,  and  there  are 
5,876  acres  in  reserve.  Apparently  the  company  has  not  yet 
been  troubled  with  exces.s  duty,  but  it  will  come  into  the  net 
this  year,  and  partly  for  that  reason,  perhaps,  /'io,ooo  is  added 
to  reserve. 

Kei.anta.n  Ruiiber  Estates,  Ltd. — Year  to  June  30.  Issued 
capital,  ^100,000,  in  ;fi  shares.  Estate  account,  ;fii5,46o. 
Reserve,  nil. 


Kttt  proBt 

Carried  forward   

Output    lbs, 

Avtrage  price   

All-in  cost 

Planted  area    ac-e 

Yield  per  acre   '.lb--. 


1915 


/mm 

/1.194 
41.427 

IS.   io,7od. 

IS.  4.4id. 

1.774 

*3 


1916. 


/4.355 

73.570 

29.  6  42d. 

IS.  5.i5d 

J. 774 

44 


1917. 

;f7.i96 

/13.46J 

154.620 

2s.  4.93d. 

IS.  4.7od. 

1.774 
88 


No  dividend  has  j-et  been  paid,  and  preliminary  expenses 
amounting  to  ;^2,29o,  besides  a  suspense  account  of  ;^i,500, 
have  not  been  wiped  off.  Only  270  acres  were  planted  between 
1906  and  1910,  but  514  were  p' anted  in  iqii  and  682  in  1912. 
Accordingly  there  ought  to  be  a  substantial  increase  in  the  out- 
put in  the  near  future,  hut  no  estiniat?  is  given  for  the  current 
year.  It  is  stated  that  sufHcient  labour  is  very  difficult  to 
obtain  owin§  to  waj  conditions,  but  other  estate*,  seem  to 
manage  all  right. 


South  African  Gold.— The  total  production  of  gold  from  the 
Union  of  South  Africa  (states  the  annual  report  of  the  Govern- 
ment mining  engineer,  just  issued)  since  1868,  when  gold  was 
first  discovered,  amounts  to  approximately  ;^5i4, 963,000  up  to 
the  end  of  1916,  and  this  was  practically  all  won  in  the  Trans- 
vaal, 


Copies  of  THE  INVESTORS'   REVIEW  can 
be  obtained  in  Paris  at 

Messrs.  W.  H.  Smith  &  Son's, 
248,  Rue  de  Rivoli. 


PUBLIC     INCOME     AND    EXPENDITPI^E. 

The   following   are   the   receipts   into   and   issues   out     of    tb^ 
Exchequer  between  April  1.  1917.  and  January  5.  ^9^8: — 


Estimato 

for  the 

Year 

1917-T918. 

(See  note.) 


{  Total  Keceipts 
I        into  the 
jExchwjucrfrom 
April  I,  1917.  to 
i     Jan.  5,  1918. 


70,750,000 

34.950.050 

29,000,000 

6,000,000 

2,600,000 


224,000,000 

200,000,000 

400,000 

33,700,000 

600,000 

7,500,000 

27  too  00^ 


638,600,000 


Balances    in    Exchequer    on 

April  I— Bank  of  Engl.uid  .. 

Bank  of  Ireland    .. 

Rbvenub. 

Customs  

Excise 

Estate,  &c.,  Duties 

Stamps.. 

Land  Tax ) 

House  Dttty    ( 

Property  and  I  ncome  Tax  and 

Super  Tax    

Exc(:ss  Profits  Duly  (including 

Munitions  Le^y)    

Land  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    from    Sondry 

Loans,  &c 

M  iscellaueous 

Kevenue   

Total,  including  Balance 

Other  Receipts. 

Repayment  of  Advances  for  Bullion   

Repayment  of  Advances  for  Interest  OD 
Exchequer  Bonds  under  the  Capital  Expen- 
diture (Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Offic*-  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1*^97  to  1903 

Un  ier  Public  Buil  ings  Expenses  Act,  1903  .. 

Under  Housing  Act,  1914 

For  Treasury  Bills  (tor  supply)    

For  Exchequer  Bonds  under  the  Capital 
Ex'  enditure  (Money)  Act,  1904 

For  Exchequer  Bonds  under  the  Cunard 
Agreement  (Money)  Act,  1904   

For  4^  per  Cf-nt.  War  Loan.  ^925-1945 • 

For  5  per  Cent.  Exchequer  Bonds,  1919  ..,, 

For  5  per  Cent.  Exchequer  Bonds,  1920    

For  5  per  Cent.  Exchequer  Bonds,  1921   .... 

For  5  per  Cent.  Exchequer  Bonds.  1922    

For  6  per  Cent.  Exchequer  honds,  1920    .... 

For  War  Expenditure  Certificates    

For  War  Savings  Certificates 

For  other  Debt  created  under  the  War  Loan 
Acts,  1914-1917 

For  4  per  Cent.  War  Loan,  1929-1942,  and  5  per 
Cent.  War  Loan,  1929-1947 

For  National  War  Bonds    . . . 

Cunar    Loan :  Repayment  on  a/c.  of  Principal 

China  Indemnity   

Temporary  Advances- 
Ways  and  Means  (including  Treasury  Bills 
^345,000,000  in  1916-1917) 
Totat 


£ 

1.225,91 


i6t4l\,^fi9~ 


54,ot3,ooc. 

28,470,000 
33.821,000 
5,728,000 

480,000 

75,398.000 

i53,652/)oo 

339»<<oO 

25,600.000 

4(0,000 

1,908,100 
46,722.390 


Total   R»ceipls 
into  the 

Exchequer  from 

April  I.  1916,  to 

Jan.  6.  1917. 

~£ 
ss.rit.oti) 

46^-9_i» 


25.57^.00^ 


416,641.390 


448,077,249 


l,77o,coo 


169,818 
xoo,oob 
68,oco 


394.500 

2,114,220,000 


1,300.000 


82,309.400 

31,900,000 
556,870,296 

<66.9i3,58o 

'^216,099  000 
130,000 

840.10^.500 


4.455.335.34^ 


52.377  .coo 

42,015  O30 
22,382,000 
5.544.000 

530,000 


6o,07o,oco 

87,510,000 
iSK.ooo 

^5.iPQ.ooo 
47i,oou 

5.'34.570 
11^805,572 


3'3o3-U*i 


338.58»,I54 


2,910,000 


310,000 

i6o^Stf 

M14 

>.ood 

74,606 
»i756.9*3-o«o 

3,087,600 


4U 

34,222,000 
84.140.4^ 
62,468.806 

160,531,000 
29,878,500 

4i.|50»ooa 
199.875.038 


130,000 
400,000 


610,051.000 


3.324,979.«M 


Note.— E-timaie  as  In  House  of  Commons  Paper  No.  75  of  1917,  and  Sup- 
plementary Grants. 
^Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account. 


Expenditure 
and  othbk  issuks. 


I    Total  Issues 

Estimate  for    lout  of    the   Ex- 

the  Year        !chequertomeet 

1Q17-18.         jpayments    from 

(See  note.)     lApril  1,  1917,10 

(      Jan.  5.  :9i8. 


£ 
17,000,000 
194,500.000 


9,700,000 

1,695,000 
2.543.830.0^0 


3.76 '.725  "txi 


Q    Exchequer! 
Expenditure 


Expenditure. 
Permanent  Charge  of  Debt  . . 
Interest,  &c.,  on  War  Debt  . . 
Payments  to   Local  Taxation 

Accounts,  &c 

Other      Consolidiated      Fond 

Services    

Supply  Services    

Expenditure    ., 

Other  Issues. 

For  Advances  for  Bullion 

Fer    Advances    for    Interest    1 

Bonds    under     the     Capital 

(Mone>)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Kailway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903  , . 

Under  Housmg  Act,  1914 

For  Treasury  Bills  for  Supply 

For    Exchequer    Bonds    under    the    Ci  ital 

Expenditure  (Money)  Act,  1904    

For  Exchequer  Bondsunderthe  Cunard  Agrec- 

me   t  (Money)  Act,  1904 

For  War  Loan^.  Eichequer  Bonds,  &c., under 

Section  34  of  Finance  Act,  1917  ..... 

For  other   Debt  un.er  the  War  Loan   Acts, 

I9M  to  1917 

For  Depreciation  Fund  under  the   Finance 

Act,  1917 

Old     Sinking    Fund,    1907-8,    Issued    under 

Section  9  of  the  Finance  Act,  1908  . 
Old    Sinking     Fund,     1910-11,    issued    und^ 

the  Finance  Act,  1911,  Section  16  (i)  (b)  .. 
Old  Sinking  Funds.  1911-13  and  I9i3-i4t  issued 

under    the    Anglo  -  Persian    Oil    Company 

(Acquisition  of  Capital)  Act,  1914 
Cunard  Loan  Re  ayments— 

Issued  10  reduce  Debt  under  the  Cunard 

Agreement  (Money)  Act,  1904 
Temporary  Advances  repaid — 

Ways  and  Means  (including  Treasury  Blll^ 

£33t,53i,ooo  in  1916-17) 


i 
17,006,991 
146,180,009 

6.5t7,664 

x,270,a59 
[.903,064.425 


I  Total  issues 
out  of  the  Eii- 
'  chequer  to  meet 
:  payments  from 
JApril  I,  igi$,  19 
I     Jan.  6,tqij. 


rr 

18,003,300 

99,8o«,9i7 
6,«5S.3»5 

:. 496,826 
i,473,oi..?03 


a,074.a4»}<»    I    1,5911,778,137 


i      1918.  1917. 

1  Jan.  5.        Jan.  6. 
Balances  in  Exchequer—  £  £ 

Bank  of  England '  i},4t<,39},  i6,«]7.778 

Bank  of  Ireland i      967,4321       924,060 

Total 


1,970,000 
169,818 

100,000 

95,000 


M4,Soa 
t>5O4,364.<»0 


1,300,000 

6,B3>,S97 

35,21 8,0  j6 

26,490,200 

lo,coo 

ao,ooo 

94^,000 

1)0,000 

786,849.000 


4.43»  94i.Jl9 


16  3S3.I'24 


ai^o,o9o 


9'. 370 
iio.aeo 
i6r,oao 

8,008 
8,000 

«.»53.447.<»o 
3,ol7,6ao 


9.»5<.95r 

^,000 

53.«6o 

230,000 
130,000 
438.3i4,qy 


3,307,617,577 


I7.36l,8<8 


4,»}i,3'5.  43     i     3.3'4f794'5 


W- 


.hlfcMu.^l  rt^.ury  t5l|I«  outstanding  oc  Jan.  5.  191! 
•  Include!  f  321,521,  the  procteds  of  wbicu  wers'i  ot  carcied  to  the 
witbtn  the  period  of  the  account. 


£i.P73.«99.*oo 
e,xcliei)Oor 


JxktARV    12j    1918. 


Zbc  3n  centers'  iKeview. 


47 


What    Balance   Sheets   Tell. 

I^t        («EW   tEALAND    AND    RIVER    PLATE    LAND    MORTGAGE 
H  CO.,   LTD. 

Not  much  change  is  shown  in  the  report  for  the  year  to 
October  31  as  compared  with  the  previous  twelve  months. 
Xett  profit?  were  a  little  higher,  but  the  amount  brought  in 
wns  less,  and  the  sum  of  ^84,400  avaiiable  is  practically  the 
same  as  last  time.  Consequently,  the  dividend  of  12  per  cent., 
less  tax,  is  repeated,  and  ^^25,000,  or  ^2,000  less,  is  placed  to 
reserve,  which  will  then  amount  to  ;f54o,ooo,  against  deben- 
tures for  ;/^4i7,ood  and  a  share  capital  of  ;^35o,ock..  The  carry- 
forward is  increased  by  ;fi,5oo  to  ^^17,400.  During  the  year 
debentures  for  ;f42,ooo  were  paid  off.  Cash  has  increased 
^^22,500  to  ;£33,iSo,  bills  receivable  are  up  ;^j8,ooo  at  ;^96,ooo, 
and  London  investments  are  ;£2io,ooo  higher  at  ;£3i 7,000,  but 
toans  on  mortgage  in  the  River  Plate  have  been  reduced  by 
;f30o,ooo.  Kverything  in  the  balance-sheet  looks  clean  and 
healthy,  and  it  is  evident  that  the  company  is  pulling  through 
a  tiying  period  with   flags   flying. 

CORDOVA      LAND      CO.,      LTD. 

This  company  did  not  do  so  well  in  the  financial  year  ended 
September  30  last  as  in  the  previous  period.  7,250  more  head 
of  cattle  were  sold,  but  of  this  5,014  represented  forced  sales 
of  young  breeding  stock  on  capital  account,  and  the  average 
price  realised  was  only  ^8  173.  lod.  per  head,  as  against 
;£i4  los.  in  the  previous  twelve  months.  Altogether,  live-stcx;k 
sales  brought  in  j^24,2°o  less  at  ;^i30,ooo,  but  interest  and  pro- 
duce sales  produced  ^8,375  more,  so  that  gross  revenue  is  only 
down  ;^i5,goo  at  ^'148,040,  t/nfortunately,  expenses  and  two 
years'  excess  profits  duty  absorbed  ;^io,7oo  more,  with  the  result 
that,  after  providing  for  debenture  service,  there  is  ^^26,600  less 
available  at  £^i,yoo.  The  sum  of  ;^i5,ooo  is  transferred  to 
reserve,  and  expended  to  the  extent  of  ;f  14,000  in  the  purchase 
of  debenture  stock  in  accordance  with  the  conditions  of  the 
trust  deed,  and  the  dividend  of  5  per  cent.,  which  requires 
;i'43,Q09  as  before,  is  partly  paid  out  of  the  amount  brought  in 
from  the  previous  year,  the  carry-forward  being  left  ^^26,200 
down  at  j^59,77o.  There  is  no  movement  in  the  balance-sheet 
calling  for  comment,  but  a  more  optimistic  note  is  sounded  in 
the  directors'  report.  The  lands  have  now,  it  appears,  recovered 
from  the  trials  of  the  previous  winter  and  summer.  The  winter 
grasses  are  stated  to  be  excellent,  and  it  is  said  that  the 
F.stancia  manager  has  reported  that  the  company's  normal  posi- 
tion has  been  retrieved. 

ROSSLEIGH,    LTD. 

This  Edinburgh  motor  and  cycle  business  made  exactly  the 
same  gross  profit,  ^11,440,  during  the  financial  year  ended  Sep- 
tember 30  last  as  in  the  previous  period,  but  war  taxation  calls 
'or  £3^$  more  at  ..f  2,135,  so  that  after  setting  aside  a  slightly 
■imaller  amount  to  depreciation  there  is  ^280  less  at  ;f8,88o 
available.  This  is  almost  sufficient  to  maintain  the  distribution 
on  the  ordinary  at  the  previous  year's  rate,  but  shareholders 
only  get  10  as  against  15  per  cent.,  ;£i,ooo  of  the  balance  going 
to  reserve  as  before,  and  ^f  1.440  to  increase  the  carry  forward, 
which  now  amounts  to  ^^  11,800.  Stocks  on  hand  are  ;^  10,000 
down  at  ;<^i3,6oo,  and  cash  is  ;^i2,ooo  up  at  ;^52,ooo.  The 
liquid  position  seems  to  be  quite  satisfactory,  for  against  current 
liabilities  aggregating  ;f  8,000  there  are  trading  assets  amount- 
ing to  ;£64,i7o. 


COMPANY  MEETING. 


GRAND  JUNCTION  CANAL  CO. 


II 

^^H  As  a  result  of  the  building  restrictions  imposed  by  the  Govern- 
I^^Bent  a  considerable  falling  off  took  place  in  the  local  traffic  in 
the  London  district,  and  it  is  chiefly  to  this  circumstance  that 
the  shrinkage  of  ^3,190  in  revenue  is  due.  Fortunately,  how- 
ever, expen.ses  were  ^1,310  down,  and  the  amount  available 
after  providing  for  debenture  interest  and  preference  dividend 
is  consequently  only  /■  1,880  lower  at  j^  14,380.  This  is  not  quite 
sufficient  to  provide  for  the  dividend,  which  is  maintained  at 
3  per  cent.,  ^^2,570  having  to  be  withdrawn  from  the  amount 
brought  in  for  this  purpose.  There  still  remains,  however,  the 
substantial  sum  of  £8fijo  to  go  forward,  and  official  intimation 
has  recently  been  given  to  the  effect  that  during  the  period  of 
control  by  the  Board  of  Trade  there  will  be  a  guarantee  of  nett 
revenue  equal  to  that  of  the  undertaking  for  the  year  1913.  The 
present  dividend  of  3  per  cent,  seems,  therefore,  to  be  likely  to 
be  maintained. 

Angostura  bitter*  (or.  j.  g.  b.  siegert   and  sons), 

LTD, 

A  heavy  setback  has  occurred  in  this  business,  owing  to  con- 
ditions arising  from  the  war.  Restrictions  and  prohibitions  are 
in  force  in  many  countries,  and  difficulties  of  transport  have 
operated  everywhere.  Consequently,  trading  profits  have 
dropped  /g,ooo  to  ^£'15.750,  and  the  nett  are  about  /io,ooo 
tower  at  ^5,700.  The  preference  dividend  is  paid  in  full,  but 
ttie  ordinary,  which  got  6  per  cent,  last  year,  receives  nothing 
this  time,  an<l  the  carry  forward  is  practically  the  same  at 
/2,2oo.  It  is  a  poor  showing,  but  the  company's  business  is 
of  «urb  a  peculiar  type  that  these  vicissitudes  are  inevitable. 


BUKIT   TAMBUN    ESTATES. 

The  second  annual  general  meeting  of  the  Bukit  Tambun 
Instates,  Ltd.,  was  held  on  Wednesday  at  the  offices,  65, 
liishopsgate,  Sir  Gordon  B.  Voules  (the  chairman  of  the  cotn- 
panyl  presiding. 

The  Secretary  (Mr.  E.  F.  Robson)  having  read  the  notice 
calling  the  meeting  and  the  auditors'  report, 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  said  they  had  made  a  profit  for  the  past  year  of  ;^55o, 
as  compared  with  ;^25  in  the  previous  year.  They  had  every 
reason  to  be  satisfied  with  the  yield  of  their  estate.  They  had 
li.arvested  900,000  nuts,  as  compared  with  527,000  in  the  pre- 
vious year,  and  they  had  manufactured  165  tons  of  copra,  all  of 
which  they  had  had  to  dispose  of  locally  at  an  average  price  of 
£1^  13s.  6d.  a  ton.  The  cost  of  production  worked  out  at  £<) 
per  ton,  which  compared  most  favourably  with  the  general 
standard  of  costs  in  the  F.ast.  The  fields  had  all  been  kept 
clean,  and  the  growth  all  round  was  leported  by  their  visiting 
agent  as  most  satisfactory.  Owing  to  the  absence  of  shipping 
iacilities,  it  had  been  impossible  to  secure  any  cargo  space 
whatever  for  their  copra,  notwithstanding  all  their  efforts. 
They  had  made  frequent  representations  to  the  Government 
Departments  concerned,  both  here  and  in  the  Fast,  with  a  view 
to  finding  some  solution  to  the  difficulty.  They  had  also  en- 
deavoured to  find  fresh  markets  in  Japan,  America,  and  Aus- 
tralia, but  they  had  found  themselves  up  against  the  same 
difficulty  of  want  of  shipping.  It  was  very  disappointing  that 
after  bringing  the  estate  to  its  present  condition  they  should  be 
met  withMhis  difficulty  of  lack  of  freight,  more  especially  at  a 
time  when  copra  was  so  urgently  required  in  Fmgland  for  the 
manufacture  of  margarine.  He  felt  sure  that  after  the  war 
there  would  be  a  continuous  demand  for  copra,  and  there  was 
every  reason  to  expect  that  the  company  would  then  enjoy  pros- 
perous times.  The  area  of  the  combined  estates  of  Bukit  Tambun 
and  Sungei  Kechil  was  2,663  acres,  of  which  1,886  were  culti- 
vated and  planted  up  with  nearly  90,000  trees,  and  802  acres  were 
in  bearing.  The  whole  of  the  property  was  either  freehold  or 
held  on  long  leases  of  999  years  at  an  annual  .ent  of  ;f200,*' 
which  worked  out  at  about  is.  7d.  per  acre.  The  estimated 
crop  for  the  current  year  was  over  1,500,000  nuts,  and  it  was 
to  be  remembered  that  less  than  50  per  cent,  of  their  planted 
area  was  as  yet  in  bearing.  The  acquisition  of  the  new  property 
would  be  very  advantageous.  The  view  of  the  board  was  that 
the  larger  the  estate  the  better  it  was  likely  to  pay.  The  board 
hoped  shortly  to  be  in  a  po.sition  to  consult  the  shareholders  in 
regard  to  the  acquisition  of  another  coconut  property  which 
could  be  run  advantageously  with  their  own.  In  the  circular 
issued  to  the  shareholders  in  June  last  with  reference  to  the 
acquisition  of  the  Sungei  Kechil,  it  was  stated  that  they  proposed 
to  increase  the  share  capital  by  ;f45,ooo  to  provide  the  350,000 
new  2s.  shares,  and  to  leave  ^f  10,000  available  for  further  work- 
ing capital.  The  Treasury  would  not  allow  them  to  issue  any 
new  capital  until  after  the  war,  and  as  they  were  not  pressing 
the  sale  of  copra  at  the  present  low  prices,  the  result  was  to 
call  for  remittances  from  this  side  to  pay  for  the  upkeep  of  the 
two  estates.  They  had  made  satisfactory  arrangements  with 
their  bankers  to  provide  such  funds  as  might  be  necessary. 

Mr.  C.  Malcolm  Cumming  seconded  the  motion,  which  was 
carried  unanimously,  and  the  retiring  director  and  auditors 
were  re-elected. 

The  proceedings  terminated  with  votes  of  thanks  to  the  staff 
in  the  East  and  to  the  chairman  and   the  directors. 


OILFIELDS    PRODUCTION. 

Anglo-Egyptian. — For  week  ended  Dec.  30  : — Gemsah,  664  tons, 
against  21  tons  previous  week  ;  Hurghada,  3,549  tons,  against 
5,391  tons  previous  week. 

Bibi  Eibat. — Week  ended  Dec.  24,  662  tons. 

Black  Sea  Amalgamated.     Week  ended  Dec.  29,  310  tons. 

Kern  Rivfr  of  California. — For  Dec,  120,720  barrels  (17,246 
tons),  including  65,139  barrels  from  the  properties  of  the  St. 
Helens  Petroleum  Co. 

Lobitos, — For  Dec,  7,591  tons. 

New  Schibaieff  Petroleum. — For  Nov.  (gross),  5,665  tons.  Net 
3,253  tons. 

United  British  Oilfields  of  Trinidad,  Limited.— For  week  ended 
Wednesday,  Jan.  2,  423  tons. 


i 


SoLTii  Akkic.vn  R.mlw.^vs. — The  railway  earnings  for  the 
week  ended  October  6  amounted  to  ^^291, 613,  an  increase  of 
;^26,684  compared  with  the  corresponding  week  of  last  year. 
Passenger  traffic  contributed  ;f  84,320,  an  increase  of  ,^10,980 ; 
goods,  ^^117,761,  an  increase  of  ;^i6,374;  and  live  stock, 
/'i2,95o,  an  increase  of  £j[,2qo;  while  the  coal  traffic  returned 
^61,968,  a  decrease  of  ^5,660. 

The  court  of  directors  of  the  Chartered  Bank  of  India,  Aus- 
tralia, and  China  have  appointed  Mr.  \V.  K.  Preston  to  be 
manager  in  London,  in  conjunction  with  Mr.  T.  H.  Whitehead 
and  Mr.  Thomas  F'raser.  Mr.  James  Semple  Bruce  has  been 
appointed  sub-manager  in  London. 


48 


^be  Jnvestor^'  IReview. 


January  12,  1918. 


INDUN  RAILWAYS. 


Nam*. 


AsMm  BeoKal       . , 

Barsl 

Bengal  &  N.-W.     .. 

Bengal  Nagpur 

Bombay,  Baroda  .. 

Burma 

Delhi  Umballa       .. 

East  Indian,. 

Gt. Indian  Penin.  ., 

Lucknow-BareiDy, . 

Madras      and        S. 

Mahratta  . . 
Nizam'iGd,  (Broad) 
,,        ,,     (Metrei 
Robilkund  and 

Kuoiaon  .. 
South  Indian 


OIOSS  TRAFFIC  FOII  WB»,  OIlOU  TCAFFIO  TO  DATE. 


Week 
endinf 


Amount 


Nov.    3 


Dec. 
Nov. 
Dec. 


Nov. 


Ra. 

'.13.335 

18,700 

3,28,680 

8,32,000 

14,39,000 

3,68,03 1 

71,100 

31,06,000 

20,04,300 

33.738 

9,50,000 

i,17>3is 

75.301 

,  38,799 
S.75.575 


In.  or  dec. 

on  last     I 

year.      I 


Ra. 

—  28,726 

—  49,300 

—  46,046 
+  1,76,000 

—  1,61,000 

—  14,681 

—  10,008 

—  92,000 

—  3.50.700 
+         850 

+  1.63.434 
+  37.761 
+       4.836 


4.347 
73.377 


AmouDl 


Ra. 

5.94.789 

5,11,200 

15,01,660 

3.'6.43.358 

1,72,61,000 

19,18,384 

12,00,386 

2,97,40,000 

3.30,31,500 

3,01,1" 

52,73,000 
6,96,899 
3.68,778 


'.99.438  4-        15,281 
37.34.214  +     2,90,33} 


t  April  I.  t  October  i. 

TRAMWAY  AND  OMNIBUS.— HOME. 


Dublin  United 
HaatinKA  and  Dlst. . 
Isle  of  Thanet 
Lancishire  United.. 
Provincial    .. 
Yorka.  (Wat.  Rdng.) 


Dec. 21 
Ian.  7 
Dec,  39 
Jan.  3 
..  5 
,.      6 


7,009 
931 

204 
2,817 
3,3'6 
2,388 


457 
133 
60 
703 
250 
453 


£ 
343.393 
931 

3,152 

916 

32,291 

3,288 


33.38s 
133 

1,304 
147 

4,308 
453 


•  From  Oct.  i.  f  From  Jan.  i. 

TRAMWAY  AND  OMNIBUS.-FORfclCN   AND  COLONIAL. 


Alabama  Power  .. 
ADKio-Argentlne  .. 
Auckland  Electric.. 
Brazilian  Traction  . 
Brisbane  Elec.  Inv, 
British  Columbia  .. 
B.A.  Lacroze 
Burmah  Electric  ,. 
Calcutta 
Carthagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &  T 

Hongkong   ,. 
La  Plata 

Lima 

Madras  Electric    .. 

Manila  EUctiic 

Mexico         .. 

Rangoon 

Singapore  Electric 

Toronto 

United  of  Monte  V 

Vera  Cruz    ., 

Winnipeg    , . 


Oct. 
Jan, 
Oct. 
Nov. 
Oct. 
Nov. 


Dec.  29 


Oct. 

Nov.   17 
Dec.     6 
Nov. 
Dec.  31c 
Aug.  8 
Nov.   S 
Dec.    5 
Oct.  37 
Nov.    i 
Dec. 
Sept.  5 
Nov. 


£ 

113,018 
53,008 
32,308 

M7,6g5,ooo 

33.580 

»14I,3C9 

39.679 

Rs. 27,761 

Rs.76,984 

4.424 

13,481 

13.308 

4,605 

16,965 

Rs.  46,046 

65,467 

•  215,256 

5.458 

»'3.357 

*42'<.556 

34,0»5 

56,406 

•86,888 


£ 

+  32,072 
+  1,079 
+  880 

+  M535,ooo 
820 
•31,772 
546 
Rs.937 
Rs.4,506 

2,025 


1,052 

♦  55 

169 

1,998 

Rs. 5,676 

4,667 

•  lo8,66g 

534 

•  260 

•8,751 

3,661 

—     •14,744 


£ 

1.253.083 

53.008 

92,118 

M84131000 

328,430 

•433,464 

189,575 

83,8»4 
Rs.3411818 

49.566 

95.376 

•633,330 

48,962 

159.413 

Rs.847,320 

547.492 

•3,193,106 

54,751 

•  329,661 
•5.032. '76 

65,085 
464,400 

•  748,976 


£ 

+  361.340 
+       1,079 

«t  7,832 
>  M6558000 

—  2,000 
+    •29,134 

—  1,314 
+  Rs.4,844 
+  Rs.      85 

+       '9.776 

—  2,640 

—  »40,243 

—  1873 
+  4,850 
-i-Ps.7q,442 
+         70,625 

—  •197,337 
+  3.509 
+  •l2-,549 
+  •359.133 
+          5,317 

—  »327,782 


628  days.       •  From  Jan.  I       8  Nett.       a  From  July 
FOREIGN   RAILWAYS. 


c  Two  weeks. 


Alcoyand  Gandia., 
Antofagasta  (Cbili) 
Arauco  . .         . . 

Argentine  N.E. 
Bilbao  R.  and  Canta 

BoUvar 

Brazil 

Brazil  Gt.  Southern 

B.  AyreB  &  Pacific 
Do.  Central 
Do.  Gt.  South'n 
Do.       Wescern 

Central  Argentine. . 

C.Ur'g'ayofMts  V, 
Do.  East'n  Ex. 
IJo.North'nEx. 
Do.West'n  Ex. 

Cordoba  Central   . . 

Costa  Rica   . 

Cuban  Central 

Dorada  Extension. . 

Egyptian  Delta 

Entre  Rios  .. 

French  Sante  F<  ,. 

Gt.  Soutb.  of  bpatn 

Gt.West.  of  Brazil- 
Havana  Central     .. 

Inter,  of  C.  Amer... 

La  Guaira  and  Car. 

Leopoldina  .. 

Midland  Uruguay  . . 

Mogyana 

N.W.  of  Uruguay  .. 

Nitrate 

Paraguay  Central  . . 

Paulista 

Peruvian  Corpn     .. 

Salvador 

State  of  Bahia  S.W 

S.  Paulo  itirazilian) 

SorocabaDa.. 

Taltal 

United  of  Havana.. 

West'nof  Havana.. 

Zafraand  Hueiva. . 


Jan. 

Uec. 

Nov. 

Jan. 

Oct. 

Nov. 

Oct. 

Aug. 

Jan. 

Nov. 

Jan. 


Nov. 
Dec. 

Nov, 

Jan. 
Aug. 
Dec. 
Jan. 
Nov. 


Jan. 
Nov. 
Aug. 
Dec. 

Jan. 
Aug. 
De-. 

Nov. 

Jan. 
Uec. 

Jan, 

Nov. 


Ps. 


29 


£ 

6,000 
44.495 
15.000 
9,400 
3.911 
12,000 

M4,209,ooo 

M  1^.38,300 

106,000 

26,190 

135.000 

54.000 

129  000 

15.791 

4.S28 

2,682 

2,562 

37,000 

2,166 

14,243 

8.0O3 

10,177 
15,900 
133,000 

35.737 

17,600 
8,115 

11.712 
6,500 

33,092 

M3,21»,0O0 

*33.ooo 

37  39"' 

2,660 

M4,904,ooo 

81,101,090 

•  l8,8oj 

M 05 ,000 

36.760 

Ma,io/,ooc 

29,108 

56,416 

8,079 

l°j538 


Ps. 


— Ps.  3,570 

135 

+        3, .500 

+        3, coo 

1,426 

+        4,820 

M3o8,i7i 

M3.080 

14,000 

3379 

28,000 

11,000 

35,000 

1,127 

323 

82 

832 

'3.320 

2,643 

3.385 

300 

1,693 

5,ouo 

29,099 


+ 

^ 

+ 

— PS40,904 

+ 
+ 
+ 


4,300 
1.493 
5.238 

—  500 

+         12,503 

4-  1,407 
+  M526,674 
+  #8,388 
+  8,165 
+  900 

+  Mtl27274 
f  8110,348 

—  $12,300 

—  M45,ooo 

+  15.054 
+  M224.206 
+  '3.306 
+      11,429 

+      1.434 
403 


£ 
Ps.    6,000 
3,236,935 
117.500 

213,000 

35.861 
55,005 

M  40607000 

■v  325,937 

1,939,000 

113,973 

3.558,705 

1,  96,000 

2,381,300 

475.998 

127.499 

80,753 

54.903 

803,680 

61 ,644 

311.292 

98,700 

'62,393 

353.3OO 

900,336 

Ps4204,77y 

13,000 

I4*.563 

340.451 

80,500 

23,366 

67,448 

Ml4591,cyjo 

•  159,682 

775.305 

77,300 

u 19990,000 

S  6,083,370 

•450,836 

M  1,021,000 

36,760 

M  16,988 

150,436 

1,085.031 

191.786 

133,830 


-Ps.  3,570 

+  390,975 

+  3 1 ,200 

+  34.39S 

—  10.946 
+  18,501 
+  M4574592 
+  M43,467 

—  354,000 
4-  14,323 

—  304.549 

—  302,000 

—  590  000 
+  '35,687 
+  8,905 
+  32,97, 
+  3.534 

—  6.035 

—  44.675 
♦•  71,787 
+  7,500 
+  28,493 
+  44,500 
+  173.429 
+  PS343,545 


•  Months,  t  Froiu  Jao  i     t  From  Ju'y  1.    c  Nett.    6  15  days 
COLONIAL  RAILWAYS. 


2  950 

2o,9»8 
34.242 
4,750 
7,848 

V.  ''■"=' 
M40.707 

•  13092 

92.608 

7,580 

+  Mi72,ooo 

+  S  582,778 

-  «98,759 

—  M66,ooo 

+  .,  '5.054 
+  Ml  735205 
+  38  »95 
4-  3.8, ga2 
+  38,261 
3.333 


a  zo  days. 


Beira 

Canadian  Northern 
Canadian  Paci&o  .. 
Gr.Trk.  Main  Line 
Gr.Trk.  Western.. 
Petroii  G.  H.&M. 
Or  TkPac  Prairie  Sc 
Mashonaland 
Mid.  of  Westn.  Aus 
New  Cape  Central.. 
Rhodesia 


Aug. 
Dec. 

31 

Jao. 

Dec. 

31 

sep. 
Oct. 
Nov 
Sept 

17 
'c 

'  Months. 


£ 

•865, 

»3.679, 
173, 

36, 
12, 
39 
47, 
7i 
3 

7S, 


£ 

—  12,387 

—  •t.too 
+  (614,000 
+        7.384 

3.802 
3.003 
7.018 
9,630 
931 
573 
11,622 


:  July  I.         i  Jan.  1. 


TF 


706,175 
•21,856,800 
•  153245,100 

173,388 

36,0  o 

12,832 

762,176 

47,670 
35.356 

«i,374 
^,011, 76» 

rom  Oct.  J. 


£ 
+  ,    4.397 
+  8225,300 

4- •12515000 

<-  7.284 

+  3.801 

+  2.003 

«-  266,018 

-  9630 

4.  1,307 

4-  13.277 

>  78.613 


MONTHLY    STATEMENTS. 


NEXT  EARNIMOS  F0«   MONTH. 


MoDtb. 


Amount. 


In,  or  Dec. 
on  last  year 


NETT  EARHIIiasTO  DATE. 


Amount. 


In.  01  Dee. 
on  last  yeai 


Atohlaon  T.  ft  S.  Pi 
Atlantic  Coast  Line 
Baltimore  &  Ohio  .. 
Canadian  Northern 
Canadian  Pacific  ., 
Chesapeake  ft  Ohio 
Chicago  &  N.W.  .. 
Chicago  Burl,  ft  Q. 
Chicago  G.W. 
Chicago  Mil.  ft  S.P. 
Chicago,  Rock  I.&P. 
Colorado  ftSoutbern 

Cuba 

Delaware  ft  Hud.  ., 
Denver  ft  Rio  Gran. 

Erie 

Gr. Tr.  Main  Line.. 
Grand  Trunk  Westn 
DetroitG.H.&Mil.. 
Qt.  Northern 
Illinois  Central 
Kansas  City  Soutbn. 
Lehigh  Valley 
Louisville&Nashvl. 
Minn. S.P.  (Soo){  .. 
Miss.  K.  ft  Texas  .. 
Missouri  Pacific  .. 
New  York  Canl.&H. 
N.V.N.  Haven  ft  H. 
New  York  Out. ft  W. 
Norfolk  ft  Western. 
Northern  Pacific  , , 
Penosyivania  East 
and  West  Lines.. 
St.  Louis  &  San  F. . 
Seaboard  Air  Line.. 
Southern 

Southern  Pacific  .. 
Union  Pacific  ., 
Wabash 


Nov. 
Sep. 
Nov. 


Nov. 


Oct. 


Dole. 

4,JOO,000 

757.000 
1,918,000 

754.700 
5,358,000 
1,303,000 
3,747,000 
3,943,000 

355.000 
'.599.000 

3,138,000 

536,000 

89.465 

489,000 

839,00c 

1,246,000 
^86,200 

''f'5,650 

ft£6l,7oo 

3,684,000 

1,852,000 

351.000 

737,000 

1,583,000 

1,943,000 

936,000 

3,312,000 

5,66<,oo« 

1,875,000 

150,00c 

1,991,000 

3,147.000 


[      Dola. 
[—1,062,000 
+    132,000 

—  1 ,050.000 

—  495.300 

—  3o6,'..oo 

—  91,000 

—  527.000 
—1,365,000 

,  178,000 
1,525,000 
224,000 
116,000 
56.433 
346,000 
341,000 
393,000 

—  £128,600 
^1.950 
£1,100 

903,000 
135.000 
77.000 
474,000 
403,000 
394,000 
170.000 

113,000 

15,000 

133,000 

27,000 

135.000 

123.000 


8.433.000  —1,600,000 
1,875,000  +  33,000 
744,000  '+  61,000 
3.104,000  4-  671,000 
7.077,000  ji- 1,673,000 
3,961,000  I—  66a, 000 
1,214.000  [ —    134,000 


I  Dole. 
If  44,686,000 
9  I  8,260,000 
II  j  38,707.000 
II  I  3,369.800 
"  43.635,00c 
10  11,661,000 
10  I  33,330,000 
10  I  39,640,000 
3,193,000 
17,397,000 
17,385,000 
4,875,000 
671.375 
5,491,000 
6,580,000 
9,340,000 
£'.907.300 
£35.450 
£67.700 
,  19,880,000 
10  I  16,073,000 
'o  I  3,756,000 
10  8,613,000 
'o  1  13,653,000 
10  '  8,097,000 
6,430,000 
7,735.000 
42,110,000 
18,128.000 
3,019,000 
16,570.000 
34,533,000 


81, 101,000 

7,264,000 
6,113,000 
9,324,000 
51,111,000 
39.694.000 

10,269,000 


4 
10 

10  I 


Dola. 

—  1,188,000 
4-      337,000 

—  3,260,000 

—  2,302,500 

—  2,830,000 

—  1,363,00a 
3,035,000 

—  1,925.000 
836,000 

—  4.550,000 

—  3,eci,ooo 
4.     602,000 

—  180,133 

—  1,130,000 

—  1,1x9,000 

—  6,369,000 

—  £627,900 

—  £361,400 
£99,900 

—  3,187,000 
4-  2,999,000 
4-      583.000 

—  2,034,000 

—  658,000 

—  3.057.000 
4-  2,171,000 
4-  2,241,000 
—11593,000 

—  1,057,000 
45,000 

—  8,375,000 

—  156,000 

— 13218,000 
4-  1,447,000 
4-   304,000 

4-  1,748,000 
4-  8,2^4,00* 

—  2,312,000 

—  166,000 


§  Includes  Wisconsin  Central.    *  Groas  earainga.    t  Surplus.    6  Deficit. 


Sir  David  Paulin,  for  37  years  manager  of  the  Scottish  Life 
Assurance  Co.,  will  retire  next  month,  and  join  the  board  of 
directors.  Mr.  l.ewis  P.  Orr,  P'.F.A.,  F.R.S.E.,  presently 
secretary,  will  succeed  him  as  manager.  Th«  actuary,  Mr. 
Alexander  Fraser,  F.F.A.,  F.I. A.,  becomes  secretary  and 
actuary,  and  Mr.  William  Balfour,  J. P.,  becomes  agency 
secretary. 


FINANCIAL  ADVICE. 


You  can  always  obtain  gratis  the 
best  advice  regarding  your  stocks 
and  shares  through  the  medium  of 
the  .Answers  to  Correspondents 
column  of 


^k. 


which  has  the  largest  circulation 
of  any  financial  daily  newspaper 
in  the  world. 

You  should  remember  that  The 
Financial  Times  criticises  "without 
fear  or  favour"  every  prospectus 
that  is  issued,  whether  advertised 
in  its  columns  or  not. 


72.  COLEMAN  STREET,  LONDON,  E.C. 


Telephone : 
3436  London  Wall 


Teteframs : 
**FiDantimo,  London. 


Vvinted  by  the  St.  Clements  Prkss,  Ltd..  Portugal  Street,  Kingsway.   London,  W.C,  for  the  Proprietor  of  The  Investors'  Review,  and  Published 
by  The  Proprietor,  Norfolk  House,  Noriolk  Street,  Strand,  W.C.  a.— January  la,  1918.  (N  1893 


XLbc 


5n\>e6tot0'  IReview 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


Vol.XLI.— No.  1,046.] 

NEW  SERIES. 


rRt^iatarad  as  »r\ 
L   newipkper.    J 


SATURDAY,  JAN.  19,   1918. 


[Price  6d. 


CONTENTS. 


Passing  Events: — National  War  Bond  Sales  —  Revenue  — 
Sell  Watches  and  Jewellery  and  Buy  War  Bonds  — 
Mr.  G.  N.  Barnes  on  the  War  Cabinet  —  Coal  Mines 
Control  Bill  —  Argentina's  Tax  on  Exports  —  Chinese 
Finance  —  Banks :  Barclay's  —  Ireland  —  London  County 
and  Westminster  —  Union  of  London  and  Smiths  — 
Parr's  —  London  Joint  Stock  —  London  and  South- 
western—  London  and  Provincial — -Williams  Deacon's  — 
Manchester  and  Liverpool  District  —  New  South  Wales  — 
National  Discount  —  Manchester  and  County  —  Lancashire 
and  Yorkshire  —  Sheffield  —  African  —  Australian 
Pastoral  —  Lennards  —  Gold  Production  in  1917  — 
Labour's  Address  to  Russian  Workmen  —  Frederick 
Hotels  (pp.  51-7). 

Leading  Articles: — Our  Foreign  Trade  in  December  —  Peace, 
Peace,  when  there  is  no  Peace  —  Premium  Bonds  and 
Misplaced  Religiosity  —  By-the-Way  War  Notes  —  The 
Russian  Kaleidoscope  —  Tribunali  and  Men  (pp.  57-61, 
67-8,  and  69-70). 

Money  and  Credit  Notes  : — Effects  of  Lower  Treasury  Bill 
Rates  —  Bank  Return  —  Exchange  Fluctuations  —  Russian 
Coupons  and  Treasury  Bills  —  War  Savings  Certificates 
Concession  —  Silver  (pp.  63-5). 

The  Week's  Stock  Markets  (pp.  65-6). 
London  Produce  Markets  (pp.  66-7). 


American  Business  Notes  : — Proposed  Boycott  of  Germany  — 
Attitude  of  Chambers  of  Commerce  (pp.  68-9). 

Insurance  News  :— Century  —  Retirement  of  Sir  David  Paulin  — 
Investments  in  British  Government  Securities  —  Salvation 
Army  Assurance  Company  (p.  69). 

Mining  News ;— Transvaal  Gold  Production  —  Native  Labour 
Returns  —  Eastern  Smelting  —  Zaaiplaats  Tin  —  Rand 
Mining  Leases  (p.  70). 

Tea,  Oil,  and  Rubber  :— Rubber  Market  —  Board  of  Trade 
Returns  —  Anglo-American  Oil  Co.  (p.  72). 

What  Balance  Sheets  Tell :— Provincial  Bank  of  Ireland  — 
National  Bank  —  Munster  and  Leinster  Bank  —  Halifax 
Commercial  Banking  Co.  —  Nottingham  and  Nottingham- 
shire Banking  Co.  —  Loders  and  Nucoline  (p.  73). 

Company  Meeting :— Frederick  Hotels  (p.  73). 

The  Week  in  Mines  (p.  70). 

Mining  Returns  for  December  (p.  70-1). 

Dividends  Announced  (p.  71). 

Oilfields  Production  (p.  71). 

Public  Income  and  Expenditure  (p  72,'. 

Answers  to  Correspondents  (p.  73). 

December  Rubber  Outputs  (pp.  74-5). 

Traffic  Returns  (p.  75).  •" 


CAN^ADA. 


THE    BANK   OF 
BRITISH    NORTH    AMERICA. 


Establishtd  1836. 


INCORPORATED  by  ROYAL  CHARTER  1840 


PAID-UP  CAPITAL     ..£1,000,000.  RESERVE  FUND     ..  £610,000. 

Head  Office:— 5,  GRACECHURCH  STREET,  LONDON,  E.G.  3. 

Court  0/  Diyeciors. 
Lt.-CoI.F.R.  S.BALFOUR.  Lieut.  E.  GEOFFREY  Hon.  A.  R.  MILLS,  M.P. 
J.  H.  BRODIE.  HOARE.R.N.V.R.    Major C.  W.TOMKINSON 

I.H.MAYNECAMPBELL.    F.LUBBOCK.  G.D.WHATMAN. 

E.  A.  HOARE. 

Npoiiti  reoeivad  at  rates  which  may  be  obtained  on  application. 


Bills    of    Exchange    negotiated. 
Dividends    and    Coupons    collected. 
Purchase    of    Stocks    and    Shares. 

ALL      KINDS      OF      BANKING      BUSINESS    TRANSACTED. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporattd   by   the   Special   Charter  of  the   Imperial 
Japanese  Government,  1899. 


HEAD  OFFICE 


TAIPEH,   FORMOSA. 


BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  tawns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  Limited.  Incorporated  1880. 

Authorised  and  Issued  Capital,  £6,000,000. 

Paid-up  Capital,  £2,000,000  ;  Reserve  Fund,  £1,980,000 ;  together    £3,960,000 

Reserve  IiiabOity  of  Proprietors 4,000,000 

Total  Capital  and  Reserves £7,980,000 

HEAD  OFFICE   -        -        -        71 ,  CORNHILU,  LONDON,   E.C  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Australian 
States  and  Dominion  of  New  Zealand. 

TELBGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  are  received  fcr  fixed  periods  uu  terms  which  muy  bu  ascertained 
ou  application. 


THE  TRUSTEES  CORPORATION 


(LIMITED). 


CAPITAL 


£1,050,000. 


The  first  Corporation  founded  in  the  United 
Kingdom  to  act  as  Executor  and  Trustee  of  Wills 
and  Settlements. 

Trustees  (or  Debenture  Isaacs. 

Agents  for  Foreign,  Colonial  and  Municipal  Loans. 

Bonds    granted    to    Receivers    and 
Administratori. 

Leasehold  and  Sinking  Fund  Policies  issued. 


Pamphlet  sent  on  application  to  the  Secretary  at  the  Head  Office. 


Safe  Deposit  and  Halls  for  Meetings  at 
Winchester  House. 


WINCHESTER    HOUSE,  OLD  BROAD  ST.,  LONDON,  E.C. 2. 

Liverpool  Branch  and  Safe  Deposit :  2,  Exchange  Street  East. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital   £4,000, 000 

Paid-up  Capital 1 ,800.000 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mcndoza,  Concordia,  Bahia 
Blaoca,  Cordoba,  Tucuman,  Parana,  Barracas  (Buenos  Aires),  Onee 
(Buanos  Aires),  Boca  (Buenos  Aires),  Calle  Santa  F6  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires).  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agency),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro,  Sao  Paulo,  Santos,  Per- 
nambuco,  Para,  Bahia,  Victoria,  Curityba,  Manaos  (Agency).  CHILI — 
Valparaiso,  Santiago.  FRANCE — Paris  (16  Rue  Hal6vy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negetiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


UNION      BANK     OF     CANADA. 


Incorporated  1865. 


Head  Office:  WINNIPEG. 


PAID-UP  CAPITAL 

RE5T   AND    UNDIVIDED    PROFITS 
TOTAL   A55ETS    EXCEED 


$5,000,000 

$3,600,000 

8100,000,000 


The  Bank  has  over  300  Branches  in  Canada,  and  Agents  in  the  principal 
cities  in  Amerioa.       General  Banking  Business  Conducted. 

Dttposits  Received  for  fi.\ed  periods  at  favourable  rates,   which  may  bi 
ascertained  on  application  to 

London  Offloes  :  B,  PRINCES  STREET,  E.C.  2,  and  26.  HAVM^RIUT,  S.W.  1. 


Now  York  Agency :  49.  Wall  Straet. 


so 


ttbe  Jnvestora'  Ifteview. 


January  19,   igi8. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office  1  15,  Gracecliurch  Street,  London,  E.C.  3. 


INSURANCE. 


Capital  Authorised 
Capital  luued 
Capital  Paid  Up  ... 
Reserve  Fund 


£1,500,000 

1,125,000 

562,500 

600,000 


Branches  t 

INDIA.   BURMAH,  CEYLON,    STRAITS    SETTLEMENTS 

CHINA.    AND    PORT    LQUIS,    MAURITIUS. 

The  DanJ<  buys  and  sells  Bills  of  Exchange,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  East,  on  terms  to  be  had  on  application. 
DSP08IT8  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 
periods  on  application. 
Oo  ourrttnt  aooounts  interest  is  allowed  at  2  per  cent,  per  annum  on 
.   daily  balances. 


TifE  vYOKOHAMA   SPECIE   BANK,   LIMITED. 

,  .i.!i;'  (Registered  in  Japan.) 

.1.'  ESTABLISHED    1880. 

Bnbsoribed  Capital        Yen  48,00l},000 

Capital  Paid  Up Yen  36,000,000 

ReseFTe  Fund  ..        ..  ..    Yen  22,100,000 

Head  Office:  YOKOHAMA. 
Branches  and  Agencies  at 
6ombay.  Honolulu.  New  York.  Singapore 

Ctlcutta.  Hong  Kong.  Osaka.  Sydney. 

Changchun.  Kobe.  Peking.  Tientsiu. 

Dairen  (Dalny).  Los  Angeles.  Ranguon.  Tokyo. 

Fengtien  (Mukden).       Lyons.  San  Francisco.  Tsinanfu. 

Hankow.  Nagasaki.  Seattle.  Tsingtau. 

Harbin.  Newchang.  Shanghai. 

The  Bank  buys  and  receives  tor  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  transacts  General  Banking  Business. 
Dspesiti  received  for  filed  periods  at  rates  to  be  obtains  1  on  applicaticn. 
London  OtEce  :  7,  BISHOPSGATE.  E.C.  2. 

K.  TATStJMl,  Manager. 


FARROW'S  BANK 

Incorporated  under  the  J  tint  Stock  Companies  Acts..  LIMiTED 

Autkorited   Capital,  £1,000,000.  Sharei  Itaued.  700.000. 

Shareholders,  4,000, 

Chairman     -       -       -       .  Mr.  Thomas  Farrow. 

EVERY   DESCRIPTION   OF  JOINT 
STOCK  BANKING  TRANSACTED. 

CURRENT    ACCOUNTS    opened     and    interest    paid    where 

approved  Credit  Balances  are  maintained. 
DEPOSIT    ACCOUNTS.    Interest  paid  according  to  notice  of 

withdrawal. 

Write   or  call  for  Special  BooKlet  to 

HEAD    OFFICE: 

1,  CHEAPSIDE,  LONDON,  EC 2. 

73  Branches  throughotU  the  United  Kingdom. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

Hud  OSc*— 71  Old  Bioad  Street,  E.C. 

Subscribed  Ciplt.1         «1.278.747  10  O 

PaidupCaptial 669,685  0  O 

Reserve  Fund  and  Undivided  Profits         ..           375  680  1  1  8 

REM^^TNCEs"rdl'S°LE      '^         -  ^°^'^^^    '°    ° 

"^'^i^^l.lfl'Af^rs^  '^'^^'^'^  ""  CIRCULAR  NOTES  issued  upon 

5hiffs?TsTFrRTv^n9°'^'*^f"  "«.  ""'  'or collection. 

-?     „  .•     r       '^?"J°'',P*"°<'«  »°<I  »«  "«e»  "hie'i  mey  be  asoertaiasd 
S3.h  Am5^?,°'  ""*    '^''"■'«"   of   e»«'y  description   condioted 


THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 
Paid-up  Capital    ..    flSSO.OOO    0    0     25,000  Shares  of  £10  e.ich. 
Beaerre  Fund  . .     . .  £700,000    0    0  i  Reserve  Proflti    . .  Xie.OSS 

Reserveo  Uabllltr  of  Shareltolders  £U0,000. 

Uufts  Iseiied,  Kemittances  cabled.  Bills  negotiated  or  collected,     Deposits 

reeetved  for   fi««d  periods  at  rates  10  oe  ascertained  on  application,  and  all 

IjMiMae  and  eicbange  buainees  c«aiieclcd  with  Western  Australia  conducted 

tlventfb  Hn  London  Adents.  Ths  Bank  of  Adelaide,  II,  Leadenhall  St.,  E.C  3 


DON'T    CASH   YOUR 
VICTORY  LOAN  DIVIDEND. 

£2  10s.  Dividend  will*  double  your 
holding  of  War  Stock  and  produce 
£100  new  money  for  the  War. 

Write  for  particulars  to  Prudential 

Assurance  Co..  Ltd  ,  142,  Holborn 

Bars,  E.C.  1,  or  to  any  of  its  Agents. 

ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head   Office:  BARTHOLOMEW  LANE,  T.  .XDON.  E.G.  2. 


ASSETS    EXCEED    e24,OOC  .OOO. 

Chairman  ■ 
The    Hon.    N.    CHARLES    ROTHSCHILD. 


The  operations  of  the  Company  embrace  all  branchej 
of  Insurance. 

Full  information  respecting 

ESTATE    DUTY   and 

CHILDREN'S  EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  application 
to  the  Head  Oflflce  as  above, 
OP  to  any  of  the  Office^  op 
Agencies    of    the    Company. 

O.  MORGAN  OWEN.  General  Manager. 

NOTICE. 


CITY  OF  TOKYO  5  PER  CENT.  STERLING  LOAN 
OF  1906  FOR  £1,500,000. 

NOTICE  IS  HEREBY  GIVEN  that  the  COUPON  due 
1st  February,  1918,  will  be  PAID  on  and  after  that  datft 
(Saturdays  excepted),  bet%veen  the  hours  of  11  and  3,  by  the 
Yokohama  Specie  Bank,  Limited,  where  lists  may  be  obtained. 

Coupons  must  be  left  three  clear  days  for  examination  prior  tO' 
their  payment. 

For  the  Yokohama  Specie  Bank,  Ltd., 

K.  TATSUMI.  Managpr^ 

7,  Bishopsgate,  E.C, 

17th  January,  191S. 

tibc  Snvestore^  IReview, 
SCALE  OF  CHARGES  FOR  ADVERTISEMENTS. 


PROSPECTUSES. 

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DIVIDEND    NOTICES,    &C. 
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BANKS    AND    INSURANCE    COMPANIES. 

Front  P.nge  (cover)  facing  Money 

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Discount  for  Series. — 5%  for  Thirteen,  10"u  for  Twenty  six, 
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"INVESTORS'  REVIEW,"   Norfolk   Housb,  Norfolk  Sir«et,  Strand. 

LONIJON,    W.C. 


tCbc  5nveetore'  IReview, 


Vol.  XLI.— No.  1,046. 


SATURDAY,  JAN.  19,  1918. 


C-CTap".')  Price  6a. 


I 


PUBLISHER'S    NOTICES. 

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on  the  following  terms  : — 

One  Vear,  £1  Ss.  Od.    Six  Months,  r2s.  6d.    Three  Months,  6s.  6d, 

For  the  Colonies  and  Abroad  the  charge  is 

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Short  of  Three  months  thf   Price  is  ejd.  per  Copy  Inland,  and 

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Telephone  No. : 
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Telegraphic  Address ; 
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muaications. 

Letters  from  correspondents  must.  In  every  case,  be 
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made  tor  the  Insertion  of  reports  under  the  beading  of 
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for  statements  made  therein. 


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number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  kept,  as  securities  cannot  be  named  with  comments  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issue 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  iu  advance,  a 
Key  to  the  previous  week's  replies  will  be  sent  early  in  the 
following  week. 

Deposits  of  "  Query  Money  "  may  be  made  in  advance,  and  will 
be  acknowledged  in  the  "Answers"  column.  Notice  o 
exhaustion  will  also  be  given  there. 

Teleg>*anns  advising  about  new  securities  cost  HRlf-il> 
Gpown  each,  plus  cost  of  the  telegram. 

Private  Letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
Shillings,  but  for  this  three  questions  will  be  answered  if 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Half-a-Crown  per  question. 

Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  on  terms  varying  according  to  the  time 
taken. 

Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


Passing   Events. 


Better  and  better  grows  the  product  of  the  National 
War  Bond  campaign,  and  cities  and  towns  throughout 
the  country  are  emulating  each  other  under  stimulus  of 
the  tank  and  other  daring  advertisement  devices,  as  to 
which  shall  subscribe  the  most.  (Glasgow  is  making 
a  strenuous  effort  to  put  London  to  shame,  and  pos- 
sibly this  rivalry  may  cause  the  influx  of  money  to  go 
on  much  longer  than  it  otherwise  might  have  done.  At 
any  rate,  for  the  past  week  the  subscriptions  to  the 
Bank  of  England  issue  beat  all  records  at  ;633' 172,946, 
and  that  sum  was  subscribed  by  22,970  buyers,  which 
brings  out  the  average  subscription  at  about 
;£•  1)445-  The  total  number  of  subscribers  is,  therefore, 
now  245,396,  and  the  aggregate  amount  they  have 
handed  to  the  Treasury  ;^"253,890,o64.  P'or  the  Post 
Office  issue  there  was  also  27,200  applicants,  who 
subscribed  for  ;£'968,ooo,  making  the  total  number 
of  applications  through  that  channel  528,000  up 
to  the  end  of  last  week,  and  the  total  amount 
furnished  ;^'i  2,584,000.  Also  the  week  seems  to 
have  been  a  record  one  for  War  Savings  Certificates, 
for  2,385,241  were  disposed  of,  making  the  aggregate 
sold  to  date  139,714,562  fiifteen-and-sixpences.  The 
week's  addition  to  the  cash  from  this  source  was 
;^''>843.562,  and  the  aggregate  ^£,'108,279,000.  Appa- 
rently, as  Mr.  G.  A.  Sutton,  the  Director  of  Publicity 
of  the  War  Savings  Committee,  a  very  smart  man  in- 
deed in  the  art  of  producing  telling  and  stimulating 
advertisements,  says,  there  were  several  causes  tending 
to  produce  this  fine  result,  the  principal  one  being  the 
reduction  of  interest  on  Treasury  bills.  Next  to  that 
came  the  Tanks,  which  last  week  brought  in  nearly 
;£'9,ooo,ooo  by  the  sale  of  National  War  Bonds.  We 
hope  this  success  will  go  on,  and  improve  if  possible, 
for  notwithstanding  the  recoil  in  the  outpourings  from 
the  Treasury  last  week,  the  necessities  of  the  Govern- 
ment will  for  many  months  to  come  absorb  everv 
shilling  obtainable  from  no  matter  what  source. 

Last  week  the  disbursements  on  supply  were  onlv 
j£'34)095.432,  and  the  total  Exchequer  payments  under 
all  heads  came  to  only  ^35,163,000.  This  was  as  near 
as  may  be  ;£r5,023,ooo  per  diem,  and  supply  alone  came 
to  no  more  than  ;£r4, 87 1,000  a  day.  We  only  wish 
these  figures  could  be  relied  on  to  continue,  but  that 


would  be  to  expect  too  much.  It  may  be,  however,  that 
the  committee  to  be  appointed  to  overhaul  all  channels 
of  public  expenditure  will  succeed  in  restraining  the  ex- 
travagance and  incompetent  handling  of  means  so  con- 
spicuous everywhere.  Also  we  trust  that  something 
like  an  overhaul,  weeding  out,  and  pruning  down  of 
the  redundant  personnel  now  mobbed  together,  one  may 
say,  in  all  departments  will  be  seriously  taken  in  hand. 
That,  for  instance,  was  a  curious  excuse  given  for  the 
abandonment  by  the  Government  of  that  really  shock- 
ing design  to  turn  the  British  Museum  into  a  rendez- 
vous for  "  flappers,"  or,  in  other  words,  into  the  centre 
of  the  .'Vir  Board's  operations.  By  looking  into  the 
matter,  the  public  was  blandly  told,  it  was  found  that 
the  Department  could  do  with  only  half  the  staff  it  had 
been  endowed  with.  Are  there  many  other  depart- 
ments of  which  the  same  thing  might  be  said? 
Probably  there  are,  and  certainly  one  of  the  essentials, 
the  one  effective  agent  in  helping  us  to  final  triumph 
in  the  war,  is  thriff  in  the  outlays  of  money.  Most  of 
those  that  have  been  drawn  or  hustled  into  the  public 
services  do  not  understand  this  imperative  in  the  very 
slightest.  To  the  majority  the  only  thought  seems  to  be 
"  how  much  money  can  I  get  out  of  the  Government?  " 
They  talk  of  money,  and  of  spendings  in  this  and  the 
other  direction,  with  a  perfect  unconsciousness  of 
what  money  means  and  of  the  sources  from  whence  the 
Government  draws  it. 


lieturning  to  the  figures,  we  find  that  revenue  froin 
taxation  and  State  monopolies  wa.s  last  week 
;£i^20, 370,286,  and  that  of  this  figure  ro  less  tfean 
^16,279,000  came  from  excess  profits  duty,  including 
munitions  levy  and  property  and  income-tax,  including 
super-tax.  The  amount  received  from  income-tax 
alone,  with  super-tax,  came  to  jQi2foT,b,ooo,  and  other 
sources  of  revenue  were  more  or  less  insignificant, 
although  estate  duties  did  contribute  ;^844,ooo  and 
Customs  ;^"i,579,ooo.  The  total  expenditure,  however, 
was  ;£^io8,67i,ooo.  That  was  a  decline  of  nearly 
;^i2,ooo,ooo  on  the  previous  week's  total,  but  still  an 
amount  much  in  excess  of  the  actual  revenue.  Then  the 
Government,  in  addition  to  finding  ;£'So3,293  for  in- 
terest on  war  debt  and  ;^264,i94  to  meet  miscellaneous 
demands,  had  to  repay  ;£5'47,704,ooo  of  due  Treasury 
bills  and  ;^24, 500,000  of  temporary  advances,  besides 
;^5 16,264  on  account  of  "  other  "  war  debt.      It  found 


52 


Zbc  Jnvesiors'  TRev^iew, 


January  19,  1918 


li_ 


this  money  by  the  help  of  ^'20, 149,000  received  from  the 
sale  of  War  Bonds,  by  the  issue  of  ;^64,o88,ooo  of  new- 
Treasury  bills,  by  ;^2,6oo,ooo  proceeds  of  sales  of 
War  Savings  Certificates,  and  ;^'2, 660,000,  the  product 
of  "  other  "  war  debt.  One  or  two  other  small  items 
enter  into  the  mixture,  bringing  up  the  total  receipts 
of  the  week  to  ^'109, 960,247.  As  these  exceeded  the 
payments  by  ;^i, 289,339,  that  difference  was  added  to 
the  Exchequer  balances,  raising  them  to  ;^.  17,673, 163. 


We  have  observed  that  amongst  the  many  expedients 
upon  which  the  benevolent  amongst  us  have  fallen  in 
order  to  raise  funds  are  gifts  of  jewels,  old  plate,  curio- 
sities of  all  kinds,  heirlooms  and  gold  oddments  of 
every  sort,  now  being  accumulated  to  be  offered  for 
sale  by  Messrs.  Christie,  the  proceeds  to  go  to  the 
British  Red  Cross  Society  and  the  Order  of  St.  John. 
Daily  lists  are  now  issued  by  some  of  the  newspapers, 
and  show  that  the  number  of  people  who  give  gene- 
rously is,  one  might  say,  inexhaustible,  and  this  has  set 
us  thinking.  Some  long  time  ago  it  vi'as  suggested  in 
these  columns  that  the  Government  might  draw  a  large 
amount  of  now  useless  gold  into  the  Treasury  if  the 
people  could  be  induced  to  hand  over  their  gold  watches 
and  chains,  with  ornamental  possessions,  now  wearing 
away  in  daily  use.  There  are  plenty  of  other  articles  in 
daily  use,  such  as  gold  cigarette  cases  and  dress  orna- 
ments of  all  kinds,  which  could  well  be  spared.  Nothing 
came  of  that  suggestion,  so  far  as  we  evei-  saw,  and 
when  it  was  put  to  the  test,  as  it  has  been,  there  was 
no  room  for  surprise  that  it  had  not  "  caught  on."  The 
Bank  of  England's  statutory  price  for  standard  gold — 
that  is  to  say,  for  i8-carat  gold — is  £^  17s.  gd.  per 
oz.  That  is  its  minimum  price.  In  times  of  pressure, 
when  it  may  be  necessary  to  buttress  banking  credit 
with  gold  in  the  face  of  adverse  exchanges,  the  price 
may  be  more,  but  it  is  forbidden  by  statute  to  be  less. 
Against  this  minimum  the  price  of  standard  gold  paid 
by  the  retail  bullion  dealers  and  pawnbrokers  is  only 
;^3  per  oz.  These  traders  consequently  put  them'- 
selves  in  the  position  to  nett  a  profit  of  17s.  gd.  per 
oz.  on  the  i8-carat  gold  they  buv,  and  the  man 
who  might  desire  to  turn  his  gold  watch  and  trinkets  into 
War  Savings  Certificates,  say,  or  into  National  Bonds, 
finds  that  he  was  mulct  to  the  extent  of  nearly  one- 
fourth  of  the  value  in  his  attempt  to  do  so.  Would  it 
not  be  possible  for  the  Government  to  intervene  and  do 
away  with  this  robbery  ?  It  is  not  called  upon  to  pass 
a  law  after  the  manner  of  Sir  Albert  Stanley's  Non- 
Ferrous  Metal  Bill — a  measure  which  looks  to  us  more 
of  a  futility  the  more  it  is  discussed— all  that  should 
be  necessary  is  for  the  Treasury  or  the  Bank  of  England 
to  come  to  an  arrangement  by  which  certain  gold-buying 
dep6ts  would  be  opened  or  dealers  appointed  whose 
luisiness  it  would  be  to  act  as  buyers  to  the  Bank  at 
prices  which  would  secure  a  reasonable  payment  to 
them  for  their  trouble  and  at  the  same  time  be  a  just 
compensation  to  the  seller.  The  idea  seems  to  be  worth 
consideration,  for  when  the  fashion  of  the  tanks  and 
big  advertisements  has  worked  itself  out  a  new  scheme 
will  be  required  to  draw  savings  from  the  people, 
perhaps  half-a-dozen  schemes,  before  the  war  is  done 
With.  For  the  sake  of  our  growing  fiduciary  note  circu- 
lation in  the  form  of  Treasury  notes  alone,  we  think  it 
w-ould  be  advisable  to  take  active  steps  now  in  order  to 
bring  the  idle  and  wasting  gold,  of  which  manv 
millions  must  now  be  in  the  hands  of  the  people,  into 
use  as  active  agents  in  the  maintenance  of  our  credit. 


'  If  I  had  been  a  dictator  at  the  beginning  of  the 
war,  I  would  have  paid  workmen  according  to  results." 
So  said  Mr.  G.  N.  Barnes,  M.P.  and  War  Cabinet 
Minister,  in  a  speech  made  this  week  at  a  luncheon  of 
the  Glasgow  Rotary  Club,  and  his  words  were  received 
with  cheers.  But'  he  also  said — ^and  it  was  creditable 
to  his  honesty  to  admit  it— that  much  trouble  had  been 
caused  by  the  "  butting  in  "  of  the  War  Cabinet— in 
the  disputes  with  workmen  about  pay — with  a  12J  per 
cent,  increase  in  wages  to  be  paid  indiscriminatelv  to 
all  workers  in  factories  under  the  control  of  the 
Ministry  of  Munitions.     There  can  be  no  doubt  about 


it  that  this  action  of  the  War  Cabinet  was  a  blunder, 
as  Mr.  Barnes  also  admitted,  and  a  blunder  com- 
mitted, too,  just  when  employers  and  employed  seemed 
in  a  fair  way  to  come  to  some  agreement  of  their  own. 
The  Government's  decision  knocked  all  chances  of 
saving  the  nation's  money  on  the  head,  and  plunged  the 
industries  of  the  country  into  a  worse  dilemma  than 
c\cr.  For  the  decision  to  grant  this  "flat"  increase 
all  down  the  scale  could  not  possibly  be  limited  in  its 
effects  solely  to  those  employed  under  the  Ministry 
of  Munitions.  It  affected  all  employers  of  labour  and 
all  workmen  the  kingdom  through.  In  fact,  the  action 
of  the  Go^•ernment,  in  many  instances  besides  this, 
has  been  of  a  kind  calculated,  not  perhaps  to  make 
us  lose  the  war,  but  to  render  the  recuperation  of  our 
industries  after  the  war  extremely  difficult.  The 
cleavage  between  employer  and  employed  has  been 
widened  by  the  Government,  not  in  anywise  reduced. 


What  is  now  happening  in  all  directions?  A 
clamorous  insistence  upon  such  increases  in  wages  as 
are  seen  to  have  been  granted  to  the  favoured  work- 
men under  official  control,  and  as  will  protect  the 
worker  from  the  consequence  of  high  prices  which  their 
employers  suffer  from  as  much  as  themselves,  has 
developed  nearly  everywhere,  and  the  power  of  effec- 
tive resistance  has  gone.  The  Government  by  its 
action  has  created  a  state  of  affairs  bound  to  be 
inimical  to  our  industrial  strength  and  recuperative 
power  at  the  end  of  the  war.  It  has  launched  the 
labourer  on  the  wrong  path.  Instead  of  wisely  appieal- 
ing  to  his  acquisitive  instincts  by  promising  high 
pay  proportioned  to  the  quality  and  quantity  of  the 
work  produced,  it  has  coddled  the  inefficient  and  de- 
moralised all  ranks  of  labour  by  bribes  and  surrenders. 


As  Mr.  Barnes  very  justly  observed,  this  sort  of  treat- 
ment of  labour  in  the  offhand  manner  of  the  ofTicial 
mind  without  business  experience  is  "  absolutely 
against  the  principle  of  payment  by  results."  The  laj 
per  cent,  increase  flung  off-haiid  to  all  and  sundry 
did  not  satisfy  the  workers  to  whom  it  was  conceded ; 
inequalities  persisted  amongst  them  after  the  pay  was 
raised,  as  before,  and  the  Government  has  had  to  wrestle 
ever  since  with  the  discontent  of  the  really  skilled 
vt'orker  almost  more  than  before.  A  committee  has 
been  set  up  specially  to  try  and  smooth  away  differences 
and  arrange  wages  adjustments,  and  it  will  have  its 
work  cut  out  for  it,  because  labour  in  the  main  was 
probably  never  so  pampered  as  it  is  now,  and,  there- 
fore, never  more  unreasonable.  The  time  worker  is  per- 
suaded that  it  is  to  the  good  of  his  class  that  he  should 
do  as  little  work  for  his  pay  as  possible,  'i'hat  gives 
more  of  his  comrades  a  chance  to  work,  he  has  been 
told,  and  a  chance  to  live,  whether  he  deserves  to  live 
or  not.  The  piece  worker  is  consequently  held  back  by 
the  "  ca'  canny"  time  worker,  and  the  \\hi)le  output 
reduced,  to  the  impoverishment  in  ordinary  times  of  all 
concerned.  The  men  should  have  been  told  flatly  from 
the  beginning  that  there  is  no  prosjjerity  so  sure  as  the 
prosperity  that  comes  from  steady  labour,  and  that  the 
more  their  output,  the  higher  their  pay  would  be.  They 
were  not  told  that,  so  they  go  on  in  their  present  listless 
fashion,  and  the  discontent  smoulders  in  most  work- 
shops at  least  as  perniciously  after  each  concession  as 
before.  Can  we  look  to  the  War  Cabinet  to  change  its 
system  or  the  Ministry  of  Munitions?  Wc  cannot.  In 
the  course  of  political  nature  we  are  too  near  a  General 
Election.  The  moral  is  that  officialism  and  politics  alike 
should  be  banished  from  the  field  of  industry.  Masters 
and  workmen  should  draw  together,  and  treat  their  re- 
lations as  purely  matters  of  business,  wherein  each  side 
has  a  partner's  interest  in  the  results. 


The  Coal  Mines  Control  Bill,  which  has  still  to  pass 
the  House  of  Lords,  certainly  seems  ingenious,  but 
how  it  will  meet  the  difficulties  of  the  situation  remains 
to  be  seen.  The  Bill  embodies  an  agreement  between 
the  Controller  and  the  representatives  of  the  colliers- 
owners,    the    Mining   .Association,    in    respect  to     the 


January  19,  1918. 


^be  3nve6tov6'  IRevievv. 


53 


financial  aspect  of  Government  control.  Under  the  Bill 
the  collieries  are  guaranteed  the  pre-^var  rate  of  divi- 
dend plus  5  per  cent,  of  any  excess  profits  that  may  be 
made,  subject  to  the  provision  that  the  output,  unless 
for  a  satisfactory  reason,  is  maintained.  In  effect,  the 
collieries  give  up  95  per  cent,  of  their  excess  profits  as 
against  the  80  per  cent,  claimed  under  the  Finance  Act. 
The  extra  15  per  cent,  goes  to  a  special  fund  for  the 
purpose  of  compensating  those  collieries  which  may  be 
unable  to  earn  their  pre-war  dividends,  the  idea  being 
that  enough  will  be  obtained  to  permit  of  the  payment 
of  the  guaranteed  pre-war  dividend  to  all  collieries  with- 
out encroaching  upon  the  Exchequer. 


I 


In  the  past  Argentina  has  relied  for  her  revenues 
mainly  upon  import  duties,  and  up  to  quite  recently  this 
source  has  proved  adequate  for  requirements,  but  the 
present  abnormal  situation  has  rendered  necessary  some 
other  source  of  income,  .■\lmost  all  the  products  of  .Ar- 
gentina are  subject  to  competition  in  the  world's 
markets,  and,  considering  the  great  distance  she  is 
from  the  chief  consuming  centres,  it  is  not  unnatural 
that  for  many  years  the  Government  rigorously  set  its 
face  against  imposing  a  tax  on  the  chief  exports 
for  the  purpose  of  producing  Government  revenues. 
However,  exceptional  times  necessitate  exceptional 
measures,  and,  after  a  great  deal  of  delay  and  not  in- 
considerable opposition  from  many  quarters,  the 
Chamber  has  voted  the  tax  on  exports.  Several  alter- 
native schemes  were,  we  understand,  proposed,  but 
under  the  circumstances  the  plan  adopted  was,  per- 
haps, the  wisest  one.  The  Government,  doubtless,  feel 
convinced  that  in  the  conditions  which  exist  at  present 
the  demand  for  Argentina's  produce  will  support  the 
increased  cost.  Anyway,  new  and  increased  taxes  and 
exports  are,  it  is  understood,  expected  to  yield 
$150,000,000.  The  Budget  for  1918,  we  learn,  fixed 
its  expenditure  at  $382,386,000  m/n,  and  estimated  the 
revenue  at  $382,400,000  m/n.  Whether  or  not  the  yield 
from  the  new  taxes  comes  up  to  expectations,  it  will 
materially  augment  Government  resources. 


Although  the  political  situation  in  China  still  leaves 
a  great  deal  to  be  desired,  the  finances  of  the  Republic 
are  in  better  shape  than  appeared  likely  some  years  ago. 
Not  one  of  the  least  encouraging  signs  of  the  times  is 
the  recently  published  Maritime  Customs  statement  for 
the  year  1917,  which  shows  an  increase  of  400,000 
Haikwan  taels  over  that  for  1916.  This  bears,  it  is 
true,  only  a  comparatively  small  proportion  to  the  total 
collection,  which,  in  round  numbers,  is  reported  to 
amount  to  38,177,000  taels,  but  it  is  to  the  good,  and, 
considering  the  conditions  obtaining,  exceedingly  satis- 
factory. .'\s  the  average  rate  of  exchange  came  out  at 
5,1^(1.  against  39^d.,  the  total  collection,  converted 
into  sterling,  amounted  to  ;^8,24i,857,  as  against 
^6,264,496.  This  is  a  very  suljstantial  increase,  and 
the  Government  are  able  to  announce  that  all  foreign 
obligations  are  fully  met  to  December  31,  1917.  This 
year  the  Customs  tariff  will  have  the  benefit  of  the 
recently  sanctioned  increase  of  5  per  cent.,  and  thelarge 
sum  of  money  which  will  accrue  to  the  Government 
from  the  suspension  of  the  Boxer  Indemnity  payment 
will  further  increase  the  revenue  of  the  country. 


I 


Bank  balance-sheets  and  reports  for  the  past  year 
cannot  fail  to  excite  more  than  usual  interest  in  present 
circumstances  and  to  reveal  new  developments  worth 
discussion.  We  shall  leave  this,  however,  until  all  of 
them  are  issued,  and  be  content  meanwhile  with  noting 
the  changes  in  each  bank's  exhibit  as  they  come.  One 
of  the  earliest  is  that  of  Barclays  Bank,  Ltd.  It  makes 
a  very  fine  display  for  the  year.  The  aggregate  of  the 
balance-sheet,  for  example,  has  risen  by  as  much  as 
^21,066,780  to  ;£;i38,oi3,48i.  Profits  have  also  been 
good,  but  the  increase,  though  good,  is  nowise  ex- 
cessive. Gross  profit  was  ;i^2,562,20o,  or  £2-jc),2^-i 
more  than  for  the  preceding  year,  and  the  balance  of 
;^i 20,938  brought  forward  was  ;^48,328  larger,  so  that 
altogether  the  bank  earned  ;^2,683,t39  gross  compared 


with  i,"2, 355,044  twelve  months  ago.  This  was  an 
increase  of  ^"320,095.  But  working  expenses,  includ- 
ing income-tax  and  staff  Ixjnus,  absorbed  ;^i99,39i 
more,  directors'  remuneration  ro.se  ;^i  2,872,  reserve  for 
staff  bonus  was  doubled  at  ^,"40,000,  and  although  only 
^'350, 000  was  placed  to  contingency  account  against 
;£,'50o,ooo  put  to  investment  reserve  a  year  ago,  this 
was  all  but  offset  by  the  assignment  of  ;£,'ioo,ooo  to  lay 
the  foundation  of  a  staff  widows'  fund,  so  that  when  the 
dividends  and  bonus  have  been  paid  at  the  same  rate 
as  a  year  ago  the  balance  left  to  carry  forward  was  only 
/"66,435  larger  at  ;^i86,373.  The  humane  thoughtful- 
ness  of  the  board  in  putting  aside  ;^ioo,ooo  to  form  a 
pension  fund  is  timely,  for  the  report  states  that  100 
additional  members  of  the  staff  died  in  the  service  of 
their  country  last  year,  making  188  in  all  lost  since  the 
war  began.  The  balance-sheet  shows  an  increase  of 
;^2i, 777,071  in  the  liabilities  on  current  and  deposit 
account,  &-c. ,  raising  them  to  ;^i 29,067,902,  but  there 
is  a  reduction  of  ^•j20,2<^2  in  the  cross  entrj'  of  endorse- 
ments and  acceptances,  now  ;£^2,i5i,i36.  Some  notable 
and,  from  the  comparative  statistician's  point  of  view, 
highly  commendable  changes  are  shown  on  the  assets 
side.  For  the  first  time  "  cash  in  hand  and  with  the 
Bank  of  England  "  is  shown  separately,  and  amounts 
to  ;^24, 526,865,  an  increase  of  ;^543,627  on  the  figures 
of  a  year  ago,  not\\"ithstanding  that  balances  with  other 
banks  were  then  included  in  the  cash.  This  tiitie  these 
balances  are  now  stated  separately,  combined  with 
cheques  in  course  of  collection,  and  reveal  a  total  of 
;^4,25i,563.  Call  and  short  notice  money  is  ;£'394,ooo 
up  at  ;^5,920,400,  and  the  three  items— cash,  floating 
money,  balances  with  banks,  &c. — added  together  show 
an  increase  of  ;^io,  189,000  over  the  condensed  exhibit 
of  the  similar  aggregates  of  a  year  ago.  Bills  dis- 
counted are  ;^i  1,205, 769  "^P  ^t  ;^28,o89,055,  this  heavy 
total  no  doubt  including  Treasury  bills.  The  fixed  in- 
vestments of  the  bank,  whicti  amount  in  all  to 
;^26,266,878,  have  not  changed  much.  They  are,  how- 
ever, ;^774i526  down.  Advances,  including  stock- 
brokers' loans  under  the  Treasury  minute  of  October  31, 
1914,  are  only  ;^5,997,42o  larger  at  ;^44,20i,242. 


In  the  past  six  months  the  Bank  of  Ireland  made  a 
gross  profit  of  ;^332,5oo,  an  increase  of  ;£'22,500,  and 
the  nett  profit  of  ;^2 13,400  is  ;^'9,ooo  higher,  while 
;£^6,Soo  more  was  brought  in.  After  again  placing 
^'100,000  to  the  Rest,  and  repeating  the  dividend  of 
10  per  cent,  per  annum,  the  carry-forward  is  increased 
l^y  ;6^i5'8oo  to  ;^42,050.  Notes,  &c.,  and  post  bills  in 
circulation  have  risen  ^''2,230',ooo  to  ;£,"i  1,925,000, 
Government  deposits  are  ;^465,ooo  up  at  ^^"2, 868, 000, 
and  other  deposits  ;£,'i,930,ooo  at  ;£,'i5,429,ooo.  Cash 
has  increased  ;£^2, 420,000  to  ^9,536,000,  but  money  at 
call,  &c.,  is  ;^284,ooo  lower  at  ;/_,'2,35o,ooo.  Treasury 
bills  arc  up  ;|r2, 522,000  at  ,-^3,344,000,  and  advances, 
&c.,  ^,'247, 000  at  ;^7,79i,ooo,  while  investments  are 
slightly  lower  at  ;£^7,797,ooo.  The  balance-.sheet  totals 
at  ;^33,838,ooo,  an  increase  of  close  on  five  millions, 
but  the  business  has  a  rather  sluggish  appearance. 


Within  the  past  year  the  London  County  and  West- 
minster Bank,  Ltd.,  acquired  the  Ulster  Bank, 
but  its  accounts  are  not  included  in  the  balance- 
sheet.  Its  own  business  has  been  stupendous 
enough,  for  gross  profits  amounted  to  ;^"6, 110,539, 
an  increase  of  no  less  than  ;^i,o7o,476  on  1916. 
More  than  half  of  this  additional  gain,  however,  was 
swept  away  by  the  interest  paid  to  customers,  which 
took  _;^2, 761,917,  or  ;£r588,33o  beyond  the  similar  draft 
for  1916.  Current  expen.ses,  including  income-tax, 
also  took  ;^200,ii7  more  at  ;^i,884,34o,  and  thus  the 
nett  revenue,  including  ;^i82,29i  brought  forward, 
which  was  ;^20,7o6  more,  is  only  ;^222,g67  up  at 
_;^i,453,358,  but" this  warrants  the  board  in  increasing 
the  final  dividend  to  10  per  cent,  for  the  half-year, 
making  with  the  interim  payment  of  9  per  cent.  19 
per  cent,  in  all  for  1917,  a.=!  compared  with  18  for  the 
previous  j'ear.  Proportionate  payments  are  made  on 
the  amounts  paid  up  on  the  new  shares.  Then  the 
contingencv      fund      for      investments      and      foreign 


54 


XTbe  Jnveetore'  Kevlev^. 


January  19,  191 8. 


J' 


accounts  gels  ;^46o,50o,  against  ;£^3 19,000  assigned 
a  year  ago  to  meet  depreciation  of  investments,  and 
bank  premises  again  receive  ;£,' 100,000.  This  will 
leave  ;^i84,5gg,  or  ;£,'2,3o8  more  than  a  year  ago,  to 
be  carried  forward.  lo  pay  for  the  Ulster  Bank,  as 
explained  below,  129,778  ;^2o  .shares,  p^^  paid,  of  the 
London  County  and  Wislminster  I3ank,  Ltd.,  have 
been  issued  and  added  to  the  capital  account.  The  pre- 
mium on  these  shares,  after  deducting  the  amounts 
written  off,  leaves  a  balance  of  ;^725,948,  which  has 
been  added  to  the  reserve.  Accordingly,  the  paid-up 
capital  stood  on  December  31  at  ;^4, 138,005,  and  the 
reserve  at  ;^4, 725,948.  The  liability  on  current  and 
deposit  accounts  increased  last  year  by  ;^24,985,245  to 
;^i42,267,949.  Circular  notes,  letters  of  credit,  &c., 
show  an  increase  of  jQi,i\o(j,26^  at  ;£4,394,675. 
Acceptances,  on  the  other  hand,  are  down  ;^i,  169,646 
at  ;65>375>6.S2-  Cash  in  hand  and  at  the  Bank  of 
England  shows  a  reduction  of  ;^7, 187,000  at 
^25,197,729,  but  money  lent  at  call  and  short  notice 
is  up  ;^i9, 112,115  to  ;^26,983,538,  making  the  total 
of  these  two  items,  ^52,181,265,  larger  by 
;^'i  1,924,000.  Changes  in  fixed  investments  are  not 
important,  their  aggregate  of  ;^34,987,945  being  only 
^757,109  lower,  but  there  is  an  increase  of  ;^2oo,ooo, 
making  iit  ;^400,ooo,  in  the  share  capital  of  the  London 
County  and  Westminster  Bank  (Paris),  Ltd.,  and  ad- 
vances to  customers  are  ;^4,682,829  larger  at 
;£,"40,8oo,i59.  Bank  premises,  too,  shows  an  increase 
of  ;^79,976  at  ;^i,789,279,  and  the  balance-sheet  aggre- 
gate is  ;^26,4i3,5o8  higher  at  ;^i6i,757,i43.  As  re- 
gards the  Ulster  Bank,  the  summary  balance-sheet 
accompanying  the  London  County  and  Westminster's 
report  shows  liabilities  of  ;^i4,9i4,ooo  on  current  and 
deposit  accounts,  and  of  ;^3, 569,379  on  notes  to  bearer 
and  post  bills  in  circulation.  These  are  the  liabilities. 
Amongst  the  assets  are  ;^3, 900,000  of  Treasury  bills 
and  ;^2,o28,ooo  in  various  War  Loans.  ALso  the  bank 
holds  ;^'i,54i,8o2  of  Colonial  Government  and  Indian 
guaranteed  sitocks,  making  its  investments  of  this  de- 
.scription  altogether  ;^8, 299,459.  Its  as.sets  an  the 
form  of  bills  of  exchange,  advances,  &c.,  came  to  an 
additional  ^^6,324,075,  and  its  cash  in  hand  and  with 
London  bankers  to  ;^5,097,059.  The  London  County 
and  Westminster  Bank  paid  £12  3s.  4d.  per  share  for 
the  194,666  (out  of  a  total  of  200,000  issued)  it  bought, 
oi"  ;^2,368,436  in  all,  and  has  written  ;^5o6,942  of  that 
off,  so  that  the  shares  stand  in  the  balance-sheet  at 
;^9  IIS.  3d.  each,  or  ;^i,86i,493  in  all. 


Beyond  the  bare  mention  of  the  fact  and  the  state- 
ment, which  we  can  well  believe,  that  the  amalgama- 
tion of  the  Union  of  London  and  Smiths  Bank,  Ltd., 
with  the  National  Provincial  Bank  of  England,  Ltd., 
as  from  January  i  is  an  arrangement  which  the  direc- 
tors "  are  confident  will  be  of  great  advantage  to  both 
the  shareholders  and  customers,"  no  information  is 
given  about  this  important  step,  but  it  will  doubtless 
be  fully  dealt  with  at  the  forthcoming  special  general 
meetings.  For  the  year  just  closed  the  Union  of  Lon- 
don and  Smiths'  gross  profits  were  ;^363,422  up  at 
^"2,606,423,  but  of  this  larger  profit  ^323,157  was 
drawn  away  by  the  additional  interest  allowed  to  cus- 
tomers, the  total  of  which  was  ;^i,34o,i65.  It  thus 
appears  that  depositing  customers  get  the  best  of  the 
deal  with  the  banker.  He  does  all  the  work,  and  has 
to  be  satisfied  with  the  minor  share  of  the  profits.  The 
balance  brought  forwaird  was  ;^65,209  lower  at 
;^82,543,  and  as  the  nett  profit  of  ;^593,369  was  itself 
^17,108  less,  it  follows  that  the  entire  amount  avail- 
able for  distribution  was  ;^82,3i7  less  at  ^"675, 912, 
but  the  dividend  is  maintained  at  10  per  cent,  for  the 
year  by  a  final  payment  at  that  rate,  all  subject  to  in- 
come-tax. Then  ;^20o,ooo  is  set  aside  for  contin- 
gencies, or  half  the  amount  devoted  to  writing  down 
investments  a  year  ago,  and  it  follows  that  the  balance 
of  ;^209,304  left  to  carry  forward  is  ;^i 26,761  up, 
which  shows  satisfactory  conservatism.  Current  and 
deposit  accounts  aggrega'te  ;^62, 818,388,  an  increase  of 
;^7, 586,525.  This  total  is  divided  into  ;^43,65i,i76  of 
current  accounts,  which    is  ;£'3,702,569    increase,  and 


deposit  accounts  ;^i9, 167,212,  which  are  ;^3,883,958 
up.  Acceptances  are  ;^i, 795.573  down  at  ;^i,756,i24. 
Other  changes  amongst  the  liabilities  are  of  no  parti- 
cular weight.  Among.st  the  assets,  cash  in  hand  is  up 
;6"254.53'-'  to  ;^.4,44S.5i6,  and  balances  at  the  Bank  of 
England  are  ^640,849  down  at  ;^9,o96,93 1 ,  so  that  the 
two  I'tems  taken  together,  as  they  almost  invariably 
are  by  other  banks,  show  a  reduction  of  ;^386,3i4  at 
;6i3.542,447-  Call  and  notice  money  is  ;^4,277,o72 
up  at  ;^i4>3i2,239.  There  are  sundry  changes  in  the 
fixed  investments,  which  in  the  aggregate  reduce  them 
by  ;^>"94'.88i  to  ;^i3, 906,749.  Bills  discounted  show 
an  increase  of  ^2,197,150  at  ;^6,o82,658,  and  loans 
and  advances  are  ;^3, 232,074  larger  at  ;^i8,562,87i. 
Other  changes  are  all  insignificant,  but  the  total  of  the 
balance-sheet  is  ;£'6,583,39o  higher  at  ;^7r, 340,856. 


Parr's  Bank  has  increased  its  dividend  for  the  past 
year.  It  paid  9  per  cent,  for  the  first  half  and  pays  10 
per  cent,  for  the  second,  so  that  the  total  return  on  its 
shares  will  be  19  per  cent,  for  the  year.  This,  how- 
ever, is  what  the  bank  paid  for  a  good  many  years  pre- 
vious to  the  war,  and  the  available  nett  profits  for  1917 
were  ;^207,824  larger  at  ;^76o,o86,  although  the 
balance  brought  forward  and  included  in  that  total  was 
;^iog,7i9  lower  at  ;^i84,i8o.  But  the  bank  has  no 
writings  off  or  down  to  do  this  time,  and  after  paying 
the  dividend  the  balance  of  ;^384,733  left  to  bring  in 
to  the  new  year  is  ;^200,553  larger  than  that  brought 
in.  The  most  conspicuous  change  in  the  balance-sheet 
is  an  increase  of  ^7,930,859  in  the  liabilities  on  current, 
deposit  and  other  accounts,  making  them  ;^68,63i,32i. 
Acceptances  arc  up  ;^579,375  to  ;^8,4i4,336.  Drafts 
current,  which  figured  a  year  ago  in  the  balance-sheet 
for  ;^i,274,742|,  is  an  entry  now  omitted.  Cash  is 
;^543,299  down  at  ;^i 2,71 3,526,  and  money  at  call  and 
short  notice  is  ;^7,972,90i  up  at  ;^20,029,668,  making 
the  combined  items  ^^7, 449, 872  larger  at  ;^32,743,i95. 
The  investments  in  fixed  securities  are  down 
;^i,265,952  to  ;£,  15,603,087,  both  the  War  Loan  stock 
held  and  the  miscellaneous  investments  being  valued 
at  less.  War  Loan  and  other  British  Government 
st<x:ks  alone  account  for  ;^3i6,486  less.  Bills,  loans, 
S.C.,  have  risen  ^657.559  to  ^^24, 171,450,  and  bank  pre- 
mises are  al.so  slightly  higher,  .so  that  the  total  of  the 
balance-sheet  is  ;^7, 459,601  up  at  ;^82,252,Tq2. 


The  London  Joint  Stock  Bank,  Ltd.,  earned  gross 
^.^138,633  more  last  year  at  ^"1,346,641,  but  the  balance 
of  ^.50,324  brought  forward  was  ;^i9,952  less.  Cur- 
rent exfjenses,  including  directors'  fees  and  super- 
annuation allowances,  rose  ;i.3o,734  to  ;£r53i,440,  and 
after  paying  interest  on  rebate,  ;^203,096,  and  adding 
;/,'200,ooo  to  the  reserve  fund,  besides  ^?20,ooo  each 
to  the  superannuation  fund  and  in  reduction  of  pre- 
mises account,  the  board  pays  the  usual  10  per  cent, 
dividend,  with  ;^'i 25,428  remaining  to  carry  forward, 
or  ;^75,i04  more  than  was  brought  in.  This  shows 
prudent  conservatism.  It  has  not  been  necessary  this 
year  to  apply  any  of  the  profits  towards  meeting  de- 
preciation, whereas  a  year  ago  ;£r27 1,600  was  thus 
swept  away.  Changes  in  the  balance-sheet  are  com- 
|)arati\cly  unimportant  for  these  days,  although  liabili- 
ties on  deposit,  current  accounts,  &c.,  are  ;£J'9,o59,68o 
up  at  ^£^57,979,280,  but  there  is  a  decrease  of  ;^635,594 
in  the  acceptances,  now  j£,2,qvf,\ofi.  Cash  in  hand 
and  at  the  bank  is  ;i£^t, 696,451  larger  at  p^i  1,087,649, 
and  call  and  short-notice  money  is  ;^io7,464  up  at 
;£"2, 1 50,393.  The  holding  of  Treasury  bills  is  this  time 
stated  separately  at  ;^i8,352,400,  and  that  alteration 
brings  down  the  ordinary  bills  discounted  to 
£^1, 527, 750,  a  decrca.se  on  the  year  of  ;£J^i4,647,776- 
Loans,  advances,  &c.,  are  ;^i  ,894,554  up  at 
^:  1 5, 468, 5  29. 


We  are  glad  to  see  that  the  London  and  South- 
western Bank,  Ltd.,  winds  up  its  career  as  a  separate 
entity  in  excellent  style.  Gross  profits  for  the  past 
year  amounted  to  ;£J'i, 490,275,  an  increase  of  j^2^^,ooa 


January  19,  1918. 


XTbe  Jnvestore'  IReview* 


55 


I 


over  the  previous  twelve  months,  which  iTi  turn  scored 
a  gain  of  j£,"23i,ooo.  But  interest  and  expenses  also 
marched  forward,  and  the  nett  profit  is  only  ;^"4,ooo 
higher  at  ;^3 12,000.  A  larger  balance  was  brought  in, 
and  after  repeating  the  dividend  of  17  per  cent.,  it  is 
possible  to  set  aside  ;^^i6o,ooo  for  contingencies,  against 
^150,000  written  off  for  depreciation  last  year,  and  to 
carry  forward  only  _^'i,ioo  less  at  ;£,"54,400.  Of  course, 
with  a  staff  that  is  to  a  very  large  extent  only  partly 
trained  it  is  inevitable  that  expenses  should  increase 
at  the  very  least  side  by  side  v\  ith  the  expansion  of  busi- 
ness ;  otherwise  the  nett  results  would  doubtless  have 
shown  up  to  even  greater  advantage.  Current  and 
deposit  accounts  have  increased  ;^8, 000,000  to 
;^38,664,c)Oo,  and  acceptances  are  ;^i,2O0,ooo  higher  at 
;^"2, 356,000.  Cash  in  hand  is  up  /,"i,200,ooo  at 
^7,648,000,  and  money  at  call,  &c,,  has  risen 
;£,"i,8oo,ooo  to  _£^5, 1 83,000,  the  former  item  represent- 
ing very  nearly  20  per  cent,  of  the  liabilities  to  the 
public.  Bills  discounted  have  increased  ;£"4,ooo,C)00  to 
;£,'6,690,ooo,  but  there  is  little  change  in  investments  at 
;^"5,958,ooo  or  loans  and  advances  at  ;£^i5, 170,000. 
Ihe  balance-sheet  totals  at  ;^43, 700,000,  an  increase  of 
;^8,ooo,ooo,  and  we  ought  to  mention  that  the  reserve 
fund  of  ;^i, 350,000  exceeds  the  paid-up  capital  by 
;;<:i  50,000. 


The  directors  have  appointed  Captain  Gerard  Powys 
Dewhurst  as  chairman,  and  Mr.  Benjamin  G.  Wood  as 
deputy-chairman,  to  fill  I  he  vacancies  created. 


In  the  past  year  the  London  and  Provincial  Bank, 
Limited,  secured  an  increase  of  ;£,'i75,ooo  in  gross 
profits,  following  a  gain  of  ^187,000  in  1916.  The 
total  is  now  ;^i,369,ooo,  but  expenses  required  ;£,"70,ooo 
more  at  ;£^492,ioo  and  interest  ;^'ioo,c>oo  more  at 
;,£,'573,520.  Including  a  slightly  larger  balance  brought 
in,  the  balance  is  ;^6,ooo  up  at  ;^345,850,  out  of  which 
^'150,000  is  set  aside  for  contingencies,  as  against  a 
similar  amount  written  off  for  depreciation  of  invest- 
ments a  year  ago.  The  dividend  of  19  per  cent,  is 
repeated,  and  ^11  more,  at  ;^'53,350,  remains  to  be 
c;;rried  forward.  Current  and  deposit  accounts  in- 
cieased  ;£r5,4So,ooo  to  ;^35, 960,000,  and  acceptances 
^^125,000  to  ;£"425,ooo.  Cash  in  hand  is  ;^5oo,ooo 
higher  at  ;£^7,438,ooo,  and  money  at  call,  &c.,  is  up 
;^'i,50o,c)oo  to  ;^6, 470,000.  Investments  are  a  little 
higher  at  just  over  7  millions,  while  discounts  and  ad- 
\ances  (including  4  millions  of  Treasury  bills)  are  up 
;£i'3,6oo,ooo  at  ;£ri8,24o,cioo.  The  balance-sheet  total 
shows  an  increase  of  ^,'5,700,000  at  ^^39,883,000,  and, 
with  the  present  addition,  reserves  will  amount  to 
_£'2,3C)o,ooo  against  a  paid-up  capital  of  one  million. 


Following  a  gain  of  ;£;73,orK5  in  gross  profits  a  year 
ago,  Williams  Deacon's  Bank,  Ltd.,  shows  a  further 
improvement  of  ^'70,000  for  1917  at  a  total  of 
^^579,900.  Salaries  and  other  charges,  however,  re- 
quired _£r52,ooo  more,  and  the  nett  profit  comes  out 
;£ri8,oc>o  better  at  ^.297, 915.  Ihis  time  ;£,"ioo,ooo  is 
placed  to  reserve  (raising  it  to  ;£'75o,ooo),  as  against  a 
similar  amount  written  off  for  depreciation  last  year, 
and  in  addition  ^"20,000  is  placed  to  the  credit  of  bank 
premises.  With  about  ;^,5,ooo  more  brought  in,  it  is 
possible  to  repeat  the  dividend  of  14  per  cent.,  and  to 
carry  forward  ;£,2,ooo  more  at  ^"20,810.  It  is  stated 
that  the  holdings  of  Government  stocks  stand  at  cost 
in  the  balance-sheet,  and  the  other  investments  have 
licen  w-ritten  down  below  current  market  prices,  so 
ihat  the  position  in  this  respect  is  all  that  could  be  de- 
sired. Current  and  deposit  accounts  show  an  increase 
i>f  ,^4,000,000  .It  ,/^z8,444,ooo,  and  acceptances  are 
£,120,000  higher  at  ;£?!, 416,000.  Cash  in  hand  is  up 
^.'270,000  at  ;^6, 193,000,  and  money  at  call,  &c.,  has 
increased  ;^6io,ooo  to  ;i^'2, 5.1 2,000.  Investments  are 
;£,38o,ooo  less  at  ;{?t  1,200,000,  but  loans  and  advances 
have  increased  ^?3,(>-;o,ooo  to  ;£rio,i8o,ooo,  and  the 
balance-sheet  lotal  is  ^£'4, 225, 000  higher  at 
/r32, 048,003.  .Ml  the  figures  indicate  alert  and 
\  igorous  management.  Sympathetic  reference  is  made 
i'l  the  report  lo  the  loss  the  bank  sustained  by  the 
death  of  the  late  chairman,  Mr.  Charles  Sumner  Hoare, 
and  to  the  losses  of  many  members  of  the  staff  at  the 
front..  Mr.  John  Craig  also  has  retired  from  the  posi- 
tion of  joint  general  manager  after  39  vears'  service. 


Following  the  practice  wliich  is  becoming  general,  the 
.Manchester  and  Liverpool  District  Banking  Co.,  Ltd., 
now^  makes  up  its  accounts  annually  instead  of  half- 
yearly.  Nett  profits  for  the  past  twelve  months 
amounted  to  ;£,'44i,640,  and  with  ;£,'45,ooo  less  brought 
in,  there  is  an  available  balance  of  ;£^52 1,700.  This 
allows  of  a  dividend  of  17I  per  cent,  being  again  paid, 
while  ;£^50,ooo  is  placed  to  reserve,  as  against  ;£^70,ooo 
w  ritten  off  for  depreciation,  and  the  balance  forward  is 
increased  by  p^'38,000  to  ;^i39,9CO.  A  year  ago 
;£,'i  10,000  was  taken  from  reserve  to  provide  for  depre- 
ciation of  securities.  Deposit  and  current  accounts 
have  increased  ;£?5, 200,000  to  ;£"40,593,ooo,  and  accept- 
ances are  ;£'47o,ooo  higher  at  ;£j3,262,ooo.  Cash  has 
risen  ;£,'86o,ooo  to  ;£^6, 185,000,  but  money  at  call,  &c., 
is  ;£j'r,20o,ooo  down  at  ;£r3,034,ooo.  British  Govern- 
ment securities  have  fallen  ;£'40o,ooo  to  ;^7,445,ooo, 
and  other  securities  ;£?5jo,ooo  to  ;£'i,498,ooo,  but  dis- 
counts have  increased  ^,4,400,000  to  ^'i  1,075,000,  and 
advances  ;£r2,20o,ooo  to  _£^i4,6o8,o(X3.  The  balance- 
sheet  total  is  now  ;^47, 607,000,  an  increase  of 
;£J"5,8oo,ooo,  and  everything  looks  flourishing. 


Business  keeps  remarkably  steady  in  the  Australasian 
States,  and  also  profitable.  This  is  a  reasonable  infer- 
ence from  such  data  as  we  find  in  the  report  of  the 
Bank  of  New  South  Wales  for  the  half-year  ended  Sep- 
tember last.  Its  profits,  after  deducting  rebate,  reduc- 
ing the  valuation  of  bank  premises,  allowing  for  bad 
and  doubtful  debts,  fluctuation  in  the  value  of  invest- 
ments, &c.,  were  ^26,159  higher  than  in  the  corre- 
sponding half-year  at  '^'274,602.  The  babince  of 
p£,'i  14,827  brought  forward  was  also  ^25,878  up  on  a 
like  comparison.  Consequently  the  directors  had  alto- 
gether i.^389,430  at  their  disposal,  or  ;^52,037  more. 
It  takes  a  little  additional  money  now  to  pay  the  divi- 
dend, which,  as  usual,  was  declared  at  the  rate  of  10  per 
cent,  per  annum,  because  the  paid-up  capital  has  been 
increased  ^"  199, 500  in  the  course  of  the  year,  and  is  now 
;£'3,904,86o.  The  chairman,  indeed,  told  the  share- 
holders at  the  meeting  in  Sydney  that  had  "  the  Lon- 
don embargo"  been  lifted  the  full' ;£^4,ooo,ooo  would 
have  been  paid  up  by  now.  As  it  is  the  dividends  for 
the  year  take  ;^i95,242,  compared  with  ;^i8o,i33  12 
months  ago,  but  it  was  easy  for  the  board  to  cover  this 
additional  charge  and  to  add  ;£J'75,ooo,  or  ;^25,ooo 
more  than  was  done  a  year  ago,  to  the  reserve  fund, 
with  still  £^119,187  left  to  carry  forward.  Business, 
the  chairman  remarked  in  his  address,  was  good 
throughout  the  half-year,  although  imports  had  fallen 
off  somewhat,  bringing  a  reduction  in  the  drawings  on 
London  and  other  centres  to  pay  for  them.  But  high 
prices  and  freights  have  largely  compensated  for  re- 
duced quantities.  In  all  probability  this  peculiarity  will 
continue  while  the  war  lasts,  and  may  involve  consider- 
able anxiety  everywhere  when  the  end  comes  in  order 
to  avoid  losses,  for  prices  are  then  almost  certain  to 
slump.  The  fall,  however,  may  be  less  abrupt  than 
many  now  anticipate.  It  is  useless  to  form  conjec- 
tures and  lay  plans  beforehand.  .'\11  that  is  possible 
for  the  wise  and  prudent  is  vigilance  in  dealing  with 
each  day's  business  as  it  comes.  Changes  in  the 
balance-sheet  compared  with  a  year  ago  are  insignifi- 
cant except  at  one  or  two  points.  The  aggregate  of 
the  balance-sheet,  indeed,  is  only  ^'i, 655, 524  higher 
than  it  was  a  year  ago  at  ;^55.640.935-  T'l'S  is  the 
total,  exclusive  of  the  cross  entry  of  "  letters  of 
credit,"  &c.,  which,  at  /i'l, 512, 493,  is  almost  identical 
with  the  figure  of  12  months  ago.  The  only  con- 
spicuous difference  in  the  balance-sheet  is  the  appear- 
ance for  the  first  time  of  ;£'3,ooo,ooo  of  short-dated 
British  Treasury  bills  among  the  as.sets,  but  in  spite 
of  this  large  item  the  holdings  of  the  bank  in  British 
and  Colonial  Government  securities  has  gone  up 
^1,498,580  to  ;£'7, 414,265.  The  agglomerate  "bills 
discounted,  loans  and  advances  "  are  now  ;^25,6o8,533. 


56 


(the  Jnveetore'  IRevlew. 


January  19,   1918; 


an  increase  of  only  ;^i,033,223  on  the  year.  Coin, 
bullion,  and  cash  balances  also  show  a  change  of  only 
^^73,687  on  the  vear,  thev  being  that  amount  down  at 
;^io,58i,668.       '  ' 

Evidently  the  National  Discount  Co.,  Limited,  had  a 
very  prosperous  year,  as  the  gross  profits  show  an  ad- 
vance of  ;^'ioo,ooo  at  ;65'3'7°o>  following  a  gain  of 
;£j'68,ooo  in  the  previous  12  months.  Expenses  took 
only  a  trifle  more,  but  reserve  for  rebate  of  interest 
increased  ;^83,ooo,  and,  including  a  rather  larger  sum 
brought  in.,  the  balance  is  ;^i6,ooo  higher  at  ;^i  15,580. 
The  dividend  is  raised  from  10  per  cent,  to  11  per  cent., 
and  the  carry  forward  is  increased  by  _^i 2,000  to 
;^47,740.  A  year  ago  ;^55,ooo  was  taken  from  reserve 
to  provide  for  depreciation  of  investments,  'but  there 
are  no  special  appropriations  on  this  occasion.  De- 
posits, &c.,  have  increased  ;^4,35o,ooo  to  ;^2 1,141,000, 
end  bills  re-discounted  are  ;^2, 240,000  up  at 
j^9,597,ooo.  Cash  is  ;^i63,ooo  higlier  at  ;^653,ooo, 
investments  have  increased  ;^i  15,000  to  ;^i,i53,ooo, 
loans  ;^433,ooo  to  ;^2, 393,000,  and  bills  discounted 
almost  6  millions  to  28  millions.  The  total  of  the  bal- 
ance-sheet is  ;^32, 524,000,  an  increase  of  ;^6,7oo,ooo. 
Reference  is  made  to  the  loss  sustained  by  the  com- 
pany through  the  death  of  Mr.  Edmund  T.  Doxat,  who 
had  been  chairman  for  over  15  years,  in  which  posi- 
tion he  is  succeeded  by  Mr.  S.  F.  Mendl. 

As  might  have  been  expected,  business  was  good  for 
the  Manchester  and  County  Bank,  Ltd.,  last  year,  and 
the  nelt  profits  were  ;i^i4,ooo  higher  at  ;^2 10,050,  but 
the  amount  brought  in  was  smaller,  and  the  balance  of 
;^27o,250  shows  an  increase  of  ^6,500.  The  directors 
raise  the  bonus  to  the  stafT  by  ;£4,ooo  to  ;,^i2,ioo,  and 
the  dividend  by  Sd.  to  iis.  4d.  per  share,  but  they 
write  ofl  ;^40,ooo,  or  ;^io,ooo  less,  for  depreciation, 
and  increase  the  canry-forward  by  ;£'3,ooo  to  ;^63,44o. 
A  year  ago  ;^ioo,ooo  had  to  be  taken  from  reserve  to 
meet  depreciation,  and  the  year  before  ^150,000,  so 
that  it  might  have  been  more  conservative  to  replace 
some  of  this  before  increasing  the  dividend.  However, 
it  only  requires  ^9,000  additional,  and  we  need  not 
boggle  at  it.  Deposits  have  risen  ;^i, 400,000  to 
;^H'505'000,  and  cash  balances  are  up  ;^250,ooo  at 
;^4, 340,000.  War  Loan  and  other  advances  have  in- 
creased ;£;8oo,ooo  to  ;^i,022,ooo,  and  general  advances 
are  nearly  a  million  higher  at  ;^5, 470,000,  but  invest- 
ments are  ^^350,000  lower  at  ^3, 745, 000.  The 
balance-sheet  total  has  increased  ;^i  ,050,000  to 
;^  1 7,652, 000. 

Highly  satisfactory  progress  is  shown  by  the  Lan- 
cashire and  Yorkshire  Bank,  Ltd.,  in  the  results  for 
the  past  year.  Profits  were  ^53,000  higher  at 
^22i,i6o,  but  ;^2o,ooo  more  had  to  be  allowed  for  re- 
bates, and  the  amount  brought  in  was  £"5,000  less,  so 
the  available  balance  is  up  /r28,ooo  at  ;£2i7,7oo.  In 
addition  to  the  dividend  of  32s.  per  share  (16  per  cent.) 
a  bonus  of  2S.  8d.  is  recommended,  absorbing  ;^i  1,500, 
while  the  allocation  to  reserve  is  doubled  at  ;^to,ooo,' 
a"d  ;^3i.50o  more  at  ;£'58,i7o  is  carried  forward.  A 
year  ago ^20,000  was  written  off  for  depreciation,  and 
in  the  previous  year  ;^ioo,ooo  was  taken  from  reserve 
for  that  purpose.  Deposits  have  risen  £:2, 300,000  to 
;6i8,045,ooo,  but  acceptances  are  ;^30o,oo'o  down  at 
£204,000.  Cash  is  ;^27o,ooo  lower  at  ;^4,593,ooo, 
and  investments  have  been  reduced  ;^37o,ooo  to 
A4.347.000,  but  bills  (including  Treasurie.s)  have  in- 
(reased  ;^2, 500,000  to  }C^,?,^7<ooo,  and  advances 
£450,000  to  £6,755,000.  The.balance-.sheet  totals  at 
£19,870,000,  an  increase  of  two  millions. 

Nett  profits  of  the  Sheffield  Banking  Co.,  Ltd.,  for  the 
past  year  amounted  to  ^^84,850,  an  increase  of  £79,400, 
and  /r7,300  more  was  brought  forward,  so  that  the 
available  balance  is  /Tie, 700  higher  at  £'102,250. 
After  repeating  the  dividend  of  15  per  cent,  and  the 
bonus  of  I  per  cent.,  £10,000  is  added  to  the  surplus - 
fund,  £2,000  against  £1,500  is  written  off  premises 
and  £"6, 200  more  at  £"23,600  is  carried  forward.  Not- 
withstanding the  large  withdrawals  for  investment  in 


War  Loans  deposit  and  current  accounts  hav6  in- 
creased £■400,000  to  ;£6,034,ooo.  Cash  balances  are 
up  £^108,000  at  ;£2, 090,000,  investments  £31,000  at 
;£2, 574,000,  and  advances,  &c.,  £568,000  at 
£'1,904,000.  It  has  not  been  necessary  to  provide 
any  further-  sum  for  the  depreciation  of  investments, 
and  it  is  mentioned  that  the  bank  has  acquired  an  in- 
terest in  the  British  Trade  Corporation  formed  to  pro- 
vide special  financial  facilities  for  trade  after  the  war. 


Further  substantial  progress  is  shown  in  the  report 
of  the  African  Banking  Corporation,  Limited,  for  the 
year  to  September  30.  Gross  profits  amounted  to 
£-,74>9SO>  an  increase  of  ^^4 1,000,  which  follows  a 
gain  of  £'26,000  in  the  previous  12  months.  Expenses 
were  £^11,500  higher,  and  rebate  on  bills  required 
;^4,ooo  more,  leaving  a  nett  profit  of  £^80,000.  After 
placing  ;^3o,ooo,  against  £^10,000,  to  reserve,  the  divi- 
dend is  raised  from  6^  per  cent,  to  7^  per  cent,  (of 
which  2i  per  cent,  has  been  paid  as  interim),  and  the 
balance  remaining  to  be  carried  forward  is  practically 
tlie  same  at  £^28,740.  Note  circulation  has  expanded 
£7 1 07,000  to  ;£332,ooo,  and  deposits,  &c.,  have  in- 
creased £"986,000  to  £"6,722,000,  but  acceptances  have 
been  reduced  by  £"190,000  to  £"176,000.  Coin  and 
notes  have  increased  £"326,000  to  £"1,078,000,  and 
cash-at-call  is  ;^i46,ooo  up  at  ;^652,ooo.  Investments 
are  ^140,000  lower  at  £784,000,  but  bills  purchased 
are  £"782,000  higher  at  £"2,070,000.  Discounts  and 
advaiiees  are  roughly  the  same  at  £"3,450,000,  and  the 
balance-sheet  total  of  £"8,415,000  shows  an  increase  of 
£'920,000.  The  increase  in  the  note  circulation  and  in 
deposits,  &c.,  indicates  that  business  conditions  in 
South  Africa  are  steadily  improving. 

For  the  second  year  in  succession  the  Australian 
Pastoral  Co.,  Ltd.,  has  had  a  very  prosperous  season, 
and  the  gross  profits  to  June  30  last  amounted  to 
:^275,45o,  an  increase  of  £"22,000,  following  a  gain 
pf  £5o>ooo  in  the  previous  twelve  months.  Moreover, 
it  was  found  possible  to  reduce  expenses,  rents  and 
taxes  by  ;£3 1,000,  and  the  nett  profit  is  £"53,000 
higher  at  £"127,000.  Out  of  this,  ;^47,ooo  against 
£^13,000  is  placed  to  reserve,  and  £^5,000  is  again  set 
aside  to  stock  reserve,  raising  these  funds  to  £400,000 
and  £"75,000  respectively.  The  dividend  is  then  in- 
creased from  6  per  cent,  to  8  per  cent.,  and  the  balance 
forward  is  practically  the  same  at  £"2,840.  It  is  stated 
that  the  season  has  been  an  excellent  one,  the  rainfall 
having  been  satisfactory  and  well  distributed  over  all 
the  company's  properties.  Substantial  sales  of  both 
sheep  and  cattle  have  been  made  at  good  prices,  and 
the  lambing  has  given  fair  increases.  Changes  in  the 
balance-sheet  are  unimportant  except  that  while  wool 
unsold  has  fallen  £"116,000  to  £^33,500,  investments 
have  increased  £:io2,ooo  to  £^307,680,  and  cash  is  up 
£"17,000  at  £"62,240.  The  directors  express  them- 
selves as  well  satisfied  with  the  terms  on  which  the 
Imperial  Government  bought  the  entire  wool  clip  of 
1916-17  and   1917-18. 


Lennards,  Ltd.,  the  boot  and  shoe  manufacturers,  ol 
Bristol  and  elsewhere,  again  did  well  last  year,  the 
trading  profit  showing  an  increase  of  £5,500  at 
£"61,400,  after  setting  aside  a  special  reserve  of  £"3,000 
for  dilapidations  and  alterations,  which  are  postponed 
owing  to  difficulties  created  by  the  war.  Expenses 
showed  little  change,  but  £"4,000  more  at  £"14,000  is 
set  aside  for  excess  duty,  and  the  nett  profit  is 
£"1,400  up  at  £"39,860.  The  dividend  of  lo  per  cent, 
is  repeated,  and  as  £"7,000  more  was  brought  in,  the 
sum  carried  forward,  after  minor  adjustments,  is  in- 
creased by  that  amount  to  £"27,260.  Under  the  ex 
ceptional  difficulties  created  by  the  war,  the  directors 
deem  it  advisable  to  carry  forward  the  whole  of  this 
balance,  instead  of  placing  part  to  reserve.  Evidently 
the  financing  of  the  increased  business  has  put  some 
strain  on  the  company's  resources,  as  there  is  now  a 
bank  overdraft  for  £"45,940,  and  cash  balances  havt- 
been  reduced  by  £"25,000  to  £"9,000.  On  the  other 
hand,  £"14,700  has    been    spent  on  premises,  fittings. 


January  19,   1918. 


Ube  Jnvestore'  TReview. 


57 


M^c,  and  stocks  have  increased  ;^76,ooo  to  ;^265,ooo. 
There  are  no  trade  creditors,  and  the  position  is  per- 
fectly sound. 



During  the  past  year  the  gold  production  of  all  the 
principal  fields  decreased  to  an  appreciable  extent,  the 
falling  oft  in  the  Transvaal  being  in  excess  of  one 
million,  and  in  Rhodesia,  West  Africa,  India,  and  Aus- 
tralia the  decrease  was  proportionate.  There  were 
three  causes  of  this  diminution — the  increased  cost  of 
working,  shortage  of  labour,  and  .scarcity  of  supplies 
necessary  for  mining  operations.  Owing  to  the  fact 
that  the  price  of  gold  is  fixed,  every  increase  in  the  cost 
of  obtaining  it  reduces  the  profi'is  of  the  mines,  and  in 
the  case  of  the  low-graders  the  increase  has  been  big 
enough  either  to  wipe  out  the  margin  of  profit  alto- 
gether or  to  reduce  very  nearly  to  vanishing  point. 
Some  of  the  mines  have  already  closed  down  in  con- 
sequence, and  others  will  have  to  follow  their  example 
shortly  unless  relief  is  forthcomiag  in  sonie  shape  or 
form.  As  regards  the  Rand,  Mr.  E.  A.  Wallers,  Pre- 
sident of  the  Transvaal  Chamber  of  Mines,  has  stated 
that  the  difficulty  is  only  surmountable  with  Govern- 
linent  assistance,  and  says  that  the  Union  Government 
IS  now  conducting  an  inquiry  with  a  view  to  finding  a 
solution  of  the  difficulties  of  the  low-grade  mines,  which 
contribute  25  per  cent,  to  the  output.  We  believe  dis- 
cussions have  taken  place  on  the  subject  with  the  Im- 
perial Government,  for  bankers  are  urging  that  it  is 
vitally  necessary  not  only  to  prevent  any  falling  off  in 
production,  but,  if  possible,  to  increase  the  output,  in 
order  that  the  basis  on  which  rests  the  enormous  crea- 
tions of  credit  shall  be  broadened  to  meet  the  exchange 
situation  which  will  assert  itself  after  the  war.  This 
matter  is  eminently  a  subject  for  the  new  Currency  and 
Exchange  Committee,  of  which  Lord  Cunliffe  is  chair- 
iWian,  to  consider. 


i 


I 


t' 


What   precisely   Messrs.   Bowerman  and   Henderson 
xpect  to  accomplish  by  the  circular  they  have  drawn 
up  and  addressed  to  those  now  in  power  in  Russia  we 
do  not  venture  to  guess.       That   their  intentions   are 
most   honourable    and  worthy    is    obvious,     but    their 
phraseology  seems  hardly  to  indicate  that  they  are  well 
qualified  to   speak  on    the  vital    questions    of  war   or 
peace.        They   address   the   Russian     workmen,     and 
thVough  them  the  German,   as  if  all  were  on  the  same 
moral   plane,   possessed   of  the   same   ideals,    and   en- 
dowed with    an   equality   of  culture    and    intelligence. 
Now,  nothing  would  be  more  erroneous  than  assump- 
ions  of  this  description,  and   some  of  the  statements 
re  all  generosity  towards  our  most  ruthless  enemies, 
hich  will  try  the  patience  even  of  the  working  man. 
'We  see  no  evidence,"  they  say,  "that  German  ad- 
inistration  in  tropical  Africa  has  been  so  much  worse 
an    that   of  other    European    Governments   that   the 
eace  Conference  would  be  justified  in  singling  it  out 
"or  special  treatment."     What  is  the  business  of  these 
wo   gentlemen   with   a   question    of   this    kind    at   the 
present  time?     Where  is  their  evidence  upon  which  a 
statement  of  this  kind  can  be  founded?     That  is  only 
ne  example,  but  going  through  the  manifesto  almost 
very  sentence  is  dipped  in  the  same  fat,  compounded 
f   benevolent    sentimentality    and    goody-goody    mush 
coloured  by  ignorance.     If  we  may  judge,  and  not  mis- 
judge, a  document  of  this  kind  is  a  direct  product  of 
the     peace     programme    campaigning    of    the    Prime 
Minister,  and  whether  or  not,  it  is  premature  altogether. 
The  working  men  had  much  better  leave  that  job  alone 
and  get  on  with  their  work.     Their  appeal  to  Russia  is 
likely  to  meet  with  but  a  scanty  response,  if  any.     Ger- 
many is  in  no  condition  to  understand  it,  and  in  other 
directions  the  move  it  represents  looks  altogether  pre- 
mature. 


It  is  impossible  to  make  an  exact  comparison  of  the 

results  of  the  Frederick  Hotels,  Ltd.,  as  an  alteration 

has  been  made  in  the  form  of  presenting  the  profit  and 

Hoss  account,  but  there  is  no  question  about  the  com- 

jpany  having  had  a  very  prosperous  year.     Compensa- 

Ition  for  the  occupation  by  the  Government  of  the  Hotel 


Great  Central  and  the  Harbour  Refreshment  Room  at 
Folkestone  accrued  to  June  30  last  is  included  in  the 
trading  profit,  but  the  amount  is  not  separately  stated, 
and  details  of  the  business  done  are  now  withheld. 
Nett  profits  amounted  to  ;^69,58o,  an  increase  of 
;^30,ooo,  and  after  providing  for  debenture  interest  a 
full  year's  dividend  is  paid  on  the  preference  shares, 
leaving  arrears  as  from  January  i,  191 6.  There  re- 
mains a  balance  of  ;^"'28,720,  an  increase  of  ;^5,ooo, 
which  it  is  proposed  to  carry  forward.  Changes  in  the 
balance-sheet  are  mostly  unimportant,  but  investments 
have  increased  ^10,000  (in  War  Loans),  and  cash  is  up 
;^23,ooo,  so  the  position  is  becoming  more  comfort- 
able. The  French  Government  has  not  yet  agreed  the 
company's  claim  for  the  ocupation  of  the  Hotel  Bristol, 
Bcaulieu-sur-Mer. 


Our  Foreign  Trade  in  December. 

It  is  difficult  to  take  a  very  cheerful  view  of  the 
figures  given  in  the  Board  of  Trade  returns  for  the 
closing  month  of  last  year,  more  especially  as  those 
for  November  also  showed  a  decidedly  backward  tend- 
ency. Indeed,  the  nett  increase  of  ;^9,4i5,ooo  in  im- 
ports is  more  than  accounted  for  by  an  advance  from 
;^i, 365,000  to  ;^i  1,855,000  in  miscellaneous  articles 
of  which  no  details  are  given,  but  they  presumably  re- 
present goods  imported  on  public  account  which  were 
not  previously  included  in  the  returns.  In  this  connection 
it  may  be  well  to  repeat  that  since  July  last  the  ac- 
counts include  merchandise  imported  and  exported  in 
public  as  well  as  in  private  ownership  except  exports 
for  the  use  of  H.M.  Forces  on  active  service.  The 
figures  for  earlier  months  include,  in  the  case  of  im- 
ports, foodstuffs  but  not  other  goods  which  at  the  time 
of  importation  belonged  to  H.M.  Government  or  the 
Governments  of  the  Allies.  In  the  case  of  goods  ex- 
ported the  figures  up  to  June  included  articles  bought 
in  the  United  Kingdom  on  behalf  of  the  Allies,  but 
not  those  taken  from  British  Government  stores  of 
bought  by  H.M.  Government,  and  shipped  on  Govern- 
ment vessels.  Consequently,  no  exact  comparison  can 
be  made  with  the  earlier  returns,  but  the  totals  prob- 
ably conceal  a  more  reactionary  tendency  than  appears 
on  the  surface.  However,  the  figures  for  the  month 
and  the  year,   as  they   stand,   are  as  follows  : — 


Imports  . . 
Exports  . . 
Re-exports 


December, 
1917- 


£ 
84,756,512 
37,140,514 
3.179.587 


Compared 
with    1916. 


£ 
9,415,206 
2,787,946 
2,839,046 


Compared 
with  1915. 


£ 
14.469.597 
3.192.995 
4.522.314 


Twelve  Months. 


1,065,256,407 

525,308,991 

69,552,241 

470,395.175 

+  116,749,915 
+  19,029,284 
—  28,013,937 
+  125.734.568 

+  213,363.057 
+  140,440,543 
—    29.509,940 
+  102,432,454 

Exports    

Excess  of  imports 

Imports  last  month  show  an  increase  of  12.4  per  cent., 
and  that,  curiously  enough,  is  also  the  percentage  for 
the  whole  year.  The  decline  in  exports  is  almost  7 
per  cent.,  but  for  the  12  months  there  is  an  advance  of 
3.7  per  cent.  Re-exports,  owing  to  the  scarcity  of  ton- 
nage, make  the  most  unsatisfactory  showing,  with  a 
drop  of  47  per  cent,  last  month  and  of  28f  per  cent, 
for  the  year.  It  will  be  noted  that  the  excess  of  im- 
ports reached  the  formidable  total  of  over  470  millions, 
or  nearly  126  millions  more  than  in  1916.  Looked  at 
from  any  standpoint,  it  is  a  stiff  bill  to  settle,  and  unfor- 
tunately there  is  no  immediate  prospect  of  material  im- 
provement. At  the  same  time,  we  cannot  view  without 
a  certain  amount  of  misgiving  the  fall  in  last  month's 
imports  of  fooilstuffs  from  34^  to  27  millions.  Grain 
and  flour  dropped  ;^2,892,ooo,  or  28  per  cent.,  and 
other  non-dutiable  articles  ;^3,648,ooo,  or  40J  per  cent., 
while  dutiable  articles  fell  ;^i,456,ooo,  or  "aoi  per 
rent.  We  do  not  get  details  as  to  quantities,  but  hav- 
ing regard  to  the  rise  in  prices,  these  figures  must  re- 
present a  very  serious  shrinkage  in  supplies.  Raw 
materials  increased  ;^3, 580,000,  to  which  cotton  con- 
tributed ;^i, 293,000,  or  13J  per  cent.,  but  the  quantity 
w-as  actually  35  per  cent,  smaller.    Oil  seeds,  oil,  &c.. 


58 


^be  Jnveatocs  IReview. 


January  19,    1918. 


increased  ;^"i, 584,000,  and  we  received  nearly  three 
times  the  amount  of  petroleum  at  a  little  over  twice 
the  cost,  but  the  weight  of  cotton  seed  fell  from 
30,450  tons  to  12,750  tons,  while  the  value  was  just 
halved,  and  linseed  fell  from  103,500  qrs.  to  67,800 
qrs.,  and  the  cost  was  only  20  per  cent.  less.  Hides 
and  skins  increased  ;^865,ooo,  or  about  80  per  cent., 
and  the  value  of  flax  rose  from  ;^43,ooo  to  ^1,444,000. 
Iron  atid  steel  advanced  11  per  cent,  in  value,  but  the 
amount  received  was  21J  p>er  cent,  less,  and  in  the 
majority  of  cases  the  tale  is  one  of  smaller  quantities 
and'  higher  prices.  As  already  mentioned,  the  principal 
increase  in  manufactured  articles  is  one  of  loj  millions 
in  the  unenumeraled  group,  but  imports  of  chemicals, 
dyes,  &c.,  more  than  doubled  at  ;^3, 200,000,  and  there 
was  an  increase  of  ;^'i, 600,000,  or  nearly  50  per  cent., 
in   metal  manufactures. 

Exports  were  the  lowest  for  any  month  last  year, 
with  the  single  exception  of  April,  but  December  is 
usually  a  rather  poor  month  for  foreign  trade,  owing  to 
the  holidays  and  other  causes,  and  the  decline 
by  itself  would  not  be  of  much  significance.  Un- 
fortunately, with  the  exception  of  October,  which 
gave  a  total  of  50J  millions,  the  returns  have  been 
steadily  declining  since  July,  notwithstanding  the  in- 
clusion of  public  owned  goods  and  the  not  inconsider- 
able effect  of  rising  prices.  Last  month  there  was  a 
decrease  of  ^'852,00)0,  or  ^4  per  cent.,  in  foodstuffs, 
but  with  so  much  scarcity  at  home  that  may  be  re- 
garded as  satisfactory  rather  than  otherwise.  Raw 
materials  were  a  trifle  lower  on  balance,  and  manufac- 
tured articles  fell  ;^'i,742,ooo,  or  5^  per  cent.  Cotton 
yarn  showed  an  increase  of  13^  per  cent,  in  value,  but 
a  decrease  of  28J  per  cent,  in  quantity,  while  the  corre- 
sponding figures  for  cotton  piece  goods  are  5^  per  cent, 
and  29J  per  cent,  respectively.  Woollen  goods,  on 
the  other  hand,  gained  45  per  cent,  in  value  and  6  per 
cent,  in  amount.  Practically  every  other  leading  line 
.shows  a  decrease — coal  141^  per  cent.,  iron  and  steel 
25i  per  cent.,  machinery  26  per  cent.,  apparel  16  per 
cent.,  and  linen  piece  goods  27  per  cent. 

Turning  to  the  figures  for  the  whole  year  we  find  an 
increase  of  ;£,"36, 145,000  in  food  and  drink.  Grain  and 
flour  advanced  -^^^  1,640,000,  meat  ;^'8,420,ooo,  and 
other  non-dutiable  articles  ;/r2,795,ooo,  but  there  was  a 
Secrease  of  ;^i3,250,<xx)  in  dutialsle  (principally  tea  and 
sugar),  and  of  ;£.3,46o,ooo  in  tobacco,  the  latter  repre- 
senting 47  per  cent.  Most  raw  materials  advanced, 
l5ut  there  was  a  decline  of  ,-£.'14,516,000,  or  30  per  cent., 
in  wood  and  timl>er,  while  the  quantity  fell  55  per  cent. 
Raw  ctitton  increased  ;£'25, 860,000,  or  30  per  cent.,  but 
the  amount  dropped  25  per  cent.  Very  similar  move- 
ments occurred  in  wool  and  other  textile  materials,  but 
we  received  a  considerably  larger  amount  of  hides  and 
paid  35  per  cent,  more  for  them.  Among  articles 
classed  as  manufactured  the  only  important  increase  is 
in  metals — principally  copper  and  tin — which  have 
risen  ;£r4,576,ooo.  On  the  other  hand,  cotton  tissues 
have  fallen  /;4, 447,000,  silk  ^1,728,000,  other  textile 
materials  ;£;3,o7o,ooo,  leather  ;£,'5, 08 1,000,  earthenware 
•^2,-40o,ooo,  and  paper  ;^4, 137,000.  The  nett  increase 
of  £'29,290,000  in  this  group  is  due  to  an  advance  of 
£  48,000,000  in  unenumerated  articles,  no  doubt 
mainly  representing  Government  purchases. 

With  regard  to  exports,  food  and  drink  show  a  fall- 
ing off  of  ;£;i3,i  18,000.  Among  raw  materials  oil  seeds, 
oils,  &c.,  account  for  an  increase  of  ;^3, 438,000,  or 
n<arly  So  per  cent.,  while  the  other  movements  are 
mostly  unimportant.  We  received,  however,  ;£j67o,ooo 
more  for  3,350,000  tons  less  coal  and  coke.  The  only 
important  gains  in  manufactured  articles  are 
£,27,700,000  in  cotton  goods  and  of  £5,658,000  in 
woollens.  Iron  and  steel  manufactures  fell  £11,825,000, 
other  metals  £2,425,000,  cuticry,  &c.,  £1,700,000, 
electrical  jcoods  £1,131,000,  machinery  £790,000, 
.-tpparel  £1,174,000,  chemicals  £3,898,000,  and  paper 
£2,000,000,  but  there  was  an  increase  of  £20,820,000 
in  unenumerated  articles.  It  is  not  a  very  cheerful 
record,  but  with  so  much  of  the  energy  of  the  nation 
concentrated  on  the  production  of  munitions  we  ought 
to  be  gratified  that  it  is  not  a  great  deal  worse. 


With  the  elimination  of  the  figures  for  sugar,  the 
stocks  in  bond  of  the  principal  articles  cease  to  have 
any  particular  interest  or  significance.  The  position 
with  regard  to  tea  is  still  un.satisfactory,  as  the  stock 
during  last  month  fell  400,000  lbs.  to  37,192,000  lbs., 
in  spite  of  promises  that  there  would  be  a  substantial 
improvement.  But,  as  we  said  before,  once  a  panic  is 
created  it  is  by  no  means  easy  to  allay  it,  and  more 
than  six  weeks'  supply  will  have  to  be  visible  before 
the  tendency  to  hoard  is  uprooted.  Cocoa  and  coffee 
both  show  sub.stantial  reductions,  partly  as  they  have 
been  used  as  substitutes  for  tea,  and  partly  because 
imports  have  been  restricted.  However,  there  is  plenty 
of  both  articles  in  hand  for  well  over  twelve  months' 
consumption.  Spirits  and  wine  are  also  abundant,  and 
why  profiteering  in  these  articles  should  be  encouraged 
to  the  extent  that  has  been  the  case  recently  is  inex- 
plicable. Stocks  of  tobacco  are  beginning  to  decline 
rather  rapidly,  but  here  also  there  is  sufficient  for  re- 
quirements a  long  time  ahead.  That  could  have  been 
said  as  regards  tea  a  few  montKs  ago,  and  we  hope 
that  the  danger-point  will  not  be  reached  In  this  case 
also. 


Peace,  Peace — when  there  is  no  Peace, 


Altogether  absorbing  becomes  the  tragic  comedy  now 
being  played  in  the  sight  of  the  world  at  Brest-Litovsk. 
As  far  as  the  facts  are  allowed  to  appear,  the  Prussian 
delegates  seem  to  be  twisting  Trotsky  and  his  com- 
panions round  their  fingers.  At  first  he  stood  out  for 
the  removal  of  the  seat  of  parleying  to  Stockholm  or 
Berne.  The  German  said  "no,"  and  he  gave  waj-. 
Then  he  put  forward  proposals  calculated  to  secure  the 
freedom  of  the  provinces  now  in  German  occupation  to 
decide  what  their  form  of  government  was  to  be.  Ger- 
many acquiesced  in  form  and  completely  denied  in  sub- 
stance, and  so  it  goes  on.  Now'the  talks  are  adjourned 
sine  die.  It  looks  com.'c  to  a  high  degree  in  spite  of  the 
tragedy  behind,  and  not  least  comic  lx;cause  the  Ger- 
mans are  really  being  foiled  bj'  their  own  insane  arro- 
gance; but  the  lesson  their  conduct  offers  for  the 
world's  edification  is  surely  impressive  enough  to  warn 
off  politicians  of  the  Entente  from  falling  into  the  same 
trap.  How  would  it  be  possible  for  any  honest,  sane- 
minded  representative  of  democracy  to  enter  into- 
serious  negotiations  with  insolent  bullies  like  those  put 
forward  by  the  Prussians  to  beguile  or  to  overbear  the 
Russians?  You  could  not  believe  a  word  these  men 
said.  They  do  not  use  language  to  convey  honest  con- 
ceptions of  policy.  Language  is  to  them  a  machine  for 
securing  victory  just  the  same  as  a  mitrailleuse  or  a 
monster  gun  ;  it  is  used  to  coerce  the  foe  they  think  in 
their  power.  It  is  only  their  inconceivably  exaggerated 
conceit,  their  belief  in  their  own  perfections,  which 
saves  the  world,  one  may  say,  from  being  ensnared. 
After  nearly  three  and  a-half  years  of  war  the  German 
appears  to  be  just  as  full  of  belief  in  his  own  perfeo 
tions,  as  confident  that  force  is  the  only  test  of  moral 
right,  as  he  was  when  he  first  entered  Belgium  to  plav 
the  unentramiTKiled  beast  at  the  beginning  of  .August 
or  end  of  July,  1914. 

Mr.  Gibson,  the  Secretary  to  the  .\merican  Embassv 
in  Brussels,  tells  us  in  his  interesting  little  book,  "  .\ 
Diplomat's  Diary,"  of  a  conversation  he  had  with  a 
German  officer  who  was  busy  superintending  the  loot- 
ing, butchery,  and  destruction  at  Louvain  and  also  in 
protecting  the  conveyance  of  the  loot  the  soldiers  were 
busy  collecting.  This  German,  a  Hamburger,  spoke 
English  perfectly,  for  he  had  been  thirty  years  resident 
in  this  country.  One  would  have  thought,  therefore, 
that  he  might  have  acquired  something  of  the 
humanities  that  have  saved  us  from  becoming  victims 
of  the  Teutonic  side  of  our  national  character,  as  well 
as  given  him  a  certain  respect  for  other  human  beings. 
Nothing  of  the  sort.  He  stood  calmly  smoking  a  rank 
cigar,  giA'ing  his  orders  and  looking  on  while  houses 
were  being  gutted,  blown  up,  or  set  fire  to,  and  re- 
marked to  Mr.  Gibson  and  his  companions,  "  We  shaU 
make  this  place  a  desert.     We  shall  wipe  it  out  so  that 


January  19,   1918. 


XLbc  Jnveetors'  "Review. 


59 


it  will  be  hard  to  find  where  Louvain  used  to  stand. 
For  generations  people  will  come  here  to  see  what  we 
have  done,  and  it  will  teach  them  to  respect  Germany, 
and  to  think  twice  before  they  resist  her.  Not  one 
stone  on  another,  I  tell  you.  Kein  stein  auf  ein  under." 
There  you  have  the  Pan-Germanic  spirit,  whose  God  is 
brute  force,  the  spirit  which  Prussia  has  cultivated  to 
such  perfection  that  each  German  soul  appears  to  be 
cased  in  it  as  in  one  of  Hindenburg's  concrete  "  pill- 
boxes "  on  his  lines  of  defence.  So  complete  was  the 
panoply  of  self-glorification  which  encased  this  main's 
mind  that  he  was  altogether  oblivious  to  the  irony  of 
Mr.  Gibson's  assent  when  he  remarked  that  "people 
would  indeed  come  in  after  days  to  see  the  ruins  of 
Louvain." 

Now  a  little  story  of  this  kind  is  full  of  illumination 
as  to  what  is  to  be  expected  when  the  Entente  Powers 
are  trapped  into  insane  negotiations  for  peace. 

Peace  !  peace  !  everybody  seems  to  be  talking  of 
peace  just  now,  and  if  we  were  to  listen  to  what  goes 
on  in  political  circles  at  present  we  should  be  disposed 
to  think  that  a  hollow  peace  is  indeed  to  be  coopered 
together  within  the  next  two  or  three  months.  If  you 
ask  the  reason  why  people  are  so  confident  of  peace,  you 
cannot  get  any  intelligible  answer.  They  simply  say, 
"Peace  is  coming."  Labour  wants  peace,  finance 
wants  peace,  and  a  peace  feeling  is  asserted  to  be  grow- 
ing "to  an  uncontrollable  extent"  within  Germany 
itself.  The  military  faction  and  its  loot-lusting  capitalist 
industrials  may  resist,  are  resisting,  like  the  ruthless 
demons  they  are,  but  they  will  be  beaten. 

Now,  so  far  as  Germany  is  concerned,  we  know 
nothing  of  the  truth,  and  believe  as  little  of  what  we 
read  coming  from  German  sources.  It  is  presumable, 
because  in  accordance  with  human  nature,  that  the 
ruck  of  the  German  plebs  are  quite  as  tired  of  the 
war  as  our  traitor  pacifists  can  be,  as  many  of  the  noisy 
kind  of  [Mlitical  murmurers  and  shirkers  in  all  Allied 
countries  are  never  tired  of  saying  they  are.  But  they 
•may  grumble  and  splutter  impotent  rage  with  a  loud- 
ness proportionate  to  the  extent  of  their  miserv,  and  it 
does  not  follow  that  there  is  any  democratic  feeling 
behind  it  all,  any  sympathy  with  the  harassed  demo- 
cracies of  other  countries,  any  moral  horror  awakened 
for  the  infamies  of  which  they  have  been  gloatingly 
guilty  for  years.  Let  those  who  doubt  what  we  say  get 
hold  of  the  translation  of  that  admirable  book  by  Gaston 
Riou,  which  came  out  quite  early  in  the  war,  the  storv 
of  his  imprisonment  in  Germany,  and  read  what  he  says 
about  the  quality  of  German  patriotism  and  the  roots 
of  animal  selfishness  in  which  it  finds  nourishment.  We 
need  not  repeat  the  passage  again  because  we  have 
given  its  substance  long  ago.  The  book  has  been 
translated  since  then,  and  is  now  accessible  to  e\erv- 
body.  Its  title  is,  "  The  Journal  of  a  Simple  Soldier." 
The  German  mob  is  selfish  now  as  it  was  in  1914-15, 
selfish  and  mean,  a  deluded  horde  of  serfs.  You  can- 
not, let  us  repeat,  enter  into  negotiations  with  people 
of  a  mentality  so  topsy-turvy,  so  perverted,  as  even  the 
best  and  most  high-minded  of  Gerrrtan  people  have 
proved  to  be  whenever  tested.  They  are  still  in  their 
own  idea  superior  to  all  the  world.  They  have  still  a 
"belief  in  their  invincible  force,  and  consequently  abate 
none  of  their  claims.  The  negotiations  with  Russia 
reveal  that  as  much  as  the  unabashed  demands  for 
annexations  still  clamoured  for  by  the  capitalist  iron- 
masters and  war-profiteers.  They  boast  in  Russia  and 
advance  demands  as  arrogant  conquerors,  although  the 
men  who  lead  them  must  know  as  well  as  we  do  that  they 
did  not  conquer  Russia  in  open  fight  any  more  than  they 
have  conquered  Belgium  or  subdued  the  hearts  of  the 
Alsatians  with  six-and-forty  years  of  loutish  oppression. 
They  have  succeeded  in  disintegrating  Russia,  in  break- 
ing up  her  armies,  and  in  overrunning  her  Western 
provinces,  not  because  of  their  military  prowess,  but 
through  their  persistence  in  infamous  intrigue.  Yet 
they  now  claim  the  districts  they  have  overrun  and 
squatted  down  on  as  conquered  territory ;  and  in  the 
same  manner  they  seek  to  adhere .  to  every  foot  of 
ground  they  have  swarmed  down  upon  in  the  Balkans, 
in  Rumania,    in  Italy,  and  in  the  Northern   Provinces 


of  France.  Even  when  they  conceded  by  way  of 
political  manoeuvre  that  Belgium  must  be  given  her 
freedom,  their  determination  to  retain  the  coast  of 
Belgium  is  clung  to  by  such  influential  mouthpieces  of 
Pan-German  dementia  as  old  Admiral  von  Tirpitz. 

As  we  look  at  the  picture  it  is  all  a  phantasmagoria 
of  wild  insanity,  incessantly  testifying  to  the  subser- 
vience of  the  German  mind  to  an  inhuman  ideal.  Yet 
there  are  many  amongst  us  who  would  enter  into 
negotiations  with  these  greed-consumed  and  treacherous 
barbarians  to-morrow,  men  who  invite  us  to  believe  that 
if  we  only  signed  a  treaty  with  William  and  his  nefarious 
gang  all  would  be  well.  It  is  impossible  for  us  to 
commit  any  such  crime  and  betrayal,  and  well  it  is  for 
the  Allies  that  it  should  be  so,  for  here  in  the  United 
Kingdom  especially  we  are  nearing  a  most  dangerous 
juncture  in  our  affairs.  We  are  in  the  hands  of  the 
"  strategic  politician  "  who  sees  a  General  Election 
near  at  hand.  That  event  cannot,  indeed,  be  now  post- 
poned beyond  autumn,  since  the  Peers,  as  we  expected, 
have  surrendered  over  the  question  of  the  women's 
vote,  and  already  the  marshalling  of  forces  and  elabora- 
tion of  tactics  to  capture  that  vote  have  begun. 
"  Labour,"  too,  is  putting  forth'  its  claims  and  gather- 
ing together  its  Parliamentary  candidates.  Other  seg- 
ments of  the  community  will  soon  be  in  the  field,  all 
struggling  to  capture  that  women's  vote. 

What  the  result  will  be  we  have  no  idea,  but  one 
thing  ought  to  be  said  :  women  are  not  the  sentimental 
fools  and  gullible  creatures  that  they  are  currently- 
assumed  to  be.  Let  a  man  but  review  his  own  experi- 
ence in  life  and  say  whether  he  has  not  found  amongst 
his  acquaintance  as  many  wise  women  as  he  has  men  ; 
women  capable  of  exercising  swift  judgment,  and  no 
more  liable  to  be  swept  away  by  mere  sentiment  and 
the  fashionable  shibboleth  of  the  moment  than  the  men. 
Women  can  form  ideals  as  humane  and  enlightened, 
and  cling  to  them  as  loyally  as  men.  An  aged 
lady,  an  old  subscriber  whom  we  have  never  seen, 
whose    memory    goes    back    years    beyond    our    own. 


PUBLIC    LIBRARIES    OF    LONDON 


No.  4.— The  Central  Library,  Fulham. 

This  library,  in  the  Fulham  Road  (near  Parson's 
Green  Lane),  is  a  model  among  municipal  libraries,  not 
so  much  by  reason  of  the  selection  of  books  it  contains, 
as  by  their  accessibility  to  the  public.  The  Reference 
Lib.ary,  or  S:udents'  Room,  contains  about  5,000 
volumes,  arranged  under  the  sections  of  History, 
Biography,  Geography,  the  Fine  and  Useful  Arts, 
Natural  History,  Science,  Languages,  Law.  Political 
Economy,  Social  Sc'ence,  Religion,  Philosophy,  and 
General  Literature;  supplemented  by  dictionaries  and 
encyclopaedias.  The  Scientific  and  Technical  section  is 
kept  well  up  to  date.  The  open  access  system  in  force 
affords  speedy  reference  to  the  particular  volume  it  is 
desired  to  consult ;  it  also  brings  to  the  notice  of  students 
m.any  other  works  with  which  they  were  hitherto 
unfamiliar.  The  leading  reviews,  with  files  of  back 
numbers,  are  also  in  the  Students'  Room, 

The  News  Room,  in  addition  to  newspapers,  etc., 
has  a  Quick  Reference  case  of  Directories  and  Annuals, 
and  files  of  back  numbers  of  periodicals. 

Hours  of  Opening  :  9  a.m.  (Students'  Room,  11  a.m.) 
to  10  p.m. 

By  Route  No.  14  to  the  Library;  Nos.  11,  iia,  28, 
to  Walham  Green,  walking  thence  west  along 
Fulham  Road  ;  No.  22  to  Parson's  Green 
Lane. 


6o 


tTbe  Jnvestors'  IReview* 


January  19,   1918. 


sometimes  sends  this  writer  cheering  letters  of  a 
great  charm.  In  one  but  lately  received  she  speaks 
of  her  early  enthusiasm  for  noble  ideals,  "  full  of 
glorious  dreams  inspired  by  the  marvellous  doings  of 
the  mid-nineteenth  century.  ...  I  stili  cherish 
my  youthful  enthusiasms,  but  know  that  they  are  fur- 
ther than  ever  from  realisation."  Who  among  men  that 
are  old  can  say  as  much? 

It  is  certain  that  the  entrance  of  millions  of  women 
voters  cannot  take  place  without  bringing  changes  im- 
possible to  imagine  beforehand  in  the  structure  and 
orientation  of  our  political  aims.  All  is  so  dark  that 
the  bids  for  the  new  vote  are  likely  to  be  wild,  wide  of 
the  mark,  and  often  unprincipled,  but  we  at  least  do 
not  believe  that  the  women  will  plump  for  peace. 

Now,  one  thing  that  the  strategic  politician  seems  to 
be  sure  about  in  his  own  mind  is  that  the  women  will 
do  just  that.  Consequently,  there  is  already  far  too 
much  peace  chatter  afoot,  spates  of  oratory  ominous 
of  a  coming  betrayal.  What  has  thus  far  come  of  the 
formulae  put  forward  by  Mr.  Lloyd  George  and  Dr. 
Woodrow  Wilson?  Have  their  efforts  contributed  to 
draw  the  Allies  closer  together,  to  cheer  up  the  weak 
amongst  them,  and  give  them  greater  confidence  in  the 
completeness  of  our  prayed  for  victory?  Perhaps;  we 
dare  not  be  sure.  But,  assuming  it  to  be  so,  they 
have  also  here  and  there  come  precious  near  exciting 
doubts  and  prompting  cleavage.  Mr.  George's  speech 
especially  has  hurt  Italy,  damped  the  hopes  of  the 
Bohemians,  of  the  Yugo-Slavs,  of  the  Rumanians,  Ser- 
bians and  Greeks.  There  can  be  no  doubt  about  that, 
although  diplomatically  as  little  is  said  on  the  subject 
as  possible.  For  humanity's  sake,  let  us  have  done 
with  this  kind  of  thing.  If  persevered  in,  these  explain- 
ings,  draftings  of  p>eace  aims,  and  so  forth  will  almost 
certainly  end  in  producing  open  breaches  between  us 
and  some  of  our  Allies.  Alas  !  when  a  General  Election 
looms  near  we  may  remonstrate  and  protest  until  out 
of  breath,  the  talk  is  likely  to  go  on,  even  though  we 
keep  repeating,  "The  war  must  be  won ;  nothing 
short  of  complete  victory  will  serve."  That  is  true; 
all  definitions  of  after-war  plans  are  idle  wind  without 
that.  Why,  then,  waste  time  in  bellows-blowi"ng  ?  In 
one  important  sense  we  have  won  the  war  long  ago, 
the  condition  of  the  foe  proves  it;  but  the  Prussian 
military  caste  of  savages  has  not  yet  been  destroyed. 
It  is  in  extremis  probably,  judging  by  its  lying  and 
threats.  Why  pause  then,  and  surrender  on  the  eve 
di  triumph?  Peace  now  would  leave  betrayed  man- 
kind at  the  door  of  hell. 


Premium     Bonds  and    Misplaced 
Religiosity. 

We  have  not  yet  seen  the  report  of  the  committee 
appointed  to  examine  the  premium  bond  method  of  pro- 
curing money  with  which  to  carry  on  the  war,  but  the 
always  careful  and  well-informed  Parliamentary  corre- 
spondent of  the  Daily  Chronicle  says  its  decision  is 
adverse,  and  based  on  the  following  reasons  : — i.  Be- 
cause of  the  hostility  of  powerful  banking  and  financial 
interests.  2.  Because  of  the  prejudice  of  religious 
bodies,  who  feel  that  there  is  a  gambling  taint  about 
them.  3.  Because,  before  an  issue  could  be  made, 
legislation  would  be  necessary,  and  any  Bill  for  the 
purpose  would  be  strongly  resisted  in  the  House  of 
Commons. 

Of  these  three  reasons,  the  first  alone  is  of  weight, 
if  true.  The  second  and  third  are,  in  the  slang  of  the 
racing  stable,  "foals  by  Ignorance  out  of  Cant."  In 
the  days  of  the  mad  gamble  of  the  "  Kaffir  Circus  "  on 
the  Stock  Exchange  we  came  across  not  a  few  pious 
people — or  professedly  religious,  at  least — dissenting 
and  other,  who  plunged  and  lost  by  plunging  in  its 
maelstrom.  That  was  "gambling,"  if  you  like, 
gambling  of  the  most  unprincipled  descriptiont  because 
a  player  was  ever  tempted  by  it  to  stake  his  all  on 
a  mere  chance,  nay,  often  on  the  throw  of  loaded  dice. 
Yet  we  never  heard  winners  in  that  unwholesome  centre 
of  hazard  utter  a  word  in  condemnation  of  the  demoral- 


isation it  undoubtedly  spread  through  all  ranks  of  the 
community,  no  matter  how  "  pious  "  said  winner  might 
be.  Now,  compared  with  that  maddening  play,  the 
premium  bond  is  purity  and  righteousness  itself,  and 
in  no  sense  a  gambling  counter.  The  investor  does 
not  risk  the  loss  of  his  money  in  buying,  he  cannot  well 
"  sell  a  bear  "  of  the  bonds,  nor  can  he  plunge  beyond 
his  means.  He  is  offered  no  temptation  to,  even  if  a 
few  of  the  prizes  or  bonuses  are  large,  because  the 
chance  of  great  gain  is  too  remote,  and  most  of  the 
bonuses  too  insignificant.  There  is  nothing  deceiving 
cither  in  the  mode  of  issue,  and  you  do  not  require  to 
warn  the  buyer  not  to  allow  "  his  bank  balance  to 
fraternise  with  the  Kaiser,"  as  one  of  Sir  Robert  Kin- 
dersley's  National  War  Bond  advertisements  recently 
did — droll  idea  the  compiler  of  that  advertisement  must 
have  had  of  what  may  constitute  a  "  bank  balance  " — 
nor  is  touting  of  any  kind  needed  to  tempt  the  mob  to 
come  and  buy.  AH  is  straight  and  above-board 
throughout. 

The  Daily  Chronicle  correspondent  goes  on,  appar- 
ently on  his  own  account,  to  draw  a  picture  of  the  de- 
moralisation produced  by  the  "  lottery  loans  "  fashion- 
able in  this  country  at  the  beginning  of  last  century, 
when  money  had  to  be  obtained  anyhow  to  enable  us  to 
beat  Bonaparte.  It  is  not  a  fair  comparison,  because  in 
those  lottery  loans  the  player  staked  and  lost  his  money, 
and  might  stake  more  than  he  had  in  his  eagerness  to 
capture  an  immediate  great  prize.  He  was  also  the 
victim  of  endless  rogueries.  In  the  premium  bond,  as 
issued  on  the  Continent,  there  is  no  loss  of  money  nor 
any  temptation  to  gamble  thus,  but  only,  at  worst,  a 
reduction  in  the  interest  the  money  invested  may  earn, 
and  no  trickery  of  any  description.  To  say,  therefore, 
as  Mr.  Harry  Jones  does  in  the  Daily  Chronicle,  that 
"  not  only  would  British  ct^edit  be  depreciated  through- 
out the  world  by  a  return  to  the  bad  old  practices,  but 
the  State,  becoming  the  patron  of  gambling,  would 
no  longer  be  in  a  position  to  suppress  those  newspaper 
and  magazine  lotteries  which  have  been  condemned  by 
Parliament  and  the  judges  and  magistrates  repeatedly," 
is  to  exhibit  the  dogmatism  of  prejudice  and  ignorance. 
He  is  without  knowledge  of  that  on  which  he  affects  to 
speak  with  authority. 

This  journal  has  advocated  issues — not  merely  one 
issue,  but  a  series  of  issues — of  premium  bonds  mainly 
for  these  reasons: — (i)  That  much  money  now  wasted 
would  thereby  be  drawn  into  the  Exchequer  which  it 
could  not  otherwise  get  at ;  (2)  that  this  money  could 
be  borrowed  on  the  average,  and  bonuses  or  premiums 
allowed  for,  at  rates  generally  quite  sensibly  lower 
than  the  Government  has  otherwise  to  offer  and  pay ; 
(3)  that  by  means  of  these  bonds — sold  in  units  ranging 
from  ;^i,  say,  up  to  ;^20 — hundreds  of  thousands 
(probably  some  millions,  even)  in  the  country  would 
become  personally  interested  in  the  maintenance  of  our 
public  credit  in  a  way  and  to  a  degree  calculated  to 
protect  us  against  efforts  at  debt  repudiation  ;  and  {4) 
because  only  thus  can  the  "  sporting  instincts  "  and 
habits  of  the  p^ple — even  of  the  pious,  as  witness  the 
charity  raffle — ^be  utilised  for  the  nation's  benefit  in  its 
sore  need.  As  we  now  go  on,  will  as  many  as  2,000,000 
separate  individuals  out  of  our  45,000,000  be  directly 
interested  in  keeping  British  credit  inviolate  when 
the  after-the-war  pressure  of  debt  falls  upon  nation 
and  Empire?  We  gravely  doubt  it,  and  the 
number  of  subscribers  to  the  current  modes  of  loan- 
raising  reinforce  that  doubt.  How  are  those  who  have 
going  to  buttress  themselves  against  the  assaults  of 
those  who  Jiave  not  when  the  pressure  of  taxation  en- 
genders discontent  among  the  masses?  Is  there  not 
already  talk  of  "  capital  conscription,"  even  ixi  high 
places  ? 


The  death  of  Mr.  T.  A.  Welton,  of  the  firm  of  Messrs.  WeltoD 
and  Bond,  chartered  accountants,  has  left  Mr.  R.  C.  Martin  as 
the  sole  partner.  We  are  informed  that  an  arrangement  was 
concluded  on  Thursday  for  the  business  of  that  firm  to  be  assumed 
immediately  by  Messrs.  Deloitte,  Plender,  Griffiths  and  Co.,  of 
5,  London  Wall  Buildings,  E.C.  2,  Mr.  Martin  becoming  a 
partner  in  Messrs.  Deloitte  and  Co. 


January  19,  1918. 


Zbc  Jnvestora'  TReview. 


61 


By-the-Way  War  Notes. 


"  Nothing-  going  on  at  the  front  "  thinks  the  casual 
•  reader,  and  passes  on  to  read  about  the  latest  murder, 
burglary,  or  divorce  case.      There  could  be  no  greater 
mistake.     Except   when,  as   now,   "General  Winter" 
smothers  the  land  in  a  mantle  of  snow  or  drowns  it  in 
cascades  of  rain  there  is  everything  going  on.     Day  and 
night  operations  never  cease  along  that  thousand-mile 
front    from    Venice    to   Ostend.      In    Macedonia,    too, 
activity  of  one  sort  or  another  is  incessant,  and  it  must 
not  be  assumed  because  there  is  no  news  that  there  is 
nothing  going  on.     In  the  air  and  among  the  batteries 
of  guns  the  siege  progresses.     The  wearing  down,  the 
exhaustion  of  the  enemy,  is  proceeding  continually  and 
effectually,  as  one  can  tell  by  his  screaming  and  fevered 
dodgery.     Never  since  the  war  began  has  such  restless- 
ness, such  whirl  of  comings  and  goings  been  seen  in 
Berlin.      It   would    be    irresistibly    droll    to  watch    the 
fellows  at  the  scuttle  and  scheming  had  we  no  whole- 
sale killing  on  hand  to  be  accomplished.     As  it  is,  what 
we  are  told  by  the  venal  and  tame  Press  of  Germany 
at  best   hardly  lets  us  see  a  fraction  of  the  play  now- 
staged     there.       Great    antagonism    is    said    to    have 
developed  between  the  neckband  noose  military  party 
and  the  various  shades  of  "independent"  groups   of 
politicians.      It    is    annexationists    versus    non-annexa- 
tionists,  and  the  former  are  said  to  have  won,  in  the 
arrangement  of  a  compromise.      Hindenburg  is  to  be 
allowed  a  free  hand  to  smash  the  Allies  in  the  West, 
and  drive  the    English   into  the  .sea.      He  is  naturally 
certain  he  can  do  that  still,  in  spite  of  the  defeats  he  and 
his  predecessors  have  suffered  and  the  millions  of  his 
fellow-men  sacrificed  in  previous  efforts,  in  spite  also  of 
the  degeneracy  among  his  troops.     On  the  other  hand, 
Kuhlmann  in  the  East  is  to  be  at  liberty  to  befoozle  the 
Russians  to  the  utmost  of  his  skill  as  a  "confidence 
trick  "  man — provided  he  gives  nothing  away,  not  even 
occupied  territory  indubitably  Russian,  and  can  degrade 
Russia  to  the  position  of  vassal. 

We  wait  with  considerable  interest  to  see  these 
"engineers"  "hoist  with  their  own  petards,"  and 
while  waiting  ask  readers  to  note  how  almost  every 
assertion,  every  move  made  by  these  Prussian  boars  at 
bay,  is  directed  towards  one  definite  end,  which  is  to 
induce  a  similar  state  of  scaredness  and  divided  counsels 
here  with  regard  to  that  "great  and  triumphant 
assault  "  which,  we  are  day  by  day  assured,  is  about  to 
be  launched  against  the  Allied  front  in  the  West.  There 
must  be  a  feverishly  longed-for  result  expected  from  all 
this  expenditure  of  boasts  and  menacing  language.  The 
ince.ssantly  advertised  preparations  .now  alleged  to  be 
making  for  our  destruction  must  have  some  hidden 
design  behind  them  other  than  mere  murder.  What  is 
it?  An  assault  in  Rumania,  on  the  Italian  lines? 
Against  the  Anglo-French  lines  in  Macedonia?  In 
Palestine  or  Mesopotamia?  We  do  not  know  in  the 
least  or  care  much.  All  are  improbable  because  difficult. 
Our  duty  is  to  be  ready  everyvyhere  to  be  in  a  position 
to  give  the  enemy  the  reception  he  deserves.  We  only 
wish  he  would  come  out  and  on  with  his  tremendous 
forces  and  war  material  and  give  us  the  chance  to  end 
him.  But  he  won't,  and  the  louder,  the  more  menacing 
his  threats  the  more  we  suspect  him  of  lying.  The 
internal  condition  of  Germany  cannot  be  improving, 
even  though  war  work  is  still  plentiful — in  foundries 
and  poison  and  explosives  factories  at  least — for  most 
German  industries  that  were  useful  and  sources  of 
profit  to  the  bankers,  capitalists,  and  workmen  before 
William  and  his  gang  ordered  the  war  have  been  living 
in  idleness  for  years.  With  little  food  in  their  stomachs 
or  clothing  on  their  backs  the  multitude  of  the  deluded 
poor  is,  we  can  well  understand,  becoming  an  object  of 
the  keenest  apprehension  to  the  Junker  mind.  We  have 
here,  in  short,  another  source  of  the  Hindenburg- 
Ludendorf-Biilow-Hertling-Kron — Printz  activity  in 
flying  peace  kites  and  concocting  fairy  tales  to  beguile. 
What  if  the  gun-pulp  on  legs  took  to  shooting  their 
masters?    Even  slaves  so  abject  might  one  day. 

,JB}it„where  isthe^Kaiserand.bis  "God"?   William's 


"  beloved  people,"  whom  he  is  obligingly  sending  to 
us  on  all  fronts  to  be  killed  or  starved,  are  cold.  Can- 
not the  "indubitable"  ally  of  that  God  William  pat- 
ronises keep  them  warm?  From  his  character  and 
antecedents  we  should  judge  him  to  be  particularly  well 
qualified  to  do  that.  If  not,  then  we  fear  the  mad, 
deformed  little  monster  who  arrogates  to  himself  the 
position  and  absolute  power  of  a  Roman  Kaiser — he 
himself  is  only  a  German  pinchbeck  one — may  soon 
find  neither  a  God  nor  a  people  to  lean  upon.  In  fact, 
even  now  his  life  must  be  pretty  miserable,  in  spite  of 
all  that  his  ally  am.ong  the  deities  of  Hades  or  Wal- 
halla  can  do  to  keep  him  up.  But  he  is  still  the 
"  all  highest  war  lord  " — to  himself. 

But  the  war  is  not  over,  or  nearly,  never  forget  that. 
It  is  all  very  well,  and  a  relaxation  at  times,  to  watch 
the  conceit-putrid  Prussian  at  his  diplomacy,  for  his 
cunning  sometimes  fascinates,  but  never  forget  that 
while  he  splutters  around  mouthing  bastard  humani- 
tarianism,  well  seasoned  with  the  bitter  almonds  of 
"  reservations,"  and  hedged  by  conditions  impossible 
of  fulfilment,  he  continues  to  sink  our  ships — including 
hospital  ships,  to  send  his  cowardly  submarines  to  bom- 
bard our  defenceless  towns — as  witness  Yarmouth  this 
week — and  generally  to  play  at  murder  like  a  savage 
beast  all  through  the  war  arena.  We  have  got  to  de- 
feat and  disarm  the  ruffian,  and  dare  not  turn  to  the 
right  or  to  the  left  until  that  supreme  duty  has  been 
fulfilled.  More  men  are  wanted  for  this  work,  Sir 
.Auckland  Geddes  tells  us,  and  they  must  be  forth- 
coming, can  easily  Ise  found  if  our  captains  of  industry 
are  left  at  liberty  to  deal  with  their  workmen  in  their 
own  way,  if  our  bureaucracy  is  cleaner  and  reorganised 
as  a  bank  or  merchant's  office  is,  if  the  military  pundits 
can  learn  sense.  Remember  it  is  not  mere  armies  we 
have  to  defeat,  it  is  a  nation  in  arms,  mad  with  debased 
lusts  and  besieged. 

Last  week  only  four  British  merchant  vessels  of 
1,600  tons  and  over  were  sunk  by  this  brutal  foe. 
"Only,"  say  the  newspapers,  but  the  number  is  four 
too  many.  We  welcome  the  decrease,  however,  from 
the  17  sunk  in  each  of  the  two  previous  weeks  as 
earnest  of  what  the  changes  at  the  Admiralty  and  the 
sea  command  may  do.  In  all,  six  are  returned  as  sunk 
or  lost,  but  one  was  actually  sunk  in  the  week  ended 
December  22  and  one  in  that  ended  January  5.  Of  the 
two  smaller  vessels  also  returned  as  sunk,  one  belongs 
to  the  week  ended  November  4,  so  that  only  five  ships 
of  all  sizes  were  lost  last  week  so  far  as  is  known,  ex- 
clusive of  one  fishing  vessel,  out  of  two  returned,  the 
other  having  been  sunk  a  month  ago.  In  all,  there- 
fore, only  six  British  ships  of  all  sizes  fell  victims  to  the 
cowardly  pirates  last  week,  and  on  three  vessels  out  of 
five  returned  the  attaci<s  failed  ;  of  the  other  two  re- 
turned as  having  been  successful  in  escaping,  the  one 
beat  the  enemy  off  three  weeks,  and  the  other  a 
fortnight  since.  Last  week,  2,106  ships  of  all  sizes  and 
nationalities  arrived  and  2,184  'eft  our  ports,  or  4,290 
altogether.  The  average  weekly  losses  for  the  35 
weeks,  March  to  October,  were  18  big  ships,  6.4  small, 
and  14.6  escapes.  For  November  the  averages  fell  to 
9.4  big,  4.6  small,  and  6.4  escapes.  But  for  December 
the  averages  rose  to  14.25  Ir^rge,  5  small,  and  9.47 
escapes.  Doubtless  the  long,  dark  nights  and  foul 
weather  helped  the  sly  foe  much,  but  he  has  got  to  be 
beaten  all  the  same.  .And  he  will  be;  never  doubt  the 
capacity  of  our  Navy.  But  what  of  new  ships  to  take 
the  place  of  the  ones  lost?  Well,  they  are  coming 
along,  but  coming  much  more  slowly  than  if  the 
responsibility  for  their  production  had  been  laid  ujx)n  ' 
those  in  the  tr.'ide  to  <->rganise  that  part  of  our  defence. 
How  much  money  and  what  proportion  of  the  available 
labour  are  still  being  absorbed  by  the  Ciovernment  on 
the  construction  of  monster  ships  of  war — on  ghastly 
death-traps,  as  helpless  against  the  mine  and  torpedo, 
and  In  submarine  warfare  as  now  waged  by  the  Prus- 
sian, so  many  floating  gasometers? 


The  Yokohama  Specie  Bank,  Ltd.,  announce  the  opening  of  a 
branch  at  Rangoon,  Burma. 


62 


tlbe  Jnvestore*  "Keview. 


January  19,   1918. 


WILLIAMS    DEACON'S    BANK 

Comprising  the  following:  LIMITED 

WILLIAMS  DEACON  &  CO  .LONDON         ...         Founded  as  Raymond,  Williams,  Vere,  Lowe,  &  Fletcher  1771 

HEYWOOD  BROTHERS  &  CO.,  ST.  ANN  STREET,  MANCHESTER Founded  1788 

SHEFFIELD  &  ROTHERHAM  JOINT  STOCK  BANKING  CO.,  LTD.     Founded  as  Walkers*  Stanley  about  1790 

HARDCASTLE,  CROSS.  &  CO.,  BOLTON        Founded  1818 

CLEMENT  ROYDS  &  CO.,  ROCHDALE  Foun  ed  1819 

MANCHESTER  &  SALFORD  BANK,  MANCHESTER         EsUblished  1836 


DIRECTORS. 


CAPTAIN  GERARD  POWYS  DEWHURST,  Chairman. 
WM.  BARROTT  MONTFORT    BIRD, 
WILLIAM  FRANCIS  COURTHOPE. 
SIR  KENNETH  IRWIN  CROSSLEY,  Bart., 
GEORGE  REYNOLDS  DA  VIES, 
JOHN  FRANCIS  WILLIAM  DEACON, 
MAJOR  E.  A.  J.  JOHNSON-FERGUSON, 


BENJAMIN  GEORGE  WOOD,  Deputy-Chairman. 
JOHN  WANKLYN  McCONNEL, 
WILLIAM  ALDAM   MILNER. 
HENRY  GARWOOD  SEAMAN. 

COLONEL   SIR  ROBERT  WILLIAMS,  Bart,  MP. 
GEORGE  HERVEY  WOOD. 


General  Manager  ...  ...  ...  REGIN.ALD  THOMAS  HINDLEY. 

Assistant  General  Manager      ...  ...  JOHN  MOODIE. 

LONDON    OFFICE:     20,    BIRCHIN-LANE,    E.G.  3.  I  MANCHESTER    OFFICE:    MOSLEY    STREET. 

Manager— J.  J.  MEAGHER.  |    Manager— H.  BRADBURN.    Secretary— E   A.  WILLIAMS 

AND  114  BRANCHES  and  SUB-BRANCHES  in  LONDON.  LANCASHIRE,  CHESHIRE,  YORKSHIRE  and  DERBYSHIRE. 


BALANCE-SHEET,  Deoember  31  *t,  1917. 


LIABILITIES. 


s,  d. 


Capital :  ij6,«5o  £io  Shares 7,811,500    o 

Of  which  paid  up  ;^8  per 

Share  

Reserve  Fund        

Unpaid  Dividends  1,780    8    7 

Dividend,  December,  1917       87,300    o    o 


1,250,000 
750,000 


Amount  due  on  Current,  Deposit,  and  other  Accounts 
Acceptances  and  Credits  Opened  on  behalf  of  Customers 

Foreign  Bills  Negotiated  

4tebate  Account 

Balance  of  Profit  and  Loss  cirried  forward 


89,280  8 
28,443,615  18 
1,416,374  19 
26,783  15 
50,947  J8 
2o,Si  1    7 


ASSETS. 

C         s.  d. 

Cash  on  hand  and  at  the  Bank  of  England. .     6,193,198  t6  6 

Money  at  Call  and  at  Notice 2,541,77010  7 

British  Government  Securities        ..  

Indian  and  Colonial  Government  Securities,  English  Railway 

and  Municipal  Stacks,  and  other  Investments 
Bills  of  Exchange,  including  Treasury  Bills       


^32,047,814    8    1 


Advances  on  Current  Accounts  and  Loans  on  Security 
Acceptances  and  Credits  Issued  on  behalf  of  Customers,  as 

per  contra 

Foreign  Bills  Negotiated,  as  per  contra 

Bank  Premises  in  London,  Manchester,  and  elsewhere 


8.734.9*9  7    « 

5,289,478  l6    9 

841, )6s  6    0 

5.100,815  19    I 

£19,966,429  8  ■■ 

10,179.795  >7  11 

1.4  6,374  «9    5 

26,783  15    7 

458,4}0  6    3 

£32,047.8'4  8    • 


REPORT    OF    THE    AUDITORS. 

WE  REPORT  TO  THE  SHAREHOLDERS  that  we  have  examined  the  Accounts  and  verified  the  Investments  of  the  Bank,  also  that  we  have  compared  the 
Bamnce  Sheet  in  detail  with  the  Books  at  the  Head  Office  and  with  the  Certified  Returns  from  Branches,  and  have  obtained  all  the  information  .nd  explanations 
we  have  required.  In  our  opinion  the  above  Balance  Sheet  is  properly  drawn  up  so  as  to  exhibit  a  true  and  correct  view  of  the  state  of  the  Company's  affairs 
according  to  the  best  of  our  information  and  the  explanations  given  to  us  (including  those  expressed  in  the  Report  of  the  Directors  to  the  Shareholders)  and  as  shown 
by  the  Books  of  the  Company.  ASHWORTH,    MOSLEY  &  CO., 

Manchester,  loth  January,  1918.  Chartered  Accountants,  Auditors. 

Every  Desoplption  of  British  and  Foreign  Banking  Businse  transacted. 


♦   THE    » 

DISTRICT  BANK 

Tne  ManchesKT  &LiverpoolDistrict 
Bankiiig  Compann  Limited 


Paid-up  Capital 
Reserve  Fund 


Deposits 

Cash,  &c.,  and  Bills 

Investments 

Advances 


£ 
1,896,000 
1,250,000 

40,592,887 

20,293,964 

8,942,617 

14,608,120 


3lst  December,  1917. 


Head  Office :    Spring  Gardens,  Manchester. 

London  Office  :  75,  Cornhill,  E.G.  Liverpool  Office  :  Water  Street 

and    216    Branches  and  Sub-branches  in  Lancashire,  Cheshire,  Staffordshire,  Shrop- 
shire, Yorkshire,  Derbyshire,  Cumberland,  Westmorland  and  North  Wales. 


Applications  received  at  every  oflSce  for 

NATIONAL    WAR     BONDS. 

Banlc  of  England  issue  in  multiples  of  £50. 

Post  Office  issue  in  multiples  of  £5. 

Nominative  Bonds  £5  each  issued  in  exchange  for  cash. 


January  19,  1918. 


XTbe  Jnveetors'  TReview 


63 


Xlbe  investors'  IRepiew. 


Money    and   Credit   Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5J  percent. on 
Thursday,  April  5,  1917.) 


I 


I 


Norfolk  House,  Friday  Evening. 

One  of  the  most  interesting  points  about  the  officially 
induced  reduction  in  the  rate  of  interest  allowed  on 
Treasury  bills  is  the  effect  it  may  have  on  foreign  ex- 
changes. Below  we  summarise  the  influences  that  have 
recently  tended  to  turn  these  exchanges  less  in  our 
favour,  but,  in  addition  to  these,  the  current  value  of 
credit  in  the  open  market  must  exercise  some  influence. 
It  cannot  have  any  effect  of  a  seriously  disturbing  kind, 
and  may  do  good  if  it  eases  the  current  financing  of  our 
more  heavily  weighted  Allies.  Therefore,  we  are  dis- 
posed to  welcome  more  than  ever  the  lowering  of  the 
rate  paid  on  Treasurx  bills.  Money  durmg  the  week 
has  been  in  fair  demaixi,  but  there  is  never  more  than  a 
fluctuation  of  i  per  cent,  or  so  in  the  price  of  day-to-day 
money.  Sometimes  it  is  down  to  3  per  cent,  as  an 
over-night  rate,  perhaps,  but  usually  the  quotation  is 
3I.1  per  cent,  and  3^  to  3f  for  seven-day  loans. 
All  discount  quotations  are  as  they  were  a  week  ago, 
and  as  set  forth  in  our  table.  The  French  Treasury 
bills  which  fell  due  this  week  were  renewed  with  no 
difficulty  or  disturbance  to  the  market  whatsoever,  and 
anxiety^  has  also  been  removed,  as  noted  below,  with 
regard  to  the  Russian  bills  whose  term  had  expired. 

Changes  in  the  Bank  return  were  much  less 
stupendous  this  week  Uian  last.  The  largest  move- 
ment was  a  gain  of  ;^3, 518,000  in  the  public  deposits. 
This  money  wa's  found  by  drawing  ;^i, 944,000  off  other 
deposits  and  by  the  liorrowing  of  ;^i, 617,000  on  other 
securities  bv  the  market.  The  note  circulation  has 
shrunk  £^378,000,  and  the  coin  and  bullion  is  ^311,000 
less,  so  that  the  diminution  in  the  notes  afloat  increased 
the  reserve  by  ;^67,ooo.  Owing  to  the  nett  increase  in 
the  liabilities  on  deposits,  however,  the  proportion  of 
reserve  to  liabilities  is  about  \  per  cent,  down  at 
19I  per  cent. 

There  have  been  several  interesting  movements  in 
the  foreign  exchange  market  this  week.  The  franc 
has  continued  to  improve  in  value,  owing  to  the  ad- 
vances made  by  the  United  States,  and  the  Paris  Ex- 
change touched  27  fr.  to  the  pound  on  Wednesday  for 
the  first  time  since  August,  1915.  The  Swiss  exchange 
has  risen  5  to  21.25  fr.,  and  the  Spanish  to  19.50  p.  in 
the  expectation  of  arrangements  being  made  to  regu- 
late them  in  the  near  future.  Scandinavian  rates  have 
relapsed  rather  sharply  on  fading  hopes  of  an  early 
peace,  Stockholm  being  quoted  at  14.41-I  kr.,  Chris- 
tiania  at  14.95  '^''.,  and  Copenhagen  at  15.57^  kr. 
Petrograd  has  declined  10  to  362^,  Montreal  has  risen 
further  to  $4.81*.  Buenos  Ay  res,  on  the  publication 
of  the  details  of  "the  Argentine  credit,  fell  if  to  5ijd. 
For  the  purpose's  of  the  AUied  credit  the  sterling  ex- 
change has  been  fixed  at  5od.  to  the  dollar. 

Although  there  was,  not  unnaturally,  a  slight  delay 
in  meeting  the  coupons  which  fell  due  on  Tuesday  on 
'1  the   Russian   Government   4^   per  cent,    loan  of    1909, 

!  funds  were  duly  provided  during  the  course  of  the  day, 

and  payments  were  immediately  begun  by  the  issu- 
ing house.  On  the  same  day  coupons  fell  due  on  four 
Russian  municipal  .loans,  those  of  Baku,  Kieff,  Nico- 
_  laef,  and  Saratof.  No  funds  or  instructions  were 
IK  forthcoming  on  that  day,  but  there  is  no  reason  to  sup- 
IH^  pose  that  payment  will  not  be  made  after  the  usual 
I^K  slight  delay  which  occurs  in  meeting  nowadays  Hus- 
I^K  sian  obligations.     With   regard  to  the   Russian  credit 

■""■""" ""■""'■"■ 


I 


Chancellor  of  the  Exchequer  announces  that  he  has 
made  arrangements  to  take  up  these  bills  in  exchange 
for  12-year  Exchequer  bonds  at  par,  the  present  price 
being  about  82.  The  amount  involved  is  ^17,500,000, 
but  the  Government  had  no  option  in  the  circumstances 
but  to  come  to  the  rescue  of  the  purchaser^  of  the  bills. 
An  official  announcement  will  shortly  be  made  grant- 
ing a  valuable  concession  to  holders  of  War  Savings 
Certificates.  These  15s.  6d.  certificates  become  redeem, 
able  in  five  years  from  the  date  of  purchase  at  ;^i, 
which  is  equivalent  to  compound  interest  at  ;^5  4s.  7d. 
per  cent.  The  interest,  however,  is  free  of  tax,  so 
that  the  gross  yield  is  really  equivalent  to  £6  19s.  5d. 
per  cent.  On  account  of  their  exemption  from  taxa- 
tion, and  in  view  of  the  fact  that  they  are  repayable 
at  any  time  on  demand,  these  certificates  are  the  war 
investment  par  excellence.  These  attractions,  how- 
ever, are  to  be  still  further  increased  by  giving  an 
option  to  a  holder  to  postpone  the  redemption  of  all 
his  certificates  to  five  years  after  the  date  of  the  pur- 
chase of  his  last  certificate,  the  individual's  holding 
being  restricted  to  ^^500.  Thus,  if  a  holder  pur- 
chased 499  certificates  in  February,  1916,  when  they 
were  first  issued,  and  purchased  the  remaining  certifi- 
cate now,  he  can  postpone  the  redemption  of  the  499 
certificates  from  February,  1921,  to  January,  1923,  and 
receive  interest  during  the  period  of  extension  of  id. 
per  month  per  certificate,  which  is  equal  to  5  per 
cent.,  free  of  tax.  This  concessfon  will  undoubtedly 
stimulate  sales  of  these  certificates. 

Silver. 
.A.11  has  been  quiet  in  the  Silver  market,  the  price 
of  the  metal  being  steady  at  45jd.  per  oz.  until  Tues- 
day, when  it  dropped  to  44^d.,  and  on  Thursday  it  re- 
ceded .still  further  to  44fd.  The  China  exchange, 
Mocatta's  circular  tells  us,  has  shown  an  easier 
tendency,  and  this  encouraged  sellers  in  America  to 
reduce  their  holdings  of  the  metal,  hence  the  weakness 
of  the  market.  To  add  to  this  the  Indian  currency 
returns  show  a  heavy  drop  in  the  reserve  of  rupees. 
It  has  declined  more  t^an  six  crores  during  the  last 
month,  and  now  stands  at  less  than  18  crores,  so  that 
much  silver  must  have  come  out  from  that  reservoir. 
The  United  States  Government  continues  to  pay  high 
prices  in  order  to  secure  silver  for  subsidiary  coinage, 
the  same  circlilar  tells  us,  but  'there  is  little  doing  in 
America  beyond  that.  The  stocks  of  silver  are  given 
in  Montagu's  circular  at  3,700  bars  in  Bombay,  un- 
changed, and  at  25,500,000  ozs.  in  sycee  and 
$13,000,000  in  Shanghai,  an  increase  of  1,000,000  ozs. 
in  sycee,  and  a  decrease  of  $200,000. 


Applications  for  the  Rs.  60,00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Rs.  2,19,55,000.  Of  the^ 
Rs.  55,49,000  were  allotted  in  deferred  transfers,  and 
Rs.  4,82,000  in  immediate  transfers.  Tenders  for  bills  and  de- 
ferred transfers  at  is.  4  29-32d.  and  for  immediate  transfers 
at  IS.  5d.  received  about  27  per  cent.  Since  April  last 
Rs.  38,60,00,000  have  been  sold,  realising  jf  26,455,684.  Next 
week  60  lakhs  will  again  be  offered. 


BANK    OF    ENGLAND, 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 
Week  ending  on  Wednesday.  January  16,  1918. 


Notes  Issued 


ISSUE    DEPARTMENT. 

t         I 
••    76,075,670  i  Government Debl,, 
other  Securities    .. 
Gold  Coin  and  BullioD 
Silver  Bullion 


£76,075,670 


£ 
11,015,100 

r,434,9«: 
57,625.670 


f  76,075  670 


BANKING   DEPARTMENT. 


Proprietois'  CipltBl        .. 

Rest 

Pnblio  Deposits(lnolndlng 
Bxcbejuer,  Savings 
Banks, Comoiissioners 
of  National  Debt,  and 
Dividend  Accounts) . , 

Other  Deposits 

Seven  Day  and  other  Bllli 


£          I  £ 

■4.553.000     Government  Securities  ..  56,708,151 

31362,587     Other  Securities    ..        ..  92,378,457 

Notes 30,750,290 

Gold  and  Silver  Coin     ..  1,142,4^8 


41,416.146 

121,589,360 

18,243 


£180,939,336  £180,939,336 

Dated  January  17,  1918.  -J-iG.  NAIRNE,  Chief  Cashier.  - 


«4 


dbe  Jnveetore'  TRevlew. 


January  19,   1918. 


BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
Jan.  17. 

, 

Jan.  9. 
1918. 

Jan.  .6, 
igi8. 

iDoreasa. 

Deotrasa. 

C 

Liabililles. 

C 

3.3*2.587 

£ 

£ 

3,396.034 

Rest 

3,3f'0,8o5 

1,782 

5  ■,324,995 

Pub.  Depositt . . 
Other    do. 

37,898,589 

41,416,146 

3,517.557 

— 

137,699.276 

123,533,523 

121,589,3(0 

» ,944, 1 63 

25.327 

r'JayBills       .. 

8,989 

18,243 

9.254 

— 

Assets. 

Decrease. 

Increase. 

»33,833,I90 

Gov.  Seourlilea. 

56,868,170 

56,768,151 

100,019 

— 

37,381,804 

Other       do. 

90.661,200 

92,278,457 

— 

1,617,257 

35.733,648 

Total  Resefve.. 

3',8l5,536 

£ 

45.703,130 

31,891.728 
45,325,380 

— 

67,192 

3,628,612 

3,628,612 

Inorease. 

Decrease. 

38,831,646  NolcClroulaliou 

377,750 

56,1:5,288  Coin  and  Bullion 

59,078,(66 

58,768,118 

— 

310,558 

189  p.c.      Proportion 
5i  ,.          Bank  Rate 

19  7  p.c. 

19-6  p.c. 

— 

■I  p.c. 

5       .. 

5       „ 

— 

PUBLIC   INCOME  AND   EXPENDITURE. 

(For  7  days  ended  Jan.  12.) 


Reve-nue. 


Customs  i»579,ooo 

Excise 34^,000 

Estate,  &c.,  Duties  ..         ..       844,000 

Stamps 364,000 

Land  Tax  and  House  Duty  190,000 
Property  and  Income  Tax  12,636,000 
Excess  Profits  Tax  ..        ..    3,643,000 

Land  Values «        40,000 

Post  Office Coo,cco 

Crown  Lands — 

Sundry  Loans — 

Miscellaneous 126,286 

Bullion  advances  repaid    ..       loo.ooo 
ForTreasuryBillsfor Supply  64,088,000 
5%  Exchequer  Bonds,  1922. .         39,000 
t%  Exchequer  Bonds,  1920. .         48,000 
Nation-il  War  Bonds         .  .■*2P, 149,000 
War  Expenditure  Certificates       — 
War  Savings  Certificates.,    2,6oo,oco 
4%  War  Loan,  1929-1942  1 
5%  War  Loan,  1929-1947  j  *  * 
Other  Debts  created   under 
War  Loan  Act,  1915,  and 
Fin;ince  Act,  1916..         ..12,660,021 
Telegraph  Money  Act,  1913        — 
Under  Post  Office  RIy.  Act, 

1913 — 

Under  Military  Works  Act, 

1897-1003 — 

Under  Public  Buildings    ..        — 
Under  Housing  Act..         .,        — 
Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds  — 

China  Indemnity      ..         .,        — 
East     Africa    Loan     repay- 
ments. .         ..         . .         ,,  SiQ'jo 

Suez  Canal  Drawn  Shares. .        — 
Ways  and  Means  Advances         — 
Decrease      in      Exchequer 
balances       — 

jCio9,9'o,247 


Expenditure. 


National  Debt  Service 
Inter,  st,   &c.,  on  War  Debt 
Development  &  Road  Impvt 
Payments  to  Local  Taxation 
Other    Consolidated    Fund 

Charges       

Supply  Services 

iiliic 


3,342,934 

803,293 

36,522 

227,672 
34i095,432 
100,000 


Buirion  Advances     . . 
For   Advai  ce   for    Interest 
on  Exchequer  Bonds  un- 
der   Capital   Expenditure 
(Mcney)  Act,  1904  ..         . ,        — 
For  Treasury  Bills  ..         ..  47,704,000 
War  Loan  and  Exchequer 

Bonds  687,723 

Other  Debt  under  War  Loan 

Acts,  19:4-16  ..        ..       516.264 

For  Exchequer  Bonds  under 
Section  61  of  Finance  Act, 
1916,  and  Section  34,  1917        — 
Under   Telegraph    (Money) 

Act,  1913 — 

Under    Post    Office     (Lon- 
don) Railway  Act,  1913  ..        — 
Under  Military  Works  Acts        — 
Under  Housing  Act,  1914--        — 
Public    Buildings  Expendi- 
ture Act,  1903        . .         ..        — 
Old  Sinking  Fund,  1907-8..        — 
Sinking  Fund,  1914  . .         ..        — 
China  Indemnity      ,,         ..        — 
Cunard  Agreement  Act     ..         — 
Depreciation  Fund  ..         ..        — 
Suez  Canal  Drawn  Shares. .        — 
TtmporaryAdvances  Repaid  24,500,000 
Increase      in       Exchequer 
balances        ..*        ..         ..    1,289,339 


£109,960,247 


^Excluding  sales  through  banks  which  have  not  yet  been  brought  to  account. 

CURRENCY   NOTES. 

Return  of  Currency  Notes  for  the  week  ended  January  16,  1918. 


Issued. 

Cancelled. 

Outstanding. 

£1  notes         

los.  notes        

Note  certificates 
Previous  total 

£ 

3,110,211 

870,-,93 

300,000 

803,047,258 

3.578,933 

1.340,355 

450,000 

591.219.180 

£ 

I52.3'^4,225 

36,877,169 

21,500,000 
211,828.078 

807,327,863 

596,586.469 

210.741.394 

Ratio  of  gold    held  aijaJnst  notes,    this  week   15.06  p.c;  last  week  14.97  p.c, 

LONDON   BANKERS'   CLEARING. 


Date. 

I9'7. 

1916. 

Increase. 

Decrease. 

December 

1.439.206.000 

1 .204.438.0:0 

234.768,000 

£ 

Total 

19.121,196.000 

I5i275,o40.oco 

3.846.150.0:0 

- 

January  2 

::  .1 

.9.8. 
4co.652.coo 
455,056,000 
400,636,000 

1917. 
389,iil,coo 
376,702.000 
350.063.000 

11. 541. coo 
78  354,000 
50.573,000 

- 

Total 

1.254,344,000 

1.115.876,000 

140.468.000 

- 

NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES  (dollar  at  48.). 


Specie 
Deposits 
Lagal  Tenders 


Jan.  12,  1918.    Jan.  5, 1918 


iCo.  592.000 

3,432.000 

1(7,292.000 

15.558,000 


163,090,000 

3,672,000 

i6i, 514,000 

15, 428,430 


Dec.  29,  1917. 


£ 
164,770,000 

3.8J2.000 

167,9:6.000 
15,292,000 


Jan.  13, 1917. 


'5<i054,ooo 
1a.526.ooo 
161.376.000 

2,122.000 


FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  4s.). 

Dec.  14,  1917. 

Dec.  7,  J97. 

Dec.  >s,  >9><- 

Gold  coin  and  certificates     . . 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

100.568.000 
78,762.030 
10.300,000 

t 
100.131.200 
75.355600 

lO.'OO.OOO 

31.283.600 
3;,46«.20« 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

189.830.000 

I  6.t75,ft30 

3.542.0  0 

iSs.sS'j.Soo 

136,787.800 

3.4970  0 

86  75>,«oo 

54,634,800 

3c  3,600 

Toial  gold  reserves    . . 
Legal  tender  notes,  silver.  &c. 

350.047,600             320.27i,fx>o 
10.029.200               io.3**Q.Ho') 

141,715,200 
1.581,400 

Total  reserves  . . 
Bills  discounted— Members'. . 
Bills  bought  in  open  market 

340,070.800 
147,686,200 
50.8"5.6co 

336.661.400 

137.3eo.400 
38.116,400 

14j.296.A00 

7,549,600 

24.583,C03 

Total  bills  on  band     .. 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec.     . 
Municipal  warrants 
Loans  on  gold  coin  and  bullion 

193,571,800 

10,754,800 

9,609,200 

198,800 

175.516,800 

9  839,600 

10,084  800 

i8j.8o« 

32.133,200 
8  529,600 
2,233  400 

2,239,000 

Total  earning  assets  . . 
Due  fm  other  Fed  Resbnk— n. 
Uncollected  items 

214,134,600 
6,298,800 
63  931.200 

j95.624.000 

5.266,4CO 

62.114,400 

45.135.200 

9.517.200 

Total  dedctns.  fm  gross  dep. 
5%Red.FundagFed.ReB.bknls 
All  other  resources 

70,230,000 
107,400 
561,000 

67,380,800 
107.400 
593.600 

9.517,200 

84,000 

931,200 

Total  resources 

625.110,800      1      600.367.200 

198,9^4.  .00 

Capital  paid  in 

Gevernment  deposits  . . 
Due  to  merabrs-Res.  account 
Due  to  non-mbrs— clearing  ac. 
Members'  bank  deposits— nett 
Collection  items 

13,888.000 
25,857.000 
309.806,000 

39  353.400 
2.856.400 

i3,co9.6jo 

33,7'3.6oo 

287.434.800 

37.972,200 
3  1.7.200 

11,146  200 
5  752,i03 

128,627,200 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn- nett  llab. 
All  other  liab.  in  for  Govcidts 

377,872.800 

230.677,000 

1,600,000 

1,073.000 

362,237,600 

222,107,400 

l,6:o,coo 

612.400 

134.379,600 

53.275.2  0 
163.200 

Total  liabilities 

625.110.800      J      600.367.200 

198.964.-00 

Gold  res.  ag  nett  deposit  liab 

Gold  &  lawful  money  reserve 

against  nett  deposit  liabilities 

Gold  res  ag  F.R.  nts  in  act  circ 

61.7%                      63.1% 

65.0%                      66.6% 
60.8%                      63.f% 

695% 

71-7% 
103.2% 

NfiW   YORK  ASSOCIATED   BANKS   (dollar  at  4g.). 


Loans       

Reserve  held  in  own  Vaults . . 
Reserve  held  in  Fed.  Res.  Bk. 
Cash  in  own  Vaults     . . 
Reserve  held  in  Other  Depos. 
Nett  Demand  Deposits 
Nett  Time  Deposits    .. 

Circulation         

Excess  Lawful  Reserve 


Jan. 12.1918.  Jan.5.1918.   Dec.29.191;.  Jan. 13.1917. 


818.168,000 

4,074.000 

106.406,00c 

23,334,000 

1,790.000 

737,986,000 

39,582,000 

6,816,000 

13,852,000 


£ 

825.988.000 

3.990.00c 

104,616.000 

22,466,000 

1,776,000 

720,240,000 

38.566,000 

6.810,000 

14.324,000 


I  825,746,000 
J  4,038.000 
104,862.000 
21,846.000 
I  1,680.00c 
I  702.458.000 
,  38.548.000 
,  6,806,000 
1     16,846,000 


£ 

672,916.000 

102,906.000 

36.9og.000 

10,966.000 

684 .694 /wo 

32.308,000 

5,766.000 

32.524.000 


Lawf«l  Reserve  consists  of    ia%  of    the  Demand  Deposits  and  5%  ot    tb« 
Time  Deposits. 

BANK  OF  FRANCE   (25  Iranci  to  the  £).  


Gold  In  hand 
Silver  In  hand 
Bills  discounted 
Advances 
Note  oiroulatioo 
Public  deposits 
Private  deposits 
Foreign  Bills.  ■ 


Jan.  10,  1918. 


£ 

132.816.320 

9,844.360 

38,328.680 

48,807,240 

919,311,680 

6,260,560 

107,879,200 

191,963 


Jan. 


3,  '918. 

~£ 

•32,736,360 
9,873.120 
41,929,920 
48,825,160 
911,564,920 
13.464,160 
111,068,840 
123,760 


Dec.  27, 1917. 


132,576640 

9.906,280 

36.478,483 

48,476,960 

893.471,960 

,  10,074,360 

116,549,640 

251,920 


Jan.  II,  1917. 


136,237,160 

11,495,880 

27,829,960 

51,806,320 

684,203,56a 

1,371.920 

88,726.  !oo 

224,240 


Proportion  between  bullion  and  circulation  24.38  per  cent, against  24.58  por 
cent,  last  week.  Advances  to  the  State  £500,000,000,  unchanged.  Theadjoumeo 
payments  of  drafts  in  Paris  on  account  of  the  moratorium.  £20,153,120.  dccreaM 
£80,760.  and  at  the  branches  £25.240,160.  decrease  £33.120. 

IMPERIAL  BANK  OP  GERMANY  (20  marks  to  the  X). 


Jan.  7,1918.  Dec.  31,  1917.  Dec.  2a,  I9i7.|  Jan.  6,1917. 


Total  Coin  &  Bullion 

Treasury  Notes       . .  \ 

Bills  discounted       ..1 

Advances 

Note  circulation      ..| 

Deposits 


£ 

125.878.150 
66.951,650 
65S. 320.900 
334.650 
567.168.250 
341,520,750 


129,396,800 
65,239.500 
729,805.3  o 
255,550 
573,387,450 
402,514,450 


128,468,650 

57.840.550 

630.907.8  o 

315.550 
551,301,850 
331.752.500 


'  126,871.000 

i  i3,«7o.90» 

!  437,383,900 

j  448.S00 

I  39^294. -50 

1  188,453.500 


Clearing  House  return  during  December  £487,637,765,  against  £424,889,705 
in  November. 

BANK  OP  NORWAY. 


Gold 

Balance  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
Discounts  &  Loans. 
Notes  Id  Circulation 
Deposits  at  notice 


Dec.  31, 1917.  Deo.  ti,  1917 


igiCk 


4.844,000 

717.300 

22.388.000 

17.985.000 

12,179,000 


NETHERUNDS  BANK  (12  Florins  to  the  X). 


Jan.  5,  1918 


Gold  and  Silver 
Bills  and  Advances 
Note  circulation 
Deposits.. 


£ 

58,676.750 

■6.«49,J33 

74,825,000 

3.C03.416 


Dee.29,i9i7  Dec.22,t9i7  Jan.  6.  1917 


£ 

58.771.666 

16.442.250 

74.486.750 

4,469,333 


t 

J8.805.3J2 

14,143.500 

72,452.834 

4,1 291750 


«.773.5«} 
14.324.410 
6.:.8«5,83J 
5,4»».«5J. 


SWISS  NATIONAL  BANK  (25  francs  to  tfce  £)■ 


Gold  and  siWet 

Bills 

Note  oiroulatioo     . . 

Current  and  depost. 

aeoounts     . . .. 


Jan.  7,  1918. 


^£ 

16.433.c20 

13.ou;,g4« 

26.385.904 

5.779.560 


Dec.  31, 1917. 


£ 

16,378,976 
14^485,488 
28,092,108 

5.492.160 


Dec.  >4,  1917. 


16,345.072 
10.408.664 
25,541. :04 

3.782,408 


Jan.  6, 1917. 

15,9' 3.45* 
8,5i4,45« 
20,259.430 

S,679.;00      . 


January  19,  1918. 


XTbe  5nve6tot8'  IReview. 


65 


BANK    OF    SPAIN  (25  pesetas  (0  the  £). 


Geld        

Silver 

ForelED  Bills '. 

Discouois  aad  Sbort  Bills  .. 
Treasury  AoQounl,  &c. 
Notes  In  CIroulattoQ  .. 
Curreot   Aooounts,   Deposit: 
DIvldenits,  Interests,  &c.     .. 
GoverDtnenl  Seourities 


Jan.  5,  1918 


{. 

78,680,107 

28,294,329 

3,632,389 

29.520,743 

26,801,509 

112.543,176 

38,680,377 

2,582,760 

2,025,557 


I  I 

Dec.  29, 1917  Dec.  aa,  1917  Jan.  6, 1917. 


I 

78,673,630 

28,421,539 

3.575,663 

29,051,306 

26,801,704 

111,313,516 

38,046,135 

1,090,547 

2,854,481 


(. 

78,670,148 

28,589,309 

3,588,975 

29,199,801 

25,088,171 

110,216,963 

37.576,726 

956,048 

3,385.557 


(. 

50,468,518 

29.575.236 

3.578,394 

27,576.401 

28,666,801 

93,217,005 

30,196,954 

2,294,866 

2,079,861 


STATE  BANK  OP  RUSSIA  (10  roubles  to  the  £). 


Notes  In  reserve 
Gold      . . 
Gold  In  reserve  abroad 
Loans  and  Discounts. 

including  Ticasury 

Bonds 
Circulation  note  issue 
Deposits,      including 

Treiibury  deposits. . 


Oct.  39, 1917.    Oct.  JO,  1917.  Oct.  13, 1917. 


i 

15,780,000 
129,520,000 
230,860,000 

1,718,120,000 
1,836,310,000 


I 

10,310,000 

129,560,000 
230,860,000 


1,761,770,000 
'.785,890,000 

344.910,003 


Oct.  29,  1916. 


i 

11,600,000 
129,650,000 
230,860,000 


1,607,840,000 
1,729.010,000 


10,510,000 
155,880,000 
205,500,000 


600,350,000 
784,493,000 

22,373,000 


BANK   OF   ITALY   (25  lire  to  the  JE). 


Nov.  30,1917 


Total  cash 
Inland  Bills 
Foreign  Bills     ., 
Advances 

Government  securities 
Circulation 
Deposits  at  notice 
Current  accounts 


46,332,200 
33.507,760 
884,400 
23,505,720 
8,788,960 
253,520,080 
33,894,120 
18,024,760 


Nov.  so,  1917 


Nov.  10,1917  Nov.  30,1916 


i     ^ 

43.990.800 

32,650,720 

884,040 

24,584,160 

8,792,080 

249,420,640 

34,028,960 

i7,6io,3co 


i 

45.405.560 
28,H7i,5;o 
883,640 
23,656,720  i 
8,774.680  i 

239.434.880  ; 
34.130,160  [ 
'5.634.540  ' 


I 

42,741, 3C0 
19,431,160 
833,960 
7,841,800 
8.981.320 
150,096,360 
16,703,200 
t3.233.360 


BANK    OF    SWEDEN. 


Gold 

Balance   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt,  Securities  . . 
Discounts  and  Loans 
Notes  in  circulation 
Depostta  at  notice  . . 


Dec.  22,  1917. 


13,014,000 

6,973,000 

4,440,000 
16,146,000 
31,037,000 

IO,2S2,OO0 


Dec.  15, 1917.  Dec.  8,  1917.  Dec.  23,  1916 


12.831,000 
6,934,000 

4,440.000 
14,200,000 
29,564,000 

9,562,000 


12,591,000 
6,796,000 

6,381,000 
12,094,000 
29,321,000 

9,292,000 


146,000 

,454,  XK) 

525,000 

,008,000 
,133,000 
,731,000 


LONDON  COURSE  OP  EXCHANGE. 

Place. 

Usance. 

Jan.  15,  igi8. 

Jan.  17,  1918. 

Sellers. 

Buyers 

Sellers. 

Buyers. 

Amsterdam..     .. 

Pans      ..     \\     '.. 

Switzerland..     .. 

Petrograd     . .     . . 

Genoa,  Ac 

Spain      

Lisbon  and  Oporto 
Copenhagen..     .. 
Christiania  ..     . . 
Stockholm   .,     .. 

Cable  transfers 

Three  months'  bills  . .    , . 

Cable  transfers 

Three  months'  bills. ,    . . 

Cable  transfers 

Three  months' bills..    .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Three  months'  bills  . .     . . 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

10.95 

II. 10 

27.13 

27.50 

21.20 

21.55 

360 

39-95 

19.48 

57i 

29i 

•530 
14.62 

1408 

11.00 

11.20 

27.18 

27.60 

21.30 

21.65 

370 

40.15 

I9-5' 

58J 

3oi 

15.40 

14.72 

14.18 

10.83 
11.00 
27.07 
3745 
20.95 
31.30 
363 
3990 
19.62 

2=91 

15.15 
14.48 

13-93 

10.93 
11.10 
27. 1 J 
27.55 
21.10 
21.45 
,68 
4005 
19.72 

'^ 
15.25 
14.58 
14.03 

FOREIGN   RATES   OF   EXCHANGE   ON    LONDON. 


Paris,  cheques 
Amsterdam,  cheques 

Italy,  sight       .'. 
Madrid,  sight.. 
Lisbon,  sight . . 
Switzerland,  sight    ., 
Christiania,  si^ht 
Stockholm,  sight 
Copenhagen,  sight   . . 
Petrograd,  sight 
Alexandria,  sight 
Bombay,  T.T. 
Calcutta,  T.T. 
Hong  Kong,  T.T.     ., 
Shanghai,  T.T. 
Singapore,  T.T. 
Yokohama,  T.T. 
New  York,  cabUt 
Buenos  Aires,  T.T... 
Valparaiso,  90  days.. 
Montevideo,  T.T.     .. 
RJQ  de  Janeiro,  90  days 


Method  of 
Quoting. 


Francs  to  / 1 
Florins  to  £1 
Lire  to  £"1  . . 
Pesetas  to  £^1 
Pence  to  milreis  . 
Francs  to  £1 
Kroner  to  £i 
Kroner  to  Ji 
Kroner  to  £1 
Roubles  to  £ici     . 
Piastres  to  £i 
Sterling  to  rupee. 
Sterling  to  rupee. 
Sterling  to  dollar. 
Sterling  to  tael     . 
Sterling  to  dollar. 
Sterling  to  yen     . 
Dollars  to  £1 
Pence  to  dollar    , 
Pence  to  peso 
Pence  to  dollar 
Pence  to  milreis  . 


^   M 


25 .22^ 
12.107 
25.22J 
25.224 

53id. 

25. 22^ 

18.T59 
1B.I59 
18.159 

94-57 
974 

1/4 
1/4 


2;.58d. 

4.868 

47^8d. 

5^. 
i6d. 


Last 
Week. 


This 
Week. 


OPEN  MARKET  DISCOUNT. 


Thirty  and  sixty  day  remitted 
Three  months  ,, 

Pour  months  ,, 

Six  months  , 

Three  months  fine  inland  bills 
Pour  months 
Six  months 


Last  week.  This  week 
Percent.    Per  cent. 


BANK  AND  DEPOSIT  RATES. 


Last  week  This  week 
Per  cent.    Per  ceot. 
5 


B.iuk  of  Bngland  minimum  diseount  rate        ,.        ,.        ..  5 

M              .1         short  loan  rates             .,        ,,        ,,        ,,  —  ,,  _ 

Bankers'  rate  on  deposits ,,        ,,  34  ,,  34 

BMl  brokers' deposit  rate  (call)       ,.        3I  ,,  3I 

„           7  and  14  days'  notice           33  ,,  3I 

Current  rates  for  7  day  loans         ,, ,,  34— |  ,,  3*— i 

.,            forcall  loans             3—33  "    39 it 


The  Week's    Stock   Markets. 

Under  any  circumstances  it  would  require  a  great 
deal  of  encouragement  to  put  much  life  into  the  Stock 
markets  at  present.  Comparatively  few  things  except 
of  the  most  speculative  character  give  a  return  that  is, 
at  all  events  to  the  small  investor,  appreciably  higher 
than  can  be  obtained  from  War  Savings  Certificates 
and  other  War  Loans.  And  the  people  who  have  been 
in  the  habit  of  placing  most  of  their  spare  money  in 
foreign  securities  are  not  having  such  a  good  time  as 
to  attract  a  new  crowd  to  take  over  their  commitments 
except  at  a  ruinous  sacrifice.  Argentine  securities, 
for  instance,  might  have  been  regarded  as  among  the 
most  promising  in  the  present  world-welter,  because 
the  country  is  far  removed  from  the  war  area  and  pro- 
duces mainly  what  Europe  most  requires.  But  be- 
tween drought,  locusts,  Luxburgism,  and  industrial  in- 
sanity (the  two  latter  being  probably  co-related)  Argen- 
tine investments  have  suffered  as  much  as  our  own 
hopelessly  unfashionable  Home  Railway  market. 
Similarly  with  Russians.  Through  good  and  evil  re- 
port, Russia  has  always  honourably  paid  interest  on 
her  debts,  and  we  have  no  doubt  will  continue  to  do  so, 
although  there  may  be  temporary  lapses.  But  it  is 
unsettling  to  hear  of  the  de  facto  Government  threaten- 
ing to  repudiate  all  foreign  debts  whatsoever,  and  if 
timid  holders  are  frightened,  or  must  get  into  stocks 
that  yield  some  income,  the  heavy  fall  in  values  which 
has  taken  place  is  not  surprising.  In  anj'  case,  of 
course,  it  was  inevitable  that  our  Government  should 
take  responsibility  for  the  Russian  bills  issued  here, 
and  we  are  glad  that  a  timely  announcement  has  been 
made  on  the  subject.  Of  course,  the  coupons  which 
fell  due  recently  are  now  being  paid,  but  that  is  under 
arrangements  previously  made  with  the  financial 
agents  of  the  old  Government,  who  could  not  possibfy 
take  care  of  all  the  floating  liabilities  which  have  been 
incurred  in  the  past  three  years.  Russia  is  a  black 
cloud  on  the  horizon  at  present,  but  the  silver  lining 
will  appear  if  we  have  faith  and  patience. 


Business  on  the  Stock  Exchange  has  been  considerably  inter- 
rupted by  the  extremely  severe  weather,  which  has  stopped 
communication  with  the  provinces  to  an  extent  which  has  not 
been  experienced  for  a  long  time  past.  Both  the  telegraphic 
and  telephonic  services  were  at  some  periods  out  of  commission, 
and  the  mails  were  greatly  delayed.  At  the  same  time  the 
general  feeling  was  fairly  confident,  and  dealings  started  at  a 
fairly  average  level,  but  afterwards  dropped  back  to  a  much 
lower  point  than  the  '•  House"  appreciates.  Nothing  of  any 
importance  has  occurred  to  stimulate  markets,  and  the  compara- 
tive stagnation  which  has  been  in  evidence  during  the  past  few 
days  is  probably  the  result  of  the  beginning  of  active  income- 
tax  collections,  which  always  take  a  large  amount  away  from, 
the  dabbler  in  stocks  and  shares.  Consols  began  the  week  with 
a  show  of  considerable  strength,  but  afterwards  fell  back,  and 
Local  Loans  also  receded.  On  the  other  hand,  the  3%  per 
cent.  War  Loan,  India  3%  per  cent.,  and  Bank  stock  all 
received  a  fair  amount  of  support.  Colonial  stocks  began  well, 
and  most  of  the  leading  issues  gained  %  or  more,  but  after- 
wards the  whole  section  fell  into  neglect.  In  the  Foreign 
division  the  outstanding  feature  has  been  the  persistent  weak- 
ness in  Russian  securities,  which  have  fallen  day  by  day  points 
at  a  time  on  the  reported  determination  of  the  Bolshevik 
Government  to  repudiate  all  foreign  loans.  Japanese  issues 
showed  some  strength,  and  Cuban  Ports  and  Peruvian  Cor- 
poration preference  were  exceptionally  well  supported. 

Home  Railways  opened  firm,  but  there  was  extremely  little 
doing,  and  the  market  became  dull,  and  continued  weak  almost 
right  up  to  the  finish.  In  the  American  market  the  only  in- 
terest centred  in  International  Mercantile  Marine  preference, 
which,  after  gaining  3,  fell  back  sharply,  but  closed  above 
the  worst.  Canadian  Pacifies  and  Grand  Trunks  were  scarcely 
mentioned,  as  there  is  still  some  doubt  as  to  the  increase  of 
freights  which  seemed  to  be  definitely  promised  some  time  ago. 
Mexicans  have  been  in  better  favour,  and  prices  generally 
have  advanced.  Argentine  Rails  have  been  rather  irregular, 
because  it  is  not  yet  by  any  means  certain  that  the  labour 
difficulties  have  been  satisfactorily  settled.  We  know  that 
Buenos  Ayres  Great  Southern  has  had  a  strike,  and  the  effect 
is  evidenced  by  a  traffic  decrease  of  about  ;^io,ooo,  while  Central 
Argentine  secured  an  increase  of  ^^37,000,  and  Buenos  Ayres 
and  Pacific  was  marked  ,fi6,ooo  up.  Movements,  however,  are 
at   the  present  moment  of  practically  no  significance. 

Apart  from  an  exceptional  increase  of  3  points  in  Hongkong 
and  Shanghai,  nothing  much  has  occurred  among  Bank  shares, 
but  the  general  tendency  has  been  good.  Brewery  shares  have 
continued  to  receive  support,  and  AUsopps,  City  of  London, 
and   Watney   deferred    were   all   conspicuous    at    one   time   or 


66 


XTbe  Jnvestors'  TRevtew. 


Januarv  19,   1918. 


Consols... 
'Wu  Losn   3; 

M  41 


India  3%  . 

„     34% 

-  Australian  5}%,  1920-22  , 

Canada  4%,  1940-& 

..       44%,  >9»o-5 

N.S.W.  4%,  1933 

Argentine  4%,  1900 

BerKian3% 

Brazil,  1913 

^..     5%,  igu  

Chinese  1896  

1.      1912  

Bgypt  Unified  4% 

•Caledonian  defd 

■Gt.  Central  pia 

J,        „        dfd 

r-Gt.  Eastern 

'Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorlcs 

London  Brighton  defd. 
London  Chatham  ord.. . 


Week 


■Canadian  Pacific  

M,.  Indian  Guar.  4i  %  debs. 
Grand  Trunk  ord.    

Do.  ist  pf 

Do.  3rd  pf 

Antofagasta  dfd 

Srasil  Common 

B.A.  &  Pacific 

B.  A.  Gt.  Southern 

e.  A.  Western    

Anglo-South  American   . . 

Bank  of  Australasia 

.Bankof  N.S.  Wales 

Barclay  &Co."A" 

Do.       "B" 

Capital  &  Counties  

Chartered  of  India    

Hongkong  &  Shanghai    . . 

Lloyds  

London  &  Provincial  .... 

London  &  Brazilian 

Armstrong,  Whit  worth  . . 
'Birmingham   Small  Arms 

Xammelt-Laird 

Car^o  Fleet 

Dorman,  Long   

Associated  Cement  . 

'Borax  dfd 

iBovrll    

Brazil  Traction  ..... 
^British  Amer.  Tobacco  pf. 
British  Aluminium  .... 
British  Oil  &  Cake    .... 

Brunner,  Mond 

Castner-Kellner 

Coats 

Courtaulds 

-Cunard 

Dennis  Bros 

£astern  Telegraph   ... 

.  Kastfflans 

English  Sewing  Cotton 

.Anglo-Egyptian  "B"  .. 
"Baku  (los.) 

Burmah 

Lobitos 

Maikop  Pipeline  

;Mezican  Eagle  pf 

.AUagarj/- I  3/4 

Anglo-Java  Rub.  2/-     ....  7/3 

Anglo-Malay  2/ 14/7^ 

Ayer  Kuning  £1 52/6 

Batang  Malaka  2/- 5/ 

Bekoh2/- 4/;J 

Brit.  N.  Borneo  Trust  £1  16/ 

BukitCloh2/- 5/ij 


N.S.W.  4j%5rrbds 

.,      4*%, '9«»-7 

„       5%.  «92>-3 

5i%.  "giM    •  •  • 
New  Zealand  4%,  1929    . 

Queensland  4% 

„  41%.  >920-5    • 

Union  of  S.  Africa  4i% 

i9«o-5    

Victoria  4l%.  1920-5 

Westn.  Aus.  4%    

French  War  Loan,  5%  . . 
Japan  4J%  (ist),  1905   .... 

5%  '907 

Mexican  ;%,  i399   

Rassia  4  % 

„      4i%.  1909 

..      J%,  1906 

London  and  N.-W 

London  and  S.-W.  dfd.  .. 
Do     red.  pf.  1914 

Metropolitan 

Do.       5%      pf--.- 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastern 

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern  


Last 
We«k 


98 
90 
95 


463 
iS/6 


27/6 

28/g 

2'JS 

1/9 

2} 

1/ 

3, 

63/6X 

63/6 

Bukit  Kajang^ 
.Bukit  Mertajam  2/-  ... 
Bukit  Sembawang  2/-  . 

Carey  United  £1   

'  Ceylon  Para  2/- ....   .. 

Chersonese 

Chevi  t  2/-   

Dalkeith  2/- 

Eastern  Invest.  Trust  £1.. 
■  Grand  Central  f  I 

Gula  Kalumpong  £1 

Highlands  £1 

.  Java  Investment  £i 

Java  Para  ^ I  

-Johore  Rubber  Lands  £i.. 

Kamunin.:  2/- 

Kinta  Kellas2/-  

Kuala  Kubu  2/-  

Labui/- 

Langen  Java  £t 

Linggi2/- 

London  Asiatic  2/- 

Malacca  £1 

Malayalam  £1 

Merlimau  2/-   

Padang  Jawa  2/- 

•  Pataling  J/- 


Abbontiakoon  (lo/-) 

'Bechuanaland  Exp.  - . . . . 

Brakpan  

Broken  Hill  Prop.  (8/-)   . 

Cam  &  Motor 

Central  Mining  (£ii)  ... 

Chartered    

City  Deep      

Cons.  Gold  Fields   

Cons.  Langlaagta 

Crown  Mines  (10/-)  ..... 

De  Beers  dfd.  (£2  los.) 

East  Rand  

>Ceduld 

Oov.  Areas  Mo<^     


75/x 
4/9 

3/6 
46/x 

10/ 

3/7 
6/3 
3/1 
»7/3 
27/loJ 
35/3 
61 /x 

31/ 

32/6 

35/ 

4/4 

4/7 

3/3 

10/3 

45/ 

28/9X 

41/6 

5/8 

3/7i 

46/ 

4/li 
7/3 

se 

55/3 
10/9 
6i 


3/4 

7/3 

14 '3 

5", 
4/10J 

4/7J 

16/ 

S/iJ 

76/ 

4/9 

3/6J 

46/ 

10/ 

3/6 

6/6 

S7/3 

28/ 

35/3 

6:/ 

31/ 

32/6 

35/6 

*i 
4/6 

3/3 
10/ 
45/ 
28/3 
8/loi 

5i 
41/6 

5/8 

3/9 
44/6X 

4/li 
7/6 
Si 

57/ 
ii'3 

eft" 

't'i 
35/3 
20/b 


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San   Paulo  (Brazilian)... 

United  of  Havana 

London  &  S.W 

London  City  St  Midland. 
London  County  &  West/.. 

London  Joint  Stock 

Nat.  Prov.  ot  Eng.(£ioJ  pd) 
Do.  (£12  pd) 

Parr's    

Standard  of  S.  A 

Union  Discount 

Union  &Smiths 

Kynochs  

Mond  Nickel  ord 

South  Durham  Steel  .... 

Thornycro't    

Vickers 

Pine  Cotton  Spinners  .... 

Forestal  Land 

Furness,  Withy 

HarroJs  Stores 

Hudson's  Bay    

Imperial  Tobacco  '  C  '  pf 

Lever  Bros.  "  C  "  pf 

Lyons,  J, 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  &F 

P.  SO.  dfd 

Royal  Mail 

Underground  Inc.  Bds. .. 

North  Caucasian 

Roumanian  Cons 

Royal  Dutch  (100  gulden) 

Shell 

Spies  (10/-) 

Ural  Caspian 

:  Perak  2/-    

Port  Dickson  2/-    

Rub.  Estates  Johore  £1.. 

Rub.  Estates  Krian  2/- 

Rubber  Trust  £1 

Sampang  (Java)  2/- 

Sapumalkande  £1    

Seaport  £t 

Selangor 

Sengat  2/- 

I  Seremban  £1 

;Shelford£i 

Sialang  £1    

Singapore  Para  2/-    

Singapore  United  2/-    .  • . . 

Soember  Ajoe  2/- 

Stagbrook  £\ 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  £1   

Sungei  Kapar  2/-    

Sungei  Kruit  £1 

Taiping  2/-  

Tall  Ayer  £1  

Tandjong  £1  

Tandjong  Malim  £1 

Tebrau  £t  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdang2/- 

United  Sumatra  2/- 

ValdOr  2/- 

Vallambrosa  2/- 

Way  Halim  1/8  pd 


Gt.  Boulder  (a/-)    .... 

Kyshtim    

Mashonaland  Agency 

Meyer  &  Charlton    .. 

Modder  "B" 

Do.     Deep 

Mysore 

R.>nd  Mines  (s/-)   .... 

Rio  Tinto  (£5)  

Russo- Asi  itic 

Spring  Mines 

'  Tanganyika 

I  Tanalyk    

I  Van  Ryn  Deep  ...... 


91 

9>i 

79 

79i 
98 

9' 
59 

4^ 
57 

III 

94 

»3j 

77 

;h 

>4 

56 
31 
26 


Wmk 

90 
95 

%i 

8oi 
93 

91 

93 
79 
79I 
99 

60 

4li 

42 

5>i 

9»J 

Hi 

ni 

77 


'3i 

30 

96 


another,  but  in  one  or  two  cases  prices  gave  way  towards  th« 
finish.  Egyptian  securities  have  been  in  good  demand,  and  all 
the  leading  shares  are  higher.  Iron  and  Steel  shares  as  a 
rule  have  received  a  generous  amount  of  support,  but  the  only 
conspicuous  changes  are  a  sharp  advance  in  Otis  Steel,  and 
an  equally  heavy  decline  in  Canadian  Car  and  Foundry.  Land 
.shares  have  been  steady,  but  nothing  particular  has  happened, 
exceipt  that  Hudson's  Bays  have  advanced  a  good  fraction,  and 
Nitrate  shares  also  have  been  in  better  demand  than  for  some 
time  past.  Shipping  shares,  under  the  lead  of  P.  and  O.  de- 
ferred, showed  considerable  strength,  but  later  »he  tendency  was 
distinctly  dull,  and  Indo-China  fell  a  point.  Textile  shares  have 
shown  strength,  with  Coats,  Fine  Spinners,  and  Courtaulds 
all  gaining  ground  almost  daily.  Among  Miscellaneous  Indus- 
trials, Cements  have  been  particularly  prominent,  and  Borax 
Consolidated,  British  American  Tobacco,  Liptons,  and  a  few 
others   have  also  been    in  demand. 

Oil  shares  generally  have  been  weak,  with  Russian  concerns 
almost  at  nominal  values.  The  only  point  of  interest  was  the 
conclusion  of  the  deal  between  the  "  Shell  "  Co.  and  Venezuelan 
Concessions,  but  the  latter  has  already  had  most  of  its  legiti- 
mate advance,  and  the  news  had  little  effect.  Rubber  shares 
have  been  much  quieter  than  for  some  time  past,  but  a  little 
sensation  was  caused  by  an  unexplained  advance  in  United 
Malaysian  from  6d.  to  3s.  Of  course,  these  flutters  are  inevit- 
able from  time  to  time,  but  they  require  close  watching.  The 
higher-priced  Rubbers  seem  to  have  been  most  attractive,  and 
they  are  probably  the  best  worth  following. 


LONDON    PRODUCE   MARKETS. 


Sugar. — Market  remained  unchanged. 

Coffee  generally  quiet,  but  prices  steady  for  all  desirable 
qualities.  At  public  sale,  good  to  fine  bold  sizes  of  Costa  Rica 
sold,  114s.  6d.  to  117s.  6d.  ;  ditto,  Nairobi,  98s.  to  logs. ;  Santos, 
quay  terms,  72s.  6d.  The  market  for  future  delivery  remained  in 
a  dull  and  featureless  condition. 

Cocoa  dull,  and  the  small  supply  offered  at  public  sale  was 
mainly  bought  in.  Some  Guayaquil-Ariba  sold,  112s.  ;  good  St. 
Lucia,  87s. ;  West  Coast  African.  70s. 

Spice. — Pepper  market  remained  steady,  but  buyers  were  again 
reserved.  Singapore  black,  basis  fair,  spot,  sold,  is.  2jd.  ;  Telli- 
cherry,  is.  4d.  ;  and  Muntok,  is.  7jd.  Cloves  dull.  Fair  Zanzi- 
bar, spot,  s  Id,  IS.  gd.  Demand  for  tapioca  keeps  slow.  Fair 
flake,  spot,  7d. ;  fair  Penang  seed  pearl,  67s.  6d. ;  and  medium, 
65s. 

Rice. — There  is  a  sustained  demand,  and  ofiers  are  sparingly 
made.  A  good  inquiry  is  still  in  force  with  regard  to  beans  and 
peas 

Shellac — Only  limited  spot  sales  were  transacted  on  the  basis 
of  365s.  for  fair  free  second  orange.  Forward  positions  were  very 
unsettled.  T.N.  March  and  also  May  sold  360s.  to  350s.  and  365s., 
closing  at  370s. 

Rubber  quiet  and  easier,  but  steadier  since,  with  a  fair  demand. 
Plantation,  spot  standard  crepe,  sold,  2s.  jd.  to  2S.  4jd. ;  April- 
June,  2S.  6d.  to  2s.  5jd.  :  July-December,  2S.  61d.  Ribbed  smoked 
sheet,  spat,  done,  2s.  4^d.  to  2s.  4d.  Fine  hard  Para,  spot,  sellers, 
2S.  8d. ;  soft  fine,  2S.  4d.  ;  ball,  is.  7d. 

Corn  (Mark  Lane), — There  was  no  fresh  feature  to  report  this 
week,  the  tone  being  firm  for  all  cereals,  and  offerings  cleared  to  a 
good  demand  at  full  rates.  Quotations  : — Wheat  ;  English  whites 
and  reds,  74s.  6d.  per  qr.  (504  lbs.).  Of  imported  grades.  No.  i 
Northern  Manitoba,  8is.  6d.  to  82s.  3d.;  No.  2,  80s.  to  80s.  gd  ; 
Australian,  83s.  6d.  to  84s  3d.  ;  and  Plate,  8is.  6d.  to  82s.,  all 
landed  per  496  lbs.  Flour  maintained.  English,  town  and 
country  (G.R.),  quoted  44s.  3d  per  sack,  ex  miil ;  and  Canadian 
export,  51s.  gd.,  ex  warehouse  per  280  lbs.  Barley  :  English  milling, 
62s.  gd.  ;  and  Californian,  93s.  per  448  lbs.,  landed.  Oats: 
English,  45s.  3d  per  336  lbs.  ;  and  American  white  clipped,  6is.  to 
62s.,  landed,  per  320  lbs.  Maize  continues  nominal  owing  to 
paucity  of  available  supplies. 

Cotton  (from  our  Manchester  correspondent). — The  market 
has  been  dull  throughout  the  week,  and  it  is  impossible  to 
record  any  improvement  in  the  amount  of  business  passing. 
Owing  to  producers  having  plenty  of  work  to  go  on  with,  there 
is  a  good  deal  of  indifference  as  to  the  recent  quiet  state  of 
affairs ;  but  unless  more  orders  come  round  before  very  long, 
weak  places  will  begin  to  show  themselves.  Mixed  reports 
have  been  received  relating  to  the  raw  cotton  situation,  and 
there  is  a  fear  in  many  directions  of  a  slump  in  values,  although 
there  are  few  indications  at  the  moment  of  any  such  thing 
taking  place.  It  is  said  that  certain  firms  are  not  carrying  out 
the  regulations  of  the  Control  Board  with  regard  to  the  restric- 
tion of  output  very  accurately,  and  the  Board  has  issued  a 
warning  that  prosecutions  will  take  place  if  defaulters  are 
found.  The  Board  of  Trade  returns  for  the  past  year  show 
Ihat  in  values  our  shipments  of  yarn  and  cloth  created  a  record  ; 
the  total  exports  amount  to  nearly  /' 130,000,000.  The  cloth 
markets  through  the  week  have  been  fe.itureless.  Reports  from 
India  and  China  have  not  been  at  all  encouraging,  and  fresh 
Iwsiness  has  been  at  a  very  low  ebb.  A  sortingup  trade  has 
been  put  through  for  certain  minor  outlets,  without  the  turn- 
over being  at  all  important.  Some  necessary  buying  has 
transpired  in  home-trade  fabrics,  and  also  in  goods  suitable 
for  our  CTOvernment  and  the  French  Government.  Most  manu- 
facturers continue  very  busy,  and  there  is  no  running  after 
fresh  orders.     American  yarns  have  been  firm  in  quotation,  but 


January  19,   1918. 


XLbc  3nvcQtoxQ'  l^evlew. 


67 


many  spinners  have  not  been  thoroughly  tested.  There  is 
evidence  of  re-sales  taking  place,  which,  i£  continued,  may 
have  some  effect  upon  the  level  of  prices.     Business  on  ordinary 


CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK  ENDING    JANUARY  i8.  1918. 

Last            This 

Last 

This 

" 

Week.          Week. 

Week. 

Week. 

Sugar— per    cwt. 

f   s.    d. 

£    s.  d. 

Wool— per  lb. 

£    -.  d 

f  9.  fl. 

duty    14/,    98^ 

A  u  8  t  r  a  1 1  a  n 

polarisation 

Scoured  Merint 

nom. 

nom. 

Tate's  Cubes 

a  13   9 

2  13    9 

Scoured  Cr'ssbr'* 

nom. 

nom. 

Crushed 

2  13    9 

2  13    9 

Greasy  Merino   . . 

nom. 

nom. 

Granulated  ..     . 

269 

269 

Greasy  Crossbrei 

nom. 

nom. 

Lyie's  |;ranutated 

2    6    9 

269 

New    Zealand 

Foreign,       grami 
rtted,  first  marks 

(scoured)  Merino 

nom. 

nom 

Greasy  Crossbred 

nom. 

nom. 

f.o.b.,  spot 

nom. 

nom. 

Cape  snow  white 

nom. 

nom. 

GermaiiCubef.o.b 

nom. 

nom. 

" 

French  Cube 

Indiarubberp.lb 

prompt 
Crystallised,  West 

nom. 

nom. 

Plantation,      Spot 

Crepe 

024; 

0    2    4i 

India 

269 

269 

Beet,    88%    f.o.b 

nom. 

nom. 

Goal — per  ton 

Durham,  best     .- 

nom. 

nom. 

Tea— per  Ib.,dnt) 
l<idian  Pekoe      . 

r.i.   s.   C. 

s.  d.  s  t^ 

Seconds        ..     .. 
East  Hartlepool. 

nom. 
nom. 

nom. 
nom. 

nom. 

nom. 

Seconds  ,    ..     . 

nom. 

nom 

Broken    ,, 

nom. 

ncm. 

Steams,  best 

326 

32    6 

Orange    ., 

nom. 

nom. 

Seconds 

29  6 

29    6 

Broken    ,, 

nom. 

nom. 

Pekoe    Ssuohong 

nom. 

nom. 

Lead— pertoD. 

r   s.  d. 

I     s.  d 

Ceylon  Pekoe 

nom. 

nom. 

English  Pig..     . 

"nom. 

nom. 

Broken    ,, 

nom. 

nom. 

Foreign  solt..     . 

r29i-;C28i 

£^9lt-£'Si 

Orange    ,, 
Broken    „ 

nom. 
nom. 

nom. 
n  ni . 

QuIckslWer— per 

Pekoe  Souchong 

nom. 

nom. 

bottle  hrsthaod 

nom. 

nom. 

OoGoa  —per  cwt. 

duty  6d.  per  lb. 

Trinidad — percwi 

d.  s   d 
87  0-  99  . 

85    D-    98   0 

s.  d.  .    d. 
87  0  -99  0 
35  0  -98  0 

Tin — per  ton 
English  Ingots 
Do.    bars 

£300 
£301 

r297-300 
£298-301 

West  Africa!!     '.'. 
Ceylon  Plantaiioi. 

68  0-  77  0 

68  0  -77  a 

Standard  cash    . 

£^95 

fsgsJ 

77  0-  94  0 
105/-109/ 

77  0    940 

Tin  Plates, per  bo' 

nom. 

nom. 

Gjayaqull  Ariba, 

II0/-112/ 

Copper- per  ton. 

Oofr«6 — per    cwi. 

English,    Tough 

duty  4j/.  per  cwt. 
iast  India    ., 

97  0  Ii6  0 

97  0  I i  6  0 

per  ton      ..    . 
Best  Selected    . 

nom. 

nom. 
f>l9-jfi23 

Jamaica. ,     ..     ,' 

77  0-120  0 

77  0-i20  c 

Slieets 

£H7 

£■47 

"osla  Rica  ..     . . 

97  0  116  0 

97  0  iiS  0 

Standard      ..     . 

£iiO'ijol 

£iio-iioj 

Provltlona— 

Jute— per  ton. 

Butter,  per  cw! 

Native   firsts    for 

Australian  finest 

252/ 

252/ 

shipment 

nom. 

nom. 

Argentine     , .     . . 
Insti  Creameries 

252/ 
nom. 

25W 

nom. 

01l»— 

Linseed,  per  ton.,. 

^58-^63 

£i8-C63 

Dutch  ditio..     . 

nom. 

nom. 

Rape,  refined  . .  .i 

f.71 

Cy- 

Russian  Bnest    . 

nom. 

nom. 

,,       crude   — 

£66 

£66 

Paris  baskets      . . 

nom 

noni. 

Coit'n  Seed.cruw 

£eo 

£60 

Danish  finest      . . 

nom 

nom. 

Ditto,  refined 

£('7-£95 

£67-£95 

Brittany     rolls  - 

Petroleum  Oil,i>e 

doi. lb.      .. 

nom. 

nom 

8  lbs. 

i/7i 

'l7h 

' 

Water  White      . 

i/8i 

mh 

BaooD — per  cwt. 

Oil  Seeds, Li nsee> 

— 

Irish  ..  ..  :. 

'7^1 

172/ 
171;-, 72/ 

I7I/-I72/ 

Calcutta — pet  ton 

Continental..     . 

172/ 

Spot 

29  15    0 

29  15     0 

Canadian     . .    . 

172/ 

Rape     

i2g'io£so 

£29-lO)C30 

American     . .     . . 

172/-180 

I72/-Ii;'0/ 

name — per  cwt. 
Irish       ..     ..     .. 

203/ 

2C3/ 

Iron— pet  ton 

Cleveland  Cash  . . 

no  111 

nom. 

Canadian     ..    .. 

162/- 165/ 

;62/-i65/ 

Tobacco  —  dut) 

American     ,.    . 

125/-165/ 

125/- 165/ 

unmanufacture- 

Ohtua— percwi. 

Dutch 

Canadian    . .     . 

1 29/6- 160/- 
nom. 

129/6-160/- 
nom. 

7/4  to  8/0   per  lb. 
Maryland  &  Oliic . 

per  lb.  b;  nd    . 
Virginialeal. 
Kentucky  leal    . 
Latakia  .  •     . . 

nom. 
08-21 

nom. 
0  8—2    I 

English  Cheddar 
iViltsloaf    ..     . 

142/ 
nom. 

■42/ 
nom. 

07-011 
2  '»  "5    0 

0  7-0  II 
2  0—5    0 

New  Zealand      . 

nom. 

noir.. 

Havana 

1666 

16-66 

Rice— per  cwt. 

Japan     

Rangoon  2  stars  . . 

'.    d. 
nom. 
26    3 

3.     <l 

ncm. 
26    3 

Manila 

Cigars,   duty   lo/i. 
per  lb. 

nom. 

2/  upds. 

nom. 
2/  upds. 

S<g«— per  no, 

English 

Irish 

Timber— Wood. 

Pitch  fine    ..     .. 

300/—  40c. 
380/—  70f. 

300;— 40,1; 

43  0-45  0 

44  0  45  0 

Indian  Teak 

380;- 7  JO/ 

Danish 

40  0-4 1   0 
nom 

40  C-41  0 
nom. 

Turpentine- 

Spelter— 

American  Spot  , . 

124/ 

1217/ 

G.O.B.  as  to  posi- 
tion      

:C54-£5o 

f54-£50 

Copra— per  ton 

Malabar        . .     . 

46  0  0 

i6    0     0 

Flour— per  sack. 

Cey  on 

46  0  0  46  0  0 

Country  Straight 

F.M.S,  Singapore 

45  ;o    0 

45  t5     0 

Runs  ex  Mill.. 

44/3 

44/j 

F.M.    Straits 

45  'o    0 

45  10    0 

lines  has  been  of  limited  dimensions.  Some  small  lots  have 
been  put  through  in  fine  counts  for  India.  Bolton  spinnings 
have  moved  off  slowly  at  late  rates. 


The    Russian    Kaleidoscope. 

Are  the  Germans  behind  this  movement  to  repudiate 
the  public  debts  of  the  submerged  Romanoff  Empire? 
IVobably  enough  they  may  be.  Certainly  the  hard, 
purely  materialistic  revolutionary  social  creed  of  that 
able  and  tortuous  minded  German  Semite,  Karl  Marx, 
seems  to  govern  the  aims  of  the  Bolsheviks,  who  at 
present  are,  .so  far  as  we  can  di.scern,  masters  of 
Russia's  fate.  It  seems  equally  certain  that  the  decree 
to  repudiate  the  public  obligations  of  the  State  would 
be  regarded  as  astute  jxilicy  by  the  Pan-CIerman  mind. 
*'  Cease  to  pay  interest  on  the  Russian  debt,  and   the 


Allies  will  be  crippled  in  their  tinancial  resources,"  they 
would  argue. 

"  But  how  about  the  German  resources?  " 

"Oh,  they  will  be  looked  after,  and  even  if  for  a 
time  our  German  banks  and  capitalists  suffer  in  pocket 
through  Russia's  default,  we  shall  have  ample  com- 
pensation in  the  new  territories  annexed.  VVhy,  the 
minerals  in  Poland  alone,  added  to  those  we  take  from 
Belgium  and  France,  will  make  us  supreme  for  ever." 

Doubtless  it  is  also  hoped,  and  may  even  be  already 
planned,  that  the  humble-minded  Russian  will  as.sent  to 
proposals  whose  effect  would  be  to  secure  Germany's 
financial  claims  while  repudiating  al]  others.  Some- 
thing of  that  sort  looks  quite  likely  to  represent  an  out- 
line at  least  of  the  motives  animating  the  German 
intriguers  now  pervading -Russian  life  as  dry  rot 
pervades  damp  and  airless  flooring,  that  and  the  hope 
so  to  discredit  Russia  as  to  prevent  her  from  obtain- 
ing help  from  any  source  should  she  attempt  to  throw 
oft  the  shackles  now  being  bound  upon  her. 

"Are  we  therefore  to  despair  of  Russia's  resur- 
rection, and  give  up  all  hojx;  of  seeing  better  influences 
coming  to  prevail?  " 

No,  surely  it  would  be  a  mistake  altogether  to 
despair  even  at  the  blackest  hour  because  the  more 
fully  Marxism,  with  all  its  ruthless  animosity 
towards  capital,  is  allowed  free  play  in  its  effort 
to  build  up  an  ordered  and  just  civilisation  on  altogether 
new  foundations,  the  more  conspicuous  will  probably 
be  the  failure.  And  out  of  the  failure  of  Lenin  and  his 
as.soclates  may  come  Russia's  salvation. 

Sir  George  Buchanan,  the  British  Ambassador  in 
Petrograd,  nevertheless,  did  wisely  in  trying,  when 
passing  through  Stockholm,  to  disabuse  minds  in  this 
country  about  the  standing  and  present  hold  of  the 
Bolsheviks  over  at  least  northern  Russia.  They  are 
strong  enough  for  the  present  to  be  able  to  have  their 
own  way.  For  how  long  they  may  remain  no  one,, 
least  of  all  they  them.selves,  can  say,   but  meanwhile, 


New  Zealand. 


A  Wealthy  Cotintry,  Splendid  Climate,  Fertile 
Soil,  Plenty  of   Water. 

An  Ideal  Country  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  population,  has  an 
annual  export  of  raw  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IRON.  TIMBER, 
GUM,  GOLD  AND  SILVER.  Total  yield  of  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  have  been  advanced 
by  Government  to  Farmers  and  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 

The  Railways,  3,000  miles.  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State. 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  new 
country.  New  Zealand  offers  solid  advantages. 
Excellent  Steamship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Shipping  Company, 
Limited,  and  the  Federal  and  Shire  Lines. 


Full  information  is  supplied  fiee  by 

THE  HIGH  COMMISSIONER  FOR  NEW  ZEALAND. 

413-416,  STRANP,  W.C.  2. 


68 


Zbc  JnvestOM'  "Kevlew. 


January  19,   1918. 


under  their  anarchic  domination,  Russia  is  splitting  into 
fragments.  Any  section  of  the  country  which  raises 
clamour  about  becoming  a  State  apart,  free  and  inde- 
pendent, is  allowed  to  go  its  own  way.  Sub-division 
renders  easier  the  infamy  contemplated  in  the  repudia- 
tion of  the  debt. 

But  in  proportion  to  the  thoroughness  of  the  immedi- 
ate success  in  these  directions  will  be  the  reaction  and 
the  punishment.  Even  if  no  civil  war — and  we  hope 
there  will  be  none  of  magnitude — leads  to  the  emer- 
gence of  some  commander  powerful  enough  and  saga- 
cious enough  to  lay  his  hand  upon  the  elements  of  dis- 
order and  bring  the  country  anew  into  obedience  to  law 
and  public  right,  the  various  "  free  states  "  into  which 
the  country  is  being  divided  up  will  soon  find  it  im- 
possible to  live  side  by  side  devoid  of  all  credit,  public 
or  private ;  with  no  means  of  transacting  business  the 
one  with  the  other ;  with  a  currency  that  is  worth 
nothing  ;  with  all  banks  shut  or  crippled  because  ex- 
change facilities  are  completely  denied  them ;  with  no 
markets  outside  to  which  they  can  sell,  because  anarchy 
has  destroyed  the  capacity  to  produce ;  and,  as  one 
promise  after  another  made  by  the  enthusiasts  is  falsi- 
fied, as  living  becomes  harder  instead  of  more  facile, 
the  discontent  will  grow  to  such  proportions  as  must 
undermine  the  sway  of  the  idealists  and  bring  the 
Russian  people  to  its  senses.  In  the  meantime,  the  all- 
grabbing  Prussian  seems  not  unlikely  to  be  foiled  by 
the  very  completeness  of  his  temporary  success. 

From  German  sources  it  was  reported  in  the  middle 
of  the  week  that  "  conferences  "  had  been  resumed 
between  the  Leninites  and  the  German  emissaries. 
The  news  also  came  that  Lenin  himself  had  been  shot 
at,  but,  if  true,  that  may  have  been  merely  a  demonstra- 
tion to  try  and  galvanise  his  waning  popularity.  In 
fact,  everything  about  the  present  aspect  of  Russian 
affairs,  so  far  as  they  are  allowed  to  be  visible  to  the 
world  outside,  appears  to  us  to  indicate  that  behind  the 
parade  of  antagonism  between  Russian  anarchists 
and  Prussian  thieves,  there  must  be  a  more  or  less 
well-organised  mass  of  men  drawn  from  the  ranks  of 
the  dispossessed  Prussianised  bureaucracy  of  the  old 
Empire.  Just  look  at  the  way  in  which  Lenin  is 
acting  towards  Rumania.  Could  any  Prussian  bully 
of  them  all,  Hindenburg  himself,  act  with  greater  arro- 
gance towards  a  country  deemed  weak  than  Lenin 
is  doing  toward  Rumania?  He  arbitrarily  arrested  and 
flung  into  prison  the  Rumanian  representative  in  Petro- 
grad,  with  several  of  his  staff,  and  when  remonstrated 
with  released  his  victims,  in  anything  but  an  apolo- 
getic mood.  He  proceeded  to. utter  threats  of  instant 
war  against  Rumania  unless  its  Government  sub- 
mitted and  obeyed  his  behests  within  24  hours. 
William  Hohenzoliern  himself  could  not  have  shown 
greater  insolence,  and  it  may  well  be  that  the  whole 
Brest-Litovsk  babblement  is  merely  a  sort  of  foxy  farce 
got  up  to  befool  the  world  by  the  Germans  and  Ger- 
manised Russian  bureaucrats  acting  in  secret  concert. 
From  that  point  of  view,  for  which  there  is  much  to 
be  said,  true  Russians  of  all  classes  deserve  our  sym- 
pathy. At  the  same  time,  as  Mr.  Balfour  intimated, 
it  is  prudent  that  we  should  maintain  informal  relations 
with  the  extremists  who  are  now  playing  havoc  with  a 
defenceless  land. 

[The  latest  report  is  that  Lenin  has  "ordered"  the 
King  of  Rumania  to  l>e  arrested  and  sent  to  Petrograd.] 


American  Business  Notes. 


From  New  York  we  are  told  by  the  American  corre- 
spondents of  our  newspapers  that  the  Chamber  of 
Commerce  in  that  city  have  started  a  movement  on  a 
national  scale  aiming  at  the  establishment  of  a  world- 
wide boycott  of  Germany,  if  after  the  war  that  country 
retain  its  present  form  of  Government.  The  object, 
as  explained  by  the  Chamber,  is  "not  a  boycott  of 
revenge  or  punishment,  but  is  based  upwn  the  logic 
that  only  through  industrial  intercourse  with  the 
United  States  can  the  military  party  of  Germany  get 


the  sinews  with  which  to  precipitate  a  second  great 
world  war."  Accordingly  a  circular  has  been  sent  by 
the  Chamber  to  500,000  business  men  representing 
every  industrial  and  commercial  firm  of  any  importance 
in  the  country.  In  this  circular,  after  various  state- 
ments emphasising  the  militarism  of  Germany,  and 
explaining  the  menace  in  it  to  the  world's  peace,  the 
Chamber  goes  on  to  unfold  its  scheme,  which  is  briefly 
to  adopt  a  policy  based  upon  the  institutions  which 
may  be  evolved  in  Germany  as  a  consequence  of  this 
war.  It  is  proposed  that  the  industrial  leaders  cf 
Germany,  who  with  the  military  party  constitute  the 
most  powerful  caste  in  the  Empire,  shall  be  "  bluntly 
told  that  Germany  must  choose  a  resjwnsible  Govern- 
ment to  conclude  a  just  peace  or  suffer  the  consequences 
of  outlawry  after  the  war.  She  will  be  denied  economic 
intercourse  with  her  best  customer — the  United 
States."  "  Nodemocratic  constitution,  no  intercourse," 
in  other  words,  is  the  watchword,  and  it  is  thought  by 
the  Chamber  of  Commerce  that  this  blow  directed  by 
American  business  at  German  business  "  will  supple- 
ment the  steps  already  taken  to  bring  home  to  different 
classes  in  Germany  the  purpKJse  and  will  of  America 
to  establish  conditions  which  will  eliminate  as  far  as 
possible  factors  which  would  disturb  again  the  peace 
of  the  world." 

We  shall  be  very  interested  to  hear  what  the  response 
to  this  circular  is,  although  we  do  not  think  that  the 
Chamber  of  Commerce  quite  grasps  the  intricacies  of 
the  problem,  or  strikes  the  true  note.  It  is  carried 
away  by  its  reverence  and  reject  for  democratic  insti- 
tutions as  familiar  within  the  North  American  Republic, 
and  therefore  puts  what  may  be  called  a  "  fetish  " 
democracy  to  the  forefront  as  the  one  test  of  worthi- 
ness to  be  applied  to  candidates  for  admission,  or  re- 
admission,  into  the  comity  of  civilised  peoples.  In  the 
long  run  this  may,  perhaps,  be  the  best  test.  VV'e  can- 
not be  sure,  but  much  has  to  be  done  before  it  can 
be  applied  to  Germany  with  any  approach  to  confi- 
dence in  its  efficacy.  There  are  democracies  and 
democracies  in  the  world.  Next  door  to  it 
the  Republic  of  the  United  States  has  a  "demo- 
cracy" of  an  altogether  different  type  from  its 
own.  Mexico  has  an  excellent  paper  constitu- 
tion which  is  as  worthless  for  any  practical 
purposes  in  creating  and  maintaining  order  and  de- 
veloping civilisation  as  a  treaty  with  Germany  would 
be  in  guaranteeing  peace.  Is  there  any  surety  that,  sup- 
fKJsing  the  rulers  of  Germany,  labelled  "democratic," 
thought  they  could  hoodwink  mankind  by  playing  up  to 
the  high  ideals  of  free  and  enlightened  democracies 
with  all  manner  of  sweet  beguiling  words  they  would 
hesitate  to  do  so?  They  could  elaborate  a  perfectly 
modelled  paper  constitution  in  Germany  we  feel  quite 
sure  by  help  of  their  multitude  of  men  learned  in  the 
law  and  experts  in  political  mystification,  but  such  con- 
stitution could  be  used,  just  as  the  Reichstag  has  so 
often  been,  to  mask  designs  of  the  vilest  description 
against  the  liberties  and  proi>erty  of  envied  neighbours. 

Might  we,  therefore,  venture  to  recommend  to  the 
excellent  gentlemen  who  compose  this  Chamber  an- 
other and  more  effective  method  of  dealing  with  Ger- 
man obliquity?  It  is  one  often  outlined  in  these 
columns,  and  which  has  had  the  support  more  or  less 
hesitating  of  the  statesmen  responsible  for  affairs  in 
all  the  countries  of  the  Entente.  This  plan  briefly  is 
that  before  Germany  can  be  restored  to  the  commercial 
and  industrial  fellowship  of  nations  it  must  make  re- 
paration for  the  crimes  and  devastations  it  has  out- 
raged humanity  by,  under  the  impelling  savagery  of  its 
Prussian  military  tyrants,  and  also  make  restitution 
as  far  as  possible  of  the  property  it  has  stolen  or  dc- 
stroved.  That  is  the  one  practical  test  of  reparation 
and  repentance  to  be  applied  to  the  Germans.  If  they 
do  not  honestly  respond,  if  they  try  to  shuffle  out  of 
their  liabilities  towards  Belgium,  towards  Northern 
France  and  .Alsace-Lorraine,  towards  Serbia  and 
Poland,  towards  Russia  also,  and  towards  all  neutral 
countries  whose  shipping  has  been  ruthlessly  sent  to 
the  bottom  of  the  sea,  as  well  as  towards  the  Allies 


January  19,   igi8. 


Zbc  Jnveetore'  "Keview. 


69_ 


also  whose  merchant  marine  has  suffered  the 
like  fate,  and  if  they  refuse  to  disgorge  the 
stolen    property    of    all    kinds,    then    disabilities  must 

I  be  imposed,  and  kept  in  active  force  against  them,  so 
that,  from  the  minerals  extracted  to  the  furniture,  habi- 
liments, &c.,  burgled  by  prince  and  clodhopper,  they 
may  suffer  until  they  yield,  and  make  full  reparation. 
There  is  really  no  other  way  when  you  come  to  think 

1^- it  over.  Political  formula;  are  no  good  whatever  as 
H|4ests  of  a  nation's  moral  quality  or  intention,  and 
^"equally  futile  will  it,  be  to  elaborate  trap  tariffs  in  order 
to  put  disabilities  on  the  German  manufacturer  or 
trader,  so  as  to  mulct  him  of  his  profits.  Boycott  Ger- 
many, starve  it,  and  shut  it  in  upon  itself  until  it  pays 
back.  .And  in  the  word  "  Germany,"  Austria,  the 
equally  base  tool,  is  embraced. 

Let  United  States  men  of  business,  who  are  amongst 
the  keenest  and  most  practical  in  the  world,  unite,  then, 
with  their  confreres  in  Europe,  and  endeavour  to  draw 
up  a  scheme  of  commercial  policy  founded  on  this  rule 
which  all  can  adhere  to,  and  that  will  put  Germany  in  a 
dependent  but  not  wholly  impotent  place  until  she  has 
obeyed  the  judgment  to  be  pronounced  against  her  for 

I  the  crimes  she  has  committed.  We  shall  require  the 
products  of  Cierman  labour  for  many  a  year  to  come  to 
iielp  us  to  overcome  and  liquidate  the  dead  weight  of 
obligation  Prussian  schemes  of  world  conquest  have 
compelled  us  to  assume  in  .self-defence,  and  no  peace 
which  does  not  bring  home  their  guilt  to  the  degraded 
instruments  of  Prussian  ambition  by  compelling  them 
to  work  for  us,  to  liberate  the  races  they  have  enslaved 
and  to  hand  back  all  that  has  been  thieved,  will  be 
worth  the  bones  of  Bismarck's  "  Pomeranian  grena- 
dier." There  is  no  room  for  princely  obsequiousness  or 
diplomatic  staging  in  the  peace  we  must  secure. 


Insurance    News. 


A  fresh  record  has  been  set  up  by  the  Century  In- 
surance Company,  which  during  the  past  year  issued 
927  new  policies  for  ;^4i  1,000,  an  increase  of  149  in 
number  and  of  ^^i  1,000  in  the  amount,  the  new  annual 
premiums  being  ;^ri8,6oo,  as  contrasted  with  ;^i8,2oo 
in  igi6.  No  particulars  are  yet  available  as  to  the 
amount  re-assured,  which  in  1916  came  to  ;^48,9O0. 
In  the  case  of  the  National  Benefit  Life  and  Property 
Assurance  Company,  the  1917  figures  also  disclosed  an 
improvement  on  the  previous  year's  total,  the  amount 
being  ;^i50,ooo,  an  increase  of  /.52,70o;  this  is  the 
most  satisfactory  showing  made  .since  the  life  business 
was  begun  in  191 2. 

A  well-known  figure  in  the  insurance  world  retires 
next  month,  when  Sir  David  Paulin,  who  for  37  years 
has  been  manager  of  the  Scottish  Life  Assurance  Com- 
pany, hands  over  the  duties  to  the  present  secretary  of 
the  company,  Mr.  Lewis  P.  Orr ;  Mr.  Alex.  Eraser,  the 
actuary,  becomes  secretary  and  actuary.  Sir  D. 
Paulin  joins  the  board  of  directors. 

According  to  an  interesting  table  given  in  the  Policy, 


there  has  been  a  very  substantial  iiicrease  of  late  years 
in  the  proportion  o'  assets  invested  in  British  Govern- 
ment securities  by  the  great  insurance  companies ;  in 
fact,  war  finance  has  worked  almost  a  revolution  in  this, 
respect.  Owing  to  the  small  interest  yield,  coupled 
with  heavy  depreciation,  the  proportion  of  total  assets 
so  invested  had  declined  steadily,  so  that  in  1913  the 
amount  represented  only  about  i  per  cent,  of  the 
companies'  investments.  As  is  now  well  known,  since 
the  outbreak  of  hostilities  the  companies  have  givjn 
every  assistance  to  the  Government  in  the  shape  of 
large  contributions  to  the  various  war  loans,  with  the 
result  that  by  the  end  of  1916  an  average  of  13  per  cent, 
of  the  total  assets  was  represented  by  British  Govern- 
ment securities.  Since  that  date  the  ratio  has  been 
raised  to  over  19  per  cent,  of  the  1916  total  assets  as 
the  result  of  last  year's  great  response  to  the  5  per  cetit. 
War  Loan,  and  now  there  has  to  be  added  the  amounts 
of  War  Bonds  taken  up. 

An  increase  of  /."5,749  to  ;6"97.099  is  shown  in  the 
ordinary  premium  income  of  the  Salvation  Army  Assur- 
ance Company  for  the  year  to  June  30  last,  while  in 
the  industrial  department  there  was  an  increase  of 
;£^i9,369  to  £^344,440.  War  claims  paid  in  both  sec- 
tions came  to  ;^37,758,  bringing  up  the  total  disbursed 
since  the  beginning  of  the  war  to  ;^65,093,  of  which 
;^58,i29  related  to  industrial  policies.  By  an  addition 
o'  ;£^i  18,613  the  total  funds  were  raised  during  the 
year  p<:i,326,i59. 


Tribunals  and  Men. 

Sir  Donald  Maclean  deserves  thanks  for  his  instruc- 
tive and  courageous  speech  on  the  Man  Power  Bill  on 
Thursday  in  the  Commons.  It  is  all  right  to  call  for 
men — we  must  have  them,  our  military  authorities 
say — but  there  are  ways  and  ways  of  getting  them, 
and  hitherto  there  has  been  shameful  waste  in  the 
getting,  and  often  disgusting  misuse  of  the  men  when 
obtained.  Take  these  extracts  from  Sir  Donald's 
admirable  speech  : — 

He  had  not  the  slightest  doubt  that  the  nation  would  gladly 
give  authority  for  the  large  number  of  additional  men  asked 
for  if  it  were  reasonably  convinced  that  they  were  going  to  be 
rightly  used.  (Cheers.)  That  was  the  difficulty  of  the  whole 
situation.  Unless  some  drastic  action  was  taken  men  would  con- 
tinue to  be  placed  in  the  Army  under  conditions  which  could 
have  no  other  result  than  that  they  would  break  down  physically. 
A  case  came  before  his  tribunal  a  little  time  ago  of  a  skilled 
electrician  who  was  engaged  in  a  factory  where  Army  rations 
were  made.  It  was  represented  that  this  type  of  man  was  badly 
wanted  in  the  Flying  Corps.  Ultimately  it  was  decided  that  he 
was  of  no  use  to  the  Flying  Corps,  and  he  was  advised  to  return 
to  civil  life  ;  but  he  was  enlisted  by  a  zealous  sergeant,  and  was 
afterwards  discovered  in  khaki  washing  dishes.  Another  man 
said  he  was  a  skilled  electrician,  with  17  years'  practical  experi- 
ence, and  that  his  physical  defects  were  rupture  and  acute 
gastritis.  At  the  commencement  of  the  war  he  took  up  an  ap- 
pointment in  connection  with  the  production  of  explosives.  He 
contracted  T.N.T.  poisoning,  and  whilst  he  was  convalescent  he 
was  enlisted  in  the  Army.  He  wrote  to  say  that  he  had  been  put 
into  the  motor  transport,  and  was  there  engaged  in  nothing  buJ» 
mere  labouring  work,  such  as  picking  up  paper  and  cleaning 


TD. 


STANDARD  BANK  OF  SOUTH  AFRICA,  L 

Bankers  to  the  Government  of  the  Union  of  South  Africa  in  Cape  Province ;   to  the  Imperial  Government  in  South  Africa  and  to  the  Administration 

of  Rhodesia. 

Subscribed  Capital    ...    £6,194,100     I     Reserve  Fund     £2,000,000 

Paid-up  Capital £1,548,525     {     Uncalled  Capital         ...    £4,615,575 


W.\I.  REIERSON  ARBUTHNOT,  Fsq 

SIR  DAVID  M.  BARBOUR,  K.C.S.I.,  KC.M.G. 

ROBERT  E.  DICKINSON,  Esq. 

Head  Offices   10  CLEMENTS  LANE, 

New  York  Agency:— 68,  WALL  STREET,    Over  250 

EVERY  DESCRIPTION  OF  BANKING  BUSINESS  transacted  with 

the  Cape  Province,  Natal,  Orange  Free  Slate,  Transvaal,  Rhodesia, 
Nyasaland,  East  Africa  Protectorate,  Uganda,  Zanzibar,  Portuguese 
East  Africi,  South-West  Africa  Protectorate,  and  the  Belgian  Congo, 
and  with  the  Bank's  Agencies  in  New  York  and  elsewhere. 

CURRENT  ACCOUNTS  are  opened  on  the  usual  terms. 

DEPOSITS  RECEIVED  for  fixed  periods  at  rates  which  may  be  ascer- 
tained on  application. 

BILLS  NEGOTIATED  AND  COLLECTED. 

The  officers  of  the  Bank  are  bound  not  to  disclose  the  transactions  of  any 


Board      of      Directors. 

JAMES  FAIKBAIRN  FINLAY,  Esq.,  C.S.I. 
HORACE  PEEL,  Esq. 
WILLIAM  SMART,  Esq. 


Rt.  Hon.  LORD  SYDENHAM,  G.C.S.l 

G.C.M.G.,  G.C.I.E.,  QBE. 
H.  L.  M.  TRITTON,  Esq. 


LOMBARD  STREET,  LONDON,  E.C.  4. 

Branches  and  Agencies  In  South  and  East  Africa- 

MAIL  AND  TELEGRAPHIC  REMITTANCES  macle. 

LETTERS  OF  CREDIT  AND  DRAFTS  granted  on  the  branches  and 

Agencies  of  the  Bank. 
THE  BANK  ISSUES  CIRCULAR  LETTERS  OF  CREDIT  available 

in  all  parts  of  the  world. 
COMMERCIAL  LETTERS  OF  CREDIT  ISSUED.    „„    „    .    . 
PURCHASE  AND  SALE  OF  STOCKS  AND  SHARES  e6fected. 
DIVIDENDS,  ANNUITIES,  &c.,  received. 
EXECUTOR  AND  TRUSTEE  Business  undertaken. 
of  its  customers.  FRANCIS  SHIPTON,  London  Manager. 


70 


Zbc  Jnvestors'  IRevtew. 


J.^NUARY    19,    1918. 


windows.  A  man  came  before  him  two  weeks  ago  who  had  been 
combed  out  from  one  of  the  arsenals.  He  was  32  years  of  age, 
had  six  children  under  12  years  of  age,  and  had  been  working 
three  years  in  the  most  dangerous  part  of  the  arsenal.  Every- 
body wanted  that  sort  of  thing  stopped.  He  feared  the  result  of 
the  grave  statement  that  the  Army  wanted  450,000  men  would 
be  that  tribunals  would  be  inclined  to  send  almost  every  man 
they  could  into  the  Army,  and  almost  the  majority  of  the  men 
they  were  dealing  with  would  be  men  who  were  unfit  for  the 
Army. 

He  would  suggest  that  the  practice  should  be  set  up  which 
quite  recently  had  been  set  up  in  regard  to  the  London  Tribunal  : 
it  was  within  the  powers  of  the  tribunals  all  over  the  country. 
If  it  was  considered  that  a  man  in  this  classification  ought  not 
in  the  national  interest  to  go  into  the  Army,  they  said  he  must 
do  some  work  of  national  importance,  and  adjourned  the  case 
for  evidence  that  this  course  was  being  taken.  They  then  gave 
exemption  for  about  three  months,  ond  kept  the  case  well  in 
hand,  so  that  there  could  be  little  opportunity  of  abuse.  If  that 
practice  were  widely  extended,  the  tragedy  which  now  went  on 
would  be  prevented.  Seven  times  out  of  ten  these  men  who  were 
taken  from  civilian  life  were  over  35  years  of  age,  and  the 
sickness  casualties  in  the  Army  in  the  cases  of  men  between  35 
and  40  were  nearly  250  per  cent,  more  than  in  the  case  of  men 
between  28  and  35.  They  took  a  man  of  this  sort  from  his 
civilian  life  and  put  him  in  the  Army.  He  broke  down  and  was 
pensioned.  Up  to  the  pre.sent,  of  the  pensions  already  granted 
15  per  cent,  were  in  re.spect  of  sickness  and  disease.  A  large 
proportion  of  the  men  were  physically  fit,  and  hid  contracted 
sickness  in  the  field  no  doubt ;  but  a  very  large  and  preventlble 
proportion  was  in  the  case  of  men  who  never  ought  to  have  gone 
into  the  Army  at  all.  From  the  point  of  view  of  the  man's  own 
domestic  circle  this  was  pitiable  enough  ;  but  there  was  the 
national  point  of  view.  These  men  were  derailed,  and  it  would 
cost  the  nation  a  lot  of  money  and  time  to  get  them  going  on  the 
rails  again,  if  they  ever  did.  In  making  this  appeal  he  believed 
he  was  speaking  the  real  desire  of  every  man  in  the  House.  If 
they  were  dealing  with  malice  they  would  know  where  they 
were  ;  but  they  were  dealing  with  colossal  stupidity. 


The  Week  in  Minos. 


MINING    NEWS. 


Transvaal  Gold  Prodcction— The  production  of  gold  in 
December  amounted  to  /'3, 068, 639,  a  decrtase  of  ;f 221,066  on  the 
same  month  of  last  year.  The  following  table  shows  the  monthly 
production  since  January,  1912  ; — 


There  has  been  marked  activity  in  the  mining  markets  this 
week,  and  there  have  been  several  spectacular  spurts  in  prices. 
The  predominant  feature  was  a  rise  of  no  less  than  21s.  in  Gaika 
Gold,  a  Rhodesian  property  which  has  reported  the  strike  of 
a  rich  body  of  ore  in  the  south  section  of  the  mine.  Other 
Khodesian  shares  also  advanced  sharply.  Broken  Hill  .ind 
British  tin  shares  have  been  active  and  buoyant. 

South  and  West  Africans. 

lu  the  South  African  market  a  good  deal  of  support  has  been 
forthcoming  for  Gold  Fields,  which  have  risen  4s.  3d.  to 
35s.  3d.,  and  Gold  Mines  Investment  have  advanced  is.  to  17s., 
and  Gold  Trusts  is.  3d.  to  24s.  3d.  in  sympathy.  East  Rands 
have  improved  to  6s.  gd.,  and  Randfontein  Estates  have  risen 
IS.  to  i6s.,  and  Goerz  is.  3d.  to  15s.  gd.  on  dividend  hopes. 
Gedulds  have  been  notably  firm  at  2^^,  but  provincial  selling  has 
caused  City  Deeps  to  decline  7-32  to  3^^.  Among  Rhodesian 
shares,  Gaika  Gold  was  very  actively  dealt  in  up  to  32s.  6d., 
but  profit-taking  caused  a  relapse  to  273.  6d.,  which,  however, 
shows  a  rise  of  21s.  on  the  week.  Gold  Fields  Rhodesian, 
which  controls  the  Gaika,  have  risen  is.  to  8s.  3d.,  and  Lonely 
Reefs  have  spurted  to  34s.  6d.  on  a  good  development  report. 
There  was  active  buying  of  Kldorados  and  Planet  Arcturus 
on  a  report  that  an  agreement  has  been  made  between  them 
by  which  the  latter  will  take  over  the  plant  of  the  former  when 
its  mine  is  exTiausted.  Kldorados  have  risen  3s.  to  los.  6d., 
and  Planets  3s.  to  6s.  3d.  Bwanas,  on  the  reported  signing 
of  the  agreement  with  the  Minerals  Separation  Co.,  rose  is. 
to  6s.  3d.  Diamond  descriptions  have  weakened  slightly,  De 
Beers  deferreds  being  quoted  at  13^.  West  Africans  show  little 
change. 

C'OPPER    AND     MlSCF.II.ANKOUS. 

Copper  shares  have  been  in  request,  particularly  Mount 
Elliotts,  which  have  risen  J  to  4^,  and  Mount  Oxides,  which 
have  jumped  from  7s.  to  los.  Broken  Hill  shares  show  a  general 
advance.  Proprietarys  have  risen  3s.  3d.  to  57s.  6d.  on  the 
announcement  that  Lysaghts  are  erecting  a  galvanised  iron 
plant  in  connection  with  the  Proprietary's  iron  and  steel  works 
at  Newcastle.  South  Silvers  have  risen  J  to  gfi,  Block  Tens 
IS.  gd.  to  26s.  gd.,  and  British  is.  3d.  to  37s.  6d.,  ex  dividend. 
Helped  by  the  firmness  of  the  metal  market,  tin  shares  have  been 
prominently  active  and  firm.  Rumours  of  encouraging  de- 
velopments on  the  rich  Rogers  lode  have  stimulated  purchases 
of  Ea.st  Pools,  which  have  risen  4s.  3d.  to  22s.,  and  of  South 
Croftys,  which  are  2s.  gd.  higher  at  24s.  gd.  C-opengs  at  i% 
and  Tronoh  Souths  at  los.  are  also  appreciably  higher.  Mexi- 
can shares  have  been  in  request,  and  Camp  Birds  at  Ss.  6d. 
and  Esperanzas  at  8s.  6d.  .show  rises  of  is.  A  number  of 
low-priced  shares  of  various  descriptions  have  been  galvanised 
into  life,  but  there  is  every  reason  why  the  public  should  not 
participate  in  these  gambles.  Indian  shares  have  attracted 
some  attention,  including  Burmas,  which  are  \  higher  at  4J. 


Month. 

1912. 

.   1913. 

I9'4. 

19IJ. 

1916. 

19  >  7. 

£ 

£ 

f 

i 

(^ 

£    . 

January   . . 

3. '30,830 
2,989.832 
^, 518,6118 

3.353. "6 

2,708,470 

3.037.058 

.311.948 

3.324,418 

Februanr.. 

3. "8,325 

2,660,186 

2,872,406 

3,201,0(3 

3,063976 

March  .... 

3,358,05c 

2.9>7,346 

3.2C2,5I4 

3.384.12' 

3.343.36J 

April  .... 
May 

3. '33.383 

3>334,35» 

2,904.924 

3,l6o,f5l 

3.205.643 

3.155.121 

3.3".794 

3373,998 

3.059.340 

i',zoi',in 

3.303.377 

3,310,618 

June 

July  

3.202.5'7 

3.173.382 

3.049.558 

3.235.;67 

3,227,101 

3.255.198 

2.783.9'7 

3,<'>.39« 

3.272,258 

3.232.89' 

3219,094 

August... . 

3.248.395 

3.092.754 

3.024.037 

3.307.975 

3.3'8.ii6 

3,214.079 

September 

3.'76,''46 

2,999686 

2,982,630 

3.299.423 

3,277,408 

3.135837 

October   .. 

3,265,150 

5,051,701 

3.1 '6,754 

3.J88,I22 

3.365.642 

3. '91. 279 

November 

3.216,955 

2,860,788 

3,040,677 

3,3>7,534 

3.326,253 

3,070,426 

December 

3,197,962 

2,857.938 

2,952.755 

3.317.949 

3,289.705 

5.otS,C39 

Total.. 

38,757.560 

37.358.040 

35.588,075 

38,627,461 

59.484,934 

38,323.921 

The  total  for  the  year  was  ^38,323.921,  a  decrease  01  /i, 161,013 
on  the  record  figure  for  1916. 

Native  Labour  Returns.— For  the  first  time  since  last  February 
an  appreciable  improvement  is  shown  in  the  latour  supply.  The 
total  shows  an  increase  of  3,692,  the  gold  mines  getting  3,657  more 
labourers. 


Month. 


December,  1916. 
January,    1917,.. 

February 

March   

April 

May   

June  

July    

August 

September  

October 

November    

December    


Natives 
on  Gold 
mines. 


19'. 547 
188,624 
I9>.095 
100,028 
185.975 
180,168 
■  75.727 
«7',653 
170,817 
I7'.334 
170.33' 
169,083 
172,740 


Natives 
on  Coal 
mines. 


11,487 
11,611 
",•98 
".494 
",435 
11,432 
I ',•'58 
11,381 
11,401 
11,601 
11,841 
",633 
",695 


Natives 

on  Total 

Diamond  1    natives. 
Mines. 


5.194 
5.591 
6,268 
6,620 
6.3U 
5,805 
5,369 
5.223 
5.028 
4.791 
4,620 
4.620 
4,593 


208,228 
205,826 
208,931 
308,142 
203,724 
197,4<5 
192.354 
188,257 
187,246 
187726 
186,792 
185,336 
169.02b 


Eastern  Smelting.— The  nett  profits  in  the  year  ended 
August  31  amounted  to  ^4g,932,  as  against  ,,£21,395.  The  pro- 
perty account,  which  originally  stood  at  ;£23,2oi,  and  was  re- 
duced to  ;£ib,i82  by  the  end  of  1916,  has  now  been  entirely 
written  off.  It  is  proposed  to  pay  a  balance  dividend  at  the 
rate  of  10  per  cent,  on  the  preferred  .shares,  and  to  pay  a 
dividend  of  10  per  cent.,  or  5  per  cent,  more,  on  the  ordinary 
shares,  and  to  carry  forward  ;^2i,6gi,  against  ^'25,01 7. 

Zaaii'La.\ts  Tin. — The  report  for  the  year  ended  July  31  states 
that  21,132  tons  were  milled  for  a  return  of  355  tons  of  tin  con- 
centrates, assaying  70.2  per  cent.  Towards  the  end  of  the  year 
it  was  decided  to  extend  prospecting  and  exploration  work, 
and  a  series  of  boreholes  are  being  put  down  in  unknown 
ground.  The  working  profit  amounted  to  ;£i,562,  and  the  nett 
profit  to  .^950,  against  j^3,2go.  During  the  first  five  months 
a  loss  of  ,^3,800  was  incurred.  The  appropriation  account 
shows  that  ^£6,000  in  reserve  has  been  appropriated  for  current 
expenditure.  The  average  price  realised  from  sales  of  concen- 
trates was  /198  gs.  per  ton  of  metal,  as  compared  with  an 
average  of  ;^i68  6s.  6d.  In  future  the  board  has  decided  to 
convert  all  concentrates  into  refined  ingot  tin.  No  dividend 
has  been  paid  since  igi4-i5,  when  35  per  cent,  was  distributed. 

R.\ND  Mining  Leases. — A  new  Mining  Leases  Bill  will  be 
introduced  in  the  Union  House  of  Assembly  this  session.  It 
provides  for  the  creation  of  a  board  for  granting  additional 
ground  under  lease  to  Mynpacht  holders,  and  amends  the  Gold 
Law  of  igo8.  The  passage  of  the  Bill — two  previous  measures 
of  the  kind  have  failed  to  pass — would  enable  the  development 
and  exploitation  of  the  Far  Eastern  Rand  to  be  proceeded  with 
more  rapidly  than  in  the  past.  Several  properties,  including 
the  Grootvlei  and  Rand  Collieries,  are  lying  idle,  because  the 
existing  areas  are  too  small  to  enable  the  properties  to  be 
worked  profitably. 

MINING  RETURNS  FOR  DECEMBER. 


Ashanti.— 10,195  tons;  value,  £4^.261  (Nov.,  ;f40.75o)- 

Aurora  West.— 14,600  tons;  profit.  /3.160  (Nov.,  ;f 3.078)- 

Balaghat.—Output.  2,073  •'z'-  ^"^  8o'd  (Nov.,  1,897  ozs.). 

Bantjes. — 20, 170  tons;  profit,  ^fig. 

Brakpan.— 55,300  tons;  profit.  ;f 39.934  (Nov.,  ;f 40,075). 

Cam  and  Motor —11,474  ;  profit.  —  (Nov.,  ;f798). 

Champion  Reef.— 30.236  tons;  7.863  ozs.  fine  gold  (Nov..  7.824 

ozs.). 

City  and  Sub —20,800  tons;  profit.  ;f6,879  (Nov..  /8,oi3). 
City  Deep.— 62,500  tons;  profit,  ;f54.378  (Nov..  £^9.482). 
Cons.  Langlaagte— 41,550  tons  ;  profit.  /i5,oi3  (Nov..  /'is, 225). 
Cons.  Main  Reef.— 25,520  tons  ;  profit,  £11.898  (Nov.,  /ii,756). 
Crown.— 157,000  tons;  profit,  £44,005  (Nov.,  /37.324). 
Durban  Rood.  Deep.— 25,200  tons  ;  profit.  ;f7.038  (Nov..  ^2,841). 
East  Rand  Prop.— 131,000  tons  ;  profit,  ;f  12,762  (Nov..  £i3.30i)- 


January  19,  1918. 


Zhe  Jnvestots'  IRevlew. 


71 


Ferreira  Deep. — 42,300  tons  ;  profit,  /iS, 799  (Nov.,  ;f  16,896). 
Geduld. — 39,000  tons;  profit,  /ig, 758  (Nov.,  ^20,078). 
Geldenhuis  Deep. — 51, 200  tons;  profit,  ^3,062  (Nov.,  ;f3,5.(5). 
Ginsberg.— 13, 100  tons,  ;f  13, 530;  profit,  ;^i,»03  (Oct.,  /1.539). 
Glencairn. — 20,350  tons  ;  profit,  ;f 312  (Nov.,  ^1,248). 
Glynn's  Lydenburg. — 4,010  tons;  profit,  ;f3,034(Nov.,  ^2,344). 
Gov.  Areas  Mod. — 101,000  tons  ;  profit,  £58,550  (Nov.,  /58,534). 
Ivanhoe  G.  Corp. — 18,613  tons  ;  profit,  ^9,004  (Nov.,  /9,oo2). 
Jupiter^^22,30o  tons  ;  profit,  ^4, 505  (Nov.,  ;f 4, 365). 
Knight  Central. — 25,796  tons  ;  profit,  ,^500  (Nov.,   ^103). 
Knight's  Deep.— 93,500  tons  ;  profit,  A, 004  (Nov.,  /2,oo6). 
I-anglaagte  Estate. — 41,540  tons  ;  profit,  ^9,512  (Nov.,  ;f8,o68). 
Lonely  Reef. — 5,100  tons  ;  profit,  ;fii,47i  (Nov.,  ;f9,776). 
Luipaards  Vlei. — 20,020  tons  ;  profit,  /18  (Nov.,  £ioy). 
Main  Reef  West. — 25,570  tons;  profit,  ^2,988  (Nov.,  ^'3,402). 
Meyer  &  Charlton. — 12, 670  tons;  profit,  ;^29,424  (Nov.,  ^28,024). 
Modder  "  B." — 41,600  tons  ;  profit,  ^'57,339  (Nov.,  /57,258). 
Modder  Deep. — 41,500  tons  ;  profit,  £'47,394  (Nov.,  ;^48, 897). 
Mysore.— 27,376  tons,  17,868  ozs.  fine  gold  (Wov.,  16,523  ozs.). 
New  Goch. — 17,560  tons  ;  profit,  ;f  1,440  (Nov.,  ^2,279). 
New  Heriot. — 12,600  tons  ;  profit,  ^5,484  (Nov.,  ;f  3,761), 
New  Kleinfontein.— 60,780  tons;  profit,  /le, 485  (Nov.,  ;f  15,353). 
New  Modder. — 54,000  tons;  ;^65,*56  (Nov.,  ^'65,516). 
New  Primrose.^ 1 8, 000  tons  ;  profit,  £1,802  (Nov.,  / 1,808). 
New  Unified.— 13,360  tons;  profit,  £'3,274  (Nov.,  ;f3,486). 
N.  Anantapur. — 1.800  tons  ;  1,124  ozs.  fine  gold  (Nov.  1,125025.). 
Nourse.— 34,600  tons  ;  /47,95s  ;  profit,  £'1,747  (Nov.,  £'4,732). 
Nundydroog. — 8,470  tons,  6,962  ozs.  fine  gold  (Nov  ,  6,482ozs.). 
Ooregum.— 30,190  tons;  7,574  ozs.  fine  gold  (Nov.,  7,543025.). 
Pahang  Consolidated. — 14,000  tons ;  185  tons  black  tin. 
Princess  Estate.— 17,500  tons  ;  loss,  /316  (Nov.,  ;^i,o64).  * 

RandfonteinCent. — 162,000  tons;  profit,  £'33,884  (Nov.,  £^30,475). 
Rezende. — 5,000  tons  ;  profit,  fifi-jz. 

Robinson  Deep. — 46, 900  tons;  profit,  /i3,i8o  (Nov.,  £'10,517). 
Robinson. — 45,200  tons;  profit,  £'13,888  (Nov.,  £'14,067). 
Roodepoort  United.— 28,869  tons  ;  profit,  £'2,852  (Nov.,  ^1,403). 
Rooiberg    Minerals.— 1,552  tons  ;  profit,  £'1,310  (Nov.,  £'1,424). 
Rose  Deep. — 48,000  tons  ;  profit,  £'16,905  (Nov.,  £'22,978). 
Shamva.— 49,685  tons  ;  profit,  £'14,147  (Nov.  ;£  13,042). 
Sheba.— 6,407  tons  ;  1,586025. ;  loss,  £'588  (Nov.,  loss,  £'1,529). 
Simmer  and  jack.- 55,900  tons  ;  profit,  £'21,286  (Nov., £'21,117). 
Simmer  Deep.^43,600  tons;  profit,  £'4,039  (Nov.,  ^'4,160). 
Springs. — 29,000  tons  ;  profit,  £'30,336  (Nov.,  £30,722). 
Sub  Ni^el.— 10,050  tons  ;  ^24,051  ;  profit,  £'8,510  (Nov.,  £;8,025). 
Transvaal  Gold. — 14,825  tons;  profit,  £'10,119  (Nov.„/8,897). 
'Van  Ryn  Deep. — 41,260  tons;  profit,  £'74,017  (Nov.,  £'55,028). 
Village  Deep.— 48,600  tons  ;   profit,  £'15,641  (Nov.,  £'14,765). 
Village  Main  Reef.— 23, 650  tons;  profit,  £^8, 783  (Nov.,  ;fii,42o) 
Wanderer. — 13,680  tons  ;  loss,  ^251  (Nov.,  /i,25o). 
West  Rand. — 36,070  tons  ;  profit,  £'1,030  (Nov.,  £^3,119). 
Witwat«rsrand.~32,765  tons;  profit,  £'12,727  (Nov.,  £'13,001). 
Wit.  Deep. — 33,420  tons  ;  loss,  £'1,054  (Nov.,  loss,  £^576). 
■Wolhutor. — 32,400  tons  ;  profit,  £'10,089  (Nov.,  £':i,426). 


DIVIDENDS     ANNOUNCED. 


Agua  Santa  Coffee  Co.— At  the  rate  of  7  per  cent,  in  respect  of 
half-year  ended  June  30,  1917,  on  the  preference  shares. 

Australian  Pastoral  Co. — Final  5  per  cent.,  making  8  per  cent, 
for  the  year,  against  6  per  cent.  ;  £^2,846  forward,  against  £'2,418. 

Bootle  Cold  Storage  and  Ice. — Final  on  original  ordinary  stock 
at  rate  of  12  per  cent.,  making  10  percent,  for  the  year;  on  new 
ordinary  stock  at  rate  of  10  per  cent. ;  bonuses  of  2j  per  cent,  on 
both  ordinary  and  preference  stock. 

Bank  of  New  South  Wales. — Interim  at  the  rate  of  10  per  cent, 
per  annum  for  quarter  to  June  30  last  was  paid  in  August ; 
quarter's  dividend  to  September  30  at  rate  of  10  per  cent,  per 
annum;  to  augmentation  of  reserve  fund,  ;f75,ooo  ;  carried  for- 
ward, £[1 19, 187.  A  year  ago  dividend  was  the  same,  with  £'50,000 
to  reserve  and  £'105,241  forward. 

Clonakilty  Extension  Railway  Co.— 3jper  cent,  per  annum  on 
ordinary  stock  for  half-year  ended  Dec.  31  last,  making  2J  per 
cent,  for  the  year,  carrying  forward  £'106.  For  1916  was  at  the 
same  rate. 

Dundee  Coal  Co. — 10  per  cent. 

Equitable  Bank. — Final  is.  6d.  per  share  (making  15  per  cent, 
for  year,  less  tan),  the  same  as  a  year  ago. 

East  Pool  and  Agar. — Interim  at  rate  of  3d.  per  share,  less  tax. 

Foreign  and  Colonial  Investment  Trust.— For  the  half-year 
ended  Jan.  10  at  rate  of  7  per  cent,  per  annum  (making  6  per  cent. 
fo»  year)  upon  deferred  stock,  the  same  as  last  year. 

Hong  Kong  and  Shanghai  Banking  Corporation. — Final  for  1917 
of  £'2  3s.,  and  a  bonus  in  addition  to  dividend  of /^i,  subject  to 
tax;  to  silver  reserve  fund  $1,000,000,  writing  off  bank  premises 
account  $1,000,000,  forward  (about)  §3,200,000. 

Indemnity  Mutual  Marine  Assurance.— For  the  half-year  to 
Dec.  31  last  of  los.  per  share  and  a  bonus  of  6s.  per  share. 

Insulinde  (Sumatra)  Rubber  and  Tobacco  Estates.— Final 
dividend  of  20  per  cent.,  less  tax,  making  30  per  cent,  for  year, 
against  20  per  cent. 

Ivanhoe  Gold. — Third  quarterly  interim  in  respect  of  the  year 
1917  of  2s.  6d.  per  share,  payable  Jan.  30. 

Java  Investment,  Loan  and  Agency. — Interim  5  per  cent.,  less  tax. 

Liverpool  Overhead  Railway. — Final  of  2  per  cent,  (actual)  on 
the  ordinary  shares,  less  tax,  making  3J  per  cent,  for  the  y»ar. 


Lovell  and  Christmas. — Interim  on  ordinary  shares  at  6  percent. . 
per  annum  for  the  half-year  to  Dec.  31 . 

Lancashire  and  Yorkshire  Bank. — Further  i6s.  per  share 
for  half-year  and  a  bonus  of  2s.  8d.  per  share  for  year  With  this 
bonus  the  distribution  per  share  is  practically  the  same  as  it  was 
before  the  war.  A  year  ago  no  bonus  was  paid,  while  £'ao,ooo 
was  then  applied  to  write  down  investments. 

Lister  and  Co.  (Bradford). — On  ordinary  shares  of  5  per  cent, 
and  bonus  of  5  per  cent.,  less  tax,  for  half-year  ended  Nov.  30, 
making  a  total  of  12J  per  cent,  for  year.  The  carry  forward  is 
increased  from  ^147, 200  to  £'170,295.  For  1915-16  the  distribution 
was  10  per  cent. 

Marabau  (F.M.S.)  Rubber  Co.— 8  per  cent,  on  ordinary 
shares  ;  estates  account,  £'i,ooo;  reserve,  £^5,000 ;  forward  (subject 
to  excess  profits  duty,  if  any),  £['1,471. 

Mclntyre,  Hogg,  Marsh,  and  Co. — For  the  half-year  ended  Nov. 
30  on  ordinary  shares  at  rate  of  13  per  cent,  per  annum,  making 
10  per  cent,  for  year,  the  same  as  last  year. 

Mortgage  Co.  of  the  River  Plate. — Final  10  per  cent.,  together 
with  a  bonus  of  2  per  cent.,  less  tax,  on  the  amount  paid  up  on 
ordinary  shares,  payable  Feb.  i,  making  20  per  cent,  for  the  year, 
with  ;f  15,000  to  reserve,  the  same  as  last  year. 

D  and  W.  Murray. — 5  per  cent,  for  final  six  months,  declared 
last  Oct.  on  the  oi-dinary  share  capital,  confirmed ;  £['28,000  to 
special  reserve  account ;  /lo.ooo  to  debenture  stock  redemption 
fund;  £^819  forward. 

National  Bank. — At  rate  of  10  per  cent,  per  annum  for  past  half- 
year,  less  tax,  the  same  as  a  year  ago  ;  £50,000  to  rest ;  ^'23,616 
forward,  against  £'21,128  a  year  ago. 

National  Provincial  Bank  of  England. — Further  8  per  cent., 
making  16  per  cent,  for  past  year.  After  payment  of  a  bonus  to 
members  of  the  staff  and  allowances  to  those  on  actiye  service, 
amounting  to  £148,000,  £'300,000  is  applied  to  the  reserve  fund 
and  £350,000  to  contingencies,  carrying  forward  £182,932. 

Northern  Corporation. — Final  at  rate  of  5  per  cent,  per  annum 
on  preference  shares,  and  at  rate  of  17  per  cent,  per  annum 
(making  12J  per  cent,  for  year)  on  ordinary  shares  for  half-year 
ended  Dec.  31,  1917. 

Real  Estate  Corporation  of  South  Africa.— Interim  of  2  per  cent, 
less  tax,  payable  on  the  23rd  inst. 

Royal  Bank  of  Canada. — 3  per  cent.,  being  at  the  rate  of  12  per 
cent,  per  annum,  for  the  three  months  to  Feb.  28. 

Sao  Paulo  Tramway,  Light,  and  Power  Co. — 2J  per  cent,  on  the 
common  stock. 

Sea  Insurance  Co. — Subject  to  income-tax  of  55.  in  the  £,  los. 
per  share,  making  20s.  per  share  for  the  year.  The  sura  of 
£40,000  has  been  taken  to  provide  for  the  depreciation  in  the 
market  value  of  the  securities.  The  balance  at  the  credit  of  profit 
and  loss  account  is  therefore  upwards  of  £100,000. 

Straits  Settlements  (Bertam)  Rubber  Co.— Interim  of  5  per  cent, 
(actual),  less  tax,  payable  about  the  end  of  February,  against  10 
per  cent,  actual. 

Soengei  Rampah  Rubber  and  Coconut  Plantations. — Interim  of 
2  J  percent,  less  tax. 

Sungkai-Chumor  Estates. — Interim  of  xo  per  cent,  (actual)  in 
respect  of  the  year  ending  June  30,  1918. 

Tekka,  Limited. — is.  6d.  per  share  and  bonus  of  2S.  6d,,  less  tax 
or  a  total  of  4s.,  against  is.  6d.  a  year  ago. 

Tekka  Taiping. — is.  per  share,  less  tax,  payable  on  the  26th 
inst.,  the  same  as  a  year  ago. 

Union  Bank  of  Australia. — At  rate  of  10  per  cent,  per 
annum,  and  a  bonus  of  2  per  cent.,  both  free  of  tax,  together  being 
at  rate  of  14  per  cent,  per  annum,  the  same  as  a  year  ago  ;  £73,503 
forward. 

Waterlow  Brothers  and  Layton. — Balance  on  ordinary  shares  of 
2  per  cent.,  making  7  per  cent,  for  the  year;  the  same  ;  £5,000 
is  again  put  to  reserve  ;  forward,  £12,302,  subject  to  excess  profits 
duty,  against  £7,678. 


OILFIELDS    PRODUCTION. 

Anglo-Egyptian. — Past  week  :— Gemsah,  22  tons,  against  664 
tons  previous  week ;  Hurghada,  3,689  tons,  against  3,549  tons 
previous  week. 

Baku  Russian  Petroleum.— Week  ended  Dec.  15,  67,225  poods, 
and  week  ended  Dec.  22,  67,150  poods. 

Baku  Russian. — Week  ended  Jan.  5,  67,580  poods. 

Bibi  Eibat.— Week  ended  Dec  16,  618  tons. 

Maikop  Orient.— Plot  435a,  Well  3 ;— Week  ended  Jan.  5, 
14,500  poods. 

United  British  of  Trinidad.— Week  ended  Jan.  9,  463  tons. 


Cotton  in  the  Transvaal. — A  recent  meeting  of  the  Industries 
Board,  held  in  Johannesburg,  discussed  the  cotton  production 
in  the  Transvaal,  and  reported  very  favourably  on  the  exten- 
sion of  the  industry.  Twice  the  area  is  under  cotton  cultiva- 
tion this  year,  as  was  the  case  twelve  months  ago,  the  total 
Transvaal  area  being  about  4,000  acres.  The  Rustenburg, 
Waterberg,  and  Zoutpansberg  areas  are  the  principal  ones, 
though  some  cotton  is  raised  in  Zululand.  A  committee  of  the 
board  will  probably  visit  the  Rustenberg  district  shortly,  and 
interview  farmers  there  on  the  prospects  of  an  extension  of 
cctton-growing  in  the  near  future. 


73 


Zbe  Jnvestors^'IRet^tevf} 


January  19,  J918. 


PUBLIC     INCOME     AND    EXPENDITURE. 

The   following  are   the  receipts  into   and   issues  out     of    the 
Exchequer  between  April  1,  1917,  and  January  12,  1918:— 

Total  Receipts 

into  the 

Etcheqner  from 

April  i(  igi6,  to 

Jan.  13,  igiy. 


Tea,  Oil  and   Rubber. 


Balances   in    Exchequer   on 

April  I— Bank  of  EnglAnd  . 

Bank  of  Ireland    . 

Revenub. 

Customs  

Excise  , 

Estate.  &c.,  Duties  , 

Stamps 

I-andTax \ 

House  Duty    J 

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Duties,  &c 

Land  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    fron;    Sundry 

Loans,  &c 

Miscellaneous 

Hevenue  

Total,  including  Balance  . . 


Estimate 

for  the 

Year 

igi7-iqi8. 

(See  note.) 


70,750,000 

34,930,00c 

29,000,000 

8,000,000 

2,600,000 


224,000,000 

200,000,000 

400,000 

33,700,000 

600,000 

7,500,000 
g7.iQ0.0o0 


638,600,000 


Other  Receipts. 

Repayment  of  Advances  for  Bullion   

Repayment  of  Advances  for  Interest  on 
Exchequer  Bonds  under  the  Capital  Expen- 
diture (Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For  Treasury  Bills  (tor  supply)   

Fov  Exchequer  Bonds  under  the  Capital 
Expenditure  (Money)  Act,  1904  

For  Exchequer  Bonds  under  the  Cunard 
Agreement  (Money)  Act,  1904  

For  4^  per  Cent.  War  Loan.  1925-1945 

For  5  per  Cent.  Exchequer  Bonds,  1919  .... 

For  5  per  Cent.  Exchequer  Bonds,  1920    

For  5  per  Cent.  Exchequer  Bonds,  1921  

For  5  per  Cent.  Exchequer  Bonds,  1922   

For  6  per  Cent.  Exchequer  Honds,  1920    .... 

For  War  Expenditure  Certificates   

For  Wat  Savings  Certificates 

For  other  Debt  created  under  the  War  Loan 
Acts,  1914-1917 

For  4  per  Cent.  War  Loan,  1929-1942,  and  5  per 
Cent.  War  Loan,  1939-1947   

For  National  War  Bonds    

East  Africa  Protectorate  Loan  :  Repayment! 
on  account  of  Principal  and  Interest 

Cunar  1  Loan:  Repayment  on  a/c.  of  Principal 

China  Indemnity   

Temporary  Advances— Ways  &  Means  (includ- 
ing Treasury  Bills  ^345,000,000  in  r9i6-r9i7) 
Total 


Total  Receipts 

into  the 
Ex  chequer  from 
April  X,  1917,  to 

Jrm.  12,  1Q18. 

i!3. 209.947 
1.225,91a 


26,435.859 


55,642,00c 
28,818,000 
24,665,000 
6,092,000 

670,000 

88,034,000 

157,295.000 

379,000 

26,203,000 

460,000 

1,908,100 

46.848,576 


437,011,676 


463,447.535 


1,770,000 


169,818 

100,000 
68,000 


394.500 

•,178,308,000 


1,300,000 


82,248,400 
48,000 

34,500,000 

559,530,317 

166,91?, 580 
■'^236,248,000 

5,940 

130,000 
840,103,500 


4.565.2as,59^ 


£ 

35,111,063 
46.^.9*' 


35.575,006 


53,996,000 

42.595,000 

23,179,000 

5,869,000 

710,000 


70,893,000 
93.379,000 

201,000 
25,700.000 

470,000 

5.134,576 
11.908,680 


334.035.265 


359,610,271 
2,96o,oco 


210,000 

160,000 

8,824 

8,000 

74,600 

li758,655.ooo 

3.087,600 


424 
34,222,000 

84,140,469 
62, 168.806 

160,731,000 
29,878,500 
42,450,000 

199,875.038 


130,000 
400,000 

672,053.000 


3,411,123,532 


Note.— Estimate  as  in  House  of  Commons  Paper  No.  75  of  1017,  and  Sup- 
plementary Grants. 
^Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account. 


Expenditure 
and  other  issues, 


Estimate  for 

the  Year 

xgi7-i8. 

(See  note.) 


£ 

17,000,000 
194,500,000 

9,700,000 

1,695,000 

2.543,830,000 


2,766.725.000 


Expenditure. 
Permanent  Charge  of  Debt 
Interest,  &c.,  on  War  Debt 
Payments  to  Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    , 

Supply  Services    

Expenditure    

Other  Issues. 
For  A'lvaiice'5  fr.r  llnliion 
For   A(lv,.ii._t  ;    tjr    Interest    on    Exchequer 

Bonds    under    the     C  .y'n.-l     Expenditure 

<  Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903  .. 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supply 

For    Exchequer    Bonds    under    the    Capital 

Expenditure  (Money)  Act,  1904    

For  Exchequer  Bonds  under  the  Cunard  Agree- 
ment (Money)  Act,  1904 

For  War  Loans,  Exchequer  Bonds,  &c. .under 

Section  34  of  Finance  Act,  1917  

For  other  Debt  under  the  War  Loan  Acts. 

191W  to  1917 

For  Depreciation  Fund  under  the    Finance 

Act,  1917 

Old     Sinking    Fund,     1907-8,    issued    under 

Section  9  of  the  Finance  Act,  1908 
Old    Sinkin;*    Fund,     1910-11,    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  (b) 
Old  Sinking  Funds,  1911-12  and  1913-14,  issued 

under    the    Anglo -Persian    Oil    Company 

(Acquisition  of  Capital)  Act,  1914 

Cunard  Loan  Re^ayts.— Issued  to  reduce  Debt 

under  the  Cunard  Agreemt.  (Money)  Act,  1904 
Chinese    Indemnity— Issued   to  reduce    Debt 

under  the  Finance  Act,  1906 
Temporary  Advances  repaid— Ways  and  Means 

(incldg.  Treasury  Bills  ^^329, 889,000  in  1916-17) 


Total  Issues 
out  of  the  Ex- 
chequer to  meet 
payments  from 
April  I,  1917,  to 
Jan.  12.  :9i8. 


Balanofls  in  Exchequer- 
Bank  of  England 

Bank  of  Ireland 


Total . 


1918.     I      1917. 
Jan.  12.       Jan.  13. 

.  £    J     £ 

161257.478:  J5,585.4«> 
1,415,685}     1,309,060  17,673,16} 


£ 
17,006,991 
'46,983,302 

6,564,186 

'.497,931 
',937,'59-«57 


2,109,212,267 


169,818 
100,000 
95,000 


394.500 
l,552,c6S,ooo 


35,734.320 

25,490,200 


Total  Issues 
out  of  the   Ex- 
cliequer  to  meet 
payments   from 
Aprif  I,  igi6,  to 

Jan.  13, 1917. 


18,003,300 
99,863,007 

6,6^8,392 

.•,689521 
1,506,127,051  - 


1,632,291,272 


Bi  ',349.00c 


9'. 370 
210,000 

200,000 

8,008 

8,000 

98,900 

1,286,580,000 

3,087,600 


417.785 

9,65 ',957 

6g,oco 
5  3, '60 

250,000 
130,000 
400,000 
447.6ga,o 


4.547612,427    i    3,384,339,052 


26.894,480 


4,565,285,;90     I     3,411,123,532 


Memo.— Treasury  Bills  outstanding  on  Jan.  12, 1918 •£1,090,228,000 

•  Icoludes  £291,000,  the  proceeds  o{  wbicti  were  i:ot  carried  to  the  Exchequer 
witUn  the  period  af  the  account. 


With  the  price  of  rubber  back  at  about  3s.  4d.,  the 
share  market  i.s  not  very  happy,  in  spite  of  the  brilliant 
.scheme  of  the  Rubber  Growers'  Assotiation  to  restrict 
the  natural  output  next  year  by  20  per  cent.  We  may 
have  more  to  say  about  thi.s  proposal  another  time,  but 
for  the  present  shall  be  content  to  point  out  once  more 
th.-  extraordinary  commentary  it  furnishes  on  the 
claims  made  from  the  same  quarters  a  few  months  ago 
that  instead  of  having^  to  restrict  output,  we  should  he 
faced  with  a  rubber  famine  for  years  and  vears  to 
come.  The  position  is  almost  too  ridiculous  to  be  dis- 
cussed .seriously,  but  there  are  evidently  people  who 
think  differently,  and  they  say  that  it  is  high  treason 
to  suggest  that  restriction  is  intended  to  evade  partly 
the  excess  profits  duty.  Oh,  no;  it  is  to  save  freight- 
age !  Seeing  that  shipments  are  ^Iready  severely  con- 
trolled, the  argument  looks  thin  enough  to  sec  a 
maggot  through.  We  have  previously  pointed  out  that 
it  is  perfectly  legitimate  for  rubber  estates  to  "  rest  " 
their  trees  up  to  a  point,  and  if  it  happens  that  this 
should  be  desirable  just  at  the  time  excess  duty  is  most 
galling,  no  one  could  possibly  complain.  But  to  make 
a  flat  rate  reduction  of  20  per  cent,  in  the  output  and  sav 
that  it  is  patriotic  because  it  will  sa\e  .shipping  cannot 
convince  anyone  who  has  not  qualified  for  Bedlam  or 
who  has  not  some  particular  "spoof"  to  foist  on  the 
public.     Let  us  leave  it  at  that  for  the  tnoment. 

From  the  Board  of  Trade  returns  we  now  get  a  com- 
plete summary  of  the  imports  and  exports  of  rubber  for 
the  past  year,  and  the  following  compari.son  will  be 
found  of  interest : — 


1917. 

X916. 

Imports 

Exports 

Centals. 

1,756,611 

1,174,609 

582,002 

Value  £. 

23.794.635 

16,499.795 

Centals.  |  Value  £. 
1,684,895  !  22,996,141 
1.015,482    15,098,535 

Retained    

7,294,840 

599,413      7,897,606 

It  will  be  seen  that  la.st  year's  imports  show  an 
increase  of  71,716  centals  over  those  of  1916,  but 
exports  were  89,127  centals  higher,  with  the  result  that 
the  amount  retained  for  home  consumption  shows  a 
reduction  of  17,411  centals.  This  is  largely  owing  to 
the  fact  that  imports  have  been  restricted  in  recent 
months  owing  to  the  scarcity  of  tonnage,  which  does 
not  apply  in  equal  degree  to  outward  shipments.  In 
December,  for  instance,  imports  amounted  to  67,095 
centals  against  155,245  centals  in  the  corresponding 
inonth,  while  exports  were  34,200  against  67,030. 
Stocks  now  .stand  at  11,200  tons  (say,  246,000  centals) 
against  10,310  tons  last  year,  .so  that  there  i^  no  fear 
of  any  immediate  .shortage. 

A  notice  is  issued  by  the  Anglo-American  Oil  Co., 
Ltd.,  reminding  shareholders  of  the  terms  on  which  they 
can  participate  in  the  issue  of  ;^i  ,000,000  new  shares 
created  two  months  ago,  and  offered  at  the  price  of 
£j  IIS.  6d.  each.  As  the  Treasury'  will  not  allow 
holders  here  or  in  British  Dominions  to  pay  cash  at 
present  for  their  proportion  of  the  issue,  they  can  apply 
either  for  scrip  certificates,  which  will  have  to  l)e  paid 
up  subsequently,  or  for  certificates  of  rights,  which  they 
can  dispose  of  forthwith.  It  is  the  best  arrangement 
that  could  be  made  in  the  circumstances. 


Owing  to  the  restrictions  placed 
upon  paper  supplies  we  cannot 
provide  newsagents  with  copies  for 
chance  sales.  Would  regular  readers  of 
the  "  Investors'  Review,"  therefore, 
kindly  place  an  order  with  their  local 
newsagents  or  subscribe  direct  to  the 
publisher? 


January   19,   1918. 


Zbe  Jnvestors'  'Review, 


7i 


Ansv«^ers  to  Correspondents. 


*.*  A  Key  to  these  Answers  will  be  posted  early 
each  week  tor  a  subscription  of  ONE 
GUINEA  per  annum,  Its.  for  six  months,  or 
Bs.  9tt.  tor  three  months. 

Deposits  against  future  queries  may  be  lodged 
with  the  Publisher. 

A.  1).  'Z. — To  answer  usefully  will  need  a  letter.  Meantime 
your  No.  4  might  be  sold,  as  you  must  have  a  good  profit. 
Letter   next   week. 

W.  G. — (i)  These  are  a  "  very  long  shot.''  The  railway  is 
not  finished,  and  cannot  be  now  until  after  the  war.  There 
ought  to  be  opportunities  for  trade  out  there  in  the  days  to 
come.  (2)  This  concern  is  quite  in  the  background  just  now, 
but  it  is  controlled  by  a  strong  group,  who  may  revive  it  one 
day.  We  do  not  like  to  say  sell,  though  prospects  are  not 
bright   at  the  moment. 

F.  A.  E.  M. — (i)  The  company  is  doing  quite  well,  accord- 
ing to  the  latest  figures  we  have  seen.  The  fall  is  in  sympathy 
with  the  general  set-back  caused  by  the  war.  We  do  not  think 
you  should   sell. 

Fells. — (i)  Quite  speculative;  we  cannot  advise  a  purchase. 
(.;)  These  may  rise  another  shilling  or  two,  but  prospects  of 
any  big  advance  are  remote. 

Dover. — Your  better  plan  is  to  apply  tlirough  your  local 
post-office ;  it  will  save  you  time  and  trouble. 

13.  R. — We  rather  agree,  as  you  have  a  good  profit,  although 
the  proposed  amalgamation,  it  is  thought,  w'ill  put  them 
higher. 

J.  C.  D. — We  think  you  should  wait  for  the  report.  The  de- 
bentures have  been  paid  off,  so  the  preferences  are  now  the 
first  charge.  Part,  if  not  all,  of  the  overdue  dividends  seem 
possible. 

C.  E.  M. — (i)  -Must  be  doing  a  big  trade,  but  the  goodwill  still 
stands  at  a  high  figure.  The  dividends  are  well  covered,  but 
as  an  investment  we  should  prefer  (2),  which  is  also  full  of 
business.  The  financial  position  has  been  much  improved,  and 
there  is  a  separate  reserve  for  these  shares. 

F.  S.  A. — We  cannot  recommend  them. 


What    Balance    Sheets    Tell. 


PROVINCIAL    BANK    OF    IRELAND,    LTD. 

For  the  p.ist  half-year  the  gross  profits  were  ^121,850,  an 
increase  of  /,6,ooo,  and  the  nett  were  /3,ooo  higher  at  ^61,100. 
With  £3,c,ao  more  brought  in  the  available  balance  is  ;^'77,30o, 
out  of  which  the  usual  dividend  of  12J  per  cent,  per  annum  is 
paid  and  ^^25,000,  or  ^5,000  less,  is  placed  to  reserve,  but  on 
this  otcasion  j/;8,ooo  is  written  off  bank  premises,  leaving 
:  jC,  kJjOoOj  or  /■  j/>oo  more,  to  be  carried  forward.  Notes  in  cir- 
:  culation  have  expanded  ;,{.'8o,ooo  to  ^'1,718,000,  and  deposits 
have  increased  /i, 710,000  to  ;^9,i7o,ooo.  Cash  is  ;f-o,ooo 
higher  at  ;if  i ,436,000,  investments  are  up  /."6o,ooo  at  ;^2,535,ooo, 
and  advances  ;^' i ,()2o,ooo  at  /■7,i5o,ooo,  but  money  at  call  is 
^210,000  less  at  /.■622,ooo.  The  balance-sheet  total  has  in- 
creased .^'1,840,000  to  2^11,846,000. 

NATIONAL   BANK,   LTD. 

Gross  profits  for  the  half-year  amounted  to  ^221,600,  an  in- 
,  crease  of  ;if  15,000,  but  expenses  were  higher,  and  including  a 
slightly  smaller  sum  brought  in  the  balance  is  jf  7,500  up  at 
^129,870.  After  paying  the  usual  dividend  of  10  per  cent,  per 
annum  ^50,000  is  placed  to  rest  as  against  ;i{.'45,ooo  written  off 
for  depreciation  a  year  ago,  and  the  carry  forward  is  j/^2,500 
larger  at  ^f  23,620.  There  is  an  expansion  of  ;^ 54,000  in  the  note 
circulation  at  ;f2, 778,000,  and  deposit  accounts  have  increased 
four  millions  to  ^21,333,000.  Cash  is  up  jf  600,000  at 
jf  45470.000,  and  money  at  call,  &c.,  ^2,200,000  at  ^6,590,000, 
while  advances  are  ^860,000  higher  at  jj^ 7,710, 000,  and  bills 
;f  420,000  at  ;f  2,840,000.  The  balance-sheet  total  has  increased 
;^4,3oo,ooo  to  ^26,914,000. 

MUNSTER  AND    LEINSTER    BANK,    LTD. 

For  the  past  half-year  the  nett  profits  were  ^"38,960,  an  in- 
crease of  /^y,2oo,  and  with  a  trifle  more  brought  in  the  avail- 
able balance  is  ;^8,ioo  up  at  ;^S5,9o<).  The  dividend  is  raised 
from  16  per  cent,  to  17  per  cent,  per  annum,  ^^20,000  is  again 
placed  to  reserve,  ;if  5,000  (new)  is  written  off  premises,  and  the 
carry  forward  is  increased  by  _^2,3ooto  ^18,150.  Deposits  have 
risen  ;,f 2, 600.000  to  /■!  1,714,000,  and  cash  balances,  including 
Treasury  bills,  are  up  a  similar  amount  to  ^^5, 990,000.  Invest- 
ments are  ^f  140,000  lower  at  ^{^2,242,000,  but  advances  have  in- 
creased /"25o,ooo  to  ;if 3,092.000.  The  balance-sheet  total  is 
^2,700,000  up  at  /■  1 2,285,000. 

HALIFAX    COMMERCIAL    BANKING    CO.,    LTD. 

Profits  for  the  yoar  amounted  to  ^^26,260,  an  increase  of 
;f  1,500,  but  the  amount  brought  in  was  almost  as  much  smaller. 
However,  the  dividend  is  raised  from  8  per  cent,  to  9  per  cent., 


which  requires  an  additional  ^^2,000,  so  ;^8,ooo  is  placed  to 
reserves  against  ;^  10,000  written  off  for  depreciation,  and  the 
balance  to  be  carried  forward  is  a  trifle  larger  at  ;£^3,38o. 
Deposits  have  increased  ^,^'300,000  to  ^3,004,000,  and  even  the 
note  circulation  shows  an  expansion  of  2^  1,100  at  ;^2,goo  !  Cash, 
Treasury  bills,  and  investments  are  ;f  250,000  up  at  ;f  1,897,000; 
and  advances,  &c.,  have  increased  2^ 90, 000  to  ^1,400,000. 

NOTTINGHAM  AND   NOTTINGHAMSHIRE    BANKING  CO.,  LTD. 

Including  ^^2,000  more  brought  in  the  balance  is  ^^3,000 
higher  at  ^^52,820.  The  dividend  of  11  per  cent,  for  the  year 
is  repeated,  and  jf  7,000  against  ^^'5,000  is  written  off  premises, 
leaving  '^1,000  more  at  ;^'6,22o  to  be  carried  forward.  Deposits 
have  increased  ^£^440,000  to  ^5,690,000,  but  the  note  circulation 
has  fallen  ^4,000  to  ^^25,200.  Cash  and  Treasury  bills  are 
j^227,ooo  higher  at  two  millions,  and  advances  ^^190,000  at 
;^3, 180,000,  but  investments  have  fallen  ^25,000  to  ^^890,000. 

LODERS  AND  NUCOLINE,  LTD. 

After  providing  for  excess  duty  and  munitions  levy  the  nett 
profits  for  the  year  to  August  31  were  jf  23,640,  which  shows  a 
reduction  of  ^^4,000  as  compared  with  the  previous  twelve 
months.  The  amount  brought  in  also  was  about  ;^  1,000  smaller, 
but  the  directors  feel  justified  in  repeating  the  dividend  of  20 
per  cent.,  and  as  nothing  is  placed  to  reserve,  against  .^5,000 
last  time,  the  carry  forward  is  practically  the  same  at  £s<°4$- 
It  is  explained  that  the  revaluation  of  the  Silvertown  plant 
showed  that  the  .^9,300  reserved  out  of  profits  for  depreciation 
is  no  longer  necessary,  and  this  amount  has  therefore  been 
transferred  to  the  general  reserve,  which  now  amounts  _  to 
^46,300.  During  the  year  ;,f23,ooo  has  been  spent  on  capital 
account,  and  the  financial  position  is  not  quite  sc  liquid,  but 
everything  look*  healthy  enough. 


COMPANY  MEETING. 


FREDERICK    HOTELS. 

The  nineteenth  ordinary  general  meeting  of  the  Frederick 
Hotels,  Ltd.,  was  held  on  Tuesday  at  the  Hotel  Russell,  Russell 
Square,  W.C,  Mr.  Arthur  Bird,  J. P.  (the  chairman),  presiding. 

The  Secretary  (Mr.  A.  Macmurchy)  read  the  notice  convening 
the  meeting  and  the  report  of  the  auditors. 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  explained  that  the  compensation  awarded  to  the  com- 
pany for  the  military  occupation  of  the  Hotel  Great  Central  was 
less  than  the  sum  claimed.  He  did  not  conceal  the  fact  that  the 
directors  were  disappointed  at  the  amount,  but  as  loyal  subjects 
they,  of  course,  accepted  the  finding  of  a  tribunal  composed  of 
gentlemen  of  high  standing.  With  regard  to  the  refreshment 
rooms  at  Folkestone,  the  Commissioners  awarded  the  full  amount 
of  the  company's  claim,  but  as  the  lease  of  the  refreshment  rooms 
expired  at  Christmas  last  payment  was  only  awarded  up  to  that 
date.  This  was  a  decided  hardship,  as  they  had  been  caterers 
at  these  refreshment  rooms  since  the  formation  of  the  company. 
The  result  of  the  year's  trading  was  a  nett  profit,  after  payinent 
of  debenture  interest,  of  ^^'32,498,  against  ;f  1,177  in  the  previous 
year,  an  increase  of  ^^31,321— a  result  which  the  directors  ven- 
tured to  think  the  shareholders  would  consider  satisfactory  in 
view  of  the  very  difficult  conditions  and  the  high  costs  of  all 
foodstuffs.  With  the  balance  of  £23,72$  brought  forward  from 
the  preceding  year  there  was  an  available  balance  of  ^f  56,223. 
On  November  10  last  the  directors  paid  one  half-year's  prefer- 
ence dividend  up  to  June  30,  191^,  and  they  now  proposed, 
subject  to  the  confirmation  of  the  meeting,  to  pay  on  January  31 
another  half-year's  dividend  up  to  December  31,,  1915,  leaving 
the  substantial  balance  of  ^28,723  to  be  carried  forward  to  the 
current  year's  account.  With  regard  to  the  balance-sheet,  stocks 
and  debtor  balances  and  sundry  creditors  showed  an  increase 
over  the  previous  year,  but  this  was  due  to  the  increased  busi- 
ness done.  Cash  in  hand  at  June  30  also  showed  an  increase  of 
^22,687.  For  the  c'urrent  financial  year  the  business  of  the 
hotels  was  proceeding  satisfactorily.  They  again  had  an  excel- 
lent season  at  the  Hotel  Majestic,  Harrogate,  at  the  Sackville 
Hotel,  Bexhill-on-Sea,  and  at  the  Hotel  Burlington,  Dover,  and 
had  also  continued  to  do  satisfactory  business  at  the  Hotel 
Russell.  The  business  at  Folkestone  and  Whitby  was  still  ad- 
versely affected  by  the  war  conditions,  and  the  board  were  afraid 
there  would  be  no  improvement  during  the  war.  Although  the 
directors  did  not  like  prophesying,  they  were  oT  opinion  that  the 
results  of  the  company's  trading  up  to  December  31,  1917,  justi- 
fied them  in  paying  still  another  half-year's  dividend  on  the 
preference  shares,  which  would  take  them  up  to  June  30,  1916, 
and  warrants  for  a  full  year's  oreference  dividend  would,  there- 
fore, be  posted  to  the  shareholders  on  January  31. 

Sir  John  H.  Bethell,  Bart.,  M.P.,  seconded  the  motion,  which 
was  carried  unanimously. 


Copies  of  THE  INVESTORS'   REVIEW  can 
be  obtained  in  Paris  at 

Messrs.  W.  H.  Smith  &  Son's, 
248,  Rue  de  Rivoli. 


74 


Zbe  5tive8tot8'  IRevtew. 


January  19,   igi8. 


DECEMBER 

RUBBER   OUTPUTS. 

company. 

Current 
Estimate. 

LastAll- 
in  Cost 

Dec, 
lbs. 

(■f)or(-) 
lbs. 

1 

Aggregate 

(-^)or(-) 
lbs. 

Aboyne  Clyde 

444-374« 

1/0.50 

54,398 

+     8,534 

6 

276,304 

+     49,866 

Allagar 

360,000 

1/1.62 

28,500 

—    4,500 

12 

338.100 

+     38,000 

AUlance 

163,716^ 

— 

37,357 

+     8,089 

12 

208,394 

4-      39,281 

Alor     Pongsu 

275.000 

1/0.75 

27,544 

+     1,406 

13 

276,412 

+      16,333 

Ampat 

ifio.ooo 

1/1.35 

17,650 

—     1,510 

3 

56.050 

+        2,990 

Anglo-Java  .. 

2,62<1,00J 

271.939 

+    96,539 

12 

2.525.395 

4-    880,675 

Anglo- Johore 

300,000 

1/320 

23,316 

+    10,100 

9 

231,596 

4-      36,083 

Anglo  -  Malay 

1,720,000 

/11.23 

165,004 

+      1,210 

12 

1,710,143 

-     52,388 

Anglo-Sum. . . 

940,000 

/103 

68,533 

—   17,600' 

7 

S11.166 

—     49,537 

Asfiian 

55o,coo 

1/3.36 

39,578 

-     2.937 

3 

196,829 

4-        9,716 

As.  T.Ceylon 

25  5, coo 

— 

31,563 

+      1.357 

6 

145.677 

4-      15,698 

Ayer  Kumng  . 

721,457« 

1/0.34 

78.500 

—     8,500 

12 

824,071 

+      99.614 

Bagan  Serai.. 
Bah  Lias  .... 

417.000 

/11.8J 

35,500 

—     4,212 

12 

413.182 

+      50,39* 

1/9.46 

56,099 

-f    40,181 

2 

103,766 

+      74.113 

Baioe  Kidoel. 

230,986a 

1/8.85 

50,000 

+   24,152 

9 

278,000 

-f    116,171 

Bakap 

285,000 

19,200 

—     9,700 

6 

lo6,6co 

—     55.90O 

Bambrakelly . 

235.0.0 

1/4.96 

29.542 

—     3,181 

9 

181,199 

4-        3,025 

Bandar   Sum. 
Bandjar^arie  . 

395.450rt 

40,080 

+     3,376 

5 

196,67s 

+      31.279 

259.000 

1/2.48 

20,350 

—     2,285 

12 

243,019 

-       I.37« 

Bandarapola  . 

250,000 

30,600 

+      1,992 

12 

284,600 

+      68,993 

Bantardawa. . 

340,  oor) 

— 

29,202 

+     2,202 

6 

156,500 

4-      27,540 

Bantam 

915.000 

t/t.65 

77.079 

+    12,580 

6 

464,591 

4-      69,923 

Banteng 
Batak  Rablt.. 

434.000 

I/-.37 

40,220 

-        380 

( 

284,640 

+      27,400 

440,oco 

J/1.64 

24,500 

—     7,054 

6 

202,248 

+      24,418 

Batang  Mai.. 

400,000 

1/3 

30,829 

—     3,471 

12 

318,122 

4-      31,639 

Batu  Caves  . . 

6()7,8igfl 

/913 

61,336 

-  18,388 

12 

777,995 

4-      55.24' 

„     Matang . 

185,000 

19,833 

+     2,854 

6 

98,243 

+      15.326 

,,    Rata     .. 

493,030* 

1/1.50 

54.580 

+     5.180 

6 

277,200 

4-      21,780 

„     Tiga     ., 

1/0.45 

'64,000 

—     6,300 

11 

693,500 

4-      10,036 

Be'uf'rlB'rn'd 

236,oorfl 

1/5-75 

19,000 

— 

8 

135,000 

—     24,500 

Bekoh 

540,000 

36,283 

—   14.517 

6 

351.085 

4-      20,785 

Beranang 

294,168a 

1/5-9 

29,911 

+        980 

6 

'69,530 

+      17.54' 

Bernam-Per'k 

300,000 

21,150 

—     5,650 

6 

133.450 

—       8,050 

Bidoc . . 

419.500a 

1/1-83 

40,500 

+     3,350 

9 

363,200 

+      56,5i9 

Bikam 

420,000 

1/3.62 

30,300 

—        100 

12 

373,033 

-      15.5«8 

Bode  .. 

273.000 

1/5-22 

23.951 

+     2,881 

12 

364,930 

+      67,389 

Bradwall      . . 

480,000 

1/2.58 

43.975 

-     1,863 

12 

443,143 

+      23,514 

Braunston    . . 
Btit  BornPara 

5co,ooo 

/II.80 

46,371 

+      1,371 

3 

136,371 

4-      18,171 

220, OOD 

I/I 

22,000 

—     1,270 

8 

141,880 

—     33.99O 

British  Malay 

750,000 

73,000 

+    22,003 

12 

718,388 

4-    407.53° 

Brooklands  . . 

620,000 

1/2.5 

62,40 

—        332 

6 

334,140 

+      40.452 

Broome 
Bruas-Perak  . 

450,000 

1/4-42 

34,424 

—     1,004 

6 

199,524 

—        2,II4 

111,000 

1/6.47 

11,1+3 

+     4,923 

10 

90,470 

+      50,944 

BukitCloh  .. 

260,000 

1/0.38 

32,000 

■1-     3,000 

12 

229,000 

—     32,500 

„    liok    .. 
„    Kajang. 

340,000 

1/1-57 

28,500 

+     3,000 

12 

304,500 

—       2,500 

940,000 

— 

100,000 

+    10,000 

6 

509,868 

4-        9.018 

,,     Lintang 

280,000 

1/2  .73 

25,600 

-t-     5,600 

6 

130,120 

—      16,980 

,,     Mert'jm 

932,000 

/JO.74 

86,673 

+     6,078 

9 

638,885 

4-      59.676 

„    Panj'ng 

525,000 

1/0.45 

64,000 

-1-    20,000 

12 

536,900 

4-      49,800 

„    Rajah.  . 

1,071,000 

/11.20 

95,'97 

—     5.233 

9 

723,787 

—     46,020 

,,     Semba,. 

800,000 

1/317 

63,200 

—  13.931 

12 

751,860 

+      18,078 

Carey  Unjted 
Castlefield    .. 
Cent.  Trav... 

322,275fl 

— 

45.749 

-I-    15,500 

3 

120,399 

+      32,310 

680,000 

— 

51,409 

-     2,238 

8 

310,610 

+      34,498 

280,000 

1/2-3) 

29,728 

—     5,272 

12 

230,275 

+        1.767 

Ceylon     Para 
CeylonT.4R. 

970,000 

114,619 

■1-      7.366 

12 

1,053,584 

4-    194,489 

— 

1/4-31 

31.058 

+      3,428 

12 

235.031 

+        3,855 

Changkat^Sal. 
Chemb  Malay 

925,000 

1/0.47 

103,000 

+    26,000 

12 

1,013,000 

4-    118,000 

440,000 

1/1-37 

38,491 

—     3,401 

12 

457,102 

4-      39-346 

Cberai  ..     .. 
tiJieisoDaie . . 
Cbivlot . .    . . 

264,000 

1/3-39 

29,500 

•(•     8,100 

12 

284.300 

4-    103,800 

750,000 

/10.58 

61,509 

—     6,608 

12 

6I9,6S9 

4-        3,780 

610, coo 

1/3-24 

45.860 

+     1,170 

12 

591,140 

+    106,560 

Cniinpul 

350,000 

1/6.9 

23.963 

—     3,042 

6 

139,667 

4-      21,671 

C*ote    ..     .. 

330,000(1 

— 

20,518 

■1-           52 

12 

228,515 

+      13.09S 

CJCely    ..    .. 

400,000 

/n.44 

36.482 

+   5,482 

9 

308,463 

4-      40.S99 

Cluny     . .     . . 

265,000 

1/2.54 

19.551 

—      818 

12 

244,892 

4-      19,882 

Cons.    Malay 

900,550 

too, 600 

-^  20,598 

12 

917,590 

4-    103,791 

Palkeith 

475,000 

1/4-78 

*5o,ooo 

—    8,000 

11 

394,500 

+      34, .300 

Damansara  . . 

830,000 

/11-05 

67,327 

-  10,483 

12 

847,205 

+      61,834 

Dangan..     .. 

225,000 

— 

29.894 

+    6,877 

6 

139,(46 

4-      40,933 

P^nniBtown.. 

656,000 

— 

57.600 

—    4,619 

12 

580,671 

—     14,013 

Devlturai      . . 

340,000 

1/1.90 

52.150 

299 

12 

345,670 

+      32,250 

Dimbula 

340,700a 

/10.36 

42,080 

—    8,500 

12 

282,858 

—     57,882 

Djasinga       . . 

433.554« 

1/7-39 

51,000 

+  22,117 

6 

274,000 

4-    107,117 

Djember 

250,000 

— 

31,000 

+    12,000 

12 

366,700 

4-      97,900 

Doranakande. 

215,000 

1/4-47 

2g,l0O 

—            103 

13 

205,597 

4-      18,955 

Duff  Develop. 

400,4000 

1/7.40 

62, coo 

4-    13.958 

12 

804,470 

4-    206,938 

Dusun  Durian 

820,000 

/10.7I 

74,442 

+          79 

12 

790,371 

4-      58,100 

E.Ind.&Cey. 

210,000 

1/1.15 

*2I,0O0 

—     6,134 

II 

174.310 

4-      14.550 

Edinburgh   . . 

465,000 

/9-14 

37,000 

-     6,coo 

12 

447,550 

4-      10,550 

Elphil    ..     .. 

252,000 

1/5-88 

•17,130 

—     1.973 

11 

216,881 

4-      51,604 

Emerald 

377,700rt 

1/2 

57,400 

+    15.900 

11 

502,200 

4-    167,000 

E<Jw  Seng    . . 

185,000 

— 

•   15,200 

■f            6 

12 

172.450 

4-      13.048 

Eficot     . .     . . 

244,520rt 

1/2.32 

18,000 

-        400 

3 

52,574 

—       1,446 

Fed.  Malays. 

1,845,000a 

1/9-50 

174,000 

■H      6,000 

7 

1,165,000 

4-      58.000 

Fed.  Selangor 

370,000 

/11.68 

36.445 

+     5.399 

9 

305.489 

4-      38,546 

Galaba  ..     .. 

143,500 

— 

21,337 

+     3,928 

12 

125,583 

+        5,993 

Galang  Besar 

450,000 

— 

41.700 

—     1,900 

6 

254.110 

4-      39,860 

Gan  Kee 

200,000 

— 

17,980 

+      1.928 

6 

92,280 

4-        5.743 

Garing  . .     . . 

I9;,683rt 

1/1-99 

24.500 

+     8,400 

3 

64,166 

4-      17.766 

Gedong  . .     . . 
Gen.  Ceylon  . 

277,508a 

1/1-75 

26,182 

■t-     7.111 

2 

50,374 

+      11.334 

1,012,000 

I/I.27 

134.446 

•H    14.258 

13 

1,085,000 

+    1*3.037 

Glen  Bervie.. 

375,4c6a 

— 

24.474 

+      5,414 

3 

83.927 

4-      19.872 

Glendon..     .. 

343,000a 

— 

26,309 

-        518 

3 

68,203 

-       8-34'i 

Glenshiel      .. 

458. 5C0 

1/2.18 

40,490 

i-      1,438 

12 

488,949 

4-    108,395 

Golconda 

594,000 

/11.36 

49.428 

—     6,505 

12 

596.104 

4-      11,149 

Golden  Hope 

305,000 

1/1.41 

36,182 

+      8,460 

12 

352,025 

4-      83,739 

Grand  Cent., 

4,i37,S6ia 

1/0.72 

559.640 

-  69,887 

12 

4.759.405 

4-    621,544 

Gula   Kal'p'g. 

1,370,000 

/11.2 

117.585 

-    15.063 

13 

1.333.328 

4-    137.369 

Harpenden  . . 

568,000 

/11-49 

39.7^0 

—     4,400 

12 

511.101 

—           209 

Hayoep..     .. 

520,000 

46,479 

4-      2,816 

12 

512.405 

4-     22,024 

Heawood     . . 

275.000 

l/l.'i 

32.124 

-1-      8,620 

12 

274,512 

4-      66,102 

Hewagam     . . 

646,2oon 

1/2.80 

'07.125 

4-    32,125 

12 

688,737 

+     44.047 

Hid.  Streams 
Highlands    .. 

240,000 

— 

19.500 

—     5,000 

12 

243,739 

+        2,55, 

1,353.000 

l/o.Ol 

143.704 

f         810      12 

1,436,518 

+       to.loK 

Inch-Kenneth 
Insulinde 

440,000 
330,000 

1/3-71 

40,940 
•24.300 

+      2,040        7 
4-     2,800       5 

285,230     -(•      25,9^0 
116,900     +      17,540 

Java  Amal.  .. 

a\-a  R  &  Prod 

,  ava  Para     . . 

315.000a 
620,000 

z 

*7i,aoo 
31,800 

4-    17,000 

+      3,8oo 

II 
12 

590,300 

4-    113,130 

265,692a 

I/I.20 

"^50,000 

+    20,043 

II 





Jeratn     . .     . . 
Johore  Para. . 
„    Rub.  Ldi^ 
Jong    Landor 
Jugra     Estate 

300,000 
190,362a 

l/2~.4 

29,989 
19,000 

+      3,458 
4-         400 

i 

180,139 
104,400 

—      21,022 
4-        9,76s 

1,268,000 
680,000 
378,613 

1/34 
1/0.50 

125,547 
57,542 
40,740 

+    34,546 
—        987 
+      2,361 

12 
6 
9 

1,174,348 
325,513 
304.412 

+    500,793 
—     18,268 
4-      27,166 

Jugra  Land  .. 
Juru  Estates.. 

1,398,000 
200,000 

/10.02 
1/1.88 

136,170 
16,500 

+      9.053 

•^     1.430 

8 
9 

831,966 
134.300 

4-      61,844 
+      15.924 

Kaiang  ..     .. 
KaliGlagah.. 
Kamp  Kua't'n 

263,709fl 
350,000 
360,000 

1/1-95 
1/2.07 

36,430 
23,222 
33,000 

+     5.730 

4-      4.3" 
—        500 

12 

» 

12 

391,000 
159.157 
361.500 

4-    127,221 
4-      21,657 
4-     io,3ce 

Kamuning    .. 
Kapar  Para  . . 

8  c  0,000 

1/1.49 

100,360 

■1-      4, 79  J 

6 

438.090 

—     44,470 

954,000 

/10.91 

113,717 

+    22.133 

12 

1.075.138 

4-    254,939 

Karak     . .     . . 

220,000 

— 

19,894 

—      6,310    1    13 

241,019 

4-      33.611 

Kasintoe 

400,000 

i/«.}6 

43,»oo 

+       6,899! 

»  1 

582,075 

+    301, 9 J6 

K 


Kawifi  Java  . . 
KepitJgalla    .. 
Kepong    .     , . 
Kerala    . .     . . 
KhotaTamp'n 
Killinghall    .. 
Kimanis 
KintaKellas.. 
Klabang. .     . . 
Klanang 
Kombok 
Kuala     Klaog 

„     Kubu.. 

,,    Lumpur 

,,      Nal 

„  Pahi 
Selangor 
urau  . .  . , 
Labu  ..  ., 
Lanadron 
Langat  River 
Langon,  Java 
Lnngkat  Sumi 
L'Dffk'n  N.Br. 
Ledbury  , , 
Lendu  ..  .. 
Linggi  ..  .. 
Lochnagar  . . 
Lon.  Asiatic. 
Lumut   ..     .. 

Madingloy 

Maiedie. 

Manawale 

Malacca 

Malayalam 

Malaysia 

Malay  Pl'nfrs 

Manch'rN.B 

Membakut   . . 

MerguiCrown 

Merllmau 

Mpnerakelle 

Mount  Austin 

Nagolle..     .. 

Nattiorough.. 

NebqdaCey.. 

N'wp-oc.Riv. 

Noroanal 

N.  Bonseo  St. 

N.  Hummock 

N.  Labis      . 

Oriental 
Padangjawa 
Panawatte    . 
Panagula 
Pantiya . .     . 
Parambe 
Pataling 
Pegoh     . .     . 
PelmaduUa  . 
Perak     . .     . 
Fermas  . .     . 
Pllmoor. .     . 
Port   Dickson 
P.P.K. 


500,000 

— 

640,000 

— 

335.000 

— 

250,000 

— 

»oi,oooa 

1/3-30 

344.000 

420,000 

1/9-22 

610,000 

— 

315,000 

1/4-30 

505.125 

1/1.02 

594.000 

/11.88 

197,448a 

/10.39 

138,950 

1,700,000 

1/2.34 

187,80011 

1/3.36 

200,000 

— 

650,000 

/9-3 

330,000 

/11-75 

762,000 

/11.80 

1,610,000 

1/4-05 

773,710a 

1/3-93 

520,000 

1/4-33 

290,000 

l/3i 

765,000 

/1I-74 

235,000 

— 

2,495,000 

1/0.50 

160,000 

— 

1,431,000 

1/3.24 

— 

/I1-54 

Preanger 
Prye 


198,000 

1/2.52 

170,143 

i/n.62 

320,000 

— 

4,000,000 

1/3.11 

1.345. 182 

1/4-67 

400,000 

1/3-48 

337.366a 

1/3-03 

616,000 

488.000A 

1/3 

545,000 

— 

1,620,000 

— 

155,000 

1/632 

2,200,000 

1/4-3 

540,000 

1/1-43 

278,100a 

1/5-8 

460,000 

560,000 

— 

700,000 

1/1.79 

149,250a 

— 

750,000 

i/r.41 

350,000 

1/7-05 

720,000 

1/3.30 

219,024a 

— 

41*5, 187a 

— 

290,000 

1/3.807 

200,000 

— 

240,000 

— 

665,000 

/10.13 

706,492a 

747,000 

— 

530,000 

/1 1-38 

— 

1/5-5 

353.300a 

1/1-41 

700,000 

1/4-85 

304,So6a 

/11-89 

S29,242a 

— 

310,000 

— 

Rani  Travan.. 

879,544" 

Ratanui..     .. 

310,183a 

Rangoon  Para 

320,000 

Kembia  . ,     . . 

397,9263 

Ribu       . .     . . 

185,013a 

Rim       ..     .. 

400,000 

Riverside      . . 

490,000 

Rubana  . .     . . 

850,000a 

R.  Es.  Ceylon 
R.  Es.  Johore 

500,000 

750,000 

R.  Es.  Krian.. 

416,947a 

Rubber  Trust 

380,000 

Sagga     . .     . . 

502,500.1 

Sampang  Java 

136,300a 

Sapong  . .     . . 

343,000a 

Sapulm'k'nde 

450,000 

St.  G»<jrge  . . 

500,000 

Scot.  Malay.. 

630,000 

Seafield..     .. 

950,000 

Seaport..     .. 

435,000 

Sedenak 

550,913a 

Segamat 
Sekong  . .     . . 

450,000 

162,153 

Selaba   ..     .. 

865,000 

Selangor 

730,000 

Eiv. 

750,000 

Utd 

220,000 

Seletar..     .. 

210,000 

Sembilan 

55»i200 

Sempah..     .. 
Sendayan      . . 

325,000 

417,470a 

Sengat    . .     . . 

515,000 

Sennah  . .     . . 

1,700,000 

Serdang  Cent. 

37a,oco 

Seremban     . . 

712,000 

Shelford       . . 

170,000 

Siak        ..     .. 

3I0,0«O 

Sialang  . .     . . 

— 

Sing.  Para   . . 

675,000 

United. 

515,000 

Straits  Rub... 

1,600,000 

S.S.  Bertam. 

1,350,000 

Strathmore  . . 

436,000 

SumatraCons. 

680,000 

„       Para 

729,000a 

,,       Prop. 

235,600 

Sungcl  Babru 

362,000 

,,    Baiu  . 

300,000 

,,    Buaya 

501,010a 

,,    Bulob 

600,000 

„    Choh. 

„     Kapar. 

815,000 

,.    Kari.. 

360,000 

„     Krian . 

700,000 

,,     Ktuit  . 

— 

..    Mt'ng 

357,000 

,,    Purun. 

315.000 

„    Salak. 

68o,ojo 

,,    Siput . 

190,000 

„     Way.. 

510,000 

Sung.Chumor 

36»,ooo 

Sunnyguna.. 

950,800 

1/3-34 

<8.69o 
1/3-30 
/11-57 
1/0-64 

1/0.90 
1/6.17 
1/6.10 

1/2.82 

1/6 

1/0.38 

1/7-33 

/10.50 
/1I-59 
1/1.53 

1/1.185 

1/8.8 

.1/3.75 

/9-53 

/9.91 

1/3-17 

l/4i 

1/0.42 
1/0.80 
1/3JS 

/loj 

/II.53 

I/I-76 

1/1-77 
1/0.84 

/II.12 
1/0.89 
/9.18 
/tl.85 
I/I36 
1/4.12 

1/3-50 
1/1.62 
/10.75 
1/3.85 
/IO.069 

/lO.Jl 

1/0.5 

/ii.So 

1/4.14 

1/0.97 

1/ 

1/0.18 

1/3-34 


44.343 
60,650 
31,000 

♦38.878 
34,000 
30,098 
43,800 
50,500 
27.526 
54.092 

•50,000 
16,180 
12,700 

156,430 
30,000 

•25,742 
54.756 
36,000 
76,020 

127.346 
35.249 
74,000 
49.501 

•24,500 
52.917 
19.387 

246,300 
18.929 

133.294 
96,800 

16,249 
16,064 
44,198 

395,000 

188,626 
31.149 
31.229 
53.905 
33.000 
86,000 

188,783 
18,700 

195.800 
71.143 
25,000 
61,000 
57,620 
57.205 
13,500 
61,825 
31,730 
68,000 
27.594 
85,575 
56,135 
24.302 
28,313 
7I1O30 
68,349 

104,727 
49.105 
13.230 
34.030 
68,540 
57.493 
28.274 
28,650 


4-  a.oaj 
—     I.4»9 

9 
9 

— 

12 

+    3.500 

II 

+      350 

11 

—    1,087 

6 

4-    10,800 

12 

r      2,504 

9 

+       1.057 

12 

+    14.560 

13 

4-      1,470 

9 

-         295 

3 

—      1,800 

b 

4-      6,930 

6 

4-    16,000 

13 

4-    10,800 

SI 

+  4,378 
-     4.892 

11 

12 

4-    11,020 

13 

—  4.003 
4-      8,815 

13 

13 

—     1.149 

4 

+     6.334 

11 

—        500 

8 

-  12,885 

13 

-     3.113 

9 

4-      3.675 

13 

+      3.685 

13 

—  14J34 
4-      3T300 

12 

3 

2,828 
1,802 
5,813 

12,600 

38,554 
4,625 

543 
18,463 
2,500 
19,000 
53,301 
1.864 
41.860 
11,863 
2,000 
8.740 
2,360 
6.756 

-  15.500 
4-  531 
4-    12,169 

4-  6,523 

4-  6,760 

+  15.232 

4-  7.834 

-  1.433 
4-  263 
4-  S.491 

-  2.615 
4-  3.340 

-  690 

-  350 
4-  1,300 
4-  12,180 
4  5,345 

-  3.990 
+      4,820 


390,089 
402,362 
334.500 
249.294 
311,000 

161. 8}4 
390,000 
421.554 
301,412 

301.010 
431,100 
48.180 
71,988 
930,600 
177,000 
307,818 

630,994 
283.300 
867,810 
1.401,373 
343.318 

300,000 

447,983 

153.000 

691.496 

158,139 

1,535.010 

151.981 

1,560,193 
198,100 

161,933 
78.619 
312.077 

4,043,800 

1.354.179 

426,756 

88,268 

399.800 

399,010 
1,470,236 

115.534 
1.657,607 

573.750 

158,000 

315,000 
625,030 
624.364 

213,50a 

365.648 
200.574 

716.450 

203,616 
617,309 

331,346 

206,100 

253.842 

729,633 

•19.471 
843.197 

418,050 
131,910 
194.430 
318,170 
348,338 
147.676 

191,920 


95.530 

-   31.311 

10 

'^% 

35,760 

-     1.345 

3 

57.770 

4    14,430 

13 

360,360 

4 '.758 

+      2,851 

3 

I09.S53 

36,088 

+      4,672 

13 

296,873 

41.000 

■1-    12,500 

9 

308,100 

40,500 

f      2,830 

13 

372,000 

78,000 

4-    17.361 

8 

543.204 

53,573 

—     4.3fO 

12 

472,004 

51,559 

-    16,401 

12 

677,311 

44,200 

+      1.256 

12 

461,50c 

67.035 

+    33.263 

12 

530,413 

39.500 

4- 

12,500 

5 

231,000 

186,046 

+ 

49.745 

12 

— 

33,000 

4- 

1.795 

12 

338,000 

69,055 

4- 

12,940 

11 

505,427 

67,951 

4- 

9,444 

11 

533,471 

58,000 

— 

1,000 

11 

614,000 

io7,coo 

— 

3.070 

11 

1,040,515 

35.903 

— 

4.242 

6 

226,095 

57,625 

■^ 

11,635 

2 

109.565 

43,050 

+ 

10,000 

11 

420,120  ! 

15,400 

+ 

no 

5 

78,676 

58,348 

— 

1.849 

12 

658,256 

71,529 

— 

9,090 

11 

818,093 

70,000 

— 

4,870 

13 

695.313 

32,430 

^ 

4,420 

9 

172.360 

16,520 



995 

5 

93.510 

49,031 

+ 

549. 

7.187^ 

5 

222,257 

21,832 

— 

9 

191,610 

•48,320 

+ 

11,420 

2 

90,380 

52.350 

4- 

13.050 

6 

277,137 

145.089 

4- 

25.649 

6 

870,809 

31.389 

— 

1.129 

11 

355,535 

103,535 

f 

18,848 

11 

974,750 

25.265 

•I- 

338 

13 

278,326 

•19.475 

— 

5.556 

II 

248,553 

114.382 

+ 

7.860 

11 

1,239,983 

54.900 

— 

7.936 

6 

316.253 

44.000 

4- 

5.333 

6 

243.5CO 

228,000 

~ 

38,355 

13 

2,890,911 

131,000 

+ 

19,000 

9 

30,818 

— 

11,182 

12 

430,446 

63,000 

4- 

7,000 

8 

464.390 

85,000 

4- 

ao,i4o 

6 

473,630 

32,500 

4- 

6,800 

8 

•71,180 

33.039 

4- 

6.189 

6 

166,461 

34.200 

^ 

7.350 

13 

286,150 

45.570 

+ 

1,990 

5 

285,440 

53,900 

— 

4,100 

12 

615,000 

58.076 

+ 

18,631 

12 

552.965 
«44,700 

80,500 
27.880 

— 

1,300 

12 

— 

6,320 

6 

188,640 

53.916 

— 

13,681 

11 

618,492 

38,220 

4- 

2,570 

11 

439,700 

'8,154 

— 

233 

11 

304.813 

16,000 

4- 

4,458 

12 

307,993 

67,300 

— • 

1^ 

11 

737,300 

19,700 

4- 

6 

99,000 

31,161 

— 

2,890 

12 

5*5,373 

47.000 

— 

3,000 

6 

258,500 

112.871 

-^ 

8,406 

12 

9*4,610 

JANUAKV     ly,     1918., 


TTbe  Jnveetocs'  "Revte^^ 


75 


Taiping. .     . . 

675.000 

/1O.88 

TaliAyer     .. 

1,080,000 

1/0.25 

Tamiang 

777,2I3« 

Tangsa    Batu 

180,000 

1/3,59 

Tangkah 

530,000 

1/6.4I 

Tanj.    Malini. 

1,400,000 

1/5.50 

Taadjong     . , 

1,595,000 

./3.18 

Tangoel 

308,000 

I/Ii 

Tobrau  . .     . . 

1,046,480 

1/10.70  1 

Teekoy  . .     . . 

250,000 

I/5.U    I 

Tclogoredjo  , 

1,200,000 

1 

TanomB'rneo 

690,000 

/It  98 

Third  Mile  . . 

280,000 

Treiaelbye  . . 

750,000 

1/0.54    i 

Trolak  ..     ., 

332,040n 

l/2i         i 

Ulu  Rantau.. 

250,000 

j/1.16 

U.  SuaBateng 

900,000 

1/1.15 

U.  Serdang  . . 

3,265,8j9« 

1/0.60 

U.  Sumatra.. 

967,500 

1/0.73 

U.  Temiang. . 

801,080 

1/5.80 

Uva        . .     . . 

189,833a 

Val  d'Or 

3 14,  toon 

— 

Victoria 

250,000 

1/4-49 

Windsor 

320,0«O 

1/4. 10 

Woodend     . . 

220,000 

Yam  Seng    . . 

403,363* 

— 

Yatiyantota  . . 

490,000 

—      1 

56,281 

_ 

10,933 

.3 

85,000 

— 

25,653 

8 

69,395 

+ 

15.394 

3 

16,793 

+ 

693 

12 

53,29' 

+ 

15,223 

.1 

134,540 

+ 

33,660 

b 

103,047 

— 

22,. -52 

39,930 

b 

66,657 

— 

19,400 

6 

33,488 

— 

31.226 

5 

87,000 

+ 

32,000 

12 

51,700 

+ 

2,950 

12 

28,000 

— 

2,481 

12 

70,000 

f 

500 

6 

30,970 

+ 

1,721 

3 

26,422 

— 

3,678 

12 

87.546 

— 

1,360 

12 

254,006 

— 

45,273 

4 

85,620 

+ 

2.050 

12 

♦70,260 

+ 

17,570 

4 

21,331 

+ 

4,530 

II 

24,300 

— 

7,000 

2 

28,700 

+ 

10,400 

6 

37,000  ,4-  5,400 

32,345  1+  6,499 

39,652  ]+  4,214 

66,894  1+  2,068 


156,403 
667,751 
226,947 
172,569 
139,291 
754,380 
653,3'9 
145,457 
382,902 
155,616 
854,020 
599,800 
198,835 
328,200 
86,320 

285,066 
930,724 
1,040,970 
991,700 
276,600 
164,361 
47,400 
145,342 
12  j  404,200 
12  I  256,7,-2 
12   !         68,437 

12  !  520,833 


—  37,456 

—  21,786 
+  59,153 
+  12,269 

+   26,353 

+  196,020 

—  63,040 
+  21,655 

—  167,096 

—  I4,I!6 
+  467,452 
4-   28,400 

—  2l9,yS6 

—  41,800 
+   2,085 

18,199 
127,585 
108,585 
157,000 

80,390 
8,671 

1,1,700 

61,342 

129,340 
+   68,721 

—  3,331 
+   75,479 


POREIfiW  RAILWAYS. 


+ 


a  Last  year's  crop. 


*  For  November,  or  previous  month. 


INDIAN  RAILWAYS. 

IK 

GROSS  TRAFFIC  FOR  WEEK. 

GROSS  TRAFFIC  TO  DATE 

^^B        NAUK. 

«,„,.      1 

In.  or  dec 

«i 

In.  or  dec. 

'^                            i   endTng    |    An>°""' 

on  last 
year. 

k 

Amount 

on  last 
year. 

Rs. 

Rs.       1 

Rs. 

Rs. 

Assam  Bengal 

Nov 

s 

1.23,535 

—    28,726 

5,94,789 

—    1,07,494 

Barsi 

24 

26,900 

—      6,800 

5,38,100 

—    i,59,coo 

Bengali  N.-W.     .. 

17 

3,25.220 

—  1,50,461 

21,96,620 

-    4,39,188 

Bengal  Nagpar 

24 

9,85,000 

+       8,000 

3,45,31,358 

+  26,69,558 

Bombay,  Baroda  ,. 

Uec. 

29 

14,59.000 

—  1,61,000 

+ 

1,72,61,000 

_   8,68,000 

Burma 

Nov 

17 

3,84,540 

—     25,199 

t 

1,27,14,720 

—    2,46,886 

Delhi  Umballa       .. 

Jan. 

5 

68,700 

—     14,563 

12,69,086 

+    1,34.247 

East  Indian.. 

5 

22,49,000 

—     39,000 

3,19,89,000 

+  13,02,000 

Gt.  Indian  Penin.  .. 

^ 

32,912 

-       5,i«5 

2,71,052 

+        17,458 

Lucknow-Bareilly.. 

Nov 

17 

20,81,100 

+  5,73.000 

2,91,12,600 

+  13,12,803 

Madras      and       S. 

Mahratta  .. 

,, 

24 

9,40,000 

+      32,788 

70,90,000 

+    3,37,615 

Nizam's  Gd.  (Broad) 

,, 

24 

1,29,478 

—         499 

9,37.223 

+       68,272 

„  ,,.„     „,    (Metre) 

,, 

24 

81,521 

—       4,777 

5,17,609 

—       32,995 

Rohilkund  and 

Kumaon  .. 

j^ 

17 

30,736 

—      8,182 

2,65,117 

+         4,467 

South  Indian 

" 

24 

6,43,136 

+     63,810 

49.69,114 

+    3,05,617 

t  April  I.           t  October  i. 

TRAMWAY  AND  OMNIBUS.— HOME. 

i 

£ 

£ 

£ 

Dublin  United       ., 

Ian. 

II 

6,824 

+      655 

t 

11,006 

+         963 

Hastings  and  DISl.. 

14 

835 

—     105 

t 

1,756 

—        239 

Isle  of  Thanet 

5 

1S4 

—     104 

« 

2,290 

—       1,434 

Lancashire  United.. 

9 

2,212 

+     480 

+ 

+           601 

Pxovinoial    .. 

5 

•  2,3E6 

+     250 

* 

32,291 

+        4,20S 

Yerks.  (Wst.  Rdng.) 

13 

2,093 

+      352 

t 

4.382 

+           806 

*  From  Oct. 


t  From  Jan.  i. 


TRAMWAY  AND  OMNIBUS.— FOREIGN  AND  COLONIAL. 


£ 

£ 

Ms. 

£ 

£ 

Alabama  Power    .. 

Oct.    i 

113,018 

•H        22,072 

12 

1,253,083 

+     361,340 

Anglo-Argentine   , . 

Jan.    14 

54,406 

+          3,160 

* 

107,414 

+          4,239 

Auckland  Electric. . 

Oct.    26 

22,308 

+             880 

a 

92,118 

+          7,832 

Brazilian  Traction  . 

Nov. 

M7,695,ooffl 

+  M535,ooo 

11 

M84131000 

4-  M6558000 

Brisbane  Elec.  Inv. 

Oct. 

33,580 

+           820 

10 

328,420 

—         2,000 

British  Columbia  .. 

Nov. 

»I4I,309 

+     »3i,772 

4 

8432,464 

+     $29,124 

B.A.  Lacroze 

Deo.    . 

40,901 

+            795 

6 

230,476 

—            419 

Burmah  Electric  .. 

Nov.     b 

Rs.27,761 

+       Rs.937 

— 

82,884 

+   Rs.4,844 

Calcutta 
Carthagena  and 
Herrerias  . . 

Jan.      5 

Rs.57,172 

+  Rs. 2,462 

* 

Rs.57,172 

+   Rs.2,462 

Dec      6 

4,424 

+        2,025 

* 

49,566 

+        19,776 

Cordoba  Light 

P.&T 

Oct. 

12,481 

-        1,052 

7 

95,376 

—         2,640 

Hongkong  ,, 
La  Plata      .. 

Nov.   17 

12,308 

»55 

* 

$622,320 

—     $40,243 

Dec.     b 

4.605 

+             169 

12 

48,962 

—          1.873 

Lima 

Nov. 

16,965 

+          1,998 

11 

159,413 

+          4.850 

Madras  Electric   ,. 

Dec.  iic 

Rs.  46,046 

+  Rs.  5,876 

♦ 

Rs.847,320 

+  Rs.7g,442 

Manila  Electric... 

Aug.  8 

65,467 

+        4,667 

8 

547,492 

+       70,625 

Mexico 

Nov.  ! 

$215,256 

-$108,669 

* 

$3,193,106 

—  $197,227 

Rangoon 

Deo.    1 

5,438 

+             534 

♦ 

54,751 

+         2.509 

Singapore  Electric 

Oct.  27 

ti2,357 

-          $260 

♦ 

$529,661 

4-     $12,549 

Toronto 

Nov.   i 

»423,556 

-      »8,753 

II 

$5,032,176 

+   $239,133 

United  of  Monte  V. 

Dec. 

34,025 

+          2,661 

s 

65,085 

+          5,317 

Vera  Cruz   . , 

Oct.    S 

— 

9 

520,fOO 

Winnipeg    . . 

Nov.     ■ 

»86,888 

—     •14,744 

II 

$748,976 

—  $327,782 

*  28  days.      ♦  From  Jan.  I,      J  Nett.     ./i  From  July  1.      cTwowteks.' 
COLONIAL  RAILWAYS. 


Beira 

Canadian  Northern 
Canadian  Paciiic  . . 
Gr.  Trk.  Main  Line 
Gr.Trk.  Western.. 
Detroit  G.  H.  &  M. 
GrTkPac  Prairie  Sc 
Mashonaland 
Mid.  of  Westn.  Aus. 
New  Cape  Central.. 
Rhodesia 


£ 

£ 

£ 

£ 

Aug.  *c 

,  54.914 

—     12,287  1  10 

706,175 

+        4,297 

Jan.    7 

$565,800 

—  $32,900 

$22,422,600 

+  $192,400 

..     7 

$3,343,000 

+  $105,000 

*3,343,coo 

+  $105,000 

„    14 

145,904 

-     33,339 

318,292 

—       26,055 

„    14 

30,657 

—           555 

60,657 

+         3,247 

„    14 

9,442 

565 

22,274 

+          1,438 

^"     ' 

22,814 

+        9,710 

22,814 

+         9,710 

Sep.    ' 

47,670 

—        9,630 

47,670 

—         9.630 

Nov.  ♦ 

8,206 

-           199 

33,562 

+          1,108 

„"    '7 

2,071 

+            572 

85.374 

+        13,277 

Oct.    *c 

99,687 

+   .  11,023 

I 

99,687 

+        11,023 

'  Mohtlis. 


:  July  I. 


t  Jan.  I.       c  Fcom  Oct.  i. 


AIcoyandGandia.. 
Antofagasta    (Chili) 

Jan.    12 

„      £ 

Ps.     9,001 

— Ps.  3,oco 

i  Pa.  15,000 

—  Ps.   ^.STO 

.V        '3 

39,160 

—        1,755 

1           63,8te 

5,255 

Arauco 

Nov.     3 

15,000 

+        3,.50o 

I        117,500 

+ 

2I,200 

Argentine  N.E.      .. 

Jan.     12 

10,400 

+        4,000 

221. ABO 

+ 

38,39« 
10,946 

Bilbao  R,  and  Canta 

Oct. 

3,911 

—        1,426   io|          35.861 

Bolivar 

Dec.     * 

12,000 

+        4,193 

>              67,132 

f 

22.821 

Brazil 

Oct.      ♦ 

.\l4,20g,ooo 

-t-M2o8,i7i 

\  M  40607000 

+  Mi'iJA.^^OZ 

Brazil  Gt.  Southern 

Aug.     • 

Ml5.38,30o 

+    M2,o8o 

\     M325,937 

+ 

M43.467 

B.  Ayres  &  Pacific 

Jan.    12 

110,000 

+       16,000 

2,049,000 

Do.  Central     .. 

Nov. 

26,190 

+        3,579 

5         113.972 

+ 

14,222 

Do.  Gt.South'n 

Jan.    13 

124,000 

—      10,000 

1     2,682,705 

— 

314,549 

Do,       Western 

13 

55,000 

+       2,000 

1,151,000 



300,000 

Central  Argentine.. 

.,       12 

139,900 

+      37,300 

2,521,200 

— 

552,700 

C.Ur'g'ayofMtsV. 
Do.   East'n  Ex. 

..       12 

15,793 

+           879 

491,791 

+ 

136,566 

12 

4,372 

—       1,055 

131,871 

+ 

7,850 

Do.North'nEz. 

I.       12 

2,974 

565 

83,727 

+ 

23,409 

Do.  West'n  Ex. 

,,       12 

2,522 

+           789 

57,430 

+ 

4.323 

Cordoba  Central  .. 

,,       12 

37,800 

+      10,450 

,         841,480 

+ 

4.365 

Costa  Rica  . 

Nov.    24 

2,166 

-       2,643 

61,644 

— 

44,675 

Cuban  Central 

Jan.     12 

23,558 

+        3,756 

t        352,756 

+ 

77,343 

Dorada  Extension.. 

Dec. 

8,200 

—          300 

106,900 

+ 

7,200 

Egyptian  Delta      .. 

Nov.  20 

10,177 

+        1,693 

g         162,393 

+ 

18,492 

Entre  Rios  .. 

Jan.    12 

17,800 

+        6,400 

370,100 

+ 

50,900 

French  Sante  F^  .. 

Aug. 

132,000 

+      29,099 

i        900,336 

+ 

173.429 

Gt.  South,  of  Spain 

Jan.      5 

Ps.   23,857 

-Ps6l,44i 

Ps.  23,857 

—  Ps.6l,44I 

Gt.  West,  of  Brazil.. 

,,       12 

19,800 

+        4,300 

33,800 

4- 

7,250 

Havana  Central     . . 

Nov.  17 

8,115 

+        1,493 

146,563 

+ 

20,988 

Inter,  of  C.Amer... 

..       c 

11,712 

+        5,238 

240,451 



34,242 

La  Guaira  and  Car. 

Dec. 

5,500 

—           750 

87,000 

— 

5,500 

Leopoldina.. 
Midland  Uruguay  , . 

Jan.    12 

35,831 

+       13,531 

59.197 

+ 

21,379 

Uec. 

15.106 

+        1,520 

5          83,506 

+ 

10,009 

Mogyana 

N.W.  of  Uruguay.. 

Aug. 

M3, 248, 000 

+  M526,674 

M 14591,000 

4- 

M40,707 

Dec. 

$33,000 

+      $8,388 

5      $159,682 

+ 

$13,092 

Nitrate 

,, 

37,396 

+         8,165 

775,205 

-1- 

92,608 

Paraguay  Central  . . 

Jan.    12 

2,220 

+              70 

79,520 

4- 

7,650 

Paulista 

Aug.     ♦ 

M4,904,ooo 

4-Mll27274 

7  M  19990,000 

+  Ml72,000 

Peruvian  Corpn     . . 

Deo.     * 

Si,ioi,090 

+  8110,248 

5  S  6,088,270 

+  S  582,778 

Salvador 

Jan.      5 
Nov.     * 

*  1,798 

+              $8 

;     $450,826 

$4,851 

State  of  BahiaS.W. 

M85,ooo 

—  M45,ooo    1 

1  M  1,021,000 



M66,ooo 

S.  Paulo  (Brazilian) 

Jan.     13 

37,115 

+       8,066 

i       73,875 

4- 

23,120 

Sorocabana. . 

Dec.     ' 

W2, 107, 000 

■f  M224,206 

7      M  16,988 

4-  *!i735205 

Taltal 

♦ 

29,108 

+     13,306 

5        150,436 

4- 

38,895 

United  of  Havja  1. . 

Jan.     12 

66,306 

+     14,161 

t      1,151,337 

+ 

223,083 

West'nof  Havana.  .1     ,,        1-2  1 

8,692 

+      2,231 

t        200,478 

+ 

40,492 

Zafraand  Hunlva..!  Nov.     *  1 

10,538 

—        403   1 

2         123,820 

— 

3.332 

*  Months,  f  From 

Jan.  I.   1  From  Ju.'y  i 

cNett.    6 

5  days,    a  10  days. 

MONTHLY    STATEMENTS. 


NAME. 

NETT  EARNINGS  FOR 

MONTH. 

NETT  EARNINGS  TO  DATE. 

Month. 

Amount. 

In 
on 

.  or  Dec 
last  year 

o"' 

aP    Amount. 

ZS 

In.  or  Deot 
on  last  year 

Dols. 

Dols. 

Dols. 

Dols. 

Atchison  T.  4  S.F4   Nov. 

4,500,000 

— 

,062,000 

n 

44,686,000 

—  1,188,000 

Atlantic  Coast  Line  Sep. 

757,000 

+ 

132,000 

9 

8,260,000 

+     337,000 

Baltimore  &  Ohio  ..  Nov. 

1,918,000 

— 

,050,000 

11 

28,707,000 

—  2,26o,OOB 

Canadian  Northern 

754,700 

— 

495,300 

11 

3,269,800 

—  2,202,580 

Canadian  Pacific  . . 

5,258,000 

— 

306,300 

II 

42,635,001 

—  2,820,000 

Chesapeake  &  Ohio 

Oct. 

1,303,000 

— 

91,000 

10 

11,663,000 

—  1,262,000 

Chicago  &  N.W,    .. 

2,747,000 

— 

527,000 

10 

22,230,000 

—  3,025,000 

Chicago  Burl.  &  Q, 

2,943,000 

— 

,365,000 

10 

29,640,000 

—  1,925,000 

Chicago  G.W. 

355.000 



178,000 

10 

3,193,000 

—    836,000 

Chicago  Mil.  &  S.P. 

1,599,000 

— 

,525,000 

10 

17,297,000 

—  4,550,000 

Chicago,  Rock  I. &P. 

2,128,000 

— 

224,000 

10 

17,285,000 

—  2,101,000 

Colorado  &Southern 

536,000 

— . 

116,000 

10 

4,875,000 

4-     602,000 

Cuba 

89,465 

56,433 

3 

671,275 

—     180,123 

Delaware  &  Hud.  .. 

489,000 

— 

246,000 

10 

5,491,000 

— 1,130,000 

Denver  &  Rio  Gran, 

839,000 

— 

241,000 

10 

6,580,000 

—  i.iig.ooo 

Brie 

1,246,000 

— 

392,000 

10 

9,340,000 

—  6,269,000 

Gr.Tr.  Main  Line.. 

Nov. 

<:  86,200 

f  128,600 

11 

f  1,907,300 

—  £627,9^0 

-  4362,400 

Grand  Trunk  Westn 

6^15.650 

f  1.950 

II 

£35,450 
£67,700 

DetroitG.H.&Mil.. 

6;f6i,7oo 

— 

41, ICO 

11 

-    499,900 

Gt.  Northern 

Oct. 

2,684,000 

— 

905,000 

10 

19,880,000 

—  3,187,000 

Illinois  Central      .. 

1,852,000 

+ 

13S.0O0 

10 

16,072,000 

+  2,999,000 

Kansas  City  Southn. 
Lehigh  Valley 
Louisville  &Nashvl. 

351.000 

— 

77,000 

10 

3,756,000 

+      583,o«<' 

737,000 

— 

474,000 

10 

8,613,000 

—  2,034,000 

1,583,000 

— 

403,000 

10 

13,653,000 

—     658,000 

Minn.S.P.  (Soo)5.. 

1,943,000 

— 

294,000 

IC 

8,097,000 

-  3,057.000 

Miss.  K.  &  Texas  .. 

926,000 

— 

170.000 

10 

6,430,000 

+  2,171,000 

Missouri  Pacific   .. 

a. 212, 000 

4- 

112,000 

4 

7,735.000 

+  2,C1I,000 

NewYorkCent.&H. 

5,662,000 

— 

15,000 

10 

42,110,000 

-:i593,ojo 

N.Y.N.  Haven  &H. 

1,875,000 

— 

133,000 

10 

18,128,000 

-  1,057.0" 

New  York  Ont.&W. 

150,000 

— 

27,000 

10 

2,019,009 

—      43.««> 

Norfolk  &  Western. 

1,991,000 

— 

135,000 

la 

16.57fi.000 

-  8,375.000 

Northern  Pacific  .. 

■ 

3,147,000 

— 

123,000 

10 

24,532,000 

—     136,0«« 

Pennsylvania    East 

and  West  Lines. . 

8,433,000 

—I 

,600,000 

10 

81, 101,000 

— 13218,0*0 

St.  Louis  ik  SanF.. 

1,875,000 

4- 

33,000 

4 

7,264,000 

+  1,447,000 

Seaboard  Air  Line.. 

744,000 

+ 

61,000 

10 

6,113,000 

4-      304,0*0 

Southern 

,, 

3,104,000 

+ 

671,000 

10 

9,324,00c 

4-  1,748,000 

Southern  Pacific    .. 

7,077,000 

+  1 

,673,000 

10 

51,1x1,000 

4-  8,294,0*» 

Union  Pacific 

Nov. 

3,961,000 

— 

668,000 

11 

39,694,000 

—  2,312,000 

Wabash 

1,214,000 

~ 

134,000 

11 

10,269,000 

—     i66,oeo 

I 

S  Includes  Wisconsin  Central.    ♦  Gross  earnings,    t  Surphis.    »  Deficit. 


76 


XTbe  Jnveetors'  IReview. 


January  19,   1918. 


National  Discount  Company,  m. 

3S,    CORNKIILiX^,    IL.ONDON,    EI.C.  3. 


Telegraphic  Aadress :  "  NATDIS,  STOCK,  LONDON.' 


EBTABLISHBD    ISB*. 


Telephones:    Avenue, HM  (2  lioe ;) :  Canual,  11943. 


SUBSCRIBED    CAPITAL 
PAID-UP    CAPITAL     - 
RESERVE     FUND 


£4,233,325. 
£846,665. 
£450,000. 


DXXtESCTORS. 

S.   F.   MENDL,   Ouiirman. 
I  W.  J.  HERIOT.  I 

I  Hon.  S.  peel,  D.S.O.  | 

Sub- Manager. 
P.  GOLDSMITH. 
Auditors. 
F.  W.  PIXLEY  (Jackson,  Pixley  &  Co.).  A.  W.  WYON  (Price,  Waterhouse  &  Co.). 

BANK  OF  ENGLAND.  1  UNION  OP  LONDON  &  SMITHS  BANK,  LIMITED. 


L.  E.   CHALMERS,  Deputy-Chairman. 
F.  W.  GREEN. 

Manager. 
P.  H.  WADE. 


CHARLES  D.  SELIGMAN. 
P.  H.  WADE. 
Secretary. 
C.  H.  GOUGH. 


ONE     HUNDRED    AND    EIGHTEENTH    REPORT, 

To  be  Submitted  to  the  Shareholders  at  the  Ordinary  Annual  General  Meeting,  on  Monday,  the  31st  January,  1918, 

at  Cannon  Street  Hotel,  at  Twelve  o'clock  noon  precisely. 

The  Directors  have  to  report  that,  after  making  provision  for  bad  and  doubtful  debts,  the  gross  profits  for  the  year  ending  31st 
December  last,  as  shown  by  the  annexed  statements,  amount  to  £513,697  Os  2d,  which,  with  the  balance  of  £33,852  Is  lid  brought 
forward  from  the  previous  account,  gives  a  total  of  £547,549  2s  Id. 

After  providing  for  all  charges,  and  reserving  £404,499  2s  lid  for  Rebate  of  Interest  on  bills  not  matured,  there  remains  the  sum  of 
£115,585  3s  2d.  From  this  amount  must  be  deducted  tlie  Interim  Dividend,  for  the  half-year  to  30th  June  last,  of  Five  Shillings 
per  Share,  loss  Income  Tax,  absorbing  £31,749  18s  9d,  leaving  £83,835  4s  5d  for  appropriation. 

From  this  it  is  proposed  to  apply  £38,099  18s  6d  to  the  payment  of  a  Final  Dividend  of  Six  Shillings  per  Share,  less  Income  Tax. 
making  Eleven  per  cent,  for  the  year,  carrying  forward  £45,735  53  lid  to  next  account. 

The  Directors  report,  with  deep  regret,  the  death  of  their  valued  and  esteemed  colleague,  Mr  Edmund  T.  Doxat,  who  for  nearly 
thirty  years  had  been  a  member  of  the  Board,  and  for  over  fifteen  years  its  Chairman.  It  is  impossible  to  exaggerate  their  sense 
of  the  loss  the  Company  has  sustained.  His  great  ability  and  experience  have  largely  contributed  to  the  present  position  ef  the 
Company,  and  its  best  interests  were  his  constant  concern. 

The  Directors  have  also  to  announce,  with  great  regret,  that  the  Rt.  Hon.  F.  Leverton  Harris,  M.P.,  has  resigned  his  seat  on  the 
Boafd,  owing  to  his  acceptance  of  ofiBce  in  the  Government. 

The  Directors  have  elected  Mr  P.  H.  Wade,   Manager  of  the  Company,  to  a  seat  on  the  Board. 

The  Directors  who  retire  by  rotation  on  this  occasion,  in  accordance  with  the  Articles  of  .Association,  are  Mr  F.  W.  Green  and 
Mr  Charles  D.  Seliguian,  who,  being  eligible,  offer  themselves  for  re-election. 

The  retiring  Auditors,  Mr  P.  W.  Pixley  and  Mr  A.  W.  Wyon,  offer  themselves  to  the  Shareholders  for  reappointment. 

'*'  The  Dividend  will  bo  payable  on  and  after  the  23rd  January  instant. 

Dr.       PROFIT  &  LOSS  ACCOUNT  for  the  Year  ending  31st  Dec,  1917.      Cr. 


To  Current  Expenses,  including  Directors'  and  £  s. 

Auditors'  Remuneration,  Salaries,  and  all 

other  charges 27,464  16 

Rebate  of  Interest  on  Bills  not  due,  carried  to 

New  Account 404,499    2 

Interim  Dividend,  of  Five  Shillings  per  Share, 

less  Income  Tax      £31,749  18    9 

Pinal    Dividend,    of    Six 

Shillings  per  Share,  lege 

Income     Tax     (making 

Eleven    per    cent,     for 

the  year)  38,099  18    6 

Balance  oairied  forward  to 

next  account     45,735    5  11 


By     Balance     brought      forward      from      31st 

December,  1916      

Gross  Profits  for  the  year     


£        s.   d. 

33,852    1  11 

513,697    0    2 


115,585    3    2 


£547,549    2    1 


£547,549    2^1 


Dr, 


BALANCE    SHEET,    31st    DECEMBER,    1917. 


Cr. 


To  Subscribed  Capital— £4,233,325 
viz.,  169,333  shares  of  £25  each 
Capital  paid-up,  viz.  :  £5  per  share 

Reserve  Fund      <.. 

Deposits    and    Sundry    Balances 

Bills  Re-discounted        

Rebate     


s.  d. 


846,665    0    0 

450,000    0    0 

,  21,141,490  16  10 

.    9,597,239  15    3 

404,499    2 


Amount  at  Credit  of  Profit  and  Loss  Account        83,835 


By  Cash  at  Bankers 

Securities — 

British  and  Indian  Govern- 
ment, City  of  London 
Corporation  Bonds,  and 
Trustee  Securities        ...£1,029,553 

Other  Securities,  including 
shoTtdated  Colonial  Bonds   123,671 


£        s.    d. 

653,424    9  11 


7     1 
9    5 


£32,523,729  19    5 


Loans     

Bills  Discounted  

Interest  due  on  Investments  and  Loans, 

Sundry  Balances       

Freehold  Premises 


and 


1,153.224  16  6 

2,393,286  14  2 

28,000.608    8  9 

223,185  10  1 

100,000    0  0 

£32,523,729  19  5 


On  behalf  of  the  Board, 


fS.  F.  MENDL,  Chairman. 

IL.  E.  CHALMERS,  Deputy-Chairman. 
We  report  that  we  have  obtained  all  the  information  and  explanations  which  we  have  required.  We  have  examined  the  Securities 
representing  Investments  of  the  Company,  those  held  against  Loans,  and  all  Bills  discounted  in  hand.  We  have  also  proved  the  Cash 
Balances,  and  verified  the  Securities  and  Bills  in  the  hands  of  Depositors.  Incur  opinion  the  Balance  Sheet  is  properly  drawn  up  so 
as  to  exhibit  a  true  and  correct  view  of  the  state  of  the  Company's  affairs  according  to  the  best  of  our  information,  and  the 
explanations  given  to  us,  and  as  shown  by  the  Books  of  the  Company,  except  that  it  does  not  state  the  amount  of  Investments  and 
Billsplaced  as  security  against  Deposits.  FRANCIS    W.    PIXLEY,    F.C.A       I    ^„<jj(o,.s 


35,  Cornhill,  4th  January,  1918. 


ALBERT     W.      WYON,     F.C.A. 


Printed  by  the  St    Clemisnts  Press,  Ltd.,  Portugal  Street,  Kingsway,  London,  VV,C.,  for  the  Proprietor  of  The  Investors'  Review,  and  Published 
by  The  Proprietor,  Norfolk  House,  Norfolk  Street,  Strand,  W.C.  a.— January  19,  1918.  [N  1930 


TTbe 


3nv>e6tot6'  1Re\>few 


FOUNDED    BY     A.     J.     WILSON,    FEBRUARY,    1892. 


VoI.XLI.— No.  1,047.] 

NEW  SERIES. 


rE<glstered  as  al 
L    Newspaper.    J 


SATURDAY,  JAN.  26,   1918. 


[Price  6d. 


CONTBNTS. 


Passing  Events: — National  War  Bond  Sales  —  Revenue  — 
Committee  to  Supervise  Public  Expenditure  —  Report  of 
Committee  on  Premium  Bonds  —  Food  Shortage —  I,enin 
and  Trotsky  —  Labour  Party's  Conference  —  British  Trade 
Corporation  —  Russian  Shortage  of  Grain  —  Banks  : 
National  Provincial  —  Coutts  —  Union  of  Manchester  '■ — 
Bradford  District  —  Union  of  Australia  — •  West  Yorkshire 

—  Argentine  Navigation  —  Marconi's  Wireless  Telegraph  — 
Freeman,  Hardy  and  Willis  — _  Kyshtim  Corporation  — 
Gold  Production  Problem  —  British-American  Tobacco  Co. 
(pp.  79-83). 

Leading  Articles: — 'Volume  of  Trade  in  1917  —  The  Largest 
Bank  in  the  World  —  Home  Railwav  Yields  —  By-the-Way 
War  Notes  (pp.  84-8). 

Insurance  News  : — London-British  Law  Fire  Fusion  —  National 
Mutual  Life  —  Abstainers  and  General  —  Railway 
Passengers  Assurance  Bill  (p.  89). 

Money  and  Credit  Notes  :— Government  and  Russian  Bills 
Redemption  —  Market  Protest  —  Japan's  Financial 
Assistance  —  Norwegian  Budget  —  Money  in  More  Demand 

—  Bank  Return  —  Foreign  Exchange  Movements — United 
States  Treasurv  Certificates  —  Bank  Meetings  —  Silver 
(pp.  90-3  >. 


Mining     News  : — Mount    Lyell   — 
Broken  Hill  Block  10  (p.  95). 


Broken     Hill     Block    14 


Tea,  Oil,  and  Rubber 
Rubber  (p.  96). 


-Rubber  Output  Restrictions  —  Dunlop 


What  Balance  Sheets  Tell : — National  Bank  of  Australasia  — 
Royal  Bank  of  Australia  —  Bank  of  Toronto  —  London 
Merchant  Bank  —  Palatine  Bank  —  Banco  de  Bilbao  — 
J.  Sears  and  Co.  (True  Form    Boot  Co.)  —  (pp.  97-8). 

Company  Meetings : — Australian  Pastoral  —  Freeman,  Hardy 
and  Willis  —  British-American  Tobacco  —  African  Banking 

Coporation  (pp.  98-101). 

Answers  to  Cot  respondents  (p.  88). 

Oilfields  Production  (p.  89). 

The  Week's  Stock  Markets  (pp.  93-4). 

London  Produce  Markets  (p.  94). 

.  The  Week  in  Mines  (p.  95) 

Public  Income  and  Expenditure  (p.  95^ 

Dividends  Announced  (p.  96). 

Books  Received  (p.  96). 

Traffic  Returns  (p.  101). 


CANADA. 

THE  DOMINION  BANK. 

Head  Office,  TORONTO. 
Total  Assets    -      -    $97,061,000. 

SIR   EDMUND  B.   OSLER,  President. 
W,  D.   MATTHEWS,  Vice-President. 
C.    A.    BOGERT,  General  Manager. 


THE  TRUSTEES  CORPORATION 

(LIMITED). 


London  Branch,  73,  CORNHILL,  E.C.3. 

J.  HAYDN  HORSEY,  Manager. 


Dealers  in  Canadian  and   American    Exchange. 
General  Banking  business  transacted.   Informa- 
tion furnished  regarding  Canadian  matters. 

ROYAL   BANK   OF  SCOTLAND. 

_  Incorporated  by  Royal  Charter,  1717. 

PAID-UP  CAPITAL £2,000,000 

REST  AND  UNDIVIDED  PROFITS  914,968 

DBPOSITS 28,177,865 

Head    Offlce:    ST.    ANDREW    SQUARE,  EDINBURGH. 
Cashier  and  General  Manager,  A.  K.  Wright.         Secretary,  J.  B.  Adshead. 

London    Office:    3,    BISHOPSGATE,  E.C.  2. 

WiLLiAU  Wallace,  Manager.  Alex.  Dick,  Deputy-Manager. 

Glasgow  Office:     EXCHANGE  SQUARE. 

A.  Dennistocn,  Agent.  Thomas  Lillie,  Sub-Agent. 

167  Branches  throughout  Scotland. 

Banking  Business  of  every  description  transacted.  Accounts  opened  and  Agency 
business  undertaken  for  Foreign  And  Colonial  Banks  and  other  financial  estab- 
lishments. Drafts,  Circular  Notes,  and  Letters  of  Credit  issued  — available 
throughout  the  world.  Cable  transfers  are  also  made.  Deposits  received  at 
ioterest  repayable  at  call  or  at  notice.    Correspondence  invited. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  1880, 

Authorised  and  Issued  Capital,  3^6,000,000. 

Pald-np  Capital,  £2,000,000;  Reserve  Fund,  £1,980,000;  together    £3,980,000 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves £7,980,000 

HEAD  OFFICE    -        -        -        71,  CORNHILL,  LONDON,    E.C.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  thronghoit   the  AuMraitan 
States  and  Doniini'^n  of  New  Zealand. 

TELEGRAPHIC  REMIITANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
on  application. 


CAPITAL    -      -     £1,050,000. 


The  first    Corporation    founded    in  the    United 
Kingdom  to  act  as  Kxecutorand  Trustee  of  Willi 

and  Settlements. 

Trustees  for  Debenture  Issues. 

Agents  for  Foreign,  Colonial  and  Municipal  Loans. 

Bonds   tfranted    to    Receivers    and 

Administrators. 

Leasehold  and  Sinking  Fund  Policies  issued. 


Safe  Deposit  and  Halls  for  Meetings  at 
Winchester  House. 


Pamphlet  sent  on  application  to  the  Secretary  at  the  Head  Office. 

WINCHESTER    HOUSE,  OLD  BROAD  ST.,  LONDON,  E.C.2. 

Liverpool  Branch  and  Safe  Deposit :  2,  Exchange  Street  East. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated  by   the   Special  Charter  of   the   Imperial 
Japanese  Government,  1899. 

TAIPEH,   FORMOSA. 


HEAD  OFFICE      - 


BRANCHES— Tokio,  Kobe,  Osaka,  Amojr,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samaraog, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


UNION      BANK     OF     CANADA. 

Incorporated  1865.  Head  Officb  :  WINNIPEG. 


tS,  000,000 

$3,600,000 

$100,000,000 


PAID-UP  CAPITAL 

REST   AND    UNDIVIDED    PROFITS 

TOTAL  Assets  exceed       ..      ..      .. 

The  Bank  has  over  300  Branches  in  Canada,  and  Agents  In  the  principal 

cities  in  Amerloa.       General  Banking  Business  Conducted. 

Deoosits  Received  for  fixed  periods  at  favourable  rates,  which  may  bt 

ascertained  on  application  to 

Loniion  Offices  :  S,  PRINCES  STREET.  E.C.  8,  and  »8.  HAVMIRKn,  8*.  1 


Kiw  Vork  Agensy :  49.  Wall  Street. 


78 


ttbe  3n\)e8tor8'  IReview. 


January  26,   1918. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office  1  15,  Gracechurch  Street,  London,  E.C.  3. 


Capital  Authorised 
Capital  Issued 
Capital  Paid  Up  ... 
Reserve  Fund 


£1^00,000 

1,125,000 

562,500 

600,000 


BrtncHes  t 

INDIA,   BURMAH,   CEYLON,    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS.    MAURITIUS. 

The  Bar*  buys   and  sells  Bills  of  Exchange,   issues   Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business   in  connection  with 

the  East,  on  terms  to  be  bad  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  ouprant  aooounts  interest  is  allowed  at  1  percent,  per  annum  on 

daily  balances. 


THE  YOKOHAMA   SPECIE   BANK.   LIMITED. 

Registered  in  Japan.) 
ESTABLISHED    1880. 

Subscribed  Capital        Yen  48,000,000 

Capital  Paid  Up Yen  36,000,000 

Reserve  Fund         ..        ..  ..    Yen  22,100,000 

Head  Office:   YOKOHAMA. 
Branches  and  Agencies  at 
Bombay.  Honolulu.  New  York.  Slngapo«e. 

Calcutta.  Hong  Kong.  Osaka.  Sydney. 

Changchun.  Kobe.  Peking.  Tientsin. 

Dairen  (Dalny).  Los  Angeles.  Rangoon.  Tokyo. 

Fengtien  (Mukden).       Lyons.  San  Francisco.  Tsinanfu. 

Hankow.  Nagasaki.  Seattle.  Tsingtau. 

Harbin.  Newchang.  Shanghai. 

The  Bank  buys  and  receivea  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  transacts  General  Banking  Business, 
Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  applicatica. 
London  Office:   7,  BISHOPSGATE.  E.C. 2. 

K.  TATSUMI,  Miaager. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Autliorised  Capital   £4,000,000 

Paid-up  Capital 1,800,000 

Reserve  Fund 2,000,000 

IRikKCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendoza,  Concordia,  Bahia 
Blanca,  Cordoba.  Tucuman,  Parank,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires),  Boca  (Buenoi  Aires),  Calle  Santa  F^  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires).  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agency),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro,  Sao  Paulo,  Santos,  Per- 
nambuco.  Para,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  Hal^vy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.     Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

Head  Office— 71  Old  Broad  Straet,  E.C. 

Subscribed  Capital         ..       <B1, 276,747     ID    O 

Paid  up  Capital 669,685      0     O 

Reserve  Fund  and  Undivided  Profits         .,  375  680   11     8 

Reserve  Liability  of  Proprietors       ..         ..  606,962    10    O 

REMITTANCES  made  by  CABLE. 

DRAFTS,  LETTERS  OP  CREDIT  and  CIRCULAR  NOTES  issued  upon 

Branches  and  Agents. 
BILLS  on  AuBiralasU  NEGOTIATED  or  sent  for  collection, 
DEPOSITS  RECEIVKD  for  periods  and  at  rates  which  may  b«  asoertviiud 

on  application,  and   BaDktng   Business   of   every  dHortpticQ   eoadusted 

wmth    Anatraliik 


with  Australia. 


THE  BANK  OF  ADELAIDE. 

'  (Incorporated  by  Act  of  Parliament,  1865.) 

Authorised  Capital         ■    KI.OOCON.  Subscribed  Capital    ■    -    CSiS.OOfl 

Paid-up  Capital       :f 500,000 

Reserve  Fund  ,,        ^^  540000 

Uncalled  Capital ^''«?'SSo 

Reserve  Liability  of  Shareholders '         625^000 

iCi,?90^ 
London  OtSce- 11,  Leadenhall  Street,  E.C.  3. 
BILLS  on  Australasia  purchased  or  collected. 
DRAFTS  iasuedand  REMITTANCES  cabled. 
DEPOSITS  received  for  fixed  periods  at  rates  to  be  ascertained  on  application 

PERCY  ARNOLD  Mana«er. 


BANKS. 


BANK  OF  NEW  SOUTH  WALES 

Bstablishid  1111. 

Paid  up  Capital £3,904,860 

Reserve  Fund     2,87B,000 

Reserve    Liability    sf 

Proprietors     3,904,880 

g10,684,7g0 

Head  Office :  SYDRBT,  HEW  SOUTH  W1LB8. 
London  Directors : 

Sir  Frederick  Green,  Chairman. 
H.  L.  M.  Trittok,  Esq.  Walter  S.  M.  Bukms,  Esq. 

David  George,  Manager.  J.  S.  CAMrBELL,  Secretary. 

Halkerstonk  Msi.DP.uir,  David  Geddik, 

Assistant  Manager.  AeamntaeU. 

The  Bank  has  331  Branches  and  Afenelss  in  the  Australian  States, 
New  Zealand,  Fiji,  Papua  (Nrw  Guinea),  and  London,  and  Agent,  and 
Correspondents  all  over  the  World,  on  whom  the  London  Otce  grant. 
Circular  Letters  of  Credit  and  Circular  Notes.  Also  issue.  Dralu  on 
demand.  Makes  Mail  and  Cable  Transfers.  Negotiates  and  CoUecta 
Bills  of  Eicbange.  Receives  Deposits  for  Fixed  Periods  on  terms 
which  may  be  known  on  application,  and  transacts  every  description  of 
Austr-ilian  Banking  business. 

liOndon  Office:  29,  THREADNBBDLiB  STRBBT,  K.C.  t. 


ENGLISH,    SCOTTISH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

Subscribed  Capital £1.0781875    o    o 

Paid-up  Capital 539.437  10    • 

Further  Liability  ot  Proprietors      ,.         ,.  539.437  10    o 

Reserve  Fund 500,000    o    0 

LETTERS  OF  CREDIT  and  DRAFTS  on  the  Branchei  and  Affttooie*  ol 
the  Hank  in  Australia  can  be  obtained  at  the  Head  Office,  or  tbrouK^  the  Ag«ntt 
of  the  Bank,  in  the  chief  Provincial  towns  throughout  the  United  Kingdom. 
REMITTANCES  m^de  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOTIATED  or  forwarded  for  COLLECTION. 
BANKING  and  EXCHANGE  Business  of  everr  description  transacted  with 
Australia. 
^ E.  M.  lANION    Manager. 

BANK    OF    NEW    ZEALAND. 

{Incorporated  July  2gth,  1861.) 
BANKERS  TO  THE  HEW  ZEALAND  GOVERNMENT. 
London  Office:  i.  Queen  Victoria  Street,  London,  E.C.  4. 

AUTHORISED  CAPITAL        f 5.500,000 

SUBSCRIBED  CAPITAL. 

Four  per  Cent.  Guaranteed  Stock         f  319,9'' 

"A"   Preference  Shares  issued  to  New  Zealand  Government        ..       500.000 
"B"  Preference  Shares  issued  to  New  Zealand  Government        ..       250,000 

Ordinary  Shares i.soo.ooo 

fi.779.9» 

Reserve  Fund  and  Undivided  Profits    . .  .£'2,046,595 

Negotiates  and  collects  Bills  of  Exchange. 

Grants  drafts  on  its  Offices  in  New  Zealand,  Australia,  Fi}i  and  Samoa.     Re- 
mittances made  by  telegraphic  transfer. 
^ ALEXANDER  KAY.  Ma— c«r. 

THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 
Paid-up  Capital    ..    £2SO,000    0    0     25,000  Shares  of  £ia  each. 
Reserve  Fund  . .     . .  £700,000    0    0  I  Beiem  ProflU    . .  <ie,OU 

Reseryea  UaDilUy  of  Shareholder!  XSU.OOO. 

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banking  and  exckange  bustnees  coaneoted  with  We«t«m  Australia  conducted 

tbxoufiii  ttie  UxKion  Amots,  Ttia  Bank  af  Adetait**,  11.  Laadenhall  Be,  B.C.I. 

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I 


^be  5nve8tor6'  IReview. 


Vol.  XU.— No.  1,047. 

B*m  Barlai. 


SATURDAY,  JAN.  26,  1918.  .C^XiU'.')  Price  6d. 


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Passing   Events. 


P,...,,,..,..... 

Hhas  put  every  other  city  in  the  United  King-dom— and 
^London  most  of  all— in  the  shade  by  its  magnificent 
^contribution  of  ^"i4,i7i,7rx)  to  the  War  Bond  issue, 
equal  to  ;£,  14  per  head  of  the  present  estimated  popu- 
lation, last  week's  aggregate  sales  were  not  so  big  as 
those  of  the  week  before,  only  ;£;30,773, 243  having 
been  paid  over.  But  even  that  only,  if  kept  up  through- 
out the  kingdom,  would  considerably  lighten  the  task 
Wpf  the  men  and  institutions  who  have  to  finance  this 
war.  It  brings  up  the  aggregate  debt  so  far  created 
■  by  the  Bank  of  England  portion  of  this  form  of 
national  debt  to  ;^'284,663,307.  This  is  exclusive  of 
the  Post  Office  contribution.  The  Post  Office  collected 
£977,000  the  week  before  from  41,000  subscribers 
—-the  Bank  of  England's  ^^31, 000,000  being  pro- 
vided by  23,750  subscribers—and  altogether  the  Post 
Office   has   now  furnished   ;^i3,56i,ooo  in  the  course 

I— of  less  than  sixteen  weeks,  but  in  that  time  the 
^■Government  has  spent  more  than  twice  as  much  as  it 
Hbas  raised  by  every  device,  and  to  all  appearance  must 
^g:o  on  spending  it,  economies  or  no  economies,  unless 
the  democracies  of  the  oppressed  Habsburg  and  Hohen- 
zoUern  Empires  go  on  strike  everywhere  against  their 
tyrants,  which  would  be  the  best  of  all  endings  of  the 
present  world  cataclysm. 


the  Government  had  to  raise  ;^^5, 000,000  at  the  Bank 
on  temporary  loans,  and  even  then  had  not  enough  to 
meet  all  demands,  for  the  Exchequer  balances  were 
reduced  by  ;^i,03i,ooo  to  ;£■  16,642 ,000.  That  is  to  say, 
the  total  receipts  of  the  week,  exclusive  of  the  draft 
from  the  Exchequer  balances,  was  ;^i 27,758,000,  and 
the  total  expenditure  ;^' 128,789,000.  The  Government 
had  to  devote  ;^  1,000,000  to  the  "  depreciation  fund," 
that  is,  to  the  support  of  the  market  for  war  debt,  and 
it  had  to  meet  ;£,58,786,ooo  of  Treasury  bills  falling 
due  for  repayment.  It  paid  off,  too,  ;£,6, 500,000  6i 
temporary  advances,  or  ;^i,5oo,ooo  more  than  was  re- 
borrowed, and  redeemed  ;^i, 402,000  of  War  Loan  and 
Exchequer  bonds,  besides  ;^2,676,ooo  of  "  other  "  war 
debt. 


li 


E 


Expenditure  on  Supply  jumped  again  last,  week  to 
-^57>523.ooo,  and  that  was  equal  to  nearly  ;^8,2i3,ooo 
jx-r  diem.  Other  outlay  was  comparatively  insigni- 
ficant at  ;^846,ooo,  so  that  the  daily  average,  all  in- 
cluded, was  slightly  under  p^S, 338,000,  but,  however 
reckoned,  the  total  is  a  severe  strain  upon  the  country's 
credit  machinery.  In  this,  the  final  quarter  of  the 
Government  year,  when  the  proceeds  6f.  taxation  flush 
the  Exchequer,  last  week's  actual  revenue  of 
;^23,962,ooo  was  equivalent  to  barely  ;^3, 422,000  a 
day,  so  we  spent  about  ;^5,ooo,ooo  a'  day^  more  than 
we  received.  Thanks,  however,  to  the  larger  receipts 
pm.  National  War  Bonds,  which  produced 
J26, 145,000,  paid  over  to  the  Treasury  last  week,  and 
jpio  ;£'i6, 1 27,000  received  from  "other"  unrevealed 
war  debt  sources,  the  output  of  Treasury  bills  was  less 
bulky  than  usual,  or  than  was  required,  yet,  besides 
•obtaining  ;^2,6oo,ooo  from  War  Savings  Certificates, 


All  these  financial  operations  show  that  the  Treasury 
is  not  merely  devouring  ;^' 100, 000 ,000  to  ;^"i 30,000,000 
or  more  a  week  and  getting  as  yet  nothing  solid  in  re- 
turn, but  that,  even  on  the  most  sanguine  anticipation, 
the  continuance  of  a  nett  weekly  expenditure  on  the 
war  at  the  present  scale,  or  near  it,  would  by  this  time 
next  year  become  well  nigh,  if  not  altogether,  beyond 
the  power  of  the  world's  financial  markets,  let  alone 
our  own,  to  sustain.  All  the  world  is  already  engaged 
in  the  support  of  the  London  and  Paris  Money  markets, 
and  in  proportion  as  they  become  involved  is  the 
narrowing  of  the  sources  on  which  we  can  rely  for 
help.  But  for  the  help  of  America  we  should  already 
have  been  hard  pressed.  Our  consolation  is  that  Ger- 
many, shut  in  upon  itself,  is  much  worse.  Its  eighth 
war  loan  is  heralded  for  issue  in  March,  and  we 
have  never  been  told  how  the  seventh  fared. 


we 

w 


Everybody  who  thinks  at  all  should  therefore  be  dis- 
posed to  be  relieved  to  hear  that  the  Government  has 
decided  to  set  up  a  committee  to  supervise  public  ex- 
penditure at  its  source.  It  is  a  small  committee,  whose 
chairman  is  Lord  Inchcape,  a  very  able  and  experienced 
man  of  business,  who,  however,  is  already  so  fully  occu- 
pied with  the  great  banking,  shipping,  and  other  in- 
terests with  which  he  is  identified  as  to  make  it  doubt- 
ful whether  he  can  spare  the  necessary  time  for  the 
prodigious  amount  of  work  to  be  done.  The  coinmittee, 
to  be  really  useful,  should  be  able,  with  the  help  of  the 
trained  experts  it  will  doubtless  employ,  to  exercise  an 
effective  supervision  over  the  prices  tendered  by  manu- 


8o 


Zbc  Jnvestocs'  'Review. 


January  26,    1918. 


facturers,  the  cost  of  materials,  and  also,  we  hope,  over 
the  necessity  or  expediency  of  the  proposed  expenditure 
ab  initio.  We  wish  this  new  body  all  success,  but 
cannot  help  feeling  that  its  institution  has  come  at  least 
two  years  too  late  to  save  the  country  from  a  waste 
that  promises  to  cripple  and  circumscribe  its  energies 
for  many  a  day  to  come.  Long  ago  we  put  the  \v_aste 
outlay  at  25  per  cent,  of  the  total  expenditure.  I  hat 
was  merely  a  guess,  based  upon  such  instances  as  came 
within  our  ken  at  the  time,  but  the  longer  we  look  on 
the  less  inclined  are  we  to  regard  it  as  an  under-esti- 
mate.  For,  give  officialdom  its  head,  and  it  flings 
pounds  about  with  more  heedless  profusion  than  a 
provident  citizen  would  throw  farthings.  "  Ask,"  said 
a  man  who  had  gone  through  the  experience,  "ask  for 
a  trifle  to  pay  for  your  little  knife,  costing  a  few 
shillings,  and  you  may  succeed  in  getting  it  only  after 
wasting  time,  energy  and  a  mass  of  stationery,  if  you 
get  it  at  all.  Ask  for  something  that  costs  thousands, 
and  the  chances  are  you  get  it  at  once." 

Plainly  the  gentlemen   who  inquired   into  the   feasi- 
bility or  otherwise  of  creating  issues  of  premium  bonds 
were  more  than  right  when  they  declared  themselves 
satisfied  that  "  so  far  as   the   general   public   and   the 
small  investor  are  concerned,   the  present  Government 
issues  fail  to  enlist  all  the  financial  support  that  might 
be  obtained."     An    "investment   broker,"   by-the-bye, 
has  been  writing  to  the  papers  to  pronounce  this  report 
as  "  frankly  ludicrous,"  and  it  looks  so  at  first  blush, 
for  not  only  does  the  committee  admit  that  the  present 
means  of  raising  money  are  not  adequate,  but  in  more 
than  one  phrase  of  the  report  it  hints  that  the  premium 
bond  would  be  a  most  effective  method  of  collecting 
capital   from   the   multitude  that   now  wastes   it.      In- 
deed,   from    the    point    of   view   of    its   admissions,    it 
affords  the  strongest  help  to  those  who  wish  to  rescue 
the  nation's  finances  from  what  may  be  called  complete 
subservience  to  the  pious  and  wealthy  pharisees.      For 
instance,  they  tell  us  quite  frankly  that  "  it  was  ad- 
mitted by  many  witnesses — notably  several  very  hostile 
to  premium   bonds — that   the  War  Savings   certificate 
does  not  appeal  to  the  working  man,  and  that  his  in- 
^-    vestments  in  them  were  due  to  patriotism  and  persua- 
sion  rather  than  to  personal  inclination."     It  is  very 
good  of  them  to  say  so  much;  and  they  might  have 
gone    further    and    told   the   public  that,    so    far   from 
inciting   people   to    "gamble"    and    to   neglect    work, 
or  otherwise  misbehave   themselves  in   their   desire   to 
"  make   a   bit,"  even  as   the   punter  in   rubber  shares 
does,  by  hunting  after  such'  premiums  which  may  fall 
to  one  or  other  of  the  numbers  of  some  of  the  bonds, 
these  premium  bonds  really   stimulate  to  the  exercise 
of  thrift,  because,  while  the  prizes  are  not  large  enough 
in  999  cases   out    of   a  thousand    to    incite   any   other 
passion   than    the   mild    greed    engendered  by  a   club 
sweepstake,  if  so  much,  they  nevertheless  prompt  the 
investor  to  go  on  and  on  laying  by  his  spare  moneys. 
But  it  is  all  useless,   and  the  real  foundation  for  the 
futility  of  the  committee's  conclusion  is  to  be  found  in 
their  fear  of  the  "  Nonconformist  conscience,"  or,  as 
we  should  say,  of  the  ultra-proper  Mrs.   Grundy  to  be 
found  among  all  forms  of  religion.     Parliament  could 
not  be  persuaded  to  pass  the  necessary  authorising  Act 
without  needless  wrangling.     Therefore,,  what  is  the  ulse 
of  going  on  with  the  scheme?     We  quite  agree.     Also 
we  quite  expect  that   the  very  same  people  who   now 
cow  us  by  their  performances  on  the  stilts  of  their  pre- 
judices will  be  among  the  most  eager  to  fall  back  on 
the    premium    bond    when    the   "tanks"    sensation    is 
played  out  and  the  burden  on  our  loyal  and  long-en- 
.    during  banks  threatens  to  become  unendurable. 


We  are  not  starving,  or  likely  to  starve,  if  everybod> 
endeavours  to  help  by  self-discipline.     To  encourage  us 
to  do  that,  we  should  try  to  realise  what  the  difficulties 
are  under  which  we  have  to  live.     How  many  mouths 
does  the  average  citizen  imagine  the  Government  to  be 
obliged  to  feed  outside  the  country  in  consequence  of 
this  war?     We  have  to   supply  all  our   own  army    in 
France   and    Belgium,     in     Italy,     in     Macedonia,    in    , 
Palestine,  and  in  Mesopotamia  ;  also,  we  have  to  fur- 
nish   part  at  least  of   the  freight   necessary    to   carry 
food,    &c.,    to   the   armies    of    France,    Italy,    Greece, 
Serbia,  and  India.     Beyond   this,   we  have  a   fighting 
fleet  of  unprecedented  magnitude  to  keep  supplied,  not 
only  with  food,  but  with  every  article  required  to  main- 
tain it  in  a  position  of  supremacy  over  all  enemy  fleets. 
Taking    everything    into  account,    it  is   not   an   exag- 
gerated estimate  to  place  the  total  number  of  persons 
dependent  upon  food  provided  by  the  British  Govern- 
ment at  probablv  at  least  10,000,000.     That  is  to  say, 
we  have  10  furnish  a  sufficiency  of  food  for  every  day 
of  the  week  and  year  to  numbers  larger  in  the  aggre- 
gate than  the  entire  population  of  Scotland  and  Ireland 
combined.      Had  there  been  no  destruction  of  British, 
French,  Italian,  and  neutral   shipping  to  embarrass  us 
in  fulfilling  an  imperative  duty  of. this  magnitude,   it 
would    still  have    entailed  a   shortage  of  supplies   and 
liardships  at  home.     With  the  destruction  of  shipping 
by  the  German  submarine  added   to  our  other  a'm'CU'- 
ties    the  wonder  to  us  always  is  that  we  are  as  well  oft 
as  vve  are.      But  the  fact  that  perhaps  quite  60  per  cent, 
ofourentire  mercantile  marine  is  absorbed  in  ministermg 
to  the  requirements  of  our  own  armies  and  the  armies  ot 
our  -Allies,  as  also  in  maintaining  the  efficiency  of  our 
own  and  Allied  navies,  should  be  put  before  the  people 
at  home  insistentlv,  so  as  to  educate  them  to  an  under- 
standing of  the  position.     This  is  the  more  necessary 
because  we  are  not  yet  by  any  means  at  the  worst  ot 
our  troubles.     We  are  not  sure,  indeed,  that  even  it  the 
war  ended  next  month  it  would  not  be  at  least  another 
vear  before  we   began  to  settle  down  again  in  some- 
thing like  our  old  comfort  if  we  so  desired.    You  cannot 
disperse  armies  of  the  magnitude  now  on  foot  :n  a  day 
or  a  month,  furnish  the  discharged  men  with  remunera- 
tive   emplovment,   begin    to    reap   harvests   before  the 
ground  has'  been  tilled  to  be  ready  for  the  seed,  or  to 
do  any  miraculous  things  of  that  kind.      Ships  have  to 
be  built  to  replace  those  sunk  by  the  enemy  or  worn 
out    land  has  to  be  retilled  and  stimulated,  and  many 
months  must  elapse  before  we  can  count  much  upon 
help  from   that   section  of  our  mercantile   marine  new 
assigned  to  the  service  of  our  fighting  forces.     A  long 
time  of  stress,  not  to  sav  distress,  is  consequently  ahead 
of  the  countrv,  and  we  hope  that  fact  will  not  be  lost 
sight  of  or  smothered   beneath  the  multitude  of   rules 
and  regulations  now  being  formulated  in  order  to  edu- 
cate the  nation  to  self-re.straint  and  a  wise  economy  m 
food.     The  British  Empire  can,  happily,  reckon   upon 
the   support  of   its  dominions  oversea,  but   for  a  time 
they  and  we  may  have  quite  enough  to  do  to  provide  for 
our  own   requirements,    and    much    effort    and    great 
organisation   will  be  necessary  to   make  each   country  ^ 
first  self-supporting,  and  then  capable  of  producing  a 
surplus  for  export  by  which  its  general  wealth  may  be 
ausfmented. 


It  is  reported  that  German  picture  shows  are  now 
exhibiting  in  Berlin  and  elsewhere  within  the  Hohen- 
zollern  Empire  snapshots  of  London  food  queues,  and 
pointing  the  moral  for  the  encouragement,  if  not  the 
consolation,  of  their  own  deluded  people,  now  starving. 
It  is  not  true  that  we  are  starving,  but  it  is  much  nearer 
the  truth  than  the  lies  most  in  favour  with  our  enemies. 


Those  who  have  the  chance  should  look  well  at  a 
portrait  of  Lenin  published  in  Lei  Annales  on  January 
20.  It  is  the  most  instructive  representation  of  the  man 
that  we  have  seen,  and  shows  us  a  pear,  or  kidney 
potato,  shajjed  head  doming  high  above  the  ears,  with 
an  enormous  development  of  the  base  behind  the  ears. 
and  a  general  contour  which  indicates  fanatical 
idealism.  Compared  with  Trotsky,  also  portrayed, 
Lenin  looks  a  cold,  remorseless  man,  whose  principles, 
as  he  would  call  them,  could  contemplate  unmoved  the 
perpetration  of  any  amount  of  ruthless  crime  if  it  wort 
deemed  necessary  to  their  triumph,  and  whose  know 
ledge  of  men  and  of  practical  affairs  is  self-evolved,  noi 
the  product  of  experience  or  knowledge  of  mankind 
Trotskv,  on  the  other  hand,  has  the  appearance  of  ai 
ordinarv  artisan,  alert,  keen  in  debate,  obstinate,  arn 


January  26,   1918. 


XLbc  Jnvesiors'  TRevtew. 


81 


it  may  be  passionate  when  contradicted,  but  it  is 
neither  an  inherently  cruel  nor  a  selfish  face.  These  are 
the  two  men  for  the  moment  at  the  top  in  Northern 
Russia.  Will  they  stay  there  long  ?  We  do  not  for  a 
single;  moment  believe  it,  but  they  may  stay  long 
■  enough  to  bury  Russian  society  in  ruins.  Their 
proceedings  must  in  the  nature  of  things  bring 
about  their  own  eclipse.  It  probably  would  not 
be  fair  to  lay  upon  their  heads  the  crime  of 
murdering  those  two  eminent  Russian  democrats, 
Shingareff  and  Kokoshkin,  into  whose  hospital  sundry 
men  of  the  Red  Guards  penetrated  to  slay.  Lenin, 
indeed,  has  denounced  the  crime,  but  it  is  only  a 
crime  of  the  same  kind  as  those  he  and  his  asso- 
ciates are  perpetrating  wherever  they  get  the  upper 
hand  every  hour  of  the  day  and  night.  Only  as  yet 
they  kill  by  wholesale  with  machine  guns  and  bands  of 
assassins  in  arms.  They  have  evoked  complete  law- 
lessness. A  "  Constituent  Assembly  "  which  struggled 
into  the  light  last  week  in  Petrograd  was  not  allowed 
to  live  a  full  day  because  it  was  not  sufficiently 
anarchic  for  Lenin,  and  was  sent  about  its  business 
amid  slaughter.  Lenin  and  his  band  are  intent  upon 
pulling  down  all  who  stand  above  them  in  anv  position, 
all  who  possess  anything  seizable.  They  would  level 
Russia  down  to  a  dead  flat  plane,  where  no  head  would 
be  suffered  to  rise  an  inch  above  the  basest.  In  their 
zeal  for  confiscation  they  are  destroying  every  source 
of  well-being  in  all  the  territory  within  their  control  or 
reach,  and  in  proportion  to  their  success  must  be  the 
reaction  and  the  completeness  of  their  ultimate  defeat. 
The  Bolsheviks,  as  we  have  fallen  into  the  habit  of 
naming  these  anarchists,  are  not  Russia,  and  do  not 
represent  Russia.  As  .Sir  George  Buchanan  has  again 
warned  us,  Russia  is  something  greater,  av,  and 
nobler,  than  anything  that  Lenin  and  his  band 'can  be 
held  to  represent.   ' 


As  we  said  a  week  ago,  these  men  appear  to  us  to 
be  pushed  on  from  behind  by  the  dispossessed,  Prus- 
sianised bureaucracy,  which  is  doubtless  furious  and 
burning  to  be  avenged  on  the  patriotic  men  who 
brought  about  the  revolution  and  tried  from  the  start 
to  guide  it  into  the  channels  leading  to  constitutional 
development  and  orderly  government.  But  Russia  will 
emerge  from  the  welter  of  anarchy  and  blood,  and  the 
Russian  spirit  will  assert  itself  in  spite  of  all  that  these 
wreckers  can  do.  The  Germans  may  intrigue  and 
manoeuvre  to  dismember  the  country,  lie  also  without 
shame  or  scruple  at  Brest-Litovsk,  at  Petrograd,  at 
Kieff,  wherever  they  can  get  a  hearing ;  but  if  they 
imagine  that  they  can  hypnotise  and  submerge  the  soul 
of  the  Slav  by  their  sophistications  they  are  going  to  be 
once  again  deceived  by  their  self-confidence  and  over- 
weening vanity.  The  Slav  will  not  desert  his  kindred 
in  Serbia,  in  Slavonia,  in  Bohemia,  in  Poland,  in 
Rumania,  or  wherever  their  race  kindred  lie  writhing 
under  the  heel  of  the  cruel  oppressor,  any  more  now 
than  he  was  disposed  to  do  when  the  ex-Tsar  under 
popular  impulse  made  war  against  the  traitorous 
Austrian  for  the  sake_of  .Serbia  alone.  A  "  peace  "  has 
been  concluded  with  the  Ukrainians  it  is  reported.  If 
that  be  true — it  is  merely  a  German  falsehood  at  pre- 
sent— it  may  prove  to  be  the  first  move  towards  the 
reunification  of  Russia. 


So  far,  the  Conference  of  Labour  Parties  at  Not- 
tingham has  not  revealed  the  revolutionary  element  or 
the  fanatic-pacifist  faction  to  be  particularly  strong 
amongst  our  working  classes.  A  speech  that  might 
have  come  from  Mr.  Lloyd  George  himself  was  de- 
livered at  the  opening  by  the  President,  Mr.  Purdy.  It 
revealed  a  thorough  comprehension  of  the  attitude  that 
Prussian  arrogance  and  insatiable  greed  has  forced  the 
Allies  to  maintain.  .At  the  same  time  Mr.  Purdy  put 
forward  the  claims  of  the  democracy  to  take  a  large 
share  in  arranging  the  peace,  which  is  reasonable,  and 
the  effect  as  a  whole  was  excellent.  Especially  excel- 
lent was  the  acceptance  of  the  more  emphatic  declara- 
tions aganst  a    traitor's   peace    by    those     a.5sembl6d. 


Prussian  brute  dominance  has  to  be  destroyed  in  Ger- 
many itself  as  everywhere  before  the  working  man  can 
have  his  peace.  So  far,  no  indication  whatever  was 
revealed  of  the  formation  of  any  Bolshevik  party  here. 
Doubtless  anarchism  of  the  Russian  type  has  its  sym- 
pathisers amongst  workmen  here  as  in  every  other 
country,  but  at  present  even  the  Extremists  amongst 
us — who  are  rarely  or  ever  real  men  of  labour — have 
sought  to  keep  within  hail  of  common  sense,  and  pre- 
sently the  Russian  Marxians  and  the  anarchic  Govern- 
ment set  up  in  Russia  under  their  inspiration  will  pro- 
bably furnish  a  valuable  object-lesson  upon  the  fruits  of 
idealism  in  action  which  may  check  the  spread  of  dis- 
orderly political  theories  here.  Only  so  far  as  they 
support  the  common  right  of  all  to  justice  and  equity 
can  the  pacifists  and  subverters  among  us  count  on 
toleration. 


Not  much  was  to  be  expected  from  the  British  Trade 
Corporation  in  the  first  few  months  of  its  existence,  and 
the  report  to  December  31  shows  that  it  has  been  mainly 
engaged  on  the  preliminary  work  of  organisation. 
Gross  profits  amounted  to  ;^i7,6io,  and  the  nett  profit 
comes  out  at  ^^9,670,  subject  to  income-tax.  It  is  pro- 
posed to  apply  the  balance  towards  writing  off  pre- 
liminary expenses,  which  are  shown  at  the  moderate 
sum  of  ^,io,oSo,  including  ;iQij,ooo  stamp  duty  on 
issued  capital.  In  addition  ;^^20,ooo  stamp  duty  has 
been  paid  on  unissued  capita'.  The  balance-sheet 
shows  that  the  paid-up  capital  is  ;^2,ooo,ooo,  less 
;,^59,ooo  calls  in  arrears,  and  there  are  deposit  and 
other  accounts  for  ;^632,63o.  On  the  other  h.tnd,  cash 
balances  amount  to  ^^249, 360,  money  at  call  and  short 
notice  to  ;^590,qoo.  Treasury  bills  to  .-^1,575,000,  dis- 
counts and  advances  to  ;^i32,930,  and  premises,  &c., 
to  ;^5;920.  The  management  has  been  principally  en- 
gaged in  making  the  necessary  arrangements  for  re- 
presentation in  foreign  countries,  but  it  has  already 
been  able  to  render  some  assistance  in  connr^ction  with 
overseas  trade.  An  information  bureau  has  been  set 
up,  and  a  scheme  is  in  preparation  for  the  insurance  o'f 
commercial  credits.  The  proposals  with  regard  to  the 
remuneration  of  _the  managers  and  managing  directors 
will,  as  promised,  be  submitted  to  the  meeting  of  share- 
holders for  confirmation.  A  modest  start  has  been 
made,  and  the  further  progress  of  the  company  will  be 
watched  with  interest. 


In    confirmation    of   the   opinion   expressed   in    this 
week's  By-the-Way  War  Notes,  some  facts  quoted  in 
the  Times  from  the   IJtro  Rossii,   of  Moscow,  will  be 
seasonable.        In  the  Moscow  Food   Control    District, 
says  the  writer,  which   embraces   the  Governments  of 
Moscow,     Kaluga,    Vladimir,    Nigni-Novgorod,    Smo- 
lensk,   Tver,   Yaroslavl,    Kostroma,   and    Riazan,    only 
71,000,000  poods — a  pood  weighs  about  36  lbs. — of  rye 
and    wheat    were    harvested    last    year,     as     against 
165,000,000     poods      required    by    the    population    of 
18,000,000.     Allowing  only  |  lb.  (Russian),  or  11  ozs. 
I>er  head  per  day,  the  local  supplies  will  last  only  to  the 
middle  of  March,  new  style  ;  but  as  there  is  no  effective 
system  of  rationing,  and  as  millions  of  people  are  ex- 
ceeding  their  daiily    allowance,    the  local  supplies   will 
hardly  last  beyond  the  middle  of  the  present  month,  so 
those    18,000,000  of   people   can   only  be    saved    from 
starvation  by  the  import  of  grain  from  other  provinces, 
i.e.,   from  the   South.      Roughly,    the   writer  goes  on, 
90,000,000  poods  will  be  required  to  provide  bread  for 
the  people  until   the  next  harvest,  or  about  8,000,000 
poods  monthly.     The  experience  of  September  and  Oc- 
tober  last,  when   only  4,500,000  poods,    or   2,250,000 
poods  monthly,  were  shipped  from  the  South,  does  not 
warrant  any  hope  of  relief.      By   February,    when    the 
whole  of  the   supply  of  Bread   will  be  exhausted,   the 
people   will  hardly  have  }   lb.    per  head  per  day,  then 
"  King  Hunger  will  claim  millions  of  victims."     If  this 
be  anything  like  the  truth,  how  is  Russia  going  to  feed 
Germany? 


No   well-managed    bank   could    fail  to   make   money 
last  year,   and   the  National  Provincial   Bank  of  Eng- 


82 


^be  Jnvestore'  IRevtew, 


January  26,   1918. 


land,  Ltd.,  has  always  been  well  managed.  Its  nett 
profits  for  the  year,  including  j£g8,220  brought  for- 
ward, were  ;^36,7ii  larger  at  ;£^i,3i2,932,  and  the 
directors  continued  the  dividend  at  16  per  cent,  per 
annum  for  the  year,  the  last  half  of  which  is  payable 
on  February  5,  all  less  income-tax.  A  year  ago,  like 
other  banks,  the  National  Provincial  had  to  provide 
for  depreciation,  and  altogether  wrote  off  ;^6g8,ooo 
to  meet  it,  taking  ;^20o,ooo  from  the  reserve  in  order 
to  make  up  the  amount.  The  contrast  this  year  is 
great  and  cheerful  :  ;^30o,ooo  transferred  to  the 
reserve,  raising  it  to  ^^'2, 100,000,  and  in  addition 
^350,000  hidden  away  to  meet  contingencies,  or 
;^650,ooo  in  all,  appropriated  out  of  the  year's  revenue. 
This  is  ;^48,ooo  less  than  the  amount  taken  to  meet 
depreciation  a  year  atro,  but  the  balance  left  to  carry 
forward  is  ;^"84,7n  larger  than  it  was  then  at 
^182,932,  so  that  altogether  the  husbanding  has  been 
excellent.  Turning  to  the  balance-sheet — there  is  no 
profit  and  loss  account — we  find  the  liabilities  on  cur- 
rent, deposit,  and  other  accounts  larger  by 
;^i2,378,704  at  ^^i  12,597,468,  but  acceptances  and 
endorsements  are  ;^  1,049,288  smaller  at  ;£,"  1,982, 964. 
Cash  in  hand  and  at  the  Bank  of  England  is  up 
;^844,928  to  ;£,'i7,294,994,  and  the  floating  money  at 
call  and  notice  in  the  open  market  is  ^2,607,606  up 
at  ;^8, 100,946.  The  investments  aggregate 
;£j'42,i62,96o,  or  ;£,i,725,3i4  more  than  a  year  ago, 
and  of  this  total  no  less  than  ;^37,7i2,035  is  in  British 
Government  securities,  including  Treasury  bills.  Bills 
discounted,  loans,  &c.,  are  all  in  one  mass,  which  is 
^£'7.364,235  larger  at  ;^49.256,957-  The  total  of  the 
balance-sheet  is  ;^i  1,714,127  up  at  ;^i  19,863,365. 
For  the  first  time  the  amount  invested  by  the  National 
Provincial  in  joint  ownership  of  the  bank  established 
some  years  ago  by  Lloyds  Bank  in  France  appears  in 
the  balance-sheet,  and  is  ;^24o,ooo,  viz.,  12,000  ^50 
shares,  ;^20  paid. 


In  1916  Messrs.  Coutts  and  Co.  obtained  the  excep- 
tionally large  increase  of  ;^2, 800,000  in  deposit  and  cur- 
rent accounts,  and  this  has  been  followed  by  a  further 
expansion  of  ;^700,ooo,  raising  the  total  to 
;^i6,850,ooo.  Cash  has  risen  ;^ioo,ooo  to  ^^3,057, 000, 
and  money  at  call,  &c.,  ;^36,ooo  to  ;^3, 500,000,  while 
the  holding  of  Treasury  bills  is  half-a-million  up  at 
;£j^i, 740,000.  Discounts  and  advances  have  increased 
;^7oo,ooo  to  ;^5,843,oc)0,  but  investments  have  fallen 
;^625,ooo  to  ;^3,872,ooo.  The  total  of  the  balance- 
sheet  is  ;^"690,ooo  higher  at  ;^i8, 756,000,  ;ind  in  spite 
of  the  increasing  competition  of  big  rivals  with  numerous 
branches,  this  fine  old  firm  is  evidently  well  able  to 
hold  its  ground. 

In  the  past  half-year  the  Union  Bank  of  Manchester 
made  a  gross  profit  of  ;^i 60,600,  an  increase  of 
;^3i,500,  but  special  war  allowances  to  the  staff  re- 
quired ;^i2^500  more,  and  the  nett  profit  of  ^^96,920  is 
^19,000  higher.  The  amount  brought  in  was  less, 
and  the  balance  available  is  ;^2,ooo  down  at  ;^i  17,950. 
However,  the  dividend  is  raised  from  13s.  gd.  tax  free 
to  20s.  less  income-tax  at  5s.  Nothing  has  to  be 
written  off  for  depreciation  of  investments,  against 
;£730,ooo  last  time,  and  after  again  placing  ;^5,ooo  to 
premises  account  and  ;^5,ooo  to  pension  fund,  the 
balance  forward  is  increased  by  ;^i5,c)oo  to  ;^40,45o. 
Dejwsit  and  other  accounts  have  risen  two  millions  to 
:^i  1,127,000,  but  bills  accepted  on  account  of  H.M. 
Treasury  and  of  customers  are  ;^7oo,ooo  lower  at 
;^592,ooo.  Cash  in  hand  and  at  call  is  down  ;^330,ooo 
3t  ;^i, 715,000,  and  Investments  have  been  reduced  by 
half  a  million  to  ;^ri, 876,000,  but  Treasury  bills  are 
/"i, 650,000  up  at  ;^2, 150,000,  and  bills  of  exchange 
;^8o,ooo  at  ;£"955,poo.  Loans  and  advances  have  in- 
creased ;^645,ooo  to  :^4, 645,000,  in  addition  to  which 
■^468,000  has  been  advanced  to  take  up  War  Loan  and 
War  Bonds.  The  balance-sheet  totals  at  ;^i3, 01 2,000, 
an  increase  of  ^^1,500,000.  A  branch  will  be  opened  at 
Leeds  npxi  month,  this  step  havini?  been  contemplated 
by  the  Halifax  and  District  Banking  Co.  before  its 
amalgamation  with  the  Union  of  Manchester. 


Comparatively  little  change  is  shown  in  the  results 
of  the  Bradford  District  Bank,  Ltd.,  for  the  past  year, 
the  nett  profit  being  only  ;£r  1,200  higher  at  ;^7 1,680. 
\  year  ago  £^25,000  had  to  be  written  off  for  deprecia- 
tion, but  nothing  has  to  be  set  aside  on  this  occasion, 
and  after  again  paying  a  dividend  of  iis.  per  share, 
or  I3'2  per  cent.,  ;^'20,ooo,  against  ;£."io,ooo,  is  placed 
to  reserve  (raising  it  to  ;635o,ooo).  The  pension  fund 
and  bank  premises  fund  again  get  j^2,ooo  and  ;^5,ooo 
respectively,  and  ;^^9,ooo  more  at  ^38,080  remains  to 
be  carried  forward,  the  amount  brought  in  having  been 
;^8,200  less  than  last  year.  Deposit  and  other  accounts 
are  ;^i, 400,000  higher  at  ;^9, 235,000,  but  acceptances 
are  ;^7oo,ooo  lower  at  ;£J' 1 50,000.  Cash  and  money  at 
call,  &c. ,  have  increased  _^"300,oc)o  to  ;^2, 229,000,  and 
bills  (including  Treasuries)  ;^i, 300,000  to  ;^2,87i,ooo; 
but  investments  are  ;^i70,ooo  lower  at  ;^i,344,cioo, 
and  advances  _£^40,ooo  at  ;£73, 389,000.  The  balance- 
sheet  total  is  up  ;^7oo,ooo  at   ;^io,i42,ooo. 


In  the  half-year  to  .August  31  last  the  L'nion  Bank  of 
-Australia,  Ltd.,  made  the  handsome  gross  profit  of 
;^4i8,97o,  or  ;^28,ooo  more  than  in  the  corresponding 
period,  which,  in  turn,  recorded  an  increase  of  ;^36,ooo. 
Expenses  were  rather  higher,  and  the  nett  profit  comes 
out  ;^20,ooo  to  the  good  at  ;^i6o,370.  This  increase 
is  placed  to  reserve,  against  nil  last  time,  raising  the 
fund  to  a  round  two  millions.  After  repeating  the  divi- 
dend and  bonus  of  35s.  per  share,  or  14  per  cent,  per 
annum,  the  carry-forward  is  ^i,ooo  up  at  ;^73,500,  the 
amount  brought  in  being  so  much  larger.  Circulation 
,  has  contracted  ^'260,000  to  ^^363,000,  out  deposits  are 
;^i, 700,000  up  at  ;£"23,597,ooo,  and  bills  pay- 
able have  increased  ;£'45.ooo  to  just  over  two  millions. 
Cash  balances  are  ;£^ioo  higher  at  ;^4, 850,000,  and 
money  at  cal',  &c.,  has  risen  ;^68o,ooo  to  ;£,' 1,3 50,000. 
Investments  are  up  ;£786,ooo  at  ;£,'i,68i,ooo,  and  remit- 
tances, drafts,  &c.,  two  millions  at  ^^4, 272, 000,  but  dis- 
counts and  advances  have  fallen  ;^'i, 250,000  to 
;^i7,435,ooo.  The  total  of  the  balance-sheet  is 
;^;^500,ooo  higher  at  /'30, 175,000,  and  everything  has 
a  healthy  and  prosperous  appearance. 


Business  has  prospered  with  the  West  Yorkshire 
Bank,  Ltd.,  and  the  nett  profits  for  the  past  year 
amounted  to  ;^9i,7oo,  an  increase  of  ;^i6,ooo,  besides 
which  a  rather  larger  amount  was  brought  in.  The 
dividend  of  ;^i  6s.  8d.  per  share,  or  13*  per  cent.,  less 
tax,  is  repeated,  and  after  placing  ;^."30,ooo  to  reserve, 
against  ;£'20,ooo  written  off  for  depreciation  a  year  ago, 
the  balance  forward  is  increased  by  ;^8,400  to 
;^i8,750.  Last  year,  in  addition  to  the  sum  set  aside 
out  of  profits,  ;^50,ooo  was  taken  from  reserve  to  pro- 
vide for  depreciation.  Deposit  and  other  accounts  have 
increased  two  millions  to  j^'io,  175,000,  but  acceptances 
are  £rioo,ooo  less  at  ^^9,400.  Cash  has  risen  ;^40o,ooo 
to  ^,'2,140,000,  and  Treasury  bills  are  up  ;^i, 050,000 
at \;£' 1, 600, 000,  but  other  bills  are  /r20o,ooo  down  at 
;^^7io,ooo.  Loans  and  advances  have  increased 
;^8oo,ooo  to  ;^4,375'OC)o,  and  in\  estmenls  are  ;^i8,ooo 
less  at;^'2,o89,boo,  with  the  nett  result  that  the  balance- 
sheet  total  is  ;^r 1, 900,000  higher  at  ^^i  1,045,000. 


Special  interest  attaches  to  the  report  of  the  -Argen- 
tine Navigation  Co.  (Nicolas  Mihanovich),  Ltd.,  as  it 
is  the  first  issued  under  the  new  management,  and  it 
is  evident  reforms  of  a  sweeping  character  have 
already  taken  'place.  Nothing  is  said  about  these 
changes  in  the  report  except  the  bald  announcement 
that  Baron  F.  A.  d'Erlanger  and  Baron  H.  de  Pfeffel 
having  resigned  from  the  board.  Sir  Owen  Philipps, 
K.C.M.G.,  M.P.,  Mr.  T.  H.  Carlton  Levick,  and 
M.  Garston  Breton  have  been  appointed  in  their  place. 
Nett  profits  for  the  year  to  June  30  last  amounted  to 
^'i 25, 195,  an  increa.se  of  ;£745,ooo.  After  paying 
debenture  interest,  it  is  proposed  to  place  ,£^45,900  to 
reserve  (raising  it  to  ;^50,ooo),  and  to  pay  a  year's 
dividend  on  the  preference  shares,  bringing  payment 
up  to  December  31,  1914,  and  leaving  ;^io,8io  to  be 
carried  forward.     It  is,  however,  when  wc  turn  to  the 


J,\Ni;.\Rv  26,    1918. 


^be  Jnvestors'  IRevievv. 


83 


balance-sheet  that  we  find  most  of  interest.  Deben- 
tures which  stood  at  ;£^9i2,ooo  a  year  ago  have  been 
redeemed,  and  entirely  disappear,  and  the  deprecia- 
tion fund  of  ;t'53D,ooo  has  apparently  been  written  off 
the  fleet,  which  is  now  valued  ;^i,ioo,ooo  lower  at 
;^"i, 567,000.  Goodwill  at  ;;£,"i46,ooo,  and  debenture 
discount  at  ;^"30,ooo  have  also  disappeared,  and  the 
balance-sheet  now  totals  at  ;£,'2,437,ooo,  ag^ainst 
;^'3, 847,000  a  year  ago.  Smaller  changes  need  not 
detain  us,  but  they  are  mostly  in  the  right  direction, 
and  we  look  forward  to  the  company  regaining  its 
old  prosperity  in  a  relatively  short  time.  Sir  Owen 
Philipps'  speech  next  week  ought  to  be  very  illu- 
minating. — — — 

Marconi's  Wireless  Telegraph  Co.,  Ltd.,  has  issued 
a  circular  to  the  shareholders,  in  which  it  is  stated  that 
the  protracted  negotiations  with  the  Post  Office  in 
respect  of  the  damages  to  be  paid  for  the  repudiation 
of  the  Imperial  contract  in  December,  1914,  have  not 
resulted  in  producing  such  an  offer  as  the  directors  feel 
justified  in  accepting,  and  the  proceedings  in  the  High 
Courts  have  therefore  been  resumed.  With  regard  to 
remuneration  for  services  rendered  by  the  company, 
and  compensation  in  respect  of  the  wireless  stations 
taken  over  by  the  Government,  an  offer  was  submitted 
in  August  last  which  the  directors  considered  inade- 
quate and  unreasonable.  They  were  given  to  under- 
stand that  a  new  offer  would  be  submitted,  but  none 
has  yet  been  received.  Meantime,  it  is  stated  that  the 
other  business  of  the  company  during  the  past  year  has 
been  satisfactory,  and  the  directors  feel  justified  in 
declaring  an  interim  dividend  of  5  per  cent,  (actual), 
less  income-tax,  on  the  ordinary  shares.  It  seems 
extraordinary  that  while  money  is  being  squandered  in 
the  most  reckless  manner  the  Government  should  be 
so  reluctant  to  meet  its  just  obligations,  as  in  this  case 
and  in  those  of  the  commandeered  hotels,  Russian 
bills,  &-C.  The  attitude  taken  up  has  too  often  been 
anything  but  creditable  to  the  authorities. 


Freeman,  Hardy  and  Willis,  Ltd.,  the  well-known 
firm  of  Leicester  bc-otmakers,  have  had  another  very 
prosperous  year,  and  the  nett  profits  to  December  31 
amounted  to  ;^i 28,700,  an  increase  of  ;^io,7oo  over 
the  previous  12  months.  With  a  larger  amount 
brought  in  the  available  balance  is  ;!^"i 5,500  higher  at 
;^i86,ooo,  out  of  which  the  usual  dividend  of  i2j  per 
cent,  is  paid  and  the  bonus  of  5  per  cent,  is  repeated. 
Reserve  for  freehold  and  leasehold  premises  again  gets 
;^io,ooo,  and  reserve  for  contingencies  ;^5,ooo,  raising 
the  former  to  /.loo.ooo  and  the  latter  to  ;^4S,ooo. 
Bonus  to  the  staff  is  doubled  at  ^^Ti  1,250,  income-tax 
requires  ^4,500  more  at  £32,7^0,  and  after  allocating 
;^3,ooo  against  ,^^7,000  to  charities,  ;^io,5oo  more  at 
£(>7wOo  remains  to  be  carried  forward.  Stocks  are 
up  ;^72,ooo  at  ^^585, 000,  and  investments  ;^55,ooo  at 
;^20o,ooo,  but  cash  is  ;/r70,ooo  lower  at  ^"87,340; 
otherwise  the  changes  in  the  balance-sheet  are  unim- 
portant. It  is  a  fine  business,  well  and  prudently  man- 
aged. Conditions  have  been  exceptionally  favourable 
of  late,  but  the  directors  appear  to  have  made  sufficient 
provision  for  the  rainy  days  that  may  be  in  store. 

The  Kyshtim  Corporation  has  received  a  telegram, 
through  the  Foreign  Office,  that  the  property  of  the 
Russian  subsidiary,  the  Kyshtim  Mining  Works,  has 
been  confiscated  by  a  decree  issued  by  the  Bolshevist 
Government,  and  made  national  property,  as  has  been 
the  case  with  other  properties  in  Russia.  This  is  in 
accordance  with  the  Bolshevist  programme  that  all  pro- 
perty must  be  nationalised.  In  the  case  of  the  Kvshtim 
works,  the  reason  given  is  that  the  administration  have 
refused  to  accept  the  control  of  the  workmen's  com- 
mittees, which  would  have  left  the  management  with  one 
responsibility  only,  that  of  finance,  which  presumably 
meant  that  the  company  would  have  to  provide  what- 
ever funds  were  required  to  carry  on  the  business.  A 
formal  protest  has  been  lodged  through  the  British  Em- 
bassy at  Petrograd,  pointing  out  that  the  Kyshtim 
Works  have  been  built  up  by  British  capital,  and  that 
all  the  shares  are  British-owned.      It  can  scarcely  be 


expected  that  this  protest  will  have  any  effect  until 
some  sort  of  regular  Government  has  been  established 
in  Russia,  and  those  who  happen  to  hold  Russian  secu- 
rities have  merely  to  exercise  whatever  patience  they 
possess  pending  the  return  of  political  stability  to 
Russia,  which  will  bring  them  the  restoration  of  their 
property.  The  Irtysh  Corporation's  properties,  which 
arc  over  3,000  miles  from  Petrograd,  have  not  been 
"  nationalised  "  up  to  the  present,  but  the  "  nationalisa- 
tion "  of  the  banks  prevents  the  financing  of  operations, 
which  will  cease  when  present  supplies  are  exhausted. 


The  South  African  Government  has  taken  the  first 
definite  step  towards  providing  a  solution  of  the  diflfi- 
culty  which  confronts  certain  mines  on  the  Rand  owing 
to  the  increased  costs  of  labour  and  materials,  and  the 
scarcity  of  certain  supplies  which  prevents  them  work- 
ing at  full  capacity.  About  a  dozen  of  the  mines, 
having  only  a  low-grade  of  ore,  are  earning  so  little  per 
ton  that  no  dividends  are  possible,  and  the  question  of 
a  shutting  down  is  only  a  matter  of  time.  The  problem, 
which  has  to  be  faced,  is  that  of  gold  requirements  (k 
the  future.  There  is  no  doubt  that  steps  ought  to  be 
taken  not  only  to  maintain,  but  if  possible  to  increase, 
the  production  of  gold  in  order  to  strengthen  our  credit 
basis  after  the  war,  when  the  problem  of  an  adjust- 
ment of  the  foreign  exchanges  will  no  longer  be  pos- 
sible of  postponement.  It  is  understood  that  the  new 
Currency  and  Foreign  Exchange  Committee,  of  which 
Lord  Cunliffe  is  chairman,  will  discuss  this  question  of 
gold  production.  Meanwhile,  we  are  informed,  the 
problem  is  growing  in  urgency,  not  only  in  South 
Africa,  but  elsewhere.    

Another  fine  display  is  made  by  the  British-American 
Tobacco  Co.,  Ltd.,  for  the  year  to  September  30  last. 
It  is  stated  that  the  factories  in  England  have  been 
largely  employed  in  supplies  for  the  troops  abroad  at  a 
reduced  profit.  .Arrangements,  however,  were  made  at 
an  early  stage  in  the  war  for  a  large  increase  in  the 
output  of  the  American  factories,  the  production  from 
which  during  the  past  year  has  been  more  than  three 
times  greater  than  in  the  pre-war  period.  Even  so  the 
company  has  been  unable  to  fill  all  the  orders  for  its 
goods,  while  supplies  of  many  materials  are  difficult  to 
-obtain,  and  transport  facilities  have  been  very 
restricted.  Nevertheless,  nett  profits  amounted  to 
;£?3, 105,000,  an  increase  of  ;^37o,ooo,  following  a  gain 
of  ;^9oo,ooo  in  the  previous  12  months.  Tlie  directors, 
however,  are  content  to  repeat  the  dividend  of  30  pyer 
cent.,  and  to  increase  the  carry  forwaird  by  a  round 
million  to  1^2,526,700,  subject  to  excess  profits  duty. 
It  is  wonderful  business  with  a  balance-sheet  total  of 
21^  millions,  and  shareholders  need  not  worry  too  much 
about  the  fate  of  their  assets  in  enemy  countries. 


THE  LONDON  CITY  AND 
MIDLAND  BANK  Limited 

will  supply  all  information  respecting 

NATIONAL 
WAR  BONDS 

and  invites  investors  to  make  their 
applications  for  the  same  at  any  of  its 
offices  throughout  the  United  Kingdom 


HEAD    OFFICE:    5,  THREADNEEDLE     STREET, 
LONDON,    E.C.2. 


84 


"Q^be  Jnvestors'  TRcview. 


January  26,   1918, 


Volume  of  Trade  in   1917. 

In  some  of  the  principal  branches  of  our  foreign  com- 
merce it  is  impossible  to  follow  the  real  trend  of  trade, 
as  the  Crovcrnment  has  decided,  no  doubt  for  more  or 
less  sufiicient  reasons,  to  suppress  the  particulars  which 
would  enable  us  to  form  a  reasoned  judgment.  All 
details  with  regard  to  foodstuffs,  drink  and  tobacco, 
iron,  steel  and  other  metals  are  omitted  from  the 
monthly  Board  of  Trade  returns,  and  in  several  other 
respects  the  figures  are  not  so  illuminating  as  they  were 
before  this  embargo  on  information  was  imposed.  Even 
in  regard  to  stocks  in  bond  the  figures  for  sugar  have 
recently  been  withheld,  as  though  the  Food  Controller 
were  frightened  at  his  own  shadow  or  at  the  possible 
exposure  of  his  mal-administration  and  the  lack  of 
justification  for  his  sugar  rationing  scheme.  In  the 
accompanying  table  we  show  the  quantities  and  value 
of  the  principal  items  of  imjx)rts  and  exports  last  year 
compared  with  191 5  as  a  rough  guide  to  the  real  volume 
of  our  trade.  Before  dealing  with  these  figures  it  may 
be  useful  to  give  the  totals  of  the  four  groups  under 
which  our  foreign  commerce  is  classified  :- 


Imports. 

Exports. 

1917. 

Compared 
with  1915- 

1917- 

Compared 

with  IQ15. 

435.311.963 

,  3H5.374.019 

218,481,514 

6,085.911 

£ 
+  74.437,402 
+  98.804,468 
♦  37,o34,2g6 
+    3,086,891 

l                  £ 

Raw  materials    

67.367,430  +  15,013,390 

Parcel  post,  &c 

19,968.066  !+     5.462,112 

1,065,256,407 

+  213,363,057 

525,30tJ,99t    +140,440.543 

It  will  be  seen  that  1915  was  apparently  a  much  worse 
j'ear  than  191 7,  but  we  have  chosen  it  for  comparison 
because  it  was  the  first  complete  year  of  the  war,  and 
because  the  advance  in  prices  was  relatively  small.  At 
the  beginning  of  the  year  the  rise  in  retail  prices  was 
only  18  per  cent.,  as  compared  with  July,  1914,  and  at 
the '  end  it  was  45  per  cent. ,  which  may  be  regarded 
as  moderate  in  the  circumstances.  At  the  same  time, 
trade  had  not  had  time  to  recover  from  the  first  shock 
of  the  war,  and  the  inflation  created  by  a  huge  and  in- 
creasing expenditure  had  not  begun  to  have  much 
effect. 

.  Starting  from  this  point  of  view,  the  figures  given 
are  well  worth  study  in  detail.  The  movement  of  goods 
about  which  information  is  suppressed  may  easily  be 
deduced  from  the  other  particulars  available.  Taking 
imports  first,  it  will  be  noticed  that  only  three  items — 
petroleum,  zinc,  and  motor  chassis — show  increases  in 
volume,  whereas  only  a  dozen  out  of  three  dozen  show 
decreases  in  value.  Hewn  wood  has  fallen  55  per  cent, 
in  amount,  but  only  30  per  cent,    in  value,   while  the 


Va 

ue.  . 

1917. 

Compared 
with  1915. 

£ 
174,893,000 

102,472,000 

96.775.000 

77,268,000 

3,903,000 

£ 
+  62,535,700 
+  15.633.000 
-1-  5,315,000 

—  4,400,000 

—  4.646,700 

Meat    

Do         dutiable    

Tobacco 

position  with  reg^ard  to  sawn  wood  is  worse,  a  drop  of 
80  per  cent,  in  quantity  being  accompanied  by  a  decline 
of  only  20  j>er  cent,  in  cost.  Of  raw  cotton  we  received 
40  per  cent,  less,  but  it  cost  us  70  per  cent,  more,  and 
30  per  cent,  less  wool  advanced  ;^7, 700,000  in  value. 
Half  the  quantity  of  flax,  hemp,  and  jute  cost  nearly 
30  per  cent,  more,  and  the  value  of  cottonseed  and  lin- 
seed was  about  the  same  for  considerably  less  than  half 
the  amount.  We  paid  55  per  cent,  more  for  about  the 
same  quantity  of  oil  nuts,  but  the  increase  in  the  cost 
price  of  petroleum  appears  comparatively  reasonable, 
and  it  is  difificult  to  understand  whv  the  profiteers  should 
have  such  a  free  hand  so  far  as  the  unfortunate  con- 
sumer is  concerned.  Wood  pulp  fell  60  per  cent,  in 
amount,  but  increased  80  jx^r  cent,  in  value,  while  paper 
imports  fell  80  per  cent,  and  the  value  nearly  40  per 
cent.  For  680,000  tons  less  iron  and  steel  the  cost  was 
practically  the  same,  and  almost  at  every  point  a  similar 
state  of  affairs  exists.  It  is  evident,  however,  that  in 
most  cases  the  advance  in  retail  prices  is  to  a  very  large 
extent  warranted  by  the  increase  in:  wholesale  costs, 
and  except  in  a  few  instances  profiteering  is  not  so 
rampant  as  Is  generally  supposed. 


However,  if  we  have  had  to  pay  much  higher  prices 
f(>r  the  goods  we  purchased  from  abroad  we  have  been 
able  to  pass  oji  a  good  deal  of  the  extra  cost  to  our 
foreign  customers.  Among  exports,  where  quantities 
are  available,  considerably  more  than  half  show  de- 
creases, but  in  the  case  of  values  three-fourths  have 
advanced.  Shipments  of  spirits,  for  instance,  were  35 
per  cent,  smaller,  but  they  realised  23  per  cent.  more. 
Tobacco  did  not  do  quite  so  well,  but  for  24  f)er  cent. 
less  amount  the  value  was  only  13  per  cent,  lower. 
Coal  and  coke  .show  a  decrease  of  17  per  cent,  in 
quantity,  but  the  price  advanced  32  per  cent.  Not 
much  more  than  half  the  amount  of  wool  was  exported, 

IMPORTS. 


Wood,  hewn loads 

Do.    sawn,  &c , 

Cotton centals 

Wool Ibf, 

Flax  hemp,  and  jute  . , .  .tons 

Cottonseed , 

Linseed qrs. 

Oil  nuts    toHF 

Petroleum gals 

Tallow    cwts. 

Hides,  dry    ,, 

Do.    wet   „ 

Sheepskins lbs. 

Wood  pulp tons 

Rubber   centals 

Iron  and  steel tons 

Copper  (uDwroBght) , 

Lead , 

Tin „ 

Zinc  J.... , 

Tools,  Ac 

Watches   No, 

Machinery  tons 

Yarns  and  fabrics , 

Chemicals,  dyes, &c.  ..^ 

Leather cwts. 

Paper ,, 

Motor  car  ch  <ssis No 

Do.         parts ,, 

Oil-cake   ton 

Paraffin  wax cwts. 

Starch,  &c „ 


Quantiiies. 


191 7. 


1^049.150 

J  700,000 

16,231.700 

625  628  O'O 
3I<,I2 

2iq  oo( 

1,016,000 

447,(00 

826,835.000 

6i:,oof 

711,900 

91 ',300 

32.584  000 

386,900 

1,756  600 

497,000 

142.800 

147  120 

127 

76,100 

3,922,000 
72,000 


652.500 
2,792.000 

4.930 


Compared 
with  iq  ■:. 


I, .441, 80 
2-945  700 

—  10,244,400 
— 300,752,000 

—  312070 

—  275  500 

—  1,11040 

—  60 
+  238.365.000 

—  1,025,'  00 

—  21,100 

—  165.700 

—  54,934  000 

—  567.  »oo 

—  4-200 

—  680.500 

—  37,600 

—  106,800 

n.750 
+  2.600 

—  886.000 

—  x8,ooo 


—  894,000 
-  8,934,000 
+  1,100 


212900—  212.200 

1,453.000  —  390,000 

1,600  000'^  262,000 

EXPORTS. 


19 1 7. 


Value.  £. 

Comparted 


wiih  'O15. 


Grain  and  flour 

Meat    cwts. 

Beer barrels 

Spirits gaU 

Tobacco    lb--. 

Coal  and  coke    tons 

Wool lbs, 

Tallow,  &c cwts. 

Seed  oils tons 

Iron  and  steel    ,, 

Tin    

Cutlery  cwts 

Hardware „ 

Implements,  &c 

Apparatus 

l>o.    Electrical 

Machinery   tons 

Ships ,. 

Cotton  yarn lbs. 

Do.  pit ce  goods.. 1,000yds. 

Do.   thread   lbs. 

Do.  lace,  &c 

Wool  and  yarn    lbs. 

Do.     tissues   yds. 

Worsted  do ,, 

Silk  stuffs    „ 

Jute  piece  goods „ 

Linen,  yarn lbs. 

Do.  piecegoods   yd&. 

Apparel 

Boots  and  shoes    doz, 

Hats,  &c ,, 

Chemicals,  &c 

Manures  tons 

Colours,  &c cwts. 

Soda  ash.  &c ,, 

Medicines 

Leather  goods    

Earthenware    cwts. 

Glass 

Paper cwts. 

Motor  cars.  &c 

Ammunition,  &c 

Sacks doz. 

Books,  printed cwts. 

Cement tons 

Conlage   cwts 

Oilcloth    y«  s 

Soap    cwts. 




— 

28,500 

—       231.000 

282.900 

—       250.400 

5.755.100 

—    3.157100 

27,628, 60 

-    8551,000 

37,800.000 

—    8,000,000 

26,620  000 

—  24,180,000 

725700 

4-          110,300 

47.400 

—           388.0 

2,329,000 

—        868,000 

'9.300 

+               5.120 

26651 

—              5.230 

280,500 

—         902,400 

— 

— 

— 

— 

265.200 

—        68,100 

26  20' 

—         52, '0< 

J33,H3,ooo 

—  55,016,0  0 

4,979077 

+       230  6  0 

22,412,600 

t    1,51^,300 

38  060, ro- 

4-         60,0c  0 

122,928,000 

+  30,600  000 

42,717,70' 

—  13,052  000 

7.773.00. 

—    1,763.000 

126,280,000 

*   17,124.0,0 

18  357.000 

+  11,941  000 

103,637,000 

—  25,140,000 

1,153.000 

-       155.200 

750,00. 

—         200,CKX) 

95.400 

—        44   .200 

1,138,800 

540,000 

5,316,000 

—   2,202,000 

1,729,000 

—     732.000 

9i6,(x.o 

—  1,838,700 

3.M4.30C 

-  1,097,300 

3l*,20a 

—       91,600 

357.700 

—      66,800 

263,500 

-     9900 

22,471.00c 

—   8.429  000 

.    2,534,700 

4.      622  600 

5  I2Z,20O  — 

i7,b88,ooo  — 

110,590,00    + 

49.7-5.30^  + 

25,786  200  + 

4,(02.r  00  — 

5,^08,000  — 

12,621  000 

33,89^,000  + 

1,812,500  — 

5,174.000  + 

6,584.000  + 

2,060,60c  — 

9  516,000  + 

23,795,000  + 

10,803,000  — 

18,835,000  4- 

4,508,000  + 

6,197,500  — 

4  15^,000  4- 

1,644  0*0  4- 

1.086  000  4- 

8,863,000  > 

2^,667,000  — 

28  040,000  ♦ 

10,545  600  — 

4,190.3^  — 

3,142  000  4- 

3,340,OfO  — 

3,638,000  4- 

2,i07,0<  o  -1- 

2,973,000  4- 
875,000 

226,f>O0 

1,420, 00( 
4,601.600 
3,270,500 
51,341.0c  0 
3,125,000 
1.875,00 

2.886,6<oc 
44i849.oco 

4,228,70c 
565,000 

I,I52,OOf 

1,878,60 
1,038,70c 
2,952.700 

i9,426,oo( 
1,086,20 

;6,7o8,'X)C 
Ii2,j88ooo 
5,588,  00 
3,(90,000 
8,222  000 

29.200.000 
7,440,700 
1.212,000 
3,7og,oo« 
2,317, 3C0 
5,997,000 
7,589,000 
6,873.50c 
1,304,600 
7,295,coo 
1.50^,000 
3,810,0-  o 
2.615,300 
3.235  ^ot 

4.952,00 

2,/oS,6oc 
1,188,700 
3.193  o« 
6,840,00c 
29,44'  ,oco 
I  403.000 
2,207,50' 
1,134,000 
1,-37,000 
1.784,000 
4.864  OcO 


2,111,700 

4,062,000 

4  919,000 

7,695,000 

6,343.000 

120.400 

65000 

4,59i/»o 
20,593,000 

974.000 
1,674,000 
1,608.400 

506,000 

4,2<  -4 .000 
4,191,000 

3  006 

5.n  000 

1,109,000 
107.000 
178,0^0 

X. 035, 000 
167,500  ■ 

1^.400 
9,293,000 

8.711,0  X»  ■ 

5,114.000 

2,457.000 

3,007  000 

828000 

365000 

975.000 

1,625,000 

2,984.000 

1,058,600 
517.200 
877.503 
498,'  00 
12,517.000 
480.000- 

1,075.000 
167,000 

4,442.500 

i,9io,coo 

9000 

146,(00 

274.000 

500000 

si6  000 

2  2,000 

6>.6  400 

6,iro,ooo 

48  096.000 

2,236,300 

1,014  300 

3,245  'oo 

12,720,000 

1.347,500 
3.0 « 00 
6  9(O0 

1.78.  600 

1,062,000 
964  500 

3  i55.i«> 
44.OCO 

2,770,000 

3.304.200 
137..  00 
611,000 
1 58,  soo 

1,154,000 
654.2  o 

•5. coo 

198,000 
263.*  00 

22,&28,000 
72,lCO 

33.««> 
30.^,400 
259,000 
218.5(0 
«  357 .OCO 


but  the  value  fell  only  13  per  cent.  Iron  and  steel 
shipments  declined  868,000  tons,  or  2.7  per  cent.,  while 
the  value  rose  13  per  cent.,  and  another  conspicuous 
case  is  that  of  cotton  yarn,  which  dropped  nearly  30 
per  cent,  in  amount,  but  fetched  62  per  cent.  more. 
On  the  other  hand,  sales  of  cotton  piece  g^oods  increased 
230  million  yards,  or  5  per  cent.,  and  the  value  48 
millions,  or  nearly  75  per  cent.  Similar  results  are 
seen  with  regard  to  other  textile  materials,  but  linen 
piece  goods  fell  off  16  per  cent.,  while  the  value  rose 
20  per  cent.  Boots  and  shoes  almost  doubled  their 
price,  and  chemicals  were  sold  for  60  per  cent,  more 
money.      Exports  of  manures  dropped  to  a  mere  frac- 


January  26,   1918. 


Zbc  3nve8toc8'  TReview. 


tion  of  the  1915  level,  and  the  quantity  of  soda  com- 
pounds fell  35  per  cent.,  but  realised  30  per  cent.  more. 
As  might  be  expected,  owing  to  the  shortage  of  raw 
materials,  paper  exports  declined  67  per  cent.,  but  the 
remaining  third  brought  in  6  per  cent,  more  money. 
Oil  cloth  fell  27  per  cent,   in  quantity,  and  advanced 

14  per  cent,  in  value,  while  there  was  the  substantial 
increase  of  over  30  per  cent,  in  soap  exports,  and  the 
price  rose  nearly  100  per  cent. 

It  becomes  evident  from  these  figures,  and  the  others, 
given  in  our  table,  how  serious  has  been  the  shrinkage 
in  the  volume  of  our  overseas  trade.  The  actual  posi- 
tion is  to  a  large  extent  concealed  or  misrepresented 
by  the  advance  in  prices.  Taking  values  alone,  there 
was  an  increase  in  Imports  last  year  of  213  millions 
over  1915,  and  an  increase  in  exports  of  140  millions, 
but  quantities  are  lower  in  the  majority  of  cases  where 
they  can  be  tested,  and  it  is  fair  to  assume  that  the 
rule  applies  all  round.  Of  course,  the  falling  off  is  in- 
evitable in  the  circumstances,  and  perhaps  we  ought 
to  be  grateful  that  it  is  no  worse,  but  few  people  prob- 
ably have  realised  that  with  the  exception  of  the  textile 
industries  almost  all  branches  of  trade  have  declined 
heavily  since  1915,  which  was  not  by  any  means  a  good 
year.  Meantime,  in  spite  of  getting  handsome  prices 
for  our  exports,  the  adverse  trade  balance  grows  apace. 
\t  was  470  millions  last  year,  and  since  191 5  it  has 
iTOon-nted ,  to.  over.  1,180  million-s.     To  what  extent  this 

15  covered  by  obligations  incurred  by  the  Allies  it  is 
Imnossible  to  say,  but  the  total  in  any  case  is  a  formid- 
able one,  and  we  shall  have  to  retrench  severely  to 
bring  the  balance  within  more  reasonable  compass. 
However,  that  is  a  problem  for  the  future  rather  than 
the  present,  but  it  mav  be  just  as  well  to  bear  in  mind 
•when  considering  the  apparently  marvellous  prosperity 
of  our  overseas  trade  that  it  is  mainly  due  to  the  tem- 
porarv  inflation  in  prices,  and  not  to  the  larger  busi- 
ness done  bv  our  merchants  and  manufacturers. 


The  Largest  Bank  in  the  Wopld. 


■  Ljist  yter  ■  the '  directors  of '  t'tte  London  City  and 
Midland  Bank,-  Ltd.,  bought  up  the  Belfast  Banking 
Go.,  an  old  and  rich  bank  in  the  North  of  Ireland. 
That  has  led  to  some  increase  in  the  paid-up  capital,  as 
is  explained  in  the  report.  The  whole  of  the  200,000 
shares  issued  by  the  Belfast  Banking  Co. — £^2  los. 
each,  £2  los.  paid — were  acquired  for  ;^i,225,9o8,  and 
the  purchase  has  been  paid  for  by  an  issue  of  163,219 
shares  of  the  London  City  and  Midland  Bank,  ;^i2 
•each,  £2  los.  paid,  the  price  paid  for  the  Belfast 
Banking  Co.'s  shares  being  ;^7  los.  each.  The  pay- 
rftent  incltided '}^,7B5  ibs'.  additional  in  dash.  By  this 
transaction  the  capital  of  the  London  City  and  Midland 
has  been  increased  by  ;^4o8,047  los.,  ahd  the  reserve 
by  ;^342;826,  so  that  the  bank's  paid-up  capital  is  now 
jCs,  188,840  and  the  reserve  ;^4,342,826.  The  remainder 
of 'the 'premium,  received,  viz.,  ;^473,269,  has  been 
applied  to'  write  down  the  balance-sheet  cost  of  the 
Belfast,  Bank  shares  to  ;^752,639.  This  is  all  clear 
enough,  but  the  acquisition  of  this  fine  business  by  no 
means  accounts  for  an  increase  of  ;^45,g3i,043  in  the 
current,  deposit  and  other  accounts  of  the  London  City 
and  Midland,  Which  have  now  reached  the' unexampled 
totpT  of  .;^22o,55i,768.  The  last  accounts  we  have  of 
the  Belfast.  Banking  Co.  show  deposits  of  ;^7,ooo,ooo 
or  so;. .how,  then,  has  the  London  City  and  Midland 
expanded  so  wonderfully  within  a  year? 

It  is  chiefly  no.  doubt  the  result  of  th^  patriotic 
liberality  with  which  its  board  has  come  to  the  help  of 
the  Government  by  aiding  its  custorners'to  subscribe 
to  war  debts.  Well  njay  the  directors  pride  themselves 
on  the  fact  that  they  enabled  their  clients  to  appl.y  for. 
the  War  Loan  .i.ssu'ed  early  last  year  to  the  extent  pf. 
;^86,ooo,ooo.  In  Addition,  they  helped  them  in  ex- 
chang-ine  ;^7^ooo,6oo  of  Treasury  bills  for.  War  Stock, 
so  that  in  all  ;^g3,ooo,(?oo  of  the  Loan  was,  subscribed 
bv  the  hejp  and  thr.ough  the  agency  of  .the  bank.  I.t 
advanced  no  less  thaa  ;£^26,.8i3',9po  to  its  cystorners' 
to  apply  for  the  stock,   and   already  ^14,167,000   of 


these  advances  have  been  repaid,  leaving  ;^i 2,645,539 
still  due,  a  sum  which  has  been  entered  as  a  separate 
item  in  the  balance-sheet.  Advances  qn  current  account 
and  other  loans  are  also  ;^4,64i,5oi  up  at  ;^68, 5 10,358, 
and  there  is  an  increase  of  ;^'i, 606^086  in  the  cross  entry 
"  acceptances,"  raising  it  to  ;^"8,826,866. 

This  latter  increase  leads  us  to  infer  that  the  general 
business  of  the  company  has  also  sensibly  expanded, 
and  its  bills  of  exchange  support  and  confirm  this  in- 
ference, for  their  total  is  now  '  ;^35,o52,992,  or 
;^i  1,716,175  more  than  they  stood  at  a  year  ago,  and 
no  less  than  ;^25, 616,000  above  the-  figure  of  tivo  years- 
ago.  .  These  are  all  remarkable  changes,  and  other 
figures  are,  if  not  so  progressive  in  appearance,  equally 
striking  in  their  irripressiveness;  'Thus  cash  in  hand 
and  at  the  Bank  of  England,  an  entry  which  includes 
;^7,ooo,ooo  of  gold  coin,  &c.,  lodged  there,  although 
;,£,"3,863,28o  smaller  than  at  the  end  of  1916,  is.  still: 
;^44,i  16,353,  and  no  less  than  ;^3i,oo3,56o  is  floating' 
money  which  the  bank  has  Out  in  the  market  at  call 
and  short  notice.  This  is  an  advance  of  ;^22,i59,i82 
upon  the  year.  The  general  list  of  investments  held  by 
the  bank  is  ;^935,483  down,  which  is  not  much  on  an 
aggregate  still,  ^36,254,813,  the  biilk  of  which,  how- 
ever, is  in  War  Loan  and  other  British  Government 
securities,  which  form  ;^33j"6,534  of  the  total:  The 
decrease  in  the  aggregate  is  a  mere  ;^283,ooo.  Bank 
premises  have  increased  in  book  value  ;£83,485  and 
stand  at  ;^2,837,2io,  and  the  aggregate  of  the  balance- 
sheet  is  ;^48,855,792  larger  at  ;£239,994,332. 

We  have  left  the  question  of  profit  to  the  end  be- 
cause we  regret  to  say  the  board  of  the  London  City 
and  Midland  is  not  so  up  to  date  in  framing  its  balance- 
sheet  as  some  of  its  neighbours.-  The  greatest  of  its 
neighbours,  indeed,  now  give  their  gross  profits,  and 
reveal  on  the  other  side  the  proportion  of  these  profits 
absorbed  in  interest  payments  on  customers'^  balances, 
working  expenses,  rebate,  and  so  forth,  but  Sir  Edward 
Holden  (sticks  to  the  old  conse^•vative  ways,  and  conse- 
quently Jrifett -profit  alone  is  entered.  At  ;^i, 967.716  it 
Shows  aa- increase  of  ;£330,747  on  the  yfe^r.  The 
balance  of  .;£243,538  brought  forward  was  also 
;£;i29,940  better,  consequently  the  distributable  aggre- 
gate of:  p£:2, 21 1,254  is  ;f 460,688  up.  This  greater 
riches  does  not  prompt  to  extravagance,  the  dividend 
remains  at  18  per  cent,  per  annum,  less  tax,  the  second 
half  being  payable  on  the  ist  prox.  Then  ;^soo,ooo  is 
put  aside  to  a  reserve  for  contingencies,  which  com- 
pares with  ;^'632,soi  placed  to  an  investment  account  a 
year  ago,  so  that  apparently  less  money  is  really  laid 
by,  but  that  is  not  so.  In  a  very  praiseworthy  fashion 
the  board  continues  to  pay  salaries  and  bonuses  to. 
members  Of  the  staff  serving  with  his  Majesty's  forces, 
and  also  bonuses  to  other  members  of  the  staff.  These 
last  year  took  ;(f 304,5 19  altogether,  or  ;^96,5i2  more 
th^n  a  year  ago,  but  the  balance  .left  to  carry  forward 
is  ;i^'490,247-  larger  at  /,'733,785,  so  that '  the  la.rger 
revenue  has. been  kept  in  hand  and  more,  not  utilised 
to  give  a  larger  income  to  the  shareholders,  and  .that 
is  well,  for  the  times  that  will  come  after  the  war  are 
going  to  try  banks  in  various  ways  now  hidden. 
Therefore  the  more  they  can  .store  away  out  of  .sight 
while  the  money  flows  in,  the  more  serenely  can  their 
boards  and  managers  contemplate  the  severe  3nd"pTO^ 
bably  tempestuous  weather- looming  ahead..    >       '•    • 

SOUTH    MANCHURIAN     RAILWAY    CO.,    LTD., 
5   PER  6ENT.   STERLING  BONDS. 


•  NOTICE  IS  HEREBY  GIVE^(  that  the  COUPONS  due 
3th  iFebi|uary,  IQl-S,  "will  be  "PAID- -on  and.  after  that  date' 
(Saturdays  excepted),  between  the  "hours  of  11  and  3,  by  the 
Yokohama  Specie  Bank,  Ltd.,  where  lists  may  be  obtained.   ' 

Coupons  must  be  left  three  clear  days  for  examination  prior  to 
their  payment. 

For  the' Vokohama  S'peci?  Bank,"  lltd.,"' 

•■•;".     '  k' tXtSUMI.^  Main^er. 

;'7,.Bishopsgate,^E.(i,,2.  .  _    '       "    -   '  ',    . 

'    21sf  Jamiary,"  1918".    '  '      ' 


86 


Zbc  5nve8tor8'  TReview. 


January  26,    1918. 


Home  Railway  Yields. 

Apart  from  one  or  two  bursts  of  activity,  the  market 
in  Home  Railway  stocks  ba3,  considering  the  im- 
minence of  the  dividend  declarations,  been  surprisingly 
quiet.  The  fact  is,  the  future  is  so  wrapped  in  ob- 
scurity that  many  investors  do  not  feel  disposed  to  in- 
terest themselves  in  Home  Railway  stocks  until  the 
outlook  is  less  uncertain.  Wliile  tlie  existing  arrange- 
ment with  the  Government  .is  in  force,  shareholders 
are,  of  course,  in  the  least  favourable  contingency, 
likely  to  continue  to  receive  the  present  rate  of 
dividend ;  but  what  is  to  happen  when  the  agree- 
ment ternvnates?  AVill  the  Government  bring  for- 
ward a  nationalisation  scheme,  or  will  the  com- 
panies,  b^  left  free  to  operate  as  before?  It  is 
estimated  that  if  wages  are  maintained  at  their  pre- 
sent level  without  any  corresponding  increase  in  freight 
rates,  they  will  absorb  practically  the  whole  of  the  re- 
venue available  for  ordinary  dividends.  Clearly, 
something  will  have  to  be  done,  and  the  nature  of  it 
should  not  be  left  to  conjecture,  although  we  may  sug- 
gest that  after  the  war  labour  will  not  have  the  whip- 
hand  which  it  enjoys  at  present. 

.  In  some  quarter.s  the  view  has  been  expressed  that 
several  of  the  coming  dividend  declarations  are  likely  to 
be  at  a  slightly  enhanced  rate,  but  this  remains  to  be 
seen.  We  know  that  in  the  ca.se  of  several  of  the 
bigger  undertakings  large  sums  have  during  the  last 
few  yeans  been  placed  to  reserve,  and  that  the  income 
received  by  most  companies  from  interest  on  the  in- 
vestment.of  deferred  renewal  funds  reaches  a  substan- 
tial figure.  But,  if  anything,  the  companies  will  be 
obliged  to  be  more  prudent  in .  conserving  resources 
even  than  in  the  past. 

VVe  show  below  dividends  paid  upon  twelve  repre- 
sentative home  railway  stocks  during  the  last  four 
years,  together  with. the  percentage  of  earnings  avail- 
able for  the  dividends  in  1916  : — 


Stock. 


North-Eastern  ord 

Lanes,  and  Yorks.  ord... 

Midland  def.    ....■ 

London  and  N.-W.  ord. 

Great  Western  ord 

London  and  S  -W.     ord. 

L.B.  and  S.C.  ord 

Sonth-Eastern  ord 

Great  Eastern  ord 

Great  Northern  def 

Great  Centralf    

N.  London  ord 


V     Dividends  Paid. 

igit. 

% 

1912. 

1913. 

% 

1916. 

%' 

% 

5j 

6 

7  . 

6* 

48' 

4* 

4* 

4* 

^i 

3i4 

<4i 

■  4 

(>i 

6*. 

7 

6 

5S 

,   5ft 

6i 

5S 

6 

53  ■ 

5?  ■ 

5* 

.5S 

5 

5i 

5 

4 

3* 

4 

3S 

.3« 

21. 

24 

24 

2i 

2i 

3 

24 

^ 

nil 

2 

2 

4i 

4l 

4l 

3l 

\pproxi- 
■  mate 
Earnings 
on  Stock, 
iqi6, 

~%~~ 
7-3° 
4  50 

4  55 
6.60 
6.40 
5-65 
4.90 
4.00 

2-45 
2.60 
2.03 
4.10 


t  1894  5  per  cent,  preference. 

Allov^ing  for  the  fact  that  pre.<iieiit  prices  are  "  full '.', 
of  dividend,  most  of  the  stocks  give  a  very 'substantial 
return,  t^ie.  average  yield  coming  out  at  as  much  as 
£6  i8s.  per  cent..  Below  we  give  prices  and  yields  for 
1917  and   1914  :- —  .    -     • 


,     191+- 

■    Wt7-     ■ 

.     .    Ordinary  Stock. 

Mean 
.  Price 
Jan.  19. 

'  Yield 
% 

Mean 

Price 

Jan.  _i8'. 

"Yield   ' 

North-Eastern  cbnsoi.  ord.  . . 
Lanes.  cS:  Yorkshire  con.  ord. 

Midland  def 

London  and  IJ.-W.  .con. -ord. 

Great  Western  con.  ord 

London  and  S.-W,  con.  ord. 

L.  B.  and  S.C.  Rly.  ord 

South-Eastern  ord. . , . '. 

■  1*48 
86 

74J 
I32i 

ii6 

^0 
108  . 

49f 
55? 

894 

^s^d. 
5  16    0 
580 
5  18    0 
590 
5  12     0 
.500 
51'" 

4  13     0 
550 

5  12    0 
300 
590 

98 

66 

584 

924 

86 

76 

57 

36! 

37!- 

344 

574 

/s.    d.. 

6  18     0 
730 

7  3    o- 
6  15     Q, 
700 
6  18     0 
6  ig    0 

6  ig    0 
750 

7  I  -  0 

Great  Eastern  ord 

Great  Northern  def;  '; .  .• 

Great  Centralf    .    

North  London  ord 

6  14     0 

5     3     6 

6  18     tf 

t  1894  5"per  cent,  second  preference  stock. 

The  return  on  preference  stocks  is- necessarily  smaller, 
but  it  ranges  from  £^  8s.  on  North-Western  4  per 
cents,  up  to  j£6  5s.  on  Great  Eastern  .4^ per  .cept^. , 
and   the  average   works   out   at  '^^5    15s.    as   against 


;^'4  8s.  at  the  beginning  of  191 4.  In  the  case  of 
debenture  stocks  the  yield  ranges  from  j^^  iSs.  on 
Midland  2^  per  cent,  and  North-Western  3  per  cent, 
up  to  ;^"5  16s.  on  Great  Central  5  per  cent.,  while  the 
average  is  ;^5  4s.  6d.  against  ;^3  igs.  6d.  four  years 
ago.  Below  we  summarise  the  average  yields  of  the 
twelve  representative,  securities  : — 


Year. 

,    Yield  ^ 

%  on 
Consols. 

Yield %.on, Average  Yiel^  %  on  I2  Kepresen- 
'    5i'    ,        tative  Home  Railway  Stocks. 

War-Loan.  Debenture 

l^reterence 

Ordinary. 

1914    .... 
1917    •••• 

.3,4<^ 
4.6s 

,      -               398 
5-39             522 

4-15 

5  75 

,5.18 

6  QO 

The  following  statement,  which  expresses  the  yield 
on  Consols  by  100,  and  the  return  on  the  twelve  repre- 
sentative railway  debentures,  preference  and  ordinary 
stocks  by  proportionate  index  figures,  is  interesting  : — 


Year. 

Consols. 

Debentures. 

Preference. 

Ordinary. 

1914    

1917    .. 

100 
100 

11705 
112.25 

122.05 
123.65 

152.35 
148.38 

Year. 

War  Loan. 

Debentures. 

Preference. 

Ordinary. 

1  •■        12B  ' 

1917    ••■••• 

100 

96.85 

106.65 

It  will  be  seen  that  on  the  basis  pf  the  Cons(>ls  index 
figure,  those  for  the  twelve  representative  railway, 
stocks  show. a  higher  relative  valuation  in  i9i7.than  in 
1914,  but  in  the  case  of  the  preference  stock  the  rela- 
tive market  valuation  is  slightly  above. that  of  1914., 
It  is  evident,  however,  that  the  yield  on  War  Loan  "s 
the  truer  index  to  Stock  E^xchange  values,  and  if  we 
express  the  yield  by  the  index  figure  of  100,  a  very 
different  position  becomes  apparent.  Here  the  relative 
stock  market  values  of  the  railway  stocks  are  all  seen 
to  be  higher  in  1917  than  in  1914.  This  is  particularly 
so  with  the  debentures,  whose  average  market  valua- 
tion is  actually  larger  than  that  of  the  \\  ar  Loao. 


By-the-Way  War  Notes. 

Is  peace  going  to  come  back  to  mankind  through 
famine?  Perhapvs,.  nay,  we  almost  begin  to  believe 
that  it  may.  What  is  now  occurring  within  the  Austro- 
Hungarian  Empire,  and  probably  tc  a  less  degree  in 
Germany,  seems  rather  to  herald  the  overturn  we  have 
long  been  looking  for.  Hunger  gnawij  at  the  vitals  of 
their  populations,  and.is,  di^iving  ,them  to.  desperation. 
When  the  people  of  Cologne  upset  a.  J'an-Germanist 
meeting,  arid,,  driven  ou^  of  the  hall  by- the  Prus- 
sian authorities,  revenge  themselves:  by  .singing  the 
"  Marseillaise,"  things  are  indeed  changing  within 
Germany.  Even  the  meek,  cowering  Teuton  is  being 
goaded  to  stand  up  for  his  life  vyhen  starvation  stares^ 
him  in  the  face.  "  Shining  swords,"  waving  flags, 
vauntings  about,  partnership  with  the  Deity,  boasts 
of  "victory,  victory" — when  there  is  only  defeat,  a 
circumvallation  of  Allied  troops  that  all  the  efforts  of 
the  Germans,  demigods  of  war,  fail  to  break,  do  not 
fill  the  bellies  of  the  starving  inhabitants  of  the  derelict 
Habsburg  Empire,  novi'  exhausted,  indescribably  bank- 
rupt, empty  of  all  things,  and  dying  of  hunger,  and  the 
condition  of  the  Hohenzollern  Empire  held  in  bondage 
by  Prussia  cannot  be  much  better.  ■    j.^;  ..• 

"Germany  would  be  starving  already- but:  for  the 
betrayal  of  the  Allies  by  Russia,"  we  aretoW  by  those 
among  us  whose  only  joy  is  in  croaking;  But  are  we 
sure  that  this  is  the  case?  We  cannot  be  sure.  Much 
has. been  given  up  by  the  defeated  Russian  armies  to 
the  ^Germans)  including,  probaljly,  some  considernble 
portion'  of-  the  wnr  material  .we  had  supplied  to  them  ; 
but  have  the  Germans  also  obtained  much  food?-  That 
is- the  one. essential  question  to  which  a  clear  answer 
must  be  giveri  to  nvike -us  sure,  and  there  i-s  .110 -avail- 
able evidence  to  enable  anybody  .outside.  Germany  .to 
give  it.  The- probabilities  are  in  favour  of  the  negative 
answer,  but  we  have  only  general  considerations  to  go 
by,.  In  the  first  year  of  the  German  occppatjon  of  the 
VVaUachian  Province  of  Rumania  con.'»iderab'e  quanti- 
ties of  grain  and  animals  undoubtedly  went  to  replenish 
the  German  Lnrder,  but  the  plunder  .could  not  all  go 
there,  for  Hungary  and  Austria  clamoured  for  their 
share,  and  had  in.  some  measure  to  be  satisfied.  They 
\y,raiiglcd  \viih->the-  Prussians  almost  ;to,  sedition  oyer. 


I 


January  26,    1918. 


^be  Jnvcstors'  IRevicvv, 


87 


■what*  they  strove  to  retain,  so  that  the  hunger  of  Ger- 
many, which  began  in  the  first  year  of  the  war,  was  by 
no  means  stayed  by  what  was  stolen  from  the 
Rumanians,  and  since  1916  it  is  doubtful  whether  much 
food  of  any  kind  has  been  available  in  VVa'lachia  for 
the  internal  population  of  Germany  after  the  wants  of 
her  armies  and  camp  followers  on  the  spot  had  been 
allayed. 

Nor  have  supplies  of  Russian  g'rain  been  forthcoming 
in  important  quantities  thus  far,  as  is  incidentally 
proved  by  the  efforts  of  the  German  agents  to  strike  a 
bargain  with  the  Ukrainians  for  such  stores  of  grain 
as  they  may  possess  but  refuse  to  part  with  except  for 
cash.  As  for  Russian  Poland,  which  was  boasted  over 
in  Germany  as  a  "  granary  "  annexed,  the  first  thing 
the  invaders  did  was  to  devastate  the  country.  They 
did  that  in  their  first  swarm,  and  also  swept  away  the 
resident  population.  When  they  came  back  at  the 
heels  of  the  Russians  retreating,  they  completed  what 
they  began  during  their  first  occupation,  and  how  was 
the  country  thus  devastated  to  become  all  at  once  a 
granary?  Has  Poland  produced  a  bountiful  harvest 
in  any  of  the  past  three  years?  It  is  in  a  high  degree 
improbable. 

'I'he  truth  appears,  then,  to  be  that  from  none  of 
their  accessible  or  over-run  neighbours  can  the  in- 
habitants of  the  two  Teutonic  Empires  draw  a  large, 
or  any  regular,  supply  of  any  kind  of  food,  and  from 
overseas  lands  the  Germans  can  get  none.  At  the  time 
when  Admiral  Jellicoe  was  mysteriously  "  promoted  " 
from  his  high  post  at  the  Admiralty  to  a  peerage  and 
idleness,  it  was  thought  the  proper  thing  by  some  of 
our  newspapers  to  sneer  at  the  work  done  by  our  fleet 
when  under  this  eminent  sailor's  command.  "  The 
battle  of  Jutland,"  we  were  blandly  told,  "  was  no 
victory  at  all  for  the  British  Navy,  but  merely  a 
confused  mclie  ending  in  something  very  like  a  draw." 
It  was  nothing  of  the  sort.  It  was  otie  of  the  greatest 
ep)och-determining  victories  at  sea  ever  recorded  in 
history,  for  it  not  only  deprived  Germany  of  her  fleet 
as  an  available  and  active  weapon  of  offence  in  the 
open  ocean,  but  clinched  beyond  remedy  her  position 
as  a  country  besieged.  The  ultimate  doom  of  the 
Hohcnzollern  Empire  was  sealed  and  made  inevitable 
as  the  result  of  that  fipht  off  the  coast  of  Denmark, 
and  proofs  that  it  was  so  multiply  week  by  week. 
All  the  Prussian  efforts  to  break  out  of  our  grip  and 
enjoy  the  "  freedom  of  the  seas  "  in'  their  pirate 
and  assassin  fashion  serve  but  to  proclaim  their  im- 
potence, and  the  greater  their  transitory  success  in 
sinking  our  merchantmen,  the  cargo  ships  of  all 
nations,  the  greater  their  own  hunger  has  tended  to 
become.  Germany  is  now  beyond  all  question  very 
short  of  food,  and  can  get  no  important  help  to  lessen 
the  shortage  from  anywhere.  Her  only  success  that 
counts  in  this  war  has  been  the  success  with  which 
she  has  made  all  the  world  her  enemy  and  closed  all 
granaries  to  her  peojJe. 

So  we  fully  expect  to  see  many  strange  happenings 
quite  apart  from  great  battles  on  land,  throughout  the 
Fatherland  this  coming  spring  and-  during  the  current 
year.  If  the  Prussian  high  command  is  so  sure  of 
being  able  to  strike  a  knock-out  blow  we  should  never 
hear  a  word  about  it  beforehand.  Did  that  command 
proclaim  to  the  world  its  intention  to  seize  Belgium 
and  assail  France  and  Russia  in  July,  1914,  when  its 
army  was  at  its  highest  perfection  and  all  eager  for 
what  it  was  taught  to  regard  as  a  swift  and  easy 
triumph? 

Great  events  loom  near.  Is  it  not  then  regrettable 
that  we  should  be  incited  at  this  juncture  to  wrangle 
amongst  ourselves,  to  depreciate  and  blacken  this  man 
and  the  other  among  our  Army  chiefs,  to  retail 
malignant  or  other  gossip  and  so  divert  the  nation  from 
its  high  purpo.se  in  entering  upon  this  war  at  the  very 
time  when  the  enemy's  strength  is  decaying,  when  his 
armies,  foiled  and  beaten  on  every  front,  are  heart  sore 
and  weary  with  a  conflict  out  of  which  the  survivors  of 
the  men  who  fight  get  nothing  and  can  hope  to  get 
nothing?  Surely  the  utmost  effort  should  be  put  forth 
to  harmonise  all   sections  of  the  community,  to  brace 


'the  nation  up  to  persevere  to  the  successful  end  now 
in  sight.  That  is  not  the  opinion  of  Viscount  North- 
cliffe,  a  man  welcomed  at  the  American  Bankers'  Con- 
vention last  September  as  "  the  greatest  living  English- 
man." He  and  his  retainers  hold  the  contrary  opinion, 
and  think  now  is  just  the  time  to  commence  what  they 
would  call  a  "stunt"  in  depreciation  of  Sir  William 
Robertson,  Sir  Douglas  Haig,  the  War  Office  "  gang  " 
generally,  the  whole,  indeed,  of  those  now  responsible 
for  directing  the  movements  of  our  armies.  It  is  in- 
describably shameful,  and  we  cannot  believe  it  possible, 
as  most  of  the  independent  newspapers  throughout  the 
country  appear  to  insinuate,  that  the  Prime  Minister  can 
be  behind  it.  For  the  whole  proceeding  seems  to  be 
inspired  by  treachery  to  all  that  is  worthy  in  our  pur- 
poses or  capable  of  sustaining  hope  in  the  future  of 
democracy.  The  treachery  may  be  unconscious,  like 
that  of  Mr.  Arthur  Henderson  when  this  week  he 
manoeuvred  to  foist  a  peace  programme  of  an  absurd 
description  on  the  Nottingham  Labour  conclave,  but  it 
may  be  none  the  less  harmful  for  that. 

When  an  army  has  a  fortified  place  in  its  grip,  is  it 
usual  for  the  victorious  besieger  to  keep  worrying  the 
besieged  with  suggestions  as  to  the  terms  of  surrender? 
Does  he  not  usually  wait  for  the  besieged  to  make  the 
first  move  ?  What  did  the  Prussians  do  when  they  held 
Paris  isolated  from  the  world  in  1871  ?  Did  they  send 
in  daily  to  ask  the  Parisians  how  and  on  what  terms 
it  would  be  agreeable  for  them  to  open  the  gates  of 
their  city?  We  rather  think  not,  although  before  Paris 
was  forced  by  the  extremity  of  its  hunger  to  give  up  its 
defence,  the  Prussians  outside  were  in  a  far  worse  plight 
than  any  of  the  armies  now  besieging  Germany  are.  It 
is  for  the  besieged  to  climb  down,  not  for  us  to  en- 
courage them  in  their  still  blatantly  proclaimed  con- 
queror's insolence,  and  climb  down  they  must.  Let 
them  severely  alone. 

The  next  three  mociths  are  critical  and  may  prove  to 
be  the  most  anxious  time  of  the  whole  war,  the  time 
in  which  may  be  determined  whether  the  peace  to  come 
is  to  be  a  genuine  peace  between  democracies,  or  a 
"deluding  peace  "  patched  up  between  the  tyrants  and 
their  victims  and  dupes.  Is  this  the  time  for  us  to 
jumble  up  the  army  commands,  turn  everything  topsy- 
turvy and  "watch  the  fun"?  The  "  stuntites "  of 
Carmelite  Street  and  Printing  House  Square  may  think 
so,  but  the  nation  does  not,  and  the  one  prominent  cause 
of  the  pessimism  and  almost  despair  which  ravages 
Fleet  Street  and  its  purlieus  is  just  this,  that  the 
thoughtful  journalists  there  cannot  feel  confidence  in 
the  men  at  the  head  of  affairs.  However  bold  in  words, 
some  among  our  guides,  it  is  felt,  may  wilt  and  fail 
us  any  day. 

■  Whatever  lies  behind  the  latest  "  stunt  "  of  the 
.HariKsworths  begun  last  Sunday  by  one  of  the  minor 
"  rags, "  as  the  Westminster  Gazette  courageously 
pointed  out  in  an  outspoken  leader  on  Monday,  it  is 
characterised  by  all  the  usual  trade  marks.  Filth  is 
cast  upon  everybody,  it  is  considered  "  good  bu.siness  " 
to  besmear.  Their  character  and  judgment  are  assailed 
and  their  supersession  is  demanded  in  language  that 
could  not  be  bettered  by  the  reptile  Press  of  the  Wil- 
helmstrasse.  It  may  be  true  that  Mr.  Lloyd  George  is 
a  convert  to  the  "one  supreme  generalissimo"  fad, 
and  that  the  War  Office  and  our  supreme  command 
oppose  him,  but  that  is  no  excuse  for  attacking  these 
officers  or  the  War  Office  itself  in  hoggish  insolence. 
As  little  justification  dees  it  offer  for  a  perversion  of  the 
truth  about  the  performances  of  our  armies  under  their 
present  leaders  during  this  war.  The  whole  "  raid  "  is 
infamous.  One  has  but  to  have  the  most  rudirnentary 
acquaintance  with  the  history  of  this  war  of  three  and 
a-half  years  to  resent  such  depreciation.  From  the  time 
when  Our  little  Army  faced,  with  little  but  its  rifles 
and  bayonets,  in  the  summer  and  autumn  of  1914,  the 
swarming  hosts  of  Germany,  armed  to  the  teeth  with 
the  most  powerful  and  perfect  artillery  ever  con- 
structed, do\^n  to  our  last  battles  before  Ypres  and 
Cambrai — yes,  Cambrai,  although  the  victory  there  was 
marred  by  some  bungling  which  will  doubtless  be  dealt 
with — our  troops  have  never  failed  us,  never  been  really 


88 


TTbe  investors'  IReview. 


January  26,   191S. 


defeated.  On  tJie  contrary,  victory  after  victory  has 
been  won  by  them  in  the  teeth  of  opposition,  the  most 
formidable  and  scientific  that  a  nation  trained  from  in- 
fancy upwards  in  the  art  of  man-slaying  and  to  passive 
obedience  could  devise.  But  had  it  been  otherwise  the 
present  is  not  the  time  for  helping  the  enemy. 

There  .is    no .  doubt   a    good    deal    of    truth    in    the 
grumbling  fashionable  in  all  places  where  people  con- 
gregate against  the  neglect  of  the  new  Army  by  the 
•old.      "  Our  .^rmy  is  commanded  by  a  Cavalry  Club," 
.we    are    told,    "whose    jealousy    towards    the    'new 
Army  '    and    its   officers   bars   the   way    to   promotion, 
screens    the    incompetent— nidc    Cambrai — and     keeps 
them  in  places  they   are    not    fit    for."       That  is  the 
■case  more  or  less  always  with  all  regular  armies,  called 
to   work    alongside    the    amateur.     We  are    not    sure, 
•indeed,   that   Caius  Julius   Caesar  himself  was  not  an 
"amateur,"  :who    suffered    from    the    discontent     and 
mutinies  of  men  who  considered  themselves  far  more 
qualified  than   this  mere   patrician   intriguer  and  poli- 
tician was  to  lead  hosts  to  victory.      In  this  respect  the 
War  Office  and  its  regular  soldiers   differ  in   no  way 
from  other  trade  unions — from  the  Union  of  Railway- 
men,  or  the  Amalgamated  Society  of  Engineers,   say, 
or  from  the  Bar,  University  graduates,  or  doctors.     All 
"  trades  unions  "  are  alike  in  aiming  at  exclusiveness  ; 
■but  however  deep  the.  grievances  may  be  in  the  case 
of  the  army,  they  offer  ho  excuse  whatever,  for  the  atti- 
tude assumed  or  the  language  employed  by  the  gutter 
Press.     Already,  indeed,  the  alleged  grievances  are  on 
the  way  to  be  remedied,  and  it  may  be  that  the  "  stunt  " 
has  been  altogether  organised  upon  early  information 
that- such  was  the  fact.      "We  did  it  all."     "But  for 
'US  where  would  the  country  be  now?  "  the  stuntists  will 
say,  when  all  is  over.      It  would  not  suit  this  type  of 
journalism  to  deal  with  public  affairs  in  a  manner  con- 
sonant   with    decency.     They   have    to    consider    their 
•  dieutele,   whose  .mental  development  renders  it  essen- 
tiali  that   everything   should   be-  exaggerated  -and  -dis- 
'torted^  totally  without  regard  to  any  good  or  patriotic 
object  whatsoever.     Most  citizens  appear  .to 'agree  with 
the  newspapers  not  under  sedative  advertisement  influ- 
•enee  that  it  is  time  the  exploits  of   thi-s  Apache   kind 
of  journalism   should   be   restrained.      We   are  not   so 
sure.    Would  it  not  be  best  to  ignore  the' gutter  Press 
.and  keep  our  attention  fix.ed  upon  the  party  leaders  and 
intriguing  politicians?    A  little  plain  speaking  now  and 
then  in  the  House  of 'Commons  might  be  more  valu- 
able' than,  reams  of  objurgation  arid  anathema  hurled 
iat  Lord  Northcliffe.      He,  we  fancy,  rather  likes  to  be 
abusedi     It  nourishes  the  belief  in  his  "  greatness." 

What  induced 'the  Germans  to  send  their  champion 
battleship,  the  Goeben,  and  the  smaller  Breslau,  out  of 
the  Dardanelles,  we  have  not  yet  been  told.  It  is 
hardly  probable  that  they  emerged  to  go  to  the  help 
■pf  "  Tino  the  Dane,"  the  traitor  ex-Greek  king.  But 
•we  are  glad  they  did  pluck  up  courage  to  make  a  bolt 
■•  <n  It,  and  that  they  have  at  last  met  the  fate  they 
"^  deserve.  Not  improbably,  things  were  getting  very  un- 
•comfortable  for  the  German  crews  as  they  lay  in  the 
Bosphorus  or  the  Golden  Horn,  and  it  is  likely  enough 
that  the  desperate  condition  of  the  Turks  in  Palestine 
■generated  an  idea  amohgst  the  Germans  that  they 
might  successfully  reach  and  work  havoc  among  ^u'r 
ships  engaged  in  supplying  our  armies  there,  but  it 
does  not  much  rnatter  no.w.  And  it  seems  that  our 
poor,  despised  fleet  Which  Has  failed-  to  sink  all  the  Ger- 
Vnan  feubmersibles  in  a  month,  still  has  some  kick  in  it. 

.  Last  vjeek  was  .again  in  some  degree  comforting  with 
regard  to  our  losses  .o/'  ships,  at  sea  by  mine  and  sub- 
marine. .The  total  of -ships  of  1,^0  tons  and  upwards 
was  pve,^  one  ship,  making  up  the  six  in  all  returned^ 
haviri^  been- sunk  in  the  week  ended  January  5.  Two 
;snialler  yecsels  were  also  sent  to  the  bpltom,  so  that  iq. 
all  tlie  ships  destroyed  numbered  seven,  ap  compared 
with  six  for,  thepreceding  week.  Moreovgr,.,  twice,  a>5 
many  vessel^,  or  .six  as  compared  .with  three,  were  un- 
successfully attacked  last  week.  Tliaj-e  are-  stofio^ 
floating  about  that  German  submarines  have  begun  to 
surrender,   although   there   is   nothing   official   to  that 


effect.  A  sequel  of  that  kind  would  be  a  natural  con- 
sequence of  the  mutiny  of  U-boat  crews  at. Kiel  .recently 
reported  by  the  correspondent  of  the  Daily, Express  in 
Switzerland.  The  total  number  of  ships. entering  and 
leaving  our  ports  last  week  was  4,4G^7,..  or  207,  more 
than  the  number  of  the  preceding  week.  Of  this  total 
2,255  entered  and  2,242  cleared.  .  The  Irench  lost  two 
large  and  one  small  vessel  last  week,  and  the  Italians 
only  one  small  sailing  vessel.  A  steamer  was  ainsuc- 
cessfully  attacked. 

Mr.  Houston  put  the  Secretary  to  the  Admiralty,  Dr. 
Macnamara,  through  a  severe  heckling  in  the  House 
about  our  losses  on  Wednesday,  but  he  did  n<  t  succeed 
in  bringing  out  any  facts  which  really  impugned  the 
veracity  of  the  Government.  It  seems,  hov/ever,  a  fair 
inference  to  draw  that  the  activity  of  the  enemy's  under- 
water craft  has  been  much  greater  around  the  mouth 
of  the  Mersey  and  in  St.  George's  Channel  than  it  ought 
to  have  been  allowed  to  be.  , 

A  debate  also  arose  in  the  House  on  the  s^me  evening 
on  the  changes  in  course  of  execution  in  the  composi- 
tion of  the  Ileadquarters  Army  Staff,  and  some  of  the 
speakers  gave  expression  to  the  Harmsworthian  type 
of  hostility  to  Sir  Douglas  Haig,  &c.  The  whole 
display  rather  tended  to  confirm  the  suspicion  expressed 
above,  and  Mr.  Law's  emphatic  repudiation  of  the 
stunt  Press's  attitude  seemed  to  many  to  mean  much 
less  than  was  said. 


Answers  to  Coppespondents. 

',•  A  Key  to  thcso  Ahsu^ors  will  be  posted  early 
.each     w/eek     for    a    subscription     of     ONE 

GUINEA  per  annum,  lis.   for  six  months,  or 
'  Ss.  9dl,  for  three  months. 

.Deposits  against  future  Queries  may  be  lodoed 

with  the  Publisher. 

E.  B. — Take  up  the  ne-vv  «hares  by  all  means.  The  company 
is  doing  -well. 

H.  H.  M. — The  prospects  are  improving.  The  market  looks 
iof  higher  prices.     Traffics  gcod.     You  should   hold. 

Gam. — As  to  buying  to  average  -we  are  doubtful,  but  the  view 
is  that  the  shares   will   go  higher,  ,so  you  .should  hold. 

A.  B.  Z. — (i)  There  may  be  no  immediate  urgency,  perhaps, 
but  certainly  the  less  you  owe  in  tbe  times  ahead  the  better, 
no  matter  what  the  bank.  (2)  It  depends.  If  the  shares  are 
excellent,  there  may  be  no  urgency  to  sell,  at  the  same  time,  -we 
think  that  commodity  has  seen  .its  best  for  some  time,  and  it 
might  be  well  to  take  a  good,  profit  when  you  have  it.  (3)  N<^ 
nothing  of  the  kind  talked  about' so  much,  and  to  which  you 
refer,  is  at  all  likely  to  happen.     It  would  not  be  tolerated. 

Downs. — (i)  It  is  hoped  that  some  distribution  will  be  made. 
Traffics  are  quite  good,  and  with  increased  rates  the  accounts 
should  show  some  improvement,  {2)  These  look  fairly  high 
now,  though  profits  seem  likely  to  .continue  good'  for  the 
present.  You  might  take  your  profit.  (3)  A  fair  speculative 
purchase,  as  the  company  must  be  doing  well. 

F.  M.  R. — It  is  tempting,  and  we  think  yon  should  sell. 

.  A.  L.  L. — ;The  terms  are  quite  good,  .and  should  be  accepted- 
Tower. — (i)  This  is  under.  n,ew  contrql.  Some  of  its  assets 
begin  to  look  more  promising.  (2)  This  also  has  .some  likely 
properties.  After  waiting  so  long  .we  think  you  might  retain 
both  for  the  present. 

J.  K.  R. — There  cannot  be  any  appreciable  rise  for  a  long 
time  to  come.     You  can  certainly  obtain  higher  interest,  so  sell. 
P.    T.    M. — The  5  per  cent,   is   the   cheaper,   and  the  more 
nvarketable. 

R.  D.  F. — 'We  think  you  should  make  the  exchange,  as  there 
is  a  little  capital  advantage  -which  will  disappjear  if  you  hold 
until  maturity. 

A.  G.  C. — (i)  The  company  is  doing  'wHl.  Its  financial 
pdsitioti  is  strorrg,  arid  we  see  no  reason  tt>  sell.'  as  you  could 
not  easily  find  a  similar  inve.stment  as  good.  («)  Nor  can  we 
advise  gelling  these,  althou.gh  the  .business  is  not  likely  to  revive 
unfit  after  the  war.  Tlieri  should  be  X  good  dehian^  then  lor 
its  product. 

,  Euan. — It  appears  to  h-ave  a  future,  as  the  property  is  well 
placed;  but,  it  will  be  -sonie  , years  before  -it  is  ■  .suJERpiently 
developed,  to  yield  dividends..  •    .- 1       -  .... 


'  Cottbn  Crop  in  South  Africa. — A  few  weeks  ajgo  'Mr.  W.  H 
Scherffiiis,  chief  of  the  cotton  and  tobeccb  division  in  South 
Afrioa,  said  that  the  last  cotton  crop- was  the. largest  yet  pro- 
duc(;d  in  the  Union,  and  that,  most  of  it  has  heen  sold  to  local 
buyers  for  manufacturing  purposes  in  the  Union.  The  crop 
amounted  to  360,000  lbs.-  S«fed  cfefton,  of'i*hich  210,000  irepre- 
ients^lfht,  the  price  obtained  "for  seed  cotton  being  2jd.  to  jjd. 
lb.,  and  for  Hnt  gd.  to  is.  per  lb.,  as  against  6d.  and  8d  in 
previous  years; 


January  26,   1918. 


Zbc  Jnvestors'  "Review. 


99 


Insurance    News, 


I 


The  official  announcement  with  regard  to  the  pro- 
posed fusion  between  the  London  Assurance  Corpora- 
tion and  the  British  Law  Fire  Insurance  Co.  has  now 
been  issued,  and  a  provisional  arraiigement  has  been 
entered  into.  The  basis  for  an  amalgamation  of  the 
two  undertakings  is  as  follows  : — The  London  Assur- 
ance offers  4,000  partly  paid  ordinary  shares  of  £2=:, 
each,  with  ;£,i2  los.  paid,  the  present  market  price  of 
which  is  j^bo  a  share  ;  250,000  ;£i  fully  paid  6  per 
cent,  cumulative  preference  shares,  and  ;£'433,7So  in 
War  Loan  or  cash.  Assumine;-  the  preference  shares  to 
be  worth  par,  the  total  purchase  consideration  works 
out  at  ;6923>75o,  which  is  equivalent  to  j^6  3s.  2d.  for 
each  of  the  150,000  British  Law  Fire  shares.  The 
latter  company  has  two  classes  of  shares,  100,000  ;^,  10 
shares  with  ;^i  paid,  and  50,000  ;^i  fully  paid  shares, 
both  standing  at  practically  the  same  market  price. 
For  some  years  past  the  dividend  on  these  shares  has 
been  20  per  cent.  The  consent  of  the  Treasury  Com- 
mittee will  have  to  be  obtained  to  the  fresh  issue  of 
capital  required.  Both  companies  will  continue  their 
business  on  present  lines,  and  the  amalgamation  of 
interests  should  prove  of  advantage  to  all  concerned,  in 
view  of  the  tendency  of  insurance,  which  for  years  past 
has  been  in  the  direction  of  transaction  of  all  forms  of 
business  by  composite  offices. 

The  National  Mutual  Life  .Assurance  Society  is  again 
the  first  life  assurance  society  to  publish  its  full  annual 
report.  During  1917  the  gross  new-  business  exceeded 
that  of  1916  by  ^14,844  at  £22^,20^,  but  the  neit  new 
business  was  lower  by  ^£"2 1,256  at  ;^  173, Ck) 4..  Claims 
were  ;^77,48o  higher  at  ;/r274,227,  this  increase  follow- 
ing a  decrease  of  ;69i>.S^9  'n  *he  previous  year.  T  he 
expense  ratio  was  a  shade  lower  at  14  per  cent.  Stock 
Exchange  securities  showing  a  depreciation  have  been 
written  down  to  selling  prices  on  December  31,  and 
no  credit  has  been  taken  for  any  appreciation.  Par- 
ticulars are  given  of  all  securities  held,  the  total  stand- 
ing in  the  books  at  ;^i,392,i2i,  the  selling  price  of 
which  was  ;^i,425,969.  Accumulated  funds  amount  to 
;^2,892,598,  a  decrease  of  ;^62,568  on  the  year  ;  the 
average  rate  of  interest  earned,  excluding  reversions, 
was  ;^4  5s.  lod.  per  cent.  nett.  The  corresponding 
average  rate  was  ;£'5  is.  5d.  per  cent.,  or  5s.  id.  more 
than  Ihe  yield  in  1916.  .Attention  is  drawn  to  the  fact 
that  the  society  offers  special  facilities  for  the  purchase 
of  National  War  Bonds  on  the  instalment  plan. 

It  is  expected  that  the  new  business  of  the  Canadian 
life  offices  for  1917  will  constitute  a  record  tclal,  in 
spite  of  the  handicap  of  the  war.     The  highest  total  so 


far  is  ;£,"40, 321,600  for  the  year  1913  ;  for  1916  ihe  total 
^■as  ;^46,220,20o. 

For  1917  the  gross  income  of  the  Abstainers  and 
General  Insurance  Co.  showed  an  increase  of  ;^9,200 
at  ;^''i77,448,  and  as  the  result  of  the  year's  operations 
the  accumulated  funds  increased  by  ;66i,9g5  to 
;^"i,o82,347.  Life  policies  numbering  791  were  issVied 
assuring  ;^i98,64i,  the  corresponding  figures  for  the 
previous  year  being  924  policies  for  ;^22i,6ii.  The 
favourable  mortality  of  the  lives  assured,  which  has 
been  the  unbroken  record  of  the  company,  has  been 
maintained,  the  number  of  deaths  was  112  more,  and 
the  amount  paid  ;^'i7,942  more  ;  157  claims  for  ;(^i7,'628 
were  directly  cau.sed  by  the  war.  The  usual  vahiatJcfti 
falls  due  at  the  end  of  the  current  year ;  under  existiwg 
circumstances  the  directors  propose  to  defer  their  de- 
cision as  to  whether  a  valuation  shall  then  be  made. 
The  usual  dividend  of  9  per  cent,  for  the  current  year  is 
recommended. 

A  Bill  has  been  deposited  by  the  directors  of  the 
Railway  Passengers  Assurance  Co.  for  this  session  of 
Parliament  to  repeal  the  whole  of  the  existing  provi- 
sions, and  to  enact  new  ones,  for  the  management  atid 
continuance  of  the  company.  The  Bill  preserves  the 
powers  conferred  on  the  North  British  and  Mercantile 
Insurance  Co.  in  1910  to  merge  the  undertaking  of  thte 
Railway  Passengers  in  their  business  absolutely.  Thfe 
capital  of  the  company  is  fixed  at  one  million,  in  j^ib 
shares,  the  whole  of  which  is  vested  in  the  I^orth 
British  company. 


OILFIELDS    PRODUCTION. 

Black  Sea  Amalgamated.— Week  ended  Jan.  5,  5,320  tons. 

Bibi  Eibat.— Week  ended  Dec.  16,  638  tons. 

European. — Week  ended  Jan.  6,  61,200  pcods. 

Maikop  Combine. — Week  ended  Jan.   5,   398  tons. 

Maikop  Orient.— Plot  435a.  WeU  3  :  Week  ended  Jan.  10, 
14,000  poods. 

Russian  Petroleum. — Five  weeks  ended  Dec.  29,  226,24ft 
Doods. 

United  British  of  Trinidad.— Week  ended  Jan.  Y6,  3,1^67 
tons. 

Ural  Caspian.— Week  ended  Jan.  3,  2,142  tons,  and  we«* 
ended  Jan.  10,  2,: 51  tons. 


Major-General  the  Hon.  Sir  Newton  Moore,  tate  Agent- 
Crtineral  for  Western  Australia,  has  joined  the  Ix)ndon  board 
of  directors  of  the  Western  Australian  Insurance  Co.,  Ltd.,  of 
I,  Qxteen  Victoria  Street,  E.C,  and  50,  C-orrthill,  E.C. 

The  directors  of  the  Clerical,  Medical  and  General  Life  Assur- 
ance Society  have  appointed  Mr.  Noel  Bridgman  to  be  manager 
of  their  City  branch,  which  has  recently  been  moved  from  No. 
I  to  No.  8,  King  William  Street,  E.C.  4. 


ARR'S      BANK 


I 


Authorised 
Issued 
Paid  up  - 
Reserve  Fund 


Deposits  (31st  December,  1917) 


LIMITED. 

CAPITAL. 

£15,000,000 

£12,117,650 

£2,423,530 

£2,100,000 

£68,631,321 


CECIL  F.  PARR,  Chairman. 


R.  HUGH  TENNANT,  Deputy  Cbalnmiki. 


JOHN  STEWART,  General  Manager. 
J.  C.  ROBERTSON,  Deputy  General  Manager. 
F.    W.   INGALL,    Assistant  General  Manager. 


HEAD    OFFICE:  — 

4,  Bartholomew  Lane,  London,  E.C.  2. 


The  Bank  has  332  Branches  in  London  and  iho 
Provinces,  including  s 

LIVERPOOL.  BIRMINGHAM         DERBY  ST.  HELENS 

MANCHESTER    BRISTOL  LEICESTER 

BEDFORD  CHESTER  LUTON 


WARRINGTON 

WIDNES 

WIGAN 


go 


Xlbe  Jnvestors'  TRevlew, 


January  26,   1918. 


SGOniSH  UNION  &  NATIONAL 

INSURANCE  COMPANV. 

ESTAliLIBHKU     1824. 

ASSETS    exceed    £11,000,000. 

FIRE  (INCLUDINC  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  CLASS  BREAKAGE,  TRANSIT  OF 
SECURITIES,  FIDELITY,  PROPERTY  OWNERS'  LIABILITIES,  HORSE  DRIVING 
ACCIDENTS,  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh:  35,  St.  Andrew  Square. 
London:  S,  Walbrook,  E.G.  4,  and  4.  St.  James'  St.,  S.W.  1. 


ASSURANCE   COMPANY 
LIMITED, 

ESTABLISHKI)   I  782. 

Hud  Offloe:  PHCENIk  HOUSE,  KING  WILLIAM  STREET,  LONDON,  E.C.  4. 
Total  Assets  Exceed  JS17, 000,000. 
Claims  Paid  Exceed  JS88,000,000< 

Chairman— Rt.  Hon.  LORD  GEORGE  HAMILTON,  I'.C,  G.C.S.I 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

Lots  of  Profits  following  Fire,  Workmen's  Compensation,  Fidelity  Guarantee, 
Burglary,  Trustee  and  Executor,  &c. 
Prospectuses  and  Proposal  Forms  may  be  obtained  on  application  to  any  of 
the  Branch  Offices  or  Agencies,  or  to  the  Head  Offices 

General  Manager        -        SIR  GERALD  H.  RYAN. 


IF     YOU      WISH      TO      BUY      MORE 

NATIONAL    WAR    BONDS 

THAN    YOU    CAN    PAY    FOR   OUTRIGHT,     APPLY   TO   THE 

Gerical,  Medical  &  General  Life  Assurance  Society 

WHO    HAVE 

An   Attractive   Scheme 

UNDER     WHICH     THE     BONDS     CAN     BE 
PURCHASED  BY  ANNUAL    INSTALMENTS. 
Apply  to— 

THE        GENERAL        MANAGER, 
IS,     St.    James'    Square,    S.W.I. 

Telephone:  REGENT  1135. 


Money    and   Credit    Notes, 


Bank  Rate  5  per  Cent.    (Reduced  from  5^  per  cent,  on 
Thursday,  April  5,  19x7.) 


Norfolk  House,  Friday  Evening. 

Why  did  the  Gksvernment  boggle  so  over  those  Rus- 
sian Treasury  bills?  It  was  not  worth  while  to  assume 
an  attitude  which  everybody  would  characterise  as 
mean.  Russia  could  not  pay  the  bills  in  her  present 
circumstances,  although  when  order  again  emerges 
out  of  chaos  her  resources  are  ample  for  these  and  all 
other  liabilities.  Therefore,  as  the  bills,  amounting  to 
some  ;^i7, 500,000,  ;^"io,ooo,ooo  of  which  were  Rus- 
sian Treasury  bills,  had  been  issued  here  under  the 
sanction  and  responsibility  of  the  British  Government, 
the  only  honourable  and  straightforward  course  to  pur- 
sue was  for  our  Chancellor  of  the  Exchequer  to  have 
said  to  the  holder  :  "  We  accept  the  liability,  and  will 
pay."  The  bills  and  advances  will  be  extended  for 
another  year,  and  the  extension  renewed  again  if  neces- 
3ary  at  the  end  of  that  term,  at  the  same  rate  of  interest 
as  was  originally  paid,  or  at  as  near  that  rate  as  the 
state  of  the  money  market  warrants."  That  would 
have  been  the  straightforward  and  honourable  course 
to  pursue,  but  Mr.  Law's  advisers  seem  to  hdve 
thought  that  they  had  a  chance  of  saving  a  few  pounds 
by  taking  advantage  of  an  extremity,  and  so  they 
offered  to  take  over  the  documents  falling  due,  and  to 
give  in  exchange  for  them  3  per  cent.  Exchequer  bonds 
at  par.  How  much  would  they  save  by  this  pettifog- 
ging transaction?  Enough  to  be  compensation  for  the 
meanness  of  it? 


Naturally  enough  much  dissatisfaction  has  arisen  in 
the  Money  market  over  the  terms  of  the  Government's 
offer  to  acknowledge  a  "  certain  moral  resDonsibility  " 
with  regard  to  these  bills.  On  Monday  a  meeting  of 
bill  brokers,  bankers,  and  other  financial  interests, 
numbering  between  40  and  50,  was  held,  at  which  it 
was  unanimously  agreed  that  the  complete  facts  as  to 
the  situation  had  not  been  placed  before  the  Chancellor 
of  the  Exchequer  before  he  came  to  his  decision,  and 
it  was  also  decided  to  form  a  small  committee  to  submit 
a  statement  to  Mr.  Bonar  Law.  Some  holders  of  the 
bills  have  written  off  their  loss,  and  others  are  able  to 
make  good  their  loss  by  a  deduction  from  excess  profits 
duty.  But  the  fact  remains  that  many  holders  are  not 
in  that  happy  position,  and  to  them  the  loss  of  20  per 
cent,  is  a  serious  matter.  It  is  argued  that  since  the 
Russian  bills  were  issued  through  the  Bank  of  E^ng- 
land,  with  the  approval  of  the  Government,  at  About  the 
same  rate  as  the  British  Government  was  paying  for 
short  debt,  and  as  it  had  been  announced  that  the  Allies 
hnd  agreed  to  pool  their  resources,  the  "  moral  responsi- 
bility is  unquestioned.  The  market  takes  the  view  that 
if  the  value  of  "  moral  responsibility  "  is  only  80  per 
cent.,  morality  must  stand  at  20  pK^r  cent.  .Jiscount  in 
allied  finance.  In  view,  also,  of  the  fact  that  these  bills 
were  is.'^iied  to  repay  the  Government  the  fund.s  it  had 
lent  to  Russia,  the  effect  of  the  fiovernment  ofier  is  to 
shift  a  part  of  the  burden  on  to  the  shoulders  of  a  few 
individuals.  This  attitude  is  unfortunate  at  a  time 
when  the  British  Government  is  meeting  in  full  the 
coupons  on  Russian  loans,  and  when  the  Japanese 
Government  and  the  American  Government  are  actually 
paying  Russian  bills  issued  in  their  respective  countiies 
at  par.  It  cannot  redound  to  the  credit  .)f  the  I>:itish 
Government  to  default  to  the  extent  of  20  per  ci'nt.  on  a 
liability  for  which  it  admits  a  moral  responsibllitv,  and 
we  hope  the  decision  will  be  reconsidered  before  greater 
harm  is  done. 

It  is  quite  a  topsy-turvy  world  we  are  living  ii.  Some 
twelve  years  or  so  ago  Japan  h;id  plunged  .'O  deeply  into 
debt  to  the  British  public  owing  to  its  stupend)us  war 
with  Russia  that  people  here  began  to  be  afraid  lest 
the  poor  population  of  the  Japanese  islands  would  rot 
be  able  to  meet  all  their  engagements  in  fuM,  and  were 
only  i-eassured  when  they  saw  with  what  perfect  skill 
and  precision  Japanese  statesmen  and  administrators 
managed  the  country's  financial  affairs.  No  publio  dtbt 
ever  h.Ts  been  controlled  and  provided  for  with  the 
logical  precision  and  .skill' of  the  Japanese,  and  now  that 
Empire  begins  to  get  its  reward,  for  it  is  able  to  grant 
a  loan  to  our  Government.  The  amount  is  to  be  for 
;^io, 000,000  nominal,  or  $50,000,000,  and  will  be 
represented  by  British  yearling  Treasury  biU-s  for 
80,000,000  yen.  These  bills  will  be  issued 
in  Japan  at  a  discount  of  5^  per  cent., 
and  will  at  first  be.  taken  up  by  the  Japanese 
Government  Savings  Banks,  to  be  afterwards  placed 
by  the  Government  on  the  market.  Of  the  proceeds 
the  Japanese  Government  have  remitted  840,000,000 
to  New  York,  and  the  b.ilance  of  810,000,000  is  to  be 
exchanged  for  a  rupee  credit  given  by  our  Government 
10  the  Japanese  Government.  This  is  probably  only  the 
first  of  a  series  of  such  transactions,  for  our  extremity 
should  offer  Japan  valuable  opportunities  for  accelerat- 
ing the  reduction  of  the  external  debt.  .Already  much 
has  been  effected  in  that  way  bv  utilising  tht  large 
credits  which  Japanese  trade  with  us  and  our  Allies 
provides  in  steadily  buying  up  the  debt  in  the  London 
market. 

Interesting  facts  were  submitted  on  Tuesday  to  the 
Norwegian  Storting  with  regard  to  the  Budget.  The 
ordinary  expenditure  is  put  down  at  ^18,000,000,  and 
the  extraordinary  at  ;^3, 500,000.  In  spite  of  the  in- 
creased revenues  of  the  year,  the  National  Debt  has 
been  increased  by  about  /?4, 500,000.  Expenditure  not 
included  in  the  Budget,  but  entailed  by  the  maintenance 
and  defence  of  the  country's  neutrality  since  the  b«<m- 
ning  of  the  war  has  totalled  ;^6, 7  50,000.  The  Times 
correspondent  goes  on  to  say  that  the  ordinary-  expendi- 
ture has  been  doubled  within  the  last  five  years,  chiefly 
because  of  the  steadily  rising  cost  of  labour  and  raw 


January  26,    igi8. 


dbc  investors'  TReview. 


91 


materials,  particularly  owing  to  the  increase  in  the 
price  of  coal.  Railway  expenditure  has  also  increased 
enormously  in  spite  of  the  fact  that  the  fares  have 
been  raised  considerably. 

Throughout  the  week  money  has  been  more  or  less 
in  demand.  That  is  not  to  b<;  wondered  at  when  we 
see  the  enormou.s  masses  of  it  now  being  gathered 
into  the  Treasury.  In  the  old  days  such  a  stream  of  re- 
venue would  have  pinched  the  open  Money  market  to 
agony  point,  and  made  it  kan  heavily  on  the  Bank  of 
England.  Now  such  is  the  abundance  of  credit,  the 
collection  of  the  taxes  has  made  a  difference  of,  perhaps, 
J  per  cent,  in  the  discount  rate  for  ()0-day  bank  bills, 
and  call  money  has  sometimes  been  i  per  cent,  dearer, 
as  per  our  table. 

Jhere  has  been  no  real  scarcity  of  credit,  and  the 
Bank  return  shows  that  no  great  pressure  has  arisen 
at  the  Bank  of  lingland.  The  changes,  indeed,  are  re- 
markably small.  Other  deposits  have  risen  ;£,'2, 850,000, 
just  because  other  securities  are  ;£,2,936,ooo  higher. 
It  may  be  that  this  is  only  the  beginning  of  a  heaping 
up  of  market  liabilities  to  come  between  now  and 
.^pnl,  but  it  is  useless  to  guess  about  it,  everything  is 
so  abnonnal.  Other  changes  in  the  Bank  return  are 
even  more  insignificant.  The  reserve  is  again  up 
;£, 249,000,  but,  owing  to  the  increase  of  more  than 
;^3, 000,000  in  the  total  liabilities,  its  proportion  to  these 
is  J  down  at  iqf  per  cent. 

Private  advices  indicating  the  probability  of  the  Rus- 
sians breaking  off  negotiations  with  the  Germans  has 
caused  a  relapse  in  the  Scandinavian  exchanges.  Both 
Copenhagen  at  15.20  kr.  and  Stockholm  at  14.00  kr. 
are  15  points  lower,  while  Christiania  has  fallen  10 
points  to  14.55  kr.  The  lira  has  depreciated  rather 
sharply  in  value,  and  the  pound  steYling  can  now  pur- 
chase 40. 17I  lire  as  against  39.95  lire  a  week  ago. 
Petfograd  is  now  nominally  quoted  at  360.  The 
Spanish  exchange  has  moved  slightly  in  our  favour  on 
an  expectation  that  Lord  Cunliffe's  visit  to  Madrid  will 
shortly  result  in  an  announcement  of  a  Spanish  credit 
for  the  Allies.  Pesetas  are  now  quoted  at  19.59^  to 
the  pound.  The  Swiss  exchange  has  relapsed  15  points 
to  21.05  f""-     Montreal  exchange  has  eased  to  $4.80. 

It  is  announced  from  New  York  that  the  United 
States  Treasury  began  on  Wednesday  to  sell 
$400,000,000  of  4  per  cent,  certificates  of  indebtedness. 
They  mature  on  .'\pril  22,  and  are  the  first  of  a  series  to 
be  issued  in  anticipation  of  the  third  Liberty  Bond,  into 
which  the  certificates  will  be  convertible.  The  Governor 
of  the  Boston  Federal  Reserve  Bank,  savs  the  New 
York  correspondent  of  the  Times,  has  asked  the  New 
England  banks  to  subscribe  weekly  to  these  certificates 
if  per  cent,  of  their  total  resources. 

Many  interesting  things  have  been  said  by  the  chair- 
man and  other  speakers  at  the  meetings  of  bank  share- 
holders this  week,  and  we  should  have  been  delighted 
had  it  been  possible  to  make  room  as  usual  for  extracts 
from  the  speeches.  Unfortunately  the  costs  of  paper 
and  printing  have  risen  with  such  severity  as  to  compel 
us  to  deny  ourselves  and  our  readers  that  satisfaction. 
Therefore,  we  shall  reserve  until  next  week  the  article 
■dealing  with  these  bank  meetings,  and  with  some  of  the 
most  interesting  subjects  then  brought  under  review. 
Already  a  full  and  careful  analysis  of  all  the  reports  as 
issued  had  been  given,  but  there  are  mmy  things  out- 
side the  dry  figures  of  a  balance-sheet  which  demand 
attention,  and  are  full  of  interest  There  is,  for  in- 
stance, the  funding  of  the  floating  debt  in  Treasury  bills, 
the  speculations  of  theorists  and  the  anxieties  of  the 
wealthy  over  the  "  conscription  of  capital  "  gossip,  and 
the  delicate  subject  of  currency  inflation,  besides  all 
those  practical  subjects  dealing  with  the  revivification 
and  expansion  of  our  trade  when  peace  comes  back,  the 
consequences  of  the  amalgamations  which  have  been 
taking  place,  the  new  and  more  international  position 
our  banks  are  assuming  in  the  handling  and  control  of 
the  world's  commerce  and  development,  with  many 
other  topics  of  interest. 

Silver. 
The  silver  market  has  been  easy  throughout  the  week, 
and  the  price  closed  last  night  at  43|d.  per  oz.     A  week 


ago  it  was  44^-d.  The  end  of  the  drop  may  not  yet  be  in 
sight,  for  Mocatta's  circular  tells  us  that  offerings  of 
the  metal  from  NewYork  have  been,  large,  and  the  in- 
ference is  drawn  that  the  Washington  Treasury  "  may 
be  considering  the  advisability  of  realising  some  of  the 
$400,000,000  silver  held  against  silver  certificates  and 
issuing  Federal  reserve  notes  of  $1  and  $2  in  their 
place."  We  should  doubt  whether  that  change  wiU  be 
made  in  haste,  but  as  the  China  exchange  continues  to 
weaken,  preventing  any  buying  from  that  quarter,  it 
does  not  seem  probable  that  the  silver  market  will  harden 
much  at  present.  According  to  Montagu's  circular,  the 
stock  of  silver  in  Bombay  on  January  15  was  300  bars 
lower  than  the  week  before  at  3,400  bars.  In  Shanghai 
on  January  19  the  stock  was  2,200,000  ozs.  up  at 
27,700,000  ozs.  in  bullion  and  $100,000  higher  in  coin 
at  $13,100,000. 


Applications  for  the  Rs.  60,00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Rs.  2,19,55,000.  Of  these 
f^s.  55,49,000  were  allotted  in  deferred  transfers,  and 
Rs.  4,51,000  in  immediate  transfers.  Tonders  for  bills  and  de- 
ferred transfers  at  js.  4  29-32d.  and. for  immediate  transfers 
ait  IS.  5d.  received  about  27  per  cent.  Since  April  last 
Rs.  32,20,00,000  have  been  sold,  realising  ;^26,878,696.  Next 
week  60  lakhs  will  again  be  offered. 


BANK    OF    ENGLAND, 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 
Week  ending  on  Wednesda>.  January  23,  1918. 


ISSUE     DEPARTMENT. 


Notes  l3!>ued 


£ 

76.233.035 


£76,233.035 


Government  Debt.. 
Otlier  Secnrittes    ., 
Gold  Coin  and  Bullion 
Silver  Bullion 


£ 
11,015,100 

7,4^4.900 
57.783.035 


£76.233035 


BANKING   DEPARTMENT. 


£ 
Proprietors'  Capital         ..      14,553,000 

Resl 3.377.302 

Public  Deposlts(includlDg 

Exchequer,      Savings 

Banks,  Commissioners 

of  National  Debt,  and 

Dividend  Accounts)  ,.  41,814,592 
Other  Deposits  ..  ..  124,440,103 
Seven  Day  and  other  Bills  10,829 


Dated  January  24,  1918. 


£184,195,826 


Government  Securities 
Otlier  Securities    .. 

Notes 

Gold  and  Silver  Coin 


£ 

.839,851 
214.194 
,010,130 

.I3".65' 


£184,195,826 
J.  G.  NAIRNE,  Chief  Cashier 


BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
Jan.  24. 


£ 

3.471 

50,721, 

139,231 

26, 

133.870 
37,836,: 
36,288, 


f 

38,784,905 
56,623,040 

I9'i  p.c, 
54  „ 


Liabilities. 
Rest 

Pub.  Deposita 
Oilier    do. 
7  Oay  Bills 
Assets. 
G.iv.  Seouritles. 
Other        do. 
Total  Reserve .. 


NoteClrculatloD 
Coin  and  Bullion 
Proportion 
Bank  Rate 


Jan.  16, 
igi8. 

£ 

3,302,587 

41,416,146 

121,589,360 

18.243 

56,763,151 
92,278,457 
31,892,728 


£ 

45.325.380 
58,768,118 
196  p.c. 
5      .. 


Jan,  23, 
igi8. 


£ 

3.377.302 

41,814,592 

124,440,103 

10,829 

56,839,851 
95,214,194 
32,141,781 


£ 

45,222,905 

58. 914,086 

19-3  p.c. 

5       ., 


£ 

14.715 

398.446 

2.850,743 

Decrease. 


3,263,904 


Increase. 
£ 


Decrease. 


7.414 
Increase. 

71,700 

2,935.737 

249.053 


3.263,904 


Deorease. 

102,475 
146.578 
•3  p.c. 


LONDON   BANKERS-   CLEARING, 


Date. 

1917. 

1916. 

Increase. 

Decrease. 

December 

£ 
1,439,206,000 

1,204.438,030 

£ 

234,768,000 

£ 

Total 

19.121,196,000 

'5.275.040.000 

3,846,150,050 

- 

January  2 

..  23 

1918. 
400,652,000 
455,0^6  000 
400,636,000 
403,702,000 

1917. 

389,111,000 
37J,702,oo) 
350,0:13  000 
36:),t?2  000 

li,54T,roo 
78  35t,ooo 
50.573.000 
43,514,000 

- 

Total 

1,658,126,000 

J. 475.993.000 

184,032  000 

- 

92 


Zhc  Jnpestors'  TRevtew. 


January  26,   1918. 


CURRENCY   NOTES. 

Return  of  Corrtney  Notes  for  the  week  en,Ieil  lannary,,,  „,,K 

Issued, 

Cancelled. 

Outstanding. 

£1  notes         

io«.  notes       

Note  certificates 
Previous  total 

i 
3,310,600 

975,655 

100,000 

8o7,^27,t;r»i 

£ 
3,300,418 
1,234,239 
450,000 

596,5'<6,469 
601,571,136 

£ 
■52,374,397 
36,618,584 

21,150,000 
210,741,394 

Sii,7l4,ii« 

210,142,981 

Ratio  oF  gold    helil  aeainst  notes,    lliia  w«ek 

15.06  n  c.  :  last  week  15.3  p.r. 

PUBLIC  INCOME  AND  EXPENDITURE. 

(For  7  days  ended  Jan.  19.) 


Revknue. 


Expenditure. 


'Ctistoms         ..        ..        ,.  1,252,000 

Excise 1,915,000 

f  state,  &c.,  Duties  ..         ..  408,000 

tamps 59,000 

,Land  Tax  and  House  Duty  2*0,000 

Property  and  Income  Tax  12,076,000 

Excess  Profits  Tax..         ..  5,1127,000 

Land  Values   ,,         ..         »«  ico,oco 

Post  Office i,coo,oco  ■ 

Crown  Lands — 

Sundry  Loans 17,875 

'Misceflaneous 157,000 

Bullion  advnnces  repaid    ..  200,000 

ForTreasuryBillc  for  Supply  53,721,000 

5%  Exchequer  Bonds,  1932 . .  — 

6%  Exchequer  Bonds.  1920. .  — 
Nation-l  War  Bonds         .  .*26,i45,ooo 
War  Expenditure  Certificates       — 

War  Savings  Certificates..  2,6oo,oco 

4%  War  Loan,  1929-1942  (  _ 
5%  War  Loan,  1929-1947  f  '  * 
Other  Dtbts  created   under 
War  Loan  Act,  1915,  and 

Finance  Act,  igi6. .         ..  16,126,936 

Telegraph  Money  Act,  IQ13  — 
Under  Post  Office  Rly.  A<k, 

1913 — 

lUnder  Military  Works  Act, 

1897-1903       — 

Under  Public  Buildings    ..  — 

Under  Housing  Act..         .,  — 
Repayment  of  Advance  fdr 
Interest     on     Exchequer 

Bonds            — 

China  Indemnity      ..         ,.  — 
East    Africa    Loan     repay- 
ments   — 

'Svez  Canal  Drawn  Shares. .  — 

Ways  and  Means  Advances  5,000,000 
Decrease      in      Exchequer 

balances       1,031,425 


£128,789,236 


National  Debt  Service       . .  2,342,934 

Inter  st,    &c.,  on  War  Debt  767,151 

Development  &.  Road  Impvt  — 

Paymenis  to  Local  Taxation  79,tx;o 
Other    Consolidated    Fund 

Charges        — 

Supply  Services       ..         ..  57,523,000 

Bullion  Advances     ..         ,.  50,000 
For    Advar  ce    for    Interest 
on  Exchequer  Bonds  un- 
der   Capital   Expenditure 

(Money)  Act,  1904  . .         . .  — 

For  Treasury  Bills  ..         .,  58,736,000 
War  Loan  and   Exchequer 

Bonds           . .         . .         . .  1,402,384 

OtherDebt  under  War  Loan 

Acts,  I9u-f6           ..         ..  2,675,761 

For  l-xchequer  Bonds  under 
Section  5i  of  Finance  Act, 

1916,  and  Seciion  34.  1917  — 
Under    Telegraph    (Money) 

Ace,  1913 — 

Under    Post    Office     (Lon- 
don) Railway  Act,  1913  ..  — - 
Under  Militar.  Works  Acts 
Und^r  Hdnsing  Act,  1914..  — 
Public    Buildings   Expendi- 
ture Act,  1903         . .         , ,  — 
Old  Sinking  Fund,  1907-8..  — 
Sinking  Fund,  1914..         ..  — 
China  Indemnity      ..         ..  — 
East  Afrrcan  Loan  . .           . ,  5,940 
Cunard  Agreement  Act      . .  — 
Depreciation  Fund  ..         ..  1,000,000 
Suez  Canal  Drawn  Shar*s. .  —    ' 
TtmporaryAdvanc  s  Repaid  6,500,000 
Increase       in       Exchequer 
balances        — 


£128,789,236 


♦Ex^ludmg  sales  through  banks  which  have  not  yet  been  brought  to  account. 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.), 


Dec.  28,  1917, 

Dec.  21,  1917. 

Dec.  29,  1916. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

£ 
99,983,400 

63,504,0  JO 
lO.SOf'OOO 

£ 
104,870,000 

60,9  0  8uo 
lr,.^00,000 

56,317,600 
34,094,200 

Total  gold  held  by  banks 
Gold  with  Fi  deral  Res.  Agent 
Gold  Redemption  Fund 

1731^,^7.400             176,290,800 
156,370.200           149,. 61, 400 

3, f^  9,0-0                  3.55f>-4'^'0 

90  411,800 

56,^04,600 

330,800 

Total  gold  reserves    .. 
Legal  tender  notes,  silver,  &c. 

334,226,600      1     329,108,600 
9,927.000       1          0.625.400 

147,247,200 
3.507,000 

Total  reserves  . . 
Bills  discounted— Members' . . 
Bills  bought  in  open  market 

344,15.^.600 

I    6,I4I,2C0 

•S5. 073, 7^0 

»%734  000 
i^S  701,800 

55. 588.6.10 

150,754. Soo 
6,03y,20O 

2^   4111,401 

Total  bills  on  hand     .. 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec.      , 
Municipal  warrants      . . 
Loans  on  gold  coin  and  bullion 

191,^14,400 

9,670,000 

11,776,600 

201,000 

194  21,0,400 
10,087,600 
11,626  000 

920,40. 

31,^33,000 
8,849,400 

2,233,400 
1,795,000 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n. 

Uncollected  items 

212,862,000 
2,387,200 

fO. 221, 400 

2l6,224,4'JO 

8,275.0  0 

64,714,800 

44,410,400 
9,391.600 

Total   dfcdctns.  fm  gross  dep. 
5%Red.Fund  agFed.Res.bknts 
All  other  resources 

62,6o.-*,0«.o 
107,400 

56?. 6  0 

72,989,800 
107.400 
515.600 

9,391,600 
80,000 

1,247,000 

Total  resources 

620,,9],2(-0 

628.   91.200 

205,889  800 

Capital  paid  in 

Government  deposits  . . 
Due  tomembrs-Res.  account 
Due  to  non-mbrs — cteariniE  ac. 
Members'  bank  deposits—nelt 
Collection  items 

14,088  400 
21,641,600       ' 
290.633.200 

38  338,600 
3.591,000 

13  97o,4'JO 

44.352,200 

277,866,800 

41,163,800 
2.8=ii.6oo 

11,139  300 
5,757,400 

133,757,200 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R,  bk  nts  in  circn— nettliab. 
All  other  liab,  in  for  Govctdts 

354.207,41.0 

249.297.600 

1,600,000 

i.ioo.yoo 

366.234,400 

245,528,400 

1,6^0,000 

1,238.000 

139,524,600 
55,070,6^0 

155,600 

Total  liabilities 

620,21^4,200 

628,591,200 

205.889,600 

G(fd  res.  ag  nett  deposit  liab 
Gold  &  lawful  money  reserve 

a^inst  nftttdeposit  liabilities 
Golijres  aeF.X^nt^  in  ant  circ 

597% 

63.1% 
64-% 

60.1% 

634% 
62.2% 

699% 

7^.2% 

103.2% 

N€W   YORK  ASSOCIATED    BANKS   (dollar  at  4s.). 


Jan. 19, 1918.    Jan. 12,1918.  Jan. 5, 1918.    Jan. 20,1917 


Loans        

Reserve  held  in  own  Vaults  . . 
Reserve  held  in  Fed.  Res.  Bk. 
Cash  in  own  Vaults 
Reserve  held  in  Other  Depos. 
Nett  Demand  Deposits 
Nett  Time  Deposits     .. 

Ciiculation         

BzcesB  Lawful  Reserve 


814,310,000 

4,ori2,ooo 

106,906,000 

32,706,000 

1^790,000 

746,290,000 

3949^.000 

6,810,000 


l,i6S, 


Lawf«l  Reserve  Qossists  of 
Time  Deposits. 


Si8,i6S,ooo 

4,074,000 

106,406,00c 

23,334.000 

1,790,000 

737j986,oeo 

39,582,000 

6,816,000 

1 3.852.000 


825,988,000 

3,990,00c 

104,616.000 

2a,4tG,coo 

1,776,000 

720,240,000 

38,566,000 

6.810,000 

14,^24.000 


£ 

685,484,000 

109,278,000 

38,870,000 

11,246,000 

7.6, 242,000 

32,768,000 

5,740,000 

37.392,000 


NBW  YORK  STATE  BANKS  ft  TRUST  COMPANIES  (dollar  at  4s.). 

Jan.  19,  1918. 

Jan.  12,  1918. 

Jan.  5, 1918. 

Jan.  20,  X9X7- 

Loans  ..        ••        •. 

Specie 

Deposits 

Legal  Tenders 

164.250,000 

3.566,000 

169,492.000 

14,976, roo 

iCo.  592^000 

3,432,000 

167.292.000 

i5,5s8.o'vi 

163,090,000 

3,672,000 

168,514,000 

iV428,o->o 

1 49.038.000 

12,650,(00 

160,443,000 

2  ot6,ooo 

BANK 

OF  FRANCE   (25  francs  to  the  £). 

Jan.  24,  1918. 

Jan.  17,  1918. 

( 
132,880761 

Jan.  10,  1918. 

Jan.  as,  1917. 

Gold  In  hand 

£ 
132.941,880 

132,816,320 

( 
132,076,040 

Silver  In  band 

9.916.760 

9.834,880 

9  844,360 

11,278,800 

Bills  discounted 

35.75!, 500 

35.532,920 

38,328,610 

27.775, '60 

Advances 

48.301,680 

48,3i2,o8o 

48,f'O7,240 

50  595  960 

Note  circulation 

926,505,360 

922,500,160 

919,311,6^0 

693,127,920 

Public  deposits 

2.400,720 

1,912,6,0 

6,260,560 

1,971,080 

Private  deposits 

113,407,120 

114,283,080 

107,879,200 

92,188,360 

Pnretpn  HilU,. 

5'i6.3'>0 

209961 

191,96-) 

2I0,'(10 

Proporuon  between  bullion  .itid  circolation  24.)!  per  cent.,  against  24.30  per 
cent,  last  week.  Advances  to  the  State  £506,000,000,  unchanged.  'rh« 
adjourned  payments  of  drafts  in  Paris  on  account  of  ilie  moratorium  £20,035,080, 
decrease  £53,360,  and  at  the  branches  £25,15^,400,  decrease  £45,600. 

IMPERIAL  BANK  OF  UBHMANY  (20  marks  to  (he  £1. 


Jan.   15,  1918    Jan.  7, 1918.  Dec.  31,  1917.  Jan.  15, 1917. 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances 
Note  circulation 
L)epo.iits 


»25989,35o 
62,968,700 
640,679,2^0 
33'',050 
552,197,300 
329,054.100 


125,878,150 
66,951,650 

658.320,900 

334,650 

567,163.250 

311,520,750 


129,396,800 
65.239,500 
729,805,3  o 

255,550 
573,587,450 
402,514.450 


126,978,700 
13,599.4"0 

430,725.750 

4«8J0 

386.312,200 

195  874.>50 


Cleanng  House  return   during   Uccember   £4'>7,637,7t'5,  against  £424,889,70} 
in  November. 

BANK  OF  NORWAY. 


Jan.  7, 1918. 

Dec.  Ji,  1917. 

Dec.  22,  :9'7 

■  Jan.  8,  1917, 

£ 

£ 

£ 

£ 

Cold 

6,413,000 

6,414,000 

6,274,000 

6,631,000 

Balance  abroad  and 

Foreign  Bills 

4,768,000 

4,844,000 

4,816,000 

4,577,<:oo 

Gover'nt  Securities. . 

715.000 

717,000 

717.000 

767,000 

Discounts  &  Loans.  . 

21,503,000 

22,388,000 

21,095,000 

8,378,000 

Notes  in  Circulation 

17,394,000 

17,985,000 

18,330,000 

l3;272,ooo 

Deposlis  at  notice.. 

11,938,00c 

12,179.000 

1 1 ,069.000 

.     ;«,230,00« 

BANK    OP    SPAIN  (25  pesetas  to  the  £), 


Gold        

Silver 

Fo  eien  Bills 

Discounis  r\na  Snort  BlHa  .. 
Treasury  Account.  &c.  ,. 

Notes  in  Circulation  .. 
Current   Aooounts,  Deposiu 
Dividends,  Interests.  &c.     . . 
Governmenl  Securities 


Jan.  12. 1918  Jati.  s>  <9i8  Dm. 


78,690,479 

28,296,124 

3,613.878 

28,971,099 

26,825,713 

112,746,814 

38.178,587 

2,507,058 

1,799,075 


( 

78,680.107 

28,294.329 

3,632,389 

29.520,743 

26.801,509 

112.541,176 

38  680,377 

2,582,760 

2,025.557 


.«9,i9r7J 


jMi.  n.'9«9- 


£ 
78,672,630 

28,421.539 
3.575,663 

29.051.306 
26,801,704 

ii',3'3.3'6 

38,046,135 

1,090,  M7 

.   2.854,48« 


£ 

50,875.^ 

29.637.75' 

3.498.«n 

2«,984,l^ 

27,654,470 

95.258,92^ 

30,269.589 

2.113.321 

1.8'4.9» 


BANK    OF    SWEDEN. 

1  Dec.  fig,  1917. 

Dec.  22.  1917. 

Dec.  15. 1917. 

Dec.  30. 1916. 

Gold 

13,580,000 

£ 
13,014.000 

12,831,000 

£ 
10.195.00. 

Balance    abroad  and 

Foreign  Bills 

7,123,000 

6,973,000 

6,934,000 

«.7<H,««» 

Swedish  and  Foreign 

Govt.  Securities  .. 

4.440,000 

4,440,000 

4,440.000 

3.495.000 

OisGOuntsand  Loans 

16,751,000 

16,146,000 

14,100,000 

9,835,000 

Notes  in  oiroulption 

30,81*3,000 

31.037.000 

29,564,000 

23.195.000 

Deposlt<>  at  notire  ,. 

11,324,000 

10.2'<2.000 

9.^  2.000 

8,245.000 

LONDON  COURSE  OF 

EXCHA 

NGE. 

Usanc. 

Jan.  22.  1918. 

Jan.  24,  1918. 

Place. 

Sellers.|  Buyers 

Sellers. 

Bayers. 

Amsterdam  . .     . . 

Paris      

Switzerland..     ,. 

Petrograd     . .     . . 

Genoa,  Ss.c 

Spain      

Lisbon  and  Oporto 
Copenhagen..      .. 
Christiania  ..     .. 

PtAr^Vtn'm 

Cable  transfers 

Three  months' bills..     .. 

Cable  transfers 

Three  months'  bills. .     . . 

Cable  transfers 

Tbrer  months '  bills  . .     . . 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Three  months'  bills  . .     . . 

Cable  transfers 

Cable  transfers 

Cable  transfers ..     ..     \, 
Ca'^'e  tr3n.;ters  . .      .. 

10.77 

10.95 

27.14 

2753 

21.00 

2135 

360 

3995 

'9-53 

57l 

291 

13.13 
14.50 
n  q6 

ia.82 
11.05  . 

27.19 
27.5S 
21.10 
21.45 
365 

4005  . 
19.63 

58i 

301 
15.23 
14  .(:0 
14.06 

10.72 
ia.85 
27.13 
27.53 
21.07 

21.42 
355 

40.15 
19.60 

VI. 
15.18 
14.50  1 

14.00  ■ 

■0.77 
10.95 

27.18 
27-58 
21.17 

4025 

a 

14.6. 
1410* 

OPEN   M4KKET  OISCOUNT 


Thirty  and  sixty  day  remttted 
rh(ee  LUOUiUb 
Pour  months  m 

Six  months  , 

Three  months  fine  inland  bills 
Pour  months 
Six  months 


Lasi  week. 

Per  cent. 

..  3l-4     - 

..     4-Al    ■• 

::  4ri* .: 

..  4i-5     . 
..  44-5     . 

..  4J-5     . 


This  week 
Per  cent, 

.     4i-5 


18%  of    the  Demand  Depoeita  and  3%  «f    ^< 


BANK    AND   DEPOSIT    KATES.    Last  week  This  i 

Per  cent.     Per  ceni. 

Baok  of  England  minimum  discount  rate         5        ••        5 

,,  ,,         short  loan  rates  

Bankers'  rate  on  deposits 

Bill  brokers' deposit  rate  (call) 

„  7  and  14  days'  notice  

Cvrreot  rates  for  7  day  loans  

,,  forcall  loans  


A 

3*-i 


3l 
3i 


January  26^   igi8. 


(The  Jtivestors'  IRevtew. 


93 


FOREIGN   RATES    OF   EXCHANfiE   ON   LONDON. 


0 


Method  of 

Last 

This 

Quoting. 

III 

Week. 

Week. 

Francs  10  £^1 

2-,.12i 

27.10 

27.144 
10.744 

Amsterdam,  cheques 

Florins  to  ^i 

12.107 

10.80 

Italy,  sight 

Lire  to  ^i  .. 

25.224 

39  95 

40.224 

Madrid,  sight 

Pesetas  to  f  i 

25-224 

i(j.8o 

19.70 

■■  Lisbon,  sight 

Pence  to  milreis  .. 

53jd. 

29jd. 

298d- 

Switz'*rland,  sight    .. 

Francs  to  jf  I 

25224 

21.C24 

21-10 

Christiania,  siieht 

Kroner  to  fi 

18.159 

14.50 

14-57 

Stockholm,  sight 

Kroner  to  f  i 

18.159 

1395 

14.024 

•  Copenhagen,  sight   .. 

Kroner  to  £r 

18,159 

■5.24 

15-24 

-  Pctrograd,  sight 

Roubles  to  £xc     .. 

94-57 

303 

365 

,  Alexandria,  sight 

Piastres  to  ^i 

974 

9^,*31 

974 
I/4« 

Bombay,  T.T.            ., 

Sterling  to  rupee.. 

1/4 

l/4iJ 

Calcutta,  T.T 

Sterling  to  rupee.. 

1/4 

I/4,l4 

l/4lt4 

Hong  Kong,  T.T 

Sterling  to  dMllar.. 



3/0J 

2/114 

Shanghai,  T.T. 

Sterling  :o  tael     .. 

— 

4/44 
2/4A 
2/4 

*i-i 

Singapore,  T.T 

Yokohama,  T.T 

Sterling  to  dollar.. 
Sterling  to  yen     .. 
"Dollars  to  £1 

24.58d. 

2/4A 
2/4, 

New  York,  cablo 

4.86§ 

4-761 

4-76J 

Buenos  Aires,  T.T... 

Pence  to  dollar    ., 

47-58d- 

5ljd. 

50:  d. 

Valparaiso,  90  days.. 

Pence  to  peso 

I3«d 

13S1- 

Pence  to  dollar     .. 

5ld. 

584U. 

5?^- 

Rio  de  Janeiro,  90  days    .. 

Pence  to  milreis  .. 

l6d. 

'3§|d. 

i3Sd. 

II 


I 


The   Week's    Stock    Markets. 

It  cannot  be  said  that  there  has  been  very  much  to 
encourage  markets  this  weelc.  What  may  happen  in 
Russia  no  one  can  foresee,  and  although  it  is  cer- 
tain that  ultimately  the  country  will  emerge  success- 
fully from  the  present  conditions  of  chaos  and 
anarchy,  there  may  be  a  longish  road  to  travel  before 
any  semblance  of  order  is  restored.  Some  people 
think  that  we  are  not  such  a  great  deal  better  off 
hpre,  with^  the  House  of  Commons  almost  completely 
muzzled  for  all  practical  purposes,  and  the  gutter- 
press  apparently  supreme  in  the  counsels  of  the  War 
Cabinet.  But  when  thieves  fall  out  honest  folk  may 
come  by  their  own,  and  when  we  look  below  the  super- 
ficial bluff  of  the  moment  and  think  of  the  relation- 
ships that  must  exist  between  the  Junker,  the  Aus- 
trian, the  Hungarian,  the  Turk,  and  the  Bulgar,  there 
ought  to  be  plenty  to  hearten  us.  Of  course,  busi- 
ness on  the  Stock  Exchange  has  necessarily  been 
affected  to  some  extent  by  the  great  success  of  the 
.Tank  efforts  to  obtain  war  subscriptions  in  the  pro- 
vinces, and  there  is  not  much  to  go  for  at  present 
in  any  of  the  more  speculative  sections.  The  first 
Home  Rail\^'ay  dividends  were  just  what  had  been  ex- 
pected, and  they  had  no  appreciable  effect.  Among 
Breweries,  something  of  a  sensation  was  caused  by 
the  City  of  London  dividend  announcement,  but  it  had 
little  influence  outside  the  stocks  immediately  con- 
cerned. Some  Industrial  shares  still  met  with  a  good 
deal  of  support,  but  the  Rubber  market,  which  has 
held  the  leading  place  for  a  long  time  past,  has  re- 
lapsed into  a  condition  of  dulness  and  indifference 
which  will  require  some  sharp  stimulus  to  overcome. 
The  Argentine  Railway  market  has  been  about  the 
best  of  the  lot  in  some  respects,  owing  to  the  smart 
recovery  in  traffics,  but  the  labour  troubles  are  not  yet 
all  settled,  and  we  must  wait  a  little  longer  to  see  to 
what  extent  the  mass  of  the  people  or  their  leaders 
■have  been  affected  by  Luxburg  principles. 

Just  about  a  moderate  avernge  amount  of  business  has  been 
done  on  the  Stock  Exchange  this  week,  and,  on  the  whole,  the 
tone  has  been  rather  uncertain.  To  begin  with,  the  active 
''Tank"  campaign  for  the  War  Bond  subscriptions  in  the 
provinces  has  undoubtedly  withdrawn  a  certain  amount  of  money 
that  would  otherwise  have  come  to  Throgmorton  Street,  and,  on 
thte"r>ther  hand,  the  Russian  news  and  a  certain  amount  of 
political  unsettlenjent  at  home  has  been  an  adverse  •  factor. 
Among  gilt-edged  stoclds,  the  War  Loans,  Consols,  the  Irish 
La'nd,  and  County  Council  have  all  given  way  fractionally,  but 
iBank  of  England  stock  gained  a  point.  Colonial  issues  started 
off  with  a  considerable  amount  of  strength  on  a  small  invest- 
ment demand,  but  except  for  one  or  two  New  South  Wales 
issues  the  gains  were  usually  limited  to  J^  or  J4-  In  the 
Foreign  division,  Russians  have  naturally  been  most  prominent, 
and  they  have  persistently  fallen  point  by  point  almost  every 
day,  the  total  declines  beginning  to  look  decidedly  serious. 
Towards  the  end  the  feeling  was  a  trifle  more  hopeful,  but  it 
did  not  affect  quotations  appreciably.  Spanish  4  per  cents, 
gained  a  point,  and,  curiously  enough,  Bulgarian  6  .per  cents, 
jumped  3,  but  whether  this  is  an  indication  of  what  may  pro- 
bably eventuate  in  the  Balkans  in  the  near  future  it  is  im- 
possible to  say.  Chilean  1;  per  cents.,  Peruvian  Government, 
and  Uruguays  all  made  a  forward  movement. 

Home  Rails  began  the  week  well,  but  afterwards  reacted,  and 
became  perfectly  stagnant.    In  anticipation  of  the  first  dividend 


I  Last 
IWeek 


This  II 
Weeltl 


Coasols 

Wat  Loan   3i% 

44% 

M  5%   1929-47- 

4%.  I9i9-t2. 

India  3%  

„     34% 

Australian  5}%,  1920-22  . 

Canada  4%.  1940-60 

44%.  '920-5  

N.S.W.  4%,  1933 

Argentine  4%,  1900 

BelKian  3% 

Brazil,  1913 

..       5%.  1914    

Chinese  1896  

,.       1912  

Eeypt  Unified  4% 

Caledonian  defd 

Gt.  Central  pia 

dfd 

Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd.  . 
London  Cbathatn  ord. . . . 


n 


Canadian  Pacific   

B.  Indian  Guar.  44  %  debs, 
Grand  Trunk  ord.    

Do.  1st  pf 

Do.  3rd  pf 

Antofagasta  dfd 

Brazil  Common 

B.  A.  &  Pacihc , 

B.  A.  Gt.  Southern 

B.  A.  Western    

Anglo-South  American   . 

Bank  of  Australasia 

Bankof  N.S.  Wales 

Barclay  &Co.  "  A" 

Do.       "B" 

Capital  8t  Counties   

chartered  of  India    

Hongkong  &  Shanghai    . 

Lloyds  

London  &  Brazilian 

Armstrong,  Whit  worth  .. 
Birmingham   Small  Arms 

Cammeil-Laird 

Cargo  Fleet 

Dorman,  Long  


5^4 
86} 

99" 
93 
1014 
J54 
64J 
97* 
814 

8l4 

674 

63i 

70 

804 

94 

83 

85 

8i 
»34 

6} 
361 
l8 
87 
67I 
60 

8| 

160 
84 
94 
53. 


1324 

5 
40 

I7i 

7i 
117 

36 

76 
124 

244 

704 

88 

25 

244 

41/9 
54/ 
7 
24/3 
40/x 


Associated  Cement 

Borax  dfd 

Bovrll    

Brazil  Traction  

British  Amer.  Tobacco  pf, 

British  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Kellner 

Coats 

Courtaulds 

Cunard 

Dennis  Bros 

Eastern  Telegraph  ; 

l£astmans 

English  Sewing  Cotton  ., 

Anglo-Egyptian  "B"  .... 

Baku  (los.)  

Burmah 

Lobitos 

Maikop  Pipeline   

Mexican  Eagle  pf 

Allagar2/- 

Anglo-Java  Rub.  2/-     .... 

Anglo-Malay  2/ 

Ayer  Kuning  £1 

Batang  Malaka  2/- 

Bekoh  2/- 

Brit.  N.  Borneo  Trust  £1 

BukitCloh2/- 

Bukit  Kajang  £1 , 

Bukit  Mertajam  2/-  

Bukit  Sembawang  2/-  . . . . 

Carey  United  £1  

Ceylon  Para  2/- 

Chersonese 

Chevijt2/-  

Dalkeith  2/- 

Eastern  Invest.  Trust  £1.. 

Grand  Central  £1 

Gula  Kalumpong,ri 

Highlands  £t 

Java  Investment  £1 

Java  Para  ^ I  

Johore  Rubber  Lands  £1.. 

Kamunin .'  2/- 

Kinta  Kellas  2/- 

Kuala  KL.bu2/- 

Labua/- 

Langen  Java  £1 

Linggi2/- 

London  Asiatic 2/- 

Malacca  £1 

Malayalam  £t 

Merliinau  2/-   

Padang  Jawa  2/- 

Pataling2/- 


3/4  I 
7/3  I 

I4'3 

51/ 


3/3 

7/ 

!3/6 

50/ 


4/104,    4/74 
4/74  I   4/64 


16/ 
5/4 
75/ 
4/9 
3/64 
46/ 
10/ 
3/6 
6/6 

3/ 

27/3 

c8/ 

15/3 

61/ 

3"/ 

3^/6 

35/6 
4/4 
4/6 
3/3 

10/ 

45/ 

2S/3 

8/loJ 

58 

41/6 

5/8 

3/9 

44/6X 


,      •■71 
.    5/4 

71/3 

4/74 

3/44 

45/ 
10/ 
3/6 

6/4 

3/ 

25/9 

27/9 

36/ 

60/ 

3»/ 

3"/9 

33/6 

4/3 

4/6 

2/104 

9/9 

45/ 

27/ 
8/6 
54 

40/ 

5/4J 

3/9 

43/» 


Abbontiakoon  (10/-) 

Bechuanaland  Exp 

Brakpaii  

Broken  Hill  Prop.  (8/-)   .. 

Cam  &  Motor 

Central  Mining  (^^12)  .... 

Chartered    

City  Deep      

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (to/-) 

,  De  Beers  did.  (£2  1011.)  . . 

East  Rand   

Geduld 

Gov.  Areas  Mot?     


N.S.W.  44%5yr.bds..... 

„      44%. '922-7 

.,        5%. '921-3 

5}%.  1920-2  . . . . 
New  Zealand  4%,  1929  . . 
Queensland  4% 

„  44%.  '920-5    .. 

Union  of  S-  Africa  44%, 

'9^0-5     

Victoria  44%.  1920-5. . . ..  . 

Westn.  Aus.  4%    


Last 
Week 


French  War  Loan,  5%  . 
Japan  44%  (isl),  1905    ... 

.,        5%  '907 

Mexican  5%,  1899    

Russia  4   % 

„      4i%. '<>"9 

..      5%.  "906 

London  and  N.-W-     ... 
London  and  S--W.  dfd.  . 
Do     red.  pf.  1914 

Metropolitan  

Do.       5%      pf.. 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastern 

Stb.-Easlern  dfd 

Chesapeake 

Erie 

Southern 


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San   Paulo  (Brazilian).... 

United  of  Havana 

London  City  &  Midland. . 
London  County  &  West?. . . 

London  Joint  Stock 

Nat.  Prov.  ot  Eng.dC'oJ  Pd) 
Do.  (£12  pd) 

Parr's    

Standard  of  S. A 

Union  Discount 

Union  &  Smiths 


Kynochs   

Mond  Nickel  ord 

Soiitb  Durham  Steel 

Thornycroft    

Vickers 


3? 

3i 

39/9 

42/ 

20/6 

21/ 

46? 

45J 

18/6 

18/6 

33/6 

33/6 

3'/9 

33/3 

43 

"^ 

3A 
61 

1^ 

7 

(>H 

4A 

4'^ 

"' 

"', 

iSiJx 

1514" 

9/ 

91 

56/3 

56/3 

Fine  Cotton  Spinners 

Forestal  Land 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay    ....i 

Imperial  Tobacco  '  G  '  pf 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  &  F 

P.  &0.  dfd 

Royal  Mail 

.Underground  Inc.  Bds.  .. 


28/9 

29/ 

'/9 

1/9 

7i 

78 

^^ 

2^ 

3/ 

3/ 

63/6 

63/ 

North  Caucasian 

Roumanian  Cons 

Royal  Dutch  (lOO  gulden) 

Shell 

Spies  (10/-) 

Ural  Caspian 


Perak2/-   

Port  Dickson  2/-   

Rub.  Estates  Johore  £1.. 
Rub.  Estates  Krian  2/-. 

Rubber  Trust  ^i 

Sampang  (Java)  2/-... 
Sapumalkande  £i     ... 

Seaport  £1 

Selangor 

Sengat  2/- 

Seremban  jf  I 

Shelford/;i 

Sialang  £1 

Singapore  Para  2/-    ... 
Singapore  United  2/-    . 

Soember  Ajoe  2/- 

Stagbrook  £1 

Straits  Bertam  if- 

Sumatra  Para  2/- 

Sungei  Bahru  £'i   

Sungei  K^par  2/-   

Sungei  Kruit  £1 

Taiping  2/-  

Tali  Ayer  £1  

Tandjoiig  £s  

Tandjong  Malim  £1... 

Tebrau  £t   

Telogoredjo  £1 , 

Tempeh  2/- 

United  Serdang  2/-  ... 
United  Sumatra  2/-  ... 

Vill  d'Or  2/- 

Vallanibrosa  2/- 

Way  Halim  1/8  pd.   ... 


4/14 

4/3 

7/6 

7/6 

58 

5,i, 

57/ 

56/ 

11/3 

12/9 

6<Vx 

bfti 

15/3 

15/9 

3A 

35/3 

% 

20/6 

20/ 

2A 

2 

'3il 

'3i 

18/b 

6/9 

3^ 

2 

Gt.  Bbulder  (2/-r    .... 

Kyshtim .;. 

Mashonaland  Agency 
Meyer  &  Charlton    .. 

Modder  "B" 

Do.    Deep 

Mysore 

R.nd  Mines  (s/-)   .... 

Rio  Tintol^s)   

Ru«so-Asi  itic 

Spring  Mines 

raiig.4nyika 

Tanalyk    

Van  kyn  Deep  ...... 


Week 


9S4 
90 

95 

97 

854 

Soi 

93 

9« 
93 

79 

798 

99 

Q14 

60 

414 

42 

5ii 

924 

24J 

94 

234 

77 

■5* 

584 

>3S 

98i 

30 

2l4 


59J 
38 

194 

1814 

75 
8 

24! 
264  X 
304 
31 


274 

36/6 
31 
40/6 
40/ 
43/ 

37/ 

48/ 
60/ 

1 
7^ 

336 

19/9 

3t§ 

34 
20(3 
176 

3414 
125 
82 

16/6 
9/6 

SH 
7/ 

a 

7/.  04 

4/3 
43/6 
4/4 
29/3 
2/10 
27/ 
28/3 
35' 7«. 
3/5* 
45 
45/ 
70I 
4/7i 
3/44^ 

3/'i 
33/6 
6/104 

9/4* 
39/" 
11,44 
56/ 

4/44 
38/ 
9'/ 
3'/9 
*5/ 
47/ 
2/9 
11/ 

8/6 
4/14 
24' 

2/6 

13/6 
'■fe 
7/i4 
6ti 
88 

7i 

h 

644 

3iS 


99 

90 
97 


8oi 
94 

9» 
94 
79 

79l 

99 

92 

60 

37i 

it% 

48J 

93 

244 

94 

23i 

77 

15J 

59 

14 

9Si 

30 

^\ 

2I» 

254 


60 

182 

75 

Si 

'54^ 

244x 

264X 
30U 
314 

XI 

2?i 

37/. 
3J1 
4'/9 

42/6 

36/1 
47/6 
60/3 

2? 

78 

33/6 

20/3 
17  6 

340* 
125, 
8ii 


6/6 

« 

7/104 

4/3 

43/6 

4/ 

28/9 

2/7i 

2S/ 
27/ 
34/6 

3/7 
40/9i 
40/6 
67/6 
4/4i 
3/3 

2/11 
33/6 

6/6 
9/ 
39/» 

ii/4i 

56/ 

4/14 

37/6 

87/6 
31/9 

61/9 

45/ 

2/8 

10/104 

8/6 

4/'4 

23/3 

2/6 

13/6 
'i 

k 

3W 
391 


94 


TLbc  Jnvestore'  TRevtew* 


January  26,   1918. 


announcement  there  was  a  renewed  show  of  strength,  but  the 
Metropolitan  distribution  did  not  encourage  the  bulls,  and  the 
market  fell  back  into  a  condition  of  perfect  indifference. 
American  Kails  have  not  shown  any  particular  activity,  and 
movements  have  been  small  without  any  significance.  Inter- 
national Marine  preference  were  prominently  weak,  and'  cm 
balance  are  .several  points  lower.  Denvers,  after  falling  back  a 
point,  recovered  the  lost  ground.  Canadian  racifics  have  been 
fairly  firm,  and  Canadian  Northern  debentures  advanced  three 
points.  Grand  Trunks  were  good  until  the  issue  of  a  very  poor 
traffic,  which  made  the  market  wobbly.  Argentine  Rails  have 
been  consistently  good,  and  towards  the  end  they  were  en- 
couraged by  a  series  of  exceptionally  fine  traffics,  which  are 
gradually  wiping  out  the  losses  cau.sed  by  the  strike.  At  the 
same  time,  it  l<joks  as  though  the  labour  difiiculties  had  not  yet 
been  by  any  means  surmounted.  San  I'aulos,  after  a  weak  open- 
ing, recovered,  and  closed  fractionally  better,  while  I-eopoldinas 
have  been  quietly  firmer.  Mexican  Kails  have  scarcely  been 
mentioned,  and  are  in  back-water  for  the  time  being. 

Bank  shares  have  not  attracted  much  attention  except  in  th*- 
case  of  a  few  of  the  Colonial  and  Foreign  list,  which  have  shown 
a  certain  amount  of  strength.  There  was  a  little  more  support 
latterly,  and  a  few  of  the  leading  London  shares  improved  to  a 
.small  extent.  Breweries  began  with  a  blaze  of  optimi.sm,  owing 
to  the  wonderful  dividend  announced  by  the  City  of  London, 
whose  shares  jumped  12J  nn  Monday  morning.  There  was  a 
slight  reaction  afterwards,  but  on  balance  they  are  still  10  points 
to  the  good.  It  may  be  significant  that  Iloares  have  been 
creeping  up  a  fraction  at  a  time,  but  Watney  deferred  after 
gaining  a  point  dropped  back  2J,  and  the  feeling  is  that  the 
advance  has  been  rather  overdone.  I^ittle  change  occurred  in 
the  rest  of  the  list.  Egyptian  securities  have  been  an  exception- 
ally strong  market  all  through  the  week,  and  all  the  active 
shares  have  been  forging  ahead  in  fine  style.  In  the  Iron  and 
Steel  group  Otis  fell  a  point  or  two,  but  most  of  the  others  were 
firm,  and  Explosives  especially  showed  to  advantage.  Among 
Land  shares  Nigers  at  first  fell  back  2s.,  but  came  along  with  a 
rush  later,  which  carried  the  price  up  a  full  ^  to  the  good. 
Hudson's  Bays  and  Forestals  were  both  rather  dull.  Nitrate 
shares  were  particularly  firm,  and  closed  practically  at  the  best. 
Shipping  shares  have  not  been  so  active  as  might  have  been 
anticipated  on  the  rather  sensational  advance  in  British  Mer- 
cantile on  the  proposed  absorption  by  the  P.  and  O.  Indo- 
China  gained  a  couple  of  points,  but  Cunard  were  weak,  and 
the  others  were  scarcely  mentioned.  Globe  Telegraphs  advanced 
smartly,  and  Marconis  were  little  affected  by  the  circular  an- 
nouncing that  a  settlement  has  not  yet  been  arrived  at  with  the 
Ckivernment.  Textiles  were  irregular,  and  among  Miscellaneous 
Industrials,  Dunlop  Rubber,  Borax  Consolidated,  and  Salt 
Unions  were  all  very  firm,  but  Lyons  gave  way  a  fraction  and 
the  rest  of  the  list  moved  irregularly. 

Oil  shares  have  been  feeble  and  neglected,  but  after  a  slight 
rally  they  relapsed  into  complete  stagnation.  Rubber  shares 
have  been  very  quiet,  with  sellers  more  in  evidence  than  buyers. 
The  price  of  the  commodity  shows  a  persistently  downward 
tendency,  and  the  people  who  bought  more  or  less  speculatively 
a  few  months  ago  are  either  trying  to  secure  what  remains  of  a 
profit,  or  are  inclined  to  cut  losses  before  they  become  more 
serious. 


LONDON    PRODUCE   MARKETS. 

There  was  no  new  feature  of  interest  to  note  in  the  various 
markets  during  the  week,  actual  transactions  being  confined  to 
narrow  compass.  Prices,  however,  underwent  but  little  alteration 
on  balance. 

Sugar  market  remained  unchanged. 

Coffee. — A  steady  state  of  affairs  governed  this  market,  and 
there  was  a  fair  demand  for  all  desirable  qualities.  The  future 
delivery  market  remained  in  the  same  inactive  ccmdition. 

Cocoa.— Market  quite  idle,  and  quotations  somewhat  nominal. 

Si'icE. — Only  a  small  trade  in  pepper  at  steady  rates.  Fair 
black  Singapore,  on  spot,  is.  2jd. ;  Tellicherry,  is.  4d.  ;  Muntok, 
IS.  7jd.  Zanzibar  cloves,  on  spot,  basis  fair,  is.  gd.  Tapioca 
firm.  Fair  flake,  spot,  ya. ;  fair  Penang  seed  pearl,  70s.;  medium, 
70s.  In  auction,  West  India  nutmegs  sold  firmly,  mace  being 
steady.     Fair  small  sago  changed  hands  at  65s. 

Rice. — Market  steady.     Beans  and  peas  unaltered. 

Hemp. — East  India  moved  off  quietly.  There  was  a  good 
inquiry  for  Palmyra  fibre  in  auction,  also  bristle  fibre.  Coir  yarn 
sales  were  well  attended,  and  the  bulk  of  offers  were  soon  dis- 
posed of  at  dearer  prices. 

Shellac  very  hrm  and  trade  curtailed.  Fair  T.N.  orange,  on 
spot,  371S.  ;  March,  3753.  ;  May,  372s.  6d. 

Rubber  quiet  and  prices,  while  irregular,  ruled  easier  on 
balance.  Plantation  spot  crepe,  sold.  2S.  4d.  to  2S.  3jd.  ;  April- 
June,  2S.  sd.  to  2s.  ^id.  and  2S.  45d.  Ribbed  smoked  sheet,  spot, 
sold,  2S.  3jd.  to  2s.  3d.  and  2s.  3jd.  Fine  hard  Para,  spot, 
2S.  7jd.  ;  soft  fine,  2s.  3d.  ;  ball,  is.  y^d. 

Corn  (Mark  Lane). — A  steady  tone  in  general  was  apparent 
during  the  week,  the  attendance  being  fair  and  business  moderate, 
while  prices  underwent  no  material  change.  Quotations — Wheat : 
Native  remains  at  74s.  6d.  for  both  whites  and  reds  delivered,  per 
504  lbs.  Of  imported  descriptions.  No.  i  Northern  Manitoba, 
.81S.  6d.  to  82s.  3d.  ;  No.  2,  ditto,  80s.  to  81s.  gd.  ;  No.  3,  ditto, 
78s.  to  783.  gd. ;  No.  2,  hard  winter,  80s.  to  80s.  gd.  ;  Australian, 
83s.  6d.  to  84s.  3d. ;  and  La  Plata,  8is.  6d.  to  82s.,  all  landed  per 
4g6  lbs.  Flour  :  English  town  and  country  (G.R.),  44s.  3d.  per 
sack,  ex  mill,  and  Canadian  export  51s.  gd.,  ex  warehouse,  per 
280  lbs.  Oats  :  English,  45s.  3d.  per  336  lbs.,  and  American  white 
clipped,    6is.    to    62s.,   landed,  per  320  lbs.      Barley :    Englis 


milling,  62s.  gd.,  and  Caiifornian  g3S.,  landed,  per  4it8  lbs.     Maize 
nominal,  while  largely  out  of  ofTer. 

Cotton  (from  our  Manchester  correspondent). — The  market  has 
again  presented  a  very  quiet  appearance.  It  is  a  long  time  since 
such  a  listless  state  of  affairs  existed.  Producers  have  plenty  of 
work  to  go  on  with,  and  there  has  been  no  pressure  to  sell,  whilst 
on  the  other  hand  buyers  have  adopted  a  waiting  policy.  Fluctua- 
tions have  occurred  in  raw  cott-n  rates,  but  on  balance  there  is  not 
much  change  in  prices.  Spinners  have  purchased  sparingly  in 
Liverpool.  The  inquiry  in  piece  goods  for  export  has  run 
on  small  lots  to  keep  up  assortments,  and  there  has  been 
no  disposition  to  purchase  for  forward  delivery.  Some  advices 
from  India  have  not  been  altogether  encouraging,  and  it 
seems    quite     impossible     for     dealers    in   the     bazaars  to   pay 

CURRENT    PRICES    OF    CHIEF    ARTICLBS. 
WEEK   ENDING    JANUARY  »5,  1918. 


tast 

Week. 


Iblt 
Week. 


Bagar— pec   owt 
duty     14/,     98  % 
polarisation 

Tatp's  Cubes 

Crushed..     .. 

Granulated  .. 

Lyle's  granulated 

Foreign;  granu 
lated,  first  inarkf 
f.o.b.,  spot 

GermaiiCubef.o.b. 

French  Cube 

prompi 

Crystallised,  West 
India 

Beet,    88%    f.o.b 

TUL— per  lb.,dut 

:/-  lb. 
Indian  Pekoe 
Broken    ,, 
Orange    ,, 
Broken     ,, 
P«koe    boucbong 
Ceylon  Pekoe 
Broken    ,, 
Orange    ,,  .. 

Broken    ,, 
Pekoe  Souobong 

Cocoa  —  per  cwt, 
duty  6J.  per  111 

Trinidad — per  owl 

Grenada 

West  Africa.. 

Ceylon  Plantation 

Gaayaquil  Ariba.. 

OofT46 — per  cwt 
duty  42/- pec  cwt. 

Bast  India    ..     .. 

Jamaica 

Costa  Rica   .,     .. 

Frovlsloni— 
Butter,  per  cwt. 

Australian  tinest 

Argentine     . .     . . 

txisli  Creameries 

Dutch  dino..     .. 

Russian  finest     .. 

Paris  baskets 

Danish  finest 

Brittany  coils  '- 
doz. lb.      .. 


Bftoon — per  cwt. 

Irish      

Continental..  , 
Canadian  .,  , 
Amedoan  ..  , 
Hamft — pec  owt, 

Iclsh       

Canadian  ,.  . 
American     .,     , 


-per  cwt. 


Obaase- 

Dutch 
Canadian 
English  Cheddar 
Wilts  loaf     ..     .. 
New  Zealand 

Rice — per  cwt. 

Japan , 

Rangoon  s  stars  . , 

Bgga — per  lao. 

English 

Irish       

Dauish 


Spelter— 

G.O.b.  as  to  posi 
tion 


Floor— pec  sack. 

Country  Stcaight 

Runs  ex  Mill . . 


£   ••  a 


a  13  9 

a  13  9 

a    6  9 

a    6  9 


nom. 
nom. 


269 

iiolu. 

.  d.  s  d 

nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
notn. 
nom. 
nom. 
notn. 

.  d.  >  d. 
87  o  -99  o 
:J5  o  -98  o 
68  0-77  o 
77  °  -94  b 

110/-112/ 


97  o  1 16  o 
77  o  - 1 20  o 
97  o  ii3  o 


252/ 
252/ 

nom. 

notn. 

nom. 

notn. 

nom. 

nom. 


172/ 
nom. 
171/-172; 
172/- 1  So/ 

203/ 
:6i;-i65/ 
25/-165/ 

129/6-160/- 
nom. 
142/ 

m>m. 

noil'.. 

s.    <t. 
Dcm. 
26    3 


44  0-45  o 

40  C-4X  o 

nom. 


44/3 


£  %.    d 


2  n 
2  13 

2    6 
a    6 


nom. 
nom. 


269 


nom. 
Dom, 
nom.  - 

nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 

d.  8.  d 

37   O-   99   (' 

S5  o-  98  c 
6S  o-  77  o 
77  o-  94  o 
110/-112/ 


97  o  115  o 
77  0-151  o 
97  0  iiU  0 


252/ 
252/ 

nom. 

nom. 

nom. 

nom 

nom 

nom. 


172/ 

nom. 

1711-172! 

i72/-Jtio/ 

203/ 
1621-1651 
125/-165/ 

r  29/6- 160/ 
nom. 
142/ 
noui. 
nom. 

•.    d. 
nom. 
26    3 


44  0-45  o 

4O  0~42   O 

aoD). 


44/3 


Wool— per  lb. 

A  u  B  t  r  a  I  i  a  n 
Scoured  Merinr 
Scoured  Cr'sabr'd 
Greasy  Merino 
Greasy  Crossbred 
New  Zealand! 
!  (scoured)  Merino 
Greasy  Cro-^sbrcd 
jCape  snow  white 

Indlarabborp.H 

Plantation,      Spo 
Crepe 

Coal— per  ion 

I  Durham,  best  .. 

jSeconds        ..,  . . 
:£ast  Hartlepool. 

{Seconds       ,.  .  . : 
Steams,  best 

(Seconds       . .  ■  • 


per  too. 
[English  Pie..     .. 
KoteiKn  9olt,  n«t 

QuloksUvor—per 

bottle  lirsthand 

Tin— per  ton 

English  Ingots      . 

Do.     b^rs 
Standard  cash     . . 
Tin  Plates, per  bo .^ 
Copper — pec  ton. 
English,     ToUffli 

per  ton      . .     . 
Best  Select'jd     . . 

Sheets - 

Standard      . .     . . 

Jate— per  too. 

Native    firsts    for 

shipment 

Oiu— 

Linseed,  per  ton.^ 

Rape,  refined  ...* 

,,        crude   

Cott'nSeea.crudt 
Ditto,  tehned  .. 
Petroleum  Oii.pci 

8  lbs. 
Water  White  .. 
Oil  Seeds, LinsSf'^ 
Calc'iita— pet  ton 
Spot 
Llape     


lr0D~pez  ton 
Cleveland  Cash  . . 
Tobacco  —  dut), 

uiimanufactur^r^ 

7/4108/0   perib 
Uarylaud  &  Oiiio. 

per  lb.  bond    .. 
Vitgiuiale<iU 
Kentucky  leaf    .. 

Latakia 

Havana 

.Manila  ..     ..     .. 

Cigars,   duty   jo/6 

per  lb. 

iTImbor— Wood. 

Pitch  I'ioe    . .     . . 
Indian  Teak 

Turpentine— 

Aiuericau  Spot  . . 

Gopra— per  ton 
Mfdabar        ..     .. 

Ceyon 

F.M.S.  Singapore 
F.M.    Straits 


Last 
Week. 


£   M.  d. 

Dom. 
nom. 
nom. 
nom. 

Bom 
nom. 
nam. 


nom. 

nom. 
nom. 
nom 

32  6 
29    6 

i      s    d 

nom. 

nom. 


£297-300 

t298-3or 

£mi 

ntJiQ. 


nom 

fu<t-£l23 
€■47 


£58-f63 

£7' 

£66 

£60 
£67-£95 

'l7\ 
l/IJi 


29  15 
iC29-lo£30 


nom 
0  8-2    1 

0  7 — 0  II 
2  o — 5    o 

1  6-6    I 
nom. 

2/  upds. 


30o(— 40!>,' 
38  J/ —700/ 


iVl 


46  o 
46  o 
45  >5 
45  "o 


This 
Week. 

£    I.  d. 

nom. 
nom. 
nom. 
Dom. 

nom. 
nom. 
nom. 


t  n 


nom. 
nom. 
nom. 
nom. 

32  6 

29  6 

£    «.  d. 

"nom.  ' 
:j94-£s8i 

nom. 


£301-303 

£302-304 

£299 

nora. 


nom. 
.:ii9-f!23 

£llo-iiot 


£58-£63 
£7t 

£6?-.E95 
t/8» 


29  15    o- 
fi9-io£30 


nom. 
08-1    I 
0  7  -o  II 
a  o  -5    o 
16-66 

nom. 

1/  upds. 


joo/— 4001 
iSo/—  700/ 


126/ 


46  o 
46  o 
45  --S 
45  '<> 


the  figures  required  by  Lancashire  raanufacturers.  Some 
demand  has  been  about  in  well-known  makes  for  CUna,  but  com- 
paratively liule  has  been  done.  Some  moderate  sales  have  been 
mentioned  for  Java.  The  turnover  lor  Egypt  continues  smaller, 
but  there  are  plenty  of  goods  on  order  for  that  outlet.  The  home 
trade  continues  busy,  and  tue  prospects  for  the  spring  and  summer 
are  believed  to  be  healthy.  American  yarns  for  home  use  have 
moved  off  slowly  at  about  late  rates.  In  certain  counts  and 
qualities  a  little  more  irregularity  in  prices  is  now  showing  itself, 
but  most  spinners  are  still  m  a  position  to  hold  out  for  fuli  quota- 
tions. Some  fair  lot*  have  changed  hands  in  export  yarns  for 
India  and  France,  without  there  being  any  general  buying  move- 
ment. Egyptian  spinnings  have  been  firm  in  quotation,  with  a 
limited  offtake  in  both  carded  and  combed  qualities. 


January  26,    1918. 


TLbc  investors'  IReview. 


95 


I  The  Week  in  Minos. 

Business  in  the  Mining  Markets  has  again  been  iairly  active 
fliis  week,  unci  the  tone  generally  has  been  firm.  Khodesian 
shares  have  bcexi  in  particular  demand,  partly  because  the 
market  generally  is  under  the  influence  of  the  recent  good 
developments  in  the  Gaika  and  Lonely  Reef  mines,  and  partly 
because  great  hopes  are  <ntertained  as  to  possible  devetopmunts 
in  land  and  cattle  raising.  Tin  shares  haive  shown  strength, 
but  Kussian  mines  have  been  very  weak,  naturally. 

I^m  .South  and  West  Africans. 

^B  In  the  .South  African  market  Mozambiques  hay«  risen 
^Bis.  3d.  to  13s.  cjd.,  Robinson  Deep  "A's "  }i  to  ij,  and 
^HvVit.  De<>ps  -  have-  recovered  to  ■  8s.  gd.,  but  City 
^BDeeps  have  weakened  to  3  9-32  on  provincial  selling. 
New  Modderfonte'ins  have  relapsed  ^  to  23I,  and  Modder 
Leasei  are  easier  at  3J.  Daggafonteins  ha.ve  been  active  at 
I  19-32.  Springs  Mines  have  been  in'  request  at  3J  on  news 
that  the  new  lea.ie  has  been  signed,  arid  that  the  guarantors 
have  abandoned  their  options  on  the  new  shares,  and  have 
taken  500,000  shares  firm  at  £3  aipiece.  South  African  share- 
holders are  to  have  the  right  to  apply  for  one  share  for  every 
ten  held  at  £3.  The  consent  of  the  Treasury  is  being  asked 
for  similar  rights  for  English  shareholders.  In  thie  Rhodesian 
section,  Kalcons  have  been  in  good  demand,  and  are  2S.  3d. 
higher  at  21s.  gd.  ;  Lonely  Reefs,  on  a  good  development 
report,  have  risen  3'>.  to  37s.  6d.  ;  Tanganyikas  i  to  3  17-32: 
Zambesias  is.  3d.  to  26s.  3d.  ;  British  Central  Africas  is.  3d. 
to  8.-;.  6d.  ;  and  Rezendes  ^  to  4J.  Profit-taking  has.  caused 
(!aikas  to  relapse  4  to  i^.  Chartereds  have  improved,  to  i6s. 
Diamond  descriptions  have  moved    irregularly.     West  Africans 

i^H  have   'been     more     active,    notably     Gold    Coast    Con.solidated 
^B  I.fthds  at  5s.,  and  Gold  Coast   Developments  at  6s.   gd. 
^B  Copper  ano  Miscellaneous. 

^^K  Copper  .shares  hnie  been  a  little  more  lively.  Despite  the 
^B'resumption  of  smelting,  Mount  Elliotts  have  relapsed  J  to  4, 
but  Arizonas  have  spurted  to  2  15-32.  Broken  Hill  shares  have 
been  in  demand  again  ;  Norths  are  2s.  higher  at  57s.  3d.,  and 
I^KZinc  Corporations  is.  higher  at  21s.,  but  Proprietarys  have 
^^Hlelapsed  is.  gd.  to  55s.  gd.  Tin  has  risen  £$  to  ;^2gg|  per 
^^V'ton,  and  the  shares  of  the  companies  producing  this  com- 
^^Himodity  have  advanced  in  sympathy.  South  Croftys  have  risen 
1^™  2s.  to  26s.  gd.,  Siamese  ^  to  3-1V,  Anglos  is.  to  15s.  3d.,  and 
Kast  Pools  gd.  to  22s.  gd.  Mexican  shares  have  teen  in- 
quired for,  especially  Esperanzas,  which  are  up  to  gs.  3d. 
Indians  have  'been  easier,  including  Burmas,  which  have 
fallen   3-32  to  4   5-32. 


Russians  have  been  flat  on  the  news  of  the  expropriation 
of  the  Kyshtim  and  other  properties.  Irtysh  Corporations 
have  fallen  11-32  to  i^,  Kyshtims  -,%■  to  i^,  Lenas  J  to  ij, 
Kusso-Asiatics.f  to  2J,  and  Tanalyks  -\  to  ij-i.  -  Holders  would 
be  ill-advised  to  throw  away  their  shares  at  present,  for 
obviously   the  position   cannot  be  regarded  as  final. 


MINING    NEWS. 

Mount  Lyell. — The  full  report  for  the  year  ended  Sep-, 
tember  30  shows  that  the  ore  mined  decreased  from  334,890  to, 
260,379  tons,  owing  to  the  miners'  strike  in  May,  which  resulted, 
in  the  introduction  of  a  44-hour  week.  This  \yill  permanently" 
affect  future  production  and  costs.  Reserves  of  ore  are  esti-- 
mated  at  3,011,343  tons,  against  3,260,257  tons.  There  were' 
treated  altogether  239,940  tons,  which  produced  5,832  tons  of; 
blister  copper  as  against  6,576  tons  in  1915-16,  the  contents 
being:  Capper,  5,766  tons,  against  6,505  tons;  silver,  2g5,i26- 
ozs.,  against  371,170  oz.s.  ;  gold,  7,455  ozs.,  against  8,865  ozs. . 
Cost  of  production  again  shows  a  considerable  increase,  the 
total  being  26s.  6d.  per  ton  of  ore  against  23s.  6d.  and  199.  per 
ton  in  previous  two  half-years.  Profit  on  working  was  .if549>S87> 
and  the  nett  profit,  after  providing  ;i'49,722  for  depreciation,  and 
;^i8o,634  for  taxes,  was  ;^268,6ii  against  ^239,003.  The  divi- 
dend is  again  2S.  6d.  per  share,  but  no  bonus  is  paid  this  tim.e, 
whereas  last  year  gd.  per  share  was  paid,  and  ;^236,6g7  iai 
carried  forward,  against  ;£i29,236.  Liquid  assets  exceed.  lia-, 
bilities  by  ^£542,996.  '    '  , 

Broken  Hill  Block  14. — Operati(?ns  duning  the  half-year 
ended  September  30  were  interrupted  by  the  strike.  .  Work  w.aS. 
confined  to-  the  carbonate  zone,  and  the  iqiiantity  raised  and 
sold  to  the  associated  smelters  was  2,933  tons.  The  Scheelite 
Mine,  in  which  the  company  holds  a  42  per.  cent,  participa- 
tion, began  work  in  July,  and  to  September  30  produced-  2.„i 08- 
tons  of  an  average  value  of.  63s.  lod.  .per  ton:.  The  nett  profit 
for  the  half-year  was  ;^i,34o.  Sixpence,  per  share  was  paid 
on  all  shares  in  September,  together  with  the  half-yearly  pay- 
ment on  the  preference  shares,  ajbsorbing  ;£6,5oo,  and  leaving, 
;^42,828  to  be  Carried  forward.  '         "     - 

Broken  Hill  Block  10. — The  report  for  the  September  half- 
year  states  that  operations  were  stopped  on  August  18  by  the  , 
general  strike.  Th^re  were  produced-  4,^22  tons  of  concentrates, 
containing  148,807  ozs.  of  silver,  2,6g8  tons  of.- lead,  and  344] 
tons  of  zini;.  'Th«(  nett  profit  was  ^28,613,'  against  ;^2i,i36,  and 
two  dividends  of  is.  each  were  paid,  absorbing  ;^io,ooOi  The 
balance  carried  forward  is  /'83,igo.  Liquid  assets  exceed  lia- 
bilities by  /g3,42g,  against  ;^75'232- 


Total  Issues 
out  of  the  Ex- 
chequer to  meet 
payments  from 
April  I,  1917,  to 
Jan,  19.  roiS. 


1 

I 


PUBLIC     INCOME     AND    EXPENDITURE. 

The   following   are   the   receipts   into   and   issues   out     of    the 
Exchequer  between  April  1,  1917,  and  January  19.  1918: — 


Expenditure 
and  other  issues. 


Balances    in    Exchequer    on 

April  I— Bank  of  Engkind  . . 

Bank  of  Ireland    .. 

Revenue. 

Customs , , , ,',  .....,■.. 

Excise  , 

Estate,  &c.,  Duties ■...-.. 

Stamps 

Land  Tax ) 

House  Duty  ; *  f 

Property  and  Income  Tax  and 

Super  Tax    

Excess  Protjts  Duties,  &c 

j_.and  Value  Duties 

Post  Office 

Crown  Lands 

Receipts    from    Sundry 

Loans,  &c 

Miscellaneous 


Estimate 

for  the 

Year 

1917-1,918, 

(See  note.) 


1  Total  Receipts 

into  the 
Ex  chequer  from 
April  I,  1917,  to 

i     Jan.  19,  1918 


Kevenue   

Total,  including  Balance  . 


.  70,75^.000 

34,950,000 

2g,  000, 000 

8,000,000 

.   2,600,000 


224,000,000 
200,000,000 

400,000 
33,700,000 

600,  coo 

7,500, ood 
27. 1  no.  000 


638,600,000 


It 


Other  Receipts. 

Repayment  of  Advances  for  Bullion   

Repayment  of  Advances  for  Interest  on 
Exchequer  Bonds  under  the  Capital  Expen- 
diture (Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Oflice  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Builoings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For  Treasury  Bills  (tor  supply)   

For  Exchequer  Bonds  under  the  Capital 
Expenditure  (Money)  Act,  1904  

For  Exchequer  Bonds  under  the  Cunard 
Agreement  (Money)  Act,  1904  

For  4i  per  Cent.  War  Loan,  1925-1945 

For  5  per  Cent.  Eichequer  Bonds,  1919-,,.. 

For  5  per  Cent.  Exchequer  Bonds,  1920    

For  5  per  Cent.  Eschequer  Bonds,  1921  .... 

For  5  per  Cent.  Exchequer  Bonds,  1922   ..-.,. 

For  6  per  Cent.  Exchequer  IJonds,  1920    .... 

For  War  Expenditure  Certificates  

For  War   Savings  Certiticates 

Fot  other  D«bt  created  under  the  War  Loan 
Acts,  1914-1917 

For  4  per  Gent.  War  Loan,  1929-1942,  and  5  per 
Cent.  War  Loan,  1929-1947    . 

For  National  War  Bonds    

East  Africa  Protectorate  Loan  :  Repayipents 
oh  account  of  Principal  and  Interest 

ICunarJ  Loan :  Repayment  on  a/c.  of  Prineipal 
China  Indemnity  ,.% 
Temporary  Advances— Ways  &  Means  (indud 
ing  Treasury  Bills  £"345,000,000  in  1916.-1917) 
Total 
; 


£ 

.  ^^5.209,947. 
1.225,912 


'26,4.^5.859 


■56,894,00c' 
30,733,000 
25,(373,000 
6,151,000 

920,000 . 


101,010,000 

163, t  2  2, 000 

479,(500 

27j2cto,oob 

460,000 

1.925,975 
47.005.576 


460,973.551 


487,409,410 


1, 970,  coo 


169,818 

100,000 

68,000 


394.500 

2,232,032,000 


1,300,000 


82,248,400 
48,000 

37,100,000 

5?5.657.253 

'66,913,580 
*262,393,ooo 

5,940 
130,000 


4,6f)3. 043.4"! 


Total  Receipts 

into  the 

Exchequer  from 

April  I,  1916,  to 

Jan.  20,  1917. 


£ 
■  25,111,065. 
461.941 


25.575.006 


55,526,000 

45^20,000 

•23,907,000 

5,956,000 

-     920,000 

81,391,000 

■  98,513,000 

251,000 

26,700,000 

470,000 

5.154.238 
12.050.90^ 


Estimate  for 
th6  Year 

1917-18. 
(See  note.) 


Total  Issues 
put  of  the   Ex- 
chequer to  meet 
payments   from 
April  I,  1916,  to 

Jan.  20,  1917- 


17,000,000 
194,500,000 


9,700,000 
1,695,000 

2,543.830.oro 


2,766.725  000 


n    Exchequer 
Expenditure 


356,059,141 


381,634,147 


3,030,000 


36,918 

210,000 

160,000 

8,824 

8,000 

74,600 

1,758,853,000 

3,087,600 


424 
34,222,000 
84,140,469 
62,468,806 

160,831,000 

29,878,500 

■  43.550,000 

199.875.038 


.  5.940 
130,000 
400',  doo:; 

720, 5*;^  .pop 


Expenditure. 

Permanent  Charge  of  Debt  .. 
Interest,  &c.,  on  War  Debt.. 
Payments  to  Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    

Expenditure    

Other  Issues. 

For  Advances  for  Bullion 

For   Advances    for    Interest    < 

Bonds    under    the     Capital 

(Money)  Act,  19.^4    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903 

Under  Housing  Act,  1914, 

For  Treasury  Bills  for  Supply 

For    Exchequer    Bonds    under    the    Ca  ital 

Expenditure  (Money)  Act,- 1904    

For  Exchequer  Bonds  under  the  Cunard  Agree- 
ment (Money)  Act,  1904 

For  War  Loans,  Exchequer  Bonds,  &c., under 

Section  34  of  Finance  Act,  1917  

For  other  Debt  under  the  War  Loan  Acts, 

1914  to  1917 

For  Depreciation   Fund  under  the    Fmance 

Act,  1917 

Old     Sinking    Fund,     1907-8,    issued    under 

Section  9  of  the  Finance  Act,  1908 
Old    Sinking    Fund,     1910-11,    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  (b)  .. 
Old  Sinking  Funds,  1911-12  and  1913-14,  issued 

under    the    Anglo-  Persian    Oil    Company 

(Acquisition  of  Capital)  Act,  1914  

East   Africa  Protectorate  Loan  Repayments— 

Issued  to  reduce  Debt  under  the   Finance 

Act,  1911 

Cunard  Loan  Repayts.— Issued  to  reduce  Debt 

under  the  Cunard  Agreemt.  (Money)  Act,  1904 
China     Indemnity— Issued    to    reduce     Debt 

under  the  Finance  Act,  1906    ... 

Temporary  Advances  repaid— Ways  and  Means 

(incWg.  Treasury  Bills  £337,380,000  in  1916-17) 


£ 

17,006,991 

147.750.453 

■  6,643,186 

1.497,931 
1,994,682.857 


2,167,581,418 


Balances  in  Exchequer- 
Bank  of  England. 

Bank  of  Ireland 

Total 


1918. 
Jan.  ig. 

i5.i**9,054 
1,452,684 


1917. 
Jan.  20. 

£ 
22,613,316 
1,435,060 


169,818 

I00,0O0j 

95,000 


394,500 

1,610,834,000 


1,300,000 

8,922,706 

38,410,081 

27,490,200 

20,C00 


949,000 


130,000 


817,849.000" 


£ 
18,003,300 
99,872,905 

6,687,392 

1,689,522 
1,552,049.05' 


1,678,302,170 


3,150,000 


91,370 
210,000 

200,000 

8,008 

8,000 

98,900 

l,307,6i3,ox( 
3,087,600 


417.785 
9,651,957,, 


69,000 
53,160 


400,000 
455,173,000 


4,'675,4CI,663 


16,641.758 


3,459,"9,890 


24.048.376 

4,693,043,^01     '     3.483,168.266 


3.4»^.i6H.266 


Note. — E'-limale  as  in  House  of  Commons 
plementary  Grants. 
^Excluding  sales  through  joint  stock  and  private 


Paper  No.  75  of  1917,  and  Sup- 
banks  not  yet  brought  to  account, 


Memo.— Treasury  IJills  outstanding  on  Jan.  19,1918 ■ •£1,085,081,000. 

'»  fnclulies  £205,000,  the  proceeds  of  which  werp  lot  carried  to  the  Exchequer 
within  the  period  of  the  account,  Resides  an,  amount  (not  yet  ascertained  and 
brought  to  account)  far  Bills  tendered  as  subscription  to  National  War  Bonds. 

.Mr.  Patrick  James  Prlngle,  2,  Rothesay  Place,  Edinburgh, 
has,  been,  appointad  a  dijector.  of  the  Scottish  Union  and 
Nati^npl  Insuranc?- Cp.,,  jn,.  place  of  the  late  ,  Mr.,  Thomas 
Hector  SniithV      '   -      -      - .       , 


96 


tTbe  Jnvcstors'  TReview. 


Januakv  26,   1918. 


DIVIDENDS     ANNOUNCED, 

Anglo-American  Telegraph. — To  the  close  of  1917  a  balance 
of  £1  los.  per  cent,  upon  the  ordinary  consolidated  stock ;  of 
J,  I  I  OS.  per  cent,  upon  preferred  stock;  a  first  and  final 
dividend  of  £i  los.  per  cent,  upon  the  deferred  stock. 

Bandjarsarie  (Java)  Rubber. — Interim  at  the  rate  of  5  [>er 
cent.   (is.  per  share),  less  tax. 

Bengal  and  North-Western  Railway  Co. — Final  for  year 
ended  Sept.  30  of  3  per  cent.,  together  with  a  bonus  of  i  per 
cent,  on  ordinary  stock,  making  a  total  payment  of  8  per  cent. 
per  annum,  against  7J  per  cent. 

Banco  Kspanol  del  Rio  de  la  Plata. — Interim  at  rate  of  5 
per  cent,  per  annum  for  half-year  ended  Dec.  31. 

Bank  of  Montreal. — 2 J  per  cent,  for  quarter  ending  Jan.  31, 
the  same  as  a  year  ago. 

Bristol  Brewery  Georges  and  Co. — At  the  rate  of  22  per  cent, 
per  annum  for  six  months  to  December  31,  making  15  per  cent, 
for  iyi7,  against  11  per  cent.  Forward  ;^69,7oo,  against 
jf54,i2o  a  year  ago. 

British  Commercial  Bank. — Inteirim  for  quarter  to  Dec.  31 
at  the  rate  of  7  per  cent,  per  annum  on  the  preference  shares. 

Baltimore  and  Ohio  Railroad. — 2J  per  cent,  on  the  comrnon 
stocjc  from  the  surplus  earnings. 

Bank  of  Victoria. — On  the  ordinary  shares  at  the  rate  of 
■6  per  cent,  per  annum  : — To  officers'  guarantee  provident 
fund,  ;<^2,ooo;  to  reserve,  ;^25,ooo;  forward,  jJio,8o8.  A  year 
ago  the  dividend  was  the  saune. 

Batu  Tigsn  (Sfclatigor)  Rubber. -^Sedond  interim  23.  peri 
share,  less  tax. 

Commercial  Bank  of  Australia. — At  the  rate  of  4  per  cent, 
per    annum   on   preference  shares,   the   same. 

City  of  London  Brewery. — Final  of  5  per  cent,  on  ordinary 
stock  and  5  per  cent,  on  amounts  paid  up  on  the  ordinary 
shares,  making  in  all  10  per  cent,  for  year,  less  tax,  and  a 
■bonus  of  20  per  cent.,  free  of  tax,  on  both  the  ordinary  stock 
and  on  the  amounts  paid  up  on  the  ordinary  shares.  For  191O 
the  dividend  was  5  per  cent. 

Civic  Investment  and  Industrial  Co. — r  per  cent,  on  the  paid- 
up  capital  sto:k  (being  at  the  rate  of  4  per  cent",  per  annum) 
for  quarter  ending  January  31. 

Charcoal  Iron  Co.  of  America. — 2  per  cent,  for  Dec.  quarter 
on  common   stock. 

Canadian  Bank  of  Commerce. — 2}^  per  cent,  on  the  capital 
stock  for  the  three  months  ending  Feb.  28,  payable  March  i,  the 
same  as  a  year  ago. 

Gas  Light  and  Coke  Co. — For  the  half-year  to  Dec.  31  at  the 
rate  of  £3  14s.  8d.  per  cent,  per  annum,  carrying  forward 
/25i,044. 

Gaika  Gold  Mining  Co. — Interim  of  3  per  cent.,  less  tax,  for 
year  ending  June  30,  payable  on  Feb.  14.  A  year  agO'  the 
dividend  was  1;  per  cent. 

Glynn's  Lydenburg. — 8%  per  cent,  for  the  period  ending 
Jan.  31,  payable  less  tax.  A  year  ago  the  dividend  was  10  per 
cent. 

Imperial  Tobacco  C9.  (of  Great  Britain  and  Ireland). — Final 
-5  per  cent.,  making  10  per  cent,  for  the  year,   and  a  bonus  of, 
2S.'  6d.    per   share,   both   free  of   tax,   on   the  ordinary    shares, 
placing  to  general  reserve  j^l,ooo,ooo;  forward,  ;f 271,000.     The 
-dividend  is  the  same  as  a  year  ago. 

Jones  Sewing  Mach'ne  Co. — Interim  of  3  per  cent,  (actual),, 
free  of  tax,  on  the  ordinary,  the  same  as  last  year. 

Kuala  Klang  Rubber  Estate.— Final  20  per  cent,  (actual,  less 
5s.  tax),  making  40  per  cent,  for  the  year  ;  forward,  ;f7,547- 

Kawie  (Java)  Rubber  Estates. — Interim  5  per  cent,  actual, 
less  tax. 

Kuala  Selangor  Rubber. — Third  interim,  8d.  per  ■ihare. 

Liebig's  Extract  of  Meat  Co. — Interim  of  10  per  cent.,  fiee 
of  tax,  same  as  a  year  ago. 

Metropolitan  Railway  Co. — At  the  rate  of  i  per  cent,  per 
annum  for  past  half-year,  the  s.ame  as  a  year  ago ;  at  the  rate 
of  2^1  per  cent,  on  the  surplus  lands  stock,  also  same  as  a  year 

^e"-  '  .... 

Mutual  Tontine  Westminster  Chambers  Association. — jj'i  pei 

cent,  for  half-year  to  Dec.  31,  making  7  per  cent,  for  year,  less 

tax.      The    serial   number   of   the   coupon   to.  be   presented   on 

Feb.  28  is  No.  09-    ,  . 

Montreal  Light,  Heat  and  Power  Co. — 2  per  cent,  on  the  paid-, 
up  capital  stock.- 

Northern  Corporation. — Final  at  the  rate  of  17  per  cent,  per' 
annum  (making  1254  per  cent,  for  the  year)  on  the  ordinary 
shares  for  half-year  ended  Dec.  31  last.  < 

Parkcs'  Drug  Stores,  Ltd. — Final  of  4"^^  per  cent.,  free  of  tax, 
on  ordinary  shares,   for   half-year  to   Sept.   30,   with   ;f50o   to, 
general  reserve  fund.     A  year  ago  4   per  cent.,  less  tax,  was 
paid. 

Pawsons  and  Leafs. — 6s.  per  share,  making  7%  per  cent,  for 
year,  together  with  a  bonus  of  2S.  per  share;  forward  ;^44,i48, 
ag.ainst  /r-)7,04i.  A  year  ago  the  dividend  was  the  same,  but 
no  bonus  was  paid. 

Richard  Seed  and  Co. — Ordinary  share  dividend  for  past  year 
of  10  oer  cent.,  less  tax,  carrying  forward  ;f 20,743,  against 
£20. -{S-^  last  year,  when  dividend  was  5  per  cent. 

Scottish  American  Investment. — Final  for  1917  on  ordinary 
shares,  as.  i4-?d.  per  share,  less  tax,  the  same  as  last  year. 

Threlfa'l's  Brewery  Co. — Interim  of  10  per  cent,  (actual) 
•copipared  with  5  per  cent,  (actual)  a  year  ago. 


Tea,  Oil   and   Rubber. 

In  dealing,  a  month  ago,  with  the  agitation  for  an 
enforced  restriction  of  rubber  outputs,  we  remarked  : 
"  No  doubt  people  who  never  know  when  to  stop 
preaching  higher  prices  would  like  to  see  some  spec- 
tacular scheme  to  help  them  out  of  their  present  diffi- 
culty, but  if  the  Rubber  Growers'  Association  is 
foolish  enough  to  fall  a  victim  to  the  snare,  we  should 
have  to  warn  investors  to  sell,  sell,  sell  everything." 
The  scheme  to  cut  down  production  by  20  per  cent, 
except  by  grace  of  the  Association,  which  might  be 
given  or  withheld  quite  arbitrarily,  was  adopted,  and 
the  result  is  that  the  price  of  the  commodity  has 
fallen  steadily  ever  since,  while  many  previously  active 
shares  have  become  almost  unsaleable,  and  quota- 
tions have  sagged  heavily.  Of  course,  it  may  be 
argued  that  the  price  of  rubber  could  not  be  favour- 
ably affected  until  the  restriction  of  output  becomes 
really  operative  several  months  hence,  but  it  is  per- 
fectly certain  that  the  advocates  of  the  scheme  never 
contemplated  anything  like  that  which  has  actually 
taken  place.  Yet  the  explanation  of  the  movement 
apjjears  to  be  simple  enough.  Both  users  of  rubber 
and  buyers  of  shares  were  greatly  influenced  by  the 
semi-official  estimates  of  an  impending  shortage  of 
supplies  as  compared  with  the  ever-increasing  demand, 
and  when  the  organisation  which  officially  represents 
the  industry  suddenly  lopped  over  and  declared  that 
output  mu^t  be  reduced  by  one-fifth,  the  result  could 
be  foreseen  without  the  aid  of  Sam  Weller's  double- 
million  magnifying  glasses  "of  extry  power."  Con- 
fidence was  shaken,  and  once  that  is, gone,  it  usually 
requires  a  great  deal  to  re-establish  it.  The  plea 
that .  the  policy  adopted  is  larg^ely  designed  from 
patriotic  motives  to  save  shipping  is  sheer  flapdoodle,' 
just  as  much  as  it  would  be  to  urge  that  young  pro- 
ducers subject  to  the  full  effect  of  the  excess  profits^ 
duty  should  over-tap  their  trees  in  order  to  hand  oven 
80  per  cent,  of  the  product  to  the  Treasury  J  -We 
have  said  again  and  again  that,  'especially  in  the  case^ 
of  young  estates,  a  policy  of  "  resting"  is  not  only 
justifiable,  but  imperative  in-  the  interests  of  good 
management,  but  th<tt  is  a  very  different  matter  from 
a  flat-rate  reduction  of  20  per  cent,  without  regartJ* 
to  anything  except  the  supposed  interests  of 
Speculators.  Up  to  now  they  have  lost  instead  of 
gained  by  their  cleverness,  but;  mischief  has  been  done 
which  it' may  take  a  long  time  to  repair. 

There  is  no'  sign  of  reaction  in  the  prosperity  which 
the  Dtinlop  Rubber  Co.,  Ltd.,  has  enjoyed  for  a  good, 
many  years  past,  and  the  report  to  August  31  is  the. 
best  yet'  issued.  Trading  profits  were  ;£,"36,ooo  higher 
at  ;^567,ooo,  but  royalties  produced  ;^32,ooo  less,  and' 
after  minor  adjustments  the  nett  profit  is  ^3,000  to 
the  good  at  ;£,'435,ctoo,  while  ;^7, 000  more  w^s  brought 
in.  Preference  dividends  require  ;^52,ooo  more  under 
(he  scheme  arranged  with  the  Parent  Tyre  Co.,  and 
the  ordinary  shares  again  receive  two  "  interim  "  diviT, 
dends  amount'mg'  to  15  per  cent.  Onlv  ;^75,coo,  how-. 
ev;er,  .or  ;^io9P9p  less,  is  written  off  buildings,  plant, 
&c.,  but  /i^qovooo  is  vixitterv  off  expenses  of  new  capital 
issues,  against  ;^52,ooo  6(T  debtors  last  year,  and  the 
balance  to,  be  carried  forward  is  /r20,ooo  up  at 
;^,i03,50o.  Nor  does  this  discIo.se  the  whole  of  the 
stprv.  ,  It  is  stated  that  the  rubber  estates  up  to  Aprif 
last  made  a  profit  of  ;^i65;8oo,  but  this  has  not  been- 
brougTit  into  ftie  accounts, 'Snd  no  credit  has  been  taken" 
for  the  profits  earned  by  the  D.R.  Cotton  Mills,  as  thty. 
have  not  yet  been  ascertained,  while  certain  royaltie.s; 
due  to  tlie  c6mpany  from  Russia  have  also  been  ex-> 
eluded.  When  a  company  can  afford  to  ignore  items 
of  that  kind  and  still  pay  handsome  dividends  it  must 
indeed  Ije  doiftg  <\etl.  , 

BOOKS^RECEivED..  ;j 

jyiathiesons*  Highest  and  Lowest  Prices.  January,  V)i8, 
issue.  -Price  as.  6d.i  Publishers,  Fredc.  C.  Mathieson  and  Son*. 
i6',  Copthall  Avenue,-  E.C.  2.  '       ■  ' 


I   It  is  estimated  that  the  Government  of  Holland  will  have  ta 
pay    _^2o  ooo,opo  during  ^he   cup-erit   year    for  food,  over   and 
above  what   the  people  themselves'"  ar^ 'able  to  bijy,   jn_  order 
j,lo  keep  hunger  from  the  door.  .  —  .  . 


-  The  total  quantitj'  of  wheat  in  store  in  Canada  is  said  to  be 
joo, 000,000  bushels,  of  which  30,000,000  are  required  for  seed 
and  30,000,000  forlhome  consumption,  leaving  40,000.000  bushels 
Jttriiwmediftte  ^pbrt  if  we  could -only 'gfet- life  shipping. 


January  26,    1918. 


Zbc  Jnvestore'  1Rev(ew. 


97 


What    Balance   Sheets   Tell. 


NATIONAL   BANK  OP  AUSTRALASIA,   LTD. 

In  the  half-3'ear  to  September  30  the  gross  profits  were 
;^207,i6o  and  the  nett  .profit  is  ;^6,ooo  up  at  £8^,41)0.  After 
placing  ^^25,000,  or  ;^5,ooo  more,  to  reserve,  the  dividend  ot 
7  per  cent,  per  annum  is  repeated,  and  the  balance  forward  is 
increased  by  ;/^2,o5o  to  ;^i5,74S.  Bills  in  circulation  have  ex- 
panded ;^i6o,ooo  tO;^744,ooo,  and  deposits  are  ;^i, 660,000  higher 
at  ;^i2,445,ooo.  Cash  and  money  at  short  call  have  risen 
^^914,000  to  ;^3, 277,000,  and  investments  are  ^'1,400,000  up  at 
;^i, 798,000,  but  discounts  and  advances  are  ;^4oo,ooo  lower  at 
;^9,o52,ooo.  Liquid  assets  total  ;^6,3oo,ooo,  or  46^  per  cent,  of 
the  liabilities  to  the  public,  indicating  a  very  strong  and  satis- 
factory position. 


ROYAL  BANK  OP  AUSTRALIA. 

For  the  half-year  to  September  30  the  gross  profits  wer» 
^43,480;-  ah  increase  of  ;^4t5oo,  and  including  ;^'8,i5o  brought 
in  the  nett  profit  is  .^30,460,  an  increase  of  ;^3,ooo.  After 
placing  ;<^to;ooo,  or  ;^2,5oo  more,  to  reserve,  the  dividend  of 
8  per  cent,  per  annum  is  repeated,  and  ^8,460  is  carried  for- 
ward. Bills  in  circulation  have  increased  ;^2oo,ooo  to  ^^326, 000, 
Government  deposits  are  down  ;f33,ooo  at  ;£s34,oc)o.  But  other 
deposits  are  ;f30o,ooo  up  at  ;£2, 245,000.  Cash  and  investments 
have  advanced  ;^75o,ooo  to  ^^1,692,000,  but  loans  and  discounts 
are  ;f 290,000  lower  at  ;^i, 942,000,  so  that  altogether  general 
business  does  not  appear  to  have  been  particularly  brisk. 
BANK  OP   TORONTO. 

In  the  year  to  November  30  nett  profits  amounted  to  $803,000, 
an  increase  of  $70,000,  and  with  a  larger  sum  brought  in  the  avail- 
able balance  is  f  r4o,ooo  higher  at  $1,311,000.     Four  dividends  of 


THE  CAPITAL  AND  COUNTIES  BANK, 


LIMITED. 


Head    Office 


{ESTABLISHED    1834.) 

39,     THREADNEEDLE     STREET,     E.G.  2. 


SUBSCRIBED    CAPITAL 
PAID-UP    CAPITAL    .... 
RESERVE     FUND 


£8,750,000 

1 ,750,000 

800,000 


Directors. 

WILLIAM  GARFIT,  Esq. 
Captain  Sir.  CHARLES  BATHURST,  K.B.E.,  M.P. 
Major  ELIOT  G.  BROMLEY-MARTIN. 
LEONARD  D.  CUNLIFFE,   Esq. 
Sir  LIONEL  E.  DARELL,  Bart. 
Sir  RICHARD  C.  GARTON.  G.B.E. 
Sir  JOHN  T.  GOLDNEY. 
GEORGE  A.  HARVEY.   Esq. 


Chairman . 

ARTHUR  HENTY,   Esq. 
HERBERT  J.  W.  JERVIS,  Esq. 
Sir  henry  KIMBER,  Bart. 
GEORGE  BUTLER  LLOYD,   Esq. 
SAMUEL  SAMUEL.   Esq.,  M.P. 
Sir  GRIFFITH  THOMAS. 
ERNEST  D.  VAISEY, -fisq. 


M.P. 


BALANCE    SHEET,    3l8t    December.    1917. 


/484,067  14     0 


LIABILITIES. 

Capital,  viz. : — 

•  175,000  Shares  of  £50  each.  /IQ  paid 

IJeserve  Fund 

Anjpunt  due  on  Current.  Deposit  and  other 
Accpunts,  including  provision  for  bad  and 
doubtful  debts  

Acceptances  and  Endorsements  on  behalf  of 
Customers        ...         „. 

Net  Profits 

Interim  Dividend, 
subject  to  de- 
duction of  In- 
come Tax    ...;fl22.500 

Final  Dividend, 
subject  to  de- 
duction of  In- 
come Tax    ... 

Reduction  of  the 
cost  of  Pre- 
mises 

Officers'  Super- 
annuation 
Fund 


■     / 

1,750,000 
800,000 


s.   d. 


58,646,453   19     7 
1,367.249  18     1 


0     0 


122,500    0    0 


25.000    0    a 


ASSETS. 

£        s. 
Cash       at       Head        Office. 
Branches   and    B^nk    of 
England   ...     ...     ...     ...  12,174,496  1?', 

Money    at    Call   and    Short  ,  .  ,. 

Notice       , ; 10.624.51;8  It 


•#v'^ 


10,000     0     0 


280,000   0   0 


204.067   14     0 


;f62,767.771  U     8 


NOTE.— This  statement  of  Liabilities  dcs  not  include  the 
Bank's  Guarantee  of  £89,286  to  the  Yorkshire  Penny  Bank, 
Limited. 


Investments  : —       -   . 

War  Loartsand  other  Securi- 
ties of,  or  Guaranteed  by. 
the  "Brftish  Government 
(of  which  /134,800  is 
lodged  for  "Public  Ac- 
cduhts)     14,099,787     4  10 

India  Government  Stocks, 
Qritish  Railway  Deben- 
ture ,  and  .  Preference 
Stocks,,and  Coloijial  Gov- 
ernment Stocks  and 
Bonds       830.904     8     0 

English    Corporation   Stocks 

and  other  Investments  ...       419,931  17     8 


22,799.015     3     1 


Bills  discounted,  loans,  and  other  accounts, 
including  pre-moratorium  Stock  Exchange 
loans     ...    ^     ... 

Liability  of  Customers  for  Acceptances  and 
Endorsements,  as  per  contra       ...     ; 

Banking  premises  in  London  and  country  at 
cost,  less  amounts  written  off  for  depre- 
ciation     .„     .-.. 


15.350.623  10 
38,149,638  13 

22,195,347  12 
1,367.249  18 


1.055.535     7     7 
if62,767,771  11     8 


NOTE.— Th«  Bank's  Investments  in  War  Stacks  are  taken 
at  cost  prices  atid  other  Investments  at  or  under  prices 
ruling  on  31st  December,  1917. 


G.  A.  HARVEY. 
E.  D.  VAISEY. 


{Joint 
i     Mar. 


General 
Managers . 


ED. 


SMITH, 
Chief  Accountant. 


W.  GARFIT,  ) 

HENRY  KIMBER.        ^Directors. 
G.  BUTLER  LLOYD.) 
„,    .  ,     .     J     „  AUDITORS*  REPORT  TO  THE  SHAREHOLDERS. 

Wehaveobtamed  all  the  information  and  explanations  we  have  required,  and  having  satisfied  ourselves  of  the  correctness  of  • 
the  Cash  Balances^  and  examined  the  Securities  held  against  the  Money  at  Call  and  Short  Notice,  and  those  representing  the, 
investments  of  the  Bank,  and  having  examined  the  foregoing  Balance  Sheet  and  Profit  and  Loss  Account,  and  compared  them  with--, 
the  Books  at  the  Head  Office,  and  with  the  certified  Returns  .from  the  J3ranches,  we  are  of  opinion  that  the  Balance  Sheet  is  ; 
properly  drawn  up  so  as  to  exhibit  a  true  and  correct  view  of  the  state  of  the. Bank's  affairs,  according  to  the  best  of  our  informatioa  ■ 
and  the  explanations  given  to  us,  and  as  shown  by  the  Books  o(  the  Bank.  ■  .         ■  '     '  r" 

14th  January,  1918.  -  TURQUAND,  YOUNGS  &  CO.. /lM<i»*ors.  •*  ' 


98 


Zbc  3nve6tor6'  IReview. 


January  26,    1918. 


2J  per  cent,  each,  making  ir.  pp?  pent,  in  all,  have  again  been 
paid,  and  Jioo,<ioo  (npw)  i^  .written  QiH  bank  prenii.ses,  but 
$7,000  less  has  been  aUoUed.  to  war  subscriptions,  and  the 
balance  forward  i.s  raised  by  $48,900  to  $555,000,  Deposits  have 
increased  nine  niillions  to  $,63,(^07,000,  «ind  notes  in  circulation 
have  expanded  ^(joo.ooo  to  $7,000,000.  Cash  is  up  $2,j6o,poo  at 
$12,582,000,  Canadian,  (joverninent  securities  have  increased 
$4,760,000  to  $6,170, <xx}  And-  other  investments  $4,500,000  to 
$10,200,000,  but  loans  and  dis<x)unts  are  practically,  stationary 
at  $42,314,000.  The  balance-sheet  totals  at  $84,294,000,  an  in- 
crease of  $11,000,000,  and  as  the- reserve- of  $b,oco,ixx)  exceed,-; 
the  paid-up  <apital  by  a  inillioii,  the  position.  i;s  undoubtedly  a 
strong  one. 

LONDON  MERCHANT  BANK,  LTD. 
Comparatively  small  changes  are  shown  in  the  report  for  the 
past  year.  Gross  profits  were  j^  1,500  higher  at  ^^68,840,  but 
expenses  rose  ;,fi,ono,  and  with  j^'2,300  more  brought  in  the 
amount  available  is  ^2,800  up  at  ^.'60, i;8o.  The  dividend  of 
5  per  cent,  is  repeated,  and  the  carry  forward  is  increased  by 
jf2,8oo  to  ^'32,080.  As  might  be  expected  under  present  con- 
ditions business  has  not  been  particularly  brisk,  and  acceptances 
show  a  dccrea.se  of  ^^'340,000  at  ;^2, 132,01x3,  while  current  ac- 
counts are  ^42,000  lower  at  Z328,o<».  Cash  and  short  loans  are 
practically  unchanged'  at  ^214, 500,  investments  are  ;^36,ooo 
down  at  ;^25o,5oo,  bils  receivable  ^26,000  at  ;^i2i,75o,  and 
current  accounts,  &c.,  ,^^312, 000  at  ^^2,(590, 000.  tt  is  satisfactory 
to  note  that  Stock  Exchange  advances  under  the  Treasury 
arrangement. of  1914.  aie  bejng .gradually  liquidated,  the  amount 
having  been  reduced  by  /'7.000  to  ^59.500  during  the  year. 
^LATir^e  BANK,   LTD. 

This  small  bank  made  .some  progress  in  the  past'  year,  and 
the  gross  profit*  show  an  increase  of  ^-4,600  at  /.'22,igo.  Ex- 
penses, however,  advanced  ;if  1,800,  ancS  the  nett  profit  of  ;^io;5i;'o 
is  ;^2,8oo  up.  After  again  paying  a  dividend  of  5  per  cent., 
;^5,ooo  is  placed  to  reserve  (raising  it  to  ^'7,500),  against  ,1^1,500 
written  off  for  depreciation  la.st  time,  and  the  balance  forward 
is  about  the  .same  at  /2,05c).  Depcsits,  &-c.,  have  increased 
;f  108,000  to  ^603,000,  in  spite  of  the  fact  that  customers  sub- 
.scribed  ^^340,000  to  War  Loan  issues,  or  68  per  cent,  of  the 
total  deposits  at  the  beginning  of  the  year.  Cash  has  in- 
creased £2-],oao  to  ;f2oi,55o,  and  Treasury  bills  appear  for  the 
first  time  at  •/.'75,ooo,  "but  other  bills  are  down  ^26,000  and-  in- 
vestments ;if  110,000.  Eia'rts  and  advances  have  increased  ^46,000 
to  ;if348,ooo. 

BANCO    DE    BILBAO. 

This  bank  announces  the  opening  of  a  London  branch  at  5, 
Bishopsgate,  E.C".,  with  the  object  of  encouraging  the  develop- 
ment of  Anglo-Spanish  commerce.  It  is  the  only  Spanish  bank 
operating  in  England.  At  '  Det^eniber  31  deposit  and  other 
accounts  amounted ''tb'*p'ts.  ■^(5,050,000,  shavings  bank  deposits, 
pts.  50,360,000,  bankers  (creditors)  pts.  43,206,000,  and  sundry 
creditors  pts.  37,664,099.  .  Assets  .include  cash'  pts.'  15,575,000, 
bills  pts.  26,865,000,  Setu'rifies^  ■  pts.'  98,267',6oo,  toahs  against 
security  pts.  3,384,000,  advances  pis..'  46565o',(j6<J,  bankers 
(debtors)  pts.  24,966,000,  -iiid  §v(nidry  -debtors  pts.  17,5^4,000. 
Reserves  stand  at  pts.  15,0007000,  again.st  an  issued  capital  of  like 
amount,  and  the  balance-.sheet  total  is  pts.  251,134,000.  Nett 
profit  forthe  ipast  half-year  amounted. to ptg.- 5,459,000,  of  Which, 
pts.  2, 275, OCX)  was  carried  to  reserve.  A  dividend  of  10  per  cent, 
was  paid  in  September,  and  a  further  dividend  of  7  per  cent. 
is  declared.  •     , 

J.    SEARS    AND    CO.    (TRUE   FORiyi    BOOT.CQ.),    LTD. 

Last  year  the  profit  of  £77,609  :(,after  deducting  excess  duty) 
was  only  a  trifle  higher  than  for  the  .previous  twelve  months,, 
but  the  balance  brought  in  was  larger  and  the  amount  avail- 
able is  £-;,Joo  up  at  £&3,yxi.  The  dividend  of  12^  per  cent, 
and  bonus  of  5  per  cent,  are  repeate'd;  and  after  again  placing 
j/?i5,ooo  to  reserve  (raising  it  to  ^■75,000);  there  remains  /25.420, 
or  £-j,~oo  more,  to  be, carried  forward.  I't  is  stated  that  the 
year's  tr.ading  has  beeh  satisfactory,  and  the  demand  for  the 
company's  goods  has  b^en  ponsiderably  greater  than  in  any  pre- 
vious year,  but  owirtg'tb  shortage  of  labour  and  requisitions  for 
Army  bocits,  it  has  not  been  possible  to  fully  meet  this  demand. 
Changes  in  the  balance-sheet  are  mostly  unimportant,  but  we 
may  nbte  that  investments  are  up  ;^40.ooo  at  £94,000  owing  to 
War  Loan  subscription,  and  cash  'is  /"5.000  higher  at  £39,5°°- 


COMPANY  MEETINGS  . 

AUSTRALIAN  'PASTORAL. 

The  ordinary  general  meeting  of  the  Australian  Pastoral  Com- ' 
pany.   Limited,  was  held  oh   MrintJrfy-at  Cannon  Street  Hotel, 
E.C,  Mi-'.  Francis  A.  Keating  (eha-irmdn-of  the  company)  pre- 
siding. 

The  Secretary  (Mr.  C.  Bright)  read  th-e  notice  and  the  report 
of  the  auditors. 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  said  he  had  tht  pleasant  ta.sk  of  congratulating  the 
shareholders  on  the  fact  that  after  two  years  of  diminishing 
earnings  the  company  had  returned  to  a  higher  .scale  of  profit 
and  an  increa.sed  dividend.  T'he  w.ir,  whidh  had  disotgahised 
so  many  industries,  had' added  to  their  difficulties  bv  the  extra 
cost  of  labour  and  increased  taxation,  but,  on  the  other  hand, 
there  had  been  an  increased  demand  for  sheep  and  cattle,  which 
had  fetched  higher  prices.  The  flocks  and  herds  of  Austr.alia 
were  becoming  increasingly  important  as  an  Imperial  asset, 
and  would  be  increasingly  ill  request  not  only  during  the  war, 
but  after,  so  that  they  need '  feel  little  anxiety -about  markets. 
The  factor  which  was  always  uncertain,  but  which  was  v'ital 
to  their  interests,  was  the  weather,  and  just  as  the  period  cri 
low   earnings   was    due    to    bad   seasons;  so   Ihe    improvement 


in  the  present  accounts  was  mainly  the  result  of  the  bountiful 
rainfall  with  which  they  had  been  favoured.       Au.str'alia  was 
not   a  country   where   they   could   expect   conditions    like   those 
to  continue,    and   dry   seasons   would    occur,    but   shareholders 
would  be  glad  to  hear  that  the  present  .season,  so  far  as  it  had 
gone,   promised  to  be  as  good  as  its  predecessor.     In   a  cable 
received    a  few  days   ago    Mr.   Young  (their  general   manager) 
said  there  had   been   excellent   rains,  and   that   prospects   were 
quite   bright.      Last  year    their  net  revenue  from  stock — that 
was  to  say,  the  balance  of  stock  sales  over  stock  purchases — was 
£111,732,    of    which    £24,exx)    was    derived    from    shtep    and 
£87,000  from  cattle.    'I'he  average  price  obtained  for  sheep  had 
been  25s.,  against   18s.  6d.  in  the  previous  year,  and  for  cattle 
nearly  £13,  against  £11  los.     The  figure  of  £111,732  compared 
with   £89,129   in   the   previous  year.     They  were  understocked 
last  year,  and  he  was  .sure  the  shareholders  would  consider  the 
board   had  acted   wi.sely  in  restricting  sales,   especially  as  the 
price  of  stock  in  Australia  for  the  current  year  was  even  higher 
than    it   had   been   for   the   previous   year,  and   they   were  more 
likely   to   gain   than   to   lose   by   the   delay   in    realisation.     The 
number   of  sheep   and   lambs   now  on   their   stations   was   about 
477,000,  against  392,000  in  their  return  at  June  30,  1916.     The 
number   of   cattle   and   calves  shown   in   the   return   of   June   30 
last  was  47,000,  against  50,500  shown  in  the  return  of  June  30, 
1916,  but  they  had   reason  to  think  that  the  reduction  of  3,500 
head   in  the  cattle  was  more   imaginary  than   real,   because   a 
good    many   calves   that   in   ordinary   years   would    have   been 
branded  before  June  30  and  included  in  last  year's  numbers  had 
remained  unbranded  owing  to  the  wet  seastm  and  the  .scarcity 
of  hands.     They  would  go  to  increa.se  the  current  year's  num- 
bers,  and   the   board   anticipated   that   they   would   be  able   in 
their  next  accounts  to  show  an  increased  income  from  sales  of 
stock.        In    that    respect   they'  had   already  ^made   an   excellent 
commencement   by   the   sale   last   month  of   40,o<X)   sheep   at   the 
increased  price  of  33s." a  head.     The  prediction  made  last  year 
of  a  reduction  in  their  income  from  wool  as  a   result  of  losses 
of   stock   through   drought,  and   the  almost   total  failure  of   the 
lambing  in  the  previous  vear  had  been  realised.     The  wool  clip 
had    amounted    to    5,631    bales,  against   10,141  bales,  and  the 
revenue  from  wool  at  £169,700  showed  a  decrease  of  £68,000. 
The  difference,   as  a  fact,  was  even  greater,  as  £18,768  of  that 
total  was  attributable  to  a  surplus  on  the  1915-16  clip  in  excess 
of  its  valuation  in  that  year's  accounts.     The  value  per  bale  bad 
been   very   satisfactory,    however,   having    amounted   to  nearly 
£27,  as  compared   with  about   £25.     The  whole  of  the   1916-17 
clip  had  been  taken  over  by  the  British  Government  on  the  basis 
of  IS.  3^d.  per  lb.   f.o.b.  Australia,  and  although  that  was  con- 
siderably below  the  open  market  price  for  wool  offered  by  the 
Government  for  sale,   it  had   given  them  a  higher   return   per 
baiie,  and   had   relieved   them   from   the  increasing  difficulty  of 
obtaining   freight.     For  the  current  year   they   should   have  a 
somewhat   larger  clip,   and,   as   it  had   been  taken  over   by   the 
Bi-itish  Government  on  the  same  terms,  they  might  anticipate 
a  larger  revenue,  although  they  would  not  have  the  advantage 
of  so  large  a  credit  as  before  from  surplus  on  the  previous  year's 
clip.    'At  the  same  time,   they  had  hopes  of  recovering  a  con- 
siderable sum  in  respect  of  1,769  bales  which,  as  mentioned  last 
yfear',  'had   been '  taken  over  by  the  Government  as  part  of  the 
1916-17  clip,   although  shorn  before  June  30,    1916.     The  com 
panv  contended   that   it  properly  formed   a  part  of  the    1915-16 
clip,   and   had  been  wrongly  taken  over,   and  they  looked  for- 
ward with  some  confidence  to  recovering  somethincr  like  £25,000 
from    that    source   as    an    addition   to  the   current    year's    wool 
income.     Dealing  with  the  estates,  the  chairman  remarked  that 
the  company's  leaseholds,  as  the  shareholders  knew,  were  sub- 
ject to  resumption  by  the  Crown  of  parts  of  the  leased  areas  at 
certain    fixed  periods,   and  the    rents  were   also   subject    to   re- 
appraisements  at  intervals  of  ten  years.     The  settlement  of  the 
resumption   on   the  Maranoa   group   had   been   completed,   and 
their  .general  manager,   Mr.    Young,   considered  that   the    divi- 
sion had  been  equitably  made.     Nevertheless,  but  for  their  pur- 
chase of  Warenda  in  1912,  made  in  order  to  provide  against  that 
eventuality,  they  would  feel  the  loss  very  severely. 

Mr.    Andrew    Williamson    seconded    the   motion,    which    was 
carried  unanimously. 


FREEMAN,    HARDY    AND    WILLIS. 

The  annual  meeting  of  Freeman,  Hardy,  and  \Mllis,  Ltd., 
was  held  on  Wednesday  at  Leicester,  Alderman  Jonathan  North, 
J. P.  (Mayor  of  Leicester),  chairman  of  directors,  presided. 

The  Chairman,  moving  the  adoption  of  the  report  .md  balance- 
sheet,  said  the  result  of  the  year's  trading  after  the  payment  of 
all  working  expenses,  debenture  interest,  depreciation  of  shop 
fixtures,  leases,  and  freehold  buildings,  was  a  nett  profit  of 
£128,698,  which,  with  the  sum  of  £57,293  brought  forward 
from  last  year,  m.-ide  an  available  balance  of  £185,992.  The 
dividend  proposed  was  12J  per  cent.,  with  a  5  per  cent,  bonus 
to  the  ordinary  shareholders.  This  was  the  same  as  paid  a 
year  a,go,  and  he  hoped  they  would  agree  that  it  should  be  con- 
sidered highly  satisfactory. "  He  knew,  however,  that  some  were 
growing  a  little  impatient,  and  considered  that  the  strong  finan- 
cial posit'ion  of  the  company  would  justify  a  larger  disburse- 
,ment,  but  he  must  remind  some  of  what  had  been  stated  re- 
peatedly, th.-it  experience  had  fully  justified  the  conservative 
policy  adopted  in  the  administration  of  the  finances  of  the  com- 
pany. It  had  guaranteed  for  many  years  a  respx^t.able  divi- 
dend i  the  capital  of  the  shareholders  had  been  safeguarded  and 
considerably  augmented,  and  when  it  was  remembered  that  the 
market  value,  of  the  shares  had  appreciated  by  something  like 
25  per  cent,  dilrlng"  ih^'  ISst  ten  years,  he  hoped  and  believed 
that  they  would  share  his  view  that  no  better  justification  for 


January  26,   1918. 


Ube  Jnvestors'  IRevlcw. 


99 


the  policy  should  be  needed.  He  pointed  out  that  provision 
had  been  made  for  financial  assistance  to  the  men  who  had 
been  called  up  for  service,  and  their  families,  and  that  other 
allocations  made  up  a  total  of  ;^25,ooo  distributed  and  for  dis- 
tribution among  the  rank  and  file  out  of  the  year's  profits,  and 
said  this  was  simply  giving  practical  and  immediate  application 
to  what  was  often  expressed  as  a  pious  hope  that  in  the  recon- 
struction after  the  war  a  more  mutual  interest  in  the  prosperity 
of  business  concerns  would  be  established  between  capital  and 
labour.  As  to  the  trade  of  the  year,  the  chairman  pointed  out 
that  there  had  been  no  recognised  standard  of  values.  It  had 
been  a  question  of  getting  supplies  and  being  willing  to  pay 
any  price  asked,  from  day  to  day.  The  steadying  influence  of 
competition  had  been  entirely  ab.sent.  Little  could  be  said 
with  regard  to  the  future.  The  outlook  afforded  no  respite  from 
present  difficulties.  Leather  of  every  kind  was  scarce,  and 
prices  were  excessively  high,  and  likely  to  remain  so  for  some 
time  to  come.  Whether  the  long-since  promised  '■war-time" 
boots  would  ease  the  situa/tion  remained  to  be  seen,  but  while 
the  problem  was  an  extremely  difficult  one,  he  had  every  confi- 
dence that  the  trade  generally  would  render  every  possible 
assistance  to  the  authorities  to  ensure  a  successful  '■  carrying- 
on." 

The  Deputy  Chairman  (Mr.  H.  S.  Gee)  seconded  the  motion, 
which  was  adopted. 

BRITISH-AMERICAN    TOBACCO. 

The  fifteenth  annual  general  meeting  of  the  British-American 
Tobacco  Co.,  'Ltd.,  was  held  on  Thursday  at  the  Central  Hall, 
Westminster,  S.W.,  under  the  presidency  of  Mr.  Joseph  Hood 
(one  of  the  deputy-chairmen),  who  was  voted  to  the  chair,  Mi. 
Duke  (the  chairman)   being  absent. 

The  notice  convening  the  meeting  was  taken  as  read,  and 
the  Secretary  (Mr.  A.  -M.  Rickards)  read  the  auditor's  certifi- 
cate. 

The  Chairman   said  :   You  will  notice  from   the  directors'  re- 


iport  that  the  output  of  the  company's  goods  has  largely  in- 
creased  during  the  financial  year.  The  Knglish  factories  have 
been  principally  engaged  in  supplies  to  the  troops  abroad, 
either  through  the  War  Office,  the  Navy  and  Army  Canteen 
Board,  and  other  organisations,  or  our  own  depots,  so  much 
so  that  about  80  per  cent,  of  our  English  manufactures  reach 
the  .'\rmy  or  the  Navy.  We  have  laid  ourselves  out  to  give 
as  many  supplies  as  possible  to  the  troops,  though  we  are 
unable  to  turn  out  anything  like  the  quantity  asked  of  us. 
Reference  is  made  in  the  report  to  the  large  increase  in  out- 
put of  the  American  factories  during  the  financial  year  under 
review  as  compared  with  the  pre-war  year.  We  early  came  to 
the  conclusion  that  the  war  might  be  prolonged,  and  made 
additions  to  our  American  factories,  not  only  in  buildings,  but 
in  plant  and  machinery,  whilst  the  opportunity  presented 
itself,  with  the  gratifying  result  that  the  output  in  America  is 
over  three  times  that  of  the  pre-war  year.  In  that  way  we  have 
been  enabled  to  continue  supplies  of  our  products  throughout 
the  world,  and  thus  maintain  the  profits,  which  we  should 
not  have  been  able  to  do  had  we  depended  upon  our  English 
factories.  Our  general  trade  from  England  has  necessarily 
decreased  to  a  material  extent,  because  of  our  supplies  to  the 
troops,  but  the  decrease  has  been  more  than  compensated  for 
by  the  additional  output  from  the  American  factories.  Our 
total  output  is  largely  in  excess  of  any  previous  year.  We 
hope  to  be  able  to  continue  that  output,  but  as  against  that 
there  is  the  fact  that,  unfortunately,  one  of  our  American  fac- 
tories (though  only  a  small  one)  was  burnt  down  last  month. 
We  have,  however,  rented  another  building,  and  are  en- 
deavouring  to  equip  it.  Further,  it  is  only  right  to  point  out, 
as  is  indicated  in  the  report,  that  supplies  of  many  materials 
are  difficult  to  obtain,  and  transport  facilities  are  much  more 
limited,  and  they  must  necessarily  affect  our  opportunities. 
At  present  we  are  unable  to  fill  all  our  orders,  and 
I  have  no  reason  to  believe  that  that  position  will 
change   during   the  present  year.      It   is   almost  unnecessary  to 


LONDON  COUNTY  &  WESTMINSTER  BANK 


HEAD    OFFICE 
Foreign  Branch 


X^IMZ'XXBD 


41,  LOTHBURY,  E.C.  2. 
82,  Cornhill,  E.G.  3. 


Authorized    Capital     -        -        -        817,000,000 
Subscribed   Capital  £16,552,020,  in  827,601  Shares  of  £20  each. 
Paid-up  Capital    -    £4,138.005      1      Reserve       £4,725,948  12s.  6d, 


WALTER  LEAF,  tsq., 

F.  J.  BARTHORPE,  ].  W.  BUCKHURST,  Joint  General  Managers. 


Sir  MONTAGU  TURNER,  Deputy-Chairman. 
A.  A.  KEMPE,  Secretary. 


BALANCE    SHEET,    Sist    DECEMBER,    1917. 


LIABILITIES.  £         id. 

Capital— Authorised  £17,000,000 

Subscribed  J!U,Si2,020  ,   . 

827,601  Shares  ot  £20  each,  £5  paid  4,138,005    0    0 

2,177  Shares  of  £20  each,  £5  paid,  issuable  against  out- 
standing fractions 10,885    0    0 

Reserye  4,725,948  12    6 

Current  and  Deposit  Accounts 142,267,948  17    7 

Circular  Notes,  Letters  of  Credit,  and  other  AccountB,  inolnd- 

ing  provision  for  contingencies  4,394,674  16    8 

Acceptances   for  Customers 5,375,651  17    b 

Endorsements  on  Bills  negotiated 72,956    0    0 

Rebate  on  Bills  not  due 193,215    0    1 

PROFIT    AND    LOSS. 
Net  Profit  for  the  year,  including  ^£182,291    3   0  brought  from 
year    1916,    £1,453,358  5  7.      From    this    the    following 
appropriations  have  been  made  : — • 
Interim  Dividend  of  9  per  cent,  paid  in 

August  last £315,000    0    0 

Contingency  Fund    (Investments    and 

Foreign  AocounU)  460,500    0    0 

Bank  Premises  Account 100,000    0    0 

£875,500    0    0 
I^eaviug  for  payment  of  a  further  Dividend  of 

10  per  cent.,  on  1st  February  next 393,259    6    8 

And  a  Balance  to  carry  forward        184,598  18  11 

£161,757,143    9  10 


443,170  14    8 


Casb—  assets.  £  i   d         £  •   < 

In  hand  and  at  Bank  of  England  . .  25,197,729  14  U 

Money  at  Call  and  Short  Notice  . .        . .  26,983,535    2    1 

52,181,264  17    0 

Bills  Discoukied 24,288,333  13    2 

Investments — 
Consols  and  5  per  cent.   War  Loan  (of    which  £950,376  is 
lodged  for  Public  Accounts),  and  other  Securities  of,  or 
guaranteed  by,  the  British  Government  . .  32,408,994  16  11 
Indian     Government     Stock,     and     Indian 
Government  Guaranteed   Railway    Stocks 

and  Debentures 

Colonial     Government     Securities,     British 
Corporation  Stocks,  and    British  Railway 

Debenture  Stocks  670,641  16    6 

Other  Investments 1,465,137  12    5 

34,987,945    0    t 

L0Nt>ON  COUNTI'   AND    WSSTUINSTKR   BaNK  (PaEUS),  LlUtTED^ 

8,000  £20  Shares  fully  paid,  32,000  £20  Shares  £7  IDs  paid  . .  400,000  0  0 
Ulstek  Bakk,  Limited — 

19t,666  £15  Shares,  £2  10s.  paid         1,861,493  12  6 

Advances  to  Customers  and  other  Aoooonts  (including  pre-mor- 

atorium  Stock  Exchange  Loans) 40,800,158  16  11 

Liability  of  Customers  for  Acceptances,  as  per  contra     . .        , ,  5,375,651  17  5 

Bills  Negotiated,  as  per  contra 72,956    0  0 

Bank  and  other  Premises  (at  cost,  less  amoanta  written  off)   . .  1,789,279  12  4 


£161,757443    9  10 


WALTER  LEAF,  M.  C.  TURNER,  C.  SEYMOUR  GRENFELL,  Direotorft  F.  J.  BARTHORPE,  J.  W.  BUCKHURST,  Joint  General  Maaacers. 

A.  O.  PIKE,  Chief  Accountant. 

AUDITORS'  REPORT. 

We  have  examined  the  above  Balance  Sheet  and  compared  it  with  the  Books  at  Lothbury  and  Lombard  Street,  and  the  Certified  Returns  received  from  (he 
Branches. 

We  have  verified  the  Cash  in  hand  at  Lothbury  and  Lombard  Street  and  ac  the  Bank  of  England  and  the  Bills  Discounted,  and  examined  the  Becnrities  held 
against  Money  at  Call  and  Short  Notice,  and  those  representing  the  Investments  of  the  Bank. 

We  have  obtained  all  the  information  and  explanations  we  have  required,  and  in  our  opinion  the  Balance  Sheet  is  properly  drawn  up  so  as  to  exhibit  a  irae 
and  correct  view  of  the  state  of  the  Company's  alTairs  according  to  the  best  of  our  information  and  the  explanations  given  to  us,  and  as  snown  by  the  Books  of  the 
Company. 

London,  15th  January,  1918.  FRED.  JOHN  VOUNO,  F.C.A.,  Q.  E.  SENOELIi,  F.OA.,  Aadilo» 


lOO 


vTbe  Jnvestora  IReview. 


January  26,    1918. 


say  that  prices  of  all  materials  have  gone  up,  and  in  many 
instances  by  leaps  and  bounds,  for  that  is  common  knowledge, 
but  what  is,  perhaps,  of  more  importance  is  the  difficulty  of 
getting  some  supplies  in  the  necessary  quantities.  The  prin- 
cipa'l  item  upon  which  we  are  dependent  is,  of  course,  leaf 
tobacco,  nearly  all  of  which,  so  far  as  our  Knglish  factories  are 
concerned,  has  to  be  brought  from  America.  In  my  observa- 
tions to  you  last  year  I  mentioned  that  a  scheme,  known  in  the 
trade  as  the  "  British-American  Scheme,"  under  which  leaf  from 
the  United  .States  for  manufacture  Tnto  tobacco  and  cigarettes 
for  the  export  trade,  for  the  troops  abroad,  for  ships'  stores, 
and  for  Admiralty  requirements  was  in  force,  under  which 
tobacco  was  imported  in  addition  to  the  ration  of  one-third, 
authorised  by  the  Board  of  Trade,  provided  the  tobacco  was 
carried  in  neutral  steamers  not  habitually  trading  with  this 
country,  and  which  should  also  carry  goods  of  national  im 
portance.  We  arranged  for  the  necessary  steamers,  and  the 
tobacco  was  carried,  not  only  for  ourselves,  but  for  the  other 
manufacturers,  until  the  .scheme  expired  in  May  last.  Other 
goods  of  national  importance  were  also  carried.  The  Board  of 
Trade,  however,  did  not  see  their  way  to  sanction  the  renewal 
of  the  scheme  to  the  full  extent  for  the  year  ending  May  next, 
but  limited  the  import  to  less  than  one-half  the  previous  quan- 
tity. Whilst  all  the  .steamers  are  not  now  available,  it  is, 
however,  hoped  that  substantial  supplies  will  reach  this  country 
during  this  year  by  the  vessels  still  available,  and  in  that 
way  do  something  to  redress  the  deficiency  in  stocks  in  this 
country,  and  particularly  those  required  for  supplies  to  the 
troops. 

After   dealing    fully   with   the   balance-sheet,    the    Chairman 
continued  :    You   will   remember   that   we  recommended    in  the 
annual  report   last  year  the  distribution  of  one  ordinary  share 
of  $5  of  the  Canadian  Company  in  respect  of  every  four  ordi- 
nary  shares   of  the  company.   In  consequence  of  certain   d'ffi- 
culties   which  then    arose,    the    recommendation  was   withdra.'n 
at   the  annual   meeting,  with  a  view  to  making  certain  altera- 
tions in   the  articles  of   association   to  permit   the   distribution 
to    be  made    in  the  form  we   were   advised   it  should    take.      A 
few  days  after  the  annual  meeting  an   Order  in   Council  was 
issued,  which  had  the  effect  of  preventing  the  distribution  of 
any  shares  of  a  company  incorporated  abroad,  as  the  Imperial 
Tobacco    Company   of   Canada,   Ltd.,    is,    to  any   shareholders 
outside  the  United  Kingdom,  or  the  sending  of  any  certificates 
or  transfers  of  any  shares  out  of  the  country.     The  Treasury 
at  the   time  did  not  see   its   way  to  grant  permission  for  the 
distribution,   and  later  on  in  the   year,  in   October,  we   circu- 
larised  the  shareholders,   and    informed    them    that    we    were 
satisfied  that  the  consent  of  the  Treasury  was  not  likely  to  be 
given  during   the  war,  and  we  had    decided  to   abandon    the 
idea  of  the   distribution.      We  said    that   an    important    point 
which  determined  us  in  coming  to  this  conclusion  was  the  fact 
that,   in  consequence  of   the  enormous  increase   in  the   cost  of 
leaf  tobacco,  in  many  cases  at  least  double  the  price  of  a  year 
before,   it   was  absolutely   necessary,  in   order  to  purchase  the 
necessary  supplies,  to  employ  some  millions  of  additional  work- 
ing capital,    and  we  had,  therefore,  agreed  to  sell  out  of   the 
holding  of  the  company  1,000,000  ordinary  shares  of  Imperial 
Tobacco    Co.    of    Canada,    Ltd.,   and    the   Treasury   had   con- 
sented thereto.     I  may  say  that  in  asking  for  permit  to  sell  the 
shares,  we  explained  that  we  wished  to  remit  the  proceeds  to 
the    United    States    in    payment    for    leaf     tobao;o,    and     the 
Treasury  consented  to  the  sale   if  the  shares  were  sold  to  per- 
sons ordinarily  resident   in   the  United   Kingdom,  also  to  our 
remitting  the  proceeds.    The  sale  took  place  after  September  30, 
191 7,  the  date  to  which  the  balance-sheet  under  review  is  pre- 
pared,   and,   therefore,   the    amount    realised   from    the   sale  of 
the  1,000,000  shares  does  not  come  into  these  accounts.     It  is, 
however,  proposed  to  carry  the  difference  between  the  amount 
realised  and  the  value  at  which  those  shares  stood  in  the  books 
to  the  credit  of  the  item  which  I  am  now  discussing — namely, 
the  special  reserve — when  the  accounts  for  the  j'ear  ending  Sep- 
tember 30  next  come  to  be  prepared,  and  this  addition  will  bring 
up  that  account  to  nearly  a  million  pounds.  You  will,  no  doubt, 
appreciate  that   by  the  creation    of   a    special   reserve    of   that 
amount  the  financial  pcsition  of  the  company  will  be  materially 
strengthened,  especially  as  it  will  be  in  addition  to  the  item  of 
jf  1,500,000  general   reserve  to   provide   against  possible   losses 
arising  from  the  war,  which  .still  remains  on  the  balance-sheet. 
I  do  not  know  that  I  can  offer  any  additional  observations  upon 
that  item  of  ij  millions — which  represented  nearly  the  whole  of 
our  assets  in  enemy  countries — beyond  those  I  have  mSde  in  pre- 
vious years,  as  it  is  impossible  until  after  the  end  of  the  war  to 
say  what  our  losses  will  be  and  to  what  extent  there  will  be  an 
inroad  upon  the  item.     I    have  no   reason  to  believe  that   our 
estimate  of  the  loss  will  be  greater  than  that  which  I  mentioned 
last  year— viz.,    something    approaching  half    the    amount    re- 
served.     I    may  mention   that   the  question    of    claims    against 
enemy  countries  has  been,  as  you  are  probably  aware,  receiving 
the  consideration  of  the  Government  lor  a  Ion?  time  past,  and  a 
Special  Committee  was  appointed,  called  the  Enemy  Debts  Com- 
mittee, to  consider  the  process  to  be  adopted  after  the  war  in 
settlement  of  claims  of  this  nature,  as  well   as  ordinary  debts 
owing  from  one  belligerent  to  another.     I  had  the  opportunity 
of  giving  evidence  before  that  Committee  of  the  views  we  enter- 
tained as  to  what  should  be  done,  and  I  have  no  doubt  the  whole 
subject   has  received  the  serious  attention  of  the   Government. 
The  profits  for  the  year  amount  to  ;f  3, 105,002,  as  compared  with 
;^a, 733,361,  an  increase  of  ;i'37i,64o,  which,  I  feel  sure,  will  be 
satisfactory  to  you.     We    have    been    working,  so  far  as  our 
English  factories  are  concerned,  at  a  reduced  profit,  but  on  the 
other  hand,  as  I  previously  mentioned,  our  output  in  America 
has  been  very  substantially  increased,  and  it  is  principally  due 


to  that  and  other  advantageous  circumstances  that  we  are  en- 
abled to  show  this  increased  profit.  The  available  balance 
standing  to  the  credit  is  now  ;^2,9oi,958,  subject  to  excess  profits 
duty  for  the  year.  It  is  difficult  to  make  any  definite  state- 
ment with  regard  to  that  duty,  because  of  the  possibility  of  a 
set-off  of  capital  losses  arising  from  the  war  aeainst  the  duty, 
which  is  a  matter  which  can  only  be  determined  after  the  war, 
when  the  los.ses  are  definitely  ascertained,  and  in  addition  there 
is  the  necessity  to  make  provision  for  excess  profits  duty  in 
respect  of  those  companies  (even  although  operating  entirely 
abroad,  and  making  the  whole  of  their  profits  there),  iii  which 
we  own  the  whole  of  the  ordin.iry  share  capital,  which  are 
treated  for  this  purpose  as  branches  of  the  company.  Wc  are, 
therefore,  not  in  any  position  to  say  what  amount  will  have  to 
be  deducted  from  the  ;J^2,90i.958  to  provide  for  the  excess  profits 
duty  which  may  become  payable.  You  will  observe  that  the 
directors  recommend  the  distribution  of  a  final  dividend  (free 
of  British  income-tax)  on  the  ordinary  shares  of  6  per  cent., 
amounting  to  ;f375,25g,  making  30  per  cent.,  free  of  British 
income-tax,  for  the  year,  as  compared  with  30  per  cent,  last  year, 
leaving  ;^2, 526,699  to  be  carried  forward,  subject  to  Whatever 
amount  is  payable  in  respect  of  excess  profits  duty  for  the  year. 
I  need  hardly  say  that  the  question  of  the  final  dividend  has 
received  our  anxious  consideration,  and  whilst  I  do  not  doubt 
that  some  of  you  may  feel  some  disappointment  that  you  did  not 
get  the  bonus  distribution  which  was  recommended  last  year, 
and  will  not  get  any  increased  dividend  this  year  as  cornpared 
with  last,  except  so  far  as  you  are  relieved  from  the  additional 
income-tax,  which  is  equal  to  a  dividend  of  2^  per  cent.,  yet  we 
do  not  think  that  we  would  be  ju.stified  in  recommending  a 
larger  dividend,  although,  of  course,  the  figures  if  taken  alone 
warrant  it,  in  view  of  the  uncertainties  of  the  future  and  of  the 
impossibility  of  forecasting  what  the  course  of  business  may  be 
in  the  present  year,  and  what  the  balance-sheet  which  we  hope 
to  present  to  vou  this  time  next  year  will  disclose.  In  par  • 
ticular  we  do  not  think  it  would  be  prudent  on  our  part  to  re- 
commend a  larger  dividend,  owing,  as  we  do,  such  a  large 
additional  amount  as  2J  millions  to  our  bankers  for  borrowed 
money.  There  is  the  further  point  which  we  had  to  consider 
that,  in  consequence  of  the  large  increase  in  the  cost  of  leaf  and 
materials  necessary  to  carry  on  the  business,  something  like 
three  millions  .sterling  additional  money  has  been  required  for 
the  working  capital  of  the  company,  and  apparently  there  is  no 
finality  to  the  increase  of  prices  of  materials.  Practically  that 
three  millions  has  been  provided  by  the  additional  loans  from 
our  bankers  and  undistributed  profits.  A  company  of  this 
character,  with  its  large  world-wide  busine.ss,  cannot  stand  still, 
but  must  either  advance  or  go  back,  and  therefore  it  is  absolutely 
essential  that  it  should  have  the  necessary  working  capital  to 
enable  it  to  continue,  so  far  as  it  is  possible,  to  advance  rather 
than  to  go  back.  It  may  also  not  have  appealed  to  you  that  after 
the  war,  when  prices  of  materials  have  fallen,  the  company,  in 
common  with  others,  may  be  left  with  stocks  bought  at  high 
prices,  but  it  is  a  point  we  cannot  leave  out  of  consideration.  I 
know  that  is  a  point  which  is  causing  a  pood  deal  of  thought 
to  many  directors  of  public  companies.  However,  if  we  can 
secure  the  necessary  leaf  and  materials  and  the  transport  to 
enable  us  to  continue  our  manufacturing  operations  to  the  full 
we  may  look  forward  when  the  horizon  is  a  little  clearer  to  the 
time  when  we  shall  be  able  to  make  our  distributions  more  com- 
mensurate with  the  earnings  of  the  company.  I  am  glad  to  be 
able  to  say  that  the  output  of  the  company  and  its  associated 
companies  abroad  shows  an  increase  of  20  per  cent,  for  the  first 
three  months  (October  to  December)  of  our  present  financial  year 
as  compared  with  last. 

Mr.  Lawrence  Hignett  seconded  the  resolution,  which  was 
carried  unanimously. 

AFRICAN    BANKING   CORPORATION. 

The  48th  ordinary  general  meeting  of  the  members  of  the 
African  Banking  Corporation,  Ltd.,  was  held  on  Thursday,  at 
Winchester  House,  Old  Broad  Street,  E.C.,  the  Right  Hon.  the 
Earl  of   Selborne,   K.G.   (the  chairman),  presiding. 

The  Secretary  (Mr.  Alexander  Duncan)  read  the  notice  con- 
vening the  meeting  and  the  report  of  the  auditors. 

The  Chairman,  in  moving  the  adoption  of  the  report,  said 
that  the  directors  were  glad  to  be  able  to  submit  such  a  satisfac- 
tory balance-sheet  to  the  shareholders.  It  showed  a  strong 
liquid  fiosition.  The  cash  and  securities  on  the  asset  side 
equalled  over  37  per  cent,  of  the  deposits,  and  if  they  included 
also  the  bills  of  exchange  which  were  maturing  from  day  to  ' 
day  they  got  over  68  per  cent.  The  reserve  was  increased  to 
y"25),ooo,  as  they  were  able  to  put  ;f3f>.ooo  'his  year,  as  against 
jf  10,000  last  year,  to  the  credit  of  this  account.  Deposits.  &c., 
amounted  to  '^^6,722, 172,  or  an  increase  of  about  ;f986.ooo.  The 
total  figures  of  the  balance-sheet  were  ;£^8,4i  4,926,  and  they  bore 
convincing  evidence  to  the  growth  and  extension  of  the  bank's 
business.  Th!^  also  indicated  the  soundness  and  expansion  of 
the  commercial  and  agricultural  position  of  South  Africa,  not- 
withstanding the  ravages  in  other  parts  of  the  world  caused  by 
the  war.  Looking  at  the  profit  and  loss  account,  it  would  be 
seen  that  the  increase  of  the  bank's  business  had  naturally 
yielded  better  results.  The  directors  now  proposed  a  further 
dividend  at  the  rate  of  8  per  cent,  per  annum,  making  7J  per 
cent,  for  the  year,  carrying  forward  to  next  account  the  balance 
of  ^^28,740.  Referring  to  the  exports  and  imports,  he  said  that 
not  only  had  South  Africa  responded  to  the  war  stimulus  by 
greater  self-sufficiency  in  regard  to  staple  foods  and  necessaries 
for  itself,  but  it  had,  out  of  its  abundance,  been  able  to  minister 
to  the  needs  of  other  parts  of  the  world,  principally  Great 
Britain.     Generally  speaking,  South  Africa  could  be  said  to  \k 


January  26,   1918. 


ZIbe  Jnveetors'  "Review, 


lOI 


taking  a  more  and  more  important  share  in  food  production  for 
the  benefit  of  the  Empire.  If  they  cast  their  eyes  over  the 
whole  of  this  old  world,  staggering  under  the  greatest  affliction 
that  the  human  race  had  ever  experienced,  they  would  see  that 
this  wonderful  country  of  South  Africa,  smiling  under  a  bene- 
ficent sunshine,  rich  in  minerals,  grains,  fruits,  and  cattle,  and 
protected  by  the  sure  shield  of  the  British  Nav}',  had  suffered 
less  than  any  other  country  in  the  world,  and  was  as  sound  and 
prosperous  commercially  as  any  on  the  globe.  He  told  the 
shareholders  last  year  that  he  saw  no  prospect  of  the  early  close 
of  this  terrible  war,  and  he  said  exactly  the  same  thing  to-day. 
There  was  no  evidence  whatever  that  he  could  see  that  German 
military  autocracy  had  abandoned  its  ambition  to  secure 
dominion  of  the  earth ;  nor  was  there  any  evidence  that  it  had 
ceased  to  be  the  one  power  in  Germany  which  counted.  That 
military  autocracy  considered  perjury  and  murder  to  be  proper 
weapons,  if  used  on  behalf  of  the  German  State.  It  followed 
that  no  ordinary  arrangements  or  treaties  with  that  military 
autocracy  could  be  reckoned  on  as  of  any  more  value  than 
scraps  of  paper.  Tt  therefore  depended  upon  the  Allies  to  make 
their  own  securities  for  the  future.  He  could  not  think  that 
any  greater  condemnation  would  ever  be  passed  on  any  nation 
by  historians  in  the  future  than  it  would  be  upon  us  if,  after  this 
terrible  sacrifice  of  our  sons  and  our  brothers,  we  allowed  this 
war  to  come  to  such  a  termination  that  the  earth  might  have  a 
repetition  of  this  horror  within  the  next  generation.  He  had 
complete  and  absolute  confidence  in  the  nerve  of  our  race,  and 
that  those  who  had  put  their  hands  to  the  plough  would  go 
forward  and    drive   the    furrow   through. 

Mr.  Robert  Littlejohn  seconded  the  motion,  which  was  carried 
unanimously. 


IN  DUN  RAILWAYS. 


Name. 


GROSS  TRAFFIC  FOR  WEEK. 


Week 

ending 


Amount 


Jin.  or  dec. 

on  last 
I      vear. 


GROSS  TRAFFIC  TO  DATE. 


Amount 


In.  or  dec. 
on  last 
year. 


Assam  Bengal 

Barsi 

Bengal  &N.-W.     .. 

Bengal  Nagpiir 

Bombay,  Bacoda  .. 

Burma 

Delhi  Umballa 

East  Indian.. 

Gt.  Indian  Penln.  .. 

Lucknow-Bareilly. . 

Madras      and       S. 

Mahratia  .. 
Nitam'sGd.  (Broad) 
,,        ,,     (Metre) 
Robilkund  and 

Kumaon  .. 
South  Indian 


Nov. 

^ 

,, 

24 

,, 

17 

,, 

24 

Ian. 

■i  1 

Nov. 

17 ! 

Jan. 

12 

11 

12 

Nov. 

17 

„ 

2< 

,, 

24 

" 

24 

,, 

>7 

., 

24 

Rs. 

1.23.535 
25,qoo 

3.25.220 

9,85,000 
i4,sg,oco 

3.84.540 

85,900 

24.28,000 

24,92,700 

20,81,100 


Rs. 

—  28,726 

—  6,800 

—  1,50,461 
+       8,000 

—  1,53,000 

—  25.199 
-t-  16,500 
-f  1,14,000 
+  9,69,200 
+  5.73.000 


9,40,003  [+     32,788     f 

1,29,478  ;—         499     t 

81,521  i—      4,777  I  )• 


30,736  i— 
6,43.136  !-!■ 


8,182 
63,810  I 


Rs. 

5,94.789 
5,38,10c 

21,96,620 
3.45.31.358 
1,87,00,000 
1,27,14,720 

13,54.986 
3,44,17,000 
3,16,05,300 
2,91,12,600 

70,90,000 
9.37,223 
5,17,609 


Rs. 

—  1,07,494 

—  i,5g,cco 

—  4,39,188 
+  26,6»,558 

—  10,21,000 

—  2,46,888 
+  1,50,747 
-t-  14,16,000 
-f  22,82,003 
+  13,12,803 

+  3,37,615 
-H        68,272 

—  32,995 


2,63,117  -I-  4,467 

49,69,114  +    3,05,617 


+  April  I. 


t  October  i. 


TRAMWAY  AND  OMNIBUS.— HOME. 


f 

f. 

£ 

£ 

Dublin  United 

Jan.  11 

6,824 

+ 

655 

t 

11,006 

+        963 

Hasting  and  Dist.. 
Isle  of  Thanet 

.,   21 

855 

— 

28 

t 

2,611 

-       268 

..      5 

1S4 

— 

104 

1* 

2,290 

—     1,434 

Lancashire  United.. 

.,    16 

2,202 

+ 

492 

t 

5,334 

+      1,098 

Provincial    .. 

.,     5 

2,3-6 

+ 

250 

32,291 

+       4,2c8 

Yorks.  (Wst.  Rdng.) 

,,    20 

2,125 

+ 

399 

t 

6,807 

+       1,205 

♦  From  Oct.  i. 


f  From  Jan.  i. 


TRAMWAY  AND  OMNIBUS.— FOREIGN  AND  COLONIAL. 


Alabama  Power  . . 
ADglo-Argentine  ,. 
Auckland  Electric. . 
Brazilian  Traction  . 
Brisbane  Eleo.  Inv. 
British  Columbia  . . 
B.A.  Lacroze 
Burmah  Electric  .. 
Calcutta 
Carthagena  and 

Herrerias  . .        , . 
Cordoba  Light 

P.  &  T 

Hongkong   .. 
La  Plata 

Lima 

Madras  Electric    .. 

Manila  Electric 

Mexico 

Rangoon 

Singapore  Electric 

Toronto 

United  of  Monte  V. 

Vera  Cruz    ,. 

Winnipeg    . . 


i 
Nov.  3 
Jan.  21 
Oct.  a6 
Nov. 
Oct. 
Nov. 
Dec. 

I 

Jan.    12 
Dec      b 

Oct. 

Nov.   17 
Dec.     b 
Nov. 
Jan.  15c, 
Aug.  8 
Nov.  S 
Dec.   5 
Oct.  27 
Nov.    i  ' 
Dec. 
Oct.    S  , 
Nov.        I 


£ 

£ 

Ms. 

£ 

114,^96 

-H 

24.747 

12 

1,277,830 

52,850 

-1- 

6,032 

. 

160,264 

22,308 

+ 

8S0 

a 

92,118 

M7,695,ooo 

+ 

M535.000 

11 

M84131C00 

33,580 

-*• 

820 

10 

328,420 

»14I,3':9 

+ 

•31.772 

4 

•432,464 

40,901 

+• 

795 

6 

230,476 

Rs.26,224 

— 

Rs  6,327 

— 

109,108 

Rs. 74,367 

+ 

Rs.642 

* 

Rs. 131, 539 

4,424 

+ 

2,025 

* 

49,566 

12,481 

— 

1,052 

7 

95,376 

12,308 

— 

»55 

•622,320 

4,605 

+ 

169 

12 

48,962 

16,965 

+ 

1,99b 

n 

159,413 

Rs.  37,736 

+ 

Rs.1,243 

• 

Rs.37,736 

65,467 

+ 

4,667 

8 

547,492 

•  215,256 

— 

•  108,669 

• 

83,193,106 

5,4i8 

-1- 

534 

54,751 

»12,357 

— 

»26o 

•529,661 

♦  42^,556 

— 

♦  8,753 

11 

•5,032,176 

34.025 

t- 

2,661 

2 

65,085 

56,300 

— 

t 

520,700 

t86,888 

— 

»14,744 

11 

•748,976 

£ 

+  359,725 

+  10,271 

+  7,832 

•fM6558ooo 

—  2,coo 
+  •29,124 

—  419 
4-  Rs. 1,483 
■f  Rs.3,104 

-I-  19.776 

—  2,640 

—  »40,243 
1.873 

+  4,830 

4-  Rs.1,243 

+  70,625 

—  •197,227 
-I-  2,509 
+  •12,549 
+  •239,133 
+  5,317 


—  •327,782 


i  28  days.       •  From  Jan.  I,      S  Nett.       a  From  July  i.      c  Two  weeks. 


COLONIAL  RAILWAYS 

£ 

£ 

£ 

£ 

Ueica 

Aug.  'c 

54,914 

—    12,287 

10 

706,175 

+      4,297 

Canadian  Northern 

Jan.    7 

•  565,800 

—  $32,900 

I 

•22,422,600 

+   9192,400 

Canadian  Paoifio   . . 

„    H 

♦2,368,000 

—  •49,000 

+ 

•4,71 1, coo 

-1-     856,000 

Gt.  Trk.  Main  Line 

,,    21 

128,269 

—    41,150 

t 

446,561 

—     67,205 

GtiTtk.  Western.. 

„    21 

26,753 

—     4,624 

t 

93,410 

—         1,377 

Detroit  G.  H.  &  M. 

,,    21 

9,134 

—      1,078 

t 

31,408 

+            360 

Or  TkPac  Prairie  Sc 

„    14 

22,814 

+      9,710 

I 

22,814 

f         9,710 

Mashonaland 

Sep.    • 

47,670 

—     9,630 

I 

47,670 

9,630 

Mid.  of  Westn.  Aus. 

Nov.   • 

8,206 

—        199 

S 

33,562 

4-           1,108 

New  Cape  Central.. 

Dec.   8 

2,241 

+           443 

+ 

91,394 

4-        14,600 

Rliodesia 

Oct.    'c 

99,687 

4-      11,023 

I 

99,687 

4-        11,023 

FOREIQN  RAILWAYS. 

AlcoyandGandta.. 
Antofagasta    (Chili) 

Jan. 

12 

Ps.    9,000 

— Ps.  3,0C0  I 

4 

Pa.  15,000 

-P«.  5.370 

,, 

20 

37,510 

— 

5,335 

1 

"1.350 

10,590 

Arauco 

Nov. 

3 

15.000 

4- 

3,500 

1 

l'7,5«> 

+• 

21,300 

Argentine  N.E.      .. 

Ian. 

19 

10,100 

4- 

3,«oo 

t 

23).5«o 

4- 

41.798 

Bilbao  R.  and  Canta 

Oct. 

3,9'" 

— 

1,426 

to 

35.861 

10,946 
22.821 

Bolivac 

Dec. 

* 

12,000 

4- 

4,193 

6 

67,132 

4- 

Brazil 

Oct. 

♦ 

M4,209,ooo 

-fM208,l7l 

t 

M  40607000 

4-  M4574592 

Bratil  Gt.  Southern 

Aug. 

. 

Mls.38,300 

4- 

M2,o8o 

) 

M323,937 

4- 

M43.467 

B.  Ayres  &  Pacific 

Jan. 

19 

113,000 

4- 

17,000 

t 

2,162,000 

— 

321,000 

Do.  Central     .. 

Dec. 

30,817 

4- 

8,031 

t 

145,925 

— 

5.054 

Do,  Gt.  South'n 

Ian. 

20 

140,000 

— 

1,000 

1 

2,822,705 

— 

315,549 

Do,       Western 

20 

58,000 

4- 

1,000 

1 

1,209,000 

— 

299,000 

Central  Argentine.. 

, 

19 

153,000 

4- 

50,100 

I 

2,674,200 

— 

502,6o» 

C.Ur'g'ayotMlsV. 
Do.   East'nEi. 

, 

«<) 

18.272 

4- 

4,708 

1 

510,063 

4- 

141,274 

, 

iq 

4767 

. — 

■55 

I 

136,618 

4- 

Do.North'nEz. 

19 

3,619 

— 

679 

1 

87,346 

4- 

24,288 

Do.  Westn  Ex. 

, 

19 

2,722 

4- 

364 

J 

60,152 

4- 

4.689 

Cordoba  Central  .. 

19 

35,700 

+ 

8,865 

877,180 

4- 

13,230 

Costa  Rica   . 

Dec. 

8 

1,998 

— 

',997 

i 

S^'i^S 

— 

47,299 

Cuban  Central 

Jan. 

19 

28,120 

4- 

2,599 

I 

380,876 

4- 

79,942 

Dorada  Extension.. 

IVc. 

8,200 

— 

300 

i 

106,900 

4- 

7,200 

Egyptian  Delta      . . 

Nov. 

20 

10,177 

4- 

1,693 

s 

162,393 

4- 

28,492 

Entre  Rios  . . 

Ian. 

■9 

19,200 

1- 

6,800 

I 

389,300 

4- 

57.700 

French  Sante  F4  . . 

Aug. 

132,000 

4- 

29,099 

8 

900,336 

4- 

173.429 

Gt.  South,  of  Spain 

Ian. 

12 

Ps.   30,354 

- 

1^559,813 

1 

Ps.    54,211 

—  Ps. 121234 

Gt.West.  of  Brazil.. 

<9 

20,300 

4- 

4,300 

1 

53,100 

4- 

11,530 

Havana  Central     . . 

•j 

9,523 

+ 

1,389 

t 

208,722 

4- 

27.875 

Inter,  of  C.  Amer... 

Nov. 

C 

11,712 

+ 

5,238 

t 

240,431 

— 

34.242 

La  Guaira  and  Car. 

Dec. 

6,500 

— 

750 

1 

87,000 

— 

5,500 

Leopoldina., 
Midland  Uruguay  . . 

Tan. 

10 

35,372 

4- 

16,222 

t 

94,569 

+ 

37.601 

Dec. 

15,106 

4- 

1,520 

6 

83,506 

4- 

10,009 

Mogyana 

N.W.  of  Uruguay.. 

Oct. 

M2, 411,000 

4- 

VIl25,l98 

t 

Mig427,MO 

4- 

M  23 ,272 

Dec. 

•  33.000 

4- 

•8,388 

b 

•  159,682 

4- 

» 13,092 

Nitrate 

Ian. 

IS 

34,8o3 

+ 

2,590 

< 

34,808 

4- 

2.590 

Paraguay  Central  .. 

19 

2,780 

+ 

600 

J 

82.300 

4- 

8,250 

Paulista 

Oct. 

M3,475.ooo 

+  M245,626 

10 

M27i48,ooo 

+  M846,588 

Peruvian  Corpn    . . 

Dec. 

* 

81,101,090 

4- 

3110,248 

5 

S  6,088,270 

4-S  382,778 

Salvador 

I.Z. 

12 

»2,203 

4- 

•36 

t 

•433,029 

— 

JA'"'^ 

State  of  BahiaS.W. 

* 

M85,OOD 

— 

M45,ooo 

n 

Ml,O21,0OO 

— 

M66,ooo 

8.  Paulo  (Brazilian) 

Ian. 

20 

32,582 

+ 

5,844 

+ 

eio6,437 

4- 

28,964 

Sorocabaoa. , 

Dec. 

* 

M2, 107,000 

4- 

M224,206 

7 

M  16,988 

4-M1735205 

Taltal 

. 

29,108 

4- 

13,306 

6 

150,436 

4- 

38,895 

United  of  Havana.. 

Jan. 

19 

77,401 

4- 

22,577 

t 

1,228,738 

4- 

245,660 

West'n  of  Havana. . 

■9 

9.944 

4- 

3,710 

t 

210,422 

4- 

44,202 

Zafra  and  Huelva. . 

Nov. 

10,538 

— 

403 

12 

123,820 

~ 

3,33a 

*  Months,  t  From  Jaa.  x.  I  From  Juiy  i.    c  Nett.    b  15  days,    a  10  days. 
MONTHLY    STATEMENTS. 


NETT   EARNINGS  FOR    MONTH. 


;  Month. 


Amount. 


In,  or  Dec. 
on  last  year 


NETT  EARNIHGS  TO  DATE. 


°4 


Amount. 


In.  or  Deo. 
onlaslyeac 


Atohlson  T.  &  S.  Fi 
Atlantic  Coast  Line 
Baltimore  &  Ohio  .. 
Canadian  Northern 
Canadian  Pacific  .. 
Chesapeake  &  Ohio 
Chicago  &  N.W.  .. 
Chicago  Burt.  &  Q. 
Chicago  G.VV. 
Chicago  Mil.&S.P. 
Chicago,  Rock  l.&P. 
Colorado  &Soutbern 

Cuba 

Delaware  &  Hud.  .. 
Denver  &  Rio  Gran. 

Brie 

Gr.Tr.  Main  Line.. 
Grand  Trunk  Westn 
DeiroitG.H.&Mil.. 
Gt.  Northern 
Illinois  Central 
Kansas  City  Southn. 
Lehigh  Valley 
Louisville  &  Nashvl. 
Minn.S.P.  (Soo)f  .. 
Mi&3.  K.  8t  Texas  .. 
Missouri  Paciiio  .. 
NewYorkCent.&H. 
N.Y.  N.  Haven  &H. 
NewYorkOnt.&  W. 
Norfolk  &  Western. 
Northern  Pacific  ., 
Pennsylvania  East 
and  West  Lines.. 
St.  Louis  &  San  F. . 
Seaboard  Air  Line., 
Southern 

Southern  Paciho   . . 
Union  Pacific 
Wabash 


Nov. 

Sep 

Nov 


Oct. 


Oct. 


Nov. 
Oct. 


Nov. 

Oct, 


Dols. 
4,500,000 

757,000 
1,918,000 
i8,5y3,6oo 
5,258,000 
1,303,000 
2,747,000 
2,943.000 

283,000 
3,co5.ooo 

2,128,000 

536,000 

89.465 

489,000 

336.325 

1,246,000 

£86,200 

&O5.650 

6^61,700 

2,684,000 

1,852,000 

351,000 

921,000 

1,583,000 

635,598 

926,000 

a, 212,000 

5,662,000 

1,875,000 

150,00c 

1,991,000 

3,147,000 

i5,338iOOO 
1,875,000 
744,000 
3,104,000 
7,077,000 
3,961,000 

I,2I4<000 


I       Dols. 

i— 1,062,000 
1+  132,000 
1—1,050,000 

l—  437,500 

306,  coo 
91,000 
527,000 
—1,365,000 

—  196,000 

—  1,064,000 

—  224,000 

—  116,000 

—  56.433 

—  246,000 

—  252,508 

—  392,000 
—£128,600 

—  £1,950 

—  £i,ico 

—  905,000 
+  135,000 

—  77,000 

—  449,000 
i—  408,600 

—  216,521 

—  170.000 
+  1,112,000 

[ —  15,000 
186,000 
69,000 

—  135.000 

—  126,000 

— 3,i8(,ooo 
+  133.000 
+  61,000 
+  671,000 
+  1,163,000 

—  668,000 

—  134,000 


Dols. 

44,686,000 

8,260,000 

28,797,000 

3,269,800 

42,635,00c 

11.663,000 

22,230,000 

29,640,000 

4.556,000 

24,916,000 

17,285,000 

4,875,000 

671.275 

5,491,000 

2,237,824 

/•9«340,ooo 

1.907,300 

£35.450 

£67,700 

19,880,000 

16,073,000 

3,756,000 

10,483,000 

15,653,000 

4,422,193 

6,429,000 

7.735.000 

42,110,000 

18,128,000 

2,019,000 

16,57^^.000 

24,582.000 

86,440,000 
7,264,000 
6,113,000 
9,324,000 
51,112,000 
39,694.000 
10,269,000 


Dols. 

—  1,488,000 
+     537.000 

—  2, 260,00a 

—  2,202,500 
2,820,000 

—  1,262,000 
3,023,000 

—  1,925.000 
942,000 

—  5,017,000 

—  2,201,000 
4-      603,000 

—  l8c,I21 

— 1,130,000 

1,324.514 

—  6,270,000 

—  £627,900 

—  £362,400 

—  £99-900 

—  3,187,000 
+  2,999.000 
+     583.000 

—  1,657,000 

—  658,000 

—  2,460,286 
+  2.174,000 

+  2,24I,»00 

— 11593.00* 
1,057.000 

—  45,o« 
8,375,000 

—  156,000 

— 16400,000 
+  1,447.000 

+  304,000 
+  1,748,000 
+  8,293.o»» 

—  2,312,000 

—  i66,oeo 


5  Includes  Wisconsin  Central.    ♦  Gross  earnings,    t  Surplus.    6  Deficit. 


'  Months.         t  July  !• 


t  Jan.  X.       c  From  Oct.  r. 


DON'T    CASH   YOUR 
VICTORY  LOAN  DIVIDEND. 

£2  10s.  Dividend  will  double  your 
holding  of  War  Stock  and  produce 
£100  new  money  for  the  War. 
Write  for  particulars  to  Prudential 
Assurance  Co..  Ltd..  142.  Holborn 
Bars.  E.C.I,  or  to  any  of  its  Agents. 


I02 


XTbe  investors'  TReview. 


January  26,    1918. 


LONDON  PROVINCIAL 


AND 


SOUTH  WESTERN  BANK 


LTD. 


AUTHORISED    CAPITAL 
SUBSCRIBED    CAPITAL 
PAID-UP    CAPITAL 
RESERVE     FUND 
DEPOSITS      .         .         ■        - 


£7,500,000 
£4,250,000 
£2,125,000 
£3,000,000 
£75,000,000 


DIRECTORS: 


Sir  JOHN  H.  BETHELL,  Bart.,  M.P. 

ARTHUR  BILBROUGH,  Esq. 

JOHN  WOODROW  CROSS,  Esq. 

Sir  J.  FORTESCUE  FLANNfiRY,   Bart., 

EDWIN  HENRY  GALSWORTHY,   Esq. 

Lt.-Col.  ALFRED   GILBF.Y. 


M.P. 


Sir  HERBERT  HAMBLING. 

The  Rt.  Hon.  Lord  CL/\UD  HAMILTON,  M.P. 

H.  TYLSTON   HODGSON,  Esq. 

WM.  EDGAR  NICHOLLS,  Esq. 

The  Rt.  Hon.  The  VISCOUNT  PEEL. 

Sir  JOSEPH  SAVORY,  Bart. 


General  Manager Sir  HERBERT  HAMBLING. 

Deputy  General  Manager...     WILLIAM  CARRUTHERS. 


Assistant  General  Managers 


(WILLIAM  JOHN  STOKOE, 
FREDERICK  STRAKER. 


Head  Office:  1  70,  FENCHURCH  STREET,  LONDON,  E.C.3. 

Registered  Office:     3,  BANK    BUILDINGS,  LOTHBURY,  E.C.2. 

Foreign  Branch  i     168,  FENCHURCH   STREET,  E.C.3. 

The  Bank  issues  Drafts  and  Letters  of  Credit  on  M  the  Principal  Towns  of  the  World,  also  Travellers'  Cheques 
payable  at  all  the  Chief  Cities  Abroad,  Effects  Mail  and  Telegraphic  Transfers,  Undertakes  Foreign  Collections,  Establishes 
Documentary  Credits,  and  generally  conducts  any  form  of  Foreign  Bankinfj  Business. 

Special   Facilitie*  are  offered  in  FRANCE  through  the  Bank's  French  subsidiary,  COX  &  COMPANY  (FRANCE)   LTD. 
and  in  ITALY  through  the  arrangement*  made  with  the  BANCA  ITALIANA  DI  SCONTO. 

THE  BANK  HAS  OVER  560  BRANCHES  IN  ENGLAND  AND  WALES. 


THE    UNION    BANK    OF   MANCHESTER,    LIMITED. 

ESTABLISHED    2nd     MAY,    1836. 

NOMINAL  CAPITAL        £2,500,000  I  PAID-UP  CAPITAL  £550,000 

SUBSCRIBED  CAPITAL  ..         ..  1,250,000  |  RESERVE   FUND 355,000 

BOARD  OF  DIRECTORS.— LiKUT.-Coi..  The  Right  Hon.  Lord  Rocbdale,  Chairman ;   G.  C.  Hawobth,  Esq.,  Deputy  Chairman ;     J.  R.  OuvKa,  Esq.; 

HicaAELCABABt,  Esq.;    Allan  H.  Brioht,  Esq.;    Sir  Joseph  Verdin,    Bart.,  D.L.;    Chahlf.s    Hardy,  Esq.;    P.  Fobbrsteb,   Esq.  (Managing  Director). 

HALIFAX   DISTRICT    LOCAL    BOARD.  — Ebocb    Hnx,    Esq.    (Halifax):    H.    C.    Lonoshon,  Esq.   {Keighley);    Thoma-i  Wbitblkv,   Enq.   {Bradford); 

William  M.  Orat,  Esq.,  F.C.A.  {Bradford) ;    William  Rajibdek,  Esq.  {Hudrttrtptld]. 

Managing  Director:    P.  Forbsstib. 
Head  Office:    YORK    STREET,    MANCHESTER. 


DB. 


BALANCE  SHEET,  list  DECEMBER,  1917. 


OR. 


To  Capital 550,000 

Reserve  Fund        355,000 

Current,  Deposit,  and  other  Accounts        11,127,088 

Bills   Accepted   by   the  Bank  on  account  of  His  Majesty's 

Treasurj  and  of  Customers  

Open  Credits,  Foreign  Bills  negotiated,  etc.,  as  per  Contra  . . 

▲mount  of  DiTidend  parable  21st  January,  1918. .  £50,000  0  0 

Lm  Income  Tax  at  5s,  in  the  £ 12,500  0  0 


591,513  14 
310,140    5 


£       s    d 

By  Cash  on  Hand,  Call,  etc 1,715,030  11    6 


British  Government  Treasury  Bills 
British  Government  Securities 
Other  Investments 
Bills  of  Exchange 


2,150,000    0    0 

1.678,630    8    9 

197,549  15  11 

955,205    8    0 


Baltno*  of  Profit  and  Loss  Aeooant 


-       37,500      0    0 

40,447  17    2 

£13,011,689  IS    7 


£o,696,416    4    2 

.    4,645,019  19  10 

468  599  16    2 


i 


All  Saints— 137  Oxford  road 
▲idsriok— 8  Aidwlck  green 
Blackley— 9  &  11  Rochdale  road 
Brouf  hton  Bridge — 2a  Lr  Brou^hton  rd 
Campfleld— 314  Deansgate 
OhMtham  Hill— 567  Cheetham  Hill  rd 


BRANCHES    IN     MANCHESTER    AND    8ALF0RD. 


Advances  to  Customers 

Loans  to  take  up  5  %  War  Loan,  and  National  War  Bondn  . 
Liability  of  His  Majesty's    Treasury  and  of  Customers  for 

Bills  Accepted  by  the  Bank  591,513  14     3 

Open  Credits,  etc.,  as  per  Contra 310,140    5    2 

Bank  Premises  at  cost,  Isw  depreciation  f nnds 300,000    0    0 

£13,011^689  W  "7 


Com  Exchange-66Corporation  street 
Deansgate — 166  Deansgate 
Didsbury— 87  Wilmslow  road 
Irlamso'-th'-Height— 371  Bolton  road 
Pendlebury— 487  Bolton  rosd 
Piccadilly— 10  Piccadilly 


Royal  Exchange— 11  St.  Mary's  gate 
St  Peter's— 2  Oxford  street 
Salford— 280  Chapel  street 
Salford  Docks— 172  Traflord  road 
Beedleyand  Weaste — 138EcclesNew  rd 
Btrangeways — 12  Bury  New  road 


Swan  street — SO  Swan  street 
Weaste— (See  Seedley) 
West  Gorton— 49  Hyde  road 
Whitworth  street-67 
Withington— 85  Wilnislovr  road 


I.IVERPOOL  BRANCH  :    <6  Castle  street. 

OTHER   BRANCHES  IN   LANCASHIRE   AND  CHESHIRE. 


Aoorington 

Bredbnry  (see  Wood 

Gars  ton 

Leigh 
LitUeborough 

PatricrDft 

Stoneclough    and 

AldarleT  Edge 
Altrlncham  t  Bowdon 
Ansdell  A  Fairhaven 

ley) 

Great  Harwood  (open 

Fenketh 

Kearsley 

Brierfteld 

shortly) 

Lymm 

Middleton 

Middlewioh 

Prestwich 

Rju^rlifTA 

Styal 

Bommit 

Tyldesley 

Ashton-in-Makerfleld 

Burnley 

Heatley     and     War- 

Bawtenstall 

▲shton-under-Lyue 

Burnley,  Colne  road 

Beaviley 

Mossley 
Nantwich 

Reddish 

Warburton 

Astiey 

Bury 

Heywood 
Hollinwood 

Rochdale 

(see  Heatlej) 
Warrington     " 

Aadlem 

Chester  (open  shortly) 

Nelson 

Romiley 

Baonp  (open  shortly) 

Ohuroh  and 

Holmes  Chapel 

Norden 

Royton 

Whitworth 

Black  bom 

Oswaldtwistlo 

Horwich 

Northwich 

St.  Annes-on-Sea 

Wigan 

Blaokpool 

Colne    . 

Kearsley    (see 

Northwich.Station  rd 

St.  Helens 

Wilmslow 

Bolton 

Fairharen  (see   Ani- 

Stoneclough) 

Oldham 

Shaw 

Winstord 

Bootbstown          [bam) 

*•"' 

Knatetord 

0:,waldtwistle 

Bonthport 

Woodlev    and 

Bowdon    (see    Altrine- 

Famworth 

Lees 

BRANCHES  IN 

(see  Chnroh) 
YORKSHIRE. 

Stockport 

Bredbnrr 

Bradford— 13  Market  stri 

>et. 

HcDDiRsriELD— 37  John  \ 

'illiam  street. 

[dEDs- Standard  Bnildi 

Dgs,  City  square  (Comer 

Do.      — St.  James*  mi 

krkets. 

KEIOBI.RY— 42  North  stree 

. 

of  Park  row). 

HALirAX~45  and  47  Commercial  street. 

London  Aoents  :  Qlyn,  Mills,  Cvbbik  &  C 

Foreign  Business  of  every  description  transacted, 
telegraphic  Transfers  of  funds  made  to  all  parts  of  the  worliT. 

8a VINOS  DxrABTictNT.— Accounts  may  be  opened  with  £1  and  upwards.    Full  particulars  on  applieation,    No  notice  for  withdrawals.     Important  doeameats 
taken  eharg e  el  tree.    War  Saving  Certificates  and  National  War  Bonds  issued. 


I      SBKFriELD— 102  Norfolk  street. 
The  Bank  has  Agents  everywhere  in  Great  Britain  and  throughout  the  World. 
Forei^  Bills  and  Coupons  collected  or  negotiated.    All  kinds  of  Foreign  Notes  and  Coin  bought  and  sold 


January  26,   1918. 


^be  investors*  1ftev>iew> 


i»3 


THE  LONDON   JOINT  STOCK   BANK,  LIMITED. 


(BSTABLISHED    1836.) 


Capital  Subscribed 
Capital  Paid-up 
Reserve  Fund 


£19,800,000 
£2,970,000 
£1 ,325,000 


WILLIAM  BENNETT,  Esq. 
WILLIAM  T.  BRAND,  Esq. 
WALTER  8.  M.  BURNS,  Esq. 
STANLEY  CHRISTOPMEESON,  Esq. 
Bight  Hon.  The  EARL  OF  DENBIGH,  C.V.O. 


DIRECTORS. 

ALEXANDER  H.  GOSCHEN,  Esq. 
CHARLES  OOW,  Esq. 
JOHN  RICHARD  HILL,  Esq. 
CHARLES  E.  JOHNSTON,  Esq. 
CHARLES  THOMAS  MILBURN,  Esq. 


E.  M.  RODOCANACHI,  Esq. 
Sir  EDWARD  D.  STERN,  D.L. 
EDMUND  R.  TURTON,  Esq.,  M.P. 
LEWIS  H.  WALTERS,  Esq, 
SIR  DAVID  YULE. 


Head     Office:      5     PRINCES     STREET,     LONDON,     E.C.2. 
Tha  Bank  has  31 0  Metropolitan  anil  Country  Branchaa    and  Sub-Branohaa. 


BAIiANCE    SHEET,   Slat   DECEMBER,   1817. 


To  Capital  Authorised—  LIABILITIES.     £  t   d 

200,000  Shares  ot  £100  each       . .         . .    20,000,000    0    0 
„    Capital  Issued —  '  '   ' 

198,000  Shares  on  which  £15  per  Share  has  been  called 

and  paid  

„    Reserve  Fund  

„   Amount  due  by  the  Bank  on  Current,  Deposit,  and  other 

Aooounta 

„    Aceeptances  on  account  of  Customers 

„   Rebate   on  Bills  not  yet   due  

„  Amount  of  Net  Profit  for  the  Year  ended 
31st  December,  including  £50,323  18s  7d 
balance  of  Profit  and  Loss  Account,  3l9t 

December,  1916 662,428    B  6 

Less  Interim  Dividend 148,900 

„      to  Reserve  Fund 200,000 

,,      to  Superannuation  Fund  . .         20,000 

„      in  Reduction  of  Premises  Account      20,000 

388,000    0    0 


ASSETS. 


2,970,000 
1,315,000 


07,979,280    3 

2,917,106  1< 

203,096    8 


By  Cash  in  handandatthe  Bank  of  England  11,087,649 
,,  British  Government  Treasury  Bills  .  .18,382,400 
„    Money  at  Call  and  Short  Notica    . .        . .  1,180,398 


31,890,444    a    7 


273,928    6    6 


£68,698,411  11  11 


Invefltments — 
6%  War  Loan,  Exchequer  Bonds,  Na- 
tional War  Bonds  and  other  Secu- 
rities of,  or  guaranteed  by,  the 
British  Government,  of  which 
£24,561  58.  Od.  (Stock)  id  lodged  for 
Public  Accounts         11,161,864  16  11 

Indian,  Colonial  Government  and  other 

Securities 1,983,464    9    2 

13,148,0W    6    1 

Bills  Discounted 1,827,749  16    6 

46,263,223    8    2 

Loans,  Advances,  and  other  Accounts  and  Securities,  in- 
cluding Stock  Exchange  Loans  under  Treasury  Minute 

of  3lBt  October,  1914 18,468,129    0  10 

Liabilitiesof  Customers, &c.,forAoceptance8aspercontra     2,947,106  14    1 
Freehold  and  Leasehold  Premises 1,010,682  1110 


£68,698,411  11  11 


Rkpoki  of  the  AcDiTons  lo  the  Sbamholdehs  or  The  London  Joint  Stock  Bank  Limiied. 

We  have  audited  the  above  Balance  Sheet  dated  the  31st  December,  1917,  and  the  Profit  and  Loss  Account  for  the  year  to  that  date.  The  Accounts  of  the 
Head  Office  in  Princes-street  and  of  the  Branches  within  the  Metropolitan  area  and  district  have  been  examined  by  the  undersigned,  William  Plender  and 
William  Cash,  and  the  Accounts  of  the  Country  Branches  have  been  examined  by  the  undersigned,  William  B.  Peat. 

We  have  obtained  all  the  information  and  explanations  we  have  required,  and,  in  our  opinion,  such  Balance  Sheet  is  properly  drawn  up  so  as  to  exhibit  a 
true  and  correct  view  of  the  state  of  the  Bank's  affairs,  according  to  the  best  of  our  information  and  the  explanations  given  to  us,  and  as  shown  by  the  Books  of 
the  Company  at  the  Head  Office  in  which  the  Returns  from  the  Branches  have  been  incorporated. 

WM.  PLENDER  (Deloitte,  Plender,  GrifBthi  ic  Co.)  ) 

WM.  CASH^(C3sh,  Stone  &  Co.)  ^        Auditors. 


London ;    15th  January,  1918, 


W.  B.  PEAT  (W.  B.  Peat  A  Co.) 


THE  UNCASHIRE  AND  YORKSHIRE  BANK,  LIMITED. 


Xlstabllsliedl    1872. 


CAPITAL:   Authorised,    £4,000,000,    in    200,000    Shares   of  £20    each 
Subscplbed,  £1,725,320;   Paid  up  (£10  per  Share),  £862,660. 

Reserve  Fund,  £580,000. 


Head    OfHce:     43,     SPRING     0ARX>E:NS,    SSAM^CHEiSrrER. 


BALANCE    SHEET,     December    31  »t.     1917. 


Liabilities. 
Capital  paid  up        ...         ...         ...         ...         ... 

Reserve  Fund  

Rebate  Account 

Profit  and  Loss  Account     ...         ^217,700  12     5 
Less  Interim  Dividend 

paid  July,  1917     ...  69.012  16    0 


£ 

862,660  " 

570,000 

30,134 


148,687  16     5 


Current,  Deposit,  and  other  Accounts    

Acceptances,  Endorsements,  and  other  Contingent 

Liabilities       

Notes  in  circulation  in  the  Isle  of  Man 


;fl,611,481  16 

18,045,418  13 

203,990  13 

9,668  0 


;fl9,870,559     3     3 


Assets.  £  s   d 

Cash    in   hand,    and  money   at   call   and    short 

notice...         •"         4,592,590     3     7 

Investments  :     British  Wzir  Securities  (at  cost)  ; 

other      British,     Indian,     and     Colonial 

Government,  Railway,  Corporation,  &c.. 

Securities  at   or  under    market  prices  of 

31st  December,  1917*  4,347,444  11     9 

Bills  of  Exchange  (including  ;f  2,500,000  Treasury 

Bills) 3,587.037  12     7 


5 
9 

/12,527,072     7  11 
1      Advances  on    Current,    War    Loan,    and  other 

Accounts,  Loans*  &c 6,754,496    2     3 

Acceptances,     Endorsements,     and     Contingent 

Liabilities,  as  pej  contra 203,990  13     1 

Bank  Property         385,000    0    0 

*  Including  j^i9,ooo  India  3)  per  Cent.  Stock  lodged 
against  Note  Circulation  In  the  Isle  ot  Man. 


;^19,870,559     3     3 


Report  of  the  Auditor  to  the  Shareholders  of  The  Lancashire  and  Yorkshire  Bank,  Limited. 
1  have  audited  the  above  Balance  Sheet  and  Profit  and  Loss  Account,  and  compared  them  with  the  books  and  vouchers  at  tho 
Head  Office  and  with  the  Certified  Returns  from  the  Branches.  I  have  obtained  all  the  information  and  explanations  I  have 
required.  In  my  opinion  such  Balance  Sheet  is  properly  drawn  up  so  as  to  exhibit  a  true  and  correct  view  of  the  state  of  the  Company's 
affairs  according  to  the  best  of  my  information  and  the  explanations  given  to  me,  and  as  shown  by  the  books  of  the  Company.  I 
have  also  examined  the  securities  representing  the  Investments  of  the  Bank,  and  have  found  them  in  order. 

On  behalf  of  the  Board, 

THOS.  B.  MOXON,    ) 

COLWYN,  \  Directors.  ]KO.    P.  GARNETT.  F.C.A.,  Auditor. 

ALFRED  WATKIN,   J  (David  Smith,  Garnett  &  Co..  Chartered  Account  uts, 

January  Sih,  WIS.  Manchester.) 


m 


tCbe  Jnvestors'  IReview. 


JaxijArv  26,    1918. 


Barclays   Bank  Limited, 

Head   Office:    54,   Lombard   Street,  London,  E.G.  3. 
AUTHORISED    CAPITAL        - £13,500,000. 


CAPITAL    SUBSCRIBED £12,679,440 

In  474,861  "A"  Shares  of  £4  each,  fully  paid.  450,000  "B"  Shares  of  £16  each,  £4  paid,  and 

894,999  "B"  Shares  of  £4  each,  £1  paid. 


Paid-up  Capital 
Reserve    - 


£4,594,443 
£2,200,000 


BOAUI)   OF    DIRBCTORS: 


SBYMOUHPLEYDBLLBOUVEIIIK,  E»<|. 

KUWARD  Ql'RNKY  BUXTON.  K«q. 

OBOFFKKY  FOWKLL  BUXTON,  Bsq. 

Sir  OILBEKT  HENKY  CLAUOHTON,  Bart. 

FKBUBKICK  GBOIIOE  lllJO}!  CLAYTON.  Esq. 

CHAULBS  HKNUY  DENT,  Esq. 

KUNEST  IIALHU  DODSWORTH,  Esq. 

HBKBKKT  UOSLING,  Esq. 

WALTER  SO.MKItVILLB  OUKNKY,  Esq. 

Sir  JOHN  COCSIN  HORSFALL,  Ban. 

Tar.  LORD  KINNAIRD,  K.T. 


PRBDBRICKCRAUFURDaOODENOUOH.Esq., 
Cbatrman. 

COSMO  BEVAN,  Esq.,  VIeeChairman. 

BDMUMD   HENRY   PARKER,   Esq.,  Viiw-Chair- 
m«n. 

HUQH  OURNBY  BARCLAY,  Esq. 

R0BSRT  LEATHAM  IIABCLAY,  Jisq. 

FRANCIS  AUGUSTUS  BEVAN,  Esq. 

HBNHYBIRKBKCK,  Baq. 

THOMAS  ROBINS  BOLITHO,  Esq. 

WILLIAM  EDWARD  THOMAS  BOLITHO,  Esq. 

WILLIAM  FAVILL  TUBE,  Esq..  General  Manager.  KDWIN  FISHER.  Esq..  SecreUry 

WILLIAM  XORMAN  SKKLRY.  Esq..  BVBLYX  COOPK  RUGGLES-BRISB.  Esq.,  Assistant  Secretaries. 


GEORGE  .MACPHERSON,  Esq. 

JOHN  EDWARD  .MOUNSBY,  Ifaq. 

HUGH  EXTON  SEKBOHM,  Kkj. 

Sir  JA.VIKS  S.MITll. 

HAROLD  EDWARD  SNAGGE,  B»q. 

PKRCYTEW,  Esq. 

HKRDKRT  LESLIK  MELVILLE  TRITTON,  B»|. 

JOSKPII  HBKBEUT  TRITTON,  Esq. 

FRANCIS  BARKY  WHITFELD,  Esq. 

CECIL  MflltCER  WOODDRIDGE,  Esq. 


Dr. 


Drawing  and  Deilosit  Accounts  openml  at  any  of  the  Brandies,  acconiing  to  the  usual  custom  of  Bankers. 

Payments  may  l>e  made  through  any  Branch  of  tlie  Bank  to  the  credit  of  Custotners'  Accounts  at  any  other  Branch. 

Orders  for  the  Purchase  or  Sale  of  Stocks,  Shares,  Ac,  executed  through  the  BauIc's  Brokers  or  through  Brokers  selected  by  Customers. 

Dividends,  Pensions,  and  Annuities  received  for  Cust-omers  of  the  Bant<. 

The  Bank  undertakes  all  classes  of  Foreign  Business,  including  the  collection  of  Foreign  Bills,  and  the  remittance  of  moneys  abroad. 

Circnlar  Notes,  Circular  Letters  of  Credit  and  Fixed  Letters  of  Credit  issued  payable  in  the  principal  Cities  and  Towns  of  the  world. 

The  Bank  undertakes  the  ofliiie  of  Executor  and  Trustee  on  terras,  particulars  of  which  may  be  obtained  at  Head  Office  and  Br.inches. 

BALANCE    SHEET.  3l8t   December,   1917. 


Cr. 


LIABILITIES. 
To  Oarrent,  Peposil  and  other  Acconnts  (including  balance 

Of  Profli  and  Loss)       

„    Aeoeptancea  and  Endorsements  for  acoonnt  of  . . 
Customers 


474,861  A  Shares  of  £4 
each,  fully  paid 
- "       450,0C0  B  Shares  of  £16 
each,  £4  paid 

894,999  B  Shares  of  £4 
each,  £1  paid 


£         •.  d. 
1,899,444    0    0 


1,800,000    0    0 
894,999    0    0 


ia9,0«7,90l  1*    1 
2,1»,13«  IS  11 


Reaerre  Fund 


<,C9I,(I3 
9,200,000 


0    0 


£138,013.481    •    0 


ASSETS. 
By   Cash   in  hand,   and   with  the  Bank  of  England  . . 

,,       Money  at  Call  and  Short  Notice       

„       Balances  with  other  British  Banki  and  Cheqaea  in 

course  of  collection 

„       Bills  Discounted 

„    Intzbtukntr —  £         B.  d. 

(Including  £400,730  9s.  93.  Securities 
lodged  for  County  and  other  Public 

Accounts)  

British  Government   Seenrities  and 

Bank  Stock        21,618,254    5    0 

British  Corporation  A  Public  Boards 

Stocks  and  Bonds        466,085  10    2 

Indian     and     Colonial     Government 
Securities,    including     Guaranteed 

RaUwavs 2,416,240  13    0 

British  Railway  Debenture  Guaran- 
teed and  Preference  Stocks. .         . .  781,311    6    8 
Other     Securities    (including    31,250 
Shares  of  £5  each,  £3  paid,  in  the 
Yorkshire  Penny  Bank,  Ltd.)         . .         984,386    5    2 

„  Advances  to  Customers  and  Other  Accounts  ( including 
Loans  to  Stockbrokers  under  Treasury  Minute  of 
31st  October,  1914)       

„  Liability  for  Acceptances  and  Endorsements  (  per  con- 
tra)  

„       Bank  Premises  and  adjoining  Properties 


£  8.  d. 

:4.89«,8W  9  10 

8,929,400  0  0 

l,29t,S83  t  ( 

M,089,0«a  i  1 


a6,IM,878    «    I 


M,  201 ,141  IS    8 

1,M1,1M  IS  11 
t,<08,Sll    S  U 

£I3S,0IS,«8I    9    0 


Dr. 


PROFIT    AND    LOSS    ACCOUNT. 


Cr. 


£         I.  d. 

To  Salaries  and  other  Expenses  at  Head  Office  and  Branches, 

including  Income  Tax  and  Staff  Bonus       1,SBB,989    3    0 

„  Directors'  Remuneration 24,098    7    S 

„  Reduction  of  Premises  and  payment  for  Buildings  . .        . .  80,000    0    0 

„  Keserre  for  Staff  Pensions 40,000    0    I 

„  Contingency  Account 880,000    0    0 

,,  Staff  widows' Fund 100,000    0    0 

Interim  Dividend  of  4/-  per  Share  on  A  Shares,  7/-  per 
Share  on  B  Shares,  £4  paid,  and  1/9  per  Share  on  B 

Shares,  £1  paid,  less  Income  Tax 2*8,088    9    S 

„  Final  Dividend  of  4/-  per  Share  on  A  Shares,  7/-  per  Share 
on  B  Shares,  £4  paid,  and  1/9  per  Share  on  B  Shares, 

£1  paid,  less  Inaome  Tax 248,088    9    9 

„  Bonus  of  2/-  par  Share  on  450,000  B  Shares,  £4  paid,  and 
■16  per  Share  on  894,999  B  Shares,  £1  paid,  lest  Income 

Taxineaohoase    ..  H,SS1    4    S 

tn'Salance,   being    Undiridad   Profit,    earried  forward    to 

nax*  year 18(,STS    7    S 

£»,«83.ia9    0  11 


By  Profit  unappropriated  on  1st  January,  1917 

,,  Gross  Profit,  full  Provision  having  been  made  for  Rebate 


£ 
120,938 


1-  i. 
9    • 


and  for  Bad  and  Doubtful  Debts 


I,U2,100  11  IL 


£1,8U,I89    0  II 


P.  O.  GOODENOUGH,  Chairman.  COSMO  BEVAN,  1        Vloe- 

W.  FAVILL  TUBE,  General  Manager.  EDMUND  H.  PARKER,  f  Chairmen. 

K.  B.  WILSON,  Chief  Accountant.  F.  G.  H.  CLAYTON,  Director. 

AUDITORS'  REPORT. 
We  have  compared  the  above  Balance  Sheet  with  the  Balances  on  the  Books  at  the  Head  Office,  and  with  the  deuiled  Returns  from  the  Branches.  We 
have  verified  the  Cash  at  the  Lombard  Street  Office  and  at  the  Bank  of  England,  and  the  Investments  of  the  Bank,  as  well  as  the  Securities  held  against  Money 
at  Call  and  Short  Notice,  and  having  obtained  all  the  information  and  explanations  we  have  required,  we  are  of  opinion  that  the  above  Balance  Sheet  is  properly 
4rawn  up  so  as  to  exhibit  a  true  and  correct  view  of  the  state  of  the  Company's  affairs  according  to  the  best  of  our  information  and  the  explanations  given  lo  na 
and  as  shown  by  the  Books  and  Returns  of  the  Ompany.    War  Loan  Stocks  are  taken  at  net  cost,  and  the  remaining  Investments  at  Market  Value. 


London,  12th  January,  1911. 


KEMP,  SONS.  BKNDELL  A  CO.     1 
PRICE.  WATF.RHOUSE  A  CO.      i 


Anditon. 


Printed  by  the  St.  Ci.xmrkts  PRrsa,  Ltd..  Portugal  Street,  Kingswav.  London,  W.C,  for  the  Proprietor  of   I  he  Isvestors'  Rf.\tf«-.  and  Publiibed 
by  The  P«dprietof.  Norfolk  House.  .Norlolk  Street.  Strand,  W,C.  l.— January  j6,  1918.  [N  1963 


XTbc 


Jnveetore'  1Revf  ew 


FOUNDED    BY    A.     tt.     WILSON,     FEBRUARY,     1892. 


Vol.XLI.— No.  1,048] 

NEW  SERIES. 


rR«glatered  as  a"] 
L    Newspaper.    J 


SATURDAY,  FEB.  2,   1918. 


[Price  6d. 


CONTENTS. 


Passing  Events: — National  War  Bond  Sales  —  Revenue  — 
National  Expenditure  —  Conscription  of  Capital  —  Chaos 
in  Russia  —  Lloyds  Bank  —  Capital  and  Counties  Bank  — 
Martin's  Bank  —  Canadian  Bank  of  Commerce  — 
Clydesdale  Bank  —  Gas  Light  and  Coke  Co.  —  Great 
Eastern  Railway  Co.  —  Ferreira  Deep  —  Great  Northern 
Railway  —  A.  and  S.  Henry  —  Falcon  Mines  (pp. 
107-10). 

Leading  Articles : — The  Banking  Year  and  Points  from  Bank 
Chairmen's  Speeches  —  By-the-Way  War  Notes  —  Another 
Big  Bank  Amalgamation  —  Italian  News  (pp.  110-16,  p.  123 
and  p.  125). 

American  Business  Notes  : — Poor  American  Wheat  Harvest  — 
Short  Supply  and  Increased  Demand  for  Foods  —  Estimated 
Value  of  United  States  Crops  (p.  116). 

Insurance  News  : — Particulars  of  London  and  British  Law  Fire 
Fusion  —  Suggested  Increase  in  Fire  Rates  —  Colonial 
Mutual  Fire  (p.   118). 

Dividends  Announced  (p.  118). 
The  Week's  Stock  Markets  (pp.  122-3). 
London  Produce  Markets  (pp.  123-4). 


Money  and  Credit  Notes  : — Money  in  Better  Demand  —  Bank 
Return  —  New  South  Wales  Big  Loan  —  Five-Shilling 
Treasury  Notes — Russian  Treasury  Bills  Again — Paraguay 
Resumes  Payment  —  Exchange  Fluctuations  —  Italian  Loan 
Subocriptions —  Silver  (pp.    120-2). 

Mining  News  : — Ashanti  Goldfields  Corporation  —  Springs  Mines 
—  West  African  Gold  Output  (p.  125). 

What  Balance  Sheets  Tell : — London  and  Blackwall  Railway 
Co.  —  East  Indian  Railway  Co.  —  Dublin  United  Tramways 
Co.  (1896)  —  Edinburgh  and  District  Tramways  Co.  — 
Melbourne  Electric  Supply  Co.  —  Adelaide  Electric  Supply 
Co.  —  Wm.  HoUins  and  Co.  —  Mclntyre.  Hogg,  Marsh 
and  Co.  —  London  Produce  Clearing-House  —  Public 
Benefit  Boot  Co.  —  Imperial  Tobacco  Co.  of  Canada  — 
United  Tobacco  Companies  —  Brentford  Gas  Co.  (p.  126). 

Company  Meetings : — Union  of  London  and  Smiths  Bank  — 
■The  Bradford  District  Bank  —  Union  Bank  of  Australia  — 
Lennards  (Boots  and  Shoes)  —  Dunlop  Rubber  — 
Johannesburg  Consolidated  Investment  Co.  (pp.  127-33). 

The  Week  in  Mines  (pp.  124-5). 

Traffic  Returns  (p.   135). 

Answers  to  Correspondents  (p.   135). 


NATIONAL  PROVINCIAL  BANK 
OF    ENGLAND,     LIMITED. 


ESTABLISHED  IN   1833. 
SUBSCRIBED    CAPITAL        -        £1B,»00,000. 

-Paid,  £3,000,000  ;   Uncalled,   iB2,300,000  ; 
Reserve  Liability,  £10,600,000. 
RESERVE  FUND  (Invested  in    English   Government  Securities), 
£2,100.000. 

DIRECTORS. 

Col.  Sir  CLAUDE  V.  E.  LAURIE, 
Bart.,  C.B.,  D.S.O. 

The   Rt.   Hon.  The  EARL   OF 
LICHFIELD. 

F.  C.  LE  MARCHANT   Esq. 

G.  F.  MALCOLMSON,  Esq. 
SELWYN  R.  PRYOR.  Esq. 
ROBERT  WIGRAM,  Esq. 

Joint  General  Managers. 
D.  J.  H.  CUNNICK,  Esq.,  F.  KLEY.  Esq.,  and  A.  G.  HOPEWELL,  Esq. 

HEAD    OFFICE  i     15,     BISHOPSGATE,  E.G.  2. 

French     Auxiliary — 
LLOYDS  BANK  (France)  and  NATIONAL  PROVINCIAL  BANK  (France),   LTD. 


CAPITAL- 


C.    F.    CAMPBELL,  Esq. 
MAURICEO,  FITZGERALD.Esq. 
CHARLES  R.  GILLIAT,  Esq. 
W.  H.  N.  GOSCHEN,  Esq. 
The  Rt.  Hon.  LORD  INCHCAPE, 

G.C.M.G.,  K.Ci.I..  K.C.I.E. 
FRANCIS  A.  JOHNSTON,  Esq. 


THE  COMMERCIAL  BANK  OF  LONDON. 

LIMITED. 

Chairman— The  Right  Hon.  SIR  CHARLES   HOBHOUSE,    BART., 

P.C,  M.P. 
CURRENT  ACCOUNTS  opened,  and   every  description   of   Banking 

bu-iness  transacted.     Bills  discounted,   and  advances  made   to 

customets  on  approved  secur  ty. 
SPECIAL    FACILITIES     GRANTED    TO    COMMERCIAL    AND 

INDUSTRIAL  UNDERTAKINGS. 
THE  PURCHASE  AND  SALE  OF  SECURITIES  undertaken,  also 

the  receipt  of  dividends. 

COUPONS  AND  DRAWN  BONDS  negotiated. 
DEPOSITS  received  at  call,  or  for  hied  periods,  at  rates  which  may 

be  ascertained  on  appliciTtion. 
^'  Austin  Friars,  London,  E.C.  i.  ARTHUR  H.  KING,  Manager. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated  by   the   Special   Charter  of  the   Imperial 
Japanese  Government,  1899. 

-      TAIPEH,   FORMOSA. 


HEAD   OFFICE 


BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  38,  OLD  BROAD  ST.,  E.C.  2. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

Registered  in  Japan.) 
ESTABLISHED    1B80. 

SubBOPlbed  Capital        Ten  48,000,000 

Capital  Paid  Up Vea  36,000,000 

Reserve  Fund         ..        ..  ..    Yen  22,100,000 

Head  Office :   YOKOHAMA. 
Branches  and  Agencies  at 
Bombay.  Honolulu,  New  York.  Singapoce. 

Calcutta,  Hong  Kong,  Osaka.  Sydnej. 

Changchun.  Kobe.  Peking.  Tient«n. 

Dairen  (Dalny).  Los  Angeles.  Rangoon.  Tokyo. 

Fengtien  (Mukden).       Lyons.  San  Francisco.  Tsinanfn. 

Hankovf.  Nagasaki.  Seattle.  Tsingtau. 

Harbin.  Newchang.  Shanghai. 

The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  tranbacts  General  Banking  Business. 
Deposits  receivedfor  fined  periods  at  rates  to  be  obtained  on  applicaticn. 
London  Office:  7,  BISHOPSGATE.  E.C. 3. 

K.  TATSUMl,  Mwager. 


HONGKONG   AND    SHANGHAI    BANKING    CORPORATION. 

Capital  (all  paid  up) $18  (XW  000 

Sterling  Resepve,  held  in  London  at  exchange  of  2s.  per  8  =  £1,800,000           ..       '.'.        '.'.    $18,000,000         '      ' 
Silver  Reserve $18,800,000    «S3,800,000 

Reserve  Liability  of  Proprietors $18,000  000 

^^f^O    OFFICE-HONGKONG.    Chief  Manager-N.    J.    STABB. 
Inoh    I„w„     if„l,r  ,  J'    AGENCIES :- Amoy,    Bangkok,  Batavia,  Bombay,  Calcutta,  Canton,   Colombo,   Foochow,  Hankow,  Harbin,    Hon<[kew    (Shanghar, 
■«^n'.i^iT'„  (Hiogo)     Kuala   Lumpi^,    London.  Lyons,    Malacca,  Manila,  Nagasaki,  New  York,   Peking,   Penang,  Rangoon,  Saigon,  .San   F^isc.. 

Wiaoghai,  Smgapore,  Sourabaya,  Tientsin,  Tsingtao,  Yloilo,  Yokohama.  •        o  .  .  e.      <-..u.6,  n>u«wu,  o-^guu,  .^>-i      i.u..i=..  , 

L,ONDON  COHMITTEE  * 
HENRY  KESWICK,  Esq.,  M.P.  \  WM.  GAIR  RATHBONE,  Esq,  |  '  J.  R.  M.  SMITH,  Esq,  -  A.  M.  TOWNSBND,  B» 

I  r^.,. _  ,  „„  SIR  CHARLES   ADDIS,  \  „,„,„„,,,„  r  „„.„„  JOHN  MacLENNAN,  Sub-Manage 

!  GaACBcnuRCH  Strsst,  London,  E.C.  3.  H.  D.  C.  30NBS,  |  Managers  lu  London.  W.  \i.  BLACKIE,  Accountant. 

li 


io6 


XTbe  investors'  IRevtew. 


February  2,  1918. 


BANKS. 


CHARTERED  BANK  OF  INDIA, 
AUSTRALIA,  AND  CHINA, 

38,  Bishopsgate,    London,  E.G.  2. 

Incorporated  by  Royal  Charter. 


Capital,  £1,200,000.     Reserve  Fund,  £1,900,000. 


Court  of  Directors. 


SIR  MONTAGU  CORNISH 

TURNER,  Chairman. 
SIR    HENRY    S.    CUNNINGHAM, 

K.C.I.E. 
THOMAS  CUTHBERTSON,  E»q. 
SIR  ALFRED  DENT,  K.C.M.G. 

Managers:  T.  H.  WHITEHEAD  and  W.  E.  PRESTON. 
Sub-Manager:  J.  S.  BRUCE. 


WILLIAM       HENRY       NEVILLE 

GOSCHEN,  Esq. 
TliK    Right    Hon.   LORD  GEORGE 

HAMILTON,  G.C.S.I. 
WILLIAM  FOOT  MITCHELL, 

Esq. 

LEWIS   ALEXANDER  WALLACE, 

[Esq. 


BANKS. 


Bankers : 

THE    BANK    OF    ENQLANI). 

THE    LONDON    CITV    AND    MIDLAND    BANK,    Limited. 

THE    LONDON  COUNTY  &  WESTMINSTER    B\NK.    Limited. 

THE    N»TION  .L    PROVINCIAL    B»NK   OF   HNQUND.    Limited. 

THE    NATIONAL    BANK    OF   SCOTLAND,    Limited. 

The  Corporation  buy  and  receive  for  colleclion   Bills  of  Exchange,   grant 
Drafts  and  transact  general  banking  business  connected  with  the  East. 

DEPOSITS  OP  MONEY  are  received  for  fixed  periods  on  terms  which 

may  be    ascertained  on   application.       Interest  payable    half-yearly, 

30th  June  and  31st  December. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital  £4,000  000 

Paid-up  Capital  1,800,000 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendoia,  Concordia,  Babia 
Blanca,  Cordoba.  Tucumkn,  Parana,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires  Boca  (Buenos  Aires),  Calle  Sania  Fi  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires)  URUGUAY.— .Viontevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Ageocv),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro.  Sao  Paulo,  Santos,  Per- 
nambuco,  Fara,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (i6  Rue  Hal^vy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


FARROW'S  BANK 

Incorporated  under  the  J  otnt  Stock  Companies  Acti.  LIMITED 

Authorised    Capital.   £1,000.000.  Sharei   Usued,  700.000. 

Shareliolders,  4,000- 

Chairman     .       -       .       -  Mr.  Thomas  Farrow. 


EVERY   DESCRIPTION    OF   JOINT 
STOCK  BANKING  TRANSACTED. 

CURRENT    ACCOUNTS    opened     and    interest    paid    where 

approvf-d  Credit  Balances  are  maintained. 
DEPOSIT    ACCOUNTS.    Interest  paid  according  to  notice  of 
withdrawal. 

Write  or  call  for  Special  BooKlet  to 
HEAD    OFFICE: 

1,  CHEAPSIDE,  LONDON,  E.C. 2. 

13  Brunches  throughout  the  United  Kingdom.  a.h.*co 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  1880. 

Authorised  and  Issued  Capital,  £6,000,000. 

Paid-up  Capital,  £2,000,000;  Reserve  Fund,  £2,000,000;  together   £4,003,000 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OFFICE   -        -        -        71 ,  CORNHILL,  LONDON,   E.O.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Austraiian 
States  and  Domini^n  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DKPO  -ITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
on  application. 


UNION      BANK     OF     CANADA. 

IRCORPORATED   l86j.  H«AD  OFFICE  :  WINNIPEG. 

PAID-UP  CAPITAL jg.ooo.ooo 

REST   AND    UNDIVIDED    PROFITS  ..        ..  $3,600,000 

TOTAL   ASSETS    EXCEED  » 143,000,000 

The  Bank  has  over  300  Branches  in  Canada,  and  Agents  In  the  principal 

cities  in  Amerioa.       General  Bankinq  Bt;siNES5  Condi;ctsd. 

Deposits  Rooelwod  for  fixed  periods  at  favourable  rates,  which  may  b« 

ascertained  on  application  to 

London  Offioes  :  S,  PRINCES  STREET.  E.C  I,  sod  28.  HAYM^IKIT,  S.W.  1 
Now  Topk  Atonoy :  49.  Wall  Street 


CAMTADA. 


THE    BANK    OF 
BRITISH    NORTH    AMERICA. 


Established  1836. 


INCORPORATEO  by  ROTAL  CHARTER  1IM. 


RESERVE  FI;ND 


£620.000. 


PAID-UP  CAPITAL    ..     £1,000,000. 

Head  Office:-},  GRACECHURCH  STREET,  LONDON,  E.CT 
Court  of  Directors. 
Lt.-Col.F.  R.S.BALFOUR.  Lieut.  E.GEOFFREY  Hon.A.R.  MILLS.  M  P. 
J.  H.  BRODIE.                           HOARE,R.N.V.K.     MajorC.  W.TOMKINSON. 
J.  H.MAYNK  CAMPBELL.  F.  LUBBOCK.  G.    D.   WHATMAN. 

E.  A.  HOARE.  

Deposits  received  at  rates  which  may  be  obtained  on  aoplication. 

Current  Accounts  opened. 
Coupons  purchased. 

ALL    KINDS   OF    BANKINQ    BUSINESS   TRANSACTED 


INSURANCE. 


ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head  Office:  BARTHOLOMEW  LANE,  LONDON,  E.C.  2. 


ASSETS    EXCEED    £24,000,000. 


Chairman  1 
The    Hon.    N.    CHARLES    ROTHSCHILD. 


The  operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  information  respecting 

ESTATE    DUTY   and 

CHILDREN'S  EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  application 
to  the  Head  Office  as  above, 
OP  to  any  of  the  Offtcas  op 
Agencies   of    the    Company. 

O.  MORGAN  OWEN,  General  Manager. 


A  PRACTICAL  PENSION  POLICY 
FOR    WOMEN    WORKERS. 

"  After    the    heat   and   turmoil   of   the   day. 
The  sheltered   haven  of  the  peaceful  years." 


C( 


A   leaflet   entitled 


AFTER 


II 


giving  full  particulars  of  a  new   and  attractive 
scheme  will  be  sent  post  free  on  application  to  the 

NATIONAL    PROVIDENT   INSTITUTION^ 

48,  GRACECHURCH  STREET,  LONDON,  E.C.  3. 


LIFE  ASSURANCE  AT  MINIMUM  RATES. 

A  Plan  of  Assurance  Specially  Adapted  for  Present  Time* 

For  particulars  address  the 

GRESHAM  LIFE  ASSURANCE  SOCIEH, 

St.  MUdred'.  House,  Poultry,  E.C.  »-TD., 

FOUNDCD      1»«»-  FUNDS     SIO.BOO.OOO. 


THE  GRESHAM  FIRE  AND  ACCIDENT  INSURANCE 

SOCIETY.  LIMITED, 
Transacts  all  classes  of  Fire  and  Accident   Business. 

Chief  Orricl :    St.  Mildhed's  Houis,  Pocltrt,  Lokdow.  EC. 


Zhc  5nveetor6*  IReview, 


Vol.  XU.— No.  1,048. 


SATURDAY,  FEB.  2,  1918. 


("VXTp".')  Price  6d. 


PUBLISHER'S    NOTICES. 


JINSWERS    TO    QUERIES. 


_  IbZ  investors'  IReVieW  is  a  subscription  Joumal.  and  will 
«e  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning 
on  the  following  terms  : — 

One  Ifcar,  £1  5s.  Od.    Six  Months,  12s.  6d.    Three  Months,  6s.  6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year,  £1  8s.  Od.     Six  Months,  14s.  Od.    Three  Months,  7s.  Od. 

Short  of  Three  months  thf   Price  is  6id.  per  Cop>  Inland,  and 

7d.  Aoroad,  Post  Free. 

Cloth  cases  for  binding  the  Half  Yearly  Volumes  price  1b.  6d., 

postage  4d.  extra.    Bound  Volumes  158. 6d.,  or  188. 3d.  post  free. 

Cneques  and  P.O.  Drafts  should  be  made  payable  to 

"Investors'  Review," 

Norfolk  House,  Norfolk  Street, 
London,  W.C. 


Telephone  No. : 
Gerrard  9132. 


Telegraphic  Address : 
"Unveiling,  London." 


The  Editor  caaaot  uaaertake  to  retura  rejected  com- 
municatlons. 

Letters  trom  correspondents  must,  la  every  case,  be 
autbemlcated  by  tbe  name  and  address  of  the  writer. 

The  Editor  desires  It  to  be  understood  that  a  charge  Is 
made  tor  the  Insertion  of  reports  under  tbe  beading  of 
Company  Meetings,  and  they  cannot  accept  responsibility 
tcr  statements  made  therein. 


r 


One   Reply    to    One   Question  —  One    Shilling,      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  kept,  as  securities  cannot  be  named  with  comments  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issne 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  iu  advance,  a 
Key  to  the  previous  week's  replies  will  be  sent  early  in  the 
following  week. 

Deposits  of  "  Query  Money  "  may  be  made  in  advance,  and  will 
be  acknowledged  in  the  "Answers"  column.  Notice  of 
exhaustion  will  also  be  given  there. 

Telegrams  advising  about  new  securities  cost  Half-a- 
Cpown  each,  plus  cost  of  the  telegram. 

Private  Letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
Shillings,  but  for  this  three  questions  will  be  answered  [il 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Half-a-Crown  per  question. 

Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  on  terms  varying  according  to  the  time 
taken. 

Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


Passing   Events. 


A  decline  in  the  sales  of  National  War  Bonds  was 
to  be  expected.  Bursts  of  enthusiasm  are  never  last- 
ing, and  besides  the  taxes  are  now  being  pulled  in  so 
rapidly  that  after  paying  them  people  for  a  time  have 
often  no  money  to  spare.  In  view  of  the  circumstances, 
it  is  amazing  to  find  the  sales  keeping  up  as  well  as 
they  do.  In  the  week  ended  last  Saturday,  for 
«xample,  of  the  Bank  of  England  issue  ;^24,097,oi8 
was  sold  to  2o,397  buyers.  This  is  a  decrease  of 
j(^6,676,225  on  the  previous  week's  sale  and  of  3,353 
in  the  number  of  subscribers,  but  it  was  for  all  that 
.a  very  good  display.  The  total  number  of  applications 
has   now  been   brought    up  to  289,543   and    the   total 

I  amount  subscribed  to  ;^3o8.76o,325.  The  Post  Office 
^^Iso  did  less  well  in  the  week  ended  January  19.  Yet 
^Rt  sold  to  35,200  buyers  ;<^i, 067,000  of  its  issue  of 
National  War  Bonds.  This  was  a  decrease  of  5,800 
In  the  number  of  buyers  and  of  ^90,000  in  the  amount 
netted,  but  the  total  number  of  sales  since  the  Post 
Office  issue  began  has  been  604,400  and  the  aggregate 
of  money  yielded  ;£i4, 628,000.  Altogether,  therefore, 
the  War  Bond  issue  has  thus  far  produced 
;£323,378,ooo  since  the  sales  began  in  October  last. 
This  is  not  n<;arly  all  the  money  required,  but  it  is 
more  than  we  expected,  and  we  must  just  persevere 
and  be  thankful.  Unquestionably  the  bond  is  good 
and  attractive,  much  less  likely  to  shrink  in  price  than 
a  long-dated  security.  Of  War  Savings  Certificates 
sold  during  the  week  ended  January  19  the  number 
r'^^as  2,335,065,  making  the  total  sales  to  date 
i44:'52,47o.  That  number  of  fifteen-and-sixpences, 
equivalent  to  ;^ii  1,718, 164,  has  been  netted  by  the 
Treasury,  but  it  docs  not  follow  that  the  number  of 
certificates  disposed  of  represent  144  million  different 
buyers.  On  the  contrary,  we  should  doubt  whether 
Tialf-a-million  different  people  have  Jndulged  themselves 
with  this  form  of  investment. 


the  daily  expenditure  on  supply  was  quite  modest  at 
;£'5, 147,000.  How  then  did  the  gross  outlay  of  the 
week  come  to  be  so  enormous?  The  cause  is  found 
in  the  floating  debt,  the  management  of  which  becomes 
increasingly  irksome  and  onerous  as  the  mass  ex- 
pands. Last  week,  for  example,  the  Treasury  bills 
maturing  amounted  to  ;^73,52o,ooo,  and  the  Treasury 
had  to  renew  the  whole  of  this,  or  ^73,298,000,  in 
spite  of  the  fact  that  it  got  ^37,497,000  from  National 
War  Bond  sales  and  ^"2,500,000  from  War  Savings 
Certificates,  besides  ;^4, 125,000  drawn  from  other  war 
debt  sources.  And  with  all  these  helps  the  receipts 
were  ;^i 24,296  less  than  the  outgoings,  and  to  this 
extent  the  Exchequer  balances  were  reduced  to 
^16,517,000.  A  year  ago  they  were  ;^24, 163,000,  and 
undoubtedly  the  Treasury  is  running  it  fine,  as  the 
market  slang  has  it.  Last  week,  besides  the  expendi- 
ture just  mentioned,  ;^i,649,ooo  had  to  be  applied  as 
depreciation  fund  to  support  the  market.  Probably 
this  propping  will  have  to  be  continued,  at  any  rate 
until  after  the  end  of  the  fiscal  year  in  April  next, 
because  not  a  few  subscribers  to  the  War  Loan  of  a 
year  ago  are  probably  being  obliged  to  sell  some  of 
their  allotments  in  order  to  pay  their  taxes.  The 
Treasury  also  had  to  pay  off  ;^i,  159,000  of  War  Loan 
and  Exchequer  bonds  and  ;£^3, 133,000  of  other  war 
debt,  but  the  greatest  call  of  all  on  its  resources  was 
the  necessity  of  repaying  ;^22,ooo,ooo  of  temporary 
advances.  So  altogether  last  week  upwards  of 
;^io5,ooo,ooo  of  the  overturn  was  finance,  and  finance 
alone.  Perhaps  "  necessity  "  is  not  the  right  word  to 
apply  to  the  repayment  of  so  large  a  mass  of  temporary 
advances,  but  there  can  be  no  question  of  the  ex- 
|3ediency  of  doing  so  whenever  funds  are  available. 


Last  week's  summary  of  the  Treasury  receipts  and 
payments  show  a  gross  expenditure  of  ;^i39,o6i,ooo, 
l)ut     of     this     happily— in     a     sense     at     "least— only 
>37. 485.000  was   the    actual  outgoings  of   the    week 
n     current     requirements.        Supply      services     took 
^36,029,000,  war  debt  interest  ;^i, 056,000,   and  mis- 
cellaneous   expenditure,    ;^400,ooo,     making    up    the 
Barger  total.     It  was  barely  ;^5, 360,000  per  diem,  and 


An  interesting  debate  was  raised  by  Mr.  Herbert 
Samuel,  chairman  of  the  Committee  on  National  Ex- 
penditure, in  the  House  of  Commons,  last  Tuesday,  on 
National  expenditure.  His  speech  was  an  instructive 
one,  and  it  led  to  other  good  speeches.  Dealing,  for 
example,  with  the  question  of  inflation,  Mr.  Samuel 
gave  it  as  his  opinion  that  "  the  increase  of  our  paper 
money  has  played  a  somewhat  subordinate  part  in  rais- 
ing prices,"  and  we  think  that  view  the  correct  one. 
An  all-round  increase  of  10  per  cent,  in  prices  and 
wages  would  involve  the  State  in  an  increased  expendi- 
ture of  ;^i3o,ooo,ooo  a  year.  Our  most  important 
paper  money,  however,  is  not  Bank  or  Treasury  notes. 


jc8 


^be  Jnvestors'  TRevlew. 


February  2,  1918. 


but  cheques.  That  is  to  say,  cheques  are  our  active  and  Russia  continues  to  present  an  aspect  of  chaos  and 
universal  paper  money,  and  the  inflation,  which  means  anarchy  let  loose  well  calculated  to  fill  the  mind  with 
the  decreased  purchasing  power  of  the  currency  against  despair.  But  we  must  not  despair  because  we  can 
commodities,  may  be  due  to  the  augmented  volume  of  hope  that  out  of  the  disorder  now  prevailing  a  new 
payments  by  cheque,  or  caused  by  the  increase  in  prices  constitution  of  society  must  ultimately  spring.  It  is 
themselves  through  other  influences,  and  by  the  ever-  said  that  Trotsky  has  gone  back  to  Brest-Litovsk  ready 
extending  expansion  of  credit  by  the  Government.  One  to  patch  up  a  betraying  peace  on  any  ters  with  the  Prus- 
of  the  chief  causes  in  the  rise  in  prices  is  accordingly,  sian  tricksters  there,  and  if  that  be  true  we  regard 
as  Mr.  Samuel  pointed  out,  the  inflation  of  credits,  it  as  good  news,  for  the  worse  the  "  peace  "  the 
the  financing  of  the  war  by  various  expedients  other  greater  will  be  the  stimulus  to  Russian  patriotism, 
than  taxation,  and  the  raising  of  loans  drawn  from  Also,  should  that  peace  be  concluded,  its  terms  will 
the  savings  of  the  people.  Our  issues  of  paper  money  show  democracies  everywhere  what  to  expect  from 
have  been  quite  insignificant  compared  to  those  of  Mohenzollern  or  Habsburg  professions  of  Liberalism. 
Germany.  Here  the  note  issues  of  all  kinds  had  in-  But  it  is  not  certain  that  Trotsky  can  fulfil  his  alleged 
creased  since  the  war  began  up  to  December  last  from  purpose,  or  even  that  he  has  that  purpose.  His  actions- 
';^45 ,000,000  to  ;^277,ooo,ooo,  and  the  "large  part  of  the  look  tortuous  and  his  aims  often  contradictory,  but  his 
increase  is  represented  by  paper  issued  in  exchange  for  words,  though  fiery  enough,  appear  sometimes  to  be 
gold  withdrawn  from  circulation."  But  the  visible,  or  charged  with  a  greater  insight  into  the  wiles  of  the 
acknowledged,  paper  money  of  Germany  has  risen  from  Teuton  and  the  problems  of  Russian  reorganisation^ 
^ioo,ocxj,ooo  in  round  figures  to  ;^4i, 000,000,  and  than  we  should  have  expected.  Meanwhile  anarchy  is 
this  is  by  no  means  all  of  it.  rampant  in  Finland,  where  the  Nationalists  have 
appealed  to  Sweden  for  help  against  the  Bolshevik  and 

Turning  to    another   subject— the    business    of    the  rebel  "  Red  Guard  "  treacherous  attacks.      And  in  the 

Committee  over  which  Mr.  Samuel  presides,  was  to  try  Ukraine  both  parties  claim  victory,  so  that  we  cannot 

to  secure  economy  in  spending,  but  its  efforts  in  that  tell  whether  or  not   the  local  patriots  have  the  upper 

direction  have  been  continually  thwarted  by  the  increas-  hand.      In  the  South,  however,  Rumania  seems  to  be 

ing  needs  of  the  Government.      Since  the  Committee  taking  action  with  a  view  to  rescuing  the  oppressed  in 

was  appointed  last  August,   there  have  been  a  dozen  Bessarabia  from  their  irresponsible  masters.      Away  to 

specific   increases   of   National  expenditure   sanctioned  the  East  and  in  Siberia,  where  Bolshevik  influence  has 

by  the  Government,  and  it  is  worth  while  setting  them  robbed  British  shareholders  of  the  Kyshtim  and  much 

out  as  given  by  Mr.  Samuel  :—  other  property,  all  is  darkness,  and  we  know  not  what 

Subsidy  given  to  reduce  the  price  of  bread  As.ooo.ooo  to   look   for,  but   again  we   say   it   would  be   unwise  to 

Subsidy  given  to  growers  of  potatoes  5,000,000  despair  of  Russia. 

Further  bonus  given  to  bakers  to  encourage  them  to  

use  potatoes  in  the  making  of  bread  150,000  ,„,  ^      r  ^1       i_        j      r  1  1       1      r>      1       t  ..j      <■  _ 

Increase  in  the  payment  of  soldiers  and  sailors  65,000,000  The  report  of  the  board  of  Lloyds   Bank,    Ltd.,   for 

Additional  sums  paid  in  increased  pay  to  officers  of  the  year  1 91 7  tells  the   same   story  that  all  the  others 

the  Army  and  Navy 7,850,000  tell.     Liabilities  on  current,  deposit  and  other  accounts 

Bonus  or  wage  advance  to  miners 20,000,000  ^^^^    ^22,600,740   to   an   aggregate   of   ^174,068,047. 

Bonus  or  wage  advance  to  munition  workers,  direct  —,  .     .  ,^^'.'^      .     ,  ^^  j  i„       uCi„„„„  „*  tUo 

and  indirect 40,000,000  Tb's  >s  exclusive  of  the  profit  and  loss  balance  at  the 

Ditto,   railway  workers   10,000,000  end  of  the  year,  which  was  ;£;629,897,  bringing  up  the 

Ditto,  Civil  servants     3,000,000  aggregate   liability   to   ;^i74,697,944.      ITie   bank   has 

Ditto,  teachers  in  Ireland   170,000  jjig^  expanded   its   acceptances    business.      It   forms   a 

^ho^^o''ti^eii^(^'i;^;^r^c;Fnnr.         4-!^  "'''''   ^"^-^    of    ^iO,375>536,    which    was    ;^4.054.42. 

larger  than  at  the  end  of   1916.     The  paid-up  capital 

Total  increase  ^^196, 170,000  remains  at  ;^5,oo8,672,    but   the  reserve  is  larger  by 

;^40o,ooo  added  to  it  out  of  the  profits  of  the  year,  and 

Here  we  have  upwards  of  ;^i96,ooo,ooo  added  to  the  now   stands   at  ;£'4,ooo,ooo.      Changes   in   the    assets 

current  annual  expenditure  of   the  Treasury  within   a  correspond  to  these  figures,  and  show  the  bank  to  have 

few  months,  an  amount  larger  than  the  total  expendi-  been  one  of  the  most  effective  helpers  in  providing  the 

ture  of  the  country  a  year  or  two  before  the  war.     No  Government,  through  its  customers,  with  the  means  to 

wonder  people  begin  to  be  anxious  about  the  taxation  prosecute  the  war.     Cash  in  hand  and  at  the  Bank  of 

or  "conscription"  of  capital  and  things  of  that  kind,  England  is  ;^3, 430,713  lower  at  ^34,684,836,  but  the 

and   although  Mr.    Bonar   Law,   in   a  very   frank  and  call  and  short  notice  money  in  the  market  is  ;^76i,553 

manly  speech,  did  his  best  to  conjure  away  the  malaise  up    at    ;^7, 191,891.      War   Loans   at   cost   and   other 

which  has  been  excited  in  the  public  mind  by  his  in-  British  Government  securities,  which  form  an  item  of 

formal  private  talk  with  Labour  representatives  about  ^^34,227, 841,    also   show   a    reduction   of  ;^i, 546,969. 

a  possible  conscription   of  capital,  we   fear    the  sight  but  bills  of  exchange  are  larger  by  ;^24,594,707,  and 

of  the  actual  figures  of  expenditure  cannot  prevent  men  now  stand  at  ;£^39,9oi,359,  and  a  great  proportion  of 

of  means  of  all  degrees  from  being  uneasy  about  the  this    increase   may    be    assumed    to    represent   money 

future.      How  is  the  revenue  to  be  raised  unless  capital  advanced  to  the  bank's  customers  to  enable  them  to 

is  seized    on    one   pretext    or    another?      That  is  the  subscribe  to  Government  loans.     The  fix'ed  investments 

problem  lying   ahead,   and    its   urgency   may,   perhaps,  in    Indian    and    Colonial    Government    stocks,    British 

have  led  Mr.  Asquith  to  refrain  from  giving  any  pledge  Corporation  stocks,  English  Railway  debentures,  &c., 

on  the  subject.      It  must  not  dismay  us,  however,  be-  are  ;^2, 575,726  smaller  at  ;^3,292,233.     Advances,  on 

cause  after  all  the  greater  the  strain,  the  more  resolute  the  other  hand,    are  ;^7,6o9,867   up  at  ;^6i  ,466,708, 

must  be  the  determination  of  all  concerned  to  increase  but   there   is  a  decrease  of  ;^i3i,o99  in  the  value  of 

the    wealth  of   nation   and    Empire — to    produce   more  premises,    now   ;^2,70i,746.      This    is   ;^3i,ooo   more 

while  consuming  less,   and    so,    by    enlarging  the  re-  than  the  amount  assigned  from  last  year's  revenue  to 

sources  of  the  country  and  the  Empire  as  well  as  help-  write  this  asset  down.     The  aggregate  of  the  balance- 

ing  our  Allies,  to  make  concurrent  progress  in  obtaining  sheet      is      now      ;£!^i94,o82,i53,      an       increase      of 

the  means  with  which  to  pay  our  way.      We  shall  be  ;^22,449,666.       The     nctt     profit     of     the    year    was 

pinched,  but  with  goodwill  we  canovercome.  The  burden  ^{^179,320  better  at  ;^i,463,i26,  and  after  paying  the 

also  calls  for  a  wisely  conceived   method  of  applying  usual  dividend  at  the  rate  of  18J  per  cent.,  or  29s.  per 

spare  capital  to  the  reduction  of  the  mass  of  the  debt ;  share,  half  six  months  ago,   the  other  half   now,    the 

for  to  allow  all   free  communities   to  lie  permanently  directors  were  able   to  place  ;^40o,ooo  to  reserve,  as 

beneath  the  crushing  burdens  now  being  imposed  upon  we   have  stated,   to   write    ;^ioo,ooo    off   the   cost   of 

them  by  this  devouring  conflict  would  be  to  condemn  premises  as  compared  with  ;^6o,ooo  a  year  ago,  and 

our  civilisation  to  ultimate  extinction.      Nor  must  we  to  devote  ;^ioo,ooo  to  payment  of  a  staff  bonus.      A 

ever  forget  that  the  Germans  will  have  to  pay  the  year  ago  no  staff  bonus  was  provided  for,  but  then 
damages,  even  should  it  take  them  a  century  of  bond-  ;^52o,ooo  was  placed  to  depreciation  in  the  value  of 
age.  the   bank's    investments,    which    this    year    needs    no- 


February  2,  1918. 


Cbe  investors'  "Keview. 


109 


adjustment.  The  actual  amount  of  revenue  devoted  to 
other  than  dividend  purposes  was  therefore  the  same 
in  each  of  the  two  years,  viz.,  ;^6oo,ooo,  but  as  the 
profit  was  £179,564  better,  including  the  balance  of 
^'107, 205  brought  forward,  it  follows  that  the  amount 
carried  forward  is  this  time  ;^289,464,  an  improvement 
of  ;^"i82,25o.  Lloyds  Bank,  therefore,  follows  the 
fashion,  and  does  not  pay  away  its  larger  profits. 
Shareholders  may  well  give  ungrudging  support  to  this 
wise  conservatism. 


The  Capital  and  Counties  Bank,  Ltd.,  for  the  first 
time  issues  its  report  for  the  complete  calendar  year, 
and  at  all  points  the  display  is  a  fine  one.  Gross  profits 
amounted  to  ;^i,i47,ooo,  an  increase  of  ;^"  120,000  over 
tlie  previous  complete  year  to  June  30,  1916,  and  the 
<t\penditure  was  ;£^92,ooo  higher  at  ;^75o,ooo.  Conse- 
quently the  nett  profit  is  ;£^397,ooo,  an  increase  of 
;^28,ooo,  and  ;^i 2,000  more  was  brought  in.  The  divi- 
dend remains  at  14  per  cent.,  but  ;^io,ooo  more  at 
£2^,000  is  written  off  premises,  and  the  super- 
annuation fund  again  gets  ;^io,ooo.  Nothing,  how- 
ever, as  against  ;^7o,oc>o  has  to  be  allowed  for  depre- 
ciation,  and  the  carry  forward  of  ;^204,ooo  is  ;^i  17,000 
larger  than  the  sum  brought  in.  As  compared  with 
December,  1916,  deposit  and  current  accounts  have  in- 
creased ^^6,350,000  to  ;^58,646,oc>o.  Cash  in  hand  and 
at  Bank  of  England  is  ^980,000  up  at  ;^i2, 175,000, 
and  money  at  call,  &c.,  has  risen  ;^ 4,0 13, 000  to 
;^io, 625,000.  Bills  discounted  and  advances  are 
;j2,023,ooo  higher  at  ;^22, 195,000,  but  investments 
have  been  reduced  by  ;^520,ooo  to  ;£J^i5,350,ooo, 
acceptances  by  ;^ioo,ooo  to  ;£J'i,367,ooo,  and  bank 
premises  by  ;^i9,ooo  to  ^^1,055,000.  The  balance-sheet 
reaches  the  handsome  total  of  ;^62, 768,000. 


Martin's  Bank,  Ltd.,  has  fallen  into  line  with  the 
other  leading  banks  in  issuing  its  report  for  the  calendar 
year.  Compared  with  the  two  halves  of  1916,  gross 
profits  for  the  past  year  amounted  to  ;^202,976,  an 
increase  of  ;^27,ooo,  and  expenses  were  ;^"22,7oo 
higher  at  ;£i45,530.  Nett  profits  come  out  ;i^4,4oo 
higher  at  ^57,445,  and  with  a  little  more  brought  in 
the  directors  are  able  to  repeat  the  dividend  of  6  per 
cent.,  to  set  aside  ;6'5,ooo  more  at  ;^27,5oo  for  depre- 
ciation and  other  contingencies,  and  still  leave  the 
balance  forward  practically  unchanged  at  ;^23,48o. 
Deposits  have  increased  ;^727,ooo  to  ;£'5,035,q<?o,  cash 
is  up  ;^220,ooo  at  p^i,  142,000,  and  money  at  call,  &c., 
;^348,ooo  at  p^i, 343,000.  British  Government  securi- 
ties have  increased  ^47,000  to  ;^942,ooo,  but  other 
investments  are  ;^26,ooo  down  at  ;^245,ooo.  Bills 
receivable  have  risen  ;^36,ooo  to  ;^574,ooo,  and 
advances  3^133,000  to  ;^i, 380,000.  ITie  balance-sheet 
total  is  ^702,000  up  at  ;^6,o84,ooo,  and  although  the 
figures  are  small  compared  to  many  others  we  have 
become  accustomed  to  recently,  the  business  is  quietly 
progressive. 


Another  very  successful  year  has  been  experienced 
by  the  Canadian  Bank  of  Commerce.  In  the  twelve 
months  to  November  30  nett  profits  amounted  to 
;^54i,96o,  an  increase  of  ^40,000,  and  as  ;^7o,ooo 
more  was  brought  in  the  available  balance  is  £1 10,000 
"P  ^'  ;£^7o6,82o.  The  dividend  cSf  10  per  cent,  and 
bonus  of  2  per  cent,  are  repeated,  ;^i 7,460,  or  ;^i,ooo 
more,  is  transferred  to  pension  fund,  and  the  balance 
forward  is  increased  by  ;i^io9,ooo  to  ;^273,7io.  Notes 
in  circulation  are  a  million  higher  at  ^4,930,000,  and 
deposits,  &c.,  have  risen  ;^g,5oo,ooo  to  ;256, 800,000. 
Cash  has  increased  ;^i, 700,000  to  ;^i  1,230,000,  and 
balances  due  from  other  banks  are  ;^"8oo,ooo  up  at 
;^4,6o9,ooo.  Call  and  short  loans  are  half-a-million 
lower  at  ;^6,89o,ooo,  but  investments  have  increased 
£5,700,000  to  ;^i  1,480,000,  and  advances  three  mil- 
lions to  ;^33.835.ooo-  The  balance-sheet  totals 
£70,762,000,  an  increase  of  loj  millions,  and  it  is 
evident  that  the  bank  is  securing"  a  good  share  of  the 
prosperity  which  Canada  is  enjoying  at  the  present  time. 
As  an  indication  of  the  strong  position  of  the  bank  we 


may  mention  that  the  reserve  and  balance  forward  are 
practically  equal  to  the  paid-up  capital  of  ;^3, 082,000. 

In  the  past  year  the  gross  profits  of  the  Clydesdale 
Bank,  Ltd.,  expanded  ;^47,5oo  to  just  over  half-a-mil- 
lion, but  expenses  were  £,26,500  higher,  and  the  nett 
profit  is  ;^2i,ooo  up  at  £,'286,260.  Consequently  the 
directors  feel  justified  in  raising  the  dividend  from 
15  per  cent,  to  16  per  cent.,  but  they  do  not  neglect 
reserves,  and  £'5,000  is  again  written  off  premises,  and 
£■10,000  is  placed  to  superannuation  fund.  It  is  only 
considered  necessary  to  set  aside  £'40,000  against 
£^100,000  for  depreciation  of  investments,  but  on  this 
occasion  £^70,000  is  placed  to  reserve,  raising  it  to 
£■1,070,000,  and  the  carry  forward  is  a  little  larger  at 
£■28,070.  Business  activity  is  reflected  in  an  expan- 
sion of  half-a-million  in  the  note  circulation,  which 
now  stands  at  £'2,226,000,  and  deposit,  &c.,  accounts 
have  increased  four  millions  to  £;26,426,ooo. 
Cash  balances  are  up  ;^65o,ooo  at  £"4,932,000,  bills 
;^2, 625,000  at  £^8,212,000,  and  advances  £'2,355,000 
at  p^7, 207,000,  but  investments  have  fallen  £'i, 600,000 
to  £"10,407 ,000.  The  balance-sheet  totals  £'31,550,000, 
an  increase  of  ;^3,8oo,ooo,  and  everything  looks 
healthy. 

For  the  first  time  the  Gas  Light  and  Coke  Co.  issues 
its  report  and  accounts  for  the  whole  year  instead  of 
half-yearly  as  hitherto,  and  the  figures  make  a  dazzling 
display.  Total  revenue  amounted  to  £^7,o29,5oo,  or 
very  nearly  a  million  more  than  in  1916.  Sales  of  gas 
(thanks  largely  to  two  increases  in  price)  showed  an 
increase  of  £^540,000  at  £r4,475,ooo,  and  residuals 
brought  in  £^400,000  more  at  £'1,997,000,  while  meter 
rentals  also  showed  a  substantial  improvement.  Un- 
fortunately, the  whole  of  the  gain  was  sv/allowed  up 
in  higher  costs  and  expenses,  with  the  result  that  the 
nett  revenue  is  about  ;^2,ooo  down  at  £^1,029,000. 
Altogether  expenses  totalled  six  millions,^  against 
£■5,021,000  in  1916,  nearly  the  whole  increase  being  in 
the  manufacture  of  gas,  which  cost  £4,564,000,  or 
£■965,000  more.  The  cost  of  coal  alone  was  £^68o,ooo 
higher,  and  the  balance  was  made  up  of  other  mate- 
rials and  wages.  Total  wages  paid  amounted  to 
£^■1, 525,000,  an  increase  of  £^26o,oc)o,  while  salaries 
absorbed  £^204,oc)0,  an  increase  of  £^9,ooo.  About 
£^30,000  was  saved  on  distribution,  but  that  was  offset 
by  an  increase  in  rates  and  taxes.  With  £"95,000  less 
brought  in  the  revenue  balance  is  £'1,380,700,  out  of 
which  the  ordinary  stock  gets  a  dividend  at  the  rate  of 
;^3  14s.  8d.  per  cent,  per  annum,  against  £^4  4s.  for 
1916,  and  the  balance  forward  is  reduced  by 
£"100,000  to  £^251,000.  The  quantity  of  gas  made  Was 
31,480,510  thousands,  an  increase  of  2,233,000  thou- 
sands, and  the  total  amount  sold  was  28,373,000 
thousands,  an  increase  of  1,575,000  thousands,  or 
6  per  cent.,  while  there  has  been  an  advance 
of  3,870  in  the  number  of  consumers  and  of  43,370  in 
the  number  of  gas  stoves  sold  or  let  on  hire.  The 
company  lost  several  valuable  steamers  during  the 
year,  which  the  directors  have  only  been  able  to  re- 
place to  a  limited  extent,  and  in  other  respects  work 
has  been  carried  on  under  great  difficulties.  A  Bill 
has  been  deposited  in  Parliament  for  the  purpose  of 
altering  the  sliding  scale  arrangement  temporarily,  and 
there  is  a  good  case  for  some  concession  under  the  pre- 
sent exceptional  conditions,  but  the  public  has  not 
always  t>een  so  well  served  by  the  company  in  the  past 
that  it  has  any  strong  claim  for  particularly  generous 
treatment.  However,  Parliament  is  in  a  spendthrift 
mood,  and  will  probably  do  whatever  it  is  asked. 


Not  much  light  is  thrown  on  the  railway  position  by 
the  report  of  the  Great  Eastern  Railway  Co. — the  first 
of  the  trunk  lines  to  issue  its  accounts  for  the  past 
year — but  there  are  encouraging  points  if  you  search 
for  them.  In  the  capital  account  the  receipts  and  ex- 
penditure result  in  a  credit  of  £"70,000,  following  a 
credit  of  £"53,400  in  1916,  and  the  debit  balance  is 
reduced  to  £J^i, 660,000,  but  evidently  a  fresh  issue  will 
be   necessary  whenever  conditions   permit.      Gross   re- 


no 


^be  investors'  IRevlew, 


Februaky  2,  1918. 


ceipts  for  the  year  amounted  to  ;^7,842,ooo,  an  increase 
of  ;^686,ooo,  but  expenses  were  ;(^68j,ooo  higher  at 
;^5,8o8,ooo,  so  that  the  nett  earnings  were  a  trifle  less 
at  ;^2,034,200.  Miscellaneous  nett  receipts  were  ;^3,ooo 
lower  at  ;^i 23,000,  and  the  amount  brought  in  was 
;^7,ooo  down,  with  the  result  that  the  total  balance  is 
;^"i2,ooo  smaller  at  ;^2, 259,000.  On  the  other  hand, 
fixed  charges,  interest,  &c. ,  required  ;£^37,ooo  less,  and 
after  placing  ;^"'25,ooo  (new)  to  reserve  the  surplus  is 
practically  the  same  as  last  year  at  ;^i,2S9,46o.  Con- 
sequently, the  dividend  of  li  per  cent,  for  the  year  (of 
which  ^  per  cent,  has  been  paid  as  interim)  is  repeated, 
and  the  balance  forward  is  roughly  unchanged  at 
;^ioi,78o.  In  the  balance-sheet  the  most  noteworthy 
point  is  that  the  depreciation  fund  (including  deferred 
maintenance)  has  been  increased  by  ;^485,ooo  to 
;^i.35ii740,  and  the  steamboat  fund  (including  insur- 
ance) ;^52,ooo  to  ;^664,200.  Savings  bank  deposits, 
curiously  enough,  are  ;^36,ooo  lower  at  ;^694,ooo.  Cash 
in  hand  has  increased  ;^i6o,ooo  to  ;^86i,ooo,  Govern- 
ment securities  are  ;£'447,ooo  up  at  ;^i, 123,200,  and 
accounts  receivable  have  risen  ;^325,ooo  to  ;^665,6oo. 
The  fact  that  the  company  has  tucked  away  over  two 
millions  for  depreciation  and  renewals  is  the  most 
satisfactory  factor  in  the  position,  but  after  nearly  four 
years  of  comparative  neglect  it  will  all  be  needed,  and  a 
good  deal  more. 


Railway  reports  for  the  past  year  are  not  turning  out 
so  well  as  some  people  hoped,  and  there  is  little  sign 
of  the  large  earnings  from  invested  funds  which  the 
market  was  talking  about  a  few  weeks  ago.  The  Great 
Northern  Railway  Co.  obtained  gross  receipts  of 
^8,269,000,  an  increase  of  ;^47o,ooo,  but  the  expendi- 
ture was  ;£r45i,ooo  higher  at  ;<f 6,047 ,000,  and  the  nett 
receipts  were  therefore  only  ;^i9,50o  up  at  ;^2, 222,000. 
On  the  other  hand,  miscellaneous  nett  credits  were 
actually  ^11,400  smaller  at  ;^225,5oo,  general  interest 
alone  showing  a  decline  of  ;^9,ooo,  consequently  total 
nett  income  was  ;^8,c)00  up  at  ;^2,447,3oo.  After  meet- 
ing fixed  charges  and  placing  ;^7o,ooo  to  reserves 
against  ;^5o,ooo  last  year,  the  dividend  on  the  deferred 
and  "  A  "  stocks  is  again  2^  per  cent.,  and  the  balance 
forward  is  ;^i,c)00  smaller  at  ;^i 39,600.  From  the 
general  balance-sheet  we  find  that  the  reserve  for 
deferred  renewals  has  been  increased  by  ;^340,ooo,  and 
now  amounts  to  ;^74S,Soo,  and  ;^33,C)oo  has  been 
placed  to  depreciation  fund,  raising  it  to  ;^242,ooo, 
but  it  must  not  be  forgotten  that  there  are  four  years' 
arrears  to  make  good,  and  the  provision  for  them  looks 
none  too  generous. 


The  report  of  the  Ferreira  Deep  for  the  year  ended 
September  30  shows  very  clearly  the  effect  of  the 
labour  shortage  and  increased  working  costs  on  gold 
production.  There  were  crushed  586,320  tons,  as 
against  643,460  tons,  and  the  yield,  owing  mainly  to  the 
mining  of  more  ore  from  the  eastern — and  poorer — 
section  of  the  mine,  declined  2s.  6d.  to  32s.  8d.  per  ton, 
the  total  revenue  being  ;^957,973  against  ;^i,o7o,786. 
Working  costs  averaged  21s.  ;^d.,  or  4d.  more  per  ton 
than  in  191 5-16,  and  the  working  profit  was  thus 
2S.  lod.  lower  at  iis.  sd.  per  ton.  The  total  working 
profit  was  ;^334,ooo,  as  compared  with  ;^458,695,  and 
the  nett  profit  was  ;^2 19,032  less  at  ;£^233,667.  Conse- 
quently the  dividend  had  to  be  reduced  from  38!  per 
cent,  to  28|  per  cent.,  but  the  carry  forward  was  raised 
from  ;{5"i  17,462  to  ;^i3S,477.  Values  exposed  by  de- 
velopment have  been  generally  better  than  in  the  year 
before,  but  the  ore  completely  developed  has  been  less  by 
some  77,000  tons,  and  of  considerably  lower  value. 
The  ore  reserves  are  estimated  at  1,305,500  tons,  valued 
at  7.6  dwts.  per  ton  as  compared  with  1,854,100  tons, 
valued  at  35s.  per  ton.  Little  ground  remains  unde- 
veloped, except  in  low-grade  areas  in  the  east,  and 
these  will  be  prospected  now  that  the  western  section  is 
nearing  exhaustion. 


Ltd.,  for  the  year  to  November  30  with  those  for  the 
previous  twelve  months,  but  there  would^scem  to  have 
been  a  very  serious  set-back.  Nett  profits,  "  after 
charging  the  balance  for  excess  profits  for  the  past  yeat 
and  making  provision  for  the  present  year's  liability," 
are  given  as  ;£.'54,845,  or  an  apparent  decrease  of 
;^350,ooo,  which  folI<>ws  an  increase  of  ;^i 55,000  last 
year  and  of  ^'i 45,000  in  the  previous  period.  A  year 
=i&o  ;^3 5, 000  excess  duty  was  paid  before  striking  the 
profit,  and  £?ioo,ooo  was  set  aside  as  reserve  for 
further  liability  in  this  connection.  That  has  evidently 
all  been  absorbed,  but  what  additional  provison  has 
been  made  is  not  disclosed.  With  ;^63,ooo  more 
brought  in  there  is  an  available  balance  of  ;^258,20o, 
so  the  dividend  of  9  per  cent,  and  bonus  of  2J  per  cent, 
are  repeated,  but  only  ;^5o,ooo  against  ;^i 50,000  is 
placed  to  reserve,  and  the  carry  forward  is  reduced  by 
;£'86,ooo  to  ;^i  17,200.  The  reserve  now  stands  at  a 
round  half-million.  Sundry  creditors  have  increased 
;^423,ooo  to  ]^"872,ooo,  and  cash,  bills,  &c.,  have  risen 
;^230,ooo  to  ;^335,ooo,  while  stocks  and  sundry  debtors 
lumped  together  stand  at  the  large  sum  of  ;£.2, 100,000. 
Goodwill,  amounting  to  ;£^300,ooo,  was  entirely  written 
off  some  years  ago,  and  the  company  has  always  been 
very  ably  and  prudently  managed,  so  that  it  can  stand 
a  spell  of  bad  trade  without  serious  inconvenience.  At 
the  same  time  the  drop  last  year  seems  to  indicate  a 
greater  reaction  in  the  wITolesale  drapery  business  than 
most  people  would  have  anticipated.  Perhaps  even  the 
highly-paid  munitioners  and  the  huge  army  of  Govern- 
ment officials  find  that  in  these  days  the  larder  must  be 
their  first  consideration. 


The  Falcon  Mines  has  marked  its  entry  into  the  list 
of  dividend-paying  Rhodesian  mining  concerns  by  de- 
claring a  distribution  of  no  less  than  20  per  cent,  for 
the  year  ended  June  30  last.  Operations  resulted  in  a 
profit  of  ;^  194,266,  and  after  allowing  for  interest 
charges,  the  nett  profit  was  ;^i76,i37,  an  increase  of 
;^4i,87i  on  1915-16.  The  dividend  absorbs  ;^'8o,ooo, 
and  ;^30,ooo  has  been  set  aside  for  debenture  redemp- 
tion, while  the  balance  carried  forward  is  raised  from 
;^40,758  to  ;^io6,894,  but  this  is  subject  to  excess 
profits  duty.  The  indebtedness  to  Gold  Fields 
Rhodesian  Development  Co.  has  been  reduced  to 
;^8,ooo  from  ;^240,ooo,  which  was  incurred  in  bring- 
ing the  mine  to  the  producing  stage,  which  was  first 
reached  in  June,  1914.  High  prices  for  copper  and 
silver  account  for  the  growth  of  the  company's 
prosperity,  for  the  output  of  copper  during  the  period 
under  review  was  3,423  tons,  as  against  3,451  tons  in 
1915-16,  while  that  of  gold  and  silver  was  35,496  ozs. 
and  72,937  ozs.  respectively,  as  compared  with  36,852 
ozs.  and  68,592  ozs. 


It  is  unfortunately  not  possible  to   make   an  exact 
comparison  of  the  results  of  A.  and  S.  Henry  and  Co., 


The    Banking    Year  and    Points    from 
Bank  Chairmen's  Speeches. 

Of  late  years  a  fashion  has  grown  up  amongst  our 
bankers  to  make  instructive  speeches  at  the  annual 
meetings  of  shareholders.  There  were  always  speeches 
of  sorts  at  these  gatherings,  we  may  be  reminded,  but  in 
the  good  old  days  when  banking  was  treated  as  a 
mystery  unfit  for  display  before  the  vulgar,  speeches  of 
ch::irmen  at  the  yearly  or  half-yearly  meetings  of  bank 
shareholders  were  generally  most  limited  in  scope,  not 
to  say  rather  bald.  But  nowadays— and  the  change  is 
most  welcome  and  refreshing — we  are  treated  to  dis- 
courses, not  only  about  the  affairs  of  each  particular 
bank,  but  upon  questions  of  national  and  international 
finance,  questions  of  public  policy  as  to  taxation  and 
trade,  &c.,  or  of  banking  reform,  and  so  on,  that  help 
to  educate  the  public  and  to  bring  shareholders,  boards 
and  customers  together,  as  it  were,  as  sharers  in  a 
bank's  prosperity. 

During  the  last  fortnight  we  have  had  many  of  these 
speeches,  and  without  exception  they  have  been  marked 
by  a  public  spirit  and  breadth  of  view  which  promises 
well  for  the  future  of  British  banking.  One  of  the 
first  meetings  to  be  held  was  that  of  Barclays,  Ltd., 
and  Mr.  Goodenough,  the  chairman,  who  presided,  had 


February  2,  1918. 


Zhc  Jnvestors'  TReview. 


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113 


^be  Jnvestors'  "Review 


FeURL'ARV  2,  1918. 


inlcrcsliiig  ihiiig-s  to  tell  the  shareholders  and  the 
public  about  the  growth  of  prosperity,  the  solidity  and, 
one  may  add,  the  beneficence  of  "  Barclays."  He  told 
us  that  our  National  Debt  would  amount  to  no  less  than 
;^'7,ooo, 000,000  at  the  end  of  the  war,  and  it  may  be 
more.  In  gross,  it  probably  will  be  more,  for,  as  he 
went  on  to  point  out,  we  must  expect  further  borrow- 
ings by  the  Government  for  purposes  of  reconstruction. 
And  the  war  is  by  no  means  over  yet.  In  any  event, 
the  charges  for  the  interest  and  redemption  of  the  huge 
debt  taken  at  the  lowest  figure  will  be  "immense." 
How  are  they  to  be  met?  Nobody  can  devise  how 
with  any  certainty,  but  our  lawmakers  would  do  well 
to  pay  attention  to  Mr.  Goodenough's  observation  upon 
the  policy  of  "levies"  upon  capital.  "We  cannot 
afford,"  he  said,  "  to  deprive  the  individual  of  the  capital 
that  is  his.  Capital  in  the  hand's  of  the  individual  is 
of  greater  v;due  than  in  the  hands  of  the  State."  That 
is  a  truth  only  too  readily  forgotten,  and  the  whole 
question  will  require  delicate  handling  if  we  are  to 
avoid  trouble.  And  how  to  obtain  the  needed  money 
without  impinging  on  capital  may  pass  the  wit  of  man 
to  conceive. 

As  always,  of  late  years,  one  of  the  most  comprehen- 
sive speeches  of  the  banking  year  is  that  of  Sir  Edward 
Holden,  chairman  and  managing  director  of  the  Lon- 
don City  and  Midland  Bank.  No  other  bank  chairman, 
except  Sir  Felix  Schuster,  has  prepared  himself 
-systematically  to  take  such  a  world-wide  .survey  of 
banking  interests  and  international  finance  as  Sir 
Edward  has  done.  And  since  the  war  began  he  has 
paid  particular  attention  to  the  finances  of  the 
German  Empire,  following  their  tortuosities  with  a 
keenness  that  cannot  be  to  the  taste  of  the  prime 
jugglers  in  Berlin.  This  gives  a  peculiar  interest  to  his 
address,  and  some  of  the  statements  made  by  him  on 
Tuesday  deserve  reproduction.  He  contrasts,  for  ex- 
ample, the  balance-sheets  of  the  German  Imperial  Bank 
of  July  23,  1914,  and  of  December  31  last.  At  the 
earlier  date  the  total  w-as  ;^'i  56,470,000 ;  at  the  end  of 
last  December  it  was  ;^"i, 034,259,000.  In  the  interval 
the  stock  of  gold  has  been  increased  from  ;^68,ooo,ooo 
to  upwards  of  ;^' 120,000,000  by  squeezing  the  metal  out 
of  the  hands  of  the  public  and  out  of  other  banks,  in- 
cluding— as  has  all  along  been  alleged,  and  not  impro- 
bably— ^the  Imperial  Bank  of  Austro-Hungary.  The 
liability  on  notes  issued  alone  has  risen  from 
;^94,545,ooo  to  ;£^573,378,ooo,  and  the  ratio  of  gold  to 
notes  has  fallen  from  71.7  per  cent,  in  July,  1914,  to 
20.9  per  cent,  at  December  31  last.  Nor  does  this  indi- 
cate the  whole  extent  of  the  substitution  of  credit  for 
substantial  wealth,  for,  over  and  above,  there  is  the 
Darlehnskassen  note  issue,  which  had  risen  by  the  end 
of  last  year  to  ;^384, 400,000,  of  which  ;£^65, 225,000  in 
lieu  of  gold  is  lodged  among  the  assets  of  the  Imperial 
Bank  as  part  security  for  its  own  note  issue.  Well  may 
Sir  Edward  Holden  say  that  the  Reichsbank  had  been 
working  at  "  full  stretch  "  for  the  Government,  and 
with  it  all  the  diflficulty  of  financing  the  war  must  be 
daily  on  th<j  increase  in  Germany  far  more  markedly 
than  here.  Sir  Edward,  indeed,  says  that  the  total 
issues  of  paper  money  in  Germany,  including  not  only 
Reichsbank  notes,  but  Imperial  Treasury  notes,  notes 
of  other  banks,  and  Darlehnskassen  notes,  now  amounts 
to  ;^984,ooo,ooo,  and  he  is  probably  well  within  the 
truth. 

The  seven  public  loans  issued  by  the  Government  of 
the  Empire  have  totalled  ;^3, 647, 000, 006,  but  these  two 
aggregates  represent  only  a  portion  of  the  debt,  and  we 
believe  Sir  Edward  is  right  in  his  assurance  that  the 
German  people  owe  altogether  a  good  deal  more  than 
,  we  do.  ITie  total  borrowings  of  Germany  since  the  war 
began  appear  to  be  about  ;^5, 100,000,000,  against  total 
cash  borrovi'ings  here  of  about  ;^4, 900, 000, 000.  The 
difference  is  not  great  in  appearance,  but  the  resources 
of  Germany  are  not  comparable  to  those  of  the  British 
Empire,  and  we  wonder  sometimes  what  German 
bankers,  great  iron  masters,  and  other  mighty  men  of 
Germany's  mushroom,  feverishly  expansive  industries 
think  about  how  the  Empire's  debt  now  piling  up  at 
unexampled  speed  is  going  to  be  provided    for  when 


the  war  does  end.  Will  they  be  able  to  trade  the  scrip 
off  upon  other  countries,  as  Sir  Edward  seems  to 
imagine?     We  .should  doubt  it. 

There  is  much  more  in  Sir  Edward  Holden's  speech, 
and  his  description  of  the  finances  of  the  United  States 
and  the  method  adopted  in  America  of  raising  loans  is 
most  interesting,  but  we  have  no  space  to  deal  either 
with  that,  or  with  his  onslaught  upon  the  antiquated 
constitution  of  the  Bank  of  England.  Undoubtedly  the 
Bank  of  England  does  want  reshaping.  We  .said  so, 
not  exactly  before  Sir  Edward  Holden  was  born,  but 
long  before  he  emerged  upon  the  City  as  one  of  the 
most  eager-minded  and  go-ahead  of  English  bankers— 
and  nothing  worth  recalling  came  ol  the  attempt,  be- 
cause the  other  banks  were  not  united  and  ready.  We 
doubt  much  whether  this  time,  either,  is  the  time  to 
begin  making  changes,  although  changes  are  unques- 
tionably demanded.  The  banking  system,  however — 
or  no  system,  if  you  prefer  it— of  this  country  has 
adapted  itself  to  the  restrictions,  and  absurdities,  even, 
of  the  Bank  Act  of  1844,  ""til  it  may  be  said  to  fit  its 
sphere  like  the  oyster  in  his  pearl-concealing  shell,  and 
m  proceeding  to  reform  the  Bank  of  England  we  should 
probably  be  compelled  to  disturb  the  smooth  working 
of  our  credit  machinery  in  many  ways.  All  our  energies, 
meantime,  are  required  to  carry  the  war  to  a  success- 
ful conclusion ;  we  cannot  give  our  minds  to  anything 
else.  When  the  war  is  over  it  will  be  the  time  to  re- 
model our  methods  of  business  and  to  harmonise  and 
re-shape  our  banking  system.  But  Sir  Edward  Hol- 
den's demonstrations  are  well  worth  noting,  and  should 
Ix-  kept  for  use  when  the  day  for  action  comes. 

We  have  already  dwelt  so  long  over  these  two  promi- 
nent and  extensively  reported  speeches  that  we  are 
forced  to  condense  the  further  notes  we  have  to  make. 
One  or  two  general  observations,  however,  must  first 
be  made.  Apart  from  the  amalgamations  now  so  con- 
spicuous, the  most  prominent  of  the  changes  gradually 
coming  over  our  banking  habits  and  Ideals  is  the 
tendency  to  expansion  abroad.  Lloyds  Bank  and  the 
National  Provincial  of  England,  for  instance,  have 
united  in  the  ownership  and  control  of  the  bank 
Lloyds  has  founded  in  France.  It  already  has  several 
branches  in  important  cities  of  the  Republic.  The 
London  and  South-Western  again,  now  united  with  the 
London  and  Provincial,  has  joined  Messrs.  Cox  in  the 
ownership  of  Cox's  Bank  in  France,  and  the  London 
City  and  Midland  and  the  London  County  and  West- 
rninster  have  both  acquired  Ulster  banks,  which  were 
hitherto  '  foreign  "  in  too  many  senses,  while  Barclays 
Bank  has  entered  into  arrangements  with  the  old 
Colonial  Bank  to  work  in  close  fellowship  with  it. 
Thus  our  banks  are  becoming  world  or  international 


LLOYDS  BANK 
LIMITED. 

HEAD  OFFICE :  71,  LOMBARD  STREET,  E.C  3. 


CAPITAL  SUBSCRIBED  -  £31,304,200 
CAPITAL  PAID  UP  -  -  5,008,672 
RESERVE  FUND  -  .  4,000,000 
DEPOSITS,  &c.  (Dec.,  1917)  174,697,945 
ADVANCES,  &C.        do.  61,466,709 


FRENCH    AUXILIARY: 

LLOYDS  BANK  (FRANCE)  AND 
NATIONAL  PROVINCIAL  BANK  (FRANCE)  LIMITED. 


February  2,  1918. 


tTbe  5nvestor8'  IReview. 


%n 


bankers  in  a  new  sense,  and  no  longer  stand  aloof 
in  proud  isolation,  leaving;  the  world  to  come  to  them 
or  not  as  it  pleased.  Whether  the  change  is  to  be 
carried  further,  and  to  prove  satisfactorily  remunera- 
tive, we  shall  not  try  to  speculate,  but  we  see  no  reason 
to  be  doubtful.  The  change  is  one  to  be  cordially  wel- 
comed for  many  reasons,  among  the  most  weighty 
being  the  world's  dependence  on  its  banks,  and  the 
interdependence  of  Allied  nations  in  all  affairs  of  trade 
and  progress  when,  after  the  war,  the  world  begins 
a  new  life.  Unless  our  banks  and  those  of  our  Allies, 
of  France  and  Italy  especially,  can  hold  themselves  up 
and  support  each  other  amid  all  the  ruins  and  destruc- 
tion of  wealth  which  the  war  has  brought  and  is  bring- 
ing upon  the  world,  how  will  it  be  possible  for  the 
different  populations  to  get  a  chance  to  restart  their 
industries,  rebuild  their  ruins,  recreate  their  inter- 
national commerce,  or  in  any  way  drag  themselves  out 
of  the  pit  into  which  the  war  will  have  flung  them? 

'ITie  world  will  depend  on  its  banks  more  than  on 
its  statesmen  for  its  material  salvation.  We  are 
threatened  with  conflicts  between  capital  and  labour, 
and  as  the  difficulty  of  living  increases,  the  envy  and 
wrath  of  the  working  man  seems  to  grow  hotter  against 
the  capitalist.  May  it  not  be  possible  for  some  develop- 
ment of  banking  usages,  or  adaptation  of  banking 
credit,  to  provide  a  way  towards  reconciliation,  so  that 
the  interests  of  the  man  who  earns  and  the  man  who 
pays  the  wage  can  be  reconciled?  Much  will  depend 
upon  the  spirit  with  which  our  banks  everywhere  face 
the  new  world  which  will  open  up  before  them  when 
peace  returns.  It  is  a  world  whose  characteristics  we 
as  yet  can  guess  almost  nothing  about,  and  our  whole 
future  may  depend  upon  the  adaptability  of  those  who 
lead  us  to  take  the  new  path  promptly  and  resolutely. 
Among  the  leaders  the  banks  must  take  a  first  place. 

As  we  have  already  dealt  fully  with  the  report  of  each 
bank  as  it  appeared,  we  need  not  now  return  to  their 
accounts,  which  are  besides  brought  together  this  week 
in  our  usual  condensed  exhibit.  But  some  of  the  ob- 
servations made  at  the  shareholders'  meetings  deserve 
I0  be  quoted  relative  to  the  mechanism  of  banking, 
the  sources  of  profits  and  other  matters. 
Mr.  Milburn,  for  example,  presiding  at  the  London 
Joint  Stock  meeting,  tells  us  that  the  world's  production 
of  gold  in  iqi6  was  some  ;^95,ooo,ooo  in  round  figures, 
and  that  no  less  than  ;^6o, 000,000  of  this,  or  about  two- 
thirds,  was  gold  produced  within  the  British  Empire. 
He  rightly  emphasised  that  fact,  and  declared  the  gold 
in  the  reserve  at  the  Bank  to  be  "  of  far  greater  import- 
ance to  the  nation  than  gold  in  the  form  of  trinkets,"  a 
sentiment  with  which  we  heartily  concur,  and  wish  some 
method  could  be  lighted  upon  to  turn  the  "  trinket  " 
gold  into  credit-sustaining  metal. 

As  to  how  profits  are  earned,  the  handiest  explana- 
tion was  that  furnished  by  Mr.  Mendl  in  his  speech  ;is 
chairman  at  the  annual  general  meeting  of  the  National 
Discount  Co.  The  whole  secret  is  in  the  following 
sentences  : — 

The  discount  rates  in  January,  1917,  averaged  a  little  over 
5  per  cent. ;  in  March  they  were  round  about  5  per  cent.  ;  in 
April  they  dropped  to  a  little  over  4J  per  cent.,  and  then  they 
rose  gradually  to  4I  per  cent.,  at  which  rate  they  remained 
practically  constant  until  the  end  of  December,  when  they  fell 
owing  to  the  reduction  in  the  rate  on  Treasury  bills.  The 
average  rate  of  interest  on  deposits  was  :  for  call  money, 
£4  2S.  7d.  per  cent.,  as  against  £4  4s.  gd.  in  1916;  and  for 
money  at  notice,  £4  7s.  7d.  per  cent.,  as  against  ^^4  gs.  gd.  in 
igi6.  The  average  rate  of  discount  for  the  year  was  £4  15s.  yd. 
per  cent.,  as  against  ^^^5  4s.  6d.  in  igi6,  and  was  evidence,  he 
thought,  of  the  financial  strength  which  the  country  was  show- 
ing. The  fact  that  at  the  end  of  igi6  it  was  considered  neces- 
sary by  the  Goveimment  to  make  an  issue  of  three-year  Ex- 
chequer Bonds  at  6  per  cent.,  whereas  at  the  present  moment 
the  National  War  Bonds  at  5  per  cent,  were  having  a  very  fair 
measure  of  support,  and  that  at  the  end  of  December  it  was 
^_  found  possible  to  reduce  the  rate  on  Treasury  bills  to  4  per 
B  cent.,  although  there  were  then  ;^i,o58,ooo  bills  running,  and 
^m  naturally  the  total  National  Debt  had  much  increased  during 
^K  the  year,  gave  them  every  confidence  as  to  the  ability  of  the 
^B       coun.try  to  hold  its  financial  position  right  through  the  war? 

■  What  may  be  called  the  mechanism  of  profit-earning 

H      is  disclosed    in    the    above   extract.      Discount   houses 
^B      and  banks  make   their  expenses  and  their  nett  profits 


out  of  the  difference  between  what  the  money  or  credit 
placed  at  their  disposal  costs  them  in  interest  allowed 
and  vi'hat  they  can  get  for  it.  In  ordinary  times  the 
margin  sometimes  differs  considerably  according  to 
the  condition  of  business.  In  war  time — at  any  rate 
in  this  war — the  margin  may  be  said  to  be  fixed  by 
authority,  as  witness  the  arbitary  looking  style  in  which 
the  Chancellor  of  the  Exchequer  reduced  the  rate  of 
interest  paid  by  him  on  the  Treasury  bills.  The  change 
involved  a  reduction  in  rates  all  round,  and  may  affect 
the  profit  margin,  which  was  sufficient  and  good  last 
year. 

Let  us  now  take  a  few  other  distinctive  utterances  of 
bank  chairmen  at  their  meetings.  Every  one  of  them 
had  something  important  to  say,  not  merely  about  the 
business  of  his  particular  bank,  but  about  general 
financial  business,  and  we  should  like  to  select  a  few 
of  these  facets,  so  to  say,  of  banking  opinion.  Natur- 
ally, at  the  meeting  of  the  London  and  South-Western, 
Sir  Herbert  Hambling,  who  presided,  had  much  to  say 
about  the  momentous  step  which  unites  it  with  the 
London  and  Provincial.  When  the  new  bank  is  organ- 
ised it  will  have  some  560  branches,  and  not  only  larger 
resources,  but  a  larger  scope  for  business,  and  all  re- 
sources will  be  needed  after  the  war.  "  Owing  to 
Government  control,"  Sir  Herbert  ptiinted  out,  and  his 
words  deserve  our  solicitous  attention  : — 

Artificial  conditions  have  prevailed  during  the  past  three  and 
a-half  years.  The  law  of  supply  and  demand  has  scarcely 
operated,  and  it  will  be  no  easy  task  to  get  back  to  normal  con- 
ditions. Millions  of  men.  have  ibeen  taken  from  productive  to 
unproductive  work,  and  not  only  have  we,  as  a  natron,  been 
spending  our  accumulated  savings,  but  devoting  to  a  large  ex- 
tent our  energy  in  production  to  destructive  purposes.  As  I  en- 
deavoured ilo  explain  ito  you  recently,  our  prosperity  after  the  war 
will  depend  on  the  excess  of  production  over  consumption.  Our 
standard  of  living  will  not  be  measured  by  the  rate  of  wages 
paid,  but  by  the  volume  of  commodities  we  are  able  to  create. 
We  shall  be  faced  with  the  alternative  of  either  drastically 
lowering  our  standard  of  living  and  restricting  the  volume  of 
our  imports,  or  by  organised  and  strenuous  effort  increasing 
production  far  beyond  pre-war  levels.  That  is  the  problem. 
We  need  to  increase  production  to  the  greatest  possible  extent, 
and  by  efficiency  and  by  all-round  co-operation  to  compensate  for 
the  lack  of  output  during  the  past  years.  How  are  we  to  do 
this?  In  the  first  place,  we  must  have  our  plans  prepared  before 
hand,  in  order  that  we  may  get  to  work  so  soon  as  demobilisation 
is  begun.  In  addition,  we  must  improve  our  industrial 
machinery,  in  order  that  the  last  ounce  of  efficiency  may  be 
produced  and  the  maximum  results  obtained.  When  I  say  that 
we  must  improve  our  industrial  machinery,  I  mean  that  we 
must  reorganise  our  whole  industrial  system  in  order  that  a 
maximum  output  may  be  obtained.  Not  only  should  the 
mechanical  machinery  used  be  of  the  most  up-to-date  descrip- 
tion, but  it  must  be  utilised  to  the  full.  The  relations  between 
capita!  and  labour  must  receive  most  careful  attention,  and 
some  fair  and  equitable  basis  must  be  arrived  at.  Huge  muni- 
tion factories  have  sprung  up  all  over  the  country,  and  in  many 
cases  these  are  capable  of  conversion  into  productive  works. 
This  will  involve  capital  outlay,  and  it  is  our  duty  as  bankers 
to  assist  the  manufacturer  in  every  way  we  can,  and  to  see 
that  such  assistance  is  applied  to  increase  the  nation's  output. 
There  will  also  be  a  great  need  for  raw  materials,  and  the 
banks  must  .see  that  facilities  are  available  whereby  manuf.ac- 
turers  can  obtain  the  necessary  finance  to  enable  them  to  be 
the  first  in  the  field  in  obtaining  such  materials,  for,  in  my 
opinion,  there  is  likely  to  be  a  great  shortage  in  the  supply. 
All  over  the  world,  including  enemy  countries,  preparation  is 
being  made  on  a  gigantic  scale  for  after-the-war  trade.  What 
one  might  designate  as  super-trust  organisations  are  being 
formed  by  our  future  competitors ;  great  institutions,  whose 
ramifications  are  world-wide,  are  already  purchasing  and  stor- 
ing raw  materials  for  after-the-war  purposes.  In  this  country 
we  have  a  very  large  number  of  small  firms,  and  the  opinion 
is  often  expressed  that  these  small  men  must,  in  the  fierce  com- 
petition which  is  coming,  go  to  the  wall.  It  is  felt  that  we 
shall  have  to  meet  the  super-organisations  of  our  competitors 
with  super-organisations  of  our  own. 

Presiding  at  the  last  annual  meeting  of  the  London 
and  Provincial  Bank  as  a  separate  concern,  Mr.  J.  W. 
Cross  estimated  that  the  National  Debt  at  the  end  of 
the  current  year  would  probably  amount  to 
;^,'7, 500,000,000,  and  involve  an  annual  interest  charge 
of  ;^3g2,ooo,ooo,  with,  in  addition,  a  hugo^nmount  of 
pensions  to  pay — and,  he  might  have  added,  O'f  in- 
creased salaries  in  all  departments  of  the  Government 
as  well  as  in  the  Army  and  Navy.  Well  might  he 
declare  that  this  enormous  expenditure  and  the  neces- 
sary gradual  reduction  of  the,  debt  can  only  be  met  by 
capital  and  labour  working  in  harmony — and  they  do 
so  work  much   more  often   than   we  often   give  them 


liiH 


Zbc  Jnvestors'  IRevtew. 


February  2,  1918. 


credit  for.  Mr.  Cross  also  gave  some  interesting  par- 
ticulars about  the  business  in  South  Wales,  which  had 
had   another  year  of   remarkable  prosperity  : — 

With  regard  to  South  Wales,  another  yeai  of  remarkable 
prosperity  was  reported.  Trade  in  coal  had  been  less,  and  there 
has  been  a  reduction  in  tin  plates  and  galvanised  sheets,  but 
there  had  been  extraordinary  activity  in  iron  and  steel,  the 
production  of  which  had  undoubtedly  greatly  exceeded  any  past 
record.  The  most  difficult  of  problems  had  been  that  of  pro- 
viding sufficient  shipping.  In  the  circumstduces,  it  was  not 
surprising  that  the  price  of  ships  had  reached  hitherto  unheard- 
of  heights,  and  that  in  freights  there  had  been  new  records. 
The  dry  dock  companies  had  done  an  immense  amount  of  work, 
the  number  of  vessels  repaired  in  the  South  Wales  docks  being 
about  2,500,  with  a  tonnage  of  about  6,000,000  gross.  Large 
extensions  had  been  made  in  the  spelter  works  in  the  Swansea 
district,  and  it  was  estimated  that  ultimately  the  output  of 
spelter  would  be  at  least  five  times  as  grtat  as  before  the  war. 
Generally,  they  might  hope  to  se>e  a  further  expansion  of  busi- 
ness in  South  Wales  when  peace  came. 

At  the  meeting  of  the  London  County  and  West- 
minster Bank,  the  chairman,  Mr.  Walter  Leaf,  had  a 
word  to  say  about  Government  control  of  trade,  which 
deserves  bearing  in  mind.  We  are  all,  perhaps,  rather 
given  to  looking  round  for  changes  to  follow  the  war, 
and  sometimes  hail  arrangements  as  permanent  which 
are  in  reality  quite  temporary.  We  have  never  sub- 
scribed to  the  doctrine  that  the  trade  of  this  country 
could  be  beter  organised  and  carried  on  under  direct 
Government  supervision  than  by  the  traders  them- 
selves, and  are  glad  to  see  that  Mr.  Leaf,  as  doubtless 
other  bankers,  sees  eye  to  eye  with  us  in  this  important 
question  of  policy  ;  for  to  sit  down  and  fold  the  hands, 
beguiled  by  the  notion  that  trade  will  be  all  right  after 
the  war  because  this  and  that  "  Government  Depart- 
ment "  will  see  everything  properly  carried  on  would 
be  altogether  fatal.  Merchants  and  manufacturers 
must  constitute  their  own  guiding  organisations,  and 
in  doing  so  will  do  well  to  enlist  the  banker  as  their 
ally  from  the  first.  Trade  will  have  to  be  conducted 
more  economicallv  after  the  war  than  it  has  ever  been. 
Competition  will  have  to  be,  if  not  avoided,  kept  under 
control  and  directed  to  definite  ends,  not  necessarily 
antagonistic,  but  in  harmony  with  requirements  : — 

Dealing  with  the ,  question  of  the  Government  control  of 
trade,  Mr.  Leaf  said  they  must  all  recognise  that  such  control 
was,  in  the  present  emergency,  inevitable,  but  they  could  not 
view  without  some  alarm  the  probably  permanent  results  of  some 
steps  which  were  being  taken,  perhaps  with  the  idea  of  retracing 
them  in  the  period  of  reconstruction.  If  so,  he  feared  that  the 
idea  was  shortsighted  and  fallacious.  He  would  mention  two 
instances.  The  whole  future  of  the  labour  question  was  in  the 
melting-pot,  and  on  the  solution  arrived  at  would  depend  the 
prosperity  of  the  country,  and  therefore  ivf  the  banks,  after  the 
war  was  at  an  end.  It  could  hardly  \>e  said,  he  feared,  that  the 
recent  action  of  the  Government  in  the  wages  question  was  of 
good  augury,  or  promised  anything  in  the  way  ol  real  settlement 
in  the  near  future.  Another  direction  in  which  Government  De- 
partments had  been  active  caused  the  directors  much  appre- 
hension. He  alluded  to  what  appeared  to  have  been  adopted 
as  a  deliberate  policy — the  extinction  of  the  merchant,  with  the 
view  of  bringing  directly  together  the  producer  and  the  cus- 
tomer. That  was  an  object  which  might  commend  itself  at  first 
sight  to  the  amateur  ;  it  looked  like  sn  economy  and  a  simpli- 
fication. To  him  it  looked  rather  like  a  return  to  primitive 
conditions  of  trade  unsuited  to  our  modern  requirements.  To 
strike  at  the  merchant  was  to  aim  a  blow  at  the  world-wide  pre- 
eminence of  London. 

The  chairman  of  Parr's  Bank,  Mr.  Cecil  Parr,  got 
rather  into  hot  water  with  some  critics  by  stating  that 
in  his  view  "  the  funding  of  the  present  floating  debt 
must  within  a  measurable  time  be  effected  by  another 
loan."  "  Nothing  of  the  sort,"  he  was  told.  "The 
Government  has  no  intention  of  raising  another  loan 
after  the  pattern  of  last  year's  big  issue,"  and  perhaps 
the  Government  can  hold  a  while  yet  to  this  position. 
We  hope  it  can,  because  the  short-dated  security  is 
much  the  handier,  and  safer  for  the  investor.  But 
how  long  is  the  war  going  to  last?  If  it  ends  this  year 
then  a  funding  optiration  will  probably  have  to  be 
■  taken  into  consideration  next  year  embracing  all  varie- 
ties of  debt  except  those  represented  by  securities 
maturing  soon.  If  earlier,  then  the  funding  must  come 
sooner.  So  there  is  no  need  to  be  ill  pleased  with  Mr. 
Parr,  who  did  not  say  only  that  in  his  speech,  and  was 
certainly  the  reverse  of  unfriendly  to  Government 
finance.  In  one  particular  he  appeared  to  indicate  that 
Parr's  is  striking  out  in  a  new  direction  and  trying  to 


fulfil  some  of  the  functions  of  those  rural  or  "  agri- 
cultural "  banks  often  talked  about  but  never  coming 
into  effective  existence.  This  is  what  he  said  about 
that  and  other  matters  : — 

They  liad  come  under  special  arrangements  for  the  lending  of 
money  to  farmers,  through  the  co-operation  of  the  County  War 
Agricultural  Committees,  though  in  that  respect  farmers  had 
done— or  ought  to  have  done — so  well  that  the  ^reat  majority  of 
them  had  no  need  to  ask  assistance  from  their  bankers,  but 
should  rather  have  helped  to  swell  the  deposits  of  the  banks 
with  the  profits  they  had  made.  In  addition  to  all  this,  they  had 
allowed  their  patriotism  to  override  their  banking  instincts,  and 
not  only  had  they  encouraged  customers  to  subscribe  their 
balances,  but  had  advanced  large  sums  to  those  vho  had  no 
available  balances.  Much  of  this  latter  money  had  come  back. 
But  with  the  best  will  in  the  world,  they  could  not  make  their 
deposits  do  duty  twice  or  three  times  over.  They  could  not  lend 
them  to  customers  for  subscription  to  war  funds  as  well  as  ad- 
vance them  for  the  production  01  munitions  and  food,  and  at 
the  same  time  subscribe  themselves  to  the  War  Loan.  Yet  some 
newspapers  were  never  tired  of  letting  them  know  that  they 
ought  to  do  all  three. 

As  illustrative  of  the  loyal  and  effective  assistance 
given  by  banks  to  the  Government  in  enabling  it  to 
carry  on  the  war,  the  following  information  given  at 
the  meeting  of  Wiilliams  Deacon's  Bank  by  the  chair- 
man, Mr.  Gerard  Powys  Dewhurst,  is  worth  promi- 
nence : — 

The  bank's  customers  applied  for  over  16J  millions  of  the 
War  Loan — a  figure  equal  to  68  per  cent,  of  the  deposits  at  that 
time.  To  enable  them  to  do  this  the  directors  sanctioned  ad- 
vances of  over  ;^6,ooo,ooo,  and  to-day  less  than  cne-thi!«l  of 
those  loans  were  outstanding.  It  mig:it  help  them  to  visualise 
the  work  involved  if  he  told  them  that  close  on  18,000  separate 
applications  f>assed  through  the  bank,  in  addition  to  which  they 
had  issued  over  400,000  of  War  Savings  certificates.  These 
figures  were  quite  exceptional,  and  the  directors  saw  evidence 
that  it  helped  their  own  business  by  attracting  customers ;  in 
fact,  the  broad-minded  and  helpful  policy  of  the  bank  towards 
tiade  generally  throughout  the  war  had  brought  a  most  valuable 
accession  of  new  business,  and  had  added  materially  to  the 
bank's  reputation.  They  realised  that  the  activity  of  trade,  and 
the  higher  earnings  of  the  working  classes,  had  led  to  the  open- 
ing of  many  new  banking  accounts  all  over  the  country  ;  but 
when  he  told  the  shareholders  that  the  net  inciease  of  the  bank's 
accounts  last  year  was  more  than  four  times  the  increase  of 
1908,  and  three  and  a-half  times  that  of  igu,  the  directors  felt 
they  could  justly  congratulate  themselves,  and  it  was  not  only 
in  actual  numbers,  but  in  the  magnitude  and  importance  of 
new  accounts,  that  the  war  period  had  brought  record  increases, 
in  spite  of  the  fact  that  they  had  opened  no  new  offices. 

Mr.  Garfit  has  always  something  worth  attending  to 
to  say  at  the  meetings  of  the  Capital  and  Counties 
Bank,  whose  chairman  he  is,  and  in  his  speech  last 
week  he  described  the  National  War  Bonds  as  "  the 
most  lucrative  investment  of  the  highest  class  that 
could  be  obtained  anywhere,"  going  on  to  describe  the 
facilities  the  hank  had  given  to  its  clients  to  enable 
them  to  apply  for  these  bonds,  and  the  following  obser- 
vations on  the  relative  usefulness  of  large  and  small 
banks  are  opjx>rtune  : — 

The  question  was  still  occasionally  raised  that  the  present 
large  banks  did  not  give  the  same  facilities  that  the  old  private 
banks  used  to  do  from  their  knowledge  of  the  character  and 
ability  of  those  with  whom  they  had  to  deal,  but  tins  criticism 
was  really  based  far  more  on  sentiment  than  on  fact,  and  in 
many  cases  the  old  link  was  maintained  by  some  of  the  partners 
and  managers  being  appointed  local  directors,  while  every  case 
referred  to  head  office  was  carefully  considered  and  kkans  as 
freely  made  as  before.  At  the  same  time,  the  needs  of  large 
limited  companies  and  important  firms,  and  oi  those  customers 
who  required  foreign  and  exchange  faciliticsj  were  met  in  a 
way  that  was  not  possible  with  small  institutions.  Much  atten 
tjon  had  lately  been  given  by  the  general  oublic  to  the  important 
•banking  amalgamations  that  had  taken  place.  The  Capital  and 
Counties  Bank  was  largely  made  up  of  amalgamations,  and  the 
present  directors  were  no  less  favourable  to  fusions  of  the  kind 
carried  out  on  sound  and  beneficial  terms  than  were  their  pre- 
decessors. It  might  be  a  matter  upon  which  opinions  differed 
whether  the  period  of  a  great  war  was  the  best  time  to  choose 
for  carrying  out  transactions  of  the  kind,  and  on  that  subject  he 
expressed  no  opinion.  He  would  only  say  that  they  had  no 
leason  to  be  otherwise  than  fully  satisfied  with  the  present  posi- 
tion and  prospects  of  the  bank,  and  he  thought  the  shareholders 
might  feel  assured  that  the  bank,  with  approximately  /6o,ooo,ooo 
of  lodgments,  was  scarcely  a  minnow  among  the  Tritons  with 
which  it  had  to  compete. 

[Several  important  speeches  remain  to  be  dealt  with 
next  week.] 

Unquestionably  the  policy  expounded  by  General  Smuts  the 
other  day  is  the  only  practicable  one  for  Africa.  There  must  be 
no  re-establishment  of  German  slave  colonies  in  that  continent 
if  the  peace  of  the  world  is  to  be  made  secure. 


February  2,  1918. 


Xtbe  Jnveerors'  "Kevlew. 


"5 


By-the-Way  War  Notes. 

Free  democracies  everywhere  ought  to  pass  votes  of 
thanks  to  the  German  Chancellor,  Count  Hertling,  and 
the  Austrian  Prime  Minister,  Count  Czernin,  for  their 
.speeches.  The  two  men  play  the  role  of  Box  and  Cox 
in  the  play  of  Teutonic  bamboozlement.  It  is  quite  a 
mistake  to  regard  the  Austrian  attitude  as  expounded 
by  Count  Czernin  as  being  less  insolently  grab-all  than 
the  Prussian.  The  language  is  more  plushed,  but  the 
core  is  as  hard,  the  brutality  of  the  covetousness  as  in- 
satiable. "  Let  us  hold  on  to  whatever  territory  we 
have  overrun,  stick  fast  to  all  mineral  wealth  now  in 
the  lands  occupied  by  us,  deny  every  claim  which  inter- 
feres with  the  right  of  the  strong,  and  mock  the  world 
with  words,  words,  and  delusive  offers  of  peace."  It 
is  well  to  know  this.  There  can  be  no  peace  with 
Powers  who  put  forward  functionaries  of  this  type  to 
take  leading  roles  in  the  farce,  "  Peace  by  Arrange- 
ment." 

Is  our  rather  pharisaical  Press  right  in  assuming  an 
attitude  of  superior  virtue  towards  those  Clyde  en- 
gineers who  are  proving  recalcitrant  towards  "  comb- 
ing out  "?  Our  impression  rather  is  that  the  rebellious 
engineers  may  be  fundamentally  in  the  right,  although 
much  too  premature.  We  are  all  agreed  that  the  peace 
we  are  now  striving  for  must  be  a  peace  of  peoples  if 
it  is  to  be  worth  ten  pfennig  in  German  discs  of  stamped 
millboard.  But  how  is  a  democratic  peace  arrangeable 
with  such  Governments  as  those  of  the  Habsburg  and 
Hohenzollern  tyrannies?  The  excited  workmen  ought 
to  ponder  well  over  that  question,  and  we  feel  sure  that 
when  they  have  done  so  they  will  be  as  heartily  in 
favour  of"  a  fight  to  the  finish  "  as  the  great  majority 
of  their  fellows  are  already.  With  whom  would  they 
negotiate  an  "  immediate  armistice  "? 

We  can  say  nothing  to  the  purpose  about  the  reason- 
ableness of  the  claim  put  forward  that  the  "dilutees  " 
should  be  combed  out  first.  That  is  a  matter  for 
arrangement  between  the  Government  and  the  men  who 
toil  in  the  workshops  that  serve  it.  We  do,  however, 
think  that  the  clamour  for  more  men  and  yet  more 
men  has  been  carried  too  far.  It  seems  to  us  to  be 
verging  on  hysteria  to  keep  harping  on  this  one  point, 
as  so  manv  of  our  Press  volunteer  philosophers  do.  One 
of  them,  the  ex-military  correspondent  of  the  Times, 
has  grown  rabid  on  the  point.  His  one  idea  seems  to 
lie  that  we  are  fighting  "  a  land  war,"  and  a  land  war 
alone.  Therefore,  the  Western  front  on  which  the 
British  armies  are  massed,  as  the  one  vital  point  in  the 
field  of  strife,  must  be  crowded  with  men,  more  men. 
A  misconreotion  so  grotesque  entertained  by  a  man  so 
able  aonears  to  illustrate  the  wisdom  of  the  saying, 
"  Evil  communications,"  &c. 

This  is  a  siege,  not  an  ordinary  war  of  mana'uvre 
and  open  battle,  and  the  sea  power  of  the  Allies,  especi- 
ally ours,  plays  fully  as  vital  a  part  in  this  siege  as  our 
land  armies.  Moreover,  amateurs  of  this  kidney  ignore 
the  United  States  of  America,  treat  its  mighty  effort  as 
if  no  better  than  a  "  cinema  show."  One  would  think 
to  read  the  essays  of  Carmelite  Street  and  Printing 
House  Square  super-strategists  that  America  had 
nothing  to  do  with  the  real  fighting,  whereas  it  is  already 
very  much  otherwise,  and  becomes  more  and  more  other- 
wise every  week.  As  Mr.  Baker  has  been  telling  us  from 
Washington,  the  United  States  will  soon  have  500,000 
soldiers  in  Europe,  and  this  army  will  presently  take 
its  full  share  in  the  fighting  in  France.  Within  an- 
other year  there  will  be  another  1,500,000  men  fully 
ti  pined  and  capable  of  sustaining  the  fighting  strength 
of  the  American  army  in  Europe  almost  indefinitely. 
That  being  so,  why  such  feverish  clamouring  for  more 
and  yet  more  men  to  be  raised  here,  men  most  of  whom 
cannot  be  spared  from  our  industries  without  endanger- 
ing the  position  of  these  industries  not  only  during  the 
war,  but  after  the  war  ends?  Doubtless  it  would  suit 
the  Germans  that  we  should  exhaust  ourselves  by 
"offensives  "  before  the  Americans  are  ready,  but  why 
should  we  nlay  into  their  hands? 

Sir  Dousjias  Haig  has  never  joined  in  this  clamour. 
He  wants   more  men,  to  be  sure,   always  must  while 


the  war  lasts  and  siege  fronts  extend,  but  not  half-a- 
million  more  all  at  once — unless  a  great  offensive  should 
be  in  contemplation  this  spring.  But  there  can  be  no 
hurry  for  such  offensive.  We  have  no  skill  whatever 
in  military  strategy  or  tactics,  and  have  not  the  slightest 
ambition  to  emulate  those  wonderful  philosophers  re- 
tained by  the  Harmsworths,  who  plan  campaigns — in 
italics  and  large  capitals — and  move  armies  across 
deserts,  swamps,  and  mountains  with  a  speed  that  could 
not  be  exceeded  were  the  roads  they  had  to  travel  as 
smooth  as  the  sea  front  at  Eastbourne  or  St.  Leonards, 
and  win  battles  with  magical  facility  ;  but  we  do  not 
think  a  furious  offensive  should  be  necessary  this 
spring.  The  besieged  may  be  allowed  to  do  the  attack- 
ing, and  our  offensive  kept  well  within  bounds,  just  as 
it  is  now.  The  fighting  at  the  front,  indeed,  is,  owing 
to  the  sea.son  of  the  year,  a  model  at  present  of  what 
siege  warfare  ought  to  be — constant  harassment  of  the 
beleaguered,  unresting  energy  in  destruction  by  our 
air  forces,  which  are  constantly  growing  in  skill  and 
in  volume,  unceasing  devastation  by  our_  artillery 
wherever  assemblages  of  troops  can  be  discovered, 
depots  "  spotted  "  and  lines  of  communication  smashed. 

The  enemy  is  being  worn  down  all  along  the  Western 
front,  and  on  the  Italian  front  his  sufferings  this  winter 
must  be  indescribable.  And  this  week  the  Italian  Army 
has  assumed  the  offensive  with  brilliant  success  away 
up  amongst  the  hills  east  of  Asiago,  where  the  foe  has 
been  dislodged  and  pushed  back  with  the  loss  of  2,600 
prisoners  and  much  material  Charles  the  Needy  could 
ill  spare. 

Everywhere  within  the  beleaguered  empires  the  effect 
of  the  Allied  constriction  is  daily  becoming  more  visible. 
Suppress  as  they  may,  the  Prussian  military  martinets 
cannot  quite  hide  the  fact  that  the  population  they  de- 
ceive and  oppress  is  rapidly  yeasting  up  in  a  ferment 
of  revolt.  Strikes  have  broken  out  everywhere,  and  not 
least  among  the  munition  workers,  owing  to  the 
scarcity  of  food,  and  hunger  is  rapidly  bringing  the 
mind  of  the  masses  to  new  conceptions  of  duty,  of  right 
and  wrong.  Whether  Austria  or  Germany  is  in  the 
worse  plight  we  have  no  means  of  deciding,  but  both 
are  rotten  at  the  heart,  and  it  is  our  conviction  that  we 
have  merely  to  hold  on  immovable  with  an  unrelaxing 
grip  to  see  social  disintegration  and  anarchy  spread 
throughout  both  the  Hohenzollern  and  the  Habsburg 
Empires.  Then  they  may  be  conquered  without  artillery 
and  will  soon  be  at  our  mercy.  When  we  say  "  soon," 
it  may  be  a  matter  of  months,  or  of  a  year,  but  when 
the  collapse  our  successful  siege  must  produce  does 
come  about,  that  "peace  of  democracies"  men  talk 
and  dream  of  will  also  heave  in  sight.  We  shall  have 
done  then  for  good  and  all  with  word  jugglers  and 
mummers  who  now  play  the  game  for  tyrants  and  lie 
and  threaten  and  bluster  to  order. 

Of  incidents  in  the  beleaguerment  there  are  few  this 
week  that  demand  consideration,  for  we  cannot  always 
be  "storming  the  breach,"  but  the  Prussian  bullies 
have  favoured  us  with  two  attacks  from  the  air  this 
week,  both  on  London  and  the  eastern  lands  bordering 
the  Thames  estuary.  They  have  caused  the  death  and 
wounding  of  many  women  and  children  as  well  as  of 
men — all  civilians,  all  with  no  military  gain  whatever. 
The  display  was  borne  with  a  stoical  calmness  and  a 
deepened  sense  of  loathing,  that  was  all.  _  If  the 
abandoned  adversary  chooses  to  waste  what  is  left  of 
his  credit  and  manhood  in  this  fashion,  it  is  his  affair, 
only  he  will  have  to  pay  for  his  crimes.  Happily,  our 
defence  increases  in  efficiency,  and  on  the  w'ar  fronts 
we  demonstrate  it  daily  by  continuing  to  assail  German 
aerodromes,  munition  dumps,  and  so  forth  with  ever 
increasing  vigour  and  success.  That  is  the  best  way, 
and  most  effective  way,  to  combat  and  overcome  this 
particular  kind  of  fiendishness. 

This  week  our  losses  of  merchant  vessels  has  been 
more  than  double  that  of  the  preceding  week,  nine  ships 
of  1,600  tons  and  upwards  having  been  sunk  as  well  as 
six  smaller  vessels,  making  15  in  all,  against  seven  in 
the  week  ended  January  19' and  only  five  in  that  ended 
January  12.  A  fishing  vessel  was  also  sunk.  The 
enemy  submarines  have  come  back  from  their  bases  re- 


ii6 


^be  investors'  TRevtew. 


February  2,  1918. 


charged  with  new  torpedoes  and  oil.  They  may  be 
more  active  still  this  week.  'ITiese  fluctuations  must  be 
allowed  lor  in  spite  of  all  our  endeavours,  for  the  sea 
is  pathless  and  wide ;  but  by  and  by  the  pirates  may  get 
tired  of  drowning,  for  large  numbers  of  them  are  being 
drowned.  Had  it  not  been  so  there  would  have  been 
far  more  havoc  going  on  now.  It  is  far  too  great  all 
the  same,  and  every  effort  is  being  put  forth  to  end 
the  murder. 

Last  week  4,661  ships  came  and  went  at  our  ports, 
viz.,  2,352  entrances  and  2,309  clearances.  This  is  164 
more  than  in  the  previous  week  and  371  more  than  in 
the  week  ended  January  12.  TTie  sinkings  of  last  week, 
in  large  ships  alone,  are  exactly  equal  to  the  average 
for  the  whole  of  December.  Apparently  the  enemy's 
attention  is  being  turned  towards  the  West  Coast,  which 
may  mean  that  the  Channel  is  getting  too  dangerous  for 
them  ;  but  activity  in  the  Mediterranean  has  also  been 
unpleasantly  prominent,  and  we  have  to  lament  the  loss 
of  two  transports  with  over  800  lives.  One  of  our 
destroyers  also,  while  picking  up  the  survivors  from 
the  Aragon,  one  of  these  transports,  was  itself  tor- 
pedoed and  sunk.  No  large  French  merchant  ves.sel 
was  sunk  last  week,  but  three  of  less  than  600  tons 
were  torpedoed,  and  last  week  two  Italian  steamers  of 
over  1,500  tons  were  sunk  and  also  two  vessels  of  less 
than  100  tons.  One  Italian  steamer  damaged  by  the 
enemy  managed  to  reach  port.  Six  of  our  vessels  were 
unsuccessfully  attacked  last  week,  after  allowing  for 
the  two  attacked  the  previous  week,  but  only  now  added 
to  the  return. 

The  Arabs  continue  to  thrash  the  Turks  in  the  Land 
of  Edom,  on  the  Hadjez  Railway  east  of  the  Dead  Sea, 
and  elsewhere,  to  our  great  comfort. 

Officially  American  Headquarters  in  France  make  it 
known  that  the  total  capacity  of  the  ships  which 
formerly  flew  the  German  flag,  seized  by  the  United 
States  Government,  and  now  ready  for  sea,  is  approxi- 
mately 500,000  tons.  They  will  be  employed  mostly  in 
conveying  men  and  materials  of  war  from  America  to 
France,  and  we  hope  Herr  Ballin  and  his  fellow  ship- 
owners enjoy  the  spectacle.  That  little  man  must 
surely  think  vi'ith  chagrin  and  rue  sometimes  that  his 
Hamburg-American  steamship  enterprise  had  more 
chance  to  conquer  dominance  at  sea  and  escape  the 
impending  bankruptcy  in  the  peaceful  days  when  he 
browbeat  and  bullied  his  rivals  in  Antwerp,  and  played 
dictator  on  every  sea  route  upon  which  his  company's 
ships  interloped  than  it  will  ever  have  again. 
Thirteen  of  the  best  boats  in  the  "  Hapag  "  and  other 
fleets,  including  those  formerly  named  the  Grosser  Kur- 
fiirst,  the  Kaiser  Wilhelm  11. ,  the  Friedirich  der  Grosse, 
and  the  Kronprincess  Cecilie,  but  now  all  renamed,  will 
be  busy  henceforth  in  the  service  of  that  army  which  is 
massing  in  Europe  to  help  us  to  put  an  end,  we  hope 
for  ever,  to  the  tyranny  of  brute  force  among  men. 
Will  Germany  ever  get  the  ships  back?  No,  never. 
These  and  all  the  rest  she  still  has  will  not  be  enough 
to  make  good  the  damage  done  by  her  U-boat  assassins. 

American  Business  Notes. 

Amid  all  our  troubles  about  food  we  must  never  forget 
that  they  are  not  all  due  by  any  means  to  the  action 
of  the  enemy.  Lord  Rhondda  made  it  public  in  the  end 
of  last  week  that  in  December  3,000,000  lbs.  of  bacon 
and  4,000,000  lbs.  of  cheese  had  been  sunk  within  a 
month,  and  such  a  mass  of  food  lost  was  unquestionably 
a  source  of  embarrassment  in  reducing  the  supplies 
available  to  feed  the  home  population  after  the  re- 
quirements of  the  Army  and  Navy  had  been 
satisfied.  But  had  everything  been  normal  in 
the  United  States  we  .should  not  have  been  hurt 
much  even  by  such  a  destruction  of  valuable  food. 
Last  year's  harvest,  however,  was  indifferent  in  nearly 
all  our  food  reservoirs,  so  to  say,  especially  for  wheat. 
In  the  United  States,  for  example,  according  to  the 
latest  estimates  of  the  Department  of  Agriculture  in 
Washington,  the  harvest  of  wheat  was  almost  as  poor 
as  in  the  preceding  year,  the  aggregate  production 
1>eing  put  at  only  418,070,000  bushels,  the  smallest 
since  191 2,  and  62,000,000  bushels  less  than  1916.  Com- 


pared with  1914,  which  was  a  bumper  year,  the  shortage 
was  no  less  than  266,000,000  bushels,  and  the  United 
States  is  now  at  war,  therefore  in  the  same  position 
that  France,  Italy,  and  ourselves  occupy.  It  will  thus 
be  economy  all  round,  and  already  the  Food  Controller 
in  America,  Mr.  Hoover,  has  arranged  for  a  gradual 
increase  in  the  mixture  of  other  cereals  in  the  loaf.  It 
is  to  begin  with  a  substitution  of  5  per  cent,  of  other 
meals,  and  will  rise  to  one  of  20  per  cent. ;  that  is  to 
say,  only  80  per  cent,  of  L'nited  States  bread  will  after 
a  little  time  consist  of  wheat  flour.  Even  so,  as  Mr. 
Hoover  points  out,  the  bread  of  the  United  States  will 
be  more  wheatcn  than  ours. 

A  short  supply  meeting  an  increased  demand  inevit- 
ably raises  prices,  and  it  is  interesting  to  note  that, 
according  to  the  price  index  of  the  Department  of 
Agriculture  made  on  November  i  last,  the  price  of  all 
crops  shows  a  rise  of  46.1  per  cent,  on  the  year  before. 
It  is  1 16.1  per  cent,  higher  than  1915,  and  104.3  P^r 
cent,  above  the  average  of  the  five  years  191 1  to  1915 
inclusive.  Production  in  the  same  time  has  risen  only 
1 1. 1  per  cent,  last  year  compared  with  1916,  and  is 
only  4.1  per  cent,  above  the  average  for  the  same  five 
years.  The  farm  price  of  wheat  on  December  i  was 
$2,009  a  bushel,  compared  with  $1,603  '"  1916,  and 
with  a  five  years'  average  of  87.5  cents.  Maize  had 
risen  to  $1,283  PC""  bushel,  as  compared  with  88.9  cents 
in  1916,  and  an  average  of  59.7  cents,  and  oats  had 
risen  to  66.9  cents  compared  with  52.4  and  38.5  cents 
on  the  five  years'  average.  So  it  is  with  everything 
else.  The  average  of  cotton,  for  instance,  for  the  five 
years  191 1  to  1915  inclusive  was  to  cents  per  lb.,  where. 
as  for  the  past  season  it  was  27.7  cents.  The  crop  of 
maize  or  Indian  corn  was,  however,  the  highest  ever 
gathered,  and  is  now  officially  stated  to  have  amounted 
to  3,159,494,000  bushels.  The  increase  was  due  to 
some  extent  to  the  greater  extension  of  ground  cropped, 
which  was  14.2  per  cent,  above  that  of  the  previous 
vear.  Altogether  the  cereal  crops  of  the  United  States, 
including  maize,  wheat,  oats,  barley,  and  rye,  aggre- 
gated last  vear  ;, 666,728,000  bushels,  which  was  almost 
1 ,000,000,000  bushels  larger  than  the  yield  of  the  same 
grains  in  the  previous  year,  and  was  due  almost  entirely 
to  the  just-mentioned  much  heavier  yield  of  maize,  but 
it  was  still  nearlv  340,000,000  bushels  below  the  highest 
previous  yields.'  In  1915,  too,  the  aggregate  quantity 
of  grain  produced  was  upwards  of  190,000,000  bushels 
greater  than  last  year,  consequently  it  is  anything  but 
matter  of  astonishment  that  there  should  be  some  pinch 
felt  between  now  and  next  harvest,  submarines  or  no 
submarines. 

The  Agricultural  Department  also  compiles  an  esti- 
mate of  the  value  of  the  crops  to  their  producers,  and 
from  this  point  of  view  last  year  is,  one  may  say,  too 
satisfactory,  the  total  value  to  the  farmer  being  esti- 
mated at  $6,760,081,000,  whereas  in  1916  it  was  barely 
$4,177,000,000,  and  in  1913  it  was  small  as 
$2,864,000,000.  Add  the  potato  crop,  which  was 
442,536,000  bushels  la.st  year,  the  heaviest  in  the 
countrv's  history,  and  the  farmer  in  America  would 
seem  to  be  at  the  very  highest  pitch  of  pros- 
perity. He  should  therefore  be  well  able  to  pay 
his  full  share  of  the  augmented  taxation. 


REPUBLIC  OF   NICARAGUA  STERLING   LOAN 
OF  1909. 


The  Council  of  Foreign  Bondholders  give  notice  that  they  will 
be  prepared  on  and  after  WEDNESDAY  NEXT,  the  6th  instant, 
to  deliver  Funding  Certificates  in  respect  of  75  per  cent,  (less  tax) 
of  the  Coupons  due  1st  July,  1917,  and  1st  January,  191R,  on 
Bonds  of  the  above  Loan  against  presentation  of  the  Tickets 
issued  on  payment  of  25  per  cent,  of  such  coupons  in  cash. 

In  accordance  with  the  directions  of  the  Board  of  Inland 
Revenue,  25  per  cent,  of  the  ainount  of  the  Funding  Certi6cates 
issued  will  be  deducted  in  respect  of  income-tax  in  all  cases 
except  those  of  foreign  holders  who  ledge  the  required  af&davit 
for  exemption. 

JAMES  P.  COOPER, 

17,  Moorgate  St.,  Secretary. 

Ix)ndon.  E.C  2. 
February  1st,  1918. 


February  2,  1918. 


^be  5nv>e6tor8'  TRevtew. 


117 


THE  JOHANNESBURG   CONSOLIDATED  INVEST- 
MENT  COMPANY,   LIMITED, 

announces  that  owing  to  the  irreguiarity  and  delay  in  the  mails,  the 
issue  of  the  quarterly  reports  to  the  Shareholders  of  the  Mines 
of  the  Barnato  Ciroup  is  discontinued  for  the  time  being. 
In  place  thereof  the  following  is  a  cabled  summary  of  the 
■quarter's  operations  as  advertised  in  the  press. 
10  and  11.  Austin  Friars.  London,  E.G. 2. 
30tli  January,  1918. 

GOVERNMENT    GOLD     MINING    AREAS 
(Moddepfontein)    Consolidated,     Limited. 

(Incorporated  in  the  Transvaal  ) 
Report  for  Quarter  ended  31st  Oece-nber,  1917. 

Tons   Crushed,  309,900   tons.     Z""^  '°"'  ba^ed  °ri 

Tonnage  Crushed 
Total  Working  Revenue     ...£464,815        ...        £110    0 
Total  Working  Costs  ...      290,996       ...  0  18    9 


£0  11     3 


II 


Working  Profit £173.819 

Sundry  Revenue 1,524 

Total  Profit  for  the  quarter    £175.34} 

No  allowance  has  been  made  in  the  above  for  the  Government's 
i  share  of  the  Profits. 

The  expenditure  on  Capital  Account  amounted  to  £23,352. 

.'in  acute  shortage  of  native  labour  was  experienced  in  October, 
but  there  was  a  slight  improvement  in  November  and  December 

As  compared  with  the  previous  quarter,  crushing  shows  a  de- 
crease of  16,600  tons.  Working  costs  were  reduced  by  6d  per  ton. 
Jc  S-fo"'^'^*'  °^  "^"^  °'''^  milled  was  slightly  lower.  Gross  Profit  was 
£5,978  less  than  last  quarter. 

The  development  footage  sampled  totalled  8,280  feet,   and  gave 

f  Vo  J° *'"^  results  :— Payable  4,480  feet,  having  an  average  value 

-of  12.7  dwts  over  50  inches  of  reef.     Reef  partly  exposed  110  feet, 

f  havmg   an   average   value   of   2.4   dwts    over   56  inches  of  reef. 

unpayable  1,690  feet,  having  an  average  value  of  3.5  dwts  over  26 

inches  of  reef. 

The  Payable  Ore  Reserves  are  now  being  recalculated.  It  is 
I  ann'nnif'^  "'^'  "^^  payable  reserves  have  bee.i  increased  by  over 
'800,000  tons  during  the  present  quarter. 

Plans  and  estimates  are  being  prepared  to  enlarge  the  reduction 
plant  by  5  additional  Tube  Mills,  with  necessary  extension  to 
■cyanide  plant. 

'  --T!]'^  addition   will   bring   the   crushing   capacity   up   to  about 
135,000  tons  monthly. 

Dividend  No.  1  of  12J  per  cent,  (2s  6d  per  share)  has  been  de- 
■<;lared  payable  to  shareholders  registered  at  31st  December,  1917. 

RANDFONTEIN      CENTRAL      GOLD      MINING 
COMPANY,     LIMITED. 

(Incorpor.ittd  in  the  Tr.insva:il.) 
Report  for  Quarter  ended  31  »t  December,  1917. 

Tons  Crushed,  500,960  tons.     4.^"  '°"  based  oii 

Tonnage  Crushed 
Total  Working  Revenue      ...     £586,896     ...  23      5 

Total  Working  Costs    489,029     ...  19      6 

Working  Profit       £  97,667    . 

Sundry  Revenue  3,338 

Total  Profit  for  the  quarter  £101 ,205 

"No  allowance  has  been  made  in  the  above  for  Colonial  Taxation. 

The  expenditure  on  Capital  Account  amounted  to  £75,459,  and 
Debenture  Interest  £39,513. 

As  compared  with  the  previous  quarter  crushing  shows  an 
increase  of  8,610  tons.  Working  costs  w  re  reduced  by  5d.  per  ton. 
".The  recovery  value  was  about  lOd.  per  ton  lower. 

Gross  Profit  shows  a  reduction  of  £10,462. 

Shaft  sinking  accomplished  totalled  1,407  feet. 

The  development  footage  sampled  totalled  18,985 feet,  and  gave 
■the  following  results  :— Payable  14,695  feet,  having  an  average 
-va'ue  of  21  6  dwts.  over  19  inches  of  reef.  Unpayable  4,290  feet, 
iaving  an  average  value  of  8.2  dwts.  over  21  inches  of  reef. 


3    11 


VAN     RYN     DEEP,     LIMITED. 

(I   corporated  in  the  Transvaal.) 
Report  for  Quarter  ended  31st  Deo 

134,060   tons. 


£290,325 
130,298 

£160,027 
5,083 

£165,110 


:mber,  1917. 

Per  ton,  based  on 
Tonnage  Crushed 
43      4 
19      5 


23    11 


t 


Tons  Crushed 

Total  Working  Revenue     .. 
Total  Working  Costs    

Working  Profit      

Sundry  .revenue    

Total  Profit  for  Quarter 

No  allowance  has  been  made  in  the  above-  for  Colonial  Taxation. 
The  expenditure  on  capital  account  amounted  to  £4,926. 
^    As  compared  with  ttie  previous  quarter  the  crushing  shows  an 
[increase   of  4,850   tons.      Costs  and   grade  were  practically  un- 
ihanged      The  Gross  Profit  was  increased  by  £6,503. 

Plans  and  estimates  are  being  prepared  for  the  addition  of  10 
Stamps  and  a  Tuoe  Mill,  with  the  necessary  Cyanide  plant.  The 
construction  will  be  put  in  hand  at  an  early  da  e. 

The  development  footage  sampled  totalled  1  331  feet,  and  gave 
■the  following  results  :— Payable  1 ,2G2  feet,  having  an  average  value 
of  34.4  dwts.  over  20  inches  of  reef.  Unpayable  69  feet,  having  an 
average  value  of  8.1  dwts.  over  13  inches  of  reef. 

Dividend  No.  9  of  22J  per  cent.   (4s.  6d.  per  share)  has  been 


— .    ^    „.   ^—'i   f^'    v..>iii.    \T3.    uu.    ^ci    sutiic;    lias  ucen 

<leclared  payable  to  shareholders  registered  at  31st  December,  1917. 


CONSOLIDATED    LANGLAAGTE    MINES, 
LIMITED. 

(Incorporated  in  the  Transvaal.) 

Report  for  Quarter  ended  31  st  December,  1917. 

Tons  Crushed,  129,150  tons.     ''^"^  '°"  ^,*^<J.  7 

Tonnage  Crushed 

Total  Working  Revenue       ...     £168,469     ...  26      1 

Total  Working  Costs    122,425     ...  19      0 


Working  Profit      ...    . 

Sundry  Revenue     ... 
Total  Profit  for  quarter 


£46,044 
510 

£46  554 


No  allowance  has  been  made  in  the  above  for  Colonial  Taxation, 
The  expenditure  on  Capital  Account  amounted  to  £5,182,  and 
Debent  re  Interest  £1,719. 

Operations  were  considerably  handicapped  owing  to  the  continued 
shortage  of  native  labour. 

As  compared  with  the  previous  quarter  crushing  was  decreased 
by  15,150  tons.  Costs  were  Is.  lOd.  per  ton  higher.  The  recovery 
value  was  improved  by  over  lOd.  per  ton.  The  Gross  Profit  was 
£11,540  less  than  last  quarter. 

The  East  Incline  Shaft  was  sunk  65  feet  to  a  total  depth  of 
4,286  feet.  The  West  Incline  Shaft  15  feet  to  a  total  depth  of 
3,710  feet. 

The  development  footage  sampled  totalled  3,632  feet  and  gave  the 
following  results  : — Payable  1,425  feet,  having  an  average  value  of 
22.4  dwts.  over  15  inches  of  reef.  Unpayable,  2,207  feet,  having  an 
average  value  of  6.5  dwts.  over  14  inches  of  reef. 

0  vidend  No.  9  of  7J  per  cent,  (Is.  6d.  per  share)  has  been  declared 
payable  to  shareholders  registered  at  the  31st  December,  1917. 

WITWATERSRAND     GOLD     MINING     CO.,     LTD. 

(Incorporated  in  the  Transvaal.) 
Report  for  Quarter  ended  31  st  December,  1917. 

Tons  Crushed,  104,615  tons.     Per  ton,  based  on 

Tonnage  Crushed, 
Total  Working  Revenue      ...     £129,274     ...  24      SJ 

Total  Working  Costs 93,729     ...  17    11 


Working  Profit 

Sundry  Revenue   ... 


£35,545 
4.896 


6      9i 


Total   Profit  for  quarter       £40,441 

No  allowance  has  been  made  in  the  above  for  Colonial  Taxation. 

The  expenditure  on  Capital  Account  amounted  to  £4,256. 

As  compared  with  the  previous  quarter,  crushing  shows  a 
decrease  of  12,535  tons. 

Working  costs  were  mcreased  by  18.  3d.  per  ton. 

The  grade  of  the  ore  milled  was  9d.  per  ton  higher,  but  the 
Gross  Profit  was  £6,776  less  than  last  quarter. 

The  principal  reason  for  the  decreased  profit  is  the  shortage  of 
native  labour.  Other  factors  are  the  increased  costs  of  imported 
stores,  and  the  fact  that  the  reef  in  outcrop  section  of  the  Mine  is 
becoming  exhausted,  making  the  mill  dependent  upon  the  South 
Section  of  the  bulk  of  the  ore  mined.  The  rock  here  is  much 
harder  than  in  the  upper  levels ;  this  greatly  reduced  fathomage 
broken  per  shift,  thus  accentuating  shortage  of  native  labour. 
Under  normal  conditions  the  reduction  plant  is  capable  of  dealing 
with  45,000  tons  monthly.  But  for  reasons  mentioned  the  profit 
would  have  been  much  higher. 

The  development  footage  sampled  totalled  1,560  feet,  and  gave 
the  following  results  ; — Payable  770  feet,  having  an  average  value 
of  10.4  dwts.  over  41  inches  of  reef.  Unpayable  790  feet,  having 
an  average  value  of  4.5  dwts.  over  40  inches  of  reef. 

The  Southern  Incline  Shaft  was  sunk  141  feet  to  a  total  depth 
of  2,794  feet. 

Dividend  ^0,  27  of  15  per  cent.  (33.  per  share)  has  been  declared 
payable  to  shareholders  registered  at  31st  December,  1917. 

LANGLAAGTE     ESTATE    AND     GOLD     MINING 
COMPANY,     LIMITED. 

(Incorporated  in  the  Tr.insvaal). 
Report  for  Quarter  ending  31  st  December.  1917. 

Tons  crushed,  126,660  tons.     ^^^^^ Crufhed"" 

Total  Working  Revenue £139,9?9     ...         22       1J 

Total  Working  Costs        113,673     ...        17    11i 


Working  Profit 

Sundry  Revenue       

Total  Profit  for  the  quarter 


£26,256 
506 


£26.762 

No  allowance  has  been  made  in  the  above  for  Colonial  Taxation  • 

The  expenditure  on  Capital  Account  amounted  to  £12,197. 

Owing  to  a  severe  short  ge  of  native  labour  crushing  was 
decreased  by  1,820  tons  as  compared  with  the  previous  quarter. 

Costs  were  reduced  by  lid.  per  ton.  The  grade  of  the  ore 
milled  was  is.  per  ion  lower. 

Gross  Profit  shows  a  decrease  of  £945. 

The  Hebbard  Incline  Shaft  was  sunk  173  feet  to  a  total  depth 
of  2,979  feet. 

The  d  velopment  footage  sampled  totalled  2,344  feet,  and  gave 
the  following  results: — Payable  1,478  feet,  having  an  average 
value  of  21.3  dwts  over  22  inches  of  reef.  Unpayable  866  feet, 
having  an  average  value  of  5.5  dwts  over  20  inches  of  reef. 

D.vidend  No.  54  of  5  per  cent.  (Is.  per  share)  has  been  declared 
payable  to  shareholders  registered  at  31st  December,  1917. 


ii8 


Zbe  Jnvestors'  IRevlew, 


February  2,  1918, 


Insurance    News. 

From  the  preliminary  olHcial  announcement  with 
regard  to  the  fusion  of  the  London  Assurance  Corpora- 
tion with  the  British  Law  Fire  Insurance  Co.  it  was 
difficult  to  see  how  the  new  shares  were  to  be  allocated 
among  the  British  J,aw  shareholders.  It  now  appears 
that  each  holder  of  25  IJritisli  Law  partly  paid  shares 
will  receive  one  ordinary  share  of  £2^  (;6i2  los.  paid) 
of  the  London  .'\ssurance,  25  preference  .shares  of  £1 
each  fully  paid,  cash  or  5  jser  cent.  War  Loan  amount- 
ing '"  ^68  19s.  2d.  A  holder  of  a  lesser  number  of 
shares  will  receive  payment  in  proportion.  With 
regard  to  the  fully  paid  .shares  each  holder  of  one  will 
receive  three  6  per  cent,  preference  shares,  and 
£3  3s.  2d.  cash  or  5  per  cent.  War  Loan.  Taking  the 
preference  shares  at  par  and  the  ordinary  shares  of  the 
London  .'V.'-surance  at  £60,  each  .share  of  the  British 
Law  will  receive  the  equivalent  of  £()  2s.  6d.  per  share. 
The  company  proposes  to  pay  in  March  the  usual  final 
dividend. 

It  is  suggested  in  some  quarters  that  the  fire  insur- 
ance companies  may  be  compelled  in  the  near  future  to 
raise  premium  rates  in  view  of  the  great  increase  on 
thj  expenditure  side  of  the  business.  At  the  same 
time,  it  would  appear  that  if  all  property  were  insured 
for  its  full  present-day  value,  current  rates  are  sufli- 
ciently  high,  as  the  companies  would  then  collect  larger 
premiums,  thus  enabling  them  to  meet  their  heavier 
outgo  for  expenditure.  Many  people  are  under-insured 
simply  because  they  have  lost  sight  of  the  greatly  in- 
creased cost  of  renewing  property  of  all  kinds  destroyed 
by  fire.  A  more  general  application  of  the  average 
clause  might  do  away  with  the  necessity  of  higher 
premiums.  But  property  owners  with  long  standing 
insurance  contracts  would  be  well  advised  thoroughly 
to  overhaul  them  in  order  to  find  out  whether,  in  order 
to  meet  the  changed  conditions,  an  increased  amount 
of  co'/-f,-r  is  now  desirable.  Amounts  covered  in  poli- 
cies effected  only  three  or  four  years  ago  arc  quite  in- 
adequate now  in  consequence  of  the  appreciation  of  all 
commodity  values.  Private  householders  should  also 
revise  the  value  of  everything  thev  possess,  if  they 
wish  to  be  in  a  position  of  being  able  to  replace  any 
losses  which  may  arise. 

The  profits  of  the  Colonial  Mutual  Fire  Insurance 
Co.  for  the  year  to  September  30  were  ;^4i5  higher, 
and  the  directors  have  decided  to  utilise  the  sum  of 
;^i 2,000  out  of  the  profits  and  establish  a  reinsurance 
reserve  fund.  The  ordinary  reserve  is  credited  with 
p^S'C>^5o  fagainst  £9,973),  making  the  total  ;^too,ooo, 
and  the  final  dividend  is  5  per  cent.,  making  10  percent, 
for  the  year,  against  6  per  cent.,  making  10  per  cent., 
for  the  previous  year,  a  balance  of  £1,976,  or  ;^9i7 
more,  Ijeing  carried  forward. 


DIVIDENDS     ANNOUNCED. 

Asbestos  Corporation  of  Canada. — Quarterly  $1  per  .sharp, 
or  at  rate  of  4  per  cent,  per  annum  on  the  preferred  .share.s, 
payable  Feb.  ic. 

Amalgamatea  Zinc  (De  Ravay's). — is.  per  share  to  be  paid 
Feb.  27,  less  tax  at  the  rate  of  4s.  in  the  /,.  A  year  ago  the 
same. 


Dritish  I..and  Co. — 2^  per  cent.,  less  tax. 

Hroken  Hill  Proprietary  Co. — (No.  180)  is.  per  shaie,  pay- 
able Feb.  20.  A  year  ago  the  directors  decided  not  to  declare 
the  usual  February  dividend  in  consequence  of  the  strike  of 
engineers. 

Hirraingham  Railway  Carriage  and  Wagon  Co. — At  the  rate 
of  IS  per  cent,  per  annum,  including  a  bonus  of  5  per  cent. 

Uritish  IJurraah  Petroleum. — Balance  for  year  ended  July  31 
last  of  4  4-sd.  per  share  (free  of  tax),  payable  March  i,  making 
yi  per  cent,  for  the  year. 

City  Offices  Co.— 63.  per  share  (less  tax)  on  the  ordinary 
shares,  being  at  rate  of  5  per  cent,  per  annum,  for  half-year, 
making  a  distribution  for  year  of  12s.  per  share  (less  tax). 

Cockermouth,  Keswick,  and  Penrith  Railway. — i  jjer  cent,  for 
past  half-year,  making  with  interim  dividend  2  per  cent,  for 
the  year. 

Cork,  Bandon,  and  South  Coast  Railway  Co. — si  per  cent,  per 
annum  on  the  ordinary  stock  for  the  half-year  ended  Decem- 
ber 31,  making,  witl;  the  interim  dividend,  3^!  per  cent,  lot 
the  year,  against  2^  per  cent,  for  the  previous  year,  when 
;f4,3io  was  carried  forward.  To  reserve,  £s'^>  against  ;^i,o2o 
to  reserve  and  locomotive  renewals  last  year. 

Dublin  and  South-Eastern  Railway. — 4  per  cent,  per  annum 
for  half-year  ended  Dec.  31  on  consolidated  preference  stock; 
;^5,goo,  against  ^^2,100,  to  general  reserve;  forward,  about 
^7,900,  against  £4,5°°- 

Explosives  and  Chemical  Products. — 10  per  cent,  for  year 
ended  June  30. 

Great  Northern  Railway. — 2^  per  cent,  on  deferred  and  "  A  " 
stocks  for  year,  the  same  as  for  previous  year ;  ;f  35,000  to 
general  reserve,  against  ^^25,000;  forward,  /i39,6i5,  against 
2140,684. 

Great  Ea.stern  Railway. — For  the  jast  half-year  on  the  ordi- 
nary stock  of  /^.2  5s.  per  cent.,  the  same  as  a  year  ago,  making, 
withwith  interim  of  5s.  per  cent.,  £2  los.  per  cent,  fcr  1917, 
the  same  as  for  1916;  forward,  about  ;<'ioi,ooo,  against  a  similar 
amount,  with  ^25.000  to  general    reserve,  against  nil. 

Great  North  of  .Scotland  Railway. — At  the  rate  of  i  per  cent. 
per  annum  on  the  deferred,  the  .same  as  a  year  ago,  with  ;£^7,236, 
against  ^'6,780,   forward. 

Highland  Railway. — 2J  per  cent,  on  ordinary  stock  for  year 
"t'7>  Z^3,ooo  to  general  reserve,  and  ;^i4,7SS  forward.  The 
dividend  for  1916  was  the  same. 

lnternation.il  Sponge  Importers.^ — Final  4  per  cent,  on  ordi- 
nary shares  for  six  months  ended  Dec.  31,  making  a  total  of 
6  per  cent,  for  year. 

London  and  Blackwall  Railway  Co.— For  the  past  year  at 
usual  rate  of  /'4  los.  per  cent,  per  annum  (less  tax) ;  the  balance 
dividend  of  £2  5s.  per  cent,  is  payable  on  Feb.  6. 

Lancashire  and  Yorkshire  Railway. — At  the  rate  of  2^  per 
cpnt..  makine  4i  per  cent,  for  the  year,  the  same  as  a  year  ago ; 
^30,600  forward,   a?ainst  /^40.8oo. 

Midland  Great  Western  Railway  of  Ireland. — At  the  rate  of 
3  per  cent,  per  annum  on  the  consolidated  stock  for  half-year 
ended  Dec.  31,  the  same  as  for  iqt6,  placing  ^10,000  to  general 
reserve,  aeainst  nil  ;    forward.   /iiy.dHz.   against  ^{"8.447. 

May  Mill  Spinning  Co. — Dividend  and  bonus  equivalent  to 
53'^   per  cent,   per    annum   for    past  half-year. 

Mid-die  West  Utilities  Co. — Regular  quart'-rlv  Si. 50  per  share- 
on  outstanding  preferred  capital  .stock,  payable  March  i. 

Perry  and  Co. — On  ordinary  shares  at  rate  of  10  per  cent. 
for  year  and  a  bonus  of  is.  per  share,  making  is  per  cent. 

Taff  VaV,  Railway. — At  the  rate  of  4  per  cent,  for  past  half- 
year,  making  3?  per  cent,  for  year,  against  34  per  cent,  for 
iqifi,  /n.S-i  forward,  /2o,ooo  to  special  reserve. 

Waihi  Gold  Mining  Co. — Interim  is.  per  .share,  free  of  tax. 
pavable  on   March  i. 

Zinc  Corporation. — First  interim  in  respect  of  profits  for  1917 
of  is.  6d.  per  share  on  both  the  preference  and  ordinary  shares, 
payable  on  March  27,  less  tax  at  3s.  6d.  in  (he  £. 


Vienna's  largest  flour  mill  at  Kaiser  Ebersdorf  is  said  to 
have  been  burnt  down  last  Saturday,  and  all  the  stocks  of  grain 
and  flour,  as  well  as  the  machinery,  destroyed.  The  damage 
is  said  by  the  Vor-^varts  to  be  practically  irreparable,  as  this 
mill  fjlayed  an  important  part  in  provisioning  Vienna. 


TD. 


STANDARD  BANK  OF  SOUTH  AFRICA,  L 

Bankers  to  the  Government  of  the  Union  of  South  Africa  in  Cape  Province;   t'>  the  Imperial  Government  in  South  Afl*ica  and  to  the  Administration 


Subscribed  Capital 
Paid-up  Capital... 


£6,194,100 
£1,548,525 


of  Rhod"si>. 


Reserve  Fund     ... 
Uncalled  Capital 


£2,000,000 
£4,6  7  5,575 


WM.  HFIERSON  ARRUTHNOT,  Ffq. 

SI  K  DAVID  M.  BARBOUR,  K.C.S.I.,  K.C.M.G. 

R0Bk,RT  E.  DICKINSON,  Esq. 

HoadOffioos   lO  OLEMENTS  LANE, 

New  York  Aiiency:— SB,  WALL  STREET.    Over  SSO 
EVERY  OESCRIPTIOM  OF  BANKING  BUSINESS  transacted  with 

the  Cane  I'lovince.  Nat;d,  Or.ing  I-rre  ^t  .le,  Tvv  svaal,  Riiclesia, 
Nya^aland.  Kas'  Afr  ca  Protectorate,  Uganda,  Zanzil'ar,  Po  tiiguese 
Ea«t  AfiHc  •.  Soiilh-West  A  ric  i  Protectorate,  and  th^-  Be  gian  Congo, 
and  wi'h  the  Rank'.s  Agencies  in  New  York  and  elsewhere. 

CURR'^NT  ACCOUNTS  are  opened  "-n  the  usual  terms. 

DEPOSITS  RECEIVED  for  fixed  periods  at  rates  which  may  be  ascer- 
tain-  (I  nn  :inn  i-ation, 

BILLS  NEGOTIATED  AND  COLLECTED. 

T'^e  "fhcrrs  0'  th'     ank  arc  houn  I  not  to  disdnse  the  trav^actioits  of  any 


Board     of     Directors. 

JAME      FAIKBAIRN  FINLAY,  Esq.,  C.S.I. 
HO'ACE  PI  EL    Esq. 
WILLIAM  SMART,  Esq. 


Rt.  Hon.  LORD  SYDENHAM,  G.C.S.L, 

G.C.M.r,.,  G.C.I  E.,  G  B.E. 
H.  L.  M.  TRITTON,  Esq. 


LOMBARD  STREET,  LONDON,  f.C.  4. 

Branches  and  Agencies  in  South  and  East  AfHoa* 

MAIL  AND  TELECAP    IC  REMITTANCES  ma  e. 

LETTERS  OF  CREDIT  AND  DRAFTS  gianied  on  the  branches  and 

Agenci-  s  of    he  Bank. 
THE  BA    K  ISSUES  CIRCULAR  LETTERS  OF  CREDrTavailabla 

in  all  parts  of  the  wotH. 
COMMERCIAL  LETTERS  OF  CREDIT  ISSUED. 
PURCHASE  AND  SALF  OF  STOCKS  AND  SHARES  effected. 
DIVIDENDS.      NNUITIES    &c  .  received. 
EX   CUTOR  AND  TRUSTEE  Business  undertaken. 
0/ Us  customers  FRANCI.S  SHIPTON,  Loulcn  Manancr. 


February  2,  1918. 


Ube  Jnvestors'  IReview. 


tig 


THE  UNION  OF  LONDON  &  SMITHS  BANK,  LTD. 


ESTABLISHED    1839. 


athorUed  CJapltal,  £23,000,000.    Subscribed  Capital,  £2a,93<,100.      Paid-up  Capital,  £3,55<,7S3  10s.    Reserve  Fond,  £iaSOU>00 

NUMBER  OP  PROPRIETORS— UPWARDS  OP  10,500. 


Sip    FELIX    SCHUSTER,    Bart.,  aovemor. 


DIRECTORS. 

LINDSAY 


Major  E.  W.  BAKNARD. 
ALFRED  F.  BUXTON,  Esq. 
CHARLES  C.  CAVE,  Esq. 
JOHN  ALAN  CLUTTON-BROCK,  E»q. 
JOHN  DENNI3T0UN,  Esq. 
HORACE  8E0RGE  DEVAS,  Esq. 
SiiKi.-Oenl.  H.  W.  DRUMMOND,  C.M.Q. 


Capt.  A.  B.  LESLIE-MELVILLE. 
JOHN  MEWS.  Esq. 
ROBERT  FENTON  MILES,  Esq. 
KENNETH  L.  C.  PRESCOTT,  Esq. 
Lt.-Col.  BERTRAM  ABEL  SMITH,  M.C. 
EUSTACE  ABEL  SMITH,  Esq. 
Major  GERALD  DUDLEY  SMITH. 


ERIC    SMITH,    Esq.,   DeputfOoternor, 

Col.  HERBERT  FRANCIS  SMITH. 

Right    Hon.    LORD    SOUTHBOHDUGH,     PjO 

G.C.B.,  G.C.M.O.,  Q.C.V.O. 
Rt.  Hon.  LORD  STUART  OF  WORTLET,  P.C 
Lt.-Col.  A.  M.  H.  WALROND. 
Rt.  Hon.  SIR  ALGERNON  WEST,  0.0.3. 
CHABLBS  H.  B.  WOLLASTON,  Btq. 


PRINCIPAL    OFFICE— 2,  Princes  Street,  E.C.2. 

GENERAL    MANAGERS. 

H.  a.  HART  (Town  and  Foreign).  L.  E.  THOMAS  (Conntrj). 


i".  W.  ELLIS,  Manager  (Town). 
H.  a.  HOLDERNESS,  Deputy  Assistant  Manager. 


H.  B.  HOABE,  Secretary. 


Lt.  L.  J,  CORNISH,  Asilitant  Secretary. 


Trustee  Department  :-2,  Princes  Street.  E.C.2. 

W.    H.    SIDEBOTHAM,    Manager. 


/tOMBARD  STStET  OFFICE  (Smitb,  Psyna  and  Smiths)   1,  Lombard  Street,  E.C.3.         CORNHILL  OFFICE  (Presaott's  Bank,  Limttad),  SO,  Corohill,  E.0.3. 


STATEMENT    OP    ACCOUNTS    for  the  Year  ending  31st  December,  1917. 


GENERAL    BALANCE. 


I 


Dr.  I.IAOILITIES. 

Oapital  subscribed,  £22,934,100  in  229,341  Shares  o(  £100  each; 

inid  ur  £15  lOs  per  share       ..  £3,554,785  10    0 

Reserve  Fund — 
Invested  in  War  Loan  5  per  Cent.  1929-1947,  as  per  contra       1,150,000    0    0 

Current  Accounts £43,651,175  15    5 

Deposit  Accounts 19,167,212  12    1 

62,818,388    8    6 

Acceptances  and  Guarantees 1,756,123  18    1 

Liabilities  by  indorsement  on  Foreign  Bills  sold 46,727  IS    9 

Other    Accounts,  including   interest     due    on    Deposits,   un- 
claimed Dividends,  &o 1,624,426    1 


Rebate  on  Bills  not  due 
Profit  and  Loss — 

Balance  brought  forward       

Net    profit     for    the     year    ending    31st 
December,  1917  


Lets  Interim  Dividend  for  half-year  ending 
30th  June,  1917 


Ltu  Amount  provided  in  Profit  and  Loss 
Account,   as  below 


47,795  18  11 


£82,543  5  8 
593,369  10  10 
£675,912  16  6 
133,304  9  2 
542,608  7  4 
200,000    0    0 


342,603    7    4 


£71.340,f56    0    4 


0«. 


Cash  in  Hand  £4,445.515  18 

„     in  Bank  of  England 9,u96,930  18 

Money  at  Call  and  at  Short  Notice 
Investments— 
^Securities  of  and  guaranteed  by  the  British 

Government 13,343,767    0    0 

India  Stock  and  Indian  Railways  Guaran- 
teed B  jnds 74,068    0    0 

Corporation   Stocks,  Railway    and  Water- 
works     Debenture     and      Preference 
Stocks,  Colonial  Stock-^,   Foreign  Gov- 
ernment and  Railway  Debenture  Bonds      1,341,465    0    0 
Other  Investments 147,449    0    0 


-£15,542.446  16 
14,312,2i9    9 


13,9:6,749 
♦Reserve  Fund — 
£1,223,571  6s.   War    Loan      5   per     Cent. 
1929-1947 1,150.000 


0    0 


*  The  War  Loans  valued  at  coat. 
Bills  Discounted — 
(a)    Tbree  months  and  under 
(&)    Exceeding  Three  months  . . 


5,50 ',356  19    6 
579,301  11  10 


Loans  and  Advances  (including  Stock  Exchange  Loans  under 

Treasury  Minute  of  31st  October,  1914)  

Liabilities  of  Customers  on  Acceptances  and  Guarantees,  as 

per  contra        

Liabilities  of  Customers  for  indorsements,  as  per  oontra 

Bank  Premises,  chiefly  fr,;ehold  (at  cost  or  under) 

Other  Accounts,  including  interest  due  on  Investments,  &o. 


15,055,749    0    0  ■ 


6,1)82,658  11  4 

18,562,871    2  7 

1,756,12;  18  1 

46,7i7  15  9 

1,52  ,0.i6    8  5 

463,002  17  9 


f7','40.S56    0    4 


PROFIT    AND    LOSS    ACCOUNT. 


Interest  allowed  to  Customers  

Salaries,  Contributions  to  Pension   Fund,  Bank  Premises 

Account,  and  other  Expenses  at  Head  Office  and  Branches 

Rebate  on  Bills  not  due  

Interim  Dividend  tor  half-year  ending  30lh  June,  1917,  at  the 

rate  of  10  per  cent,  per  annum,  la$  Income  Tax 

Provision   for  contingencies 

J'inal  Dividend  for  the  year  on  229,341  Shares  at  the  rate  of  10 

per  cent,  per  annum,  lew  Income  Tax. .        . .  £133,304    9    2 
Balance,     being    undivided     profit    carried 

forward  to  the  next  year  209,303  18    2 


FELIX  SCHUSTER,  Governor,      \ 

L.  E.  SMITH,  Deputy-Governor,    \  Directors. 


C.  H.  R.  WOLLASTON, 


£1,340,165  5  10 

625,091  18  5 
47,795  18  11 

133,304  9 
200,000  0 

2 
0 

342,608  7 

4 
8 

£2,688,965  19 

£82,543  5    S 


Profit  unappropriated  on  31st  December,  1916 

Gross  Profit  for  the  year  ending  3l8t  December,  1917,  after 
making  provision  for  all  bad  and  doubtful  debts  and 
InoomeTaz       2,606,422  14    0 


£2,688,%5  19    8 


H.  H.  HART,  General  Manager  (Town  and  Forelcn). 
L.  E.  THOMAS,  General  Manager  ((Country). 
S.  H.  BRIGGS,  Chief  Accountant. 


I- 
REPORT  OP  THE   AUDITORS  TO  THE  SHAREHOLDERS  OP  THE  UNION  OP  LONDON  AND  SMITHS  BANE,  LIMITED. 
We  have  audited  the  above  Balance  Sheet  with  the  Books  at  the  Head  OIBce  and  with  the  returns  from  ihe  Branches.      We  have  satisfied  ourselves  as  to 
the  correctness  of  the  Cash  and  have  verified  the  Investments   held   by   the  Bank,  the  Sec  rltiea  held  against  money  at  call  and  Short  Notice  and  the  Billi 
Discounted.     We  have  obtained  all  the  information  and  explanations  we  have  required.     In  our  opinion  such  Balance  Sheet  is  properly  drawn  up  so  as  to  exhibit 
a  true  and  correct  view  of  the  state  of  the  Company's  affairs  according  to  the  best  of  our  inlormation  and  the  explanations  given  to  ns  and  as  shown  by  the  tK>oka 
of  the  Company. 
WM.  B.  PEAT,  1 

,      >       ,,,,.  ,  ,„,.  C.  W.  M.  KEMP.  I     Audltotr- 

Umdon,  16th  Jaaiutry,  1918.  AHTHUE  P.  WHINNEI,  J 


120 


Zhe  Jnvestors'  IReview. 


February  2,  1918. 


DON'T    CASH    YOUR 
VICTORY  LOAN  DIVIDEND. 

£2  10s.  Dividend  will  double  your 
holding  of  War  Stock  and  produce 
£100  new  money  for  the  War. 

Write  for  particulars  to  Prudential 
Assurance  Co..  Ltd,  142,  Holborn 
Bars,  E.C.I,  or  to  any  of  its  Agents. 


LIFE  &  PROPERTY 
ASSURANCE  CO.,  LTD. 


NATIONAL  BENEFIT 

ASSETS    EXCEED        -  -        £1,000,000. 

Attractive   LIFE,    FIRE,  ACCIDENT  &,  MARINE  Pollciea. 

HEAD    OFMCES; 

NATIONAL    HOUSE.    Newgate    Street.   LONDON,    EC.  !. 

Managing  Director:  J.  Francis,  J. P.,  F.S.S. 


XTbe  investors'  IRevievv. 


Money    and   Credit    Notes. 


Bank  Rate  5  per  Cent.    (Reduced  from  5J  percent,  on 
Thursday,  April  5,  1917.) 


Norfolk  House,  Friday  Evening. 

Money  has  been  wanted  all  week ;  that  is  to  say,  the 
taxes  are  making  the  market  bare  of  floating  balances, 
and  although  no  changes  are  visible  in  discount  rates, 
the  price  of  floating  credits  has  been  generally  firm  at 
top  figures.  That  is  the  case  at  least  for  day-to-day 
money,  the  pressure  being  insufficient  to  make  any 
appreciable  diff'erence  in  the  quotation  for  seven-day 
loans.  A  fair  amount  of  general  business  has  been 
done  in  bank  paper,  particularly  American,  but  it  all 
amounts  to  little. 

The  Bank  return  shows  distinct  traces  of  revenue 
collection,  although  the  most  prominent  change  is  a 
decline  of  ;^3, 578,000  in  the  public  deposits.  That 
merely  shows  that  the  Treasury  has  to  pay  away  money 
faster  than  it  comes  in.  Other  deposits  are  also  down 
;^i, 796,000,  and  other  securities  have  diminished 
;^3, 324,000.  Government  securities  are  also  ;^964,ooo 
lower.  The  Bank,  too,  has  lost  gold  to  the  amount  of 
;^3o8,ooo,  and  as  the  note  circulation  has  expanded 
;^673,ooo,  it  follows  that  the  reserve  is  lower  by 
;^98i,ooo  at  j^3i, 161,000.  It  is  lower  also  by 
;^6,295,ooo  than  it  was  this  time  last  year,  but  owing  to 
the  diminution  in  the  liabilities  its  proportion  to  these 
remains  unchanged  at  igf  per  cent. 

The  New  South  Wales  Government  is  again  in  the 
market  as  a  borrower,  but  on  this  occasion  the  issue  is 
a  large  funding  operation.  On  September  i  next 
;^i  2,648,477  of  3i  per  cent,  .stock  falls  due,  and  holders 
next  week  are  to  be  offered  the  opportunity  of  convert- 
ing their  stock  into  sf  per  cent,  inscribed  stock  of  an 
equal  amount.  Cash  applications  at  par  will  also  be 
invited.  The  stock  will  be  redeemable  in  1922  or  1932. 
Five  per  cent  will  be  payable  on  application,  and  95 
per  cent,  on  June  10;  but  a  full  six  months'  interest 
will  be  paid  on  November  i,  equivalent  to  a  bonus  of 
about  los.,  which  brings  the  real  issue  price  down  to 
gqj.  This  was  the  price  at  which  the  ;^3,ooo,ooo  New 
South  Wales  loan,  also  in  sf  per  cents,  was  issued  in 
November  last.  The  conversion  is  an  expensive  opera- 
tion, but  it  is  not  quite  clear  why  it  should  be  under- 


taken more  than  six  months  ahead  of  the  necessary 
date.  This  lengthy  anticipation  of  future  needs  is- 
rather  expensive,  when  the  interest  is  so  much  higher. 

We  cannot  accuse  the  New  South  Wales  Govern- 
ment of  any  breach  of  contract  in  not  pro- 
viding a  sinking  fund  to  pay  that  loan  off  at  the  due 
date,  for  the  original  conditions  under  which  the  money 
was  borrowed  put  no  such  obligation  upon  the  colony. 
TTie  first  portion  of  the  expiring  loan  was  offered  by  the 
Bank  of  England  in  April,  1888,  at  a  minimum  of  102, 
and  was  sold  at  an  average  price  of  ;^io3  12s.  2d.  That 
was  the  highest  price  obtained  for  any  portion  of  it. 
It  was  issued  in  successive  amounts  down  to  Septem- 
ber, 1894,  and  the  average  interest  paid  on  the  whole 
sum  was  undoubtedly  under  3J  per  cent.  In  contrast 
with  this  "cheap  Ixjrrowing  "  the  loan  to  be  issued  in 
exchange  is  to  bear  sf  per  cent,  and  the  nominal  issue 
price  is  par,  but  in  reality  it  is  barely  99J,  because  the 
full  six  months'  interest  is  payable  on  November  i. 
The  yield  is  thus  a  very  tempting  one,  and  as  the  new 
stock  will  in  turn  come  up  for  redemption  or  renewal 
in  1922,  or  at  the  option  of  the  Government  within  the 
succeeding  ten  years,  it  is  a  short-dated  investment 
which  will  commend  itself  to  many.  Present  holders, 
therefore,  jfhould  convert  so  as  not  to  inconvenience  the 
money  market. 

Rumour  has  for  some  time  been  busy  over  an  im- 
pending issue  of  5s.  Treasury  notes,  and  Mr.  Bonar 
Law,  in  answer  to  a  question,  has  confessed  that  a 
quantity  of  these  notes  has  been  printed  and  put  in 
stock,  but  added  that  they  will  not  be  put  into  circula- 
tion just  at  present.  Many  people  may  be  rather 
shocked  at  the  news,  but  it  is  explainable  enough.  We 
have  not  been  driven  to  an  issue  of  5s.  notes  by  our 
own  necessities.  Silver  is  still  cheap  enough  to  make 
it  a  most  profitable  business  for  the  British  Mmts  to 
coin  the  metal  and  put  it  into  circulation  here  by  the 
ton.  Were  we  to  do  that,  however,  and  were  the  United 
States  also  to  consume  excessive  quantities  of  the 
white  metal,  as  has  long  been  rumoured  its  Govern- 
ment intended  to  do,  then  what  would  become  of  India, 
where  the  position  is  exactly  the  reverse?  Silver  by 
weight  is  worth  more  there  than  silver  coined  into 
rupees.  Rupees,  therefore,  get  exported.  To  ease  the 
strain  upon  India  we  must  therefore  try  to  lesson  our 
consumption  of  silver  here;    hence    the    5s.     currency 

notes. 

The  efforts  of  a  large  number  of  holders  of  Russian 
bills  to  induce  the  Treasury  to  modify  its  scheme  for 
exchanging  them  for  3  per  cent.  12-year  Exchequer 
bonds  at  par  have  unfortunately  met  with  no  success. 
A  small  deputation  waited  upon  Mr.  Bonar  Law  last 
Saturdav,  but  the  Chancellor  declared  that  he  saw  little 
prospect  of  being  able  to  amend  the  offer.  The  holders 
of  the  bills  subsequently  held  a  meeting,  and  there  is 
no  doubt  that  the  incident  has  so  impressed  them  that 
no  support  will  in  future  be  given  to  third  party 
financing,  since  it  leaves  too  much  to  the  imagination. 
Direct  financing  is  certainly  to  be  preferred,  for  then 
the  public  is  able  to  judge  for  itself  the  real  value  of  a 
security,  and  the  credit  behind  it.  To  connect  an  issue 
with  someone  else's  credit  or  "  moral  responsibility  "  is 
calculated  to  mislead  people. 

We  learn  that  since  January  i  coupons  of  the 
Russian  loans  held  in  France  have  been  paid  by  the 
French  Government,  but  it  is  a  condition  of  payment 
that  the  bonds  must  be  held  in  France.  Coupons  sent 
to  France  from  abroad  for  collection  are  not  eligible  for 
payment   under   this   arrangement. 

Paraguay,  which  failed  to  provide  the  funds  required 
to  meet  the  interest  on  her  external  debt  on  January  i, 
1917,  has  just  begun  to  resume  monthly  payments  on 
account  of  the  service  of  the  debt,  and  a  first  remittance 
of  ;^2,945  is  being  made  to  London.  The  amount  of 
the  debt  outstanding  is  ;^7 14,400,  and  the  amount  re- 
quired to  pay  off  the  arrears  of  interest  is  about 
;^32,ooo.  The  amount  of  the  monthly  remittance,  if 
maintained,  would  be  sufficient  to  meet  interest  and 
sinking  fund  charges  accruing  during  a  year,  but  that 
would  still  leave  the  arrears  to  be  made  good. 


February  2,  1918. 


XTbe  Jnvestors'  IRevlcw, 


121 


Renewed  hopes  of  an  early  peace  have  caused  a 
Scandinavian  demand  for  sterling,  and  the  Scandi- 
navian exchanges  have  accordingly  moved  again  in 
favour  of  this  country.  Stockholm  has  risen  20  to 
14.20  kr. ,  Copenhagen  20  to  15.40  kr.,  and  Christiania 
2J  to  14.57^  kr.  The  Swiss  exchange  has  moved'  in  our 
favour  rather  sharply  in  connection,  it  is  believed,  with 
steps  which  are  being  taken  to  restore  the  exchange, 
and  the  quotation  is  30  points  higher  on  the  week  at 
31.35  fr.  Madrid  has  also  risen  slightly  to  19.64^ 
pesetas  to  the  pound.  A  hitch  is  reported  to  have 
occurred  in  connection  with  the  negotiations  for  a 
Spanish'  credit  for  France  of  500,000,000  frs. 
(;^"2o, 000,000)  owing  to  the  leading  Spanish  bank  con- 
cerned having  apparently  discovered  some  legal  im- 
pediment, but  it  may  be  assumed  that  the  question  of 
the  Spanish  exchange  will  be  solved,  since  a  satisfac- 
tory scheme  is  as  necessary  to  the  maintenance  of 
Spanish  trade  as  it  is  to  the  buyers  of  Spanish  goods. 
Sir  Felix  Schuster,  in  his  very  interesting  address  to 
the  shareholders  of  the  Union  of  London  and  Smiths 
Bank,   said  there  was  good  authority  for  saying  that 

I  our  exports,  visible  and  invisible,  equalled  our  imports, 
and   that  therefore    our  exchange  position  was   really 
better  than  was  supposed.      The  explanation  of  the  ad- 
verse state  of  the  exchanges  is  to  be  found  presumably 
in  the  extent  to  which  sterling  is  used  by  our  Allies. 
The     latest     news     from     Rome     is     that     already 
;^8o,ooo,ooo  have  been  subscribed  to  the  new  Italian 
Loan,  all  new  money,  and    that    another    ;^40, 000,000 
consists  of  old  War  Loans  and  Treasury  bills  turned 
over  for  conversion.     It  is  hoped  that  the  small  sub- 
scriptions will  pour  in  in  increasing  volume. 
Silver. 
Silver  has  remained  weak  since  we  wrote  last,  and 
the  price  yesterday  of  43|d.  per  oz.  is  ^d.  lower  than 
^_    that  of  a  week  ago.     There    has    been  a  little    more 
^B    steadiness,   Mocatta's  circular  says,  in  the  China  ex- 
^^   change,  but  it  is  probably  due  to  speculation  in  connec- 
tion with  the  Chinese  New  Year,  and  buying  from  that 
I    quarter  is  not  looked  for  at  present.     In  India  the  out- 
flow of  rupees  continues  large,   as  is   shown     by    the 
Indian  currency  returns.     This  time  of  year  generally 
sees  a  diminution  in  the  silver  reserve,  but  at  present 
the   stimulus   to    withdrawals     is    overwhelming,    and 
unless  the  price  of  the  metal    comes    back    below  the 
official  exchange  value  of    the   rupee    there    may    be 
trouble.     The  holdings  are  now  less  than   15  crores  of 
rupees.     Montagu's  circular  states  that  the  issue  of  one 

•  rupee  notes  in  Indian  on  December  i  last  appears  to 
.  have  met  with  immediate  response  on  the  part  of  the 
public.  The  stock  of  notes  at  the  Bank  of  Bombay  was 
said  to  be  exhausted  verv  early  in  the  day,  and  a  fresh 
suppiv  has  to  be  requisitioned.  There  was  a  similar 
rush  in  Calcutta.  The  decline  in  the  silver  reserve,  as 
shown  in  the  following  table,  no  doubt  stimulates  the 
demand  for  these  notes.     The  stock  of  bars  at  Bombay 

I  is  aDoarentlv  unaltered  at  3,400  bars.     In  Shanghai  the 
stock  on  January  26  consisted  of  about  27,700,000  ozs. 
in  svcee  and  $13,000,000,  or  the  same  as  the  previous 
week  except  that  the  dollars  are  100,000  down. 
i 


Indian  Currency  (In  Lacs  of  Rupees.) 


Jan.   7. 
10,697 
1,772 
2,672 

lOS 

Jan. 15 

10.552 

1,626 

2.673 

105 

Tan   22, 

Notes  in  circulation     

10,411 

1,486 

2,673 

T04 

Reserve  in  silver  coin  and  bullion 

Gold  coin  and  bullion  in  India     

Gold  nut  of  India    

Applications  for  the  Rs.  60,00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Rs.  2,i9,i;5,ooo.  Of  these 
Rs.  55,49,000  were  allotted  in  deferred  transfers,  and 
Rs.  4,51,000  in  immediate  transfers.  Tenders  for  bills  and  de- 
ferred transfers  at  is.  4  29-32d.  and  for  immediate  transfers 
at    19.  5d.   received    about   27   per   cent. 


I 
I 


An  Indo-British  Association  has  been  started,  under  the 
chairmanship  of  Lord  Sydenham  of  Combe.  Its  temporary 
offices  are  at  2  and  3,  Norfolk  Street,  Strand.  It  should  have 
a  great  work  Before  it.  One  of  its  first  publications  is  an 
address  by  Sir  John  P.  Hewitt  on  "The  Relation  of  Certain 
Political  Movements  in  India  Towards  Trade  in  India  and 
Great  Britain."  It  is  a  most  inctmctive  and  valuable  address 
Read  it. 


BANK    OP    ENGLAND, 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  lor  the- 
Week  ending  on  Wednesday,  January  30,    918. 
ISSUE    DEPARTMENT. 


Notes  Issued 


i 
75.934.585 


£75,934.585 


Government  Debt., 
other  Securities     ., 
Gold  Coin  and  Bullloo 
Silver  BiillioD 


BANKING    DEPARTMENT. 


Proprietors'  Cipltal 

Rest 

Pablio  DeposllB(includlng 
Bxcbequer,  Savings 
Banks,  Commissioners 
of  National  Debt,  and 
Dividend  Aooounts)  .. 

Otber  Deposits 

Seven  Day  and  otber  Bills 


£ 

14,5"i3.ooo 
3,481.837 


38,236,917 

122,644.208 

10234 


Government  Securities 
otber  Securities    .. 

Notes 

Gold  and  Silver  Colo 


£ 
11,015,100- 

7,434.900 
57,484,585 

£75,934  5*5 


£ 

55.875,951 
91,889,588 
30,038,290 
1,122,367 


fl78,926,l96. 
J.  G.  NAIRNE,  Chief  Caahierj 


^178,926,196 
Dated  January  31,  igi8, 

BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year 
Jan.  31. 


£ 

3,401.937 

44.764,140 

168,777,346 

27,957 

160,373,392 
35.727,351 
35.513,637 


£ 

39,601,075 
56,664,712 

l6'6  P.O. 

5i  ., 


Liabilities. 
Kest 

Pub.  Deposits  ., 
Other    do. 
7  Day  Bills 
Assets. 
Gov.  Securities. 
Other        do. 
T9tal  Reaecve .. 


Note  Circulation 
Coin  and  Bullion 
Proportion 
Bank  Rate 


Jan.  23, 
1918. 


C 

3,377,302 

41,814,592 

124,440,103 

10,829 

56,839.851 
95,214,194 
32,141.781 


£ 

45,222,905 
58,914,086 

193  P.O. 


Jan.  30, 
igiS. 


£ 

3.481.837 

38,236,917 

122,644  208 

10,234 

55.S75.951 
91,889,588 
31,160,657 


£ 

45,896,295 

58,606,952 

194  p.c. 

5       .. 


Increase. 


£ 

104,535 


Decrease. 

963,900 

3,324,606 

981,124 

5.374,165 


Increase. 

£ 
673,390 

•I'p.C. 


DeotMse. 


3,577, 6n 

1.793.895 

595 

Increase. 


5.374.165 


Decrease. 

£_ 

307,734 


LONDON    BANHEKS'   CLEARING. 


Date. 

Increase. 

Decrease. 

January  2 

9 

„       16 

„       23 

„       30 

1918. 
400,652,000 
455,056,000 
400,636,000 
403,702,000 
413  09^,000 

1917. 
389,111.1-00 
376,702,000 
350,063  000 
360,172  000 
389,1  7,000 

£ 
11,541,000 
78  354,000 
50,573,000 

43,660,CO3 

23,917,000 

£ 

Total 

2,073,224,000 

1,865,125,000 

208,045,000 

— 

PUBLIC   INCOME  AND    EXPENDITURE, 

(For  7  days  ended  Jan.  26.) 


Expenditure. 


Customs  

Excise   . .        ,.   • 

Estate,  &c.,  Duties  .. 

Stamps 

Land  Tax  and  House  Duty 

Property  Hnd  Income  Tax 

Excess  ProtitsTas..         ..    5, 

Land  Values   ..        . .        •• 

Post  Office 

Crown  Lands 

Sundry  loans 

Mi-^cellaneous. . 

Bullion  adviinces  repaid    ,. 

ForTreasuryBill'^  for  Supply  73 

5%  Exchequer  Bonds,  1922. . 

t%  Exchequer  Bonds,  1920. . 

Nation.)  war  Bonds         "^S?! 

War  Expenditure  Certificates 

War  Savings   Ctrtiticates ..    2, 

4%  War  Loan,  1929-1942  ) 

5%  War  Loan,  1929-1947  f  *  * 

Otiier  Dtbts  created  under 
War  Loan  Act,  1915,  and 
Fin^nce  Act,  1916.. 

Telegraph  Money  Act,  1013 

Under  Post  Office  Riy.  Act, 
1913 

Under  Military  Works  Act, 
1897- 1903       

Under  Pubii/:  Buildings    ., 

Under  Housing  Act.. 

Repayment  of  Advance  for 
Interest  on  Exchequer 
Bonds  

China  Indemnity 

East  Africa  Loan  repay- 
ments  

Suez  Canal  Drawn  Snares. . 

Ways  and  Means  Advances 

Decrease  in  Exchequer 
balances       


€ 

,434,000 
395.000 
714,000 
175,000 
190,000 

,150,000 
,,244,Ot.O 

300,rco 
ic  0,000 

742.976 

70,000 

,29fcl,ooo 


,497,000 

,5oo,oco 

4,:24.86g 


National  Debt  Service       ..        — 
Inter  si,   &c.,  on  War  Debt    1,056,007 
Development  &  Road  Impvt       — 
Pdymemsto  Local  Taxation      400,000 
Other    Consolidated    Fund 

Charges        — 

Supply  Services       ..         ..  36,029,000 
Bullion  Advances     ..        ..       100,000 
For   Advai  ce   for    Interest 
on  Exchequer  Bonds  un- 
der   Capital   Expenditure 
(Mcn^^y)  Act,  1904  ..         ..        — 
For  Treasury  Bills  ..-      ..  73,530,000 
War  Loan  and  Exchequer 

Bonds 
Other  Debt  under  War  Loan 

Acts,  19U-16 

For  i-xchequer  Bonds  under 

Section  61  of  Finance  Act, 

1916,  and  Seciiun  54.  1917 

Under   Telegraph    (Money) 

Act,  1913 

Under    Post    Office    (Lon- 
don) Railway  Act,  1913.. 
Under  Militar    Works  Acts 
UnJer  Housing  Act,  1914.. 
Public    Buildings  Expendi- 
ture Act,  1903 
Old  Sinking  Fund,  1907-8.. 
Sinking  Fund,  1914..        ., 
China  In  leinnity 
East  African  Loan  . . 
Cunard  Agreemt;nt  Act     .. 
Depreciation  Fund  .. 
Suez  Canal  Drawn  Shares.. 
T.  mpoi  aryAdvancf'S  Repaid  22,000,000 
Increase       in       Exchequer 
balances       — 


1,158,850 
133,264 


15.000 


2,649,020 


124,296 


£139,061,141 


£139,061.141 


♦Excluding  sales  through  banks  which  have  not  yet  been  brought  to  account 


Ube  Jnvestors'  TReview. 


February  2,  1918. 


Return  of  Currency 

CURRENCY    NOTES. 

Notes  for  the  week  ended  January  30,  1918. 

Issued. 

Cancelled. 

Outstanding. 

fi  notes 
los.  notes 
Note  certificates 
Previous  total 

•• 

4,871,^43 

1,202.090 

200,000 

811. 714. 116 

£ 

2,994.979 

1,165  890 

320,000 

601,571,136 

£ 
154,300,511 
36.654.785 

21,OtO.OOO 
210,142  985 

817,987,251 

606,001 ,95S 

211,985,^96 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.). 


Dec.  28,  1917. 


Gold  coin  and  certificates 
Gold  Settlement  Fund 
Gold  with  foreign  agencies 

Total  gold  held  by  banks 
-Gold  with  F  deral  Res.  Agent 
'Gold  Redemption  Funil 

Toiai  gold  reserves    . 
•Legal  tender  notes,  silver,  &c. 

Total  reserves  , . 
Bills  discounied— Members', 
iBills  bought  in  open  market 

Total  bills  on  hand     . . 
'U.S.  Gov.  long-term  sec. 
4J.S.  Gov.  short  term  sec.      . 
Municipal  warrants      .. 
Loans  on  gold  coin  and  bullion 
Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 
Total  dtdctns.  fm  gross  dep. 
5%Red.FundagFed.Kes.bknts 
Ail  othtr  resources 

Total  resources 
Capital  paid  in  . . 
Government  deposits  .. 
Due  to  membrs  Kes.  account 
iDueto  non-mbrs— clearins  ac, 
Members'  b.ink  deposits— nett 
Gollection  items 

Total  gross  deposits 
^F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn-  nett  li;tb. 
Ali  other  liab,  in  for  Gov  cidts 

Total  liabilities 

Gold  res  ag  nett  deposit  liab 

Gold  &  lawful  montfv  reserve 

against  nett  deposit  iiabiHtiesI 

Gold  res  ag  F.R.  nts  in  act  circl 


99,981,400 
63,504,0  »o 
10,50"  000 


i7.,<.87,400 

156,370,200 

3.><  9.0  o 


Dec.  2X,  1917. 


104,870,000 
60,9  o  8(Xi 
I'  ,<oo.ooo 


176,200,800 

I4q,    61,400 
■\,^B,f<  4'^ 


334  226,600 
9  927  010 


344.151  6  X) 
I  6,141,200 
55-t^73.^^o 


,  108,60  > 
6?5  40^ 


33-.734O0O 
138  701. 8rx) 
55  5S8.600 


191,    i4,4uO 

9,670,000 

11,776  600 

201,000 


2I2,862.0.XJ 

2,387,200 

fO  221,4^0 


62,60 ->,b.  0 
107,400 


620     9    ,2'  Q 


14,088  400 

21,64 ',600 

290,633,200 

38  338,600 

3,59^.000 


354,207,4  o 

249,297,  fioo 

1,600,000 

1, 100, "00 


194  2<.0,400 

10  087,600 

11,626  000 
220,40* 


Dec.  29,  1916. 


C 
56,317.600 

34,094,200 


90  411,800 
56,504,600 

33  .8oo_ 

147,247.200 
3.507.600 


i50.754.t'00 
6,-3^,200 

?s  4  t".40  > 


3(,'>3:l,t)vX) 
8,849,400 
2,233400 
1,795,000 


216  224,4'>0 

8,275,0  O 

64,714,800 


72,989,800 
107.400 

5-5  fi'O 


628.    QI  ?ni 


'3  970.4  <" 
44  352,200 

277,866,800 

41,163  8ao 
2  Hi  600 


366  254.40c 

245,S28,4O0 

1,6  o.coo 
1,2^8  oao 


620,2  .4,. 00 


59-7% 

631% 

64.'% 


62S,'-9t.2cy 


60.1% 


634% 

62.2% 


44,410,400 
9,391.600 


9,391.600 

80,000 

1,24-, ©20 


205.880  ^oo 


i 1 , 1 ^9  300 
5,767,400 


I33i757,200 


139  524,600 
55.070,6  o 


205,8'<9,'-QO 


699% 

7-!-2% 

103-2% 


NEW    YORK   ASSOCIATE!)    BANKS   (dollar  at  4s.). 


•Loans 

Reserve  held  in  own  Vaults . 

Reserve  held  in  Fed.  Res.  Bk 

Ca«h  in  r-wn  Vaults     .. 
Reserve  held  in  Other  Depos. 
-Nett  Demand  Deposits 

Nett  Time  Deposits     . . 
Circulation 
fixoesa  Lawful  Reserve 


Jan. 26,1918.  Jan. 19,1918 


8i5,iP4,ofc 

3,704  000 

107.6/6,  00 

2 1, 690,000 

I  7:!4.too 

728,3'>6,oo( 

40, 1 5", 000 

6,81 6, oon 

15,986.000 


c 

8i4,3io,oco 

4,0'2,OOC 

iofi,9o6  000 
22,706,000 

I;  790,00c 
746,        90,000 

39  496,000 
6  810,000 
f    13,254.0^0 


Jan. 12,  918 


818,168,000 

4,074.000 

106,406  00c 

23.334.000 

1.790,00' 

737,986,000 

39,5M2,otJO 

6,816.000 

3,852,000 


Jan.27,1917. 


^94, 478, 000 
iio,;64,ooo 
39,926,000 

11,366,000 
717,260,010 
33,0  4,000 
5.736,000 
38,142,000 


Lawful   Kesvrve  consists  of    i8%  of    tue  Demand   Deposits  and  3%  01     the 
Time  Deposits 

NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES  (doUar  at  4s). 


Loans  ., 

"Specie 
Depofiits 
'Lesal  Tenders 


Jan.  26,  igi8.  Jan.  19,  1918,    Jan.  12,  1918. 


l64,"22,000 

3.516,000 

i67,fo6,ooo 

^15. 3  30,01 


164,250,000 

3,566  oco 

169,492,000 

14.9  6.roo 


160,592  000 

3,432,600 

167,292,000 

IS  5  =  8.0  n 


Jan.  27,  1917. 


148.726.000 

12,614.  00 

:6o,7j2,ooo 

2  044.0.  o 


imPbRlAt  BANK  0^   ubKM4l>i1    iZU  mnrk»  to  iii<    k 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  ciscouDted 
.Advances        ..        .. 
Note  circulation 
Depo-sits 


Jan.  23,  1918.  Jan.    13,  1918    Jan.  7,  19.8.    Jan.  33, 1917 


£ 
126,028,850 

59.7"'5.'>oo 
620,901.850 
286,350 
545,94».6oo 
^12,5^0,550 


C 
I" 5  989.350 
62,968,7  o 
640.679,2  o 
33\050 
552,197,300 
329.Q54.iO' 


I 
125,878,150 
66,951,650 
658.320,900 
134.650 
567,163  250 
311.520,750 


i27,oi«,45o 

16,159,200 

408,631,850 

509    50 

S^a.ssQ  150 

lB2,iOi  000 


Jan.  19, 1918 

Jan. 11, 1918 

Jan.  5, 1918 

Jan.  20, 1917. 

Gold        

Silver 

tPo  HiKi,  bill. 

Discouuie  and  bbort  Bills  .. 
Tic.uty  Account,  to. 
Note<  In  Ciroulatlou  .. 
Current    Accounts,   Depositv 
Dividends,  Interssis,  Ac.     .. 
Goveruiueni  Seourliies 

78,704,796 

28,356739 

3561,879 

28,556.309 

'7,073.345 

112,672,744 

37.879  '6' 

2,128,861 

1,652,  66 

78,6^,479 

38,296,124 

3,6,3.878 

28,971,09) 

26,825,713 

112,746,814 

38,178,587 

2,5  7.038 

1.799,075 

c 

78,f8o.i07 
28.294329 
3.632,3-9 
29520,743 
26  001, .^09 
112  543,176 
38  600,  i77 
2,5^2,760 

2,oi5,557 

I 

50,980,370 

29.754  407 

3477,751 

s6,  97,865 

27,<75,713 

94.93.'i.'*43 

30,1.65,917 

2,  49,4^3 

1,590,296 

NETHERLANDS  BANK  {It  Fiorina  to  the  £). 


Gold  and  Silver 
Bi      and  Advances 
.Note  circulation 
•.Deposits.. 


Jan.  19,  igi8. 


£ 

59.593. i6« 

15,4>  3,500 

7  ,921, «i6 

4.746,583 


Jan. 12, 1918 


(. 

58  409  416 

15,2:0. .00 

73.966.33  J 

3.533,333 


Jan    J, 1918 


58,676,750 

16  149  333 

74.b35,ooo 

3.t03,4i6 


Jan,  30, 1917. 


49,698  583 
"3.»74,'5o 
61,582,250 
6,288,»i6 


LONDON  COURSE  OP  EXCHANGE. 

Jan.  29,  1918. 

Jan.  31,  1918. 

Place. 

Sellers. 

Bujrert 

Sellers. 

Bayers. 

Amsterdam  . .     . . 

,,              ..    .. 

Pans     

Switzerland. .     . . 

Petrograd     . .     . . 

Genoa,  Ac 

Spain     

Lisbon  and  Oporto 
Corenhaeen..     .. 
Ctiristiania  ..     .. 
Stockiiolm   ..     .. 

Cable  transfers 

Three  months' bills . .     .. 

Cable  transfers 

Three  months'  bills. .     . . 

Cable  tran«ffrs 

Tnre.  months' bills  . .     .. 

<  able  trariHfers 

Cable  transfers 

Cable  tran«f,rs 

Three  mo'ths' bills..     .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cah'e  transters 

io.;8 
10.92 
37.13 
27  53 
31  30 
21  65 

nom. 

19.60 
57J 

1538 
14  55 
14.15 

1083 
10.99 

27.18 

27.58 
31.4.1 
21.75 
nom. 
40.60 
19.70 
5»i 
301 
1  .48 
14-55 
14.25 

lo.eo 
10.95 
27  '3 
27.53 
31.4s 
31.80 
nom. 
4  .i'5 
19.62 
5?! 

1538 
14. It 
14.18 

.0.8J 
11.00 
37.15 
27.58 
21.5s 
21.50 
nom. 
4095 
19.71 
58i 

.^48 

'4U 

Clearing  House  return  during   Dec<.mbt:r  £407,63/, 765,   against  £424,889,70] 
4a  November. 

BANK   OF   SPAIN  (25  pesetas  to  tbe  t). 


FOREIGN    RATES   OF   EXCHANGE   ON    lONDON. 


Method  of 

Last 

This 

Quoting. 

It 

We.k. 

Week. 

Paris,  cheques 

Fr.incs  10  £1 

2,.2/» 

i7--44 
10.74J 

27.l5i 

Amsiieniam,  cheques 

Florins  to  £1 

12.107 

'"ai 

Italy,  sight 

Lire  to  £1  . . 

25.22i 

4  .224 

40.87i 

Madrid,  sight 

Pesetas  to  £1 

25.22J 

1.7.70 

^U\ 

Lisbon,  sifdht 

.-'cnce  to  mitreis  .. 

535d. 

2,j<l. 

Switzerland,  sight    ,, 

Francs  to  £1 

25  22i 

21.10 

3I.43i 

Christiania,  siaht      .. 

Kroner  to  £1 

iS.  59 

l.-'7. 

14.64 

Stockholm,  si^ht 

Kroner  to  f  I 

18.159 

I4-0.i 

14.33 

I5.«3i 

Copenhagen,  sisht    .. 

Kronfrtoji 

18.159 

15.24 

Prtrograd,  sight 

Koul.les  to  jTio     .. 

94-57 

365 

365 

Aleiandria.  sght      ., 

Piasresiofi       .. 

97J 

"iKx 

vii 

Bombay,  T.T. 

Sterling  to  rupee. . 

1/4 

1/4* 

'*iJ 

Calcutu,  T.T 

SterlinK  to  rupee. 
Sterling  to  d  liar. 

1/4 

■MS 

iMH 

Hong  Kotig,  T.T 



3/1; 

3/11^ 

Shangnai,  T.T 

Sterl  ng  to  tael     . 



tf-h 

4/3i 

Singapore,  T.T 

Sterling  to  dollar. 



l*f 

3/4:6 

Yok  )hai.ia.  T.T 

Sterling  to  yen  . 
Dollars  to  £t 

2-.5SH. 

1.% 

il'i 

New  York,  cable     .. 

4.S6§ 

4. /CI 

Buenos  A. res,  T.T 

Pence  to  dullar    . 

47-58<i. 

^^ 

isld- 

Valparaiso,  90  days.. 

Fence  10  peso 

— 

Tontevideo,  T.T 

Hence  to  dollar     . 

5ld. 

59d. 

583d. 

Rio  de  Janeiro,  90  days     . . 

Pence  to  milreis  . 

l6d. 

ujd. 

uUd- 

..MEN   MAKhET  OISCOUNl.l-p»^'^««'|;Th«w~k 


Thirty  and  sixty  day  remttted 

Tutti^  uiuutUt  ,, 

Pour  tnonibs  n 

Sii  months  . 

Three  months  fine  lalaoa  bills 
Pniir  months 
Six  mouths 


3l-4 
4-1I. 

:-S 

4«  5 
4i-5 
4*-5 


3l— 4 

4-A 

4-A 

4-A 

4i-5 

4i-5 


BANK   AND  DEPOSIT   RATES.    La.,  week  ijis  week 

Per  cent.     Per  cent. 


Bink  of-  England  minimum  discount  rate 

,,  ,.         short  loan  rates 

Bankers' rate  on  deposits               ..  •> 
B'U  brokers' deposit  rate  (call) 

,,            7  and  14  days' iiotloe  .. 

Curreut  rates  for  7  day  loans          ..  .. 

..             for  call  loans               ..  .. 


3l 

l\ 
3J- 
3i- 


I 


The   Week's    Stock    Markets. 


Business  has  been  quiet  to  the  point  of  utter  stagna- 
tion on  the  Stock  Exchange  this  week,  but  in  the  cir- 
cumstances that  is  not  altogether  surprising.  In  the 
first  place  air  raids  have  an  unsettling  influence, 
because  so  many  people  want  to  compare  notes  or 
personal  experiences  that  they  are  inclined  to  put  off 
doing  anything  which  is  not  immediately  pressing. 
Apart  from  that,  the  news,  although  generally  satisfac- 
tory, has  not  been  of  a  character  to  encourage  enthu- 
siasm, and  the  feeling  most  usually  met  with  is  one 
of  lassitude  or  indifference.  There  have  been  a  few 
bright  spots,  notably  in  the  Rhodesian  market,  where 
the  Falcon  dividend  created  a  little  pleasurable  excite- 
ment, but  the  effect  of  such  incidents  is  much  more 
circumscribed  than  would  have  been  the  case  in  the  old 
days.  Gilt-edged  stocks  were  dullish,  and  sagged  a 
little  when  it  became  known  that  a  large  New  South 
Wales  loan  was  in  preparation,  and  the  amount  of 
dealings  in  the  foreign  bond  market  has  been  trivial 
for  a  long  time  past.  Home  Rails  have  not  benefited 
from  the  dividend  announcements,  which  are  barely 
up  to  expectations,  and  Argentines  suffer  from  the  un- 
certainty regarding  the  labour  outlook.  Industrials 
have  been  about  the  best  section  in  the  House,  and 
Brunner  Monds  were  very  prominent  on  the  capital 
reorganisation  scheme,  which  provides  three  new- 
shares  for  every  two  at  present  held.  Nearly  the 
whole  list  was  good,  and  among  Bank  shares  Char- 
tered of  India  and  Bank  of  Australasia  have  been  par- 
ticularly prominent,  for  no  specifically  known  reason. 
In  spite,  however,  of  these  good  spots,  it  has  been  a 
dreary  week. 


February  2,  1918. 


Zbc  Jnvestore'  IReview. 


I2J- 


I  Last  I  This  II 

WeeklWeekP 


Lase    This 
Week  Week 


Consols.... 
War  Loan 


India  3%  . 
.,     3*% 

Australian  5j%,  1920-22 

Canada  4%.  1940-60  . . . . 
,.      4}%. '920-5  .... 

N.S.W.  4%    1933 

Argentine  4%,  igoo  .... 

Ber(!ian3% 

Brazil,  iot3 

..       5%,  1914    

Chinese  i«96  

,,       igi2  

Egypt  Unified  4% 

Caledonian  defd 

Gt.  Central  pra 

,,        „        dfd 

Gt.  Eastern 

Gt.  N.rthern  dfd 

Gt.  Western    

Lancfi.  and  Yorks 

London  BriKhton  defd. 
London  Chatham  ord. . . , 


CanaHian  Pacific    

■  E.  Indian  Guar.  4J  %  debs 
Grand  Trunk  orcf.    

Do.  1st  pf 

Do.  3rdpf 

Antotagasta  dfd.     

Brazil  Cnnitnon 

B.  A.  &  PaciHc  

B.  A.  Gt.  Sonthem 

B.  A   Western    

Anglo-South  American   .. 

Bank  of  Anstralcisla 

Bank  of  N.S.  Wales 

Barclay  &  Co.  '  A  " 

Do.       "B" 

Capital  &  Counties   

Charter  ed  of  I  ndia    

Hongkong  &  Shanghai    .. 

Lloyds  

London  &  Brazi  1  ian ; 


Armstrong,  Whit  worth.. 
Birminiihain   Small  Arm? 

Cammell-I.aird 

Cargo  Fleet 

Dorman,  Long  


5:* 
86} 
99I 
934 
lOf  A 
554 
64} 
97* 
81^ 

81J 
67J 
63} 
70 
80J 
94 
83 
85 
8! 


87 
67a 
60 


I 


Associated  Cement 

Borax  dfd 

Bovrii    

Brazil  Traction  

British  Ainer.  Tobacco  pf 

British  AliHiiinium  

Briti-h  Oil  &  Lake    

Brunner,  Mond 

Castiibr-Keilner 

Coats 

Courtaulds 

Cunard 

Dennis  Bros 

Eastern  Tel' graph   

Kastiiians 

English  Sewing  Cotton  .. 

Anglo-Kgvptian  "  B"  .... 

Baku  (los.) 

Burmah 

Lobitos 

Maikop  Pipeline   

Mexican  Eagle  pf 

Anagar2/- 

AnKlu-Java  Rub.  2/-     

Anglo-M.»la>  2/ 

Ayer  Kuniny  £1 

Batang  Malaka  2/- 

Bekoh  2/-         

Brit.  N.  Borneo  Trust  £1 

BukitCloh2/- 

Bukit  Kajangjfi 

^Bukit  Mertajain  2/-    

Bukii  Senir>awang  2/-  .... 

Carey  Cniied  £1   

Ceylon  Para  2/- 

Chersone.-'e 

Chevi  t  2/-    

Dalkeiih  3/- 

Eastern  Invest.  Trust  jfi.. 

Grand  Central  f  i 

Gula  Koluiiiuone  A... 

Higbia-.ds^  ...*•..:: 

Java  Investm  nt  £1  ... 

Java  Faru  t^i   

Johor*-  Kiii)her  Lands  £ 

Kamunin    2/-    

Kinta  Kenas2/-  .*.!!!!! 

Kuala  K   bu  2/- " 

Labu^/-. ..... .!!]"'] 

Lang--n  Java  £1. ...... 

LinKgia/- 

London  Asiatic 2/- 

Malacca  £1  . .  ..,.i!  1] 

Malayalrfiii  £1 \/^\ 

Mt-rliinaii  2/-    \\\ 

Padang  Jawa  2/-.  ..*.!!! 

Pdtaling  i/- 

AbtMntia^ofin  (rn/-).,, 
Bechuanaland  Exp.    .. 

Brakpait  

Brok<  n  Hill  Prop.  (8/-) 

Cam  &  Mou.r 

Ceniral  Mining  i£i2)  . 

Chartered        

City  Deep      

Cons.  Gold  Fields  .... 
Cons.  Langla^igte. .  .., 
Crown  Mnie!>  {io/-i  ..., 
De  iieers  d^d.  (£2  101.) 

East  H-ind    .....    

Gttduld 

Gov.  Areas  Mot?     ..,.. 


33 

3X 

42/ 

41/6 

21/ 

21/ 

45i 

44* 

l8/b 

18/6 

33/0 

33/6 

33/3 

33/9 

5 

3A 

3A 

6: 

6« 

Alk 

4Yi 

■"', 

35/3 

15151 

I5ti 

0/ 

8/9 

56/3 

55/^ 

160 

34 

9J 
53 
2ii 

'3Jj 
5 
40 
75 
7i3 
74 
117 
36 
7S 

"4 
244 
70J 

88 
25 
24J 

41/9 
54/ 
7 
24/3 
40/x 

3j 

4Zi 

21 
4; 
18, 

33 
33 

4; 

3i 

6i 

6i 

41 

35 
151 

9/ 
56/ 

=9/ 

1/9 

7i 

2A 

3/ 
63/ 

3/3 
7/ 
'3/6 
50/ 
4/74 
4/64 

•■71 
5/14 
71/3 
4/74 
3/4i 
45/ 

10/ 

3/6 
6/4 

3/ 

^5/9 
27/9 
36/ 

(JO" 

30/ 

31/9 

33/6 

4/3 

4/6 

2/105 

9/9 

45/ 

27/ 
8/6 
54 

40/ 

544 

3.9 

43<x 

4/3 
7/6 
5A 

56/ 

129 

15/9 
3j 

'H 
20/ 

2 

I3J 

6/9 


548 
86i 
99I 

93?, 

1011^ 

55S" 

644 

98 

813 

93 

82 

674 

64 

70 

805 

94 

83 

85 

8J 
14 

63 
35X 
38 
86| 

trl 
60 

8| 

160 
84 
94 
53 
2li 

■324 

5 

40 

733 

713 

7i 

120 

36 

74x 
124X 

244 

733 

8S 

25 

244 
41  9 
53/6 

7 
27/ 
40/ 


N.S.W.  44%5yr.hd8.... 
..      44%.  '922-7 

5%.  •9»'-3 

51%,  '920-2  ... 
New  Zealand  4%,  1929  . 
Queensland  4% 

,,  ...     ,  44%.  '920-3  . 

Union   of  S.  Africa  44%, 

'920-5     

Victoria  44%,  1920-5 

Westn.  Aus.  4%    

French  War  Loan,  5%  . . 
Japan  4j%  (isi),  1905    

5%   '907 

Mexican  5%,  1S99    

Russia  4   % 

>.      44%, '909 

..      5%.  '906 

London  and  N.-W 

London  and  S.-W.  dfd.  ., 

Do     red.  pf.  1914 

Metropolitan  

,.        }>'>■  .     3%      pf.. 

Mel.  District 

Midland  dfd 

Nth.  liritishdfd 

Nth.-Kastern 

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern 


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San   Paulo  (Brazilian). .. . 

United  of  Havana 

London  City  &  Midland. . 
London  County  &  West. . . 

London  Joint  Stock 

Nat.  Prov .  of  Eng.(^ioJ  pd ) 
Do.  (£'2pd) 

Parr's    

Standard  of  S.  A 

Union  Discount 

Union  &  Smiths 


Kynochs   

Mond  Nickel  ord 

South  Durham  Steel 

Thornycroft    

Vickers 


Kine  Cotton  Spinners  . . . . 

Forestal  Land 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay     

Imperial  Tobacco  *C'  pf. 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Marconi    

Mavpole  Dairy  dfd 

National  Steam  Car 

Pears,A.&F 

P.  &  O.  rtfd 

Royal  Mail  

Underground  Inc.  Bds.  .. 


30/ 
'/9 
7i 

2A 

2/ 
63/ 

3/3 
6. 10/ 
13  3 
50/ 
4//4 
4/5 
16;  ( 
5/14 
71/3 
4/9 
3/4« 

43/ 
9'4i 
3/6 
6/3 
2I10I 
Z5'<)' 
-6/6 
36/ 
59/ 
29/3 
3i/ 
33/ 
4/2 
4/3 

2/ioi 

9 '9 
45/ 

266 

83 

5g 

39/ i 

5/6 

3/9 

41/6 

4/3 
7/3 
5i 

56,6 
14/ 

64 
16/ 
3i 
■+* 
19/6 
2 
13 
6/6 


North  Caucasian 

Roumanian  Cons 

Royal  Dutch  (100  gulden) 

Shell 

Spies  (10/.) 

Ural  Caspian 

Perak  2/-  

Port  Dickson  2/-   

Rub.  Estates  Johore  £1. 
Rub.  Estates  Krian  2/-. . . 

Rubber  Trust  £1 

Sampang  (Java)  2/- ; 

^apumalkaude  £1     

Seaport  £1 

.>eIarigor 

Sengat  2/- 

Seremb.n^i  

Shelford  fi 

Sialang  £1    

Singapore  Para  2/-    

Singapoie  Uuittd  2/-    

Soember  Ajoe  2/- 

Stagbrook  l,i 

Straits  liertam  2/- 

Sumatra  Paru2/- 

Sungei  Bahru  ^l    

Sungei  K  ipar  2/-   

Sungei  Kruit  £1 

laiping  2/-  

Tall  Ayer  ^i  

r.ndjo  .a  £1    

I  andjong  Malim  £1 

Tebrau  £  t  

Telogoredjo  £1 

Tem  peh  2/- 

United  berdang  2/- 

United  Sumatra  2/- 

Vald'Or  2- 

Valiambrosa  2/- 

Way  Halim  1/8  pd 


Gt.  Boulder  (2/-1    

Kysht  m    

.Vla-honaland  Agency  .. 
Meyer  &  Charlton    .... 

Modder  •   B" 

Do.     Deep 

vlysore 

R  nd  .vlines  (5/-)    

Rio  Tinto  (£5)   

Ru  so-A.i  lie 

Spring  Mmes 

lai  g  tiiyika 

Taiialyk    

Van  kyn  Deep   


99 

90 

97 

98 

86 

80J 

94 

92 

94 

79 

793 

99 

92 

60 

374 
38X 
4S4 
93 
2)4 
94 
234 
77 
'5i 
59 
14 
9'ii 
30 

56 

214 

254 


60 

39 
ir4 
182 
75 
8i 
154" 

2445! 
26  }X 

30jx 
3'4 


274 

37/ 
3ix 

4'/9 
40/ 
42,6 

36/3 
47/6 
60/3 
23 
7% 
33/6 
19/9 
3l 
31 
20/3 
17  6 

m 
3404 
125 

8'4 

3 
J 

5*4 

6(6 

« 

7/ioJ 
4/3 
43/6 

4/ 
28/9 
2/74 
21/ 
27/ 
34/6 
3/7 
40/9 
40/6 
07/6 
4/44 
3/3 

2/1 1 
33/6 

6/6 

9' 
39'x 
11/44 
56/ 
4/1* 
(7/6 
87/6 
)l/9 
61/6 

45/ 
2/8 
10/10 
8,6 
4/4 
23/3 


13/6 

4 

7/ 

5fi, 

7V 

3A 

3 

644 

23 

3t« 

3*4 


99 
90 
97 

§6* 
8oi 
94 

92 

794 

793 

994 

924 

5'i 

374 

40 

494 

92* 

24J 

94 

224 

77 

'54 

583 

14 

97 

294 

56 

214 

253 


•93 
384 
184 
183 
75 
8x 
'53 
24* 
26j 
304 
32X 

1.4 

loA 
26J 


38/6 
3i 

42/ 
40/ 
42/3 

36/3 
47/6 
6r/  X 
23 
7A 
336 
20/ 
3H 
3^^ 
19/9 
'73 

3:?i 
124 

8'4 

si 

7/ 
i 

7/9 
4/3 
43/6 
4/ 
2S/9 

2/74 
26/ 
27/ 
34'3 
3/6 
40/6 
40/6 
17/6 
4/44 
3/14 
2/9 
3t/5 

6/3 

9/ 
3S/3 
11/ 
506 

4/14 
36/ 
89/ 
3'/3 
61/9 
4i/6 
2/^ 
■  0/9 

8/74 
4/3 
22/3 


13 '6 

■  4 
7/'4 
5fii 
88 

\\ 

^!,^ 

2i 

'3 

3:^ 
■A 


The  turnover  of  business  on  the  Stock  Exchange  this  week  hay- 
been  the  .smallest  for  some  considerable  time  past,  and,  gener- 
ally speaking,  the  tone  has  beon  dull  and  luisettled.  Gilt- 
edged  stocks  started  with  a  lair  show  of  strength.  Consols,  AYar 
Loans,  Indian  issues,  and  Hank  of  England  stock  all  putting 
on  fractions,  but  this  did  not  last  long,  and  the  earlier  gains, 
as  a  rule,  were  quickly  lost.  Colonial  issues  also  received  some 
support  to  begin  with,  but  they  became  neglected,  and  after- 
wards weak,  on  the  announcement  of  Uie  New  South  Wales 
issue.  In  the  Foreign  Market  very  little  transpired.  Russians 
again  dropped  away,  but  picked  up  a  little  on  repurchases  and  ' 
OT  the  feeling  that  things  must  shortly  take  a  turn.for  the  better. 
Japanese  were  firm,  and  Chileans  and  Uruguayans  also  gained 
to  some  extent,  but  Mexican  5  per  cents,  lost  as  m-uch  as  2 
points,  and  French   stocks  also  were  weak. 

Home  Railways  have  been  dull  throughout,  and  the  dividend 
announcements  so  far  made  have  done  nothing  to  give  the  market 
confidence.  The  Midland  dividend,  given  out  yesterday  after- 
noon, is  at  the  same  rate  as  last  year,  but  the  carry  forward  is 
rather  larger.  The  only  case  in  which  an  increased  distribution 
has  been  made  is  th.nt  of  the  Taff  Vale,  which  ipays  at  the  rate 
of  3J  per  cent,  against  3J  per  cent,  last  year,  besides  putting 
away  a  bit  extra  to  reserve.  Americ^an  Rails  were  decidedly 
flat,  both  Denvers  and  Chicago  Westerns  dropping  i  to  3  points, 
but  Mexican  Nationals  showed  a  slight  amount  of  strength. 
Camadian  Pacifies,  Grand  Trunks,  and  Mexicans  were  scarcely 
mentioned,  and  did  not  move  appreciably.  Argentine  Rails 
opened  well  on  morij  favourable  views  of  the  labour  situation, 
and  after  some  reaction  again  became  moderately  strong.  San* 
Paulos  have  been  rather  prominent,  and  have  advanced  smartly. 

Bank  shares  have  been  more  conspicuous  than  for  many  weeks 
past,  and  Chartered  of  India,  National  of  India,  and  Bank  of 
Australasia  were  particularly  good,  while  several  of  the  others 
gained  J  to  J.  Brewery  shares  have  suffered  the  natural  re- 
action  from  the  recent  sharp  rise,  and  Allsopps,  City  of  London, 
Watney,  Combe,  and  a  few  others  gave  way  to  a  greater  or 
less  extent.  Egyptian  securities  have  been  exceedingly  firm, 
and  all  the  leading  shares  are  substantially  higher,  while 
Nitrates  also  have  been  in  fair  demand.  Iron  and  Steel  shares, 
generally,  have  been  steady,  but  the  most  conspicuous  move- 
ments h.-i;ve  beon  rather  sharp  losses  in  Canadian  Cars  and  Otis 
Steel.  In  the  Land  grouip,  Nigers  came  suddenly  to  the  front 
and  advanced  several  shillings,  but  Hudson's  Bays  were  weak. 
Brazilian  Tractions  and  Mexican  Trams  gave  way,  but  among: 
Telegraiphs,  American  Marconi  gained  a  fraction.  Textile  shares,, 
as  a  rule,  have  been  unin(t<'resting  and  neglected,  with  Coats  a 
weak  spot.  In  the  Miscellaneous  Industrial  group,  Brunner, 
Monds  were  very  firm  on  the  capital  reorganisation  scheme, 
and  Welsbachs  were  in  demand,  probably  in  .anticipation  of  a 
favourable  report.  The  list  generally  showed  a  fair  amount  of 
strength. 

Oil  shares  have  not  attracted  much  attention,  and  the  move- 
ments have  been  irregular.  "  Shells,"  North  Caucasians,  Spies, 
and  a  few  others  were  good,  but  the  majority  of  the  list  has 
shown  a  dropping  tendency.  The  Rubber  market  has  fallen 
into  a  condition  of  comparative  stagnation,  and,  although  losses 
are  not  serious,  there  has  been  a  sad  lack  of  activity,  and  the 
changes  that  have  taken  place  are  mostly  adverse. 


Another  Big  Bank  Annalgamation. 

We  are  informed  that  an  agreement  has  been  en- 
tered into  between  the  boards  of  the  London  County 
and  Westminster  Bank,  Ltd.,  and  Parr's  Bank,  Ltd., 
for  the  amalgamation  of  the  two  businesses  under  the 
title  of  the  "  London  County  Westminster  and  Parr's- 
Bank,   Ltd." 

Under  the  agreement,  which  is  subject  to  the  con- 
sent of  the  Treasury  to  the  issue  of  the  new  capital, 
and  of  the  shareholders  to  the  passing  of  the  necessary 
resolutions,  two  shares  and  one-fifth  of  a  share  in  the- 
London  County  and  Westminster  Bank  (;^"5  paid)  will 
be  given  for  each  share  in  Parr's  Bank  (;^io  paid). 

Circulars  to  shareholders,  giving  fuller  details  and' 
notices  of  meetings,  will  be  issued  as  soon  as  possible. 

If  the  amalgamation  goes  through,  as  we  have- 
little  doubt  it  must,  the  combined  deposits  of  the  two 
banks  will  amount  to  ;^2 1 1 ,000,000,  while  against  a 
paid-up  capital  of  ;^6, 750,000  there  are  reserves 
totalling  ;^6,826,ooo.  Further  details  will  be  found 
in  the  banking  table  on  another  page.  The  joint  con- 
cern will  rank  second  only  to  the  London  City  and 
Midland  a.s  the  largest  in  the  world,  measured  by  de- 
posit and  current  accounts. 


LONDON    PRODUCE   MARKETS. 

A  quiet  state  of  affairs  was  again  apparent  in  most  directions, 
and  occasional  weakness  was  discernible  in  values. 

Sugar. — Market  remain' d  at  previous  level  of  prices. 

Coffee  — This  ma'ket  maintained  a  very  steady  tone,  and,  on 
balance,  a  fair  amount  of  business  was  transacted.  Auctions  pro- 
duced a  moderate  assortment,  and  of  East  India,  bold  Coorg.  sold 
io8s.  ;  washed  Dumont,  small  to  medium,  79s.  to  89s.  ;  bold.  95s. 


124 


'^be  Jnvestors'  IReview. 


February  2,  1918. 


to  96s.  6d..  and  Santos,  quay  terms,  71s.  6d.  to  733.  6d.  Future 
■deliveries  firm,  though  quiet. 

Cocoa  .lominal  as  a  rule,  trade  being  virtually  at  a  standstill. 

Spich.— Only  a  small  dertiand  at  easy  rates.  Fair  black  Singa- 
pore, spot,  sold,  IS.  2d.  ;  Tellicherry,  sellers,  is.  3jd.  ;  Aleppy, 
IS.  3jd.  ;  and  Muntok,  is.  7Jd.  Fair  Zanzibar  cloves,  spot, 
sellers,  is.  gd.  Tapioca  steady,  with  moderate  sales.  Fair  flake, 
spot,  7d.,  buyers.  Fair  Penang  seed  pearl,  703. ;  medium,  67s.  6d. ; 
and  fair  small  sago,  67s.  6d. 

Rice  in  good  demand,  and  sparingly  ofiered.  Beans  and  peas 
unaltered. 

Hemp.— East  India  slow,  and  business  quite  retail. 

Shellac. — Market  firm,  but  quiet.  Fair  T.N.,  spot,  sold,  385s.; 
March,  385s.,  387s.  6d.;   May,  380s  ,  383s. 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 
WBEK   ENDING    FEBRUARY  I,  1918. 


Last 
Week. 


I'tala 
Week. 


•ug»r— pet  cwl., 
daljr  14;,  98% 
polarisation 

TatpN  Cubes 
■Crushed..  .. 
•Granulated  .. 

Lyie's  granulated 

Foreign  granu- 
lated, Brst  marks 
f.o.b.,  spot 

(iertnaiiCubef.o.b. 

Prenctl  Cube 

prompt 

Crystallised,  West 
India 

Ooet,   68%    f.o.b. 

^aa— per  lb.,  duty 
I/-  lb. 

Indian  Pekoe 

Broken    ,, 

Orange    ,, 

Broken    ,, 
'Pekoe    Siuchong 

Ceylon  Pekoe     . . 

Broken  ,, 

Orange  „ 

Sroken  „ 

Pekoe  Souchong 

«0000»  —  pet  owt. 
duty  6a.  per  lb. 

rrinldad — per  owt 

Gtenada 

West  Africa..  .. 
•Ceylon  Plantation 
'Snayaqnil  Atiba.. 

QofT«e — per  cwt 
duty  42/-  per  cwt 

Bast  India    . .     . . 

lamaica 

Costa  Kioa   .,     ,. 

Provisions— 
Butter,  per  cwt 

Australian  finest 

Argentine     ..     .. 

irinu  Cibameries 

Dutch  diiio..     .. 

^URsian  finest  ,. 
a'aris  baskets      . , 

Oanish  finest 

Brittany  rolls  — 
doz.lb 

Bacon — pet  cwt. 

■Irish      

Continental . ,  . . 
CanadlaD  ..  .. 
Ametioan  . ,  . . 
dams — per  owt, 

Itish       

Canadian  , .  . . 
American      . .     . , 

3heese — per  cwt. 

Dutch 

Canadian     ..     ., 
..finglisb  Cheddai 
iViltsloaf     ..     ., 
New  Zealand 

Rice— per  cwt. 

iapan 

lUogoon  3  stars . 

8<gs— pet  no. 

English 

Irish      

Danish 


£   8.    d. 


2  13  9 
2  13  9 
2  6  g 
369 


nom. 
nom. 


269 
nom. 


nom. 
nom, 
nom. 
nom. 
nom, 
nom. 
nom. 
nom. 
nom. 
nom. 

d.  s.  d 

S7  o-  99  0 
ti5  D-  98  o 
68  Q-  77  o 
77  O'  94  0 
1 10/- 1 12/ 


97  0-115  o 

77  0-151  o 
97  o  ii3  o 


252/ 

252/ 
nom. 
nom. 
nom. 
nom 
nom 

nom. 


172/ 
nom. 
I7I/-I72/ 

i72/-iiio/ 

203/ 
I62/-I65/ 
I25/-I65/ 

129/6-160/- 
nom. 
142/ 
nom. 
nom. 

".    d. 
nom. 
26    3 


44  0-45  o 

40  0-42  o 

nom. 


'Spelter— 

G.O.B.  as  to  posi- 
tion      

Flour— per  sack. 

Country  Straight 

Runs  ex  Mill.. 


a  13 
2  13 
2  6 
2    6 


nom. 
nom. 


269 
nom. 

.  d.  B-  d 

nom. 

nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
ni-m. 
nom. 

.  d.  ^  d. 

87  o  -99  c 
S5  o  -98  o 
68  o  -77  o 
77  o  -94  o 
110/-112/ 


97  0-115  o 
77  0-51 

97  o  iiS  o 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


172/ 

I7I/-I72/ 
1 72/- 1  to/ 

203/ 
162/- 165/ 
125/-165/ 

129/6-160/ 
nom. 
142/ 

nom. 

nom. 


nom. 
26    3 


44  0  45  o 

38   C-4C  o 

nom. 


44/3 


44/3 


Wool— per  lb. 

u  s  t  r  a  1  I  a  n 

Scoured  Merino 

Scoured  Cr'sabr'd 

Greasy  Merino    . . 

Greasy  Crossbred 

New     Zealanct 

(scoured)  Merino 

Greasy  Crossbred 

Cape  snow  white 

Indlarubfaerp.ih 

Plantation,      Spot 
Crepe  . .     . . 

Coal— per  ton 
Durham,  best  .. 
Seconds  .. 
East  Hartlepool. 
Seconds  .. 
Sleams,  best 
Seconds 


Last 
Week. 


Lead— per  ton. 
English  Prg.. 
Foreign  solt,  net 

Quicksilver— p'  t 
bottle  tirsthann 

Tin— per  ton 
English  liigota 

Do.    bnts 
Standard  oasb     . . 
Tm  Plates, per  boji 
Copper — per  ton. 
English,     Totuli 

per  ton 
Best  Selected 

Slieets 

Standard      ..     -  - 
Jute— per   ton. 
Native    firsts    for 
shipment 

Unseed  per  ton. 
Rape,  rebned  . . . 

,,        crude   ... 
Coifn  Set:a,cru 
Ditto,  refined     . 
Petroleum  Oil, p*- 

Bibs. 
Water  White 
Oil  Seeds, LiDse" 
Calcutta- pel   ton 
Spjt 
Uape     


Iron— pet  ton 
Cleveland  Cash  . 
Tobacco  —   duiv 

uiiniaiHifactiirH> 

7/4  to  6/0   per  lb. 
Maryland  &  On  < 

pet  lb.  bend 
Viiginialeat. 
Kemucky  leal 
Latakia..  .. 
Havana . .  . . 
Manila  ..  .. 
Cigars,   duty   10/6 

pec  lb. 

Timber— Wood. 

Pitch  tine    .. 

Itldldll     LcalK 

Turpentine— 

I  American  Spot 

Copra— per  ton 

Malabar 
Cey  on  . . 
F.M.S.  Sineapore 
P.M.    Straits 


£    -.  d, 

nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom. 


0    «    3i 


nom. 
nom 
nom 
nom 
32  6 
29  6 

£    ..   H 
nom. 

nom. 


yo'-303 

f 3 12-304 

f '99 

nom. 


nom. 
Cii<)-£i2i 

£uy 

iTiio-IIoJ 


i-58-f63 
£71 

m 

£bo 
£67-if95 


•/7i 
1/84 


29  '5 
£i9-io£3o 


nom 
08-2 
07-011 
2    >  -5 
1666 

nom. 

2/  upds. 


500/—  40v. 
380/—  701, 


126/ 


46  0 
46  o 
45  15 
43  10 


This 
Week. 


£  «.  d. 

nom. 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


2    3 


nora. 
nom. 
nom. 
nom. 
32  6 
29    6 

£      H.   d. 

nom. 
£29J-£28J 


f293-303 

£299-304 

£296J 

aom. 


nom. 
£>i9-£'23 

£«47  , 
£iio-lloJ 


£58-f63 

£66 

£60 

£67-£95 


i/8i 


29    15      0 

£29-io£30 


nom. 
o  8— a    I 
o  7 — 0  II 
2  0—5    o 
.6-6    6 

nom. 

2/  upds. 


300/— 400; 
38J;— 700; 


46  o 
46  o 
45  '5 

45  'o 


Rubber  dull,  and  prices  are  lower.  Plantation,  spot,  crepe, 
sold,  2s.  4d.  to  2s.  3d. ;  February,  2S.  4d.  to  2s.  3jd.  ;  April-June, 
2S.  5jd.  to  23.  4d.  Standard  ribbed  smoktd  s.eet,  spot,  sold, 
23.  3jd.  to  2s.  2Jd.  Fine  tiard  Para,  spot,  quoted  2S.  7jd. ;  soft 
fine  spot,  2S.  3d.  ;  ball,  is.  yd. 

Corn  (Mark  Lane). — The  general  tone  proved  firm  for  all 
cereals,  but  trade  was  quite  ol  a  retail  character,  offerings  being 
light.  Quotations  : — Wheat  :  Engli-h  ruled  at  753.  6d.  per  qr.  for 
both  whites  and  rtds  per  504  lbs.  Of  imported  descriptions.  No.  i 
Northern  Manitoba,  8is.  6d.  to  82s.  3d.  ;  No.  2  ditto,  803  to 
80s.  gd. ;  Australian,  83s.  6d.  to  84s.  3d. ;  and  La  Plata,  8is.  6d. 
to  82s.  per  qr.  (496  lbs.),  all  landed  terms.    Flour  :  English  in  good 


request,  but  only  a  limited  quantity  available,  while  available 
supplies  of  imported  makes  find  ready  buyers.  Home  milled  (G.R.) 
quoted  44s.  3d.  per  sack,  ex  mill,  and  Canadian  export,  51s.  gd., 
ex  warehouse,  per  280  lbs.  Barley  sparingly  offered,  and  held  for 
full  rates.  English  quoted  62s.  gd.  per  448  lbs.,  and  Californian 
milling  933.,  landed,  448  lbs.  Maize  remains  out  of  offer,  and 
quite  nominal.  Oats  firmly  held,  with  scanty  supplies  put  forward. 
English,  45s.  3d.  per  336  lbs.,  and  American  white  clipped  No.  2 
6is.  to  &2S.,  landed,  320  lbs. 


The  Week  in   Minos, 

The  outstanding  feature  in  the  Mining  Markets  this  week 
has  been  the  fresh  activity  of  Khodesian  shares,  stimulated  by 
the  declaration  of  a  maiden  dividend  by  the  Falcon  Mines. 
Rand  .shares  have  been  rather  easier  pending  a  further  develop- 
ment in  the  proposals  for  assisting  the  low-grade  mines.  Tin 
shares  have  been  prominently  firm,  especially  East  Pools,  on 
the  increasing  output  of  the  mine. 

South  and  West  Afxicans. 

1  here  has  been  a  moderate  amount  of  selling  of  Rand  shares 
this  week.  A  line  of  Brakparus  came  on  the  market,  and  its 
liquidation  caused  the  price  to  fall  J  to  5^4.  Modder  Leases 
have  fallen  5-32  to  3  23-32,  New  Modderfontein  |  to  23,  Modder 
Deeps  ^  to  7I,  and  Springs  3-32  to  3  25-32.  On  the  other 
hand,  Wit  Deeps  have  recovered  gd.  to  9s.  6d.  Land  shares 
have  been  supported,  while  Mozambiques  rose  2s.  3d.  to  i6s. 
on  a  good  demand  suddenly  springing  up  for'  these  shares. 
Among  diamond  shares,  De  Beers  Deferreds  have  fallen  -fV 
to  i3i,  but  the  Prefs.  have  put  on  J  at  13J.  Rhodesian  shares 
have  again,  been  active  and  firm.  The  Falcon  dividend  of  4s. 
per  share  was  double  the  amount  expected,  and  the  shares 
consequently  rose  sharply,  advancing  to  29s.,  the  highest  level 
touched  since  1913.  This  quotation  shows  an  advance  of 
7s.  3d.  on  the  week.  Gold  Fields  Rhodesian,  which  holds 
89,700  Falcon  shares  and  ^152,000  of  debentures,  and  Rhode. 
sia  Consolidated,  which  still  holds  a  large  number  of  Falcon 
sh.ires,  were  sympathetically  affected,  and  rose  gd.  to  gs.,  and 
IS.  to  4s.  3d.,  respectively.  Bwanas  were  supported  on  an 
official  announcement  as  .to  the  signing  of  an  agreement  with 
the  Minerals  .Separation  Co.,  closing  at  5s.  gd.,  while  Lonely 
Reefs  advanced  6d.  to  383.  on  further  favourable  development 
news.  Gaika  recovered  f  to  ij.  An  exception  to  the  general 
tendency  was  Rezende,  which  fell  £  to  4  on  a  cablegram  an- 
nouncing the  partial  flooding  of  the  mine  and  the  stoppage  of 
mining  owing  to  want  of  power,  serious  damage  having  been 
caused  by  abnormally  heavy  rains.  In  the  West  African  sec- 
tion, Ashanti  Goldfields  declined  is.  3d.  to  20s.  6d.  on  the 
news  of  a  temporary  reduction  of  profits,  but  West  African 
Mahoganys  doubled  their  price  by  rising  to  5s.  3d. 
Copper  and  Miscellaneous. 

Copper  shares  have  moved  irregularly.  Mount  Lyalls  are 
rather  better  at  26s.  3d.,  but  Rio  Tintos  have  declined  J  to  64J. 
Tin  shares  have  been  in  request  on  the  high  price  ruling  for 
the  metal.  Eas.t  Pools  have  been  actively  supported,  and  are 
2s  gd.  higher  at  25s.  6d.,  while  South  Croftys  have  risen  is. 
to  27s.  gd.  Malayans  at  2  3-16  are  also  higher.  In  the  Broken 
Hill  section.   Zinc    Prefs.  have  improved   is.    6d.    to  53s.,    but 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 


Head  Office— ft  OM  Broad  Street.  E.C. 


£1,276,747  10  O 

669.685  0  O 

375,680  1  1  8 

606.962  10  O 


Subscribed  Capital  

Paid  up  Capital 

Reserve  Fund  and  Undivided  Profits 

Reserve  Liability  of  Proprietors 
REMITTANCES  made  by  CABLE. 
DRAFTS,   LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  iMoed  opon 

Branches  and  A^^ents. 
B(LLS  on  Ausiralasia  NEGOTIATED  or  sent  for  collection.  * 

D.ar03nS  KcCciVED  for  periods  and  at  rates  which  miv  be  a^certPliMd 

on    application,  and    Ranking    business    of    pv^^cy  description    eonduat»d 

with   *   ' c'-a ''■ .  ^_^ ^ ^___ 

NOTICE. 
MEMBERS  Of  the  STOCK  EXCHANGE  are  NOT  ALt/OWED  to 
ADVERTISE  for  business  purposes,  or  to  issue  Circulars  or  Business 
Communications  to  persons  other  than  their  own  Principals.  Persons  who 
advertise  as  Brokers  or  Share  dealers  are  Not  Members  of  the  Stock  Exchange 
Dr  in  any  way  under  the  control  of  the  Committee  Members  issuing  Contract 
Notc^  are  requirei  to  use  such  a  form  as  will  provide  that  the  words  "  Member 
of  the  Strck  Exchange,  London,"  shall  imniMiately  follow  the  signature.  A 
List  of  Members  of  the  Stock  Exchange  who  are  Stock  and  Share  Broken 
may  be  seen  at  the  Banholomew-lane  entrance  to  the  Bank  of  iSogland,  oi 
obtained  on  applicalion  to 

EDWARD  PATTERTHWAITE, 
Secretary  to  the  Commiftee  of  the  Stock  Excbaage. 
CoTtHnitlee  Room.  Ttie  Stock  Exrhanee,  London,  E.C.  2. 

MclNTYRE,  H:GG,  MARSH  &  CO.,  LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  SHARE  REGISTER 
of  Transfers  of  the  above  Company  will  be  CLOSED  from  Feb- 
ruarv  2nd  to  15th  next  (both  dates  inclusive)  for  the  preparation 
of  the  Dividend  Warrants. 

By  Order  of  the  Board, 

H.  T.  MUGGERIDGE, 
2,  3,  &  4,  New  Basinghall  Street,  Secretary. 

London.  E.C.  2. 

January  31st,  1918. 


February  2,  1918. 


Hbe  Jnvestore'  TRevtew. 


'25 


I 


I 


British  at  37s.  and  Sulphide  Prefs.  at  38s.  3d.  are  both  lower. 
Mysore  shares  have  been  in  request,  and  are  i  higher  at  3  3-16. 
Russian  descriptions  have  made  a  fractional  recovery ;  Kusso- 
Asiatics  are  J   higher   at  2^,   and   Kysbtims    are  -^  better   at 

MINING    NEWS. 

ASHA.NT!  GoLDFiELDS  CoHPORATio.N. — The  Company  reports 
that  more  difficulty  than  usual  has  been  experienced  lately,  owing 
to  heavy  fa!ls  of  ground  in  the  Ashanti  stoj^es.  In  consequence 
the  January  output  and  profit  were  reduced,  but  it  is  hoped  that 
the  Ashanti  mine  output  will,  when  repairs  have  been  effected, 
be  normal  again  within  a  few  weeks.  The  directors  have  decided 
tc  close  down  the  Ayeinm  Mine  from  February  i  for  the  dura- 
tion of  the  war.  Under  present  circumstances,  the  profit  now 
being  made  at  the  Ayeinm  Mine  is  very  small.  The  profits  for 
January  and  February  will  be  adversely  affected  for  these 
reasons,  but  as  from  March  i  it  is  vanticipated  that,  although 
the  output  will  be  reduced  to  about  ^^37,500,  there  will  be  little, 
if  any,  reduction  in  profit  per  month  below  the  average  amount 
previously  earned. 

Springs  Mines. — It  is  officially  announced  that  the  scheme  for 
financing  the  eastern  portion  of  the  de  Rietfontein  Government 
area,  requiring  an  expenditure  of  £H^o.ooo,  has  been  amended. 
The  Consolidated  Mines  Selection  Co.  had  contracted  to  pur- 
chase 200,000  shares  at  £;i  each,  guaranteed  all  the  funds  re- 
quired to  carry  out  the  development  ot  the  new  property,  and 
also  acquired  options  to  take  up  at  ^"3  per  share  300,000  Springs 
Mines  shares.  Now,  however,  in  response  to  criticisms,  the 
guarantee  of  further  loans  and  the  option  nn  300,000  sha.res  have 
been  cancelled.  The  Consolidated  Co.  has  definitely  agreed  to 
take  up  a  further  300,000  shares  at  ;^3  each,  as  and  when  addi- 
tional funds  are  required  by  the  Springs  Mines,  so  that  the 
total  obligation  of  the  Consolidated  Co.  is  to  take  up  500,000 
shares  at  £2  each,  instead  of  200,000.  The  Rand  Selection  Cor- 
poration is  participating  in  this  amended  arrangement. 

West  African  Gold  Outi-ut. — In  December  the  production 
of  gold  was  ;^i22,6o2,  a  decrease  of  ;^23,8o7,  making  the  total 
for  the  year  .^1,529,977,  a  decrease  of  ^85,329  on  1916,  and  of 
jf  176,496  on  1915.  The  following  table  shows  the  monthly  pro- 
-diiction  since  January,  1913. 


Month. 

1917. 

1916. 

1915- 

1914. 

1913. 

£ 

£ 

£ 

£ 

£ 

3an.     . . 

131.665 

140,579 

143,649 

128  862 

144  262 

Teb.     . . 

104,892 

137,739 

144  034 

123.169 

137.038 

158,727 

I50,9'S7 

153,770 

13 1. -,92 

150,160 

April    .. 

123.825 

135,976 

149.978 

131,697 

146,220 

May     .. 

121,104 

132,9/6 

142,121 

145,227 

142,617 

June    .. 

114,489 

127,107 

13^,289 

147,289 

125.764 

July     .. 

142.017 

128,574 

140,290 

15  07, 

132.936 

Aug.     . . 

130,278 

125,143 

139.364 

150,386 

126,090 

Sept.    .. 

127.168 

127,138 

135,744 

154  316 

132,394 

Oct.     .. 

126,295 

132,577 

141. 771 

159,410 

137.153 

I2'.,qi5 

130,101 

122,138 

■54,674 

132,694 

Dec.    .. 

122  6q2 

146,419 

158,323 
«. 706,473 

147,699 
1,727,044 

127.472 

Totals 

'- 

1.529,977 

1,615,306 

1 ,634,700 

Italian  News. 

A  fifth  National  Loan  has  been  floated  by  Italy  in 
Consols  at  5  per  cent,  interest,  calculated  from 
January  i,  1918,  payable  July  i  and  January  i  each 
year.  The  issue  price  is  86.50  per  loof.,  nominal. 
Consequently  revenue  will  be  of  5.78  per  cent.  The 
bonds  cannot  be  converted  until  1931,  and  the  loan  is 
exempted  from  all  present  and  future  taxation.  Sub- 
scribers will  be  entitled  to  all  the  advantages  inherent 
to  all  future  loans.  Subscriptions  for  a  hundred  francs 
must  be  paid  whole,  while  those  who  subscribe  for 
higher  sums  will  be  allowed  to  pay  by  instalments. 

The  public  income  of  the  first  two  quarters,  1917-18, 
shows  that  taxation  has  yielded  half  a  million  more  than 
the  preceding  year,  and  this  result  is  particularly  wel- 
come at  the  moment  when  the  burden  on  the  budget  is 
growing  heavier  through  the  fresh  interest  charges  to 
be  paid.  The  total  increase  reaches  472,456,749  lire 
over  the  corresponding  period.  This  enables  us  to 
foresee  that  during  the  current  financial  year  about  3 
milliards  750  millions  will  be  reached.  The  revenue 
will  be  just  the  double  of  what  it  was  in  the  last  year 
before  we  entered  the  war.  This  means  that  the  Italian 
Government  has  provided  enough  through  fresh  taxa- 

Ition  to  ensure  the  payment  of  interest  at  5  per  cent,  on 
37  milliards.  During  the  two  earliest  quarters  of  1917-18 
the  increase  has  been  brought  about  to  the  extent  of 
3-5ths  by  direct  taxation,  and  203  millions  has  come 
from  the  tax  on  war  profits.  Among  the  various  taxes 
•on  consumption  the  increase  of  about  47  millions  comes 
almost  entirely  from  custom  duties,  which  have  risen 
i. 


about  80  millions,  and  the  duties  on  coffee,  wine,  and 
spirits,  proceeds  of  State  monopolies  like  tobacco, 
lotteries,  matches,  &c.,  have  yielded  100  millions  more. 
From  the  annual  report  of  the  National  Insurance  Insti- 
tute we  gather  that  the  capital  insured  in  1917  was 
126,000,000  lire,  while  during  the  preceding  year  it  had 
been  only  100,596,000  lire.  The  situation  continually 
improved  during  1917,  and  last  month  proposals  have 
been  made  for  22  millions,  against  those  for  1916,  repre- 
senting a  capital  to  be  insured  for  10,731,000  lire.  The 
flowing  in  of  savings  at  the  same  institute  is  one  proof 
more  of  the  economic  strength  of  the  nation,  and  of  the 
trust  with  which  the  industrial  classes  look  to  the 
future  of  the  country.  The  institute  has  already  sub- 
scribed for  29  millions  to  the  loan. 

From  the  Treasury  accounts  up  to  October  31  last 
the  cost  of  the  war  is  shown  to  be  258,609  million  lire, 
248,417  of  which  are  to  be  ascribed  to  the  Army, 
and  10,190  to  the  Navy.  To  this  sum  should  be 
added  the  interest  paid  on  debts,  indemnities  and  war 
pensions  summing  up  to  many  hundred  millions.  Up 
to  December,  191 7,  29  milliards  had  been  distributed 
to  the  families  of  men  called  to  arms. 

A  Bill,  proposed  by  On.  Nitti,  regarding  a  free  insur- 
ance for  all  fighting  men,  has  been  passed.  One  policy 
regards  those  who  have  died  on  the  field,  or  through 
wounds  or  illness  caught  in  service.  To  the  heirs  of 
the  insured  will  be  paid  a  sum  of  500  frs.  According 
to  the  wish  of  the  insured,  the  sum  will  be  paid  after  a 
lapse  of  15  or  20  years  since  their  death.  In  the  first 
case,  the  National  Insurance  Institute  will  pay  1,000 
lire,  and  1,325  lire  in  the  second,  this  without  impair- 
ing the  soldier's  right  to  the  war  pension.  The  second 
policy  regards  those  soldiers  whose  death,  not  being 
due  to  fighting,  would  not  entitle  the  families  to  war 
pensions.  In  this  case  an  amount  of  1,000  lire  will  be 
paid  after  15  or  20  years,  according  to  the  wish  of  the 
insured.  If  payment  is  required  at  the  end  of  15  years 
the  amount  will  be  2,000  lire,  if  after  20  years,  of  2,650 
lire.  This  policy  can  be  paid  to  the  man  himself  if 
still  living  after  30  years  since  its  issue,  but  it  can  be 
also  exacted  three  months  after  the  dtemobilisation,  pro- 
vided guarantees  are  given  that  the  money  is  going 
to  be  employed  in  the  acquisition  of  land,  animals,  or 
agricultural  implements,  and  this,  in  order  that  the  col- 
lective capital  may  serve  to  improve  the  individual  as 
well  as  the  general  condition  of  agricultural  production. 
A  similar  Bill  is  under  examination  dealing  with  officers. 
The  cost  is  estimated  at  3  milliards,  but  will,  of  course, 
considerably  increase  during  the  prosecution  of  the  war. 
By  a  recent  decree,  all  placing  of  foreign  bonds  of 
fresh  issue  on  the  Italian  market  will  be  subject  to  the 
approval  of  the  Minister  of  the  Treasury,  and  to  the 
observance  of  the  conditions  under  which  the  approval 
mav  be  given.  The  same  rule  applies  also  if  the  bonds 
should  be  left  on  deposit  abroad.  Fines  will  be  reckoned 
according  to  the  amount  represented  by  the  bonds,  and 
in  no  case  will  be  less  than  to,ooo  lire.  Another  decree 
entitles  the  Treasury  to  draw  from  the  three  banking 
institutions,  Banca  dTtalia,  Banca  di  Sconto,  and  Banca 
di  Napoli,  a  total  of  800  million  lire. 

Some  English  papers  have  recently  stated  that  while 
the  cost  of  English  coal  landed  at  our  ports  was 
50S.  6d.  per  ton,  with  the  addition  of  the  tax  on  war 
risks,  it  was  sold  in  Italy  at  about  ;^24  per  ton.  It 
must  be  noted  that  the  price  of  50s.  6d.  concerned  only 
part  of  the  coal  imported,  viz.,  the  coal  supplied  by 
the  British  Admiralty  in  order  to  enable  some  Govern- 
ment departments  to  face  the  present  difficulties.  The 
rest,  by  far  the  largest  amount,  for  the  supply  of  Italian 
industries,  cannot  be  imported  from  England  at  less 
than  185s.  per  ton,  considering  the  present  rate  of 
freights.  The  coal  supplied  to  industries  by  our  Coal 
Commission  costs  385  lire  per  ton,  a  price  fixed  in 
October  last,  when  the  exchange  was  at  36  lire  to  the 
pound.  Now  that  the  exchange  is  at  41,  and  freights 
have  gone  still  higher,  the  price  has  been  maintained  at 
385  lire,  corresponding  to  little  more  than  £(^,  instead 
of  ;^24,  as  was  erroneously  stated,  and,  we  believe, 
already  corrected. — From  our  Italian  Correspondent. 


126 


Zbc  5nve8tor3'  IRevtew. 


February  2,  1918. 


What    Balance   Sheets   Tell. 


LONDON    AND    BLACKWALL    RAILWAY    CO. 

This  company  derives  nearly  the  whole  of  its  income  from 
the  rent  payable  by  the  Great  Eastern  Railway.  Kor  1916  that 
fell  /^  14,000  owing  to  income-tax  deduction,  and  there  was  a 
further  fall  last  year  of  /3,8oo,  bringing  the  nett  amount  down 
to  ;,^ 1 14,130.  However,  fixed  charges  required  somewhat  less, 
and  the  balance  available  is  only  ;^2,i5o  lower  at  ^^84,800. 
The  usual  dividend  of  4J  per  cent,  absorbs  ^^2,600  less,  and 
consequently  the  carry  forward  is  increased  by  ;i;^5oo  to  ;^6,i6o. 
There  was  no  expenditure  on  capital  account,  but  it  is  estimated 
that  ;f  500  will  be  required   this  year  ! 

EAST    INDIAN    RAILWAY    CO. 

In  the  half-year  to  September  30  the  gross  receipts  amounted 
to  Rs.  5,93,82,000,  an  increase  of  Rs.  31,92,000,  while  the  work- 
ing expenses  were  Rs.  2,01,87,000,  an  increase  of  Rs.  4,31,000, 
the  percentage  to  receipts  being  1.17  lower  at  33. 99  per  cent.  It 
is  explained  that  this  reduction  is  attributable  to  restricted 
renewals  of  permanent  way  and  rolling  stock  owing  to  the  im- 
possibility under  existing  conditions  of  obtaining  the  necessary 
materials  for  that  purpose.  Nett  earnings,  including  the  sum 
received  for  working  the  Delhi-Uraballa-Knlka  line,  amounted 
to  Rs.  3,80,55,000,  and  after  meeting  fixed  charges  there  is  a 
surplus  of  Rs.  1,85,48,000,  of  which  the  company's  share  is 
Rs.  14,82,000.  This  enables  the  directors  to  declare  a  dividend 
of  £1  9s.  per  cent,  on  the  deferred  annuity  and  "  D  "  capital  in 
addition  to  the  guaranteed  interest  of  2  per  cent,  for  the  half- 
year,  making  in  all  £3  9s.  per  cent,  against  £3  7s.  for  the 
corresponding  period.  Nothing  more  has  been  heard  from  the 
Secretary  of  State  with  regard  to  the  notice  given  of  his  inten- 
tion to  determine  the  company's  contract  on  December  31,  1919, 
but  a  further  communication  is  expected,  and  will  be  submitted 
to  the  deferred  annuitants  in  due  course. 

DUBLIN    UNITED  TRAMWAYS   CO.    (1896),   LTD. 

Passeng;er  receipts  for  the  past  year  amounted  to  ;^353,84o, 
an  increase  of  ^'34,000,  and  other  revenue  brought  the  total 
earnings  up  to  ^^'369, 940.  Expenses  came  to  ^^251,950,  an  in- 
crease of  ;^3i,ooo,  most  of  which  is  due  to  operation,  traffic, 
and  genera!  charges.  After  providing  for  interest,  &c.,  the 
balance  is  ;^5,ooo  larger  at  £g6,23o,  but  the  dividend  for  the 
j'ear  is  left  at  4}  per  cent.  (2  per  cent,  of  which  has  been  paid 
as  intterim),  and  special  appropriations  absorb  .^33,500,  against 
^^27,000,  leaving  ;ifi3,46o  to  be  carried  forward,  or  jf  100  more 
than  last  year.  The  number  of  passengers  carried  showed  an 
increase  of  6,200,000  at  66,624,000,  and  the  car  mileage  was 
nearly  300,000  higher  at  7,733,000.  Progress  is  slow,  but  the 
results  on  the  whole  may  be  regarded  as  fairly  satisfactory  in 
the  circumstances. 

EDINBURGH    AND    DISTRICT   TRAMWAYS    CO.,    LTD. 

There  was  a  substantial  improvement  in  the  affairs  of  this 
rather  unfortunati,'  company  last  year,  gross  receipts  showing 
an  increase  of  /r58,ooc  at  /^375,99'-'>  Expenses  at  ;if34i,77o 
were  £1^,000  higher,  and  consequently  there  is  a  nett  revenue 
of  /'34,32o,  against  a  debit  balance  of  ^^19,895  in  igi6.  After 
paying  interest  and  two  years'  capital  redemption  fund  contri- 
butions. ^4,500  is  set  aside  for  investment  depreciation,  and 
the  balance  of  /■  1,780  is  earmarked  as  a  provision  for  con- 
tingent liabilities.  Two  years'  dividend  on  the  preferred 
shares  is  in  arrears.  Rent  payable  to  the  Edinburgh  Corpora- 
tion is  /"i04,ooo,  which  seems  considerably  higher  thnn  the 
undertaking  can  afford  in  normal  times,  and  it  wou'd  probably 
be  to  the  bf'nefit  of  the  public  it  some  abatement  were  granted. 
A  service  that  cannot  earn  a  modest  rate  of  interest  on  the 
capital  involved  is  seldom  satisfactory. 

MELBOURNE    ELECTRIC   SUPPLY   CO.,    LTD. 

In  the  year  to  August  31  last  the  gross  profits  amounted  to 
;fi5i,3oo,  an  increase  of  ^S.ooo,  or  5J  per  cent.,  and  in  view 
of  the  difficult  conditions  prevailing  this  must  be  considered 
satisfactory.  After  paying  fixed  charges  and  setting  aside 
^10,000  to  reserve  (raising  it  to  ;fioo.ooo)  and  ;f2o,ooo  for 
income-tax  and  excess  profits  duty,  other  appropriations  of 
^'9,250  reduce  the  balance  to  ;,f69.7io,  or  £2,yon  less  than  Last 
time.  The  dividend  of  10  per  cent,  is  repeated  and  the  carry 
forward  is  incre.ised  by  /■  10,670  to  ^^72,810,  subject  to  excess 
duty.  Capita!  expenditure  during  the  ye.ir  amounted  to 
;fii9,5i;o,  but  the  company  was  able  to  place  Si. 250  000  bonds 
in  the  United  States,  and  it  has  ;^i8o,ooo  in  hand  for  further 
requirements  as  and  when  necessary.  The  number  of  con- 
sumers in  Melbourne  increased  by  4,410  to  32,140,  and  a  supply 
of  light  and  power  is  now  available  in  neatly  600  miles  of 
.streets. 

ADELAIDE    ELECTRIC    SUPPLY    CO.,    LTD. 

Gro.ss  receipts  for  the  year  to  August  31  last  were  ^^154. 450, 
an  increase  of  £i!i.oon.  or  13  per  cent.  After  meeting  fixed 
charges  and  pl.aring  /"i;,ooo  to  reserve  for  in'-ome-tax,  frc, 
there  is  a  ba'.ince  of  /" 58,210.  out  of  which  the  dividend  of  12 
per  rent,  is  reoeated,  jnd  the  balance  forward  is  raised  by 
fifira  to  /"lo  Son.  I'he  ntimber  of  consumers  is  now  19,590,  Rn 
incre.->se  of  t,86o.  or  over  10  per  cent.,  and  the  power  supply 
h?.s  also  increased  bv  to  per  cent.,  .so  that  progress  continues  to 
be  Bati.-if.->ctorv.  Sunply  of  light  and  j>ower  is  now  available 
in  A6n  miles  of  streets,  an  increase  of  20  mi'es  during  the  year, 
and  the  capital  expenditure  for  the  la  months  amounted  to 
;f 40.630- 


WM.   HOLLIN8  AND   CO.,  LTD. 

This  big  Nottingham  firm  in  the  year  to  November  30  re- 
coveied  pi\rt  of  the  ground  lost  in  the  previous  12  months, 
trading  profits  being  ;{^6,ooo  higher  at  ^[99,200,  whereas  there 
was  a  drop  of  ;fi5,70o  in  1916.  Nett  profits  are  up  £2,yM  at 
;f88,590,  and  after  again  placing  £2,iyx>  to  capital  re.serve  the 
dividend  of  7i  per  cent,  and  bonus  of  2\  per  cent,  are  repeated, 
;^io,ooo  is  again  placer]  to  reserve,  and  ;^20,ooo,  or  ;^2,ooo 
more,  to  income-tax  reserve.  The  balance  of  ;/'2o,7(/>  is  a  trifle 
larger  than  the  amount  brought  in,  but  an  employees'  profit- 
sharing  scheme  was  inaugurated  last  year,  which  absorbs 
^^8,090,  and  leaves  £i3,yoo  to  be  carried  forward.  Creditors 
show  an  increase  of  /c)6,ooo  at  ;£^ 297, 570,  stocks  are  up  ^f  173,000 
*t  ;f546.4oo>  debtors  /'■jo,ooo  at  /■32i,5oo,  and  investments 
;^3o,ooo  at  jf  95,700,  with  the  renuU  that  cash  in  hand  has  been 
reduced  from  ^40.000  to  /()70.  liut  the  bu.^iness  is  a  fine  one, 
and  the  temporary  shortage  of  cash  need  caujic  no  uneasiness. 

MCINTYRE,  HOCC,  MARSH  AND  CO.,  LTD. 

Results  for  the  year  to  November  30  were  very  similar  to  those 
of  the  previous  twelve  months.  Trading  profits  amounted  to 
^^44,140,  an  increase  of  ;^i,6oo,  and  the  nett  profit  is  ;if6oo  up 
at  j£^34.S3".  but  ^7,000  more  was  brought  in.  After  again 
paying  7  per  cent,  on  the  participating  preference  shares  and 
10  per  cent,  on  the  ordinary,  and  placing  jf  5,000  to  reserve 
(which  will  then  stand  at  ;^ 70,000^  the  balance  forward  is  in- 
creased by  jf  7,500  to  ^41,170.  Creditors  and  bills  payable  are 
up  ^27,000  at  jf 82,000,  and  stocks  are  ;f  100,000  higher  at 
;f27o,ooo,  but  debtors  and  bills  are  down  ^'35,000  at  ;^7i,ooo, 
and  cash  has  fallen  ;^24,ooo  to  ;f  3,900.  These  changes  are 
merely  incidental  to  the  fluctuations  of  business,  and  have  no 
particular  significance. 

LONDON    PRODUCE    CLEARING-HOUSE,    LTD. 

Last  year's  nett  profit  amounted  to  /^  10,320,  an  increase  of 
;if  1,000,  and  added  to  the  amount  brought  in  there  is  a  balance 
of  ;f38,i40,  which  it  is  proposed  to  carry  forward.  Cash  has 
fallen  ;^3,ooo  and  investments  are  jf  7,000  lower  at  jf  103,000, 
but  the  company  has  jf  138,000  advanced  to  German  clients  and 
;^5i,ooo  to  English  clients  (partly  pre-war  advances  against 
sugar  stored  in  Germany),  so  the  position  is  not  very  comfort- 
able for  the  time  being,  and  dividends  cannot  be  resumed  until 
these  matters  are  satisfactorily  cleared  up. 

PUBLIC    BENEFIT    BOOT   CO.,    LTD. 

Last  year  the  trading  profit  amounted  to  ^^83,000,  an  increase 
of  ^11,400,  which  follows  a  gain  of  ;f2i,ooo  in  1916.  Income-_ 
tax,  however,  required  ;^2,ooo  more  at  ;^7,S5o,  and  ^^  14,000 
more  at  ^43,000  is  set  aside  for  excess  duty,  so  that  the  nett 
profit  comes  out  ^.f  6,400  lower  at  ;^ 26,940.  The  amount  brought 
in  was  ^4,000  larger,  and  after  placing  ^1^4,000  against  ;^8,5oo 
to  reserve  the  dividend  of  10  per  cent,  is  repeated  on  the  deferred 
shares,  and  the  balance  forward  is  increased  by  ^^3,000  to 
;f  14,570.  Except  for  an  advance  of  ;^ 70,000  to  ;f 280,000  in 
stocks  there  is  nothing  in  the  balance-sheet  which  calls  for 
remark. 

IMPERIAL  TOBACCO  CO.  OF  CANADA,  LTD. 

Nett  profits  for  the  year  to  September  30  are  given  as 
jf  504,500,  a  decrease  of  ;^62,ooo  as  con.pared  with  the  previous 
twelve  months,  but  the  reduction  is  probably  more  apparent 
than  real  as  on  this  occasion  they  are  struck  after  providing 
for  war  taxes.  Anyhow,  ;^8o,ooo  more  was  brought  in,  and  the 
available  balance  is  ;if  17,000  larger  at  ;if  704,930,  but  the  com- 
pany is  terribly  loaded  with  capital  (^7,200,000  of  it  all  told, 
of  which  goodwill  and  trade  marks  account  for  ;f  5,510,000),  and 
so  the  dividend  is  only  a  meagre  7  per  cent,  as  before.  After 
providing  for  that  ^217,500,  or  ;^;i7,ooo  more,  remains  to  be 
carried  forward.  Creditors  are  jf 68,000  up  at  ;f  191,000,  and 
debtors  ^f  170,000  at  .<f 653,000,  but  stocks  are  rather  smaller  at 
;^i, 164,000,  and  cash  is  nearly  ;^ioo,ooo  lower  at  ^f  141,000.  It 
is  all  very  nice,  but  that  goodwill  item  is  likely  to  be  some- 
thing of  a  bugbear  except  in  times  of  abounding  prosperity. 

UNITED  TOBACCO  COMPANIES,   LTD. 

In  the  year  to  September  30  the  nett  profits,  after  providing 
for  excess  duty  to  September,  1916,  amounted  to  ;f  205,860,^  an 
increase  of  ;^i2,5oo,  and  jf25,5oo  more  was  brought  in.  Con- 
sequently the  directors  have  no  difiiculty  in  repeating  the  divi- 
dend of  25  per  cent,  for  the  year,  and  the  carry  forward,  subject 
to  excess  duty,  is  ^38,000  higher  at  ;^  179,400.  Debts  owing  to 
associated  companies  are  ;f  70,000  down  at  ;f9i,ooo,  and  Trea- 
sury bills  are  ^44,000  lower  at  ;if  50,000,  but  /■24,ooo  more  War 
Loan  stock  is  held,  and  cash  is  up  ^f  26,000  at  / 109.470.  Like 
the  other  members  of  the  group  it  is  a  very  flourishing  concern, 
and  is  prospering  amazingly. 

BRENTFORD  GAS  CO. 

In  the  past  year  sales  of  gas  rose  ;if  177,000  to  ;^668,6oo,  and 
those  of  residuals  ^42,000  to  /■i9o,ooo,  gross  revenue  being 
^■225, 000  higher  at  /950.000.  On  the  other  hand,  costs  of  manu- 
facture increased  no  less  th.an  ;f  190,000  to  ^639,000,  and  alto- 
gether expenses  advanced  jf  226,000,  so  that  the  nett  revenue  of 
;f  105.475  is  a  little  smaller,  and  ;^6,ooo  less  was  brought  in. 
Consequently  tSe  dividend  on  the  A  stcr^k  is  reduced  from  jj 
per  cent,  per  annum  to  4 J  per  cent.,  and  that  on  the  B  stock 
from  5^  per  cent,  per  annum  to  4^  per  cent.  As  from  July  last 
the  price  of  gas  was  raised  from  2s.  lod.  to  3s.  4d.,  but  the 
sales  increaseid  by  12J  per  cent.,  and  the  number  of  consumers 
is  1.660  larger  at  121.080.  Like  several  other  gas  undertakings, 
the  company  is  seeking  powers  to  alter  the  incidence  of  the 
sliding  scale. 


.February  2,  1918. 


Zbc  Jnvestors'  TRcview. 


127 


I 


■ 


I 


I 
I 


COMPANY  MEETINGS. 

UNION    OF  LONDON  AND   SMITHS  BANK. 

The  annual  general  meeting  of  the  shareholders  of  this  bank 
was  held  at  the  Cannon  Street  Hotel,  London,  E.C.,  on  Wednes- 
day, January  30,  1918,  Sir  Felix  Schuster,  Bart,  (the  Governor), 
in  the  chair. 

The  Secretary  having  read  the  notice  convening  the  meet- 
ing the  report  was  taken  as  read. 

The  auditors'   certificate  was  then   read   by   the  secretary. 

The  Governor  :  I  have  now  to  announce  that  the  directors 
have  declared  a  final  dividend  for  the  year  at  the  rate  of  10 
per  cent,  per  annum,  subject  to  income-tax.  The  dividend  is 
payable  on  and  after  Thursday,  January  31. 

The  Governor  :  Ladies  and  Gentlemen, — Since  we  last  met 
we  have  to  deplore  the  loss  of  one  of  our  most  valued  colleagues, 
Mr.  Theodore  Bassett,  who,  after  prolonged  illness,  passed  away 
in  the  early  part  of  last  year.  In  him  the  bank  has  lost  a  direc- 
tor whose  great  ability  and  judgment  were  always  placed  most 
readily  at  its  disposal.  He  loved  the  work,  and  always  had 
the  interests  of  the  bank  at  heart,  and  he  was  held  in  high 
esteem  and  affection  by  his  co-directors  and  the  staff. 

To  the  great  regret  of  the  directors  Mr.  Henrv  W.  Prescott 
has,  owing  to  advancine  age,  resigned  his  seat  on  the  board 
after  60  years  of  active  life  in  the  city  as  a  partner,  and  subse 
>quently  a  director  of  Prescotts  Bank  and  of  our  bank  since 
the  amalgamation  with  Prescotts.  We  know  that,  although 
no  longer  a  director,  he  will  still  take  a  deep  interest  in  the 
affairs  of  the  bank  to  which  his  whole  life  has  been  devoted, 
but  we  shall  miss  his  wise  counsel  and  assistance. 

The  board  have  elected  as  a  director  Lord  Southborough, 
perhaps  better  known  bv  his  old  name  of  Sir  Francis  Hop- 
wood,  a  most  distinguished  public  servant,  who  has  given  his 
services  to  the  State  in  many  capacities  and  different  spheres 
of  activity,  and  especially  at  the  Board  of  Trade,  and  whose 
wide  experience  and  knowledge  of  affairs  will,  I  am  sure, 
■be  of  great  assistance  to  us. 

Our  report  has  been  in  your  hands  for  some  days,  and  you 
will  agree  that  it  shows  considerable  expansion  and  the  same 
strength  as  regards  cash  resources  that  we  have  always  shown, 
and  which,  in  view  of  future  developments,  it  is  more  than 
ever  essential  to  maintain.  Our  figures,  like  those  of  other 
banks,  show  large  increases  in  current  and  deposit  accounts, 
owing  to  prevailing  conditions,  to  hu°e  Government  expendi- 
ture, and,  according  to  some  experts,  to  what  is  called  inflation 
of  credit.  I  will  not  here  enter  upon  this  debateable  ground,  for 
this  is  a  very  intricate  and  complicated  economic  question,  but 
■can  only  record  the  facts  and  draw  certain  conclusions  from 
them. 

Large  Government  borrowings  and  expenditure,  the  expan- 
sion of  the  circulating  medium  through  the  increasing  issues  of 
currency  notes,  and  practical  Government  control  over  nearly 
all  the  staple  ind"stries  of  the  country  must  nat'ir:illy  affect 
the  whole  economic  position,  and  what  we  bankers  have  to 
<;onsider  is  what  the  situation  will  be  when,  sooner  or  later — 
we  hope  it  may  be  sooner — these  conditions  alter  and  we  revert 
to  a  normal  state  of  affairs.  It  seems  inevitable  that  the 
deposits  in  the  banks  will  then  be  drawn  upon,  while  large 
demands  for  reconstruction  work  and  trade  requirements  all 
over  the  world  must  certainly  make  themselves  felt.  Banks  must 
be  prep.ired  for  this  and  keep  themselves  strong  and  ready  for 
the  calls  that  must  arise  if  our  world-wide  commerce  is  to  be 
restored  to  its  pre-eminent  position. 

As  to  the  trade  of  the  country  generallv,  speaking  broadly, 
our  reports  point  to  continued  activity  in  all  branches,  and 
especially  those  which  assi.st  directly  or  indirfctlv  in  the  prose- 
cution of  the  war.  Industry  has  been  primarily  oreanis»d  with 
the  view  of  producing  the  best  results  for  this  purpose. 
Naturally  there  has  been  an  incrense  of  Government  control  in 
many  important  trades.  While  this  may  inevitably  have  led 
to  a  certain  degree  of  hardship  and  complaint,  nevertheless  the 
results  achieved  have  been,  to  all  appearances,  th.it  a  sub- 
stantial diminution  in  the  cost  of  production,  and  consequently 
an  immense  saving  to  the  country,  have  been  attained.  Cer- 
tainly the  war  has  shown  tha  adaptability  of  the  leaders  of 
industry  in  the  country,  and  this  adaptability  and  readiness  to 
adopt  new  methods  will  be  a  great  asset  in  the  new  commercial 
and  industrial  tasks  that  will  have  to  be  faced  when  the  war 
comes  to  an  end. 

Unfortunately,  but  perhaps  not  unnaturally,  there  have  been 
labour  troubles,  not  arising,  as  was  formerly  tlie  case,  either 
from  insufficient  pay  or  unduly  long  hours,  but  mainly  from 
the  nbsence  of  large  numbers  of  men  who  are  serving  their 
country  amidst  dangers  and  hardships  whjth  their  brothers  at 
home  should  remember.  Wages  in  most  industries  have  risen  in 
greater  proportion  than  the  actual  cost  of  living,  and  this  rise 
in  the  cost  of  production  naturally  ag.iin  increases  the  cost  of 
the  necessaries  of  life.  Swmer  or  later  there  must  be  a  reaction 
and  then  will  arrive  a  period  for  the  exercise  of  prudence  and 
wise  statesmanship  in  the  relations  between  labour  and  its  em- 
ployers. If  only  the  leaders  of  labour  would  keco  before  them 
as  one  of  their  aims  that  of  efficiency,  as  the  leaders  of  industry 
have  done,  then  many  difficulties  would  be  overcome.  In  the 
great  industrial  development  that  is  before  us.  capital  and 
labour  must  not  contend  as  antagonists,  but  strive  as  partners 
and  fellow-workers  in  one  common  cause.  Much  h.ns  been 
accomplished  already  in  the  field  of  industry,  and  quite  apart 
from  the  production  of  war  material,  other  industries,  particu- 
larly shiobuilding,  have  shown  remarkable  activity  and  pro- 
gress.    The    Board   of    Trade    returns    show    very    remarkable 


figures,  the  imports  being  ;;^i,o65,ooo,ooo  and  the  exports  close 
upon  _^t)oo,ooo,ooo.  'I  his  shows  an  excess  of  imports  of 
j/ 470,000,000,  as  against  ;^345,ooo,ooo  in  1916  and  ^^368,000,000 
in  J915,  whereas  before  the  war  the  balance  was  about 
^'140,000,000.  The  figures  for  1917,  however,  it  should  be 
remembered,  include  certain  Government  imports  not  included 
in  previous  returns,  and  such  imports  comprise  expenditure  in- 
curred on  behalf  ot  our  Allies,  so  that  the  adverse  balance  may 
not  be  quite  so  heavy  as  the  figures  would  show.  I  think  it 
can  be  asserted  on  good  authority  that  the  position  of  our  trade 
with  neutral  countries  is  more  satisfactory  than  could  have 
been  supposed,  and  that  our  imports  from  those  countries  are 
balanced  by  our  exports,  if  in  the  latter  be  included  the  in- 
visible exports,  such  as  shipping  charges.  But  taking  these 
enormous  figures,  it  is  clear  what  a  strain  there  must  have  been 
on  the  foreign  exchanges,  and  while  artificial  measures  cannot 
possibly  counteract  the  natural  movements  of  trade,  and  while 
the  normal  conditions  of  the  international  money  markets  are 
suspended,  yet  the  conditions  of  our  own  Money  Market  still 
retain  an  important  effect  on  the  foreign  exchanges  which  must 
not  be  left  out  of  sight  when  the  policy  affecting  monetary 
conditions  at  home  is  considered. 

I  have  spoken  of  the  industrial  development  throughout  the 
country,  and  it  must  not  be  overlooked  that  agriculture  has 
been  equally  prosperous  on  the  whole.  More  land  has  been 
brought  under  cultivation,  and  an  appreciable  addition  to  the 
food  supply  has  been  obtained,  but,  as  in  other  industries,  the 
cost  of  the  necessary  raw  materials,  such  as  fertilisers  and  food- 
stuffs, has  become  a  serious  factor,  and  will,  I  trust,  not  bo 
overlooked  by  the  authorities,  but  in  agriculture,  as  in  other 
industries,  greater  co-operation  amongst  all  those  engaged 
in  it  would  seem  desirable,  and  might  lead  to  a  higher  rate  of 
production,  while  at  present  there  seems  also  to  be  a  certain 
lack  of  economy  in  the  methods  of  distribution.  The  Government 
has  asked  bankers,  and  the  bankers  have  most  willingly  agreed, 
to  lend  financial  assistance  to  farmers,  but,  as  far  as  my  ex- 
perience goes,  this  has  not  been  availed  of  to  any  large  extent ; 
on  the  contrary,  many  farmers  who  used  Jo  be  borrowers  from 
the  banks  have  become  depositors.  Those  in  control  of  indus- 
trial and  commercial  undertakings  are  looking  ahead  and 
making  preparations  for  future  conditions.  They  have  had  to 
reconstruct,  extend,  and  revise  many  of  their  methods,  and 
have  obtained  results  that  are  full  of  promise.  Moreover, 
vigilant  and  far-seeing  concerns  with  common  interests  have 
combined  or  entered  into  working  relations,  minimising  the  cost 
of  production,  and  thus  they  are  doing  their  share  im  maintain- 
ing and  improving  the  country's  position  in  the  markets  of  the 
world.  Such  developments  are  essential,  and  banks  also  must 
prepare  for  the  future,  and,  as  I  have  already  observed,  be 
ready  to  do  their  share  in  assisting  the  great  movements  which 
we  m.iy  anticipate. 

This  brings  me  to  a  point,  probably  the  most  important,  in 
our  report;  I  mean  the  arrangement  which  we  have  concluded 
for  the  amalgamation  of  this  bank  with  the  National  Provincial 
Bank  of  England.  Extr.iordinary  meetings  to  consider  this 
agreement  will  very  soon  be  called — I  hope  in  the  course  of  a 
week  or  two — and  to-day  my  remarks  on  this  subject  will  only 
be  quite  brief.  In  coming  to  the  conclusion  that  such  an 
amalgamation  was  desirable,  we  have  not  been  actuated  by  a 
desire  to  present  big  figures,  and  for  that  purpose  alone  to  enter 
into  rivalry  with  institutions  that  are  more  extended  than  ours. 
We  are  by  no  means  a  small  b^nk,  and  we  are  quite  able  to 
hold  our  own.  At  the  same  time,  there  is  no  doubt  th.it,  in 
order  to  be  in  the  best  position  not  only  to  do  well  for  our  share- 
holders, but  to  give  our  customers  the  greatest  facilities,  it  is 
highly  important  to  be  represented  in  the  great  industrial  centres 
all  over  the  country.  When,  therefore,  the  opportunity  occurred 
for  this  amalgam-ition.  we  felt  thnt  the  step  was  one  which,  in 
the  interests  of  all  parties,  we  should  recommend  for  the  .approval 
of  our  shareholders.  I  need  not  say  anything  ps  to  the  position 
of  the  National  Provincial  Bank,  which  since  its  estnbl''shmpnt 
81;  years  ago  his  taken  a  leading  part,  and  was  one  of  the 
pioneers  in  the  development  of  banking  throuehout  the  country, 
and  which  has  deposits  totalling  ne.-irly  twice  the  amount  of 
ours.  In  associating  ourselves  with  them,  we  shall  secure 
representation  in  the  great  centres  of  industry  and  commer.ce 
"•here  we  are  not  at  present  directly  represented,  while  we  be- 
lieve thit  we  can  bring  corresponding  advantages  to  the 
National  Provir»cial  in  London  and  important  sections  of  the 
country.  Indeed,  the  two  banks  complement  one  another,  for 
with  a  combined  total  of  nearly  700  oflices,  we  meet  outside 
London  in  only  about  15  places,  and  in  the  London  area  there 
's  hardly  my  overlapping.  The  subscribed  capita!  of  the  com- 
bined brink  will  be  over  28  millions,  the  oaid-uo  capital 
/c;,476.ooo,  the  reserve  fund  in  the  neiehbourhood  of  /'4,ooo,ooo, 
not  less,  and  the  total  deposits  as  on  December  31  last  over  171; 
millions.  Our  shareholders  will  thus  have  the  opportunity  of 
becoming  partners  in  one  of  the  largest,  and,  I  venture  to  sav, 
stroncest,  institutions  not  only  in  this  country,  but  in  the  world. 
and  the  step  is  one  which  we  shill  be  able  cordially  to  reconi^iend 
to  the  acceptance  of  our  proprietors. 

Our  own  figures  need  very  little  comment.  Current  and  de- 
posit accounts  show  an  increase  of  more  than  vi  millions  over 
the  figures  of  last  year,  and  amount  to  ;f  62.800. 000 :  cash  in 
hand  and  at  Bank  of  Eneland.  ni  millions,  is  slightly  less  than 
last  year,  but  money  at  call  and  short  notice  h^s  increased  by 
over  4  millions,  and  amounts  to  /14. 300.000,  so  thit  the  two  cash 
items  toffethor  are  no  less  than  44i  Per  cent,  of  our  li-bilities  on 
current  and  deposit  accounts  Investments  show  a  decrease  of 
/ooo,ooo.  and  amount  to  /l^e,  millions;  our  bills  discounted 
have     increased     by     ;^2, 200,000,     and     stand     at     over     /," 


lis 


Ube  Jnvestocs'  TRevtevv. 


February  2,  191& 


millions ;  loans  and  advances,  £i&i  iniUions,  have  in- 
creased by  ;^3,2oo,ooo,  which  increase  is  mainly  due  to 
the  facilities  granted  to  our  customers  for  the  purpose  of  sub- 
scribing to  the  War  Loan.  The  only  item  which  shows  an  im 
portant  decrease  is  acceptances  and  guarantees,  standing  at 
;^i, 750,000,  against  ^^3, 500,000,  a  decrease  mainly  owing  to 
the  reduction  of  certain  liabilities  on  behalf  of  our  own  Govern- 
ment. It  has  not  been  our  policy  during  the  war  to  encourage 
acceptance  business  to  too  large  an  extent,  and  particualrly 
have  we  avoided  anything  in  the  nature  of  finance  paper.  The 
gross  profit  has  increased  by  ;^303,ooo,  which  increase,  however, 
has  been  absorbed  by  the  greater  amount  of  interest  allowed  to 
our  customers,  amounting  to  no  less  than  ;f  1,340, 000,  an  in- 
crease over  last  year  of  ^^323,000,  and  by  the  growth  of  charges. 
We  have  not  .set  out  in  a  separate  item,  as  some  banks  have 
done,  the  amount  of  bonus  allowed  to  our  .staff — all  that  is  in- 
cludfcd  in  the  charges — but  I  may  mention  that  the  bonus 
amounted  to  about  ^^,47,000  in  respect  of  the  permanent  and  tem- 
porary staff  still  at  work  at  home,  while  we  continue  to  main- 
tain the  payments  to  those  engaged  with  the  fighting  forces  at 
the  same  figures  as  if  they  were  at  work  in  the  bank.  A  contri- 
bution to  the  bank's  widows'  and  orphans'  fund  has  also  been 
made.  Our  total  number  on  military  service  is  907,  of  whom 
203  are  holding  commissions.  I  regret  to  say  that  go  have 
either  been  killed  in  action  or  have  died  of  wounds  or  sick- 
ness, no  others  have  been  wounded,  seven  are  reported  mi.ssing, 
and  eight  are  prisoners  of  war.  I  need  hardl}'  say  that  our 
deepest  sympathy  goes  out  to  their  families  The  military 
honours  gained  are:  D.S.O.,  i;  Military  Cross,  11;  bar  to 
Military  Cross,  2;  and  Military  Medal,  5.  Of  our  me.ssengers 
who  have  joined  the  forces,  43  are  still  on  service,  two  have 
been  discharged,  and  I  am  sorry  to  say  six  have  been  killed. 
One  Distinguished  Conduct  Medal  has  been  gained.  Of  our 
directors  and  local  dire-tors,  11  are  still  engaged  with  his 
Majesty's  forces.  After  this  digression,  I  return  to  our  profit 
and  loss  account,  and  have  only  to  mention  the  nott  profit,  which 
amounts  to  ;^593,ooo,  a  slight  decrease  on  our  figures  of  last 
year,  owing  to  the  above-mentioned  causes,  but  whereas  last  year 
we  had  to  provide  ;f40o,ooo  for  depreciation  of  securities,  this 
year  we  set  aside  for  contingencies,  which  may  possibly  occur, 
although  we  hope  they  will  not,  ^^200,000.  After  payment  of  a 
dividend  at  the  same  rate  as  last  year,  we  carry  forward 
^^209, 000,  an  increase  over  the  figure  of  last  year  of  ;f  127,000. 

In  referring  to  the  even^ts  of  last  year  I  have  not  yet  alluded 
to  Govemiment  finance,  a  suibject  which  is  really  too  vast  to 
enter  upon  on  an  occ;ision  like  this.  The  figures  dealt  with 
are  on  such  a  gigantic  scale  that  they  would  scarcely  have  been 
conceivable  to  any  of  us  'before  the  war.  The  Budget  intro- 
duced in  May  last  gave  the  actual  expenditure  of  one  year  at 
2,200  millions  and  a  revenue  of  573  millions.  Of  the  total 
national  expenditure  during  the  war,  no  less  than  1,137  "i''" 
lions,  or  fully  26  per  cent.,  had  been  provided  out  of  revenue. 
This  is  a  very  important  point  which  struck  me  when  I  went 
over  the  figures.  It  is  important  to  bear  in  mind  when  some- 
times we  look  forward  with  anxiety  to  the  huge  accumulation 
of  debt,  how  is  the  interesit  to  be  met?  Well,  we  have  paid 
26  per  cent,  out  of  revenue,  and  provided  this  large  amount 
of  1,137  millions  during  the  war.  I  think  that  may  be  a  com- 
fort to  us  in  looking  at  the  finance  of  the  future.  The  esti- 
mated expenditure  for  the  present  financial  year  came  to  2,290 
millions,  the  total  'estimated  revenue  to  638  millions,  leaving 
a  balance  to  be  provided  by  loans  of  1,650  millions.  By  De- 
cember 31  the  estimated  increase  in  revenue  for  the  whole 
year  had  already  been  exceeded^  by  42  millions.  F.xpenditure, 
of  course,  has  also  greatly  exceeded  the  estimate.  During  the 
year  1917,  the  amount  of  new  money  obtained  by  means  of 
the  War  Loan  is.suod  in  January  was  947  millions,  the  total 
of  this  loan,  including  conversion  amounts,  being  about  2,100 
millions.  Exchequer  bonds  produced  ^^82,000,000,  War  Savings 
certificates  ^^63, 000, 000,  other  debt,  which  includes  loans  raised 
'abroad,  but  from  which  allowance  will  have  to  be  made  for 
our  advaices  to  Allies,  amounted  to  650  millions,  and  National 
War  Bonds  to  207  millions,  while  the  amount  of  Treasury  bills 
paid  off  on  balance  was  57  millions.  Thus  it  can  be  main- 
tained that  not  only  did  the  War  Loan  attain  a  far  greater 
success  than  the  most  optimistic  forecasts  anticipated,  but 
the  financial  policy  in  its  endeavour  to  reduce  floating  debt 
and  replace  it  by  more  permanent  forms  of  loans,  is  one  that 
has  already  been  successful  to  a  certain  degree,  and  should  be 
further  extended.  I  think  it  is  in  the  hands  of  the  public  at 
large  to  support  the  Government's  financial  policy  to  their 
utmost,  and  if  they  do  so  the  issue  of  another  huge  loan,  with 
all  its  attendant  disadvantages  and  dislocation  of  the  money 
market,  wiU  be  quite  unnecessary.  The  present  method  of 
continuous  borrowing  entails  the  least  disturbance  of  the  money 
market,  and  is,  I  am  glad  to  think — out  figures  in  the  bank 
-show  it — highly  successful.  The  aipplications  for  War  Bonds 
have  been  on  an  increasing  scale  during  the  last  few  weeks, 
the  subscriptions  reaching  25  to  30  millions  a  week,  and  if 
this  rate  can  be  maintained  or  increased,  borrowing  by  any 
other  method  would  not  be  required.  The  Government  have 
indeed  placed  at  the  disposal  of  the  public  a  security  which 
appeals  to  every  class  of  investor,  both  small  and  large  ;  to 
him  who  wants  a  .short  investment,  to  him  who  wants  a  long 
one,  together  with  the  opportunity  of  converting  into  the  old 
War  Loan  and  an  option  to  secure  any  new  loan  that  may  be 
issued,  leaving  him  the  choice  also  of  a  security  subject  to 
inoome-tax  or  one  on  which  the  tax  has  been  compounded.  In- 
deed, the  merits  of  the  issue,  which  have  been  very  carefully 
thought  out,  seem  only  now  to  have  been  recognised  in  wider 
circles,  and  what  is  most  satisfactory  is  the  greater  interest 
which  smaller  investors  are  taking  in   our  Government  issues. 


Through  the  courtesy  of  the  Chairman  of  the  War  Saving? 
Committee  I  have  been  able  to  obtain  certain  figures  which 
show  the  cash  contributions  of  the  small  investor,  and  I 
should  like  to  say  that  the  work  undertaken  and  successfully 
carried  out  by  the  National  War  Savings  Committee  cannot  be 
sufficiently  commended,  and  is,  in  my  opinion,  hardly  yet 
recognised.  There  are  now  1,640  committees  in  England  ami 
Wales,  and  the  number  of  affiliated  associations  throughout 
I'^ngland  and  Wales  is  38,400,  and  there  are  about  4,000  mor<- 
in  Scothand.  The  total  number  of  War  Savings  Certificate* 
sold  to  January  20  was  144,600,000 — this  is  the  number  of 
certificates  and  not  the  sterling  equivalent.  The  membership 
of  the  War  Savings  associations  is  over  four  millions,  who 
arc  contributing  weekly  to  the  national  exchequer  small  sums 
of  6d.  and  upwards.  There  are  11,540  associations  in  schools 
throughout  the  country,  and  in  many  of  these  the  contribu- 
tions are  accepted  in  pence.  The  movement  must  have  a 
most  important  influence,  and  is  bound  to  have  a  considerable 
effect  on  the  habits  of  the  coming  generation.  In  estimating 
th<;  value  of  the  sums  collected  from  the  small  investor  the 
public  should  recognise  that  this  is  mostly  money  which,  if 
not  saved  in  this  way,  would  have  been  spent  on  the  very 
articks  of  which  there  is  a  shortage  at  the  present  time,  and 
is  therefore  a  much  more  valuable  saving  than  the  amount 
would  signify.  A  good  many  local  authorities  bear  a  great 
portion  of  the  expenses  of  their  local  committees,  and  justify 
their  action  by  the  argument  that  the  promotion  of  habits  of 
thrift  will  diminish  pauperism  in  their  district  and  thereby 
relieve  the  rates.  While  this  saving  has  been  going  on  there 
has  been  no  decrease  in  Post  Office  Savings  Bank  deposits, 
which  at  the  beginning  of  the  war  were  1^  millions,  while 
now  they  are  203,  millions,  and  the  Trustee  Savings  Bank  de- 
]>osits  hnvv  only  decreased  by  a.bout  2J  millions.  The  total 
subscribed  in  ^'^oo  War  Savings  Certificates  sold  is  24!  mil- 
lions, bringing  the  aggregate  received  for  War  Savings  Certifi- 
cates up  to  105J  millions.  The  iimount  invested  in  Govem- 
inent  .securities  through  the  Trustee  Savings  Banks  is  15  mil- 
lions. The  total  investments  of  the  small  investor  in  Govern- 
ment securities  are  estima/ted  to  have  been  258  millions  up  to 
the  end  of  last  year.  Only  those  who  have  any  experience  of 
what  it  means  to  collect  s,nch  amounts  in  small  sums  can  really 
appreciate  the  magnitude  of  the  effort  that  ha's  been  put  forth 
in  this  direction,  and  I  do  not  think  the  public  can  do  better 
than  read  the  pamphlet  issued  by  the  National  War  Savings 
Committee  and  give  the  committee  most  cordial  support,  for 
not  only  docs  this  work  assist  in  carrying  on  the  war,  but  the 
educational  service  in  promoting  habits  of  thrift  and  teaching 
the  public  their  benefit  must  be  of  incalculable  value  in  the 
future. 

If  ihe  small  investor  has  thus  come  forward,  he  is  giving 
evidence  of  his  saving  power  and  confidence  in  the  future  of 
the  country ;  those  whose  income  is  on  a  larger  scale  have  an 
even  more  imperative  duty  to  do  all  they  can  so  that  financial 
considerations  shall  not  interfere  with  the  succesrful  prosecu- 
tion of  the  war,  and  they  can  do  so  only  by  investing  to  the 
largest  pos.sible  degree,  but,  and  more  especially,  by  reducing 
expenditure  to  the  lowest  possible  limits. 

While  War  Bonds  are,  as  I  have  tried  to  show,  offering  an 
attractive  form  of  investment,  and  should  appeal  to  everyone, 
other  methods  have  been  advocated,  and  particularly  that  of 
borrowing  on  premium  bonds— a  not  vtry  clearly  defined  ex- ' 
pression,  and  opinions  seem  to  vary  as  to  what  it  actually 
means.  The  Parliamentary  Committee  appointed  fot  the  pur- 
pose of  considering  this  form  of  borrowing  did  not  recommend 
it,  and  perhaps  it  may  be  of  interest  to  give  vou  the  best 
American  opinion  on  the  .subject,  obtained  from  one  who  is 
now  on  the  spot,  and  in  the  best  position  to  judge.  They 
consider  in  financial  circles  in  the  United  States  that  such  a 
form  of  borrowing  would  be  regarded  as  a  weakening  of  public 
morale  in  this  country  and  a  failure  of  the  appeal  to  patriot- 
ism ;  that  such  bonds  are  usually  a,ssoci.ited  with  countries 
whose  credit  does  not  rank  very  high  ;  that  such  borrowing 
would  be  regarded  like  a  drug  which  is  difficult  to  recede  from. 
so  that  any  good  results  likely  to  be  obtained  would  be  more 
than  outweighed  by  the  greater  harm  to  morale  and  ^redit. 

In  certain  quarters  there  has  been  a  call  for  what  is  styled 
conscription  of  wealth  or  levy  on  Capital.  How  this  is  to- 
operate  or  to  be  carried  into  effect  has  never  been  clearly  de- 
fined, and  let  it  be  remembered  that  the  contributions  of  in- 
vested capital  to  the  revenue  of  the  country  by  way  of  income- 
tax,  super-tax,  and  death  duties  are  already  on  a  very  consider- 
able scale.  But  were  it  true  that  Capital  i,i  only  a  helpmate 
to  the  idle  rich  to  spend  their  lives  in  ease  and  luxury,  then,  I 
should  say,  by  all  means  let  Capital  go.  But  all  workers  must 
tvuow  that  Capital  is  essential  for  the  carrying  on  of  all  our 
industries,  for  calling  into  life  new  enterprise,  for  finding 
employment  and  providing  better  conditions  and  a  higher  stan- 
dard of  living  to  millions  of  our  population.  No  doubt  it  has 
its  duti<  s,  too,  which  are  becoming  more  and  more  recognised  ; 
but  th?  working  classes  themselves  must  know  that  in  their  own 
interests  Capital  mu.st  not  be  either  curtailed  or  driven  out  of 
the  countrv.  but  rather  attracted  to  it.  Apart,  however,  from 
mere  questions  of  self-interest,  I  cannot  for  a  moment  believe 
that  any  repudiation  of  obligations  once  incurred,  or  inter- 
ference with  public  or  private  ciedit,  could  possibly  commend 
themselves  to  the  people  who  went  to  war  for  a  "  scrap  of 
jiaper." 

These  remarks  were  put  down  before  the  debate  in  the  Honse 
last  night.  I  do  not  know  that  that  debate  adds  very  much  to 
our  knowledge.  We  are  told  that  it  is  a  purely  ncaiemic  aues- 
tion.  If  so,  I  think  it  is  a  pity  it  has  be«-n  raised,  because 
discussions  of  purely   academic   questions  at   such  a  time  can- 


February  2,  igi8. 


XTbe  Jnvestore'  TRevlew. 


129 


n 


do  no  possible  good,  and  they  certainly  give  rise  to  a  great 
feeling  of  insecurity  all  over  the  country  What  is'  in  the  mind 
of  the  Chancellor  of  the  Exchequer  is  quite  a  different  thing,  it 

I  appears  to  me,  from  what  certain  advocates  of  that  policy  have 
in  their  minds,  and  I  think  that  should  be  clearly  stated  and 
recognised.  As  I  said.  Capital  contributes  already  very  largely. 
Death  duties  are  a  levy  on  Capital— a  very  heavy  one,  and  one 
which  at  some  time  may  have  quite  serious  influences. 
Mr.  John  Hedges  :  We  cannot  do  without  capital,  sir. 
The  Governor  :  No.  I  did  not  want  to  give  you  too  many 
figures,  but  1  have  had  a  return  before  me  which  is  very  in- 
teresting. It  shows  in  all  cases  a  decrease  in  the  number  of 
I^m  super-tax  payers  in  each  class  in  which  they  are  graduated. 
^H  One  form  of  Government  indebtedness  shows  an  increase 
^"  -wfiich  I  admit  gives  m.e  some  concern,  and  the  cause  of  which 
i  do  not  quite  understand.  I  allude  to  the  currency  notes, 
which  now  amount  to  j^2i2,5oo,0(X).  I  cannot  think  how  there 
can  be  such  demand  for  this  large  volume  of  small  currency, 
and  this  is  certainly  a  form  of  inflation  which  ought  to  be 
very  carefully  watched,  and  should  be  reduced  at  the  earliest 
moment. 

There  is  a  critical  period  before  us,  not  only  as  regards  the 
conduct  of  the  war  itself  during  the  next  few  months,  but  also 
as  regards  the  financial  and  economic  questions  that  will  have 
to  be  solved  when  the  war  comes  to  an  end.  We  shall  have 
to  face  both  witli  endurance  and  fort'tude.  Taxation  must 
necessarily  be  high,  and  remain  so  for  many  years.  It  will 
test  the  powers  of  statesmanship  and  foresight  to  the  utmost  to 
devise  the  best  means  for  raising  taxation  so  as  to  produce  the 
largest  revenue  and  interfere  as  little  as  possible  with  the  in- 
dustrial development  of  the  country.  Ihe  country  will  have 
to  produce  more  and  to  buy  less,  and  taxation  should,  in  my 
•  pinion,  not  be  based  only  upon  income,  but  especially  upon 
expenditure,  and  particularly  in  respect  of  expenditure  upon 
luxuries.  Every  one  of  us  will  be  poorer,  with  very  iew  excep- 
tions. Every  one  of  us  will  have  to  woik  harder  than  ever 
before,  to  spend  less,  to  save  more,  and  every  effort  must  be 
made  for  increased  output  of  individual  effort  and  national 
production.  If  such  efforts  be  made  and  sustained,  I  feel  that 
we  can  face   tho  future  with  hope   and   confidence. 

I  now  beg  to  move  that  the  Report  and  Accounts  be  adopted. 
Mr.   Lindsay   Eric  Smith  (Deputy-Governor|  having  seconded 

■the  resolution,  it  was  put  and  carried  unanimously. 
Mr.  Deputy  Millar  Wilkinson  :  I  wish  to  express  the  great 
delight  which  I — in  common,  I  am  sure,  with  every  share- 
holder— have  experienced  in  listening  to  the  very  clear  and 
erudite  financial  dissertation  which  we  always  get  from  Sir 
Felix  Schuster.  I  am  quite  sure  that  those  who  are  present,  and 
those  who  are  absent,  will  be  very  glad  to  hear  or  to  read  his 
remarks  upon  the  conscription  of  capital,  after  the  very  am- 
biguous remarks  which  were  made  by  Mr.  Bouar  Law  yester- 
day, which  certainly  left  a  kind  of  doubt  in  the  minds  of  a 
good  many  people.  I  think  that  that  doubt  has  been  to  a  great 
extent  smoothed  away,  and  you  have  rather  calmed  our  minds. 
There  is  another  very  important  subject,  sir,  which,  as  I  am 
so  proud  of  your  speeches  always,  I  rather  regret  that  you  have 
not  mentioned.  Either  you  have  forgotten  to  do  so  inadver- 
^^  tently,  or  you  have  omitted  by  design  to  mention  it.  That  is 
^^L'the  question  of  the  controversy  which  is  going  on  at  the  pre.sent 
^fkime  to  a  certain  extent  with  regard  to  the  repeal  of  the  Bank 
Act.  I  have  heard  several  people  high  in  finance  make  the 
statement  that  the  old  1844  Act  of  Sir  Robert  Peel  has  not  been 
conducive  to  free  action  in  the  banking  world.  Vou,  sir,  a'^ 
a  high  exponent  of  bank  finance,  might  perhaps  be  able  to  tell 
us  if  you  have  found  in  your  experience  that  it  has  ever  been 
a  means  of  preventing  the  advance  of  banking  facilities.  I 
wish  again  to  express  my  great  thanks  to  you  for  your  very 
clever  speech,    which  we   have    all  enjoyed   very  much. 

Mr.  John  Hedges  :  Mr.  Chairman,  I  should  like  to  express 
agreement  with  the  list  speaker,  and  to  suggest  that  your  re- 
marks should  be  distributed  among  the  shareholders,  not  only 
for  them  to  read  themselves,  but  to  give  to  their  neighbours. 
I  think  your  remarks  will  do  good,  because,  after  all,  it  is 
nonsense  to  talk  about  conscripting  capital.  The  country  could 
lOt  exist  without  it,  and  it  is  impossible  for  workers  to  work 
nless  there  is  capital  to  draw  upon.  You  have  an  instance  in 
"Russia,  where  I  remember  the  workmen  took  over  one  large 
works.  When,  however,  it  came  to  the  end  of  the  week,  they 
had  no  money,  so  they  invited  all  the  managers  and  proprietors 
to  come  back  again.  It  is  nonsense  to  talk  about  capital  con- 
scription. It  is  already  conscripted.  We  are  all  of  us  paying 
our  different  taxes  and  our  dues,  whatever  they  are,  towards 
the  State.     We  are  not  all  young  enough  to  go  and  fight,  but, 

^1!  ^"^  J^*^'  ^^  *^^"  ^'^''  ^'  '^"'"^  ^"'^  ^^'P  *°  contribute  to 
those  who  do.  I  think  your  remarks  are  worthy  of  being  dis- 
tributed. I  thank  you  very  much  for  the  remarks  you  have 
'u^  u^"^-  *--*'*''"'^"-  I  do  not  know  whether  we  may  assume 
that  this  IS  the  last  annual  meeting  of  the  bank,  but  I  am  sure 
you  will  all  agree  with  me  that  we  ought  to  thank  Sir  Felix 
Schuster  for  the  manner  in  which  he  has  conducted  this  bank 
for  so  many  years  past.  I  and  my  family  have  been  subscribers 
to   and  customers  of  this  bank   for   70   vears,  and   I  have  been 

I  a  shareholder  for  a  great  many  years.'  I  have  attended  most 
of  the  meetings,  and  have  always  made  it  my  business  to  do 
so,  because  of  the  great  interest  that  Sir  Felix  has  taken  in  the 
working  of  the  bank.  I  should,  therefore,  like  to  express  the 
nope  in  which  I  am  sure  vou  will  all  join,  that  the  directors 
of  the  new  concern  will  utilise  his  valuable  services,  the  same 
as  we  have  been  privileged  to  do.  I  do  not  know  whether  this 
IS  the  last  annual  meeting  at  which  we  shall  see  him  as  chair- 


man, but  I  wish  him  ton  voyage  for  the  future,  and  I  hope 
that  he  will  be  received  on  the  new  board  with  all  the  acclama- 
tion which  the  shareholders  have  given  to  him  here. 

The  Governor  :  Are  there  any  other  observations  on  the  re- 
port? I  am  afraid  my  own  remarks  have  taken  rather  longer 
than  I  expected,  and,  in  response  to  the  tempting  invitation 
which  Mr.  Deputy  Millar  Wilkinson  has  extended  to  me  to 
enter  on  the  question  of  the  Peel  Act  of  1844,  I  may  say  that 
I  am  afraid  that  there  is  no  time  to  do  so  at  length.  I  should 
like,  however,  to  make  this  observation,  as  he  has  asked  me 
a  straight  question  as  to  what  my  views  are,  that  I  gave 
expression  to  those  views  at  a  meeting  of  this  bank  which  took 
place,  I  think,  in  January,  1901.  At  that  time  I  expressed  the 
view  that  Peel's  Act  had  worked  extremely  well  for  a  number 
of  years,  but  that  the  conditions  of  the  times  had  changed  so 
much  that  the  period  had  arrived  for  a  careful  revision  of 
that  Act.  That  was  the  view  I  expressed  to  you,  gentlemen, 
in  1901,  and  those  views  I  still  hold.  Of  course,  we  have  all 
read  the  remarkable  speech  which  was  delivered  on  the  subject 
yesterday,  but  I  have  not  had  time  to  go'  into  full  particulars 
of  what  is  there  advocated.  I  have  not  referred  to  the  subject 
in  my  speech,  because,  personally,  I  think  we  ought  to  get  on 
with  the  war,  and  give  our  minds  fully  to  what  can  be  done 
during  the  war.  That  is  why  I  insisted  rather  on  the  question 
of  war  saving.  I  think  everybody  can  do  something.  This 
question  of  the  Bank  Act,  however,  is  most  important,  and  I 
quite  agree  that  it  should  be  very  carefully  considered.  As  to 
interference  with  joint-stock  banking,  I  do  not  think  it  is  for 
us  to  express  any  disapproval  of  the  Bank  Act  of  1844,  because 
it  has  brought  joint-stock  banking  into  prominence.  It  enabled 
the  joint-stock  banks  to  do  for  the  country  what  the  Peel  Act 
prevented  the  Bank  of  England  from  doing,  and  it  provided 
the  country  with  currency  which  that  rigid  Act  really  did  not 
provide.  I  have  read  the  reports  of  the  Debates  in  Parliament 
on  that  Act  very  carefully  several  times.  Deposit  banking  was 
only  onoe  mentioned  during  the  whole  debate  in  the  House  of 
Commons  which  took  place  on  the  Act  of  1S44.  It  was  practi- 
cally not  in  existence,  and  Sir  Robert  Peel  said  it  was  of  no 
importance.  He  only  thought  of  gold,  and  the  only  function 
of  banks  was  supposed  to  be  the  issue  of  notes,  which  that  Act 
legislated  for.  But  deposit  banking  has  grown  in  consequence 
to  a  large  extent,  and  supplied  the  country  with  that  currency 
which  otherwise  would  have  been  provided  by  notes.  In  the 
interests, of  the  country  generally,  of  the  gold  question,  and  of 
the  Bank  of  England  as  a  central  institution,  not  only  in  this 
country,  but  in  the  whole  world,  I  am  quite  convinced  that  the 
time  has  come  when  the  question  will  have  to  be  very  carefully 
considered  and  taken  in  hand.  There  I  agree  with  Sir  Edward  Hol- 
den.  I  am  much  obliged  to  Mr.  Hedges  for  the  remarks  which 
he  has  made  about  the  future  constitution  of  the  new  bank — 
the  National  Provincial  and  Union  Bank  of  England.  It  will 
be  my  privilege  to  say  a  few  words  when  the  next  meeting  is 
called,  but,  as  Mr.  Hedges  has  been  kind  enough  to  allude  to 
my  services,  I  can  only  say  that  my  intention — and,  I  think, 
the  I'ntention  of  my  colleagues  also — is  that  I  should  continue 
to  give  my  whole  time  to  the  service  of  the  bank  during  the 
few  years  that  my  strength  permits. 

On  the  proposal  of  Mr.  J.  A.  Clutton-Brock,  seconded  by  Mr. 
H.  G.  Devas,  the  following  directors  were  unanimously  re- 
elected members  of  the  Board  : — Brigadier-General  Hugh  Henry 
Tohn  Williams  Diummond.  C.M.G.,  Sir  Felix  Schuster,  Bart., 
Mr.  Char'es  Henr}'  Revnolds  Wollaston,  and  Mr.  Lindsay  Eric 
Smith. 

It  was  moved  by  Mr.  John  Hedges,  seconded  by  Mr.  Deputy 
Millar  Wilkinson,  and,  after  some  remarks  by  Mr.  S.  M. 
Wood,  was  carried  with  one  dissentient: — "That  Sir  William 
Barclay  Peat.  Mr.  Chaiies  William  Middleton  Kemp,  and  Mr. 
.Arthur  Francis  Whinney  be  re-elected  as  auditors  of  the  bank, 
to  hold  office  until  the  Ordinary  General  Meeting  next  year, 
at  a  remuneiation  of  400  guineas  respectively." 

Mr.  Deputy  Millar  Wilkinson  moved  and  Mr.  John  Hedges 
seconded  a  vote  of  thanks  to  the  governor,  the  deputy  governor, 
jnd  the  board  of  directors.  The  vote  was  unanimously 
accorded. 

It  was  moved  by  the  Governor,  seconded  by  the  Deputy 
Governor,  and  carried  unanimously  : — "  That  the  thanks  of  the 
meeting  be  given  to  the  general  managers,  the  managers  of  the 
head  office  and  branches,  the  secretary  and  the  staff  of  the  bank 
Lrenerallv  for  the  efficient  discharge  of  their  several  duties 
during  the  past  year." 

The  proceedings  then  terminated  with  a  vote  of  thanks  to  Sir 
Felix  Schuster  for  his  able  conduct  in  the  chair,  proposed  by 
Dr.  Finchman,  seconded  bv  another  shareholder,  and  carried 
unanimously. 


I 


THE    BRADFORD    DISTRICT    BANK. 

The  annual  meeting  of  the  Bradford  District  Bank,  Ltd.,  was 
held  on  January  30.  at  the  Midland  Hotel,  Bradford,  Mr. 
James  Bairstow,  in  the  absence  through  slight  indisposition  of 
Sir  Prince  Smith,  Bart,  (chairman  of  the  directors),  presiding. 

The  annual  address  of  Sir  Prince  Smith  was  read  to  the  meet- 
ing, and  was  as  follows  : — I  feel  that  my  first  word  on  the 
present  occasion  should  be  a  reference  to  the  members  of  our 
staff  who  are  serving  with  his  Majesty's  Forces.  It  is  with  the 
profoundest  regret  that  we  have  to  record  that  seven  splendid 
fellows,  full  of  promise  in  civil  life,  have  lost  their  lives  in 
the  noble  cause.  We  cherish  their  memory  and  tender  our 
deepest  sympathy  to  their  relatives  and  friends.  Many  of  our 
men  have  been  wounded — some  more  than  once — and  one  is  a 


1 3b 


Zbc  investors'  TRevtew. 


prisoner  of  war,  happily  unhurt.  We  are  proud  to  say  that 
two  members  of  our  staff  have  won  the  Military  Cross — one 
Cross  being  supplemented  by  a  bar.  Our  very  hearty  con- 
gratulations go  to  the  recipients,  and  our  best  wishes  to  all  the 
members  of  our  staff  who  are  continuing  to  serve  their  country 
in  this  time  of  crisis. 


Februarv  2,  1918. 


prise,  have  rendered  the  merchant 


an  important  contributory 


MOBILISATION  OF  NATIONAL  RESOURCES. 

As  has  been  mentioned  from  this  chair  on  a  previous  occa- 
sion, the  finances  of  the  State  are  largely  dominated  by  Govern- 
ment control,  and  the  same  may  be  said  of  various  brarxhes  of 
our  trade  and  industry.  Since  the  opening  day  of  hostilities 
the  State  has,  by  various  measures,  been  gradually  extending 
its  hold  on  the  essentials  in  food  and  in  materials  which  are 
necessary  for  its  citizens  and  for  its  armies  both  at  home  and 
abroad.  In  this  respect  it  has  also,  by  the  process  of  pooling 
its  resources,  had  to  provide  in  increasing  quantity  for  the 
needs  of  our  dominions  and  Allies. 

As  regards  the  staple  trade  of  this  district,  not  many  months 
had  passed  after  the  outbreak  of  war  before  it  was  realised 
that  wool  would  be  a  potent  factor  in  the  successful  conduct  of 
the  war.  Only  8  per  cent,  of  the  total  world's  production  was 
controlled  by  enemy  countries,  and  40  per  cent,  by  the  British 
Empire,  and  consequently  various  steps  were  taken  to  pre- 
vent the  raw  article,  and  also  wool  products,  from  reaching 
the  enemy.  Whatever  success  may  have  attended  our  efforts  in 
the  early  stages,  it  soon  became  apparent  that  some  stronger 
measures  were  necessary,  not  only  to  preserve  the  valuable  com- 
modity for  the  needs,  primarily,  of  the  Allied  forces,  but, 
secondly,  for  such  foreicn  trade  as  was  found  desirable,  and 
also  for  the  needs  of  the  civilian  population  at  home. 

WOOL  TRADE  ORGANISATION. 

You  are  fully  aware  of  the  highly  delicate  and  efficient 
organisation  which  during  the  past  hundred  years  has 
been  built  up  in  this  country  for  encouraging  growers 
in  our  colonies  and  elsewhere  and  for  securing  the  wool  for  our 
markets.  In  no  branch  of  our  national  trade  can  it  be  said 
that  more  skill,  more  initi.itive,  more  enterprise  have  been 
displayed,  than  in  connection  with  the  development  of  the  wool 
industry,  both  in  the  producing  of  the  raw  material,  and  in 
its  manufacture  through  the  various  stages  of  the  industry. 
In  this  industry  Bradford  has  played  the  leading  part  amongst 
the  textile  centres  of  the  world,  and,  aided  by  the  organisations 
that  have  been  built  for  financing  shipping,  selling,  and  dis- 
tributing, the  trade  has  been  supplied  with  raw  material  in 
sufficient  quantities  to  enable  it  successfully  to  compete  in  the 
markets  of  the  world.  The  advent  of  control  has,  for  the  time 
being,  meant  that  the  services  of  some  of  the  ablest  men 
associated  with  the  industry  are  not  being  utilised  to  their 
fullest  extent.  It  is  too  late  in  the  day  to  consider  how  far  the 
trade  could  have  been  conducted  with  complete  satisfaction 
under  the  direction  of  the  pre-war  organisations.  It  has  been 
strongly  held  that  the  Government  could  have  .secured  all  the 
control  that  was  desirable  without  having  had  recourse  to  such 
extreme  measures  as  have  been  put  into  force,  and  that 
the  essential  features  of  our  organisations  could  have 
been  maintained  unimpaired,  so  that  they  would  have 
been  available  for  the  purpose  of  picking  up  the 
threads  to  meet  the  conditions  that  will  prevail  in  after-war 
days.  As  it  is,  one  authority  after  another  has  been  set  up, 
until,  after  considerable  agitation,  a  Board  of  Control,  partly 
composed  of  thoroughly  practical  men  representing  the  trade, 
was  established  during  the  early  days  of  August  last.  The 
new  board  has  done  good  work,  and  promises  to  be  of  con- 
siderable service  in  connection  with  those  difficulties  that  will 
arise  at  the  time  the  Government  releases  its  hold  upon  the 
trade.  A  great  deal  is  being  said  about  the  reorganisation 
of  our  industrial  forces  to  meet  the  difficulties  that  will  occur 
in  after-war  days.  It  is  consequently  our  duty  to  consider 
in  what  way  the  experience  of  this  war  and  of  previous  trade 
crises  has  disclosed  any  defects  in  our  organisations  and 
niethods  of  trade.  It  is  probably  true  that  in  no  industry  is 
t^  art  of  specialisation  carried  out  to  a  greater  degree  of 
efficiency  than  in  the  manufacture  of  the  products  of  wool 
I  he  various  departments  connected  with  the  treatment  of  the 
raw  material  are  a  puzzle  to  most  people  not  actually  engaged 
in  the  industry.  In  consequence  of  this  highly  specialised 
nature  of  the  industry  free  play  has  been  given  to  the  develop- 
ment of  the  finest  qualities,  both  in  the  employer  and  the  em- 
ployee. Our  debt  to  the  inventor,  the  chemist,  the  designer, 
and  the  controller  of  machinery  cannot  be  over  estimated 
but  undoubtedly  the  State  has  not  sufficiently  recognised  in  the 
past  Its  obligations  to  provide  adequate  facilities  for  the  deve- 
lopment of  the  scientific  qualities  so  essential  to  the  trade. 
Measures  are,  however,  being  taken  to  remedy  this  defect,  and 
we  can  look  forward  with  confidence  to  the  day  when  such 
essentials  as  dye-wares  will  be  provided  in  increasing  abundance 
by  our  own  manufacturers  at  home. 

THE  POSITIOR  OF  THE  MERCHANT. 

Now  let  me  come  back  to  the  merchant  and  to  the  considera- 
lon  of  the  important  part  he  plays  in  all  that  relates 
to  the  growth  and  prosperity  of  our  textile  industry.  At 
each  end  of  the  trade  the  merchant  appears.  He  secures 
the  raw  article,  and  he  finds  the  outlet  for  the  manu- 
factured commodity.  He  anticipates  the  needs  of  the 
manufacturer,  and,  to  an  important  degree  the  tastes  of  the 
consumer.  His  knowledge  of  markets,  of  languages,  and  ex- 
changes, coupled  with  the  exercise  of  foresight,  skill,  and  enter. 


factor  in  the  development  of  world-wide  trade.  These  qualities 
are  not  the  creation  of  a  day,  but  they  are  the  result  of  the 
assimilation  of  knowledge,  in  association  with  fine  organisa- 
tions, which  have  taken  time  to  develop,  and  also  of  the  closest 
application  to  the  requirements  of  industry  and  the  needs  of 
the  peoples  of  the  world.  It  is  extremely  unfortunate  that  a 
measure  of  State  control  should  have  been  found  necessary 
under  which  the  brains  of  some  of  our  ablest  men  are  not 
utilised  to  their  fullest  capacity.  Possibly,  if  we  could  retrace 
our  steps,  our  war-emergency  measures  would  have  been 
differently  cast.  Be  this  as  it  may,  it  is  important  that  in 
the  consideration  we  may  be  giving  to  after-war  trade  condi- 
t ions  we  should  keep  well  in  mind  all  the  factors  that  have 
contributed  to  the  creation  of  our  world-wide  commerce.  It 
IS  said  that  the  war  gives  the  State  the  opportunity  of  taking 
stock  of  Its  organisations  and  of  considering  their  defects,  and, 
when  pe.ice  comes,  of  making  a  fresh  start.  We  do  not  dispute 
the  truth  of  this,  but  let  us  remember,  in  our  enthusiasm  for 
being  prepared  for  after-war  conditions,  that  our  trade  has- 
flouri.shed  exceedingly  in  the  oast,  and  that,  accordingly,  we  do 
not  want,  in  the  absence  of  strong  reasons,  to  be  engaged  in 
effecting  changes  and  making  developments  which  can  bring 
no  ultimate  benefit,  but,  on  the  contrary,  do  infinite  harm.  The 
textile  industry  of  the  West  Riding  has  been  a  signal  example 
of  an  industry  which  has  afforded  the  greatest  liberty  for  the 
development  of  initiative,  enterprise,  and  real  ability.  By  the 
assistance  afforded  under  the  elastic  system  of  credit  provided 
by  the  banks  in  the  West  Riding,  the  exercise  of  these  qualities- 
has  had  the  fullest  encouragement,  to  the  great  advantage,  not 
only  of  the  district,  but  of  the  whole  Empire.  It  will  always 
be  the  desire  of  your  directors  to  see  that  as  far  as  this  bank 
is  concerned  similar  facilities  are  available  in  the  future.  Much 
remains  to  be  done,  but  I  venture  to  think  that  it  lies  more 
in  the  direction  of  greater  encouragement  to  the  development 
of  scio-ntific  and  industrial  research,  the  teaching  of  languages,, 
and  the  study  of  the  temperaments  and  of  the  markets  of  the 
peoples  of  the  world  than  in  changes  of  a  radical  nature  in 
our  existing  organisations.  It  is  in  such  directions  as  the  fore- 
going that  there  exists  the  means  for  the  best  development  of 
our  industry.  So  long  as  the  West  Riding  can  be  provided 
with  an  ample  supply  of  raw  material,  and  so  long  as  the  State 
and  our  education  authorities  fully  recognii;e  their  obligations 
to  industry,  there  need  be  no  fear  that  our  manufacturers  and 
merchants  may  not  be  able  to  continue  to  compete  successfully 
in  any  of  the  markets  of  the  world  and  secure  for  the  com- 
munity the  trade  which  will  enable  our  machinery  to  be  used" 
to  the  fullest  advantage. 

PROFITS  OP  THE  BANK. 

Let  me  now  refer  to  our  report.  It  will  be  seen  from  the 
prints  which  your  directors  have  submitted  to  you  that  the  nett 
profit  for  the  year,  after  providing  for  all  expenses  and  making 
the  usual  provisions,  amounts  to  // 1,679,  showing  an  increase 
of  ;^'>239  over  the  previous  year.  We  brought  into  the  account 
;^28,872,  making  a  balance  available  of  /ioo,55i.  An  interim 
dividend  amounting  to  ;^I7,737,  after  de'iuction  of  tax,  was 
paid  for  the  first  half-year,  and  a  similar  dividend  is  now  re- 
commended, making  a  dividend  for  the  whole  year  at  the  rate 
of  13J  per  cent. 

We  recommend  the  application  of  £20,000  to  the  reserve  fund, 
bringinjr  that  fund  up  to  ;if3^o,ooo,  /2,ooo  to  oflficers'  pension- 
fund,  /5.(>oo  to  bank  premises  fund,  and  carrying  forward 
£^^^o^('  to  the  next  account.  Turning  to  the  b.ilance-sheet,  it 
will  be  seen  that  the  paid-up  capital  stands  the  same — vir.,  at 
/344.000 ;  the  reserve  fund,  with  the  proposed  addition  of 
;,^20,ooo,  will  stand  at  ;^3So,ooo,  as  compared  with  ;if330,ooo 
for  the  previous  year.  Our  current  and  deposit  accounts  show 
an  increase  of  over  ;^i, 397.000  at  the  figure  of  £<),2-^t„if>T ,  and 
the  amount  of  the  bank's  liability  on  acceptances  ;£iSo,i52,  as 
compared  with  /8i;3,o8o,  The  reduction  in  this  part  of  our 
business  is  a  reflection  of  the  changed  conditions  resulting  from 
the  Government  control  of  our  industry,  and  no  improvement 
is  to  be  looked  for  during  the  continuation  of  existing  con- 
ditions. The  foregoing  make  the  total  liabilities  of  the  bank 
^10,142, 134,  or  rm  increase  of  ^fe^S.tS^  over  the  previous  year's 
account.  On  the  other  side  the  cash  is  over  ;^3og,ooo  up  at 
^2,229,265.  The  investments  are  ^f  166,970  down  at  ^(f  1,358,684. 
The  bills  of  exchange  show  an  increase  of  ;^i,3o5,477  at  the 
figure  of  /2,S7i.o87.  arising  from  increased  investments  in 
British  Government  Trcas-iry  bills.  The  total  liquid  resources- 
of  the  bank  are  ;^6,459,036,  as  compared  with  .^5,011,495,  or 
equal  to  nearly  70  per  cent,  of  our  deposits,  as  compared  with 
nearly  64  per  cent,  for  the  previous  year,  which,  I  am  sure, 
Xou  will  recognise  to  be  a  very  strong  position.  The  total 
amount  due  from  customers  for  advances — ^^3, 388,678 — shows 
a  reduction  of  ^^40,948  as  compared  with  the  previous  year. 
Bank  premises  stand  at  ^^144, 267,  as  compared  with  ;^I49,246. 
The  balance-sheet  continues  to  reflect  the  abnormal  times 
through  which  we  are  passing.  The  deposits  show  an  increase 
of  nearly  18  per  cent.,  whereas  the  advances,  notwithst^ding 
the  fact  that  they  include  amounts  advanced  in  respect  to  War 
Loans,  show  a  decrease  of  about  i  per  cent.  The  deposits  of 
all  banks  are  largely  affected  by  the  expansion  in  credits  owing 
to  war  finance.  This,  coupled  with  the  fact  that  many  traders, 
who,  owing  to  Government  control  of  trade,  have  realised  their 
stocks  and  are  unable  to  renlace  them,  is  responsible  to  a  large- 
extent  for  the  expansion  of  deposits  and  the  contr.icfion  of  loans. 
At  some  future  date  the  position  may  be  snbstanlially  reversed. 
At  the  time  of  our  last  meeting  reference  was  made  to  the  new 
4  per  cent,  and  5  per  cent.  War  loan.s.  which  had  made  their 


February  2,  1918. 


Zbc  3nve8tor6'  IRcview. 


131 


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IS 

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-appearance  on  January  ii,   1917.     Prior  to  tlie   issus   the  Trea- 
sury had  announced  a  cessation  of  the  sales  of  F.xchaquer  bonds, 
"V^'ar  Expenditure  certificates,   and  also  of  Treasury  bills.     The 
AVar  Loan  was   a   great  success,   the  total  amount   applied  for 
being  ;^'9SS, 706,000,  of  which  ^'966,048,000  was  in  lespect  to  the 
5  per   cent,   loan  and  the  balance   of   ^^22, 658, 000  in  respect   to 
the  4  per  cent,  tax-free  loan.     On  December  31,  iqi6,  the  total 
•amount  outstanding  for  British  Government  Treasury  bills  was 
;^i, 1 15,000,000,  but  owing  to  the  cessation  of  the  issue,  and  the 
application  of   part  of  the  proceeds  of   the   new  War  Loan  to 
maturing  bills,  the    amount  running   on   British   Treasury    bills 
was  reduced  to  ^^463,000,000   on    March  31,   1917.     Ihe  sale  of 
Treasury  bills  was  resumed  at  the  end  of  April,  and  at  the  end 
[■of   the   year    the    amount   outstanding   had    again    gone    up    to 
'i^i, 057,000,000.     During  the    autumn   the   Government  initiated 
the  system  of  continuous  borrowing  by  tht-  issue  of  4  per  cent, 
tax-free  and  5  per  cent.  War  Bonds,  repayable  at  a  premium, 
the    latter   investment,   including   the   premium   payable    on   re- 
-demption,    showing   a    return    amounting     to,     approximately, 
£$   7s.   6d.    per  cent.        By  the   end   of    1917   the   total  sum  of 
;^2o8,ooo,ooo  had  been  subscribed  for  the  bonds.     'Ihe  effect  of 
these   and    other    Government    borrowings   was   that     the    total 
amount  of  our  National  Debt  on  December  31,   1.517,  amounted 
to   ^5,524,000,000,   as  compared   with  ;^7io,ooo,ooo  at   the  time 
of  the  outbreak  of  war,  or   an   increase  owing  to  the    war    of 
;^4,8i4,ooo,ooo,    representing    an     additional      charge     of     over 
jf2oo,ooo,ooo  for  interest  on  the  revenue  of  the  country.     Now, 
when  we  last  met  reference  was  made  to   the  possible  efiect  of 
the    War   Loans  on   the   deposits    of   the    bank.     Whilst    at   the 
time    very    large    sums    were    withdrawn    for    investment,     we 
have   been   pleased    to    witness   that     the     amounts    withdrawn 
have,  in   one  way  or  another,  been  more   than  made   up.     The 
bank,    however,    has    rendered    every    possible   assistance    and 
granted   the   fullest    facilities  to  intending    investors    in   respect 
to  the  War  Loans,  War  Bonds,  and  all  Government  issues.     Re- 
garding the  money  market  conditions,   the  year  opened   with  a 
jBank  rate  of  6  per  cent,,  which  came   down   to  5J  per  cent,  on 
"anuary  18,   and  to  5  per  cent,  on  April  5,  since  which   date  it 
s  remained   at  the   last-named    figure.     The  average  rate    for 
:he  year  was  £^  3s.  per  cent.,  as  compared  with  £^  gs.   3d.  per 
ent.  for  the  previous  year.     Treasury  bill  rates  for   three  and 
six  months  stood  at  4J  per  cent,  in  June,  and  were  increased  to 
4j  per  cent    in  July,  but  ultimately  were  reduced  to  4  per  cent, 
•on  December  27.      Fhe  average  rate  for  three  months"  fine  bills 
"Was  £4  i6s.  2d.  per  cent.,  as  compared  with  ^^5  4s.  3d.  per  cent. 
:for  the  previous  year. 

PBRSONAL  ECONOMY  OF  NATIONAL  IMPORTANCE. 

I  do  not  think  I  ought  to  let  this  opportunity  pass  without 
again  referring  to  the  great  need  there  is  for  the  reduction 
in  the  personal  consumption  of  goods  to  the  lowest 
possible  amount,  not  only  on  account  of  the  immediate  needs 
for  carrying  on  the  war,  but  in  view  of  the  needs  of  the  country 
in  after-war  days.  The  less  we  individually  consume  in  goods 
the  less  will  be  the  amount  of  goods  imported  from  abroad, 
and  as  we  have  to  pay  for  our  excess  in  imports  over  exports 
either  by  realising  securities  or  by  raising  loans  in  fqreign 
ountries,  the  subject  of  the  consumption  of  goods  is  one  of 
Teat  importance,  as  bearing  not  only  on  the  immediate  finan- 
ial  resources  of  the  country,  but  on  its  future  prosperity.  We 
nust  remember  that  by  tTie  sale  of  our  foreign  securities  we  are 
losing  a  large  income  from  foreign  countries,  and,  again,  as  a 
result  of  raising  loans  abroad,  money  will  have  to  go  out  of  the 
country  for  the  purpose  of  paying  interest.  All  this  will  tend 
to  make  substantial  inroads  in  the  balance  of  this  country's 
foreign  trade,  which  in  pre-war  days  was  in  favour  of  this 
country.  This  must  imply  that  there  will  be  the  greater  call 
■on  our  industries  for  an  increase  in  productivity,  and,  for  a 
time,  there  must  be  less  money  available  for  investment  in 
foreign  countries,  which  in  the  past  has  been  such  an  important 
factor  in  the  growth  of  our  trade.  Reverting  to  the  profits  of 
the  bank,  as  already  stated,  there  is  a  slight  increase  as  com- 
pared with  the  previous  year,  and  the  same  rate  of  dividend 
i^  recommended.  Your  directors  feel  that  during  such  times 
as  those  through  which  we  are  passing,  for  which  there  is  no 
precedent,  the  only  course  open  is  to  strengthen  the  resources  of 
the  bank  in  every  way  possible.  The  future  is  a  closed  book. 
The  outbreak  of  war  furnished  many  surprises,  and  there  may 
"be  many  surprises  yet  in  store  for  us  before  peace  is  declared. 
As  far  as  one  can  judge,  there  will  be  great  contraction  in  many 
branches  of  our  trade,  which  is  bound  to  have  its  effect  on  our 
profits,  and  the  longer  the  war  lasts  the  more  the  State  will 
replace  the  trader  and  extend  its  control  on  finance  and  com- 
merce. When  peace  comes  there  may  be  greater  surprises  still, 
and  we  shall  be  signally  lacking  in  our  trust  to  the  shareholders 
and  customers  if  we  do  not  see  to  it  that  notiiing  is  wanting  on 
our  part  whereby  we  may  be  prepared,  as  far  as  is  possible, 
for  every  eventuality.  May  I  again  express  the  hope  that  the 
time  IS  not  far  distant  when  the  Allies  will  emerge 
victoriously  from  the  present  conflict,  and  that  we  may  there- 
atter  enjoy  a  long  era  of  peace?  Your  directors  look  forward 
*;'*'  Sr'?at  hopefulness  to  the  period  of  trade  development  that 
will  follow  the  cessation  of  hostilities,  and  for  the  opportunity 
•which  will  be  presented  for  fhe  bank  to  be  of  increasing  ser- 
■^ice  to  the  community.  Much  has  been  said  as  to  fhe  financial 
rovision  made  by  banking  houses  for  trade  purposes  in  the 
ast.  We  are  purely  a  traders'  bank.  Our  resources  have 
jways  been  held  for  the  development  of  our  industries,  and  it 
IS  the  desire  of  your  directors  that  the  bank  should  continue 
to  serve  the  districts  in  which  it  is  represented  to  the  utmost  of 
-ts  capacity. 


UNION    BANK    OF    AUSTRALIA. 

The  half-yearly  general  meeting  of  proprietors  of  the  Union 
Bank  of  Australia,  Ltd.,  was  held  on  Monday  at  71,  Cornhill, 
E.G.,   Mr.   Henry  P.   Sturgis  (the  chairman)  presiding. 

The  Manager  (Mr.  A.  C.  Willis)  read  the  notice  convening 
the  meeting  and  the  report  of  the  auditors. 

The  Chairman,  in  the  course  of  his  remarks,  said:  The 
total  figures  appearing  in  the  balance-sheet,  compared  with 
those  of  August  31,  1916,  exhibit  an  increase  of  ;£i, 545,000. 
On  the  liabilities  side  the  following  items  show  increases  :— 
Reserve  fund,  ^40,000 ;  bills  payable,  ^^'45,000 ;  and  deposits, 
;£:, 716,000,  the  last  being  mainly  due  to  high  prices  ruUng  for 
produce,  seasonal  returns,  and  also  the  disinclination  to  lock 
up  funds  at  the  present  time.  This  is  a  very  satisfactory  fea- 
ture of  the  half-year,  but  we  must  be  prepared  for  some  re- 
duction in  our  deposits  in  view  of  further  war  issues  m 
Australia  and  New  Zealand.  The  Australian  Government 
have  obtained  power  from  Parliament  to  issue  loans  to  the 
extent  of  ^60,000,000,  and  the  first  instalment  of  ;£20,r.oo,ooo 
has  been  issued,  while  in  New  Zealand  the  Governm-int  hrive 
authority  to  raise  ;£24,ooo,ooo,  of  which  ^12,000,000  has  teen 
f:oated  successfully.  On  'the  assets  side  the  chief  .'ncreascs 
are  shown  in  money  at  call  and  short  notice,  ;^68o,ooo,  and 
bills  receivable,  ;f  1,959,000.  On  the  other  hand,  our  advances 
show  a  decrease  of  ;^i, 259,000.  Our  liquid  assets  oil  this  occa- 
sion amount  to  9s.  5d.  in  the  £  of  our  total  liabilities  to  the 
public.  I  am  sure  that  the  shareholders  must  be  well  con- 
tent with  the  results  of  the  half-year.  After  paying  a  dividend 
and  bonus  equal  to  14  per  cent,  iper  annum,  free  of  income- 
tax,  we  hiave  been  able  to  place  another  ^f  20,000  to  our  reserve 
fund,  Ihringing  that  fund  up  to  ;£2, 000,000,  an  amount  equal  to 
the  paid-up  capital  of  the  bank.  There  is  one  matter  con- 
nected with  our  future  profits  on  which  I  feel  I  must  say  a 
word,  and  that  is  the  heavy  increased  taxation,  to  which  we 
are  liable— .a  burden  which  I  fear  we  must  be  prepared  to  see 
further  increased  in  the  future.  In  1913  the  total  amount  paid 
by  the  bank  was,  in  round  figures,  ^40,000,  since  which  date 
the  amount  has  risen  each  year  until  in  1917  it  has  reached  the 
large  sum  of  ;^i 22,000.  Regarding  the  general  conditions 
ruhng  in  Australasia,  trade  has  been  active,  but  hampered  by 
the  want  of  shipping,  and  towards  the  end  of  the  half-year 
was  adversely  affected  by  a  strike  in  Australia  of  seamen,  coal- 
miners,  and  wharf  labourers.  During  the  half-year  weather 
conditions  have  been  good,  though  somewhat  wet,  and  seasonal 
prospects  are  bright  in  all  the  States.  A  good  lambing  was 
recorded  and  all  crops  are  well  forward.  The  season  in  New 
Zealand  has  been  normal.  The  following  cablegram  from  the 
general  manager,  dated  January  21,  has  been  received: — 
"  Favourable  weather  conditions  prevail  in  Australia  and  New- 
Zealand  at  the  present  time.  Australian  harvest — Wheat  ex- 
pected to  exceed  no  million  bushels;  smaller  aggregate  chiefly 
owing  to  reduction  of  area  under  grain,  but  excessive  rains, 
more  especially  in  Western  Australia,  affecting  yield.  Wool 
clip  is  turning  out  well,  and  there  will  be  increased  quantity 
owing  to  natural  increases  flocks."  I  now  beg  to  move  the 
adoption  of  the  repont  and  accounts. 

Mr.  Robert  C.  Nesbitt  seconded  the  motion,  which  was 
carried  unanimously. 

LENNARDS 

(BOOTS    AND    SHOES). 

The  twenty-first  annual  meeting  of  Lennards,  Ltd.,  share- 
holders, was  held  at  the  Grand  Hotel,  Leicester,  on  February  i, 
1918.  The  directors  present  were  T.  J.  Lennard,  J.F.  (chair- 
man), J.  WaUis  Goddard,  J.  G.  Chattaway,  T.  Singlehurst,  John 
Lennard,  and  the  secretary  (J.  E.  Hazzledine).  The  Chairman 
moved  the  adoption  of  the  report  as  printed  and  circulated,  and 
said  :  — 

COHIHO  OF  AOB. 

On  behalf  of  the  board,  I  have  pleasure  in  moving  the  formal 
adoption  of  the  twenty-first  annual  report  and  balance-sheet  as 
printed  and  circulated.  The  incorporated  company  comes  of 
age  this  year,  although  I  founded  the  business  40  years  ago. 

EARNINQ    POWER. 

The  nett  profit  tor  1917  is  ^^53,858. 

It  is  proposed  to  pay  6  per  cent,  on  the  preference  shares  and 
10  per  cent,  on  the  ordinary  shares,  as  usual,  and  carry  for- 
ward the  whole  of  the  available  balance  of  £2y,2b$.  This  sum, 
added  to  the  reserve,  ^^40,870,  makes  a  total  reserve  of  .£68,135. 
Twenty-one  years  ago  the  first  paid-up  capital  of  the  incor- 
porated company  was  only  j^6o,ooo. 

Last  year,  referring  to  our  freehold  retail  branch  premises,  I 
.said  :  "  As  opportunity  occurs,  and  when  suitable  offer  is  made, 
it  is  a  distinct  advantage  to  acquire  our  own  freeholds  as  far 
as  capital  permits."  During  1917  we  acquired  new  freehold 
premises  in  five  new  cities  and  towns,  and  you  will  notice  the 
total  added  for  the  year  under  freehold  shops  was  ;^i2,45i.  In 
every  case  they  were  very  desirable  acquisitions. 

The  total  nett  stock  is  ^f  264,818,  being  £75^900  more  than  at 
the  end  of  19 16,  but  a  large  proportion  of  this  increase  is  being 
held  up  by  Government.  This  increases  the  debit  balance  at 
the  bank,  although  in  a  constantly  developing  business,  and 
especially  with  rising  values,  it  must  be  evident  to  you  that  we 
are  under-capitalised. 

HANUFACTaRINQ. 

In  this  respect  an  extraordinary  meeting  will  follow  this 
annual  shareholders'  meeting,  at  which  your  directors  will  pro- 


132 


■^be  Jnvestors'  TReview. 


Febrlary  2,  1918. 


pose  to  increase  the  capital  by  ^^jo.ooo — 25,1)00  £i  6  per  cent, 
preiference  shares  to  be  issued  at  par,  and  25,000  £1  ordinary 
shares  to  be  issued  at  24s,  (same  price  as  tne  last  ordinary  shares 
were  issued  at),  the  total  premium  of  ;^5,ooo  to  be  carried  to 
reserve.  It  is  also  specifically  required  to  establish  a  new  and 
enlarged  factory  at  Bristol.  This  addition,  when  issued,  will 
increase   the  paid-up  capital    from   ^^200,000  to  ;£25o,ooo. 

The  industrial  difficulties  of  the  ye.ir  have  be<  n  enormous. 
Not  only  has  our  labour  been  depleted  to  dangerous  margins, 
but  the  strangle-hold  laid  upon  all  materials  by  the  Government 
has  made  it  increasingly  difficult  to  carry  on.  No  one  has  a 
■  right  to  expect  business  will  be  "  as  usual  "  during  a  great  war, 
and  we  are  all  prepared  to  make  sacrifices  to  the  end  for  a 
victorious  pe-ice,  but  the  inefficient,  procrastinating  results  ac- 
cruing from  the  newly  created  Government  Departments  in 
dealing  with  industrial  concerns  is  most  deplorable. 

Lennards,  Ltd.,  is  "all  British."  In  1916  we  tried  to  get 
boots  from  the  United  States  made  on  British  models  to  British 
specifications ;  orders  were  placed  for  about  ;^ioo,cx5o.  On 
February  2-;  last  year  the  Government,  without  notice,  pro- 
hibited imports. 

The  following  sentences  are  extracted  from  the  various 
Government  replies  received  to  our  applications  for  licence  to 
import  these  goods,  whicih  were  paid  for  about  nine  months 
ago  :  — 

April  26. — "  I  have  to  inform  you  that  the  prohibition  is 
being  rigidly  enforced." 

June  6. — "  Your  letter  has  been  transmitted  to  the  Depart- 
ment of  Import  Restrictions." 

June  9.—"  I  am  unable  at  present  to  comply  with  your  request 
for  a  licence." 

September  13. — "  I  regret  that  during  my  absence  the  facili- 
ties which  arc  open  to  you  for  shipment  of  the  goods  in  ques- 
tion were  not  explained.  Their  importation  will  be  licensed 
if  they  are  freighted  on  an  American  irooper    or  supply  ship." 

September  29. — "  The  conditions  stated  in  my  letter  of  the 
13th  inst.  must  be  strictly  adhered  to,  or  the  goods  will  be 
liable  to  seizure." 

November  23. — "  The  American  Chamber  of  Ccmmeroe  is 
collecting  information  on  the  subject." 

November  27. — "I  must  ask  you  to  exercise  ordinary 
patience." 

January  2,  1918. — "  I  am  to  say  that  the  Controller's  decision 
in  connection  with  the  admission  of  a  certain  percentage  will 
shortly  be  communicated." 

The  real  freedom  of  the  seas  is  freedom  to  trade.  We  were 
not  able  to  induce  U.S.A.  troopships  to  bring  our  goods,  and 
I  suggest  it  is  not  the  duty  of  any  Government  to  control 
civilian  footwear,  and  penalise  loyal  citizens  in  this  fashion. 

The  Government  are  very  properly  using  all  their  power  and 
all  their  energy  to  produce  military  ^nd  naval  footwear,  but 
they  have  most  foolishly  become  profileers,  and  iiave  entered 
upon  large  scheme  of  producing  and  controlling  civili.in  foot- 
wear in  this  country,  .Six  or  seven  months  aG;o  they  flooded  the 
rewspiipers  with  announcements  of  what  would  immediately  be 
done  to  supply  reliable  lower-priced  footwear  to  the  British 
public.  The  result  has  been  annoyance  and  disappointment  to 
everybody  concerned.  Instead  of  supplying  fo.itwoar  ;it  any- 
thing like  pre-war  prices  to  the  public,  their  list  of  "  39 
articles  ''  does  not  contain  a  single  number  at  less  than  double 
pre-war  price.  ,  It  is  not  a  comprehensive  list,  it  is  not  a  good 
list,  even  from  the  limited  range  of  materials  now  available. 

NON-PARTY  POLITICS. 

Politics  are  part  of  our  being  as  a  progressive  people,  but  in 
the  past  "  party  "  has  been  responsible  for  delays  and  com- 
promises upon  vital  issues.  How  long  are  the  trading  com- 
munities of  this  country  going  to  submit  to  a  control  which  is 
useless  and  unreasonable,  which  adds  Go-vernment  Departments 
without  counting  cost,  instead  of  bending  all  its  energies  to 
focure  the  great  victory?  If  I  may  speak  as  a  business  man 
controlling  a  big  busipess,  I  say  it  is  time  for  the  Kmpire  to 
insist  upon  the  selection  of  experts  to  control  the  business  they 
understand.  The  recent  conference  between  Sir  Arthur  Gold- 
finch and  representatives  of  the  trade  press  is  a  step  in  the 
right  direction. 

Lord  fthondda  know^  all  about  coal,  therefore  he  is  placed 
at  the  head  of  the  Food  Control. 

Sir  Eric  Geddes  knows  all  about  railways,  therefore  he  is 
placed  in  command  of  naval  affairs. 

Dr.  Macnamara  has  had  academic  experience,  therefore  he  is 
Financial  Secretary  to  the  Admiralty. 

No  appreciation  can  be  too  high  for  the  great  service  ren- 
dered by  Mr.  Lloyd  George  to  the  Trnpire,  but  he  need^  united 
support  and  unswerving  loyalty  and  efficiency  in  those  who 
occupy  important  Government  positions  if  he  is  to  "  make 
good  "  in  Armageddon. 

There  seems  such  a  gulf  between  speeches  and  specific  per- 
formance;  into  wh.at  pigeon-hole  have  the  "Paris  Resolu- 
tions "  been  dropped  ?  Statesmen,  as  trustees  of  the  Empire, 
should  place  security  before  every  other  consideration. 

■Let  me  give  you  an  extract  of  single  sentences  from  27  letters 
I  received  about  ten  days  ago  from  leading  manufacturers  on 
♦his  vexed  subject  of  Socialistic  "  war-time  boots,"  which  ought 
to  have  been  available  for  the  use  of  the  public  months  ago. 
Northampton. — 

"  We  are  prepared  to  accept  orders  on  the  strict  undcrstand- 
in.s  they  are  not  shown." 

"  We  have  no  official  instructions  to  proceed  with  any  yet/' 

"  There  is  nothing  really  settled  about  the  matter  yet." 

"  No  leather  has  been  released  for  war-time  boots  so  far." 


"  No  instructions  either  as  regards  material  or  price." 

"  No  definite  arrangements  have  been  made  with  regard  to 

the  allotment  of  standard  boots." 
"  We  do  not  know  when  we  sh.iU  be  able  to  make  any." 

Leicester. — 

"  We  have  not  yet  commenced  to  make  war-time  hoots." 

"  We  have  been  yo  humbugged  with  this  matter  that  we  feel 

we  will  not  proceed  until  we  know  something  definite." 

"  We  have  not  yet  received  upper  leather  from  which  to  cut 

bulk." 

"  We  have  not  been  able  to  get  any  leather  for  these  goods."' 
"  No  leather  being  released  for  this  purpose." 
"  Leicester  is  entirely  unenlightened  as  to  this  business." 
Kettering. — 
"  We  have  not  yet  commenced  making." 

"  Immediately  our  samples  have  been  approved  by  the  local 
committee  we  will  communicate  with  you." 
Stafford.— 

"  Not  received  anything  at  all  from  raw  m.aterial  depart- 
ment." 

Rushden. — 

"  Nothing  is  settled  in  reference  tt  standard  boots." 

"  As  sooQ  as  we  receive  notice  to  start  we  will  forward  you 

sample  pairs." 

"  Government  have   not  yet  released    sole    leather    or    upper 
leather." 
Kingswood. — 

"  Cannot  say  definitely  how  we  shall  have  to  deal  with 
them." 

"  We  have  no  definite  instructions  from  the  Director  of  Sup- 
plies." 

London. — 

"  We  are  unable  to  obtain  war-time  sole  leather." 
Norwich. — 

"  Up  to  the  present  we  have  nothing  settled." 
Northamptonshire. — 

"  Material  has  not  yet  been  released  by  the  Government." 

"  We  do  not  anticipate  being  in  a  position  to  make  standard 
boots  for  -some  time." 

"  We  understand  there  are  new  specifications  coming  oot." 

"  We  are  told  to  wait  for  future  particulars." 

The  general  specification  is  not  sufficient  to  produce  the  same 
article  in  the  boot  and  shoe  trade  in  various  districts.  The 
Government  advisers  ought  to  have  known  this ;  they  should 
have  produced  their  own  standard  samples.  Although  they  have 
arranged  for  6i  per  cent,  prompt  cash  discount  in  seven  days, 
they  have  not  dealt  with  the  point  of  time  in  transit.  During 
the  war,  the  railway  companies  have  taken  as  long  as  ten  days 
from  date  of  invoice  to  deliver  goods.  A  clear  undarstanding 
with  regard  to  a  detail  of  this  kind  might  surely  have  been  ex- 
pected from  Government  departments  whose  chief  title  to 
wisdom  lays  in  their  accountancy. 

The  defect  in  Government  management  of  affairs  seems  to  be 
that  responsibility  for  mistakes  or  mismanagement  cannot  be 
brought  home  to  individuals. 

To  restrict  the  height  of  ladies'  boots  may  have  been  a  useful 
economy  in  material,  but  to  prohibit  the  sale  of  those  now  in 
retail  shops  after  to  day  is  a  foolish  and  wasteful  regulation. 

PATRIOTISM. 

We  have  303  men  serving  with  the  colours,  ig7  of  whom  were 
volunteers.  All  war  bonus  has  now  been  merged  into  wages,  and 
the  year  1Q17  showed  an  increase  of  ^'3,346  wages  over  the 
bonus  year  of  1916.  At  Christmas  we  again  sent  a  parcel  to 
employee  soldiers ;  most  appreciative  letters  of  acknowledgment 
have  been  received.  From  patriotic  motives  there  has  been  no 
extension  of  our  business  during  the  year ;  on  the  contrary,  we 
have  closed  branches. 

I  think  you  will  agree  with  me  that  the  report  submitted,  and 
the  result  attained,  is  good,  but  it  is  owing  to  the  volume  of 
business  done,  as  the  percentage  of  gross  profit  is  considerably 
less. 

In  conclusion,  I  am  again  able  to  speak  highly  of  the 
patriotism  and  loyalty  of  the  whole  staff,  working  under  diffi- 
culties that  would  be  unbearable  were  we  not  convinced  that  the 
British  Empire  is  championing  a  sacred  and  just  cause  against 
a  most  unscrupulous  foe,  and  that  our  final  victory  is  certain. 

I  have  much  pleasure  in  moving  the  adoption  of  the  report  as 
printed  and  circulated. 

The  report  was  adopted,  the  additional  capital  authorised 
subject  to  confirmation  by  the  Treasury,  and  a  hearty  vote  of 
thanks  to  the  staff  closed  the  proceedings. 

Messrs.  Tribe.  Clarke,  and  Co.,  the  chartered  accountants, 
were  reappointed. 

DUNLOP  RUBBER. 

The  nineteenth  ordinary  general  meeting  of  the  Dunlop 
Rubber  Co.,  Ltd.,  was  held  on  Tuesday  at  14,  Regent  Street, 
S.W.,  Sir  Arthur  du  Cros.  Bart.,  M.P.  (deputy-chairman  and 
managing  director),  presiding. 

The  Secretary  (Mr.  Arthur  Cunningham)  read  the  notice  con- 
vening the  meeting  and  the  auditors'  report. 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  said   that   the  profit  shown  in  the   accounts  was  the 


Februarv  2,  1918. 


^be  investors'  IReview^ 


133 


I 


highest  yet  earned  by  the  company.  The  acjtual  nett  trading 
profit  was  ^if  505,000,  and  adding  the  profits  of  the  rubber  estates, 
they  had  a  total  of  ;^'67o,ooo,  as  against  jf  564,000  last  year. 
The  results  of  the  year  were  achieved  in  the  face  of  infinite 
difRculties  of  management.  To  carry  on  the  company's  business 
at  all  was  a  task  of  great  difficulty,  but  to  do  .so  with  an  organ- 
isation which  had  now  become  a  mere  skeleton  of  what  it  was 
before  the  war,  and  to  increase  the  sales  of  the  company  at  home 
by  53  per  cent,  over  igi6,  was  an  achievement  reflecting  the 
greatest  credit  upon  all  concerned.  Their  perplexities  were 
added  to  by  the  abnormal  fluctuations  which  occurred  in  the 
market  price  of  rubber  and  of  other  raw  materials.  The  profits 
for  the  year  were  maintained  upon  a  schedule  of  prices  agreed 
with  the  Government,  which  yielded  a  substantially  less  per- 
centage of  profit  on  turnover  than  had  ever  been  the  case  in  any 
normal  year.  No  increase  of  price  was  asked  for  by  the  com- 
pany from  the  public  until  30  months  after  the  outbreak  of  war. 
Then,  in  face  of  unprecedented  rises  in  wages,  raw  materials, 
and  the  general  cost  of  carrying  on  the  business,  they  made  for 
the  first  time  an  advance  in  prices,  which  immediately  became 
the  subject  of  inquiry  and  negotiation  between  tlie  Government 
and  the  company.  The  upshot  of  the  negotiations  was  that  an 
equitable  basis  of  price  was  fixed,  which  would  be  subject  to 
revision,  but  which  satisfied  both  sides  for  the  moment,  and  in 
the  opinion  of  the  directors  was  a  most  advantageous  one  for  the 
Government.  If  the  company  had  carried  on  the  same  volume 
of  business  in  peace  time,  or  even  'n  war  time,  with  ordinary 
consumers,  they  would  have  quite  legitimately  and  in  open  com- 
petition realised  a  considerably  larger  profit  than  they  had  done. 
The  dividend  which  had  been  paid  absorbed  ;^25o,ooo,  or  57^ 
per  cent,  of  the  nett  profits,  as  again.st  ;,f  198,000  last  year,  or 
45f  per  cent.  The  increase  of  ;!f  52,000  was  not  due  to  an  increase 
oif  the  ordinary  dividend,  which  remained  at  15  per  cent.,  as 
during  the  last  four  years,  but  to  an  increase  of  preference 
capital  of  jf  1,200,000-  The  company  did  not  enjoy  the  full  use 
of  that  additional  capital  during  the  whole  of  the  financial  year 
— an  average  amount  of  ;,f  762,500  was  employed.  If  the  profits 
shown  by  this  company  and  those  of  the  Rubber  Estates  were 
taken  together,  Jhey  were  paying  away,  not  57J  per  cent.,  but 
less  than  42  per  cent,  of  the  profits.  With  the  additional  capital 
already  supplied  and  the  further  capital  provided  for  future 
use,  and  the  very  conservative  figures  to  which  the  estates 
had  been  reduced,  the  directors  considered  that  more  elasticity 
could  be  shown  in  the  proportion  of  profits  to  be  distributed. 
The  report  made  it  quite  clear  that  the  depletion  of  the  com- 
pany's foreign  trade  was  due  either  to  sheer  inability  to  meet 
demand  or  to  the  limitation  of  supply  by  the  Government,  and 
not  to  any  failure  of  the  trade  itself  abroad.  The  falling  off 
could  only  be  regarded,  therefore,  as  a  temporary  one  during 
the  war.  As  a  matter  of  fact,  the  sales  abroad  were  not  less, 
but  were  greater  by  17  per  cent.  Dealing  with  the  balance- 
sheet,  he  pointed  out  that  the  stock  showed  an  increase  over 
last  year  of  more  than  ;^i, 000,000,  and  an  increase  over 
the  previous  year  of  nearly  ;f2,ooo,ooo.  That  was  a  position 
for  which  they  had  long  been  striving.  The  figure  vvas  a.  larger 
one  than  would  be  necessary  in  peace  time,  and  it  might  be 
-possible  to  reduce  it  in  the  future,  and  thereby  to  bring  back 
more  liquid  money  into  the  company,  but  during  the  war,  and 
for  some  time  after,  until  all  transport  facilities  were  fully  re- 
stored, it  would  be  necessary  to  maintain  it  as  an  insurance 
against  any  interruption  of  the  company's  output.  With  regard 
to  the  solid  tyre  business,  from  which  they  expected  so  much 
in  the  future,  they  had  increased  the  output  during  the  year  by 
66  per  cent.,  and  the  quality  and  general  results  left  little  to  be 
desired.  They  were  about  to  produce  a  new  solid  tyre,  which 
had  been  fully  tested,  and  from  which  they  expected  even  better 
results.  Speaking  of  the  rubber  estates,  he  remarked  that  they 
appeared  in  the  balance-sheet  at  ^^633, 000,  being  an  increase 
of  ;^36,ooo  over  last  year.  That  figure  represented  the  actual 
money  provided  'by  the  company  for  those  properties,  but  was 
considerably  less  than  the  amount  that  the  estates  had  actually 
cost,  which  at  August  31  last  was  just  ;f94o,ooo.  They  were 
now  far  and  away  the  largest  rubber  planters  in  Europe.  They 
possessed  nearly  65,000  acres  of  rubber-growing  lands  in  the 
East,  10,000  acres  of  which  could  not  be  conveyed  to  them 
finally  until  after  the  war ;  but  by  the  end  of  December  last  they 
had  nearly  26,000  acres  of  planted  rubber,  including  750  acres  in 
an  advanced  state  of  cultivation.  During  the  present  year  it  was 
hoped  further  to  increase  the  planted  area  to  35,000  acres.  As 
to  their  cotton  mills,  he  said  that  this  undertaking  had  also 
been  an  unqualified  succe.ss.  Their  production  of  finished  cloth 
was  approaching  6,000,000  lbs.  a  year,  although  they  were  con- 
suming themselves  considerably  more.  He  explained  the 
arrangement  between  the  Dunlop  Co.  and  the  cotton  mills,  and 
said  that  if  they  had  been  obliged  to  buy  in  the  open  market  at 
current  prices  they  would  have  had  to  pay  for  the  6,000,000  lbs. 
of  cotton  cloth,  quality  for  quality,  not  less  than  ;^5oo,ooo  more 
than  they  paid  the  D.R,   Cotton  Mills. 

The  Earl  of  Albemarle  seconded  the  motion,  which  was 
carried  unanimously. 

An  extraordinary  general  meeting  was  then  held,  at  which 
resolutions  were  unanimously  approved  authorising  the  creation 
of  500,000  additional  ordinary  shares  of  £1  each,  to  be  issued 
fully  paid  up  to  the  ordinary  shareholders— payment  being  satis- 
fied out  of  the  reserve  fund  of  the  company— increasing  the 
number  of  directors  from  eight  to  ten,  without  increasing  their 
aggregate  remuneration,  and  constituting  an  endowment  scheme 
for  the  benefit  of  the  company's  permanent  male  staff. 


JOHANNESBURG   CONSOLIDATED    INVEST- 
MENT   CO. 

The  annual  general  meeting  of  the  Johannesr'ourg  Consolidated 
Investment  Co.  was  held  in  Johannesburg  on  Tuesday,  Novem- 
ber  27,  1917. 

The  Chairman  (Mr.  G.  Imroth),  in  mov'ug  the  adoption  of  the 
report  and  accounts,  said  that  the  facts  and  figures  disclosed  in 
the  directors'  report  and  accounts  must  be  regarded  as  eminently 
satisfactory,  and  spoke  volumes  for  the  strength  and  stability  of 
the  corporation,  more  especially  when  the  shareholders  bore  in 
mind  that  the  accounts  covered  the  third  year  of  the  great  war. 
He  proceeded  to  review  the  principal  figures  of  the  balance-sheet 
and  profit  and  loss  account,  and  continued  :  The  financial  posi- 
tion of  the  company  may  be  briefly  summed  up  as  follows:  — 
The  "  book  value  "  of  our  assets,  exclusive  of  the  appreciation 
of  over  two  million  pounds  (;^2,ooo,ooo)  in  our  investments  in 
stocks  and  shares,  to  which  I  have  previously  referred,  is 
^5,153,755,  an  increase  of  over  ^92,000  as  at  June  30,  1916,  and 
reflects  a  surplus  over  our  liabilities  to  the  publ'c,  exclusi-ve  of 
the  dividend  of  5  per  cent,  declared  on  June  25  last,  of 
;^4, 556,057.  Our  absolutely  liquid  assets  reflect  a  surplus,  over 
our  public  liabilities  of  over  ^f  140,000.  From  the  profit  and  loss 
account  you  will  observe  that  the  gross  profit  for  the  year  ended 
June  30,  1917,  amounted  to  ;^224,og3,  a  decrease  of  about 
;^5,ooo  as  compared  with  the  previous  year.  Against  this  our 
expenses,  including  war  donations,  staff  bonus,  &'c.,  amounted 
to  ^^29,380,  reflecting  a  decrease  of  ajbout  ^^4,000,  leaving  a  nett 
profit  of  ^^194,713,  or  ;£i,ooo  less  than  last  year.  To  the  nett 
profit  of  ;£iq4,7i3  we  must  add  the  amount  brought  forward 
from  the  previous  year,  ;£i6i,344,  making  a  total  of  ;^356,o57.- 
From  this  we  must  deduct  the  sum  of  .C^97i5°°!  being  the 
amount  of  the  dividend  of  5  per  cent,  declared  on  June  25  and 
paid  on  September  27  last,  leaving  a  balance  of  ;£i58,556  to 
be  carried  forward  to  this  year's  accounts.  I  think  you  will 
agree  with  me,  gentlemen,  that,  bearing  in  mind  the  strenuous 
times  through  which  we  have  passed,  it  is  extremely  satisfac- 
tory to  have  been  able  to  maintain  our  dividend,  which  is  this 
year  paid  free  of  English  income-tax,  and  provide  for  all  de- 
preciation without  encroaching  on  our  reserve  fund.  Our 
agency  of  the  Alliance  .\ssurance  Co.,  Ltd.,  and  other  indus- 
trial concerns  with  which  we  are  connected  continue  to  show 
satisfactory  results.  .A.t  our  last  meeting  our  pernranent  chair- 
man (Mr.  S.  B.  Joel)  informed  you  of  the  negotiations  he  was 
conducting  with  the  other  diamond  mining  companies  and  the 
Government,  with  a  view  to  restricting  and  controlling  the 
output  of  diamonds.  You  will  note  (rom  the  directors'  report 
that  these  negotiations  were  satisfactorily  concluded,  and  the 
arrangements  made  have  proved  eminently  successful  to  all 
concerned.  I  think  you  will  agree  with  me  that  the  diamond 
industry  and  all  those  connected  therewith  are  under  a  deep 
debt  of  gratitude  to  Mr.  S.  B.  Joel,  and  must  heartily  con- 
gratulate him  on  the  success  of  his  efforts.  Smce  the  date  of 
our  last  meeting  I  think  the  principle  of  the  inadvisabihty  of 
the  State  embarking  in  mining  ventures  has  been  generally 
accepted.  During  the  year  covered  by  your  accounts  the 
Government  offered  two  areas  for  public  tender.  We  made 
.substantial  tenders  for  both  these  areas,  neither  of  which  was 
accepted.  Since  the  close  of  our  financial  year  further  leases 
of  Government  ground  have  been  offered  for  tender.  I  am 
pleased  to  be  able  to  announce  that  the  tender  of  Messrs.  Bar- 
iiato  Brothers  for  one  of  these  leases  has  been  accepted,  and 
that  that  firm  has  offered  our  company  a  substantial  participa- 
ti'on  in  the  business.  This  offer  we  have  accepted,  and  we  con- 
fidently anticipate  that  our  participation  in  this  venture  will 
be  most  advantageous  to  the  company.  It  is  proposed  to  form 
a  company  with  a  capital  of  ;f  1,500,000,  the  whole  of  which  has 
been  guaranteed.  Three  hundred  thousand  (300,000)  shares, 
fully  paid  uip,  wiU  be  issued  at  par,  and  on  the  remaining 
1,200,000  shares  2s.  per  share  will  be  paid  at  once,  the  balance 
to  be  called  up  as  required.  It  will  interest  you  to  learn  that 
it  has  been  decided  to  afford  the  public  the  opportunity  of  sub- 
scribing for  150,000  of  the  fully  paid  up  shares  at  par. 

The  Chairman  proceeded  to  refer  in  detail  to  the  position  of 
the  mines  of  the  company's  group.  The  shareholders  would 
note  from  the  directors'  report  that  the  total  value  of  the  gold 
produced  by  their  group  of  mines,  exclusive  of  the  production 
of  the  Randfontein  Central  and  Langlaa^te  Estate  Gold  Mining 
Companies,  for  the  year  ended  June  30,  191 7,  amounted  to  over 
four  and  a-half  million  pounds  (^4,500,000),  and  that  this  year 
a  very  considerable  increase  was  anticipated.     .     .     . 

In  conclusion,  the  Chairman  said :  I  would  like  to  express  the 
thanks  of  the  board  of  directors  to  the  members  of  the  staff, 
collectively  and  individually,  for  their  excellent  work  during 
the  past  year.  In  view  of  the  great  increase  in  the  cost  of 
living  and  in  recognition  of  their  loyal  services,  your  directors 
recently  granted  the  staff  a  special  war  bonus.  I  am  sure  this 
action  will  meet  with  your  cordial  approval.  Eight  hundred 
and  three  members  of  our  staff  in  South.  Africa  and  employees 
of  our  group  of  mines  have  enlisted  for  active  service.  Of  this 
number,  I  re.gret  to  have  to  report  that  thirty-two  have  fallen 
in  action  and  fifty  are  wounded  or  prisoners  of  war.  To  their 
relatives  and  dependents,  gentlemen,  we  extend  our  deepest 
sjrmpathy. 

Mr.  Charles  Marx  seconded  the  motion,  which  was  carried 
unanimously. 


':i4 


Zbc  Jnvestots'  TRevtew. 


February  2,  1918. 


THE  NATIONAL  PROVINCIAL  BANK  OF  ENGLAND.  Ltd, 


Head    Office        - 

CAPITAL— Paid  Up 


IS,    ]BISMOI»SGATE,     ILiON^OON^,    E.C.a. 


Uncalled 
Reserve  Liability 
Subscribed  Capital 


£3,000,000 

2,300,000 

_   10,600,000 

£15,900,000 


KESBRVB    FUND  (invested  in  British  Government  Securities),  £2,100,000. 

Number  of  Shareholders,  19,796. 


'C»I,IN  WIF.DKUICK  CAMPBKLL,  Esq.  D1BE0TQB8. 

MAUHICK  OTHO  FITZGERALD,  Esq. 
CHARLES  R.  GILLIAT,  Esq. 
WILLIAM  HENRY  NEVILLE  008CHEN,  Esq. 
Thk  Rioht  Hon.  LOUD  INCIICAI'E,  (J,C.M.G.,  K.C.S.I.,  K.C.I.E. 
FRANCIS  ALEXANDKR  ,7OHN8T0N,  Esq. 

JOINT    GENERAL    HANACEBS.— D.  J.  H.  CUNNICK,  Esq., 
SOIilCITORS.— EDWARD  HUGH  NORRIS  WILDE,  Esq. 


Colonel  Sir  CLAUDE    VILLIERS  EMILIU8  LADRIB,  B«rt. 
FRANCIS  CHARIjES  LE  MARCHANT,  Ebo.  [C.B.,D.8,0. 

Thk  Rioht  Hon.  Tiik  EARIy  OF  LICHFIELD. 
GE0R(4E  FORHKS  MALCOLMSON,  Esq. 
SELWYN  ROHKRT  PRYOB,  Esq. 
ROBERT  WIOKAM,  Esq. 
FREDERICK  ELKV,  Esq.,     A.  G.  HOPEWELL,  Esq. 
WALTER  EDWARD  MOORE,  Esq. 


BIOHTY-FIFTH     REPORT     OF    THE 


The  Directors  have  the  pleasure  to  submit  the  BalaiK-e-sheet  for  the  year 
1917,  and  to  report  that  after  making  provision  for  all  bad  and  doubtful  debts, 
for  the  rebate  of  discount  on  current  bills,  and  providing  £148,000  as  a  Bonus 
to  the  Staff  and  allowances  to  those  members  on  active  service,  the  profits, 
including  £98,220  13s  Od  brought  forward,  amount  to  £1,312,932  Os  2d,  which 
has  been  appropriated  as  follows : — 
Interim  Dividend  of  8  per  cent.,  subject  to  deduction  of  Income  £  6    d 

Tax  (£60,000),  paid  in  August  last 240,000    0    0 

A  further  Dividend  of  8  per  cent.,  subject  to  deduction  of  In- 
come   Tax  (£60,000),  making  16   per   cent,  for  the    year, 

payable  5th  proximo 240,000    0    0 

Transferred  to  Reserve  Fund 300,000    0    0 

Placed  to  Contingencies 350,000    0    0 

.  Balance  carried  forward  to  1918 182,932    0    2 

£1,312,932    0    2 

The  Directors  retiring  by  rotation  are  Francis  Alexander  Johnston,  Esq., 
■Selwyn  Robert  Pryor,  Esq.,  and  Colin  Frederick  Campbell,  Esq.,  all  of  whom, 
being  eligible,  offer  themselves  for  re-election. 


DIRECTORS    TO     BE     PRESENTED    AT      THE 
TO     BE     HELD    ON     31st    JANUARY,     1918. 


MEETING    OF    SHAREHOLDERS 


The  Dinictors  have  to  announce  the  retirement  in  June  last  of  Mr.  Tbomsg 
Eatall,  after  a  long  and  fiithful  service  of  fifty-one  years,  during  fourteen  of 
which  he  occupied  the  jwsition  of  Joint  General  Manager, 

Mr  A.  O.  Hopewell,  Joint  Manager  of  the  City  Office,  has  been  appointed  a 
Joint  General  Manager. 

In  accordance  with  the  resolution  passed  at  the  Extraordinary  General 
Meetings  held  last  year,  the  Bank  is  now  conducting  the  business  of  Trustees 
and  Executors. 

The  Directors  also  announce  that  they  have  made  a  provisional  arrangement 
for  the  amalgamation  of  the  Union  of  London  &  .Smiths  Bank,  Ltd.,  with  tbfs 
Bank  as  from  Ist  January,  1918.  Special  Meetings  for  the  purpose  of  carrying 
out  the  arrangement  will  Iw  called  at  an  early  date. 

As  from  1st  July  last  this  Bank  has,  with  Lloyds  Bank  Limited,  become 
Joint  Proprietors  of  Lloyds  Bank  (France)  and  National  Provincial  Bank 
(France),  Limited. 

In  conformity  with  the  Act  of  Parliament,  the  Shareholders  are  required  to 
elect  the  Auditors  and  fix  their  remuneration.  Sir  William  Barclay  Peat 
(of  Messrs.  W.  B.  Peat  &  Co.)  and  Mr.  Nicholas  Edwin  Waterhouse  (of 
Messrs.  Price,  Waterhouse  4  Co.),  the  retiring  Auditors,  offer  themselvea  for 
re-election. 


13J«.i:iA.X«CE:  -  BHESESV,    SXal:    Deoexmlxex*,    1017. 


^<3apital:-  LIABILITIES. 

40,000  Shares  of  £75  each,  £10  10s  paid      ... 
.215,000      „  £60    ,,      £12 

TBeserre  Fund        

"Current,  Deposit,  and  other  Accounts,  including 
rebate  on  Bills  not  duo,  provision  for  bad 
and  doubtful  debts,  contingencies,  &c. 

:  Acceptances  and  Endorsements  of  Foreign  Bills 
on  Account  of  Customers,  and  obligations 
under  Treasury  Minutes      

■  Profit  and  Loss  Account : — 

Balance    of    Profit     and 

Loss  Account,  including 

£98,220  13s  Od  brought 


£ 
420,000 
2,580,000 


3,000,000    0    0 
2,100,000    0    0 

5,100,000    0    0 


112,597,468  10    7 


1,982,964     7    7 


from  year  1916 
Less    Interim 

Dividend,  8 
rper  cent. 
-  subject      to 

deduction  of 

Income  Tax 

(£60,000) 

paid        in 

August  last  £240,000    0    0 
,,       Dividend 

of  8  per  cent. 

subject      to 

deduction  of 

Income  Tax 

(£60,000) 

payable  5th 

Feb.  next       240,000    0    0 
,,  Transferred 

to     Reserve 

Fund  300,000    0    0 

,,  Placed  toCon- 

tingenoies      350,000    0     0 


£1,312,932    0    2 


ASSETS. 

Cash  at  Bank  of  England  and  at  Head  Ofiice 
and  Branches  

Money  at  Call  and  Short  Notice  


Investments,   including  5%    War   Loan  taken 
.     at   Cost    Price,  and    other   Securities    at 
Market  Prices  ruling   on  31st   December, 
1917  :— 
British     Government     Se- 
curities, including  Trea- 
sury Bills  £37,712,035  12    1 

(Of  which  £115,973  is 
lodged  for  public  ac- 
counts) 

Indian  and  Colonial  Govern- 
ment Securities ;  Deben- 
ture, Guaranteed,  and 
Preference  Stocks  of 
British  Railways ;  British 
Corporation,  and  Water- 
works Stocks      

Canal,  Dock,  River  Conser- 
vancy, and  other  Invest- 
ments       


17,294,994    7 
8,100,945  17 


25,395,940    4    4 


4,077,882    6  11 


373,042    3    4 


1,130,000    0    0 


-Balance  carried  forward  to  1918 


182,932    0    2 
£119,863,364  18    4 


Lloyds  Bank  (France)  and  National  Provincial 
Bank  (France),  Ltd.,  12,000  Shares  of  £50 
each,  £20  paid 

Bills  Discounted,  Loans,  (to.,  including  Stock 
Exchange  Loans  under  Treasury  Minute  of 
31st  October,  1914       

Liability  of  Customers  for  Acceptances,  &c.,  as 
per  Contra  

Bank  Premises  in  London  and  Country 


42,162,960    2    4 
240,000    0    0 

49,256,957    9    2 

1,982,964    7    7 
824,542  14  11 

£119,863,364  18    4 


M.  O.  FITZGERALD,     ^ ^  D.  J.  H.  CUNNICK,       "l      Joint 

G.  F.  MALCOLMSON,     \   Directors.  FREDERICh.  KLEY,  V  General 

ROBERT  WIGRAM,  A.  G.  HOPEWELL,      ;  Managers. 

REPORT    OP    THE    AUDITORS    TO    THE    SHAREHOLDERS    OP    THE    NATIONAL     PROVINCIAL     BANK    OP     ENGLAND,     LTD. 

We  have  examined  the  above  Balance-sheet  with  the  Books  at  the  Head  Office  and  with  the  Returns  from  the  Branches.   We  have  satisfied  ourselves  as  to 

the  correctness  of  the  Cash  Balances,  and  have  verified  the  Investments  held  by  the  Bank  and  the  Securities  held  agamst  Money  at  Call  and  Short  NoUoa 

at  the  Head  Office.     We  have  obtained  all  the  information  and  explanations  we  have  required.    In  our  opmion  such  Balance-sheet  is  properly  drawn  op  ao 

as  to  exhibit  a  true  and  correct  view  of  the  state  of  the  Company's  affairs,  according  to  the  best  of  our  information  and  the  explanation  given  to  us  and    m* 

riiown  by  the  Books  and  Returns  of  the  Company.  NICHot  AS  ED  WN  WATERHOUSE.     }   ^»«'*<'"- 

Chartered  Accountants. 


21st  January,  1918. 


The  Bank  has  Branches  or  Agents  thronghont  the  United  Kingdom  and  Correspondents  in  all  parts  of  the  world. 
BRITISH,  COLONIAL  and  FOREIGN  Banking  and  EXCHANGE  business  transacted. 
Trusteesliips  and  Executorships  undertaken. 

Copies  of  the  Annual  Report  of  the  B»nk,  Lists  of  Branches,  Agents  and  Correspondents  may  bo  had  on  application  at  the  He»d  omce  ana  at  any  ol  lh» 
Bank's  Branches.  FRENCH     AUXII,IARY  :  .,.„„.^ 

LLOYDS   BANK   (FRANCE)    &   NATIONAL   PROVINCIAL   BANK    (FRANCE)    LIMITED. 

Head  Office:  60,  Lombard  Street,  London,  E.G.  3  (Temporary  Address). 
Offices  in  France:    Paris  (3,  Place  de  I'Op^ra),  Biarritz,  Bordeaux,  Havre  and  Nice. 


February  2,  1918. 


Zbc  investors'  TReview, 


135 


INDIAN   RAILWAYS. 


GROSS  TRAFFIC    FOR    WEEK. 


Week 

ending 


Amount 


In.  or  dec. 

on  last 

vear. 


GROSS  TRAFFIC  TO  DATE, 


^ssam  Bengal 

Bars! 

Bensal&N.-W.     ., 

Bengal  NagP'ir 

Bombay,  Haroda  .. 

Burma 

Delhi  Umballa 

Rast  Indian. . 

Gt. Indian  Penin.  .. 

LuckDOw-B^reilty. . 

Madras      and        S. 

Mahraiia  .. 
Nizara'sGd.  (Broad' 
,,        ,,     (Metre 
Roliilkund  and 

Kumaon  .. 
South  Indian 


Dec. 

1 

,, 

« 

.Nov. 

24 

>ea. 

8 

Jan. 

ig 

Oeo. 

1 

Jan. 

i<y 

,t 

ig 

„ 

ig 

Nov. 

17 

Dec. 

I 

Sov. 

24 

" 

24 

Dec. 

I 

S 

Rs. 

1,30,307 

!*>,  lOO 
3,65.620 

li.ia.ooo 
l6,l4,0"0 
4.34,871 
87,8oj 
21.49,000 
25,52,000 
2J,8l,IOO 

10,40  00 -1 

1,29,47s 

81,521 

49,020 
6.73.243 


Rs. 

—  3.276 

—  1,700 

—  88,445 
+  i,75,0(xi 
+     31.000 

—  36,671 

+  22,OiJ4 
+  2.45,0(  o 
+  1,98,400 
+  5.73  0.0 

+      59.S07 

—  499 

—  4,777 


11,625 
6.989 


Amount 


+  April  I.  t  October  i. 

JRAMWAV  AND  OMNIBUS.— HOME. 


Rs. 

11,16,15. 
5.77.' 00 

2S,f>2.2|0 

3.68.8t  5'S 
2, 18,.)?, 000 
35,08,1124 
14,(2,786 
3.44,!7.ooo 
.3. 4<. 57, SOD 
2,9i,i2,6ou 

81,30,000 
9,37,32J 
5,17.609 

3.55.0.t7 


In.  or  dec. 
on  last 
year. 


Rs. 

—  83,643 

—  r.57,rco 

—  5-27.633 
+  31.63.524 

—  IO,34.noo 

—  1.03.650 
+    1,72,841 

+  14,16.000 
+  24,80,403 
t  13,12,803 


3,97,422 

6.S,272 

32.995 

15,899 
3,62,399 


Dublin  Unliert 
Hastings  and  Dist.. 
Isle  of  Thanet 
Lancashire  United.. 
Provincial    .. 
Yorks.  (Wst.  Rdng.) 


f 

6,841 
1,004 
164 
2.449 
2.3'6 
2,409 


+ 

956 

+ 

171 

— 

104 

4- 

752 

+ 

250 

+ 

605 

£ 

17.847 
3,616 

2.2QO 
7.783 
32,291 

8,9'7 


*  From  Oct.  t. 


I  910 
96 
1.434 
1,846 
4,2.8 
1.871 


i  From  Jan.  i. 
TRAMWAY  4NU  OMNIBUS— FORfclON    AND   COLONIAL. 


» 


Alabama  Power    .. 

Aot;lo-ArgeiHiiie    .. 
Auckland  Electric. . 
Brazilian  Traction 
Brisbane  Elec.  Inv, 
British  Columbia  . . 
B.A.  Lacroze 
Burmah  Electric  . . 
Calcutta 
Cartliagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &T 

Hongkong    .. 
La  Plata 

Lima 

Madras  Electric    . . 
Manila  El^.ctiic... 
Mexico         ,, 
Rangoon 

Singapore  Electric 
Toronto 

United  of  Monte  V. 
Vera  Cruz    .. 
Winnipeg     ,. 


12,561 

4,605 

20,432 

37.736 

65.467 

•  215,256 

543S 

«I2,357 

*42S556 

34.025 

56,300 

»86,885 


£ 

+  24.747 
+  195 

+  8S0 

+  M535,ooo 
+  820 

+  »3i.7.'2 
<-  795 

—  Rs  6,327 
■I-       Rs.68o 

+  2,p2j 

—  1,052 
+  »388 
4-  169 
+  3,187 

-(-  Rs. 1,243 
+        4.667 

—  $108,609 
+  534 

«.6 

—  «8,75, 
¥  2,661 

—  $14,744 


c 

1,377  830 

209.415 

92,118 

M84131C00 

32s, 420 

*432,.64 

230,476 

log.ioS 

Rs.2c6,ii8 

49,566 

95.376 

1647,597 

48,963 

195.748 

R!'-37.736 

547,492 

$3,193,106 

54.751 

$529,661 

45.032. '75 

65,085 

520,700 

$748,976 


£ 

+    359.725 

+  10,  II  6 
+  7.832 

4-M6558000 

—  2, coo 
4-     $29,124 

—  419 
4-  Rs.1,483 
+    Rs-3.784 

+        19.776 

—  2,640 

—  $38,825 

1873 
4-  8,037 

4-   Ps.1,243 

7-  70,625 

—  $197,227 

4-  2,509 

+  $12,549 

+  $239,133 

+  5,3'7 

—  $327,782 


628  days.        •  From  Jan.  1.      !  Nett.       a  From  July 

FOREIGN   RAILWAYS. 


c  Two  weeks. 


Alcoyand  Gandta  . .    Jan.    26 

Antofagasta    (Chili) 

Arauco  , .        , . 

Argentine  N.E. 

Bilbao  R.  and  Canta 

Bolivar 

Brazil 

Brazil  Gt.  Southern 

B.  Ayres  &   Pacific 

Do.  Central     .. 

Do.  Gt.South'n 

Do,  Western 
Central  Argentine. . 
C.Ur'g'ayof  Mis  V. 

Do.   East'n  Ex. 

Do.Nnrth'nEi. 

Do.  West'n  Ex. 
Cordoba  Central  .. 
Costa  Rica   . 
Cuban  Central 
Dorada  Extension. . 
Egyptian  Delta     .. 
Entre  Rios  .. 
French  Sante  F^  . . 
Gt.  Soutli.  of  bpain 
Gt.West.  of  Brazil.. 
Havana  Central     . . 
Inter,  of  C.  Araer... 
La  Gualra  and  Car. 
Leopoldina  ., 
Midland  Uruguay . . 
Mogyana 

N.W.  of  Uruguay  . . 
Nitrate 

Paraguay  Central  . '. 
Paulista 

Peruvian  Corpn  !  ] 
Salvador 

State  of  Bahia  S.W. 
S.  Paulo  (braziiian) 
Sorocabana,. 

Taltal ; 

United  of  Havana.! 
West'n  of  Havana. . 
Zafra  and  Huelva.. 
*  Months,  t  From  Jan 


Ps. 


Deo. 
Jan. 
Oct. 
Dec. 
Oct. 
Aug. 
Jan. 
Dec. 
Jan. 


Dec. 
Jan. 
Dec. 

,1  20 
Jan.  26 
Aug. 
Jan.  12 
26 
.,  12 
Dec.   c 

Jan.    25 
Dec. 
Oct. 
Dec. 
Jan.    15 


Oct. 
Dec. 
Jan. 
Nov. 
Jan. 
Dec. 

Jan. 

Nov. 


27 


L 

7.50  > 
37.510 
14  500 
10,900 

3.911 

ia,ooo 

M4, 209,000 

Mis.38,300 

115,000 

30,817 

147,000 

63,000 

130,000 

21,005 

5739 

3.911 

2,667 

27,000 

2,011 

27,600 

8,200 

'1.595 

20,0^0 

132,000 

30.354 

21,300 

9.397 

20  75t 

6,500 

37.156 

15,106 

M2, 411,000 

$33,000 

34, 80 -J 

2,640 

M3, 475. 000 

81,101,090 

1f2,203 

M85,0OT 
37,726 
M2, 107,000 
29,108 
77,40: 
10  919 
10.538 


Ps. 


£ 

— Ps.  6,oco 
5,335 

+  2, GOO 

+  4,200 

1,426 

4-„  4,193 
[-M2o8,l7i 
h  M2,o8o 
I-  15,000 
I-  8,031 
I-  1,000 
f-  13,000 
f-  24,000 
I-  6,895 
-  400 

563 

^  749 

I-  705 

3,293 

h-         1,625 

300 
H  4,307 
K  6,4uo 
29,099 


-Ps59,8l3 

6,200 

856 

3,470 

750 

-      11,323 

1,520 

4-Mi25,i98 

+      t8,38S 

+        2.59^ 

4-  510 

4-  M245,626 

+  8110,248 

$36 

M45,ooo 

■   ./'''3'>5 

+  M224.2U(1 

4-       13.306 
22.577 
+        4,797 
403 


•     tFromJa'y  i.    c  Nett. 

COLONIAL  RAILWAYS. 


£ 

Ps.  31,500 

ioi,3L,o 

132.000 

544,400 

35,861 

67.132 

M  40607000 

^325,937 

2,277,030 

145.925 

2.969,705 

1,2:7,000 

2,801,200 

531,063 

142,377 

91.287 

62,819 

904,180 

69,176 

408,476 

106,900 

196,128 

409  300 

900,336 

Ps.  54211 

74,400 

218,119 

26o,5"'9 

87,000 

131.725 

83,506 

."Vll9427,ooo 

$159,682 

34,808 

84  940 

^27148,000 

S  6,083,270 

$453,029 

Ml, 02 1, 000 

144,183 

M  16,988 

150,436 

1,228,738 

221,341 

123.820 


—Ps. 14,570 

—  10,590 
4-  23,200 
4-  45,998 

—  10,946 
4  22,821 
+  M4574592 
+  M43,467 

—  306,000 

—  5.054 

—  314,549 

—  286,000 

—  478  600 
4  148,169 
+  8,095 
+  24,856 
+  5,436 
+  13,935 

—  50,592 
f-  8  ,567 
4-  7,200 
4-  40,357 
+  64,100 
4-  173.429 

—  Ps. 121254 

17.750 
38.731 
38,328 
5,500 
48,924 

10,009 
M25,272 
$13,092 

2,590 
8,750 

4M846,388 
+  S  582,778 

—  $4,815 

—  M66,ooo 
4-  43,309 
+  M1735205 
+  38  895 
4-  245.660 
+       48,999 

3.332 


6  15  days,    a  10  days. 


I 


lieira 

Canadian  Northern 
Canadian  Pacific  ,. 
Gt.Trk.  Main  Line 
Gr.  Trk.  Western. 
Detroit  G.  H.&M. 
GrTkPac  Prairie  Sc 
MasbonalanJ  .  .. 
Mid.  of  Westn.  Aus. 
Kew  Cape  Central.. 
Rhodesia 


Aug 

*c 

Jan. 

21 

,, 

2r 

„ 

21 

,, 

21 

„ 

21 

,, 

21 

aep. 

Nov 

Dec 

H 

Oct. 

*c 

*  Months. 


£ 

^54.914 

$607,800 

$2,324,000 

128,269 

26,753 

9,134 

20,0&3 
47,670 
S,206 
2,241 

99.687 


£ 

■  12,287 

■  $50,400 
$109,000 

■  41.150 

4.624 
1,078 

1,610 

9,630 

19/ 
443 
11,023 


£ 

706,175 

$23,62^,900 

$7,035,' 00 

446,561 
93,410 
31,408 
61,651 
47,670 
33,562 

91.594 
99,687 


1  July  J.         t  Jan.  1.       rPcom  Oct.  i. 


£ 

4.297 

$89,400 

$165, OJO 

67,205 

1.377 
360 
15.839 
9,630 
1,108 
14,600 
11,023 


MONTHLY   STATEMENTS. 


NEXT 

EARNINQS  FOR   IIOHTH. 

HBTT  BARNINaSTODATB. 

NAME 

Month 

Amount,    ^n.or  Dec 
on  last  year 

11 

Amount. 

Id.  01  Dea 
on  last  year 

Dels. 

Dols.      I 

DjIs 

Dois. 

Atchison  T.&S.Fi 

Nov. 

4,ioo,of  0 

—  1,062,000 

n 

—  1,488000 

Atlantic  Coast  Lint 
Baltimore  Sc  Ohio  .. 
Canadian  Northern 
Canadian  Pacific   . . 

Sep. 

757.000 

+     132,000 

9 

8,260.000 

Nov. 

i.gitjooo 

—  1,050,00c 

II 

28,797,000 

—  2,26o,Ol>J 

" 

iB,5S3,6oo 
5  258,000 

—  437,500 

—  306, '.00 

5 

3,2D9,8oo 

—  2,2Ji,5O0- 

Chesapeake  &  Ohio 

1,127.000 

—    182,000 

II 

12,860,000 

—  1,444. OfJO 

—  3,023  ooo 

Chicago  &  N.W.    .. 
Chicago  Burl.  &  Q. 
Chicago  G.W. 

Oct. 

2,747,000 

-    527.000 

10 

22,230,OO'J 

,, 

2,943,000 

—1,365,000 

10 

29,640,000 

-  1,925  000 

Nov. 

294,000 

—    159,000 

11 

3,4^7,000 

Chicago  Mil.  &  S.P. 

,, 

1,486,000 

—  1,847,000 

II 

21,134.000 

—  7.6ao,ooj 

Chicago,  Rock  I.&P. 

,, 

i,S35,ooo 

+      57.000 

II 

i6,46(,ooo 

—  2,53t,oo.j 

Colorado  &8outherii 

Oct. 

536,000 

—    116  000 

10 

4  875  000 

+     603,00^ 

,, 

89.4G5 

—      56.433 

4 

671,275 

—     180,122: 

Delaware*  Hud.  .. 

,, 

48^,000 

—    246,000 

10 

—  1,130,00c- 

Denver  &  Rio  Gran. 

Mov. 

572,030 

—    420,000 

II 

7,152,000 

—  i,539.co>- 

,, 

691,000 

—    656,000 

II 

10,031,000 

—  7,125,0  X) 

Gr.Tr.  Main  Line.. 

,, 

mi>,20O 

—  ;Cl28,600 

II 

^i,9')7,300 

—  f  627,9 10 

Grand  Trunk  Westn 

J, 

6^15,650 

—     ^1,950 

II 

iS5,A5o 

—  £36:, 400 

DeiroitG.H.&Mil.. 
Gt.  Northern 

,, 

6  {'61,700 

—      /,  I.IoO 

II 

£67,700 

—    £9^.9^0 

,, 

3.371.000 

—  61)6,000 

11 

21,70^,000 

—  2,747.000 

Illinois  Central 

,, 

1,466  000 

—    409,000 

II 

17.53^.000 

-f-  2,59^.  'OO 

Kansas  City  Southu. 

,, 

372,000 

—       2,000 

II 

4,128,000 

+        581, OOO' 

Lehigh  Valley 

Oct. 

921.000 

—   449.000 

10 

10,483,000 

—  1,657,00a 

Louisville  &Nashvl. 

Nov. 

1,296,000 

—    178.000 

11 

i6,9tg,ooo 

—     83'S,ooo- 

Minn.  S.P.  (Soo)S  .. 

,, 

496,000 

—   276,000 

II 

4,gid,ooo 

—  2,736,'.oO' 

Miss.  K.  &  Texas  . 

Oct. 

926,000 

—    17J.000 

10 

6,429,000 

+■  2,174,000 

Missouri  Pacific   . . 

ij 

3,212,000 

+  1,112,000 

4 

7735,000 

+  2,24t,3'W 

New  York  Cent. «iH. 

,, 

5,662.000 

—      15,000 

10 

42,110,000 

—11393,000' 

N.Y.  N.Haven&H. 

,, 

1,375,000 

—    186,000 

10 

18,128.000 

—  1,057.00^ 

New  YorkOnt.&  W. 

Nov. 

—     27,000 

11 

2,117,000 

_        7I,':oO 

Norfolk  &  Western. 

1,796,000 

—      15,000 

5 

18,372.000 

—  3,390.0:0 

Northern  Pacific   . . 

I, 

1,428,000 

—2,122,000 

II 

26,039,000 

—  2,278,000' 

Pennsylvania    Easi 

and  West  Lines.. 

,, 

5,338,000 

— 3,18 1, 000 

II 

86,440,000 

—  16400,000 

Phil,  and  Reading  .. 

,, 

1,064,212 

—1,199,202 

II 

14,876,712 

—  6,626,325 

577.033 
11875.000 

t-        5326 
-t-    133,000 

9,806,000 
7,264,000 

-r      212,860 

bt.  Louis  &  San  F. . 

Oct. 

4 

+  1,447.000 

Seaboard  Air  Line.. 

J, 

7J4.000 

+      61,000 

10 

6,ii8,ooo 

+      304,000 

Southern 

Nov. 

2,471,000 

+     109,000 

^i 

1 1.795.00a 

+  I, 857.000 

Southern  Pacifio    . . 

J, 

5,igo,aoo 

—    258,000 

11 

56,301,000 

+  8,036,000 

Union  Pacific 

3,961,000 

—    668,000 

11 

39,694,000 

—  2,312,000 

Wabash       

1,029.000 

—    255.000 

II 

11,298,000 

—     42 1 ,000 

§  Includes  Wisconsin  Central,    ♦  Gross  earnings.    +  Surplus,    fc  Deficit. 


Ansvt^ers  to  Conrespondents. 


♦,•  A  Key  to  these  Answers  will  be  posted  early 
each  week  for  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  tor  six  months,  or 
Ss.  9d.  tor  three  months. 

Deposits  against  future  queries  may  be  lodged 
with  the  Publisher. 

Flaur. — Expense  of  letter  or  wire  unnecessary.  Property  good 
and  doing  well.     Hold  on  for  the  present. 

Drudge. — No ;  not  No.  i  company  sh.ares,  at  any  rate.  The 
second  company  is  quite  another  affair ;  but  even  it  may  yet 
see  better  days.. 

Algiers. — We  hardly  think  so.  They  are  too  dear,  though. 
good  enough. 

B.  B.  D. — Beitter  wait.    We  see  nothing  to  go  for  at  present. 

W.  E.  F. — ^(i)  Doubtful;  may  go  lower.  (2)  Hold.  (3)  Good 
to  hold  also.  (4)  Excellenit  and  worth  keeping.  (5)  These  also 
should  be  worth  sticking  to.  (6)  Keep  likewise.  Prices  may 
recede  a  little  further,  but  the  properties  are  all  sound. 

W.  S.  G. — Hold  a  Ettle  longer,  as  they  seem  likely  to  im- 
prove further. 

M.  D.  C. — (i)  Quite  a  good  exchange;  1927  issue.  (2)  Per- 
fectly good  ;  dividends  paid  free  of  tax,  which  accounts  for  the 
rather  full  price. 

D.  W.  A. — (i)  It  is  doing  well,  and  we  see  no  objection  to  a 
purchase  as  a  reasonaihle  speculative  investment.  After  the 
war  the  company's  business  seems  likely  to  expand.  (2)  Also 
a  fair  purchase,  alth,ough  there  is  not,  perhaps,  much  scope  for 
any  great  rise  from  the  present  level. 

Cahir. — All  are  good,  but  as  an  investment  the  third  on  your 
list  gives  the  best  yield. 

N.  F.  J.. — Both  may  improve,  but  we  think  it  would  be  pru- 
dent to  take  your  profit  in  the  second  stock  and  keep  the  first. 

J.  R.  S. — ^It  is  difficult  to  say  how  the  company  is  progressing 
under  existing  conditions.  We  cannot  advise  purchasing  just 
now. 


NOTICE. 

IMPERIAL    JAPANESE  GOVERNMENT   4^    PER 
CENT.  LOAN,  FIRST  SERIES. 

NOTICE  IS  HEREBY  GIVEN  that  the  COUPONS  due 
15th  February,  1918,  will  be  paid  on  and  after  that  date  (Saturdays 
excepted)  between  the  hours  of  11  and  3,  by  The  Yokohama 
Specie  Bank,  Ltd.,  from  whom  lists  may  be  obtained. 

Coupons  must  be  left  three  clear  days  for  examination  prior 
to  payment. 

For  The  Yokohama  Specie  Bank,   Ltd., 
K.  Tatsumi, 
7,  Bishopsgate,  London.  E.G.  2.  Manager. 

January  31st,  1918. 


136 


Ghe  3nvestoi8'  IReview. 


February  2,  jgiS. 


THE  LONDON  CITY  AND  MIDLAND  BANK 


ESTABLISHED    1836. 


LIMITED. 


Subscribed  Capital,  £24,906,432  :  0 :  0  Paid-up  Capital,  £5,188,840  :  0  :  0 

Reserve  Fund,  £4,342,826  :  0  :  0 


DIRECTORS. 


Sir   EDWARD  H.    HOLDEN,    Bart.,  Chairman  and   Managing  Director. 
WILLIAM  GRAHAM   BRADSHAW,   Esq.,   London,  Deputy-Chairman. 


Thk  Right  Hon.  LORD  AIREDALE,  Leeds. 
Sl«  PERCY  ELLY  BATES,  Bart.,  Liverpool. 
ROBERT  CLOVER  BEAZLEY,   Esq.,  Liverpool. 
Thk  RioHT  Hon. LORD  CARNOCK,G.C.B.,London. 
DAVID  DAVIES.  Esq.,  M.P.,  Llandinam. 
FRANK  DUDLEY  DOCKER,  Esq.,  C.B., 
Birmingham. 


FREDERICK  HYNDE  FOX,   Esq.,   Liverpool. 
H.   SIMPSON  GEE,   Esq.,   Leicester. 
JOHN  GLASBROOK,  Esq.,  Swansea. 
ARTHUR  T.   KEF.N,   Esq..  Birmingham. 
The  Right  Hon.  REGINALD  McKENNA,  M.P., 

London. 
FREDERICK     WILLIAM     NASH,     Esq., 

Birmingham. 


The  Right  Hon.  LORD  PIRRIE,  K.P.,  Loadon. 
Sir  THOMAS  ROYDEN,   Bart.,  Liverpool. 
The    Right    Hon.     Sir     GUY     FLEETWOOD 

WILSON,      K.C.B.,      K.C.MG.,      G.C.I. E., 

London. 

WILLIAM      FlTifTHOMAS       WYLEY,      E«q., 
Coventry. 


HEAD  OFFICE  :    5,  THREADNEEDLE   STREET,  LONDON,  E.C.2. 

Joint  General  Managers;    J.  M.  MADDERS,  S.  B.  MURRAY,  F.  HYDE,  E.  W.  WOOLLEY. 


LIABILITIES  AND  ASSETS,  31st  December,  1917. 


To  Cupttal  Paid  up,  viz. :    £2  los.  od.  per  Share  on  2,075,536 

Shares  of  jfia  each  5,188,840    o  o 

„  Reserve  Fund  4,342,826    o  o 

„  Dividend  payable  on  ist  February,  1918  350,24614  o 

-,,  Balance  ot  Profit  and  Loss  Account  as  below 733,785    5  8 

10,615,697  ig  8 

,,  Current,  Deposit  and  other  Accounts 220,551,768    9  5 

.,,  Acceptances  on  Account  of  Customers  8,826,86517  6 


£239,994,332    6    7 


£       s.    d. 
By  Cash  in  hand  Oncluding  Gold  Coin  ;^7,ooo,ooo)  and  Cash 

at  Bank  of  England 44,110353  13  10 

„  Money  at  Call  and  at  Short  Notice 31,003560    9    2 

,,  Investments: 
War  Loans,  at  cost  (of  which  £40', 418  los.  is  lodged  for 
Public  and  other  Accounts)  and  other  British  Govern- 
ment Securities  33.116,534  13    6 

Stocks  Guaranteed    by  the    British  Government,   India 

Stocks  and  Indian  Railway  Debentures 181,769  10    0 

British  Railway  Debenture  and  Preference  Stocks,  British 

Corporation  Stocks 1,774,673    4    2 

Colonial  and  Foreign  Government  Stocks  and  Bonds  660,35218    o 

Sundry  Investments  521,463    5  10 

,,  Bills  of  Exchange 35.052,991  17  10 

146. 421. 719  12    4 

,,  Advances  on  Current  and  other  Accounts 68,510,358    1    9 

,,  Advances  on  War  Loans. .  ..        12,645.539    9    o 

,,  Liabilities  of  Customers  for  Acceptances 8,826,865  I7    6 

„  Bank  Premises  at  Head  Office  and  Branches  ..         ..  2,837,210    6    0 

,,  Belfast  Bank  Shares; — 

49,683  f  12  los.  Old  Shares  £2  los.  paid 
148,204^12  los.  New  Shares  £2  10s.  paid 

Cost £1,225,908    o    o 

/>«5s  part  Premium  on  Shares  issued..      473,269    o    o 

752,'J39    o    0 

£239,994,332    6    7 


Dr. 


PROFIT  AND  LOSS  ACCOUNT  for  the  year  ending  31st  December,  1917. 


Cr. 


To  Interim  Dividend  at  18  per  cent,  per  annum  to  Jtfne  30th, 
1917,  less  Income  Tax 

„  Dividend  payable  on  ist  February,  1918,  at  18  per  cent, 
per  annum,  less  Income  Tax  

„  Reserve  Fund  for  Contingencies         

I,  Salaries  and  Bonus  to  Stafif  serving  with  His  Majesty's 
Forces  and  Bonus  to  other  Members  of  the  Stan 

„  Balance  carried  forward  to  next  accotmt 


£ 

s. 

d. 

322,703 

9 

11 

550,246 

Sco.oco 

14 
0 

0 
0 

304.518 

733,785_ 

£2,211,254 

19 
5 
8 

3 
8 
10 

By  Balance  from  last  Account        

,,  Net  profits  for  the  year  ending  31st  December,  1917, 
after  providing  for  all  Bad  and  Doubtful  Debts  . . 


£     s.  d. 
»43.538    5  »o 

i.967,7i«    3    o 


£2,211,254    8  10 


EDWARD  H.  HOLDEN,  Chairman  and  Managing  Director. 
W.  G.  BRADSHAW,  Deputy-Chairman. 


DAVID   DAVIES,  V  r«»o.„,c 
CARNOCK.  I  I>««»ors. 


CARNOCK, 


REPORT    OP    THE    AUDITORS    TO    THE    SHAREHOLDERS    OF    THE    LONDON   CITY  Bl  MIDLAND  BANK,  LIMITED. 

In  accordance  with  the  provisions  of  Sub-section  2  of  Section  113  of  the  Companies  (Consolidation)  Act,  1908,  we  report  as  follows : — 

We  have  examined  the  above  Balance  Sheet  in  detail  with  the  Books  at  Head  Office  and  with  the  certitied  Returns  from  the  Branches.  We  have  satisfied 
ourselves  as  to  the  correctness  of  the  Cash  Balances  and  the  Bills  of  Exchange  and  have  verified  the  correctness  of  the  Money  at  Call  and  Short  Notice.  We 
have  also  verified  the  Securities  representing  the  Investments  of  the  Bank,  and  having  obtained  all  the  information  and  explanations  we  have  required,  we  are 
-of  opinion  that  such  Balance  Sheet  is  properly  drawn  up  so  as  to  exhibit  a  true  and  correct  view  of  the  state  of  the  Company's  affairs  according  to  the  best  of 
our  information  and  the  explanations  given  to  us  and  as  shown  by  the  books  of  the  Company. 


Lohdon,  nfh  January,  1918. 


WHINNEY,  SMITH  &  WHINNEY,  Chartered  Accountants,   Auditon. 


THIS   BANK  IS  THE  PROPRIETOR  OF  THE  BELFAST  BANKING  COMPANY,  LIMITED. 


PEiated  by  the  St.  Clements  Press,  Ltd.,  Portugal  Street,  Kingtway,  London,  W.C,  for  the  Proprietor  of  The  Investors*  Review,  and  Published 
by  The  Pkopristor,  Norfolk  Houfe,  Nortolk. Street,  Strand,  W.C.  2. — February  2,  1918.  (N  1997 


XLbc 


Jnveetore'  IRevfew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 

^«'"^^';,t!1"J«'^^^^       ["'&%?•]       SATURDAY.  FEB.  9,  1918. 


NEW  SERIES. 


[Price  6d. 


CONTENTS. 


Passing  Events : — National  War  Bond  Sales  —  Revenue  — 
Baring  Bros.  —  The  Late  Sir  William  Wedderburn  — 
Home  and  Colonial  Stores  —  Railways  :  London  Brighton 
and  South  Coast  —  Hull  and  Barnsley  —  Lancashire  and 
Yorkshire  —  Metropolitan  —  South  Metropolitan  Gas  — 
British  Manufacturers'  Corporation  —  Atmospheric 
Nitrate  —  West  Canadian  Timber  —  Lister  —  Tehidy 
Estate  —  Linoleum  Trade  (pp.  139-42). 

Leading  Articles: — The  Banking  Year  and  Points  from  Bank 
Chairmen's  Speeches  —  Shipping  Control  —  Bank 
Fusions,  Their  Risks  and  Advantages  —  Russia  Devoured 
by  the  Vermin  "  Secret  Police  "  of  the  Vanished 
Tsardom  —  By-the-Way  War  Notes  (pp.   142-7). 

Insurance  News  : — National  Provident  —  Century  —  Clergy 
Mutual  and  London  Life  Fusion  —  Essex  Union  (p.   147). 

Money  and  Credit  Notes  :— Tightening  Credit  —  Bank  Return 
—  Bank  "Jibs"  at  Temporary  Government  Borrowing  — 
Government  Annuity  Rates  to  be  Revised  —  Expiry  of 
Borrowing  on  3J  per  cent.  Loan  —  Government  Stock 
Transfer  Facilities  —  Foreign  Exchange  Movements  — 
New  South  Wales  Loan  —  Silver  (pp.  148-51). 

The  Week's  Stock  Markets  (pp.  151-2). 
London  Produce  Markets  (pp.   152-3). 


American  Business  Notes  : — Government  Control  of  Railways  — 
Mr.  Otto  Kahn  on  Germany's  War  Methods  —  Coal 
Control  —  Money  in  the  Banks  —  Mr.  Daniels  on  Sub- 
marines (pp.   153-4). 

Tea,  Oil,  and  Rubber  : — Rubber  Production  and  Rubber  Market 
—  Tea  Brokers'  Association  —  British  Burmah  Petroleum 
Co.  (p.  156). 

Mining  News :— Rhodesian  Mineral  Output  —  Springs  Mines  — 
Brakpan  —  Alaska  Goldfields  —  Falcon  Mines  (p.   157). 

What  Balance  Sheets  Tell :— Northamptonshire  Union  Bank  — 
Yorkshire  Penny  Bank  —  Bristol  Brewery  Georges  &  Co. 
(p.   157), 

Company  Meetings :— West  Yorkshire  Bank  —  London  and 
Liverpool  Bank  of  Commerce  —  British  Burmah  Petroleum 
(pp.   157-9). 

Public  Income  and  Expenditure  (p.   154). 

Notes  on   Books  (p.  154). 

Dividends  Announced  (p.  155). 

Answers  to  Correspondents  (p.   155). 

Oilfields  Production  (p.   155). 

The  Week  in  Mines  (p.   156).        . 

Traffic  Returns  (p.   160). 


BANK  OF  NEW  SOUTH  WALES 


Eitabliihed  U17. 

Paid  up  Capital  ... 
Reserve  Fund  ... 
Reserve    Liability 

Proprietors     3,904,860 

£10,684,720 


of 


£3,904,860 
2,875,000 


Head  OUee : 


;  STDHEY,  HEW  SOUTH  WALES. 
London  Directors : 

Sir  Frederick  Green,  Chairman. 

H.  L.  M.Tritton,  Esq.  Walter  S.  M.  Burns,  Esq. 

David  George,  Manager.  J,  s.  Campbell,  Secretary. 

Halkbrstone  Meldruy,  David  Grddie 

Asiiilant  Manager.  Accountant. 

The  Bank  has  S31  Branches  and  AgonoleB  in  the  Australian  States, 

New  Zealand,  Fiji,  Papua  (New  Guinea),  and  London,  and  Agents  and 

Correspondents  all  over  the  World,  on  whom  the  London  Office  grants 

Circular  Letters  of  Credit  and  Circular  Notes.    Also  issues  DrafU  on 

demand.     Makes  Mail  and  Cable  Transfers.     Negotiates  and  Cellects 

Bills   01   Exchange.      Receives   Deposits  for  Fixed   Periods  on  terms 

which  may  be  known  on  application,  and  transacts  every  description  of 

Australian  Banking  business. 

London  Office :  29,  THREADNEEDIiE  STREBT,  B.C.  2. 


.^  BANK    OF    NEW    ZEALAND. 

■^K  {Incorporated  July  2gth,  1861.) 

■■     ,        BANKERS  TO  THE  NEW  ZEALAND  GOVERNMENT, 

■H     London  Office:  i,  Queen  Victoria  Street,  London,  E.C.4. 

■P  AUTHORISED  CAPITAL        ^5,300,000 

T  „  SUBSCRIBED  CAPITAL. 

fI°."r,P^^S°"'-  Guaranteed  Stock         . .  /■„„  -ro 

•■  B  ■■  Pr'efer'e'^ce  Ih  ""  •'""'^f  '°  ^ew  Zealand"  GoveVnmem        ! !       s^.C 

Ordinary  Shires  "  '"""^  '°  '''"  ^^^'^"'^  Government        . .      Isoiooo 

1.500.000 

Reserve  Fund  and  Undivided  Profits  £^.^7|.e>W 

Negotiates  and  collects  Bills  of  Exchange. i  .=^40,595 

m^tS-i's^ate^Tt'eTe^a^ph!?  'tJa^Js^..^^^'-^'  ^-'"'-'  ^'>'  -<>  ^amo..    Re- 
__^ ALEXANDER  KAY.  Maoager. 

The  union  BANK  of  AUSTRALIA 

Established  18^7.  1  lu  ■.«->?.  r  „- 

^'  LIMITED.  Incorporated  1880. 

D  ij       r.     ■    .   *""'°"s«d  ^"^i  Issued  Capital,  £6,000,000. 

MEArtnee.^c  Total  Capital  and  Reserves!  .'.■■■.■.■.■.■;    £S^^ 

n^ARTf      °^'."        "        ^^'CORNHILL,  LONDON.   E.r,.  3. 

St^.fs\7dl:L^nir^fNe°Sl'ellar''=  ^""''■^^  ""-«'^-'  "-  ^-""« 
rELEGRAPHIC  REMITTANCES  are  also  made. 
niriS:?!r°cP"^'*"'"=''  °'  **°' f"''  Collection. 
ton  applicatill.  "*  ""'"^ '"  '^"''  P'"°'^'  °" '""'  "^'"^  "^y  ^'  ascertained 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  0/  the   Imperial 
Japanese  Government,  1899. 

HEAD  OFFICE      ~ 


TAIPEH,   FORMOSA. 


BRANCHES— Tokio,  Kobe,  Osaka,  Araoy,  Canton,  Foochow,   Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.G.  2. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1S62. 

Authorised  Capital  £4,000  000 

Paid-up  Capital l.SOOloOO 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE. —  Buenos  Aires,  Rosario.  Mendoza,  Concordia,  Bahia 
Blanca,  Cordoba.  Tucuinan,  Parana,  Barracas  {Buenos  Aires),  Once 
(Buenos  Aires),  Boca  (Buenos  Aires),  Calle  Sanla  Fi  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires).  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agency),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro,  Sao  Paulo,  Santos,  Per- 
nambuco.  Para,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  Hal^vy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 

advanced  upon  or  sent  for  collection.— 7,  Princes  Street,  E.C.  2. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

Registered  in  Japan.) 


ESTABLISHED    1880. 


Subscribed  Capital        Yen  48«000«000 

Capital  Paid  Up Yen  36,000,000 

Reserve  Fund         Yen  22,100  000 


Bombay. 

Calcutta. 

Changchun. 

Dairen  (Dalny). 

Fengtien  (Mukden). 

Hankow. 

Harbin. 


Head  Office:  YOKOHAMA. 
Branches  and  Agencies  at 
New  York. 


Honolulu 

HoDg  Kong. 

Kobe. 

Los  Angeles, 

Lyons, 

Nagasaki. 

Newchang, 


Osaka. 

Peking, 
Rangoon. 
San  Francisco. 

Seattle. 
Shanghai. 


Singapore. 

b^dnejr. 

Tieniwfi. 

Tokyo. 

Tsinanfu, 

Tsingtau. 


The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  transacts  General  BankiHg  Business. 

Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  applicatica. 
Londoa  OflBce :   7.  BISHOPSGATK.  B.C.  3. 

K.  TATSI;M[,  Maoa£ar 


'38 


Zbc  Jnvestors'  1Rev>te\v. 


February  9,  1918. 


LONDON  COUNTY  &  WESTMINSTER  BANK  LIMITED. 

ESTABLISHED    IN    1836. 

AUTHORISED  CAPITAL  £17,000,000,  in  850,000  Shares  of  £20  each. 

Reserve  exceeds        -        -        -        £4,700,000. 

Chairman:  WALTER  LEAF.  Esq. Deputy  Chairman:    Sir  MONTAGUE  TURNER. 

HEAD    OFFICE  :     41,    LOTHBURY,    E.G.  2. 

Joint  General  Managers:     F.  J.   BARTHORPE.  J.  W.   BUCKHURST. 

Foreign  Branch  Office :    82,  Cornhill,  E.G.  3. 

The  Bank  is  represented  by  Branches  or  Agents  in  all  the  Principal  Cities  and 

Towns  of  the  United  Kingdom  and  has  Correspondents  throughout  the  World. 

Spanish  Branches  :— Barcelona  :  Paseo  dc  Gracia  8  &  10.    Madrid  :    Calle  de  Alcala  43. 

Affiliated  in  Ireland :    Ulster  Bank  Limited. 

Affiliated  in  France  :    London  Gounty  and  Westminster  Bank  (Paris)  Limited. 

Paris:  22,  Place  Vendome.       Bordeaux:    22/21,  Cours  de  I'lntendance. 

EVERY  DESCRIPTION  OF  BRITISH  AND  FOREIGN  BANKING  BUSINESS  TRANSACTED 

EXECUTOR  AND  TRUSTEE  DUTIES  UNDERTAKEN. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office :  15,  Gracechurch  Street,  London,  E.C.  3. 


Capital  Authorised 
Capital  Issued 
Capital  Paid  Up  ... 
Reierve  Fund 


£1,500,000 

1,125,000 

562,500 

600,000 


Brunches  t 

INDIA.   BURMAH.   CEYLON.    STRAITS    SETTLEMENTS 

CHINA.    AND    PORT^LOUIS.    MAURITIUS. 

The  Bank  buys  and  sells  Bills  of  Exchange,   issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  East,  on  torms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  s  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  ouprent  aooounta  interest  is  allowed  at  2  percent,  per  annum  on 

daily  balances. 


ENGLISH,    SCOTTISH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

M[eai,d  Offloe— 38i  X^oxnba.Pd  S«pee*>  ES.C.  3. 

Subscribed  Capital £i|078|875    o    o 

Paid-up  Capital 539.43710    o 

Further  Liability  ot  Proprietors     ..        ..  539.43710    o 

Reserve  Fund 500,000    0    0 

LETTERS  OF  CREDIT  and  DRAFTS  on  the  Branches  and  Agenoies  of 
the  Bank  in  Australia  can  be  obtained  at  the  Head  Of&ce,  or  through  the  Agents 
of  the  Bank,  in  the  chief  Provincial  towns  tbrouebout  the  United  Kingdom. 
REMITTANCES  niide  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOTIATED  or  forwarded  for  COLLECTION. 
BANKING  and  EXCHANGE  Business  of  every  description  transacted  with 
Australia. 

E,  M.  lANION   Manager. 


THE   BANK  OF  ADELAIDE. 

(Incorporated  by  Act  of  Parliament,  1S65.) 
Authorised  Capital         -    £1.000,000.  Subscribed  Capital    -    -    £625,000 

Paid-up  Capital        £500,000 

Reserve  Fund  54.0,000 

£1,040,000 

Unoalled  Capital 125,000 

Reserve  Liability  of  Shareholders       625i000 

fi.790»«>o 

London  Offioe— 11,  Leadenhall  Street,  E.C.  3. 

BILLS  on  Australasia  purchased  or  collected. 

DRAFTS  issued  and  REMITTANCES  cabled. 

DEPOSITS  reoeivedfor  fixed  periods  at  rates  to  be  ascertained  on  application, 

PERCY  ARNOLD  Manacer. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 


Head  Office— 71   Old  Bioad  Street.  E.C. 


Subscribed  Capital         

Paid  up  Capital 

Reserve  Fund  and  Undivided  Profits 
Reserve  Liability  of  Proprietors 


ei,278.747  10 

669,685  O 

375,680  11 

606,962  10 


REMITTANCES  made  bv  CABLE. 

DRAFTS,   LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 

Branches  and  Agents. 
BILLS  on  Australasia  NEGOTIATED  or  sent  for  collection. 
DEPOSITS  RECEIVED  for  periods  and  at  rates  which  may  be  ascertained 

oa  apiikication,  and   Banking    Business   of   every  desortptiGO    conduotcd 

witk  AwttaU*. 


ROYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  1727. 

PAID-UP  CAPITAL £2,000,000 

REST  AND  UNDIViDBD   PROFITS  914,968 

DBPOSITS 26,177,866 

Head   Office:    ST.    ANDREW   SQUARE,  EDINBURGH. 
Cashier  and  General  Manager,  A.  K.  Wright.         Secretary,  J.  B.  Adshkao. 

London    Office:    3,    BISHOPSGATE.  E.G.  2. 

William  Wallace,  Manager.  Alex.  Dick,  Deputy-Manager. 

Glasgow  Office:     EXCHANGE  SQUARE. 

A.  Dennistoun,  Agent.  Thomas  Lillie,  Sub-Agent 

167  Branches  tliroutftaout  Scotland. 

Banking  Business  of  every  description  transacted.  Accounts  opened  and  Ageney 
business  undertaken  for  Foreign  ^nd  Colonial  Banks  and  other  financial  estab- 
lishments. Drafts,  Circular  \otes,  and  Letters  of  CreSit  issued  —  a%ailable 
throughout  the  world.  Cable  transfers  are  also  made.  Deposits  received  at 
interest  repayable  at  oail  or  at  notice.    Corretpoodeoce  invited. 


THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 
Pald-np  Capital    . .    £3S0,000    0    0     25,000  Shares  of  f  10  each. 
Heierve  Funcl  . .     . .  £700,600    0    0  |   Beserv*  ProBts    . .   £IS,08S 

BeBervea  Uabllltv  of  Shareholders  £280,000. 

DiTiift^  issued,  Kemttunees  cabled.  Bills  negotiated   or  collected,     Dcpositt 

roeeiTed  lor  fixed  penodii  ai  rates  to  De  ascertatned  on  application,  and  all 

banking  and  exchange  basiness  coanecied  with  Western  Australia  conducted 

Ibroagli  the  London  ARemts .  The  Bank  of  Adelaide,  11.  Leadeohall  St.,  E.0.>. 


4 


INSURANCE. 


DON'T    CASH   YOUR 
VICTORY  LOAN  DIVIDEND. 

£2  10s.  Dividend  will  double  your 
holding  of  War  Stock  and  produce 
£100  new  money  for  the  War. 

Write  for  particulars  to  Prudential 
Assurance  Co..  Ltd.,  142,  Holborn 
Bars,  E.C.I,  or  to  any  of  its  Agents. 


LIFE  &  PROPERTY 
ASSURANCE  GO,,  LTD. 


NATIONAL  BENEFIT 

ASSETS    EXCEED        -  dSI.OOO.OOO. 

Attractive   LIFE,    FIRE,  ACCIDENT  it  MARINE  Poliolaa. 

NATIONAL    HOUSE.    Newfjate    Street.    LONDON.    E.C.  I. 

Managing  Director:   J.  Fhancis,  J. P.,  F.S.S. 


tCbe  5nv>eetore"  IReview, 


Vol.  XLI. 

law  Berlu. 


-No.  1,049. 


SATURDAY,  FEB.  9,  1918. 


("'ffiap".')  Price  6d. 


PUBLISHER'S    NOTICES 

Ibe  JnreStOrS'  IReVieW  is  a  subscription  Joumal.andwiU 
De  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 

the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning, 

on  the  following  terms  : — 

eoe  Year,  £1  5s.  Od,    Six  Months,  12s.  6d.    Three  Months,  68.  6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year,  £1  8s.  Od.    Six  Months,  Us.  Od.    Three  Months,  7s.  Od. 

Short  of  Three  months  thf   Price  is  6Jd.  per  Copy  Inland,  and 

7d.  Aoroad,  Post  Free. 

Cloth  cases  for  binding  the  Half  Yearly  Volumes  price  la.  6d., 

postage  4d.  extra.    Bound  Volumes  i5s.  6d.,  or  16g.  3d.  postfree. 

Cheques  and  P.O.  Drafts  should  be  made  payable  to 

"Investors'  Review," 

Norfolk  House,  Norfolk  Street, 
London,  W.C. 

Telephone  No. :  Telegraphic  Address  : 

Gerrard9132.  "  Unveiling,  London." 

Tbe  Editor  caaaot  uaaertake  to  return  rejected  com- 
munications. 

Letters  from  correspondents  must,  in  every  case,  be 
authenticated  by  tbe  name  and  address  of  tbe  writer, 

Tbe  Editor  desires  it  to  b6  understood  that  a  charge  is 
made  tor  tbe  insertion  of  reports  under  tbe  heading  of 
Company  Meetings,  and  they  cannot  accept  responsibility 
for  statements  made  therein. 


ANSWERS    TO    QUERIES. 

One  Reply    to   One   Question  —  One    Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  kept,  as  securities  cannot  be  named  with  comments  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issue 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  in  advance,  a 
Key  to  the  previous  week's  replies  will  be  sent  early  in  the 
following  week. 

Deposits  of  "  Query  Money  "  may  be  made  in  advance,  and  will 
be  acknowledged  in  the  "Answers"  column,  Notice  of 
exhaustion  will  also  be  given  there. 

Telegrams  advising  about  new  securities  cost  Half-a* 
Crown  each,  plus  cost  of  the  telegram. 

Private  Letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
ShiiilngSi  but  for  this  three  questions  will  be  answered  if 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Half-a-Grovirn  per  question. 

Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  on  terms  varying  according  to  the  time 
taken. 

Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
Orie  Guinea)  each  list  different. 


Passing   Events. 


■ 


Again  sales  of  National  War  Bonds  fell  off  last  week. 
Ihe  applications  numbered  15,500,  a  decrease  of  4,897 
on  the  numbers  of  the  previous  week.  In  money  the 
decline  was  ;^4, 599,000  at  ;£a9,498,ooo.  This,  as  we 
have  said  before,  is  only  what  was  to  be  expected  at  the 
present  time.  In  a  sense,  the  diminished  investing 
power  shown  may  be  regarded  as  an  example 
of  "capital  conscription."  What  is  paid  as 
revenue  cannot  also  be  invested  in  Government 
debt.  Taxpayers  are  being  pressed  to  pay  up 
within  the  current  fiscal  year,  and  in  yielding 
to  the  demand  they,  for  the  time  being,  are  im- 
poverished, have,  therefore,  less  to  put  away.  No 
doubt  the  dividends  now  beginning  to  be  distributed  on 
bank  shares,  railway  stocks,  and  other  securities  will 
again  fill  the  reservoir,  and  when  they  do,  we  may  ex- 
pect these  sales  to  increase  once  more.  In  saying  this, 
however,  we  are  only  emphasising  the  fact  that  the 
wage-earner,  the  man  or  woman  whose  money  comes 
week  by  week,  and  has  to  be  spent  as  it  comes,  or  most 
of  it,  is  not  yet  within  the  suction  of  the  nation's  neces- 
sities. On  the  contrary,  the  great  mass  of  people  are 
intent  upon  getting  money  out  of  the  Government  rather 
than  in  economising  and  devoting  their  means,  all  of 
it  that  can  be  spared,  to  help  in  sustaining  this  life-and- 
death  conflict.  In  the  week  ended  Saturday,  January 
26,  which  is  always  a  week  earlier  than  the  return  re- 
lating to  the  Bank  of  England  issue,  the  Post  Office 
^"W  ^1,049,000  worth  of  National  War  Bonds  to 
40,200  applicants,  or  5,000  more  than  in  the  previous 
week.  The  money  was,  however,  ;^  18,000  less.  This 
l)rings  up  the  total  number  of  applications  at  the  Post 
Office  to  644,600,  and  the  total  amount  of  money  re- 
ceived ;^i5,677,ooo.  War  Savings  certificates  continue 
to  go  off  very  well,  and  as  the  Government  cannot  ap- 
parently touch  the  bonus  or  premium  bond — the  United 
States  is  said  to  look  on  that  method  of  borrowing  as 
derogatory  to  our  national  morale  or  dignity — we  should 
be  glad  to  see  investment  in  the  certificates  form  of  debt 
popularised  amongst  the  wage-earning  classes  of  the 
people  with  something  like  the  assiduity  displayed  in 
"booming"  National  War  Bonds.  The  number  of 
these  certificates  sold  in  the  week  ended  January  26 
was  2,370,734,  making  the  total  sales  to  date 
146,523,240,  which,  at  iss.  6d.  each,  represents  a  cash 


contribution  to  the  war  costs  of  ;^'ii3,740)5i ')  ^9'' 
which  five  years  after  date  of  issue  ^'146,523, 240  will 
have  to  be  paid.  Thus  the  various  forms  of  short-term 
debts  now  being  utilised  have  yielded  ;^'457, 676,000 
to  the  Exchequer — a  goodly  sum,  just  enough  to  make 
us  wish  it  were  three  times  as  much.  Still,  it  relieves 
to  a  sensible  extent  the  strain  on  the  banks. 


Revenue  from  taxes  and  monopolies  was  large  last 
week  at  ;^23, 81 5,000.  No  less  than  ;^i6,oo7,ooo  of 
this  came  from  income-tax,  and  excess  profits  duty  and 
munitions  levy  provided  another  ;^5, 024,000,  so  that 
altogether  ;^2 1,031,000  of  the  total  revenue  of  the  week 
came  from  these  two  sources.  Is  it  any  wonder  that 
the  sales  of  National  War  Bonds  should  have  diminished 
when  the  public  had  to  meet  such  tax  calls?  Expendi- 
ture on  supply  rose  to  ;^S2, 554,000,  and,  including  in- 
terest on  war  debt  and  miscellaneous,  the  aggregate 
week's  outgoings  was  ;£^53,3i6,ooo.  On  supply  alone 
this  was  at  the  rate  of  ;^7, 508,000  a  day.  Other  ex- 
penditure— viz.,  ;£^7i2,ooo  on  war  debt  interest  and 
_^5o,ooo  charged  against  miscellaneous — brought  up 
the  entire  revenue  demands  of  the  week  to 
more  than  ;^7,6i6,ooo  per  diem,  a  figure  above 
the  average,  which,  for  the  five  weeks  ended 
February  2,  was  barely  £,"6,600,000 ;  but  fluctua- 
tions of  this  description  must  be  expected. 
The  total  expenditure  of  the  seven  days  was 
;i^i55, 163,000,  so  that  again  upwards  of  ;^.  100,000,000 
of  the  week's  overturn  was  an  aft'air  of  pure  finance. 
The  Government,  for  instance,  had  to  pay  off 
;^97,2i2,ooo  of  supply  Treasury  bills,  -^702,000  of  War 
Loan  and  Exchequer  bonds,  ;£.^2,833,ooo  of  other  war 
debt,  and  ;^'i, 000,000  of  temporary  advances.  This  it 
did  by  raising  ^^84,838, 000  on  new  Treasury  bills,  by 
;^23,292,ooo  received  within  the  week  from  sales  of 
National  War  Bonds,  by  ;^  1,500,000  produce  of  sales 
of  War  Savings  certificates,  and  ;£r4, 304,000  drawn 
from  "  other  "  war  debt  sources.  Even  so,  p£'i6,ooo,ooo 
had  to  be  rai.sed  on  temporary  loan,  and  still  the  Trea- 
sury was  jQi,22\,ooo  short  of  the  week's  outgoings. 
That  sum  had  accordingly  to  be  drawn  from  the  Ex- 
chequer balances,  bringing  them  down  to  ;^is,i96,ooo. 
A  year  ago  they  were  ;^23,633,ooo.  The  total  debt  out- 
standing in  Treasury  bills  is  now  ;^i, 072, 75 1,000,  or 
;^'i2, 1 14,000  less  than  the  week  befo're. 


K. 


140 


Zbc  Jnvestors*  TRevtew. 


I'EBRUARV  9,    1918. 


Not  much  information  is  furnished  in  the  report  o; 
Baring  Bros,  and  Co.,  Ltd.,  and  neither  the  profits  nor 
the  dividends  are  disclosed,  but  the  amount  carried 
forward  is  a  trifle  higher  at  ;^i 2,400.  ,\pparently, 
however,  this  great  private  bank  and  finance  house  has 
had  a  very  successful  year,  as  current  and  other 
accounts  have  risen  ;^'3, 300,000  to  ;6' 20,93 5, 000,  ''"^ 
acceptances  are  ;^i, 300,000  higher  at  ;^"5,940,ooo. 
Cash  in  hand  and  at  short  notice  has  fallen  two  millions 
to  ^^Ts, 587,000,  but  bills  receivable  are  up  ;£;5, 300,000 
at  ^"12,291,000,  and  loans,  &c.,  have  increased 
;^'i, 400,000  to  /^8, 349,000.  Investments  are  practically 
unchanged  at  ^"1,657,000,  and  the  total  of  the  balance- 
sheet  is  ^^4, 700,000  larger  at  /;28,oi2,ooo. 


but  the  debit  balance  is  rather  smaller  at  ;^i,i9i,ooo. 
Depreciation  funds  have  been  increased  by  ^^235,000 
during  the  year,  and  now  amount  to  ;^596,ooo,  but  the 
steamboat  fund  is  /^.ooo  less  at  £,'172,000.  It  is 
announced  that  Lord  Cottesloe,  who  has  been  a  director 
of  the  company  for  upwards  of  fifty  years,  has  inti- 
mated his  desire  to  relinquish  his  .seat  on  the  board. 


Many  people  here  and  in  India  are  mourning  over  the 
loss  of  Sir  William  Wcddcrburn.  It  is  many  years  since 
we  first  came  in  contact  with  him,  and  during  the  last 
and  most  appalling  Indian  famine  we  saw  a  g(X)d  deal 
of  him,  and  the  more  we  saw,  the  more  we  came  to 
admire  the  fine  disinterestedness  of  the  man  and  his 
large  humanity.  No  man  has  done  more  to  shape 
Indian  ideas  of  liberty  towards  humane  goals  than  he 
did.  To  him  the  Indian  of  all  degrees  and  ranks  was  a 
fellow-citizen,  and  he  laboured  unceasingly,  gave  his 
lime  and  his  means  without  grudging,  to  further  what 
he  deemed  to  be  the  cause  of  Indian  liberties.  Every- 
bodv  did  not  agree  with  him  about  the  practicability  or 
advisability  of  forming  an  Indian  constitution  on  the 
lines  of  our  own,  but  no  one  could  deny  that  the  time 
had  come  when  the  bases  of  the  Government  in  India 
should  be  broadened  and  delivered  from  its  hitherto 
complete  domination  by  the  man  of  the  sword.  And 
the  Indian  Congress  which  he  helped  his  friend  who 
predeceased  him,  Mr.  Octavius  Hume,  to  bring  into 
existence  has  unquestionably  helped  to  educate  many 
classes  in  India  in  conceptions  of  self-government  they 
could  not  otherwise  have  attained.  If  the  Congress  has 
been  kept  out  of  the  wilder  revolutionary  channels,  it 
has  been  thanks  more  to  the  efforts  of  these  men  and 
to  their  native  friends  in  India  than  to  any  other 
influence.  We  hope  now  that  Sir  William  and  Mr. 
Hume  have  both  left  us  the  Congress  will  not  drift 
away  towards  an  Indian  form  of  Bolshevism,  for  that 
would  be  fatal  to  all  progress. 


These  have  been  trying  times  for  provision  dealers, 
and  ever  since  a  swarm  of  old  women  and  young  ladies 
in  Whitehall  (or  thereabouts)  thought  that  they  could 
manage  business  better  than  the  people  who  had  spent 
their  lives  learning  it,  difTiculties  both  for  purveyors  and 
consumers  have  been  increasing.  We  are  not  sur- 
prised, therefore,  to  find  that  a  firm  like  the  Home  and 
Colonial  Stores,  Ltd.,  in  spite  of  high  prices,  finds  its 
trading  profits  reduced  by  nearly  ;^'5o,ooo.  With  a  bit 
extra  received  from  interest  on  investments,  the  nett 
profit  comes  out  at  ;£226,i5o,  or  ;^"30,ooo  less,  but  this 
allows  of  the  regular  dividend  of  15  per  cent,  on  the 
ordinary  shares,  and  of  6s.  per  share  on  the  "A" 
shares,  while  ;^^32,ooo  is  again  handed  over  to  sick  and 
bonus  funds.  By  cutting  down  the  provision  for  in- 
come-tax from  ;£,"20,ooo  to  ;£'io,ooo,  and  the  amount 
placed  to  reserve  from  £'54,000  to  £"29,000,  !fie  balance 
remaining  to  be  carried  forward  is  raised  by  £5,500  to 
£53,700.  Creditors  have  been  reduced  by  £155,000 
to  £406,000,  and  stocks  are  £480,000  lower  iat 
£538,000,  but  cash  is  £244,000  up  at  £364,000,  and 
the  financial  position  looks   as    healthy    as    could    be 


In  spite  of  the  fact  that  nett  revenue  shows  a  decline, 
the  Hull  and  Barnsley  Railway  Co.  has  raised  the  divi- 
dend for  the  year  from  3  percent,  to  3^,  of  which  i  per 
cent,  has  been  paid  as  interim.  Gross  receipts  were 
£39,000  higher  at  £973,000,  but  expenses  rose  no  less 
than  £46,000  to  £577,000.  Miscellaneous  credits  were 
a  little  better,  and  £8,000  more  was  brought  in,  so  that 
the  total  balance  is  £2,400  up  at  £417,200.  After 
meeting  fixed  charges,  £10,000,  or  £15,000  less,  is 
placed  to  reserve,  and  it  is  this  that  allows  the  dividend 
to  be  increased,  although  the  policy  is  a  doubtful 
prudence.  The  balance  forward  is  unchanged  at 
£16,800.  It  is  stated  that  the  total  nett  income  in- 
cludes an  estimate  of  the  company's  claim  against  the 
Government  for  interest  on  capital  expenditure,  but 
pending  a  settlement  only  a  portion  of  it  is  available. 
Rcser\c  and  depreciation  funds  have  been  increased  by 
£74,000,  and  now  amount  to  £380,000. 

Apparently  most  of  the  Home  Railways  have  had  the 
experience  of  increased  receipts,  accompanied  by  a  cor- 
responding advance  in  expenditure,  which  leaves  the 
nett  revenue  comparatively  little  altered  as  compared 
with  1916.  The  Lancashire  and  Yorkshire  Railway  is 
no  exception  to  the  rule,  and,  while  the  gross  earnings 
show  a  gain  of  £714,000  at  £9,053,000,  working  ex- 
penses were  £720,000  higher  at  £6,627,000.  Miscel- 
laneous nett  receipts  increased  £12,000  at  £198,200, 
mainly  under  the  heading  of  general  interest,  and  the 
amount  brought  in  l>eing  practically  the  same,  the  total 
available,  after  meeting  fixed  charges,  is  £5,300  up  at 
£1,952,300.  Preference  dividends  require  £6,500 
more,  and,  after  again  paying  2^.  per  cent,  on  the  ordi- 
nary stock,  making  4!  per  cent,  for  the  year,  the 
balance  forward  is  rather  smaller  at  £39,680. 
Nett  capital  expenditure  amounted  to  £92,520,  against 
£208, &00  in  the  previous  year,  and  £340,000  has  been 
set  aside  for  depreciation,  including  "  arrears  of  work," 
the  total  fund  for  this  purpose  now  amounting  to 
£"1,379,000.  Nothing  else  in  the  balance-sheet  calls 
for  mention,  but  the  capital  account  is  now  £2,350,000 
overdrawn,  and  will  have  to  be  put  in  funds  as  soon  as 
conditions  permit. 


Gross  receipts  of  the  London  Brighton  and  South 
Coa.st  Railway  Co.  show  an  increase  of  £298,000  at 
£4,592,000,  while  expenses  rose  £293,000  to 
£3,207,000.  Miscellaneous  nett  revenue  was  better, 
and  the  total  income  of  £1,511,000  is  up  £12,500,  but 
£7,300  less  was  brought  in,  so  that  the  balance  is 
£5,200  higher  at  £1,541,000.  Fixed  charges  require 
a  little  more,  and  after  repeating  the  dividend  of  4  per 
cent. 'for  the  year  on  the  deferred  stock,  the  carry  for- 
ward is  up  £3,500  at  £33,680.  Capital  expenditure 
amounted  to  £23,830,  as  against  £38,830  overdrawn. 


Gross  receipts  of  the  Metropolitan  Railway  Company 
amounted  to  £1,166,000,  an  increase  of  £64,000,  and 
all  but  £400  of  the  gain  is  swallowed  up  in  larger  work- 
ing expenses,  which  came  to  £746,000.  Miscellaneous 
credits  were  up  £1,000  at  £190,200,  and  with  £1,500 
more  brought  in,  the  total  balance  is  £3,000  larger  at 
£625,200.  Preference  dividends  require  rather  more, 
and  after  again  paying  1  per  cent,  for  the  year  (half 
of  which  has  been  distributed  as  an  interim  dividend), 
and  placing  £20,000  to  renewals  fund,  there  remains 
£16,100,  or  £1,600  more,  to  be  carried  forward.  Sur- 
plus Land  stock  gets  the  usual  2J  per  cent,  per  annum. 
Depreciation  funds  (including  arrears  of  maintenance) 
amount  to  £62,720,  an  increase  of  £20,000,  and  the 
general  renewals  fund  is  now  £80,000.  During  the 
year  the  debit  at  capital  account  was  reduced  by 
£27,000  to  £304,000. 

Dismal  indeed  has  been  the  experience  of  the  South 
Metropolitan  Gas  Co.  in  the  past  half-year.  It  is  one 
of  the  l>cst  managed  of  the  private  undertakings,  and 
established  a  reputation  as  a  pioneer  of  cheap  light  and 
heat,  besides  inaugurating  a  co-operative  s<'heme  for 
its  employees  on  a  large  scale.  It  is  therefore  parti- 
cularlv  disappointing  to  find  that  cirt-umstances  over 
which  the  management  had  no  control  compel  it  to  with- 
draw £56,260  from  reserve  in  order  to  pay  the  sliding 
scale  dividend  at  the  rate  of  4  per  cent,  per  annum,  as 


February  9,  1918. 


XLhe  Jnvestors'  "Kevtcw, 


141 


compared  with  ;£'4  13s.  4d.  per  cent,  for  the  corre- 
sponding period,  when  ;^ig,ocM3  was  also  placed  to  in- 
surance fund,  and  £33>7'^  carried  forward.  The  nett 
profit,  after  providing  for  debenture  interest  and  other 
charges,  was  only  ;£,"8o,ioo,  or  sufKcient  to  pay  £2  7s. 
per  cent,  on  the  ordinary  stock,  although  the  sales  of 
gas  showed  an  increase  of  7.35  per  cent.,  which  ex- 
ceeds all  previous  records  for  the  corresponding  periods. 
Moreover,  it  is  stated  that  the  present  price  of  3s.  7d. 
per  1,000  ft.  does  not  allow  any  margin  of  proht,  and 
in  submitting  a  Bill  in  Parliament  for  the  substitution 
of  3s.  7d.  for  3s.  id.  as  the  sliding  scale  basis  (allowing 
for  a  dividend  of  4  per  cent.),  the  proprietors  will 
receive  a  good  deal  of  sympathy.  The  directors  state 
that  two  main  causes  have  contributed  to  the  unsatis- 
factory results.  Firstly,  the  action  of  the  authorities 
in  raising  the  price  of  coal  by  ;^"32,ooo  over  and  above 
the  contracts  which  had  been  entered  into,  and, 
secondly,  a  rise  of  over  ;^ 20,000  in  wages  beyond  what 
had  been  estimated.  For  all  practical  purposes,  the 
directors  complain,  the  financial  control  of  the  under- 
taking has  passed  from  the  hands  of  the  board  to  those 
of  the  Government  who  settle  the  prices  of  residual 
products,  as  well  as  raw  materials,  and  fix  scales  of 
wages  which,  possibly  justifiable  in  the  flood-tide  of 
prosperity,  appear  out  of  place  when  associated  with 
the  critical  period  through  which  the  company  is  pass- 
ing. Under  these  circumstances,  the  directors  think, 
it  is  bare  justice  that  the  control  of  the  State  should 
be  so  extended  as  to  provide  a  moderate  return  on  the 
capital  invested  in  a  business  so  essential  to  the  com- 
munity as  gas  supply.  We  hope  there  is  a  certain 
amount  of  permissible  exaggeration  in  these  views, 
owing  to  the  natural  resentment  against  outside  inter- 
ference with  a  concern  that  has  always  been  con- 
spicuously well  managed,  but  we  fear  there  is  a  great 
deal  of  truth  in  the  complaint.  Total  revenue  for  the 
half-year  amounted  to  ;^''i,65i,7oo,  an  increase  of 
;^i85,ooo.  Sales  of  gas  advanced  ;^i  66,000  to 
;^g96,ooo,  but  those  of  residuals  fell  ;^  10,000  to 
;^527,ooo.  Cost  of  manufacture  alone  increased 
;^307,c)oo  to  ;^i,232,5oo,  and  the  margin  cJf  working 
profit  -was  only  ;^i46,5oo.  The  amount  of  coal  car- 
bonised was  45,000  tons  larger  at  604,800  tons,  and 
the  total  of  gas  produced  was  7,450,000  thousand  feet, 
an  increase  of  606,000  thousands,  and  the  company 
ought  to  get  some  benefit  from  the  extra  work  done, 
instead  of  being  in  the  position  of  scarcely  being  able  to 
make  ends  meet. 


In  a  previous  issue  we  dealt  at  some  length  with  Sir 
G.  Charles  Mandleberg's  scheme  for  the  formation  of 
a  British  Manufacturers'  Corporation  to  assist  in  the 
development  of  our  export  trade,  and  we  are  glad  to 
learn  that  it  is  meeting  with  an  encouraging  amount  of 
support.  The  suggested  Cor{x>ration  would  be  run 
on  purely  mutual  lines,  and  the  details  have  evidently 
be  thought  out  very  carefully.  Members  would  pay  an 
annual  subscription  of  ;^ioo  or  ;£^2oo  a  year,  which  is 
a  trifling  expense  to  most  firms,  and  in  return  they 
would  receive  the  benefit  of  what  is  intended  to  be  a 
world-wide  organisation.  A  great  deal  of  most  valuable 
assistance  could  be  given  to  exporters  on  the  lines 
suggested.  We  regard  the  scheme  as  thoroughly 
practicable,  and  wish  it  all  success. 


Atmospheric  nitrate,  which  is  now  said  to  form  the 
main  basis  of  the  German  explosive  supply,  is  frequently 
talked  of  in  some  quarters  as  the  future  rival  of  the 
Chilean  product.  But  it  is  a  notable  fact  that  the 
Germans,  who  have  several  large  oficinas  in  Chile,  have 
refused  to  sell  them  in  spite  of  the  fact  that  they  were 
offered  a  very  high  price,  which  goes  to  prove  that  they 
anticipate  being  again  consumers  of  Chilean  nitrate 
after  the  war.  Moreover,  Scandinavians,  who  know  a 
good  deal  about  atmospheric  nitrates,  have  been  in 
treaty  to  purchase  nitrate  properties  during  the  past 
year.  As  far  as  the  present  position  of  the  Chilean 
industry  is  concerned,  the  Government,  fearing  there 
W'ould  be  no  limit  to  price  if  a  free  market  continued, 
took  over  control  at  the  end  of  last  year,  with  the  result 


that  prices  fell  to  12s.  per  quintal.  But  the  1918 
accounts,  as  is  pointed  out  by  a  correspondent  in  the 
Financial  Times,  may  be  expected  to  show  very  well. 
The  amount  of  profit  made  in  1917  was  far  from  pro- 
portionate to  the  increase  in  selling  prices.  Most  of  the 
companies  were  handicapped  by  forward  sales,  and  the 
average  selling  prices  obtained  for  1917  were,  it  is  said, 
probably  about  8s.  6d.,  and  in  a  few  cases  as  high  as 
los.  per  quintal.  A  very  heavy  increase  in  the  cost  of 
production  set  in  about  the  middle  of  the  year,  and  by 
the  end  of  the  year  costs  had  risen  to  8s.  to  8s.  6d.  per 
quintal  for  the  cheapest,  and  los.  to  los.  6d.  jjer  quintal 
for  the  dearest  producers.  Owing  to  the  fall  in  the 
exchange  a  decrease  of  6d.  to  is.  per  quintal  has  taken 
place  during  the  last  few  weeks,  and  from  present  in- 
dications it  looks  as  if  costs  have  reached  high-water 
mark.  The  majority  of  the  companies,  we  understand, 
have  sold  their  production  up  to  June,  1918,  at  prices 
averaging  iis.  to  12s.  per  quintal,  and  they  could  now 
obtain  about  the  same  prices  for  the  second  half  of  the 
year,  which  would  leave  a  very  substantial  margin  of 
profit. 

A  great  deal  of  British  capital  has  been  sunk  in  West 
Canadian  timber  propositions  of  recent  years  with  very 
disappointing  results.  Much  of  it  has  been  lost,  and 
many  investors  at  present  owning  interests  in  the 
several  more  or  less  moribund  concerns  have  almost 
despaired  of  witnessing  any  appreciable  recovery.  Un- 
satisfactory as  has  been  the  history  of  many  of  these 
ventures,  however,  evidence  tends  to  accumulate  that 
the  future  is  not  without  hope,  and  while  advices  that 
have  come  to  hand  are  far  from  calculated  to  put  us 
into  optimistic  vein  there  certainly  seems  no  justifica- 
tion for  unnecessarily  dwelling  upon  the  dark  side.  Not 
the  least  interesting  and  eocouraging  item  of  informa- 
tion that  has  recently  come  under  our  notice  is  the 
statement  issued  by  the  forest  branch  of  the  British 
Columbia  Lands  Department.  According  to  this  report 
the  amount  of  logs  scaled  up  till  the  end  of  October  last 
show^ed  an  increase  over  the  preceding  twelve  months 
of  24,462,000  ft.  board  measurement,  while  the  total 
sales  of  manufactured  lumber  during  1917  exceeded 
that  of  the  previous  year  by  over  5f  million  dollars. 
The  output  for  the  month  of  November  is  said  to  have 
constituted  a  record.  Nearly  60,000,000  ft.  is  the  total, 
or  approximately  20,000,000  ft.  increase  over  the  same 
period  of  1916.'  It  is  believed  in  lumber  circles  that, 
providing  the  labour  situation  can  be  effectively 
handled,  and  the  logs  secured,  the  next  few  months 
should  witness  still  greater  increases. 


We  should  judge  that  Lister  and  Co.,  Ltd.,  actually 
did  better  in  the"  year  to  November  30  last,  although 
the  nett  profit  of  ;^238,340  shows  a  decline  of  ^^14,000. 
But  this  is  after  making  provision  for  income-tax  and 
excess  duty,  both  on  a  higher  scale  than"  in  the  pre- 
vious year,  when  there  was  a  gain  of  ^"1 18,000.  With 
;^67,ooo  more  brought  in  the  available  balance  is 
_^53,ooo  up  at  ;^385,S40,  and  the  directors  seem  justified 
in  raising  the  bonus  from  zl  per  cent,  to  5  per  cent., 
making  the  total  distribution  12J  per  cent.,  against  10 
per  cent.  Reserve  gets  ;^30,ooo,  or  double  last  year's 
appropriation,  and  ;^i5,ooo  is  again  placed  to  mvest- 
ments  contingency  fund,  but  employees'  benefit  fund 
receives  only  half  at  ;^io,ooo,  after  which  ;^24,ooo 
more  at  ;^i7i,300  remains  to  be  carried  forward.  Sun- 
dry creditors  are  up  ^263,000  at  ;^546,ooo,  debtors 
^19,000  at  ;^342,ooo,  stocks  ;ifi22,ooo  at  ;^834,ooo, 
and  investments  ;,^245,ooo  at  ;g374,ooo,  but  cash  and 
bills  are  ;^33,ooo  lower  at  ;^224,ooo.  Eyerythmg 
points  to  active  and  prosperous  trade  conditions,  and 
the  company  is  in  a  very  much  stronger  position  than 
.  was  the  case  a  few  years  ago. 

A  highly  important  development  in  connection  with 
tin  mining  in  Cornwall  has  taken  place  during  the  past 
week.  The  Dolcoath,  in  conjunction  with  the  East 
Pool  and  Agar,  has  purchased  the  mineral  rights  of  the 
Tehidv  Estate  for  ;^qo,ooo,  one-third  of  which  will  be 
provided  by  the  East  Pool  and  the  remaining  ;^6o,ooo 


142 


^be  Jnvestors'  "Keview. 


F"ebruarv  9,  1918. 


by  the  Dolcoath.  'l"he  latter  is  offering  to  shareholders 
;;£,'70,ooo  of  6  per  cent,  tax  free  debentures  redeemable 
in  ten  years.  The  mineral  rights  of  the  Tehidy  Estate 
extend  over  about  9,000  acres,  and  cover  one  of  the 
most  famous  mineralised  iiones  of  tin  ore  in  the  world, 
which  spread  in  a  continuous  line  for  over  five  miles. 
The  mines  already  worked  on  the  estate  include  the 
East  Pool,  Tehidy,  Barncoosc,  Carn  Brea,  a  part  of 
South  Crofty,  Dolcoath,  Cook's  Kitchen,  West  Seaton, 
and  Bosset  mines,  but  there  is  a  large  area  that  up  to 
the  present  has  not  even  been  prospected,  as  the  owners 
of  the  Tehidy  Estate  have  always  reTused  to  allow 
mining  operations  to  encroach  on  the  home  and  adjacent 
farm  lands,  or  to  come  within  sight  of  the  Tehidy 
mansion  house.  This  incident  shows  how  the  develop- 
ment of  the  mineral  resources  of  the  country  has  been 
hampered  by  the  veto  of  landlords,  and  it  is  a  notorious 
fact  that  this  hindering  of  wealth  production  has  been 
going  on  all  over  the  country.  The  Ministry  of  Muni- 
tions has  discovered  that  in  trying  to  increase  the  output 
of  home  minerals  for  war  purposes.  Probably  the 
Tehidy  Estate  would  not  have  been  thrown  open  had 
not  the  Ministry  called  upon  the  tin  mines  of  Cornwall 
to  increase  their  output  as  much  as  possible.  The 
Dolcoath  has  paid  since  its  incorporation  in  1895  an 
average  of  ;^8,558  per  annum  in  royalties,  and  this 
sum  it  will  save  in  future  by  the  acquisition  of  the 
mineral  rights.     It  is  a  very  sensible  .scheme. 


In  the  linoleum  trade  the  position  .seems  to  be  going 
from  bad  to  worse.  The  stocks  of  linseed  oil,  an  im- 
portant ingredient  in  the  manufacture  of  floor-cloth, 
are  becoming  exhausted,  and  there  is  said  to  be  no 
way  of  renewing  them.  Official  prices  have  been 
raised,  but  this  avails  nothing  as  far  as  increasing  the 
supply  is  concerned.  It  matters  not  whether  the  price 
be  60s.,  80s.,  or  loos.  If  the  mills  are  not  allowed  to 
obtain  linseed  from  overseas,  mill  production  cannot  be 
stimulated.  At  least  one  large  concern  is  said  to  be 
contemplating  shutting  down,  and  unless  the  situation 
alters  for  the  better  more  undertakings,  it  is  to  be 
feared,  will  have  to  follow  suit. 


The    Banking    Year*  and    Points    from 
Bank  Ciiairmen's  Speeches. — 11, 

Recent  bank  amalgamations  have  overshadowed  the 
banking  year  so  much  that  people's  minds  have  been 
diverted  by  them  from  many  interesting  problems  well 
worth  the  attention  of  shareholders,  customers,  and  the 
nation.  The  latest  amalgamation  of  all,  that  of  the 
London  County  and  Westminster  Bank  with  Parr's,  is 
in  the  mass  of  the  liabilities  involved  the  greatest  event 
of  them  all,  and  we  shall  have  a  few  words  to  say  about 
it  in  another  column.  Meantime,  let  us  get  back  to  the 
speeches  of  those  who  presided  at  bank  meetings. 
Among  those  speeches  there  is  never  one  more  out- 
standing, comprehensive  in  survey,  and  sagacious,  than 
that  of  Sir  Felix  Schuster,  governor  of  the  Union  of 
London  and  Smiths  Bank.  Those  who  missed  reading 
that  speech  in  our  last  week's  number  might  profitably 
turn  back  to  it,  for  Sir  Felix  handles  the  most  vital  pro- 
blems of  banking  and  national  finance  in  a  manner  that 
renders  the  subject  instructive.  Dealing  with  the  posi- 
tion of  the  National  Government,  for  instance,  he  points 
out  that  of  the  total  national  expenditure  during  the 
war,  fully  26  per  cent.,  or  ;^i,  137,000,000,  has  been 
provided  out  of  the  revenue,  and  this  augurs  well  for  our 
capacity  to  bear  the  after-war  burden  the  costs  of  the 
war  will  have  thrown  upon  the  nation.  At  the  same 
time,  he  admitted  that  one  form  of  the  Government's 
indebtedness  gave  Kim  some  concern,  and  that  is  the 
large  expansion  in  the  currency  notes.  Sir  Felix  fails 
to  see  how  such  a  demand  can  exist  for  this  mass  of 
small  currency,  and  characterises  it  as  a  form  of  in- 
flation which  ought  to  be  very  carefully  watched  and  re- 
duced at  the  earliest  moment. 

We,  too,  cannot  quite  fathom— bearing  in  mind  the 
general  use  of  the  cheque — the  necessity  for  such  a 
mass  of  paper  money,  except  on  one  supposition.  It 
seems  to  us  to  be  an  effect  of  the  reckless  lavishness — 


there  is  no  other  description  that  suits  it — with  which 
the  Government  departments  are  raising  the  pay  of 
those  employed  by  it,  and,  in  doing  so,  forcing  up  the 
pay  of  employees  everywhere,  until  they  are  now  at  a 
height  which,  as  a  rule  and  where  patriotic  economy  is 
exercised,  far  surpasses  the  increased  cost  of  living. 
As  the  people  thus  favoured  do  not  keep  banking  ac- 
counts and  cannot  draw  cheques,  more  and  ever  more 
paper  money  is  required  to  meet  the  swelling  wages  bill 
week  by  week,  and  undoubtedly  this  imperfectly  secured 
money  may  produce  trouble,  because  it  tends  to  in- 
flation of  the  worst  kind,  and  must  depreciate  the  pur- 
chasing power  of  the  sovereign.  In  Austro-Hungary 
the  note  circulation  has  risen  to  some  ;^"8oo,c)oo,ooo,  and 
the  gold  held  against  it  has  fallen  below  ;^6,ooo,ooo. 
We  are  far  enough  from  such  .t  bankrupt  position,  but 
none  the  less  are  these  Treasury  notes  a  danger  ahead, 
and  not  least  to  our  banks. 

Sir  Felix  did  well  to  remind  the  country  that  we  are  in 
a  critical  period,  that  taxation  must  be  high  and  remain 
high  for  many  years,  and  that  if  we  are  to  emerge  sol- 
vent, civilised,  and  progressive  from  the  ordeal,  we 
shall  have  to  produce  more  and  to  buy  less.  "  Every 
one,"  he  said,  "  will  have  to  work  harder  than  ever 
before,  to  spend  less,  to  save  more,"  and,  in  his 
opinion,  the  taxation  of  the  country  should  be  based, 
not  only  upon  income,  but  especially  on  exp)enditure, 
and  particularly  expenditure  on  luxuries.  There  is  un- 
doubtedly a  large  field  in  that  direction  for  the  ingenuity 
of  the  tax  devisor,  and  we  almost  wish  that  Sir  Felix 
himself  were  given  the  job  to  frame  our  scheme  of  im- 
posts. It  will  have  to  be  of  enormous  range  and  yet 
nowhere  sterilising.   . 

At  the  meeting  of  the  National  Provincial  Bank  of 
England,  Lord  Inchcape,  who  presided,  had  as  little 
to  say  as  Sir  Felix  Schuster  about  the  purchase  of  the 
Union  of  London  and  Smiths  Bank,  but  neither  spieaker 
gave  countenance  to  the  popular  notion  that  these 
transactions  are  the  outcome  of  jealous  rivalry  among 
banks  as  to  which  shall  carry  the  biggest  liability, 
for  that  is  what  the  largest  deposit  and  current  account 
liability  total  means.  There  are  at  the  present  time 
quite  other  and  far  more  important  reasons  for  the 
.  amalgamation  of  banks  than  a  mean  one  of  that  kind ; 
but  the  time  has  hardly  yet  come  tp  dwell  upon  them. 
Lord  Inchcape,  however,  had  one  observation  to  make, 
which  nearly  everybody  in  business  is  sure  to  echo ; 
he  emphatically  deprecated  the  interference  by  the 
Government  in  industry  and  business  after  the  war. 
He  was  of  one  mind,  he  said,  with  Mr.  Leaf,  who, 
speaking  at  the  London  County  and  Westminster  Bank 
meeting,  had  some  emphatic  words  to  utter  regarding 
Government  domination.  Our  merchants  and  pro- 
ducers loyally  submit  to  bureaucratic  interference  and 
control  in  a  time  of  dire  straits  like  the  present,  but 
lx>rd  Inchcape  and  other  bank  chairmen  are  quite 
right  in  declaring  that  "  if  any  Government,  or  any  body 
of  officials,  succeeds  in  getting  control  of  the  business 
of  this  country,  or  nationalises  its  industries,  they  will 
kill  the  goose  which  has  laid  the  golden  eggs  of  the 
last  two  centuries,  a  goose  which  has  enabled  us  to 
bear  the  financial  burden  of  this  war  against  the 
flagrant  attempt  to  conquer  Europe  and  to  reduce  Great 
Britain  to  the  position  of  a  vassal  State."  We  agree 
absolutely  with  this  deliverance,  while  at  the  same 
time  insisting  that  our  business  men  must  recognise 
that  if  they  are  to  maintain  their  position  in  the  world, 
hold  their  own  everywhere  as  they  did  even  in  the  dark 
times  of  subsidised  and  treacherous  German  competi- 
tion, they  will  have  to  change  their  habits  and  assume 
an  attitude  of  mutual  confidence,  of  systematic  co-opera- 
tion and  general  helpfulness  which  was  unknown  before 
the  war. 

One  point  was  raised  at  the  National  Provincial  meet- 
ing by  Mr.  John  Coles  in  his  most  sympathetic  brief 
speech,  viz.,  the  advisability  of  laying  by  and  increasing 
reserves.  "  I  would  like  to  see  your  reserve  made  up 
to  the  paid-up  capital,"  he  said,  and  added,  "  I  believe 
that  big  reserves  are  better  than  big  dividends."  That 
is  a  sentiment  which  every  bank  shareholder  should 
echo   and   give   practical   effect   to.      The  most    pleas- 


I 


February  9,  1918. 


^be  Jnvestore'  IReview. 


143 


1 


ing  thing  about  the  exhibits  of  our  great  banks 
for  the  past  year  is  their  general  abstention 
from  increasing  the  dividends  paid  as  their  profits 
would  have  allowed  them  to  do.  All  had  larger 
nett  revenues,  but  very  few  of  them  incre'ased 
their  dividends,  and  it  would  be  well  if  a  self- 
denying  ordinance  were  passed  forbidding  any  increase 
in  the  dividends  paid,  no  matter  how  great  the  profits, 
until  the  reserves  have  been  increased  to  a  total  well 
"beyond  that  of  the  paid-up  capital.  For  Mr.  Coles 
was  quite  right  when  he  added,  "  personally  I  would 
rather  curtail  the  dividend  if  I  knew  that  the  reserve 
was  being  built  up."  Reserves  are  the  great  buttresses 
•of  a  bank,  not  only  the  source  of  a  feeling  of  confi- 
dence among  its  clients,  but  of  safety  among  its  share- 
holders. The  paid-up  capital  of  the  banks  dealt  with 
in  our  summary  table  last  week  is  about  ;^io, 000,000 
larger  than  the  reserves ;  there  is,  therefore,  ample 
scope  for  taking  Mr.  Cole's  good  advice. 

At  the  meeting   of  Lloyds  Bank,   held  in   Birming- 
ham on  Tuesday,    its   chairman,   Sir  Richard    Vassar 
Smith,    emphasised    the    remarkable    stability    of    our 
Money  market  under  the  enormous  strain  caused  by  the 
shiftings  and  creations  of  credit  to  be  used  as  capital. 
No  less  than  ;^io3,c)oo,ooo  of  subscriptions  to  the  war 
debt  had  been  applied   for  through   Lloyds  Bank  last 
year,  and  these  naturally,  as  always,  tended  to  swell 
out  deposits  so  that   this  bank  owed  on  current,    de- 
posit and  other  accounts  ;^i 74,068,000  at  the  end  of 
the   year,   or  ^'22,700,000   more    than    at  the-  end    of 
1916.      These  figures  are  formidable  in  magnitude,  and 
appear  to  have  suggested  to  some  minds  a  fear  lest  the 
individual  commitments  of  the  bank  to  large  creditors 
might  be  a  source  of  danger,  but  it  need  not  be  so,  for 
Mr.  Beaumont  Pease,  the  deputy-chairman,  stated  that 
the  average  liability  of  the  bank  to  its  customers  was 
just  slightly  over  ;^250.  Mr.  Pease  also  had  some  words 
of  weight  to  say  about  the  threatened  levy  on  capital, 
in  particular  condemning  the  phrases  "  conscription  of 
wealth"  and  "levy  on  capital."      If,   he  said,   "they 
meant  merely  that  the  vast  expenses  of  the  war  must 
be   met  by  those  best  able   to   meet    it,  no  one  could 
object,  but  if  the  phrase  was  used  in  antithesis  to  the 
■conscription  of   life,  it  maliciously   implied  that   those 
without   property   had  given   their   lives,    whereas  the. 
moneyed  classes  had  not,  and  that  to  make  the  sacrifice 
•equal  the  wealthy  should  surrender  their  wealth  under 
penalty,  or  the  former  should  refuse  to  make  further 
sacrifices,    such   assertions   constitute  a  misleading  or 
malicious   libel  on   both   classes."      About  the    actual 
business  of  the  bank  Sir  Richard  Vassar   Smith   had 
jiothing  but  a  cheerful  report  to   make.       Agriculture 
was  prospering,  and  the  outlook  good.      The  price  of 
cotton   was  about  four  times   the  normal   value,    and 
spinners,   although  working  on  short  supplies  at  high 
prices  under  Government  restrictions,  were  doing  well. 
Manufacturers   of  cloth,   especially  under  Government 
contracts,   had  also  done  well.       The  iron    and    steel 
market  remained  strong  all  round,  and  the  general  en- 
gineering trade  was  busy.      This  prosperity   is,  how- 
ever, nearly  all  the  product  of  war  activities  and  national 
requirements  brought  into  active  operation  by  the  war, 
and  it  is  to  be  hoped  that  when  the  conflict  ends  things 
will  get  back  without  a  shock  to  their  normal  conditions. 
As  the  chairman  pointed  out,  the  tendency  of  Govern- 
ment control  on  business  has  been  hurtful  to  the  mer- 
chants, who  have  been  shoved  aside  in  the  attempt  to 
do  without  middlemen.      The  same  complaint  is  heard 
everywhere,      from     country     banks     especially,     and 
although  it  is  recognised  that,   as  the  chairman  said, 
we  must  have  better  organisation  of  our  industries,  and 
harmony  between  capital  and  labour,  both  working  in 
the  national   interest  after  the  war,    it  will  not  do  to 
attempt   to   crush  out   a    class    most   valuable   to    the 
stability  and  progress  of  the  country  and  the  Empire. 

People  are  fumbling  about  these  bank  amalgama- 
tions, and  hinting  that  it  will  be  a  bad  day  for  the  small 
customer  when  all  our  banks  are  grouped  into  large 
companies.  We  doubt  whether  there  is  much  ground 
for  this  fear.  At  any  rate,  we  have  plenty  of  smaller 
banks  in  the  provinces  yet  whose  business  is  wholly 


local,  and  mostly  concerned  with  particular  branches  of 
trade.  There  is,  for  example,  the  Bradford  District 
Bank,  the  address  of  whose  chairman,  Sir  Prince 
Smith,  had,  owing  to  illness,  to  be  read  last  week  by 
his  colleague,  Mr.  James  Bairstow,  and  who  had,  as 
usual,  some  interesting  information  to  convey  about  the 
woollen  trade,  which  has  prospered  exceedingly  since 
the  war  began ;  but  he,  too,  spoke  out  with  no  am- 
biguity of  phrase  about  the  danger  of  Government  in- 
terference with  the  course  of  business  and  in  praise  of 
the  merchant,  of  his  share  in  the  growth  and  prosperity 
of  our  textile  industry,  of  his  foresight  and  courage  as 
a  trader,  his  knowledge  of  markets,  of  languages,  and 
exchanges,  all  of  which  endowments  get  but  scant  re- 
cognition from  those  fussy  guides  of  the  hour  whose 
chatterings  tend  to  fill  us  with  fear  lest  it  should  be  in- 
deed true  that  the  glory  of  the  British  Empire  is  passing 
away,  and  that  we  are  becoming  a  nation  of  decadents. 
Sir  Prince  Smith  declared  it  to  be  extremely  unfortu- 
nate that  a  measure  of  State  control  should  have  been 
found  necessary,  under  which  the  brains  of  some  of  our 
ablest  men  are  not  utilised  to  their  fullest  capacity,  and 
no  doubt  he  had  good  ground  for  saying  what  he  did. 
But  there  is  this  excuse  for  the  Government  ihat  we 
were  in  an  emergency  when  imperative  requirements 
had  to  be  rushed  for,  when,  as  in  the  woollen  indus- 
tries, prompt  measures  had  to  be  taken  in  order  that 
we  should  be  masters  of  the  world's  production  and 
supplies.  That  was  emphatically  the  case  with  wool, 
only  8  per  cent,  of  the  world's  total  production  of  which 
was  controlled  by  enemy  countries,  40  per  cent,  being 
produced  in  the  British  Empire  alone.  And  to-day  our 
enemies  are  not  only  starving,  but  have  to  clothe  them- 
selves with  paper  because  they  can  get  no  wool,  not 
even  from  the  Eastern  territories  they  have  overrun. 
No  wonder  local  banks  like  the  Bradford  District  con- 
tinue to  prosper.  But  even  such  are  drawn  into  the 
ever-widening  sweep  of  war  necessities. 


Shipping  Control. 

Probably  the  Liverpool  Steamship  Owners'  Associa- 
tion has  about  the  highest  reputation  of  any  similar 
combination  in  the  whole  range  of  commerce,  not  only 
on  account  of  its  world-wide  connections,  but  because 
it  has  always  stood  for  the  independent  initiative  which 
is  the  real  basis  of  our  wonderful  mercantile  marine 
supremacy.  It  has .  never  fought  to  get  on  to  the 
slippery  slope  of  State  subsidies,  nor  clamoured  for  any 
other  ' '  protection  ' '  than  the  complete  freedom  of  the 
seas  which  all  nations  alike  enjoyed  in  times  of  peace. 
Consequently  its  reports  carry  exceptional  weight  as 
reflecting  the  impartial  and  considered  opinion  of  a 
representative  body  which,  more  than  any  other  in- 
dividual organisation,  helps  to  knit  the  Empire  together, 
and  to  foster  the  international  trade  on  which  so  much 
of  our  prosperity  depends.  We  regret,  therefore,  to 
find  that  in  the  annual  report  just  issued  there  is  a 
rather  virulent  attack  on  the  jx>licy  of  shipping  control 
as  conducted  by  the  Government.  No  doubt  mistakes 
have  been  made — they  are  inevitable  when  a  Government 
department  is  set  up  suddenly  to  take  charge  of  the 
ramifications  of  a  highly  intricate  business ;  but  what 
we  have  to  consider  is  whether,  on  the  whole,  the 
national  interests  have  been  better  served  under  the 
most  exceptional  conditions  existing  by  a-  supreme 
shipping  dictator  than  they  would  have  been  if  each 
individual  shipowner  had  been  left  free  to  follow  his 
own  particular  bent.  And  although  the  indictment  sub- 
mitted by  the  Liverpool  Association  is  a  formidable 
one,  it  does  not  answer  this  question  satisfactorily ;  it 
merely  suggests  that  the  arrangements  made  have  often 
been  far  from  perfect,  and  that  they  are  capable  of 
considerable  improvement,  which  is  doubtless  quite 
true. 

The  gravamen  of  the  charge  brought  by  the  Owners' 
.Association  is  that  there  has  been  a  great  waste  of  our 
shipping'  resources  with  a  corresponding  reduction  in 
the  quantity  of  goods  carried,  and  that,  in  effect,  if  the 
owners  were  allowed  to  work  on  their  own  methods, 
every  ship  on  the  average  could  make  an   additional 


144 


Zbc  Jnvestors'  IRevicw. 


February  9,  1918. 


voyage  per  annum,  with  the  immediate  result  of  in- 
creasing the  carrying  capacity  by  two  million  tons. 
We  are  told  that  the  present  Government  requisitioned 
all  ocean-going  steamships  for  the  purpose  of  securing 
the  whole  of  the  profits  to  be  made  from  freights  over 
and  above  the  Blue-book  rates  paid  on  a  time 
basis  for  the  use  of  the  ships.  In  determining  on 
this  course,  the  Government  did  not  give  a  moment's 
thought  to  the  manner  in  which  the  ships  were  to  be 
managed.  The  Slate  had  no  organisation  either  in 
this  country  or  abroad  capable  of  undertaking  the 
management,  and  therefore  the  Shipping  Controller 
had  to  appeal  to  the  owners  to  carry  on  the  business 
with  the  ships  which  the  Government  had  gone  through 
the  form  of  seizing.  We  think  it  may  be  .admitted  that 
most  owners  have  loyally  done  their  best  to  work 
under  these  difficult  conditions,  but  the  carrying  power 
having  been  acquired  by  the  State,  each  Department 
considers  that  it  is  entitled  to  use  that  power  in  the 
manner  which  will  best  facilitate  the  performance  of 
the  particular  duties  imposed  upon  it.  All  the  various 
Ministries,  Commissions,  and  Committees  fight  for 
their  own  hand  without  regard  to  the  interests  of  the 
others.  They  cannot  understand,  or  they  will  not 
recognise,  that  delay  to  the  ships  is  paid  for  by  loss  of 
carrying  power — that  is  by  a  les.sening  of  the  total 
volume  of  our  oversea  supplies.  Many  of  the  delays 
are  trifling  in  themselves,  but  the  cumulative  effect  is 
most  serious.  They  can  be  prevented  in  a  great 
measure  if  the  ships  are  managed  as  a  separate  in- 
terest, worked  with  the  .sole  aim  of  obtaining  the  maxi- 
mum number  of  voyages,  and  therefore  the  maximum 
amount  of  cargoes.  But  "  shipping  in  the  hands  of 
the  State  is  the  servant  of  all  the  Departments,  Com- 
missioners and  Committees  and  the  master  of  none, 
and  waste  which  has  not  to  be  paid  for  directly  in  cash 
is  ignored  by  them  one  and  all.  The  Shipping  Con- 
troller and  the  officials  of  the  Ministry  of  Shipping  and 
the  Advisory  Committees  they  have  called  in  to  their 
assistance,  have  to  administer  a  policy  which  is  funda- 
mentally bad." 

We  are  afraid  there  is  a  great  deal  of  truth  in  all 
this,  and  in  many  of  the  other  points  which  the  report 
makes  against  State  control,  but  at  the  same  time  most 
people  are  probably  convinced  that  some  sort  of  control 
had  become  necessary.  Under  the  system  of  free  com- 
petition for  cargoes  it  was  inevitable  that  preference 
should  be  given  to  those  yielding  the  highest  freights, 
while  essential  supplies  required  by  the  country  were 
not  coming  forward  in  sufficient  quantities.  There 
cannot  be  much  doubt  that  our  shipping  could  be  better 
managed  and  used  to  more  advantage  than  is  the  case, 
biit  shipping  rings  had  much  to  answer  for  in  the  pre- 
war days,  and  owners  will  do  well  to  use  their  present 
leisure  and  lack  of  responsibility  in  considering  how 
they  can  best  apply  the  critical  faculties  they  have  de- 
veloped so  conspicuously  to  fostering  the  national  in- 
terests when  normal  conditions  are  once  more  restored. 


Bank 


Fusions,   Their   Risks  and 
Advantages. 


It  is  by  no  means  surprising  that  the  latest  bank  amal- 
gamation announced  a  week  ago,  that  of  Parr's  Bank 
with  the  London  County  and  Westminister,  should 
have  at  last  roused  some  people  to  move  the  Govern- 
ment to  look  into  the  new  fashion  and  to  ask  whether 
the  formation  of  such  enormous  credit-wielding  institu- 
tions, as  .some  half-dozen  of  our  banks  have  now  be- 
come, was  for  the  public  good.  That  it  would  be  for 
the  shareholders'  good  is  obvious  enough,  because  in 
the  two  latest  announced  amalgamations  the  change 
has  brought,  or  will  bring,  about  a  reduction  in  the 
liability  of  shareholders.  It  is  not  so  with  the  London 
and  South-Westem  and  London  and  Provincial  Banks, 
for  in  taking  London  and  South-Westem  shares  in  ex- 
change for  their  own,  the  proprietors  of  the  London 
and  Provincial  Bank  accept  an  additional  liability  of 
•^i  per  share.  But  that  is  so  trivial,  and  the  nominal 
value  of  the  shares  in  both  banks  is  only  ;^io,  that  it 
probably  would  not  weigh  at  all  in  the  negotiations. 


It  is  otherwise  with  the  National  Provincial  and  the 
Union  of  Lojidon  and  Smiths,  becau.se  in  making  the 
exchange  the  Union  of  London  and  Smiths  share- 
holders .slide  out  of  a  liability  of  ;^"84  los.  per  share, 
and  assume  in  exchange  a  liability  of  only  ;£!4^-  Also 
should  the  amalgamation  between  the  London  County 
and  Westminster  and  Parr's  Bank  be  sanctioned— as 
we  see  no  reason  why  it  should  not — then  the  liability 
of  ;£^40  a  share  now  lx)rne  by  shareholders  in  Parr's 
Bank  will  come  down  to  one  of  ^"15  a  share  in  the 
amalgamated  bank. 

It  need  astonish  no  one  if  a  consideration  of  this 
kind  had  s6me  material  influence  in  deciding  the  boards 
to  come  together  and  arrange  these  amalgamations, 
and  there  is  nothing  objectionable  in  a  movement  of  the 
kind  provided  the  interests  of  the  depositor  are  care- 
fully safeguarded.  The  subject  is  a  delicate  one, 
which  we  have  no  desire  to  probe  too  deeply  in  present 
circumstances  ;  but  if  the  Government  does  in.sist  on 
"butting  into"  the  business,  the  only  good  open  to 
it  to  do  would  be  to  insist  on  the  insertion  of  some 
proviso  limiting  the  dividends  paid  to  shareholders 
until  the  reserve  funds  had  been  piled  up  to  a  much 
greater  magnitude  than  any  of  them  have  thus  far 
attained.  We  should  say  that  a  reserve  amounting  to 
twice  the  paid-up  capital  would  be  none  too  large  to 
aim  for  in  the  interests  of  both  shareholders  and  public. 
But,  apart  from  considerations  of  this  description,  it 
is  obvious  that  our  banks  are  seeking  to  strengthen 
themselves  against  possible  adverse  circumstances 
arising  out  of  the  war,  and  also  to  make  themselves 
stronger  to  assist  the  Government  in  carrying  that  war 
to  a  successful  conclusion,  as  well  as  to  sustain  our 
industries  when  peace  has  been  attained.  Already  the 
war  has  involved  them  in  a  prodigious  increase  of 
liabilities.  It  was  estimated  a  fortnight  ago  by  the 
Economist — than  \vhich  no  journal  published  has  better 
means  of  getting  'at  the  truth^that  the  deposit 
liabilities  of  the  English  banks  have  increased  by  more- 
than  /^5G8,ooo,ooo  since  1913,  that  the  Scotch  banks 
have  also  expanded  their  liabilities  by  ;^7i, 532,000, 
and'  the  Irish  by  ;^3i, 642,000,  so  that  altogether  the 
banks  of  the  LTnited  Kingdom  have  expanded  their 
liabilities  within  the  last  four  years  by  ;^67 1,537,000. 
Can  any  one  wonder  in  face  of  that  expansion  that 
amalgamations  should  have  taken  place,  that  further 
steps  of  the  same  kind  are  being  discussed  in  the 
English  provinces,  that  Scotch  bank  amalgamations  are 
also  said  to  be  in  the  air,  or  that  two  Irish  banks  have 
already  come  under  the  shelter  of  strong  English 
banks?  It  is  the  most  natural  thing  in  the  world,  but 
the  mass  of  jjeoplc  have  no  conception  of  the  formid- 
able risks  and  liabilities  our  bankers  have  patrioti- 
cally assumed  without  a  murmur  or  hint  of  protest. 

It  is  well  to  speak  out  a  little  on  a  subject  of  this 
kind,  and  we  should  like  to  ask  our  pacifists,  "  de- 
featists," and  our  whey-blooded  academic  philosophers 
who  drivellingly  confound  Teutonic  kuUur  with  civili- 
sation, to  tell  us  what  they  think  would  happen  to  our 
banks  were  the  Government  to  be  hustled  into  a  peace 
on  German  lines.  Supposing  these  dreich  preachers  of  a 
sham  humanitarianism  got  their  "  conference  between 
democracies  "  tc^ether,  and  persuaded  our  delegates 
to  surrender  to  the  arrogant  Teutonic  assertors  of  their 
"  right  "  to  universal  domination,  put  them,  in  short, 
into  the  same  ignominious  position  that  Russia  has  been 
betrayed  into  by  the  Bolsheviks,  do  they  think  our 
banks  would  be  able  to  repay  the  ;^i  ,600,000,000  of 
deposits  they  owe?  Oh  no.  There  is  not  a  bank  in 
the  country  which  could  keep  its  doors  open  for  a  week 
were  any  such'  peace  arranged  as  our  "  defeatists  "  plot 
for.  A  peace  of  surrender  would  at  once  knock  the 
bottom  out  of  all  that  constitutes  the  security  for  our 
war  debt.  Because  this  is  so,  there  is  no  description 
of  unpatriotic  betrayal  so  despicable  as  that  of  these 
people,  who,  with  their  reverence  for  everything  Ger- 
man, their  worship  of  the  crime-founded  Hohcnzollern 
Empire,  and  their  veneration  for  a  kultur  which  is  the 
very  antithesis  of  true  civilisation,  seek  to  befog  the 
Issues  and  beguile  us  to  our  ruin. 

Let  the  banks  who  wish  to  do  so  amalgamate  under 


February  9,  1918. 


tlbe  Jnvestors'  TRcptew, 


145 


reasonable  restrictions  calculated  to  safeguard  public 
and  national  interests.  It  would  be  ungracious,  nay, 
ungrateful,  to  hinder  them,  for  by  the  help  of  our  banks, 
and  by  that  alone,  is  this  country,  this  empire,  and 
most  of  its  Allies,  able  to  go  on  with  the  war,  and 
carry  it  to  a  successful  conclusion.  And  when  the 
war  does  end,  let  us  insist  once  again,  by  the  help  of 
our  banks,  and  that  alone,  can  we  hope  to  stand  up  to 
our  difficulties,  and  gradually  to  restore  our  industries, 
our  trade  abroad,  and  all  our  national  life  to  its  old 
channels,  channels  cleansed,  enlarged,  and  better  con- 
trolled and  organised  than  ever  they  were  before.  Our 
banks  can  alone  furnish  the  means  by  which  we  can 
hope  to  escape  from  a  long  twilight  cif  hardship  and 
become  able  to  work 'ourselves  free  from  all  danger  of 
a  return  to  the  barbaric  life  of  far-off  days.  We  lately 
saw  somewhere  a  picture  of  the  Marquis  of  Bute,  seated 
on  a  plough,  and  guiding  it  over  his  own  lawns  at 
Cardiff  Castle.  Make  a  traitor  peace  now,  and  many  a 
peer  might  have  to  be  thankful  to  live  by  the  spade 
because  without  the  means  to  buy  a  plough. 


Russia  Devoured  by  the  Vermin  "Secret 
Police"  of  the  Vanished  Tsardom. 

News  from  Russia  seems  to  grow  blacker  and 
blacker,  but  let  us  not  be  too  depressed  thereby  or  too 
tearful  lest  the  triumph  of  the  Bolsheviks  should  be 
altogether  as  it  seems.  Who  are  these  Bolsheviks? 
Uefore  the  downfall  of  Tsardom  at  least  75  per  cent, 
of  those  who  professed  this  form  of  anarchism  or 
levelling  down  were  members  of  the  secret  police.  That 
police  represented  probably  the  most  degraded  and 
degrading  instrument  of  oppression  that  ever  existed  in 
any  country  pretending  to  be  civilised.  Originally 
created  as  a  guaW  to  the  Sovereign,  a  nest  of  spies, 
it  soon  became  the  Sovereign's  master,  and  spread  its 
malign  influence  not  only  into  every  part  of  Russia,  but 
into  most  parts  of  the  civilised  world.  Crimes  were 
often  instigated  by  it,  and  it  was  the  deadly  foe  of 
every  honest  man  who  tried  to  serve  his  country.  We 
have  always,  for  example,  had  a  feeling  that  the  bombs 
which  killed  Alexander  II.  were  manufactured  and 
thrown  at  the  instance  of  this  secret  police,  if  the  crime 
was  not  actually  perpetrated  by  members  of  that  wholly 
irresponsible  band  of  knaves.  The  Russian  people  had 
no  motive  to  slay  this  man,  the  most  humane  and  en- 
lightened of  all  the  Romanoffs,  whereas  the  secret 
police  had  every  reason  to  hate  him,  and  to  wish  him 
out  of  the  way.  All  honest  men  who  tried  to  reform 
administration  in  Russia  were  the  enemies  of  these 
thieves,  delators,  concocters  of  assassination  plots, 
manufacturers  of  false  evidence,  and  instigators  and 
perpetrators  of  every  description  of  crime.  Alexander 
was  striving  to  free  and  uplift  his  people,  to  educate 
them,  to  endow  them  with  land,  and  to  open  careers  for 
them.     Therefore,   he  had  to  be  destroyed. 

What  are  the  Bolsheviks  of  to-day  if  not  a  resurgence 
of  this  same  secret  police  masquerading  as  pure  patriots, 
as  opponents  of  all  oppression,  advocates  of  confiscation 
of  the  land  and  of  every  description  of  property  ;  in 
reality,  an  unclean  horde  of  thieves.  It  has  not  ap- 
parently been  proved  as  yet  that  Lenin  himself  was 
ever  a  member  of  the  secret  police,  or  Okhrana,  as  it 
was  called,  but  the  archives  of  its  head  office,  seized 
by  the  Provisional  Government  of  Russia  in  the  early 
days  of  the  Revolution,  have  brought  to  light  his  inti- 
mate association  with  some  of  the  most  notorious  black- 
guards of  the  whole  swarm.  And  it  is  notorious  that 
while  other  men  were  persecuted,  hunted  down,  and 
driven  out  of  Russia,  or  sent  to  Siberia.  Lenin  always 
went  unharmed,  not  only  through  Russia,  but  to  and 
fro  in  Germany.  We  have  no  moral  doubt  whatever 
that  the  secret  police  is  at  the  core  of  the  present 
tyranny  in  Russia,  and  little  that  it  is  the  master  of 
both  Lenin  and  Trotsky. 

And  this  gives  us  hope  that  the  tyrannv  will  not  last 
long.  The  real  Russia  is  for  the  time  being  obscured 
behind  a  riflf-rafif  of  human  scum  comparable  to  nothing 
in  history.  Even  the  worst  of  the  Terrorists  in  the 
French  Revolution  were  men  of  ideals,  and  often  of  a 


character  superior  to  those  now  endeavouring  to  de- 
stroy all  that  is  noble,  and  to  steal  all  that  is  movable, 
wherever  they  have  the  chance  or  the  power  in  Russia. 
But  there  must  be  forces  gathering  behind  the  screen 
which  will  presently  emerge  and  sweep  away  this 
malignant  force  which  is  the  negation  of  every  senti- 
ment of  honour  and  humanity,  whose  very  best  efforts 
at  reform  are  tainted.  '^ 

Great  play  has  been  made  by  the  orators  put  forward 
by  the  controlling  ruffians  of  their  deterrriination  to 
gratify  the  peasants'  thirst  for  land,  and  the  pea.sants 
long  ago  would  have  had  their  share  of  the  land  if 
Alexander  II.  had  been  allowed  to  live.  Many  Russian 
landowners,  m.oreover,  have  been  only  too  willing  to 
gratify  the  peasants'  desires  to  the  fullest  practicable 
extent  if  only  it  could  be  done  in  the  way  that  would 
really  make  them  free.  That  there  are  bad  landowners 
in  Russia,  as  elsewhere,  is  true,  but  there  are  many 
among  them  whose  lives  and  whose  attitude  towards 
the  peasant  warrant  us  in  believing  that  if  only  some 
form  of  Government  could  be  established  through 
which  they  could  institute  reforms  they  would  prove 
to  be  as  eager  as  the  peasants  themselves  to  see  justice 
and  equity  prevail  in  the  distribution  of  the  soil.  Let 
any  one  who  doubts  turn  to  the  volume  of  Memories 
issued  some  time  ago  by  Madame  Novikoff,  and  read 
there  the  story  of  her  son's  conduct  on  his  estates,  and 
then  remember  that  he  was  by  no  means  alone  in  his 
enlightened  humanity,  that  throughout  Russia,  as  the 
history  of  all  the  struggles  for  freedom  of  the  past  half- 
century  at  least  have  shown,  many  men  penetrated  with 
similar  ideals  have  been  ready  and  willing  to  give  effect 
to  them.  We  must  not  despair,  then,  of  Russia  be- 
cause the  thieves  are  in  power  there,  or  because  they 
have  declared  themselves  the  fixed  and  "  permanent  " 
Government  of  the  country.  The  cool  insolence  of  that 
assumption  should  surely  herald  their  downfall. 


By-the-Way  War  Notes. 

One  more  Allied  Conference  has  come  and  gone  in 
France,  and  again  "  universal  and  complete  agree- 
ment "  has  been  proclaimed  as  the  outcome.  We  are 
al§o  told  that  the  scope  and  powers  of  the  Inter-Allied 
War  Council  sitting  in  Versailles  has  been  extended, 
without,  however,  introducing  a  generalissimo.  We 
willingly  believe  and  hope,  for  we  are  convinced  that 
every  man  is  earnestly  striving  to  do  his  duty.  But  we 
hope  that  agreement  does  not  imply  an  immediate 
offensive  on  our  part-  There  seems  to  us  no  valid 
reason  for  the  Allies  to  rush  into  the  trap  the  cunning 
Prussian  is  setting  for  them.  For  us  to  begin  a  great 
offensive — costly,    immeasurably    costly,    in    men    and 


THE  LONDON  CITY  AND 
MIDLAND  BANK  Lmited 

will  supply  all  information  respecting 

NATIONAL 
WAR  BONDS 

and  invites  investors  to  make  their 
applications  for  the  same  at  any  of  its 
ofi  ices  throughout  the  United  Kingdom 


HEAD    OFFICE:    5,  THREADNEEDLE     STREET, 
LONDON,    EX. 2. 


B^ 


146 


<Ibe  investors'  "RevleWi 


February  9,  1918. 


material,  above  all  in  men — before  the  Americans  have 
had  time  to  array  their  strength — and  a  mighty  strength 
it  will  be — by  our  side,  would  be  to  play  the  game  of 
Ludendorff  and  Bully  Hindenburg.  Naturally,  with 
Russia  out  of  the  way,  and  America  not  yet  in  the 
field,  these  master  brigands  would  like  to  try  issues 
with  the  French  and  ourselves  while  yet  there  is  time. 
The  attempt  would  not  be  to  their  profit,  we  believe, 
even  if  we  did  walk  into  their  parlour,  but  it  would 
mean  a  ghastly  waste  of  men  wc  have  no  right  to  sacri- 
fice, especially  when  the  war  is  really  going  so  well  for 
us  everywhere,  and  not  least  on  just  this  Western 
front. 

"  How  on  earth  do  you  make  that  out?  "  the  evcr- 
ready-to-croak  patriot  demands.  It  is  not  difficult  to 
explain,,  at  least  not  to  those  who  are  not  armchair 
strategists  of  the  Carmelite  Street  order,  those  people 
who  are  ever  looking  for  "  great  battles,"  and  who 
carry  on  campaigns  on  the  assumption  that  our  armies 
always  move  along  asphalted  highways  on  roller  skates 
to  outflank  the  enemy.  Whether  by  the  wisdom  of  our 
leaders,  or,  as  the  thoughtful  community  becomes  more 
and  more  disposed  to  think,  by  the  impulsion  of  Pro- 
vidence, we  have  been  brought  along  a  path  that  is 
leading  us  to  the  surest  of  all  triumphs,  to  the  enemy's 
complete  exhaustion.  "  We  want  a  peace  by  arrange- 
ment," say  our'pacifists,  or  "  defeatists."  "  We  wish 
to  attain  disarmament  by  international  agreement," 
they  monotonously  repeat.  It  is  a  benevolent  dream, 
but  neither  peace  by  agreement  nor  disarmament  can 
be  attained  except  by  the  subjection  of  the  enemy.  That 
subjection  is  being  accomplished  now.  Volunteer  mili- 
tary guides  in  the  Press  are  always  talking  to  us  about 
our  armies  being  "  held  up  "  by  those  of  the  enemy. 
The  exact  reverse  is  the  fact.  Everywhere  except  on 
the  Russian  front,  which  does  not  at  present  concern  us, 
the  enemy  is  "  held  in  "  by  us,  so  that  his  dashes  hither 
and  thither  into  fresh  territories  are  rarelv  more  valu- 
able to  him  than  food-collecting  sorties  by  the  besieged. 
Even  on  the  Italian  front  the  Austrians  are  now  be- 
sieged, and  not  all  the  braggadocio  and  insolent 
swagger,  not  all  the  exhibitions  of  a  shamelessness  in 
rapacity,  can  disguise  the  fact. 

Whines  more  and  more  intermingle  with  the  trucu- 
lence.  Is  it  not  the  fact  that  in  Germany  to-day  the 
people  have  little  food  and  less  clothing,  and  along  the 
Franco-Belgian-British  front  is  it  not  the  case  that  we 
are  playing  the  part  of  besiegers  who  have  the  mastery? 
Are  we  not  even  in  this  "  winter  quarters  "  period  of 
the  war  skilfully  and  unceasingly  harassing  the  enemy 
by  our  artillery  and  aeroplane  attacks?  Is  not  our  re- 
taliation from  the  air  inflicting  such  punishment  upon 
the  Prussian  lines  of  communication  and  assemblages  of 
artillery  and  human  gun  fodder  as  will  make  a  great 
offensive  on  their  part  more  and  more  difficult  the 
longer  we  go  on  ?  Nobody  is  making  money  out  of  the 
war  in  Germany,  except  the  Krupps,  the  Thyssens,  the 
Rathenaus,  and  other  industrial  associates  in  oppres- 
sion, and  soon  even  these  will  find  that  all  their  gains 
have  really  been  loss.  The  beleaguered  foe  is  now 
effectually  hemmed  in  and  hungry  enough  even  to  try, 
submissive  drudge  though  he  be,  to  rebel. 

"  The  strikes  are  over,  and  the  men  everywhere  have 
resumed  work,  or  about  to  do  so."  This  summarises 
the  official  news  from  Berlin.  Probably  enough  it  is 
true.  The  strikes  may  have  been  suppressed,  but  the 
hunger  remains,  and  neither  bullets  nor  the  knives  and 
bludgeons  of  the  brutalised  tyrants  can  fill  the  bellies 
of  the  hungry  multitude.  Hunger  is  chronic  all  over 
the  two  abandoned  Empires,  insurmountable  and  on  the 
increase,  thanks  to  the  effectiveness  of  our  blockade  by 
sea  and  land.  We  are  still  asked  now  and  then, 
"When  do  you  think  the  war  will  end?  "  The  answer 
might  have  been  easy  could  we  have  been  sure  that  the 
hunger-gnawed  populations  of.  the  Habsburg  and 
Hohenzollern  dominions  had  the  power  and  the  means 
to  maintain  strikes  until  their  taskmasters  were  reduced 
to  impotence.  Still  more  confident  of  an  early  peace 
might  we  have  been  could  we  have  nourished  the  hope 
that  the  troops  of  the  tyrants  would  have  refused  to 
fire  on  their  kindred,  but  thus  far  they  seem  to  have 


shown  not  the  least  sign  of  readiness  to  behave  like 
ordinary  human  beings;  To  all  appearance,  the  Hohen- 
zollern Kaiser's  injunction  to  his  troops  that  they  must 
be  ready  to  slay  their  fathers  and  mothers  at  his  com- 
mand is  unquestioningly  accepted  to-day  as  the  Prus- 
sian soldier's  rule  of  conduct.  These  things  being  so, 
what  use  is  there  in  trying  to  guess  when  this  war  will 
end?  It  will  last  until  German  wealth  and  German  man- 
hood have  both  been  consumed. 

The  strikes  themselves  afford  us  no  guidance. 
Sporadic  demonstrations  of  the  sort  which  seem  to  have 
been  spurting  up  all  over  Germany  can  do  nothing 
effective  to  destroy  the  dominance  of  the  military  task- 
masters, and  how  a  universal  "  down-tools  "  protest  is 
to  be  brought  about  we  cannot  imagine.  The  Prussian 
war  chiefs  and  their  capitalist  allies,  now  eagerly  de- 
manding that  all  stolen  or  coveted  property  deemed" 
still  within  reach  of  their  thievish  grasp  should  be  laid 
hold  of,  have  taken  care  always  that  the  German  work- 
man should  be  kept  in  slavery.  As  a  tool,  useful  to 
produce  wealth  for  them,  they  saw  to  it  that  the  auto- 
maton was  cared  for,  pensioned— oh,  most  economically 
— when  too  old  to  work,  given  doles  of  money  and  medi- 
cine when  sick,  and  otherwise  well  herded,  but  the  work- 
man was  never  allowed  a  chance  to  combine  and  accu- 
mulate independent  funds.  The  men's  savings  had  to  be 
under  the  control  of  officialdom.  Therefore  nothing  in 
the  nature  of  "  a  strike  fund  "  is  available  for  the 
hungry  and  discontented  German  working  man,  and  we 
must  not  build  hopes  on  a  democracy  within  either 
empire  becoming  strong  enough  to  overturn  the  tyrants. 
There  is  no  real,  live  democracy  in  either  of  them,  and 
it  shows  wilful  ignorance  on  the  part  of  our  doctrinaires 
to  profess  a  belief  that  masses  of  slave  population  can 
provide  solid  foundation  for  an  "  international  agree- 
ment "  between  peoples  for  any  purpose  whatsoever. 

Let  us  have  done  with  drivel  that  is  traitorous.  Ours 
is  a  different,  a  better  occupation.  We  must  prosecute 
the  war  with  a  singleness  of  mind  that  shuts  out  all 
speculations  as  to  what  one  transient  functionary  may 
be  aiming  at  in  his  speeches,  or  what  the  military 
tyrants  would  really  be  glad  to  accept  if  approached  in 
a  friendly  spirit  of  give  and  take.  There  can  be  no 
"  give  and  take  "  with  Prussia.  On  every  opportunity 
the  Pan-Germanists,  who  are  the  all-compelling  ex- 
ponents of  Prussian  ambition,  break  through  the  screen 
of  sophistry  with  which  the  puppet  functionaries  deluge 
us,  and  their  language  is  always  the  same,  whether 
the  speaker  be  a  Krupp,  a  von  Bohlen,  a  Michaelis,  a 
Tirpitz,  a  Delbriicke,  a  Kuhlmann,  or  any  "  sword- 
rattler  "  among  the  chief  slaughtermen  themselves,  thej 
tell  us  that  they  still  mean  to  be  our  masTers  and  the 
world's.  William  the  Insane  loses  no  opportunity  of. 
declaring  that  God  and  he  have  the  conquest  of  Eng- 
land, and,  through  England,  of  the  world,  in  hand,  and 
are  winning  it.  His  son,  the  Crown  Prince,  more 
light-hearted,  still  takes  the  war  as  "  good  fun,"  and 
every  one  of  them  flatly  refuses  to  surrender  Belgium, 
to  give  back  Alsace-Lorraine  to  France,  or  to  take  the 
hand  off  any  of  those  contiguous  lands  full  of  minerals. 
The  Habsburgs  still  aim  at  the  obliteration  of  Serbia 
and  Rumania  and  the  domination  of  the  Balkans.  Con- 
stantinople is  to  be  the  capital  of  a  great  united  Teu- 
tonic Empire,  instead  of  Vienna  or  Berlin,  and  Bulgar,. 
Greek  and  Turk  are  to  become  vassals  of  that  empire, 
which  would  soon  extend  over  all  Syria  and  Asia 
Minor  and  onwards  eastward  and  southward  towards 
Persia,  India,  and  all  the  continent  of  Africa.  That  is 
but  an  outline  of  the  Prussian  dream  of  universal  con- 
quest, which  is  adhered  to  to-day  as  tenanciously  as  if 
unbroken  success  had  attended  the  Prussian  armies 
throughout  the  three  and  a-half  years  of  war.  Has 
the  world  every  witnessed  such  conceit? 

How  are  we  to  negotiate  with  people  of  this  kind? 
There  can  be  no  possible  treaty  made  with  them  which 
does  not  imply  our  surrender,  and  we  are  not  going 
to  surrender,  we  are  wearing  the  enemy  down  to  com- 
plete discomfiture.  Our  "  defeatists  "  babble  just  as 
fatuously  about  "disarmament."  Well,  the  war  is 
providing  for  disarmament  better  than  any  number  of 
Prussian   scraps  of  paper  could.      -■Ml  nations  will  be 


February  9,  1918. 


CTbe  5nve8tor6'  IReview, 


147 


too  poor  to  be  able  to  support  masses  of  professional 
man-slayers  when  the  war  ends,  the  two  brigand  em- 
pires f>oorest  of  all.  The  tyrannies  of  Central  Europe, 
headed  and  controlled  by  the  Prussian  savage,  are 
now  busy  digging  their  own  graves.  The  great  assault 
is  predicted  for  next  Friday.  We  hope  it  may  come 
then,  and  be  the  beginning  of  annihilation  for  the 
Hohenzollem   monster  of  infamy. 

There  is  still  no  abatement  of  the  submarine  scourge. 
Last  week  2,339  vessels  arrived  and  2,373  ^^f*  our 
ports,  or  4,712  in  all,  and  of  these  shipps  10  of  1 1.600 
tons  gross  and  over  were  sunk  by  mines  or  torpedoed. 
Five  smaller  vessels  were  also  sent  to  the  bottom,  be- 
sides 4  fishing  vessels,  while  10  ships  were  unsuccess- 
fully attacked,  the  return  of  13  in  all  being  made  up 
with  3  ships  attacked  without  success  in  the  week 
ended  January  26.  Altogether,  therefore,  the  week's 
losses  were  19,  or,  excluding  the  fishing  vessels,  15, 
the  same  number  as  in  the  preceding  week,  and  one 
above  the  average  weekly  sinkings  for  the  month  of 
November.  Some  of  the  worst  of  the  sinkings,  more- 
over, have  occurred  close  to  our  own  coasts,  in  the 
Irish  and  English  Channels,  and  obviously  there  is 
much  to  be  done  yet  before  this  loathsome  piracy  has 
to  be  considered  at  an  end.  We  are  going  to  end  it 
all  the  same,  and  the  longer  the  human  sharks  of  the 
sea  persist  in  their  crimes  the  greater  will  their  punish- 
ment be,  not  necessarily  the  punishment  by  arms  and 
enforcement  of  indemnities,  though  these  will  not  be 
wanting,  but  by  the  slow  working  and  all-pervading 
blight  of  avoidance  and  ostracism,  which  will  mate  life 
hard  in  every  land  and  for  many  a  year  for  the  German 
peoples.  Nearly  15,000  dd'enceless  civilians  of  ours 
have  been  killed  exultingly,  in  cold  blood,  by  the  Prus- 
sian sea  and  air  assassins  since  the  war  began. 


Insurance    News. 


A  realised  surplus   of  ^374,800  is   disclosed  in  the 
valuation  return  of  the  National  Pi  evident  Institution 
for  the  five  years  to  November  20  last,  and  it  is  pro- 
posed to  carry  the  whole  amount  forward,  making  pro- 
vision for  the  payment  of  interim  bonuses  in  respect  of 
life  and  endowment  policies,  which  may  produce  claims, 
or  will  mature  before  the  close  of  the  next  quinquen- 
nium,  at  half  the  rate  of  reversionary  bonus  declared 
at  the  end  of  1912.     Apart  from  the  eiiect  of  war  con- 
ditions, the  surplus  would  have  been  ^sufficient  to  en- 
able the  board  to  declare  the  same  rate  of  bonus  as  in 
1912,  and  to  carry  forward  a  substantially  increased  un- 
appropriated balance.     As  explained  by  the  actuary,  the 
divisible  surplus  was  arrived  at  by  means  of  what  he 
calls  a  "  fair  weather"  valuation — thil  is  to  say,  the 
actuarial  liabilities  have  been  based  on  the  same  assump- 
tion, as  regards  the  future  rate  of  mortality  and  the 
nett  rate  of  interest  likely  to  be  realised,   as  in  1912. 
But  as  no  allowance  has  been  made  for  further  inroads 
on  the  profits  on  account  of  direct  losses  owing  to  the 
premature  death  of  members  on  active  service,  further 
increased  taxation,  depreciation,  and  so  on,  the  actuary 
wisely  advised  that  no  distribution,  otherwise  than  by 
way  of  interim  bonuses,  should  now  be  made.     The  nett 
new  business  of  the  five  years  amounted  to  ;^2,948,723, 
against  ;^3, 183,439  f'^''  the  previous  five  years,  with  new 
annual  premiums  of  ;^i36,q59,  against  ;^i36,369.    Ex- 
penses remained  at  the  very  moderate  figure  of  about 
10   per  cent.,  while   the  total  death  claims  were  only 
;^2i,ooo  in  excess  of  those  paid  in  the  previous    five 
years.      The  assurance   fund    stands    at    ;£'7, 117,314, 
Stock  Exchange  securities  having  been  written  down  to 
market  values  as  at  November  20,  1917. 

The  directors  of  the  Century  Insurance  Co.  have  inti- 
mated to  their  shareholders  that  they  have  under  con- 
sideration a  proposal  from  an  old-established  insurance 
office  to  acquire  the  whole  of  their  shares  at  a  price 
somewhat  in  excess  of  present  market  quotations.  The 
-shares  are  of  the  denomination  of  £a  ios.,  with  los.  a 
share  paid  up,  and  the  last  business  reported  in  them 
was  at  just  over  £6  ;  the  price  mentioned  in  connection 
with  the  proposed  fusion  is  £6  5s.     The  Century,  which 


dates  from  1885,  and  has  an  authorised  capital  of 
;^9oo,ooo,  of  which  ;^3 15,000  has  been  subscribed,  and 
;£,'35,ooo  paid  up,  transacts  most  forms  of  insurance, 
and  has  had  a  successful  history.  Dividends  for  the 
five  years  to  1916  were  32^  per  cent.,  and  on  account 
of  1917  12|  per  cent,  was  paid  in  September.  The 
head  office  of  the  company  is  in  Edinburgh. 
""Another  office  which  is  contemplating  an  amalgama- 
tion scheme  is  the  Clergy  Mutual  Assurance  Society, 
but  in  this  case  before  an  amalgamation  can  be  arranged 
the  consent  of  the  policyholders  must  be  secured.  This 
office,  which,  as  its  title  indicates,  is  run  oh  mutual 
lines,  has  enjoyed  an  exceptionally  good  bonus  record 
up  to  the  time  of  the  outbreak  of  war,  and  its  expense 
ratio  barely  exceeds  7  per  cent,  of  its  premium  income. 
A  circular  issued  by  the  directors  refers  to  the  change 
in  the  basis  of  the  last  valuation  from  2-^  to  3  per  cent., 
and  also  to  the  falling  off  in  the  volume  of  new  busi- 
ness, and  it  is  admitted  that  the  passing  of  the  bonus 
in  1916  has  undoubtedly  adversely  aftected  the  society. 
The  question  thus  arises  whether  by  amalgamation  or 
combination  with  another  office,  preferably  an  office  in 
which  the  same  advantages  of  low  rates  of  premium 
and  expenses  of  management  can  be  secured,  increased 
strength  would  not  be  obtained.  The  Clergy  Mutual 
has  a  fine  connection,  and  funds  amounting  to  over 
four  millions,  and  there  are  not  many  mutual  offices  of 
the  same  description. 

It  now  transpires  that  it  is  the  London  Life  Associa- 
tion that  proposes  to  join  forces  with  the  Clergy  Mutual, 
and  an  arrangement  for  the  two  offices  to  be  associated 
together  under  one  management  has  been  provisionally 
agreed  to.  The  proposed  arrangement  provides  that 
the  London  Life  shall  re-assure  one-fourth  of  its  new 
business  with  the  Clergy  Mutual,  which  would  not, 
after  the  arrangement  came  into  force,  issue  further 
direct  policies.  ITie  London  Life  of  late  years  has 
shown  great  progress,  and  has  always  secured  business 
at  a  wonderfully  cheap  cost,  its  expense  ratio  being  only 
about  4.5  per  cent.  It  is  part  of  the  arrangement  that 
the  Clergy  Mutual  expenses  of  management  shall  be 
limited,  in  respect  of  its  existing  policies,  to  5  per  cent, 
of  the  premium  income  in  any  year,  and  5  per  cent,  of 
the  annuities  payable,  and  in  respect  of  reassurances 
from  the  London  Life,  the  same  average  rate  per 
annum.  The  proposed  arrangement  should  prove  a 
thoroughly  good  one  for  both  offices. 

A  premium  income  of  ;^52,6o7  was  earned  by  the 
Essex  Union  Insurance  Co.  last  year,  of  which  ;^25,335 
was  absorbed  by  losses  paid  and  outstanding,  giving  a 
loss  ratio  of  only  48.2  per  cent.  Expenses  amounted 
to  ;^io,834,  or  20.6  per  cent,  of  the  premium  income, 
and  with  interest,  and  ;^6,758  brought  in,  the  final 
balance  was  ;^25,666,  the  balance  at  credit  of  revenue 
account  working  out  at  48.78  per  cent,  of  the  premium 
income.  Capital  and  reserves  stand  at  ;^78,oi7,  and 
the  total  assets  at  .■£'129,605,  a  large  percentage — 
;£78,898— of  the  total  funds  being  invested  in  first- 
class  British  Government  securities.  The  directors  do 
not  recommend  a  dividend,  but  carry  forward  the  whole 
amount  available. 


A  further  loan  of  oveT  ;^3 1,000,000  has  been  advanced  to 
France  by  the  Washington  Government.  This  increases  its 
total  advances  to  the  Allies  to  ;^g37,ooo,ooo,  and  the  end  is  not 
yet. ,^ 


AUSTRALIAN 
MUTUAL  PROVIDENT 

Estd.         SOCIETY.         'S^S- 

The    Largest    Mutual   Life   OflSce   in    the    Empire. 

Funds,  £37,000,000.  Annual  Income  £4,700,000. 

MODERATE     PREMIUMS. 

LIBERAL     CONDITIONS. 

WORLD-WIDE     POLICIES. 
Every  Year  a  Bonus  Year.    Whole-life  Policies,  20  years  in  force,   show 
average  increase  of  the  sum  assured  by   Bonus  exceeding  50  p«r  oent. 
Endowment  Assurance  Results  also  Unsurpassed. 

37,Thpeaclneedle  St.,  London,  E.C.  2. 


148 


^be  Jnvestors'  IRevlew. 


Febri;arv  9,  1918. 


SGOniSH  UNION  &  NATIONAL 

msURAIICE  COMPlNy. 

ESTABIjISHKD     2821. 

ASSETS    exceed    £1 1 ,000,000. 

FIRE  (INCLUDING  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  CUSS  BREAKAGE,  TRANSIT  OF 
SECURITIES,  FIDELITY,  PROPERTY  OWNERS'  LIABILITIES,  HORSE  DRIVING 
ACCIDENTS.  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh:  33,  St.  Andrew  Square. 
London:  S.  Walbrook,  E.C.  i,  and  i,  St.  James'  St..  S.W.  1. 


xz  ce;  ixr  31  :x: 


ASSURANCE   COMPANY 
LIMITED. 

Establish  F.D- 1 782. 

Head  Office:  PHSNIX  HOUSE,  KING  WILLIAM  STREET,  LONDON,  E.G.  4. 

Total  Assets  Exceed  £17,000,000. 

Claims  Paid  Kxceed  £98,000,000. 

Chairman— Rt.  Hon.  LORD  GKORGE  HAMILTON,  I'.C,  G. C.S.I 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

Loss  of  Profits  following  Fire,  Workmen's  Compensation,  Fidelity  Guarantee, 
Burglary,  Trustee  and  Executor,  &c. 
Prospectuses  and  Proposal  Forms  mav  be  obtained  on  application  to  any  of 
the  Branch  Offices  or  Agencies,  or  to  the  Head  Offices 

General  Manager        -        SIR  GERALD  H.  RYAN. 


ROYAL  EXCHANGE  ASSURANCE. 

Incorporated  A. D.  1720.  Governor:  Vivian  Hugh  Smith, Esq. 

FIRB.  lilFE.  SEA.  ACCIDBNTS.  MOTOR-CAR.  PI/ATE 
GLASS.  BURGLARY.  ANNUITIES.  FIDELITY  GUARAN- 
TEES. EMPLOYERS  LIABILITY.  LIVE  STOCK.  THIRD 
PARTY.  LIFT,  BOILER  AND  MACHINERY.  TRUSTEE 
AND     EXECUTOR     BUSINESS. 

Th^leire'tary.  }  "«»^  Office-ROYAL    EXCHANGE.    LONDON,  E.C.  3- 

THE  LIVERPOOL   &  LONDON  &  GLOBE 

INSURANCE    CO.,    LTD. 

FIRE.        LIhE.        ACCIDENT.        MARINE. 
Total  Assets  exceed    ...    £14,800,000 
Total  Claims  Paid  oyer      -       -    £86,000,000 


Head  Office: 
1,  Dale  Street,   Liverpool. 


London  Chief  Office: 
1,  Cornhill,  E.G.  3. 


Money    and    Credit    Notes. 


Bank  Rate  5  per  Cent.    (Reduced  from  5^  percent,  on 
Thursday,  April  5,  1917.) 


Norfolk  House,  Friday  Evening. 

Looking  at  the  speed  with  which  revenue  is  being 
collected  it  would  have  been  proper  to  look  for  very 
scarce  credit  in  the  open  market.  Instead  of  that  money 
has  been  comfortably  abundant  throughout  the  week, 
and  only  on  Thursday  did  supplies  seem  to  diminish  a 
little,  so  3I  per  cent,  has  been  the  full  rate  for  day-to- 
day money  up  to  yesterday,  when  3!  was  asked  and  in 
many  cases  paid.  That  was  also  the  figure  for  seven- 
day  advances,  but  the  discount  quotations  remain  as 
before. 

The  explanation  is  probably  to  be  found  in  the  large 
amount  of  temporary  borrowings  resorted  to  by  the 
Treasury,  and  we  see  from  the  Bank  return  that  the 
credit  manipulating  operations  of  the  Treasury  have  kept 
the  open  market  supplied.  Public  deposits  are  up 
;^2,9o6,ooo  and  other  deposits  ;^2,86o,ooo,  or 
;^5,766,ooo  in  all.  Government  securities  are  only 
;^r,oi4,ooo  up,  but  other  securities  have  been  in- 
creased by  ;^5,oo4,ooo,  together  the  liabilities  being 
up  about  ;^6,oi8,ooo,  and  the  other  deposits  have  been 
strengthened  by  nearly  ;^3,ooo,ooo.  The  aggregate  of 
';^ 1 2 5, 504,000  is,  however,  ;^ioo,966,ooo  below  the 
figure  of  a  year  ago.  A  slight  decrease  of  ;^232,ooo 
has  occurred  in  the  reserve,  almost  entirely  due  to  ex- 
pansion of  the  note  circulation.  Owing  to  this  decline, 
and  the  increase  in  labilities,  the  proportion  of  the  re- 
serve to  these  has  shrunk  J  to  18J  per  cent.,  but  that 
is  5J  per  cent,  above  the  figure  of  a  year  ago.  Possibly 
enough  money  will  now  get  tighter,  but  we  cannot  be 


sure  of  the  market  following  its  normal  cour.se  in  these 
times. 

A  suggestive  correspondence  between  the  Chancellor 
of  the  Exchequer  and  the  Governor  and  Deputy- 
Governor  of  the  Bank  of  England  has  been  made  public, 
and  comes  opportunely  to  enforce  what  has  been  con- 
tinually advanced  in  these  columns  about  the  inconveni- 
ence of  what  wc  may  call  makeshift  borrowings  called 
"  temporary  "  loans.  Replying,  on  July  5  last,  to  a 
request  by  the  Chancellor  for  the  advance  during  the 
current  quarter  of  "  such  sums  as  might  Ix;  required  to 
carry  on  the  public  service,"  Lord  Cunliffe  and  Sir 
Brien  Cokayne  wrote  that  the  court  of  directors  desired 
them  to  call  the  Chancellor's  attention  to  the  amount 
which  has  already  been  advanced  on  the  credit  of  ways 
and  means,  and  to  convey  the  expression  of  their  hope 
that  he  would  reali'^c  the  inadvisability  of  an  increase 
in  these  advances,  and  their  earnest  desire  that 
measures  should  be  taken  for  repayment."  In  reply, 
Mr.  Bonar  Law  assured  the  directors  of  his  "  earnest 
desire  to  confine  such  advances  to  the  narrowest  pos- 
sible limits,"  but  at  the  beginning  of  the  current  quarter 
he  had  again  to  write  to  the  Governor  and  Deputy- 
Governor  begging  them  to  get  the  Bank  Court  "  to 
advance  during  the  current  year  such  amounts  as  may 
from  time  to  time  be  required  for  the  public  service  at 
such  rates  of  interest  as  may  from  time  to  time  be 
agreed,  regard  being  had  to  the  rates  currently  paid  by 
the  Bank  in  respect  of  their  borrowing  of  foreign  and 
domestic  money  respectiveh'. "  .'\nd  he  went  on  to 
suggest  that  the  advances  .should  be  made  either  on 
the  credit  of  ways  and  means  or  on  the  security  of 
Treasury  bills,  "according  as  might  be  arranged." 
No  limit  seems  to  have  been  put  to  this  borrowing,  and 
in  the  circumstances  none  could  be  put,  but  the  corre- 
spondence shows  that  the  directors,  as  was  natural, 
were  somewhat  nervous  as  to  the  effects  which  might 
flow  from  a  too  unrestrained  use  of  this  out-at-elbows 
sort  of  method  of  scraping  up  means  with  which  to 
carry  on  the  war. 

It  is  understood  from  inquiries  made  at  the  National 
Debt  Office  that  the  rates  quoted  for  the  issue  of 
Government  life  annuities  will  be  revised  next  week. 
The  interest  basis  will  be  raised  from  3!  to  4^  jjer  cent., 
which  will  bring  the  annuities  up  to  the  level  of  the 
yield  on  Consols  at  55^,  which  is  the  proper  rate.  The 
increase  will  mean  an  addition  of  over  los.  per  cent,  in 
the  income  to  \>e  derived  from  annuities,  and  will  un- 
doubtedly stimulate  their  sale,  and  in  addition  reduce 
the  National  Debt,  for  the  issue  of  an  annuity  involves  a 
corresponding  redemption  of  Consols.  The  reduction 
in  debt  becomes  effective  when  the  annuity  lapses  by 
effluxion  of  time.  Post  Office  annuities,  which  will 
also  be  increased,  are  slightly  cheaper  because  they 
are  paid  half-yearly  instead  of  quarterly,  as  is  done  in 
the  case  of  Debt  Office  annuities. 

The  special  borrowing  privileges  of  the  3J  per  cent. 
War  Loan  expire  on  March  i,  and  holders  who  have 
obtained  loans  from  the  Bank  of  England  up  to  the 
issue  price  of  95  at  a  rate  not  exceeding  i  per  cent, 
under  Bank  rate,  have  received  a  notice  demanding 
repayment  on  March  1.  This  is  not  unnatural  in  view 
of  the  fact  that  the  stock  stands  in  the  market  at  86. 
Members  of  the  Money  market,  who  took  an  excep- 
tionally large  amount  of  this  loan  for  patriotic  reasons, 
feel  that  they  have  not  been  very  well  treated.  They 
argue  that  those  who  subscribed  handsomely  to  the  first 
War  Loan  should  not  be  placed  in  a  worse  position 
than  those  who  came  forward  afterwards,  and  they  are 
suggesting  that  the  special  borrowing  privilege  should 
be  continued,  but  that  the  amount  of  the  advance  made 
by  the. Bank  should  be  restricted  to  the  market  value 
of  the  stock. 

New  regulations  have  been  made  by  the  Treasury 
under  Section  37  of  the  Finance  Act,  1917,  for  facilitat- 
ing transactions  in  Government  stocks.  They  provide 
that  stock  may  in  future  be  inscribed  or  registered  in 
the  name  of  a  trustee,  which  hitherto  has  not  been  the 
case.  They  also  provide  for  easier  methods  of 
transfer  in  the  case  of  stocks  held  by  corporate  bodies. 


February  9,   1918. 


XTbe  3nve8tor6'  "Kevtew. 


149 


|i 


ABRIDGED  PROSPECTUS. 

The  List  for  CASH  Applications  will  be  closed  on  Monday,  the 

nth   February.   1918,   and  for    CONVERSION    Applications   on 

Wednesday,  the  20th  February,  1918. 

New  South  Wales  Government 
5|7  Conversion  Loan,1922-1932. 


Offer  of  Conversion  to  Holders  of  £12,648,477  New 

South  Wales  Government  3^  %  Inscribed  Stock 

maturing  1st  September,  1918. 

PRICB    £100    PER    CENT. 

Interest  payable  1st  May  and  1st  November. 
Six  months'  Interest  payable  1st  November,  1918. 

Principal  repayable  at  par  on  the  1st  November,  1932,  the  Govern- 
ment having  the  option  of  redemption,  in  whole  or  in  part,  at  par, 
on  or  after  1st   November,  1922,  on  giving  three  months'  notice. 


The   Government   of    New    South  Wales  will  comply  with  the 

requirements   of   the    Colonial  Stock  Act    1900,  in  order  that 

Trustees    may    invest    in   this   Inscribed    Stock   subject   to   the 

restrictions  set  forth  in  the  Trustee  Act,   1893. 

THE  LONDON  COUNTY  AND  WESTMINSTER  BANK 
LIMITED  notifies  that  the  Government  of  New  South  Wales 
offers  to  the  holders  of  /12, 648, 477  New  South  Wales  Govern- 
ment 3J  per  cent.  Inscribed  Stock  due  1st  September,  1918  (ex 
the  dividend  due  1st  March,  1918),  conversion,  in  whole  or  part, 
into  an  equal  amount  of  New  South  Wales  Government  5f  per 
cent.  Inscribed  Stock,  1922-1932,  on  the  following  terms  : — 

Holders  to  receive  an  immediate  cash  payment  of  7s.  percent, 
(less  tax),  being   the  difference  between   £l  15s.,  the  interest 
on  the  3J   per  cent.   Stock,   and  £l  8s.,  the  interest  on  the 
instalments,    to    1st    September,    1918.      A   full    six   months' 
interest  will  be  payable  on  1st  November,  1918. 
Holders   of   the   3J    per   cent.    Stock   exercising    the    option 
to  convert  will  receive  preferential  allotment,  and  must 
lodge  the  prescribed  form  of  assent  with  the  Bank  of 
England,  EC.  2. 
The  Treasury  has  beto   consulted  under  the  notification  of  the 
ilSth  January,  1915,  and  raises  no  objection  to  the  Issue. 

New  South  Wales  Debentures  and  Stock  domiciled  in  London 
tare  not,  and  will  not  be,  subject  to  Income  Tax  in  New  South 
I  "Wales,  or  to  death  duties  in  that  State. 

The  Stock  will  be  inscribed  in  accordance  with  the  provisions 
[of  the  "  Colonial  Stock  Act,  1877,"  40  and  41  Vict.,  cap.  59,  in 
the  books  to  be  kept  by  the  London  County  and  Westminster 
Bank  Limited,  Lothbury,  and  will  be  transferable  at  that  Bank 
free  of  stamp  duty.  Interest  thereon  will  be  payable  by  Dividend 
Warrants,  wiich  will  be  transmitted  by  post  at  the  Sltockholder's 
.risk . 

The  London  County  and  Westminster  Bank  Limited  is 
authorised   to  offer  for  subscription  in  cash.   New  South  Wales 

I  Government  5J  per  cent.  Debentures,   1922-1932  (convertible  into 
Inscribed  Stock  at  any  time  up  to  25th  June,  1918)  to  an  amount 
not  exceeding  the  total  of  the  3i  per  cent.  Loan,   1918,  including 
the  Stock  converted,  at  .^100  per  cent.,  payable  as  follows  ; 
£5   per  cent,   on  application. 
£95        „  „     10th  June,  1918. 

£100 

The  Debentures  which  will  be  issued  in  denominations  of  ;^100, 
.fSOO  and  ;!f  1,000,  will  be  payable  to  Bearer,  and  the  Interest 
thereon  will  be  paid  half-yearly  at  the  London  County  and  West- 
minster Bank  Limited,  41,  Lothbury,  E.C.  2,  by  Coupons  due  the 
1st  May  and  1st  November. 

The  revenues  of  the  State  of  New  South  Wales  alone  are  liable 
in  respect  of  this  Stock  and  the  Dividends  thereon,  and  the 
Consolidated  Fund  of  the  United  Kingdom  and  the  Commissioners 
of  His  Majesty  s  Treasury  are  not  directly  or  indirectly  liable  or 
responsible  for  the  payment  of  the  Stock  or  of  the  Dividends  thereon , 
or  for  any  matter  relating  thereto. — 40  and  41  Vict. ,  cap.  59,  sec.  19. 

Cash  applications  on  the  form  prescribed  will  be  received  at  the 
London  County  and  Westminster  iJank  Limited,  Lothbury, 
and  must  be  for  multiples  of  ;flOO,  and  be  accompanied  by  a 
deposit  of  £5  per  cent   on  the  nominal  amount  applied  for. 

Payment  in  full  may  be  made  on  the  27th  February,  1918,  or  on 
■any  subsequent  day,  under  discount  at  the  rate  of  4  per  cent,  per 
annum. 

Scrip  Certificates  to  Bearer  in  respect  of  Cash  applications  may 
be  obtained  on  or  after  March  18th,  1918 ;  a  Coupon  for  six 
months'  interest  payable  1st  November,  1918,  will  be  attached 
thereto.  The  Certificates  when  fully  paid  will  be  exchangeable 
for  the  definitive  Bonds  when  received  from  the  State,  or  they  may 
be  converted  into  Inscribed  Stock  without  charge  on  or  before  the 
25th  June,  1918,  in  which  case  the  Coupon  must  be  surrendered, 
and  the  amount  will  be  paid  by  Dividend  Warrant. 

Due  notice  will  be  given  when  the  Debentures  are  ready  for 
delivery 

Full  Prospectuses  can  be  obtained  at  the  London  County  and 
Westminster  Bank  Limited,  41,  Lothbury,  E.C.  2;  21, 
Lombard  Street,  E.C.  3,  or  at  any  of  the  Branches  of  the  Bank  ; 
at  the  Ulster  Bank  Limited,  Belfast,  and  Branches  of  that 


Bank,    and   of    Messrs.    R.    Nivison    and     Co.,    Bank    Buildings, 
Princes  Street,  E.C.  2. 

Forms    for    conversion    can    be    obtained    at    the    BANK    of 
England,  EC.  2. 
London  County  and  Westminster  Bank  Limited, 

Head  Office,  41,  Lothbury,  London,  E.C.  2,  2nd  Feb,  1918. 


No. 


This  Form  may  be  used. 
FORM  OF  APPLICATION  for 


vl   I. 


NEW    SOUTH    WALES    GOVERNMENT    Si    PER    CENT.    DEBENTURES 
1922-1932. 

Convertible  into  5i  per  cent.   Inscribed  Stock  at  any  time  up  to 

the  25th  June,   1918,  without  charge. 
To  the  LONDON  COUNTY  ^  WESTMINSTER  BANK  LTD. 
Gentlemen, 

:^  hereby  apply  for  £ 

say . : 

of  the  New  South  Wales  Government  5|  per  cent.  Loan,  1922- 
1932,  according  to  the  Prospectus  of  the  2nd  February,  1918,  and 
undertake  to  pay  £WQ  for  every  /lOO  of  Debentures,  and  to 
accept  the  same  or  any  less  amount  that  may  be  allotted  to 
me 

and  to  pay  for  the  same  in  conformity  with  the   terms    of 

us,  '^  ^  ■' 

the  said  Prospectus. 

enclose  the  required  deposit  of  £ , 

being  £5  per  cent,  on  the  nominal  amount  applied  for. 

Name • — 


Address  _ 


(Mr.,  Mrs.,  or  Miss) 


-February.   1918. 


N.B. — Applications  must  he  for  multiples  of  £100,  and  must 
be  accompanied  by  the  amount  of  Deposit  thereon. 


The  principal  feature  in  the  foreign  exchange  market 
has  been  a  further  rise  in  Scandinavian  rates.  Chris- 
tiania  is  2-j^  points  higher  at  14.85  kr.,  and  Stock- 
holm and  Copenhagen  'j^  higher  at  14.27J  kr.  and 
15.47J  kr.  respectively.  The  lira  has  depreciated  still 
further,  and  the  pound  sterling  will  now  purchase  40.95 
lire.  The  Spanish  exchange  has  moved  in  favour  of 
this  country  on  the  pending  arrangement  of  Anglo- 
French  credits,  and  the  rate  for  sterling  is  now  19.72J 
pesetas.  South  American  exchanges  have  moved  rather 
sharply  in  our  favour,  owing  to  the  shipping  position. 
Rio  has  fallen  7-32d.  to  13  i5-32d.,  and  Chile  7-32d.  to 

13   2I-32d. 

According  to  the  prospectus  of  the  New  South  Wales 
Conversion  Loan,  to  be  found  in  full  elsewhere,  the 
new  5f  per  cent,  inscribed  stock  to  be  given  for  the 
3J  per  cent,  similar  stock  falling  due  for  repayment  will 
be  a  trustee  security.  The  best  course  for  holders  of 
the  expiring  stock  is  to  convert.  They  get  par  for  par 
and  an  increase  of  2\  per  cent,  in  the  interest  on  their 
money.  Also  they  receive  an  immediate  cash  payment 
of  7s.  per  cent.,  less  tax,  being  the  difference  between 
£1  15s.,  the  interest  due  on  the  3*  per  cent,  stock,  and 
£1  8s.,  the  interest  on  the  instalments  paid  up  on  the 
new  stock  to  September  next.  A  full  six  months'  in- 
terest will  be  payable  on  November  i,  although  the 
stock  is  not  paid  up  until  June  10.  We  hope  that  all 
holders  of  the  expiring  stock  will  take  advantage  of 
this  offer,  and  that  it  may  not  be  necessary  to  draw 
in  money  from  fresh  investors  which  would  only  have  to 
be  disbursed  again  in  paying  off  the  old  stock.  It  is 
emphasised  that,  although  a  trustee  security,  the  re- 
venues of  New  South  Wales  alone  are  liable  for  this 
new  stock  and  the  dividends  thereon.  Applications  will 
be  received  at  the  London  County  and  Westminster 
Bank,  Ltd.,  where  the  books  of  the  New  South  Wales 
debt  are  kept.  Forms  for  conversion  can  be  obtained 
at  the  Bank  of  England. 

Silver. 

The  Silver  market  has  remained  in  a  quiet  state,  with 
very  little  business  going  on,  and  the  price  has  fallen 
Jd.  to  43d.  per  oz.  Mocatta's  circular  says  that  the 
supplies  from  New  Yo/rk  have  been  rather  more 
plentiful,  and  that  sellers  there  appear  to  be  less  confi- 
dent that  the  United  States  will  fix  the  price  for  the 
American  production  anything  like  so  high  as  was  re- 
cently talked  about.  The  Chinese  New  Year  approaches, 
and  little  business  is  expected  to  be  done  in  that  quarter 
for  the  present,  but  the  conjunction  of  circumstances 
appears  to  favour  lower  prices.     The  last  Indian  cur- 


15° 


XTbe  investors'  TReview, 


February  9,  1918. 


rency  returns  show  a  slight  increase  in  the  holdings  of 
rupees,  the  rapid  outflow  noted  by  us  last  week  having 
been  apparently  checked  for  the  moment. 


Applications  for  the  R.s.  60,00,000  Indian  Council  drafts 
offered  on  Wednciiday  amounted  to  Rs.  2, 21, 5:5,000.  Of  these 
Ks.  59,59,000  were  allotted  in  deferred  tran.sfer.s,  and 
Rs.  41,000  in  immediate  tran.sfers.  Tenders  for  bills  and  de- 
ferred transfers  at  is.  4  29-32d.  and  for  immediate  transfers 
at  13.  5d.  received  about  27  per  cent. 


BANK    OF    ENGLAND 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32.  for  the 
Week  ending  on  Wednesday,  February  6,  1918. 

tSSltE    DEPARTMENT. 
(. 


Notes  Issued 


75,927.550 


£75,927,550 


Government  Debt.. 
Other  Securities    .. 
Gold  Coin  and  Bullion 
Silver  Bullion 


£ 

11,015,100 
7,454,900 
57,477.550 

£75.927,550 


BANKING   DEPARTMENT. 


ProprletOTB'  Capital 
Rest 

Publlo  Depositsdnoludlng 
Bxofaeqner,  Savings 
Banks,  Commissioners 
of  National  Debt,  and 
Dividend  AcoouDts)  .. 

Other  Deposits 

Seven  Day  and  other  Bills 


£ 

14.553.000 

3.500.694 


41.143.292 

125.504.321 

10,476 


Dated  February  7, 1918. 


£184,711,783 


Government  Securities  ..  56.889,951 

Other  Securities    ..        ..  96,893,646 

Notes 29,796,235 

Gold  and  Silver  Colo     ..  1,131,951 


£184,711,783 
.  G.  NAIRNE,  Chief  Cashier 


BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
vrith  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


l.ast  year. 
Feb.  7. 

Jan.  30, 
IS18. 

Feb.  6, 
igi8. 

Increase. 

Decrease. 

£ 

Liabilities. 

£ 

f 

£ 

I 

3,502.268 

Rest 

3.481.837 

3,500,694 

18,857 

42,262,099 

Pub.  Deposits  .. 
Other    do. 

38,236,917 

41,143,292 

2,906,375 



226,469,916 

122,644,208 

125.504.321 

2,860,113 



27.941 

7  Day  Bills 

10,234 

10,476 

242 

_ 

Assets. 

Decrease. 

Increase. 

«I2,396,597 

Gov.  Securities. 

55. 875.951 

56,889,951 

1,014,000 

38,579.538 

Other       do. 

91,889.588 

96,893.646 



5,004,058 

35.839.089 

Total  ReieiTS.. 

31,160,657 

30,928,186 

232,471 

6,018,058 

6,018,058 

Increase. 

Decrease. 

€ 

£ 

£ 

£ 

i 

39.539,325 

Note  Circulation 

45,896,295 

46,131.3:5 

235,020 

56.9-;4,4'4 

Coin  and  Bullioo 

58,606,952 

58,609,501 

2,549 



13-3  P.c. 
54  „ 

Proportion 
Bank  Rate 

194  PC. 

5       .. 

l8-6p.o. 

5       .. 

•8  p.c. 

PUBLIC   INCOME  AND    EXPENDITURE. 

(For  7  days  ended  Feb.  2.) 


Revbnub. 


Customs  988,000 

Excise 453.000 

Estate,  &c.,  Duties  ..         ..       675,000 

Stamps 178,000 

Land  Tax  and  House  Duty  200,000 
Property  and  Income  Tax  16,007,000 
Excess  Profits  Tax  ..  ..  5,024,000 
Land  Values  ..        .,        ,,        — 

Post  Office 256,000 

Crown  Lands — 

Sundry  Loans — 

Miscellaneous 40,000 

Bullion  advances  repaid  .,  80,000 
ForTreasuryBillsfor Supply  84,828,000 
5%  Exchequer  Bonds,  1922. .  22,000 
6%  Exchequer  Bonds,  1920. .  — 
Nation-tl  War  Bonds  .  ,*23,2g2.ooo 
War  Expenditure  Certificates  — 
War  Savings  Certificates..  i,5oo,oco 
4%  War  Loan,  1929-1942  1  _ 

5%  War  Loan,  1929-1947  f  *  * 
Other  Debts  created   under 
VVar  Loan  Act,  1915,  and 
Finance  Act,  1916. .         .,    4,304,229 
Telegraph  Money  Act,  1013        — 
Under  Post  Office  Rly.  Act, 

1913 — 

Under  Military  Works  Act, 

J897.1903       _ 

Under  Public  Buildings    ..        

Under  Housing  Act..         ..        

Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds  „ 

China  Indemnity      ..         ..        — 
East    Africa    Loan    repay- 
ments         — 

Suex  Canal  Drawn  Shares. .        — 
Ways  and  Means  Advances  iS,ooo,ooo 
Decrease      in      Exchequer 
balances       , ,        , ,        . ,    1 ,321, 134 

£155.162,544 


Expenditure. 


National  Debt  Service 
Interv  St,  &g.,  on  War  Debt 
Development  &  Road  Impvt 
Payments  to  Local  Taxation 
Other  Consolidated  Fund 
Charges 


711,652 

40,000 


Supply  Services 
Bullion  Advances 


10,167 

52i  544.030 

100,000 

For  Advance  for  Interest 
on  Exchequer  Bonds  un- 
der   Capital  Expenditure 

(Money)  Act,  1904  ..         ..  — 
For  Treasury  Bills  ..         ..  g7,aia,ooo 
War  Loan  and  Exchequer 

Bonds           701,796 

Other  Debt  under  War  Loan 

Acts,  1914-16          ..         ..  2,832,899 
For  l:;xchequer  Bonds  under 
Section  61  of  Finance  Act, 

1916,  and  Seciion  54,  1917  — 
Under    Telegraph    (Money) 

Act,  19(3 — 

Under    Post    Office     (Lon- 
don) Railway  Act,  1913  ..  — 
Under  Militarv  Works  Acts  — 
Under  Housing  Act,  1914..  — 
Public    Buildings   Expendi- 
ture Act,  1903        ..         ..  — 
Old  Sinking   Fund,  1907-8..  — 
Sinking  Fund,  1914..         ..  — 
China  Indeuinity      ..         ..  —  ■ 
East  African  Loan .,           ..  — 
Cunard  Agreement  Act     . .  — 
Depreciation  Fund  ..         .,  — 
Suez  Canal  Drawn  Shares. .  — 
TtmporaryAdvances  Repaid  1,000,000 
Increase       in       Exchequer 
balances        — 


£i55.>6«.544 


LONDON  BANKERS'  CLEARING. 


Date. 

Increase. 

Decrease. 

January  2 

::  .1 
»  23 
..  30 

February  6 

J918. 
400,652,000 
455.056,000 
400,636,000 
403.7112,000 
413098,000 
44  ,563,000 

1917. 
389,111,000 
376,702,000 
350,063  000 
360,172000 
389,117,000 
430,225,000 

£ 
11,541,000 
78  354.000 

50,571,000 

43,660,000 
23,917.000 
10338,000 

£ 

Totol 

2.5>3.78j'.ooo 

».295.350.ooo 

218,383,000 

— 

CURRENCY  NOTES 

Return  of  Correnoy  Notes  for  the  week  ended  February  6,  1918. 


Issued. 

Cancelled. 

Outstanding. 

£1  notes         

los.  notes        

Nolecerti6oate« 
Previous  total 

£ 
4,616,119 
I. 343.471 
150.000 

817.9S7.251 

t 
3.I93.>57 
t.nj.957 
210.000 

606,001,955 

610,517,070 

£ 

36.886,298 

20,970.000 

2li,9S5.»96 

824.096,841 

213.579.77r 

Ratio  o(  gold  held  against  notes,  this  week.  15.06  p.c. ;  last  week  14. 79  p.c. 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  4s.). 


Jan.  II,  i9tS. 

Jan.  4,  1918. 

Jan.  12, 1917. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

95,407,600 

73.325.800 
10,500.000 

96,014,400 
67.737.400 
10,500.000 

58,565,800 

41,3  B,200 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

179,333.400 

156,354,800 

3,918,4^0 

174,251,800 

159,438,200 

3,«54  000 

99  »74,0O0 

54,902,400 

356.400 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

339506,600 
10064.800 

3)7.544iOO0 
0.062.000 

,55,132,800 
3,351.800 

Total  reserves  . . 
Bills  discounted— Members'.. 
Bills  bought  in  open  market 

349,571,400 
115,147,600 
52.538.300 

346,606,000 
125,162,600 

54,267,600 

159,486,600 
4,871,000 
23  f0^.80"> 

Total  bills  on  hand     .. 
U.S.  Gov.  long-term  sec, 
U.S.  Gov.  short  term  sec.      . 
Municipal  warrants      .. 
Loans  on  gold  coin  and  bullion 

107 ,685, coo 
10,026,400 

27,445,400 
1,023,400 

179430,200 

10,233,400 

18,41  i. 600 

J,O33.40« 

28  00<>,JOO 
8,221,200 
2,971.400 
1,971,800 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 

206,181,000 

5,448,400 

fo  910,800 

209,108,6  K3 
9,048,800 
60,401,400 

4I.2<l,2O0 

2,326.400 

24,169.200 

Total  dedctns.  fm  gross  dep. 
5%Red.FundagFed.Re3.bknts 
All  other  resources 

66,359,2^0 
107,400 
ilo.Hno 

69,450,200 
107.400 
107.4CK3 

26.495.600 

80,000 

2,4"2,200 

Total  resources 

62,i.9,f>co 

62s, 3'0  6.^'^ 

228.74''.    00 

Capital  paid  in 

Surplus      

Government  deposits  .. 
Due  to  membrs  -  Res.  account 
Due  to  non-mbrs— clearing  ac. 
Members'  bank  deposits— nett 
Collection  items 

14,3U.ooo 

226,f00 

12,104,600 
300,004,200 

40,671,800 
4,081,000 

14,165,000 

126,800 

26.2c  1,200 

289,846,000 

38,529,800 
4.lin.8oo 

11,141,200 

5.55I.80O 
136,117,200 

22,247,600 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R,  bk  nts  in  circn-nettllab. 
All  other  liab,  in  for  Gov  crdts 

356,861,6.0 

248,856,000 

1,600,000 

472,400 

358.695,800 

250,241,00c 

1,6  0,000 

451  000 

163,9   6,600 
53.633,600 

54,200 

Total  liabilities 

622,321,800 

625,379  6» 

228,745.600 

Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Ratio  of  gold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio    of    lota!    res.    to    nett 
deposit  and   F.R.    note  lia- 
bilities comb  ned 

6l.7% 
64.4% 

62.9% 

64.8% 

602% 
653% 

64.2% 

62.5% 

814% 
103.0% 

81.2% 

83.0% 

KEW   YORK  ASSOCIATED    BANKS   (dollar  at  4s.). 


Feb.  2,1918. 

J  an.  26, 1 918. 

Jan. 19, 1918. 

Feb.  3,  IS17. 

£ 

i 

£ 

£ 

Loans       

834,280,000 

8i5,io4,oco 

814,310,000 

702,2.8,000 

Reserve  held  in  own  Vaults . . 

^,620,000 

3,704.000 

4,0^2,000 

l(}6,c68,ooo 

Reserve  held  in  Fed.  Res.  Bk. 

108,664.00c 

107.6/6,'  00 

106,906  000 

40.332,000 

Cash  in  own  Vaults     .. 

2O,5S6,000 

21,690,000 

22,706.000 

— . 

Reserve  held  in  Other  Depos. 

1,714.000 

1.734,000 

1.79:1,000 

11,436,000 

Nett  Demand  Deposits 

730,876,000 

728,3^6,000 

746,290,000 

; 10,668,000 

Nett  Time  Deposits     .. 

40,616,000 

40,150,000 

39,49'>,ooo 

33,420,000 

Circulation          

6,820.000 

6,6o6,oo3 

6,810,000 

5.7J4.00O 

Excess  Lawful  Reserve 

i6,5iS.ooo 

15,986.000 

13.254.0  0 

33,326,000 

Lawful   Reserve  consists  of    i8%  of    tne  Demand  Deposits  and  %%  ot    the 
Time  Deposits 

NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES  (dollar  at  48.) 


Loans  .. 
Specie  .. 

Deposits 
Legal  Tenders 


Feb.  2,  1918. 


166.928,000 

3,55*.ooo 
166,426,000 

I5.oj8av>o 


Jan.  36, 1918. 


Jan.  19,  191B. 


164,723,000  I 
3,516,000 
167.606,000 

I5.330.o»^ 


£ 

164,250,000 
3,566.000 

169,492000 
14,976,000 


Feb.  3,  1917. 


148.733,000 

12,050,003 

1^9^97^,000 

I   '^fil.OOO 


BANK 

OF  FRANCE   (25  Iranci  to  the  £|. 

Jan.  31,  IS18. 

Jan.  24,  1918. 

Jan.  -17,  1918. 

Feb.  1, 1917. 

t 

£ 

c 

£ 

Gold  In  band 

133,003,920 

132,941,880 

132,880,76a 

•31.440.240 

Silver  in  hand 

9  9i9,320 

9.916,760 

9,834,880 

11.1^1,320 

Bills  discounted 

40,627,320 

35.753,560 

35.53'.920 

j8.367.720 

Advances 

48,054,520 

40  304.680 

4li,3. 2,080 

50  2  5,240 

Note  circulatioD 

94<. 373.520 

926,505.360 

922,500,160 

700,571,040 

Public  deposits 

943,000 

2,400,720 

1,922,6  « 

2,104,240 

Private  deposits 

118,075,000 

113,407,120 

114,283,080 

93,601,920 

PoreiKn  Bills.. 

57i,oSo 

556,360 

209,963 

221,690 

'Excluding  sales  through  banks  which  have  not  yet  been  brought  to  aecount. 


Proportion  between  bullion  and  circulation  33.84  per  cent.. against  24.31  per 
cent,  lastweek.  Advances  to  the  State  £512,000,000,  increase  £6000,000.  The 
adjourned  payments  of  drafts  in  Paris  00  account  of  the  moratonutn  £20,011,240 

decrease  £23.840,  and  at  the  branches  £25,119,320,  decrease  £27,060. 


February  9,  1918. 


Zhc  investors'  TReview, 


151 


IMPERIAL  BANK  OP  GERMANY  (20  marks  to  the  £). 


Total  Coin  &  Bullion 

Treasury  Notes 

Bills  discounted 

Advances 

Note  oirculatloa      .. 

Deposits 


Jan.  31,  1918.  Jan.23,  igi8.  Jan.   15,  1918.  Jan.  31, 1917 


£ 
126,051,100 
62,665,100 
655,276,250 
436,050 
556,946,700 
333.811,350 


126,028,850 
59.785.500 
620,901,850 
286,350 
545,941,600 
312,530,550 


£ 

125,989,350 

62,968,700 

640,679,200 

338,050 

552.197.3™ 
329,054,100 


127,072,000 
13.947,100 
409,001,950 
497.850 
392,924,450 
172,621,450 


Clearing  House    return    during    January  5^478,428,170,    against  £487,563,765 
in  December. 

BANK    OF   SPAIN  (25  pesetas  to  the  £). 


Jan.  26,  igi8l  Jan.  19,  igi6  Jan.  12, 1918  Jan.  27, 1917. 


Gold       

Silver 

FocelKQ  Bill 

Discountt<  and  Sbort  Bills 
Treasury  Account,  &c. 
Notes  In  Circulation  .. 
Current    Aooounts,    Deposits 
Dividends,  Interests,  &o. 
Government  Securities 


£ 

79.018,335 

28,517,939 

3,534,523 

28,337,011 

26,792,163 

112,435,686 

38,728,904 

2,021,545 

1,436,668 


£ 

78,704,795 

28,356,739 

3.564,879 

28,556,309 

27.073.345 

112,672,744 

37,879,162 

2,128,861 

1,652,566 


£ 

78,690,479 

28,296,124 

3,613,878 

28,971,099 

26,825,713 

112,746,814 

38,178,587 

2,507,058 

1.799.075 


£ 

51.390,050 

29«oo  805 

3.434,897 
26,493.174 

26,722,917 

94,599.750 

30,624,831 

1,863,856 

',3'8,3i3 


BANK  OF  NORWAY. 


Gold 

Balance  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
Discounts  &  Loans. 
Notes  in  Circulation 
Deposits  at  notice.. 


Jan.  15,  1918.    Jan.  7,  1918.    Dec.  3t,  1917 


£ 
6,413,000 

4.540,000 
749,000 
21,154,000 
17,093.000 
11,920,000 


£ 
6,413,000 

4,768,000 

715,000 

21,503,000 

17,394,000 

11,938,00c 


6,414,000 

4,844,000 
717,000 
22,388,000 
17,985,000 
12.179.000 


Jan.  15,  1917, 


6,904,000 

4,453icoo 

767,000 

8,320,000 

12,965,000 


BANK    OF    SWEDEN. 


old 

Ilalanoe   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  . . 
DIsQOUDtsand  Loans 
Notes  in  oiroulfttion 
Deposits  at  notice  .. 


Jan.  19,  1918.    Jan.  12,  1918.    Jan.  5, 1918.    Jan.  20,  1917, 


13,130,000 

7,407,000 

3,436,000 
12,686,000 
28,595,000 

8,005,000 


13. 711. 000 
7,239,000 

2,880,000 
13,516,000 
2^,902,000 

8,661,000 


13,718,000 
7,269,000 
2,681,000 

T4,753,ooo 
30,162,000 
8,742,000 


£ 

10,364,000 
8,401,000 


NETHERLANDS  BANK  (12  Florins  to  the  £). 


Sold  and  Silver 
Bills  and  Advances 
Vote  circulattoo 
Deposits.. 


Jan. 26, igi8 


59,514,666 
15.502,333 
72,809,916 
6,249,9x6 


Jan.  19, 1918. 


£ 

59.593.166 

15,403.500 

71,921,416 

4.746,583 


Jan.  12, 1918 


£ 

58,499.416 

i5>2/0.5oo 

73.966,33* 

3.533.333 


Jan, 27, 1917. 


49,69''. 916 

14,144,166 

6t, 245,000 

6,831,916 


BANK   OF   ITALY   (25  lire  to  tbe  jE). 


Dec. 20, 1917 


iTotal  cash 
Inland  Bills 

Foreign  Bills    .. 
Advances 

Government  securities 
Circulation 
Deposits  at  notice 
Current  accounts 


IE 


Dec. 10, 1917  Nov.30,i9r7|Dec.  20, 1916 


£ 

42,884.760 
28,521,920 
907,^00 
17,829,040 
8,810,960 
257.735.560 
35.333.480 
22,121,680 


£ 
43.776,080 

32,174,000 
9 f 9, 120 
20,894,080 
8,689,960 
256,695,760 
33.454.720 
21,923,760 


£ 
46,332,200 
33.507,760 

884,400 
23,505.720 
8,788,960 

253,'i20.o8o 
3^,894,120 
16,024.760 


£ 

43.213,440 

19,168,480 

840,080 

9,407,000 

8  900  36D 

152,388,920 

I9>593.520 

14,161,680 


SWISS  NATIONAL  BANK  (25  francs  to  the  £). 


Gold  and  silTer 

Bill, 

Note  oiroulatlon      .. 
Current  and  deposit 
accounts 


Jan.  23,  1918. 


{ 
'6,651,336 
9,782,264 
24,355,716 

4.854,348 


Jan.  15,  igrS. 


£ 

16,557.536 
10.332, 6co 
25,117,120 

4.44'^. 772 


Jan.  7,  igi8. 


£ 
16.433,020 
13.0.^7,840 
26,385,904 

5,779,560 


Jan.  23,  1917. 


£ 
15,914,140 
5,796,984 
19,293,596 

4,3^',776 


LONDON  COURSE  OF  EXCHANGE. 

plaoe. 

Usance. 

Feb.  5,  igiS. 

Feb.  7,  i«i8. 

Sellers. 

Buyers 

Sellers. 

Buyers. 

Amsterdam  . .    , . 

Paris      ..     .'.     [\ 

Switzerland..     ,. 

Petrograd    V.     .'. 
Genoa,  Ac.  ..     .. 
Spain     

Lisbon  and  Oporto 
Copenhagen..     .. 
Ciiristiania  . . 
Stockholm  ..    ., 

Cable  transfers 

Three  months' bills  ..     .. 

Cable  transfers 

Three  months'  bills. ,     . . 

Cable  transfers 

Tbree  months' bills..     .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Three  months' bills  . .     .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

10.77 
10.93 
27.14 
27.50 
21.45 
21,80 
nom. 
40.75 
19.78 

29i 

•5-45 
14.80 
14.20 

1082 
10.98 
3719 
27.60 
21.55 
21.90 
nom. 
40.S5 
19.88 
57l 
301 
15-55 
14.90 
■  4-30 

10. 7i 
10.85 
27.16 
27.55 
21.37 
21.72 
nom. 
4C.95 
I9.l;0 

2=9^ 
15-40 
14-75 
14.20 

10.76 
10.95 
27.21 
27.60 
21.47 

21  82 
nom. 
41  05 
19.70 
58 

i'°*o 

14-85 
1430 

OPEN  MARKET  DISCOUNT.  Last  week.  This  week 

Thirty  and  sixty  day  remitted  ..  ..  ''%?i°'-    ^" ""'' 

.Three  months  ,,  .,  '  "      j°  ij 

fFour  months  „  .  "        "  "'      ,    It 

[Six  months  ,  J_2 

f  Three  months  fine  inland  bills  .'.  '.'        "  "    .,1-V 

{Four  months  ..  ..        "  "    11— s 

••  "        '■'.     .      ■.'.    44-5 


I  Six  months 


.  3S-4 

■     4—k 

.  4-f8 

4i-5 

44—5 

44-5 


BANK    AND    DEPOSIT    RATES.    Last  week  This  week 

Per  cent.  Per  cent. 

Bank  of  England  minimum  discount  rate        S  ••        5 

,,  ,,        short  loan  rates  —  ,,       — 

Bankers' rate  on  deposits .,        ,,        3I  ,,       3A 

Bill  brokers' deposit  rate  (call)       .,        ,.        ,,        ,,        .,        3A  .,        3X 

,,  7  and  14  dayr' notice  .,        .,        ,,        ,,        3I  ., 

Current  rates  for  7  day  loans         Sh~%  •• 

,,  forcall  loans  ..        .,         .,        ,,        ,,      3 — ^ 

FOREIGN  RATES  OF  EXCHANGE  ON  LONDON. 


34-1 


Paris,  cheques 
Amsterdam,  cheques 
Italy,  sight 
Madrid,  sight., 
Lisbon,  sight  .. 
Switzerland,  sight   .. 
Christiania,  si^ht      . . 
Stockholm,  sight 
Copenhagen,  sight    . . 
Petrograd,  sight 
Alexandria,  srght 
Bombay,  T.T. 
Calcutta,  T.T. 
Hong  Kong,  T.T.     .. 
Shanghai,  T.T. 
Singapore,  T.T. 
Yokohama,  T.T. 
New  York,  cable 
Buenos  Aires,  T.T... 
Valparaiso,  90  days.. 
'>fQntevideo,  T.T.     .. 
Rio  de  Janeiro,  90  days 


Method  of 
Quoting. 


Francs  to  £1 
Florins  to  £i 
Lire  to  £"1  . . 
Pesetas  to  £1 
Hence  to  milreis  . 
Francs  to  £1 
Kroner  to  ti 
Kroner  to  ?i 
Kroner  to  £1 
Roubles  to  ^^'lo     . 
Piastres  to  ^^i 
Sterling  to  rupee. 
Sterling  to  rupee. 
Sterling  to  dtiilar. 
Sterlmg  to  tael 
Sterling  to  dollar. 
Sterling  to  yen     . 
Uollars  to  £1 
Pence  to  dollar    . 
Pence  to  peso 
Pence  to  dollar     . 
Pence  to  milreis  . 


t^  "so 

Last 

Week. 

0.   H 

U) 

25 .224 

27.154 

12. 107 

10.79 

25.224 

40.874 

25.224 

19.75 

53id- 

29ad. 

25.224 

21.42J 

18.159 

14.64 

18.159 

14-22 

18.159 

i5-<34 

94-57 

365 

974 

974 

1/4 

■MB 

1/4 

tim 

— 

2/iii 

_ 

4/34 



2/4A 

24.58d. 

2/li 

4-86S 

4.763 

47-58d. 



I3*d 

5id. 

58|d. 

i6d. 

■3*Sd. 

This 
Week. 


The   Weed's    Stock    Markets. 

When  we  come  to  think  of  it,  the  way  business  on 
the  Stock  Exchange  manages  to  keep  at  a  moderate 
average  of  activity  is  a  constant  source  of  wonder.  By 
all  the  rules  of  the  game  the  House  ought  to  have  put 
up  its  shutters  and  waited  patiently  until  it  "nosed" 
peace  three  months  ahead.  There  is  a  little  mild 
speculation  in  spite  of  all  the  Treasury  regulations,  but 
the  public  are  emphatically  warned  off  that  preserve, 
and  must  pay  in  full  for  their  purchases.  That  is  to  say, 
that  where  a  buyer  in  the  pre-war  days  could  deal  'n, 
say,  1,000  shares,  he  has  now  to  be  content  with  50  or 
100,  and  naturally  brokers  would  like  to  see  the  old 
conditions  restored.  Then,  again,  this  is  the  income- 
tax  season,  which  mops  up  a  tremendous  proportion  of 
the  loose  cash  which  the  average  person  keeps  at  his 
disposal.  Finally,  it  is  extremely  difficult  to  find 
reasons  for  enthusiasm  anywhere.  It  is  true  the  war 
goes  well  in  every  direction,  but  the  end  looks  a  long 
way  off,  and  with  the  5  per  cent.  War  Loan  at  ij  per 
cent,  discount  investors  develop  a  shyness  which  is  as 
natural  as  it  is  inconvenient  to  the  scores  of  Depart- 
ments that  have  a  Brobdingnagian  appetite  for  consum- 
ing the  nation's  wealth.  Nevertheless,  there  seems  to  be 
plenty  of  hardy  adventurers  who  will  buy  shipping  and 
general  industrial  shares  just  as  though  the  present  in- 
flation would  last  long  enough  to  see  more  than  50  per 
cent  of  their  capital  back  !  It  is  a  great  idea,  and  we 
should  like  to  see  their  optimism  carried  into  other 
spheres  of  activity.  Home  Railways  have  been  helped 
a  little  by  a  few  increased  dividends ;  but  as  a  rule  the 
results  disclosed  are  nof  particularly  flattering  to  the 
managements.  Grand  Trunks  have  been  conspicuous 
on  a  rather  shadowy  idea  that  the  Canadian  Govern- 
ment will  come  to  the  rescue  of  the  company  in  a  more 
handsome  manner  than  seems  at  all  probable,  but  we 
can  never  be  sure  what  wirepulling  may  accomplish  in 
these  ca.ses.  But  we  should  prefer  War  Bonds  to  most 
other  things  that  are  dangled  before  investors. 

In  spite  of  the  fact  that  money  is  usually  scarce  at  this  time 
of  th«  y^ar,  owing  to  the  active  collectim  of  income-tax,  the 
Stock  markets  have  been  fairly  buoyant,  and  a  larger  turnover 
has  been  experienced  than  might  h.ive  been  expected  with  the 
restrictions  which  are  at  present  in  force.  Consols  and  War 
Loans  have  been  wonderfully  steady,  and  there  has  been  quite 
a  moderate  demand  for  these  securities  from  investors  who  have 
not  applied  directly  for  new  bonds  either  through  the  banks  or 
the  Post  Office.  Other  gilt-edged  securities  have  not  shown 
much  activity,  but  that  was  scarcely  to  be  expected,  and  the 
Colonial  list  has  been  extremely  quiet,  in  fact,  almost  entirely 
neglected.  Foreign  stocks  also  have  been  rather  feeble,  and, 
except  for  a  little  displ.iy  of  strength  on  the  part  of  French  War 
Loans  and  Peruvian  Corporation,  the  inajority  of  stocks  have 
been  inclined  to  give  way.  Japanese  were  just  barely  steady, 
while  Chinese,  Russians,  Spanish,  Guatemalas,  and  most  other 
South  Americans  have  lost  ground.  Baku  Corporation  stock 
fell  as  much  as  5  points.     Business  in  ihis  section,  however,  is 


152 


"^be  investors'  TRevlew. 


February  9,  1918. 


I  Last  I  This  11 
IWeeklWeekJl 


I  Last    This 
I  We«k  We«k 


Consols 

War  Loan    3}% 

4i% 

5%   1929-47. 

^   J,-  "^        ^^'  ^9^9-42. 
India  3% 

M    ^^^ 

Australian  5^%,  1920-22  . 

Canada  4%,  1940-60 

4h%,  1920-5 

N.S.W.  4%,  1933 

-Argcntino  4%,  1900 

Belgian  3% 

Brazil,  1913 

1.  5%r   I9I4       

Chinese  1896  

,.       1912 

Esypt  Unified  4% 

'Caledonian  defd 

Gt.  Central  pra 

dfd 

Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd.  , 
London  Chatham  ord.... 


Canadian  PacifiQ   

E.  Indian  Guar.  4ft  %  debs. 

Grand  Trunk  ord.    

Do.  ist  pf 

Do.  3rd  pf 

Antofagasta  dfd 

Brazil  Common 

fi.  A.  &  Pacific  

B.  A.  Gt.  Southern 

B.  A.  Western    

-Anglo-South  American   . . 

Bank  of  Australasia 

Bank  of  N.S.  Wales 

Barclay  &Co."A" 

Do.       "B" 

Capital  &  Counties   

Chartered  of  India    

Hongkong  &  Shanghai    . . 

Lloyds  

London  &  Brazilian 


Armstrong,  Whitworth. 
Birmingham   Small  Arms 

Cammell-Laird 

'Cart^o  Fleet 

Dorman,  Long  


Associated  Cement 

Borax  dfd 

Bovril    

Brazil  Traction  

British  Araer.  Tobacco  pf 

British  Aluminium  

British  Oil  &  Cake    , 

Brunner,  Mond , 

Castner-Kelluer , 

Coats , 

Courtaulds , 

Cunard , 

Dennis  Bros , 

Eastern  Telegraph   

I£astmans 

English  Sewing  Cotton  ., 

Anglo- Egyptian  '*  B"  . . . . 

iBaku  (los.) , 

£urmah , 

Lobitos , 

Maikop  Pipeline   < 

Mexican  Eagle  pf 


MB 
86i 

99^ 

93f}i 

101^ 

55a 
644 
98 

S.J 

93 

Sa 

67i 

64 

70 

8oi 

94 

83 

85 

85 
■4 

6J 
35t 

'**. 
8C| 

674 
60 


160 
84 

9i 

53 
'32J 

5 
40 

7ii 

74 
120 

36 

24J 
73I 
88 
25 

24J 

41/9 
53/6 
7 
27; 
40/ 

35 
41/6 
21/ 
44J 
jS/6 
31/6 
33/9 

k 

35/3 

15'J 

8/9 

55/  X 


54i 
85ix 
looj 
93A 
ioi| 
554 
644 
98 
8lit 

824 

67 

6; 


Sox 
94, 

^5* 

.?! 

6J 
3431 
38 
87 
67i 
60 

H 

160J 
84 
10 
58J 

^4i 

132 

5 

39J 

73 

704 

74 
121 

36 

7ix 

J2^K 

544 

73 

87 

254 

244 

41/9 

.546 

7 

26/3 

39/6 

35 
41/3 
21/ 

1?i 

l8/fi 
33/6 
34/ 

li 

l\ 

44 

35/3 
1504 

9/ 
55/6 


N.S.W.  44%5yr.l'ds 

„      44%.  '922-7 

5%.  1921-3 

..        5}%.  1920-2    

New  Zealand  4%,  1929    . . 

Queensland  4% 

44%.  '920-5  . . 

Union   of  S.  Africa  4j%, 

'9:0-5     

Victoria  44%.  1020-5 

Westn.  Aus.  4%    

Frencli  War  Loan,  5%  .. 

Japan  44%  (ist),  1905   

5%  1907 

Mexican  5%,  1899   

Russia  4  % 

„      44%. '909 

..      5%.  '905 

London  and  N.-W 

Londun  and  S.-W,  dfd.  . . 
Do     red.  pf.  1^4 

Metroprjlltan  

Do.         5%      pf-- 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth. -Eastern 

Sth. -Eastern  dfd 

Chesapeake 

Erie 

Southern 


Cent.  Argentine  ord... 

Leopoldina 

Mexican  ord 

San   Paulo  (Brazilian).... 

United  of  Havana 

London  City  &  Midland. . 
London  County  &  West'. 

London  Joint  Stock 

Nat.  Prov.  ot Eog.(£ioJ  pd) 
Do.  (f  12  pd) 

Parr's    

Standard  of  S.  A 

Union  Discount 

Union  &  Smiths 


99 
90 
97 

864 
804 
94 

92 

794 

798 

99» 

924 

5a 

374 

494 

92* 

»44 

94 

224 

77 

58| 

14 

97 

294 

56 

214 

253 


904 
97 


94 

92 
94 

794 
793 
994 

95 

58 

384 
40 

50 

244 

^\ 
222 

9iii 

30 

56 


Kynochs   

Niond  Nickel  ord 

South  Durham  Steel 

Thornycroft    

Vickers 


38/6 


Fine  Cotton  Spinners  . . . . 

Forestal  Land 

Furness,  Withy 

{-larrods  Stores 

Hudson's  Bay    

Imperial  Tobacco  *  C  '  pf 

Lever  Bros.  '*  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car , 

Pears,  A.  &  F , 

P.  &0.  dfd 

Royal  Mail 

Underground  Inc.  Bds.  . 


30/ 

32/6 

1/9 

1/9 

7i 

7* 

2^ 

=*, 

2/ 

2/ 

63/ 

62/6 

North  Caucasian  . 
Roumanian  Cons.. 

Shell 

Spies  (id/-) 

Ural  Caspian 


A!lagar2/- 

Angto-Java  Rub.  aj-     . 

Angto-Malay2/ 

Ayer  Kuning  ^^i 

Batang  Malaka  2/- 

Bekoh  2/- 

Brit.  N.  Borneo  Trust  £1 

Bukit  Cloh2/- 

fiukit  Kajang  £i 

Bukit  Mertajam  2/-   

Bukit  Sembawang  2/-  .... 

Carey  United  £1  

Ceylon  Para  2/- 

Chersonese 

•Chevi  t2/-  

Dalkeith  2/- 

Eastern  Invest.  Trust  £1,. 

'Grand  Central  £1 

Gula  Kalumpong  £1 

Highlands  £t 

Java  Investment  £1 

Java  Para  / 1  

Johore  Rubber  Lands  £1.. 

Kamunin    2/- 

Kinta  Kellas2/- 

Kuala  Kubu  2/-  

Labu2/- 

Langen  Java  £t 

Linggi2/- 

London  Asiatic  2/- 

Malacca  £i 

Malayalaui  £1 

Merlimau  2/-   

Padaiig  Jawa  2/- 

iPataling  2/- 

Abbontiakoon  (10/-) 

Bechuanaland  Exp 

Brakpan  

Broken  Hill  Prop.  (8/-)   .. 

Cam  &  Motor 

Central  Mining  (1^12)  .... 

Chartered    

City  Deep      

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (to/-) , 

De  Beers  dtd.  (£2  10^.)  . 

East  Rand  

<;eduld 

<Gov,  Areas  Mo(5     


3/3  I     3/3 
6/104'      7/ 
'3/3  i'3/io* 
50/        49/ 

4/74       4/74 
4/5        4/5 
16/3       :6;3 

5/14  ;    5/'4 
71/3      7'/3 


4/9 
3/44 
43/ 
9^44 
3/6 
6/3 
2/loJ 
!5/9 

16/6 

36/ 

59/ 

29/3 

32/ 

33/ 

4/2 

4/3 
2/104 

9/9 

45/ 

26,6 

8/3 
5^ 

39/3 
5/6 
3/9 

41/6 

4/3 
7/3 

51 
56/6 
14/ 

6i 
16/ 

^i 
■9/6 
2 
13 

5/6 


4/74 

3/4J 

43/ 

9/44 

3/3 

6/3 

3/ 

25/9 

27/ 

35/6 

59/ 

29/3 

30/6 

33/ 

4/2 

4/0 

2/74 

10/ 

45/ 

27/ 
8;4| 

37/9 
5/44 
3A9 
40/6 

4/3 
7/6 
5A 
57/9 
'3/3 
6A 
16/ 
3A 
34/ 
'9/6 
2 
13 

2.A 

3!I3 


Perak2/-   

Port  Dickson  2/-   

Kub.  Estates  Johore  £1. 
Rub.  Estates  Krian  2/-. . . 

Rubber  Trust  £t 

Sampang  (Java)  2/- 

Sapumalkande  ;^i     

Seaport  £1 

Selaiigor 

Sengat  2/- 

Seremban  £1 

She!ford£i 

Sialang  £1    

Singapore  Para  2/-    

Singapore  United  2/-    ... 

Soember  Ajoe  2/- 

Stagbrook  £1 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  ^l   

Sungei  K^frar  2/-   

Sungei  Kruit  £1 

Taiping  2/-  

Tali  Ayer  £1  

Tandjoiig  £1  

I'andjong  Malim  £t 

Tehran  £1  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdang  2/-  . .. .. 

United  Sumatra  2/- 

Val  d'Or  2/- 

Vallatnbrosa  2/- 

Way  Halim  1/8  pd 


Gt.  Boulder  (2/-I    

Kyshtim    

Mashonaland  Agency 
Meyer  &  Ctrarltoa    .. 

Modder  "  B" 

Do.    Deep 

Mysore 

R.nd  .Mines  (s/-)    .... 

Rio  Tinto(£5)   

Ru*so-Asi  I  tic 

Spring  Mines 

faiiganyika 

fanalyk    

Van  Ryn  Deep  


so  small  that  movements  are  not  a  fair  indication  of  what    is 
actually  transpiring. 

Home  Railways  have  been  rather  erratic.  The  dividends 
so  lar  are  just  about  equal  to  expectations,  but  the  Scotch  distri 
butions  at  a  slightly  higher  rate  than  last  year,  followed  by  the 
advance  of  J  per  cent,  in  the  case  of  Hull  and  Barnsley,  gavo 
the  market  a  certain  amount  of  encouragement,  which,  how- 
ever, is  not  really  jiistiricd  by  the  actual  results  so  far  as  hav« 
been  disclosed.  Americans  were  idle  and  uninteresting,  except 
with  regard  to  International  Mercantile  Marine,  where  the  pre- 
ference advanced  several  points  and  the  ordinary,  alter  show 
ing  some  weakness,  rallied  smartly.  Canadian  Pacifies  have 
dropped  into  almo.st  complete  neglect,  but  the  Grand  Trunk 
came  into  prominence  on  the  idea  that  the  Government  might 
take  over  the  line  on  much  more  favourable  terms  than  the 
recent  Commission  suggested.  All  tHe  securities  of  the  com- 
pany advanced  sharply,  at  one  time  the  gains  amounting  in 
some  cases  to  as  much  as  5  or  6  points,  but  the  probabiUties  ar; 
rather  against  such  bullish  views  as  the  market  has  'ndulgcd  in 
Argentine  Rails  have  been  dufl,  and  the  tendency  generally  h.-i 
been  weak,  because  it  is  still  very  uncertain  what  the  labour 
position  actually  is.  There  have  been  further  riots  and  wilfn 
damage  to  the  properties  of  the  Knglish  managed  railvays,  an  i 
the  country  appears  to  be  more  or  less  in  a  state  approaching 
Bol.shevish,  which  is  not  calculated  to  give  investors  in  th« 
staple  industries  of  the  country  much  confidence  as  to  thi 
immediate  future.  .San  Paulos  were  weak,  and  Brazilian  stock^ 
generally,  received  very  little  support. 

Bank  shares  liave  been  in  good  demand  from  the  class  of  ir 
vestor  who  appears  to  favour  these  eminently  respectable  secur! 
ties,  but  the  only  outstanding  point  has  been  the  sharp  ad 
vance  in  Parr's  on  the  amalgamation  scheme  with  the  Londci 
County  and  Westminster.  Colonial  Banks  also  were  parti 
cularly  good  at  one  time,  but  the  movements  subsequently  bi 
came  irregular,  jxjssibly  on  a  certain  amount  of  profit  taking 
Breweries  were  not  nearly  so  prominent  as  they  have  been  < 
late,  and,  apart  from  gains  of  2  points  in  Guinness  stock,  th 
changes  were  mostly  adverse,  both  Watney,  Combes  and  City  r 
London  losing  ground  on  profit  taking.  Egyptian  securitit 
have  continued  in  great  request,  and  although  in  some  cases 
slight  reaction  has  occurred,  the  tendency  generally  has  bee: 
favourable.  Iron  and  Steel  shares  as  a  rule  have  been  good 
and  except  for  a  fall  of  24  in  Otis  Steel,  the  movements  ha'.- 
been  almost  invariably  in  an  upward  direction.  Among  Lam 
shares,  Hudson's  Bays  were  rather  weak,  but  Nigers  hax. 
again  secured  a  substantial  advance.  Nitrate  shares  were  fir: 
in  anticipation  of  a  big  demand  for  the  commodity,  and  amon 
Miscellaneeus  Indu.strials  the  tone  has  been  wonderfully  coi: 
fident.  The  chief  movement,  however,  has  occurred  in  th 
shipping  division,  where  P.  and  O.,  Royal  Mail,  Furne;. 
Withy,  and  a  few  others  have  been  soaring  up  to  height 
which  must  make  a  prudent  investor  e.xtremely  cautious  as  t. 
what  mav  happen  if  the  present  boom  begins  to  simmer  down 
)il  shares  have  iJeen  good  without  any  great  activity  being 


i 


Oi 


Mexican 


displayed  in  any  direction,  but  Anglo-Egyptians, 
Eagles,  Venezuelan  Concessions,  and  a  few  others  have  shown 
a  certain  amount  of  liveliness,  and  apparently  have  received  a 
considerable  amount  of  support  from  speculative  buyers. 
Rubber  shares  have  been  extremely  quiet,  compared  to  what 
conditions  were  recently,  but  the  tone  has,  if  anything,  been 
firmer,  paitly  owing  to 'the  fact  that  the  price  of  the  raw  matr 
rial  has  hardened  to  a  trifle  over  2S.  3d.  The  amount  of  bust 
ness,  however,  is  very  disappointing  to  the  dealers,  who  have 
laid  themselves  out  speciallv  for  this  particular  section  of  the 
market,  and  instead  of  buyers  tumbling  over  each  other  to 
secure  shares,  there  are  more  holders  anxious  to  try  and 
secure  the  profits  that  have  accrued  on  their  purchases  during 
the  last  few  months. 


LONDON    PRODUCE  MARKETS, 

There  was  no  new  noteworthy  feature  to  record  in  roost  direc- 
tions, actual  transactions  being  confined  to  a  moderate  limit,  while 
price  changes  were  not  of  much  importance. 

Sugar.— Quotations  remained  without  alteration  during  the  week. 
Coffee.— There  was  quite  a  steady  business  proceeding  during 
this  week,  demand  on  consumptive  account  being  of  a  sustained 
nature,  and  prices  were  maintained  without  difficulty.  With 
regard  to  all  mild  liquoring  descriptions,  offers  from  second  hands 
continue  to  be  made  with  marked  reserve.  In  auction,  bold  faded 
Neilgherry  sold  iigs.  6d.  ;  longberry,  iiis.  ;  Santos,  quay  terms, 
good  to  superior,  70s.  6d.  to  72s.  6d. ;  and  peaberry.  82s.  to 
83s.  6d.  Quite  a  feaureless  state  of  aflairs  governed  the  market 
for  future  delivery. 

Cocoa— Only  a  small  business  was  effected  on  about  former 
terms.  , 

Spice.— Business  proved  quiet,  but  rates  generally  steady.  Ot 
pepper,  fair  black  Singapore,  on  spot,  sold.  is.  2d.  ;  Tellicherry 
quoted  is.  3|d. ;  and  Muntok,  is.  7Jd.  Cloves  dull.  Fair  quality 
Zanzibar,  spot.  is.  9d.  Tapioca  market  firm,  quiet.  Fair  flake., 
spot,  sellers,  7jd.  per  lb.  Fair  Penang,  seed  peatl.  70s.  ;  medium. 
67s,  6d.  ;  and  (air  small  sago,  67s.  6d. 

Rice  sparingly  offered  and  in  sustained  request.  Beans  and 
peas  remain  unchanged. 

Hemp.— Onlv  retail  sales  were  effected  in  East  India  kinds. 
Shellac— Small  transactions  occurred  in  spot  lots  at  400s.  for 
fair  free  second  orange.     Futures  dearer.     March  sold,  414s.  ; 
Mav,  410S. 

Robber.  —  Moderate  sales  passed  at  about  steady  prices 
Plantation,  spot,  crepe,  sold,  2S.  3jd  to  2s.  3d  ;  February 
2S.  3jd,  to  2S.    3d.;    March,    2S.    ajd. ;   April-June.    2s.   4id.  : 


February  9,  1918. 


^be  Jn^pcstors'  IReview. 


153 


h: 


July-December,  2S.  5§d.  to  2S.  sjd.  Ribbed  smoked  sheet,  spot, 
sold,  2S.  2|d.  to  2s.  2jd.  Fine  hard  Para,  spot,  sellers,  2S.  y^d. ; 
soft  fine.  2S.  3d.  ;  ball,  is.  6^d. 

Corn  (Mark  Lane). — The  market  displayed  a  very  steady  tone, 
ith  an  active  demand  for  all  cereals,  but  business  was  on  a 
moderate  scale.  Wheat :  English  sparingly  offered  at  75s.  6d.  for 
both  whites  and  reds  per  qr.  (504  lbs.).  Of  imported  descriptions, 
No.  I  Northern  Manitoba,  8is.  6d.  to  82s.  3d.  ;  No.  2  ditto,  80s.  to 
Sos,  gd.  ;  No.  3,  78s.  to  785.  gd.  No.  2  hard  winter,  80s.  to  80s.  gd. 
Australian,  835.  6d.  to  84s.  3d. ;  and  La  Plata,  8is.  Gd,  to  82s.,  all 
landed,  per  496  lbs.  Flour  was  held  for  full  rates,  while  reservedly 
offered.  English  town  and  country  (G.R.),  44s.  3d.  per  sack,  ex 
mill ;  and  Canadian  export,  51s.  gd.,  ex  warehouse,  per  280  lbs. 


CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK   ENDING    FEBRUARY  8,  1918. 


tDgar— per  owt. 
duty  14/,  98% 
polarisation 

Tate's  Cubes 
Crushed. .  . . 
Granulated  .. 
Lyie's  granulated 
Foreign".  granu- 
lated, first  raarkf 
f.o.b.,  spot 
GermanCubef.o.b 
French  Cube 

prompt 
Crystainsed.Wesl 

India 

Beet,   88%    f.o.b 

Tea— per  lb.,  duty 

I/-  lb. 
Indian  Pekoe 
Broken    ,, 
Orange    „ 
Broken    „ 
Pekoe    Souchong 
Ceylon  Pekoe     ,. 
Broken     ,, 
Orange    ,, 
"^itoken    „ 
'ekoe  Souohong 

>COa  —  per  cwt. 

duly  6d.  per  lb 
'rinidad — per  owt 

enada 

est  Africa.. 

lyJon  Plantation 

ayaquilAtiba.. 

tr«0— per  cwt. 
duty  42/.  per  cwt. 
East  India    ..     .. 

Jamaica 

Costa  Rica  .,     .. 
Provisions— 

Butter,  per  cwt. 
Australian  tinest 
Argentine     ..     .. 
Insh  Creameries 
Dutch  ditto..     .. 
Russian  finest    .. 
Paris  baskets 
Oauish  finest 
Brittany     rolls  — 

doz.lb 

Baeen— per  owt, 
Irish      

Cootinental..    .. 

Canadian     ..    .. 

American  . .  , . 
_         Hami — per  owt, 

fe^jilsh      

I^^^anadian     . .    . . 
I^HfcnierlcaD     >.     .. 

"       Oheese— perowt. 
Dutch 

Canadian  ..  ,. 
■  English  Cheddar 

Wilts  loaf  ..  .. 
I  New  Zealand      . . 

ftiee— per  cwt. 
'  Japan     

Rangoon  2  stars  . . 

BggB— per  120. 

English 

Irish      

Danish 

j  Spelter— 

G.O.B.  as  to  posi- 
tion     

Plour— per  sack. 

Country  Straight 
Runs  ex  Mill . , 


£    s.  d 


2  13    9 

2  13  9 
269 
269 


nom, 
nom. 


269 
nom. 

,.  d.  s.  d 

nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom, 
nora. 
nt-m. 
nom. 

s.  d.  s  d. 
87  0  -99  0 
85  o  -98  0 
68  o  -77  o 
77  o  -94  0 
iioy-112/ 


Last 
Week. 


This 
Week. 


97  0-115  0 
77  0-151 
97  O'liS  0 


252/ 
352/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


172/ 
1711-172! 
171/-172/ 
172/-180/ 

2C3/ 

:62/-i65/ 
i25/-i65y 

129/6-160/- 
nom. 
i42y 
nom. 
noiu. 

s.    d. 

nom. 
26    3 


£  fl.    d. 


2  13 
2  13 
2  6 
2    6 


nom. 
nom. 


269 

nom. 


nom. 
nom, 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 

d.  s.  d. 

87  o-  99  o 

S5    3-  98  O 

68  o-  77  0 
77  o-  94  0 

iJoy-112/ 


lOO-O  I2I-6 

77-0  15 
97-0  1 1 8-0 


44  0-45  o 

38  0-40  o 

nom. 


44/3 


252/ 

252/ 
nom. 
nom. 
nom. 
nom 
nom 

nom. 


172; 
171/-172/ 
171/-172/ 
172/-180/ 


203/ 

162/-165/ 

I25/-I65/ 

129/6-160/ 
nom. 
142/ 
nom. 
nom. 

s.  d. 

nom. 
26    3 

44  0-45  o 

40  0-42  0 

nom. 


44/3 


Wool— per  lb. 

Australian 

Scoured  Merino 
Scoured  Cr'ssbr'd 
Greasy  Mejrlno  ,. 
Greasy  Crossbred 
New  Zealand; 
(scoured)  Merino 
Greasy  Crossbred 
Cape  snow  white 

Ind4arubberp.lb 

Plantation,      Spot 
Crepe 


Coal — per  ton 

Durham,  best  .. 

Seconds        ,,  . . 
East  Hartlepool. . 

Seconds       .,  .. 
Steams,  best 

Seconds       ..  .  ■ 

Lead — per  too. 
English  Pig..     ■• 
Foreign  soit,  net 

QulckBllver— per 

bottle  firsthand 


Tin — per  ton 
English  Ingots     . 

Do.    bars 
Standard  cash    .. 
TinPlates.perbox 
Copper — per  ton. 
Eoglish,     Tough, 

per  ton      ..     .. 
Best  Selected    .. 

Sheets 

Standard      ..    .. 

Jute— per  ton. 

Native   firsts    for 

shipment 

Oils— 

Linseed,  per  ton... 

Rape,  refined  ...v 

,,        crude   

Coit'n  Seed, crude 
Ditto,  refined  .. 
Petroleum  Oil, per 

8  lbs. 
Water  White  .. 
Oil  Seeds, Linseed 
Calcutta— per  ton 
Spot 
Rape     


Iron- per  ton 

Cleveland  Cash  . . 
Tobacco  —  duty, 

unmanufactured 

7/4  to  8/0   per  lb. 
Maryland  &  Oliio. 

per  lb.  bond    .. 
Virginialeat. 
Kentucky  leaf    .. 

Latakia 

Havana 

Manila 

Cigars,  duty   10/6 

per  lb. 

Timber— Wood. 

Pitch  Pine    . .     . . 
Indian  Teak 

Turpentine— 

American  Spot  .. 

Copra— per  ton 

Malabar        . .     . . 

Ceylon 

F.M.S.  Singapore 
F.M.    Straits 


Last 
Week. 


£  s.  d. 

nom, 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


nom. 
nom. 
nom. 
nom 

32  6 
29    6 

i     9.  d 

nom. 
^29i-jC28^ 

nom. 


£298-303 
£299-304 

£296^. 

nom. 


£H7 
£iio-iioj 


£58-^63 
£71 
£b6 
£60 

£67-^95 


29  15 

£29-1 0^30 


nom. 
0  8—2    1 

0  7 — o  II 
2  0—5    o 

1  6-6    6 
nom. 

2/  upds. 


300/— 400/ 
380/— 700/ 


46  o 
46  0 
45  t5 
45  10 


This 
Week. 


£    s.  d, 

nom, 

nom. 
nom. 
nom. 

nom. 
nom. 
nom. 


0    2    3i 


nom. 
nom. 
nom. 
nom. 
32  6 
29  6 

£    s.   d. 

nom. 
£29J-£«84 


£310 

£305 
nom. 


nom, 
£ii9-jfr23 

£IIO-IIoi 


£58-jf63 

£66 
£67-£95 


1/7J 
1/84 


29  15    0 
-^29-io£30 


nom. 
08-2    I 
0  7  -o  II 
20-5    o 
16-66 

nom. 

2/  upds. 


[00/ —  400/ 
180/—  700; 

124/6 


46  0 
46  0 
45  ;5 

45  10 


Oatsfirm.  English,  46s.  3{1.' per  336  lbs.  ;  American  white  clipped 
No.  2,  61S.  to  62s.,  landed,  per  320  lbs.  Barley  :  English  milling, 
62s.  gd.  ;  and  Californian,  93s.,  landed,  per  448  lbs.  Maize  con- 
tinues out  of  offer,  and  quite  nominal. 

Cotton  (from  our  Manchester  correspondent).  —  The  trade 
passing  in  the  market  during  the  past  week  has  shown  no  improve- 
ment, and  complaint!  from  sellers  have  tended  to  increase.  The 
industry  as  a  whole  is  in  a  very  different  position  compared  with 
the  end  of  last  year,  and  order  lists  in  both  yarn  and  cloth  are  dis- 
tinctly lighter.  The  lack  of  confidence  in  current  rates  is  very 
pronounced.  All  our  customers  seem  to  be  of  the  opinion  that  the 
safest  policy  to  adopt  at  the  moment  is  to  hold  aloof.  Under  the 
circumstances  it  is  useless  for  producers  to  try  to  force  out  orders, 


^nd  a  period  of  marking  time  is  being  experienced.  Sentiment  in 
raw  cotton  circles  has  been  very  mixed,  and  fluctuations  in  prices 
have  occurred  from  day  to  day  without  there  being  much  change 
on  the  week.  There  are  fears  of  tonnage  for  our  Eastern 
markets  being  scarcer  than  ever  during  the  next  few  months,  and 
there  is  apprehension  of  what  may  happen  it'  goods  at  to-day'shigh 
prices  begin  to  accumulate  in  local  warehouses.  Letters  and 
telegrams  from  India  and  China  have  been  featureless,  and  there 
are  no  indications  of  dealers  abroad  being  more  prepared  to  arrange 
contracts  with  Lancashire  manufacturers.  Not  more  than  a 
sorting-up  business  has  been  done  for  the  minor  outlets  East  and 
West.  In  certain  kinds  of  cloth  engagements  are  running  down 
rather  rapidly,  and  before  very  long  makers  will  be  in  urgent  need 
of  work  to  go  on  with.  There  is  not  much  to  complain  about  as 
to  the  situation  in  home  trade  circles.  Stock  lots  have  commanded 
a  ready  sale.  In  American  yarns  buying  has  been  confined  to 
small  lots  to  be  sent  in  at  once,  and  users  are  not  at  all  disposed  to 
purchase  for  distant  delivery.  Wefts  are  getting  rather  more 
plentiful.  Only  a  retail  trade  has  been  done  in  shipping  counts. 
Bolton  spinnings  have  been  firm  in  quotation,  but  fresh  business 
has  been  restricted. 


American  Business  Notes. 


No  sooner  had  the  Government  in  Washington 
announced  its  intention  to  take  complete  control  of  the 
railways  than  the  howling  began.  All  sorts  of  objec- 
tions were  raised,  and  complaints  of  mismanagement 
were  as  abundant  as  if  it  had  been  the  Government  of 
Downing  Street  that  was  being  shied  at.  And,  of 
course,  the  danger  that  threatens  after  the  war  was  in- 
sisted upon.  No  doubt  the  American  people  will  take 
the  manifestations  as  philosophically  as  we  have,  on  the 
whole,  done  here.  Government  interference  is  nowhere 
relished,  and  has,  no  doubt,  frequently  produced  delays, 
wastes,  and  other  vexations,  especially  during  the 
period  of  transition,  but  all  this  is  only  to  be  expected,, 
and  the  wise  submit,  while  the  war  lasts. 

Mr.  Otto  H.  Kahn,  the  eminent  and  loyal  German- 
American  citizen  of  the  United  States,  is  ably  and 
loyally  assisting  his  fellow-citizens  to  understand  what 
they  are  fighting  for.  Some  of  his  recently  reported 
utterances  are  of  very  high  quality  indeed.  "  I  do  not 
apologise  for,  nor  am  I  ashamed  of,  my  German  birth," 
he  said  in  one  address  delivered  at  Milwaukee.  "  But 
I  am  ashamed,  bitterly  and  grievously  ashamed,  of  the 
Germany  which  stands  convicted  before  the  high  tri- 
bunal of  the  world's  publicopinion  of  having  planned  and 
willed  war,  of  the  revolting  deeds  committed  in  Belgium 
and  northern  France,  of  the  infamy  of  the  Lusitania 
murders,  of  innumerable  violations  of  The  Hague  Con- 
ventions and  the  law  of  nations,  of  abominable  and  per- 
fidious plotting  in  friendly  countries  and  shameless 
abuse  of  their  hospitality,  of  crime  heaped  upon  crime 
in  hideous  defiance  of  the  laws  of  God  and  men." 

And  he  went  on  to  disclose  something  from  actual  and 
personal  experience  of  the  plottings  of  the  Prussians, 
who,  for'a  full  generation,  had  endeavoured  again  and 
again  to  bring  about  a  situation  that  would  force  war 
upon  the  world.  "  I  know  from  my  personal  know- 
ledge," Mr.  Kahn  declared,  "  the  stage  was  set  for  war 
six  or  seven  years  ago  in  connection  with  the  Agadir 
episode.  I  know  that  the  Pan-Germans  meant  to  have 
a  footing  in  South  America,  and,  once  there,  would 
have  threatened,  and  had  prepared  plans  to 
threaten,  this  very  country  of  ours."  He  declared 
further  that  he  knew  in  1913  that  Austria  meant  to  con- 
quer Serbia,  and  so  informed  her  then  Ally,  Italy, 
believing  that  she  could  do  so  with  impunity.  "  I  know 
also  that  Austria  did  not  believe  that  its  ultimatum  to 
Serbia  in  July,  1914,  would  bring  on  a  serious  war." 

That  is  just  the  gruesome  thing  about  it.  Neither 
Austria  nor  Prussia  ever  dreamed  that  they  would 
range  the  whole  civilised  world  against  them.  They 
saw  their  chance,  as  they  thought,  to  execute  gigantic 
schemes  of  robbery  and  enrichment  by  plunder.  Their 
miscalculation  is  going  to  prove  their  ruin.  "  The  spirit 
of  Prussianism  and  the  spirit  of  Americanism  cannot 
live  in  the  same  world,"  Mr.  Kahn  declared;  "one  or 
the  other  must  conquer.  In  the  mad  pride  of  its  con- 
tempt for  democracy  Prussia  has  thrown  down  the 
gauntlet  to  us."  And  thankful  we  are  that  the  great 
American  Republic  has  picked  that  gauntlet  up,  for 
there  can  be  no  question  that  by  this  time  France  and 


WL. 


154 


tCbe  investors'  TRevtew. 


February  9,  1918. 


PUBLIC     INCOME     AND    EXPENDITURE. 

The  following  are   the  receipts   into   and   issues  out     of    the 
Exchequer  between  April  1,  1917.  and  February  2.  1918:— 


Balances    in    Exchequer   on 

April  I— Bank  of  England  . . 

Bank  of  Ireland    . . 

REVEM17B. 

Customs  

Excise  

Estate,  &c..  Duties 

Stamps 

LandTax l 

House  Duty    ) 

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Duties,  &c 

i^and  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    fronL    Sundry 

Loans,  &c 

Miscellaiieoua. 

Revenue  , 

Total,  including  Balanoe  . . 


Estimate 

for  the 

Year 

1917-1916. 

(See  note.) 


I  Total  Receipts 
into  the 
Exchequerfrom 
April  I,  19:7,  to 
Feb.  2,  1918 


Total  Receipts 

into  the 
Exchequer  from 
April  I,  1916,  to 
Feb.  3,  1917^^      ^ 


70,750,000 

34.950,00c 

20,000,000 

3,000,000 

2,600,000 


224,000,000 
200,000,000 

400,000 
33,700,000 

600,000 

7,500,000 
27.100,000 


638.600,000 


Other  Rfxeipts. 

Repayment  of  Advances  for  Bullion   

Repayment  of  Advances  for  Interest  on 
Exchequer  Bonds  under  the  Capital  Expen- 
diture ( Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For  Treasury  Bills  (lor  supply)    

For  Exchequer  Bonds  under  the  Capital 
Expenditure  (Money)  Act,  1904  

For  Exchequer  Bonds  under  the  Cunard 
Agreement  ( Money)  Act,  1904   

For  4^  per  Cent.  War  Loan,  1925-1945 

For  5  per  Cent.  Exchequer  Bonds,  1919 

For  5  per  Cent.  Exchequer  Bonds,  1920    

For  5  per  Cent.  Exchequer  Bonds,  1921  .... 

For  5  per  Cent.  Exchequer  Bonds,  1922   

For  6  per  Cent.  Exchequer  Bonds,  1920    .... 

Por  War  Expenditure  Certificates   

For  Wat  Savings  Certificates 

For  other  Debt  created  under  the  War  Loan 
Acts,  1914-1917 

For  4  per  Cent.  War  Loan,  1929-1942,  and  5  per 
Cent.  War  Loan,  1929-1947    

For  National  War  Bonds    _ 

East  Africa  Protectorate  Loan  :  Repayments 
on  account  of  Principal  and  Interest 

CunarJ  Loan:  Repayment  on  a/c.  of  Principal 

Suez  Canal  Drawn  Shares 

China  Indemnity   , 

Temporary  Advances— Ways  &  Means  (inctud 

ing  Treasury  Bills  £345,000,000  in  1916-1917) 

Total 


i 
25,209,947 
1.225,912 


26.43S.»S9 


59,316,000 
31,581,000 
26,462,000 
6,504,000 

1,310,000 

129,169,000 
173.39O1OOO 

479,000 

27,750,000 

560,000 

1.925,975 
47,788,7.^3 


506,215,708 


532,671,567 


169,818 

1 00,  coo 
68,000 


394.500 

2,390,158,000 


82,270,400 
48,000 

41,100,000 

584.086,351 

166,913,580 
♦323,182,000 

5,940 
130,000 


861,103,500 


€ 
35,111,065 
463.941 
25.575.006 
58,234,000 
46,565,000 
25,571,000 
6,277,000 

1,280,000 

106,548,000 
107,067,000 

281,000 
37.250,000 

530,000 

5.154,238 

12,1^7.044 
396,914,282 


422,489,288 


3,130,000 


91,370 

210,000 

160,000 

8.8 14 

8,000 

74,600 

1,765,712,000 

3,087,600 


424 

34,222,000 
84,140,469 

62,468,806 

160,831,000 
29,878,500 
47,050,000 

202,650,484 


5,940 
130,000 

JO,795 
400,000 

823,703.000 


Note. — Ebtimate  as  in  House  of  Commons 
plementary  Grants. 
♦Excluding  sales  through  joint  stock  and  private 


4, 985. 82  ,656    i    3,640,463.100 
Paper  No.  75  of  1917,  and  Sup- 
banks  not  yet  brought  to  account. 


Expenditure 

AMD  OTHER   IsSUES. 


Estimate  foe 

the  Year 

I9I7-I8. 

(See  note.) 


I   Total  Issues 

out  of  the  Ex- 
jchequertomeet 
ipaymeots  from 
jApril  I,  1917,  to 
{     Feb,  2.  1918. 


-  Total  Issues 
out  of  the  'Ex* 
chequer  to  meet 
payments  from 
April  I,  1916,  to 
reb.  3i  <9i7- 


l 

17,000,000 
194,500,000 


9,700,000  1 

1,695,000 
2.543.830.000  > 


2,766.725  OOP  '  2,2*8,382,274 


D     Exchequer 
Expenditure 


EXPEKDITURE. 

Permanent  Charge  of  Debt 
Interest,  &c.,  on  War  Debt 
Payments  to   Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    

Expenditure    

Other  Issues. 

For  Advances  for  Bullion 

For   Advances    for    Interest    1 

Bonds    under     the     Capital 

(Mone^)  Act,  1904 

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903  .. 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supply * 

For    Exchequer    Bonds    under    the    Ca; ital 

Expenditure  (Money)  Act,  19O4    

For  Exchequer  Bonds  underthe  Cunard  Agree-; 

merit  (Money)  Act,  1904 

For  War  Loans,  Exchequer  Bonds,  &c,,underl 

Section  34  of  Finance  Act,  1917  j 

For  other  Debt  under  the  War  Loan  Acts,' 

1914  to  1917 

For  Depreciation  Fund  under  the    Finance 

Act,  1917 

0)d     SinMng    Fund,     1907-8,    issued    under 

Section  9  of  the  Finance  Act,  1908 

Old    Sinking    Fund,    1910-11,    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  (b) 
Old  Sinking  Funds,  1911-12  and  1913-14,  issued 

under     the    Anglo  -  Persian    Oil    Company 

(Acquisition  of  Capital)  Act,  1914 

East  Africa  Protectorate  Loan  Repayments- 

IsEued  to  reduce   Debt  under  the   Finance 

Act,  1911    

Cunard  Loan  Repayts.— Issued  to  reduce  Debt 

under  the  Cunard  Agreemt.  (Money)  Act,  19041 
Suez  Canal  Dnawn  Snares — Issued  to  reduce' 

Debt  under  the  Finance  Ac4,  1898 \ 

China     Indemnity — Issued    to    reduce    Debtj 

under  the  Finance  Act,  rgo6    

Temporary  Advances  repaid-— Ways  and  MeanS' 

(incbdg.  Treasury  Bills  £344,696,000  in  1916-17} 


c 

17,006.991 
149. }'".<>> 

7,083,186 

1,508,098 
1, 083,265, B87 


2,320,000 

169,818 
115,000 
95.000 


394.500 

1,781,586,000 


1,300,000 

'0,783.35» 

4«.3;6.a+* 

29,139,223 

lo.coo 

so,coo 

949,000 

5.940 

130,000 


840,849.00c 


c 

16,003,300 

101,92;. 294 

6.977,39S 

:.699.83» 
1, 6 14,  r  36.554 


l.75».7«4,37» 


Balances  in  Exchequer — 

Bank  of  England 

Bank  of  Ireland 

Total 


1018.     I     1917. 
Feo.  2.       Feb.  3. 

I     \     -c      \ 

13,102,606  21,503,241! 
2,093,702'    2,129,966 


4,970,623,348 


15.196,308 

4,985,821,656 


3,350,000 


91.370- 

210.000 

aoc,oaa 

8,008 

8,000 

98,900 

1.383.529.000 

3,067,600 


417.785 
9.*5'.957 

94.O0O 
53. '60 

230.000 

5.940 
130,000 
10,795 

400/X)0 

461,489,000 


3,616,829.893 


23.633,207 


3,640,463,100 


MBU0.-*Treasury  Bills  outstanding  on  Feb.  2,  Z916  *iC'i072, 751,000. 

*  Includes  £482,000,  the  proceeds  of  which  were  not  carried  to  the  Exchequer 
within  the  period  of  the  account,  besides  an  amount  (not  yet  ascertained  and 
brought  to  account)  for  Bills  tendered  as  subscription  to  National  War  Bonds. 


ourselves,  together  with  Italy,  deprived  of  the  co-opera- 
tion of  Russia,  would  have  been  in  grievous  straits  but 
for  American  help. 

Coal  shipments  from  the  United  States,  Fuel  Ad- 
ministrator Garfield  has  announced,  will  be  limited 
strictly  to  shipments  for  war  purposes  and  those  neces- 
sary to  be  sent  in  exchange  for  commodities  urgently 
needed  in  the  United  States.  In  no  case  will  exports 
be  permitted  to  equal  in  volume  those  of  last  year.  All 
sliipments,  moreover,  must  be  subject  to  the  approval 
of  the  War  Trade  Board,  which  will  supervise  all  con- 
tracts and  make  allotments. 

The  usual  exhibit  of  the  stock  of  money  in  the  United 
States  on  January  i  df  this  year  discloses  remarkable 
changes  compared  with  twelve  months  before.  Gold 
coin  in  circulation  has  risen  to  $972,561,000  compared 
with  $679,703,000  at  the  beginning  of  1917,  but  gold 
certificates  have  fallen  from,  $1,660,030,000  to 
$1,096,861,000.  Silver  certificates  remain  about  the 
same,  but  there  is  an  increase  of  nearly  $930,000,000 
in  the  amount  of  Federal  Bank  notes  outstanding,  the 
total  on  the  first  of  last  month  having  risen  to 
$1,227,243,190.  There  is  a  further  decline  in  the 
National  Bank  notes,  but  the  total  is  still  $704,920,000, 
or  barely  $4,000,000  less  than  a  year  ago,  and  the  de- 
cline in  the  "  greenbacks  "  outstanding  is  barely 
$3,500,000.  Altogether,  however,  the  money  in  circu- 
lation has  risen  by  about  $680,000,000  during  the  year 
to  a  total  of  $5,120,425,000.  As  the  population  of  the 
continental  United  States  is  estimated  at  105,006,000, 
this  represents  per  head  a  circulation  of  $48.76. 

We  are  glad  to  have  Mr.  Daniels',  head  of  the 
American  Navy,  assurances  that  "  the  United  States 
and  its  Allies  are  winning  against  the  submarines."  He 


added,  "  we  are  having  our  ups  and  downs,  but  the 
fight  is  being  won. "  And  on  the  heels  of  this  assurance 
came  the  torpedoing  of  the  transport  Tuscania,  an 
.Anchor  Line  vessel  of  14,384  tons,  carrying  .'\merican 
troops.  Happily  only  210  were  lost  out  of  a  total  of 
2,397  on  board,  and  this  is  the  first  transport  lost.  We 
hope  it  may  be  the  last,  but  the  submarine  is  not  yet 
vanquished,  and  sinking  transports  is  jjermissible  war- 
fare. 


Notes  on  Books. 


Siock  Exchange   Y ear-Book.     Thos.    Skinner  and  Co.,  Gresham 
House,  Old  Broad  Street.    Price  -353.  nett. 

We  have  before  us  the  second  issue  of  the  "  Stock  Exchange 
Year-Book" — the  first,  unfortunately,  has  got  lost  or  mislaid. 
It  is  a  modest  little  volume,  dated  1876,  and  contains  260  pages, 
while  the  preface  tells  us  that  "the  first  issue  comprised  in- 
formation relating  to  in\'e5tments  representing  the  vast  sum 
of  nearly  four  thousand  and  a-half  millions  sterling,  and  yet 
many  companies  and  stocks  were  omitted.  Upwards  of  three 
hundred  companies  have  been  added,  and  the  number  is  now 
as  nearly  as  possible  double  the  number  quoted  in  the  London 
Stock  Exchange.".  Even  in  these  far-off  days,  and  with  such 
modest  beginnings,  the  Year-Book  proved  indispensable  to 
dealers  in  stocks  and  shares,  and  the  publication  has  now 
reached  its  forty-fourth  year  of  issie.  The  body  of  the  work 
occupies  2,344  pages,  against  2,286  pages  last  year,  in  addition 
to  the  index  and  preface,  and  it  is  an  infallible  reservoir  of 
'information  about  nearly  every  concern  whose  secvrities  are 
dealt  in  on  the  Stock  Exchange.  In  several  respects  we  prefer 
it  to  the  bulkier  "  Official  Intelligence,"  as  it  frequently  goes 
more  fully  into  the  history  of  company  and  other  securities 
It  is  mentioned  in  the  preface  that  at  the  end  of  April  last  ther. 
were  66,130  companies  in  existence,  with  a  total  capital  of  2,73^ 
millions,  as  against  64,690  companies,  with  a  capital  of  2.5,;- 
millions,  in  April,  11114.  Last  year  the  death  rate  was  very 
high,  4,066  companies  disappearing,  as  compared  with  3,114  in 
1913-14. 


February  9,   1918. 


Ube  Jnvestoca'  TRevtew. 


'56 


I 


DIVIDENDS     ANNOUNCED. 


3' 


Arthur  Guinness,  Son  and  Co.— Inttriin  of  6  per  cent,  on 
the  ordinary  stock,  being  at  rate  of  12  per  cent,  per  annum,  free 
of  tax,  the  same  as  a  year  ago 

Bristol  Gas  Co. — For  the  half-year  ended  Dec.  31  at  the  rate 
of  5  per  cent,  per  annum  on  the  nominal  capital  entitled  to 
dividend. 

Uisichi  Tin  Co.  (Nigeria). — Interim  of  5  per  cent.,   less  tax. 
Bambrakelly  (Ceylon)  Tea  and  Rubber  Co. — Interim  of  5  per 
cent,  (actual)   for  year  ending  Mar.   31,  1918,  payable  Feb.  12, 
less  tax. 

Barry  Railway  Co; — For  the  past  half-year  at  the  rate  of  gi 
per  cent,  per  annum,  with  ;^6,8o7  forward. 

Broken  Hill  Proprietary  Block  10  Co. — (No.  112)  13.  per  share, 
less  tax,  payable  Mar.  6,  the  same  as  a  year  ago. 

Cardiff  Railway  Co. — For  year  ended  Dec.  31  of  ij  per  cent, 
on  the  ordinary  shares. 

City  and  South  London  Railway.— For  the  six  months  ended 
Dec.  31  of  j  per  cent.,  making  ij  per  cent,  for  1917.  The  sum 
of  ;£2i,265  is  carried  forward. 

Cornwall  Tailings  Co. — is.  per  share,  less  tax,  payable  Feb.  28, 
the  same  as  a  year  ago. 

Consolidated  Main  Reef  Mines  and  K-itate. — (No.  19)  for  the 
six  months  ended  Dec.  31  at  the  rate  of  5  per  cent.  (is.  per 
share)  on  shares  numbered  from  i  to  924,354  inclusive,  and  at 
rate  of  2J  per  cent.  (6d.  per  share)  on  shares  numbered  from 
924,365  to  1,247,602  inclusive. 

Central  London  Railway  Co. — For  the  six  months  ended 
Dec.  31  on  deferred  ordinary  stock  for  year  of  3  per  cent. 
_^' 1 1. 1 47  is  carried  forward. 

Carreras,  Ltd. — At  the  rate  of  12  per  cent,  per  annum  for  half- 
year,  making  10  per  cent,  for  year  ended  Oct.  31,  the  same  as 
for  the  preceding  12  months;  ;j2S,ooo  to  reserve;  forward, 
pf  44.227. 

Clarkson's  Old  Brewery,  Barnsley. — Interim  of  los.  per  share 
on  the  ordinary,  free  of  tax.  ' 

Delhi,  Umballa,  Kalka  Railway  Co. — Firal  for  year  ended 
Sept.  30  of  4  per  cent.,  together  with  a  bonus  of  3  per  cent,  on 
ordinary  stock,  making  a  total  payment  of  12  .per  cent,  per 
annum,  against  10  per  cent,  payable  less  tax,  at  3s.  gd.  in  the  {^, 
on  Feb.  25. 

Exploration  Company. — 5  per  cent.,  or  6d.  per  share,  free 
if  tax,  against  is.  a  share  a  year  ago. 

Furness  Railway. — At  rate  of  ■i\  per  cent,  for  half-year  ended 

December  3r  on  the  ordinary  stock,  making,  with  interim,  2% 

it.  per  annum,  compared  with  2%  per  cent,  for  previous 

ear.     ^^7,492  to  reserve,  ^11,091  forward. 

Guest,  Keen,  and  Nettlefolds. — Interim  for  six  months  ended 

'ec.   31  of  IS.   per  share  on  ordinary  shares,  free  of  tax,  to  be 

aid  on  Feb.  26 ;  the  same  as  a  year  ago. 

Henry  Bessemer  and  Co. — Further  12^  per  cent,  for  year  on 
'ordinary  shares,  making  15  per  cent.,  less  tax,  for  the  year, 
against  12^  per  cent. 

Humphreys  (Limited),  Knightsbridge.—  10  per  cent,  per 
annum  on  ordinary  shares  for  the  year  ended  Nov.  30. 

Hull  and  Barnsley  Railway  Company. — Interim  of  i  per  cent, 
absorbed  ;f 33,000;  final  2j  per  cent.,  against  2J  per  cent., 
making  3J  per  cent,  for  year,  against  3  per  cent. 

Isle  of  Wight  Railway  Company. — Final  on  ordinary  stocks 
of  2  per  cent,  on  preferred  and  \%  per  cent,  on  the  deferred 
converted  ordinary,  making  for  the  whole  year  4  per  cent,  on 
the  preferred  and  2^  per  cent,  on  the  deferred  converted 
ordinary,  the  same  as  in   1916. 

Lancashire  Shipping  Company. — Final  20  per  cent.,  making 
30  per  cent,  for  the  year.     This  is  the  same  as  a  year  ago. 

London,  Brighton  and  South  Coast  Railway. — £t,  17s.  6d. 
per  cent,  for  past  half-year  on  undivided  ordinary  stock,  mak- 
ing jfs  per  cent,  for  the  year  1917,  the  same  as  for  1916 ; 
]f3  iss.  per  cent,  for  half-year  on  preferred  ordinary  stock,  mak- 
ing maximum  6  per  cent,  for  the  whole  year,  and  £1,  per  cent, 
for  year  1917  on  deferred  ordinary  stock,  the  same  as  for  1916, 
leaving  about  £'i\f>?>A  to  be  carried  forward,  as  compared  with 
;lf3°,I28. 

London    Electric    Railway    Company. — | 
months  ended  Dec.  31,  making  i^  per  cent. 

London  and  South-Western  Railway. — 3^ 
5i  per  cent,  for  year,  the  same  as  for  1916. 

London  General  Omnibus  Company.- 
ordinary  shares  for  six  months  ended  Dec. 
cent,  in  all. 

Merchants'  Marine  Insurance  Company. — 3-s.  gd.  per  share, 
free  of  tax,  making  12-L  per  cent,  for  the  year  1917,  the  same  as 
for  1916. 

Metropolitan  District  Railway  Company.— For  the  six  months 
ended  Dec.  31  on  the  ^  per  cent,  second  preference  stock  for 
the  six  months  ended  Dec.  31  of  li  per  cent.,  making  3  per  cent, 
for  the  year. 

Midland  Railway  Company.— At  the  rate  of  2^  per  cent,  on 
preferred  ordinary,  and  4  per  cent,  on  the  deferred,  the  same 
as  a  year  ago. 

Miller,  Rayner,  and  Haysom.- Interim  of  3  per  cent,  on  the 
ordinary  shares. 

No.  272  of  IS. 


per    cent,    for    six 

for  191 7. 

per  cent.,  making 


-3     per     cent. 
31,   making   7 


on 
per 


Mount  Morgan  Gold  Mining  Company.- 
fshare,  less  tax,  payable  March  i. 


per 


Read  Brothers. — Final  6  per  cent,  on  ordinary  shares,  and,  as 
on  previous  occasions,  a  bonus  of  a  per  cent,  on  both  classes  of 
shares  (making  for  whole  year  7  per  cent,  on  preference  and  12 
per  cent,  on  ordinary  shares),  less  tax. 

Rhymney  Railway. — At  rate  of  5  per  cent,  on  ordinary  stock 
for  the  half-year  to  Dec.  31,  forward  ^2,998. 

St.  James's  and  Pall  Mall  Electric  Light  Co. — 5s.  6d.  per 
share  on  ordinary  shares  for  half-year  ended  Dec.  31,  making 
with  interim  a  total  distribution  of  9  per  cent,  for  the  year, 
against  8  per  cent,  for  1916. 

Telegraph  Construction  and  Maintenance  Co. — The  directors 
propose  to  distribute,  in  addition  to  interim  of  5  per  cent,  paid 
in  July,  a  further  dividend  of  10  per  cent.,  together  with  a 
bonus  of  I2S.  per  share. 

Tottenham  District  Light,  Heat  and  Power  Co. — At  rate  of 
si  per  cent,  per  annum  on  the  "  A  "  stock  and  4  per  cent,  per 
anniun  on  the  "  B  "  stock  in  respect  of  half-year  ended  Dec.  31. 
The  dividends  for  corresponding  period  were  at  rate  of  5  per 
cent,  per  annum  on  the  "A"  and  3^  per  cent,  per  annum  on 
the  "  B  "  stocks. 

Underground  Electric  Railways  Co.  of  London. — Final  2 
per  cent.,  free  of  tax,  on  6  per  cent,  income  bonds  of  1948  for  the 
half-year  ended  Dec.  31,  making  4  per  cent.,  free  of  tax,  for  the 
year  1917. 

United  Serdang  (Sumatra)  Rubber  Plantations. — Final  for 
year  ended  August  31  at  the  rate  of  20  per  cent.,  less  tax,  against 
15  per  cent. 

Vale  of  Glamorgan  Railway. — At  rate  of  4^^  per  cent,  per 
annum,  with  .^192  forward,  against  ;^286  a  year  ago,  when  the 
dividend  was  at  same  rate. 

Westminster  Electric  Supply  Corporation. — Final  at  rate  of 
10  per  cent,  per  annum  for  half-year  ended  Dec.  31,  making  9 
per  cent,  for  the  year,  as  compared  with  7  per  cent,  for  1916. 


Ans^veps  to  Coprespondents. 

*.*  A  Koy  to  those  Answers  vt/lll  be  posted  early 
each  week  tor  a  subscription  of  ONE 
GUINEA  per  annum.  Its.  for  six  months,  or 
Ss.  9tl.  tor  three  months. 

Deposits  against  future  Queries  may  be  lodQeti 
with  the  Publisher. 

W.  G. — (i)  Ca-pital.  An  excellent  Calcutta  weekly,  and  ob- 
tainable  from  Messrs.  Grindlay  and  Co.,  54,  Parliament  Street, 
S.W.  (2)  h.  fine  property,  but  shares  seem  too  dear  for  present 
investment.  (3)  We  doubt  it.  Outlook  too  obscure.  (4)  Labour 
shortage  and  absence  of  demand  at  ports.     Wait  a  bit. 

C.  J.  C. — (1)  A  well-managed  concern,  and  we  see  no  objec- 
tion to  holding  them.     (2)  Also  quite  good  to  keep. 

H.  H.  M. — (i)  The  dividend  is  slightly  better,  and  price 
should  creep  up  a  little.  (2)  The  country  is  slowly  settling 
down,  and  with  more  stable  government  the  bonds  would  im- 
prove rapidly.  Unless  you  have  something  in  view  with  more 
certainty  of  a  quick  rise  it  seems  a  pity  to  sell  either  of  these 
stocks. 

S.  L.  W". — W'e  do  not  think  any  of  them  are  worth  buying  for 
a  rise. 

J.  G.  R. — Quite  a  fair  speculative  purchase  if  you  are  pre- 
pared to  wait.     Meanwhile  they  give  a  fair  return. 

Tree. — We  do  not  like  either  of  them.  The  information  about 
them  is  too  vague. 

E.  V.  \. — Yes,  quite  a  good  idea. 


OILFIELDS    PRODUCTION. 

Ural  Caspian  Oil. — Total  for  week  to  Jan.  17,  2,121  tons. 


Padang  Jawa  Rubber  Estate.— Interim  of  6'-  per  cent.  (ijd. 
^per  share)  actual,  on  account  of  the  year  ending  March  31,  the 
*■  ""me  as  a  year  ago. 


The  seventh  War  Loan  of  the  Hohenzollern  Empire  seems  to 
have  been  almost  as  unpopular  as  the  Hungarian  one,  although 
it  is,  of  course,  boasted  about  as  another  great  success.  The 
proof  of  success  lies  in  the  extent  of  the  popular  support,  and  it 
is  said  that  subscriptions  below  ;^ioo  provided  in  all  less  than 
;^75,ooo,ooo,  although  the  number  of  small  subscribers  is  arti- 
ficially raised  in  Germany  by  commandeering  the  savings  of 
young  workmen.  Not  only  did  the  amount  subscribed  by  the 
working  classes  turn  out  to  be  small,  only  about  12  per  cent,  of 
the  totdl,  but  the  number  of  subscribers  of  all  descriptions  fell 
off  seriously,  were,  in,  fact,  1,500,000  fewer  than  those  for  the 
previous  loan. 

Wax  from  Sugar-Cane. — Wax  for  some  time  past  has  formed 
one  of  the  by-products  of  the  sugar  industry  in  Natal,  and  its 
manufacture  is  now  making  very  active  progress.  The  process 
(which  is  patented)  is  somewhat  intricate,  but  the  treatment 
applied  to  an  otherwise  waste  product  (filter  press  cake  from  the 
sugar  factories)  results  in  the  production  of  a  very  fine,  hard, 
vegetable  wax,  practically  equal  in  value  to  Carnauba  and 
beeswax,  with  which  latter  it  is  chemically  almost  identical. 
The  wax  has  a  high  melting  point,  and  takes  a  very  high 
polish.  About  250  tons  of  this  wax  have  been  shipped  to 
London  during  the  past  two  years,  and  the  demand  appears  to 
be  unlimited. 


'56 


tlbe  investors'  "Kevlew, 


February  9,  1918. 


Tea,  Oil  and  Rubber. 


There  is  a  grim  sort  of  humour  about  ihe  proposals 
for  restricting  the  production  of  rubber  by  20  fK,r  cent. 
all  round  that  must  appeal  to  everybody  except  those 
dour  Scotchmen  who  manage  most  of  the  best  planta- 
tions. Of  course,  the  <vrit  of  the  Rubber  (irowers' 
Association  has  scarcely  yet  started  to  run,  but  glancing 
through  the  January  outputs  it  is  decidedly  amusing  to 
find  that  the  subsidiaries  of  the  Rubber  Plantations  In- 
vestment Trust  much  more  than  doubled  their  yield. 
Bah  Lias  turned  out  64,250  lbs.  against  17,300,  Badjoc 
Kidoel  was  well  over  the  double  mark  at  62,000  lbs., 
Djasinga  got  60,000  lbs.  against  33,670,  the  Emerald 
63,500  lbs.  against  42,500,  and  the  Johore  iig,ooo  lbs. 
against  63,000.  Of  course,  it  is  quite  possible  that  all 
these  yields  might  have  been  increased  by  20  per  cent, 
or  even  much  more,  but  the  superficial  observer  may  be 
forgiven  if  he  fails  to  catch  the  point,  .^nd  in  spite  of 
the  shortage  di  shipping  facilities,  the  arrivals  last  week 
were  676  tons,  or  just  100  tons  more  than  consumers  re- 
quired to  be  delivered,  so  that  the  statistical  position  is 
not  visibly  improving. 

Under  these  circumstances  it  is  not  very  surprising 
that  the  market  for  the  commodity  shows  little  elas- 
ticity. The  price  for  standard  crepe  hovers  around 
2S.  3d. — .sometimes  ^d.  or  so  more — but  the  good  old 
day  of  4s.  and  5s.  seem  a  long  way  off,  however  the 
manipulators  may  try  to  put  a  better  complexion  on 
things.  There  is  a  theory  that  the  recent  weakness  is 
due  to  the  fact  that  German  purchases  were  made  on  a 
large  scale  in  the  United  States  before  the  latter  joined 
the  Allies,  and  that  the.se  have  since  had  to  be 
liquidated.  There  may  be  some  truth  in  the  statement 
— we  have  no  means  of  checking  it  one  way  or  the 
other — but  with  German  finances  in  the  condition  that 
must  be  obvious  to  anyone  who  looks  into  the  matter,  it 
is  difficult  to  believe  that  even  if  the  story  is  true,  it 
could  have  the  effect  that  is  pretended  in  some  quarters. 
We  should  say  that  the  much  more  simple  explanation 
is  that  production  is  considerably  exceeding  the  esti- 
mates, and  that  the  bulls  are  becoming  increasingly 
nervous. 

The  Tea  Brokers'  Association,  in  its  monthly  report, 
takes  a  rather  unfavourable  view  of  the  position,  and 
in  the  course  of  its  comments  says  that  the  changes  of 
the  past  month  in  the  tea  market  are  a  record  of  the 
general  endeavour  made  to  adjust  the  well-established 
methods  of  an  old  business  to  the  exigencies  o^f  the 
situation.  The  unavoidable  diversion  of  much  tea  to 
ports  that  had  only  very  limited  facilities  for  handling 
has  added  to  the  difficulties  of  distribution  ;  strenuous 
efforts  are,  however,  being  made  in  all  quarters  to  get 
the  new  system  into  working  order.  We  are  hopeful 
thaf  the  increasing  supplies  will,  so  far  as  tea  is  con- 
cerned, save  us  from  the  misfortune  of  rationing.     The 


imports  at  various  ports  have  been  fairly  large  during 
the  past  month,  ihe  increasing  shortage  of  transport 
and  labour  are,  however,  rendering  the  handling  and 
removal  of  arrivals  difficult ;  the  distrfijution  of  the  tea 
from  the  ship  to  the  consumer  is  consequently  a  some- 
what protracted  business.  It  is,  however,  satisfactory 
that  our  depleted  supply  is  Ijeing  replenished,  and  we 
expect  that  the  retail  [wsilion  will  now  gradually  im- 
prove. It  must  at  the  same  lime  Ix;  borne  m  mind  that 
as  both  the  wholesale  trade  and  the  shopkeepers  are 
working  on  practically  zero  stocks,  the  available  weekly 
supply  will  be  quickly  absorbed  by  the  con.sumer. 

It  has  taken  the  British  Burmah  Petroleum  Co.,  Ltd.,       ^ 
quite   a  time  to  get   honw,     but    circumstances    have       <! 
favoured  it  recently,  and  it  has  done  surprisingly  well       = 
in  the  past  year.      lo  July  31   last  gross  proh'ts  were        -, 
;£,"4i,ooo  up  at  close  on  ;^'30o,oc)o,  out  of  which  charges        ', 
absorbed    ^^39,500,   and    debenture    interest    ;£r36,ooo,        ; 
while    £.72,7S°    ^"^■'»   ^'^^    aside   for  depreciation.     The       1 
balance   i<»'_^' 15 1,000,    which   allows   of  a   dividend  of       H 
2  2-5d.  on  the  ordinary  shares,  while  ;^i 5,000  has  been        \ 
placed  to  reserve,  ;£^25,740  is  set  aside  for  depreciation,        : 
;^i5,ooo      to     commission     account,      and      ;£^45,ooo 
is     carried     forward.       The     company      has     had     a 
long     row    to    hoe    before     it    came    anywhere    near 
ju.stifying     its     existence,      but     it     loolcs     now      as 
though  it  would  prove  a  most  profitable  concern  when 
it  gets  properly  established.    We  know  from  what  the 
great  Burmah  Oil  Co.  has  done  that  there  must  be  a 
big  field  for  any  other  concern  operating  in  the  same 
district,  and  it  is  not  i#ireasonable  to  suppose  that  the 
British  Burmah  will  ultimately  justify   its  existence. 


The  Week  in  Mines. 


Business  in  the  Mining  M.nrkots  this  week  has  been  quite 
satisfactory,  and  movements  m  prices  have  generally  been  in 
favour  of  holders.  Much  of  the  activity,  however,  has  been  in 
the  more  speculative  descriptions,  and  there  are  distinct  signs 
of  professional  attempts  to  put  life  into  shares  of  properties 
that  have  lain  dormant  for  years,  and  the  danger  to  the  public 
of  participating  in  these  movements  is  quite  obvious.  Investors 
would  do  well  to  leave  these  shares  severely  alone. 

South  and  West  Africans. 

A  prominent  feature  in  tho  South  African  market  has  been 
the  weakness  of  Braipans,  which  fell  to  5J,  on  the  quarterly 
report  showing  an  increase  of  214,000  tons  in  the  ore  reserves 
during  1917,  but  a  decrease  of  39,000  tons  :n  the  second  half  of 
the  year.  This  decrease  is  due  to  the  elimination  of  certain 
large  blocks  of  low-grade  ore  which  ha.'e  hitherto  been  con- 
sidered payable,  but  are  no  longer  l-o  at  the  present  abnonnally 
high  costs  of  working.  Heavy  rains  have  put  a  stop  to  de- 
velopment work  on  the  Daggafontein  property,  and  the  shares 
have  fallen  3-32  to  i^.  Other  members  of  the  C.M.S.  group 
have  weakened  in  sympathy.  On  the  other  hand,  New  Modder- 
fonteins  have  risen  f  to  23J,  Central  Minings  to  t-fg.  Gold 
Mines  Investments  is.  3d.  to  i8s.  3d.,  Mozambiques  is.  6d.  to 
17s.  6d.,  and  Modder  Leases  iV  to  3  25-32.  Profit-taking  has 
caused  a  reaction  in  Rhodesian  shares ;  Lonely  Keefs  have  re- 
lapsed IS.  to  37s.,  Falcons  is.  gd.  to  27s.  3d.,  and  Gaikas  } 
to  ij.  Tanganyikas,  however,  have  improved  to  3  19-32.  In 
the  Diamond  section,  Dc  Beers  Deferreds  have  declined  J  to 
12J.  A  number  of  low-priced  West  Africans  have  been  gal- 
vanised into  life,  but  they  should  be  left  alone  by  outsiders. 
Gold  Coast  Amalgamateds,  however,  have  risen  is.  3d.  to  jgs. 

Copper   akd    Miscellaneols. 

Copper  shares  have  been  in  request.  Rio  Tintos  have  risen  J 
to  64J,  and  Hampdcns  at  32s.,  Mount  Lyellsat  27s.  and  Arizonas 
at  2-iV  are  firmer.  Tin  shares  have  been  actively  supported, 
partly  on  account  of  the  rise  in  the  metal  to  over  /^3oo  a  ton. 
Dolcoaths  and  South  Croftys  have  beem  buoyant  on  the  former's 
acquisition  of  the  Tehidy' estate,  and  en  the  iatter's  reported 
cutting  of  the  East  Pool  lode;  the  former  has  risen  is.  gd.  to 
139.  6d.  ex  rights,  and  the  latter  is  4s.  3d.  higher  at  32s. 
Renongs  at  2\,  Mongus  at  15s.  (kJ.,  and  Geevors  at  iqs.  3d.  are 
all  appreciably  higTiCT.  Good  support,  chiefly  on  Colonial 
account,  has  been  forthcoming  for  Broken  Hills.  Norths  have 
risen  2s.  to  59s.  6d.,  South  Silvers  -J  to  loj.  Block  Tens  is.  qd, 
to  28s.  3d.,  and  Zinc  Prefs.  is.  3d.  to  54s.  3d.  Among  Westra- 
lians,  Ivanhoes  have  risen  i  to  2,^,  on  favourable  news  from 
the  mine,  and  Chillagoes  have  been  .actively  dealt  in  again  at 
about  IS.  3d.  ;  the  report  showing  an  increase  in  the  debit 
■  balance  from  £<)o,c(x)  to  /i33-3"9  sugge.sts  no  reason  why  the 
shares  should  be  bought.  In  the  American  group,  Casey  Cobalts 
have  risen  gd.  to  7s.,  and  New  Chuquitambos  7-32  to  19-32- 
Russian  shares  have  improved  somewhat,  and  Indian  shares 
have  been  in  request,  including  Nundydroogs  at  26J.,  Balaghats 
at  43.  3d.,   and   Burmas  at  4J. 


February  9,   igi8. 


Zbc  investors'  IRevtew. 


157 


MINING    NEWS. 


■ 


Rhodesian  Mineral  Odtpht. — The  production  of  gold  in 
December  was  ;^27o,6i6,  a  decrease  of  ^37,589.  The  year's 
total  shows  a  decrease  of  ;f399,958  on  the  same  month  of  last 
year.  The  following  table  shows  the  production  since  Jamiary, 
1913;— 


Month. 

1913.              1914. 

1915. 

1910. 

1917. 

January  

February    

Marcb 

£        ■.        £ 
220,776        249,032 
208,744         259,888 
257.797    .    273,236 
241,098         295,907 
242,452    i     290,062 
241,303     [    306,421 
249,301         320,670 
250,576    ,     316,972 
230,429         309,398 
247,068    i     337,241 

239,036      j      3li,7'l 
254,6«7      i      309,669 

£ 
293.133 
286,78, 
299,»«6 

322,473 
336,565 
344.493 
321,085 
339.967 
313,160 
331,376 

318:586 
313,769 
335,368 

339,385 
323,783 
333,07« 
322,365 
338,001 
322,035 
323,605 
317,135 
306,205 

£ 
296,113 
289,734 
300,183 

April    

May 

June 

July 

AugHSt 

September 

October 

Novenber 

December 

297,977 
299,271 
302,195 
288,731 
294,359 
291,367 
289,978 
275,830 
270,616 

Totals. . 

2.903,267 

3,580,207 

3,823,166 

3,895.311 

3,495,353 

m 


The  number  of  producers  was  192,  or  17  more  than  in  November, 
and  the  output  of  other  metals  was  18,577  ounces  of  silver,  50,809 
tons  of  coal,  332  tons  of  copper,  493  tons  of  asbestos,  and  19 
carats  of  diamonds. 

Springs  Mi.nes.— The  I'eport  for  the  December  quarter  show.s 
that  the  working  profit  for  the  year  was  ;^"2b6,ii7,  and  the  nett 
profit  ^260,386.  No  allowance  has  been  mat'o  for  taxation  in 
arriving  at  these  figures.  Reserves  of  ore  have  been  increased 
by  783.000  tons  to  2,567,000  tons,  valued  at  9.8  dwts.  over 
58  inches. 

Brakpan. — For   the   year   ended    December   31     the     working 
profit  was  ;£484,95i-,  and  the  nett  profit.  .^'474,003,  which  com- 
pare  with    ;^'4i3,226    and    ^,^402, 908    respectively    for    1916.     No 
allowance  has  been   made  in  these  figuies  for   taxation   or  per- 
centage of  profits  payable  in  connection  with  the  acquisition  of 
the   Brakpan   lease  and    Schapenrust  claims.     Reserves   of   ore 
have  been   increased  by  214,000   tons   to  3,268,000   tons,   valued 
lat  9.2  dwts.  over  67  in.     The  extension  of  the  reduction  plant 
Ifrom  60,000  to  75,000  tons  monthly  has  been  completed.     The 
capital  has   been   increasedi  during  the  quarter  by  jfi3o,soo  to 
i;£  786,100. 

Alaska    Goldkields. — The   report   for    1917   shows   that   the 
aount  ot   dividends  received  during  the  year  was  ^^5,401,  as 
against  ^^0,514.       No  dividend  has  yet  been  paid  on  the  com- 
aon  shares  of  the  Northern  Commercial  Co.,  but  the  .business 
bf    that    com^)any    continues    to    be    most    satisfactory,     and    iif 
normal   conditions  had   prevailed   a  substantial  dividend  might 
have   been   expected.     The   Northern    Navigation   Co.    has  now 
Iredoeined   at  par  the  remaining    11,214  pretorred    .-hares    of  $5 
reach  held  by  the  Alaska  Goldfields.     It  is,  therefore,  proposed 
fto  distribute   the   surplus  capit.il   in   hand  by  returning   is.  per 
share  to  the  shareholders.     This   will   involve   a   reduction   in 
the   capital   from  ;^2o2,5oo  to  ;ifi87,5oo,  the  nominal   value  of 
each   share  being  lowered  from    13s.  6d.   to  12s.    6d. 
L     Falcon    Mine.s.— The   full   report,    issued   this  week,    shows 
Ithat  during  the  year  ended  June  30  the  outstanding  debenture 
^debt  was   reduced    by    ;f29,3o3    to   ^238,038.     The   ore   reserves 
were  increased  from   862,066  tons  to  904,122  tons,   but  at  Sep- 
tember 30  last  the  total  was  reduced  to  859,026  tons,  valued  at 
66s.    7d.    iper  ton.     There    were   treated    203,049    tons    of   ore, 
which  yielded  3,414  tons  of  copper,    35,247  ozs.   cf  gold,    and 
70,876  ozs.  of  silver,  valued  at  548,144,  or  54s.  per  ton.     Work- 
ing costs  averaged  35s.   5d.   per  ton,  an  increase  of  4s.  gd.   per 
ton,  and  the  mine  profit  was  ;^i88,443,  <"■  '^^-  6d.  per  ton.     In 
the  first  quarter  of  the  current  year  a  working  profit  of  ,^45,806 
was   made.     Operations  resulted   in    a   profit    of  ;fi94.266,    and 
a  nett  profit  ot  ;fi76,i37,  an  increase  of   ;^4i,87i.     The  divi- 
dend of  20  per    cent,    absorbs    /'8o,ooo,    and    ^106,894,   against 
/40,75s,  is  carried  forward,   subject  to   excess  profits  duty. 


What    Balance   Sheets   Tell. 


NORTHAMPTONSHIRE    UNION    BANK,   LTD. 

Results  for  the  pa-sit  year  were  very  similar  to  those  of  1916. 
Xett  profits  were  /i;6oo  higher,  but  the  amount  brought  in 
wa.s  smaller,  and  the  divisible  balance  is  almost  identical  at 
^80,970.  After  again  paying  two  dividends  of  15s.  each,  /io,ooo 
agamist  ^20,000  is  set  aside  as  investment  reserve,  and  the 
carry  forward  is  increased  by  /io,ooo  to  ;^i6,97o.  Deposit  and 
current  accounts  are  ;^56o,ooo  higher  at  ^£4, 758, 000,  and  cash 
13  up  ;f  102,000  at  jf 641, 000,  while  investments  have  increased 
;^2oo,ooo  to  ^2, 742,000,  and  loans,  &c.,  ;(f23o,ooo  to  ^^2,050,000. 

YORKSHIRE   PENNY    BANK.   LTD. 

It  is  not    surprising   that   a   bank    of  this  description   should 

find  its  deposit  accounts  somewhat   reduced,  as  its  customers 

have  no  doubt   put    large   amounts  into  the    various   forms    of 

War  Loans.     Consequently  we  find  liabilities  to  the  public  re- 

fduced  by  ;^'662,ooo  to  ;f  19,124,000.     Cash  in  hand  and  at  short 

[notice,    together  with    Treasury   bills,   are  ^140,000  down    at 

lf^>^3<^,°°o,  investments  are  ^^220,000  lower  at  /6, 627,000,  and 

[loans  /28o,ooo   at  ;f5,76o,ooo,   but  securities   repayable   within 

one  y«ar  are  ^^20,000  higher  at  p^i, 256,000 


BRISTOL    BREWERY     GEORGES    AND    CO.,    LTD. 

This  fine  old  business,  which  came  through  the  times  of 
brewery  adversity  almost  unscathed,  has  naturally  done  well 
in  the  past  year.  Nett  profits  amounted  to  /i2o,fx)o,  an  in- 
crea.se  of  ;^i8,ooo,  and  ;^io,ooo  more  was  brought  in,  so  that 
the  directors  are  able  to  raise  the  dividend  from  11  per  cent,  to 
15  per  cent.,  and  to  increase  the  carry  forward  by  ^'15,000  to 
,,^69,780.  Moreover,  while  ;,i'6,ooo  less  at  2'io,ooo  is  written  off 
for  depreciation  of  licensed  houses,  ;^'io,ooo  is  placed  to  general 
reserve,  and  .,^'5,000  to  dividend  reserve,  in  addition  to  the 
usual  ^4,000  written  off  brewery  premises.  Since  the  formation 
of  the  company,  ^^245, 780  in  all  has  been  written  off  brewery 
premises  and  ^224, 450  off  licensed  houses,  so  that  the  position 
of  the  company  is  a  particularly  strong  one  in  this  respect. 
During  the  year  the  business  of  John  Arnold  and  Sons,  Wick- 
war,  Gloucestershire,  with  about  40  licensed  houses,  has  been 
acquired,  and  should  prove  an  important  addition  to  the  trade 
of  the  company. 


COMPANY  MEETINGS. 


WEST    YORKSHIRE    BANK. 


ANNUAL  MKETLVG. 

MR.  J.   H.   HOWARTH'S  REVILW 

SHOULDER  TO  SHOULDER  THE  MOTTO. 

The  eighty-eighth  annual  general  meeting  of  the  West  York- 
shire Bank,  Ltd.,  was  held  at  the  Literary  and  Philosophical 
Society's  Rooms,  Harrison  Road,  Halifax,  on  January  30,  when 
.Mr.  J.  H.  Howarth  (the  chairman  of  director^)  presided  over  a 
nice  attendance  of  shareholders,  and  was  sapported  by  the  fol- 
lowing directors  .-—Mr.  Gamaliel  Sutciiffe,  Mr.  William  Foster, 
.Air.  Robert  Whitworth,  Mr.  Joseph  Blamires,  Mr.  Joseph 
Henry  Kaye,  and  Mr.  John  Herbert  Lacy  Baldwin. 

THE    CH&IRHAH'S    REVIEW. 

The,  Chairman,  in  moving  the  adoption  of  the  report  iuid 
balance-she«t,  particulars  from  which  had  been  published  pre- 
viously, said :  W^  meet  once  more  with  the  wtir  still  in 
progress.  Talking  about  it  is  useless.  What  is  useful  and 
necessary  is  that  everybody  should  do  their  share  of  the  work 
that  lies  immediately  to  their  hand,  and  stand  shoulder  to 
shoulder.  Until  there  are  clearer  signs  that  Germany  lias 
changed  her  view,  and  ceased  to  dream  that  her  place  in 
the  sun,  which  she  was  doing  so  well  in  sec.iring  by  peaceful 
if  underhand  methods,  can  be  captured  by  force  ^nd  robbery, 
so  long  must  we  go  on,  whatever  the  cost.  At  present  there 
are  no  such  signs,  and  the  Allied  Powers  iiave  .;aid  the  last 
word;  have  said  it  with  singular  clearness  and  unanimity,  and 
in   terms   plain  and  unmistakable. 

Deplorable  as  is  the  result  of  the  strjggle  in  blood  and  trea- 
sure to  everybody  engaged  in  it,  the  end  is  not  in  sight  until  we 
have  some  clearer  means  of  kuowing  that  Germany  thinks  the 
game  is  not  worth  the  candle. 

A    YEAR    OP    CONTROL. 

The  year  1917  will  be  remembered,  and  as  well  in  West 
Yorkshire  as  anywhere,  as  the  year 'of  control;  the  year  in 
which  Government  (having  found  it  neces-ary  in  the  national 
interest  to  step  in  to  control  firms,  companies,  and  whole  in- 
dustries, both  as  to  what  raw  materials  they  could  or  could 
not  have,  and  what  they  were  to  do  with  what  they  got)  pro- 
ceeded to  develop  and  complete  the  system.  This  development 
meant  a  vast  change — altered  conditions  in  all  directions  under 
which  trade  could  be  carried  on.  threw  traders  into  uncertainty 
and  perplexit}'  as  to  how  and  where  they  stood,  and  altogether 
brought  confusion.  As  the  centre  of  the  wool  trade  in  the  raw, 
and  of  the  woollen  and  worsted  trades  generally,  th's  area  has 
borne  the  brunt.  Control  meant  establishing  numbers  of  new 
Government  Departments,  and  extending  old  ones  beyond 
recognition. 

CONFUSION    INEVITABLE. 

Confusion  was  inevitable.  Government,  in  dealing  with  this 
immense  business,  was,  through  departmental  officials,  forced 
to  step  upon  unfamiliar  ground.  Theory  and  practice,  ideals 
and  ex[5erience,  came  into  opposition,  ft  wa.s  a  natural  tempta- 
tion to  theory  to  suppose  it  could  invent  and  impose  the  best 
methods  of  dealing  with  any  and  every  kind  of  problem,  and  it 
was  certain  (practice  would  be  sure  that  theoiry  (inexperienced) 
could  not.  Theory  had  been  thrown  into  the  field  in  a  hurry  ; 
))ractice  had  spent  its  life  and  experience  at  the  iob.  The  effect 
was  that  in  some  official  quarters  it  was  a  temptation  to  en- 
deavour to  control  by  compulsion  rather  than  by  consent,  and 
trade  was  rather  grudgingly  taken  into  counsel.  Nobody  really 
objected  to  control  or  disputed  its  necessity,  nor  its  usefulne.ss, 
Trade  felt  that  in  affecting  control  some  tension  and  friction 
•ind   great  perplexity  might  have  been  saved. 

THE  HELP  OF  THE  BANKS. 

Through  this  time  of  difUculty  the  banks  have  had  to  steer, 
.-md.  1  think  the  general  public  will  concede,  have  helped  gene- 
rously, and  their  action  greatly  relieved  the  situation.^  ''^"m' 
gether  things  have  smoothed  out,  and  come  throngh  fairly  well. 


158 


Zbc  Jnvestore*  "Review. 


Febkuarv  9,  1918. 


The  future  promises  to  work  better  lor  each  side.  Controllers 
and  controlled  have  learned  much  by  their  respective  experiences. 
The  Government  is  showings  a  gratilying  willingness  to  take 
lommerce  into  cotincil,  and  in  a  degree  a.i  never  beifore  are 
proving  anxious  to  know  what  trade  has  to  .say.  The  value  of 
this  fact  in  the  arrangements  and  schemes  which  are  under 
consideration  for  what  is  to  be  done  after  the  war  justifies  con- 
fidence in  good  results  being  secured.  The  work  of  certain 
persons  who  have  been  called  into  public  positions,  and  placed 
their  practical  experience  and  knowledge  at  the  disiposal  of  the 
country,  has  been  of  the  utmost  value,  .ind  that  must  be  un- 
hesitatingly acknowledged. 

RECONSTRUCTION  PROBLEMS. 

I'urther,  when  we  consider  what  has  been  done  in  produc- 
tion of  .all  kinds,  the  organisation  and  adaptability  required 
to  produce  it,  we  need  not  fear  our  power  10  deal  with  recon- 
struction and  such  problems  as  face  us  after  the  war.  Gene- 
rally those  problems  are  well  understood  and  foreseen,  and 
preparations  are  being  made  beforehand  for  their  solution. 

THE  HOTTO. 

Shoulder  to  shoulder  is  the  motto,  and  combination  the 
word.  Combination  in  ideals  and  methods  rather  than  indi- 
vidualism, and  combination  between  capital  and  labour  as  to 
prodnction.  Production  unrestricted,  and  for  which  labour 
will  be  adequately  paid.  Wlien  the  war  is  over  the  energies  of 
the  nation,  which  are  now  expended  in  producing  all  that  is 
required  for  the  armies,  will  be  turned  towards  peaceful  pur- 
suits, i'hen  production  will  be  an  all-important,  factor,  and 
will  form  a  question  for  agreed  settlement  between  the  rnasters 
and  the  employed. 

THE  IMPORTANCE  OF  PRODUCTION. 

The  more  this  country  can  produce  the  better,  and  the 
sooner  will  the  burden  of  debt  accumulated  by  the  war  be 
dealt  with.  What  has  been  done  through  the  stimulus  of  the 
war  forms  a  good  mstance  of  the  producing  power  of  the 
country,  and  what  can  be  done  where  employer  and  employed 
are  in  good  working  relationship.  We  expect  soon  to  have 
a  visit  from  a  Tank,  v/hich  we  hope  may  be  a  great  success. 

The  support  of  the  war  by  continuous  subscription  is  the 
b'-st  method  of  financing  it,  and  much  better  than  resorting  to 
special   loans  from  time  to   time. 

THE    STAFF   AND    THE    SERVICES. 

We  shall  to-day  wish  to  express  our  sense  of  gratitude  to  tho&e 
of  the  staff  who  have  nobly  gone  to  the  front  and  fought  for 
their  King  and  country,  and  especially  to  those  who  have 
given  their  lives  in  the  service.  Ninety-seven  members  of  the 
staff  have  joined  the  Forces.  Five  have  lost  their  lives,  26 
have  been  wounded,  three  have  been  discharged,  one  is  a 
prisoner  in  Germany,  one  has  been  awarded  the  Military  Cross, 
two  have  been  awarded  the  Military  Medal,  one  has  been  men- 
tioned in  despatches,  and  24  have  received  commissions,  in- 
cluding three  made  captain. 

A    TRIBUTE    TO    THE    WOMEN. 

Generally,  the  war  depletion  of  the  staff  has  placed  us  in  great 
difficulty.  The  work  has  been  continuous  and  stressful,  and 
has  been  carried  on  almost  at  breaking  point.  The  staff  has 
been  most  loyal,  and  the  female  portion  has  been  very  suc- 
cessful. 

1 
THE   FINANCIAL    STORT. 

Referring  to  the  balance-sheet  in  detail,  the  Chairman  said  : 
On  the  liabilities  side  the  capital  is  _£40o,ooo,  and  '.he  reserve 
tund  stood  at  7^350,000.  This  year  stands  out  as  the  first  in  a 
long  series  when  the  bank  has  not  had  to  provide  a  large  sum 
to  meet  depreciation  in  securities.  Now,  out  of  the  substan- 
tially increased  profits  of  the  year,  we  are  abie  to  set  aside  a 
sum  of  ^30,000  to  the  reserve  fund,  making  it  ^380,000.  The 
amount  due  on  current  accounts,  deposits,  &c.,  is  ^^lo, 175,000, 
or  ;£ 1, 962,000  more  than  last  year.  Acceptances  on  behalf  of 
customers  stand  at  quite  a  small  sum — ;^(),o'-)o— occasioned,  of 
course,  by  restrictions  owing  to  the  war.  On  the  assets  side, 
cash  on  hand  and  at  call  is  ;^2,i4o,(x>o,  an  increase  of  ^387,000 
on  last  year.  In  British  Government  I'reasury  bills  we  hold 
;^ 1, 600,000,  an  increase  of  ^^  1,050,000  Commercial  bills  of 
exchange,  owing  to  the  war  and  restrictions  in  trade  in  many 
directions,  are  scarcer,  being  ;f  201, 000  less  than  last  year. 

A    WISE    WORD. 

If  war  experiences  have  the  effect  of  bieaking  the  habit  in 
the  textile  trades  of  Yorkshire  of  long-dating  forward  of  in- 
voices, and  taking  three  or  four  months'  bills  on  top  of  that,  it 
would  be  an  advantage  and  lessen  trade  risks.  Even  the  best 
are  safer  to  trust  for  six  weeks  than  for  six  months.  There  is 
less  time  for  things  to  happen. 

The  amount  invested  in  W.ir  Loans  and  other  British  Govern- 
ment securities,  at  ;^i, 759,000.  and  also  in  Colonial  Govern- 
ment, English  railway  debentnres.  and  other  stocks,  at  ^330,000, 
are  about  the  same  as  last  year.  Advances  on  current  ac- 
counts, loans,  &c.,  are  ^^4, 375, 000,  an  increase  of  ;^ 782,000. 
Of  this  increase  ^435,000  is  the  amount  still  outstanding  of 
the  sum  advanced  to  customers  to  buy  the  War  Loan  of  early 
1917. 


PROFIT   AND   LOSS    ACCOUNT. 

The  activity  in  banking  business  generally,  and  the  increase 
m  values  affecting  turnovers,  have  resulted  in  a  larger  profit. 
After  providing  for  beid  and  doubtful  debts,  the  profit  amotmts 
to  £()i,70j,  as  compared  with  /75,8ci6,  With  £10,^84  brought 
forward,  the  disposable  amount  is  ;£io2,oS6.  We  paid  an 
interim  dividend  to  June  30  last  of  los.  8(1.  per  share,  absorb- 
ing ;£2i,333  6s.  8d.,  less  income-tax,  and  now  propose  a  further 
dividend  of  i6s.  per  share,  absorbing  ^32,000,  less  tax,  being 
together  at  the  rate  of  13  1-3  per  cent,  per  annum,  to  add 
^■30,000  to  reserve  fund,  and   carry  forward    to    next    account 

The  motion  was  seconded  by  Mr.  Gamaliel  Sutclifie,  who 
said  that  during  its  long  history  the  bank  had  passed  through 
periods  of  good  and  bad  trades,  but  never  had  such  a  crisis 
as  tlie  present  been  experienced,  and,  theiefore,  they  coutd 
congratulate  themselves  upon  the  balance-sheet  .submitted  to 
them.  This  wa«  not  the  time  for  self-confidence,  but  he  ven- 
tured to  sav  that  whatever  happened  the  West  Yorkshire  Bank 
would  not  be  behind  in  taking  advantage  of  the  new  slate  of 
affairs  which  -would  appear  after  the  war,  and  the  first  object 
of  the  directors  would  be  to  encourage  and  supjort  their  cu^j- 
tomers  to  the  best  adv,inta:;e. 

Sir  Frederick  Whitley  Thomson  moved  that  thanks  be  given 
to  the  directors,  whom  he  assured  of  the  sharehoWers'  heart- 
felt gratitude  for  the  splendid  services  they  had  rendered. 
They  were  proud  that  the  bank  had  made  such  a  substantial 
profit,  and  that  the  dividend  was  substantial  also.  Comment- 
ing on  trading  matters  generally,  he  said  that  English  trarfe 
with  Russia  was  much  less  than  it  ought  to  be,  and  it  was  up 
to  traders  to  see  that  when  the  Russian  markets  were  opened 
up  through  the  new  turn  of  events,  this  country  got  its,  fair 
share  of  the  enormous  trade  which  was  sure  to  corne  from  that 
country.  Traders  would  seek  the  generous  help  of  the  bank. 
He  noticed  that  a  Trade  Bank  had  been  opened,  but  personally 
he  would  prefer  to  go  to  his  own  bank  rather  than  an  institu- 
tion in  Ixindon.  It  was  only  by  extending  tne  country's  trade 
that  the  people  of  this  country  would  be  able  to  bear  the  enor- 
mous burden  of  the  war.  He  condemned  the  suggested  con- 
scription  of  wealth,  which  would  be  like  killing  th»  goose  which 
laid  the  golden  egg,  and  welcomed  the  increasing  co-opera- 
tion and  co-ordination  arising  between  capital  and  labour. 

The  Mayor  (./Uderman  Howard  Clayl,  in  seconding,  said  a 
feature  of  the  present  time.s  was  that  most  institutions  were 
being  subjected  to  somewhat  severe  criticism,  and  the  banking 
system  of  the  country  had  not  escaped.  The  charge  levelled 
against  it  was  that  in  the  past  it  had  tended  to  take  a  some- 
what narrow  view  of  its  position  in  the  community,  and  over- 
looked its  vital  connection  with  the  commerce  of  the  country  ; 
but  the  directors  of  the  West  Yorks  Bank  were  certainly  exempt 
from  that  criticism.  They  had  given  necessary  assistance  to 
traders  to  help  them  to  overcome  the  difficulties  of  Uie  time. 
In  conclusion,  he  said  it  had  been  stated  that  a  Tank  bank  was 
to  visit  Halifax,  but  no  definite  information  had  t>r-en  obtained 
vet  When  the  authorities  did  iTvake  up  their  minas,  he  hoped 
they  would  give  reasonable  notice  to  the  town,  so  that  prepara- 
tions could  be  made.  tut 

The  motion  was  carried  and  responded  to  by  Mr.  J.  H.  1-. 
Baldwin,  who  expressed  the  feeling  o-f  the  directors  that  they 
had  a  tower  of  strength  in  Mr  Howarth  at  the  bead  of  the 
bank. 

Mr  F,.  J.  Crossley  moved  the  re-election  of  the  retiring  airec 
tors.  Mr.  Gamaliel  Sutcliffe.  Mr.  William  Foster,  and  Mr, 
loseph  Blamires,  and  mentioned  that  the  first-named  had 
occupied  the  position  for  29  or  30  years.  In  emphasising  hir 
Frederick's  criticism  of  the  confiscation  of  wealth,  he  said  he 
senerally  traced  such  advocacy  to  people  of  German  origin 
or  interests,  or  to  people  who  were  unthinking  or  were  very  , 
little  Englanders.  _  9 

Mr.  J.  Bairstow  seconded  the  motion,  which  was  carried.  * 

Mr.  Blamires,  responding,  said  the  directors  worked  with  the 
feeling  that   they  were  managing  their  own  business.  _ 

The  auditors.  Messrs.  B.  and  E.  Musgrave,  of  Bradford,  were  ■ 
re-elected,  on  the  motion  of  Mr.  J.  F.  Hirst,  seconded  by  Mr.  "W 
Greenwood  Stirk.  and  thanks  were  accorded  to  the  staff,  the 
vote  being  moved  by  Mr.  Frederick  Holroyd.  and  seconded  bv 
Mr.  Robert  \\'hitworth.  Mr.  V.  W,  Wanklyn  responded,  and 
mentioned  the  interesting  fact  that  95  girls  were  employed  and 
doing  very  well. 

Mr.  R.  Maude  moved,  and  Mr.  Frank  Sykes  seconded. 
thanks  to  the  chairman,  and  the  passing  of  the  motion  con- 
cluded the  business. 


LONDON    AND    LIVERPOOL    BANK    OF 
COMMERCE. 

SUCCESSFUL   RESULTS. 

The  30th  ordinary  general  meeting  of  the  1/Ondon  and  Liver- 
pool Bank  of  Commerce,  Ltd.,  was  held  on  the  7th  instant,  «t 
the  offices.  34,  Old  Broad  Street,  Ix>ndon,  the  Lord  Ritchie  of 
Dundee,  chairman  of  the  bank,  presiding. 

The  Secretary  (Mr.  H.  Hopkins)  having  read  the  notice  con- 
vening the  meeting  and  the  report  of  the  auditors, 

The  Chairman  said  :  Gentlemen. — Those  of  you  who  may 
have  compared  the  balance-sheet  with  that  of  the  previous  year 
will  have  noticed  that  there  is  very  little  difference  between  the 


February  9,  1918. 


Zbc  Jnveetors'  "Review 


159 


L 


figures  On  the  liabilities  side  our  acceptances,  including  ad- 
vances under  the  Government  scheme,  amount  to  ^i  711,000,  or 
about  /loo.ooo  more  than  last  year,  while  on  the  other  side  we 
acrain  show  large  liquid  assets  in  the  form  of  cash,  money  at 
.all  and  short  notice,  and  British  Treasury  bills,  amounting  to 
•»  totll  of  /477,469,  against  /468,768.  Investments  which, 
with  the  exaction  of  War  Loan,  are  taken  at  or  below  the 
market  prices  ruling  on  December  3'.  are  up  by  -^36.000, 
which  is  entirely  accounted  for  by  our  increased  holding  of 
British  Government  securities.  Our  current  acceptances  are  of 
the  usual  character,  and  are  employed  exclusively  and  directly 
in  financing  the  movement  of  commodities.  There  are  no  so- 
called  financial  drafts  amongst  them.  They  are,  of  course, 
small  as  compared  to  our  acceptances  in  pre-war  days,  but  in 
view  of  what  is  going  on  all  over  the  world,  I  think  it  is  sur- 
prising that  they  are  not  even  smaller. 

TRUDERS  AND  OOVERNMENT  CONTROL. 

Consider  what  is  happening  in  this  country.  The  Govern- 
ment controls  every  article  of  importance.  They  have  either 
taken  the  trade  ovit  of  the  hands  of  the  traders  or  are  con- 
trolling it  through  them.  Their  method  of  financing  the  move- 
ment of  the  controlled  article  is  entirely  different.  Firms  that 
were  carrying  on  an  active  and  lucrative  business  before  the 
war  find  themselves  with  nothing  to  do,  or  forced  to  conduct 
their  business  by  unnatural  methods.  They  are  certainly  not 
profiteers — there  are  far  fewer  profiteers  about  than  some  of  the 
newspapers  would  lead  us  to  suppose.  On  the  contrary,  they 
have  suffered  through  State  control,  but  have  loyally  subordi- 
nated their  own  interests  to  what  is  supposed  to  be  in  the  in- 
terests of  the  country.  They  are  determined,  however,  to  free 
themselves  from  Government  interference  at  the  earliest  possible 
moment.  A  good  deal  of  alarm  was  created  recently  by  a  Bill 
which  the  Government  proposed  to  introduce  into  Parliament 
with  the  object  of  enabling  the  Government  to  maintain  control 
for  three  year.s  after  the  termination  of  the  war.  and  I  under- 
stand  that  representations  and  protests  from  traders  have  led  the 
Government  to  assure  them  that  there  is  no  desire  or  intention 
to  retain  control  for  a  day  longer  than  is  ab-solutely  necessary. 
1  think  the  country  will  take  good  care  of  that,  and  I  believe 
traders  will  quickly  recover  their  freedom. 

After  all,  the  prosperity  of  the  country  has  been  built  up  by 
the  individual  enterprise  of  the  private  citizen,  and  the  .sooner 
he  is  given  a  free  hand  again  the  sooner  will  the  prosperity  of 
the  country  revive.  Then  we  shall  see  an  immense  demand  for 
commodities  of  every  description — foodstuffs,  raw  materials, 
and  manufactured  articles — and  their  movement  will  have  to  be 
financed.  That  again  will  bring  about  a  demand  for  the  facili- 
ties which  it  is  our  main  business  to  provide,  and  there  will  be 
ample  scope  for  our  activities.  We  already  have  the  connections 
in  all  parts  of  the  world.  -We  are  fostering  those  connections 
now,  and  we  shall  be  prepared  to  offer  our  services  wherever  we 
consider  it  prudent  and  desirable  to  do  so.  Meantime,  it  is 
satisfactory  to  know  that  even  in  present  abnormal  conditions 
our  services  are  in  demand,  more  especially  of  late  in  this 
country,  and  that  we  have  also  during  the  last  year  done  a 
considerable  acceptance  business  for  account  of  the  United 
States,  where  we  have  a  large  number  of  valuable  clients. 

PROFIT    MD   LOSS    ACCOUNT. 

Turning  to  the  profit  and  loss  account;  you  will  see  that  we 
show  a  rather  better  result  than  last  year,  and  that  after  pro- 
viding for  a  distribution  at  the  rate  of  4  per  cent.,  as  before 
we  propose  to  carry  forward  .^iv358,  against  ^^14,196  brought 
in.  You  maj'  recollect  that  when  1  addres.sed  vou  last  year  I 
indicated  that  we  should  show  a  reduction  in  our  charges 
account,  and  you  will  see  that,  in  fact,  it  has  been  reduced  by 
several  thousand  pounds.  Had  it  not  been  that  we  thought 
it  prudent  to  set  aside  a  certain  sum  for  contingencies,  there 
would  have  been  a  larger  net  profit  to  dispose  of. 

Gentlemen,  before  I  move  the  adoption  of  the  report  I  should 
like  to  offer  a  word  of  welcome  to  our  colleague  Captain 
.Schuster,  who,  as  you  know,  has  been  absent  from  our  meetings 
during  the  last  two  or  three  years,  owing  to  his  military 
duties.  Captain  Bonn  also  has  been  absent,  and  is  again  absent 
to-day,  for  the  same  reason.  I  know  you  would  wish  to  join 
with  me  in  expressing  the  hope  that  both  of  them — Captain 
Schuster,  unfortunately,  has  to  return  to  the  front  in  the 
course  of  the  next  few  days — may  return  to  us  safe  and  sound 
and  for  good  at  no  distant  date.  Gentlemen,  I  now  beg  to 
move:  "That  the  directors'  report  and  accounts  to  Decern. 
ber  31,  1017,  taken  as  read,  be  received  and  adopted,  and  that, 
as  recommended  by  the  board,  a  dividend  of  5s  per  share,  less 
income-tax,  in  addition  to  the  interim  dividend  of  3s  per 
share.  less  income-tax,  already  paid  by  the  board,  be  and  the 
same  is  hereby  declared  upon  the  shares  of  the  company  for  the 
year  ended  December  31,  iqi?,  and  that  the  same  be  payable 
forthwith."  " 

Sir  Felix  .Schuster,  Bt.,  seconded  the  motion,  which  was 
unanimously  adopted. 

The  retiring  directors.  Sir  Felix  Schuster  and  Captain 
Bonn,  were  unanimously  re-elected,  and  the  auditors,  Messrs. 
Turquand.   Youngs  and  Co.,  reappointed. 

Votes  of  thanks  to  the  officers  and  staff  of  the  bank,  and 
also  to  the  chairman  for  his  most  able  statement  and  far  the 
manner  in  which  he  had  conducted  ■  the  proceedings  at  the 
•meeting,   terminated   the   proceedings. 


.     BRITISH    BURMAH    PETROLEUM. 

The  adjourned  seventh  ordinary  general  meeting  of  the 
British  Burmah  Petroleum  Co.,  Ltd.,  was  held  on  Friday  at 
the  Cannon  Street  Hotel,  E.C.,  the  Hon.  Lionel  HoUana. 
chairman  of  the  company,  presiding. 

The  secretary.  (Mr.  John  Tonsford,  F.C.l.S.)  having  read 
the  notice  convening  the  meeting  and  the  report  of  the 
auditors. 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  said  that  there  was  no  new  outstanding  feature  and 
no  material  change  in  position  or  outlook  to  call  for  special 
comment.  At  their  general  meeting  a  year  ago  he  ventured 
to  state  his  opinion  that  so  long  as  war  conditions  prevailed 
they  could  anticipate  no  great  advance  in  revenue,  while,  on 
the  other  hand,  the  increasing  cost  of  freight  and  material, 
the  increasing  difficulties  and  delays  of  shipping  transport, 
gave  cause  for  anxiety  and  inevitably  hindered  their  sales  and 
field  operations.  Under  all  the  circumstances,  therefore,  they 
had  no  reason  to  be  dissatisfied  with  the  results  of  the  year's 
working.  The  previous  year's  statement  .showed  a  trading 
profit  of  more  than  ^109,000  in  excess  of  the  profit  earned 
during  the  year  191?.  They  had  succeeded  in  maintaining  the 
position,  and,  indeed,  had  improved  upon  it  substantially  by 
a  further  ;^39,ooo  or  so.  After  meeting  all  the  sundry 
charges  in  Burmah  and  London  debenture  interest  and  deprecia- 
tion, the  balance  carried  carried  down  was  nearly  ^f  151, 000, 
which  ranked  against  some  ^^99,000  last  year,  and  the  balance 
of  divisible  profit  remaining,  after  satisfying  ths  debenture 
sinking  funds  and  after  making  considerable  allocations  to 
reserve  accounts,  was,  as  against  some  ^(^20,000  last  year, 
nearly  ;^'45,ooo,  to  which,  for  comparison,  had  to  be  added 
a  sum  approaching  ^20,000  that  they  paid  out  last  July  in  the 
way  of  an  interim  dividend  upon  their  issued  share  capital — 
an  improvement  then  of  over  ^^40.000.  This  was  satisfactory, 
as  it  enabled  them  to  recommend  a  substantial  distribution  in 
the  way  of  dividend  to  the  shareholders,  a  sum,  including  the 
interim  dividend,  of  nearly  ^60,000  being  distributed.  But,  to 
his  mind,  it  was  chiefly  satisfactory  because  it  gave  evidence 
that  the  business  had  answered  the  helm,  was  beginning  to  repay 
the  patience  and  prudence  which  they  had  exercised  during 
several  years  of  trial  and  discouragement.  It  was  fair  to 
claim  that  the  balance-sheet,  and  the  general  financial  position 
of  the  company  that  it  disclosed,  testified  to  the  improved  stand- 
ing which  had  been  gradually  reached.  The  debenture  debt 
had  been  considerably  reduced.  When  the  present  year's  allo- 
cations to  the  sinking  funds  had  been  applTed.  nearly  one- 
quarter  of  it  would  be  liquidated.  A  reserve  fund  had  been 
established,  although  as  yet  for  the  most  part  a  reserve  em- 
ployed in  the  business.  Their  cash  position  was  improving, 
and,  moreover,  this  year,  for  the  first  time,  a  heavy  contingent 
liability  that  hitherto  existed  had  been  wiped  off  their  balance- 
sheet.  In  regard  to  the  Rangoon  Oil  Co.,  their  allied  under- 
taking, when  its  accounts  for  the  year's  working  were  made  up, 
its  financial  position  on  March  31st  last  remained  much  where 
it  stood  at  the  end  of  the  previous  twelve  months.  As  com- 
pared-with  the  previous  twelvemonths,  they  had  an  increased 
outturn  of  benzine,  but  their  total  daily  throughout  of  crude 
oil  was  less  than  last  year — 1,662  barrels,  against  1,736 — sales 
being  hampered  and  reduced  by  lack  of  shipping  capacity. 
The  nett  profit  for  the  twelve  months,  after  making  all  alloca- 
tions  and  satisfying  all  standing  charges  and  other  engage- 
ments, was  ;f 44,941,  as  compared  with  ^20,541  last  year.  Out 
of  that  the  board  recommended  a  final  payment  for  dividend 
which  would  amount  to  jf39,4S'."),  making  up  the  dividend  for 
the  vear  to  7I  per  cent.,  free  of  income-tax,  and  they  would 
then  have  a  balance  to  be  carried  forward  to  the  current  year's 
account  of  ;^4o,488,  against  a  sum  of  ^■3^.498  brought  for- 
ward from  last  year.  The  dividend  would  be  payable  on 
March  1,  and  they  anticipated  that  an  interim  dividend  would 
again  be  paid  at  the  end  of  July  next  on  account  of  the  first 
six  months'  working  of  the  current  year.  It  was  impossible  to 
foresee  whether  the  profits  realised  during  the  past  twelve 
months  would  be  improved  upon,  or  even  maintained,  during  the 
current  year.  The  outlook  was  too  uncertain,  too  shadowed  with 
contingencies  that  they  could  not  control  to  justify  any  estimate. 

The  report  was  adopted,  and  the  usual  formal  business  trans- 
acted. 


In  relation  to  the  financial  straits  of  the  criminal  Kmpires,  it 
may  be  worth  while  noting  that  the  seventh  Hungarian  loan 
produced  little  more  than  one-third  of  the  amount  expected. 
That  is  to  say,  it  gave  barely  ^f  125,000,000,  as  compared  with 
;^333,ooo,ooo  odd  asked  or  prayed  for.  And  such  .subscriptions 
as  were  recorded  were  chiefly  the  result  of  coercion  applied  to 
the  banks.     The  public  took  very  little. 


Owing  to  the  restrictions  placed 
upon  paper  supplies  we  cannot 
provide  newsagents  with  copies  for 
chance  sales.  Would  regular  readers  of 
the  "  Investors'  Review,"  therefore, 
kindly  place  an  order  with  their  local 
newsagents  or  subscribe  direct  to  the 
publisher  ? 


i6o 


Zbe  Jnvestors'  "Review, 


February  9,  1918. 


INDUN  RAILWAYS. 


Nahk. 


GROSS  TRAFFIC  FOR  WEEK. 


Week 
ending 


Assam  Bengal 

Barsi 

Bengal  &N.-W.     .. 

Bengal  Nagpar 

Bombay,  baroda  .. 

Burma 

Delhi  Umballa 

East  Indian.. 

Gt. Indian  Penin.  . . 

Luoknow-Bareilly . . 

Madras      and       S. 

Mahratta  .. 
Nizam'sGd.  (Broad) 
.,        „     (Metre) 
Rohilkund  and 

Kumaon  . . 
South  Indian 


Dec. 

I 

K 

Nov, 

24 

Uoc. 

8 

Ian. 

I<) 

IJec. 

1   1 

Jan. 

26 

^^ 

2'i 

26 

Nov. 

M 

IJcc. 

8 

■- 

I 

" 

I 
8 

Amount 

'.30,307 
16,400 
3,65,620 
11,18,000 
16,14,000  I  ( 
4,34, «7i   1— 
88,8o3  1  + 
24  41,000  j  — 
25,65,700    + 
4I.5&9  j- 

10,90,003    + 

1,31, .•57  I— 

97,213    — 


[In.  or  dec. 

on  la£t 
!       vear. 

Rs.      "1 

-  3,276 

-  3,700 

-  8S,445 
4-    1,75,000  ' 
(        31,000  i 

36,6.'!   ) 

2),9»8  j 

38,000 

1,200 

3,0"8 

48,788 
2,563 
8,540 


GROSS  TKAFFIC  TO  DATE. 


49.020 

6.73,248 


11,625 
6,989 


Rs. 

1,16,150 
5,77,coo 


In.  or  dec. 
on  last 

j*ear. 

R». 

-      83,642 
1,57,000 


25,62,240  —    5,27,633 

3,68,8l,578|+  3",63,524 

2,18,52,000, —  10,34,000 

35,08,8241—    1,03,650 

'5. 31, 586+     ',96,829 

3,92,07,0001  4-  16,23,000 

3,73.67,4"  +  31,26,014 

3,12,651  4-        14,440' 


92.20,000' 4- 
10,68,380  + 
6,14,822  — 


3,55,047 
6i,99,588 


4,46,210 

53,12? 
28.496 

15,899 
3.62,.399 


+ 

April  I, 

:  Octobe 

I. 

TRAMWAY  AND  OMNIBUS.— HOME 

. 

Dublin  United       .. 

Feb.  1 

i 
7,429 

+    ',761 

32,367 

+       4,984 

Hastings  and  Dlst., 

„      4 

971 

+      206 

4,587 

+          109 

Isle  of  Thanet 

Jan.    5 

164 

—      104 

2,290 

—       1,434 

Lancashire  United.. 

,,    30 

2,546 

+      901 

10.328 

+        2,746 

Provincial    ,. 

,,    19 

2,265 

+      383 

36,795 

+        4,863 

Yorlis.  (Wst.  Rdng.) 

Feb.   3 

2,263 

+      456 

t 

11,180 

+        2,327 

From  Oct. 
TRAMWAY  AND  OMNIBUS.- 


t  From  Jan.  i. 
-FORbIGN   AND  COLONIAL. 


£ 

£ 

Ms. 

f 

£ 

Alabama  Power    .. 

Nov.  § 

ri4,f96 

+      24,747 

12 

',277,830 

+    359,725 

Anglo-Argentine    .. 

Feb.   4 

50,620 

+       3,006 

. 

260,035 

+        '3,172 

Auckland  Electric. 

Oct.  26 

22,308 

+          880 

a 

92,118 

+      7.832 

Brazilian  Traction  . 

Nov. 

M7, 695, 000' 

+  M535.000 

It 

M84,t3looo 

4-M6558000 

Brisbane  Eleo.  Inv. 

Oct. 

33,580 

+          820 

10 

328,420 

-           2,000 

British  Columbia  . . 

Dec.  § 

»I67,333 

+     »30,967 

■i 

»599,797 

+     $60,091 

B.A.  Lacroze 

,, 

40,901 

<•            795 

6 

230,476 

-           419 

Burmah  Electric  . . 

'j 

Rs.26,224 

—  Rs6,327 

— 

109,10s 

4-    Rs.1,483 

Calcutta 

Feb.    2 

Rs,7i,435 

+   Rs.4,178 

* 

RS2,77,553 

4-   Rs.7,498 

Carthagena  and 

Herrerias  . . 

Jan.      b 

4,011 

■!-            "  29 

* 

4,011 

4-               29 

Cordoba  Light 

P.  &T 

Nov. 

'3,539 

+             503 

8 

108,715 

-         2,137 

Hongkong   . . 
La  Plata       .. 

Dec.    I 

12,561 

+          $388 

* 

•647.597 

-     $38,825 

.,        ' 

4,605 

+             169 

12 

48,962 

—          '873 

Lima 

„ 

20,432 

+          3,187 

12 

195,748 

+          8,037 

Madras  Electric    ,. 

Jan.  31C 

Rs.  40,542 

+   Rs.5,231 

* 

Rs. 78,278 

+   Rs.6,474 

Manila  Electric 

Aug.  8 

65,467 

+          4,66; 

8 

547,492 

+        70,625 

Mexico 

Nov.   8 

$215,256 

—  J  108,669      ♦ 

$3,193,106 

—  $197,227 

Rangoon 

Jan.     § 

5,361 

+             728 

* 

5,35l 

+             728 

Singapore  Electric 

Dec.  15 

«I2,548 

—          8749 

♦ 

0643.405 

+     $11,654 

Toronto 

Nov.   jj 

•42^,556 

-      »8,753 

II 

$5,032,176 

+   $239,133 

United  of  Monte  V. 

Jan. 

36,016 

+          2,675 

^ 

101,101 

+          7.992 

Vera  Cruz   .. 

Oct.    § 

56,300 

9 

520,700 

Winnipeg    .. 

Nov. 

(86,888 

-     »I4,744 

II 

$748,976 

-  $327,782 

4  28  days.       •  From  Jan.  i.      S  Neit.       a  From  July  : 
FOREIGN   RAILWAYS. 


c  Two  weeks. 


Alcoyand  Gandia . . 
Antofagasta  (Chili) 
Arauco 

Argentine  N.E. 
Bilbao  R.  and  Canta 
Bolivar 
Brazil 

Brazil  Gt.  Southern 

B.  Ayres  &  Pacific 

Do.  Central     . . 

Do.  Gt.South'n 

Do.       Western 

Central  Argentine. . 

C.Ur'g'ayof  Mta  V, 
Do.  East'nEi. 
Do.North'n  Ex 
Do.West'n  Eic 

Cordoba  Central  . . 

Costa  Rica  . 

Cuban  Central 

Dorada  Extension 

Egyptian  Delta 

Entre  Rios  <. 

French  Sante  F^ 

Gt.  South,  of  Spain 

Gt.West.  of  Brazil.. 

Havana  Central    . . 

Inter. ofC.Amer... 

La  Gualra  and  Car. 

Leopoldina  .. 

Midland  Uruguay  . . 

Mogyana 

N.W.  of  Uruguay  .. 

Nitrate 

Paraguay  Central  ,. 

Paulista 

Peruvian  Corpn    . . 

Salvador 

State  of  Bahia  S.W. 

S.  Paulo  (Brazilian) 

Sorocabana.. 

Taltal 

United  of  Havana. . 

West'nof  Havana. . 

Zafra  and  Huelva. . 
*  Months,  i  From 


Jan, 

Feb. 

Dec. 

Feb. 

Oct. 

Dec. 

Nov. 

Oct. 

Feb. 

Dec. 

Feb. 


Ps 


Jan. 
Deo. 
Feb. 
Dec. 

Feb. 

Aug. 

Jan. 

Feb. 

Jan. 

Dec. 

Jan. 

Feb. 

Jan. 

Nov. 

Deo. 

Jan. 

Feb. 

Nov. 

Jan. 

Nov. 
Feb. 
Dec. 

Feb. 

Nov. 


26 


£ 

7.503 
38.650 
14.500 

9,400 

3,9" 

12.000 

.M4, 746,000 

Ml,3.53.200 

115,000 

30,817 

143,000 

64,000 

97,000 

19,083 

5.039 

3,860 

2,793 

27,000 

2,011 

33,633 

8,200 

n,S67 

18,100 

132,000 

31,457 

19.300 

9,972 

20,754 

8.250 

35,854 

10,638 

M2, 242,000 

$33,000 

38,883 

2,920 

M3, 506, 000 

31,189,350 

$2,8ib 

MSs.oOD 

35,425 

M2, 107,000 

29,108 

84,017 

11,713; 

'0,538 


£ 

— Ps.  6,oco 


820 
2,000 
3.000 
1,426 
4,193 
+  M  664,379 
+  Ml4,900 


fs. 


5,000 
8,031 
1,000 
11,000 
4,000 
5,122 

197 

850 
1,115 

70J 
3,293 
7,525 

300 

4,490 

5,300 

29,099 

Ps78,654 


4,400 
1,063 
3.470  1 

750 
9,622 
3,395 
+  M  222,440 
+  $8,388 
'+  2,854 
+  9»o 

+  M  589,750 
+  5  254,220 
$241 
—  M45,ooo 
+  12,523 
+  M  224,206 
+  13,306 
+  23,128 
+  4,490 
403 


£ 

Ps.  31,500 
182,490 
132,0*0 
253,800 

35,861 
67,132 

M  45353»oo 

M  427.477 

2,392,000 

■45.925 

3,i'2,705 

1,341,000 

2,901,200 

350,151 

147,416 

95,147 

05,612 

904,180 

69,176 

442,109 

106,900 

207,g« 

427,400 

900,336 

Ps.il7,8lS 

94,200 

237,154 

260,539 

8,250 

167,579 

94,885 

M  21669,000 

$139,682 

73,696 

87,860 

M  30654,000 

S  7,277,620 

$41,496 

Ml,02I,000 

179,608 
M  16,988 

150,436 
1,394,173 

233.054 

123,820 


£ 

■Ps.  14,570 

7.215 

4-  23,200 
+        48,998 

—  10,946 
+  22,821 
4-M523897I 

M5o,207 

301,000 

5,054 

315,549 

275,000 

482,600 

153.291 

7,893 

25,706 

6,551 

13,935 

50,592 

89,092 

7,200 

44,846 

09,400 

173,429 

—  Ps. 264905 

4-  22,150 
+        41.305 

—  38.328 

—  750 
+  58,546 
+  7,355 
+  M247,712 
+  $13,092 
+  5.444 
+  9,690 
+  Ml4'6l38 
4-S  836,998 

—  $4,574 
M66,ooo 

+  55,834 
4-M1733205 
+  38,895 
4-  291,124 
+  53,489 
3.332 


Jan.  I.  tFromJu.iyi.    «  Nett.    ii  15  days,    o  to  days. 
COLONIAL  RAILWAYS. 


Beira 

Canadian  Northern 
Canadian  Pacific  .. 
Gt.  Trk.  Main  Line 
Gt.  Trk.  Western.. 
Detroit  G.  H.&M. 
GrTkPac  Prairie  Sc 
Mashonaland 
Mid.  of  Westn.  Aus. 
New  Cape  Central.. 
Rhodesia 


Oct. 

»c 

Jan. 

31 

,, 

31 

,1 

31 

,, 

31 

,, 

3' 

,, 

31 

Sep 

Nov 

♦ 

Dec 

as 

Oct. 

•c 

£ 

$948, 

$3,335.' 

218, 

37, 

12, 

28, 


99. 


«  Months.         t  July  '. 


631 

200 
,000 
,424 
,038 

205 

741 
.670 
,206 
,169 

687 


+     9,860 

12 

+  $18,600 

4- $464,000 

—     46,202 

—        5.330 

—        2,306 

■t-        6,769 

—        9,630 

—           199 

48 

+      ",023 

I 

TTS 


£  „ 

753,845 

$24,572,100 

$10,570,000 

664.985 

'30,448 

43.613 

90,392 

47,670 

33,562 

100,157 

99,687 


c  Prom  Oct.  i. 


MONTHLY    STATEMENTS. 


NAHB 

NETT  EARMINaS  FOtt   UONTH. 

HCTT  EAKMIMOS  TO  DAT!. 

Month. 

Amount. 

In.  or  Dec. 
on  last  year 

05 

oP    Amount. 

In.ot  Dec 
on  last  year 

Dols. 

Dols. 

Dol.. 

Doll. 

Atohlson  T.  &  S.  Pi 

^ov, 

4,I00,0CO 

—1,062,000 

II 

44,286,000 

—  1,488,000 

Atlantic  Coast  Line 

Sep. 

757,000 

4-     132,000 

9 

8,260,000 

+     537.000 

Baltimore  &  Ohio  .. 

Nov. 

1,918,000 

—  1,030,000 

11 

28,797,000 

—  2,26o,00« 

Canadian  Northern 

Dec. 

65,300 

—    758.500 

b 

3.335.100 

—  2.961.000 

Canadian  Pacific   .. 

Ian. 

3,911,000 

—1,110,000 

12 

46,546,00c 

—  3,930.000 

Chesapeake  &  Ohio 

Vov. 

1,127,000 

-    iSj.ooo 

11 

12,860,000 

—  1.444,000 

Chicago  &  N.W.    .. 

Oci. 

2,747,000 

-  527,000 

10 

32,230,000 

—  3,023,000 

Chicago  Burl.  &  Q. 

,,       ' 

2,943,000 

—1,365,000 

10 

29,640,000 
3,487,000 

—  1,925,000 

Chicago  G.W. 

Nov. 

294,000 

—    159,000 

II 

—     995,000 

Chicago  Mil.  &  S.P. 

J, 

1,486,000 

-I,«47,0OO 

I' 

21,134,000 

—  7,620,000 

Chicago,  Rock  I. &P. 

1,835,000 

+      57,000 

11 

16,461,000 

—  2.514,000 

Colorado  ^Southern 

Oct. 

536,000 

—    116,000 

10 

4,873,000 

4-      603,000 

Cuba 

89,465 

—      56,433 

4 

671,275 

—       I90,I2« 

Delaware  &  Hud.  .. 

489,000 

—    246,000 

10 

5.49i,'»o 

—  1,130,000 

Denver  6t  Rio  Gran. 

Nov. 

572,000 

—     420,000 

11 

7,152,000 

—  1,539,000 

Erie 

Gr.Tr.  Main  Line.. 

^^ 

691,000 

—  856,000 

11 

10,031,000 

—  7.125,000 

/:86,2oo 

—£128,600 

11 

£1,907,300 

-  £627,900 

-  £362,400 

-  £99,900 

Grand  Trunk  Westn 

if  15.650 

—    £1,930 

11 

£33,450 

DeiroitG.H.&Mil.. 

J, 

6£6l,700 

—     fi.ioo 

II 

£67,700 

Gt.  Northern 

,, 

3.371,000 

—  696,000 

II 

21,703,000 

—  2,747,000 

Illinois  Central      .. 

^^ 

1,466.000 

—  409,000 

11 

17,538,000 

+  2,590,000 

Kansas  City  Southn. 
Lehigh  Valley 

372,000 

—       2,000 

11 

4,128,000 

+      58i,o«i 

Oct. 

921,000 

—    449,000 

10 

10,483,000 

—  1,657,000 

Louisville  &NashvU 

Nov. 

1,296,000 

—    178,000 

11 

16,949,000 

—    836,000 

Minn. S.P.  (Soo)5  .. 

496,000 

—   276,000 

11 

4,918,000 

—  2,736,coo 

Miss.  K.  &  Texas  .. 

Oct. 

926,000 

—   170.000 

10 

6,429,000 

4-  3.174,000 

Missouri  Pacific   .. 

JJ 

3,212,000 

4-1,112,000 

4 

7,735.000 

4-  2,241,000 

New  York  Cent. &H. 

5,662,000 

—      15,000 

10 

42,1IO,MO 

— 11593,000 

N.Y.  N.  Haven  &H. 

^j 

1,875,000 

—    186,000 

10 

18,128,100 

—  1,057,000 

New  York  Ont.&W. 

Nov. 

98,000 

—    27,000 

11 

2,117.000 

-       7>,0«0 

Norfolk  &  Western. 

,^ 

1,796,000 

—     15,000 

3 

l8,372.«oo  '—  3,399,000 

Northern  Pacific   .. 

j. 

1,428,000 

—2,122,000 

11 

26,009,000  1—  2,378,00a 

Pennsylvania    East 
and  West  Lines.. 

,j 

5,333,000 

—3,181,000 

It 

86,440,000 

— 16400,000 

Phil,  and  Reading  .. 

,, 

1,064,212 

-1,199,202 

'I 

11,876,712 

—  6,626,325 

Reading 

,, 

577,033 

4-        5,826 

II 

9,806,000 

4-      213,860 

St.  Louis  &  San  F. . 

Oct. 

1,875,000 

4-     133,000 

4 

7,264,000 

4-  1,447.000 

Seaboard  Air  Line.. 

,, 

7j4,ooo 

+       61.000 

10 

6,118,000 

+      304,000 

Southern      .. 

Nov. 

2,471,000 

+     109,000 

5 

11,795,000 

4-  l,»57.B»0 

Southern  Pacific   . . 

,, 

5,190,000 

—    258,000 

11 

56,301,000 

4-  8,036,o«» 

Union  Pacific 

,, 

3,901,000 

-     668,000 

11 

39,694,000 

—  3,3l2,aao 

Wabash 

■' 

1,029,000 

-     235,000 

11 

1  11,298,000 

—     421, o«o 

S  Includes  Wisconsin  Central.    ■•  Gross  earnings.    <  Surplus,    i  Deficit. 


The  Australian  Customs  levenue  for  the  seven  months  elapsed 
of  the  fiscal  year   1917-18  shows  a  ialling  off  of   / 1,589,000  at 

f  7,904,761.  The  Post  Office  revenue  is  /i6o,oSi  up  at 
2,761,000,  but  the  liability  on  war  pensions  continues  to  grow, 
the  number  of  pensioners  having  increased  now  to  02.764.  in- 
volving an  annual  charge  of  ;f  2,761 ,000. 


FINANCIAL  ADVICE. 


You  can  always  obtain  gratis  the 
best  advice  regarding  your  stocks 
and  shares  through  the  medium  of 
the  Answers   to  Correspondents 


column 


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13.927 

$108,000 

$412,000 

113,407 

6,707 

1,946 

22,608 

9,630 

:,io8 
15,343 
11,023 


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in  its  columns  or  not. 


72,  COLEMAN  STREET,  LONDON,  E.G. 


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Printed  bv  the  St.  CLEMiNrs  Press,  Ltd.,  Portugal  Street,  Kingsway,  London,  W.C,  for  the  Proprietor  of  Th«  IxviSTOits'  Review,  and  Publish*! 
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XTbe 


Jn\>e6tot6'  IReview 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


Vol.XLI.— No.  1.050,] 

NEW  SERIES. 


rE«i[tatered  as  al 
L'  newspaper.    J 


SATURDAY,  FEB.  i6,  1918. 


[Price  6d. 


CONTENTS. 


Passing  Events: — National  War  Bond  Sales  —  Revenue  — 
Government's  Work  in  1917  —  Prussia  and  Bivaria  — 
Lord  I.everhulme  on  the  Conscription  of  Wealth  — 
RaiUays:    Great    Western    —    North-Eastern   —   Midland 

—  Caledonian  —  London  and  Soutli-AVestern  —  North 
British  —    South-Eastern    and    Chatham  —   British  Wagon 

—  Imperial  Tobacco  —  British  Dyes  —  Increased 
Statutory  Percenlajies  — •  City  of  London  Brewery  — 
Wm.  France,  Fenwick  —  Port  Talbot  Railway  and    Docks 

—  John  Knight  —  Gaika  Gold  Mining  —  Lancashire 
Cotton  (pp.   163'8),    Board  of  Trade  Returns  (p.  175). 


—  Boot  and 
-  By-the-Way 
the   War  (pp. 


ey  and  Credit  Notes  : — Money  Artificially  Cheap  —  Bank 
Return  — •  Treasury  Bill  Rates  Reduced  —  Foreign 
Exchange  Movements  —  Morocco  Loan  in  France  — 
Silver  —  Austro-Hungarian  Bank  Return  (pp.  172-4). 


Leading    Articles: — "  Rhonddaism    in    Excelsis  " 

J  Leather  Manufacturing  Companies'  Profits 
War  Notes  —  The  Course  of  Prices  After 
168-70  and  pp.  178-9). 


Books  Received  (p.  170). 

The  Week's  Stock  Markets  (pp.  174-5). 

London  Produce  Markets  (pp.  175-6). 

Company  Results  in  Brief  (p.  176). 

Public  Income  and  Expenditure  (p.   177). 


American  Business  Notes  : — United  States  and  Food  Shortage 
in  Europe—  Swift  and  Co.'s  Profits  (pp.  177-8). 

Insurance  News  : — Scottish  Life  —  Fire  Losses  in  the  United 
Kingdom  —  New  British  Insurance  Corporation  —  Indemnity 
Mutual's  Profit-Sharing  Scheme  (p.  178  . 

Mining  News : — Transvaal  Gold  Production  —  Native  Labour 
Returns  —  Wankie  Colliery  —  Shamva  —  Mysore  — 
Broken  Hill  Proprietary  —  South  African  Gold  Trust  — 
Kinta  Tin  (p.  180). 

Tea,  Oil,  and  Rubber  :— Rubber  Market  (p.  181). 

What  Balance  Sheets  Tell :— English  Velvet  and  Cord  Dyers' 
Association  —  Cerebos  —  Bradbury,  Greatorex  and  Co,  — 
Pawsons  and  Leafs —  Holzapfels  (pp.   181-2). 

Company  Meetings  : — Waring  and  Gillow  —  South  Metropolitan 
.    Gas —  Home  and  Colonial  Stores  (pp.  182-3). 

Dividends  Announced  (p.  179). 

The  Week  in    Mines  (pp.  179-80). 

Answers  to  Coi respondents  (p.  180). 

Mining  Returns  for  January  (p.  181). 

Traffic  Returns  (p.  184). 


CRiatlLJiA. 


THE    BANK   OF 
BRITISH    NORTH    AMERICA. 


Established  1836. 


INCORPORATED  by  ROYAL  CHARTER  1840 


PAID-UP  CAPITAL     ..  (fi.ooo.ooo.  RESERVE  FUND     ..£620,000. 

Head  Office:— 5,  GRACECHURCH  STREET,  LONDON,  E.C.  3. 
Court  of  Directors. 
Lt.-Col.F.R.  S.BALFOUR.  Lieut.  E.  GEOFFREY  Hon.  A.  R.  MILLS,  M.P. 
].  H.  BRODIE.  HOARE.R.N.V.R.     MajorC.  W.TOMKINSON 

J.H.MAYNECAMPBELL.    F.LUBBOCK.  G.D.WHATMAN. 

E.  A.  HOARE. 

Deposits  received  at  rates  which  may  be  obtained  on  application. 


Bills    of    Exchange    negotiated. 
Dividends    and    Coupons    collected- 
Purchase    of    Stocks    and    Shares. 

ALL     KINDS     OF      BANKING      BUSINESS    TRANSACTED. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  0/   the   Imperial 
Japanese  Government,  1899. 


HEAD  OFFICE 


-     TAIPEH,   FORMOSA. 


BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samararg, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58.  OLD  BROAD  ST..  E.C.  2. 


THE  TRUSTEES  CORPORATION 

(LIMITED). 


CAPITAL 


£1,050,000. 


The  first  Corporation  founded  in  the  United 
Kingdom  to  act  as  Executor  and  Trustee  of  Wills 
and  Settlements. 

Trustees  for  Debenture  Issues. 

Agents  for  Foreign,  Colonial  and  Municipal  Loans. 

Bonds   tfranted    to    Receivers    and 
Administrators. 

Leasehold  and  Sinlciiig  Fund  Policies  issued. 

Safe  Deposit  and  Halls  for  Meetings  at 
Winchester  House. 

Pamphlet  sent  on  application  to  the  Secretary  at  the  Head  Office. 

WINCHESTER    HOUSE,  OLD  BROAD  ST.,  LONDON,  E.C. 2. 

Liverpool  Branch  and  Safe  Deposit :  2,  Exchange  Street  East. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  1880. 

Authorised  and  Issued  Capital,  £6,000,000. 

Paid-up  Capital,  £2,000,000;  Reserve  Fund,  £a,oco,ooo;  togethei    £4,000,000 

Reserve  Iiiability  of  Proprietors , 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OPFICE   -        -         -        71,  CORNHILL,  LONDON,    E.G.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Austraitati 
States  and  Dominion  of  New  Zealand. 

TELEGRAPHIC  REMIITANCES  are  also  ma^e. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPO.^I TS  are  received  for  fixed  periods  on  terms  which  may  be  aBCertained 
oa  application. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital  £4,000.000 

Paid-up  Capital  ^■■■-      1,800,000 

Reserve  Fund    2,000,000 

BRANCHES- 
ARGENTINE.  —  Buenos    Aires,    Rosario,    Mendoza,    Concordia,    Bahia 
Blanca,  Cordoba.  Tucuman,   Parana,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires),  Boca  (Buenos  Aires),  Calle  Santa  F^  (Buenos  Aires), 
Calle    B    de    Irigoyen    (Buenos    Aires).      URUGUAY.— Montevideo, 
Montevideo   Agency   (Calle    Rio    Negro),    Paysandu    (Agency),    Salto 
(Agency).        BRAZIL. —Rio   de    Janeiro,    Sao    Paulo,    Santos,    Per- 
narobuco.  Para,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).    CHILI — 
Valparaiso,  Santiago.      FRANCE— Paris  (16  Rue  Haldvy).     Agency  in 
New   Yorlt  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 
advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


UNION      BANK     OF     CANADA. 


Incorporated  1865. 


Head  Office:  WINNIPEG. 


PAID-UP  CAPITAL «g,ooo,ooo 

REST   AND    UNDIVIDED    PROFITS S3.<>oo,ooo 

TOTAL   ASSETS    EXCEED         $143,000,000 

The  Banli  has  over  300  Branches  in  Canada,  and  Agents  in  tl:e  principal 

cities  in  America,       General  Banking  Business  Conducted. 

Depottltfi  Received  for  fixed  periods  at  favourable  rates,  which  may  b< 

ascertained  on  application  to 

London  0(fls«s  :  6,  PRINCES  STREET.  E.C  2  and  211,  MYMXRHKT,  S.W.  1 


N«w  Yorli  Agency :  49,  Wall  StfMt 


1 62 


Zbe  Jnvestors'  IRevfew. 


February  i6,   1918. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office  1  15,  Gracechurcli  Street,  London,  E.C.  3. 


Capital  Authorised 
Capital  Issued 
Capital  Paid  Up  ... 
Reserve  Fund 


£1^00,000 

1,125,000 

562,500 

600,000 


Branches  t 

INDIA.  BURMAH.   CEYLON.    STRAITS    SETTLEMENTS 

CHINA.    AND    PORT    LOUIS.    MAURITIUS. 

The  Bank  buys  and  sells  Bills  of  Exchani^e,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  East,  on  terms  to  be  bad  on  application. 

DKP08ITS  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  otiprant  aocounta  interest  is  allowed  at  3  percent,  per  annum  on 

daily  balances. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    laSO. 

Bubaoribed  Capital        Yen  48,000,000 

Capital  Paid  Up Yen  36,000,000 

Reserve  Fund         ..        ..  ..    Yen  22,100,000 

Head  Office :   YOKOHAMA. 
Branches  and  Agencies  at 
Bombay.  Honolulu.  New  York.  Singapore. 

Calcutta.  Hong  Kong.  Osaka.  Sydney. 

Changchun.  Kobe.  Peking.  Tientsin. 

Dairen  (Dalny).  Los  Angeles.  Rangoon.  Tokyo. 

Fengtien  (Mukden).       Lyons.  San  Francisco.  Tsinanfu. 

Hankow.  Nagasaki.  Seattle.  Tsingtau. 

Harbin.  Newchang.  Shanghai. 

The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  transacts  General  Banking  Business. 
Peposits  received  for  fixed  periods  at  rates  to  be  obtained  on  apf)licaticn. 
London  Office:  7,  BISHOPSGATE,  E.C. a. 

K.  TATSIJMI,  Manager. 


INSURANCE. 


FARROW'S  BANK 

Incorporated  under  the  Joint  Stock  Companies  Acts.  LIMiTED 

Authoriaed   Capital,  £1.000,000.  Sharei  Istiud.  700.000. 

Shareholders,  4,000. 

Chairman     -       .       -       .  Mr.  Thomas  Farrow. 


EVERY   DESCRIPTION    OF   JOINT 
STOCK  BANKING  TRANSACTED. 

CURRENT    ACCOUNTS    opened     and    interest    paid    where 

approv.'d  Credit  Balances  are  maintained. 
DEPOSIT    ACCOUNTS.    Interest  paid  according  to  notice  of 

withdrawal. 

Write   or  call  for  Special  Booklet  to 

HEAD    OFFICE: 

1,  CHEAPSIDE,  LONDON,  E.G. 2. 

7J  Branches  throughout  the  United  Kingdom.  *  «  At 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 


Hud  Offic**^i  Old  Bioad  Street,  E.C. 


«1, 278.747  10 
669,688  O 
375,680  11 
606,962  10 


Subscribed  Capital  

Paid  up  Capital 

Reserve  Fund  and  Undivided  Promts 

Reserve  Liability  of  Proprietors 
REMITTANCES  made  by  CABLE. 
DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 

Branches  and  Agents. 
BILLS  on  Ausirala.sia  NEGOTIATED  or  sent  for  collection, 
D3FOSITS  RECEIVED  for  periods  and  at  rates  which  may  be  aaeertained 

on  application,  and    Banking    Business    of    every  deaorlption   oonduoted 

with  .\a8tTalia. 


THE     WESTERN     AUSTRALIAN     BANK. 

Established  1S41. 
Pald-ap  Capital    ..    £380,000   0    0     is.ooo  Shares  of  £10  each. 
Beurie  Fund  . .     . .  £700,000    0    0  |  Reaerva  Proflti    . .  £16,080 

BMcrvsa  lilabllltr  of  Shareholders  £200,000. 

Uxafta  Itsued.  Kemittamces  cabled,  Bills  negotiated  or  collected.     Deposits 

recaivad  tor  fixed  piinuds  at  rates  10  oe  ascertained   on  application,  and  all 

bwikiag  and  ezcliange  busaness  connected  with  Western  Australia  conducted 

ttwoo^b  tiK  London  ARents,  Tb*  B«n1i  of  «d«lKld«,  11.  l,e«d«ali»ll  St.,  K.O.i. 


DON'T    CASH   YOUR 
VICTORY  LOAN  DIVIDEND. 

£2  10s.  Dividend  will  double  your 
holding  of  War  Stock  and  produce 
£100  new  money  for  the  War. 

Write  for  particulars  to  Prudential 
Assurance  Co..  Ltd,  142,  Holbom 
Bars,  E.C.I,  or  to  any  of  its  Agents. 

ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head  Office:  BARTHOLOMEW  LANE.  LONDON,  E.C.  2. 


ASSETS    EXCEED    £24,000,000. 


Chairman  i 
The    Hon.    N.    CHARLES    ROTHSCHILD. 


The  operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  infopmation  respecting 

ESTATE    DUTY   *i«o 

CHILDREN'S   EDUCATIONAL  POLICIES 

issued  by  the  Company  may  ^ 

be  obtained  on  application 
to  the  Head  Office  as  above, 
OP  to  any  of  the  Offices  op 
Agencies    of    the    Company. 

O.  MORGAN  OWEN,  General  Manager. 

NOTICE. 

CITY  OF  TOKYO  5  PER  CENT.  LOAN  OF  1912. 
STERLING  ISSUES. 


NOTICE  IS  HEREBY  GIVEN  that  the  Coupons  due  1st 
March,  1918,  will  be  paid  on  and  after  that  date  (Saturdays 
excepted)  between  the  hours  of  11  and  3,  by  the  Yokohama 
Specie  Bank,  Limited,  where  lists  may  be  obtained. 

Coupons  must  be  left  three  clear  days  for  examination  prior  to 
their  payment. 

The  Yokohama  Specie  Bank,  Limited, 

K.  TATSUMI,  Manager. 
7,  Bishopsgate,  E.G.  2,  14th  February,  1918. 

^be  3nvegtorg'  TRevicw. 
SCALE  OF  CHARGESTOR  ADVERTISEMENTS. 


PROSPECTUSES. 

Full  Page  ...  ...  ...     *25      O 

Under  one  page,  at  per  inch,  1      S 

single  column 
Special  positions  by  arrangement. 
REPORTS    OF    COMPANY    MEETINGS. 
Minimum     ...  ...  •••        fi4-      O 

Per  Column...  ...  ...  6    11 

COMPANIES'     BALANCE>SHEETS. 
Whole  Page  ...  ...    *1B    15 

Half  Page 8       9 

Quarter  Page  ...  ...  4       2 

DIVIDEND    NOTICES,    &C. 
Per  Inch     ...  ...      jBO   1 2    6 

BANKS    AND    INSURANCE    COMPANIES. 
Front  Page  (cover)  facing  Money 

Article  or  special  position,  per  inchfiO  16    O 
Ordinary  position,  per  inch      ...  O    1  2    6 

Discount  for  Series. — 5%  for  Thirteen,  10%  for  Twenty-six, 
15%  for  Thirty-nine,  and  20%  for  Fifty-two. 

"INVESTORS'  REVIEW,"   Nosfolk  Housk,  NoiiroLK  Striet,  Strand, 
London,  W.C, 


o 
o 


o 

6 

o 

6 

6 


I 


I 


tCbe  ^nveetors'  IRevfew, 


Vol.  XLI.— No.  1,050. 

law  BtrlM. 


SATURDAY,  FEB.  16,  1918. 


("•&rp.V.')  Price  6cl. 


PUBLISHER'S    NOTICES. 

Ibe  investors'  IReVieW  is  a  subscription  Joumal.andwill 
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the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning, 
on  the  following  terms  :— 

One  Year,  £1  Ss.  Od.    Six  Months,  12s.  6d.    Three  Months,  68.  6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year,  jEI  8s.  Od.     Six  Months,  14s.  Od.    Three  Months,  7s.  Od. 

Short  of  Three  months  thf   Price  is  6Jd.  per  Copy  Inland,  and 

7d.  Abroad,  Post  Free. 

Cloth  cases  for  binding  the  Half  Yearly  Volumes  price  1«.  8cl., 

postage  4cl.  extra.    Bound  Volumes  16a.  6d.,  or  16a.  3d.  post  free. 

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"Investors'  Review," 

Norfolk  House,  Norfolk  street, 
London,  W.C. 


Telephone  No. : 
Gerrard  9132. 


Telegraphic  Address : 
"Unveiling,  London." 


The  Baltor  caaaot  uaaertake  to  return  rejected  com- 
muaications. 

Letters  trom  correspondents  must,  in  every  case,  be 
authenticated  by  the  name  and  address  of  the  writer. 

The  Editor  desires  It  to  be  understood  that  a  charge  Is 
made  tor  the  Insertion  of  reports  under  the  beading  of 
Company  Meetings,  and  they  cannot  accept  responsibility 
for  statements  made  therein. 


ANSWERS    TO   QUERIES. 

One  Reply   to    One   Question  —  One    Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  kept,  as  securities  cannot  be  named  with  comments  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issue 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  iu  advance,  a 
Key  to  the  previous  week's  replies  will  be  sent  early  in  the 
following  week. 

Deposits  of  ' '  Query  Money  ' '  may  be  made  in  advance,  and  will 
be  acknowledged  in  the  "Answers"  column.  Notice  of 
exhaustion  will  also  be  given  there. 

Telegpame  advising  about  new  securities  cost  Half-a> 
GiK>wn  each,  plus  cost  of  the  telegram. 

Private  Letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
Shillings,  but  for  this  three  questions  will  be  answered  if 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Haif-a-Crown  per  question. 

Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  on  terms  varying  according  to  the  time 
taken, 

Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


Passing   Events. 


A  welcome  increase  was  shown  in  the  money  brought 
in  b}'  the  sale  of  National  War  Bonds  in  the  weeks 
ended  February  2  and  9.  The  Bank  of  England  state- 
ment regarding  its  issue,  which  covers  the  week  ended 
the  gth  inst.,  was  an  increase  of  ;^4, 136,000  over  the 
previous  week's  receipts  at  ;£23,634,ooo.  This  was 
provided  by  19,398  subscribers,  and  brings  the  aggre- 
gates up  to  324,441  subscribers,  and  ^"351,892,000. 
From  the  Post  Office  the  money  received  in  the  week 
ended  February  2  was  only  /,"i,oi5,ooo.  This  was  fur- 
nished by  36,000  subscribers,  which  was  4,200  less  than 
during  the  preceding  week,  the  decrease  in  the  money 
received  being  ^'34,000.  Up  to  the  date  given  680,600 
applications  in  all  have  been  made  through  the  Post 
Office  for  a  total  of  ;^i6,692,ooo.  Of  War  Savings 
certificates  2,336,194  were  sold  in  the  same  week  ended 
February  2,  raising  the  total  sales  to  148,988,957.  That 
is  to  say.  War  Savings  certificates  have  up  to  the  said 
date  provided  ;^i  15,466,446  in  cash  to  the  Treasury, 
and  these  various  forms  of  Ixjrrowing  added  together 
have  furnished  the  Government  with  ;^484,o5o,ooo  to- 
wards meeting  the  expenses  of  the  war.  It  is  far  short 
of  enough,  but  we  are  thankful  that  it  amounts  to  so 
much. 


War  expenses  were  not  so  heavy  last  week;  in  fact, 
the  outgoings  on  special  services  were  only 
;^36, 290,000 — alas  for  the  only— or  slightly  more  than 
;^5, 184,000  a  day.  Interest  on  war  debt,  however,  ab- 
sorbed ;^5,62g,388,  and  miscellaneous  outgoings  re- 
quired ;^io,38o,  so  that  altogether  the  week's  current 
expenditure  was  ;^4i,929,568,  or  within  a  few  thou- 
sands of  ;^6,ooo,ooo  a  day.  As  usual  now,  however, 
this  expenditure  was  but  a  small  part  of  the  week's 
overturn,  which  was  ^152,529,000.  Of  that  no  more 
than  ;^28, 618,000  was  provided  from  revenue.  We  say 
"no  more  than,"  but  as  a  matter  of  fact,  the  week's 
receipts  from  taxation  and  monopolies,  although  only 
;^'3.95''20o  short  of  the  actual  expenditure,  were  mag- 
nificent. But  most  of  it  came  from  direct  taxes,  as 
usual,  the  week's  proceeds  of  the  property  and  income- 
tax,  including  super-tax,  having  been  ^^20, 207,000. 
Excess  profits  gave  us  ;^4, 172,000,  but  there  should 
now  be  an  increase  from  this  source  unless  the  inten- 
tions  of  the   Government   in  framing  the   impost   are 


being  circumvented,  which  is  quite  probable.  Up  to 
date,  however,  the  excess  profits  duty,  including  the 
munitions  levy,  has  produced'  ;^  177, 562, 000,  against 
;^i49,376,ooo,  the  product  of  the  income-tax  and  super- 
tax. The  entire  receipts  of  the  Exchequer  this  fiscal 
year  up  to  the  end  of  la.st  weiek  have  foeen;£,"534, 854,000, 
and  of  that  aggregate  the  income-tax,  munitions  levy, 
and  excess  profits  tax  have  together  produced 
;^326, 938,000,  so  that  all  the  other  sources  of  revenue 
have  been  good  for  rather  less  than  ;^2o8,ooo,ooo.  In 
the  past  week,  too,  out  of  a  total  of  ;^28,6i8,ooo  paid 
into  the  Exchequer,  ;^24, 379,000  came  from  these  same 
direct  taxes.  Surely  this  should  warn  the  Government 
that  there  must  be  some  broadening  out  of  the  basis 
of  taxation,  and  the  puzzle  will  be  in  what  direction 
that  can  be  contrived.  It  will  not  do  to  attempt  to  get 
more  money  by  screwing  up  or  "broadening"  the 
Customs  tariff.  We  shall  have  to  create  other  direct 
taxes,  and  in  re-arranging  these  direct  taxes  there  must 
certainly  be  some  readjustment,  and  a  considerable  in- 
crease in  the  burdens  borne  directly  by  land.  There  is 
surely  an  obvious  scandal  behind  the  fact  that  our 
farmers  should  be  exempt  from  paying  income-tax  on  a 
footing  level  with  the  scale  imposed  upon  their  fellow- 
countrymen,  and  that  the  power  of  the  masses  of  the 
people  in  towns  to  pay  taxes  of  any  kind  should  be  per- 
manently weakened  by  the  absence  of  any  direct  levy  on 
the  revenues  of  leaseowners  in  relief  of  local  rates,  and 
in  augmentation  of  the  receipts  of  the  Impenial  Ex- 
chequer. 


Analysing  the  items  appearing  on  the  two  sides  of 
the  weekly  Treasury  statement,  we  find  that  the 
Government  repaid  ;^6o, 723,000  of  Treasury  bills  due, 
including  the  bills  tendered  as  subscriptions  to  National 
War  Bonds,  while  only  ;^53, 653,000  of  new  supply 
Treasury  bills  were  emitted.  It  also  paid  off 
^36,553,000  of  "  other  "  war  debt  and  ;^i2,ooo,ooo  of 
temporary  advances,  and  at  the  same  time  devoted 
;^i,ooo,ooo  to  the  support  of  the  market  for  war  .stocks, 
as  shown  under  the  heading  "  depreciation."  The 
.'imount,  however,  received  from  the  mysterious 
"other"  war  debt  sources  was  ;^39,732,oco,  and 
_£'2 1,679,000  came  in  from  the  sale  of  National  War 
Bonds.  War  Savings  certificates  gave  ;^2, 200,000,  and 
;^i,  169,000  was  furnished  by  the  4  and  5  per  cent. 
War  Loans.     By  re-borrowing  half  the  amount  of  tern- 


164 


vTbe  Jnvestors'  "Review. 


Febrlarv  16,  1918. 


porary  advances  paid  off,  the  Government  was  able  to 
balance  its  week's  issues  and  receipts  with  ;6595i2io 
left  over.  This  was  added  to  iJie  lixchequer  balances, 
raising  them  to  ;C^5>79^y5i^- 


Subjoined,  extracted  from  the  Times,  is  Mr.  Bonar 
Law's  eaumeratJoi)  of  the  work  accomplished  under 
the  present  (jovernnicnt  in  1917.  It  is  a  record 
honourable  to  the  Ministers  concerned  .and  promising 
lor  the -future,  but  no  wonder  the  men  who  superin- 
tend the  work  are  tired  :— 

Man-Power.— In  lyi;  we  put  into  the  Army  820,645  a^^'- 
tional  men.  We  placed  in  civil  employment  at  home  731,000 
men  and  804,000  women. 

Food  Production. — I-ast  year  1,000,000  additional  acres  were 
brought  under  the  plough.  The  additional  amount  of  cereals 
produced  was  850,000  tons,  and  of  potatoes  3,o(k),ooo  tons. 
Already  this  year  a  further  800,000  acres  had  been  brought 
under  the  plough  in  lOngland,  and  400,000  in  Scotland  and 
Wales. 

Wheat  Stocks. — There  were  2,000,000  more  quarters  of  wheat 
in  this  country  at  the  end  of  last  year  than  at  the  end  of 
December,   1916. 

Shipbuilding.— In  i()i6  the  total  quantity  built  was  539,000 
tons.  In  1917  the  tonnage  built  in  this  country  was  1,163,474 
tons,  and  we  secured  abroad   170,000  tons  in  addition. 

better  Use  of  Ships.— Notwith.standing  the  loan  of  1,500,000 
gross  tons  to  the  Allies  we  imported  precisely  the  sjme  amount 
from  September  to  November  last  year  as  from  February  to 
April.  Whereas  before  the  war  every  100  ton's  net  shipping 
brought  to  this  country  io6  tons  of  goods,  the  average  was  now 
150  tons. 

Timber. — We  succeeded  last  year  in  reducing  the  imports  of 
timber  by  3,000,000  tons.  That  has  been  made  good  by  an  in- 
crease of  1,800,000  tons  at  home,  and  the  balance  has  been 
made  good  by  our  work  in   France. 

Munitions. — The  number  of  guns  available  in  Fraace  in- 
creased, last  year  by  30  per  cent.  The  supply  of  aeroplanes  in 
1917  was  two  and  a-half  times  as  great  as  in   1916. 


The  rift,  always  there,  though  hidden,  appears  to  be 
widening  between  I^russia  and  Bavaria.  It  may  be — 
.some  hope  that  it  will  be — the  signal  of  a  rending 
asunder  of  the  German  Empire,  the  Catholic  kingdom 
of  Bavaria,  with  other  South  German  communities,  in- 
cluding Wurtemberg  and  Baden,  falling  back  upon 
Catholic  Austria  to  form  a  new  federation  against  the 
arrogant  and  domineering  Prussian.  We  neither  know 
nor  care  much  about  that  domestic  affair,  but  it  is 
interesting  to  note  what  Count  von  Preysing,  the  suc- 
cessor of  Count  von  Hertling  in  the  Bavarian  Premier- 
.ship,  told  the  Diet  last  week  about  the  German  debt. 
Up  to  the  present,  he  said,  Germany's  war  costs  have 
been  ;<f6, 500, 000,000,  the  yearly  diarge  imposed  by 
which  is. about  ;^4oo,ooo,ooo.  "  If  no  war  indemnity," 
he  vwnt  on,  "  proves  to  be  obtainable,  the  confiscation 
of  wealth  up  to  ;^2, 000,000,000  to  ^2,500,000,000 
will  be  unavoidable,"  and  he  warned  Bavaria  that  under 
the  terrific  load  now  hanging  over  the  country, 
Bavaria  would  cease  to  be  any  longer  independent.  It 
is  somewiha't  late  in  the  day  to  begin  to  discover  truths 
like  the.se,  but  statements  of  thi.s  kind  remind  us  how 
eagerly  the  Germans  must  hunger  after  those  dreamt-of 
indemnities,  to  exact  which  was  no  small  part  of  the 
miotives  that  made  them  begin  the  war.  Already,  on 
the  mere  sitrengtth  of  the  "  .peace  "  with  Ukrainia,  they 
are  cfemourmg  for  annexations  and  indemnities,  jus.t 
in  the  old  way,  being  ignorant  of  the  devastation  the 
war  has  caused.  And  witihin  the  Empire  itself  they 
cannot  understand  that  their  prolongation  of  the  fight 
more  and  more  renders  it  impossible  for  them,  even 
suppo-sing  they  were  victoiious  in  conformity  with 
their  evil  imaginations,  to  exact  anv  indemnity  from 
the  beaten  foe.  Are  they  going  to  get  an  indemnity 
irom  Ukratnia,  from  any  part  of  Russia?     No. 

Lord  Leverhulnie  delivered  a  long  and  interesting 
address  at  the  Royal  Society  of  Arts  on  Wednesday  on 
the  subject  of  the  conscription  of  wealth  and  the  rela- 
tions of  capitaUst  and  labourer.  We  should  have  liked, 
had  space  permitted,  to  say  something  about  various 
points  ransed  by  him.  He  has  got  a  strong  grip  of  the 
trath  about  our  industrial  position,  the  duties  of  citi- 
zens, the  relations  of  capital  to  labour,  and  so  forth, 
and  IS  obviously  anxious  to  work  for  the  improvement 
of  his   fellow  men.      He  also  says  some  wise   things 


about  the  conscription  of  capital,  and  illustrates  the 
impossibility  of  carrying  out  any  such  wealth-stripping 
as  some  people  talk  about.  But  the  main  purpose  of 
the  address  seems  to  have  been  to  grope  after  the  best 
mode  of  improving  the  relationship  between  what  he 
calls  the  employer  capitalist  and  the  employee  worker, 
or  of  reconciling  their  apparently  conflicting  interests. 
He  finds  it,  we  judge,  in  co-partnership  of  a  certain 
limited  kind,  which  he  prefers  to  "  profit-sharing." 
The  suggestion  is  well  worth  discussion,  although 
labour  and  capital  may  come  to  adjustments  of  claims 
by  more  than  one  channel.  For  example,  there  may  be 
such  a  thing  as  organisations  of  workmen  acting  as 
their  own  capitalists,  as  M.  Yves  Guyot  has  been  sug- 
gesting, unions  of  workmen  capable  of  entering  into 
contracts  with  capitalists  for  the  execution  of  definite 
undertakings.  We  cannot  say  more  now,  but  will 
doubtless  have  to  return  to  the  subject. 


It  is  at  least  open  to  question  whether  this  is  a 
favourable  opportunity  to  start  an  agitation  for  a  less 
conservative  policy  on  the  part  of  railway  boards  and 
a  more  generous  distribution  of  profits.  Scotch  rail- 
ways, it  is  true,  have  squeezed  out  an  additional  frac- 
tion, but  all  the  big  Engli.sh  companies  have  been  con- 
tent to  leave  their  dividends  at  last  year's  figure.  The 
Great  Western  has  been  particularly  signalled  out  for 
attack,  and  on  a  short-sighted  view  of  the  results  there 
may  be  some  justification  for  it.  Gross  receipts  last 
year  were  p£^i8, 810,000,  an  increase  of  ;^i, 442,000,  and 
expenses  were  ;^i,387,ooo  higher  at  ;^i3, 210,000. 
Consequently,  the  nett  income  advanced  ;^55,ooo  to 
;^5, 600,000.  Moreover,  miscellaneous  receipts  were 
up  ^120,000,  and  the  amount  brought  in  was  ;^58,ooo 
larger,  with  the  result  that  the  total  amount  available 
shows  an  increa.se  of  ;^233,oc>o  at  ;^6, 266,000.  The 
appropriation  to  reserve  is  doubled  at  ;£'400,ooo,  and 
as  fixed  charges  are  only  a  trifle  more,  the  balance 
forward  is  rai.sed  by  ;^30,ooo  to  ;^248,5C)0,  after  pro- 
viding for  a  dividend  of  5f  per  cent.  The  malcontents 
want  only  _^200,ooo  placed  to  reserve,  and  an  extra 
i  per  cent,  on  the  ordinary  stock,  which  would  bring  the 
distribution  up  to  the  1913  level.  Reserve  and  depre- 
ciation funds  now  stand  at  ;^7,405,ooo,  having  been 
augmented  by  ;^i,930,oc)0  during  the  year.  It  is  a 
substantial  sum,  but  the  arrears  of  work  are  heavy, 
and  the  future  uncertain,  so  we  cannot  extend  murh 
sympathy  to  the  agitation. 


On  working  results  the  North-Eastern  Railway  did 
less  well  than  some  of  its  neighbours,  for  while  receipts 
rose  ;^i, 030,000  to  ^'14,034,000,  expenses  advanced' 
;^i,o85,ooo  to  ;^' 1 0,000 ,000.  Fortunately,  miscel- 
laneous revenue  was  ;^6o,ooo  higher  at  ;£'223,ooo,  and 
;^!i3,ooo  more  was  brought  in,  while  fixed  charges 
were  ;£^  10,000  lower.  After  again  placing  ;£r20o,ooo  to 
reserves  and  ;^50,ooo  to  pension  fund,  the  dividend  of 
6i  per  cent,  is  repeated,  and  the  carry  forward  is  in- 
creased by  ;^26,soo  to  £^296, 600.  Depreciation  and 
reserve  funds  in  all  have  been  credited  with  ;^  1,3 10, 000, 
and  now  amount  to  ;^5,4i3,ooo.  It  is  mentioned  in 
the  report  that  17,185  men  of  the  company's  staff  have 
joined  the  colours,  which  is  equivalent  to  3ii  per  cent. 
of  the  total  number  employed  by  the  company  at  the 
beginning  of  the   war. 

We  wonder  whether  it  is  mere  thoughtlessness  or  the 
silliest  sort  of  stupidity  that  leads  so  many  railway 
companies  to  omit  last  year's  figures  of  gross  receipts 
and  expenses  from  their  accounts?  They  are  obliged 
to  show  nett  revenue  and  a  host  of  other  details  for 
the  corresponding  period,  but  repeatedly  we  find  the 
columns  for  the  two  items  mentioned  ostentatiously  left 
blank,  and  the  previous  report  has  to  be  turned  up  to 
get  the  comparison.  The  Midland  Railway  is  a  sinner 
in  this  respect,  and  the  reason  for  the  omission 
puzzles  us  in  a  derisory  kind  of  way,  although  the 
trouble  to  us  of  finding  the  missing  figures  is  trifling, 
but  it  may  be  much  more  irksome  to  shareholders  and 
others  interested  in  the  line.     Anyhow,  for  the  benefit 


February  i6,   igi8. 


^be  Jnvestow*  "Review. 


165 


I 


of  those  whom  it  concerns,  we  may  state  that  the  gross 
receipts  in  1917  were  ;^i8,i67,ooo,  as  compared  with 
j^i6, 860,000  in  1916,  an  increase  of  ;^i,307,ooo,  while 
the  expenditure  was  ;£"i2,5i5,ooo,  an  increase  of 
;^^i,3i9,ooo.  It  may  be  of  interest  to  mention 
that  last  year  the  receipts  showed  an  increase 
of  ;£,y6o,ooo  over  1915,  and  the  expenses  an  increase 
of  ^755.000.  Nett  revenue  was  ;£'i2,ooo  lower  at 
;£,'5,652,ooo,  but  miscellaneous  receipts,  mainly  owing 
to  an  improvement  in  general  interest,  were  ;^i5,6oo 
higher  at  ;^,'627,ooo,  and  ;^i6,400  more  was  brought 
forward.  Fixed  charges  required  ;£^3,ooo  more  at 
;£j'i,47o,ooo,  and  ;^20o,ooo  is  again  placed  to  general 
reserve,  so  that  the  dividend  of  4  per  cent,  on  the  de- 
ferred stock  (of  which  ij  per  cent,  has  been  paid  as 
interim)  can  be  comfortably  repeated,  and  the  balance 
over  is  raised  by  ;^i7,ooo  to  ;^i75,7oo.  Capital  expendi- 
ture amounted  to  ;£'i  10,000,  as  against  ;^27,ooo  in  the 
previous  year,  and  the  account  is  now  ;^3, 848,000  over- 
drawn, but  the  company  has  ample  funds  to  carry  on 
with  for  the  time  being.  No  less  than  ;^i, 320,000  has 
been  set  aside  during  the  year  for  arrears  of  railway 
maintenance,  and  the  total  depreciation  and  reserve 
funds  now  amount  to  ;^8, 41 5,000  against  ;^6, 723,000  at 
the  end  of  1916.  That  looks  pretty  healthy,  but  it  must 
not  be  forgotten  that  the  well-watered  capital  amounts 
to  over  200  millions,  and  the  actual  capital  expenditure 
has  been  130  millions.  Cash  in  hand,  including  Trea- 
sury bills,  has  fallen  ;^76o,ooo  to  ;^3, 350,000,  but  in- 
-vestments  in  Government  securities  have  increased 
nearly  two  and  a^half  millions  to  ;£'3,720,ooo,  against 
savings  bank  and  provident  funds  amounting  to 
;^2,820,ooo.  The,  position  looks  healthy  enough  at 
least  from  a  superficial  point  of  view,  and  we  may 
leave  it  at  that. 

The  London  and  South-Western  Railway  obtained 
an  increase  of  ;^675,ooo  in  gross  receipts,  the  total 
being  ;^7, 656,000,  but  expenses  rose  ;^679,ooo  to 
;^5, 620,000.  Changes  of  a  thousand  or  two  up  or 
down  have  occurred  in  nett  revenue  credits,  the 
balance  brought  in,  and  fixed  charges,  but  they  are  not 
worth  following  in  detail.  Suffice  it  to  say  that  after 
placing  p^20,ooo  to  electrification,  suspense  account, 
and  meeting  fixed  charges,  the  balance  is  ;^2,ooo  up 
at  ;^i, 674,000.  The  dividend  on  the  ordinary  stock  is 
again  5^  per  cent.,  and  on  the  deferred  ij  per  cent., 
for  the  year,  leaving  ;^2,ooo  more  at  ;^63,65o  to  be 
carried  forward.  Capital  expenditure  was  relatively 
lieavy  at  ;^97,S50,  but  this  compares  favourably  with 
;^225,ooo  in  1916  and  ;^62o,ooo  the  year  before.  The 
capital  account  is  now  ;^i,270,ooo  overdrawn.  De- 
preciaticm  and  other  funds  have  been  increased  by 
j^42o,ooo,  and  now  stand  at  ;^i, 656,000. 

After  looking  through  the  accounts  of  the  Caledonian 
Railway  Co.,  we  are  not  inclined  to  recommend  its 
policy  of  increasing  the  dividend  for  imitation 
by  other  companies.  Gross  receipts  were  ;;^670,ooo 
higher  at  ;^6, 883,000,  and  of  this  ;^8,ooo  was 
saved  in  nett  revenue,  which  comes  out  so  much  to 
the  good  at  ;^2, 162,000.  Miscellaneous  receipts  were 
^9,000  up  at  ;^i74,ooo,  but  the  balance  brought 
in  was  ;^,io,ooo  less,  so  that  there  was  not 
much  of  a  margin'  to  squander.  However,  ;^i8,ooo 
was  saved  on  general  interest,  and  the  dividend  on  the 
ordinary  stock  is  raised  from  3I  per  cent,  to  3^,  re- 
<juiring  an  additional  ;^23,ooo,  and  the  balance  forward 
is  ;^i,c)oo  lower  at  ;^'i8,i5o.  That  looks  like  sailing 
very  close  to  the  wind.  It  is  true,  reserve  and  other 
funds  have  been  increased  by  ;^620,ooo,  but  tliey  had 
been  shockingly  neglected  in  the  past,  and  still  amount 
to  no  more  than  ;;{^  1,050, 000,  so  that,  with  all  the 
arrears  to  be  made  good,  we  cannot  regard  the  position 
as  entirely  satisfactory. 


appointed  at  a  meeting  held  in  Glasgow  last  December 
at  which  holders  of  some  15  millions  of  stock  were 
represented,  and  the  main  object  appears  to  be  to  take 
such  steps  as  may  be  considered  necessary  towards 
securing  fair  treatment  for  stockholders  at  the  end  of 
the  war,  whatever  the  attitude  of  the  Government 
towards  the  railways  may  then  or  thereafter  be.  It  is 
stated  that  the  outlook  for  railway  stockholders,  the 
majority  of  whom  are  small  investors,  with  an  average 
holding  of  not  more  than  ;^50O,  is  very  uncertain,  while 
the  increased  wages  bill  now  amounts  to  a  very  heavy 
annual  burden  on  the  receipts,  and  the  interests  not 
only  of  the  ordinary  but  of  the  preference  and  even  the 
debenture  stocks  will  be  seriously  threatened.  And  so, 
evidently  with  the  warm  approval  of  the  directors, 
holders  may  join  the  association  for  a  subscription  of 
anything  from  half-a-crown  to  a  guinea.  English  com- 
panies please  copy.  It  is  perhaps  rather  unfortunate 
that  this  movement  should  have  been  inaugurated  in  a 
section  where  the  railways  have  done  remarkably  well 
in  the  past  year.  The  North  British  obtained  gross 
receipts  of  ^7,21 1,000,  an  increase  of  ;^74o,ooo,  follow- 
ing a  gain  of  ;^64o,ooo  in  igi6.  Working  expenses 
were  ^"683,000  higher  at  ;^4,9i4,ooo,  following  an 
advance  of  ^660,000  last  year,  but  even  so  nett  revenue 
was  ;^57,ooo  up  at  ;^2,297,ooo,  and  a  small  decline  in 
miscellaneous  receipts  was  offset  by  the  larger  amount 
brought  in.  Consequently  the  total  available  balance 
was  ;^58,ooo  up  at  ;^2,4o6,ooo,  but  fixed  charges  re- 
quired ;^3o,ooo  more  at  ;^8g4,ooo,  and  after  again 
placing  ;^20,ooo  to  reserve  the  dividend  on  the  deferred 
stock  is  raised  from  J  per  cent,  to  f  per  cent.,  and  the 
carry  forward  is  only  3^1,700  less  at  ;^36,300.  Capital 
expenditure  amounted  to  ;^i92,ooo  against  ;^i  13,000, 
and  the  account  is  now  ;^2,g32,ooo  overdrawn,  an  in- 
crease of  ;^425,ooo.  During  the  year  ;^277,ooo  has 
been  added  to  the  various  depreciation  and  reserve 
funds,  which  now  amount  to  ;^972,c>oo,  the  renewals 
fund  being  ;^68o,ooo  and  the  reserve  ;^240,ooo.  The 
total  looks  substantial,  but  in  these  times  it  makes  one 
rather  uneasy  to  see  capital  expenditure  mounting  up 
as  it  does. 


HAVE     ALL     TICKETS     READY 

Passengers  save  themselves  delay  and  other 
passengers  delay  by  having  their  tickets 
ready,  and  so  avoiding  holding  up  tht 
traffic  at  tha  lifts   and   barriers. 

This  is  a  rule  of  good  conduct  made  in  thfr 
interests  of  the  public. 


War  conditions  have  created  many  new  precedents, 
but  surely  one  of  the  most  curious  is  that  along  with 
the  report  of  the  North  British  Railway  Co.  there  is 
issued  a  circular  from  the  Scottish  Railway  Stock- 
holders' Protection  Association.     This  association  was 


UNDEPCtCUNn 


Electric  Railway  House,  Broadway,  Westminster,  S.W.I. 


j66 


Zbc  5nvc6tor8'  IReview* 


February  i6,  1918. 


These  "  most  pathetic  lines,"  the  South-Eastern  and 
Chatham,  have  been  waiting  for  years,  with  an  opti- 
mism worthy  of  a  better  cause,  for  "  something  to  turn 
up,"  or  they  would  long  ago  have  wiped  off  a  huge 
chunk  of  dead  capital,  and  started  on  a  fresh  career 
that  ought  to  have  been  more  profitable  to  everybody 
concerned.  But  they  stick  to  the  costly  and  clumsy 
arrangement  of  a  Managing  Committee,  and  the  pro- 
gress made  is  not  exactly  dazzling.  Last  year  the  gross 
receipts  were  ;^6,o6o,ooo,  an  increase  of  ;(^330,ooo,  but 
working  expenses  advanced  ;^'334,C)00  to  ;^"4,o47,ooo, 
so  that  with  miscellaneous  revenue  unchanged  the  nett 
income  is  ;^'4,oc)o  lower  at  ;^2,o2o,ooo.  Fixed  charges 
were  the  same  at  ^"183, 000,  and  of  the  balance  the 
South-Eastern  gets  ^'i, 083,000,  or  ;^2,ioo  less,  and 
the  Chatham  ;^753,ooo,  or  ;^i,400  less,  the  proportions 
being  59  per  cent,  and  41  per  cent,  respectively.  Dur- 
ing the  year  depreciation  funds  have  been  increased  by 
;£r445,ooo,  and  now  amount  to  ;£j^i  ,180,000,  but  it  will 
require  a  great  deal  more  spent  on  the  lines  to  bring 
ihem  up  to  a  decent  standard  of  efficiency.  With  mis- 
cellaneous revenue  the  total  income  of  the  South- 
Eastern  is  ;^i,433,ooo,  a  decrease  of  ;^6,300,  but  the 
amount  brought  in  was  larger,  and  after  paying  fixed 
charges  the  balance  is  ^3,200  up  at  ;^98o,220.  After 
again  phuing  ;^"i 5,000  to  reserve,  the  dividend  of  ij 
per  cent,  for  the  year  on  the  deferred  stock  is  repeated, 
and  the  balance  forward  is  a  trifle  larger  at  ;^i 2,540. 
In  the  case  of  the  London,  Chatham  and  Dover  Rail- 
way Co.  the  total  nett  income  was  ;^2,5oo  larger  at 
^£,'822, 300,  but  the  amoM'Tt  brought  in  was  smaller,  and 
the  balance  available  after  paying  fixed  charges  is 
almost  identical  at  ;^.'386,530.  This  allows  of  4^  per 
cent,  being  again  paid  on  the  Arbitration  preference 
stock,  and  the  carry  forward  is  ;^3oo  up  at  ;^83,8oo. 
Nothing  else  in  the  accounts  calls  for  remark. 


the  dividend  of  22J  per  cent.,  tax  free,  on  the  ordinary 
shares,  the  carry-forward  is  ^'5 1,000  higher  at 
^2ji,ooo,  subject  to  customers'  final  bonus.  It  is 
aJtogether  a  wonderful  achievement,  and  evidently 
higher  duties  and  a  certain  amount  of  control  of  retail 
prices  have  done  nothing  to  interfere  with  the  pro- 
sperity of  the  company.  Creditors  and  bills  payable 
are  ;£,'i,  120,000  up  at  ;^'4, 505,000,  while  stocks  have 
increased  ;^"i, 300,000  to  £^9,791,000,  po  doubt  largely 
owing  to  the  higher  cost  of  raw  materials.  Debtors 
owe  ;^'890,ooo  more  at  ;^'4, 178,000,  and  £.'480,000 
more  at  ;^794,ooo  has  been  paid  on  account  of  leaf  in 
transit,  &c.  Investments  are  np  £'480,000  at 
£^2,405,000,  but  Treasury  bills,  &c.,  are  £^1,200,000 
down  at  ^250,000,  while  cash  has  increased  £240,000 
to  ;^i,o83,ooo.  The  position  looks  as  strong  as  could 
be  desired. 


In  the  report  of  the  British  Wagon  Co.,  Ltd.,  it  is 
mentioned  that  owing  to  the  serious  shortage  of  labour 
and  great  difficulty  in  obtaining  the  necessary  materials, 
considerable  delay  has  occurred  in  the  repair  of  wagons. 
At  the  request  of  the  Railway  Executive,  steps  have 
been  taken  to  deal  with  this  difficult  position,  and  as  a 
result  of  conferences  with  other  similar  concerns,  it  has 
been  decided  to  form  a  new  company  called  ' '  Wagon 
Repairs,  Ltd.,"  which  will  take  over  the  wagon  repair- 
ing businesses  of  the  companies  interested,  but  their 
head  works  will  not  be  included  in  the  arrangement — 
for  at  present  at  all  events.  This  union  of  interest,  it 
is  hoped,  will  effect  many  economies,  promote  efficiency 
and  usefully  subserve  the  national  interests.  In- 
cluding £"1,000  more  brought  in,  the  nett 
profits  of  the  British  Wagon  Co.  were  ;£58,830,  a 
decrease  of  £'3,400,  but  debenture  interest  required  less, 
and  the  directors  are  able  to  repeat  the  dividend  of  8s. 
per  £['3  share,  and  2s.  8d.  per  £■!  share,  while  £75,000  is 
again  placed  to  reserve,  raising  it  to  £'180,000.  The 
balance  forward  is  the  same  at  £^6,400.  Debentures 
have  been  reduced  £^138,000  to  £^^690, 000,  and  the 
value  of  the  assets  has  been  written  down  £^100,000  to 
';^936,ooo,  the  number  of  wagons  owned  being  3,000 
smaller  at  31,000. 


At  first  sight  it  looks  as  though  the  Imperial  To- 
bacco Co.  (of  Great  Britain  and  Ireland),  Ltd.,  had  not 
had  quite  such  a  profitable  year  to  October  31  last,  but 
a  closer  study  of  the  figures  shows  that  this  is  not  the 
case.  Nett  profit  is  brought  out  at  ;^3, 538,000,  a  de- 
crease of  ;^374,ooo,  but  the  figure  is  arrived  at  after 
providing  reserves  for  income-tax  and  excess  duty,  both 
of  which  are  on  a  higher  scale  than  in  the  previous 
year,  and,  moreover,  in  the  last  accounts  the  reserve 
for  income-tax  was  entered  on  the  debit  side  at 
£■527,000.  Nothing  this  time,  as  against  ;^25,ooo,  is 
written  off  leaseholds,  and  after  again  .setting  aside 
£50,000  for  pensions  and  placing  a  milKon  to  reserve 
fund,  the  balance  is  ;^i78,ooo  up  at  £^2,488,000.  On 
the  other  hand,  the  amount  brought  in,  after  deducting 
bonuses  to  customers — £198,000  against  £'170,000 — 
was  £^121,000  less  at  ;£'22,ooo,  so  that,  after  repeating 


It  is  no  secret  that  our  efforts  to  supply  our  require- 
ments in  the  matter  of  dyes  have  not  been  attended 
with  the  fullest  success,  though  great  progress  has 
been  made.  British  Dyes,  Ltd.,  has  achieved  a  great 
deal,  but  nothing  like  enough,  and  as  a  result  other 
manufacturers  have  been  induced  to  take  up  the  manu- 
facture of  dyes,  including  some  of  1,he  explosive  com- 
panies. An  announcement  is  expected  to  be  made 
shortly  of  a  further  development  in  the  British  Govern- 
ment's policy  in  regard  to  this  matter.  It  is  proposed 
to  allot  a  sum  of  money  to  British  dye  manufacturers 
to  encourage  them  to  lay  down  plant  to  produce  par- 
ticulffr  kinds  of  dyes  which  require  great  skill  in  the 
making,  and  are  indispensable  for  the  future  of  in- 
dustry. The  money  will  be  advanced  to  the  manufac- 
turers in  the  form  of  secured  loans.  It  is  also  intended 
to  prohibit  the  importation  of  dyes  for  a  number  of 
years  after  the  war,  except  on  Government  order.  In 
fact,  the  Government  will  be  the  sole  importer  of 
foreign  dyes,  and  will  control  the  production  of  certain 
kinds  of  dyes  in  this  country. 


The  Board  of  Referees  has  rendered  two  important 
decisions  this  week  in  regard  to  applications  made  for 
increased  statutory  percentages  under  the  excess  profits 
duty  provisions  of  the  Finance  Acts^  It  has  raised  the 
statutory  percentage  for  Chilean  nitrate  companies  to 
9  per  cent,  on  the  capital  employed,  and  for  Indian 
gold  mining  companies  to  27^  per  cent.  This  is  the 
first  of  the  important  gold  mining  applications  to  be 
decided.  The  question  of  what  percentage  shall  be 
allowed  for  the  Rand  companies  has  yet  to  be  argued. 
The  rubber  companies'  second  application,  we  are  in- 
formed, will  probably  be  made  next  month.  At  pre- 
sent the  statutory  percentage  is  10  per  cent.*,  but  it  is 
hoped  to  get  this  raised  to  at  least  15  to  20  per  cent. 

Exceptional  interest  attaches  to  the  report  of  the  City 
of  London  Brewery  Co.,  Ltd.,  for  the  past  year,  owing 
to  the  handsome  dividend  and  bonus  of  30  per  cent., 
which  compares  with  5  per  cent,  for  the  previous  12 
months.  Attention  is  called  to  the  fact  that  the 
ordinary  capital  was  reduced  by  70  per  cent,  in  191 4, 
and  the  profits  have  since  been  allowed  to  accumulate 
until  it  was  seen  that  the  interests  acquired  at  Fulham 
were  being  satisfactorily  developed.  Exceptional  pro- 
fits have  l^en  made  in  addition  to  these  accumulations, 
and  the  shareholders  are  warned  not  to  expect  a  repeti- 
tion of  the  bonus  of  20  per  cent.  Gross  profits  were 
£^■63,000  higher  at  £'246,310,  and  after  providing  for 
depreciation,  debenture  interest,  and  all  other  expenses 
the  nett  profit  also  is  ^^63,000  up  at  ;^i35,28o,  while 
£^17,000  more  was  brought  in.  Consequently  the  direc- 
tors are  able  to  place  £20,000,  against  £"15,000,  to  re- 
serve (raising  it  to  £?!  12,000),  and  after  providing  for 
the  dividend  and  bonus  the  balance  forward  is  practi- 
cally the  same  at  ;^58,42o.  Nothing  in  the  balance- 
sheet  calls  for  remark,  but  the  company  has  greatly 
strengthened  its  fwsition. 

Although  tihe  results  of  Wm.  France,  Fenwick,  and 
Co.,  Limited,  for  1917  show  a  considerable  falling  off 
as  compared  with  the  previous  year,  the  shareholders 


Februarv  i6,   1918. 


tibe  5nve8tor8'  IReview, 


167 


can  scarcely  regard  them  as  other  than  quite  satisfac- 
tory. Trading  profits  amounted  to  ;^i66,950,  a  de- 
crease of  ;^93,ooo,  and,  after  paying  debenture  interest, 
the  n«tt  profit  is  ;^"88,ooo  down  at  £\t,9,720.  But  the 
shareholders  are  again  to  receive  a  dividend  of  15  per 
cent,  and  a  bonus  of  10  per  cent.,  while  the  carry  for- 
ward is  £iAO°  higher  at  ;^8,3io.  This  is  accom- 
plished by  reducing  the  appropriations  to  reserve  by 
y^90,ooo.  The  general  reserve,  however,  including  pro- 
ceeds of  steamers  lost  and  sold  during  Uhe  year,  less 
their  book  value,  has  been  increased  by  ^350,000,  and 
now  stands  at  ;^750,ooo,  against  an  issued  capital  of 
;^3oo,ooo,  and  the  special  reserve  for  war  contin- 
gencies amounts  to  ^"67,000,  after  charging  ;^92,350 
for  excess  profits  duty,  &c.,  so  that  the  company  is  in 
an  exceptionally  strong  position.  During  the  year 
;^40,ooo  debenture  stock  has  been  redeemed,  reducing 
the  amount  outstanding  to  ;^96,400,  while  investments 
have  increased  ;^28o,ooo  to  £,-jo7,ooo,  and  debtors, 
stores,  &c.,  are  ;^i70,ooo  higher  at  ;^274,ooo.  Pro- 
perty account  has  been  reduced  to  ;^320,ooo,  and  the 
company  has  nothing  to  fear  when  normal  conditions 
are  restored. 


Comparatively  small  changes  are  shown  in  the  re- 
sults of  the  Port  Talbot  Railway  and  Docks  Company 
for  the  past  year.  Gross  receipts  were  ;;^i,ooo  down 
at  ;^I36,I70,  while  expenses  were  ;^i,ooo  up  at 
£73,660,  but  miscellaneous  credits  were  the  same,  and 
the  total  nett  income  of  ;^i20,75o  is  ^2,000  lower.  On 
the  other  hand,  fixed  charges  also  were  rather  less  at 
^^39,720,  and,  after  again  paying  9  per  cent,  on  the 
ordinary  shares,  the  balance  forward  is  a  trifle  larger 
at  ;^4,O50.  Capital  expenditure  amounted  to  ;£8,540, 
or  rather  more  than  last  year,  and  the  account  is  now 
overdrawn  to  the  extent  of  ^404,000.  The  company 
has  a  reserve  fund  of  only  ;£'6,ooo,  and  no  specific  pro- 
vision appears  to  have  been  made  for  deferred  main- 
tenance. Is  it  quite  prudent  to  continue  paying  such 
a  large  dividend  in  these  circumstances? 


John  Knjght,  Ltd.,  of  the  Royal  Primrose  Soap 
Works,  notwithstanding  the  serious  damage  done  to 
the  comjpany's  factory  by  the  Silvertown  explosion,  and 
S'ubsequentJy  by  a  destructive  fire,  in  the  year  to 
November  30  earned  practically  the  same  profit  as  in 
the  pre\'Jous  twelve  months.  The  accounts  show  only 
;^74,40o,  or  ;^3 1,000  less,  but  the  apparent  decline  is 
due  to  the  provision  of  excess  duty.  Anyhow,  ;^39,ooo 
more  was  brought  in,  and,  after  placing  ;^i8,i4o  (new) 
to  reserve,  raising  it  to  ;j<i'7o,ooo,  the  ordinary  shares' 
again  receive  8^  per  cent,  and  the  ;^70,ooo  deferred 
shares  ;^i2,50o,  or  almost  18  per  cent.,  while  the  carry 
forward  is  only  ;^3,ooo  smaller  at  £71,620.  Nothing 
in  the  balance-sheet  need  detain  us,  but  we  may  note 
that  altogether  ^"26,260  has  been  spent  on  extensions 
and  alterations  required  for  Government  work. 


Further  striking  progress  is  shown  by  the  Union 
Bank  of  Canada  in  its  report  to  November  30,  and  the 
balance-sheet  now  reaches  the  handsome  total  of 
$143,412,000,  an  increase  of  $34,400,000  over  the  pre- 
vious year,  which  in  turn  was  $18,400,000  ahead  of  the 
1915  figures.  Notes  in  circulation  have  increased  4 
millions  to  $12,780,000,  current  accounts  15  millions  to 
$44'369.ooo,  and  deposit  accounts  13  millions  to 
$73>5o8)OOo-  On  the  other  hand,  coin  and  Dominion 
notes  are  up  $10,300,000  at  $20,469,000,  and  deposits 
in  central  gold  reserves  $3,500,000  at  $8,200,000. 
Altogether  cash  balances,  short  loans,  and  investments 
amount  to  70  millions,  an  increase  of  $20,400,000. 
Loans  and  discounts  in  Canada  have  risen  $9,600,000 
to  $58,790,000,  and  those  outside  Canada  $2,300,000 
to  $3,154,000,  while  letters  of  credit  are  up  2  millions 
at  $2,587,000.  All  this  indicates  expanding  conditions 
of  business,  with  the  result  that  profits  have  advanced 
$112,000  to  $763,460.  The  usual  dividend  of  8  per 
cent,  and  bonus  of  i  per  cent,  are  paid,  $150,000  is 
again  placed  to  contingent  account,  charities  get 
$15,000,  against  $5,000,  and  $75,000  (new)  is. written 


off  bank  premises,  leaving  $13,000  more  at  $106,600  to 
be  carried  forward.     It  is  a  fine  display  at  all  points. 


The  spectacular  rise  of  a  month  ago  in  the  shares  of 
the  Gaika  Gold  Miming  Company,  which  was  due  to 
the  striking  of  a  new  reef  in  the  south  section  of  the 
mine,  has  been  followed  this  week  by  a  sharp  relapse. 
This  was  due  to  the  receipt  of  news  from  the  mine  to 
the  effect  that  the  reef  had,  on  closer  acquaintance, 
been  found  to  have  lost  a  great  deal  of  its  earlier  bril- 
liant promise.  The  length  of  the  pay  shoot  seems  to 
be  only  205  feet,  the  last  payable  result,  namely,  21.7 
dwts.  over  72  inches,  having  been  reached  at  that  poini. 
This  would  g\ve  an  average  value  over  the  whole  dis- 
tance of  about  I  oz.  4  dwts. ,  with  an  average  width  of 
88  indhes.  TIhe  drive  on  the  reef  has  been  extended  to 
215  feet,  but  the  reef  is  now  in  poor  ground.  Further 
prospecting  is  being  undertaken  in  this  section  of  the 
mine  in  the  hope  of  discovering  a  payable  extension  of 
the  reef.  This  incident  is  but  another  confirmation  of 
the  experience  which  has  shown  that  it  is  an  unfortu- 
nate characteristic  of  Rhodesian  gold  mines  to  {>eter  out 
at  depth,  the  only  conspicuously  shining  example  to 
the  contrary  being  the  Globe  and  Phoenix  Mine. 

Last  June  a  very  acute  situation  arose  in  the  Lanca- 
shire cotton  industry,  and  it  was  necessary  for  the 
Government  to  intervene,  with  the  result  that  a  Control 


LLOYDS  BANK 
IIMITED. 


HEAD  OFFICE: 
71,  LOMBARD  ST.,  E.C.  3. 


DIRECTORS. 

Cluiriiu:  Sir  RICHARD  V.  VASSAR  -  SMITH,  B>rt. 


Depntr-Oiairmaii :  J. 
CHARLES  E.  BARNETf. 
HENRY  BELL 

HON.  ROBERT  H.  BRAND,  CM.a 
JOHN  H.  CLAYTON. 
WILFRED  S.  DE  WINTON. 
MAJOR  JAMES  W.  GARTO.N. 
AUSTIN  £.  HARRIS. 
SIR  HENRY  H.  A.  HOARE.  Birt 
J.  ARTHUR  KENRICK. 
SIR  H.  SEYMOUR  KING.  K.CLE. 


W.  BEAUMONT  PEASE. 

I    CAPT.  GEORGE  LLOYD,  CLE, 

HOWARD  LLOYD.        [D.S.O..  M.P. 
I    MAJOR  REGINALD  K.  MORCOM. 

PHILIP  E.  NOBLE. 

ARTHUR  E.  PATTINSON. 

ARTHUR  F.  PEASE. 

OSWALD  SANDERSON. 

ANDREW  WEIR. 

GEORGE  D.  WHATMAN. 

ROBERT  WOODWARD. 


CAPITAL  SUBSCRIBED 

-  £31,304,200 

CAPITAL  PAID  UP    - 

5,008,672 

RESERVE  FUND 

.       4,000,000 

DEPOSITS,  &c.  (Dec.,  1917)  174,697,945 

ADVANCES,  &c.       do. 

61,466,709 

THIS  BANK  HAS  NEARLY  900  OFRCES  IN 
ENGLAND  AND   WALES. 


FRENCH    AUXILIARY: 

LLOYDS  BANK  (FRANCE)  AND 
NATIONAL  PROVINCIAL  BANK  (FRANCE)  LTD. 

HEAD    OFFICE: 

60,  LOMBARD  STREET,  LONDON,  E.C.  3  (Temporary  Address). 

OFFICES   in    FRANCE: 

PARIS  (3,  Place  del'Ope'ra),  BIARRITZ,  BORDEAUX,  HAVRE  &  NICE. 


1 68 


Ube  5nve8tor8'  IRevicw. 


February  i6,  1918. 


Hoard  was  appointed  with  very  extensive  powers.  The 
problem  which  then  required  attention  related  to  the 
steady  decrease  in  the  stocks  of  American  cotton  in 
Liverpool,  prices  during  the  month  of  June  having  ad- 
vancx;d  5d.  per  lb.  The  Board,  which  was  compo-sed  of 
representatives  of  the  Board  of  Trade  and  local 
spinoers  and  manufjicturers,  at  once  got  to  work.  In 
a  few  weeks  it  was  decided  to  restrict  consumption  by 
the  stopping  of  a  percentage  of  spindles  and  looms.  A 
census  of  cotton  st(x:ks  was  taken  at  the  end  of  Octo- 
ber, which  showed  supplies  available  for  this  country 
of  573, .s8g  bjiles  American,  94,138  bales  East  Indian, 
137,109  bales  Egyptian  and  Peruvian,  and  48,158  bales 
of  sundry  cottons.  The  policy  of  the  Control  Board 
has  been  vindicated  this  week,  when  a  similar  census 
was  taken.  It  is  announced  that  the  stocks  available 
for  this  country  arc  now  685,983  bales  American, 
149,174  bales  East  Indian,  277,422  bales  Egyptian  and 
Peruvian,  and  41,466  bales  of  sundry  cottons.  Im- 
ports, of  cour.se,  arc  very  irregular  according  to  ship- 
ping facilities,  but  the  action  taken  by  the  authorities 
has  undoubtedly  saved  the  Lancashire  cotton  industry 
from  disaster.  If  matters  had  been  allowed  to  run 
their  own  course,  no  one  knows  to  what  height  prices 
would  have  been  put  up,  and  undoubtedly  numerous 
firms  would  have  had  to  close  down. 


"Rhonddaism  in    Excelsis." 

"  We  are  g«ttinig  on  !  "  Mr.  Asquith  once  remarked 
at  some  rather  startling  deviation  from  the  usual  Par- 
liamentary aimenaties ;  and  really  this  simple  phrase  is 
all  that  we  have  breath  to  utter  as  we  watch  the 
amazing  progress  of  Lord  Rhondda,  who,  marching 
like  a  conqueror,  a  Hiindenburg  and  a  Ludendorff 
rolled  into  one,  crushes  one  of  the  most  cherished 
liberties  of  England  at  every  triumphant  stride  ! 

We  wore  proud  in  this  country  that  we  were  free 
from  domiciliary  police  visits  except  under  a  magis- 
trate's warrant  where  there  was  grave  suspicion  of 
crime,  but  now  our  dwellings  can  be  searched  from  the 
attic  to  the  cellar  at  the  will  of  miscellaneous  Com- 
mittees distributed  over  the  country,  of  whose  member- 
ship and  powers  most  people  are  wholly  ignorant,  and 
of  their  equally  miscellaneous  hordes  of  attendant 
officials.  As  to  the  suspicions  that  move  this  army 
corps  of  Sherlock  Holmes  to  action,  we  gather  that 
inquisitorial  searches  in  tradesmen's  books,  anony- 
mous letters,  the  sight  of  parcels  at  railway  stations, 
and  similar  recondite  clues  guide  the  up-to-date 
Rhondda  detective  in  his  duty  of  bringing  condign 
piunishment  on  the  householder  who  has  dared  to  show 
more  foresight  in  his  provision  for  the  needs  of  his 
family  than  the  Food  Ministry  has  shown  foi  the  needs 
of  the  nation.  It  is  well  known  in  Oriental  countries 
that  it  is  imprudent,  not  to  say  perilous,  for  the 
governed  to  show  greater  wisdom  than  the  governors. 

A  new  and  most  appalling  crime  has  been  added  to 
the  Decalogue — the  crime  of  hoarding  !  What  it  is 
exactly  no  one  knows — not  even  the  Food  Controller 
or  the  Law  Officers  of  the  Crown.  Like  "  the  shape 
which  shape  had  none,"  it  cannot  be  defined  ;  it  is 
shrouded  in  mystery  as  in  a  fog,  and  there  is  no  house- 
holder who  does  not  manage  his  store  cupboard  on  the 
famous  Mother  Hubbard  principle  who  can  be  certain 
that  he  is  not  guilty  of  it,  and  that  he  may  not  at  any 
moment  be  dragged  into  a  police-court  and  subse- 
quently housed  in  gaol. 

There  has  been  much  criticism  of  the  Food  Ministry 
in  the  past,  but  hitherto  no  one  has  suggested  that  it 
was  too  silent  a  service  like  the  Navv.  On  the  con- 
trary, a  great  many  of  us  have  fell  that  we  would 
gladly  stop  our  ears  and  close  our  eyes  if  we  could 
against  the  deluge  of  speeches,  lectures,  addresses, 
recipes,  leaflets,  pamphlets,  placards,  that  have  been 
poured  forth  in  an  endless  stream  on  a  patient  and 
long-suffering  nation  from  Lord  Rhondda 's  head- 
quarters. But  now,  when  speech  might  be  really 
helpful,  a  dead  silence  has  descended  on  the  Food 
Ministry.  To  all  questions  on  the  nature  of  Food 
Hoarding,  it  gives  even  more  darkling  an^vers  than 


the  famous  oracle  at  Delphi.  May  the  householder 
keep  supplies  for  a  week,  for  a  fortnight,  for  a  month? 
"  It  all  depends,"  is  the  oracular  response  of  the  Food 
Ministry.  One  food  official  explains  that,  though  no 
definition  of  criminal  hoarding  is  possible,  yet  the 
Ministry  is  always  "  reasonable."  If  Lord  Rhondda  is 
under  the  impression  that  any  single  person  in  this 
country  who  is  not  an  official  has  the  smallest  con- 
fidence in  the  judgment,  discretion,  or  reasonableness 
of  any  Government  Department  in  its  dealings  with  the 
helple.ss  public,  when  not  guided  by  the  strictest  rules, 
he  should  promptly  produce  that  confiding  being  and 
show  him  carefully  under  a  glass  case. 

The     fact     is     that     the     manner     in     which     this 
sudden   campaign   of    food-hoarding    prosecutions   has 
been  initiated  shows  a  total  want  of  judgment  in  the 
Ministry,       and       suggests       very       strongly       what 
is      called      "  playing      to      t^e      gallery."         While 
the      whole      nation       has       been      bewildered     with 
speeches    and    advice,    no    attention    was    ever    called 
to  the  terms  of  the  Food  Hoarding  Order  of  last  April, 
which  is,  in  any  case,  very  vaguely  drawn,  and  of  the 
existence  of  wiuch  probably  a  large  num'ber  of  people 
are  quite  ignorant.     Then,  without  a  word  of  warning, 
there  is  a  burst  of  prosecutions  ;  a  perfect  vendetta  is 
set  on  foot  in  a  section  of   the    Press  ;    there   is  such 
widespread   alarm   that    it  is    generally    repoited   that 
people  are  destroying  food  stocks  which  they  may  have 
bought  in  the  most  entire  good  faiih.      Probably  it  was 
this  fact  that  led  Lord  Rhondda  to  announce   a   week's 
grace  ;   but    even   that,    unless   accompanied   by   some 
definition  of  hoarding,  leaves  the  public  wholly  at  the 
mercy  of  the    local   Food    Committees  and  their  indi- 
vidual caprices.     What  sort  of  justice  is  there  in  con- 
fiscating supplies  bought  in  good  faith  when  there  was 
no  acute   shortage  in  those   particular   articles?     If   it 
be  decided  that  no  private  stocks  are  to  be  held — a  very 
doubtful  policy  in  the   national    interest — these   stocks 
should  be  bought  back  at  a  fair  price.      But  is  it  really 
desirable  that  people  .should  be  prevented   from   keep- 
ing   reasonable  stores,   and  should    be  entirely   unpre- 
pared   to   meet   any    acute    scarcity     should    it    arise? 
Are  Lord  Rhondda  and  his  Food  Committees  prepared 
to  feed  the  whole  population  in  that  case?     Have  any 
plans  for  that   purpose  been  made?     We  very    much 
doubt   it  ;  and  even  if  there   are   such   plans,  we  very 
much  doubt  if  they  could  be  put  into  operation  with  the 
rapidity  that  would  be  necessary  to  prevent  a  disaster. 
We  wonder  whether  the  commonplace  facts  of  exist- 
ence ever  penetrate  to  a  Government  Department.     No 
'doubt  there  is  some  really  selfish  and  unpatriotic  hoard- 
ing by   a  few  greedy   people   in   every   class,    though 
whether  it  is  worth  while  overturning  the  liberties  of  the 
nation  to  punish  them  may  be  doubted  ;  but  plenty  of 
people  must  have  stocks,  now  liable  to  be  confiscated 
as  hoards,  which  have  been  acquired  very  differently. 
How  many  people  are  still  struggling  to  consume  the 
superfluous  supplies  they  obtained  when  it  was  neces- 
sary to  buy  los.  worth  of  groceries  to  get  a  pound  of 
sugar?       How   many    people   bought    stocks    in     self- 
defence  when  every  week  saw  the  prices  of  the  most 
ordinary  commodities   jump     upwards    by    leaps    and 
bounds?     How  many  people  now  find  themselves  with 
surpluses  in  the  pantry  because  they  have  loyally  kept 
the   voluntary   rations?     To   penalise   people    for   their 
patriotism  is  surely  an  extraordinarj-  way  of  encourag- 
ing cordial  support  of  the   Food  Controllers'   regula- 
tions ! 

And  are  there  not  enough  causes  of  daily  friction  and 
irritation  for  everyone  already  without  forcing  every 
woman  to  buy  all  the  provisions  she  needs  for  her  house- 
hold in  quarter  and  half-pounds  !  As  if  the  shops  were 
not  already  crowded,  and  shopping  a  burden  almost 
past  endurance  !  Cannot  Lord  Rhondda  rise  above  this 
foolish  idea  of  producing  an  impossible  equality?  For 
that  is  what  really  lies  at  the  bottom  of  this  extrava- 
gantly virulent  campaign.  It  is,  in  fact,  Bolshevik. 
When  the  food  queues  began,  great  indignation  was 
constantly  expressed  that  only  working  women  stood  in 
them,  and  not  the  "  well-to-do."  As  a  matter  of  fact, 
the  well-to-do  avoided  the  queues  in  many  cases  by  the 


February   i6,    1918. 


Zbc  investors'  IReview, 


169 


simple  method — open  to  all — of  doing  without  the 
particular  article.  But  when  during-  the  recent  pro- 
longed shortage  of  butter  and  margarine  well-dressed 
women  were  compelled  at  last  to  stand  in  the  queues, 
we  are  told  that  in  many  places  they  had  such  an  un- 
friendly reception  from  the  working  women  that  they  were 
driven  to  lea\e  empty-handed.  Common  sense  should 
have  told  people  without  this  practical  illustration  that 
to  lengthen  a  queue  in  any  way  is  to  make  it  worse  for 
e\'erybody  ;  and  that  harmony  between  the  classes  is  not 
likely  to  be  strengthened  when  the  last  half-pound  of 
niag-arine  is  dealt  out  to  a  woman  in  furs  just  because 
she  happens  to  stand  in  front  of  a  woman  in  apron  and 
shawl.     Yet  that  is  equality- — in  a  queue. 

In  this  matter  of  food  hoarding  the  best  sort  of 
equality  would  be  that  every  household  should  have  at 
least  a  month's,  or  even  two  months'  supply  in  stock 
for  all  reasonable  needs  in  case  of  acute  shortage.  That 
may  not  be  universally  possible,  though  considering  the 
high  wages  earned  by  the  large  mass  of  the  population 
it  might  be  pretty  general,  but  what  advantage  is  there 
in  bringing  everyone  down  to  the  level  of  those  who, 
unable  to  make  any  provision  for  the  future,  must  be 
looked  after  by  the  authorities  at  any  crisis?  Does 
Lord  Rhondda  fancy  the  problem  of  soothing  and  pro- 
viding for  the  indignant  mothers  of  hungry  children  will 
be  made  easier  for  him  if  he  has  all  the  mothers  and 
children  of  the  nation  on  his  hands  simultaneously  in- 
stead of  only  a  minority? 

But  every  Government  Department  is  possessed  with 
a  passion  for  uniformity.  ,'\fter  all,  it  saves  so  much 
thought,  and  the  official  mind  hates  thought.  While  the 
war  lasts  we  are  all  to  drink  one  tea,  in  which  ap- 
parently the  finest  China  and  the  strongest  Darjeeling 
are  to  be  unhappilv  blended — it  was  unnecessary  for 
the  newspapers  to  inform  us  after  this  that  Lord 
Rhondda  does  not  drink  tea — though  why,  so  far  as 
supplies  hold  out,  we  should'  not  drink  what  we  prefer, 
only  the  Food  Ministry  can  tell.  The  only  consolation 
in  this  orgy  of  officialism  is  that  with  each  new  regula- 
tion the  fall  of  the  new  mushroom  bureaucracy  at  the 
close  of  the  war  becomes  more  assured. 


Boot  and  Leather  Manufacturing 
Companies'  Profits. 

Few  of  our  "  war  industries  "  had  more  difficulties  to 
contend  with  during  191 7  than  the  boot  and  shoe  trade, 
but  in  spite  of  shortage  and  dearness  of  raw  materials, 
and  multifarious  State-imposed  restrictions,  the 
majority  of  the  joint  stock  enterprises  connected  with 
the  trade  have  been  able  to  make  much  larger  profits, 
and  in  several  instances  to  disburse  larger  sums  in 
dividend  to  the  shareholders.  This  is  seen  clearly  from 
the  following;  statement  of  results  of  eleven  of  the  more 
important  undertakings  : — 


Company. 


(a)  Angus,  George,  and 

Co.,  Ltd 

(a)  Bostock,  Edwin,  and 

Co.,  Ltd 

(6)  Dick,  R.  and  J.,  Ltd. 
(rt)  Freeman,  Hardy  and 

Willis,  Ltd 

(a)  Gandy     Belt     Man. 

Co.,  Ltd 

(c)  Handford,    Greatrex 

and  Co.,  Ltd 

(a)  Lennards,  Ltd 

(a)  Loveys,  John,  and 

Co.,  Ltd 

(a)  Public  Benefit  Boot 

Co.,  Ltd 

(a)  Sears,    J.,    and    Co. 

( True    Form    Boot 

Co),  Ltd 

(a)  Stead  and  Simpson, 

Ltd 


Profits. 


74,650 

36,80 
137,900 

128  700 

(<i)32,36o 

11,41 
39  860 

It, 137 

26,900 

77,59- 
83.040 


19 1 6. 


64,58 

35,100 
93,635 

118,0:0 

(d)23,750 

6,45c 
38,470 

843 

33,3C0 


77,02;      17J 
76,650      10 


Dividends. 


1917. 


'7J 

23 
Ui 

'7i 

(«) 


1916, 


Average 
of  1  ast 

Three 
Pre-war 

■years. 


% 
15 


174 

25 

5 


■74 


ro  83 

.16 
30 


4.0 
8.33 

333 
nil 

'/) 11.25 
3.66 


Carried 
Forward. 


B 


61,900 

12  OOD 

12,445 
67,700 

4,430 

1,142 
27,260 

4.085 

14,60a 

25.407 
55.975 


+  1,295 

+    3  000 

+       8^0 

+  10,410 

-  50 

-  481 
+    7,l!o 

+       335 

-f    3.<"0O 

■I-    7,730 
+  20.qqO 


(a)  Year  ended  D  c.  31.  1(1)  Year  ended  Aug.  31.  (c)  Year  ended  June  30. 
Ui)  Accounts  for  1916  and  1915.  (e)  In  respect  of  1917  an  interim  dividend  of  10  % 
as  compared  with  8  %  has  Leen  declared.    (/}  Two  years'  average. 

The  only  two  exceptions  to  the  unbroken  records  of 
prosperity  are  those  of  the  Public  Benefit  Boot  Co.  and 
Handford,  Greatrex  and  Co.  In  the  case  of  the  Public 
Benefit  Boot  Co.  the  datum  line  for  excess  profits  tax 


is  very  low,  and  the  expansion  in  revenue  in  191 7  was 
not  sufficient  to  offset  the  increase  in  the  duty.  Hand- 
ford, Greatrex's  drop  to  5  per  cent,  in  1916  was  due  to 
an  exceptional  circumstance.  The  year  1917,  it  will  be 
observed,  witnessed  a  substantial  recovery. 

The  accounts  of  the  Gandy  Belt  Manufacturing  Co. 
are  not  due  for  publication  till  March,  but  the  directors 
have  recently  recommended  that  ,1^37,500  of  the  reserve 
fund  be  capitalised,  and  that  one  new  ordinary  share  be 
allotted  for  every  two  similar  shares  held.  It  is  also 
proposed  that  the  dividends  on  the  preference  shares  be 
raised  from  5J  to  6  per  cent,  per  annum.  The  capital 
of  the  company  will  be  increased  to  ;^2c>o,ooo,  of  which 
;£'75,ooo  in  preference  and  ;£^i  12,500  in  ordinary  shares 
will  have  been  paid  up. 

Most  of  the  concerns  have  put  by  substantial  sums 
to  reserve,  and  generally  strengthened  their  financial 
position.  And  this  is  as  it  should  be,  for  the  future  is 
uncertain.  For  although  leather  goods  and  footwear 
continue  in  strong  demand,  while  there  is  a  prospect 
of  substantial  orders  for  the  boot  equipment  of  the 
American  Army  in  Europe,  the  cost  of  production  con- 
tinues to  increa.se,  and  the  maintenance  of  the  present 
margin  of  profit  seems  far  from  assured.  Moreover, 
there  is  the  position  when  the  war  ends  to  consider. 
Demobilisation  will  probably  bring  substantial  orders 
for  civilian  boots,  but  it  is  exceedingly  doubtful  if  any- 
thing like  the  quantity  at  present  being  manufactured 
will  be  recuired.  Then  there  is  the  all-important  factor 
of  price,  which  is  not  likely  to  leave  anything  approach- 
ing an  extravagant  margin  of  profit. 


By-the-Way  War  Notes. 

From  the  manner  in  which  German  news  distributors 
have  been  proclaiming  the  imminence  of  an  over- 
whelming ofl'ensive  against  the  Allied  lines  in  the  West, 
we  should  be  inclined  to  infer  that  the  cunning  Prussians 
really  mean  to  attack  somewhere  else.  It  is  not  in 
accordance  with  their  usual  tactics  to  proclaim  before- 
hand what  they  are  about  to  do.  Advertisements  of  the 
kind  must  increase  the  difficulties  and  mar  the  success 
of  the  attack.  Against  this  risk,  however,  we  have  to 
l)Ut  the  increasing  necessities  within  Germany.  Hunger 
there  and  in  ."Vustria  is  on  the  increase,  is  probably 
greater  to-day  than  we  have  any  just  conception  of,  and 
talk  about  an  irresistible  offensive  in  the  West,  and 
prophecies  that  Calais  is  sure  this  time  to  be  taken  and 
held,  the  whole  garnished  with  abundant  threats  of  what 


THE 


LONDON  CITY  &  MIDLAND 
BANK  LIMITED. 

Head  Office  !  5,  THREADNEEDLE  ST.,  LONDON,  E.C.2. 
Foreign  Branch  Office  !   8,  Finch  Lane,  London,  E.C.  3.. 


Subscribed  Capital  - 
Paid-up  Capital 
Reserve  Fund  - 


£24,906,432 
5,188,840 
4,342,826 


Deposits   -        -        -        -      £220,551,768 
Cash  in  hand  and  at  Bank  of 

England  -        -  44,110,353 

Money  at  Call  and  Short  Notice    31 ,003,560 
Bills  of  Exchange  -    35,052,991 

OVER  1,000  OFFICES  in  the  UNITED  KINGDOM. 

This  Bank  is  tho  Propriotor  of  tlie 
Belfast  Banlfing  Company,  Limited,  and 
will  faciJtate  transactions  between  this 
Country  r  nd  the  North  of  Ireland. 

For  Particulars  apply  at  Head  Office. 


I70 


Zbc  investors'  IReview, 


February  i6,   1918. 


is  to  follow  our  discomfiture,  may  have  been  prompted, 
have  doubtless  been  prompted,  in  no  small  measure  by 
anxiety  regfarding  affairs  at  home  and  the  desire  to  keep 
up  the  people's  spirits.  The  Prussian  tyrant  may  even 
begin  to  fear  that  his  German  slaves  may  one  day  revolt. 

Probably  an  offensive  on  the  West  is  being  organised 
by  the  Germans  with  the  utmost  diligence,  and  with 
equal  diligence  the  French  and  ourselves,  with  the  in- 
creasing help  of  the  Americans,  are  getting  ready  to 
encounter  and  overcome  it.  We  believe  we  need  have 
no  fear  of  the  result  of  the  shock ;  the  pity  only  is  that 
while  we  diligently  prepare  and  wait  expectant  so  much 
intrigue  and  such  squabbling  and  Press  mud-throwing 
should  be  going  on  among  politicians  at  home.  At  the 
front,  happily,  it  is  altogether  different.  Not  only  arc 
we  there  gathering  and  consolidating  our  strength  in 
men  and  munitions,  but  the  enemy  is  being  daily  and 
nightly  bombarded,  raided,  harassed,  and  spied  upon 
from  the  air  and  worried  in  his  dug-outs  and  trenches. 
His  strength  is  being  tried  in  this  manner  with  an 
assiduity  which  must  tend  to  exhaust  him  and  to 
derange  his  nerves.  And  at  their  best  the  German 
armies  are  not  what  they  were  before  their  destruction 
in  the  three  and  a-half  years  of  fighting. 

The  most  forlorn  spot  in  the  long  war  line  is  Rumania, 
and  while  we  admire  the  fine  courage  with  which  her 
Ministers  and  King  throw  back  the  insolent  German 
ultimatum  and  refuse  to  make  peace  at  the  order  of  the 
bullies,  we  cannot  but  be  anxious  about  the  immediate 
consequences.  Rumania  is  isolated.  We  can  give  her 
no  effective  help,  and  Russia  has  failed  her.  Had  we 
been  able  to  force  the  Dardanelles — well,  we  need  not 
hark  back  on  that  for  our  discouragement,  it  is  better 
to  look  at  the  problem  from  the  enemy  point  of  view, 
.and  to  ask  what  he  can  gain  by  forcing  Rumania  to 
.submit.  Is  there  any  substantial  advantage  to  come 
from  such  a  triumph?  Not  while  we  control  the  ocean 
routes,  not  while  we  can  bottle  up  the  mouth  of  the  Dar- 
danelles, as  was  illustrated  in  the  recent  Goehen-Breslau 
incident,  not  either  while  Ru.ssia  remains  a  mystery  to 
the  enemy.  Wc  begin  to  suspect  Mr.  Trotsky  to  be  an 
exceedingly  astute  diplomatist.  He  will  obviously  have 
to  be  attended  to  by  the  .'\llies,  for  his  "  down  arms, 
Russians  !  "  coupled  with  the  refusal  to  conclude  a 
peace  with  Germany,  might  turn  out  to  be  a  master- 
stroke of  policy.  We  must  wait  and  see.  Present  in- 
dications are  that  the  Berlin  master  brigands  are  puzzled 
and  a  bit  alarmed.  They  know  not  what  to  make  of  it, 
and  may  presently  find  that  they  have  denuded  their 
Eastern  front  of  too  many  troops  to  be  safe  in  their 
vaunted  conquests.  It  looks,  too,  as  if  Mackensen  mav 
be  in  no  position  to  overrun  Moldavia  and  wipe 
Rumania  out.  All  the  more  reason  to  fire  off  salvos 
and  shout  and  wave  flags  in  anticipatory  jubilation  over 
the  "  triumph  "  just  aibout  to  be  won  in  the  West. 

We  must  not  forget  that  by  spring  Greece  will  have 
a  large,  well-equipped,  and  disciplined  army  to  take  its 
place  in  the  Macedonian  conflict,  or  that  Bulgaria,  what- 
ever facade  of  strength  may  be  put  up  bv  her  with 
Germany's  help,  is  in  a  state  of  exhaustion  and  para- 
lysis.     And  Turkey,  too,  that  empire  of  nomads,  great 


Ally  of  the  pious  Lutheran -Wodan  Kaiser,  can  by  now 
be  in  no  position  to  wage  any  effective  war  at  any 
IK>int,  and  the  condition  of  Austria  is  as  near  a.s  may  be 
one  of  hopeless  misery,  so  that  on  the  Italian  front  even 
the  Pru.ssians  cannoi  hope  to  organise  any  effective 
assault  when  spring  comes.  What  more  is  required  of 
us,  then,  except  steadfastness  and  patience,  the  avoid- 
ance of  wrangling  and  diligence  in  labour  and  self- 
denial?  Our  Army  and  Navy,  helped  by  their  com- 
rades of  France,  Italy,  America,  Belgium,  Serbia,  and 
Greece,  may  be  relied  on  to  bring  us  the  peace  desired. 

Last  week's  tale  of  sinkings  of  merchant  ves- 
sels by  German  submarines  is  again  not 
pleasant  to  contemplate,  13  merchant  vessels 
of  1 ,600  tons  gross  and  over  having  been 
returned  as  sunk,  together  with  six  of  less  than 
that  tonnage,  and  three  fishing  vessels.  Thus  the  total 
number  of  vessels  of  all  sizes  returned  is  22,  and,  in 
addition  1 1  were  unsuccessfully  attacked.  The.se 
figures,  however,  require  adjustment,  two  of  the  13 
large  vessels  returned  having  been  actually  sunk  in  the 
previous  week,  and  one  of  the  1 1  unsuccessfully  at- 
tacked is  also  attributable  to  that  week.  Thus, 
making  the  requisite  adjustments,  the  real  sinkings  of 
large  ships  in  the  week  ended  February  2  were  12,  and 
of  small  ships  five,  or  17  in  all,  without  counting  fishing 
vessels,  and  last  week  the  number  of  large  ships  sunk 
was  II,  and  of  small  six.  For  each  of  these  two  weeks, 
therefore,  the  total  of  the  sinkings  appears  to  have  been 
17  ;  that  is,  two  higher  than  in  the  week  ended  January 
26,  10  higher  than  in  the  week  ended  January  19  and 
12  above  the  total  for  the  week  ended  January  12.  No 
real  progress  would  seem  to  have  been  made  in  destroy- 
ing these  pirates  of  the  sea.  As  Sir  Eric  Geddes  said, 
wc  only  "hold"  the  enemy,  he  is  not  yet  subdued. 
U-boat  energies,  indeed,  seem  to  be  developing  on  other 
seas  than  those  surrounding  our  islands,  for  last  week 
four  Italian  steamers  of  over  1,500  tons  were  sunk  and 
three  small  vessels  of  under  100  tons,  besides  one  sailing 
vessel  damaged.  As  the  days  get  longer,  however,  our 
power  will  increase,  and  the  opportunities  of  the  stealthy 
submarine  get  circumscribed,  but  we  cannot  be  sure  that 
we  shall  attain  complete  triumph  over  them,  even  by 
Lord  Jellicoe's  date.  At  the  same  time,  when  contrasted 
with  the  feats  of  assassination  perpetrated  at  the  be- 
ginning of  the  unrestrained  submarin*  fury  just  a  year 
ago,  it  is  obvious  that  great  progress  had  been  made, 
and  that  progress  implies  an  enormous  waste  of  German 
submarines,  with  a  proportionate  strain  on  German 
workmen  engaged  in  keeping  up  the  supply,  not  to 
speak  of  the  crews  lost  with  the  boats  sunk. 

Were  the  Prussians  to  reach  the  victory  they  still 
brag  about  as  "  coming  "  and  "  cert.ain  " — which  they 
nowise  can — they  would  find  it  "  hollow,  hollow  all 
delight,"  barren  and  a  curse. 


BOOKS    RECEIVED. 


Banking    and    Current  \ 
With   an   introduction   by   F. 
don  :   Hutterworth  and  Co. — 
revised  up  to  date. 


»y    Ernest    SyVes,    B.A.    (Oxon.). 

E.   Steele.     Fourth  edition.     Lon- 

An  excellent  handbook,  judiciously 


TD. 


STANDARD  BANK  OF  SOUTH  AFRICA,  L 

B.„W.t„ll.eGov.rnm.ntof  the  Unioa  of  South  Afrlc.  in  C.p.  Pro,i„«;    I.  Ih.  Imprial  Government  in  Sooth  Afric.  .nd  to  the  Admini.lr.tion 

Subscribed  Capital  of  Rhod„i, 

Paid-up  Capital... 


£6,194,100 
£1,548,525 

_Board      of 


£2,000,000 
£4,645,575 


Reserve  Fund     ... 
Uncalled  Capital 

^^D^?!E"M^.°BVB'^o"uVrc°S^i''rdMG      I     l^^M^^^'k'^^^^'^^^^'''-^'-     I      Rx.Hox.  LORD  SYDENHAM.  G.C.S.i,, 
ROBERT  E.D.CK.NSON.'^k*;,^'-''*^-^-^-      |     I1lt^^^^l^\^^:\,^,  \      H^L^' J{;%R?V%  g^^.^' 

H.J!'Yfr^F/"*'^'   '**  OlEMEMTS  LANE,  LOMBARD  STREET,  LONDON,  E.C.  4. 

.o^^irJ^^.^^llP^^'r*®'  WALL  STREET,    Over  250  Branches  and  Agencie.  in  South  and  East  Africa. 


ransacted  with 


EVERY  DESCRIPTION  OF  BANKING  BUSINESS  ir 

Nya^Xnd^Ta'srAfHA'H; "?"?•= '  7'^%  """J"'  T^-vaal,  Rhodesia, 
«yas,iiand,  tast  Africa  Protectorate,  Uganda,  Zan/ihar  PortnuiiasB 

CURRFNT  ArrniiNTQ  ^'"""  '"  V""^  \°'^  '""^  «'^ewhere.  *  ' 

DEPOSIT^  RFCrVvJiff  r  fi""^"^''  ""i  "■*  '""^'  '«™^- 

BILLS  NEGOTtATED  AND  COLLECTED. 

TH,  officers  of  the  Bank  a,.  <,^..„rf  „.,  t„  Ji,,,„,,  ,^,  „^„,^,„-„,„  „,„„„  „/ U^^^^^^H 


MAIL  AND  TELEGRAPHIC  REMITTANCES  mae. 

LETTERS  OF  CREDIT  AND  DRAFTS  granted  on  the  branches  »nd 

Af-rncies  of  the  Hank. 
THE  BANK  ISSUES  CIRCULAR  LETTERS  OF  CREDIT  arailable 

in  all  parts  of  the  world. 
COMMERCIAL  LETTERS  OF  CREDIT  ISSUED. 
PURCHASE  AND  SALE  OF  STOCKS  AND  SHARES  effected. 
DIVIDENDS,  ANNUITIES.  Ac.  received. 
EXECUTOR  AND  TRUSTEE  Business  undertaken. 

FR.^NCIS  SHIPTON,  London  Manager. 


February  i6,  1918. 


Zbe  Jnvestors'  IReview. 


171 


BANK    RATE    NOTICES. 


BANK    RATE    NOTICES. 


THE    LONDON    CITY    AND    MIDLAND    BANK, 
LIMITED. 


NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposits  at  seven  days'  call  at  the  Head 
Office  and  London  Branches  will  be  THREE  per  Cent,  until 
further  notice. 

J.  M.  MADDERS,   ) 
S.   B.  MURRAY,       I        J°'"'  , 
F    HYDE  I      General 

e!  W.  WOOLLEY,  '   Managers. 

5,  Threadneedle  Street,  E.G.  2, 
14th  February,  1918. 

BRITISH  LINEN  BANK  (LONDON  OFFICE). 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF 
INTEREST  allowed  on  Deposit  Accounts  at  this  Office  will  be 
THREE  per  Cent,  until  further  notice. 

JAMES  LITTLE,  Manager. 
Threadneedle  Street,  London,  E.C., 
14th  February,    1918. 


THE    COMMERCIAL    BANK    OF    SCOTLAND, 
LIMITED    (LONDON    OFFICE). 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposits  at  this  Office  will  be  THREE  per 
Cent,  until  further  notice  by  advertisement. 

GEO.  S.  COUTTS,  Manager. 
No.  62,  Lombard  Street,  London,  E.G., 
14th  February,  1918. 

NATIONAL   PROVINCIAL    BANK   OF    ENGLAND, 
LIMITED. 


NOTICE     IS      HEREBY     GIVEN     that     the     RATE     OF 

INTEREST  allowed  by  this  Bank  at  its  Head  Office,  Bishopsgate, 

and  London  Branches  is  this  day   REDUCED  to  THREE  per 

Cent,  for  money  placed  on  Deposit  at  seven  days'  notice. 

D.  J.  H.  CUNNICK,  ^ 

F.  ELEY, 

A.  G.  HOPEWELL  , 
No.  15,  Bishopsgate,  London,  E.C.  2, 
14th  February,  1918. 


Joint  Genera:l 
Managers. 


THE     NATIONAL     BANK    OF 
LIMITED. 

Incorporated  by  Royal  Charter  and  Act  of  Parliament. 
London  Office:  Nicholas  Lane,  liombard  Street 


SCOTLAND,  ^^g    UNION    BANK    OF    SCOTLAND,   LIMITED. 


NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposits  at  this  Office  will  be  THREE 
per  Cent,  per  annum  for  money  at  seven  days'  notice. 

J.  FERGUSON,  Manager. 

14th  February,  1918. 

THE  CAPITAL  AND  COUNTIES  BANK,  LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  at  the  Head  Office  and 
Metropolitan  Branches  the  RATE  OF  INTEREST  allowed  on 
Deposits  repayable  on  seven  days'  notice  is  this  day  REDUCED 
to  THREE  per  Cent,  per  annum. 

G.  A.  HARVEY,   1  Joint 

E.  D.  VAISEY,      I   General  Managers. 
No.  39,  Threadneedle  Street,  E.G., 
14th  February,  1918. 

LLOYDS    BANK,    LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF 
INTEREST  allowed  by  this  Bank  upon  Deposits  at  its  Metro- 
politan Branches  is  REDUCED  to  THREE  per  Cent,  for 
money  at  seven  days'  notice. 

HENRY  BELL,  General  Manager. 
No.  71,  Lombard  Street, 
14th  February,  1918. 

THE  LONDON  JOINT  STOCK  BANK,  LIMITED. 


NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF 
INTEREST  allowed  at  the  Head  Office  and  London  Branches  of 
this  Bank  on  Deposits  subject  to  seven  davs'  notice  of  withdrawal 
is  this  day  REDUCED  to  THREE  per  Cent,  per  annum. 

J.  F.  DARLING,  General  Manager. 
5,  Princes  Street,  Mansion  House,  E.C.  2. 
14th  February,  1918. 

PARR'S    BANK,    LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  by  this  Bank  at  the  Head  Office  and  Metropolitan 
Branches  on  Deposit  at  seven  days'  notice  is  THREE  per  Cent, 
per  annum  until  further  notice. 

JOHN  STEW.\RT,  General  Manager. 
Bartholomew  Lane,  E.G., 
14th  February,    1918. 

BANK     OF     SCOTLAND     (LONDON     OFFICE), 


NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposit  Accounts  will  be  THREE  per 
Cent,  until  further  notice  by  advertisement. 

WILLIAM   SMILES,  Manager. 
No.  30,  Bishopsgate,  E.G., 
14th  February,  1918. 

WILLIAMS   DEACON'S   BANK,   LIMITED. 


NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposits  with  the  Union  Bank  of  Scotland, 
Limited,  at  this  Office  will  be  THREE  per  Gent,  per  annum  from 
this  day  until  further  notice. 

GEO.  J.  SCOTT,  Manager. 

London  Office,  62,  Cornhill,  E.G.. 
14th  February,  1918. 

THE    UNION    OF     LONDON     &    SMITHS    BANK, 
LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  on  Deposits  at  the  Head  Office  and  Metropolitan 
Branches,  repayable  on  seven  days'  notice,  will  be  THREE 
per  Cent,  per  annum  from  this  date  until  further  notice, 
which  will  be  e;iven  by  advertisement  only. 

H.  H.  HART,  General  Manager  (Town  and  Foreign). 
L.  E.  THOMAS,  General  Manager  (Country). 
No.  2,  Princes  Street,  E.G., 
14th  February,  1918. 


NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  by  this  Bank  on  Depoj:i;s  at  seven  days'  notice  at  this 
Office  and  Metropolitan  Brancnes  will  be  THREE  per  Gent, 
per  annum  from  this  date  until  further  notice. 

JOHN  J.  MEAGHER,  Manager. 
20,  Birchin  Lane,  E.C, 
14th  February,  1918. 


LONDON  COUNTY  AND  WESTMINSTER   BANK, 
LIMITED. 


NOTICE  IS  HEREBY  GIVEN  that  at  the  Head  Office  and 
Metropolitan  Branches  the  INTEREST  allowed  to  Depositors  is 
this  day  reduced  to  the  following  rates,  viz.  : — 

On  Deposits  subject  to  seven  days'  notice  THREE  per  Gent., 
and  on  Deposits  at  call  TWO  AND  A  HALF  per  Cent., 
until  further  notice. 

F.  J    BARTHORPE,  Head  Office  Manager. 
No.  41,  Lothbury,  E.G., 
14th  February,   1918. 


THE    CLYDESDALE    BANK,    LIMITED 

(LONDON  OFFICE). 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF 
INTEREST  allowed  on  Deposits  at  this  Office  jwill  be  THREE 
per  Gent,  per  annum  until  further  notice. 

DAVID  YOUNG,  Manager. 
30,  Lombard  Street,  E.G., 
14th  February,  1918. 


LONDON    PROVINCIAL  AND   SOUTH  WESTERN 
BANK,  LIMITED. 

HEAD  OFFICE:    170,  Fenchurch  Street,  E.G.  3. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  OF  INTER- 
EST allowed  at  the  Head  Office  and  Metropolitan  Branches  of 
this     Bank     on    Deposits     repayable   at    seven    days'    notice     is 
THIS  DAY  REDUCED    to    THREE     per  Gent,    per   annum. 
HERBERT  HAMBLING,  General  Manager. 
14th  February,  1918. 


MARTIN'S     BANK,     LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  RATE  '  OF 
INTEREST  on  Deposits  with  the  Head  Office  of  this  Bank, 
subject  to  seven  days'  notice,  will  be  THREE  per  Cent,  per 
annum  from  this  date  until  further  notice. 

G.  BROMLEY'  MARTIN,  Managing  Director. 

No.  68,  Lombard  Street,  E.G., 
14th  Februiry,  1918. 


172 


XTbe  Jnvestorg'  TReview. 


February  16,   1918. 


In  these  days,  when  wide  circulation  of  papers 
through  the  post  is  impossible,  we  rely  on  news- 
paper advertisement  to  remind  our  friends  that  we 
look  to  them  to  do  what  they  can  to  make  the 
merits  of  the  Society  known  in  their  own  circles. 

The  Clerical's  strong  2i  per  cent.  Valuation, 
unbroken  lionus  record,  and  attractive  rates  of 
premium,  carry  great  weight  with  everyone  who 
is  selecting  an  office  in  which  to  assure  his  life 
in  these  hazardous  times.  —  A.  D.  Besant, 
General  Manager  and  Actuary,  Clerical,  Medical 

and  General  Life  Assurance  Society,    15,   St. 

James's  Square,  S.W.  1,  London. 


TLbc  investors'  IReview. 

Money    and   Credit    Notes. 

Bank  Rate  5  per  Cent.   (Reduced  from  5I  percent,  on 
Thursday,  April  5,  1917.) 

Norfolk  House,  Friday  Evening. 

Up  to  Thursday  morning  the  Money  market  gener- 
ally betrayed  its  subjection  to  the  tax-collector.  Call 
money  sometimes  cost  4  per  cent.,  and  notice  money 
was  throoig'hjout  the  week  3J  per  cent.  Discount  rates, 
too,  were  firm,  with  a  reluctance  shown  by  buyers  at 
4  per  cent,  and  upwards  for  remitted  paper.  Then  on 
Thursday,  as  noted  below,  the  Government  announced 
that  it  would  reduce  its  rate  on  Treasury  bills  to  3^ 
per  cent.,  and  the  market  obeyed  orders.  Open  market 
discount  rates  came  down  by  almost  ^  per  cent,  to 
3f,  as  against  4  to  4^-  per  cent,  for  three  months' 
remitted  bills.  Money  was  less  pliable,  being  nowise 
more  pJentiful  than  before,  but  it  also  may  be  pushed 
down  in  spite  of  the  tax-collecting  pressure,  so  all- 
powerful  is  the  Government  over  the  market  in  the 
absence  of  any  great  volume  of  independent  business 
competing  with  it. 

It  is  useless  to  delay  over  the  Bank  return,  for  it 
gives  no  clue  to  the  movement  in  rates  of  interest,  for 
it  cannot  be  said  to  have  anything  to  do  with  it.  The 
largest  change  is  a  decrease  of  ;^2, 130,000  in  the 
public  deposits,  the  credit  thtus  going  to  increase  the 
other  deposits  by  ;£,'76i,oco,  and  to  reduce  the  other 
seourities  by  ;^i, 227,000.  Government  securities  also 
shrunk  ;^54o,ooo,  the  reserve  having  been  fortified  by 
;^"404,ooo,  thanks  to  the  receipt  of  ;^334,ooo  in  gold 
and  a  return  of  ;^7o,ooo  in  notes  from  the  circulation. 
The  increase  in  the  reserve  and  decrease  of  liabilities 
raised  the  proportcon  of  the  one  to  the  other  by  ^  to 
19  per  cent. 

On  Thursday  the  Treasury  decided  to  reduce  the  rate 
for  three  and  six  months'  Treasury  bills  from  4 — to 
which  it  was  reduced  on  December  27  last — to  3J  per 
cent.  At  the  same  time,  the  Bank  of  En'giland  lowered 
its  rate  for  clearing  bank  balances  lent  to  it  on  three 
days'  notice  to  3  per  cent.,  and  the  clearing  banks  fol- 
lowed this  by  reducing  their  deposit  rates  by  J  per 
cent,  to  3  per  cent.,  while  the  discount  houses  also 
came  into  line  by  reducing  their  rates  to  3  per  cent, 
for  money  at  call  and  to  3J  per  cent,  for  money  at 
notice.  Thus  all  rates  were  reduced  by  ^  i>er  cent., 
except  tihe  speoi;il  rate  allowed  by  the  Bank  of  Eng-land 
on  approved  foreign  balances,  which  remains  at  4^ 
per  cent.  Tlie  pleasing  feature  of  this  simultaneous 
readjustment  of  monetary  oonditions  to  meet  this  new 
step  taken  by  the  Treasury  is  the  unity  of  policy  which 
it  reveals  as  existing  between  the  Government  and  the 
market ;  and  this  active  readiness  on  the  part  of  the 
banks  and  the  market  to  fall  in  with  the  wishes  of  the 
Treasury  certainly  deserves  recognition.  The  object 
of  this  lowering  of  Treasury  bill  rates  is  not  so  much 
to  cheapen  Governinent  borrowing  as  to  stimulate  the 
process  of  reducing  the  amount  of  Treasury  bills  out- 
standing,  and  the   policy  of  reducing   rates  to   effect 


that  object  has  been  adopted  in  preference  to  suspend- 
ing sales  of  the  biJls.  The  reduction  in  deposit  rates 
will  also  assist  the  process  of  funding  Treasury  bills,, 
Dhough  its  effect  is  more  likely  to  be  reflected  in  still 
larger  purchases  of  National  War  Bonds  by  those  who 
have  money  lying  at  the  banks.  The  amount  of  Trea- 
sury bills  held  by  the  Money  market  is  probably  not 
much  more  than  50  per  cent,  of  the  total,  so  that  the 
private  holding  of  Treasury  bills  must  run  into  several 
hundreds  of  millions.  It  is  these  holdings  which  the 
Treasury  desires  to  get  funded  into  War  Bonds. 

The  removal  of  the  embargo  on  Dutch  commercial 
cables  has  enabled  exchange  operations  with  Holland 
to  be  resumed  on  a  normal  basis,  and  as  a  result  the 
quotation  for  florins  has  moved  8  points  in  our  favour 
to  10.82J  fl.  to  the  pound.  The  announcement  of  the 
treaty  with  Ukraine  has  been  followed  by  a  further 
slight  rise  in  the  Scandinavian  exchanges,  Stockholm 
Ijeing  quoted  at  14.30  kr.,  Christiania  at  14.89  kr.,  and 
Copenhagen  at  15. 52 J  kr.  to  the  pound.  The  peseta 
has  risen  further  in  value  owing  to  a  reported  hitch  in 
the  negotiations  for  a  Spanish  credit  for  the  Allies,  and 
the  Madrid  exchange  is  quoted  at  19.62J  pesetas  to  the 
pound.  The  Chilean  exchange  has  risen  rather  sharply 
to  i3|d. 

.'Vrrangements  are  being  made  for  the  issue  in  France 
of  a  loan  of  200  million  francs  to  Morocco.  The  rate  of 
interest  will  be  5  per  cent.,  and  the  price  of  issue  about 
89  per  cent.  The  loan,  which  will  be  guaranteed  by 
the  French  Government,  will  probably  be  issued  to- 
wards the  end  of  this  month. 

Silver. 
Tile  silver  market  has  been  quite  uninteresting 
throughout  the  week  and  the  price  of  bars  remains  at 
42jd.  per  oz.  Holidays  have  stopped  business  ia- 
Shanghai^  from  whence  no  rate  of  exchange  has  come 
for  some  days,  and  Mocatta's  circular  says  this  tended 
to  give  the  market  here  "  an  uninteresting  and  flabby 
tone."  They  do  not  look  for  any  immediate  change 
at  present.  In  Montagu's  circular  we  find  some  in- 
teresting statements  with  regard  to  the  Indian  reserve 
and  its  note  circulation.  On  many  occasions  the  wish 
has  been  expressed  that  a  substantial  portion  of  the 
gold  reserve  held  against  the  Indian  paper  money 
should  be  in  India  itself,  not  in  London,  and  this  wish- 
is  now  apparently  being  gratified.  The  total  gold  held 
m  India  on  the  7th  instant  was  more  than  double  that 
held  at  August  31  last,  that  is  to  say,  ;^i8.37o,ooa 
against  ;^8,o8o,ooo.  Practically  the  amounts  respec- 
tively of  silver  and  gold  held  within  and  outside  India 
have  changed  places  within  these  two  dates,  and  the 
amount  of  silver  in  reserve  has  been  reduced  to  a  lower 
figure  than  any  recorded  silice  May  7  last  year,  which 
was  in  its  turn  the  lowest  shown  since  November  18, 
1913,  when  the  note  issue  was  only  6,475  l^cs  of 
rupees,  whereas  it  is  now  10,484  lacs. 


Applications  for  the  Rs.  60,00,000  Indian  Council  drafts, 
offered  on  Wednesday  amounted  to  Rs.  2,21,55,000.  Of  these 
Ks.  59,59,000  were  allotted  in  deferred  transfers,  and 
Rs.  41,000  in  immediate  transfers.  Tenders  for  bills  and  de- 
ferred transfers  at  is.  4  29-32d.  and  for  immediate  transfer* 
at  IS.  5d.  received  aibout  27  per  cent. 


A  Renter  message  from  Zurich  states  that,  after  an  interval 
of  nearly  three  and  a-half  years,  the  Austro-Hungarian  Bank 
has  published  its  returns.  These  show  that  the  notes  in  circula- 
tion at  the  end  of  1913  amounted  to  2.490,000,000  kronen,  in  1914^ 
to  5,200,000,000  kronen,  in  1915  to  7,200,000,000  kronen,  in, 
1916  to  10,890,000,000  kronen,  and  in  191 7  to  18,440,000,000^ 
kronen.  The  average  monthly  increase  in  1915  of  166,000,000. 
kronen  rose  to  640,000,000  kronen  in  1917. 

Meanwhile  the  gold  cover  has  been  steadily  decreasing  at  a 
rate  which  threatens  its  total  extinction.  At  the  end  of  1914  it 
was  22.9  per  cent,  of  the  note  circulation;  in  1915,  9.4  per 
cent.;  in  1916,  2.8  per  cent.;  and  in  1917,  only  1.6  per  cent. 
.'Vs  the  gold  cover  decreased,  the  loans  by  the  bank  to  the  -■Vus- 
trian  and  Hungarian  Governments  increased  enormously.  In 
1915  they  amounted  to  625,000,000  kronen,  or  8.7  per  cent,  of  the 
note  circulation;  at  the  end  of  igi6  to  5,299,000,000  kronen,  or 
48.6  per  cent. ;  at  the  end  of  1917  to  13,690,000,000  kronen,  or  76.1 
per  cent. 

Attempts  are  now  being  made  to  reduce  the  note  circulation 
by  the  issue  of  "interest-bearing  bonds  of  the  Austro-Hungariai» 
Bank. 


February  i6,   igi8. 


XTbe  Jnveetots'  IRevtew 


173 


BANK    OF    ENGLAND. 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 

Week  ending  on  Wednesday,  February  13,  1918. 


Notes  Issued 


ISSUE    DEPARTMENT. 
.    76,275,335 


Government  Debt.. 
Other  Securities    .. 
Gold  Coin  and  Bullion 
Silver  Bullioa 


£76,273,335  ' 


BANKING   DEPARTMENT. 


Proprietors  Capital        •• 

Rest 

Publlo  Deposlls(lnoludiDg 
Bxckequer,  Savings 
Banks,  Commissioners 
of  National  Debt,  and 
Dividend  Aooounts) .. 

Other  Deposits 

Seven  Day  and  other  Bills 


£ 

14,553.000 

3.507,225 


Dated  February  14,  igi8 


£183.348.932 


£ 
Government  Securities  ..      56, 3^9,951 
Other  Securities    .,        ..     95,666,673 

Notes 30,214.535 

Gold  and  Sliver  Cola      ..        I,it7,773 


J.  G.  NAIRNE, 


£183,348,932 
Chief  Cashier. 


BANKING     DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
Feb.  14. 

Feb.  6, 
igi8. 

Feb.  13, 
19:8. 

Increase. 

Decrease. 

£ 

Liabilities, 

£ 

£ 

£ 

£ 

3.472.235 

Rest 

3,500,694 

3,507,225 

6,431 

51.923.359 

Pnb.  Deposits  .. 

41,143.292 

39,012.911 

2,l;o,38i 

145,157,070 

Other    do. 

125,504,321 

126,265,157 

760,836 

— 

28,240 

7  Day  Bills       .. 

10,476 

10,639 

163 

— 

Assets, 

Decrease. 

Increase. 

134,959,208 

Gov.  Securities. 

56,889,951 

56,349,951 

540,000 

— 

44,034.194 

Other       do. 

96,893,646 

95,666,673 

1,226,973 

— 

36.140,502 

Total  Reserve.. 

30,928,186 

31,332,308 

404,122 

2,534,403 

2,534,403 

Increase. 

Decrease. 

£ 

£ 

£ 

£ 

£ 

39,450,535 

Note  Circulation 

46,131,315 

46.060,800 

70,515 

57,141,037 

Coin  and  Bullion 

58,609,501 

58,943,108 

333,607 

lS-3  P-C. 

Proportion 

i8  6p.c. 

19     p.c. 

•4  p.c. 

— 

54  „ 

Bank  Rate 

5       ., 

5       ,. 

— 

LONDON   BANKERS'   CLEARING. 


Date. 

Increase. 

Decrease. 

January 
February  6 
.,        13 

1918. 
2,073,224,000 
44'  ,563,000 
383.794,000 

1917. 
I,865,i25,coo 
430,225,000 
440,039,coo 

2o8,o99,coo 
10  338,000 

£ 

56,245,000 

Total 

2,513,787,000 

2.295,350,000 

218,437,000 

- 

PUBLIC   INCOME   AND    EXPENDITURE. 


(For  7  days 

ended  Feb.  9  ) 

Reve-nue. 

Expenditure. 

pt 


Customs          1,596,000 

Excise 656,000 

Estate,  &c.,  Duties  ..        .,  466,000 

Stamps 360,000 

Land  Tax  and  House  Duty  230,000 
Property  and  Income  Tax    20,207,000 

Excess  Profits  Tax..         ..  4,172,000 

Land  Values  ,.        ,,        ,,  51,000 

Post  Office go-'jOco 

Crown  Lands — 

Sundry  Loans,.        ,,        ..  — 

M  iscellaneous 40,000 

Bullion  advances  repaid    . .  60,000 

ForTreasuryBillsfor Supply  53,653,000 

5%  Exchequer  Bonds,  1922. .  — 

6%  Exchequer  Bonds,  1920. .  — 
hi  at  ion  1  War  Bonds         .,*2r>679ooo 
War  Expenditure  CertiScates       — ' 

War  Savings  Certilicates  . .  2,200,000 
4%  War  Loan,  1929-1942  I 

5%  War  Loan,  1929-1947  \  ' '  1.169,040 
Other  Dtbts  created  under 
\Var  Loan  Act,  1915,  and 
Finance  Act,  1916..        ..39,732424 

Telegraph  Money  Act,  1013  — ' 
Under  Post  Office  RIy.  Act, 

1913 — 

Under  Military  Works  Act, 

1897-1903       _ 

Under  Public  Buildings    ..  — 

Under  Houshig  Act. .        ..        

Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds           — 

China  Indemnity      ..        ..  — 
East    Africa    Loan    repay- 
ments   — 

Suez  Canal  Drawn  Shares. . 
Ways  and  Means  Advances 

E*^  ase  in  Exchequer 
ices  
I 


12.797 
6,000,000 


£153,124,261 


National  Debt  Service 
Inter  st,   &c.,  on  War  Debt 
Development  &  Road  Impvt 
Pavmenis  to  Local  Taxation 
Otner    Consolidated    Fund 

Charges        

Supply  Services 
Bullion  Advances     ,. 
For   Advai  ce   for    Interest 
on  Exchequer  Bonds  un- 
der   Capital   Expenditure 
(Money)  Act,  1904  .. 
For  Treasury  Bills  .. 
War  Loan  and  Exchequer 

Bonds 
Other  Debt  under  War  Loan 

Acts,  19:4-16 

For  exchequer  Bonds  under 

Section  61  of  Finance  Act, 

igi6,  and  Section  54,  1917 

Under   Telegraph    (Money) 

Act,  1913 

Under    Post    OflSce     (Lon- 
don) Railway  Act,  1913  ,, 
Under  Military  Works  Acts 
Under  Housing  Act,  1914. . 
Public    Buildings  Expendi- 
ture Act,  1903 
Old  Sinking   Fund,  1907-8,. 
Sinking  FunH,  1914.. 
China  Indemnity 
East  African  Loan  , , 
Cunard  Agreement  Act 
Depreciation  Fund  .. 
Suez  Canal  Drawn  Shares. . 
TemporaryAdvances  Repaid 
Increase       in       Exchequer 
balances       


5,629,388 
10,380 


36,289,800 
100,000 


60,723,000 

223,157 

36,553-326 


1,000,000 

12,000,000 

595.210 


£153,124,261 


'Excluding  sales  through  banks  which  have  not  yet  been  brought  to  account 


CURRENCY  NOTES. 

Return  of  Currency  Notes  for  the  week  ended  February  13,  igi8. 


£ 
11,015,100 
7,434,900 
57.825,335 


£76.275  335 


£"i  notes 
los.  notes 
Notecertificatea 
Previous  total 


Issued. 


£ 

4.318,553 

1.315.314 

500,000 

824.096,841 


830,230,708 


Cancelled. 


£ 
3,098,219 
1.351,564 

lOO.OCO 

_6io,5i7,o7o_ 
St*), 066,853 


Outstanding. 


£ 

156,943.807 
36,850,048 
21,370,000 

213.579.771 


215.163,855 


Ratio  of  gold  held  against  notes,  this  week,  14.71  p  c. ;  last  week  15.06  p.c. 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.). 


Gold  coin  and  certificates 
Gold  Settlement  Fund 
Gold  with  foreign  agencies  . 

Total  gold  held  by  banki. 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

Total  reserves  . . 
Bills  discounied— Members'. . 
Bills  bought  in  open  market 

Total  bills  on  hand     .. 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec. 
Municipal  warrants 
Loans  on  gold  coin  and  bullion 

Total  earning  assets  ,. 
Due  fm  other  Fed  Res  biik— n. 
Uncollected  items 
Total  dedctns.  fm  gross  dep. 
5%Red.FundagFed.Res.bknts 
All  other  resources 

Total  resources 

Capital  paid  in    .. 

Surplus 

Government  deposits  .. 

Due  tomembrs-Res.  account 

Due  to  non-mbrs — clearing  ac. 

Members' bank  deposits— nett 

Collection  items 

Total  gross  deposits    . . 

F.R.  notes  in  actual  circulat'n 

F.R.  bk  nts  in  circn— nettliab. 

All  other  liab,  iq  for  Govcidts 
Total  liabilities 

Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Ratio  of  gold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio  of  total  res.  to  nett 
deposit  and  F.R.  note  lia- 
bilities comb  ned 


Jan.  II,  igiS. 


Jan.  4,  igi8. 


95,407,600 
73.325,800 
10,500,000 


90,014,400 

67.737.400 
10,500,000 


Jan.  12, 1917. 


179.333.400 
156,354,800 

3,9i8,4ro 


339506,600 
10,064,800 


349.571.400 
115,147,600 
52,538,200 


167, 685, Coo 

10,026,400 

27,445,400 

1,023,400 


206,181,000 
5,448,400 
fo,gio,8oo 


^6,359,2co 
107,400 
110,800 


62.^^9,800 


14,313,000 

226, Poo 

12,104,660 

300,004.200 

40,671,800 
4,081,000 


174,251,800 
159.438,200 

3,854,000 


337,544.000 
9.062,000 


346,606,000 
125,162,600 
54.267,600 


179.430,200 

10,233,400 

18,411,600 

1. 033,40* 


£ 
58,565,800 
41,3  8,200 


99  874,000 

54,902,400 

356,400 


155,132,800 
3.353.800 


158,486,600 
4,871,000 

23,iq').8oT 


28,066,800 
8,221,200 

2,g7i,40o 
I,g7i,8oo 


209,108,600 
9,048,800 
60,401,400 


69,450,200 
107,400 

107,400 


625.379.600 


356,861,6-0 

248,856,000 

1,600,000 

472,400 


622,32), 800 


61 -7%  ■ 
64.4% 


62.9% 


64.8% 


14,165,000 

226,800 

26,201,200 

289,846,000 


38,529, 

4,118.800 


00 


358,695,800 

250,241,000 

i,6co,ooo 

451.000 


41,231,200 

2,326,400 

24,169,200 


26,495,600 

80,000 

2,452,200 


228,745.'  00 


11,141,200 

5,551,800 
136,117,200 

22,247,600 


625,379,600 


60.2% 
65-3% 

64.2% 

62-5% 


163,9.6,600 
53.633.6:0 

54,200 


228,745.600 


81.4% 
103,0% 


81.2% 


83.0% 


NEW   YORK  ASSOCIATED    BANKS   (dollar  at  4s.). 


Loans       

Reserve  held  in  own  Vaults . , 
Reserve  held  in  Fed.  Res.  Bk 
Cash  in  own  Vaults     . . 
Reserve  held  in  Other  Depos. 
Nett  Demand  Deposits 
Nett  Time  Deposits    . . 
Circulation 
Excess  Lawful  Reserve 


Feb.  9, 1928.  Feb.  2, 1918.  Jan.ae.xgiS 


Lawful  Reserve  consists  of 
Time  Deposits. 


839.054,000 

3,570,000 

111,920,000 

19,634,000 

i,Sia|Ooo 

735.830,000 

40,388,000 

6,836,000 

19,182, oco 


834,280,000 

3,620,000 

108,664,000 

20,556,000 

1,714,000 

730,876,000 

40,616,000 

6,820,000 

16,518,000 


£ 

815,104,000 

3,704.000 

107,676,100 

21,690,000 

1,734,000 

728,306,000 

40,150,000 

6,806,000 

~',ooo 


Feb.io,igi7- 


694,142,000 

104,4CO,COO 

38,000,000 

11,476,000 
708,082,000- 
33,254iOOO 
5,720,000 
31,704,000 


18%  of    the  Demand  Deposits  and  5%  0^    ^^^ 


NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES  (dollar  at  4s.) 


Loans  ..        .. 
Specie 

Deposits 
Legal  Tenders 


Feb.  9,  1918. 


168,620,000 

3,654,000 

167,734.000 

14,878,000 


Feb.  2,  1918.  Jan.  26,  igiS,    Feb.  10, 1917 


166,928,000 

3.554,000 

166,426,000 

15,0^8.000 


£ 

164,722,000 

3,516,000 

167,606,000 

15.330,000 


150,422,000 

i3,i6o,coa 

159,662,000 

2,022,000 


BANK  OF  FRANCE   (25  Irancs  to  the  £). 


Feb.  14,  rgiS. 

Feb.  7,  1918. 

£ 
133,069,560 

Jan.  31,  igi8. 

Feb.  15,  1917. 

Gold  In  hand 

£ 
■33,129,880 

£ 
133,003,920 

127,565,240 

Silver  In  hand 

10,0^6,720 

10,022,760 

9  939,320 

10,980,000 

Bills  diaoounted      .. 

53.39t,l6o 

53,880,640 

40,627,330 

24,841,280 

Advances 

48  684,160 

49.465,040 

48,054,520 

49.965,880 

Note  oiroulation 

952,817,040 

949,604,760 

941,373.520 

709,882,800 

Public  deposits 

1,676,720 

10,823,96a 

942,000 

1,351.400 

Private  deposits 

105,577,040 

103,256,160 

118,075,600 

93,858,480 

Poreign  Bills.. 

708,080 

656,640 

571,o3o 

79.520 

Proportion  between  bullion  and  circulation  23.58  per  cent., against  23.64  per 
cent,  last  week.  Advances  to  the  State  £500,000,000,  unchanged.  The- 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium,  |ig  913,000, 
decrease  £41,320,  and  at  the  branches  £25,047,840,  decrease  £48,200. 

BANK    OF    SPAIN  (25  pesetas  to  the  £). 


Feb.  2,  1918 

Jan.  26,  igi8 

Jan. 19, 1918 

Feb.  3,  1917. 

Gold        

Silver 

Forelen  Bills 

Discounts  ana  Short  Bills  .. 
Treasury  AooounI,  &c. 
Notes  In  Circulation  .. 
Current  Aooounts,  Deposltt 
Dividends,  Interests,  &o.     .. 
Government  Seourlties 

£ 

79,024,705 

28,492,588 

3,536,575 

28,077,028 

26,312,300 

Jl3.t05.750 

38,446,675 

2,301,420 

:, 176,247 

£ 

79,018,335 

28,517,939 

3,534.523 

28,337.011 

26,792,163 

112,435,686 

38,728,904 

2,021,545 

1,416,668 

78,704,796 

28,356.739 

3,564,879 

28,556,309 

27,073.345 

112,672,744 

37,879,162 

2,128,861 

1,652,566 

51,807,451 

29,749.oo5 

3,400,359 

26,332,400 

25,949,869 

95,607,106 

29,718,845 

1,767,580 

1,066,618 

'74 


Xtbe  3nve8tor8'  TRevfew. 


February  i6,   1918. 


IMPERIAL  BANK  OF  OCRMANV  (20  marki  to  the  XI. 


The   Week's    Stock    Markets. 


Feb.  7,  1918 


Tolil  Coin  &  BulllOD 
Treasury  Noiet 
Btlts  disoounted       .. 
A  tvanoea        ..         .. 
Note  olrculatioo 
Deposita 


{. 
136,046,890 
61,929,350 
630,465,750 
455,650 
556,083.900 
3'5. '67.050 


Jan.  31,  1918. 


2 

136,051,100 

63,605,100 

655.376,250 

436,050 

556,946,70 
333.811,^50 


Jan.  33,  19.8. 


1 

136,038,850 

59.785.500 

620,901,850 

386.350 

545,941,600 

13,530,550 


Feb.  7,  1917. 


137.1  "3.550 
'4.>44.050 
409.43«.oco 
6co,75o 
394,614,000 
'75  352.3'0 


Clearing  House   return   during  January  £478,4>8,i7o,   againa  £487,563.7^5 
ia  December. 

BANK  OF  NORWAY. 


Odd 

Salanee  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
DlBOOunts  &  Loans. 
Notea  In  CIroulatloo 
Depoaita  at  notice.. 


Jan.  31,  1918. 


6,413.000 

4  506.000 

690, -joo 

30,703,000 

16  820,000 

11,533  000 


Jan.  1],  igi8 

6  413,000 

4, 541,000 
7J9.000 
21,154,000 
17,093,000 
11,970,000 


Jan.  7,  1918. 


6,413,000 

4,768,000 

713.000 

11,503,003 

17.394,000 

11,958,000 


Jan.  12, 1917, 


6,900,000 

4,403,-00 
767,000 
8,623,000 
12,743,000 
4,691,000 


SWISS  NATIONAL  BANK  (25  francs  to  the  £). 


Jan.  31,  191S. 


Gold  and  silver 

Bills 

N  Jte  olroulatloo 
Current  and  deposit 
accounts 


i 
16,693,852 
10,587,276 
35,324,100 

5,535,920 


Jan.  33,  1918. 


16,651,336 
9,782,364 
34.355. 716 

4.654,348 


Jan.  15, 1918, 


Jan.  31, 19«7- 

15,874.500 
6,475.784 
20,127,444 

4.375.196 


LONDON  COURSE  OF  EXCHANGE. 


Usance. 

Feb.  12,  1918. 

Feb.  14,  1918. 

Plaoe. 

Sellers. 

Buyers 

Sellers. 

Buyers. 

Amsterdam  . ,    . . 

Paris      

Switzerland..     .. 

Petrograd    '.'.     '.'. 

Genoa,  &c 

Spain     

Lisbon  and  dporio 
Copenliagen..     .. 
Christiania  ..     .. 
Stockholm  ..     .. 

Cable  transfers 

Three  months' bills  . .     .. 

Cable  transfers 

Three  months' bills..     .. 

Cable  transfers 

Tlirer  months' bills..     .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Three  months' bills..     .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

10.80 
10.95 
37.15 
27-55 
21.42 
21.77 
nom. 

19.60 

15.35 

'4  95 
1433 

1085 
11.00 
27.20 
27.60 
21.52 
21.87 
nom. 
41.05 

■T 
30I 
15.65 
1505 
14.43 

10.75 
10.92 
3713 
37.53 

nom. 
4>.'5 
19.60 

%^ 
1540 
14.82 
14.25 

10.80 
10.97 
27.18 
37-5« 
21.43 
2178 
nom. 
4125 
19.70 

5\ 
3oi 

15.30 

14.92 

1433 

FOREIGN  RATES  OF  EXCHANGE  ON  LONDON. 


Method  of 

-0! 

Last 

Thi< 

Quoting. 

It 
III 

Week. 

Week. 

Paris,  cheques 

Francs  10  £1 

33.224 

37.18 

37.16 

Amsterdam,  cheques 

Florins  to  Ji 

12.107 

io.72i 

10.77 

Italy,  sight 

Lire  to  £1  . . 

25.22J 

41.10 

4i'5 

Madrid,  sight 

Pesetas  to  £  I 

25.22J 

19.52J 

19.67 

Lisbon,  sight 

Hence  to  mltreis  . . 

53ld. 

29id. 

29id. 

Switzerland,  sight    ., 

Francs  to  £  I 

25.224 

21.40 

31.25-5 

Christiania,  sit^bt 

Kroner  to  £1 

18.. 59 

14.73J 

14.90 

Stockholm,  siuht      .. 

Kroner  to  £1 

18.159 

14.20 

14.274 

Copenhagen,  sight    .. 

Kroner  to  £1 

18.159 

I5.37i 

i5-<34 

Petrograd,  sight 

Roubles  to  £lc     .. 

94-57 

Alexandria,  sight 

Piastres  to  £1 

97i 

97i 

97J 

Bombay,  T.T 

Sterling  to  rupee. . 

1/4 

1/4| 

1/4I 

Calcutta,  T.T. 

Sterling  to  rupee.  ■ 
Sterling  to  d..llar.. 

1/4 

1/4I 

Hong  Kong,  T.T 

2/11 

2/1  li 

Shanghai,  T.T. 

Sterling  to  tael     . . 

— 

4/3i 

4/34 

Singapore,  T.T. 

Sterling  to  dollar.. 

— 

3/3t« 

liir 

Yokohama,  T.T. 

Sterling  to  yen     . . 
Dollars  to  £l 

2;.58d. 

3/l| 

New  York,  cable 

4.86S 

4.76I 

4-76J 

Buenos  Aires,  T.T. . . 

Pence  to  dollar    . . 

47.58d. 

50 1. 

5od. 

Valparaiso,  90  days.. 

Pence  to  peso 

■3SJj. 

i+d 

^(onteTideo,  T.T.     .. 

Pence  to  dollar    . . 

5id. 

59id. 

'S. 

Rio  de  Janeiro,  90  days 

Pence  to  milreis  . . 

i6d. 

nhi 

OPEN  MARKET  DISCOUNT. 


Thirty  and  sixty  day  remttted 
Three  uioutbs  ,, 

Pour  months  ,, 

Six  months  , 

Three  months  fine  inland  bills 
Four  months 
Six  months 


BANK    AND    DEPOSIT    RATES.    Last  week  This  week 

Per  cent.    Per  cent. 

Sink  of  England  minimum  discount  rate        5  5 

,,  ,,         short  loan  rates  .. —  — 

Bankers' rate  on  deposits 3A 

Bill  brokers' deposit  rate  (call)       3} 

„  7  and  14  days' notloe  32 

Current  rates  for  7  day  loans  3i~i 

..  for  call  loans  3i— I 


3 
3 
3l 

3^-^ 


A  story  is  going  the  round  of  the  papers  that  William  Hohen- 
zollern  is  going  to  iiieke  his  headquarters  at  Spa,  and  to  take 
A  short  cure  there.  And  in  order  to  surround  himself  with  the 
requisite  desert  to  protect  him  from  prying  eyes  and  accommo- 
date his  guards,  a  number  of  Belgians  are  being  ejected  from 
houses  in  the  neighbourhood  of  the  one  he  has  taken.  The 
ejection  is  to  be  siimmary  and  swift,  but  we  doubt  the  whole 
story.  Spa  is  quite  accessible  from  French  and  British  aero- 
dromes, and  William  i-,  as  arrant  a  coward  as  exists.  The 
mere  threat  of  a  visit  from  our  aeroplanes  has  but  to  reach  his 
cars,  and  he  wculd  vanish  from  Spa  like  a  troubled  ghost. 


Except  m  a  few  minor  sections  there  has  not  been 
much   to  excite  enthusiasm  in  fhe  Stock  markets  this 
week.    Of  course,  the  reduction  of  the  rate  on  Treasury 
WUs,  followed  by  the  Inevitable  lowering  of  the  bankers' 
allowance  on  deposits,  tend'ed    to    help    the    gilt-edged 
market,  but  the  competition    of   the    provincial    Tank 
campsugn   and   the   threat    of    a     second    invasion   of 
London  on  a  greatly  extended  scale  does  not  make  for 
activity   in  older    .securities.     And    in    other     respects 
developments   have   not  been   particularly    favourable. 
Political  unrest  always    rejicts    to    a    greater   or   less 
extent  on  the  Stock  Exchange,  and  the  signs  of  seeth- 
ing at  Westminster   have  not    been    without  effect  in 
Throgmorton  Street.     Then  the  Russian  imbroglio  and 
all  that  follows  from  it  with   regard   to  Rumania  and 
the    situation    generally    on    the    Eastern    front    make 
timid  people  frightened  of  their  own  shadow.     Under 
the  circumstances  one  might  have  thought  that  Home 
Railways,  which  at  any  rate    maintain    their  position, 
would  have  received  some  attention,  especially  as  they 
are  now  "  full  "  of  dividend,  but  they  have  been  one 
of  the  weakest  sections  in  the  House,  scarcely  giving 
place    even  to  the    temporarily    discredited    Argentine 
market  in  this  respect.    The  latter  has  again  been  upset 
by  an  outbreak  of  labour  troubles  and   sabotage,   and 
although  the  Government — frightened  at  the  Franken- 
stein it  has  helped  to  create — now  appears  to  be  taking 
strenuous   measures  to  suppress    the    disorders   incal- 
culable mischief  has  already  been  done,  and  it  will  take 
a  long  time  before    confidence    is    restored.      Several 
sections  of  the  Industrial  market  have    been    actively 
supported,  mainly  on  amalgamation  rumours,  the  most 
interesting  of  which    are    the    suggested  combines  of 
armament  firms — Vickers,  Armstrongs,  and  the  rest — 
and  explos'ive  manufacturers.     But  the  Shipping  divi- 
sion has  giot   into  the  doldrums,  partly  because    it    is 
beginning  to  dawn  on  buyers  that  the  inflation  of  ton- 
nage and  capital  values  cannot  last  for  ever,  and  partly 
because  holders  are  in  many  cases  getting   anxious    to 
secure  their  profiits.    We  sho.uld  ssiy  generally  that  there 
is  no  immediate  necessity  to  realise,   but  undoubtedly 
many  prices  are  at  a  level  which  cannot  be  maintained 
indefinitely. 

Judging  by  the  number  of  transactions  recorded  daily  on  the 
Stock  Exchange,  the  business  has  not  been  nearly  so  bad  as  some 
of  the  dealers  would  like  to  make  out.  It  must  be  admitted, 
however,  that  it  has  been  ill-distributed,  and  while  a  few 
specialities  have  shown  i.p  to  great  advantage  the  general 
average  has  been  decidedly  disappointing.  Gilt-edged  securi- 
ties opened  with  a  very  dull  tone  except  in  the  case  of  the  tax- 
free  War  I>oan,  which  is  coming  into  more  favour  on  the  feeling 
that  with  the  national  expenditure  likely  to  continue  at  the  same 
rate  for  some  considerable  time  those  who  compounded  the  tax 
may  even  yet  come  out  best  in  the  bargain.  After  the  rate  on 
Treasury  bills  was  reduced  the  tone  for  very  obvious  reasons 
became  much  stronger,  and  several  fractional  gains  were  re- 
corded throughout  the  list.  Cokinial  issues  made  a  fairly  good 
start,  but  afterwards  dropped  into  utter  neglect,  and  (nly  re- 
sponded feebly  to  the  stimulus  of  the  cheaper  money  which  we 
are  promised.  In  the  Foreign  section  busine.ss  has  dropped  to 
a  point  at  which  it  is  scarcely  worth  considering.  A  few 
bargains  in  Japanese  and  Spanish  helped  these  stocks  to  a  small 
extent,  but  Brazilians,  Mexicans,  and  other  usually  favoured 
securities  hid  nothing  to  show  in  any  direction.  Russians  have 
been  completely  suspended  as  far  as  business  is  concerned  for 
the  time  being  until  the  outlook  becomes  somewhat  clearer. 
Among  minor  issues  a  fall  of  ij  in  Cuban  Ports  may  be  men- 
tioned. 

Home  Railways  have  been  in  a  very  distressful  state  all  the  ' 
week,  and  although  they  hardened  a  little  towards  the  end  on 
purchases  by  bargain  hunters  the  loss  on  balance  amounts  to  a 
considerable  figure.       The  reports   have    been   as  gcod  as   thej 
market  could  reasonably  have  expected,  but  there  was  a  feeling 
that  miscellaneous  receipts  might  enable  the  companies  to  give  ; 
the  shareholders  a  little  extra  dividend  on  this  occasion  owing 
to  the  large  accumulation  of  funds  which  are  held  up  to  provide  ] 
for  arrears  of  maintenance.     This  apparently  has  not  appealed 
to  railway  directors,  and  the  agitation  to  get  the  Great  Western 
dividend  increased   has  perhaps  helped   to  unsettle  the  market 
still  further.    Americans  have  been  a  perfect  blank,  and  Cana- 
dian Pacifies  have  scarcely  been  mentioned.     The  official  denial 
with  regard  to  the  rumoured  guarantee  bv  the  Canadian  Govern- 
ment  of  a  substantial  return  on   Grand  Trunk  stocks  knocked 
the  bottom  out  of  this  market,  and  very  serious  declines  occurred. 
As  a   matter  of  fact,   in  well-informed  quarters  the  story  was  j 
never  giwen  much  credence,  but  it  evidently  attracted  some  of  I 


February  i6,   1918. 


^be  Jnvestors'  TRevtew. 


175 


Last  I  This  || 

WeeklWeekll 


Consols 

War  Loan   3*% 

4}% 

5%   1929-47- • 
4%,I9;9-42•• 

India  3%  

,.     3^ 

Australian  5}%,  1920-22  . . 

Canada  4%,  1940-60 

4j%. '920-5  

N.S.W.  4%.  >933 

Argentine  4%,  1900 

Belgian  3% 

Brazil,  1913 

.,       5%,I9I4    

■Chinese  1896  

,,       lgi2  

Egypt  Unified  4% 

Caledonian  defd 

<jt.  Central  pta 

dfd 

Gt.  Eastern 

Gl.  Northern  dfd 

Gt.  Western    

I^ancs.  and  Yorks 

i.ondon  Brighton  defd.  .. 
I.ondon  Chatham  ord 


Canadian  Pacific   . . 

E.  Indian  Guar.  4J%  debs. 

Grand  Trunk  ord.    

Do.  ist  pf 

Do.  3rd  pf 

Antoiagasta  dfd.     

Brazil  Common 

e.  A.  &  Pacific  

B.  A.  Gt.  Southern  

B.  A   Western    

Anglo-South  American   ., 

Bank  of  Australasia 

Bank  of  N.S.  Wales 

Barclay  &  Co.  "  A  " 

Do.       "B" 

Capital  &  Counties  

Chartered  of  India    

Hongkong  &  Shanghai    . . 

Lloyds  

London  &  Brazilian 

Armstrong,  Whitrtrorth  .. 
Birmingham  Small  Arms 

Cammell-Laird  .^ 

Cargo  Fleet 

Dorman,  Long  

Associated  Cement 

Borax  dfd 

Bovril    

Brazil  Traction  

British  A  mer.  Tobacco  pf. 

Briiish  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Kellner 

Coats 

Conrtaulds 

Cunard 

Dennis  Bros 

Eastern  Telegraph   

I£astmans 

English  Sewing  Cotton  .. 

Anglo-Egyptian  "B' 

Baku  (los.)  

Burmah , 

Lobitos 

Maikop  Pipeline   . . , 
Mexican  Eagle  pf..., 

Allagara/- 

Anglo-Java  Rub.  2/- 

Anglo-Malay2/ 

Ayer  Kuning  £1 

Batang  Malaka  2/- 

Bekoh  2/- 

Brit.  N.  Borneo  Trust  £1 

BukitCloh2/- 

Bukit  Kajang  £1 

Bukit  Mertajam  2/-   

Bukit  Sembawang  2/- 

Carey  United  £1   

Ceylon  Para  2/- 

Chersone.se 

Chevi  t  2/-  

Dalkeiih  2/- | 

Eastern  Invest.  Trust  £1. 

Grand  Central  £i 

Gula  Kaluinpong  £1 

Highlands  £1 

Java  Investmtnt  £i 

Java  Para  /  i  

Johore  Rubber  Lands  £1,. 

Kamunin    2/- 

Kinia  Kellas  2/-  ' 

Kuala  Kubu  2/-  

Labu  2/- [ 

Langen  Java  £1 .,.'. 

Linggi2/- 

London  Asiatic  2/- 

Malacca  £1 

Malayalain  £i 

Mcrlitnau  2/-   

Padang  Jawa  2/- [.'., 

Pataling  2/- 

Abbontiakoon  (10/-) 

Bechuanaland  Exp 

Brakpan  

Broki-n  Hill  Prop.  (8/-)   .. 

Cam  &  Motor 

Central  Mining  (;f  12)  .... 

Chartered    

City  Deep      

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (10/-) 

De  Beers  dfd.  {£2  los.)  . 

East  Rand  

Geduld 

Gov,  Areas  Mod     


N.S.W.  4i%5yr-l'ds 

.,      4J%.  "922-7 

I.        5%i  1921-3 

5J%,  1920-2    ... 
New  Zealand  4%,  r929    . 

Queensland  4% 

45%.  1920-5    . 
Union   of  S.  Africa  4i%, 

1920-5     

Victoria  4i%,  1020-5 

Westn.  Aus.  4%    

French  War  Loan,  5%  . . 

Japan  4J%  (ist),  1905    

5%  i9°7 

Mexican  5%,  1S99    ...... 

Russia  4   % 

>i      4i%, '909 

„      5%,  1906 

London  and  N.-W.     .... 
London  and  S.-W.  dfd.  . 
Do     red.  pf.  1914 

Metropolitan 

Do.        5%      pf- 

Met.  District 

Midland  dfd 

Nth.  British  dfd 

Nth. -Eastern  

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern 


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San   Paulo  ( Brazilian) . . . 

United  of  Havana 

London  City  &  Midland. 
London  County  &  West?. . 

London  Joint  Stock 

Nat.  Prov.  otEng.(£ioJ  pd) 
Do.  (£12  pd) 

Parr's    

Standard  of  S. A 

Union  Discount 

Union  Sc  Smiths 


Last    This 
Week  Week 


Kynochs   

Mond  Nickel  ord 

South  Durham  Steel 

Thornycroft    

Vickers 


99 
90J 
97 
98 

86J 
8o| 


92 
94 

79J 

79i 

99i 

91 

58 

38i 

40 

.■io 

93 

Mi 

94 

22| 

77 
155 
59 
■4i 

30 
56 


59 

iH 

18J 

182 

75 

ex 

16 
ui 

26  J 

30.i 
33** 
11^ 
ic|x 
26|x 

39' 
33 
43/ 
40/ 
42  6 


59 

974 
95 

80  < 


92! 

794 

80J 

99i 

93 

5H 

38i 

40 

49 

92 

238 

94 

22J 

158 

96-J 

29 

56 

20i 

26i 


.'73 

38 

19 

1 82 

74.S 


24* 

26| 

30.4 
33J 

10^ 

26 


38/fi 

43/ 
40/ 
41/6 


Fine  Cotton  Spinners 

Forestal  Land 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay    

Imperial  Tobacco  '  C  '  pf 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car 

Pears,A.&F 

P.  &0.  dfd 

Royal  Mail  

Underground  Inc.  Bds.  . . 


IS/ 

35/ 

47/b 

47,6 

6b,  6x 

64/g 

21 

2* 

7b 

7ft 

33/() 

32  6x 

20/ 

20/ 

3H( 

3^ 

3it 

3» 

It) '9 

20/3 

17/ 

l6.'9 

.^ 

■» 

344* 

344 

127 

12G 

8.4 

8oi 

North  Caucasian  . 
Roumanian  Cons.. 

Shell 

Spies  (10/-)  ....... 

Ural  Caspian 


6/6 

I 


Perak2/-    '     7/9 

Port  Dickson  2/-   j     4/3 

Rub.  Estates  Johore  £i..\  43/6 
Rub.  Estates  Krian  2/-. . .  .1     4/ 

Rubber  Trust  ^^i j  29/t^ 

Sampang  (Java)  2/- I  2/7^ 


4/3 

4/3 

7/6 

7/3 

5ft 

5A 

57/9 

59(6 

13-3 

12/3 

bri, 

(ifl, 

16/ 

•  ^Ib 

3?, 

3^ 

34/ 

32/9 

19/6 

19/6 

2 

2 

13 

13 

6/3 

5/6 

2^ 

m 

Sapumalkande  £i 

Seaport  i^l 

iielangor 

Sengat  2/- 

Seremban  £■! !  41/ 

Shelford£i j  37/6 

Sialang  ,ri    1  t6/6 

Singapore  Para  2/-    J  4/i| 

Singapore  Unitfcd  2/-    ....;  3/i| 
Soember  Ajoe  2/-  ... 

Stagbrook  £1  

Straits  Bertam  2/- . . . 

Sumatra  Para  2/- 

Sungei  Bahru  £1  ... 
Sungei  K^par  2/-  ... 
Sungei  Kruit  £t.,   . . 

Taiping  2/-  

Tali  Ayer  ^l   

TdUdjong  £1    

Tandjong  Malim  £1, 

Tehran  £1  

Telogoredjo  jTi 

Tempeh  2/- 

United  Serdang  2/-  . 
United  Sumatra  2/-  . 

ValdOr  2;- 

Vallambrosa  2/- 

Way  Halini  i/S  pd.    . 


Gt.  Boulder  (2/.\    

Kyshtim    

Mashonaland  Agency  . . 

Meyer  &  Charlton    

Modder  "  B  " 

Do.    Deep 

Mysore 

R^nd  Mines  (5/-)    

Rio  Tinto  (£5)   

Russo-Asi  itic 

Spring  Mines 

Tang-myika 

Tanalyk    

Van  Ryn  Deep   


tlie  more  speculatively  minded  dealers.  Argentine  Railways 
have  naturally  been  depressed  by  the  further  outbreak  of  labour 
troubles,  and  although  ihere  was  some  slight  recovery  on  the 
belated  Government  action  to  prevent  complete  chaos  the  market 
has  been  more  or  less  demoralised  throughout  the  week. 
Mexicans  were  scarcely  mentioned,  and  San  Paulos,  United  of 
Havana,  and  a  few  others  were  flat  in  sympathy  with  the  rest 
of  the  section. 

Bank  shares  were  just  steady.  Scarcely  any  movement 
occurred,  and  the  dealings  were  on  a  very  limited  scale. 
Breweries,  after  the  recent  display  of  strength,  have  been 
mostly  on  the  down-grade,  no  doubt  owing  to  efforts  to  secure 
some  of  the  profits  which  had  previously  accrued.  City  of 
London,  Allsopp,  and  Watney  have  particularly  suffered  from 
this  influence.  Egyptian  securities  have  continued  to  attract 
a  great  deal  of  support,  and  although  there  have  been  small 
reactions,  prices  generally  are  substantially  higher  on  balance. 
Although  we  have  great  faith  i:n  the  future,  after  the  long- 
continued  upward  movement,  it  may  be  prudent  to  call  a  halt. 
Iron  and  Steel  shares,  as  a  rule,  have  been  very  firm,  and 
most  of  the  leading  issues  have  gained  small  fractions  almost 
every  day,  but  the  only  prominent  movement  has  been  in 
Canadian  Car  and  Foundry,  which  have  advanced  sharply. 
Rumours  about  a  big  amalgamation  of  armaraenit  companies 
have  been  very  persistent,  and  no  doubt  there  is  something  of 
the  sort  in  the  wind,  but  no  explicit  details  have  transpired. 
Among  Land  shares,  Hudson's  Bays  have  been  well  sup- 
ported, but  Nigers  have  lost  part  of  the  recent  advance. 
Nitrates  were  very  firm  at  one  time,  but  closed  below  the  best ; 
and  among  Miscellaneous  Industrials,  the  tendency  has  fluc- 
tuated between  moderate  optimism  and  some  anxiety  as  to 
the  future.  Textiles  were  steady,  and  Selfridge  debentures 
advanced  3  points.  Shipping  shares  have  been  irregular,  with 
a  rather  dull  tone.  Royal  Mails  and  Court  Lines  were  par- 
ticularly weak,  and  the  chief  exception  has  been  a  smart 
advance  in  Khedivial  shares,  which  are  nearly  5s.  up  on  the 
week. 

Oil  shares  have  not  received  much  support,  and  such  things 
as  Trinidad  Leaseholds,  Ural  Caspians,  Venezuelan  Con- 
cessions, and  British  Burmahs  have  given  way  fractionally, 
but  often  there  has  scarcely  been  enough  business  to  test  the 
market  properly.  Rubber  shares  have,  on  the  whole,  main- 
tained a  firmer  appearance,  in  spite  of  the  fact  that  the  price 
of  the  commodity  has  again  fallen  back  to  t'he  neighbour- 
hood of  2s.  3d.  At  the  same  time  there  is  a  general  feeling 
that  something  must  be  done  to  relieve  the  young  producers 
from  the  unfair  incidence  of  the  excess  profits  duty,  and  as 
long  as  good  results  are  secured  by  the  vast  majority  of  plan- 
tations, the  market  is  sure  of  a  substantial  amount  of  public 
support. 


Arriving  too  late  to  be  dealt  with  fully  this  week, 
the  Board  of  Trade  returns  for  January  show  that  im- 
ports amounted  to  ;£^99,059,ooo,  an  increase  of 
;^8,466,ooo,  while  exports  were  ^£^5, 195,000  lower  at 
;^4i,666,ooo,  and  re-exports  ;^5, 240,000  lower  at  the 
meagre  total  of  ;^3, 190,000.  Imports  have  only  been 
exceeded  twice — in  August  and  November  last  year — 
while  exports  are  much  lower  than  the  average,  only 
three  months  in  1917  giving  poorer  results.  Re-ex- 
ports compare  with  ^^10,980,000  in  May,  1916.  As 
regards  imports,  food  and  drink  show  a  decrease  of 
^6,170,000,  but  raw  materials  advanced  ;^4, 375,000, 
and  manufactured  articles  ;^'9,o66,ooo.  Exports  of 
manufactured  articles  fell  ;^3,oo5,ooo. 


LONDON    PRODUCE   MARKETS, 


Sugar. — No  change  was  made  in  quotations  during  the  week. 

Coffee. — A  sustained  inquiry  was  e;iperienced,  which  resulted 
in  a  fair  amount  of  business  being  concluded  at  a  firm  range  of 
prices.  Public  sales  were  on  a  moderate  scale,  and  included  a  few 
second-hand  parcels  of  mild  descriptions.  East  India  bold 
Mysore,  sold,  121s.  ;  Neilgherry,  1253. ;  Coorg,  115s.  Some  Costa 
Rica  peaber.y,  sold,  137s.  Long  berry  Mocha,  without  reserve, 
sold,  ins.  6d  ;  and  washed  Dumont  peaberry,  ditto,  103s.  to 
1063.  6d.  Santos,  on  quay  terms,  p.-ime  to  fancy  pale,  sold,  74s.  6d. 
to  81S.  6d.  Th^  market  for  future  delivery  remained  in  a  dull 
state. 

Cocoa. — Market  quiet,  with  only  limited  transactions  on  former 
terms.     Tliere  is  a  brisk  inquiry  for  cocoa-butter. 

Tea. — During  the  week  32,000  packages  Indian  and  7,100 
packages  Ceylon  were  put  out  for  ballot.  Lack  of  transport  is  still 
in  a  great  measure  responsible  for  the  slowness  with  which  parcels 
are  passing  into  consumption. 

Rice.— Beans  and  peas  continue  in  good  support  at  steady 
rates. 

Spice. — Pepper  market  quiet,  but  prices  steady  for  white  sorts. 
Singapore  black,  sold,  is.  2d  ;  Tellicherry,  is.  3jd.  ;  and  Muntok 
white,  IS.  gd.  Zanzibar  clives,  spot,  is.  gd.  Tapioca  firm.  Fair 
flake,  spot,  7jd.  ;  fair  Penang  seed  pearl,  70s.  ;  medium,  67s.  6d.  ; 
small  fair  sago,  67s.  6d.  ;  and  St,  Vincent  arrowroot,  8Jd. 

Hemp. — East  India  slow,  at  about  late  rates. 

Shellac. — Market  opened  easier,  but  subsequently  ruled  firmer, 
with  small  sales  in  fair  free.  T.N.  spot  at  432s.  6d.  to  495s. 
Futures  nominal. 


176 


Xlbe  3nve8tot8'  TRevlew. 


Febrlarv  i6,   1918. 


Rubber. — Market  slightly  irregular,  though  prices  fairly  steady, 
with  moderate  transactions.  Plantation  crepe,  spot,  sold,  zs.  4jd., 
2S.  3id.,  2s.  4d. ;  April-June,  2s.  jfd.,  2s.  4}d.,  2S.  4}d.  ;  July- 
December,  2s.  6d.,  2s.  5jd.,  2s.  6d.  Kibbed  smoked  sheet,  spot, 
sold,  2s.  3jd.,  2S.  3d.,  2S.  3jd.  Hard  fine  Para,  spot  and  February- 
March,  done,  23.  6Jd. ;  solt  fine  quoted,  2S.  3jd. ;  and  caucho  ball, 
IS.  6Jd.  per  lb. 

Corn  (Mark  Lane).— Nothing  occurred  to  alter  the  all-round 
tone  this  week,  steadiness  remaining  the  prevailing  characteristic, 
though  dealings  were  kept  down.  Wheat. — Native  grain,  75s.  6d. 
per  quarter,  504  lbs  Of  imported  descriptions,  No.  i  Northern 
Manitoba  rules  at  8is.  6d.,  and  No.  2  ditto,  80s.  Australian, 
83s.  6d.,  lilue  stem  and  La  Plata,  8is.  6d.,    Hard    winters.  No.  2, 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 
WEEK   K.NDING    FEBRUARY  15,  1918. 


Week. 


This 
Week. 


•u<»r— pet  owt.. 
duty  14/,  98  <X 
polarisation 

Tatft'8  Cubes 

Crustied ■ 

Granulated  ..     .. 

Lyle's  granulated 

Foreign.  granu- 
lated, first  maikf 
f.o.b.,  spot 

GerinanCubef.o.b. 

French  Cube 

prompt 

Crvstalllsed,  West 
India 

Beet,   88%    f.o.b 

I«»— per  lb.,  duty 

ih  lb. 
Indian  Pekoe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe    S-jucliong 
Ceyloo  Pekoe      .. 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe  Souobong 

Cocoa  —per  owt. 

dull  6d.  per  lb. 
Trinidad — per  owt 
Grenada  ..  .. 
West  Africa..  .. 
Ceylon  Plantation 
Guayaquil  Ariba.. 
OoITm — per  owt. 
duty  43/- per  owt. 
Bast  India    . .     . . 

Jamaica 

Costa  Rloa  ..  .. 
ProvUtoni— 

Butter,  per  owt. 
Australian  finest 
Argentine  . .  . . 
Irtata  Creameries 
Dutch  ditto..  .. 
Russian  finest  .. 
Paris  baskets  .. 
Danish  finest 
Brittany     rolls  — 

doz.  lb 

Baoon— per  cwi. 

Irish      

Continental , ,  , . 
Canadian  , ,  . . 
American  . .  . . 
flama — per  owt, 

Irish      

Canadian  . ,  . . 
American     ,,    .. 

Ob«(M— per  cwt. 

Dutch 

Canadian  ..  .. 
English  Cheddar 
Wilts  loaf  ..  .. 
New  Zealand 

Blca — per  cwt. 

japan     

Rangoon  9  stars  . . 

BMi— per  190. 

English 

Irish      

Danish , 


£  «.    d. 


2  13  9 
a  13  9 
2  6  g 
269 


nom. 
nom. 


269 
nom. 

s.  d.  s.  d. 

nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom, 

d.  s.  d. 
87  0-  99  o 
85  ^  98  o 
68  o-  77  o 
77  o-  94  0 

ioy-u2/ 


IOC-0  I2I-6 

77-0  151-0 
97-0  118-0 


352/ 

252/ 

nom. 
nom. 
nom, 
nom 
nom 

nom. 


172/ 

171/-172/ 
171I-172I 
172/-180/ 

203/ 
163/-165/ 
125/-165/ 

129/6-160/ 
nom. 
142/ 
nom. 
nom. 

•.    d. 
nom. 
26    3 


44  0-45  O 

40  0-42  o 

nom. 


iC    8.  d 


a  13  9 
2  13  9 
269 
2    6    9 


nom. 
nom. 


269 
nom. 

d.  B-  (1 

nom. 
nom. 

nom. 
nom. 
nom. 
nom. 
nom. 
nom, 
n<  m. 
nom. 

,  d.  b  d. 
87  0  -99  o 
85  o  -98  o 
65  6  -70  o 
77  0  -94  o 

110/-112/ 


8p«lter— 

G.O.B.  as  to  posi 
tion 


Flour— per  sack. 

Country  Straight 

Runs  ex  Mill.. 


54  o  50  0 


44/3 


1000  121  6 

770  151  3 

103  0  127  0 


252; 
252/ 

nom. 
nom. 
nom. 
nom. 
nom. 

nom. 


172; 
171/ 
172/ 

I72/-IS0/ 
203/ 

i6a/-i65/ 
125/-165/ 

i29/6-i6o/' 
nom. 
142; 

nom. 

non,. 

s.    d. 
^om. 
26    3 


44  0  45  o 

42  s-44  o 

nom. 


54  o  50  o 
44/3 


Last 
Week. 


This 
Week. 


Wool— per  lb. 

A  u  s  t  r  a  1  I  a  n 
Scoured  Merino 
Scoured  Cr'ssbr'ii 
Greasy  Merino  . . 
Greasy  Crossbred 
Ne  w  Zealand 
(scoured)  Merino 
Greasy  Crossbrefi 
Cape  snow  white 

Indlarubberp.il) 

Plantation,      Spot 
Crepe 


Coal— per  ton 

Durham,  best  .. 

Seconds       ..  . 
East  Hartlepool. 

Seconds       ..  . 
Steams,  best 

Seconds       ..  . 

Lead — per  ton. 
English  Pig.. 
Foreign  sott,  net 

Qulokallver— per 

bottle  tirstband 

Tin— per  ton 
English  Ingots 

Do.    bars 
Standard  cash    . . 
Tin  Plates, per  box 
Gopper — pec  ton. 
English,     Tough. 

per  ton  ..  . 
Best  Selected    . 

Sheets 

Standard      . .     .  - 

Juta— pec  ton. 

Native   firsts    for 

shipment 

011»— 

Linseed,  per  ton. 

Rape,  refined  . . . 

,,  crude  . . . 
Cott'nSeeo.cruta 
Ditto,  refined  . 
Petroleum  Oil, pe 

8  lbs. 
Water  While      . 
Oil  Seeds, Linsee 
Calcutta— pet  ton 
Spot 
Rape     


rem. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom. 


0    2    3J 


nom. 
nom. 
nom 
nom. 
32  6 
29  6 

£    «.  d. 
nom. 

£29i-£m 


£310 
£3" 
£305 

nom. 


nom. 
£ii9-fi23 

£■47 
£110-110^ 


nom. 

£58-£63 

£71 

£66 

£60 
£67-£95 

i(7i 
1/84 


29  15     - 
/29-t0;C30 


Iron— per  ton 
Cleveland  Cash  . . 
Tobacco  —  dut) , 

unmanufacturei 

7/4  to  8/0  pec  lb. 
Uaryland  &  Oliio. 

per  lb.  be  nd    . . 
Virglnialeat. 
Kentucky  leaf    . 

Latakia 

Havana 

Manila 

Cigars,   duty    lo/b 

per  lb. 

Timber— Wood. 

Pitch  t'ine    . . 
Indian  Teak 

Torpen  tine- 
American  Spot 

Coprft— pec  ton 

Malat>ac 
Ceyioh  ..     .. 
F.M.S.  Singapoce 
F.M.    Stcaits 


nom. 

0  8  -2 
07-011 
20-5 

1  6  -6 
nom. 

2/  upds. 


500/ —  400 
380/—  700 

124/6 


46    o 
46    o 

45    !5 

45  'o 


f    8.    d. 

nom. 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


0    2    3i 


nom. 
nom. 
nom. 
nom. 

32  6 
29    6 

i     s.  d. 

nom. 
£29i-£28i 


£330 
£331 
£323 

nom. 


nom. 
£il9-£l23 

r  ^'*^  1 

£110-1108 


£58-£63 

£71 

£66 

,£60 

£67-£95 


1/74 
i/8j 


29  15    0 

£29-IOjC30 


nom. 
0  8—2    I 
o  7 — 0  II 
2  0—5    0 
16-66 

nom. 

3/  upds. 


300/— 400; 
380/— 700/ 

124/6 


46    o 

46     o 

45  '5 
45  10 


80s.,  all  landed.  Flour.— Canadian,  export  patents,  51s.  gd., 
landed_  English,  44s.  3d.  per  sack,  ex  mill.  Barley.— Californian, 
93s. ;  English,  62s.  gd.  Maize  remains  stationary  at  present. 
Maize  ineal.— White  offers  at  64s.  6d.,  and  yellow.  63s.  6d. 
Oats.  -American,  white  clipped  (controlled).  60s.  6d.  ■  Enelish. 
46s.  3d.,  per  336  lbs.  .        6       . 

Cotton  (from  our  Manchester  correspondent).— The  market 
during  the  past  week  has  shown  no  signs  of  life,  and  a  dragging 
state  of  affairs  has  existed  in  all  departments.  The  output  of  the 
machinery— which,  of  course,  is  considerably  restricted  by  the 
Control  Board— has  not  been  sold.  Prices  and  engagements  are 
getting  more  irregular  from  week  to  week,  and  here  and  there 
producers  are  now  pressing  for  fresh  business.  Fluctuations  in 
raw    cotton    rates    have     been     unimportant,    the    tone    being 


steady.  A  good  deal  of  interest  has  been  taken  in  the 
census  of  raw  cotton  stocks,  and  it  is  evident  the  situation 
is  distinctly  better  than  three  months  ago.  The  Government 
has  decided  to  fix  prices  in  yarns  for  war  contracts,  and  as  a 
result  of  the  ba-sis  now  established  the  profits  of  spinners  will 
be  reduced.  The  inquiry  in  piece  goods  for  all  outlets  has  been 
very  discouraging.  Our  customers  have  sent  very  few  offers,  and  the 
reports  now  being  received  from  the  other  side  are  not  of  a  nature 
to  encourage  local  merchants  to  anticipate  future  wants.  During 
the  last  day  or  two  small  lots  have  been  put  through  in  light 
fabrics  for  India,  but  grey  shirtings  remain  decidedly  dull.  There 
has  not  been  any  move  towards  greater  activity  on  the  part  of  ex- 
porters to  China.  Mail  advices  refer  to  considerable  apprehension 
with  regard  to  the  future  owing  to  the  internal  troubles  in  the  Far 
East.  Buyers  for  Egypt  and  South  America  have  adopted  a 
waiting  policy.  A  fair  undercurrent  of  demand  has  been  experi- 
enced in  home  trade  fabrics.  The  irregularity  in  American  yarn 
prices  has  tended  to  increase,  and  the  offtake  has  been  poor. 
Some  special  sales  have  been  mentioned  in  the  lower  numbers,  but 
in  medium  and  fine  counts  vfry  little  has  been  done,  with  the 
result  that  the  position  of  producers  tends  to  be  weakened.  A 
limited  turnover  has  transpired  in  Egyptian  spinnings  for  hon".& 
use,  but  rather  more  buying  has  been  repr  rted  for  India. 


COMPANY    RESULTS    IN    BRIEF. 

Name  and  Total  Carried^ 

Accounting                    Gross  Nett  Re-     Divi-    For- 

Period.                      Profit.  Profit.  serves,  dend.  ward. 

£  £  £  %      £^ 

Aberdeen  Heritable  ..  (Dec.)  15,400  1,390  24.000  7J    1,9°" 

Do Previous  16,230  1,800  24,000  7I     1,860 

Average  Trust    (Dec.)     4.030  2,960  13.750  40          790 

Do Previous    5,100  3.840  13,250  50          875 

Bath  Gas  Light      . . .  .(Dec.)i53,68o  27,370  40,670  5     32.000 

Do Previousi3i.5oo  20,890  40,670  5     28,170 

Baxter's  Leather    ....(Dec.)  48,080  12,640  35,000  15      3,i;0' 

Do Previous  66,740  26,020  31,000  15      6,200 

Bradbury,    Greatorex   (Dec.)      —  53.840  100,000  12     41,110 

Do Previous      —  50,260  100,000  10     34,9'° 

British  Land     (Dec.)     —  6,700  6,oco  2J     8,900 

Do Previous      —  10,800  6,000  2J     8,200 

Cerebos    (Nov.)  72,310  31,500  10,000  10*     9,400 

Do Prev.  63,100  21,190  —  nil     17,930 

Chadburn's  Tgph.     ..(Mar.)  56,500  10,060  3,190  9      3,550 

Do Prev.  39,460  9.820  6,000  8      2,520 

City  of  B.  Ayres  Trms.(Dec  )  77,250  67,560  62,450  5            70 

Do Prev.  77,200  67,460  56,850  5           no 

Cotton  Machiny. Trust  (Dec.)      —  5.020  —  15     13,200 

Do Prev.      —  5,010  —  15     12,350 

Griendtsveen  Moss   ..(June)  10,070  5,880  nil  10      4,080 

Do Prev.  10,810  6,330  nil  10      4,270 

Hayes,  Candy,  and  Co. (Dec.)      —    ,  22,830  19,740  10     11,800 

Do Prev.      —  32.830  15.140  10     17,850 

Holzapfels   (Dec.)i3i.79o  72,480  47,500  10    26,330 

Do Prev.  109,090  52,990  47,500  7j     5,850 

J.  and  R.  Allan   (Jan.)      —  14,930  23,000  5      6,230 

Do         Prev.       —  10,410  21,000  5       1,600 

J.  B.  Brooks  and  Co.    (Aug.)      —  18,400  155,000  10      4.300 

Do Prev.      —  23,140  150.000  10      2,140 

John  Gray  and  Co.  ..(Dec)  52,100  18,250  65,200  10      6,150 

Do Prev.  33,180  13.230  57.450  10      4.95° 

John  Shannon  &  Son  (Dec.)  39,650  20,890  35,000  10     11,040 

Do Prev.  32,260  22,160  30,000  8     11,650 

I^ndon  Necropolis    ..(Dec.)    8,220  6,030  10,170  4            6o- 

Do Prev.     8,220  6,320  9,710  4       2,400 

London  Offices (Dec.)  31,160  19,830  62,500  6      4.910 

Do Prev.  29,170  19,190  50,000  6      5,450 

Ludlow  Bros (Dec.)        —  11,640  14,000  10      8,450 

Do Prev.        —  11,680  10,000  10      7.240- 

M.  Oldroyd  and  Sons  (Dec.)  75,740  58,970  175,000  10    20,740 

Do Prev.  7i,76»  59,930  150,000  10     16,760 

Pawsons  and  Leafs  ..  (Dec.)       —  34.980  nil       fii/-  44,150 

Do Prev.      —  35.850  nil  t9/-  37.94° 

Scot.  Trust  of  Ceylon  (Aug.)  31,220  12,260  8,000  20       1,990 

Do Prev.  19800  16,090  6,000  13       1,730 

Sheffield  Dist.  Rly.   ..(Dec.)  18,550  12,270  —  ?J        770 

Do Prev.  16,530  10,840  —  2|        340 

South  Staffs  Water  ..  (Dec.)i85, 470  29,320  —  4     10,040 

Do.    I Prev. 184,600  44,820  —  6J    9.330 

Stepney  Spare  Wheel  (Sept.)      —  15.540  20,000  10      9,800 

Do Prev.       —  14,160  15,000  10      8,oco 

Sutton  District  Water  (Dec.)  18,330  8,340  22.000  11       3,490 

Do Prev.  18,000  7.370  21.850  II       3,220 

Yorks  Electric  Power  (Dec.)  41,780  33,260  32,000  5      4.390 

Do Prev.  35,820  29,110  20,000  2     26,800 

York  Gas (Dec.)      —  14.520  23240  72/-    8,370 

Do Prev,       —  15.560  22,750  72/-    9,650 

•  Including  4  per  cent,  in  bonus  shares,  f  P*''  £^  share. 


The  accounts  of  the  Government  of  British  Columbia  for  its 
past  fiscal  year  show  a  revenue  of  ;^  1,381, 356  and  an  expendi- 
ture of  /i, 81c, 863.  The  deficit  has  therefore  been  brought 
down  to  £43^,scif>-     The  year  before  it  was  ,^718,000. 

The  assets  of  enemy  subjects;  in  South  Africa  vested  in  the 
Custodian  of  Enemy  Property  are  said  to  total  ;f9. 239,000,  and 
of  this  ;^  1,079,000  represents  mining  dividends.  Enemy  share- 
holders number  26,166  in  various  South  African  companies,  and 
the  assets  of  the  German  missions  are  valued  at  ,1^750,000. 


Febrlary   i6,   1918. 


XTbe  investors'  "Keview. 


177 


PUBLIC     INCOME     AND    EXPENDITURE. 

The   following   are   the   receipts   into   and    issues   out     of    the 
Exchequer  between  April  1,  1917,  and  Keb  uary  9,  1918  : — 


Estimate 

for  the 

Year 

1917-1918. 

(See  note.) 


70,750,000 

34,950,0)0 

29,000.000 

8,000,000 

2,600,000 


224,000,000 
200,000,000 

400,000 
33,700,000 

600,000 

7,500,000 
27  100  no  • 


638,600, oo>  I 


Balances    in    Exchequer   on 

April  I— Bank  of  EnglAnd  . . 

Bank  of  Ireland    . . 

Revenue. 

Customs  ; 

Excise 

Estate,  &c.,  Duties 

Stamps 

Land  Tax 1 

House  Duty     J 

Property  and  Income  Tax  and 

Super  Tax    , , , . 

Excess  Profits  Dulies,  &c 

Land  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    froo.    Sundry 

Loans,  &c 

Miscellaneous 

Revenue  

Total,  including  Balance  .. 

Other  Receipts. 

Repayment  of  Advances  for  Bullion   

Repayment  of  Advances  for  Interest  on 
Exchequer  Bonds  under  the  capital  Expen- 
diture (Money)  Act,  1904    

UnHerT  legraph  (Money)  Act,  1913 

Under  Post  Oftic-  (Londonl  Railway  Act,  1913 

Under  Military  Works  Acts,  1^97  to  1903 

Under  Puolic  Bail  ings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For   Treasury  Bills  (tor  supply) 

For    Exchequer    Bonds    under   the    Capital 

Ex  enditure  (Money)  Act,  1904 
For    Exchequer    Bonds    under    the    Cunard 

Agreement  (Money)  Act,  1904  

For  44  per  C-nt.  War  Loam.  1925-1945 

For  5  per  Cent.  Exchequer  Bonds,  igrp  ... 

For  5  per  Cent.  Exchequer  Bonds.  1920    

fo>  5  per  Cent.  Exchequer  Bonds,  1921  ... 

For  5  per  Cent.  Exchequer  Bonds,  1922   

i'or  6  per  C"nt.  Excheq  jer  honds,  1920    ... 

For  War  Expenditure  Certificates   

For  Wat  Savings  Certificates 

For  other  Debt  created  under  the  War  Loan 

Acts,  1914-1917 

JFor4  per  cent.  War  Loan,  1929-1942,  and  5  per 

Cent.  War  Loan,  1929-1947    

For  National  War  Bonds    

East  Africi  Protectorate  Lo^n  :    Repayments 

o  1  account  of  Principal  and  Interest 

■Cunar     Loan  :  Repayment  on  a/c.  of  Principal 

;Suez  Canal  Drawn  Shares 

"China  In  lemnity   

Temporary  Advances— Ways  &  Means  (includ- 
ing Treasury  Bills  ^345,000,000  in  1916-1917) 
Totaf 


Total  Receipts 

into  the 

Exchequerfrom 

April  I,  1917,  to 

Feb.  9,  1918 


£ 

25,209,947 
1,225,912 


26,4^5.859 


60,9  2,000 
^2,237,000 
26,928,000 
6,804,000 

1,540,000 


r493'6,ooo 
I77,5't2,ooo 

53  .0(X) 
28,650,000 

560,000 

1.925,975 
47,^2^,7*3 


5^,853,708 


NoTB.— E-timate  as  in  House  of  Commons 
plementary  Grants. 


561,289,507 

2,180,000 


169,818 

100,000 
68,000 


-  394.500 

2,443,811,000 


82,270,400 
48,000 

43,300,000 

623,818,775 

■68,082,6  0 
*344, 861,000 

5,940 

130,000 

12,797 

867.103,500 


Total  Receipts 

into  the 

Exchequer  from 

April  1,   1916,  to 

Feb.  10,  1917. 


Expenditure 
and  other  issues. 


£ 
25,111,065 
463.941 


25.575.006 


59,841,000 

47,315.000 

26,826,000 

6,506,000 

1,510,000 


124,144,000 
111,322,000 

341,000 
28,150,000 

53  '.000 

5.t54,238 

I2,2t7,Oi4 


Estimate  for 

the  Year 

iqi7-i8. 

(See  note.) 


_424^I7_ȣ282 


5,i38,9i'.,..i7 


44y.75i,288 


91,370 

210,000 
I'-O.OOO 

8,8 '4 

8,000 

74  600 

[,765,933,000 

3,087,600 


AH 

31,222,000 
84,140.469 

62,468.&o6 

160,831,000 
29,878,500 
50,050,000 

244,904,292 


5.940 

130,000 

10,795 

400,000 

86^,703,000 


Expenditure.  £ 

Permanent  Charge  tif  Debt  ..  17,000,000 

Interest,  &c.,  on  War  Debt ,.         194,500,000 
Payments  to  Local  Taxation 

Accounts,  &c 9,700,000 

Other      Consolidated      Fund 

Services    1,695,000 

Supply  Services    2.543.830,000 

Expenditure    2,76  -.725  000 

Other  Issues. 

For  Advances  for  Bullion 

F«r   Advances    for    Interest    on    Exchequer 

Bonds    under     the     Capital     Expenditure 

(Money )  Act,  19 14    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903  . , 

Under  Housmg  Act,  1914 

For  Treasury  Bill-  for  Supply 

For    Exchequer    Bonds    under    the    Ca  ital 

Expenditure  ( VIoney)  Act,  1904    

For  Exchequer  Bonds  u-ider  the  CunardAgree- 

me  t  (Moneyl  Act,  1904 

For  War  Loan-,  Eichequer  Bonds,  &c. .under 

Section  ,4  of  Finance  Act,  1917 

For  ottier  Debt  un.  er  the  War  Loan  Acts, 

1914  to  1917 

For  Depreciation  Fund  under  t"he    Finance 

Act,  1917 

Old     Sinking    Fund,     1907-8,    issued    undi 

Sectiun  9  of  the  Finance  Act,  igo8 

Old    Sinkint^    Fund,     ]9;0-ii,    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  (b) 

Old  Sinking  Funds,  19x1-12  and  1913-14,  is-^ued 

urider    the    Anglo  -  Persian    Oil    Company 

(Acquisition  of  Capital)  Act,  1914  

East  Africa  Protectorate  Loan  Repayments — 
Issued  to  reduce  Debt  under  thj  Finance 

Act,  .911    

Cunard  Loan  Re  ayts.— Issued  to  reduce  Debt 

under  the  Cunard  *greemt.  (Moneyi  Act,  1904 

Suez  Canal  Drnwn  Shar  s— Issued  to  reduce 

D.  bi  under  the  Finance  Act,  1898 
China     Indemuity — Issued    to    reduce    Debt 

under  the  Finance  Act,  1906    

Temporary  Advance^  repaid — Ways  and  Means 
(incldg.  Treasury  Bills  £"344,817,000  in  1916-17) 


Total  Issues 
out  of  the  Ex- 
chequer to  meet 
payments  from 
April  I,  1917,  to 
Feb.  9,  1918. 


£ 

17,006,991 
155.147.500 

7,093,566 

1,508,098 
2."9,555,687 


2,300,311,842 


Balances  in  Exchequer- 
Bank  of  England 

Bank  of  Ireland 

Total ...... 


1918. 
Feb.  9 

<3. 376.946 
2,4M,572 


1917. 
Feb.  10 

£ 
20,427,830 
2,608,586 


169,818 
115,000 
95.000 


394,500 
11,842,309,000 


1,300,000 
11,006,509 

80,929,570 

30,i39,<23 
10,  coo 
20,00c 

949,000 

5.940 

130,000 


852,849.00c 


;  Total  Issues 
out  of  the  Ex- 
chequer to  meet 
payments  from 
April  I,  1916,  to 
Feb.  10, 1917. 


18,003, 3C0 
102,063,425 

1,699,83? 


1,825,685,057 


5. '23. '54,399 


'5  79'.5i8 


5.i38,945,9'7 


3,430,000 


91,870 
210,000 

20C,000 

8,008 

8,000 

98,900 

1,423,043,000 

3,087,600 


975.705 

9,63«.957 

94,000 
53.160 

230,000 

5.940 

130,000 

10,795 

400,000 

464,6i'',oa<i 


3.732.»43  492 


23.036,416 


3,755.279,908 


3.7')5.279.'<°8 


Prfper  No.  75  of  1917,  and  bup 
'Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account, 


Memo. — Treasury  Bills  outstanding  on  Feb.  9, 1918  ♦^i.oes, 447,000. 

♦  Includes  jf  248,000,  the  proceeds  of  which  wer-  "ot  carried  to  the  Exchequer 

within  the  period  of  the  account,  besides  an  amount  (not  yet  ascertained  and 
brought  to  account)  for  Bills  tendered  as  subscription  to  National  War  Bonds. 

t  Including  part  payment  of  Bill«  tendensd  as  subscriptions  to  National  War 

Bonds. 


American  Business  Notes. 


I 


Food  authorities  in  the  United  States  are  said  to  be 
aghast  at  the  extent  of  our  food  demands.  They  prob- 
ably have  been  misled  by  the  shortsighted  optimism  of 
our  inexperienced  ministers  and  oflicials.  Anxious,  no 
Joubt,  to  keep  the  minds  of  the  public  from  taking 
alarm,  they  kept  preaching  that  we  had  enough — until 
actual  want  stared  the  nation  in  the  face.  Readers  will 
doubtless  remember  Mr.  Prothero's  benevolent  brag 
about  our  home  resources  which  he  declared  to  be,  in 
his  belief,  suflicient  to  carry  us  through  until  next 
harvest  even  should  the  German  submarines  prevent  all 
foreign  supplies  from  reaching  the  country.  It  was 
dangerous  benevolence  this,  the  kind-hearted  but  rash 
enthusiasm  of  the  unworldly  professor,  and  it  is  lead- 
ing us  towards  domestic  eruptions  not  dissimilar  to 
those  already  cropping  up  in  the  two  despotically  ruled 
■empires  of  Central  Europe.  And  our  demands  for  food 
have  already  reacted  in  the  United  States  .so  powerfully 
as  to  impel  the  authorities  there  friendly,  as  they  are, 
and  anxious  to  stand  by  us,  to  intirhate  that  more 
drastic  food  restrictions  will  have  to  be  imposed  upon 
and  borne  by  their  own  people.  There  is  even  a  hint 
that  food  tickets  will  have  to  be  fallen  back  upon,  all 
which  tells  us  to  be  up  and  doing,  not  only  to  economise 
our  food,  but  to  take  energetic  measures  to  increase  our 
home  production  as  well  as  to  draw  in  surplus  supplies 
from  whatever  part  of  the  world  they  exist.  What  is 
being  done  to  bring  home  the  Australian  grain,  for 
instance,  the  Xew  Zealand  beef  and  mutton,  and  the 
large  stock  of  Argentine  cattle  and  sheep?  Of  cereals 
It  is  to  be  feared  the  Argentine  can  send  us  little,  but 
what  there  is  ought  to  be  made  available,  not  only  for 


our  own  easement,  but  to  help  the  United  States.  Have 
any  ships  been  available  to  bring  home  the  grain,  rot- 
ting and   rat-eaten,   stored  in   Australia? 

It  would  not  be  fair  to  accuse  the  meat-packers  of 
Chicago  of  being  unscrupulous  profiteers.  Probably 
they  have  only  followed  the  usual  lines  of  business,  and 
made  money,  one  might  say,  involuntarily,  by  being 
able  to  sell  always  at  a  profit  in  spite  of  the  high  prices 
paid  for  their  raw  material,  just  because  the  consumer 
was  ever  ready  /to  increase  the  price  he  paid.  We  find 
an  example  in  the  report  of  Swift  and  Co.,  one  of  the 
great  preserved  meat,  or  "packer,"  companies  of 
Chicago.  In  the  year  ended  Septemiber  30  last,  Vice- 
President  Edward  Swift  told  his  shareholders  at  the 
annual  meeting,  the  average  price  of  live  cattle  rose  to 
$8.66  per  cwt.  In  the  previous  year  the  average  was 
$7.21,  and  in  1915  $7.10,  but  the  highest  price  paid  for 
live  stock  in  Chicago  was  $17.90  per  cwt.j  on  Sep- 
tember 19  last,  and  for  hogs  was  $20  per  cwt.,  the 
average  price  for  hogs  in  191 5  having  been  only  $7.09. 
.\s  for  sheep,  they  rose  to  $16  per  cwt.  on  May  12  last 
year,  and  for  lambs  to  $20.60  per  cwt.,  compared  with 
an  average  of  $12.79  ^o''  the  whole  year  1917  and  with 
$7.85,  the  average  for  1915. 

The  price  of  meat  was  high,  said  Mr.  Swift,  but  did 
not  advance  so  rapidly  as  the  price  of  live  stock.  The 
bu.siness  done  seems  to  have  been  exceptionally  heavy, 
and  profitable,  all  the  same,  cattle  deliveries  having 
been  the  largest  in  the  history  of  the  country,  and  often 
it  must  have  seemed  as  if  the  high  price  of  the  live 
stock  must  preclude  the  possibility  of  profit,  at  any 
rate  for  the  packer,  but  it  was  not  so.  "  Prices  have 
advanced  so  rapidly  and  steadily  that  between  the  time 
of  the  slaughter  of  animals  and  the  time  of  the  sales 
of  the  resulting  meats  and   by-produots,  the  enhance- 


if8 


XTbe  5npe6tor8'  TRevtew. 


Februarv  i6,   1918. 


ment  of  values  has  been  much  greater  than  we  antici- 
pated. The  total  distributive  sales  of  the  firm,"  Mr. 
Swift  went  on,  "  exceeded  $875,000,000  la.st  year,  as 
against  $575,000,000  in  1915-16."  Higher  prices  have 
been  paid  for  fuel,  supplies,  and  labour.  Wages  have 
been  voluntarily  increa.sed  twice  during  the  year  and 
three  times  .since  February,  1916.  In  mere  labour 
wages  are  now  57.1  per  cent,  higher  than  they  were 
two  years  ago.  Women,  on  the  average,  get  $12.20 
per  week,  with  a  guaranteed  minimum  of  $9,  or  roughly 
£2  to  £2  I2S.  per  week.  With  all  this,  the  profits 
were  magnificent  at  $42,318,000,  which  was  more  than 
twice  the  nett  profis  of  1915-16,  and  .some  four  and  a 
half  times  these  of  1913-14,  and  the  company  paid 
only  10  per  cent,  in  dividend,  which  took  $9,500,000, 
against  8  per  cent,  paid  in  1915-16,  7J  per  cent,  in 
1914-15,  and  7  per  cent,  in  1913-14.  The  surplus  was 
accordingly  $32,818,000.  On  November  25,  1916, 
however,  the  sJiareholders  received  a  "  bonus  cash 
dividend  "  of  33  ^  per  cent,  in  order  to  di.sper.se 
$25,000,000  of  the  then  accumulated  surplus  earnings. 
Meat  packing  is  a  prosperous  occupation. 


Insurance    News. 


A  falling  off  was  shown  in  the  volume  of  new  busi- 
ness transacted  by  the  Scottish  Life  .'\ssurance  Co.  in 
1917,  the  a.ssuranoes  granted  being  ;^ir2,28o  less  than 
in  1916  at  £435<7i7,  the  nett  new  business  retained 
•jemg  ^414,967— a  reduction  of  ;^57,o8o.  The  nett  life 
premium  income  at  ;^244,568  showed  an  increase  of 
;^i6,279.  Notwithstanding  the  claims  due  to  the  war, 
the  mortality  experienced  was  low,  claims  by  death,  in- 
cluding war  claims  of  ;^27,284,  amounting,  with  bonus 
additions,  to  ;^86,099.  The  life  funds  at  the  close  of 
the  year  amounted  to  ;^2, 466,880  ;  the  addition  during 
the  year  was  ;^i64,58o,  being  a  greater  increase  than 
has  been  made  in  any  previous  year.  No  portion  of 
the  company's  funds  is  invested  on  the  Continent  of 
Europe  with  the  exception  of  French  War  loans  issued 
in  this  country.  The  usual  dividend  of  10  per  cent., 
tax  free,  is  to  be  paid. 

During  last  month  the  cost  of  the  principal  fires  in 
the  United  Kingdom  is  estimated  at  ;^4I2,500,  and  the 
month  was  the  most  costly  since  February  of  last  year, 
when  the  total  amounted  to  ;.^547,500.  A  large  num- 
ber of  fires  contributed  to  the  total  for  January,  which 
showed  an  increase  of  ;^i65,ooo  over  the  total  for  the 
previous  month,  and  an  increase  of  ;^3 1,000  over  the 
figures  for  the  corresponding  month  last  year. 

An  association  has  been  formed,  to  be  known  as  the 
British  Insurance  Association,  with  a  membership  of 
123  companies,  representative  of  offices  established  in 
the  United  Kingdom  and  the  British  Empire.  The 
chief  objects  of  the  new  association  are  the  protection, 
promotion,  and  advancement  of  all  classes  of  insurance 
business,  including  the  taking  of  such  concerted  mea- 
sures as  may  be  deemed  expedient  whenever  the  busi- 
ness transacted  by  members  of  the  association  may  be 
affected  by  the  action  or  proposed  action  of  any  Govern- 
ment or  other  authority  at  home  or  abroad.  The  chair- 
man is  Mr.  Roger  Owen,  general  manager  of  the 
Commercial  Union,  with  Mr.  A.  C.  Thompson,  general 
manager  of  the  Prudential,  as  deputy-chairman.  Lead- 
ing underwriters,  actuaries,  and  general  managers  form 
the  General  Purposes  Committee. 

At  the  meeting  of  the  Indemnity  Mutual  Marine 
Assurance  Co.  the  chairman  explained  a  profit-sharing 
scheme  which  has  been  prepared  by  tbe  directors  with 
the  object  of  forming  a  fund  to  be  distributed  among 
members  of  the  staff  in  recognition  of  long  and  efficient 
sert-yice.  I  he  working  of  the  scheme,  which  is  an  ex- 
periment, the  period  of  its  duration  having  been  fixed 
at  five  years,  will  be  watched  with  interest 


The  New  South  Wales  Government  estimates  that  the  loss 
caused  by  last  year  s  strike  amounted  to  between  ;<:3,5oo,ooo 
and  ^4000,000.       The  toUl   amount  lost   in  wages  is  L     at 

;(  1,700,000.  '^ 


The  Course  of  Prices  After  the   War. 

.Many  times  arc  we  asked  to  predict  what  course 
prices  of  securities  are  likely  to  follow  after  the  war, 
and  always  we  shrink  from  the  effort.  It  would  indeed 
require  a  gift  of  prophecy  exceeding  that  allotted  to 
Highlanders  endowed  with  "second  sight"  to  form 
any  reliable  forecast.  Many  people  look  for  a  "  boom  " 
when  peace  is  announced,  and  buy  their  favourite  stocks 
on  that  assumption.  Others  are  equally  confident  that 
peace  will  be  followed  by  a  general  slump,  and  they 
have  at  least  equally  good  grounds  for  backing  that 
opinion.  But  how  would  it  be  if  no  formal  peace  at  all 
should  be  declared?  It  is  possible  that  the  besotted 
Germans  and  their  haughty  taskmasters  may  imitate 
Trotsky  and  Lenin,  and  decline  to  negotiate  at  all,  pre- 
ferring to  die  rather  than  come  down  from  their  atti- 
tude of  insolent  contempt  and  defiance.  TTiat  is  a 
possibility  which  the  speculator  should  take  into  account 
as  well  as  the  others.  Its  realisation  might  mean,  for  a 
season  at  least,  "  no  prices  "  at  all  for  any  security. 

Leaving  such  problems,  let  us  summarily  review 
what  is  practically  to  be  expected  as  the  result  of  the 
enormous  upheaval  and  dislocation  of  industry  and 
trade  cau.sed  by  the  war?  Undoubtedly  all  the  in- 
dustries that  have  been  engaged  in  war  material  pro- 
duction, in  ministering,  no  matter  in  what  capacity, 
to  the  war  necessities,  must  cxjjerience  a  sharp  recoil 
when  the  fighting  ends.  Makers  of  guns,  tools,  explo- 
sives and  war  furniture  of  every  description  will  find 
their  occupations  gone,  or  only  kept  alive  by  the  re- 
sumption of  other  kinds  of  work  designed  to  satisfy 
the  demands  of  a  world  at  peace. 

Take  the  manufacturer  of  motor  lorries,  for  example. 
.At  present  his  business  is  wholly  concerned  with  the 
fulfilment  of  military  orders,  or  almost  wholly.  When 
the  war  ends  not  only  will  the  military  demands  cease, 
but  for  some  considerable  time  there  will  be  an  inde- 
finitely large  stock  of  war  lorries  to  be  thrown  on  the 
market  to  meet  the  wants  of  farmers  and  traders.  For  a 
time,  therefore,  the  manufacture  of  such  machines  may 
have  to  be  suspended  altogether,  although  in  the  long 
run  it  is  sure  to  revive,  and  as  the  world  recovers  from 
the  war  devastation  it  may  become  more  solid  than 
ever.  But  the  interregnum  is  sure  to  be  trying  for  the 
holders  of  such  a  company's  shares. 

It  will  probably  be  much  the  same  in  time  with  the 
shipbuilding  industry,  with  the  spinners  and  weavers 
in  the  woollen  and  cotton  industries,  and  with  other 
branches  of  human  activity  now  repleted  by  war  wants, 
but  ordinarily  devoted  to  the  supply  of  the  requirements 
of  civilisation  and  peace.  When,  therefore,  a  man  of 
means  desires  to  buy  some  share  of  which  he  thinks  well 
and  worth  holding  until  after  the  war,  he  should  look 
to  those  industries  which  are  bound  to  be  of  permanent 
utility  if  civilisation  is  to  survive  at  all,  but  should  never 
buy  irashly,  because  the  years  immediately  following  the 
return  of  peace  are  certain  to  be  trying,  sometimes 
almost  unbearably  so.  All  trades  connected  with  the 
production  of  food,  devoted  to  the  supplies  of  clothing, 
and  the  gratification  of  the  innumerable  essential  wants 
of  civili.sed  communities,  are  the  ones  to  select  for 
circumspect  investment. 

At  the  same  time,  there  are  sundry  broad  considera- 
tions which  must  not  be  left  out  of  sight,  such,  for  in- 
stance, as  the  effect  of  currency  inflation.  That  will 
be  signalised  by  high  prices,  and  prices  inflated  by  a 
depreciation  of  the  currency  cannot  be  brought  back 
again  to  anything  approaching  the  pre-war  level  until 
the  redundant  currency  has  itself  been  reduced  to  the 
solidity  of  a  genuine  gold  basis.  Another  considera- 
tion has  reference  to  the  situation  of  our  foreign  trade. 
It  cannot  be  so  large  after  the  war  as  it  was  before  for 
a  variety  of  reasons,  chief  among  which  are,  first,  the 
inability  of  every  war-exhausted  country  to  buy  goods 
abroad  to  the  pre-war  extent  ;  and,  secondly,  because 
that  inability  will  be  intensified  bv  the  absence  of 
stimulants  in  the  shape  of  loans  raised  abroad.  Austrian 
bankers,  it  is  said,  having  no  dream  of  indemnities  to 
be  wrung  from  the  "  conquered  "  to  console  them- 
selves with  after  the  Prussian  manner,  think  that  the 


t 


Februarv   i6,   1918. 


XTbe  Jnvestors'  IReview. 


179 


only  way  to  save  the  Habsburg  Empire  from  bank- 
ruptcy and  eclipse  will  be  to  raise  a  great  foreign  loan 
when  peace  comes  back.  They  might  as  well  try  to 
pump  all  the  water  out  of  the  Danube.  No  "  foreign 
loan  "  will  be  possible  for  Austria  or  for  any  other 
"Power."  liach  of  the  Allies  will  have  to  live  on  home 
resources,  we  as  much  as  any,  and  that  w  ill  for  many  a 
year  lessen  the  volume  and  value  of  exports  in  every 
country.  Still  further  to  intensify  this  restriction,  our 
necessities  will  compel  each  of  us  to  produce  more  at 
home,  as  we  are  now  belatedly  and  in  haste  endeavour- 
ing to  do  in  these  islands  of  ours,  and  accordingly  the 
enormous  demand  on  the  shipbuilder  so  usually  assumed 
is  likely  to  be  absent  for  long  after  the  war  is  past 
and  gone. 

This  is  but  the  merest  introduction  to,  and  outline  of, 
a  far-spreading  mystery  of  national  recuperation  that 
cannot  be  fathomed,  but  we  shall  be  glad  of  help  in 
probing  it  further.  The  only  advice  we  can  give  mean- 
while is  to  walk  warily,  to  avoid  commitments  beyond 
one's  strength,  and  never  to  be  tempted  to  speculate  on 
the  assumption  that  outbursts  of  great  prosperity  wi'l 
ensue  on  the  declaration  of  peace. 


DIVIDENDS     ANNOUNCED. 


Australian  Agricultural  Co. — Interim  o£  4s.  6d.  per  share,  free 
of  tax,  payable  March  8,  same  as  a  year  ago. 

Anglo-Sumatra  Rubber  Co. — Interim  for  year  ending  May  31, 
1918,  of  10  per  cent.,  less  tax,  payable  on  February  28,  the  same. 

Baxters  Leather  Co. — Final  of  12  per  cent.,  making  15  per 
cent,  for  1917,  the  same;  ;^4,ooo  to  reserve,  against  ^f  10,000; 
forward    ^^3,117,    against   ^^6,196. 

Bank  of  5few  South  Wales.— Interim  quarterly  at  the  rate  of 
10  per  cent,  per  annum,  payable  Feb.  26,  the  same  as  a  year 
ago. 

Bovril,  Ltd. — For  the  past  half-year  on  ordinary  shares  at 
rate  of  9  per  cent,  per  annum  (making  7  per  cent,  for  year),  less 
tax,  and  4  per  cent,  on  deferred  shares  for  1917,  free  of  tax, 
against  3^  per  cent,  the  same. 

Brecon  and  Merthyr  Railway. — 4  per  cent,  per  annum  on  first 
preference,  and  2  per  cent,  per  annum  on  second  preference 
.stock.  To  reserve,  ^^10,000,  against  ;f  5,000 ;  forward,  ^1,940, 
against  ^2,327. 

Bank  of  British  North  America. — 40s.  per  share,  payable 
April  5,  less  tax,  making  8  per  cent,  for  year,  against  7  per 
cent. 

Charter  Trust  and  Agency. — At  rate  of  2  per  cent,  per  annum 
for  year  to  Nov.  30,  less  tax,  the  same;  £6,^oz  forward,  against 

Cambrian  Railways  Co.— 4  per  cent,  on  "  D  "  debenture  stock, 
;f7,ioi  to  general  reserve  fund,  ;^i2,i7o  forward. 

City  of  Buenos  Aires  Tramways  Co. — Final  is.  3d.  per  share 
(making  5  per  cent,  per  annum,  less  tax)  for  1917,  the  same  as 
for  1916. 

Crossley  Bros. — At  rate  of  7  per  cent,  per  annum  on  ordinary 
shares  for  half-year  to  December  31,  the  same  as  a  year  ago. 

Eastman  Kodak  Co.  of  New  Jersey.— An  extra  y'/i  per  cent, 
has  been  declared  upon  the  common  stock,  in  addition  to  usual 
quarterly  dividends. 

Furness  Railway.— For  half-year  ended  December  31,  at  rate 
oi  2%  per  cent,  per  annum  on  ordinary  stock,  carrying  forward 


2>i  per 


I 


;/;^i  1,091,  making  2%  per  cent,  for  1917,  compared  with 
cent.,  with  ^^13,776  carried  forward   for    1916. 

Great  Boulder  Proprietary  Gold  Mines.— gd.  per  share  less 
tax,  payable  March  23,  the  same  as  a  year  ago.  ' 

Great  Western  Railway.— For  past  half-year  of  3?  per  cent 
making  5J  per  cent,  for  year,  the  same  as  for  1916 ;  ^400  000' 
against  ^^^200,000  to  reserve;   ;^248,ooo,  against  ^f 218,000,    for- 

Great  Central  Railway.— 2^  per  cent,  for  year  on  the  c  per 
cent  preference  stock,  1894,  against  2  per  cent.,  carrying  for- 
ward about  ;^8,ooo,  against  ^8,367.  ® 

General  Hydraulic  Power  Co.— For  half-year  ended  Dec  11 
cf  2  per  cent,  on  ordinary  stock,  making  4  per  cent,  for  the  year, 
carrying  forward   £^,oic,.  ^       ' 

Isle  of  Wight  Central  Railway.-/3  ,os.  per  cent,  on  the 
hrst  preference  stock  for  1917,  carrying  forward  /808 

James  DunJop  and  Co.— 10  per  cent,  per  annum  up  to  Dec.  5i 
on  ordinary  shares,  the  same  as  a  year  ago. 

John  Anderson's  Royal  Polytechnic— On  ordinary  shares  at 
rate  of  10  per  cent,  for  year  to  Jan.   19,  against  7I  per  cent. 

London  and  North-Western  Railway.— Final  of  3*  per  cent 
making  6  per  cent,  for  year,  the  same  as  for  1916. 

London,  Chatham  and  Dover  Railway  Co.— ^^2  los  per  cent 
on  arbitration  preference  stock,  making  ^4  los.  per  cent  for 
1917  ;  forward  ^^83,800,  as  compared  with  ;^83,497. 

Manchester  Ship  Canal.— 2s.  6d.  per  share  on  ordinary  shares 
or  li  per  cent.,  against  i  per  cent,  for  1916. 

Mercantile  Investment  and  General  Trust  Co.— At  the  rate  of 
7  per  cent,  per  annum  on  ordinary  stock  for  half-year  ended 
Jan.  31,  igi8,  making  6  per  cent,  for  the  year,  the  same  as  last 
year;  forward,  ^47,982. 

Mather  and  Plattv— On  the  ordinary  shares  at  rate  of  17J  per 


cent,  per  annum,  less  tax,  and  less  interim  of  5  per  cent,  already 
paid. 

Newcastle-upon-Tyne  Electric  Supply  Co. — Final  si  per  cent, 
on  ordinary  shares,  making  8  per  cent,  for  past  year,  against  7 
per  cent,  for  igi6. 

North  British  Railway. — J  per  cent,  on  deferred,  against  \ 
per  cent,  for  1916 ;  jf  20,000  is  again  placed  to  reserve ;  forward 
^^36,300,  against  ;^37,949- 

North-Eastern  Railway. — For  past  half-year  of  3}  per  cent., 
making  6^  per  cent,  for  year,  the  same  as  for  1916 ;  ;£296,58j 
forward,  against  ^^270,051. 

Nottingham  and  Grantham  Railway  and  Canal  Co. — Half- 
yearly  £2  OS.  lod.  per  cent.,  payable  Feb.  28. 

Pabbojan  Tea  Company. — Second  interim  of  6^  per  cent., 
less  tax,  for  1917,  payable  Feb.  28,  same  as  a  year  ago. 

Price's  Patent  Candle  Company. — For  the  half-year  ended 
Dec.  31  of  £1  5s.  per  share  and  a  bonus  of  12s.  6d.  per  share, 
less  tax.     A  year  ago  the  bonus  was   7s.   6d. 

Pindenioya  Rubber  and  Tea  Estates. — Interim  for  1917  of 
an  actual  5  per  cent.,  less  tax  payable  March  i,  the  same  as  last 
year. 

Railway  Investment  Company. — On  deferred  stcck  of  15s.  2d. 
per  cent.,  less  tax,  for  year  ended  Jan.  31,  payable  March  6. 
\  year  ago  the  dividend  was  i6s.  id.  per  cent. 

Sungei  Buloh  Rubber  Company. — Second  interim  of  15  per 
cent.,  less  tax,  on  account  of  1917,  payable  on  March  5,  against 
20  per  cent. 

South  London  Electric  Supply  Corporation. — At  the  rate  of 
5  per  cent,  per  annum  for  1917,  the  same  as  for  1916;  ;f2,5oo 
to  reserve  contingency  fund,  against  nil  ;  forward,  ;j3,i5o, 
against   .^3,053. 

Southern  Punjab  Railway  Company. — Final  7  per  cent,  (less 
English  income-tax  at  3s.  lo^d.  in  the  £),  making  a  total  of 
12  per  cent,  for  year  ended  Sept.  30,  the  same  as  a  year  ago. 

Stratford  and  Midland  Junction  Railway. — £1  7s.  6d.  per 
cent,  on  ordinary  stock  for  191 7,  the  same  as  for  1916,  carry- 
ing forward  £m,  against  .1^350. 

Sheffield  District  Railway. — Final  £1  15s.  per  cent.,  payable 
Feb.  21,  on  ordinary  shares,  making  £i  5s.  per  cent,  for  the 
year,  compared  with  £2   15s.  per  cent,  for  igi6. 

South-Eastern  Railway. — F'inal  £^  5s.  per  cent,  on  un- 
divided ordinary  stock,  making  £t,  15s.  per  cent,  for  1917; 
^5  per  cent,  on  preferred  ordinary  stock,  which  brings  up  the 
amount  for  the  year  to  the  full  dividend  of  6  per  cent.  ;  and 
;^i  los.  per  cent,  on  the  deferred  ordinary  stock  lor  the  year. 

Spratt's  Patent.— Final  is.  3d.  per  share,  making  2S.  3d.  per 
share  for  the  year,  less  tax,  the  same  as  for  igi6. 

United  States  Debenture  Corporation. — Final  on  the  ordinary 
shares  of  is.  per  share,  less  tax,  making  10  per  cent,  for  the 
year,  the  same  as  for  1916. 

Van  den  Berghs. — Interim  of  10  per  cent.,  actual,  payable 
Feb.  20. 

Walter  Scott. — Interim  of  is.  a  share  on  ordinary  shares, 
the  same  as  a  year  ago. 

Wolseley  Sheep  Shearing  Machine  Company. — Interim  of  5 
per  cent.,  less  tax,  for  year  igi7,  payable  on  Feb.  28. 


The  Week  in  Minos. 


Although  business  has  not  been  very  active  during  the  past 
week,  a  number  of  striking  movements  have  occurred  in  the 
Mining  markets.  The  South  African  market  received  something 
like  a  shock  early  in  the  week,  when  it  was  learned  that  last 
month's  heavy  rains  had  flooded  mines  on  the  Central  Rand 
and  seriously  affected  both  outputs  and  profits.  For  instance, 
the  ferreira  Deep's  profit  for  January  dropped  from  ;^i8,7g9 
to  ^1,563,  the  Durban  Deep's  from  ;f 7,038  to  ^2,118,  the 
Robinson's  from  £i(>,<)o^  to  ;f 8,632,  and  the  Village  Deep's  from 
;^i 5,641  to  ^2,110.  On  Wednesday  the  Rhodesian  department 
fell  into  a  flabby  condition  on  news  that  the  new  Gaika  reef 
had  petered  out. 

South  and  West  Africans. 

Movements  on  balance  in  the  South  African  market  were 
generally  against  holders,  but  the  falls  were  slight.  City  Deeps 
have  fallen  A  to  3  7-32,  Luipaard's  Vlei  is.  to  3s.  6d.,  and 
South  African  Gold  Trusts  gd.  to  25s.  3d.,  despite  the  increase 
in  dividend.  News  that  water  had  been  struck  in  No.  3  shaft 
caused  Brakpans  to  decline  %  to  5,  and  C.M.S.  to  27s.  gd. 
f^eduld,  however,  have  risen  to  2  3-32 ;  at  December  31  the  ore 
reserves  amounted  to  2,200,000  tons,  valued  at  31s.  gd.  per  ton, 
an  increase  of  50,000  tons  in  quantity  and  of  5d.  in  value  on 
the  year.  New  Modders  have  relapsed  %  to  23^,  and  New 
Kleinfonteins  at  20s.  6d.  and  Rand  Selections  at  41^  are  also 
lower.  Diamond  shares  have  met  with  support,  De  Beers 
deferreds  rising  %  to  135^.  In  the  Rhodesian  section,  Gaikas 
relapsed  rather  heavily  to  ^  on  a  cablegram  reporting  that 
the  new  pay  shoot  was  only  205  feet  long,  and  was  unpayable 
beyond  that  point.  Lonely  Reefs  reacted  to  36s.  3d.  in  sympathy, 
and  Falcons  at  26s.  6d.  and  Chartereds  at  15s.  3d.  also 
weakened.  West  African  shares  have  been  active,  notably  the 
low-priced  issues,  but  Ashanti  Goldfields  have  also  improved 
to  21S.  3d. 

Copper  and  Miscellaneous. 

Copper  shares  have  moved  irregularly.  Mount  Lyells  have 
spurted  nearly  2s.  to  28s.  gd.,  and  Poderosas  at  3X  and  Cape 
preferreds  %  to  2%.    Mount  Hampdens  have  relapsed  is.  6d.  to 


i8o 


tTbe  3nve8tor8'  IRevtew. 


February  i6,  191S. 


30s.  Gd.,  and  Namaquas  J^  to  2)^.  Broken  Hill  shares  have 
been  active  and  strong,  especially  Proprietarys,  which  on  the 
increased  profits  for  the  past  year  have  risen  3s.  3d.  to  60s.  3d. 
Block  Tens  have  advanced  is.  (jd.  to  30s.,  and  British  is.  3d. 
to  38s.  6d.  Despite  the  rise  in  the  price  of  the  met.il  to  the 
record  level  of  /315  los.  per  ton.  Tin  shares  have  not  shown 
the  same  degree  of  buoyancy  as  in  previous  weeks,  and  the 
market  looks  tired.  Siamese  Syndicates,  however,  have  risen 
732  to  3%.  The  various  Malayan  tin  mining  companies  have 
formed  a  Malayan  Chamber  of  Mines  to  protect  their  interests. 
Its  constitution  is  on  much  the  .same  lines  as  similar  bodies 
in  other  mining  fields.  South  Croftys,  the  report  of  which  is 
expected  shortly,  have  relapsed  is.  3d.  to  30s.  .jd.  Kintas  have 
improved  to  2,\  on  the  report.  Indian  gold  shares  were  sup- 
ported on  the  award  of  a  27H  per  cenit.  datum  line  for 
excess  profits  duty  purposes,  which  is  5  per  cent,  higher  than 
for  Rhodesian  gold  mines.  Mysores,  however,  have  been  ex- 
ceptionally dull,  and  are  ^  lower  at  3,  on  the  decision  to  mill 
a  lower  grade  of  ore.  Burmas  have  risen  }i  to  4%  on  active 
buying,  emanating  partly  from  the  north.  Of  the  Americans, 
New  Chuquitambos  have  risen  J^  further  to  23-32.  Russians 
have  weakened  slightly. 


MINING    NEWS. 


Transvaal  Gold  Production. — The  production  of  gold  in 
January  amounted  to  /3, 033, 653,  a  decrease  of  ;f  290, 765  on  the 
same  month  of  last  year.  The  following  table  shows  the  monthly 
production  since  January,  1913  : — 


Month. 

1913- 

1914. 

1915. 

1916. 

1917. 

igi8. 

£ 

f. 

£ 

£ 

£ 

£ 

January    . . 

3,353,116 

2,708,470 

3,037,058 

,344,948 

3.324,418 

3,033,653 

February.. 

3,118,325 

2,66o,iS6 

2,872,406 

3,201,063 

3,063,976 

— 

March  .... 

5,358,050 

2,917,346 

3,202,514 

3.384,121 

3,343.363 

— 

April     .... 
VCay 

3.334i3^» 

2,904,92» 

3,160,-51 

3.205,643 

3,155,121 

— 

3373,998 

3,059,340 

3,243.347 

3.303,377 

3,310,618 

— 

lune 

3,173,382 

3,049  558 

8,208,224 

3,235,'67 

3,227,101 

— 

July  

2,783,917 

3. "1,39' 

3,272,^58 

3,232  891 

3,219,094 

— 

August.... 

3,09!.75« 

3,024.037 

3,307,975 

3.318,116 

3.214,079 

— 

September 

2,999  686 

2,982,630 

3,299,423 

3,277,408 

3.'35  837 

— 

October   . . 

3,051,701 

3,Ii6,754 

3,388,122 

3,365.642 

3,191,279 

— 

November 

2,660,788 

3,040,677 

3,317,534 

3,326,253 

3,070,426 

— 

December 

2,857,938 

2,952,7J5 

3,317,949 

3  289,705 

3,068,639 

— 

Total.. 

37,358,040 

35,588,075 

38,627,461 

39,484.934 

38,323,921 

3,033,653 

MvsoHE. — Owing  to  shortage  of  labour  and  raining  supplies 
development  work  has  been  restricted,  and  the  opening  up  of 
fresh  ore  has  not  kept  pace  with  ore  extraction.  Consequently, 
to  maintain  the  average  milling  grade  of  the  year  1917,  it  would 
be  necessary  to  encroach  upon  the  richer  sections  of  the  mine  to 
an  extent  which  seems  undesirable  to  the  board.  It  is  therefore 
proposed  to  maintain  the  tonnage  crushed  at  the  present  figure, 
but  to  treat  a  larger  proportion  of  low-grade  ore.  For  January 
the  output  of  gold  was  thus  1,000  ozs.  below  the  monthly 
average  last  year.  Notwithstanding  the  limited  scale  of 
operations,  some  very  promising  points  are  being  actively 
prosecuted  in  the  lower  levels  of  Ribblesdale's  Mine,  and  the 
improvements  in  this  important  and  deepest  section  of  the 
property  are  being  well  maintained.  Further  allusion  to  this 
will  be  made  in  the  report  to  be  issued  next  month.  The 
lessened  profit  consequent  upon  the  reduction  of  output  will  be 
in  great  measure  offset  by  the  reduction  ic  capital  expenditure 
which  is  now  practicable. 

Broken  Hill  PROrpiETARy. — Cabled  advices  from  Melbourne 
shov?'  that  the  nett  profit  for  the  half-year  ended  May  ;^269,7()o. 
after  deducting  ;f  1(1,897  '^<"'  depreciation,  ^^25,222  for  debenture 
interest,  and  ;£26,5oo  for  sinking  fund.  For  the  half-year  ended 
November  30  the  nett  profit  was  ;^29o,88i,  after  deducting 
;^i6,25i  for  depreciation,  ^^26,582  for  debenture  interest,  and 
;^26,5oo  for  sinking  fund.  These  figures  show  an  improvement 
on  the  corresponding  periods,   despite  the  strikes  of  last  year. 

SoiTH  African  Gold  Trust. — The  report  for  the  year  1917 
shows  that  the  realised  nett  profit  amounted  to  ;£76,334,  as 
against  .^^103, 567  for  1916.  Despite  this  reduction,  the  divi- 
dend is  raised  from  yi  to  10  per  cent.,  tax  free,  and  the  carry- 
forward is  reduced  from  ;/^72,222  to  /^68,oi2.  The  investments 
stand  in  the  books  at  cost  or  under ;  a  list  of  them  is  appended, 
but  it  is  not  stated  whether  there  is  any  depreciation  or  not 
to  provide   for. 

KiNTA  Tin. — During  the  year  ended  June  30  the  output  was 
548  tons  of  black  tin,  which  realised  ,^60,879,  or  ;fiii  per  ton. 
These  figures  compare  with  476  tons  and  254  tons,  jf 48,01 7 
and  ^^22,584,  and  ;^ioi  and  ^^89  respectively  ioi  the  two  pre- 
vious years.  The  profit  for  the  year  was  ^^32,384,  against 
;^'i 7,635,  and  the  available  sum  is  ^'22,653.  A  final  dividend 
of  10  per  cent,  brings  the  year's  distribution  up  to  20  per  cent., 
tax  free,  against  17^  per  cent.,  and  ;f  1,275  '^  carried  forward, 
^gain  £'j,ooo  has  been  written  off  for  construction,  making 
the  total  written  off  ;^44,ooo  to  date.  In  addition,  ^'37,250  has 
been  written  off  other  items,  and  the  balance-sheet  has  now  a 
nice,   clean  appearance. 


A  decrease  was  inevitable  owing  to  the  shortage  of  labour  and 
mining  supplies,  but  it  would  not  have  been  so  marked  had  pro- 
duction not  been  slill  further  restricted  by  serious  floods  on  the 
Central  Rand.  This  caused  a  heavy  shrinkage  in  profits  in  some 
cases.  The  abnormal  rains  having  ceased,  operations  this  month 
have  been  more  normal . 

Native  Laboor  Returns. — A  further  appreciable  improvement 
is  shown  in  the  labour  supply.  The  total  shows  an  increase  of 
3.580,  the  gold  mines  getting  3,684  more  labourers. 


Month. 


January,  1917. . 

February  

March  

April 

ifay  

June  

July    

August 

September  ... 

October 

November  ... 
December  . . , 
January,  igiS. 


Natives 
on  Gold 

Natives 
on  Coal 

Natives 
on 

Total 

Mines. 

188,624 

11,611 

5.591 

205,826 

191,095 

II, .98 

6,268 

208,931 

190,038 

11,494 

6,620 

208,142 

185.975 

11,435 

6,314 

203,724 

180,168 

11,432 

5,805 

■97.405 

175.727 

11,15s 

5.369 

'2!'554 

171.653 

11,381 

5,223 

188,257 

170,817 

11,401 

5,028 

187,246 

17", 334 

ii,6oi 

4.791 

187726 

170,331 

11,841 

4.620 

186,792 

169,083 

11.633 

4.620 

185,336 

172,74» 

11,695 

4.593 

189.OJ8 

176,424 

11,469 

4.715 

192.608 

Wankik  Colliery. — The  profits  of  this  company  for  the  year 
ended  August  31  amounted  to  ;f7i,203  as  against  ;f57,73o.  A 
final  dividend  of  5  per  cent,  is  declared,  making  15  per  cent, 
for  the  year,  as  compared  with  12}^  per  cent.  The  debenture 
debt  has  been  reduced  by  ;£i4,ooo  to  ^^72,000.  Sales  of  coal 
and  coke  amounted  to  310,826  tons  and  70,827  tons  respectively. 
Coal  reserves  are  estimated  to  amount  to  4,300,000  tons.  In 
order  to  provide  funds  for  capital  expenditure,  part  of  which 
has  already  been  incurred,  the  directors  propose  to  increase  the 
capital  to  ;f6oo,ooo.  An  application  will  be  made  to  the 
Treasury  for  permission  to  ofier  324,190  shares  of  los.  each, 
which  will  be  issued  to  holders  at  los.  6d.  each.  The  proceeds 
•will  be  used  to  replace  ;£  104,000  of  capital  expenditure 
provided  for  out  of  profits  and  to  meet  an  additional  outlay 
of  ;^5o,ooo. 

Shahva. — Owing  to  the  increased  cost  of  working  due  to 
war  conditions,  and  in  order  to  obviate  the  necessity  of  unduly 
drawing  on  the  richer  portions  of  the  mine,  the  directors  have 
decided,  until  further  notice,  to  reduce  the  quarterly  dividends 
from  6}{  per  cent,  to  5  per  cent.  If  working  conditions  should 
improve  it  may  be  possible  to  pay  a  bonus  at  the  end  of  the 
year.  Developments  on  the  eastern  portion  of  the  mine  are 
<>pening  up  a  large  additional   tonnage. 


Ans>veps  to  Correspondents. 

*,*  A  Koy  to  these  Answers  will  be  posted  early 
each  fHreek  tor  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  for  six  months,  or 
Ss.  9d,  tor  three  months. 

Deposits  against  future  (queries  may  be  lodgett 
^Ith  the  Publisher. 

A.  B.  Z. — (1)  Ves,  we  think  you  should  hold.  (2)  We  do  not 
think  you  need  hurry  to  sell  since  you  missed  the  top  price. 
The  company  seems  bound  to  do  well  while  the  war  lasts. 
Your  inquiries  did  not  arrive  until  last  Saturday. 

Fiscal. — You  give  us  a  poser.  The  4  per  cent,  is  not  exempt 
from  super-tax,  but  probably  otherwise  a  less  nervous  security 
to  hold  than  the  5  per  cent.,  as  well  as  slightly  more  remunera- 
tive. We  see  no  chance  of  much  rise  in  its  price,  however,  no 
matter  what  happens. 

R.  O.  N. — At  present  they  axe  rubbish,  and  therefore  they 
may  rise  one  day.     But  it  would  be  a  pure  gamble. 

Iron. — If  there  is  a  profit  on  your  holding  you  should  take  it. 

Norman. — It  is  doubtful,  and  the  shares  seem  quite  high 
enough  as  things  are. 

Exor. — If  the  amounts  are  worth  it,  you  mighfTceep  3  and  5; 
the  others  do  not  seem  worth  keeping. 

D.  R.  F. — The  company  has  possibilities  certainly,  and  has 
a  fair  amount  of  cash.     A  fair  speculative  purchase. 

P.  Q.  R. — Since  you  wrote  an  announcement  of  a  bonus  has 
been  published.     You  might  wait  a  little  longer. 

L.  M.  G. — Purchases  for  the  sinking  fund  keep  the  price  up. 
Certainly  sell.     War  Bonds  will  pay  you  equally  well. 

J.  B.  L. — It  seems  a  pity  to  sell  now,  though  we  fear  divi- 
dends cannot  be  resumed  until  after  the  war.  The  company 
has  a  fine  business,  which  should  pay  again  when  conditicms 
are  more  normal. 

F.  C. — Quite  possib'.e.  You  might  wait  for  the  report,  due 
shortly. 

Euan. — Y'es,  it  is  quite  a  reasonable  suggestion.  Prospects 
are  good,  but  we  do  not  think  you  will  see  any  rise  in  divi- 
dend just  yet. 

P.  S.  B. — From  each  one  pound  annuity  a  small  deduction  is 
made  for  expenses  and  a  specified  amount  for  sinking  fund. 
The  latter  accumulates,  and  when  the  annuity  expires  the  value 
of  the  fund*"  will  represent  a  considerable  increase  on  the  pre- 
sent va'.ue  of  each  annuity.  ^ 


February  i6,  1918. 


CTbe  Jnvestore'  IRevtew. 


MINING     RETURNS    FOR    JANUARY. 


181 


Ashanti.— 9,273  tons;  value,  ;f33.253  (Dec,  profit,  ;fi4,092). 

Aurora  West. — 14,000  tons;  profit,  ^2,970  {Dec,  ^3,160). 

Balaghat. — Output,  1,611  ozs.  fine  gold  (Dec,  2,073  ozs.). 

Bantjes. — 24,465  tons  ;  loss,  ;f396  (Dec,  profit,  ^ig). 

Brakpan.— 53,300  tons;  profit,  ^36,947  (Dec,  ^36,947). 

Champion   Reef.— 27,534  tons;  8,012  ozs.  fine  gold  (Dec,  7,863 
ozs.). 

City  and  Sub. — 24, 150  tons;  profit, /8, 034  {Dec,  £6,8yg). 

City  Deep.— 61,500  tons;  profit, /51, 453   (Dec,  ^54, 378). 

Cons.  Langlaagte. — 44,000  tons  ;  profit,  /i5,ii8  (Dec,  /15  013) 

Cons.  Main  Reef.— 53.110  tons  ;  profit,  ^14,858  (Dec,  /iiisgS)' 

Crown.— 165,000  tons;  profit,  ^38, 128  (Dec,  /44,oo5). 

Durban  Rood.  Deep.— 22,700  tons  ;  profit,  /2,ii8  (Dec,  £7  038) 

East  Rand  Prop.— 128,800  tons  ;  profit,  /3,769  (Dec,  ;f  12,762). 

FerreiraDeep.— 31,300  tons;  profit, /i, 563  (Dec,  ;^i8,79'9). 

Gaika.— 4,093  tons;  profit,  ;fi,259  (Dec,  ;f2,3oo). 

Geduld. — 39,800  tons;  profit,  /20, 000  (Dec,  ^19,758). 

Geldenhuis  Deep.— 52,400  tons;  profit,  ^3,192  (Dec,  £3  062) 

Ginsberg.— 13,500  tons,  ;^i3,22i  ;  profit,  ;^548  (Dec,  As?). 

Glencairn.— 20,300  tons;  profit, /516  (Dec,  /512). 

Globe  and  Phoenix.— 6,282  tons  ;  profit,  ;f  19,207  (Dec,  /17  699), 

Glynn's  Lydenburg.— 4, 128  tons  ;  profit,  /2,256  (Dec,  A  034). 

Golden  Horse  Shoe.  — 14,124  tons  ;  profit,  /lo.oCo. 

Gov.  Areas  Mod.— 108,500  tons  ;  profit,  ;f  60,214  (Dec,  AS  559) 

Gt.  Boulder  Prop.— 14,543  tons  ;  profit,  /^43,504. 

Ivanhoe  G.  Corp.— 18,162  tons  ;  profit,   /9,oo6  (Dec,  /o  004) 

Jubitil.— 2,000  tons  ;  511  ozs.  fine  gold. 

Jupiter— 23,800  tons;  profit,  ;^i, 216  (Dec,  ;f4,505). 

Knight  Central.— 26,000  tons  ;  profit,  /490  (Dec,  ;f50o). 

Knight's  Deep.— 98,000  tons;  profit,  ;^2,o52  {Dec,  ^5,004). 

Langlaagte  Estate.— 42,000  tons  ;  profit,  /q,oi6  (Dec  ,  £g  512) 
Lonely  Reef.— 5,080  tons  ;  profit,  ^10,904  (Dec,  /ii,47i)'. 
Luipaards  Vlei.— 19,450  tons;  loss, /i, 500  (Dec,  ;f  18). 
Meyer  &  Charlton.— 12, 000  tons;  profit,  $^29,584  (Dec,  /29,424). 
Modder"B. "-42,500  tons;  profit, /53,6i9  (Dec,  ^^57,339). 
Modder  Deep.— 44,000  tons  ;  profit,  ^51.385  (Dec,  /•47,394). 
Mysore.— 77.488  tons,  15.425  ozs.  fine  gold  (Dec,  17.868  ozs.). 
New  Goch.— 17,524  tons  ;  loss,  /180  (Dec,  profit,  /■i,44o) 
New  Heriot.-i3,40o  tons  ;  profit,  £^.^54  (Dec,  ^5,484) , 
iNew  Kleinfontein.— 62,210  tons;  profit,  /9, 157  (Dec  , /1648s) 
New  Modder.— 54,000  tons ;  ^65,076  (Dec,  /65,656). 
New  Primrose.— 18,300  tons  ;  profit,  i'i,7i5  (Dec,  £1  802) 
New  Unified.— 13,250  tons  ;  profit,  ^3,002  (Dec,  /3,274). 
N   Anantapur.— 4,2ootons;  1,134  ozs.  fine  gold  (Dec,  1,124  ozs.). 
Nourse.— 36,400  tons  ;  ^48,575  ;  profit,  ^1,892  (Dec,  /1.747). 
Nundydroog.— 20,660  tons,  6,328  ozs.  fine  gold  (Dec,  6,962  ozs  ) 
Ooregum.— 30,139  tons;   7,499  ozs.  fine  gold  (Dec,  7,5740zs.). 
1  rmcess  Estate.— 20,000  tons  ;  loss, /538    (Dec,  ^316). 
Randfontein  Cent.— 167,000  tons;  profit,  ;^36,o65  (Dec.  /33,884) 
Robinson  Deep.— 48,600  tons  ;  profit,  ^9,390  (Dec     /'13  180) 
Robinson.— 44,300  tons;  profit, /8,632  (Dec,  /i3,888). 
Roodepoort  United.— 28,065  tons  ;  profit,  /2,265  (Dec,  £2  852) 
Rose  Deep.— 54,100  tons  ;  profit,  /i4.o7o"'(Dec.,  /i6,902)! 
Shamva.— 51.365  tons  ;  profit.  /i3,054  (Dec.  ^14.147). 
faheba.— 5,981  tons  ;  1,419 ozs. ;  loss.  ^2, 322  (Dec.  loss.  ASS). 
Simmer  and  Jack.— 56.300  tons ;  profit.  /17.229  (Dec.  /■21.286). 
Simmer  Deep.— 44.100  tons;  loss.  /i,6i7  (Dec,  profit.  Aloqg)' 
Springs.— 31. 26otons;  profit,  ^31,940  (Dec,  ;^30,336) 
Sub  Nigel.— 10, 100  tons;  ^25,184;  profit, /8,56i  (Dec, /8,5io). 
budan.— 1,900  tons  crushed,  ^3,858  output  (Dec.,  /4,783) 
Transvaal  Gold.— 13,450  tons;  profit,  ^3,680  (Dec,  /io,ii9). 
Van  Ryn.— 35,700  tons  ;  profit,  /9,o27  (Dec.  /9,i86). 
Van  Ryn  Deep.— 44.300  tons;  profit.  /55,04g  (Dec,  A4,oi7). 
Village  Deep.— 48,700  tons  ;   profit. /2,i  10  (Dec.  /i5.64i). 
Village  Main  Reef.— 23,400  tons;  profit.  ^8.737  (Dec.  £8  783) 
Wanderer.— 11.590  tons  ;  profit,  /no  (Dec.  loss.  /251). 
West  Rand.— 35.850  tons;  profit.  /2,oi3  {Dec,  /1.030). 
Witwatersrand. -34,100  tons;  profit,  ^9,384  (Dec.  £i.2,']2i) 
^*''- Deep.— 35,450  tons  ;  loss,  /2,979  (Dec,  loss,  /i,054). 
Wolhuter.— 31,250  tons;  profit,  /7.704  (Dec..  /lo.oSg) 


Tea,  Oil  and   Rubber, 


Last  month's  imports  of  rubber  amounted  to 
176,846  centals,  a  decrease  of  1,780  centals  compared 
with  the  corresponding  period,  but  nearly  30,000  centals 
over  January,  1916.  Exports,  on  the  other  hand, 
reached  only  31,490  centals,  a  decline  of  no  less  than 
96,720  centals  against  la&t  year,  and  of  54,500  centals 
as  compared  with  1916.  Considering  the  large  propor- 
tion of  the  plantation  output  which  we  know  g-oes  direct 
from  the  East  to  the  United  States  these  are  remarkable 
figures.  Certainly  we  have  no  wish  to  lay  undue  stress 
on  a  single  month's  returnK,  but  it  is  certainly  curious 
that  they  should  coincide  with  the  frantic  (and  what 
we  believe  wall  prove  utterly  futile)  efforts  to  persuade 
rubber  planters  to  reduce  their  output  by  20  per  cent. 
And  the  statistics  arc  all  the  more  significant  when  it 
is  recalled  that  until  quite  recently  the  same  interests 
whicih  are  now  bawling  for  restricted  production  were 
constantly  preaching  a  rubber  famine  either  this  year 


or  next  at  farthest.  In  advocating  a  reduction  of 
tapping,  they  put  in  the  forefront  of  their  argument 
the  patriotic  motive  of  economising  tonnage  !  Last 
month,  presumably  as  the  result  of  their  efforts,  actually 
some  80  tons  of  freight  would  appear  to  have  been 
saved  ;  but  if  it  is  true  that  a  s:hip  with  a  considerable 
cargo  of  rubber  was  torpedoed,  and  never  reached  these 
shores,  wiith  the  result,  of  course,  that  the  shipment 
does  not  figure  in  our  returns,  the  saving  looks  like  a 
farthing  cake  to  the  moon.  We  have  already  expressed 
our  view  that  the  artificial  restriction  of  output  will  lead 
to  disaster,  and  we  have  seen  nothing  in  the  reliable 
figures  at  our  disposal  to  modify  that  opinion.  The 
market  seems  to  agree,  for  although  an  attempt  was 
made  to  raise  the  price,  it  only  succeeded  this  week  in 
getting  it  up  to  2s.  d,\A.,  and  there  was  a  prompt  re- 
action to  near  the  2S.  3d.  level.  Would  it  not  be  best 
for  all  interests  concerned  if  it  were  frankly  recognised 
(and  the  .■sooner  the  better)  that  the  price  must  come 
down   to — let  us  say — is.  6d.    or  less? 


What    Balance   Sheets   Tell. 

ENGLISH  VELVET  AND  CORD  DYERS'  ASSOCIATION,  LTD. 

Last  year  proved  a  very  profitable  one  for  this  company,  the 
trading  profits  showing  an  increase  of  ^^'27,000  at  2^117,640. 
Only  ;i"i,53o,  or  ;^io,ooo  less,  has  to  be  written  off  investments, 
and  after  providing  for  depreciation  and  debenture  interest  the 
nett  profit  is  /.■37,ooo  up  at  ;i'95,57o.  Consequently  the  directors 
are  able  to  raise  the  dividend  from  8  per  cent,  to  to,  and  the 
bonus  from  2  per  cent,  to  5,  making  15  per  cent,  in  all  against 
10  per  cent.,  to  double  the  appropriation  to  reserve  at  ^^40,000, 
and  to  carry  forward  ,1^1,450  more  at  .,^15,980.  The  reserve 
fund  will  now  amount  to  ;i;^i7o,ooo.  Creditors  are  ;^62,ooo  up 
at  j£'38,76o,  but  stocks,  debtors,  cash  and  investments  (all 
lumped  together)  liave  increased  ^J^  142,000  to  a  round  half- 
million,  while  properties,  plant,  &c.,  have  been  written  down 
^27,000  to  ;^'57o,ooo.  Everything  looks  healthy,  but  the  appear- 
ance of  the  balance-sheet  would  be  improved  by  the  segregation 
of  several  of  the  items. 

CEREBOS,      LTD. 

Very  substantial  progress  was  made  in  the  year  to  Novem- 
ber 30,  the  gross  profits  showing  an  increase  of  ;^g,2oo  at 
;^72,3io,  while  the  nett  were  ;^io,30o  higher  at  ^^31,500.  A 
considerably  larger  amount  was  brought  in,  and  the  balance 
available  is  ^21,500  up  at  ,^47,400.  Consequently,  the  directors 
(ire  able  to  recommend  a  cash  dividend  of  6  per  cent.,  against 
nil,  and  they  also  propose  the  distribution  of  one  bonus  share 
for  every  25  now  held,  being  equivalent  to  a  further  4  per  cent. 
Moreover,  ;2^io,ooo  is  set  aside  as  the  nucleus  of  a  reserve  fund, 
and  there  remains  ^^9,400,  or  ;^8,5oo  less,  to  be  carried  forward. 
Last  year  J^3,ooa  was  uSfed  in  wiping  out  the  Bisto  suspense 
account,  which  has  now  disappeared,  and  the  position  looks 
decidedly  stronger,  but  ^157,730  for  goodwill  and  trade-marks 
is  a  heavy  burden  to  carry.  It  is  stated  that  in  its  tin  depart- 
ment the  company  has  made  large  quantities  of  munitions  for 
the  Government,  and  the  turnover  in  its  regular  business  has 
been  the  highest  on  record,  but  the  margin  of  profit  was  much 
smaller  than  in   the  previous  year.  * 

BRADBURY,   GREATOREX   AND   CO.,   LTD. 

Firms  in  the  soft  goods  trade  have  had  a  curiously  varied 
experience  in  the  past  year,  but  this  company  has  been  fortu- 
nate in  securing  increased  profits,  and,  with  a  larger  amount 
brought  in,  the  balance  available  is  ^£'12,750  up  at  ;if86,75o. 
This  allows  the  directors  to  raise  the  dividend  and  bonus  from 
10  per  cent,  to  12  per  cent.,  requiring  an  additional  ;r!^5,3oo, 
while  the  employees'  share  of  the  profits  takes  ^^1,300  more  at 
;^8,96o,  and  ^6,200  more  at  ,/4i,ioo  is  carried  forward.  Nothing 
is  set  aside  to  reserves,  but,  as  the  funds  amount  to  ;/^i24,ooo, 
there  is  no  call  to  adopt  an  ultra  conservative  attitude.  At  pre- 
sent the  ordinary  shares  are  ^10  each,  with  £&  paid,  but  last 
year  resolutions  were  passed  to  cancel  the  uncalled  liability 
and  to  subdivide  the  shares  into  £t  each.  This  is  now  await- 
ing the  sanction  of  the  courts,  which,  it  is  anticipated,  will 
be  received  in  due  course. 


Owing  to  the  restrictions  placed 
upon  paper  supplies  we  cannot 
provide  newsagents  with  copies  for 
chance  sales.  Would  regular  readers  of 
the  "  Investors'  Review,"  therefore, 
kindly  place  an  order  with  their  local 
newsagents  or  subscribe  direct  to  the 
publisher? 


l82 


Ube  Jnpeetors'  *Rev>tcw, 


February  i6,  igi8. 


PAWSONS     AND     LEAPS,      LTD. 

Nelt  profits  ior  the  past  year  arc  brought  out  at  ;^j4,98o,  or 
^i,ooo  down,  but  as  they  arc  struck  alter  providing  lor  income- 
tax  and  excess  duty  on  a  higher  scale,  the  actual  results  are 
doubtless  better  ihan  they  look.  Anyhow,  ;^6,7oo  more  was 
brought  in,  and  as  the  allocation  of  ;^5,ooo  to  staff  pension 
fund  has  not  to  be  repeated,  the  directors  are  enabled  to  pay 
a  bonus  of  2s.  per  share,  m;iking  iis.,  against  9s.,  for  the  year, 
and  to  increase  the  carry-forward  by  ^^7,200  to  ;^'44,i50.  Credi- 
tors are  up  ;^i36,ooo  at  ^256,000,  but  debtors  have  risen 
/^i2j,ooo  to  ./fjOS.ooo,  and  cash  is  ^'65,000  higher  at 
/,8j,ooo.  On  the  other  hand,  stocks  are  /.'34,o()o  down 
at  ;^i  16,700.  The  position  has  considerably  improved  in 
recent  years,  but  it  would  have  been  more  prudent,  instead  oi 
paying  a  bonu.s,  to  inaugurate  a  reserve  fund.  There  is  no  sort 
of  business  in  which  ample  provision  for  contingencies  is  more 
necessary. 

HOLZAPPELS,      LTD. 

Last  year_was  a  very  successful  one  for  this  company,  the  nett 
profits  showing  an  increase  of  /i8,ooo  at  ;^82,28o.  Although 
the  directors  considered  it  desirable  to  pursue  a  conservative 
policy,  they  feel  justified  in  raising  the  dividend  from  yi  per 
cent,  to  10  per  cent.,  but  they  write  ;f  15,000,  or  ^^5,000  more, 
off  goodwill,  reducing  that  item  to  ^^30,000,  and  increase  the 
carry-forward  by  ;f2o,5oo  to  ^26,300.  These  are  very  .satisfac- 
tory results,  considering  the  difficulties  with  regard  to  .supplies 
of  raw  materials,  labour,  and  freights.  It  is  announced  that 
shareholders  who  reside  abroad,  and  are  naturalised  Briti.sh 
subjects  of  enemy  origin,  have  agreed  to  sell  their  holdings, 
and  about  150,000  shares  are  changing  hands,  and  are  being 
distributed  among  British-born  shareholders  resident  in  this 
country.  All  the  naturalised  directors  of  foreign  extraction 
have  retired  from  the  board  at  their  own  request,  and  it  is 
intended  to  change  the  name  of  the  company  as  .soon  as  the 
necessary  formalities  can  be  completed.  It  is  a  pity  that  steps 
in  this  direction  were  not  taken  sooner,  but  better  late  than 
never. 


COMPANY  MEETINGS. 

WARING   AND  GILLOW. 

The  fourth  annual  general  meeting  of  Waring  and  Gillow, 
Ltd.,  was  held  on  Tuesday  at  the  company's  premises,  164-180, 
Oxford  Street,  W.,  Mr.  W.  J.  Jennings  presiding. 

The  Secretary  (Air.  Joseph  Ritson,  F.C.I.S.)  having  read  the 
notice  calling  the  meeting. 

The  Chairman  said  :  Ladies  and  Gentlemen,— This  meeting 
has  been  postponed  for  long  past  the  statutory  period.  The 
delay  arises  mainly  from  the  Finance  Acts,  1915-16,  imposing 
the  excess  profits  duty,  and  can  be  stated  quite  shortly. 

We  have  spent  very  large  sums  of  money  in  building  and 
equipping  factories,  mainly  of  a  purely  temporary  character 
the  questions  are  how  much  of  this  very  large  expenditure  the 
taxing  authorities  allow  to  be  written  off  out  of  profits  before 
excess  profits  are  calculated,  and  over  how  long  a  period  is 
the   writing  off   to  be  spread. 

When  these  questions  are  answered  there  is  nothing  to  delay 
the  completion  of  our  accounts,  but  it  is  obvious  that  tiU 
definite  answers  can  be  given  we  cannot  present  final  figures 
At  the  same  time  the  directors  are  able  to  state  that,  as  com- 
pared with  the  accounts  for  the  year  ended  January  3.,  ini6- 
those  last  published— the  business  has  shown  encouraging  and 
continuous  progress.  A  reference  to  our  report  for  that  year 
will  show  that  our  profits,  subject  to  excess  profits  duty— which 
we  estimate  /or  that  year  alone  at  ;^35,ooo— was  /•ioo,884.  It 
IS  possible  now  to  state  Uiat,  notwithstanding  the  increase  in 
the  excess  profits  duty,  the  directors  are  satisfied  that  the 
profits  for  the  year  ended  January  31,  19,7,  and  for  the  year 
just  concluded  will,  when  the  accounts  can  be  finally  adjusted 
certainly  not  be  less,  and  this  is  after  making  provision  at 
what  we  believe  to  be  an  ample  figure  for  excess  profits  duty 
We  of  course,  know  our  trading  figures,  and  can  state  defi- 
nitely that  they  compare  most  favourably  with  those  last  pub- 
lished. It  is  true  that  our  liabilities  are  higher;  this  is  due 
to  our  greatly  increased  turnover— but  we  have  no  overdue 
accounts— and  our  a.ssets  are  proportionately  higher,  our  book 
debts  being  up  as  the  result  of  money  owing  by  the  Govern- 
ment, which  is  as  good  as  cash.  While,  as  compared  with 
a  cash  balance  of  ^86,55.  on  January  31,  ,9,6,  our  cash  and 
investments  in  National  War  Bonds  stood  on  January  31,  1918, 
yxr^"^'*^  '  ''"°  '"  addition  we  hold  as  an  investment  /•s',=;oo 
on  War  Loan.  It  is  apparent  that  with  our  largely  increased 
turnover  more  cash  is  required  in  the  business,  and  our  War 
Bonds,  as  you  know,  are  available  towards  the  liquidation  of 
the  excess  profits  duty  when  the  amount  has  been  ascertained. 

fir«  L^  Chairman  said  :  When  the  excess  profits  duty  was 
fo6n?.?.!n,  ^°.""'^d  to  .S"  per  cent.;  it  was  then  raised 
lh.JZ  k^'i  '^  "°'''  ^'  P"  "»"*•      ^^'<=  are  entitled,  before 

the  excess  profits  duty  comes  into  operation,  to  the  standard 
rate  of  percentage  only-/.,.,  f,  per  cent.-upon  the  capital 
f/^f^h''^„nH''''.K"''f^-.  ^'"^  't  '^  contended^"  the  authori 
not  tfr  r  ^  ^^\  ^^^  '^''P"^  employed  in  the  business  is 

not  for  the  purpose  of  excess  profits  duty,  the  nominal  capital 
of  the  company,  but  .s  Ies.s  by  the  whole  of  the  ordinary  .shares. 
These  500,000  ordinary  shares  of  los.  each,  issued  as  fullv- 
paid,  are  treated  by  the^  taxing  authorities  as  not  representing 
any  cash  value,  with  the  result  that  we  are  not  allowed  the 
standard   rate  of   percentage  upon   this   large  sum. 


Referring  to  tlie  suggestions  that  the  company  ought  to  pay 
the  year's  preference  dividend  in  arrear,  the  Chairman  ex- 
plained that  the  directors  are  of  opinion  that,  under  present 
circumstances,  it  is  more  to  the  advantage  of  shareholders  tu 
retain  the  profits  beyond  the  current  year's  dividend  in  the 
business.  He  gave  the  following  illustration  of  the  incidence 
of  war  taxation,  based  upon  the  figures  of  the  last  published 
balance-sheet. 

This  contained  provision  for  writing  off  ;£20,ooo  from  the 
underwriting  commission  ;  there  was  also  a  figure  of  ;f  2,491 
for  the  amortisation  of  leases,  which  we  are,  of  coairse,  bound 
to  provide,  and  the  carry  forward,  less  the  amount  brought  in, 
was  .1^5,885.  These  sums  together  amount  to  ^^28,376,  and  to 
enable  us  to  make  the.se  absolutely  essential  provisions  necessi- 
tates a  payment  in  taxation  alone,  with  excess  profits  duty  at 
80  per  cent,  and  incxjine-tax  at  5s.  in  the  £,  of  no  less  a  sum 
than  ;fi6o,ooo.  Add  to  the.se  sums  the  amount  required  for 
one  year's  preference  dividend,  and  the  interest  and  sinking 
fund  upon  the  debentures,  and  it  will  be  seen  that  we  need 
to  make  a  total  profit  of  nearly  ;^265,ooo.  Out  of  this  large 
sum  not  only  would  there  be  nothing  for  the  ordinary  shares, 
there  would  be  nothing  for  the  year's  dividend  on  the  pre- 
ference shares  in  arrear.  Put  in  another  way,  of  every 
;/^ioo,ooo  we  make,  after  providing  for  the  preference  dividend 
and  interest  and  sinking  fund  on  debentures,  the  Govtrnment 
take    ;f 85,000,    leaving    the    company   only    /^i 5,000. 

After  alluding  to  a  private  and  subsidiary  company,  the 
Alliance  Aeroplane  Co.,  Ltd.,  which  has  been  established  by, 
and  is  entirely  under  the  control  of.  Waring  and  Gillow  for 
the  manufacture  of  complete  aeroplanes,  the  speaker  continued  : 
You  will,  I  think,  expect  me  to  say  a  word  or  two  about  our 
general  business.  As  to  this,  I  am  glad  to  say  that — notwith- 
standing the  difficulties  consequent  upon  a  depleted  staff,  in 
obtaining  stock,  and  the  reduced  facilities  for  dispatch — every 
department  of  the  company's  business  shows  a  gratifying  in- 
crease, and  the  directors  desire  to  take  this  opportunity  of 
saying  that  the  results  reflect  the  greatest  credit  upon  the 
staff,  who  have  worked  ungrudgingly  and  grappled  success- 
fully with  the  mSny  diflaculties  and  adverse  conditions  to  which 
I    have   alluded. 

Several  shareholders  expressed  the  opinion  that,  notwith- 
standing what  the  chairman  had  said  as  to  the  difficulties  in 
presenting  the  accounts,  it  ought  to  be  possible  to  give  figures 
which  would  indicate  the  progress  of  the   company. 

■  After   the  re-election  of  directors  and   auditors,  the  meeting 
was    adjourned. 

SOUTH    METROPOLITAN    GAS. 

The  ordinary  half-yearly  general  meeting  of  the  South  Metro- 
politan Gas  Co.  was  held  on  Wednesday  at  Cannon  Street 
Hotel,  E.C.,  Ur.  Charles  Carpenter  (chairman  of  the  company) 
presiding. 

The  Secretary  (Mr.  F.  McLeod)  read  the  notice  convening  the 
meeting. 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  said  he  had  really  little  fresh  to  tell  the  shareholders. 
He  might  sum  up  the  situation  shortly  by  saying  that  in  the 
interval  since  the  last  meeting  the  financial  hardships  suffered 
by  the  shareholders  and  the  anxieties  of  the  directors  in  regard 
to  the  conduct  of  the /business  had  substantially  increased.  Six 
months  ago  he  explained  the  reasons  which  had  compelled  the 
increase  in  the  price  of  gas  to  3s.  id.  per  1,000  cubic  feet,  and 
reminded  the  shareholders  that  one,  result  would  be  to  reduce 
the  dividend  for  the  current  half-}'ear  to  4  per  cent,  on  the 
ordinary  stock.  He  then  went  on  to  say  that  he  thought  they 
had  reached  the  peak  in  regard  to  costs,  and  would  be  able 
to  maintain  the  4  per  cent,  dividend.  Unfortunately,  their  hopes 
and  anticipations  in  regard  to  this  had  not  been  realised. 
There  was  a  fairly  general  impression  that  some  sections,  at 
any  rate,  of  organised  labour  were  using  the  war  as  a  lever 
for  raising  the  general  standard  of  wages.  As  a  consequence 
of  the  recent  decision  by  Sir  George  Askwith  the  war  bonuses 
they  had  been  paying,  and  which  had  reached  15s.  2d.  per  week, 
became  war  wages  and  ranked  in  respect  of  overtime  and  extras 
of  all  kinds.  The  result  had  been  a  considerable  increase  in  the 
wages  bill.  Further,  difiiculties  had  arisen  in  respect  of  what 
he  might  be  allowed  to  call  the  notorious  12^  per  cent,  with 
the  result  that  that  seriously  affected  wages.  The  consequence 
was  that  the  wages  paid  for  the  past  half-year  were  ;^502,629, 
as  compared  with  ;^2g9,ooo  in  the  corresponding  pre-war  period, 
so  that  there  was  an  increase  in  wages  in  one  half-year  over  the 
pre-war  period  of  over  ^200,000.  Then  there  was  the  price  of 
coal,  with  regard  to  which  they  certainly  thought  they  had  great 
cause  for  complaint.  They  endeavoured,  but  unsuccessfully,  to 
induce  the  authorities  to  postpone  the  raising  of  the  price  of 
coal  until  January  i  in  the  current  year.  That  would  have  given 
them  an  opportunity  to  recoup  themselves  in  respect  of  the 
additional  burden.  They  could  have  added  something  like  an 
equivalent  to  the  price  of  gas,  but  the  increase  was  sprung  upon 
them  at  short  notice,  and  before  the  half-year  was  over  they  had 
'<^t  ;£'32,ooo  in  respect  of  the  contract  for  coal  in  that  half-j'ear 
alone.  So,  taking  the  increase  in  cost  of  coal  at  ;jf 32,000,  "and 
the  increased  cost  of  labour  at  ;f  20,000,  those  items  accounted 
for  their  inability  to  make  both  ends  meet  in  the  half-rear,  and 
having  to  trench  upon  the  reserve  to  the  extent  that  they  had 
done.  While  having  to  pay  so  much  extra,  they  had  not 
received  a  penny  more  for  residual  products  as  compared  with 
the  corresponding  period  of  the  previous  year;   in  fact,   they 


February  i6,  1918. 


XLbc  5nve6ioc0'  llevtew* 


183 


had  received  less.  Then,  in  addition  to  the  heavy  cost  of  coal 
at  the  pit  mouth,  freightage  was  costing  them  more  and  more. 
They  could  only  carry  in  their  own  bottoms  something  like 
one-third  of  their  total  requirements,  and  for  the  remainder 
they  had  mostly  to  charter.  The  cost  of  chartering  had  been 
fixed  by  the  Controller  at  something  like  five  or  six  times  the 
pre-war  figure.  These  conditions  as  to  coal  and  freight  were 
certainly  never  anticipated  when  their  present  sliding  scale  as 
to  prices  and  dividends  was  settled.  Despite  what  was  said 
six  months  ago,  the  directors  felt  it  was  incumbent  on  them 
to  approach  Parliament  to  obtain  some  relief.  The  report  stated 
that  the  demand  for  gas  continued  satisfactory.  He  did  not 
know  that  "satisfactory"  was  the  right  word  to  use,  because 
he  felt  that  a  good  deal  of  gaseous  and  electric  energy  was 
being  wastefully  used,  and  that  it  was  quite  possible  some  of 
the  gas  included  in  the  increase  of  yyi  per  cent,  reported  was 
being  wastefully  used,  having  regard  to  the  fact  that  we  were 
at  war  and  wanted  to  economise  every  possible  ton  they  could 
of  coal-carrying  capacity.  There  was  another  side  to  the 
question,  and  that  was  that  all  the  by-products  were  recovered 
instead  of  being  wasted,  and  having  regard  to  the  need  for 
these  for  the  national  service  there  was  a  gain  in  that  respect. 
As  long  ago  as  1915  he  urged  that  there  shonld  be  a  restriction 
in  the  use  of  raw  coal,  and  it  seemed  a  curious  commentary 
on  their  attitude  that  nothing  .should  have  been  done  in  that 
way  until  the  position  became   grave. 

The  Deputy-Chairman   (Mr.   Frank   H.    Jones)   seconded   the 
resolution,  which  was  carried  lananimously. 

An  extraordinary  general  meeting  of  the  company  was  after- 
wards held  to  consider  the  following  resolution  : — "  That  the 
-  Hill  now  submitted  to  this  meeting,  intituled  'A  Bill  to 
authorise  the  South  Metropolitan  Gas  Co.  to  raise  additional 
capital ;  and  for  other  purposes,'  be  and  the  same  is  hereby 
approved,  subject  to  any  amendments  which  may  be  -made 
therein    by   Parliament  and   approved   by   the   directors." 

The  Chairman,  in  moving  the  resolution,  explained  the  posi- 
tion of  the  company  with  regard  to  capital  and  why  it  was 
necessary  to  promote  the  Bill.  He  said  they  had  no  capital  with 
which  to  provide  for  the  requirements  of  future  business,  and 
they  were  in  debt  to  the  bank.  It  was  perfectly  obvious  that  if 
they  were  going  to  correct  that  condition  of  affairs  they  must 
raise  further  capital.  They  were  asking  now  for  j^i, 500,000  of 
new  capital,  and  for  an  adjustment  in  respect  of  ^f 500,000  of 
the  old  capital.  Under  the  Bill  they  also  asked  for  a  temporary 
adjustment  of  the  sliding  scale  owing  to  the  hardships  suffered 
by  the  company  consequent  on  the  abnormal  conditions  due  to 
the  war.  Stated  briefly,  the  proposal  was  to  leave  the  sliding 
scale  and  its  relationship  to  dividend  exactly  the  same,  but 
to  move  upward  the  basic  price  from  3s.  id.  to  3s.  7d. — an 
increase  of  6d. — ^and  if  conditions  remained  as  to-day,  that 
would  give,  with  the  present  price  of  gas,  a  4  per  cent,  dividend. 
The  Deputy-Chairman  seconded  the  resolution,  which,  after 
a  short  discussion,  was  carried. 


HOME    AND    COLONIAL    STORES. 

The  twenty-third  ordinary  general  meeting  of  the  share- 
holders of  the  Home  and  Colonial  Stores,  Limited,  was  held  on 
Thursday  at  2  and  4,  Paul  Street,  Finsbury,  K.C.,  Sir  Charles 
E.   G.  Philipps,   Bart,  (the  chairman)   presiding. 

The  Assistant  Secretary  (Mr.  G.  J.  Faro)  having  read  the 
notice  convening  the  meeting  and  the  report  of  the  auditors. 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  said  :  Before  commenting  upon  the  business  of  the 
company  I  hope  I  may  be  allowed  to  refer  to  the  paragraph 
in  the  report  which  reminds  you  of  the  great  loss  the  companv 
has  sustained  by  the  death  of  our  late  able  and  distinguished 
chairman.  Sir  William  Capel  Slaughter.  His  great  ability  wns 
only  equalled  by  his  resource  and  perseverance.  With  him  a  difii- 
culty  was  only  something  to  be  surmounted,  and  it  was  always 
met  with  a  skill  and  resource  which  proved  invaluable  in 
dealing  with  the  many  complicated  matters  which  the  board 
had  from  time  to  time  to  encounter  and  decide.  We  greatly 
deplore  his  loss.  The  same  paragraph  to  which.  I  have  referred 
tells  you  that  we  have  elected  Mr.  William  May,  Sir  William's 
trusted  friend  and  partner,  as  director  in  his  place,  and,  speak- 
ing for  ihy  colleagues  and  myself.  I  will  only  say  that  we  recog- 
nise that  we  have  secured  a  gentleman  with  whom  it  will  be  a 
real   pleasure  to  share  our  work. 

Taking  into  account  the  unprecedented  conditions  of  the  year 
under  review,  I  am  sure  you  will  agree  that  the  result  of  the 
}'ear's  trading  is  not  unsatisfactory.  The  profit  for  the  year 
amounted  to  ^226, 155  17s.  yd.,  making,  with  the  balance  of 
^^48,130  17s.  2d.  brought  forward  from  the  previous  year,  a 
total  of  /274,296  14s.  gd.  After  paying  the  usual  dividends 
on  the  6  per  cent,  cumulative  preference  shares  and  on 
the  15  per  cent,  cumulative  preference  and  cumulative 
ordinary  shares,  together  amounting  to  ^f  123,600,  there  remains 
a  sum  of  ^150,686  14s.  gd.  Of  that  we  have  placed  ^25,000 
to  reserve,  leaving  a  balance  of  /i25,6S6  14s.  od.  to  be  dealt 
with.  This  we  proDOse  to  aporopriate  in  the  following  way  : — 
(i)  To  the  payment  of  a  dividend  of  6s.  per  share  on  the  "  A  " 
ordinary  shares,  ;^3o,ooo;  (2)  to  the  company's  sick  fund, 
/2,ooo ;  (3)  to  special  bonus  for  branch  staff,  ^^30,000 ;  (4)  to 
provide  for  income-tax,  /io,ooo;  and  (5)  to  carrying  forward 
^53,686  14s.  qd.,  making  a  total  of  ^^125,686  14s.  gd.  By  plac- 
ing .]f2.i.ooo  to  reserve  we  have  brought  our  reserve  funds  up 
to  ^425,000,  all  of  which  is  separately  invested  outside  the 
business,   including   no  less  than  ^^299,409   in  the  5   per  cent. 


War  Loan.  The  branch  staff  bonus  scheme  which  you  autho- 
rised three  years  ago  is  governed,  as  you  are  aware,  by  the 
amount  of  the  dividend  on  the  "  A  "  shares,  and  in  proposing, 
as  we  now  do,  to  maintain  this  dividend  at  6s.  per  share, 
we  have  the  added  satisfaction  of  so  recognising  in  a  tangible 
way  the  loyal  and  efficient  manner  in  which  our  staff  have  per- 
formed their  duties  throughout  the  year  under  the  most  trying 
and  often  difficult  circumstances.  Front  what  I  have  sa]d 
you  will  readily  believe  that  the  past  year  has  been  very 
strenuous,  and  one  of  considerable  anxiety,  the  whole  conditions 
of  our  trading  and  distribution  being  fundamentally  altered, 
liefore  the  war  our  buyers  had  the  whole  world  as  their  market, 
and  our  requirements  were  the  only  limit  of  their  expenditure. 
Now  the  Food  Controller  regulates  the  market,  and  in  many 
important  articles  is  the  merchant  from  whom,  or  through 
whom,  we  have  to  buy,  while  the  amount  of  our  purchases  is 
also  strictly  limited.  The  sales  of  the  principal  commodities, 
too,  are  absolutely  under  the  surveillance  of  the  Food  Control 
Committees,  both  as  to  the  quantity  to  be  allowed  to  any 
individual  purchaser  and  the  price  to  be  paid  by  him.  In 
addition  to  all  this  we  have  to  a  large  extent  had  to  carry 
on  our  business  with  a  new  staff,  2,460  of  our  men  having 
joined  the  colours.  Their  places  have  for  the  most  part  been 
filled  by  women,  and  it  speaks  very  highly  both  for  them  and 
for  our  inspectors  that  the  work  has  been  carried  on  efficiently 
and  with  comparatively  little  friction.  From  the  point  of  view 
of  profit  the  directors  are  a  little  disappointed,  but  not  .sur- 
prised, that  the  figure  compares  somewhat  unfavourably  with 
that  of  the  previous  year.  I5ut  these  are  times  when  other  con- 
siderations have  to  be  studied,  and  our  one  desire  throughout 
the  year  has  been,  as  hitherto,  to  uphold — and  we  believe  we 
have  with  success  upheld — the  traditions  of  the  company  for 
fair  and  reasonable  dealing.  As  regards  the  immediate  out- 
look, it  would  be  unwise  to  attempt  to  prophesy,  or  even  to 
hazard  a  forecast.  The  Food  Controller,  as  I  have  indicated, 
controls  and  regulates  the  buying,  selling,  and  distribution  of 
the  principal  commodities,  with  the  view  of  ensuring,  as  far 
as  possible,  equitable  distribution  among  the  pirblic  of  the 
diminished  supplies  available.  The  scope  for  initiative  and 
enterprise  is  consequently  curtailed,  if  not  eliminated,  for  the 
time  being.  We  do  not  wish  to  criticise.  On  the  contrary, 
it  remains  our  constant  endeavour,  as  it  has  been  ever  since 
the  war  began,  loyally  to  assist  the  Government  and  the  various 
local  authorities  by  every  means  in  our  power  in  the  difficult 
task  of  dealing  with  such  a  vital  and  complex  problem  as  the 
food   supply  of  the   people. 

Mr.   G.  G.   Fisher,  J. P.,  seconded  the  resolution,  which  was 
carried  unanimously. 


FINANCIAL  ADVICE. 


You  can  always  obtain  gratis  the 
best  advice  regarding  your  stocks 
and  shares  through  the  medium  of 
the  Answers  to  Correspondents 
column  of 


which  has  the  largest  circulation 
of  any  financial  daily  newspaper 
in  the  world. 

You  should  remember  that  The 
Financial  Times  criticises  "without 
fear  or  favour"  every  prospectus 
that  is  issued,  whether  advertised 
in  its  columns  or  not. 


72,  COLEMAN  STREET,  LONDON,  E.G. 


Telephone: 
3436  London  WalL 


Telegrams : 
*' Finantimo,  London. 


1 84 


Zbc  investors'  Kcvicw, 


February  i6,  igi8. 


INDIAN  RAILWAYS. 


Nami 


Assam  Bengal 

Barsl 

BenK8l&N.-W.     .. 

Bengal  Nagpar 

Bombay,  Baroda  .. 

Burma 

Delhi  Umballa       .. 

East  Indian.. 

Gt. Indian  Penln.  .. 

Lucknow-Bareilly. . 

Madras      and       S. 

Mahratta  .. 
Nizam's  Gd.  (Broad) 
,,        „     (Metre) 
Robilkund  and 

Kumaon  ..        .. 
Snnth  Indian 


GROSS  TRArFIC  FOR  WEEK. 


Week 
ending 


Amount 


Dec.  I 
„  8 
Nov,  24 
Dec.  8 
Feb.  2 
Dec.  I 
Feb,  2 
Jan.  2^ 
Feb.  2 
Nov.  24 

Dec.     8 


Ks. 

'.30,307 

16,100 

3, 6}, 620 

11,18,000 

15,28,000 

4.34,871 

80,000 

24,41,000 

23,85,600 

4',5Si9 

10,90,003 
«,25.30l 
1,08,008 

49.020 

6,73.248 


In.  or  deo. 

on  lait 

year. 


OROU  TRArriC  TO  DATE 


Rs. 

—  3,276 

—  3,700 

—  88,445 
+  1,75,000 
+  26,000 
I—  36,671 
+    24.555 

—  38.000 

+  1.89,600 
j-    3018 

48,788 
2,928 
6,828 


11,625 
6,989 


Amount 


In.  or  dec. 
on  last 
year. 
Rs.      I "      Rs. 
11,16,15c.—      83,642 

—  I,57,cco 

—  5.27.633 
+  31.63.524 

—  10,15,000 

—  1,03,650 
+  2,21,384 
+  16,23,000 
+  29,04,429 
+        14,440 


5,77,coo 

25,62,240 

3,68,81,578 

2,50,09,000 

35,08,824 

16,11,586 

3.92,07,000 

3.97.53,011 

3,12,651 


t  April  I .  J  October  1 

TRAMWAY  AND  OMNIBUS.— HOME. 


92,20,000 
11,93,681 
7,22,830 

3,35.047 
62.99,588 


4,46,210 

-  47,9'4 
21.688 

•5,899 
3.6Z.399 


Burnley  Corp. 
Dublin  United       , . 
Hastings  and  Dist.. 
Uls  of  Thanet 
Lancishire  United.. 
Provincial    . . 
Vorks.  (Wst.  Rdng.) 


Feb. 

9 

.. 

I 

13 
5 
6 

Jan. 
Feb. 

Jan. 
Feb. 

19 
10 

♦  From  Oct.  1.  f  From  Jan.  i. 

TRAMWAY  AND  OMNIBUS— PORliIGN   AND  COLONIAL. 


Alabama  Power 
ADglo-Argeiitlne 
AuoklancT  Electric 
Brazilian  Traction  . 
Brisbane  Eleo.  Inv. 
British  Columbia  .. 
B.A.  Lacroze 
Burmah  Electric  .. 
Calcutta 
Carthagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &  T 

Hongkong   .. 
La  Plata 

Lima 

Madras  Eleotrio   .. 

Manila  Electric 

Mexico 

Rangoon 

Singapore  Electric 

Toronto 

United  of  Monte  V 

Vera  Cruz    ., 

Winnipeg    . . 


Nov. 

5 

Feb. 

ti 

Oct. 

26 

Deo 

Oct. 

Dec. 

S 

Jan. 
Dec. 

b 

Feb. 

9 

Jan. 

b 

Nov 

Dec. 

I 

Ian. 

b 

Dec. 

Ian. 

31C 

AUR. 

8 

Nov 

8 

Ian. 
Dec. 

8 

15 

Nov. 

« 

Ian. 

Nov. 

S 

i 

II4,f96 

55.423 

22,308 

M7,3i2,ooo 

^  33,580 

•  '67,333 

38,902 

Rs. 26,224 

Rs.72,205 

4,011 

'3.339 
12,561 

4.7" 

20,432 

Rs.  40,542 

^  65,467 

»2i5,256 

5.361 

♦  12,548 

•423.556 

136,016 

46,300 

186,888 


£ 

+  24,747 
+  4,755 
+  880 

+  M  757,000 
■I-  820 

+  •30,967 
•t-  760 

—  Rs. 6,327 
+  Rs.4,150 

+  29 

+  503 

+  »388 

+  396 

+  3,187 

+  Rs.5,23 

+  4,667 

—  ♦108,669 
+  728 

—  «749 

—  »8,753 
■»■         2,675 

—  •'4,744 


f 

',277.830 

3'5,463 

92,118 

M84885000 

328,420 

*599.797 

269,377 

109,108 

RS3,49.758 

4,011 

108,715 

•647,597 

48,962 

195,748 

Rs.78,278 

547.492 

$3,193,106 

5,3Sl 

1643,405 

•5.032,176 

lOI.ioi 

567,000 

•748,976 


6  28  days.       •  From  Jan.  i,      J  Nett,       a  From  July  i. 

FOREIGN  RAILWAYS. 


£ 

+  359.725 
+      18,227 

*.,  '■•'32 
+  M7315000 

—  2,000 
+    $60,091 

—  340 

+  Rs.  1,483 
+  Rs.11,640 

+  29 

—  .  2,137 

—  »38,825 

—  1873 
•I-  8,037 
4-  Rs.6,474 
1-  70,625 

—  $197,227 
+  728 
+  811,654 
+  •239,133 
+          7,992 

—  •327.782 


c  Two  weeks. 


Alooyand  Gandia 

Antofagasta    (Chili) 

Arauoo         . ,        . . 

Argentine  N.E. 

Bilbao  R.  and  Caota 

Bolivar 

Brazil 

Brazil  Gt.  Southern 

B.  Ayres  &  Pacific 
Do.  Central 
Do.  Gt.South'n 
Do.       Western 

Central  Argentine. 

C.Ur'g'ayof  Mte  V. 
Do.  East'n  Ex. 
Do.  North'n  Ex 
Do.  West'n  Ex, 

Cordoba  Central  , . 
-  Costa  Rica  . 

Cuban  Central 

Dorada  Extension. . 

Egyptian  Delta      ,. 

Entre  Rios  . . 

French  Sante  F£  . . 

Gt.  Soutt).  of  Spain 

Qt.West.  of  Brazil. 

Havana  Central    . . 

Inter,  of  C.  Amer... 

La  Guaira  and  Car, 

Leopoldina  .. 

Midland  Uruguay  .*. 

Mogvana 

N.w.  of  Uruguay .. 

Nitrate 

Paraguay  Centra]  . , 

Paullsta 

Peruvian  Corpa    . . 

■Salvador 

State  of  Bahia  S.W 

S.  Paulo  (Brazilian) 

Sorocabana.. 

Taltal.. 

United  of  Havana.. 

West'n  of  Havana.. 

Zafra  and  Huelva. . 


Feb. 

Dec. 
Feb. 
Jan. 

Nov. 
Oct. 
Feb. 
Dec. 
Feb. 


..  9 
..  9 
9 
Jan.  26 
Dec.  15 
Feb.  9 
Jan.  •* 
Uec.  31 
Feb.  9 
Aug. 
Feb.  2 
9 
..  2 
Deo.  c 
Jan. 
Feb.  9 
Jan. 
Nov. 
Dec. 
Jan.  31 
Feb.  9 
Nov.  • 
Jan.  • 
Feb.  9 
Nov.  * 
Feb.  to 
Dec.      • 


Ps. 


Feb. 
Nov. 


£ 

9,500 
38,550 
14.500 
10,100 

5.10S 
12,000 

M4,746,ooo 
Mls.58,200 
119,000 
30,817 
148,000 
66,000 
101,000 
19,083 
5.697 
4,015 
2,905 
27,000 
2,011 
33,617 
8.300 
11,867 

20,200 
132,000 
30,647 
18,900 
9,893 

20,754 

8,250 

36,788 

10,638 

.Vl2,2t2,000 

»33.ooo 

38,883 

3,080 

M3, 506,000 

81,189,350 

'•3,3'4 

M85.00D 

38,935 

107,000 

29,108 

83,337 

10,790 

10,538 


— Ps.  l,5co 
+  ',870 
+  2,000 
+  3.900 
—  1,009 
+  „  444 
-fM  664,379 
+  Ml4,900 
7,000 
8,031 
8,000 
i6,coo 
4,600 


I'i. 


5.122 

861 

'.436 

1,126 

705 
3,293 

3,611 

900 
4.490 
7.100 
29,099 
-PS73,877 


M2,l 


3.900 

1,019 

3,470 

750 

10,781 

+  M  222,440 
+  $8,388 
+  2,854 
+  990 

+  M  589,750 
+  8254,220 

-  $257 

—  M45,ooo 

+  .17.379 
+  M224,2o6 

+  13.306 
+      22,553 

+         3,4«8 
403 


•  Months,  t  From  Jan.  i.   t  From  July  i.    c  Nett.    4  15  days 

COLONIAL  RAILWAYS. 


„    £ 

Ps.  51,500 
221,040 
132,000 
263,900 

45,226 
79,736 

M  45353000 

"427,477 

2,551,030  — 

145.925  |— 

3,2^0,705  1 — 

1,407,000 

3,002,200 

550,151 

153,113 

99,162 

68,517 

904,180 

69,176 

475.726 

106,900 

207,915 

447.600 

900,336 

Ps.  148,465 

113,100 

247,047 

260,589 

8,250 

204,367 

9».8S5 

M  21669,000 

$159,682 

73.696 

90.940 

M30654.000 

S  7,277,620 

$44,810 

.Ml,02t,00O 

218,543 

M  16,988 
150,436 

',477.510 
243.844 
135,491 


„  £ 

-Ps. 12.570 

5,345 

+   23.200 

+   52,898 

—  11,726 

^■  23,869 
+  M5238971 

M50,207 

294,000 

5,054 

307,549 

259.000 

487,200 

153.291 

8,759 

27,142 

7.677 

13.935 

50.592 

92,703 

7,200 

44,846 

76,600 

'73429 

Ps.338752 

26,050 

42,324 

38,328 

750 

69,327 

7.355 

+  M247,7I2 

+     $13,092 

t-  5.444 

4-        10,68) 

+  M14J6138 

+  S  836,998 

—  84,745 
M66,ooo 

+  73,2<3 
+  M1735205 
+  38,895 
+  313,677 
+  56,957 
- 1,356 


a  10  days. 


Belra 

Canadian  Northern 
Canadian  Pacitio 
Qr.Trk.  Main  Line 
Gr.  Trk.  Western.. 
Detroit  G.  H,  &  M. 
GrTkPac  Prairie  So 
MasbonalanJ 
Mid.  of  Westn.  Aus. 
New  Cape  Central.. 
Rhodesia 


•  Months. 


Oct. 
Feb. 

*c 

* 
»9 

Sep. 
Nov 
Dec. 
Oct. 

£ 

67,631 

$634,600 

$2,096,000 

106,873 

23.794 
8,055 

25.799 

47.670 
8,206 
2,169 

99.667 


£ 

+  9,860 
+  $141,000 
+  $206,000 
43.345 
6.30 ) 
2.404 
12,622 
9.630 
'99 
48 
11,023 


i 
753,845 
#25,2c6,700 
$12,666, .-00 
771,858 
154,242 

56,018 
116,191 

47,670 

33.56a 
100,157 

99,687 


t  July  I.         f  Jan.  i,       c  From  Got.  t 


£ 

—      13.927 

+  8249,000 

+  $618,000 

156,752 

13,016 

4,350 

35,230 

9,630 

1,108 

15,343 
ll,o«3 


MONTHLY    STATEMENTS. 


NETT  EARM1N08  FOR  UOHTR. 

KETT  EARMINOS  TO  DATE. 

MAUB 

Monlb. 

Amount. 

In,  or  Dec. 
CD  last  year 

Amount.    '"•,"  "^ 
on  last  year 

Dole. 

Dols. 

Dols. 

Dolt. 

AtohlBon  T.  4  S.  F« 

Nov. 

4.500,0(0 

—1,062,000 

It 

44,685,000 

—  1,488,000 

Atlantic  Coast  Line 

Sep. 

812,000 

+    183,000 

It 

9,990,000 
28,797,000 

Baltimore  &  Ohio  . . 

Nov. 

1,918,000 

—  1,050,000 

ir 

—  2,160,00a 

Canadian  Northern 
Canadian  Pacific  ,. 
Chesapeake  4  Ohio 

Dec. 

65,300 

—   758,500 

6 

3.335.100 

—  2,961,00a 

Nov. 

3.911,000 

—  2,110,000 

12 

46.546.00c 

—  3.930,000 

1,229,000 

-     182,000 

11 

i2,86i.(x>o 

—  1,444,000 

Chicago  4  N.W.    .. 
CWoa8oBurl.4  Q. 

,, 

2,074,000 

—    619,000 

II 

24,304,000 

—  3,644,000. 

Oct. 

2,943,000 

—1,365,000 

10 

29,640,000 

—  1,925.000 

Nov. 

294,000 

—     159.000 

II 

3,487,000 

—    995)000 

Chicago  Mil.  4  S.  P. 

ji 

2,144.000 

-1,686,000 

II 

27,060,000 

—  6,704,000 

Chicago,  Rock  1. 4P. 

1,835,000 

+      57.000 

II 

16,461,000 

-2,534,000 

Colorado  4Bauthern 

Oct. 

654,000 

—     84,000 

II 

6.486.000 

+      847,000 

Cuba 

Nov. 

102,281 

+      22,723 

1 

773.556 

—     •57>}99 

Delaware*  Hud.  .. 

^^ 

—  405,000 

II 

5.681.000 

Denver  4  Rio  Gran. 

jj 

572,000 

—   420,000 

11 

7,152,000 

—  1,539,000 

Brie 

691,000 

—   856,000 

11 

10,031,000 

—  7,125,000 

Gr.Tr.  Main  Line.. 

£86,200 

''ti5.65o 

—  £128,600 

11 

fi.907.300 

—  ,  .627,90a 

Grand  Trunk  Westn 

—     fi,95o 

11 

435.450 

-  £362,400 

-  £99.900 

-  4,778,000 

DeiroitG.M.4Mil. 

^1 

6^61,700 

—      fl.ICO 

11 

467,700 

Gt.  Northern 

,, 

1 ,942,000 

—1,591,000 

II 

21,822,000 

Illinois  Central     .. 

1,485,000 

—   409,000 

u 

'7,538,000 

+  2,590.000 

+     589.000 

Kansas  City  Southn. 
Lehigh  Valley 

425,000 

—       6,000 

11 

4,181,000 

,, 

789,000 

—  373.000 

II 

11,273,000 

—  2,029,00a 

Louisville4Nashvl 

1, 

1,296.000 

—    178,000 

II 

16,949,000 

—    836,ot» 

Minn.S.P.  (Soo)S  .. 

J, 

496,000 

—   276,000 

11 

4,918,000 

-  2,736,coo 

Miss.  K.  &  Texas  . 

,, 

972,000 

—   271,000 

11 

7,393,000 

+  2.447,000 

Missouri  Pacific   .. 

,, 

1 ,690,000 

+    321,000 

5 

9,425,000 

+  1,920,000 

New  York  Cent.4H 

Oct. 

5,662,000 

—     15,000 

10 

42,110,000 

=;:si,si 

N.Y.  N.Haven4H. 

.Vov. 

133.000 

—   705,000 

II 

3,521,000 

NewYorkOnt.4W. 

2,7^3 

-       8,175 

II 

955.000 

—       147.000 

Norfolk  4  Western. 

1,692,000 

—      I7,88j 

II 

17.691.000 

—  2,363,000 

Northern  Pacific    . . 

^^ 

1,423,000 

—2,122.000 

11 

26,009,000 

—  2,278,000 

Pennsylvania    Easi 

and  West  Lines.. 

5,338,000 

-3,181,000 

11 

86,440,000 

— 16400,000 
—  6,626,325 

Phil,  and  Reading  . . 

,, 

1,064,0(0 

—1,199,202 

u 

14,876,700 

Reading 

577.033 

+        5,826 

11 

9,806.000 

+       212,860 

St.  Louis  4  San  F. . 

J, 

1,304,000 

+     353,000 

5 

8,569,000 
6,^y,ooo 

+  1,093,000 

Seaboard  Air  Line.. 

,, 

594,000 

+     261,000 

11 

+       342,000 

Southern     .. 

,, 

2,471,000 

+     109,000 

5 

11,795,000 

+  1,857,000 

Southern  Pacifio   .. 

,, 

4,465,000 

—1,088,000 

11 

55.577.000 

+  7,255.0»» 

Union  Pacific 

,, 

3,961,000 

-    668,000 

II 

39.694.000 

—  2.312,000 

Wabash 

" 

1,029  000 

-    255.000 

II 

11,298,000 

-      42I,0CO 

§  Includes  Wisconsin  Central.    *  Gross  earnings,    i  Surplus,    b  Deficit. 


A  course  of  three  lectures,  under  the  Cantor  Bequest,  will  be 
delivered  before  the  Royal  Society  of  Arts  by  Mr.  Edgar 
Crammond,  F.S.S.,  secretary  of  the  Liverpool  Stock  Exchange, 
on  Mondays,  February  18  and  25,  and  March  4,  at 
4.30  p.m.  The  subject  of  the  lectures  will  be  "The  Effect  of 
the  War  on  the  Economic  Condition  of  the  I'nited  Kingdom." 
The  first  lecture  will  deal  with  the  Economic  Condition  of  the 
United  Kingdom  before  the  War,  the  second  with  the  Economic 
Condition  of  the  United  Kingdom  after  Three  Years  of  War. 
and  the  concluding  lecture  has  for  its  subject  the  Real  Cost 
of  the  War  and  the  Problem  of  1-xonomic  Reconstruction. 
Admission  to  the  lectures  is  by  member's  order  or  by  ticket  to 
be  obtained  from  the  secretary  of  the  society. 


NEW  SOUTH  WALES  GOVERNMENT  5|   PER  GENT. 
GONVERSION  LOAN.   1922-1932. 

Xf  omcE3. 

Holders  of  New  South  Wales  Government  3J  Per  Cent. 
Inscribed  Stock  maturing  1st  September.  1918.  are  reminded  that 
applications  for  Conversion  into  above  53  per  cent.  Loan  must  be 
lodged  at  the  Bank  of  England,  not  later  than  WEDNESDAY. 
FEBRUARY  20th,  where  forms  for  Conversion  can  be  obtained. 


SWISS  BANK 
CORPORATION 

Established  1872. 

Basle,  Zurich,   St.  Gall,   Geneva,  Lausanne. 

Agencies — Bienne,  Chiasse,  Nyon,  Aigle,  Herisau,  Merges, 
Ralle,  Rorschach,  Vallorbe. 

LONDON  OFFICE,   43,   Lothbui-y,  E.C.2. 

West  End  Brancli:     lie,  Reiient  Street,  Waterloo  Place.  S.W.I. 

General  Manager    -    -    X.  CASTELLI. 

CAPITAL  ISSUED  AND  FOLLY 

PAID  UP         -        -        -    £3,280,000 
RESERVE  FUNDS       -        -    £1,110,000 

The  Bank  conducts  every  description  of  Banking  and  Exchange 
business,  and  is  prepared  to  furnish  the  Mercantile  and 
Industrial  Community  with  all  available  information  regarding 
Trade  and  Industry  in  Foreign  Countries  and  also  with 
Reports  on  Merchants  and  Manufacturers  established  abroad. 


Printed  by  the  St.  Clemimts  Prkss,  Ltd.,  Portugal  Street,  Kingsway,  London,  W.C,  for  the  Proprietor  of  The  Investors"  Review,  and  Publisbad 
by  The  FEorRiiTOR,  Norfolk  Houso,  Norlolk  Street,  Strand,  W.C.  i.— February  i6,  igiS.  [N  2069 


tTbe 


3nve6tote'  IRevfew 


FOUNDED    BY    A.     i/.     WILSON,     FEBRUARY,     1892. 


Vol.XLI.— No.  I,05i.] 

HEW  SERIES. 


rRtgistered  as  a") 
L    Newspaper,    J 


SATURDAY,  FEB.  23,  1918. 


[Price  6d. 


CONTENTS. 


[Passing  Events: — The  "Press  Gang" —  National  War  Bond 
Sales  —  Revenue  —  Government  Waste  —  Army 
Estimates  —  West  African  Merchants'  Association  and  the 
Bureaucrat  —  Australasian  Banks  —  London  and  North- 
western Railway  —  Great  Central  Railway  —  London 
Generil  Omnibus —  Self  ridge —  Consolidated  Cambrian  — 
Thomas  Wallis  —  British  Borneo  Petroleum  Syndicate  — 
Bradford  Dyers  —  Exploration  Co.  (pp.   187-91). 

Leading  Articles : — The  Amalgamation  of  the  London  City  and 
Midland  and  the  London  Joint  Stock  Banks  —  The 
Leninites  and  the  Russian  Debt  —  Our  Foreign  Trade  in 
January  —  Electric  Lighting  Companies  —  By-the-Way 
War  Notes  —  Income-Tax  Guides  and  Lessons  (pp.  191-6, 
and  205-6). 

'■  Money  and  Credit  Notes  : — Easy  and  Cheap  Borrowing  — 
Bank  Return  —  Foreign  Exchange  Movements  —  Loan 
Facilities  for  3J  per  cent.  War  Loan  Stock  —  Position  of 
Foreign  Securities  under  Scheme  A  —  Trafford  Park  Cold 
Storage—  Silver  (pp.  199-201). 

Insurance  News  : — Friends'  Provident  and  Century  Amalgamation 
—  Marine  and  General  Mutual  —  North  B.itis'i  and 
Mercantile  —  Fires  in  United  States  —  National  Boiler 
Dividend  —  Provident  Association  of  London  —  Scottish 
Lite  Meeting  (p.  204). 


American  Business  Notes  : — World's  Gold  Production  Estimates 
—  United  States  Exports  —  Steel  Corporation's  Quarterly 
Report  (p.  204), 

Mining  News : — Broken  Hill  Proprietary  —  East  Indian  Coal  — 
Broken  Hill  South  Silver  —  Transvaal  and  Delagoa  Bay  — 
Hampden  Cloncurry  (p.  206). 

Tea,  Oil,  and  Rubber  : —  Rubber  Market  —  United  Serdang 
(Sumatra)  Rubber  Plantations  (p.  208). 

Company  Meetings : — The  Canadian  Bank  of  Commerce  — 
Imperial  Tobacco  Co.  (of  Great  Britain  and  Ireland)  — 
The  Sterling  Trust  —  National  Provideiit  Institution  — 
Railway  Share  Trust  and  Agency  —  Railway  Debenture 
and  General  Trust  (pp.  208-11). 

January  Rubber  Outputs  (pp.  196-7). 

The  Week's  Stock  Markets  (pp.  201-2). 

London  Produce  Markets  (p.  203). 

Dividends  Announced  (p.  203). 

Books  Received  (p.  203). 

Public  Income  and  Expenditure  (p.  205). 

The  Week  in  Mines  (p.  206). 

Oilfields  Production  (p.  206). 

Answers  to  Correspondents  (p.  208). 

Flotsam  of  Russian  Revolution  (p.  211). 

Traffic  Returns  (p.  212). 


CANADA. 

THE  DOMINION  BANK. 

Head  Office,  TORONTO. 
Total  Assets    -      -    $97,061,000. 

SIR   EDMUND  B.    OSLER,  President, 
W.   D.    MATTHEWS.  Vice-President, 
C,   A.    BOGERT,  General  Manager. 


London  Branch,  73,  COBNHILL,  E.C.3. 

J.  HAYDN  HORSEY,  Manager. 

Dealers  in  Canadian  and   American   Exchange. 
General  Banking  business  transacted.   Informa- 
tion furnished  regarding  Canadian  matters. 


ROYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  1727. 

PAID-UP  CAPITAIi £2,000,000 

REST  AND  UMDIVIDBD   PROFITS  914,968 

DEPOSITS 26,177,866 

Head   Office:    ST.    ANDREW   SQUARE,  EDINBURGH. 
Cashier  and  General  Manager,  A.  K.  Wright.        Secretary,  J.  B.  Adshead. 

London    GfRce;    3,    BISHOPSGATE,  E.C.  2. 

WiLLUu  Wall»ci,  Manager.  Alex.  Dick,  Deputy-Manager. 

Glasgow  Office:     EXCHANGE  SQUARE. 

A.  Dennistoun,  Agent.  Thomas  Lillie,  Sub-Agent. 

167  Branches  throu^out  Scotland, 

Banking  Business  of  every  description  transacted.  Accounts  opened  and  Agency 
business  undertaken  for  Foreign  and  Colonial  Banks  and  other  Bnancial  estab- 
lishments. Drafts,  Circular  Notes,  and  Letters  of  Credit  issued  — available 
throughout  the  world.  Cable  transfers  are  also  made.  Deposits  received  at 
iotarest  rtpayablt  at  call  or  at  notice,    Conatpoodence  invited. 


THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 
Pald-ap  Capital    ..    £350,000    0    0     25,000  Shares  of  ;f  10  each. 
Reierie  Fond  . .     . .  £700,000    0    0  |  Reaerire  PraSta    . .  £18,088 

Raaervaa  uiaDlllty  of  Bhareholdera  £280,000, 

Draflfi  Isiucd.  Remittances  cabled,  Bills  negotiated   or  collected.     Deposits 

reoaived  for  fixad  puriodi  at  rates  to  oe  aseertalned  on  application,  and  all 

banWi^  and  exchange  bunness  connected  with  WefUm  Australia  conducted 

tbioui^  the  London  AiKDts.  The  Bank  of  Adelaide,  11,  Leadenhall  St.,  E.C.S 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the  Imperial 
Japanese  Government,  1899. 


HEAD  OFFICE      > 


TAIPEH,    FORMOSA. 


BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Scerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1 880, 

Subscribed  Capital        Ten  48,000,000 

Capital  Paid  Up Yen  36,000,000 

Reserve  Fund         ..        ..  ..    Yen  22,100,000 

Head  Office :  YOKOHAMA. 
Branches  and  Agencies  at 
Bombay.  Honolulu.  New  York.  Singapcart. 

Calcutta.  Hong  Kong.  Osaka.  Sydney. 

Changchun.  Kobe.  Peking.  Tientam. 

Dairen  (Dalny).  Los  Angeles.  Rangoon.  Tokyo. 

Fengtien  (Mukden).       Lyons.  San  Francisco.  Tsinanfa. 

Hankow.  Nagasaki.  Seattle.  Tsingtau. 

Harbin.  Newchang.  Shanghai. 

The  Bank  buys  and  recaivas  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  transacts  General  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtaina  i  on  applicaticn. 
London  Office:  7,  BISHOPSGATE.  E.C.i. 

K.  TATSIJMI,  Manager. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  x88o. 

Authorised  and  Issued  Capital,  ^6,000,000. 

Paid-up  Capital.  £2,000,000;  Reserve  Fund,  ;C2i°'^iC>oo;  togethei   £4,«oo,ooo 

Reserve  Liability  of  Proprietors , 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OFFICE   -        -         -        71 .  CORNHILL,  LONDON,   E.G.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Australian 
States  and  Dominion  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  ar«  received  for  fixed  period*  on  terms  which  may  be  ascertained 
OQ  application. 


i66 


tCbe  investors'  "Keview. 


f  EBBUABV  23,    1918. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  OfTieei  15,  Gracechtirch  Street,  Loodoo,  E,C.  ». 


Capital  AaifcflciKrf 
Capital  kMtcd  ... 
Capital  Paid  Up ... 
RcKfTC  Food      ... 


£1400.000 

1,12MI00 

562^00 

MXVOOO 


INDIA.  BURMAH.  CETUON,    STRAITS   SETTLEMENT* 
CHINA.    AND    rORT    LOUIS.    MAURITIUS. 


fe^*  tmd  MO* 


I  «(  Errtiiitp. 

Mldivaad  aceat, 

fWEa«,aataaH  (a  bcka4aai„_ 
OCMMTTSncchredlorMM^var  a<  5|Mre(at.F«i 


Ob  oM»t»t  acoeuitt* 


MMvcar : 


BaftaaCoF  odkcc 


lU^I 


la(sfar« 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Erabubos  dfc 

Ai>tkmisc4  Ca»ital  <4.M*. 

Paid-«B  Capital 1.1 

Bcacrrc  F»i< 1>< 

AU^EMTMB.  — Bmim*  Ain*.  BMOdo,  Vtmaan.  Cm 
Bbaca,  ConMfa,  Tiifita,  rwt,  Hifr»fa»  (Bacao* 
(Ba«M  iUnr«.  Boca  (Sacaos  iUnrt.  CaMe  Sana  F<  (Bacae* 
CM*  B  ae  Iripayaa  (BamiiAteM^.  OSUCUAY^Moali 
MctfttilfB  ApMCT  (CaBa  Bia  Kcpmh  Pljifla  (Actacf),  Sallo 
(Ullfafjl  NtAZIL.  —  Bia  da  liarira.  Sai>  Paala,  Saataa,  Par- 
aartarn.Paci.Bidiia.Vklaria.cATba,  Miaiw  (AaaKy).  CHIU— 
lUfaofaa.  Saatiaca.  FBAMCE-Aci*  M  Bae  BUtan- 
Kew  Ye«t  ij  llaiaH  lla—iAnatttewwM. 

»at,fiiail^aa<  £ablaTiaarfm  Iwarl    KB* 
«r  wat  far  apBaf Waa.  —7,  P»taeaa  S«wat.  KjC.  %. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 


•jjt  Bii»i  r  u!«'-  h  ', 


I  UaWfitf  af  napdttns 
•ntnTAMCBS  aafc  b*  CABLE. 


«1, 276.747  10  O 
669,688  0  O 
87S.680  1  1  8 

606.9ea  10  o 


DBAFTSy^  LETTEBS  OT  CaXCKt  aad  CUCOLAR  ROTES  iaMad  vaa 

MBCOTUTEO  ar  aaat  fare 
far  fwlpli  aad  at  aitaa  < 

«<  ataryda 


ROf  «a 

rarasm 


ENGLISH,    SCOTTISH,     AND    AUSTRALIAI 
BANK,  LIMITED. 

»i<Mci>ijC«al«al £i.i9e.l»  a  a 

Baaarro  l^|ia<_  .^      ..      .^      ..  jw^aw  a  a 

UnrSBS  or  CBEDfT  aa4  DRAVTS  aa  *•  BcMifeaf  aad  Atcaaafaa  tl 
.»aBaafcfadawiiBiaiabaattifaada«l>alfaadO<fca,ari>«iDi«fcl>a<»aw 
«<*a»ai<fc,fa*a«W«<»rnii«aifatti—a<fcrMW>aatitaOaHa<«t^to^ 
REMnTAlfCnt  anda  ky  TBtSOSAPMIC  TRAMMWR. 
•tlXS  mCOTUTO)  ar  faraMfad  far  COfXBCnOM. 
.  RARKMIC  mA  «»CimH»  Bud^iii  almrj'  iww^dia  waiiMil  »kk 

E.  M.  lAMIOM, 


BANK   OF    NEW   ZEALAND. 

^JneorpvraUd  Jntr  agth,  iSei.) 
■dams  TO  THE  >BW  ZldLARD  OOTEBRMMT. 
London  Ofltee :  i«  Queen  Victoria  Street,  London,  B.C.  4- 

AtfTHOeiSED  CAPITAL       ^),Seaba*a 

SUBSCKIBED  CAPITAL. 

"A"  ftafawaa  atorai  <i»ai<  fa  Raw  Zaalaad  Cni'ira«aa< 
"B"  Pmftawi  jfcaai  faaaad  fa  R—  Talaai  Co»iraaiaal 

OtdlawyWwrw  .,      t.j 

f«,yw.a» 
Biawo  raad  and  UnWiMai  f*-^^^        -Ca^^Mri 

I  tJStm  ifa  om»mimm»»  Tialaad,  llaWwHi.WyMidliiiii    Ri>- 
'  I  bv  ufacBMbfa  MMifar. 
•T  -  -^  .     -  «— -  ALEXARDEB  EAT. 


BANKS. 


BANK  OF  NEW  SOOTH  WALES 

^^  EtUMuktt  Ut7 

raid  an  CsBital £3,904,860 

BcMnra  Faad     2,876,000 

Bcterv*    Liabili^r   •* 

3,904,860 

C10,684,720 


Sir  Fi 
H.  L.  M.Tnnsn.  Ea«. 

Dana  Caoaaa.  Ri 


ThaBaakhaaMt 


Raw  Taihail.  WjL  fiipaa  Qtem  Cajaral,  aad  t  lalw.  aad  Aanti 
riiirr^fi>ailfatiae»art>aWarid.«a»lwlfc«toa*»a  OtCet  ft 
CIcadKUtMBiafCcadkaadCiaealarRatak   Afaa 
'     Makaa  Mad  Md  CaHa  TcMifaBr.    Ifaaad^ 

Batdi'W  Dayadla  far  Fixad  Pofada  aa 


London  Ofllca:  29,  THBEADHEEDLE  STBEBT.  RX.  *. 


THE   BANK   OF   ADELAIDE. 

•    <I.MI,m.  t^burtMa  CapHal    - 

PiidapCaplfal       £yxax 

~  1  i*a/n> 

£t/nfi/aa> 

ICaaftu in,<»o 

I.latB>jafftiiiitili1rr»      Oij/m 

InailaarMlaa    ti.1  niMtiBirWM»,RC5- 

BILLS  aaAaatcatariaaaackiaad  ar  fwBwtad 

DBAFTS  faMMdMd  nUflTTARCES  caMad. 

PEPOSlTSiaiaiiad  far  Iliad  ftdafaatcMaaiabaiirifflaiailaaiafBitlw. 

PEBCT  ABROLO  Naaagar. 


INSURANCE. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to   its   Policyholders   in   1917  over 

«9,T00,000 
or  over  £31,000  for  each  Working  Day. 


Cbe  3nve0tor6'  'Review. 
SCALE  OF  CHARGES  FOB  ADVERTISEMENTS. 


PnU  Pagt ^B28     O    O 

Under  on*  page,  at  per  inch,  ISO 

■n^ecolnnm 
Special  positioos  bjr  anangement 


£4      O    O 

PerCtrfnam. —         6    11     6 

OOBI^RMIRR'    BALANCE-SHEETS. 

WboleFhge  «1S   15    O 

HaM  page 8      a    • 

Quarter  Page  ...  ...  4      a    8 

OfVtDRMD    NOTICES,    &C. 

PWlndi «0    12     6 

■AMR*    AMD    IHSURAMCE    COMPANIES. 

Pnmt  Pace  (cover)  ladagMooer 

Article  or  cpedalpocHion,  per  indUBO  16    O 
Ordtnarjr  poeition.  per  inch     ...         O    1 9   S 
Diccot'KT  FOB  Sebies.— 3%  for  Tfairteen.  10%  for  Twenty-aia, 
15%  for  Thirty-nine,  and  20%  tor  Fif tjKwo. 

"INVESTOBS'  BEVIBW,"  Noarou  HoOTB.  HaaaoL*  Staaar.  Srauia. 
LoMOaa,  WX. 


XLhc  5nvcetore'  IRcvicw. 


Vol.  XLI.— No.  1,051. 


m  luiM. 


SATURDAY,  FEB.  33,  1918. 


(■«255:J')  Price  6d. 


PUBLISHER'S    NOTICES 

IbC  JnreStOrS'  'FCriCW  is  a  subscription  journal.  andwUl 
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One  Vev,  £1  Ss.  Od.    Six  Mootbs,  12s.  6d.    Three  Nonthi,  6s.  6d. 

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On*  Guinea,  each  list  different. 


Passing   Events. 

The  M.P.  who  observed  that  if  the  last  Ministry  is 
worthy  of  being  daubed  the  "Old  Gang,"  then  the 
present  one  ought  to  be  called  the  "  Press  Gang,"  had 
a  mordant  wit.  Mr.  Lloyd  George  would  have  had  no 
crisis  to  encounter  this  week  but  for  the  Press  which 
supports  him.  As  it  was,  the  whole  country  was 
stirred  to  an  unusual  degree  of  doubt  and  suspicion. 
It  was  feared  that  some  pact  had  been  made  at  V'er- 
sailles  dishonourable  to  this  country  or  derogatory  to 
the  position  of  its  commanders  in  the  field,  and  keen 
emotions  of  disgust  were  aroused  by  the  infamous 
manner  in  which  coming  changes  were  heralded  and  the 
characters  of  important  soldiers  held  up  to  obloquy  by 
Mr.  George's  favoured  Press  supporters.  Not  a  word 
too  much  was  said  by  Mr.  Chamberlain  on  Tuesday 
evening,  when  he  declared  that  "  the  attacks  made  are 
not  only  deplorable  in  themselves,  but  also  cowardly." 
"The  men  who  make  them,"  he  went  on,  "are  not 
only  acting  in  a  way  in  which  patriotic  citizens  would 
not  act  in  war-time,  but  they  are  acting  in  a  way  gentle- 
men do  not  a«  at  any  time."  Unfortunately  the  Prime 
Minister  appears  to  be  immovably  under  the  influence 
of  the  men  who  control  these  newspajiers,  and  in  other 
respects  his  unaccountable  indifference  to  what  is  ex- 
pected of  him  in  his  position  is  too  well  calculated  to 
weaken  his  influence  and  hinder  him  in  the  progress 
of  his  oft-proclaimed  task  of  winning  the  war,  so  that, 
although  the  threatened  crisis  has  not  come  to  a  head 
and  driven  him  from  his  position,  the  lack  of  con- 
fidence remains,  and  is  beginning  to  be  felt  at  least  as 
much  at  the  front  as  here.  Otherwise  the  explanation 
given  by  him  of  the  reasons  whv  Sir  William  Robertson 
was  no  longer  Chief  of  the  Staff,  and  regarding  the 
arrangements  made  for  the  conduct  of  the  war  at  the 
last  Versailles  Conference,  would  have  calmed  down 
the  country  as  it  did  the  House  of  Commons.  As  it  is 
the  distrust  continues.  Is  it  too  late  to  hope  that  Mr. 
Lloyd  George  has  strength  oi  character  and  knowledge 
of  his  countrymen  sutFicient  to  make  him  able  to  lift 
himself  clear  of  these  degrading  surroundings?  We 
hope  it  may  be  so,  but  until  the  doubt  is  removed  our 
liability  to  periodic  spasms  of  dread  will  continue.  The 
nation  feels  that  its  public  life  is  being  debauched,  not 
merely  by  the  part  these  friends  of  the  Prime  Minister 
are  allowed  to  play  in  shaping  the  conduct  of  its  affairs, 


but  by  the  anti-democratic  and  indiscriminate  profusion 
with  which  "  honours  "  are  scattered  on  the  unworthy, 
like  tares  from  the  hand  of  the  sower. 


Sales  of  National  War  Bonds  were  smaller  last  week 
by  ;^5, 602,000  at  ;^i8,032,ooo,  but  that,  we  hope,  is  no 
indication  of  an  exhaustion  of  the  reservoir,  for  the 
collection  of  taxes  goes  on  at  a  high  pressure,  and 
from  the  income  and  excess  profits  taxes,  plus  super- 
tax and  munitions  levy,  the  revenue  was  last  week 
over  ;^24, 000,000 ;  the  total  income  of  the  week  being 
;^28,957,ooo.  Not  so  long  ago  that  would  have  been 
a  good  show  for  three  months.  We  cannot  in  these 
circumstances  expect  increases  in  the  War  Bond  sales 
until  after  the  fiscal  year  has  closed.  In  addition  to 
the  sales  of  the  Bank  of  England  issue^  whose  total 
product  is  now  brought  up  to  ;^369,924,^ooo  all  told, 
the  Treasury  also  received  in  the  week  ended  February 
9,  ;^992,ooo  from  the  sale  of  bonds  of  the  Post  Office 
issue.  The  number  of  applicants  increased  by  5,700 
to  41,700,  but  the  money  paid  in  was  ;^23,ooo  less. 
More  encouraging  results  are  to  be  noted  with  regard 
to  the  sale  of  War  Savings  certificates  in  the  week 
ended  the  9th  inst.  The  sales  numbered  2,907,891, 
raising  the  aggregate  of  the  certificates  outstanding  to 
i5i,B96,848.  The  total  sold  in  the  week  indicated  was 
the  largest  yet  attained,  and  it  is  possible  that  with 
some  development  in  the  method  of  attracting  the  money 
of  the  multitude,  a  considerable  increase  in  the 
Treasury's  war  income  might  yet  be  obtained  from  this 
source.  The  Government  certainly  wants  the  money, 
for  from  all  these  sources  of  debt-provided  revenue,  the 
total  received  since  the  middle  of  October  last  has  been 
only  ;^no5, 328,000,  and  the  whole  of  that  is  not  "  new 
monev." 


Last  week's  expenditure  of  all  kinds  was  compara- 
tively small  at  ;^i04,22i,5o6,  a  mere  year's  revenue  In 
the  days  before  the  last  South  .Vfrican  war.  The  week 
before  the  total  was  ;^i 52,529,000.  On  supply  ser- 
vices, however,  the  expenditure  was  fully  ;^6,ooo,ooo 
more  at  ;^4a, 250,000,  or  ;^6,036,ooo  per  diem.  The 
total  of  the  actual  disbursements  of  the  week  was,  in 
fact,  ;£^46,oi8,ooo,  compared  with  less  than 
;^42,ooo,ooo  the  previous  week,  the  aggregate  having 
been  raised  to  this  figure  by  ;^3,74i,ooo  absorbed  by 
debt  interest.     What  reduced  the  gross  disbursements 


1 88 


TLbc  Jnvestots'  "Review. 


February  23,  1918. 


of  the  week  was  the  smaller  mass  of  credit  overturn. 
There  were  only  _£,'42, 21 1,000  of  supply  Treasury  bills 
issued  against  ;^S2, 62 1,000  paid  off,  but  this  decrease 
of  over  ;^io,ooo,ooo  in  the  floating  debt  represented  by 
these  bills,  bringing  down  the  total  outstanding  to 
;^i  ,054,985,000,  was  partly  due  to  the  exchange  by 
subscribers  of  Treasury  bills  held  for  National  War 
Bonds.  To  what  extent  thas  surrender  has  gone  on  we 
are  not  told,  but  obviously  the  more  oF  existing  debt 
merely  converted  into  the  new  forms  of  debt,  the  less 
cash  does  the  Treasury  receive.  We  must,  therefore, 
bear  a  fact  of  this  kind  in  mind  when  judging  the  finan- 
cial position  of  the  Treasury.  Besides,  however  the 
credit  renewed  on  supply  Treasury  bills,  the  Govern- 
ment received  ;^2, 600,000  from  the  sale  of  War 
Savings  Certificates,  ;^2,5i8,ooo  from  other  war  debt, 
;^i9, 103,000  from  National  War  Bond  sales,  and 
;^9,ooo,ooo  from  temporary  advances.  There  were 
;^3,oc)o,ooo  of  temporary  advances  paid  off,  so  that  the 
floating  debt  in  that  form  was  increased  by  no  more 
than  ;^6,ooo,ooo  last  week.  War  Loan  and  Exchequer 
Bonds  to  the  value  of  ;^2, 418,000  were  also  paid  off, 
and  it  would  be  interesting  to  know  if  any,  and  how 
much,  of  this  sum  is  represented  by  bonds  surrendered 
for  the  Bank  of  England  War  Bond  issue.  The  total 
week's  outgoings  were  ;^'268,ooo  less  than  the  receipts, 
consequently  the  Exchequer  balances  were  raised  to 
;^i6,o59,375  by  this  little  remnant.  A  year  ago  the 
Exchequer  balances  were  ;^24,748,ooo. 


an  ant-heap  of  scurrying  functionaries,  each  ignorant 
of  the  other's  occupation,  each  ignoring  the  mission  of 
the  other,  until  the  marvel  to  us  is  that  such  order 
and  efliciency  as  does  exist  should  be  maintained  at 
the  front  and  on  the  sea  by  our  Army  and  Navy. 


Up  to  the  end  of  last  week  the  total  revenue  en- 
cashed by  tlie  Treasury  in  the  present  fiscal  year  was 
;^563,8i  1,000,  and  of  that  revenue  about  ;^35 1 ,000,000 
came  from  the  property  and  income-tax  and  the  excess 
profits  duty,  with  the  additions  thereto.  The  land 
values  duties  have  contributed  only  ;^55o,ooo,  but 
estate  duties  have  yielded  ;^27,48i,ooo,  as  compared 
with  ;^33,667,ooo  provided  by  the  Excise,  and 
;^6i,72i,ooo  drawn  from  the  Customs  tariff.  These 
relative  sums  suggest  that  changes  of  a  fundamental  as 
well  as  a  far-reaching  description  will  be  necessary  in 
our  scheme  of  taxation,  and  curiosity  about  the  coming 
Budget  will  increase  from  now  to  the  day  when  Mr. 
Bonar  Law  opens  his  Pandora's  box  at  the  beginning 
of  the  new  fiscal  year.  We  do  not  envy  him  his  job, 
but  it  is  permissible  to  hope  that  he  will  have  the 
courage,  the  perspicacity,  and  the  independence  of  mind 
requisite  to  produce  a  system  of  imposts  based  on  prin- 
ciples of  equity,  not  only  as  between  class  and  class, 
but,  as  far  as  possible  also,  between  man  and  man. 
If  he  fails  to  do  that  we  fear  the  times  immediately 
ahead  are  bound  to  be  stormy  enough  to  gratify  the 
subversive  instincts  of  the  wildest  amongst  our  discon^- 
tented  masses. 


Mr.  Macplherson  is  a  rising  young  man  in  politics, 
and  his  speech  introducing  the  Army  estimates  for  the 
coming  fiscaJ  year — mere  token  estimates,  of  c»urse — 
will  enhance  his  reputation,  except  as  an  orator,  and  in 
the  matter  of  oratory  he  should  make  haste  to  take 
lessons  from  some  competent  teacher  of  elocution.  We 
have  room  only  to  gl\e  a  few  of  the  figures  he  reeled 
off,  just  to  illustrate  why  we  at  home  should  be  short 
of  food.  Last  year  nearly  7,000,000  of  men,  500,000 
animals,  over  300,000  vehicles,  and  over  9,500,000  tons 
of  stores  were  taken  to  the  fronts.  Over  1,000,000  men 
and  a  large  quantity  of  stores  were  conveyed  by  water, 
the  traffic  totalling  230,000,000  tons,  and  the  feeding 
of  these  immeni.se  hosts  alone  ran  up  to  formidable 
figures  in  quantities  as  well  as  in  cash  : — 270,000,000 
rations  of  preserved  meats,  costing  _;^  12, 000, 000,  were 
consumed,  together  with  84,000,000  lbs.  of  tea, 
177,000,000  lbs.  of  sugar,  and  145,000,000  tins  of  milk. 
The  Army  and  Navy  also  consumed  8,500,000  lbs.  of 
tobacco  and  11,000,000  lbs.  of  cigarettes.  Also 
250,000,000  yards  of  wool  and  textiles  were  bought,  if 
not  all  consumed.  Wool  alone  cost  ;^88,ooo,ooo,  and, 
in  addition,  there  was  a  huge  consumption  of  medicines 
and  medical  appliances  of  all  kinds.  The  total  war  pur- 
chases of  manufactured  goods  was  ;^270, 000,000,  of 
which  ;^26,ooo,ooo  went  to  the  Allies,  and,  in  addi- 
tion, ;^i  13,000,000  was  paid  for  raw  materials.  It 
would  be  interesting  to  know  how  much  of  these  huge 
sums  was  wasted.  We  guess,  somewhere  between  a 
fourth  and  a  third.  For  the  current  year  the  vote  is 
asked  for  5,000,000  men,  and  up  to  the  present  the  war 
has  involved  the  placing  of  about  10,000,000  of  women 
and  children  on  the  Army  Pay  List  as  widows  and  de- 
pendents of  the  soldiers. 


.A.nd  the  worst  of  it  is  that  nothing  whatever  worth 
speaking  about  is  being  done  tc  restrain  expenditure. 
Always  when  we  look  at  this  side  of  the  world  conflict 
now  raging  we  are  tempted  to  despair  of  the  future. 
There  does  not  seem  to  be  the  slightest  conception  in 
Government  circles  of  what  waste  of  money,  even  a 
small  waste,  may  imply  to  the  country  and  the  Empire 
when  peace  returns.  The  dictatorship  under  which 
we  are  compelled  to  live  creates  new  posts,  new  minis- 
tries, one  might  say,  almost  every  week.  Each  De- 
partment, new  or  old,  with  a  rapidity  which  looks 
purely  magical,  multiplies  its  staff.  Such  is  the  multi- 
tude of  officials  and  clerks  of  all  kinds  now  called  into 
existence  that  the)-  simply  get  in  each  other's  wav  in 
the  effort  to  perform,  witfiout  training  or  knowledge, 
the  duties  to  which  they  have  been  hastily  summoned. 
No  Parliamentary  or  other  Committee  is  really  able 
to  check  or  reduce  expenditure  thus  generated.  Par- 
liament has  no  control  over  or  voice  in  the  creation  oT 
any  office.  We  see  still  going  on  in  London  the  erec- 
tion of  whole  villages  of  fresh  offices,  and  the  com- 
mandeering of  buildings  already  in  existence  without 
regard  to  any  rights  of  their  occupiers  whatsoever, 
totally  heedless  of  the  expense,  makes  one  wonder 
whether  astute  speculators  may  not  be  taking  advan- 
tage of  ministerial  omniscience.      London  is  becoming 


A  letter  of  no  small  cogency  has  been  sent  to  us  from 
the  As.sociation  of  West  African  Merchants  in  Liver- 
pool. It  is  signed  by  Messrs.  Joseph  Crewdson,  chair- 
man, and  Edward  B.  Crooks,  secretary,  and  we  regret 
that  we  cannot  in  these  days  make  room  'for  it  at 
length.  It  may,  however,  be  said  that  it  traverses  the 
position  taken  up  by  the  Empire  Resources  Develop- 
ment Committee  as  revealed  in  a  reply  made  by  it  to 
a  previous  letter  from  the  association.  In  essence  the 
committee  stands  for  freedom  and  room  for  individual 
enterprise  in  trade,  and  it  criticises  with  some  sharp- 
ness the  tone  taken  up  by  the  Empire  Resources 
Development  Committee,  which  seems  to  sneer  at  the 
apparent  altruism  of  the  association.  "The  issue," 
the  letter  concludes,  "  is  simple.  It  is  whether  in  the 
development  of  West  .Africa  we  should  rely  upon  free 
enterprise  or  resort  to  the  old,  discredited  policy  of 
concessions — the  "  plantation  "  policy — and  the  writers 
refer  with  approval  to  the  management  of  the  French 
West  African  Dominions  in  "  giving  the  freest  |X)ssible 
play  to  indi\  idual  enterprise  on  the  part  both  of  pro- 
ducer and  merchant,  keeping  the  Government  in  an 
independent  fwjsition,  which  is  »ts  proper  place." 


.'Australian  papers  come  so  irregularly  nowadays  that 
the  subjoined  table  setting  forth  in  a  summary  fashion 
the  position  of  .Australasian  banks  at  the  end  of  the 
September  quarter  is  belated.  We,  however,  make 
room  for  the  (following  table,  extracted  as  usual  from 
the  Australasian  Insurance  and  Banking  Record,  so 
that  the  .Australians  here  and  others  interested  in  the 
finances  of  these  countries  may  have  the  facts  at  hand 
for  reference.  The  table  appended  combines  the  figures 
of  the  21  joint-stock  banks  of  .Australia  and  New 
Zealand,  plus  those  of  the  Commonwealth  Bank  of  -Aus- 
tralia, and  as  usual  shows  a  marked  increase  in  the 
liabilities  and  a  less  marked  increase  in  the  assets,  com- 
paring September  last  with  the  same  date  in  1916.  It 
will  help  to  an  understanding  of  this  table  if  we  men- 
tion that  the  Australian  banks  alone  show  an  increase 


Februarv  23,  1918. 


XTbe  Jnveetors*  Review. 


189 


of  ;^i  2,793,000  in  their  deposit  liabilities  compared 
with  the  same  date  in  1916,  while  their  advances  have 
shrunk  ;^4,o99,ooo.  New  Zealand  banks,  on  the 
other  Iiand,  also  show  an  increase  of  £5>375>°°o  »" 
their  deposit  liabilities,  of  which  ;^3, 428,000  represents 
interest-bearing  deposits,  but  their  advances  have  g^ne 
upbv  ;^"6,48i,ooo,  so  that  their  nctt  banking  resources 
are  ^,1,106,000  down,  whereas  those  of  the  Australian 
banks  are  ;^i6, 892,000  up.  Out  of  the  total  liabilities 
of  the  banks  to  depositors,  &c.,  shown  at  ;^236, 423,000 
in  the  table,  the  Commonwealth  Bank  accounts  for 
^"25,530,000,  and  at  September,  1913,  the  deposit  and 
;  current  account  liabilities  of  tjiis  State  bank  were  barely 
;^i, 471,000.  In  Australia  the  banknote  circulation 
continues  to'  dwindle,  being  replaced  by  notes  issued 
by  the  Commonwealth  Bank.  In  New  Zealand,  where 
there  is  as  yet  no  bank  nominally  in  a  position  of  a 
State  institution,  the  note  circulation  tends  steadily 
upwards,  so  that  while  the  paper  money  of  Australian 
banks  has  fallen  to  less  than  ;^24i,ooo,  the  banks  in 
the  Dominion  of  New  Zealand  have  increased  their 
circulation  from  ;^4, 330,000  at  the  end  of  September, 
1916,  to  ;^5,65i,ooo  at  the  end  of  September  last.  The 
increase  Is  ^1^1,321,000  on  the  year,  and  ;^76o,ooo  on 
the  quarter  ended  September  last.  Since  the  June 
quarter  of  igti,  Australasian  banknotes  to  the  value 
of  ;^3,478,ooo  have  been  withdrawn  from  circulation. 
As  recently  as  September,  1914,  the  total  note  circula- 
tion of  the  banks  in  New  Zealand  was  ^^2, 013,000,  and 
the  year  before  it  was  only  ;^i, 610,000. 

The  cash  holdings  of  the  various  banks  continue 
satisfactory,  although  reduced  compared  with  the  pre- 
vious year.  The  coin  and  bullion  and  legal  tender 
notes  held  by  the  'oint-stock  banks  in  the  Common- 
wealth was  at  September  30  last  ;^42, 21 1,000.  The 
year  before  it  was  ;^43, 120,000,  and  two  years  before 
;^5S, 626,000.  The  decrease  in  the  cash  assets  of  the 
Commonwealth  Bank  of  Australia  has  been  more 
marked,  its  cash  having  been  ;^i  1,220,000  in  Sep- 
tember last  and  ;^i 7, 266,000  at  the  end  of  September, 
igi6.  Banks  in  New  Zealand  have  increased  their 
cash  from  ;^7,oo3,ooo  in  September,  191 5,  to 
;^9, 847,000  in  September,  1916.  Putting  all  the  banks 
together,  including  the  Commonwealth  Bank,  the  de- 
cline in  the  cash  resources  has  been  from  ;^68, 858,000 
at  the  end  of  September,  1916,  to  ;^63, 279,000  last 
September,  but  the  decrease  on  two  years  ago  is  barely 

;^I,000,000. 

The  Position  of  Banks  in  Australia  and  New  Zealand. 


I 


Liabilities. 
Deposits — 
Not  bearing  interest    .... 
Bearing  interest   

Savings  Bank  deposits  (Com- 
monwealth Bank)    

Perp.  inscribed  stock  (E., 
S.,  and  A.  Bank) 

Notes  in  circulation 

Bills  in  circulation 

Balances  due  other  banks  .. 
Total  liabilities     

Coin,  bullion,  and  legal 
tender  notes 

Notes  &  bills  of  other  banks: 

Bines,  due  f'm  other  banks'; 

Advances,  &c.t 

Govt,  and  municipal  sec] 
(Commonwealth  Bank)  . . 

Landed  property,  &c 

Total  assets  


Sept.,  1916. 


Sept.,  1917, 


111,909,265 
107,740,497 


219,649,762 
9,486,832 

1,969,310 

4.583.555 
1,400,513 
3,816,093 


240,906,065 

68,857,950 

2,107,616 

4,986,103 

164,207,995 

8,914,891 
5.915.765 


354,990,320 


122,170,378 
114,252,158 


236,422,546 

12,447,034 

1.952,591 
5.891.704 
1,469,622 

3.838.837 


262,022,324 

63,278.529 

2,283,682 

5,529.092 

169,651,353 

12.022.441 
5.881,330 


258,646,427 


Movement. 


+  10,261,113 
+  6,511,661 
+  16,772,774 

-f   2,960,202 

16,719 
+  1,308,149 
+  69,109 
+ 22.744 


+  21,116,259 

—  5.579.421 
-I-  176.066 

+  542.989 
+  5.443.358 


+ 


3,107.550 
34.435 


+  3,656,107 


*  Including  balances  due  from  other  banks  to  Commonwealth 
Bank.  Sept..  1916,  /2,9ii,379;  Sept.,  1917,  ;f2,88o,590. 

t  Including  Govercment  and  municipal  securities,  except  those 
held  by  the  Commonwealth  Bank,  which  are  shown  separately  in 
the  next  line. 


In  spite  of  all  its  faults,  we  turn  to  the  report  of  the 
lx>ndon  and  North-Western  Railway  Co.  with  the  confi- 
dent assurance  that  on  the  main  lines  of  railway  jx)licy 
it  affords  a  very  fair  standard  by  which  the  others  may 
be  judged.  Before  the  war,  when  full  figures  were 
available,  it  was,  like   the  rest,    rather   a  glutton    on 


capital  expenditure,  but  it  also  dealt  liberally  with  the 
provision  for  maintenance  and  repairs,  so  that  the  per- 
manent way  and  rolling  stock  were  always  kept  at  a 
high  ,s'tate  of  efficiency.  Consequently  it  is,  perhaps, 
able  to  stand  the  strain  of  war  conditions  better  than 
most  of  its  neighbours,  and  yet  we  find  that  the  direc- 
tors deem  it  prudent  to  double  the  appropriation  to  re- 
serve at  ;^'4oo,ooo,  exactly  the  same  policy  as  has 
raised  tihe  wrath  of  a  section  of  the  Great  Western 
stockholders.  It  is  true  that  the  reserve  and  deprecia- 
tion funds  of  the  former  are  not  so  large  as  those  of 
the  latter,  but  possiiWy  its  necessities  are  not  so  great. 
On  that  point  it  is  impossible  to  express  a  definite 
opinion,  but  we  are  perfeatly  certain  that  in  neither 
case  are  the  funds  more  than  the  commonest  sort  of 
prudence  would  suggest.  Last  year  the  North-Wes- 
tern's gross  receipts  amounted  to  ;^2 1,484, 000,  an  in- 
crease of  ;^2, 050,000,  while  the  expenses  were 
;^i, 930,000  higher  at  ;^i 5,587,000.  General  interest 
brought  in  ;^58,ooo  mo're,  and  total  nett  revenue  credits 
were,  on  balance,  ;£^43,ooo  higher,  while  ^64,000  more 
was  brought  in,  with  the  result  that  the  total  balance 
available  is  up;^222,oooat  ;^6,678,ooo.  Fixed  charges 
require  ;^io,ooo  more  at  ;^i,6o8,ooo,  and,  after  placing 
;^40o,ooo  to  reserve,  as  already  mentioned,  and  re- 
peating the  dividend  of  6  per  cent,  (of  which  2^  per 
cent,  has  already  been  paid),  the  carry  forward  is  in- 
creased by  ;^i2,ooo  to  ;^,"25o,30o.  During  the  year  de- 
preciation and  reserve  funds  have  been  increased  by 
;^^ 1, 120,000,  and  now  stand  at  ;^5,670,ooo,  but  they 
might  very  well  be  a  great  deal  more  without  being  ex- 
travagant. Capital  expenditure  amounted  to  ;^289,ooo, 
against  ;^520,ooo  in  1916  and  ;^830,ooo  in  1915,  and 
the  account  is  now  ;^5, 530,000  overdrawn.  But  the 
company  has  loads  of  funds  to  draw  on,  and  the  posi- 
tion need  not  embarras  it  for  the  tiine  being. 


We  can  sympathise  with  the  laudable  ambition  of 
the  Great  Central  Railway  to  pay  the  full  dividend  on 
all  its  preference  stocks,  and  it  is  getting  very  near 
the  goal.  Only  £77,500  more  is  wanted,  tPut  it  is  hard 
to  come  by  in  these  times,  and  we  are  not  sure  that 
the  directors  are  prudent  in  trying  to  rush  the  last 
lap  too  quickJy.  Gross  receipts  in  1917  amoimted  to 
£^7,832,000,  an  increase  of  ;^765,ooo,  and  expenses 
were  ;^748,ooo  higher  at  ;^5, 728,000.  Miscellaneous 
credits  brought  in  ;^5,ooo  less  at  £135,000,  and  the 
total  nett  income  was  therefore  ;^i2,ooo  up  at 
;^2, 239,000.  Thanks  to  a  reduction  of  interest  on 
Lloyd's  bonds  fixed  charges  were  reduced  /,"3,ooo  to 
;^i',357,ooo,  and,  including  ;^i,ooo  more  brought  for- 
ward, the  available  balance  of  ;^8go,45o  shows  an  in- 
crease of  ;^i6,ooo.  All  but  ;^50o  of  this  gain  is  used 
to  raise  the  dividend  on  the  1894  preference  from  2 
per  cent,  to  2 J  per  cent.,  and  tlie  balance  forward  is  a 
trifle  higher  at  ^8,880.  These  figures  do  not  reveal  a 
particularly  strong  case  for  increasing  the  dividend, 
and  when  we  find  that  only  ;^26o,ooo  has  been  added 
to  depreciation  funds  (including  arrears  of  mainten- 
ance), making  the  total  for  all  purposes  ;^i, 606,000,  we 
have  a  feeling  that  the  small  gain  in  nett  revenue 
ought  to  have  been  added  to  the  reserves ;  indeed,  it 
is  more  than  doubtful  whetihcr  any  dividend  ought  to 
have  been  paid  on  the  junior  preference  issues  in  the 
past  two  or  three  years. 

In  1916  the  dividend  of  the  London  General  Omni- 
bus Co.  was  reduced  from  12  per  cent,  to  8  per  cent., 
and  for  the  past  year  it  has  suffered  a  further  diminu- 
tion to  7  per  cent.,  but  this  is  mainly  the  result  of  the 
pooling  arrangement  with  the  City  and  South  London, 
the  Central  London,  the  London  Electric,  and  the 
Metropolitan  Distrlot  railways,  which  constitute  the 
"Underground"  system..  The  traffic  receipts  of  the 
group  amounted  to  ^^5, 843, 000,  an  increase  of 
^565,000,  and  the  total  receipts  were  ;^623,ooo  higher 
at  ;^6,662,ooo.  Expenses,  prior  charges,  and  reserves 
aksorbed  ^610,000  more  at  ^6,142,000,  leaving  a  nett 
balance  of  ;^52o,ooo,  or  _;^i3,ooo  more,  for  division 
between  the  five  companies.  The  London  General 
Omnibus  takes  32  per  cent,  of  this  common  fund,  or 


igo 


Cbe  Jnveetore'  IReview. 


February  23,  1918. 


P 


;^  1 66, 500,  an  increase  of  ;^4,ooo,  but  as  its  gross  re- 
ceipts were  ;^3,402,ooo,  or  ;£j'3 10,000  more  than  in  the 
previous  year,  it  is  evidently  the  principial  revenue- 
earner.  Expenses,  however,  increased  ;^"300,ooo  to 
;^3, 186,000,  but  interest  and  dividends  produced 
;^2o,ooo  more,  and  the  nebt  profit  would  have  been 
better  except  for  the  fact  that  ^^34,000  had  to  he 
written  off  for  depredation  of  investments.  After  pro- 
viding for  the  dividend  of  7  per  cent.,  the  carry  for- 
ward is  increased  by  ;^i7,ooo  to  ;^38,550.  The  London 
Electric  Railway  obtained  gross  receipts  amounting 
to  ;6'i,  139,500,  an  increase  of  ;^i32,ooo.  Its  share  of 
the  common  fund  is  30  per  cent.,  or  ;^i56,ioo,  an  in- 
crease of  ;^4,ooo,  and.  after  repeating  the  dividend  of 
i\  per  cent.,  ;^45,ooo,  or  ;;£,'io,ooo  more,  is  placed  to 
reserve,  and  ;^30,65o  is  carried  forward.  The  Metro- 
politan Distract'^  gross  receipts  amounbed  to 
;^i,  122,000,  an  increase  of  ;^96,ooo,  but  the  company 
receives  only  12  per  cent,  of  the  common  fund,  or 
;£,'62,440,  an  increase  of  ;^i,6oo.  It  again  places 
;^4S,ooo  to  reserve,  and  pays  3  per  cent,  for  the  year 
on  the  second  preference  stock,  leaving  ;^29,ooo  to  be 
carried  forward.  Gross  receipts  of  the  Central  London 
amounted  to  ;^35 1,300,  an  increase  of  ;^34,ooo.  This 
company's  share  of  the  common  fund  is  20  per  cent., 
or  ;^io4,ooo,  an  increase  of  ;^2,7oo,  but  ;£'3,7oo  less 
was  brought  forward,  and,  after  again  placing  ;{j20,ooo 
to  reserve,  and  paying  3  per  cent,  on  the  deferred 
stock,  ;^i  1,150,  or  ;^i,ooo  less,  remains  to  be  carried 
forward.  The  City  and  South  London's  gross  re- 
ceipts amounted  to  ;;^258,23o,  an  increase  of  £2'j,ooo, 
and  its  share  of  the  common  fund  is  6  per  cent.,  or 
;^3 1,220,  an  increase  of  ;^8oo.  In  addition,  ;^6,ooo 
more  was  brought  in,  and  it  is  therefore  possible  to 
place  ;^25,ooo,  against  ;^2o,ooo,  to  reserve,  and  to 
repeat  the  dividend  of  i\  per  cent,  and  to  increase  the 
carry  forward  by  ;^4,ooo  to  ;^2 1,300.  Under  the 
oi.roumstances,  the  companies  have  all  done  better  than 
might  have  been  expected,  but  the  form  in  which  the 
accounts  are  presented  does  not  permit  a  close  analysis 
of  the  position  of  the  individual  members  of  the  group. 

There  is  no  gainsaying  the  hold  that  Selfridge  and 
Co.,  Ltd.,  has  secured  among  the  big  London  "  stores," 
and  the  report  for  the  year  to  January  31  informs  us 
that  in  every  one  of  the  214  departments  there  has  been 
an  increase  in  trade.  Pfofits,  after  payment  of  all  ex- 
penses, amounted  to  ;^2 58,760,  an  advance  of  ;^33,ooo 
on  the  previous  twelve  months,  which,  in  turn,  showed 
a  gaiin  of  ;^75,ooo  ovier  the  previous  year.  Munitioners 
and  others  have  had  a  lot  to  spend,  and  Selfridge's 
secured  a  good  share  of  the  custom  that  drifted  to 
many  of  the  West-end  shops.  Witih  about  ;^5o,ooo 
more  brought  in,  the  amount  available  for  distribution 
is  ;^82,ooo  up  at  ;^386,ooo,  but  this  handsome  total  is 
dealt  with  in  a  very  conservative  fashion,  and  some  of 
the  firms  which:  .make  a  practice  of  dividing  profits  up 
to  the  hilt  may  have  to  look  to  their  laurels  presently. 
Following  last  year's  precedent,  income-tax  is  paid  on 
the  preference  shares,  absorbing  ;^io,500,  and  the 
directors  are  content  to  leave  the  ordinary  dividend  at 
7  per  cent.,  which  takes  ;^35,ooo— less  than  one-sixth 
of  the  nett  balance.  The  amount  written  off  cost  of 
main  site  is  doubled  at  ;^2o,ooo,  while  ;^io,ooo  is 
agam  written  off  both  buildings  and  fixtures,  &c., 
while  ;^io,ooo  against  ;£'6,ooo  is  appropriated  to  re- 
duce the  investment  in  T.  Lkjyd  and  Co.,  Ltd.  Excess 
profits  duty  requires  a  reserve  of  ;^75,ooo,  against 
*35.ooo,  and  the  balance  forward  is  increased  by 
;^28,ooo  to  ^155,500.  The  balance-sheet  looks  clean 
and  healthy,  but  the  changes  do  not  call  for  remark, 
except  for  an  increase  of  ^40,000  to  ^114,500  in  the 
cash  held.  We  are  informed  that  the  sale  of  National 
War  Bonds  organised  in  December  resulted  in  a  total 
subscription  of  over  ;^3,37o,ooo,  and  the  ej^penses, 
amounting  to  £11,000  with  prizes,  have  been  charged 
against  profits.  There  is  evidently  room,  even  yet,  for 
go-ahead  enterprise  in  this  old,  effete  village  of  ours. 

Despite  the  fact  that  the  coal  trade  has  been  under 
the  control  of  the    Government    throughout    the  past 


year,  the  South  Wales  collieries  enjoyed  a  good 
measure  of  prosperity.  The  Consolidated  Cambrian, 
which  derives  the  bulk  of  its  income  from  its  holdings 
in  the  Cambrian  Collieries,  the  Glamorgan  Coal,  Naval 
Colliery,  the  Britannic,  Merthyr,  and  D.  Davis  and 
Sons,  has  issued  its  report  this  week,  showing  a  nett 
profit  of  ;^i23,ooo,  against  ;^i46,ooo  in  1916,  and 
;^''i47,6oo  in  the  first  year  of  the  Combine's  existence — 
namely,  1913.  The  dividend  is  consequently  reduced 
from  15  to  10  per  cent.,  which,  however,  was  the  pre- 
war rate.  No  special  allocations  are  made  this  year, 
but  the  carry  forward  is  raised  from  ;^"2,500  to 
;^i8,30o.  The  accounts-of  D.  Davis  and  Sons,  which 
have  also  been  published,  show  that  the  gross  profit 
declined  from  ;^246,400  to  ;^i88,7oo,  while  the  nett  is 
;^48,5oo  less  at  ';i^i48,8oo.  A  sum  of  ;^'39,9oo  has 
been  allowed  for  depreciation,  whereas  last  year 
;^49,ioo  was  deducted  for  the  same  purpose  and  ex- 
cess profits  duty,  while  ;^i  2,600  was  placed  to  reserve. 
The  dividend  is  maintained  at  20  per  cent.,  but  the 
carry  forward  is  reduced  by  ;^i4,8oo  to  ;^67,ioo.  The 
falling-off  in  profits  from  the  high  level  reached  in 
1915  and  1916  was  the  inevitable  outcome  of  Govern- 
ment control,  which  has  restricted  profits  in  the  in- 
terest elf  the  consumer.  Besides  having  that  salutary 
effect,  the  restriction  of  profits  has  put  an  end  to  those 
serious  labour  troubles  of  1915  and  1916,  which 
threatened  to  bring  the  industry  to  a  standstill  and 
cause  disaster  to  the  national  interests. 


The  directors  of  Thomas  Wallis  and  Co.  report  that 
the  sales  during  the  year  ended  January  31  were  con- 
siderably larger  than  in  any  period  since  the  formation 
of  the  company,  and  the  improvement  was  continuous 
throughout  the  year.  Consequently  the  profits  showed 
an  increase  of  no  less  than  ;£"i8,049  at  ;^54,690,  and 
;^9,024  against  ;^3,868  was  brought  in.  Of  the  in- 
crease of  £'23,200  in  the  available  balance,  ;£'i5,500  is 
set  aside  as  provision  for  excess  profits  duty.  A  final 
distribution  at  the  rate  of  14  per  cent,  makes  the  dis- 
tribution for  the  year  10  per  cent.,  less  tax,  as  com- 
pared with  8  per  cent,  for  the  previous  year,  and,  after 
adding  £'1,000  against  ;^SOo  to  the  benevolent  fund, 
the  balance  forward  is  raised  from  ;^9,o24  to  £'12,265. 
Reserves  remain  at  ;^i  54,400,  and  the  company  has 
reduced  its  bank  loan  by  ^'3,000  to  ;^52,ooo.  Not 
since  January  7,  1908,  has  the  company  been  in  a 
position  to  pay  a  dividend  of  10  per  cent.,  but  in  those 
days  dividends  were  paid  free  of  tax. 

It  is  understood  that  negotiations  are  in  progress 
between  the  Anglo-Persian  and  Burmah  oil  interests  for 
securing  control  of  the  British  Borneo  Petroleum  Syndi- 
cate's extensive  oil  concessions  in  Borneo.  The  Royal 
Dutch  Co.  and  the  Shell  Co.  formerly  had  an  option 
over  the  properties,  but  this  was  subsequently  can- 
celled. The  present  scheme  has  for  its  object  the 
systematic  exploration  of  the  Borneo  Syndicate's  pro- 
perties. 

Last  year's  trading  profits  of  the  Bradford 
Dyers'  Association,  Ltd.,  were  £^760,000,  or  £^24,000 
less  than  in  the  previous  year,  but  as  they  are  arrived 
at  after  providing  for  excess  duty,  the  actual  figure 
is  doubtless  considerably  larger.  Anyhow,  as  there 
was  a  gain  of  ;^230,ooo  in  1916  over  1915,  the  present 
results  must  be  regarded  as  eminently  satisfactory. 
With  ;^ioo,ooo  more  brought  in  and  a  larger  income 
from  investments,  the  total  available  shows  an  in- 
crease of  £111,000  at  ;^i, 030,000.  After  again  plac- 
ing £90,000  to  depreciation  fund  the  dividend  of  10 
per  cent,  is  repeated,  but  the  bonus  is  increased  from 
5  per  cent,  to  7 J  per  cent.,  and  ;^200,0C)0,  or  ;^50,ooo 
mcwe,  is  put  to  reserve,  raising  it  to  a  round  million. 
Moreover,  £^100,000,  against  ;^6o,ooo,  is  set  aside  for 
the  benefit  of  employees  serving  with  the  Forces,  and 
the  balance  forward  is  only  reduced  by  ;^5,ooo  to 
^215,000.  Changfcs  in  the  balance-sheet  are  not  im- 
portant, except  that  investments  and  loans  have  in- 
creased  ;^630,ooo  to  £'1,200,000.     Cash   amounts   to 


Feuruary  22,  1918. 


TLbc  Jnvcstore'  "Kcview, 


igr 


the  large  total  of  £457,000,  an  increase  ol  ;^' 18,000, 
and  the  company  is  now  in  an  exceptionally  strong 
position.  It  is  very  wisely  taking  the  opportunity  of 
the  present  prosperity  to  remodel  the  regulations  and 
details  of  the  employees'  benefit  scheme.  The  princi- 
pal alteration  is  that  a  Ixinus  of  £,2  los.  will  be  paid  in 
respect  of  each  hundred  bonus  shares  held  by  the  em- 
ployee when  the  ordinary  dividend  is  not  less  than  5 
percent.,  with  an  additional  10s.  for  every  i  per  cent, 
above  5  paid  on  the  ordinary.  In  respect  of  the  past 
year,  therefore,  the  bonus  would  be  ;^"8  15s.,  and  the 
terms  of  the  scheme  appear  to  be  generous. 

The  accounts  of  the  Exploration  Co.  for  191 7  show 
a  marked  increase  in  realised  profits,  the  total  being 
;£r2i,024,  an  increase  of  £17,773.  The  dividend,  how- 
ever, which  is  paid  free  of  tax,  is  reduced  from  is.  to 
6d.  per  share,  and  the  carry  forward  is  raised  from 
;^6o,209  to  ;^62,484.  The  explanation  of  the  smaller 
distribution  is  that  in  1917  the  amount  brought  inio 
the  accounts  was  very  much  smaller  than  in  1916,  the 
decrease  being  about  one-third.     Apparently  the  posi- 

Ition  in  Mexico,  in  which  the  company  has  large  in- 
terests, is  improving.  The  El  Oro  Mine  has  remained 
in  operation  throughout  the  year,  and  the  compan}  has 
recently  been  able  to  resume  the  payment  of  dividends. 
The  Santa  Rosa  and  Buena  Tierra  mines,  situated  in 
the  north,  have  not  been  operated  during  the  vear. 
This  part  of  Mexico  is  the  most  unsettled,  but  things 
there  are  expected  to  improve  now  that  an  agreement 
has  been  reached  between  the  United  States  and 
Mexico  restoring  relations  between  the  two  countries. 


I 


The  Amalgamation  of  the  London  City 
and  Midland  and  the  London  Joint 
Stock  Banks. 

This,  the  crowning,  although  by  no  means  the  last, 
effort  in  bank  consolidations  was  quietly  announced  in 
the  beginning  of  this  week,  and,  notwithstanding  Mr. 
Konar  Law's  Committee,  we  can  have  no  doubt  that  it 
will  be  carried  into  effect  without  hindrance.  Certainly 
the  shareholders  of  the  Joint  Stock  Bank  ought  to  be 
eager  to  accept  the  generous-looking  terms  offered  by 
the  City  and  Midland.  JJot  only  do  these  terms  enable 
them  to  see  their  property  considerably  enhanced  in  value 
on  the  share  market^  but  their  uncalled  liability  will  be 
hahcd  and  considerably  more.  The  London  City  and 
Midland  Bank  shares  are  ;^i3  nominal,  with  £2  los. 
paid  up.  The  London  Joint  Stock  shares  are  ;^ioo 
nominal,  with  £.i~,  paid  up,  and  the  London  Joint 
Stock  shareholders  are  to  receive  four  shares  of  the 
London  City  and  Midland  for  one  of  their  own.  These 
four  shares  carry  an  aggregate  liability  of  ;^38  only, 
whereas  each  one  Joint  Stock  Bank  share  to  be  sur- 
rendered carries  a  liability  of  /J'85.  At  one  stroke, 
therefore,  the  London  Joint  Stock  Bank  shareholders 
are  quit  of  an  uncalled  liability  of  ;^47,  which  is  a  re- 
duction of  nearly  -18.5  per  cent,  in  their  present  risk. 
That  ought  to  be  enough  to  satisfy  them  and  doubtless 
is.  Whether  it  will  also  fully  satisfy  the  creditors  of 
the  bank  probably  depends  most  on  the  way  the  huge 
business  formed  by  the  fusion  continues  to  be  cor.- 
ducted,  and,  more  still,  perhaps,  on  the  manner  in 
which  the  liabilities  of  the  Treasury  are  dealt  with  and 
provided  for. 

We  called  the  "London  City  and  Midland  "  the 
biggest  bank  in  the  world  "  when  dealing  with  .its 
report  at  the  beginning  of  the  present  year,  and  the 
description  was  not  an  exaggeration.  Other  banks 
may  have  greater  liabilities  in  the  form  of  note  circu- 
lations and  the  other  types  of  Government  make  believe, 
and  smaller  assets,  but  in  the  matter  of  deposit  and 
current  account  balances  due  in  one  form  or  another  to 
its  customers,  the  London  City  and  Midland  has 
topjicd  all  the  banks  known  to  us  in  any  part  of  the 
world.  It  owed  ^220,552,000  to  these  clients  at  the 
end  of  last  year,  as  shown  in  the  table  on  page  iir  of 
the  current  volume  of  The  Investors'  Revikw.  Add 
^^^  £57<979,ooo  owed    by    the    London    Joint    Stock 


Bank  at  the  same  date,  and  uc  have  tJie  amalgamated 
bank  under  obligations  to  its  customers  to  the  forqiid- 
able  total  of  ^278,53 1,000.  As  against  this  there  will 
now  be  a  paid-up  capital  of  ;^8, 159,000,  plus  a  reserve 
"1  ;6"5'7.'8,ooo,  or  together  ^"13,877,000,  to  constitute 
the  basis  on  which  the  towering  mass  of  credit  is 
reared.  The  mere  statement  of  these  facts  emphasises 
our  oft-given  warning  to  pile  up  reserves;  and  the  only 
thing  the  Government,  backed  by  its  Committee,  can 
really  hope  to  do  to  safeguard  the  interests  of  the  com- 
munity, is  to  recommend  a  systematic  accumulation  of 
reserves  far  beyond  their  present  total.  Most  banks 
should  need  no  spur  in  this  direction,  for  they  have 
nearly  all  accumulated  in  the  long  years  of  receding 
prices  hidden  reserves  under  one  formula  or  another, 
the  aggregate  of  which  must  make  them  really  much 
stronger  than  they  seem. 

But  the  time  is  coming  when  all  our  banks  will  re- 
i^uire  every  resource  they  can  lay  hands  on  to  aid  them 
10  sustain  their  credit  and  to  conduct  their  business 
amid  the  turmoil,  the  chaos  even,  with  which  the  affairs 
of  the  country  will  for  a  time  probably  be  threatened. 
It  is  the  prospect  of  this  impending  time  of  adversity 
and  strain  which  doubtless  moves  the  banks  to  draw 
together  in  order  to  form  great  corporations,  whose 
strength  will,  they  hope  and  we  hope,  prove  unassail- 
able. For  on  the  after-w.ir  stability  of  our  banks  all 
our  fortunes  depend.  The  financial  necessities  of  the 
Government,  together  also  with  the  methods  employed 
to  provide  for  these  necessities,  have  helped  to  drive 
the  banks  to  take  the  step  they  have  done,  and  be- 
cause that  is  so,  the  Government  dare  not  hinder  this  or 
any  other  impending  amalgamation.  Other  amalgama- 
tions are  in  contemplation  and  must  take  place,  what- 
ever the  grumbling  may  be,  or  the  doubts  entertained 
hv  the  economic  purist. 


The  Leninites   and    the  Russian  Debt. 


What  is  to  come  of  the  creditors  of  Rus.'iia?  That 
is  a  question  exercising  many  minds.  In  the  present 
( haotic  position  of  the  country,  it  would  be  hopeless  to 
expect  that  the  debt  obligations  of  the  Empire  now 
gone  would  be  squarely  met.  The  Russian  people, 
even  those  not  sympathetic  with  the  l-;xtremists  and 
sworn  enemies  of  all  wealth  not  yet  grabbed  by  them- 
.selves,  like  the  Bolsheviks,  might  plausibly  argue  that 
they  were  never  consulted  in  the  contracting  of  these 
debts,  and  therefore  have  no  moral  obligation  to  pay. 
Had  nothing  been  done  with  the  money  borrowed  ex- 
cept to  waste  it  in  wars  or  in  gratification  of  the  ex- 
travagant tastes  of  the  Imperial  family  and  its  surround- 
ings, that  might  have  been  an  unanswerable  moral  plea, 
and  the  creditors  of  Russia  might  have  been  left 
lamenting  their  loss  without  hope  of  remedy.  Doubt- 
less much  of  the  money  borrowed  abroad  has  been  put 
to  base  and  selfish  uses  by  the  autocracy  and  the  Im- 
perial Court.  By  no  means  all  of  it,  however.  Foreign 
monev  has  provided  Russia  with  nearly  5o,cxjo  miles 
of  railway,  with  ports,  with  machinery  of  all  descrip- 
tions, and  with  the  means  to  advance  the  econom.ic 
development  of  the  country  in  a  variety  of  directions, 
and  as  long  as  these  products  of  foreign  borrowing  are 
in  use,  their  nett  revenues  are  by  right  the  property  of 
Russia's  creditors,  to  the  extent  requisite  to  meet  their 
obligations.  When  order  is  restored  in  Russia,  as  it 
will  be  one  of  these  days,  that  right  will  unquestionably 
be  recognised. 

As  for  the  rest  of  the  debt  which  has  been  wasted  in 
profitless  ways,  in  wars,  in  ministering  to  the  extrava- 
gances of  the  autocracy  and  its  upholders,  even  that 
cannot  be  disowned  by  a  people  desirous  of  standing 
well  with  other  nations,  or  with  itself,  and  the  said 
people  will  possess  in  the  vast  assets  in  land  and  mine- 
rals owned  by  or  assigned  to  the  Romanoffs,  and.  in 
the  overgrown  esfatcs  of  manv  Russian  landowners,  a 
security  which,  when  developed  and  honestly  adminis- 
tered, ought  to  be  sufficient  to  provide  for  the  liquida- 
tion of  all  the  debts  of  Imperial  Russia.  When  the 
[)eople  coine  to  their  own  in  accordance  with  the  dream 
of  the   revolutionary  leaders,  they  will  be  enriched  in- 


•9^ 


Hbe  Jnvestore'  TReview. 


I'EURLAKV  23,    lyitj. 


stead  of  impoverished  by  assigning  these  securities  to 
the  service  ot  the  debt,  for  the  surplus  left  after  meet- 
ing all  charges  should  be  a  growing  one,  and  at  its 
lowest  probably  far  more  than  the  serf  peasants  ever 
received  under  the  old  order.  At  Brest-Litovsk  the 
Prussians  have  taken  care  to  saddle  Ukrainia  with 
responsibility  for  debts  owed  to  Germans  in  their  por- 
tion of  the  foundered  Kmpire,  thus  providing  a  valu- 
able precedent  for  us  when  our  turn  come*, 

Our  idea  in  regard  to  Russia  is  identical  with  that 
unfolded  by  us  quite  early  in  the  war,  when  the  ques- 
tion was  how  Germany  could  be  made  to  pay,  not  an 
indemnity  of  the  nature  of  a  plunderer's  "  scoop,"  but 
an  indemnity  -representing  payment  of  the  losses  and 
costs  of  the  war  to  harried  Belgium,  obliterated  Serbia, 
ruined  Northern  France,  and  of  the  damages  of  all 
kinds  done  to  the  Allies  of  civilisation  everywhere. 
Prussian  militarism  will  not  be  destroyed  beyond  possi- 
bility of  raising  its  head  again,  any  more  than  Russian 
autocracy,  unless  the  great  land  monopolists  are  re- 
duced to  a  degree  of  poverty  that  will  bring  them  near 
the  level  of  dieir  humbler  fellow  citizens.  Militarism 
has  its  root  in  the  selfish  oppression  of  the  irresponsible, 
in  the  tyranny  of  the  owner  of  land  who,  as  one  of  a 
privileged  class,  is  a  law  unto  himself.  It  would  never 
have  been  able  to  raise  its  head,  still  less  to  control  a 
nation's  life,  but  for  the  irresponsible  dominant  posi- 
tion its  territorial  monopoly  gave  It. 

We  must  not  forget  this  side  of  the  subject  when 
discussing  terms  of  peace  with  the  enemy,  and  what- 
ever just  debts  can  be  claimed  for  against  the  aggressor 
empires  by  the  peoples  of  other  nations  must  be  safe- 
guarded. We  shall  always,  while  supreme  on  the 
ocean,  be  in  a  position  to  isolate  the  defaulting  recal- 
citrant adversary,  let  us  never  forget.  Should  the 
Allies  of  the  Entente  come  to  an  agreement  about  their 
attitude  in  the  peace  towards  the  Hohenzollern  Kaiser 
and  his  Allies,  as  doubtless  they  will,  that  agreement 
cantiot  fall  to  take  into  consideration  the  means  of  en- 
forcing decisions  come  to  by  the  league  of  nations 
which  must  grow  out  of  the  allied  unity.  We  shall 
none  of  us  have  any  money  with  which  to  maintain 
armies  as  punitive  or  disciplinary  forces,  let  this  also 
be  remembered.  To  keep  ourselves  solvent  and  to  de- 
velop all  that  is  worthy  of  maintenance  in  our  civilisa- 
tion will  take  all  our  means  and  all  our  labour  for 
many  a  year.  That  is  why  militarism  has  got  to  be 
destroyed,  rooted  out  for  good  and  all,  as  it  is  being 
destroyed  and  rooted  out  in  Germany  soon  now  by  our 
resolute  prosecution  of  the  war,  and  if  our  economic 
arrangements  are  wisely  made  we  shall  always  have  in 
our  hands  the  means  of  bringing  to  reason,  not  only 
the  brutal  Prussian  and  his  sheepish  German  victim, 
but  any  country,  no  matter  what,  which  squares  up 
and  talks  of  fighting,  or  which  refuses  to  honour  its 
just  debts.  Stop  trade  with  such  recalcitrants,  peremp- 
torily and  completely,  until  they  submit.  There  can  be 
no  resumption  of  commercial  or  other  relations  with 
Germany  except  upon  this  footing,  and  the  liability  of 
the  Prussian  military  autocracy  for  the  damages  done 
must  be  never  for  a  moment  lost  sight  of  when  the 
representatives  of  the  free  people  now  united  in  war  for 
its  destruction  come  together  to  settle  terms  upon  which 
the  enemy  shall  be  allowed  to  have  peace.  Should 
Prussian  machinations  aim  at  inducing  default  upon 
the  debts  of  Imperial  Russia  with  the  object  of  injuring 
the  Allies  in  the  manner  now  illustrated  by  the 
Ukrainian  peace  treaty,  then  Prussia's  Germany  must 
be  saddled  with  responsibility  for  the  default  until  the 
wrong  is  redressed. 

The  above  was  written  before  particulars  were  re- 
ceived setting  forth  the  method  by  which  the  Bol- 
shevik Government  of  Petrograd  seeks  to  accomplish 
the  national  dishonour.  These  particulars  are  only 
"semi-official,"  but  characteristic  enough.  The"  first 
step  is  to  cancel  all  loan  contracts  made  by  former 
Russian  Governments,  as  set  forth  in  a  special  list. 
They  cease  to  be  obligations  of  the  State  as  from 
December  i  last,  so  that  December  coupons  are  all  de- 
faulted on.  All  guarantees  given  to  secure  these 
loans    are    cancelled,     and     all    loans    made     abroad 


are  cancelled  without  exception  and  unconditionally,  but 
the  short-term  series  of  State  Treasury  bonds  retain 
their  validity.  The  interest  on  them  will  not  be  pay- 
able, but  they  will  circulate  on  a  par  with  paper  mone\ , 
which  is  illuminative  as  to  the  straits  of  the  so-called 
(jovernment.  Then,  to  show  how  anxious  Lenin  and 
Trotsky  are  to  protect  the  poor,  individuals  who  hold 
stock  not  exceeding  10,000  roubles  in  internal  loans 
can  exchange  them  for  certificates  in  their  own  name 
of  a  new  loan  of  the  "  Russian  Socialist  Federal  Re- 
public of  Soviets,"  par  for  par.  Deposits  in  the  savings 
banks  also  are  not  to  be  touched,  nor  yet  the  interest 
on  them,  and  all  the  holdings  in  the  cancelled  loans 
belonging  to  these  banks  will  be  replaced  by  debt 
entered  to  their  credit  in  the  Great  Book  of  the  Russian 
Socialist  Republic.  Co-operative  and  other  institutions 
of  democratic  utility  and  possessing  a  holding  in  thecan- 
celled  loans  will  be  indemnified  in  accordance  with  the 
special  regulations  laid  down  by  the  Supreme  Council 
of  Political  Economy  in  agreement  with  their  repre- 
sentatives, if  it  be  proved  that  the  holdings  were 
acquired  before  the  publication  of  this  decree.  Fur- 
ther, the  State  Bank  is  charged  with  the  complete 
liquidation  of  loans  and  the  immediate  registration  of 
all  holders  of  bonds  in  the  State  loans  and  other  funds, 
whether  annulled  or  not,  and  the  Soviet  of  the  Work- 
men's, Soldiers'  and  Peasants'  Deputies,  in  accord  with 
the  local  economic  councils,  will  form  committees  for 
the  purpose  oT  deciding  whether  a  citizen  is  to  be 
classed  as  "indigent."  These  committees  will  J)e 
competent  to  cancel  entirely  all  savings  acquired  with- 
out working  even  in  the  case  of  sums  below  5,000 
roubles.  Thus  does  the  levelling  down  proceed  and 
strive  to  accomplish  Russia's  obliteration  as  a  civilised 
countrv. 


Our  Foreign  Trade  in  January. 

The  reactionary  tendency  in  our  foreign  commerce, 
which  became  very  pronounced  towards  the  end  of  last 
year,  did  not  appreciably  improve  in  January,  as  will  bo 
seen  from  the  following  summary  : — 


— 

January, 
1918. 

Compared  with 
1917. 

Compared  witli 
1916. 

Imports 

99.058,714 

41.665,935 

3,190.660 

£ 
+    8,465,747 

—  5.194.607 

—  5.240,655 

£ 
+  24,122,973 

4-     4,908,768 
—    5.639.512 

Kxports  ,,.., 

Re-exports 

Excess  of  imports 

54,202,119 

+  18.901,009 

4-  24,853.717 

A  considerable  portion  of  the  increase  in  imports  is  due 
to  the  inclusion  of  certain  articles  received  on  public 
account,  which  did  not  figure  in  the  returns  cyi  the 
corresponding  months,  and  these  are  probably  mainly 
responsible  for  an  advance  of  about  7J  millions  in  mis- 
cellaneous manufactured  articles.  In  the  meantime, 
too,  there  has  been  a  big  rise  in  prices,  so  that  the  in- 
creases do  not  by  any  means  reflect  a  corresponding 
gain  in  quantities.  Bearing  this  in  mind,  it  is  certainly 
disquieting  to  find  a  decline  of  ;^6, 170,000,  or  about  16 
per  cent.,  in  Imports  of  foodstuffs,  about  which  no 
details  as  to  quantities  are  supplied.  Grain  and  flour 
fell  15  per  cent.,  meat  25  per  cent.,  and  other  non- 
dutiable  articles  33  per  cent.,  but  there  was  an  increase 
of  13  per  cent,  in  dutiable  articles  (principally  tea  and 
sugar)  and  of  gi  per  cent,  in  tobacco.  Raw  materials 
advanced  ;^4, 375,000,  or  nearly  12  per  cent.,  iron  and 
steel  fell  32  per  cent,  in  amount,  but  the  value  was  14J 
per  cent,  higher,  and  wood  dropped  12  per  cent,  in 
quantity,  but  cost  28  per  cent.  more.  In  the  case  of 
raw  cotton,  the  amount  received  was  36  per  cent,  less, 
but  it  cost  14^  per  cent,  more,  while  wool  fell  53  per 
cent,  in  quantity  and  cost  46^  jjer  cent.  less.  Oil 
seeds,  nuts,  &c.,  increased  ;£^2,32o,ooo,  or  38  per  cent., 
and  the  quantity  of  f>etroleum  was  160  per  cent,  larger, 
but  the  cost  advanced  only  86  per  cent.  Hemp  showed 
a  gain  of  9  per  cent,  in  amount,  but  the  cost  rose  no  less 
than  153  per  cent.  On  the  other  hand,  jute  fell  40J  per 
cent,  in  quantity,  and  the  cost  was  39  per  cent,  smaller. 
Manufactured  articles  show  an  increase  of  ;^9,o66,ooo. 
or  60  per  cent.,  but  most  of  this  is  due,  as  alreadv 
mentioned,  to  miscellaneous  goods  not  previously   in- 


Februarv  22,  191S. 


^be  Jnvesiors'  TReview. 


'93 


eluded.  Metals  other  than  iron  and  steel  rose 
_;^2,8o3,ooo,  or  not  far  short  of  100  per  cent.,  and 
chemicals,  drugs,  &c.,  ad\  anced  ;£,' 1,086 ,000,  or  nearly 
■■(X)  per  cent.,  but  leather  fell  50  per  cent,  in  amount 
and  58  per  cent,  in  value,  while  hides  increased  23  per 
<:ent.  in  amount  and  31  percent,  in  value.  Most  of  the 
other  items  show  decreases,  but  as  a  rule  they  are  not 
of  much  importance. 

Turning  to  exports,  foodstuffs  fell  ^"637,000,  or  33 
per  cent.,  but  that  need  not  greatly  concern  us  under 
existing  conditions.  Raw  materials  were  ;^'584,ooo 
lower,  mainly  accounted  for  by  a  decline  of  ;£,'457,ooo, 
or  10  per  cent.,  in  coal,  while  the  amount  fell  600,000 
tons,  or  17  per  cent.  Manufactured  articles  dropped 
^"■3,005,000,  or  8  per  cent.,  every  item  except  cotton 
showing  a  decrease.  Cotton  yarns  fell  36^^  per  cent. 
in  quantity,  but  fetched  3  per  cent,  more,  and  although 
the  amount  of  piece  goods  shows  a  shrinkage  of  20  per 
cent.,  the  value  was  19  per  cent,  higher.  Iron  and 
steel  fell  33  per  cent,  in  amount  and  30  per  cent,  in 
value,  and  machinery  shows  a  decrease  of  ;£'725,ooo, 
or  36  per  cent.  Chemicals,  drugs,  &c. ,  declined 
^572,000,  or  25  per  cent.,  and  leather  manufactures 
^264,000,  or  63  per  cent.  Woollen  tissues  fell  26 
per  cent,  in  quantity,  but  realised  2  per  cent,  more, 
while  the  value  of  apparel  was  7  per  cent.  less.  At 
nearlv  all  points  the  record  is  rather  depressing. 

.\s  regards  stocks  in  bond,  we  have  abundance  of 
.cocoa  and  coffee  and  the  tea  position  has  improved,  as 
there  were  63,473,000  lbs.  in  hand  at  the  end  of  last 
month,  as  compared  with  37,200,000  at  the  end  of 
December.  There  is  consequently  no  excuse  for  the 
tea  queues  which  are  still  to  be  seen  except  the  clumsy 
bungling  of  the  control.  Figures  for  sugar  are  again 
omitted — we  wonder  why?  Tobacco  begins  to  give  rise 
to  some  anxiety,  the  total  stocks  being  reduced  to 
130,987,000  lbs.,  as  compared  with  261,027,000  lbs.  a 
year  ago.  The  amount  is  sufficient  for  present  require- 
ments, but  we  hope  the  same  mistake  will  not  be  re- 
peated as  was  made  in  the  case  of    tea    by    allowing 


stocks  to  be  reduced  to  a  famine  level.  However,  we 
may  trust  the  powerful  manufacturers  to  impress  on 
the  Shipping  Controller  the  necessity  for  granting  im- 
port facilities. 

Appended  to  the  monthly  returns  are  tables  showing 
the  aggregate  imports  from  and  exports  to  the  prin- 
cipal countries  for  the  last  quarter  of  the  complete 
year,  and  in  the  accompanying  statement  wc  give  the 
more  important  figures  for  the  twelve  months.  Why 
the  bullion  returns  could  not  be  given  at  the  same 
time  is  one  of  those  minor  annoyances  that  only  bureau- 
cracy is  capable  of,  but  at  present  they  are  not  of 
great  importance,  and  we  need  not  worry  about  them, 
except  to  point  out  that  officialdom  appears  to  ?gloat 
over  every  opportunity  of  suppressing  every  kind  of 
information,  whether  valuable  or  not,  merely  for  the 
sake  of  keeping  from  the  public  knowledge  which  is 
in  its  possession.  It  is  a  stupid,  ostrich-kind  of 
futility,  well  illustrated  by  the  omission  of  sugar  stocks 
from  the  bonded  returns  ;  but  it  is  no  use  quarrelling 
about  little  things  of  that  kind  just  now,  because  this 
arrogance  of  power  will  have  to  be  paid  for  dearly  in 
the  future.  That  merely  by  the  way.  There  is  nothing 
in  the  figures  for  the  last  quarter  that  calls  for  notice, 
and  we  take  the  complete  year's  returns  as  of  more 
interest.  In  1915  we  got  21J  millions  of  goods  from 
Russia,  and  the  heavy  decline  since  is  significant,  more 
especiallv  when  cons.idered  in  connection  with  the 
enormous  increase  in  exports.  The  latter  were  only 
13!  millions  in  1915,  so  that  last  year  they  were  multi- 
plied about  three  and  a-half  times,  and  we  are  afraid 
much  of  them  have  been  put  to  a  very  bad  use.  We 
have  received  substantially  more  from  Norway,  but  con- 
siderably less  from  Sweden,  Denmark  and  Holland,  so 
that  a  certain  type  of  mind  will  doubtless  find  great 
satisfaction  in  the  fact  that  the  exports  to  these 
countries  have  fallen  off  heavily.  On  the  other  hand, 
they  will  find  some  scope  for  the  exercise  of  their 
morbid  imaginations  in  the  decline  of  imports  from 
Switzerland      accompanied      by     a     big      increase     in 


MARINE    &    GENERAL 

Mutual    LIFE   Office. 

ESTABLISHED  1852. 


Funds    exceed    Two    Millions. 


During  the  whole  of  the  Society's  existence, 
extending    over    a    period    of   63    years,    the 

BONUS     ADDITIONS 

to  the  Sums  Assured  under  the  Life  PoHcies 

have  averaged  £2  per  cent,  per  annum  and  upwards. 


For  Particulars  and  Prospectus  apply  to  Head  Office  : 

14   LEADEN  HALL   ST.,    LONDON,   E.G., 

On  to  any  of  the  Branches  throughout  the  country. 


Ebe  Jnvestots'  IReview. 


Febrlarv  23,  1918. 


exports,  which  were  three  millions  above  those  of 
1915.  France  has  not  been  able  to  .send  us  much, 
and  our  imports  last  year  were  8^  millions  below  those 
of  I9i5,but  fortunately  we  were  in  the  position  to  help 
her  very  materially  with  the  goods  we  could  supply, 
and  last  year  we  sent  her  11  ii^  millions  against  less 
than  70  millions  in  1915.  Italy  also  has  little  to  com- 
|)!aiii  of,  as  we  Avere  able  to  send  twice  as  much  as  we 
did  two  years  ago.  Hut  we  have  had  to  rely  for  our 
supplies  mainly  on  the  United  States,  and  we  imported 
thence  130  millions  more  than  in  1915,  but  could  only 
send  back  in  return  33^  millions  against  26  millions. 
It  is  a  very  lopsided  business  at  present,  but  we  shall 
l)e  able  to  put  things  on  a  sounder  basis  presently. 
Cuba  has  done  well,  but  the  South  American  trade  has 
-been  disappointing,  especially  as  far  as  the  Argentine 
is  concerned,  and  we  cannot  help  thinking  that  the 
Shipping  Controller  has  failed  lamentably  with  regard 
to  this  most  important  source  of  e.ssential  supplies.  It 
is  any  odds  on  that  if  traders  had  been  left  to  them- 
selves there  would  not  have  been  a  drop  from  64  mil- 
lions in  1915  to  484  millions  last  year  in  our  purchases 
from  the  Republic,  and  we  might  also  have  had  a  verv 
much  larger  return  trade.  As  regards  British  Posses- 
sions, Hgypt  and  Australia  have  done  well  in  supplies 
to  this  country,  and  India  has  been  a  very  good  custo- 
mer. Canada  has  more  than  doubled  her  exports,  and 
it  is  perhaps  a  healthy  sign  that  she  only  bought  l6| 
millions  last  year  But  there  arc  no  reliable  deductions 
til  be  made  at  any  point,  as  the  whole  business  of  the 
country,  inwards  and  outwards,  is  almost  entirclv  on 
n  war  basis. 

(ooo's  omitted.) 


'the  13  London 
year  1913 


undertakings  for  1916  hikI  the  pre-war 


Russia    

Sweden 

Norway 

Denmark 

Netherlands      

Java    

France 

Switzerland 

Portugal    

Spain     

Italy  

China     

Japan     

United  States 

Cubi 

Chile 

Brazil    

U  ruguay    

Argentina 

K^ypt    

West  Africa 

South  Africa    ...... 

British  India    

Straits  Settlements. 

Malay  States    

Ceylon  

Ausiralia  

New  Zealand    

Canada 

West  Indies 


Imports  From. 


Iqi6. 


£ 

IS. 252 
2o,Co6 
16,659 
21,942 
22,139 
i'),3i9 
26,585 
15,510 
5,250 

25.034 
11,243 

8.335 
12,494 

291,835 

13,052 

12,409 

9,037 

3.997 

51.594 

26,606 

11,965 

12,323 

72.366 

16,015 

6,284 

10,730 

36,178 
31,627 

58,529 
5,018 


Foreign  countries  total  .. . .;   948,500 
British  Possessions  total    ..I   302,673 


r9'7. 

£~ 
17.937 
14.815 
18,424 

17.752 
20.032 

13.249 
22,868 
11,312 

3,882 
22,151 
10  397 

8,500 

15.310 

376,472 

17.827 

13,29' 

9.95' 

5.457 
48,514 
32.472 
14849 
12,077 
66,847 
16,059 

6,984 
10,200 
64,4  >,c 
29,256 
84,330 

6.250 


Exports  To. 


1916. 


,065,256 
359.870 


£ 

24.97*: 

6,574 

10,897 

".443 

24.057 

7  109 

92,830 

4,5611 
4,0981 

8,523 
20,453 
10,707 

7,48 
32,688 

2,058 

4.034 
6,718 
1,900 

13.949 
11,225 

7,091 
24,064 
52.788 

5.234 
798 

2,746 
35.947 
12.073 
18,018 

2.13Q 


1917- 
£ 

46,733 
3,089 
8,480 
6,908 

20,822 
6,043 

111,507 

6,560 

3,129 

4,792 

27,664 

10,621 

5.523 

33.2.50 

2,012 

4.634 

7,186 

2,280 

12,881 

14,778 

7.378 

20,000 

59,962 

4,888 

738 

2,097 

22,119 

7.039 

16,210 

2,060 


505,  i8c  525,309 
186,176  172,620 


Electric    Lighting    Companies. 


Our  electric  light  and  power  undertakings  have, 
since  the  outbreak  of  war,  been  called  upon  in  in- 
creasing measure  for  effort  of  the  most  vital  kind.  But 
while  almost  all  branches  of  war-stimulated  activity 
have  been  making  large  and  increasing  profits,  most 
electric  power  companies  have  experienced  a  curtail- 
ment of  profits  and  dividends.  This  is'chiefly  because 
expenses,  particularly  the  cost  of  coal,  which  bulks 
.so  largely  in  operating  costs,  have  risen  to  such 
unheard  of  heights,  and  because,  until  rccentlv,  no 
corresponding  set-off  had  been  generally  obtained  in 
the  form  of  an  adequate  increase  in  supply  charges. 
In  the  following  statement  we  show  outputs  and  in- 
creases and  decreases  in  working  costs  and  revenue  of 


Company. 

Output  in  Units 
(coo's  Omitl«d). 

+  or  — 
Per  Unit  in 

Price 
Obuined. 

+  t-r  — 

Per  Unit  ii, 

Wcrl.ing 

Costs. 

+  or — 
Per  L'nit  in 

1916.     1    I9I3- 

Pro6t. 

30,060 
28,040 

2b!982 

35,030 

4,697 

49,810 

24,595 
6,698 
13,005 
11,272 
23.409 

3,>o8 
28,636 
»7.S32 

4,451 
29,112 
25,743 

5,755 
35,330 
18,109 

6;662 
11,605 
21  9c6 

d. 

4-            .C2 
4-          .14 
4-          .08 
4-          .28 
4-          .!« 
—         .tl 
+           03 

d. 
4-        .55 

4-            .12 
4-            .22 

:    :U 

4-           .18 

d. 

-          5-3 

Cliating  Cross 

z     :U 

City  of  London 

County  London  . . 
Kensington    

—  .21 

—  .16 

—  .25 

—  .20 

Tv!.  I'opoiitan... 

:  i.i.;h  London 

fco..iii   Metropolitan 

St.  James's    

Westminster    

E  S 

•   +        .08 

*           .10 

.03 
+      .09 
—      .08 

—  .21 

«J 

—  -37 

—  .o» 

—  or 

As  w;ill  be  seen,  eight  undertakings  out  of  the  thirteea 
appreciably  increa.sed  their  out]5ut.  In  the  case  of  the 
C/cntral,  County  London,  Metropolitan,  South  Lx>ndon, 
and  South  Metropolitan  undertakings,  this  was  ac- 
companied by  an  improvement  in  gross  profit.  The 
gross  profit  of  the  Westminster  company  was  almost 
up  to  the  pre-war  level,  while  that  of  the  Charing  Cross 
Company  exhibits  a  far  smaller  shrinkage  than  would 
otherwise  have  been  the  case.  The  most  disappointing 
gross  result  was  that  of  the  London  Electric  Company, 
which  supplies  power  to  the  Brighton  Railway  Com- 
pany. Here,  although  the  output  went  ahead  by  40 
per  cent.,  gro.ss  profits  for  1916  came  out  at  ;^55,ooo, 
as  again«t  ;^7i,ooo  for  1913.  This  was  because  the 
fall  of  .2od.  in  gross  profit  per  unit  represented  so  large 
;i  proportion  of  the  relatively  narrow  profit  margin  as 
to  much  more  than  offset  the  revenue  derived  from 
the  larger  number  of  units  sold.  It  is,  however,  after 
deducting  interest  and  special  expenditure,  deprecia- 
tion and  reserves  that  the  disappointing  nature  of  the 
majority  of  the  results  become  evident.  For,  with  the 
oxeption  of  the  South  Metropolitan  Company,  where 
the  nett  profit  ro.se  from  ;^i3,c>oo  to  ;£,'2 1,000,  and  the 
.South  London  Company,  where  the  profit  was  main- 
tained, all  the  concerns  show  decreases  in  nett.  This 
is  clearly  seen  from  the  following  statement : — 


Company. 

Gross  Profit 

{ooo's 

omitted). 

Interest  andjDepr'ciatior 
Spec.Expen-'and  Re^ervt 

(iiture  (ooo'si        (ooo's 

Nett 
Profit 

(ooo's 

Dividends. 

ommed). 

1    omitted). 

omilledV 

igib. 

■9'3 

1910. 

1913. 

1916. 

1913. 

1916 

I913. 

1916. 

1913. 

f. 

f. 

f: 

f 

f. 

f. 

f. 

/■ 

% 

% 

Brompton  .... 

23 

30 

i 

7 

6 

16 

18 

9 

to 

Central    

46 

42 

26 

18 

19 

18 

■  — 

5 

nil 

S- 

Ctiaring  Cross 

139 

153 

46 

46 

39 

47 

53 

£0 

3 

6 

Clielsea  . : .   .. 

33 

37 

8 

9 

«5 

14 

9 

14 

3 

5 

City  of  London 

142 

170 

4' 

35 

40 

50 

61 

81 

8 

la 

County  London 

161 

1,8 

47 

46 

45 

20 

69 

7' 

7 

7 

Kensington    . . 

25 

S6 

6 

8 

7 

12 

If 

15 

6 

9 

London  

55 

71 

22 

19 

16 

15 

'5 

37 

nil 

3, 

Metropolitan.. 

119 

106 

28 

23 

44 

22 

46 

60 

3 

i 

Soiitli  London  . 

29 

28 

7 

8 

7 

6 

14 

14 

5 

S.Metropolitan 

50 

41 

II 

13 

17 

15 

21 

>3 

4 

St.  James's    .. 

65 

70 

29 

20 

13 

16 

22 

34 

8 

It 

Westminister. , 

126 

117 

24 

I,; 

36 

5l8 

^4           71 

7 

10 

During  tihe  past  year  costs  have  continued  to  rule 
at  a  ver\-  high  level,  but  the  various  undertakings 
have,  almost  without  exception,  considerably  increased 
their  charges.  The  average  increase  for  the  country 
is,  we  believe,  .something  like  30  per  cent,  above  the 
pre-war  tariff,  and  as  in  many  districts  the  consumption 
of  current  has  increased,  quite  a  number  of  the  reports 
to  be  pubhshed  during  the  next  few  weeks  can^  we 
think,  be  calculated  to  display  improved  results.  Of 
a  batch  of  seven  local  authorities'  exhibits  we  have 
been  examining,  covering  yearly  periods  up  to  May, 
June,  and  July  last,  with  one  exception,  all  disclose 
increased  profits.  The  Yorkshire  Electric  Power  Com- 
pany, whose  accounts  end  December  last,  reports  an. 
increase  in  nett  profit  of  ;^4, 150  to  ;£.33, 260,  and  re- 
commends a  dividend  of  5,  as  against  3  per  cent.  The 
St.  James's  and  Westminster  Companies  have  recently 
announced  dividends  of  9  per  cent.,  as  against  8  and" 
7  per  cent,  respectively  a  year  ago.  Of  equal  gotxl 
augury  for  the  future  was  the  Kensington  company's 
increased  interim  dividend  in  August  last.  It  is  to 
be  hoped,  however,  that  the  passing  of  the  London 
company's  preference  dividend  in  September  last  does 
not  portend  a  further  reduction  in  the  profits  of  that 
undertaking. 

As  regards  the  future  of  the  indu.stry,  interest  is,  of 
course,  now  centred  upon  tlie  proposal  of  the  Coal 
Conservation    Sub-Committee,     who    recoinmend     the 


Febkuauv  23,  1918. 


tibe  Jnvestors'  *Keview* 


195 


I^PConcentra'lion  of  the  600  odd  dislributing  undertakings 
into  16  diistnicts  with  16  authortics  dealing  with  "  all 
Uhc  gt'iierating  and  main  distribution."  If  this  project 
is  to  assume  concrete  form,  it  is  to  be  hoped  that  the 
'auithorities  will  get  scmcthing  done  with  the  least 
possible  delay.  For  the  present  state  of  uncertainty 
tends  to  produce  a  chaotic  state  of  affairs,  and,  if  per- 
petuated for  any  lengtHi  of  time,  is  likely  to  s-eriously 
I  ^—impair  our  industrial  efficiency.  Even  if  a  super  scheme 
^K)n  some  such  lines  as  that  of  the  Reconstruction  Com- 
^"rnittee  be  put  in  hand  at  once,  it  is  difficult  to  see  how 
it  can  come  in-to  operation  for  a  number  of  years.  And 
the  live  years  following-  the  war  is  likely  to  be  the 
precise  period  in  wihicli  we  shall  be  making  our  indus- 
trial history.  The  need  for  cheap  current  will  be  of 
vital  necessity,  and  many  undertakings  had  in  contem- 
plation the  expenditure  of  larg-e  sums  on  extensions  and 
impro\-ements  of  plant.  But  the  report  of  the  Recon- 
^tructioai  Committee  is  resulting,  in  many  districts,  in 
the  pursuit  of  a  hand-to-mouth  policy,  a  disipensation 
which  tihreaitens  to  spread  itself  o^■er  the  crucial  period. 
The  need  for  the  immediate  co-ordination  of  effort  is 
certainly  one  of  the  moat  pressing  requireinents  of  the 
oment. 


By-the-Way  War  Notes. 


What  are  our  pacificists  going  to  say  about  the  re- 
wal  of  war  in  Russia?  Some  academicals  among 
em  excused  Lenin  and  his  band  for  taking  German 
ney  on  the  ground  that  in  their  eagerness  to  remake 
Russian  society  they  accepted  money  from  anybody — 
from  Germans  as  readily  as  from  Poles  or  Russians — 
without  considering  themselves  bound  in  any  way  to 
serve  the  donor.  liut  could  these  ruffians  and  warped 
idealists  have  served  the  Prussian  military  gang  more 
completely  than  .they  have  done  throughout  the  enact- 
ment of  that  peace  farce  at  Brest-Litovsk?  We  think 
t.  But,  anyway,  Russia  is  about  to  suffer  the  ex- 
emity  of  degradation  at  the  hands  of  the  Austro- 
German  troops,  and  in  her  suffering  may  lie  her  re- 
demption. "  No  annexations,  no  indemnities,"  were 
adopted  as  catch  words  by  the  Hohenzollern  diploma- 
tists, and  perhaps  the  only  "  annexation  "  immedi- 
ately sought  in  the  present  advance  of  Austrian  and 
Germian  troops  into  Russia  is  the  seizure  of  the  stores 
of  grain  believed  to  exist,  and  to  he  within  theirr  reach. 
If  they  do  find  corn,  they  will  take  it,  and  leave  the 
people  to  die  of  hunger.  How  wonderful  is  the  humani- 
tarianism  o'f  tihe  Teuton  ! 

I  On  other  theatres  of  war  all  goes  well  for  the  pur- 
ose  of  the  Allies.  On  the  Western  front  we  are  treated 
very  day  to  fresh  theories  about  the  German  "  plan 
f  campaign."  One  extreme  view  is  that  no  general 
bsault  will  be  made  by  the  besieged  eneni}-,  and  the 
other  is  that  an  immediate  attack  on  a  tremendously 
large  scale  is  just  about  to  be  launched  ;but  whether  it 
will  be  directed  against  us  and  our  Allies  near  the 
coast,  or  soutli-west,  in  the  neighJjourhood  of  Cam- 
brai,  or  elsewhere,  nobody  is  sure.  The  fact  is  we 
know-  nothing  about  it,  and  the  two  apparently  contra- 
dictory assertions,  viz.,  thiit  no  great  attack  is  intended 
and  that  the  onslaught  will  be  immediate,  and  no  effort 
spared  to  make  it  overwhelming  and  decisive,  are  pro- 
bably less  antagonistic  than  they  seem.  Appearances 
point  to  an  attack  upon  an  immense  scale.  But  the  con- 
fession of  a  consciousness  that  it  may  fail,  as  previous 
assaults  have  done,  appears  in  the  immense  prepara- 
lions  made  by  the  Prus.sian  commanders  behind  their 
front.  An  endless  network  of  trenches,  forts,  gun- 
ernplacements,  &c.,  have  been  constructed  in  the  rear 
with  the  usual  German  perseverance  and  ingenuity. 
What  other  purpose  can  these  defences  have  than  to 
minimi.se  the  effects  of  a  disastrous  end  to  the  contem- 
i^jlated  onslaught? 

jm  We  have  but  to  possess  our  souls  in  equanimity  and 

^^Tiold   fast  to  our   purpose,   meanwhile   continuing    the 

systematic,  and  most   skilful    wasting  of  the    enemy's 

resources,  strength,  and  morale  now  in  operation.    The 

development  of  warfare  in   the  air  on   the  part  of   the 


French,  the  Italians,  and  ourselves  is  more  and  more 
becoming  a  determining  element  in  the  struggle,  and 
is  rapidly  denioi-alising  the  enemy.  In  four  days  this 
week  105  German  machines  have  been  sent  to  the 
ground,  every  one  of  them  probably  useless  for  further 
service.  And,  whenever  the  condition  of  the  atmo- 
sphere offers  the  slightest  encouragement,  the  .'\llied 
aviators  are  up  and  at  work,  firing  on  the  enemy's 
trenches  and  shelters,  destroying  their  ammunition 
dumps,  their  stores  of  all  kinds,  attacking  railway 
stations  and  junctions,  wrecking  munition  factories, 
aerodromes,  submarine  depots,  and  whatever  can  be 
found  to  be  destroyed.  .'Vt  present  this  is  the  true 
way  to  win  the  war. 

But  this  looks  a  slow  and  exhausting  method  in  all 
scn.ses,  and  the  grumblers  multiply.  But  how  could  it  . 
be  otherwise?  People,  pacificists  especially,  are  for 
ever  droning  about  "  putting  an  end  to  militarism," 
and  that  is  an  ideal  which  must  be  striven  for  and 
attained  if  civilisation  is  to  be  saved.  For  we  shall 
all,  biarbarians  and  civilised,  be  ruined  unless  militarisin 
— not  merely  of  Prussian,  but  oi  all  types — ^is  put  down 
for  ever.  And  how,  pray,  is  it  possible  to  accomplish  a 
change  so  radical  in  humanity's  ideas  and  habits  unless 
by  fightingj  on  until  the  exihau.sted  foe  is  compelled  to 
surrender  at  di-scretion?  Anything  short  of  that,  any- 
thing that  permits  standing  armies  to  be  again  created 
and  maintained  by  the  soul-wasting  oppressions  of  the 
Habsburg  and  Hohenzoriern  tyrannies,  would  force  all 
ci^'ili&ed  nations  to  follow  the  example  set,  even  as 
they  have  done  for  the  past  50  years.  Therefore  to 
advocate  a  peace  "  by  agreement,"  negotiated  between 
dlplomiats,  whether  Austrian  or  Prussian,  of  the  wily, 
unscrui>iilous  stamp,  is  to  commit  a  crime  against  man- 
kind. 

The  only  durable  peace  that  can  follow  the  conclusion 
to  the  fighting  must  be  modelled  on  the  peace  attained 
by  the  Federals  in  the  Civil  War  of  the  United  States, 
the  peace  of  surrender.     Had  President  Lincoln  failed 


New  Zealand. 


A  Weal(:^y  Country,  Splendid  Climaie,  Fertile 
Soil,  Plenty   of  Water. 

An  Ideal  Country  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  population,  has  an 
annual  export  of  raw  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IRON,  TIMBER, 
GUM,  GOLD  AND  SILVER.  Total  yield  of  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  have  been  advanced 
by  Government  to  Farmers  and  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 
The  Railways,  3,000  miles.  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State. 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  new 
country,  New  Zealand  offers  solid  advantages. 
Excellent  Steamship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Shipping  Company, 
Limited,  and  the  Federal  and  Shire  Lines. 


Full  information  is  supplied  fiee  by 

TDE  HIGH  COMMISSIONER  FOB  NEW  ZEALAND. 

413-416,  STRANP,  W.C.  2. 


■ 


196 


Zbc  Jnvestots'  TRevtew. 


Febrlary  23,  1918. 


to  continue  the  fight  until  the  Confederates  had  to  lay 
down  their  arms  and  surrender  at  discretion,  had  he 
made  any  sort  of  "peace  by  agreement"  with  them, 
the  North  American  Republic  would  not  have  been 
able  to  put  off  its  own  armour  so  completely  as  it  did 
when  the  victory  had  been  won.  So  thoroughly  were 
the  Confederate  armies  destroyed,  and  all  hope  of  re- 
newing the  struggle  with  them,  that  the  great  hosts  of 
the  Federalists  could  be  disbanded  from  general  to  pri- 
vate, the  men  returning  to  their  former  occupations 
without  a  shade  of  apprehension  or  trace  of  the  swagger 
and  assumption  of  the  professional  fighter.  ./Vnd  the 
f>eace  ensuing^  was  the  noblest,  most  durable,  civilised 
man  had  ever  concluded. 

That  is  the  peace  which  we  must  fi^ght  for  to  the  last 
gasp  or  perish  ;  and  from  this  point  of  \'iiew,  cruel  and 
costly  though  it  be,  the  prolongation  of  the  war  on  its 
present  scale  offers  the  best  hope  that  the  Allies  will 
reach  their  goal.  Cease,  therefore,  to  parley  with  the 
enemy,  cop)'  -Abraham  Lincoln,  l>e  silent,  and  sternly 
fight  on. 

Admiral  Jellicoe  cheered  us  up  by  his  speech  at  an 
Aidwich  Club  lunch — by  the  way,  this  club  of  adver- 
tising agents  seems  to  be  becoming  a  favourite  medium 
for  the  confidences  of  politicians  and  members  of  the 
Services  ;  is  there  something  extra  subtle  and  inspiring 
in  its  wines? — in  which  he  told  us  that  the  ratio  of 
destruction  of  German  submarines  has  risen  to  about 
50  per  cent.  That  means  that  half  the  boats  built  and 
sent  out  by  the  German  Admiralty  are  sent  to  the 
bottom.  We  hope  this  is  true,  and  that  it  will  be 
proved  true  by  after  events — not  falsified  like  Lord 
Derby's  effusive  profession  of  loyalty  to  the  death  to 
Sir  William  Robertson.  But  at  present  the  rate  of 
destruction  of  British  merchant  vessels  remains  much 
the  same.  Last  week,  for  instance,  the  return  was  12 
vessels  of  over  1,600  tons  gross  sunk,  ancl  three  smaller 
vessels,  as  well  as  one  fishing  vessel.  Also  the  un- 
successful attacks  numbered  eight.  These  figures, 
however,  require  the  usual  adjustment,  and  deducting 
the  two  large  vessels  sunk  and  the  one  vessel  then  un- 
successfully attacked  in  the  previous  week  but  not  re- 
ported until  the  past  week,  we  get  the  totals  reduced  to 
10  and  7.  The  losses  of  the  week  were  really  six  smaller 
than  any  previous  monthly  average.  Adding  the  vessels 
attacked  without  success  to  those  sunk  we  get  20  as  the 
entire  product  so  far  as  is  yet  known  of  the  efforts  of 
the  submarine  assassins  last  week,  and  that  is  the 
smallest  number  since  the  week  ended  January  19.  On 
the  whole,  therefore,  the  First  Lord  of  the  Admiralty's 
assertion  that  we  are  "  holding  "  the  enemy  in  this 
field  of  war  appears  to  be  true,  and  as  the  davs  get 
longer  our  success  should  become  more  and  more  em- 
phatic. Last  week  2,322  vessels  of  all  nationalities 
entered  and  2,393  'eft  our  ports,  or  4,715  ships  in  all. 
This  was  40  more  than  in  the  previous  week. 
_  General  .-Mlenby  seems  to  be  getting  to  Jericho  all 
right,  but  we  do  not  like  the  news  from  Armenia.  The 
Turks  are  said  to  be  within  10  miles  of  Erzeroum,  and 
unless  enough  true-hearted  Russian  troops  are  avail- 
able for  the  city's  defence,  it  may  soon  be  back  again 
in  the  grip  of  the  Germans,  and  but  little  help,  direct  or 
indirect,  can  be  given  by  either  our  army  in  Palestine 
or  the  one  in  Mesopotamia.  There,  also,  dogged 
resolution  and  perseverance  are  demanded  of  us.  Also 
the  loyal  Russians  must  be  sustained  even  as  the 
Serbs  have  been. 


JANUARY  RUBBER  OUTPUTS. 


Company. 


The  commutee  appointed  to  safe^guard  British  interests  in  the 
Cuban  Forts  Co.  announce  that  the  agreement  with  the  Cuban 
Oovernment  has  now  been  duly  executed,  and  holders  of  the 
5  iper  cent,  first  mortgage  bonds  are  invited  to  deposit  them 
■wjth  Messrs.  Kleinwort,  Sons  and  Co.,  20,  Fenchurch  Street, 
E.G.,  in  order  to  facihtate  the  exchange  for  Government  5  per 
cent,  internal  bonds,  on  which  interest  accrues  as  from  Novem- 
ber I  last. 

The  directors  of  James  Dunlop  and  Co.  announce  that,  owing 
to  the  intricate  accounting  with  the  various  Government  De- 
partments, they  are  unable  meantime  to  presont  the  accounts 
for  1916,  but  they  are  satisfied  that  the  profits  justify  the  repeti- 
tion of  the  dividend  of  10  per  cent.  The  whole  of  the  works 
and  collieries  are  now  under  Government  control. 


Aboyne  Clyde 

AHagar 

AUkince 

Alor     Pongsu 

AtDpat 

Anglo-Java  . . 

Anglo- Johore 

An^jo  -  Malay 

ADglo-Sum... 

Asahan 

As.  T.Ceylon 

Aver  Kunlng  . 

Baean  Serai. . 

Ban  Lias 

Baioa  Kidoel . 

Bakap 

Bambrakelly  . 

Bandar   Sum. 

Bandjarsarie 

Baodarapola 

Bantvdawa. 

Bantam 

flaatenc 

Batak  Kabit. 

Batang  Mai. 

Batu  Gaves  . 
,,  Matang 
,t  Hata  . 
„    Tiga     . 

Be'uf'rtB'rn'o 

Bekoh 

Beranang 

Hernani-Per'k 

Bidor . . 

Bikam 

Bode  .. 

Bradwall 

Bramiston    , . 

Brfl  BornPara 

British  Malay 

Brooklands  . 

Broome 

Bruas-Perak 

Bukit  Cloh  . 
„  Ijok  . 
,,  Kajang. 
,,  Lintang; 
„  Mert'jmj 
„  Panj'ngi 
„  Rajah.  .1 
„    Semba..| 


Current   LastAll- 
Esiimate.  in  Cost. 


444r374« 
338,100a 
208,394a 
276,4t3a 
180,000 

2.525,395« 
300,000 

1,720,000 
940,000 
550,000 
255,000 
821,071a 

413,182a  I 


Jan., 
lbs. 


1/0.50 

I/I.62 

1/0.75 

l/>-35 

1/3.20 
/II.23 

/io3 
1/3.16 


1/0.34 
/11.83 
1/9.46 
250,98«ai  1/8.85 
285,000        — 
235,0.0     1/4.96 
440,000        — 
243,019^  1/2.48 
265,6oon,      — 
340,000  I 
915,000 
434,000 
440,0C0   ; 
3l8,I22rt 

777.995a! 

185,000 

495,03011 


I/I. 65 

I/I.37 

I/I. 64 

1/3 
/9.13 


I/1.50 
1/0.25 

1/5-75 


rarey  United 
itie" 


Casflefieid  . . 
cent.  Tray,. . 
Ceylon  Para 
QeylonT.&R. 
Changkat-Sal. 
cheinb  Malay 

g'heras  .. 
hersonese 
Oheviot . . 
Chinlpul 
Chota  . , 
cicely  .. 
cJuny  .. 
cons.  Malay 
Dalkeith 
Damansara  . . 
Dangan.. 
Dennistown. . 
Deviturai 
Dimbula 
Djasinga 
Djember 
Doranakande 
Duff  Develop. 
Dusun  Durian 
E.lnd.&Cey, 
Edinburgh  . . 
Elphil  ..  .. 
Emerald 
Eow  Seng  . . 
,Escot  ..  .. 
Fed.  Malay  S, 
Fed.  Selangor 
Galaha 
Galang  Besar 
Gan  Kee  . . 
Garing  . .  . . 
Gedong . .  . . 
Gen.  Ceylon  . 
Glen  Bervie. . 
Glendon..  .. 
Glenshiel 
Golconda 
Golden  Hope 
Grand  Cent. . 
Gula  Kal'p'g. 
Harpenden  .. 
llayoep. .  . . 
Heawood 
Hewagam  . . 
Hid.  Streams 
Highlands  . 
Inch-Kenneth ; 
Insulinde 
Java  Amal.  . . 
lava  R  &  Prod 
Java  Para  .. 
JeratD  ..  ,. 
Johore  Para.. I  f9o,362a 
„  Rub.  Lds  1,147,34811 
Jong  Landorl  680,000 
Jugra  Estate  378,613 
JugraLand..  1,398,000 
Jtiru  Estates...  200,000 
Kajang  ..  ..  39i,cooa 
Kali  Glagah. .;  250,000 
Kanip  Kua't'nj  362,50m 
Kainuning  ..  810,000 
Kapar  Para  ..  1,075,138/ 
Karak  . .  . .  241,019a 
Kasintoe      . .     582,675a 


1/2.65 

1/1.83 
1/J.62 
1/5.22 
1/2.58 
/11.80 

"L 
1/2.5 
1/4.42 

1/6.47 

1/0.38    j 

1/1^57  ! 

1/2  .73 
/10.74  \ 

1/0.45 
/11.20 

I/317    I 


1/2.34 


1/3-24 
1/6.9 

/11.44 
1/2.54 

1/4.78 
/U.05 


236,00-a 

540,000 

3J5,ooo 

300,000 

419,500a 

372,032 

264,930a 

442,142a 

5co,ooo 

220,000 

718,388a 

620,000 

450,000 

103,106 

229,«ooa 

304,500a 

940,oco 

280,000 

932,000 

536,900a 
1,071,000 

751,860a 
322,275a 

680,000 

230,275a 

1,055,5840; 

235,031a  I  1/4.31 

I,oi3,ooofli'  1/0.47 

457,102a:  1/1.37 
284,300a,  1/5.39 
689,659a,  /10.58 
591.4400 

250,000 
228,515a 
400,000 
244,892a 

917.5900 

d75,oco 
847,2050 
225,000 
58  ,671a 
345,67001  t/i.gc 
282,8580!  /10.36 
43J,554a|  1/7-39 
266,7000  — 
205,597a  1/4.47 
804,47001  1/7.40 
790,37101  /10.71 
2I0,C00  I  I/I.I5 
447,5500 
252,000 
377,700a 
I72,450rt 

244,5200!  1/2.32    i 
1,845,0000 
370,000 

125,5831;       — 
450,000  I       — 

2OO,C0O    !         — 

197,6830  1/1.99 

277,508a  I/I.75 
l,oS5,oooa!  1/1.27 

275,4060!      — 

243,0000! 

488,940a: 

596,10401 

352,0250 
4.759.405a 
1,333.328a 

511,107a 

512,4050 

275,000 

646,2000 

242,7391;      — 
1,426,51801  1/0.01 

440,000  ;  1/3.71 

330,000 

3l5,oooA 

620,000 

265,691a 

300,000 


/9.14 

1/588 

I/J 


1/9.50 
/n.68 


1/2.18 
/11.36 
1/1-4' 
1/0.72 
/11.2 

/I  I -49 

1/1.5 
1/2.80 


1/0.39 


I/1.20 


I/2.I4 
i/3l 

1/0.60 
/10.02 
1/1.88 
1/1.95 

1/2.07 
1/1-49 
/10.91 

1/8.56 


44.««7 
24,500 
14,926 
26,585 
19.500 
209,068 

19.833 
148,201 

69.527 
41,646 
31.713 
75,000 

32.500 
64,257 
62,000 
20,  coo 
20,225 
44,077 
20,960 
21,000 
50,014 
8o,27<5 
41,600 
25,000 
26,807 
45.745 
19.431 
52,420 
70,500 
18,000 
30,882 
31,687 
22,70 
38,400 
31,700 
13,688 
55,383 
48,735 
i8,oco 
90,500 
69,361 
40,058 
12,636 
36,000 
33,000 
93.0S0 
25,000 
89,560 
53,800 
99.973 
*63,20O 

45.149 
44.725 
18,077 
95.949 
25,636 
100,000 
41,058 
32,000 
60,884 
60,060 
22,469 
16,981 
37i3l2 
20,523 

108,130  I 
45.500 
71,810 
22,554 
52,000 
42,200 
21,000 
60,000 
31,000 
19,200 
65.550 
79,809 
20,265 
38,000 
22,760 
63.500 
15.650 
17.850 

190,000 
38.128 
7,825 
35.920 
13.395 
23,000 
28,129 
93,910 
26,547 
24,710 
46,480 
50,180 
36,772 

471.903 

120,000  j 

32.850 
42.376 
28,896 
63,000 
19,500 

123,696 
46,310 

'24,300 
67,000 
33.600 
47.64a 
32,000 
18,700 

118,932 
59.050 
44.343 

140,104 
16,000 
39.310 
23.350 
32,000 
87,650 

118,560 
20,417 
43.000 


*  ".330 
—    7,800 

7 

■f    4.480 

1 

+    1.370 

+     :.39'> 

+  20,868 

-    3.167 

+        933 

—  I3.0II 

—        121 

4-     7,028 

+     3.359 

-     5.218 

+    46,965 

+   31.594 

—     5,600 

—     3.943 

+     6,252 

—        840 

.  +     3,51:0 

^4-      7.889 

+    10,601 

+      3,250 
-     8,631 

-     1.342 

-  29,481 

+      2.331 

+      2.530 

—      2,000 

—      3.500 

—      4,996 

+       6,927 

—      5,900 

4-           50 

—     3.300 

+      3.312 

+    25,026 

+      6,935 

—     6,540 

9  ' 

4    51.226 

+      9.289 

+     5.007 

+      5.508 

+    12,500 

+      8,500 

+    22,680 

4-      4.000 

•)-    18,827 

4-    10.800 

-     8,748 

—   13.931 

18,521 

7,994 
1.643 

10,186 
1.659 

25.000 
4.183 

11,500 
2,890 

25.440 
1.269 
2,105 
1,762 

59.458 
17,000 
3.343 
7.653 
4.735 
7.650 
2,010 
26,328 
11,300 
1,700 
8,050 
3.630 
6,220 


2,460 

21,000 

275 

3,650 

33.000 

1.463 

3.016 

920 

2,522 

8.300 

6.734 
28,239 
7,240 
6,644 
8,180 
9,883 
9.710 

—  75.417 

—  11,792 

—  20,730 

4- 
+ 
4- 


I 


1-979 
2,617 
18,700 
1,900 
7,269 
3.410 
2,800 
5.000 
4.800 
7.102 

8,051 

3.500 
53.983 

3.050 

8,483 
17.466    ^ 

1,160  I  10 
6,610  j  I 
4.750     10 

2,000   I      I 

2,230       7 
22,193   !     I 

2,32a  I  I 
3.9»5  ]     » 


320,591 

24,500 

14.9*6 

26,585 

75.550 

209,068 

251,429 

148,201 

580,423 

238,475 

•77.390 

75A-0 

32,500 

168,023 

340,000 

126,600 

201,424 

240,750 

20,960 

21,000 

192,514 

544,867 

326,240 

227,248 

26,807 

45.745 

117.674 

329,630 

70,500 

153.000 

281,967 

20. ,217 

156,150 

401,600 

31.700 

13,688 

55,383 

185,106 

159.832 

90,500 

403.501 

239.582 

103,106 

36,000 

33,000 

602,948 

155,120 

728,208 

53,800 

822,760 

165,548 

355.335 
18,077 
95.949 
25,636 

100,000 
41,058 
32,000 
60,884 
60,060 

162,136 
16,981 

345.775 
20,523 

108,130 
45.500 
71,810 

182,000 
52,000 
42,200 
21,000 

334.000 
31,000 
19,200 
65.550 
79.*9 
20,265 
38,000 
22,760 

565,700 

15,650 

70,800 

I,355.ooD 

343.617 
7,825 

230,030 

105,675 
87,226 
78,503 
93,910 

110,474 
92.913 
46,480 
50,180 
36,772 

471,903 

130,000 

32,850 

42,376 

28,896 

63.000 

19,500 

123,696 

33'.5lo 

116,900 

67,000 

33.60a 

47.642 

212,139 

123,100 

1 18,932 

384,568 

348,75  ♦ 

972,070 

150,200 

39.310 

182,507 

32.000 

542,700 

118,560 

20,417 

43.000 


(4-)or(-) 
lbs. 


61.196 

7.80. 
4,480 
If370 
4.380 
20,868 
32,822 

62,548 
9.675 
23.726 
3.359 
5.218 
+  12I,07» 
+    147.765 

—  61.500 

—  glff 
+  37.531 

—  840 
+  3.S00 
+  32.529. 
+  80,524 
4-  30,650- 
4-  15.787 

—  1.342 

—  29,4bt 

+  17.647 
+    24,310 

—  2,OC« 

—  3(,o:o 
4-  15.7«» 
+  24.468 

—  13.950 
+  56.600 
+  S.3CO 
+  3.312 
4-  25.026 
4-  25,^06 

—  42,530 
+  51,226 
+  49.741 
4-  2,893 
+  56,45* 
+  12, coo 

—  8,500 
+     3i.6?« 

—  12,980 
4-  74.529 
4-       10,80a 

54.76* 
18,078 
50,831 
16.50* 

1.643 
10,186 

i.65» 
25,000 

4.18s 
II. 500 

3,890 
25.446 

22,940 

2.105 

42,161 

977 

59.45S 

17.000 

3.343 

48,586 

4.735 

7.650 

2,010 

133.445 

11,300 

1.7O0 

8.050 

3.630 

6,22* 


2,460 

188,000 

275 

4.720 

71,000 

40,OC9 

3.016 

30,780 

1,221 
26, 126 
18,262 
28,239 
27.112 

1.701 

8,i8a 

9.883 

9.710 

75.417 

11.792 

ao.730 

1,979 

2.617 

18,700 

1,900 

7,269 

29.350 

17.540 

5.000 

4.800 

7,102 

13,021 

13,268 

53.983 

15.218 

35.748 

79.310 

15,084 

6,610 

25.407 

2,000 
29.740 
22.193 

a,322 

3.92$. 


Febriary  22,  1918. 


Zbc  Jnvestors'  IRevtew. 


197 


I 


Kawie  Java 

Kepitigalla 

Kepong    . 

Kerala    . . 

KhotaTamp'n 

KilHnghall    .. 

Kimanis 

KintaKellas.. 

KiabariR. .     .. 

Klanang 

Kombok 

Kuala  Klang 
,,  Kubu 
,,  Lumpur 
„  Nal  .. 
„  Pahi  . .. 
,,  Selangor 

Kurau    . .     . . 

^abu      ..     .. 

Lanadron 

Langat    River 

I^angoQ,  Java 

Langkat  Sum. 

L'ngk'n  N.Br. 

Ledbury 

Lendu    . .     . . 

Linggi   ..     .. 

Loohnagar   . . 

LoH.  Asiatic. . 

Ltwnut   . .     . . 

Madiogley    , . 

Maifidle.       .. 

Manawale    . . 

Malacca 

Maiayalam  . . 

Malaysia 

Ma'^y  Pi'nt'rs 

Maoch'r  N .  B 

Mdffibakut  . 

MercuiCrown 

Mernmau     . . 

Monerakelle  . 

Mount  Austin 

Nagolle..     .. 

Narborough. . 

Nebqda  Ce>'. . 

N'wCFoc.Rlv. 

Nordlaixal     . . 

N,  Borneo  St. 

N.  dummock 

N.  Labis     .. 

Oriental 

Padangjawa 

Panawatte    . . 

panagula 

paptiya  . . 

pacambe 

pataling 

Pegoh    . .     . . 

pieVtnaduUa  . . 

perak    . ,     . . 

permas  . .     . . 

pUmoor. .     . . 

pdrt   Dickson 

P.P.K 


preanger 
prye 

Rani  Travan.. 
Ratanui..  .. 
Rangoon  Para 
ftenkbia . .  . . 
Ribu  . .  . . 
Rim  . .  . . 
Riverside 
Rubana  . .  . . 
R.  Es.  Ceylon 
R.  Es.  Johortf 
R.  Es.  Krian.. 
Rubber  Trust 


500,000 
640,000 
334,500a 
250,000 
202,ooon 

344,000 

390,000a 
610,000 
301,412a 
502,010a 
594, oco 
200,000 
i5«i95o< 

1,700,000 
i87,8oort 
200,000 
630,994(1 
283,300a 
762,000 

1, 401,373^1 

773,710a 

520,000 

290,000 

691,496a 

225,000 

2,525,020a 
160,000 

1,560,192a 

198,003 

170,443 

320,000 

4,043,800a 

i,fl54iT79^ 
400,000 
337,366^ 
616,000 
488,000a 
345,000 

1,470,236a 
1 55 1 000 

2,200,000 

573,750(1 

278,100a 

460,000 

625,030a 

624,364 

213,500a 

750, oco 

350,000 

716,450a 

219,024a 

617,209^ 

331.346a 

206,  ioo;t 
253,842a 
729,623a 
7o6,492n 
B13.197'' 
530,000 

353.500a 

700,000 

348,22ya 

329,242a 

310,000 

929,931 'I 
264,000a 

360,86  Drt 

45^,000 

296,873-3 

400,000 

372,000a 

850,000a 

472,004a 

677,211a 

465,500a 

520,413a 


Sagga    . .     . . : 

Sampang  Java 

Sapong  . .     . . 

Sapulm'k'nde 

St.  George  .. 

Scot.  Malay. . 

Seafield..     .. 

Seaport..     .. 

Sedcnak 

Segamat 

Sekong  . ,     . . 

Selaba  . .     . . 

Selangor 

Eiv. 
LUd 

Seletar  . .     . . 

Sembilan 

Sempab..     ,. 

Sendayan 

Sengat   . .     . . 

Sennah  . .     . . 

Serdang  Cent 

Seremban    . . 

SheUord 

Siak        . ,     . , 

Sialang  . .     . . 

Sing.  Para  . . 
„      United. 

Straits  Rub.. . 

S.S.  Bertam . 

Strathmore  . . 

SumatraCons. 
„  Para 
,,       Prop. 

Sungei  Bahru 
„  Batu  . 
,,  Bnaya 
„  Buloh 
„  Choh  . 
,,  Kapar. 
„  Kari,. 
,,  Krian . 
„  Kniit  . 
,,  M't'ng 
„  Purun 
,,  Salak 
„  Siput . 
,.    Way.. 

Sung.Chumor 
Sunnygama.. 


502,500a  I 
136,300a 
338,000a 
505.427^ 
533,471" 
614,000a 
1,040,515a 
435,000 
550,9I3« 
450,000 
162.153 
663,000 
828,og3a 
655.3i3« 

220,000 
210,000 

35i|200 
325,000 

515,000 
1, 700,000 

353.535a 

974.750rt 
278,326a 
268,717a  1 

675,000 
5  >  5,000 
3,890,912a 
1,350,000 
436,000 
680,000 
729,000a 
235,600 
362,000 
286,150a 
501,010a 
615,000a 
552,965" 
844,700a 
360,000 
618,492a 
439,700a 
304,813a 
307,993« 
727,300a 
190,000 
565,372a 
560,000 
984,620R 


1/5-24 

48,690 
1/3.20 
/"■57 
1/0.64 

i/o.go 
1/6,27 
1/6.10 

1/2. 8a 
1/6 
1/0.38 
1/723 

/10.50 
/1I-59 
1/1  52 

1/1.185 

1/8.8 

1/2-75 
/9-52 
/9.91 

1/3-17 

i/4i 

1/1.61 
1/0.80 
i/3_^3 

/loi 

/II.52 

1/1.76 
I /I -77 
1/0.84 
/11.22 
1/0.89 
/9.18 
/11.85 
1/1,36 
1/4.12 

1/3- 50 
1/2.62 
/10.75 
1/2.85 
/io.o6g 

/10.52 

1/0.5 

/11.80 

1/4-24 

1/0.97 

ly 

1/0.  z8 
1/3-34 




46,682 

— 

— 

50,181 

— 

— 

31,000 

+ 

— 

23,682 

+ 

1/330 

25,000 

+ 

23.895 

— 

1/9.22 

38,000 

+ 

50,760 

•I- 

1/4,30 

28,363 

-~ 

I/I.02 

48,558 

+ 

/II.88 

46,500 

+ 

/lo.So 

16,520 

— 

— 

12,891 

— 

1/2-34 

170,280 

-F 

1/2.36 

22,000 

+ 

21,883 

-t- 

/O.3 

57,496 

+ 

/"•75 

28,200 

— 

/11.80 

100,000 

■f 

1/4.05 

112,069 

+ 

36,512 

-f 

1/2.93 

72,000 

+ 

1/4.23 

49,800 

+ 

1/34 

10,000 

/i:.74 

52,604 

— 

— 

iq,000 

— 

1/0.50 

238,700 

+ 

— 

12,234 

+ 

1/2.24 

137.178 

+ 

/11.54 

92,000 

— 

1/2.52 

20,232 

+ 

1/11.62 

11,100 

— , 

— 

29,661 

■t- 

1/2.12 

376,900 

+ 

1/4.67 

128,110 

+ 

1/3,48 

45.261 

— 

1/3,03 

34.000 

— 

50.401 

+ 

1/3 

33,000 

73,000 

+ 



162,700 

+ 

1/6.32 

l4,8oD 

— 

1/4-3 

175.400 

+ 

1/1,43 

40,668 

+ 

1/5.8 

23,000 



49,250 

— 



61,075 

+ 

1/1-79 

53.094 

— 

— 

13.500 

— 

1/1-41 

65,866 

■1- 

1/7-05 

28,056 

■^ 

1/3.30 

58,000 

+ 

20,578 

— 

— 

55,705 

+ 

1/5.807 

28,256 

+ 

— 

l.),O00 

+ 

— 

26,727 

+ 

/10.13 

46,455 

— 

70,365 

■^ 

— 

76,183 

4- 

/ll,38 

51.481 

•f 

1/5-3 

16,699 

— 

1/1,41 

40,952 

-(- 

1/4-85 

78,410 

+ 

/■I, 89 

32,582 

+ 

— 

28.274 

— 

— 

28,300 

+ 

93,200 

20,710 
43,800 

42,234 
31,455 


39,500  i  + 


:>5,6oo 
84,000 

34,009 
51,400 
32,200 

71,085 

48,000 
20,279 
33,000 

44,968 
55,631 

50,000 

90,564 
43,581 
50,478 

37,200 

10,876 
55,248 
75,815 

70,482 
24,560 
14,770 
46,911 

22,133 
63,110 
44,200 

150,859 
34,300 

106,414 

29,039 

*I9,475 
126,661 
50,396 
*44,ooo 
235,000 
120,000 
31,543 
65,300 
88,000 
23,700 
33,225 
33,500 
53,600 
52,000 
52,978 
65,000 
27,400 
56,500 
34,680 
«7,795 
29,649 
70,100 
18,264 
55,836 
50,000 
80,340 


20,918 

2,630 

6,000 

1,682 

6,500 

5,041 

6,000 

4,046 

297 

7,929 

4,270 

750 

S62 

16,830 

5,0-0 

8,683 

1,574 

653 

53,320 
5,884 

12,529 
8,000 

14,640 

12,247 

1,500 

28,469 

351 

3,660 

*    1,500 

390 

—        171 

5,615 

70,500 

24,689 

5,070 

800 

13,047 

19,000 

36,150 

413 

62,400 

11,868 


1,^35 
4,025 
1,966 
8,500 
1,943 
12,440 

131 

1,025 

14,223 

3,508 

1,832 

6,638 

10,285 

8,950 

6,236 

4,046 

3,101 

7,684 

32,300 

12,420 

3,990 

3,370 

14,856 
7,690 
5.8-0 
7,925 
9,140 

16,000 
1,300 

17,582 
3,014 
1,802 
5,800 

38,336 
8,000 
5,199 

-(-  12,228 
+  10,030  I 


+ 

5.907 

+ 

5,'43 

4- 

22,978 

+ 

11,400 

— 

2,624 

— 

2,696 

— 

7,0i8 

-~ 

2,318 

1- 

6,600 

— 

230 

+ 

2,598 

— 

7,181 

+ 

38,790 

+ 

5,700 

+ 

29,306 

— 

4,627 

+ 

43,221 

-1- 

6,497 

— 

5.556 

+ 

5,535 

— 

351 

+ 

5,333 

— 

32,678 

+ 

14,500 

— 

10,183 

+ 

11,500 

•f 

23.320 

+ 

4,740 

■(- 

8.747 

+ 

6,9»3 

+ 

6,740 

— 

5,800 

+ 

8,648 

— 

15,300 

— 

6,900 

— 

9,436 

4- 

470 

— 

1,519 

+ 

9,705 

-f- 

23,100 

+ 

56 

+ 

5,825 

— 

1,000 

14- 

247 

436, 
512, 

33, 
23, 
237, 
166, 
38, 
472, 
28, 
48, 
46, 
64, 
86, 

I,  ICO; 

22 
21,! 
57 
28 


6 

10 


100,000 

212,069 

36,512 

372,000 

49,800 
138,000 

52,604 
177,139 

238,700 
12,234 
137.178 

390,100 

183,154 
89,719 

29,661 
376,900 
128,110 

45,261 
122,268 

450,201 
99,000 
473.504 

162,700 

130,337 
1.833,007 

49,668 
l8i,cco 

49.250 

61,075 

53,094 

13,500 
431,514 
220,294 

58,000 
224,194 
55.705 
28,256 
15,000 
26,727  ■♦• 
46,455 


76,183 
469,531 
I47,7'9 
235,384 
596,580 

32,582 
147,676 
230,720 

93,200 
98,797 
43,800 

152,087 
31,455 

347,600 
35,600 

627,204 
34,009 
51,400 
32,200 
71,085 

279,000 

20,279 

33,000 

44,968 

55,631 

5o,oJO 

90,564 

269,676 

160,043 

37,200 

89,552 

55,248 

75,815 

70,482 

196,910 

110,280 

269,158 

214,783 

159,600 

321,357 

1.021,668 

34.300 

106,414 

29,039 

248,553 

1,386,644 

366,649 

243,5^0 

235,0:0 

31,543 

529,390 

561,630 

194,880 

199,686 

33,500 

339,040 

52,000 

52,978 

65,000 

216,040 

56,500 

34,680 

27.795 

29,649 

70,100 

117,264 

55,836 

310,624 

80,340 


39.071 

18,145 

6,000 

1,682 

34,010 

4,368 

6,000 

52,230 

297 

7,929 

4,270 

6,304 

8,244 

118,800 

5,000 

8,883 

1,574 

653 

S3,32o 

5,884 

12,529 

50,299 

14,640 

12,247 

8,861 

28,469 

.351 

3,660 

24,100 

26,345 

6,01 1 

5,6l5 

70,500 

24,689 

5,070 

1.276 

148,73/ 


36,150 

14,85s 

713,472 

11,868 

34,400 

1,335 

4,025 

1,966 

8,500 

40,906 

97,765 

131 

.39,435 

14,223 

3,508 

1,832 

6,638 

10,285 

6256 
29,875 
11,400 
24,404 
182,110 
12,420 
286 
12,070 

14,856 
7,749 
5,800 

12,545 
9,140 
126,600 
1,300 
100,325 
3,014 
1,802 
5,800 

38,336 

14,000 
5,199 

12,228 
10,030 

5,907 
25,301 

11,400 

4,006 

2,696 

7,028 

2,3lS 

57,650 

190 

14,349 

19,508 

59,610 

59,557 

109,154 

4,627 

43,221 

6,497 

2,0.t4 

154,302 

5,5'7 

34,988 

32,678 

10,183 
70,160 
127,630 
68,760 
33,812 

6,983 
68,430 

3, 800 

8,648 

15,300 

830 

9,436 
470 

1,519 

9,705 
23,100 
17,891 

5,825 

l6,36tl 

247 


Taiping, .  , . 
Tall  Ayor  . . 
Tamiang 
Tangea  Batu 
Tangkah  . . 
Tanj.  Nfalini. 
Tandjong  . . 
Tangoel 
Tebrau  . .  . . 
Teekoy  . .  . . 
Telogoredjo  , 
TenomB'rneo 
Third  Mile  . . 
Tremelbye  . . 
Trolali  ..     .. 

Ulu  Rantau. . 
U.  SuaBetong 
U.  Serdang  . 
U.  Sumatra. 
U.  Temiang. 
Uva  . .  . 
Val  d'Or  . 
Victoria 

Windsor 
Woodend 
Yam  Seng    . 
Yatiyantota  . 


700,000 

1,080,000 

777,213* 

172,569a 

530,000 

1,400,000 

1,595,000 

308,000 

1,046,480 

250,000 

854,020a 

599,800a 

198,835,1 

750,000 

332,04on 


/10.29 
1/0.25 

i/j-39 
1/6.41 

1/3.50 
./3.18 

i/.J 
1/10.70 
1/3.12 

/11.98 

1/0.54 
1/24 


285,066a 

1/1.16 

930,724a 

1/I.I5 

3,395,000 

1/3.96 

991,700a 

1/073 

8o\ooo 

1/5.80 

185,692a 

314,100a 

— 

250,000 

1/4-49 

404,200rt 

1/4.10 

256,772a 

403,3638 

520,823a 

68,611 
87,500 
59,096 
17,829 
46,772 
139.590 

108,492 
3''.7io 
59.835 
18,950 
81,000 
47,800 
34.500 
70,000 
30,000 

27.591 
87,746 
278,919 
93,140 
72,520 
18,047 
27,250 
30,000 

37,900 
22,494 
42,247 
48,681 


■^ 

8,637 

4 

— 

I3,«23 

9 

f 

5,274 

+ 

2  166 

+ 

17,091 

+ 

33,640 

— 

14,145 

<■ 

10,220 

+ 

949 

■^ 

6,619 

+ 

16,400 

— 

8,300 

+ 

20,l8l 

f 

7,000 

— 

1,533 

7,071 
18,275 

22, 800 
12.248 
26,670 
3,834 

4,730 
14,200 

i+  3,218  I 
I -I-  4,726  I 
1+    4,077 

1+    11,261 


235,947 
755,251 

286,043 

17.S29 
186,063 
893,970 
766,423 
184,485 
442,737 
174,566 

81,000 
47,»oo 
34,300 
398,200 
116,320 

27,391 

87,746 

1,319,889 

93,140 

420,690 

18,047 

74,650 

175,400 

37,900 

22,494 
110,684 
48,681 


—  24,9 '2 

—  35,609 
+  64,427 
+  2,166 
+  43,444 
+  231,660 

—  73,720 
+  31,875 

—  166,147 

—  7,497 
+  16,400 

—  8,300 
+  20,l8l 

—  34,800 
+  552 
+  7.071 
+  18,275 

—  131,385 
+  12,248 
+  190,280 
+  3,834 

—  «9,4  o 
+  76,600 

+  3,218 

+  4,726 

+  746 

+  IX,2bl 


a  Last  year's  crop. 


■  For  December,  or  previous  month. 


NOTICES. 


CUBAN  PORTS  CO. 


To  the  holders  of  the  5  per  cent.  First  Mortgage  25-year  Gold  Bonds. 


The  Committee  appointed  to  safeguard  British  investors  in 
the  above  Company  beg  to  re<er  to  the  offer  made  in  October 
last  by  the  Cuban  Government  with  a  view  to  settling  the  bond- 
holders' claims  in  the  dispute  between  the  Cuban  Government 
and  the  Cuban  Ports  Co. 

This  offer  was  to  the  effect  that  Bondholders  should  receive 
in  full  and  final  settlement  of  all  claims  and  in  exchange  for 
the  Bonds  of  the  Cuban  Ports  Co.  the  same  amount  in  Cuban 
Government  5  per  cent.  Internal  Bonds  (interest  commencing 
November  i,  1917),  secured  on  50  per  cent,  of  the  Harbour  Im- 
provement dues.  It  is  estimated  that  the  said  dues  applied  to 
interest  and  amortisation  should  be  sufficient  to  redeem  the 
entire  issue  within   15-16  years. 

At  a  meeting  of  Bondholders  held  in  Havana  on  October 
y,  igi",  at  which  $3,400,000  bonds  were  represented  (exclusive 
of  Bonds  held  in  Cuba),  the  acceptance  of  this  oHer  by  your 
Trustee,  the  Trust  Company  of  Cuba,  in  full  discharge  of  the 
Bondholders'  claims,  was  duly  confirmed  and  legally  executed. 

The  Committee  wish  the  Bondholders  to  understand  that  the 
arrears  of  interest  from  March,  igi6,  was  one  of  the  specific 
claims  put  forward  by  the  Trustee  for  settlement  by  the  Cuban 
Government.  The  Government  decided  that  they  could  not 
make  any  specific  provision  in  cash  for  these  arrears,  but  took 
the  claim  into  consideration  in  the  character  of  the  new  security 
offered  to  the  bondholders. 

The  Committee  consider  the  settlement  thus  made  is  an 
eminently  satisfactory  one,  and  that  the  Bondholders,  not  less 
than  the  Committee,  are  to  be  congratulated  on  the  result  of  the 
four  years'  arduous  work  to  get  the  matter  adjusted. 

In  order  to  facilitate  arrangements  for  completing  the  settle- 
ment, the  Committee  request  the  Bondholders  to  sign  deposit 
forms  and  lodge  their  Bonds  with  Messrs.  Kleinwort,  Sons  and 
Co.,  20,  Fenchurch  Street,  E.C. 

They  will  receive  in  exchange  a  certificate  of  deposit  en- 
titling the  holder  to  receive,  as  soon  as  available.  Bonds  of  the 
new  issue  of  the  Cuban  Government  equivalent  in  face  value  to 
the, Bonds  deposited.  Forms  of  deposit  may  be  had  on  applica- 
tion from  Messrs.  Kleinwort,  Sons  and  Co.  and  Messrs.  Sper- 
ling and  Co.,  Basildon  House,  Moorgate  Street,  E.C. 

The  Bonds  should  have  all  unpaid  coupons  attached. 

Certificates  of  Deposit  to  be  issued  will  not  be  sent  by  post. 

Arrangements  will  be  made  (if  required)  for  Bonds  which  are 
held  in  New  York  to  be  deposited  with  Messrs.  Kleinwort,  Sons 
and  Co.'s  Agents  there. 


CUBAN  PORTS  CO. 


To  the  Stockholders  of  the  Company. 


As  has  been  already  announced,  under  the  settlement  with  the 
Cuban  Government  the  Stockholders  become  entitled  to  the 
remaining  assets  of  the  Company,  consisting  of  various  lands 
on  the  harbour  of  Havana  and  of  the  cash  at  present  in  the 
Treasury  of  the  Company.  It  will,  of  course,  be  understood 
that  these  assets  are  subject  to  the  payment  of  the  expenses  in- 
curred  in  effecting  the  settlement. 

Subject  to  this,  and  as  soon  as  the  Trustee  has  exchanged  the 
Bonds  of  the  Company  for  the  new  Cuban  Government  5  per 
cent.  Internal  Bonds,  the  assets  will  be  at  the  disposal  of  the 
Stockholders,  and  steps  will  be  taken  to  deal  with  them  to  best 
advantage  with  the  least  possible  delay. 

A  map  showing  the  lands  included  in  the  assets  can  be  seen 
at  the  offices  of  Messrs.  Sperling  and  Co.,  7,  Moorgate  Street, 
E.C. 


198 


Zbc  5n?e8tor8'  IReview. 


February  23,  1918. 


UNION  BANK  OF  CANADA. 

HEAD  OFFICE        -        WINNIPEG. 

SSf^d    ANNUAL   STATEMENT. 


PROFIT  AND  LOSS  ACCOU 

Balance  at  credit  of  account,  30th  November, 
1916        «  93,160.42 

Net  profits  for  the  year,  after  deducting 
expenses  of  management,  interest  due 
( epositors,  reserving  for  interest  and  ex- 
change, and  making  provision  for  liad  and 
doubtful  debts  and  for  rebate  on  bills  under 
discount,  have  amounted  to  763,463.92 


per  cent,  paid  1st 
per  cent,  paid  1st 


NT,  30th  November,  1917. 

Which  has  been  applied  as  follows  : — 
Dividend   No.   120,   2   per  cent,   paid  1st 

JIarch,  1917  

Dividend   No.  121, 

.June,  1917... 
■Dividend  No.   122, 

September,  ,1917 
Dividend  No.  123,  2  per  cent,  payable  1st 

December,  1917 

Bonus  of  1  percent.,  payable  1st  December, 

1917  

Transferred  to  Contingent  Account 
Written  ofi  Bank  Pr:!mises  Account,  Real 

Estate  other  than  Bank  Premises,  and 

Alterations 
Contribution  to  Officers'  Pension  Fund  ... 
Contribution  to  French  Eed  Cross  Society 
Contribution  to  French  Wounded  Emer- 
gency Fund  

Contribution  to  British  Red  Cross  Society 
War  Tax  on  Bank  Note  Circulation  to 30th 

November,  1917 

Balance  of  Profits  carried  for^vard 


8")P,624.34 


$100,000.00 

100,000  00 

100,000.00 

100,000.00 

50,000.00 
150,000.00 


75.000.00 

10,000.00 

5,000.00 

5,000.00 
5,000.00 

50,000.00 
106,624.34 

8856,624.34 


LIABILITIES,  30th  November,  1917. 

Capital  Stock $5,000,000.00 

Rest  Account     13,400,000.00 

Balance    of    Profit    and    Loss 

Account  carried  forward      ...      106,624.34 


Unclaimed  Dividends 

Dividend  No.  123,  payable  1st 

December,  1917        

Bonus  of  1  per  cent,  payable  1st 

Decemlier,  1917        


3,506,624.34 
5,492.68 

100,000.00 

50,000.00 


Notes  of  the  Bank  in  circula- 
tion      12,779,662.00 

Deposits  not  bearing  interest     44,368,824.40 

Deposits  bearing  interest    ...     73,508,157.75 

Balances  due  to  other  Banks 

in  Canada 372,938.57 

Balances  due  to  Banks  and 
Banking  Correspondents 
elsewhere  than  in  Canada      1,132,882.08 


3,662,117.02 
8,662,117.02 


ASSETS,  30th   November,   1917. 

Gold  and  Silver  Coin  ...  9      954,667.68 

Dominion  Government  Notes     19,514,069.00 


Acceptances  under  Letters  of  Credit 
Liabilities  not  included  in  the  foregoing 


132,162,444.80 

2,586,609.63 

755.75 


«143,411, 927.20 


Deposit  with  the  Minister  of  Finance  for  the 
purposes  of  the  Circulation  Fund... 

Deposit  in  the  Central  Gold  Reserves 

Notes  of  other  Banks 

Cheques  on  other  Banks         

Balances  due  by  other  Banks  in  Canada     ... 

Balances  due  by  Banks  and  Banking  Corre- 
spondents elsewhere  than  in  Canada 

Dominion  and  Provincial  Government  Secu- 
rities not  exceeding  market  value 

Canadian  Municipal  Securities,  and  British, 
Foreign    and    Colonial   Public   Securities  ■ 
other  than  Canadian  

Railway  and    other  Bonds,  Debentures  and 
Stocks  not  exceeding  market  value 

Call  and  Short  (not  exceeding  30  days)  Loans 
in  Canada,  on  Bonds,  Debentures  and  Stocks 

Call  and  Short  (not  exceeding  30  days)  Loans 
elsewhere  than  in  Canada 


Other  Current  Loans  and  Discounts  in 
Canada  (less  rebate  of  interest)      

Other  Current  Loans  and  Discounts  else- 
where than  in  Canada  (less  rebateof  interest) 

Liabilities  of  customers  under  Letters  of 
Credit,  as  per  contra  

Real  Estate  other  than  Bank  Premises 

Mortgages  on  Real  Estate  sold  by  the  Bank 

Overdue  Debts,  estimated  loss  provided  for... 

Bank  Premises,  at  not  more  than  cost,  less 
amounts  written  off 

Other  Assets  not  included  in  the  foregoing ... 


920,468,736.68 

.  260,000.00 

8.200,000.00 

770,549.00 

3,912,030.75 

82,984.17 

5,193,687.14 

9,361,729.52 

16,244,470.99 

2,933,212.60 

6,634,990.26 

2,938,000.00 

77,000,391.11 

58,791.493.28 

3,154,431.66 

2.586,609.63 

370,603.77 

99.974.93 

250,204.91 

1,106,299.25 
51,918.66 

$143,411,927.20 


The  Bank  has  over  300  Branches  in  CANADA,  and  AGENTS  IN  THE  PRINCIPAL  CITIES 

IN   AMERICA. 

GENERAL      BANKING      BUSINESS      TRANSACTED. 
Letters    of    Credit    and    Travellers'  Cheques   Issued,    available    in   all    parts  of  the    World. 
MONEYS   TBftHSFEBRED   to   and    from    Canada   and   the   United    States    by    CABLE,    LETTERS    OF    CREDIT,    BANK    DBAFTS,    Ac. 
DEPOSITS  RECEIVED  at  favourable  rates,  which  may  be  ascertained  on  application  to : 

6,    PRINCES     STREET,    E.G.  2. 
26,      HAYMARKET,     S.  W.  t. 


LONDON    OFFICES 


NEW  YORK  AGENCY 


49,  WALL  STREET. 


UNION  BANK  OF  CANADA. 


Feuruarv  23,  1918. 


^be  Jnvestors'  TReview. 


199 


I 


SCOTTISH  UNION  &  NATIONAL 

INSURANCE  GOMPANV. 

ESTABLISHED    1824, 

ASSETS    exceed    £11,000,000. 

FIRE  (iNClUDINC  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  CLASS  BREAKAGE,  TRANSIT  OF 
SECURITIES,   FIDELITY,  PROPERTY  OWNERS'    LIABILITIES,  HORSE  DRIVING 

-ACCIDENTS.  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh:  35,  St.  Andrew  Square. 
London:  S,  Walbrook,  E.C.  i,  and  i,  St.  James'  St.,  S.W.  1. 


lEX  CEi  :air  31  :si^ 


ASSURANCE   COMPANY 
LIMITED, 

Established  17S2. 

Head  Office:  PHaNIK  HOUSE,  KING  WILLIA<yi  STREET,  LONDON,  E,C,  4. 
Total  Assets  ISxceed  dBX7,000,000. 
Claims  Paid  Exceed  £98,000,000. 

Chairman— Rt.  Hon.  LORD  GEORGE  HA,MILTON,  P.C,  G.C.S.l 

f^lRE.  LIFE.  ACCIDENT.  MARINE. 

Less  of  Profits  following  Fire,  Workmen's  Ccmpensalion,  Fidelity  Guarantee, 
Burglary,  Trustee  and  Executor,  &c. 
Prospectuses  and  Proposal  Forms  may  be  obtained  on  application  to  any  of 
the  Branch  Offices  or  Agencies,  or  to  the  Head  Offices 

General  Manager        -        SIR  GERALD  H,  RYAN. 


Tlbe  ^fnpcstors'  1Rev>iew. 


Money    and    Credit    Notes. 


Bank  Rate  5  per  Cent.    (Reduced  from  5I  per  cent,  on 
Thursday,  April  5,  1917.) 


Norfolk  House,  Friday  Evening. 

A  week  ago  the  short  loan  market  showed  traces  of 
revenue  absorption.  It  would  have  been  according  to 
the  old  order  of  things  if  these  symptoms  of  scarcity 
had  increased,  all  the  more  .so  because  of  the  unprece- 
dented magnitude  of  the  Treasury  receipts.  Nothing 
of  the  kind  has  happened.  Money  has  been  cheap  all  the 
week,  and  instead  of  paying  3^  per  cent,  for  day  to  day 
advances,  as  many  did  last  week,  they  could  borrow 
yesterday  ail  they  v.anted  at  from  2i  to  3  per  cent. 
So  easy  was  the  market  that  it  did  no  business  in  bills 
of  shorter  currency  than  three  months.  It  was  cheaper 
for  the  owners  to  hold  tlian  to  discount  them.  Dis- 
count accordingly  has  been  weak,  and  quotations  for 
three  months'  bank  paper  were  by  no  means  rigid  at 
the  figures  given  in  our  table.  Seven-day  money 
could  not  always  find  takers  at  3^  per  cent. 

The  Bant  return  aggregates  were  only  conspicuous 
in  two  items.  Other  deposits  have  risen  ;^5, 614,000, 
and  a  corresponding  rise  of  ;^5,774,ooo  has  taken 
place  in  other  securities,  the  advances  creating  the  de- 
posits. Coin  and  bullion  is  down  ;^472,ooo,  and  the 
note  circulation  has  expanded  ;£,'i46,ooo,  so  the  reserve 
is  down  ;^6i8,ooo,  and  its  proportion  to  the  liabilities 
has  recedetl  i  per  cent,  to  18  per  cent 

The  principal  feature  in  the  foreign  exchange  market 
this  week  has  been  the  depreciation  in  the  value  of  the 
lira,  the  quotation  being  45  centimes  higher  at  41.55  Ir. 
to  the  pound  sterling,  the  Scandinavian  exchanges 
have  again  moved  in  favour  of  this  country,  Chris- 
tiania  being  10  points  higher  at  14,99!  '•^"'■.  and  Stock- 
holm 9  points  higher  at  14.39  kr.  6i  course,  practi- 
■|cally  no  dealings  have  taken  place  in  roubles  for  some 
^^■time,  apart  from  purchases  by  neutral  speculators, 
^^■■which  have  sent  the  price  up  to  25  roubles  to  the  pound. 
^^■The  danger  of  these  purchases  "may  be  judged  by  the 
l^pspeed  with  which  the  Bolsheviks  are  using  the  print- 
ing machine,  the  issue  of  notes,  mostly  in  small  deno- 
minations,   having,    it    Is    stated,    now'    reached    6,000 


■ 


millions  sterling !  The  Swiss  exchange  has  moved 
against  this  country,  and  is  21  points  lower  at  21.17^  fr. 
to  the  pound,  while  the  resumption  of  the  Dutch  cable 
service  has  resulted  in  a  fall  of  17  points  to  10.65;^ 
florins  in  the  rate  on  Holland. 

Acting  under  instructions  from  the  Treasury,  the 
Bank  of  England  has  this  week  announced  an  impor- 
tant concession  to  holders  of  the  3-J  per  cent.  War 
Loan,  which  actually  exceeds  their  own  expectations. 
The  Bank  will,  until  March  i,  1920,  be  prepared  to 
make  advances  to  approved  Iwrrowcrs  who  were 
original  subscribers  to  the  3^^  per  cent.  War  Loan, 
1925-28,  against  their  original  holding,  or  such  part 
of  it  as  they  have  continuously  held,  at  the  issue  price 
of  95  per  cent,  without  margin.  Interest  on  these  ad- 
\'ances  will  be  i  per  cent,  below  Bank  Rate  current 
from  time  to  time.  This  special  borrowing  privOege 
was  one  of  the  principal  attractions  of  the  issue  to  the 
Money  Market.  It  was  to  expire  on  March  i  next,  and 
its  extension  for  a  further  period  of  two  years  on  the 
original  terms  is  a  valuable  concession  to  Lombard 
Street,  for  the  market  value  of  the  stock  is  only  86J. 
The  Treasury,  in  behaving  so  h;indsomely  in  the  matter, 
has  created  a  goodwill  the  benefit  of  which  it  will  feel 
in  the  future. 

Holders  of  Treasury  certificates  issued  in  respect  of 
securities  lent  to  the  Treasury  under  Scheme  A  are  won- 
dering what  is  going  to  happen  next  month,  when  the 
term  of  loan  of  the  first  batch  of  securities  expires.  The 
securities  were  lent  for  a  period  of  two  years,  and  will 
mature  between  March  and  September  this  year.  It 
seems  scarcely  probable  that  the  Treasury  will  desire 
to  release  these  securities  at  this  particular  juncture, 
and  there  is  no  reason  why  the  holders  of  the  certifi- 
cates should  want  to  receive  their  securities  back  again 
and  lose  the  additional  1  per  cent,  interest  which  the 
Treasury  pays  them,  especially  as  the  holders  might 
find  themselves  also  subject  to  the  penal  income-tax. 
Probably  it  would  suit  the  Treasury,  and  it  would  cer- 
tainly suit  most  holders,  if  the  latter  were  given  the 
option  to  renew  the  loan  of  their  securities  for  a  further 
period  of  three  years,  which  would  bring  the  period  of 
loan  up  to  five  years,  the  full  term  of  deposits -made 
under  Scheme  B. 

The     Trafford     Park    Estates,    Ltd.,    offer   for    sale 
;£,5o,ooo  in  5   per  cent,    first  mortgage  debentures   at 
99J    and    50,000   £1    ordinary    shares     at     par   in    the 
Trafford  Park  Cold  Storage,  Ltd.     The  debentures  will 
be  free  of  income-tax  to  the  extent  of  5s.   in  the  £, 
and  they  are  unconditionally  guaranteed  bv  the  Estates 
Co.    both   as    to    principal    and    interest,    so   that    the 
security  may  be  regarded  as  a  perfectly  sound  indus- 
trial investment,  while  the  tax-free  arrangement  is  cer- 
tain to  prove   attractive.     The   prospectus   states  that 
cold    storage    with    a    capacity    of    approximatelv    one 
million   cubic  feet   is   being  erected    and    equipped   in 
Trafford  Park  in  accordance  with  an  agreement  made 
with  the  Ministry  of  I-'ood,  and  when  completed  it  will 
be  capable  of  storing   10,000  tons  of  foodstuffs.     The 
premises  will  be  connected  directly  by  railway  with  the 
^Tanchester  Docks  and  with  the  railway  system  of  the 
country,  and  the  site  chosen  seems  admirably  adapted 
for  the  purpose.     We  believe  that  the  total  cold  stor- 
age  at   the    ports    of    the     country    does     not   exceed 
22,000,000  cubic  feet,  and  the  new  scheme  will  provide 
a  most  welcome  addition,  besides  being  extremely  con- 
venient for  the  supply  of  Lancashire  and  the  Midland 
Counties.      It  is  estimated   that   the  cost  of  the  build- 
iiigs,   plant,    &c. ,    will   be   approximately   ;^i  10,000   in 
addition  to  jf  10,650  for  the  land,  and  the  Storage  Co. 
v.ill  acquire  them  at  cost  price  plus   10  per  cent,  pay- 
able to  the  Estates  Co.  in  debentures  and  shares.     The 
scheme  seems  a  sound  one,  and  it  ought  to  prove  both 
useful  and  successful. 

.Silver. 

A  week  ago  the  price  of  silver  was  J^d.  above  yester- 
day's price  of  42^6.  The  change  emphasises  the  atti- 
tude of  the  market  and  business  has  been  moderate 
enough.     Mocatta's  circular  says  that  supplies  continue 


200 


XTbe  investors'  TRevtew. 


February  23,  1918. 


fairly  plentiful  from  New  York,  the  per  contra  to  this 
being  a  Continental  order  whose  execution  has  pre- 
vented the  market  from  becoming:  weaker  than  it  is. 
From  Samuel  Montagu  and  Co.'s  circular  we  learn 
that  the  United  States  is  said  to  have  agreed  to  furnish 
;^i, 000,000  m  gold  to  Mexico  before  next  April  on  con- 
dition that  Mexico  will  remove  the  restrictions  now  im- 
posed upon  the  cx|Dort  of  silver.  Should  this  prove 
correct,  silver  will  presently  bec<:)me  more  abundant  in 
the  market.  As  to  the  Indian  currency,  the  same  cir- 
cular states  that  the  notes  in  circulation  were  shown  by 
the  last  return  of  the  Indian  Treasury  to  be  10,391 
lacs  of  rupees.  The  silver  reserve  is  down  to  1,345 
lacs,  as  compared  v\ith  1,510  lacs  at  January  31,  and 
the  gold  coin  and  bullion  in  India,  at  2,831  lacs,  is  the 
largest  shown  this  \ear,  but  the  gold  held  out  of  India 
is  down  to  67  lacs.  The  stock  of  silver  in  Shanghai 
on  February  16  was  about  28,900,000  ozs.  in  sycee 
and  $13,000,000  unchanged. 


BANK    OF    ENGLAND 


AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 
Week  ending  on  Wednesday.  February  20,  1918. 


ISSUE    DEPARTMENT. 


Notes  Issued 


75,880,480 


£73,880,480 


Government  Debt.. 
Other  Securities    .. 
Gold  Coin  and  Ballioo 
Silver  BullioD 


11,015,100 
7,434,900 
57,430,480 


f  75.880 .480 


BANKING    DEPARTMENT. 


PfoprletoTs' Capital 

Reet 

Publio  Deposlts(inoludli)g 
Exchequer,  Savings 
Banks,  Commissioners 
of  National  Debt,  and 
Dividend  Aooounts) ., 

Other  Deposits 

Seven  Day  and  other  Bilia 


•4.553.000  1 

3.501,354 


Government  Securities  ..  56,350,582 

Other  Seourities    ,.        ,,  101,441,053 

Notes 29,673,140 

Gold  and  Silver  Colo      ,.  1,010,987 


38,561,994  i 
131.879,319  : 
lo.op? 

£188,505,764 


Dated  February  21,  rgi8 


J.  G.  NAIRNE, 


£188,505,764 
Chief  Cashier. 


BANKING     DEPARTMENT. 


In  the  following  table  will  be  found  the  moveinents  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
Feb.  21. 


£ 

3.503.508 

48,636,080 

146,828,413 

27.924 

84,931,646 
93,215,121 
35.602,158 


Liabllltiaa. 
Rest 

Pub.  Deposit! 
Other    do, 
7  Day  Bills 
Assets, 
Gov,  Seaurliles. 
Other        do. 
Total  Reserve 


NoteClroulation 
Coin  and  Bullion 
Proportion 
Bank  Rate 


56,349,951 
95,666,673 
31,332,308 


£ 

46,060,800 

53,943,108 

19    p.c. 

S      .. 


Feb.  so, 
1918. 


£ 

3,501,354 

38,561,994 

131,879,319 

10,097 

56,350,582 
101,441,055 
30,714,127 


£ 
46,207,340 
58,471,467 

18  p.c. 

5     .. 


Increase. 


5,614,161 
Decrease. 


618,181 


6,232,343 


Increase 

f 
146,540 


Decrease . 


£ 

5,871 
450.917 

542 
Increase. 

631 

5,774.382 


6,232,343 
Decrease. 

£_ 

471.641 
I  p.c. 


LONDON   BANKEKS-   CLEAKiNG. 


Date. 

Increase. 

Decrease. 

January 

February  6 
..  13 
.,       20 

1918. 

2,073,224,000 

44;',563,ooo 

383.794,000 

395,545.000 

1917. 

1,865,125,000 

430,235,000 

440,039,000 

474,857,000 

208,099,003 
10,338,000 

£ 

56,245,000 
79.312,000 

Total 

3,293,136,000 

3,210,346,000 

218,437.000 

•35.557.COO 

CURRENCY   NOTES 
Retain  of  Currency  Notes  for  the  week  ended  February  jo,  1918. 


Issued. 

Cancelled. 

Outstanding. 

£1  notes         

los.  notes        

Notecerti&cates 
Previous  total 

S.»»7>39i 

«.i4i.73< 

290.000 

830,230,708 

3,099.480 
1,188,604 

615,066,853 

157.671,718 
36,803,175 
31,660,000 

315,163,855 

835.4S9.830 

«'9, 154,937 

216,134,893 

Ratio  of  gold  held  against  r 

otes.  this  week, 

14.66  p.c. ;  last  1 

veek  14.71  p.c. 

PUBLIC  INCOME  AND   EXPENDITURE. 

(For  7  days  ended  Feb.  1(k) 


Revenue. 


£ 

Customs          809,000 

Excise 1.430,000 

Estate,  &c.,  Duties  ..         ,,  553,000 

Stamps 145,000 

Land  Tax  and  House  Duty  240,000 

Property  and  Income  Tax  17,620,000 

Excess  Profits  Tax  ..         ..  6,390,000 

Land  Values «  20,000 

Post  Office i,;oo,oco 

Crown  Lands — 

Sundry  Loans..         ..        ..  — 

Miscellaneous 50,000 

Bullion  advances  repaid    ..  ioo,oco 

ForTreasuryBiilsfor  Supply  43,211,000 

5%  Exchequer  Bonds,  1922. .  — 

6%  Exchequer  Bonds,  1920, .  — 
Nation j1  War  Bonds         ..*I9,I03,000 

War  Savings  Certificates.,  3,600,000 
4%  War  Loan,  1929-1942  ( 
5%  War  Loan,  1929-1947  f  *  \ 
Other  Debts  created   under 
War  Loan  Act.  1915,  and 

Finance  Act,  1916..         ..  2,518,363 

Telegraph  Money  Act,  1013  — 
Under  Post  Office  Kly.  Act, 

1913 — 

Under  Military  Works  Act, 

1897- 1Q03       — 

Under  Public  Buildings    ..  — 

Under  Housing  Act..         ..  — 
Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds            — 

China  Indemnity      ..         ..  — 
East    Africa    Loan    repay- 
ments   — 

Suez  Canal  Drawn  Shares, .  — 

Ways  and  Means  Advances  9,000,000 
Decrease      in      Kxchequer 

balances       — 


Expenditure. 


National  Debt  Service 

Inter<-sl,   &c.,  on  War  Debt 

Development  &  Road  Impvt 

Payments  to  Local  Taxation 

Otner  Consolidated  Fund 
Charges        

Supply  Services 

Bullion  Advances     . . 

For  Advarxe  for  Interest 
on  Exchequer  Bonds  un- 
der Capital  Expenditure 
(Money)  Act,  1904  . . 

For  Treasury  Bills  .. 

War  Loan  and  Exchequer 
Bonds  , 

Other  Debt  under  War  Loan 
Acts,  iQu-iG 

For  Jixchequer  Bonds  under 
Seciion  61  of  Finance  Act, 
1916,  and  Section  54,  1917 

Under  Telegraph  (Money) 
Act,  1013 

Under  Post  Office  (Lon- 
don) Railway  Act,  1913.. 

Under  Militarv  Works  Acts 

Under  Housing  Act,  1914.. 

Public  Buildings  Expendi- 
ture Act,  1903 

Old  Sinking   Fund,  1907-8.. 

Sinking  Fund,   1914.. 

China  Indemnity 

East  African  Loan  . . 

Cunard  Agreement  Act     .. 

Expenditure  Certificates  .. 

Depreciation  Fund  .. 

Suez  Canal  Drawn  Shares. . 

TtmporaryAdvances  Repaid 

Increase  in  Exchequer 
balances       


3,741.310 
37.0C.. 


43,350,000 

100,000 


5<,62i,ooo 
3,418,099 
36,553.32' 


'2.797 
3,000,000 

a67.857 


£104,489,393 


£104,489,343 


*E-xcluding  sales  through  binlts  which  have  not  yet     ecn  brought  to  account 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.). 


Jan.  3Si  1918. 

Jan.  18,  1918. 

Jan.  36,  1917. 

Gold  coin  and  certificates     . . 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

£ 
94,403,400 

77,642,OD0 
10,500.000 

95,460,300 

76,646,400 
10,500,000 

60,468,300 
42,754,300 

Total  gold  held  by  banks 
Gold  with  Ftderal  Res.  Agent 
Gold  Redemption  Fund 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

182,544.400 

158,765,800 

3,99".2'0 

182,606,600 

159,345,400 

3,942000 

103,322,400 

51,664,000 

362,600 

345,301,400 
ll-.250.400 

345.694,000      1      158,349,000 

10. 067, 4^-)        \            3,515.80c 

Total  reserves 

Bills  discounted — Members'. . 

Bills  bought  in  open  market 

Total  bills  on  hand     . . 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec.      . 
Municipal  warrants      . , 
Loans  on  gold  coin  and  bullion; 

Total  earning  assets  ..' 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 
Total  dedctns.  fm  gross  dep- 
5%Red.FundagFed.Res.bkms 
All  other  resources 

Total  resources 

Capital  paid  in 

Surplus 

Government  deposits  . . 
Due  to  membrs  —  Res.  account 
Due  to  non-mbrs— clearing  ac. 
Members'  bank  deposits — nett 
Collection  items 

Total  gross  deposits    . . 

F.R.  notes  in  actual  circulat'n 

F.R.  bk  nts  in  circn— nettliab. 

All  other  liab,  in  for  Govcrdts 

Total  liabilities 

Gold  res.  ag  nett  deposit  Hab, 
Gold  res  ag  F.  R.  nts  m  act  circ 
Ratio  of  gold  res  to  nett  dep. 

and  F.R.  nts  liabilities  com 

bined      

Ratio    of    total    res.    to    nett 

deposit   and   F.R.    note  Ha 

bilities  comb  ned 


356,55i.Scx> 
125,532,400 
54,78?,4^o 


180,5 14, ^lX^ 

10,105,000 

M,5i3.8^o 

9tf  0,400 


205,934,000 
6,501,0:0 
64,740  600 


350,^61,400 
110,697,600 
51.560,800 


161,764,800 
3,142,200 


172,258,400 
9,182,200 
24,462,000 

844.8o» 


22,6Hi,6oo 
7,224,400 
3.929.400 
2,449.800 


206,747.400  I 
7,163.600  j 
76,3^1,600       } 


30.285,200 

324,600 

25.^87,400 


7i,24l,6co 
107,400 
40,200 


63s.875.oco 


14,487,800 

226,Fo3 
27,138,200 
296,148.600 

38.991,000 

7,S39.400 


369,8:7,200 

246,986,800 

1,600,000 

756.400 


633,875.000 


61.5% 
65*9% 


63-3% 


65-4% 


83.505.200 

I07,4(X» 
75.8c>o 


26,112,000 
80,000 

2.721,800 


647,297.200 


2J<i, 314/00 


I4.387.63u 

226,8  JO 

47,965.800 

284,3 1 2,6  :>o 

44.345,600 
6.155.800 


11,138,800 

5,121,403 

137.568,200 
19.474,800 


382,779.800 
247.759.400 

1,6.0,000 
543600 


162.164,400 

51.953.6c0 
57.S00 


647,297,200 


225,314.600 


61.0% 

65.9% 

63«% 

65.2% 


75  9'* 
io5-9'> 


84.2% 


86.0% 


N.EW    YORK  ASSOCIATED    BANKS   (dollar  at  4s.). 

,Feb.i6,i9i8.  Feb  9,  1918.I  Feb.2,  i9iS.;Feb.i7,T9i7. 


Loans       |  839,664,000 

Reserve  held  in  own  Vaults  .  .|  3,362.000 
Reserve  held  in  Fed.  Res.  Bk.  io3,29o,coo 
Cash  in  own  V^aults  ..  ..  19.918,000 
Reserve  held  in  Other  Depos.  1.590,000 
Nett  Demand  Deposits  . .    730,158,000 

Nett  Time  Deposits     ..         ..!    40,226,000 

Circulation         !      6,834,003 

Bzcess  Lawful  Reserve        ..      10,996,000 


37.996,000 

11,204,000 

7oi,894,ood 

53,036,000 

5,730,000 

31,362,000 

Lavk-ful  Reserve  consists  of    18%  of    the  Demand  Deposits  and  5%  of    ^^^ 
Time  Deposits. 

NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES  (dollar  at  4s.) 


£       I 
839,054,000  I 

3,570,000  1 

111,920,000  I 

19,634,000 

1,81  2,000 

7.35,830,000   i 

40,388,000   , 

6,836,000   I 

l9,i83,oco 


£       I  £ 
834,280,000  689,646,000 

3,6x0,000  i  103,316,000 


103,664,00c 
20.556,000 
1,714,000 
730,876,000 
40,616,000  I 
6,830,000  I 
l6,5i8iO0O_ 


Feb,  16, 1918. 


Lotna  ..       .. 
Specie  .. 

Deposits 
Legal  Tenders 


£ 
170.334,000 
3.634.000 


Feb.  9, 1918. 


168,620,000 
j,.j„ —         3.654.000 
170,082,000  ]   167,734.000 
'6,594,000  '     14,878,000 


Feb.  3,  1918. 


£ 

166,938,000 

3.554,000 

106,426,000 

15,038.000 


Feb.  17.  «9I7- 


iso.sg'.'oo 
13,320,000 

l6o,4}3.00« 

3,308.000 


FeBRI  ARV   23,    I918. 


tlbe  Jnvestors'  IRevlew, 


20  r 


BANK  OF  FRANCE  (25  Iranci  to  the  £). 


Feb.  21,   igiS 

Feb.  14,  1918. 
I 

Feb.  7,  1918. 

i 

Feb.  22,  1917. 

I 

i 

Gold  In  band 

133,184,720 

133,129,380 

•  33.069,560 

127,876,760 

Silver  in  hand 

10,136,600 

10,086,720 

10,022,760 

10,912,280 

Bills  dlsoountad      .. 

50,114,920 

53,394.160 

53,880,640 

20,505,960 

48,505,080 

48.684,160 

49,465,040 

49.478,960 

NoteotroulatiOQ 

959,451,480 

952,847,040 

949,604,760 

7i5,54^,8co 

Public  deposits 

771,760 

1,676,720 

10,823,963 

2,231,120 

Private  deiioslls 

104,323,880 

•05,377,040 

103,256.160 

98,063,880 

Poreign  Bills.. 

8i5,403 

708,080 

656,640 

87,760 

Proportion  between  bullion  and  circulation  23.43  per  cent.,  against  23.58  per 
•ent.  last  week.  Advances  to  the  State  1^506,000,000,  increase  ^"6,000,000.  'fhe 
adjourned  payments  of  drafts  in  Parts  oa  account  of  the  moratorium,  ^f  19,730,880, 
decrease  jf  182, 120,  ind  at  the  branches  £25,019,080,  decrease.  £28,760. 

BANK   OF   SPAIN  (25  pesetas  to  tbe  £), 


Gold        

Silver 

Foreign  Bills 

Discounts- ana  Stiort  Bills  .. 
Tteasurf  Acoount,  &c. 
Notes  In  Circulation  .. 
Current  Accounts,  Deposit! 
Dividends,  Interests,  &c.     ., 
Government  Seourities 


Feb.  9, 1918  Feb.  2,  igiSJan.  26, 1918 


t 

79,133,368 

28,265.027 

3,486,003 

28,270.097  ' 

26,991,740  1 

•  •4,037.296  i 

i    38,767,462  i 

I.75I.905  \ 

'      1,051,886  . 


£ 

79,024,706 
28,492,588  j 

3.536,575 
28,077,028 
26,312,300 

••3, '05,750 

38,446,675 

2,301,420 

1,176,247 


f. 

79,018,335 

28,517.939 

3.534,523 

28.337,011 

26,792,163 

••2,435,686 

38,728,904 

2,021,545 

1,436,668 


Feb.10,1917. 


£ 

5i!, 363,542 

29,665,252 

3.463.3t7 
26,324.118 
26,196,845 
96, 1 2g, 650 
30,036,053 

1,606.696 
904,462 


NETHERLANDS  BANK  (12  Florins  to  the  £) 

. 

Feb.  16,  rgiS. 

Feb.  9, 1918 

Jan.  26, 1918 

Feb.  17,19x7. 

Gold  and  Silver 
Bills  and  Advances    .  • 
Note  circulation 
Deposits 

60,301,250 

14,321,666 

7^,394.666 

7.345.250 

60,309,250 

•5.349,999 

72,258,749 

7,712,500 

59,514,666 

•5,502,333 

72,809,916 

6.249,916 

£ 

49,753.000 

•3.895.166 

61,690,416 

5.759.583 

BANK  OF  NORWAY. 


Gold 

Balanoe  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
Dlsoounts  &  Loans.  '■ 
Notes  io  Circulation 
Deposits  at  notice..  I 


Jan.  31, 1918. 


6,414,000 

3,839,000 

720,000 

20,545,005 

16,972,000 

11,025,00c 


Jan.  22,  Z918.  I  Jan.  15,  1918 


£ 

6,413,000 

4,506,000 
690,-500 
20,703,000 
16,820,000 
11,523.000 


£ 

6  413,000 

4,540,000 
7^9,000 
21,154,000 
17,093,000 
11,920,000 


Jan.  31,  1917. 


£ 
S,677,ooo 

h234,COO 

767,000 
J, 741,000 
5,893,000 
1,619,00a 


SWISS  NATIONAL  BANK  (25  trancs  to  the  £). 


i 


Gold  and  silver 

Bills 

Note  oiroulatioo 
Current  and  deposit 
accotints     .. 


Feb.  7,  1918. 


£ 

16,723,652 
10,185,452 
24,811,716 

5,469.7'>2 


Jan.  31,  1918. 


£ 

16,693,853 
10,587,276 
25,324,100 

5.525.920 


Jan,  23, 1918. 


£ 

16,651,336 
9,782,264 
24.355,716 

4.854.348 


Feb.  7,  1917. 


£ 

15,861,480 
6,276,056 

20,C02,g72 

3.918.652 


BANK    OF    SWEDEN. 


Gold 

Balance    abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  . . 
Discountsand  Loans 
Notes  In  oircul?tioa 
Deposits  at  notice  .. 


Jan.  26, 1918.    Jan.  19,  1918. .  Jan.  12,  1918. 

13,125,000 
7,196,000 


7,407,000 

3,436,000  I     3.436,000 

11,989,000  12,686,000 

27,868,000  28,595,000 

8,143,000  '     8,005,000 


Jan.  27,  1917. 


2,880,000 
13,516,000 
28,902,000  I   19,853,000 

8, 66 1, OOP  ^   6,692,000 


£ 

10,364,000 

8,400,000 

3.549.000 
5,282,000 


BANK  OF   ITALY   (25  lire  to  tbe  £). 


Dec.  31, 1917  Dec. 20, 1917'Dec.io,  1917  Dec.  31,  X9i6 


Total  cash         j    45,379,080 

Inland  Bills       j    30,285,400 


Foreign  Bills 
Advances 

Government  securities 
Circulation 
Daiposits  at  notice 
Cuwent  accounts 


885,000 
I  17,453.200 
i  8,924,840 
I  261,567,60? 
!  35,458,280 
20,663,840 


£ 

42,884,760 

28,521,920 

907,^00 

17,829,040 

8,810,960 


£ 

43.776.080  ( 
32,174,000  I 
929,120  i 
20,894,080  , 
8,689,960  1 


257.735,563  1256,695,760 
35,333.480  I  33.454.720 
22,121,680  '   21,923.760 


45: 


£ 

,624,240 
.593.120 
832,400 
,280,520 
790,400 
,069,980 
,400,880 

365-44<' 


LONDON  COURSE  OF  EXCHANGE. 


Place. 

Usance. 

Feb.  19,  1918. 

Feb.  21,  1918. 

Sellers.  Buyers. 

Sellers. 

Buyers. 

Amsterdam  . ,    . . 

Pans      ..    y,    V. 

Switzerland!!    !! 

Petrograd    . .     . . 

Genoa,  &c 

Spain     

Lisbon  and  Oporto 
Copenhagen..     .. 
Christiania  ..     .. 

Stockholm   ..     .. 

Cable  transfers 

Three  months'  bills  . .     , . 

Cable  transfers 

Three  months'  bills..     ,. 

Cable  transfers 

ThreK  months"  bills..     ,. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Three  months' bills  . .     .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

10.67 
10.80 
27- 15 
27-55 

21.25 

21.60 
nom. 
41.30 
19.62 

lli 

•5-45 
14-95 
•4-33 

10.72 
10.85 
27.20 
27.60 
21-35 
21.70 
nom. 
41.40 
19.72 

5\ 
30I 

•5-55 
17.05 
•4-43 

10.67 
10.82 
27.15 
27.55 
21.23 
21.58 
nom. 
4^-58 
•9-57 

29J 
•548 

•  5-05 
•448 

to. 72 
10.87 
27.20 
27.60 
21.33 
21.68 
nom. 
41.68 
19.67 

58:: 

30, 
•5-58 
■5^5 
•4.58 

Thirty  and  sixty  day  remttted 
Three  months  ,, 

Four  months  ,, 

Six  months  , 

Three  months  &ne  inland  bills 
Four  months 
Six  months 


OPEN  MARKET  DISCOUNT.  Last  week.  This  week 

Per  cent.    Per  cent. 


33 

3ft-S 
3?.-.-8 

3ft-8 

4\-i 
44-J 


33 
3ft 

3ft-a 

4-i 
4  J- 1 


BANK    AND   DEPOSIT    RATES.    La.t  week  This  week 

Percent.  Pet  cent 

Bank  of  England  minimum  diaoouQt  rate        5  ••        5 

,,  ,,         short  loan  rates  —  ..        — 

Bankers' rate  on  deposits 3  ••        3 

Bill  brokers' deposit  rate  (oall) 3  ,,        3 

,,  7  and  14  daye' nolioe  3i  ..        3i 

Current  rates  for  7  day  loans  3!  .,        3t 

,,  for  call  loans  3 — J  .,     2i— 3 


FOREIGN   RATES    OF   EXCHANGE  ON   LONDON. 

Method  of 

4 

Last 

This 

Quoting. 

s-s 

0.   M 

Week. 

Week. 

Paris,  cheques 

Francs  10  £'1 

25 .22  J 

27.16 

27.18 

Amsterdam,  cheques 

Florins  to  £1 

I3.107 

10.77 

•0.70 

Italy,  sight 

Lire  to  ;ri  .. 

25.224 

41.15 

4^-45 

Madrid,  sight.. 

Pesetas  to  £1 

25.224 

">-67 

.9.624 

Lisbon,  sight 

Pence  to  milreis  . . 

53id. 

29  W  ■ 

29.ld. 

Switzerland,  sight   .. 

Francs  to  £i 

35.224 

2^-254 

21.274 

Christiania,  sight 

Kroner  toXi 

18.159 

14.90 

•5-45. 

Stockholm,  sight 

Kroner  to  £1 

•8.159 

•  4-274 

14.85 

Copenhagen,  sight   . . 

Kroner  to  £  1 

18.159 

•5-424 

15.70 

Petrograd,  sight 

Roubles  to  £10     .. 

94-57 

— 

nom. 

Alexandria,  sight 

Piastres  to  ;ri 

974 

974 

974 

Bombay,  T.T 

Sterling  to  rupee.. 

•/4 

I/4|4 

1/454 

Calcutta,  T.T 

Sterling  to  rupee.. 

•  /4 

•mH 

•/434 

Hong  Kong,  T.T 

Sterling  to  dollar.. 



^/••4 

lllli; 

Shanghai,  T.T 

Sterling  to  tael     . . 



4/34 

4/24 

Singapore,  T.T 

Sterling  to  dollar. . 



2/3« 
2l4 

!/3fS 

Yokohama,  T.T 

Sterling  to  yen     . . 
Dollars  to  £1 

24.58d. 

2/lJ 

New  York,  cable      .. 

4.S6S 

4-76I 

"•"5 

Buenos  Aires,  T.T 

Pence  to  dollar    . . 

47-58d. 

5od, 

5oid. 

Valparaiso,  90  days . . 

Pence  to  peso 

i4d 

'"i 

IJontevideo,  T.T 

Pence  to  dollar     . . 

5^d. 

5H<1- 

59^- 

Rio  de  Janeiro,  90  days    . . 

Pence  to  milreis  . . 

l6d. 

J3id. 

^^d. 

Position  of  Canadian  Banks. 
In   the  following  we  compare   the  condition  of  the  Canadian' 
banks,  under  the  last  two  monthly  statements,  with  the  return  for 
June  30,  1914  : —  


Assets. 
Gold  and  subsidiary  coin — 

In  Canada 

Elsewhere 


Dec.  31, 
1917. 


Nov.  30, 
1917. 


Total 

Dominion  notes    

Deposit  with  Minister  of 
Finance  for  security  of 
note  circulation    

Deposit  in  central  gold 
reserves  

Due  from  banks    

Loans  and  discounts   

Bonds,  securities,  &c 

Call  and  short  loans  in 
Canada 

Call  and  short  loans  else- 
where than  in  Canada. . 

•Other  assets    

Total  

Liabilities. 

Capital  authorised 

Capital  subscribed 

Capital  paid  up    

Reserve  fund    


Circulation    

Government  deposits  .... 

Demand  deposits 

Time  deposits   

Due  to  banks 

Bills  payable 

Other  liabilities    

Total,  not  including  capital 
or  reserve  fund 


55.348.784 
26,684.073 


82,032,857 
167,509,121 


5.769.631 

97,270.000 

191,400,677 

1,016,241,854 

468,406,273 

71,779,020 

134,483,482 

88,270.706] 


54.531.971 
28,647,758 


83.179.729 
I65,5'5.i37 


5,764,060 

91,120,000 

195.452.813 
:, 010, 028,235 
470,128,272 

72.178,345 

'139.832.552 
87.071.480 


2,323,163,62112,320,270,623 


189.S6C, 
112,091, 
111,673, 
114. 100. 


192,923, 

82,780 

744,220, 

995.978 

33. 508 

3.479 

28,842 


666, 
466, 
776 
693 
824 
074 

975 

oi3ii 

646 

765 

025 


189,866,666 
112,088,966 
111,669,770 
114,046,753 


2,081,733,322 


196,135,810 
90,470,59 

714.514.37 
,008,657,87 
34,502,346 

3.387.855 
30,432,301 


June  30, 
1914. 


28,948,841 
17,160,111 


46,108,952 
92,114,482 


6,667,56* 

3,050,000 
123,608,936 
925,681,966 
102,344,120 

67,401,484 

137,120,167 
71,209,738 


1.575.307.413 

192,866,666 
115,434,666 
114,811,775 
113,368,898 


99,138,029 
44.453.738 
495  06^:832 
663,650,230 
32,426,404 
20,096.365 
12,656.085 


078,1 01.159  1.330.488,683 


Note. — Owing  to  the  omission  of  the  cei 
the  footings  in  the  above  do  not  exactly  a; 


nts  in  the  official  reports, 
ree  with  the  total  given 


The   Week's    Stock   Markets. 


A  gootJ  many  reasons  could  be  found  to  explain  why 
conditions  on  the  Stock  Exchange  cannot  be  very  cheer- 
ful. There  was  a  sharp  crisis  in  the  domestic  political 
situation  which  kept  the  atmosphere  well  charged 
with  electricity  for  a  few  days,  and  that  kind  of  thing; 
has  always  an  adverse  effect  on  investment  business. 
Then  the  Russian  position  appears  to  go  from  bad  to 
worse,  and  no  one  can  forecast  what  the  immediate 
future  may  have  in  store  for  the  unhappy  country.  But 
apart  from  these  extraneous  influences,  it  is  probably  a 
fact  that  whatever  weakness  has  been  displayed  is 
mainly  the  result  of  over-speculation  during  the  past 
few  months.  Shipping  shares,  breweries,  and  several 
groups  of  industrials — particularly  armament  and  ex- 
plosive shares^were  taken  in  hand  and  run  up  to 
prices  which   no   prudent   investor   would   follow.        A 


202 


ITbe  3nv>e6tor8'  TReview. 


February  23,  1918. 


I  Last  I  This  11 
IWeeklWeek  I 


I  Last  I  Thii 
I  Week  Week 


Consols, . . . 
War  Loan 


5%    l!H9-47.- 
4%,  1919-42..  j 


India  3%  ■ 

„     3*% 

Australian  sj%,  1020-21  . 

Canada  4%,  1940-60 

.,       44%,  1920-S 

N.S.W.  4%.  1933 

Argentine  4%,  1900 

'Beldian  3% 

BiBzil,  1913 

„,  ..      5%.  I9>4    

Chinese  1896 

,,       iqi2 , 

Bgypt  Unified  4% 

Caledonian  defd , 

Gt.  Central  pia 

,,       „        dfd 

■Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd.  . 
London  Chatham  ord.... 


Canadian  Pacific  

E.  Indian  Guar.  4^  %  debs. 
Grand  Trunk  ord.    

Do.  1st  pf 

Do.  3rd  pf 

Antofagasta  dfd 

Brazil  Common 

B.  A.  &  Pacific  

B.  A.  Gt.  Southern 

B.  A.  Western    


H 
loot 

934 

102 

55} 
643 


93) 

67* 

62JX 

70 

79i 

94 

82« 

86' 

94 
134 

61 
34 
35i 
86 
64)} 
6oi 


161} 

84 
9i 
55 
22J 

132 

5 

38S 
72J 
70 


looj 
93i5 
102 

64 

98 
Ht' 
93! 


% 


6,, 
6: 
70 
80 

^24 

86 
9h 

"h 

34i 

SSX 

86 

64JX 

59 


161J 
84 
9l 

55 
22J 

»33 
5 

38i 

72 

70 


N.S.W.  4i%5yr-bd8 

..      44%.  '9"-7 

>,       5%.  1921-3 

5J%.  ■920-«  •••• 
New  Zealand  4%,  1929  .. 
Queensland  4% 

p.  45%.  '920-5    •• 

Union  of  b.  Africa  4J|%, 

1920-5    

Victoria  4i%,  1920-3 

Westn.  Aus.  4%    

French  War  Loan,  5%  . . 

Japan  4i%  (ist),  igoj    

,.,        5%.  1907 

Mexican  5%,  1899    

Russia  4   % 

»      4.i%,  >9og 

•I      5%.  '906 

London  and  N.-W 

London  and  S.-W.  dfd.  .. 
Do     red.  pf.  1914 

Metropolitan  

Do.       5%      pf.. 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth. -Eastern  

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern 


1 

Cent.  Argentine  ord... 

Leopoldina 

Mexican  ord 

San  Paulo  (Brazilian). 
United  of  Havana 


99 

''1 

hi 
eoj 
94 

79J 


994 

'i 

58 

38J 

40 

49 

92 

33i 
94 

224 

I5i 
59 

gel 

29 
56 
20I 
26} 


Anglo-South  American 
Bank  of  Australasia.... 

.Bank  of  N.S.  Wales 

aarclay  &Co."A" 

Do.       "B"  .... 

Capital  &  Counties  . . . . 

'  Chartered  of  India    . . . , 
Hongkong  &  Shanghai 
Lloyds  

J^ondon  &  Brazilian. .. . 


Armstrong,  Whitworth  . 
Birmingham   Small  Arms 

Cammell- Laird 

Cargo  Fleet 

X>orman,  Long  

Associated  Cement 

Borax  dfd 

Bovril    

Brazil  Traction  

British  Araer.  Tobacco  pf. 

British  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Kellner 

Coats 

Courtaulds 

Cunard 

Dennis  Bros 

Eastern  Telegraph   '■  Tsij 

il^astmans I    11/3 

English  Sewing  Cotton  ..I  55/6 

Anglo-Egyptian  "B"  .... 

Baku  (los.) 

Burmah 

Lobitos 

Maikop  Pipeline  

Mexican  Eagle  pf 

AUagara/- , 

Anglo-]ava  Rub.  2;-     

Anglo-Malay  2/ 

Ayer  Kuning  £1 

Batang  Malarka  2/- 

Bekoh2;- 

Brit.  N.  Borneo  Trust  t 

BukitCloh2/- 

Bukit  Kajang  £1 

Bukil  Mertajam  2/-  

Bukit  Sembawang  2/-  ... 

Carey  United  £1   

Ceylon  Para  2/- 

Chersonese 

Cheviot  2/-  

Dalkeith  2/- 

Eastern  Invest.  Trust  £1 

Grand  Central  £1 

Gula  Kalumpong£i 

Highlands  £1 

Java  Investment  £1 


7i 

74 

I2r 

121 

36X 

36X 

^ 

7i 

12* 

124 

24* 

27 

72i 

724 

•^^^ 

86 

24  h 

244" 

25 

25 

42/6 

43/ 

59/ 

58/6 

7 

7 

27/ 

27/ 

40/ 

39/6    : 

London  City  &  Midland.. 
London  County  &  Wesf. . . 

London  Joint  Stock 

Nat.  Prov.  otEng.(-Cioi  pd) 
Do.  (£12  pd) 

Parr's    

Standard  of  S.  A 

Union  Discount 

Union  &  Smiths 


Kynochs   

Mond  Nickel  ord 

South  Durham  Steel 

Thornycroft    

Vickers 


Fine  Cotton  Spinners  .... 

Forestal  Land 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay    

Imperial  Tobacco  '  C  pf 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd , 

National  Steam  Car , 

Pears,  A.  &  F - 

P.  &0.  dfd 

Royal  Mail 

Underground  Inc.  Bds.  .. 


32/ 

33/9 

1/9 

1/9 

4 

% 

2/ 

2/ 

63/3 

63/6 

Java  Para  £1 

Johore  Rubber  Lands  £t. 

Kamunini,'  2/- 

KintaKelIas2/-  

Kuala  Kubu  2/-  

Labu  2/- . 


Langen  lava  £i... 

Linggi2/- 

London  Asiatic  a/-. 

Malacca  £1 

Malayalam  £t 

Merlimau  2/-   

Padang  Jawa  2/-. . . 
Pataling  2/- 


Abbontiakoon  (10/-) 

Bechuanaland  Exp 

Brakpan  

Broken  Hill  Prop.  (8/-)   . 

Cam  &  Motor 

Central  Mining  (£12)  ... 

Chartered    

CitrDeep     , 

Cons.  Gold  Fields    ..... 

Cons.  Langlaagle 

Crown  Mines  (10/-)  .... 
De  Beers  dfd.  (£2  lo'i.) 

East  Rand  

Geduld 

Gov,  Areas  Mod 


3/3  I 
6/ioi' 

'3'9  I 
48/6 
4/74 
4/5 
17/ 

5/;4; 

72/6 

4/7JX 

3/44 
44/ 
9/44 
3/44 
6/3 
3/ 

25/9 
=7/9 
34/3 
59/ 
28/6X 
30/9 
33/6 
4/2 
4/ 

2/7J 
10/3 
45/ 
27/ 
8/6 

5i 
39/9 
5/44 
3/91 
42/ 

4/3 
7/3 

5^ 
59/6 
12(3 

6A 
15/6 

3S^ 
32/9 
19/6 

2 

■//6 


3/li 

6;iO' 

■4/ 

48/6 

4/7i 

4/5 
-.71 

5/14 

73/6 

4/74X 

3/4 

42/9 
9/44 
3/44 
6/14 

2/104 
25/9 
27/6 
35/ 
59'3 
28/6X 
31/6 
33/74 
4/ 

*". 

2/74 

10/14 

45/ 

27/ 

8/6 

39/6 
5/3 
3/9X 
42/ 

4/3 
7/3 
5*, 
62/9 


North  Caucasian  . 
Roumanian  Cons., 

Shell 

Spies  (10/-) 

Ural  Caspian 


Perak  2/-    

Port  Dickson  2/-  

Rub,  Estates  Johore  £1.. 
Rub.  Estates  Krian  2/-, , , . 

Rubber  Trust  £t 

Sampang  (Java)  2/- 

Sapumalkande  £1     

Seaport  £1 

Selangor 

Sengat  2/- 

Seremban  £1 

Shelfordfi 

Sialang  £j    

Singapore  Para  2/-    

Singapore  United  2/-    . . . . 

Soember  Ajoe  2/- 

Stagbrook  £1 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  £1   

Sungei  Kapar  2/-   

Sungei  Kruit  £l..,« 

Taiping  2/- 

Tali  Ayer  £t  

Tandjong  £1   

Tandjong  Malim  £1 

Tehran  £1  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdang  2/- 

United  Sumatra  2/- 

Val  d'Or  2/- 

Vallambrosa  2/- 

Way  Halim  1/8  pd 


9H 
94 

79i 
783x 
98 
93 

58 

364 

384 

484 

23J 
94 

22i 

77 
154 
58 
Hi 

96} 

2£j 
56 

20 


good  deal  of  stock  was  released,  while  the  movement 
was  in  full  swing,  but  recent  buyers  are  now  showing 
some  anxiety  to  secure  their  profits,  and  no  one  seems 
at  all  anxious  to  relieve  them  of  their  holdings,  so  that 
the  offering  of  even  a  small  amount  of  stock  creates 
a  quite  disproportionate  depression.  TTiat  always 
happens  in  restricted  markets  where  business  is  largely 
a  matter  of  negotiation,  and  in  some  respects  it  is 
surprising  that  it  has  not  had  more  effect  on  prices, 
which  seemed  to  have  soared  to  a  dangerous  level.  Ar- 
gentine labour  troubles  have  again  been  settled  for  the 
time  being,  and  we  hope  the  country  will  quickly  sur- 
mount the  unnecessary  difticulties  which  have  been 
created,  as  it  is  wasting  splendid  opportunities  of 
doing  such  a  profitable  business  as  would  sot  it  on  its 
feet  for  a  generation  to  come. 


Gt.  Boulder  (2/1    .... 

Kyshtim    

Mashonaland  Agency 
Meyer  &  Charlton    .. 


11/9   I  Modder  "  B' 

64     1      Do.    Deep.... 
15/6     Mysore 

SA     Rand  Mines  (5/-) 
32/3  I  Rio  Tinlo  (£5)  . . 
19/3   1  Russo-Asi  itio . . , . 

14S  !  Spring  Mines.... 

13     I  Tanganyika 

5/3    I  Tanalyk    

Van  Ryn  Deep  .. 


6/104 


m 


Brokers  with  a  fairly  large  miscellaneous  connection  in 
specialities  say  that  quite  a  consider.ible  amount  of  business  is 
passing  through  the  "  House";  but  those  whose  interests  are 
mainly  confined  to  investments  find  that  their  order-books  are 
not  well  filled.  As  a  matter  of  fact,  the  dealings  marked  both 
in  the  official  and  unofficial  lists  have  barely  averaged  3,000 
per  d.iy,  and  there  can  scarcely  tie  enough  profit  out  of  that 
to  do  much  more  than  pay  office  expenses.  At  the  opening 
the  Funds  were  dull,  but  subsequently  War  Loans  came  into 
SDrae  prominence,]!  and  the  3^  per  cenis.  pariicularlarly  were  well 
supported,  on  the  extension  of  the  borrowing  facilities  attaching 
to  this  Cinderella  of  the  group,  about  which  details  are  given 
in  our  Money  Notes,  Colonial  loans  were  scarcely  mentioned 
until  towards  the  end  of  the  week,  when  a  demand  sprung  up,  and 
a  large  number  of  the  stocks  registered  gains  of  %  to  i. 
Foreign  stocks  as  a  rule  were  dull,  owing  to  the  disappoint- 
ing situation  in  Russia,  but  Russian  securities  are  ahnost 
unsaleable,  and  prices  have  reached  what  we  may  liope  is  a 
bed-rock  level.  French  War  J..oan3  were  dull,  but  Spanish 
improved,  and  Japanese,  Argentines,  Brazilians  and  Chileans 
were  all  harder  on  balance.  Cuban  Ports  also  advanced 
smartly  on  the  definite  settlement  with  the  Government,  but 
Chinese   issues   gave  way  to  some  extent. 

Home  Railways  began  with  a  dull  tendency,  and  subse- 
quently lapsed  into  almost  complete  neglect.  The  changes 
ha.ve  been  mostly  unimportant,  and  without  any  significance 
whatever.  The  American  market  was  dull,  but  International 
Mercantile  Marine  shares  advanced  several  points  on  the 
belief  that  the  company  must  be  making  enormous  profits. 
Canadian  Pacifies  were  firm,  but  very  much  neglected,  and 
when  Grand  Trunks  were  mentioned  it  was  only  to  mark 
prices  lower.  Argentines  were  very  weak,  but  hardened  a 
little  on  slightly  improved  traffics,  and  one  more  temporary 
settlement  of  the  labour  difficulties.  Nothiqg  happened  in 
the  Mexican  division,  and  San  Paulos  and  a  few  other  stocks 
in  this  class  were  weak. 

Among  Bank  shares,  the  outstanding  incident  of  the  week 
was  a  sharp  advance  in  Joint  Stocks,  on  the  announcement  of 
the  amalgamation  with  the  London  City  and  Midland.  Capital 
and  Counties  shares  also  were  in  good  dem,and,  and  advanced 
2  to  3  points,  while  Canadian  Bank  of  Commerce  also  im- 
proved, but  Hongkong  and  Shanghai  lost  a  point.  Breweries 
have  lost  the  elasticity  which  they  displayed  so  markedly  until 
recently,  and  all  the  leading  favourites,  such  as  Allsopps,  City 
of  London,  Watney,  Combe,  ,ind  .several  others  have  given  way 
more  or  less  sharply.  Egyptian  securities  have  received  a  fair 
ainotint  of  attention,  and  several  of  the  active  shares  have 
gained  to  a  small  extent,  but  the  movements  are  not  of  much 
significance.  Iron  and  Steel  shares  were  at  one  time  weak,  but 
the  tendency  became  firmer  towards  the  close,  although  here 
also  a  good  deal  of  the  speculative  interest  has  evaporated. 
Land  shares  were  neglected  most  ol  the  week,  but  Hudson's 
Bays  gained  a  small  fraction,  while  Xigers  lost  ground.  Nitrates 
were  without  any  feature.  .Shipping  sh;ires  have  become  de- 
cidedly fiat  on  profit-taking,  as  it  appears  to  be  recognised 
that  prices  were  going  ahead  too  fast.  Indo-China,  however, 
put  on  a  couple  of  points,  while  P,  and  O.  fell  to  a  similar 
extent,  and  the  other  movements  were  erratic.  Among  Textiles, 
Courtaulds  and  Bradford  Dyers  were  very  firm,  but  Sewing 
Cotton  lost  ground.  Industrials  generally  wore  irregular,  with 
a  dull  tendency,  but  Welsbachs  weie  rather  conspicuous,  and 
Bell's  Asbestos  and  Salt  Union  showed  strength.  Marconi 
i.ssues  displayed  a  sagging  tendency  throughout  the  week. 

Oil  shares  have  not  attracted  much  attention,  and  apart  from 
small  gains  in  Anglo-Egjptians  and  "  Shells,"  prices  have  been 
inclined  to  ease  off,  with  Lobitos,  North  Caucasian,  and  Ural 
Caspians  particularly  weak.  Rubber  shares  have  become  almost 
stagnant,  but  prices  are  fairly  well  maintained,  i.n  anticipa- 
tion of  the  reports  which  will  be  coming  out  .soon,  and  which 
are  expected  to  show  excellent  results.  The  price  of  that  com- 
modity hovers  around  2s.  3)d.,  and  so  far,  at  any  rate,  the 
schemes  for  reconstruction  of  output  have  not  benefited  the 
market  appreciably. 


It  was  stoted  in  Piarliament  .the  other  day  that  the  cost  of  the 
Food  Control  Department  up  to  the  end  of  the  year  was 
^153,000.  In  December  alone  it  was  /42,ooo,  "and  likely  to 
increase,"  so  that  on  this  basis  we  may  expect  a  bill  of 
j£6oo,ooo  a  year  before  long.    We  h'bpe  it  is  worth    the  money. 


FunRLARV  2^^,    iqiS. 


tTbe  Jnveetors'  IRcview. 


203 


LONDON    PRODUCE   MARKETS. 

There  nas  a  moderate  amount  of  business  in  force  during  the 
week,  and  prices  for  the  cliiel  part  ruled  steady. 

Sugar. — Market  remained  at  recent  level  of  prices.  Cuban 
receipts  for  past  week  totalled  132,192  tons;  centrals,  193. 

Coffee. — The  market  continued  in  a  very  firm  state,  and  a  good 
demand  was  experienced  for  all  descriptions.  At  public  sale, 
superior  to  extra  prime  Santos  sold,  74s.  to  77s.;  fancy  pale, 
87s.  6d.  to  88s.  ;  washed  Santos,  94s.  to  95s.  6d.  ;  loug-berry 
Mocha.  ri4S.  to  115s.  6d.  The  market  for  future  delivery  ruled 
quiet,  but  firm. 

Cocoa.— Of  16,247  bags  offered  by  auction  only  a  small  part 
sold,  at   irregular  and   occasionally  easier  prices.     Grenada,  fair 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK   ENDING    FEBKU.\RY  22.  1918. 


I.ast 

Week. 


'Ibis 
Week. 


•a tar— pet  c 
duty  14/,  c 
polarisation 

Tate's  Cubes 

Crushed..     .. 

Granulated  . . 

l-yte's  granulated 

Foreign  granu- 
lated, first  marks 
f.o.b.,  spot 

GormanCubel.o.b. 

French  Cube 

prompt 

Crystallised,  Wesi 
India 

Ceet,   88%    f.o.b. 

Taa--per  lb.,  duty 

Indian  Pekoe 
Broken    ,, 
Orange    ,, 
Ffroken    ,, 
Pekoe    S:>i]ohong 
Ceylon  Pekoe     , 
Broken    ,, 
Orange    ,, 
^iroken    ,, 
i'ekoe  Souchong 

Cocoa  —  per  cwt 
duty  6d.  per  lb. 

Vrinidad — percwi 

•  Grenada 

West  Africa 

Ceylon  Plantatior 

Guayaquil  Ariba.. 

Uotfee — per    cwt. 
duty42/-percwt. 

ti:ast  India    .,     ., 

lamaioa 

CToeta  Rica  ,,    ,[ 

Provisions— 
Butter,  per  ctvt. 

^usiraitan  finest 

Argentine     . .     . , 

Irish  Creameries 

Dutch  diuo..     .. 

'^.usaian  finest    .. 

Paris  baskets      .. 

iJanish  finest 

Brittany     toils  —1 
doz.Ib.     ..     . 


I 


£    s.   d 


Dom. 
nora. 


2    6    > 
nom. 


nom. 

nom. 
nom. 
nom. 
nom. 
nora. 
nom. 
nom. 
n&m. 
nom. 


£    5. 


a. 

87  o 
^5  " 
55  6 
77  o 


p  d 
■99  o 
98  0 
70  0 
94  0 


X10/-112/ 


nom. 
nom. 


269 
nom. 

s.  d.  s.  d 

nom. 

nom, 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom.      j 

.  d.  s,  d 
87  o-  99  ( 
35  0-  9S  c) 
65  6-  70  c 
77  o-  94  o 

110/-T12/ 


Wool— per  lb. 
*i  u  s  t  r  a  t  I  a  n 

Scoured  Merino 
Sco-jred  Cr'ssbr'd 
Greasy  Merino  . . 
Greasy  Crossbred 
New  Zealanc^ 
(scoured)  Merino 
Greasy  Crossbred 
Cape  snow  white 

Indlarubberp.tb 

Plantation,      Spot 

Crepe  . .    , , 


Last 
Week. 


nom. 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


rooo  121  6 
770  151  0 
10^  0  127  0 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


Ooai—perton 

l>nrbam,  best  .. 

Seconds        ,,  ,, 
ii^jst  HacttepooK. 

Seconds       ..  ,. 
Steams,  best 

Seconds       ..  ,. 

ijcad— pertou. 
iiiiglish  Pi^..     ., 
j  i''oreign  soil,  net 

Quicksilver— ptr 
;    bottle  firsthand 


-per  cwt. 


Baoon- 

Icish 

Continental..  ', 
Canadian  ,,  . 
American  ,.  . 
Hams — per  cwt, 

Irish       

Canadian  .,  , 
AoQerioan     ,.    , 


II 


-per  cwt. 


Oheese 

Dutch 
Cauadian  ..  .' 
Eoslish  Cheddar 
-/iita  Joai  ,.  ,. 
New  Zealand 

filce— per  cwt. 

Japan     

Kangoon  2  stars  . . 

Eii^s— per  120. 

English 

Irish      

D  iiush 


Qpelter— 

G.O.li.  as  to  po3i 
tion 


Hour— per  sack. 

Country  Straight 

Runs  ex  Mill.. 


172/ 

17  I 

172/ 

i72/-iao/ 

203/ 

162/-165/ 
125/-165/ 

129/6-160/- 
nom. 
142/ 
nom. 
noiii. 

s.    d. 
Dom. 
26    3 


105-0  125-C 
77-0  151-0 
iio-o  134-t 


252/ 

252/ 
nom. 
nom. 
nom. 
nom 
nom 

nom. 


172/ 

172/ 
i7U~i72} 
t7i/-i8o/ 


rin— per  ton 

•£n({lisb  Ingots 
Oo.    b:irs 

.-;iandard  cash     . . 

Tin  Plates, per  bo> 

Copper — per  ton. 

English,     Toii^b, 
per  ton      ..    . 

liest  &eleot:jd     .. 

Sbeets 

Standard      . .     . . 

Jute— per   ton. 

Native    firsts    for 

shipment 

JtJs— 

Linseed,  per  ton.. 

Rape,  refined  .... 
,,        crude   .... 

Cott'n  Set-u.cruih 

Ditto,  rfcfined      .. 
U'eiroleuui  Oil.pei 
8  lbs. 

Water  Wbtte      .. 

Oil  Seeds, l-iuseet! 

^aicntta — pet  ton 

Spot 

ji<:-tpe      


2     3l 


This 
Week. 


nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom. 


203/ 
1G2/-165/ 
125/-165/ 

129/6-160/ 
nom. 
142/ 
nom. 
nom. 

'.    d. 
nora. 
26    3 


44  0-45  o  143  0-44  0 

42  c-44  0   40  0-42  o 

nom.       40  0-44  o 


34  o  50  o  154  0  50  o 


44/3 


44/3 


Iron— per  ton 

ICleveland  Cash  ., 
jTobacco  —  duty 
I  unmanufacturtM 
I  7/4toy/o  per  lb, 
JMaryland  Sl  Ouio. 
pur  lb.  bend    .. 

Viigin'aleat. 

Keiiiucky  leal    ,, 

[Lalakia 

jtlavuna,,  ..  .. 
!  vlunila 

Cigars,  duty  10/6 
per  lb. 

rimber— Wood. 
Pitch  Fine    , ,     . . 

lildldU    IcrtK 

Turpentine- 
American  Spot  . . 

I  Copra— per  ton 

1  Malabar        ..     .. 

Ceyion 

F.M.S.  Singapore 
P.M.    Straits      .. 


nora. 
nom. 
nom. 
nom. 
32  6 
29    6 

i     s.  d. 

nom. 

^29i-;C28S 

nom. 


jC33o 
£331 
£333 
nom. 


nom 

£"9-jfi23 

£"147 
£i\o-iiq\ 


£5S-£63 

£71 

£t6 

£60 
£67-£93 

^l7i 

i/8| 


3i 


nom. 
nom. 

nom. 
nom. 
32  6 
29  6 

£    9.  d. 
nom. 

i:29i-£m 

nom. 


£i'9 
£320 
£3H 
nom. 


nom, 

(ii9-£i23 

£H9 

£IIO-II0j 


/:5S-;f63 
£.71 
£66 

ceo 

£(>7-£95 
I/8.J 


£29-' "£30 


nom. 
0  8—2 
0  7 — 0  I 
2  0—5    t 
1661 

nom. 

2/  upds. 


300;— 40) 
380;— 700/ 

124/5 


46  0 
46  0 
45  15 
45  10 


29  15    o 

f.i)-io£30 


nom. 
08-2    1 

0  7  -n  II 
2  .1  -5    c 

1  (J     6     f 
nom. 

2/  upds. 


ir»(—  400/ 
jSj/—  700/ 


124; 


46  0 
46  0 
■15  '-5 

45  '0 


I 

L 


to  fine,  84s,  6d,  to  88s. ;  St,  Vincent,  85s.  to  89s,  ;  good  to  fine 
West  Coast  African,  68s,  to  70s.  Of  the  latter,  i,iio  bags  were 
cleared  out  of  total  of  10,204  bags. 

Rice  firm,  with  a  good  demand.     Beans  and  peas  unchanged. 

Hemp  —East  India  quiet  and  nominal.  Manila  receipts  last 
week,  21,700  bales. 

Shellac— Market  nominal,  with  trade  of  a  retail  character. 

Rubber,  after  being  quiet  and  easier,  became  steadier.  Planta- 
tion crepe,  spot,  sold,  2s.  sjd.  to  2s.  2jd.  and  2s.  3id.  ;  March, 
23.  3jd.  to  2S.  3jd.  and  2s.  4d, ;  April-June, '2s.  jd.  to  2s.  4jd.  and 
again  2s.  jd.  Ribbed  standard  smoked  sheet,  spot,  sold,  2s.  3d.  to 
2i.  u^d.  and2s.  3d      Fine  hard  Para,  spot,  buyers,  2s.  6Jd. 

Cuk:;  (.Mark  Lane). — There  was  only  a  moderate  attendance  at 


market  this  week,  dealings  being  confined  to  narrow  limits,  but 
prices  maintained  a  firm  level  or  all  cereals.  Wheat— English 
whites  and  reds,  quoted,  75s.  6d,  per  504  lbs.  Of  imported 
descrip  ions,  Australian,  83s,  6d.  to  84s,  3d.  ;  La  Plata,  81s,  6d.  to 
823,  ;  No.  I  Northern  Manitoba,  8is.  gd.  to  82s,  3d  •  No  2  hard 
vvinter  803,  to  80s.  8d„  all  landed,  per  496  lbs.  Flour-English 
(C.K.),  44s.  3d,  per  sack  ex  mill;  and  Canadian  export  51s  gd 
per  280  lbs.  ex  warehouse.  Barley  scarce.  English,  62s,  od  ■  and 
cahfornian,  93s,  per  448  lbs,  Oats  firm.  English,  46s.  3d',  per 
336  lbs.  ;  and  American  white  clipped,  6is.  to  62s.  per  320  lbs 
landed.     Maize  remains  largely  nominal,  ' 

CoTTO.x  (from  our  Manchester  correspondent),— The  difficulties 
in  carrying  on  the  Lancashire  cotton  industry  are  increasing.  la 
ordinary  times  about  80  per  cent,  of  the  production  of  the  spindles 
and  looms  is  for  foreign  markets,  and  owing  to  the  shipping  outlook 
becoming  more  discouraging  there  are  tears  of  a  larger  amount 
of  maciiinery  being  compelled  to  stand  idle.  On  Thursday 
the  members  of  the  Cotton  Control  Board  had  an  interview 
with  the  Shipping  Qontrollei  in  London,  when,  it  is  under- 
stood, the  position  of  affairs  was  fully  discussed.  Owing 
to  the  smaller  consumption,  stocks  of  raw  cotton  in  this 
country  have  recently  increased,  but  it  is  reported  that  imports 
during  the  next  few  months  will  be  on  a  very  small  scale.  At  the 
present  time  owners  of  mills  engaged  on  American  cotton  are  only 
allowed  to  work  60  per  cent,  of  their  machinery,  whilst  owners  of 
looms  can  run  up  to  70  per  cent,  of  their  production.  It  is  feared 
that  at  an  early  date  the  output  will  have  to  be  further  reduced. 
In  addition  to  less  tonnage  being  available  for  bringing  raw  cotton 
from  the  United  States,  more  irregularity  is  now  showing  itself  in 
sailings  to  our  markets  for  manufactured  goods. 


DIVIDENDS     ANNOUNCED. 

Astlcy  and  Tyldesley  Collieries.— 15s.  on  fully-paid  shares 
and  I2S.  per  share  on  the  partly  paid 

Cleator  and  Workington  Junction  Railway  Co.— Final  on 
ordinary  stock  2  per  cent.  ;    /:779  forward. 

J.  and  r.  Coats.— Qu.irterly  :— 5  per  rent,  on  preferred  ordi- 
nary stock  and  is.  6d.  per  share  on  ordinary  shares,  both  less 
tax. 

Derby  Gas  Light  and  Coke  Co.— Standard  rate  on  consoli- 
dated stock  at  rate  of  5  per  cent,  per  annum  for  half-year  ended 
December  31,  with  an  additional  i  per  cent,  for  whole  year, 
making  vj  per  cent.,  less  tax,  the  same  as  for  1916. 

Dominion  Bank  Canada. — Usual  quarterly  3  per  cent.,  pay- 
able on  April  i, 

Didcot,  Newbury,  and  Southampton  Railway  Co,— 2J  per 
cent,   interest  on  3  per  cent,   debenture  stock  for  year   1917. 

East  Indian  Coal  Co.— Rate  of  8  per  cent.,  less  tax,  for  half- 
year  ended  October  31. 

Electro  Bleach  and  By-Products. — Further  interim  on  account 
of  1917  of   10  per  cent.  (less  tax),  against  7  per  cent. 

Harrods  Stores  Founders'  Shares  Co. — 38^  per  cent.,  less  tax, 
making  43J  per  cent,  for  the  year  ended  January  31,  against  35 
per  cent. 

Ilerne  Bay  Water  Works  Co. — At  rate  of  ;f  4  per  cent,  per 
annum  for  half-year  to  December  31  ;  the  same. 

International  Nickel  Co.— $1  (4  per  cent.)  on  common  stock, 
payable  March  i. 

International  Investment  Trust. — At  rate  of  4  per  cent,  per 
annum  on  deferred  stock  for  half-year  ended  January  31, 
making  3J  per  cent,  for  year,  the  same  as  a  year  ago. 

ICramat  Pulai. — Further  interim  for  1917  of  is.  per  share 
(less  tax),   payable  on   March  15. 

Motor  ITnion  Insurance  Co. — Interim  of  22J  per  cent.,  the 
same  as  a  year  ago,  payable  on  February  28. 

North  Anantapur  Gold  Mines. — At  rate  of  20  per  cent,  per 
annum  (less  tax)  on  preference  shares  for  the  half-year  to  De- 
cember 31,  the  same  as  a  year  ago. 

North  Broken  Hill. — No.  47  of  2s.  per  share,  less  tax. 
Nondydroog  Co. — Balance  for  1917  of  is.  2d.  per  share,  less 
tax,  pay-able  on  March  21,  making  a  total  distribution  for  year 
of  js.  4d.  per  share,  against  3s.  6d. 

New  Sharlston  Collieries. — Final  for  1917  of  15s.  per  share, 
less  tax,  making  5  per  cent,  for  year,  subject  to  sanction  of 
Controller  of  Coal  Mines. 

Powell  Duffryn  Steam  Coal. — Final  of  10  per  cent.,  tax  free, 
on  ordinary  shares,  making  20  per  cent,   for  year  1917. 

Rambutan,  Ltd. — 8d.  per  share,  less  tax;  the  same  as  a  year 

ago. 

Rhondda  and  Swansea  Bay  Railway. — At  rate~of  3  per  cent. 
on  ordinary  capital,  making  5^  per  cent,  for  year,  against  5  per 
cent. 

United  Alkali  Co. — 23.  per  share,  less  tax,  on  ordinary  shares, 
being  the  same  rate  as  a  year  ago. 

Venesta,  Ltd. — Final  on  ordinary  shares  of  16  per  cent,  (less 
tax),  making  20  per  cent,  for  the  year  ended  June  30, 

West  Surrey  Water  Co.— Maximum  at  rate  of  7  per  cent,  per 
annum  on  ordinary  /'lo  shares,  Acts  of  1877,  18S8,  and  iqoi  ; 
and  at  rate  of  10  per  cent,  per  annum  on  the  shares,  Act  of 
1869. 

Weston-super-Mare  Gaslight  Co. — Maximum  5  per  cent,  on 
ordinary  stock  for  half-year  to  December  31, 


BOOKS    RECEIVED. 


History  of  Banking  in  Scotland.  By  Andrew  William  Kerr, 
Third  edition.  Publishers  :  A.  and  C.  Black,  4,  s.  6'  ^<*° 
Square,  London.     Price  los.  6d.  nett. 


J04 


^be  investors  IReview* 


February  22,  1918. 


Insurance    News. 

An  iiileresling  s\vp  lias  been  taken  by  the  Friends' 
Provident  Institution,  a  well-known  and  wealthy  in- 
surance office  dating  from  1832,  and  during  all  its 
existence  it  has  been  conducted  by  and  in  the  interests 
of  the  Society  of  Friends.  It  has  now  decided  to  absorb 
.the  Century  Insurance  Co.,  Ltd.,  which  -was  founded 
as  recently  as  1885  as  the  Sickness  and  .Accident  Assur- 
ance Asso<Mation,'  Ltd.  Hitherto  the  Friends'  Provi- 
dent Institution  has  been  a  purely  life  office,  whereas 
the  Century  Co.  has  extended  its  operations  into  almost 
^11  branches  of  insurance.  The  two  concerns  are  to  be 
worked  as  distinct  businesses,  just  as  if  the  fusion  had 
not  taken  place  ;  but  an  interchange  of  directors  is  to 
be  made,  and  full  ad\  antage  will  be  taken  of  the  acqui- 
sition of  the  Century  Co.  to  secure.fire  and  other  types 
of  insurance  business.  The  Friends'  Provident  Insti- 
tution is  wealthy,  and  has  accumulated  large  reserves. 
Considering  the  length  of  its  life,  so  has  the  Century, 
whose  shares  of  ^"4  los.  each  with  los.  paid  have  been 
■bought  at  ^"6  5s.  a  share,  together  with  the  final 
<lividend  of  2S.  The  combined  reserves  of  the  two 
companies  will  be  about  ^4,750,000. 

Notwithstanding  war  conditions,  the  busines.s  of  the 
Marine  and  General  Mutual  Life  .Assurance  Society  still 
shows  some  considerable  progress.      During   191 7  the 
nett     new     life     assurances     effected      amounted      to 
;^202,554,  as  contrasted  with  ^209,277   in    1916,   the 
directors  naturally  having  been  very  careful  in   consi- 
dering propo.sals  for  new  assurance  where  war  risk  is 
likely  to  be  involved  immediately  or  soon.       The  pre- 
mium  income    increased  by    ;^3.944   to   ;6i7S>945i   o"" 
about    the    usual    yearly    average.      Claims  by    death 
amounted,  with  bonus  additions,  to  ;^87,588,  averag- 
ing about  ;^'50o  per  member,  whereas  the  average  for 
1916  was  ^'6ii.      Although  62  claims  were  in  respect 
of  sailors  and  soldiers  killed,  the  total  was  well  within 
the  expectation.      Expenses  of  management  and  com- 
missions were  less  in  ratio  to  the  premium  income  than 
in   the  previous  year,   and   the   surplus   on   the   year's 
working  was   £"58,421,   thereby    increasing  the   assur- 
ance fund  to  ;^'2,239,si2.      British  Government  securi- 
ties, which  last  year  stood  at  ;£^i88,6oo,  now  stand  at 
over  ;^430,ooo.     In  reference  to  the  question  of  depre- 
ciation, the  chairman  at  the  meeting  hinted  that  it  was 
quite  possible  that  at  the  next  valuation  on  December 
31,  1919,  the  amount  required  will  oblige  the  directors 
to  take  the  bulk  of  the  profits  in  meeting  it. 
-   The   North   British  and   Mercantile  Insurance   Com- 
pany announces  a  novel  scheme  w-hich  should  do  much 
to  encourage  the  purchase  of  National  War  Bonds  and 
of  annuities.      Specially    attractive    annuity    rates    are 
offered  to  purchasers  of  War    Bonds   who  can    under 
the   company's   plan  secure  not  only   the   5   per   cent, 
interest  payable  by  the  Government,  but  an  additional 
income  of  a  very  substantial  amount.      For  each  ;6ioo 
War  Bond  the  company  guarantee  an  income  for  life 
in   the  case  of   a  male    life    of    50,     for  example,   of 
j£y  los.  6d.,  the  corresponding  rate  for  a  female  life 
being  ^£7  is.      At  age  70  the  rates  would  be  ;^i3  14s. 
and  ;^i2  4s.  8d.  respectively.      Holders  of  War  Bonds 
in  need  of  an  immediate  increase  of  income  would  be 
well  advised  to  apply  to  the  company  for  rates  and  full 
particulars. 

An  unusually  large  number  of  fires  occurred  in 
Canada  and  the  United  States  during  January,  494  out- 
breaks involving  lo.sses  of  ;^20,ooo  or  more,  as  com- 
pared with  292  in  December  and  303  in  January  last 
year.  The  cost  of  the  month's  fires  is  estimated  at 
;^7, 515,000,  as  compared  with  ;^7, 286,000  for  the 
corresponding  month,  the  heavy  cost  being  attributed 
mainly  to  severe  weather  conditions  and  the  risks  in- 
curred in  expediting  war  work. 

For  the  year  just  ended  the  National  Boiler  and 
•General  Insurance  Co. 's  dividend  is  again  made  up  to 
25s.  a  share,  the  rate  of  distribution  having  steadily 
risen  during  the  past  eight  years  from  14s.  a  share, 
which  was  the  rate  paid  for  the  year~ended  June  30, 
1910. 

Satisfactory  progress  is  again  shown  by  the  report 
of  the  Provident  Association  of  London,  and  as  the  re- 
sult oT  the  past  year's  trading  the  invested  funds  were 


increased  by  £.159,985  to  £6,822,535,  this  increase 
following  one  of  £207,782  in  the  previous  year.  Pay- 
ments to  policy-holders  and  certificate-fiolders,  includ- 
ing war  claims,  reached  the  record  figure  of  £331,793, 
an  increase  of  £47,785  over  the  total  for  1916.  There 
was  an  increase  of  £^3,459  to  £398,234  in  the  premium 
income,  and  of  £20,847  to  £231,611  in  the  nett  interest 
receipts.  The  greater  part  of  the  sum  collected  in 
premiums  was  in  montlHy  payments  averaging  about 

IDS. 

Presiding  at  the  annual  meeting  of  the  Scottish  Life 
Assurance  Co.,  the  Duke  of  AthoU  said  he  wished  to 
pay  a  tribute  to  the  services  rendered  during  the  war 
by  the  life  assurance  institutions  of  this  country,  ser- 
vices which  had  not  yet  been  so  fully  recognised  as 
they  should  be.  Their  contributions  in  the  form  of  men 
and  money  had  been  most  gratifying,  but  perhaps 
their  greatest  part  had  been  in  affording  financial  pro- 
tection to  the  families  of  those  who  had  given  their 
lives  for  their  country,  and  in  this  direction  the  Scottish 
Life  had  already  provided   £100,000. 


American  Business  Notes. 

The    latest     issue    of    ihc     New    York     Commercial 
Cliroiiicle  which  has  come  to  hand  contains  its  valuable 
annual  summary  of  ^he  gold  production  of  the  world  in 
1917.     Unfortunately   our   space   is   now   so   restricted 
that  we  can  only  give  the  merest  summary  of  the  figures 
of  production   in  this  week's  number.     The  past  year 
again  showed  a  reduction  in  the  value  of  gold  won, 
which     is     estimated     to     have     been     worth     only 
£88,027,011.     This  is  £^5,797.-363  less  than  the  pro- 
duction of  1916,  and  the  smallest  total  since  1906.     The 
reduction  in  ounces  was   1,364,792,  and  the  countries 
that  showed  the  greatest  diminutions  were  Australia, 
Africa,   the   United   States,   and  Russia.     Canada  also 
yielded  less,  and  so  did  Mexico,  but  the  decline  was  un- 
important, especially  in  Mexico,  whose  output  of  gold 
only   fell  off  no  more   than  about   12,000  ozs.   on   the 
vear,  whereas  the  decline  in  the  African  production  was 
nearly    098,000   ozs.,    and    in     the     .Australian     nearly 
205,000"  czs.     The  United   States  production   also  fell 
ofif  393,000  ozs.     It  was  quite  to  be  expected  that  there 
should  be  a  decline  during  the  war,  and  the  astonishing 
thing  is  that  countries  like  Russia  and  Mexico  should 
have  been  able  to  produce  so  much.  .  Most  of  the  Rus- 
sian gold  mines,  however,  are  in  Siberia,  and  it  may 
have   been   possible  to  export    the    metal    \\&    Vladi- 
vostock. 

In  the  past  calendar  year  exports    of    merchandise 
from      the      United      States      rose      to     a      value     of 
£1,245,350,000,      while      imports     were     valued      at 
£590,500,000.     There  was  thus  an  enormous  balance 
due  to  the  United  States  on  the  year's  commerce.     On 
the  mere  merchandise  alone,  in  fact,  it  was  upwards  of 
£650,000,000.      To  adjust  the  accounts  more  closely, 
however,  the  gold  movements  must  be  taken  into  the 
account,  and  these  amounted  to  £74,377,000  exported 
and  £107,571,000  imported.     Adding  these  figures  to 
the  merchandise   totals,  we   get   an   aggregate  cxpoit 
value     of     £1,391,727,000,      and       an      import      of 
£696,071,000.     This    brings   down    the   traile   balance 
du<-  to  America  on  last  year's  business  with  countries 
abroad  to  £623,656,000.     We  fear  the  current  year's 
l>alance  will  not  be  so  largely  on  the  export  side,  but 
these  totals  show  how  enormous  the   influence  of  the 
war  has  been  on  the  prosperity  of  Ameilca.     And  the 
ITohenzollern  Empire  has  no  part  whatever  in  this  pro- 
sperity, probably  never  again  will  have  much  part. 
"  Testimony    of    another    kind    to  that    prosperity    is 
afforded  by  the  report  of  the  United  States  Steel  Cor- 
poration for  the  quarter  ended   December  31  last.     It 
reveals  an  overwhelming  apjDearance  of  wealth,  for  after 
making  up  the  dividend  on  the  common  stock  to  16  per 
cent,    for  the    nine  months   expired  of   the  company's 
trading  year,  and  after  setting  aside  $235,000,000  to 
meet  excess  profits  taxes  and  war  income-tax,  as  well 
as  after  spending  $55,000,000  on   additional  property 
and     new    plants,   &c.,   the    balance    left   to  carry   to 
the  current  quarter  is  $52,766,000.     The  corporation, 
in  short,  appears  to  have  difliculty  in  stuffing  away  or 
otherwise  dissipating  its  profits. 


February  23,  1918. 


XLbe  5nve6tor6'  TRevtew. 


205 


PUBLIC     INCOME     AND    EXPENDITURE. 

The   following   are   the   receipts   into   and    issues   out     of    the 
Exchequer  between  April  1,  1917,  and  February  i6,  1918: — 


Estimate 

for  the 

Year 

1917-1918. 

(See  note.) 


I  Total  Receipts 
I       into  the 
jExchequerfrom 
April  I,  igi7,  to 
(   Feb.  16,  1918. 


70,730,000 

34,950,000 

29,000,000 

8,000,000 

2,600,000 


224,000,000 
200,000,000 

400,000 
33,700,000 

600,000 

7,500,000 
27,100.000 


638,600,000 


I 


Balances   in    Exchequer   on 

April  I— Bank  of  England  . . 

Bank  of  Ireland    . . 

Revenue. 

Customs 

Excise 

Estate,  &c.,  Duties 

Stamps 

Land  Tax \ 

House  Duty    f 

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Duties,  &c 

L.and  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    frons.    Sundry 

Loans,  &c 

Miscellaneous 

Hevenue  

Total,  including  Balance  .. 

Other  Receipts. 

Repayment  of  Advances  for  Bullion   

Repayment  of  Advances  for  Interest  on 
Exchequer  Bonds  under  the  Capital  Expen- 
diture (Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

"Under  Public  Bnihiings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For  Treasury  Bills  (tor  supply)   

For  Exchequer  Bonds  under  the  Capital 
Expenditure  (Money)  Act,  1904  

For  Exchequer  Bonds  under  the  Cunard 
Agreement  ( Money)  Act,  1904  

For  4^  per  Cent.  War  Loan,  1925-1945 

For  5  per  Cent,  Exchequer  Bonds,  igrg 

For  5  per  Cent.  Exchequer  Bonds,  1920    

For  5  per  Cent.  Ejtchequer  Bonds,  1921  .... 

For  5  per  Cent.  Exchequer  Bonds,  1922   

For  6  per  Cent.  Exchequer  i-;onds,  1920    .... 

For  War  Expenditure  Certificates    

For  Wat  Savings  Certificates 

For  other  Debt  created  under  the  War  Loan 
Acts,  1914-1917 

For  4  per  Cent.  War  Loan,  i929-:942,  and  5  per 
Cent.  War  Loan,  1929-1947    

For  National  War  Bonds    

Hast  Africa  Protectorate  Loan  :  Repayments 
on  account  of  Principal  and  Interest 

Cunari  Loan  :  Repayment  on  a/c.  of  Principal 

Suez  Canal  Drawn  Shares , 

China  Inilemnity   

Temporary  Advances— Ways  &  Means  (includ- 
ing Treasury  Bills  ^345,000,000  in  1916-1917) 
Total 


25,209,947 
1,225,912 


26,435.859 


61, 72 r, 000 
33,667,000 
27,481,000 
6,949,000 

1,780,000 

1  166,996,000 
I  183,952,000 
I  55^1,000 

30,350,000 
560,000 


1.925.975 
47.87«,733 


56^,810,708 


590,246,567 
2,280,000 


169,818 
roo,coo 
68,000 


394.500 
2,486,022,000 


1,300,000 


82,270,400 
48,000 

45,900,000 

626,337,138 

168,082.6:0 
*363,964,ooo 

5.940 
130,000 
12,797 

876,103,500 


Total  Receipts 

into  the 

Exchequer  from 

April  I,  1916,  to 

Feb.  17,  1917. 


35,111,065 
463.94' 


25.575.006 


60,914,000 

49,720,000 

27,314,000 

6,551,00a 

1,750,000 

139.550.000 

114,467,000 

371,000 

29,000,000 

531,000 

5.>54.238 
12,402,236 


447.723.474 


5,243,43^,280 


473,298,480 


3,3ro,oco 


91.370 
210,000 

l60,003 

8,8  »4 

8,000 

74,600 

1,766,107,000 

3,087,600 


424 

34,262,604 
84,140,469 
62,495  527 

160,951,700 
29.878,500 
55,050,000 

244.904.292 
323,850,000 


5.940 

130,000 

JO,795 

400,000 

865,703.000 


4,108,139,125 


Note.— Estimate  as  in  House  of  Commons  Paper  No.  75  of  1917,  and  Sup- 
plementary Grants. 
'Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account. 


Expenditure 
and  other  issubs. 


Estimate  for 
the  Year 

igr7'i8. 
(See  note.) 


,  Total  Issues 
|out  of  the  Ex- 
(chequertomeet 
[payments  from 
jApri)  I,  1917,  to 
(    Feb.  J 6   1918. 


Expenditure.  £ 

Permanent  Charge  of  Debt  .,  17,000,000 

Interest,  &c.,  on  War  Debt ..         194,500,000 
Payments  to  Local  Taxation 

Accounts,  &c 9,700,000 

Other      Consolidated      Fund 

Services    i  ,695,000 

Supply  Services    2.543.830.000 

Expenditure    2,765.725.000 

Other  Issues.  | 

For  Advances  for  Bullion  | 

F«r    Advances    for    Interest    on    Exchequerj 

Bonds    under    the     Capital     Expenditure] 

(Money)  Act,  1904    ' 

Under  Telegraph  (Money)  Act,  1913 j 

Under  Post  Office  (London)  Railway  Act,  19131 

Under  Military  Works  Acts,  1897  to  1903 ! 

Under  Public  Buildings  Expenses  Act,  1903  .  .1 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supply 1 

For    Exchequer    Bonds    under    the    Ca;  iial 

Expenditure  (Money)  Act,  1904    1 

For  Exchequer  Bcaids  under  the  Cunard  .\gre«-; 

ment  (Money)  Act,  1904 ! 

For  War  Loans,  Exchequer  Bonds,  &c.,underj 

Section  34  of  Finance  Act,  1917  

For  War  Expenditure  Certificates  under  Wart 

Loan  Act,  igi6    ....1 

For  other  Debt  under  the  War  Loan  Acts,; 

I9W  to  1917... ;•••:.•. I 

For  Depreciation  tund  under  the    Finance' 

Act,  1917 ! 

Old     Sinking    Fund,     1907-8,    issued    under; 

Section  9  of  the  Finance  Act,  1908 | 

Old    Sinking    Fund,    1910-11,    issued    under; 

the  Finance  Act,  1911,  Section  16  (i)  (b)  .. 
Old  Sinking  Funds,  1911-12  and  1913-14,  issued 

under    the    Anglo- Persian    Oil    Company 

(Acquisition  of  Capital)  Act,  1914 

East  Africa  Protectorate  Loan  Repayments- 
Issued  to  reduce   Debt  under  the  Finance 

Act,  191 1    

Cunard  Loan  Repayts.— Issued  to  reduce  Debt 

under  the  Cunard  Agreemt.  (Money)  Act,  1904 
Suez  Canal  Drawn  Snares— Issued  to  reduce 

Debt  under  the  Finance  Act,  i8gS 1 

China     Indemnity — Issued    to    reduce    Debt} 

under  the  Finance  Act,  igo5    

Temporary  Advances  repaid — Ways  and  Means 

(incldg.  Treasury  Bills  ^^344,912,000  in  1916-17) 


Total  Issues 
out  of  the   Ex- 
chequer to  meet 
payments   from 
April  1, 1916,  to 

Feb.  17, 1917. 


17,006,991 

!5S,888,7I0 

7,IJ0,566 

1,508,098 
2,161,805,687 


a,346,330.°5» 


:, 520,000 

169,818 
115,000 
95,000 


394,500 
t:i894,930,ooo 


1,300,000 

13,424,608 

151,400 

80,929,570 

30,139,220 

IO,COD 

20,000 

949,000 

5.940 

130,000 

12,797 

855,849,000 


I      IQ18.     !     1917. 
I  Feb.  16.  '    Feb.  17. 
Balances  in  Exchequer —  \        £       \       £         \ 

Bank  of  England I  13,623,124'  22,166,309! 

Bank  of  Ireland i    2,436,251!    2,581 ,587|_ 

Total 


5.227,375,905 


16,059.375 


5,243.435,280 


T 

18,925,308 

103,916,152 

7.023,772 

1.749.839 
1,731,624,722 


1,863,239,794 


3.430,»oo 


91.370 

230,000 

200,000 

8,008 

8,000 

98,900 

1,522,721,000 

3.087,600 


975,705 
3,000,000 
9.651.957 

94,000 
53.160 

250,000 

5.940 

130,000 

10,795 

400,000 

675.705.°«o 


4.083.391,229 


24.747.896 


4,108,139,125 


Memo.— Treasury  Bills  outstanding  on  Feb.  16, 1918 »£i,o54,g85,ooo 

*  Includes  £196,000,  the  proceeds  of  which  were  not  carried  to  the  Kxchequer 

within  the  period  of  the  account,  besides  an  amount  (not  yet  ascertained  and 

brousht  to  account)  for  Bills  tendered  as  subscription  to  National  War  Bonds. 
+  Includes  part  payment  of  Bills  and  Certificates  tendered  as  subscriptions 

to  National  War  Bonds 


Income-Tax  Guides  and  Lessons. 

I. 

With  an  income-tax  which  has  reached  a  standard  or  normal 
rate  of  5s.  per  £,  it  is  not  only  a  right,  but  a  duty,  of  prudent 
men  and  women  to  make  sure,  on  the  one  hand,  that  they  do 
not  wrong  their  country  in  a  time  of  peril  by  land  and  sea,  but 
also,  on  the  other  hand,  that  they  hus'bai'.d  their  resources  and 
commit  no  waste,  whether  in  income-tax  or  in  any  other  direc- 
tion. To  man)-  readers  many  of  the  matters  mentioned  in  this  and 
the  subsequent  articles  will  be  at  best  reminders  only,  but 
useful  as  such  ;  to  others  they  will  convey  new  lessons. 

Some  claims  for  repayments  or  allowances  must  be  made 
annually,  but  ordinary  claims  for  exemption  or  abatement  or 
rate  relief  are  in  time  if  made  within  three  years  of  the  expiry 
of  the  year  of  assessment.  That  means  that  one  can  usually 
deal  with  four  years  together  if  necessary.  That  at  present 
would  carry  back  to  April  6,  1914,  conversing  the  fo!J.r  years 
1914-15,  1915-16,  1916-17,  and  1917-18.  This  shows  that  the 
matter  presses,  and  will  soon  be  urgent,  for  any  claims  ap- 
plicable to  the  tax  year  April,  1914,  to  April,  1915,  will  be  lost 
altogether  if  not  .sent  in  before  April  5  of  this  year.  The  great 
thing  is  to  siend  in  the  claim,  and  to  claim,  generally,  all 
relief  to  which  you  are  legally  entitled.  All  necessary  certi- 
ficates and  vouchers  may  follow,  so  even  if  some  of  these  be 
missing,  you  should  not  delay  if  the  time  is  ijctting  close,  but 
send  in  the  claim  and  follow  up  with  the  certificates  when  you 
get  them.  But,  indeed,  most  people  will  prefer  to  send  in 
claims  each  year,  and  so  avoid  being  kept  out  of  their  money. 
Just  for  this  reason  half-yearly  claims  .are  now  perfn'tted.  But 
it  is  still  better  to  arrange  with  the  Surveyor  of  Taxes  to  avoid 
making  payment  of  more  than  is  truly  due.  This  is  always 
poiwible  when  there  is  any  direct  assessment  of  tax,  whether 
on  new  investments,  rents,  or  the  profits  of  a  bus'ness.  This 
same  arrangement  can  also  be  made  in  the  case  of  many 
Government  stocks  from  which  tax  would,  in  ordinary  course, 
be  deducted,  and  also  in  the  case  of  annuities  paygible  by 
insurance   companias. 

Take  great  care  of  all  certificates  of  deduction  of  tax.  in- 
cluding the  "  top  "  parts  of  dividend  warrants,  for  nowaday."?, 
when  clerical  staffs  are  so  depleted,  companies  threaten  to 
charge  2s.   6d.   for  each  duplicate  certificate. 


Calculation   of   Income. 

Income-tax  is  charged  on  what  is  called  a  "  statutory  in- 
come." That  may,  in  many  cases,  be  quite  different  from 
the  actual  income.  This  shows  chiefly  in  the  case  of  incomes 
from  businesses.  Even  the  words  "  actual  income,"  when 
used  for  tax  purposes,  do  not  have  their  ordiniry  meaning. 
They  only  mean  that  any  avcrag-e  rule  is  disregarded,  but  still 
all  the  other  tax  rules  apply. 

Of  course,  it  is  always  the  individual's  income.  Thus,  if 
two  sisters  live  togethei,  each  is  treated  by  herself  alone,  so 
that  both  may  be  e.xenipt,  though,  if  the  income  were  massed, 
tax  would  be  payable.  Again,  though  the  income  of  a  trust 
fund  amounts  to  some  thousands  a  year,  that  has,  in  the  ordi- 
nary case,  no  bearing  on  the  ultimate  liabiUty,  which  is  mea- 
sured by  the  income  position  of  each  beneficiary  *parately. 
Another  instance  is  that  of  partners  in  a  firm;  the  tax  is 
charged  on  the  firm,  but  in  fixingf  the  amount  the  whole  income 
position  of  each  partner  (including  his  wife)  is  regarded.  It 
may  thus  happen  that  a  junior  partner  with  a  small  share  'but 
a  rich  wife  is  liable  for  a  higher  rate  of  tax  than  the  senior 
partner.  Again,  two  partners  may  be  equally  interested  in 
profits,  but  the  whole  capital  may  be  provided  by  one  of  them, 
and  the  interest  on  that  capital  is  paid  to  him,  but  the  tax  on 
it  is  charged  to  the  firm.  The  reason  is  that  interest  on 
partners'  capital  is  not  a  deduction  for  tax  purposes.  It 
follows  that  much  care  is  required  in  splitting  up  the  tax  pay- 
ment among  the  different  partners. 

Husband  and  Wife. 

The  one  exception  to  this  is  the  c.nse  of  husrband  and  wife, 
who  are  treated  as  one,  but  with  the  result  of  assessing  the 
husband  on  the  income  of  both  taken  together,  and  leading  to 
interesting  tax  questioois  in  the  first  year  of  ihe  marriage  of  a 
lady  with  an  income  of  her  own  and  in  the  first  year  of 
widowhoood.  But  there  is  a  .s.uib- exception  when  bo-th  husband 
and  wife  are  engaged  in  separate  businesses,  and  the  whole 
incomes  of  both  taken  together  do  not  exceed  ^500.  In  that 
case,  while  the  husband  pays  the  whole  tax  it  is  ca.lcu.lated 
as  on  two  separate  incomes  .so  that  each  may  have  the  benefit 
of  exemption  and  abatement.  This,  however,  applies  only  to 
the  wife's  earned  income ;  her  unearned  income  must  alway-! 
be  reckoned  as  part  of  her  husband's  income. 


206 


^be  Jnvcatow'  IRevtew. 


I'LBRLARV  23,    I918, 


The  TiiKEii  Veahs'  Aveuaok. 
Most  bus-iness  incomes  aie  assessed  on  the  average  of  the  jrt.->i 
three  completed  years.  This  extends  to  clerks  and  other  em- 
ployees of  prCTate  businesses,  and  in  oertai.n  districts  it  is  also 
extended  to  the  subordinate  eniiployees  of  limitod  companies. 
At  ith«  present  time,  in  view  of  war  bonuses,  this  is  important 
to  be  remembered  by  employees,  for,  with  rising  emoluments, 
the  average,  cuf  course,  tells  in  their  favour.  The  average  rule 
suffers  a  great  many  qoialifications  in  favour  of  the  taxpayer, 
and  these  we  mention  briefly. 

1.  New  Business. — A  new  business  is  taxed  for  the  first  year 
on  an  estimate,  or,  more  commonly,  on  the  result  when  ascer- 
tained at  the  eoid  of  the  yi  ar ;  in  the  second  yesur,  on  the  first 
year's  figure ;  in  the  third  year,  on  the  average  of  the  first  and 
second  years  ;  thereafter,  the  ordinary  rule  is  applicable.  But 
in  any  ol  the  first  four  years  the  actual  result  when  »-iscertained 
may,  if  less,  be  substituted  for  what  has  been  charged. 

2.  Discontinued  Business. — When  a  business  is  actually  dis- 
coatinued  (not  merely  transferred),  the  final  three  years  may  be 
overhauled  and  reduced  to  the  actual  results,  and  tax  recovered 
if  due;  but  it  must  be  all  the  three  years  or  none. 

3.  A  Successor  in  Business  is  subjected  to  the  average  of  the 
preceding  years,  but  he  may,  in  any  of  the  firsl  three  years, 
substitute  the  actual  result  if  he  can  show  that  reduction  of 
profits  is  due  to  a  specific  cause. 

4.  Substiiuied  Average.— li  there  is  a  diminution  of  income 
due  to  the  war,  "directly  or  indirectly"  (which  is  very  wide), 
'there  may  be  taken  by  the  taxpayer  the  average  of  the  two 
(not  three)  preceding  years  and  the  year  of  as.=essment.  But 
if  that  would  give  a  lower  figure  than  the  year's  actual  resujt, 
then  the  latter  must  be  taken. 

5.  War  Service  Ke/ie/.—ln  this  last  case,  if  the  taxpayer  is 
serving  in  the  war,  he  gets  off  with  the  year's  actual  result  if 
that  is  beitter  for  ham.  In  a  firm,  one  partner  may  get  this 
benefit  and  the  others  only  the  substituted  average. 

6.  IndividuaVs  Total  Income.— \t  an  individual  (not  a  firm) 
shows  that  his  (and  his  wife's)  actual  total  income  for  any 
year  is  more  than  10  per  cent,  less  th2,n  the  total  as.sessments. 
he  is  allowed  to  substitute  the  actual  figure.  The  bearing  of 
this  on  the  matters  dealt  with  above  may  require  careful  con- 
sideration. 

{'io  he  continncd.) 


The  Week  in  Mines. 

There  has  been  less  activity  in  the  Mining  Markets  this  week, 
and  the  tendency  has  been  generally  dull.  Kiiodesian  shares 
have  been  under  the  influence  of  the  disappointing  Gaika  de- 
velopment, and  consequently  a  great  deal  of  the  recent  advance 
has  been  lost.  Broken  Hills  have  been  bought  on  Colonial 
account,  and  Tin  shares  and  Mexican  descriptions  have  been 
supported. 

South  and  West  Africans. 
Extraordinary  heavy  rains  have  again  fallen  in  the  Transvaal 
.ind  other  parts  of  the  Union.  The  Transvaal  Clold  Mining 
Estates  report  the  flooding  of  the  Vaalhoek  and  HIandsdrift 
mmes,  and  that  crushing  operations  at  all  its  mines  are  sus- 
iiended.  The  shares  have  fallen  2s.  6d.  to  15s.,  and  Luipaard's 
Vleis,  whose  operations  have  also  been  affected  adversely  by 
the  rains,  have  been  dull  at  3s.  6d.  .Springs  have  been  on  offer, 
and  are  J^  down  at  3J,  v.'hile  Modder  B  at  8.},  Geduld  at  2  1-32. 
and  Modder  Deeps  at  7!  are  also  appreciably  lower.  South 
African  Gold  Mines  have  risen  is.  to  15s.,  and  W'it.  Townships 
13.  to  i6s.  In  the  Khodesian  section,  while  Gaikas  have  re- 
covered to  20S.,  the  rest  of  the  market  has  reacted  to  a  lower 
level.  Lonely  Reefs  have  declined  is.  cjd.  to  34s.  6d.,  and 
Tanganyika  debentures  have  fallen  ,5^  to  7J.  Diamond  shares 
have  been  steady.  Small-priced  West  African  shares  have  been 
actively  dealt  in,  but  the  public  should  leave  these  shares  alone, 
for  the  activity  is  entirely  due  to  professional  operations. 

Copper  and  Miscellaneous. 
....^^PP"  shares  are  easier;  Kio  Tintos  have  declined  \  to  64J. 
lin  .shares  have  been  active  and  firm,  on  the  high  price  realised 
for  the  metal,  which  during  the  we.ek  has  fluctuated  between 
£3'3  'OS.  and  £323  los.  per  ton.  Kintas  have  risen  J  to  2,!^, 
partly  on  the  report,  and  Tronohs  <  to  ij-|.  Dolcoaths  at 
13s.  3d.,  Geevors  at  kjs.  3d.,  South  Croftys  at  vs..  .and  East 
I  ools  at  24s.  3d.  have  been  active  and  firm.  Among  Bro]<en 
Uill  shares  Propnetarys  were  actively  bought  on  the  issue  of 
the  last  two  half-yearly  reports,  and  show  an  adv.ince  of  2s.  gd. 
ta  63s.  South  Silvers,  however,  have  declined  i  to  loj.  Rus. 
sians  naturally  show  a  furthi  r  decline ;  Russo-Asiatics  are  S 
lower  at  2J,   and  Tanalyks   5-32  lower  at   i. 

Mexican  shares  have  been  supported,  on  the  improvement  in 
the  relations  between  Mexico  and  the  United  States  and  the 
leporLs  of  increasing  activity  in  the  Southern  Republic.  Kl 
Oros  have  risen  gd.  to  9s.  3d.,  and  F.speranzas  6d,  to  qs.  3d. 
Irontmos  have  risen  sharply  to  14s.  3d.,  and  Cascv  Cobalts  are 
IS,  higher  at  8s.,  on  a  report  that  the  new  mill  is  readv  to 
start  work.  There  has  been  some  sellin?  of  Indian  shares. 
Burmas  have  declhied  iV  to  4^,  Mv.sores  -}^  to  2{|.  while 
Nundydroogs,  on  the  reduction  in  the  dividend  for  the  past  year 
from  3s.  6d.  to  3s.  4d.  per  share,  have  eased  to  26s. 


deducting  ;^' 16,897  for  depreciation,  ^^25,222  for  debenture  in- 
terest, a«id  /'26,5oo  for  sinking  fund.  J  here  was  expended  in 
construction  ;6236,997,  of  which  the  Newcastle  Works  accounted 
for  ;t235,s63.  Liquid  assets  amounted  to  ;f  707,292,  exclusive 
of  the  200,000  Smelters'  Prfjprietajcy  shares.  Profit  and  loss 
account  shows  a  credit  of  ;,f  1,560,185.  At  Broken  Hill  93,717 
tons  of  ore  were  mined.  Kxpioratory  work  disclosed  nothing. 
There  were  treated  83,951  tons,  which  produced  14,712  tons  of 
lead  concentrates.  The  zinc  concentration  plant  produced 
33,956  tons  of  zinc  concentrates,  assaying  about  46  per  cent, 
zinc.  Slime  flotation  plant  produced  8,171  tons  of  lead  con- 
centrates, and  18,935  ***"*  ^^  ^'"'^  concentrates.  The  report  for 
the  half-year  ended  November  30  shows  a  nett  profit  of 
^290,881,  after  deducting  depreciation  ;^i6,25i,  debenture  in- 
terest ^26,582,  and  sinking  fund  ^'26,500.  Since  a  strike  in 
August  caused  a  suspension  of  work  for  several  weeks  it  is 
clear  that  the  increase  in  profits  was  relatively  much  larger  than 
is  actually  shown.  Expenditure  on  construction  amounted  to 
;i' 199,951,  of  which  the  Newcastle  Iron  and  Steel  Works 
absorbed  ^195,180.  In  view  of  the  fact  that  the  credit  at  profit 
and  loss  account  had  been  increased  to  ;f  1,734,965,  the  directors 
decided  to  transfer  j^  1,500,000  to  reserve  fund,  making  the 
latter  ^1,875,000,  and  the  credit  at  profit  and  loss  ;f234,965. 
Liquid  assets  amounted  to  ^821,000.  Owing  to  the  labour 
troubles  only  four  months'  work  was  done  at  Broken  Hill.  The 
output  was  55,316  tons  of  ore,  being  only  half  of  that  for  the 
corresponding  period  of  1916,  and  costs  were  consequently  in- 
creased. There  were  produced  7,685  tons  of  lead  concentrates 
from  48,986  tons  of  ore,  and  tailings  yielded  1,43;  tons  of  lead 
concentrates.  Zinc  plant  produced  21,960  tons  of  zinc  concen- 
trates, and  slime  plant  produced  5,592  tons  of  lead  concentrates 
and  13,407  tons  of  zinc  concentrates.  Great  activity  prevails  at 
the  Newcastle  Steel  Works,  where  important  extensions  are 
being  carried  out.  There  were  produced  during  the  half-year 
41,351  tons  of  pig-iron,  and  52,878  tons  of  steel ;  also  23,398  tons 
of  steel  rails  and  11,076  tons  of  structural  steel.  The  18-inch 
mill  produced  7,461  tons;  the  12-inch  and  8-inch  mills  started 
in  Jul}'  and  produced  9S8  tons  of  ;nerchant  bars. 

East  Indian  Co.\l. — During  the  half-year  ended  October  31 
a  profit  of  .if  9,607.  A  dividend  of  8  per  cent,  for  the  half-year 
is  again  paid,  and  /i,i45,  against  .^1,138,  is  carried  forward. 
The  output  rose  from  276^634  tons  to  313,063  tons,  but  costs  of 
production  continued  to  advance  al.so. 

Broken  Hill  Soith  Silver. — The  report  for  the  half-year 
ended  December  31  shows  that  the  mill  treated  69,390  tons  of 
crude  ore,  which  yielded  12,970  tons  of  lead  concentrates  as 
compared  with  157,460  and  27.650  tons  respectively,  the  decrease 
being  due  to  the  strike  of  last  autumn.  Including  development 
expenses  the  working  costs  averaged  23s.  id.,  a  decrease  of 
4s.  7d.  per  ton.  The  nett  profit  for  the  half-year  was  /■i54,o62 
as  against  ^^225, 292,  and  the  capital  expenditure  ^^8,442  against 
^17,032. 

Transvaal  and  Delagoa  Bay. — In  the  year  ended  August  31 
this  company  made  a  nett  ptofit  of  £()i,?>-;2,  an  increase  of 
;,;^  17,400.  The  dividend  after  remaining  at  i7i  per  cent,  for  five 
years  is  increased  to  22^  per  cent.,  and  the  carry  forward  is 
^^125,872.  Surplus  cash  assets  amount  to  ;f  158,549.  The  in- 
crease in  profits  was  largely  due  to  larger  sales  of  coal,  the  pro- 
duction of  which  amounted  to  674,367  tons,  an  increase  of 
100,530  tons.  There  was  written  off  for  depreciation  £y.y2f>. 
Shareholdings  have  been  slightly  reduced,  but  holdings  of 
British  Government  securities  have  been  increased  to  ;f 90,150. 

Hampden  rLONCi:BEY. — The  report  for  the  half-year  ended 
August  31  shows  that  the  ore  reserves  are  estimated  at  275,200 
tons,  containing  19,130  tons  of  copper.  Production  of  blister 
copper  amounted  to  3.31 1  tons,  containing  3,260  tons  of  copper, 
1,180  ozs.  of  gold,  and  22.412  ozs.  of  silver.  The  working  profit 
was  ^116,363  against  ^^16^223,  and  the  nett  profit  /0,858 
against  ^143, 816.  From  this  dividend  No.  11,  amounting  to 
/ 1 7,500.  has  been  paid,  and  transfers  made  of  / 11,888  to 
depreciation  reserve,  jfi7.=;"o  to  equalisation  reserve.  ;t^o  000 
to  reserve  for  development  and  plant  expenditure,  and  /S^  's 
carried  forward.  Surplus  of  liquid  assets  amounts  to  / 188,284. 
Labour  troubles  have  hampered  the  realisation  of  the  metal 
produced,  and  the  increased  financing  required  has  interfered 
with  dividend  distribution,  but  it  is  hoped  to  resume  payments 
at  an  early  date. 


OILFIELDS    PRODUCTION. 


Anglo-Egyptian  Oilfields.— For  past  week  : — Gemsah,  21  tons 
(last,  25  tons);  Hurghada,  3,179  tons  (last.  3,229  tons). 

British  Burmah  Petroleum.— Total  crude  oil  by  this  company 
and  Rangoon  Oil  Co.,  7S.926  barrels  for  January. 

Maikop  Orient  Oil.— Plot  435a,  Well  3.— For  week  ended 
January  19,   15,400  poods. 

United  British  Oilfields  of  Trinidad.— For  week  ended  Wed- 
nesday, February  13,  611   tons. 


MINING    NE-WS. 

Brokkn  Hill  Proprietary.— Cable  advices  have  been  received 

from  Melbourne  giving  fuller  particulars  of  the  results  for  the 

two  last  half-yearly  periods.     In   the  half-vear  ended  May  31 

there  was  a  nett  profit  of  ^^269. 769,  which  is  arrived  at  after 


It  is  officially  estimated  that  last  year  Canada  produced 
17,000,000  ozs.  of  gold.  23,500,000023.  of  silvtr,  113.000,000  lbs.  of 
copper,  56,000,000  lbs.  of  lead.  i.iSb.ooo  tons  of  pig-iron, 
1,735,000  tons  of  steel  ingotj  and  castings,  and  14,100,000  tons 
of  coal. 

Only  ;^i4o,ooo  a  month  is  allowed  to  be  exported  from  th& 
Uniiited  States  for  objects  of  charity. 


February  23,  1918. 


XTbe  Jnveetore'  lleview, 


207 


The  Treasury  has  been  consulted  under  the  notification  of  the  iSth 
January,  1915,  and  raises  no  objection  to  the  issue  of  the  undermentioned 
Debentures  and  Shares.  It  must  be  distinctly  understood  that  in  con- 
sidering whether  they  have  or  have  not  any  objections  to  the  new  issues 
the  Treasury  does  not  take  any  responsibility  for  the  financial  soundness 
of  any  schemes  or  for  the  correctness  of  any  of  the  Statements  made  or 
opinions  expressed   in   regard  to    them. 

This  offer  has  been  duly  registered  with   the  Registrar   of  Joint   Stock 
Compantes. 

TRAFFORD    PARK    ESTATES    LIMITED 
offer  for  Sale  Guaranteed  Debentures  and  Ordi- 
nary Shares  in 

TRAFFORD  PARK  COLD 
STORAGE  LIMITED 

(Incorporated  under  the  Companies'  Acts  igo8  to  1917) 


CAPITAL 


;/^I00,000 


DIVIDED    INTO 


50,000  Cumulative  Preference  Shares  of  £1  each  entitled  to  a  fixed  Cumu 
lative  Preferential  Dividend  at  the  rate  of  £6  per  centum  per  annum 
(free  of  Income  Tax  to  not  exceeding  5/-  in  the  £)  and  also  preferential 
as  t )  Capital  ;  and 

50.000  Ordinary  Shares  of  £1  each. 


OFFER  of  500  Five  per  cent,  per  annum  (free  of 
Income  Tax  to  the  extent  of  5/-  in  the  £)  FIRST 
MORTGAGE  GUARANTEED  DEBENTURES 


of   ^100     each     at     £99^     per    cent.,    and 
ORDINARY  SHARES  of  £1  each  at  par. 


50,000 


I 


Cold  Storage  with  a  capacity  of  approximately  One  Million  cubic  feel 
to  store  Ten  Thousand  Tons  of  Beef,  Mutton,  Bacon,  Butter,  Cheese, 
and  other  perishable  foods  requiring  Cold  and  Cool  Storage  is  being 
erected,  insulated  and  equipped  in  Trafford  Park  jn  accordance  with 
an  agreement  made  with  the  Ministry  of  Food.  The  Ministry  of  Food 
state   in   such   agreement— 

"  That  the  provision  of  this  Gold  Storage  enables  the  Port  of  Manchester 
to  be  used  to  better  advantage  for  the  importation  cf  frozen  produce," 
and  that  they  "will  so  utilise  it  to  the  best  advantage." 

The  Trafford  Park  Company's  Statutory  Railway  directly  connects  the 
premises  with  the  Manchester  Docks  as  well  as  with  the  railway  system 
of  the  Country. 

The  Buildings  are  nearing  completion.  The  Machinery,  Insulation  and 
Equipment  are  contracted  for  under  High  Priority  (P  One)  Certificates 
for  delivery  within  three  months,  these  stores  being  the  first  upon  the 
list    authorised    by  the  War  Priorities   Committee   of    the    Cabinet. 

It  is  provided  by  the  before-mentioned  agreement  that  H.M.  Government 
will  advance  to  Trafford  Park  Estates,  Limited  (hereinafter  referred  to 
as  "the  Estates  Company"),  the  cost  of  insulation  and  "machinery  and 
of  any  equipment  necessary  for  utilising  the  premises  as  a.  Cold  Store 
at  6  per  cent,  per  annum.  The  amount  so  advanced  is  to  be  repaid  to 
the  Government  by  the  Estates  Company  within  five  years  after  declara- 
tion of    Peace. 

The  buildings,  insulation,  machinery  and  plant  are  estimated  to  cost 
approximately  ;^iio,ooo,  to  which  must  be  added  £\o,6^g  for  the  land. 
The  premises  when  completed  and  working  as  a  going  concern  will  be 
conveyed  by  the  Estates  Company  to  Trafford  Park  Cold  Storage,  Limited 
(hereinafter  referred  to  as  "  the  Company  ")  at  the  total  amount  when 
ascertained  of  buildings,  machinery  and  plant,  and  the  value  of  the 
site,  plus  10  per  cent.,  such  percentage  to  include  the  formation  expenses 
of  the  Company  and  the  expenses  of  and  incidental  to  the  issue  of 
Debentures  and   also   Interest  during  construction. 

The  purchase  price  is  to'be  satisfied  by  the  issue  to  the  Estates  Company 
or  its  nominees  of  Debentures  and/or  Preference  and/or  Ordinary  Shares 
of  the  Company  at  the  option  of  the  Estates  Company  (the  shares  being 
credited  as  fully  paid)  to  a  nominal  amount  equal  to  such  purchase 
price. 

It  is  not  intended  to  issue  any  of  the  Preference  Shares  of  the  Company 
at  present. 

The  Trustees  for  the  Debenture  Holders  are  Mr.  T.  H.  BALFOUR 
BROWNE,    K.C,  and  Mr.   DAVID  Q.   HENRIQUES. 

The  Estates  Company  unconditionally  guarantee  the  payment  of  the 
principal  and  interest,  and  also  any  bonus  payable  on  redemption  of  the 
Debentures. 

The  interest  on  the  Debentures  will  be  payable,  free  of  income-tax  (to 
the  extent  of  5s.   in    the  £),  half-yearly  as  from    the  date    of  issue. 

;6'io  per  Debenture  and  2s.  per  Share  is  payable  to  the  Estates  Company 
upon  application.  The  balance  is  not  required  until  the  premises  have 
been  conveyed  to  the  Company  as  a  going  concern,  but  will  be  payable 
within  one  month  from  the  date  of  such  conveyance.  The  Estates  Company 
will   pay   interest   at    the   rate   of   5   per   cent,   per   annum,    free   of   income- 


tax   (to   the   extent   of   5s.    in   the    £), 


upon    amounts    paid    in    advance. 


in^  t  Bfiard  of  Referees  under  Section  42  of  the  Finance  (No.  2)  Act 
1915.  have  fixed  the  Statutory  percentage  for  Cold  Storage  Companies 
for  the  purposes  of  Excels  Profits  Duty  at  7i  per  cent.,  which,  with  the 
additional  percentage  allowed  by  the  Finance  Act.  1917,  makes  10*  per 
cent,  before  Excess  Profits  Duty  becomes  payable- 
The  Directors  of  the  Company  are  Messrs.  :  — 
MARSHALL  STEVENS,   of  Trafford   Hall,   Manchester. 

Chairman   and  Managing  Director  of  the  Estates   Company; 

THOMAS    GALLAND    MELLORS,    of    i.     King    John's    Chambers. 
Nottingham, 
Chartered  Accountant,  Director   of  the  Estates   Company; 

EDMUND  NUTTALL,   of  Trafford  Park  Road,  Trafford  Park, 
Contractor  ; 


THOMAS    LANGLEY   MAYCOCK 

Ship  Broker; 
all    of    whom    are    Directors    also    of    Port    of   Manchester 
Limited. 


of    io8,    Deansgate,    Manchester, 
Warehouses, 


The    full    Prospectus   and    Forms   of   Application    for    Debentures    and 
Ordinary  Shares  may  be  obtained  from : 

TRAFFORD  PARK    ESTATES,    LIMITED, 

TRAFFORD  PARK, 

MANCHESTER. 


THE  CANADIAN  BANK 
OF  COMMERCE. 


Head  Office 


TORONTO. 


SIR  EDMUND  WALKER,  C.V.O,,  LL.D.,  D.C.L.,  President. 
SIR   JOHN   AIRD,  General  Manager. 
H.  V.  F.  JONES,  Assistant  General  Manager. 


AUTHORISED  CAPITAL 
PAID-UP  CAPITAL    ■  ■ 
RESERVE  FUND       ... 


I25,00\000 
$15,000,000 
$13,500,000 


(£5,136,986) 
(£3,082,192) 
(£2,773,972) 


LONDON   OFFICE: 
2,   Lombard    Street,    E.G.  3. 


C.  CAMBIB,    Manager. 


A.    R.   FIIIPFS,  Assistant  Manager, 


381    Branches    throughout    the    Dominion  of   Canada,    and  in    St.    John's 

(Newfoundland),  New  York,  Portland  (Oregon),  San  Francisco,  Seattle,  and 

City  of  Mexico. 

Agents  in  all  the  Principal  Cities  of  the  United  States. 

The  Bank  has  exceptional  facilities  for  conducting  a  general 
banking  business  with  all  parts  of  North  America. 


STATEMENT  OF   THE    RESULT  OF   THE   BUSINESS    OF  THE  BANK 
FOR   THE  YEAR   ENDING  30th    NOVEMBER,  1917. 

Balance -it  credit  of  Profit  and  Loss  Account,  brought  for- 
ward from  last  year        

Net  profits  for  the  year  ending  30th  November,  after  pro- 
viding for  all  bad  and  doubtful  debts         


This  has  been  appropriated  as  follows  ; 

Dividends  Nos,  120, 121, 122  and  123,  at  ten  per  cent,  per 

annum 

Bonus  of  one  per  cent,  payable  1st  June 

do.  do.  do.  Ist  December      

War  tax  on  bank-note  circulation  to  30th  November    ... 

■  Transferred  to  Pension  Fund 

Sundry  Subscriptions 

Balance  carried  forward 


GENERAL  STATEMENT,  30th  November,  1917. 


£164.860    1    9 
541,963    8  11 

£706,823  10 

8 

£308,219    3    7 
30,821  18    4 
30,821  18    4 
30,821  18    4 
17,465  15    1 
14.958  18    1 
273.713  18  11 

£7i  6,823  10 

8 

LIABILITIES. 


Notes  of  the  Bank  in  circulation ... 

Deposits 

Balances  due  to  other  Banks 

Bills  payable 

Acceptances  under  Letters  of  Credit 


Dividends  unpaid      

Dividend  No.  123  and  bonus,  payable  1st  December 

Capitalpaid  up £3,082,19115    8 

Rest  Account 2,773,972  12    1 

Balance  of  Profits  as  per  Profit  and  Loss 

Account      273,713  18  11 


£4,930,629  14  7 

56,799,792    0  1 

1,618,370    4  5 

24,833  13  10 

1,150,205    3  3 


£64,523,730  16 

584    5 

107,876  14 


6,129,678    6    8 
£70,762.034    2    3 


ASSETS. 

Current  Coin  and  Dominion  Notes  

Balances  duo  by  other  Banks         

Government.  Municipal  and  other  Securities 

Call  and  Short  Loans 

Deposit  H  ith  the  Minister  of  Finance  for  the  purposes  of  the 
Circulation  Fund  


£11,229,913  16    3 

4.609,261  17  10 

11,483,016  16    1 

6,891,321  14    9 

170,789    0  10 

£34.384,303    5    9 


Liabilities  of  Customers  under  Letters  of  Credit . 
Overdue  Debts  (estimated  loss  provided  for)... 
Real  Estate  Mortgages  and  Other  Assets 
Bank  Premises 


1,150,205 
48.862 
296.834 


1,045,905  18 


£70,762,034    2    3 


B.  E.  WALKER,  President. 


JOHN  AIRD,  General  Manager. 


Certifed  by  the  Auditors  :    T.  Harry  Webb,  C.A.,  of  Webb,  Read,  Ilccnn 
C.iiinghau.  and  Co.;  James  Marwick,  C.A.,  of  Marwiok,  Mitchell,  Peat  and  Cp. 

ToEojjTO,  19th  December,  1017. 


2o8 


Zhc  Jnvestore*  IReview. 


February  23,  1918. 


Tea,  Oil  and  Rubber. 


Nothing  has  occurred  either  to  cheer  or  greatly  de- 
press the  rubber  market  this  week,  and  the  price  of 
standard  cr^pe  has  kept  reasonably  steady  round 
2s.  3|d.  Imports  last  week  amounted  to  945  tons, 
while  the  deliveries  were  573  tons,  leaving  the  stocks 
standing  at  12,225  tons,  against  9,780  a  year  ago.  The 
policy  of  restricted  tapping  does  not  appear  to  have 
made  a  very  auspicious  start.  It  is  true  that  the 
January  returns,  which  will  be  found  on  another  page, 
show  some  falling  off  as  compared  with  the  previous 
month,  but  a  year  ago  a  similar  phenomenon  was  wit- 
nessed in  a  more  accentuated  form,  and  the  explanation 
probably  is  that  at  the  end  of  the  year  a  good  deal  of 
what  in  mining  would  be  called  "sweepings"  are  in- 
. eluded  in  the  returns.  However  that  may  be,  it  is 
evident  that  the  suggested  reduction  of  20  per  cent, 
in  output  has  not  yet  made  much  progress.  Of  course, 
if  it  really  proves  workable — as  to  which-  we  have 
grave  doubts — the  curtailment  of  supplies  would  doubt- 
less help  to  raise  the  nrice  of  the  material  temporarily, 
but  whether  the  results  are  likely  to  justify  the  risks 
inseparable  from  such  a  policy  must  remain  an  open 
question  until  thoroughly  tested  by  actual  experience. 

United  Serdang  (Sumatra)  Riidper  Plantations,  Ltd. — Year 
to  August  31.  Issued  capital,  ;^2so,ooo  in  as.  shares.  Estate 
account,  £4g3,yso-     Reserves,  ;f255,ooo. 


Nett  profit 

Dividend   

Carried  forward 

Output    

Average  price  . . 

All-in  cost 

Planted  area    . . . 
Yield  per  acre    . . 


..lbs. 


. acres 
..lbs. 


1915- 


;fi5i.i6o 

45  P  c. 

^14,960 

2,475,000 

2S.    2}d. 

ii.ygd. 

9,640 

260 


iqi6. 


^213,965 

45  PC. 

;fi52,540 

3,028,520 

as.  5.33d. 

is.o.6od. 

9,640 

315 


i9»7- 


;f2i6,765 

40  p.c. 

^127,120 

3,269,210 

as.  7.32d. 

IS,  3.9ed. 

9.750 

335 


Last  year  ;^4o,ooo  was  placed  to  reserve,  and  on  this  occa- 
sion ;^io,ooo  is  so  appropriated.  From  the  1916  carry-forward 
£i3i,yoo  had  to  be  deducted  for  excess  profits  duty,  and  it  is 
estimated  that  ;,f95,ooo  will  have  to  be  paid  away  in  respect  of 
the  past  year.  The  average  yield  from  8,887  acres  in  bearing 
was  368  lbs.  per  acre,  virhich  may  be  considered  quite  satisfac- 
tory from  a  comparatively  young  estate,  tut  it  will  be  substan- 
tially increased  as  the  trees  become  more  mature.  Ol  course,  the 
company  has  been  badly  hit  by  the  excess  profits  duty,  but  the 
estate  is  doing  extremely  well,  and  there  are  still  4,390  acres  in 
reserve  suitable  for  cultivation,  so  that  the  prospects  may  be 
regarded  as  very  encouraging. 


Ansv^eps  to  Corpespondents. 


*.*  A  Koy  to  these  Answers  will  be  posted  early 
each  week  for  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  tor  six  months,  or 
6s.  9tl.  for  three  months. 

Deposits  against  future  Queries  may  be  lodged 
with  the  Publisher. 

l"  B.— We  are  doubtful,  and  regret  that  you  shooild  have 
parted  with  so  much  money  to  a  concern  whidh  has  nothing  to 
slhow  for  itself. 

W.  D. — -The  market  may  flare  up  on  some  ntws,  otherwise  we 
SiCe  no  object  in. buying  now. 

p.  R.  D. — The  terms  are  no  doubt  the  best  that  could  be  ob- 
tained. We  think  jxju  should  hold,  as  the  secucity  should  be 
sufficient. 

Kdimi. — (i)  WoU  managed,  with  room  for  expansion  in  culti- 
vated area,  but  prospects  of  quick  capital  appreciation  not 
strong  at  present,  as  the  trade  has  many  difficulties  to  contend 
with.  (2)  Also  good,  with  prospects  of  increase  in  outpat,  but 
similar  reasons  against  capital  appreciation  unless  you  are  pre- 
pair<:d  to  wait  for  some  time. 

T.  L.  C. — In  your  cas«  we  should  say  take  your  profit.  The 
scbeine  may  put  them  higher,  but  there  is.  no  certainty  of  this, 
so  why  not  secure  what  you  can? 

P.  B.— South-Eastem  Deferred. 

•n"  hi  ^■~'^^^  report  is  quote  satisfactory  so  far  as  these  days 
will  allow.  The  company  is  carefully  managed  and  the  stock 
looks  attractive  if  it  can  be  got  about  its  present  price. 

V.  D.— We  do  not  like  the  concern,  and  think  you  will  be 
happier  without  the  shares. 

Soho.— If  you  arc  prepared  to  wait,  they  are  quite  a  fair 
-speculative  purchase.  There  is  nothing  in  sight  at  present  to 
justify  any  quack  rise, 


COMPANY  MEETINGS. 

THE    CANADIAN    BANK    OF  COMMERCE. 

The  fitty-fiTst  annua.1  meeting  of  the  shareholders  of  the 
Canadian  Bank  of  Commerce  was  held  at  Toronto,  Tuesday, 
January  8,  1918,  when  the  directors  presented  the  annual  report, 
covering  the  year  ended  November  30,  191 7,  together  with  the 
usual  statement  of  assets  and  liabilities  (which  appear  else- 
where in  this  journal). 

DIRECTORS'    REPORT. 
The  balance  at  credit  of  profit  and  loss  account 

brought  forward  from  last  year    was  $802,319    09 

The   nett   profits   for   the   year   ended    November 

30,    after  providing  for  all  bad  and  doubtful 

debts,  amounted  to     2.637.5SS    43 

»3.439.874    5a 

This  has  been  appropriated  as  follows  :— 

Dividends  Nos.  120,  121,  122,  and  123,  at  10  per 
cent,  per  annum  and  bonus  of  2  per  cent $1,800,000    00 

War  taoc  on  bank-note  circulation  to  Novem- 
ber   30      '50.000    00 

Transferred  to  pension  fund    85,000    00 

Subscriptions  to  Canadian  Patriotic  Fund, 
British  Red  Cross  Fund,  British  Sailors'  Re- 
lief Fund  (Canada),  and  sundry  subscriptions         72,800    00 

Balance    carried   forward       '>33^>°74    5^ 

•3.439.874    52 

A  most  careful  revaluation  of  all  the  assets  of  the  bank  has 
been  made,  and  every  item  which  might  be  considered  as  bad 
or  doubtful  has  been  amply  provided  for. 

During  the  year  the  audit  required  by  section  56  of  the 
Bank  Act  has  been  made  by  the  auditors  appointed  at  the  last 
annual  meeting,  in  addition  to  the  usual  inspection  of  the  head 
office  and  branches  and  agencies  of  the  bank  by  the  staff  of 
our  own  inspection  department. 

OENGR&L    HAN&OERB    ADDRESS. 

Sir  John  Aird,  the  general  manager,  spoke  in  part  as  follows  : 
We  are  crossing  the  meridian  into  the  second  half-century  of 
the  bank's  ^istence,  and,  pausing  to  look  back,  we  may  feel 
satisfaction  in  what  has  been  accomplished  in  a  comparatively 
short  period  of  time.  While  we  hold  second  place  only  among 
the  Canadian  banks  in  the  matter  of  "total  assets,"  we  may 
point  to  OUT  premier  position  as  regards  "  current  loans  and 
discounts  in  Canada  "  as  an  indication  of  the  importance  of  the 
s.ha.re  taken  by  this  bank  in  the  task  of  providing  for  the 
financial  requirements  of  the  mercantile  community,  and  of 
carrying  on  the  daily  business  of  the  country.  The  profits  for 
the  year  show  an  increase  of  $198,000  over  the  figures  oJ  the 
previous  year,  an  increase  not  at  all  commensurate  with  the 
additional  business  transacted   or  the  additional  responsibiHty 

involved. 

The  deposits  now  amount  to  the  very  large  sum  ot 
$276,000,000,  an  increase  during  the  year  of  $46,529,000.  We 
estimate  the  total  turnover  of  the  bank  for  the  year  at 
$20,000,000,000. 

Turning  to  the  assets  side  of  the  balance-sheet,  we  find  an 
increase  in  our  holdings  of  cash  of  $8,361,000.  This  represents 
18.19  per  cent,  of  our  deposits  and  circulation,  and  17.4  per 
cent,  of  our  liabilities  to  the  public,  from  which  you  wiU  sec 
that  we  have  not  deviated  from  our  policy  of  carrying  strong 
cash  reserves  in  these  times  of  difficulty  and  uncertainty.  The 
large  increases  in  our  holdings  of  Dominion  and  Provincial 
Government  securities  and  of  BriUsh,  foreign,  atid  colonial 
public  securities  consist  principaUy  of  Treaeury  bills  of  the 
Dominion  and  the  Imperial  Governments.  Immediately  avail- 
able assets  have  increased  by  $37,995,000,  and  now  stand  at 
55.2  per  cent,  of  liabiUties  to  the  public.  Call  loams  are 
slightly  lower  than  last  year,  but  current  loans  in  Canada  have 
increased  by  $16,083,000,  the  net  increase  in  the  total  of  our 
current  loans  being  $12,097,000.  Total  assets  have  increased  by 
$55,947,000,  or  19.39  per  cent. 

The  members  of  the  staff  number  3,633,  including  280  mes- 
sengers and  367  janitors.  Of  our  officers,  1,422  have  now  taken 
up  arms,  or  75  per  cent,  of  our  present  male  staff,  exclusive  of 
messengers.  With  grief  mingled  with  pride,  we  record  a  total 
loss  of  153  men  killed  in  action,  69  of  whom  have  made  the 
great  sacrifice  during  the  past  year. 

During  the  )-ear  the  Canadian  banks  have  been  called  upon 
to  make  large  advances  to  the  Dominion  Government  to  pro- 
vide for  expenditures  in  connection  with  the  war,  and  have 
also  made  advnncee  to  the  Imperial  Government  for  the  pur. 


February  23,  1918. 


Zbc  Jnvestors'  IReview. 


2og 


chase  of  our  wheat  crop,  in  addition  to  those  already  ciureat 
for  the  purchase  of  munitions  in  Canada.  In  all  this  financ- 
ing the  bank  has  taken  its  full  share,  assisting  the  Government 
in  the  prosecution  of  the  war  to  the  best  of  its  ability. 

The  great  need  of  the  world  is  abundance  of  food,  at  reason- 
able prices,  and  if  we  in  Canada,  by  stimulating  production, 
transportaition,  and  distribution,  are  able  to  supply  the  naitions 
in  abundance,  we  shall  not  only  have  laid  broad  and  deep  the 
foundations  of  prosperity  for  ourselves,  but  shall  have  earned 
the  grartitude  of  the  nations. 

PRESIDENT'S   ADDRESS 

Sir  Edmund  Walker,  C.V.O.,  the  president,  spoke,  in  part,  as 
follows  :  — 

We  meet  again  with  the  shadow  of  th.e  great  war  affecting 
everything  we  say  or  do.  Although  the  war  is  in  its  fourth 
year,  it  is  still  full  of  surprises ;  indeed,  the  year  has  been  one 
of  many  and  swift  changes.  Our  greatest  danger  is  lest 
we  should  falter,  because  victory  is  less  easy  to  attain  than  we 
thought. 

In  considering  our  industrial  affairs,  we  fmd  that,  disregard- 
ing, as  usual,  shipments  of  gold  and  bullion,  our  exports  for 
the  fiscal  year  ended  March  31  last  were  1314,706,654  in  excess 
of  our  imports,  and  for  the  following  six  months  ended  Sep- 
tember 30  the  excess  was  $237,574,462,  making  for  the 
eighteen  months  a  surplus  of  ^{552, 281,116  in  the  value  of  our 
exports. 

The  field  crops  of  Canada  for  1917  are  valued  at 
Jfi, 089,000,000.  All  of  this  vast  wealth  is,  howe%'er,  needed  for 
the  conduct  of  the  war,  and  the  problem  of  the  hour  is  how  to 
apply  it  to  that  purpose,  wherever  it  is  no*,  needed  for  some 
other  equally  urgent  purpose.  The  extent  to  which  we  can 
supply  money  to  our  own  Government  for  its  share  in  the  cost 
of  the  war,  and  also  supply  money  to  Great  Britain  for  muni- 
tions of  all  kinds,  including  the  agricultural  and  pastoral  pro- 
ducts of  Canada  bought  by  Great  Britain,  depends  on  how  far 
we  are  willing  to  avoid  spending  money  on  anything  unneces- 
sary to  reasonable  well-being,  and  clearly  such  an  effort  we 
have  not  made.  Now  that  the  United  States  has  entered  the 
war,  there  is  no  market  for  our  securities  outside  our  own 
borders,  and  therefore  we  are  being  put  to  a  greater  test  of  our 
economic  powers  than  ever  before. 

In  January,  1917,  the  issue  of  War  Savings  Certificates  began, 
and  thus  far  over  195,000  have  been  sold,  amounting  to 
$12,000,000.  In  March  the  third  Canadian  War  Loan  was 
brought  out ;  the  net  subscriptions,  after  deducting  conversions 
and  the  subscriptions  of  the  banks,  amounted  to  $182,000,000. 
In  August,  the  Minister  secured  in  New  York,  by  tv/o-year  5 
per  cent,  notes,  $100,000,000,  of  which  $20,000,000  were  used 
to  retire  the  balance  of  a  loan  obtained  in  1915.  In  November 
the  Canadian  Victory  Loan  was  offered.  The  Finance  Minister 
created  an  organisation  calculated  to  show  what  the  Canadian 
people  could  do.  An  extraordinary  body  of  bond-dealers, 
bankers,  and  other  business  men,  aided  by  the  3,000  branches 
of  the  banks,  in  a  comparatively  short  campaign  secured  sub- 
scriptions  for  $417,000,000   from_  807,000  people. 

The  acutal  disbursements  of  Canada  for  the  war,  to  Novem- 
ber 30,  1917,  amounted  to  $685,000,000.  To  this  must  be  added 
outstanding  expenses  and  estimates  for  the  balance  of  the  year 
to  cover  requirements  here,  in  Great  Britain,  and  in  the  field 
of  war.  These,  carefully  computed,  indicate  that  at  the  end 
of  the  year  the  cost  of  the  war  to  Canada  was  about 
$760,000,000. 

The  sales  of  Canadian  securities  for  the  calendar  year  1917 
show  a  much  larger  total  than  ever  before,  but  the  issues, 
other  than  those  of  the  Dominion  CTOvernment,  are  naturally 
very  small. 

We  have  found  it  difficult  to  obtain  statistics  regarding  the 
quantity  and  the  value  of  the  various  kinds  of  wnr  supplies 
made  in  Canada.  There  is  a  reduction  in  the  output  of  many 
kinds  of  shells,  fuses,  and  cartridge  cases.  On  the  other  hand, 
however,  there  is  an  important  development  in  the  building  of 
steel  and  wooden  ships  and  of  aeroplane  engines,  and  also  of 
aeroplanes  of  a  certain  type.  There  are  now  under  contract  in 
Canada  for  the  Imperial  and  the  Norwegian  Governments  steel 
and  wooden  ships   aggregating  in  value  over  $90,000,000. 

In  the  president's  address,  until  a  few  years  ago,  an  attempt 
was  made  to  cover,  in  more  or  less  detail,  the  industrial  posi- 
tion of  Canada  and  of  such  other  areas  as,  through  our  branches, 
we  may  be  connected  with.  This  is  now  done  much  more  satis- 
factorily in  the  Review  of  Business  Conditions  wiitten  by  lead- 
ing officers  of  the  bank.  For  the  last  two  years  we  have  also 
been  publishing  a  Monthly  Letter,  the  impoitance  of  which  is 
now  widely  recognised.  In  it  the  current  statistics  of  finance 
and  trade  arc  published.  We  hope  that  those  among-  our  share- 
holders and  customers  who  are  sufficiently  interested  will  read 
these  publications. 


We  have  been  told  that  we  should  save  money,  not  for  our 
own  benefit  so  much  as  because  we  should  not  spend  on  un- 
necessary things  the  money  needed  to  carry  on  the  war.  If  we 
have  men,  money,  and  food  we  shall  win.  If  we 
fail  in  any  of  these  we  may  lose.  Difficult  as  the  problem  may 
be,  we  must  produce  more,  and  we  must  eat  less,  otherwise  we 
may  lose  our  chance  of  dictating  a  peace,  the  nature  of  which 
shall  be  a  guarantee  that  our  children  shall  not  have  to  fight 
again  for  those  liberties  which  are  now  in  jeopardy. 

The  motion  for  the  adoption  of  the  report  was  put  and  car- 
ried, also  the  resolution  appointing  Mr.  T.  Harry  Webb,  C.A., 
and  Mr.  James  Marwick,  C.A.,  auditors  until  the  next  annual 
meeting,  in  accordance  with  the  provisions  of  Section  56  of  the 
Bank  Act. 

After  votes  of  thanks  to  the  president,  directors,  general 
manager,  and  staff,  the  meeting  terminated. 

IMPERIAL   TOBACCO    CO.    (OF    GREAT 
BRITAIN    AND    IRELAND). 

The  sixteenth  ordinary  general  meeting  of  the  Imperial 
Tobacco  Co.  (of  Great  Britain  and  Ireland),  Ltd.,  was  held  on 
Tuesday  at  Bristol,  Mr.  George  Alfred  Wills  (the  chairman) 
presiding. 

The  Secretary  (Mr.  George  A.  Folk)  read  the  notice  conven- 
ing the  meeting  and  the  auditors'  report. 

The  Chairman  said  :  The  accounts  now  submitted  for  ap- 
proval cover  the  sixteenth  year  of  the  company's  operations. 
They  again  show  an  increase  in  the  nett  profits  as  compared 
with  the  previous  year,  and  they  also  display  a  sound  financial 
position.  The  return  from  our  large  holdings  in  associated 
companies  operating  abroad  continues  to  be  highly  satisfactory. 
Turning  to  the  profit  and  loss  account,  you  will  observe  that 
the  nett  trading  profits  and  dividends  for  the  year  to  October 
31,  1917,  after  allowing  for  income-tax  and  excess  profits  duty, 
amounted  to  ;ii'3, 538,539  3s.  3d.,  from  which  must  be  deducted 
;^  50,000  added  to  the  provision  for  pensions,  and  ;^  1,000,000 
transferred  to  the  general  reserve  account.  There  is  then  left 
a  balance  of  ;f  2,488,539  3s.  3d.,  which,  added  to  the  imappro- 
priated  balance  of  profit  from  October  31,  1916  (after  deducting 
;<^i97,547  18s.  3d.  paid  by  way  of  final  distribution  of  bonus  to 
customers  for  the  year  to  that  date),  gives  an  available  balance 
of  ^2,510,562  14S.  3d. 

When  I  last  addressed  you  I  gave  you  some  particulars  of  the 
numbers  of  the  company's  employees  serving  in  H.M.  Forces, 
and  up  to  the  present  time  the  number  of  the  company  s  em- 
ployees so  serving  is  upwards  of  4,200.  The  continual  with- 
drawal of  men  from  our  factories  for  military  service  is  making 
the  carrying  on  of  the  company's  business  increasingly  diffi- 
cult. Supplies  of  packing  material  and  stores  of  all  kinds  are 
more  and  more  difficult  to  procure,  and  there  is  often  consider- 
able delay  in  the  transport  of  commodities.  In  spite  of  these 
difficulties  I  am  glad  to  be  able  to  assure  you  that  the  character 
and  quality  of  the  company's  goods  have  been  and  will  be  main- 
tained. 

It  will  I  am  sure  be  gratifying  to  you  to  know  that  in 
November  last  we  were  honoured  by  a  visit  of  their  Majesties 
the  King  and  Queen,  who  inspected  the  W.  D.  and  H.  O.  Wills 
Factory  in  East  Street,  Bedminster,  Bristol.  Their  Majesties 
expressed  in  very  gracious  terms  their  satisfaction  with  all  they 
saw,  and  asked  particularly  to  be  shown  the  making  of  "  Wild 
Woodbine  "  cigarettes  which  are  so  popular  with  the  troops. 

For  some  years  past  the  board  have  been  able  to  make  a  gift 
to  their  employees  over  and  above  their  normal  salaries  or 
wages  and  in  view  of  the  loyal  work  that  has  been  done  in 
maintaining  the  business  of  the  company  under  the  trying  con- 
ditions of  the  past  year,  I  am  sure  you  will  approve  the  decision 
of  the  board  to  make  once  more  a  gift  to  every  one  in  the  service 
of  the  company  who  completed  not  less  than  twelve  months 
service  on  October  31,  1917,  being  the  close  of  the  last  financial 
year  and  who  remains  in  the  service  of  the  company  to-day. 
This  gift  wiU  be  at  the  same  rate  as  last  year— namely,  11  per 
cent  of  the  totat  salary  or  wage  earned  by  each  recipient  during 
the  twelve  months  in  question,  and  those  men  who  are  away  on 
H.M.  service  will  receive  the  same  share  in  the  gift  as  they 
would  have  received  had  they  been  at  work  with  the  company. 
The  conditions  of  the  gift  will  be  the  same  as  in  past  years,  the 
directors  reserving  to  themselves  a  discretion  to  grant  or  with- 
hold the  gift  in  any  case  which  may  appear  to  them  to  demand 
exceptional  treatment.  Last  year  I  told  you  that  a  number  of 
war  savings  associations  had  been  established  throughout  the 
company's  branches,  and  that  large  numbers  of  emploj'ees  were 
investing  their  savings  in  War  Savin"s  Certificates.  Invest- 
ment by  employees  through  these  associations  has  steadily  con- 
tinued throughout  the  year.  With  a  view  to  promotin?  thrift 
and  to  encourage  employees  to  hold  National  War  Bonds  and 
War  Savings  Certificates  the  directors  have  decided  in  this  year 
of  unprecedented  difficulty  to  make  a  special  gift  to  every  one 
in  the  service  of  the  company  in  the  United  Kingdom  who  com- 
pleted not  less  than  twelve  months'  service  on  October  31,  1917, 
and  who  remains  in  the  service  of  the  company  today.  This 
special  gift  will  be  paid  in  the  form  of  National  War  Bonds  or 
War  Savings  Certificates,  and  will  amount  to  6  per  cent,  of  the 
total  salary  or  wage  earned  by  each  recipient  during  the  twelve 
months  in  question.  Employees  in  the  United  Kingdom  who 
are  on  service  will  receive  the  same  share  in  this  special  gitt 
as  they  would  have  received  had  they  been  at  work  with  the 
company.  The  conditions  of  the  special  gift  will  be  the  same 
as  those  which  apply  to  the  ii  per  cent.  gift.    This  gift  is  made 


2IO 


Zbc  Jnveetors'  TReview, 


February  23,  1918. 


with  the  special  object  of  promoting  thrift  and  saving  among 
the  company's  employees,  and  the  directors  earnestly  hope  that 
employees  will  not  only  continue  to  hold  the  War  Bonds  and 
War  Savin  es  Certificates  they  receive,  but  will  also  make  every 
effort  to  add  to  them. 

Adverting  to  the  profit  and  loss  account,  I  should  mention 
that  before  arriving  at  the  balance  available  for  dividends  we 
have,  as  hitherto,  made  all  the  reserves  which  we  considered 
necessary  or  prudent,  including  provisions  for  income-tax  and 
excess  profits  duty.  The  dividends  we  propose  to  distribute, 
which  are  shown  in  the  appropriation  account,  are  at  the  same 
rates  as  those  for  the  previous  year.  The  prescribed  dividends 
have  been,  or  will  be,  paid  upon  the  "  A  "  5^  per  cent,  cumula- 
tfve  preference  shares,  the  "  B  "  6  per  cent,  non-cumulative 
preference  shares,  and  the  "  C  "  10  per  cent,  non-cumulative 
preference  shares,  and  it  is  proposed  that  there  shall  be  declared 
upon  the  ordinary  shares  a  dividend  of  10  per  cent,  for  the  year 
(free  of  income-tax),  on  account  of  which  5  per  cent,  was  paid 
in  September  last,  and  that,  in  addition,  a  bonus  shall  be  paid 
upon  these  shares  of  2s.  6d.  per  share  (free  of  income-tax). 
After  providing  for  these  dividends,  and  deducting  ;^i33,348 
OS.  6d.  for  interim  bonuses  paid  to  customers  for  the  half- 
year  to  April  30,  1917,  there  will  remain,  subject  to  final 
distribution  of  customers'  bonus  for  the  year  to  October  31, 
191 7,  a  balance  to  be  carried  forward  to  the  current  year  of 
;^27i,o25  4s.  I  id.,  which  is  about  ^^51,500  more  than  was 
brought  into  the  accounts  from  the  previous  year.  Turning  now 
to  the  balance-sheet.  On  the  liabilities  side  there  is  little  to 
comment  upon.  The  share  capital  remains  as  before.  The  pro- 
vision for  pensions,  &c.,  now  stands  at  ^^786, 520.  The  increase 
in  the  item  of  creditors,  &c.,  is  mainly  due  to  the  large  pro- 
vision necessary  for  excess  profits  duty  and  income-tax,  and 
the  bills  payable  and  drafts  in  transit  are  in  resf>ect  of  leaf 
purchases. 

Upon  the  assets  side  of  the  balance-sheet  the  item  of  land, 
buildings,  plant,  aind  machinery  is  somewhat  higher  than  last 
year,  the  expenditure  upon  additional  land,  buildings,  and 
plant  being  more  than  the  amount  of  depreciation  written  off 
for  the  year.  Goodwill  remains  at  practically  the  same  figure 
as  last  year.  The  investments  in  asoociatt^d  companies  are 
stated,  as  belore,  at  cost  less  reserves,  including  provision  for 
estimated  capital  liability  under  dividend  guarantees.  These 
investments,  as  you  are  aware,  largely  consist  of  shares  in 
companies  operating  abroad,  from  which,  as  you  know,  a  very 
considerable  revenue  is  obtained,  and  their  value  is  much  in 
excess  of  the  book  figures.  But  until  the  investments  are 
realised,  the  method  is  described  of  dealing  with  them  in  the 
balance-sheet  is  the  prudent  and  sound  one.  The  stock-in- 
trade  stands,  as  before,  at  substantially  below  cost,  owing  to 
the  provisions  which  the  directors  have  thought  it  proper  to 
make  against  fluctuations  in  the  price  of  leaf.  These  provisions 
are  very  substantial  in  amount,  but  looking  to  the  future,  with 
its  uncertainties,  not  only  in  the  price  of  leaf,  but  in  the  main- 
tenance of  supply  for  manufacture,  the  directors  believe  a 
cautious  course  to  be  tihe  right  one  to  pursue.  No  one  can  fore- 
cast the  future.  The  figure  ;it  which  the  stock  stands  is  higher 
than  last  year,  largely  owing  to  the  increased  cost  of  leaf.  The 
increase  in  the  cost  of  tobacco  leaf  in  America,  where,  unfor- 
tunately, the  greater  part  of  our  stock  now  lies,  has  been  ab- 
normal ;  in  fact,  prices  are  higher  now  than  they  have  been  at 
any  time  since  the  American  Civil  War.  I  think  you  will  expect 
me  to  tell  you  something  of  the  prospects'  of  the  nation's  to- 
bacco supplies  during  this  critical  period.  Let  me  remark  first 
of  all  that  in  anything  1  have  to  say  on  this  subject  1  must  not 
be  supposed  to  be  reflecting  in  any  way  on  the  Tobacco  Control 
Board.  They  were  only  appointed  in  May,  1917,  and,  if  I 
may  say  so,  they  have  at  all  times  done  their  best  in  a  difficult 
and  thankless  position.  What,  then,  are  the  prospects?  I  can 
only  tell  you  honestly  that  the  prospects  are  not  encouraging. 
Since  an  early  period  in  the  war,  when  we  weie  carrying  the 
usual  reserves  to  leaf  which  prudence  dictated,  drastic  restric. 
tions  have  been  imposed  upon  the  import  of  leaf  tobacco,  while 
the  rate  or  consumption  has  steadily  increased.  In  the  result 
the  stocks  in  this  country  have  dwindled  to  a  dangerously  low 
point.  Whether  this  position  could  or  ought  to  have  been 
avoided  we  need  not  now  discuss;  as  practical  men  \Ve  must 
ex^ine  the  position  as  it  is  to-day,  and  what  do  we  find?  Are 
sufficient  steps  now  being  taken  to  prevent  a  shortage  in  the 
nations  supply  of  tobacco?  To  that  .question  1  am  bound  to 
reply  that  they  are  not.  Certain  provisions  have  been  made  for 
import  during  the  current  year,  but  even  if  they  are  fully 
realised  they  will  not  suffice  to  avert  a  shortage,  and,  unless 
these  provisions  are  increased,  supplies  to  the  smoking  public 
will  have  to  be  cut  down  before  we  are  manv  weeks  older. 
This  brings  me  to  another  question  :  What  will  be  the  effect  of  a 
tobacco  shortage?  An  average  smoker,  we  may  say,  consumes 
some  two  or  three  ounces  of  tobacco  a  week.  What  will  happen 
if  he  goes  short?  In  the  first  place,  I  think  that  his  temper 
and  his  nerves  will  suffer.  That  is  a  matter  which  we  cannot 
regard  lightly  in  these  days,  when  most  men  are  working  at 
high  tension.  But,  apart  from  the  effect  on  temper  and  nerves, 
will  the  ounce  or  two  per  week  of  which  smokers  will  be  de- 
prived really  represent  so  much  saved  tonnage  to  the  nation? 
I  very  much  doubt  it;  in  fact,  I  say  with  some  confidence  that 
if  you  take  away  some  or  all  of  a  man's  weekly  ouncfs  of  to- 
bacco you  will  find  that  he  will  add  at  least  as  many  ounces 
to  his  weekly  consumption  of  food  ;  and  a  great  part  of  a  man's 
food  comes  to  him  from  overseas.  Therefore,  the  saving  of 
tonnage  is,  to  say  the  least  of  it,  problematical.  Let  me  point 
out  another  thing  that  will  happen  if  tobacco  supplies  to  the 
public  have  to  be  cut  down.     Tobacco  is  not  an  article  of  uni- 


versal consumption,  like  sugar.  If  sugar  runs  short,  the  shortage 
can  be  apportioned  over  the  whole  community.  Now,  a  hard- 
ship that  is  shared  by  all  is  not  the  worst  kind  of  hardship.  So 
long  as  a  man  feels  that  all  his  fellows  are  in  the  same  case  as 
himself,  he  can  bear  his  hardship  with  a  good  grace.  But  if  he 
feels  that  his  hardship  is  not  shared  by  his  neigl-.bour,  it  be- 
comes doubly  irksome.  And  that  is  what  will  happeo  if  there 
is  a  shortage  in  tobacco.  I  am  a  tobacco  manufacturer,  and  as 
such  I  shall  be  suspected  of  having  a  biased  mind,  but  I  have 
tried  to  put  the  position  before  you  plainly  and  from  the  national 
point  of  view.  The  whole  question  really  resolves  itself  into 
this  :  Is  it  in  the  national  interest  to  let  tobacco  run  short?  I 
believe  that  no  man  who  considers  the  question  dispassionately 
can  fail  to  come  to  the  conclusion  that  this  would  be  a  most 
dangerous  and,  in  the  end,  a  most  unreal  form  of  economy. 
The  increased  tonnage  necessary  is  inconsiderable,  but  unless 
it  is  provided  I  must  warn  the  public  that  the  shortage  is 
coming. 

The     Deputy-Chairman      (Mr.     William      Nelson     Mitchell) 
seconded  the  resolution,  and  it  was  carried. 


THE   STERLING  TRUST. 

The  first  ordinary  geneial  meeting  of  the  Sterling  Trust,  Ltd., 
wa^  held,  on  Tuesday,  at  Winchester  House,  Old  Broad  Street, 
Baron  Emile  B.  d'Erlanger  (chairmaji  of  the  company)  pre- 
siding. 

The  Secretary  (Mr.  B.  R.  Tomlinson)  having  read  the  notice 
convening  the  meeting  and  the  auditors'  certificate. 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  said  that  the  total  investments  stood  in  the  balance- 
sheet  at  ;^3, 873,938.  They  still  held  the  /■2,4oo,ooo  of  6  per 
cent.  Exchequer  bonds,  and  their  American  railway  holdings 
were  valued  in  their  books  at  ;£i,323,5oo,  while  they  had  mis- 
cellaneous securities  valued  at  ;^i5o,ooo,  and  ^8S,ooo  of  Trea- 
sury bills.  The  balance-sheet  revealed  a  very  strong  and 
liquid  position,  for,  outside  the  American  assets,  they  held 
^2,650,000  of  immediately  realisable  securities.  After  payment 
of  debenture  interest,  there  was  a  revenue  ba'ance  of  ;^89,374, 
which  included  an  exceptional  receipt  ot  approximately  ;^i9,ooo. 
The  directors  had  placed  ;^2S,ooo  to  restive,  and  recommended 
the  payment  of  a  6  per  cent,  dividend,  carrying  forward 
;^8,ooo,  subject  to  excess  profits  duty,  if  any,  and  directors' 
additional  remuneration.  According  to  the  estimates  they  had 
made  for  the  current  year,  based  upon  the  income  of  the  year 
under  review  and  the  present  rate  of  taxation,  they  should  have 
enough  to  maintain  their  dividend  of  6  per  cent.,  and  still 
have  a  substantial  margin.  He  foresaw  no  probable  difficulty 
in  reinvesting^  the  ;^2, 400,000  represented  by  their  Exchequer 
bonds  with  safety  at  an  average  of  6  per  cent,  or  mere,  nor 
did  he  think  they  would  have  to  go  far  afield  to  do  so.  The 
development  of  the  British  Empire  itself  would  afford  a  fruitful 
field  for  investment.  A  corporation  which  represented  close  on 
;^4,ooo,ooo  of  money,  and  which  had  stood  by  the  Government 
in  its  hour  of  need  to  the  fullest  extent  of  -ts  resources,  had  a 
right  and  a  duty  to  make  its  voice  heard. 

Proceeding  the  Chairman  said  :  The  question  of  a  tax  on 
capital  has  been  very  much  to  the  forefront  lately,  and,  like 
all  other  men  with  large  financial  responsibilities  to  the  com- 
munity, I  have  given  the  matter  a  good  deal  of  thought.  It 
is  not  sufficient,  in  my  opinion,  to  say  that  we  are  confronted 
with  the  sole  choice  of  two  evils — excessive  direct  taxation  or  a 
capital  tax— and  I  believe  it  is  not  beyond  the  ingenuity  of 
practical  financiers  to  find  another  device,  another  solution,  to 
tide  over  the  years  of  stress  that  will  follow  the  war.  The 
problem  can  only  be  carefully  studied  and  solutions  proiounded 
in  the  light  of  exact  data — that  is  to  say,  when  we  know  the 
extent  of  our  liabilities  and  the  yearly  revenue  that  has  to  be 
raised  to  meet  them.  It  must  not  be  forgotten  that  when  Eng- 
land emerged  from  the  Napoleonic  wars,  it  did  so  with  quite 
as  heavy  a  burden  for  its  then  national  resouices  as  we  should 
have  to  bear  if  the  war  now  came  to  an  end.  Let  me  substan- 
tiate this  assertion  by  a  few  figures.  The  population  of  the 
United  Kingdom  in  1815  has  been  computed  at  some  20,000,000; 
it  now  exceeds  some  45,000,000.  In  1815  the  national  income 
is  estimated  to  have  been  ;£35o,ooo,ooo  annually ;  in  1915  it  is 
estimated  to  have  reached  ^2,300,000,000.  Economists  are 
generally  agreed  that  a  reliable  and  conservative  basis  upon 
which  to  estimate  the  national  assets  is  to  value  them  at  six 
and  a-half  times  the  national  income.  On  that  basis,  in  1815 
the  national  assets  would  have  been  ;^2, 275.000,000,  whilst  in 
1915  they  had  risen  to  /15, 000,000,000.  Who  would  gainsay 
that  in  1914,  just  under  a  hundred  years  after  the  close  of  the 
great  Napoleonic  war,  our  national  debt,  standing  at  approxi- 
mately ;£'8oo,oco,ooo,  was  not  a  light  burden  for  the  community 
to  bear?  And  I  venture  to  think  that,  if  the  British  Empire 
should  resume  its  development  at  the  end  of  the  war  at  the 
same  rate  of  decennial  progress,  but  few  gfenerations  would 
pass  before  the  burdens  of  this  great  war,  if  they  do  not  exceed 
j/^6,ooo,ooo,ooo  to  ;^8, 000, 000, 000,  became  as  light  to  bear  as 
those  of  the  Napoleonic  period.  What  we  h.ive,  therefore,  to 
secure  is  the  certainty  that  the  Empire  will  be  able  to  resume 
its  natural  course  of  progress  and  development  in  assured  peace, 
and  that  the  material  resources  for  this  development  will  not 
be  destroyed  bj'  any  act  of  our  own  volition.  Wliat  is  perfectly 
clear  to  me  is  that  a  tax  upon  capital  sufficiently  large  to  effect 
any  material  reduction  of  the  national  debt  would  have  the 
effect  of  defeating  in  advance  the  most  vital  object  we  have  in 
view  after  the  war — the  reconstruction  and  development  of  our 
industrial,  commercial,  and  financial  potentiality,  which  has 
been,    concurrently   with  the    sound  principles  of   our  political 


February  23,  1918. 


tCbe  Jnve6tor6'  IRevtew. 


ill 


i 


constitution  and  the  noble  aims  of  the  civilising  influence  we 
exercise  over  vast  regions  of  the  earth,  one  of  the  pdlais  of 
granite  upon  which  tests  the  astounding  structure  of  the  British 
Empire. 

Sir  George  A.  Touche,  M.P.,  seconded  the  motion,  which 
was  carried   unanimously. 

The  dividend  recommended  was  declared  ;  Baron  Emile  B. 
d'Erlanger,  the  retiring  director,  was  re-elected;  and  Messrs. 
Price,   Waterhouse  and  Co.   were   reappointed  auditors. 

Mr.  W.  Sandford  Poole,  in  moving  a  vote  of  thanks  to  the 
chairman  and  his  colleagues  on  the  board,  said  that  the  direc- 
tors were  to  be  congratulated  on  the  first  report  they  had  issued 
imder  the  new  circumstances.  They  had  made  a  very  good 
start,  and  he  looked  forward  to  the  trust  provmg  a  great 
success. 

Mr.  Michael  B.  Snell  seconded  the  vote,  which  was  unani- 
mously accorded,  and  a  brief  acknowledgment  having  been 
made  by  the  chairman,  the  proceedings  terminated. 


NATIONAL    PROVIDENT    INSTITUTION. 

The  eighty-second  annual  meeting  of  the  National  Provident 
Institution  was  held  yesterday  at  the  Cannon  Street  Hotel, 
E.C.,  the  Hon.  Vicary  Gibbs  (chairman  of  the  company)  pre- 
siding. 

The  Actuary  and  Secretary  (Mr.  L.  F.  Hovil)  having  read  the 
notice  convening  the  meeting  and  the  report  of  the  auditors. 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  said  that  whilst  the  new  sums  assured  had  somewhat 
diminished,  the  new  annual  premiums  payable  amounted  to  the 
gratifying  figure  of  jf  26,472,  and  they  had  received  the  sub- 
stantial sum  of  ;fi3,i68  by  way  of  single  premiums.  In  one 
particular,  however,  the  new  business  had  undergone  a  marked 
change ;  they  were  of  necessity  getting  it  more  from  those  past 
military  age  or  exempt  from  military  service.  Owing  to  this 
ruling  out  of  the  smaller  insurances  on  the  lives  of  young  men 
who  were  now  mostly  engaged  in  fighting,  there  was  a  marked 
fall  in  the  number  of  new  policies  issued.  It  amounted  to  quite 
50  per  cent.  In  1912  they  issued  1,817  policies,  against  819  last 
year,  but  though  the  new  sums  assured  were  larger  in  the 
aggregate,  the  corresponding  new  premium  income  was  almost 
the  same,  and  in  single  premiums  they  only  received  ^^12,052, 
against  the  figure  now  reported  of  ;if  13,168.  The  death  claims 
amounted  to  90  per  cent,  of  the  amount  expected.  This  was 
quite  a  high  figure,  but  it  included  all  the  war  claims,  and 
compared  favourably  with  other  companies.  They  had  every 
reason  to  be  thankful,  because  for  the  whole  of  the  last  five  years, 
in  spite  of  war  claims  totalling  ;ifii7,555,  the  total  death 
claims  were  only  ;f2i,ooo  in  excess  of  the  previous  quin- 
quennium. As  regarded  expenses,  to  have  directed  the  affairs 
of  the  institution  at  a  cost  representing  £()  i8s.  6d.  of  the 
premium  receipts  must  be  a  matter  for  congratulation. 

The  report  and  accounts  were  unanimously  adopted,  and  the 
retiring  directors  and  auditors   re-elected. 

A  special  general  meeting  was  then  held  to  consider  the  ex- 
pediency of  passing  a  re.solution  effecting  various  alterations 
in  Rule  28.  At  this  meeting  the  Chairman  made  his  address 
on  the  quinquennial  valuation,  remarking  that  it  was  surpris- 
ing that  in  spite  of  the  war  they  should  have  done  practically 
as  much  new  business  as  they  transacted  during  the  previous 
quinquennium.  What  was  even  more  pleasing  was  that  they 
had  accomplished  this  without  any  increase  in  the  very 
moderate  outlay  for  expenses  of  management.  The  investiga- 
tion into  the  soundness  of  their  assets  showed  that  the  con- 
dition of  their  securities  was  highly  satisfactory.  Their  holding 
in  British  Government  securities  had  increased  by  over 
;^5oo,ooo  during  the  past  year,  and  now  stood  at  more  than  \\ 
millions,  or  21J  per  cent,  of  their  total  funds.  TJiey  had  now 
no  less  than  91  per  cent,  of  their  funds  in  home,  Indian,  or 
Colonial  securities,  as  against  77  per  cent,  in  1912,  their  home 
securities  alone  having  increased  from  63  per  cent,  to  79  per 
cent.  Their  holdings  in  all  other  countries  totalled  only  about 
7  per  cent.,  against  12  per  cent,  five  years  ago.  The  actuary  in 
his  report  valued  the  total  liabilities  at  jf  6,742,437,  the  differ- 
ence between  this  sum  and  the  assurance  fund  being  ^^375,000. 
The  actuary  had,  however,  purposely  refrained  from  calling 
this  difference  "  divisible  surplus."  Obviously  in  the  midst 
of  this  tremendous  war  the  ordinary  peace  reserves  were  not 
.sufficient.  On  the  other  hand,  it  was  impossible  to  calculate 
exactly  what  further  reserves  should  be  made  to  meet  the  extra 
risks  arising  out  of  the  war;  therefore  the  only  safe  course  to 
adopt  was  to  carry  forward  any  surplus  disclosed  by  a  valua- 
tion made  on  an  ordinary  pre-war  basis.  In  the  board's 
opinion,  any  division  of  profits  under  the  present  conditions 
would  be  an  act  of  folly  to  which  they  could  not  be  a 
party.  Their  object  was  to  maintain  the  National 
Provident  in  such  a  position  of  strength  that  after  the 
war  it  would  not  suffer  by  comparison  with  any  other  com- 
pany. There  was  a  feeling  that  when  peace  came  a  large  part 
of  the  depreciation  now  being  written  off  would  have  disap- 
peared, and  that  they  would  be  able  to  go  back  to  the  full  pre- 
war rate  of  bonus.  He  did  not  agree  with  that  view.  Any 
appreciation  would  only  come  gradually,  and  it  was  safer  for 
them  to  make  up  their  minds  that  the  war  would  cost  the  equi- 
valent of  something  like  a  five-years'  bonus  than  to  entertain 
the  flatteiing  hope  that  the  greater  part  of  the  present  loss 
would  be  recovered  at  an  early  date.  On  the  other  hand,  he, 
personally,  could  not  imagine  that  the  war  would  be  so  pro- 
longed that  they  would  not  'be  able  to  resume  payment  of  a 
bonus,  and  a  good  bonus,  five  years  hence. 

The  alterations  in  Rule  28  were  duly  carried,  and  the  pro- 
ceedings terminated  with  a  vote  of  thanks  to  the  chairman. 


RAILWAY.  SHARE  TRUST  AND  AGENCY. 

The  twenty-ninth  annual  general  meeting  of  the  Railway 
Share  Trust  and  Agency  Comipany,  Ltd.,  was  held  on  Mionday 
at  the  Cannon  Street  Hotel,  E.C.,  Mr.  C.  C.  Macrae  (the  chair- 
man) presiding. 

The  Secretary  (Mr.  A.  Waller  Hall)  read  the  notice  con- 
vening the  meeting  and  the  auditors'  report. 

In  moving  the  adop<ion  of  the  report  and  accounts,  the  Chair- 
man said  he  had  to  express  the  unfeigned  regret  of  the  board 
at  the  loss  of  two  of  their  colleagues.  The  first  in  point  of 
time  was  his  own  loved  son  (Lieutenant  Frank  Laing  Macrae), 
who  had  given  his  life  for  his  country  like  so  many  other 
gallant  youths.  The  second  was  Captain  Malcolm  Laing,  who 
was  the  senior  director.  To  fill  these  vacancies  Mr.  L.  E. 
Chalmers  (of  Messrs.  Brown,  Shipley,  and  Co.)  and  Mr.  Thomas 
Gilbert  Scott  (of  Messrs.  Laing  ;ind  Cruickshank)  had  been 
elected  directors.  Turning  to  the  accounts,  the  Chairman 
stated  that,  including  the  amount  brought  forward,  the  balance 
at  the  credit  of  profit  and  loss  was  ^^47,909,  and,  after  paying 
the  full  dividend  on  the  B  stock  and  3  per  cent,  on  the  A 
stock,  there  remained  £-]fiT,\  to  be  carried  forward.  The  re- 
serve fund  had  been  increased  to  ;^96,352.  He  thought  it  would 
be  agreed  that  the  accounts  showed  the  company  to  be  in  a 
very  sound  and  satisfaotory  condition,  subject  always  /to  the 
question  of  the  depreciation  of  their  investments.  The  valua- 
tion which  had  been  made  disclosed  a  depreciation  on  the 
book  values  of  ;^i2S,ooo,  or  slightly  under  n  per  cent.,  and 
in  the  case  of  this  company,  as  well  as  of  the  sister  company 
—the  Railway  Debenture  Trust— the  greater  part  of  the  de- 
preciation was  due  to  the  slump  that  occurred  towards  the  close 
of  their  financial  year  in  American  securities.  If  this  de- 
preciation represented  an  actual  loss  they  would  have  to  regard 
their  reserve  fund  as  wiped  out,  but  he  felt  confident  that  most 
of  it,  in  the  absence  of  anything  in  the  nature  of  a  public 
catastrophe,  would  be  recoivered  in  the  course  of  time. 

Mr.  Richard  S.  Guinness  seconded  the  motion,  which  was 
carried.  — — - 

RAILWAY   DEBENTURE    AND    GENERAL 
TRUoX. 

The  forty-fifth  annual  general  meeting  of  the  Railway  Deben- 
ture and  General  Trust  Co.,  Ltd.,  was  held,  on  Monday,  at 
the  Cannon  Street  Hotel,  E.C.,  .Air.  C.  C.  Macrae  (the  chair- 
man) presiding. 

The  Secretary  (Mr.  A.  Waller  Hall)  read  the  notice  and  the 
report  of  the  auditors. 

The  Chairman,  after  alluding  to  the  changes  in  the  direc- 
torate to  which  he  had  referred  at  the  meeting  of  the  Railway 
Share  Trust  and  Agency  Co.,  said  that  the  gross  profits  of  the 
period  under  review  amounted  to  jf  108, 4^7,  or  about  .^f  1,00a 
less  than  in  the  previous  year.  That  falling  off  was  more  than 
accounted  for  by  the  non-payment  of  ;^2,ooo  which  ought  to 
have  been  received  by  way  of  interest  from  their  investment  in 
Russian  Treasury  bills,  which  had  been  repudiated  by  those  for 
the  moment  in  power  in  Russia.  It  was  proposed  to  pay  a 
final  dividend  on  the  ordinary  stock,  making-  up  the  final  dis- 
tribution for  the  year  of  5  per  cent.,  and  to  carry  forward 
£%,yi\.  The  reserve  account  had  been  further  increased  to 
^^272, 918.  A  valuation  of  the  investments  showed  a  deprecia- 
tion of  approximately  16  per  cent,  to  17  per  cent,  on  the  book 
values.  For  many  years  they  were  content  to  invest  in  deben- 
tures paying  5  per  cent.,  and  those  of  th".  character  acquired 
by  them  might  be  taken  all  round  as  having  cost  about  par. 
With  the  change  in  the  value  of  money  brought  about  by  the 
war,  the  price  of  such  securities  had  been  reduced  by  about  20 
per  cent.,  but  it  was  not  unreasonable  to  anticipate  that  after 
the  war  there  would  be  a  return  to  money  on  a  si  per  cent, 
basis,  in  which  case  50  per  cent,  of  their  present  depreciation 
would  disappear.  He  concluded  by  moving  the  adoption  of  the 
report  and  accounts. 

Mr.  Richard  S.  Guinness  seconded  the  motion,  and  it  was 
carried. 


Flotsam  of  Russian  Revolution. 

Aanongist  the  items  of  news  puiblished  this  week  relating  to 
affairs  in  Russia  are  the  following : — Owners  in  Russia 
possessed,  of  more  than  four  homed  cattle  are  to  be  suibject  to 
a  levy  of  ^5  a  head,  and  those  who  hawe  more  than  two  pigs 
are  to  pay  £z  per  head. — Non-State  railways  in  Russia,  either 
working  or  under  construction,  are  to  be  declared  State  pro- 
perty, and  the  shares  quoted  in  Russia  and  foreign  markets 
will  be  annulled. — Red  Guards,  that  is  to  say,  the  armed  emis- 
saries of  the  Bolshevik  tyranny,  now  hold  sway  over  more  than 
half  of  the  population  of  Finland,  but  the  centre  of  the  country 
is  in  the  hands  of  the  White  Guard,  who  may  be  considered 
Finnish  patriots. — Chita,  the  capital  of  Transbaikalia,  Siberia, 
has  toeen  taken  by  the  revolutionary  troops,  at  the  head  of 
whom  was  a  band  of  specially  selected  Cossack  leaders,  under 
the  Cossack  leader  Ivanoff. — The  decree  whereby  the  Russian 
Republic  only  recognises  civil  marriages  fixes  the  marriage- 
able lages  of  males  at  18  and  females  at  i6,  and  prohi'bdts  the 
marriages  of  cousins.  Insanity  is  a  bar  to  marriage,  and  ille- 
gitimate children  have  the  same  rights  as  legitimate. — K  Riga 
telegram,  via  Berlin,  asserts  that  the  "better-class  Letts" 
ardently  .desaie  the  advent  of  the  German.,  not  merely  for  the 
purpose  of  the  temporary  pjotection  of  lives  and  property,  but 
to  pave  the  way  for  a  complete  surrender  of  Esthonia  and 
Livonia  to  Germany. — Bonds  of  the  Russian  Liberty  Loan  not 
exceeding  100  roubles  in  value  are  to  be  issued  under  the  decree 
of  the  People's  Commissioners  by  the  State  Bank  as  paper  cur- 
rency at  current  rates.  Those  who  refuse  to  accept  the.se  bonds 
at  their  face  value  will  be  prosecuted  and  punished  with  the 
utmo.st  severity  of  the  revolutionary  laws. 


Hi 


Zbc  Jnvestote'  IReview. 


February  23,  1918. 


INDIAN  RAILWAYS. 


»J»M». 


OKoss  tiurnc  Fen  week. 


endinc 


Assam  BeoRal       . . 

BarsI 

Bengal  &  N.-W.  .. 
Benfial  Nagpnc  . . 
Bombay,  Baroda  .. 
Bnrma  ..        .. 

Delhi  Umballa 
East  Indian.. 
Gt,  Indian  Penln.  .. 
Lucknow-Dareitly. . 
Madras      and       S. 

Mahratta  .. 
Nisam'sGd.  (Broad) 

,,        „     (Metre) 
Robilknnd  and 

Kumaon  .. 
South  Indian 


Dec. 

t 

H 

Nov. 

»4 

Dec. 

« 

Feb. 

a 

Dec. 

I 

Feb. 

9 

" 

9 

Mi'v. 

>4 

Dec. 

8 

,, 

8 

" 

8 

" 

1 

8 

Amount 


Rs. 

'.30,307 
16,100 
3,63,620 
11,18,000 
15,28,000 
4,34,871 
82,200 
23.62,000 

2J,70,400 

4>>S99 

io,go,oo3 
1,25,301 
1,08,008 

49,020 
6,73.^48 


In.  or  dec. 

on  last 

year. 


Rs. 

—  3,276 

—  3,700 

—  88,445 
4-  1,75,000 
+       26,000 

—  36,671 

+     13,211 

—  45.000 
4-  1,93,100 

—  3.018 

+     48,788 

—  2,928 
+       6,828 


OROSs  Tiurnc  to  date 

Id.  or  dec. 
Amount        on  last 
year. 


11,625 
6,989 


Rs 

11,16,130 

3,77,coo 

25,62,240 

3,68,81,378 

2,50,09,000 

33,08,824 

16,93,786 

4.38,23,000 

4,18,23,411 

3,12,651 

92,20,000 
11,93,681 
7,22,830 


Rs. 

—  83,642 

—  I,57,cco 

—  5.27,633 
+  3',63.5»4 

—  10,15,000 

—  1,03,650 
+  2,34, :95 
4-  17,56,000 
+  29,97,529 
¥        14,440 

4-  4,46,210 
+        47,924 

—  21,688 


3,55,047  + 
62,99,588  4- 


15,899 
3,62,399 


t  April  1.           I  October  i. 
TRAMWAY  AND  OMNIBUS.— HOME. 

Dublin  United       .. 
Hasting  and  Dlst.. 
Isla  of  Tbanet 
Lancssbire  United.. 
Provincial    . . 
Vorks.  (Wst.  Rdng.) 

Feb.  8 
„     18 
Ian.     5 
Feb.  13 
Ian.  19 
Feb. 17 

7.496 
963 
164 

2,592 
2,265 

a.515 

+    1,918 
+       140 
—      104 
+       986 
+       385 
+       773 

* 
* 

39.873 
6,476 
2,290 
15,503 
36,795 
16,259 

+       6,889 
+          410 
—       1,434 
+        4,752 
+        4,863 
+        3,838 

•  From  Oct.  i.  t  From  Jan.  i. 

TRAMWAY  AND  OMNIBUS— FOREIGN   AND  COLONIAL. 


Alabama  Power     .. 
ADglo-Argentine    .. 
Auckland  Electric. . 
Brazilian  Traction  . 
Brisbane  Eleo.  Inv. 
British  Columbia 
B.A.  Lacroze 
Burmah  Electric 
Calcutta 
Carthagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &  T.      , , 
Hongkong   . . 
La  Plata 
Lima  .. 

Madras  Eleotrlo    . . 
Manila  Electiio.... 
Mexico 
Rangoon 

Singapore  Electric 
Toronto 

United  of  Monte  V 
Vera  Cruz    .. 
Winnipeg    .. 


Nov. 

1 

Feb. 

18 

Oct. 

26 

Dec. 

Oct. 

Dec. 

S 

|an. 

h 

Feb. 

16 

Jan. 

b 

Dec. 

Ian. 

1 

Dec. 

Feb. 

IS': 

Aug. 

8 

Nov 

} 

Jan. 
Deo. 

s 

29 

Nov 

i 

Jan. 

Nov 

s 

£ 

1 14. '96 
53.304 
22,308 
kl7,3i  2,000 
33,580 
•  167,333 
38,902 

R5.25,429 

Rs. 70,548 

4,011 

'3,4^ 

12,193 

4,711 

20,432 

Rs.  37.363 

65,467 

$215,256 

.  5,361 

•  13,201 

•42-!,556 
36,016 
46,300 

•  86,888 


£ 

Ms. 

+ 

24,747 

12 

4- 

304 

t 

4- 

880 

a 

4-  M757,ooo 

12 

i- 

820 

10 

4- 

•30,967 

■> 

f 

760 

7 

4- 

Rs.1,627 

4- 

Rs.1,776 

♦ 

+ 

29 

* 

+ 

1,083 

? 

— 

•  604 

4- 

396 

12 

4- 

3>"87 

12 

4- 

Rs.3,741 

* 

4- 

4,667 

8 

— 

•  108,669 

4- 

728 

+ 

•  1,173 

— 

•8,753 

11 

¥ 

2,675 



10 

— 

» 14  744 

11 

£ 

1,277.830 

368,767 

92,118 

M84&85000 

328,420 

•599,797 

269,377 

134,537 

Rs4,20,3o6 

4,011 

122,121 

•696,715 

48,962 

195,748 

Rs. 115, 641 

547,492 

•3,193,106 

5,361 

•668,805 

♦5,032,17s 

101,101 

567,000 

•748,976 


£ 

¥  359,725 
+  18,531 
+  7,832 
4-M7315000 

-  2,C00 
4-  (60,091 
+  340 

4-  Rs.  144 
4- Rs.  1 3,414 

4-  29 

-  1,054 

-  •39,379 

-  1,873 

^■  8,037 
4- Rs. 10,215 

4-         70,625 

-  •197,227 

4-  728 

4-  •11,901 

+  •2.39>i33 

+  7,992 


•  327,782 


628  days.       •  From  Jan.  i.      i  Nett.       a  From  July  i.      c  Two  weeks. 
FOREIGN  RAILWAYS. 


AlcoyandGandia.. 
Antofagasta  (Chili) 
Arauco 

ArKentine  N.B. 
Bilbao  R,  and  Canta 

Bolivar         ..        .. 

Brasil 

Brazil  Gt.  Southern 

B.  Ayres  &  Pacific 
Do.  Central 
Do.Gt.South'n 
Do.       Western 

Central  Argentine. . 

C.Ur'g'ayofMte  V, 
Do.  East'n  Ex, 
Do.North'aBz. 
Do.  West'n  Ex. 

Cordoba  Central  , 

Costa  Rica  . 

Cuban  Central 

Dorada  Extension. 

Egyptian  Delta      . 

Entre  Rios  ., 

French  Sante  Fi  . 

Gt.  South,  of  Spain 

Gt.West.  of  Brazil 

Havana  Central    , 

Inter,  of  C.  Amer... 

La  Guaira  and  Car, 

Leopoidina,. 

Midland  Uruguay . , 

Mogyana 

N.W.  of  Uruguay  .. 

Nitrate 

Paraguay  Central  .. 

Paultsta 

Peruvian  Corpn    . , 

.Salvador 

State  of  Bahia  S.W. 

S.  Paulo  (Ucazilian) 

Sorocabaoa.. 

Taltal 

United  of  Havana. . 

West'n  of  Havana. . 

Zafra  and  Huelva. . 


Feb. 

Deo. 
Feb. 
Jan. 

Nov. 
Oct. 
Feb. 
Dec. 
Feb. 


Ps 


Ian. 
Feb. 

5 
9 

Ian. 

* 

Deo. 

11 

Feb. 

16 

Aug. 

Feb. 

9 

,, 

16 

,, 

9 

Jan. 

C 

Feb. 

16 

Jan. 
Nov. 

Deo. 

Feb. 

15 

li'ov. 

16 

* 

Ian. 

♦ 

Feb. 

9 

Nov. 

* 

Feb. 

17 

Dec. 

* 

« 

Feb. 

16 

16 

Nov. 


£ 

10,003 
33,095 
14.500 
9,700 

5,ioS 
12,000 
M4, 746,000 

Ml3.5S,200 

122,000 
30,817 

122,000 
62,000 
87,000 

15.985 
4,690 
2,662 
2,196 

21,000 

2,257 
33,617 

8,300 
11,867 
19,000 
132,000 
30,416 
18,500 
10,884 
23,424 

8,250 
28,868 
10,638 

M2,2t2,00O 

»33,000 

34,097 

2,730 

M3, 506,000 

31,189,350 

♦  3,314 

M85,oo3 

39,492 

Ma,i07,ooo 

29,108 

90,464 

12,020 
10.538 


„     £ 

4-Ps.  1,0:0 

H  1.895 
I-  2,000 
I-  2,900 
-  1.099 
I-  444 

hM66<,379 
4-  Ml4,900 
36,000 
8,031 
17,000 
13,000 
13,300 
2,379 


Ps. 


1,219 

4-  201 

+  S8 

—  6,640 

—  3,397 

—  3,611 

—  900 
+  4,490 
h  6,000 

+     29,099 

-PsS4,4i5 
4-  3,630 
+        2,425 

—  8,199 

—  750 
+  1,312 
-„  3,395 
4-  M  222,440 
4-  »8,388 
4-  3,269 
4-  560 
+  M  589,750 
+  S  254,220 

—  (267 
M45,ooo 

+  17,350 
4-  M224,2o6 
+  13,306 
+  35,664 
4-  6,216 
403 


Ps.  61,580 

259,135 

132,0*0 

273,630 

5,108 

..      79,736 

M 45353000 

M  427,477 

2,633,000 

143,923 

3,382,705 

1,469,000 

3,089,200 

586,712 

157,803 

101,824 

70,713 

925,193 

76,472 

475,726 

8,300 

207,935 

466,600 

900,336 

Ps.178,881 

131,600 

257,731 

23,424 

8,250 

233,235 

94,885 


„£ 

Ps. 11,570 

3.430 

23,200 

55,798 
1,099 

23,809 
4-  M5238971 
4-  M50,t07 
258,000 
5,054 
324,549 
246,000 
500,500 
162,966 
7,540 
27,341 
7,715 
46,160 
59.'^4 
92,703 
900 
44,846 
82,600 
173.429 
-Ps.423197 
29,650 
44,849 
8,199 
750 
70,639 
7,355 


+  M  21669,300  4-  M247,712 

'      •159,682  4-     $13,092 

107.793  +•         8,713 

93,690  4-         11,240 

M3o654,ooo  4M1426138 

87,277,620  4-S  836,998 

»44,8l0  —      84,745 

Ml,02i,ooo  —  M66,ooo 

258,035  +       90,563 

M  16,988  4- M 1735203 

150,436  +       38,893 

1,567,974  +  549.341 

256,464  +   63,173 

135.491  —         1.366 


•  Months,  t  From  Jan.  i.   t  From  July  i.    c  Nett.    b  15  days,    a  10  days 
COLONIAL  RAILWAYS 


Helta 

Oct.   «£ 

67.631 

4-        9,860 

12 

£ 
—  _  13,927 

Canadian  Northern 

Feb.  14 

•688,oco 

4-   »86.ooo 

•23,894,700 

Canadian  Paoifio   .. 

$2,306,000 

4- •  126,000 

•  l4,?72,COO 

891,521 

4.  •744,030 

Gt.  Trk.  Main  Line 

119,663 

—      12,002 

-     68,754 

Gt.  Trk.  Western.. 

25,541 

—        2,507 

179.783 

Detroit  G.  H.  &  M. 

9,493 

—        1,06  J 

61,161 

GrTkPac  Prairie  Sc 

28,094 

+       »4,347 

144,285 

t-            49.577 

.VlasuonalanJ 

Sep.    • 

47,670 

—        9,630 

47,670 

—              9,630 

Mid. of  Westn.  Aus. 

Dec.    • 

9,659 

*•        2,107 

6 

New  Cape  Central.. 

Jan.    5 
Oct.    *c 

1,928 

341       ) 

1,928 

321 

Rlio.1e.aa 

99,687 

+      ll,0J3      1 

99.637 

+       ii,oa3 

•  Montb 

s          t 

July  I. 

f  Jan.  1. 

cf 

rom  Oct.  1. 

MONTHLY    STATEMENTS. 


\ 


HETT  EARMIHOS  FOR   HOMTH. 

KETT  EAIKIHaSTODATt. 

■AHE 

Month. 

Amooot. 

In,  or  Dee. 
on  Ust  year 

^1 

Amount. 

In.  Of  Dec. 
00 last  year 

Dols. 

Dols. 

Dolt. 

Doli. 

Atohlson  T.  A  S.  F« 

Nov. 

4,iao,oco 

—1,062,000 

11 

44,286,000 

—  1,488,000 

Atlantic  Coast  Line 

Dec. 

2,036,000 

4-     420,000 

12 

12,026,000 

4-      607,000 

Baltimore  8c  Ohio  .. 

jl 

1,831,000 

—1,165.000 

12 

30,588,000 

—  3.425,000 

Canadian  Northern 

J, 

65,300 

—    758,500 

6 

3,335.100 

—  2,961,000 

Canadian  Pacifio   .. 

Jan. 

3,911,000 

-1,110,000 

12 

46,346,oco 

—  3,930,000 

Chesapeake  &  Ohio 

Nov. 

1,228,000 

—   182,000 

11 

12,861,000 

—  1,444,000 

Chicago  &  N.W.    .. 

Dec. 

2,711,000 

—       10,000 

12 

27,015,000 

—  3,634,000 

Chicago  Burl.  &  Q. 

Nov. 

1,642,000 

— 2,031,000 

II 

31,281,000 

-  3,956,000 

Chicago  G.W. 

294,000 

—   159,000 

11 

3,488,000 

—     995.000 

Chicago  Mil.  &  S.P. 

Dec. 

894.000 

-1,718,000 

12 

22,026,000 

—  9,338,000 

Chicago,  Rock  I. &P. 

Nov. 

1,833,000 

+      37,000 

11 

16,461,000 

—  2,534,000 

Colorado  &Bouthern 

444,000 

—   233,000 

II 

5,320.000 

4-      370,000 

Cuba 

, 

102,000 

4-      22,000 

5 

774.000 

—      157,000 

Delaware  &  Hud.  .. 

190,000 

—   485,000 

11 

5,682,000 

—  1,615,000 

Denver  &  Rio  Gran. 

,1 

572,030 

—   420,000 

11 

7,152,000 

—  1,539,003 

Erie 

307.000 

4-     148,000 

12 

10,538,000 

—  5,277,000 

Gr.Tr.  Main  Line.. 

f86,200 

—  £128,600 

11 

£1,907,300 

—  £627,900 

—  £139.050 

Grand  Trunk  Wastn 

6fl3,650 

-     fl,950 

11 

423,200 

Detroit G,ll.&  Mil., 

6/61,700 

—     £1,100 

11 

£67,700 

-     £99,900 

Gt,  Northern 

Dec. 

1,165,000 

—1,401,000 

12 

22,987,000 

—  6,179,000 

Illinois  Central      .. 

Nov. 

1,466,000 

—    409,000 

11 

17,538,000 

4-  2,590,000 

Kansas  City  Southo. 
Lehigh  Valley 

Dec 

315,000 

—      19,000 

12 

4.495.000 

4-      569,000 

Nov. 

628,000 

—    376,000 

11 

9,240,000 

—  2,410,000 

Louisville  &Nashvl. 

Dec. 

1,296,000 

—    178,000 

11 

16,949,000 

—     835,000 

Minn.  S.P.  (Soa)l  .. 

877,000 

—    294,000 

11 

8,974,000 

-3,351,-00 

Miss.  K.&  Texas.. 

Nov. 

972,000 

—    271,000 

11 

7,393,000 

4-  2.447,000 

Missouri  Pacifio   .. 

1,690,000 

4-     321,000 

5 

9423,000 

f  1,920,000 

NewYorkCent.&H, 

2,939,000 

-1,742,000 

11 

45,049,000 

-13335.00a 

N.Y.  N,  Haven  &H. 

1,469,000 

-    603,000 

11 

19,597.000 

—  1,665,030 

New  York  Ont.iW, 

Dec. 

111,000 

—      26,000 

12 

2,228,000 

-       97,000 

Norfolk  &  Western. 

, 

1,499,000 

—     200,003 

12 

19,871.000 

-  3,590,000 

Northern  Pacific   . . 

Nov. 

1,423,000 

—2,122,000 

11 

26,039,000 

—  2,278,000 

Pennsylvania    East 
and  West  Lines.. 

Dec. 

2,010,000 

-4,493,000 

12 

88,450,000 

—  20891,000 

Phil,  and  Reading.. 

Nov. 

I,o64,oco 

—1,199,202 

11 

il,877,7'» 

—  6,626,030 

577.033 
1,304,000 

F  5.826 
+    353.000 

9,806.000 

4-      212,860 

St.  Louis  &  San  F.. 

" 

5 

8,569,000 
6,698,000 

4-  1,093,000 

Seaboard  Air  Line.. 

,, 

394.000 

4-     261,000 

11 

+       42,000 

Southern      .. 

Dec. 

2,958,000 

4-     241,000 

6 

14,753,000 

4-  3,098,000 

Southern  Pacifio   .. 

Nov. 

4,465,000 

—1,038,000 

11 

55,577,000 

4-  7,255,o« 

Union  Pacific 

3,961,000 

-    668,000 

11 

39,694,000 

—  2,312,000 

Wabash 

Dec. 

705,000 

—    423.000 

12 

844,000 

—      421,000 

S  Includes  Wisconsin  Central.    *  Gross  earnings,    t  Surplus,   b  Deficit. 


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and  Published 
[N  1 105 


XLbc 


Jnveetots'  IRevtew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


VoI.XLI.— No  1,052] 

NEW  SERIES. 


rR«|istered  as  tr\ 
L    newipaper,    J 


SATURDAY,  MARCH  2,   ipiS. 


[Price  6(j. 


CONTENTS. 


Passing  Events : — Civil  Service  Estimates  —  National  War 
Bond  Sales  —  Revenue  —  Lord  Rlioiidda's  Defence  — 
Balfour  on  Hertling  — •  "  Effect  of  the  War  on  the 
Economic  Conditions  of  the  United  Kingdom  "  —  British 
Linen  Bank  —  Underground  Electric  Railway  —  Harrod's 
Stores  —  W.  T.  Henlej-'s  Telegraph  —  Mather  and  Piatt 
United  States  Debenture  Corporation  — 
Proprietary   —    East    Pool    and     Agar    (pp. 


—    Bovril 
Broken     Hill 
215-18). 


I.-eading  Articles: — Mr.  Bonar  Thaw's  Appeal  to  the  City  for 
Money  —  The  Warning  in  Russia's  Betrayal  —  Home 
Railway  Results  —  By-the-Way  War  Notes  —  Income-Tax 
Guides  and  f^essons  (pp.  218-23). 

Money  and  Credit  Notes  : — Heavy  Calls  on  Market  Resources 
—  Bank  Return  — •  New  Banking  Combinations  —  British 
Metal  Bank  —  I'rench  Loan  to  Morocco  —  German 
Budget  Statement  —  Exchange  Movements  —  Silver 
(pp.  225-7). 


.\merican  Business  Notes: — Foreign  Trade  in  1917 
to  the  United  Kingdom  —  Increase  in  Imports  - 
Silver  Movements  (p.  230). 

Company  Results  in  Brief  (p.  223). 
Oilfields  Production  (p.  223). 


—  Exports 
Gold  and 


Insurance  News  : — West  of  Scotland  --  Swedish  I'ire  Business 
—  British  Widows  Capital  Reduction  —  German  Post-War 
Plans  —  Scotti>h  Temperance  (p.  230). 

Tea,  Oil,  and  Rubber  : —  Rubber  Market  —  Karauning  (Perak) 
Rubber  and  Tin  Co  —  Yam  Seng  Rubber  Co.  —  Tangkah 
Rubber  Estate  (p.  232). 

Mining  News:— Sheba  Gold  —  Fife  Coal  —  Powell-Duffrvn 
(p.  233). 

What  Balance  Slieets  Tell :  —  Western  Australian  Bank  — 
Imperial  Bank  of  Persia  —  Rylands  and  Sons  —  Linen 
Thread  Co.  — ■  United  States  Trust  Corporation  (p.  233). 

Company  Meetings : — Mather  and  Piatt  —  Bovril  —  United 
States  Debenture  Corporation  —  Wm.  France,  Fenwick, 
and  Co.  (pp.  .234-5). 

The  Week's  Stock  Markets  (pp.  227-8). 

London  Produce  Markets  (p.  229). 

Answers  to  Coi  respondents  (p.  229). 

Public  Income  and  Expenditure  (p.  231). 

Books  and  Pamphlets  (p.  231-2). 

The  Week  in  Mines  (pp.  232-3). 

Dividends  Announced  (p.  235). 

Traffic  Returns  (p.  236). 


NATIONAL  PROVINCIAL  BANK 
OF     ENGLAND,     LIMITED. 

ESTABLISHED  IN   1833. 

SUBSCRIBED    CAPITAL        -        £1S,»00,000. 

CAPITAL— Paid,  £3,000,000  :   Unoalled,    £2,300,000; 

Reserve  Liability,  £10,600,000. 

RESERVE  FUND  (Invested  in   English  Government  Securities), 

£2,100.000. 

DIRECTORS. 

Col.  Sit  CLAUDE  V.  E.  LAURIE, 
Bart.,  C.B.,  D.S.O. 

Tlie  Rt.  Hon.  The  EARL  OF 
LICHFIELD. 

F.  C.  LE  MARCHANT  Esq. 

G.  F.  MALCOLMSON,  Esq. 
SELWYN  R.  PRYOR.  Esq. 
ROBERT  WIGRAM,  Esq. 

Joint  General  Managers. 
D.  J,  11.  CUNN'ICK.Esq.,  F.  ELEY.  Esq.,  and  A.  G.  HOPEWELL,  Esq. 

HEAD    OFFICE:     15,     BiSHOPSGATE,  E.G.  2. 

French    Auxiliary— 

I.I.OYDS  BANK  iriancc)  .nnd   NATIO.NAL  PROVl.NCIAL  liANK  (Prance),   LTD. 


C.    F.    CAMPBELL,  Esq. 
MAURICE  O.  FITZGERALD.Esq. 
CHARLES  R.  GILLIAT,  Esq. 
W.  H.  N.  GOSCHEN,  Esq. 
The  Rt.  Hon.  LORD  INCHCAPE, 

G.C.M.G.,  K.C^.I..  K.C.I.E. 
FRANCIS  A.  JOHNSTON,  Esq. 


THE  COMMERCIAL  BANK  OF  LONDON. 

LIMITED. 

Chairman-I'bn   Right  Hon,  SIR  CHARLES   HOBHOUSE,    HAR.T  , 

P.O.,  M.P. 
Cl'RRENT  ACCOUNTS  opened,  and  every  description  of  Banl<ing 

bit  inefs  transacted.     Bills  discounted,  and  advances  made  to 

custome.s  on  approve  1  secur  ty. 
SPECIAL    FACILITIES    GRANTED    TO    COMMERCIAL    AND 

INDl'STRIAL  UNDERTAKINGS. 
THE  PURCHASE  AND  SALE  01-   SECURITIES  iindertalien,  also 

the  recaipt  of  dividends. 

COUPONS  AND  DRAWN  BONDS  negoliatel. 
DEPOSITS  receive  I  at  call,  or  for  fixed  periods,  at  rates  which  may 

be  ascertained  on  application. 
6,  Austin  Friars,  London,  E.G.  2.  ARTHUR  H.  KINO,  .U*:ia^tr. 


THE  BANK  OF  TAiWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the   Imperial 
Japanese  Government,  1899. 


HEAD   OFFICE 


TAIPEH,    FORMOSA. 


BRANCHES— Tokio,  Kobe,  Osaka,  Araoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c, 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1 S80. 

Subscribed  Capital        Yen  48,000,000 

Capital  Paid  Up Yen  36,000,000 

Reserve  Fund         ..       ..  ..    Yen  22,100,000 

Head  Office:   YOKOHAMA. 
Branches  and  Agencies  at 
Bombay.  Honolulu.  New  Yorlt.  Singapore. 

Calcutta.  Hong  Kong.  Osaka.  Sydney. 

Changchun,  Kobe.  Pelting.  Ttemaui. 

Dairen  (Dalny).  I.os  Angeles.  Rang  ion.  Tokyo. 

Fengtien  (Mukden).       Lyons.  San  Francisco.  Tsiiianfu. 

Hankow.  Nagasaki.  Seattle.  Tsingtau. 

Harbin.  Newchang.  Shanghai. 

The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewliere 
and  tran.-acts  General  Banking  Business. 
Deposits  received  for  fixed  ptriods  at  rates  to  be  obtains  1  on  applicaticn. 
London  Office:  7,  BISHOPSGATE.  E.C.2. 

K.  TATSL'MI,  Manager. 


HONGKONG   AND    SHANGHAI    BANKING    CORPORATION. 

Capital  (all  paid  up) $15000000 

8jerlln|  Reserve,  held  in  London  at  exchange  of  2i.  pet  S  =  £1,S00,000° '        '.'.        .'.        ".    $19,000,000    ^     '      ' 
SlWer  Reserve $18,800,000    »33,t00,000 

Beitnro  Liability  of  Proprietors 818,000,000 

HEAD    OFFICE— HONGKONG.    Chief  Manager -N.    J.    STABB. 
to^^if  i^hir.    1^1,.  ,i?i    'AGENCIES:  — Amoy,    Bangkok,  Batavia,  Bombav,  Calcutta,  Canton,  Colombo,  F>x>chow,  Hankow,  Harbin,   Hongkew    (Shanghai), 
s5°n.i=V  S'„.,,^™'=    *  'i!,      ^^-   '-"PP'il'.  London    Lyons,    Malacca,   Manila,  Nagasaki,   New    Vurk,   Peking,   Penang,  Rangoon,  Saigon,  .San   Franciscv, 
Manghaj,  Singapore,  Sourabaya,  Tientsin,  Tsingtao,  Yloilo,  Yokohama.  •        a         ,  :&<&,»,       r,     , 

HCNBV  i^trcu/irv   I?         «  o  ,  ,.,..  LONDON  COMMITTEE  : 

HENRY  KESWICK,  Esq.,  M.P.  |  WM.  GAIR  RATHBONE,  Esq,  |  ].  R.  M.  SMITH,  Esq.  -  A.  M.  TOWNSEND,  Esq. 

n^,..~.  c  ,  ,.  ^  ^"^  '^"A'^LES   ADDIS,  \  „,„,..,,=  w,  r„r,.t^„  JOHN  MacLENNAN,  Sub-Manager. 

G«4CB0HLRCH  Steeet,  losiDoN,  E.C.  3.  H.  D.C.JONES,  '  I  Managers  m  London,  W.  M.  BLACKIE,  Acoountanl. 


214 


XTbe  Jnvestors'  l^evtew. 


March  a,  1918. 


BANKS. 


CHARTERED  BANK  OF  INDIA, 
AUSTRALIA,  AND  CHINA, 

38,  Bishopsgate,    London,  E.C.  2. 

Incorporated  by  Royal  Charter. 
Capital,  £1,200,000.     Reserye  Fund,  £1,900,000. 

Court  of  Directors 


SIR  MONTAGU  CORNISH 

TURNER,  Chairman. 
SIR    HENRY    S.     CUNNINGHAM, 

K  C  I  E 
THOMAS  CUTHBERTSON,  Esq. 

SIR  ALFRED  DENT,  K.C.M.G.  _ 

HanngarcT.  H.  WHITEHE.^D  and  W.  E.  PRESTON 
Sub-Manager:  }.  S.  BRUCE. 


WILLIAM       HENRY       NEVILLE 

GOSCHEN,  Esq. 
The  Right    Hon.  LORD  GEORGE 

HAMILTON,  G.C.S.I. 
WILLIAM  FOOT  MITCHELL, 

Esq. 

LEWIS  ALEXANDER  WALLACE, 

CEsq. 


Bankers ; 

THE    BANK    OF    ENQLANO. 

THE    LONDON    CITV    AND    MIDLAND    BANK,    Limited. 

TMK    LONDON  COUNTY  &  WESTivllNSrER    BANK.    Limited. 

THE    NATION  'L    PROVINCIAL    B»NK   OF  HNQUND.    Limited. 

THE    NATIONAL    BANK    OP   SCOTLAND,    Limited. 


The  Corporation  buy  and  receive  for  colleciion  Bills  of  Exchange,   grant 
Drafts  and  transact  general  banking  business  connected  with  the  East. 

DEPOSITS  OF  IVIONEV  are  received  for  fixed  perlod-s  on  terms  which 

may  be    ascertained  on  aDDlicatloii.       Interest  payable    half-yearly, 

30th  June  and  3i«t  December. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1S62. 

Authorised  Capital   £4,000  000 

Paid-up  Capital 1,800,000 

Reserve  Fund    2,000.000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario.  Mendoza,  Concordia,  Bahla 
Blanca,  Cordoba.  Tucumiin,  Parana,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires,.  Boca  (Buenos  Aires),  Calle  San'a  FiS  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires)  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agenc\),  Salto 
(Agency).  BRAZIL  —  Rio  de  J.aneiro.  Sao  Paulo,  Santos,  Per- 
nambuco.  Para,  Bahia,  Victoria  Curityba,  Mankos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  Halevy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  a. 


INSURANCE. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 
JSS.TOO.OOO 

or  over  £31,000  for  each  Working  Day. 

A  PRACTICAL  PENSION  POLICY 
FOR    WOMEN    WORKERS. 

"  After    the    heat    and   turmoil   of   the   day. 
The  sheltered   haven  of  the  peaceful  years." 


A  leaflet  entitled 

"AFTER" 

giving  full  particulars  of  a  new  and  attractive 
scheme  will  be  sent  post  free  on  application  to  the 

NATIONAL    PROVIDENT   INSTITUTION, 

48  GRACECHURCH  STREET,  LONDON.  E.C.  3. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Olfice :  15|  Gracechurch  Street,  London,  E.C.  S. 


Capital  Authorised 
Capital  Issued 
Capital  Paid  Up  ... 
Reserve  Fund 


£1.500,000 

1,125,000 

562,500 

600,000 


Branches i 

INDIA.  BURMAH.  CEYLON.    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS.    MAURITIUS. 

The  Bank  buys  and  sells  Bills  of  Exchange,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  l>usiness  in  connection  with 

the  itast,  on  terms  to  be  bad  on  application. 

DEPOSITS  received  for  one  year  at  5  pet  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  current  accounts  interest  is  allowed  at  2  per  cent,  per  annum  on 

daily  balances. 


THE    BANK   OF 
BRITISH    NORTH    AMERICA. 


INCORPORATED  by  ROYAL  CHARTER  1840. 

/i,ooo^ooo. _RESHRyE  FUND  ..  /620,ooo. 


£.C.  3 


Established  1836. 

PAID-UP  CAPITAL 

Head  Office  :-3,'Gi<ACECHURCH  STREET,  LONDON, 

Court  of  Directors, 
Lieut  E.'.EOFFREY  Hon.  A.  R.  MILLS,  M.P 

HOARE,R.N.V.R.    Major  C.  W.TOMKINSON 
F.  LUBBOCK.  G.  fa.  WHATMAN. 


Lt.-Col.  F.  R.  S.  BALFOUR. 
J.  H.  BRODIF,. 
J.  H.MAYNE  CAMPBELL. 
E.  A.  HOARE. 


SPECIAL  FACILITIES  FOR  COLLECTION  OF  BILLS,  4c 


Deposits  received  at  rates  which  may  be  obtained  on  application. 

ALL     KINDS     OF      BANKING      BUSINESS     TRANSACTEC 


FARROWS  BANK  LIMITED 


Authorised    Capital 
Shares    issued 
Shareholders 


£1.000.000 

700.000 

4.000 


All     descriptions 
of   Banking  bus!-  I 
ness,       including 
the  collection  of 
Bills.    Dividends, 
Annuit'es,     etc.,  : 
transacted.        \ 
Foreign      Money  j 
exchanged       and  i 
Drafts    issued   to  1 
all    parts   of  the  I 
World. 


Chairnian  : 
Mr.     THOMAS     FARROW. 

EVERY   DESCRIPTION 

OF  JOINT-STOCK 
BANKING  JRANSAGTED 

Foreign  Banking  business  of 
all  descriptions  undertaken. 

AgentK  throughout  the  World 


Strong  Rooms  for 
the  safe  custody 
ofdecds  and  other 
rroperty  provided 
for  the  uf;e  of  the 
Bank's  customers 

Stocks  and  Shares 

bought    and   sold 

on  behalf  of  cus- 

I  tomers    and    the 

1  public    genera  ly. 


HEAD 


OFFICE:     1.     CHEAPSIDE.      LONDON, 

Branchtts  throughout  the  United   Kingdom. 


E.C.  2 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  1880. 

Authorised  and  Issued  Capital,  £'6,000,000. 

Patd-up  Capital,  £2,000,000;  Reserve  Fund,  £2,000,000;  togethec    £4.003,000 

Reserve  Liability  of  Proprietors 4,000,00a 

Total  Capital  and  Reserves £S,ooo,ooo 

HEAD  OFFICE-        -        -        71 ,  CORNHILL,  LONDON,    E.R.  3. 

DRAFTS  are  granted  on   the   Bank's  Branches  throughout  the   Australiau 
States  and  Domini-tn  of  New  Zealand. 

TELEGI^PHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  are  received  for  fixed  periods  on  terms  which  may  b«  ascertained 
on  application. 


UNION      BANK     OF     CANADA. 

Incorporated  1865.  Head  Office:  WINNIPEG. 

PAID-UP  CAPITAL $s.ooo,oo« 

REST   AND    UNDIVIDED   PROFITS $.{,600,000 

TOTAL   ASSETS    EXCEKD  tM3,ooo.ooo 

The  Bank  has  over  30O  Branches  in  Canada,  and  Agsnts  in  tte  princira' 

cities  in  AmePloa.       General  Banking  Blsinfss  Conducted. 

OapoaltG  Received  (or  fixed  periods  at  favourable  rates,  which  may  bi 

ascertained  on  application  to 

London  OTfieot :  t,  PRINCES  STREET.  E.C.  I,  wti  II.  iUVM«RKIT,  S  W 

Now  York  Atenoy :  «S.  Will  StrMt 


ZTbe  5nveetore'  IRevievv, 


Vol.  XLI.-No.  1,052, 

■•V  S«rl«t. 


SATURDAY,  MARCH  2,  1918.        ("Ifi;*;;:*:,")  P"ce  6d. 


PUBLISHER'S    NOTICES 

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ShillingSi  but  for  this  three  questions  will  be  answered  if 
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letter  the  charge  is  Half-a-Crown  per  question. 

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One  Guinea,  each  list  different. 


Passing   Events. 

Civil  Service  estimates  show  aa  increase  ot  nearly 
^2,ooo,ooo  over  last  year.  The  total  cost  is  set  down 
lor  the  fiscal  year  1918-ig,  excluding  the  revenue  de- 
partments, al  ;£'64,02t),7i8,  and  a  year  ago  it  was 
;^62,s69,i55.  Adding  the  cost  of  the  revenue  depart- 
trients,  viz.,  £^3,597,918  for  Customs  and  Excise, 
;^2,795,36o  for  the  Inland  Revenue,  and  ^-26, 141,304 
for  the  Post  Office,  we  get  an  aggregate  of 
;^95i744'30o>  which  compares  with  ;^93, 798,208  a 
year  ago,  and  there  will  be  more  to  follow.  The 
Customs  and  Excise  charges  arc  only  about  ^55,000 
larger,  but  the  Inland  Revenue  costs  have  gone  up 
about  £;'250,ooo,  and  that  of  the  Post  Office  by  about 
;^  160,000.  Two  new  items  emerge — yr30o,ooo  for  ex- 
penses under  the  Reform  .A.ct,  and  ^114,297  for  the 
Overseas  Trade  Department.  Also  ^25,000  will  be 
assigned  to  a  Government  Hospitality  Fund,  against 
nothing  in  the  year  now  expiring.  To  the  Ministry  of 
Lalxiiir,  Employment  Exchange,  and  Insurance,  and 
Buildings  in  Great  Britain  is  assigned  ;^37i,ioo,  or 
more  than  twice  the  last  grant,  and  substantial  in- 
creases in  expenditure  on  public  buildint;s  in  Great 
Britain,  rates  on  Government  property,  the  three  Local 
Government  Boards,  stationery  and  printing,  are  also 
shown.  "  Stationery  and  printing  "  alone  take 
^1,170,734.  The  expenditure,  however,  on  the  De- 
partment of  Scientific  and  Industrial  Research  is  re- 
duced from  ;£"i, 038,050  to  ,^148,350,  and  no  doubt  it  is 
necessary  to  make  an  appearance  at  least  of  economy 
ni  sornc  directions,  but  the  total  cost  of  the  Civil  SJfer- 
vices  is  now  greater  than  the  whole  expenditure  of  the 
nation  a  quarter  of  a  century  ago. 

Last  week's  sales  of  National  War  Bonds  of  the 
Bank  of  England  issue  brought  in  /;'2 1,272, 094.  This 
was  ^3-240,532  more  than  the  receipts  of  the  preced- 
ing week,  although  the  number  of  applicants  showed  a 
decrease  of  2,734  at  12,500.  This  shows  that  the  rich 
or  capitalist  class  is  now  finding  most  of  the  money. 
Up  to  the  date  given  the  number  of  applications  has 
been  3:12,175,  and  the  money  subscribed  jf.-^gi, 195,813. 
Throueh  the  Post  Office  in  the  week  ended  February  i5, 
the  applications  were  only  31,000,  a  decrease  of  10,700 
on  the  preceding  week,  and  the  amount  applied  for  was 
;6243,ooo  down  at  ^749,000.     Up    to    date,  however, 


753,300  applications  have  been  received,  implying 
;^i8,433,ooo  subscribed,  so  that  the  aggregate  of  War 
bonds  thus  far  sold  has  been  ^409,629,000.  Add  the 
War  Savings  contribution,  which  up  to  February  16 
aggregated  154,270,306  certificates  sold,  2,373,458  hav- 
ing been  disposed  of  in  the  latest  week,  and  which 
means  that  ;£'i  19,539,490  has  been  received  by  the 
Treasury,  and  we  get  a  total  of  ;^529, 198,000  in  all 
provided  for  the  current  expenditure  of  the  Govern- 
ment out  of  these  various  forms  of  debt ;  quite  a  good, 
and  in  the  circumstances  satisfactory,  but  by  no  means 
adequate  result,  especially  when  we  remember  that  it  is 
not  all  cash. 


Last  week's  expenditure  came  to  ^48,374,462,  of 
which  ;^45, 500,000  was  for  supply.  These  aggregates 
represent  respectively  ;^6, 91 1,000  and  ;^6,500,ooo  per 
diem,  and  the  week's  receipts  from  taxation  and  mono- 
polies were  only  ;^23,047,o85.  The  only  has  refer- 
ence to  nothing  but  the  magnitude  of  the  expenditure, 
for  in  actual  fact  the  income  from  taxes  and  State 
monopolies  this  fiscal  year  has  been  magnificent.  The 
total  estimated  income  of  the  year,  as  foreshadowed  in  , 
the  Budget,  was  barely  /'570,ooo,ooo,  and  already 
with  six  weeks'  receipts  still  to  come  in,  the  Treasury 
has  netted  ;^i6,ooo,ooo  more  than  the  Budget  estimate. 
If  the  receipts  continue  on  the  same  scale  for  what 
remains  of  the  current  Budget  year,  then  the  revenue 
will  have  exceeded  anticipations  by  more  than 
^150,000,000.  It  is  magnificent,  and  offers  a  great 
stimulus  to  confidence  in  the  ultimate  complete  triumph 
of  the  Allies,  but  it  is  not  nearly  enough.  Last  week, 
however,  ;^"22, 231,000  was  received  from  the  sales  of 
Xational  War  Bonds,  as  well  as  p^i, 300,000  from  War 
Savings  certificates,  and  £716,495,278  came  from 
"  other  "  war  debt  sources,  so  that  altogether 
,{^97'523<363  passed  through  the  week's  accounts  as 
revenue,  and  it  was  all  wanted.  Indeed,  the  Ex- 
chequer balances  were  reduced  by  nearly  ;^94.,ooo  to 
;^i5,q65,528  at  the  end  of  the  week.  The  Ex- 
chequer paid  off  more  than  ;^3, 000,000  Treasury  bills 
in  excess  of  the  new  ones  discounted  ;  that  is  to  say, 
;^37,850,ooo  of  Treasury  bills  were  repaid,  together 
with  ;^io,ooo,ooo  of  temporary  advances,  ;^4.37t748  of 
War  Loan  and  Exchequer  bonds,  /■255,ooo  of  expendi- 
ture certificates,  in  addition  to  ^500,000  devoted  to 
sustaining  the  market  for  War  Loan  stock.     Out  of  the 


2l6 


Zbc  Jnveetors'  Tf^evievv. 


Makcu  2,  i^ib. 


total  income  last  week  over  ;^i9,ooo,ooo  came  from 
income-tax,  excess  profits  duty,  &c.,  the  property  and 
income  tax,  including  super-tax,  having  alone  produced 
;^: 4,982,000.  Altogether  these  taxes  and  the  excess 
profits  duty,  including  munitions  levy,  have  furnished 
;^37o,ooo,ooo  of  the  total  revenue  of  ;^586,8s8,ooo, 
and  if  we  could  count  on  such  figures  after  the  war  is 
over  we  might  go  011  our  lavish  way  rejoicing.  The 
mora!  of  all  this  is — subscribe  and  su!)scribe  and  con- 
tinue to  subscribe  every  available  shilling  that  can  be 
saved  and  spared  to  the  National  War  Loan,  to  make 
the  victory  complete.  It  is  new  money  that  the  country 
needs,  and  not  merciy  the  conversion  of  Treasury  bills 
into  these  National  War  Bonds.  That  conversion  in- 
creases the  debt  burden  without  adding  a  penny  to  the 
means  at  the  disposal  of  the  Exchequer. 


Lord  Rhondda  defended  himself  with  his  usual  ability 
and  with  suct-ess  against  the  criticisms  of  his  handling 
of  our  food  supply.  The  most  injurious  charge  made 
against  him  was  that  he  had  caused  a  shortage  of  sup- 
plies by  fixing  maximum  prices,  and  to  this  his  answer 
was  first  of  all  that  maximum  prices  had  to  be  fixed 
because,  if  they  had  been  left  free  to  take  their  own 
course,  they  would  have  risen  to  such  heights  as  would 
have  brought  famine  to  the  doors  of  a  large  proportion 
of  the  population,  and  generated  a  seething  discontent 
which  might  have  threatened  the  stability  of  our  insti- 
tutions. He  is  right  beyond  a  doubt.  He  went  on  to 
insist  that  no  check  has  really  been  put  on  the  produc- 
tion of  food  by  fixing  scales  of  prices,  for  the  utmost 
care  had  been  taken  to  deal  fairly  with  the  producer, 
which  is  true.  And  he  was  quite  right  also  in  pointing 
out  that  the  Government  could  not  ration  meat  or  any 
other  commodity  unless  they  controlled  distribution,  and 
in  regard  to  butcher's  meat  they  could  not  control  dis- 
tribution unless  they  made  the  return  equally  good  to 
the  farmer.  The  usual  laissez  jaire  economics  had  to 
be  thrown  aside,  and  to  some  extent  the  fight  of  the 
Government  against  extreme  prices  and  to  ensure  ade- 
quate supplies  had  involved  the  authorities  in  great 
l)usiness  transactions.  They  had  become  buyers  and 
distributors,  monopolists  even,  for  the  time  being,  in 
order  to  maintain  supplies  and  furnish  them  to  con- 
sumers at  reasonable  prices.  This  may  have  to  be  the 
policy  more  and  more.  In  his  answer  to  Mr.  Herbert 
Samuel's  criticism  on  Wednesday,  Mr.  Bonar  Law  de- 
clared that  a  large  portion  of  the  great  increase  shown 
in  public  expenditure  under  the  present  Government 
was  ascribable  to  this  one  cause  alone.  The  Govern- 
ment has  become  the  sole  purveyor  cf  many  essential 
commodities,  and  events  seem  to  be  tending  towards  a 
position  which  will  constitute  it,  perhaps,  the  sole 
owner  of  land  throughout  the  three  kingdoms.  In  this 
last  resp>ect  the  Sinn  Feiners  in  Ireland  may  only  be, 
with  the  usual  Gaelic  promptitude,  marching  a  day  or 
two  ahead  of  the  present  Ministry.  It  is  being  com- 
pelled towards  revolution,  whether  it  likes  the  prospect 
or  not. 


In  the  course  of  Wednesday's  debate  Mr.  Balfour 
dealt  with  Count  Hertling's  latest  harangue  in  his  best 
style.  Not  only  was  he  lucid— he  is  always  that — but 
he  spoke  with  a  stern  directness  not  always  his,  and 
once  again  told  the  Germans  that  they  were  not  to  be 
trusted  at  all,  and  tliat  they  could  not  be  negotiated 
with  as  long  as  they  clung  to  the  property  they  had 
^tolen.  "  I  am  convinced,"  he  declared,  and  begged 
the  House  to  mark  his  words,  "  that  to  begin  negotia- 
tions unless  you  see  your  \\ay  to  carrying  theni  through 
successfully  would  be  to  commit  the  greatest  crime 
against  the  future  peace  of  the  world."  That  is  em- 
phatically our  opinion,  and  it  is  a  falsetto  kind  of 
humanitarianism  which  would  uphold  any  other  view. 
Therefore  we  hope  speechi.'^ying  directed  towards  bring- 
ing reason  to  bear  on  the  Germans — or  on  Germany's 
military  masters — will  no  longer  be  indulged  in  by  our 
statesmen.  It  can  lead  to  no  good  result  at  present. 
As  a  writer  in  Thursday's  Daily  Mail  says,  the  German 
people  have  completely  lost  their  mental  balance.  They 
are  as  devoid  of  ideas  of  right  and  wrong  of  the  mo^t 


rudimentary  description  as  the  most  primitive  of 
.•\frican  savages ;  up  in  the  skies  one  day  and  down  in 
the  depths  the  next  according  as  the  news  doled  out  to 
them  looks  good  or  the  reverse.  What  can  we  do  with 
such  unhappy  products  of  systematic  miscducation  and 
military  tyranny?  We  can  only  leave  them  to  their 
fate ;  go  on  killing  those  who  can  be  induced  to  throw 
their  lives  away  to  serve  their  oppressors'  ends,  or  who 
perpetrate  crimes  the  Dyaks  of  Borneo  would  not 
stoop  to.  So  great  is  the  peril  in  pursuing  any  other 
course  that  those  who  seek  to  induce  us  to  negotiate 
now  have  become  public  enemies,  and  if  they  persist 
will  have  to  be  treated  as  such. 


Mr.  Edgar  Crammond's  sec«nd  "  Cantor  "  lecture  at 
the  Society  of  Arts  on  "  The  Effect  of  the  War  on  the 
Economic  Conditions  of  the  United  Kingdom  "  was  an 
exceptionally  able  and  interesting  review  of  some  of  the 
country's  achievements  since  we  were  drawn,  all  unpre- 
pared, mto  the  world  v-ar.  The  Empire  entered  upon 
the  war  with  almost  unmeasurablc  resources  of 
ecoriomic  power,  but  unfortunately  they  were  not  or- 
ganised, and  the  problem  of  transforming  the  entire 
fabric  of  our  economic  life,  with  all  its  international 
complexities  and  ramifications,  was  a  formidable  one. 
We  are  glad  to  find  that  Mr.  Crammond  comes  to  the 
conclusion  that  on  the  whole  it  has  been  achieved  with 
quite  astonishing  success.  Notwithstanding  the  vast 
withdrawal  of  man  power  for  naval  and  military  ser- 
vice, the  production  of  the  country  had  not  only  been 
maintained,  but  actually  increased.  The  United  King- 
dom was  the  only  belligerent  which  had  increased  its 
production  of  food,  and  the  lecturer  estimated  that 
while  the  value  of  the  agricultural  output  in  1908  was 
about  208  millions,  last  year  it  was  approximately  400 
millions,  but,  of  course,  this  is  partly  accounted  for  by 
the  rise  in  prices.  Steel  production  was  about  seven 
million  tons  before  the  war,  and  it  had  risen  to  ten 
millions  With  regard  to  coal,  in  spite  of  the  fact  that 
over  282,000  miners  had  been  withdrawn,  the  output 
for  T917  was  247  million  Ions,  as  compared  with  289 
millions  in  1913,  and  the  home  consumption  had  risen 
from  191  millions  to  200  millions,  while  there  was  an 
increase  of  58  per  cent,  in  the  Board  of  Trade  units  of 
electricity  sold  in  the  jear  to  March  31  last,  as  com- 
pared with  the  year  to  March,  1914.  Of  course,  the 
balance  of  foreign  trade  had  shifted  heavily  against  this 
country  owing  to  our  exceptionally  large  imports.  The 
excess  of  the  latter  for  the  period  from  .August,  1914, 
to  December,  1917,  amounted  to  1,300  millions,  an 
average  of  372  millions  per  annum,  as  against  an 
average  of  134  millions  for  the  three  years  before  the 
war.  Mr.  Crammond,  however,  was  careful  to  point 
out  that  in  addition  to  carrying  two-thirds  of  our  own 
seaborne  trade  and  half  the  sea-borne  trade  of  the 
world,  we  also  financed  and  insured  considerably  more 
than  half  the  world's  trade,  and  the  total  marine  pre- 
miums for  1917  would  probably  reach  too  millions, 
against  30  millions  in  1913.  so  that  the  "  invisible  " 
imports  and  exports  are  doubtless  correspondingly 
greater. 

That,  however,  does  not  come  home  to  the  ordinary 
citizen,  and  for  the  great  majority  of  people  the  rise  in 
tjie  cost  of  living  is  ihe  most  important  factor.  Mr. 
Crammond  very  rightly  dismisses  the  theory  that  the 
rise  is  due  to  "  inflation  of  currency."  He  did  not 
elaborate  this  to  the  extent  that  he  might,  but  as  every- 
one knows  who  has  looked  into  these  questions,  the 
cheque  is  infinitely  greater  than  the  Bank  or  Treasury 
note.  Our  paper  currency  has  risen  it6  millions,  or 
^2  per  cent.,  but  even  the  United  States  ratio  is  up  46^ 
per  cent,  while  Germany  has  advanced  510  perf 
cent.,  and  Russia,  with  spurious  notes,  &o.,  has 
brought  the  value  of  the  rouble  down  to  just  about  the 
same  as  wastepaper.  The  advance  in  prices  has  been 
mainly  produced  by  intensification  of  demand  and  an 
obstruction  of  supplies.  Wholesale  prices  have  in- 
creased by  128  per  cent.,  and  although  Lord  Rhondda 
declares  that  the  cost  of  living  is  only  50  per  cent, 
higher,    we   are   greatly    surprised    to    find    that     Mr. 


March  2,  1918. 


ILbc  Jnvestovs'  IRevlevv, 


217 


Crammond  not  only  accepts  this  view,  but  endorses  it. 
Everyone  with  the  most  rudimentary  knowledge  ol 
business  must  be  perfectly  aware  that  wholesale  prices 
are  the  fundamental  basis  of  costs,  and  it  is  also  abso- 
lutely unquestionable  that  the  wholesaler  makes  only  a 
trifling  profit,  ranging  usually  from  1  lo  il  per  cent.- - 
rarely  more  unless  he  has  been  particularly  fortunate  in 
his  purchases.  But  before  the  retailer  can  hand  out 
the  goods  to  the  consumer  there  are  all  sorts  of  charges 
to  be  added — carriage,  loss  in  distribution,  rent  and 
taxes,  special  messengers,  carts  or  motors,  and  all  the 
rest.  What  Lord  Rhondda  means  when  he  says  that 
the  costof  living  is  only  50  per  cent,  up  is  just  a  piece 
of  stupid  camouflage.  The  State  is  subsidising  (wisely 
or  otherwisely)  the  loaf  to  the  extent  of  2jd.  per  quar- 
tern, and  is  going  to  pay  the  farmers  40  or  50  millions 
a  year  to  do  what  their  business  instincts  would  compel 
them  to  do  in  any  case.  And  Lord  Rhondda's  price 
control  has  been  more  conspicuous  in  reducing  supplies 
than  anything  else — so  much  so,  indeed,  that  a  jocular 
member  of  the  House  of  Commons  suggested  the  other 
day  that  if  he  would  only  fix  a  price  for  rats  these  pests 
would  immediately  disappear  ! 

One  of  these  days  probably  the  Scotch  banks  will- 
have  to  consider  the  question  of  combining  in  self- 
defence,  but  at  present  they  seem  to  get  along  comfort- 
ably enough,  and  the  British  Linen,  established  over 
170  years  ago,  does  not  show  any  signs  of  decrepitude 
judging  by  the  balance-sheet  at  January  15  just  issued. 
Deposit  and  current  accounts  have  increased  3!  mil- 
lions to  ;^22,75o,ooo,  and  there  is  an  expansion  of 
;^"440,0D0  in  the  note  circulation  to  ;^2,334,c)oo — rather 
a  remarkable  feat  considering  the  way  "  Bradburys  " 
have  been  thrust  on  the  public.  Drafts,  &c. ,  have  in- 
creased ;£^630,c)oo  to  ;^925,c>oo,  but  acceptances  are 
^2-o,oo6  lower  at  ^^545, 000,  the  nett  result  being  that 
the  balance-sheet  total  is  ;^4, 320,000  up  at 
;^,"29,2o8,ooo.  Against  this  sum  the  bank  holds  cash 
and  investments  .""or  13J  millions,  an  increase  of 
;^6oo,ooo,  while  discounts  and  advances  have  risen  4^ 
millions  to  i2i  millions.  So  we  find  that  the  nett  pro- 
fits for  the  year  amounted  to  ;^2q6,200,  an  increase  of 
;£,30,ooo,  and  ;^26,ooo  more  was  brought  in.  Ahev 
again  paying  16  per  cent.,  ;^7o,ooo  against  ;^io,ooo 
is  written  off  bank  premises,  and  ;!f 50,000  is  replaced 
lo  reserve,  whereas  last  year  ;^i 25,700  had  to  be 
appropriated  for  depreciation,  of  which  ;^5o,ooo  was 
taken  from  reserve.  There  then  remains  ;^8i,6oo,  or 
;£'26,ooo  more,  to  be  carried  forward,  and  the  total 
reserves  are  now  ^£^'1,331,600,  against  a  capital  of 
;^,"i,25o,ooo.     Let  it  pass  at  that. 


£12,000,  raising  it  to  £'i, 474,000,  and  after  providing 
the  regular  8  per  cent,  dividend  on  the  ordinary  shares 
the  proportion  of  the  balance  due  to  the  latter  is 
^18,000  higher  at  ;^72,ioo.  This  allows  of  an  addi- 
tional dividend  of  7  per  cent.,  the  same  as  last  year, 
and  as  ;^'i7,c)oo  more  was  brought  in,  the  carry  forward 
is  increased  by  ;^35,ooo  to  ;^69,430.  The  proportion 
belonging  to  the  T'ounders'  Shares  Co.,  Ltd.,  is  also 
£72,100,  and  the  dividend  is  raised  from  35  per  cent, 
to  43i  per  cent.,  while  £3,200  against  £90  is  carried 
forward.  Resolutions  for  the  conversion  of  the 
founders'  shares  were  passed  last  September,  and  a 
Bill  to  enable  Harrod's  Stores,  Ltd.,  to  rearrange  its 
capital  is  now  before  Parliament.  Except  that  stocks 
have  risen  £180,000  to  £815,000,  the  changes  in  the 
balance-sheet  do  not  call  for  remark,  but  the  company 
will  undoubtedly  be  all  the  better  for  getting  rid  of  the 
incubus  of  the  founders'  shares. 


The  Underground  Electric  Railways  Co.  of  London, 
Ltd.,  is  purely  a  holding  company,  with  investments 
which  figure  in  the  balance-sheet  at  £14,620,000.  We 
have  already  dealt  with  the  reports  of  the  London 
General  Omnibus  and  the  Tube  companies  which  it 
controls,  and  it  is  therefore  only  necessary  to  mention 
that  the  total  income  last  year  was  £606,730,  a  de- 
crease of  £46,630  as  compared  with  1916.  This 
falling-off  is  mainly  due  to  the  smaller  dividends  paid 
by  the  General  Omnibus  and  the  Associated  Equipment 
Co.,  but  the  other  subsidiaries  also  produced  rather 
less,  and  there  was  a  decrease  of  £11,000  in  sundry 
receipts.  Consequently,  the  di\idend  on  the  6  per  cent, 
income  bonds  has  to  be  reduced  from  5  per  cent,  to 
4  per  cent.,  and  the  balance  forward  is  practically  un- 
changed at  £31,140.  It  is  stated  that  extensions  of 
the  Associated  Equipment  Co.'s  factory  were  carried 
out  during  the  year,  thereby  enabling  it  largely  to  in- 
crease its  output  of  motor  vehicles,  but  the  full  benefit 
will  only  be  obtained  in  the  current  and  subsequent 
vears. 


In  the  year  to  January  31  Harrod's  Stores,  Ltd.,  for 
the  first  time  made  a  gross  profit  of  over  a  million,  the 
exact  figure  being  £1,016,000,  or  an  increase  of 
£130,000.  Nett  profit,  after  providing  for  repairs  and 
renewals,  interest,  &c.,  amounted  to  £282,300,  or 
£47,000  more.    The  reserve  fund  gets  £16,000,  against 


A  few  }ears  ago  W.  T.  Henley's  Telegraph  Works 
Co.,  Ltd.,  started  a  branch  to  manufacture  and  deal 
in  motor  tyres,  and  the  directors  are  of  opinion  that 
the  time  has  arrived  to  convert  this  business  into  a 
separate  organisation.  It  is  therefore  proposed  to  form 
a  tyre  company  with  a  share  capital  of  £200,000,  which  is 
approximately  the  amount  that  the  parent  concern  is 
employing  in  the  tyre  business.  All  the  shares  will  be 
held  by  the  original  company,  which  will  thus  retain 
complete  control,  but  in  order  that  the  capital  shall  more 
nearly  represent  the  actual  amount  employed  in  the 
business,  the  directors  recommend  that  the  ordinary 
share  capital  be  increased  from  £200,000  to  £400,000, 
and  that  the  new  shares  be  issued  as  a  bonus  to  the 
shareholders  in  proportion  to  their  holdings.  At  the 
same  time,  it  is  proposed  to  convert  the  existing  £5 
shares  into  five  shares  of  £1  each.  The  bonus  is  a 
handsome  one,  and  the  splitting  of  the  shares  will  help 
to  popularise  them  as  they  are  too  "heavy  "  at  their 
present  price.  No  opposition,  therefore,  need  be  antici- 
pated from  the  proprietors,  and  we  can  conceive  of  no 
reason  why  the  Treasury  should  object,  although  occa- 
sionally its  decision  on  such  matters  passeth  under- 
standing. 


In  1916  Mather  and  Piatt,  Ltd.,  showed  an  increase 
of  £67,000  in  nett  profits,  and  it  is  not  very  surprising 
that  there  should  be  a  decline  of  £2,500  to  £168,500  in 
respect  of  last  year.  The  amount  brought  in  was 
£11,000  up  at  £86,500,  and  after  placing  £35,000  to  a 
fund  for  the  equalisation  of  income-tax  against  £30,000 
placed  to  reserve  last  year,  the  dividend  on  the  ordinary 
shares  is  again  made  up  to  17I  per  cent.,  and  the 
carry  forward  is  increased  by  ;^3,5oo  to  £95,000.     It 


THE    DIRECTORS    OF 

LLOYDS  BANK 
LIMITED 

desire    to    call    the    attention    of 

their     customers     and    others    to 

the    advisability   of   investing   all 

available  moneys  in 

NATIONAL 
WAR    BONDS 

and   of   applying    further   savings    in 
the  same  way. 

In  the  Savings  Bank  Department  small 

sums  can  be  accumulated  at  interest 

until  they  reach  the  minimum  required 

for  purchasing  WAR    BONDS. 


-2i8 


al)e  Jnvestors'  TReview. 


March  2,  1918. 


is  slated  that  the  company's  assets  in  Russia  have  been 
written  down  to  the  present  nominal  rate  of  exchange, 
but  we  are  afraid  there  will  be  a  loss  to  face  here  until 
things  settle  down,  and  that  may  be  a  long,  long  way 
ahead.  However,  the  company  has  large  reserves,  and 
it  is  in  a  strong  financial  position,  so  that  there  is  no 
reason  to  be  uneasy  about  the  future,  in  spite  of  any 
temporary  reverses  that  may  have  to  be  faced. 


In  the  report  of  Bovril,  Limited,  for  the  year  191 7 
we  are  told  that  the  sales,  excluding  Red  Cross  orders 
and  Government  contracts,  show  a  large  increase  over 
any  previous  year.  Gross  profits  were  ;^33,ooo  up  at 
;£:420,ooo,  but  owing  to  the  all-round  increase  in  the 
cost  of  manufacture  nett  profits  were  only  ^1^4,400 
larger,  and  as  the  balance  brought  in  was  less  the 
amount  available  is  ;£i^4,C)00  down  at  ;^i3i,90o.  Busi- 
ness, however,  has  been  so  good  that  the  directors  feel 
justified  in  raising  the  dividend  on  the  deferred  shares 
from  3 J  per  cent,  to  4  per  cent.,  tax  free,  and  although 
this  necessitates  a  reduction  of  ;^8,ooo  in  the  carry  for- 
ward (now  ;^<),38o)  the  increase  seems  perfectly  justi- 
fied, as  ;^35,ooo  is  again  placed  to  reserve,  raising  it  to 
the  substantial  amount  of  ;£'3rx3,c)00.  There  is  nothing 
in  the  balance-sheet  to  make  any  comment  on,  but 
although  the  capital  (a  legacy  from  old  days)  is  heavy, 
the  position  looks  sound  endugh,  and  there  cannot  be 
any  doubt  that  the  conipany  has  established  itself  on  a 
very  firm  and  permanent  basis  as  far  as  its  hold  on  the 
public  is  concerned. 


In  spite  of  the  difficult  conditions  which  have  pre- 
vailed, the  United  States  Debenture  Corporation,  Ltd., 
managed  to  increase  its  gross  income  in  the  year  to 
January  31  by  ;^9,ooo  at  ^^113,800,  and  the  nett  re- 
venue, including  about  the  same  amount  brought  in,  is 
;^7,ooo  up  at  ;£^59,3oo.  The  whole  of  this  gain  is 
added  to  the  carry  forward,  which  is  thus  raised  to 
;^io,7oo,  and  the  dividend  oh  the  ordinary  shares  re- 
mains at  10  per  cent,  for  the  year.  Changes  in  the 
securities  held,  which  are  ;£'94,ooo  up  at  ;^2,o73,oc>o, 
have  resulted  in  a  surplus  on  realisation  of  ;^20,300, 
which  has  been  applied  in  writing  down  certain  invest- 
ments. The  valuation  of  these  on  January  31  neces- 
sarily shows  a  depreciation,  but  to  a  smaller  extent  than 
last  year,  and  this  is  more  than  covered  by  the  reserve 
fund.  A  table  of  tfie  distribution  of  investments  shows 
that  32.9  per  cent,  are  in  Great  Britain,  against  26.3 
per  cent,  last  year,  while  the  holdings  in  the  United 
States  have  fallen  from  19.2  per  cent,  to  16.7  per  cent. 


It  appears  from  the  cabled  summary  of  the  meeting 
of  the  Broken  Hill  Proprietary  Co.  at  Melbourne  that 
the  main  cau.ses  of  the  increased  profits  last  year  were 
the  larger  shipments  of  zinc  concentrates,  and  the  rise 
in  silver,  and  not  the  development  of  the  steel  business. 
The  chairman's  speech,  as  cabled,  however,  does  not 
appear  fully  to  account  for  the  big  orders  to  buy  the 
shares  which  came  from  Australia  during  the  week- 
end, and  which  has  caused  the  price  to  rise  to  the 
highest  level  recorded  for  several  years.  A  very  grati- 
fying account  was  given  of  the  position  in  regard  to 
the  steel  undertaking,  for  the  initial  difficulties  have 
been  passed,  and  the  industry  is  now  established  on  a 
^  firm  basis.  Expenditure  on  the  iron  and  steel  works 
has  now  reached  ;^2,58i,7oo.  It  had  been  arranged 
to  take  over  the  shipbuilding  yards  of  the  New  South 
Wales  Government  at  Walsh  Island,  but  on  representa- 
tions being  made  by  the  Federal  Crt>vernment  that  such 
a  scheme  would  interfere  with  the  success  of  their  own 
shipbuilding  programme,  the  project  was  abandoned. 

An  arrangement  has  been  come  to  between  the 
Ministry  of  Munitions  and  the  East  Pool  and  Agar, 
Ltd.,  for  increasing  the  latter's  output  of  tin  concen- 
trates for  iqi8,  and  if  necessary  for  subsequent  years 
of  the  war,  to  double  the  output  for  1917.  The  nett 
earnings  received  by  the  company  in  excess  of  the 
quantity  of  concentrates  sold  in  1017  will  be  invested 
in  Government  securities,  which  will  not  be  distributable 
by  way  of  dividends,  but  may  be  used  to  finance  ex- 


penditure on  the  mine  and  its  equipment.  After  the 
war  the  directors  will  be  able,  if  they  choose,  to  in- 
crease the  capital  for  the  purpose  of  issuing  bonus 
shares  in  respect  of  these  moneys  invested.  In  con- 
sideration of  this,  the  Ministry  of  Munitions  has  under- 
taken to  pay  any  excess  profits  duty  on  any  increase  in 
profits  received  by  the  company  over  the  profits  for 
1917.  This  arrangement  is  part  of  a  scheme  for  in- 
creasing the  home  production  of  tin. 


Mr,   Bonar    Law's  Appeal   to  the  City 
for  Money. 

That  indefatigable  body  of  advertisement  agents,  the 
.Aldwych  Club,  organised  a  meeting  on  Tuesday  last 
to  further  a  "  boom  "  sale  of  National  War  Bonds  in 
London.  It  was  held  with  a  view  to  give  a  good  hoist 
to  what  is  called  the  "  Business  Men's  Week  "  in  the.se 
bonds,  and  was  attended  by  Mr.  Bonar  Law,  the  Chan- 
cellor of  the  Exchequer.  Lord  NorthclifTc  presided, 
and  the  gathering  of  notable  City  men,  with  others, 
was  large  and  influential.  It  included,  among  others, 
the  following  : — The  Lord  Mayor  of  London,  Mr. 
Grafton  Cushing,  Lord  Inchcape,  Lord  Furness,  Lord 
Cunliffe,  Sir  Edward  Holden,  Sir  Felix  Schuster,  Sir 
R.  M.  Kindersley,  Sir  William  Goschen,  Sir  Herbert 
Hambling,  Sir  Owen  Philipps,  M.P.,  the  Lord  Mayor 
of  Sheffield,  -Sir  Thomas  C.  Dewey,  the  Lord  Mayor  ot 
Norwich,  the  Lord  Mayor  of  Hull,  Captain  and  Sheriff 
Blades,  Major  the  Hon.  Waldorf  Astor,  M.P. ,  Sir 
George  Paish,  Sir  H.  Dalziel,  M.P.,  Mr.  Sheriff  Hep- 
burn, Sir  Woodman  Burbidge,  Sir  Reginald  Brade,  Sir 
Gerald  Ryan,  Mr.  E.  Roger  Owen,  Sir  G.  Touche, 
M.P.,  Mr.  R.  Holland  Martin,  Sir  Vincent  Caillard, 
Mr.  Kennedy  Jones,  M.P.,  Sir  E.  M.  Mountain,  Sir 
Hedley  Le  Bas,  Sir  Charles  Wakefield,  and  Sir  William 
Plender. 

The  purpose  of  the  assemblage  was  to  lunch  and 
hear  a  speech  from  Mr.  Law.  He  made  a  good  one. 
There  is  an  air  of  frankness  about  him  which  always 
captivates.  He  generally  takes  the  right  line,  too,  and 
avoids  mere  smooth  phrases  designed  to  conceal  the 
real  position.  We  are  fighting  against  a  nation  which 
has  flung  all  ordinary  checks  on  savagery  to  the  winds, 
and  the  fight  is  to  the  death,  .^nd  the  war  is  to  be 
won,  not  merely  by  our  valiant  soldiers  in  the  field,  but 
now  well-nigh  as  much  by  those  left  behind  to  work, 
to  pay,  and  to  suffer.  It  is  going  to  be  a  long  fight 
still,  just  because  it  is  whole  enslaved  nations  that  are 
leagued  against  us,  and,  therefore,  not  only  is  it  neces- 
sary to  find  much  money  to  enable  us  effectively  to 
continue  the  blockade  of  the  enemy  on  land  and  sea, 
but  equally  so  to  increase  the  volume  of  the  supply  by 
systematic  economy. 

Mr.  Law  gave  his  vote  for  what  he  calls  week  to 
week  lending,  and  we  admit  that  his  contention  was  to 
the  purpose,  also  that  much  has  been  accomplished. 
If  he  can  get  the  necessary  money  by  attracting  the 
savings  of  the  community  day  by  day  and  week  by 
week,  the  difTiculties  attending  the  issue  of  enormous 
loans  may  be  in  great  measure  avoided,  or  at  least  post- 
poned, and  every  effort  is  now  being  made  to  ensure 
success  for  this  method  of  borrowing.  It  is  our  duty 
to  give  the  men  in  charge  of  the  campaign  the  utmost 
supf>ort. 

Next  week  something  tremendous  is  aimed  at.  It  is 
to  be  the  "  Business  Men's  Week  "  for  the  metropolis. 
The  attack  has  been  organised  with  help  of  the  great 
advertising  fraternity  of  the  Aldwych  Club.  They  are 
out  in  full  strength  to  secure  at  one  sweep  at  least 
;^  100,000,000  from  London — or  for  say  about  enough 
to  meet  the  war  expenditure  for  a  fortnight.  Their  cam- 
paign has  been  going  on  all  over  the  kingdom,  outside 
Ireland,  for  months  past,  and  up  to  the  end  of  last  week 
it  had  brought  in  upwards  of  ;^390,ooo.ooo.  Even 
allowing  for  the  conversions,  it  has  been  a  quite  notable 
success,  which  we  hope  will  continue. 

But  in  proportion  as  this  success  is  great  is  it  not 
likely  to  interfere  with  the  continued  fruitfulness  of 
the  week  to  week  lending  represented  by  War  Savings 
certificates,  and  by  the  Post  Office  issue  of  small  de- 


March  2,  igi8. 


Zbc  investors'  IReview. 


219 


nominations  of  National  War  bonds?  What,  in  other 
words,  must  happen  when  this  great  campaign  of 
oratory  and  advertising  agents'  "push  "  comes  to  an 
end?  Surely  hundreds  of  thousands  of  investors  will 
have  again  tied  themselves  up,  as  was  done  last  year 
by  the  War  Loan,  and  their  savings  for  some  time  to 
come  will  be  mortgaged  to  the  detriment  of  that  con- 
tinuous stream  of  small  moneys  from  which  the  Chan- 
cellor of  the  Exchequer  expects  so  much?  It  is  a 
problem  of  great  difficulty.  Has  it  been  tackled  in  a 
statesmanlike  way  ?     We  must  wait  and  see. 

Mr.  Law  went  on  to  speak  in  hankering  awe  of  the 
immense  deposits  now  possessed  by  our  banks.  He  was 
miraged  by  the  notion  that  bankers'  deposits  merely 
represent  the  free  resources  of  the  individual  customer, 
whereas  in  reality  only  a  varying  proportion  of  the 
deposits  are  of  such  a  character.  The  other  portion 
is  created  in  a  variety  of  ways,  and  since  the  war 
began,  most  conspicuously  by  bankers'  own  advances 
to  customers.  The  advance  breeds  the  deposit,  and 
the  success  of  the  current  National  War  Bond  cam- 
paign— or  sihould  it  be  "stunt"? — will  no  doubt  in- 
,  volve  a  sensible  further  increase  in  the  obligations  of 
customers  to  their  bankers  which  will  be  expressed  by 
a  still  further  enlarged  total  of  "  deposit  and  current 
account  balances."  Growths  of  this  kind  do  not  always 
or  by  any  means  imply  corresptondingly  augmented 
lendable  resources.  All  this  is  only  another  way  of 
saving  that  the  machinery  has  not  yet  been  devised 
which  will  milch  the  public  continuously  of  its  savings 
over  an  ever-expanding  mob  of  wage-earners.  Never- 
theless, much  has  been,  and  is  being  done,  and  we 
must  persevere  with  the  means  available,  trying  to 
realise  more  and  more  that  upon  self-denial,  now  more 
than  ever,  depends  the  completeness  of  our  victorv. 

Not  a  little  depends  also  upon  how  the  money  is 
spent,  and  the  Chancellor  of  the  Exchequer  had  nothing 
to  say  upon  that  vital  point.  It  is  becoming  more  vital 
tvery  week,  for  extravagance  still  goes  on  in  most  de- 
partments, old  and  new,  without  apparent  check,  a 
perfectly  criminal  extravagance  often.  Many  stories 
similar  to  that  of  the  aerodrome  in  Ayrshire,  which 
was  abandoned  as  useless  after  ;^400,ooo  had  been 
wasted  upon  it,  could  be  cited  as  proof.  The  wild  con- 
fusion with  which  the  money  is  flung  around  has 
already  brought  the  nation  and  the  empire  so  near  to 
financial  inanition  that  but  for  the  help  of  America  we 
should  by  now  have  been  almost  paralysed.  Is  it 
possible  to  check  this  waste?  It  should  be,  but  we  see 
little  trace  of  efforts  that  way,  and  victory  of  the  sort 
w-e  require  may  depend  now  upon  miserliness  in  spend- 
ing. What  measures  are  the  Government  taking  to  put 
on  the  brake?  The  extravagance  of  the  present 
Ministry  has  been  boundless,  greater  even  than  that  of 
its  predecessors,  and  has  grown  to  be  nothing  less  than 
a  public  scandal.  Mobs  surge  in  and  through  its  be- 
wilderingly  multitudinous  "  government  departments," 
and  the  mobs  are  paid  far  more  than  they  need  be,  or 
than  many  among  them  are  worth,  with  not  a  thought 
bestowed  on  the  reckoning  dav.  Does  the  Prime 
Minister,  or  do  any  of  his  colleagues,  ever  give  a 
thought  to  this  indisputable  fact? — If  we  and  our  Allies 
do  not  succeed  in  obliterating  militarism  we  shall  everv 
one  of  us  wind  up  the  war  in  bankruptcy. 


trayal,  and  that  betrayal  has  been  brought  about  not 
by  her  own  people  or  by  her  best  citizens,  but  by 
tiaitors,  either  ex-members  of,  or  closely  linked  with, 
(he  old  secret  police,  that  swarm  of  reptiles  which  so 
long  poisoned  the  social  and  stifled  the  political  life  of 
the  empire.  Another  reflection  which  consoles,  if  it 
does  not  cheer,  is  that,  being  enslaved  by  treachery, 
Russia  is  not  likely  to  submit  tamely  to  the  will  of  the 
nefarious  Power  now  trying  to  put  the  shackles  of 
perpetual  bondage  upon  her.  Have  Prussia  and 
Austria  ever  succeeded  in  assimilating  or  subduing  the 
Slavs  of  Poland?  Nearly  a  hundred  and  fifty  years 
have  elapsed  since  the  first  partition  of  Poland — by 
treachery  also — was  essayed  and  accomplished.  Are 
the  Poles  more  German  or  Austrian  in  sentiment  to-day 
than  they  were  a  hundred  and  fifty  years  ago?  No; 
they  arc  less  so.  They  are  probably  more  ready  to 
be  united  in  a  homogeneous  State  now  than  ever  they 
were.  Are  the  Russian  Slavs  likely  to  be  any  more 
docile  than  the  Poles?  We  do  not  believe  it.  There- 
fore, the  Prussian  triumph  which  is  gloated  over  in 
Junker  circles  in  Berlin,  and  by  the  obscene  German 
Press  controlled  by  the  military  faction  and  its  muni- 
tioners, is  more  likely  to  prove  a  lure  tempting  Germany 
to  destruction  than  a  triumph.  It  surely  is  contemptible 
beyond  description  to  see  these  ruffians  plastered  in 
vvar  accoutrements  bragging  and  strutting  as  if  they 
had  beaten  the  Russian  armies  instead  of  being  again 
and  again  well  thrashed  by  them.  Their  immediate 
object  is  corn — and  thus  far  they  have  only  been  able 
to  brag  over  the  immense  hauls  of  guns,  &c.,  seized. 
But  they  cannot  make  ragouts  of  shells  even  with 
cordite  for  sauce,  and  the  land  they  are  racing  over  is 
still  in  the  grip  of  winter. 

Newspapers  here  have  been  exercising  their  ingenuity 
and  discussing  whether  Lenin  and  Trotsky  have  quar- 
lelled,  or  whether  Lenin  is  still  the  transitory  master  of 
Russia's  fate.  The  question  seems  to  us  to  be  worthy 
to  occupy  the  intellects  only  of  academic  triflers.  Both 
these  men  have  done  their  best  to  ruin  their  country, 
and  .so  far  they  have  succeeded.  Thev  may  cut  each 
other's  throats  now  for  all  that  matters  or  we  care. 
It  seems  true  that  when  the  German  troops  in  their 
eagerness  to  seize  food  in  order  to  lessen  the  starva- 
tion behind  them  began  their  forward  march,  Trotsky 
issued  a  screaming  call  to  arms,  and  that  almost  im- 
mediately after  Lenin  announced,  and  got  his  following 
to  endorse,  surrender,  the  acceptance  of  the  most 
humiliating  terms  the  Prussian  robbers  could  formu- 
late ;  but  such  divergences  mean  nothing,  have  nothing 


The  Warning  in  Russia's  Betrayal. 

Will  any  of  our  pacifists  have  the  manliness  to  look 
the  Russian  situation  squarely  in  the  face,  and,  having 
done  so,  continue  to  advocate  peace  negotiations  with 
the  enemy?  If  such  a  man  exists  we  should  like  to  see . 
film  come  forth  into  the  open  and  tell  us  what  he  aims 
at,  how  he  would  proceed.  The  Russian  situation  is 
from  many  points  of  view  desperate,  and  calculated  to 
generate  despair  in  the  minds  of  all  friends  of  liberty  ; 
but  even  so  there  are  some  consoling  reflections  pos- 
sible in  mitigation  of  our  sorrow.  And  first  among 
these  is  the  fact  that  Russia  has  not  fallen  into  her 
present  disaster-laden  condition  through  defeat.  Russia 
is  in   fetters  to   the   Prussian   marauders   through  be- 


THE 


LONDON  CITY  &  MIDLAND 
BANK  UNITED. 

Head  Office  i  5,  THREADNEEDLE  ST.,  LONDON,  E.C.2. 
Foreign  Branch  Office:  8,  Finch  Lane,  London,  E.C.  3. 


Subscribed  Capital 
Paid-up  Capital 
Reserve  Fund  - 


£24,906,432 
5,188,840 
4,342,826 


Deposits   .        -        .        ■       £220,551,768 
Cash  in  hand  and  at  Banit  of 

England     -        -        ■  44,110,353 

Money  at  Call  and  Short  Notice    31 ,003,560 
Bills  of  Exchange  -    35,052,991 


OVER  1,000  OFFICES  in  the  UNITED  KINGDOM. 


This    Bank    will     collect     for     its 

Customers     free    of    commission, 

cheques   on   the    Belfast    Banking 

Company   Limited. 


220 


XTbe  Jnvestocs'  TRevtew. 


March  2,  1918. 


to  do  with  the  patent  fact  that  these  two  men  have 
laboured  unceasingly,  and  for  long  before  they  were 
tossed  on  top  during  the  ferment  of  revolution,  to  hand 
their  country  over  to  the  enemy.  "  Germany's  knees 
are  on  our  chests,"  now  bawls  Lenin,  he  having  first 
taken  care  to  throw  his  country  down. 

And  look  how  that  enemy's  terms  have  expanded 
now  that  his  tools  have  placed  Germany  on  top.  Ger- 
many's measureless  greed  increa.s€S  the  more  where 
her  masters  think  they  see  the  chance  of  successful  re- 
sistance disappear.  Were  that  "peace"  of  theirs 
latified  indeed,  the  Baltic  would  be  a  German  lake,  and 
Sweden  as  much  at  the  mercy  of  the  Prussian  Junker 
as  Schleswig-Holstein  or  Belgium.  Moreover,  assum- 
ing that  traitor  peace  to  stand,  the  posibility  of  consti- 
tuting a  united  and  free  Poland  would  be  destroyed 
and  Rumania  also  probably  blotted  out.  It  would,  in 
short,  be  the  triumph  of  that  "  pressure  towards  the 
East  "  which  has  long  been  one  of  the  foul  dreams 
of  pan-Germanism. 

And  behold  what  phrases  were  used  by  Kiihlmann  at 
the  Bre't-Litovsk  parleys,  what  professions  of  humani- 
tarian aims  and  sentiments,  what  assurances  that  the 
right  of  separate  nationalities  to  determine  their  own 
fate  and  fortunes  would  be  respected.  The  whole 
palaver  was  a  significant  object-lesson  to  the  Allies, 
and  should  steel  our  hearts  to  have  nothing  whatever 
to  do  with  these  abandoned  scoundrels  who,  themselves 
having  pawned  their  souls  to  the  beast  in  mankind, 
now  labour  unceasingly  to  enslave  every  country  whose 
well-being  excites  their  envy,  whose  wealth  thev  long 
to  steal. 

We  from  the  beginning  of  this  war  and  months  . 
before  we  began  to  realise  that  it  was  to  be  a  long  war 
to  the  death,  insisted  that  when  the  time  did  come  to 
talk  of  peace,  there  should  be  no  thought  of  negotiat- 
ing with  the  Hohen2011erns  and  their  robber  hosts. 
We  go  further  to-day,  and,  in  repetition  of  what  was 
said  last  week,  insist  that  the  Allies  must  have  done 
with  talk  of  negotiations  of  any  kind  with  the  two 
derelict  empires  of  Central  and  Southern  Europe, 
either  now  or  later.  The  policy  we  must  follow,  which 
Russia's  fate  warns  us  to  follow,  let  it  be  repeated  and 
insisted  upon,  is  that  of  Abraham  Lincoln  and  the 
statesmen  of  Washington  at  the  close  of  the  American 
Civil  War.  "  The  Confederates  are  rebels,"  was  their 
contention,  and  with  rebels  no  treaty  of  any  kind  is 
possible  until  they  first  surrender  unconditionally.  Are 
not  these  empires  who  have  schemed  and  prepared  for 
this  diabolical  war  "rebels"  against  every  principle 
sacred  to  mankind?  And  shall  we  dare,  after  the  ex- 
perience we  have  had,  to  put  reliance  upon  any  Avords 
of  theirs,  any  promise  they  make?  No.  The  fight 
must  be  a  fight  to  the  finish  in  the  sense  that  we  must 
so  exhaust  the  enemy  as  to  force  him  to  lay  down  his 
arms  in  exchange  for  bread.  Because  this  is  the  goal 
vve  must  aim  at,  if  we  are  to  end  militarism  and  sur- 
vive, we  should  more  and  more  lament  were  our  mili- 
tary leaders  to  embark  on  large  offensives  in  the 
coming  campaign.  Let  offensives  come  from  the  other 
side,  the  side  now  besieged.  Let  the  enemy  dash  his 
remaining  forces  against  our  lines  until  he  has  ex- 
pended the  last  of  his  strength.  His  position  is  such 
now  that  he  is  compelled  to  run  every  risk  in  order  if 
possible  to  avert  his  doom. 

Hertling  has  been  gabbling  again  in  his  thin  peda- 
goguish  way,  and  spitting  out  spites,  lies,  tu-quoques, 
insinuations,  hints  that  the  mighty  German  Empire 
might  concede  this  and  be  willing  to  modify  that,  &c., 
&c.  Our  newspapers,  as  usual,  have  fallen  into  the 
snare  set  before  their  eyes,  and  are  playing  the  Prus- 
sian game  by  treating  as  serious  and  discussable  these  * 
essays  in  the  art  of  beguiling.  It  is  surely  time  to 
stop  that.  Again  and  again  Prussia  has  had  her 
answer— and  Austria  too.  There  is  no  more  to  be 
said  on  the  .Allied  side — except  the  message,  "  When 
you  lay  down  your  arms  and  relinquish  vour  prey  we 
may  talk,  and  not  till  then."  These  empires  and  their 
rulers  are  outlaws  from  civilisation ;  their  manifold 
crimes  and  brutal  ambitions  arc  the  last  expression  of 
the  savage  in  mankind  ;  and  Austria  is  fully  as  deep- 


dyed  a  criminal  as  Germany.  Cease  parleying  with 
such  men,  therefore,  and  go  on  in  grim  silence  with 
the  work  we  have  to  do.  That  is  the  message  of 
Russia  betrayed — betrayed  but  not  forsaken — to  each 
one  of  the  Allies,  and  we  may  be  sure  that  the  United 
Slates  at  least  will  not  neglect  the  warning. 


Home    Railway    Results. 

We  have  dealt  fully  with  the  principal  railway  re- 
ports as  they  mack  their  appearance,  but  as  a  matter 
of  record  it  is  interesting  to  group  the  results  of  the 
leading  companies  for  the  purpose  of  contrasting  their 
progress.  Complete  accounts  and  the  usual  abstracts 
are  still  withheld,  and  no  close  analysis  of  the  position 
is  therefore  possible,  but  such  iigures  as  are  available 
may  be  useful  for  future  reference.  It  will  be  seen 
from  the  accompanying  tables  that  in  every  case  there 
has  been  a  very  substantial  increase  in  gross  receipts, 
but  we  are  not  allowed  to  know  to  what  extent  this  is 
due  to  the  larger  volume  of  business  handled,  or 
whether  it  is  mainly  the  result  of  the  arrangements 
entered  into  with  the  Government  since  the  outbreak  of 
the  war.  We  cannot  see  that  there  would  be  any  parti- 
cular harm  in  supplying  this  information,  as  it  will 
have  to  be  disclosed  one  of  these  days  when  the  future 
of  the  railways  comes  up  for  final  settlement  or  adjust- 
ment, and  it  might  be  better  from  several  points  of 
\iew  if  the  materials  were  furnished  for  a  frank  and 
reasoned  discussion  of  the  jwsition. 


North-Western    . . , . 
Great  Western    . . . . 

Midland     

North-Eastern 

Lanes  and  Yorks    .. 
Great  Northern   . . . . 

Great  Eastern 

Great  Central 

South-Western    . . . . 
S.-E.  and  Chatham.. 

Brighton    

North  British   

Caledonian   

Glasgow  and  S.-W.. 


Gross 
Receipts. 


Increa-e. 


£ 
21,484.000 
18,810,000 
18,167,000 
14,034,000  i 
9.053,000 
8,269.000 
7,842,000 
7,832,000 

7,65'5,ooo 
6,060,000 
4,592,000 
7,211,000 
6,883,000 
2,738,000 


£ 

2,050,000 

1,442.000 

1,307,000 

1,030,000 

713,000 

470,000 

686,000 

765,000 

675.000 

330,000 

298,000 

740,000 

670,000 

2?3  000 


Miscel- 
laneous 
Revenue. 


£ 
543.000 
448,000 
627.000 
223,000 
198.000 
226,000 
123,000 
135,000 
173,000 
427,000 
126,000 

71,000 
174,000 

42.000 


Increase 

or 
Decrease. 


£ 

43.000 

120,000 

16,000 

60,000 

12, ceo 
11,000 
3,000 
5,000 
3,oco 
5.000 
7,000 
5.000 
9,000 
1,000 


Reserve  & 

Expenses 

Increase. 

Deprectn. 
Funds. 

Increase. 

£ 

£ 

£ 

£ 

North- Western    .... 

15.587.000 

1,930,000 

5,670,000 

1,120,000 

Great  Western    .... 

13,210,000 

1,387,000 

7.405,000 

1,932,000 

Midland    

12,515.000 

1,320,000 

8,415,000 

1,690,000 

North-Eastern 

10,000,000 

1,084,000 

5,413.000 

1,310,000 

Lanes,  and  Yorks   . . 

6,627,000 

720,000 

1,484,000 

340,000 

Great  Northern  ,. .. 

6,048,000 

451,000 

1,614,000 

420,000 

Great  Eastern 

5,808.000 

687,000 

2,220.000 

527,000 

Great  Central 

5,728,000 

748,000 

1,763,000 

270,000 

South- Western    

5,620,000 

679,000 

1,656,000 

418,000 

S.-E.   and   Chatham 

4,047,000 

334.000 

1,435,000 

462,000 

3,207,000 
4,914,000 

293,000 
683,000 

230,000 
277,000 

North  British 

1,072,000 

Caledonian  

4,721,000 

662.000 

1,183,000 

623,000 

Glasgow  and  S.-W.. 

1,953.000 

220,000 

783.000 

102,000 

I 


It  is  at  any  rate  evident  that  if  the  increase  in  re- 
ceipts represents  a  larger  volume  of  traffic,  railway 
stockholders  are  nc-t  getting  the  benefit  of  it,  as  ex- 
penses are  adjusted  to  swallow  up  practically  the  whole 
of  the  gain — in  some  instances  a  bit  more — and 
although  the  Scotch  lines  have  squeezed  out  a  trifle 
extra  in  the  way  of  dividend,  the  English  companies 
as  a  rule  have  been  content  to  leave  their  distributions 
at  last  year's  level.  Possibly  the  proprietors  ought  to 
be  well  satisfied  with  that  position,  for  between  the  in- 
creased wages  bills  and  the  higher  cost  of  fuel  and 
other  materials,  it  is  very  doubtful  whether  they  would 
be  better  off  without  Government  control.  At  the 
meeting  of  the  Caledonian  Co.  it  was  mentioned  that 
the  rise  in  wages  on  the  railw'ays  of  the  United  King- 
dom since  1914  amounted  to  ;^;^5,ooo,ooo,  and  it  was 
also  stated  that  the  cost  of  carrying  traffic  had  In- 
croased  by  52  per  cent,  since  19 13.  On  the  whole, 
therefore,   the  shareholders  are  perhaps  not  so  badly 


March  2,  1918. 


Zbc  Jnvestors'  IRevlew, 


221 


treated  as  some  of  them  would  like  to  make  out.  The 
most  serious  question,  however,  with  which  they  will 
be  faced  in  the  future  is  that  of  depreciation.  It  has 
been  impossible  to  provide  adequately  for  the  mainten- 
ance of  permanent  way  and  rolling-stock  owing  to 
sliortage  of  labour  and  the  difliculty  of  obtaining  the 
necessary  materials.  It  will  be  seen  that  in  most  cases 
very  considerable  sums  have  been  set  aside  for  depre- 
ciation and  reserve  funds  on  account  of  deferred  repairs 
and  renewals,  but  we  are  far  from  confident  that  they 
are  sufficient,  having  regard  to  ihe  increased  wear  and 
tear  to  which  the  lines  and  plant  have  been  subjected, 
but  we  have  no  means  of  forming  an  accurate  opinion 
on  the  subject,  and  can  only  hope  that  the  various 
boards  have  given  the  matter  their  most  earnest  con- 
sideration. 

Before  the  dividend  announcements  and  reports  were 
issued  it  was  rather  generally  expected  that  interest  on 
accumulated  reserve,  &c. ,  funds  would  help  to  provide 
latger  distributions,  but  it  will  be  seen  that  miscel- 
laneous nett  revenue  has  not  increased  to  any  appreci- 
able extent.  The  Great  Western  has  been  exception- 
ally fortunate  in  this  respect,  while  few  of  the  others 
show  up  to  much  advantage,  and  In  several  cases  there 
are  actual  declines.  At  the  meeting  of  the  Great 
Western  an  effort  v/as  made  to  get  the  dividend  raised 
to  the  1913  level,  and  the  feeling  of  the  shareholders 
ma}  be  gathered  from  the  fact  that  ^2  voted  against 
the  adoption  of  the  report  as  compared  with  62  in  its 
favour.  As  we  said  previously,  we  have  little  sym- 
pathy with  the  agitation,  and  think  the  directors  are  to 
he  commended  for  their  prudence  in  strengthening  the 
reserves,  but  the  incident  is  significant.  Perhaps  the 
malcontents  were  thinking  more  of  what  the  future 
may  have  in  store  f'^vr  them  than  the  immediate  advan- 
tage of  a  slightly  higher  return  on  their  investment. 
At  several  of  the  annual  meetings  reference  was  made 
to  what  is  likely  to  happen  to  the  railways  after  the 
war,  but  if  the  directors  have  any  clear  ideas  on  the 
subject  they  prefer  to  keep  their  own  counsel.  It 
IS  widely  recognised  that  the  status  quo  ante  cannot  be 
resumed  even  after  a  longer  or  shorter  interval  as  some 
people  expect,  and  our  own  opinion  is  that  nationalisa- 
tion is  unavoidable,  but  there  may  be  several  inter- 
mediary steps,  and  the  queS'tion  need  not  be  discussed 
at  present.  There  will  be  a  great  many  other  urgent 
problems  to  settle  when  the  bestial  Hun  is  beaten  to 
bis  knees,  and  the  railway  position  can  wait  its  turn  as 
well  as  most. 


Phosphate  "  Find  "  in  South  Africa. — A  good  deal  of  interest 
attaches  to  the  discovery  in  the  vicinity  of  Grahamstown  of  a 
large  deposit  of  phosphatic  rock.  At  present  the  information 
is  too  meagre  to  arrive  at  any  definite  conclusion  upon  the 
value  of  the  discovery,  but  the  event  warrants  considerable 
attention,  and  developments  will  be  eagerly  awaited  in  view 
of  the  shortage  of  fertilisers  in  South  Africa  and  the  insuffici- 
ency of  phosphates  in  the  soil  of  many  districts. 

The  Association  of  British  Advertising  Agents  (Incorporated) 
has  issued  an  interesting  pamphlet  entitled  "  The  Function  and 
Place  of  Advertising  in  Modern  Business  Economics."  This  is 
well  worth  the  study  of  business  men  generally,  and  the  little 
treatise  piesents  its  case  in  an  admirably  lucid  manner. 


By-the-Way  War  Notes. 

As  we  look  forth  at  the  warring  world  on  this  last  day 
of  February  the  superficial  prospect  does  not  seem  any 
too  cheerful.  Germdn  aggression  and  insolence  con- 
front us  everywhere,  German  troops  are  hurrying  on 
towards  Petrograd  and  Kieft,  trying  to  isolate  Moscow 
from  the  capital  of  the  Tsars,  and  seizing  the  coast  of 
the  Baltic  as  they  push  forward.  In  Asia  Minor  the 
Turks  have  reoccupied  Trebizond,  and  it  is  to  be 
feared  that  once  more  the  unfortunate  Armenian  people 
are  being  left  without  protection  from  the  Ottoman 
assassins.  The  Austrian  half  of  the  coalition  of  op- 
pressors is  showing  its  homogeneity  of  sentiment  with 
the  German  half  by  the  behaviour  of  Count  Czernin  at 
Bukarest  in  the  negotiations  forced  upon  Rumania. 
.\long  the  Western  front,  too,  continual  threats  of 
assaults  keep  the  Allies  on  the  qui  vive  without  appar- 
ently leading  to  an  early  fulfilment  of  the  eneiny's 
boasts.  Everywhere  except  in  Asia  there  is  strain,  an 
apparent  deadlock. 

And  the  political  spokesmen  of  the  Prussian  mili- 
tarists in  Berlin  increase  the  insolent  duplicity  of  their 
attitude  with  each  additional  apparent  triumph  in  the 
field.  They  show  themselves  to-day  as  at  the  first, 
careless  of  every  principle  of  humanity  which  man- 
kind had  adopted  in  the  belief  that  thus  could  we  make 
sure  that  civilisation  had  at  last  come  to  stay.  The 
promise  of  les  Bodies  was  given  that  no  more  hospital 
ships  should  be  torpedoed,  and  one,  the  Glenart  Castle, 
has  been  sunk  this  week  in  the  Bristol  Channel  in  cir- 
cumstances of  the  usual  heartless  brutality.  Happily 
there  were  no  wouf.ded  on  board,  but  eight  nurses 
were  on  board,  and  arc  among  the  151  reported 
missing.  The  ship  sank  in  seven  minutes.  It  is 
nevertheless  reported  that,  through  a  neutral,  or  Red 
Cross,  agency  the  Germans  are  endeavouring  to 
negotiate  an  agreement  with  the  Allies  to  stop  the  use 
of  poisoned  gas  in  war — but  they  tried  their  gas  on  the 
Americans  the  other  day,  and  we  may  be  sure  from 
bitter  experience  that  were  such  a  promise  to  be  given 
the  tx)mpact  would  be  violated  by  the  enemy  without 
a  moment's  hesitation,  when  he  thought  he  might  gain 
by  its  use.  What  can  be  done  with  a  people  so  aban- 
doned? They  must  be  destroyed  lest  we  perish,  and 
happily  all  their  seeming  victories  are  tending  to  facili- 
tate their  destruction. 

Are  things  really  so  black  as  they  seem?  We  think 
not,  not  even  in  Russia.  To  be  reassured  one  has  but 
to  remember  what  would  have  been  likely  to  happen 
had  the  Germans  penetrated  Russia  in  191 5  instead  of 
nearly  three  years  later.  Then  the  Hohenzollern  Em- 
pire was  in  the  full  vigour  of  its  military  strength,  and 
its  armies,  if  victorious,  might  have  held  large  portions 
of  Russia,  seized  the  northern  shores  of  the  Black  Sea, 
dominated  .Asia  Minor,  and  intervened  in  the  Balkan 
dispute  lar  more  effectually  than  they  have  done, 
whereas  now  the  sr.ccess,  product  of  chicane  and 
treachery,  comes  too  late,  is  but  a  snare  to  lure  the 
abandoned  foe  on.     Germany  has  not  new  the  strength 


TD. 


STANDARD  BANK  DF  SOUTH  AFRICA,  L 

Bankers  to  the  Govemnient  of  the  Union  of  South  Africa  in  Cape  Province ;    to  the  Imperial  Government  in  South  Africa  and  to  the  Administration 

of  Rhodesii. 

Subscribed  Capital    ...   £6,194,100     |     Reserve  Fund     £2,000,000 

Paid-up  Capital £1,548,525     |     Uncalled  Capital         ...    £4,645,575 


WM.   KEIKRSON  ARBliTHNOT,  Psq. 

SI  R  DAVID  M.  BARBOUR,  K.C.S.I.,  K  C.M.G. 

ROBERT  K.  DICKINSON,  Esq. 


Board     of      Directors. 

JAMES  FAIRBAIRN  FINLAY,  Esq.,  C.S.I. 
HORACE  PEEL.  Esq. 
WILLIAM  SMART,  Esq. 


Rt.  Hon.  LORD  SYDENHAM,  G. C.S.I  , 

G. C.M.G. ,  G.C.I. E.,  G.B.E. 
H.  L.  M.  TRITTON.Esq. 


Head  Office:   lO  CLEMENTS  LAME,  LOMBAftO  STREET,  LONDON,  E.C.  4. 

New  York  Agency:— 68,  WAUL  STREET,    Over  2SO  Branches  and  Agencies  in  South  and  East  Africa' 

EVERY  DESCRIPTION  OF  BANKING  BUSINESS  transacted  with 

the  Cape  Province,  Natal,  Orang.:  Free  State,  Transvaal,  Rhodesia, 
Nyasaland,  East  Africa  Protectorate,  Uganda,  Zanzibar,  Portuguese 
East  Afric  1,  South- West  A'rica  Protectorate,  and  the  Belgian  Congo, 
and  with  the  Bank's  Agencies  in  New  York  and  elsewhere. 
CURRENT  ACCOUNTS  are  opened  on  the  usual  terras 


DEPOSITS  RECEIVED  for  fixed  periods  at  rates  which  may  be  ascer 

tamed  on  rtppljrntion. 
BILLS  NEGOTIATED  AND  COLLECTED 


The  officers  ol  llts  Hank  aye  bound  not  lo  disclose  the  transactions  oj  any  of  its  customers 


MAIL  AND  TELEGRAPHIC  REMITTANCES  ma.  e. 

LETTERS  OF  CREDIT  AND  DRAFTS  granted  on  the  branchts  and 

Agencies  of  the  Bank. 
THE  BANK  ISSUES  C  RCuLAR  LETTERS  OF  CREDIT  available 

in  all  parts  of  the  wot  Id. 
COMMERCIAL  LETTERS  OF  CREDIT  ISSUED. 
PURCHASE  AND  SALE  OF  STOCKS  AND  SHARES  effected. 
DIVIDENDS,  ANNUITIES.  &c.  received. 
EXECUTOR  AND  TRUSTEE  Business  undertaken. 


FRANCIS  SniPTON,  Lomlon  Manager. 


222 


^be  Jnveetor^'  TRevlew, 


March  2,  1918. 


to  hold  what  slje  is  so  feverishly  stretching  forth  her 
hands  to  grasp.  The  German  plunge  into  Russia  in  a 
style  imitative  of  Napoleon's  is  nothing  more  than  a 
foraging  expedition  carried  out  in  desperation  by  the 
troops  of  a  nation  now  near  tlie  extremity  of  hunger. 
Let  us  not  be  deluded  then  by  the  vapouring  talk  of 
the  puppets  of  Junkers  in  Berlin  or  elsewhere,  nor  give 
up  our  faith  in  Russia,  for  even  now  the  Bolsheviks 
and  their  corrupt  leaders  cannot  prevent  the  jjeople 
they  have  sold  to  the  enemy  from  rushing  to  arms  to 
repel  the  aggressor.  The  Germans  are  successful  only 
in  inciting  the  Russians  against  them  and  in  bringing 
other  ffjcs  down  upon  them.  In  all  probability, 
should  the  invasion  proceed,  part  of  the  United  States 
forces  will  be  diverted  to  Vladivostok,  and,  in  con- 
junction with  Japanese  troops,  advance  through  Siberia 
to  put  an  end  to  the  Hohenzollern  foray  in  a  way 
Russia  alone  is  not  at  present  able  to  do. 

The  whole  world  will  now  be  against  the  Teuton 
brute — ay,  even  China — and  at  no  vital  point  where 
mere  fighting  is  going  on  or  in  question  can  we  now 
fear  the  result.  Our  own  armies  in  Palestine  and 
Mesopotamia  are  driving  the  enemy  before  them,  and 
although  mountains  and  much  forbidding  country  lie  be- 
tween them  and  their  goals,  their  presence  already  does 
probably  more  than  we  realise  to  paraly.se  the  aggres- 
sive activity  of  the  enemy.  In  the  Balkans  the  presence 
of  the  Allies  and  of  the  reorganised  Greek  army  helps 
to  contain  the  action  of  Austrian,  Hungarian,  and  Bul- 
garian land  thieves,  whom  we  are  bleeding  and  starv- 
ing. AH  of  them  are  exhausted  ;  we  have  but  to  sit 
still  to  make  the  remnants  of  their  populations  ere  long 
glad  enough  to  lay  down  their  arms  and  be  allowed 
to  live. 

So  is  it,  too,  on  the  Italian  front ;  and  proof  that 
Austria  is  approaching  a  state  of  impotence  even  there, 
near  her  heart,  is  afforded  by  the  savagery  of  her 
assaults  upon  the  civil  population  and  ancient  art- 
adorned  cities  within  reach  of  her  aircraft.  Austrians 
better  than  Prussians?  Nay,  they  were  oppressors  and 
cruel  as  the  grave  before  ever  Prussia  was  heard  of. 

We  in  the  West  still  await  the  much-advertised  Ger- 
man assault  in  France  and  Belgium,  and  await  with 
serenity,  for  whatever  she  may  have  in  numbers — and 
they  cannot  exceed  ours — Germany  does  not  now  pos- 
sess the  quality  of  men  capable  of  giving  her  success 
in  any  sustained  onslaught  upon  the  Allied  lines.  But 
two  motives  probably  egg  her  on  to  rush  on  her  fate, 
one,  and  the  most  powerful,  is  increasing  hunger  inside 
Germany,  with  its  accompanying  political  unrest ;  the 
other  is  the  imminence  of  American  active  participation 
on  a  large  scale  in  the  fighting  this  spring  and  summer. 
Even  the  most  pride-bloated  German  Junker  cannot 
disguise  from  himself  the  fact  that  if  his  war  leaders 
wait  until  the  United  States  has  mustered  its  full  com- 
plement of  warriors  alongside  the  French  and  British, 
the  day  of  the  German  Empire  is  over. 

A  statement  was  made  by  Mr.  War  Cabinet  Barnes 
on  Tuesday  which  is  anything  but  pleasant  reading, 
especially  in  view  of  the  fact  that  during  this  month 
no  progress  seems  to  have  been  made  towards  our 
mastery  over  the  submarine  plague.  He — speaking  with 
reference  to  the  effect  of  the  12J  per  cent,  bonus — flung 
at  the  head  of  the  wage-earners  by,  as  he  told  a  Glas- 
gow audience,  the  new  Minister  of  Munitions,  Mr.  Win- 
ston Churchill — declared  that  last  month,  "  instead  of 
a  certain  number  of  ships  being  turned  out  from  the 
shipyards  in  this  country,  we  had  less  than  half  the 
estimate  actually  turned  out."  That  is  vague,  but  the 
essential  meaning  can  be  gathered,  and  it  is  disagree- 
able enough.  He  clinched  the  matter  by  adding  that 
America  "  was  also  failing  us  so  far  as  ships  were  con- 
cerned," and  admitted  that  it  was  a  serious  matter, 
"  for  shipyards  are  even  of  more  importance  than 
munition  shops."  That  is  true  enough;  and  so  the 
indiscriminate  bonusing  has  been  a  failure,  and  abetter 
method  will  have  to  be  found  to  stimulate  work  in  our 
shipyards,  a  rnethod  that  will  make  earnings  depend, 
say,  on  the  amount  and  the  quality  of  the  work  done — 
an  honest  method,  in  short.  Earnings  to  be  fair  ought 
to  depend  upon  and  be  the  product  of  the  actual  labour 


performed,  not  the  product  of  dodging  and  cheating,  a 
burden  imposed  on  our  children's  children  in  order  that 
the  men  of  the  passing  day  might  have  a  good  time  at 
the  cost  of  shirking  their  duty. 

Mr.  Barnes's'  statement  is  all  the  more  serious  be- 
cause of  our  failure  to  overcome  the  enemy's  U-boat 
piracy.  Last  week's  sinkings  of  British  ships  of  1,600 
tons  and  upwards  numbered  14,  which  was  one  more 
than  the  sinkings  of  the  week  ended  February  9,  and 
four  more  than  last  week's.  Three  smaller  vessels 
were  also  sunk,  together  with  7  fishing  vessels,  so  that 
the  total  number  of  our  ships  of  all  sizes  .sunk  last 
week  was  24,  as  against  23  in  the  week  ended  February 
9,  and  14  in  the  succeeding  week.  The  rise  may  be 
accidental,  but  the  fact  that  more  attention  seems  to  be 
paid  by  the  pirates  to  our  shipping  craft  would  seem  to 
point  to  increased  activity  in  German  naval  yards,  and 
a  definite  purpose  to  strive  after  depriving  us  of  fish 
as  well  as  of  flesh  and  cereals.  Who  supplies  the  Ger- 
man navy  with  the  information?  One  French  ship  only, 
of  less  than  1,600  tons  burden,  was  sunk,  but  no  Italian 
vessel  last  week,  so  that  the  enemy  seems  to  be  concen- 
trating against  the  United  Kingdom.  That  should 
surely  stimulate  our  workmen  to  take  a  higher  view  of 
their  responsibilities  than  that  governed  by  the  mere 
earnings  per  hour  passed  within  the  workshop,  even 
when  .swollen  with  bonuses  indiscriminately  distributed. 
If  they  do  not  provide  the  shipping,  their  wage-wealth 
may  presently  be  insufficient  to  provide  the  needed  food, 
because  there  will  be  no  food  available. 


Income-Tax  Guides  and  Lessons. 

I. — (continued). 
Incomes  Earned  and  Unearned. 
Unless  the  total  income  soars  to  a  figure  over  ;^2, 500,  every- 
one is  interested  to  secure  that  such  pait,  if  any,  of  his  income 
as  is  entitled  to  be  reckoned  as  earned  shall  obtain  that  benefit. 
In  a  sense,  every  investment  "  earns  "  interest  or  dividend,  but 
that  is  not  the  meaning  of  the  word  tor  incon'e-tax  purposes. 
The  idea  is  income  earned  by  personal  exertions,  not  by  capital, 
but  yet  it  is  extended  to  cover  pensions  given  in  respect  of  past 
services,  whether  the  pension  be  paid  to  the  worker  or  to  his 
widow  or  children.  Here  we  have  a  good  illustration  of  the 
fact  that  income-tax  law  is  often  very  illegitimate  and  unjust. 
If  A  is  employed  by  a  company  which  makes  deductions  from 
wages  and  pays  retiring  pensions,  the  pension,  when  received,  is 
taxed  at  the  lower  "  earned  "  rate.  If  B  is  employed  by  a  com- 
pany which  has  no  such  scheme,  but  pays  wage.s  higher  than 
the  other  company's  by  an  amount  which  enables  3  to  pro- 
vide a  similar  deferred  annuity  for  himself  through  an  insurance 
company,  the  annuity,  when  received,  is  taxed  at  the  higher 
"  unearned  "  rate. 

Exemption  Claims. 

Ifl  the  year  1914-15  anyone  whose  income  did  not  exceed 
/160  was  entitled  to  repayment  of  all  income-tax  which  had 
been  charged  against  him  in  any  form.  For  the  later  years 
the  free  limit  is  reduced  to  ;^i3o.  The  ;£i6o  limit  still  holds 
for  1914-15,  so  that  a  person  whose  income  has  been  steady 
at  Z160  is  still  entitled  to  total  exemption  for  that  vear,  if  not 
already  obtained,  but  the  claim  must  be  sent  in  befoie  April  <; 
of  this  year. 

Scale  .\b.\tements. 

This  is  the  oldest  form  of  the   principle  of  graduation.     In 

the  four  years  which  may  have  to  be  dealt  with  in  a  cUim  lor 

repayment  the  scales  are  :  —  _,     „ 

*^  •'  The  Concession  is  an 

Amount  Equ»l  to  «  Tax  on 
Income.  I9U-I5-  JQ'S-iS. 

^  i  L 

161  10400  '*>°   •••• 

13110400  —   ••••   "° 

401  to  500    150         ••••         «°° 

501  to  600   "o        ••■•         '«^ 

60110700   70        ••••  7° 

It  will  be  observed  what  exactly  the  abatement  is.  It  is  a 
certain  degree  of  tax  remission  ;  you  pay  no  tax  on  a  part  of 
your  income  equal  in  amount  to  the  abatement.  But  your  in- 
come is  not  deemed  to  be  less  than  it  actually  is.  On  the  con- 
tiary,  it  is  taken  at  its  actual  amount— that  gross  amount  fixes 
the  rate  or  rates  of  tax.  The  abatement  is  deducted  from  the 
income,  but  only  a/ter  the  rate  or  rates  of  tax  have  been  fixed 
according  to  the  gross  unabated  income.  The  concessions  are 
abatements  of  tax  only,  not  deductions  from  income.  If  your 
business  yields  /loo  less  than  last  year,  that  is  one  thing,  but 
it  is  a  totally  different  thing  to  have  an  abatement  of  that 
amount  because  your  income  is  Z550.  You  pay  tax  on  only 
/450,  but  the  earned  rate  is  as.  6d.  applicable  to  incomes  ex- 
ceeding j^soo  (which  your  income  does),  and  not  as.  jd.,  which 
is  the  earned  rate  on  incomes  not  exceeding  that  limit. 


March  2,  1918. 


Uhc  Jnvestors'  TRevtew. 


223 


The  other  abatements  for  children  and  life  insurance  operate 
in  the  same  way  ;  so  will  the  promised  wife  abatement.  With 
this  contrasts  allowances  for  wear  and  tear,  obsolvesoence,  unlet 
property,  lost  rents,  rent  abatements,  and  extra  cost  of  main- 
tenance of  property,  all  of  which  are  actual  deductions  from 
income. 

No  Profit  From  Income-Tax. 

The  rule  is  absolute  that  no  one  shall  ever  be  in  a  better 
position  by  reason  of  there  being  an  income-tax  in  existence. 
Thud  it  is  true  that  anyone  whose  income  docs  not  exceed  £,^y> 
is  totally  exempt.  But  that  only  means  that  he  shall  not  b« 
out  of  pocket  owing  to  the  tax,  no!  that  he  may  even  be  better 
in  his  pocket  on  account  of  the  tax.  Thus,  suppose  he  owns 
buildings  and  pays  ground  burdens  amounting  to  £i(>,  and 
mortgage  interest  amounting  to  £a°'  When  he  pays  these,  he 
deducts  5s.  per  £  for  tax,  and  so  in  the  cxne  case  he  really  pays 
only  £12,  and  in  the  other  ^^30.  If  there  were  no  tax  he  would 
have  to  pay  £^(>  gross,  whereas  he  is  now  paying  only  £^2 
nett.  The  difference  of  £1^  is  in  his  pocket  on  account  of  the 
Chancellor  of  the  Exchequer,  and,  notwithstanding  his  ex- 
emption, he  will  be  assessed  on  the  £^(>,  so  as  to  make  him 
hand  over  to  the  Exchequer  the  £n  which  he  has  so  collected 
as  the  Chancellor's  agent.  He  is  thus  neither  better  nor  worse 
than  if  there  had  been  no  income-tax  at  all.  But  note  that  in 
stating  his  income  the  whole  £$(>  will  be  taken  off  as  a 
"burden."  Thus,  if  the  nett  assessments  of  his  properties  (his 
only  income)  are  ;Ji86,  the  ^56  brings  his  true  income  down 
to  ^130,  and  he  pays  no  tax  for  himself,  but  still  he  must  dis- 
gorge tihe  £n. 

The  Graduation  Principle. 

The  idea  is  to  vary  the  rate  of  tax  according  to  the  ability  of 
the  tax,payer  to  bear  it.  Starting  with  a  standard  or  normal 
rate — at  present  5s. — the  principle  is  applied  by  giving  what 
is  known  as  "  rate-relief  "  to  all  incomes  exceeding  ;^i3o  and 
not  exceeding  ;^2,ooo,  so  far  as  unearned,  or  ;^2,5oo  so  far  as 
earned.  Tliis  is  indepcmdent  lof  the  scale  abatements  already 
deait  with.  These  latter  exempt  part  of  the  income  altogether, 
then  the  graduation  reduces  the  rate  on  the  balance.  Thus  a 
man  with  an  earned  income  of  ;^s°<'  (no  children  and  no  life 
insurance)  has  a  scale  abatement  of  ;^ioo  totally  free,  and 
"  rate-relief  "  on  the  balance  of  ;^4oo,  bringing  down  the  rate 
from  5s.  to  2s.  3d.  So  a  lady  with  an  income  of  ;f30o  from 
inves.tments  has  ;^i2o  totally  free,  and  reduction  of  tax  from 
5s.  to  3s.  on  the  balance  of  ;£i8o.  The  following  table  shows 
the  position  for  this  year  and  the  three  preceding  yeais  : — 


Total  Income. 


Not  exceeding 
/'30    

;fi6o    

£i°°  

£y  

;fl.0O0        ... 

;fl,50O       ... 

/2,000     ',., 
£^.500      ... 


So  far  as  tbt 
income  is— 
(Earned     \ 
(unearned) 


(Earned     ) 
1  Unearned/ 


Nature. 


(Earned 


I  Unearned 


(Earned 
(Unearned 


(Earned 
1  Unearned 


r  Earned 
\Unearned 


(Earned 
\Uncarned 

'Earned 
jUneamed 


Rate  of  Tax. 


1914-15. 


s.  d. 
Free 


Free 


I     o 
»     4 


I     o 
I     6| 


t     0 
I     8 


1915-16. 


n„,r  /•.>  . Earned 

Over  ^.,500..     ^Unearned 


I     4 
I     8 


s.  d. 
Free 


1916-17. 
1917-18. 


6§ 
8 


I     8 
I     8 


I     9l 
?     4* 


9! 
9: 


-     9! 
3    • 


«     41 

3     o 


9i 
o 


s.  d. 
Free 


2  3 

3  o 

2  3 

3  • 

2  3 

3  • 

2  6 

3  6 


3  ° 

4  ° 


3     o 
3     o 


5    o 
5     o 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 
Period. 


Annandale  and  Son.  (Dec.) 

Do Prev 

Barnet  Gas  and  Water 

(J-Dec.) 

Do Prev, 

British  L.  M.  Ericsson 

(Dec 

Do Prev 

Buttons    (Dec 

Do Prev 

Caledonian  Trust    ..(Jan. 

Do Prev 

Cannock  and  Co.. ..(Jan. 

Do Prev 

Day  and  Martin..  ..(Dec. 

Do Prev 

Horace  Cory (Dec. 

Do Prev 

Hy.  Boston  &  Sons  (Dec. 

Do Prev 

John  Crossley  &  Sons(Nov 

Do Prev 

Lloyd  and  Yorath  . .  (Nov 

Do Prev 

North  Ireland  Paper  (Dec 

Do Prev 

Pina  Bros (Jan- 
Do Prev 

Stead  and  Simpson. ..(Dec 

Do Prev 

Thos.  Brooks  &  Co.  (Jan 

Do Prev 

Ulster  Steamship    .,  (Jan. 
Union  Commercial  Invest 
ment (Jan 

Do Prev 

Waterlow  Bros,  and  Lay 
ton    (Sept. 

Do Prev 

Wilkinson  &  Riddell  (Dec. 

Do Prev 

Wolverhampton  Gas 

(i-Dec. 

Do Prev 


Gross 
Pro6t. 


16.350 
18,620 

95.850 
70,660 


62,300 
54.960 


13,010 
9.380 

10,540 
13.250 


Nett 
Profit . 


16,070 
16,440 

35,260 
29,470 

50,410 
48.340 

88,650 
75.170 


£ 

9.730 
9,170 

11,000 
10,300 

72.510 
47.150 
64,990 

73.560 
23,060 
24,890 
12,290 
10,790 
13,120 
8,140 
8,430 
10,950 
80,300 
71.380 
47,820 
51.990 
33.260 
23,110 
14,500 

29.470 
40,280 

33.480 
83,040 
76,650 
10,280 
11,840 
55.370 

12,540 
12,400 

22,150 
21,410 
48,610 
45,630 

6,800 
7,810 


Total 
Re- 
serves. 


26,5 


26,500 
23,00c 

14.430 
16,010 

34,000 
29,000 
35.000 
25,000 
10,000 
10,000 

9,700 

7,200 

nil 

nil 
25,000 

23,500 

9,000 

2,500 

igo,ooo 

190,000 

15,000 

10,000 

nil 

nil 

50,000 

45,000 

80,000 

60,000 

19,000 

18,000 

224,270 

2,000 
2,000 

22,440 
17,440 
60,000 
60,00c 

33.000 
30.950 


Divi- 
dend 


,Carried 
For- 
ward. 


% 
71 
5 

63 
6-3 

8 

8 
25 
25 

6 

6 
10 

9 

nil 
nil 

5 

6 
10 
10 

74 

7i 
10 

8 
15 
15 
10 

8 
ro 
10 

8? 
10 

15 

4 
3j 

7 
7 

10 
10 

5 
5 


£ 

3.550 
2,760 

23.730 
23,200 

57.580 
25,760 
16,220 
23,790 

2i,3io 
12,770 
14,640 

13.630 
nil 
nil 

2,410 
1.730 
66,800 
56,090 
4.050 
3.750 

3.450 
18,830 
61,900 

43.945 
20,600- 
16,620 
55.980 
34.980 
12,620 
14,220 
16,700 

2,050 
1,000 

12,300 

7,680 

41,940 

37.5'0 

44,760 
a8,6oo 


OILFIELDS    PRODUCTION. 

Baku  Russian. — For  two  weeks  ended  January  12  and  19, 
66,550  and  57,625  poods  respectively. 

IJibi  Eibat. — From  company's  wells  for  week  ended  January  6 
634  tons,  and  for  week  ended  January  18  606  tons. 

European  Oilfields. — For  week  ended  January  20,  60,100 
poods. 

Maikop  Orient. — Plot  435a,  Well  3,  for  week  ended 
January  26,   14,800  poods. 

Russian  Petroleum. — For  week  ended  January  19,  38,085 
poods. 

United  British  Oilfields.— For  week  ended  Wednesday,. 
February  20,  569  tons. 


You  should  make  sure  that,  according  to  the  amount  of  your 
income,  you  have  not  paid  a  higher  rate  of  tax  than  that  for 
which  you  are  truly  liable.  It  is  not  so  likely  that  that  will 
have  happened  in  regard  to  earned  income,  but  it  is  extremely 
likely  to  have  happened  in  the  case  of  unearned  income.  If 
so,  the  remedy  is  a  claim  for  repayment,  and  if  you  have  any 
doubt  you  ought  at  once  to  see  the  Surveyor  of  Taxes  for  your 
district.  Remember  that,  if  you  act  before  April  5  of  this 
year,  you  can,  if  necessary,  go  back  to  April  5,  1914. 
(To  be  continued.) 


William  Hohenzollern,  "  Kaiser,"  talks  thusly  to  the  greedy 
spirits  of  the  German  Agricultural  Society: — "The  German 
sword  has  prepared  the  way  for  peace.  German  industriousness 
and  perseverance  will  bring  us  a  blessed  future.  Look  ahead  ! 
Trust  in  God  1 " 


THE  LONDON  CITY  AND 
MIDLAND  BANK  Limited 

will  supply  ail  information  respecting 

NATIONAL 
WAR  BONDS 

and  invites  investors  to  make  their 
applications  for  the  same  at  any  of  its 
offices  throughout  the  United  Kingdom 


HEAD 


OFFICE:  5,  THREADNEEDLE 
LONDON,  E.C.2. 


STREET, 


224 


^be  ^n'peetors'  TReview.  marc„  2,  .9.8. 


TO    FINANCIERS 

Investors  and  others. 


DURING   Business    Men's   Week  strenuous  efforts  will  be 
made  to  create   a   record   sale   of    NATIONAL    WAR 
BONDS. 

Without  the  support  of  members  of  the  banking  profession, 
financiers,  business  men  and  those  who  hold  positions  of 
responsibility  and   authority,  little  success   can   be   anticipated. 

TO-DAY  YOUR  HELP  AND  SUPPORT  ARE 
EARNESTLY  REQUESTED. 

It  is  hoped  that,  wherever  possible,  money  on  deposit  at  the  Bank,  surplus 
monies  in  hand,  available  trust  funds,  and  liquid  assets  of  all  kinds,  will  be 
invested  in  NATIONAL  WAR  BONDS  during  the  course  of  next  week. 

To  men  of  experience  the  advantages  afforded  by  NATIONAL  WAR 
BONDS  and  the  exceptional  terms  offered  need  little  demonstration.  The 
further  call  of  patriotism  and  duty  will  surely  make  an  irresistible  appeal  to 
all  who  realize  the  necessities  of  the  moment. 

Mr.  BONAR  LAW  says: 

"  /  have  once  again,  on  behalf  of  the  Gofernment,  to  as^  the  peop/e  of 
this  country  to  place  their  financial  resources  at  the  disposal  of  the  State  in 
order    that    ive   may    have    the    means   to    carry    through    the    war    to  a 
successful  conclusion. 

"  /it  this  moment  it  is  more  than  ever  imperative  that  we  at  home 
should  do  our  part  in  support  of  the  great  cause  for  which  those  dear  to  us  are 
fighting  and  suffering.  The  result  of  the  week  by  week  borrowing  has  so  far 
been  most  encouraging,  and  I  am  confident  that  you  will  save  all  that  you  can 
and  deposit  your  money  direct  with  the  State  by  buying  National  IVar  Bonds." 


BUSINESS  La.  &^^^MEJfSWEEK 


'Business  Men's  Week.— organised  by  the  Aldivych  Club  at  the  request  of 
The  D^tional  War  SaVtngs  Committee. 


March  2,  1918. 


Zbc  investors'  IReptew. 


225 


ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head  Office:  BARTHOLOMEW  LANE,  LONDON,  E.C.  2. 


ASSETS    EXCEED    £24,000,000. 

Ohaipman  ■ 
The    Hon.    N.    CHARLES    ROTHSCHILD. 

The  operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  information  respecting 

ESTATE    DUTY   «nd 

CHILDREN'S  EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  application 
to  the  Head  Office  as  above, 
OP  to  any  of  the  Offices  op 
Agencies   of    the    Company. 

.  O.  MORGAN  OWEN,  General  Manager, 


LIFE  &  PROPERTY 
ASSURANCE  CO.,  LTD. 


NATIONAL  BENEFIT 

ASSETS   EXCEED        .  -        £1,000,000. 

Attractive   LIFE,    FIRE,  ACCIDENT  &  MARINE  Policies. 

HEAD  offices; 
NATIONAL    HOUSE,    Newgate    Street,   LONDON,    E.C.  I. 

Managing  Director:  J.  Francis,  J. P.,  F.S.S. 


LIFE  ASSURANCE  AT  MINIMUM  RATES. 

A  Plan  of  Assurance  Specially  Adapted  for  Present  Times. 

For  particulars  address  the 

GRESHAM  LIFE  ASSURANCE  SOCIETY, 

St.  Mildred'.  House,  Poultry,  E.C.  LTD., 

POUNDCD      1040.  FUNDS      CIO.SOO.OOO. 


THE  GRESHAM  FIRE  AND  ACCIDENT  INSURANCE 

SOCIETY,  LIMITED, 
Transacts  all  classes  of  Fire  and  Accident   Business. 

Chiee  Ofpick  :    St.  Mildred's  House,  Poultry,  Lohdon,  E.C. 


Xlbe  Snv?e8tor8'  IRepiew. 

Money    and   Credit   Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5 J  percent,  on 
Thursday,  April  5,  1917.) 

Norfolk  House,  Friday  Evening. 

Drafts  on  market  resources,  as  indicated  by  the  Bank 
return,  have  been  severe  during  the  past  week.  Some- 
times there  has  con.scquently  been  a  certain  degree  of 
.scarcity  in  the  short  loan  market,  but  that  has  not  pro- 
vented  discount  rates  from  being  inclined  to  flabbiness. 
A  week  ago  the  quotation  for  Bank  paper  of  all  usances 
was  a  uniform  3I  per  cent.  Yesterday  it  was  for  all 
usances  below  six  months  often  -^  under  that  figure, 
and  money  has  ranged  from  2!  to  3}  per  cent.  The 
market  is  no  doubt  controlled  by  the  Treasury,  which, 
being  able  to  dictate  rates  on  "  Treasuries,"  keeps  the 
mnrket  down.  Disbursements  vesterdav  of  Army  pav 
and  repayments  of  large  chunks  of  matured  Treasury 
bills  helped  to  make  the  market  as  it  were  sodden  with 
credit  at  the  end  of  this  week.  .Should  this  condition 
prevail  during  next  week,  it  ought  to  have  a  sensible 
effect  in  swelling  the  real  cash  subscriptions  for 
National  War  Bonds. 

The  most  remarkable  change  in  the  Bank  return, 
especially  in  view  of  what  has  ju.st  been  stated  about 
the  position  of  the  Money  market,  is  a  decline  of 
;^7, 112,000  in  the  other  deposits.  That  is  an  amount 
which  should  have  had  a  hardening  effect  on  rates  of 
interest  in  ordinary  circumstances,  especially  as 
;^4,o88,ooo  of  the  withdrawals  were  piled  on  to  the- 
public    deposits.     The   flush  of  disengaged  credits   is, 


however,  so  large  that  the  withdrawals  of  a  large 
amount  from  private  or  "  other  "  deposits  produces 
no  apparent  effect.  Besides  ad-ding  to  the  public  de- 
posits, ^"2,800,000  of  Governm.cnt  securities  were  paid 
off.  The  only  other  notable  movement  was  an  increase 
of  ;^i, 044,000  in  the  note  circulation,  but  this  was 
balanced  by  ;^88i,ooo  added  to  the  coin  and  bullion, 
so  that  the  decrease  in  the  reserve  is  a  mere  ;^i62,ooo. 
It  is  noticeable  that  the  coin  and  bullion  held  is  now 
^5.057.000  larger  than  it  was  a  year  ago.  In  spite 
of  a  slight  decrease  in  the  reserve,  its  proportion  to  the 
liabilities  is  i  per  cent,  up  at  18J  per  cent. 

The  banking  world  is  making  history  rapidly  just 
now.  Arrangements  have  been  completed  for  a  joint 
working  scheme,  operative  as  from  the  beginning  of 
this  month,  between  Williams  Deacon's  Bank,  the 
Anglo-South'  American  Bank,  and  the  London  and 
Brazilian  Bank.  Agencies  of  the  two  last-named 
banks  have  been  established  at  the  Mosley  Street  office 
of  Williams  Deacon's  Bank  at  Manchester.  A 
separate  foreign  exchange,  shipping  and  agency  depart- 
ment of  Williams  Deacon's  Bank  has  been  set  up,  and 
there  will  be  in  attendance  at  this  office  representatives 
of  the  two  overseas  banks  to  deal  with  all  inquiries  and 
business  relating  to  Spain,  Portugal,  and  South  and 
Central  America.  This  will  be  of  very  considerable 
direct  advantage  to  merchants,  manufacturers,  agents 
and  spinners  in  Lancashire.  As  agents  for  the  Anglo- 
South  American  and  the  London  and  Brazilian  banks, 
Williams  Deacon's  Bank  will  make  advances  upon  ship- 
ping documents,  an  arrangement  which  will  save  the 
two  dajs  formerly  wasted  in  sending  such  documents 
to  London  and  receiving  the  proceeds  back  in  .Man- 
chester. Acceptances  will  also  be  given  in  Manchester, 
and  direct  banking  arrangements  will  be  available  be- 
tween all  branches  of  the  three  banks.  The  scheme  is 
a  novel  one,  and  indicates  the  active  desire  of  bankers 
to  improve  financial  facilities  for  post-war  trade  re- 
quirements. The  Anglo-South  .American  and  the  Lon- 
don and  Brazilian  banks  cover  between  them  the  whole 
of  the  .South  American  continent,  so  that  the  scheme 
has  considerable  possibilities. 

Another  development  is  the  formation,  now  prac- 
tically complete,  of  a  British  metal  bank.  It  is  under- 
stood that  the  title  of  the  institution,  which  has  in- 
fluential support,  is  the  National  Metal  and  Chemical 
Bank,  the  capital  of  which  has  been  fixed  at  one  million 
sterling.  The  object  of  the  bank  will  be  to  finance  the 
establishment  of  a  smelting  industry  in  this  country, 
which  will  render  us  completely  independent  of  German 
supplies  of  non-ferrous  metals. 

The  amount  of  the  French  loan  to  Morocco  to  be 
offered  to  the  public  this  month  has  been  fixed  at  172 
million  francs  (;^6, 880,000).  The  loan  will  bear  5  per 
cent,  interest,  and  will  be  exempt  from  all  taxes,  pre- 
sent and  future.  It  will  be  guaranteed  by  the  French 
Government.  The  price  of  issue  has  been  fixed  at  89 
per  cent. 

Count  Roedern,  the  German  Imperial  Treasurer,  laid 
but  a  brief  statement  of  his  Budget  before  the  Reichstag 
because  "he  is  asking  for  no  funds  for  war  costs." 
That  cannot  be  because  no  costs  are  being  incurred, 
for  the  outlays  o'i  Germany  on  the  vi'ar  must  now  be 
heavier  than  ever,  only  they  fall  upon  an  exhausted 
community,  and  must  be  hidden  in  faked  loans.  Even 
so,  current  requirements  are  ^143,750,000  above  those 
of  the  previous  year,  mainly  owing  to  the  increased 
interest  on  loans  ;  but  the  Count  declared  that  the  war 
profits  tax  with  the  additional  levy  would  exceed 
;£"275,ooo,ooo,  w  hich  is  marvellous.  The  coal  tax  alone 
brings  in  ;^3, 500,000  a  month,  and  the  Count  hoped 
that  in  consequence  d'f  the  votes  of  recent  years  the 
empire  would  emerge  from  the  war  "  without  uncovered 
deficits,"  which  is  indeed  a  bold  boast.  Fresh  taxa- 
tion, none  the  less,  will  be  laid  before  the  Reichstag  by 
Easter,  and  it  will  be  interesting  to  learn  by  what 
methods  the  Junker  Government  proposes  to  enlarge  the 
revenue.  The  sum  of  it  all  was  that  the  enemy  on  the 
West  front  is  not  to  be  left  in  doubt  as  to  Germany's 
will  and  power  financially  to  stand  "  the  final  battle  " 
there  also.     Well,  so  be  it ;  let  him  come  on. 


226 


TEbe  Jnpestore'  IReview. 


March  2,  1918. 


Several  rather  striking  movements  have  txxurred  in 
the  foreign  exchange  market  this  week.  Amsterdam 
cheques  have  fallen  23  points  to  10.42J  florins  to  the 
pDund  sterling,  but  the  cause  of  this  heavy  decline  is  not 
quite  clear,  unless  it  is  due  to  the  removal  of  the  cable 
emTaargo.  Spanish  exchange  has  also  moved,  against 
this  country,  the  pound  sterling  being  equal  to  only 
1 9.57 J  peseta^  A  further  substantial  advance  has 
occurred  in  *andinavian  rates.  Stockholm  is  33^ 
points  higher  at  14.72 J  kr.,  Christiania  has  risen  33 
points  to  15.32^  kr.,  and  Copenhagen  loj  to  15.60^  kr. 
This  advance  is  due  to  the  same  influences  that  have 
tended  to  reduce  Scandinavian  credits  in  this  country. 
The  Swiss  exchange  has  also  moved  in  favour  of  this 
country,  being  10  points  higher  at  21.27^  frs.  The 
Rio  exchange  has  not  yet  benefited  from  the  publica- 
tion of  the  details  of  the  agreement  with  P'rance  which 
will  place  1 10,000,000  frs.  at  the  disposal  of  Brazil  in 
Europe. 

Silver. 
About  silver  there  is  little  to  say.  The  market  has 
been  somnolent  all  the  week,  and  the  only  move,  as 
Mocatta's  point  out,  has  been  a  fall  of  Jd.  on  Feb- 
ruary 22.  The  price  remains  at  42 Jd.  The  same 
circular  adds  that  the  United  Slates  Government  con- 
tinues to  buy  silver  in  large  quantities  for  .subsidiary 
coinage,  and  seems  willing-  to  pay  a  considerable  pre- 
mium over  the  New  York  quotation.  In  Montagu's 
circular  it  is  stated  that  the  silver  holding  ol  the  Indian 
Treasury  continues  to  shrink,  but  substantial  additions 
will  accrue  before  long,  as  a  consequence  of  Govern- 
ment purchases.  The  decline  between  February  15 
and  22  was  61  lacs  of  rupees,  bringing  down  the  silver 
reserve  to  1,284  lacs.  The  notes  in  circulation  at 
10,384  lacs  are  nl.so  7  lacs  lower.  The  Bombay  stock 
on  February  8,  the  latest  date  to  hand,  was  3,200  bars, 
and  in  Shanghai  on  the  23rd  ult.  about  29,100,000  in 
syce  and  $13,000,000  were  held,  an  increase  of  200,000 
ozs.,  but  no  change  in  the  dollars. 

Applications  for  the  Rs.  60,00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Rs.  2,19,55,000.  Of  these 
Rs.  55,49,000  were  allotted  in  deferred  transfers,  and 
Rs.  4,51,000  in  immediate  tran.sfers.  Tenders  for  bills  and  de- 
ferred transfers  at  is.  4  29-32d.  and  for  immediate  transfers 
at  IS.  5d.  received  about  27  per  cent. 


BANK    OF    ENGLAND 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  i2,  for  the 
Week  ending  on  Wednesday,  February  27,  1918. 
ISSUE    DEPARTMENT. 


Notes  Issued 


I 

76.737.275 


Government  Debt.. 
Otber  Securities    ., 
Gold  Coin  and  Bullion 
Silver  Bullion 


^76.737,275 
BANKING    DEPARTMENT. 


Propcletora'  Capital 
Beat 

Pablio  Deposllsdncluding 
Exchequer,  Savings 
Banks,  Commissioners 
of  National  Debt,  and 
Dividend  Accounts)  .. 

Other  Deposits 

S«*eD  Day  and  other  Bills 


£ 

'4.553.000 
3,563,021 


42,649,718 

124,767,163 

10,219 


Dated  February  38, 1918. 


fi85,543,"2l 
NAIRNE,  Chief  Cashier. 


£185.543,121 

J.G 

BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
Feb.  28. 

Feb.  20, 
1918. 

Feb.  27, 
igi8. 

Increase. 

Decrease. 

3,571.262 

47.846,179 

167,992,209 

27,726 

82,445,859 
"7,383,137 
34,161,380 

58,584,710 
54,796,090 
158  P.O. 

Liabllitlea. 
Beat 

Pub.  Deposits  .. 
Other    do. 
7  Day  Bills 
Assets. 
Gov.  Securities. 
Other       do. 
Total  Reaerve.. 

NoteClrculailoo 
Coin  and  Bullion 
Proportion 
Bank  Rate 

£ 
3.501,354 
38,561,994 

'31,879.319 
10,097 

56.350,582 
101,441,055 
30,714.127 

46,207,340 
58,471.467 

18   p.c. 

5     ,. 

£ 

3.563.021 

42,649.718 

124,767,163 

10,219 

56.3;o,o8j 
98,641,366 
30,551.673 

£ 

47.251,225 
59.352.898 

l8-2  p.c. 
5       „ 

6i.f67 

4,087,724 

121 

Decrease. 

500 

2,799.689 

'62,454 

7,112,156 

Inerease 

1,043,885 
881.431 
•2  p.c. 

£ 

7,ii2,i;6 
Increase. 

7,112,156 
Deereaae. 

LONDON    BANKERS'   CLEARING. 


£ 
11,015,100 
7,4^4,900 
58,287,275 


£76,737,275 


Government  Securities  ..  56  350,082 

Otber  Securities    ..        ..  98,641,366 

Notes 29,486,030 

Gold  and  Silver  Colo      ..  1,065,623 


Date. 

{       Increase.       |      Decrease. 

January 

February  6 
„  '3 
„  20 
,.        27 

1918. 
2,073.224,000 
44  ,563,0.0 
383,791,000 
395,54.SO«) 
385,732,000 

1917. 
1,865,125,000 
430,225,000 
440,039,coo 
474.857,«» 
434,403,' 00 

208.099,000 
10,338,0:0 

£ 

56,745,000 
79,jn,ooo 
4*1,671,000 

Toul 

3,378,858,000 

3,644,649,000 

218,437.000 

l84,228,C0O 

CURRENCY  NOTES. 

Return  of  Curreocy  Notes  for  the  week  ended  February  27,  1918. 


£1  notes 
10s.  notes 
Note  certificates 
Previous  total 


Issued. 


£ 
S,oi4,6;o 
1,428,195 
1,090.000 

S35. 489.830 


843,022.716 


Cancslled. 


£ 

3,392,730 

J,405.5<2 

4f  o,<  00 

_6l9i354.937_ 

624.6,3,180 


Outstanding. 


1 59.293 .6?8 
36,8^^,858 

22,290,000 


218,409,536 


Ratio  of  gold  held  against  notes,  this  week,  [4'53  pc. ;  last  week  14  66  p.c. 
PUBLIC   INCOME   AND    EXPENDITURE 

(For  7  days  ended  Feb.  23.) 


Revkhue. 


i 

Customs  1,868,000 

Excise 1,065,000 

Estate,  &c.,  Duties  . .        . .       563,000 

Stamps — 

Land  Tax  and  House  Duty  220,000 
Property  and  Income  Tax  14,892,000 
Excess  Profits  Tax  ..         ..    4,059,000 

Land  Values •         30,000 

Post  OflSce ioo,oco 

Crown  Lands 70 

Sundry  Loans — 

Miscellaneous ^0,085 

Bullion  advances  repaid  ..  70,000 
ForTreasuryBills for  Supply  34,380,000 
5%  Exchequer  Bonds,  1922. .  — 
6%  Exchequer  Bonds,  1920. .  — 
National  War  Bonds  .,*22,23i,ood 
War  Savings  Certificates..  i,30o,oco 
4%  War  Loan,  1929-1942 1  _ 

5%  War  Loan,  1929-1947  J  * '. 
Other  Debts  created   under 
War  Loan  Act,  1915,  and 
Finance  Act,  igi6..         ..  16,495,278 
Telegraph  Money  Act,  1913        — 
Under  Post  Office  Rly.  Act, 

1913 — 

Under  Military  Works  Act, 

1897.1903       — 

Under  Public  Buildings    ,.        — 
Under  Housing  Act..         ..        — 
Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds  — 

China  Indemnity      ..         ..        — 
East    Africa    Loan     repay- 
ments          ..        — 

Suez  Canal  Drawn  Shares. .         — 

Ways  and  Means  Advances        — 

Decrease      in      Exchequer 

balances 


Expenditure. 


£  , 

1,230,562 
1,643,900 


93,847 


£97,617,210 


27,'^o 


45,500,000 
100,000 


437.748 


National  Debt  Service 
Inter-  st,    &c.,  on  War  Debt 
Development  8t  Road  Impvt 
Payments  to  Local  Taxation 
Otner     Consolidated     Fund 

Chwges        

Supply  Services 
Bullion  Advances     .. 
For    Advat  ce    for    Interest 
on  Exchequer  Bonds  un- 
der   Capital   Expenditure 
(Money)  Act,  1904  ..        ..        — 
For  Treasury  Bills  ..         ..  37.850,coo 
War  Loan  and  Exchequer 

Bonds 
Other  Debt  under  War  Loan 

Acts,  1914-16 

For  Kxchequer  Bonds  under 

Section  &i  of  Finance  Act, 

1916,  and  Sec:ian  54.  1917 

Under   Telegraph    (Money) 

Acr,  19(3 

Under    Post    Office     (Lon- 
don) Railway  Act,  1913  •  • 
Under  Military  Works  Acts 
Under  Housing  .\ct,  1914-. 
Public    Buildings   Expendi- 
ture Act,  1903 
Old  Sinking  Fund.  1907-8.. 
Sinking  Fund,  1914.. 
China  Indemnity 
East  African  Loan  . . 
Cunard  Agreement  Act 
Expenditure  Certiftca'cs  .. 
Depreciation  Fund  . . 
Suez  Canal  Drawn  Shares. . 
Temporary  Advances  Repaid  10,000,000 
Increase       in       Exchequer 
balances       — 


255,OfO 
500,000 


jC97.6i7r2io 


♦Excluding  sales  through  banks  which  have  not  yet  been  brought  to  account 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.), 


Feb.  I,  igi8.      Jan.  25,  1918. 


Gold  coin  and  certificates 
Gold  Settlement  Fund 
Gold  with  foreign  agencies  . 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

Total  gold  reserves  . .  i 
Legal  tender  notes,  silver,  &c.| 

Total  reserves  . .  . .! 
Bills  discounted— Members'..! 
Bills  bought  in  open  market    ' 

Total  bills  on  hand     . . 
U.S.  Gov.  long-term  sec.       . .! 
U.S.  Gov.  short  term  sec.      . 
Municipal  warrants 
Loans  on  gold  coin  and  bullion 

Total  earning  assets  .. 
Due  fm  other  Fed  Resbnk— n. 
Uncollected  items 
Total  dedctns.  fm  gross  dep* 
5%Red.FuDdagFed.Res.bknts 
All  other  resources 

Total  resources 

Capital  paid  in 

Surplus 

Government  deposits  . . 
Due  tomembrs-Res.  account 
Due  to  non-mbrs— clearing  ac. 
Members'  bank  deposits — nett 
Collection  items 

Total  gross  deposits    . . 

F.R.  notes  in  actual  circulat'n 

F.R.  bk  nts  in  circn— nett  Uab. 

All  other  liab,  in  for  Govcrdts 

Total  liabilities 

Gold  res.  ag  nett  deposit  liab 
Gold  res  ag  F.R.  nts  in  act  circ 
Ratio  of  gold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio  of  total  res.  to  neti 
deposit  and  F.R.  note  lla 
bilities  comb  ned 


93,951,800 

78,724,800 
10,500.000 


£ 

91,402,400 

77,642,000 
I0,<00,000 


Feb.  2,  1917. 


6t,392,8co 
42  592,200 


i83,i;6,6oo 

156,333.400 

3,89i,4?'0 


343,404,400 
1 1-.687  OOP 


355,091,400 
121,355.600 
57.961,000 


182,5*4.400 
158,765,800 

3. 991. 200 


K  3,985,000 

54,t)i4,8oo 
367,000 


345,301,400 
11.750,400 


1 79,3  It, 600 

10,746,800 

15.779,600 

761,000 


356,55 1. *'oo 

125.512.400 

54.782,400 


159,166,800 
2.437.000 


161,603,800 
2.941,40a 

18  622.401 


206,604,000 

8,891,200 
f4,3t8.foo 


73,290,000 
107,400 
111,800 


635. 204. 6c o 


14,524  000 

226,PoO 
26,558,000 
295,728,800 

38,256,600 

iOt353.8oo 


370,897,210 

247,220,200 

1,600,000 

736.400 


180314,800 

10,105,000 

14,533.800 

980,40* 


205.934.coo 
6,501.000 

64,740.600 


21,563,-00 
6,110,000 
3,729.400 
2,566,400 


71,241,600 

107,400 
40  200 


633,875.000 


14,487,800 

226,800 

27,138,200 

296,148,630 

38,991,000 
7  539.400 


635,204.600 


63.% 


65-2% 


369.817,200 

246,986,800 

i,6:o,coo 

756400 


33.4,69,000 
2.537.400 
25,322,200 
27,359,600 
80,000 
?,597,oco 


226,110,000 


11,145.000 

4.f66.6o3 
137.975.600 

20,246,400 


162,888.600 
52,006,000 


633.875000 


226,110.000 


61.5% 
65-9% 


633% 


65.4% 


85  1% 


86.4% 


March  2,  1918. 


(The  5nve8tor6'  IReview. 


227 


I 


N£W   YORK   ASSOCIATED    BANKS   (dollar  at  48.). 


Loans       

Reserve  held  in  own  Vaults  . . 
Reserve  held  in  Fed.  Res.  Bk. 
Cash  in  own  Vaults    .. 
Reserve  held  in  Other  Depos. 
Nett  Demand  Deposits 
Nett  Time  Deposits    ., 

Circulation         

Eioess  Lawful  Reserve 


Feb.23,1918 


£ 

850,020,000 

3,272,000 

99,170,00c 

ip,730,ooo 

1,640,000 

715,460,000 

40,294,000 

6,854,000 

8, 748',  000 


Feb.i6,igi8. 


839,664,oco 

3,362,000 

i03.290,coo 

19,918,000 

i.590,coo 

730,158,000 

40,226,000 

6,834,003 

10,096,000 


Feb.  9,  1918. iFeb. 24,1917. 


839,054,000 

3,570,000 

iir,g20,ooo 

19,634,000 

i,8iat000 

735.830.000 

40,388,000 

6,8^6,000 

i9,i82,oi'o 


£ 

694,846,000 

106,134,000 

39,000,000 

11,282,000 

701,288,000 

33,526,000 

5,736.000 

33.962,000 


Lawful  Reserve  consists  of 
Time  Deposits 


18%  of    the  Demand  Deposits  and  5%  of     the 


NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES  (dollar  at  4s  ) 

Feb.  23,  1918. 

Feb.  16,  1918. 

Feb.  9,  1918. 

Feb.  24, 1917. 

Loans  

Specie 
Deposits 
Legal  Tenders 

I 

173.304,000 

3,170,000 

170,216,000 

16,750.000 

i 

170,334,000 

3,634,000 

170,082,000 

16,594,000 

168,620,000 

3,654,000 

167,734,000 

14,878,000 

£ 

151,228,000 

I3.450,coo 

160,916, oco 

2,228.000 

BANK 

OF  FRANCE   (25  francs  to  the  £|. 

Feb.  28,  igi8. 

(. 

Feb.  21,   1918. 

Feb.  14,  1918. 

Mar.  1,  1917. 

I 

£ 

Sold  In  band 

133,241,520 

133. '84,720 

133,129,880 

128,131,120 

Silver  In  hand 

10,197,040 

10,136,600 

10,086,720 

10  820.480 

Bills  dlsooanted 

52,489,360 

50,114,920 

53,394,160 

22,272,920 

Advances 

46,815,320 

48,503,080 

48,684,160 

49.378,760 

Ko:e  oircutation 

972,332,280 

959.451.480 

952,847,040 

723.897,440 

P  tbiic  deposits 

2,039,080 

771,760 

1.676,720 

3,707,240 

Private  deposits 

103,249,000 

104,323,880 

105,377,040 

98,222,640 

Poreign  Bills.. 

350,000 

8;5,400 

708,080 

86,2to 

Proportion  between  bullion  and  circulation  23.13  per  cent.,  against  23.43  per 
t  cent,  last  week.    Advances  to  the  State  jf5i8,ooo,ooo,  increase  £12,000,000.    The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium.  1^19,609,600, 
;  decrease  £121,280,  ind  at  the  branches  £24,975,800,  decrease  £43t28o. 

IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  £). 


Feb.  23,  1918  Feb.  15,  1918.  Feb.    7,    1918.  Feb.  23,  1917. 


Total  Coin  &  Bullion 

Treasury  Notes 

Hills  cisoouQted 

A Ivances 

Note  ciroulatloD 

Deposits 


126,169,150 
62,713,500 
6i7.79*.750 
300,150 
556,123,550 
303.460,900 


£ 

126,112,900 
61,466,300 
643.775.150 
351,450 
554,885,500 
310,792,050 


126,036,850 

61,929,250 

630,463.750 

425,650 

556i"83,9oo 
315,167,050 


127,092,750 
18,405,450 
4»5."  5,550 
497,000 
394,o66,7CO 
196,743,000 


•      ii 

I 

I 

I 
I 


Clearing   House    return    during   January   £478,428,170,    against  ;C 487.563. 7^5 
,  in  December. 

BANK    OF    SPAIN  (25  pesetas  to  the  £) 


Gold        

Silver • 

Fo  e.i-ii  Bills     .. 
Disco  loia  and  bbort  Bills 
Tceiisury  Acoount,  &c.  ..j 

Notes  In  CIroulatlun  .. 
Carrent   Aooounts,   Dep0Bit^.| 
Dividends,  Interests,  Ac.     . .  I 
Goverutuent  Seourities        ..' 


srAin  (£3  pesetas  lu  lue  i.], 

Feb.  16, 1918  Feb.  9, 1918   Feb.  j,  1918  Feb.  I7i«9'7 
1.  £      "  I      '  £ 


£ 

79,498,101 

28,301,819 

3.498,959 

31.057.719 

25.450,316 

113. 279.761 

36,245,163 

■  .872,994 

6,081,360 


£ 

79,138,368 

28,265.027 

3,486,003 

28,270,097 

26,991,740 

114,037,296 

38,767,462 

1,751.965 

1,051,886 


£ 

79,024,705 
28,492,588 
3.536,575 
28,077,028 
26,312,300 

l'3. 105.750 

38,446,675 

2,301,420 

1,176,247 


£ 

5-!.7'9.543 

29.773.2f3 

3,440,65a 

26,121.163 

27,166,336 

95  8j2,099 

30,615  59« 

1,715.453 

l.257.'3' 


NETHERLANDS  BANK  (12  Florins  to  the  X). 


Gold  and  Silver 
Bill*  and  Advances 
Note  circulation 
Deposits., 


Feb.  23, 1918 

£ 

60,164,418 

12,899,916 

70.676,333 

6.768,756 


Feb.  16, 1916. 


Feb.  9,1918. 


60,501,250 
14,321,666 
71,394,666 

7i345,250 


£ 

60,309,250 

15,349.999 

72,258,749 

7,712,500 


Feb.  24, 1917. 


£ 

49.844  33J 

13,824,833 

61,257,000 

6,365,083 


BANK  OF  NORWAY  (18  kroner  to  the  £|. 


and 


Gold    .. 
Balanoe  abroad 
Foreign  Bills 
Gover'nt  Securities. . 
Discounts  &  Loans. 
Notes  in  Circulation 
Deposits  at  notice.. 


Feb.  15, 1918. 


£ 
6,526,000 

3,665,000 

713,000 

19,878,003 

17,331,000 

10,000,00c 


Feb.  7,  1918 


£ 
6  326,000 

3,774,000 
718,000 
19,880,000 
■7,133,000 
10,312,000 


Jan.  )i,  1918. 


Feb.  15,  1917, 


£ 
6,414,000 

3,830,000 

720,WO 
20,545,000 
16972,000 
11,025,000 


£ 
6,643,000 

3,876,000 
740,000 
9,377,000 
13.578,000 
4,512,000 


SWISS  NATIONAL  BANK  (25  francs  to  the  £). 


Gold  and  allvet 
Bills     .. 
Note  olroulation 
Current  and  deposit 
,»ccoiints 


Feb.  15, 1918.     Feb.  7,  1918. 


Jan.  31,  1918, 


£  £ 

16,787,100  16,723,652 

7,203,664  10,185,432 

24,429,073  !     24,811,716 


2.963,916 


5,469,712 


£ 
16,693,852 
10,587,276 
15,324,100 

5. 525.9^0 


Feb.  15, 1917, 

£ 

15,863,712 
6,727,016 
19,617,8^6 

5,520,032 


I 


BANK 

OF    SWEDEN  (18  kroner  to  the  £) 

. 

Jan.  26, 1918. 

Jan.  19,  igiS. 

Jan.  n,  1918. 

Jan.  27,  1917, 

£ 

£ 

£ 

£ 

Gold 

13,125,000 

13,130,000 

13  711,000 

10,364,000 

Balance   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

7,196,000 

7,407,000 

7,239,000 

8,400,000 

Govt.  Securities  ,. 

3,436,000 

3  436,000 

2,8So,ooo 

3,549,000 

Discounts  and  Loans 

11,989,000 

12,686,000 

13.516,000 

5,282,000 

Notes  In  olroulption 

27,868,000 

28,395,000 

28,902,000 

19,853,000 

Deposits  at  notice  . . 

8,143,000 

8,005,000 

8,66  ,,000 

6,692,000 

BANK   OP   ITALY    (25  lire  to  the  X). 


Dec.  31, 1917  Dec. 30, 1917 


Total  casli 
Inland  Bills 
Foreign  Bills    .. 
Advances 

Goverament  securities 
Circulation 
Deposits  at  notice 
Current  accOHBta 


£ 
45.379,080 
30,285,400 
885,000 

■7,453,200 
8,924,840 
l6i,-67,f0ff 
35,458,280 
20,663.840 


Dee. 10,  igiy.Dec.  31, 1916 


45, 


£ 

43,77«.o8o 

32,174,000 

929,120 

20,894,080 

8,669,960 

256,695,760 ;  135, 

33,454,720  1    to 

21,933,760  I  13 


£ 
624 ,140 

,5M,>20 
832,400 
,280,520 
.■90,400 
,069,980 
,400,880 
.365,440 


LONDON  COURSE  OF  EXCHANGE. 

Usance. 

Feb.  26,  1918. 

Feb.  28,  1918. 

Sellers. 

Buyers 

Sellers. 

Buyers. 

Amsterdam  . .     . . 

Cable  transfers 

10.52 

1057 

10.50 

10.J4 

Three  months'  bills . .    . . 

— 

— 

Paris      

Cable  transfers 

27.17 

27.22 

27-^5 

27.20 

Three  months'  bills. ,     . . 

27-57 

27.62 

27-55 

27.60 

Switzerland..     .. 

Cable  transfers 

21.30 

21.40 

21.17 

21.27 

Three  months' bills..    .. 

21,65 

21.75 

21.52 

21.62 

Petrograd     , .     . . 

Cable  transfers 

nom. 

nom. 

nom. 

nom. 

Genoa,  &c 

Cable  transfers 

41.45 

41-55 

4i.;o 

41.83 

Spain     

Cable  transfers 

19.62 

19-72 

19.48 

■s-A" 

Three  months' bills  .,     .. 

37 

58 

57i 
29} 

sei 

Lisbon  and  Oporto 

Cable  transfers 

29i 

30I 

3°A 

Copenhagen..     .. 

Cable  transfers 

15.48 

15-58 

■5.58 

■3.68 

Christiaoia  ..     .. 

Cable  transfers 

■525 

■  5-33 

■5-42 

15.52 

Stockholm   ..     .. 

Cable  transfers 

14.62 

14.72 

.4,72 

14.82 

FOREIGN  RATES  OF  EXCHANGE  ON  LONDON. 


Method  of 

0  § 

Last 

This 

Quoting. 

It 

Week. 

Week. 

Paris,  cheques 

Francs  to  £1 

25.224 

27-18 

27.184 

Amsterdam,  cheques 

Florins  to  £1 

12.107 

10.70 

10.59 

Italy,  sight 

Lire  to  £"1  .. 

25.22i 

41-45, 

42.02 

Madrid,  sight.. 

Pesetas  to  £1 

25-224 

19-624 

19-574 

Lisbon,  sight 

Pence  to  milreis  .. 

53id- 

29jd 

29id. 

Switzerland,  sight   ., 

Francs  to  £"i 

23224 

21.274 

21.224 

Christiania,  si<;ht 

Kroner  to  £1 

18.159 

■  5-45 

15.40 

Stockholm,  sight 

Kroner  to  £■! 

18.159 

14-85 

14.72* 
15.604 

Copenhagen,  sight   .. 

Kroner  to  j£"i 

18.139 

15.70 

Petrograd,  sight 

Roubles  to  jCio     •• 

94-57 

nom- 

nom. 

Alexandria,  sight 

Piastres  to  £1 

974 

97i 

v\. 

Bombay,  T.T 

Sterling  to  rupee.. 

■  /4 

■/4« 

"'4B 
■/4iJ 

Calcutta,  T.T 

Sterling  to  rupee.. 
Sterling  to  dollar.. 

■/4 

■  /4^ 

Hong  Kong,  T.T 

— 

2/114 

2/114 

Shanghai,  T.T 

Sterling  :o  tael     . . 

— 

4/2: 

4/^ 

Singapore,  T.T 

Sterling  to  dollar.. 

— 

2/3* 
2/'l 

^im 

Yokohama,  T.T 

Sterling  to  yen     . . 
Dollars  to  £1 

24.58d. 

2/lt| 

New  York,  cable 

4-86J 

4-761 

4.76! 

Buenos  Aires,  T.T 

Pence  to  dollar    . . 

47-58d- 

5o4d. 

5o4<i. 

Valparaiso,  90  days.. 

Pence  to  peso 

I4d. 

Mid 

Montevideo,  T.T 

Pence  to  dollar     . . 

3ld. 

'S. 

594d. 

Rio  de  Janeiro,  90  days    . . 

Pence  to  milreis  .. 

i6d. 

i3^d. 

Thirty  and  sixty  day  remttted 
Three  mouths  ,, 

Four  months  n 

Six  months  , 

Three  months  fine  inland  bills 
Pour  months 
Six  months 


OPEN   MARKET  DISCOUNT.  Last  week    This  week 

rer  cent,    rer  cent. 


4-4 


34-ft 

4~4 
4i 


BANK  AND  DEPOSIT  RATES. 


:l=l  ::  % 


Last  week  This  week 
Per  cent.    Per  cent. 


Bank  of  England  minimum  dlsoount  rate 
,,  ,,         short  loan  rates  .• 

Bankers' rate  on  deposits 

Bill  brokers'  deposit  rate  (call) 

,,  7  and  14  days'  notice  .. 

Current  rates  for  7  day  loans         .  • 
M  for  call  loans 


3 

2A 


3 
3 

3i 


The  Week's    Stock   Markets. 


It  requires  a  very  strenuous  optimist  to  find  any- 
thing cheerful  in  the  Stock  markets  at  present.  The 
Tank  campaign  in  the  provinces  for  National  War 
Bond  subscriptions  must  have  mopped  up  a  great  deal 
of  money  that  would  otherwise  have  found  its  way  to 
Throgmorton  Street,  and  as  it  is  to  be  London's  turn 
next  week,  there  is  no  immediate  prospect  of  any  im- 
provement from  the  stockbroker's  point  of  view.  And 
although  people  are  beginning  to  get  a  better  perspec- 
tive of  the  Russian  position,  it  cannot  be  doubted  that 
it  gives  rise  to  grave  anxiety  in  many  quarters,  while 
no  one  can  attempt  to  forecast  how. long  the  present 
chaos  may  continue  or  what  sufferings  the  unhappy 
country  may  have  to  go  through  before  the  dawn  of  a 
better  era  begins  to  give  the  clouds  a  rosy  lining. 
Argentina,  too,  has  again  been  misbehaving — or,  at 
least,  a  section  of  Hun-subsidised  agitators — but  unfor- 
tunately it  is  not  much  consolation  to  be  able  to  put 
one's  finger  on  the  cause  of  these  recurring  troubles  un- 
less at  the  same  time  a  remedy  can  be  found  for  them, 
and  that  appears  to  be  beyond  the  wit  either  of  the 
Government  or  the  railway  companies  to  discover. 
Miscellaneous  and  Industrial  shares  have  received  a  fair 


228 


XTbe  investors'  "Review. 


March  2,  1918. 


I  La>r  I  Thii  II 
IWeeklWeekil 


Consols.... 
War  Loan 


..  5%  i9»9-47- 

•  <  4%i  ■9;9-4>. 

'T^::::::::::::::. 

Austiailan  5}%,  imo-jj  . 

Canada  4%,  1940-60 

„   ■-„,  4*%,  i9«>-5 

N.S.W.  4%.  1933 

Argaatine  4%,  igoo 

Belgian  3% 

Brasil,  1913 , 

„       5%,  I9>4    

Chinese  1896  

I.       igia 

Egypt  Unified  4% 


Caledonian  defd. 

Ct.  Central  pta 

J,        „         dfd 

Ct.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd.  . 
London  Chatham  ord.. .. . 


Canadian  Pacific  

E.  Indian  Guar.  4}  %  debs. 
Grand  Trunk  ord.    

Do.  1st  pf 

Do.  3rd  pf 

Antofagasta  dfd 

Brazil  Common 

B.  A.  &  Pacific 

B.  A.  Gt.  Southern 

B.  A.  Western    

Anglo-South  American   .. 

Bank  of  Austrslasta 

Bank  of  N.S.  Wales 

Barclay  &Co."A" 

Do.       "B" 

Capital  &  Counties  , 

Cbarteied  of  India 

Hongkong  &  Shanghai    . . 

Lloyds  , 

London  &  Brazilian 


Armstrong,  Whit  worth .. 
Birmingham  Small  Arm? 

Cammetl-Laird 

Car^o  Fleet 

Dorman,  Long  

Associated  Cement 

Borax  dfd , 

Bovril    

Braeil  Traction  

British  Amer.  Tobacco  pf. 

British  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Kellner 

Coats 

Courtaulds 

Cnnard 

Dennis  Bros 

Eastern  Telegraph   

Kastmans 

English  Sewing  Cotton  .. 

Anglo-Egyptian  "  B" 

Baku  (10s.)  

Burmah 

Lobitos 

Maikop  Pipeline   

Mexican  Eaglepf 

Allagar  j/- 

Anglo-Java  Rub.  «f-     .... 

Anglo-Malay  2/ 

Ayer  Kuning  jf  I 

Batang  Malaka  2/- 

Bekoh2/- I 

Brit.  N.  Borneo  Trust  £1' 

Bukit  Cloh2/- ' 

Bukit  Kajangj^i 

Bukit  Mertajam  2/-  ' 

Bukit  Sembawang  2/-  . .   - 

Carey  United  £1  

Ceylon  Para  2/- 

Chersonese 

Chcvii,  t  2/-   

Dalkeilh2,'- 

Eastern  Invest.  Trust  £ 

Grand  Central  £1 

Gula  Kalumpong  £1 . . . . 

Highlands  £1 

Java  Investmt  nt  £1  .... 


100) 
93rt 
102 


64i 

70 
80 

94 

6«i 

86 

9i 

a 

86 
64ix 

59. 

8i 

i6ii 
84 
9} 
55 

22} 

»33 

5 

3*1 
72 
70 

71 
121 
361 

I2i 

57 

7Jj 

86 

I44x 

25 

43/ 

586 

7 

47/ 

39/6 


N.S.W.  4j%5yl'<l»." 

.1      44%.  i9«-7 

II        5%.  i95"-3 

i>        51%.  1920-2    ... 
New  Zealand  4%,  1929    . 

Queensland  4% 

.1  4i%.  19J0-5    . 

Union  of  S.  Africa  4)%, 

1920-5    

Victoria  44%.  1920-3 

Westn.  Aus.  4%    

Frencli  War  Loan,  5%  . . 

Japan  4j%  (isi),  1905   

5%.  >9o7 

Mexican  j%,  1S99   

Russia4  % 

I.      4i%. '9'^9 

.1      5%i  '9o« 

London  and  N.-W.     ... 
London  and  S.-W.  dfd,  . 

Do     red.  pf.  1914 
Metropolitan 

bo.      5%    pf.. 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastem 

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern  


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San  Paulo  (Brazilian).... 

United  of  Havana 

London  City  Sl  Midland. . 
London  County  &  West*.. . 

London  Joint  Stock 

Nat.  Prov.  ot  Eng.(£ioJ  pdl 
Do.  (£12  pd) 

Parr's    

Standard  of  S. A 

Union  Discount 

Union  &Smiths 


Last 
Weak 


Kynochs  

Mond  Nickel  ord 

South  Durham  Steel  . . 

Thornycroft    

Vickers 


TKa 
Week 


.18 

33 

4"/ 

40/ 

21/ 

M/3 

4S4 

44} 
.8/6 

18/6 

33/1 

33/3 

34/3 

32,6 

lfS» 

•  ) 

3A 

6: 

6Ax 

68 

7A 

4 

4b 

3-i/3 

35/6 

I52i 

'5M 

10/3 

9/9 

54.6 

55/6 

Fine  Cotton  Spinners  . . . 

Forestal  Lan<l 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay    

Imperial  Tobacco  *C'  pf 

Lever  Bros.  '*  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  &  F 

P.  AO.dfd 

Royal  Mail 

Underground  Inc.  Bds.  .. 


Java  Para  £i  . 

Tobore  Rubber  Lands  £t. 

Kamunin  j  2/- 

Kinta  Kellasa/-  

Kuala  Kubu  2/-  

Labua/- 

Langen  Java  £1 

Linggia/- * 

London  Asiatic  a/- 

Malacca  £t 

Maiayalam  £t 

Merlimau  a/-   

Padang  Jawa  2/- 

Pataling  2/- 

Abbontiakoon  (10/-) , 

Bechuanaland  Exp 

Brakpan  

Broken  Hill  Prop.  (8/-)   . 

Cam  &  Motor 

Central  Mining  (;^i2)  ... 

Chartered    

City  Deep      

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (10/-) 

De  Beers  dfd.  (£2  ion.)  . 

East  Rand   

Geduld 

Gov.  Areas  Men?     


33/9 

2/ 

6j/6 
3/ii 

6,  io» 

14/ 

48,6 

4/7i 

4/5 

■■71 

5/lJ 

73.6 

4/7{!' 

3/4 

42/9 

9/4i 

3/44 

6/1 J 

2/loJ 

25/9 
27,6 
35/ 
59/3 
28/6X 
31/6 
33/7J 
4/ 
4/1 

s/7i 

10/ji 
45/ 
17/ 
8.6 
51 
39/6 
53 
3/9X 
42/ 

4/3 
7/3 

5A 
6J/9 
11/9 

6i 
15/6 

3A 

32/3 

'fi 
'3 

b^3 


H 


37/ 
1/9 

/fl 
2/ 
63/3 
3/>J 
6.7J 
14/ 
48/ 
4/7* 

4/3J 
17/ 

5/ 
74/ 
4/3 
3/4 
43/ 
9/4J 
3/2 
5/9 
2/loi 
25/9 
=7/6 
35/ 
58,6 
28/3 
3'/ 
33/3 
3/9 
4/< 
2/74 
9/IoJ 
42/ 
266 
8/3 
51 
38  9 
5/3 
3/9 
42/ 

4/-J 

7/3  I 
ii»4 
3ftx 

Il'6 

H 

'5/ii 

3S 
36;9 
ie/6x 

■Hi 

'3 

6/ 

2A>X 

3}x 


North  Caucasian  . 
Roumanian  Cons., 

Shell 

Spies  (10/.) 

Ural  Caspian 


Perak  2/-   

Port  Dickson  2/-   

Rub.  Estates  johore  £i. 
Rub.  Estates  Krian  2/-. .. 

Rubber  Trust  £l 

Sampang  (Java)  2/- 

Sapumalkande  £1     

Seaport  £1 

Selangor 

Sengat  2/- 

Seremban  jf  I 

Shetford  ^t 

Sialaug  £1    

Singiipore  Para  2/-    

Singapore  Unittd  2/-    ... 

Soember  Ajoe  2/- 

Stagbrook  £1 

Straits  Bertain  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  £l  

Sungei  Kapar  2/-   

Sungei  Kruit  £1 

Taiping  2/-  

Tali  Ayer  £1  

Tandjong  £1    

Tandjong  Maiim  £1 

Tebrau  £1  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdang  2/- 

United  Sumatra  2/-  

ValdOr  2;- 

Vallainbrosa  2I- 

Way  Halim  1/8  pd 


Gt.  Boulder  (2/.I    

Kyshtim    

Mashonaland  Agency 
Meyer  &  Charlton    .. 

Modder  "B" 

Do.    Deep 

Mysore 

R.nd  Mines  (5/-)   .... 

Rio  Tinto(£5)   

Russo-.\si  itic 

Spring  Mines 

Tanganyika 

Tanaiyk    

Van  Ryn  Deep  


99i 

''1 
97i 

98 

94 

92i 

94 

79J 

78J1 

93 

93 

53 

f- 

48, 

92 
235 
94 
22I 

77 
■5j 

58 

'4; 

91 

aE: 

56 

20 

26 


38 
19 

18] 

74i 
8 

.54 
294 


33. 


26 

38,6 

3A 
42/6 

40/ 

44/ 

34/S 
47/6 
66/6 

32/6X 
20/ 

3i 

3 
20/ 

17/3 

344} 

■25 

80J 


.0/6 

6/3 

i 

7/74 

4/ii 

42/ 

4/ 

29/ 

2/74 

25/6 

26/3 

34/ 

3/6 

42/ 

37/6 

68/ 

4/ 

3/3 

2/9 

33/6 

6/;i 

874 

37/ 

■»/ 

49/ 

4/i4» 

35/6 

87/6 

3./6 

63/ 

43/9 

2/6 

■  ■/ 

8/6 

4/ 

22/6 


■3/9 
t 

6/to< 
5» 

^1. 


3H 


994 

1* 

ll 
94 

»24 

794 

781 

98 

93 

58. 


88JX 
22411 
95» 
21AX 

744" 

■54 

55" 

I3»x 
9341 

27JX 

58 


37/« 
3A 
42/ 

40/6 
43/6 

35/ 
48/ 
67/ 

2i 

7H 
336 
20/ 

3fS 

2M 

.9/6 

■■1 

3424 

'23 

804 


9/9 

in 

6/ 


7/6 

4/ 
42/ 
4/ 
28/ 

2/74 
26/6 
26/6 
33  9 
3/44 
42/ 
37/6 
64/6 
4/ 

3/'4 
2/9 
33/6 
6/74 
8/6 
37/ 
.1/ 
49/, 
4/1 1 
34/ 
85/ 
31/6 
63/ 
42/6 
2/6 

;o/.oJ 

e/6 

3/>o4 
22/3 


amount  of  support  all  things  considered,  but  the  big 
groups,  like  Shipping,  Iron  and  Steel  and  Breweries, 
have  fallen  into  comparative  neglect.  Some  of  them 
went  ahead  too  fast,  and  they  are  now  paying  the  inevi- 
table penalty. 

The  eagerly  awaited  Courtauld  bonus  scheme  has  at 
last  made  its  appearance,  and  it  certainly  seems  to  be 
on  as  generous  a  scafe  as  the  most  .sanguine  antici- 
pated. By  comparison  the  handsome  final  dividend  of 
17J  per  cent.,  making  30  per  cent,  for  the  year,  the 
same  as  paid  for  1916,  sinks  into  insignificance.  It  is 
proposed  to  value  the  company's  holding  in  the  Viscose 
Co.  at  ;^6,444,48o,  and  to  capitalise  sufficient  of  the 
reserves  to  allow  the  issue  of  two  6  j)er  cent,  prefer- 
ence shares  of  £1  each,  and  two  additional  ordinary 
shares  of  -^i  each  in  respect  of  each  of  the  existing 
^7i  shares.  The  new  capitalisation  will  therefore  be 
;^io,ooo,oc)o,  and  the  proposals  now  await  the  sanction 
of  the  Treasury.  No  wonder  the  old  shares  were  a 
lively  market  yesterday  (Friday)  between  8  and  8J, 
whereas  on  the  previous  day  they  were  dealt  in  round 
7J,  and  before  the  war  they  were  2}.  It  is  the  biggest 
"  melon  "  that  has  been  cut  up  for  a  long  time. 


Probably  owing  to  the  intensive  campaign  for  National  War 
Bond  subscriptions  and  the  continued  uncertainty  of  the  situa- 
tion on  the  Kussian  front,  markets  have  been  in  a  depressed 
condition  practically  all  the  week.  Gilt-edged  stocks  remained 
fairly  steady,  but  the  amount  of  business  was  almost  liegligiible 
and  the  movements  have  been  trifling.  Colonial  stocks  also 
were  "neglected  for  the  most  part,  but  the  unexpectedly  favour- 
able result  of  the  New  South  Wales  Loan,  of  which  the  under- 
writers had  to  take  only  24  per  cent.,  gave  a  slight  fillip  to  this 
market.  Foreign  bonds  have  been  almost  entirely  neglected, 
e.\cept  that  Russians  have  again  given  way  several  points. 
Greeks  and  Portuguese  at  one  time  showed  a  certain  amount  of 
strength,  but  practically  nothing  happened  in  the  rest  of  the 
list. 

Home  Railways  have  been  one  of  the  weakest  sections  in  the 
"  House,"  and  almost  daily  there  has  been  a  fractional  decline 
in  most  of  the  leading  stocks.  The  dividends  are  now  being 
deducted,  and  it  looks  a  long  time  till  the  next  distribution, 
especially  in  the  case  of  those  deferred  issues  which  only  re- 
ceive a  dividend  once  in  12  months.  Very  little  transpired  in 
the  American  market,  but  Chesapeakes  at  one  time  gained  a 
couple  of  points.  On  the  other  hand,  International  Mercantile 
Marine  were  conspicuously  weak,  but  closed  above  the  worst. 
Canadian  Pacifies  moved  within  narrow  limits  and  left  off 
almost  unchanged,  while  Grand  Trunks  did  not  benefit  to  any 
extent  "by  the  excellent  traffic,  and  prices  generally  were  flat. 
Argentines  were  weak  owing  to  the  threat  of  further  labour 
troubles,  and  although  the  accumulation  of  goods  during  the 
previous  strikes  were  exceptionally  brilliant,  the  tone  of  the 
market  was  decidedly  uneasy.  Mexican  Rails  also  gave  way  a 
point  or  two,  and  other  stocks  in  this  group  were  mostly  dull. 

Hank  shares  have  shown  a  dropping  tendency  after  their 
recent  advance,  and  Capital  and  Counties,  Lloyds,  National 
Provincial,  Parr's,  and  London  County  and  Westminster  have 
speciall)'  lost  ground.  Brewery  shares  have  also  been  on  the 
down  grade,  with  Allsopps,  City  of  London,  and  Watney, 
Combes  conspicuously  weak,  although  the  feeling  was  a  little 
more  cheerful  towards  the  close.  Egyptian  securities  were 
firm,  but  dealings  were  on  a  small  scale,  and  Electric  Lighting 
shares  were  very  flat.  Among  Land  shares,  Pahangs  showed 
exceptional  strength,  while  Nigers  were  easier,  and  the  rest  of 
the  list  gives  us  nothing  to  mention.  Iron  and  Steel  shares 
generally  have  been  flat,  but  Swan.  Hunters  were  good  on  the 
dividend.  Bengal  Iron  and  Kynochs  both  gave  way.  Ship- 
ping shares  have  relapsed  into  almost  complete  neglect,  and 
among  Miscellaneous  Industrials.  Coats,  Cements,  Brunner 
Monds,  and  a  few  others  were  decidedly  depressed,  but  Sewing 
Cotton  gained  a  fraction,  and  Henley's  Telegraph  shares  im- 
proved on  the  bonus  scheme. 

Oil  shares  have  moved  very  irregularly,  but  Angk>-Egyptians, 
Trinidad  Leaseholders,  and  "Shells"  have  all  been  well  sup- 
ported. On  the  other  hand.  Burmahs  have  been  particul.irly 
flat,  and  Mexican  Eagles,  Venezuelans,  and  North  Caucasians 
have  all  given  way  a  fraction.  Rubber  shares,  although  still 
very  much  less  active  than  was  the  case  not  so  long  ago.  have 
benefited  from  the  recovery  in  the  price  of  the  commodity,  and 
the  gradual  decline  in  share  values,  which  has  been  in  progress 
for  some  considerable  time,  has  attracted  a  fresh  lot  of  buyers. 
Business  is  not  by  any  means  active,  but  as  long  as  the  market 
holds  its  position,  it  is  as  much  as  anyone  can  rea.sonably  expect 
in  these  times. 


The  Bulgarian  Minister  of  Finance,  when  asking  the  Sobranye 
for  a  credit  of  ;/^4o,ooo,ooo,  remarked  that  "  he  hoped  soon 
to  be  in  a  position  to  declare  that  this  heavy  loan  would  net 
be  borne  by  the  Bulgarians."  Who  will  carry  it  then?  Tho 
Rumanians,  Serbians,  or  the  Turks?  Neither  Austria  nor  Ger- 
many can,  and  would  not  if  they  could.  And  where  will  Bul- 
garia  get  cash  meantime? 


March  2,  1918. 


XTbe  Jnpeetors'  IRevtew. 


I 


229 


LONDON    PRODUCE   MARKETS, 


There  was  a  moderate  amount  of  business  in  force  during  the 
week  in  most  directions,  and  prices  held  together  very  well. 

Sugar  market  continued  without  alteration. 

Coffee. — With  a  good  demand  for  all  varieties,  recent  prices 
were  well  maintained,  and  meantime  all  the  mild  home-trade  sorts 
are  only  very  sparingly  offered  from  second  hands.  At  public  sale, 
East  India  fine  bold  Mysore  sold,  131s. ;  Coorg,  120s.  to  125s.  6d.  ; 
bold  Nairobi,  good  bold,  ii6s. ;  and  Santos,  on  quay  terms,  supe- 
rior to  fine  fancy  palish,  73s.  to  88s.  For  future  delivery,  a  dull 
and  inactive  state  of  affairs  pervaded  the  market. 

Cocoa. — No  auctions  held  this  week,  and  by  private  treaty  only 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK  ENDING    MARCH  i.  1918 


I..ast 
Week. 


Week. 


•agar— per  owt., 
duty  14/,  98% 
polarisation 

Tate's  Cubes 

Crushed..     .. 

Granulated  . . 

Lyle's  granulated 

Foreign  granu- 
lated, tirst  marks 
f.o.b.,  spot 

GermanCubef.o.b. 

French  Cube 

prompt 

Crystallised,  West 
India 

Beet,    88%    f.o.b 


I 


Tea— per  lb.,  duty 

I/-  lb. 
Indian  Pekoe      .. 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe    Soiiobong 
Ceylon  Pekoe 
Broken    ,, 
Orange     ,, 
Broken    ,, 
Pekoe  Souobong 

Cocoa  —  pec  owt, 

dutv  6J.  per  lb. 
Trinidad— pet  Qwt 
Grenada 

West  Africa..  .. 
Ceylon  Plaotatlon 
Gaayaqiill  Ariba.. 
Ooffee- per    cwt. 

duty  4a/.  per  cwt. 
Bast  India    ..     .. 

Jamaica 

Costa  Rica  ..  ., 
Provltioni^ 

Butter,  per  owt. 
Amiraltanbnest 
Argentine     . .     . . 
Irish  Creameries 
Dutch  ditto ..     ,. 
Russian  finest    ,, 
Paris  baskets 
Danish  finest 
Brittany     rolls  — 

doz.  lb 


i   8.    d, 


a  13  9 
2  13  9 
2  6  g 
269 


nom. 
nom. 


269 
nom. 

'.d.  8.  d 

nom. 
nom, 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 

d.  s.  d 

87  0-  99  0 
S5  o-  98  o 
65  6-  70  0 
77  o-  94  « 
1 10/- 1 12/ 


105-0  125-0 
77-0  151-0 
110-0  J  34 -6 


-per  owt. 


BacoD- 

Icish 
Continental ..  . 
Canadian  . ,  . 
American  ..  , 
Hams — per  owt, 

Irish       

Canadian      ..    . 
Ameriaan     ,.     . 


-per  owt. 


OheoBO- 
Dulcb 
Canadian  ..  ,, 
Eigiish  Cheddar 
Wilis  loaf  ..  ,. 
Naw  Zealand 

Rice— per  cwt. 

Japan , 

Rangoon  2  stars  . . 

K<i«— per  120. 

English 

Irish      

Danish 


Bpelter— 

G.O.B.  as  to  pes 
tion 


Flour— per  sack. 

Country  Straight 
Runs  ex  Mill.. 


252/ 

252/ 
nom. 
nom. 
nom. 
nom 
nom 

nom. 


172/ 

172/ 
171/-172/ 
171/-1B0/ 

203/ 
162/- 165/ 
125/-165/ 

129/6-160/- 
nom. 
142/ 
nom. 
nom. 

?.    d. 
nom. 
26    3 


43  0-44  o 
40  0-42  0 
40  0-44  0 


54  0  50  0 
44/3 


jC    s.  d 


2  13    9 

2  13    9 
269 

269 


nom. 

nom. 


269 
nom. 


nom. 
nam, 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
n'  m. 
nom. 


87  o  -99  0 
ti5  c  -c,o  0 
62  o  -70  o 
77  o  -94  0 


no  0  131  0 
79  ^  '51  2 
no  o  ij4  6 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


172/ 

172/ 

171/-172/ 

203/ 

:62/-i65/ 
125/-165/ 

129/6-160/- 
nom. 
142/ 
nom, 
nom. 

s,    d. 
00m. 
26    3 


Wool— per  lb, 
A  u  s  t  r  a  li  a  n 

Scoured  Merino 
Scoured  Cr'sabr'd 
Greasy  Merino 
Greasy  Crossbred 
New    Zealanc^ 

(sconred)  Merino 
Greasy  Crossbred 
Cape  snow  white 

Indlarubberp.lb 

Plantation,      Spot 
Crepe  . .     , , 


Coal— per  ton 

Durham,  best  .. 

'Seconds 

lEast  Hartlepool.. 

Seconds       ..  ,. 

JSteams,  best  .. 

jSeconda       ..  .. 

I 

Lead— perlon. 
English  Pig. . 
jt-oreign  solt,  net 

QulckBUver~pet 

bottle  firsthand 


Tin—per  ton  , 

;  English  Ingots  . 
I  Do.  bars 
jstandard  cash  .. 
Tin  Plates, per  box 
Copper— per  ton. 
English,  Tough, 
per  ton  ..  .. 
Best  Selected    . . 

Sheets 

Standard      . .     . . 
Jute— per  ton. 
(Native   firsts    for 
^shipment 
\0\\m— 

iLinseed.per  ton.. 
Rape,  refined  . . .  v 

,,       crude   

Coit'n  Seed.orudt 
Ditto,  refined  ,. 
Petroleum  Oil, pel 

Stbs. 
Water  White  .. 
Oil  Seeds, Linseed 
Calcutta- per  ton 
Spot 
Rape     


\Q  0-42  6 

37  c-33  o 
39  0-41  0 


44/3 


Last 
Week. 


;f    5.  d 

rom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom. 


0    2    3i 


Iron— per  ton 

Cleveland  Cash  .. 
Tobacco  —  duty, 

unmanufactured 

7/4  to  8/0  per  lb. 
iVlarylaud  &  Ohio. 

per  lb.  bend    ,. 
VirgiQialeat. 
Kentucky  leaf    .. 

Latakia 

iiavaua 

Manila 

Cigars,  duty   10/6 

per  lb. 

Timber— Wood. 

Pitch  Pine  ..  . 
Indian  Teak 

Turpentine- 
American  Spot  . 

Copra— per  ton 
Malabar  . .  . 
Ceyi< 


L.ey.on 

F.M.S.  Singapore 
P.M.    Straits 


nom. 

nom. 

nom, 

nom. 
32  6 
29  6 

C    s.  d. 
nom. 


;C3T9 
£320 
£314 


nom 
£■119-^:123 


£5S'£63 

£71 

£66 

£60 
£(>7-£95 

i/7i 
i/8i 


29  13 
£29-10^30 


nom. 
08-21 
0  7  -o  11 
20-5    0 
16-66 

nom. 

2/  upds. 


This 
Week. 


joo/ —  400, 
380/—  700/ 


124/ 
46    o 

46  0 
45  15 
45  10 


£  s.  d. 

nom. 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


0    2     5i 


nom. 
nom. 
nom. 
nom. 
32  6 
29    6 

i     s.  d. 

nom. 

£29J-£284 
nom. 


£■319 
nom. 


nom. 
£"9-£'n 

£I10-I10j 


^58-i£63 

Cy 

£66 

£60 

£(>7-£9i 


1/7} 
I/8j 


29  15    0 
£29-10^30 


nom. 
0  8—2     I 

0  7 — 0  II 
2  0—5    0 

1  6-6    6 
nom. 

2/  upds. 


300/— 403/ 

383/— 700/ 

124/ 


46     o 

46  o 
45  15 
45  10 


I 


a  limited  trade  resulted  at  recent  prices.  Cocoa  butter  in  fair 
demand  at  2S.  per  lb. 

Spice.— Pepper  market  ruled  quiet,  but  prices  fully  steady.  On 
the  spot  Singapore  black,  basis  fair,  quoted  is.  ijd.;  Tellicherry, 
IS.  3jd. ;  and  Muntok,  is.  8|d.  Zanzibar  cloves  steady,  at 
IS.  lod.,  buyers.  Tapioca  firm.  Fair  flake,  spot,  sellers,  7jd. 
Penang  seed  pearl  quoted  72s.,  and  medium,  70s.  Fair  small 
[,  sago,  spot,  buyers,  70;.  per  cwt. 

KiCE. — Beans  and  peas  continue  in  good  support,  while  the 
latter  is  very  reservedly  offered. 

Shellac  — Market  unaltered,  and  in  the  absence  of  business 
quotations  are  largely  nominal. 

Rubber.— Market  slightly  irregular,    but  prices  firmer  on  the 


week,  while  a  fair  business  transpired.  Plantation  crepe,  spot, 
sold  2S.  3jd.,  2S.  4jd.,  2S.  4d.,  and  2s.  sd.  ;  April-Junj,  2S.  aM.. 
2s.  5jd.,  2S.  5d.,  and  2s.  6d. ;  July-December,  2s  6Jd  ,  2 ;.  6d.,  and 
2S.  6Jd.  Smoked  ribbed  sheet,  spot,  2s.  2|d.,2s.  3id  2s  3d  end 
2s.  4id.  Fine  hard  Para,  spat,  done,  2s.  8d.  ;  and  soft  fine,  2s'  4d 
per  lb.  •      •  t 

Corn  (Mark  Lane).— Steadiness  characterised  movements  during 
the  week,  offerings  being  readily  absorbed  at  full  rates.  English 
wheat  ranges  to  75s.  6d.  per  504  lbs.  Of  imported  descriptions. 
No.  I  Northern  Manitoba,  sold,  8is.  6d.  ;  No.  2,  hard  winter, 
quoted,  80s.  to  80s.  gd.  ;  red  winter,  78s. ;  blue  stem,  8is  6d  ' 
Australian,  83s.  6d.  to  84s.  3d. ;  and  La  Plata,  8is.  gd.  to  82s.,  all 
landed,  per  4g6  lbs.  Flour— English,  G.R.,  44s.  3d.  per  sack,  ex 
mill ;  Canadian  export,  51s.  gd.  ;  white  maize  meal,  84s.  6d. ;  and 
yellow,  83s.  6d.,  ex  warehouse.  Barley— English,  62s.  gd. ;  Cali- 
fornian,  g3s.,  landed,  per  448  lbs.  Oats— English,  46i.  3d.,  per 
336  lbs.  ;  No.  2  Canada  Western,  63s. ;  American  white  clipped, 
sold,  6 IS.  6d. ;  and  American  (controlled),  60s.  6d,  per  320  lbs.,, 
quay  terms.     Maize  remains  nominal. 

Cotton  (from  our  Manchester  correspondent) —Although  there 
has  not  been  any  general  improvement  in  the  market  during  the 
past  week,  buyers  have  shown  increased  interest  in  prices,  and 
here  and  there  rather  more  business  has  been  done.  The  harden- 
ing tendency  in  raw  cotton  rates  has  to  some  extent  stimulated 
demand  in  yarn  and  cloth.  The  depressing  feature  in  the  situation 
at  the  moment  is  the  worse  outlook  for  shipping,  and  in  well- 
informed  quarters  it  is  believed  that  a  further  rastriction  of  output 
is  inevi  able  during  the  next  few  weeks.  Distant  future  positions 
in  Liverpool  have  attracted  rather  increased  attention.  Only  a 
miscellaneous  business  has  been  done  in  piece  goods  for  India 
chiefly  in  light  fabrics,  such  as  dhooties  and  jaconets.  The 
isolated  bids  mentioned  for  China  have  mostly  been  altogether  too 
low,  but  some  shippers  seem  to  be  feeling  their  way  towards  more 
activity.  A  little  more  demand  has  been  about  in  a  variety  of 
goods  for  Egypt  and  South  America.  The  home  trade  continues 
to  give  healthy  support,  and  the  distributing  houses  are  being 
pressed  for  deliveries.  Makers  of  strong  and  heavy  materials  for 
war  purposes  remain  exceedingly  busy,  but  fresh  contracts  of 
weight  have  not  been  prominent  this  week.  An  increased  inquiry 
has  come  through  in  home  American  yarns,  and  the  turnover  has 
been  larger  than  for  some  time  back.  Stocks  have  been  cleared, 
and  many  producers  have  strengthened  their  position.  Rather 
irregular  operations  have  occurred  in  shipping  yarns.  The  under- 
current of  demand  in  Egyptian  spinnings  remains  encouraging, 
and  owiug  to  the  strong  position  of  producers  full  rates  have  had 
to  be  paid  fot  anything  wanted. 


Answers  to  Coppespondents. 

C.  D.  F. — The  market  looks  like  continuing  to  droop,  and 
the  immediate  outlook  i^  a  little  uncertain.  Better  wait  a  little 
longer. 

J.  R.  S. — They  are  a  pure  gamble,  and  we  do  n-ot  care  to 
recommend  a  purchase. 

Chorus.- Unless  you  have  something  better  in  view^  keep  it. 

P.  F.  T. — We  are  not  inclined  to  favour  a  purchase  for  in- 
vestment.    The  financial  position  is  full  of  problems. 

J.  M.  M. — (i)  The  output  is  increasing,  and  prospects  are 
quite  good,  but  the  premium  is  high.  The  shares  will  probably 
improve.  (2)  Not  as  an  investment ;  dividends  are  not  yet 
being  paid.  The  company  has  valuable  interests,  but  it  is  a 
waiting  game. 

R.  D.   G.— Yes. 

G.  A.  H. — Why  not  sell  a  few  of  each?  Both  are  powerful 
concerns  and  wealthy,  but  they  are  always  liable  to  sharp 
fluctuations. 

X.  Y. — (i)  These  look  too  dear  to  purchase  now,  although 
dividends  are  likely  to  be  good  for  the  present.  (2)  Only  a 
substantial  increase  in  the  dividend  justifies  the  present  price. 
The  company  is  no  doubt  doing  well,  but  the  shares  look  dear 
as  an  investment.  (3)  A  progressive  company,  with  room  for 
expansion.  There  is  no  hurry  to  buy,  as  market  seems  likely 
to  sag. 

Swineherd. — It  seems  a  pity  to  sell  now.  There  is  a  chance 
that  the  company  may  pull  round.  It  has  a  fair-sized  estate, 
which  is  likely  to  become  valuable  when  conditions  are  more 
normal. 


Jewish  demonstrations  in  Galician  towns,  according  to 
Jewish  reports,  have  led  to  the  ill-treatment  of  Jews  at  Cracow 
and  the  demolition  of  their  shops.  At  Lemberg  anti-Jewish 
pamphlets  have  been  sold  for  id.  for  the  benefit  of  the  funds 
for  the  expulsion  of  Jews  from  Poland.  Is  that  the  work  of 
German  provocateurs,  or  of  misguided  Polish  fanatics  them- 
selves ? 

THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

Head  Office— 71  Old  Bioad  Street.  E.C. 

SubscrilMd  Capital         «1, 276. 747     10    O 

Paid  up  Capital 669.685      O     O 

Reserve  Fund  and  Undivided  PtoBts         ..  375,680  11     8 

Reserve  Liabilit)' of  Proprietors       ..         ..  606,i362    10    O 

REMITTANCES  made  by  CABLE. 
DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 

Brandies  and  Agents. 
BILLS  on  Australasia  NEGOTIATED  or  sent  for  collection. 
D2FOSITS  RECEIVED  for  periods  and  at  rates  wbicli  may  be  aseertalnaa 

on  application,  and   Banking    Business   of    every  description   conduMea 

with  .\iisttalia. 


230 


^be  investors'  IReview. 


March  2,  191 8. 


American  Business  Notes. 

Details  of  United  Slates  lorcign  trade  lor  1917  are 
interesting  from  several  poirUs  of  view,  tfie  totals  are 
so  large.  In  merchandise  exports  alone  the  increase 
was  ;£,  149,000,000,  and  of  that  more  than  ;^5o, 000,000 
was  due  to  shipments  to  South  America,  the  West 
Indies,  Mexico,  Asia,  and  Oceania,  and  it  was  a 
growth  upon  a  growth.  With  the  whole  of  South 
Amerita  the  export  trade  of  the  Republic  last  year  was 
not  far  from  four  times  that  of  1914,  the  gains  being 
principally  in  cotton  cloths,  tin  plates,  automobiles, 
coal,  and  manufactures  of  iron  and  steel. 

To  the  United  Kingdom  the  value  of  goods  exported 
was  nearly  _;£,'400,ooo,ooo,  and  this  compares  with 
;£5'378, 000,000  in  igiC),  which  in  turn  was  about  60  per 
cent,  above  the  figures  for  1915.  To  France  the  ex- 
ports rose  in  value  from  ;^i72,ooo,ooo  in  1916  to 
;^i86,ooo,ooo  last  year,  and  to  Italy  from  /^6i, 000,000 
to  ;£['8o,ooo,ooo.  Canada  also  took  ;^,"  155,000,000 
worth  of  American  goods  compared  with  little  more 
than  ;^i2i,ooo,ooo  in  1916.  To  Russia  alone  was 
there  any  serious  decrease  in  exports.  They  fell  nearly 
;/^6,ooo,oc)0  to  about  ;^88,ooo,ooo  last  year  owing  to 
the  cutting  off  of  supplies  there  in  the  final  quarter. 
In  other  directions  the  expansion  was  remarkable 
enough,  and  not  least  in  the  exports  to  Mexico,  which 
sprang  from  ;^io,6c)0,ooo  to  ;^22,ooo,ooo.  Chile, 
Argentina,  Brazil,  the  British  li^ast  Indies,  and  Japan 
also  took  considerably  more  of  American  commodities, 
even  allowing  for  the  formidable  further  increase  in 
prices,  and  the  facts  would  seem  to  indicate  that  for 
the  present  the  United  States  is  occupying  a  good  deal 
of  the  field  which  was  formerly  filled  by  Europe,  especi- 
ally by  Germany. 

Naturally  the  import  trade  also  went  up  in  a  remark- 
able manner,  and  only  in  wool  from  Australia  is  a  large 
diminution    in   shipments    to    be     noted.        But     from 
Canada  came  increased  quantities  of  flax   seed,   wood 
pulp,    and   wool,    from    Mexico    larger    quantities    of 
copper,  lead,  and  mineral  oils,  from  Brazil  much  more 
coffee,  and  from  Argentina,  Chile,  Peru,  and  Uruguay 
increased  shipments  of  copper,  hides,  and  wool.      Also 
from  China  raw  silk,  goatskins,  hides,  and  wool  arrived 
in  appreciably  larger  quantities,  and  from  Japan,  which 
took   nearly  ;^  12,000,000    more    of    American   goods, 
there  were  also  increases  in  imports.      From  India  came 
much  greater  quantities  of  indiarubber,  manila  hemp, 
fruits,    and    coconut    oil.     Altogether   out    and    in    the 
trade  of  the  Republic  in   merchandise   alone   was  last 
year    valued    at    _^i, 836,000,000,   and    of    that    total 
;^590, 500,000  was  the  value  of  the  imports,   so  that 
immense  though  the  exports  were,  their  excess  values 
over    those    of    the    imports    was    only    ;^36,5oo,ooo 
greater  than  for  the  year  before.     This  excess,  how- 
ever, has  now  risen    to    the    enormous    aggregate  of 
;^654,76o,ooo.        That   was   the  balance    due    to    the 
United  States  on  its  merchandise  trade  of  1917,  and  in 
1914      that       "favourable"       balance       was      barely 
,^65,000,000.      But    then    it    had    heavy    interest   pay- 
ments to  make  abroad,  whereas  now  it  is  a  creditor 
country. 

With  all  this  excess,  however,  the  movements  of 
gold  were  much  less  favourable  to  the  United  States 
than  in  the  previous  year.  Altogether  the  imports  of 
the  metal  last  year  reached  ;^  107,600,000.  This  com- 
pares with  ,^'137,200,000  in  1916  and  with  ;^90,400,ooo 
in  1915.  Exports  of  gold,  in  fact,  were  much  larger  at 
;^74,40o,ooo,  or  fully  one  and  a-half  times  as  much  as 
the  export  of  191 4.  The  nett  import  balance  in  gold 
for  the  vear  was  therefore  barely  ^33,200,000,  but  the 
nett  export  in  1915  was  almost  as  much,  and  in  1915 
the  nett  import  was  upwards  of  ;^io6,ooo,ooo.  The 
change  has  immense  significance.  But  thanks  to  our 
borrowings  we  provided  only  ;^ioo, 000,000  of  the 
total  gold  imported  by  the  States  last  year,  and  France 
almost  nothing  at  all. 

Silver,  now  a  much  more  important  metal  in  inter- 
national business  than  before  the  war,  was  heavily  ex- 
ported, and  exceeded  imports  by  ;^6,i40,ooo,  against 
;^7,666,ooo  in  the  previous  year.  The  principal  source 
of  the  increased  supply  of  this  metal  was  Mexico. 


Insurance    News. 

As  the  result  of  an  excellent  year's  trading  the  direc- 
tors of  the  West  of  Scotland  Insurance  Ofhce  were 
enabled  to  raise  the  dividend  for  1917  to  20  per  cent., 
as  contrasted  with  17^  per  cent,  for  1916,  and  to  carry 
forward  ;^4,702  more  at  ;;^7,8o3.  The  toUl  premium 
income  was  ;^"io7,834 — an  increase  of  ;^28,342  ;  the 
combined  loss  ratio  was  50.6  per  cent.,  while  the  ex- 
pense ratio  was  reduced  from  33.5  per  cent,  to  29.08 
per  cent.  By  an  addition  of  ^"2,000  the  general  re- 
serve was  raised  to  ,^30,000. 

Fire  insurance  underwriters  doing  business  in 
Sweden  had  an  unsatisfactory  experience  in  the  closing 
weeks  of  1917,  owing  to  three  disa.strous  fires  which 
the  wood  pulp  and  paper-making  trade  experienced. 
One  fire  alone  is  reported  to  have  resulted  in  a  loss  of 
;^500,ooo,  and  in  the  case  of  a  second  outbreak  the 
damages  are  estimated  at  ;^25o,ooo.  Incendiarism  is 
strongly  suspected  as  the  cause  of  two  of  the  fires. 

A  reduction  in  the  capital  of  the  British  Widows' 
Assurance  Co.  from  /;ioo,ooo  to  ,^24,000  has  been 
sanctioned  bv  the  Court.  According  to  the  Post 
Magazine,  the  application  to  the  High  Court  for  this 
purpose  is  understood  to  be  only  part  of  an  arrange- 
ment with  the  holders  of  the  shares  who  provided  the 
loans  which  appeared  in  the  balance-sheet  as  at  Decem- 
ber 31,  1916,  as  amounting  to  ^^81,289.  The  final  ad- 
justment, together  with  other  arrangements  pending, 
will  wipe  out  these  loans;  the  item  of  goodwill, 
/:6o,ooo,  will  disappear  from  the  assets ;  and  the  estab- 
irsh.ment  account  will  be  reduced  to  about  ;^25,ooo,  a 
sum  much  more  in  consonance  with  the  actual  facts  of 
the  building  cost  of  the  business  written  since  1905. 

The  fact  must  once  more  be  emphasised  that  the 
Germans  are  deliberately  laying  themselves  out  to 
aggrandise  their  insurance  enterprise  as  soon  as  peace 
is  restored.  Fire,  marine,  and  transport  companies 
are  all  linking  up  with  a  view  to  the  national  retention 
of  business  of  which  formerly  a  great  part  had  to  find  a 
market  abroad.  The  German  companies  appear  to  be 
in  agreement  that  '•-o  far  as  fire  insurance  is  concerned 
they  must  henceforth  pay  more  attention  to  foreign 
countries,  and  that  their  efforts  should  be  energetically 
advanced  by  the  Government.  In  this  connection  pre- 
sumably it  is  South  American  countries  on  which  the 
German  has  his  eye. 

The  valuation  of  the  Scottish  Temperance  Life 
Assurance  Co.,  made  as  at  December  31,  has  been 
completed  on  the  same  strong  standard  as  on  the  pre- 
vious occasion.  Under  normal  conditions  the  surplus 
would  have  been  over  ;£'3oo,ooo,  and  more  than  suffi- 
cient to  maintain  or  even  increase  the  bonus  of  191 2. 
War  conditions,  however,  have  interfered  with  every 
usual  source  of  profit.  Mortality  claims  were  increased 
bv  ^^,"72,840;  and  depreciation  in  investments  to  the 
extent  of  ,^130,000  has  to  be  provided.  After  taking 
these  points  into  consideration,  there  was  still  a  profit 
of  ;^io7,573,  which  it  is  proposed  to  carry  forward, 
subject  onlv  to  pavment  of  an  interim  bonus  on  exist- 
ing immediate  bonus  policies  which  may  mature  be- 
fore the  next  valuation  date.  This  bonus  is  to  be  at 
the  rate  of  los.  per  cent,  for  each  annual  premium  paid 
since  1912  this  sum  being  in  mo.st  cases  sufficient  to 
cover  the  difference  between  with-profit  premiums  paid 
and  without-profit  premiums.  Dividend  at  the  rate  of 
10  per  cent. ;  for  the  previous  three  years  16  per  cent, 
was  paid.  __^______— — . 

Munitions  to  the  value  of  ;f22o,ooo,ooo  have  been  ordered 
from  Canada  through  the  Imperial  Ministry  of  M.unitions,  of 
which  ^175,500,000  has  already  been  delivered. 

Meatless  days  in  the  United  States  are  said  to  save  140,000,000 
lbs  of  beef  in  four  months,  during  which  time  165,000  000  lbs. 
of'  beef  and  400,000,000  lbs.  of  pork  have  been  exported  to  the 
Allies. 

South  African  Meat  Preserving  Industry.-A  very  successful 
beginning  has  been  made  in  the  matter  of  meat  preserving  and 
meat  extract  manufacture.  Samples  of  these  commodities  pro- 
duced on  the  southern  borders  of  Xatal  were  submitted  to  the 
Trades  Commissioner  in  London,  who  forwarded  to  the  l>o^;ern- 
ment  a  most  favourable  repoft  thereon,  and  pointed  out  that, 
on  the  basis  of  the  quality  as  supplied,  both  extract  and  meat 
would  find  a  ready  market  in  the  United  Kingdom. 


March  2,  1918. 


^be  Jnvestors'  TReview* 


231 


PUBLIC     INCOME     AND    EXPENDITURE. 

The   following   are    the   receipts   into   and    issues   out     of    the 
Exchequer  between  April  1.  1917,  and  Feb  uary  23.  1918:— 


Estimate 

for  the 

Year 

1917-19x8. 

(See  note.) 


Total  Receipts 

into  the 

Exchequerfroin 

April  I,  1917,  to 

Feb.  23,  1918. 


70,750,000 

34,g50,0'x: 

29,000.000 

8,000,000 

2,600,000 


224,000,000 
200,000,000 

400,000 
33,700,000 

600,  coo 

7,500,000 

27  100  POT 


638^600^000 


balances   in    Exchequer    on 

April  I— Bank  of  Engl.\nd  , . 

Bank  of  Ireland    . 

Revenub. 

Customs  

Excise  

Estate,  &c.,  Duties 

Stamps 

"Land  Tax ) 

House  Duty    f 

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Dulies,  &c 

L.and  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    fron.    Sundry 

Loans,  &c 

M  iscellaneous 

Kevenue  

Total,  including  Balance 

Other  Receipts. 

'Repayment  of  Advances  for  Bullion   

Kepayment    of    Advances    for    Interest 
Exchequer  Bonds  under  the  Capital  Expen- 
diture (Money)  Act,  1904    

Under  Ttlegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1S97  to  1903 

^'nder  Public  Buil  ings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For  Treasury  Bills  (tor  supply)    

For    Exchequer    Bonds    under   the    Capital 
Exrenditure  (Money)  Act,  1904  

For    Exchequer    Bonds    under    the    Cunard 
Agretment  (Money)  Act,  1904  

For  4^  per  Cent.  War  Loan.  1925-1945 

For  5  per  Cent.  Exchequer  Bonds,  1919  ... 

For  5  per  Cent.  Exchequer  Bonds,  1920    

Foe  5  per  Cent.  Exchequer  Bonds,  1921  ... 

For  5  per  Cent.  Exchequer  Bonds,  1922   

For  6  per  Cent.  Exchequer  fionds,  1920    ... 

i'or  War  Expenditure  Certificates   

For  War  Savings  Certificates 

For  other  Debt  created  under  the  War  Loan 
Acts,  1914-1917 

'For  4  per  Cent.  War  Loan,  1929-1942,  and  5  per 
Cent.  War  Loan,  1929-1947    

For  National  War  Bonds    

East  Africa  Protectorate  Loan  :    Repayments 
on  account  of  Principal  and  Interest 

Cnnar  1  Loan  :  Repayment  on  a/c.  of  Principal 

Suez  Canal  Drawn  Shares 

China  Indemnity   , 

Temporary  Advances — Ways  &  Means  (incUid 

ing  Treasury  Bills  £345,000,000  in  1916-1917) 

Total 


i 
i!5.309.947 

I.225,9t2 


Total  Receipts 

into  the 

Exchequer  from 

April  I,  1916,  to 

Feb._2_4.  1917. 

I 


26,435.859 


63,589,000 
34,732,oco 
28,044,000 
6,949,oco 


181,973,000 

18S, 011,000 

58.1,000 

30,450,000 

£.30,000 

1,925.975 

47.9*^8.818 


586.857.793 


613,293.652 


169,818 

I0O,CO0 

68,000 


394,500 

2,520,402,000 


1,300,000 


82,270,400 
48,000 

47,200,000 

642,832,416 

'68,082,6:0 
*3S6, 195.000 

5.940 

130,000 

12,797 


876.103,500 


5,340,918,643 


23,111,065 
4639*' 


25.575.006 


6i,8i7.coo 
50,955  000 
28,035,000 
6,631,000 

1,940,000 

154,566.000 

119,113,000 

391,000 

29,700,000 

580,000 

5,155.989 
12,40Q,99' 


472,29^^980 


497,868,966 


3,3ro,oco 


91,370 

210,000 

160,000 

8,8:4 

8,000 

74.600 

1,766,531.000 

3,087,600 


AH 

34,262,604 
84,140,469 
62,495  527 

160,951,7:0 
29,878,500 
62,050,000 

248,052,245 

473,560,000 


5.940 

130,000 

i  0,795 

400,000 

868,703.000 


4.29>.99i  584 


Note.— E&timate  as  in  House  of  Commons  Paper  No.  75  of  1917.  »nd  Sup- 
iplementary  Grants. 
^Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account. 


Books  and  Pamphlets. 


Trans- 


The  Queslion  oj  Alsace-Lorraine.     By  Jules  Duhem. 
lated  by  Mrs.  R.  Stawell.     (Hodder  and  Stoughton.) 

Judging  by  the  resolutions  formulated  at  the  Inter-Allied 
Labour  and  Socialist  Conference,  held  last  week  in  London, 
working  men  everywhere,  and  not  least  British  working  men, 
require  education  about  Alsace-Lorraine.  The  delegates 
assembled  appear  to  be  nearer  the  right  position  than  many  of 
them  were  a  few  months  ago,  but  in  the  portion  of  their 
memorandum  dealing  with  the  question  of  Alsace-Lorraine  they 
err  grievously.  While  admitting  that  France  was  unjustly 
deprived  of  these  provinces  by  Germany,  they  go  on  to  say 
that  France  herself  has  broken  the  Treaty  of  Frankfort — she 
never  acknowledged  it — and  that  the  coming  treaty  of  peace 
must  have  the  signature  of  every  nation  in  the  world  !  and 
further,  that  before  getting  her  provinces  back,  France  must 
not  only  obtain  the  sanction  of  these  signatory  nations,  but  a 
"  popular  vote  "  of  the  people  in  Alsace  Lorraine  themselves, 
before  she  can  get  her  provinces  back. 

Now,  that  is  flat  heresy,  and  ignorant  nonsense  to  boot. 
It  is  no  international  question  whatsoever,  the  question  of 
.•\lsace-Ix)rraine,  as  everybody  will  understand  who  takes  the 
trouble  to  read  M.  Jules  Duhem's  admirable  little  monograph, 
competently  translated  by  Mrs.  R.  Stawell.  In  the  original 
French  the  essay  forms  one  of  a  series  of  valuable  political 
monographs  issued  by  Felix  Alcan  in  Paris,  and  it  was  well 
worth  translation.  M.  Duhem  does  not  go  into  the  minutia; 
of  Alsatian  history,  but  he  lucidly  sets  forth  the  salient  aspects 
of  the  long,  harrowing  story  since  the  tearing  away  of  these 
provinces  from  France  by  Prussia  after  the  war  of  1870-71.  It 
is  the  story  of  a  long  martyrdom,  during  which  the  brutal 
stupidity  of  Prussian  methods  of  administration  has  raised 
to  an  insatiable  hunger  the  passion  of  Alsace  for  France. 

Thanks  to  German  methods  of  distorting  history,  people  have 
been  led  to  believe  that  Alsace  and  Lorraine  were  German, 
because  formerly  parts  of  the  Holy  Roman  Empire  of  the  Ilabs- 
burgs,  part,  i.e.,  of  a  non-existent  German  Empire.  They  were 
never  that,  becau.se  there  never  was  a  united  Germany  in  any 
sense  before  Prussia  laid  her  steely  grip  on  Germany's  many 
principalities.  The  inhabitants  of  the  forcibly  annexed  terri- 
tories  cannot   be  considered    even   of    Teutonic    race,   and    all 


Expenditure 
and  other  issues. 


Estimate  for 

the  Year 

iqi7-i8. 

(See  note.) 


£ 
17,000,000 
194,500,000 


Total  Issues 
out  of   the  Ex- 
chequer to  meet 
payments    from 
April  1,  1QI7,  to 

Feb.  23,  1918. 


total  Issues 
out  of  the   Ex- 
chequer to  meet 
payments    from 
April  1,  1916,  to 

Feb.  24,  1917. 


9,700,000 


1,695,000 

2, 54t. 200,000 


2,767,095.000 


n    Exchequer 
Expenditure 


Expenditure. 
Permanent  Charge  of  Debt  , . 
Interest,  &c.,  on  War  Debt .. 
Payments  to  Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    

Expenditure    . . 

Other  Issues. 

For  Advances  for  Bullion  

For   Advances    for    Interest    < 

Bonds    under     the     Capital 

(Money )  Act,  1934    

Under  Telegraph  (Money)  Act,  1913 

IJnder  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supply 

For    Exchequer    Bonds    under    the    Ca;  ital 

Expenditure  (Money)  Act,  1904    

For  Exchequer  Bonds  under  the  Cunard  Agree^ 

melt  (Money)  Act,  1904 

For  War  Loan;,  Exchequer  Bonds,  &c., under 

Section  ^4  of  Finance  Act,  1917  

For  War  Expenditure  Certificates  under  War 

Loan  Act,  1916    

For  other  Debt  untfer  the  War  Loan  Acts, 

1914  to  1917 

For  Depreciation  Fund  under  the    Finance 

Act,  1917  ... ; 

Old     Sinking    Fund,     1907-8,    issued    under 

Section  9  of  the  Finance  Act,  igo8  , 
Old    Sinking    Fund,     19:0-11,    issued    under 

the  Finance  Act,  191 1,  Section  16  (i)  (b) 
Old  Sinking  Funds,  1911-12  and  191 3-14,  issued 

under     the    Anglo  -  Persian    Oil    Company 

(Acquisition  of  Capital)  Act,  1914  

East  Africa  Protectorate  Loan  Repayments- 
Issued  to  rtduce  Debt  under  ih;   Finance 

Act,  1911    

Cunard  Loan  Re.  ayts.— Issued  to  reduce  Debt 

under  the  Cunard  A  greemt.  (Moneys  Act,  1904 
Suez  Canal  Drawn  Shar-s— Issued  to  reditce 

Debt  under  the  Finance  Act,  i  , 
China     Indemnity — Issued    to    reduce    Debt 

under  the  Fiiiance  Act,  1906 
Temporary  Advances  repaid — Ways  and  Means 

(incldg.  Treasury  Bills  jf  345.ooj,ooo  in  1916-17) 

I      1918.     I      1917. 
Feb.  23.       Feb.  24 
Balances  in  Exchequer—  \        C       \       C 

Bank  of  England I3.936.277   4'.333.93i 

Bank  of  Ireland I    2,029.2511    2.201.586 

ToUl 


18,237,553 
160.532.610 

7.120.566 

1.508.098 
2.207.305.687 


2.394,7°4.5t' 


2,720,000 

169.818 
115.000 
95,000 


394,500 
f  1.932.780.000 


1.300,000 

I3i862,356 

>305.400 

80.929.570 

30.639.22.0 

io,(  00 

20.C00 

949.000 

5.C40 
130.000 
13,797 

865,849,000 


5.324.993.115 


15.965,5»8 


5.340,958.643 


T 

18,925.308 

103,916.994 

7,087,774 

1.799.839 
1.778.824.722 


'.9'0.554.637 


3.510,000 


91.370 

230.000 

20C.000 

8.00S 

8.000 

98.900 

[.614,193,000 

3,087,600 


1.085.700 
3.000.000 
9.651.957 

9t.0OQ 

53.160 

250,000 

^.940 

130,000 
10,795 

400,000 
725.793.000 


4,272,456.067 


23.535.517 


4.295.991.584 


Memo. — Treasury  Bills  outstanding  on  Feb.  23. 1918 *f  1,051,516,000 

♦  Includes  jf  197,000,  the  proceeds  of  which  were  not  carried  to  the  Exchequer 

within  the    period   of   the  account,  besides   a   part  (not  yet  ascnrtained  and 

brought  to  account)  of  the  Bills  tendered  as  subscription  to  National  War  bonds, 
t  Includes  part  payment  of  Bills  and  Certificates  tendered  as  subscriptions 

ts  National  War  Bonds. 


through  the  early  history  of  Europe  after  the  disintegration  of 
the  Roman  Empire,  they  occupied  a  position  apart,  and 
gradually,  under  the  Habsburgs  especially,  won,  considerable 
local  independence,  particularly  their  cities — at  least  two  of 
which  were  republics.  It  was  this  region  which  Louis  XIV. 
wrung  from  the  hands  of  the  House  of  Austria  in  the  17th  cen- 
tury, but  he  did  not  take  them  from  the  Empire  as  such,  but 
from  the  House  of  Habsburg-I.x>rraine,  nor  were  they  annexed 
to  France  without  sanction  and  assent.  It  was,  in  a  sense, 
private,  or  suzerain,  property  that  the  "  Holy  Roman "  Em- 
peror surrendered,  and  aiter  a  time  the  people  accepted  their 
new  master  and  became  loyal  to  France,  because  the  wise  states- 
men of  Louis  XIV.  took  care  not  to  wound  their  susceptibilities. 
Their  local  rights  and  privileges  were  maintained,  their  legal 
systems  and  courts  of  justice,  the  independence  of  the  towns 
was  as  little  as  possible  interfered  with,  and  French  culture 
pervaded  society.  So  when  the  French  Revolution  broke  out  the 
people  of  these  provinces  hailed  the  new  era  with  joy,  and 
were  fused  into  France,  as  it  were,  in  their  sympathy  with  her 
noblest  ideals  of  liberty. 

It  was  open  to  the  Prussians  to  follow  the  same  policy,  but 
they  had  neither  the  sense  nor  the  humanity  to  do  so.  On 
the  contrary,  they  flung  away  every  opportunity  that  the  mis- 
takes, the  periods  of  apathy,  the  .seeming  neglect  of  France,  as 
M.  Duhem  so  clearly  explains,  gave  to  them  to  woo  the  Alsatians 
to  their  side,  and  treated  every  exhibition  of  local  independence, 
every  slightest  hint  of  French  sympathies,  with  a  clownish 
brutality  that  drove  the  high-spirited  Alsatians,  not  into  rebel- 
lion— they  were  too  sage  for  that— but  into  an  attitude  of  grave, 
ironic  reserve  and  scorn,  which  exasperated,  but  did  nothing 
to  instruct,  their  tyrants.  Over  a  great  part  of  the  provinces 
a  patois  of  Clerman  was  the  speech  of  the  people  at  the  time 
of  the  annexation.  It  is  their  speech  still ;  yet  to-day,  in 
spite  of  all  restrictions  and  persecutions,  French  is  better 
known  and  more  used  throughout  Alsace-Lorraine  than  it  was 
47  years  ago.  All  this,  and  much  more,  will  be  found  set  forth 
in  the  pages  of  this  wise  and  opportune  book,  and  after  read- 
ing it  no  one  can  again  talk  of  a  "  plebiscite"  being  required 
to  settle  to  which  country  Alsace  and  Lorraine  should  belong. 
The  abominable  crime  which  was  perpetrated  when  these  pro- 
vinces were  wrenched  away  from  France  lies  at  the  very  root 
of  the  present  war.  It  has  kept  Europe  in  arms  for  upwards 
40   years,    living    in  an   uneasy    nightmare    of   overshadowini? 


232 


XLbc  Jnvestors'  IRevlew. 


March  2,  1918. 


disaster;  and  unless  the  just  solution  is  reached  now,  it  will 
remain  a  source  of  danger  to  the  peace  of  Europe  for  all  time 
to  come.  We  hope,  therefore,  that  this  short  essay  will  have 
the  widest  possible  circulation,  and  be  read  above  all  by 
those  who,  whether  as  journalists  or  platform  politicians,  set 
themselves  up  to  represent  public  opinion.  Our  sole  busi- 
ness  is  to  set  the  oppressed  people  free,  to  help  France  in  her 
task.  We  have  nothing  to  do  with  their  domestic  arrangements. 
A  pamphlet,  also  entitled  T/ie  Queslion  of  Alsace-Lorraine, 
came  to  hand  at  the  same  time,  and  contains  a  more  condensed, 
but  quite  admirable,  resume  ef  the  story  from  historical,  racial, 
linguistic  and  economic  standpoints.  It  has  been  compiled 
and  is  published  by  the  Ligue  ['atriotique  des  Alsaciens- 
Lorrains,  the  hon.  president  of  which  is  Lord  lialfour  of  Bur- 
leigh, and  the  acting  president'  M.  E.  Koudolphi.  This  also 
deserves  most  attentive  reading,  and  we  hope  means  may  be 
found  to  put  both  these  essays  in  the  hands  of  multitudes  in 
this  country,  in  America,  and  wherever  the  English  language 
is  used.  The  address  of  the  League  is  :  The  Ligue  Patriotique 
des  Alsaciens-Ixirrains,  18,  Green  Street,  Leicester  Square, 
W.C.  2. 

History  of  Banking  in  Scotland.  By  Andrew  William  Ken. 
F.R.S.   (Edin.).     (A.  and  C.   Black.) 

We  welcome  a  third  edition  of  this  adnxirable  book.  It  is  one 
of  the  best  monograplis  on  the  origin  and  development  of  bank- 
ing that  we  liiave.  True,  it  is  onily  Scotch  banking  that  Mr. 
Korr  concerns  himself  with,  but  the  Scotch  led '  the  way  in 
b.'inking  for  the  United  Kingdom — as  they  did  in  the  develop- 
ment of  insurance — and  the  story  is  full  of  the  romance  of 
industrial  and  commercial  expansdon,  surprisingly  so.  In  this 
edition  the  history  is  brought  well  up  to  date,  with  the  assist- 
ance of  Mr.  Frank  11.  Allan,  of  the  Bank  of  Scotland,  editor  of 
the  Scottish  Bankers^  Magazine,  and  makes  the  work,  not  only 
one  good  and  interesting  to  read,  but  valuable  for  reference. 

Banking  and  Currency.  By  Ernest  Sykes,  B.A.  (Oxon.).  With 
an  introd'Uotion  by  F.  E.  Steele.     (Butterworth  and  Co.) 

Here  we  have  a  fourth  edition  of  a  standard  educational  work, 
and 'that  is  its  best  reoommendatiooi.  It  deals  with  the  practical  . 
business  of  banking  in  all  its  ramifications,  and  at  the  end  there 
is  a  valuable  bibliography,  together  with  a  selection  of  test 
questions  most  useful  to  students.  The  author  even  devotes  a 
chapter  to  the  business,  usages,  and  even  the  slang  current  on 
the  Stock  Exchange. 

A  pamphlet  entitled  The  Case  for  the  National  Emfloyers' 
Federation  has  come  to  hand,  and  is  a  plea  for  the  combination 
of  employers,  not  merely  with  a  view  to  a  co-ordinated  man- 
agemicnt  of  thedc  own  affairs,  but  in  order  to  harmonise,  as  we 
understand  it,  the  interests  of  emipLoyer  and  employed.  No 
names  are  revealed,  which  is  a  pity,  for  we  naturally  distrust 
anonymity,  but  the  Federation  seems  to  be  both  powerful  and 
progressive.  It  was  founded  at  the  time  of  a  strike  in  the 
Midlands,  which  began  in  May,  1913,  in  the  works  of  Messrs. 
John  Russell  and  Co.,  Ltd.,  of  Wednesbury.  At  the  end  of 
July  of  that  year  it  numbered  75  members,  representing  a  total 
"  approximate  wages  assessment  "  of  ^f  2,350,000.  At  Novem- 
ber 19  last  year  the  number  of  members  was  412,  representing 
a  wages  assessment  of  p^ro,ooo,ooo,  and  throughout  its  history 
it  has,  according  to  this  record,  done  excellent  work  in  many 
directions.  Fuoids  are  desired  to  strengthen  it  and  to  provide 
it  with  the  means  of  oarxying  on  its  educational  and  protective 
work.  It  regards  emiployers  as  trustees  for  the  public,  and  will 
make  no  claim  which  does  not  deserve  and  receive  the  support 
of  public  opinion.  This  seems  all  good  and  to  the'purpose; 
but  why  keep  private  the  composition  of  a  body  so  important, 
specially  when  money  is  asked  for? 


be  very  much  at  the  mercy  of  any  group,  however 
povveiful.  .As  we  have  frequently  said,  wc  are  of  the 
same  opinion  as  the  late  Mr.  Charles  Lampard,  who 
knew  the  industry  as  well  as  anyone,  that  it  would  be 
far  better  in  the  long  run  for  everybody  if  the  natural 
laws  of  supply  and  demand  were  allowed  full  play 
without  extraneous  interference,  and  we  hav'e  the 
gravest  doubts  as  to  whether  the  policy  of  the  pro- 
fiteers will  not  react  disastrously  on  them.  It  is  true 
that  for  the  next  few  years  the  increase  in  the  tappable 
area  will  be  relatively  small,  but  that  is  surely  an  argu- 
ment against,  not  in  favour  of,  artificial  restrictions. 
Some  disappointment  was  caused  by  the  announce- 
ment of  the  Kamuning  (I'erak)  Rubber  and  Tin  Co., 
Ltd.,  that  the  directors  have  reluctantly  come  to  the 
conclusion  that  it  would  not  be  wise  to  declare  an  in- 
terim dividend,  whereas  a  year  ago  10  per  cent,  was 
I)aid.  It  is  stated  that  owing  to  the  shortage  of  ship- 
ping facilities  large  stocks  of  rubber  are  held  up  in  the 
lilast,  and  in  addition  there  is  great  delay  in  realising 
such  of  the  output  as  transport  can  be  obtained  for, 
with  the  result  that  a  much  larger  sum  has  to  be  re- 
tained for  financing  unsold  stocks.  At  the  same  time, 
money  has  to  be  provided  for  excess  profits  duty.  For 
the  seven  months  to  the  end  of  January  the  output  was 
542,700  lbs.,  of  which  438,100  lbs.  have  been  sold  at 
an  average  of  2s.  .3.28d.  gross.  The  estimated  output 
for  the  year  was  935,000  lbs.,  but  the  directors  have 
decided  to  join  the  scheme  for  restricting  the  produc- 
tion to  80  per  cent,  of  the  1917  crop,  so  that  for  the 
current  financial  year  the  output  will  be  approximately 
750,000  lbs.  The  logic  is  not  very  convincing,  but  we 
may  let  it  pass. 


Tea,  Oil  and   Rubber. 

One  way  or  the  other  the  price  of  rubber  was  worked 
up  to  over  2s.  5d.,  and  it  has  been  firmly  maintained 
round  that  figure  for  standard  orgpe  and  at  Jd.  less  for 
smoked  sheet.  Thore  is  no  evidence  as  yet  of  restric- 
tion in  supplies  or  the  patriotic  efforts  of  producers  to 
ec<inomise  freight.  On  the  contrary,  the  statistics  show 
that  last  week  1,070  tons  were  landed,  while  only  400 
tons  were  delivered,  leaving  stocks  at  12,895  tons, 
against  10,350  last  year,  and  that  was  well  above 
normal  requirements  unless  shipping  facilities  are  to  be 
much  more  stringently  curtailed.  But  as  we  have  pre- 
viously pointed  out,  there  is  no  danger  of  rubber 
queues  at  present,  and  so  long  as  the  Government  is 
by  far  the  largest  consumer,  it  is  not  likely  to  do  any- 
thing very  drastic  to  raise  the  price  against  itself  un- 
duly. But,  of  course,  we  have  still  to  see  what  effect 
the  20  per  cent,  reduction  in  tapping  may  have,  and 
how  it  will  work.  It  is  said  that  the  growers  are  at  a 
disadvantage  as  compared  with  the  buyers  and  con- 
sumers, becau.so  the  latter  are  better  organised,  and 
can  impose  their  own  terms  more  effectively.  How 
this  can  be  the  case  is  not  very  clear.  It  is  not  so  very 
long  since  buyers  had  to  pay  anything  from  5s.  to 
I2S.  fxl.  to  fill  their  requirements,  and  producers  who 
can  make  a  gross  profit  of  200  to  300  per  cent,  cannot 


Yam  Seng  Ribher  Co.,  Ltd. — Year  to  October  31 — Issued 
capital  ;^42,ooo  in  2s.  shares.  Estate  account  ;^70,390.  Re- 
serves ;^4i,52o. 


1915 

I916. 

1917. 

Nett  profit 

/8.960 

174  p.c. 

/1.400 

252,600 

23.  2jd. 

1.434 
175 

£■5.730 

35  P  c. 

/2,540 
356,550 
2S.  7jd. 

1.434 
250 

/i8,7oo 
374  P  c. 

403,800 
2s.  64d. 

Output 

Average  price   

lbs. 

All-in  cost 

1,198 
310 

Yield  per  acre     

lbs. 

There  are  920  acres  in  reserve.  Balance  forward  is  subject  to 
excess  duty.  Details  of  costs  are  not  furnished,  which  is  rather 
ffxjlish,   as  the  company  appears  to  be  doing  well. 

Tangkah  Rubber  Estai  e,  Ltd. — Year  to  September  30. 
Capital,  ;^32,i3o,  in  312,560  preferred  shares  of  2s.  each  and 
17,500  ordinary  of  is.  each.  Debentures  ;^8i,25o.  Property 
account  ;^ii9,32o.  Output  484,240  lbs.,  increase  112.500  lbs.; 
average  price  as.  6.6od.,  against  2S.  6.33d.  ;  all-in  cost  is.  6.4id., 
against  is.  6d.  ;  nett  profit  ;^i9,85o,  increase  ;f  7,000.  Dividend 
on  preferred  is  raised  from  6  per  cent,  to  10  per  cent.,  and  the 
ordinary  shares  receive  4  per  cent,  (new),  while  ^fio.ooo  is 
placed  to  reserve  and  the  carry  forward  is  increased  by  ^^4,200 
to  ;^8,8oo.  Estimated  output  for  the  current  year  530,000  lbs., 
"subject  to  restriction."  Planted  area  1,53s  acres,  the  youngest 
being  210  acres  in  1911-12.     There  are  1,580  acres  in  reserve. 


The  Week  in  Minos. 

The  Mining  Markets,  in  common  with  other  departments  of 
the  House,  have  this  week  been  under  the  influence  of  the 
Russian  situation.  This  has  had  a  restricting  effect  on  busi- 
ness, but  there  have  been  a  number  of  bullish  movements. 
Broken  Hill  Proprietarys  have  reach  a  new  high  record,  while 
Cornish  Tin  and  Cobalt  Silver  shares  have  been  exceptionally 
active  and  firm. 

SotiTH  AND  West  Africans. 

The  feature  in  the  South  African  market  has  be«n  the 
buoyancy  01  the  Gold  Fields  group,  which  is  attrinuted  to  Lord 
Harris's  remarks  at  the  Gold  Trust  meetiiig  as  to  the  position 
ol  the  American  Development  Corporation.  This  corporation's 
income  is  now  ;^3o,ooo  a  year  in  excess  of  its  expenditure  ;  it 
has  now  the  prospect  of  getting  44  years'  accumulation  of 
dividends,  about  ;£8o,ooo,  on  American  Trona  preference 
shares,  and  has  also  sold  its  large  Mexican  oil  interests  on 
terms  showing  a  substantial  profit.  Gold  Fields  have  risen 
4S.  9d.  to  37s.  3d..  Gold  Mines  Investments  4s.  to  21s.,  and 
South  African  Gold  Trusts  3s.  gd.  to  29s.  Buying  of  the  Con- 
solidated Mines  Selection  group  was  stimulated  by  the  increase 
in  dividend  declared  by  the  parent  company,  being  30  per 
cent.,  as  against  22J.  Consolidated  Mines  Selections  have 
risen  is.  gd.  to  29s.  3d.,  Brakpans  -,V  to  5i,  Rand  Selections 
i\  to  4-fi,  and  Springs  3-32  to  3  10-32.  New  Modderfonteins 
have  also  advanced  J   to  23I,  and   East  Rands  have  recovered 


Makch  2,  1918. 


TTbe  Jnvestors'  IReview. 


333 


to  6s.     Kand   Mines,  however,  have  cased  to   2  ^9-32.    Apart 
from  a  rise  of  -^  to  41^  in  Rezendes,  moTrements  in  Rhodesians 
have  been  slight,  and  business  much  quieter.       Diainonds  are 
lower,  De  Beers  deferreds  being  quoted  at  13.       It  is  reported 
that  the  Board  of  Referees  has  fixed   the  statutory  j.erceutage 
for  West  African  gold  mining  companies  at   22^  per  cent.,  but 
the  principal  shares  show  no  change  on  the  week. 
Copper  and  Miscellaxeo'js. 
In  the    Copper   group,   Arizonas    have    declined  5-32    to   iff, 
following   the  dividend  declaration,  but  Rio  Tintos    at.  64^  and 
\ainaquas  at  ^.i-  are  both  ',  higher.     Tin  shares  have  been   in 
good   request   on  the   high   price  of  the  metal,   and   are   mostly 
higher.     East  Pools  havii  advanced  is.  6d.   to  25s.   gd.,  on  the 
arrangement    made    with    the     Ministry    of     Munitions,      and 
Pahangs  at   12s.    6d.    and   Ipohs   at    17s.   are  both  appreciably 
higher.     Naraguta   Kxtendeds  are  better  at    12s.  6d.       The  de- 
mand for  Cornish   tin   shares  has  been    partly    due  to   reports 
that  for  excess  profits  duty  purposes  tne   statutory  percentage 
for  Cornish  tin   mines  has  been   fixed   at  25s.   per  cent.     Silver 
shares    have    been     in  exceptionally    keen    request    this    week ; 
.Mining  Corporation  of  Canada  shares  have  risen  is.  to  i6s.  gd., 
and  Casey  Cobalts  gd.   to  Ss.  gd.     This  company  has  recently 
leceived  a    dividend   of   77   per   cent,    on   its   holding   of    Casey 
Harris  shares.    Oroville;  have  jumped  up  to  igs.  6d.,  and  Mexi- 
cans  are  better.     In  the   Broken  Hill  group,   Broken    Hill    Pro- 
piictarys  were   largely    bought    on    Colonial   account  after  the 
meeting,   and    are  5s.    6d.    higher  at  68s.   6d.     Russian    shares 
have  been    flat   on  the  German   advance  in    Russia.        Russo- 
Asiatics  have  declined  i  to  2,  Irtysh  Corporations  and  Sisserts 
n',  'o  l|.  ^fd  Kyshtinis  and  'I'analyks  J  to  '. 


What    Balance   Sheets   Tell. 


MINING    NEWS. 


Sheba  GoLu.^Owing  to  the  increased  cost  of  working,  and 
consequent  inability  to  conduct  operations  at  a  profit,  the 
directors  of  this  low-grade  mine  in  the  Lydenburg  district  of 
the  Transvaal  have  decided  to  close  down  the  mine  for  the 
duration  of  the  war.  The  question  of  raising  ^20,000  for 
development  work  in  order  to  open  up  richer  ore  was  discussed, 
but  it  was  found  impossible  to  raise  this  sum.  .Consequently 
the  directors  have  t>een  compelled  to  close  down  the  mine  and 
to  put  the  property  in  charge  of  a  caretaker.  Sufficient  funds 
will  be  available  for  tipkeep  purposes.  No  dividend  has  been 
paid   since  1914-15.     In  January  operations  resulted  in  a  less 

of   ;f2,322. 

FlFK  Coal. — A  reduction  in  profits  in  the  year  ended  Decem- 
ber 31  is  recorded  by  this  colliery,  but  the  falling  off,  which 
is  to  be  attributed  partly  to  the  establishment  of  Government 
control,  still  leaves  the  company  in  the  enjoyment  of  satisfactory 
profits.  These  anjcunted  to  ;f 219, 320,  a  decrease  of  ;^i  11,700. 
This  figure  is  arrived  at  after  providing  for  depreciation, 
debenture  interest,  and  placing  ;^2o,ooo  to  reserve.  The 
ordinary  dividend  is  reduced  from  35  to  25  per  cent.,  tax  free, 
and  ^{'125, 984,  against  ;^I26,397,  is  carried  forward.  The 
directors  state  that,  as  a  result  of  the  war,  trade  ha.s  naturally 
greatly  suffered,  particularly  as  regards  exports,  as  the  outcome 
of  the  steady  withdrawal  of  shipping  tonnage  and  the  conse- 
quent limitation  of  markets.  TTie  restrictions  these  impose  have 
materially  reduced  the  earning  capacity  of  the  undertaking. 
An  agreement  governing  the  financial  interests  of  the  collieries 
was  negotiated  between  the  Controller  and  the  Mining  Associa- 
tion of  Great  Britain,  and  this  agreement  is  in  process  of 
receiving  Parliamentary  sanction. 

PowKLL-Di^FFRV.N'.— The  report  for  191 7  shows  that  the  nett 
profit,  after  providing  for  excess  profits  duty  and  depreciation, 
was  /,'52i,745,  or  ^^26,047  more  than  in  igi6.  This  increase — 
an  exception  to  the  rule,  for  most  colliery  companies  have  sus- 
tained a  decrease — was  apparently  due  to  an  expansion  in  out- 
put, which  rose  from  3,659,016  to  3,722,873  tons.  This  expansion 
in  production  was  due  to  the  more  extended  use  of  mechanical 
appliances,  which  reflects  credit  upon  the  resourcefulness  of  the 
management  in  meeting  the  shortage  of  labour.  The  ordinary 
dividend  is  maintained  at  20  per  cent.,  and  in  order  that  this 
may  be  paid  free  of  tax,  £in,yoo,  as  compared  with  ;£97,ooo, 
is  transferred  to  income-tax  reserve.  General  reserve  gets 
jC7.'iiOoo,  or  ;f25,ooo  more  than  last  year,  but  the  carry  forward 
is  reduced   by  ^16,100  to  ;^io3,69i. 


Mr.  C.  F.  Minnitt,  who  for  some  years  past  has  held  the 
position  of  inspector  of  branches  for  the  New  Zealand  Insur- 
ance Co.,  Ltd.,  has  been  appointed  assistant  manager  of  their 
London  branch. 

A  dispute  which  has  lasted  for  more  than  a  hundred  years 
between  Canada  and  the  United  States  seems  to  have  been 
quietly  settled.  I'or  orders  have  been  issued  by  the  Washington 
Government  to  allow  Canadian  fishing  vessels  to  enter  and 
dear  between  American  ports  and  the  fishing  banks  without 
putting  into  a  Canadian  port  and  changing  their  status  from 
a  fishing  to  a  cargo-carrying  one. 

Herr  von  Brettreich,  the  Bavarian  Minister  of  the  Interior, 
told  the  Landtag  that  there  were  supplies  of  grain  for  fully 
a  month  less  than  the  first  estimates  had  indicated,  and  that 
there  is  no  great  hope  of  the  Ukraine 'harvest  permitting  any 
increase  in  the  rations.  That  is  as  we  have  said.  The  Germans 
are  not  likely  to  get  much  grain  from  that  quarter  or  anywhere 
in  Russia  by  their  present  famine-prompted  dash  into  that 
country. 


WESTERN  AUSTRALIAN  BANK. 

Business,  apparently,  was  not  particularly  good  in  Westraha 
last  year,  and  the  profits  of  this  banl:  for  the  six  moDths  to 
September  24  was  slightly  smaller  at  ;^27,7is.  However,  this 
was  sufficient  to  repeat  the  dividend  of  £1  iper  shaie  (20  per 
cent.),  free  of  State  dividend  tax,  and  £2,yoo  more  at  ;^i6,o85 
remained  to  be  carried  forward.  Changes  as  compared  with 
the  previous  half-year  are  unimportant,  but  deposits  are  up 
;f  100,000  at  ;£2, 446,000,  while  cash  arid  Commonwealth  notes 
have  increased  ;£5o,ooo  to  ;^67o,ooo.  On  the  other  hand,  bills 
receivable  are  £j4,ooo  lower  at  x^2,442,ooo.  The  capital  is  only 
^^250,000,  while  the  reserve  is  ;^70o,ooo.  and  although  it  is  a 
small  concern  as  things  are  judged  nowadays,  it  looks  sound  and 
prosperous. 

IMPERIAL   BANK    OF   PERSIA. 

In  the  year  to  September  20  the  nett  profits  were  £8s,obo, 
an  increase  of  ;£3i,ooo,  and  £s,ooo  more  was  brought  forward. 
The  dividend  is  accordingly  raised  from  7B.  to  8s.  per  share, 
tax  free,  tequiring  an  additional  ;£5,noo,  while  ;f3o,ooo,  or 
;^2o,ooo  more,  is  placed  to  reserve,  and  ;£i  0,000  (new)  is 
written  off  bank  premises,  leaving  ;^24,240  to  be  carried  for- 
ward. Notes  in  circulation  irrrca-sed  ;^38o,ooo  to  ;£j52,ooo, 
deposits  ;^46o,ooo  to  ;^i, 188,000,  and  bdls,  endorsements,  &c., 
^820,000  to  ;^'i, 710,000.  Cash  in  hand  is  £1^^0,000  'Mgher  at 
^1,175,000,  in  addition  to  one  million  in  Treasury  bills,  but 
money  at  call  has  dropped  from  ;f  178,000  to  ^32,000.  Invest 
ments  have  risen  ^^140,000  to  ;^55S,ooo,  advances  are  a  little 
higher  at  ;<^i, 210,000,  and  bills  receivable  have  increased 
jfoo.ooo  to  ;£336,ooo,  with  the  result  that  the  balance-sheet  total 
is  ;^i, 700,000  up  at  ;f 4,350,000.  Evidently  the  miUtary  opera- 
tions in  that  region  have  done  the  bank  some  good. 

RYLANDS  AND   SONS,  LTD. 

Splendid  results  are  shown  for  the  half-year  to  December  31, 
the  nett  profits  being  practically  doubled  at  ;^3go,i4o.  With 
jf34,ooc  more  brought  in,  the  total  available  is  ;Ji'8o,ooo  higher 
at  £4S^>,3oo,  and,  in  addition  to  the  regular  dividend  at  the 
rate  of  10  per  cent,  per  annum,  the  bonus  is  raised  from  4s.  to 
5s.  per  £1$  share.  Tlie  staff  consideration  fund  again  receives 
;fio,ooo,  and  ;fi9o,ooo  against  ;f6o,coo,  is  placed  to  war  con- 
tingencies fund,  leaving  ;f 44,000  more  at  ^181,300  to  go  for- 
ward. We  are  very  pleased  to  notice  that  the  'tems  in  the 
balance-sheet  are  now  more  fully  segregated,  and  they  disclose 
A  position  of  unassailable  strength. 

LINEN  THREAD  CO.,  LTD. 

In  the  year  to  Septesmber  30  the  nett  profits,  after  providing 
for  excess  duty,  income-tax,  &c.,  amounted  to  ;^284,20o,  an  in- 
crease of  ^8,ooo,  and,  with  ^^45,000  more  brought  in,  the  avail- 
able balance  is  .1^53,000  higher  at  ^524,000  The  directors, 
however,  are  content  to  leave  the  dividend  at  6  per  cent.,  and 
the  bonus  at  5  per  cent.,  both  tax  free,  while  they  double  the 
appropriation  to  reserve  at  £ic>o,ooo  and  increase  the  carry- 
forward by  ;^3,ooo  to  ;^242,6oo.  The  reserve  will  now  stand  at 
a  round  half-million.  Advances  to  subsidiary  companies  have 
increased  ;f  130,000  to  ;^6i  1,000,  stocks  ;^75,ooo  to  ;(f682,40o, 
and  debtors  ;^i9o,ooo  to  ^400,600.  The  financial  position  looks 
bU  that  could  be  desired.  > 

UNITED  STATES  TRUST  CORPORATION,  LTD. 

Although  the  book  value  of  investments  at  the  end  of  Decem- 
ber was  ;^43,ooo  lower,  the  gross  income  for  the  year  shows 
an  increase  of  ^^7,400,  and  ;^2,ooo  more  was  brought  in. 
Charges,  including  interest  on  loans,  were  higher,  and,  after 
again  paying  a  dividend  of  10  per  cent,  for  the  year,  ;^7,ooo 
(new)  is  placed  to  reserve,  and  the  carry  fonvard  is  increased 
by  ;£i)4oo  to  jfi4,2oo.  It  is  stated  that  a  conservative  valua- 
tion of  the  investments  shows  a  surplus  on  the  book  value, 
but  there  has  apparently  been  a  good  deal  of  shifting  of  the 
securities  held,  as  the  bonds,  debentures,  &e.,  held  have  in- 
creased from  53  per  cent,  to  59^  per  cent,  of  the  total,  while  the 
preferred  stocks  have  fallen  from  21.4  per  cent,  to  15.3  per 
':>ent.  The  resei-ve  fund  now  amounts  to  ;^45,ooo,  but  that  looks 
terribly  meagre  against  share  and  debenture  capital  amounting 
to  ;^7oo,ooo. 


NOTICE. 

IMPERIAL  JAPANESE  GOVERNMENT 

5  PER  CENT.  STERLING  LOAN  OF  1907. 

NOTICE  IS  HEREBY  GIVEN  that  the  COUPONS  due 
12th  March,  1918.  will  be  PAID  on  and  a'ter  that  date  (Saturdays 
excepted),  between  the  hours  of  11  and  3,  by  the  Yokohama  Specie 
Bank,  Ltd.,  where  lists  may  be  obtained. 

Coupons  must  be  left  three  clear  days  for  examination  prior  to 
payment. 

For  the  Yokohama  Specie  Bank,  Ltd., 

K.  TATSUMI,  Manager 
Bishopsgate,  London,  E.G. 2,  25th  February, -1918. 


*34 


tCbe  Jnveetote'  IRevtew. 


March. 2,  1918. 


COMPANY  MEETINGS. 

MATHER    AND    PLATT. 

The  twentieth  annual  general  meeting  of  the  shareholders 
of  Mather  and  Piatt,  Limited,  was  held  on  Wednesday,  at  the 
Chartered  Accountants'  Hall,  Manchester,  faptain  I,.  K. 
Mather  (the  chairman)  presiding. 

The  Secretary  (Mr.  Nurnon  R.  Milnerl  having  read  the  notice 
convening  the  meeting  and  the  report  of  the  auditors, 

The  Chairman  said  :  I  am  glad  to  address  you  to-day  after 
another  successful  year,  which  has  produced  nearly  as  large  a 
pront  as  the  preceding  one,  after  making  provisions  for  various 
conditions  brought  about  by  the  war.  The  prosoects  for  191 7 
did  not  seem  very  rosy  a  year  ago,  in  view  of  the  increasing 
cost  of  materials  and  advances  in  wages,  but  hicrher  prices  and 
an  increased  turnover  have  redressed  the  balance.  To  give 
you  an  idea  of  what  the  advances  in  wages  alone  mean,  we  com- 
menced the  present  vear  with  an  increased  wages  bill  of  more 
than  ;^8o,ooo  over  1914,  whilst  the  number  of  emplovees  has 
only  slightly  increased.  We  have  transferred  a  considerable 
sum  to  an  income-tax  equalisation  account.  This  is  for  the 
purpose  of  assisting  any  lean  year  in  the  future  which  might 
be  called  upon,  through  the  incidence  of  taxation  based  on  the 
average  of  the  three  previous  years,  to  bear  a  larger  amount 
of  income-tax  than  was  represented  in  the  profits  of  that  year ; 
for  instance,  a  cheaue  recently  paid  for  income-tax  was  partly 
based  on  1914  and  1915  profits.  It  appeared  to  your  directors 
that  this  provision  was  a  proper  one  to  make.  An  item  which 
might  call  for  criticism  if  left  unexplained  is  the  increased 
carry  forward  of  ^95,000,  but  I  hope  the  shareholders  will  en- 
dorse the  wisdom  of  our  decision,  in  view  of  the  transitional 
conditions  of  trade  and  employment  between  the  termination 
of  the  war  and  the  restoration  to  normal  conditions.  A  new 
director  has  been  appointed,  subject  to  your  confirmation,  in 
the  person  of  .Mr.  Martin  Cox.  the  late  manaeer  of  our  busi- 
ness in  Russia.  Mr.  Cox  has  spent  most  of  his  business  life 
in  Russia,  and  I  am  sure  you  will  welcome  him  as  a  director, 
not  only  in  view  of  our  interests  in  that  country,  but  also  as 
one  of  our  staff  who  has,  for  many  years,  taken  a  most  active 
and  successful  part  in  establishing  our  trade  in  foreign  fields. 
He  will  continue  to  fake  an  active  part  in  the  management 
of  the  company  at  our  London  office.  This  leads  me  to  the 
position  of  our  Russian  business,  about  which  you  will  doubt- 
less like  to  hear  .something.  Our  business  connections  in 
Russia  have  been  very  extensive,  both  in  the  unoccupied  parts. 
of  the  country  and  in  those  provinces  occupied  by  the  enemy. 
Although  our  clients  have  in  general  fully  met  their  engage- 
ments, it  has  not  been  possible  for  a  long  time  to  remit  money 
home,  and  consequently  we  have  considerable  sums  to  our 
credit  in  that  country.  We  have  therefore  thought  fit  to  make 
due  allowance  for  the  depreciation  of  our  rouble  assets  and 
other  possible  losses.  We  cannot  expect  Russian  e.xchange  to 
recover  its  pre-war  value  for  a  long  time  to  come,  if  ever,  and 
we  have  taken  this  fully  into  account.  Although  the  present 
state  of  Russia  is  chaotic,  it  must  not  be  considered  hopeless, 
and  we  have  every  prospect  of  re-establishing  our  trade  with 
the  Russian  people  when  they  have  shaken  off  the  tyranny  of 
German  domination. 

It  may  interest  you  to  know  that  we  are  keeping  abreast  of 
the  times  in  an  effort  to  improve  the  education  of  the  rising 
generation  by  the  institution  of  a  works  school  for  instruction 
during  working  hours.  As  long  ago  as  1873  my  father  started 
an  evening  works  school  in  connection  with  the  old  works  at 
Salford,  which  flourished  for  30  years,  and  was  only  given 
up  when  the  technical  schools  of  Manchester  and  Salford  were 
established.  In  spite  of  the  excellent  opportunities  afforded  bv 
these  schools,  we  have  found  that  they  cannot  take  the  place 
of  instruction  given  by  our  own  staff,  who  are  closely  in  con- 
tact with  the  boys'  daily  occupations,  nor  is  it  desirable  nowa- 
days, when  higher  education  is  essential,  to  exact  compulsory 
attendance  at  night  school,  even  under  the  eight-hour  day 
system,  as  worked  in  our  shoos.  We  started  these  day  classes 
some  18  months  ago  in  a  small  way,  and  the  progress  has  been 
so  satisfactory  that  we  intend  gradually  to  increase  the  number 
of  boys,  and  to  extend  the  hours  and  range  of  instruction. 
This  is  a  step  towards  meeting  the  provisions  contained  in  Mr. 
Fisher's  Education  oiU,  and  we  hope  that  compulsory  con- 
tinuation classes  will  soon  be  the  law  of  the  land.  We  have 
also  held  lectures  of  an  educational  character  at  our  works 
for  the  benefit  of  our  employees  from  time  to  time,  which  have 
been  greatly  appreciated,  and  we  intend  to  continue  them. 
Much  has  been  heard  lately  of  unrest  in  the  labour  world, 
but  I  am  glad  to  say  that  we  have  been  little  affected,  and  we 
owe  a  debt  of  gratitude  to  our  workers,  who  have  refused  to 
be  led  astray  by  the  irrational  advice  of  a  few  misguided  and 
irresponsible  persons.  I  am  confident  that  a  spirit  of  greater 
trust  between  employers  and  employed  can  only  be  obtained  by 
a  clearer  understanding  of  the  different  points  from  which 
situations  are  viewed,  and  the  utmost  integrity  being  shown  by 
the  management  in  all  that  affects  the  workers'  outlook.  It  is 
too  much  to  expect,  in  my  opinion,  that  the  workers  will  alto- 
gether abandon  restrictive  practises  until  their  employers  have 
first  given  positive  proof  that  they  are  endeavouring  to  make 
working  conditions  and  the  continuity  of  employment  better 
than  they  have  ever  b.-en  before.  I  cannot  close  without  pay- 
ing a  tribute  to  those  of  our  employees  who  are  still  serving 
their  country  in  arms  in  various  parts  of  the  globe,  and  to 
those  who  are  prisoners  of  war,  especially  those  of  our  sUrff 
interned  at  Ruhleben.  The  pluck  and  cheerfulness  shown  by 
all    provides   an   exami'le   which   we  at   home   will  do  well    to 


keep  continually  before  us.  In  return  we  must  render  every 
assistance  to  them  in  the  trials  and  dangers  which  they  bavi 
faced,  are  now  facing,  and  are  ready  to  face  again  in  order 
to  achieve  complete  victory  and  lasting  peace. 

.\lr.    John    IMatt    seconded    the    motion,   which    was    -arried 
unanimously. 


BOVRIL- 

The  twenty-first  annual  general  meeting  of  Bovril,  Ltd.,  wa^ 
held  on  Tuesday  at  River  Plate  House,  Finsbury  Circus,  E.C., 
Mr.  George  Law.son  Johnston  (the  chairman  of  the  company) 
presiding. 

Mr.  George  Lawson  Johnston  (chairman),  in  moving  the 
adoption  of  the  report,  referred  to  the  general  food  position 
and  how  the  price  of  Dovril  had  been  kept  down.  Your  own 
experience,  he  said,  will  have  brought  you  into  touch  with  in- 
creases in  price  in  most  directions,  and  you  will  have  seen  that 
the  Board  of  Trade  returns  show  a  long  list  of  rises  of  100  f>cr 
cent,  or  more  in  the  r  est  of  foodstuffs  since  the  commencement 
of  the  war.  I  cannot  call  to  mind  many  articles  the  prices  of 
which  have  not  been  raised  during  the  war,  and  I  believe 
Bovril  i.s  the  only  national  standard  food  that  is  .sold  at  th<- 
same  price  in  February,  1918.  as  it  was  in  July.  1914.  That 
the  price  of  Bovril  has  not  been  uio'.cd  up  '.vith  tlie  cost  of  beef, 
although  a  pound  of  Bovril  is  the  concentrated  product  of  so 
many  pounds  of  beef,  is  an  outstanding  fact  that  requires  ex 
planation.  In  the  first  place,  in  the  countries  which  supply  the 
raw  material  for  Bovril,'  beef  has  not  risen  in  value  as  it  has 
here.  Again,  the  abnormal  cost  of  ocean  transport  only  to  a 
minor  extent  affects  a  concentrated  preparation  like  ours,  mak- 
ing, as  it  does,  such  small  demand  upon  shipping  space.  Apart 
from  the^e  general  tendencies,  you  are  aware  that  during  the 
last  dozen  years  we  have  endeavoured  by  the  agency  of  sub- 
sidiary land  and  cattle  companies  to  control  and  develop  new 
sources  for  the  supply  of  raw  material.  This  policy  has  borne 
good  fruit  during  the  war.  These  precautions,  taken  in  past 
years,  have  ensured  us  the  plentiful  supplies  that  are  so  essen- 
tial at  the  moment,  and  our  material  has  not  increased  in  orice 
to  anything  like  the  extent  of  the  raw  material  of  some  other 
industries.  Taking  all  this  into  consideration,  and  realising 
that  Bovril  enters  so  largely  into  the  food  of  the  nation,  we  felt 
that,  with  the  increased  sales  and  profits  outside  Bovril  itself, 
we  should  be  able  to  keep  the  company's  revenue  at  pre-war 
standard  without  adding  to  the  hardships  of  the  community.  I 
am  glad  that  our  foresight  has  not  only  been  to  our  benefit  a^ 
shareholders,  but  to  the  benefit  of  every  Bovril  consumer.  His 
Bovril  has  cost  him  no  more,  unless  he  has  consumed  more — 
which  I  am  afraid  he  has.  I  think  we  can  consider  this  com- 
pany  a  miniature  democratic  institution.  We  are  a  co-opera- 
tive body  of  over  1 1,000  shareholders,  and  we  control  provinces 
in  the  form  of  estates  in  Australia  and  the  Argentine  of  9! 
million  acres,  upon  which  there  are  over  2:0,000  head  of  cattle. 
We  manage  to  produce  our  beef  product  at  a  cost  which  ha> 
enabled  us  to  provide  our  millions  of  consumers  with  Bovril  at 
prices  unaltered  durin"  the  war.  It  may  surprise  you  when  1 
say  the  cost  of  rearing  a  9  to  lo  cwt.  steer  on  the  Bovril  Aus- 
tralian estates  does  not  amount  to  60s.  altogether,  and  though 
the  cost  is  considerably  more  in  Eastern  Australia  and  the 
Argentine,  my  point  is  that  the  rearer  of  stock  in  the  northern 
part  of  this  hemisphere,  particularly  in  the  thickly  populated 
parts  of  Europe,  has  no  chance  in  competition  with  the  stock 
raised  in  the  open  plains  of  the  southern  hemisphere — Aus 
tralasia,  South  America,  Africa.  >fore  especially  will  this  be 
the  case  in  normal  times — .say  after  the  war — when  frozen  beef 
will  be  sent  thousands  of  miles  to  these  shores  at  a  transport 
cost  so  low  that  it  can  be  covered  by  the  utilisation  of  by- 
products at  the  great  freezing  works  of  South  America  and 
Australia,  by-products  which  cannot  be  so  economically  handled 
in  the  comparatively  small  butchering  establishments  of  this 
country.  The  cost  of  raising  stock  in  Argentina  and  Australia 
is,  roughly  speaking,  the  interest  on  capita!  invested  in  thr- 
cattle  and  the  land.  The  cattle  are  never  under  cover,  and  thr 
number  of  men  employed  is  so  small  that  the  payment  to  labour, 
spread  over  the  head  of  cattle,  has  little  effect  on  the  final  cost 
As  regards  the  United  States,  though  they  are  good  enough  t<.' 
export  beef  here  at  present,  that  country  will  later  have  t" 
buy  heavily  in  the  southern  hemisphere  in  order  to  feed  her 
own  growing  population.  I  have  taken  up  your  time  explain 
ing  the  matter — little  realised  in  Britain — in  the  hope  that  my 
remarks  may  reach  the  eyes  of  some  farmers  who  do  not  realise 
that  the  paternal  Ministry  that  is  forcing  them  to  plough  up 
their  grass  land  is  not  only  doine  so  on  account  of  the  imme- 
diate w^ar  necessity,  but  because  the  getting  of  a  larger  por- 
tion of  their  farms  under  cereal  production  will  be  of  the  utmost 
permanent  advantaee  to  themselves  and  the  State. 

The   Earl   of   Erroll,    K.T..   seconded   the   resolution,    which. 
after  a  brief  discussion,  was  adopted. 


UNITED    STATES    DEBENTURE 
CORPORATION. 

The  ordinary  general  meeting  of  the  United  States  Debenture 
Comporation,  Ltd.,  was  held  on  Tuesday  at  Winchester  House, 
Old  Broad  Street,  E.C..  Mr.  Frank  Chaplin  (the  chairman) 
presiding. 

The  Secretary  (Mr.  W.  G.  Lock,  F.C.I.S.),  having  read  the 
notice  convening  the  meeting  and  the  report  of  the  auditors. 

The  Chairman  said  :  The  principal  item  in  the  balance-sheet 
is  that  of  investments — ^2,072,958-— which  is  the  highest  figur:' 
we  have  ever  shown.  This  is  due  partly  to  our  subscription  of 
;^2oo,ooo  5  per  cent.  War  Loan.  We  have  during  the  year 
paid  this  up  in  full,  and  have  taken  a  small  loan  of  ^^26,000 — 


J 


NUrch  2,  191*. 


^be  Jnveetors'  IRevtewj 


235 


I 


showa  on  the  debit  side— to  help  in  doing  so.  Moreover,  last 
year  we  had  a  very  large  sum  in  cash— ^^62,117— whereas  this 
year  the  cash  at  January  3:  amounted  to  only  ;^i2,oio.  From 
pra<;ticaUy  these  two  sources,  therefore,  has  come  nearly  the 
whole  of  the  increase  in  the  investments.  While  the  amount  in- 
vested h:is  shown  an  increase,  there  has  been  a  very  gradual 
diminution  in  the  number  of  our  investments,  which  in  tlie 
year  igi4  were  444  in  number,  but  which  this  years  have  bran 
brought  down  to  the  figure  of  424,  thus  realising  some  of  our 
iuvestmcnts  which  showed  a  urofit,  or  which  for  other  reasons 
we  thought  it  desirable  to  sell.  The  result  has  been  the  satis- 
factory surplus  on  realisation  of  ^^20,280.  As  regards  re- 
valuation, these  are  days  when  a  good  deal  of  depreciation 
exists,  even  in  the  highest-class  securities,  as  compared  with 
prices  prevailing  before  the  war,  although  there  is  practically 
no  diminution  in  the  intrinsic  security  of  the  capital  of  these 
investments,  which,  perhaps,  remains  as  good  as  ever.  in 
other  cases  there  has  been  depreciation  by  reason  of  totalor 
partial  default  in  payment  of  interest  or  a  diminution  in  divi- 
dends, and  these  hazards  are  inseparable  from  times  like  !he 
present.  It  is  possible  that  within  a  few  years  after  the  ter- 
mination of  the  war  many  securities  will  appreciate  somew!iat 
in  value,  although  it  is  doubtful  if  they  will  get  back  to  the 
[irices  prevailing  early  in  1914  for  many  years  to  come.  Under 
these  circumstances  too  much  importance  should  not  be  attacticd 
to  valuations  at  the  present  time,  but  the  estimate  we  Ii;re 
made  shows  a  net  balance  of  appreciations  on  all  our  securiLlos 
during  the  year  of  about  ^41,000.  In  times  of  stress  and 
anxiety  like  the  present  wo  really  think  that  that  is  not  at  all 
unsatisfactory,  and  is  some  evidence  of  the  soundness  of  the 
bulk  of  the  investments  which  we  possess,  and  also  of  the 
principle  upon  which  trust  companies  are  founded  and  workcl. 
The  one  large  item  of  revenue  arises  chiefly  from  dividends 
and  interest,  and  amounts  this  year  to  ,^111,095,  as  against 
;^i04,66i  last  year,  an  increase  of  ;^6,434.  \A'ith  the  exception 
of  the  year  ended  January  31.  1914,  when  we  touched  high, 
water  mark  by  receiving  2^112,751,  this  is  the  largest  amouni 
of  revenue  we  have  ever  had  the  satisfaction  of  showing  in 
our  accounts.  We  have  also  been  somewhat  fortunate  this  year 
in  connection  with  underwriting  commissions,  which  amount 
to  ^2,747.  The  result  has  been  to  give  us  a  total  revenue,  in- 
cluding the  sum  of  ^3,950  brought  forward  from  last  year,  of 
/■i  17,793.  There  is  an  item  which  appears  as  a  charge  against 
revenue  for  the  first  time  in  our  accounts — namely,  staff  pension 
fund,  ;^2,ooo.  We  thought  we  would  take  advantage  of  what  is 
a  good  year  to  initiate  a  staff  pension  fund,  to  which  addi- 
tions can  be  made  from  time  to  time,  when  we  think  the 
revenue  account  justifies  it.  After  making  all  deductions  we 
are  able  to  recommend  a  dividend  of  10  per  cent,  for  the  year, 
which  we  have  maintained  for  a  period  of  six  years,  and  also  to 
ndd  very  largely  to  our  carry  forward,  which  is  rai.sed  from 
/3r950  to  .,^10,675. 

Mr.    Nathaniel    Spens   seconded    the    resolution,    which    was 
carried  unanimously. 


WM.  FRANCE,  FENWICK,  AND  CO. 

The  seventeenth  annual  meeting  of  Wm.  France,  Fenwick, 
and  Co.,  Ltd.,  was  held  on  Tuesday  at  the  offices,  5,  Fenchurch 
Street,  Mr.  C.  F.  H.  Leslie,  a  managing  director  of  the  com- 
pany, in   the  chair. 

The  Secretary  (Mr.  C.  Warren)  having  read  the  notice  con- 
vening the  meeting. 

The  Chairman  .said; — The  trading  profit  for  the  year  1917 
amounts  to  ;^i66,946.  When  we  have  provided  for  all  fixed 
charges  the  net  profit,  including  the  sum  brought  forward, 
amounts  to  ^79,716.  After  paying  the  full  preference  dividend 
at  the  rate  of  5^  per  cent.  Jpr  the  year,  amounting  to  .£8,250, 
and  placing  .£25,657  to  the  general  reserve  fund,  there  remains 
a  balance  of  £'45,809,  out  of  which  your  directors  now  recom- 
mend a  dividend  and  bonus  on  the  ordinary  shares  for  the  year 
amounting  together  to  25  per  cent.,  on  account  of  whicJi  an 
interim  distribution  of  10  per  cent,  was  paid  in  September  last. 
This  will  leave  a  sum  of  .£8,309  to  be  carried  forward.  During 
the  year  1917  we  have  sold  one  steamer,  and  lost  as  the  result 
01  a  col1:>ion  one  steamer.  Wo  are  therefore  operating  a  fleet 
(lecrcasrd  as  compared  to  the  year  1916,  and  our  earninq 
rapacity  has  correspondingly  diminished.  There  is,  however, 
another  side  from  which  I  think  wo  may  correctly  survey  our 
position,  and  that  is  from  the  point  of  view  of  the  increased 
financial  strength  of  tlie  company,  as  shown  by  the  balance- 
sheet.  The  reserve  fund  stands  to-day  at  ^750,000,  entirely  con- 
sisting of  iSritish  Government  securities.  I' or  the  time  being  we 
are  unable  to  apply  any  portion  of  this  fund,  as  in  pre-war 
years,  towards  the  renewal  and  increase  of  the  fleet  owned  by 
the  company,  because  the  whole  of  the  shipbuilding  facilities  of 
the  United  Kingdom  are  being  monopoli,sed  by  the  Govern- 
ment. It  has  therefore  come  about  that  the  reserve 
fund  is  now  being  lent  to  the  Government,  and  applied, 
amongst  other  purposes,  to  the  Government's  own  ship- 
building programme.  Since  the  issue  of  this  report, 
the  company  has  lost  another  steamer.  As  a  conse- 
quence of  these  losses,  our  revenue  account  from  steamers  has 
n.aturally  decreased,  and  is  liable  to  decrease  still  further : 
moreover,  the  cost  of  operating,  insuring,  and  repairing  the 
remainder  of  the  fleet  is  slill  increasing,  while  the  Blue  Rook 
rates  we  are  receiving  from  the  Government  have,  since  thov 
werp  fixed  in  the  early  months  of  the  war,  remained  stationary. 
On  the  other  hand,  we  receive  increased  amounts  of  interest  on 
the   investments     which     constitute    our     reserve     fund,     and. 


although  it  is  advisable,  it  is  no  longer  essential  to  add  to  that 
fund.  Your  directors  therefore  see  no  reason  why  they  should 
anticipate  any  decrease  in  the  annual  amount  available  for 
purposes  of  distribution  among  the  shareholders.  It  has  for 
some  tim«  been  a  subject  of  consideration  by  your  directors 
whether  the  time  has  not  come  for  capitalising  a  portion  of  the 
accumulated  profits  of  the  company.  It  is  probable,  therefore, 
that  we  shall  call  you  together  in  the  near  future  for  the  pur- 
pose of  S'ubmiitting  resolutions  to  give  effect  to  the  recommenda- 
tions which  your  directors  hope  to  be  able  to  put  before  you. 

Mr.    H.    C.    Pelly    seconded  the  motion,  which    was   carried 
unanimously. 

DIVIDENDS     ANNOUNCED. 


Aramayo  Francke  Mines.— is.  per  share  for  1917-18,  paid  less 
tax,  the  same  as  a  year  ago. 

Arizona  Copper.— Final  to  September  30  of  is.  gd.  per  share, 
making  4s.  per  share  for  year,  will  be  paid  free  of  tax  on 
March   20.     For  191 5-16  the  dividend  was  the  same. 

Broken  Hill  Soutti  Silver  Mining  Company.— 6s.  per  share, 
payable  on  March  28,  the  same. 

Broken  Hill  Proprietary  Block  14  Company.— 9.6d.  per  share 
on  preference  shares  and  6d.  per  share  on  ordinary  shares, 
both  less  tax,  payable  March  27,  the  same  as  a  year  ago. 

British  American  Tobacco  Company. — Interim  of  6  per  cent. 
for  1917-18  on  ordinary  shares,  free  of  British  income-tax, 
payable  March  27. 

British  Gas  Light  Company.— At  rate  of  10  per  cent,  per 
annum,  with  a  bonus  of  2s.  6d.  per  share,  for  half-year  ended 
December  31,  both  less  tax,  the  same  as  a  year  ago. 

Batu  Rata  (Sumatra)  Rubber  Plantations.— Interim  7^  per 
cent.  (is.  6d.  per  share),  less  tax,  for  period  to  Juno  30  next, 
against  10  per  cent,  a  j'ear  ago. 

Charter  Trust  and  Agency.— For  year  ended  N'ovemoer  30.  On 
ordinary  stock  2  per  cent.,  the  same  as  last  year. 

Courtaulds,  Ltd. — Final  17^  per  cent.,  less  tax,  for  1917 
(making  30  per  cent,  for  year),  the  same  as  for   igi6. 

Consolidated  Mines  Selection  Company. — 30  per  cent.  (3s.  per 
share),  less  tax;  £^20,000  to  reserve  A  year  ago  the  dividend 
was  22^  per  cent.  (2s.  3d.  a  share),  with  ^"15,000  to  reserve. 

Harrods  Stores. — For  year  ended  January  31  last,  final  on 
ordinary  shares,  10  per  cent.,  making  15  per  cent,  for  the 
year  (the  same)  :  dividend  for  year  on  founders'  shares,  43! 
per  cent. 

Kensington  and  Knightsbridge  Electric  Lighting  Company. — 
4  per  cent,  for  half-year  ended  December  31,  making  7  per 
cent,  for  year,  against  5  per  cent,  for  igi6. 

Leach's  Argentine  Estates. — Interim  3  per  cent,  on  the  pre- 
ference and  ordinary  shares,  payable  March  11,  the  same  as  a 
year  ago. 

Leyland  and  Birmingham  Rubber. — Interim  of  5  per  cent. 
(actual),  the  same  as  last  year. 

Mexican  Petroleum  Company  of  Delaware. — On  common 
stock  of  $2  per  share,  pa3-able  April  10,  one-half  in  cash  and 
one-half  in  second  Liberty  bonds. 

The  Mint,  Birmingham. — At  rate  of  6  per  cent,  per  annijm, 
less  tax,  on  preference  shares  .'or  the  six  months  ending 
March  31. 

Mexico  Mines  of  F.l  Oro.— (No.  27)  4s.  per  share,  payable, 
free  of  tax,  on  March  28. 

North's  Navigation  Collieries  (1S89). — Finn!  of  12^  per  cent., 
making  20  per  cent,  for  1917. 

Norraanby  Ironworks. — Interim  of  5  per  cent,  (actual),  less 
tax,  the  same  as  a  year  ago. 

Pan  American  Petroleum  and  Transport  Company. — On  com- 
mon stock  at  rate  of  10  ner  cent,  per  annum,  one-half  in  cash 
and  one-half  in  second  Liberty  bonds. 

Powell  Duffryn  Steam  Coal  Company.— Final  of  10  per  cent. 
(free  of  tax),  making  20  per  cent. 

Richmond  Gas  Stove  and  Meter.— Final  of  5  per  cent,  (actual) 
and  IS.  per  share  bonus. 

Railway  Investment  Company. — For  year  ended  January  31 
of  15s.  2d.  per  cent,  on  deferred  stock. 

Standard  Bank  of  South  Africa,— For  half-year  ended  Decem- 
ber 31  at  rate  of  14  ner  cent,  per  annum,  with  a  bonus  of  is.  4d. 
per  "share,  both  subject  to  tax,  making  a  total  distribution  of 
15I  ner  cent,  for  191 7,  against  14  per  cent. 

Swan,  Hunter,  and  Wigham  Richardson,— Further  10  per 
cent,  on  ordinary  shares,  free  of  tax,  to  be  paid  on  March  i. 

Stratford-upon-Avon  and  Midland  Junction  Railway  Com- 
pany.—On  ordinary  stock  of  ;£i  7s.  6d.  per  cent,  for  year  1917 ; 
forward,  £'343,  against  ,£350  for  1916,  when  the  dividend  was 
the  same. 

Sumatra  Para  Rubber  Plantations. — Interim  of  3d.  per  share, 
less  tax,  in  respect  of  the  period  to  June  30  next,  the  same 
ns  a  year  ago. 

Shelton  Iron,  Steel,  and.  Coal  Company. — Further  interim  of 
Ts,  per  share,  less  tax,  on  account  of  1917,  the  same  as  a  year 
ago. 

Wigan  Coal  and  Iron  Company.  Further  of  6  per  cent.,  free 
of  tax,  making   10  per  cent,  for  1917,  the  same  as  for   1916. 

World  Marine  and  General  Insurance  Comnan". — 4s.  a  share 
on  paid  up  share  capital  of  the  company  for  year  1917,  free 
of  tax. 

Workington  Iron  and  Steel  Company.— Interim  for  half-year 
( ndod  December  31  on  ordinarv  .shares  cf  5  per  cent,  (actual). 
less  tax,  payable  April  i.  .\  yenr  ago  the  dividend  was  4  per 
cent. 


ajfi 


tibe  JrtpestorE'  IRevlew. 


March  2,  1918. 


Name. 


Assam  Bengal       •> 

Bars! 

Bengal  &N.-W.     .. 
Bengal  N'agpur 
Bombay  I  baroda  .. 
Burtna  ,,        .. 

Delhi  Urnbalta       .. 
Earn  Indian.. 
Gt.Inriian  Penln.  .. 
Liieknow-BarelUy. . 
Md'Iras      and       S. 

Mahratia  .. 
Nizam's  Gd.  (Broad) 
,,         „      (Metre) 
Robllkund  and 

Kumaon  .. 
South  Indian 


INDIAN  RAILWAYS. 


MONTHLY    STATEMENTS. 


GROSS  TRAFFIC   FOR  WKBK. 


Week 
ending 


Amount 


Dec. 


Nov. 

S4 

1<^C. 

H 

Feb. 

16 

Dpc 

r 

feb. 

16 

,, 

16 

J, 

16 

Dec. 

I 

8 

» 

,, 

8 

B 


iS  00 
3,65,620 

11,18,000 
16,5  ,00 
4,34,871 

77.70) 
21,77,000 
23,32,200 

44.830 


!In.  or  deo. 

on  latl 
vear. 


OR08S  TRArriC  TO  DATF. 


—  3,«76 

—  1,700 

—  88,445 
4-  i,75.0(X) 
+  I,'  5,.»o 

—  36,671 

—  I0,7J0 

—  3,50,  fO 
+  1,78,000 
+       2,179 


10,90,001  +  48,788 
1. 25-301  —  2,qjS 
:,08,0u8  1+        6,828 


49,020  1  + 
6.73-248 


11,625 
6,989 


AmounI 


Rs. 
11,16,15 
5,77,' 00 

2S,h2  210 
3,68.81. 5-b 
2  82,60,000 

35,  ■ 

«7,7l,4«6 
4.60,00,000 

4,41, s^e  I 
3,57.481 

92,20,000 
11,93,681 
7,22,830 


In.  or  dec 
00  lul 

—2! 


tar. 

—    83,642 

—  I  57,<-cO 

—  5.S7,633 
4-  31,63,524 

—  7,33."<» 

—  1,03,650 
+  2,23,865 
+  l3,V7.ooo 
+  3i,75.5J9 
t        16,619 

-f-  4,46,210 
+       47.924 

—  21,688 


Dublin  United 

Feb 

?7 

Hastines  and  Dist.. 
UU  ol  Thanet 

25 

Ian. 

5 

Lancisblre  United-- 

i->h 

20 

Provmcial    , . 

Ian. 

Tf) 

Vorks.  (Wst.  Rdne.l 

Feb 

24 

t  Aijrii  I.  J  Oclooer  l. 

TRAMWAY  AND  O.MNIBUS.— HOME 

£ 
7,266 

996 

164 
2,587 
2,265 
2.363 


3,55,047  +      15,899 

62,Qt),5lf<  f     3,62,399 


♦  From  Oct.  i. 

TRAMWAY  AND  OMNIBUS. 


t  From  Jan.  i. 
-FOttblGN   AND  COLONIAL, 


Alabama  Power  . . 
An^io-Argentine  . . 
Auckland  Electric.. 
Brazilian  Traction  . 
Brisbane  Eieo.  Inv. 
British  Columbia  . . 
B.A.  Lacroze 
Burmah  Electric  .. 
Calcutta 
Carthagena  and 

Herrerias . . 
Conioba  Light 

P.  &T 

Hongkong   .. 
La  Plata 

Lima 

MaHras  RIectrio    . . 

Manila  Elcctiic... 

Mexico 

Rangoon 

Slngaiore  Electric 

Toronto 

United  of  Monte  V. 

Vera  Cruz   .. 

Winnipeg    . , 


Dec. 

1 

Feb. 

21 

( )ct. 

2fi 

Deo 

Oct. 

Dec 

5 

|an. 

Feb, 

b 

23 

]an.      I 

Dec. 

Ian     5 
,1       b 

15c 


Feb. 

AUK, 

Nov 
Ian. 
Dec. 

N.,v 
Jan. 

Nov 


£ 

120,303 

54.377 

22,308 

M7,3i2,ooo 

33,580 

tif'7,333 

38,902 

Rs.25  429 

Rs. 73.55'' 

4,011 

13.416 
12,246 
4,7" 

22519 

Rs.  37  363 
65467 
•  215,256 
5.561 

tl3,201 

»42-,556 

36,016 

46,3ro 

t86,S3t> 


£ 

+  22,793 
+  6,441 
880 

+  M  757,000 
820 
+  >30,9''7 
t-  760 

+    Rs-1,627 
Rs.1,598 


29 


■i-  1,081 

f  «5I! 

+  396 

-I-  5,211 

4-  Rs.3,7»i 

+  4,667 

-  $lo8,6ho 
-H  728 
+  •1,173 

-  «8,751 
+  2,6;5 

-  «I4.744 


f 

1,300  6>4 

421, '4« 

92,118 

M84b85coo 

328.420 

•  599,797 

269377 

134, M7 

RS4,93,862 

4,011 

122,121 

(12,246 

48, 96^ 

22,519 

iKs. 115,641 

I         547,492 

»3,193,106 

1  5,3''I 

•668,805 

»5,032,  7') 

101,101 

567,000 

8748,976 


£ 

f 

35i.0'7 

+ 

24,972 

+ 

7,832 

*■  M73I5000 

— 

2, coo 

■I- 

•60,091 

T 

340 

+ 

Rs.    144 

-fRs.15,022 

4- 

29 

_ 

1,05  ( 

+ 

«58 

— 

I  873 

¥ 

5,2" 

4- Rs. 10.215 

-t- 

rofii'i 

— 

•  197,227 

4- 

72S 

4- 

•  ",901 

+ 

•219,133 

-I- 

7,99-; 

—  •327,782 


»28  days.       »  From  Jan.  i       §  Nett.       a  From  July  i. 
FOREIGN   RAILWAYS. 


c  Two  weeKs. 


Alcoyand  Gandia . . 

Antotagasta    (Chili) 

Arauco 

Argentine  N.B. 

Bilbao  R.  and  Canta 

Bolivar 

Brazil 

Brazil  Gt.  Southern 

B.  Ayres  &    Pacific 
Do.  Central 
Do.  Gt.  South'n 
Do.       Western 

Central  Argentine.. 

C.Ur'g'ayof  Mts  V. 
Do.  Easfn  Ei. 
Do.North'nEx. 
Do.  West'n  Ex. 

Cordoba  Central  .. 

Costa  Rica  . 

Cuban  Central 

Dorada  Extension. . 

Egyptian  Delta 

Entre  Rios  . . 

French  Sante  F^  ..I 

Gt.  Soutu.  of  bpaiii 

Gt-Wesi.  ofBrazil.- 

Havana  Central     . . 

Inter,  of  C.  Amer... 

La  Gualra  and  Car. 

Leopoldina  .. 

Midland  Uruguay  . . 

Mogyana 

N.W.  of  Uruguay  .. 

Nitrate 

Paraguay  Central  . . 

Paullsta 

Peruvian  Corpn     . . 

Salvador 

State  of  Bahia  S.W. 

R.  Paulo  (Urazilian) 

Sorocabaoa.. 

Taltal 

Umtedof  Havana.. 

Wnst'n  ot  Havana. . 

Zafra  anH  Hn^iva.. 


Feb. 

Dec. 
Feb. 
Jan. 

Nov. 
Oct. 
Feb. 
Jan. 
Feb. 


Ian. 
Feb. 
Jan. 
Dec. 
Feb. 
Aug. 
Feb. 


Jan. 

Feb. 
Jan. 
Nov. 
Dec. 
Feb. 

ti'ov. 
Jan. 
Feb. 
Jan. 
Feb. 
Dec. 
Jan. 
Feb. 

Nov. 


£ 

£ 

Pa.    10,00  1 

+  Ps.  1,00 

32.115 

— 

2,665 

14500 

+ 

2,000 

7,400 

+ 

1,500 

5,105 

— 

1,099 

12,000 

-t- 

444 

M-f, 746,000 

tM66,,3;9 

.11.^.51,200 

r 

M14  900 

1  .,0,000 

-t- 

53,000 

29.4" 

-f 

S.949 

152.000 

4- 

43,000 

74,000 

■H 

34,000 

155,000 

-1- 

72,300 

19.205 

+ 

6,5  :o 

6,3" 

4- 

1,426 

3,505 

■1- 

707 

2,512 

-t- 

1. 100 

34,000 

4 

10,730 

2,257 

— 

3,397 

38,172 

•*- 

9.367 

8.30a 

— 

900 

11,867 

+ 

4,490 

l5,8co 

1- 

3,8oo 

132,000 

-^ 

29,099 

P».   27,450 

-PS57,067 

19.400 

4- 

6,300 

10,884 

+ 

2,(25 

23,424 

— 

8,199 

8,250 

— 

750 

31,118 

+ 

7,355 

10,638 

— 

?,3i)5 

M2, 2)2,000 

+  M  222,440 

»33,ooo 

+ 

♦  8,388 

34,097 

+ 

3,269 

2,9dc 

+ 

630 

M3, 506,000 

+  M  589,750 

11 

31,189,350 

+  S254,J20 

»3,4nl 

— 

,    «550 

MI14.00} 

— . 

M8,ooo 

3S.453 

-t- 

21,05s 

M2, 107,000 

+ 

M224,2o6 

31,55= 

+ 

l2,65o 

90,464 

+ 

35.654 

12,109 

+ 

5,324 

10.538 

— 

403  Hi 

£ 

Ps.  61,580 

291,250 

132,000 

281,000 

5,108 

79.736 

M  453530fO 

M427,477 

2,763,0.0 

175607 

3,53;,705 

1,5(3,000 

3,244,200 

605,917 

164,114 

105.329 

73,225 

959.180 

76,472 

5'3,»9^ 

8,300 

207,9)5 

48^,400 

900,316 

Ps.206  331 

151,000 

257,731 

23.424 

8,250 

264,153 

94,885 

M  2l669,?oo 

•159,682 

107,793 

97.670 

^30654,000 

3  7,277,620 

»,S4.4»4 

MlI4,000 

296,4^8 
M  16,98.1 

161,918 
",567,974 

263.573 

'35,49' 


„£ 
-Ps.11,570 

—  6,115 
+  23,200 
+       57,298 

1,099 

4  23,8.9 

+  M5238g7i 
4-    M5o,2o7 

—  205,000 
+    4,155 

—  281,540 

—  212, coo 

—  428  200 
4.    169,486 

4-  8966 

4-  28,050 

4-  «,8'5 

—  35.430 

—  59,'W 
*■  102,070 

—  900 
4-  44.8*6 
4-  85,400 
4-  173.429 

—  Ps. 480264 
4-  35.950 
4-        44.849 

—  8,199 

—  750 
+  77,994 
4-  ,,  7,355 
4-  M247,7I2 
4-     S13092 

^-       8,713 

1 4  12,870 
4M1426138 


4-S  836,998 
|-  *5,295 
I—  M8,ooo 
4-  111,621 
4  M1735205 
+  5'-556 
4-  349.341 
4-  68,497 
1,365 


*  Months.  I  From  Jan.  I     f  From  Ju.'v  i     c  Nett.    &  15  days,    a  10  days. 
COLONIAL  RAILWAYS. 


£ 

£ 

'  ■ 

£ 

£ 

Beira 

Oct.  •£ 

67,631 

+       9,S6o 

12 

753,845 

—      '3,927 

Canadian  Northern 

F<ib.  21 

•652,800 

+   »54,100 

• 

»26,5i7,50c 

4-    8389,100 

Canadian  Pacific   .. 

„    21 

»2,43S,ooo 

4- •210,000 

t 

•  17,407,' 00 
1 ,048,202 

4-   »954.0» 

Cr.Trk.  Main  Line 

,•    21 

156,681 

+         1,732 

t 

—      167,022 

Gr.Trk.  Western.. 

,.    21 

33.'44 

4-        2,630 

f 

212,927 

-        12,893 

Detroit  G.  H.&M. 

„    21 

",548 

+            473 

\ 

72,709 

-          4.946 

GrTkPac  Prairie  Sc 

„    21 

19.446 

+         2,191 

* 

'6j,73' 

4         51.768 

MastaonalanJ 

Sep.    • 

47,670 

—        9,630 

1 

47,670 

-          9630 

MId.of  Westn.  Aus. 

Dec     • 

9,659 

4-         2,107 

6 

43,221 

+          3.215 

New  Cape  Central.. 

Jan.  19 

2,266 

4-             361 

f 

6.448 

+             472 

Rhodesia 

Oct.    "c 

99,687 

4-      11,023 

I 

99.687 

+        11,013 

»  Month 

B.             t 

uly  I. 

t  Jan.  I. 

11  P 

rom  Oct.  7. 

METT  BARNIHQS  FOR  MOHTU.       NETT  EARIKKaS  TO  DATE 


;  Month.'   AniouDf. 


In.  or  Dec. 
on  la&t  vcar 


^1 


Amount. 


Iln.of  Dee. 
[on  last  year 


Atchison  T.  &  S.  Ft 
Atlantic  Coast  Linf- 
Baltlmore  Sc  Ohio  .. 
Canadian  Northern 
Canadian  Pacific  .. 
Chesapeake  &  Ohio 
Chicago  &  N.W.  .. 
Chicago  Burl.  &  Q. 
Chicago  G.W. 
Chicago  Mil.  &  S.P 
Chicago,  Rock  I.&P. 
Colorado  jiSoutherii 

Cuba 

Delaware  &  Hud.  , 
Denver  it  Rio  Gran. 

Erie 

Gr.Tr.  Main  Line.. 
Grand  Trunk  Wesin 
DeiroilG.  il.&Mil. 
Gt.  Northern 
Illinois  Central 
Kansas  City  Southn 
Lahigh  V-lley 
Loulsvillr.&  Nashvl 
Minn.  S.P.  (Soo)8  .. 
Miss.  K.  &  Texas  . 
Missouri  Pacific   . . 
New  York  Ceut.&H 
N.Y.  N.  Haven  4  H. 
New  YorkOnt.&  W 
Norfolk  &  Western 
Northern  Pacilic   .. 
Pennsylvania    Easi 

and  West  Lines. 
Phil,  and  Reading  . 

Reading 

St.  Louis  St  ban  F. 
Seaboard  Air  Line 
Soutnern 

Southern  PacitiO    . 
Union  Pacific 
Wabash 


Nov. 
Dec. 


Due. 
Nov. 


Dec. 
Nov. 


Dec. 
Nov. 


Dec. 
Nov. 
Dec. 
Nov. 

iJec. 

Nov. 


Dec. 

Nov. 


Dec. 
Nov. 


Dec. 

Nov. 


Dols. 

4.100,0*0 

2,036,000 
i,8si.ooo 

65,300 

3.0i',ooo 

1,22^,000 

2,711,000 

1,642,000 

294,000 

894,000 

1 .835,000 

444,00.) 

362  716 

[90.000 

572,000 

507.000 

( 8'),aoo 

<'C'5.650 

6^61,700 

1.165,000 

1,466.000 

315.00" 

628,000 

1,296000 

877,000 

972.000 

1 ,690,000 

2,939,000 

1,469,000 

111,000 

1,499,000 

1,423.000 

2,010,000 
l,c64.o<o 

577.033 
1,304,000 

594,000 
2,958,000 
4,465,000 
3,901,000 

705.000 


Dols. 
—1,062,000 
+    420,000 

—  1,165,00c 

—  758,500 

—  1,110,000 

—  182,000 

—  10.000 
— 2,O3J,O0O 

—  159,000 

—  1,718,000 
4-       57.000 

—  213  000 

i-  3'0,59t 

—  485,000 

—  420,0  0 
4-  148,01.0 

—  £128,600 

—  fi,95o 

—  f.','  o 
—1,401,000 

—  409.000 

—  19.000 

—  376.000 

—  178000 

—  294030 

—  271,000 

4-     32'|O0O 

—1,742,000 

—  6oS,ooo 

—  26000 

—  20O,O0J 
—2,122.000 

-4,493,000 
—1,199,202 
4  5.826 
4-  353,000 
4-  261,000 
+  241,000 
—1,038,000 

—  668,000 

—  423,000 


Pols 

44,186,000 

12,026,000 

30,588,000 

3.3'5.lO!> 

46  5i6,oto 

12,861,000 

17,015,000 

31,281,000 

3,488,000 

22,026,000 

16,461,000 

5  320000 

1,1)6,273 

J.6S2.oc«, 

7,152,000 

10,538.000 

f ',9 '7.300 

£23.200 

i67,7«> 

22,9*^7.000 

17,538,000 

4.495,000 

9,240,000 

16,949,000 

K,974,000 

7.393.000 

9425.000 

45,049.000 

19,597.000 

2,228.000 

19,871.000 

i  26,009,000 

88,450,000 
'4,877.7  o 
I  9,1)06  oco 
i  8,569,000 
6.693,000 
14,753.000 

55.577,000 
39,694,000 


Dolt. 

—  i,«es.ooo 

4-      Co7.00<J 

-3,425,00* 

—  2.961,001 

—  3.910000 

—  t,444.00» 

—  },634.<»0 

—  3,956.000 

99^,000 
9,338,000 

—  2,534,000 
4.  370,000 
+      I53,'95 

—  1.615,000 

—  1,539.003 

—  5,277,000 

—  4627,900 

—  £139050 

—  £91.900 

—  6,179.000 

4-  2,'90.  >00 

+    569,000 

—  2,410,000 

—  836,000 
-3,351,100 
4-  2.447,000 
4.  1,920,000 

—  '3y5.ooo 
— 1,665,000 

—  97,000 

—  3,590,000 
— 1,278,000 

—  20891,000 

—  6,626,0x1 
4-  211,860 
+  1,093.000 
4-  41.000 
4-  3,ag8,ooo 

4-  7.2JJiOO» 

1,312,000 


I 


814,000    —      42I,OCO 


S  Includes  Wisconsin  Central.    •  Gross  earnings,    t  Surolus.    t  Deficit. 


NOTICE. 


TRAFFORD  PARK  GOLD  STORAGE.  LTD. 

The  LIST  OF  APPLICATIONS  will  be  CLOSED  on  MONDAY 
next.  The  Debentures  being  already  considerably  over-applied 
for,  no  further  applications  for  Debentures  can  be  considered, 
excepting  from  applicants  already  interested  in  Traflord  Park 
Estates,    Ltd. 


tlbe  3nvc0tor0'^  IReview. 
SCALE  OF  CHARGES  FOR  ADVERTISEMENTS. 


o 

s 


PROSPECTUSES. 

Full  Page *25 

lender  one  page,   at  per  inch.  1 

single  column 
Special  positions  by  arrangement. 
REPORTS    OF    COMPANY    MEETINGS. 
Minimum     ...  ...       •     •.•        **      O 

Per  Column...  ...  •.•  6    11 

COMPANIES'     BALANCE-SHEETS. 
Whole  Page  .-.  ,..£15    15 

Half  Page    ...  ...  •.  8       2 

Quarter  Page  ...  •••  *       2 

dividend;  NOTICES,    AC. 

Per  Inch «0   1 2     6 

BANKS    AND    INSURANCE    COMPANIES. 
I'ront  Page  (cover)  facing  Money 

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Discount  for  Series.— 5%  for  Thirteen,  10%  for  Twenty-six, 
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•  INVESTORS'   REVIEW,"    Norfolk   House,  Norkolk   Street,  STitAxn 
London,  W.C. 


o 
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Owing  to  the  restrictions  placed 
upon  paper  supplies  we  cannot 
provide  newsagents  with  copies  for 
chance  sales.  Would  regular  readers  of 
the  "  Investors'  Review,"  therefore, 
kindly  place  an  order  with  their  local 
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publisher? 


Printed  by  the  St.  Ci.fmint8  Prkss,  Ltd.,  Portugal  Street,  Kingsway,  London,  W.C,  for  the  Proprietor  of  The  Investors'  Review,  and  Publishad 
by  T«B  PEofRiiTOR,  Norfolk  House,  Norfolk  Street,  Strand,  W.C  i.— March  t,  tgtl.  [N  «I4" 


tTbc 


3nve6toc6'  IRevtew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


VoI.XLI. -No  1.053  J 

NEW  BERIKS. 


rR«jtstered  aa  a"! 
L    Newspaper.    J 


SATUklMY,  MARCH  9.   1018. 


[Price  6(1. 


CONTENTS. 


Passing  Events: — New  Vote  of  Credit  —  National  War  Bond 
Sales  —  Revenue  —  Navy  Estimates  —  Labour  Problem 
—  Chamber  of  Shipping  —  Edgar  Crammoud  on  National 
Debt  —  Bank  of  British  North  America  —  Dominion 
Bank  —  Rand  Mines  —  Ivanhoe  Gold  —  Spiers  and  Pond 
Reconstruction  —  Richardsons  Westgarth  —  Premier 
Diamond  —  Peace  Campaign  (pp.  239-42). 

Leading  Articles: — The  Russian  "Peace"  That  Opens  Hell 
for  the  Russian  People  —  Prudential  Assurance  Co.  — 
Courtaulds'  Handsome  Bonus  —  By-the-Way  War  Notes 
(pp.  242-6). 

Insurance  News  : — Scottish  Widows'  Fund  —  Britannic  —  Sun 
Life  —  Refuge  —  Legal  and  General  Increased  Powers  — 
Pearl  (pp.  246-7). 

Money  and  Credit  Notes : — Placid  Conditions  in  Spite  of 
Tanks  —  Bank  Return  —  New  Series  of  War  Bonds  — 
Committee  on  Banking  Amalgamations  —  Italian  War  Loan 
Success  —  Eighth  German  Loan  —  Foreign  Exchange 
Movements  — 'Silver  (pp.  250-2). 


Mining  News : — Natal  Navigation  Collieries  —  Rhodesian 
Mineral  Output  —  West  African  Gold  Output  —  Sons  of 
Gwalia  —  North  Broken  Hill  —  Geevor  Tin  —  HoUinger 
Consolidated  (p.  255), 

American  Business  Notes  : — Executive  Powers  of  the  President 
(p.  256). 


Company    Meetings : — Prudential 
Serdang  Rubber  (pp.  257-63). 


Assurance    Co, 


United 


What    Balance    Sheets    Tell :  — William    Gossage   and    Sons 
Arnold  J.  Van'Den  Bergh  (p.  264). 

Company  Results  in  Brief  (p.  247). 

Letters  to  the  Editor  (p.  249). 

Answers  to  Cot  respondents  (p.  249). 

The  Week's  Stock  Markets  (pp.  252-3). 

London  Produce  Markets  (p.  254). 

The  Week  in  Mines  (pp.  254-5). 

Dividends  Announced  (pp.  255-6), 

Traffic  Returns  (p.  264). 


I 


BANK  OF  NEW  SOUTH  WALES 

^^  Eslablishtd  1117. 

Paid  up  Capital £3,904,860 

Reserve  Fund     2,875,000 

Reserve    Liability    of 

Proprietors 3,904.,860 

g1 0,684,720 

Head  Office  :  SYDNET,  NEW  SOUTH  WALES. 

London  Directors : 

Sir  Frederick  Green,  Chairman, 

H.  L.  M.Tritton,  Esq.  Walter  S.  M.  Burns,  Esq. 

David  George,  Manager.  J.  S.  Campbell,  Secretary. 

Halkerstone  Mkldpux,  David  Geddie, 

Aisiitant  Manager.  Accmniani. 

The  Bank  has  331  Branches  and  Agendas  in  the  Australian  States, 
New  Zealand,  Fiji,  Papua  (Nhw  Guinea),  and  London,  and  Agents  and 
Correspondents  all  over  the  World,  on  whom  the  London  Office  grants 
Circular  Leiters  of  Credit  and  Circular  Notes.  Also  issues  Drafts  on 
demand.  Makes  Mail  and  Cable  Transfers.  Neeotiates  and  Collects 
Bills  of  Exchange.  Receives  Deposits  for  Fixed  Periods  on  terms 
which  may  be  known  on  application,  and  transacts  every  description  of 
Australian  Banking  business. 

London  Offloe:  29,  THREADNEEDIjB  STRBBT,  B.C.  2. 


BANK    OF    NEW   ZEALAND. 

{Incorporated  July  2gth,  i86i.) 

1BANKFES  TO  THE  NEW  ZEALAND  GOVERNMENT, 
London  Office:  i,  Queen  Victoria  Street,  London,  E.C.4. 
AUTHORISED  CAPITAL        £5,500,000 
SUBSCRIBED  CAPITAL. 
Four  per  Cent.  Guaranteed  Stock         £529,988 
I.  D  ,.  ^'^1"'="'^^  3^"^^  issued  to  New  Zealand  Government        ! .       500,000 
B     freterence  Shares  issued  to  New  Zealand  Government        ..      350,000 
Ordinary  Shares I.»ooor^o 

(2.779.988 

Reserve  Fund  and  Undivided  Profits .i'2,246,595 

Negotiates  and  collects  Bills  of  Exchange, 

Grants  drafts  on  its  Offices  in  New  Zealand,  Australia,  Fiji  and  Samoa,    Re- 
mittances made  by  telegraphic  transfer. 

ALEXANDER  KAY.  Manager. 

The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  itSo. 

■                                   Authorised  and  Issued  Capital,  £6,000,000, 
Paid-up  Capital,  £2  000,000 ;  Reserve  Fund,  £2,000,000 ;  together   £4,00^000 
Reserve  Liability  of  Proprietors ,. .,.. 4,000,000 
Total  Capital  and  Reserves £8^,000 
HEAD  OFFICK  -        -        -        71,  OORNHILL,  LONDON,   E.n.  3. 
DkAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Ausiraiiai, 
States  and  Domini->n  of  Ne-v  Zealand. 

TELEGRAPHIC  REMHTANCES  are  also  made. 
H^H         ^''''  *^  "^^  purchased  or  s^-nt  for  Collection 
l^fe       "^  POSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 

I: 


THE  BANK  OF  TAIWM,  LTD. 

Incorporated  by  the  Special  Charter  of  the  Imperial 
Japanese  Government,  1899. 


HEAD  OFFICE 


-     TAIPEH,   FORMOSA. 


BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swaiow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1S62, 

Authorised  Capital  £4,000  000 

Paid-up  Capital 1,800,000 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendoza,  Concordia,  Bahia 
Blanca,  Cordoba.  Tucura^n,  Parang.  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires,,  Boca  (Buenos  Aires),  Calle  Sania  F6  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires)  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agtncv),  Saiio 
(Agency).  BRAZIL.  —  Rio  de  Janeiro,  Sao  Paulo,  Santos,  Per- 
nambuco,  Fara,  Bahia,  Victoria  Curityba,  Manaos  (Agency),  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  Hal6vy).  Agency  iu 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.     Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  a. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1S80. 


Snbsoribed  Capital        Ten  48,000,000 

Capital  Paid  Up Yen  36,000,000 

Reserve  Fund         ..        ..  ..    Yen  22,100,000 


Bombay. 

Calcutta. 

Changchun. 

Dairen  (Dalnv). 

Fengtien  (Mukden). 

Hankow, 

Harbin, 


Hiad  Office :  YOKOHAMA. 
Branches  and  Agencies  at 


Honolulu. 

Hong  Kong. 

Kobe. 

Los  Angeles. 

Lyons. 

Nagasaki. 

Newchang. 


New  York. 

Osaka. 

Peking. 

Rang  on. 

San  Francisco. 

Seattle. 

Shanghai, 


Singapoie. 
Sydney, 
Tientsin , 
Tokyo. 
Tsi'  anf u. 
Tsingtau. 


The  Bank  buys  and  receives  lor  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Ti  ansfers  and  Letters  of  Credit  on  above  places  and  elsewhere 
and  transacts  General  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtainc  1  on  applicatieo. 
London  Office:   7,  BISHOPSGATE,  E.C. 2, 

K.  TATSUMI,  Manager. 


238 


Zbc  Jnvestots'  IRevlew. 


March  9,    1918. 


LONDON  COUNTY  &  WESTMINSTER  BANK  LIMITED. 

ESTABLISHED    IN     1836. 

AUTHORISED  CAPITAL  £17,000,000,  in  850,000  Shares  of  £20  each. 

Reserve  exceeds        •        -        -        £4,700,000. 
Chairman:  WALTER  LEAF.  Esq.  Deputy  Chairman:    Sir  MONTAGUE  TURNER. 

HEAD    OFFICE  :     41,    LOTHBURY,    E.G.  2. 


Joint  General  Managers:     F.  J.  BARTHORPE. 


J.  W.  BUCKHURST. 


Foreign  Branch  Office :    82,  Cornhill,  E.G.  3. 

The  Bank  is  represented  by  Branches  or  Agents  in  all  the  Principal  Cities  and 
Towns  of  the  United  Kingdom  and  has  Correspondents  throughout  the  World. 

Spanish  Branches  :— Barcelona :  Paseo  de  Gracia  8  &  10.   Madrid  :    Calle  de  Alcala  43. 

Affiliated  in  Ireland  :    Ulster  Bank  Limited. 

Affiliated  in  France  :    London  County  and  Westminster  Bank  (Paris)  Limited. 

Paris:  22,  Place  Vendome.       Bordeauv:    22/2 1,  Gours  de  I'Intendance. 

EVERY  DESCRIPTION  OF  BRITISH  AND  FOREIGN  BANKING  BUSINESS  TRANSACTED 

EXECUTOR  >  AND  TRUSTEE  DUTIES  UNDERTAKEN. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office  i  15,  Gracechurch  Street,  London,  E.C.  3. 


Capital  Authorised 
Capital  Issued 
Capital  Paid  Up  ... 
Reserve  Fund 


£1,500,000 

1,125,000 

562,500 

600,000 


Branches  I 

INDIA.   BURMAH,   CEYLON.    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS,    MAURITIUS. 

The  Bank  huys  and  sells  Bills  of   Exchange,  i<t8ue8  Letters  of  Credit  and 
Circular  Notes,  and  transacts  iiat  iting  and  agency  business   in  connection  with 

the  f  ast.  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  ai  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  •wrrant  aooounta  interest  is  allowed  at  1  percent,  per  annum  on 

daily  balancL-s. 


ENGLISH,    SCOTTISH,     AND    AUSTRALIAN 
BANK,  LIMITED. 

HAa^d  Omo«— 3B,  X^omtoci.vd  S*>.««t«  B.C.  ■• 

Subscribed  Cnpital £^^f>7^,^7i    0    o 

Paid-np  Capital i"9%^yj  lO    o 

Further  Liability  01  Proprietors     ..        ..  539.437  to    o 

Reserve  Fund 500,000    0    0 

LETTERS  OF  CREDIT  and  DRAFTS  on  the  Branches  and  Agencies  of 
the  hank  in  Australia  can  be  obtained  at  the  Head  Ofhce,  or  throt.fcb  the  Agenu 
of  the  BHiik,  in  (he  chiet  Provincial  (owns  ihrodjjhoui  the  United  Kingdom. 
REMITTANCES  made  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOIIATED  or  forwrar.led  for  COLLECTION. 
BANKING  and  EXCHANGE  Business  of  erery  description  transaoted  with 
Aasiralia. 

E.  M.  I>NIOV   Manager. 


THE   BANK  OF  ADELAIDE. 

(Incorporated  by  Act  of  Pailiament.  186^.) 
teUMriMd  Capital         .    £1.000,000.  SubtcrilMd  fopttal    •    •    CttS,00a 

Paid-up  Capital        £500000 

Reseive  Fund  5Ao,foo 

£1,040,000 

Uncalled  Capital 125,000 

Reserve  Liability  of  Shareholdors      625,010 

London  Office— II,  Leadcnhall  Street,  E.C.  3. 

BILLS  on  Australasia  purt  based  or  Colleced. 

DRAFTS  issued  and   REWITTANCES  cabled. 

DEPOSITS  received  for  fixed  periods  at  rates  to  be  ascertain  don  application, 

PERCY  ARNOLD  Manager. 

THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

HMd  Oeic— r>  Old  Broad  Stre«t.  E.C. 

Subscribed  Capital         jj,  2*7  6  7^7 

PaidupCapiul '669  685 

Reserve  Fund  and  UndivHed  Protits         ,,  375  630 

Reserve  Liability  of  Proprietors       ..  .,  606  d62 

RRM\  FTANCES  made  by  CABLE. 
DRAFTS,   LETTERS  Of 

Kranclies  and  Agents. 
BILLS  on  Australasia  NEGOTIATED  or  sent  lor  oolleclioo, 
Dai  CSiTS  R&CEIVKU  for  peiiods  and  at  rates  wliieh  miv  lie  •scert.lDiNl 

on   application,  and   banking    Uusinass    of    everv  deaenptioo   cooiluoted 


10 

o 
1 1 
10 


CREDIT  and  CIRCULAR  NOTES  issued  upon 


with  .^  istralii . 


ROYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  1727. 

PAID-UP  CAPITAL £2,0OOCO} 

REST  AND  UMDIV.DBD  PROFITS  U14  9  S 

DBPOslTS 86,177,866 

Head    Office:    ST.    ANDREW   SQUARE,  EUINUUkQH. 
Cashier  an  1  General  Manager,  A.  K.  Wright.        Sec  eiary,  J.  B.  Aoshxad. 

London    Offlce:    3,    BISHCSGATE.  E.C   2. 
WiLLiAU  Wallace,  Manager.  Alfx.  I'ick,  Deputy-Manager. 

Glasgow   Ofnce:     EXCHANGE  SQUARE. 
A.  Dknnistoun,  Agent.  Thomas  Lillie,  Sub-Agent. 

Ifc7  Branches  throuiOiout  Scotland. 
BanKinf;  Busine^^s  of  every  description  'ran>acted.  Accounts  opened  and  Agency 
h'  siness  underia>>en  for  Foreign  *nd  Colonial  Banks  and  oth  r  fina- cial  estab- 
lishments. Drafts,  Circular  .Notes,  and  l.ttter-.  o  Credit  issued  —  available 
tiro  ghoui  the  world.  Cable  traxsters  are  also  m^de.  D.-po.its  receivedai 
intfre^i  repayable  at  nail  or  at  notice.    Correspondence  invited. 


THE     WESTERN      AUSTRALIAN     BANK. 

Established  1841. 
Pald-np  Capital    ..    fiaso,000   0    0     95.000  Shares  of  ^loeaoh. 
BeserTe  Fund  ..    ..  £700,000    0    0  I  Reserva  Prollcs    ..  4it,0ta 
Reservaa  luiaolIUT  of  Shareholders  £250  000. 

IMiff.,  Issued  KennttHTtcef;  cabled.  Bills  negotrated  or  collected.  Deposits 
received  tor  fiv.-d  p.!r'<  d  :  at  rates  to  oe  asrertaineo  on  application  an(l  all 
Lanlsing  and  exchdnfce  bi^ine^s  roiineciea  with  ^ves'^^n  Australia  rondurted 
tbroueb  the  Londnn  Agents  The  Bank  et  Adelaide.  II.  Leadanhall  It..  B.C.B. 


^be  3nv>e0tors'  IRcview. 


SCALE  OF  CHARGES  FOR  ADVERTISEMENTS. 


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"INVESTORS'   REVIEW,"   Noofolk   Housk,  Noa»OLK   SmBET,  Strahd 

LONOOM,  W.C 


Ube 


'  IReview, 


II 


Vol.  XU.-No.  1,053. 

Raw  Serie>. 


SATURDAY,  MARCH  9,  1918 


('1fXrp.V.')  Price  6d. 


PUBLISHER'S    NOTICES 

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on  the  following  terms  : — 

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Telephone  No, :  Telegraphic  Address  : 

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ANSWERS    TO   QUERIES. 

One  Reply   to   One  Question  —  One   Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  Tbe  questions  should  be  numbered 
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exhaustion  will  also  be  given  there, 

Telegpame  advising  about  new  securities  cost  Half-K* 
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taken. 

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One  Guinea,  each  list  different. 


Passing   Events. 

In  submitting  the  new  Vote  of  Credit  for 
;^6oo, 000,000,  Mr.  Bonar  Law  gave  an  interesting  re- 
view of  the  national  expenditure,  and  some  of  the  more 
important  figures  may  be  usefully  grouped  together  for 
reference  : — 

Average  daily  expenditure —  £ 

April  I  to  December  i 6,6S6,ooo 

December  i  to  February  9 6, 107,000 

April  I  to  February  9 6,557,000 

New  vote  based  on  e-timate  of  ;f6, 750,000. 
Daily  excess  over  estimate — 

Army,  Navy  and  munitions    664,000 

Loans  to  Allies  and  Dominions    239,000 

Miscellaneous  items 242.000 

Total  excess  for  period  under  review  . .      36i,oco,ooo 
Recoverable  expenditure — 

Loans  to  Allies 75,250,000 

Advances  to  Dominions 39,750.000 

Purchases  of  foodstuflfs,  &c b6,ooo,ooo 

Munitions  for  Allies    ,    5,750.000 

Total  , 206,750,000 

Total  Loans — 

To  Alllies  ■. 1,264,000,000 

To  Dominions 180,000,000 

Increase  during  the  year 460,000,000 

National  Debt — 

Estimate  for  end  of  year    5,990,000,000 

Loans  to  Allies  and  Dominions    1,060,000,000 

Of  course,  the  Army  is  mainly  responsible  for  the  in- 
crease in  the  total  expenditure,  the  advance  over  the 
corresponding  period  being  about  ^£,"220,000,000.  Sup- 
phcs  absorbed  between  50  and  60  millions  more,  and 
Mr.  Law  estimated  that  the  subsidised  loaf  will  cost 
the  Exchequer  ;£^  17,000,000.  It  is  a  generous  dole, 
but  are  we  getting  any  sort  of  value  for  it  ? 

In  the  week  ended  March  2  there  were  11,756  appli- 
cations for  the  Bank  of  England  issue  of  National  War 
Bonds.  This  was  744  less  than  in  the  previous  week, 
and  the  decline  in  the  amount  applied  for  was 
;^2,078,542,  making  the  receipts  of  the  week  from  this 
source  only  ;^I9, 193,552.  This  brings  up  the  total 
proceeds  of  the  sales  of  these  bonds  to  ;^4io, 389,365, 
and  we  hope  it  will  soon  be  made  public  how  much  of 
this  is  new  money.  The  Post  Office  returns  are 
always  a  week  behind  those  of  the  Bank  of  England. 
For  the  week  ended  February  23  the  applications  for 
Post  Office  bonds  numbered  25,400,  a  decrease  of  5,600, 
and   the   amount  applied    for   was  ;^i42,ooo   down   at 


;^6o7,ooo,  or  an  average  of  about  ;^26  per  applicant, 
'ihe  total  applications  to  date  have  accordingly  been 
778,700,  representing  ^19,040,000  in  all,  or  an  average 
of  less  than  ;^"24  los.  per  applicant.  Of  War  Savings 
Certificates  2,807,092  were  disposed  of  in  the  same 
week  ended  Saturday,  February  23,  bringing  up  the 
total  of  these  certificates  in  the  hands  of  the  public  to 
157,077,398.  As  we  do  not  know  how  much  of  the 
Bank  of  England  War  Bond  issue  is  genuine  new 
money,  it  is  useless  wasting  space  any  more  to  put  the 
totals  together  and  add  them  up.  We  may,  however, 
quote  the  Chancellor  of  the  Exchequer's  answer  to  a 
question  in  the  House — partly  because  some  news- 
papers gave  the  figures  as  pounds.  Up  to  February  28, 
he  said,  164,600,000  certificates  had  been  sold,  and  of 
these  6,146,000  had  been  redeemed,  including  about 
750,000  handed  in  as  subscription  to  other  forms  of 
Government  debt.  The  money  value  of  the  total  num- 
ber of  certificates  sold  was  ;^i 27,565,000,  and  the 
certificates  repaid  would  include  simple  interest  at  5 
per  cent,  on  the  fifteen-and-sixpences  originally  paid  in. 

Revenue  last  week  amounted  to  £,'22,883,970,  and 
expenditure  on  supply  services  alone  absorbed 
;£J'62,484,i40,  or  at  the  rate  of  ;^8,929, 164  per  diem. 
Adding  ;^i,856,i4i  paid  as  interest  on  war  debt  and 
;^2o,366  of  miscellaneous  outgoings,  we  get 
;^64,36o,656  as  the  total  actual  disbursements  of  the 
week,  or  about  ;^9, 194,000  per  diem.  The  actual 
week's  revenue  was  therefore  considerably  less  than 
equivalent  to  three  days'  outgoings;  consequently  the 
dependence  upon  credit  instruments  was  emphatic 
enough.  The  Treasury  received  ;^  19,050,000  from  the 
sales  of  War  Bonds,  besides  ;^i, 800,000  from  Savings 
Certificates  and  ;^i 2,592,000  from  other  war  debt. 
Even  so,  ;£^87, 326,000  of  supply  Treasury  bills  had  to 
be  issued,  and  the  Government  had  to  borrow 
_^ig, 350,000  on  temporary  advances,  bringing  up  the 
gross  overturn  of  the  week  in  cash  and  credit  to 
;^i 63, 102,000.  Huge  as  that  amount  was,  it  failed 
to  meet  the  gross  expenditure  by  ;^i, 716,939,  which 
had  to  be  drawn  from  the  Exchequer  balances.  To  be 
sure  ;^i  1,091,000  of  due  Treasurv  bills  were  redeemed, 
the  total  payings  off  being  ;^98, 615,000  as  against 
;^87,326,ooo  renewed.  But  the  total  of  Treasury  bills 
now  outstanding  is  still  ;^i, 040, 425,000,  and  the  re- 
duction in  this  formidable  aggregate  effected  in  the 
past  three  weeks  has  been  less  than\^25,ooo,ooo.  not- 


24* 


^be  Snveators'  TReview. 


March  9,  191 8. 


withstanding  all  the  strenuousness  of  our  borrowing. 
That  may,  perhaps,  be  accepted  as  a  good  augury  from 
one  point  of  view,  because  it  leads  to  the  inference  that 
less  of  the  National  War  Bond  issue  has  been  effected 
through  the  tender  of  Treasury  bills  in  payment  of  sub- 
scriptions than  was  to  be  feared.  But  the  new  expen- 
diture continues  to  be  enormous.  The  Exchequer 
balances  are  now  down  to  ;^i4,248,589,  which  com- 
pares with  ;^26,895,6oo  a  year  back.  Adding  last 
week's  receipts  from  taxes  and  monopolies,  the  aggre- 
gate real  income  for  the  fiscal  year  to  date  is  now 
brought  up  to  ;<{^6o9, 742,000.  Of  last  week's  receipts, 
;^i9,i40,ooo  came  from  income-tax  and  excess  profits 
duty.  The  income-tax,  including  super-tax,  gave 
;^i 5,477,000,  but  excess  profits  duty,  including  muni- 
tions levy,  only  ;<f3, 663,000.  In  the  aggregate,  how- 
ever, these  two  fountains  of  direct  revenue  have  run 
each  other  very  close,  the  yield  of  property  and  income- 
tax,  plus  super-tax,  for  the  year  to  last  Saturday  having 
been  ;^iq7,45,S,ooo,  while  the  yield  of  the  excess  profits 
duty,  including  munitions  levy,  has  been  ;^i9i,674,ooo. 
That  is  to  say,  out  of  a  total  income  of  ;£'6o9.742,ood, 
no  less  than  ;^389, 129,000  has  been  provided  by  these 
several  forms  of  direct  taxation. 


Many  interesting  statements  were  made  by  Sir  Eric 
Geddes  in  his  speech  on  the  Navy  estimates  last  Tues- 
day evening  in  the  House  of  Commons.  With  most 
of  them  we  have  little  immediate  concern,  but  in  spite 
of  Sir  Eric's  reiterated  assurances  that  we  are  more 
than  holding  our  own  in  the  submarine  test  of  savagery 
and  brutality,  one  cannot  but  be  anxious  about  the 
future  of  our  foreign  commerce,  and,  beyond  all,  the 
immediate  future  of  our  food  sunplies.  How  much 
tonnage  we  have  lost  bv  the  German  sea  assassins  is 
never  revealed,  and  Mr.  Asquith  not  unreasonablv 
begged  for  more  information  on  some  noints  than  .Sir 
Eric  gave  in  his  long  and  verv  interesting  soeerh.  We 
might  at  least  be  allowed  to  know  approxlmatelv  how 
we  stand  in  the  matter  of  rpnlacement  of  the  lost 
tonnage,  and  if  we  had  the  entire  statistics,  in  propor- 
tion as  Ihev  proved  disquiet-ng  might  be  their  rousing 
moral  influence  on  the  working  classes. 


About  these  working  classes  Sir  Eric's  language 
was  far  from  reassuring,  although  he  gave  some  indi- 
cations that  things  were  on  the  mend.  "  There  is  no 
lack  of  material  in  yards  to-day,"  he  said.  "  There 
are  more  men  and  an  increasing  number  of  men  in 
the  yards,  but  whereas  the  average  monthly  output 
of  merchant  shipbuilding  in  the  fourth  quarter  of 
1917  was  roughly  140,000  tons,  it  only  reached  58,000 
tons  in  January  last."  The  bad  weather  excuse  does 
not  carry  the  nation  far  in  the  direction  of  consolation, 
nor  yet  the  assurance  that  the  output  in  February  may 
be  nearly  twice  that  of  January.  Even  so  the  output 
would  only  be  "  about  two-thirds  of  what  the  same 
yards  and  fewer  men  have  done  in  a  month."  Men, 
indeed,  are  at  the  bottom  of  the  mischief,  and  we  are 
sorrv  to  say  that  nearly  everything  we  hear  about  the 
soirit  of  the  men  emploved  in  Government  work  of  any 
kind  is  disagreeable.  They  do  not  realise  when  they 
go  slow  in  obedience  to  orders  that  they  are  acting 
treacherously  towards  their  fellow  citizens  or.  making 
an  economic  blunder  bound  to  be  disastrous  to  them- 
selves. It  is,  nevertheless,  true  that  heady,  shallow 
wirepullers  of  the  noisier  type  seem  to  have  surreeded 
in  persuading  the  working  man  that  he  is  contributing 
to  the  well-being  of  his  fellow-workmen  when  he  gives 
as  little  work  for  his  money  as  he  may.  "  If  I  do 
less  than  I  am  able  to,"  he  has  been  taught  to  think, 
"  I  leave  more  for  the  other  chap."  That  notion  is 
not  merely  false  in  its  political  economy ;  it  is  dis- 
honest. 


Added  to  this  mistaken  notion  is  the  feeling  of 
antagonism  towards  employers  which  prompts  the 
working  man  in  a  sort  of  wild  spirit  of  revenge,  to 
strive  always  to  exact  much,  and  give  little  in  return. 
We  have  been  told,  for  instance,  that  a  capable  brick- 


layer, working  conscientiously,  can  easily  lay  a  thou- 
sand bricks  a  day  ;  but  that  the  workmen  employed  on 
Government  buildings  think  they  are  doing  their 
patriotic  duty  when  they  lay  from  250  to  300  bricks 
a  day,  because  more  men  are  then  needed  for  the  job. 
It  is  this  spirit  and  these  habits  which  are  interfering 
with  the  output  of  shipping,  and  the  bulk  of  the  men 
are  so  prejudiced  and  ignorant  that  they  seem  willing 
rather  to  let  the  whole  nation  starve  than  to  stand  up 
and  loyally  do  their  best  as  their  sons  and  brothers  are 
doing  at  the  front  and  on  the  ocean.  To  hang  back 
and  sulk  is  not  to  play  the  game. 

How  is  this  lamentable  state  of  affairs  to  be  im- 
proved? Mere  higher  wages  will  not  improve  it,  at 
any  rate  has  not  done  it  hitherto,  because  the  wages 
are  given  without  equivalent.  Bonuses  of  whatever 
magnitude  never  have  the  effect  of  increasing  the 
calculated  sluggishness  of  the  labourer,  because  they 
are  at  bottom  only  "  tips,"  a  form  of  charitable  dole. 
Pending  a  more  thorough  revolution  in  the  relations 
between  capital  and  laljour,  we  believe  that  the  best 
stimulus  of  all  would  be  found  in  payment  by  results. 
Make  the  scale  of  wages  high,  but  pay  them  only  in 
strict  equivalence  to  the  work  done.  Is  it  impossible 
for  the  Government  to  try  an  experiment  by  asking 
the  representatives  of  men  in  a  shipyard  to  combme 
to  give  an  estimate  of  what  they  will  build  a  ship  for, 
all  materials  supplied.  If  a  contract  of  this  kind  could 
be  made  with  the  squad  told  off  to  construct  a  particu- 
lar vessel,  so  that  they  would  be  given  a  lumo  sum  m 
payment  on  its  completion,  and,  in  addition,  a 
graduated  bonus  determined  by  the  time  saved  upon 
the  contract  limit  for  delivery,  we  are  sure  that  if 
the  men  felt  that  their  earnings  would  be  m  propor- 
tion to  their  assiduitv,  slackness,  "  restings,"  off-days, 
all  the  dodges  bv  which  the  work  is  delayed  and  ill- 
performed,  would  vanish.  Cannot  employers,  capi- 
talists, do  nothing  in  this  direction? 

Some  vigorous  speaking  was  heard  at  the  annual 
meeting  of  the  Chamber  of  Shipping  held  in  the  Skin- 
ners' Hall,  Cannon  Street,  this  week.  The  retiring 
chairman,  Sir  William  Raeburn,  flatly  asserted  that 
"  the  two  elements  responsible  for  the  dangerously 
inadequate  production  of  new  ships  were  Government 
and  the  workers."  We  are  more  and  more  of  that 
opinion  ourselves,  for  the  Government  appears  to  have 
mismanaged  the  men  in  the  flabbiest  manner  possible, 
alternately  blazing  up  with  threats  and  scoldings,  and 
flinging  doles  at  their  heads  to  try  and  allay  the  dis- 
content, the  result  being  demoralisation  amongst  the 
workers  an^  the  spread  of  a  foolish  notion  that  it 
does  not  matter  how  they  work,  they  have  afTairs  in 
their  own  hands  and  can  do  as  they  like.  Lord  Inch- 
cape,  who  succeeds  Sir  William  as  President,  also 
had  something  forcible  to  say,  and  his  description 
of  the  idle  yards  at  the  week-end  on  the  Clyde  is 
something  to  be  remembered.  But  to  us  his  most 
impressive  utterance  had  reference  to  the  giving  of 
information  about  our  losses,  and  here  also  we  have 
gradually  come  round  to  the  opinion  so  long  advo- 
cated in  the  Harmsworth  Press  that  more  information 
will  have  to  be  given  without  regard  to  Germany,  in 
order,  if  possible,  to  rouse  the  patriotic  sentiments  of 
the  workers  to  a  comprehension  of  the  dangerous  posi- 
tion into  which  the  country  is  drifting.  "  We  are 
told  every  Thursday,"  said  Lord  Inchcape,  "  that  so 
many  vessels  of  under  1,600  tons  and  so  many  vessels 
of  over  1,600  tons  have  been  sent  to  the  bottom  by 
enemy  action.  This  conveys  nothing  to  the  public. 
One  vessel  of  17,000  tons  might  be  destroyed,  and 
she  is  only  regarded  as  one  ship  of  over  1,600  tons." 
Would  it  not  be  possible  to  give  the  essential  facts 
about  tonnage  and  about  the  nature  of  the  cargoes 
sunk,  say,  once  a  month,  without  supplying  any  clue 
to  the  locality  where  the  loss  occurred,  or  otherwise 
revealing  facts  that  might  be  useful  to  the  German 
Admiralty?  It  is  for  the  Allies  to  say.  Another 
speaker.  Sir  John  Ellerman,  whom  we  remember  long 


March  9,   igi8. 


Zhc  5nv>e8tor8'  IRevtevv, 


241 


I 


I 
I 


ago  as  a  very  modest  figure  indeed  in  financial  and 
shipping  affairs  in  the  City,  had  also  something  to  say 
about  our  shipping  output.  He  stated  that  "up  to 
the  end  of  February,  or  for  a  period  of  thirteen 
months,  >thc  whole  resources  of  this  country  had  been 
devoted  to  new  construction,  and  the  result  had  been 
the  building  of  steamers  of  86,000  tons,  with  a 
carrying  capacity  of  130,000  tons.  During  that  same 
period  private  enterprise  had  amounted  to  over 
1,300,000  tons,  and  a  dead-weight  carrying  capacity 
of  1,500,000  tons."  The  language  is  foggy,  but  we 
infer  that  the  smaller  totals  refer  to  State-controlled 
yards  and  the  larger  to  yards  not  interfered  with.  "  Last 
February,"  Sir  John  went  on,  "  only  five  steamers 
of  very  small  tonnage  had  been  put  forward."  That, 
we  presume,  means  had  been  put  into  the  water  ready 
for  use.  This  slackness  has  got  to  end,  else  we  shall 
presently  see,  among  other  consequences  of  our  indiffer- 
ence, forcible  occupation  of  land  by  people  spurred  on 
to  such  revolutionary  conduct  by  the  imminence  of 
starvation. 


Mr.  Edgar  Crammond  continues  his  series  of  interest- 
ing lectures  at  the  Royal  Society  of  Arts,  and  last  time 
his  subject  was  "The  Real  Cost  of  the  War   and    the 
Problem  of  Reconstruction."     He  estimated  that  at  the 
end  of  this  month  the  gross  amount  of  the   National 
Debt  would  be  approximately  6,000  millions,  but  from 
this  there  were  legitimate  deductions  (loans   to  Allies 
and  the  like),  which  would  reduce  the  nett  amount  to 
just  over  4,000  millions.     On  the  other  hand,  under  the 
most  favourable  circumstances,  there  will  be  the  costs 
of  winding  up  the  war,  demobilisation,  &c. ,  and  a  year 
henoe  the  total  nett  debt  cannot  well  be  less  than  6,500 
millions ;     but    Mr.    Crammond     regards     only     some 
2,000    millions   as   really  lost — an  extremely   sanguine 
opinion,  in  view  of  the  havoc  wrought  in  many  direc- 
tions, which  we  are  unable  to  endorse.     All  the  same, 
Mr.  Crammond  is  a  very  capable  and  painstaking  in- 
vestigator,  and   his  figures  are   always  worth  careful 
consideration.      He   puts   the  post-war   expenditure   at 
close  on  700  millions^  of  which  325  miKions  would  be 
required  for  interest  and  sinking  fund  on  the  National 
Debt.     The   problem  for  the  future  Chancellor  of  the 
Exchequer  will  be  how  to  provide  this  vast  sum,  and 
the  lecturer  threw  out  one  or  two  suggestions  that  may 
prove  useful.      He  advocates  an  increase  in  the  death 
duties  and  indirect  taxation,  the  abolition  of  the  cxemjj- 
tions  enjoved  by  farmers  as  regards  income  and  other 
taxes,  and  the  institution  of  a  small  graduated  annual 
tax  on  capital   averaging  i   per  cent.,  with  exemption 
up  to,  say,  ;i£^2,ooo.     The  revenue  from  this  source  he 
estimates  at  120  millions,  but  he  deprecated  any  other 
increase  in  direct   taxation,   and  suggested  a  gradual 
reduction  in    the  excess   profits  duty  to  10  per    cent, 
within    the    first    five    years    of    peace.       Income-tax 
is  to  be  regarded  as  standardised  at  5s.  in  the  -£.,  and 
in  this  way  a  revenue  of  700  millions  odd  can  be  bud- 
geted  for.     There    is   nothing  very  original  about  all 
this,  and  we  are  afraid  the  net  must  be  cast  much  wider 
when  the  deflation  following  the  enormous  war  expendi- 
ture begins  to  take  effect. 


;^5So,oco  down  at  ;^i,76i,ooo.  The  balance-sheet 
total  is  fully  two  millions  larger  at  ;^i 5,962,000,  and 
the  plan  of  having  an  advisory  committee  in  Montreal 
is  evidently  proving  a  success.  It  is  mentioned  that 
in  Canada  533  proprietors  hold  6,356  shares,  and  in  the 
United  Kingdom  1,295  persons  hold  12,993  shares, 
while  elsewhere  the  figures  are  67  and  651  respectively. 


Further  progress  was  shown  by  the  Bank  of  British 
North  America  in  the  year  to  November  30,  and  the 
nett  profits  amounted  to  ;^i37,26o,  an  increase  of 
;^25,ooo,  while  ;^i  1,000  more  was  brought  in..  Con- 
sequently, the  directors  are  able  to  raise  the  dividend 
from  7  per  cent,  to  8  per  cent.,  to  increase  the  bonus 
to  staff  from  ;^7,ooo  to  ;^i6,ooo,  and  to  olace  ;^6,ooo 
more  at  ;^3o,56o  to  various  funds,  includino-  charitable 
contributions.  There  then  remains  ^732, 120,  or 
;^r  1,000  more  to  be  carried  forward.  Notes  in  circu- 
lation aie  a  little  higher  at  :^i,i73.ooo,  but  while  de- 
posit accounts  have  risen  ;^2, 460,000  to  /TS, 396,000, 
current  acrr>nnt<;  are  /['470,ooo  lower  at  ;^'!. 7.11;, 000. 
Cr>in  and  Dominion  notes  have  risen  slio'htly  to 
/Ti, 241, 000,  short  loans  are  /".Ti^^o.ooo  hieher  at 
/Tr,  530. 000,  and  other  advances  have  increased 
;^i,t  10,000     to     ;^7, 5 14,000,     but    investments    are 


Following  an  increase  of  ;^20,ooo  in  1916,  the 
Dominion  Bank  last  year  added  a  further  ;^24,ooo  to 
its  nett  profits,  which  amounted  to  ;^223,45o,  and  with 
a  larger  sum  brought  in  the  available  balance  is 
^.2j,ooo  up  at  ;^28i,20o.  The  dividend,  however,  is 
kept  at  12  per  cent.,  paid  in  four  quarterly  instalments, 
and  the  amount  written  off'  premises  is  doubled  at 
;^4i,ioo,  leaving  ;^6,ooo  more  at  ;^8o,75o  to  be 
carried  forward.  Deposit  and  current  accounts  have 
increased  ;^2,350,ooo  to  ;^i6, 839,000,  and  there  was 
an  expansion  of  ;^47o,ooo  to  ;^i,935,ooo  in  the  note 
circulation.  Cash  assets  have  risen  ;^i, 550,000  to 
;^5,6i7,ooo,  but  loans  and  discounts  are  ;^7oo,ooo 
down  at  ;^9,368,ooo.  Short  loans  at  /^i, 570,000  and 
investments  at  ;^4,66o,ooo  are  both  higher,  and  the 
balance-sheet  reaches  the  substantial  total  of  almost 
23h  millions.  Everything  looks  as  prosperous  as  could 
be  wished. 


We  are  gradually  learning  what  serious  effects  the 
abnormal  rains  in  South  Africa  have  had  on  the  Rand 
mining  industry.  A  telegram  from  the  Rand  Mines, 
Ltd.,  at  Johannesburg,  states  that  on  February  14  and 
15,  heavy  additional  rains  fell,  the  results  of  which 
have  been  most  severely  felt  by  most  of  the  mines 
belonging  to  the  Central  Mining-Rand  Mines  group, 
from  Rose  Deep  on  the  east  to  Durban  Deep  on  the 
west.  Hoisting  of  ore  has  been  considerably  inter- 
fered with,  and  consequently  both  the  scale  of  opera- 
tions and  profits  have  been  materially  redrcsd.  Shaft 
hauling  and  equipment  and  gear  have  felt  the  undue 
strain  placed  upon  them,  which  will  necessitate  an 
abnormal  amount  of  maintenance  expenditure.  It  is 
anticipated  that  the  strain  will  continue  for  some  con- 
siderable time  yet,  and  in  certain  cases  may  even 
become  worse  before  the  abnormal  percolation  into  the 
underground  workings  ceases,  and  the  quantity  of 
water  returns  to  normal  proportions.  The  Ban*^j?s, 
Crown  Mines,  Durban  Deep,  Geldenhuis  Deep,  Robin- 
son Gold,  Rose  Deep,  Village  Deep,  Consolidated 
Main  Reef,  and  Wolhuter  mines  have  been  seriously 
affected,  but  the  other  mines  of  the  group  have  escaped 
any  serious  effects. 

The  adverse  effects  of  the  higher  cost  of  production 
on  the  position  of  the  gold  mines  is  becoming  more 
evident  every  week.  Following  the  shutting  down  of 
the  Sheba  mine,  the  restriction  of  production  at  the 
Mysore,  and  the  passing  of  the  current  quarter's  divi- 
dend by  the  Sons  of  Gwalia  mine,  the  Ivanhoe  Gold 
Corporation  has  decided  to  make  a  considerable  reduc- 
tion in  its  monthly  profits  in  future.  At  December  31 
the  ore  reserves  showed  a  slight  increase  at  1,035,874 
tons,  but  the  average  value  has  decreased  by  2s.  id. 
to  34s.  2d.  per  ton.  In  consequence  partly  of  this 
reduction,  the  increased  inefficiency  of  labour,  and  the 
higher  costs  of  working,  it  is  no  longer  possible  to 
maintain  the  crushing  of  a  tonnage  sufficient  to  obtain 
the  present  profit  of  ;^9,ooo  a  month,  and  it  is  now 
necessary  to  reduce  the  monthly  profit  to  ;^5,40O,  or 
the  equivalent  of  dividends  of  about  6s.  _6d.  per  share, 
as  against  los.  6d.  per  share.  The  history  of  this 
mine,  in  common  with  the  other  mmes  of  the  field,  has 
been  the  gradual  diminution  of  the  values  of  the  ore, 
and  there  is  no  reason  to  expect  that  there  can  be  any 
recovery  in  grade  unless  the  east  lode  resurnes  its  value 
below  the  porphvry  bar  at  4,000  ft.,  which,  though 
possible,  cannot  be  regarded  as  probable  in  anv  wav. 
It  is  stated,  however,  that  there  are  consid^riblc 
chances  of  the  prolongation  of  the  life  of  the  mine  by 
lateral  de^'elooment  in  the  uppT  levels,  while  after  the 
war  it  should  be  possible  to  reduce  the  level  of  work- 


242 , 


tibe  investors'  IRevtew. 


March  9,  1918. 


ing  costs.  It  is  rather  unfortunate  that  at  the  same 
time  a  strike  of  miners  shooild  have  occurred  on  the 
Kalgoorlie  field  over  the  question  of  the  interpretation 
to  be  placed  on  an  award  given  by  an  arbitration  court 
of  a  44-hour  week,  for  that  has  involved  a  complete  sus- 
])ension  of  operations. 


It  is  nearly  two  years  since  receivers  were 
appointed  for  Spiers  and  Pond,  Ltd.,  and  numerous 
efforts  have  been  made  meantime  to  produce  an  accept- 
able reconstruction  scheme.  To  begin  with,  the  first 
mortgage  debentures  proved  an  insuperable  obstacle, 
but  the  sale  of  the  Criterion  Restaurant  for  ;£■! 30,000 
provided  funds  to  get  rid  of  this  liability.  It  is  now 
proposed  to  consolidate  the  other  debenture  issues  into 
one  5  per  cent,  stock,  and  to  convert  the  preference  and 
ordinary  shares  into  ;^90,ooo  ordinary  stock.  The  effect 
of  the  proposals  will  best  be  seen  from  the  following 
table : — 


Existing. 

To  be  Exc 
New  Debs 

hanged  for 
New    Ord. 

£ 

200,000 
190,000 

95,000 
300,000 

60,000 
360,000 
360,000 

£ 

50,000 

95,000 

66,240 

258,000 

£ 
150,000 
95,000 
29,760 
42,000 
80,000 
72,000 
18,000 

"B"          

"C  "         

"D"          .• 

Creditors  estimated  at    

Ordinary  shares  

Total  

1,586.000 

469,140 

486,760 

Arrears  of  debenture  interest,  estimated  at  about 
;^75,c>oo,  will  be  satisfied  by  the  allotment  of  ordinary 
shares  after  the  adjustment  of  income-tax.  Preference 
shares  will  be  reduced  by  i6s.,  and  all  arrears  of  divi- 
dend cancelled,  while  the  ordinary  have  to  be  content 
with  IS.  per  share.  Interest  and  sinking  fund  on  the 
new  debentures  will  require  ;^28,i5o,  and  it  is  stated 
that  if  the  conditions  which'  have  prevailed  during  the 
receivership  should  not  become  worse  the  profits  ought 
to  make  this  secure  and  provide  a  surplus  for  divi- 
dends. The  company  has  suffered  many  vicissitudes, 
and  we  hope  that  this  latest  scheme  will  suffice  to  place 
the  business  on  a  sound  basis,  but  drastic  as  the  pro- 
posals are,  we  feel  some  doubt  vi'hether  the  knife  has 
been  put  in  deep  enough.  That  was  where  previous 
arrangements  failed,  and  we  can  only  trust  that  the 
mistake  has  not  been  repeated. 


That  long-overdue  scheme  for  the  readjustment  ot 
the  capital  of  Richardsons,  Westgarth  and  Co.,  Ltd., 
is  at  last  taking  shape.  It  is  proposed  to  reduce  the 
preference  shares  to  i6s.  and  the  ordinary  to  8s.,  but 
the  cumulative  dividend  on  the  former  will  be  in- 
creased to  7|  per  cent.  One-half  of  the  arrears  of 
preference  dividend  will  be  cancelled  temporarily,  but 
if  there  are  any  surplus  profits  two-thirds  will  go  to 
the  preference  until  these  arrears  are  completely  liqui- 
dated. It  seems  a  very  reasonable  arrangement,  and 
as  a  lot  of  profitable  work  is  on  hand,  there  is  a  fair 
prospect  that  the  company  may  get  re-established  on 
a  sound  financial  basis. 


The  report  of  the  Premier  (Transvaal)  Diamond 
Mining  Co.  for  the  year  ended  October  31  shows  a 
marked  improvement  on  the  previous  document.  There 
were  produced  906,341  carats,  valued  at  ;^i,  198,922, 
as  against  ;^475,856  in  1915-16.  The  value  per  carat 
rose  from  £\  2s.  7.95d.  to  ;^i  6s.  5.48d.,  and  the 
average  cost  per  carat  was  iis.  4. 2d.  A  working 
profit  of  ;^65o.944  was  made  on  the  vear's  production, 
as  against  ;^268,632,  and  the  total  is  increased  to 
;^8oo,9i9  by  the  realisation  of  the  stock  of  diamonds 
brought  forward.  The  unsold  stock  carried  forward 
is  only  ;^io,355.  Revenue  account  shows  a  balance 
of  ;^757.046  available  for  distribution  between  the 
Government  and  the  comnany,  a  sum  which  compares 
favourably  witK  the  profits  made  bv  the  company  in 
normal  times.  The  company's  share  of  the  orofits,  40 
per  cent.,  comes  to  ;^302,8i8,  and  £v^,,o^%  was  re- 
ceivefl  on  account  of  sundry  revenue.  During  the  year 
five  dividends  were  paid  on  the  preference  shares,  cover- 


ing the  period  from  May  i,  1915,  to  October  31  last,  and 
one  dividend  of  6s.  3d.  per  share  has  been  paid  to  the 
deferred  shareholders,  the  first  they  have  received  for 
upwards  of  three  years.  Thest  dividends  have  absorbed 
;^346,25o,  ;^2o,ooo  is  placed  to  insurance  reserve,  and 
the  balance  carried  forward  is  reduced  from  ;^77,440  to 
;^6,3io.  As  there  is  no  prospect  of  any  improvement 
in  the  market  under  war  conditions,  the  directors  do 
not  anticipate  any  increase  in  the  quantity  of  diamonds 
produced,  but  look  rather  to  the  maintenance  and  in- 
crease of  the  price  of  diamonds  to  keep  up  the  profits 
to  the  pre-war  standard.  Under  the  arrangements  made 
with  the  De  Beers  Co.  the  price  of  stones  has  been 
raised,  and  this  will  enable  the  company  to  recover  in 
price  what  they  may  lose  in  output  during  tne  con- 
tinuance of  the  war. 


So  it  seems  that  already  a  party  is  in  course  of 
formation  to  rouse  .the  country  in  support  of  a  traitor 
peace.  A  meeting  has  been  held  to  that  end,  and  the 
hope  is  expressed  that  the  Marquis  of  Lansdowne  will 
go  on  the  stump.  Probably  these  worthy  people  are 
all  most  patriotic  in  their  own  esteem,  and  also 
humanitarian  in  sentiment,  nay,  ultra-humanitarian, 
many  of  them.  None  the  less  is  it  true  that  their 
action  tends  to  saddle,  and,  if  successful,  w»uld  be- 
yond question  actually  saddle,  the  world  with  a  con- 
tinuance of  that  demoralising,  wealth-consuming,  and 
altogether  brutalising  military  organisation  which  the 
world  has  groaned  under,  we  may  say,  ever  since  man 
was  organised  in  communities  of  various  degrees  of 
civilisation  on  its  surface,  and,  above  all,  since  Prussia 
perpetrated  the  wanton  crime  of  1871,  out  of  which 
the  present  war  has  sprung.  Do  they  like  the  pros- 
pect, these  sentimental  pacifists  and  approve  a  peace 
which  would  place  this  country  in  the  position  of  hav- 
ing to  choose  between  laying  down  her  arms  and 
letting  her  Empire  go  and  compounding  with  her 
creditors,  to  her  swift  ruin?  We  do  not  suppose  they 
ever  thought  of  such  alternatives.  Not  one  of  them, 
so  far  as  we  judge  by  the  names,  has  the  faintest 
glimmering  of  the  forces  underlying  finance,  and  pro- 
bably would  not  care  much  if  they  did,  so  long  as  the 
line  of  action  they  adopt  serves  to  make  them  con- 
spicuous by   being  odd. 


The    Russian    "  Peace "    That    Opens 
Hell  for  the  Russian  People. 

Why  do  so  many  representative  political  personages 
keep  harping  upon  the  duty  of  the  Allies  to  state  the 
terms  upon  which  they  will  make  peace?  Even  M. 
Albert  Thomas  said  something  of  that  kind  in  his  vivid 
address  at  the  Mansion  House  on  Monday  last.  "  It 
must  be  laid  down  with  precision,"  he  said,  "what 
are  the  limits  of  the  right  of  peoples  to  disjx>se  of 
themselves.  There  are  formed  peoples  and  un- 
developed peoples.  When  the  enemy  declares  that  the 
peoples  of  India  and  of  Morocco  ought  to  be  allowed  to 
decide  their  own  lot  he  commits  an  inadmissible 
sophism."  That  is  undoubtedly  true,  but  the  present 
does  not  seem  to  be  the  proper  time  to  discuss  points 
of  this  kind.  They  are  understood  practically  enough 
by  the  Allies  of  Liberty,  accustomed  to  rule  un- 
developed nations.  Our  business  is  to  put  down 
militarism,  to  destroy  it  and  all  that  it  stands  for,  not 
only  in  the  two  derelict  empires  of  Middle  Europe,  but 
in  Turkey  and  everywhere,  and  until  that  is  done 
philosophic  and  abstract  discussions  of  the  type 
alluded  to  by  the  distinguished  French  Socialist  might 
as  well  be  avoided. 

Still  more  is  it  inadvisable  to  keep  urging  upon 
Governments  one  more  "  restatement  "  of  the  Allied 
terms  of  peace  such  as  Mr.  Arthur  Henderson  and  some 
other  working  men  leaders  are  continually  doing. 
What  good  could  be  done  by  these  reiterations  of 
"statements  of  terms"?  Have  we  not  again  and 
again,  all  of  the  Allies  together  and  each  one  separately, 
clearly  and  definitely  set  forth  our  aims  and  the  un- 
selfishness thereof.  Our  work  is  to  liberate,  not  to 
enslave.     Germany  knows  as  well  as  wo  do  that  the 


J 


March  9,   1918. 


XTbe  Jnvestors'  IRevtew* 


243 


Allies  are  not  fighting  to  make  conquests,  but  in 
resistance  to  a  wanton  aggressor,  whose  greed  is  only 
equalled,  if  it  be  equalled,  by  his  astounding  materialism 
of  outlook  and  colossal  stupidity  in  human  affairs. 

When  we  are  disposed  to  be  despondent  about  the 
progress — although  never  about  the  result — of  the 
fight,  we  are  generally  favoured  by  some  burst  of 
flapdoodle  eloquence  by  William  the  Kaiser  to  cheer 
us  up.  And  surely  he  suq>assed  himself  in  his  telegram 
to  Count  Hertling  boasting  about  "  peace  with 
Russia."  "The  German  sword,"  he  wired,  "wielded 
by  the  great  Army  leaders,  has  brought  peace  with 
Russia.  With  deep  gratitude  to  God,  Who  has  been 
with  us  "^hc  is  always  cocksure  on  that  point — "  I 
am  filled  with  proud  joy  at  the  deed  of  my  Army  and 
at  the  tenacious  perseverance  of  my  people."  And  it 
is  a  special  satisfaction  to  this  bounder  that  "German 
blood  and  German  Kultur  have  been  saved."  So  he 
thanks  his  functionary  in  the  usual  Bombastes  Furioso 
style.  Could  anything  be  more  contrary  to  the  facts 
than  William  HohenzoUern's  description  of  the  so- 
called  "peace"  with  Russia?  No,  indeed;  and  it  is 
cheering  always  to  us  to  think  that  our  opponents, 
tough-fighting  though  foul,  are  capable  of  being  misled 
by  transpontine  heroics  of  this  description.  It  fortifies 
our  opinion  that  their  defeat  is  in  the  end  to  deal  the 
most  far-reaching  blow  to  barbaric  tyranny  the  world 
has  ever  witnessed.  Were  Germany  to  lay  down  that 
"sword  "  of  her  Kaiser's,  to-morrow  week  she  would 
find  herself  isolated  and  alone  among  the  nations, 
shunned  and  shrunk  from   by  them  all. 

And  why  do  we  imitate  the  Hohenzollern,  and  call 
the  "  peace  "  of  plotters  and  Russian  traitors,  hired 
betrayers  of  liberty,  a  "Russian  peace"?  It  is  only 
a  peace  between  Prussian  agents  provocateurs  and  their 
Russian  tools ;  in  no  sense  a  peace  with  the  real  people 
of  Russia.  That  the  real  Russia  has  no  hand  in  this 
infamous  peace  treaty  is  patent  to  everybody  outside 
Germany ;  but  its  devising  and  proclamation  may  have 
the  effect  of  rousing  the  people  and  bringing  them  to 
their  senses  in  a  way  which  will  summon  them  again 
to  the  side  of  the  Allies  as  effective  instruments  to  aid 
in  the  overthrow  of  oppression.  The  more  they 
penetrate  Russia  and  subject  the  Slavs  there  to  German, 
insolence  the  greater  will  be  the  revolt,  the  more 
sweeping  the  vengeance.  And  as  one  looks  at  the  terms 
of  this  .so-called  treaty  one's  amazement  increases  that 
even  self-conceited  Germany  could  believe  it  real  or 
durable. 

And   to  think   that  there   should   be   any   individual 
in  this  country,  claiming  to  be  inteUigent,  and  endowed 
with  some  modicum  of  sense,  who  could  imagine  that 
there  is  a  possibility  of  coming  to  a  satisfactory  peace- 
ensuring  agreement  with  such  enemies  as  these  covet- 
all  Germans  have  proved  to  be,  is  beyond  our  capacity 
to  realise.     Look  what  is-  embodied  in  this  impudent 
concoction  made  with  the  scum  of  the  earth.     It  sets 
forth  that  Germany,   Austria-Hungary,    Bulgaria   and 
Turkey — faithful  and  noble  Allies  in  ruthless  villainy — 
"  agree  with  Russia  to  declare  the  state  of  war  at  an 
end."    It  then  goes  on  to  strip  Russia,  as  far  as  words 
can  do  so,  of  every   shred  of  capacity   to  renew  the 
fight   should   the   people   wake   up.     The    frontier    of 
Germany  is  brought  up  almost  to  the  gates  of  Petro- 
grad.     All  her   Eastern   lands   are   to  be   denuded    of 
Russian  troops,  and  Poland  is  never  mentioned.     The 
Baltic  Sea  is  made  a  German  lake,  and  Sweden  is  to 
be   overawed    into    subservience   by   the    transfer   and 
sham  neutralisation  of  the  Aaland  Islands  which  con- 
trol the  entrance  to  the  Gulf  of  Bothnia.  Esthonia  and 
Lavonia  are  to  be  taken  wholly  out  of  Russian  hands 
under  pretence  of  leaving   them   free   to  choose  their 
overlord,   and   the   Russian    fleet    is  to  be   dismantled 
and   sent  back  to   Russian   port^.     If  that   cannot  be 
done  now  because  of  the  ice,  the  crews  are  to  be  nearly 
all  removed,  and  in  some  respects  the  greatest  crime  of 
all,  Armenia,  and  much  more,  is  to  be  handed  back  to 
the  Turk,  i.e.,  to  Germany,  whose  officers  and  agents 
incited  and  superintended  the  last  and  worst  Armenian 
massacre.     It  is  horrible.     It  is  such  a  treaty  as  the 


most  ruthless  of  conquerors^  by  force  of  arms,  would 
hardly  have  thought  of  imposing  upon  an  enemy  de- 
feated in  a  fair  fight,  and  brought  to  his  knees  in 
heljjlessness. 

We  hope  this  greedy  and  overbearing  enemy,  foe  to 
all  human  aspirations  not  bestial,  will  soon  find  to  his 
cost      that      his      ferocious      treaty      has      not      been 
made      with      Russia.       .A.nd      the    fact      that      he, 
goaded    by    his    hunger,    in    frantic    haste     is     now 
making     the     most    of     his    transitory     opportunity, 
by  seizing  everything  he  can  lay  his  hands  on,  especi- 
ally  food,    and   continuing   to   lay   the   foundation   for 
other   claims   over   which    he   may   wrangle   when    he 
comes  to  be  confronted  with  the  Allies  in  the  West, 
make  us  sure  that   Nemesis   is   already  at  his  heels. 
Rumania  is  being  coerced  into  submission,  and  doubt- 
less that  is  designed  to  mean  the  stretching  forth  of 
the  Prussian  "  mailed  fist  "  over  Southern  Russia,  so 
as  to  get  control  of  the  Black  Sea,  and  work  eastward 
towards    Persia    and    India,     designed     also     to     put 
Germany  in  possession  of  Rumanian  grain  and  oil.     A 
beautiful   "peace"   surely,   a  peace  of  the  tyrant,   a 
peace  to  convert  a  great  empire  into  a  horde  of  slaves. 
Is  there  a  man   alive   in   Britain   to-day  who  can   be- 
lieve it  possible  that  ferocious  knavery  of  this  kind  can 
succeed,      even     though     backed      by      the      Kaiser's 
"sword" — his    god?      We   may     know     when     Lord 
Lansdowne  gathers  his  peace  agitators  together. 

We  are  glad  to  see  that  so  far  our  most  rampageous 
newspapers  have  this  time  abstained  from  heaving  mud 
and  bricks  at  the  said  Lord  Lansdowne,  who  has  had 
the  imprudence  to  write  another  "peace  "  letter.  No 
one  who  realises  what  the  war  implies,  what  our  goal 
in  it  must  be,  or  who  beholds  Prussianism  at  its  fullest 
and  foulest  in  Russia,  can  be  other  than  disappointed 
that  a  man  of  Lord  Lansdowne's  elevation  should  per- 
sist in  attempts  to  bring  about  a  premature  and  there- 
fore an  eminently  dangerous  peace  with  such  a  foe. 
At  the  same  time,  it  is  in  a  way  significant,  and  to  his 
honour,  that  he  still  persists  in  being  wholly  unable  to 
conceive  the  true  character  of  our  opponents  as  ex- 
hibited in  all  their  diplomatic  performances.  To  him 
Count  Hertling  would  seem  to  be  even  to-day  a  pure- 
minded,  honest,  and  independent  servant  of  his 
countrv  of  the  comolexion  of  his  lordship  himself. 
Therefore,  he  accents  the  Chancellor's  phrases  as  he 
would  those  of  a  French,  Italian,  or  American  states- 
man, or  one  of  his  own  order  at  home.  And  so  he 
revives  the  peace  cackle  again  at  a  moment  when  the 
staeing  of  Prussia's  "  triumohs  "  are  most  calculated 
to  turn  the  weak-souled  among  us  to  thoughts  of  com- 
promise.    Ah  the  pity  of  it  ! 


THE  LONDON  CITY  AND 
MIDLAND  BANK  Limited 

will  supply  all  information  respecting 

NATIONAL 
WAR  BONDS 

and  invites  investors  to  make  their 
applications  for  the  same  at  any  of  its 
ofiices  throughout  the  United  Kingdom 


HEAD    OFFICE:    5,  THREADNEEDLE     STREET, 
LONDON,    EX.  2. 


244 


Zbc  investors'  IReview^ 


March  9,   1918. 


Prudential    Assurance    Co.,    Ltd. 

In  its  own  sphere  the  I'rudential  is  probably  amongst 
the  best  organised  businesses  in  the  three  iiingdoms. 
It  is  such  a  marvellously  efficient  corporation  that  in 
studying  its  figures  and  reading  the  story  of  the  past 
year  as  told  by  the  chairman,  Sir  Thomas  Dewey, 
Bart.,  one  is  inclined  to  wish  that  its  controllers  could 
be  transferred  bodily  down  to  Whitehall.  There  they 
would  be  in  a  position  to  save  goodness  knows  how 
many  millions,  and  obviously  they  are  capable  of  doing 
it. 

Last  year,  the  third  of  this  consuming  war,  would 
not  be  expected  at  first  blush  to  show  superlatively  fine 
results  in  life  insurance,  and  perhaps  it  has  not  done 
so  always,  but  certainly  the  Prudential  did  well.  In 
its  ordinary  branch  it  issued  56,502  policies,  or  more 
than  1,000  a  week,  insuring  ;^'6,95i,269,  and  yielding 
£5^7^72  in  annual  premiums.  The  total  premium 
income  of  this  branch  was  ;^S,495,205,  an  increase  of 
^'265,035  on  1916.  Claims  took  ^"4,852,409,  ;^398,385 
of  which  represented  war  claims.  At  the  end  of  the 
year  there  were  ;£934,o75  policies  in  force  in  this 
branch. 

In  the  industrial  branch,  which  has  been  the  gold 
mine  of  rich  ore  of  the  company,  the  premiums  received 
came  to  ^"9,376,858,  or  ;^479,i35  more  than  those 
received  in  1916,  and  claims  reached  ;^4,352,03i,  of 
which  ;^i,io9,24o  were  war  claims.  There  were  also 
bonus  additions  of  ;^38,7io,  but  the  nctt  result  was 
that  fully  ;;£,'5,ooo,ooo  of  the  premium  income  was  left 
in  the  hands  of  the  company  for  reserves,  &c.,  &c.  At 
the  end  of  the  year  there  were  21,730,468  industrial 
policies  in  force,  including,  we  presume,  the  free 
policies,  which  numbered  2,009,872.  There  are  other 
minor  branches  of  the  business,  all  doing  well,  all  effi- 
ciently conducted,  but  it  is  unnecessary  to  go  into 
them. 

The  usual  annual  valuation  was  made  by  the  com- 
pany's distinguished  actuary,  Mr.  Joseph  Burn,  and  it 
brought  out  on  the  fairly  stringent  standard  of  valua- 
tion adopted,  viz.,  3  per  cent.,  a  surplus  of  ;^i, 584,540 
in  the  ordinary  and  of  ;^6i6,26o  in  the  industrial 
branch,  including  ;^2i8,240  brought  forward  in  the  one 
'  case  and  ;£ri84,53o  in  the  other.  Altogether  the  sur- 
plus of  the  two  branches  aggregated  ;^2, 200,800,  of 
which  ;^ 1, 000,000  is  transferred  from  the  ordinary 
branch  to  the  contingency  fund,  increasing  the  surplus 
to  ;^3> 200,800,  of  which  amount  ;^4oo,ooo  has  been 
added  to  the  investment  reserve  fund  in  the  ordinary 
branch,  and  ^335,623  to  the  similar  fund  of  the  indus- 
trial branch.  Then  ;^i,794,295  is  allocated  to  participat- 
ing policyholders  in  the  ordinary  branch  and  ;^40o,ooo 
to  the  shareholders,  leaving  ,^270,882  to  be  carried 
forward,  of  which  ;^92,47o  goes  to  the  industrial 
branch. 

It  will  be  remembered  that  some  years  ago  the  direc- 
tors instituted  a  profit-sharing  branch  in  the  industrial 
wing  of  the  business,  by  which  surplus  moneys  were 
divided  between  the  shareholders,  outdoor  staff,  and 
the  policyholders,  but  since  the  war  began  these  parti- 
cipants have  mostly  received  nothing.  The  share- 
holders and  the  outdoor  staff,  for  instance,  each  re- 
ceived ;^ioo,c)oo  in  each  of  the  two  years  1913-14,  and 
in  1915  each  got  ;^50,ooo,  but  for  the  last  three  years 
neither  the  shareholders  nor  the  outdoor  staff  has  had 
a  penny,  while  the  policyholders,  although'  their  por- 
tion is  now  down  to  an  infinitesimal  figure,  have  in 
these  three  lean  years  received  in  all  ;^i 50,000.  The 
reason  for  this  leanness  was  clearly  explained  hy  Sir 
Thomas  Dewey  at  the  meeting.  In  effect  it  was  that 
the  company  has  used  the  money  to  pay  war  claims, 
^and  what  these  mean  he  illustrated  by  stating  that  the 
company's  losses  by  claims  in  the  present  war  amount 
up  to  date  to  /r3, 456, 220,  and  that  is  not  surprising 
when  we  note  the  fact  that  the  risk  on  the  life  of  a 
man  20  years  old  has  proved  to  be  as  great  as  that  in 
ordinary  times  on  the  life  of  a  man  of  64.  In  August, 
191 4,  the  estimated  cost  to  the  company  of  meeting 
these  war  risks  was.  ;^2,oc)0,ooo.  It  has  been  largely 
exceeded,  and  the  profits  assigned  to  the  policyholders. 


shareholders,  and  outdoor  staff  have  been  availed  and 
utilised  to  meet  the  excessive  claim.  Sir  Thomas 
hinted  that  the  Government  might  reasonably  be  ex- 
pected to  come  forward  and  cover  the  extra  outlay,  and 
that  no  doubt  is  a  matter  which  will  by  and  by  come 
up  for  discussion.  In  the  meantime,  this  company  has 
certainly  done  well  by  the  Empire,  and  the  chairman 
did  not  go  too  far  when  he  declared  that  the  sacrifice 
on  the  part  of  the  shareholders  is  "  without  precedent." 
"  Their  sacrifice,"  he  added,  "  gives  the  lie  to  those  who 
would  urge  commercial  undertakings  are  necessarily 
devoid  of  heart  or  soul."  They  are  not  that — insur- 
ance companies  should  be  so  least  of  all — and  the  Pru- 
dential has  assuredly  done  its  duty  in  this  and  other 
ways.  Its  balance-sheet  now  totals  ;^io7,283,39i, 
and  of  this  majestic  figure  ;^27,242,467  is  invested  in 
British  Government  securities.  No  wonder  the  secre- 
tary of  the  company.  Sir  George  May,  has  followed 
the  chairman  in  being  honoured  by  the  King. 


Courtaulds'    Handsome   Bonus. 

We  were  able  last  week  to  give  a  brief  outline  of 
the  great  bonus  scheme  of  Courtaulds,  Ltd.,  and  we 
now  have  the  report  for  1917  to  fill  in  the  details.  The 
figures  disclose  a  position  of  the  most  abounding 
prosperity,  and  they  would  doubtless  be  still  more  im- 
pressive if  they  were  not  so  ruthlessly  condensed.  Nett 
profits,  after  providing  for  excess  duty  and  all  other 
expenses,  amounted  to  ;£^  1,1 74, 000,  an  increase  of 
;^75,ooo,  which  follows  a  gain  of  ;^"340,ooo  in  1916. 
The  latter  figure  would  have  been  much  larger  but  for 
the  fact  that  two  years'  excess  duty  was  deducted,  but 
the  amount  was  not  disclosed.  In  these  circumstances, 
and  bearing  in  mind  that  80  per  cent,  of  the  profits 
above  the  pre-war  standard  now  goes  to  the  Govern- 
ment, the  past  year's  results  are  truly  wonderful,  and 
they  represent  very  nearly  60  per  cent,  on  the  paid-up 
capital.  But,  as  already  announced,  the  dividend  is 
kept  at  30  per  cent,  (of  which  12J  per  cent,  has  been 
paid  as  interim),  while  ;^767,ooo  is  placed  to  reserve 
in  order  to  round  off  the  bonus  .scheme,  and  ;^i40,250 
is  written  off  the  holding  in  Russian  Viscose  Co.  shares 
to  bring  them  down  to  25  per  cent,  of  their  cost.  There 
'then  remains  ;^62,930  to  be  carried  forward  against 
;^277,40o  brought  in.  Last  year  ;^2oo,ooo  was  placed 
to  reserve  and  ;^I36,200  was  written  off  patents. 
Another  ;^200,odo  was  applied  to  writing  off  the  good- 
will and  to  special  depreciation  of  the  buildings,  plant, 
&c. ,  of  the  undertaking  acquired  at  Flint,  but  this 
proved  more  than  was  necessary  to  meet  the  require- 
ments, and  the  surplus  of  ;^38,48o  has  been  taken 
credit  for  in  the  present  accounts.  It  is  stated  that 
the  patents  held  by  the  British  Glanzstoff  Manufac- 
turing Co.,  Ltd.,  of  Flint,  have  now  been  acquired  by 
Courtaulds.  During  the  yea„r  an  offer  was  made  to  the 
debenture  stockholders  of  the  company  to  redeem  their 
holdings  in  exchange  for  5  per  cent.  War  Loan,  with 
the  result  that  the  amount  outstanding  has  been  re- 
duced from  ;^302,30o  to  ;^i 7,635.  Nevertheless,  cash 
is  only  ;^i  12.000  lower  at  /?6o5,ooo,  and  against  an 
increase  of  ^^206,000  to  ;^883,ooo  owing  to  sundry 
creditors,  stocks  are  ;^258,ooo  higher  at  ;^707,ooo  and 
investments  are  ;^265,ooo  up  at  ;^2,4og,ooo,  while 
property,  plant,  &c. ,  has  been  written  down  ;£i^57,oc)0 
to  ;if  570,000. 

In  1916  shares  of  a  nominal  value  of  $550,500  in  the 
American  Viscose  Co.  were  sold  to  directors  of  that 
company,  and  the  nett  amount  of  the  consideration — 
;^i88,420 — was  pl.nced  to  capital  reserve.  This  left 
Courtaulds  with  Viscose  shares  of  a  par  value  of 
$9,448,000,  for  which  no  credit  was  taken  in  the 
accounts.  It  has  now  been  decided  to  value  these 
shares  at  ;^6,444,48o,  or  approximately  14s.  per 
dollar,  whereas  the  shares  sold  in  1916  fetched  only 
alK)ut  half  that  price.  No  doubt,  however,  the  business 
has  made  considerable  progress  since  then.  With  the 
company's  other  reserves  amounting  to  ;^i,555,5i3  we 
get  a  total  of  ^7.999,993,  which  it  is  proposed  to 
capitalise  and  divide  into  4,000,000  6  per  cent,  pre- 
ference and  3,99Q,993  ordinary  shares  of  ^i  each.    This 


T^Iarch  9,   1918. 


■^be  Jnvestors'  IReview* 


245 


will  raise  the  capital  to  a  round  10  millions,  and  will 
allow  of  the  distribution  of  two  preference  and  two 
additional  ordinary  shares  in  respect  ot  every  share  at 
jDresent  held.  The  holders  of  tlie  existing  seven  odd 
shares  not  otherwise  participating  will  be  satisfied  in 
cash.  As  the  scheme  involves  the  issue  of  additional 
capital  it  has  to  receive  the  sanction  of  H.M.  Treasury, 
which  has  not  so  far  been  obtained,  and  the  issue  of 
the  new  shares  may  therefore  be  deferred,  but  the 
directors  very  properly  have  considered  it  desirable  to 
place  the  information  before  the  shareholders  as  soon 
as  the  details  were  completed,  so  that  there  should  be 
no  leakage  for  share-rigging  purposes. 

Some  such  distribution  was  foreshadowed  a  year 
ago,  but  the  present  proposal  is  more  generous  than 
was  usually  anticipated,  and  although  several  other 
"industrial  concerns  have  recently  been  in  the  happy 
position  of  feeling  justified  in  capitalising  reserves,  no 
"bonus  scheme  has  been  on  the  magnificent  scale  of 
Courtaulds  for  a  long  time  past.  Of  course,  there  are 
all  sorts  of  estimates,  ranging  from  ;^8  to  ;^i5,  as  to 
the  proper  valuation  of  the  existing  shares,  but  we 
are  rather  inclined  to  the  less  optimistic  view  in  such 
•cases.  It  must  be  observed  that  the  scheme  involves 
the  disappearance  of  all  except  "hidden"  reserves, 
and  prudent  people  like  the  directors  of  this  company 
may  lie  trusted  to  set  about  building  them  up  again 
as  quickly  as  possible.  Tlie  preference  shares  are  fully 
protected,  and  should  be  worth  at  least  par.  On  the 
basis  of  last  year's  profits,  and  deducting  the  pre- 
lerence  dividend  (^^240, 000),  there  would  be  a  balance 
of  ;^930,ooo  for  ordinary  dividends  and  reserves.  Even 
jf  15  per  cent.  (;^90o,ooo)  is  paid,  the  new  ordinary 
shares  would  not  be  worth  more  than  2  to  2|,  so  that 
the  value  would  work  out  somewhere  between 
;^8  and  /Tg  los.  for  the  five  new  shares  which  will 
Tbe  exchanged  for  each  existing  share.  Of  course, 
profits  may  continue  to  increase,  especially  when  the 
Viscose  Co.  gets  into  full  swing,  and  there  will  be 
plenty  of  scope  for  speculative  possibilities,  but  the 
ordinary  shares  ought  to  yield  at  least  7I-  per  cent, 
.until  the  outlook  is  clearer. 


By-the-Way  War  Notes. 

Evidently  Germany's  Prussian  masters  are  eager  to 
"dazzle  the  Allies  by  their  rapid  progress  in  Russia. 
They  have  dictated  a  humiliating  peace  to  an  obsequious 
fragment  of  the  least  enlightened  section  of  the  Russian 
■people,  and  are  busy  seizing  wide  expanses  of  Polish 
and  Russian  territory.  'I"hey  have  also  taken  Rumania 
by  the  throat  and  forced  its  King  and  Government  to 
sign  a  humiliating  surrender  by  which  Bulgaria  is 
granted  the  Dobruja,  and  other  concessions  are  made  to 
Prussia's  Allies,  but  the  whole  trend  of  which  is  to 
establish  a  Prusso-Teutonic  domination  over  Southern 
Russia  and  the  Black  Sea,  with  tentacles  reaching  out 
into  Further  Asia.  TTie  knaves  even  fling  their  grapnel 
over  Afghanistan  as  if  they  were  already  masters  of 
its  destiny.  The  swagger  is  colossal,  and  indicative  of 
speedy  disappointment. 

For,  after  all,  this  Russian  "  conquest  "  is  little  more 
than  a. sort  of  sensational  "picture-show."  The  mar- 
vellous celerity  with  which  German  armies  seem  able 
to  progress  everywhere  in  the  Western  Provinces  of 
Russia,  to  capture  towns,  seize  war  material,  railways, 
depots,  and  so  forth,  is  calculated  to  bewilder  onlookers, 
but  all  is  not  quite  as  it  seems.  We  doubt  whether  the 
armies  now  alleged  to  be  pounding  over  that  frozen 
snow-clad  Russian  soil  are  much  more  than  skeleton 
-armies.^  Having  dissolved  by  help  of  their  emissaries 
-and  traitors  all  organised  Russian  forces,  the  land  lies 
defenceless,  so  that  a  handful  of  men  conveyed  on  a 
few  sledges,  perhaps,  may  suffice  to  hold  down  and  rob, 
just  for  the  moment,  any  district  aimed  at.  And  such 
conquest  may  hold  until  Russia  springs  anew  into  life 
and  asserts  her  manhood,  as  we  doubt  not  she  will. 
Meantime,  the  food  supplies  for  which  Germany  is 
-hunting  do  not  seem  to  be  forthcoming,  and  without 
food  the  whole  scaffolding  of  this  "  sword  "-conquest 
anust  soon  fall  to  the  ground.     Wc  have  said  all  along 


that  little  food  was  available  anywhere  within  reach  in 
Western  Russia,  and  we  still  believe  that  information 
to  be  correct.  But  even  if  food  did  exist,  how  is  it 
going  to  be  collected  and  sent  back  into  Germany? 
It  cannot  go  by  the  Bosphorus,  and  although  th<S 
Danube  is  now  wholly  in  Austro-German  hands,  its 
navigation  against  the  stream  will  be  neither  easy  nor 
swift.  In  Russia,  Galicia  and  Poland  the  railways  are 
more  or  less  interrupted  and  disorganised,  so  that  the 
food  could  be  sent  on  but  slowly,  and  in  the  meantime 
the  occupying  German  troops  have  themselves  to  be 
fed. 

The  next  three  or  four  months  should  enlighten  us  on 
this  question,  and  it  is  unnecessary  to  dwell  on  it 
further  now  except  to  make  one  observation — territories 
seized  and  overrun  as  portions  of  Russia  and  all 
Russian  Poland  now  are  sure  to  become  a  curse  to  the 
conqueror.  Aggression  brings  its  own  chastisement  in 
destroying,  or  more  or  less  seriously  weakening  for 
years,  the  oppressed  country's  productive  capacity.  Its 
invaders  are  like  locusts  eating  everything  up.  We 
here  have  hardly  yet  begun  to  realise  what  the  devour- 
ing waste  of  war  implies,  or  what  the  after-paralysis 
means.  War  is  like  a  fire  on  a  heather-clad  hillside, 
leaving  only  blackened  stumps  when  it  has  passed,  and 
never  has  war  been  more  destructive  than  during  the 
past  three  and  a-half  years.  Put  German  success  at  its 
highest,  and  it  can  only  bring  desolation  within  the  two 
robber  empires  themselves.  In  all  probability  the 
devastation  will  be  such  as  has  not  been  witnessed -in 
any  part  of  the  world  for  centuries.  And  the  Germans 
have  no  friends  anywhere  from  whom  help  could  come. 

People  sometimes  lament  over  our  past  blunders, 
failures,  mistakes,  and  so  on.  That  is  foolish.  Possi- 
bly all  might  have  been  different  in  the  East  had  we 
stuck  to  the  Dardanelles  enterprise  until  we  had 
forced  our  way  through  to  Constantinople  and  the 
Black  Sea — and  possibly  it  might  not.  For  we  still 
besiege  the  enemy  so  that  his  distempered  rejoicings 
over  his  alleged  victories  can  mean  nothing  substantial 


New  Zealand. 


A  Wealthy  Country,  Splendid  Climate,  Fertile 
Soil,  Plenty  of  "Water. 

An  Ideal  Country  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  population,  has  an 
annual  export  of  raw^  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IRON,  TIMBER, 
GUM.  GOLD  AND  SILVER.  Total  yield  of  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  have  been  advanced 
by  Govern  ment.to  Farmers  and  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 

The  Railways,  3,000  miles,  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State. 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  new 
country,  New  Zealand  offers  solid  advantages. 
Excellent  Steamship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Shipping  Company, 
Limited,  and  the  Federal  and  Shire  Lines. 


Fall  information  is  supplied  iiee  by 

THE  HIGH  COMMISSIONEB  FOB  NEW  ZEALAND. 

413-416,  STRAND,  W.C  2. 


246 


XTbe  Jnveetots'  IRevtew. 


March  9,   1918. 


to  him.  Even  his  vaunted  breach  in  the  Russian  front 
has  not  set  him  free,  as  he  alleges,  to  go  careering 
over  Eastern  Russia  and  Siberia,  to  hand  back  to  the 
decrepit  Turk  and  his  Kurds  a  devastated  Armenia, 
or  to  assert  his  mastery  over  any  part  of  Asia  Minor. 
We  have  only  to  look  abroad  over  the  entire  field  of 
war  and  to  remember  that  an  Ally  far  more  resource- 
ful, far  more  loyal  and  powerful  even  than  Russia,  is 
now  arming  with  the  utmost  speed  to  enter  the  lists  on 
our  side — ay,  two  Allies,  for  Japan,  which  has  proved 
to  be  one  of  the  most  loyal  of  existing  empires,  may 
soon  be  in  Siberia,  its  armies  there  to  form  a  rally- 
ing point  for  patriotic  Russians — to  be  confident  that 
we  have  only  to  quit  us  to  the  end  like  men  to  make 
the  victory  sure  and  complete.  Germany  is  not  hav- 
ing her  own  way  at  all,  or  securely,  at  any  point. 
Her  exhaustion  is  already  so  great  as  to  render  the 
continued  sustenance  ^  of  Prussian  militarism  well- 
nigh  impossible,  even'  if  her  confidence-trick  expert 
treaty-devisers  were  to  patch  up  a  peace  now  with  us 
all. 

Fighting  goes  on  in  the  West  as  far  as  the  weather, 
which  has  been  most  untoward,  allows,  and  the  raid- 
ing and  counter-raiding  seem  to  be  increasing  in  fury 
and  bitterness.  That  the  Germans  should  be  train- 
ing their  troops  for  a  grand  assault  in  this  fashion 
is  what  we  might  expect,  and  there  is  nothing  what- 
ever in  their  exhibitions  to  disquiet.  All  the  Allies 
are  kept  on  the  qui  vive,  and  it  is  well  they  should  be. 
Above  all  is  it  well  that  we  should,  for  the  present, 
abstain  from  organising  great  enveloping  movements 
or  assaults,  and  ambitious  efforts  to  penetrate  the 
enemy's  lines  such  as  that  which  so  nearly  became  a 
complete,  although  it  could  by  no  possibility  have  been 
a  final,  victory  before  Cambrai.  Surely  our  policy  is 
to  hold  the  enemy  in  still,  to  organise  and  tune  up  the 
temper  of  our  troops,  meanwhile  worrying  him  as 
much  as  we  possibly  can  without  entering  into  any 
enterprise  which  might  cost  us  the  loss  of  many  men. 

Apparently  the  Germans  seem  at  the  moment  most 
bent  upon  breaking  through  the  lines  held  by  the  French, 
and  their  fiercest  onslaughts  have  been  directed  against 
sections  of  the  lines  in  Champagne  and  Alsace  during 
the  past  ten  days.  Possibly  they  think  that  France 
is  exhausted  sufficiently  to  be  now  more  easily  broken  ; 
but,  if  so,  the  result  of  the  fighting  has  done  nothing 
to  confirm  that  view.  Every  assault  has  been  repelled, 
and  counter-attacks  have  inflicted  severe  punishment 
upon  the  enemy.  Doubtless  he  will  try  again,  and  at 
other  places,  as  in  Belgian  Flanders,  where  their  recep- 
tion has  been  warm  enough,  but  we  are  ready.  And 
every  week  increases  our  mastery  in  the  air,  where 
some  of  the  most  decisive  fighting  of  all  the  war  may 
be  looked  for  this  season. 

By  what  process  Sir  Eric  Geddes  manufactures  his 
"curves"  we  cannot  fathom,  but,  if  there  are  any 
curves  at  all,  the  latest  facts  about  the  sinking  of 
British  merchant  ships  seem  to  show  that  they  go  up, 
not  down.  Taking  the  Times'  averages,  the  sinkings 
of  vessels  of  1,600  tons  gross  and  over  averaged  12.2 
per  week  in  the  four  weeks  ended  March  2.  In  the 
previous  four  weeks,  ended  February  2,  the  average 
was  7.5.  For  December  the  average  went  up  to  15, 
but  in  November  it  was  only  10.5.  This  looks  rather 
a  wriggly  curve,  and  the  exhibit  is  not  much  more 
cheerful  if  the  sinkings  of  craft  of  all  tonnages  are 
included.  That  gives  an  average  of  19.7  for  the  past 
month  compared  with  12.5  for  January,  19.9  for 
December,  16.75  ^or  November,  18.4  for  October,  and 
20  for  September.  The  number  of  ships  entering  and 
clearing  was  slightly  larger  last  month,  or  18,286 
compared  with  18,160  the  month  before,  but  the  differ- 
ence is  too  insignicant  to  affect  a  curve  or  proportion 
of  losses,  and  it  is  a  growing  popular  suspicion  that 
not  only  are  we  makinp-  little  or  no  headway  in  destroy- 
ing the  under-water  pirate  craft  of  the  enemy,  but  that 
there  must  still  be  traitor  agencies  in  this  country  who 
serve  the  enemy.  Is  it  wholly  because  the  sea  bottom 
in  the  Irish  Channel  is  suitable  for  submarines  that 
such  performances  as  the  sinking  of  the  armed  mer- 


cantile cruiser  Calgarian  could  be  accomplished  with 
such  ease  and  leisure?  The  loss  of  life  was  small, 
"  only  "  48  out  of  610,  but  the  crime  was  none  the  less 
infamous  for  that,  and  suspicion  grows  that  if  not 
bases,  at  any  rate  enemy  centres  of  intelligence,  exist 
around  Ireland.  It  is  to  be  hoped  that  the  First  Lord 
of  the  Admiralty  will  devote  less  attention  to  the  manu- 
facture of  his  "  curves,"  and  bestir  himself  to  take 
more  strenuous  measures  to  end  the  scourge.  Last 
week  1 1  British  ships  of  1 ,600  tons  and  over  were 
sunk,  and  six  smaller  ships.  Five  ships  were  also 
returned  as  having  been  unsuccessfully  attacked ;  the 
numbers  returned  of  12  large  and  six  escapes  each  in- 
clude one  attacked  but  not  reported  in  the  previous 
week.     No  fishing  vessels  were  sunk  last  week. 

Les  Boches  treated  London  to  a  surprise  air  attack 
on  Thursday  night.  It  should  give  a  rousing  wind-up 
to  the  "  Tank  Week  "  campaign,  and  spur  us  all  on 
to  give,  as  well  as  lend,  to  the  best  of  our  capacity. 


Insurance    News. 


A  considerable  falling-off  in  the  amount  of  new  busi- 
ness done  by  the  Scottish  Widows'  Fund  Life  Assur- 
ance Society  is  disclosed  in  the  report  for  1917.  The 
new  business  completed  consisted  of  2,302  policies  for 
;£'i,422,389,  a  reduction  of  ;^4i 2,806;  the  nett  new 
.sums  assured  amounted  to  ;^i,354,889,  or  ^185,306 
less  than  in  1916.  Claims  arising  by  death,  including 
claims  arising  from  the  war,  were  considerably  below 
the  corresponding  amounts  for  191 5  and  1916,  and  not 
greatly  in  excess  of  the  normal  experience,  and  the 
amount  was  well  within  the  amount  provided  for  in  the 
valuations,  the  actual  claims  being  about  83  per 
cent,  of  the  amount  allowed  for.  The  total  was 
;^i,i8o,736,  or  ;^i69,7i8  less  than  in  1916,  a  very  satis- 
factory experience.  There  was  an  increase  of  4s.  5d. 
per  cent,  in  the  average  gross  rate  of  interest  realised 
during  the  year  on  the  funds,  at  ;^4  i6s.  6d.  per  cent. 
Expenses  of  management  and  commission  amounted  to 
£137,522,  representing  9.62  per  cent,  of  the  premium 
revenue,  or  only  5.83  per  cent,  of  the  total  revenue. 
With  a  total  income  of  ;6"2i359.077.  and  outgoings  of 
;^  1 ,930,877,  there  was  a  surplus  on  the  year's  opera- 
tions of  ;^r428,20o.  After  transferring  ;;£,"5oo,oo0  to  an 
investment  reserve  fund,  the  funds  at  the  end  of  the 
3'ear  amounted  to  ;^22,383,7i4. 

Substantial  progress  is  again  shown  in  the 
report  of  the  Britannic  Assurance  Comjwny, 
the  life  premium  income  for  1917  being  ;^i,466,i48 
— an  increase  of  £72,(^22 — while  the  gross  income 
from  all  sources  was  ;^i,677,857,  an  increase 
of  ;^93,956.  After  deducting  the  total  outgo  of 
;^"'i,37i,oi7,  the  surplus  on  the  year's  accounts  was 
;^'3o6,840,  out  of  which  ;^S  1,667  has  been  written  off 
Stock  Exchange  securities  and  other  investments, 
leaving  a  nett  addition  to  the  funds  of  ;^255,i73.  In 
the  ordinary  branch  the  premium  income  showed  an 
increase  of  ;^23,i70  at  ;£j'287,864,  while  claims  paid 
amounted  to  ;^~2io,  136,  inclusive  of  surrenders.  In 
the  industrial  section  there  was  an  increase  in  premiums 
of  ;^49)752  at  ;^i,i78,283,  while  the  claims  paid 
amounted  to  ;^597,949i  inclusive  of  surrenders.  After 
making  full  provision  for  all  policy  liabilities  on  the 
same  bases  of  mortality  and  interest  as  those  adopted 
in  the  previous  year,  the  resulting  surplus  was 
;^i04,444,  which  is  being  carried  forward.  Share- 
holders are  to  receive  the  usual  dividend  at  the  rate  of 
10  per  cent.,  tax  free. 

During  191 7  the  Sun  Life  Assurance  Society  issued 
2,296  policies  for  ;^i,486,642,  all  within  the  United 
Kingdom,  the  nett  amount  retained  being  ;^i,372.i42- 
The  total  premium  income  was  ;^i, 05 1,673,  a"<^  '"* 
terest  produced  ;^385,975.  Claims  were  well  within 
the  expectation,  and  amounted  to  ;£^687,399,  including 
reversionary  bonuses.  The  life  assurance  fund  was 
raised  by  :^538,6oi  to  ;^9,969,7oq. 

A  surplus  of  ;^i;46,3i4  is  disclosed  by  the  annual 
valuation  of  the  ordinary  branch  business  of  the  Refuge 
Assurance  Company  as  at  December  31  last,  this  result 


AFarch  9,    1 91 8. 


XTbe  3nv>e8tot8'  IRevtew. 


247 


being  arrived  at  after  transferring-  ;^'5o,ooo  to  the  in- 
vestments reser\'e  fund,  and  including  ^"371 ,  162  brought 
forward.  No  profits  are  declared  divisible,  the  whole 
surplus  being  carried  forward  as  a  contingency  fund. 
With-profit  policies  which  become  claims  during  1918 
will  be  allotted  an  interim  bonus.  In  the  industrial 
branch  the  surplus,  after  transferring  ^^30,000  to  in- 
vestment reserve,  writing  ;^io,ooo  off  furniture,  and 
j^io,ooo  off  investments  was  ^87,735,  which  is  carried 
forward.  In  both  branches  the  aggregate  premium  in- 
come was  ;^3, 883,476,  an  increase  of  ;£'i7o,i95.  The 
total  funds  at  ;^i4,768,ii3  showed  an  increase  during 
the  year  of  ;^'i,o3g,276.  Including  ;^i, 400,000  in- 
vested during  191 7,  the  company  has  participated  in 
the  War  Loans  to  the  total  extent  of  3J  millions. 

The  chairman  of  the  Legal  and  General  Life  Assur- 
ance Society,  at  the  meeting  on  Tuesday,  referred  to 
a  suggested  extension  of  the  company's  powers,  .so 
as  to  enable  the  directors  to  undertake  all  classes  of 
insurance.  Fire  insurance  will  probably  be  the  first 
new  kind  of  business  to  be  undertaken,  but  there  is 
apparently  no  intention  to  embark  on  marine  insur- 
ance, at  any  rate  for  the  present.  Shareholders  have 
been  approached  on  the  subject  of  the  new  powers, 
and  only  a  small  minority  expressed  disapproval.  Dur- 
ing the  past  year  satisfactory  results  were  achieved, 
the  total  nett  premium  income  of  ;6^  1,069, 973  showing 
an  increase  of  ;^i8,86i  over  the  figures  for  1916.  Nett 
new  business  for  ;^i,868,85i  was  completed,  produc- 
ing nett  new  premiums  of  ;^i03,496.  Nett  claims  by 
death  of  ;^654,953  included  ^^132, 874  due  to  the  war, 
the  total  claims,  including  bonus  additions  of  ;£i48,878, 
amounting  to  ;^853,97o.  By  the  addition  of  ;£^i8i,gg9 
the  total  funds  have  been  raised  to  ;^i  1,760,683. 
Omitting  the  investments  in  reversions,  the  funds 
yielded  an  average  rate  of  4f  per  cent. 

An  increase  of  no  less  than  ;^423,g87  at  ;^3,g88,83i 
is  shown  in  the  total  life  premium  income  of  the  Pearl 
Assurance  Company  for  1917.  In  the  ordinary  branch 
the  premiums  amounted  to  ;^852,448,  which  was 
;^i68,098  greater  than  that  of  the  previous  year;  the 
number  of  policies  issued  in  this  branch  was  35,726, 
assuring  ;^3,355,i39,  and  producing  a  new  annual 
premium  income  of  ;^2 17,332.  In  all  branches  of  the 
business  the  total  income  came  to  ;^4,42i,843,  being 
tin  increase  of  ;^4g5,9i6.  Life  claims,  endowments, 
accident  and  employers'  liability  claims  absorbed,  with 
tonuses  and  outstanding  claims,  ;£^i,769,675.  At 
;^i2, 739,994  the  total  funds  show  an  increase  of 
j^i, 175,022.  The  company's  investments  have  been 
almost  exclusively  British  War  Loan  securities,  which 
now  exceed  ;^3,ooo,oc>o.  The  annual  valuation  dis- 
closed a  surplus  of  ;£^302,657,  including  ;^io2,936 
brought  forward.  The  directors  carry  ;^ioo,ooo  to 
reserve,  and  a  similar  amount  to  the  investment 
reserve,  to  meet  the  fall  in  the  value  of  securities. 
A  sum  of  ;£20,ooo  is  added  to  the  pension  fund, 
;^2i,ooo  is  to  be  paid  to  the  ordinary  shareholders, 
and  the  balance  of  ;^6i,650  carried  forward. 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 

Period. 


Gross 
Profit. 


The  Standard  Bank  of  South  Africa,  Ltd.,  announce  that  a 
branch  was  opened  on  the  ist  instant  at  Kiisumu  (Port  Florence), 
the  terminus  of  the  Uganda  Railway  on  Lake  Victoria  Nyanza. 

The  total  number  of  War  Savings  Certificates  issued  to  the 
end  of  February,  igi8,  was  164,600,000,  and  the  total  number 
repaid  to  the  same  date  was  5,146,000.  The  latter  figure  in- 
cludes 750,000  certificates  which  were  surrendered  in  subscrip- 
tion to  other  war  securities. 

When  a  Hun  bomb,  weighing  go  lbs.,  is.  dropped  from  a 
height  of  15,000  ft.,  by  the  time  it  reaches  the  ground  it  is 
travelling  at  the  rate  of  nearly  1,000  ft.  per  second,  and  its 
momentum  is  over  530  tons.  No  wonder  that  it  smashes 
through  concrete  floors,  if  by  bad  luck  it  gets  a  direct  hit! 

We  understand  that  an  influential  committee  has  been 
formed  to  represent  British  financial  and  mining  interests  in 
Russia,  and  that  among  others  the  following  gentlemen  have 
been  invited  to  become  members  of  the  committee,  most  of 
whom  have  signified  their  acceptance  :  Lord  Goschen,  Lord 
George  Hamilton,  Sir  William  Plender,  Messrs.  E.  Mackay 
Edear.  F.  H.  Hamilton,  C.  J.  Cater  Scott,  J.  Whishaw,  and 
Leslie  Urquhart.  The  offices  of  the  committee  are  at  7, 
Cracechurch   Street,  E.C. 


Aberdeen  Jute  Co. . .  (Jan.) 

Do Prev. 

Bournemouth    and    Poole 
Elect.  Supply.. (Dec) 

Do Prev 

Bradley's(Cbepstow  Place) 
(Jan.; 

Do Prev 

Bristol  and  South   Wales 
Rly-WaggonCo  (Dec.) 

Do Prev 

Canadian    and     Amer  can 
Mortgage    and    Tru^t 

Co (Dec.) 

Do Prev. 

Cash  and  Co (Jan.) 

Do Prev. 

City  Offices  Co (Dec.) 

Do Prev. 

Cleghorn  and  Harris  (July) 

Do Prev. 

Fleming,  Reid,  &  Co. (Dec  ) 

Do Prev. 

Gt.  Western  Collry..  (Dec.) 

Do Prev. 

International   Sponge  Im- 
porters   (Dec  ) 

Do Prev. 

Isle  of  Man  Rly.  Co.  (Dec.) 

Do Prev 

Jeremiah  Rotherham  (Jan.) 

Do Prev 

John  Moir  and  Son  (Dec.) 

Do Prev 

Liberty  and  Co   ....  (Jan  ) 

Do Prev. 

Manch'r  Royal  Exchange 
(Mar.; 

Do Prev 

Newcastle     and     District 
Elect.  Lighting. .  (Dec. 

Do Prev 

Northmptn.  Electric  Light 
and  Power  ....(Dec.) 

Do Prev. 

Penarth  Pontoon  Shipway 
and     Ship     Repairing 

Co (Dec. 

Do Prev 

Read  Bros (Dec 

Do Prev 

Rio  Claro  Rly.  &  Invstmt 

Co (Dec. 

Do Prev 

Rushden      and      District 
Electric  Supply  (Dec. 

Do Prev 

Switzer  and  Co (Jan- 
Do Prev 

Thos.  Tilling  (Dec. 

Do Prev 

Tyneside    Tramways    and 
Tramroads  ..(J- Dec 

Do Prev 

United  States.  Inv.  Crpin 
(Dec 

Do Prev 

W.  B.  Reid&  Co... (Dec. 
Do Prev 


80,750 
70,960 


35950 
36,980 


48.330 
49.310 


69  090 
61,370 


160,320 
203,680 

41.300 
39.540 
46.510 
40,460 


48.530 
38,610 
67,740 
37.790 

98,050 
73.420 

101,350 
95.880 

46,080 
37.390 


78.370 
50,640 

134.550 
132,370 

4.500 
3.380 


Nett 
Profit. 


32.350 
33.210 


i 

9.940 

12,380 

35.850 
35.210 

69.350 


19.150 
18,720 


26,030 

25.130 

8.590 

7,810 

11,630 

13.130 

53.530 

47.800 

69,040 

65.270 

121,300 

181,240 

18,090 
16,830 
18,130 
17,010 
'87.370 
137,020 
27,830 
20,940 
55.960 
35.510 

75.700 
55.800 

39,420 
39.360 

12,300 
10,340 


15.920 
17.450 
39.940 
24.740 

99.430 
97.800 

1.340 
1,240 
12,260 
11,830 
39.0I0 
83.390 

9.800 
6,220 

19,860 
20,670 
111,770 
72,440 


Total 

Ne- 

serves 


£ 
20,000 
18,000 

51.120 
46,820 


Divi- 
dend. 


% 

14 

121 

6 
6 


100,000       7j 
70,000       5 


65,000 
65,000 


108,000 

108,000 

16.000 

15,000 


3,000 

3.000 

102,000 

88,000 

100,000 

100,000 

7.220 

6,160 

37.000 

37  900 

161,320 

151.320 

22  000 

22,000 

400,000 

378.110 

34,800 
34,800 

50,000 
20,770 

10.500 
10,500 


25.000 
22.500 
6r.ooo 
50,000 


nil 

nil 
55.000 
52  000 
20,500 
20,500 

29,500 
25,830 

17.500 

17.500 

290,000 

270.000 


10 
lb 


10 

10 

7 

7 

5 

5 

nil 

nil 

15 

15 

15 

20 

600 

500 

5 

5 

17 

15 

15 

10 

20 

10 

5 
5 

2* 
24 

6i 
6i 


10 
10 
12 

10 

5 
5 

5 

5 

8* 

8i 
10 
12 

6 
3 

7 

7 

10 
10 


Carried 
For- 
ward. 


£ 

2,960 
2,300 

2,080 
2,260 

44.970 
46.370 

4.150 
3.720 


12,680 

6,780 

3.990 

2,840 

2,330 

2,560 

40,230 

27,500 

44.920 

,s9.620 

53,870 

71,570 

1,300 

1,160 

2,580 

1,600 

130,110 

109,110 

38,360 

16,330 

8,560 

6, 120 

56,780 

34.210 
13,250 

29,980 

1,670 
2,110 


3.130 

2,640 
17,120 
13,180 

11,430 
10,590 

130 
90 

14,410 

13.950 
28,460 

49.430 

1,310 
660 

2,860 

3,170 

33,810 

26,450 


It  is  stated  by  the  El  Diario  of  Buenos  Aires  that  President 
Irigoyen  has  decided  to  devote  all  the  available  resources  df 
Argentina  to  the  support  of  the  allied  armies  and  civilian  popu- 
lations, and  the  journal  adds,  "  the  new  policy  removes  us 
more  and  more  fiom  neutrality.'' 


AUSTRALIAN 
MUTUAL  PROVIDENT 

fsw.         SOCIETY.         'S''^. 

The    Largest    Mutual    Life    Office    in    the    Empire. 

Funds,  £37.000,000.  Annual  Income  £4,700,000. 

MODERATE     PREMIUMS. 

LIBERAL     CONDITIONS. 

WORLD-WIDE     POLICIES. 

Every  Year  a  Bonus  Year.    Whole-life  Policies,  20  years  in  force,   show 

average  increase  of  the  sum  assured  by   Bonus  exceedinK   50  per  cent. 

Endowment  Assurance  Results  also  Unsurpassed- 

37,  Thread  needle  St.,  London,  E.C.  2. 


248 


Zbc  Jnveetors'  IRevtew. 


March  9,   1918. 


PRUDENTIAL  ASSURANCE  COMPANY 


Chief    Office: 

HOLBORN    BARS,   LONDON,  E.C.I. 


LTD. 


SUMMARY    OF    THE    REPORT 

Presented  at  the    Sixtyninth   Annual  Meeting,  held   on    March  7th,   1918. 


ORDINARY  BRANCH.— The  number  of  policies  issued  during 
the  year  was  56,502,  assuring  the  sum  of  £6,951,269,  and 
producing  a  now  annual  premium  income  of  £567,472.  The 
premiums  received  were  £5.495,205,  being  an  increase  of 
£265,035  over  the  year  1916. 

The  claims  of  the  year  amounted  to  £4,852,409,  of  which 
£398,385  was  in  respect  of  War  Claims.  The  number  of  deaths 
was  14,629.  The  number  of  endowment  assurances  matured 
was  28,430,  the  annual  premium  income  of  which  was  ^152,559. 

The  number  of  policies  including  annuities  in  force  at  the  end 
of  the  year  was  934,075. 

INDUSTRIAL  BRANCH.— The  premiums  received  during  the 
year  were  £9,376,858,  being  an  increase  of  £479, 135. 

The  claims  of  the  year  amounted  to  £4,352,031,  of  which 
£1,109,240  was  in  respect  of  65,665  War  Claims.  The  bonus 
additions  included  in  the  claims  amounted  to  £38,710.  The 
total  number  of  claims  and  surrenders,  including  22,078 
endowment  assurances  matured,  was  402,635. 

The  number  of  free  policies  granted  during  the  year  to  those 
policyholders  of  five  years'  standing  and  upwards  who  desired  to 
discontinue  their  payments  was  56,880,  the  number  in  force 
being  2,009,872.  The  number  of  free  policies  which  became 
claims  was  5 1 ,290. 

The  total  number  of  policies  in  force  in  this  Branch  at  the  end 
of  the  year  was  21,730,468;  their  average  duration  exceeds 
thirteen  and  three-quarter  years. 

The  War  Claims  of  the  year,  in  both  Branches,  number 
70,488,  and  amount  to  £1,507,625.  The  total  paid  up  to  the 
present  on  this  account  since  the  outbreak  of  War  exceeds 
£3,400,000  in  respect  of  over  160,000  claims. 

GENERAL  BRANCH.— Under  the  Sickness  Insurance  Tables 
the  premiums  received  during  the  year  were  £6,721,  and  £3,744 
was  paid  in  Sickness  claims.  Sinking  fund  policies  have  been 
issued  assuring  a  capital  sum  of  £134,850,  and  producing  an 
annual  income  of  £2,663. 

The  Company  is  now  empowered  to  act  as  Trustee  or  Executor, 
and  during  the  year  has  commenced  to  transact  this  business. 

A  very  considerable  amount  of  Aircraft  (Personal  Injury) 
Insurance  has  been  undertaken,  with  results  which  up  to  the 
present  have  been  highly  satisfactory.  The  total  amount  of 
premiums  received  on  these  contracts  was  £11,003,  and  the 
claims  paid  during  the  year  amount  to  £627.  In  view  of  the 
difficulty  of  gauging  the  value  of  the  unexpired  risks  on  existing 
Sickness  and  Aircraft  Policies  it  has  been  decided  to  retain  the 
whole  of  the  General  Branch  Fund  of  £38,244  in  reserve  against 
liabilities. 

(BThe  assets  of  the  Company,  in  all  branches,  as  shown  in  the 
balance  sheet,  are  £107,283,371,  which  after  reduction  of 
the  balance  of  £3,487,500  owing  in  respect  of  the  advance  from 
our  Bankers  for  purchase  of  War  Loan  shows  an  increase  of 
£4,672,125  over  1916. 

In  the  Ordinary  Branch  the  surplus  shown  is  £1,584,540, 
including  the  sum  of  £218,240  brought  forward  from  last  year. 
Out  of  this  surplus  the  Directors  have  added  £400,000  to  the 
Investments  Reserve  Fund,  which  stands  as  at  31st  December, 
1917,  at  £2,400,000,  and  £178,412  has  been  carried  forward. 

During  the  past  two  years  an  interim  bonus  of  £1  per  cent,  per 
annum  has  been  paid  on  all  participating  policies  which  became 
claims  either  by  death  or  maturity,  and  the  Directors  feel  that  the 
existing  policyholders  are  equitably  entitled  to  a  bonus  of  equal 
amount  on  any  distribution  of  profit.  The  Contingency  Fund, 
which  stands  at  £1,500,000,  was  set  up  for  the  purpose  of 
safeguarding  the  rights  of  holders  of  participating  policies.  The 
Directors  now  propose  to  transfer  £1,000,000  from  this  fund, 


which,  together  with  the  amount  available  from  the  profits  of  th» 
year,  will  enable  them  to  allocate  a  reversionary  bonus  in  respect 
of  the  years  1915,  1916  and  1917  of  £1  per  cent,  per  annum  on  the 
original  sums  assured  under  all  participating  policies  which  wer& 
in  force  on  the  31st  December,  1917. 

The  bonus  so  allotted  will  not  for  the  present  carry  the  option  of 
surrender  for  cash,  but  facilities  will  be  aflorded  enabling  policy- 
holders who  desire  to  obtain  National  War  Bonds  by  means  cf  our 
special  War  Bond  Policies  to  apply  such  portion  of  the  bonus  as 
may  be  available  towards  payment  of  the  necessary  premiums. 
For  this  purpose  the  rate  of  discount  adopted  will  be  the  British 
Offices'  Table  of  Mortality,  with  interest  at  4J  per  cent. 

In  the  Industrial  Branch  the  su  plus  shown  is  £616,260, 
including  the  sum  of  £184,530  brought  forward  from  last  year. 
Out  of  this  surplus  the  Directors  have  added  £335,623  to  the 
Investments  Reserve  Fund,  which,  after  deducting  £35,623, 
representing  realised  loss  on  investments,  stands  as  at  31st  Deccm- 
ber,1917,at£l,7CO,000,nnd  £92,470  has  been  carried  forward. 

The  total  surplus  of  the  two  branches,  as  shown  by  the  valuation, 
is  £2,200,800,  and  £1,000,000  will  be  trans'erred  from  the 
Ordinary  Branch  Contingency  Fund,  thus  increasing  the  surplus 
to  £3,200,800.  Of  this  amount  £400,000  has  been  added  to 
the  Investments  Reserve  Fund  of  the  Ordinary  Branch,  and 
£335,623  has  been  added  to  the  Investments  Reserve  Fund  of 
the  Industrial  Branch,  £1,794,295  will  be  allrcated  to 
participating  policies  in  the  Ordinary  Branch  and  £400,000  to 
the  shareholders  in  accordance  with  the  Articles  of  Association 
of  the  Company,  leaving  £270,882  to  be  carried  forward,  namely 
£178,412  in  the  Ordinary  Branch  and  £92,470  in  the 
Industrial  Branch. 

The  provisions  of  the  Courts  (Emergency  Powers)  Act  continue 
to  affect  the  Company's  resources  adversely,  and  the  Special 
Reserve  has  been  maintained  at  £350,000.  The  large  increase 
in  the  outstanding  premiums  in  the  Industrial  Branch  is  partly  due 
to  the  inclusion  of  premiums  outstanding  on  p->licies  still  in  force  by 
reason  of  the  Courts  lEmergency  Powers)  Act.  It  is  impossible  to 
estimate  what  portion  of  these  outstanding  premiums  will  be 
eventually  received,  and  the  fund  cf  £350,000  is  in  the  first 
place  necessary  to  cover  any  loss  which  may  be  sustained  on 
account  of  non-payment.  The  fund,  however,  is  also  necessary 
to  provide  for  future  contingencies,  which  include  the  payment  of 
claims  and  the  continued  non-payment  of  premiums  on  all  policies 
which  may  come  under  the  Act.  During  ihe  past  year  the  losses 
due  to  the  operation  of  the  Act  have  been  very  considerable. 

The  Company  has  also  had  to  face  the  severe  depreciation  in 
the  value  of  investments,  and  has  continued  to  make  up  the 
difference  between  the  Ser\iee  and  civilian  pay  of  all  members  of 
the  staff  who  are  serving  in  His  Majesty's  fo  ces. 

Apart  from  the  Ordinary  Branch  Contingency  Fund,  and  in 
addition  to  the  reserves  held  against  the  liabili'ies  shown  by  thfr 
valuation,  an  amount  exceeding  £4,720,000  has  been  reservea  or 
canied  forward,  and  is  available  to  meet  depreciaticm  or  other 
contingencies. 

The  Balance  Sh  et  includes  over  £27,250,000  in  British 
Government  Securities  ;  this  represents  an  iter, ase  over  last  year 
of  about  £9  500,000. 

The  four  Prudential  Approved  Societies  have  during  the  year 
paid  to  their  members  at  their  own  homes  b  nefits  amounting  to 
£1,303,380,  making  a  total  amount  of  £7,044,956  paid  in 
this  way  since  the  commencement  of  our  National  Insurance  work. 
A  striking  feature  of  the  year  has  been  the  large  number  of  women 
admitted  to  membership,  the  number  being  232,787  as  compared 
with  92,298  males. 


March  9,    1918. 


^be  Jnvestots'  IRevlew, 


249 


BALANCE  SHEET  OF  THE  PRUDENTIAL  ASSURANCE  COMPANY,  LIMITED, 

Being  the  Summary  of  all  Branches,  on  December  31,  1917. 


LIABILITIES. 

ShArehoMeni' capital 

Lite  assurance  funil— Ordinary  Branch 

Llle  aMunincc  funil— Industrial  branch 

InBurairce  fund — General  Branch 

Inventnients  reserve  funds 

Continj^ency  fund       

Coiirt.<i(Kmcrnerc\  Powers)  Act  Hcserve  

Advanc    bv  Banliers  secured  on  £5,250,000  5  percent.  War 

Loan  192S-1947 

Claims  under  life  policies  intiinste<l  and  in  course  of  pay* 

ment 

Annuities  due  and  unpaid 

Balance  o(  bonus  under  Uf  e  poUdea  reserved  for  distribution 


£ 

B.  d. 

.     i.oco.coo 

.     49,3^9.826 

.     47,061.486 

38,244 

.        4.1CO,000 

1,500,000 

350,C00 

0  0 
9  10 
7    2 

1  10 
0  0 
0  0 
0    0 

.       3,487,500 

0    0 

391.616 

4,111 

587 

S  6 
0  0 
0    9 

£ir7.?B3.371 

9    1 

ASSETS. 

Mortgages  on  property  withfn  the  Unite<1  Kingdom 8,912,383    1    9 

Mortgagos  on  property  out  of  the  United  Kingdom 311.340  12    7 

Ixmns  on  parochial  and  other  public  rates         11.915,676  13    4 

Loans  on  Life  interests         1,094.762  15  11 

Loans  on  Keversions 45.716  10    5 

Loans  on  stocks  and  Shares 184  390  17  10 

Loans  on  Company's  policies  within  their  surrender  values  2,651.642    1    7 

Loans  on  Personal  security Ail 

Loans  to  Educational  institutions  secured  on  income           ...  38.090    6    0 


Carried  forward 


...  £25,153.902  19    5 


ASSETS— COTi(i«u«<. 

Brought  forwani  ... 
rnvestmcnts : — 

Deposit  with  the  High  Court  (£17.122  14s.  Od.  tY 
Loan.  li;29-1947) 

British  Government  securities 

Bank  of  England  stock       

Municipal  and  county  securities,  United  Kingdom... 

Indian  and  Oolonial  Government  securities 

Colonial  provincial  securities      

Indian  and  Colonial  municipal  securities       

Foreign  Qovemment  securities 

Foreign  provincial  securities      

Foreign  municipal  securities      

nail  way  and  other  deljentures  and  debenture  stocks 
gold  and  sterling  bonds — Home  and  Foreign 

Railway  and  other  preference  and  guaranteed  stocks 
shares         

Kailwiiy  and  other  ordinary  stocks  and  shares 

Kent  charges 

Freehold  ground  rents  and  Scotch  feu  duties 

Leasehold  ground  rents 

House  property        

Lite  interests , 

Keversions     

Agents' balances         

Outstanding  premiums         

Outstanding  interest  and  rents      

Interest,  dividends  and  rents  accrued  but  not  payable 

Bills  receivable 

Cash  1 — On  deposit      

In  hand  and  on  current  accounts  


£         •. 

d. 

...     25,163,902    19  6 

War 

16,080  19 

1 

...      27,242,467    1 

5 

299.779    5 

9 

...      2,033.855    4 

9 

...      6,313.195    4 

1 

...       1,376,963  18 

8 

...      3,537,658    9 

1 

...      6,927,706  19 

5 

379,871    5 

0 

...       2,701,862    6 

8 

and 

...     12,739,590    3  11 

and 

...       3,285.471    2 

8 

...      2,933,576  15 

2 

632,738  18 

2 

4,783.030    0 

0 

9,206  14 

0 

...       4,546.453  12 

9 

34,626  14 

6 

...       1,143,188  14 

1 

8.371  13 

U 

943,300    2 

» 

263,250  19 

0 

485,941  11 

,*> 

Ail 

20,000    0 

0 

571,290  14  11 

£107,283,371    9 

1 

The  values  of  Stock  Exchange  securities  are  determined,  under  the  Articles  of  Association  of  the  Company,  by  the  Directors. 
Due  allowance  has  been  made  for  accrued  interest,  and  the  book  value  of  these  securities  as  set  forth  in  the  Balance  Sheet  stands 
considerably  below  cost  price.  A  careful  investigation  as  to  the  actual  saleable  value  on  31st  December,  1917,  compared  with  the 
book  value,  shows  that  the  Investments  Reserve  Funds  are  much  more  than  sufficient  to  meet  any  depreciation  of  the  permanent 
securities.  Terminable  securities  have  been  valued  o:i  a  basis  which,  with  Sinking  Funds  already  established,  provides  for  the 
equalisation  of  the  book  values  and  the  redemption  values  at  the  date  of  maturity. 

We  certify  that  in  our  belief  the  Assets  set  forth  in  the  Balance  Sheet  (having  regard  to  the  standards  indicated)  are  in  the  aggregate 

fully  of  the  value  stated  therein  less  the   Investments  Reserve   Funds  taken   into   account,  and  make  ample  provision  for  all   the 

liabilities  of  the  Company.     No  part  of  any  fund  has  been  applied  directly  or  indirectly   for  any  purpose  other  than  the  class  of 

business  to  which  it  is  applicable. 

THOS.    C.    DEWEY,    Chairman. 

i     n    Turvn/rr-coxT    ^  t  nr        ^  J-  BURN,  Actuary.  W.   EDGAR  HORNE,        )„•      .. 

A.  C.  THOMPSON,  General  Manager.  J,    ^    ^^y,  Secretary.  W.  T.  PUGH,  \D,reciors 

We  report  that  with  the  assistance  of  the  Chartered  Accountants  as  stated  below  we  have  examined  the  foregoing  accounts  and 
have  obtained  all  the  information  and  explaiations  that  we  have  required,  and  in  our  opinion  such  accounts  are  correct  and  the  foregoing 
Balance  Sheet  is  properly  drawn  up  so  as  to  exhibit  a  true  and  correct  view  of  the  state  of  the  Company's  affairs  according  to  the  best 
of  our  information  and  the  explanations  given  to  us  and  as  shown  by  the  books  of  the  Company.  No  part  of  any  fund  has  been  applied 
directly  or  indirectly  for  any  purpose  other  than  the  class  of  business  to  which  it  is  applicable. 

PHILIP  SECRET  AN, 
W.  H.  NICHOLLS, 

We  have  examined  the  Cash  transactions  (receipts  and  payments)  affecting  the  accounts  of  the  Assets  and  Investments  for  the 
year  ended  December  31st,  191 7,  an  1  we  tind  the  same  in  gooJ  order  and  properly  vouched.  We  have  also  examined  the  Deeds 
and  Securities,  Certificates,  &c.,  representing  the  Ass'ts  and  Investments  set  out  in  the  above  account,  and  we  certify  that  they 
were  in  possession  and  safe  custody  as  on  December  31st,  1917. 

19th  February,  1918.  DELOITTE.  PLENDER,  GRIFFITHS  &  Co..  Chartered  Accountants. 


[Auditors. 


Ietter6  to  the  EMtor. 


W.   CORY  AND  SON,    LTD. 

Dear  Sir, — Some  few  months  back  the  directors  sent 
out  a  circular  stating  some  friends  of  theirs  were  wil- 
ling to  purchase  the  holdings  of  shareholders  at  a  price 
slightly  above  the  quoted  market  value,  and  recom- 
mended the  shareholders  to  accept  same.  Perhaps 
some  of  your  readers  will  be  good  enough  to  explain 
why  the  directors  should  have  made  the  recommenda- 
tion, seeing  that  the  price  of  the  shares  to-day  is 
nearly  ;^i  above  the  figure  offered,  and  which,  unfor- 
tunately for  us,  we  accepted,  believing  the  directors 
had  the  shareholders'  interests  at  heart,  as  they  ought 
to  have  done.  On  the  surface  it  looks  as  if  some  ex- 
planation  at  least   is   required. — Yours  faithfully, 

March  6,  1918.  F.\ir  Pl.w. 


It  is  interesting  to  put  on  record  the  fact  that  an  aerial  mail 
service  will  start  between  New  York  and  Washington  on 
April  15.  A  new  stamp  of  24  cents,  or  about  is.,  will  be  issued 
for  this  service,  and,  added  to  the  ordinary  letter  postage,  will 
make  the  cost  of  air  service  transmission  of  a  letter  27  cents, 
or  IS.  ijd.  It  is  hoped  that  the  journey  between  New  York  and 
^L  Washington  will  be  made  in  two  hours.  For  a  time,  however, 
^K         the  aerial  mail  will  call  at  Philadelphia  en  route. 

^B  _  A  Melbourne  message  tells  us  that  the  number  of  war  pen- 

^B  sions  now  in  force  in  Australia  is  88,2t)g,  involving  an   annual 

^m  liabi'ity  of  ^^2,925, 175,  and  in  the  recruiting  scheme  it  is  now 

^K  proposed  to  pay   los.  per  recruit  into  the  fund  of  the  district 

^B  recruiting  committees.     These  will  allocate  the  money  as  they 

^K  think  best. 


Ans>veps  to  Correspondents. 

*.*  A  Key  to  theso  Answers  will  be  posted  early 
each  week  for  a  subscription  of  ONE 
GUINEA  per  annum,  lis,  for  six  months,  or 
6s.  9tl.  for  three  months. 
Deposits  against  future  Queries  ntay  be  lodgeit 
with  the  Publisher, 
A.  B.  Z. — We  rather  fear  they  will. 

S.  E.  N. — (i)  This  looks  rather  tempting,  and  might  make  a 
move  on  the  change  of  Government  policy.  (2)  Also  a  fair 
speculation. 

Civis. — Both  should  be  perfectly  good  and  secure. 
Jeffs. — Intrinsically  yes;    but  you  should  wait  a  while. 
G.  J.  L. — They  should  be  worth  attention  some  day,  but  not 
yet.     Wait. 

Wiser. — (i)  Purely  as  a  speculation;  they  seeiil  likely  to  rise. 
(2)  For  the  present  high  enough.  You  must  not  forget  that 
profits  are  inflated  by  war  conditions. 

F.  V. — (i)  It  is  a  pity  you  did  not  sell  a  week  ago.  They 
are  still  fairly  high,  but  may  recover  a  little  of  the  recent  drop. 
If  they  rise  about  three  points  sell.  (2)  These  it  seems  a  pity 
to  clear  out  of  now,  but  if  they  improve  it  would  be  as  well  to 
sell,  as  the  future  is  rather  uncertain. 

A.  G.  H. — There  is  no  good  achieved  in  doing  so.  If  you 
have  some  more  savings  presently,  use   them. 

R,  P.  S. — (i)  They  have  risen  on  the  report;  you  might  hold 
a  little  longer.  (2)  Having  done  well,  better  leave  them  alone; 
the  outlook  is  not  very  clear. 

G.  E.  W. — The  company  is  quite  a  good  one,  and  likely  to  ex- 
pand in  time,  but  there  seems  no  hurry  to  buy  just  now. 

France. — We  believe  so.  Probably  your  broker  would  help 
you. 

A.  S.  B.— The  sale  when  completed  should  mean  a  good  bonus. 
There  is  no  hurry  to  sell. 


250 


^be  Jnvestors'  IRevtew. 


March  9,   191B. 


In  these  days,  when  wide  circulation  of  papers 
through  the  post  is  impossible,  we  rely  on  new^i- 
paper  advertisement  to  remmd  our  friends  that  we 
look  to  them  to  do  what  they  can  to  make  the 
merits  of  the  Society  known  in  their  own  circles. 

The  Clprical's  strong  2i  per  cent.  Valuation, 
unbroken  Jionus  record,  and  attractive  rates  of 
premium,  carry  great  weight  with  everyone  who 
is  selecting  an  office  in  which  to  assure  his  life 
in  these  hazardous  times.  —  A.  D.  Besant, 
General  Manager  ajid  Actuary,  Clerical,  MedlCal 

and  General  Life  Assurance  Society,    15,   St. 

James's  Square,  S.W.  1 ,  London. 


SGOmSH  UNION  &  NATIONAL 

INSaRtNCE  COMPAIiy. 

ESTABLISHED    1824. 

ASSETS    exceed    iS1 1 ,000,000. 


"EXCESSTX 


FIRE  (INCLUDINC  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BUKCLARY,  CLASS  BREAKAGE,  TRANSIT  OF 
SECURITIES,  FIDELITY,  PROPERTY  OWNERS'  LIABILITIES,  HORSE  DRIVING 
ACCIDENTS,  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS  LIABILiTY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh:  35,  St.  Andrew  Square. 
London:  S,  Walbrook,  E.G.  4,  and  4,  St.  James'   St.,  S.W.  1. 

ASSURANCE    COMPANY 
LIMITED, 

Established  17S2. 

Head  Office;  PHIENIX  HOUSE,  KING  WIcLUW  STREET,  LONDON,  E.C.  4. 
Total  Assets  Exceed  £17,u00,000. 
Claims  Paid  Exceed   £08,000,000. 

Chairman— Rt.  Hon.  LORD  GliORGE  HAMILTON,  P.O.,  G.C.S.I 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

Lou  of  Profits  following  Fire,  Workmen's  Compensation,  Fidelity  Guamntec, 
Burglary,  Trustee  and  Executor,  &c. 
Prospectuses  and  Proposal  Forms  may  t>e  obtained  on  application  to  any  of 
the  Branch  Offices  or  Agencies,  or  to  the  Head  Offices 

General  ManaRer        -        SIR  GERALD  H.  RYAN. 

ROYAL  EXCHANGE  ASSURANCE. 

Inoorporatad  *.D.  1720.  Governur:  Vivim  Hugh  Smitli, Esq. 

FIRE.  LIFE.  SEA.  ACCIDENTS.  MOTOR-CAR.  PI/ATB 
GLASS.  BURGLARY.  ANNUIIIES.  FIDELITY  GUARAN- 
TEES. BMPLOYERS'  LIABIt^ITY.  LIVE  SIOCK.  THIRD 
PARTY.  LIFT,  BOILER  AND  MACHINERY.  TRUSTEE 
AND    EXECUTOR    BUSINESS. 

The  ^ecre'lry. }  "*"■■*  Office-ROYAL    EXCHANGE.    LONDON.  E.C.  3- 

THE  LIVERPOOL   &  LONDON  &  GLOBE 

INSURANCE    CO..    LTD. 

FIRE.        LliE.        ACCIUENr.        MARINE. 
Total  Assets  exceed     -       -       ■    £14,800,000 
Total  Claims  Paid  over      -       -    £86,000,000 


Head  Office: 
1,  Dale  Street,   1  iverpool. 


London  Chief  Office: 
1,  Corohiil,  E.G.  3. 


lEbe  3nv?e8tor6'  IRev>ie\v. 

Money    and   Credit   Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5 J  percent,  on 
Thursday,  April  5,  1917.) 


Norfolk  House,  Friday  Evening. 

The  Money  Market  has  shown  wonderful  placidity 
this  week.  Tremendous  pressure  has  been  brought  to 
bear,  on  London  especially,  and  throughout  the 
country,  to  obtain  massive  subscriptions  to  the 
National  War  Bonds,  and  many  millions  have  been 
gathered  in  every  day  of  the  week,  but  the  Money 
Market  goes  on  as  usual,  as  if  nothing  were  happening, 
and  sometimes  there  was  more  money  in  the  street 
than  borrowers  wanted,  so  that  day-to-day  loans  now 
and  then  hung  around  2J  per  cent.  Practically,  how- 
ever, the  quotations  for  call  and  .seven-day  loans  may 


be  given  respectively  al  3  and  3}  per  cent.,  and  towards 
the  end  of  the  week  more  borrowers  seemed  to  be 
about.  The  Bank  of  England,  in  the  beginning  of  the 
week,  announced  that  it  would  charge  to  its  own  cus- 
tomers 4  per  cent,  for  advances  instead  of  5J  per  cent. 
Discounts  were  steady  in  a  manner  all  week  at  a  bare 
3I  per  cent,  for  all  usances  up  to  four  months  in 
remitted  bills,  and  at  3I  per  cent,  steady  for  simil^ 
bills  of  six  months'  currency.  But  the  week,  alto- 
gether, was  remarkably  quiet. 

Glancing  at  the  Bank  return,  one  would  suppose 
that  the  Government  had  raised  ;i^ 1 1 ,000,000  odd  in 
order  to  turn  it  all  over  and  ;^  1,000,000  beyond  from 
its  own  deposits  to  the  other  dejx)sits.  That  is  how  it 
appears  in  the  figures,  and  no  doubt  the  Bank  had  to 
continue  raising  the  means  to  pay  by  temp)orary  loans 
a  large  proportion  which  found  their  way  directly  into 
the  pockets  of  the  public,  and  thence  back  to  the  Bank. 
Other  deposits,  in  fact,  are  ;^  12, 948, 000  up,  while 
Government  securities  were  ;^'i  1,387,000  down,  and 
Public  deposits  also  ;^i, 628,000  lower.  The  reserve 
has  risen  by  ;^'392,ooo,  and  is  now  ;^30, ^4,000.  Coin 
and  bullion,  however,  rose  by  ;^732,ooo  to 
;^6o,o85,ooo,  which  is  ;£'6, 075,000  more  than  it  wa*; 
at  this  date  last  year,  and  it  was  the  expansion  of 
;£,'340,ooo  in  the  note  circulation  which  prevented  the 
increase  in  the  reserve  from  being  larger.  Its  pro- 
portion to  liabilities  has  gone  down  i  per  cent.  t6 
17J  per  cent.,  because  of  the  nett  increase  of  over 
;^i  1, 100,000  in  the  liabilities  on  deposits. 

The  present  series  of  National  War  Bonds,  which 
mature  on  October  i,  1922,  1924,  and  1927,  will  be 
withdrawn  from  sale  on  March  30,  and  at  the  beginning 
of  April  a  new  series  will  be  issued,  redeemable  on 
April  I,  1923,  1925,  and  1928.  In  all  other  respects 
the  new  issue  will  be  the  same  as  the  present.  By 
the  end  of  this  month  the  existing  issue  will  be  six 
months  old,  and  the  average  annual  value  of  the  pre- 
miums payable  on  redemption  will  have  been  corre- 
spondingly increased.  It  is  obvious  that  the  bonds 
could  not  be  offered  for  sale  indefinitely,  since  the  yield 
automatically  increased  by  a  fraction  every  day.  Hence 
the  decision  to  issue  a  new  series  with  the  date  of  re- 
demption extended  by  six  months.  The  new  series  of 
bonds  will  be  less  valuable  than  the  old,  and  conse- 
quently the  price  of  the  latter  should  rise  to  a  premium. 
It  is  an  excellent  arrangement,  thoroughly  endorsed  in 
the  City,  for  it  will  have  the  effect  of  stimulating  sales 
of  the  bonds  between  now  and  the  end  of  the  month'. 

Mr.  Bonar  Law  announced  the  other  day  that  Lord 
Cohvyn  has  consented  to  act  as  chairman  of  tbe  com- 
mittee appointed  to  inquire  into  the  question  of  bank 
amalgamations.  The  other  members  will  be  : — Lord 
Cunliffe,  Captain  H.  Keswick,  M.P.,  the  Hon.  Rupert 
Beckett,  the  Hon.  Herbert  Gibbs,  Sir  Arthur  Haworth, 
Bart.,  Sir  Richard  V'assar-Smith,  Bart.,  Mr.  E.  Man- 
ville,  Mr.  H.  McGowan,  Sir  John  Purcell,  K.C.B.,  Mr. 
John  Rae,  and  Mr.  Douglas  Vickers.  The  terms  of 
reference  are  :  "  To  consider  and  report  to  what  extent, 
if  at  all,  amalgamations  between  banks  may  affect  pre- 
judicially the  interests  of  the  industrial  and  mercantile 
community,  and  whether  it  is  desirable  that  legislation 
shall  be  introduced  to  prohibit  such  amalgamations 
or  to  provide  safeguards  under  which  they  might  con- 
tinue to  be  permitted." 

Italy's  new  war  loan  has  been  a  great  success. 
None  of  the  earlier  issues  produced  more  than  3,000 
million  lire  (;^  120,000,000),  but  this  present  loan  ex- 
ceeds double  that  sum.  This  shows  how  Italy  has 
been  roused  and  knit  together  by  adversity.  Bravo 
Italy  ! 

The  great  Herr  Gwinner,  or  von  Gwinner,  we  believe 
he  is  now,  the  managing  director  of  the  Deutsche 
Bank,  is  on  the  stump  on  behalf  of  the  eighth  German 
War  Loan.  In  the  course  of  a  long  article  published 
in  the  Noi-ddeutschc  Allgemcine  Zeitung,  he  boasts 
that  German  credit  is  on  the  mend,  and  cites  the  rise 
in  the  German  rate  of  exchange  on  foreign  markets  as 
proof,  bold  man  that  he  is.  London,  he  says,  has 
"  lost  its  position  as  an  international  monetary  centre,',' 


March  9,    1918. 


She  Juvestors'  IRevicw. 


251 


,  and — inferentially,  we  presume — he  would  have  us  be- 
lieve that  Berlin  has  taken,  or  is  about  to  take,  its 
place.  For  the  German  people  appear  capable  of 
pinning  their  faith  on  any,  the  most  impudently  con- 
ceived, of  illusions.  He  went  on  further  to  "  bless  the 
British  blockade,"  which  has  taught  Germany  to  find 
substitutes  for  imported  commodities — such,  say,  as 
wool,  cotton,  leather,  and  steel,  we  suppose — which  it 
has,  we  are  glad  to  know,  so  effectually  deprived  her 
of.  No  wonder  the  German  people  is  presenting  "  a 
united  front  to  the  enemy,"  and  will  prove  its  spirit  by 
making  the  eighth  loan  a  great  success.  So  be  it,  and 
after  all,  Herr  von  Gwinner  is  in  taking  this  view  but 
little  more  braggart  in  his  attitude  than  our  own  loan 
''  booslf^rs."  The  more  is  the  pity,  for  we  are  not  yet 
reduced  to  paper  boots  and  shirts  or  to  sawdust  bread. 
But  what  did  the  German  Empire  get  in  the  way  of 
new  money  out  of  its  seventh  loan? 

Ihe  eighth  German  War  Loan,  amount  whatever 
can  be  raked  together,  will  be  open  for  subscription 
from  March  18  to  April  t8,  and  will  be  in  two  denomi- 
tiations,  5  per  cent,  bonds  and  4I  per  cent.  Treasury 
bonds,  both  to  be  sold  at  98.  Terms  of  redemption  to 
be  the  same  as  for  the  sixth  and  seventh  loans.  Terms 
of  conversion  into  this  loan  for  previous  issues  of  the 
same  styles  of  debt  will  be  also  as  before.  Will  the 
loan  be  on  sale  in  Russia? 

The  outstanding  movement  in  the  foreign  exchanges 
this  week  has  been  a  further  marked  depreciation  in 
the  sterling  value  of  the  lira,  the  quotation  being  42.70J 
lire  to  the  pound,  as  against  41.65  lire  last  week.  An 
imptovement  is  looked  for  in  the  Italian  exchange 
shortly  in  connection  with  the  operation  of  what  Signor 
Nitti,  the  Italian  Finance  Minister,  described  as  a 
national  system  of  exchanges,  which  will  come  into 
force  on  March  11,  but  it  would  be  unwise  to  look  for 
any  very  sudden  improvement.  The  Madrid  exchange 
has  fallen  further  to  19.40  pesetas  to  the  pound; 
apparently  the  efforts  to  arrange  a  Spanish  credit  for 
the  Allies  have  not  been  immediately  successful.  A 
further  advance  has  occurred  in  the  Scandinavian  ex- 
changes, Stockholm  being  quoted  at  14.80  kr.,  Chris- 
t'lania  at  15. 40!  kr. ,  and  Copenhagen  at  15.77I  kr. 
Silver. 
Nothing  is  doing  in  silver,  the  price  of  which  remained 
at  42^d.  per  oz.,  but  at  the  close  it  rose  to  42|d., 
and  Mocatta's  circular  says  that  some  large  shipments 
of  the  metal  have  recently  been  made  from  San  Fran- 
cisco to  China.  The  inference  is  that  should  these 
purchases  continue,  a  slight  improvement  in  the  price 
may  easily  be  seen.  From  Montagu's  circular  we 
learn  that  the  Shanghai  exchange  has  a  firm  tendency, 
and  that  the  native  speculative  position,  hitherto  a 
source  of  weakness,  has  been  reduced  by  more  than 
half.  In  Bombay  the  stock  of  silver  on  February  8 
amounted  to  3,200  bars,  and  in  Shanghai  on  the  2nd 
inst.,  it  consisted  of  about  29,650,000  ozs.  in  sycee  and 
$13,400,000,  an  increase  of  550,000  ozs.,  and  $400,000. 
Af>plications  for  the  Rs.  60,00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Rs.  2,19,55,000.  0£  these 
^3-  5S'49.ooo  were  allotted  in  deferred  transfers,  and  Rs. 
4,51,000  in  immediate  transfers.  Tenders  for  bills  and  de- 
ferred transfers  at  is.  4  2g-32d.,  and  for  immediate  transfers 
at   IS,    5d.    received   about   27   per  cent. 

BANK    OF    ENGLAND 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 

Week  ending  on  Wednesday.  March  6,  1918. 

ISSUE     DEPARTMENT. 


'Notes  Issued 


Government  Debt.. 
Other  Securities    ., 
Gold  Coin  and  BuIIIod 
Silver  BullioD 


Proprietors'  Caplial 

Reel 

Publis  Deposltsdnoluding 
Bxcbequer,  Savings 
Banks,  Commissioners 
0/  National  Debt,  and 
Dividend  Acoounts)  .. 

Other  Deposits 

Seven  Da;  and  other  Bills 


£77,525,000  1 
BANKING    DEPARTMENT. 
i 


£ 

11,015,100 
7,4^4,900 
59.075,000 


£77,525  000 


>4. 553.000 
3.571.104 


41,021.875 

137,715  '9' 

10895 


Osfed  March  7,  1918. 


£196,878,165 


Government  Securities  ..  67.736,782 

Other  Seotirities    ..        ..  98191,457 

Notes 29,93*, 205 

Gold  and  Silver  Colo      ,.  1,009,721 


£196,872,16? 
J.  G.  NAIRNE,  Chief  Cash.er. 


BANKING     DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  vear. 
Mar.  7. 


£ 

3,581  662 
120,889,462 
123,164,6,5 

27.3'7 

31,965.781 
196,029,100 
34.223,215 


„  c 

38,236,720 

54,009,935 

14  p.c. 

5ii.    ' 


Liabilities. 
Rest 

Pub.  Depositd  . 
Other    do. 
7  Oa;  Bills 
Assets. 
Gjv.  Seourlilea. 
Other       do. 
Total  Reserve 


NoteClroulatlOD 
Coin  and  Bullion 
Proportion 
Bank  Rate 


Feb.  27, 
...18. 


f 

3,565.021 

42,649.718 

124,767,163 

10,219 

56.3>o,o8! 
98,641.366 
30,551.673 


£ 

47,251.225 
59.352,898 

lS-2  p.c, 

5      „ 


March  G, 
■918. 


£ 

3,57I,'04 
4r,o2l,S75 

■37,715.291 
10,895 

67.716,782 
93,191,457 
30,943,926 


£ 

47.590.795 

60,0^4,721 

173  p.c. 

5       ., 


8,o( 


12,948,123 

676 

Decrease. 


13,406,796 


Inorease 
£ 

339.570 
73i.lia3 


Decrease , 

1,627,843 

Increase, 
11,386,700 

_392,i5J 
13,406,796 

Decrease. 


•9  p.c. 


LUNDUN  BANKERS'  CLEARING. 


Date. 

Increase. 

D«:crease. 

laniiarv 
February  6 
,.       '3 

,1          20 
,.          27 

March       6 

1918. 
2,073.224,000 
44  ,563,0  0 
383  794,roo 
39'>,H5.ooo 
385,712.000 
73,249,000 

1917. 
1,865. 125,*"  00 

4iO,22S,0OO 

440,039,000 

474,857,000 

434,40i,'00 

56,512,000 

208,099,000 
lo,3j8,ooo 

16,737,000 

£ 

56,245.000 
79,312,000 
48,671,000 

Total 

3,452,107,000 

3,701,161,000 

235,174,000 

184,228,000 

Return  of  Currency 

CURRENCY   NOTES. 

Notes  for  the  week  ended  March  6 

.  191" 

Issued. 

Cancelled. 

Outstanding. 

£1  notes 
10s.  notes 
Note  certificates 
Previous  total 

4,968,520 

1,431.420 

50,000 

843  0'2.7i6 

2,906,920 

1,231.251 

30,' 00 

624,613,180 

161,3^5,296 
37,o>4,027 
2^,310.000 

218,109,536 

841,472,6  6 

62. 783,333 

22    ,6-9.323 

Ratio  oi  gold  held  against  notes,  this  week,  14.37  p.c. ;  last  week  14.^3  p.c, 

PUBLIC   INCOME   AND    EXPENDITURE. 

(For  7  days  ended  March.  2.) 


REVftNUE. 


Customs 

Excise 

Estate,  &c.,  Duties  . 


St 


mps 


Land    lax  and  House  Daty 
Property  und  Income  Tax 
Excess  Profits  Tax., 
Land  Values   ,.         ,,         ., 

Post  Office 

Crown  Lands . . 

Sundry  loans 

M  iscellaneous 

Bullion  advmces  repaid  .. 
ForTreasuryBilUfor  Supply 
5%  tixchequer  Bonds,  1922. . 
6%  Exchequer  Bonds  1920.. 
Nation  1  vVar  Bonds  ..* 
War  Savings  Certificates., 
4%  War  Loan,  1929-1942  1 
5%  War  Loan,  1929-1947  f  * ' 
Other  Debts  created  under 
War  Loan  Act,  1915,  and 
Kinmce  Act,  iqeS.  . 
Telegraph  Money  Act,  i  13 
Under  Post  Office  RIy.  Act, 

1913 

Under  Military  Works  Act, 

1897-1903       

Un  ler  Public  Biiildings    .. 
Under  Housing  Act.. 
Repayment  of  Advance  for 
Interest     on     Exchequer 
Bonds 
China  Indemnity 
East    Africa    Loan    repay- 
ments  

Suez  Canal  Drawn  Stiares. . 

Ways  and  Means  Advances 

Decrease      in      Exchequer 

balances       


£ 

1,309,000 

700,000 

72  J, 000 

2II,0U0 

1:0,000 

15,477,000 

3,663,000 

20,000 

550,000 


59.9;o 

100,000 

87,326,000 


19,050,003 
i,8oo,oco 


12,591,815 


Expenditure. 


19,350,000 
1,716.939 


£164,818,724 


National  Debt  Service 
Inter  st,   &c.,  on  War  Debt 
Development  &  Ro^d  Impvt 
Pdvinen  s  to  Local  Taxation 
Other    Consolidated    Fund 
Charges        . .         .,        ,, 
Supply  Services 
Bullion  Advances     ., 
For    Adva-  ce   for    Interest 
on  Exctiequer  Bonos  un- 
der   Capital  Expenditure 
(Mcn-^yj  Act,  1904  ., 
For  Treasury  Bills  .. 
War  Loan  and  Exchequer 

Bonds 
Other  Debt  under  War  Loao 

Acts,  19:4-16 

For   -xchtiquer  Bonds  under 

Section  61  of  Finance  Act, 

igi6,  and  Section  54    1917 

Under   Telegraph    (Money) 

Act,  1913 

UnHer    Post    Office     (Lon- 
don) Railway  Act,  1913.. 
Under  Military  Works  Acts 
Un  ier  Housing  Act,  1914.. 
Public    Buildings  Expendi- 
ture Act,  1903 
Old  Sinking  Fund,  1907-8.. 
Sinking  Fund,  1914.. 
China  Indemnity      ..        .. 
East  African  Loan  .. 
Cunard  Agreement  Act 
Expenditure  Certifica  es  .. 
Depreciation  Fund  . . 
Suez  Canal  Drawn  Shares. . 
T(rrmporaryAdvances  Repaid 
Increase       in       Exchequer 
balances       ..        ..       «• 


1,856,141 


a'>,3^ 
62,484,149 


98,625,000 
585.948 


61^400 


16,700 
1,149,020 


£164.818,724 


^Excluding  sales  through  bdiiks  which  have  not  yet  been  utuugut  to  account 

NEW    YORK   ASSOCIATED    BANKS   (dollar  at  4s.). 


Loans        

Reserve  held  in  own  Vaults  , 
Reserve  held  in  Fed.  Res.  tk. 
Cash  in  own  Vaults  . . 
Reserve  held  in  Other  Depi  8. 
Nett  Demand  Deposits  ,. 
Nett  Time  Deposits  ..  .. 
Circulation         

Exc^'SB  f. awful   Re<tervp 


vlar.  2, 1918.  Feb. 23, 1918.  Feb.i6,igi8.  Mar.  3,  1917, 


i 

855,291,000 

3,302,000 

98,262,000 

19,840,000 

1^628,000 

39,722,000 
6.924,000 
8,076,000 


£ 

850,o.>o,ooo 

3,272,000 

99.170,00c 

I  g,  730,000 

1,640,000 

715,460,000 

40,294,000 

o  654,000 

8,748.000 


i 

839.664,11c 

3,362  000 

103,290,  00 

ig.yia.ooo 

I  54<i.i  ou 

73>,i5S,oo. 

40,226  000 

6,831,00. 

10,996. tXXl 


£ 

700,85;*, 000 
10(1,714,000 
39,360,000 

1 1 ,  .  .  V "OO 

7i6,432.0«> 

34..,y4,oOO 
5,744,000   . 

33-57-t.  ■*» 


La*iui   KtiServe  consists  of 
Time  Deposits. 


I8%  of    tue  Demand  Deposua  and  5  «  ot    the 


K. 


252 


XLbc  Jnvestors'  IReview. 


M.ARCn  9,    1918. 


FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  4s.). 

Feb    1,  1918 

Jail.  25.  1918. 

Feb.  1, 1917. 

Gold  coin  »nd  oertifioates     . . 

Gold  Seltlemenl  Fund 

Gold  with  fureifcn  agencioft  .. 

93,951,800 
78,724,800 
lo,5on.ooo 

i 

91,402,400 
77,642.000 
in.^oo.ooo 

61,392,800 
42,592,200 

Total  gold  held  by  banks 
Gold  with  F  deral  Ret.  Agent 
Gold  Redemption  Fund 

183.176,600 

156,333.400 

3,89  .4-0 

182,544.400 

158.765,800 

3.00(   200 

103,985,000 

54,814,800 

367,000 

Total  gold  resenrea    . . 
Legal  tender  notes,  silver,  &c. 

34)404,400 
1 »  6«7  000 

345,301,400 
11.750.400 

159,166,800 
2,437,000 

■Total  reserves  . . 
Bills  diaeouDied— Membera'. . 
Billa  bought  in  open  market 

355,091.400 
121,355,600 
57.961,000 

356,55l,foo 
125,5«,400 

54  782,400 

161,603,800 
a. 94 1,400 
18  622,40-) 

Total  bills  on  hand     . . 
U.S.  Gov.  lonR-term  sec. 
U.S.  Gov.  short  term  sec.      . 
Moaicipal  warrants 
Loaina  on  gold  coin  and  bullion 

179,3  il>,6uo 

10,746,800 

15,779  600 

761,000 

180,314,800 

10,105,000 

I4.5'3  800 

9«o,40« 

21,563,-00 
6,110,000 
3,729400 
2,566,400 

T.tal  earning  atsetl  .. 
Due  fm  other  F.d  Ret  bnk— n. 
Uncolli-eted  items 

206.604.000 
8.8^1,200 
64,308.800 

205934.^00 
6,501.000 
64,740,600 

33,969,600 

2,537.400 

25,322,200 

Total  dbdctns.  fm  gross  dep. 
S%Red.Fund  agFed.Ret.bknts 
All  other  resources 

73,290,OLO 
107,400 
lii.Sno 

71,241,600 
107.400 
40200 

17,859.600 

80,000 

3.^97,000 

Total  resources 

635  204 ,6c  0 

633.8-5  000 

226.110,000 

Capital  paid  in 

Surplue 

Government  deposits  . . 
Due  to  membrs     Res.  acoount 
Due  to  non-mbrt— clearine  ac. 
Members'  bank  deposits — neti 
Collection  itema 

14,524  000 
326,P0O 

26,558,000 
295,728,800 

38,256,600 
10,3^3,800 

l4,4»7.8oo 

126,800 

27,138,200 

296,148,630 

38,991,000 
7510.400 

11,145,000 

4,(66,6oo 
137,975,600 

20,246,400 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circniat'n 
F.R.  bk  nts  in  circn-  nett  liab. 
All  other  liab,  in  for  Govcrdts 

3;o,897,2i,o 

247,2  ?o,200 

1,600.000 

736,400 

369,817,200 

246,986.800 

l,6oo,coo 

7^6,400 

162,888,600 
52,006,000 

70,400 

Total  liabilities 

635,j04,(,oo 

633,875  000 

226,110,000 

Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.  R.  nts  in  act  circ 

Ratio  of  Bold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined                 

Ratio    of    total    res.    to   nett 
deposit  and  F.R.   note  lia- 
bilities comb  ncd      .. 

63.% 

61.5% 
6j.9% 

633% 

651% 

85-1% 

86,4% 

HEW  YORK  STATE  BANKS  &  TRUST  COMPANIES  (dollar  at  4s.). 


Loans  ..       •• 
Specie 
Depoalts 
Legal  Tenders 


Mar.  2,  1918.  Feb.  23,!  1918 


174,874,000 

3,590  000 

172,828.000 

16,976. roo 


£ 
173.304,000 

3,170,000 
170,216,000 

i6.7'>o.o"0 


Feb.  16,  igi8. 


170,334,000 

3.634,000 
170,082,000 

i6,594,0(y> 


Mar.  3,i9i7> 


J  51, '■4^,000 

13,426,000 

160,800,000 

2  276,000 


BANK   UP   KKANCt:    i25  francs  to  the  £u 


Mar.  7,  1918. 
£ 

Feb.  28,  1918. 
£ 

Feb.  21,   1918. 
£ 

Mar.  8,  1917. 

£ 

Gold  in  hand 

113  395,000 

133,241.520 

133,184,720 

128.409,520 

Sliver  In  hand 

10,243,520 

10,197,040 

10,136,600 

10  731.560 

Bills  discounted      .. 

44,9:6,040 

5l,489,3fto 

50,114,920 

24,668,480 

Advances 

47.432,52« 

46,815,320 

48,50i,o8o 

49.847,720 

Na:e  circulation 

986,001,080 

972.332,280 

959.451.480 

731,251,080 

P  ibllo  deposits 

1.163,360 

2,089,080 

771,760 

I,549.'40 

Private  deposits 

105,223,320 

I03,249,coo 

104,323,880 

99,379,640 

Forpien  RillH.. 

389,200 

35o,roo 

8.5,400 

85,040 

Proportion  between  bullion  and  circulation  22.8?  per  cent.,  against  23.13  per 
cent.  last  week.  Advances  to  the  State  :f534,ooo,ooo,  increase  jfi6,ooo,ooo.  The 
adjoumed^paymenis  of  drafts  in  Paris  on  account  of  the  moratorium,  jf  19,574,680, 
decrease  t34.920,  and  at  the  branches  :f24,93o,320t  decreasft  {,45,480. 

IMPtklAL  BANK  OF  UBKMANY  (20  marks  to  the  JE). 


Feb.  28,  1918.  Feb.  23,  191 8.  Feb.  15,  igiS.  Feb.  28,  xgiy 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Aivanoes  . , 
Note  circulation 
Depo-iits 


£ 

126.181.450 
65.653.150 
652,4  4,650 
431,600 
565.541,400 

324.5'^l.550 


£ 
126,169,^50 
62,713,500 
617,794.750 
300,150 
556,123-550 
303,460,9^.0 


^  £ 
120,112,900 

61,466,300 
643.775.150 

35>,450 
554,885,500 
110,792.'  50 


£ 

"7.145,950 

17,128.800 

449.24I,a50 

652,350 

405,358.110 

203.820,550 


Clearing  House  return  during  February  £420,879,905,    againbt  ;£;478,428,i70 
In  .January. 

BANK    OP    SPAIN  (25  pesetas  to  the  £). 


Feb.  23, 1918  Feb.  16, 1918  Feb.  9, 1918  Feb.  14,1917. ' 


Gold        

Silver 

Fo  Bien  Bills    .. 
Discounts  ana  bbori  Bills 
Trb.sury  Account,  &a. 
Notes  In  Ciroulatiuu  .. 
Cuacent  AoQouiits,  Depositv, 
Dividends.  Interasts,  jtc. 
Goveromem  Securities 


£ 

555.541 
407,129 
,556,108 
.236,108 
063,901 
335.2'9 
776,066 
,814,10s 
4o9.7'3 


f 
79,498.101 
38,301,819 
3,49^,959 
31,057,719 
25,450,316 
113,279,761 
36,245,163 

1.872,994 
6,081,360 


£ 

138,368 
265  027 
486,003 
270,097 
991.740 
037,296 
767,4^ 
751.965 
.051.886 


£ 

5a.729.031 

29.915,563 

3.535.175 

25, 94,604 

26,240,603 

95  933,363 

30,400  518 

1.702.507 

1,185,806 


NETHEBLANDS  BANK  (12  Florins  to  tbe  £). 


Gold  and  Silver 
.  Bi  '    and  Advances 
Note  cirrulatlOD 
Deposits.. 


Mar.  3,  igi8. 


£ 

60,915  5C0 

13,188.083 

71,721.16(1 

5,747,2  o 


Feb, 23, 1918 


£ 

60,164,418 

12  899,916 

70  676.313 

6,768,756 


Feb.  16, 1918 


60,301,350 
14,321,666 
71,391.666 

_7. 345.250^ 


Mar.  3, 1917. 


49,836.750 

15,458,916 

62,274,000 

7.V4,333 


BANK 

OP    SWEDEN  (IS  kroner  to  the  £) 

. 

Feb.  9,  1918. 

Feb.  3.  igi8. 

Jan.  26, 1918. 

Feb.  10,  1917. 

Gold 

Balanoe   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  .. 
DIscouDisand  Loans 
Nolas  In  olroulation 
Deposits  at  notice  . . 

£ 

■  3,100,000 

7.476.000 

2,881,000 
12,247,000 
39,105,000 

6.663,000 

£ 
13,103,000 

7,416.000 

a.SXi.eoe 
i2,i«8,ooa 
39,400,000 

6.640,000 

£ 
13,125,000 

7,196,000 

3.43«.eoo 
1 1 .989.000 
97.868  000 

8.143,000 

>o,589,ooo 
1,7*4,000 

S.8l),ooo 

4,406.000 

20,831.000 

3,332,000 

LONDON  COURSE  OF  EXCHANGE. 


Plae*. 

Usance. 

Mar.  5,  1918. 

Mar.  7,  igit. 

Sellers.  Buyers 

Sellers. 

Bayeti. 

Amattrdam  . .    . . 

Paris     

Switierland. .     . . 

Petrograd    . .     . . 

Genoa.  4c 

Spain     

Lisbon  and  Oporto 
Copenhagen..     .. 
Cbristiania  ..     .. 
Stockholm   ..     .. 

Cable  transfers 

Three  months' bills..     .. 

Cable  transfers 

Three  months'  bills. ,     . . 

Cable  transfers 

Three  months' bills..    .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Three  months' billa , ,    .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

1055 

»M7 
27-57 
21,23 
21.58 
nom. 
42.60 
19.40 
57i 

15-72 
1545 

14.85 

10.60 

37.22 
2762 

nom. 
42.70 

30 

15.83 
15-55 
■4.95 

10.48 

»7i7 
27-57 
3l-:o 
21.55 
nom. 
42.10 
1925 

37J 

«9 
15.70 
15-43 
14.80 

10-53 

37.aa 
37.6a 

21.63 
nom. 
4230 

'W 

ll-w 

i5Si 

1490 

FOREIGN  RATES  OF  EXCHANGE  ON  LONDON. 


Paris,  cheques  ~ 

Amsterdam,  cheques 
Italy,  sight 
Madrid,  sight..         .. 
Lisbon,  sight  . . 
SwilZ'^rland,  sight   .. 
Christiania,  sit^bt 
Stockholm,  si^ht      .. 
Copenhagen,  sight    . . 
Petrograd,  sight 
Alexandria,  sight 
Bombay,  T.T. 
Calcutta,  T.T. 
Hong  Kong,  T.T.     .. 
Shanghai,  T.T. 
Singapore,  T.T. 
Yokohama,  T.T. 
New  York,  cable      .. 
Buenos  Aires,  T.T. . . 
Valparaiso,  90  days.. 
Montevideo,  T.T.     .. 
Rio  de  Janeiro,  90  days 


Method  of 

Quoting. 


Francs  to  £1        T 
Florins  to  £1 
Lire  to  jfi  .. 
Pesetas  to  ^i 
Pence  to  milreis  . 
Francs  to  £i 
Kroner  to  fi 
Kroner  to  £1 
Kroner  to  £1 
Roubles  to  ;fio  • . 
Piastres  to  £1 
Sterling  to  rupee. 
Sterling  to  rupee. 
Sterling  to  dollar. 
Sterling  to  tael     . 
Sterling  to  dollar. 
Sterling  to  yen     . 
Dollars  to  £i 
Pence  to  dollar    . 
Pence  to  peso 
Pence  to  dollar 
Pence  to  milreis  . 


[Xl 


25.22i 
12.107 
25.22^ 
25.224 

25  22i 
18.159 
18.159 
18.159 

94-57 
97i 

1/4 
1/4 


24.58d. 
47-58*1. 

sId. 

i6d. 


Last 

Week. 


This 
Week. 


OPEN  MARKET  DISCOUNT.  Last  week.  TJis  week 

Percent.  Per  cenr 

Thirty  and  sixty  day  remitted  ..      3i— &  •*  34~A 

Three  uioutlis  ,,  ••       3! — A  .,  34 — ft 

Four  months  „  ..       si— A  ••  3j-A 

Sii  months  ,  ..      3A— i  ••  3A— I 

Three  months  fine  ioland  bills  ..        4  -i  ..     4  -  ft 

Four  months  .•      4i~|  -•  4^ — i 

Six  months  ..      4z— 1  ..  4r~} 

BANK    AND    DEPOSIT    RATES.     Last  week  This  week 

Per  cent.  Per  cenu 

Bank  of  Bngland  minimum  dtsooimt  rate        5  ••        S 

,,  ,,         short  loan  rates  —  ..        — 

Bankers' rate  on  deposits 3  ..        3 

Bill  brokers'  deposit  rate  (oall) 3  ••        3 

„  7  and  14  days' nottoe  ..        ..        ..        ..        3i  *•        3i 

Current  rates  for  7  day  loans  3t  >.        3t 

„  for  call  loans  3|— 3  ••      3"-} 


The  Week's    Stock   Markets. 


SWISS  NATIONAL  BANK  (25  francs  to  the  £). 

Feb.  33.  1918. 

Feb.  15,  1918. 

Feb.  7, 191S. 

Feb.  33, 1917. 

Gold  and  silver 

Bills 

Note  oiroulatlon 
Current  and  deposi' 
aroonnt<t 

16,936,703 

8,054,840 

34,516,484 

3,584.900 

l6,787,lop 
7,203,664 
24,429.07^ 

2.963,916 

16,723,652 
10.185.452 
24.811.716 

5.469.7=2 

15,869,920 
6,561,596 
19,4«6.5ia 

4,801,014 

Apart  from  the  intensive  culture  of  War  Bond  sub- 
scription by  means  of  the  Tank  campaign,  the  princi- 
pal factors  affecting  the  Stock  markets  have  been  the 
proposed  intervention  of  Japan  to  neutralise  German 
designs  on  Siberia,  and  the  adhesion  of  Argentina  to 
the  cause  of  the  Allies.  So  far  as  the  Tank  campaign 
is  concerned,  it  has  naturally  withdrawn  a  considerable 
amount  of  investment  business  which  would  otherwise 
have  gone  through  the  Stock  Exchange,  but  as  it 
has  been  in  progress  for  several  weeks  up  North, 
where  most  of  the  money  seems  to  be,  the  effect  of  the 
London  visitation  might  easily  be  exaggerated.  All 
the  same,  it  cannot  be  doubted  that  it  has  made  an 
appreciable  difference  to  the  amount  of  dealings 
brought  to  the  floor  of  the  House.  Japanese  stocks 
have  suffered  rather  severely  from  that  country's  offer, 
thoroughly  unselfish  as  we  believe  it,  to  pull  the 
Siberian  chestnuts  out  of  the  fire  for  the  Allies. 
Modern  war  is  a  very  expensive  affair,  and  if,  as  may 


March  9,   1918. 


Zbc  3n\>e6toi6'  IReview. 


253 


I  Last    This 
Week  Week 


Consols... 
War  Loui 


lit 


India  i 


Ik 


1929-47. 

,  19 '9-4' • 


Australian  5j%,  1920-23 
Canada  4%.  1940^  -••• 
.»       4*%.  »9«>-5 

N.s.w.  4<r 


I93J  . 

Argentina  4%,  1900 

Belieian  3% 

Brvfil,  iqrs 

M       5%.  I9U    

Chinese  1896  

,,       1912 

B^ypt  Unified  4% 

Caledonian  defd ,., 

Gt.  Central  pra 

,.        „        dfd 

Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lancn.  and  Yorks 

London  Brf^hton  defd. 
London  Chatham  ord. . . 


548 


CanaHfan  Paci&o   

E,  Indian  Guar.  4A  %  debs. 
Grand  Trunk  ord.    

Do.  ist  pf 

Do,  3rd  pf 

Antofagasta  dfd 

Brazil  Common 

B.  A.  &  Pacific 

B.  A.  Gt.  Southern 

B.  A   Western    

Anglo-South  American   .. 

Bank  of  Australasia 

Bankof  N.S.  Wales 

Barclay  &Co.*'A" 

Do.       "B" 

Capital  &  Counties   

Chartered  of  India    

Hongkong  &  Shanghai    . . 

Lloyds  

London  &  Brazilian 

Armstrong,  Whitworth.. 
Birmineham    Small  Arms 

Cammell'Laird 

Caryo  Fleet 

Dorman,  Long  

Associated  Cement 

Borax  dfd 

Bovri'    

Brazil  Traction  

Briti-^h  A mer.  Tobacco  pf. 

British  AUiniinium 

Briii  h  Oil  &  Cake    

Brunner,  Mond 

Castner-Kellner 

Coats 

Courtaulds 

Cunard 

Dennis  Bros 

Eastern  Telegraph   

t£a»tmans 

Engtibh  Sewing  Cotton  .. 

Anglo-Egyptian  "B"  .... 

Baku  (los.) 

Burmah 

Lobitos ; 

Maikop  Pipeline   

Mexican  Eagle  pf 

AUagar  2/- 

An^iu-Java  Rub.  a/-     .... 

Anglo-Mdiay  2/ 

Ayer  Kuning  £1 

Batang  Malaka  2/- 

Bekoh2/- 

Brit.  N.  Borneo  Trust  ft 

BukitCIoha/- 

Bukit  Kajang  £t 

Bukit  Mertajam  2/-   . . , , 
Bukit  Semhawang  2/-  .. 

Carey  United  £1   

Ceylon  Para  2/-  . .. ,     . , 

Chersonese 

Chevi  t  2/-   

Dalkeith  2/- 

Eastern  Invest.  Trust  £ 

Grand  Central  £1 

Gula  Kttlunipong  £1.,.. 

Highlands  £1 

Java  Investment  £1  .... 


Java  Hara  ti   . 

Johore  Rubber  Lands  £1, . 

Kamunin    2/- 

Kinta  Kellas2/- 

Kuala  K   bu  2/-  

Labu  i/- 

Langt-n  Java  £1 

Linggi2/- 

London  Astatic  2/- 

Malacca  £1 

Malayalam  £1 

Mt-rliinau  2/-    

I'adang  Jawa  a/- 

Pdtaling  2/- 


64 


81 


3S 

3H 

40; 

39/ 

20/3 

20/3X 

44i 

4i'i- 

18/6 

18,6 

S1/S 

33/ 

32/6 

32/ 

1) 

s-ft 

3§ 

6iS,x 

6s 

It 

8J 
•♦A 

H'.lb 

35i6 

IS24 

>5Jj 

q/<) 

11/ 

35/b 

54/ 

VI 

35/3 

I/O 

1/9 

7* 

7 

m 

«M 

»/ 

2/ 

6J/3 

6j/3 

m 

3/lJ 

64- 

14/ 

■3/3 

48/ 

430 

4/7* 

4/S 

4/34 

4/jJ 

17/ 

17/ 

5/ 

5/ 

74/ 

71'3 

4/3 

4/lS 

3/4 

3/1* 

41/ 

43/ 

9/4* 

9/3 

3/3 

3/2 

5/9 

5/74 

Abbontiakoon  (lo/-)..... 

Bechuanaland  £zp 

Brahpaii  , 

Brok.  n  Hill  Prop.  (8/-) 

Cam  &  Motor 

Central  Mining  (£ii)  .. 

Chartered    

City  Deep      

Cons.  Gold  Fields    . . . . . 

Cons.  Langlaagte 

Crown  Mines  (to/-)  ...., 
De  beers  dttl.  {£z  loi.)  ., 

East  R^nd    

G.iduld 

Gov  Areas  Mot?     


2/loi 
25/9 
-716 
35/ 
58/6 
28/3 
31/ 
33/3 
3/9 
4/1 
2/7j 
9/104 
42/ 
26/6 
8/3 
5i 
38/9 
5/3 
3/9 
42/ 

4/14 
7/3 

5^1 

3ftx 
I116 

64 
15/14 

3" 
36,'9 

13/61 

"H« 

'3 
6/ 
2^X 

3ix 


2/104 
25/9 

27/ 

35/ 

55/ 

26/g 

39/6 

30/3 

3/74 

3/,o 

2/74 
9/3 
41/3 
25/6 
7/10} 

5} 
37/6 

5/ 
3/74 
42/ 

4/.J 
7/6 

5X 
67/61 
11,6 

6A 
15/ 

2S4< 
36/" 
18/H 

■Ij 

128 

v/9 


N.s.w.  44%5jrr.bd8 

..      44%. '9«-7 

•  .       5%.  1921-3 

■t       5i%.  1920-2  .... 
Vew  Zealand  4%,  1929    .. 

Queensland  4% 

44%.  1920-5   .. 
Union  of  S.  Africa  44%, 

1920-5    

Victoria  44%.  i02f>-5 

Westn.  Aus.  4%    

French  War  Loan,  5%  . . 

Iapan44%  (1st),  1905   

5%  '907 

Mexi(»n  5%,  1899   

Russia  4  % 

••     44%.  1909 

.,      5%.  1906 ! 

London  and  N.-W 

London  and  S.-W.  dfd.  . . 

Do     red.  pf.  1914 

Metropolitan 

bo.     5%    pf..... 

Mel.  Dtstrlet 

Midland  dfd 

Ntli.  British  dfd 

Nth.-Eastem 

Sth.-Easiern  dfd 

Chesapeake 

Eri 

Southern 

Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San   Paulo(BraziIian}.,.. 

United  of  Havana 

London  City  &  Midland.. 
London  County  &  West/.. . 

London  Joint  Stock 

Nat.  Prov.  otEng.lf  104  pd) 
Do.  (£12  pd) 

Parr's    

Standard  of  S. A 

Union  Discount 

Union  &  Smiths 

Kynocbs   

Mond  Nickel  ord 

South  Durham  Steel  .... 

Thornycroft    

Vickers 

Pine  Cotton  Spinners  .... 

Forestal  Land 

Furness,  Withy 

HarrodB  Stores 

Hudson's  Bay    

Imperial  Tobacco  'C  '  pf. 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Nlarconi    

Mavpole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  &F 

P.  &0.  dfd 

Royal  Mail  

Underground  Inc.  Bds. .. 

North  Caucasian 

Roumanian  Cons 

Shell 

Spies  (10/-) 

Ural  Caspian 

Perak  2/-  

Port  Dickson  2/-   

Rub.  Estates  Johore  £1.. 
Rub.  Estates  Krian  2/-. . . . 

Rubber  Trust  £1 

Sampang  (Java)  2/- 

^apumaikande  £1     

Seaport  £1 

^^elaiigor 

Sengat  2/- 

SerembdU  £1  

Shelf  ord  £  t 

Sialaiig  jfi    

Singapore  Para  2/-    

Singapoie  United  2/-    .... 

Soember  Ajoe  2/- 

Stagbrook  li 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  j^l   

Sungei  Ktpar  2/-   

Sungei  Kruit  £1,,,, , 

laiping  2/-  

Tali  Ayer  £t  

T-ndjo.ig  £1   

rand]ong  Malim  £1 

Tebrau  1 1  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdang  2/- 

United  Sumatra  2/- 

Vald'Or  2/- 

Vallaiubrosa  2/- 

Way  Halim  1/8  pd 

Gt.  Boulder  (2/-)    

Kysht  m    

Ma^honaland  Agency  ... 

Meyer  &  Charlton    

Modder  "  B" 

Do.     Deep , 

Mysore 

Rnd  Mines  (5/-)    

Rio  Tinto(£5)   

Ru-so-Asi  tic 

Spring  M  ines 

lai  giiiyika 

Fatiatyk    

Van  Kyn  Deep   


Last 
Week 


26 

37/6 
3A 
42/ 
40/6 
43/6 


19/6 
16/9 

■H 
3424 
'23 

804 


T 


13/ 


easily  happen,  Japan  is  committed  to  a  .serious  effort 
westwards  from  Vladivostok,  most  of  the  financiaJ 
benefit  she  has  derived  from  the  war  would  quickly  be 
wiped  out.  Argentina's  decision  to  join  the  United 
States  and  the  other  Allies  is  all  to  the  good.  She  can 
not  only  help  materially  with  food  and  other  supplies, 
but  it  may  be  hoped  that  the  hands  of  the  Govern- 
ment will  be  strengthened  to  stop  those  recurrent  rail- 
way strikes  which  have  done  so  much  to  disorganise 
the  business  and  arrest  the  prosperity  of  the  country. 
The  passing  of  the  interim  <lavidends  by  several  of  the 
leading  companies  must  be  a  nasty  blow  to  many 
holders,  but  it  was  inevitable  in  the  circumstances. 
Among  Industrial  securities  Explosive  shares  have 
again  come  into  prominence  on  the  expectation  of  a 
combine  of  the  principal  concerns.  We  understand 
that  provisional  terms  have  been  actually  arranged, 
but  we  believe  there  is  no  prospect  of  the  scheme 
being  allowed  to  go  through  until  after  the  war,  and 
that  will  naturallv  make  a  considerable  difference  to  its 
attractiveness. 


3A» 


With  the  Tank  campaign  in  full  swing  in  London  the  Stodt 
Exchange  scarcely  expected  to  have  much  business  coming  its 
way,  and,  indeed,  it  has  been  patriotically  supporting  the 
Government  without  the  remotest  hope  of  putting  anjrthing  into 
its  own  pocket  by  the  process.  As  a  matter  of  fact,  business 
has  been  of  the  smallest  description  almost  throughout  the  week, 
and  in  many  sections  dealings  have  been  almost  a  negligible 
quantity.  Consols  opened  with  a  slight  gain,  but  it  was 
quickly  lost,  and  the  rest  of  the  gilt-edged  market  was  dull  and 
uninteresting.  Colonials  were  almost  entirely  neglected,  ad 
the  one  or  two  fractional  movements  that  took  place  had  no 
significance.  In  the  Foreign  market  the  outstanding  factor  has 
been  the  possibility  of'japan  entering  the  war.  This  in  itself 
would  be  welcome  to  the  Allies  from  many  points  of  view,  but 
it  is  recognised  that  Japanese  finances  might  be  seriously  dis- 
organised by  an  expensive  campaign,  and  with  political 
jealousies  in  addition  the  market  was  not  particularly  com- 
fortable about  the  outlook.  Consequently  the  stocks  known  here 
felt  heavily,  and  Chinese  also  were  weak  in  case  of  complica- 
tions arising  from  Japan's  interposition.  Russian  bonds  also 
continued  to  recede  owing  to  the  chaos  still  existing  in  the 
condition  of  affairs  from  which  there  seems  to  be  no  escape. 
Spanish  Fours  were  particularly  well  supported  and  secured  a 
substantial  advance,  but  Uruguays  and  Peruvian  Corporations 
followed  the  general  tendency. 

Home  Railways  recovered  slightly  from  the  severe  depression 
of  recent  times,  but  afterwards  relapsed  into  complete  dulness, 
and  the  movements  have  been  quite  trifling  on  balance. 
Americans  were  dull  and  neglected,  with  International  Mer- 
cantile Marine  showing  conspicuous  weakness.  Canadian 
Pacifies  maaged  to  keep  steady  in  spite  of  the  poor  monthly 
statements,  but  Trunks  gave  way  on  the  disappointing  traffic. 
Argentines  Mid  not  gain  mucli  for  a  few  excellent  returns,  and 
although  the  strike  difficulty  appears  to  be  easier  the  passing 
of  the  interim  dividend  bv  several  of  the  leading  companies, 
although  not  unexpected,  has  naturally  caused  a  feeling  of 
depression.  It  is  hoped  that  the  adhesion  of  Argentina  to  the 
Allied  cause  will  presently  improve  the  situation,  but  that  is 
not  a  factor  of  immediate  importance.  Mexican  Rails  were 
heavy,  but  business  in  them  has  come  to  almost  a  standstill. 

Very  little  happened  among  Bank  shares,  and  movements 
were  of  small  importance.  Bank  of  Australasia  fell  a  point, 
while  Bank  of  British  North  America  gained  to  a  similar  ex- 
tent  on  the  excellent  report  of  Barclays,  and  one  or  two  others 
lost  a  small  fraction,  but  the  conditions  were  as  duU  as  could 
be  imagined.  Breweries  have  been  decidedly  flat,  with  Guin- 
ness losing  as  much  as  i  point  and  City  of  London  5.  Watneys 
and  several  others  also  displayed  weakness,  and  the  only  share 
that  was  apparently  supported  iwaa  Barclays.  Egyptiai^ 
securities  have  been  persistently  weak  on  profit-taking,  and  m 
the  Gas  and  Electric  section  South  Metropolitans  have  .lost  a 
point  or  two.  Iron  and  Steel  shares  were  generally  firm,  with 
William  Cory  conspicuously  strong,  and  Explosive  shares  also 
showed  more  vitality  than  of  late.  Canadian  Car  and  Otis 
advanced  several  points  on  very  small  business.  Among  Land 
shares,  Hudson's  Bays  were  weak,  while  Nigers  and  Pahangs- 
received  a  good  deal  of  support.  Nitrates  as  a  rule  were  dull, 
and  where  movements  occurred,  they  were  mostly  adverse.  In 
the  Shipping  section,  Indo-China  and  Court  Line  both  gained 
appreciably,  but  P.  and  O.  gave  way  rather  sharply.  Miscel- 
laneous Industrials  generally  were  fairly  firm,  but  Courtaulds, 
after  a  sharp  advance  on  the  bonus  announcement,  dropped 
back,   and  closed   little  better  than  8. 

Oil  shares  generally  have  been  weak,  but  Ural  Caspians, 
Venezuelan  Concessions,  and  North  Caucasians  have  shown  a 
certain  amount  of  strength,  although  business  has  been  on 
an  extremely  small  scale.  Rubber  shares  have  not  attracted 
much  attention,  and  although  the  market  as  a  whole  has  been 
fairly  steady,  dealfngs  have  been  on  a  very  small  scale,  pro- 
bably owing  to  the  fact  that  in  several  cases  interim  dividends 
which  were  confidently  expected  have  had  to  be  passed  owing  to 
the  incidence  of  the  excess  profits  duty. 


254 


Zbc  Jnvestots'  1Rev>iew» 


March  9,   ic  18. 


LONDON    PRODUCE   MARKETS, 

SCGAR. — No  change  resulted  in  official   quotations  during  the 
week. 

Coffee. — General  stability  again  governed  this  market,  and  a 
good  steady  inquiry  predominated.  A  fair  assortment  catalogued 
in  auction  mostly  found  buyers.  Of  East  Indian,  fine  bold  Mysore, 
«old,  130s.  ;  Nairobi,  good  bold  greenish  to  hard  grey,  nSs.  to 
135s.  6d.,  with  peas  up  to  162s. ;  Uganda,  good  to  fine  bold,  107s. 
to  117s.  ;  Costa  Rica,  132s.  6d.  to  1333.  6d.  ;  Salvador,  115s.  6d.  ; 
long-berry  Mocha,  ii6s.  to  ii6s.  6d. ;  washed  Dumont,  very  small 
to  medium,  923.  6d.  to  105s.;  and  Santos,  on  quay  terms,  71s.  to 
78s.  6d.  For  future  delivery  a  dull  and  inactive  state  of  affairs 
ensued. 
,    Cocoa. — Market  remains  in  a  dull  condition,  and  in  auction  only 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK    ENDING    MARCH  8,   igiS. 


last 

Week. 


This 
Week. 


•Dfar— per  onl., 
'    duty    14/,    g8% 

polarisation 
Tate's  Cubes 

'Crushed 

'Granulated  . .  . . 
Lyle's  granulated 
Foreien       grauu- 

latea,  first  marks 

f.o.b.,  spot 
GermaitCubef.o.b. 
■French  Cube 

prompi 
CrTstallised,  West 

India 

Beet,    88%    f.o.b 


a  13 
«  13 
t  6 
2    6 


tea— per  lb.,dut) 

I/-  lb. 
Indian  Pekoe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Fekoe    S->uGhong 
Ceylon  Pekoe     . 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Fekoe  Souchong 

Ooeoa  —per  owl 

dut)  6d.  per  lb 
Trinidad— per  cw 
Grenada  .,  . 
West  Africa..  .. 
Ceylon  Plantailon 
Guayaquil  Ariba.. 
ColTee — per    cwt, 

duty  4a/-  per  cwt, 
jBast  India    .,     .. 

Jamaica 

Costa  Rica  ..  .. 
'frovlsloni- 

Butter,  per  cwt 
Auiirallan  finest 
Argentine     . .     . . 
tr»bu  Creameries 
Dutch  ditto..     .. 
RuRF-ian  finest     . . 
Paris  baskets 
Danish  finest 
.Brittany     rolls  — 

doi.  fb 

Bason— per  cwt. 

Irish      

Continental..  ,. 
Canadian  ..  .. 
American  . .  , . 
Ham* — pec  owt, 

•Irish       

Canadian  . .  . . 
American     ..     .. 

OliatH- per  cwt. 

Dutch 

■  Canadian     ,.     .. 
English  Cheddar 
Wilts  loaf    ..     .. 
New  Zealand 
Rice— per  cwt. 

Japan     

Rangoon  a  stars  . . 

B<g«— per  no. 
English..  ...     .. 

Irish      

Danish 

SpeUer- 

G.O.l^.  as  to  posi 
tion 


nom. 
nom. 


269 
nom. 

s.  d.  s.  d 

nom. 
nom, 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
ni  m. 
nom. 


s.  d. 


£  *.    d. 


a  13 

a  13 
a  6 
a    6 


nom. 
nom. 


a    6    9 
nom. 


nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 

d.  8.  d 


87  0  -99  o 
85  c  -90  0 
62  o  -70  o  62  6 
77  o  -94  o 


Wool- per  lb.  * 

Australian 
Scoured  Merino 
Scoured  Cr'ssbrM 
Greasy  Merino  .. 
Greasy  Crossbred 
New  Zealand! 
(scoured)  Merino 
Greasy  Crossbred 
Cape  snow  white 

Indlarubberp.  lb 

Plantation,      Spot 
Crepe . .     . . 


87  0-  99  0 

»2   D-  88  o 

70  o 
77  o  ga  o 
I  jo/- 1 1 2/ 


tioo  131  o 
79  0  51a 
tie  o  1^4  6 


25a/ 

nom. 
nom. 
nom. 
nom. 
nom. 

nom. 


172/ 

172/ 

I7i/-i7i/ 

171/-100/ 

203/ 

i62;-i65; 
125/-165/ 


Last 
Week. 


ixo-o  131-0 
79-0  151-0 
1 10-0  134-6 


252/ 
252/ 

nom. 
nom. 
nom. 
nom 
nom 

nom. 


172/ 

172/ 
171/-172; 
171/-180/ 

203/ 
162/-165/ 
i25(-i65/ 


Coal— per  ton 

Durham,  best  . 

Seconds        . .  . 
East  Hartlepool. 

Seconds       ..  . 
Steams,  best 

Seconds       . .  . 

L«ad — perlon. 
English  Pig.. 
Foreign  soit,  net 

Qulckillyer— p,r 

bottle  firsthand 


Tin— per  ton 
English  Ingots 

Oo.  bars 
Standard  cash  . 
Tin  Plates, per  box 
Copper — per  ton. 
English,     Tough, 

per  ton      .. 
Best  Selected    . . 

Sheets 

Standard      . .    . . 
Jute— per  ton. 
Native    firsts    for 
shipment 


129/6-160/-  189/6-160/ 


Flonr— per  sack. 

Country  Straight 

Runs  ex  Mill.. 


nom. 

142/ 
nom. 
nom. 

s.    d. 
nom. 
a6    3 

40  0-42  6 
37  ;-38  o 
39  0-41  0 


54  0-50  o 
44/3 


nom. 
142/ 
nom. 
nom. 

■.     d. 

nom. 
26    3 

36  0-39  o 

34  0-35  0 

nom. 


54  0-50  o 
44/3 


This 
Week. 


£    s.  d 

nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom. 


a    5l 


nom. 
nom. 
nom 
nom. 
32  6 
29  6 

£    I.  H 

nom. 

£29i-£28J 

nom. 


£  ..  d. 

nom. 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


0    a    5i 


nom. 

nom. 

nom. 

nom. 
32  6 
29    6 

i     s.  d. 

nom. 
£29j-£a8J 


RfBBER  irregular,  with  a  moderate  demand.  Crepe,  spot,  sold, 
2s.  jjd,  to  2s.  4id.,  2».  5d.,  2».  jjd.  ;  April-June,  2s.  Od  to 
2S.  sjd.  and  2s.  6d.  ;  July-December,  2S.  7d.  to  2s.6i}d.  and  2S.  7d. 
Standard  ribbed  smoked  sheet,  spot,  sold,  2s.  jd.  to  28.  4jd.  and 
23  5d.  Fine  hard  Para,  spot,  2s.  8d.  ;  soft  fine,  2S.  ^d.  ;  and  ball, 
IS.  7d. 

Corn  (Mark  Lane). — A  steady  tone  was  maintained  in  all  sections 
this  week,  business  being  quiet  and  prices  without  material  change. 
Wheat;  English  remains  at  75s.  6d.  per  qr.  (504  I b-^.).  Of  im- 
ported descriptions,  No.  i  Northern  Manitoba  was  plac' d  at 
81S,  6d.,  and  No.  2  ditto  at  80s.  Pla  e  rules  at  Sis.  gd.;  Autralian 
nominal  at  833.  6d.  Flour:  Canadian  export  patents,  srs  gd  , 
landed  ;  English,  44s.  3d.  per  sack,  ex  mill.  Barley  nominal,  and 
maize  stationary  as  of  late.  Maize  meal :  White,  64s.  6d.,  yellow 
ruling  at  633.  6d.  Oats:  American  wiiite  clipped  No.  2  changed 
hands  at  6is.  6d.,  landed. 

Cotton  (from  our  Manchester  correspondent). — The  market  has 
again  been  dearer,  and  producers  have  held  very  firmly  for  higher 
prices.  Although  fluctuations  have  occurred  in  raw  c  tton  rates, 
sentiment  remains  bullish.  The  position  of  spinners  and  manu- 
factuers  has  been  strengthened  by  the  decision  of  the  Control 
Board  to  cut  down  production  to  a  greater  ext-  nt  and  owing  to 
the  smaller  output  there  seems  to  be  littl.-  prospect  of  lower  values. 
In  view  of  the  large  requirements  of  the  Government  and  the  home 
trade  it  does  not  require  very  much  export  business  10  support 
makers.  The  inquiry  in  cloth  lor  India  has  been  on  lather  broader 
lines,  but  most  of  the  offers  have  been  unworkable  Buying  has 
chiefly  been  in  light  fabrics,  fuch  as  dhooties,  and  in  printing 
cloths.  Adv  ces  have  been  received  from  our  dcpei  dencv  ol  con- 
siderable congestion  ( n  the  railways.  China  has  put  out  a  few 
more  bids,  but  progress  in  the  way  of  fresh  bu  iness  has  been  dis- 
appointing. Shipments  to  Egypt  recently  have  been  on  a  freer 
scale,  and  buyers  have  been  rather  more  disposed  to  give  out  fresh 
orders.  Some  uselul  lines  have  been  booked  for  South  America. 
Printing,  dyem;;,  and  finisning  cloths  have  att' acted  more  attention 
than  grey  staples.  The  nndfrcurrent  of  demand  for  the  home 
trade  has  again  been  healthy,  especially  for  goods  to  be  sent  in 
quickly.  American  yarns  for  home  use  have  been  put  up  in  price, 
and  spinners  remain  in  a  strong  position.  Buying  has  been  rather 
irregular,  but  the  turnover  has  been  of  very  fair  dimensions. 
Further  operations  have  transpired  in  fine  yarns  for  Ii^dia,  and 
some  producers  are  sold  up  to  the  end  of  the  year.  Egyptian 
spinners  have  been  difficult  to  deal  with,  and  some  substantial 
contracts  have  been  arranged  in  the  higher  counts. 


£323-^325  i;32o-/:324 
£324-^325  tnHi^s 


OII»— 

Linseed,  per  ton 
Rape,  crude  ... 
t.otl'"  Set-ii.cru. 
Petroleum  Oil, per 

8  lbs. 
Water  White      . 
oilseeds, Linsee 
Calcutta— pet  ton 
Spot 
Kape     ■•     •• 


£319 
nom. 


nom. 
)fu9-£i23 

£■49 
£iio-iioi 


£58-f63 
£66 
£60 


Iron — per  ton 
Cleveland  Cash  . 

Tobacco  —  duty, 
uiiuianufacture> 
7/4108/0   per  lb 

Maryland  &  Onto, 
pur  lb.  bond 

Viiginialeat. 

Kentucky  leaf 

llatakia..     .. 

Havana..     .. 

Manila 

Cigars,  duty  10/6 
pec  lb. 

Timber— Wood 

pitch  i-'ine    .. 
Indian   Teak 


£319 
nom. 


nom. 
£ii9-£ia3 

£m» 
£iia-iioi 


nom. 


£58 
£66 
£60 


•/7i 
l/8i 


29  15 
£29-io£30 


nom 
0  8  -a 
07-011 
a  0  -5 
1666 

nom. 

a/  upds. 


i/7i 
i/8{ 


Turpentine- 
American  Spot 

Copra— per  ton 

Malabar 
Cey  on  . .     . . 
F.M.S.  Singapore 
P.M.    Straits 


29  IS    0 
£29-io£30 


nom. 
0  8— a    I 

0  7 — 0  II 
a  0—5    o 

1  6-6    6 
nom. 

2/  upds. 


joo;—  400 
j8o/—  700 

124/ 


46  0 
46  o 
45  15 
45  10 


joof- 400/ 
gSo;— 700/ 

124/ 


46  0 
46  O 
45  10 
45  '0 


restricted  proportion  of  the  7,186  bags  brought  forward  found 
buyers.  Good  red  Jamaica,  87s. ;  Ceylon,  84s.  to  90s. ;  ditto 
native,  80s.  to  84s. 

Spice. — Pepper  market  remained  firm,  and  fair  black  Singapore, 
•  on  spot,  sold,  IS.  24d.  ;  Tellicherry,  is.  3jd.  ;  Aleppy,  is.  3d. ; 
Muntok,  IS.  I  id.  Cloves  firmer.  Fair  Zanzibar,  spot,  ^old,  2S.  3d. 
to  2S.  4d.  Tapioca  firm.  Fair  flake,  spot,  changed  bands  at  7Sd. 
pet  lb. ;  fair  Pen^ng  seed  pearl,  72s.  6d.  ;  and  medium,  70s.  In 
auction.  West  Indian  nutmegs  ruled  firm.  Size  62,  sold,  2S  iid. ; 
77,  at  23.  id.  to  2s.  4d.     Mace  quiet  and  easier. 

Shellac. — Market  quiet  and  unsettled.  Fair  free  second  orange, 
spot,  sold,  44OS.  to  420S.  and  445s. ;  May,  done  at  445s. 


The  Week  in  Minos. 


The  Mining  markets  have  been  in  a  rather  chastened  mood 
this  week.  Heavy  rains  on  the  Kand  have  so  flooded  the  mines 
as  to  seriously  interfere  with  production,  and  this  has  caused  a 
general  cessation  of  purchases  of  the  "  Kaffir"  group.  West 
Australian  shares  have  been  flat  on  news  of  further  labour 
troubles,  which  have  since  been  settled,  and  the  rtduction  in 
the  Ivanhoe  profits,  and  diamond  shares  have  been  on  offer  on 
the  prospects  of  a  diminishing  sale  of  stones  while  the  war  lasts. 

South  and  West  Africans. 

In  the  South  African  market  many  of  the  leading  shares  have 
been  marked  ex  dividend,  but  New  Modderfonteins  have  risen 
§  to  23i  xd.,  and  Rand  Selections  at  4f4  show  a  slight  re- 
covery of  the  dividend.  Following  the  raising  of  the  dividend 
from  22 J  to  30  per  cent.  Consolidated  Mines  Selections  have 
risen  is.  3d.  to  31s.,  and  Springs  have  advanced  i  to  3  23-32. 
Transvaal  Gold  Mining  Estates  have  recovered  is.  to  163.  6d., 
but  Gold  Fields  have  relapsed  2s.  3d.  to  35s.,  and  Modder 
Leases  have  declined  i  to  3|i  on  news  that  the  Select  Committee 
has  reported  against  the  amendment  of  the  sliding  scale  profit 
arrangement  with  the  Union  Government.  Gold  Trusts  de- 
clined 6d.  to  29s.  3d.,  3espite  the  raising  of  the  dividend  from 
IS.  6d.  to  23.  per  share.  Among  Rhcdesian  shares  Gaikas  have 
risen  3-32  to  i  1-32,  and  Shamvas  -fs  to  ij.  Chartereds  have 
been  steady  at  15s.  3d.  ;  the  underwriters  of  the  tax  free  deben- 
tures have  been  left  with  about  30  per  cent,  of  the  issue.  West 
African  shares  have  been  active,  notably  Gold  Coast  Amal- 
gamateds,  which  have  risen  2s.  9d.  to  22s.  in  view  of  the  com- 
pany's interests  in  the  American  Trona  Corporation.  It  is  now 
confirmed  that  the  excess  profits  duty  datum  line  for  West 
African  gold  companies  has  been  fixed  at  22 J  per  cent. 
Copper    and   Miscellankol-s. 

In  the  copper  group  Namaquas  have  ri.-^en  J  to  a|.  Tin 
shares  have  been  active  and  strong  on  the  high  price  which  is 
ruling  for  the  metal.  Tin  Areas  of  Nigeria  have  risen  as.  to 
73.  9d.  in  anticipation  of  a  good  report,  and  Pahangs  havo 
advanced  is.  to  133.  6d.,  Tin  Fields  of  Northern  Nigeria  t^ 
to  T%  on  a  maiden  "dividend  of  10  per  cent.,  Renongs  A  *o  2i^, 
Ropps  IS.  to  19s.,  and  Anglo-Continentals  is.  to  15s.  3d.  On 
the  other  hand,  East  Pools  have  relapse^  is.  to  24s.  gd.  on 
profit-taking,  Dolcaaths  is.  to  12s.  6d.,  while  Tronohs  on  the 
reduced  profit  for  last  month  are  ^  lower  at  iH-  Broken  Hill 
shares  have  been  bought  on  Colonial  account,  but  a  certain 
amount  of  profit-taking  has  been  effected  in  Proprietarys.  which 
are  6d.  lower  at  68s.,  ex  dividend,  after  having  touched  73s. 
The  company  is  now  rapidly  increasing  its  production,  and  it 
is  considered  not  improbable  that  the  Commonwealth  Govern- 
ment may  take  a  direct  interest  in  the  concern  in  connection 
with  its  shipbuilding  programme. 

A  surprising  feature  of  the  week  has  been  the  unwonted 
strength  of  Russian  descriptions,  which  is  attributed  -artly  to 
the  news  that  an  influential  committee  has  been  appointed  here 


March  9,   1918. 


^be  Jnvestots'  IRevlew. 


255 


to  protect  British  financial  and  mining  interests  in  Russia. 
Kusso-Asiatics  have  risen  i  to  2j,  Irtysh  Corporations  ^  to 
4,  Kyshtims  5-32  to  i  1-32,  and  Tanalyks  5-32  to  i  1-32.  In 
the  West  Australian  group  Ivanhoes  have  been  fiat,  and  on 
balance  are  J  lower  at  i|.  Golden  Horse  Shoes  have  fallen  -^ 
to  2^,  and  Sons  of  Gwalia  2s.  3d.  to  9s.  6d. 


MINING    NEWS. 

Natal  Navigation  Collieries. — Tlhe  repo'rt  for  the  year 
endted  June  30  last  shows  that  the  output  amrounted  to  344,667 
tons,  against  352,432  tons  in  1916.  Profits  rose  from  ;279,95,S 
to  ;^io6,668;  the  ddvidend  is  maintained  ait  7J  per  cent.; 
£'7'79S>  i€^'^^^  ;^i5,528,  is  written  off  'for  de.preciatioji,  and 
;£i25,S74,  agaiinst  ..£98,552,  is  carried  forward.  Liquid  assets 
exceed  liiabilities  by  ;£i48,io3,  an  increase  of  ;£33,i32.  Invest- 
ments in  war  stocks  have  been  increased  from  ;£2o,ooo  to 
^43,773.  The  aipipropriation  acccnint  has  been  provisionally 
debited  with  ^£30,000  foj  income-tax  and  excess  .profits  tax, 
but  the  aotuall  amount  of  this  IrJabdlity  has  yet  to  be  deter- 
nirined. 

Rhouesian  Mineral  Outpct. — The  production  of  pold  in 
January  declined  sharply,  thf;  total  showing  a  decline  of  ;f  16,809 
on  December,  and  of  ;f42,3o6  on  January,  I9r7.  The  following 
table  shows   the   production  since  January,  1914  : — 


Month.        j        1914. 

'9'5. 

1916. 

1917. 

1918. 

January 

February    

M<roh 

£ 

249  032 
259,888 
271,236 
295907 
!9  ,062 

306,421 
320,670 
316,172 
309.  98 
337,241 

3".7" 
309,669 

£ 
293,133 

2867*9 
299.686 

3>'',54l 
318,898 
32j,473 
336,565 
344.493 
32.085 
339967 
313  '6a 
331,376 

3«8,5«6 
313,769 
33'.,368 
319.386 
323,783 
3  3,070 
32.',365 
338,001 

3 '2,035 
325,608 
3  7.I35 
306,205 

296,113 
289734 
300,183 
297,977 
299.271 
302,195 
28((,73i 
294.3  9 
291.367 
289978 
275,830 
270,616 

£ 
253,«07 

Ap  il      

_ 

May 

— 

Jul) 



Aiieust 

September 

October 

Nove  nber 

December 

— 

Totala. . 

3,580,  r07 

3,823, '66 

3,893.3" 

3,495,353 

253,807 

The  number  o  producers  was  161,  or  31  less  than  in  December, 
and  the  output  01  other  metals  was  16,215  ounces  of  -ilver,  45,740 
tons  of  coal,  308  tons  of  coppur,  400  tons  of  asbestos,  4,463 
tons  of  chiorae  ore,  and  i  ton  of  wolframite  and  scheelite. 

West  African  Gold  Output. — In  January  the  production 
of  gold  WIS  ^122,602,  a  decrease  ol  /23,8o2.  The  following 
table  sho,v3  the  monthly  production  since  January,  1914. 


Month. 

1918. 

1917. 

1916. 

1915. 

1914. 

£ 

t 

£ 

£ 

£ 

Jan.      .. 

107863 

131,665 

140,579 

143649 

128  862 

Feb.     . . 

— 

101,892 

«37,739 

144034 

123,169 

Mjr.     . . 

— 

158,727 

1 50,9  V 

I  3,770 

131,  92 

April    .. 

— 

121,825 

I35,>J7'' 

1)9,978 

>3l,f97 

May     ,. 

— 

121,104 

132,9;6 

142,121 

145, «7 

June     .. 

— 

114,489 

127,1.  7 

I3<,289 

147,289 

July     .. 

— 

142017 

128,574 

I40.J90 

15  ,92) 

Aug.     . . 

— 

130,278 

125, 143 

139364 

150,386 

Sept.    .. 

— 

127.168 

127,138 

>35.744 

154  316 

Oct.      . . 

— ■ 

126, -95 

132,577 

■4l,77« 

159,4  0 

Nov.    .. 

— 

12  ,915 

130,101 

122,138 

154.674 

Dec.    .. 

— 

122  6  2 

146,4  9 

•  58.323 

147,699 

Totals 

107,863 

1,529.977 

1,615,306 

1.71-6,473 

1,727,044 

Sons  of  Gwalia. — A  further  demonstration  of  the  growing 
d/ifficuJties  aittending  gold-mincrg  oomipanies  is  the  passing  of 
the  usual  quarterly  dividend  by  this  Australian  mine.  The 
driTcctors  exiplaim  that  thds  is  rendered  necessary  by  the  greatly 
increased  cost  of  stores  and  maiterials  and  higher  wages.  The 
consideration  of  any  distribution,  is  therefore  deferred  till  the 
end  of  tfiie  half-year  in  June. 

North  Broken  Hill. — During  the  half-year  ended  Decem- 
ber 31  the  tniU  treajted  64,030  tons  of  ore  and  produced  11,459 
tons  of  concentrates,  as  compared  with  111,290  tons  and  22,045 
tons  respectively  in  the  first  half  of  the  yeair.  Working  costs 
rose  from  22s.  5d.  per  ton  to  26s.  6d.,  a  figure  which  includes 
development  expeniies.  On  working  account  the  nett  profit 
was  ;£2o9.838,  a,g,%inst  ;^I75,834.  To  this  is  added  ;f  7,300  tran.s- 
ferred  from  deibenture  sinking  fund  reserve  on  account  of  de- 
bentures cancelled,  ma]<ing  a  tota.l  of  ;if2i7,i38.  This  has 
been  appropriated  as  follows: — ;^i2o,ooo  for  dividends;  deben- 
ture sinking  fund  reserve,  ;f  6,666 ;  provision  for  new  f'la.nt, 
jf 30,000;  equalisation  fund,  jf 60,472  against  ;^49,i67.  Liquid 
assets  exceed  liabilities  by  ;£558,i43,  against  ,£483,350.  The 
tailings  contract  with  the  Amalgamated  Zinc  (De  Bavaysj, 
Ltd.,  has,  on  account  of  strikes,  war,  and  other  causes,  been 
extended  to  April  30,  1919,  on  which  date  the  agreement  will 
be  determined  absolutely.  Strikes  were  the  cause  of  the 
diroinshed  output,  but  the  effect  of  these  was  fully  offset  by 
the  higher  price  realised  for  silver. 

Geevor  Tin.— During  the  year  ended  December  31  the  ton- 
nage crushed  by  this  mine  decreased  from  23,754  to  21,521, 
and  the  production  declined  from  3704  tons  to  339J  tons.  But 
owing  to  the  higher  price  of  the  metal,  the  amount  realised  was 
;f7,8oi  more  at  ,£44,553. 

HoLLiNGER  Consolidated.— The  gross  profits  for  1917  were 
$2,009,549,  and  after  writing  off  $100,000  the  nett  profit  comes 
to  $1,720,314,  equivalent  to  about  7  per  cent,  on  the  issued 
capital.  There  were  crushed  508,000  tons  of  ore,  yielding 
*4i373,635,  •>"'  the  ore  reserves  have,  nevertheless,  been  in- 
creased from  $35,185,535  to  $40,231,435.  This  means  that 
approximately  $10,300,000  of  new  ore  has  been  exposed  during 
the  vear. 


DIVIDENDS     ANNOUNCED. 

Anglo-Java  Rubber  and  Produce  Co. — Interim  of  e  per  cent> 
(actual),  less  tax,  for  1917,  to  be  paid  on  March  27." 

lirowett,  Lindley  and  Co.,  Engineers,  Manchester. — Final 
3  per  cent.  (a.;tual)  on  the  preference  shares,  and  also  an 
additional  4%  per  cent,  on  account  of  arrears,  making  io}4 
per  cent,  for  year.  6  per  cent,  (actual)  is  recommended  on  the 
ordinary   shares. 

Rank  of  Australasia. — 14  per  cent,  per  annum,  and  bonus  ol 
I2s.  per  share,  together  £3  8s.  per  share,  equal  to  17  per  cent.' 
per  annum,  tax  free;  ^30,000  to  reserve;  ^^123, 309,  against 
;£i 22,663,   forward. 

Bolckow,  Vaughan  and  Co. — Interim  of  4  per  cent.,  less 
tax,  on  the  ordinary  shares. 

Bournemouth  and  Poole  Electricity  Supply  Co. — Final  on 
ordinary  shares  at  rate  of  7  per  cent,  per  annum,  less  tax,  for 
half-year  ended  December  31,  making  6  per  cent,  for  the  year, 
the  same. 

British  Insulated  and  Helsby  Cables. — Final  7J4  per  cent., 
together  with  a  bonus  of  10  per  cent. 

Buenos  Ayres  Great  Southern  Railway  Co. — A  year  ago  the 
dividend    was    2    per    cent. 

Borax  Consolidated. — 2S.  per  share  on  deferred  ordinary 
shares,  less  tax,  making  15  per  cent,  for  the  year,  the  same  air 
last  year. 

Buenos  Ayres  Western  Railway. — A  year  ago  an  interim  of 
2  per  rent,   was  paid. 

Brazilian  Traction,  Light  and  Power  Co. — Quarterly  1% 
per  cent,  on  fully-paid  cumulative  preference  shares,  payable 
(in   April   i. 

Chino   Copper    Co. — $1.50,    payable    March   30. 

County  of  London  Electric  Supply  Co. — Final  on  ordinary 
shares  at  rate  of  9  per  cent,  per  annum,  less  tax,  for  half-year, 
making  7  per  cent,  for  year,  the  same. 

Consolidated  Gas,  Electric  Light  and  Power  Co.  of  Balti- 
more.— Regular  quarterly  $2  per  share,  or  at  rate  of  8  per 
cent,   per  annum,  on  capital  stock,   payable  April   i. 

Court  Line. — Final  of  7  per  cent.,  making,  with  interim  of 
!  per  cent,  already  paid,  10  per  cent,  for  year  1917.  For  1916 
the   dividend  was  20  per  cent. 

Canadian  General  Electric  Co. — Quarterly  2  per  cent,  to 
March  31,  being  at  rate  of  8  per  cent,  per  annum  on  common 
stock,  the  same  as  a  year  ago. 

Coliseum  Syndicate. — Final  of  12J  per  cent,  (actual),  less 
tax. 

Dominion  Steel  Corporation,  Limited. — At  rate  of  ij  per 
cent,  on  common  shares,  payable  on  April  i,  against  i  per  cent, 
a  year  ago. 

Dimbula  Valley  (Ceylon)  Tea  Co. — Final  3  per  cent,  for  half- 
year  to  March  31  on  preference  shares. 

Eastmans,  Limited. — 5  per  cent,  on  ordinary  shares  for  1917, 
against  nil. 

Festiniog  Railway  Co. — Final  at  rate  of  5  per  cent,  per 
annum  on  5  per  cent,  preference  shares  (making  5  per  cent, 
for  year). 

General  and  Commercial  Investment  Trust. — At  rate  of  7 
per  cent,  per  annum  on  deferred  stock  for  six  months,  making 
a  distribution  for  year  of  5^  per  cent.,  the  same  as  a  year  ago. 

Hackney  and  Shepherd's  Bush  Empire  Palaces. — Final  2j 
per  cent  (actual),  less  tax. 

Imperial  Tobacco  Co.  of  Canada. — Interim  of  ij  per  cent,  on 
issued  ordinary  shares,  payable  on  March  28,  the  same  as  a. 
year  ago. 

Lambert  Brothers. ^ — Interim  of  5  per  cent,  on  ordinary 
shares,  the  same  as  a  year  ago. 

Leeds  and  Liverpool  Canal. — On  preference  stock  for  year 
1917  at  rate  of  3J  per  cent. 

Leicester  Palace  Theatre. — Final  of  5  per  cent,  (actual),  less 
tax. 

Molsons  Bank,  Montreal. — 2 J.4  per  cent.,  being  at  rateof  11  per- 
cent, per  annum,  for  current  quarter,  payable  by  Parr's  Bank 
on   Anril   2. 

Middle  West  Utilities  Co. — $.50  cash  and  $1  in  common 
stock  per  share,  payable  on  April  i  to  common  stockholders. 
Cash  covering  quarter  to  February  15  and  stock  covering  half- 
year  to  February   15,   1918. 

Manchester  Hippodrome  and  Ardwick  Empire. — Interim  5 
per  cent,  (actual),   less  tax. 

Manchester  Royal  Exchange,  Ltd. — 5  per  cent.,  less  tax,  the 
same  as  last  year. 

North  British  Locomotive  Co. — 8  per  cent.,  free  of  tax,  on 
ordinary  shares  for  year  1917.  The  previous  was  7i  per  cent, 
paid  out  of  reserve  for  the  year  1916. 

New  Tamarugal  Nitrate  Co. — Final  10  per  cent.,  less  tax, 
making  a  total  of  15  per  cent,  for  year.  Income  bond  interest 
at  4  per  cent,  per  annum,  and  drawn  bonds  will  be  paid  on 
March  22. 

Netting  Hill  Electric  Lighting  Co. — 3s.  per  share,  less  tax, 
on  ordinary  shares. 

Oroville  Dredging  Co. — Interim   (No.  16)  6d.  per  share,  less 
tax.  payable  on  March  25.  the  same  as  a  year  ago. 
Pearson  and  Knowles. — Interim  3J  per  cent. 
Pennsylvania  Water   and  Power   Co.— Regular  quarterly  $it 
per  share,  or  at  rate  of  5  per  cent,  per  annum,  on  capital  stock, 
payable  April   i. 

Pav  Consolidated  CiiDDer  Co. — *i.oo,  pa'vab'e  starch  30. 
River  Plate  Trust,  Loan,  and  Agency  Co.— Further  11  per 
cent,  on  A  shares  and  bonus  of  is.  per  share  (both  less  tax), 
making  with  interim  22  oer  cent,  for  the  year,  the  s.inie. 
Further  4  oer  cent,  on  B  shares  and  bonus  of  is.  per  share  (both 
less  tax),  making  8  per  cent,  for  year,  the  same  as  for  1916. 


256 


XT  be  3nve6tot8'  IReview. 


March  9,   1918. 


St.  Augustine's  Parade  Hippodrome,  Bristol. — Final  5  per 
-cent,  (actual),  less  tax. 

Salt  Union. — 15  per  cent.,  the  same  as  last  year. 

Shamva  Mines. — Interim  is.  per  share,  less  tax,  for  the 
current  quarter,  bein^  the  first  interim  for  year  to  December  31, 
1918,  payable  on  April  12.    A  year  ago  is.  6d.  was  paid. 

South  African  Gold  Trust. — 2s.  per  share,  free  of  tax,  for  year 
1917,  against  is.  6d.  for  1916. 

Sephinjuri  lihccl  Tea. — Third  quarterly  10  per  cent.,  less 
tax ;  the  same  as  a  year  ago. 

Stewarts  and  Lloyds,  Ltd. — For  the  year  ending  Dec.  .31 
last:  2S.  per  share  and  a  bonus  of  6d.  per  share  cm  deferred 
shares ;  ^  100,000  to  general  reserve,  ^^20,000  to  employees' 
benefit  reserve,  and  ^loo.ooo  forward. 

Toronto  Railway  Co. — On  ordinary  shares  i  per  cent,  for 
ijuarter  ending  March  31,  payable  on  April  i. 


American  Business  Notes. 

A  dispute  has  arisen  in  the  United  States  between 
Congress  and  the  President.  Some  echoes  of  it  are 
to  be  found  in  Press  messages  from  New  York,  but 
not  enough  to  make  us  understand  its  significance. 
Briefly  stated,  the  President  has  caused  a  Bill  to  be 
introduced  in  the  Senate  giving  him  the  power  of  a 
dictator.  It  is  entitled  "  A  Bill  Authori.sing  the  Pre- 
sident to  Co-ordinate  and  Consolidate  the  Executive 
Bureaus,  Agencies,  Offices  and  Officers,  and  for  other 
purposes  in  the  Interest  of  Economy  and  the  More 
Effective  Administration  of  the  Government."  Should 
this  mea.sure  l>e  carried  unmodified,  the  Piesident  will 
be  constituted  unchallengable  despot  of  the  whole  ad- 
ministration of  the  United  States  during  the  war  and 
for  a  year  after  the  war  ends.  On  him  will  devolve 
the  duty  of  co-ordinating  or  consolidating  anv  execu- 
tive agency  and  the  personal  control  of  every  office  or 
officer.  He  may  transfer  from  one  Department  to 
another  functions  and  individuals  without  question  or 
hindrance.  Naturally,  a  sweeping  measure  of  this 
kind  is  bitterly  opposed  by  many  members  of  the 
Senate,  and  Senator  Hitchcock  has  declared  that 
'■  there  is  not  a  ghost  of  a  chance  of  the  measure  to 
pass,  not  at  all.  I  doubt  if  it  ever  gets  out  of  the 
Judiciary  Committee,  but  if  it  does.  Congress  may  be 
depended  upon  to  kill  it,  for  if  this  Bill  were  passed 
the  President  would  have  autocratic  powers  such  as  no 
other  man  on  the  .face  of  the  earth  has  to-day.  His  will 
would  be  absolute,  and,"  he  added,   "no  such  power 


ought  to  be  given  any  executive.  It  is  too  drastic 
and  entirely  contrary  to  .America  ideas."  Another 
.senator  called  the  Bill  "  an  astonishing  assumption  of 
the  rights  of  Congress."  It  is  not  for  us  to  intervene 
in  a  dispute  of  this  kind,  but  our  own  experience  in 
this  war  sometimes  inclines  us  to  wish  that  we  al.so 
had  a  dictator,  if  we  could  find  the  man,  and  that  his 
powers  were  great  enough  to  enable  him  to  co-ordi- 
nate and  consolidate  our  bewildering  multiplicity  of 
Departments,  many  of  them  overlapping  Departments. 
Indeed,  as  it  is  we  do  live  under  a  sort  of  dictatorship, 
unacknowledged,  without  legal  sanction,  but  also  irre- 
sponsible and  no  wise  effectually  checked  by  Parlia- 
ment. 

That  President  Wilson  has  encountered  the  samj 
kind  of  multiplication,  sub-division,  and  overlapping 
di  ejxecutive  departments  in  organising  America's 
share  in  the  war  is  probably  only  too  true,  and,  that 
being  so,  it  is  natural  for  a  strong  man  to  dejire  to 
elevate  himself  into  a  position  where  he  could  act  at 
once  upon  his  own  initiative  ;.but  it  is  not  altogether 
true  that  he  could  make  himself  really  irresponsible  to 
the  democracy  by  this  or  any  other  means.  When 
the  war  is  over,  the  nation  will  resume  its  rights  in 
every  respect,  and  .Tmongst  these  rights  will  be  the 
liberty  to  investigate  the  conduct  of  the  supreme  execu- 
tive olficer  during  his  term  of  dictatorship.  Still,  the 
proposal  goes  against  the  democratic  sense  of  the 
nation,  and  we  shall  not  be  at  all  surprised  if  the  Bill 
is  rejected,  for,  after  all,  President  Lincoln,  to  whom 
one's  mind  goes  back  more  and  more  in  this  time  of 
crisis,  had  to  dominate  and  carry  through  the  most 
tremendous  and  awful  convulsion  any  country  ever 
encountered,  and  to  conduct  the  Civil  War  to  a  suc- 
cessful conclusion  without  possessing  any  such  power 
as  President  Woodrow  Wilsor*  now  demands.  Already 
President  Wilson  has  had  far  greater  powers  given  to 
him  than  Abraham  Lincoln  ever  had,  and  if  he  is  really 
the  strong  man  in  action  which  he  seems  to  be  in 
words,  it  ought  to  be  possible  for  him  to  briner  har- 
mony and  concentration  of  purpose  into  the  conduct  of 
bis  subordinates  without  the  help  of  a  law  so  essen- 
tially revolutionary  and  subversive  of  rights  as  this 
one  appears  to  be. 


REFUGE  ASSURANCE  COMPANY,  LTD. 

Ciller   Offloei     OXFOXCI3    B.'VSfE'Bil},    ]M[J(.>f cxxE:srrE:xt. 


EXTRACT  FROM    THE   ANNUAL    RtpORT,    for    the    Year    Ending   31at   December.   1917. 

ORDINART  BRANCH.— The  number  oJ  Policies  iuaei  darini  the  year  was  35,753,  aisuring  the  «nm  of  £3,094,371 16s.  83.,  and  prodnoiiig  a  yearly  renewal 
Pr*ininm  Income  of  £207,836  8s.  ii.  The  sinRle  Premiums  amounted  to  £101,249  8s.  Od.  as  compared  with  tne  sum  of  £596,757  78  Oii.  received  In  rcspMct 
of  single  Premiums  during  the  previous  year.  The  Premium  Income  for  the  year  was  £1,409,359  153.  8d.  The  increase  in  the  Pr.'mium  Income — oxclnding 
single  nremi'ims  -amounted  to  £33,166  15».  4d.,  when  contrasted  with  the  previous  year.    The  amount  paid  in  respect  of  Claims  was  £792,098  lis  Ud. 

INDUSTRIAL  BRANCH.— The  Premium  Income  for  the  year  amounted  to  £2,474,116  12s.  lid.,  being  an  increase  of  £137,028  14s.  8d.  over  the  prerions 
year.  The  amount  paid  in  respect  of  Claims  was  £1,230,176  38.  8d.  These  figures  include  the  corresponding  trantitctiona  in  respect  of  the  Sickness  Assurance 
Account. 

The  aggregate  Premium  Income  of  both  Branches  for  the  year  was  £3,883,476  8s.  74.  The  Premium  Income  in  respect  ol  both  Branches— excluding 
Single  Premiums-represents    an  increase  of  £170,195  lOs.  Od.,  when   contrasted  with  the  previous  vear. 

The  total  amount  of  Claims  paid  in  both  Branches  since  the  establishmant  of  the  Company  is  £25,976,259  3s.  9d. 

The  total  funds  of  the  Company  amount  to  £14,768,113  Os.  9d.,  representing  an  increase  during  the  year  of  £1,039,276  33.  6d. 


Oaneral  Balance  Sheet  of  the  ReTuge  Aaauranoe  Company,  LtA.  tor  the  Year  entling  31at  December, 


„u      ..  ..  LIABILITIES. 

Shareholders'  Capital,  paid  up  £300,000 

Ordinary  Branch  Assurance  Fund    10,526,455 

Ordinary  Brunch  Investments  Reserve  Fund  395,000 

Industrial  Branch  Assurance  Fund 3,446,657 

ladostrial  Branch  Investments  Reserve  Fund 100,000 


£14,768.113 
ASSETS.  ^==^ 

Mortgages  on  Property  within  the  United  Kingdom £1,997,164 

tioans  on  Parochial  and  other  Public  Rate* 688.993 

Do.     Life  Interests 8*000 

Do.     Reversions '         10  000 

Do.     Stocks  and  Shares  '.         15',750 

Do.     Company's  Policies  within  their  Sorrender  Valaea   l,360,'l37 
IKTaSTinHTS :— 
Deposit  with  the  High  Court  (£25,000  3  per  cent.  India  Btook)       20,766 

isntinh  Oovernment  Securities 3  554  345 

Municipal  and  County  Securities,  United  Kingdom  ... .....'.".      '284886 

Indian  and  Colonial  Oovemment  Seonritiei 538,865 

Do.  Provincial  do .'.'       152'"'52 

Do.  Municipal  do '.'.*,      347*386 


8  4 
16  11 
0    0 


12  6 
12  8 
18    8 


ASSETS— confinvui. 

Foreign  Oovemment  Securities 

Do.      Provincial  do 

Do.      Municipal  do 

Railway  and  other  Debentures  and  Debenture  Stocks— Home 

and  Foreign 

Railway  and  other  Preference  and  Guaranteed  Stocks 

Do.      and  other  Ordinary  Stocks 

Rent  Charges 

Freehold  Ground  Rents 

House  and  Office  Property    

Agents'  Balances 

Outstanding   Premiums  £391,205  4  0— tM»  Abatement    to  pro- 
vide, in  ^ofta,for  Loss  of  Revenue  occasioned  bv  theoperation 
of  the  CourU  (Emergencv  Powers)  Act,  1914  £237,564  19    8  . . 
Do.         Interest,  Dividends,  and  Rents  (less  Income  Tax) 

Interest  accrued  but  not  payable  (less  Income  Tax) 

Cash  :—  On  D.>posit  

In  hand  and  on  Current  Aooounk 

Fotnitare  ani  Fixtorea _ 

£: 


1917. 

£ 

373,7S5 

10,466 

158,746 

3,060,212 

J87.C07 

35.196 

68,248 

9.812 

954,276 

52,283 


1S3.640 
1^,915 
69,229 
272,600 
140,006 
47,767 


4    4 

16  10 
10    2 

0  0 

1  10 
3  4 
0    9 


PHILIP  SMITH,  1  Managing 

JAMES  8.  PROCTOR,   \  Directors. 
ROBERT  MOSS,  Secretary. 


J.  PROOTOR  QREEN,  )  OenerkI 

W.  H.  ALDCROFT,  F.I.A.    )  Manager!. 


R.  WM.  OREEN,  Chairman. 
HENRV  THORNTON,  I  rn,,^*.,. 
JNO.  T.  SHUTT,  f  *««>«<»«• 


J  "_  — ^-___,     — --^^  «*a*Q    v««v   aaitf^^f  iiAaa  v^  \ji    laj^  ^^/v/ixii'^sa  j    ■  *mr»Dt»3  E»at«j     All  V  en*  ^AJi:aj*ia   k\jk    «a«v   jti»*    ^  »««»»-^ 

the  Assets  »nd  Tnvn.'in,»nt.. i.V-5  r-".i,l"V11,"~.''„  ?      '  J??"  Pr"Perly  Touched.  We  have  also  examined    the  Deeds  and   other  securities   representing 
31?t  o^December^TgiT  «oregoin«  Balance  Sheet,  and  we  certify  that  they  remained  in   the  Company's  possession  and  safe  cnstJdy  on  th.- 


Uaochuter,  19th  Februrj,  1918. 


(WALTON,  WATTS,  &  O*.,  Chutared  Aoooontftnts 


March  9,   1918. 


<^be  Juvestovs'  IReview* 


257 


COMPANY  MEETINGS. 


I 


PRUDENTIAL    ASSURANCE    COMPANY, 
LIMITED. 

YEAR'S  TOTAL  INCOMK  NEARLY  ;f2o,ooo,ooo. 

TOTAL    PAYMENTS    TO    POLICYHOLDERS     OVEK    ;<,9,70O,O0O. 

.  WAR    CLAIMS    ALREADY    PAID,    £3,4S(>>000. 

RESULTS    OF  THE    VALUATION. 

OVER    ;^IOO,000,000     INVESTED    FUNDS. 

SL'PPOKTING   THE   GOVERNMENT    LOANS. 

"THE     INHERENT     STRENGTH    OF    THE    COMPANY." 

The  annual  general  meeting  of  the  shareholders  of  this 
company  was  held  on  Thursday  at  142,  Holborn  Bars,  under  the 
presidency  of  Sir  Thomas  Dewey,  bt.,  the  chairman  of  the 
company. 

The  Secretary  (Sir  G.  E.  May,  K.B.E.)  read  the  notice 
convening  the   metting,  and  the   auditors'   certificate. 

Helping   Forward    the   War    Savings    Movement. 

The  Chairman,  who  was  received  with  cheers,  said  :  Ladies 
and  Gentlemen, — The  third  year  of  the  war  has  passed — 
indeed,  we  are  now  well  advanced  into  the  fourth — and, 
although  victory  has  jjot  yet  been  attained,  we  are  all  proud 
to  feel  that,  as  a  nation,  we  are  still  more  determined  to  .spare 
no  efiort  in  order  to  attain  such  victory.  During  the  past 
year  this  company  has  talcen  no  inconsiderable  part  in  matters 
relative  to  the  war,  both  as  regards  iJie  shouldering  of  war 
burdens  and  affording  active  support  to  the  Government  in 
every  possible  way.  As  everyone  is  aware,  this  is  Business 
Men's  Week,  and  a  special  endeavour  is  being  made  to  in- 
crease the  sale  of  War  Bonds  and  War  Savings  Certificates.  I 
feel  sure  that  the  shareholders  will  be  pleased  to  know  that 
the  Prudential  has  consistently  used  every  endeavour  to  help 
forward  the  war  savings  movement.  Our  outdoor  staff  have 
rendered  constant  assistance.  Our  actuary,  Mr.  Burn,  has 
4>een  a  member  of  the  Central  Committee  from  the  first,  and 
has  spent  a  large  portion  of  his  time  in  active  work  of  a  most 
important  n-iture.     (Hear,    hear.) 

Our  statistical  and  actuarial  departments  have,  and  are  still, 
undertaking,  free  of  all  cost  to  the  Government,  an  amount  of 
work  in  connection  with  the  accounts  of  over  40,000  War 
Sayings  Associations  throughout  the  country,  which,  we 
believe,  would  astonish  some  Government  Departments.  'Our 
own  War  Savings  Association  in  the  Head  OflSce  is,  I  under- 
stand the  largest  in  existence,  considerably  over  100,000 
-Certificates  having  already  been  purchased.  Recently  we  have 
instituted  a  kiosk  in  this  building,  which  is  doing  good  work. 
Many  of  our  staff  skilled  in  accountancy  are  voluntarily  giv- 
ing their  spare  evenings  to  the  work  of  auditing  the  accounts 
of  other  War  Savings  Associations.  However,  notwithstand- 
ing ouir  activities  in  connection  with  War  Savings,  as  well  as 
other  national  objects,  we  have  still  been  able  to  carry  on  our 
work  with  a  degree  of  success  which,  in  the  circumstances  is 
most  gratifying. 

Increased  Income. 

The  total  income  of  the  year  was  only  a  little  short  of  20 
■million  pounds,  the  actual  figure  being  ;^i9,88o,5oo,  which  is 
an  increase  of  ;^i,i79,366  over  thM  for  the  previous  year. 
(Cheers.)  Of  this  increa.se,  ^^403,382  is  due  to  interest,  and 
A7S4.37'  to  premiums.  There  has  been  an  increase  in  the  pre- 
miums  credited  in  all  three  branches.  In  the  General  Branch 
the  increase  was  ^10,201,  in  the  Ordinary  Branch  it  was 
^265,035,  and  in  the  Industrial  Branch  it  was  ;^497,i35.  I 
tnust,  however,  point  out  that  to  some  extent  the  increase  in 
the  Industrial  Branch  is  due  to  the  fact  that  our  accounts  are 
made  up  to  the  Monday  in  each  week,  and  in  1917  there  were  1:3 
Mondays  to  take   into  account. 

Record  Increase  in  the  Ordinary  Branch  Business. 

The  new  business  in  the  Ordinary  Branch  shows  a  record 
increase.  The  new  premium  income — namely,  £cib-],^-]2 — was 
much  in  excess  of  that  for  any  previous  year.  Some  consider- 
able portion  of  this  increase  was  due  to  our  National  War 
Bond  policv,  under  which  the  policy-holder  is  enabled  to  pur- 
chase his  War  Bonds  by  instalments  on  very  favourable  terms. 
During  the  year  our  sy;stem  of  dealing  with  proposals  on  nndor- 
average  lives  has  received  careful  consideration,  and  it  has 
been  decided  to  offer  .suitable  terms  to  practically  all  proposers, 
however  poor  their  physique  or  general  state  of  health.  Since 
June  we  have  issued  a  number  of  policies  to  persons  who  would 
previously  have  been  considered  uninsurable,  on  terms  mutually 
satisfactory  both  to  the  assured  and  ourselves. 
Cl.aims  and  Other  Payments. 

On  the  other  side  of  the  account  the  claims  paid  exceed 
£9,200.000,  and  the  totaJ  payments  to  our  policy-holders  ex- 
ceed ;^9,7oo,ooo,  or  more  than  ^^31,000  for  each  working  day. 
The  .war  claims  for  the  year  have  again  been  exceedingly 
heavy,  and,  as  in  previous  years,  have  fallen  mainly  on  the 
Industrial  Branch.  The  amount  paid  was  ^^1,507,62^  on 
70,488  claims,  of  which  65,66s  were  in  the  Industrial  Branch, 
representing  claims  of  /i, 100,240,  and  4.8^3  were  in  the  Ordi- 
nary Branch,  representing  claims  of  /30S  385.  The  total  war 
claims  naid  up  to  the  present  time  amount  to  nearlv  /noo.ooo 
The  G'tkhral  Branch  :  Aircraft  Personal  Insurance  Policies. 

Ill  the  Gener.al  Branch  the  large  increase  is  mainly  due  to 
our  aircraft  personal  insurance  policies,  which,  we  believe, 
will  bocome  still  more  pooular  when  their  very  favourable 
terms  are  more  "enerallv  known.  We  all  hone  that  we  have  seen 
the  worst  of  the  air  raids,  but  I  think  any  prudent  person 
who  i.s  in  any  way  subject  to  this  risk  will  agree  that  the  ex- 


penditure of  20s.  for  a  policy  of  £,\,<X)0  is  a  wise  expenditure. 

It  will  also  be  observed  that  the  company  is  now  transact- 
ing trustee  anfl  executor  business.  The  many  advantages  to 
settlers  and  to  testators  of  appointing  a  corporation  of  un- 
doubted integrity  such  as  the  I'rudential  to  act  as  trustee  and 
executor  are  becoming  more  widely  recof>nised,  and  we  antici- 
pate a  very  considerable  expansion  in  this  class  of  business  in 
the  near  future. 

The  Valu.ation  :  Surplus  of  the  Ordinary  Branch. 
Turning  to  the  results  of  the  valuation,  the  surplus  of  the 
ordinary  branch  amounts  to  ^1,584,540,  which  is  an  increase  of 
;^i66,3oo  over  the  figure  for  the  previous  year.  For  the  years 
1915  and  1916  you  will  remember  that  the  directors  did  not 
distribute  any  surplus  among  the  policyholders  and  shareholders 
from  this  branch.  During  the  two  years  ;if  1,000,000  was  added  to 
the  investments  reserve  fund,  and  £1,500,000  was  carried  to  a 
contingency  fund.  This  contingency  fund  was  set  tip  for  the 
purpo.se  of  safeguarding  the  rights  of  the  holders  of  participat- 
ing policies  in  the  Ordinary  Branch.  In  order  to  prevent  any 
hardship  or  inequity,  an  interim  bonus  of  £1  per  cent,  was 
paid  on  those  policies  which  became  claims  by  death  or 
maturity.  The  question  which  the  directors  have  had  to  con- 
sider was  whether  the  position  of  the  Ordinary  Branch  justi- 
fied them  in  withholding  a  similar  bonus  from  the  other  policy- 
holders. After  taking  all  possible  contingencies  into  account, 
the  directors  considered  that  they  could  with  safety  allocate  a 
bonus  at  tfie  same  rate  as  the  interim  bonus — namely,  £1  per 
cent,  on  the  sums  assured  for  each  year's  premium  paid  since 
the  last  declaration.  * 

National  War  Bond  Poiicies. 
In  order  to  do  this,  we  have  transferred  ;^i,ooo,ooo  from 
the  contingency  fund,  which  will,  therefore,  stand  at  £500,000. 
In  view  of  the  special  conditions  now  prevailing,  the  directors 
consider  that  it  would  be  inadvisable  to  allow  this  bonus  to  be 
cashed,  and  in  these  circumstances  it  has  been  decided  to  with- 
hold for  the  present  the  usual  cash  option.  In  those  cases, 
however,  where  it  is  desired  to  utilise  the  bonus  for  the  pur- 
pose of  paying  the  premiums  on  our  National  War  Bond 
policies,  facilities  will  be  afforded  wherever  possible.  These 
policies  can  only  be  issued  for  a  limited  time,  dependent  on  the 
issue  of  National  War  Bonds.  The  cashing  of  the  bonus 
where  required  for  National  War  Bond  purposes  must  result 
in  further  assistmg  the  Government.  Additional  War  Bonds 
will  thus  be  purchased,  and  at  the  same  time  the  policy-holder 
will  be  afforded  an  opportunity  for  a  favourable  invest- 
ment, which  will  not  be  available  when  the  present  issue  of 
War  Bonds  is  withdrawn.  Of  the  remainder  of  the  surplus, 
£400,000  has  been  added  to  the  investments  reserve  fundi 
which  now  stands  at  £2.400,000,  and  ;^i78,4i2  has  been  carried 
forward. 

Surplus  of  the  Industrial  Branch. 

In  the  Industrial  Branch  the  surplus  disclosed  by  the  valua- 
tion is  £616,260,  including  the  sum  of  ^^184, 530  brought  for- 
ward ;  this  compares  with  a  surplus  of  £1.000,802  for  iqT6. 
Of  this  surplus  ^300,000  was  transferred  to  the  investments 
reserve  fund,  which  now  stands  at  ;f  1,700, 000,  and  ^^92,470 
has  been  carried  forward.  It  will  thus  be  seen  that  in 
respect  of  the  profits  earned  during  the  year  the  position  of 
the  Industrial  Branch  is  very  different  from  that  of  the 
Ordinary  Branch.  The  Industrial  Branch  has  had  to  bear 
the  strain  of  the  war  in  a  much  greater  degree  than  is  the 
case  in  the  Ordinary  Branch.  Apart  from  the  question  of 
depreciation,  which  is  common  to  both  branches,  the  Industrial 
Branch  has,  as  I  have  already  stated,  suffered  more  severely 
on  account  of  war  claims,  and  in  addition  has  had  to  bear  a 
considerable  burden  on  account  of  the  Courts  (Emergency 
Powers)   Act. 

The  premiums  on  many  of  the  policies  under  the  Courts 
(Emergency  Powers)  Act  have  been  unpaid  for  two  or  three 
years,  and  this  accounts  in  part  for  the  large  increase  in  the 
amount  of  outstanding  premiums  shown  in  our  balance-sheet. 
During  1918  alone  we  may  expect  that  the  unpaid  premiums 
under  the  Act  will  exceed  £2^0,000 — indeed,  with  any.  con- 
siderable alteration  of  the  present  conditions  of  employment, 
this  figure  may  be  greatly  exceeded.  We  have  also  to  take 
into  account  the  future,  whxh  includes  the  transition  period 
at  the  close  of  the  war,  when  our  difficulties,  if  the  A'"t  is 
still  in  force,  are  likelv  to  lie  gre.atlv  increased.  In  these 
circumstances  we  had  no  option  but  to  retain  the  reserve  of 
£■3^0,000. 

The    Anticipated    Great   Development   After   the    War, 

Apart  from  the  duty  of  getting  on  with  the  war.  which 
must  come  first  of  all,  one  of  the  most  encouraffing  signs  of 
the  times  is  the  manifest  desire  of  our  great  financial  and 
commercial  institutions  \o  render  their  organisations  as  efficient 
as  possible  in  order  that  thev  may  be  in  a  position  to  meet, 
to  assist,  and  even  to  guide  the  great  development  which  we  all 
anticipate  will  be  vouchsafed  to  this  nation  and  Empire  after 
the  declaration  of  peace.     (Hear,  hear.) 

In  view  rf  the  mgnitude  of  our  invested  funds,  it  is  clear 
that  our  financial  responsibilities  must  be  prorKirtinnately 
serious,  and  no  trouble  has  been  spared  in  order  that  the 
best  results  mav  be  secured.  Everv  investment  made  bv  the 
company  is  in  the  first  place  investigated  and  rervorted  on  by 
one  or  more  of  our  expert  oflicPrs,  and  afterwards  forms  the 
siibtPCt  of  constant  attention  and  consideration.  The  Govern- 
ment.  as  you  know,  turned  to  the  Pnidentiil  when  they 
wanted  for  the  reeulation  of  the  American  exchanee  a  man 
to  control  the  purchase  and  deposit  of  American  securities, 
and  the  honour  of  Knight  of  the  Order  of  the  British  Empire 


'58 


Zbc  Snve^tocsMRevicw, 


March  9,  1918. 


which  the  King  bestowed  upon  our  secretary,  Sir  George  May, 
early  in  this  year  was  a  fitting  re  cgnition  of  the  services  he 
was  able,  with  the  cordial  consent  of  the  company,  to  render 
to  the  nation.  (Cheers.)  When  making  our  investments  it  is 
not  merely,  nor,  indeed,  mainly,  a  question  of  obtaining  a 
slightly  higher  rate  of  interest  which  is  the  preoccupation  of 
your  directors,  though  it  is  of  course  incumbent  upon  them 
to  make  the  best  possible  use  of  the  money;  in  the  view  of  the 
board,  their  responsibility  does  not  end  there.  We  endeavour, 
not  only  at  the  time  of  investment,  but  subsequently,  to  be 
and  to  remain  acquainted  with  the  use  to  which  our  capital 
is  put  and  to  take  a  sustained  interest  in  the  administration 
of  those  States,  corporations,  companies,  or  individuals  to 
whom  we  entrust   it. 

"  The  Most   Striking  Fkatube  ok  the  Halance-sheet." 

As  you  may  imagine,  at  the  present  time,  our  interest  Is 
principally  directed  to  our  own  country,  for  the  most  striking 
feature  of  the  balance-sheet  is  the  increase  «n  out  holding  of 
Govemincnt  securities  of  no  less  than  ;£9,5oo,ooo  during  the 
year — (cheers) — the  net  increase  in  our  funds,  after  deducting 
th«  balance  of  the  advance  obtained  from  our  bankers,  being 
over  ;^4, 500,000.  As  I  said  in  my  speech  last  year,  we  have 
chosen  the  path  of  supporting  Government  loans  with  all  our 
available  resources,  and  shall  conitiniue  to  do  so  as  long  as 
the  necessities  of  the  country  demand  it.  (Hear,  hear.)  To 
carry  out  this  policy  involved  the  obtaining  of  an  ad'vance  from 
our  bankers  of  ^fc, 000,000,  which  at  the  end  of  the  year  had 
been  rediuced  to  /j, 487, 500,  and  has  by  now  been  further  re- 
duced to  under  ^3,000,000.  It  is  necessary  to  go  back  over 
60  years  in  the  history  of  the  Prudential  in  order  to  find  an 
item  in  the  balance-sheet  representing  a  loan  obtained  by  the 
company.  (Laughter.)  The  present  borrowing  is  one  we  are 
glad  to  place  on  record — (hear,  hear) — for  it  was  effected  in  re- 
sponse to  the  request  made  by  the  Chancellor  of  the  Exchequer 
that  we  should  support  the  War  Loan  by  all  the  means  in  our 
power.  It  was  possible  for  us  to  have  reduced  the  loan 
by  a  much  greater  sum,  but  we  felt,  when  National  War  Bonds 
were  issued,  that  the  interests  of  the  na.tion  demanded  we 
should  purchase  these  bonds  rather  than  further  reduce  the 
loan.  By  the  end  of  the  year  we  had  bought  practically 
;f  1,000,000  of  War  Bonds,  ar.d  since  that  date  have  continued 
to  purchase  them  at  the  rate  of  over  _if7o,ooo  per  week.  We 
confidently  antici.pate  moich  larger  weekly  purchases  in  the 
near  future.     (Cheers.) 

The  Present   System  ok  Government  Borrowing. 

In  this  connection  I  should  like  to  say  a  word  n  praise  of 
the  present  sysitem  of  Government  borrowing.  In  spite  of  the 
protracted  duration  of  the  war,  it  is  encouraging  to  note  that 
the  rate  of  interest  paid  by  the  Government  on  National  War 
Bonds  is  no  greater  than  that  paid  on  the  Five  per  Cent.  War 
Loan  when  it  was  issued  in  February,  1917.  This  fact,  coupled 
with  the  statement  of  the  Chancellor  of  the  Exchequer,  made 
early  la.st  year,  that  it  was  not  the  intention  of  the  Government 
to  issue  loans  at  any  higher  rate  than  that  then  ,paid,  has  un- 
doubted  ly  had  the  effect  of  steadying  the  prices  of  investments 
and  checking  depreciation.  (Hear,  hear.)  This,  in  itself,  is  of 
enormous  itn,portance  to  a  com,pany  holding  over  ^^100,000,000 
invested  funds.  Moreover,  the  practice  of  issuing  War  Bonds 
in  a  steady  stream,  rather  than  making  a  huge  issue  at  one 
time,  not  onily  avoids  dislocation  of  the  Money  Market,  but  is 
particularly  suitable  to  a  company  like  ourselves,  with  a  large 
income  flowing  in  week  by  week.  We  are  doing,  and  will  do, 
all  in  our  power  to  support  National  War  Bonds,  and,  in  the 
words  of  the  manifesto  issued  by  the  War  Savings  Committee, 
which  you  may  have  seen  in  the  papers,  "  You  cannot  do  better 
than  follow  the  Prudential."     (Cheers.) 

I  am  glad  to  say  that  the  fall  in  the  values  of  our  securities 
has  been  much  less  this  year  than  in  any  year  since  the  com- 
mencement  of  the  war,  and  had  it  not  been  for  the  effect  of 
the  news  from  Russia,  in  which  country  we  hold  securities 
representing.  I  am  pleased  to  say,  only  about  ij  per  cent,  of 
our  funds,  our  further  depreciation  this  year  would  have  been 
relatively  very  small.  We  considered,  however,  that  the  policy 
of  s«fety  we  have  followed  consistently  during  the  war  should 
be  continued. 


^  The  Company's  Investment  Reserve  Funds. 
Our  investment  reserve  funds  have  now  reached  the  magnifi. 
ceat  total  of  ^4,100,000.  If  to  this  we  add  the  sum  of  over 
^S.ooo.ooo  written  off  out  Stock  Exchange  securities  in  the  siix 
years  preceding  the  war,  we  have  a  total  of  over  /g,ooo,ooo 
w^ch  has  been  applied  to  meet  depreciation.  It  would  be 
dimoult  to  find  a  more  striking  example  of  the  inherent 
strength  of  the  company,  or  a  more  happy  augury  for  the  future. 
the  financial  reputation  of  the  nation  is  being  tried  by  a 
?^2^.u  .*T"*'y  .*'  intense  as  it  is  ynparalleled,  and  you  will 
^H^„-^*  .•  '"t""«nance  of  our  policy  of  sound  and  careful 
fh^H?!^  °",  °u  '?^'  '""^^  '"  ™"'«  tl'^"  ever  incumbent  on 
Lart  of^W  °-  '*"*  P'-"d«"ti«l-  The  question  as  to  whether  any 
Et^i^i  A  '"'*^««T"*  •***"«  '""^s  should  be  employed  in 
writing  down   the  value  of  investments   was  again  considered 

rte  ?mno«Th-?7-     /'  *^^   i^owever,   decided  that  in  view  of 

l^fer^he^^  ^7  °'  l^^"^   '^^   "^"'"^'^   ^»l"e'   "«  securities 
after  the  virar  it  was  better  to  leave  the  fund  in  the  form  of  a 
reserve  until  more  settled  conditions  prevail 
J,    .  .A  Cheque  for  ^^628,000. 

has ''beerYhll'"?^  V\*  commencement  of  the  war  the  Prudential 
I^t^nr  in  .HHr»  •  ''*'  ^J^e  great  financial  transaction. 
>«  J^^  vv  T  ^  Tu  '  Z^f"'^^  '°  «he  application  for 
£r^'X'^  War  Loan,  although  it  did  not  immediately  con- 
cern  the  period  then  under  review.    This  is  by  far  the  largest 


sum  that  has  ever  been  the  subject  of  a  single  application,  ana 
quite  eclipses  our  ear!ier  efforts  in  the  previous  War  Loans. 
It  was  rendered  possible  by  the  utilisation  of  our  large  liquid 
assets  in  the  shape  of  Treasury  Bills  which  had  been  accumu- 
lated during  1916  in  anticipation  of  some  such  ca'I  on  the  com- 
pany's resources.  The  dividend  on  this  War  Loan  fell  due 
last  December,  and  the  directors  decided  that  it  should  be  in- 
vested in  National  War  Bonds.  At  that  time  a  Tank  was  in 
Trafalgar  Square,  and  we  suggested  to  the  War  Savings  Com- 
mittee that  if  the  Tank  would  call  at  Holborn  Bars  we  would 
make  a  record  subscription.  (Laughter  and  cheers.)  The 
Committee  gladly  fell  in  with  the  .suggestion,  and  after  a 
somewhat  adventurous  voyage,  due  to  internal  troubles,  a  Tank 
arrived  at  the  head  office  about  two  hours  late. 

As  you  may  imagine,  the  arrival  of  the  monster  and  the 
ceremony  of  handing  to  the  War  Savings  representative  a 
cheque  for  ;f628,ooo  attracted  a  considerable  gathering  of 
sightseers  in  front  of  these  offices,  and  I  was  able  to  take  the 
opportunity  of  addressing  them  from  the  top  of  the  Tank,  and 
urging  them  to  invest  in  War  Bonds.  (Hear,  hear.)  This 
being  the  first  voyage  of  the  "  Wandering  "  Tank,  the  occasion 
was  considered  a  matter  of  such  public  interest  that  cinemato- 
graph films  were  taken  by  several  of  the  leading  firms  and 
shown  in  England  and  the  Colonies  during  the  following 
weeks.  The  idea  of  the  Wandering  Tank  thus  initiated,  wa» 
taken  up  enthusiastically  in  other  parts  of  the  metropolis,  with 
great  advantage  to  the  sale  of  War  Bonds. 

During  a  period  of  the  year  under  review  there  prevailed 
exceptionally  favourable  rates  of  exchange  to  sellers  of  Scan- 
dinavian securities.  We  were  ab'e  to  take  advanuge  of  these 
conditions,  and  sell  a  considerable  portion  of  our  holdings  of 
these  .securities  at  very  high  prices.  The  funds  thus  obtained 
have  been  reinvested,  with  the  result  that  we  have  obtained- 
securities  whTch  we  value  more  highly,  and  which  yield  much 
more  remunerative  rates  of  interest. 

Industrhl  Assurance  Companies  and  Societies. 
•  Many  of  the  questions  with  which  we  are  concerned  are 
naturally  common  to  other  assurance  companies,  but  there  are 
some  problems  which  specially  affect  industrial  assurance  com- 
panies and  societies.  In  the  former  class  the  mortality  rate  is 
an  instance  in  point,  and  in  the  latter  class  the  re'afionship 
between  the  comp»any,  its  staff,  and  the  policyholders.  Dealing 
with  the  subject  of  mortality,  our  business  is  so  vast  and  our 
22|  mil'ions  "of  policies  are  so  evenly  distributed  throughout 
the  length  and  breadth  of  the  land  that  it  is  not  surprising 
that  our  mortality  experience  very  closely  fol'ows  that  of  the 
general  population.  In  the  f>ast  I  have  often  cal'ed  your  atten- 
tion to  the  f.act  that  whenever  and  wherever  an  accident  of  any 
magnitude  has  occurred,  involving  loss  of  life,  it  his  invari- 
ably been  found  that  a  ronsiderab'e  proportion  of  the  victims 
were  insured  in  the  Prudential.  It  is  therefore  in  no  way  sur- 
prisint;  that  the  war  cl.iims  which  we  have  paid,  more  parti- 
cularly in  the  Industrial  Branch,  have  been  almost  exactly 
proportionate  to  the  total  casualties  suffered  by  the  British 
Navy  and  the  British  Army. 

Mortality  Rates. 

You  have  in  your  hands  a  diagram  which  I  feel  sure  will 
prove  very  interesting.  Two  of  the  six  lines  represent  the 
rates  of  mortality  as  shown  by  the  latest  Census  Table  and  by 
the  third  English  Life  Table  used  for  purposes  of  our  va!ua- 
tion.  The  other  four  lines  represent  the  rates  of  mortality  ex- 
perienced by  the  whole  of  our  male  industrial  po' icy-holders 
during  the  years  1913,  1915,  igi6,  and  1917.  Vou  will  at 
once  see  that  bfore  the  war — namely,  in  1913 — our  mortality 
experience  a'most  exactly  reproduced  that  of  the  latest  Census 
Table,  particularly  at  the  military  ages.  During  the  years 
1915,  1916,  and  1917,  however,  the  mortality  experience  has 
been  abnormal  to  a  degree  which  it  is  difficult  to  realise. 
Thus,  for  example,  at  about  age  21  the  mortality  rate  in  1915 
was  five  times  that  of  our  pre-war  experience,  for  iqi6  it  was 
nine  times,  and  for  1917  about  12  times  that  of  our  pre-war  ex- 
perience. You  must  understand  that  these  rates  are  calcu- 
lated upon  the  whole  of  our  experience,  and  thus  represent  an 
average  on  a'l  policy-holders,  whether  on  active  service  or  at 
home  on  civil  duties.  In  endeavouring  to  estimate  the  strain 
on  the  company's  resources  which  the  payir-nt  of  these  claims 
has  involved,  it  must  be  remembered  that  at  the  younger  ages 
only  small  reserve  values  are  held. 

I  am  proud  to  think  that  the  Prudential  has  so  far  been  able 
to  pay  these  claims  on  the  lives  of  our  brave  defenders  without 
asking  for  any  additional  premiums  or  making  any  deduction 
from  the  sum  assured  in  the  case  of  all  policies  effected  before 
the  war.  (Cheers.)  You  may  be  able  to  form  some  idea  of 
what  this  means  by  looking  at  the  diagram,  and  noticing  that 
in  1917  the  rate  of  morta.'itv  at  about  age  20  was  equal  to  that 
at  about  age  64.  If  you  will  look  at  the  premium  rates  pay- 
able at  age  20  and  aee  64  you  will  perhaps  still  more  c'early 
realise  the  nature  of  the  burden  which  the  company  has  borne. 
There  are  several  other  features  of  interest  which  the  diaeram 
discloses,  one  of  which  is  thit  a'thoueh  the  war  claims  have 
been  .so  hi  eh  at  the  actual  fighting  aees  of  20  and  over,  there 
is  a  fallin?  off  at  the  training  ages  below  20.  This  point  is 
still  more  rlose'y  shown  by  a  comparison  of  actual  and  ex- 
pected claims. 

Child  Welfare  and  the  Saving  of  Infant  Lives. 

I  might  also  draw  your  attention  to  the  fart  that  at  the 
infantile  aees  the  rates  of  mortality  amongst  chM'^rfn  assured 
in  the  Prudential  are  lower  than  those  pxt>erienced  by  the 
general  population  at  the  same  ages.  (Hear,  hear.)  At  the 
present  time  attention  is  verv  propfrly  being  giv>Ti  to  child 
welfare  and  the  saving  of  infant  lives.     I  am  convinced  that  » 


March  9,   1918. 


Zbe  Jnvestors'  IRevtew. 


259 


I 


great  dccd  of  useful  work  is  possible  in  thia  direction,  more 
particuiariy  at  the  present  time,  when,  owing  to  the  necessity 
of  food  control,  there  is  increased  danger  to  the  health  of 
mothers  and  infants.  Our  own  experience  of  the  infantile 
rates  of  mortahty  has,  I  am  glad  to  say,  shown  an  almost  con- 
stant improvement  year  by  year.  For  1917,  however,  a  slight 
retrograde  raovem-ent  was  shown,  although,  with  the  excep- 
tion of  igi6,  it  is  still  much  the  best  on  record.  During  the 
two  months  of  the  present  year  our  records  show  a  somewhat 
increased  rate  as  compared  with  the  corresponding  period  of 
last  year.  The  weather  conditions  have  not,  in  our  opinion, 
boen  such  as  to  cause  this  increased  rate.  It  is  not  for  me  to 
say  whether  the  increase  has  been  due  to  the  difficulty  of  milk 
supply,  but  it  is  quite  evident  that  every  possible  available 
means  should  be  taken  for  safeguarding  the  health  of  our  future 
population.     (Hear,  hear.) 

Industrial  Assurance. 

Now  as  regards  the  relationship  between  the  company,  its 
staff,  and  the  policyholders.  From  the  time  the  Prudential 
embarked  upon  its  industrial  assurance  in  the  yrs.t  1854,  there 
has  been  ample  evidence  that,  to  use  a  hackneyed  expression, 
it  "  supplied  a  long-felt  want,"  and  it  ■should  be  remembered 
that  while  we  transact  a  large  and  increasing  Ordinary  Branch 
business  with  clients  in  more  affluent  circumstances,  the  bulk 
of  our  business,  even  in  the  Ordinary  Branch,  is  on  the  lives 
of  persons  of  limited  means.  Our  annual  premium  income 
has  reached  a  total  of  ^f  14,802. 571,  and  in  this  fart  and  in  our 
increasing  volume  of  new  business  may  be  found  the  most 
conclusive  indications  that  we  enioy  the  full  confidence  of  the 
public.  (Hear,  hear.)  In  our  view,  there  are  two  main  prin- 
ciples which  ought  to  be,  and  must  be,  observed  in  the  con- 
duct of  industrial  assurance.  They  are  the  neces-ity  for  the 
strictest  economy  in  administration  and  the  equitable  distribu- 
tion  of  profit. 

By  far  the  largest  item  of  exoenditure  in  connecticn  with  in- 
dustrial assurance  is  occasioned  by  the  cost  of  collecting  the 
premiums  weekly  from  millions  of  polif  yholders  a'  their  o"n 
doors,  and  nn  improved  organisation  of  thesf  co'l'-ctions  was 
experi'^entaHv  undertaken  in  1013,  in  order  that  waste  of  time 
and  effort  might  be  elimina'ed.  At  that  time  cur  premium 
income  of  /'i2.6'9,ci;^  was  grouped  in  i7,6it  agencies,  and,  in 
snite  of  previous  efforts  towards  con"entration,  nanv  of  0"r 
reoresentfltives  were  miking  calls  in  the  sa-ne  streets  .ind 
houses  with  all  the  useless  sacrifice  of  labour  which  such  dupli- 
cation of  work  must  entail.  It  was  then  de-ided  to  adopt  t*^e 
block  system  of  collection,  so  that,  as  time  and  rpnortunity 
permitted,  all  our  collections  in  a  given  area  should  cnme  into 
the  hinds  of  one  representative  of  the  comoanv.  When  the 
experimental  staee  of  the  work  was  completed  in  the  vear  1014, 
the  movement  was  ext-^n'^ed  thrni'ehout  the  roun'rv.  and  at 
the  close  of  1Q17  nearly  on'>-half  of  our  total  premium  col'ec- 
tion  had  be°n  organised  under  tl^e  new  svstem.  This  copcn- 
tration  of  effort  has  rendnr^d  it  unnefessiry  for  us  to  increve 
the  number  of  our  staff  in  proportion  to  the  erowth  of  our 
business,  and  has  ena*^led  us  to  abstain  from  replacing  a  la^'se 
number  of  men  who  have  left  our  service  on  ac"o"nt  of  age 
or  to  engine  !n  other  attrpctive  emplovment  wh''h  thev  are 
specially  aualifi'^d  to  perform.  S'-ch  new  aP"oiutmen»s  as  we 
have  made  are  for  the  most  nart  of  a  temporary  chsiacter.  for 
the  nuroose  of  "  csTvin?  on  "  until  our  m°n  on  af-tive  s<>rvice 
mnke  their  triu'"nh"'nt  re'vm  on  t'^e  conclusion  of  the  war, 
the  co'^nanv  bavin?  undortaken  to  pive  re-e'Tin'''vm<»nt  n^t 
lr=s  adv.-intqtrenus  than  that  which  th^v  relinoui-h-d  »o  all 
who  are  'h'e  to  resume  work  for  us  after  peace  shall  be  de- 
clared.    (Hear,  hear.) 

The  Collection  of  the  Premium  Income. 
Our  premium  income,  which,  as  I  have  s.iid,  now  reaches 
;^i4,892,57i,  is  grouped  in  13,107  agencies,  showing  that,  as 
compared  with  1913,  the  annual  income  requiring  collection 
has  increased  by  /"a, 273, 016,  while  there  has  been  a  reduction 
of  4,504  in  the  number  of  agents  employed.  The  actual  result 
is  that  the  collections  are  made  at  a  rate  which  is  appreciably 
reduced,  while  the  individual  salaries  cf  the  agents  have  been 
substantially  increased.  The  economy  has  not,  therefore,  been 
won  at  the  expense  of  our  men,  and  I  may  repeat  what  I  told 
you  at  a  previous  meeting — that  those  agents  who  prefer  to  go 
on  working  under  their  old  agreements  have  been  left  undis- 
turbed. The  value  of  the  system  does  not  end  with  the  agency 
staff;  it  has  already  simplified  the  work  of  supervision  and 
reduced  the  dfficulties  attending  invest-gaticns  and  reports. 
The  full  adv.antage  of  a  gradual  reform  cannot  be  gained 
during  the  period  of  transition,  but  the  strain  on  our  super- 
visory and  clerical  staffs  has  already  been  relieved  in  a  marked 
degree.  I  have  no  hesitation  in  saying  that  when  we  are  re- 
lieved of  the  extremely  heavy  burdens  which  have  been  imposed 
upon  us  by  the  war  there  will  be  a  reduction  in  our  expense 
ratio  which  will  enable  us  to  give  greater  benefits  to  the  policy- 
holders, as  well  as  increasing  remuneration  to  the  staff,  without 
disregard  of  the  legitimate  interests  of  the  shareholders.  (Hear, 
hear.) 
War  Effects  on  the  Company's  Profit-F,arning  Capacity. 
The  war  has  played  s.ad  havoc  with  our  profit-earning  capa- 
city. In  1913,  the  last  pre-war  year,  the  profit  distributed 
represented  about  17  per  cent,  of  our  premium  income;  in 
round  figures,  laj  per  cent,  went  to  the  pnliry'nolders  and  out- 
door staff  of  the  company,  and  the  remainins;  4^  per  cent,  went 
to  the  shareho'ders.  The  war  temporarily  brought  about  the 
practical  withdrawal. of  bonuses,  and  is  responsible  for  the  very 
large  reduction  which  has  taken  place  in  the  shareholders'  divi- 
dend.    In  1916  this  dividend  had  fallen  from  4}  per  cent,  to 


less  than  3  per  cent,  of  the  premium  income,  and  for  1917,  the 
year  with  which  we  are  dealing  to-day,  your  dividend  is  little 
more  than  2^  per  cent,  of  that  total.  Much  as  we  regret  that 
the  profit-sharing  scheme  is  for  the  time  being  inoperative, 
much  as  we  should  like  to  do  more  to  help  ouf  staff  in  this 
period  of  high  cost  of  living,  the  directors  do  not  think  they 
would  be  justified  in  asking  you  to  make  further  sacrifices  while 
the  company  is  bearing  voluntarily  heavy  burdens  outside  of 
the  contracts  to  which  it  is  a  party — burdens  which  to  a  large 
extent  are  being  borne  in  the  interests  of  the  State — burdens 
exactly  comparable  with  others  which  the  State  has  recognised 
as  her  own,  and  which  are  being  borne  partly  or  entirely  by 
contributions  from  the  public  funds. 

Earnings  of  the  Agency  Staff. 

I  am  happy  to  say  that  the  earnings  of  our  agency  staff  have 
not  only  not  suffered  reduction  during  recent  years,  but  have, 
on  the  other  hand,  shown  a  considerable  increase.  In  the  year 
1912  the  average  earnings  were  £2  per  week,  and  :n  the  year 
1917  they  had  risen  to  £2  18s.  7d.  weekly.  We  have  invited 
any  whose  earnings  are  insuflScient  to  meet  the  needs  of  their 
dependents  to  apply  for  assistance,  and  in  some  hundreds  of 
cases  we  have  made,  and  are  making,  compassionate  allow- 
ances to  tide  them  over  the  difficulties  of  the  situation.  You 
will  realise,  as  we  have  done,  that,  in  spite  of  the  increase  in 
the  average  earnings  to  which  I  have  referred,  the  remunera- 
tion is,  in  present  circumstances,  less  adequate  than  in  normal 
times,  and  you  will  share  our  regret  that  we  do  not  feel  able  to 
respond  to  the  request  which  has  been  put  forward  on  behalf 
of  the  agency  staff  for  the  payment  of  a  war  bonus. 

The  agents  find  it  difficult  to  understand  that  an  institution 
with  100  millions  of  invested  funds  is  yet  limited  in  its  capacity 
to  meet  any  demand  which  may  be  made  upon  it,  and  especially 
a  demand  which,  from  their  point  of  view,  is  not  unrcaso"^'ble. 
The  Government,  which  is  deeply,  and  perhaps  unavoidably, 
committed  to  the  system  of  war  bonuses,  and  is  able  to  meet 
such  increased  expenditure  from  a  purse  which,  though  not  in- 
exhaustible, is  much  longer  than  ours,  is  anxious  that  an  in- 
fluential body  of  men  visiting  the  homes  of  the  great  masses  of 
the  people  should  not  develop  a  condition  of  mind  which  might 
spread  disappointment  or  discontent  throughout  the  country. 
The  Minister  for  Labour,  to  whom  the  question  was  referred, 
invited  the  company  to  submit  it  to  arbitration,  but,  on  further 
consideration,  recognised  that  there  were  valid  objections  to 
that  method  of  dealing  with  the  difficuty.  As  an  alternative 
to  arbitration,  he  proposed  that  an  expert  committee — to  consist 
of  a  judge,  a  prominent  actuary,  and  p  pro'^inrnt  accmmfnt 
— should  inouire  and  reoort  as  to  the  ability  of  industrial  assur- 
ance companies  and  societies,  having  regard  to  their  commit- 
ments, to  meet  this  further  charge,  and  your  board  had  no 
hesitation  in  agreeing  to  submit  its  case  to  this  committee, 
whose  report  will  doubtless  be  made  in  due  course. 

The  Company's  Special  Burdens  Through   the  W^ar. 

I  have  more  than  once  made  clear  to  you  the  nature  of  the 
special  burdens  which  the  company  has  been  carrying  through- 
out the  war.  Of  two  of  these  the  dep-eciaton  in  investments 
and  the  allowances  to  members  of  the  staff  on  active  service,  all 
I  need  say  is  that  the  first  is  recognised  as  unavoidable  in  a 
time  of  naticnal  crisis,  and,  regarding  the  second,  I  am  sure  I 
can  say  on  your  behalf  that  there  is  no  expenditure  which  needs 
less  justification.  (Hear,  hear.)  I  have  previously  explained 
to  you  the  inequitable  burden  imposed  upon  us  by  the  Courts 
(Emergency  Powers)  Act,  and  it  is  right  that  you  should 
clearly  understand  tKat  but  for  the  burden  which  that  .\ct 
imposes  upon  us  and  for  the  burden  which  the  company 
has  vcluntirily  undertaken  in  p.ayment  of  w  r  claims,  there 
would  have  been  nothing  to  prevent  the  distribution  of  a  yearly 
bonus  to  the  shareholders,  the  policyhclders,  and  the  outdoor 
staff  as  large  .•^s,  or  even  larger  than,  the  b-^nus  given  in  1914. 
Peace  Contracts  of  Life  Assurance. 

I  spoke  of  the  voluntiry  undertaking  by  the  company,  for, 
as  regards  the  great  majority  of  our  contracts,  the  risk  of  the 
assured  engaging  in  hcst-lities  as  a  combatant  was  specificary 
excluded.  During  August,  1Q14,  the  Government  were  con- 
cerned as  to  the  prob.-b'e  attitude  of  the  industrial  companies 
and  societies  in  respect  of  their  peace  contracts  of  life  assurance 
with  those  of  the  wige-earning  classes  on  active  service,  and 
the  then  President  of  the  Local  Government  Board  was  in- 
formed, in  response  to  an  inquiry,  that  the  companies  and 
societies  were  desirous  of  meeting  such  claims  withcut  deduc- 
tion while  their  resources  permitted  them  to  do  so.  It  was 
st.-ted  that  the  war  claims  in  the  South  Afric-'n  campaign,  in 
which  only  one  arm  of  the  Service  was  largely  engaged,  cost 
the  Prudential  over  ,^170,000,  and  it  was  pointed  out  that  cur 
loss  in  connection  with  the  present  war  might  easily  approach 
or  perhaps  exceed  ^^2,000,000.  It  was  observed  that  this  would 
inflict  a  serious  loss  on  millions  of  other  policyholders,  and 
would  be  equivalent  to  enforcing  a  compu'sory  levy  on  the 
majority  of  our  clients  for  the  benefit  of  the  relatives  of  those 
engaged  in  active  service  at  a  risk  for  which  no  premium  had 
been  paid.  It  was  c'early  stated  that  "ny  calamity  on  a  lar.ge 
scale  might  render  necessary  an  immediate  reconsideration  of 
the  decision  arrived  at,  and  it  was  intimated  that  we  should 
not  feel  justified  in  meeting  this  strain  without  free  title  to 
reconsideration. 

Wab  Claims  and  the  Company. 

The  view  was  expressed  that  the  Government  mi^ht  not  un- 
reasonably be  asked  to  consider  the  ■advantage  o*  authorising 
the  fu'l  pavmpnt  rf  war  claims  on  the  understanding  that  the 
Treasury  would  make  good  to  the  offices  the  ascertained  extra 
strain  arising  through  the  war.  Our  war  claims  un  to  date 
are  no  less  than  yC3,4';6,220.  The  amount  of  /a.ooo.ooo  con- 
templated in  August,  1914,  has  therefore  been  largely  exceeded, 


ifM 


Zbc  Jnvestora'  IReview. 


March  9,   1918. 


and  while  we  were  anxious  to  afford  any  and  every  help  which 
patriotism  could  suggest,  especially  during  the  period  oi  volun- 
tary enlistment,  it  was  felt  that  the  extren.e  limit  of  our  capacity 
had  been  indicated  in  August,  1914,  and  that  the  burden  must 
fall  on  the  broader  shouldcjs  of  the  State  when,  or  e\en  b^ft-re, 
this  limit  had  been  readied.  The  right  to  undertake,  volun- 
tarily, additional  risks,  which  could  only  be  met  by  the  sacrifice 
of  other  interests,  could  be  justilied  cuiy  11  us  exercise  v-ese 
kept  within  reasonable  bounds,  and  it  is  certain  that  there 
could  be  no  right  to  jeopardise  the  stability  ol  the  company  in 
any  circumstances  whatever.  Our  war  claims  have  been  met 
chiefly  by  the  temporary  suspension  of  our  profit-sharing 
scheme.  » 

The  Dividend  and  the  Proht  from  the  Industrial  Branch  : 
The  Shareholders'  Sacrifice. 
You  will  remember  thit  in  the  ye  >r  1907  the  shareholders 
voluntarily  decided  that  after  the  payment  of  a  fixed  dividend 
on  the  shares,  all  profit  from  the  Industrial  Branch,  in  excess 
of  the  sum  so  required,  should  in  future  be  divided  into  six 
parts,  four  of  which  parts  should  go  to  the  Industrial  Branch 
policyholders,  and  one  e.ich  to  the  shareholders  and  to  the 
outdoor  staff  of  the  company.  This  action  or  renunciation  re- 
presented a  sacrifice  on  the  part  of  the  sharehclders  which  I 
believe  to  be  withcut  precedent,  and  it  gives  the  lie  to  those 
who  would  urge  that  commercal  undertakings  are  necessarily 
devoid  of  heart  or  soul.  (Cheers  )  Tn  my  judgment,  it  pre- 
sented commerce  in  its  highest  form,  inasmuch  as  it  freely 
recognised  and  safeguarded  the  wider  interests  of  our  staff 
and  our  policyholders  by  granting  them  a  share  in  the 
prosperity  of  the  Prudential  not  contemplated  in  their  contracts 
with   thP   romp'nv. 

The  Prudential  has  once  more  justified  its  reputation  by 
riising  the  business  of  industrial  assurance  to  a  higher  plane. 
During  the  years  1908-1915,  under  this  scheme,  no  le.ss  a  sum 
than  £2  825,000  was  allocated  for  distribution  amongst  the 
polirvhoHers  and  the  ontdror  stnff  of  the  rrmipanv.  and  this 
distribut'on  would  undoubtedlv  have  been  continued  but  for 
the  burdens  borne  bv  the  company  in  respect  of  the  war. 
Those  who  in  normal  cirrnmstances  would  have  continued  to 
benefit  under  the  scheme  have  therefore  contributed  the  fol- 
lovin?  sums  in  the  proportions  named  : — Industrial  Branch 
policyholders,  ;f  1.400,000;  shirohclders,  /■65o.roo ;  rutdoor 
staff,  jf^co.coo.  The  sum  confrib'-ted  bv  the  shareholders  is 
/"■^ocooo  in  pxre=s  of  that  cnntr'bnted  bv  the  staff,  he'-ause 
thrt  sha'^eholders  h.-^ve  not  cnlv  suffe-'ed  in  common  vith  the 
others,  bv  'he  .suspension  of  the  bonus,  but  have,  in  addit'on, 
rp'inouish^d  in  resnet  of  the  three  vea-s.  including  1917, 
;fioo.ooo  in  e-ch   war  of  their  fxed   dividend. 

No  HELP  ASKEU  BY  THE  CO.MPANV  FRO.M  THE  TREASURY. 
Your  beard  wish  it  to  be  clearly  understood  that  any  help 
which  the  State  may  be  willing  to  give  will  go  for  the  benefit 
of  the  policyholders  on  active  service,  no  help  will  be  asked 
for  the  company  from  the  Treasury ;  they  have  exercised  the 
powers  they  possess  with  the  desire  to  afford  the  utmost 
ass'stance  to  the  nation  in  the  crisis  in  which  she  is  so  deeply 
involved,  and  to  help  those  who  have  made  the  supreme  sacri- 
fice in  her  hour  of  need,  and  who,  under  pre-war  conditions, 
made  such  provision  as  thev  felt  they  could  afford  for  the 
maintenance  of  their  dependents.  The  directors  are  proud 
that  the  company  has  been  able  to  make  this  encrmous  con- 
tribution for  the  purposes  described,  and  they  believe  that 
those  who  have  pa-ticipafed  in  the  monetary  sacrifice  for  the 
most  part  share  that  pride.  (Hear,  hear.)  No  attempt  to 
disguise  the  sacrifi'-e  which  this  action  has  involved  could, 
however,  be  ju.stified,  and  I  have  endeavoured  to  pl.ace  the 
situation  before  you  so  that  vou  mav  understand  ex.actlv  what 
has  been  done,  and  whv  it  has  been  done.  The  question 
is  continually  before  the  h^ard.  and  the  oos'tion  mav  well 
dcm.ind  not  only  reconsideration  but  rectification  in  the  im- 
mediate future. 

I  feel  sure  you  will  agree  that  this  renort  is  a  wonderful 
TP'ord  of  the  aTormli^hmi^n's  rf  our  staff,  who  have  proved 
that  fhore  's  no  diflfirnltv  which  thev  are  nn-'ble  to  surnmnnt. 
(Cheers.)  There  is  also  ample  evidence  of  the  extr.aordinary 
«t-b'1'tv  of  the  crmrnnv  in  the  wnv  it  has  hf^rne  enormous 
burdens  during  nearlv  four  veirs  of  this  world-var.  and  I 
P'n  ahiA  to  assure  voti  tha*  th*  ranarity  of  the  rrmnany  to 
disrhirge  its  manifold  reoronti^bilities  and  liabilities  has 
Suffered    no   diminution.     fCheors.) 

The  St4Ff  and  the  Company. 
In  ronchision,  may  I  sav  that  the  scheme  i"augiiratpd  bv 
the  company  to  enable  the  staff  to  take  up  further  amounts  of 
War  Lo.an  bv  instalments  spread  over  a  number  of  years  was 
Rreatlv  appreciated,  1.540  applications  havins!  been  received 
from  outdoor  staff  and  667  from  indoor  staff?  The  amount 
advanced  bv  the  company  under  that  sheme  was  ;f 210.011;, 
in  respfct  of  /'a-jCaTO  War  Loan  purchased,  and.  as  an  en- 
comagement  to  the  staff,  the  cmpanv  charged  ^H  per  cent, 
onlv  for  the  advance.  TTp  to  the  present  over  215  loans,  re- 
presenting   /63.069,    have    been    repaid. 

We  are  stiU  continuing  to  ensure  that  no  member  of  our 
staff  serving  with  the  Colours  shall  be  prejudicially  affected, 
either  in  position  or  pav,  th-ough  his  enforced  absence  from 
our  employ,  and  the  thousands  of  letters  we  receive  from  cur 
soldiers,  sailors,  and  airmen  testify  to  their  appreciation  of 
the  generosity  of  the  company.  At  the  present  time  nearly 
S,ooo  of  our  staff  are  anually  serving,  and  I  regret  to  say 
470  have  made  the  great  s.icrifice.  The  amount  paid  last  year 
in  respect  of  allowance  to  those  serving  is  no  less  than  ^^472, 400. 
Onr   Red    Cross   detachments,    although   reduced    in   numbers. 


still  carry   on   their   useful   work,    and   remain   an   important 
unit   of   the   London   Ambulance   Column. 

\Mth  tenacity  and  enthusiasm  that  no  difficulties  can  daunt, 
our  depleted  but  devoted  staff  of  men  and  women  still  main- 
tain the  efficiency  of  the  company,  of  which  we  are  so  proud. 
I  have  no  hesitation  in  saying  that  "come  what  may,"  they 
will  Ix!  found  equal  to  the  task,  and  will  continue  to  meet 
all  emergencies  until  victory  finally  crowns  the  banners  of  our 
beloved  country.     (Cheers.) 

I  now  beg  to  move  "  That  the  report  of  the  directors  and 
accounts  certified  by  the  auditors  be  received  and  adopted,  the 
statutory  report  of  the  auditors  having  been  previously  read 
to  the  meeting,"  and  I  will  ask  our  deputy-chairman,  Mr 
Home,    to   second    the   resolution. 

Investments  in  Termin.able  Securities. 
The  DeputyChairman  (Mr.  W.  Edgar  Home,  M.P.)  :  Ladies 
and  Gentlciuon,— I  think  ycu  will  agree  with  me  that  the  chair- 
man's speech  has  practically  covered  every  point  connected 
with  the  history  of  the  company  during  the  past  year.  There 
is  one  small  point  which  he  left  out,  because,  perhaps,  he 
thought  I  might  like  to  mention  it,  if  I  wish  to  follow  in  my 
father's  footsteps.  He  mentioned  that  last  year  there  were 
53  weeks  in  the  year,  but  he  did  not  mention  that  last  year  we 
also  hid  14  months.  (laughter.)  I  will  leave  other  people  to 
explain  how  it  was  done.  There  is  one  point  in  the  .accounts 
which  I  should  like  to  b'ing  to  your  notice,  and  that  is  the  iri- 
creasing  percentage  of  the  funds  which  are  invested  in  securi- 
ties terminable  at  fixed  dates  and  for  fixed  amounts.  It  means 
that,  as  long  as  our  debtors  are  solvent,  we  shall  always  be 
able  to  get  the  moncv  hack  at  fixed  times,  and  that  our  aclu.ary 
will  not  have  any  difficulty  in  making  his  plans,  because,  of 
course,  his  figures  are  also  for  fixed  dates  and  for  fixed 
amounts,  and  we  shall  not  have  those  very  heavy  sums  for 
depreciation  which  have  unset  many  of  our  plans  in  the  past. 
In  this  connection,  the  railway  sto-ks  that  we  hold  have  to  be 
considered,  and  I  think  it  will  be  a  question  in  the  future 
as  to  how  far  sto-Vs  whVh  are  liahlc  to  depreri-t-on  of  an 
unknown  amount  are  suitable  investments  for  insurance  rom- 
p-'nies.  The  present  moment,  however,  is  not  the  one  to  go 
into  that.  The  future  of  railways  is  also  unknown,  hut  I 
ventu-e  to  think  th.-'t  th^t  is  a  quest'on  whi'-h  we  sh.-'U  net  be 
aVe  to  disreea-d  in  the  future.  With  those  v  nrds.  1  am 
pleaded  to  s»cond  the  adopticn  of  the  report.  (Cheers.) 
The   resolution   was  carried  unanimously. 

Statement  by  Sir  William  Plender; 
Sir  William  Pit-nder,  at  the  request  of  the  chairman,  then 
addressed  the  meeting.  He  said  :  Mr.  Chairman,  Ladies 
and  Gentlemen,— I  have  so  often  referred  at  previous  general 
meetings  to  the  precautions  and  safsguards  which  are  exer- 
cised  in  controlling  the  securities  of  the  company,  and  the 
businesslike  order  in  which  they  are  preserved  and  placed 
before  my  firm  lor  verification,  th.it  it  is  unnecessary  to  empha- 
sise this  tact  again.  The  salient  feature  in  the  balance-sheet, 
next  to  the  larf>e  total  of  its  figures,  is  that  the  company  holds 
British  Government  securities  of  over  ;r'27,ooo,ooo.  The  com- 
pany has  thus  more  than  complied  with  the  wish  expressed 
by  the  Chancellor  of  tlie  Exchequer  to  life  assurance  companies 
to  invest  in  the  new  issues  20  per  cent,  of  the  total  assets  to 
assist  the  nation  in  financing  the  war.  I  may,  perhaps,  add, 
what  is  not  apparent  on  the  face  of  the  accounts,  tliat  the  com- 
pany is  contributing  to  the  steadiness  of  the  quotation  for  war 
stock  by  the  practice  of  taking  over  at  issue  price — namely,  95 
per  cent. — the  holdings  of  those  subscribers  who  find  it  ncces- 
Rary  to  realise,  provided  they  insure  their  lives  with  your  com- 
pany, thus  shielding  them  from  poss'ble  loss  in  having 
patriotically  taken  up  more  slock  than  they  are  able  to  hold 
permanently.     (Cheers.) 

The  Chairman,  in  moving  the  election  of  Mr.  Alfred  C. 
Thompson  as  a  director  of  the  company,  said  that  after  the 
last  annual  meeting  Mr.  Thompson  was  appointed  by  the 
board,  and  he  had  alre.ady  proved  himself  to  be  a  very  great 
acquisition.  During  the  past  year  the  di-o'tors  haH  h^en 
called  upon  to  decide  many  important  and  difficult  questioBS, 
and  it  had  been  most  helpful  to  have  had  the  general  manager, 
who  was  so  intimately  in  touch  with  the  outdoor  staff  of  the 
company  and  with  the  insurance  world  generally,  one  of  them- 
selves, and,  therefore,  in  closer  association  with  every  member 
of  the  board.  (Hear,  hear.)  On  two  occasions  recently  Mr. 
Thompson  had  been  elected  to  a  high  position  in  the  insuraiice 
world.  The  shareholders  would  re.alisc  more  how  his  ability 
was  recognised  outside  the  clice  when  he  (the  chairman)  told 
them  that  on  each  occasion  the  electors  were,  the  chief  officials 
of  the  principal  insurance  offices  in  the  City  of  London. 
(Cheers.)  . 

Sir  John  H.  Luscombe  seconded  the  motion,  which  was 
carried  with  cheers,  and  Mr.  Thompson  briefly  acknowledged 
his  election. 

On   the  motion    of  the  Deputy-Chairman,    seconded  by   Mr. 
James   Moon,    Sir   William   Lancaster,   Mr.   W.    T.   Pugh,  and 
•  Mr.  D.   W.  Stable  were  re-elected  directors  of  the  company. 
Mr.   Pugh  returned  thanks  on   behalf  of  his  colleagues  and 
himself 

Mr.  A.  W.  WiHey  proposed  the  re-election  of  the  auditors, 
Mr.  Philip  Secretan  and  Mr.  W.  H.  NichoUs.  and.  in  doing 
so.  congr.atu'ated  the  chairman  on  the  remarkable  lucidity 
with  whi'-h  he  had  put  the  position  of  the  company  before  the 
sharehflders,  and  added  that  he  had  certainly  shewn  that  the 
Prudential  was  not  only  a  useful,  but  a  national  institution. 
(Hear,  hear.)  Seeing  that  there  were  two  members  of  Parlia- 
ment on  the  board,  he  thought  it  would  not  be  out  of  niace  to 
suggest  that  the  time  had  arrived  when  the  courts  (Emergency 


March  9,   191 8. 


Zhc  Jnvestors'  IReview. 


261 


Powers)  Act  should,  at  any  rate  in  regard  to  industrial  insur- 
ance, be  suspended.  (Cheers.)  In  these  days  of  marvellously 
inflated  wages  in  every  sphere  of  life,  it  seemed  to  him  uniair 
to  industrial  companies  such  as  the  Prudential  that  an  Act 
should  remain  in  force  which  was  a  deliberate  encouragement 
to  those  who  wanted  to  shirk  their  real  responsibility.  (Hear, 
hear.) 

Mr.  C.  Willis  seconded  the  motion,  which  was  unanimously 
adopted. 

Vote  of  Thanks  to  the  Chairman  and  Dieectoes. 
Sir  William  H.  Davison,  K.B.E.,  moved  a  hearty  vote  of 
thanks  to  the  chairman  and  directors  for  the  services  they  had 
rendered  during  the  past  year.  The  s-tatement  which  the 
chairman  had  made  on  the  present  occasion,  he  said,  showed 
not  only  what  remarkable  assets  the  company  possessed,  but 
also  what  a  great  asset  the  Prudential  itself  was  to  the  nation. 
(Cheers.)  He  referred  in  eulogistic  terms  to  the  patriotism  of 
the  staff  and  to  the  financial  support  which  the  Prudential  had 
constantly  given  to  national  finance.  Throughout  the  present 
national  crisis  the  directors  had  shown  that  they  recognised 
that  a  company  in  which  millions  of  the  population  were  in- 
terested must  be  run  on  patriotic  lines.     (Hear,  hear.) 

Mr.  I.  H.  A.  Marchand,  in  seconding  the  motion,  referred 
to  the  active  interest  which  the  company's  agents  were  taking 
in  the  War  Savings  Campaign,  and  said  there  could  be  no 
doubt  that  the  staff,  from  the  highest  to  the  lowest  member  of 
it,  was  inspired  by  the  example  of  the  board.  (Hear,  hear.) 
He  remarked  that  he  had  listened  for  a  number  of  years  to  the 
chairman's  annual  orations.  They  had  always  been  extraordin- 
arily interesting,  but  might  he  say  that  his  pre-war  orations 
were  nothing  like  so  interesting  and  inspiring  as  those  to 
which  the  shareholders  had  listened  since  the  outbreak  of  the 
war.  They  were  enthralled  by  the  magnitude  of  the  figures  in 
the  past.  In  those  days  of  peace  they  were  pleased  to  come 
and  find  the  dividend  and  the  bonus  increasing,  but  since  the 
war  started  it  seemed  that  the  Prudential  had  got  on  a  very 
much  higher  plane.  They  did  not  derive  the  same  benefit 
financially  from  the  company  that  they  did  previously,  but  he, 
personally,  was  jMOuder  than  ever  of  being  a  shareholder  in  . 
it.  If  any  corporation  in  the  country  was  "doing  its  bit," 
it  was  par  excellence  the  Prudential  Assurance  Company,  and 
it  was  the  chairman  and  directors  who  set  the  tone  and  the 
pace.  (Hear,  hear.)  Long  might  Sir  Thomas  Dewey  and  his 
colleagues  live  to  direct  the  company's  affairs!  (Cheers.) 
The  motion  was  carried  unanimously. 

SiE  Philip  Gekgory  acknowledged  the  vote  on  behalf  of  the 
board,  who,  ht  said,  highly  appreciated  the  kind  way  in  which 
it  had  been  moved  and  seconded  and  received  by  the  share- 
holders. It  would  probably  have  been  noticed  that  one  member 
of  the  board  was  absent — Dr.  Boswell — on  account  of  illness, 
and  he  was  sure  they  would  allow  him  to  send  a  message  of 
sympathy  to  Dr.  lioswell  and  an  expression  of  their  hope 
for  his  recovery,  which  they  were  now  beginning  to  feel 
thoroughly  assured  about.  (Hear,  hear.)  Dr.  Boswell's  ser- 
vices were  of  the  utmost  valre  to  them,  not  only  on  account  of 
his  great  medical  experience,  but  also  because  he  was  the 
personification  of  common  sense,  and  on  all  occasions  they 
rocognised  that  in  him  they  had  a  wise  and  useful  colleague. 
(Cheers.) 

Sis  William  Lancaster  on  the  Work  of  the  Staff. 
Sir  William  Lancaster  said  that  the  chairman  had  done 
him  the  honour  of  placing  in  his  hands  the  next  resolution.  As 
an  old  member  of  the  working  staff,  he  need  not  say  what 
great  pleasure  it  gave  him  to  move  that  the  best  thanks  of 
the  meeting  be  given  to  the  management  and  the  indoor  and 
outdoor  staff  of  the  company  for  the  manner  in  which  thev 
had  performed  their  respective  duties.  The  subject  matter  of 
the  resolution  had  been  very  ably  touched  upon  by  previous 
speakers,  but  before  he  went  further  he  desired  to  take  the 
opportunity  of  congratulating  his  successor  in  the  office  of 
deputy-chairman,  which  he  him.self  last  year  felt  impelled 
to  relinquish  on  account  of  increasing  deafness.  Mr.  Homo 
was  a  most  able  man,  who  had  held  several  very  prominent 
public  posit'ons  ;  he  was  an  old  Prudential  man,  and  came  of 
an  old  Prudential  stock  ;  and  he  could  be  relied  u.oon  to  do 
justice  to  the  position  of  deputy-chairman.  (Hear,  hear.)  The 
resohitinn  referred  to  a  very  great  .staff,  comprising  agents,  dis- 
trict office  clerks,  assistant  superintendents,  inspectors,  mes- 
sengers, domestic  servants,  clerks,  sub-managers,  assistant  man- 
agers, actuaries,  secretaries,  culminating  in  the  last  and 
greatest  of  them  all,  the  general  manager.  (Hear,  hear.)  The 
staff  numbered  rather  more  than  17,000  persons,  and  he  would 
therefore  not  take  up  time  by  going  into  their  individual  merits 
— (la-'ghter)— but  would  deal  with  them  collectively.  He  as.Ved 
the  shareholders  very  sincerelv  to  pass  this  vote  of  thanks, 
because  during  the  past  year  the  work  had  been  of  a  mo.st  ex- 
ceptional character,  and  it  had  been  carried  through  in  a 
nxanncr  which  commanded  the  adm'raticn  of  the  board  and 
must  be  very  gratifying  indeed  to  all  who  were  connected  with 
the  company.  (Hear,  hear.)  He  would  not  like  to  forget 
the  large  number  of  temporary  clerks  who  were  filling  the 
places  of  those  who  had  been  called  ud  for  m.ilitaTy  service. 
The  Actuary,  Secretary,  and  General  Manager. 
liut  while  they  were  thanking  the  entire  staff,  one  natur- 
ally whittled  them  down  to  those  men  in  whom  the  manage- 
ment of  the  company  was  rea'ly  Cfntred— t'-e  a<~f'arv,  Mr. 
Purn,  the  secretary,  Sir  George  May,  and  the  general  mm. 
ager,  Mr.  Thompson.  (Cheers.)  Mr.  Burn  was  one  of  those 
men  who  were  not  onlv  finished  actuaries.  Sometimes  men  of 
the  highest  mathematical  ability  were  not  far-seeing  in  com- 
mercial   knowledge,    and    were    not    always    able    to    see    the 


defects   and   dangers  of   an   investment   which  might   possibly 
fulfil   all   the   conditions   of    a    mathematical     formula.        Mr. 
Hum  was  a  man   in  whom  was  centred  the   greatest   possible 
mathematical   ability,    and    who    also   presented   a   combination  . 
of  general  commercial  instinct  and  knowledge,  and  who  could 
grasp    the   effect  of   any    question    with   the    greatest   possible 
ease   and    with   great   benefit   to   the   company.     (Hear,    hear.) 
He  was  also  possessed  of  a  very  taking  and  courteous  manner. 
He  could  not  only  deal  with  abstruse  mathematical  questions, 
But  could  address  local  War   Savings  Association  meetings  as 
a  member  of  that  most  useful   Committee  since  its  inception ; 
he   could,    as   he    did    a    few    days    earlier,    address    a   large 
meeting   from   the   top   of  a   Tank ;    and   he   could   convince   a 
superintendent  of  the  easiest  way  in   which  to  deal  with  the 
difficuUres  of  a  War  Bond  policy.     (Hear,  hear,  and  laughter.) 
In  Mr.  Burn  they  had  a  man  who  was  indeed  a  very  valuable 
servant  of  the  comp.nny.     (Hear,  hear.)     In  Sir  George  May  the 
company  was  very   fortunate  in  having  a  secretary  who,  lent 
to  the  Government,  was  able  to  carry  successfully  through  the 
gieat  work  of  dealing  with  American  securities,  which  formed 
a  highly  important  part  of  the  financial  affairs  of  the  country. 
Sir  George  May  dealt  with  that  business  so  successfully  that 
the  Secretary  of  State  for  War  himself  personally  asked   the 
chairman  to  allow  the  Government  the  services  of  Sir  George 
May  for  the  purpose  of  putting  in  order  the  great  work  of  the 
military   canteens  of   the   country,   and   he    was   now   engaged 
upon  that  work.     (Cheers.)     It  might  be  added  that  Sir  George 
was  unfortunately  stricken  down  by  illness  for  three  months, 
but    the   three    men    he   took    with    him    from    the    Prudential 
carried  on   the  work   most  successfully,   and  the  chief   of  them, 
he  was  glad  to  say,  had  been  suitably  rewarded  by  the  Govern- 
ment.    (Hear,  hear.)     There  had  been  four  secretaries  of  this 
company.     In  the  forties  he  believed  there  was  another  secre- 
tary,  but  no  one  ever  heard  of  him.     (Laughter.)     Only  four 
were   recognised,    or   were   known   to  any  of   the   dire'tors   now 
living,  and   three  of  them  had  been   honoured  by  their   Sove- 
reicrns.     (Hear,  hear.)     Coming  to  the  last  and  most  important 
member   of   the   management,    he    had    to    refer    to    the    general 
manager,    Mr.    Thompson,    who   was   a   very   remarkable   man. 
(Hear,    hear.)     He    was   one   of   those    genial    souls   who  com- 
manded   the    respect,    and    even    the    affection,    of    those    over 
whom  they  were  placed  and  of  their  clientele  all  through   the 
country.     Mr.   Thompson   was   not  afraid   to  speak   his   mind, 
but  remembered   Sam  Slick's  description  of  the  proper  method 
of    treating    wrmen    and    hor.ses  :    "Encourage    the    timid;    be 
gentle    with    the    fractious ;     but    leather    the    lazy    ones    like 
blazes."     (Laughter.)     Mr  Thompson  not  only  bore  the  highest 
reputation    on    their    staff,    but    his    great    ability    had    been 
recognised   also,   as  the  chairman  had   said,   by  the  managers 
of  the  other  insurance  companies  of  London  and  of  England, 
vho   had    elected    him    vice-chairman   of    the    ereat   association 
wh'ch    h.-^d    Lately    been    promoted    bv    the    different   companies 
for  the   purpose  of  considering  all   matters  affecting   insurance 
companies.     It   was   a   very   great   honour    indeed,    not  only    to 
Mr.    Thompson,    but   to   the    Prudential,    that   he   should   have 
been   selected    for  s"ch   a    nromineit   position.     (Hear,    hear.) 
The  Staff  and   Military   Service. 
He  (Sir  W.   Lancaster)  desired  to  add  one  or  two  words  to 
what  had  already  been  said   by  other  speakers  wilh   regard  to 
members    of    the    company's    staff    who    had    undertaken    war 
service.     From  the  chief  office  1,126  had  gone  into  his  Majesty's 
Forces ;   more   than  half   of  them    had  become   officers,   and    38 
decorations  had  been   gained.     Unhappily,  92  had  been  killed. 
Of    the  outdoor    staff   7,129   had  been   serving;    357   had   been 
killed    in    action,    and    26    had    gained   decorations.        In    the 
Voluntary  Aid   (Red  Cross)   Detachments  they  had  100  officers 
and  men,  and  among  the  ladies  130  ofiicers  and  sisters.     They 
were  present  at  the  head  oflice  all  day  and  all  night,  and  were 
liable  to  be  called  up  at  any  hour  of  the  night. ^  They  had  met 
3,165    trains,   involving   the  detraining  of    264,692  British    and 
2,878  Germans.     In  this  connect-on  he  might  make  the  sorrow- 
ful statement  that  the  board  had   suffered  very   materially  in- 
deed  in  this  great   war.     They  had  lost  seven   sons,  they  had 
three  son-,  in  hospitals  at  present,  and  one  was  a  prisoner  of 
war,  while   six   sons  and  grandsons    were   still   fighting.        He 
prnved   God   thfey  might  come  home  safely.     (Heir,   hear.) 

Mr.  F.  Schooling  said  he  had  plrasure  in  seconding  the 
resolution,  and  he  fully  endorsed  all  that  Sir  William  Lancaster 
had  said.  Knowing,  as  he  did,  the  difficulties  and  trials  of  work- 
ing  this  enormous  "company  in  this  time  of  war,  r.e  was  lost 
in  admiration  and  wonder  at  the  administrtive  -ibilitv  and 
business  raparity  wi*h  which  the  indoor  and  the  outdoor  staff 
had  lc<)'.-eT  after  affairs.  iHear,  hear.)  He  was  extremely 
glad  that  those  servin?  at  the  front  vve-e  inc'nd.'d  in  the  vote, 
and  he  trusted  that  it  might  also  be  consi'^ered  as  one  of 
sympithy  for  the  relatives  of  those  wiio  bad  lost  their  dear 
ones— who  had  made  the  great  sacrifice  for  King  and  Country, 
Justice  and  Honour. 

The  motion  "'as  iinanimo"slv  agreed  to. 

Mr.  Burn's  Reply  for  the  Staff. 
Mr.  J.  Burn,  respontling  on  behalf  of  the  whole  staff,  said 
that  the  vote  would  be  hiehly  annreriated  bv  them  all._  As 
regarded  the  oi't'^oor  st.-'ff,  the  chairman  had  alrpady  explained 
how  very  val'-able  their  assistance  had  been,  how  loyally  they 
had  worked  dur^n?  the  past  year,  and  he  was  R'Te  that,  in 
ten-^prin"  th/'ir  thanks  to  the  s'^a'-eholHerj  for  'he  vote,  they 
wo"ld  wi.sh  him  also  to  assure  the-n  of  their  dft-rin'nation  to 
rontiniie  to  merit  the  ronfidenpe  reoo'-ed  in  them.  The  com- 
pany had  been  particularly  indebted  to  the  b.dv  staff  during 
the  past  year,  and  he  wished  to  say  h-jw  greatly  he  had  appre- 


26a- 


^be  Jnvestors'  IRevtew. 


March  9,  1918. 


ciated  their  devotion,  especially  during  periods  of  air  raids. 
He  thought  ia  thik  connection  it  was  as  well  that  some  in- 
stances of  their  devotion  should  be  more  generally  known,  and 
he  would  give  one  which  stood  out  particularly  in  his  memory. 
They  received  at  the  office  a  preliminary  warning  of  an  air 
raid.  At  the  time  they  were  very  busy— he  believed  prin- 
cipally owing  to  the  large  amount  of  extra  work  being  done  in 
connection  with  War  Savings  accounts-  and  when  the  warning 
was  received  the  ladies  were  at  on.'e  told  the)  might  return 
home.  Instead  of  doing  so,  one  after  the  other  said,  "  Oh, 
we  are  much  too  busy  to" bother  about  air  raids  "  ;  or  they  said, 
"  We  are  not  suffering  anything  like  the  risks  that  our  brothers 
are  suffering  night  and  day.  Let  us  get  on  with  the  job." 
(Cheers.)     He  thought  that  was  splendid.     (Hear,  hear.) 

The  Chairman  announced  that  that  con:luded  the  business. 

"Mx.  Deputy  Millar  Wilkinson  proposed  a  cordial  vote  of 
thanks  to  the  chairman,  remarking  that  they  were  all  thoroughly 
proud  of  him,  and  regarded  him  as  the  "  right  man  in  the 
right  place."     (Hear,  hear.) 

Mr.  Cyprian  Webb  seconded  the  motion,  and  it  was  carried 
with  acclamation. 

The  Chairman  having  briefly  acknowledged  the  compliment, 
the  proceedings  terminated. 


UNITED  SERDANG  RUBBER. 

THE    PROPOSED  RESTRICTION   OF    OUTPUT. 

NECESSITY   FOR    CLOSER    CO-OPERATION    AMONG 

PRODUCERS. 

The  tenth  annual  ordinary  general  meeting  of  the  United 
Serdang  (Sumatra)  Rubber  Flamtaitions,  Ltd.,  was  held  on 
Wednesday  in  the  Council  Room  of  the  Rubber  Growers' 
Association,  38,  Kastcheap,  E.C.,  Mr.  George  Croll  (the  chair- 
roan)  presiding. 

Mr.  J.  Mitchell  Thorn,  representing  the  secretaries  (Messrs. 
Harrisons  and  Crosfield,  Ltd.),  having  read  the  notice  con- 
vening the  meeting  and  the  report  of  the  auditors, 

The  Chairman  said  :  Gentlemen, — We  regret  the  delay  in 
sending  out  the  accounts  this  year,  but  it  was  quite  unavoid- 
able, owing  to  circumstances  over  which  we  had  no  control. 
Our  issued  and  paid-up  capital  remains  at  ;^25o,ooo.  the 
amount  standing  at  the  credit  of  premiums  on  shares  account 
is  ;^i7o,i4i  7s.  5d.,  and  at  reserve  account  ;^7S,ooo,  both 
amounts  being  the  same  as  at  the  end  of  August,  1916.  If  you 
agree  to  our  recommendation  to  transfer  ;^io,ooo  from  last 
year's  profits  to  reserve  account,  the  total  sum  at  the  credit  of 
premiums  and  reserve  accounts  will  be  ;^255,i4i  7s  5d,  which 
is  equal  to  £26  3s.  4d.  per  planted  acre.  After  allov-ing  for 
depreciation,  the  nett  capital  expenditure  for  the  year 
amounted  to  ;^22,53i  3s.  7d.  After  deducting  the 
amount  at  credit  of  premiums  and  reserve  accounts,  including 
the  jf  10,000  from  the  profits  of  the  year  under  review,  the  nett 
book  cost  of  the  9,750^  acres  planted  at  the  end  of  the  financial 
year  was  £2^  14s.  4d.  per  acre,  which  makes  no  allowance 
for  the  area  of  approximately  4,390  acres  of  good  plantable 
reserve  land.  At  the  end  of  August  last  we  had  a  deficit  on 
capital  account  of  jCio,y6g,  and  we  have  to  meet  during  the 
current  year  an  estimated  capital  expenditure  of  ;^2g,oi8.  To 
meet  this  we  have  the  ^1^10,000  which  we  propose  placing  to 
reserve  account  out  of  last  year's  profits,  plus  the  free  carry 
forward  of  j^32,ooo  and  the  depreciation,  which  we  shall  re- 
cover during  the  year,  so  th.at  the  capital  position  is  quite 
satisfactory.  With  regard  to  further  capital  expenditure  re- 
quired beyond  the  current  year  to  complete  our  present  pro- 
gramme—to which  I  will  refer  later— I  may  s.ay  that  it  is  esti- 
mated that  we  shall  require  ;fi6,ooo  for  1918-19  and  for  the 
succeeding  five  years  an  average  of  ;,r6,ooo  per  annum,  so  that 
in  so  far  as  capital  requirements  are  concerned,  it  will  not  be 
necessary  to  dr.aw  to  any  appreciable  extent  on  the  profits 
earned  by  the  company. 

CROP  HARVESTED. 

The  crop  of  rubber  harvested  for  the  financial  year 
was  3,269,210  lbs.,  against  an  estimate  of  3,265,000  lbs. 
Th:s  represents  an  increase  of  240,686  lbs.  on  the  previous 
year  s  total.  The  crop  was  harvested  from  an  average  bearing 
area  of  8,887}  acres,  ox  about  91  per  cent,  of  the  total  planted 
area,  against  an  average  area  in  bearing  for  the  previous  year 
ot  8,106  acres.  The  yield  was  at  the  rate  of  367.8  lbs.  per 
acre,  or  4.15  lbs.  per  tree.  The  yield  per  acre  was  slightly 
lower  and  per  tree  slightly  higher,  than  in  the  previous  year, 
the  trees  actua.l.Iy  m  tapping  at  the  end  of  August  last  showed 
=,  .t^''^^!^  -^5.5"  as  compared  with  the  number  in  tapping 
of  ,rL!^T"'!'8  °'  l*'«  y^""'-  ^f"^--  allowing  for  the  number 
nLntihl  ^''^  we  brought  into  tapping  for  the  first  time 
during   the   year,    the    net  decrease    is   accounted    for    bv   the 

^"aU  '"efer  VaTer  ^"^  ^',f  ■^''   ''^•""^  °"»  ^^  to  wh'lch  I 
shall  refer  later      The  "  aJJ-in  »  cost  of  the  crop  was  is  3.96d 

&f.';'l-I.Al.'^;^'"^'."-.°-«»A  P«   lb.   for  the  previous  year 


?or'brh7eher'f"re?;M    ""^  ^'^^^   ^'  '^-    ^^'^    ""^'"'y  accounted 
LL|al's'.«^Tt  'waf  l:,rdu^^^^;rcr.-   -f.  ^The-^c/^r.^ 


against  2s.  5-33^.  per  lb.  for'  ?he  previous  K^rTthrn^de: 
crease  in  profit  as  against  the  previous  year  being  i  Zd  r«  lb 
At  the  end  of  the  financial  yL  approximateirgn  Ic;es  we™ 
in  course  of  preparation  for  planting,  and  of  this  area  f>o 
acres  h«l  actually  been    plant^    at  the  end  of    August,    and 


we  have  since  been  advised  that  this  has  been  increased  to  891 
acres.  As  I  mentioned  in  my  speech  last  year,  o^ii  programme 
is  to  carry  out  extensions  to  a  total  of  1,500  acres,  as  oppor- 
tunity offers,  and  when  this  programme  is  completed  we  shall 
have  a  planted  acreage  of  11,140  acres,  costing,  in  round 
figures,  ;^32  per  acre. 

OOMDITIOX  OF  THE  PBOPEBTT. 

The  estates  were  kept  in  a  clean  weeded  condition 
throughout  the  year  at  the  very  low  cost  of  S.7od. 
per  acre  per  month,  as  against  6.45d.  for  the  previous  year. 
This  very  low  figure  is  in  itself  an  indication  of  the  excellent 
condition  in  which  the  property  has  always  been  maintained 
The  labour  force,  which  was  sufficient  for  ail  ordinary  re- 
quirements, numbered,  at  the  end  of  the  financial  year,  4,859, 
and  provision  is  being  made  during  the  current  year  for  the 
usual  replacement  of  expired  contracts,  and  for  supplementing 
the  force  to  meet  the  needs  of  the  new  clearings.  The  health, 
both  of  the  European  and  native  labour,  has  been  very  good 
during  the  year,  and  although  the  death  rate  among  the 
latter  was  slij^htly  higher  than  in  the  previous  year,  it 
amounted  to  only  7.2  per  thousand — a  figure  which  reflects 
great  credit  on  the  medical  attention  given  at  the  Central  Hos- 
pital at  Petoemboekam  belonging  to  the  Serdang  Doctor  Fonds, 
of  which  each  of  the  estates  of  the  company  is  a  member.  I 
referred  last  year  to  our  decision  to  lay  down  a  light 
railway  on  the  Bergerpang  and  Lantassan  divisions, 
and  expressed  the  hope  that  this  work  would  be  com- 
pleted durmg  the  last  financial  year.  Owing,  however,  to 
war  conditions,  which  have  delayed  the  delivery  of  a  portion 
of  the  material  necessary,  it  has  not  been  possible  to  complete 
this  work.  We  hope,  however,  that  the  balance  of  the  material 
will  be  deli-vered  shortly  and  enable  this  very  desirable  im- 
provement in  the  transport  facilities  to  be  completed. 

THINNING  OUT. 

The  work  of  thinning  out  in  the  older  areas  was  continued, 
and  some  75,000  trees  in  the  bearing  area,  and  approximately 
15,000  trees  in  the  immature  area  were  eliminated.  This  work 
was  carried  out  in  a  very  thorough  and  systematic  manner, 
each  block  being  considered  separately  on  its  own  merits,  and 
each  individual  tree  selected.  Where  this  work  has  been  done, 
it  is  reported  10  have  had  a  very  beneficial  effect  on  the 
bark  renewal  and  general  heaith  of  the  remaining  trees.  The 
usual  attention  to  the  necessary  upkeep  of  ro<ads,  bridges,  and 
drains  was  carried  out  at  a  reasonable  cost  during  the  year. 
No  new  disease  of  any  kind  was  reported,  and  we  have  no 
cause  for  any  anxiety  under  this  heading.  The  company's 
estates  all  over  are  reforted  to  be  in  first-class  condition,  and 
can  certainly  be  reckoned  among  the  very  best  groaps  of 
estates  on  the  east  coast  of  Sumatra.  In  regard  to  the  current 
year,  I  have  already  mentioned  that  our  capital  expenditure  is 
estimated  at  ;;f 29,018;  this  is  divided  approximately  as  to 
;^io,554  for  buildings  and  machinery,  ^2,400  for  the  upkeep  of 
immature  areas,  ;^i4,22S  for  new  clearings,  and  ;f  1,836  for  the 
proportion  of  labour  engagement  expanses  chargeable  to 
capital.  Our  managers  have  estimated  for- a  crop  of  3,395,000 
lbs.  of  rubber  to  be  harvested  from  an  average  bearing  area 
of  9,267,  which  is  equal  to  about  95  per  cent,  of  the  present 
planted  area. 

RESTRICTION  OF  OUTPUT. 

This  estimated  crop  is,  however,  subject  to  the  limita- 
tion entailed  by  our  having  assented  to  the  scheme 
put  forward  by  the  Rubber  Growers'  Association  for  the  re- 
striction of  the  output  for  the  calendar  year  1918.  This  scheme 
provides  for  the  crop  to  be  collected  in  the  calendar  year 
1918  being  limited  to  80  per  cent,  of  that  collected  in  the 
calenja.r  year  1917,  or  in  any  previous  year  showing  a  greater 
yield.  By  agreeing  so  to  restrict  oar  output,  the  crop  which 
we  shall  be  entitled  to  harvest  for  the  current  financial  year 
will  be  approximately  2,750,000  lbs.  Out  of  the  current  year's 
crop  we  have  sold  under  forward  contract  810,880  lbs.  at  an 
average  of  2s.  7.64d.  per  lb.,  London  equivalent.  This  scheme 
of  restriction  arose  out  of  the  necessity  for  restricting  imports 
in  order  to  release  as  much  tonnage  as  possible  for  the  most 
urgent  requirements  of  the  Allies.  The  scheme  has  received 
the  necessary  support  to  make  it  binding  on  the  assenting  com- 
panies, but  as  this  only  provided  for  70  per  cent,  of  the  area 
represented  by  the  Rubber  Growers'  Association,  and  the  associ- 
ation represents  about  50  per  cent,  of  the  whole  planted  area  in 
the  Middle  East,  it  does  not  affect  more  than  one-third  of  the 
total  planted  area.  1  should  like  to  add  a  few  words  generallv 
upon  the  subject  of  the  restriction  of  output  of  rubber,  the 
necessity  for  closer  co-operation  among  producers  for  the  pro- 
motion of  their  interests,  and  the  advisability  of  increasing 
the  membership  of  the  representative  body  of  the  industry,  the 
Rubber  Growers'  Association.  Rubber  is  ahnost  the 
only  commodity  in  great  demand  for  war  purposes  the 
average  price  of  which  has  been  lowered  during  the 
war,  and  recent  advices  show  that  stocks  have  accumulated 
or  are  accumulating  in  the  East,  in  Br.azil  and  in  other  parts  of 
the  world.  The  price  of  the  commodity,  f .0  b.  Singapore,  has 
fallen  to  about  is.  4j4d.  to  is.  ^d.  per  lb.  The  Shipping  Con- 
troller has  recently  withdrawn  all  shipping  facilities  for 
rubber  from  the  East  to  the  United  Kingdom  until  May  next, 
and  the  storage  accommodation  for  rubber  in  the  East  is  very 
limited.  Contemporaneously  with  the  abnormal  situation 
created  by  the  war  there  has  taken  place  a  large  increase  in 
the  production,  owing  to  the  considerable  areas  planted  in 
1910,  ion,  and  iqi2,  which  have  recently  come,  or  are  now 
coming,  into  bearing. 


March  9,   1918. 


ttbe  Jnvestovs'  IReview* 


363 


K   DIFflCULI    SITUATION. 

These  facts  establish  that  the  rut>bs;r  industry  is  faced  with 
a  dimcult  situation,  and  justiiy  the  pioposais  for  restriction 
of  output  and  for  combined  action  to  meet  the  situation  if  pio- 
duceis  desire  to  avoid  m  the  near  tuture  what  tor  many  of 
them  may  be  a  serious  situation.  If  a  manutacturer  were  pro- 
ducing in  excess  of  the  aemand,  he  would  promptly  restrict  the 
supply.  The  same  course  of  conduct  would  recommend  itself 
to  anyone  who  had  the  monopoly  of  the  production  of  rubber, 
and  It  is  therefore  reasonable  that  producers  generally  should 
combine  for  sucii  a  purpose.  The  obvious  signs  of  ovtr-supply 
are  to  be  seen  in  the  increase  of  stocks  and  the  fall  in  price. 
With  restriction  the  price  may  be  maintained  above  cost,  and 
in  any  case  will  be  higher  than  if  no  restriction  were  in  force, 
but  without  restriction  it  is  probable  that  the  price  will  fall 
below  the  average  cost  of  production  The  scheme  adopted 
provides  for  the  Association  being  able  to  suspend  the  restric- 
tion at  any  time  should  shipping  tacilities  and  the  dem.ind 
justify  it.  An  incidental  advantage  of  restriction  will  be  that 
many  of  the  trees  will  improve  by  resting  or  by  reduced  tap- 
ping, and  the  estates  can  be  made  more  valuable  by  the  tem- 
porary diversion  of  labour  and  energy  to  improvements  which 
will  reduce  the  future  cost  of  maintenance  and  production. 
CRITICISUS    FOUNDED   ON    MISAPPBEHEN:iION. 

The  proposals  for  restrictions  and  that  Governments 
in  the  East  should  be  asked  to  assist  in  enforcing 
it  on  all  producers  have  been  criticised  upon  two 
grounds — firstly,  that  a  shortage  of  rubber  for  the  war  pur- 
poses of  the  Allies  may  result,  and,  secondly,  that  interference 
by  the  Iccal  Governments  in  the  industry  is  undesirable.  Both 
these  crit'cisms  are,  in  my  opinion,  founded  en  mis.vpprehen- 
sions.  None  of  the  leaders  of  the  industry  wish  to  inflate 
artificially  the  price  of  rubber,  but  what  they  desire  is  to 
prevent  its  falling  to  an  unremunerative  level,  which  might 
prove  serious  to  the  industry  as  a  whole.  That  there  will  be 
no  shortage  for  war  purposes  may  be  assumed  from  the  f.ict 
that  the  price  is  steadily  falling,  the  stocks  are  accumulat- 
ing, and  in  so  far  as  this  country  is  concerned  facilities  for 
shipment  have  been  withdrawn  for  two  months.  Further,  if 
any  shortage  were  threatened,  the  price  would  rise  at  once, 
and  the  Rubber  Growers"  Association  have  the  power  then 
immediately  to  lift  the  restriction,  and  no  doubt  would  do 
so.  The  objection  raised  to  the  industry  asking  for  Govern- 
ment assistance  in  enforcing  restriction  probably  is  based 
upon  the  wides'^read  cbjection — with  which  I  am  in  complete 
sympathy — to  Government  or  official  interference  in  the  pr.icti- 
cal  management  of  any  industry.  This,  however,  is  not  in- 
volved in  the  proposal,  which  is  that  a  general  order  shall  be 
made  affecting  all  producers,  and  which  need  not  bring  any 
official  interference  with  the  actual  administration  of  the 
estates.  The  rubber  industry  has  assumed  such  proportions 
and  has  invested  in  it  such  large  amounts  of  British  capital 
as  to  make  it  a  great  national  as=et,  and  one  which  has 
proved  to  be  valuable  in  the  war.  Further,  the  present  posi- 
tion is  partly  acounted  for  by  Government  regulation  of  the 
rubber  manufacturing  industry,  and  of  shipping,  which,  of 
course  we  realise  are  necess.iry  at  the  present  time.  I  think, 
therefore,  the  restriction  of  output  pnd  Government  assistance 
in  enforcing  it  are  justified,  especially  as  in  our  opinion  it  is 
in  the  national  interest  that  the  industry  should  not  go 
through  a  disastrous  period  of  unremunerative  prices. 
keei^Ai,  ro  prodjci!.rs. 

Unfortunately  there  are  many  British  companies  which  are 
not  members  of  the  Rubber  Growers'  Association,  and  which 
have  not  given  the  scheme  their  support,  and  I  would  appeal  to 
them  and  to  all  shareholders  in  su~h  companies  not  to  adopt 
the  selfish  policy  of  endeavouring  to  climb  cut  over  the  backs 
of  those  who  have  voluntarily  taken  upon  themselves  the 
obligation  of  helping  the  industry  througa  the  present  diffi- 
cult times.  On  wider  grounds  also  than  the  e,xigencies  of  the 
present  abnormal  position  I  would  strongly  recommend  for  tjie 
consideration  of  these  companies  the  advisability  of  all  British 
producers  joining  and  loyally  supporting  the  Rubbers  Growers' 
Association.  No  doubt  you  are  all  aware  of  the  very  extensive 
and  far-reaching  steps  Germany  is  now,  and  has  for  some 
time  been,  taking  for  the  voluntary  and  compulsory  syndica- 
tion of  many  of  her  industries,  some  of  which  she  has  com- 
pelled by  law  to  combine  to  restrict  their  outputs  or  alter  the 
classes  of  their  products.  Further,  there  has  been  issued  re- 
cently in  America  a  long  and  remarkable  report  by  the  Federal 
Trade  Commission  upon  the  need  for  co-operation  in  the 
American  export  trade.  In  our  own  country  the  tendency 
towards  combinations  or  co-operation  in  various  industries  is 
becoming  more  emphasised,  and  in  years  to  come  I  fear  that 
our  industry  will  suffer  seriously  if  it  does  not  also  effectively 
combine  for  its  protection  and  for  collective  action  in  its  in- 
terests. If  each  prodircing  company  insists  upon  acting 
in  isolation,  the  industry  as  a  whole  will  be  weakened  and 
will  suffer  in  times  of  difficulty.  If,  however,  all  will  com- 
bine for  collective  action  for  the  good  of  the  whole  industry 
all  must  benefit  by  it.  I,  therefore,  appeal  not  only  to  com- 
panies cutside  the  Rubber  Growers'  Association  to  agree  to 
restriction,  but  I  also  appeal  to  them  to  join  the  Rubber 
Groweis'  Association,  and  to  all  dire-tors  and  shareholders 
of  rubber  companies  to  take  what  action  they  can  to  extend 
its  membership,'  influence,  and  power. 

FUTURE    OF   THE    INDUSTRY. 

I  have  dealt  at  length  upon  this  matter.  hecau?e  the  near 
future  of  the  industry  is  obscure,  and,  in  my  opinion, 
full     of    possibilities     of     more    or     less     serious     difficulties. 


I  want,  however,  in  closing  to  emphasise  my  belief 
that  tne  abnormal  times  and  the  lieavy  increase  in 
bearing  areas  are  responsible  for  the  aifficulties  with 
wnicii  we  are  faced,  and  tnat  if  we  combine  and  our  collec- 
tive action  is  gu.ded  by  intehigen-e  and  reasonable  foresight, 
the  industry  has  an  enormous  tuture  before  it.  No  doubt  the 
demand  will  again  overtake  production  and  restriction  of  out- 
put will  sooner  or  later  become  unnecessary.  I  am  convinced, 
however,  that  with  normal  times  the  demand,  based  upon 
the  known  uses  of  rubber  alone,  will  be  increased  enormously 
in  all  civilised  countries,  and  I  am  confident  this  increase 
will  be  accelerated  by  the  dis  overy  of  further  uses  for  our 
product  and  that  the  present  planted  area  ultimately  will  be 
found  insufficient  to  meet  the  world's  requirements.  The  nett 
profit  for  the  year's  working  amounted  to  ^^216, 765  ics.  3d.,  to 
\  iui.a  nas  to  be  added  the  nett  carry  forward  from 
ir,'?,^.  which  amounted  to  ;^2o,352  19s.  icxl.  This 
give? us  a  total  of  ^237, 118  153.  la.,  from  which  falls  to 
be  deducted  the  interim  dividend  of  20  per  cent  paid  in 
June,  1917,  absorbing  ;^50,ooo,  and  leaving  a  balance  of 
^187,118  15s.  id.  to  be  dealt  with  to-day.  The  proposal  which 
we  put  before  you  is  that  a  final  dividend  of  20  per  cent,  be 
paid,  making  40  per  cent,  for  the  year,  that  the  sum  of 
;,fio.ooo  be  placed  to  reserve  account,  and  that  the  balance 
of  jCi2y,iiS  15s.  id.  be  carried  forward  to  1917-18.  This  carry 
forwatd  is  subject  to  the  amount  of  excess  profits  duty  payable 
for  the  year  ended  August  31,  1917,  which  is  estimated  at 
;^g5,ooo.  Our  estimated  liability  under  the  excess  profits 
duty  up  to  the  end  of  the  year  under  review  has  now  amounted 
to  1C226  6Sg  I2S.,  which,  in  round  figures,  is  90  per  cent,  on 
our  total  cayitil.  During  the  year  we  granted  donations  to  the 
St.  Dimstan's  Hostel  for  Blinded  Sailors  and  Soldiers,  King 
George's  Fund  for  Sailors,  and  the  Y.M.C.A.  ot  100  guineas, 
;f  100,  and  100  guineas  respectively.  These  grants  were  made  in 
response  to  appeals  supported  by  the  rubber  industry  generally, 
and  I  have  no  dojibt  our  having  done  so  wilf  meet  with  your 
approval.  I  should  like,  however,  to  suggest  that  some  share- 
holder move  that  ^oo  guineas  out  of  last  year's  profits  be  pl.iced 
at  the  disposal  of  the  directors  for  the  puipose  of  making  con- 
tribiitions  to  war  funds,  such  sum  to  include  the  grants  to 
which  I  have  already  referred.  I  now  beg  (o  move:  "That 
the  directors'  report  and  statement  of  accounts  in  respect  of 
the  finanria!  ypTr  ended  August  31,  1917,  be  and  the  same  are 
hereby  adopted." 

Mr.  C.  E.  Morrisoif  seconded  the  resolution. 

After  the  Chairman  had  answered  guest'ons  by  shareholders, 
the  resolution  was  put,  and  carried  unanimously. 
THE    DIVIDEND. 

The  Chairman  then  moved:  "That  a  final  dividend  of  20 
per  cent.,  making  40  per  cent,  for  the  year,  be  paid  in  respect 
of  the  financial  year  1916-17;  that  the  sum  of  ^^10,000  be  placed 
to  reserve  account,  and  that  the  balance  of  ;^'i27,ii8  15s.  id. 
be  carried  forward  to  1917-18,  subject  to  excess  profits  duty 
for  the  year  to  August  31,  1917,  estimated  at  j^'95,000." 

Mr.  H.  W.  Morrison  seconded  the  resolution,  and  it  was 
unanimously  agreed  to. 

The  Chairman  announced  that  the  dividend  warrants  would 
bs  sent  out  with  the  report  of  the  proceedings  of  the  meeting. 

On  the  motion  of  the  Chairman,  seconded  by  Mr.  Charles 
Milne,  Mr.  C.  E.  Morrison  was  re-elected  a  director,  and,  on 
the  motion  of  Mr.  A.  Bryce  Chalmers,  seconded  by  Mr.  George 
VVragge,  Messrs.  McAuliffe,  Davis  and  Hope  were  reappointed 
auditors. 

Dr.  H.  A.  Powell  moved  that  a  sum  of  500  guineas  be  voted 
out  of  last  year's  profits  to  be  devoted  to  war  funds,  the  amount 
to  include  the  donations  already  made  by  the  directors ;  that 
is,  St.  Dunstan's  Hostel  for  Blinded  Sailors  and  Soldiers  100 
guineas,  King  George's  Fund  for  Sailors  .^100,  and  Y.M.C.A. 
100  guineas. 

The  motion  was  carried  unanimously. 

Mr.  G.  L.  Moore,  in  proposing  a  vote  of  thanks  to  the  chair- 
man, the  directors,  agents,  and  staff  in  the  East  for  their 
services  during  the  year,  said  that  at  the  present  time  it 
required  very  great  attention  on  the  part  of  the  directors  and 
staff  to  carry  on  the  business  of  the  company.  The  chairman 
had  given  the  shareholders  a  very  lucid  statement  of  the  facts 
and  his  own  views,  which  were  of  the  greatest  value  to  them. 
He  was  sorry  the  chairman  had  not  been  able  to  give  them  a 
forecast  of  the  future,  as  it  looked  rather  gloomy. 

The  vote  was  unanimously  accorded. 

The  Chairman,  in  thanking  the  meeting,  said  he  had  not 
intended  to  be  in  the  least  pessimistic.  He  thought  the  present 
position  was  such  that  he  should  say  what  he  really  thought 
as  to  the  position  of  the  rubber  industry.  If  all  producers 
would  combine  with  a  view  to  tiding  over  what  undoubtedly 
was  a  difficult  period,  he  had  every  possible  confidence  in  the 
future.  But  if  a  considerable  number  of  companies  did  not 
see  their  way  to  fall  in  with  the  proposals  of  the  Rubber 
Growers'  Association,  they  could  not  possibly  get  the  result 
which  was  required  to  meet  the  present  circumstances.  The 
trees  were  a  very  good  warehouse,  and  there  was  a  good  deal 
of  work  which  could  be  done  which  would  benefit  the  estates  in 
the  future,  and  enable  them  to  produce  more  cheaply  after- 
wards. 

The  proceedings  then  terminated. 


For    the    first    eight    months    of    the    Australian    fiscal    year 
1017-18,     the     Customs     revenue     h.is     been     /9,i6o^ooo,     or 
/t.i:;79.ooo   'ess    than    that  of    the    previous   year. 
Office  revenue  is  up  ;f  184,000  to  ;f3, 752,000. 


The   Post 


264 


tTbe  Jnv^estore'  IReview, 


March  9,  191 8. 


INnUN  UAK-WAYS. 

OROS!i   TRAPrIC   FOR   WEEK 

ORoaft  TRAFFIC  TO  DATE 

N*MB. 

Week 
ending 

Amount 

In.  or  dee. 

on  lail 

vewr. 

Amouni 

In.  or  dec. 

on  last 

year. 

Asum  BenxAl       *. 
BarsI  ..        .. 
BenKalaN.-W.     .. 
BenKul  Nagpiir 
Bonibav,  Uaroda  .. 
Turma 

D.!ihi  Uinballa       .. 
East  In.tian,. 
Ct.In.lian  Penln.  .. 
L'lOknow-BMreilly,. 
M:i.lras      and        S 

Mabraica  .. 
Nlium'aG.).  (Broad 
,.        ..     (Meir.) 
Robllkund  and 

Kumuon  .. 

So'.*''  Indun 

Jan     12 

..     19 

.1     12 

1.     19 

F.-b.  23 

IJec.     I 

Pcb.  23 

..       23 

.  "     '3 
Jan.    12 

..      >9 

Dec.     8 

8 

J  n.    12 
.       '9 

R.. 

1.45  '57 

97.800 

4.'  7.870 

10.13000 

15.50.0  0 

4.34.871 

7H.eo) 

2't.22.000 

24.73.  ™ 
48.676 

g,^ono1 
I  25301 
i,o8,o.-8 

29. 178 
S  66.196 

R-. 

-  32,218 

-  2  ,300 

-  8,594 

-  «8.0.») 
+     63,.yio 

-  36,6'! 
*■  3,80 ) 
+  1,84,  «0 
+  1,62,6.0 

-  2,438 

-  79.S95 

-  2,92'< 
+         t,82S 

-       9.'-3 

-  4.0  8 

f 

: 
: 
1 

1 

t 

t 
1 

I 

: 

R«. 

I9.''J.7" 
6,74.80. 
•>',.  7  5'1 

4,3  •■JJ"'" 

2  98.1  ,000 
35.  8.»2, 
18.5  '.2^ 

4.86,22,00c. 

4,66,29,2.1 
/-.09.3i9 

i,Wi»7.fi43 
Il.93.'8l 
7,22,83 

6,21,474 
1. 02. <l  1,921 

R.. 

-  73. '56 

-  18,200 

—  6,10,614 
+  34,IO,o8» 

—  n.7'.'00 

-  i.o3,f.50 

+      2.2l).605 

•  15,81  000 
+  33.38.n9 

t        90.5'5 

+  10.02.177 
f       47  9'4 

—  2.. 088 

»  »54.436 

■    TS.12,   36 

MONTHLY    STATEMENTS. 


t    \i>C*t   I. 


I    OolULiBC   I. 


TRAMWAY  AND  OMNIBUS.— HOME. 


r 

t 

£ 

t 

Dublin  United 

Feb.  22 

7,266 

+ 

1,178 

54.501 

+       9.73" 

Hist  inc..  and  DIst.. 
U\»  el  Thanet 

Vl.nr.    4 

904 



75 

f.377 

+             49t 

■eb.  21 

'7' 

— 

52 

3  5l'7 

—       1  612 

Lan<;lshire  United. 

..     27 

2.655 

+ 

867 

20747 

t        6,4St 

Provincial    .. 

Jan.  2 

2.479 

+ 

729 

3'<.2  4 

<■        5.5'9 

VorKA  (Wai   R^ne 

vlar.    I 

'.496 

* 

634 

21.M.1 

+        5.0S1 

*  From  Oct.  i-  f  From  |an.  i. 

TRAMWAY  AND  OMNIBUS.— FOttblON    AND   COLONUL. 


Alabama  Power    . 

AuKio-AiKeiitine     . 
Auckland  Blectrlo. 
Br4Ei)i;in  Traction 
Brisbane  Elec.  Inv. 
Briiisb  (  oluinbia  . . 
B.A.  Lacroze 
Buimah  Electric  . 
Ca*ri)itB 
CarthaK^n^  and 

Herrerias  .. 
Cor  oba  Light 

P.  AT.  .. 
Hoiiskong  .. 
La  Plata 

Lima 

MaHras  Klectrio    . 
Manila  EUctiic... 
Meiico 
Rangoon 

Singapore  Electric 
Toronto 

United  of  Monte  V 
VeraCrut   ,. 
Winnipeg     ., 


Dec. 

i 

Mar. 

4 

)ct. 

j6 

Dec. 

Oct. 

Dec. 

s 

|an. 

6 

Mar. 

a 

Feb. 

b 

Dec. 

Ian 

•1 

>. 

b 

Feb. 

tZc 

Auk. 

8 

Nov. 

i 

Keb. 

« 

Dec. 

29 

N.v. 

s 

Feb. 

Nov. 

! 

r 
120,303 
56938 
22,308 

M7,3i2.oO' 

33.180 

•  "7.333 

38,902 

Rs.,5429 

Rs.75,751 

4i03< 

■34-^ 

12,246 

4.7" 

22  5ig 

Rs  33  553 

65467 

»2I5,25>. 

5662 

•  13,201 

I42  .556 

34.573 

46.3  o 

-  $86,88= 


t 

Ms. 

+ 

22,79- 

12 

t 

4,802 

+ 

8n, 

a 

+ 

VI  757,000 

12 

t 

820 

•0 

¥ 

»30  9  7 

5 

. 

760 

7 

+ 

Rs  1,6:7 

1- 

R8.6,266 

* 

+ 

8oi< 

♦ 

+ 

i,o8i 

9 

t- 

*y 

+ 

396 

12 

+ 

5,211 

1 

f 

Rs. 5,012 

♦ 

+ 

4,667 

8 

- 

1 10S,(ir.| 

* 

+ 

1,057 

• 

+ 

•  ■,173 

* 

— 

♦  8,751 

11 

f 

2,269 

4 

— 

10 

~ 

»>4744 

11 

r 

1,300  6  4 

480,082 
92,118 

MS4S85roo 
32'<420 

♦  599.79' 
269377 
■34.  37 

Rs5,69,6i3 

8,042 

122,121 

112,246 

48.961 

22.J19 

R!..l(9  1)4 

54?i492 

»3.I93,io6 

I  .023 

l6«i,8os 

♦5.' 32.  71 

I3S'774 

567,0  HJ 

•  748,976 


c 

I-      35i.o«7 

<■       29.77 1 

7.832 

•.  M73I5  KIO 
—  2,    O) 

f     t6o,ogi 

T  340 

>  Rs.  144 
4^Rs.2l,288 

+  837 

-  1,051 
+  asS 

-  1873 

f  5.2" 
<.R8.  5257 

1-  70,625 

-  $197,227 
■I-  1,7-5 
+  $11,901 
+  $239,133 

+  Iu,20I 


$327,782 


*28  days.       »  From  Jan.  l        !  Neil         a  From  July  i.      c  Two  weeks. 

FOREIfiN   RtrLWAVS. 


Alcoyand  Gandia . . 
Antotagasta  (Chili) 
Arauco 

Argentine  N.B. 
Bilbao  R.  and  Canta 

Bulivar 

Bratll 

Brazil  Gt.  Southern 

B.  Ayres  &  Pacific 
Do.  Central 
Do.  Gt.  Soutb'n 
Do.       Western 

Central  Argentine. . 

C.Ur'g'ayof  Mts  V 
Do.  East'n  Ei 
Do.  N..rth'n  Ei, 
Do.  West'n  Ex. 

Cordoba  Central  .  - 

Co^la  Rica   . 

Cuban  Central 

Dorada  Extension. . 

Egyptian  Delta      .. 

Entre  Rios  .. 

French  Sante  F<  . . 

Gt.  Soutii.  ot  :>paii 

Gt.  West,  of  Brazil. 

Havana  Central     . 

Inter.  01  C.  Amer... 

La  Guaira  and  Car 

Leopoldina  .. 

Midland  Uruguay , 

Mogyana 

N.w.  of  Uruguay  .. 

Nitrate 

Paraieuay  Central  . 

PaulUta 

Peruvian  Corpn    . . 

Salvador 

State  of  Bahia  S.W. 

■S.  fauiu  ittraz.iiani 

Sorocabaoa.. 

Taital.. 

United  ot  Havana.. 

W'st'ool  Havana.. 

Zafra  in.!  H.m.v 


Feb, 

Deo. 
Mar. 
Jan. 

Nov. 
Oct. 
Mar. 
Jan. 
Mar. 


Ian. 
Feb. 
Jan. 


Ps. 


20 


*  Moatba.  t  From 


Mar. 

Aug. 

Feb. 

Mar. 

Feb.    21 

Jan.    c' 

Feb. 

■4ar. 
Jan. 
Nov. 
J  n. 
feb.    15 
Mar.     3 
Nov.     • 
Feb.     • 

..  23 
Jan.  ' 
iVlar.  3 
Dec.  • 
Jin.  • 
.M  ,r.  1 
,.  2 
Jan.      • 


23 


t 

11,00 , 

32, "5 

14  500 
9,100 
S.io-i 

12,000 
M4. 746,0.0 
-Vli^.5^,200 

74,000 

29,421 
134.000 

72.000 
160  030 

19  115 
5.869 
3.429 
2.4    2 

40,100 
2.257 

37.796 

8  30> 

10,289 

I9.3.0 

132  000 

32402 

19  100 

11,079 

23.424 

5.500 

31.556 

10,638 

.M2,2  12,000 

#28,000 

34.097 

3,12c 

.Vl3,so6,ooo 
S    925,410 

•  j,II2 

Mtl4  00 
.8518 
M2,io/.uoo 

3'. 552 
92,742 
12  890 
0^923 


I's. 


2,665 

2,000 

1,600 

1,01(9 

444 

M66!,3  9 

iii  1 1  900 

6,000 

8,949 

16,000 

32,00) 

70  000 

3.501 

358 

■51 

908 

10,050 

3.397 

8,8,8 

900 

3,687 

7.7 'O 

29,099 

Ps69,cjo8 


7,200 
3,208 
8,i99 
3,500 
4,929 
3.315 
+  M  2-2,440 
+  ♦4.'  7  ■ 
+  3,26g 
400 
+  M  589,750 
i.S  80,640 

—  $t,0,5 

—  M^.ooo 
+  7,^43 
+  M224  2u6 
+  12,6'io 
+  33009 
+  6,129 
+  782 


£ 

Fs,  72,500 

291,250 

132,000 

290,100 

5.108 

79.736 

M  45353»  o 

^'427.477 

2,837,0  ,0 

75607 

3,688,705 

■  ,615,000 

3,401,200 

625,032 

'69.913 

100,758 

7  ,657 

9^g■  8  . 

76.472 

55169+ 

8,3  « 

223.436 

501,700 

900,3,6 

l'S.2J»  733 
170  luo 

280,549 

2J  424 

13,150 

295,909 

91, 8y 

vl  2i66j,.-y, 

fi»9.o'5 

■07,791 

100790 

v!  30654.00. 

1  8,203,010 

M 1 1 4 ,000 
325.006 

^■  16,918 

I8l98t 

l,75^,»15 

aot.4  3 

■0  9^3 


Jau  I     '  From  Juy  i     c  Nett.    b  15  dayi. 
COLUNIAL  KAILWAtS. 


„  £ 

Ps. 11.570 

—  6,115 

+         2J,200 

+     51. 98 
I  099 

t         23.8  9 

+  M5238971 
4-    M5j,2o7 

—  211,000 
+  4,155 

265,549 

—  iSi.ioo 

—  3)8  200 
1-  172.987 
+  8o2i 
+  28,209 
+  9.723 

—  25  380 

—  sg^-w 
f    ■■0,908 

—  goo 
+  51724 
+       94,100 

¥  173  429 
-Ps.550172 
<•         43.150 

+       5'. 497 

—  8,199 
4.230 

+       82  933 

I  M  ■47.713 
f  •■■'545 
I-  8713 
••  13.  73 
t  Mi4>6i38 
+  S  917,6^8 

—  86,350 

—  M. -1,000 
¥  118,  64 
t  M173520S 
+       51  556 

¥  415876 
+  74.626 
_t^ 7P2 


a  10  days. 


Beira 

Canadian  Northen 
Canadian  PacitiQ   .. 
Gt.  Trk.  Main  Linr 
Gr.  Trk.  Western . 
Petroil  G.  H.&  M 
GrTkPac  Prairie  Sc 
MasiioiialanJ 
Mid.  of  Wnstn,  Aus 
New  Ca^  Central . 
Ri.o  l»~la 


t 

Oct.  'c 

67.63 

F  b.28 

•715.600 

„     23 

3,4r.2..  00 

..     33 

■  86  88. 

„     38 

34,0 '5 

„     38 

■'.■Hl 

„     31 

22,03,7 

Nov.  • 

56.693 

Deo     • 

9.»59 

Ian    26 
Nov.  •<: 

3.317 

9.49'* 

t 

4-       9,"6o 

12 

+  $5>.3C" 

t 

-  ♦J5.00. 

» 

+           499 

1 

-        1.4  :■ 

1 

310 

t 

♦•        5.3 1} 

: 

-        1,486 

¥         3,107 

6 

¥              313 

1 

+        3,3  4 

1 

•  MondiA 


1    luU    I. 


I  Ian. I. 


C 

7<3,''45 

127,263,1  o 

•  20,109.  ou 

1,23  .081 

246.9^2 

84.652 
■85,767 

3r,6M8 

43.221 

87  5 

9  491 

»*rom  Oci.  I. 


£ 
13.927 

S  ,40.4  o 

titte.ooo 

it«,323 

14,34 

5,'j6 

57.5M 

■  486 

3  It] 

614 

S.364 


■  AUS 

MtLTT 

EARNlNna  FOR    MONTH 

NRTT    BARNINOA  TO  DATE. 

Monil.. 

Amount. 

In.  or  Dee. 
on  last  year 

Amount.    '"•,<"  t^- 
on  last  year 

Ools. 

Ools. 

Ools 

Dols. 

AtobiBon  T.  &  S.  F( 

Nov. 

4  100,0  0 

—  I,.  62.000 

II 

14.286.000 

-  i,4'8  000 

Atlantic  Coast  Llii' 

Dec. 

2,  36,000 

t     420000 

■  2 

12,f.26.00. 

f     (07.000 

Balllmnre  &  ')hio  . 

,, 

1,8  I  000 

-   1,165..  OL 

12 

30,5880™- 

-  3,425,ooe 

Canadian    Norther, 

,, 

65.300 

—    758,5'W 

6 

3  3'.5   00 

—  2  9')i,ooo 

Canadian  Pacific   . 

Jan. 

■  168,000 

- 1,263,000 

1 

1,161,00 

—  i,a6j  OX) 

Cbpsa|,eake  Jt  OhI 

Nov. 

1,22  ..000 

-     182,000 

It 

12  861,010 

-  I,4i4.oo0 

Chicago  &  N  W.    . 

>  c. 

2,711,000 

-        10.  rto 

12 

27.015.00 

—  J.«34  000 

CbicaKO  B.irl.  &  0 

Vov. 

1,-  42,000 

— l.OlI.OOO 

1 1 

31.21). .001, 

-  3,950  uoo 

Chicago  G.W. 

294.000 

—     159.OOU 

11 

1.488,000 

—     9^<,ooo 

Chicago  Mll.ftb.r 

I>ec. 

894. -OO 

-l,7iS,oo<. 

12 

23  026,00. 

-  9  338,000 

Chicago,  Rock  i.&P 

Nov. 

i.835.xx> 

+      ',7000 

11 

16.461,000 

-2.534.000 

Colorado  dlHouther. 

•  It 

414.00 

—    213  000 

■  1 

5  32000. 

♦      37  i,coo 

Cuba   .. 

>ec. 

362  716 

1-    310, -.91 

6 

«,■  .6,273 

+      153.195 

1  elaware&  Hu.l. 

Nov. 

ll^O    AXl 

—  483,000 

■  ■ 

5612.0, 

—  I,t  IS-'AJO 

Denver  U  Rio  Grai, 

J, 

i,t,<yia 

—   420,0  0 

■  1 

7,152,000 

—  1.539  ooo 

Bne    .. 

,, 

57.000 

t     148,0  0 

■  2 

Io,5j8,ooo 

-  5.277.'><) 

Gr.Tr.  Main  Line. 

,, 

.  8   ,300 

—  ^123,6.0 

1. 

■.1.9  7.300 

—  ^.627 .9x1 

Grand  Trunk  Wesi, 

^^ 

6 '^5.050 

-      i  1,950 

It 

423.-00 
£67,700 

-  £139050 

De  roitG.I.&Mil 

, 

b  61,700 

-       .  1,1    0 

■  1 

-     <;9(.9'0 

Gt.  Nuitherii 

Dec. 

■  .105,000 

—  1,401.000 

12 

22,9  7,000 

—  6,179.000 

Illinois  Central 

Nov. 

1,460  >A> 

-409000 

11 

17  538,000 

+  3,  90.    00 

KinsasCity  Soutlin 

i>«c. 

315.00.. 

—        19,000 

12 

4.4y5.ooo 

¥       569  000 

Leiiigb  Valley 

Nov. 

628  000 

—     3.6,000 

!■ 

9.240,000 

—  3,410,000 

Lj>ii>viilfc&  Nasbvi 

ec. 

1,296000 

-     178  00,, 

■  ■ 

10,919,00. 

—     83'i,ooo 

Minn.  S.P.  (Soo)i  .. 

,, 

877,0X1 

—     29400 

■  I 

c,974,ooo 

-3.351.  00 

Misb.  K.  Si  Icxas 

Nov. 

972,000 

—     271,000 

.■ 

7. 193.000 

1.  2  447.000 

Missouri  Pacific   . 

J, 

l,6>),o.o 

¥     32I,,>io 

5 

9425,000 

t   1,9  0,  XX) 

NewVorkCsui.&H 

^^ 

2  939.000 

-■,742,000 

11 

4,049.00.. 

—  13135.003 

N.V.  N.Havenan 

I,46i.o<x 

-    001    0 

II 

19,597  000 

- 1,665,000 

New  York  Out.  Ji  W 

Dec. 

111  00.1 

—       26  OX) 

12 

2,228,000 

-      97,'  00 

Norioik  &  Western 

1,199,000 

-     200  (K). 

12 

19,871.00,, 

-  3.i9o.oco 

Noiiheru  I'acihc   . 

Nov. 

1,423.000 

-2,I»2  000 

11 

26,OJ9,o.A 

—  3,378,000 

Peuiisylv,.nia     Eab 

<,id  West  Lioes. 

Dec. 

2,010,0*0 

-4,493.'>oo 

12 

88,450,000 

—  20891,000 

Pbtl  and  Reading  .. 

Nov. 

1,  64,.,  0 

-1,199,202 

11 

1  ,»77,7  0 

—  6,626,0 10 

Keaainif 

,, 

577,033 

5,826 

11 

9, coo  oco 

T     212,360 

3i     L^oulb  OL  ^<^ii  f 

,, 

1.304.-- 

¥     351.00 

5 

8,569,00., 

+  1,093  000 

Seaboard  All  Line, 

igi.ooo 

¥       .6l,0OU 

Ii 

6  691,000 

¥        42.000 

Soutueru 

Dec. 

2,958,oo>, 

¥     241,000 

6 

■  1,7  j3  000 

4-  2,(91.000 

Soutbnrn  Pacibo   . 

Nov. 

4.465,  AX 

— 1,  38,000 

U 

55  377,00.. 

+  7.255.  •• 

Uuiuu  Paoinc 

, 

3,9,1.000 

-      668,0  AJ 

11 

3rf,6j4.ooo 

—  3,3.2,000 

WabaaB 

Dec. 

705,000 

-      42j,OjO 

12 

8)4, 000 

—     421,000 

I  locludca  WibOuusiu  Ccaual.    *  Oru:iJ>  CAimi^n.     t  burviub.    ^  Deficit. 


What    Balance   Sheets   Tell. 


WILLIAM   GOSSACE  AND  SONS,  LTD. 

The  accouats  issued  by  this  soap  and  candle  firm  are  terribly 
unilluminating.  We  are  told  that  a  dividend  has  been  paid  on 
the  ordinary  shares,  but  the  amount  is  not  stated,  and  the 
amount  carried  forward  (the  only  indication  given  of  a  profit 
and  loss  account)  is  about  the  same  as  last  time  at  ;^  10,800. 
But  we  notice  that"  the  bank  overdraft  has  risen  to  £ASy,ooo, 
an  increase  of  ;^326,ooo,  while  creditors  have  fallen  ;^48,ooo, 
stocks  have  increased  ;^  106,000,  and  debtors  ^80,000 — rather  a 
lop-sided  looking  arrangement.  Cash  in  hand  on  November  30 
amounted  to  the  large  sum  of  ^^4,500. 

ARNOLD     J.     VAN     DEN     BERGH,     LTD. 

Accounts  for  the  year  to  April  last  are  only  just  submitted, 
but  they  show  that  the  business  continued  very  prosperous, 
and  the  gross  profits  show  an  increase  of  no  less  than  ,1^55,000 
at  ;fi54,2oo.  Expenses,  however,  were  heavier,  and  ;Ji2,ooo 
more  at  ;^4i,i6o  is  written  off  for  depreciation,  with  the  re- 
sult that  the  nett  profit  is  ,£1,500  lower  at  ;£4i,46o.  Never- 
theless, the  dividend  and  bonus  are  raised  from  25  per  cent, 
to  40  per  cent.,  but  by  omitting  to  place  anything  to  reserve 
against  ,,^10,000  last  time,  the  balance  forward  is  increased  by 
;f6,ooo  to  ;f37,07o. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 

£9,700,000 
or  over  £31,000  for  each  Working  Day. 

Copies  of  THE  INVESTORS'   REVIEW  can 
be  obtained  Jn  Paris  at 

Messrs.  W.  H.  Smith  &  Son's, 
248.  Rue  de  Rivoli. 


Ptiated  by  the  St.  Clcmints  Pafss.  Ltd,  Poitogai  Str.et.  Kingtnay,  Lond  >n,  W.C,  for  the  Propietorof    i  hi  iM^iaTon'  Rxvisw,  and  Putilisbrd 
by  Tui  POPKIITOR,  Norfolk  Hou^e,  Nortolli  Street,  Straud,  W.C.  3.— Maro.>i  9,  tgiS.  iN  3i3i 


Ubc 


3nve6tot6'  1Re\?few 


FOUNDED    BY    A.     (/.     WILSON,     FEBRUARY,     1892. 


Vol.XLI.-No  1,054] 

NEW  SERIES. 


L  »«« 


rK«|{lstere(i  aa  an 


ewspapar. 


SATURDAY,  MARCH  i6,   1018 


[Price  6d. 


CONTENTS. 


Passing  Events : —  Revenue  —  Indian  Budget  —  Select 
Commission  on  National  Expenditure  —  Commercial 
Banking  Company  of  Sydney  —  State  of  San  Paulo's 
Budget  —  Midland  Railway  of  Western  Australia  ■ — ■ 
County  of  London  Electric  Supply  —  Eastmans  —  Law 
Land  —  Callender's  Cable  and  Construction  —  Arizona 
Copper  (pp.  267-70). 

Leading  Articles: — "Stunts"  in  Borrowing  —  The  Bank 
Amalgamations  —  Bolshevism  in  the  Home  —  By-the-Way 
War  Notes  —  The  Excess  Profits  Duty  in  Practice  (pp. 
270-3  and  p.  275). 

Insurance  News  : — Friends'  Provident  and  Century  Company  — 
Employers'  iability  Corporation  —  London  Assurance  — 
British  Law  Fire  (p.   274). 

American  Business  Notes  ■ — Pennsylvania  Railroad  and 
Pennsylvania  Co.  —  Pittsburg,  C.C.  and  St.  Louis  — 
Norfolk  and  Western  (pp.  274-5). 

The  Week's  Stock  Markets  (pp.  278-9). 

London  Produce  Markets  (p.  279-80). 

The  Week  in   Mines  (pp    281). 

Dividends  Announced  (pp.  281-2). 


CAMTADA. 


THE    BANK   OF 
BRITISH    NORTH    AMERICA. 


Established  1836. 


INCORPORATED  by  ROYAL  CHARTER  1840. 


PAID-UP  CAPITAL     ..£1.000,000.  RESERVE  FUND     . .  /620,ooo. 

Head  Office:— 5,  GRACECHURCH   STREET,   LONDON,  E.G.  3. 
Court  0/  Directors. 
Lt.-Col.F.  R.S.BALFOUR.  Lieut.  E.GEOFFREY  Hon.  A.  R.  MILLS,  M.P. 
J.  H.  BRODIE.  HOARE.R.N.V.R.     Major  C.  W.TOMKINSON 

J.H.MAVNECAMPBELL.    F.LUBBOCK.  G.D.WHATMAN. 

E.  A.  HOARE, 

Deposits  received  at  rates  which  may  be  obtained  on  application. 


Bills    of    Exchange    negotiated. 
Dividends    and    Coupons    collected. 
Purchase    of   Stocks    and    Shares. 


ALL     KINDS     OF      BANKING      BUSINESS    TRANSACTED. 


I 


THE  BANK  OF  TAiWAN,  LTD. 

Incorporated   by   the   Special   Charter  of   the   Imperial 
Japanese  Government,  1899. 


HEAD  OFFICE 


TAIPEH,   FORMOSA. 


BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samararg, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.G.  2. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED 


Head  Oriico— 71  Old  Broad  Street.. E.C. 

Subscribed  Capital         jj-j  276  74-7 

Paid  up  Capital '6691685 

Reserve  Fund  and  Undivided  Profits         ..  375  680 

Reserve  Liability  of  Proprietors       .,  ,,  606*962 

REMITTANCES  made  by  CABLE. 

DRAFTS,  LETTERS  OF 
Brancjies  and  Agents. 

BILLS  on  Australasia  NEGOTIATED  or  sent  for  collection, 

DiFOSITS  RECEIVED  for  periods  and  at  rates  which  may  be  ateertainad 
on  apiilication,  and  Banking  Business  of  every  dMortptiea  cosdawed 
mui  Aaamuia. 


10 

0 

1  1 

10 


CREDIT  and  CIRCULAR  NOTES  issued  upon 


Money  and  Credit  Notes : — Better  Demand  for  Credit  —  Bank 
Return  —  Bankers'  Contributions  to  "Tank  Week"  — 
Bank  Fusions  and  Their  Usefulness  —  National  Metal  and 
Chemical  Bank  —  liighth  German  War  Loan  —  Foreign 
Exchange  Movements —  Silver  (pp.  276-8). 

Mining  News : — Transvaal  Gold  Production  —  Native  Labour 
Returns  —  Penrikyber  Navigation  Colliery  —  Great 
Western  Colliery  —  North's  Navigation  Collieries  —  Tin 
Fields  of  Northern  Nigeria  —  Messina  (Transvaal) 
(p.  281). 

What  Balance  Sheets  Tell : — Linen  Thread  Co.  —  Debenhams  — 
Cannon  Brewery  Co.  —  Bent's  Brewery  Co.  — 
Woolcombers  (p.  283). 

Company  Meetings : — Union  of  London  and  Smiths  Bank  — 
Scottish  Widows'  Fund  and  Life  Assurance  Society  — 
Underground   Electric  Railways    Company  of    London  (pp. 

284-7). 

Tea,  Oil,  and  Rubber  (pp.  282-3). 

Company  Results  in  Brief  (p.  283). 

Answers  to  Correspondents  (p.  287). 

TraflSc  Returns  (p.  288). 

Letters  to  the  Editor  (p.  288). 


THE  TRUSTEES  CORPORATION 

(LIMITED). 


CAPITAL    - 


£1,050,000. 


m 

-m 

^ 

nHif 

ffl^M^-'rlvfv^'i^ 

^1 

I^jI 

\c\  >«^ 

J^Y^r 

hi 

^ 

-^ 

¥ 

The  tirst    Corporation    founded    in  th«    United 
Kingdom  to  act  as  Executor  and  Trustee  of  Wills 

and  Settlements. 

Trustees  for  Debenture  Issues. 

Agents  for  Foreign,  Colonial  and  Municipal  Loans. 

Bonds   itr«nted    to    Receivers    and 
Adm  inis  t  re  to  rs. 

Leasehold  and  Sinking  Fund  Policies  issued. 

^^PpQ<^p^  Safe  Deposit  and  Halls  for  Meetings  at 

^^^^ss^^'^^^*'^  Winchester  House. 

Pamphlet  sent  on  application  to  the  Secretary  at  the  Head  Office. 

WINCHESTER    HOUSE,  OLD  BROAD  ST.,  LONDON,  E.G.  2. 

Liverpool  Branch  and  Safe  Deposit :  2,  Exchaage  Street  East. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital   £4,000  000 

Paid-up  Capital 1.800,000 

Reserve  Fund    2,000.000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendoza,  Concordia,  Bahia 
Blaoca,  Cordoba,  Tucuman,  Parana,  Barracas  (Buenos  Aires),  Once 
(Buenos  Airesj,  Boca  (Buenos  Aires),  Calle  Sania  Vt  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires),  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agency),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro,  Sao  Paulo,  Santos,  Per- 
nombuco,  Para,  Bahia,  Victoria,  Curityba,  Manaos  (Agency).  CHILI — 
Valparaiso,  Santiago.  FRANCE— Paris  (:6  Rue  HaMvy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


UNION      BANK     OF     CANADA. 

Incorporated  1865.  Head  Office:  WINNIPEG. 

PAID-UP  CAPITAL $5,000,000 

RE5T   AND    UNDIVIDED    PROFITS «3,6oo,oaa 

TOTAL   ASSETS    EXCEED  $143,000,000 

The  Bank  has  over  300  Branches  in  Canada,  and  Agents  in  the  principal 

cities  in  America.       General  Banking  Business  Conductep. 

DapOftitfi  Received  for  fixed  periods  at  favourable  rates,  which  may  ht 

ascertained  on  application  to 

London  Odioas  :  t,  PRINCES  STREET.  E.C.  2,  and  28.  HAVM««KET,  S.W 
N«w  York  A£ency :  49.  Wall  Street 


266 


Zbc  Jnvcstors'  IRevtew. 


March  i6,  1918. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Ollice  1  15,  Gracechurch  Street,  London,  E.C.  3. 


Capital  Autboriied 
Capital  bfued 
Capital  Paid  Up  ... 
Reterve  Fund 


£1,500,000 

1,125,000 

5*2^00 

600,000 


Branches  t 

INDIA.  BUKMAH.  CEYLON.    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS.    MAURITIUS. 

The  Bank  buys  and  lells  Bills  of  Ezchanfe,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  East,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  oupTttnt  Rooounts  interest  is  allowed  at  2  percent,  per  annum  on 

daily  balances. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1880. 

Subicribed  Capital        Yen  48,000,000 

Capital  Paid  Up Yen  36,000,000 

Keserve  Fund         ..        ■■  ..    Yen  22,100,000 

Htad  Office :  YOKOHAMA. 
Branchci  and  Agencies  at 
Bombay.  Honolulu.  New  York.  Slngapoare. 

Calcutta.  Hong  Kong.  Osaka,  Sydney. 

Changchun.  Kobe.  Peking.  Tientam. 

Dairen  (Dalny).  Los  Angeles.  Rangoon.  Tokyo. 

Fengtien  (Mukden).       Lyons.  San  Francisco.  Tsinanfu. 

Hankow.  Nagasaki.  Seattle.  Tsingtau. 

Harbin.  Newchang.  Shanghai. 

The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere 
and  transacts  General  Banking  Business. 
Deposits  received  for  fiied  periods  at  rates  to  be  obtaint  i  on  applicaticn. 
London  Office:  7,  BISHOPSGATK,  E.C.j. 

K.  TATSUMl,  Manager. 


FARROW'S  BANK  LIMITED 


Authorised    Capital 
Shapes    issued 
Shapeholdeps 


£1,000,000 

700,000 

4,000 


At]  descriptions 
of  Banking  busi- 
ness, including 
the  collection  of 
Bills.  Dividends, 
Annuities,     etc., 

transacted. 
Foreign  Money 
eichansed  and 
Drafts  issued  to 
all  parts  of  the 
World. 


Chairman ; 
Mr.     THOIVIAS     FARROW. 

EVERY   DESCRIPTION 

OF  JOINT-STOCK 
BANKING  JRANSAOTED 

Fc  peign  Banking  business  of 
all  descriptions  undertaken. 

Atfents  throughout  the  World 


Stronfi  Rooms  for 
the  safe  custody 
of  deeds  and  other 
property  provided 
for  tlie  use  of  tlie 
Bank's  customers 
Stocks  and  Shares 
bought  and  sold 
on  behalf  of  cus- 
tomers and  the 
public    genera'ly. 


HEAD      OFFICE  :      1,      CHEAPSIDE.      LONDON,     E.C.  2 

Branches  throughout  the  United   Kingdom,      a  H  &  co. 


BONDS   CANCELLED. 


INSURANCE. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 
£e,700,000 

or  over  £31,000  for  each  Working  Day. 

ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head   Office:  BARTHOLOMEW  LANE.  LONDON,  E.C.  2. 


ASSETS    EXCEED    £24,000,000. 

Ghalpman  i 
The    Hon.    N.    CHARLES    ROTHSCHILD. 


The  operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  information  respecting 

ESTATE    DUTY   *nd 

CHILDREN'S  EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  application 
to  the  Head  Office  as  above, 
OP  to  any  of  the  Offices  or 
Agencies   of    the    Company. 

O.  MORGAN  OWEN,  General  Manager, 


IMPERIAL   JAPANESE  GOVERNMENT    4.J, 
CENT.  STERLING  LOANS  OF  1905. 


PER 


The  YOKOHAMA  SPECIE  BANK,  LIMITED,  LONDON, 
announces  that  ;f3l9,600  4J  per  cent.  Sterling  Bonds  of  the  1st 
series,  and  ;fl84,520  4i  per  cent.  Sterling  Bonds  of  the  2nd 
series  have  been  purchased  on  behalf  of  the  Imperial  Japanese 
Government  for  the  purpose  of  cancellation,  and  the  said  Bonds 
are  now  cancelled. 

The  quantities  and  denominations  of  the  Bonds  so  cancelled 
are  the  following : — 

First  Series.  Second  Series. 

£  £ 

18  of  500  531  of  200 

808  of  200  692  of  100 

1,490  of  100  456  of     20 

London,  11th  March,  1918. 


THE  PROVIDENT  ASSOCIATION  OF  LONDON 

LIMITED. 

Provident  House,  Bishopsgate,  London,  E.C.  2. 

Founded  1877. 

authorrskd  bv  act  of  parliament,  istituled 

Provident    Association    of    London    Act,   1910. 


Invested  Funds 


£6,822,535. 


Total  Advances  upon  House  Pr  pert;  to  P  licy-holders  and 
Cer  ificae-holders  exceed 

&i      JVUX^XylOM^S. 

W.   W.  BENHAM,!      Joint 
J.  .J.  GREEN,  i  Managers. 

Provident  House,  Bishopsgate,  London,  E.C  2. 


Zbc  3nveetorg*  IReview. 
SCALE  OF  CHARGES  FOR  ADVERTISEMENTS. 


PROSPECTUSES. 

Full  Page *25      O 

Under  one  page,   at  per  inch,  1       6 

single  column 
Special  positions  by  arrangement. 
REPORTS    OF    COMPANY    MEETINGS. 
Minimum     ...  ...  •■•        »^      O 

Per  Column...  ...  ...  6    11 

COMPANIES'    BALANCE-SHEETS. 
Whole  Page  ...  ...    £15    15 

Half  Page   ...  ...  •  ■  8       2 

Quarter  Page  ...  .  •  •  *       2 

DIVIDEND    NOTICES,    &C. 
Per  Inch     ...  '.  ...       «0   1 2 


INSURANCE 


COMPANIES. 
O  18    9 


BANKS    AND 

Special  position 

Front    I'age    (cover)    or   facing 

Money  Article,  per  inch      ...        fiO  16    O 
Ordinary  position,  per  inch      ...  O  12    6 

Discount  for  Series.— 5%  for  Thirteen,  10%  for  Twenty-six, 

15%  for  Thirty-nine,  and  20%  for  Fifty-two. 

"  INVESTORS'  REVIEW,"   Norfolk  House,  Norfolk  Street,  Strand 
London,  W.C 


^be  5nveetore'  IReview. 


Vol.  XLI.-No.  1,054. 


SATURDAY,  MARCH  16,  1918.        C"VX*4".')  Price  6d. 


PUBLISHER'S    NOTICES. 

IbC  investors'  IReVteW  is  a  subscription  Joumal.  and  will 
De  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning, 
on  the  following  terms  : — 

One  Year,  £1  5s.  Od.    Six  Months,  128.  6d.    Three  Months,  6s.  6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year,  JEl  8s.  Od.     Six  Months,  14s.  Od.    Three  Months,  7s.  Od, 

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Passing   Events. 


Last  week's  ^ross  overturn  by  the  Treasury  was 
income  £,176,445,000  and  expenditure  ;^"i 73,962,000. 
I'lie  lixchequer  balances  were,  therefore,  increased  by 
;£."2, 483,000  to  £^6,732,000.  The  actual  expenditure 
of  the  week  was  ;^"4g,634,ooo  on  suppl),  or  about 
;^.  13,000,000  less  than  the  outgoings  of  the  previous 
week,  and  barely  ;£"7,09i,ooo  per  day.  Interest  on  war 
debt  took  another  ;£,' 1,1 54,000,  so  that  the  actual  out- 
goings of  the  week  on  all  services  was  ;£.5i,i  11,000,  or 
;£,"7,30i.ooo  per  day,  well  on  to  half  the  week's 
collection  and  consolidation  of  debt.  As  usual,  the 
gross  amount  turned  o\er  was  swollen  out  by  mere 
credit  receipts  and  disbursements.  The  most  notable 
amongst  receipts  was  £^54, 188,000  from  National 
War  Bonds  against  ^£.'19,050,000  encashed  in  the 
])revious  week.  There  was  also  ;£^3 1,052, 000  received 
on  account  from  "other  war  debt"  sources  and 
X  10,000,000  was  raised  on  ways  and  means  advances. 
I'o  make  up  the  £■176,445,000,  £"66,212,000  was 
obtained  on  Treasury  bills  sold  and  £'2,000,000  came 
from  War  Savings  certificates.  From  the  means  thus 
|)rovided  £'82,870,000  Treasury  bills  were  repaid, 
together  with  £"7,001,000  of'  "other"  debt  and 
£-3 ''-50,000  due  on  ways  and  means  advances,  the 
nett  result  of  it  all  being  that  the  outstanding  total  of 
Treasury  bills  was  reduced  by  £"16,938,000  to 
;^i. 0-23 - 495 'Ooo.  Within  a  fortnig-h't,  therefore,  entirely 
as  a  consequence  of  the  sales  of  National  War  Bonds', 
the  amount  of  debt  outstanding  in  Treasury  bills  has 
been  reduced  by  some  £'28,000,000.  It  will  soon,  how- 
e\er,  begin  to  expand  again  unless  other  methods  of 
obtaining  money  are  meanwhile  lighted  upon. 


Up  to  date  the  total  receipts  of  tlie  Exchequer  from 
taxes  and  Government  monoi>olics,  &c.,  lias  been 
£'632,281,000,  and  the  total  revenue  anticipated  in  the 
Budget  from  these  sources  was  £^638,600,000,  not  the 
£570,000,000  we  erroneously  gave  through  taking 
account  of  taxation  income  alone.  The  actual  receipts 
for  the  current  fiscal  year  up  to  last  Saturday  are, 
therefore,  within  £'6,320,000  of  the  Budget  estimate  for 
the  entire  year,  and  there  are  still  22  days'  receipts 
to  come  in.  Assuming  that  the  revenue  continues  to 
be  paid  over  on  no  higher  scale  than  last  week's  total, 
then    the  year    should  end  with  a  surplus  of  at  least 


£'60,000,000  beyond  the  Budget  estimate,  with 
probably  at  least  one-fourth  of  the  income-tax  still  to 
come  in  in  July.  That  is  to  ,say,  the  year's  revenue 
will  probably  come  close  to,  if  it  does  not  exceed, 
£700,000,000  without  the  postponed  payments  of 
income-tax.  That  is  a  figure  whose  significance  cannot 
be  too  emphatically  dwelt  upon,  for  although  the 
sources  from  whence  such  revenue  has  been  drawn 
must  be  diminished  and  in  part  disapi^ear  altogether 
\\  lien  i>eace  returns,  the  country,  nevertheless,  is  show- 
ing a  capacity  to  stand  up  under  its  load,  which  is  in 
the  highest  degree  encouraging.  It  calls  for  bold  and 
manful  treatment  of  the  nation  and  its  stitl  immense 
resources  by  the  framers  of  next  year's  taxation.  Can 
we  trust  the  present  Government  to  give  us  that?  We 
have  doubts,  but  will  .soon  know  the  answer. 


Nothing  would  be  more  inopportune  at  the  present 
moment  than  a  discussion  upon  Indian  taxation  and 
resources.  Whether  the  taxation  is  wise  or  fairly 
levied,  whether  it  gives  indication  of  strain  or  the 
reverse,  are  points  quite  beyond  the  range  of  practical 
affairs  at  the  present  time.  Sir  William  Meyer,  in  what 
we  suppose  will  be  his  final  Budget  statement,  had  a 
tale  of  current  prosperity  to  tell  which  should  make  us 
all  thankful,  and  which  forbids  us  to  inquire  further. 
Thanks  to  good  monsoons — for  all  depends  on  that — 
the  present  fiscal  year  will  close  on  the  31st  inst.  with 
a  surplus  calculated  at  £'5,750,000  sterling.  The  rail- 
way receipts  have  grown  unprecedentedly,  but  there 
has  been  a  counterbalancing  increase  of  military 
charges  which  have  risen  by  some  £^8, 000, 000  to 
£"9,000,000  a  year  on  pre-war  totals  to  £"29,000,000. 
Indeed,  that  cannot  be  all  that  India  has  had  to  pay 
on  account  of  the  military  operations  of  the  past  year, 
but  from  the  summary  telegraphed  to  this  country  wc 
cannot  tell  exactly  what  India  has  paid,  or  is  paying, 
on  account  of  the  war.  Sir  William  Meyer,  howexcr, 
tells  us  that  the  Government  has  disbursed  some 
£!"ioo,ooo,ooo  on  account  of  the  Home  Government, 
from  which  we  infer  that  the  Home  Government  is 
bearing  the  bulk  of  the  war  costs,  as  it  should,  although 
India  meanwhile  finds  the  money.  Owing  to  the  diffi- 
culty of  making  its  payments  the  Indian  Government 
has  now  such  a  large  mass  of  funds  in  London  that  it 
is  proposed  to  invest  £"20,000,000  of  its  balances  in 
British   Treasury   bills  against  the  temporary  debt  in- 


268 


Zbc  3nvestot8'  IReview* 


March  i6,  1918. 


currcci  in  India  by  the  British  Government  and  in  order 
to  provide  for  liabihties  which  will  in  one  way  or 
another  arise  short'ly  after  the  war  ends.  ISut  it  has 
Ijecn  ]K)ssible  to  pay  in  cash  _;^'35,ooo,ooo  of  the 
;^' 1 00,000,000  War  Loan  contrilniti<jn  raised  by  India 
to  assist  us  in  the  fight,  and  the  ;£,'20,ooo,ooo  just 
mentioned  is  entirely  distinct  from  that  ;£^35,ooo,ooo. 
Sir  William  says  that  premium  Ixjnds  would  be  no  good 
in  Inilia,  and  will  not  l>e  issued  there.  He  may  be 
right,  the  Indian  people  being  so  ignorant  and  mostly 
so  |X)or,  but  we  take  liberty  to  doubt. 


In  reviewing  the  events  of  his  five  years'  term  of 
office  as  financial  member  of  the  \'iceroy's  Council,  Sir 
William.  Meyer  indicated  that  the  Imperial  expenditure 
in  India  was  now  ;^i9,ooo,ooo  higher  than  in  1913, 
but  ;^io, 000,000  of  this  was  almost  entirely  due  to  the 
war.  Another  ;£,"6,ooo,ooo  represented  interest  and 
sinking  fund  charges  in  respect  of  the  war  contribution 
loan  of  ;^' 1 00, 000, 000,  and  which  formed  only  part  of 
the  burden  which  the  war  had  imposed  on  India.  Since 
it  began  the  expenditure  for  his  Majesty's  Government 
and  analogous  items  had  involved  a  nett  outlay  in 
India  of  ;£!"! 28,000,000,  and  India  has  already  lent 
;^67,ooo,ooo  to  the  Home  Government  over  and 
above  the  ;^ioo,ooo,ooo  loan.  In  the  coming  year 
;£,  1 6,000,000  more  wiU  be  lent  in  the  same  way  in 
connection  with  a  further  investment  of  paper  currency 
reserve  funds  in  home  Treasury  bills,  but  these  figures 
only  serve  to  emphasise  India's  present  financial 
.strength.  "  No  one,"  said  Sir  William,  "would  have 
imagined  three  years  ago  that  we  should  be  able,  with 
a  moderate  increase  of  taxation,  to  offer  his  Majesty's 
Go\ernment  ;£r  100,000,000  as  a  special  war  contribution 
over  and  above  the  additional  charges  which  war  has 
entailed  on  India's  own  military  Budgets,  or  that  India 
could  Ixirrow  anything  like  as  much  as  has  been 
borrowed,  raising,  for  example,  more  than  one-third  of 
the  ^100,000,000  contribution  by  a  direct  loan  within 
the  country  itself  in  a  single  year,  or  that  it  should  have 
been  possible  for  the  Indian  Exchequer  to  meet  the 
enormous  demands  for  war  supplies  made  by  the 
British  Government."  Happily  monsoons  have  been 
generally  favourable,  and  we  hope  they  will  continue 
to  be  so,  else  five  years  hence  the  story  may  not  be  so 
uleasant.  But  that  India  has  strength  unsuspected  is 
beyond  doubt,  and  that  India's  loyalty  is  Ijeyond  praise 
we  also  gratefully  acknowledge.  That  loyalty  entitles 
the  great  dependency  to  generous  treatment  in  all 
possible  ways  and  to  all  possible  extent  at  our  hands 
when  the  time  comes.  No  meanness  must  be  allowed 
to  enter  into  the  settlements  made  either  monetarily  or 
politically.  We  must  stand  by  India  to  the  uttermost 
if  she  also  is  to  overcome  the  ravages  of  war. 

Space  does  not  allow  of  our  dealing  fully  this  week 
with  the  first  report  (Session  1918)  from  the  Select 
Committee  on  National  Expenditure,  which  has  just 
been  issued  as  a  Parliamentary  paper.  It  deals  with 
the  organisation  and  financial  defects  of  the  Ministry 
of  Munitions,  and  is,  on  the  whole,  most  depressing 
readmg.  Nobody  will  deny  that  the  task  of  the  Ministry 
was  a  most  difficult  one  in  converting  a  large  portion 
of  the  industries  of  the  country  from  a  peace  to  a  war 
footing,  and  every  credit  must  be  given  for  the  speeding 
up  of  the  output  of  munitions  which  resulted  from  its 
effort.s.  The  Ministry  has  Ixvome  a  vast  regulative 
establishment  administering  practicallv  the  whole 
engineering  and  chemical  industries,  and  is  probablv 
the  largest  institution  of  the  kind  the  world  has  ever 
seen.  But  it  has  grown  up  in  a  state  of  chaos  and  lack 
of  co-ordmation  that  is  almost  incredible,  and  in  one 
of  Its  primary  objects— the  obtaining  of  adequate  sup- 
plies at  reasonable  prices-it  has  failed  lamentablv  so 
iar  as  economical  production  is  concerned.  No  doubt  ' 
after  nearly  three  years'  experience,  substantial  econo- 
mies arc  now  being  effected,  and  it  is  stated  that  in 
the  ca.se  of  cordite  :ilone  iT^.ooo.ooo  has  been  .saved 
through  the  reduction  in  prices  following  accountants' 
investigations.  It  is  claimed  that  the  reductions  in  the 
contract  prices  of  gun  ammunition  following  technical 


investigations  have  resulted  in  savings  of  over 
;^35,ooo,ooo  during  the  two  years  from  September, 
1915.  In  the  ca.se  of  one  contract  for  gun  equipments 
in  which,  owing  to  ignorance  regarding  cost,  it  was 
originally  decided  to  accept  the  firm's  audited  figure, 
an  agreement  was  finally  reached  which  resulted  in 
saving  ;^2,ooo,ooo  on  the  auditor's  price  of  ;£,'7, 750,000. 
Similarly  in  the  case  of  aircraft  contracts,  investigation 
has  reduced  provisionally  accepted  tenders  amounting  to 
about  ;^7, 000,000  by  at  least  one  million.  Examples, 
it  is  stated,  could  be  quoted  indefinitely  of  the  excessive 
prices  paid  by  the  Contracts  Branch  so  long  as  they  had 
no  other  information  to  guide  them  than  the  opinion  of 
the  Supply  Branch  as  to  a  reasonable  price.  The  Chan- 
cellor of  the  Exchequer,  in  stating  that  the  negotiations 
with  contractors  are  carried  out  by  the  Supply  Brancnes, 
claimed  that  the  latter  are  in  possession  of  information 
regarding  the  cost  of  manufacture.  "  It  would  app>ear, 
however,"  the  report  says,  "that  the  Chancellor  has 
been  misinformed,  as  this  is  not,  and,  speaking  gene- 
rally, never  has  been  the  case.  On  the  contrary,  the 
whole  history  of  the  Finance  and  Contracts  Branches  of 
the  Ministry  in  their  struggle  to  reduce  prices  has  lain 
in  the  continual  effort  to  obtain  information  regarding 
the  costs  of  manufacture  which  the  Supply  Branches 
could  not  provide."  The  Committee,  therefore,  em- 
phasise the  necessity  of  strengthening  the  financial 
control  while  in  no  way  seeking  to  disparage  the  work 
of  the  Supply  Officers.  But  they  very  properly  point 
out  that  with  a  truer  conception  of  their  respective 
duties  the  attitude  of  the  Supply  and  Finance  Branches 
should  have  been  that  of  close  friends  and  eager  helpers. 
Supply  should  be  glad  to  leave  to  the  Finance  Branches 
the  troublesome  questions  of  price  and  accounts,  and 
should  have  afforded  the  latter  every  assistance  in  their 
power.  This  position,  however,  does  not  seem  to  have 
been  at  all  generally  adopted  by  the  Supply  depart- 
ments. On  the  contrary,  the  Committee  say  they  find 
a  disposition  on  the  part  of  some  at  least  of  those  de- 
partments to  regard  the  Finance  and  Contract  Branches 
as  a  hindrance  to  the  prompt  carrying  out  of  their 
work,  and  they  add  that  this  attitude  makes  neither  for 
efficient  work  nor  for  economy.  W'e  may  leave  it  there 
for  the  present,  and  must  defer  consideration  of  the 
Committee's  recomwiendations  till  another  occasion. 


In  the  half-year  to  December  31  the  nett  profits  of  the 
Commercial  Banking  Co.  of  Sydney,  Ltd.,  increased 
;^'i3,ooo  to  ^151,160,  and  the  amount  brought  in  was 
;£,'i9,5oo  larger.  So  the  usual  dividend  at  the  rate  of 
10  per  cent,  per  annum  is  repeated,  but  ;^35,ooo  more 
at  ;^6o,ooo  is  placed  to  reserve  fund  (raising  it  to  a 
round  two  millions,  the  same  as  the  paid-up  capital), 
and  the  carry  forward  is  reduced  by  ;£^2,500  to  ;^" 50, 250. 
Deposit  and  current  accounts  have  risen  ;^i,850,ooo  to 
;^24,8io,ooo,  against  which  cash  has  increased 
;^"i,20o,ooo  to  ;£?7, 290,000,  and  short  loans  are 
;^"76o,oc)0  higher  at  ;<^i,640,ooo.  Investments  are 
quarter  of  a  million  up  at  ;£r4,270,ooo,  but  discounts  and 
advances  are  slightly  lower  at  ;^'i4,47o,ooo.  The 
balance-sheet  totals  at  ;£'30, 420,000,  an  increase  of  close 
on  two  millions,  and  although  there  are  no  indications 
of  more  active  business  conditions  the  bank  prospers 
as  it  deserves  to  do  with  its  able  and  prudent  manage- 
ment. It  has  just  reached  the  age  of  three  score  and 
ten  years,  and  its  record  is  a  highly  creditable  one. 


.\  whole  page  of  Tuesday's  Financial  Times  was 
occupied  by  tables  .setting  forth  the  details  of  the 
State  of  San  Paulo's  Budget  estimates  for  the  current 
year.  It  is  a  pity  these  details  are  .so  minute,  because 
that  fact  and  the  currency  in  which  the  accounts  arc 
set  forth,  both  tend  to  repel  English  students  of  public 
finance,  and  that  is  a  pity,  for  San  Paulo  is  the  most 
important  of  all  the  States  which  go  to  make  up  the 
Republic  of  the  United  States  of  Brazil,  and  it  has 
been  in  many  ways  managed  as  a  model  State,  its 
finances  having  been  well  ordered  and  clean  for  many  a 
year.  We  can  only  give  the  barest  summary  of 
the  facts.     On  the  revenue  side  the  principal  source  of 


Makch  i6,  1918. 


TLbc  Jnvestove'  IReview. 


269 


If 


income  is  in  export  dues,  which  are  set  down  for 
38,800,000  milreis,  and  altogether  the  income  is 
91,194,000$,  including  8,910,000$  of  extraordinary  re- 
venue. But  besides  this  50,000,000$  is  set  down  to 
come  from  a  tax  of  5  francs  per  bag  of  coffee  ex- 
ported. We  do  not,  however,  trace  in  the  expenditure 
accounts,  which  are  extremely  elaborate,  what  is  done 
with  that  excess  revenue.  Perhaps  it  is  not  expected  to 
be  forthcoming  at  the  present  time.  Expenditure 
balances  the"  income  within  a  very  few  dollars,  the  two 
largest  items  being  26,026,000$  for  the  interior  and 
28,594,000$  for  finance.  Much  attention  is  given  to 
education,  and  the  .State  also  spends  large  sums  of 
money  in  a  variety  of  ways  calculated  to  improve  the 
condition  of  the  population,  and  to  extend  the  pro- 
ductiveness of  the  soil.    Long  may  San  Paulo  prosper. 


I 


No  material  progress  was  made  by  the  Midland 
Railway  Co.  of  Western  Australia,  Ltd.,  in  the  year 
to  June  30  last.  Gross  receipts  were  ;^i,200  up  at 
;^"89,200,  but  working  expenses  also  were  higher  at 
;^"5g,7oo,  and  the  nett  receipts  were  ;£^5oo  larger  at 
;£29,500.  It  may  be  of  interest  to  mention  that  for 
the  year  to  June  30,  1914,  gross  receipts  were 
^147,300,  and  the  nett  revenue  was  ;^'68,300,  so  that 
there  has  been  a  heavy  falling  off  in  the  meantime. 
This,  however,  is  only  part  of  the  story.  The.  com- 
pany owns  some  1,770,000  acres  of  land  granted  as 
inducement  to  British  capitalists  to  construct  the  line, 
but  under  present  conditions  it  is  impossible  to  turn 
this  asset  to  account,  and  the  land  taxes  are  a  crush- 
ing burden.  Moreover,  the  State  Government  com- 
mitted a  grave  wrong  to  the  company  in  constructing 
the  parallel  line  from  Wongan  Hills,  and  there  is  a 
strong  moral  claim  for  compensation  which,  however, 
has  not  so  far  been  entertained.  After  providing  for 
debenture  interest  there  is  a  debit  in  respect  of  last 
year'.s  working  of  ;^2 1,760,  and  the  total  debit  balance 
is  now  ^43,460,  and  there  is  no  immediate  prospect  of 
redeeming  the  outstanding  reversionary  certificates  for 
;^8oo,ooo,  or  of  paying  any  dividend  on  the  ;^6oo,ooo 
share  capital.  It  is  not  a  creditable  state  of  affairs  to 
the  Westralian  Government,  and  it  will  be  remembered 
when  the  colony  requires  more  capital  for  its  develop- 
ment. 


In  the  year  to  December  31  the  gross  revenue  of  the 
County  of  London  Electric  Supply  Co.,  Ltd.,  amounted 
to  ;^38o,ooo,  an  increase  of  ^^37,000,  but  the  expendi- 
ture rose  ;^40,ooo  to  £226,000.  Fuel  cost  ;^i8,ooo 
more,  and  wages  and  other  charges  also  were  higher. 
The  amount  brought  in  was  larger,  and  the  balance 
available  is  practically  the  same  at  ;^i7i,87o,  but  in- 
terest requires  a  little  more,  and  ^^50,000  against 
;^45,ooo  is  set  aside  for  depreciation.  Consequently, 
after  repeating  the  dividend  of  7  per  cent,  (of  which 
2i  per  cent,  was  paid  as  interim),  the  balance  forward 
is  reduced  by  ;^3,3oo  to  ;^i5,ooo.  Total  units  sold  in- 
creased 2,565,000  to  37.595>ooo,  and  the  number  of 
consumers  is  1,000  larger  at  28,000.  In  the  circum- 
stances the  directors  are  justified  in  regarding  the 
results  as  satisfactory. 


Conditions  were  evidently  more  favourable  in  the 
meat  trade  last  year  than  in  1916,  and  a  welcome  im- 
provement is  shown  in  the  results  of  Eastmans,  Ltd.. 
for  the  later  period.  In  1916  trading  profits  fell  off 
^6,500,  but  last  year  they  increased  ;£'36,50o  to 
£81,240,  and  after  .setting  aside  double  the  amount  for 
depreciation  at  ;^io,ooo,  and  ;^i 8,400  against  ;^9,720 
for  mcome-tax,  the  nett  profit  is  ;^23,ooo  higher  at 
£50,440.  This  allows  of  the  payment  of  5  per  cent., 
against  nil,  on  the  ordinary  shares,  which  absorbs 
£23,000,  and  as  a  smaller  amount  was  brought  in  the 
carry  forward  is  ^^3,000  lower  at  £"8, 100.  Nothing 
m  the  balance-sheet  calls  for  remark  except  that  stocks 
jire  ;^43,ooo  down  at  £41,650,  while  cash  balances 
have  increased  £77,000  to  ;^i68,400. 


As  was  foreshadowed  in  the  last  report,  the  busi- 
ness of  the  Law  Land  Co.,  Ltd.,  showed  a  substantial 
improvement  during  1917,  rents,  &c.,  received  being 
£10,000  higher  at  £1147,740.  Nett  profits  advanced 
£5,600  to  £31,870,  and  with  ;^3,7oo  more  brought 
in,  the  amount  available  is  ;^9,3oo  larger  at  £'38,800. 
The  directors,  however,  consider  it  prudent  to  retain 
the  dividend  at  4  per  cent.,  to  which  it  was  reduced 
from  6  per  cent,  last  year,  and  to  add  £5,000  to  re- 
serve, leaving  £4,300  more  at  £'11,300  to  be  carried 
forward.  During  the  year  mortgages  were  reduced 
by  £17,000  to  £610,000,  and  the  reserve  funds  now 
stand  at  ;^i55,ooo,  while  the  leaseholds  redemption  ac- 
count has  been  increased  by  £4,500  to  £'58,660. 


Many  companies  which  have  been  most  prudently 
managed  in  the  past,  and  have  therefore  accumulated 
very  substantial  reserves,  find  it  desirable  to  bring 
their  capital  accounts  more  into  harmony  with  the 
amount  actually  expended  on  the  business  than  the 
share  issue  indicates.  Probably  questions  with  regard 
to  income-tax  and  excess  profits  duty  have  a  good 
deal  to  do  with  what  might  be  regarded  in  normal 
times  as  a  mere  watering  down  of  capital.  Each  case 
must  be  judged  on  it.s  merits,  and  we  have  no  fault  to 
find  with  the  decision  of  Callender's  Cable  and  Con- 
struction Co.,  Ltd.,  to  give  one  new  ordinary  share 
lor  every  share  at  present  held.  The  surplus  accumu- 
lated, quite  apart  from  the  reserve,  exceeds  the  total 
issued  ordinary  share  capital,  owing  to  the  exceedingly 
prudent  policy  of  the  directors  in  the  past,  and  it  is 
right  that  the  present  holders  should  participate  in  the 
benefits  before  the  position  becomes  unwieldy.  It  is 
proposed  to  increase  the  capital  from  £500,000  to 
£700,000,  and  after  duplicating  the  £175,000  ordinary 
shares  £150,000  will  be  left  in  reserve  for  future  issue 
if  required.  Both  the  preference  and  ordinary  shares 
will  be  subdivided  from  £5  to  £"i  each.  treasury 
sanction  has  to  be  obtained,  but  it  is  right  that  the 
directors'    suggestions    should    be    announced    even    if 


DO  NOT   ATTEMPT  TO 

ENTER  A  CROWDED  TRAIN 

Most  seconds  are  lost  by  passengers 
trying  to  force  their  way  into  a  full 
train.  The  more  trains,  the  more 
seats.  The  shorter  the  interval 
between  trains,  the  more  trains.  The 
shorter  the  stop  at  the  station,  the 
shorter  the  interval  between  trains. 


yeeiEsHSGSD' 


Electric  Railway  House,  Broadway,  Westminster,  S.W.I. 


270 


Xlbe  5nve8tote'  IReview. 


March  16,  1918. 


delay  has  to  be  faced  before  they  can  be  carried  into 
effect. 


Although  its  operations  were  again  interfered  with 
by  strikes,  the  Arizona  Copper  Co.  did  not  suffer  so 
much  from  labour  troubles  in  the  year  ended  Septem- 
ber 30  as  in  the  preceding  year.  Moreover,  the  com- 
pany had  the  advantage  of  working  the  extensions 
recently  made  to  the  reduction  plant.  As  a  result  the 
production  of  Bessemer  copper  expanded  appreciably, 
being  21,240  tons  against  17,050  tons.  The  gross 
profit  was  £2,02S,€>oo,  against  ;^"i, 025,800,  but  taxes 
in  the  United  States  absorbed  ;^368,200,  agamst  only 
;^53,90o  last  year.  A  sum  of  ;^50,ooo,  against 
;£;i20,oco,  is  allocated  to  capital  outlay  reserve,  and 
^"225,000  is  carried  to  reserve  for  contingent  liabili- 
ties, in  view  of  the  existence  of  which  a  large  balance 
was  carried  forward  last  year,  and  subsequently  trans- 
ferred in  its  entirety  to  this  reserve.  Last  year's 
allocation,  with  sundry  other  items,  brought  the  total 
up  to  ;^7i6,6oo,  of  which  ;^i03,ooo  has  since  been 
paid  away.  The  balance  of  the  company's  debentures 
are  to  be  paid  off  on  March  25,  from  which  date  the 
concern  will  be  entirely  free  of  debenture  debt.  There 
still  remains  to  be  replaced  about  ;^ioo,ooo,  which 
has  been  expended  out  of  working  capital  on  new  in- 
stallations. After  providing  ;^i 37,805  for  the  deben- 
ture redemption,  and  payment  of  preferential  divi- 
dends, there  remains  a  surplus  of  ;^3i7,7i7.  A  final 
dividend  of  is.  gd.  per  share  is  to  be  paid  on  March  20, 
making  4s.  per  share  for  the  year,  the  same  as  for 
1915-16,  both  free  of  tax,  leaving  £13,738  to  be 
carried  forward.  Development  work  during  the  year 
was  again  attended  by  very  satisfactory  results. 


"Stunts"  in  Borrowing. 

Is  there  not  a  little  too  much  simulation  about  all 
this  war-bond  campaigning?  There  is  something  in 
it,  above  all  something  in  the  method  by  which  public 
enthusiasm  is  stimulated,  which  jars  on  the  mind.  It 
is  not  a  downright,  straightforward  style  which  has 
been  selected  to  promote  the  sale  of  War  Bonds,  and 
notwithstanding  the  high  pressure,  the  result  is  dis- 
appointing. London  alone  has  provided  ;^'75,ooo,ooo, 
we  are  told  with  an  air  of  exultation,  but  the  people 
in  charge  of  the  "  stunt  "  put  their  goal  at 
;£'ioo,ooo,oc)o  before  the  Tank  and  tout  collecting 
began.  Over  the  whole  kingdom  Mr.  Law  says  the 
product  has  been  ;^i38,87o,24o.  Even  had  London 
provided  ;^20o,ooo,ooo,  it  would  have  been  but  a  trifle 
compared  with  our  ever-increasing  necessities,  but  it 
did  not ;  it  has  falsified  the  boomsters,  and  their  shouts 
of  "  Glory  be,  we've  done  it !  "  tempt  the  scoffer. 

The  real  truth  is  that  this  great  "Tank  Bank" 
mode  of  raising  money  has  not  proved  a  success,  and 
the  Government  will  have  to  fall  upon  some  more  con- 
tinuously prolific  method  of  drawing  the  money  into 
the  Exchequer,  for  money  is  still  being  spent  in  all 
manner  of  profitless  ways  by  those  who  receive  it. 
And  the  worst  of  it  is  that  by  following  the  course 
it  does,  the  Government  is  putting  obstructions  in  the 
way  of  the  floating  of  another  large  loan,  even  if  it 
were  possible  to  put  it  on  the  market  just  now,  which 
is  doubtful.  Mr.  Bonar  Law  apparently  has  never 
grasped  the  fact  that  when  this  war  burst  upon  the 
country  its  banking  capital  was  all  employed  in  sus- 
taining and  developing  the  industries  and  arts  of  peace, 
and  in  the  conduct  of  our  trade,  of  the  world's  trade. 
To  finance  the  vast  business,  and,  at  the  same  time,  to 
find  the  thousands  of  millions  additional  required  to 
carry  the  war  forced  upon  us  to  a  successful  con- 
clusion, has  put  a  strain  upon  banking  and  other 
resources  of.  the  country  unparalleled  in  the  world's 
history.  The  nation,  by  help  of  its  bankers,  its  insur- 
ance offices,  its  great  hosts  of  wealthy  manufacturers 
and  merchants,  has  accomplished  marvels,  but  it  can- 
not go  on  for  ever  to  work  miracles.  The  war  has 
now  entered  upon  a  stage  when  exhaustion  looms  in 


the  background,  a  stage  which  therefore  demands  on 
the  part  of  those  who  wage  it  the  utmost  economy,  and 
also  well-nigh  superhuman  ingenuity  in  devising 
methods  whereby  a  considerable  portion  of  the  credit 
wealth  brought  into  existence  by  our  banks  in  helping 
to  sustain  the  fight,  can  be  drawn  back  again  into 
the  Exchequer,  and,  as  it  were,  re-used.  Hitherto 
millions  a  day  of  this  wealth  have  been  allowed  to  run 
to  waste.  .  , 

Probably,  nav,  of  a  surety,  the  enemy  is  in  a  far 
worse  plight  than  we  are  for  all  his  swagger  and 
parade  of  unlimited  resources.  For  nearly  four  years 
his  industries  have  been  stopped,  his  foreign  trade 
almost  entirely  destroyed,  and  all  the  energies  of  the 
nation  devoted  to  the  production  of  instruments  ot 
slaughter,  which  consume  wealth  and  destroy  the  pro- 
ducers ;  therefore  his  power  to  endure  must  be  nearing 
the  limit  possible  for  human  nature  to  bear.  But  that 
can  be  no  consolation  to  us  unless  we  and  our  Alhes  so 
husband  what  is  left  of  our  resources  as  to  enable  us 
to  stand  firm  until  the  foe  is  finally  defeated. 

These  are  considerations  which  the  Chancellor  of  the 
Exchequer  and  his  colleagues  will  do  well  to  ponder 
over  between  now  and  Budget  day.  Has  Mr.  Law,  for 
example,  grasped  as  yet  the  reason  why  he  has  again 
had  to  contradict  rumours  ever  and  anon  put  in  cir- 
culation about  repudiation  of  the  National  Debt  and  the 
confiscation  of  investments?  These  rumours  crop  up 
ever  and  again,  and  silly  rumours  though  they  be,  they 
are  none  the  less  the  product  of  deeds  done  and  words 
uttered  in  high  places.  The  already  mentioned  methods 
by  which  National  War  Bond  sales  have  been  promoted, 
the  language  of  the  advertisements  everywhere  dis- 
played, the  prizes  offered  to  subscribers  in  niockery 
of  the  law  and  official  prudery,  all  the  parade  of  a 
travelling  circus  show,  have  helped  to  generate  fears  in 
the  minds  of  the  quiet  citizen,  who,  after  all,  counts 
most  in  the  long  run ;  fears  lest  we  should  blunder  into 
a  financial  position  that  might  bring  these  worse  con- 
tingencies before  us,  whether  we  like  it  or  no.  Another 
influence  most  disturbing  is  Mr.  Law's  own  words 
about  "  conscription  of  capital. "  They  were  imprudent 
words,  not  meant  to  be  made  public,  and  for  that  ver\ 
reason,  once  disclosed,  they  have  had  all  the  greater 
influence  in  upsetting  the  equanimity  of  the  people  on 
whom  we  most  depend.  Taken  in  connection  with  the 
obvious  fact  that  all  the  furore  of  advertising,  of  lank 
parades  and  oratory  is  not  bringing  in  one-fifth  ot  the 
monev  required  to  sustain  the  fight  with  success  to  the 
erd  thev  engender  doubt  and  fears.  The  public  mind 
remains' imbued  with  a  dread  that  the  Government  s 
mismanagement  of  our  financial  resources  may  drive 
it  to  attack  property  and  confiscate  wealth,  one  may 
say,  in  spite  of  itself.  The  reassurance,  therefore,  that 
the  nation  wants  is  the  reassurance  of  common 
sense  economy  in  spending,  and  equally  vigor- 
ous courage  and  far-seeing  sagacity  '."  P''»^'°'"S- 
the  means  from  available  sources  with  which  to  fill  th^ 
Treasury.  Camouflage  may  be  excellent  in  war,  but  it 
is  fatal  in  finance — always. 


The  Bank  Amalgamations. 

We  are  glad  to  note  that  the  Government  has  not 
ventured  to  obstmict  the  fusion  of  the  National  Pro- 
vincial Bank  of  England  with  die  Union  of  London 
and  Smiths,  or  that  of  the  London  County  and  West- 
minster with  Parr's.  Both  amalgamations  have  been 
allowed  to  go  through,  and  both  were  this  week  ac- 
cepted by  the  respective  bodies  of  shareholders  at  the 
extraordinary  meetings  calle'd  for  the  purpose.  Be- 
vond  question,  the  fusions  are  wise  and  opportune, 
ixit  it  was  qiijite  natural  that  miany  shareholders  and 
customers  should  fear  that  harm  might  arise  in  some 
vague  and  undefinable  way.  "  Banks  getting  too  big 
would  become  tyrants,"  expresses  the  thought,  but 
there  seems  to  be  no  danger  of  that.  No  douht  if  such 
amalgamations  were  carried  much  further — if,  say,  the 
two  now  all  cx>mpleted  except  for  the  confirmatory 
meetings  to  be  held  within   a  fortnight — were    again 


March  i6,  1918. 


Zbc  Jnveetora'  TReview* 


271 


to  amalgamate,  or  some  other  banks,  like  Lloyds  and 
the  Lx)ndon  City  and  Midland,  to  unite  with  one  of 
these,  we  might  be  within  sighit  of  the  danger  alluded 
to  by  Mr.  Walter  Leaf  at  .the  London  County  and 
Westminster  meeting,  when  all  our  banks  would  be 
consolidated  into  a  huge  overpowering  State  bank, 
with  whom  every  adventure  would  have  to  be  negoti- 
ated, and  by  whom  all  enter;prise  would  be  controlled 
and  regulated.  But  we  cannot  imagine  the  English 
business  mind  submitting  to  any  such  control.  After 
all,  we  are  not  brought  up  as  the  Prussian."?  have 
brought  up  the  Germans,  and  value  our  individuality 
in  business  as  in  other  departments  of  life.  And,  as 
we  stand  now,  all  sihould  be  for  the  good  in  the  time 
to  come,  when  escape  from  the  common  peril  will  have 
drawn  the  civilised  peoples  together  to  work  in  har- 
mony laind  to  assist  each  other  in  overcoming  the 
obs.tacles  placed  in  the  way  of  development  by  the  war. 
The  chairman  of  the  London  County  and  West- 
mins.ter  dwelt  with  emphasis  upon  the  preparations 
the  German  banks  are  making  for  competition  with 
our  banks  after  the  war,  and  declared  that  we  shall 
be  faced  with  something  like  "  a  money  trust  "  in 
■Germany  in  the  hands  of  "  the  three  big  '  D'lS,'  "  the 
Deutsche,  the  Dresdner,  and  the  Disconto-Gesellschaft 
banks.  He  is,  doubtiless,  perfectly  right  as  to  the 
preparations  these  are  making  for  waging  an  economic 
war  to  the  death.  They  have  all  increased  their  capital 
and  otherwise  made  themselves  ready  for  a  great  out- 
burst of  aggressive  campaign  in  competition  for  the 
world's  businesis  when  peace  comes.  But  we  need  not 
insist  to  the  point  of  dread  upon  that  danger  as  a  good 
reason  for  amalgamations  among  our  banks,  because, 
for  one  thing,  the  German  banks,  pile  up  capital  as 
they  may,  will  possess  neither  the  me-ans  nor  the  credit 
they  enjoyed  before  they  helped  to  plunge  the  world 
into  a  ruinous  war,  and,  for  another,  everything 
German  will  be  so  loathed  all  over  the  w^orld  that  the 
warring  German  banks  will  spread  their  lures  in  vain 
in  the  eyes  of  civilised  peoples.  Nevertheless,  the 
stronger  our  banks  are,  the  more  harmoniously  they 
work  together,  .the  more  loyal  their  competition,  even 
when  keen,  the  better  able  will  they  be  to  sustain, 
and  often  to  direct,  the  business  activities  and  enter- 
prise which  will  be  demanded  of  us  if  we  are  to  hold 
our  place  in  the  world  and  increase  our  trade  after  the 
peace. 

Perhaps  the  most  retrospectively  instructive,  as 
certainly  the  most  moving,  address  of  the  four  de- 
livered at  these  special  meetings,  was  that  of  Sir  Felix 
Schuster,  who  has  so  long  been  at  the  head  of  Union 
of  London  and  Smiths  Bank.  He,  like  other  speakers, 
dwelt  upon  the  advantages  his  bank's  absorption  by 
the  fine  old  National  Provincial  will  bring,  a  bank 
reared  to  its  present  magnitude  by  cultivating  the 
*'  small  customer,"  fears  about  whose  lot  under  the  new 
arrangement  Mr.  Walter  Leaf  did  well  to  dissipate, 
pointing  out  that  the  big  bank  draws  its  substance 
from  the  small  customer  as  surely  and  abundantly  as 
from  the  big.  It  is  indeed  in  the  multitude  of  small 
depositors  that  lies  the  strength  of  all  banks.  But  Sir 
Felix  turned  back  also  to  the  past,  and  sketched  the 
history  and  growth  of  the  National  Provincial,  and  of 
his  own  bank,  and  wound  up  with  some  personal  ob- 
servations which  were  gracefully  phrased,  and  touch- 
ing in  their  cordial  recognition  of  the  help  colleagues 
and  staff  have  given  him.  His  speech  was  in'  the 
nature  of  a  valedictory  address,  in  fact,  and  no  one 
need  be  surprised  at  the  keen  feeling  manifested  be- 
neath the  quiet  language  used.  During  68  years  a 
member  of  his  firm,  with  but  one  short  break,  had  been 
a  member  of  the  Union  Bank  board.  Thirty  years  ago 
part  of  the  business  of  his  firm  was  taken  over  by  the 

"Union  Bank,  and  he  became  a  director.  His  only  son, 
sow  at  the  front  in  Italy,  is  a  local  director,  and  but 

Por  the  war  would  probably  have  been  by  this  time  a 
member  of  the  bank's  central  board.  Customers  and 
shareholders  alike  will  hope  that  Sir  Felix,  although 
ceasing  to  be  "governor,"  may  be  able,  as  he  pro- 
mises, to  continue  to  give  his  attention  to  the  business 


of  the  bank,  for  some  years  at  any  rate,  with  the 
assiduity  and  prudence  he  has  so  long  displayed.  In 
the  years  when  this  writer  used  to  go  into  bank 
parlours  to  talk  of  current  business  no  one  was  more 
courteous  in  his  welcome  to  him,  or  more  instructive 
to  converse  with,  than  Sir  Felix  Schuster.  And  we 
can  only  wish  that  both  the  powerful  banks  now  con- 
stituted may  continue  to  flourish  and  to  develop  in  the 
wider  field  now  opening  before  them,  guided  by  the 
same  skill  and  uprightness  which  has  distinguished 
each  of  the  four  in  their  separate  careers. 


Bolshevism    in    the    Home. 

No  person  may  consume  in  any  week  an  amount  of 
rationed  food  in  excess  of  the  ration. 

This  is  the  central  clause  of  a  new  Ration  Order 
just  issued  for  London  and  the  Home  Counties  from  the 
Rhondda  Ration  Order  manufactory.  Interpreted 
literally,  it  appears  to  mean  that  even  the  pooling  of 
coupons  by  a  single  family,  or  rather  of  the  products 
of  those  coupons,  is  illegal,  because  it  is  clear  that  one 
member  of  the  family  with  a  small  appetite  might  eat 
less  than  the  ration,  thereby  enabling  another  member 
with  a  larger  appetite  to  commit  the  heinous  crime  of 
consuming  an  ounce  or  two  more  than  the  ration.  We 
do  not  suppose  there  is  any  intention  of  interpreting 
the  clause  in  this  strict  sense — ^not  because  we  attribute 
any  glimmerings  of  common  sense  to  the  Food 
Ministry,  which'  is  plainly  intoxicated  by  the  possession 
of  uncontrolled  power — but  simply  because,  short  of 
placing  an  official  spy  in  every  household,  its  enforce- 
ment would  be  impracticable. 

But  it  is  quite  evident  that  official  spying  is  to  be 
the  order  of  the  day.  The  main  object  of  the  new 
Order  is,  we  suppose,  to  prevent  people  getting  supplies 
from  the  country.  It  is  quite  clear  that  such  supplies 
can  only  be  obtained  from  non-rationed  districts ;  as 
rationing  is  shortly  to  be  extended  all  over  the  country, 
so  that  everywhere  purveyors  and  retailers  will  be 
obliged  to  obtain  coupons  for  what  they  sell,  this  prac- 
tice, on  anything  like  a  regular  scale,  must  automa- 
tically cease.  In  the  meantime,  if  non-rationed  dis- 
tricts have  various  foods  to  spare,  it  is  difficult  to  see 
why  people  in  London  should  not  be  allowed  to  obtain 
them.  Obviously  such  supplies  would  tend  to  reduce 
the  pressure  on  the  regular  markets. 

But  the  cant  cry  will  be  immediately  raised,  "How 
can  you  permit  anyone  to  get  private  supplies?  The 
rich  would  then  get  more  than  the  poor. ' ' 

In  our  view  one  of  the  most  disturbing  features  of 
the  present  political  position  at  home  is  the  absolute 
refusal  of  politicians  and  officials  to  speak  the  truth  to 
the  working  classes.  It  is  noteworthy,  too,  that  this 
inability  is  found  equally  among  the  Labour  men  who 
have  risen  from  the  ranks  as  well  as  among  the  ordi- 
nary party  politicians.  We  do  not  ourselves  believe 
that  there  should  be  any  such  difficulty,  or  that  the 
working  classes  deserve  to  be  so  insultingly  treated  by 
anyone.  But  in  reading  the  speeches — ^and  we  have 
read  many — of  Lord  Rhondda,  Mr.  Clynes,  a  Labour 
man,  and  Sir  A.  Yapp  to  all  sorts  of  labour  gatherings 
we  do  not  recollect  a  single  honest  effort  to  explain 
that  the  nation  is  not  divided  into  rich  and  poor,  but 
that  the  bulk  of  the  nation  consists  of  the  industrial 
classes,  for  the  most  part  fairly  well  paid.  Always  it 
has  been  insinuated  that  rationing  was  to  prevent  the 
rich  getting  more  than  the  poor.  Never  has  it  been 
pointed  out  that,  though  the  rich  may  be  extravagant 
— and  we  are  far  from  defending  that  in  the  present 
crisis — yet  as  far  as  the  staple  foods  are  concerned 
their  consumption  is  small,  and,  even  if  cut  off  alto- 
gether, would  make  little  practical  difference  to  the 
national  supplies. 

The  futility  and  inanity  of  Sir  A.  Yapp's  economy 
campaign  has  been  made  painfully  clear ;  but  this 
raises  the  question  whether  anyone  at  the  Food 
Minstry,  who  was  recommending  a  voluntary  ration  of 
2  lbs.  uncooked  meat  per  week,  ever  realised  that  a 
working  man  will  normally  consume  at  least  J  lb.  of 


272 


Z\K  Jnveetots'  IRevtew. 


March  16,  1918. 


cooked  meat  a  day,  while  heavy  ^'"[k^:^' •["'^  "'f  [^• 
riveters  foundrymen,  and  so  on,  will  easily  eat  i  id. 
of  cooked  meat  'a  da^  No  doubt  these  workers  have 
a  superstitious  faith  in  the  v.rtues  of  meat,  b"t  their 
work  is  excessively  heavy,  and  ihey  need  flinty  of  sus 
Tainine  food.  Did  Sir  A.  Yapp  suppose  for  a  moment 
hat  tLl:  men,  with  good  wages  in  their  P-^ets  -ere 
going  hungry  to  work  as  long  as  there  was  meat  to 

^TLd  Rhondda,  we  are  assured,  is  disturbed  by  the 
knowledge  that  under  his  rationing  scheme  these  heavy 
workers  will  certainly  not  be  adequately  fed,  and  hopes, 
Ts  soon  Ts  supplies  allow,  to  increase  their  par  icular 
nttion      This  wUl  add  a  new  complication  to  an  already 
h  ghly  complicated  scheme,   but  in  the  meantime  the 
need  could  undoubtedly  be  lessened  by  leaving  unrationed 
certain  meats  like  poultry  and  game.     It  is  dear    hat 
the  coupon  system  must  always  be  very  ""^a  '^fa^«'7 
when  applied  to  these  commodities ;  indeed,  at  the  pre- 
sent moment  it  not  only  looks  as  if  a  good  deal  o 
food  would  be  wasted,  but  as  if  the  whole  industry  of 
supplying  poultry  might  be  seriously  injured,  which  is 
the  last  thing  the  country  desires.     But  to  drop  poultry 
out  of  the  scheme— No,  no,  the  equality  between  rich 
and   poor  would  be  destroyed!     The   rich   man,    per- 
sonified   as    a   portly    person    with    a    corporation     a 
heavy  gold  watch  chain,  and  a  habit  of  talking  about 
the  "  lower  classes,"  and  living  in  Grosvenor  Square, 
might  gorge  himself  on  chicken  !    So  the  riveter  from 
the  shipbuilding  yards,  desperately  hungry  after  eight 
hours'  work   in   the  bitter  air  on   a   gantry,  niust  go 
home  with  plenty  of  money  in  his  pockets  to  his  three 
ounces  of  meat  and  the  all-satisfying  knowledge  that 
if  he   is   not   allowed   to  buy   himself   food,   neither   is 
the  man  in  Grosvenor  Square  !    We  doubt  if  this  know- 
ledge   will    prove    as    permanently    soothing    as    Lord 
Rhondda  appears  to  think  ! 

While  reasonable  precautions  should  certainly  be 
taken  against  systematic  disregard  of  the  rationing 
regulatiorls  by  the  well-off,  whether  in  Grosvenor 
Square  or  in  munition  factories— we  shall  be  interested 
to  see  whether  prosecutions  are  ever  initiated  against 
the  latter  class,  or  whether  the  equalitarian  theory  will 
not  be  abandoned  at  this  point— we  believe  that  so  far 
from  excessive  strictness  rendering  the  system  more 
popular  or  more  workable,  it  will  have  the  contrary 
effect.  Under  this  new  order  it  would  appear  that  no 
exchanges  of  rations  can  be  effected ;  the  person  who 
cannot  eat  margarine  cannot  pass  his  share  on  to  a 
neighbour  who  may  have  children  to  whom  a  small 
extra  supply  would  be  invaluable ;  childless  households 
cannot  assist  friends  with  their  surplus  sugar ;  country 
people  may  not  help  along  invalids  in  town  with  a 
little  gift  of  butter,  or  a  spring  chicken  to  eke  out 
rations  that  may  be  insufficient  or  unsuitable.  Though 
friendly  acts  of  this  kind  would  certainly  not  be  limited 
to  the  rich,  but  would  occur  in  all  classes.  No;  the 
Bolshevik  theory  holds  the  field. 

It  has  been  stated  that  Lord  Rhondda  is  coming  to 
Parliament  for  further  powers.  We  could  not  imagine 
why.  Every  notice  and  every  form  sent  out  either  by 
the  central  or  the  local  committees  breathes,  if  not  fire 
and  slaughter,  at  any  rate  fine  and  imprisonment ; 
;^ioo  fine — six  months'  imprisonment — or  both! 
Surely  enough  to  frighten  anyone  into  accuracy  and 
honesty,  if  threats  could  do  the  business  !  But  we  are 
beginning  to  understand  now.  Certainly  nothing  short 
of  "something  lingering  with  boiling  oil  in  it"  will 
force  the  English  people  to  submit  to  such  an  inquisi- 
torial tyranny  as  Lord  Rhondda  is  attempting  to  estab- 
lish. Even  If  the  prosecutions  are  entirely  confined  to 
the  much-maligned  "  classes,"  we  doubt  if  the  plan 
will  succeed.  There  is  an  instinctive  sense  of  justice 
and  of  fair  play,  joined  with  a  strong  dislike  of  vin- 
dictiveness,  in  the  English  people,  and  we  believe 
these  qualities  ■will  make  themselves  felt  in  the  end  ! 


[The  continuation  of  the  series  of  articles  on  Income 
tax  is  unavoidably  held  over.] 


By-the-Way  War  Notes. 

It  is  not  patented,  nor  is  it  the  peculiar  possession  of 
the  Harmsworth  family,  but  it  is   most  constan  ly  in 
use  by  them,   so  that   we  may  call  it  their  exclusux 
method,  warranted  to  di.scourage  the  nation.     Confid- 
ing simplicity   is  the  characteristic  it  demands  of  us 
W-henever   anything   happens  calculated   to  alarm     he 
minds  of   the  least  instructed  or  reflective  among  tht 
.Miople  the  Harmsworth  newspapers  systematically  put 
the  blackest  interpretation  upon  it.    If  the  HohenzoUern 
Kaiser,    regardless     of     promises     ^''^t'"'  .  ^[  ..^"^ 
"  damned  nonsense  "  of  that  kind,  declares  that      the 
victory  in  the  East  is  among  the  greatest  successes  in 
history,"  and  that  it  "  secures  the  Baltic  Provinces  to 
German  nationality  for  all  time  to  come,      the  Harms- 
worth  scribes  fall  down  and  worship,   yelling.       It  is 
true,  we  are  undone  !  "     And  when,  having  succeeded 
in  demoralising  the  Russian  armies,  and  inducing  them 
to  throw  down  their  arms,  bands  of  Austro-German 
troops  are  able  to  march  into  Russia,   to  go  by  train 
and  motor-lorry  in  an  excursion  as  far  as  Odessa,  or 
to  "  skate"  towards  Petrograd,  the  same  gloomy  chorus 
hails  these  things  as  marks  of  German  invincible  might. 
The  German  power  is  so  great,  so  overwhelming,  they 
say  or  insinuate,  that  it  is  now  able  to  stretch  its  influ- 
ence and  control  all  over  Russia,  and  all  over  Caucasia 
and  Armenia,    and   it  will  soon  permeate   all  through 
Persia   and   Afghanistan,    capturing    the    oil    regions 
especially  the  British  fields  in  Persia  [tip  implied,   sell 
all  your 'Anglo-Persian  and  Burmah  oil  shares],  and  so 
onward    to    absorb    India,   already    preparing   for  the 
change  of  masters.     There  is  never  any  limit  to  the 
glorious  success  for  the  Germans  and  their  Picroc^hole 
Kaiser,  which  these  unhappy  caterers  for  the  ignorant 
see  in  the  events  as  they  pass. 

Is  there  any  real  foundation  for  this  attitude  of  per- 
sistent gloom' inciting  to  terror?  None.  The  fate  of 
the  two  now  bankrupt  Central  Empires  will  be  decided 
on  the  West,  and  all  that  happens  elsewhere  is  mere 
scene  painting,  braggadocio  of  the  type  common  to  all 
wild  beasts,  the  swagger  of  the  bully  at  bay,  and  con- 
scious of  imminent  defeat.  What,  for  example,  is 
the  true  meaning  of  the  persistent  small  assaults  upon 
the  French,  British,  and  Belgian  fronts  in  the  West? 
They  involve  a  great  waste  of  German  gun-fodder 
bipeds,  and  of  ammunition,  and  they  lead  to  nothing 
whatever  of  the  least  value  to  the  enemy.  The  effect 
of  the  never-ending  repulses  and  slau_ghter  must  indeed 
he  to  increase  the  demoralisation  of  the  enemy's  armies, 
already  much  deteriorated,  and  of  a  lower  quality  than 
those  perfect  savages  of  war  with  which  the  first  18 
months  or  two  years  of  the  conflict  were  conducted.  To 
persist  in  these  wasteful  and  futile  attacks,  therefore, 
seems  to  us  to  reveal  growing  impotence  rather  than 
the  masterful  strength  of  an  enemy  even  at  this  late 
day  conscious  of  his  power  to  win  ultimate  victory. 

The  same  inference  may  be  drawn  from  the  air  raids 
on  London  and  Paris,  and  various  other  places.  They 
are  displays  of  wanton  spite,  inhumanly  brutal,  but 
the  Prussians  say  that  the  atrocities  are  perpetrated,  of 
set  policy,  "  in  retaliation,"  and  with  the  deliberate 
purpose  of  cowing  us  into  making  a  peace,  their  peace. 
They  have  exactly  the  contrary  effect,  and  the  very 
confession  that  this  is  the  aim  of  the  German  war- 
chiefs  implies  doubt  in  their  minds  as  to  the  power  of 
their  armies  to  win  through.  These  exhibitions  of 
spiteful  rage  on  land  and  sea,  and  in  the  air,  are  the 
desperate  efforts  of  despairing  tyrants  to  escape  from 
their  impending  doom.  What,  therefore,  is  demanded 
of  us  is  steadfastness  in  resistance  and  endurance  until 
the  misdeeds  of  our  foes  themselves  bring  them  to 
;ruin. 

And  surelv  we  have  emphatic  reason  for  our  con- 
fidence and  serenity  in  the  fact  that,  as  Mr.  Hilaire 
Belloc  pointed  out  with  his  usual  force  in  last  week's 
Land  and  Water,  we  have  now  mastered  the  enemy  in 
all  his  devices.  At  the  beginning,  thanks  to  the  devo- 
tion of  the  entire  faculties  of  the  slaves  he  moulded 
to  his  will,  the  Prussian  had  the  advantage  over  the 


March  i5,  1918. 


Zbc  Jnveetors'  IRevtew. 


273 


I 


Allies  in  men,  in  artillery,  in  machine  guns,  in  aircraft 
of  all  kinds,  in  the  use  of  poison  gas,  and  in  many  other 
instruments.  Bit  by  bit  in  the  past  3*  years  we  have 
overtaken  and  surpassed  him,  so  that  now  we  are  his 
superiors  in  men — for  is  not  the  American  Army  now 
mustering  fast? — in  artillery,  in  machine  guns,  in 
poison,  in  tanks,  and  in  everything  necessary  to  hold 
our  own  with  grim  resolution  until  the  beaten  foe  gives 
up  the  struggle.  Even  on  the  sea  the  day  of  his  master- 
ing is  near,  so  far  as  fighting  the  submarine  goes,  and 
long  ago  we  .swept  the  ocean  clear  of  his  merchantmen. 

In  all  the  scaremongering  of  that  portion  of  the  Press 
beloved  and  trusted  by  our  Prime  Minister  there  is 
rarely  anything  said  about  the  position  of  Germany  in 
the  matter  of  food.  Yet  it  may  well  prove  decisive*  in 
the  issue.  The  facts  which  leak  through  all  tend  to 
one  conclusion,  that  the  two  empires  are  near  enough 
starvation  now.  Look  at  what  Herr  von  Brettreich, 
the  Bavarian  Minister  of  the  Interior,  has  been  saying. 
"  Last  year's  harvest  throughout  Germany  was  so 
scanty  that  the  strictest  economy  must  be  exercised 
in  order  that  supplies  might  last  out.  The  present 
bread  rations  might  be  maintained  and  the  meat  rations 
also,  but  only  to  the  end  of  April,  and  afterwards  it 
Vvas  questionable  whether  they  could  be,"  for  the  army 
has  to  be  first  provided.  Here  we  have  the  explanation 
of  the  feverish  haste  with  which  the  Prussians  are 
reaching  out  to  the  Black  Sea  and  laying  hold  of 
Odessa.  It  is  a  "  grain  hunt,"  not  a  campaign  in  a 
military  sense — and  they  will  be  disappointed.  Some 
grain  may  be  found  in  Odessa,  but  the  great  stores 
usuall}'  held  there  are  probably  there  no  longer,  and 
much  of  such  grain  as  may  be  laid  hold  of  and  sent 
westward  from  any  part  of  Ukrainia  will  have  to  be 
snatched  from  the  mouths  of  the  native  population. 
So  the  first  consequence  of  German  ruthlessness  in 
stealing  the  people's  bread  is  likely  enough  to  be  a 
reawakening  of  the  Russian  spirit  of  race  independence 
and  such  a  reaction  against  the  enemy  as  will  soon  end 
"  for  ever  "  William  Hohenzollern's  dream  of  universal 
domination  in  that  quarter. 

But  if  the  grain  is  not  forthcoming,  what  prospect 
is  before  the  Germans  and  the  Austrians  if  not  that  of 
famine?  If  last  year's  harvest  was  bad,  is  this  year's 
likely  to  be  better  with  the  land  deprived  of  its 
cultivators,  of  manures,  and  probably,  in  many 
districts,  of  the  necessary  quantity  of  seed?  Food  is 
said  to  be  so  scarce  in  Vienna  now  that  the  bread  there 
is  made  of  maize  meal  of  a  colour  like  yellow  ochre,  and 
is  rather  "  an  unfermented,  dried-up,  flat  cake  than  a 
loaf."  Flour  rations  are  reduced,  there  are  no 
potatoes,  meat  is  vanishing,  vegetables  have  dis- 
appeared, and  fruit,  while  milk  is  barely  in  sufficient 
quantity  for  infants  and  the  sick.  Horses  slaughtered 
In  Vienna  for  food  are  costing  from  1,400  to  1,850 
crowns  each,  or  from  /^S^  to  /^77  each ;  but,  then, 
wiint  is  the  Austrian  crown  worth  now?  As  much  as 
2d.? 

In  spite  of  all  the  howling  of  our  Press  mourners. 


there  is  only  one  region  where  we  see  ground  for 
some  despondency — ^apart  from  the  empirical  fashion 
in  which  our  financial  necessiities  are  being  provided 
for — ^and  that  is  on  the  sea.  When  one  looks  back  to 
the  swelling  language  in  which  the  Prime  Minister 
boasted  that  the  Prussian  submarine  campaign  of 
murder  had  ceased  to  have  the  .slightest  terror  for  him 
— emphasising  his  virile  faith  by  giving  figures  that 
showed  the  lowest  sinkings  in  any  one  week  since 
the  foul  piracy  began — one  is  inclined  to  wonder  if 
there  can  be  any  wisdom  in  the  War  Cabinet  or  in  the 
Ministry,  in  mo'b,  any  foresight,  any  possibility  of  a 
frank  and  imanly  co-operation  with  those  outside  the 
oflicial  preserves  capable  of  guiding  or  giving  advice. 
Sir  Walter  Runciman's  vigorous  speech  in  Tuesday's 
Co-mimons  would  incline  us  to  answer,  "  No,  theare  is 
none."  The  Admiralty,  in  its  handling  of  business 
men  and  affairs,  has  proved  even  more  pig-headed  and 
domineering  than  the  War  Office,  which  is  saying 
much.  It  haughtily  conveys  its  decisions  to  the  humble 
toeings  who  have  patriotically  volunteered  to  execute 
works  for  it,  and  should  the  "  outsider  "  venture  to 
express  doubt  or  to  suggest  that  there  might  be  a 
wiser  or  more  economical  course,  he  is  told  to  shut 
up  and  do  what  he  is  told.  It  is  that  spirit  and  atti- 
tude which  have  brought  down  our  output  of  new  ship- 
ping to  a  level  now  absolutely  dangerous,  and  unless 
there  is  a  change  the  .nation,  put  in  peril,  will  rise  in 
its  wrath  and  sweep  the  nests  of  incompetent  officials 
aside  altogether.  It  may  oome  to  be  that  or  the  ac- 
ceptance of  a  humiliating  peace.- 

Last  week  the  sinkings  of  British  ships,  other  than 
fishing  craft,  were  again  18,  or  the  same  as  in  each 
of  the  two  previous  weeks;  but  this  time  15  vessels 
of  1,600  tons  gross  and  upwards  were  sent  to  the 
bottom  and  only  three  below  that  size,  whereas  in 
the  week  ended  March  2  only  12  large  vessels  were 
sunk  against  six  smaller  ones',  and  in  the  week  ended 
February  23,  the  respective  numbers  were  14  and  four. 
Last  week's  destruction  of  large  ships  is,  in  fact,  the 
greatest  since  the  week  ended  January  6,  when  18 
were  sunk.  The  persistence  of  this  plague  is  not 
calculated  to  increase  the  public  faith  in  Sir  Eric 
Geddes'  optjtnism,  and  that  sort  of  attitude  is  not 
the  one  to  take  towards  the  nation.  We  are  not  chil- 
dren, requiring  baubles  and  toys  to  amuse  us  so  as  to 
take  our  minds  off  serious  tilings.  There  are  men 
and  women  amongst  us  just  as  capable  of  forming  a 
clear  judgment  on  events  as  the  most  competent 
minister  of  them  aill,  though  they  do  not  appear  to 
think  so.  Let  us  have  the  truth,  and,  above  all,  let  us 
ihave  co-operation  between  citizens  and  officials,  so 
that  we  may  attain  to  something  approaching  practi- 
cal wisdom  in  the  management  of  our  shipyiards  as 
in  other  spheres. 

Last  week  two  Italian  steamers  of  over,  and  one 
under,  1,500  tons  were  sunk,  as  well  as  two  small  sail- 
ing vessels.  The  French  loss  was  four  vessels  under 
i,fxx)  tons  burden. 


TD. 


STANDARD  BANK  OF  SOUTH  AFRICA,  L 

Bankers  to  the  Government  of  the  Union  of  South  Africa  in  Cape  Province ;   t-  the  Imperial  Government  in  South  Africa  and  to  the  Administration 

of  Rhodesia. 

Subscribed  Capital    ...    £6,194,100     I     Reserve  Fund     £2,000,000 

Paid-up  Capital £1,548,525     |     Uncalled  Capital         ...    £4,6  45,575 


WM.  REIERSON  ARBUTHNOT,  Esq. 

SI  R  DAVID  M.  BARBOUR,  K. C.S.I. ,  K/C.M.G. 

ROBERT  E.  DICKINSON,  Esq. 


Board      of      Directors. 

JAME^  FAIKBAIRN  I-'INLAY,  Esq.,  C.S.I. 
HORACE  PKEL.  Esq. 
WILLIAM  SMART,  Esq. 


Rt.  Hon.  LORD  SYDENHAM,  G.C.S.l,, 

G.C.M.G.,  G.C.I. E.,  G.B.E. 
H.  L.  M.  TRITTON,  Esq. 


Head  Office:   lO  CLEMENTS  LANE,  LOMBARD  STREET,  LONDON,  E.C.  4. 

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EVERY  DESCRIPTION  OF  BANKING  BUSINESS  transacted  with 
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East  Africa,  Soath-WestAlrici  Protectorate,  and  the  Belgian  Congo, 
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274 


XTbe  Jnvestors'  IRevtew. 


March  i6,   191S. 


Insurance    News. 


It   is  a  pity    that    the   Friends'    Provident   Society 
should  have  made  the  mistake  of  buying  the  shares  of 
the    Century    Company.        Wc   have  nothing    to    say 
against  that  company,  but  in  buying  it  the    Friends' 
Provident  as  trying  to  mix  oil  with  water,  and  we  can- 
not dmagine  what  pos6€ss€d  its  directors  to  enter  into 
any   such   transaction.     The   impression  it  creates    is 
that  the  Friends'  Provident  must  iitselibe  going  down, 
and,  in  one  sense,  no  doubt  it  is,  for  although    sound 
enough   and  possessed  of  solid   reserves   in    the    old- 
fashioned  way,  its  yield  is  circumscribed  and    it  can- 
not hope  to  hold  its  own  among  bigger  rivals  under 
the  stress  of  life  as  it  now  exi.sts.     Therefore  it  may 
have  occurred  to  the  board  that  the  acquisition  of    a 
miscellaneous  business   such  as  the  Century  has  built 
up,  a  business  dealing  in  all  sorts  of  insurance,  would 
be  just  the  thing  to  provide  the  necessary  sitimulus  to 
enable  it  to  survive  and  enter  on  a  new  era  of  progress. 
If  that  was  the  idea,  the  directors  are  going  to  have  a 
keen   disappointment.         Mr.    Schooling   is  perfectly 
right ;  the  bargain  Cannot  be  allowed  to  stand.     What 
right  have  the  directors  of  the  Friends'  Provident    to 
divert  any  of  the  policyholders'  money  for  the  purpose 
of    making  a  speculative  investment?      The    Century 
Company's  .shares  are  speculative  in  two  senses.  They 
fluctuate  on  tlhe  share  market  as  the  business  fluctu- 
ates, and  as  the  Century  has  but  slender  reserves,  it 
m.ight  even  come  to  happen  that  the  iiability  upon  the 
shares    would    emerge    and    prove     inconvenient,    or 
worse.     lit  is  the  fashion  to  ignore  the  liability  on  in- 
surance  companies'    shares,  more  even    that  the    lia- 
bility on  bank  shares ;  but  one  never  knows  in    these 
times  how  far  the  devastation  of  war  may  lead  us,  and 
certainly  there  are  some  of  th6  younger  and  more  go- 
alhead  amongs.t  our  insurance  managers  who  seem  to 
us  to  be  forcing  business  after  a  fashion  that  invites 
trouble.     Who  would  meet  the  liability  of  £^  a  share 
on  the  Century  Company's  capital  in  the  face  of  some 
unlooked-for     disaster    emerging    from    amongst     its 
hazards?     Or,   did   any   insurance    company   fall   into 
difficulties,  could  the  Century  escape  the  consequences 
of  the  doubt  and  fear  excited  ?    We  credited  Bradford 
men  with  more  sense. 

The  Employers'  Liability  Assurance  Corporation 
had  a  highly  prosperous  year's  trading,  the  premiums 
for  1917  showing  an  increase  of  no  less  than  ;^940,426 
at  ;^3,396,630.  By  the  addition  of  ;^8oi,688  the  re- 
serves were  raised  to  ;^3,659,o7o,  and  the  share- 
holders are  to  receive  a  dividend  for  the  year  of  £1 
a  share,  which  only  requires  ^100,000;  for  the  pre- 
vious year  the  distribution  was  i6s.  a  share.  The  ex- 
tension of  the  objects  of  the  corporation  in  resjject  of 
marine  was  adopted  during  the  year,  and  business  was 
begun  in  thSis  department  on  September  i,  when  City 
Underwriters,  Limited,  were  appointed  marine  mana- 
gers and  underwriters. 

Excellent  results  were  achieved  by  the  London  As- 
surance Corporation  last  year,  with  the  result  that  the 
dividend  has  been  raised  by  2  per  cent,  to  22  per 
cent.,  tax  free,  for  the  year.  In  the  life  department 
new  assurances  were  granted  under  533  policies  for 
^'413,174,  an  increase  of  168  in  number  and  of 
;^48,297  in  the  amount.  The  nett  premium  income 
was  ^'228, 1 56,  an  increase  of  ^7,758,  and  the  total 
income  from  all  sources  was  ;^34i,523.  The  life 
funds  were  raised  by  ;£"53,643  to  ^2,754,366,  and  the 
interest  earned  was  at  the  rate  of  JQ^  17s.  id.  per 
cent.,  an  increase  of  2s.  6d.  per  cent.  Nett  fire  pre- 
miums at  ;^872,725  showed  an  increase  of  ;^68,888, 
of  which  claims  absorbed  47.5  per  cent,  (against  45.6 
per  cent.),  and  expenses  36.8  per  cent,  (against  38.8 
per  cent.).  The  sum  of  ;^8o,ooo  was  added  to  the  fire 
funds,  increasing  them  to  ;^goo,ooo,  and  ;^84,993  was 
transferred  to  profit  and  loss.  Highly  .satisfactory 
are  the  figures  relating  to  the  marine  side  of  the  bu-si- 
ncss,  the  premiums  at  ;^i,743,928  showing  an  in- 
crease of  ;£^586,ooo,  and  the  amount  carried  to  profit 
and  loss  is  ;£^239,46i,  against  ;^i  19,000  a  year  ago; 
■while  the  marine  fund  has  been  raised  by  ;^35o,ooo  to 


;£,"!, 350,000.  General  reserve  again  receives  ;^ioo,ooo, 
increasing  ilt  to  ;^650,ooo,  and  the  total  assets  at 
;^7, 393,667  .show  an   addition  of  £966,$:,^. 

As  already  announced,  the  London  As.surance  Cor- 
poration is  about  to  take  over  the  business  of  the 
British  Ljiw  Fire  Insiurance  Company,  and  the  report 
of  the  last-named  company  for  1917  indicates  what  a 
fine  business  it  is.  Nett  premiums  were  ;^io,222: 
higher  th:m  in  1916  at  ;^i58,407;  this  figure  shows  an 
inarea.se  of  well  over  50  per  cent,  as  compared  with  10 
years  lago.  The  losjs  ratio  for  1917  as  regards  the  fire 
business  was  only  35.5  per  cent.  Each  holder  of  five 
partly-paid  .shares  of  ^10  each  {£1  paid)  will,  under 
the  terms  of  dhe  fusion  agreement,  receive  two  ordi- 
nary-shares of  £2  los.  (^'i  5s.  paid)  of  the  London 
Assurance  Corporation,  five  6  per  cent,  cumulative  pre- 
ference shares  of  ^"i  each,  and  £13  15s.  lod  in  cash^ 
or,  at  the  option  of  the  corporation,  £14  14s.  4d.  5  per 
cent.  War  Loan.  ThLs  is  assuming  that  before  April  15. 
the  London  Assurance  has  sub-divided  its  pwesent  ordi- 
nary shares,  which  is  apparently  the  intention  of  the 
directors.  In  the  event  of  the  sub-division  not  taking 
place,  then  British  Law  shareholders  will  receive,  in 
lieu  of  40,000  shares  of  £2  los.,  4,000  shares  of  £2^ 
each,  £12  los.  paid,  the  denomination  of  the  present 
shares.  The  distribution  of  the  larger  shares  among 
partly-paid  shareholders  of  the  British  Law  would  be 
carried  out  proportionately,  taking  the  market  price 
at  the  time  of  distribution.  Fully-paid  British  Lav,- 
shares  wx>uld  receive  three  6  per  cent,  preference  shares 
and  ;^3  3s.  2d.  in  cash,  (or)  £2  7s.  4d.  5  per  ce;nt. 
War  Loan. 


Annerican  Business  Notes. 


Railroad  reports  have  not  the  interest  in  Europe- 
which  they  possessed  before  the  war.  The  British 
public  have  had  to  divest  themselves,  if  not  of  owner- 
ship, at  least  of  the  control  over  their  American 
securities,  and  consequently  it  is  unnecessary  for  us  to 
enter  into  the  details  which  used  to  occupy  so  much  of 
our  space  in  dealing  with  the  annual  reports  of  these 
railways.  Nearly  all  the  companies  have  now  brought 
their  accounts  into  line,  and  they  end  with  the  calendar 
year.  Amongst  the  greater  companies,  the  first  to  appear 
is  the  report  of  the  Pennsylvania  Railroad.  Its  earnings 
for  1917  came  to  $255,094,000.  This  was  an  increase 
of  $24,815,000  on  the  previous  year's  total,  but  unfor- 
tunately working  expenses  increased  by  $34,423,000 
to  a  total  of  $200,588,000.  Consequently,  the  nett 
revenue  of  $54,505,000  obtained  from  working  of  the 
lines  was  $9,609,000  below  that  of  the  previous  year, 
•and  this  diminution  was  accentuated  by  the  smaller  nett 
revenue  drawn  from  other  sources,  which  was 
$21,715,000,  or  $1,450,000  down.  Then  taxes  rose 
$1,183,000  to  $10,241,000,  so  that  the  ultimate  result 
was  a  decrease  of  $12,242,000,  or  nearly  ;^2, 500,000, 
in  the  available  free  income,  and  after  meeting  all 
charges,  fixed  charges  alone  being  over  $800,000 
higher  at  $28,867,000,  and  paying  the  customary  divi- 
dend of  6  per  cent,  on  the  ordinary  capital,  no  more 
than  $7,160,000  was  left  as  undivided  revenue.  That 
compares  with  $20,185,000,  the  surplus  of  the  preced- 
ing year,  and  with  $10,527,000,  the  surplus  for  1914. 
Nearly  all  items  of  current  expenditure  show  increases, 
the  largest  being  one  of  $24,500,000  in  what  is  called 
cost  of  "  transportation,"  i.e.,  in  the  actual  working  of 
the  traffic. 

The  subsidiary  Pennsylvania  Co.  showed  the  same 
tendency,  the  gross  revenue  being  $3,026,000  larger  at 
$78,595,000,  and  expenses  an  increase  of  $11,617,000- 
at  $62,748,000.  Consequently  the  nett  earnings  of 
$15,847,000  from  traffic  are  $8,590,000  worse  than 
those  of  the  previous  year,  and  after  adding  in  the  out- 
side income,  which  at  $13,059,000  was  $778,000  up, 
there  was  only  $5,386,000  left  beyond  meeting  fixed 
charges.       For   1916  the  surplus  was  $9,645,000. 

The  Pittsburg,  C.C.  and  St.  Louis  line,  another  sub- 
sidiary of  the  Pennsylvania,  also  showed  a  decrease  in 
its  surplus  income  after  meeting  fixed  charges,  the 
balance  being  $4,580,000,  against  $6,865,000  for  1916^ 


March  i6,  igi8. 


XTbe  5nve8tot6'  IReview. 


275 


The  Norfolk  and  Western  is  another  railway  whose 
accounts  have  made  their  appearance.  They  show  a 
gross  revenue  from  freight,  passengers,  mails,  &c. ,  of 
$65,910,000  compared  with  $59,450,000  for  1916.  This 
is  an  increase  of  $6,460,000,  but  working  expenses  at 
$41,162,000  are  $7,654,000  larger,  and  the  nett  earn- 
ings of  $24,749,000  are  accordingly  $1,152,000  lower. 
This  decline  is  insignificant,  but  the  terr3ency  is  the 
same  as  show  by  the  Pennsylvania  group,  and  taxes 
aggravated  the  loss  still  more.  They  have  risen  from 
$2,480,000  to  $5,095,000,  including  the  excess  profits 
tax.  The  other,  or  investments,  income  was 
$1,174,000  higher,  but  even  so  the  final  free  profit  of 
$22,946,000  was  nearly  $3,000,000  less  than  the  pre- 
vious year.  The  dividend  on  the  ordinary  shares,  how- 
ever, was  increased  by  J  per  cent,  to  8  per  cent,  for  the 
year,  so  that  the  surplus  left  was  $3,342,000  down  at 
$8,424,000.  It  is  not  ruin  as  yet,  nor  even  paralysis 
of  dividend  capacities,  but  the  tendency  seems  to  be  in 
that  direction. 


The  Excess  Profits  Duty  in  Practice. 

In  spite  of  its  being  three  years  since  excess  profits  duty  was 
introduced,  there  appear  to  be  the  haziest  notions  in  regard  to 
exactly  the  precise  meaning  of  excess  profits,  and  also  as  to  the 
way  in  which  the  duty  is  leviable  and  upon  whom.  A  very  pre- 
valent mistake  is  to  regard  the  tax  as  a  tax  on  war  profis,  in- 
stead of  being,  as  it  is,  a  tax  upon  certain  of  the  profits  made 
since  the  war  began.  The  Act  has  proved  a  most  effective  means 
of  bringing  in  revenue  to  the  Treasury,  which  was  the  reason 
of  its  being  introduced.  Like  the  estate  duty,  it  has  yielded  a 
larger  refvenue  than  its  authors  anticipated. 

The  excess  profits  of  a  business  in  any  year  may  be  defined 
as  the  profits  of  a  business  earned  since  the  war  began  that  are 
in  excess  of  the  average  of  the  two  highest  of  the  three  years' 
profits  earned  before  the  war,  with  ;^2oo  added.  Thus,  the 
profits  of  a  business  might  be  for  year  1911,  ;^3,ooo ;  1912, 
;^2,ooo;  1913,  ^4,000;  1914,  ^3,300;  1Q15,  ;J5,ooo;  and  for 
'9'*'.  ;if6,ooo.  The  pre-war  years  are  the  first  three  of  the  above 
years,  and  the  highest  profits  shown  in  these  is  that  for  191 1 
and  1913.  The  profits  of  these  two  years  added  together  and 
divided  by  2  give  ;£3,50o  as  the  average  pre-war  profits.  To  this 
amount  is  added  i^2oo,  making  £},yoQ,  and  this  sum  is  taken  as 
the  amount  which  falls  to  be  deducted  from  the  profit  of  each 
year  during  the  war,  in  order  to  ascertain  the  amount  of  excess 
profit  upon  which  the  duty  is  to  be  charged,  but  lean  years  are 
allowed  to  be  run  against  fat  years.  For  the  year  1914  no  excess 
profits  duty  is  payable,  as  the  profit  is  under  /3,700  by  ;[$'40o. 
For  1915  duty  is  charged  on  ;^i,3oo  (;^5,ooo,  less  2^3, 700)  at  60 
per  cent.,  but  from  this  is  deducted  duty  at  50  per  cent,  on  the 
^400  of  deficient  profit  from  the  previous  year.  l"or  the  year 
igi6  duty  is  charged  on  ;^2,3oo  (;f6,ooo,  less  ^^3,700)  at  60  per 
cent. 

The  rate  of  duty  charged  is  50  per  cent,  of  the  excess  profits 
arising  before  the  expiration  of  one  year  from  the  commence- 
ment of  the  first  accounting  period,  60  per  cent,  of  the  excess 
profits  arising,  thereafter  up  to  December  31,  1916,  and  from 
January  i,  191 7,  the  rate  of  duty  is  80  per  cent.  The  duty  in 
respect  of  any  deficiency  in  profits  of  any  period  is  set  off 
against  the  duty  on  the  excess  profits  of  other  periods  at  the  re- 
spective rates.  Payment  of  the  duty  may  bo  made  in  Exchequer 
bonds  of  1922,  issued  on  and  after  April  30,  1917,  at  their 
nominal  value,  with  due  allowance  for  any  unpaid  interest 
thereon,  provided  that  the  bonds  have  been  held  continuously 
by  the  taxpayer  since  the  date  of  the  original  subscription  or  for 
a  period  of  not  less  than  six  months  before  such  duty  becomes 
due  and  payable.  Where  it  is  desired  to  make  payments  by 
means  of  such  bonds,  information  should  be  obtained  from  the 
Surveyor  ot  Taxes  as  to  the  necessary  steps  to  be  taken..  If  the 
excess  profits  duty  due  is  paid  more  than  a  week  before  the  last 
day  allowed  for  payment,  repayment  is  made  to  the  taxpayer 
in  respect  of  interest  for  the  period  between  the  date  of  the  re- 
ceipt of  the  remittance  and  the  date  (two  months  after  the  ser- 
vice of  the  notice)  when  the  duty  falls  due.  The  rate  of  interest 
is  subject  to  alteration  from  time  to  time  as  the  Treasury  may 
prescribe.  Sums  may  also  be  deposited  under  similar  general 
conditions  in  anticipation  of  assessments. 

It  is  important  to  notice  that  the  Act  is  very  far-reaching,  and 
practically  embraces  all  businesses  except  that  of  farmers  and 
the  professional  classes.  Many  people  imagine  that  it  is  merely 
profits  which  are  due  to  the  fact  of  the  war,  such  as  those  made 
by  munition  works.  But  the  Act  embraces,  for  example,  shop- 
keepers, and  a  considerable  revenue  has  been  derived  from 
them,  whilst,  in  consequence  of  the  war,  some  of  them  have 
been  put  out  of  business  altogether.  In  many  cases  this  is 
largely  their  own  fault.     Thus,   in  the  same  town,  v;e  find  one 

L tailor's  business,  which  is  practically  bankrupt  after  proving  a 
small  gold  mine  for  many  years,  and  another  business  beside  it, 
where  the  proprietors  had  the  foresight  to  stock  their  windows 
with  khaki,  and  work  that  for  all  it  was  worth,  yielding  a  rich 
crop  to  the  revenue.  At  the  beginning  of  the  war,  in  conse- 
nuence  of  the  interference  with  the  fish  trade,  the  making  of 
fish  boxes  was  practically  stopped,  but  box-makers  who  had  the 
enterprise  to  add  to  their  machinery  and  take  up  the  making 
of  ration  boxes  for  the  Army  have  been  very  prosperous. 
I 


Portmanteau-makers  found  no  demand  for  leather  trunks 
when  the  war  began,  but  the  enterprising  among  them  took  to 
making  accoutrements  for  war,  and  prospered  amazingly.  Their 
best  customers  were  the  French  for  such  articles  as  haversacks, 
because  the  French  Government  rejected  none  for  being  unsuit- 
able, as  the  British  Government  did,  and  the  French  paid  imme- 
diately on  delivery,  which  the  British  Government  did  not  do. 

Stoneware  manufacturers  and  bottle-makers  have  been  very 
busy,  and  in  the  majority  of  cases  where  the  business  is  large, 
have  had  to  pay  excess  profits  duty.  Stone  ginger  bottles  are 
used  and  re-used  in  this  country,  but  when  they  are  sent  over  to 
France  they  do  not  return,  as  it  appea/rs  the  carriage  would 
not  pay.  They  are  thus,  so  far  as  this  country  is  concerned,  only 
used  once. 

Wholesale  wine  and  spirit  merchants  have  largely  contributed 
to  the  excess  profits  duty,  and  the  head  of  one  of  the  largest 
of  these  concerns  in  the  country  recently  declared  that  he  was 
against  any  increase  in  the  price  of  whisky,  because  it  would 
simply  mean  increased  profits  for  his  firm,  and  they  would  have 
to  disgorge  them  all  except  what  he  called  a  paltry  15  per  cent. 
The  duty  in  this  case  certainly  kept  the  price  of  the  article 
down,  and  it  may  have  had  a  similar  effect  in  other  concerns. 

The  businesses  which  have  been  most  hit  by  the  war  are  those 
which  have  to  do  with  luxuries  and  the  providing  of  things 
which  can  be  dispensed  with.  House-painters,  for  example, 
have  had  a  very  bad  time  of  it,  as  both  wages  and  material  are 
costing  more,  and  such  work  is  nearly  at  a  standstill.  High- 
class  pianoforte  sellers  have  also  had  a  bad  time,  except  those 
who  have  catered  for  pianos  for  the  working  class.  Thus, 
down  the  Clyde,  those  who  cater  for  cheap  pianos  were  very 
prosperous  through  the  fact  that  engineers  who  before  the  war 
were  receiving  35s.  a  week,  and  whose  pay  rose  to  £3  or  ^^5  a 
week,  are  now  in  a  position  to  purchase  musical  instruments  of 
all  kinds  for  their  families. 

Considerable  excess  profits  have  been  earned  by  shopkeepers 
in  the  neighbourhood  of  any  of  the  naval  harbours  which  prac- 
tically came  into  existence  only  after  war  was  declared.  A 
number  of  village  storekeepers  in  Scotland  who  before  the  war 
were  doing  a  very  small  business,  are  now  large  contractors, 
employing  many  motor  lorries  and  making  a  large  revenue,  due 
to  the  presence  of  the  Navy. 

In  the  case  of  shipowners  the  amount  of  excess  profits  is 
arrived  at  as  a  rule  by  taking  each  vessel  separately,  as  the 
owners  are  different.  This  results  sometimes  in  a  shipowner 
being  badly  hit,  as  he  may  have  numerous  vessels  upon  which  a 
loss  is  being  made  through  their  being  unemployed  or  unable 
to  get  into  home  waters.  The  allowance  of  .,£'200  applies  to 
each  ship,  and  somewhat  equalises  matters. 

The  reason  why  farmers  do  not  have  to  pay  excess  profits 
duty  may  be  that  farmers  have  difficulty  in  preparing  their 
accounts.  In  the  case  of  farmers  the  great  difficulty  is  to  take 
stock,  and  that  has  been  largely  met  by  the  Inland  Revenue  ac- 
cepting from  farmers  a  declaration  that  the  value  of  the  tillages, 
unexhausted  manures,  and  growing  crops  upon  the  farm  does 
not  materially  differ  from  the  value  of  those  several  items  on 
the  corresponding  day  in  the  preceding  year.  Farmers  have, 
however,  been  made  to  pay  more  income-tax  by  the  method  of 
assessing  them  being  altered.  Formerly  farmers  were  assessed 
in  Scotland  on  one-third  of  their  rental  and  in  England  upon 
one-half,  but  since  the  war  they  have  been  assessed  upon  the 
full  amount  of  their  rental,  which  is  a  very  material  increase 
in  their  taxation.  It  is  to  be  observed  that  after  the  war  this 
basis  will  be  continued,  whereas  the  excess  profits  duty  will 
cease. 

Professional  men  have  been  excluded  from  the  Act  mainly 
because  the  yield  would  have  been  small  and  the  cost  of  collec- 
tion excessive. 

Since  January  r,  1917,  the  excess  profits  duty  is  80  per  cent. 
This  means  that  a  business  is  allowed  to  retain  ;f20  out  of 
every  ;,f  100,  but  this  ;^2o  may  be  subject  to  income-tax  at  the 
rate  of  5s.  per  £,  which  would  reduce  the  net  profit  to  ^15,  so 
that  in  a  good  number  of  businesses  (that  is,  where  the  incorne  is 
over  /■2,ooo)  the  only  excess  profits  earned  that  the  proprietor 
is  allowed  to  retain  is  15  per  cent,  of  the  total  excess  profits 
made.  As  this  is  a  very  small  percentage,  it  would  appear 
that  the  tax  has  reached  its  limit,  because  to  go  further  would 
practically  leave  no  inducement  for  anyone  to  increase  his 
profit  over  the  pre-war  average  plus  ^^200. 

One  result  of  the  excess  profits  duty  is  that  the  Inland 
Revenue  authorities  have  power  to  call  for  accounts  for  all  the 
years  concerned,  and  this  has  directly  resulted  in  a  large 
amount  of  arrears  of  income-tax  being  recovered.  It  has  also 
indirectly  resulted  in  the  excess  profits  duty  bringing  in 
revenue  which  perhaps  should  have  been  brought  in  under  the 
Income-tax  Acts.  Thus,  those  concerns  which  valued  their 
goods  at  too  low  a  figure  in  the  pre-war  years  had  a  very  low 
pre-war  average  of  profit,  the  result  now  is  that  they  have  had 
to  pay  excess  profits  duty  on  a  larger  figure  than  they  would 
have  had  to  pay  had  they  valued  their  stock  at  a  greater  figure 
and  paid  income-tax  on  the  increased  profit  thus  shown.  In 
most  cases  it  is  practically  impossible  for  the  stock  now  to  be 
materially  under -valued,  because  stocks  have  become  seriously 
depleted. 

The  excess  profits  duty  has  enabled  this  country  to  pay  a 
large  proportion  of  war  expenditure  out  of  revenue,  and  those 
who  have  to  pay  it  should  be  thankful  that  they  have  made  ex- 
ce-ss  profits  and  pay  the  duty  gladly,  and  the  vast  majority  are 
doing  so. 

George  Lisle,  C.A. 


376 


XTbe  Jnvestors'  IReview. 


March  16,   1918. 


NORWICH  UNION 

MUTUAL     LIFE    OFFICE 

because  of    its 
AGE  —  MAGNITUDE  —  RESERVE       STRENGTH 
—  PROFIT    YIELD  —  ALERTNESS,    &    ECONOMY 

The  Outstanding 
British 
Life  Office 

Wiil4    or  I'rospectus  la  the  Sicrctary, 

NORWICH    UNION    LIFE    OFFICE,    NORWICH, 

or  to  any  Branch  Office  of  the  Society. 


Ube  investors'  IReview. 

Money    and   Credit    Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5^  percent. on 
Thursday,  April  5,  19x7.) 

Norfolk  House,  Friday  Evening. 

Money  has  been  usable  all  the  week,  but  that  does 
not  imply  anything  like  real  scarcity.  We  cannot 
imagine  what  would  make  money  scarce  amid  the  pre- 
sent excessive  outpouring  of  new  credit  for  Govern- 
ment use.  So  it  is  a  matter  of  a  very  minute  fraction 
in  discounts,  and  of  little  more  in  loans.  The  rates 
remain,  on  the  whole,  so  near  the  figures  of  a  week 
ago  that  it  is  unnecessary  to  alter  our  table.  For  April 
Treasuries  the  quotations  were  firmer  in  the  middle  of 
the  week  at  J,^-^^,  and  for  remitted  bills  of  all  usances 
up  to  four  months  the  quotation  is  still  3^-|. 

The  Bank  return  shows  a  large  depletion  of 
"  market  money  "  as  revealed  in  those  Bank  deposits 
the  Chancellor  of  the  Exchequer  and  his  Press  keep 
moaning  over  because  they  are  not  at  once  turned  into 
National  War  Bonds.  That  is  to  say,  the  "  other  " 
securities  have  shrunk  ^.S,'j'i'j,ooo  during  the  week, 
because  ;;^i  1,1 12,000  of  Government  securities  have 
been  paid  off.  Through  that  reduction  in  the  total 
of  other  deposits,  plus  ;^2 ,669,000  drawn  off  the 
Government  balances  or  "  public  "  deposits,  these 
latter  are  now  ;^48,025,ooo  below  the  aggregate  of  a 
year  ago,  but  Government  securities  are  ;£'32,544,oc)0 
larger,  while  other  securities  are  less  by  ;^67,820,ooo. 
On  the  week  the  reserve  is  up  ;^307,ooo  owing  to  a 
decrease  of  just  about  that  amount  in  the  note  circula- 
tion, gold  being  as  before,  or  merely  ;^2g3  up.  The 
proportion  of  reserve  liabilities  has  risen  ij  per  cent,  to 
i8f  ■because  of  the  reduction  of  nearly  ;^i  1,400,000  in 
the  gross  liabilities  on  private  and  public  deposits 
together. 

The  figures  issued  by  the  geniuses  wlio  managed  the 
"  Biusiness  Men's  Week  "  in  London  and  the  pro- 
vinces, as  far  as  they  go,  are  boasted  about  as  "  emi- 
nently satisfactory,"  w"hich  they  no  doubt  are.  But 
they  (provide  only  a  slender  part  of  what  is  required, 
and  the  details  of  subscriptions  put  us  on  our  guard 
against  accepting  the  gross  figures  as  representing 
nothing  ,save  new  money.  Here,  for  instance,  are 
some  of  the  contriibutions  gtoing  to  make  uip  the 
;^75, 000,000  of  London  alone  : — London  City  and 
Midland  Bank,  ;^3,ooo,C)00 ;  Lloyds  Bank,  ;^2, 000,000; 
Capital  and  Counties  Bank,  ;^i, 000,000;  Glyn,  Mills, 
Currie  and  Co.,  Lord  Cowdray,  and  Lord  Pirrie,  each 
;^ 500,000;  Chartered  Bank  of  India,  Australia,  and 
China,  Union  Discount  Co.,  National  Discount  Co., 
Iron  Trades'  As<*odation,  National  Bank  of  India, 
Coutts  and  Co.,  Price's  Patent  Candle  Co.,  and  Anglo- 
.American  Oil  Co.,  each  ;^2 50,000,  and  soon,  down- 
wards to  subscriptions  of  ;£'5,ooo  each  by  Madame 
Tussaud's,  the  Hackney  Furn.isbing  Co.,  and  Hinds, 
Limited.  The  Prudential  Assurance  Co.  collected 
;^40o,ooo  during  tihe  week  to  be  put  in  War  Bonds 
under  the  company's  fjen.sion  scheme  of  investment, 
Rud  that,  no  doubt,  is  all  new  money.     But  how  much 


of  the  subscriptions  .set  forth  in  detail  above  is 
new  money,  how  much  the  mere  conversion  of  Trea- 
sury Bills,  Exchequer  Bills,  or  other  form.s  of  tem- 
porary debt  into  National  War  Bonds?  Let  us  have 
a  plain  statement  of  the  facts,  so  that  we  may  know 
where  we  are.  If  the  war  goes  on  for  another  year, 
as  it  may,  we  shall  want  to  borrow  probably  another 
;£,"3, 000,000, 000  to  meet  its  cost  and  to  consolidate  our 
Treasury  Bill  floating  debt  alone. 

A  further  development  of  the  policy  of  forming 
alliances  among  the  banks  was  foreshadowed  by  Mr. 
Walter  Leaf  at  the  extraordinary  general  meeting  of  the 
London  County  and  Westminster  Bank  this  week.  In 
a  very  effective  speech  in  defence  of  bank  fusions  Mr. 
Leaf  said  it  was  the  only  reply  that  could  be  made  to 
the  "  money  trust  "  formed  in  Germany  by  the 
Deutsche,  Dresdner,  and  Disconto-Gesellschaft,  which 
have  absorbed  so  many  undertakings  recently  that  their 
capital  and  reserves  have  been  increased  by  50  ]>er  cent. 
That  "  trust  "  is  determined  to  capture  the  finance  of 
the  world,  he  said,  and  it  was  obvious  that  unless 
British  banks  combined  they  could  not  hope  to  defeat 
German  competition.  The  formation  of  the  British 
Italian  Corporation  by  a  group  of  British  banks  and  the 
arrangements  made  between  Lloyds  and  the  National 
Provincial  for  representation  in  France,  and  between 
the  Anglo-.South  American,  the  London  and  Brazilian, 
and  Williams  Deacon's  Banks,  may  he  regarded  really 
as  among  the  first  of  a  number  of  alliances  that  may 
be  eventually  arranged  for  the  protection  of  British 
banking  and  our  foreign  trade. 

We  learn  that  the  National  Metal  and  Chemical  Bank, 
to  which  reference  was  made  a  fortnight  ago,  has  been 
formed  by  a  group  of  interests  associated  with  the 
smelting  and  chemical  industries  not  only  of  this 
country,  but  of  the  Dominions.  The  capital  of 
;^i, 000,000  has  been  privately  subscribed,  and  no 
subscriptions  will  be  invited  from  the  public.  The  bank 
will  not  compete  with  other  banks  for  deposits,  but  will 
devote  its  energies  mainly  to  financing  the  development 
of  smelting  and  chemical  works  and  the  marketing  of 
products.  In  this  respect  it  will  be  able  to  offer  greater 
facilities  than  the  ordinary  bank. 

Through  Co{>enhagen  the  news  is  transmitted  from 
Berlin  that  the  eighth  German  Loan  is  to  amount  to 
;^,'750,ooo,ooo.  It  is  also  added  that  the  total  war  debt 
of  the  HohenzoUem  Empire  up  to  date,  and,  pre- 
..sumably,  exclusive  of  this  new  loan  not  yet  floated,  is 
about  ;£^5, 500,000,000,  and  that  is  quite  a  tidy  amount 
for  an  empire  without  trade,  shut  in  upon  itself,  and 
devoured  by  its  war  with  the  world.  And  the  whole 
truth  is  not  therein  contained.  The  Berlin  serfs  have 
never  disclosed,  so  far  as  we  have  observed,  what 
their  Allies  have  cost  their  empire.     Do  they  know? 

The  Yokohama  Specie  Bank  announces  that  ^"629,600 
4^  per  cent,  sterling  bonds  (1905)  of  the  first  .series 
and  ;^374,520  bonds  of  the  second  series  have  been 
purchased  on  behalf  of  the  Japanese  Government  for 
cancellation. 

The  principal  feature  in  the  foreign  exchange  market 
this  week  has  been  the  recovery  in  the  value  of  the 
lira.  This  has  been  due  to  the  Italian  Government's 
scheme  for  regulating  dealings  in  exchange.  A  Com- 
mittee has  been  appointd  composed  of  bankers  and 
exchange  experts  and  Government  officials  to  control 
transactions.  This  scheme,  which  was  put  into  opera- 
tion on  Monday  last,  will  stimulate  speculation  and 
prevent  the  remittance  of  funds  abroad  except  for 
purposes  essential  in  the  national  interest.  The-^ex- 
change  has  accordingly  declined  1.65^  Ir.  to  41.05  Ir. 
to  the  pound  sterling,  but  the  market  is  quiet  and  really 
rather  nominal.  There  has  been  a  further  sharp  fall 
of  32I  points  to  19.07^  pesetas  to  the  {X)und  in  the 
Spanish  exchange,  and  for  the  time  being  all  hope  of 
a  credit  in  Spain  seems  to  have  been  dropf)ed  owing  to 
the  unsettled  political  situation.  The  Swiss  exchange 
has  also  moved  20  points  against  us  to  21.05  fr.,  and 
.'\msterdam  is  12  points  lower  at  10.40J  fl.  Scandinavian 
exchanges  have  been  quieter  and  steadier.  Montreal 
has  risen  a  couple  of  points  to  $4.83^. 


M.AKCii  1 6,  1918. 


Zbc  Jnvestovs'  IReview* 


277 


Silver. 
Silver  has  hardened  this  \veei<  owing  to  the  continued 
purchases  of  the  metal  by  China  in  San  Francisco, 
where  considerable  premiums,  says  Mocatta'.s  circular, 
are  btiing-  paid  over  the  New  York  quotation.  Japan's 
probable  intervention  in  the  Far  East  may,  it  is  sug- 
"•ested,  have  encouraged  speculative  purchases  in 
China,  and  as  exchanges  there  seem  firm  the  market 
looks  like  holding.  The  last  Indian  currency  return 
shows  the  reserve  of  rupees  to  be  1,271  lacs,  which  is 
30  lacs  below  the  figure  of  February  28,  but  a  recent 
purchase  of  2,000  bars  in  Bombay,  said  to  be  on  behalf 
of  the  Indian  Government,  may  soon  improve  the 
position.  According  to  Montagu's  circular  the  stock 
of  silver  in  Bombay  on  March  8  consisted  in  1,300  bars, 
a  decline  of  i,qoo  bars  on  the  total  of  February  8. 
In  Shanghai  the  stock  on  March  g  was  about 
29,850,000  ozs.  in  sycee  and  $13,500,000,  which  was 
an  increase  of  200,000  ozs.  and  a  decline  of  $100,000 
compared  with  March  2. 

Applications  for  the  Rs.  60,00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Rs.  2,19,55,000.  Of  these 
Rs.55,4g,ooo  were  allotted  in  deferred  transfers,  and  Rs. 
4,51,000  in  immediate  transfers.  Tenders  for  bills  and  de- 
ferred transfers  at  is.  4  2q-32d.,  and  for  immediate  transfers 
at  13.   5d.  received  about  27  per  cent. 


BANK    OP    ENGLAND 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32.  for  the 

Week  ending  on  Wednesday.  March  13,  1918. 

ISSUE    DEPARTMENT. 

f        I  £ 

Notes  Issued           ..        ..    77,586,970  :  Government  Debt..        ..  11,015,100 

Other  Securities    ..         ..  7,434,900 

Goid  Coin  and  BallioD    ,,  59,136,970 

Silver  Bullion         ..        ..  — 


Proprietors' Cipltal        ..      14,553.000 

Rest 3,566,057 

P'jbllo  Depo9its(lni:ludl[ig 

Bzcbequer,      Savings 

Banks,  Commissioners 

of  National  Debt,  and 

Dividend  Aooounts)  .. 
Otber  Deposits 
Seven  Da;  and  otber  Bills 


f  77, 586,970 
BANKING    DEPARTMENT. 
£ 


f  77,586  970 


Government  Securities 
Other  Securities    ., 

Notes 30,302,550 

Gold  and  .Silver  Colo      ..  948,041 


£ 
56,604,782 
97,604,309 


^185,479,685 
J.  G.  NAIRNE,  Chief  Cashier. 


£185,479,685 
Dated  March  14,  1918. 

BANKING     DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
Mar.  14. 

March  6, 
igi8. 

Mar.  13, 
igi8. 

Increase. 

Decrease. 

£ 
3,597.714 
86,377,187 
119,113,866 

S5>358 

24,081,221 

165,424,569 

34.161,355 

i 

38,23^,720 
54,009,935 

Liabilities. 
Rest 

Pub.  Deposits  .. 
Otber    do. 
7  Day  Bills 
Assets. 
Gov.  Securities. 
Otber       do. 
Total  Reserve.. 

NoteClroulation 
Coin  and  Bullion 
Proportion 
Bank  Rate 

£ 

3,571,104 

41,021,875 

137.715,291 

10,895 

67,736,782 
98,I9',457 
30,943,926 

£ 

47,590,795 

60,0^4,721 

17-3  P-o. 

5      ,. 

f. 

3,566,05T 

38,352,6oti 

128,997,923 

10,097 

56,624,782 
97,604,309 
31,250,594 

47,284,420 
63,085,014 
187  p.c. 
5 

£ 

Decrease. 

11,112,000 

587,148 

11,699,148 

Increase 

£ 
293 

1-4  p.c. 

£ 

5.0*7 

2,669  267 

8,717.368 

798 

Increase. 

306,668 
11,699,148 

Decrease. 

306,375 

LONDON  BANKERS'  CLEARING. 


Date. 

Increase. 

Decrease. 

January 
February 
March       6 
"3 

1918. 

2,073.224,000 

1,6  5,634,ojO 

464  845,000 

426,604,000 

1917. 

l.86j,i25,coo 

1,779,524,000 

540,7g6,coo 

312,109,000 

208,099,000 

£ 

173,890.000 
75,951,000 
114,495.000 

Total 

4.570.307,000 

4,497,554,000 

208,099  000 

364.336.000 

CURRENCY  NOTES. 

Return  of  Currency  Notes  for  the  week  ended  March  13,  1918. 


PUBLIC   INCOME  AND   EXPENDITURE. 

(For  7  days  ended  March.  9.) 


REVEyNUB. 


£ 

Customs          1,713,000 

Excise 375  000 

Estate,  &c.,  Duties  ..        ..  623,000 

Stamps 325.000 

Land  Tax  and  House  Duty  150,000 

Property  and  Income  Tax  13,092,000 

Excess  Profits  Tax..        ..  5,640,000 

Land  Values  ..        ..        «»  10,000 

Post  OflSce 350,000 

Crown  Lands — 

Sundry  Loans..        ,,        ..  — 

Miscellaneous 60,895 

Bullion  advances  repaid   ..  8o,oco 

ForTreasuryBiUs  for  Supply  66,212,000 

5%  Exchequer  Bonds,  1922. .  — 

6%  Exchequer  Bonds,  1920. .  — 
National  War  Bonds         ..^•54,183.000 

War  Savings  Certificates  . .  2,000,000 
4%  War  Loan,  1929-1942  ) 
5%  War  Loan,  1929-1947  )  *  * 
Other  Debts  created   under 
War  Loan  Act,  1915,  and 
Finance  Act,  1916..         ..21,052,466 

Telegraph  Money  Act,  1013  — 
Under  Post  Office  Rly.  Act, 

.      1913 — 

Under  Military  Works  Act, 

1897-1903       — 

Under  Public  Buildings    .,  — 

Under  Housing  Act..        .,  — 
Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds           — 

China  Indemnity      ..        ..  378,314 
East    Africa    Loan    repay- 
ments   — 

Suez  Canal  Drawn  Shares. ,  — 

Ways  and  Means  Advances  10,000,000 
Decrease      in      Exchequer 

balances       — 


5^176,444,675 


Expenditure. 


National  Debt  Service 
Interest,   &c.,  on  War  Debt 
Development  &  Road  Impvt 
Payments  to  Local  Taxation 
Other    Consolidated    Fund 

Charges        

Supply  Services 
~   IHoi 


£ 

213.081 
'■153.833 

110,380 


49,633.658 
100,  coo 


Bullion  Advances     . . 
For   Advar.ce   for    Interest 
on  Exchequer  Bonds  un- 
der  Capital  Expenditure 
(Money)  Act,  1904  ..        ..        — 
For  Treasury  Bills  ..        ,.  82,870,000 
Other  Debt  under  War  Loao 

Acts,  1914-16  ..        ,.    7,000,924 

For    War     Loan  and     ICx- 
chequer      Bonds      under 
Section  61  of  Finance  Act, 
1916,  and  Seciion  34,  1917    1,628,437 
Under   Telegraph    (Money) 

Act,  1913 — 

Under  Post  Office  (Lon- 
don) Railway  Act,  1913  ..  — 
Under  Miliiar/  Works  Acts  — 
Under  Housing  Act,  1914..  — 
Public  Buildings  Expendi- 
ture Act,  1903  ,.  .,  — 
Old  Sinking  Fund,  1907-8.,  — 
Sinking  Fund,  1914..  ..  — 
China  Indemnity  ..  ..  — 
East  African  Loan  . .  , ,  — 
Cunard  Agreement  Act  . .  — 
Expenditure  Ceitificaies   . .  i,3^o 

Depreciation  Fund  ..         ..        — 
Suez  Canal  Drawn  Shares..        — 
Temporary  Advances  Repaid  31,250,000 
Increase      in       Exchequer 
balances       2,483,032 


1^176,444,675 


^Excluding  sales  through  banks  which  have  not  yet  been  brought  to  account. 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  4s,l 


Feb.  15,  1918. 

Feb.  8,  19 18. 

Feb.  16,  191 7. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

£ 
89,275,600 

77,393,'zoo 
10,500.000 

£ 
87,981,400 
80,808,400 
10, "i  00,000 

£ 
54,873.400 
43,444,200 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

177,163,800 

I70,475>ooo 

4,061,6  0 

179,289,800 
167,651,800 

'(,002  000 

98,117,600 

59,454,000 

360,800 

Total  gold  reserves    .. 
Legal  tender  notes,  silver,  &c. 

3:1,708,400 
12.038.800 

310,933,600 
11.6S5.200 

157,932,400 
1,521,800 

Total  reserves  . . 
Bills  discounied— Members' . . 
Bills  bought  in  open  market 

363,747.200 
ICO, 383,200 
57.452,600 

362,618,600 
105,024,200 
56,141,000 

159,454.200 
3,910,600 

25.210.80T 

Total  bills  on  hand     .. 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec.     . 
All  other  earning  assets 

I57.«35.8«> 

10,468,600 

21,196,200 

897,200 

161,165,200 

11,156,400 

34,020.000 

884,60* 

29,lil,400 
5,894,200 

3,729,400 
3.363,200 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 

190,397,800 

3,451,600 

7i,4i3.?'oo 

207,226,200 
2,491,600 
54,501,200 

42,108,200 

1,568.000 

28,849,800 

Total  dedctns.  fm  gross  dep. 
5%Red.FundagFed.Res.bknt5 
All  other  resources 

74,805.4^0 
107,400 
116,400 

56,992,800 
107,400 
110.200 

30,417,800 

80,000 

1,683,200 

Total  resources 

62g,234,2co 

627,os5.400 

233,756400 

Capital  paid  in 

Suiplus 

Government  deposits  .. 

Due  to  membrs-Res.  account 

Collection  items 

Oiherdeps  inc.For.Govt.  crdts 

14,645,800 
226,fOO 

17,528.600 
281,942.800 
45.657.803 

10,463,000 

14,405,500 
226,800 
11,897,600 
300,260,200 
35,430,800 
li.Q74.8oo 

11,154,600 

2,170,900 
137,718,200 
24,243,600 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn-nettliab. 
AH  other  liab,  in  for  Gov  cidts 

355.592, a-^o 

256,204,000 

1,599.800 

960,600 

357,563,400 

252,243,800 

1,600,000 

8s5,6oo 

164,132,000 
58,367,800 

102,000 

Total  liabilities 

629,234,200 

627,055.400 

213,756,400 

Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Ratio  nf  gold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio    of    total    res.    to    neti 
deposit  and   F.R.    note  lia- 
bilities comb  ned 

63.1% 

68.,% 
65.5% 
67.7% 

59-6% 
68.0% 

63.5% 
65.6% 

73-4% 
ioa.4% 

82.!% 

83.0% 

NEW    YORK  ASSOCIATES    BANKS   (dollar  at  4s.). 


Mar.  9,1918. 

Mar.  2, 1918. 

Feb.23,1918. 

Mar.10,1917. 

Loans       

Reserve  held  in  own  Vaults  . . 
Reserve  held  in  Fed.  Res.  Bk. 
Cash  in  own  Vaults     .. 
Reserve  held  in  Other  Depos. 
Nett  Demand  Deposits 
Nett  Time  Deposits    .. 

Circulation         

EjcesB  Lawful  Reserve 

877,136,0*0 

3,274,000 

99.284,roo 

2o,ooS,ooo 

1,574,000 

723,812,000 

40,206,000 

6,960,003 

7,704,000 

855,294,000 

3,302,000 

98,262,000 

19,840,000 

1,628,000 

39,722,000 
6,924,000 
8,076,000 

£ 

850,020,000 

3,272,000 

99,170,00c 

19,736,000 

l,64(>,ooo 

715,460,000 

40,294,000 

6,854.000 

8,748,000 

£ 

700,190,000 

100,702,000 

40,212,000 

11,416,000 
718,242,000 
36,414,000 

5i730,ooo 
28  384,000 

£1  notes 
JOS.  notes 
Note  certificates 
Previous  total 


Issued. 


i 

4.357,529 

1,224,211 

850,000 

849.472.6s6 


Cancelled. 


855.924,396 -^-^-, 

Ratio  of  gold  held  against  notes,  this  week,  14.24  p.c 


£ 
2,695,972 

1,108,376 
20,'  00 

628,783,33  3_ 
632.607,681 


Lawful  Reserve  consists  of    18%  of    ttie  Demand  Deposits  and  5%  ot    thu 
Time  Deposits 


Outstanding.         NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES  (dollar  at  48). 


£ 

163,016,853 
37,159,862 
23,140,000 

2;o, 689,323 


223.3'6.7i5 


last  week  14.53  P-c. 


Loans  .. 
Specie 
Deposits 
Legal  Tenders 


Mar.  9,  tgi8. 


148,324,000 

2,906,000 

139,996,000 

13,102,030 


Mar.  2,  1918. 


/ 

[74,874,000 

3,590,000 

172,828.000 

i6,976.coo 


Feb.  23,  1918.   Mar.  10, 1917 

T 
i73.304.oo« 

3,170,000 
170,216,000 
16,750,000 


278 


Zbc  Jnvestors'  IReview. 


March  16,  igi8. 


BANK 

OP  FRANCE   (25  Irancf  to  the  £). 

Mar.  14,  1918. 

Mar.  7,  1918. 

Feb.  28,  1918. 

Mar.  15, 1917. 

£ 

£ 

£ 

Gold  In  hand 

133,346,160 

133,295,000 

133,241,520 

128,856,160 

Silver  In  hand 

10,248,200 

10,143.320 

10, 197,040 

10  664,920 

Bills  diBOounled      .. 

42,563,560 

44,92'>.o.|0 

52,489,360 

19,341,600 

Advances 

47,020,800 

47.432,520 

46,815,320 

49,125,240 

Note  olroulatlon      .. 

989,764,800 

986,001,080 

972,332,280 

734,46 ".963 

Public  deposits 

1,552,040 

1,163,360 

2,089,08a 

900,680 

Private  deposits 

j03,927,4'*o 

105,228,320 

103,249,000 

97,756,680 

Poreicn  Bills.. 

434.200 

389,200 

350,000 

92,840 

BANK   AND  DEPOSIT   RATES. 


Last  week  This  week 
Percent.    Per  cent. 


Proporlion  between  bullion  and  circulation  22.74  per  cent.,  against  22.82  per 
eent.  last  weelc.  Advances  to  the  State  ^^542,000, 000,  increase  £8,000,000.  The 
adjourned  payments  of  drafts  In  Paris  on  account  of  lb«  moratorium,  £19,537,000, 
decrease  137.660,  and  at  the  branches  £24,897,600,  decrease  £32,720. 

BANK    OF    SPAIN  (25  pesetai  to  tht  £). 


Gold       

Silver 

Forelin  Bills    ., 
Discoante  and  Short  Bills  .. 
Treasury  Aooount,  &c. 
Notes  in  CIroutatiun  .. 
Current    Aoeounts,   Deposit 
Dividends,  Interests,  &0.     .. 
Government  Seourliles 


Mar.  2, 1918 


Feb.  23, 1918 


£ 

79,740.8j« 
28,391,950 
3.576,898 
31,403,464 
24,958,460 

113.958,279 

34,288,890 

1,802,869 

6,712,622 


Feb.  16, 1918 


£ 

79.555.541 

28,407,129 

3»556,10S 

31,236,108 

25,063,901 

113.335.219 

34,776,066 

1,814,105 

6,4''9,7'3 


I 

79.498,101 

28,301,819 

3.498.959 

31.057.719 

25,450,316 

113.279,761 

36,245,163 

1,872,994 

6,081,360 


Mar.  3,1917. 


£ 
5.3.085,253 
29,835,001 
3.514.215 
25,848,651 
26,394,781 
95,921,622 

30,022  299 
1,698,809 
I,7'4.390 


NETHERLANDS  BANK  (12  Florins  to  the  £). 


Gold  and  Silver 
Bills  and  Advances 
Note  circulation 
Deposits. . 


Mar.  9, 1918 


£ 

00,776,750 

11,902,833 

71,766,666 

5,329,333 


Mar.  2, 1918. 


£ 

6o,9i5.5<'o 

13,188,083 

72,721,166 

5.747.250 


Feb  23, 1918 


£ 

60,164,418 
12,899,916 
70,676,333 
_6,768,756^ 


Mar.io,  1917 


£ 

49,892,500 

15,708,500 

61,745.750 

8,067,833 


BANK  OF  NORWAY  (18  kroner  to  the  £). 

Feb.  28,  1918 

Feb.  22, 1918. Teb.  15.  1918. 

Feb.  28,  1917. 

Gold    .. 

Balance  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
Discounts  &  Loans. 
Notes  in  Circulation 
Deposits  at  notice.. 

6,525,000 

3.458.000 

713.000 

19,375,000 

17,678,000 

*   9,124,000 

,    £ 
6,525,000 

3.631,000 

713,000 

19,393,000 

17,424,000 

9,749,000 

6.526,000 

3,665,000 

713.000 

19,878,003 

17,331,000 

10,000,00c 

6.895,000 

4, 210, coo 
740,000 
8,334,000 
14,046,000 
4,044,000 

BANK  OF  ITALY  (25  lire  to  the  £). 


Jan.  10, 1918 


Total  cash 
Inland  Bills 
Foreign  Bills    . . 
Advances 

Government  securities 
Circulation 
DApoeits  at  notice 
Cuirent  accounts 


Dec.  31,1917 


£ 

42,627,400 

28,537,160 

884,880 

16,410,120 

8,900,680 

262,700,040 

34,462,960 

24,434,ti40 


£ 

45.379.080 

30,285,400 

885,000 

17.455,200 

8,924,840 

261,567,800 

35,458,280 

20,663.840 


Dec.20,  i9i7pec.io.  1917 


£ 
42,884,760     43,776.080 

«Q  r«,  «.,«  -".,174,000 
929,120 
894,080 
689,960 
695,760 
454.720 
923.760 


28,521,920 

907,800 

17,829,040 

8,810,960 

257.735.560 

35.333.480 

22,121,680 


256,( 
33.4 


SWISS  NATIONAL  BANK  (25  francs  to  the  £). 


Gold  and  silver      . . 

Bills 

Note  olroalatloD 
Current  and  deposit 
aooounts 


Feb.  23, 1918. 


£ 

16,903,360 

8,860,124 

25,866,764 

3,079,406 


Feb.  23,  1918. 


16,936,708 
8,084,840 
24,516,484 

3,584,900 


Feb.  IS,  1918. 


£ 
16,787,100 
7,203,664 
24,429,073 

2,963,916 


Feb.  7, 1918. 


£ 
16,723,652 
10,185,452 
24,811,716 

5,469.752 


BANK 

OF    SWEDEN  (18  kroner  to  the  £) 

. 

Feb.  23, 1918. 

Feb.  16, 1918. 

Feb.  9,  1918. 

Feb.  24,  1917. 

Cold 

Balance   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  .. 
Discounts  and  Loans 
Notes  in  oiroulption 
Deposits  at  notice  .. 

13,069,000 
7,364.000 

3.143.000 
11,421,000 
29,596,000 

5.676,000 

13,084,000 
7,529,000 

2,881,000 
11,432,000 
29,250000 

6,003,000 

£ 
13,100,000 

7.476,000 

2,881,000 
12,247,000 
29,105,000 

6.663,000 

10,632.000 

8.142,900 

3,771,000 

4,203,000 

20,455,000 

5,745,000 

LONDON  COURSE  OP  EXCHANGE. 

Place. 

Usance. 

Mar.  12,  1918. 

Mar.  14,  1918. 

Sellers. 

Buyers 

Sellers. 

Buyers. 

Amsterdam  . .     . . 
Paris      

Switzerland!.     '.. 

Petrograd    '.'.    '.'. 

Genoa,  Ac 

Spain     

Lisbon  and  Oporto 
Copenhagen..     .. 
Cliristiania  ..     .. 
Stockholm  ..     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills. .     . . 

Cable  transfers 

Tbre.-  months'  bills  . .     . . 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Three  months' bills..     .. 

Cable  transfers 

Cable  transfers 

Cable  transJers 

Cable  transfers 

10.45 
27.  M 
27  60 
21  03 
21  38 
nom. 
40.95 

1 

1570 
15.42 
1482 

10.50 
27.25 
27.65 
21.13 
21.48 
nom. 
41.15 

1 

1 5. 80 
1552 
14.92 

10.37 
27.22 
27.62 
21.00 
21-35 
nom. 
4t.oo 
1908 

58i 

28 
1568 
15.40 
14.78 

10.40 
27.27 
27.67 
21.10 
21-45 
nom. 
41.10 
19.18 
S9i 

15.78 
15.50 
1488 

Bank  of  Rogland  mlnlfnum  dIseoDDl  rate 
,,  ,,         short  loan  rates 

Bankers*  rate  on  deposits 

Bill  brokers*  deposit  rate  (oall)       ..        .. 

„  y  and  14  daye'  notloe  .. 

Current  rates  for  7  day  loans  ,.        .. 

„  for  call  loan*  ..         .. 


I 

3— i 


3-1 


OPEN  MARKET  DISCOUNT.  Last  week.  This  week 

—.._,,,                  ,                                                 Percent.  Percent. 

Thirty  and  sixty  day  remitted  ..      3)— A  ..    jj 

Three  months                 „  ,,      3I    *■  ^ 

Pour  months                   ,,  %S— A  3^ 

Sl<  months                       ,  .        ak-S  '     ,J 

Three  months  fine  inland  bllU  ji.  ,»  •  jn 

Pour  months  

Six  months  ••        ..        .. 


FOREIGN  RATES  OF  EXCHANGE  ON  LONDON. 


Method  of 
Quoting. 


a,  M 
u 


Paris,  cheques 
Amsterdam,  cheques 
Italy,  sight 
Madrid,  sight.. 
Lisbon,  sight .. 
Switzerland,  sight   .. 
Christiania,  siKht      .. 
Stockholm,  sijfht      .. 
Copenhagen,  si^ht    . . 
Petrograd,  sight 
Alexandria,  sight 
Bombay,  T.T. 
Calcutta,  T.T. 
Hong  Kong,  T.T.     .. 
Shangliai,  T.T. 
Singapore,  T.T. 
Yokohama,  T.T. 
New  York,  cable 
Buenos  Aires,  T.T... 
Valparaiso,  90  days.. 
Ilontevideo,  T.T.     .. 
Rio  de  Janeiro,  90  days 


Francs  to  £t 
Florins  to  £1 
Lire  to  £1  . . 
Pesetas  to  £1 
Pence  to  mllreis  . 
Francs  to  £  I 
Kroner  to  £1 
Kro::er  to  f  1 
Kroner  to  £1 
Roubles  to  £10     . 
Piastres  to  £1 
Sterling  to  rupee. 
Sterling  to  rupee. 
Sterling  to  dollar. 
Sterling  to  tael 
Sterling  to  dollar. 
Sterling  to  yen     . 
Dollars  to  £1 
Pence  to  dollar    . 
Fence  to  peso 
Pence  to  dollar    . 
Pence  to  milreis  . 


25.224 

12.107 

25.22J 

25.224 

53ld. 

25  224 

18.159 

18.159 

18-159 

94-57 

974 

1/4 

1/4 


2t.58d. 
4-861 
47-58d- 

5ld. 
l6d. 


Last 
Week. 


27.204 

10.49 

41-55 

19-30 

2*i- 

21.29 

15-48 

14.92J 

15-78 

nom. 

I/4I 
2/11 

2/3H 
2/1 K 
4.761! 

%■ 
S9id. 


This 
Week. 


The   Week's    Stock   Markets. 

Some  rather  wild  rumours  were  in  circulation  on  the 
Stock  Exchange  during  the  week,  but  they  were  as 
ephemeral  as  they  usually  were  fantastic,  and  they  had 
little  or  nothing  to  do  with  the  tale  of  restricted  deal- 
ings and  drooping  prices  which  go  to  make  up  the 
week's  account.  No  doubt  the  Tank  "stunt"  has 
diverted  a  gxxsd  deal  of  investment  business  from  the 
market,  and,  in  addition,  there  is  an  uneasy  feeling 
that  Japanese  intervention  ■in  Siberia  may  tend  to 
create  further  complications.  .\t  any  rate,  it  has  been 
difficult  to  find  much  of  an  encouraging  character  in 
any  corner  of  the  House,  and  for  the  time  being  nearly 
all  the  developments  may  be  designated  as  in  restraint 
of  trade.  The  purchase  of  over  a  million  in  bonds  for 
cancellation  by  the  Japanese  Government  had  little 
effect  in.  preventing  a  further  decline  in  the  other 
stocks.  Canadian  Pacifies  were  not  helped  by  the 
annual  statement  showing  a  big  advance  in  the  ex- 
ipense  ratio,  and  the  Argentine  market  was  depressed 
by  the  Central  Railway  announcemt?nt.  It  has  been 
a  poor  time  for  dealers  all  round,  but  they  are  a 
sanguine  people  in  "  the  Street." 

It  has  been  an  exceedingly  dull  week  on  the  Stock  Exchange, 
partly,  no  doubt,  owing  to  the  fact  that  the  Tank  campaign  is 
still  attracting  a  large  proportion  of  the  investment  money 
which  would  otherwise  have  found  its  way  to  the  floor  of  the 
"House."  In  addition,  the  situation  in  Russia,  and  the 
probability  of  complications  owing  to  Japanese  intervention, 
have  had  a  restraining  influence,  and  nearly  all  sections  have 
suffered  from  an  apathetic  attitude  on  the  fiart  of  the  public. 
Gilt-edged  securities  were  fairly  steady,  and  except  for  a  slight 
decline  in  India  stocks,  movements  were  quite  unimportant. 
Colonials  were  scarcely  mentioned,  and  in  the  Foreign  market 
Japanese  gave  way  rather  persistently,  but  the  1905  issue  im- 
proved a  fraction  on  the  announcement  that  over  ;/^i, 000,000  of 
the  bonds  had  been  purchased  for  cancellation.  Russian.^ 
rallied  slightly  on  the  statement  that  the  next  coupon  would 
be  paid,  and  Spianish  Fours  were  well  supported,  owing  to  the 
substantial  improvement  in  the  exchange.  One  or  two  Argen- 
tine issues  also  advanced,  but  Chinese  bonds  nearly  all  gave 
way  a  jxiint  or  more. 

Home  Railways  began  with  a  fairly  firm  appearance,  but 
almo,9t  immediately  relapsed  into  complete  neglect,  and  finished 
weak.  In  the  American  market,  Chesapeakes  put  on  a  couple 
of  points,  and  International  Mercantile  Marine  also  showed 
up  to  advantage,  otherwise  scarcely  an3rthtng  occurred.  Cana- 
dian Pacifies  were  rather  depressed  on  the  annual  statement 
which  has  just  been  issued  for  the  past  calendar  year,  show- 
ing a  very  marked  increase  in  the  expense  ratio.  Trunks 
were  weak  on  poor  dividend  estimates,  and  Mexicans  also 
gave  way.  Argentine  Rails  sagged  persistently,  and  the  Cen- 
tral Argentine  dividend  announcement,  with  its  warning  about 
the  prospects  for  the  current  half-year,  did  not  tend  to  help 
matters. 

Bank  shares  received  very  little  attention,  and  except  that 
the  tone  was  dull,  very  little  of  interest  happened.  Among 
Breweries,  Guinness  stock  fell  rather  sharply,  but  most  of  the 
others  were  steady,  although  business  was  at  a  very  low  ebb. 
Egyptian  securities  became  exceedingly  flat,  and  in  the  Gas 
and  Electric  section  South   Metropolitan  Gas  gave  way  several 


March  i6,  1918. 


Zbc  Jnvestots'  IRevtew, 


279 


Consols... 
War  Loan 


3i% 

4% 

5%   1929-47. 

4%,  l9'9-42. 


India  3% 

„     3i(% 

Australian  5j%,  1920-22 
Canada  4%,  1940-60  .... 

.>       4j%. '920-5  

N.S.W.  4%.  1933 

Argentine  4% ,  1900  .... 

Belgian  3% 

Brazil,  1913 

,1       5%.  1914    

Chinese  1896  

,.       1912 

Egypt  Unified  4% 


Caledonian  defd. 

Gt.  Central  pta 

dfd 

Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorlis 

London  Brighton  defd. 
London  Chatham  ord.. . 


Last 
Weel< 


54X 
86J 
looi 
93A 

102 
545  X 
63X 

9H 
So 

93} 
82J 


70 
81 
92 
79 
86 

8! 
% 

344 

343 

834 

63 

55J» 

H 


Week, 


Canadian  Pacific  

E.  Indian  Guar.  44  %  debs. 
Grand  Trunls  orcl.    

Do.  isl  pf 

Do.  3rd  pf 

Antofagasta  dfd 

Brazil  Common 

B.  A.  &  Pacific 

B.  A.  Gt,  Southern 

B.  A.  Western    

Anglo-South  American   . . 

Banlt  of  Australasia 

Bank  of  N.S.  Wales 

Barclay  &  Co.  "  A  " 

Do.       "B" 

Capital  &  Counties   

Chartered  of  India    

Hongkong  &  Shanghai    . . 

Lloyds  

London  &  Brazilian 

Armstrong,  Whitworth  .. 
Biripingham  Small  Arms 

Cammell-Laird 

Cargo  Fleet 

Dorman,  Long  

Associated  Cement 

Borax  dfd 

Bovril    

BraEil  Traction  

British  Amer.  Tobacco  pf. 

British  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Ketlner 

Coats 

Courtaulds 

Cunard 

Dennis  Bros 

Eastern  Telegraph   

ISastmans 

English  Sewing  Cotton  .. 

Anglo-Egyptian  "  B 

Baku  (los.) 

Burmah 

Lobitos 

Maikop  Pipeline  . . 
Mexican  Eagle  pf... 

Allagar2/- 

Anglo-Java  Rub.  2/-     

Anglo-Malay  2/ 

Ayer  Kuning  £1 

Batang  Malaka  2/- 

Bekoha/- 

Brit.  N.  Borneo  Trust  £1 

BukitCloh2/- 

Bukit  Kajang;^! 

Bukit  Mertajam  2/- 

Bukit  Sembawang  2/-  ... 

Carey  United  jf  I  

Ceylon  Para  2/-  .....   ... 

Chersonese 

Cheviot  2/-  

Dalkeith  2/- 

Eastern  Invest.  Trust  £1 

Grand  Central  £1 

Gula  Kalumpong  £1 

Highlands  £1 

Java  Investment  £t 

Java  Para  £1  

Johore  Rubber  Lands  £1. . 

Kamunin ;  2/- 

Kinta  Kellas  2/- 

Kuala  Kubu.2/-  

Labu2/- 

Langen  Java  £i 

Linggi2/- 

London  Asiatics/- 

Malacca  £1 

Malayalam  £i 

Merlimau  2/-   

Padang  Jawa  2/- 

Pataling  2/- 

Abbontiakoon  (10/-).... 

Becliuanaland  Exp 

Brakpan  

Broken  Hill  Prop.  (8/-) 

Cam  &  Motor 

Central  Mining  (£12)  .. 

Chartered    

City  Deep      

Cons.  Gold  Fields    .... 

Cons.  Langlaagte , 

Crown  Mines  (10/-J  ..... 
De  Beers  did.  (£2  lot.) 

East  Rand   

Geduld 

Gov.  Areas  Mod     


161 

84 


■33 
5. 


68 

7J 
119 
36 

iij 

25i 
724 
83X 
23f 

254 

42/ 
56/ 

6i 
26/3 
39/ 


534 
86? 
looj 
93  iV 
102J 
54 
63 
99 
80 
94 
824 

674 

624 

70 

81 

89 

76 

87 

8| 
12J 

6| 

343 
83 

H 
55 
8i 

160J 

**, 
83 

504 
20l 
•33 
5 
384 
68| 
664 
8 

ll6x 
36 

"i 
254 
724 
83 
23J 
254 
43/ 
58/6 

25/9 
38/6 


N.S.W.  44%syr.bds 

,1      44%.  i9"-7 

„        5%,  1921-3 

5i%.  1920-2  .... 

New  Zealand  4%,  1929    . . 

Queensland  4% 

44%.  '920-5   .. 
Union   of  S.  Africa  44%, 

1920-5     

Victoria  44%.  1920-5 

Westn.  Aus.  4%    

French  War  Loan,  5%  . . 

Japan  44%  (ist),  1905   

5%.  1907 

Mexican  5%,  1899    

Russia  4  % 

i>      44%.  '9"9 

„      5%,  igo6 

London  and  N.-W 

London  and  S.-W.  dfd.  . . 
Do     red.  pf.  1914 

Metropolitan 

Do.        5%      pf.. 

Met.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastern  

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern ... 


Last 
Weeh 


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San  Paulo  { Brazilian) .... 

United  of  Havana 

London  City  &  Midland. . 
London  County  &  Wesfc. . 

London  Joint  Stock 

Nat.  Prov.  otEng.(£io4  pd) 
Do.  (£12  pd) 

Parr's    

Standard  of  S.  A 

Union  Discount 

Union  &  Smiths 


Kynochs   

Mond  Nickel  ord 

South  Durham  Steel 

Thornycroft    

Vickers 


1« 

1M 

19/ 

39/6 

20/3X 

20/3 

443 

44 

18/6 

18/6 

31/ 

31/ 

32/ 

3'/9 

i2 

'+« 

35 

3ft 

6x 

6 

1% 

7H 

4ti, 

15/6 

35/9 

1514 

'514 

"/ 

10/9 

54/ 

54/ 

Fine  Cotton  Spinners  .... 

ForestalLand 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay     

Imperial  Tobacco  *  C  '  pf . 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  &F 

P.  ScO.dfd 

Royal  Mail  

Underground  inc.  Bds.  .. 


35/3 
1/9 

7 

>M 

2/ 

63/3 

3/14 
6/4 
13/1 
43/6 
4/5 

4/'4 
■■71 

5/ 
71/3 
4/l4 
3/'4 
4  3/ 
9/3 
3/2 

5/74 


34/ 
1/6 
63 

'« 
2/ 

63/ 

3/ 
5'9 
12/ 1  of 
42/6" 
4/2 
4/ 

'6/9 
4/9 
67/6 
4/14 
3/ 

41/3 
9/3 
3/ 
5/5 


North  Caucasian  . 
Roumanian  Cons., 

Shell 

Spies  (10/-) 

Ural  Caspian 


2/104 

2/74 

25/9 

«5/9 

27/ 

27/ 

35/ 

35/ 

55/ 

55/6 

26/9 

26/ 

39/6 

28/9 

30/3 

30/ 

3/74 

3/64 

I/.0 

4/ 

2/74 
9/3 

2/6 

8/6 

4'/3 

35/ 

25/S 
7/loJ 

24(74 
7/9 

51 

5 

37/6 

33/9 

,■!/ 

5/ 

3/74 
42/ 

3/74 
40/ 

4/'4 

4/0 

7/6 

7/3 

5X 

5 

67/6X 

68/9 

11/6 

I1/6 

6fl, 

64 

15/ 

15/ 

2^X 

f 

36/6 

18/1 

17/9 

ilx 

■+* 

I2I 

i4 

579 

5/9 

2<^X 

384* 

2A 

3ft 

IPerak2/-   

I  Port  Dickson  2/-   

!  Rub.  Estates  Johore  £1. 
j  Rub.  Estates  Krian  2/-. .. 

I  Rubber  Trust  £1 

I  Sampang  (Java)  2/- 

Sapumaikande  £1     

Seaport  £1 

Selangor 

Sengat  2/- 

Seremban  £1 

Shelford  £1 

Sialang  £1   

Singapore  Para  2/-    

Singapore  United  2/-    ... 

Soember  Ajoe  2/- 

Stagbrook  £1 

Straits  Bertara  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  £1  

Sungei  Kapar  2/-   , 

Sungei  Kruit  £1 

Taiping  2/-  , 

Tali  Ayer  £1  

Tandjoiig  £1  , 

Tandjong  Malim  £1 

Tebrau  £1  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdang  2/- 

United  Sumatra  2/- , 

Vald'Or  2/- 

Vallambrosa  2/- 

Way  Halim  1/8  pd , 


Gt.  Boulder  (2/-)    .... 

Kyshtim    

Mashonaland  Agency 
Meyer  &  Chariton    . . , 

Modder  "  B  " , 

Do.    Deep 

Mysore 

Rdud  Mines  (5/-)   ,,.., 

Rio  Tinto{£5)   

Russo-Asi  (tic 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep  


974^ 

974 
984 
864 
79X 
924" 

924 
924x 

794 

763 

93 

87 

57 

344 

374 

474 

89X 

22^X 

95X 

2'4x 

744x 

15 

55ix 

I34x 

934x 

27ix 

5S 

194 


57 
38 

'9, 
I83i 

73i 
8 
'5 
284 
264 
294 
32 


26 

4«/6 
34 
42/3 
4'/ 
44/6 

35/ 

48/ 

66/ 
23 
74 

33/6 

20/ 
3fS 
3A 

■9/ 

16/6 

3394 

123 

80X 

a 
9/ 

5.H 

5/6 
« 

7/6 
4/ 

42; 

3/44 

26/3 

2/4 

26/6 

25' 

32/ 

3/1 
40f 
36/3 
59/6 
4/ 

3/14 
2/6 
33/ 
6/3 
8/ 
37/ 
10/ 

49/ 

4/14 

34/ 

80/ 

31/6 

60/ 

41/6 

2/44 

10/6 

8/ 

3/'o4 

22/ 


13/ 

6/ioi 
5ft 

^7f 


Week 


3ftx 


r 


974 
92 

97* 
93* 
864 
79 
924 

924 

92S 
79* 

758 
92 
84 
57 
344 
394 
494 
88i 

22 

7:1 

■44 
54? 
J3i 
933 
278^ 

62 
■94 
26J 


56* 
373 
18 
■83 
75 
7i 
■  5 
284 
364 
29J 
32 


26 

42/6 
3A 
42/6 
i'l 
44/9 
34/6 
48/6 
65/ 

7I* 
33/6 
20/ 

4 

3i 
■8/3 
16/6 

■i 
3354 
122 

794 

H 

8/6 

6 
5/6 

i» 

6/9 
3/ioJ 

39/ 

3/3 
26(3 

2/3 

25/ 
26/6 

30/ 

3/1 
37/6 
36/3 

61/ 
3/ioi 

3/ 
2/6 

33/ 

5/6 
7/6x 
36/3 
10/6 
49/ 
3/'0 
35/ 
79/ 
31/6 
59/6 
39/ 
2/44 
10/x 
8/ 
3/6x 
20/74 


points,  probably  in  anticipation  of  Ihe  Parliamentary  Bill 
having  to  be  withdrawn.  Iron  and  Steel  shares  were  very 
irregular,  and  except  for  gains  in  Can.adian  Car  and  Foundry 
and  Otis  Steels,  the  changes  were  unimportant.  Among  Land 
shares,  Pekin  Syndicates  were  weak  in  sympathy  with  the  un- 
settled condition  of  affair  in  the  country,  and  the  other  pro- 
minent members  of  the  group  were  completely  neglected. 
Nitrate  shares  were  dull,  and  in  the  Shipping  division,  Cunard, 
Indo-China,  and  Royal  Mail  all  lost  ground,  but  dealings  were 
very  scattered  and  unimportant.  Amongst  Miscellaneous  Indus- 
trials, Marconis  were  firm  on  the  case  against  the  Post  Office 
at  last  finding  its  way  into  court.  Callender's  Cable  improved 
smartly  on  the  bonus  proposals,  and  Kynochs  were  prominently 
firmed.  Courtaulds  lost  a  small  fraction,  but  Coats  were  well 
supported,  and  there  was  also  considerable  business  doing  in 
Lyons,  Liptons,  and  other  Catering  shares. 

Oil  shares  generally  have  been  extremely  weak,  and  Bur- 
mahs  were  very  prominent,  probably  owing  to  the  recent  de- 
velopments in  the  Caucasus  and  the  threat  against  Persia. 
The  shares,  however,  closed  above  the  worst.  "  Shells  "  were 
dull,  and  Venezuelan  Concessions  also  lost  ground.  Rubber 
shares  were  persistently  on  offer,  and  the  better  class  of  invest- 
ment securities  suffered  more  than  the  speculative  counters. 
Golden  Hopes,  Harpendens,  and  some  of  the  other  heavy  shares 
fell  back  sharply,  and  the  whole  list  shows  considerable  re- 
cessions from   last   week's  level. 


LONDON    PRODUCE   MARKETS. 


Sugar, — Quotations  remained  unchanged,  while  allocations; 
were  on  a  fair  scale,  chiefly  of  home  refined. 

Coffee, — The  market  for  future  delivery  proved  quiet,  but  spot 
parcels  met  with  good  support  at  firm  prices,  while  keen  competi- 
tion prevailed  for  fine  liquoring  sorts  offered  in  auction  at  very  full 
rates.  East  India  Mysore,  sold,  at  132s.  ;  and  Costa  Rica,  fine 
bold  colory,  137s.  to  139s,  ;  Salvador,  ditto,  127s. 

Tea. — 52,534  packages  were  balloted  for  this  week,  comprising 
Indian  and  Ceylon.  Buyers  cannot  often  get  the  tea  requisite  for 
their  particular  trade,  while  deliveries  continue  slow  owing  to  trans- 
port difficulties.  The  National  Tea  Control  scheme  with  the  flat 
rate  of  2s  8d.  per  lb.  will  be  in  force  next  week,  so  that  the  best 
Assam  and  Darjeeling  growths  will  be  at  the  same  price  as  dust, 
though  usually  worth  2s.  6d.  to  3s.  per  lb.  more  money. 

Cocoa. — Moderate  supplies  at  public  sales  encountered  active 
competition  at  generally  dearer  prices.  Trinidad  sold  at  92s,  to  g4S.  ; 
Dominica,  gis.  to  93s,  6d.,  and  St,  Thom6  (in  prize),  93s.  6d- 
Privately,  West  African  sold  at  62s,  to  70s,  Cocoa  butter  in  steady 
demand,  with  sales  at  2S.  per  lb. 

Spice. — Pepper  firmer  with  a  fair  business  in  black  Singapore, 
spot  basis,  fair,  at  is.  ^d.  ;  and  Muntok  white,  2s,  id.  Zanzibar 
cloves,  spot,  2s.  3d.  Tapioca  firmer.  Fair  flake,  spot,  sold,  7jd. 
to  8Jd.  ;  fair  Penang  seed  pearl,  77s.  6d. ;  medium,  76s. ;  and  fair 
small  sago,  at  77s.  6d, 

Rice, — Beans  and  peas  in  good  request. 

Shellac— Values  are  very  firm,  but  only  small  sales  occurred 
in  fair  T.N.  orange,  spot,  at  460s.;  while  AC.  garnet,  named 
vessel,  sold  at  325s.,  c.f.i.  Owing  to  Government  action  trade 
since  at  a  standstill. 

Rdbber. — Market  fully  steady,  and  a  fair  business  transpired, 
including  plantation  creoe,  spot,  at  2S.  5jd.  ;  April-June,  2S.  6d. 
to  2s.  6Jd. ;  July-December,  2S.  7d.  to  2s.  7jd. ;  smoked  ribbed 
sheet,  spot,  2S.  4|d.  to  2S.  jd. ;  fine  hard  Para,  spot,  2S.  8d.  to 
2S.  7Jd.  per  lb. 

Corn  (Mark  Lane),— A  quiet,  but  steady,  tone  prevailed  in  all 
departments  of  this  market  during  the  past  week,  and  quotations 
show  no  alteration.  Wheat  •.  Of  imported  descriptions  dealings 
were  confined  mainly  to  No.  i  and  2  Manitoba,  at  8is  6d.  and  80s. 
respectively.  Australian  nominal  at  83s.  6d.,  and  Plate  8is,  6d. 
Flour:  Canadian  export  patents,  51s.  gd.,  landed.  English: 
Country  straight  runs,  44s.  3d.  per  sack,  ex  mill.  Oats:  American 
white,  clipped  No.  2,  6is.  6d.,  landed  ;  English,  46s.  3d.  Barley 
nominal.  Maize  remains  stationary  on  continued  absence  of  oflers. 
Maize  meal :  White  and  yellow  rule  at  64s.  6d. ;  and  63s.  6d. 
respectively. 

Cotton  (from  our  Manchester  correspondent). — The  general 
tone  of  the  market  this  week  has  been  stronger  than  ever,  and, 
although  a  large  business  has  not  been  done,  the  undercurrent  of 
demand  has  been  healthy,  and  for  anything  wanted  very  full  rates 
have  had  10  be  paid.  There  has  again  been  distinct  evidence  of 
producers  having  the  upper  hand  over  buyers.  Fluctuations 
have  occurred  in  American  cotton  rates,  but  quotations  in 
yarn  and  cloth  have  been  firmly  held,  and  are  now  based  on 
the  position  of  spinners  and  manufacturers  rather  than  on  changes 
in  the  New  York  and  Liverpool  markets.  There  have  been  rumours 
of  Egyptian  cotton  being  lost  on  the  sea,  and  prices  have 
advanced.  The  general  state  of  the  market  has  tended  to  be- 
strengthened  by  the  further  restriction  of  output  from  the  beginning 
of  next  week,  decided  upon  by  the  Cotton  Control  Board.  A 
rather  increased  inquiry  has  been  met  with  in  cloth  for  India, 
but  much  difficulty  has  been  experienced  in  arranging  trans- 
actions. Scattered  sales,  however,  have  been  put  through  in 
light  fabrics  and  printing  cloths.  The  bids  mentioned  in  grey 
shirtings  have  been  impracticable.  The  offtake  for  China  has 
again  been  disappointing,  with  occasional  transactions  in  heavy 
goods,  such  as  Mexicans.  The  general  demand  for  the  minor 
markets  and  the  home  trade  has  been  encouraging,  especially 
in  printing,  dyeing,  and  finishing  materials,  which  continue 
to  do  better  than  grey  staples.  Further  contracts  have  been 
reported  for  the  French  Government  in  heavy  cloths.     Americaa 


28o 


XTbe  Jnvestots'  1Revtew» 


March  i6,  1918. 


yarns  for  home  use  have  hardened  in  price,  and  in  some  quarters  a 
considerable  trade  has  been  done.  Many  spinners,  however,  have 
declined  to  quote,  and  the  question  of  supplies  is  becoming  more 
acute  than  ever,   the   market  as  a   whole   being  bare  of  stocks. 


CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK  ENDING    MARCH  15,  igi8. 

Last 

Ibts 

Last 

This 

~                 Week. 

Week. 

~ 

Week. 

Week. 

floter— per  cwt., 
duty   14/.    98% 

i   s.    d. 

t    s.  d, 

Wool— per  lb. 
Australian 

t  s.d. 

£   s.d. 

polarisation 

Scoured  Merino 

nom. 

nom. 

Tate's  Cubes      . . 

»  13    9 

»  «3    9 

Scoured  Cr'ssbr'il 

nom. 

nom. 

Cmsbed 

2  13    9 

»  >3    9 

Greasy  Merino    .. 

nom. 

notn. 

Granulated  ..     .. 

2    6    g 

269 

Greasy  Ccossbced 

nom. 

nom. 

Lyie's  granulated 

269 

269 

New     Zealand! 

Foreign        granu- 
lated, first  macks 

(sconced)  Merino 

nom 

nom. 

Greasy  Crossbred 

nom. 

nom. 

f.o.b.,  spot 

nom. 

nom. 

Cape  snow  white 

nom. 

nom. 

CetmanCubel.o.b. 

nom. 

nom. 

French  Cube 

Indlarabberp.lli 

Plantation,      Spot 

prompt 

CrjBlalllsed,  West 

India 

nom. 

Dom. 

Crepe 

0    2    5l 

0     3      6 

269 

269 

Bael,   88%    f.o.b. 

nom. 

nom. 

Goal— pec  ton 

Durham,  best     .. 

nom. 

nom. 

I«»— pec  lb., duty 

Indian  Pekoe      ,. 
Broken    ,, 
Orange    „ 

s.d.  s.  d. 

s.  d.  s  d 

Seconds        ..     .. 
Bast  Hartlepool.. 

nom. 
nom. 

nom. 
nom. 

nom. 
nom. 
nom. 

nom. 
nom. 
nom. 

Seconds       ..     .. 
Steams,  best 
Seconds       ..     .. 

nom. 
32    6 
29    6 

nom. 

326 

29  6 

Broken    ,, 

nom. 

nom. 

Pekoe    S:iucbong 

nom. 

nom. 

Lead- perton. 

£     s.  d 

£    s.  d. 

Ceylon  Pekoe     . . 

nom. 

nom. 

English  Pig..       . 

nom. 

nom. 

Broken    ,, 

nom. 

nom. 

foreign  solt.  net 

£S9J-£28J 

£s9j-£28i 

Orange    „ 
Broken               . . 

nom. 
nom. 

nom. 
ncm. 

Outoksllver— per 

Pekoe  Souchong 

nom. 

nom. 

bottle  ficslhand 

nom. 

nom. 

Cocoa  — per  cwt. 

duty  6d.  per  lb. 

Trinidad — per  cwt 

,    d.  s.d. 

s.  d.  s  d. 

Tin — per  ton 

87  0-  99  0 

87  0  -990 

iinglisb  Ingots     . 
l3o.     bars         .. 

£iio-£i24 
h"-£3i5 

|324-£326 

Grenada       . ,     . . 

J2  D-  88  0 

8j  c  -68  0 

Standard  cash    .. 

£3  "9 

£320 

Weal  Afrio 

52  6-  70  0 

62  6  -70  0 

Tin  Plates, per  box 

nom. 

nom. 

Ceylon  Plantation 

77  0-  92  0 

79  0  -95  0 

Copper— per  ton. 

English,     Tougb, 

perton      ..     -- 

Best  Selected    . . 

Sheets 

Standard      ..    .. 
Jute— per  ton. 
Native    brsts    for 

CoayaqullAriba.. 

Coffee— per    owt. 

duty  4a/- per  cwt. 

Bast  India    ..    .. 

lamaioa 

Costa  Rioa  ..    .. 
Provlalont— 

II0/-H2/ 

iio-o  131-0 
79-0  1 51-0 
no-o  J  34-6 

110/-112/ 

115  0  132  0 
79  0  151  = 
1150  lj9  0 

nom. 

£ua-£i23 

r   '^■■'»  , 
£llO-IJ0j 

nom. 
£iio-£i23 

£iio-iioi 

Butter,  per  owt. 
Auin-allan  tinest 

252/ 

252; 

shipment 

nom. 

nom. 

Argentine     . .     , . 

252/ 

252/ 

Olla— 

Rish  Creameries 

nom. 

nom. 

Linseed,  pec  ton. . 

£58 

£58 

Dutch  dliio..    .. 

nom. 

nom. 

Rape,  crude  . . . . 
Cott'n  SeeU.crutlt 

£66 

£66 
260 

Russian  Quest     .. 

nom. 

nom. 

£60 

Paris  baskets      .. 
Danish  finest      . . 

nom 
nom 

nom. 
nom. 

PetcoleumOil.pet 
8  lbs. 

i/7i 
1/8: 

«;7i 

Brittany     rolls  — 
doi.lb 

Water  White      .. 

l/8i 

nom. 

nom. 

Oil  Seeds.Linsee.l 

— 

— 

Bacon- per  owt. 

Calcutta— pel  ton 
Spot 

29  15    0 

29  15    0 

Irish      

Continental,.     .. 

172/ 
172/ 

172/ 
172/ 

Rap 

£29-io£30 

£29-io£30 

Canadian     . .     . . 

171/-172/ 

171/-17J/ 

Iron — per  ton 

American     . ,     . . 
Bams — per  cwt. 

i7i/-:8o/ 

i7i/-ieo/ 

Cleveland  Cash  . . 

Dom. 

Dom. 

Irish       

Canadian      . .    , . 

203; 
162/-165/ 

203/ 

16J/-163/ 

Tobacco  —  duty 
unuianufacturet 
7/4  to  8/0  per  lb 

Maryland  &  Otiio 

American     ,,    .. 

l25;-i65/ 

125/-165/ 

Dutch 

129/6-160/- 

129/6-160/- 

per  lb.  bond    .. 

nom. 
0  8—2    I 

nom. 

Canadian     , .     . . 

nom. 

nom. 

Viiglnialeat. 

08-2    I 

English  Cheddar 

142/ 

142/ 

Kentucky  leal    .. 

0  7 — 0  11 

0  7  -0  n 

Wilts  loaf    ..     .. 

nom. 

nom. 

Latakia 

'  2~l    J 

20-5    0 

New  Zealand      . . 

nom. 

nom. 

Havana 

I  6-6    I 

t  6  -6    6 

Kloe-per  cwt. 
Japan     

«.    d. 
nom. 

s.    d. 
ncm. 

Manila 

Cigars,   duty   10/6 
pec  lb. 

nom. 
2/  upds. 

nom. 
2/  upds. 

Rangoon  2  stars  . . 

26    3 

26    3 

B«i— pec  no. 

Bnglisb 

Irish      

Tlmbor— Wood. 

Pitch  I'ine    . .     . 

300/— 400/ 

J00(— 400( 

36  0-39  0 
34  c-33  0 

34  0  36  0 
J3  6-34  6 

ludian  Teali 

380/- 700/ 

380/—  700/ 

Danish 

nom. 

nom. 

Turpontlno— 

SpelUr— 

Amecicau  Spot  . 

124/ 

"4/3 

G.O.li.  as  to  posi 
tion 

54  0  50  0 

34  0-50  0 

Copra— pec  ton 
Malabac        . .     . 

46    0    0 

46    0    0 

PiOBT- per  sack. 

Ceyion 

46    0    0 

46    0    0 

Country  Straight 

F.M.S.  Siogapoci 

45  »o    0 

45  »o    0 

Rims  ex  Mill . 

44/3 

44/3 

F.M.    Straits     . 

45  10    0 

45  »o    0 

Shippers  of  fine  yarns  to  India  seem  to  have  satisfied  their  more 
important  wants  for  the  time  being.  Egyptian  yarns  are  dearer  on 
the  week.  Free  buying  has  occurred  in  certain  directions,  and 
users  remain  in  a  very  strong  position. 


THE    NEW 
NATIONAL    INDUSTRY 


The  Halifax  Disaster. — The  following  communication  has 
been  received  from  Halifax  (Nova  Scotia)  by  the  London  Office 
of  the  Canadian  Hank  of  Commerce,  dated  February  5  : — 
"  In  an  interview  to-day  with  Mr.  D.  Macgillivray,  Presi- 
dent of  the  Halifax  Board  of  Trade,  he  stated  to  the  repre- 
sentative of  the  Canadian  Press  that  a  great  deal  of  mis- 
conception existed  regarding  the  character  and  extent  of  the 
damage  done  to  Halifax  by  the  explosion  in  that  harbour  on 
December  6,  1917.  It  should  be  borne  in  mind  that  the 
destruction  was  contained  within  comparatively  well-defined 
limits,  for  the  most  part  occupied  by  dwellings.  The  im- 
portant position  of  Halifax  as  a  railway  terminal  and  ocean 
port  for  carrying  on  business  was  unaffected,  and  the  trade 
and  commerce  of  the  city  was  already  flowing  freely  along 
its  foixner  channels." 


New  Methods.    New  Men. 


The  fourth  year  of  the  great  War  finds  the  British  Empire 
as  determined  as  ever,  better  organised,  more  practical,  and 
its  immense  resources  being  utilised  to  greater  advantage. 

War  conditions  have  changed  habits  and  customs  and  trading 
methods,  created  new  industries,  and  in  very  many  important 
particulars  altered  our  views  upon  business  generally. 

By  far  the  most  important  industry  developed  during  the 
War  is  the  aircraft  industry,  and  already  it  has  been  fully 
demonstrated  that  this  country  has  achieved  superiority  in 
its  output  of  aeroplanes,  efficiency  of  the  machines,  and  the 
daring  of  the  men  who  serve  them. 

Many  men  of  authority  are  of  opinion  that  the  War  is  to 
be  won  in  the  air.  There  can  be  no  two  opinions  that  the  side 
which  has  a  great  preponderance  of  aircraft  is  going  to  win 
the  War. 

This  is  a  war,  not  between  armies,  but  between  nations,  and 
every  citizen  is  a  potential  combatant.  In  no  other  sphere  is 
this  more  true  than  in  connection  with  fighting  in  the  air. 

It  may  not  be  possible  for  every  individual  to  pilot  an 
aeroplane  or  to  work  in  an  aircraft  factory,  but  it  is  given  to 
most  people  to  be  able  to  support  those  who  are  fighting  in  the 
air   01   those  who  are  "  delivering   the  goods." 

Enormous  demands  are  being  put  upon  the  resources  of  air- 
craft manufacturing  companies,  and  the  great  capacity  for  out- 
put demands   ample  capital  for  wages  and  materials. 

The  British  public  are  shortly  to  be  given  their  fiist  oppor- 
tunity to  supply  additional  capital  by  becoming  Ordinary 
shareholders  in  a  joint-stock  Company  exclusively  engaged  in 
producing  aeroplanes. 

Whitehead  Aircraft,  Limited.  The  Treasury  have  sanc- 
tioned the  issue  of  the  capital  of  this  Company  up  to 
^i,oou,ooo,  which  capital  is  to  be  used  in  building  aeroplanes 
to  beat  the  Germans. 

The  name  of  Whitehead  has  already  established  for  itself 
a  world-wide  reputation  as  a  result  of  its  contribution  towards 
helping  to  win  the  War. 

Whitehead  Aircraft  enterprise  is  a  development  of  the  War. 
and  already  the  Company  owns  many  acres  of  manufacturing 
fluor-space,  has  thousands  of  employees  engaged  exclusively 
on  the  manufacture  of  aeroplanes,  with  a  correspondingly  large 
weekly  wages  bill. 

This  new  capitai  will  greatly  accelerate  the  output  and  in- 
crea36  our  superiority  in  the  air. 

The  investing  public  will  be  given  the  first  direct  opportunity 
to  become  financially  interested  in  the  Ordinary  share  capital 
of  a  Company  exclusively  engaged  in  aircraft  work,  which  will 
enable  investors  to  participate  in  winning  the  War  and  to 
secure  a  permanent  investment  of  a  remunerative  character. 

Aviation  being  destined  to  play  an  immensely  important  part 
in  the  commercial  life  of  civilised  nations,  however,  aircraft 
shares  have  the  advantage  of  being  those  of  a  war  industry 
with  immense  possibilities,  and  immediately  peace  is  proclaimed 
and  normal  conditions  prevail,  the  development  of  commercial 
aviation  will  give  the  shares  a  permanent  investment  character. 
As  soon  as  peace  comes,  it  is  certain  that  the  mails  between 
the  principal  cities  of  Europe  will  be  conveyed  by  aircraft, 
whilst  aviation  will  be  regularly  used  for  the  rapid  transit  of 
hght  merchandise  and  wealthy  passengers. 

Capital  invested  in  a  progressive  aircraft-manufacturing 
company  should  be  highly  remunerative,  entirely  irrespective 
of  the  duration  of  the^Var. 

It  is  in  these  circumstances  that  Whitehead  Aircraft,  Limited, 
will  appeal  with  confidence  to  the  British  public  to  provide 
additional  capital. 

Those  investors  desiring  particulars  should  make  application 
to   Whitehead   Atscjiaft,   Limited,    Box  No.    7,   c/o  Thk  In 

VESTOBS'   RKVIKW. 


March  i6,  1918. 


^be  Jnvestove'  IReview^ 


281 


The  Week  in  Minos. 

The  chief  incident  in  the  Mining  markets  this  week  has  been 
the  activity  and  buoyancy  of  Nigerian  Tin  shares.  This  has 
been  due  to  the  high  price  ruling  for  the  metal,  namely,  over 
;^32o  per  ton,  and  the  prospect  of  the  excess  profits  duty  per- 
centage being  raised  on  an  appeal  to  the  Board  of  Referees. 
A  general  and  appreciable  advance  is  shown  in  these  shares. 
In  other  departtpents  the  tone  has  been  generally  dull,  with 
business  on  a  very  small  scale. 

South  and  West  Africans. 
The  South  African  market  has  again  been  under  the  inPai- 
ence  of  the  unfortunate  effects  of  the  recent  floods.  The  Rand 
profits  for  February  aggregate  ^^582, 000,  a  decrease  of 
^105,000,  which  follows  upon  a  decrease  of  ^^97,000  in  January. 
Modder  Leases,  however,  have  been  in  demand,  on  the  expecta- 
tion that  the  report  of  the  Public  Accounts  Committee,  which 
is  adverse  to  the  modified  sliding  scale  agreement,  may  not  be 
adopted  by  the  Government,  but,  in  sympathy  with  the  genetal 
tendency,  the  shares  are  3-32  lower  at  3  19-32.  Rand  Mines 
at  2{i  show  a  similar  decline.  New  Modderfonteins  have  fallen 
i  to  23,  Rand  Selections  i  to  4-^,  and  Heriot  }i  to  i.>§.  On  the 
other  hand,  Modder  Deeps  have  risen  i^^  to  7^^,  and  H.E. 
I'roprietarys  is.  6d.  to  9s.  on  the  acquisition  of  a  property 
.south-west  of  the  Sub-Nigel  property.  Rhodesian  shares  have 
been  on  offer,  notably  Lonely  Reefs,  which  have  fallen  is.  bd. 
to  33s.,  and  Eldorados,  which  are  is.  lower  at  6s.  gd.  Diamond 
shares  have  been  dull,  with  De  Beers  deferreds  at  12%  and 
Tremier  deferreds  at  7^.  Among  West  African  Gold  descrip- 
tions, Ashanti  Goldfields  have  declined  to  20s.  gd.,  but  Amal- 
gamateds  have  been   supported  at   22s. 

Copper  and  Miscellaneous. 
Copper  shares  are  mostly  lower  on  the  week.  Arizonas  de- 
clined ^^  to  2-1%  on  the  report  showing  the  effect  of  the  growth 
of  American  taxation  on  profits  available~for  dividend.  Rio 
Tintos  have  declined  i  to  64,  Mount  Elliotts  i  to  3I,  and 
Hampdens  is.  to  29s.  6d.  Broken  Hills  have  moved  irregu- 
larly. British  Proprietarys  have  advanced  is.  to  39s.  gd., 
and  Block  Tens  J^  to  iff ;  but  Proprietarys,  on  profit-taking, 
have  relapsed  23.  to  66s.  Buying  of  Nigerian  Tin  shares  has 
been  fairly  persistent  all  the  week,  and  tije  advance  in  prices 
includes  a  rise  of  is.  gd.  to  7s.  3d.  in  Champions,  of  is.  6d. 
to  22s.  6d.  in  Forum  Rivers  and  Jantars,  of  is.  3d.  to  gs.  6d. 
in  Kwalls,  of  is.  to  13s.  6d.  in  Naraguta  Extendeds,  of  is.  3d. 
to  17s.  6d.  in  Nigerian  Corporations,  of  is.  to  13s.  6d.  in 
Rayfields,  and  of  is.  6d.  to  14s.  in  South  Bukerus.  Aramayos 
have  advanced  j4  to  i||,  and  Mawchis  2S.  to  17s.  gd.  On  the 
other  hand,  Renongs  have  fallen  i  to  2^  on  the  withdrawal  of 
the  third  dredge  from  operation,  owing  to  the  difllculty  of 
obtaining  spare  parts.  This  is  a  reminder  of  the  difficulties 
which  many  oversea  properties  will  experience  in  an  increas- 
ing degree  for  the  rest  of  the  war  period.  Russian  shares  have 
weakened,  Irtyshs  falling  -i.  to  1-^5-  on  news  that  the  pro- 
perty had  been  nationalised.  Mining  Corporations  of  Canada 
have  declined  is.  6d.  to  i6s.,  but  Camp  Birds  have  ri.sen  6d.  to 
8s.  3d.  Westralians  have  recovered  slightly  from  their  recent 
depression,   Ivanhoes  being  ^  higher  at   i|. 

MINING    NEWS. 

Transvaal  Gold  Proddction.— The  production  of  gold  in 
February  amounted  to /■2, 802, 477,  a  decrease  of  /26i,4g9  on  the 
same  month  of  last  year.  The  total  is  the  smallest  for  four  years 
which  is  the  result  of  the  floods  and  the  high  level  of  costs.  The 
ollowing  table  shows  the  monthly  production  since  January,  igi3  :— 


Month. 


January  , . 
February.. 
March  .... 
April  .... 
May 

June 
uly  

August .... 
September 
October  . . 
November 
December 


Totol.. 


•9'3' 


£ 
3,353,116 

3,"8,325 
3,358,050 
3>334,35» 
3.373,998 
3,173,382 
2,783,917 
3,092,754 
2,999.686 
3,051.701 
2,860,788 
2,857,938 


37,358,040 


1914. 


£ 
2,708,470 
2,660,186 
2,917,346 
2,904,924 
3,059,340 
3,049,558 
3,111,398 
3,024,037 
2,982,630 
3,116,754 
3,040,677 

2.932,755 


35,588,075 


1915. 


£ 
3,037,058 
2,872,406 
3,202,514 
3,160,651 
3,243,347 
8,208,224 
3,272,258 
3,307,975 
3,299,423 

3i38S,U2 
3.317,534 
3,317,949 


38,627,461 


1916. 


£ 
.344 
3,201 
3,384: 
3,205, 
3.303. 
3,235. 
3,232. 
3,318, 
3,277, 
3,365, 
3,326, 
3,289,: 


39,484,934 


1917. 


191S. 


£ 
3,324,418 
3,063,976 
3.343,363 
3,155,121 
3,310,618 
3,227,101 
3,219,094 

3>2i4,»79 
3,135.837 
3.191,279 
3,070,426 
3,068,639 


38,321,921 


£ 

3,033.653 
2,802,477 


5,836,130 


Native  Labour  Retijrns.— A  further  appreciable  improvement 
s  skown  in  the  labour  supply.  The  total  shows  an  increase  of 
4,526,  the  gold  mines  getting  4,632  more  labourers. 


Month. 


February,  1917 

March  

April 

May    

June  

July    

August 

September  .... 

October 

November  .... 
December  . . . . , 
January,  1918... 
February  


Natives 
on  Gold 
mines. 


191,095 
190,028 
185.975 
180,168 
175,727 
r7i,653 
170,817 
17',334 
170,331 
169,083 
172,740 
176,424 
181,066 


Natives 
on  Coal 
mines. 


11,598 
11,494 
11,435 
11,432 
11,258 
11,381 
11,401 
11,601 
11,841 
11,633 
11,695 
11,469 
11,243 


Natives 


Diamond 
Mines. 


Total 
natives. 


6,268 
6,620 
6,314 
5,805 
5.369 
5,223 
5,02s 
4,791 
4,620 
4,620 
4,593 
4,715 
4,825 


208,931 
208,142 
203,724 
■97,405 
192,354 
188,257 
187,246 
187,726 
186,792 
185,336 
189.02& 
192,608 
197,  H4 


Pknkikvber  Navigation  Colliery.— This  company,  like  most 
colliery  concerns,  has  not  done  so  well  during  the  past  year, 
but  the  results  are  quite  satisfactory.  After  allowing  for  all 
charges,  the  surplus  is  ;i'32,6oo,  against  ;^49,2oo,  and  the  ordi- 
nary shareholders  again  get  15  per  cent.,  and  the  preference 
shareholders  7^  per  cent.,  or  2^  per  cent,  more  than  their  fixed 
cumulative  interest.  The  tarry  forward  is  reduced  from 
;^26,3oo  to  ;^2i,4oo.  Much  less  information  is  given  in  the 
accounts  than  formerly,  and  it  is  difficult  to  follow  some  of 
the  changes  that  have  been  made  in  the  balance-sheet,  but 
there  appears  to  have  been  some  heavy  writ'ngs  down,  for 
the  reserves,   amounting  to  ;^6i,2oo,  have  disappeared. 

Great  Western  Colliery. — The  report  for  1917  shows  that> 
after  writing  off  ;^'i5,ooo,  or  ;^5,ooo  less,  for  depreciation,  the 
profits  amounted  to  ,^^121, 305,  against  ;£i8i,239.  A  sum  of 
;f3o,ooo,  against  ^^50,000,  is  plated  to  reserve  for  improve- 
ments and  developments,  and  it  is  proposed  to  pay  a  final 
dividend  of  is.  per  share  on  preference  "A"  shares,  and  23. 
per  share  on  ordinary  "  B  "  shares,  making  15  per  cent,  for 
the  year,  as  against  20  per  cent,  for  1916,  and  .rf53,876  is  cai- 
ried  forward,  against  ;i^52,57i  brought  in.  The  output  of  coal 
was  1,016,981  tons,  and  the  make  of  coke  ;^'i25,526  tons,  a.* 
compared  with  967,885  and  125,798  tons  respectively.  Develop- 
ment of  the  new  pits  has  been  hindered  by  war  conditions, 
but  work  is  proceeding  gradually. 

North's  N.wig.vtion  Collieries. — This  company  also  re- 
ports a  decrease  in  profits  for  1917,  but  they  were  nevertheless 
on  a  satisfactory  scale.  After  providing  for  excess  profits 
duty,  the  nett  profits  were  ;£i29,972,  against  ^160,456  in  1916, 
;^i30,07i  in  igi5,  and  ;^65,578  in  1914.  Nothing  is  placed  to 
reserve,  which  last  year  got  ;^35,ooo,  but  the  shareholder;, 
again  receive  20  per  cent.,  against  12J  per  cent,  for  1915,  and 
the  carry  forward  is  raised  from  ;^i  1,023  '°  ;^''5,995- 

Tin  Fields  of  Northern  Nigeria. — The  report  for  the  year 
ended  March  31,  1917,  is  somewhat  belated,  but  it  contains  a 
surprise  in  the  shape  of  the  declaration  of  a  dividend  on 
account  of  the  current  year  of  10  per  cent.  This  is  due  to  an 
expansion  in  production,  105  tons  of  tin  concentrates  having 
been  obtained  in  the  10  months  ended  January  31,  as  against 
only  66  tons  in  the  preceding  12  months.  Operations  in  the 
year  to  March  31  resulted  in  a  surplus  of  p/^'i,6oo,  which  has 
been  applied  in  reducing  past  expenditure. 

Messina  (Transvaal). — The  report  for  the  year  ended 
June  30  shows  that  the  production  of  copper  amounted  to  5,111 
tons,  and,  after  making  allowance  for  depreciation  of  plant 
and  machinery,  the  gross  profit  was  ^278,161,  as  compared 
with  ,^^270,433.  Out  of  this  amount  debenture  interest  absorbed 
;f  15,000,  ^^36,357  was  absorbed  in  payment  of  dividend,  No.  3, 
of  IS.  per  share.  South  African  taxes  take  ;^4o,o7i,  and  de- 
benture redemption  ;^35.ooo.  Including  ;^6,654  brought  in, 
;^i56,687  is  carried  forward,  pending  the  determination  of 
the  company's  liability  for  excess  profits  duty.  In  the  current 
year  the  company's  results  are  not  likely  to  be  so  favourable, 
because  since  September  the  costs  of  production  and  transport 
have  risen  considerably,  and  the  price  of  best  selected  copper 
has  declined  ^f  10  12s.  per  ton.  Owing  to  these  factors  and  the 
lower  grade  of  the  ore  reserves,  the  profits  at  the  present  time 
are,  in  fact,,  greatly  reduced.  The  ore  reserves  were  estimated 
at  June  30  at  173,727  tons  of  practically  proved  ore,  having  a 
value  of  3.68  per  cent,  copper,  and  94,720  tons  of  "  possible 
ore,"  assaying  3.23  per  cent,  copper. 


DIVIDENDS     ANNOUNCED. 


Attaree  Khat  Tea. — Interim  7^  per  cent.,  less  tax,  payable 
March    20,   igi8. 

Assam  Oil  Company. — Final  for  1917  of  3^  per  cent,  on 
preference   shares. 

Alfred  Goslett  and  Co. — 12J  per  cent,  on  ordinary  and  cumu- 
lative preference  shares.  A  year  ago,  6  per  cent,  on  both 
classes  of  shares. 

Bordubi  Tea. — Interim  7^  per  cent.,  less  tax,  payable 
March  8. 

Baraoora  (Sylhet)  Tea  Company. — Interim  5  per  cent.,  less 
tax,  on  account  of  1917. 

Bargang  Tea. — Interim  10  per  cent.,  less  tax,  payable  at 
once. 

Bell's  Transvaal. — 5  per  cent. 

Balijan  Tea. — Interim  6  per  cent.,  less  tax,  on  account  of 
season  191 7,  payable  on  March   ig. 

Borelli  Tea. — Interim  5  per  cent.,  less  tax,  payable  March  29. 

Behubor  Company. — Interim  5  per  cent.,  less  tax,  on  account 
of  season  191 7. 

Bengal  Dooars  Railway  Company. — Final  on  ordinary  stock 
of  '3^  per  cent,  and  bonus  of  2  per  cent.,  both  subject  to 
English  income-tax  at  3s.  gd.  in  the  £,  and  payable  on  April  12, 
making  totaT  distribution  of  9  per  cent,  for  year  ended  Sept.  30, 
1917,  against  8  per  cent. 

Brompton  and  Kensington  Electricity  Supply  Company. — 
Final  6  per  cent.,  making  10  per  cent,  for  year,  less  tax.  For 
igi6,  g  per  cent. 

California  Petroleum  Corporation. — i  per  cent.,  payable 
April  I,  on  preferred  stock. 

Colchester  Brewing  Company. — Interim  as.  on  ordinary 
shares,  payable  April  3. 

Calgary  and  Edmonton  Land  Company. — First  interim  for 
igi8  of  4d.  per  share,  less  tax,  payable  March  27. 

Dangan  Rubber. — Interim  5  per  cent,  for  year  to  June  30 
next,  payable,  less   tax,  on  April   15. 


282 


XLbc  Jttvestors'  IRevtew. 


March  i6,  1918. 


Dhendai  Tea.— Interim  5  per  cent.,  less  tax,  payable  at  once. 
Dangan  Rubber  Company  (1913).— Interim  5  per  cent,  on 
account  of  year  ending  June  30,  less  tax,  payable  on  April  15. 
Direct  Spanish  Telegraph  Company.— At  rate  of  6  per  cent, 
per  annum  on  ordinary  shares  (making  5  per  cent,  for  the 
year  1917)  for  half-year  ended  December  31,  payable  on  April  i 
next,  and  bonus  of  a  per  cent,  for  year  1917,  free  of  tax.  tor 
tQi6,  the  same. 

D.  II.  Evans  and  Co.  Founders'  Shares  Company.— 2s.  4d. 
per  share,  less  tax. 

General  Commercial  Investment  Trust.— At  rate  of  7  per 
cent,  on  deferred  stock  for  past  six  months,  making  si  per 
cent,   for  year,  the  same  as   a  year   ago. 

W.  T.  Glover  and  Co.— For  1917,  5  per  cent,  and  2^  per 
cent,  bonus  on  ordinary  shares.     For  1916,  6  per  cent. 

Jong-Landor  Rubber  Estates.- Interim  5  per  cent,  (is.)  per 
«hare,  less  tax,  payable  on  April  5,  the  same  as  a  year  ago. 

Jones  and  Higgins. — At  rate  of  17  per  cent,  per  annum  for 
six  months  ended  February  20,  making  12  per  cent,  for  year, 
against    ic   per   cent. 

Kacharigaon  Tea. — Interim  y%  per  cent.,  less  tax,  payable 
at  once. 

Kern    River    Oilfields   of    California. — Interim    4    per    cent., 
being  at  rate  of  8  per  cent,  per  annum,  payable  on  April  15. 
Lambert  Bros. — Interim  5  per  cent.,  the  same  as  a  year  ago. 
Malayan  Tin  Dredging. — Interim  is.  per  share  (less  tax),  the 
same  as  a  year  ago. 

Majuli  Tea. — Interim  7J4  per  cent.,  less  tax,  payable 
March  29. 

Moabund  Tea. — Interim  7J4  per  cent.,  less  tax,  payable 
March   29. 

Milwaukee  and  Chicago  Breweries. — Final  3  per  cent.,  mak- 
ing 6  per  cent,  for  year  to  Sept.  30,  payable  on  March  28, 
against  7  per  cent,   for  previous  year. 

Minneapolis,  St.  Paul  and  Sault  Ste.  Marie  Railway  Com- 
pany.— Semi-annual  at  rate  of  3^  per  cent,  on  preferred  and 
common   stocks,   payable  on  April   ic, 

Mysore  Gold  Mining  Company. — Balance  for  1917  of  2S.  6d. 
per  share  (less  tax),  against  3s.  6d.,  making  a  distribution  for 
the  year  at  rate  of  85  per  cent.,  against  95  per  cent. 

Manila  Electric  Railroad  and  Lighting  Corporation. — 1^  per 

cent.  ($1.50  per  share)  for  quarter  ending  March  31  on  common 

stock,  the  same  as  a  year  ago,  payable  in  New  York  on  April  i. 

National   Trust   Co.,   Toronto. — Quarterly   at   rate  of   10  per 

cent,   per  annum,  the  same  as  a  year  ago. 

Northern  Nigeria  (Bauchi)  Tin  Mines.— Interim,  less  tax,  of 
12%  per  cent,  on  preference  shares  and  2%  per  cent,  on 
ordinary  shares  for  year  ending  June  30,  ini8,  payable  on 
April  [;. 

Northern   Banking.— For   past  half-year   at   rate  of   13^   per 


cent,  per  annum  on  A  shares  and  6^  per  cent,  per  annum  on 
B  shares,  being  2S.  8d.  and  is.  4d.   respectively,  less  Ux. 

Pegoh,  Ltd.— Final  10  per  cent.,  less  tax,  making  20  per 
cent,  for  year  ended  September  30,  against  25  per  cent,  for 
1915-16. 

Provident  Accident  and  Guarantee  Co.— Balance  15  per  cent., 
making   22}4    per  cent,   for   year,   less  tax. 

Regent's  Canal  and  Dock. — On  capital  stock  for  past  half- 
year  at  rate  of  i  per  cent,  per  annum,  less  tax. 

Rajmai  Tea. — Interim  10  per  cent.,  less  tax,  payable 
March  15. 

Rapajuli  Tea. — Interim  y}i  per  cent.,  less  tax,  payable  at 
once. 

Sheffield  Gas  Co. — For  half-year  ended  December  31  of  5 
per  cent,  on  Class  A,  B.  and  C  stocks,  payable  forthwith. 

San  Paulo  (Brazilian)  Railway  Company. — On  ordinary  sto:k 
5  per  cent.,  making  10  per  cent,  for  1917,  tax  free,  the  same 
as  for   1916. 

Tower  Tea. — iid.  on  ;i"i  preference  shares,  making  is.  8d.  for 
year  (Syi  per  cent.),  and  4d.  on  5s.  ordinary  shares,  making 
fi%d.   for   year   (loj^   per   cent.). 

Tronoh  Mines. — Interim  is.  per  share  (less  tax)  in  respect 
of  current  year,  payable  on  April  6. 

Venesta,  Ltd. — At  rate  of  6  per  cent,  per  annum,  less  tax,  on 
preference  shares  for  six  months  ending  March  31. 

William  Whiteley. — 6  per  cent,  on  ordinary  shares  for  year 
ended    P'ebruary   14 ;   the   same. 

Yokohama  Specie  Bank. — 12  per  cent,  per  annum  for 
the  six  months  ended  December  31  last,  yen  1,000,000  to  re- 
serve, and  yen    2,720,000  carried  forward. 


Tea,  Oil  and  Rubber. 


In  the  week  ended  March  g  the  amount  of  rubber  landed  was 
1,265  tons  and  the  deliveries  were  520  tons;  for  the  previous 
week  the  corresponding  figures  were  1,980  and  616  tons  re- 
spectively, with  the  result  that  stocks  now  stand  at  15,100  tons 
against  10,200  a  year  ago.  All  the  .same,  the  price  of  standard 
rrepe  has  been  harder  at  2s.  5jd.,  but  that  is  because  the  em- 
bargo on  shipment  will  begin  to  take  effect  presently,  and  the 
20  per  cent,  restriction  of  output  is  also  becoming  operative. 
Indeed,  the  February  returns  indicate,  in  many  cases,  a  sub- 
.stantial  falling  off.  At  the  meeting  of  the  United  Serdang 
Co.  last  week,  Mr.  George  CroU  entered  a  very  strong  plea 
for  more  complete  combination  among  producers,  and  he  dis- 
closed the  interesting  fact  that  while  70  per  cent,  of  the  area 
represented  by  the  Rubber  Growers'  Association  had  assented  to 
restriction,  and  thereby  made  the  scheme  binding  on  those  who 
had  provisionally  agreed  to  it,  the  members  of  the  Association 


ONE    HUMORED   AMD    THIRTY-MIMTH    HALF-YEARLY   REPORT    OF 

THE  COMMERCIAL  BANKING  CO.  OF  SYDNEY,  LTD. 


aNCORPORATED    IN    NEW    SOUTH    WALES.) 


Preunted  to  iht  Bhartholden  at  on  Ordinary  Oeneral  Meeting  held  at  the  Head  BanHng  Houte,  Qeorge  Street,  Sydney,  on  SvMday,  29th  January,  1918. 


r ,  JS*,  ^''*''Jo™  submit  to  the  Shareholders  a  Balanoe-aheet  showing  the 

Ijlabllltles  and  Assets  ol  the  Bank  on  the  Slat  December,  1917,  and  Dtesent  the 

foUowing  Report: — 

The  balance  at  credit  ot  Profit  and  Loss,  after  adding  the 
amount  brought  forward,  and  dedaoting  rebate  on  current 
bilis  and  accrued  interest  on  fixed  deposits,  reducing 
premises  account,  paying  Land,  Income  and  other  taxes, 
and  providing  for  bad  and  doubtful  debts  as  well  as 
granting  to  the  OlScers  a  bonus  on  their  salaries, 
amounts  to        £210,254    I    2 


Ont  ot  which  the  Direotott  recommend  the  toUowiog  appro- 
priations :— 

To  payment  of  a  Dividend  for  the  half-year  at  the  rate  of  10 
per  cent,  per  annum  out  of  the  Half-year's  Profits, 
£100,000;  to  Transfer  to  Reserve  Fund,  £60,000 ;  to  Balance 
carried  forward,  £60,254  Is.  2a £210,254    1    2 

OEOROE  J,  COHEN,  Chairman. 


Db. 


LIABIIilTIBS    AHD    ASSBTB.— (Including  London  Branch  to  list  December,  by  Cable.) 


^piUI  ......   £2,000,000  0  0 

Reserve  Fund  ..,„ _ 1,940,000  0  0 

Reterr*  Capital  2.000,000  0  0 

£5,940.000  0  0 

To  Capital  Paid  up £2,000,000  0  0 

Reserve  Fund 1,940,000  0  0 


n  .     .     .      ■  ..                                                 3,940,000  0 

IVotee  In  circulation 12,264  0 

Bills  in  circulation 1445*862  4 

Depoaita  and  other  liabllitlet .'..."V..\"'.""."'.V.\".V.V.'.'.'.'.V.. '.'."'.. '24',809',49J  6 

Profit  and  Lom  Account 210.B54  1 


£30,41  r,873  11  11 


Cb. 


By  Coin,  Bullion,   Australian  Commonwealth 

Notes  and  Cash  at  Bankers £7,288,345    0    6        t  ad 

Money  at  short  call  in  London  1,030,000    0   0 

Short  dated  British  Treasury  Bills 610,000    0    0 

British  and  Australian  War  Loan  Stocks  and 

Government,  Municipal  and  other  Securities    4,269,100    0    0 
Bills  receivable  in  London  and  Remittances 

intransit 2,137,323    7    2 

'  Botes  and  BiUs  of  other  banks    10,651    2    7 

15,345,417  10    3 

BlUs  discounted,  and  other  debts  due  to  the  Bank 14,471,201    1    8 

Bank  premises,  lurniture,  4m,  601,255    0    0 

£30,417,873  11  11 


Dk. 


PROFIT    AND    I.OSS. 


I    d 


To  Dividend  Account  forpaymentofa  Dividend  for  past  haU-year 
at  the  rate  ot  10  per  cent,  per  annum  out  of  the  Half-year's 

Profits 100000    0    0 

Reserve  Fund    60  000    0    0 

Balance  carried  forward .'.".'.'.'.'.".".'.'."'.".'.*.'.".'.' 50254    1    2 


£210,254    1    2 


RBSERVB    FOND. 

1917— 3lBt  December  ?.. 

By  Transfer  from  Profit  and  Losa 


£1,940,000   0    0 
60,000    0    0 


Cb. 


£    s    d 

By  Amount  from  last  halt-year 59,093  13  10 

Profit  for  half-year  ended  31st  Deecmber,  1917   151,160    7    4 


£210,254    1    2 


OEORQS  J,  COHEN,  Chairman. 


H.  B.  MASSIE,  General  Manager. 


L.  A.  PARKER,  Accountant. 


£2,000,000    0   0 
Sydney,  18th  January,  1918. 


We  hereby  certify  that  we  have  examined  the  bills,  compared  the  balances  and  counted  the  coin  in  the  Head  OfBce  of  The  Commercial  Banking  Company 
01  Sydney,  Limited,  and  have  compared  the  returns  ot  the  Branches,  and  have  found  the  same  as  specified  in  the  foregoing  Balance-sheet. 

F,  W.  HIXSON  and  W.  L.  DOCKER   Auditors. 


March  i6,  1918. 


^be  Jnvestors'  IRcvicw. 


283 


only  control  50  per  cent,  of  the  whole  planted  area  of  the 
Middle-  East.  In  other  words,  the  Association  can  only  in- 
fluence about  one-third  of  the  output,  and  it  is  appealing  to 
the  Governments  of  the  Federated  Malay  and  other  States  to 
bring    pressure  on  the   balance   to    fall  into  line. 

It  is  not  often  we  find  ourselves  in  disagreement  with  Mr. 
CroU,  who  has  established  his  reputation  as  one  of  the  great 
leaders  of  the  rubber  industry,  but  we  cannot  follow  him  in  this 
matter.  He  must  know,  as  a  shrewd  business  man,  that  for 
one-third  of  an  industry  to  try  to  impose  its  will  on  the  re- 
maining two-thirds  is  not  only  dangerous,  but  likely  to  prove 
futile.  The  plea  about  restricting  output  in  order  to  release 
tonnage  for  more  urgent  requirements  is  obviously  untenable, 
because  nearly  all  the  tonnage  is  already  commandeered,  and 
the  Shipping  Controller  has  withdrawn  all  shipping  facilities 
for  rubBer  from  the  East  till  May,  and  he  can  continue  the 
prohibition  by  a  stroke  of  the  pen.  If  the  plantations  cannot 
ship  their  goods,  they  would  certainly  be  most  foolish  to  pro- 
duce them,  as  the  trees  provide  by  far  the  best  and  cheapest 
warehouse  accommodation,  while  the  cessation  of  tapping  would 
give  the  opportunity  for  other  useful  work  (weeding  and  im- 
provements) to  be  carried  out  more  vigorously.  We  have 
frankly  admitted  all  that;  the  wisdom  of  the  policy  does  not 
require  demonstration.  But  if  it  is  not  done  voluntarily  by 
prudent  estate  managers,  it  is  most  unlikely  to  succeed  b>*any 
process  of  compulsion  imposed  by  a  minority  of  one  in  two. 
Each  company  differs  in  its  immediate  requirements  from  every 
other,  and  to  try  to  lay  down  hard  and  fast  rules  for  all  is 
bound  to  fail.  Can  Mr.  Croll  give  any  example  of  successful 
control  in  raising  prices  of  an  agricultural  product  for  which 
there  is  practically  an  unlimited  area  for  development? 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 

Period. 


Gross 
Pro6t. 


Aberdeen  Combworks  Co.! 
(Dec.)l 

Do Prev. 

British  Assets  Trust  .(Jan.); 

Do Prev.j 

Bruce.  Peebles  &  Co.  (Dec.)  j 

Do Prev.j 

City  Property  Investment! 
Trust  Corptn.  ..(fan.) 

Do Prev. 

D.  Napier  and  Son  (Sept.) 

Do Prev, 

Globe  Shipping  Co.  (Dec.) 

Do Prev. 

Grand  Hotel  Co.,  Bristol 
(Dec.) 

Do Prev. 

Harrow  and  Stanmore  Gas 
(i-Dec.) 

Do Prev. 

H.  Williamson   ....(Dec.) 

Do Prev. I 

Isle  of  Man  Steam  Packet 
(Dec.)! 

Do Prev.l 

Learoyd  Bros.  &  Co. (Jan.)' 

Do Prev. 

Limmerand  Trinidad  Lake! 

Asphalt  Co (Dec.) 

Do Prev. 

Liverpool  Exchange  Co. 
(Dec.) 

Do Prev. 

Mortgage  Co.  of  the  River 

Plate (Dec.) 

Do Prev. 

Newcastle  -  upon   -  Tyne 
Electric  Supply  (Dec.) 

Do Prev. 

New  London  Brwry.  (Dec.) 

Do Prev. 

.    Richard  Irvin    and    Sons 
(Dec.) 

Do Prev, 

Richmond  Gcis  Stove  and 

Meter    (Dec.) 

Do Prev. 

Seaham  Harbour  Dock 

(Dec.) 

Do Prev 

Tyneside    Electr ical 
Development   ..(Jan.) 

Do Prev 

Vyse,  Sons  and  Co.  .(Dec.) 

Do Prev 

Western  Ranches  and  In 
vestment  Co.  ..(Nov.) 

Do Prev 

West  of  Scotland  American 

Investment.  Co. (Dec.) 

Do Prev 


Nett 
Profit. 


70,090 
70,310 
26,240 
26,240 

1 7,000 
15.970 


I5>i70 
28,560 

6,480 
3.350 

47.250 

39,000 

149,700 

120,540 

38,100 
40,140 


38.340 
37.360 

35.350 
33.190 

138,330 
131,800 

309.780 
263,950 

103,570 
48,110 


Total 
Re- 
serves. 


13,910 
14,880 
24,9201 
23,260; 
14.580 
".930 

8,790 

8.340 

129,500 

76.850 

10,040 

7,720 

5.950 
2,850 

8,330 

8,I2» 

67,060 
46,830 

30,840 

30.330 
26,946 
27,710 

17.650 
16,070 

19,000 
17.380 

73.630 
68,630 

129,170 

103,700 

18,040 

13,110 

65,890 
82,900 

43,220 
34.940 


9,860      4,910 
15,660      7,940 


Divi- 
dend. 


Carried 
For- 
ward. 


59.350 
49,180 

24.350 
30,630 


24,000 

22,000 

165,000 

165,000 

nil 

nil 

13,016 
13,010 
60.000 
40.000 
15.500 
20,000 

9,000 
6,750 

6,320 

6,130 

5,000 

15,000 

403,760 

271,300 

45,000 

40.000 

6,000 
6,000 

10,780 
10,380 

465,000 
450,000 

316,600 

32,010 

1,850 

1,850 

70,000 
60,000 

70,000 
65,000 

nil 
nil 


4,290  4,500 

3,430  3,500 

42,740!  85,000 

33.170  75.000 


11,210 
15,250 


25,290    12,460 
25,440    12,490 


115,000 
109,140 

39.000 
36,500 


16 
16 
17 
17 
nil 
nil 

7i 

7 
i7i 

6 

32i 
25 

14 

nil 

5i 
5i 
5 
5 

10 
10 
15 
15 

74 
74 

3i 

3l 

20 
20 


7 
nil 
nil 

15 
15 

10 
10 

nil 

nil 

10 
10 

"4 
10 

7 
7 

9 
9 


1,140 

1,100 

10,440 

14,480 


What    Balance    Sheets   Tell. 


2,530 

2,030 

18,740 

9.550 

920 

630 

1,000 
280 

4.350 
3.650 
5.900 
3.440 

10,830 
10,330 
11,680 
12,250 

5.820 

4.250 

3.590 
2,030 

52,260 
46,130 

8,460 

7.430 

16,230 

9.520 

3.140 
23.150 

10,600 
6,920 

390 
6,700 

750 
930 

17.150 
16,610 

3.330 
4,140 

700 
1,060 


LINEN     THREAD     CO.,     LTD. 

This  very  prosperous  concern  does  not  provide  its  share- 
holders or  the  public  with  a  surfeit  of  information  about  its 
affairs,  but  so  far  as  can  be  judged  everything  is  healthy.  For 
the  year  to  September  30  last  nett  profits  were  ;^284,200,  an 
increase  of  ;f8,ooo,  and  ^45,000  more  was  brought  in.  The 
dividend  of  6  per  cent,  and  bonus  of  5  per  cent.,  tax  free, 
are  repeated,  but  the  appropriation  to  reserve  is  doubled  at 
;^ioo,ooo,  raising  the  total,  to  half  a  million,  and  the  balance 
forward  is  increased  by  ^s.ooo  to  ^243,000.  The  capital  is 
heavy — ;,^3, 760,000,  including  debentures — but  the  financial  posi- 
tion looks  very  strong,  and  one  of  these  days  the  ordinary 
shares  will  doubtless  receive  a  handsome  bonus  in  the  shape  of 
a  share  distribution  or  in  some  other  form,  but  the  manage- 
ment evidently  prrfers  to  err  on  the  safe  side.  It  is  rather 
interesting  to  note  that  the  unsalaried  directors — how  many 
there  are  in  tliis  category  out  of  a  score  is  not  stated— get  the 
extremely  modest  sum  of  ;^2oo  between  them  for  their  year's 
tete. 

DBBENHAMS,  LTD- 
Nett  profits  for  the  year  to  January  31  amounted  to  ^^237, 920, 
or  practically  the  same  as  for  the  previous  12  months.  Divi- 
idends,  so  far  as  disclosed,  absorb  ,^.S7,50O,  providing  6  per 
cent,  on  the  preferred  and  deferred  ordinary  shares,  and  leaving 
about  ,^180,000  to  be  divided  "  in  accordance  with  the  articles 
of  association."  We  have  not  this  interesting  document  to  refer 
to,  but  as  no  mention  is  made  either  in  last  or  this  year's 
report  of  any  balance  brought  in  or  carried  out,  and  as  the 
reserve  fund  amounts  to  the  contemptible  sum  of  ;^26,36o 
against  an  issued  capital  of  a  million,  it  seems  fair  to  assume 
that  profits  are  divided  nearly  up  to  the  hilt,  and  that  the 
;if  100,000  deferred  shares  get  the  bulk  of  them.  However,  the 
deferred  holders  have  agreed  to  place  ^^25,000  to  a  special 
reserve,  so  we  should  judge  that  the  directors  are  beginning  to 
be  just  a  trifle  uneasy  about  the  position.  Debtors  and  stock 
together  do  not  much  exceed  the  amount  owing  by  the  company 
(^^1,250,000),  and  there  is  only  ;^io.'5oo  cash  in  hand.  It  does 
not  look  very  pretty. 

CANNON    BREWERY    CO.,    LTD. 

Like  nearly  all  other  breweries,  the  Cannon  had  a  most 
successful  year  to  December  31,  the  nett  profits  showing  an 
increase  of  ^^84,000  at  ;/r282,7oo.  Consequently  the  directors 
repeat  the  dividend  of  16  per  cent.,  tax  free,  on  the  deferred 
ordinary  (equal  to  4  per  cent,  on  the  original  stock),  and  in 
addition  pay  a  bonus  of  20  per  cent.,  also  tax  free.  This 
leaves  ^'53,160,  or  ;^4,ooo  more,  to  be  carried  forward.  Apart 
from  this  surplus,  the  reserves  amount  to  only  ;^76,ooo,  against 
a  capital  of  35  millions,  and  we  are  certainly  of  opinion  that  it 
would  have  been  more  prudent  to  strengthen  them  very  sub- 
stantially 

BENTS    BREWERY    CO.,    LTD. 

Nett  profits  for  last  year  are  arrived  at  "  after  payment  of 
excess  duty  to  1916,  and  provision  for  1917,"  so  that  no  exact 
comparison  is  possible  with  previous  results.  The  figure  is 
given  as  ;£^7o,38o,  an  apparent  decrease  of  ;^i4,ooo,  but  ;if9,ooo 
more  wasTjrought  in,  and  the  directors  feel  justified  not  only 
in  repeating  the  dividend  of  5  per  cent.,  less  tax,  but  in 
giving  a  bonus  of  5  per  cent.,  tax  free.  As  usual,  /i4,ooo  is 
written  off  for  depreciation  of  properties,  and  ^2,000  is  again 
placed  to  contingencies  fund,  leaving  /ig.ooo,  or  .,^3,000  less, 
to  be  carried  forward.  It  is  a  well-managed  business,  and  the 
balance-sheet  has  a  healthy  appearance,  but  the  changes  call  for 
no  remark. 

WOOLCOMBERS,     LTD. 

Results  for  the  past  year  are  very  similar  to  those  of  1916. 
Gross  profits,  it  is  true,  increased  ;fio,ooo  to  ^^144, 250,  but 
the  nett  profit  is  only  a  trifle  better  at  /6i,68o.  Consequently 
the  dividend  of  2s.  3d.  per  share  is  repeated,  and  the  directors, 
following  their  usual  conservative  policy,  again  put  ;^40,ooo 
to  reserve  fund,  raising  it  to  ^200,000,  as  against  an  issued 
capital  of  ^^260,000.  There  then  remains  £(>,-joo,  or  ;^i,400 
more,  to  carry  forward.  The  company  has  plenty  of  cash 
resources,  and,'  as  it  has  been  very  liberal  in  writing  off  depre- 
ciation,  its  position  is  very  sound. 


BONDS   CANCELLED. 


IMPERIAL  JAPANESE  GOVERNMENT 

41  PER  CENT.  STERLING  LOANS  OF  1905. 

The  Yokohama  Specie  Bank,  Limited,  London,  announces  that 
£310,000  44  per  cent.  Sterling  Bonds  of  the  1st  Series,  and 
^190,000  44  per  cent.  Sterling  Bonds  of  the  2nd  Series,  have 
been  purchased  on  behalf  of  the  Imperial  Japanese  Government 
for  the  purpose  of  cancellation,  and  the  said  Bonds  are  now 
cancelled.  , 

The  quantities  and  denominations  of  the  Bonds  so  cancelled  are 
the  following  : — 

First  Series—  Second  Series— 

8    of    /500  584   of    /200 

937    of     /200  568   of   ;flOO 

of   h 


L186 


flOO 


820  of      £20 


London,  I5th  March,  1918. 


284 


XT  be  Jnvestovs'  TReview. 


March  16,  1918. 


COMPANY  MEETINGS. 


UNION   OF   LONDON   AND   SMITHS    BANK, 

LIMITED. 

THE     AMALGAMATION      I'KOl'OSAL      UNANIMOUSLY 

ADOPTED. 

THE   rRINCII'LE  OK  BANK  I'USIONS. 

Advantagks  of  Combination. 

An  extraordinary  general  meeting  of  the  proprietors  of  the 
Union  of  London  and  Smiths  Dank,  Ltd.,  was  held  on  Monday 
at  the  Cannon  Street  Hotel,  to  consider  and  if  approved  to 
adopt  the  following  resolutions  : — 

(i)  That  it  is  expedient  to'  effect  an  amalgamation  of  this 
company  with  the  National  Provincial  Bank  of  England,  Ltd., 
and  that  with  a  view  thereto  this  company  be  wound  up  volun- 
tarily, and  that  Frederick  Eley  and  William  Henry  Sidebotham 
be  and  they  are  hereby  appointed  liquidators  for  the  purpose  of 
such  winding  up,  with  power  to  act  in  all  matters  severally  as 
well  as  jointly. 

(2)  That  the  conditional  agreement  submitted  to  this  meeting 
be  and  the  same  is  hereby  approved,  and  that  the  liquidators 
be  and  they  are  hereby  authorised,  pursuant  to  Section  192  of 
the  Companies  (Consolidation)  Act,  i(p8,  to  adopt  the  said 
agreement  and  carry  the  same  into  effect,  with  such,  if  any, 
modification  as  the  said  liquidators  may  think  expedient. 

Sir  Felix  Schuster,  Bart.,  the  governor,  presided. 

The  Secretary  (Mr.  H.  R.  Hoare)  having  read  the  notice  con- 
vening the  meeting, 

The  Governor  said  :  Ladies  and  Gentlemen, — In  putting  before 
you  the  proposals  which,  on  behalf  of  a  unanimous  board,  I 
now  have  the  honour  to  submit  for  your  approval,  your  directors 
are  fully  conscious  of  their  importance  and  significance,  and 
I  need  not  assure  you  that  it  was  only  after  the  most  careful 
consideration  from  every  point  of  view  that  we  decided  to  con- 
clude the  conditional  agreement  with  the  National  Provincial 
Bank  of  England,  Ltd.,  to  which  we  now  ask  your  assent.  I 
may  say  at  once  that  for  some  time  past  we  had  come  to  the 
conclusion  that  .some  such  step  was  desirable,  if  not  indeed 
necessary,  if  we  wished  to  maintain  to  the  full  the  efficiency  of 
our  bank,  to  keep  it  in  the  first  rank,  and  to  serve  both  our 
customers  and  our  shareholders  to  the  best  of  our  powers. 
(Hear,  hear.)  When  the  opportunity  for  this  alliance  presented 
Itself  we  felt  that  every  effort  .should  be  made  to  arrive  at  an 
arrangement  that  was  fair  and  equitable  to  both  parties,  and 
this  I  believe  we  have  done,  and  I  hope  to  be  able  to  show  you 
its  advantages  to  the  shareholders,  to  our  customers,  and  also 
to  the  public.  To  go  very  fully  into  the  question  of  bank 
amalgamations  generally  would  take  a  considerable  time;  I 
think  each  must  be  judged  on  its  own  merits.  (Hear,  hear.) 
The  advantages  in  this  case  are  iso  obvious  that  I  do  not  think 
I  need  detain  you  very  long.  The  agreement  which  vou  are 
asked  to  sanction  has  been  open  for  the  inspection  of  share- 
holders for  the  last  fortnight.  It  is  necessarily  of  a  legal  and 
technical  nature,  and  I  think  it  best  that  its  provisions  should 
be  explained  to  you  by  our  solicitor,  Mr.  Coward,  before  I  make 
any  observations  on  the  general  effect .  and  purpose  of  the 
amalgamation.  I,  therefore,  now  ask  Mr.  Coward  to  address 
you. 

Mr.  Coward  (solicitor  to  the  bank)  explained  the  terms  of 
the  provisional  agreement. 

The  National  Provincial  B.ank. 

The  Governor  :  Before  proceeding  further,  I  may  as  well 
My  a  word  or  two  about  the  National  Provincial  Bank  of 
England.  In  my  speech  to  the  shareholders  on  January  30 
I  described  it  as  a  pioneer  bank,  and  that  is  true  in  every 
sen.se  of  the  word,  for  it  is  the  oldest  joint-stock  bank  now  in 
the  Clearing  House.  Although  it  entered  the  Clearing  House 
i(t  a  somewhat  later  date,  the  bank  was  established  in  1833,  the 
London  and  Westminster  in  1834,  the  London  Joint  Stock  Bank 
m  1836,  and  the  Union  Bank  of  London  in  1839.  Unlike  the 
London  banks,  the  National  Provincial  Bank,  as  its  name  im- 
plies, made  the  provinces  its  centre  of  activity,  and  gradually 
established  branches  in  most  of  the  leading  towns  of  England 
and  Wales.  It  attained  its  present  magnitude  not  through 
amalgamations,  for  it  absorbed  only  a  few  banks  of  moderate 
size,  and  its  growth  is  entirely  due  to  natural  development  and 
careful  selection  of  localiti^,  and  throughout  the  kingdom 
there  IS  not  a  bank  that  stands  higher  in  repute.  (Hear,  hear.) 
1  ne  figures  for  the  last  25  years  show  continuous  progress.  In 
1S93  the  deposits  amounted  to  ;^4i,8oo,ooo,  ten  years  after  to 
upwards  of  jf  50,000,000,  after  another  ten  years  to  /67,8oo,ooo. 
and  last  December  to  /m2,6oo,ooo.  During  that  period  the 
numDer  of  branches  and  agencies  has  increased  from  166  to 
iiL  T,^*  <l'^><len<ls  paid  during  that  time  until  the  begin- 
v«l  *l  "^^^  "^"^  °^''"  ^^^^  t^"  '7  per  cent.;  in  sSme 
ih^^  vt^  '*'"*  v"""^,:  ^*  ^^^  °"'y  after  the  outbreak  of  war 
Hiv  :ilnH  f^f  °'^"  ''^"''''  ^^^y  t''°"g'"  it  *'^"  to  '•educe  the 
fore   IfforM  P'^'*'"^  l'*^.  ***  '^  P"  «"*•     This  rate,  there- 

^ve  come  ^^  '"'  ^''^  arrangement  to  which  we 

GbOWTH     of    DF.POSITS. 

nArTT"''''"  *'"'  u"'  "*"  P'^^S'""'^  ^"""S  the  same  period 
aJ^  >  T  "°'  ^  ""'  °f  P'^^*^-     ^'  'he  end  of  1893  our 

upon    ;f34  000,000     but    this    large    increase    was    in     a    great 
measure  due  to   the   amalgamations    with   the    various    Smiths 

f ht    K    ^''r  p*  \"l"''-  '^'  ^'""^°"  »""  Yorkshire  Bank,  and 
the    Kentish   Bank,   but    ten    years   after,    without   any  further 


purchases  of  banks,  the  depositi;  had  risen  to  ;^4 1 ,000,000,  and 
at  the  end  of  last  year  they  had  reached  ^62,818,000.  (Hear, 
hear.)  'Iwenty-five  years  ago  the  number  of  our  branches  was 
ten;  at  the  end  of  191 7  the  number  was  227.  Our  dividend  in 
1893  was  at  the  rate  of  10  per  cent.  ;  in  1895  it  was  only  9  per 
cent.  Duiing  the  years  before  the  war  it  was  at  the  rate  of 
12  per  cent.,  which  was  reduced  to  10  per  cent,  during  tlie 
war.  We  now  ask  you  to  exchange  ten  of  your  Union  of 
London  and  Smiths  Bank  shares  for  nine  in  the  National 
Provincial  Bank.  The  name,  as  you  have  noticed,  is  to  be 
altered  to  the  National  Provincial  and  Union  Bank  of  England. 
Ltd.,  a  name  perhaps  long— it  is  open  to  criticism  in  that 
respect— but  it  was  neces»;iry  to  preserve  the  identity  of  both 
banks  as  far  as  possible,  and  I  may  here  remark  that,  although 
for  the  sake  of  brevity  it  has  been  found  necessary, to  omit 
the  name  of  Smith,  there  is  every  intention  to  preserve  the 
identity  of  all  the  establishments  of  the  bank  with  which  that 
name  has  been  so  long  and  so  honourably  connected.  (Hear, 
hear.)  It  will  be  part  of  our  policy  to  maintain  local  boards 
and  local  directors  and  to  retain  the  characteristics  of  all  the 
old-established  private  firms  who  formed  part  of  our  great 
institution  ;  in  fact,  we  may  claim  that  this  is  a  fusion  of  one 
of  the  oldest,  if  not  the  oldest,  of  the  joint-stock  banks  with  an 
institution  representing  some  of  the  oldest  and  most  honoured 
private  banking  firms. 

Dividends  :  The  Combined  Capitals  and  Reserve  Funds. 
The  effect  of  the  exchange  of  shares  will  be  that  if  the  divi- 
dend of  16  per  cent,  is  maintained  there  will  be  an  immediate 
increase  over  the  dividend  received  during  the  last  few  years 
by  the  Union  of  Ixmdon  and  Smiths  Bank  shareholders  of 
something  over  i  per  cent.  (Hear,  hear.)  The  shares  of  the 
National  Provincial  Bank,  which  you  are  asked  to  take,  are  of 
£(k>  each  with  /■12  credited  as  paid  up.  £40  of  the  liability 
being  reserve  liability,  and  as  the.  liability  on  our  own  old 
shares  was  ^84  10s.,  the  result  will  be  a  reduction  in  the  liability 
of  our  shareholders  of  a  little  over  ^^41  per  share — (hear,  hearl 
— in  respect  of  each  Union  Bank  share  the  callable  liability 
under  the  proposed  exchange  will  be  £7  4s.,  against  ^^34  los. 
formerly;  the  reserve  liability  £;^t),  against  ,^50.  Although  we 
directors  have  never  attached  any  great  importance  to  tb« 
liability  on  our  shares,  yet  there  is  no  doubt  that  a  share  with 
a  smaller  liability  finds  a  readier  market  and  is  more  popular. 
(Hear,  hear.)  The  paid-up  capital  will  be  ^'5, 476,884.  and  the 
reserve  fund  ;^4,ooo,ooo.  It  would  be  idle,  indeed  foolish,  on 
my  part  if  I  were  to  attempt  to  prophesy  as  to  the  future, 
especially  in  these  times,  but  I  can  say  this :  we  have  gone 
very  carefully  into  the  earning  power  of  the  combined  institu. 
tion,  based  on  the  averages  of  a  number  of  years,  and  there 
is  a  very  ample  margin  over  the  dividend  of  16  per  cent,  which 
has  been  taken  as  the  basis.  I  feel  confident,  therefore,  that 
while  securing  an  immediate  small  increase  in  the  dividend. 
our  shareholders  will,  if  times  are  fairly  prosperous,  have  a 
much  better  prospect  of  further  increases  than  would  have  been 
the  case  if  this  amalgamation  had  not  come  about,  if  only  for 
this  reason,  that  the  reserve  fund  in  the  Union  of  i  ondon  and 
Smiths  Bank  amounts  to  only  about  32  per  cent,  of  the  paid-up 
capital,  and  in  the  amalgamated  bank  it  will  amount  to  73  per 
cent.,  and  thus  upon  any  large  surplus  earnings  becoming 
available,  contributions  to  the  reserve  fund  would  have  been 
desirable  on  a  much  more  ample  scale  than  will  now  be  the 
case. 

TllK.    FlTltRE. 

Quite  apart,  therefore,  from  the  impetus  given  tn  the  business 
through  the  amalgamation  itself  and  fr<Hn  the  increased 
business  which  we  hope  to  derive  therefrom,  and  possibly 
economy  in  management,  I  think  that  with  an  immediate  small 
increase  in  the  dividend  there  is  every  prospect  of  a  further 
improvement  if  times  are  only  fairly  favourable,  whereas  if 
worse  times  should  come  we  shall  [eel  the  effect  less  than  we 
should  otherwise  have  done,  and  whatever  befall,  in  the  future 
development  of  the  country  and  the  process  of  leoonstruction 
that  will  follow  on  the  war,  banking  must  play  a  more  im- 
portant part  than  it  has  ever  done  before,  and  for  this  reason 
it  is  essential  that  banks  should  be  placed  on  a  strong  basis. 
They  will  be  better  able  to  serve  the  public,  and  the  consequent 
advantage  to  the  shareholders  must  be  obvious.  (Hear,  bear.) 
I  have  dwelt  chiefly  on  the  benefits  tc  be  derived  by  our  own 
shareholders  from  this  arrangement,  which,  however,  is,  in 
my  opinion,  equally  beneficial  to  those  of  the  National 
Provincial  Bank — in  fact,  as  I  observed  in  my  speech  on 
January  30,  the  two  institutions  complement  one  another  to  a 
remarkable  degree,  each  being  able  to  supply  important  parts 
to  a  more  complete  organisation.  Whilst  the  advantage  to  the 
shareholders  seems  well  established  it  must  be  equally  obvious 
that  the  customers  also  must  gain  through  the  greater  facilities 
placed  at  their  disposal,  and  especially  after  the  war.  Business 
between  the  metropolis  and  the  provinces  is  interdependent, 
and  we  ourselves  have  felt  that  we  were  placed  at  some  dis- 
advantage as  compared  with  our  neiphbours  through  not  being 
represented  at  some  of  the  great  industrial  centres  throughout 
the  country,  and  while  we  felt  this  during  the  war,  we  should 
feel  it  to  a  greater  extent  after  the  war. 
A  Retrospect. 
The  development  of  branch  banking  during  the  last  25 
years  has  indeed  been  remarkable.  When  I  first  came  into  the 
bank  30  years  ago  there  was  .still  prevailing  in  the  City  a 
certain  prejudice  against  branch  banks.  That  was  the  atmo- 
sphere predominant  certainly  in  the  great  London  banks.  Our 
business  consisted  mainly  of  City  and  West  End  accounts  and 


March  i6,  1918. 


Zbc  Jnvestors'  IReview, 


28s 


the  agency  of  country  and  foreign  banks,  and  a  profitable  and 
safe  business  it  was,  too.  At  that  time  many  customers  had  the 
feeling  that  they  would  rather  deal  with  the  head  office  of  a 
bank  than  with  a  branch^  Hut  the  period  of  change  was  close 
at  hand,  and  I  well  reuitmber  in  those  days— perhaps  some  of 
you  do  also — one  of  Our  old  shareholders.  Dr.  Drysdale,  getting 
up  at  more  than  one  of  our  meetings  and  pressing  on  our 
directors  the  importance  of  opening  new  branches.  It  was  a 
policy  that  the  directors  were  already  carefully  considering 
and  preparing  to  carry  out.  We  found  it  necessary  and  also 
profitable  to  open  throughout  London  a  considerable  number 
of  branches,  our  customers  found  it  profitable  to  use  them,  and 
thus  our  connection  was  retained.  But  other  changes  took 
place  also.  I  think  with  the  purchase  of  two  private  banks  in 
Lombard  Street  by  Lloyds  Bank  in  1884  the  signal  was  given 
for  a  complete  change  in  the  banking  S3'steni  of  the  country. 
Here  was  a  leading  provincial  bank  becoming  a  member  of  the 
Clearing  House.  Others  followed,  and  amalgamations  took 
place  rapidly,  with  the  consequent  loss  to  us  of  many  and 
valuable  country  connections.  I  am  glad  to  say  that  to  this 
day  we  retain  the  agency  of  quite  a  number  of  important 
country  banks  with  whom  we  have  the  most  pleasant  relations 
— and  I  am  happy  to  be  able  to  state  that  we  have  every  reason 
to  anticipate  that  those  pleasant  relations  will  be  retained  in 
every  case  in  the  future — but  a  great  part  of  such  business 
was  lost  through  amalgamations  taking  place  between  our 
clients  and  some  of  our  competitors.  Foreign  banks  also,  for 
whom  we  had  acted  as  agents,  opened  offices  in  London,  and  if, 
in  spite  of  these  circumstances,  we  made  the  progress  which 
I  have  shown  above  from  year  to  year,  it  was  not  without  con- 
siderable effort   and  anxious  thought. 

Previous  Am.ai.g.vm.itions. 
We  found  we  needed  strengthening  in  the  country  as  well  as 
in  town,  and  in  1902  we  were  so  fortunate  as  to  secure  the 
businesses  of  the  various  Smith  firms,  an  amalgamation  which 
was  described  at  that  time  as  the  biggest  ever  undertaken.  In 
1903  we  further  extended  our  sphere  through  the  purchase  of 
Prescott's,  the  London  and  Yorkshire  Bank,  and  'the  Kentish 
Bank.  We  have  never  been  actuated,  nor  are  we  now,  by  any 
mere  desire  to  show  big  figures.  What  we  have  proceeded  to 
do  was  on  strictly  geographical  lines,  and  we  chose  localities 
where  we  thought  it  would  be  most  useful  to  us  to  be  repre- 
sented. But  good  banking  businesses,  as  going  concerns,  arc 
not  always  to  be  obtained  on  fair  terms,  and  we  opened  branches 
in  places  where  no  such  opportunity  offered.  Thus  graduallv 
the  number  of  our  offices  grew  to  the  figure  I  have  named, 
but  the  opening  of  new  branche-s  and  bringing  them  to  a  profit- 
able stage  is  somewhat  slow,  and  especially  in  the  centres  of 
industry,  where  competition  is  keen,  it  is  an  expensive  pro- 
cess. We  had  to  proceed  step  by  step,  but  even  during  the  war 
we  have  acquired  premises  in  various  places  which  we  have 
not  been  able  to  open  owing  to  other  demands  on  our  staff. 
Through  the  proposed  amalgamation  we  mw  obtain  what 
we  have  so  long  desired,  and  our  customers  will  have  the  full 
.benefit  of  finding  a  branch  of  the  bank  in  nearly  every  im- 
portant business  centre.  We  know  that  there  has  been  discus- 
sion about  the  policy  of  amalgamations  generally,  and  that 
a  committee  has  been  appointed  to  consider  the  subject.  As 
far  as  our  own  action  is  concerned,  I  think  it  can  be  fullv 
iustified  from  every  point  of  view.  It  is  not  a  step  which  will 
lesser]  comnetition  among  the  banks  or  reduce  the  number  of 
hanking  oflSce.'^.  for,  as  I  told  you  at  our  last  meeting,  out  of 
-<x)  offices  which  the  joint  institution  will  have,  there  are 
only  35  places  where  we  meet,  and  even  in  those  the  premises 
are  frequently  located  at  some  distance  from  one  another,  so 
that  both  offices  will  be  useful. 

"  \o  Striving  After  Monopoly. ". 
There  is  no  striving  after  monopoly  on  our  part — far  from 
it— and  my  belief  is  that  the  growth  of  a  certain  number  of 
large  banks  to  the  dimensions  we  now  see,  and  which  certainly 
one  could  hardly  have  anticipated  a  few  years  ago,  will  tend 
to  increase  rather  than  to  diminish  competition.  Anything  in 
the  nature  of  banking  monopoly  would  indeed  be  disastrous, 
but  so  far  I  do  not  think  it  can  be  alleged  that  such  exists, 
and  the  constant  increase  in  the  number  of  bank  offices 
throughout  the  United  Kingdom  shows  that  with  the  growth  of 
amalgamations  greater  facilities  have  been  placed  at  the  dis- 
posal of  the  public.  According  to  the  "  Banking  Almanac," 
the  number  of  bink  offices  in  the  United  Kingdom  in  1872  was 
2,924,  and  in  1916  it  was  9,367,  and  the  gradual  disappear- 
ance of  private  banking  firms,  regrettable  as  it  is  in  some 
respects,  cannot  be  said  to  have  in  any  way  affected  adversely 
the  legitimate  facilities  offered  to  the  community.  I  think 
nothing  IS  more  unjustified  than  the  outcrv  one  hears  in  some 
quarters  that  the  joint-stock  banks  cannot  do  and  are  not 
willing  to  do  what  the  private  banks  have  hitherto  done.  Of 
course,  it  is  a  question  of  management,  and  there  may  be 
.some  cases  where  red  tape  has  interfered  with  promptitude  of 
decision,  but  such  cases  can  be  very  few.  Speaking  for  our 
|)art,  I  can  say  from  experience  that  we  have  no  instance  what- 
soever where  private  banks  have  been  absorbed  in  ours  of 
liberal  and  le!,-itimate  accommodation  being  less  readily 
granted  to  the  old  customers  than  was  formerly  the  case,  and 
this  applies  not  only  to  the  large  ones,  but  also  to  the  smaller 
ones,  whose  interest  we  wish  .specially  to  safeguard.  On  the 
contrary,  we  have  had  numerous  instances  where  it  has  been 
admitted  that  we  have  done  more  for  customers  than  the  old 
private  bank  was  in  a  position  to  do.  But  we  have  striven  to 
maintain   the  old   local   interest  and  connection  of  the  private 


partner  in  each  district.  His  personal  influence  and  inter- 
course with  the  customers  have  been  maintained,  and  that 
policy  will  be  continued.  The  cry  against  amalgamations  is 
not  a  new  one,  and  the  process  of  amalgamations  has  been 
going  on,  even  between  private  firms,  for  a  considerable  time. 
1  need  only  mention  the  cases  of  the  firms  of  Glyns  and 
Curries,  Prescotts  and  Dimsdales,  Lubbocks  and  Roharts',  and 
in  Scotland,  where  banking  is  of  much  older  date  than  in  Eng- 
tand,  the  formation  of  joint-stock  banks  in  the  early  part  of 
the  19th  century  led  to  the  rapid  absorption  of  private  banks. 
In  1819  there  were  36  banks  in  Scotland;  in  1844,  24;  in 
1S73,  II  ;  in  i8go,  10.  Vet  it  cannot  be  said  that  Scottish 
banking   shows  any   sign   of  monopoly   or   lack  or   enterprise. 

We  must  not  think  of  these  matters  only  from  our  own  point 
of  view,  but  especially  in  these  times  from  the  point  of  view 
of  how  the  trade  and  commerce  of  the  country  can  be.st  be 
assisted,  and  for  that  purpose  a  strong  institution  with  large 
command  of  capital,  closely  in  touch  with  the  industries  of 
the  country,  must  be  of  the  greatest  service.  It  has  been  said 
that  two  separate  banks  can  do  as  much  as  if  they  were  amal- 
gamated into  one,  but  that  is  not  the  case  where  large  amounts 
are  involved,  and  rapidity  of  decision  is  essential.  (Hear, 
hear.)  One  hank  represented  in  different  parts  of  the  country 
is  in  the  best  position  to  transfer  funds  from  localities  where 
they  are  abundant  to  others  where  they  are  needed,  and  that 
is  the  foundation  of  sound  banking,  and  must  be  conducive  to 
the  most  economical  conduct  of  the  business  life  of  the  country. 

A  Personal  Note. 

On  an  occasion  like  this  a  personal  note  is  perhaps  permis- 
sible. This  is  the  49th  con.secutive  meeting  of  the  shareholders 
of  this  bank  at  which  I  have  had  the  honour  to  preside.  (Hear, 
hear.)  If  you,  as  I  have  no  doubt  you  will,  approve  of  our 
recommendations,  the  confirmatory  meeting  a  fortnight  hence 
with  be  my  50th — (cheers) — a.  fitting  conclusion,  it  may  be, 
to  my  term  of  office  as  governor.  The  National  Provincial,  as 
Mr.  Coward  has  told  you,  have  no  permanent  chairman. 
When  I  first  addressed  you  over  22  years  ago,  I  gave  you  one 
promise — that  the  directors  would  endeavour  to  avail  them- 
selves of  every  opportunity  to  increase  your  business  when  it 
could  be  done  with  safety,  but  that  our  chief  aim  would  be  to 
uphold  the  high  character  and  the  position  of  the  bank.  This 
pledge  I  think  we  may  claim  to  have  carried  out  to  the  best  of 
our  power.  (Cheers.)  In  1850  my  grandfather's  brother,  the 
first  chairman  of  the  London,  Brighton,  and  South  Coast  Rail- 
way, was  elected  a  director  of  this  bank.  It  was  he,  I  may 
mention,  who  brought  about  the  purchase  of  Messrs.  Dixon's 
bank  in  1859,  and  thus  laid  the  foundation  for  one  of  our 
most  prosperous  branches,  the  Chancery  Lane  branch.  Dur- 
ing these  68  years  a  member  of  my  firm  has,  with  but  one  very 
.short  break,  been  a  member  of  our  board.  Thirty  years  ago 
part  of  the  business  of  that  firm  was  taken  over  by  the  bank, 
and  I  became  a  director.  My  only  son,  now  at  the  front  in 
Italy — (hear, hear) — is  a  local  director,  and  but  for  the  war 
would,  by  this  time,  I  should  have  hoped,  have  been  a  director. 
It  is  not  an  ordinary  tie,  therefore,  which  connects  me  with 
this  institution,  to  which  the  best  years  of  my  life  have  been 
devoted,  and  it  is,  I  can  assure  you,  not  with  a  light  heart 
that  I  relinquish  the  position  which  I  owe  to  the  unvarying 
confidence  and  trust  with  which  you,  the  shareholders,  and  my 
colleagues  have  so  continuously  honoured  me.  (Cheers.)  1 
wish  on  this  occasion  to  express  to  you  and  to  my  colleagues 
my  sincere  gratitude  for  this  confidence  and  for  their  loyal  co- 
operation. 

I  am  surrounded  by  some  members  of  the  oldest  banking 
families  in  the  country  and  by  many  directors  who  have  been 
as.sociated  with  this  bank  for  a  great  number  of  years.  It 
would  be  invidious  to  mention  names  amongst  the  older  mem- 
bers of  the  board  of  the  Union  Bank,  but  I  cannot  refrain 
from  mentioning  that  of  Mr.  WoUaston,  who  served  the  bank 
for  40  years — 20  years  as  secretary  and  20  years  as  a  director — 
and  who  rendered  daily  devoted  and  loyal  and  most  efficient 
service  to  the  bank  and  to  the  board  generally.  There  are 
before  my  mind  very  clearly  also  the  names  of  some  of  our 
colleagues  who  are  no  longer  with  us.  I  would  specially  refer 
to  Mr  Trotter,  deputy-governor  until  we  lest  him  five  years 
ago.  His  services  were  really  of  the  most  valuable  kind,  and 
him  we  have  missed  greatly,  and  almost,  I  might  say,  every 
day  during  these  last  hard  and  trying  years,  in  which  he 
would  ha\e  been  a  tower  of  strength..  Amongst  the  country 
directors,  I  would  also  refer  to  the  late  Mr.  Frank  Smith,  of 
Nottingham,  the  very  best  example  of  what  an  active  private 
partner  in  a  bank  can  do  under  new  conditions,  when  he  gave 
himself  heart  and  soul  to  the  Union  of  London  and  Smiths 
Bank,  as  he  had  done  to  the  Nottingham  firm  to  which  he  had 
belonged  before  the  amalgamation. 

The   B0.4ED  and   the    Staff. 

We  have  been,  and  we  are.  a  united  board.  Where  differ- 
ences of  opinion  have  existed,  as  there  must  be  where  a  num- 
ber of  men  are  assembled  together,  they  have  always  been 
adjusted  amongst  ourselves  amicably  and  from  one  point  of 
view  only — the  best  interests  of  the  bank.  During  my  tenure 
of  office  there  has  never  been  a  division  on  the  board.  I  have 
been  equally  fortunate  in  the  co-operation  of  the  most  efficient 
and  loyal  managers  and  stafi,  and  to  them  also  I  would  like 
to  express  and  acknowledge  my  gratitude.  If  there  is  one 
thing  I  look  back  to  with  greater  satisfaction  than  another, 
it  is  the  mutual  confidence  and  friendship  which  have 
existed  between  the  board  and  the  staff  of  the  bank.  We  have 
endeavoured   to  safeguard  their   interests  in  every   way  under 


286 


Zhc  5nveetot8'  IRevtew. 


March  i6,  1918. 


the  new  arrangement.  I  may  say  thai  it  has  been  a  source 
of  great  satisfaction  to  me  that,  when  the  amalgamation  was 
announced  to  the  staff,  there  was  a  general  feeling  of  gratifica- 
tion and  approbation  that  it  should  be  with  the  National  Fro. 
vincial,  for  the  staffs  of  both  banks  whenever  they  have  come 
in  touch  have  alway.s  worked  well  together.  They  are  men  of 
equal  stamp,  and  thus  there  is  every  prospect  of  cordial  co- 
operation between  those  to  wliom  the  carrying  out  of  the  a"t'<=s 
of  management  and  the  work  of  the  bank  must  be  entrusted.  1 
will  not  look  upon  this  occasion  as  one  of  farewell.  If  to  a 
certain  degree  we  lose  our  complete  identity,  yet  we  shall 
become  an  important  integral  part  of  a  greater  institution 
carried  on  on  the  same  principles  as  our  own  and  with  a  wider 
scope.  We  shall  have  as  colleagues  men  of  high  standing  and 
great  experience,  whom  we  know  and  in  whom  we  have  the 
utmost  confidence. 

The  Govkbnment  and  the  A.\iai.<-.amateu  Bank. 
As  Mr.  Coward  has  toW  you,  it  is  my  intention,  if  my 
health  and  strength  permit,  to  give  my  services  to  the  bank, 
as  I  have  done  heretofore,  for  some  years  at  all  events,  and 
especially  to  that  part  of  the  business  of  the  bank  with  which 
I  have  hitherto  been  associated.  My  old  colleagues  and  I  will 
continue  to  serve  on  the  board  as  ordinary  or  extraordinary 
directors,  and  carry  out  our  duties  in  the  same  way  as  we 
have  done  before.  There  will  be  no  change  in  management. 
Thus  I  am  confident  that  the  business  will  go  on  quite  undis- 
turbed, and  that  the  relations  between  the  customers  and  the 
b.^nk  will  be  as  cordial  as  they  have  hitherto  been,  while  we 
feel  that  we  shall  be  able  to  serve  them  better  than  heretofore. 
If,  as  I  have  said,  your  directors  cannot  contemplate  the 
change  without  a  certain  feeling  of  regret— and  had  we  con- 
sulted our  own  inclinations  and  comfort  alone  we  should  have 
preferred  to  remain  as  we  were,  and  we  felt  quite  competent 
to  hold  our  own— if,  then,  we  nevertheless  felt  it  our  duty 
to  come  to  you  with  these  proposals,  it  was  with  the  unani- 
mous conviction  that  they  are  in  the  best  interests  of  all  con- 
cerned. It  is  in  that  spirit  that  we  now  lay  them  before  you ; 
it  is  in  that  spirit  that  I  trust  you  will  receive  them  and  give 
them  your  approval  with  a  unanimous  voice.  1  now  beg  to 
move  the  resolutions  which  have  been  read  out  to  you. 

The  Deputy  Governor  (Mr.  ■  Lindsay  Eric  Smith),  who 
seconded  the  motion,  said  he  did  so  with  a  complete  belief 
that  the  junction  of  their  resources  with  those  of  the  National 
Provincial  Bank  would  be  for  the  advantage  of  both  institu- 
tions, lie  thoroughly  identified  himself  with  all  that  the 
(lovernor  had  said,  and,  although  he  was  extremely  sorry  that 
the  name  of  Smiths  should  go  out  of  the  banking  world,  in 
which  it  had  held  a  position — he  hoped  not  without  honour — 
for  such  a  long  time,  its  inclusion  in  the  title  of  the  new  bank 
was  an  impossibility.  He  desired  to  make  grateful  reference  to 
the  services  of  the  Governor  in  bringing  about  the  amalgama- 
tion, and  the  constant  devotion  of  his  abilities  and  industry  to 
forwarding  the  interests  of  the  bank. 

Shareholders'  Comments. 
.\Ir.    Deputy    Millar    Wilkinson    expressed    his    satisfaction 
with  the  proposal  submitted,  which,    he   said,   promised  them 
a  better   market  for  their  shares,  an    increased  dividend,   and 
improved  prospects. 

Mr.  Alfred  Collier  said  he  regarded  the  bargain  as  an 
unfortunate  one  for  the  shareholders  of  the  bank,  inasmuch  as 
the  paid-up  capital  represented  by  every  lo  shares,  pf  155,  would 
be  written  down  to  ;f  108,  and  a  dividend  of  15  per  cent,  would 
be  required  in  order  to  maintain  their  position. 

Mr.  H.  G.  Drury  asked  whether  the  appointment  of  a  com- 
mittee to  consider  on  behalf  of  the  Government  the  question 
of  bank  amalgamations  was  likely  to  impede  or  prevent  the 
amalgamation  now  under  consideration. 

The  Governor,  in  reply,  said  that  the  sanction  of  the  Trea- 
sury had  been  obtained  before  the  committee  referred  to  was 
appointed,  and,  as  far  as  was  necessary,  the  sanction  of  the 
Government  had  also  been  given  to  the  proposed  change  of 
name.  With  regard  to  the  point  raised  by  Mr.  Collier,  the 
amount  by  which  their  capital  was  to  be  written  down,  nomi- 
nally, was  preserved  to  them  in  the  reserve  fund.  The  writing 
down  of  capital  was  really  a  nominal  matter,  but  the  strength 
of  the  bank  was  enhanced  if  the  reserve  fund  was  verj'  large 
as  compared  with  the  capital.  As  to  the  dividend,  he  had 
.^hown  them  that  it  would  be  16  per  cent.,  so  that  their  stand- 
ing would  be  improved  so  long  as  the  amalgamated  bank 
could  keep  up  the  dividend  at  16  per  cent.  He  had  told  them 
also  that  the  directors  had  gone  very  carefully  into  the  ques- 
tion of  earning  power,  and  that  there  was  very  ample  margin 
above  the  16  per  cent.  The  prospect  of  a  rise  in  their  income 
was  much  better  under  the  new  arrangement  than  it  would  be 
if  the  Union  of  London  and  Smiths  Bank  remained  as  it  was. 
The  resolutions  were  then  put  to  the  meeting  and  unani- 
mously adopted. 

Mr.  Millar  Wilkinson  moved  a  resolution  according  the  best 
thanks  of  the  meeting  to  the  Governor,  Deputy  Governor,  and 
Court  of  Directors  for  having  carried  the  negotiations  to  a 
successful  conclusion,  and  expressing  its  conviction  that  the 
amalRamation  would  result  in  increased  benefit  to  all  parties 
concerned. 

Mr.  Ward  seconded  the  motion. 

Mr.  J.  A.  ClutlonRrock  (a  director)  said  that  the  great 
burden  or  responsibility  had  rested  upon  the  shoulders  of  the 
Crtjyernor,  with  whose  references  to  the  amalgamation  he 
entirely  agreed,  for  it  was  a  t>artnership  conferring  great 
advantages  on  both  sides.  Sir  Felix  Schuster  had  conducted 
the  negotiations,  and  on  behalf  of  the  board  he  (the  speaker) 


bore  witness  to  the  unflagging  energy  exhibited  by  the  Gover- 
nor in  the  discharge  of  his  duties. 

Mr.  H.  H.  Hart  (one  of  the  general  managers)  associated 
himself  with  Mr.  Clutton-Brock's  expression  of  views,  and 
spoke  of  the  strong  personal  interest  which  the  Governor  had 
always  taken  in  all  that  affected  the  staff. 

The  resolution  was  unanimously  adopted,  and  the  Governor 
returned  thanks. 

A  vote  of  thanks  to  Sir  Felix  Schuster  for  presiding  con- 
cluded the  proceedings. 

SCOTTISH    WIDOWS'    FUND    AND    LIFE 
ASSURANCE    SOCIETY. 

The  104th  general  court  of  the  Scottish  Widows'  I'und  and 
Life  Assurance  Society  was  held  at  Edinburgh  on  Tuesday, 
E.  A.  Davidson,  Esq.,  the  chairman  of  the  ordinary  court  of 
directors,  presiding. 

After  referring  to  the  unavoidable  absence  of  the  Earl  of 
Rosebery,    the  president   of   the   society. 

The  Chairman  said  :  The  work  of  the  past  year  was  carried 
on  under  conditions  in  many  respects  even  more  difficult  than 
those  of  the  previous  year.  Most  of  our  inspectors  are  away 
on  war  service,  and  a  large  number  of  the  agents  are  them- 
selves away,  and  also  the  bulk  of  the  young  and  healthy  lives 
from  whom  we  should  normally  derive  a  large  proportion  of  our 
business.  In  these  circumstances,  we  think  the  members  will 
feel,  as  we  do,  that  the  new  business  of  the  year  is  satisfactory. 
We  actually  received  more  proposals  and  issued  more  new  policies 
than  in  r9i6,  but  on  the  average  they  were  for  smaller  sums, 
and  consequently  the  total  amount  of  new  busine.ss  was  reduced 
The  figures  are  as  follows  : — 

New  policies  issued       2,3f>' 

Total  suras  assured         ;^i  ,422,389 

.\mount  reassured  with  other  offices          ...  67,500 
Nett   new  sums   assured  after  deducting  re- 
assurances            1,354,889 

bringing  in  single  premiums  of  ;f  10,967  and  new  annual  pre- 
miums of  ;if6o,828.  I  am  glad  to  say  that  last  year  the  total 
amount  of  death  claims  was  considerably  lower  than  in  any  of 
the  previous  war  years,  and  in  fact  not  greatly  above  our 
normal  average.  •  The  total  amount,  including  bonus,  was 
;^i,i8o,736,  as  compared  with  ^^1,350,454  in  the  previous  year 
and  ^1,325,576  in  1915.  These  figures  include  war  claims 
amounting  in  1917  to  about  ;^i76,5oo.  The  total  war  claims 
up  to  the  end  of  1917  amount  to  about  ;^539,ooo,  representing 
a  nett  loss  to  the  society  of  about  ^^400,000,  after  deducting, 
from  the  gross  amount  paid,  the  amounts  which  were  held  in 
reserve  against  the  policies  and  the  extra  premiums  where 
payable  in  respect  of  war  risks.  The  total  death  claims  for  the 
year  are  once  more  well  within  the  amount  normally  provided 
"for  in  the  society's  valuation,  being  in  fact  about  83  per  cent, 
of  that  amount.  Our  claims  by  survivance,  which  represent  no 
loss  to  the  society,  were  down  by  about  ^^60,000,  so  that  the 
total  claims  are  less  than  in  1916  by  over  ;f229,ooo.  Turning 
again  to  the  accounts,  you  will  observe  that  the  premium  in- 
come is  slightly  higher,  and  the  purchase  money  received  for 
annuities  considerably  higher,  than  in  1916.  On  the  other  hand, 
the  commission  and  expenses  of  management  were  appreciably 
down,  partly  owing  to  the  smaller  new  business — the  ratio  of 
the  expenses,  including  commission,  to  the  premium  income 
being  the  very  satisfactory  one  of  only  9.62  per  cent.  The 
gross  interest  income  shows  a  further  satisfactory  increase,  and 
the  gross  rate  of  interest  earned  on  the  entire  funds  is  in- 
creased from  £^  I2S.  id.  per  cent,  in  1916  to  £4  i6s.  6d.  per 
cent,  in  igi",  an  increase  of  over  4s.  per  cent.  The  nett  rate 
of  interest  sjiows  little  change,  but  we  are  now,  of  course, 
feeling  the  full  severity  of  the  5s.  income-tax,  which  presses 
very  heavily,  and  indeed  unfairly,  on  a  life  office  whose  mem- 
bers  as  a  whole  are  subject  to  a  much  lower  rate  of  tax.  Wc 
cannot  but  hope  that  in  course  of  time  the  fosition  will  be  re- 
medied. The  total  income  of  the  year  was  ;f2. 359,077,  and  the 
total  outgoings  ;fi,93o,877,  showing  an  excess  of  income  over 
expenditure  to  the  amount  of  ^428. 200.  In  the  ordinary  course 
this  would  have  been  added  to  the  funds,  but  in  preparation 
for  the  quinquennial  investigation  at  the  end  of  this  year  when 
the  values  of  our  securities  will  have  to  be  revised,  the  directors 
have  thought  it  desirable  to  carry  to  an  investment  reserve 
fund  a  round  sum  of  half  a  million.  After  providing  for  this 
amount  the  funds  at  the  end  of  the  year  amounted  to  just  under 
22^  millions. 

The  principal  financial  event  of  the  year  was,  of 
course,  the  very  successful  result  of  the  great  5  per  cent.  War 
Loan.  The  chairman  at  last  year's  meeting  reported  that  our 
total  holding  of  the  New  War  Loan  was  over  5i  millions,  in 
addition  to  other  war  securities,  bringing  up  the  total  to  over 
7  millions  sterling.  Since  then  we  have  had  the  issue  of 
National  War  Bonds  on  a  basis  very  favourable  to  the  investor, 
and  the  favourable  results  of  the  year  have  enab'ed  us  also  to 
find  the  necessary  funds  for  taking  our  share  in  the  very  grati- 
fying success  of  the  new  National  War  Bonds.  Of  these  wc 
have  taken  a  total  of  about  three-quarters  of  a  million,  and 
our  aggregate  holding  of  British  Government  war  securities 
now  exceeds  7J  millions,  representing  an  investment  of  one- 
third  of  our  funds,  or  an  average  investment  of  over  / 100  for 
every  policy  on  our  books.  I  think  these  figures  must  certainly 
be  gratifying  to  the  members  and  to  all  connected  with  the 
society. 

This  is  the  last  year  oi  our  quinquennial  period,  and  at  the 
end  of  the  year  the  usual  detailed  investigation  and  actuarial 


March  i6,  1918. 


^be  Jnvestove'  IRevtew. 


287 


valuation  will  be  made.  Whether  we  shall  then  be  still  at  war 
or  whether  happily  peace  may  by  that  time  have  been  reached, 
it  is  clear  that  the  valuation  will  be  made  under  very  ab- 
normal conditions.  Vou  will  not  therefore  e.xpect  me  to  be 
able  to-day  to  anticipate  the  results  of  that  investigation,  but  I 
can  confidently  say  that  our  financial  position  is  such  that  we 
can  look  to  the  future  with  every  degree  of  assurance  in  the  un- 
sliakable  stability  of  the  society.  The  last  year  of  an  investi- 
gation period  is  one  in  which  we  always  expect  to  do  a  larger 
business  than  usual,  and  I  would  remind  the  members  of  this 
great  mutual  society  that  it  is  their  privilege  and  duty  to  assist 
in  extending  the  connections  of  the  society  for  the  common 
good.  Personal  recommendation  on  the  part  of  those  who  have 
them.selves  experienced  the  benefits  offered  by  the  society  is 
very  effective  because  disinterested,  and  most  of  the  members 
must  have  friends  and  acquaintances  who  have  not  yet  made 
full  and  sufficient  provision  for  their  families  and  for  their  own 
old  age  by  means  of  life  assurance,  the  value  and  importance  of 
which  were  jjerhaps  never  greater  than  at  the  present  time. 

I  have  now  formally  to  move  the  adoption  of  the  report  and 
accounts. 

The  resolution  was  unanimously  carried  ;  and  on  the  motion 
of  Provost  Lindsay,  Leith,  seconded  by  J.  Hope  Campbell, 
Esq.,  W.S.,  the  vacancies  on  the  board  were  supplied  by  the 
election  or  re-election  of  the  gentlemen  recommended  by  the 
extraordinary  court ;  after  which  a  resolution  moved  by  Sir  R. 
R.  Simpson,  W.S.,  and  seconded  by  T.  D.  Hunter,  Esq.,  was 
passed,  thanking  the  directors  and  office-bearers  for  their  ser- 
vice during  the  past  year,  to  which  the  Chairman  replied. 

On  the  motion  of  the  Chairman  it  was  resolved  that  the  next 
general  meeting  be  held  on  such  day  as  the  directors  may  fix. 

A  vote  of  thanks  was  accorded  to  the  chairman  on  the  motion 
of  Sir  George  Anderson,  and  the  proceedings  terminated. 


Owing  to  the  national  need  tor  economy  of  paper,  the  society's 
full  report  will  not  this  year  be  circulated  as  usual  among  the 
members,  but  any  member  desiring  a  copy  may  obtain  one  on 
application  to  any  of  the  society's  offices,  and  an  abstract  of  the 
report  is   appended. 

ABSTRACT  OF  THE    SOCIETY'S   REPORT   AND  ACCOUNTS 
For  the   Year   ended    December)   igi7. 

New  Business. 

Proposals  received,  2,734  for       

New  business  actually  completed,  2,302  policies  for... 

Re-assured  with  other  offices       

Nett  new  sums  assured      

Nett  single  premiums  received 

Nett  new   premium   income  (per  annum)         

Accounts. 

Premium   income      

Interest   income,    gross       

Interest  income,   less  tax 

Total  income  of  the  year 

Excess   of   income  over  outgoings 

Average  gross  rate  of  interest  realised  (subject  to 
deduction    of    income-tax) 

Death  claims   for  the  ^ear,  including  war  claims... 

Claims   by  maturity 

Expenses  and  commission,  representing  9.62  per  cent, 
of  the  premium  income,  or  5.83  per  cent,  of  the 
total    revenue      

Amount  carried  to  investment   reserve  fund  ... 

Assurance  and  annuity  funds  at  the  end  of  the  year.. 


1,422.389 
67,500 

1,354.889 
10,967 
60,828 


1. 429. 1 93 

1,061,507 

836,164 

2,359.077 
428,200 

^4/16/6 

1,180,736 

338,680 


137,523 

500,000 

22,383,714 


UNDERGROUND    ELECTRIC    RAILWAYS 
COMPANY    OF    LONDON. 

The  yearly  meeting  of  the  Underground  Electric  Railways 
Company  of  London,  Ltd..  was  held  on  Friday,  March  8,  at 
Caxton  Hall,  Westminster,  the  Right  Hon.  liord  George 
Hamilton,  G.C.S.L  (the  chairman),  presiding. 

The  Secretary  (Mr.  W.  E.  Mandelick)  read  the  notice  con- 
vening the  meeting. 

The  Chairman,  in  the  course  of  his  remarks,  said  : — The 
last  year  has  been  remarkable  for  the  growth  of  total  business 
done,  but  that  growth  has  unfortunately  been  accompanied 
by  an  abnost  equivalent  increase  of  expenditure.  The  total 
gross  receipts  of  the  five  operating  companies  parties  to  the 
Common  Fund  Agreement  during  the  year  1917  amounted  to 
/6,66i,863 — an  increase  of  .,^623,334  over  the  previous  year 
— and  the  revenue  liabilities  of  the  companies,  which  term  in- 
cludes working  expenses,  debenture  interest,  and  preference 
dividends,  as  well  as  provijBion  for  depreciation  and  re- 
serves, increased  by  ^609,964.  Nearly  half  the  increase  in 
expenses  was  due  to  increased  war  bonuses  to  the  staff,  both 
on  the  railways  and  on  the  omnibuses.  We  can  hardly  antici- 
pate any  decrease  in  the  rate  of  growth  of  the  working  ex- 
penses. All  materials  required  for  the  maintenance  of  the 
properties  increased  in  price,  and  the  difficulty  of  obtaining 
many  of  the  materials  and  sufficiently  skilled  labour  was  such 
that  the  maintenance  has  not  been  up  to  the  high  standard  of 
the  past.  This  fact  has  forced  the  railway  companies  to  in- 
crease further  the  appropriation  to  reserves,  so  that  they  may 
be  able  to  cover  the  cost  of  the  extraordinary  repairs  and  re- 
newals that  will  be  nece.ssary  at  the  clo.se  of  the  war.  As  re. 
gards  fares,  they  have  been  raised  during  1917;  these  rises, 
coming  gradually  into  operation  during  last  year,  account 
for  a  certain  proportion  of  the  increased  receipts.  This  year 
will,  we  hope,  benefit  to  the  full  extent  by  the    estimated  in- 


creases. The  Underground  occupies  a  unique  position,  as  it 
is  now  an  enterprise  which  has  so  grown  and  extended  itself 
thai  it  controls  a  large  proportion  of  the  transportation  of 
passenger  service  in  London.  It  carries  approximately 
900,000,000  passengers  a  year,  and  the  majority  of  the  fares 
of  these  passengers  is  twopence  or  under.  The  increase  iu 
fares  was  not  made  by  arbitrarily  fixing  a  uniform  flat  ratft 
of  25  to  50  per  cent,  increase  on  all  fares,  but  in  a  readjust- 
ment and  rearrangement  of  fares,  so  that  each  part  of  the 
system  and  each  distinctive  route  of  traffic  between  the  fixed 
points  should  fairly  contribute  its  quota  towards  the  increased 
cost.  The  various  companies  will  continue  assiduously  and 
vigilantly  to  prq^cute  this  work  of  adjustment,  framing  the 
fares  so  as  to  take  with  them  as  far  as  is  possible  the  good 
will  of  those  they  carry.  But  this  readjustment  of  fares  in 
the  case  of  season-ticket  rates  cannot  be  made  without  the  con- 
sent of  the  Board  of  Trade,  as  they  control  the  District  Rail- 
way. So  far  they  have  refused  to  allow  an  increase  on  seasori 
tickets  on  that  line,  and  this  refusal  not  only  prevents  an 
increase  on  season  tickets  on  other  lines,  but  makes  .t  rise  in 
other  directions  more  difficult.  The  Chairman  then  dealt  with 
the  position  of  the  undertakings  in  which  this  company's  in- 
vestments are  mainly  placed,  and  stated  that  their  income  from 
the  investments  amounted  to  ^^606,730  against  ;^653,36i  in  the 
previous  year.  This  income,  he  proceeded  to  say,  fevers  the 
payment  of  all  fixed  and  cumulative  charges  and  4  per  cent., 
free  of  tax,  for  the  year  on  the  6  per  cent,  income  bonds  of 
the  company.  The  balance  carried  forward  shows  a  small 
increase.  It  may  be  a  disappointment  to  the  income  bond- 
holders that  there  has  been  a  reduction  of  i  per  cent,  upon  thfi 
dividend  payable  to  them  as  compared  with  that  of  last  year, 
and  I  understand  and  participate  in  their  disappointment. 
But  the  directors  of  the  operating  companies  were,  in  out 
judgment,  absolutely  right  in  the  course  they  took  of  pro- 
viding the  means  by  which  upon  the  termination  of  war  the 
ITnderground  will  be  able  to  respond  to  the  increased  traffic 
demands  which  are  certain  to  be  made.  If  the  deferred  main- 
tenance of  the  properties  in  which  we  are  interested  cannot 
rapidly  be  made  good  after  the  war,  we  invite,  if  we  do  not 
necessitate,  competition.  By  want  of  foresight  and  precau- 
tion we  ourselves  invalidate  our  otherwise  secure  position.  The 
loss  on  foreign  exchange  to  which  I  referred  fully  in  speak- 
ing to  you  last  year  has  been  somewhat  reduced  in  the  current 
year.  Fewer  of  our  coupons  were  cashed  abroad,  and  the  ex- 
changes were  more  favourable.  A  review  of  the  past  inspires 
me  with  confidence  as  regards  our  future.  We  have  successfully 
weathered  three  years  of  exceptional  stress  and  privation,  and 
if  only  we  resolutely  follow  a  policy  by  which  we  internally 
strengthen  ourselves  for  the  future  developments  and  inter- 
communications which  must  occur  after  the  war,  and  at  the  same 
time  retain  the  good  will  of  the  public  we  carry,  our  future 
should  be  assured.  In  conclusion,  the  chairman  moved  the  adop- 
tion of  the  report  and  accounts. 

The  Right   Hon.    Sir  Algernon   West,    G.C.B.,   seconded   the 
motion,  which  was  carried. 


Ansv«^eps  to  Coppespondents. 

♦,•  A  Koy  to  these  Answers  will  be  posted  early 
each  week  tor  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  for  six  months,  or 
6s.  9d,  for  three  months. 
Deposits  against  future  tfuerles  may  be  lodQed 
with  the  Publisher, 

S.  R.— (i)  There  is,  perhaps,  no  hurry  to  average;  at  the 
same  time,  do  not  miss  your  chances.  (2)  There  may  be  no 
dividend  here  for  many  years.  Not  worth  buying,  not  even 
as  a  mere  speculation. 

West  Away. — Yes,  very  fair  indeed. 

Dinnie.— Not  unless  held  on  borrowed  money.  ^  They  may 
go  down  in  the  meMe,  but  are  good  to  come  up  again. 

L.  G.  R. — (i)  These  have  had  a  sharp  rise,  and  are  high 
enough  at  present.  If  fall  back  to  about  27s.  6d.,  might  be 
worth  picking  up.  (2)  If  you  are  prepared  to  hold,  yes;  but 
we  do  not  anticipate  any  great  change.  (3)  Should  not  touch 
these  just  now.  ...       1. 

Wykamist.— (i)  We  fear  there  can  be  no  appreciation  in  the 
near  future,  but  the  income  is  safe,  and  unless  you  can  sell 
and  reinvest  in  stocks  giving  you  a  better  income,  it  would 
be  a  pity  to  sell  now.  (2)  All  should  be  held,  we  think,  (a) 
The  chaos  existing  cannot  cont.nue.  (b)  There  is  a  slight  im- 
provement here,  and  the  stock  should  be  worth  holding, 
(c)  There  is  good  security  for  this,  and  it  should  be  held. 

J.  G.   D.— Why  not  take  your  profit? 

Mercer. — The  company  has  a  wonderful  business,  but  it 
would  be  prudent  to  sell  half,  as  you  would  have  more  than 
vour  original  cost  back. 

L.  F. — The  company  is  doiuT  wonderfully  well,  and  you 
might  buy  a  few  more. 


Cotton  Growing  in  South  Africa. — The  South  African  In- 
dustries Advisory  Board  is  inquiring  into  the  possibilities  of 
encouraging  cotton  cultivation  in  the  Union  of  South  Africa. 
The  area  expected  to  be  placed  under  cotton  during  the  ensuing 
•season  is  estimated  at  from  7,000  to  10,000  acres.  Quite  a 
number  of  farmers  are  planting  cotton  in  Zululand.  Upwards 
of  2,000  acres  have  been  planted  in  one  district  there. 


288 


Zhc  Jnvestors'  IRevfew. 


March  i6,  1918. 


INDIAN  RAILWAYS. 


MONTHLY    STATEMENTS. 


Name. 


OROBS  TRArriC  FOR  WSU. 

In.  or  dee. 


AiumBenRAl       .. 

BarsI 

BenKAl&N.'VV.  .. 
Bengal  Nagpur  .. 
Bombay,  Baroda  .. 
Carma  , , 
Delhi  UmbalU  . . 
Eant  Indian.. 
Gt.  Indian  Penln.  .. 
Luoknow-Bareilly. . 
Madras      and       S. 

Mahratta  . . 
Niiam'sGd.  (Broad) 
,,        ,,     (Metre) 
Ronllkund  and 

Kumaon  .. 
South  Indian 


Week 
endiof 

Jan. 


Mar. 
Dec. 
Mar. 


Jan. 


Amoont 


Rs. 

12 

>.45.«57 

— 

■<) 

97  *» 

.— 

■  2 

4,07,870 

— 

>9 

10,13,000 

— 

a 

15,18,000 

— 

I 

4,34.871 

— 

2 

84,100 

+ 

0 

24,18,000 

+ 

a 

24,35,700 

+ 

12 

48,676 

— 

»9 

9,50,005 

_ 

19 

1,40,648 

— 

'9 

i,oo,i;8 

— 

12 

29,478 

— 

19 

5.0<i,i9'' 

— 

on  last 
vear. 

tar 

32,218 

21.300 

8.594 
18,000 
51,000 
36,671 
14,886 
56,000 
+  2,09,100 

a,438 

79.295 
12.421 
10,561 

9,031 

4,038 


OROtS  TRAFriC  TO  DATI. 

iTi  la.  or  dec . 


t  1,59.27,643  +  10,02,877 

t  20,05,604  —          5.002 

J  13,08,102  +           8,671 

1  6,21,474  +         54,435 

1  1.02,91,924  +     6,32,036 


t  April  I,           t  Ootobei 

TRAMWAY  AND  OMNIBUS.- 

1. 

-HOME. 

Doblln  United       .. 
Hastings  and  DIst.. 

Isle  01  Thanet 
Lancishire  United.. 
Provincial    .. 
Yorks.  (Wst.  Rdng.l 

Mar.   1 
,.    11 
Pel).  23 
Mar.  6 
Jan.  25 
Mar.  to 

£ 

7.305 

1.050 

170 

2,522 

2,479 
2,287 

+    1,364 
+       400 
—        52 
+       781 
+       729 
+       549 

1 

t 

* 

61,814 
9.427 
3.587 

23,270 

35.274 
23.407 

+      11  088 
+           895 
—  .     1. 612 
+        7,263 
+        5.569 
+        5.631 

•  From  Oct.  i.  t  From  Jan. 

TRAMWAY  AND  OMNIBUS.— FORbiGN   AND  COLONIAL. 


£ 

£ 

Ms. 

£ 

£ 

Alabama  Power    . . 

Jan.  5 

129,919 

+      19,173 

I 

129,919 

+      19.173 

Annlo-Argentlne    .. 
Auckland  Electric. . 

Mar.  1 1 

57.977 

+       5.382 

* 

538,059 

+      35.156 

Oct,  16 

22,308 

+          880 

a 

02,118 

MS4685000 

+       7.832 

Bratilian  Traction  . 

Dec. 

M7,3i2,ooo 

+  M  757,000 

12 

♦•M7315000 

Brisbane  Eleo.  Inv. 

Oct. 

33.580 

+            820 

10 

328,420 

—           2,C00 

British  Columbia  . . 

Dec.  § 

•  ■67,333 

+     $30,967 

5 

•599.797 

4-     (60,091 

B.A.  Lacroze 

Feb. 

34.397 

—        1,580 

8 

303,775 

-          1,239 

Burmah  Electric  . . 

Jan.     b 

Rs. 25,429 

+   Rs.1,627 



134,537 

+    Rs.    l}4 

Calcutta 

Mar,  9 

Rs. 76,174 

+  Rs.6,697 

* 

Rs6,45,787 

+  Rs.27,985 

Carthagena  and 

Herrerias  . . 

Feb.     i> 

4.031 

+           808 

* 

8,042 

+            837 

Cordoba  Light 

P.&T 

Jan. 

12,845 

+             4'3 

10 

134.966 

641 

Hongkong  .. 

..     7 

12,246 

¥            (58 

* 

•  12,246 

+            (58 

La  Plata 

.,       t 

4,7" 

+             396 

12 

48,962 

—         1,873 

Lima 

,, 

22,519 

+          5.2II 

1 

22,519 

+         5,211 

Madras  Electric    , . 

Feb.  28c 

Rs.  33.553 

+   Rs. 5,042 

* 

Rs.149,194 

+  Rs.  5,257 

Manila  Electric 

Auk.  8 

65.467 

+          4.667 

8 

547,492 

+       70,625 

Mexico 

Nov.   J 

•  215.256 

—  1108,669 

« 

»3,l93,lo6 

—  $197,227 

Rangoon 

Feb.    I 

5.662 

+          1,057 

* 

11,023 

+         1.735 

Singapore  Electric 

Dec.  2g 

»I3,20I 

+       •1,173 

♦ 

|668,8o5 

+     •11,901 

Toronto 

Nov.    i 

»42\556 

-      •8.753 

II 

•  5,032,176 

+   •239,133 

United  of  Monte  V. 

Feb. 

34.573 

+         2,269 

4 

135.674 

+        10,261 

VeraCrur    .. 

Nov.  S 

46,300 

10 

567,000 

— 

Winnipeg    . . 

" 

•  86,888 

-     •14-744 

II 

$748,976 

-  $327,782 

6a8  days.       ♦  From  Jan.  i       i  Nett.       a  From  July  i. 
FOREIGN   RAILWAYS. 


c  Two  weeks, 


Alcoyand  Gandla 

Antotagasta    (Chili) 

Arauoo 

Argentine  N.K. 

Bilbao  R,  and  Canta 

Bolivar         , .         . . 

Braill 

Brazil  Gt.  Southern 

B.  Ayres  &  Pacific 
Do.  Central 
Do.  Gt.  South'n 
Do.       Western 

Central  Argentine.. 

C.Ur'g'ayofMte  V 
Do.  EasfnEx 
Do.North'nEx, 
Do.  West'n  Ex. 

Cordoba  Central  . . 

Costa  Rica   . 

Cuban  Central 

Dorada  Extension.. 

Egyptian  Delta     .. 

Entre  Rios  . . 

French  Sante  F*  . . 

Gt.  South,  of  Spain 

Gt.Wesi.  of  Brazil 

Havana  Central    . 

Inter,  of  C.  Amer.. 

La  Guatra  and  Car. 

Leopoldina.. 

Midland  Uruguay . 

Mogyana 

N.W.  of 

Nitrate 

Paraguay  Central  . . 

Paullsta 

Peruvian  Corpn    , . 

Salvador 

State  of  Bahia  S.W. 

.S.  Paulo  (Brazilian) 

Sorocabaaa.. 

Taltal 

United o(  Havana. 

West'n  of  Havana. . 

Zafia  and  Huelva 


f  Uruguay . 


Mar.    9 
,,     10 
Jan. 
Mar.     9 
Feb. 

* 

Nov.    • 

Mar,    9 
Jan. 
Mar.  10 


Jan. 
Mar. 
Feb. 
Jan.  31 
Mar.  9 
Aug. 
Mar.     2 

Feb.  23 

Jan.    c' 

Feb. 

Mar.     9 

Feb. 

Nov, 

Feb. 


tH^ar. 
Nov. 
Feb. 

Jan. 
Mar. 
Dec. 
Feb. 
Mar. 

Jan. 


Pa. 


£ 

9,00.3 

46,060 

14.000 

8,000 

2.953 

9.500 

M4, 746,000 

Mij.44,050 

12^,000 

29,421 

149,000 

72,000 

159,000 

31,064 

5.789 

3.963 

2,698 

38,700 

3.996 

41.451 

7,400 

11,173 

20,900 

132,000 

34.528 

18,800 

11,079 

23,424 

5.500 

29,842 

10,000 

M2,242,000 

•  23,000 

34,097 

2,440 

M3, 506,000 

6925,410 

»3,1I2 

Ml  14.000 

34,154 

Ma, 107,000 
22,298 
93,236 
13,000 
10,923 


Ps. 


£ 

2,000 

11,390 

2,000 

1,100 

655 

639 

M  664,379 

M850 

44.000 

8,949 

a6,ooo 

28,000 

67,000 

6,554 

52 

1.396 

+         1,116 

+       10,980 

—  2,749 

+     10,780 

—  1,400 
+        3,595 

H  7,400 
+  29,099 
-Ps56,l89 
+  6,800 
+        3,208 

—  8.199 

—  3.500 
+    5,429 

—  3,280 
+  M  222,440 

+  $1,202 
+  3,269 
+      260 

+  M  589,750 
■i- ,  580,640 

—  » 1,055 

—  M8,ooo 
+       15,^5 

+  M224,2o6 

+     5,348 

+     31,613 

+         4,495 

+  782 


£ 
Ps.  89,900 

376,535 

i4,oeo 

398,100 
8,062 
89,236 
M  45353000 
M47i,527  ,+ 
2,965,000  ;— 
175,607  1  + 
3.837,705  |— 
1,687,000  — 
3,563,200  j— 
646,096  ;  4- 

175,772  !+ 
112,726  1+ 

76,355  ,+ 
1,037,980 

81,054 
631,878 

15,700 
240,609 
522,600 
900,336 
Ps.273,261 
188,900 
280,549 

23,424 

13.750 
325,751 
104,920 

.M  21669,000 

•212,065 

107,793 

103.230 

M  30654,000 

58,203.030 

$57,556 

Mii4,ooo 

359.160 

M  16,988 

ao4,a86 

1. 845.071 

294.463 

0.923 


£ 

-Ps.16,170 

+         5.305 

+        2,000 

+       59.998 

-  433 

+        19.230 

+  M5238971 

Ms  1.057 

167,000 

4,155 

239.549 

152,000 

291.200 

■79,541 

8,680 

29,605 

10,839 

14,490 

66,253 

129,868 

a,300 

57,320 

101,500 

173.429 


Ps.606361 

49.950 

5'.497 

8,199 

4,250 

88,352 

4,110 

+  M247,7ia 

+     $19,748 

+  8,713 

+        13.530 

+  M1436138 

+   S917.638 

—  $6,350 

—  MS.ooo 
+  133.769 
+  M 1735205 
+  56,904 
+  447.489 
+  79,121 
+  782 


*  Montba.  t  From  Jan.  I     I  From  July  i.    c  Nett.    6  13  days,    a  10  days. 
COLONIAL  RAILWAYS. 


Iteir* 

Nov.  »c 

•  56.69S 

l4S« 

I 

£ 
124,329 

+         8,374 

Canadian  Northern 

Mar.  7 

$666,400 

— 

$2,700 

$27,929,500 

+  $437,700 

Canadian  Paoitio   . . 

1.     7 

$2,617,000 

+  (175,000 

$22,726,000 

+  $1041,000 

Gr.Trk.  Mam  Line 

..     7 

■85.596 

+ 

11,660 

1,420,679 

—     154,863 

Gc.  Trk.  Western.. 

..     7 

32,343 

— 

390 

279.335 

—       14.704 

Detroit  G.H.&M. 

..     7 

«a,729 

+ 

•934 

97.361 

—        4,322 

Gr  Tk  Pac  Prairie  Sc 

„  "    ' 

20,323! 

+ 

1,768 

206,090 

+       59.071 

MashonalanJ 

Nov.  • 

56,698 

— 

1.486 

56.698 

-         1,486 

Mid.of  Westn.  Aus. 

^%.   I 

9.296 

+ 

790 

7 

52.517 

+         4,005 

New  Cape  Central.. 

a,5" 

+ 

67a 

* 

11,286 

+           1,356 

Rhodesia 

Nov.  •£ 

9.498 

4- 

3,364 

I 

9,498 

+           3.364 

*  Month 

•       t 

Inly  I. 

«  Jan. I. 

t  t 

romOct.  t. 

METT  tARHINat  FOR   UOHTR. 

RETT  SARMIMOS  TO  DATC. 

■  AMI 

Month. 

Amount. 

In.  or  Dec. 
on  last  year 

11 

Amount. 

In.  Of  Deo. 
onlastyear 

Atehlaofl  T.  &  S.  Ft 
Atlantic  Coast  Line 
Baltimore  &  Ohio  .. 
Canadian  Northern 
Canadian  Pacific  .. 
Chesapeake  8c  Ohio 
Chicago  &  N.W.  .. 
Chicago  Burl.  &  Q. 
Chicago  G.W. 
Chicago  Mil.  &  S.P. 
Chicago,  Rock  I.&P. 
Colorado  &Southern 

Cuba 

Delaware  &  Hud.  .. 
Denver  it  Rio  Gran. 

Kne 

Gr.Tr.  Main  Line.. 
Grand  Trunk  Westn 
DeiroitG.M.&Mil. 
Gt.  Northern 
Illinois  Central 
Kansas  City  Southn 
Lehigh  Valley 
Louisville  Bt  Nashvl 
Minn.  S.P.  (Soo)l  .. 
Miss.  K.  &  Texas  . 
Missouri  Pacific  . . 
New  York  Cenl.&H 
N.Y.  N.Haven&M 
New  York  Ont.aw 
Norfolk  &  Western 
Northern  Pacific   ., 
Peonsylvdnia     East 

and  West  Lines 
Phil,  and  Reading  . . 

Reading 

St.  Louts  &  San  F. 
Seaboard  Air  Line. 
Southern 

Southern  Pacific   . 
Union  Pacific 
Wabash 


Dec. 


Jan. 
Dec. 

Nov. 
Dec. 


Nov. 
Dec. 


Nov, 

Dec. 
Nov. 
Dec. 
Nov. 

iJec. 

Nov. 

Dec. 


Nov. 


Dec. 


Nov. 
Dec. 


Dole. 

3.543.0C0 

2,036,000 

1,851,000 

65,300 

1,168,000 

1,238,000 

2,711,000 

1,642,000 

388,000 

892,000 

1,362,000 

444,000 

363,000 

4,000 

296,000 

507.000 

f86,200 

l>  £15,650 

1,165,000 

1,466.000 

294,000 

628,000 

1,296000 

357,000 

912,000 

1,690,000 

2,939,000 

1,469.000 

111,000 

1,28  ,000 

1,414,000 

2,010,000 

1, 064,0c  0 

577,033 

l,304.ouO 
673,000 
2,953,000 
4,465,000 
3,247,000 
316.000 


Pols     I 
47.839,000  — 
12,014,000  + 
30,589,000  — 

S.SM.lOO  — 

i,i68,oco  — 
14,099,000  — 
27,015,000  — 
31,281,000  {  — 

3,876,000 
31,967,000  |— 
17,623,000  :— 

3.320.000  [  + 

1,136,000 

5.686.000 

7,416,000 
10,538.000 

C 1,907, 300 
433,200 
£67,700 

33,9^7,000 

17,538,000 
4,495,000 

9,240,000 
16,949,000 
9,331,000 
8,305,000 
9  425,000 

45,049,000 
19,597000 

2,228.000 
19,654,00c 
37,433,000 


13  j  88, 


I 


450,eoo 
14,877,0  o 
9,006  000 
8,569,000 
8.628,000 
I4,753.ouo 
55.577,000 
42,942,000 
12,003,000 


Dole. 

1,248.000 

607,000 

3.425.ooe 

2.961,000 

1,363  000 

i,4<:o.ooe 

3,634.000 

3,956.000 

1,006,000 

9  360,000 

2,953,000 

370,000 

153.000 

2.124,000 

1,963,000 

5,277,000 

^27,900 

£■39050 

£99.900 

6,179,00a 

2,590.  .00 

569.000 

2,410,000 

836,000 

3,648,000 

2  573,000 

1,920,000 

■  3335.000 

1,665,000 

97,too 

3,808,000 

4,110,000 


—  20891,000 

—  6,626,000 
+  212,860 
+  1,093.000 

—  24,oee 
+  2,098,000 
+  7,255,o»» 

—  2,ii5,e«e 

—  844,000 


{  Includes  Wisconsin  Central.    ♦  Gross  earnings,    t  Surplus.    *  Deficit. 


JLetter0  to  the  j£Mtor. 

INXOME-TAX  CLAIMS. 
Sir, — I'ermit  us  ■to  draw  the  attention  of  your  readers  to  the 
law  requiring  claims  to  repayment  for  the  year  ended  April  5, 
1915,  to  be  lodged  with  the  Inland  Revenue  before  April  6,  1918. 
This  applies  to  the  following  claims  : — 

1.  Exemption  where  total  income  for  1914-15  did  not  exceed 
£^60. 

2.  Abatement  where  total  income  does  not  exceed  ;£70o. 

3.  Children's   allowance   where  total   income  for 
not  exceed  .^500. 

4.  Life  insurance  premiums  up  to  one-sixth 
income. 

5.  Interest  on  overdraft  at  bank. 

6.  Maintenance  cf  property  (farms  and  cottages). 

7.  Charities. 

8.  Residents  abroad. 

Claims   in   respect  of   diminution  of   business   profits   during 
the  year  iqiG  and  1917  should  be  preferred  without  delay. 
Yours  respectfully, 

Frv  .\xn  Morrison. 

The  Income  Tax  Reclamation  Association, 
62  and  6.3,  Queen  Street,  E.C., 
March  1;,  1918. 


of 


1914-15   did 
the   assessed 


A  correspondent  writes  to  the  Times  to  say  that  no  parcels 
have  got  through  to  his  son,  who  is  a  prisoner  of  war  at 
Holzminden,-in  Germany,  at  least  since  the  end  of  last  year, 
although  they  have  been  sent  regularly  over  the  whole  in- 
terval. Are  the  Germans  so  hungry  now  that  the  officials  and 
guardians  of  prisoners  of  war  are  stealing  the  food  sent  to 
ke^p  our  men  from  starving?     It  looks  probable. 

Higher  Fares  on  Tramways. — In  connection  with  the  recent 
award  by  the  Committee  on  Production  to  tramway  workers  of 
higher  wages,  a  resolution  has  been  adopted  at  a  preliminary 
conference  of  tramway  employers  and  unions,  asking  Sir 
George  A.skwith  to  obtain  from  the  War  Cabinet  an  under- 
taking that  they  will  take  immediate  steps  to  authorise  the 
increase  of  maximum  fares  by  an  amount  to  be  decided  by 
the  Board  of  Trade.  The  resolution  indicates  that  all  parties 
to  the  arrangement  are  agreed  that  the  advances  in  wages 
necessitate  an  increase  in  fares  on  tramway  systems. 

The  United  States  Senate  has  passed  a  measure  tending  to 
facilitate  the  dispersal  of  German  investments  in  the  United 
States.  The  Alien  Property  Custodian,  Mr.  A.  M.  Palmer, 
the  real  creator  of  the  measure,  has  been  authorised  through 
the  Legislature  to  sell  all  German  property  in  America,  valued 
at  ^^300,000, 000,  including  an  imposing  amount  of  investments 
belonging  to  the  HohenzoUern  himself.  He  seems  to 
have  been  putting  money  out  in  America  as  if  he  felt  it  neces- 
sary to  put  by  a  little  store  to  live  on  when  his  native  country 
has  had  enough  of  him.  Even  that  refuge  seems  likely  to  fail 
him  in  the  end.  But  he  still  has  his  Krupp  .shares— until 
Essen  is  bombed  out  of  existence. 


i 


Pnated  by  the  Si.  Clemikts  Priss,  Ltd.,  Portuga'  Street,  Kingsway,  i.oDaon,  w.t.,  lor  the  Proprietor  of    1  hb 
by  Thi  PlorniBTOR,  Norfolk  House,  Nortolk  Street,  Strand,  W.C.  a,— March  16,  igiS 


London,  W.C,  for  the  Proprietor  of  The  Invesioks'  Rsviiw,  and  Published 

' —  - -       -"-•       -      -  [N  „ie 


TOe 


finveetore'  1Re\>tew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


Vol.XLl.— No.  1,055.] 

NEW  SERIES, 


L     N( 


Registered  as  a1 


ewapaper. 


SATURDAY,  MARCH  23,  1918. 


[Price  6d. 


CONTENTS. 


Passing  Events : — War  Bond  Sales  —  Revenue  —  Shipping 
Losses  —  Marconi  Case  —  British  Insulated  and  Helsby 
Cables  —  British  Aluminium  —  Lever  Bros.  ■ —  Price's 
Patent  Candle  —  Borax  Consolidated  —  Position  of  Low- 
Grade  Mines  (pp.  291-4). 

Leading  Articles: — A  "League  of  Nations"  with  Russia 
Enslaved  —  Grand    Trunk    Railway   and    Increased    Rates 

—  Our  Foreign'  Trade  in  February  —  Italian  Trade  and 
Exchange  —  By-the-Way  War  Notes  —  Shipping  Losses 
and  Output  —  Income-Tax  Guides  and  L-  ssons  (pp.  294-7 
and  307-8). 

Insurance  News  : — Scottish  Amicable  —  National  Mutual  — 
Provident  Mutual  —  Excess  Insurance  Co.  —  Provident 
Accident  and  Guarantee  (pp.  297-8). 

Mining   News : — Wolhuter  —  Cordoba  Copper  —  Le  Roi  No.  2 

—  United  Collieries  —  United  National  Collieries  — 
Tweefontein  Colliery  (p.  299). 

Egyptian  Cotton  Crop  (p.   298). 

The  Week  in  Mines  (p    299). 

Mining  Returns  for  February  (p.  299). 

The  Week's  Stock  Markets  (pp.  302-3). 

London  Produce  Markets  (pp.  303-4). 

Oilfields  Production  (p.  304). 

Books  Received  (p.  304 1. 

February  Rubber  Outputs  (pp.  305-6) . 


Money  and  Credit  Notes  : — Slight  Flutters  in  Credit  —  Bank 
Return  —  Lord  Cunliffe  on  the  Bank's  Position  — 
Chambers  of  Commerce  and  Bank  Reform  —  United 
States  and  Silver  —  Exchange  Fluctuations  —  Count 
Roedern  on  German  Credit  —  Port  of  London  Issue  — 
Tees  Power  Station  Co.,  Ltd.  —  Silver  (pp.  300-2). 

Balance  Sheet  Facts  : — River  Plate  Trust,  Loan,  and  Agency 
Co.  —  Webley  and  Scott  (p.  306  and  p.  308). 

What  Balance  Sheets  Tell :— Bank  of  Bengal  —  Bilbao  River 
and  Cantabrian  Railway  Co.  —  Bristol  Tramways  and 
Carriage  Co.  —  Savoy  Hotel  —  William  Whiteley  — 
Linoleum    Manufacturing  Co.  —  Venesta  —  Spratt's  Patent 

—  C.  and    E.     Morton   —    De     Dion    Bouton     (1907)    — 

—  Ransomes,  Sims  and  Jeffries  (p.  309). 

Company  Meetings  : — The  Employers'  Liability  Assurance 
Corporation  —  The  London  Assurance  —  Rolls-Royce,  Ltd. 


—    Messina    (Transvaal)     Development    Co. 
London  News  and  Sketch  (pp.  310-11). 

Dividends  Announced  (p.  306). 

Company  Results  in  Brief  (p.  306). 

Tea,  Oil,  and  Rubber  (p.  308). 

Public  Income  and  Expenditure  (p.  308). 

Notes  on   Books  (p.  309). 

Traffic  Returns  (p.  312). 

Answers  to  Correspondents  (p.  312), 


Illustrated 


CANADA. 

THE  DOMINION  BANK. 

Head  Office,  TORONTO. 
Total  Assets    •      -    $109,436,000. 

SIR   EDMUND  B.    OSLER,  President. 
W.  D.   MATTHEWS,  Vice-President. 
C.   A.   BOGERT,  General  Manager. 


London  Branch,  73,  COBNHILL,  E.C.  3. 

J.  HAYDN  HORSEY,  Manager. 


Dealers  in  Canadian  and  American   Exchange. 
General  Banking  business  transacted.    Informa- 
tion furnished  regarding  Canadian  matters. 


lOYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  1727, 

PAID-UP  CAPITAL £2,000,000 

REST  AND  UNDIVIDED  PROFITS  914,968 

DEPOSITS 26,177,865 

Head    Office:    ST.    ANDREW    SQUARE,   EDINBURGH. 
Cashier  an^i  General  Manager,  A.  K.  Wright.         Secretary,  J.  B.  Adshead. 

London    Office:    3,    BISHOPSGATE,  E.C.  2. 
William  Wallace,  Manager.  Alex.  Dick,  Deputy-Manager. 

Glasgow  Office:     EXCHANGE  SQUARE. 
A,  Dennistol-n,  AgenE.  Thomas   Lillie,  Sub-Agent. 

167  Branches  throughout  Scotland. 
Banking  Business  of  every  description  transacted.  Accounts  opened  and  Agency 
business  undertaken  for  Foreign  ind  Colonial  Banks  and  other  financial  estab- 
lishments. Drafts,  Circular  Notes,  and  Letters  oF  Credit  issued  —  available 
throughout  the  world.  Cable  transfers  are  also  made.  Deposits  reoeived  at 
interest  repayable  at  oaJl  or  at  notice.    Corraspondence  invited. 


THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 
Paid-Dp  Capital    ..    £150,000    0    0     2;,ooo  Shares  of  f  10  each. 
■uent  Fund  . .    . .  JBTOO.OOO    0    0  |  Reserve  Profits    . .  £16,085 

Bsservao  uaDllitv  of  Shareholders  £290.000. 

Uoifts  Issued    Kemituiiees  cabled.  Bills  negotiated   or  collected,     Deposits 

reoeived  tor  fixi'd  pitricd^  ai  rates  to  oe  ascertained  on  application,  and  all 

banWing  and  exchange  business  connected  with  Western  Australia  conducted 

tbrougk  the  London  Afsents,  Tbs  Bank  of  Adetald*,  11,  Laadontaall  BC,  B.0.1, 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  0/   the  Imperial 
Japanese  Government,  1899. 

HEAD   OFFICE      -      -      TAIPEH,    FORMOSA. 


BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samaraog, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  japan.) 
ESTABLISHED    1B80. 

Subscribed  Capital        Ven  48,000,000 

Capital  Paid  Up Yen  36,000,000 

Reserve  Fund         ..        ..  ..    Yen  22,100,000 

Hrad  Office :   YOKOHAMA. 
Branches  and  Agencies  at 
Bombay.  Honolulu.  New  York.  Singapore. 

Calcutta.  Hong  Kong.  Osaka.  Sydney. 

Changchun.  Kobe.  Peking.  Tientsin. 

Dairen  (Dalny).  Los  Angeles.  Rangion.  Tokyo. 

Fengtien  (Mukden).       Lyons.  San  Francisco.  Tsinanfu. 

Hankow.  Nagasaki.  Seattle.  Tsingtau. 

Harbin.  Newchang.  Shanghai. 

The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  transacts  General  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  apfilicaticn. 
London  OiBce :  7,  BISHOPSGATE.  E.C.t. 

K.  TATSUMl,  Manager. 


THE   BANK  OF  ADELAIDE. 

(Incorporated  by  Act  of  Parliament,  1865.) 
Authorlswl  Capital         ■    fi1.D«),000.  Subscrlbsd  Capital    •    -    £125,000 

Paid-up  Capital        £500.000 

Reserve  Fund  5*°i°°° 

£1,040,000 

Uncalled  Capital 115.000 

Reserve  Liability  of  Shareholders       faS.ooo 

£1,790,000 

London  Office— 11,  Leadenhall  Street,  E.C.  3, 

BILLSon  Australasia  purchased  or  collecied. 

DRAFTS  issued  and  REMITTANCES  cabled. 

DEPOSITS  reoeived  for  fixed  periods  at  rates  to  be  ascertained  on  ^JP'!""""- 


2go 


Zbc  Jnveetore'  IReview* 


March  23,  1918. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office  t  IS,  Graccchurch  Street,  London,  E.C.  3. 


Cftpital  Authoriied 
Capital  Issued 
Capital  Paid  Up  ... 
Rcierve  Fund 


£1,500,000 

1,125,000 

562,500 

600,000 


Brjtnches  t 

INDIA,   BURMAH,   CEYLON,    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS,    MAURITIUS. 

The  Bank  buy«  and  sells  Bills  of  Exchanje,   issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  liast,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  ouprant  aooounts  interest  is  allowed  at  3  per  cent,  per  annum  on 

daily  balances. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital  £4,000  000 

Paid-up  Capital 1,800,000 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendoza,  Concordia,  Bahia 
Blanca,  Cordoba,  Tucuman,  Parana,  Barracas  (Buenos  Aires),  Once 
(Buenos  Airesi,  Boca  (Buenos  Aires),  Calle  Sania  Fd  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires)  URUGUAY.— .Vlontevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agencv),  Salto 
(Agency),  BRAZIL.  —  Rio  de  Janeiro.  Sao  Paulo,  Santos,  Per- 
nambuco,  Para,  Bahia,  Victoria,  Curityba,  Manaos  (Agency),  CHILI— 
.  Valparaiso,  Santiago,      FRANCE— Paris  (i5  Rue  Haldvy).     Agency  in 

New   York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 

advanced  upon  or  sent  for  collection,- 7,  Princes  Street,  E.C.  2. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

Head  Office— 7,,  Old  Bro^d  Street,  E.C. 

Subscribed  Capital  jg^  276,747     10 

Paid  up  Capital      ..       •. 'sesieSS      O 

Resetve  Fund  and  Undivided  Profits         ..  375  680   1  1 

Reserve  Liability  of  Proprietors       ..         ,.  606962    10 

REMITTANCES  made  by  CABLE. 
DRAFTS    LETTERS  Of  CREDIT  and  CIRCULAR  NOTES  isaaed  upon 

Branches  and  Agents.  *^ 

BILLS  on  Australasia  NEGOTIATED  or  sent  for  collection. 
DEPOSITS  RECEIVED  for  periods  and  at  rates  which  may  be  asoerta'iMd 

oil  application,  and    Banking    Business   of    every  ducrtptioa    ooaduo«ed 

wilA  Aastralia. 


o 
o 

8 

0 


ENGLISH,    SCOTTISH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

■Cead  Offioe— 38,  XjOKntjapd  Sti<se«,  HJ.C  3. 

Subscribed  Capital £1,078,875    o    o 

Paid-up  Capital '    539437  10    o 

Further  LlabiUly  ot  Proprietors      ..         ..  J«  4 w  10    o 

Reserve  Fund 5=^;^^    0    0 

.hJ'nlu^'*!  °7  CREDIT  and  DRAFTS  on  the  Branches  and  Agencies  of 
S  .h.  S=nE  ^,!!  m"'"!!,''^,"..''*  ?•"?'"«<>  «'  ">e  Head  Office,  or  through  The  Agents 
of  the  Bank,  In  the  chief  Provincial  towns  throughout  the  United  Kingdom, 
REMITTANCES  made  by  TELEGRAPHIC  TRANSFER, 
BILLS  NEGOTIATED  or  forwarded  for  COLLECTION. 
Au°*raIU.'^°  '""^  BXCHANGE  Business  of  every  dewsription  transacted  with 

E.  M.  lANION   Manager. 


BANK    OF    NEW    ZEALAND. 

{Incorporated  July  iglh,  1861.) 
T       T^^^I^  "^^  ™^  "E^  ZEALAND  GOVERNMENT, 
London  Office:  i,  Queen  Victoria  Street,  London,  E.C.  4 

AUTHORISED  CAPITAL        f 5,500,000 

SUBSCRIBED  CAPITAL. 

f°."f,  PS' *-/°'-^"*™"«ed  Slock         ..  r.^„., 

B"  w.lV.'n"  Sh^'V^s-ed  '0  New  Zealand  Government        V       i^'^ 

Ordio^y'sh^e"  ^"r"'  '""'"'  '°  ''*"  ^^=""><'  Governm«.,        "       l^Z 

1. 500.000 

Reserve  Fund  and  Undivided  Profits ^'■77i-i^ 

Negotiates  and  collects  Bills  of  Eichange «.*.»4o>595 

Grants  tlrafts  on  its  OlTices  in  New  Zealand,  Australia.  Fiii  and  Samoa      R. 

miitaaoeamade  by  telegraphic  tnntfer,  •"""•»"«,  "i"  and  !>amoa.    Re- 

ADEXANDER  KAY,  MaMi«w, 


BANKS. 


BANK  OF  NEW  SOUTH  WALES 

Eilablishtd  W7. 

Paid  up  Capital £3,904,860 

Reserve  Fund     2,875,000 

Reserve    Liability   af 

Proprietors     3,904,B60 

g1 0,6a4ji720 

H«ad  Office  :  SyDHEY,  HEW  SOUTH  WALEg. 
London  DIrectori : 

Sir  Frederick  Ghekn,  Chairman. 
H.  L.  M.Trittoh,  Esq. Walter  S.  M.  Bi;rns,  Esq. 

David  George,  Uanagn.  J.  S.  CAarsELL,  Sicrtlary. 

Halkerstone  Meldpuw,  David  Geddte, 

AssUlanI  Uanagtr.  Accountant. 

The  Bank  has  331  Brandies  and  Agenclai  in  the  Australian  States, 
New  Zealand,  Fiji,  Papua  (Npw  Guinea),  and  London,  and  Agents  and 
Correspondents  all  over  the  World,  on  whom  the  London  Office  grants 
Circular  Letters  of  Credit  and  Circular  Notes,  Also  issues  Drafts  on 
demand.  Makes  Mail  and  Cable  Transfers,  Negotiates  and  Collects 
Bills  of  Exchange,  Receives  Deposits  (or  Fired  Periods  on  terms 
which  may  be  known  on  application,  and  transacts  every  description  of 
Austrilian  Banking  business, 

London  Office:  29,  THREADNEEDLB  STREB^T,  B.C.  2. 


The  union  BANK  of  AUSTRALIA 

Established  1837,  LIMITED.  Incorporated  it8o. 

Authorised  and  Issued  Capital,  f6,ooo,ooo. 

Paid-up  Capital,  £2,000,000 ;  Reserve  Fund,  £2,000,000 ;  together    £4,000,000 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OFFICE-        -        -        71 ,  CORNHILL,  LONDON,   E.n.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  tbe  Auatraiiau 
States  and  Domini-in  of  New  Zealand, 

TELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection 

DKPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
on  application. 


INSURANCE. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 

£9,T00,000 
or  over  £31,000  for  each  Working  Day. 


THE  PROVIDENT  ASSOCIATION  OF  LONDON 

LIMITED. 

Provident  House,  Bishopsgate,  London,  E.C.  2. 

Founded  1877. 

Authorised  by  Act  of  Parliament,  Intituled 

Provident   Association    of    London    Act,   igio. 

invested  Funds    -    -      £6,822,535. 

Tolal  Advances  upon  House  Property  to  Policy-holders  and 

Certifica;c-holders  exceed 

W.   W.  BENHAM,)      Joint 
J.  J.  GREEN,  i Managers. 

Provident  House,  Bishopsgate,  London,  E.C  2. 


NOTICE. 


JAMES    EADIE.    LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  the  Transfer  Books  of  the 
Debenture  Stock  and  Preference  Shares  of  this  Comp>any  will  be 
CLOSED  from  March  22nd  to  April  5th  (both  inclusi\e). 
By  Order  of  the  Board, 

CHARLES  W.  INSLEY,  Secretary. 


ICbe  ^nveetore'  IRepiew, 


Vol.  XLI.— No.  1,055. 

New  Series. 


SATURDAY,  MARCH  23    1918. 


/Sallstared  as  a' 
\    newtpaper. 


)  Price  6d. 


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Groups  o'  Five  Stocks  for  investment  supplied  at  the  rate  of 
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Passing   Events. 

P'or  some  time  it  has  been  forced  upon  us  that  if  The 
IxvESTOK.s'  Review  was  to  surmount  the  difficulties 
arising  from  increased  cost  of  production,  and  especi- 
ally from  increased  cost  of  paper,  it  would  have  to  be 
to  some  extent  remodelled.  We  have  been  very  re- 
luctant to  make  changes;  but  it  is  now  inevitable,  for 
not  only  is  the  cost  of  paj>er  five-fold  what  it  was  be- 
fore the  war,  but  supplies  have  been  still  further  re- 
stricted. .\s  a  beginning,  therefore,  we  have  decided 
to  discard  our  largest  type  and  print  the  paper  in 
the  smaller  type  hitherto  used  for  reports  of  all  kinds. 
This  will  provide  some  compensation  to  readers  for 
the  reduced  size  of  the  paper,  which  must  come.  We 
shall  try  to  crowd  as  much  into  the  diminished  page 
space  as  possible,  and  to  condense  the  contents  so  as 
to  retain  variety. 


Some  of  the  results  produced  by  the  brilliant  cam- 
paign undertaken  by  the  advertising  agencies  employed 
by  the  (iovernment  are  seen  this  week  in  the  returns 
relating  to  War  Bond  sales.  The  actual  amount  en- 
cashed last  week  was  ;^"34, 987,000,  less  than  in  the  pre- 
ceding week,  but  the  amount  applied  for  was 
;^55,oi3,ooo,  embraced  in  51,526  applications.  The 
total  amount  subscribed  in  War  Bonds  was,  therefore, 
on  Saturday  last  £^577,^23,450,  embracing  456,138 
applications.  These  figures  include  a  considerable 
amount  actually  invested  during  the  Business  Men's 
Week,  March  4  to  9  inclusive.  In  the  fortnight,  there- 
fore, which  contained  that  week,  ^167,034,000  has 
been  added  to  the  total  amount  credited  lo  National  War 
Bonds  sold  by  the  Bank  of  P^ngland,  and  the  impulse 
given  by  the  resolute  campaigning  appears  to  be  not  yet 
wholly  spent.  The  Post  Office  issue  of  National  War 
Bonds  has  also  been  encouraging.  The  figures  for  the 
week  ended  March  9  are  not  yet  available,  although  an 
estimate  of  2,900,000  is  put  out,  rai.sing  the  total  sold 
to  the  public  to  the  date  named  to  ;^22,45o,ooo.  Up  to 
March  9,  the  total  number  of  War  Savings  Certificates 
sold  since  the  issue  began  was  167,315,246,  representing 
^'i  29,669,3 1 5. 


The  revenue  collected  by  the  Exchequer  in  the  week 
ended  March  16  was  ;^2 1,079, 000  from  taxes  and  State 
monopolies.  This  brought  up  the  total  income  of  the 
Exchequer  for  the  fiscal    year    to    Saturday    last    to 


;£"653, 360,000,  or  ;£," 1 4,760,000  more  than  the  Budget 
estimate  of  revenue  for  the  complete  year.  Last  week's 
receipts  were  rather  smaller  than  those  of  the  preceding 
week,  but  still  good  enough  to  warrant  us  in  expecting 
a  revenue  of  at  least  ^50,000,000  in  excess  of  the  esti- 
mate by  March  31,  and  that  is  encouraging  for  the 
future  more  even  than  for  the  time  Ijeing.  Altogether 
last  week's  Exchequer  overturn  was  _;^i  12,096,400, 
which  compares  with  ;^i73, 962,000,  the  aggregate  in 
the  previous  week.  The  principal  .source  of  the  decline 
last  week  lay  in  the  smaller  amount  of  Treasury  bills 
handled,  fresh  issues  having  amounted  to  only 
£.33,269,000,  and  the  repayments  to  £^61,168,000.  Of 
this  larger  amount  paid  off  an  undisclosed  portion  repre- 
sented subscriptions  for  National  War  Bonds,  but  what- 
e\er  the  origin,  thanks  to  the  larger  repayments,  the 
total  of  Treasury  bills  outstanding  has  now  been 
broug'ht  down  to  ;^99  5, 596,000,  a  reduction  of 
£'27,899,000  on  the  week,  and  of  nearly 
£■56,000,000  within  three  weeks.  The  last  date 
on  which  Treasury  bills  outstanding  were  under 
£"1,000,000,000  was  in  the  week  ended  November 
3,  191 7.  The  total  was  then  £^991,036,000.  We  shall 
be  delighted  to  see  the  present  figure  brought  down 
steadily  and  much  further,  because  it  will  show  that  the 
country  is  resolutely  providing  fresh  means  with  which 
lo  end  the  campaign  in  the  requisite  triumphant  fashion. 
Expenditure  on  supply  last  week  was  only  ;^46,ooo,ooo, 
or  a  daily  average  of  £'6,571,000.  IncFuding  the  small 
outlays  on  war  debt  interest  and  miscelfaneous  demands, 
the  daily  average  was  £^6,747, 000,  quite  a  soothing  re- 
duction as  things  go,  but  that  does  not  include 
£"1,000,000  devoted  to  the  sustenance  of  war  loan  prices 
on  the  market,  or  to  ""  depreciation."  Besides  th(> 
Treasury  bills  paid  ofif,  ;^i,29i,45o  of  War  Loan  and 
Exchequer  bonds  were  redeemed,  as  also  ;^52,ioo  of 
Expenditure  certificates,  presumably  converted  into 
National  War  Bonds.  There  was  also  ^378,31.^ 
debited  to  tiTP.China  indemnity,  and  ;^i,025,ooo  of  tem- 
porary advances  were  paid  off  against  £"7,500,000 
raised,  so  that  the  actual  increase  in  this  form  of  debt 
was  £^6, 475,000.  The  revenue  proved  £"2,066,000 
short  of  meeting  the  demands,  consequently  Exchequer 
balances  were  reduced  bv  that  amount  to  /ri4,665,4q3. 
.\  year  ago  they  were  £"32,194,000.  It  will  be  very  in- 
teresting to  have  these  figures  classified  and  unravellcjl 
when  the  Budget  comes  to  be  presented. 


igi 


Zbc  Jnvestote'  IRevtevO. 


March  22,  1918. 


At  last  we  have  been  told  the  main  facts  alx)ut 
shipping  losses,  and  they  are  not  so  alarming  as  public 
rumour,  sustained  by  sccretivcness,  led  the  nation  to 
fear.  From  the  beginning  of  the  war  until  Decem- 
ber 31  last  Sir  liric  Ck;ddcs,  First  Lxjrd  of  the 
Admiralty,  told  the  House  and  the  country  on  Wednes- 
dfiy  evening,  the  nett  figure  of  the  world's  tonnage,  ex- 
clusive of  enemy  tonnage,  has  been  reduced  by, 
roughly,  2,500,000  gross  tons.  'ITiat  is  out  of  a  pre- 
war total  of  33,000,000  gross  tons  of  estimated  Allied 
and  neutral  ocean-going  tonnage.  We,  our  Allies,  and 
the  neutral  world  have,  therefore,  suffered  a  reduction 
of  about  8  per  cent,  in  the  ocean-going  tonnage,  but 
the  nett  loss  of  Hritish  tonnage  alone  has  reached  about 
20  per  cent.,  or  3,500,000  tons,  on  a  total  of  18,000,000, 
and  that  is  bad  enough  to  account  for  a  much  worse 
food  deficiency  than  anything  we  have  yet  experienced  ; 
especially  bad  is  it  in  view  of  the  fact  that  so  large  a 
proportion  of  our  shipping,  at  least  half,  is  taken  up 
with  military  service.  The  figures  are  none  the  less 
satisfactory,  and  Sir  Eric  had  also  .something  more 
encouraging  than  was  hoped  for  to  state  about  the 
production  of  new  shipping  and  the  repair  of  ships 
damaged.  At  present  there  are  47  large  shipyards, 
containing  209  berths,  actually  engaged  in  building 
ocean-going  merchant  ships,  and  in  the  fourth  quarter 
of  191 4  there  were  420,000  tons  of  such  ships  produced, 
whereas  in  the  fourth  quarter  of  1915  the  production 
was  down  to  92,000  tons.  From  that  figure  it  has 
risen  steadily  to  the  420,000  tons  just  mentioned,  and 
in  the  same  last  quarter  of  1917  foreign  construction 
was  512,000  tons,  fjiving  a  total  of  932,000  tons  for 
one  quarter  of  the  year. 


At  this  pace  we  ought  soon  to  make  good  all  our 
losses,  especially  as  the  work  of  repairs  has  been 
equally  active.  In  February,  igi8,  as  compared  with 
August,  1917,  the  increase  in  the  average  weekly 
output  has  been  80  per  cent.,  or  69  ships,  representing 
237,000  tons  a  week.  In  February  repairs  of  merchant 
craft  at  an  average  of  166  ships  a  week,  representing 
more  than  500,000  tons,  were  completed,  while  last  year 
ten  times  the  naval  craft  for  repairs  and  refits  was 
docked  than  in  peace  times,  and  over  3,000  of  these  war 
vessels  were  docked  and  refitted  in  the  final  quarter  of 
la.st  year.  During  the  last  seven  months  lalx)ur  in 
private  yards  has  been  increased  by  about  8,000,  mainly 
unskilled  hands,  and  the  number  of  skiiSled  men  is 
likewise  being  steadily  added  to.  This,  if  the  complete 
truth,  is  all  satisfactory,  so  much  so  that  we  are  half 
disposed  to  regret  that  the  truth  as  it  is  has  been  made 
public,  for  dread  of  something  much  worse  was 
beginning  to  stimulate  workmen  where  stimulus  was 
required.  As  usual,  Sir  Eric  Geddes  wound  up  by 
announcing  still  another  appointment,  that  of  Lord 
Pirrie  as  Controller-General  of  Merchant  Shipbuilding, 
directly  responsible  to  himself  as  First  Lord.  Lord 
Pirrie  is  a  man  of  wide  experience  and  remarkable  skill 
in  shipbuilding.  As  controller  of  the  famous  Harland 
and  Wolff  yard  at  Belfast  he  probably  stands  first 
among  builders,  and  he  should  therefore  be  able  to  do 
much  to  speed  up  production,  by  clearing  away  the 
obstruction  springing  from  a  multiplicity  of  officials 
and  of  departments.  By  unselfishly  giving  the  benefit 
of  his  unrivalled  skill  and  experience  to  the  nation, 
and  by  dealing  equitably  and  generously  with  the  men, 
he  will  also  further  the  speeding-up  most  effectively. 


Naturally  there  were  criticisms  of  Sir  Eric's  pre- 
sentment of  the  facts,  but  on  the  whole  the  House  and 
the  country  seem  to  have  accepted  his  story  with  a 
sense  of  relief.  A  few  of  the  summary  figures  quoted 
by  us  were  reviewed  and  corrected  by  Mr.  Asquith  in 
the  brief  speech  he  was  allowed  to  make  at  the  end  of 
the  discussion.  The  corrections  were  not  made  in  any 
spirit  of  captiousness,  but  simply  with  a  view  to  make 
.the  facts  more  plain.  In  1915,  said  Mr.  Asquith,  the 
total  losses  of  the  United  Kingdom  shipping  alone 
from  all  causes  was  roughly  1,100,000  tons.  In  1916 
they  rose  to  1,500,000  tons,  of  which  by  far  the  largest 


item  in  the  list  was  in  the  last  quarter,  when  they  rose 
from  284,000  tons  in  the  preceding  year  to  no  less  than 
617,000  tons.  For  the  year  just  ended  the  total  has 
been  double  the  previous  year's  figure,  or  3,000,000 
tons,  but  it  would  be  unfair  to  draw  an  inference  from 
this  unfavourable  to  the  vigilance  of  the  supplanting 
Coalition  Government.  That  is  a  point  we  have  no 
desire  to  raise,  but  Mr.  Asquth's  concluding  sentences 
deserve  to  be  summarised.  Speaking  about  the  dis- 
quietude which  has  existed  regarding  our  shipping 
position,  he  pointed  out  that  it  was  largely  due  to  two 
causes,  first,  to  the  misleading  estimates  from  time  to 
time  put  forwaid  as  to  merchant  shipbuilding,  and, 
secondly,  to  non-disclosure  of  the  tonnage  facts  and 
figures  in  regard  to  both  losses  and  construction,  a 
defect  now  remedied.  We  hope  in  future  that  there 
will  be  less  disposition  to  soothe  people's  minds  by 
glowing  estimates  founded  upon  an  ill-balanced  opti- 
mism of  mind,  and  that  periodically  the  facts  about 
losses  and  about  production  will  be  made  public.  And 
we  hope,  too,  that  Lord  Pirrie  is  going  to  prove  as 
great  a  success  in  public  service  as  he  was  when 
master  of  Harland  and  Wolff's,  and  a  great  Irans- 
.^tlantic  shipping  potentate. 


Nothing  could  well  exceed  the  disagreeableness 
excited  in  people's  minds  by  Chat  Marconi  s.ui/t  against 
the  Postmaster-General.  So  bad,  apparently,  was  the 
case  of  the  Government,  that  it  ought  never  to  have 
been  fought.  If  the  Marconi  Co.  was  right — as  the 
withdrawal  of  the  law  officers  of  the  Crown  iifter  the 
hearing  had  gone  on  for  several  days  seems  to  prove — 
then  to  whose  .stupidity  do  we  owe  the  raking  of  this 
scandal  into  the  people's  sight?  The  Marconi  Co.  al- 
leged breach  of  contract,  and  claimed  damages.  Its 
contention  and  claim  have  been  proved  well  founded. 
The  contract  is  accepted  and  damages  will  be  p;tid. 
'Phat  lis  all  right,  and  need  have  cau.sed  no  waste  of  the 
tax,payers'  money  in  feeing  Sir  Edward  Carson,  and 
other  able  advocates.  Had  it  ended  there  we  should 
have  had  nothing  to  say,  but  in  the  course  of  the  hear- 
ing Mr.  Godfrey  Isaacs  accused  the  Postmaster-General 
(Sir  Charles  Hobhouse)  with  w,hom  they  had  to  deal  ol 
breach  of  faith.  It  was  alleged  that  Sir  Charles  Hob- 
house  and  Sir  Henry  Norman  had  entered  into  negotia- 
tions with  the  German  Telefunken  Co.  in  order  to 
induce  it  to  come  here  and  start  in  rivalry  to  the 
British  Marconi  Co.  The  statement,  though  disputed, 
was  circumstantial,  and  before  the  Court  there  was  no 
effective  denial.  One  looked  to  see  the  gentlemen  im- 
plicated in  the  witness-box  giving  their  version  of  the 
story,  and  submitting,  if  need  be,  to  cross-examination. 
They  did  not  go  into  the  witness-box,  but  the  Govern- 
ment climbed  down,  accepted  the  es.sential  facts  as  put 
forward  by  the  Marconi  Co.,  and  agreed  to  pay 
damages.  Then  when  all  was  over  and  settled  Sir 
Charles  Hobhouse  in  the  House  of  Commons  declares 
that  the  statements  for  which  Mr.  Godfrey  Isaacs, 
managing  director  of  the  Marconi  Co.,  was  responsible 
"were  wholly  false  and  without  foundation,"  and  pro- 
ceeded to  describe  what  really  took  place.  Sir  Henry 
Norman  was  equally  emphatic  in  his  repudiation,  and 
the  consequence  is  that  the  public  mind  is  left  with  the 
impression  that  there  has  been  something  the  reverse 
of  straight  in  the  dealings  of  the  officials  with  Mr. 
Godfrey  Isaacs  and  his  company.  This  is  most  un- 
fortunate and  disagreeable.  Was  Mr.  Godfrey  Isaacs 
lying?  Was  he  deceived  by  the  Germans,  or  carried 
away  by  the  heat  of  his  own  imagination?  We  do  not 
know,  and  hazard  no  opinion.  But  the  collapse  of  the 
case  and  the  flat  contradiction  of  his  testimony  leaves 
the  public  mind  sorely  f>erplexed. 


Another  very  excellent  year  has  been  experienced  by 
British  Insulated  and  Helsby  Cables,  Ltd.,  the  nett 
profits  to  December  31  showing  an  irrcrease  of  ;£r63,ooo 
at  ;^363,o6o.  With  a  larger  balance  brought  in  the 
amount  available  is  ;^526,7oo,  an  increase  of  ;^66,c)C)o, 
and  this  allows  of  the  dividend  and  bonus  being  raised 
from  20  per  cent,  to  25  per  cent.     Not  only  .so,  but  the 


March  23,  1918. 


XTbe  Jnvestore'  IReview. 


293 


appropriation  to  reserve  is  ;^i8o,ooo,  against  ;^"'70,ooo, 
.and,  as  already  announced,  it  is  proposed  to  capitalise 
half-a-million  of  the  reserves  with  the  object  of  giving 
one  new  share  for  each  share  at  present  held.  After 
setting  aside  ;^io,ooo  more  at  ;^3o,ooo  for  depreciation 
of  buildings  and  plant,  the  carry  forward  is  reduced  by 
;^'8o,ooo  to  ;^"84,8oo.  The  company  is  in  an  enor- 
mously strong  position,  and  the  directors  seem  per- 
fectly justified  in  bringing  the  capital  account  more 
into  harmony  with  the  amount  actually  expended  in  the 
business,  especially  as  patents  and  goodwill  represent- 
ing ;^^25i,67o  have  been  completely  written  off.  After 
carrying  through  the  proposed  duplication  of  ordinary 
shares  the  reserve  will  stand  at  ;£^ic>o,ooo,  in  addition 
to  the  substantial  carry  forward.  Creditors  have  in- 
■crcased  ;£^420,ooo  to  ;^8o4,ooo,  but,  on  the  other  hand, 
oash  has  risen  jQzyo^ooo  to  ;^"646,ooo,  and  there  are 
in  addition  investments  in  War  Loans,  &c.,  amounting 
to  ;^"297,ooo,  against  ;^"io,ooo  a  year  agio. 


It  was  only  to  be  expected  under  existing  conditions 
that  the  British  Aluminium  Co.,  Ltd.,  should  make 
large  profits  in  spite  of  the  fact  that  the  whole  output 
of  the  metal  has  been  used  for  munitions  purposes,  and 
the  price  fixed  by  the  Government.  Trading  profits 
last  year  amounted  to  ;^423,66o,  an  increase  of 
j^44,ooo,  which  follows  a  gain  of  ;^67,ooo  in  i9r6. 
Income-tax  and  other  expenses  absorbed  ;^30,ooo 
more  at  ;^'io3,ooo,  and  ;^'io,goo  more  at  ^70,000'  is 
set  aside  for  dfcpreciation,  while  ^'j~„ocio  is 
again  placed  to  reserve,  raising  it  to  ;£,40o,ooo.  The 
•dividend  of  10  per  cent,  is  repeated,  and  as  ^2^,000 
more  was  brought  in  the  carry  forward  is  ^'6,000 
larger  at  ;633,2oo.  Capital  expenditure  during  the 
jear  was  ^'92,400,  against  ;^i30,4oo,  and  the  only 
•other  change  of  importance  in  the  balance-sheet  is  the 
increase  of  ^a  50,000  in  reserve  fund  investments,  rais- 
ing the  total  to  ^^220, 600.  It  is  stated  that  the  costs 
■of  production  show  further  large  increases,  owing  to 
the  continued  advance  in  materials,  labour,  and 
freights,  while  the  maintenance  of  supplies  of  raw 
materials  at  the  various  works  in  the  United  King- 
dom and  Norway  has  been  increasingly  difficult. 


During  the  past  year  the  authorised  capital  of  Lever 
Bros.,  Ltd.,  was  increased  to  ^"40,000,000,  and  the 
paid-up  capital  is  now  ;^i5,203,ooo  (an  increase  of 
;^i,  180,000),  divided  between  nine  different  classes  of 
shares.  Nett  profits  were  ;^254,ooo  larger  at 
;^i,6o9,ooo,  and  the  dividend  on  the  ordinary  shares 
Is  raised  from  10  per  cent,  to  15  per  cent.,  which 
absorbs  ;^30o,ooo,  against  ;^20o,ooo.  Repairs  and 
renewals  required  ;^4o,ooo  more  at  ;^i 25,700,  and 
;^24,ooo  more,  at  ;^i23,30o,  was  set  aside  for  depre- 
ciation. After  paying  the  preference  and  other  divi- 
dends, the  balance  of  ;^5,58o  is,  as  usual,  carried  to 
reserves,  the  total  of  which  will  then  be  almost 
;^i,4oo,ooo.  Creditors  have  increased  ;^2go,ooo  to 
^1,850,000,  debtors  ^190,000  to  ;^8o8,ooo,  stocks 
;^440,ooo  to  ;£3, 434,000,  and  interests  in  associated 
•companies  ;^93o,oc)o  to  ;^i  1,393,000.  It  is  a  wonder- 
ful business,  and  we  note  with  satisfaction  that  the 
share  of  the  employees  under  the  co-partnership 
arrangement  has  risen  ;^6o,ooo  to  ;^i3o,830'. 


18  per  cent.  Changes  in  the  balance-sheet  are  unim- 
portant, except  for  an  increase  of  ;^2 12,000,  to 
;£,"370,ooo,  in  the  cash  holdings.  It  is  a  fine  old  com- 
pany, which  has  always  been  well  managed,  and  after 
passing  its  three  score  and  ten  years,  it  is  stronger  than 
ever.  The  factory  at  Concepcion  (Chile),  which  was 
burnt  down  in  1916,  has  been  rebuilt  on  a  larger  scale, 
and  work  was  restarted  in  November. 


Exact  comparison  of  the  results  of  Borax  Consoli- 
dated, Ltd.,  for  the  year  to  September  30  last  is  not 
possible,  as  the  profits  on  this  occasion  are  stated  after 
making  provision  for  excess  duty.  They  consequently 
show  an  apparent  decrease  of  ;^"i8o,ooo  at  ^419,200, 
and  the  nett  profits  are  ;^i84,ooo  lower  at  ^^385, 500. 
But  the  directors  feel  justified  in  repeating  the  dividend 
of  15  per  cent,  after  again  placing  ^^25,000  to  reserve 
and  starting  a  pensions  fund  with  ^10,000.  On  the 
other  hand,  the  amount  written  off  for  depreciation  of 
buildings  and  plant  is  ;^  10,000  less  at  ;^40,ooo,  and 
last  year  ;^  130,000  was  set  aside  as  provision  for  excess 
duty,  with  the  result  that  the  carry-forward  is  reduced 
by  only  ;^2o,ooo  to  ;^92,7oo.  TTie  company  has  had 
difficulties  with  regard  to  freightage,  but  it  has  been 
a  well-managed  concern,  and  it  is  in  a  very  strong 
position. 


Price's  Patent  Candle  Co.,  Ltd.,  had  another  record 
year  to  December  31,' the  nett  profit  being  ^^300, 150, 
which  compares  with  ;^2ii,400  for  1916  and  ;^i43,i5o 
for  1915.  It  is  necessary,  however,  to  set  aside 
;^i5o,ooo,  or  ;^7o,ooo  more,  for  excess  profits  duty,  and 
the  balance  available,  including  ;^8,ooo  more  brought 
in,  is  ;£'27,ooo  higher  at  ;^i72,36o.  After  writing  off 
the  usual  ;^io,ooo  for  depreciation  of  buildings  and 
plant,  and  placing  ;^io,oc>o  (new)  to  reserve,  it  is 
proposed  to  pay  a  dividend  and  bonus  of  £2  17s.  6d. 
({of  which  20s.  has  been  distributed  as  interim),  against 
£2  I2S.  6d.  for  the  previous  year,  and  £2  7s.  6d.  for 
1915,  leaving  ;^7,ooo  more  at  ;^29,550  to  be  carried 
forward.  The  shares,  we  may  mention,  are  ;^i6  each, 
fully   paid,    so  that    the   dividend   is   equal   to   almost 


Mr.  Malan,  the  South  African  Minister  of  Mines, 
made  a  very  interesting  speech  in  moving  the  appoint- 
ment recently  of  a  Select  Committee  to  consider  the 
position  of  the  low-grade  mines.  Since  the  war  broke 
out,  the  average  cost  of  mining  on  the  Rand  has  risen 
3s.  to  20S.  per  ton.  Twenty  of  the  Ic^est-grade 
mines,  Mr.  Malan  pointed  out,  have  had  to  reduce 
their  production  in  1917  by  about  a  million  pounds 
owing  to  certain  ore  being  no  longer  profitable  to 
treat,  and  because  of  the  shortage  of  labour.  In  wages 
and  stores  these  companies  paid  out  ^8,275,000  per 
annum,  so  that  their  stoppage  would  cause  a  serious 
economic  problem  in  South  Africa.  In  July,  1914, 
there  were  13  gold  mines  on  the  Rand,  making  a  total 
working  profit  of  only  ;^45,i95,  equal  to  an  average 
of  2s.  sd.  per  ton.  In  July,  1917,  only  10  of  these 
companies  were  working.  The  profit  in  that  month 
was  ;£9,05o  (two  were  working  at  a  loss),  equal  to 
7d.  per  ton  milled.  "  If  only  the  older  mines  had  been 
taken,  and  the  seven  or  eight  mines  recently  started 
had  not  begun  work,  the  position,  said  Mr.  Malan, 
would  have  been  much  more  serious.     The  Ginsberg, 


THE 


LONDON  CITY  &  MIDLAND 
BANK  LIMITED. 

Head  Office :  5,  THREADNEEDLE  ST.,  LONDON,  E.C.2. 
Foreign  Branch  Office:  8,  Finch  Lane,  London,  E.C.  3. 


Subscribed  Capital 
Paid-up  Capital 
Reserve  Fund  - 


£24,906,432 
5,188,840 
4,342,826 


Deposits 


Cash  in  hand  and  at  Banic  of 

England 
Money  at  Call  and  Short  Notice 
Bills  of  Exchange 


£220,551,768 


44,110,353 
31,003,560 
35,052,991 


OVER  1,000  OFFICES  in  the  UNITED  KINGDOM. 

This    Bank    will     collect     foi*    its 
Customers     free   of    commission,  . 
cheques   on  the    Belfast   Banking  ' 
Company  Limited.  ij;i  nl 


2<j4 


Zbc  Jnvestois'  IRevicw. 


March  23,  1918. 


Durban  Roodepoort,  Glcncairn,  and  Primrose  are 
approaching  exhaustion.  These  mines  crush  50,000 
tons  a  month.  Almost  another  50,000  tons  are  treated 
by  the  Bantjes  and  Knight  Central,  at  lx>th  of  which 
cfosmg  down  was  contemplated  six  months  ago.  The 
Robinson,  which  also  crushes  50,000  tons  a  month,  can 
scarcely  outlast  the  present  year.  Mr.  Malan  men- 
tioned that  several  suggestions  had  been  made  for 
meeting  the  situation.  The  first  was  a  bounty  either 
on  tonnage  milled  or  on  the  ratio  of  profit  to  working 
costs.  But,  as  Mr.  Malan  said,  it  is  doubtful  whether 
this  form  of  assistance  is  desirable.  The  second  sug- 
gestion was  that  a  loan  should  be  made  to  the  com- 
panies, repayable  after  the  war,  but  it  is  questionable 
whether  this  would  effect  anything.  A  third  sugges- 
tion was  a  reduction  in  taxation,  but  the  low-grade 
mines  do  not  pay  much  in  direct  taxation.  Another 
proposal  was  that  the  insurance  and  freight  charges, 
which  since  the  war  have  been  raised  from  7s.  yd.  10 
25s.  per  cent.,  should  be  reduced  to  the  pre-war  level, 
which  would  save  the  mines  ;^400,ooo,  which  could  be 
used  to  assist  the  low-grade  properties.  The  problem 
is  a  difficult  one,  but  the  situation  is  urgent,  for  unless 
assistance  is  shortly  forthcoming,  a  number  of  mines 
will  be  closed  down.  In  any  case,  the  production  of 
gold  will  be  much  smaller  this  year  than  lajt. 


A  "  League  of  Nations"  with  Russia 
<   :  ^  >    .  v^  Enslaved. 

Everybody  will  sympathise  with  Lord  Lansdowne  in 
his  efforts  to  form  a  "  League  of  Nations."  The  sub- 
ject camg  up  in  the  House  of  Lords  on  Tuesday,  when 
Lord  Parmoor  moved  :  "  That  this  House  approves 
the  principle  of  a  League  of  Nations,   and   the  con- 

'  stitution  of  a  tribunal  whose  orders  shall  be  enforce- 
able by  an  adequate  sanction."  No  doubt  that  is  an 
ideal  to  be  cherished  and  struggled  for,  but  much  as 
we  may  sympathise  with  the  aims  of  these  privileged 
and  noble  personages  we  share  the  fear  of  Lord 
Parker  that  "  we  run  some  risk  of  being  in  too  great 
a  hurry  in  the  matter."  "  International  law,"  he 
asserted,  "as  an  instrument  of  peace  can  have  no  per- 
manency," and  the  very  terms  of  Lord  Parmoor's 
niotion  shows  that  it  could  have  none.  "  A  tribunal 
whose  orders  shall  be  enforceable  by  adequate   sanc- 

^tion,"  says  the  motion.  Who. is  to  enforce,  and  how? 
To  ask  a  question  of  that  kind  is  to  show  that  the 
dreamers  must  go  further  and  probe  deeper  into  the 
lieart  of  the  question.     We  want  to  see  a   "  League 

■  yof  Nations  "  formed  by  the  common  accord  and  assent 
pf  civilised  peoples,  a  league  from  which  no  race  or 
nationality  shall  be  excluded,  not  even  German;  but 
before  any  such  ideal  can  be  cherished  with  a  hope 
of  its  practicability,  militarism  has  to  be  destroyed,  not 
jnerely  Prussian  militarism,  but  militarism  everywhere, 
the  militarism  which  has  its  foundation  in  privilege, 
in  the  "  rights  "  founded  on  force  by  which  a  hand- 
ful of  people  within  a  nation  or  community  not  only 
guide  its  affairs,  but  hold  the  lives  of  their  fellow 
citizens  in  their  hands.  A  mere  international  tribunal 
set  up  on  the  model  of  the  Hague  Tribunal  will  accom- 
plish nothing  unless  the  nations  behind  it  are  divested 
of  selfish  purposes,  of  exclusive  rights  and  privileges, 
and  are  genuinely  imbued  with  that  sense  of  brother- 
hood which  must  be  the  foundation  of  any  durable 
international  concord.  Probably  no  harm  can  be  done 
by  Lord  Lansdowne  and  his  fellow  dreamers,  because 
Germany  takes  care  that  none  shall  be  possible.  No 
influence  has  so  effectually  silenced  and  put  to  shame 
our  pacifists  as  the  exhibitions  we  have  had  of  German 
unscrnpulousness  and  rapacity  in  Russia,  of  German 
hypocrisy  also  as  nauseatingly  displayed  in  the  latest 
utterance  of  that  curious  creature,  Count  Hertling, 
according  to  whom  Russia  has  been  made  "free" 
through  Prussian  aggression,  and  the  annexed  western 
provinces  become  "  independent  "  and  "self  govern- 
ing,"    The.  man  ignores  the  vaunts  ot  his  Kai.ser  ! 

•_  With  the  spectacle  of  what  the  Prij^gian.s.are  doing 
in  Russm'~bSR>re'"tTibir'eye9,  how"  can   any  free  miin 


advocate  treaties  with  such  an  abandoned  caste  or  hope 
to  convince  his  fellow-countrymen  that  good  could  come 
of  negotiations  therewith?  Even  Lord  Lansdowne 
admits  that  we  can  make  no  treaty  with  the  Berlin 
horde.  We  pay  too  little  attention  to  the  agony  of 
Russia  at  the  present  time,  but  at  least  we  should  be 
conscious  more  and  more  of  the  cynical  indifference  to 
all  humane  feelings  and  all  national  and  individual 
rights  now. being  exhibited  by  the  Prussians  let  loose 
in  Russia,  and  again  we  say,  Russia  must  not  be 
abandoned  by  the  Allies.  A  short  article  has  been  sent 
to  us  by  the  Russo-British  News  Bureau,  which  is  .so 
much  to  the  purpose  that  we  should  gladly  reprint  it 
were  that  possible.  As  it  is  not,  take  a  point  or  two 
from  it,  and  begin  with  the  last  sentence  of  the 
article.  "  Do  not  forget,"  says  the  writer,  Mr. 
Martens,  "  that  during  the  first  two  years  of  the  war 
Russia  bore  the  brunt  of  the  conflict.  Do  not  forget 
East  Prussia,  Galicia,  &c.,  nor  the  millions  of  lives 
Russia  has  given  for  the  common  cause."  No,  we 
must  not  forget,  although  that  is  a  side  of  the  story 
that  we  have  been  only  too  ready  to  ignore  during  the 
months  of  disappointment  that  have  followed  the  up- 
rising of  the  Lenin-Trotsky  tyranny.  But  Russia  is 
true  still  to  the  Allies,  all  that  is  best  in  her  and  most 
patriotic,  and  the  time  is  at  hand,  if  it  has  not  already 
come,  when  we  shall  have  to  join  the  United  States 
in  sending  sustenance  and  guides  to  help  a  people  in 
sore  distress.  The  Prussian  invaders  are  scattering 
themselves  over  the  country  like  brigands  who,  by 
chicane,  have  cleared  all  opfjosition  out  of  their  way, 
and  think  they  have  now  only  to  abandon  themselves 
to  the  gratification  of  all  their  evil  lusts ;  but  their 
strength  is  nothing  like  so  formidable  as  the  bulletins 
concocted  in  Berlin  would  lead  one  to  supp)Ose,  and  we 
have  a  suspicion  that  already  more  than  one  rallying 
centre  has  been  formed  which  with  nurture  and 
guidance  may  presently  develop  energy  enough  to  take 
in  hand,  with  our  help  and  the  help  of  Japan,  the 
expulsion  of  the  enemy.  His  energies  are  being  drained 
away  elsewhere,  and  his  hold  over  the  Eastern 
Provinces  of  Russia  is  at  best  precarious  until  the  issue 
is  decided  in  the  West. 

All  the  more  should  we  endeavour  to  support  the 
broken  forces  of  the  nation  and  sustain  them.  "In 
Russia,"  says  this  letter  by  Mr.  R.  C;  Martens,  from 
which  we  quote,  "there  is  only  about  half-a-mile  of 
railway  to  each  100  square  miles,  as  compared  with 
nearly  20  miles  in  this  country,"  and  such  railways  as 
exist  have  been  allowed  to  degenerate  by  the  overwork 
of  the  rolling  stock  and  the  want  of  means  to  repair 
it.  Thus  the  railway  traffic  has  become  disorganised, 
and  that  disorganisation  lies  at  the  root  of  Russia's 
economic  crisis,  with  the  result  that  the  Russian  people 
were  unable  to  cont-nue  the  war  to  a  successful  end. 
Mr.  Martens  declares  that  "  no  other  Eurojjean  nation 
beside  the  long-suffering,  patient  and  stoical  Russian 
people,  not  even  the  barrack-drilled  and  inhumanly- 
disciplined  German  people,  could  carry  active  war  to 
the  point  to  which  Russia  has  carried  it."  And  we 
believe  this  true.  Therefore,  the  deliverance  of  Russia 
must  come  before  a  League  of  Nations  to  guarantee  the 
peace  of  the  world. 

During  his  visit  to  Russia  last  year,  Mr.  Martens 
says  :  "I  saw  long  lines  of  flour  queues  in  the  city 
of  Samara,  a  prosperous  city  in  the  agricultural  part 
of  Russia,  and  a  centre  of  the^rain  trade.  The  grain 
warehouses  in  that  city  were  chock-full  of  grain 
at  the  time  of  my  visit.  Large,  modern  steam  flour 
mills,  perfectly  equipped  to  mill  the  grain  into  flour, 
stood  idle  for  want  of  fuel,  which  the  railways  had 
failed  to  bring  them,  and  as  a  result  people  had  to  go 
without  bread  in  that  huge  storehouse  of  grain."  This 
is  given  as  an  instance  typical  of  the  conditions  pre- 
vailing in  that  part  of  agricultural  Russia,  and  in  Cen- 
tral and  Northern  Russia  it  was  much  worse.  Can  the 
Germans  get  at  that  grain?  Is  it  still  in  store?  We 
doubt  it ;  and  although  we  cannot  be  sure,  a  variety 
of  testimony  agrees  in  saying  that  the  plunderers, 
gnawed  by  hunger,  are  not  finding  the  quantities  of 


March  23,  1918. 


XTbe  Jnveetors'  IRevlew. 


295 


food  they  have  come  to  seek.  In  that  fact,  is  there  not 
encouragement  for  us?  Can  we  not  find  means  to 
help  the  Russian  people  to  disperse  and  retain  that 
corn  for  their  own  use  ?  The  Germans  are<  about  to  enter 
Petrograd,  it  is  reported.  Will  they  find  food  there? 
It  is  impossible,  for  the  inhabitants  are  already  starv- 
ing. Is  there  no  way  by  which  we  could  aid  the  Rus- 
sians to  keep  the  enemy  there  till  they  starve?  The 
further  the  enemy  penetrates  the  greater  his  danger, 
if  only  the  betrayed  people  are  encouraged  to  resist, 
assured  that  whatever  happens  they  will  not  be 
deserted  by  their  Allies. 

Many  people  are  shocked  and  complaining  about  the 
repudiation  of  the  Russian  debt.  But  that  is  not  the 
deed  of  the  Russian  people,  and  instead  of  damping 
our  resolve  to  help  them,  should  stimulate  it.  For  the 
one  sure  way  to  procure  the  fulfilment  of  the  national 
obligations  to  creditors  abroad  is  to  assist  and  sustain 
the  Russian  people  in  their  efforts  to  overcome  at 
one  and  the  same  time  the  invader  and  the  traitors 
within.  In  Russia,  in  Armenia,  in  the  Balkans,  in 
Poland,  and  in  Bohemia,  and  all  through  the  Cau- 
casus and  Asia  Minor,  there  is  an  infinity  of  work  to 
be  accomplished  before  we  can  set  about  forming  a 
League  of  Nations.  Are  we  to  prattle  about  that  far- 
away ideal  the  while  the  robbers  are  stripping  the 
betrayed  peoples  of  all  their  hopes  and  of  all  they 
possess?  We  trust  not.  Lord  Lansdowne  and  his 
fellow  idealists  are  not  practical  statesmen.  Let  us 
get  on  with  our  gig-antic  task,  and  leave  the  dreamer 
to  his  dreams. 


Grand  Trunk    Railway   and    Increased 
Rates. 

The  announcement  that  an  increase  in  railway  rates 
has  at  last  been  authorised  by  the  Canadian  Govern- 
ment is  welcome  news.  It  is  far  from  a  remedy  for 
the  present  unsatisfactory  condition  of  Canadian  rail- 
way finance,  but  it  points  to  the  assumption  of  a  more 
reasonable  frame  of  mind  on  the  part  of  the  Western 
farming  community.  The  increase  in  rates  was,  as 
will  be  recollected,  granted  by  the  Railway  Commission 
some  months  ago,  but  on  account  of  opposition  from 
,  Western  interests,  it  was  not  allowed  to  take  effect. 
Its  operation  was  postponed,  and  the  prospect  of  it 
coming  into  force  seemed  somewhat  doubtful. 
Evidently  the  West  is  beginning  to  realise  to  what 
a  pass  its  fetish  of  unworkably  low  transportation  rates 
has  brought  the  roads.  It  is  also  to  be  hoped  that  it 
is  becoming  conscious  of  the  fact  that  it  was  largely 
the  pursuit  of  this  particular  cult  that  was  responsible 
for  the  extravagant  construction  programme  of  the 
past  few  years.  Who  but  the  West  demanded  and  pro- 
cured the  expenditure  of  vast  sums  either  of  Govern- 
ment money  or  of  Government  credit  for  the  construc- 
tion of  three  railway  systems,  each  and  every  one  of 
which  was  desired  as  a  means  of  effecting  the  lowering 
of  railway  rates  by  competition?  This,  it  is  no  ex- 
aggeration to  say,  was  the  one  desideratum.  It  was 
the  one  great  political  reason  for  the  use  of  public 
credit  for  the  construction  of  gigantic  stretches  of  main 
line  parellel  to  existing  main  line,  and  but  five,  ten,  or 
fifteen  miles  away  from  it.  It  is  certainly  only  equit- 
able and  just  that  the  erstwhile  advocates  of  competi- 
tion and  rate-cutting  instead  of  agitating  for 
nationalisation  on  something  approaching  confiscatory 
terms,  and  resisting  by  every  means  in  their  power  any 
endfenvour  to  extricate,  the  lines  from  their  difficulties, 
should  spare  no  effort  to  bring  up  to  a  proper  state  of 
efficienrv  the^e  essential  arteries  of  the  Canadian  body 
economic.  There  is  no  doubt  that  this  15  per  cent, 
increase  in  rates  is  utterlv  inadequate,  and  far  less 
beneficial,  than  misrht  appear  at  first  sight.  Take  the 
case  of  the  Grand  Trunk,  for  instance,  whose  provi- 
sional revenue  statement  for  1917  has  recently  made 
its  aonearance.  If  15  per  cent,  of  the  gross  traffics, 
less,  sav,  10  per  rent,  allowance  for  miscellaneous 
traffic— on  which  the  increased  rate  is  apparently  not 
operative— be  added  to  the  net  receipts,  the  result  is 


a  very  substantial  accession  to  revenue,  but  it  is  when 
account  is  taken  of  the  fact  that  expenses  now  rule 
at  a  very  much  higher  level  than  the  average  for  191 7, 
and  of  the  Grand  Trunk  Pacific  obligation,  that  the 
paucity  of  the  concession  becomes  obvious.  The  ratio 
of  expenditure  to  receipts  for  the  whole  of  1917  comes 
out  at  83.94  per  cent.,  but  it  increased  as  the  year  ad- 
vanced, and  in  the  closing  months  was  much  higher 
than  the  average.  For  the  six  months  to  June  last  it 
was  only  79.50  per  cent.  In  October  it  was  83.75  P^*" 
cent.,  while  the  month  of  November  saw  an  increase  to 
90.39  per  cent.  The  results  for  the  month  of  Decem- 
ber are  not  published  separately,  but  the  ratio  for  the 
three  months  ended  December  works  out  at  97.89  per 
cent.  This  figure,  obtained  by  deduction  of  the  re- 
sults for  nine  months  of  the  year  from  the  final  figures, 
which  probably  includes  adjustments  covering  the 
whole  year,  may  be  excessive,  but  it  is  more  likely 
than  not  that  the  December  figure  represented  an  ad- 
vance on  that  of  the  previous  month.  In  February  last 
a  further  advance  in  wages  was  conceded  to  the  men, 
and  as  this  will  probably  be  followed  by  further  de- 
mands, it  does  not  seem  extravagant  to  assume,  for 
the  purpose  of  estimating  expenditure  for  the  current 
year,  a  ratio  to  receipts  of  95  per  cent.  On  the 
assumption  that  the  trallics  for  the  current  year  come 
out  the  same  as  in  1917,  and  that  there  is  no  deficit 
to  make  good  in  respect  of  the  Western  Detroit  and 
Toledo  lines,  the  surplus  for  1918  would  only  just 
suffice  to  pay  the  4  per  cent,  dividend  on  the  guaran- 
teed, as  will  be  seen  from  the  following  statement  :— 

Gross  receipts  for  1917 10,725,500 

Deduct,  say,  10  per  cent,  for  miscellaneous  trafiSc. . . .       1,072,550 

Total  freight  and  passenger  traffic 9i652,95o 

IS  per  cent,  increase  on  this  would  amount  to    1,447,942 

And  total  gross  receipts  would  amount  to    12,173,442 

Working  expenses  (95  per  cent,  of  1917  gross  receipts)  10.189,225 

Nett  receipts 1,984,217 

Nett    revenue  charges,   less  credits  and   balance    of 

income  from  rentals  and  hire  of  equipment 1,428,700 

555.517 
4  per  cent,  on  guaranteed 496,820 

58.697 
But  this  is  before  taking  into  account  the  Grand  Trunk 
Pacific  guarantees.  That  the  interest  guaranteed  by 
the  parent  company  is  at  present  being  paid  out  of  the 
loan  made  by  the  Dominion  Government  is  true,  but 
the  obligation  remains  an  obligation,  and  the  granting 
of  financial  assistance  is  obviously  c.Iy  a  temporary 
measure.  Very  little  information  is  obtainable  con- 
cerning the  Pacific  on  this  side,  but  according  to  the 
papers  tabled  last  year  in  the  Canadian  Parliament,  the 
surplus  from  operation  for  the  year  ended  June  next  is 
estimated  to  amount  to  ;^23 1,000.  But  this  estimate 
was  framed  when  costs  were  much  lower,  and  the 
actual  results  may  be  less  favourable.  Interest  due 
amounts  to  ;^i,6i4,323,  and  the  amount  of  the  Grand 
Trunk's  guarantee  to  something  in  excess  of  :^8oo,ooo. 
The  traffics  only  of  the  Prairie  Division  are  published, 
and  one  is  consequently  unable  to  make  anything  like 
an  accurate  estimate,  but  it  is  pretty  evident  that  much 
more  than  an  increase  of  15  per  cent,  would  be  re- 
quired to  enable  the  Pacific  to  meet  its  interest 
charges. 


South  African  Dried  Fruit  Industry. — A  trial  consignment  of 
five  tons  of  prunes  was  recently  sent  to  England  from  Welling- 
ton, Cape  Province.  This  resulted  in  an  order  for  50  tons 
(4,000  boxes),  in  respect  of  -which  a  most  satisfactory  report 
has  been  received.  Since  then  three  other  shipments  of  dried 
fruit  have  been  made— in  all  about  6,000  boxes— and  two  at 
least  of  these  shipments  have  been  sold  advantageously. 


NOTICE. 


THE  EASTERN  TELEGRAPH  COMPANY.  LIMITED, 

ANNOUNCE  that  Captain   HENRY  W.  GRANT.  C.B.,R.N., 
has  been  appointed  Joint  Managing  Director. 


a96 


Zbc  Jnvestors'  IRevtew. 


March  23,  1918. 


Our  Foreign  Trade  in  February. 

Not  very  much  satisfaction  ran  be  extracted  from  the  Board 
of  Trade  returns  for  last  month,  especially  vihen  it  is  remem- 
bered that  the  figures  now  include  an  unknown  quantity  of 
Government  goods  which  wore  excluded  previous  to  last  July. 
Here  is  the  summary  (or  February  and  for  the  two  months 
compared  with  the  corresponding  periods  of  the  two  previous 
years  : — 

Pebraary,      Compared      Compared 
1918.  with  1917.       with  1916. 


Imports  . . . 
Exports  . . . 
Ra-exports. 


99.053.831 

39.099.48' 


£ 

+  28,106,145 

+   1.811,935 
—  6,251,612 


+  31,718,252 
+  2.763.699 
—  5.789.654 


Two  Months. 


Imports .,..., 

Exports ;,■;. 

Re-exports 

Excess  of  imports 


198,105,545 

80,765,416 

5.930,Bo2 


111.409,32; 


+  36,605,621 

—  3.382,612 

—  11,492,267 
-t-  51,480,501 


+  55.834.225 
+  7,672.467 
—  11,429.166 


-f-  59.590,924 


Imports  of  grain  and  flour  show  a  reduction  of  ;£'3,428,ooo, 
or  26  per  cent.,  and  in  view  of  higher  prices  the  decline  in 
quantity  must  be  still  more  serious.  Meat,  however,  increased 
jf2,927,ooo,  or  41  per  cent.,  but  to  what  extent  this  is  due 
merely  to  higher  prices  we  are  not  permitted  to  know.  Other 
non-dutiable  articles  of  food  and  drink  are  up  ;^i, 320,000,  or 
30  per  cent.,  and  dutiable  articles  (principally  tea  and  sugar) 
;f  3,438,000,  or  80  per  cent.,  while  there  was  also  an 
iftcrease  of  ;f233,Qoo,  or  75  per  cent.,  in  tobacco.  Of 
raw  materials  we  received  /i5,o2o  more,  the  bulk  of  the  in- 
crease being  accounted  for  by  cotton,  which  rose  ^^12,31 1,000, 
or  142  per  cent.,  in  value,  while  the  increase  in  quantity  was 
only  38}  per  cent.  Wool  fell  over  50  per  cent,  in  amount  and 
43  per  cent,  in  value,  but  there  was  an  increase  of  ^f  1,143,000, 
or  100  per  cent.,  in  wood  and  timber,  while  the  quantity  was 
only  about  10  per  cent.  larger.     Oil  seeds,  nuts,  &c.,  increased 

f  1, 875,000,  or  36  per  cent.,  and  paper-making  materials 
746,000,  or  330- per  cent.,  so  that  the  position  in  this  respect 
ought  to  be  getting  more  comfortable,  although  we  see  no  signs 
<jf  it  yet.  Articles  wholly  or  mainly  manufactured  have  ad- 
vanced ;if8, 790,000,  or  over  80  per  cent.,  but  this  is  mainly  due 
to  an  increase  of  ;if  5,580,000  in  unenumerated  articles,  which 
probably  represent  Government  purchases.  Metals  other  than 
iron  and  steel  increased  ^'950,000,  machinery  ;^597,ooo,  and 
chemicals,  dyes,  &c.,  ^488,000,  but  otherwise  the  changes  are 
comparatively  small. 

Exports  of  food  and  drink  fell  ;f  775,000,  or  almost  50  per 
cent.,  and  coal  dropped  9  per  cent,  in  quantity,  but  only  i  per 
cent,  in  value.  Shipments  of  other  raw  materials  were  on  a 
tricing  scale.  Among  manufactured  articles  almost  the  only 
pleasing  item  is  cotton,  which  shows  a  total  gain  of  ;f  4,577,000, 
or  50  per  cent.  Piece  goods  increased  67J  per  cent,  in  value, 
bilk  only  10  per  cent,  in  quantity.  Nearly  all  the  other  head- 
ings show  decreases,  iron  and  steel  being  down  ^^890,000,  or 
25- per  cent.,  machinery  ;£483,ooo,  or  27  per  cent.,  and  apparel 
;^^55,boo,  or  45  per  cent.  There  is  nothing  of  special  interest 
in  •the  figures  for  the  two  months,  but  the  heavy  drop  in  re- 
ext)orts'may  be  noted.  It  already  amounts  to  66  per  cent.,  and 
■*6  are  afraid  if  will  be  difficult  to  recapture  a  great  deal  of  this 
tr^e  when  conditions  again  become  normal. 

As  regards,  stocks  in  bond,  it  is  interesting  to  note  that  the 
amount  qf  tea  available  is  now  70,293,000  lbs.,  as  compared 
wiih  37,200,000  lbs.  at  the  end  of  December,  so  the  situation  has 
greatly,  increased  in  this  respect.  A  year  age  the  stocks  were 
94,441,000,  but  tea  queues  had  not  been  invented  then.  Sup- 
plies'of  coffee,  cocoa,  wines  and  spirits  are  ample,  and  do  not 
justify  the  profiteering  that  is  allowed  to  go  on,  but  the  tobacco 
position  is  becoming  dangerous,  as  stocks  have  fallen  to 
120,452,000  lbs.,  against  251,870,000  lbs.  last  year  and 
268,590,000  lbs.  in  iqi6.  A  tobacco  famine  will  not  help  us  to 
bear  all  the  other  trials  and  tribulations  of  these  times. 


I      Italian  Trade  and  Exchange. 

{talian  commercial  intercourse  with  the  United  States  has 
betn  very  active,  and  it  is  to  be  hoped  that  it  may  further  in- 
cr4ase  after  the  war  through  the  intensification  of  our  agri- 
cultural production.  Between  July  i,  igi6,  and  June  30,  1917, 
th^  United  States  have  imported  from  Italy  goods  to  the 
value  of  $46,374,308,  or  about  11  millions  less  than  in  iqi6, 
wKile  exporting  to  Italy  $360,529,625,  or  about  gr  million 
dollars  more  than  in  1916.  Italian,  exports  show  some  increase 
against  the  preceding  years  in  artistic  goods,  nuts,  silk  and 
wines.  We  have  imported  from  American  markets  larger  quan- 
tities of  leather,  meat,  bacon,  ftc. 

buring  the  two  earlier  quarters  of  1917  Italian  imports  have 
come  up  to  little  more  than  4  milliards,  i.e.,  half  a  milliard 
leas  than  in  the  corresponding  period,  1916,  while  exports  have 
been  for  about  i  milttard  and  300*  millions,  consequently  300 
m^lions  less  than  in  1916.  To  this  difference  between  exports 
ar(d  imports  have  contribu\fd  first  the  United  States  for  an 
amount  of  1.553  millions.  Great  Britain  with  650  millions, 
Argentine  i0  milHoDt,  Iildiil'  113  ttrillions,  Spain  23  millions. 
Irt.  regard  to  Switzerland,  France,  and  Egypt,  exports  have 
surpassed  imports.  M«My  ar«  riA;tined  to  ascribe  to  this  excess 
of;  imports  over  exports  the  position  of  our  exchange  rate, 
but    the    phenomenon    is    of    too   complex    a    character    to    be 


accounted  for  by  such  explanation.  One  of  its  causes  is  doubtlessly 
to  be  found  in  the  issue  of  paper  money.  It  may  be  interesting 
to  see  what  our  rate  of  exchange  has  been  during  the  last 
three  years.  In  September,  1914,  our  exchange  on  Paris  was 
104.40;  it  went  up  to  112.75  in  December,  1915,  to  117.66  in 
October,  igi6,  reaching  133-73  '°  September,  1917,  and  135.48 
on  October  25  last.  The  Italian  rate  of  exchange  on  I.ondon, 
which  was  at  25.87  in  December,  1914,  went  up  to  31.28  in  De- 
cember, 1915,  reaching  32.74  in  December,  1916,  and  37.30  on 
October  25  last. 

Concerning  paper  circulation  in  Italy,  we  see  from  the  Ex- 
chequer accounts  that  it  amounted  to  498  millions  on  June  30, 
igi3,  and  to  499  millions  one  year  later.  On  June  30,  1914,  first 
year  of  war,  it  reached  765  millions,  growing  to  1,134  millions 
in  1916  and  to  i  milliard  and  459  millions  on  June  30,  1917. 

As  to  the  total  circulation  of  the  issuing  institutes,  which  in 
July,  1914,  was  1,730  millions  for  the  Dank  of  Italy,  42** 
millions  for  the  Bank  of  Naples  and  106  millions  for  the  Bank 
of  Sicily,  it  was  last  August  4,692  millions  for  the  Bank 
of  Italy,  1,147  for  the  Bank  of  Naples,  and  242  for  the  Bank 
of  Sicily. 

Deposits  at  the  banks  have  increased,  and  if  we  add  to  them 
those  at  the  saving  and  postal  banks  we  have  an  average  in- 
crease from  July,  1914,  to  June,  1917,  of  41  per  cent. 

The  tariff  problem  for  after  the  war  was  the  subject  of  a 
discussion  in  January  lo  at  the  meeting  held  by  the  Italian 
delegates  of  the  Interparliamentary  Committee  for  Commerce. 
The  issue  has  been  hotly  debated  between  the  supporters  of  agri- 
cultural and  those  of  industrial  interests.  The  latter,  whose 
spokesman  was  Senator  Esterle,  proposed  a  system  of  autono- 
mous maximum  and  minimum  tariff.  The  others,  among 
whom  were  many  denuties  for  the  South,  strongly  opposed  it 
as  a  plan  that  would  be  pernicious  to  agricultural  needs  and 
development.  It  was  decided  that  the  question  shall  not  be 
brought  under  discusion  at  the  conference  of  the  International 
Committee  which  will  take  place  in  London  on  May  6.  being  a 
matter  for  internal  rather  than  general,  concern.— From  our 
Italian  Correspondent.  

By-the-Way  War  Notes. 

Most  encouraging  was  the  information  Mr.  Macpherson  the 
Under-Secreury  for  War,  gave  to  the  House  last  Tuesday. 
It  encouraged  because  proving  that  we  have  at  last  woke  up 
to  the  immense  power  of  aircraft  as  engines  of  destruction  to 
be  used  with  deadly  effect  on  the  enemy's  war  material,  fac- 
tories, and  such  like.  "Since  October,"  said  Mr.  Macpher- 
son "we  have  made  38  effective  raids  into  Germany,  and 
have  dropped  48  tons  of  e.xplosives."  That  reads  smoothly 
enough  but  the  deeds  were  not  easily  done,  for  Lorraine  is 
a  difficult  country  to  fly  in  or  to  see  things  in  on  the  ground 
from  the  air ;  but  the  work  was  done,  difficulties  or  no  diffi- 
culties, and  as  we  go  on  we  increase  in  power,  in  the  eflici- 
ency  of  our  machines,  and  in  the  dominant  skill  of  our  air- 
men. Moreover,  we  always  have  a  definite  object  in  our 
attacks,  and  they  are  most  times  carried  out  with  success  in 
broad  daylight.  There  is  no  vague  sneaking  across  the 
country  in  the  night,  and  no  dropping  of  bombs  promiscuous  y 
without  regard  to  any  chosen  objective,  in  fulfilment  merely 
of  the  coward's  hope  that  some  property  will  be  damaged, 
seme  innocent  people  slain,  and  the  rest  frightened  into  offer- 
ing peace.  No  greater  contrast  could  be  imagined  than  that 
between  our  method  of  conceiving  and  executing  air  raids 
and  the  enemy's.  Verily  Germany  is  in  war,  as  in  other 
barbarities,  "the  greatest  anarchist  in  Europe,"  and  the 
greatest  beast.  By  our  raids  we  have  already  destroyed  much 
German  war  material,  damaged  many  factories,  aerodromes, 
railway  stations,  barracks,  and  possibly  bridges,  but  we  have 
not  laid  ourselves  out  to  slay  women  and  children.  And  we 
are  only  beginning.  When  our  full  energy  is  developed,  and 
when  America  is  able  also  to  put  forth  her  matured  strength, 
there  will  soon  be  an  end  of  Prussian  brute  force  as  world 
swayer. 

At  frequent  intervals  discussion  springs  up  in  the  newspapers 
about  that  much-advertised  coming,  coming,  German  offensive, 
and  many  of  our  guides  seem  to  favour  the  view  that  there 
will  be  no  formidable  offensive  in  the  West,  but  that  the  armies 
of  the  Central  Empires — now  bankrupt  in  means  as  well  as  in 
all  that  renders  Governments  worthy  of  respect— will  throw 
the  weight  of  their  forces  on  some  unexpected  point  elsewhere 
in  order  to  take  the  Allies  by  surprise,  and  snatch  a  victory 
of  sorts.  Supposing  they  did,  what  could  that  victory  do  to 
relieve  the  hunger  pressure  from  which  they  more  and  more 
suffer?  Would  the  driving  in  on  the  Italian  front,  and  the 
overrunning  of  Venetia  and  Lombardy,  which  some  of  our 
cravens  expect,  help  the  two  empires  to  a  better  peace?  or 
,  would  that  much-talkcd-of  assault  upon  our  front  in  Mace- 
donia bring  the  starving  victims  of  the  two  Kaisers  re- 
plenished larders,  contentment,  and  abundant  work?  No,  for 
the  purpose  of  bringing  peace,  war  triumphs  in  neither  of 
these  directions  would  be  of  the  smalle.st  use  to  the  derelict 
empires  now   battling   in   despair   for   their   existence. 

So  long  as  we  hold  the  Germans  by  the  throat  in  the  We'rt 
their  "triumphs"  elsewhere,  ay,  even  in  K'ussia.  can  do 
nothing  to  save  them.  Therefore,  we  deem  it  idle  to  di<icuss 
the  question  whether  a  great  assault  in  the  Wesf 
is  being  prepared  for,  or  whether  the  Prussian  "high  com; 
mand  "  means  to  burrow  and  fortify  in  and  behind  the  present 
defensive  lines  in  order  to  hold  us  fast  until  ve  give  up  the 
struft^e  from  exhatistion.  Alt  that  talk  is  idle.  The  Prnssi-ahs 
mutt  assault ;  they   are  preparing   for   the   great   avalanche  of 


March  23,  1918. 


^bc  Jnvestors'  IReview. 


w 


biped  victims  to  be  flung  against  our  lines  every  day  that 
passes.  We  see  part  of  the  preparation  in  the  constant  attacks 
made  now  at  one  point,  now  at  another,  and  occasionally  at 
many  points  all  along  our  front  from  Switzerland  to  the  English 
Channel.  These  attacks  are  no  doubt  intended  to  discover  the 
veak  spot  through  which  the  furious  Prussians  might  rush 
their  forces  as  droves  of  cattle  are  rushed  into  the  slaughter 
pens,  but  they  are  also  meant  to  harden  up  the  troops  and  to 
accustom  them  to  stand  fire,  so  as  if  possible  to  evolve  from 
accustom  them  a  sufficient  number  of  "  shock  "  battalions  to  be 
used  as  spear-heads  in  the  coming  drive. 

Have  they  any  success  in  these  efforts  at  discovering  our 
positions,  in  this  annealing  to  hardness  in  butchery  process? 
None  that  is  visible  to  us,  and  assuredly  so  far  as  strengthen- 
ing the  courage  and  morale  of  their  troops  goes,  the  effect  of  the 
persistent  raiding  must  be  the  very  reverse  of  what  was  hoped 
for.  To  be  beaten  every  time,  or,  when  momentarily  suc- 
cessful, to  be  taken  by  the  scruff  of  the  neck  and  flung  out 
of  trenches  gained  in  the  first  dash  forward,  cannot  serve  to 
heighten  the  courage  and  self-confidence  of  any  army,  let 
alone  such  armies  as  the  enemy  can  now  muster.  Germany 
appears  to  us  to  be  indeed  now  playing  our  game,  and  wearing 
down  her  own  strength.  In  so  doing  she  is  rendering  the 
results  of  the  final  assault  so  elaborately  prepared  for  and 
advertised  for,  more  surely  a  victory  for  us  and  our  Allies  than 
a  defeat.  It  should  be  the  final  victory  in  some  senses,  though 
not  the  end  of  the  war.  Famine  alone  may  bring  us  that 
now.  ■'  ° 

It  IS  a  pity  that  there  is  so  much  disposition  on  the  part 
of  some  of  our  newspapers,  and  markedly  on  the  part  of  the 
syndicated  or  family. group  type  of  newspapers,  to  seize  and 
press  forward  on  every  occasion  the  untoward  and  apparently 
unpropitious  amongst  events  that  happen.  Above  all  does  i't 
seem  short-sighted  to  a  high  degree  of  folly  to  keep  harping 
upon  the  great  deeds  the  Germans  and  Turks  are  performing 
all  round  the  Black  Sea,  or  in  the  Baltic  region,  or  in  Central 
and  Western  Russia,  or  in  Rumania.  The  populations  sub- 
jected  to  this  rather  belated  and  bedragged  display  of  savagery 
and  all-conquering  heroics  are  worthy  of,  and  deserve,  pro- 
found commiseration,  but  their  time  of  agony  cannot  now  be  so 
long,  because  nothing  human  can  well  seem  more  certain  than 
that  the  end  of  the  war  is  drawing  near.  Neither  the  men  nor 
the  means  are  possessed  by  the  enemy  to  enable  them  to  prolong 
the  conflict  in  the  West  or  anywhere  very  much  longer 
t^Pl  J^  '"""'^  *"*^  '"""^^  eating  into  the  vitals  of  the  victims 
ot  Habsburg  and  Hohenzollern  oppressions.  Probably  enough 
this  hunger  is  now  goading  the  military  leaders  in  Prussia  to 
assume  risks  and  take  action  sooner  than  they  would  To  play 
the  safe  game  and  hold  the  Allies  until  they  are  exhausted 
IS  no  longer  within  their  power,  if  it  ever  was.  The  Kaisers 
and  their  masters  are  much  in  the  position  of  the  Confederate 
Mates  and  their  leaders  and  armies  in  the  last  year  of  the 
American  Civil  W'ar.  And  we  must  hold  them  fast  until  they 
surrender.  ■' 

To  help  us  to  do  that  our  hold  at  sea  in  nowise  slackens, 
iry  as  the  enemy  may,  his  boasted  power  to  starve  us  into 
submission  is  manifestly  derided  by  events,  and  his  persistence 
in  the  attempt  can  only  increase  the  ostracism  from  which  he 
must  suffer  when  we  give  him  peace.  There  may  be  no  room 
tor  German  ships  on  the  ocean  when  peace  returns.  He  may 
coerce  the  Dutch  into  refusing  their  ships  to  the  Allies  because 
he  IS  on  their  frontier,  but  neither  he  nor  the  Dutch  can 
prevent  us  froin  seizing  these  ships  and  utilising  them  for 
the  public  good,  aye,  even  for  the  good  of  HoUand,  itself 
beginning  to  be  hungry.  At  no  point  is  there  grave  danger,  so 
tar  as  we  can  see,  in  the  war  conditions— always  provided  we 
are  not  betrayed  into  some  rash  and  foolish  action,  and  thereby 
give  ourselves  into  the  enemy's  hands.  We  have  no  necessity 
now  to  repeat  the  great  assaults  of  the  last  two  years  and 
ought  not  to  waste  a  single  man  whose  loss  can  be  prevented. 
1  he  Germans  themselves  proclaim  the  nearness  of  their  dis- 
comfiture by  the  insanity  of  their  behaviour  and  the  increasing 
abandon  and  insolence  of  their  swagger.  As  the  air  warfare 
develops,  moreover,  the  necessity  for  trying  to  bore  our  way 
through  countries  stuffed  with  concrete  "pill-boxes,"  and 
fortified  after  the  most  scientific  designs  known  to  modern 
warfare,  surely  grows  less  for  the  Allies,  and  as  our  power  of 
distant  flights  increases,  our  ability  to  paralyse  the  enemy  must 
do  so  likewise.  ^ 

Most  of  our  newspapers  do  not  trouble  themselves  to  set  out 
fully  the  facts  of  shipping  losses  for  the  past  week.  Accord- 
ingly, read  superficiaUy,  they  appear  to  show  that  the  German 
submarine  has  had  a  uniformity  of  success  during  the  past 
month  altogether  remarkable ;  that  is  to  say,  in  each  week  of 
the  four  ended  last  Saturday  i8  ships  have  been  sunlt  Varia- 
tions in  the  size  of  the  craft  happened,  but  that  is  all.  So 
for  the  past  week  we  have  ii  ships  of  over  i,6oo  tons  and  six 
under  that  capacity  returned  as  sunk,  compared  with  15  large 
and  three  small  in  the  previous  week,  12  large  and  six  small 
in  the  week  ended  Marci  9,  and  14  large  and  four  small  in 
the  last  week  of  February.  But  in  the  past  week  our  position 
was  really  considerably  more  favourable  than  this  recital  shows, 
H  because  of  the   11   large  ships  returned  as  sunk,  one  should   be 

■  "eai*ed  to  the  week  ended  July  8,  iqiy,  one  to  the  week  ended 
H         September  23,  igiy,  and  another  to  the  week  ended  January  19 

B  u  *''  *°  *****  °"'^  ®'^'"  '*''^*'  vessels  were  actually  sent  to  the 
H  bottom  last  week  so  far  as  is  known.  From  the  ii  unsuccess- 
ful '"''y  attacked,  moreover,  one  should  be  deducted  as  having 
^^K  been  attacked  in  the  week  ended  March  q.     The  v/eek  was  thus 


The  total  arrivals  and  clearances  of  the  week  was  307  more 
than  in  the  preceding  week— viz.,  2,098  in  and  2,317  out.  Both 
the  French  and  Italian  returns  were  likewise  encouraging.  The 
French  lost  two  vessels  of  over  and  two  of  under  1,600  tons,  ■ 
and  the  Italians  only  one  ship  of  over  1,500  tons.  We  have 
but  to  work  on  and  hope. 

It  is  the  drawback  of  a  weekly  paper  thai  its  oomtents  cannot 
all  be  produced  in  one  day.  An  article  written  on  Thursday 
morning,  as  the  above  was,  may  be  made  stale  by  the  news  ol 
Friday.  It  is  so  in  this  instance  so  far  as  the  German  offen- 
sive is  in  question.  That  has  begun,  and  the  battle  rages  as  we 
go  to  press.  Have  we  fear  as  to  the  result?  None;  but  the 
murder  will  be  "  grim  and  great." 


Insurance    News. 


A  falling-off  in  the  volume  of  new  business  is 
reported  by  the  Scottish  Amicable  Life  Assurance 
Society  for  191 7,  the  amount  being  ;^'662,655,  a  de- 
crease of  ;£^87,72i,  while  the  nett  amount  retained  was 
;£'6i3,255,  a  reduction  of  ;£.i^63,64i.  Nett  new  pre- 
miums came  to  ;^40,46o,  or  ;^"2,957  less  than  in  1916. 
Claims  were  ;^i8,40O  lighter  at  ;£^372,o65,  the  amount 
including  ;^54,098  payable  under  131  policies  on  the- 
lives  of  106  members  who  died  from  causes  directly 
due  to  the  war.  The  direct  war  claims  were  practi-- 
cally  the  same  in  amount  as  for  the  previous  year. 
By  the  addition  of  ;^i82,824  (against  £i<^,2T,7),  the 
funds  were  increased  to  ^'6,273,551.  Interest  revenue 
at  ;^'302,864  showed  an  increase  of  ;^i6,323,  and  th« 
average  rate  of  interest  on  the  funds  was  3s.  4d.  per 
cent,  higher  at  £^  os.  5d.  per  cent.  Expenses  of  martage- 
ment  and  commission  represented  11.84  P®''  c«nt-  of 
the  premium  income,  or  lower  than  the  society's 
normal  average,  as  contrasted  with  12.64  P^r  cent, 
for  1916,  when  there  were  special  expenses  connected 
with  the  quinquennial  valuation. 

Although  the  National  Mutual  Life  Association  of 
Australasia  in  191 7  issued  only  10,930  policies,  against 
11,005  'f  i9'6,  the  amount  assured  was  ;^269,3i7 
larger  at  ;^3,S05,i62,  and  the  annual  premiums  were  . 


New  Zealand. 


A  'Wealthy  Country,  Splentfid  Climate,  Fertile 
Soil,  Plenty  of  Valer. 

An  Ideal  Country  for  the  fanner,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  population,  has  an 
annual  export  of  raw  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IltON,  TIMBER, 
GUM.  COLD  AND  SILVER.  Total  yield  of  Minerals, 
over  One  Hundred  and  Twenty  Million  Poinds. 

Over  Eighteen  Million  Potinds  have  been  advanced 
byGovemmenttoFarmersand'Wotkersfor  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 

The  Railways,  3,000  miles.  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  Stat^ 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  'World. 
To  those  desirous  of  making  a  home  in  a  new 
country.  New  Zealand  offers  solid  advantages. 
Excellent  Steamship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Shipping  Company, 
Limited,  and  the  Federal  ^a^  Sliire  Lines. 


Full  information  is  supplied  fiee  by 

THE  HIGH  COMMISSIONER  FOB  NEW  ZEALAND. 

«3-4J6,  STRAND,  W.C  2. 


298 


Zbc  Jnvestove'  IReview. 


March  23,  1918. 


£140/172,  against  £i33A^3-  Including  interest,  the 
total  income  was  ^^1,770,196,  an  increase  of  ;^io8,548. 
A  nett  rate  of  interest  of  £4  i8s.  id.  per  cent,  was 
earned  on  the  funds.  By  the  addition  of  ;^74i,428 
(against  ;^729,842),  the  funds  were  raised  to 
^' 10,869,000.  Death  claims  were  heavier  by  ;^50,288 
at  ;^4S5.932- 

A  surplus  of  ;^8fi,o88  is  disclosed  by  the  quinquen- 
nial valuation  of  the  Provident  Mutual  Life  Assur- 
ance Associatioft,  which  was  made  on  a  3  per  cent, 
basis ;  the  surplus  realised  from  the  previous  five  years 
was  ^^328,776,  the  poor  results  now  shown  being  due 
to  the  depreciation  of  Stock  Exchange  investments, 
increased  taxation  of  interest  income,  and  claims  on 
the  lives  of  members  killed  on  active  service.  No  general 
distribution  of  profits  is  recommended,  but  it  is  pro- 
posed to  pay  an  interim  bonus  of  los.  per  cent,  per 
annum  in  respect  of  each  full  year's  premium  paid 
since  December  31,  191 2,  on  all  participating  policies 
which  mature  of  produce  claims  by  death  during  the 
current  year.  The  rate  of  bonus  to  be  declared  on 
policies  producing  claims  after  that  date  is  to  be  re- 
considered at  the  end  of  the  year,  with  a  view  to  such 
modification  as  the  circumstances  then  prevailing  make 
desirable.  To  provide  for  the  depreciation  of  Stock 
Exchange  securities,  which  form  the  bulk  of  the  Asso- 
ciation's assets,  it  was  necessary  to  increase  the  in- 
vestment reserve  by  ;^  10,000  to  ;^  160,000,  and  in  addi- 
tion to  write  down  the  book  values  by  ;^io7,462. 

A  prominent  place  is  taken  among  the  large  insur- 
ance offices  by  the  Excess  Insurance  Company,  and 
the  figures  for  1917  show  a  very  large  expansion  in  the 
business,  premiums  having  risen  from  ;^  1,740,000  to 
;^2, 451,000  for  the  1917  underwriting  account,  the 
expansion  being  due  to  a  large  extent  to  the  increase 
in  premium  for  each  given  risk.  The  premium 
income  has  more  than  quadrupled  in  three  years,  the 
total  having  been  ;£'573,247  in  the  year  of  the  out- 
break of  war.  The  dividend  is  raised  from  20  to  25 
per  cent.,  but  this  absorbs  only  ;^i 2,500,  general 
reserve  now  stands  at  ;^4oo,ooo,  and  the  investment 
reserve  at  ;^  12 1,000. 

Exclusive  of  the  marine  account,  the  premium  income 
<rf  the  Provident  Accident  and  Guarantee  Co.,  long 
Icnown  as  the  Provident  Clerks'  and  General  Guarantee 
and  Accident  Co.,  for  the  past  year  amounted  to 
^^154,727,  an  increase  of  ;^4,87S.  At  the  end. of  the 
year  the  marine  fund  stood  at  ;i^247,,255.  The  under- 
writing account  rfor  1915  has  now  been  closed,  and 
$hows  a  satisfactory  profit  which  is  left  in  the  fund. 
During  the  year  the  company  became  associated  with 
the  Northern  Assurance  Co.,  and  in  consequence  of  the 
existing  interests  of  that  company  in  marine  insurance 
'it  has  been  deemed  expedient  for  the  Provident  Accident 
to  cease  transacting  this  class  of  business,  which  has 
accordingly  been  discontinued.  Stock  Exchange  securi- 
ties were  valued  on  December  31  at  market  prices,  and 
£12,000  has  been  added  to  the  investment  reserve  from 
the  profits,  which  amounted  to  ;^33,559.  The  dividend 
|or  the  year  is  maintained  at  22 J  per  cent.,  and  the 
balance  forward  increa.sed  from  £9,717  to  ;^i5.933- 


Egyptian  Cotton  Crop. 


J  In  Lancashire  trade  circles  this  week  considerable  interest 
hsii  been  taken  in,  the  decision  of  the  British  and  Egyptian 
Governments  to  purchase  the  Egyptian  cotton  crop  for  next 
season.  A  Commission  has  been  appointed  to  deal  with  the 
(natter,  and  later  an  Advisory  Board  will  assist  the  members 
of  the  Commission.  The  prices  at  which  the  raw  cotton  will 
be  bought  will  be  based  On  $42  per  cantar  for  fully  good  fair 
Sakellaridis,  and  the  material  wiU  be  sold  on  the  basis  of  $48 
^er  cantar,  f.o.b.  at  Alexandria,,  This  action  has  led  to  some 
poniusion  in  trade  circles,  but  prices  in  Liverpool  have  ad- 
vanced considerably  during  the  week,  and  Lancashire  spinners 
have  purchased  very  freely  on  the  spot.  It  is  recognised  that 
Ordinary  dealings  will  be  restricted,  but  the  action  Of,  the 
Oovernment  is ,  generatly  approved.  It  may  be  said  that  in 
^ch  year  about  half  the  Egyptian,  cotton  grown  is  consumed 
fn  I^ncashire,  and  the  fine  spinning  section  is  #'  iMst,  im- 
portant branch  of  the  industry^  ,     ^1„  ,  ,.  ,,', 


The  Truth  about  Aeroplanes 


Facts  for  the  British  Public. 


Four  years  of  war  have  shown  the  British  people 
to  be  at  their  best  when  they  are  told  the  truth  and 
what  is  demanded  of  them. 

There  is  no  service  the  people  will  not  willingly 
render  and  no  sacrifice  they  will  not  make  to  achieve  a 
speedy  and  a  victorious  peace. 

Millions  of  men  have  rushed  to  the  Colours,  and 
munitions  have  been  forthcoming  in  millions  of  tons 
to  defeat  the  Germanic  forces. 

The  daily  reports  from  the  Front  make  it  clear  that 
corresponding  effort  must  be  made  in  the  air  to  finally 
overthrow  the  common  enemy. 

The  much-vaunted  German  Gotha  has  found  its 
master  in  the  British-built  machine.  For  speed,  lift, 
climb,  equipment  and  dependability  the  British-built 
aeroplane  has  by  innumerable  and  most  severe  tests 
proved  its  superiority  over  the  German  product. 

Britannia  can  and  will  rule  the  air  as  she 
rules  the  waves. 

It  now  resolves  itself  into  a  question  of  numbers — of 
ensuring  such  an  overwhelming  preponderance  of 
British-built  aeroplanes  as  will  make  life  intolerable 
behind  the  German  lines;  and  also  stop  the  raids  uf>on 
our  civilian  population. 

This  resolves  itself  into  providing  ample  funds  to 
build  aeroplanes  without  delay. 

Whitehead  Aircraft,  Limited,  having  received 
Treasury  sanction  to  issue  up  to  ;^i, 000,000  capital, 
will  make  a  supreme  effort  to  ensure  the  overwhelming 
preponderance  of  British  aeroplanes  by  immediately 
increasing  the  output. 

The  additional  capital  will  be  offered  to  the  British 
public,  and  every  investor  is  to  be  given  a  first  opportu- 
nity to  acquire  Ordinary  Shares  in  a  soundly-established 
British  aircraft  company,  that  has  during  the  past  two 
years  turned  out  a  large  number  of  machines  for  the 
Front. 

These  additional  funds  will  greatly  facilitate  and 
increase  the  output  of  machines  during  the  next  few 
months. 

Aircraft  Shares  will  become  Valuable  Invest- 
ments in  years  to  come.  The  aeroplane  in  peace  and 
war  will  play  a  wonderful  part  in  the  life  of  nations. 
Moreover,  an  important  fact  is  that  an  aircraft  factory 
is  not  restricted  to  the  building  of  aeroplanes.  Its  equip- 
ment enables  it  to  turn  out  almost  anything  connected 
with  the  wood  or  iron  industry,  notably  motor  'buses 
and  railway  rolling-stock,  for  which  there  will  be  such  an 
enormous  derftand  when  peace  returns.  This  gives  the 
Shares  of  an  aircraft  company  a  stability  quite  unique. 

The  works  and  factories  of  the  Whitehead  Aircraft 
Company,  Ltd.,  are  conveniently  situated,  admirably 
organised,  equipped  with  the  most  modern  machinery, 
a,nd  permit  of  further  extensions. 

The  British  investor  is  to  be  given  his  opportunity 
to  co-operate.  This  is  not  an  invitation  to  subscribe 
for  shares,  but  those  readers  who  would  desire  a  copy  of 
the  Prospectus  should  at  once  send  a  written  request  to 
I.  A*  Whitehead,  Esq.,  Box  No.  7,  c/o  "Investor's 
Review." 


March  23,  1918. 


Zbc  Jnvestovs'  IRevtcw. 


299 


The  Week  in  Mines. 

This  week  has  been  noteworthy  for  the  activity  and  buoyancy 
displayed  by  the  Nigerian  Tin  market.  Prices  show  a  general 
advance,  which  is  of  appreciable  extent  in  some  cases.  But  the 
public  would  be  wise  not  to  participate  in  this  movement, 
except  perhaps  as  regards  the  better-class  properties,  for  the 
movement  is  being  engineered  by  professionals,  based  on  the 
profits  which  the  mines  can  earn  with  the  price  of  the  metal 
standing  at  its  present  high  level.  In  other  departments  busi- 
ness has  been  quiet,  but  the  tone  fairly  fijrm. 
South  and  West  Africans. 

A  sharp  advance  in  Modder  Leases  of  7-32  to  3f|  has  been 
an  outstanding  feature  in  the  South  African  market.  This 
was  due  to  the  adoption  by  the  Union  'Parliament  of  the 
scheme  between  the  Government  and  the  company  revising  the 
terms  of  the  lease.  Springs  Mines  have  been  bought  on  the 
bringing  into  commission  of  additional  stamps,  and  show 
a  similar  advance  at  3  29-33.  New  Modderfonteins  have  risen 
}^  to  22%,  and  City  Deeps  at  3,  Crowns  at  i^,  Brakpans  at 
St"!,  and  Rand  Selections  at  4fi,  are  also  slightly  higher.  On 
the  other  hand,  East  Rand  Minings  have  declined  is.  to 
17s.  6d.,  and  Knights  3-32  to  I'/i.  Among  Diamond  descrip- 
tions, Jagersfonteins  have  risen  -^  to  4j^.  In  the  Rhodesian 
section.  Gaikas  have  been  flat  on  news  from  the  mine  that 
the  southern  pay  shoot  has  petered  out  entirely ;  the  shares 
are  -^  lower  at  |f.  Rezendes  have  risen  'yi  to  4t%,  and  Tangan- 
yikas  T^  to  3J4.  West  African  gold  shares  are  rather  easier; 
Ashanti  Goldfields  have  declined  to  20s.  6d.  on  the  reduction 
in  the  quarterly  dividend  from  25  to  20  per  cent. 
Copper  and  Miscellaneous. 

With  the  exception  of  Arizonas,  which  have  rallied  to  2^, 
Copper  shares  have  shown  a  dull  tendency.  Namaquas  have 
declined  ^  to  2'4  on  the  announcement  that  operations  at  the 
niines  have  been  tempwrarily  suspended,  as  all  shipments  of 
copper  concentrates  from  South  Africa  have  been  stopped  by 
the  Ministry  of  Shipping.  There  has  been  further  colonial 
buying  of  Broken  Hill  shares.  Proprietarys  have .  advanced 
2s.  6d.  to  68s.  6d.,  Norths  is.  3d.  to  6is.  3^.,  British  Pro- 
prietarys IS.  to  40S.  gd.,  and  Block  Tens  -/g  to  if},  but 
Amalgamated   Zincs  have  declined   is.   6d.   to  30s. 

Business  has  been  exceptionally  active  in  Tin  shares,  particu- 
larly Nigerian  descriptions.  Nigerian  Tin  Corporations  have 
advanced  4s.  to  21s.  gd.,  and  South  Croftys  have  risen  3s.  gd. 
to  34s.  gd.,  in  anticipation  that  the  rejJort  to  be  issued  shortly 
will  announce  a  final  dividend  of  is.  3d.  per  share,  making  33. 
for  the  year.  Other  rises  include  3s.  to  243.  in  Ropps,  4s.  3d. 
to  26s.  qd.  in  Jantars,  2s.  to  i6s.  in  South  Bukerus,  2s.  to 
17s.  6d.  in  Mongus,  -^  to  31-32  in  Naragutas,  is.  to  7s.  6d.  in 
Northern  Nigeria  (Bauchi),  on  the  declaration  of  an  interim 
dividend  of  2%  per  cent.,  13.  to  14s.  6d.  in  Rayfields,  and 
IS.  to  i6s.  6d.  in  Anglos.  Geevors  have  spurted  3s.  to  22s.  3d., 
East  Pools  13.  gd.  to  263.  3d.,  and  Renongs  have  recovered  }i 
to  2|.  In  the  American  group.  Mining  Corporations  of 
Canada  have  improved  to  i6s.  gd.,  and  Camp  Birds  have  risen 
to  gs.  Russians  have  scarcely  moved.  Of  the  Indians,  Mysores 
have  declined  3-32  to  2ji  on  the  reduction  in  dividend,  but 
Burmas  have  risen  to  4^.  West  Australians  have  been 
neglected. 


MINING    NEWS, 


recorded  by  this  company.  The  total  was  ;^i44>S5'>  as  against 
^26^,229  in  1916,  ^£216,065  in  1915,  iCS7,(>oo  in  1914,  and 
^^100,500  in  1913.  A  sum  of  ;^2o,ooo  is  appropriated  for  capital 
expenditure.  Debentures  to  the  amount  of  ;{;i85,25o  have  been 
redeemed,  and  the  year's  interest  on  the  first  debentures,  "A" 
and  "  B,"  paid.  First  debentures  outstanding  now  amount  to 
^n6,ioo'  of  "  A's  "  ar^  ;^363,950  of  "  li's."  The  year's  output 
of  coal  was  2,052,042  tons,  against  2,080,956  tons  in  1916,  and 
2,037,655  tons  for  1915. 

United  National  Collieries.— The  report  for  1917  shows  a 
marked  decrease  in  profits.  After  providing  for  excess  profits 
duty,  the  balance  of  profit  was  ;f225,82i,  as  compared  with 
^^320, 221.  The  reserve  appropriation  is  reduced  from  ;rioo,ooo 
to  ^50,000.  The  dividend  on  the  ordinary  shares,  however,  is  ■ 
maintained  by  a  final  payment  of  2s.  per  share,  tax  free,  and 
the  carry  forward  is  reduced  from  ^64,140  to  ;f 52,398.  Scarcity,, 
of  shipping  tonnage  caused  a  considerable  loss  of  output  at  the 
Risca  pits  during  the  latter  part  of  the  year. 

TvvEEFONTEiN  COLLIERY.— Sales  of  coal  in  1917  rose  -from 
4)6,898  tons  to  444,115  tons,  and  the  gross  profit  was  ^38,068, 
against  2'39.764-  After  deducting  excess  profits  tax  for  1915  and.. 
1916,  there  remains  .^26.431,  against  ^^26,007.  The  preference 
dividend  is  raised  to  the  maximum  of  10  per  cent.,  and  a  final 
dividend  of  19  per  cent,  is  to  be  paid  on  the  ordinary  shares, 
making  25  per  cent,  for  the  year,  the  same  as  for  1916.  This 
will  leave  /22,i2i  to  be  carried  forward,  subject  to  excess 
profits  duty  for  1917. 

MINING    RETURNS    FOR   FEBRUARY. 


WOLHUTER.— During  the  year  ended  October  31  there  were 
milled  406,750  tons,  a  decrease  of  16,750  tons.  Gold  produced 
.amounted  to  ;<;5oo,456,  against  ^531,383,  and  the  working  profit 
■was  £139,342,  against  ;^i6i,223.  The  yield  declined  from 
35s.  id.  per  ton  to  24s.  7d.,  and  as  costs  rose  3d.  per  ton,  the 
.average  profit  declined  from  7s.  7d.  to  6s.  lod.  per  ton.  The 
dividend  is  reduced  from  15  per  cent,  to  iii  per  cent.,  and 
A45.9S'..  again.st  ;f45,983,  is  carried  forward.  Owing  to  the 
change  in  the  system  of  taxation,  two  years'  taxes  have  been 
deducted  from  the  profits  of  the  past  year,  the  total  payment 
oevng  /3?.983.  Reserves  of  ore  show  a  decrease  of  230,520  tons 
at  1,071,640  tons,  the  average  value  being  5.6  dwts.,  a  decrease 
of  .4  dwt.    Development  of  the  mine  is  now  near  completion. 

Cordoba  Copper.— Despite  the  high  price  of  the  metal,  this 
company  did  nothing  like  so  well  in  1917  as  in  1916,  and,  as 
a  result,  shareholders  who  got  a  dividend  of  10  per  cent,  last 
jear  get  nothing  at  all  on  the  present  occasion,  The  quantity 
of  ore  raised  was  76,146  tons,  and  the  production  of  blister 
copper  was  1,554  tons,  which  realised  ^196,614,  or  ;f  14,936  less 
than  the  1,746  tons  produced  in  1916.  Working  costs  amounted 
t°  A'55.533.  *nd  ^24,567  was  spent  in  the  purchase  of  ores.  A 
profit  of  ;fi3,si3  was  made,  against  ;f45,665,  and  £6,sS<)  was 
brought  in.  A  sura  of  jf9,ooo  has  been  written  off  for  deprecia- 
tion of  plant  and  machinery,  and  ;^ii,io3  is  carried  forward. 
The  directors  are  of  the  opinion  that  in  present  circumstances 
it  is  prudent  to  conserve  resources. 

Le  Roi  No.  2. — The  report  for  the  year  ended  September  30 
states  that,  after  writing  off  ;^i7,946  for  mine  exploration  and 
development,  machinery  and  plant,  &c.,  there  was  a  loss  of  £27. 
The  credit  balance  brought  in  is  reduced  from  ;£22,327  to 
;fi6,3oo.  During  the  year  10,984  tons  were  shipped  to  the 
smelters,  the  average  value  being  $22.86  per  ton,  these  figures 
comparing  with  16,228  tons  and  $20.62.  Costs  averaged  $15.82 
per  ton,  against  $15.12. 

United  CbL"LltEV'!s;_iA  sHatp  relaps«  in  t>fofits'fn  t^ifts'iVso 


Ashanti.— 6.699  tons  ;  value,  £32,957  {]iui.,  ;f33.253)- 
Aurora  West.— 12.100  tons  ;  profit.  ^398  (Jan.,  £2,970) -...^...^.^^ 
Balaghat.— Output,  1.471  ozs.  fine  gold  (Jan.,  i,6ii  bzs.).'      ■ 
Bantjes.— 15,530  tons  ;  loss,  ;f  1.204  (Jan.,  loss,  ;f396)-  '■"'• 

Brakpan.— 49,400  tons  ;  profit.  /32.909  (J*"-.  ;f39.934)- 
Cam  and  Motor.— 8.325  output;  ;fi3.i39  (Jan..  £18,915). 
Champion  Reef.— 26,609  tons;  8.033  ozs.  gold  (Jan..  8,012  ozs.J;' 
City  and  Sub.— 20.216  tons;  profit,  ;f6,i52  (Jan..  ;f 8,014).      '  '   ' 
City  Deep.— 50.800  tons ;  profit,  £47.247  (Jan.,  £5i.453)- 
Cons.  Langlaagte.— 40.300  tons;  profit,  /12.141  (Jan.,  £15. "8)- 
Cons.  Main  Reef. -45.020  tons  ;  profit,  £8.767  (Jan..  £14,858). 
Crown.— 142.000  tons:  profit,  £25.552  (Jan.,  £38,128). 
Durban  Rood.— 22,825  tons;  profit,  £1.010  (Jan.,  £820). 
Durban  Rood.  Deep.— 21,700  tons ;  profit,  £739  (Jan.,  £2."°). 
East  Rand  Prop.— 117.000  tons  ;  profit.  £5,434  (Jan.,  £3.709)- 
Ferreira  Deep.— 44,200  tons  ;  profit.  £16.505  (Jan.,  £1,568). 
Gaika.— 2,946  tons;  profit.  £1,539  (Jan.,  £1.259). 
Geduld.— 39.200  tons;  profit,  £19,468  (Jan.,  £20.000). 
Geldenhuis  Deep.— 46.200  tons  ;  profit.  £1,032  (Jan..£3.l92). 
Ginsberg.— 10.800  tons.  £13.221  ;  loss.  £157  (Jan.,  £548). 
Glencairn.— 17,500  tons  ;  profit,  £589  (Jan.,  £516).  ' 

Globe  and  Phoenix.— 6,193  tons  ;  profit.  £19,200  (Jan..  £i9.207)' 
Glynn's  Lydenburg.- 3,410  tons;  profit,  £751  (Jan..  £2.250)-       . 
Golden  Horse  Shoe. -2.894  tons;  profit.  £9.601  (Jan..  £10,060). 
Gov.  Areas  Mod.— 103.000  tons;  profit,  £58.603  (Jan.;  £60,215)1 
IvanhoeG.  Corp.— 17,929  tons;  profit.  £5.400  (Jan..  £9,006).' 
Jubitil.— 1,800  tons;  503  ozs.  fine  gold  (Jan.,  511  ozs.). 
Jupiter— 19,600  tons;  profit,  £1,115  (Jan.,  £1,216). 
Kalgurli. — 6.193  tons;  profit,  £1,530. 
Knight  Central.— 24.200  tons  ;  profit,  £113  (Jan.,  £490)- 
Knight's  Deep.— 89,600  tons;  profit.  £1,038  (Jan.,  £2,052).  _     , 
Langlaagte  Estate.— 37,854  tons  ;  profit,  £7.0*9  (Jan..  £9,016), 
Lonely  Reef  —4,700  tons  ;  profit,  £9.093  (Jan-.  £10,904). 
Luipaards  Vlei.— 16,950  tons;  loss,  £1,641  (Jan..  £1.500). 
Meyer&Charlton.— 8,710  tons;  profit,  £i4.997  (Jan..  £29.584)- 
Modder  "  B."— 39,000  tons  ;  profit,  £45.183  (Jan.,  £53.619)- 
Modder  Deep.— 29,500  tons  ;  profit,  £49.459  (Jan,  £51.385)- 
Mysore. — 72,492  tons,  15.105  ozs.  fine  gold  (Jan.,'  15,425  ozs.). 
New  Goch.— 14,300  tons  ;  profit,  £74  (Jan.,  loss,  £180):     ^ 
New  Heriot.— 7,700  tons  ;  loss.  £2.513  (Jan.,  profit,  £4.454)-^ 
New  Kleinfontein.— 51,810  tons;  profit.  £3,193  (Jan.,;  £9.i57). 
New  Modder.— 50,000  tons;  £64.880  (Jan.,  £65,076). 
New  Primrose. — 17, 200  tons;   profit,  £46  (Jan.,  £1.175).  -. 

New  Unified.— 9,900  tons;  profit.  £642  (Jan.,  £3.002).  '    ; 

N.  Anantapur— 4,:ootons;  1.129  ozs.  fine  gold  (Jan.,  i.i340^^-)' 
Nour.-ie- 36.400  tons ;  £47,219  ;   profit.  £2,329  (Jan..  £1.892). 
Nundydroog.— 19.898  tons.  6,186  ozs.  fine  gold  (Jan.,  6, 328  ozs). 
Ooregum.— 29,686  tons;  7.460  ozs.  fine  gold  (Jan..  7,499 ozs.). 
Princess  Estate.— 17,200  tons  ;  loss,  £538   (Jan.,  £538)- 
Randfontein  Cent.— 149,000  tons;  profit,  £20.909  (Jan..  £36.065). 
Robinson  Deep.— 45.000  tons  ;    profit.  £8.961  (Jan..  £9.35o)- 
Robinson.— 36.600  tons;  profit,  £3,003  (Jan.,  £8.631)  ■ 

Roodepoort  United.— 24,054  tons'  loss,  £1,232  (Jan.,  £-^.265).   ■ 
Rose  Deep.— 50.400  tons  ;  profit,  £12,313  (Jan..  £14.079)- 
Shamva.— 48.886  tons;  profit.  £11.137  (Jan..  £13,054).  4, 

Simmer  and  lack.— 47,000  tons  ;  profit.  £15,708  (Jan:,  £17.229)*. 
Simmer  Deep.— 37.900  tons  ;  loss.  £3,219  (Jan..  loss.  £1.617).''; 
Sudan.-  £3.837  output  (Jan..  £3,858).  ,  ^«^v^-  .vt 

Transvaal  Gold —12.120 tons;  ptbfit.  £4,900  (Jan.,  £3.060). 
Van  Ryn— 31,700  tons  ;  profit,  £8,346  (Jan..  £9*027).  '' 

Van  Ryn  Deep.— 41,160  tons;  pi-ofit.  £52,062'  (Jan..  £55.«49V."  ': 
Village  Deep.— 40.100  tons  ;  profit.  ^2.438  (Jan..  £12.110).  ^-  _ 
Village  Main  Reef.— 21.500  tons;  profit.  £8.846  (Jan..  £8,7377.'^ 
Wanderer.— 18,740  tons  ;  loss,  £960  (Jan..  profit.  £110).  '■". 
West  Rand —31.380  tons  ;  loss.  £1.690  (Jan./ £2.013).  '';  ^.^ 
Witwatersrand  —33,000  tons;  profit,  £7,301  (Jan.,  £9.384).,  J^ 
Wit.  Deep.— 29.500  tons  ;  loss,  £6,876  (Ifcq.,  loss,  £2.979l-',  • 
Wolhuter.— 25,100  tons;  profit,  £3.^04  (J"-.  £7.7«H)- 


300 


Zbc  5nve6tot6'  IRevtew. 


March  23,  1918. 


SCOniSH  UNION  &  NATIONAL 

mSUIUNCE  COMHHV. 

E8TABL.1BHKD    1824. 

ASSETS    exceed    g1 1,000,000. 

FIRE  (INCLUDING  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 

PENSIONS,     LEASEHOLD,    BURCLARY,    CLASS    BREAKACE,     TRANSIT    OF 

SECURITIES,   FIDELITY,  PROPERTY  OWNERS'   LIABILITIES,  HORSE  DRIVING 

ACWDBNTS.  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 

MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh:  35,  Bt.  Andrew  Square. 

London:  8,  Walbrook,  E.G.  i,  and  i,  St.  James'  St.,  S.W.  1. 

IKT  *W     *iV      ASSURANCE    COMPANY 
JCW     JL  mitBmtm  LIMITED, 

ESTAHLISHED   1782. 

HMd  Offlee:  PMENIX  HOUSE,  KING  WILLIAM  STREET,  LONDON,  E.G.  4. 
Total  Asset*  Bxoeed  4B17,000,000. 
Claims  Paid  Bxoeed  £88,000,000. 

Ch«ltman— Rt.  Hon,  LORD  GEORGE  HAMILTON,  P.C,  G.C.S.I 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

LoM  of  Profits  following  Fire,  Workmen's  Compensation,  Fidelity  Guarantee, 
Burglary,  Trustee  and  Executor,  &c. 
Prospectuses  and  Proposal  Forms  may  be  obtained  on  application  to  anj  of 
the  Branch  Offices  or  Agencies,  or  to  the  Head  Offices 

General  Manager       -       SIR  GERALD  H.  RYAN. 


NOTICE. 
Owing  to  Good    Friday    falling   next  week,   "The 
Investors'     Review"     will     be     published     on 
Thursday  morning. 

Z\x  3nv?e6tors'  1Rev>iew. 

Money    and   Credit   Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5J  percent. pn 
Thursday,  April  5,  19x7.) 

NorfMt  House,  Friday  Evtniug. 

As  the  end  of  the  Government  year  approaches,  the  effect 
of  loan  subscriptions  and  tax-gathering  makes  money  scarce 
at  times  in  the  open  market.  Borrowers  have  been  paying 
3i  to  3i  per  cent,  for  day-to-day  money,  and  a  little  business 
has  been  done  at  the  Bank  in  seven-day  loans  at  4  per  cent. ; 
but  all  through  these  passing  flutters  discount  rates  remained 
unchanged,  and  our  table,  therefore,  stands  as  before.  Some- 
timfs  money  has  been  obtainable  at  3  per  cent,  or  less,  but,  on 
the  whole,  it  has  been  dearer  this  week,  and  may  be  still  more 
difficult  to  come  by  in  the  Jast  week  of  the  month  which  ends 
the  year. 

The  Bank  return  shows,  hdwever,  that  no  very  severe  pinch 
is  to  be  looked  for.  Other  deposits,  indeed,  are  /fs, 383, 000  up, 
thanks  to  ^^2,979,000  drawn  from  public  deposits  and 
;f 1, 634 ,000  added  to  other  securities.  The  reserve  is  also 
;4446,ooo  higher,  through  an  increase  of  ^{^szo.ooo  in  the  coin 
and  bullion,  minimised  only  to  the  extent  of  ^74,000  by  an 
increase  in  the  note  circulatioa.  The  proportion  remains  at 
18J  per  cent. 

Kollowing  the  usual  venerable  formality.  Lord  Cunliffe,  the 
retiring  Governor  of  the  Bank  of  England,  presiding  at  the  half- 
yearly  meeting  on  Thursday,  declared  the  dividend  for  the  half- 
year  as  already  worked  out  and  announced  bv  us.  It  was  at 
the  rate  of  10  per  cent,  per  annum,  or  5  per  cent,  for  the  half- 
year,  less  tax,  and  after  paying  it,  the  "  rest  "  will  stand  at 
^3,019,222.  Some  judicious  references  were  made  by  Lord 
Cunliffe  to  the  events  that  have  taken  place  during  the  three 
years  of  his  governorship— for  his  term  was  extended,  as  many 
hoped,  to  last  out  the  war.  It  has  not  done  so,  and  he  now 
gives  place  to  Sir  Brien  Cokayne,  who  has  been  his  deputy  all 
the  time,  and  is  well  qualified  to  continue  his  work.  Most  in- 
terest, however,  will  be  felt  in  his  lordship's  words  about  the 
position  of  the  Bank  and  the  agitation  for  drastic  changes  in 
Its  charter.  Upon  this  matter  his  words  were  reassuring. 
People  are  naturally  disposed  to  think  that  .1  privileged  body 
like  the  Bank  of  England  Court  would  resent  any  interference 
with  their  domain.  If  that  was  ever  their  idea-and  we  rather 
suspw^t  It  was— then  the  war  has  chaste-ieU  them,  and  Lord 
Cunhf.e  was  able  to  tell  the  proprietors  that  they  might  rest 
assured  that  more  up-to-date  machinery  waa  in  ooiirae  of 
being  set  tip.  and  would  be  ready  to  obtain  Parliamentary 
sanction  in  time  to  combat  successfully  the  many  difficulties  he 
saw  in  store  for  the  Bank  after  the  war."  That  is  good  news,  for 
if  anything  is  certaifl  ia  this  world  it  i»  that  the  difficulties  our 
banks  will  have  to  encounter  and  overcome  promise  to  be  far 
more  foririd.^ble  when  the  war  is  finish.'d  than  they  look  to 
be  now,     ^«  Jiopft,  jbowei^,  [jut  *fee  new  eystem  will  not  be 


sanctioned  without  public  discussion.  The  committee  now  sit- 
ting to  examine  the  bank  amalgamation  and  other  probleme  is. 
Lord  Cunliffe,  who  was  its  chairman,  said,  fully  alive  to  the  fact 
that  both  the  old  Charter  and  the  Act  of  1844,  well  as  they  have 
served  their  time,  stand  in  much  need  ol  revision. 

Two  resolutions  relating  to  Bank  of  England  reform  will 
be  discussed  at  the  meeting  of  the  Associated  Chambers  of 
Commerce  on  April  9  and  10.  One  resolution  has  been  put 
down  by  the  Norwich  Chamber  and  the  other  by  the  London 
Chamber.  The  London  Chamber  some  time  ago  appointed  a 
special  committee,  with  Mr.  KaithfuU  Begg  as  chairman,  toi 
consider  and  report  on  the  constitution  cind  functions  of  the 
Bank,  and  to  make  recommendations.  The  London  resolution! 
differs  in  important  respects  from  the  Norwich  resolution. 
The  latter  advocates  the  repeal  of  the  Bank  Act  of  1844,  as 
suggested  by  Sir  Edward  Holden,  but  the  former  is  not  iiv 
favour  of  repeal,  but  only  of  amendment.  The  London  Cham- 
ber proposes  that  the  maximum  amount  of  the  Bank's  note- 
issue  in  normal  times  should  be  regulated  by  provisions  for 
cover,  consisting  of  not  less  than  one-third  of  gold  or  cash- 
balances,  and  at  the  same  time  bills  of  exchange.  It  is  also- 
proposed  that  the  Bank  should  have  the  power  to  make  an- 
excess  issue  upon  payment  of  a  tax  on  the  lines  laid  down  in- 
the  Federal  Reserve  Act  of  the  United  States,  or  in  some- 
similar  manner.  The  London  resolution  also  states  that  it  is. 
essential  to  the  efficient  working  of  any  system  for  the  regula- 
tion of  note  issues  by  the  Bank  of  England  that  there  should' 
be  legislative  control  of  and  safeguards  upon  the  issue  of 
Treasury  notes. 

An  agreement  having  at  last  been  reached,  a  Bill  is  to  be 
introdticed  in  the  United  States  Congress  authorising  the- 
Government  to  melt  down  and  sell  200  million  silver  dollars, 
out  of  the  460  millions  at  present  kept  in  the  Treasury  vaults 
against  silver  currency  certificates.  The  silver  to  be  thus  re- 
leased will  be  available  for  export  to  India,  China,  Japan,  or 
elsewhere,  and,  in  order  to  replace  it,  the  American  silver  pro- 
ducers have  agreed  to  sell  their  output  from  the  mines  for  the- 
next  year  or  two  to  the  United  States  Treasury  at  a  fixed  price,. 
prolmbly  one  dollar  an  ounce. 

The  marked  weakness  of  the  neutral  exchanges  has  been  the- 
dominant  feature  of  the  foreign  exchange  market  this  week. 
A  heavy  fall  has  occurred  in  the  Scandinavian  rates,  and  the- 
Spanish  exchange  has  fallen  to  the  lowest  level  an  record. 
Stockholm  has  declined  i.isi  kr.  to  13.65  kr.,  Copenhagen  67 
points  to  15.03  kr.,  and  Christiana  is  27J  points  Tower  at 
14.70  kr.  Amsterdam  is  16  points  lower  at  10.24J  fl.  The  ex- 
tent of  the  decline  indicates  that  Scandinavi.in  and  Dutch- 
funds  employed  here  are  being  withdrawn  to  some  extent, 
and  the  fact  that  this  is  being  done  despite  the  loss  involved" 
shows  that  reasons  other  than  financial  are  responsible  for  the- 
movement.  Purely  financial  considerations  would  tend  to 
keep  the  money  employed  here.  The  Spanish  exchange  has 
declined  27J  points  to  18.80  pesetas  to  the  pound.  The  Itali.in 
exchange  is  a  shade  firmer  at  41.10  Ir.,  but  Switzerland  has 
declined  30  points  to  20.75  f"'-  Montreal  is  ij  cents  lower  at 
f4-82i- 

Count  Roedern,  Secretary  to  the  German  Treasury,  in  intro- 
ducing the  latest  demand  for  credit,  which  is  nominally  a  mere 
;^ 750,000,000,  disclosed  the  fact  that  Germany's  monthly  war 
expenditure  has  risen  from  ^100,000,000  during  the  winter  of 
1915-16  to  ^187,500,000  in  the  last  five  months.  We  shoulff 
have  thought  that  the  expenditure  was  considerably  larger,  but 
do  not  care  enough  about  it  just  now  to  argue  the  point.  The 
Count  went  on  to  declare  that  the  cost  of  the  war  to  all  parties 
has  been  thus  far  ^27,500,000,000,  and  he  lays  ;f  18, 500,000,000 
of  that  fine  mass  to  the  charge  of  the  Allies  of  the  Entente, 
modestly  claiming  only  /g,ooo,ooo,ooo  for  the  share  of  the- 
Central  Empires.  It  is  well  to  have  these  landmarks  from  the 
lie  factory,  because,  although  they  do  not  represent  the  facts, 
they  set  forth  to  some  extent  the  German  view  of  what  the  facts 
ought  to  be;  reveal  likewise  something  of  the  trickery  by  which 
tlie  German  people  is  lured  on  to  its  ruin. 

The  London  County  and  Westminster  Bank,  Ltd.,  are  autho- 
rised to  receive  subscriptions  for  ;^i ,000,000  Port  of  London- 
5^  per  cent,  inscribed  stock  at  the  price  of  gq%  per  cent. 
Principal  is  repayable  at  par  on  March  i,  1933,  but  the  Port 
of  I./>ndon  Authority  retains  the  option  to  redeem  at  par  on 
or  after  March  i.  1923,  on  giving  six  months*  notice.  The- 
issue  is  made  chiefly  for  the  purpose  of  paying  off  temporary 
loans  to  meet  capital  expenditure  on  the  improvement  and  de- 
velopment of  the  facilities  of  the  Port.  Interest  is  payable- 
March  I  and  September  i,  and  a  payment  of  i  per  cent.,  re- 
presenting interest  on  instalments,  will  be  made  on  Septem- 
ber 2  next.  Of  course,  there  is  no  question  about  the  security 
of  the  stock  as  an  investment. 

The  Law  Debenture  Corporation,  Ltd.,  having  purchased 
/'f)oo,ooo  6  per  cent,  first  mortgage  debentures  in  the  Tees 
Power  Station  Co.,  Ltd.,  now  offers  them  for  sale  at  the 
price  of  gSj  per  cent.  Owing  to  the  enormous  increase  in  the- 
demand  for  electric  energy,  the  Newcastle-upon-Tyne  Electric 
Supply  Co.,  Ltd.,  has  found  it  desirable  to  secure  an  .-iddi- 
tional  power  station,  and  it  has  formed  th«  Tees  cSmpany  with- 
a  share  capital  of  ^700,000  as  a  subsidiary  to  carry  out  the 
work.  The  Newcastle  company  guarantees  the  debentures  as  to 
principal  and  interest,  and  they  will  be  redeemable  not  later 
than  1950  by  means  of  a  sinking  fund  commencing  in  iqat. 
but  the  company  will  have  the  option  of  redeeming  all  the  de- 
bentures outstanding  after  October  i,  tqi2.  at  103,  on  givine 
six  months'  notice.  Ag  the  Newcastle  company  last  year  made 
a  nett  profit  of  ;f  221.000,  and  has  been  making  rapid  proRress 
recently,  it  is  perfectly  competent  to  carry  out  its  obligation*. 
and  the  debentures  appear  to  be  a  sound  indnstrial  investment. 


I 


March  23,  1918. 


^be  Jnvestora'  IReview. 


301 


Silver. 
Silver  has  beep  moving  up  somewhat  feverishly  this  wreek, 
and  in  two  days  jumped  rj^d.  to  45d.  per  oz.  Mocatta's 
circular  reports  large  purchases  in  San  Francisco  on  Chinese 
account.  These  have  strengthened  the  market,  but  the  latest 
rise  is  ascribable  to  the  report  from  Washington  noticed  above. 
In  Montagu's  circular  it  is  stated  that  an  agreement  has  been 
entered  into  by  American  silver  producers  to  sell  the  whole  of 
the  output  for  the  next  year  or  two  to  the  United  States  Trea- 
sury, at  the  probable  fixed  price  of  $1  per  ounce.  This  is  by 
far  the  most  important  event  that  has  occurred  in  the  silver 
market  in  recent  times.  Should  this  Bill  become  law,  the  effect 
.should  be  to  establish  the  price  at  a  somewhat  higher  level  than 
has  been  ruling  for  some  time  past,  eventually  to  settle  down 
at  about  466.  per  ounce  standard,  plus  charges,  and  to  remain 
more  or  less  "  pegged  "  at  that  price.  A  decline  of  45  lacs  is 
shown  in  the  Indian  note  circulation,  and  of  24  lacs  in  the 
silver  reserve,  bringing  the  one  down  to  10,259  lacs  and  the 
other  to  1,247  '^^s.  In  Shanghai 'the  stock  in  sycee  has  gone 
down  100,000  ozs.  to  29,750,000  ozs.,  but  the  stock  in  coin  is 
$300,000  up  at  $13,800,000. 


Applications  for  the  Rs.  60,00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Rs.  2,19,55,000.  Of  these 
I^s.  55,49,000  were  allotted  in  deferred  transfers,  and  Rs. 
4.51,000  in  immediate  transfers.  Tenders  for  bills  and  de- 
ferred transfers  at  is.  4  29-32d.,  and  for  immediate  transfers 
at  IS.   5d.  received  about  27  per  cent. 


BANK    OF    ENGLAND 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 
Week  ending  on  Wednesday.  March  20,  1918. 


WotM  laaned 


ISSUE    DEPARTMENT. 


71,166,475 


f7»,i66,473 


Government  Debt.. 
Other  Seouritiea    .. 
Gold  Coin  and  Bullion 
Silver  Bullion 


£ 
11,013,100 
7, 434.900 

59.716,475 

f78,i66  475 


BANKING   DEPARTMENT. 


ProprlelorB  C<pllal 

Real 

Pubilo  Deposlls(lnoludlng 
Bxcliciuer,  Savings 
Banks,  Comoiissioners 
of  National  Debt,  and 
Dividend  Aooounts) .. 

Otbac  Deposits 

Seven  Day  and  other  Bills 


£ 
14,553.000 

3,593.110 


Government  Securities  .,  56,985,782 

Other  Seourlties    ..        ..  99,228,693 

Notes 30,807,580 

Gold  and  Silver  Colo      ..  888,550 


35,573.425 

134,380,750 

10,320 

£187,910,605 


fl87, 910,603 
J.  G.  NAIRNB,  CliM  Cashier. 


Dktad  March  11,,  1918. 

BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


LONDON  BANKERS'  CLEARING. 


Date. 

Increase. 

Decrease. 

1918. 

1917. 

£ 

£ 

January 

2,073,224,000 

1,865, ia5,coo 

208,099,00a 

February 

1,605,654,000 

1,779.524,000 

173,870,000 

March       6 

464.«45,ooo 

540,796,000 

— 

73,95 ',000 

>.       13 

426,604,000 

312,109,000 

114,495,000 

,1        v> 

419,381,000 

331,574,000 

87,807,000 

— 

Total 

4,969,708,000 

4.829,128,000 

410,401,000 

>49,82l,coo 

CURRENCY  NOTES. 

Return  of  Currency  Notes  for  the  vreek  ended  March  20,  1918. 


Issued. 

Cancelled. 

Outstanding. 

£1  notes         

IDS.  notes        

Note  certificMes 
Previous  total 

3,833.»3» 

l.«5.9<^ 

l8o«io 

•55.9J4.596 

£ 
3,366.899 
1,296,860 

631,607,681 

637,a71.440 

163.483,186 
57.118,911 
23,320,000 

211,316,715 

861,193,537 

«a3,9a».097 

PUBLIC   INCOME  AND   EXPENDITUEE. 

(For  7  days  ended  March.  16.) 


Revbnub. 


£ 

Customs          ..        ..        ,,  1,001,000 

Excise 1,260,000 

Estate,  &c.,  Duties..        ,.  736,000 

Stamps 82,000 

Land  Tax  and  House  Duty  130,000 

Property  and  Income  Tax  11,03^,000 

Excess  Profits  Tax..         ..  6,013.000 

Land  Values »  15,000 

Post  Office 700,000 

Crown  Lands — 

Sundry  Loans..        ,,         ..  — 

Miscellaneous 106,000 

Bullion  advances  repaid    .,  80,000 

ForTreasuryBillsfor  Supply  33,269,030 

5%  Exchequer  Bonds,  1922. .  — 

6%  Exchequer  Bonds,  1920. .  — 
National  War  Bonds         ..*.^4,967,0O3 

War  Savings  Certificates..  6,oco,ooo 
4%  War  Loan,  1929-1942  ) 
5%  War  Loan,  1929-1947  f  '  * 
Other  Debts  created  under 
War  Loan  Act,  1915,  and 

Finance  Act,  1916..         ..  7,135,362 

Telegraph  Money  Act,  1913  — 
Under  Post  Office  RIy.  Act. 

1913 — 

Under  Military  Works  Act, 

1897.1903 — 

Under  Public  Buildings    ..  — 

Under  Housing  Act..         .,  — 
Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds           — 

China  Indemnity      ..        ..  — 
East    Africa    Loan    repay- 
ments          ..  — 

Suez  Canal  Drawn  Shares. .  — 

Ways  and  Means  Advances  7,500,000 
Decrease      in      Exchequer 

balances       3,066,128 


£112,096,490 


Expenditure. 


National  Debt  Service 
Interr-st,    &c.,  on  War  Debt 
Development  &  Road  Impvt 
Payments  to  Local  Taxation 
Other    Consolidated    Fund 

Charges        

Supply  Services       .,         ..46, 
Bullion  Advances     .. 
For    Advance    for    Interest 
on  Exchequer  Bonds  un- 
der   Capital   Expenditure 
(Money)  Act,  1904  ,. 
For  Treasury  Bills  ..         ..  6i, 
Other  Debt  under  War  Loan 

Acts,  1914-16  ..         ..7 

For    War     Loan  and     Ex- 
chequer     Bonds      under 
Section  6r  of  Finance  Act, 
1916,  and  Section  34.  igi7    'i 
Under   Telegraph    (Money) 

Act,  1Q13 

Under    Post    Office     (Lon- 
don^ Railway  Act,  1913.. 
Under  Military  Works  Acts 
Under  Housing  Act,  1914.. 
Public    Buildings  Expendi- 
ture Act,  1903 
Old  Sinking  Fund,  1907-8.. 
Sinking  Fund,  1914.. 
China  Indemnity      . . 
East  African  Loan  . . 
Cunard  Agreement  Act 
Expenditure  Certificates   .. 
Depreciation  Fund  ..         ..    i, 
Suez  Canal  Drawn  Shares. . 
TemporaryAdvances  Repaid    i 
Increase       in       Exchequer 
balances       


£ 

484.632- 
283,167 

3*53.827 


,000,000- 
50,  00 


,iC8,coo- 
,030,924. 


375,314 


52,lCO 

oco.oo*- 


,025,000 


;Cii2,096,49a 


'^Excluding  sales  through  banks  which  have  not  yet  been  brought  te  account.. 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.). 


Feb.  21,  1918. 

Feb.  li,  191S. 

Feb.  23,  IJ17. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

89,501,600 
73,034,600 
10,500,000 

£ 
89,275,600 
77,393,200 
10,500.000 

,    £ 

56,271,000 
42,772,200 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

175,056,200 

I75,4'>4,6oo 

4,or8.20O 

I77,l6!i,8oo 

170,475,000 

4,o6,,6r50 

99,Q43.MO 

61,237,200 

384.<oo 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

354,479.000 
12.ot5.800 

351,708,400 

12,0^8,800 

160,664,800 
3,039,800 

Total  reserves  . . 
Bills  discounted— Members'. . 
Bills  bought  in  open  market 

366,504,800 
ior,9o6,8oo 
59214.000 

363,747,200 

100,383,200 

57,452,600 

163,704,600 
4.053,«OP 

24  793.201 

Total  bills  on  kand     . . 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  s«c.     . 
All  other  earning  assets 

161,140.600 

10,590,000 

33,941,400 

687,20. 

157,835,800 

10,468,600 

31,196,200 

897.200 

28,846,400 
5,894,200 
3,729.400 
3,473.400 

T.tal  earning  assets  . . 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 

206,359,400 

2,J92,600 

59,8lo,40o 

190,397,800 
3.451,600 

71,413,800 

41.9*3.400 

146.400 

27,388,000 

Total  dedctns.  fm  gross  dep. 
5%Red.Fund  agFed.Ret.bknts 
All  other  resources 

62,173,000 
107,400 
146,200 

74,865,41.0 

107,400 
116,400 

27,514.400 

90,000 

1,605,600 

Total  resources 

6^5,290.800 

629.234,200 

234.87IOOO 

Capital  paid  in 

Suoplua    ' 

Government  deposits  .. 

Due  to  membrs-Res.  account 

Collection  items 

Oiherdeps  inc  For. Govt  crdts 

14,061,000 
226,800 

It,333,000 

291,944,010 
39,855,600 
11.665,800 

14.645.800 
2a6,foe 
17,528,600 
281,942.800 
45,657,803 
io,463,«>o 

11,197,800 

.,681,400 
138,495,000 
21,765,2.0 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn— nettliab. 
All  other  liab,  in  for  Gov  crdts 

354,698,400 

262,916,200 

1,599,800 

1,188,600 

355,592,200 

156,20  ),oeo 

1,599.800 

960,600 

162,941,600 
60,634, aoo 

104,400 

Total  liabilities 

635,290,800 

629,234,200 

214,878,000  ■ 

Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Ratio  of  gold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio    of    total    res.    to   nett 
deposit   and   F.R.    note  lia- 
bilities comb  ned      . . 

60.0% 
67.5% 

638% 

66.0% 

631% 
«8.,% 

67.7% 

73.1% 
101,6% 

.:.■     -i-    ■-■-■ 

N€W   YORK  ASSOCIATED   BANKS   (dollar  at  4s.). 


Loans        

Reserve  held  in  own  Vaults . . 
Reserve  held  in  Fed,  Res.  Bk. 
Cash  In  own  Vaults     . . 
Reserve  held  in  Other  Depos. 
Nett  Deniand  Deposits 
Nett  Time  Deposits     .  • 

Circulation         

Bxeess  Lawful  Reserve 


Mar.i£,T9i8.  Mar.  9,1918   Mar.  2. 1918 


£ 

863,768.000 

3,326,000 

102,602,00c 

20,330,000 

1,536,000 

734,478,o»o 

40,058,000 

6,968,000 

9,')48.0oo 


877,136,00© 

3,274.oo« 

99.284,000 

ao,oo8,ooo 

723,813,000 
40,206,000 
6,960,003 

7,704,000 


£ 

855.»94,<»o 

3,302,000 

98,262,000 

19,840,000 

1,628,000 

39,722,000 
6,924,000 
8,076,000 


Mar.  17,1917- 


£ 

711,722,000 
101,106,000 
41,330,000 

11,494.000 

724,4»,00« 

3S,95o,oo» 

3,732,«JO 

28_968;00». 


Lawful  Reserve  consists  of    18%  of    the  Demand  Deposits  and  5%  ot    ta^ 
Time  Deposits 

NEW  YORK  STATE  BANKS  St  TRUST  COMPANIES  (dolUf  at  48.)- 


Ratio  of  gold  held  .fMait  notes,  this  week,  14.30  p,e. ;  Uat  wt.k  14.24  p«. 


Loans  ..        •• 
SjweU 
OepoaHs 
L.^.1  Tenders 


Mar.  16,  1918. 


.. 


148, 500,000 
24,914,000 

139.374,000 
12,532,000 


Mar.  9, 1918. 


I48,324.aM 

2.906,000 

i]9,996,aa. 

l3.lo«,..o 


Mar.  2,  1918. 


( 
174,874,000 

3.590,  M. 

172,818,000 

l6,97<,oo. 


Mar.  17, 1917.. 


1 ' 

I54.394.*>.  :. 
i).8it.ooa  • 
l6},l6».ooo 

l.ljJ.OM 


302 


Zbc  Jnvestors'  IReview, 


March  23,  1918. 


BANK  OF  PRANCE   (25  francs  to  the  X). 


Gold  In  hand 
Silver  In  hand 
Bills  dItooanMd 
Advanofli       .. 
Noteairoulatloo 
Public  depoaitt 
Private  denoaiu 
ForelKD  Bllla. . 


Mar.  14,  1918! 


T" 

■33.3l6.l6a 
10,248,300 
43.563. 560 
47,030,800 

989,764,800 

1,553,040 

103, 927 ,4*10 

434.300 


Mar. 


Feb.  28.  1918^ 

I33,2il,520 

10, 197,040 

53,489,360 

46,815,330 

973,333.280 

2,089,080 

103, 249, coo 

350.000 


"Mar.  15, 1917. 


128,856,16a 
10  604.920 
19,341,600 
49,125,240 
734.46i,96!> 
900,680 
97,756,680 
93,840 


Proportion  between  bullion  and  olrcniatian  22.74  per  cent.,  against  23.83  per 
•ent.  last  week.  Advances  to  the  State  ;C543,ooo,ooo,  increase  /8,ooo,ooo.  The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium.  £19,537.000, 
<lecrcase  ;f37,68o.  ud  at  the  branches  £34,897,600,  decrease  £33,730. 

IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  £). 


OPEN  MARKET  DISCOUNT.  Las'  week  This  week 

Per  cent.  Per  cent. 
Thirty  and  sixty  day  remitted             .*        ..        ••           .,        3X 

Three  months  „  ■.        ..         ••  .,        3A  .,  3j 

Pour  months  „ .,      3A— |  ••  3] 

Six  months  ,  .,      3ft— I  ..  3jL 

Three  months  fine  Inland  bills  ,.        4 -1  ,,    4-1 

Four  months  ,,      4i~|  ••  49 — I 

Six  months  ,,      4I— x  4I — \ 

BANK    AND    DEPOSIT    RATES.    Last  week  This  week 

Per  cent.  Per  ceot, 

Bink  of  Kngland  minimum  disooool  rate        5  *■      -5 

„  ,(         short  loan  rates  •         .,        —  .,        — 

Bankers' rate  on  deposits  ..        ..        ••        •»        ••        3  •>        3 

Bill  brokers' deposit  rate  (call} 3  ..        3 

„  7  and  14  days' notice  3}  .,        3^ 

Current  rates  for  7  day  loans  3}  .,        3I 

„  foroall  loans  3— ^  ..      3— } 


Total  Coin  A  Bullion 
Treasury  Notes 
Bills  discounted 
Advanoes 
Note  circulation 
pepoelts 


Ua'.  7,  1918. 


£ 
136,223,550 
65.787.500 
653.372,250 
318,800 
566,205,200 
329,«53,050 


Feb.  28,  lgi8. 


<36,i8i,4sa 
65.653,1.50 
633,474,650 
431,600 
563.541.400 
334.50'. 55° 


Feb.  23,  1918^  Mar.  7,  1917 


126,169,150 
62.713.500 
617.794.730 
300.150 
556.133,550 
303,460,900 


127,228,350 
M.475.050 
450.836,80a 
531.4  JO 
408,196,500 
202,028,500 


Clearing  House  return  during  February  £420,879,905,   against  £478,428,170 
in  January. 

BANK    OF    SPAIN  (25  pesetas  to  the  £). 


Mar   9, 1918 

Mar.  3,1918 

Feb. 23, 1918 

Mar.io,  i^>7 

f. 

£ 

£ 

£ 

Gold       

79,910,619 

79.740,876 

79.555.54I 

53.331.108 

Silver 

18,171,097 

28,391.950 

28,407,139 

29,731.767 

Foreign  Bills 

3,566,120 

3,576,898 

3,556,108 

3.5'3.536 

Discounts  ana  Short  Bills  .. 

30,669,071 

31,408,464 

31,336,108 

35.49 1. '47 

Treasury  Account,  &o. 

24.9''4.3i3 

24,958,460 

35.063,901 

36,748.453 

Notes  In  Circulation  .. 

"4.767.490 

113.958,379 

"3,335.319 

95.965 .0*7 

Current  Accounts,  Deposlta 

34,340,597 

34,288,890 

34,776.066 

30,454.997 

Dividends,  Interests,  Ao.     .. 

1,643,316 

1,802,869 

1.814.10S 

1,408,991 

Government  Securities 

5.756.708 

6,712,622  1     6,409,713 

1,767.338 

SWISS  NATIONAL  BANK  (25  francs  to  the  £).       .„,„.^ 

Mar.  7, 1918. 

Feb.  23,  rjiS. 

Feb.  23,  igi8. 

Mar.  8, 1917, 

Gold  and  illvec 

Bills 

Note  eireulatlon 
Current  and  deposit 
accounts     .. 

16.939,884 
8,913.S'7 
35.513.684 

3,803,412 

16,903,3*) 

8,860,124 

23,866,764 

3.079,4.6 

16,936,708 
8,084,84a 
34.516,484 

3.584,900 

15,807,304 

7.539.434 

20,101,832 

5.073.304 

BANK    OF    SWEDEN  (18  kroner  to  the  £). 


Geia  .. 

ealanoe   abroad  and 

Foreign  Bills 
bwedisb  and  Foreign 

Govt.  Securities  .. 
Oisoounlsand  Loans 
Notes  in  oiroulption 
Deposits  at  notice  . , 


Mar.  3,  1918. 


£ 
13,0:9,000 

7, 3 '6.000 

3,137,000 
13,720,000 
51,721,000 

5,519,00a 


Feb.  33, 1918. 


13,009,000 
7,364,000 

3,143.000 
11,421,000 
29,396,000 

5,676,000 


Feb.  16, 1918. 


£ 

13,084,000 

7,529,000 

2,881.000 
:1,433,00c 

3q,  -30000 
6,003,000 


Mar.  3,  1917, 


£ 
10,643,000 

8,197,000 


,767,000 
,935,000 

:,o66,0O0 
1,891,000 


LONDON  COURSE  Of  EXCHANGE. 

Usance. 

1  Mar.  19,  1918. 

Mar.  31,  1918. 

Sellers. 

Buyers 

Sellers.JBuyers. 

Amsterdam  . ,     . . 
Paris      

Swltterland!!     '.. 

Petrograd    '.'.    '.'. 

Genoa,  *o 

Spain     

Lisbon  and  Oporto 
Copenhagen..     .. 
Chrlstiania  ..     .. 
Stockholm  ..     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills. .     . . 

Cable  transfers 

Three  months'  bills  , .     , . 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Three  months' bills . ,     .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

10.39 
37.18 
3758 
20.83 
21.18 
nom. 
41.10 
18.88 

59, 

«7i 

15-18 

14.50 

14.15 

10.31 
37.21 
37.62 
20.93 
21.38 
nom. 
41. :o 
18.98 
60 
28J 
i5-3a 
15.00 

'4-35 

10.33 
27.19 

37-59 
20.38 
30.93 
nom. 
41.19 
18.58 
60 

37i 

15.13 
14.90 
13.95 

10.16 

17.32 
37-63 
20.63 
3a.98 
nom. 
4'34 
18.64 
61 
38J 

15-23 
13.00 
1406 

FOREIGN   RATES   OF   EXCHANtiE   ON   LONDON. 


Paris,  cheques         ~ 
Amsterdam,  cheques 
Italy,  sight 
Madrid,  sight.. 
Lisbon,  Eight .. 
Switzerland,  sight    ,. 
Chrlstiania,  siitbt 
Stockholm,  sight 
Copenhagen,  sight    .. 
Prtrograd,  sight 
Alexandria,  sight 
Bombay,  T.T. 
Calcutta,  T.T. 
Hong  Kong,  T.T.    .. 
Shanghai,  T.T. 
9<Bgap«re,  T.T. 
TTokohama,  T.T. 
New  York,  cable     .. 
Buenos  Aires,  T.T... 
Valparaiso,  90  daya., 
Montevideo,  T.T.     .. 
Rie  de  Janeiro,  90  days 


Method  of 
Quoting. 


Francs  to£i        T 
Florins  to  £1 
Lire  to  £t  .. 
Pesetas  to  £1 
Pence  to  milreis  . 
Francs  to  £1 
Kroner  to  £1 
Kroner  to  £1    .     . 
Kroner  to  £1 
Roables  to  £10 
Piasimio£i 
Sterling  to  rupee. 
Sterling  to  rupee. 
Sterling  to  dl.llar. 
Sterling  to  lael 
Sterling  to  dollar. 
Sterling  to  yen     . 
Dollars  to  £1 
BtBce  to  dollar    . 
Pence  ta  peso 
Pence  to  dollar 
Pence  to  milreis  . 


J?  " 


13.22i 
13.107 
33.321 

35-33J 
53id- 
13  33i 

18-159 
18.159 
18.159 

1/4 
1/4 


34.58d. 
4S6I 

47.58d. 

sId. 
ltd. 


Last 
Week. 


This 
Week. 


17.33, 
10-331 

41.03* 

19.09J 

said. 

20971 

■5-33J 

14-731 

15.70 

nom. 

iS 
3/0 
4/ji 

ml 
til' 

4-7< 


13d 
594a. 


The   Week's    Stock   Markets. 

Not  until  towards  lh«  end  of  the  week  did  the  Stack  Exchange 
give  any  sign  of  animation,  and  even  then  it  was  of  a  rather 
spasmodic  character.  Business  throughout  wafi  on  a  small 
scale,  and  the  general  feeling  was  rather  miserable,  if  not 
actually  depressed.  There  was  no  particular  reason  for  this, 
unless,  perhaps,  it  was  due  to  a  natural  reaction  following  the 
wild  excitement  of  Tank  campaigns,  which  undoubtedly 
diverted  a  considerable  amooint  of  iirvestment  money  from  the 
House.  Moreover,  the  delay  in  arriving  at  an  understanding 
as  to  the  method  and  scope  of  Japan's  intervention  in  Siberia 
was  regarded  with  some  impatience,  as  it  was  thought  that 
prompt  action  was  the  essence  of  the  contract.  But  st  may  be 
a  case  of  the  more  hurry  the  less  speed,  and  there  are  all  sorts 
of  susceptibilities  to  be  considered.  Things  began  to  wear  a 
more  cheerful  aspect  after  the  successful  little  scrap  with  Hun 
destroyers  in  the  Channel,  and  after  the  news  came  that  the 
expected  offensive  on  the  Western  Front  liad  begun  on  the 
whole  favourably  for  us,  the  tone  becune  more  comfident.  But 
the  next  two  weeks  will  toe  interrupted  by  the  holidays,  and 
nothing  much  in  the  way  of  activity  need  be  looked  for  just  at 
present. 

Very  few  signs  of  activity  have  been  displayed  in  the  Stock 
markets  this  week,  and,  generally  speaking,  the  tone  has  been 
exceedingly  dull.  It  certainly  improved  a  little  towards  the 
close,  but  the  change  in  sentiment  did  not  occur  early  enough 
to  make  much  difference  either  in  quotations  or  the  amount  of 
business  passing.  Consols  and  War  Loans  kept  fairly  steady, 
but  with  little  change  to  record,  and  among  other  gilt-edged 
securities  the  leading  issues  were  rather  weak.  The  under- 
writing of  ;/^i, 000,000  stock  for  the  Port  of  London  Authority 
also  tended  to  restrict  investment  purchases.  Colonial  Loans 
were  scarcely  mentioned,  and  in  the  Foreign  division  prices 
mostly  were  weak  under  the  lead  of  Japanese,  which  are  still 
adversely  affected  by  the  political  situation-  Chinese  also  gave 
way  to  some  extent,  but  Spanish  and  Greek  bonds  improved 
a  point  or  more,  and  Brazilians  also  showed  some  strength. 
Chilean   Fives  gave  way  a  point. 

Home  Railways  have  been  weak  throughout,  and  quotations 
sagged  almost  daily.  Americans  were  neglected  except  for  a 
brief  period,  when  they  developed  a  pronounced  weakness. 
Canadian  Pacifies  were  not  helped  by  a  poor  traffic,  and  they 
did  not  benefit  to  the  same  extent  as  Grand  Trunks  by  the 
favourable  rate  decision  of  the  Canadian  Government  to  which 
we  refer  more  fully  elsewhere-  Mexicans  were  neglected,  and 
Argentines  started  badly,  but  afterwards  recovered  smarUy  on 
the  arrangement  entered  into  with  the  Allies  for  the  shipment 
of  the  coming  harvest-     United  of  Havana,  was  weak. 

Bank  shares  received  a  moderate  amount  of  support,  and 
Lloyds  were  particularly  strong.  Breweries  generally  were 
weak,  with  City  of  London  and  Watney,  Combe  deferred  rather 
pressed  for  sale.  Other  movements  were  unimportant.  Egyp- 
tian securities  were  irregular,  but  closed  rather  better.  Among 
Gas  and  Electric  Lighting  shares,  South  Metropolitan  Gas 
was  very  weak  at  one  time,  but  finished  with  a  better  appear- 
ance. Iron  and  Steel  shares  opened  fairly  well,  but  after- 
wards became  dull  with  the  Explosives  division  conspicuously 
weak.  On  the  other  hand,  Canadian  Car  and  Foundry  and 
Otis  Steel  advanced  from  10  to  i;^  points  after  having  been 
left  in  the  shade  for  some  considerable  time  past.  Land  shares 
have  not  much  to  show,  but  at  the  finish  Hudson's  Bays, 
Nigers,  and  Pahangs  were  good.  Nitrate  shares  were  weak, 
and  Shipping  shares  were  dull  without  much  change  worth 
mentioning.  Marconis  advanced  smartly  on  the  result  of  the 
litigation  with  the  Government.  Miscellaneous  Industrials 
were  fairly  good,  but  Textiles  were  dull,  and  Courtaulds  gave 
way  a  good  fraction.  Price's  Candle  advanced  on  the  report, 
and  Callender's  Cable  also  received  support  on  the  bonus 
scheme. 

Oil  shares  were  in  considerable  favour,  especially  at  the 
start,  and  Anglo-Egyptian  particularlv  seemed  lo  be  in  favour. 
Afterwards,  however,  the  tone  became  weak,  and  Burmahs, 
"Shells,"  Urals,  and  Venezuelans*  all  gave  wav  to  a  greater 
or  less  extent.  Rubber  shares  were  helped  by  the  firmness  of 
the  market  for  the  raw  material,  and  after  the  persistent 
decline  of  the  past  few  weeks  there  were  evidently  bargain 
hunters  out  to  pick  up  shares  that  looked  cheap.  Consequently 
dealings  have  been  on  a  better  scale  than  for  some  time  past, 
and   a   substantial    recovery   in   values  has   taken    place. 


March  23,  1918. 


Zbc  Jnvestors'  IRevtew* 


303 


Consols 

War  Loan    3i% 

4i% 

,,  5%   I929-47- 

4%.  19^9-*^- 

India  3%  

„     3J% 

Australian  5}%,  1920-22  . 

Canada  4%,  1940-60 

„       44%.  1920-5  

N.S.W.4%,  1933 

Argentine  4%,  1900 

fler(!ian3% 

Braiil,  1913 

„       5%,  1914    

Chinese  1896  

,.       I9'2  

Bfjpt  Uni6ed  4% 

Caledonian  defd 

Gt.  Central  via •... 

,.         „         dfd 

Gt,  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

t.ancs.  and  Yorks 

London  Brighton  defd.  . 
London  Chatham  ord.. . . 


Last  I 
Weekh 


Last 
Week 


Canadian  Pacific  

B.  Indian  Guar,  4)  %  debs. 
Grand  Trunk  ord.    

Do.  ist  pf 

Do.  3rd  pf 

Antofagasta  dfd 

Brazil  Common 

e.  A.  ic  Pacific  

B.  A.  Gt.  Southern 

B.  A.  Western    

Anglo-South  American   . . 

Bank  of  Australasia 

Bank  of  N.S.  Wales 

Barclay  &  Co.  "  A  " 

Do.       "B" 

Capital  &  Counties  

Chartered  of  India    

Hongkong  &  Shanghai    . , 

Lloyds  

London  &  Brazilian 

Armstrong,  Wbitwortfa  .. 
Birmingham   Small  Arms 

Cammell-Laird 

Cargo  Fleet 

Dorman,  Long  

Associated  Cement 

Borax  dfd 

Bovrll    

Brazil  Traction  

British  Amer.  Tobacco  pf 

British  Aluminium  

British  Oil  &  Cake 

Brunner,  Mond 

Caitner-Kellner 

Coats 

Conrtaulds 

Canard 

Dennis  Bros 

Sastern  Telegraph   

ttastmans 

English  Sewing  Cotton  . 

Anglo-Kgyptian  "B"  ..., 

Baku  (los.)  , 

Burmah 

Lobitos 

Maikop  Pipeline   

Mexican  Eagle  pf ..., 

Allagar2/- 

Anglo-Java  Rub.  2/-     ... 

Anglo-Malay2/ 

Ayer  Kuning  £1 

Batang  Malaka  2/- 

Bekoh2/- 

Brit.  N.  Borneo  Trust  £1 

BukitCloh2/- 

fiukit  Kajangjf^i 

Bukit  Mertajam  2/.  

Bukit  Sembawang  2/-  ... 

Carey  United  £1   

Ceylon  Para  2/- 

Chersonese 

Chevi  t  2;-   

Dalkeith  2/- 

Eastern  Invest.  Trust  £1 

Grand  Central  £1 

Gula  Kalumpong  £t 

Highlands  £1 

Java  Investment  £t 


Java  Para  £1 

Johore  Rubber  Lands  £t. 

Kamuninj  2/- 

Kinla  Kellas2/-  

Kuala  Kubu  2]-  

Labua/- 

Langen  Java  £1 

Linggi2/- 

London  Asiatic  2/- 

Malacca  £1 :,.,; 

Malayalam  £i ,,,, 

Merlimau  2/-   ', , . , 

Padang  Jawa  2/-... ,..'.., 

Pataling  2/- 

Abbontiakoon  (10/-) 

fiechuanaland  Exp. . .... , 

Brakpan  

Broken  Hill  Prop.  (6/-)   ., 

Cam  &  Motor 

Central  Mining  (£it)  .... 

Chartered    

CitjrDeep      

Cons,  Gold  Fields 

Cons.  Langlaagte. .  ..,., 

Crown  Mines  (10/-) 

Da  Beers  dfd,  (£1  sot.)  .'. 
East  Rand   ....7  ........ 

Geduld.; i     ...i... 

G«v.  Areas  Mod  ,-..»••  n. 


43/3 
576 
61 
25/3 
38/6 


N.S.W.4l%5yf.bds 

„      4J%.  1922-7 

„         5%.  ■921-3 

51%,  '920-2    .... 
New  Zealand  4%,  1929    .. 

Queensland  4% 

4j%.'9J'>-5    .- 
Union   of  S,  Africa  4j%, 

1920-5     

Victoria  4i%.  1920-5 

Westn.  Aus,  4%    

French  War  Loan,  5%  . , 
Japan  4i%  (ist),  1905   .... 

„        5%. '907- 

Mexican  5%,  1899   

Russia4  % 

..      4j%.i9o9 

,.      5%.  '906 

London  and  N.-W 

London  and  S,-W.  dfd.  . . 
Do     red,  pf.  1914 

Metropolitan 

Do.       5%      pf.- 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastern 

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern 


Cent.  Argentine  ord...., 

Leopoldina 

Mexican  ord 

San   Paulo  (Brazilian)... 

United  of  Havana 

London  City  &  Midland 
London  County  &  West*.. . 
London  Joint  Stock... 
Nat,  Prov.  ol  Eng.(£io4  pd) 
Do.  (£12  pd) 

Parr's    

Standard  of  S. A 

Union  Discount 

Union  &  Smiths 


Kynochs  

Mond  Nickel  ord 

South  Durham  Steel 

Thornycroft    

Vickera 


TEiT 
Week 


Fine  Cotton  Spinneri .... 

Forestal  Land 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay    

Imperial  Tobacco  '  C  '  pf 

Lever  Bros.  "  G  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  &F 

P.  &0.  dfd , 

Royal  Mail 

Underground  Inc.  Bds. .. 


5/9  I 
12/10^ 
42/6  1 

4/2 
■t' 

■6/9 
4/9 
67/6 

4/ti 

3/, 
41/3 

9/3 

3/ 
5/5 
2/74 
«5/9 

=7/ 

35/ 
55/6 

26/ 
28/9 

30/ 
3/64 

4/ 

2/6 

8/6 

35/ 
24/74 

7/9 

5 
.33/9 

5/ 
3/74 

40/ 

|«4/ 
7/3 

5 
68/9 
11^6 

6i 
15/ 

2H 

'i 

■7/9 


37/3 
1/6 


3/14 
6/74 
14/ 

4/74 
4/6 
:6/9 

4/9 
71/6 
4/6 
3/3 
41/3 
9/3 
3/4i 

6/ 

2/94 
25/9 

27/"4 

35/ 

57/ 
28/ 

29/ 
33/ 
3/104 

4/ 

2/74 
9/3 
37/5 
26/6 

8/9 

5 

38/ 

5/44 

3/6 
4"/6 
4/ 
7/3 

69/3 
■1/3 
6i 

15/14 

m 
35/ 

.7/9 

hi 

•     1'- 


North  Caucasian  . 
Roumanian  Cons.. 

Shell 

Spies  (10/.) 

Ural  Caspian 


Perak  2/-  

Port  Dickson  2/-   

Rub.  Estates  Johore  £i.. 
Rub,  Estates  Krian  2/-. 

Rubber  Trust  £1 

Sampang  (Java)  2/-. . . 
Sapumalkande  £z     ... 

Seaport  £i 

Selangor 

Sengat  2/- 

Seremban  £1 

Shelford£i 

Sialang  £1    

Singapore  Para  2/-    ... 
Singapore  United  2/-    . 

Soember  Ajoe  2/- 

Stagbrook  £1 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  £1   

Sungei  Kapar  2/-    

Sungei  Kruit  £1 

Taiping  2/-  

Tall  Ayer  £1  

Tandjong  £1   

Tandjong  Malim  £1... 

Tebrau  £1  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdang  2/-  ... 
United  Sumatra  2/-  ... 

Vald'Or  2/- 

Vallambrosa  2/- 

Way  Halim  1/8  pd.    ... 


Gt.  Boulder  (2/-)    .... 

Kyshtim    

Mashonaland  Agency 
Meyer  &  Charlton    .. 

Modder  "B" 

IDo.     Deep 

Mysore 

Rand  Mines  (5/-)   .... 

Rio  Tinto(£5)   

Russo-Asi  itic 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Kyn  Deep  ,-....., 


97i 

92 

97» 

994 

864 

79 

gjj 

924 

924 

794 

758 

92 

84 

57 

344 

394 

494 

88J 

22 

■44 

54l 

■3| 

93| 

27JX 

62 

'94 

26i 


18 
183 
75 

7J 
'5 
28* 
264 
294 
32 

-'4 
26 

42/6 

3& 
42/6 
41/ 
44/9 

34/6 
48.6 
65/ 

33/6 
20/ 

4 

3J3 
18,6 
'6/ 

335 

lazi 

n 
H 

8/6 
6 

5/6 

6/9 
3/'o4 

39/ 

3/3 
26/3 
2/3 
25/ 
26/6 
30/ 
3/' 
37/6 
36/3 

61/ 
3/104 

3/ 
2/6 
33/ 
5/6 
7/6x 
36/3 
10,6 
49/ 
3/10 
35/ 
79/ 
3'/6 
59/6 
39/ 
2/44 
10/x 

8/ 
3/6x 
20/7i 


974 
92 

974 
98J 
86} 

924 

9»J 
924 
794 

91J 
83 

Ik 
394 
494 
88i 


744 
'44 

55 

'3; 
93; 

271 

61 

I9i 

2I> 


574 
374 
IH 
183 
74 
7J 
15 
284 
26 
50 
3« 

lot 

264 

3A 
42/S 
4>/ 
44 '3 

34/6 

48,6 

66/3 

2A 

7A 
33/6 
20/ 

4 

ii» 
'8/9 
16/6 

3354 
122 
79 

« 

8/6 
5A 

5/6 


7/'4 
3/'04 
39/ 
3/6 
28/9 
2/4 
27/ 
26/3 
30/ 
3/t 

38y 

35/ 
65/ 

4/ 
3/' 
2/6 

"' 
6/'i 

8/x 
36/3 
10/44 
49/ 

4/t 
32/6 
87/ 
30/ 
62/ 
44/ 
2/74 
10/9 

S/'l 
3/6X 
21/3 


6/9 
5X 


64 


LONDON    PRODUCE   MARKETS 

Sugar. — Market  remained  unaltered,  while  fair  allocations  were 
made,  chiefly  consisting  of  home  refined  descriptions. 

Coffee. — A  fairly  liberal  assortment  was  offered  at  public  sales, 
and  with  keen  competition  full  rates  were  obtained,  while  fancy 
prices  were  paid  for  mild  liquoring  parcels.  East  India  Mysore, 
good  mid  colory,  sold,  132s.  ;  Nelliampathy,  small,  good  to  fine, 
io8s.  to  135s.;  Nairobi,  mid  to  fine,  1173.  to  137s,;  Costa  Rica, 
good  mid  colory,  132s.  6d.  ;  Guatemala,  ditto,  ii6s.  6d.  ;  Mocha 
longberry,  ii8s.  ;  Santos,  good  to  fine,  75s.  to  78s.  The  market 
for  future  delivery  remained  steady,  but  quiet. 

CocoA.— Small  supplies  brought  forward  at  public  sales  passed 
off  slowly,  though  generally  steady  prices  were  secured.   Trinidad 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK   ENDING    MARCH  22.  1918.        


Last 
Week. 


■afar— per  owt., 
duty  14/,  98  "5t 
polarisation 

Tate's  Cubes 

Crushed 

Granulated  ..     .. 

Lyle'8  granulated 

Foreign  granu- 
lated, hrst  marks 
f.o.b.,  spot 

GermanCubef.o.b. 

French  Cube 

prompt 

Crvstalllaed,  West 
India 

Beet,    88%    f,o.b. 

Tak— par  lb.,  doty 

'/-  lb. 
Indlao  Peko« 
Brokeo    ,, 
Orange    „ 
Broken    ,, 
Pekoe    Souchong 
CeyloD  Peko«     , . 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoa  Souchong 

OoeoA  —  per  cwt. 

duty  6d.  per  lb. 
Trinidad — per  owi 
Grenada  . .  . . 
West  Africa..  .. 
Ceylon  Plantaiioi 
GiMyaquilAriba. 
Oofr«c — per  owt. 
duty  42/- per  cwt. 
Saal  India    ..     .. 

Jamaica 

Costa  Rica  .,  ,. 
Provliloni— 

Butttr,  per  cwi 
iLuxrrahan  finest 
Argentine  . .  . . 
IriitU  Creameries 
Dutch  ditto..  ,. 
Russian  flnest  .. 
Paris  baskets  ., 
Oauish  flnest  .. 
Brittany     rolls  — 

doz, lb 

Bacon — per  cwt, 

Irish      

Continental..  .. 
Canadian  . .  . . 
American  . ,  . . 
Hama— per  cwt, 

Irish       

Canadian  . .  . . 
Americao     ..    .. 

ObMM— per  cwt. 

Dutch 

Canadian  . .  . . 
English  Cheddar 
Wilts  loaf  . .  . . 
New  Zealand 

Rice— per  cwt. 

Japan     

Rangoon  2  stars  . . 

Bt|(B — per  120. 

English 

Irish      

Danish  ..     .,     .. 

BpelUr— 
G.O.B.  as  to  posi- 
tion     

Flour- per  sack. 

Country  Straight 

Rtins  ex  Mill . . 


2  13 
a  13 
2  6 
2    6 


nom. 
nom. 


269 
nom, 

.  d,  a.  d 

nom. 
nom. 
nom, 
nom, 
nom, 
nom. 
nom, 
nom. 
nc  m. 
nom. 


s.  d. 


-99  o 


37  0 

•i2  O 

62  6  -70  o 
79  0  -95  o 

II0/-Ii2/ 


£   «.    d. 


a  13  9 
«  13  9 
269 
269 


nom. 
nom. 


269 
nom. 

s.d.  s.  d 

nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom, 
nom. 
nom. 

d.  s.d 

J7  o-  98  o 
82  o-  94  o 

62  6-  70  o 
77  o-  95  o 
I03/-I10/ 


115  o  132  o 
790  151  0 
1I5  O  Ij9  0 


252/ 
252/ 

nom. 
nom. 
nom. 
nom. 
nom. 

nom. 


'72/ 

172/ 

'7'/-'72/ 

i7i/-ieo/ 

203/ 

162/-165/ 
J25/-165/ 

129/6-160/- 
nom. 
142; 
nom. 
nom. 

s.    d, 
nom. 
26    3 

34  0-36  o 

33  6-34  6 

nom. 


54  0-50  0 
44/3 


This 
Week, 


iio-o  135-0 
790  151-0 
iio-o  139-0 


252/ 
252/ 

nom, 
nom. 
noDi. 
nom 
nom 

nom. 


'72/ 

'72/ 
171/-172/ 
171/-180/ 

203/ 
162/- 165/ 
125/-165/ 

129/6-160/- 
nom. 

'42/ 

nom. 
nom. 

•.    d, 
nom, 
26    3 


34  6-36  6 
34  6-35  o 

nom. 


34  6-50  o 
44/3 


Wool — per  lb. 
Australian 

Scoured  Merino 
Scoured  Cr'ssbr'd 
Greasy  Merino 
Greasy  Crossbred 
New  Zealant^ 
(scoured)  Merino 
Greasy  Crossbred 
Cape  snow  white 

ladlarubborp.  lb 

Plantation,     Spot 

Crepe..    ,. 


Oeal— per  ton 

Durham,  best  .. 

Seconds        . .  . . 
East  Hartlepool.. 

.Seconds       ,.  .. 
Steams,  best 

Seconds       ..  .. 

Lead— per  ton. 
English  Pig..     .. 
Foreign  solt,  net 

Qulokill  var—  per 
bottle  firsthand 


Tin— per  ton 
English  Ingots 

Do.    bars 
Standard  cash    . . 
Tin  Plates, per  bos 
Oopper — per  ton. 
English,     Tougb. 

per  ton 
Best  Selected 
Sheets  ..  .. 
Standard  . . 
Jute— per  ton 
Native  firsts  for 
shipment 


Olli— 

Unseed,  per  ton.. 
Rape,  crude  . . . , 
Colt'nSeed,crudi 
Petroleum  Oil, pet 

Bibs, 
Water  White  . . 
Oil  Seeds, Linseed 
Calcutta— pel  ton 
Spot 
Rape    . .     • 


Iron — per  ton 
Cleveland  Cash  . . 

Tobaoeo  —  duty, 

unmanufactured 

7/4  to  8/0  per  lb. 

Maryland  &  Ohio. 

per  lb.  bond    .. 

.  irginialeat. 

iientucky  leaf    . . 

Latakia 

iavana 

ila 

;ars,   duty   10/6 
lb. 


lanill 


per  I 


Timber- 
Pitch    ■ 


_f-Wood. 
fine    ..    . 
Indian  Teak       . 

Turpentine- 
American  Spot  . 

Copra— per  ton 
Malabar       . .     . 

Ceyion 

F.M.S.  Singapore 
F.M.   Straits 


Last 
Week. 


i    «.  d- 

Dom. 
nom. 
nom. 
Dom. 

nom. 
nom. 
nom. 


nom. 
nom. 
nom. 
Dom. 
32  6 
39  6 

£    8.  d. 

nom. 


uom. 
nom. 
nom. 
nom. 

nom 
nom. 
aom. 


0  «  si 

nom. 
nom. 
aom. 
nom. 
^2  6 
29    6 

i    i.  d. 

nom. 
£29l-£28i 


f323-f325 

£324- f  326 

£320 


nom. 
£ti9-£i23 

£'49 
£110-1104 


£58 

\t 

'/74 
1/84 


29  15 

£29-io£30 


nom. 
08-2 
07-01 
a  o  -5    ( 
I  6  -6    « 

nom. 

2/  upds. 


J  00/ —  400, 
380/— 7001 

124/3 


46  o 
46  o 
45  "> 
45  10 


This 
Week. 


£323-£3*4 
£324-? 


3«5 


£3'6 
nom. 


nom, 
£iio-£i2J 

£'49 
£110-110) 


£58 
£66 
£60 


'/74 
I/Sj 


29  15    0 
£29-i<'£30 


nom. 
0  8— e    I 

0  7—0  II 
2  0 — 5    o 

1  6-6    6 
nom. 

2/  upde. 


300/— 400/ 
8*>/— 700/ 


I24'3 


46  o 
46  o 
45  'o 
45  'O 


good,  sold  at  95s,  ;  St.  Lucia,  good  to'  fine,  88s.  to  94s, ;  and  St. 
Thome,  superior,  93s.  Privately  Trinidad  realised  96s,  and 
Guayaquil  Ariba,  loos.  to  103s.  Cocoa  butter  steady,  with  sales 
at  2s.  per  lb. 

Spich. — Auctions  went  firmly  with  a  good  demand.  Bombay 
ginger  dearer  at  80s.  to  90s.  for  dark  to  small  rough  washed.  East 
India  mace  also  firmer  at  3s.  4d.  to  3s.  5d,  ;  and  West  India,, 
2s,  gd.  to  3s.  6d.  West  India  nutmegs,  66s  to  J3rs,  is.  rid.  to, 
3s.  i  and  Easterns.  8o's  to  95's,  as.  4d,  to  2s.  7d.  Private  market; 
for  pepper  ruled  firm.  Fair  Bladk  Singapore,  spot,  sold,  iS.  41*. ;. 
whits  ditto,  2S.  id.  ;  and  Muntok,  .2s.  ijd.  Tapioca  firm,  fair^ 
fiake,  K)ot,  sold,  8d.  per  lb, ;  and  medium  sieed  pearl,  yas.  6d.  per' 
cwt.    Pimento,  sold.  5jd.  to  sj^ipef  Ik.^^  '     ' 


**»!.  ->c   .*■*•' 


304 


Zhc  investors'  IReview, 


Mabch  ?3,  1918. 


Rice  in  good  support.  Coloured  beans  easier,  at  £37  53.,  ex 
wharf,  London. 

Shellac. — Business  is  practically  in  abeyance,  and  quotations 
nominal. 

Rubber. — Market  displayed  a  firm  tone,  though  movements 
were  somewhat  irregular.  A  fair  business  transpired,  including 
plantation  crepe,  spot,  and  March,  at  as.  6Jd.  to  2s.  6Jd.  and 
2s.  6d. ;  April-June,  2s.  yd.  to  2s.  7Jd.  and  2s.  6Jd. ;  July-Decem- 
ber, 23.  8d.  to  23.  8Jd.  and  23.  7Jd.  Ribbed  smoked  sheet,  spot, 
and  March,  2s.  6d.  to  23  6Jd.  and  2s.  jjd.  Fine  hard  Para,  spot, 
and  March-April,  2s.  8Jd      Soft  fine,  quoted,  2s.  jd.  per  lb. 

Corn  (Mark  Lane). —  The  volume  01  business  has  been  on  a  fair 
scale  in  a  few  cases,  but,  as  a  rule,  offers  continue  reserved  made, 
while  all-round  steadiness  still  characterises  the  market  tone. 
Wheat  :  Native  grain  remains  at  75s.  6d.  per  qr.  (504  lbs.). 
Imported,  No.  i  Northern  Manitoba  quoted  at  8is.  5d.,  and  No.  2 
at  80s.  Australian,  8js.  6d.;  and  Plate,  8is.9d.  Flour:  Imported 
sorts  have  met  a  fair  sale  at  49s.  gd.  to  51s.  3d.,  landed,  according 
to  quality,  with  more  doing  in  English  at  the  regulation  rates. 
Oats  :  Canadian  feed  and  American  white  clipped  No  2  have  been 
placed  at  63s.  6d,  and  6is.  6d.,  landed,  respectively.  English  quoted 
at  46s.  3d.  Maize  remains  out  of  ofier  and  nominal.  Barley  : 
English,  62s.  gd.  per  qr. 

Cotton  (from  our  Manchester  correspondent). — Prices  in  the 
market  during  the  past  week  have  continued  to  go  against  buyers. 
The  general  inquiry  has  been  considerable,  but  much  difficulty 
has  been  experienced  in  arranging  transactions.  The  conditions 
in  the  market  seem  to  become  more  abnormal  from  week  to  week. 
Production,  of  course,  is  now  very  restricted,  and  a  comparatively 
small  amount  of  fresh  business  is  sufficient  to  keep  spinners  and 
manufacturers  very  busy.  The  Government  has  decided  to  pur- 
chase the  Egyptian  cotton  crop  for  next  season,  and  it  is  believed 
that  in  this-  way  adequate  supplies  for  this  country  will  be 
assured.  An  irregular  trade  has  transpired  in  cloth  for  abroad. 
Very  few  bids  for  India  and  China  have  been  at  all  workable. 
Occasional  sales  have  been  put  through  in  light  fabrics  such  as 
mull  dhooties  for  Calcutta.  Some  business  has  been  about  in 
well-known  "chops"  for  Shanghai.  Operations  for  Java  and 
Singapore  have  not  been  quite  at  a  standstill.  Many  shippers  to 
Egypt  have  resisted  the  higher  figures  required  by  sellers.  Most 
nianufacturers  have  been  very  independent,  and  a  good  deal  of 
indifference  has  been  shown  as  to  whether  fresh  contracts  are 
booked  or  not.  Clearances  in  the  home  trade  have  again  been 
very  encouraging.  In  American  yarns  the  question  of  delivery  is 
isore  important  than  that  of  price,  and  many  users,  to  secure 
small  lots  to  be  sent  in  st  once,  have  been  prepared  to  pay  extra- 
ordinary rates.  The  strength  of  spinners  seems  to  be  greater 
than  ever.  In  Egyptian  yarns  prices  are  distinctly  dearer  on  the 
week,  and  a  substantial  trade  has  been  done.  Steady  buying  has 
been  reported  in  y^rns  suitable  for  Fiance. 


OILFIELDS     PRODUCTION. 

Anglo-Egyptian  Oilfields. — Past  week  :— Gemsah,  21  tons  (last 
21  tons);  Hurghada,  11,466  tons  (last  2,780  tons). 

Baku  Russian  Petroleum.— -62,475  poods  for  week  ended 
Feb.  2. 

Bibi  Eibat. — Crude  oil  from  this  company's  wells  for  week 
ended  Feb.  10  was  565  tons.  565  tons  of  crude  oil  for  week 
ended  February  17. 

Black  Sea  Amalgamated. — 333  tons  of  crude  oil  for  week 
ended  Feb.  16.     347  tons  of  crude  oil  for  week  ended  Feb.  2. 

British  Burmah  Petroleum. — Crude  oil  by  this  company  and 
the  jiangoon  Oil  Co.  amounted  to  72,207  barrels  for  month  of 
Feb. 

European  Oilfields. — 56,300  poods  for  week  ended  Jan.  27,  and 
57,300  poods  for  week  ended  Feb.  3.  Week  ended  Feb.  17, 
60,379  poods;  week  ended  March  2,   51,600  poods. 

Kansas-Oklahoma. — Total  from  own  wells  for  month  ended 
©ec.  31,  4,996  barrels;  total  oil  run  through  pipe  line  to  re- 
finery for  same  period,  50,750  barrels ;  total  from  own  wells  for 
month  ended  Jan.  31,  1918,  5,410  barrels;  total  oil  run  through 
pipe  line  to  refinery  for  same  period,  47,500  barrels. 

London  and  Maikop  Oil. — Plot  435a,  Well  3. — 14,700  poods 
for  week  ended  Feb.  9. 

Maikop  Combine. — 408  tons  of  crude  oil  for  week  ended 
Feb.   16.    403  tons  of  crude  oil  for  week  ended  Feb.  2. 

New  Schibaieff  Petroleum. — For  month  of  Dec.,  5,035  tons; 
nett,  2,821  tons.  For  month  of  Jan.,  5,260  tons;  nett,  2,912 
tons. 


BOOKS    RECEIVED. 


The  Mining  Manual  and  Mining  Year-Booh  jor  1918,  by 
Walter  R.  Skinner.  Price  17s.  6d.  nett.  Publishers,  Walter  R. 
Skinner,  11-12,  Clement's  Lane,  London,  E.C.  4,  and  Financial 
rtmts,  7a,  Coleman  Street,  London,  E.C.  2. 


Iron  in  Natal. — Natal  industrialists  are  seriously  considering 
t)ie  further  exploitation  of  the  iron  ore  occurrences  in  the 
vicinity  of  Pietermaritzburg.  A  small  blast  furnace  has  been 
in  existence  for  some  years  past  at  Sweetwaters,  and  the  «i- 
perience  gained  in  the  treatment  of  these  ores  should  serve  a 
useful  purpose  now  that;  a  revival  of  interest  in  Ibe  !«» 
industry  has  taken  place.  -  :.  .-  .«■,,.   . 


Abridged. 
Thf  List  of  Applications    will   be  Closed  on   or    before 
WEDNESDAY,  27th  March,   1918. 

IsHue    of    JS1,000,000 

PORT    OF    LONDON    51%  INSCRIBE!! 
STOCK,    1925    1933. 

Price  of  Issue,  £99  lOs.  per  cent. 

Interest  payal;)le  1st  March  and   1st  September.     A  Payment  of 

£1  per  cent.,  representing  Interest  on  instalments  will  be  made 

on   the   2nd  September,  1918. 

Principal  repayable  at  par  on  the  1st  March,   1933,  the  Port  of 

London  Authority  having  the  option  of  redemption,  in  whole  or 

in    part,    at   par,   on   or  after   1st   March,   1923,   on  giving   six 

months'  notice. 

THE  LONDON  COUNTY  AND  ISTESTMINSTER 
BANK,  lilMITED  are  authorised  to  receive  subscriptions 
for  the  above-mentioned  amount  of  Stock. 

The  Stock  now  offered  will  rank  as  to  security /aW /"assa  with  the 
5j  per  cent.  Inscribed  Stock,  the  4  per  cent.  Inscribed  Stock,  the 
3j  per  cent.  Inscribed  Stock,  and  the  "  B  "  Port  Stock  already 
issued,  and  will  be  inscribed  in  the  books  of  the  Stock  to  be  kept 
by  the  London  County  and  Westminster  Ba.sk,  Limited. 
Lothbury,  London,  EC.  2,  and  will  be  transferable  without  charge 
and  free  of  stamp  duty  at  that  Bank.  All  the  above  Stocks  and 
that  now  offered  rank  as  to  security  immediately  after  the 
;f9,379,752  "  A  "  Port  Stock. 

The  Treasury  has  been  consulted  and  raises  no  objection  to  this 
Issue. 

Payment  will  be  required  as  follows,  viz. : — 
£5      per  oent.  on  Application. 
£14  10s.        „         „    8th  April,  1918. 
£30  „         „    17th  June,  1918. 

£50  „    gth  August,  1918. 

£99  10s. 


Payment  may  be  made  in  full  on  the  8th  April,  1918,  or  on 

any  subsequent  day,  under  discount  at  the  rate  of  4  per  cent, 
per  annum. 

The  net  revenue  of  the  Authority  for  the  financial  year  ended 
31st  March,  1917,  was  /■2, 020,936,  which,  after  paying  all  charges 
including  interest  on  Stock  and  making  full  provision  lor 
maintenance  and  Sinking  Funds  in  accordance  with  the  Port  of 
London  Acts,  enabled  the  Authority  to  carry  forward  ^340,400  as 
compared  with  ;f232,ooo  brought  into  the  account  from  the 
previous  year. 

The  Authority's  Reserve  Fund  now  stands  at  over  ^^600,000. 

Copies  of  the  Prospectus  and  Forms  of  Application   can   be 
obtained    at    the    London     Codnty    and     Westminster    Bank 
Limited,  41,  Lothbury,  E.C.  2,  21,  Lombard  Street,  E.C.  3,  or  at 
any  of  the  Branches  of  the  Bank,  at  the  Ulster  Bank  Limited, 
Belfast,  and  Branches  of  that  Bank,  of  Messrs.  R.  NivisoN  &  Co., 
Bank  Buildings,  Princes  Street,  EC.  2,  and  Messrs.  Jambs  Capei. 
AND  Co.,  Basildon  House,  Moorgate  Street,  E.C  2. 
LONDON   COUNTY   AND   WESTMINSTER 
BANK   LIMITED, 
41,  Lothbury,  London,  EC.  2. 


No. ,( 


This  form  may  be  used. 
FORM  OF  APPLICATION  for 

PORT  OF  LONDON  5f%  INSCRIBED  STOCK, 
1923-1933. 


ISSUE  OF  ;^i,ooo,ooo. 

To  th*  LONDON  COUNTY    AND    WESTMINSTER    BANK 
LIMITED. 
Gentlemen, 

;^hereby  apply  for  / 

say 

of  Port  of  London  5f%  Inscribed  Stock,  according  to  the  Pro- 
spectus dated  22nd  March.  1918,  and  undertake  to  pay  ^99  los. 
for  every  /loo  of  Stock,  and  to  accept  the  same  or  any  less  amount 

that  may  be  allotted  to  — '-  and  to  pay  for  the  same  in  conformity 

with  the  terms  of  the  said  Prospectus. 

^jn-enclose  the  required  deposit  of  £ 


being  £$  per  centum  on  the  nominal  amount  applied  for. 
Name- 


{Ur.,  lirs.,  iftul 


Address 


-March,  rgiS. 


NJi. — Applicatioiu  mutt   be  for  even   ImiKlreds  of  Stock,  m 
BiUft  be  ficcpmpiuiied   by  the  amount  pf  Depssit  thereon. 


March  23,  1918. 


XTbe  Jnvestots'  IRevtew. 


305 


FEBRUARY     RUBBER    OUTPUTS. 


Cwnpany. 


-Abojroe  Clyde 
Attagar 
AlHance 
Alor    Pongsu 
Aiapat 

^tf^o-Java  . , 
-Anglo  -  J  ohore 
Al^Io  •  Malay 
Aogjo-Sum.. , 
Asuian 
As.  T.Ceylon 
Aver  Kunnig  . 
Bag  an  Sarai . .  f 

Bab  Lias 

Baioe  Kidoel. 
Bakai> 
Bambrakelly . 

iBandar   Siyn. 
Qandjarsarie  . 
Banaarapola  . 
Bantardawa. . 
Bantam 
Bameng 
3a(ak  Habit.. 
Satong  Mai.. 
iBatu  Caves  . . 
,,     Matang . 
„     Rata     . . 
,1    Tiga     . , 
©e'uf'rlB'rn'o 
eeksh 

Beranang     . . 
'Bemam-Per'k 
ftdor.. 
mkam 
Sodfl  . . 
Bradwall 
3raunston 
Srit  BornPara 
Britlsta  Malay 
Brook  lands  . 
Broome 
Bruas-Perak 
Bukil  Cloh  . 
M     Ijok    .. 
„     Kajang 
„     Lintang 
M     Mert'jm 
„     Panj'ng 
,,     Rajah.  . 
„    Semba.. 
Carey  United 
Castlefield   .. 
Cent.  Trav... 
Ceylon     Para 
•Ceylon  T.dER. 
Chanekat-Sal. 
flhemb  Malay 
Vfaeras  . .     , . 
Cberconese  . . 
Ohevlot . .     . . 
Cblmpul 
Cbote    ..     .. 
.  CliEly    ..     . 
Cluny     . .     . . 
Coos.     Malay 
Dalkeith       ..I 
{^amansara. . 
Bangan.. 
Dennistown. . 
peviturai 
Dimbuia 
Ojasinga 
Ojember 
Doranakande. 
Duff  Develop. 
Dusun  Durian 
S.Ind.&Cey. 
Cdinburgh   . . 
Elphil    ..     .. 
fiinerald 
Bdv^  Seng 
fiscot      . .     . . 
Fed.  Malay  S. 
ped.  Selangor 
Calaha  , 
Galang  Besar 
Can  Kee      . 
Caring  . .     . 
Cedong . .     . 
Cen.  Ceylon 
Glen  Bervie,. 
Olendon.. 
Glenshiel 
■Golconda 
Golden  Hope 
Grand  Cent., 
Gula   Kal'p'g 
Harpenden  .. 
Ilayoep..     .. 
Heawood 
Hewagam    . . 
Hid.  Streams 
Highlands 
Inch-Kenneth 
lasulinde 
Java  Amal 
Ja\  a  R  «i  Prod 
lava  Para 
jeraoj    . . 
Johore  Para 

„  Rub.  Lds 
Jong  Landi 
Jugra  Estate 
Jugra  Land  .. 
Jtiru  Estates.. 
Xajang  . .  . . 
Kali  Glagah.. 
Kamp  Kua't'n 
Xaa&uning  . . 
KailMr  Para  . . 
K»ak  ..  .. 
KatinMe 


Current 
Estimate 


444,374a 
338,tooa 
208,3940 
276,41211 
180,000 

2,525.395" 
300,000 

1,720,000 
940,oco 
550, coo 
255,000 
821,071a 

413,182a 


LastAll- 
in  Cost. 


Feb., 
lbs. 


(  +  )or(-) 
lbs. 


454.000 
285,000 
235.0)0 

440,000 
243,019a 
265,6oon 
340,000 
915, coo 
434.000 
440,oco 
318,122a 
777,995'i 
185,000 
49f,03OA 

236,00-fl 

540,000 

325,000 

300,000 

419,5000 

372,032 

264,930a 

442.142a 

500,000 

220,003 

718,388a 

620,000 

450,000 

103,106 

229,000a 

304,500a 

940,000 

280,000 

932,000 

536,gooa 

1,071,000 
751,860a 
450,000 
680,000 
230,275a 

1,055,584a 
235,031a 

1,013, OOOrt 

457,102a 
284,3oca 
68g,659a 
591,440a 
250,000 
228,5I=C 
400,000 
244,892a 
917.590a 
475,01:0 
847,203a 
225,000 
58 -,6710 
345,670" 
282,858a 
433,554a 
266,700a 
205,597" 
804,470a 
790,3710 
210,000 
447.550a 
252,000 
565,700a 
I72,450rt 
244,520a 
1,845,000a 
370, coo 

125,5831 
450,000 

20O,C0O 


277,508a 

l,o!i5 ,000a 
300,000 
275,000 
488,940a 
596,104a 
352,oa5a 

4,759.405a 

1,066,000 
511,107a 
512,405a 
275,000 
646,200a 
242,73Qa 

1,426,518a 
440,000 
330,coo 
315,000a 
620,030 
265,692a 
300,000 
190,362a 

1,147,348a 
680,000 
378.613 

1,398,000 

200,(XX) 

39i,cooa 
250,cx)o 
362,500a 
810,000 
1,075,138, 
241,019a 
582,6730 


1/0.50 
1/1.62 

1/0.75 
■/■^5 

1/320 

/II.23 
/loi 

1/326 

1/0.34 
/I1.82 
1/9.46 
I/6.8I 

1/4"^ 


1/2.48 


I/I.65 

■/'•37 
1/1.64 
1/3 
/9I3 

I/1.50 
1/0.25 
1/5-75 

1/2J5 

1/1.83 
1/3.62 
1/5.22 
1/2.58 
/11.80 

'/!_ 

1/2.5 

1/442 

1/6.47 

1/0.38 

1/1-57 

1/2  .73 
/10.74 

1/045 
/11.20 

'/317 
1/0.07 

■/2  34 

1/4-31 
1/0.47 

1/1-37 
1/5-39 

/10.58 
1/3-24 

1/6-9 

/1 1-44 
1/2.54 

1/4-78 
/11.05 


t/l  9c 
/10.36 
>/7-39 

1/4-47 
1/7.40 
/10-71 

1/1. J5 

/9-14 
1/5  88 

''L 

1/2.32 

1/9.50 
/11.68 


t/5-38 
I/I. 75 
1/1.27 


1/2.18 
/11.36 
1/1.41 
1/0.72 
/llj 
/11.49 

1/1.5 
1/2.80 

l/O-OI 

1/3.71 
1/0.39 


i/i.ao 

1/2.14 
«/3_l 

1/0.60 
/10.02 
1/1.88 
1/1.95 

1/2.07 

I/I-49 
/10.91 

i/»-3« 


•44,287 

18,800 
1,720 

21,812 

16,570 
212,415 

27,013 
10-1,455 

50,086 

38,792 

23,500 

57,600 

26,500 

51,031 

58,000 

14,700 

20,604 

37,582 

20,460 
2,300 

21,370 

57.059 

30,070 

25,000 
♦26,807 

41,752 

15,058 

4 1, ceo 

58,000 

15,000 
•30,882 

18,161 

22,757 

26,100 

24,800 

8,805  ;— 
42,040  \+ 
41.250  \+ 

67,000  1  + 

52,547  ;  + 

34.265  l-l- 

11.567 

33.000 

30.500 

50.544 

18,000 

63,323 

48,737 

92,629 

64,015 

33,977 
35.672 


44.674 
17.292 
51,000 
26,849 
21,500 
42,277 
32,000 
18,957 
13,064 
31.516 
18,908 
60,100 
34.500 
54.961 
23.235 
38,000 
46,030 
17,500 
40,000 
30,000 
9,600 
74,000 
79.017 
12,741 
30,000 
16,644 
39.000 
II. 100 
17.000 
141,000 
36,687 

•7,825 
32,810 
11,340 
22, 000 
23,940 
69,480 
27,430 
16,313 
32,960 
47,222 
30,941 

274,765 
97,000 
21,000 
41,650 
19,874 
2j,7oo 
19.500. 
98.543 
31.940 
21,100 
65,000 
32,000 
49,«79 
32,700 
18,000 

116,900 

48.494 
38,722 

112.339 
9,000 
29,810 
'9.450 
30,000 
56,520 
•13.835 
16,722 
♦4.000 


11.330 
9,200 
1,236 

2,987 

260 

24,915 

2,858 

24,434 

21,828 

5,398 

4.772 

12.530 

3.827 
32.717 
28.837 

4.300 

1,211 

8.447 
2,525 
17,2co 

7.230 
10,370 

2,04 

5,823 
',342 

22,092 
1,624 
4,010 
6,200 

4.800 
4.996 

6.327 

537 

11.650 

6,500 

12,095 

5.780 

2.950 

4.5CO 

28,154 

3,986 

6,366 

4,944 

14  000 

7,000 

22,047 

3,030 

9.614 

5  7  37 

2,114 

12,315 

9,009 

9.984 


4-         825 

+      4.599 

—  29,000 

—  6,745 
■(■      1.500 

—  2,258 

—  16,150 

—  1,743 

—  4,187 
+      1,929 

—  859 

—  840 
■t-      9.500 

—  11.539 
-I-    11,087 

7,129 

21.430 

4.265 

314 

10,300 

700 

11,500 

17.758 

4.114 
9,000 

■  1.528 
7.500 

-  2.240 

■  3,300  I 
6,000 
2,800 
3,016 
4,190 

-  2,842 
8,000 
3,619 

20,419 
9.271 
9.777 

■  6,310 
6,643 
8,341 

79,738 

11,0C0 

■  24,847 
9,642 

1,835 

4.700 

■  2,000 
59 

■  5,560 
500 

7,000 
3,100 

12,158 

12,405 
3,000 

32,837 
6,978 
6,724 

11,566 
2,000 
9,120 
2.350 
1. 000 

—  29.IOO 
+  «3.i6j 

-  i.«34 
+        778 


Aggregate 
lbs. 


320.591 
43.300 
16.646 
48,397 
92,120 
421,483 
278,442 
248,656 
630,509 
277,046 
200,890 
132,6.0 
59,000 
219,975 
398,000 
141,300 
222,028 

278,372 

41,420 

23,300 

213,884 

601,926 

356,310 

252,248 

26,807 

87,497 

132,732 

370,630 

128,500 

l6S,000 

281,967 
219,288 
178,907 
427,700 

56,500 
22,493 

97.423 

226,356 

174,830 

157,5co 
456,048 
273,847 
114.'73 
69,000 
63,500 
653.492 
173,120 
7>i3,566 
102,537 
915,389 

199.525 
391,007 

18,077 
140,623 

42,928 
151,000 

67.907 

53.500 
108,161 

92,o5o 
l8l,-93 

30,045 
377.291 

39.431 
168,230 

80,000 
126,771 
205,235 
90,500 
88,230 
38,500 
374.000 
61, coo 
28,800 
139.550 
158,826 
33,006 
68,000 
39,404 
39,000 
26,750 

87,800 

1,496,000 

3^0,334 
7.825 

322.840 
117,015 

109,226 
102,443 
163,390 
137,904 

109,226 
79,440 
97,402 
67,713 

746,668 

217,000 

53,850 

84,026 

48,770 
86,700 

39,000 
222,239 

363,180 

132,000 
65,602 

97,221 

244,839 

141,100 

233.832 
433.062 

387.476 

1,084,429 
159,200 

69,130 

aoi.937 
6a,ooo 
599.220 
232,393 
37,139 
87,000 


(  +  )or(-) 
lbs. 


61.196 

17,000 

3.244 

4.357 

4,120 

43.783 

3S,68o 

23,501 

84,376 

15.044 

28,498 

9.171 

9.047 

152.241 

176,602 

65,800 

1,129 

45.978 

3.365 

13.700 

28,186 

70,154 
28,61a 

9,964 

1.342 

51,473 

19.271 

28,320 

8,2C0 
32.8ro 
15.7?9 
18.141 
13.393 
44.950 

3.2CO 

15.407 

30,806 
28,056 

47.030 
79,380 
53.727 
9.259 

6l,i93 

26,500 
15,500 
9,642 
16,030 
82,004 
26,537 
56,882 

59,840 
6.520 
1.643 

XI. oil 

6,278 

4,000 
2.512 
13,000 

5,148 

9,290 
21,197 

6.292 
44.090 

1.S36 
58.618 

26,500 
14,882 
59,673 
11,864 
29,080 

6,275 
134,732 

21,6:0 
2,400 

19,550 
21,388 

10,334 

9,oco 
952 

7,500 
2515 

8,020 
65,003 
42,8  9 

3,016 
26, 590 

1,621 
34.126 
2l.88t 
48,658 
36,383 

8,076 

1,870 
16,526 
18,054 
15S155 
23,220 
45.577 
11,621 

4.452 
23  400 

3.900 

7.2tO 

23,790 

I2,U0O 

7,900 

19,160 

616 

16,268 

86,820 

22,196 

6,724 

90,876 

13,084 

4,490 

27,937 

3,oco 

58,84a 

47.336 

1,198 

4.703 


Kawie  Java 
Kepitlgalla 
Kepong    . 
Kerala    , , 
KbotaTamp'n 
Killinghall    . 
Kitnanis 
KintaKellas.. 
Klabang. . 
Klanang 
Kombok 
Kuala     Klang 
,,      Kubu 


Lnmpur  1,700,000 


„      Nal 
„     Pahi 
,,  Selangor 

Kurau    . . 

^atiu 

Lanadron 

Langat   River 

Langea,  Java 

Lakiikat  Sum 

L'uk'n  N.Br. 

Ledbury 

Lendu   . . 

Linggi    .. 

Lochnagar   . . 

Lon.  Asiatic. . 

Luraut   . . 

Madtngley 

Maiedie. 

Mabawale 

Malacca 

Malayalam 

Malaysia 

MaTaTPrnt'rs 

Manch'rN.B 

Mamliakut    , , 

MergutCrown 

Mernnau 

Monerakelle  . 

Mount  Aostin 

Nagolle..  .. 
^arborou^h.. 
Neboda  Cey. . 
N'wCroc.Riv. 
Nordanal 
N.  Borneo  St. 
N.  Hunamock 
N.  Labis      .. 

Oriental 
Padangjawa 
Panawatte    . . 
Panagula 
Pantiya  . .     . . 
Parambe 
Pataling 
Pegoh    . .     . . 
Pelmadulla  . . 
Perak     . .     . . 
Permas  . .     . . 
Pilmoor. .     . . 
Port    Dickson 
P.P.K 


yxi,ooo 
640,000 
334.500.1 
250,000 
237,000a 
344,000 
390,000a 
610,000 
301,412a 
502, 019a 
594.000 
200,000 
138,950 


187,800a 
200,000 
630,994a 
283,300a 

762,000 
1.401.3731 

773.710a 

520,000 

290,000 

691,4960 

225,000 

2,525,020a 
160,000 

1,560,192a 

198,003 

170,243 
320,000 

4,043,800a 

l,354.'79a 
400,000 
337,366a 
616,000 
488,000* 
545,000 

1,470,2360 
155,000 

2,200,003 


1/3.30 

1/9.22 

1/4.30 
1/1.03 
/11.88 
/I0.80 

1/2-34 

I/2J6 

/9~3 

/11-75 
/11-80 
1/4-05 

1/2-93 
1/4-23 
1/34 

/■I-74 

1/0-30 

1/2.24 
/1I-54 

1/2-52 
1/11-62 

1/2- u 
>A-6? 
lft-48 
1/3-03 

1/3 


1/632 

1/4-3 


573,750a 

l/j-43 

278,100a 

1/5.8 

460,000 



625,030a 



624,364 

I/I.79 

213,500a 



750,000 

l/r.41 

350,000 

1/7-05 

Preanger 
PiTe       . .     . 

Rani  Travan 
Ratanui..  . 
Rangoon  Para 
Rembia  . .  . . 
Ribu  . .  . . 
Rim  . .  . . 
Riverside  , . 
Rubana  . .  . . 
R,  Es.  Ceylon 
R.  Es.  Johore 
R.  Es.  Krian.. 
Rubber  Trust 

Sagga 

Sampang  Java 

Sapong  . . 

Sapulm'k'nde 

St.  George   . . 

Scot.  Malay. . 

Seeiield..     .. 

Seaport..     .. 

Sedenak 

Segamat 

Sekong  . .     . . 

Setaba  . .     . . 

Selangor 
„         Eiv 
Utd 

Seletar  . .     . . 

Sfmbilan 

Sempah..     .. 

Sendayan      . . 

Sengat    . .     . . 

Sennah  . .     . . 

Serdang  Cent. 

Seremban     . . 

Shelford 

Siak        . .     . . 

Sialang  . .     , . 

Sing.  Para   . . 
„       United 

Straits  Rub.. . 

S.S.  Bertam  - 
Strathmore  . . 

SumatraCons. 
„  Para 
„       Prop. 

Sun|[el  Bahru 
..  Batu  . 
.,  Baaya 
„  Buloh 
„  Choh  . 
,,  Kapar. 
„  Kari.. 
,,  Krian. 
,,  Kruit 
„  Mt'ng 
,,  Purun. 
„  Salak. 
,,  Sip ut . 
,.  Way.. 
Sung.Chumor 
SunnygvQu. 


716,4500 

219,0240 

617,2090 

331.346a 

206, 100 

253,842a 

729,623a 

600,000 

813,1970 

530,000 

353.500a 

700,000 

348,2280 

329,242a 

310,000 

929,9311 

264,0000 

360,860a 

455,000 

296,8730 

400,000 

372,0000 

850,0000 

472,034a 

677,211a 

465,500a 

520,413a 

502,500a 
136,300a 
338,000a 
305,4272 
533.471a 
614,0000 
1,040,515a 
435,000 
350,913a 
450,000 
162,153 
665,000 
828,093a 
635,313a 

220,0C0 
210,000 
551.200 
325,000 

515,000 

i,7co,coo 

355.535a 
974.750a 

278,3260 
268,717a 
1,386,644a 
675,000 
515,000 
2,890,912a 
1,350,000 
436,000 
680,000 
729,0000 
235,600 
362,000 
286,150a 
501,0100 
615,0000 

352,9650 

844,700a 
360,000 
618,492a 

439.700a 
304,1130 
307,9930 

727,300* 
190,000 

365,3720 

5(o,oae 
984,620a 


1/3.30 

1/5-807 

/10.13 


/1 1.38 
1/5-3 
1/1.4I 
1/4-85 
/11.89 


1/2.82 

1/6 

1/0.38 

1/723 

/10.50 
/1I-59 
I/I  52 

1/1-185 
1/8-8 
1/2-75 
/9-52 
/9-91 
1/3-17 

l/4i 

1/1.61 
1/0.80 
1/3^8 

/loi 
/11-52 

1/1-76 
1/1-77 
1/0.84 
/11.22 
1/0.89 
/9.18 
/11-85 
1/136 
1/4-12 

'/3-50 
1/2-62 

/10-73 
1/2.85 

/lft.069 

/I0.32 

1/0.5 

/11.80 

1/424 

i/o.»7 

1/ 

I/O. 18 

1/144 


46.<«> 
45.140 
25.000 

"23,68a 
15,000 
22,383 
32,700 
44,480 
22,078 
42,769 
33.300 
11,888 
io,8fo 

142,560 
23,000 
25.000 
51.363 
22,300 

48,500 

120,835 
32,189 
63,000 
40,200 

♦10,000 
39.827 
17,000 

160,053 
15.174 

111,881 
78,800 

16,577 

15,078 

11,956 

262,000 

29,366 

27,000 
47.009 
28,000 
44,000 

141,065 
17,400 

192,800 

39,065 
21,000 
21,135 
56,775 
56,967 
13,700 
55,586 
34,133 
42,000 
11,368 
31.799 
13,113 
13,200 
9.725 
42.377 
48,689 
57,299 
33.174 
18,499 
34,056 
39,830 
20,411 
26,822 
13.500 


■^ 

\'M 

— 

1,000 

+ 

1,682 

— 

250 

— 

2,627 

+ 

4,700 

— 

4.945 

— 

2.767 

-(- 

7,183 

— 

13,920 

— 

3.512 

— 

2.957 

-1- 

9,900 

-H 

4,0:0 

-1- 

9,682 

— 

2.252 

— 

1,200 

— 

14,890 

■f 

4.488 

-t- 

7.905 

^■ 

11,000 

-H 

5,820 

— 

14,927 

-1- 

1,000 

29,380 

■1- 

3,416 

— 

12,718 

— 

5,200 
1,260 

-1- 

3,614 

4- 

6,362 
4«,930 

5,014 
1,300 

+ 

11,248 

I 

4- 

7.500 

1 

+ 

26,615 

f 

2,661 

■(- 

59.160 

1 

20,100 

2 

4,000 

8 

17.775 
9.380 
2.663 
5.foo 

2 
2 
2 
2 

2.543 
12.741 

8 
8 

— 

♦93,200 

— 

20,405 

1/5-24 

23,000 

— 

29,202 

48.690 

20,910 

1/3-20 

30,400 

/1I-57 

29.500 

1/0.64 

77.000 

— 

25.143 

1/0.90 

32,300 

1/627 

22,500 

1/6.10 

61,179 

—  11,190 

-  7.636 
-I-  14.977 
+  3.551 
+  3.572 

—  4.373 

-  9.179 
+  7,850 
■H  32,267 

—  11,609 

-  2531 
¥  4,901 

—  8,450 
-t-  11,952 
■t-  355 
<■  1,950 

+  14,856 

-  2,813 
4-  3,2  o 
+  2,134 

—  2,020 
4-  3,100 

-  3,500 

4-  23,721 

4-  1.316 

-  4,874 

—  1 1. (XX) 

f  32,264 


483.437 
557.683 

58,000 
33,682 
15,000 
209,122 
70,700 

516,794 
50,441 
91.327 

60,000 

76,588 

97,355 
1,243.410 

45.000 

46,883 
I08,«59 

30,300 
148,500 
232,904 

68,701 
373,710 

90,000 
138,600 

92,431 
194,139 
398,733 

27,408 
250  059 
968,900 

199.73' 

104,797 

41,597 

638,900 

74,627 
I49,2t8 
497,210 
127,(XX) 

517,507 

301,763 

147,841 

2,025,807 

88,733 
202,000 
70,385 
117,850 
1 10,060 
27,200 
487,100 
254,427 
100,000 
235,562 
'7.504 
41.369 
28,200 
36,452 
88,8j2 

133,482 
502,705 
i6S,2l8 
269,440 
636,410 
52,993 

234,220 


■I- 

H.7» 

— 

'3,oi7 

4- 

5,000 

-1- 

i.6»2 

— 

250 

— 

6.995 

-f 

10,700 

4- 

47,2*5 

— 

3,oS4 

4- 

iS,ik2 

— 

9,6}o 

— 

9,816 

— 

9.5*5 
128,700 

4- 

4- 

.?;?«1 

4- 

— 

678 

— 

1.853 

4- 

38,430 

4- 

10,372 

4- 

20,434 

4- 
+ 

61.290 
20,460 

I 

93,200 

5 

119,202 

2 

66,300 

5 

181, -'89 

2 

52.363 

11 

378,000 

2 

65,100 

10 

704,204 

2 

39.152 

2 

103,700 

2 

54,700 

2 

132,264 

32,000 
16,109 
27,500 
13,293 

30,404 

4^,000 
67.240 
30,077 
57,877 
36.730 
'10,876 
30,854 
62,056 
62,557 
22,180 
14,040 
33.9''4 
14,866 
21,195 
35,600 
147,139 
27,003 
73,840 
26,712 
20,484 
107,274 
34,511 
41,000 
2i6,cxxi 
-75,50* 
29.766 
61,000 
76,000 
20,000 
23-975 
24,500 
44.920 
48,500 
46,170 
85,600 
21,020 
4'i436 
14,800 
24,739 
19.587 
40.800 
15.642 
37.742 
42,0a) 
J',43« 


—    5,000 

7 

311,000 

4- 

4-      2,889 

t 

36,388 

4- 

-t-           68 

2 

50,500 

4- 

4-    12,820 

2 

58,261 

4- 

4-    22,786 

2 

86,035 

4- 

—     4,000 

2 

96,000 



-   15,225 

2 

157.804 

— 

—   11,192 

8 

299.753 

4- 

4-    16,963 

4 

217.920 

4- 

4-      1,215 

2 

73.930 

4- 

—     2,624 

b 

89,552 

4- 

4-         685 

2 

106, 102 

—     6,737 

2 

137,871 

_ 

-     ^943 

2 

132,839 

— 

f      6,270 

11 

219,090 

4- 

—        280 

7 

124,320 

—     5,301 

7 

303,066 

4- 

—     8,130 

11 

!j29,649 

—      4,965 

5 

220,795 

4- 

4*         100 

8 

556,957 

4- 

4-    26,212 

8 

I, 168,607 

4- 

-     1.732 

2 

61,303 

4- 

*■      6,408 

2 

180,254 

4- 

1-      4,234 

2 

55,751 

4- 

-     2,159 

2 

42,143 

— 

—     2,924 

I 

107,274 

— 

—  20,760 

8 

401,160 

4- 

4-      6,500 

V 

— 

—  21,088 

2 

451,0:0 

— 

4-    11,500 

11 

-     7,777 

2 

61,309 

— 

—     8,000 

10 

590,4  0 

4- 

4-     7.260 

8 

637,610 

4- 

4-      2,000 

10 

314,880 

4- 

4-      2.774 

8 

223,661 

4- 

4-      2,013 

3 

3«,ooo 
383.960 

4- 

—        310 

7 

4- 

—     6,000 

2 

100,500 

-. 

*      4,740 

2 

99,148 

4- 

4-    13,200 

2 

150,600 

^ 

—     9,080 

8 

237.060 

4- 

—  11,000 

2 

87.936 

— 

f      1,420 

2 

590.400 

4- 

—       333 

1 

52.534 

■+ 

-    3,996 

2 

49.236 

+ 

—  14,800 

3 

110,900 

4- 

1  .i,^i 

8 

132,906 

4- 

2 

»3,37« 

— 

-    tjcma 

s 

3J»)024 

*— 

-        »33 

2 

IJI,77« 

-~ 

27,174 
7,861 

6li 

3,767 

9,058 

18,900 

25,085 

9,625 

11,957 

27,550 

24,689 

56 

24 

159,985 

10,000 

73324 

62,765 

17,620 

772,723 

31,968 

30.5  o 

16,240 

13,395 

696 

14,300 

38,363 

110,506 

11,059 
31,799 
29,200 

9059 
5  464 

2,265 
19,464 


4-  33,523 

4-  18,266 

—  13,931 
4-  29.305 
4-  173,660 
4-  24,372 

—  14,0:0 

4-  14,856 

—  10,562 
4-  9, coo 
4-  14.779 

—  7,126 
4-  129,700 

—  2,100 
4-  124,046 
4-  4,329 

—  S.072 
4-  16,800 
4-  70,600 

9,000 
e,o88 
4.0:0 

25.048 
32,816 

4,000 

9,318 
14,109 
48,180 

12,615 
4,006 
2,011 

13,765 
3,261 
63,920 

90 
9,052 
27,638 
54,645 
59,657 

4-  135,366 
6,359 
49,629 
io,73< 
3.185 
2,924 
26,277 

—    £3,846 

i7,9fo 
78,170 
144.980 
70,760 
36,149 
8,996 
66,1.0. 
11,800 
13-388 
2,100 
8,250 

20. 436 
1,890 
1,852 
5.7B0 
8,300 

18,133 
3,821 

«o« 


^be  Jnveetors'  TReview. 


March  23,  191S. 


TalplDg.. 
T»l!Ay«r 
Tamlaog 
TaagK*   Balu 
Tanickab 
Tanj.   Malim 
Tandjong     . 
Tango«l 
Tebrau  . .     . 
T^iekoy  . .     . 
Telogoredjo 
TenomB'cneo 
Third  Mile  . 
Tramelbye  . 
Trolak  ..     . 
Ulu  Rantau. . 
U.  SiwSetmig 
V.  Serdang  . . 
V.  Siunalra.. 
V.  Tamiang.. 
Uva       ..     .. 
Vild'Or       .. 
VletarU 
Windior 
Waodaod     . . 
Yam  S«g    ■  ■ 
Yatlyaatoia  . . 


700,000 
1,060,000 

17a, 569a 
530,000 

1,400,000 

ii395.ooo 
308,000 

1,046,480 
250,000 
8}4,o2oa 
3go,8ooa 
190,833" 
750,000 
35a,040« 
9R3,o6$o 
930,7240 

3.395.000 
991,700a 
8oj,o«o 
lg5,692a 
360,000 
250,000 
404,*ooa 
236,77»» 

520,8230 


/I0.29 

^:fS 

i/o.tj 

77,»89 

'/3'39 

11,101 

■  /««• 

43. '3« 

1/3-30 

122,760 

1/3.18 

94.^43 

i/>i 

34,210 

1/10.70 

74,893 

1/3" 

•l8,»30 

83,000 

/It. 98 

58,200 

22,800 

1/054 

63,000 

./«l 

a9.5i« 

1/1.16 

22,3'4 

i/iJJ 

35,764 

1/396 

225. "4 

1/073 

79.73" 

i/5-*o 

43.540 

19.419 

— 

17,  too 

1/4-49 

16,700 

1/4-10 

3i,roo 

6,294 

36,069 

20,272 


10,678 
15.300 

18,328 

3  309 
11,209 

3.960 
9. '40 
7.41» 
20,165 
6,619 
22,000 
13,200 
9,284 
8,300 

—  2.078 

—  94« 

—  43  .OM 

—  3«.674 
+      6.790 

—  3.5» 
f      6,458 

—  6,6co 

+  J,30o 

+  953 

+  1.999 

+  1,748 

+  2,875 


«8j,307  |  — 
8i9,«97  I  — 
363,33'  I  + 

28930 
33', 199 
1,016,730 
661,268 
218,695 
517,630 
I74,5t6 
164,000 
106,000 

17.300 
461,100 
I45,»38 

49.905 
IS3.310 
1,545,013 
172,870 
464,«30 

37,  66 

92,030 
192,100 

68,900 

2S788 
146,753 

68,953 


S3,26» 
32,3*4 
82,961 
1.'4] 
54,655 

233,620 
•3.060 
41,623 

I45,9«« 
7.49!' 
38,400 

4,900 
29,46s 
26,300 
2,630 
6,I3J 
a4.7a7 
170,059 
19,030 
186,70a 
10,291 
26.o;o 
80,900 

4,173 
6,7«3 
11,494 
14.136 


COMPANY    RESULTS    IN     BRIEF. 


Name  and 

Accounting 

Period. 


Gross 
Profit. 


a  La»t  year's  crop. 


•  For  January,  or  previous  month. 


DIVIDENDS     ANNOUNCED. 

Ashanti  Goldfields  Corporation.— No.  37  of  20  per  cent. 
(9  3-5d.  per  share),  payable,  less  tax,  on  April  25.  A  year  ago 
25  per  cent. 

Banca  Commerciale  Italiana.— 9  per  cent,  {i.e.,  lire  45  per 
share)  for  1917,  against  7  per  cent-  (lire  35)  for  1916. 

Baldwins,  Limited.— Interim,  payable  on  April  6  of  zj  per 
cent.,  free  of  tax,  on  amount  paid  up  on  ordinary  shares  for 
half-year  ended  December  31,  the  same  as  a  year   ago. 

Broadwater  Rubber  EsUte  Co.— Interim  2 J  per  cent.,  less  tax, 
equivalent  to  4id.  nett  per  share.  The  profit  for  year  to  June 
30,  1917,  was  ;^i,o89. 

Canadian  Northern  Prairie  Lands  Co.— 4  per  cent,  for  half- 
year  ended  December  31,  being  at  rate  of  8  per  cent,  per  annum, 
payable  on  April  1.  A  year  ago  dividend  was  5  per  cent.,  or  at 
rate  of   10  per  cent.  . 

Chargola  Tea  Association.— Interim  5  per  cent.  (less  tax)  on 
ordinary  shares  on  account  of  year  ended  November  30,  1917, 
payable  April  15. 

Chargola  Tea.— Interim  5  per  cent,  on  account  of  season  1917. 
Cockshutt  Plow  Co.— 1  per  cent,  on  preference  shares,  payable 
May  I. 

Deebook  Dredging.— is.  per  share,  less  tax,  payable  on 
April  II. 

Eastern  Kodak  Co.  of  New  Jersey.— Extra  7i  per  cent,  on 
common  stock,  payable  on  June  1.  The  usual  quarterly  2J  per 
cent,  on  outstanding  common  stock  will  be  paid  on  July  i.  A 
year  ago  the  extra  on  common  was  2J  per  cent. 

Glen   Rubber    and  Tea  Co.— Usual  interim  5  per  cent., 
tax,  on  account  of  year   1917-18. 

Goldfields     Rhodesian     Development     Co.— Interim    6d. 
share,  less  income-tax,  in  respect  of  year  ending  May  31. 

Gopeng  Consolidated. — 8d.  per  share,  less  tax,  on  account  of 
year  ending  September  30,  1918,  and  bonus  of  lod.  per  share, 
less  tax,  on  account  of  year  to  September  30,  1917.  A  year 
ago  bonus  was  5d  a  share. 

Harpenden  (Selangor)  Rubber  Co.— Fourth  interim  25  percent, 
(less  tax)  on  account  of  year  1917. 

Ivanhoe  Gold  Corporation. — Final  in  respect  of  year  1917  of 
3s.  per  share  (making  total  for  year  of  los.  6d.  per  share),  less 
tax 


less 


per 


International  Banking  Corporation.— At  rate  of  6  per  cent, 
pet  annum  for  half-year  ended  December  31  last,  after  which 
U.S.  $364,914  have  been  added  to  undivided  profits,  which  will 
then  amount  to  U.S.  $1,713,491. 

Labu  (F.M.S.)  Rubber  Co.— Final  20  per  cent,  (actual), 
making  30  per  cent,  for  1917,  against  40  per  cent,  for  1916. 

London  Assurance  Corporation. — 22  per  cent.,  free  of  tax, 
being  £a  153.  per  share,  payable  as  follows  :— ;f  i  7s.  6d.  on 
April  I  and  £i  7s.  6d.  on  October  i.  A  year  ago  dividend 
was  20  "p^r  cent. 

P.  and  W.  Maclellan.— Interim  payable  March  30  of  6  per 
cent,   on  preference  and  ordinary  shares. 

McFarlane  and  Robinson.— Final  I2j4  per  cent,  for  half- 
year  to  December   31. 

National    Bank   of    Greece.— For    second   half-year,    1917,    at 

140  drachmae  per  share,   will  be  paid  by  the  Bank  of   Athens, 

22,  Fenchurch  Street,  E.C.,  against  surrender  of  Coupon  No.  10. 

New  Geduld  Deep. — 25  per  cent.,  equal  to  6d.  per  share,  same 

as  a  year  ago. 

Phoenix  Assurance  Co. — 53.  per  share,  less  tax  (against  4s.  6d. 
per   share  a  year  ago),  will   be  paid  on  May  i. 

Shanghai  Water  Works. — Final  for  1917  of  28s.  per  share 
and  bonus  of  los.  per  share,  less  tax,  payable  March  28.  A 
year  ago  the  same,  wi&  bonus  of  4s.  6d. 

Shawinigan  Water  and  Power  Co. — 1%  dollars,  or  at  rate 
of   7  per  cent,  per  annum  for  quarter  ending  March   31- 

Tongkah  Harbour  Tin  Dredging  Co. — 2S.,  and  bonus  of  is. 
per  share,  payable  on  April  22. 

Workington  Iron  and  Steel  Co. — Interim  on  ordinary  at  rate 
of  10  per  cent,  per  annum,  payable  on  April  i,  free  of  income- 
tax. 

Western  Telegraph  Co.->^S«cond  quarterly  interim  3s.  per 
share,  free  of  tax,  for  year  ending  June  30,  1918,  being  at 
rate  of  6  per  cetit.'per  aimtim',  same  as  a  year  ago.' 


Adelaide  Electric  Supply 
Co (Aug.) 

Do Prev. 

Alex.  Pirie  and  Sons. (Dec.) 

Do Prev. 

Automatic  Telephone 
Mfg.  Co (Dec) 

Do Prev. 

Ben  Evans  and  Co..  (Feb.) 

Do Prev 

Bon  Marchi    (Feb.) 

Do Prev 

B.  Vickerman  and  Sons 

(Feb.) 
Do Prev. 

C.  and  W.  Walker.. (J an.) 
Do Prev. 

Davis  Gas  Stove  Co.(Dec.) 

Do Prev. 

Direct  Spanish  Telegraph 

Co (Dec.) 

Do Prev. 

Dundee    Floorcloth     and 

Linoleum (j!^°  -) 

Do Prev 

Edinburgh  American  Land 
Mortgage  Co. .  .(Dec.) 

Do Prev 

Evans,  Sons,  Lescher,  and 

Webb    (Dec.) 

Do Prev. 

JamesW.Cook&Co.(Dec.) 

Do Prev. 

John    Wright    and    Eagle 

Range (Dec.) 

Do Prev. 

Lilley  and  Skinner. .  (Oct.) 

Do Prev. 

Locke,   Blackett  and    Co. 
(Dec.) 

Do Prev. 

M.  C. Thomson  &  Co.(Jan.) 

Do Prev. 

Milwaukee    and    Chicago 
Breweries  ....  (Sept.) 

Do.     Prev.] 

Moss'  Empires   ....(Dec.) 

Do Prev. 

National  Mort.  and  Agency 
Co.  ofN.Z.    ..(Sept.) 

Do Prev. 

Newbury's    (Feb.) 

Do Prev. 

New    Tamarugal    Nitrate 

(Jiiy) 

Do Prev 

Plummer  Roddis    . .  (Feb.) 

Do Prev 

Rivet,Bplt&  NBtCo.(Dec.) 

Do Prev 

SchillBros (Dec.) 

Do Prev. 

Sir  Wm.   Arrol    and  Co. 
(Dec.) 

Do Prev. 

Waste  Heat  and  Gas  (Jan.) 

Do Prev 

Western  Wagon  &  Property 
(Dec.) 

Do Prev 

United  Carlo  Gatti,  Steven- 
son, and  Slaters  (Dec.) 

Do Prev. 


154.450 
136,540 


46,820 
36,450 


Nett 
Profit. 


Total 
Re- 
serves. 


Divi- 
dend. 


18,710 
22,310 

72,140 
82,500 

16  000 
22,660 

59,810 
58,090 


97.980 
114,870 


42,200 
46,980 

45.130 
55.550 


55.040 

71.546 

203,650 

155.350 

158,000 
147,500 


112,570 
90,200 


58,210 
52,040 

83,830 
76,170 

33.150 
32,770 
21,440 
19,960 
43.780 
39.380 

18.230 
5.920 
13,220 
13.930 
i6,8oo 

20,220 

45.490 
57.700 

8,530 

14,926 

38,250 
39.050 

43.040 
43,950 
47.670 

60,940 

71,670 
69,000 

35.670 
42,500 


60,000 

60,000 

110,000 

100,000 

nil 
nil 
1,720 
940 
70,000 
70,000 

3i,ooo| 
31,000 
20,000 
50,000 
70,000 
67,000 

93,260 
82,810 

10,120 
10,120 

150,000 
144,000 

17,500 

15.000 

2,150 

2,150 

72,000 
60,000 
55.000 
45,000 


21,860 
30,700 
21,500 
30,170 

51.490 
59.740 
134,610 
92,690 


30,000 
25,000 
55.000 
55,000 

nil 

nil 
275,000 
241,060 


% 
12 

12 
6 
6 

6 

5 

7 

7 
18 
16 

15 
10 
10 
10 
10 
10 

7 

7    I 

10 
7i 

II 
II 

10 
124 
10 
10 

1/6 

i/6i 

10 

7 

10 
10 
25 
23 


I  Carried 
For- 
ward. 

~7" 


122,140 


25,880 
26,270 

26,420 
24,610' 


58.590 
54.590 
12,630 
12,050 

47.450 
56,060 
37.030 
28,200 
100,620 
97.000 
59.340 
33.090 

55.110 
85.350 
40,730 
40,080 

18.310 
1  18,590 

23,050 
22,400 


240,000 

235,000 

54,000 

52,000 

100,000 
100,000 
41,000 
36,000 
100,000 
75,000 
40,000 
12,000 

54.120 
54.120 
87,850 
75.850 

88,500 
88,500 


6 

7 
8 

7 

15 
12I 

7 
6 


1,640. 

1,240 
24,210 
19,880. 

11.550 

14.770 
6,640- 
4,800- 

12,600- 

14,920 

5.770. 

6.030 
11,670 
11,430 
11,140 
11,100 

32,970 
42,04a 

6,090 
9,080 

2,950 
1.750 

9.430 

8,590 

74.760 

74.060 

12,890 
12,170 
11,860 
26,040 

1,160 
1,300 
9,000 
7,600 

1,160 
820 

37.870 
22,820 

23.590 

24.590 

6,500 

6,120 


15 
loJJ 

8 

7i 
14 
14 
20 

15 

10 
10 

8 

8 

10 
10 


25,000 
20.ooe' 


2i 

2i 


2.«>5» 

50.470 
14,910 
14,810 

9.460 

9,810 

13.060 

4.500 

10,100 
84.830 
17.540 
19,910 

470 

420 

6,450 
6,630 


RIVER    PLATE  TRUST,   LOAN    AND    AGENCY  CO.,    LTD. 

Revenue  was  ;C3,ooo  smaller  at  ;£432,6oo  last  j-ear,  and  the 
nett  profits,  mainly  owing  to  higher  income-tax,  fell  ;^9,ooo  to 
^^300,600.  However,  ;^2o,ooo  more  was  brought  in,  -jO  there  is 
no  difficulty  in  repeating  the  dividend  of  22  per  cent,  on  the 
A  shaies  and  of  8  per  cent,  on  the  "B  shares,  while  ;£6o,ooo  is 
again  placed  to  reserve  (raising  it  to  ;f  1,170,000),  and  the 
balance  forward  is  increased  by  ;fio,5oo  to  £137. 3oo.  During 
the  year  terminable  debentures  were  reduced  by  ;£i65,ooo  to 
^357,000-  Loans  on  first  mortgage  ran  off  to  the  extent  of 
;f63o,ooo,  the  total  being  now  ;£3, 315.000;  but,  on  the  other 
hand,  investments  are  ;f2is,ooo  up  at  ;f668,ooo,  British  Govern- 
ment securities  ^£200,000  at  ;f936,ooo.  and  bills  receivable 
;£227,ooo  at  ;(fsio,ooo.  It  is  explained  that  during  the  past  year 
the  repayments  of  mortgage  loans  have  been  exceptionally 
heavy,  and  there  is  at  present  little  demand  for  new  loans,  with 
the  result  that  rates  of  interest  have  fallen  considerably-  AH 
this  is  a  pretty  clear  indication  that  the  country  is  exception- 
ally prosperous,  and  if  this  strong  company  loses  it  cne  direc- 
tion it  will  make  good  in  others. 


March  23,  191 8. 


Zbc  Jnvestors'  IReview. 


307 


Shipping  Losses  and  Output. 

A  White  Paper  has  been  issued  giving  in  tabular  form  the 
figures  of  shipping  losses  and  output  from  August,  1914,  down 
to  the  end  of  last  year,  and  it  will  be  useful  to  have  them  on 
record  for  future  reference.  The  foUowmg  statement  sum- 
marises the  position  at  December  31  :  — 


— 

British. 

Foreign. 

World. 

7,079,492 

4.748,080 

11.827,572 

Gains: — 

3.031.555 
780.000 

3,574.720 
1,8  9  000 

Enemy  tonnage  captured  

2.589,000 

Total  gains 

3,8ti,555 

5.383.720 

9- 191.375 

Nett  los- (world)      

2.632,297 

In  the  next  statement  is  shown  in  quarterly  periods  the 
amount  of  tonnage  lost  through  enemy  action  and  marine  risks 
since  the  outbreak  of  the  war  :  — 


Period. 


1914. 
August  and  September  . 
4th  Quarter 

«9'5. 

tst  Quarter 

>Dd      , 

3rd      , 

4th      

Z916. 

ist  Quarter 

and      „        

3rd       

4th      

ist  Quarter 

and     „ 

3rd      , 

4th      „       

Totals    


United 
Kingdom. 

Foreign. 

Total  for 
World. 

Gross  Tons. 

Gross  Tons. 

Gross  Tons. 

3J4.000 
154.728 

85,947 
126,688 

399.947' 
281,416 

215.905 
223.676 
356,f>59 
307.139 

104,542 
156,743 
172,822 
187,234 

320,447 
380,419 
529.481 
494.373 

325.237 
270,690 
284,358 
617,563 

198,938 
25 '.599 
307,681 
541,780 

524.195    . 
522.289 
592,039 
1.159.343 

911,840 

1,361,870 

952,938 

782,889 

707.533 
875,064 
541.535 
489.954 

I.619.373 
2,236,934 
•  ,494.473 
1.272.843 

7,079.492 

4,748,080 

11,627,572 

*  Thii  fijure  includes  182,829  gross  tonnage  interned  in  enemy  ports. 
The  following  statement  shows  the  output  of  m.erchant  ship- 
building (excluding   enemy  countries)    since  1914  :  — 


Period. 


•9"4- 
ubei 


Avgust  and  September 
4th  Quarter 

1915. 

ist  Quarter 

2nd      „        

3rd      

4th       

1916. 

1st  Quarter 

2nd     ,,        

3rd      „        

4th       

1917. 

ist  Quarter 

2nd      , 

3rd      

4th      

Totals    


Unitea 
Kingdom. 


Gross  Tons. 
253,290 1 
422,320 1 


266,267 
146,870 
145,070 
92.712 

95.566  ^ 
107.693 
124.961 
213.332 

246,239 
249,331 
248,283 
419.621 


3.031.555 


Foreign. 


Gross  Tons. 
337.310 

551,081 
1,146448 


282,200 
377. IC9 
368,170 
512,402 


Total  for 
World. 


Gross  Tons. 
1,012,920 


528,439 
626,440 
616,453 
932,023 


6,606,275 


Particulars  of  the  ene 
and  brought  into  service 
table :  — 


my  tonnage  captured  or  seized  in   port 
by  the  Allies  are  given  in  the  subjoined 


II 


Period. 

United 
Kingdom. 

Allies. 

Total. 

1914. 

Gross  Tons. 
725.500 
28,000 

5,000 

500 

3.500 

2,503 
3.500 

7,003 
4.500 

Gross  Tons. 
453.003 
5.000 

1,000 

503 

6,000 

241,000 

8,000 

47.500 

702,500 

266,500 

78,000 

Gross  Tons. 
1,178,500 
3J.OOO 

4th  Quarter 

1915. 
1st  Quarter , 

and      

I'onn 

3rd      

9.500 
2,500 

241,000 
11,500 
47.500 

4th      , 

1916. 
ist  Quarter 

tnd      „        

3rd  ;;    ...:.::::;;....:;::::::: 

4th      

'9'^- 

2nd     

709.500 

271,000 

78,000 

3rd      

4th  ;;    .::::::::::::;:::::::::: 

Totals  

780,000 

1,809,000 

2,589,000 

Income-Tax  Guides  and   Lessons. 

(Cofyright  Reserved.) 

II. 

Abatement  for  Children. 

The  allowance  is  now  the  tax  on  £2^  for  each  child,  step- 
child, or  adopted  child  in  life  and  under  16  years  of  age  on 
April  6  of  the  year  of  assessment.  The  rules  have  varied  1 
good  deal,  and  if  a  claim  is  to  be  made  which  goes  back  a  few 
years,  each  year  must  be  separately  considered.  Thus  it  is 
only  this  year  that  adopted  children  count,  and  it  is  right  to 
state  that  that  expression  has  a  very  wide  meaning  for  this 
purpose.  Thus  the  income  limit  is  now  ;f7oo,  but  two  years 
ago  the  abatement  was  refused  to  anyone  whose  income  ex- 
ceeded £s°°.  Except  in  the  case  of  adopted  children,  it  is 
not  necessary  that  the  claimant  is  maintaining  the  children. 

But  apart  altogether  from  these  statutory  concessions,  there 
may  be  very  important  relief  in  respect  of  children— without 
the  above  restrictions.  Thus,  sometimes  a  widow  is  entitled 
under  her  husband's  will  to  the  income  of  his  estate  under  the 
express  obligation  of  maintaining  and  educating  the  children. 
Where  this  is  the  position  it  may  usually  be  handled  to  great 
advantage,  but  the  subject  is  rather  too  special  to  bo  gone  into 
here.       The  mention  of  it  may  serve  the   purpose.       In  any 


likely  case,  if  assistance  is  required,  it  will  be  properly  ad- 
vised upon  if  submitted  through  the  Editor.  This  benefit  is 
not  limited  to  cases  where  the  income  does  not  exceed  £txi, 
nor  does  the  age  limit  of  16  apply. 

Life   Insur.^.nce   Abatement. 

The  money  applied  in  paying  premiums  of  insurance  on  th© 
life  of  oneself  or  wife  is  entitled  to  exemption.  This  is  subject 
to  a  limit  of  one-sixth  of  the  income  of  the  year,  or  of  1913-14 
if  the  income  was  larger  that  year.  The  one-sixth  limit  is 
waived  as  regards  extra  premiums  for  war  risk.  There  ar» 
now  certain  other  restrictions,  of  which  the  most  important  is 
that  on  new  policies  the  allowance  of  tax  relief  shall  not  ex- 
ceed 3s.  per  £.  That  is  no  restriction  at  all  in  the  case  of 
earned  income  unless  the  total  income  exceeds  ;f  1,500.  With 
this  qualification  the  insurance  abatement  is  allowed  to  every- 
one, no  matter  how  large  the  income  may  be. 
Mode  of  Giving  Abatements. 

The  ru'e  is  that  all  ordinary  abatements— scale,  children,  life 
insurance — are  allowed  off  that  part  of  the  income  which  is 
taxed  at  the  lower  rate.  That  ustially  means  that  they  ar« 
given  off  the  earned  income  before  trenching  on  the  higher- 
taxed  unearned  income.  The  object  and  the  result  are  to 
diminish  the  value  of  the  abatements.  Put  otherwise  the  rule 
often  deprives  the  taxpayer  of  the  earned  rate  altogether. 
Thus,  suppose  the  total  income  is  .1^300,  half  earned  and  half 
unearned,  and  that  the  abatements  come  to  jf  150.  That  £i$o 
cancels  the  earned  income,  and  the  tax  paid  is  wholly  at  the 
higher  unearned  rate.  There  is  an  exception  to  this  rule  in  the 
case  of  war-service  pay. 

MARGIN.4L  Relief. 

This  is  a  very  recent  introduction  to  prevent  the  taxpayer 
being  prejudiced  by  the  fact  that  his  income  is  a  very  little 
above  sonie  step  in  the  scale.  Otherwise  it  might  happen  that 
a  trifling  excess  of  income  would  alter  the  whole  taxation  basis 
and  result  in,  say,  a  small  increase  of  salary  or  profits  being  a 
loss  instead  of  a  gain.  The  mischief  was  that,  not  only  was 
the  excess  income  itself  taxable,  but  its  existence  increased  the 
tax  on  the  other  income.  Thus,  if  the  rule  had  not  been 
altered,  /J'130  income  would  have  been  exempt,  but  a  man  with 
;^i3i  would  have  paid  tax  (not  on  £1  but)  on  ;^ii.  Again,  a 
man  with  ;if7oo  would  have  got  the  scale  abatement  and  the 
children  abatement,  but  if  it  was  /'701  both  of  these  benefits 
wouH  have  been  lost.  Or  jf  1,000  unearned  would  have  paid 
3-5.  6d.  per  £,  while  /i,oo5  would  have  had  to  pay  4s.  per  £ 
on  the  whole.  All  thes;  absurd  results  are  made  impossible  by 
the  new  rule,  which  .-s  that  nothing  of  that  kind  shall  result  in 
the  payment  of  more  tax  than  would  be  payable  if  the  rise  in 
income,  or  gain  in  profits,  or  other  excess  over  the  scale  did 
not  exist  plus  the  amount  of  that  rise,  or  gain,  or  excess.     Thus 


NOW    READY. 


Published  March  21.  1918. 


32nd  Year 


Contains     at]    the    latest    information 
up  to  within  a  few  days  of  publication. 

THE 

MINING     MANUAL 

AND 

MINING  YEAR  BOOK 

X9X8 

By   WALTER    R.    SKINNER. 
The   Standitrd  Reference  Work  on  Mines. 

Price  17/6  net. 

Post  Free  (Inland).   18/-.  Post  Free  (Abroad),    19/- 

1,120  pages.         In  Demy  8vo,  bound  in   RED  Cloth. 

A     Recognised     Indispensable     Work     of      Reference 

for  Mining  Investors,  Mining  Engineers,  Mine  Managers, 

BanlierB,  Stockbrokers.  Solicitors,  or  anyone  interested  in 

the  Mining  Industry. 

A  RECORD  OF  INFORMATION  concerning  1.500  Mining  Com- 
panies operating  in  all  parts  of  the  world.  Gold,  Diamond,  Silver 
Copper,  Tin,  Iron  and  other  Mines,  Collieries  Exploration,  and 
Mining  Investment  Companies,  arranged  in  alphabetical  order. 

PARTICULARS  given  of  each  Company  include  the  Directors  and 
other  officials,  date  of  establishment,  seat  of  operations,  description 
of  the  property,  with  the  purchse  consideration,  plant  erected  or 
in  course  of  erection,  present  working  results,  ore  reserves,  details 
of  capital,  calls,  dividends  paid,  and  the  financial  position  as  disclosed 
by  the  latest  accounts.  Highest  and  lowest  prices  of  the  shares  for 
the  last  four  years,  also  latest  price. 

Directors  (3.925)1  SeereUries  (75o),  Mining  and  Consulting  Engineers 
and  Mine  Managers  (1,000)  includetheir  addresses  and  descnpiions 
and  names  of  the  Companies  with  which  they  are  connected. 

SUPPLEMENTARY  INDEX  of  private,  dormant  or  Companies  which 
have  ceased  to  be  of  public  or  market  interest.  One  of  the  most 
nseful  and  important  features  of  the  book.  It  is  the  only  list  of  ats 
kind  publishea. 

CRUSHING  TABLES  and  Gold  Outputs  from  the  principal  mines  are 
given  at  the  commencement  of  the  volume,  snowing  tons  treated 
monthly,  results  obtain(^d  and  y  eld  per  ton  ;  also  annual  yields. 

DICTIONARY  OF  MININGTERMS.—Anup-to-dateglossary covering 
440  mining  terms  by  the  use  of  which  mining  developments  can 
easily  be  followed.  The  difficulty. of  understanding  technical 
phraseology  is  thus  easily  mastered. 

To  be  obtained  from  all  Booksellers,  or  direct  from  the  Publishers, 

WALTER  R.  SKINNER,  11-12,  Clament's  Lane,  London,  E.G.4, 

AND 

"FINANCIAL   TIMC8,"  72,  Coleman  Street,  London,   E.C.2. 


3o8 


Zbc  Jnveetote'  IReview. 


March  43,  rgrS. 


the  man  whose  old  income  of  ;f  130  becomes  ;ti3t  will  pay  £'■ 
The  man  with  £7"^  a"''  '"""^  young  children  will  pay  £1  and 
tax  on  ;f530.  The  taxpayer  with  an  unearned  income  of 
/i.ooc  win  pay  £'i  plus  tax  on  ;ti,ooo  at  33.  6d.  But,  all  the 
Mme,  it  will  be  noted  that  even  thi»  relief  is  open  to  the  criti- 
cism that  it  leaves  a  man,  who  has  possibly  a  very  moderate 
income,  paying  tax  at  aos.  per  £  on  part  of  it. 
Loan  Intekest. 
Loans  from  banks,  stockbrokers,  and  discount  houses  have 
usually  this  peculiarity,  that  the  interest  on  them  is  debited 
without  deduction  of  tax.  When  that  is  so,  there  may  be  a 
claim  against  the  Inland  Revenue  for  repayment  at  the  sUu- 
dard  rate  of  5s.  per  £.  For  a  long  time  back  this  has  been 
allowed  in  the  case  of  loans  from  banks,  but  only  as  an  act  of 
Brace.  It  was  put  on  a  basis  of  legal  right  in  the  year  1915-16, 
and  it  was  extended  to  loans  from  stockbrokers  and  discount 
houses  in  1917-18.  The  bank  or  other  creditor  will  furnish  the 
certificates  required.  The  official  form  is  No.  40  A.  But,  of 
course,  if  the  loan  is  for  the  purposes  of  a  business,  the  interest 
will  be  debited  as  an  item  of  expense  of  earning  the  profit,  and 
the  matter  is  kept  right  in  that  way. 

Maintenance  of  Lands  and  Houses. 
In  Schedule  A,  assessments  on  ownership  of  Tands  and 
houses,  deductions  are  made  in  order  to  meet  the  estimated 
expense  of  maintenance  repairs,  insurance,  and  management. 
The  amount  deducted  is  one-sixth  for  houses  and  one-eighth 
for  land,  farm  houses,  and  other  farm  buildings.  These  de- 
ductions are  sometimes  not  enough.  To  meet  that,  a  partial 
and  rather  complicated  remedy  is  provided.  It  is  limited  to 
lands,  &c.,  and'  to  houses  not  exceeding  ^12  a  year.  To  gain 
any  extra  allowance  it  must  be  shown  that  on  the  average  of 
the  preceding  five  years  the  cost  has  exceeded  the  proportions 
stated.  When  that  is  proved,  the  excess  will  be  allowed  off 
the  assessment,  and  tax  repaid  accordingly.  'Maintenance" 
is  held  to  be  limited  to  what  is  required  to  maintain  the  exist- 
ing rent,  including  in  this,  if  required,  replacement  of  farm 
■houses,  buildings,  fencing,  &c.  Outlay  on  a  mansion  house 
and  pleasure  grounds  does  not  count.  This  extra  maintenance, 
when  established,  is  not  a  mere  tax  abatement,  but  an  actual 
•deduction  from  income.  v,.t 


Tea,  Oil  and  Rubber. 

Last  month's  imports  of  rubber,  according  to  the  Board  of 
Trade  returns,  amounted  to  132,689  centals,  a  decrease  of  31,000 
centals  as  compared  with  February,  1917,  and  in  the  past 
two  months  we  .have  received  33,000  centals  less  at  309,53s 
centals.  On  the  other  hand,  exports  amounted  to  only  34,121 
centals,  a  decrease  of  111,300  centals,  and  for  the  two  months 
the  shipments  are  208,000  centals  smaller  at  65,612  centals.  No 
wonder  stocks  have  been  accumulating,  but  with  the  embargo 
on  shipments  from  the  East  until  May,  there  is  no  reason  to 
anticipate  a  serious  glut  in  the  immediate  future.  On  the  other 
hand,  there  is  equally  little  reason  to  fear  a  dangerous 
shortage. 

There  was  quit©  a  grand  spurt  in  the  Rubber  market  at  the 
beginning  of  the  week,  and  the  price  of  standard  crfepe  was 
carried  up  to  2s.  6^d.,  for  what  particular  reason  was  not 
easily  discoverable.  Naturally  the  share  market  followed  suit, 
and  dealings  became  more  active  than  for  some  considerable 
time  past,  while  quotations  rose  appreciably.  However,  the  burst 
of  enthusiasm  did  not  last  long.  Standard  slipped  back,  and 
although  the  share  market  did  not  respond  immediately,  a 
sagging  tendency  has  developed,  with  the  result  that  sellers 
appear  to  be  about  as  numerous  as  bargain-hunters.  It  cannot 
be  pleasing  news  to  the  bulls  that  spot  rubber  in  Singapore 
has  been  quoted  round  is.  5d.,  f.o.b.,  and  even  if  this  is  due  to 
local  and  temporary  conditions,  it  is  a  danger  signal  which 
cannot  safely  be  entirely  disregarded.  But  it  is  useless  to  attempt 
to  forecast  the  immediate  future,  and,  of  course,  the  restriction 
of  output,  whether  voluntary  or  compulsory,  must  have  a  steady- 
ing effect   for  a  time. 


{To   be   continued.) 


WEBLEY    AND    SCOTT,    LTD, 

Last  year  the  nett  profits  amounted  to  /^86,o8o,  an  increase  of 
;^8,ooo,  after  charging  ;£5,ooo  more  for  depreciation,  but  ;f54,ooo 
is  set  aside  to  provide  for  excess  profits  duty,  which  amounted 
to  ^^54.540  for  the  years  1915  and  1916.  Consequently,  the 
dividend  and  bonivs  are  reduced  from  21  per  cent,  to  20  per 
cent.,  and  the  balance  forward  is  ;f3,ooc  less  at  £ii,yio.  All 
the  same,  the  company  has  not  done  so  badly,  but  it  would  be 
more  pruJent  to  pay  smaller  dividends  until  a  re'iel-ve  fund  is 
accumulated  against  goodwill,  S:c.,  figuring  at  /;g,20o. 


PUBLIC     INCOME     AND    EXPENDITURE. 

The   following   are   the   receipts   into   and   issues  out     of    the 
Eyyhequer  between  April  1.  1917,  and  Mach  16.  1918: — 


Estimate 

for  the 

Year 

iqiy-igtS. 

(See  note.) 


Total  Receipts 

into  the 
Exchequerfrom 
April  I,  1Q17,  to 

Mar.  16,  1918 


Balances   in    Exchequer   on 

April  I— Bank  of  England  . 

Bank  of  Ireland    . 

Revenub. 

Cust(»ns 

Excise 

Estate,  &c.,  Duties 

Stamps 

Land  Tax ] 

House  Diity    I 

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Duties,  &c 

£,and  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    froo.    Sundry 

Loans,  &c 

Miscellaneous 

Revenue  

Total   


yo,y$o,ooo 

34,950,00c 

29,000,000 

8,000,000 

a,6oo,ooo 

224,000,000 
aoo»ooo,ooo 

400,000 
33,700,000 

600,000 

7,500,000 

27.100.000 


Total   Receipts 

into  the 
Exchequerfrom 
April  I,  1916,  to 
I  Mar.  17,  1917. 


25,209,947 
1,225,91a 


26.435,859 


638.600,000 


Other  Rbckipts. 

Repayment  of  Advances  for  Bullion   

Repayment  of  Advances  for  Interest  on 
exchequer  Bonds  under  the  Capital  Expen- 
diture (Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For  Treasury  Bills  (tor  supply)    

For  Exchequer  Bonds  under  the  Capital 
Expenditure  (Money)  Act,  1904 

For  Exchequer  Bonds  under  the  Cunard 
Agreement  (Money)  Act,  1904 


67,612,000 
37,067,000 
30,329,000 

7,567,000 

2,450,000 

221,581,000 
203,327,000 

625,000 
32,050,000 

£30,000 

1,925,975 
48,10^,683 


653.359.6'iS 


For  4i  per  Cent.  War  Loan,  1925-1945 

For  5  per  Cent,  Exchequer  Bonds,  1919  .... 

For  5  per  Cent.  Exchequer  Bonds,  1920    

For  5  per  Cent.  Exchequer  Bonds,  1921   .... 

For  5  per  Cent,  Exchequer  Bonds,  1923 

For  6  per  Cent.  Exchequer  Honds,  1920    .... 

For  War  Expenditure  Certificates    

For  Wat  Savings  Certificates 

For  other  Debt  created  under  the  War  Loan 

Acts,  1914-1917 

For  4  per  Cent.  War  Loan,  1939-1942,  and  5  per 

Cent.  War  Loan,  1920-1947    

For  National  War  Bonds    

East  Africa  Protectorate  Loan  :    Re|>a>-ment» 

on  account  of  Principal  and  Interest 

Cunar.l  Loan  :  Repayment  on  a/c.  of  Principal 

Suet  Canal  l^rawn  Shares 

China  Indemnity   

Temporary  Advances— Ways  &  Means  (tnciud- 

ing  Treasury  BlUi  f  ms>«»>ooo  m  1916-1917) 

Toul 


679.795.517 
a,6io,ooo 


169,818 
100,000 

68,000 


394.500 
3,707,209,000 


1,300.000 


83,270,400 
48,000 

57,000,000 

683,612,059 

68,082,610 
*494.395.o«> 

5.940 
130,000 

12,797 
378,314 


£ 
95,iii,c6s 
463-941 


25.575.006 


67,511,000 
54,625,000 

29,780,000 
7,281,000 

3,430,000 


189,151,000 

130,2 '8,000 

481,000 

3  2,  f 00,000 

580,000 

5.I55.9«9 

12,568,457 


Note.— Estimate  as  in  House  of  Conmons 
ple4est«ry  Gratttt. 
*£lcludins  sales  through  joint  stock  and  private 


5.790.535.465 


532.57^446_ 
558,146,452 

3,550,000 


91.570 

210,000 

160,000 

8,8Z4 

8,000 

74.600 

1,768,161,000 

3,087,600 


424 
34»362,6o4 
84,140.469 
62,495  527 

160,951,7^0 
39,878,500 
70,5501000 

M.052,245 
74».  560,090 


5.940 

130,000 

io,795 

400,000 

89s.yo3.eoo 


4.6^.<W.o5'o 


Expenditure 
AND  other  Issues. 


Estimate  for 
the  Year 

1917-18. 
(See  note,) 


I  Total  Issues 
but  of  the  Ex- 
jchequertomcet 
jpayments  from 
April  I,  1917,  to 
{   Mar.  16,  :qi8. 


I  Tout  Issues 
|out  of  the  Ei- 
chequer  to  meet 
payments  from 
April  I,  IQ16,  to 
Mar.  17,  '9'7 


£ 

17,000,000 


9,700,000 
1,695,000 


2,767^631^000 


Expenditure. 
Permanent  Charge  of  Debt   . 
Interest,  &c.,  on  War  Debt . 
Payments  to  Local  Taxation 

Accounts,  Stc 

Other      Consolidated      Fund 

Services    

Supply  Services    

Expenditure    

Other  Issues. 

For  Advances  for  Bullion     _ 

Fer  Advances  for  Interest  on  Exchequer 
Bonds  under  the  Capital  Expenditure 
(Money)  Act,  1934    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supply 

For  Exchequer  Bonds  under  the  Capital 
Expenditure  (Money)  Act,  1904    

For  Exchequer  Bonds  underthe  Cunard  Agree- 
ment (Money)  Act,  1904 

For  War  Loans,  Exchequer  Bonds,  &c., under 
Section  34  of  Finance  Act,i9i7  

For  War  Expenditure  Certi6cates  under  War 
Loan  Act,  igi6    

For  other  Debt  under  the  War  Loan  Acts 
1914  to  1917 

For  Depreciation  Fund  under  the  Finance 
Act,  1917 

Old  Sinking  Fund,  1907-8,  Issued  under 
Section  9  of  the  Finance  Act,  1908 

Old  Sinking  Fund,  1910-11,  issued  under 
the  Finance  Act,  1911,  Section  16  (i)  (b) 

Old  Sinking  Funds,  191  i-u  and  1913-14,  issued 
under  the  Anglo- Persian  Oil  Company 
(Acquisition  of  Capital)  Act,  1914  

East   Africa  Protectorate  Loan  Repayments- 
Issued  to  reduce  Debt  under  the  Finance 
Act,  1911 ■• 

Cunard  Loan  Ret  ayts.— Issued  to  reduce  Debt 
under  the  Cunard  Agreemt.  (Money)  Act,  1904 

Suez  Canal  Drawn  Snares— Issued  to  redice 
Debt  under  the  Finance  Act,  1898 

China  Indemnity— Issued  to  reduce  Debt 
under  the  Finance  Act,  1906 

Temporary  Advances  repaid— Ways  and  Means 
(incldg.  Treasury  Bills  £345,000,000  in  I9i6-i7>l 


( 

18.935,-66 

i63.'23.77« 

7.594.773 

1,528,484 
a.365,<a3.y4 


a,557i3°7,778 


2,870,000 


169,818 
145,000 

gS.oM 


455.900 

♦«.I73.433.«» 


1,300,000 

17,368,191 

>37«.5<» 

87,930.494 

31,788,240 

xo,too 

30,C00 

949,000 

5.940 

130,000 

IJ.797 


T 

19.220,157 

104,687,873 

7,811,201 

1,844,881 

».I88,}53,358 


2,022,122,470 


3,730,000 


9' .37" 

<}0,«ao 

234,000 

8,008 

8,000 

98,900 
1.786,593.000 

3,067,600 


1,144,200 

3,000,000 

l7,6co,72« 

94,000 
31.>«o 

250,000 

5«4« 

130.000 
10. 795 


i      I9itl' 
Mar.  16. 
Balances  in  Exobeqnec— !         £ 

Bank  of  England ■3.I90.383 

Bank  of  Ireland 1    1,474,910 

Total 


1917. 
Mar.  17. 

£ 

30,652,07^ 

1,541,810; 


378,314 

400.000 

898,124,000 

788,555.o«>  . 

5.775.869.97« 

4,627.445.167 

14.665.493 

31,193,883 

1  5,790.533,465 

4.6S9,*39,050 

Paper  No.  75  of  1917,  and  Sup- 
baaktoot  xttbcoucbt  taucouai. 


Msiio.— Treamry  Bills  oatatandiag  or  Mar.  16, 1918 *^9??'"?i5°? 

•  Includes  £123,000,  the  j^oceeds  of  which  were  not  carried  to  (am  BEooequer 
within  the  period  of  the  account,  besides  a  part  (not  yet  atcartained  aad 
brought  to  account)  of  the  Bills  tendered  as  subaortptions  toNalional  Wa«  Bosda. 

t  Includes  part  oaymeM  of  Bills  and  Certificates  teadaced  as  sebtcnptiona 
t«  NaMnal  WM  BeMs. 


March  23,  1918. 


tCbe  Jnvestots'  IReviev^^ 


309 


=a 


I 


Notes  on  Books. 

Directory  of  Directors  for  1918.  Thomas  Skianer  and  Co., 
Greshani  House,  Old  Jiroad  Street,  E.C.  2.   Price  15s.  nett. 

This  invaluable  directory  has  reached  its  thirty-ninth  year 
of  publication,  and  it  is  now  a  bulky  volume  of  1,236  pages. 
The  preface  tells  us  that,  in  spite  of  the  restrictions  placed 
upon  the  formation  of  new  companies,  the  number  of  directors 
has  increased  during  the  past  year,  for  while  over  1,500  names 
have  fallen  out,  2,300  new  names  have  been  added,  and  the 
list  now  numbers  upwards  of  23,000.  These  directors  are 
engaged  in  the  management  of  66,130  joint  stock  companies 
with  a  paid-up  capital  of  2,738  million  pounds,  and  also  all 
such  companies  as  are  based  on  Acts  of  Parliament  and 
charters.  The  book  is  so  "well  known,  and  so  indispensable  to 
the  business  community,  that  it  requires  no-  further  com- 
mendation from  us. 

Mining  Manual  and  Mining  Year-Book  for  1918.  Walter  R. 
Skinner,  11-12,  Clement's  Lane,  E.C.  4,  and  Financial 
Times.  72,   Coleman   Street,   E.C.  2.     Price   17s.   6d.   nett. 

Mr.  Walter  Skinner's  indispensable  handbook  for  1918  has 
just  been  published,  and  he  is  quite  right  in  describing  it  in 
the  preface  as  "the  standard  reference  work  on  mines."  Its 
price,  unfortunately,  has  had  to  b^  raised  to.  17s.  6d.,  but 
that  IS  a  very  moderate  increase  on  the  usual  15s.,  looking  at 
the  enormous  increase  in  the  cost  of  materials  and  labour. 
Knowing  something  of  the  difficulties  these  impose  upon  pro- 
prietors .ind  publishers  of  all  kinds,  we  can  only  congratulate 
Mr.  Skinner  on  the  excellent  style  in  which  the  book  is  pro- 
duced. Its  information  is  brought  close  up  to  date,  and  is  as 
accurate  as  it  can   be   made. 


I 
I 


It 


iWhat    Balance   Sheets   Tell. 


BANK    OF    BENGAL, 

I-or  the  past  half-year  the  profits  showed  a  slight  increase  at 
Ks,  2o,S4,ooo,  but  less  was  brought  in,  and  the  available  balance 
13  Ks.  16,000  down  at  Rs.  26,00,000.  However,  in  addition  to 
he  dividend  and  bonus  at  the  rate  of  16  per  cent,  per  annum, 
ta.x  free,  there  is  a  special  bonus  of  1  per  cent,  per  annum 
h«Ln?*  /"-    '^!f   ^'   ^°"/    '''"    '"    P'^<=^d    to   reserve,    and    the 

creased%,  s'"'''  ^^'  been  good,  and  deposits,  &c.,  have  in- 
counteH  .^     ^'°°^'<^^    to    Rs.  29,34,00,000,      while      bills      dis- 

sheet  now  lof,,^'-  ''^,1'°°'?^  ^*  ^^'-  5.«>.3o,ooo.  The  balance- 
sheet   now    totals   at    Rs.  38,32,24,000,    an    increase    of     nearly 

1\S.    10,00,00,000.  -^ 

BILBAO   RIVKR   AND   CANTABRrAN   RAILWAY   CO.,   LTD. 

i'or    1917    the  grcss    receipts    were   only   /47,ooo    or    /lOAon 

amear/-'"  ""^'  ^^"'^  %  expenses^  w^^^'  pr^c'kaVT 
nrnfit     •  '^''^.Joo.     W  1th  rather  more  nett  revenue  credits,  ths 

at  /^/."<^  tL^'"";'^;i  'f^""  ''^°"g'''  ■"'  i^  ^8.700  les^ 
Deated^'^^:^  The  dividend  of  gs,  per  share  is,  however,  re- 
peated, and  as  /i5,ooo  last  year  had  to  be  written  off  for 
depreciation  o  investments,  whereas  no  similar  app^oprfation 
r^eUn   K   '"^f  °"   '^''r  "^^^'i^ton,    the   balance   forward  is   in- 

ui&c  .nr,hl  l^  u  5'  P"/-^"'-.  owing  to  the  diminished 
men^^    nf     ■  ^^^%  ""'^  ^^.  ^"'^'   ^"'^  «*''"  materials.      Ship- 

ments    of    iron    ore    from    Bilbao    were    307,000    tons    le«    at 

was'Too!r"r  '""  '",?  '''"^^  '''"'"'  ''^^  '»>«  compLy'riine 
Teen  ,^'i^l.  h'  T''"u-  ^'  ^S^-.-Joo  tons.  The  decrease  has 
doTh,ir  -^  "'^  T  shipping  difficulties,  and  business  will 
doubtless  rev.ve  under  more  favourable  working  conditions 

BRISTOL  TRAMWAYS  AND  CARRIAGE  CO.,  LTD. 

Af^^'frV^"-  ^'°^'  receipts  were  ;^042.Soo,  an  increase  of 
^er'^'vin.Trf  ^  ■^'"°  °/-'  ^«'°°°  '"  '9'^-  ^-^'Penses,  how- 
brou.hf  ,n  %  "1  ,'°°°  '°  ^530,^00,  and,  including  the  amonnt 
brought  m  the  balance  is  ;fi2,ooo  higher  at  £122,240.  It  is 
consequently  proposed  to  raise  the  dividend  frmn  6  per  cent    to 

bila^ce'??rw  '"J  '■  ■"  ''=^':?  ^'"='^'S  ^30.000  to  reserve,  the 
balance  forward    is    increased    by    /^S,5oo    to    /i8,ieo.       With 

fese;r  it"r?fi"''  '°'  ^'':^'"'"^  r.ne^B.h,  the  total  addition  to 
reser\e    is   £06,000,    rais.ng    it    to    £^90,600.     Receipts    in    the 

HaTT/?"'?''"/  '""^^'^^  -^^°''°°'  ""^  '^°'^°i  the  car 
ca^fL  ^«.  ''"'  ^".000,  while  the  number  of  passengers 
Ur^,\l  r  3.!5o,ooo  larger  at  63,982,000.  The  option  of  the 
intish  Corporation  to  purchase  the  tramways  undertaking  has 
been    further  extended   by   the   Board  of  Trade  till   Octob^er   31 

SAVOY    HOTEL,   LTD. 

Like  most  catering  businesses,  this  company  did  extremely 
welllast  year  the  nett  profits  at  £.78,000  showing  an  increase 
of  £6.,ouo  which  follows  a  gain  of  £32,000  in  1916.  Interest 
required  £7  000  more,  and  the  balance  is  just  doubled  at 
£108,000.  Under  the  scheme  of  arrangement  entered  into  at 
the  end  of  1915,  interest  on  certain  debenture  issues  is  payable 
in  deferred  certificates  during  the  war,  and  no  profits  can  be 
distributed  during  the  "  suspension  period,"  so  that  the  un- 
divided balance,  amounting  to  £162,000,  is  carried  forward.  It 
IS  stated  that  tlio  gross  receipts  of  all  the  company's  hotels  and 
restaurants  show  a  large  increase  on  those  of  the  previous  year, 
and  the  rate  of  nett  profit  earned,  though  not  so  high  a  per- 
centage of  the  gross  receipts  as  in  pre-war  times,  has  also  ibeen 
satisfactory,  having  regard  10  the  continued  rise  in  wagesj  the 
heavy  charge  for  inconic-tax.  and  the  incieascd  cost  of  all  com- 
modities. 


WILLIAM  WHITKLEY,  LTD; 

Trading  profits  in  the  year  to  February  14  amounted  to 
£144,150,  an  increase  of  £8,500.  Interest  required  rather  lesS) 
and,  including  the  amount  brought  in,  the  available  balance  is 
£11,000  larger  at  £126,100.  After  again  p'acing  £10,000  to 
reserve  (raising  it  to  £170,000)  and  setting  aside  £4,000  more  at 
£11,000  for  depreciation,  &c.,  the  dividend  of  6  per  cent,  is 
repeated,  and  tlie  balance  forward  is  increased  by  £7,000  to 
£19,650.  Changes  in  the  accounts  are  mostly  unimportant,  but 
stock  is  up  £55,000  at  £346,000,  and  cash  £27,000  at  £72,200. 
LINOLEUM     MANUFACTURING     CO.,     LTD. 

Gross  profits  for  the  past  year  amounted  to  £94,630,  an  in- 
crease of  £7,000,  and  the  nett  profit  comes  out  £3,000  up  at 
£52,000.  With  a  little  more  brought  in  the  dividend  is  raised 
from  y'/i  per  cent,  to  10  per  cent.,  and  as  £8,500  less  has  to  be 
provided  for  depreciation  of  investments,  the  carry  forward  is 
£8,200  higher  at  £28,100  after  again  placing  £10,000  to  re- 
serve, which  now  amounts  to  £142,300.  It  is  stated  that  the 
home  business  has  increased,  but  the  export  trade,  owing  to 
shipping  difficulties  and  advanced  prices,  shows  a  decline. 
Stocks  have  also  been  reduced  owing  to  the  increasing  difficulty 
of  procuring  raw  materials,  and  the  money  thus  released  has 
been  placed  in  War  Loans  and  other  Government  securities. 
The  company  is  in  a  strong  financial  position. 
VENE8TA,    LTD. 

In  the  year  to  June  30,  1916,  the  trading  profits  advanced 
£106,000,  and  for  the  last  12  months  there  is  a  further  increase 
of  £136,000,  making  the  total  £357,000.  Expenses  and  loss 
on  exchange  rose  £34,000,  and  £100,000  is  set  aside  as  a  pro- 
vision for  losses  on  Continental  assets,  against  £50,000  placed 
to  reserve  last  time.  Nett  profits  come  out  at  £136,000,  or  only 
£2,000"  up,  but  £48,000  more  was  brought  in,  and  the  divi- 
dend is  doubled  at  20  per  cent.-,  leaving  £133,000,  an  increase 
of  £71,000,  to  be  carried  forward.  It  is  pointed  out  that  the 
dividends  for  the  past  four  years  have  averaged  10.3  per  cent. 
The  company's  factory  at  Silvertown  was  destroyed  in 
February,  1917,  but  good  progress  has  been  made  in  re-estab- 
lishing it.  In  Russia  conditions  are  extremely  difficult,  as 
may  easily  be  imagined,  but  everything  possible  is  being 
done  to  conserve  the  company's  interests. 

SPRATT'S    PATENT,    LTD. 

A  rather  serious  drop  in  the  profits  occurred  in  1916,  but 
last  year  there  was  some  improvement,  the  trading  results 
showing  a  gain  of  £4,000  at  £68,200.  However,  increased  ex- 
penses absorbed  practically  the  whole  of  the  advance,  but  the 
amount  brought  in  was  £3,400  larger,  and  the  dividend  is 
again  made  up  to  2s.  3d.  per  share  for  the  year.  Reserve 
fund  and  other  appropriations  amounting  to  £18,000  are 
repeated,  and  the  carry  forward  is  £4,000  up  at  £17,950. 
Changes  in  the  balance-sheet  do  not  call  for  remark.  The 
company  has  been  largely  employed  on  Government  work,  and 
its  ordinary  trade  has  been  somewhat  restricted  owing  to  the 
position  with  regard  to  raw  materials  and  other  difficulties. 
We  are  not  surprised  to  hear  that,  and  in  the  circumstances 
the  results  may  be  considered  very  satisfactory. 

C.  AND  E.   MORTON,   LTD. 

Trading  profits  last  year  amounted  to  £180,700,  and  while 
income-tax  required  double  at  £10,000,  there  was  a  saving  of 
£5,600  on  the  allowance  for  depreciation,  with  the  result  that 
the  nett  profit  is  £9,500  higher  at  £160,800.  Moreover, 
£20,500  more  was  brought  in,  so  that  the  balance  is  £30,000 
higher  at  £258,300.  The  directors  keep  the  dividend  at  17^ 
per  cent.,  and  again  place  £20,000  to  reserve,  raising  it  to 
£121,000,  but  nothing  as  against  £10,000  has  to  be  set  aside 
for  depreciation  of  investments,  and  after  granting  £2,500  more 
to  the  pension  fund  there  remains  £131,000,  or  £33,000  more, 
to  be  carried  forward.  Except  for  an  increase  of  £240,000  to 
£428,000  in  cash  balances,  changes  in  the  balance-sheet  are  of 
no  particular  significance,  but  the  company  is  in  a  very  strong 
financial  position,  and  no  valuation  is  attached  to  the  goodwill. 
DE   DION    BOUTON    (1S07>,    LTD. 

Such  meagre  information  is  given  in  this  company's  report 
(to  September  30  last)  that  it  'S  quite  impossible  to  form  any 
intelligent  opinion  as  to  its  actual  position.  Twelve  months 
ago  the  nett  profit  for  two  years  was  brought  out  at  £26,400, 
but  since  then  goodwill  and  patent  rights  have  been  transferred 
to  the  French  company,  amounting  to  £78,000,  and  a  debit  of 
£51,200  is  brought  into  the  present  balance-sheet.  The  bald 
statement  is  made  that  the  profit  for  the  past  year  amounted  to 
to  £29,250,  "  subject  to  munitions  levy  or  excess  profits  duty, 
1/  any,"  and  the  debit  balance  is  thereby  reduced  to  £21,930. 
It  is  stated  that  the  business,  almost  entirely  confined  to 
Government  work,  continues  to  show  satisfactory  progress,  but 
is  this  a  straightforward  way  of  dealing  with  the  shareholders 
or  with  the  public,  who  may  be  otherwise  interested  in  the 
concern  ? 

RANSOMES,   SIMS  AND   JEFFRIES,   LTD, 

In  1916  this  company  had  an  increase  of  £57,000  in  trading 
profits,  and  there  was  a  further  gain  of  £3,000  last  year,  rais- 
ing the  total  to  £106,100.  Nett  profits  at  £90,000  are  a  little 
lower,  but  £14,000  more  was  brought  in,  and  the  balance  of 
£112,840  shows  an  increase  of  £13,000.  After  placing  £10,000 
more  at  £50,000  to  reserve,  the  dividend  of  8  per  cent.,  tax 
free,  is  repeated,  and  £3,000  more  at  £36,500  is  carried  for- 
ward. Capital  expenditure  amounted  to  £55,800,  an  increase 
of  £19,000.  Stocks  have  risen  £iqo,ooo  to  £550,000,  and  this 
has  evidently  put  some- strain  on,  the  fijianses,  .as.  there  is  no* 
a  bank  overdraft  of  £78,000  against  a  cash  balance  of  £63,000 
a  year  ago. 


3TO 


Zbc  Jnvestove*  IRcvtew. 


March  23,  1918. 


THE 


COMPANY  MEETINGS. 

EMPLOYERS'    LIABILITY  ASSURANCE 
CORPORATION. 


The  37th  annual  general  meeting  of  the  Kniployers'  Liability 
Assurance  Corporation,  Ltd.,  was  held  on  Wednesday  at 
Hamilton    House,  Victoria  Embankment,  E.G. 

Lord  Claud  Hamilton,  M.l'.,  who  presided,  said  that  the 
report  and  accounts  now  submitted  were  the  best  in  the  experi- 
ence of  the  corporation,  and  he  was  glad  to  be  able  to  state 
that  they  neither  showed  nor  contained  any  weak  spot  in  any 
class  of  theij:  business,  or  in  any  Allied  or  neutral  country  in 
which  they  were  established.  One  .subject  for  congratulation 
was  the  removal  of  the  anxiety  felt  in  a  more  or  less  degree 
as  to  the  ultimate  result  of  the  very  great  increase  in  the 
corporation's  casualty  or  workmen's  compensation  business  in 
the  United  States,  owing  to  its  being  the  outcome  of  new 
legislation.  They  had  now  three  or  more  years'  experience,  and 
though  it  was  too  early  to  say  that  it  could  be  run  at  a  profit, 
it  might  be  assumed  that  such  business  could  be  carried,  if 
wisely  selected,  without  the  risk  of  heavy  loss.  The  account 
showed  total  premiums  for  the  year  of  j^'ajSgCjOoo,  against 
^1^2,456,000  in  the  previous  year,  an  increase  of  ^940,000.  This 
increase  was  derived  from  almost  every  country  where  they 
operated  and  in  every  class  of  business.  The  great  increase 
was  again,  as  last  year,  in  America.  The  payments  under 
policies  amounted  to  /i, 554, 700,  or  45.8  per  cent.,  against 
;fi, 193,000  in  the  previous  year,  an  increase  in  money  of 
;^36i,7oo,  but  a  decrease  in  percentage  of  2.8.  The  commission 
paid  amounted  to  j£693,9oo,  against  ^536,300,  and  the  expenses 
of  management  were  ^255,200,  against  ;^i 79,500.  The  reserve 
for  unexpired  risks  stood  at  .^1,371,300,  compared  with 
;^982,4oo.  In  dealing  with  this  reserve  last  year  he  pointed 
out  that  owing  to  the  unusual  amount  of  excess  premiums  they 
might  have  well  reduced  this  reserve,  and  the  running  off  of 
that  reserve  had  more  than  justified  that  remark.  The  same 
was  true  of  this  year,  as  the  increase  in  premium  shown  was 
very  largely  made  up  of  excess  premiums,  all  the  liability  of 
which  was  already  earned.  Notwithstanding  that,  they  had 
still  made  the  reserve  the  full  40  per  cent.,  as  in  respect'"(W 
the  other  premiums.  Moreover,  they  had  reserved  in  the  marine 
business  the  whole  balance  of  the  account,  and  not  only  40  per 
cent,  as  in  the  other  classes  of  business.  The  reserve  for  out- 
standing losses  was  ^^1,185,300,  as  compared  with  ;^905,8oo  a 
year  ago.  The  directors  believed  that  the  amount  reserved  was 
a  very  full  provision  for  the  liabilities  of  the  corporation  in  this 
respect.  The  total  fund  amounted  to  ^^2, 556,600,  compared  with 
;^i, 888,300  at  December  31,  1916.  The  balance  of  revenue 
account  transferred  to  profit  and  loss  was  ;^238,7oo,  compared 
with  ^^35,500  a  year  ago,  or  an  increase  of  ^^203,200.  In 
paying  the  dividend  of  20s.  per  share,  free  of  tax,  the  share- 
holders must  not  overlook  the  fact  that  the  corporation  was  pay- 
ing on  their  behalf  a  further  ^25,000  in  respect  of  income-tax. 
The  interest  arising  from  their  investments  as  they  stood  on 
January  i  this  year  was  approximately  ^130,000  per  annum. 
The  investments  amounted  at  December  31  last  to  ;^3, 126,500, 
against  ^2,610,700  in  the  previous  year,  or  an  increase  of 
£S^S!^'^-  The  depreciation  on  their  investments  of  ;^26i,ioo 
was  fully  protected  by  the  investment  reserve  fund  of  ^^267,400. 
The  amounts  due  from  other  companies  stood  at  ;,;^8g,4oo, 
against  ^^62,100  last  year.  Included  in  that  amount  was  a 
considerable  sum  due  from  German,  Austrian  and  Russian 
companies.  The  fire  husiness  had  steadily  improved,  and  the 
volume  of  the  marine  insurance  business,  which  they  had 
started  in  September  last,  had  come  fully  up  to  their  expecta- 
tions. A  suggestion  had  been  brought  forward  that  the  time 
had  arrived  when  they  might,  with  -advantage,  reduce  the 
amount  of  the  uncalled  capital,  but  he  strongly  deprecated  any 
idea  of  tampering  with  their  share  capital  while  the  war  was 
in  progress. 

The  report  and  accounts  were  unanimously  adopted,  and  a 
resolution  was  also  unanimously  passed  increasing  the  re- 
muneration of  the  board  from  ^^5,000  to  ;^8,ooo. 

THE  LONDON  ASSURANCE. 

The  annual  general  court  of  the  corporation  of  the  London 
Assurance  was  held  on  Wednesday  at  their  oflfices  in  the  Royal 
Exchange,  under  the  presidency  of  Mr.  Colin  Frederick  Camp- 
bell, the  governor. 

The  Secretary  (Mr.  C.  A.  Denton)  read  the  notice  convening 
the  meeting,  the  resolutions  approving  the  provisional  agree- 
ment dated  the  4th  instant,  and  made  between  the  British  Law 
tire  Insurance  Co.,  Ltd.,  and  the  corporation  for  the  acquisi- 
tion by  the  latter  of  the  undertaking  of  the  British  Law  Fire 
Co.,  and  the  auditors'  report.  Other  formal  business  having 
been  disposed  of. 

The  Governor  said  ;  We  have  continued  to  carry  out  the 
policy  approved  by  you  a  year  ago  of  meeting  the  requirements 
of  our  friends  tothe  utmost  of  our  power,  so  as  to  enable  them  to 
continue  their  businesi>  in  spite  of  the  many  and  unexpected  risks 
with  which  all  those  engaged  in  trade  are  confronted.  At  the 
.^aine  time,  we  have  endeavoured  to  make  steady  progress  in  the 
development  of  our  various  departments  and  to  lay  the  founda- 
tions for  incre.ising  our  scope  and  sphere  of  usefulness:  so  I 
hope,  when  you  have  gone  through  the  accounts  now  laid  before 
you,  yoti  wilt  a^ree  with  me  that  the  vear  under  review  has 
been  one  of  real  progress.  Turning  now  to  the  accounts,  the  life 
a.ssurance  fund  still  reflects  the  war  conditions.  Nearly  all  the 
young  lives  are  engaged  in  fighting  of  some  kind,  so  that  new 


business  has  been  much  restricted,  and  we  consider  ourselves 
fortunate  to  have  achieved  the  resulU  which  have  been  attained, 
viz.,  a  net  increase  of  ^^42,000  in  new  business  and  nearly 
jf  8,000  in  the  total  premium  inaraie.  Further,  the  life  assur- 
ance fund  has  increased  by  over  .,^53,000,  and  now  amounts  to 
/2,754,366.  The  rate  of  interest  earned  on  the  life  fund  was 
£4  17s.  id.  per  cent.  The  fire  account  has  again  been  a  satis- 
factory one,  and  the  premium  income  shows  a  substantial  in- 
crease, which  has  been  obtained  from  business  both  at  home  and 
abroad.  To  some  extent  this  increase  is  the  result  of  the  higher 
cost  of  replacements  in  every  department,  but  it  also  represents 
a  substantial  amount  of  new  business.  The  fire  fund  has  been 
increa.sed  from  /82o,ooo  to  ;C900,ooo,  after  carrying  £li4,g9i  to 
profit  and  loss  account.  The  marine  account  shows  the  efiect  of 
the  war  to  a  greater  degree  than  any  of  our  other  departments. 
The  figures  can  only  be  called  gigantic,  and  it  is  satisfactory 
that  under  the  abnormal  conditions  the  result  attained  has  been 
so  good.  It  is  not  to  be  expected  that  after  the  war  the  marine 
figures  will  continue  on  the  same  scale  as  at  present,  and  com- 
petition also  is  likely  to  be  increasingly  severe.  We  have  in- 
creased the  marine  fund  from  ;f  1,000,000  to  ;f  1,350,000,  after 
carrying  ^239,461  to  profit  and  loss  account.  With  regard  to 
the  arcident  department,  you  will  recollect  1  told  you  last  vear 
that  the  directors  had  decided  to  push  this  department  more 
actively.  Consequently  we  established  it  as  a  separate  depart- 
ment under  its  own  manager,  and  the  result  during  the  first 
year  has  fully  ju.stified  our  expectations.  The  premium  in- 
come has,  comparatively  speaking,  been  substantiaUy  increased, 
and  we  look  forward  to  a  further  increase  as  soon  as  our  new 
manager  is  ab'e  to  develop  the  plans  he  has  in  contemplation. 
In  the  meantime,  in  addition  to  all  kinds  of  accident  business, 
the  corporation  now  undertakes  fidelity  guarantee,  third  party, 
motor-car,  property  owners,  and  personal  accident  (aircraft). 
The  fund  has  been  increased  from  ^32,220  to  £37.J97-  Turn- 
ing now  to  the  profit  a»d  loss  account,  the  result  of  the  transfers 
that  we  have  been  able  to  make  from  our  different  departments, 
together  with  the  interest  and  dividends  on  our  securities,  has 
enabled  us  to  apply  ;^ioo,ooo  to  the  general  reserve  fund,  thus 
bringing  it  up  to  ;f  650,000;  to  transfer  ;^75'Ooo  ^?  0"^  invest- 
ments depreciation  and  contingencies  fund,  bringing  it  up  to 
/300000;  to  apply  ;f  20,000  towards  writing  down  our  Freehold 
premises,  and,  after  making  the  necessary  provision  for  income- 
tax  and- excess  profits— which  this  year  you  will  notice  is  a  very 
heavy  item,  amounting  to  ;£ioo,ooo-the  a™"""^  "'J^!,1na  =.' 
ward  to  the  next  year's  account  will  be  ;i:i88,786,  showing  a 
slight  increase  over  the  balance  of  the  previous  year  We  pro- 
poL  to  the  shareholders  a  dividend  of  22  per  cent.,  fr/e  of  In- 
come-tax, being  2  per  cent,  more  than  has  been  paid  during 
recent  years,  and  which  is,  in  fact,  equivalent  to  29 ^^  per  cent., 
less  tax  With  regard  to  the  balance-sheet,  our  holding  in 
Government  securities  continues  to  increase,  and  we  endeavour 
to  invest  our  surplus  funds  as  they  become  available  in  otie  or 
other  of  the  Government  war  stocks,  in  which  our  total  at  the 
present  time  exceeds  ^2,000,000.  c-     1  •       r„tu^;^\ 

The  Sub-Governor  (Mr.  Charles  Seton  Sinclair  Guthrie) 
seconded  the  motion,  which  was  carried  unanimously. 

ROLLS-ROYCE,    LIMITED. 

ANNUAL    MKETINI;    OF    SHAREHOLDERS. 
The  eleventh  annual  shareholders'  meeting  of  this  company 
was  held  at  the  Midland  Hotel,  Derby,  yesterday,  Mr.  Ernest 
Claremont,  the  chairman  of  the  company,  presiding. 

After  the  Secretary  had  read  the  notice  convening  the  meet- 
ing the  Chairman  asked  the  shareholders  to  excuse  the  absence 
of  some  members  of  the  board,  whose  duties  of  national  im- 
portance required  their   attendance  elsewhere. 

The  Chairman  said:  'The  date  of  this  meeting  is  rather 
later  than  that  of  last  year,  for  the  reason  I  have  previously 
given— of  the  continual  expansion  of  the  business.  Just  as  at 
this  stage  last  year,  we  have  to  hold  our  meeting  without 
having  the  accounts  before  us.  It  will  accordingly  be  necessary 
later  in  the  year,  when  the  accounts  are  ready,  to  hold  another 
meeting.  We  are  fortunate,  however,  in  being  able  to  foresee 
that  the  profits  wiU  not  be  less  than  last  year,  and  to  so  con- 
clude that  the  same  dividend  can  be  safely  declared.  Beyond 
that  I  am  quite  unable  to  say  what  the  profits  will  be.  So 
far  during  the  war  our  profits  have  been  small  compared  with 
peace  times,  and  we  have  had  no  excess  profits  to  pay.  The 
delay  in  completing  the  balance-sheet  is  in  arriving  at  the 
values  of  buildings  and  plant  provided  solely  for  the  purpose 
of  the  war.  It  is  impossible  to  state  with  any  certainty  the 
ultimate  value  of  such  items  of  property  on  the  return  of  normal 
times,  and  all  we  can  do  is  to  be  as  cautious  as  the  circum- 
stances permit. 

"When  the  war  is  over,"  continued  the  chairman,  "the  com- 
pany will  find  itself  in  possession  of  premises  and  equipment 
greatly  in  excess  of  the  figures  of  191,^,  and  it  will  then  be  a 
question  of  whether  or  not  they  can  be  used  to  advantage,  and 
I  need  hardly  say  your  directors  are  fully  aware  of  the  im- 
portance of  such  points,  and  are  closely  watching  your  in- 
terests. Apart  from  the  cash  dividend,  the  directors  are  re- 
commending the  distribution  of  bonus  shares— '  share  for 
share.'  That  is  to  say  for  every  share  you  now  hold  you 
will  receive  another.  Such  distribution  is,  of  course,  sub- 
ject to  the  approval  of  the  Treasury.  You  will  understand  that 
the  distributing  of  these  .shares  has  merely  the  effect  of  declar- 
ing that  the  various  reserves  which  have  been  created  in  past 
years  will  now  irrevocabh'  be  retained  in  the  business.  Re- 
serves can  always  be  distributed  as  dividends  if  so  decided, 
but  once  such  reserves  are  transformed  into  share  capital  that 
facility  ceases.  Now  the  reserves  amount  to  ;f  186,000,  which, 
together  with  the  amount  carried  forward  last  year  of  ;f43,ooo 


March  22,  1918. 


Wi)c  Jnvestors'  IReview* 


3" 


I 


II 
I 

I 


I 


odd,  makes  a  grand  total  of  ;i^22g,ooo.  Now  all  that  money 
has  been  accumulated  by  the  company  during  the  last  seven 
years,  and  notwithstanding  that  the  company  has  since  the 
outbreak  of  war  so  far  only  earned  considerably  reduced  profits. 

CAPITALISING    RE8ERYES. 

"  Although   the   business  made   satisfactory   profits   before  the 
war,"  said  the  chairman,   "  the  shareholders  were  very  wisely 
content  with  moderate  dividends  in  order  that  by  every  year 
allotting    a    portion    of    the    profits    to    reserves    they    might 
strengthen    the    financial    position    of    the    company.     Indeed, 
by    reason    of    the   expansion   of    the    business   continually    de- 
manding   increased    working    capital,     no    other    course    was 
practicable.  '  Seeing   the   impracticability  of  distributing   these 
reserves,   the  directors   have   concluded    (as   far   as   ^'200, coo   is 
concerned)  the  best  course  would  be  to  declare  them  to  be  what 
they  have  in  fact  been  since  their  creation,  viz.,  working  capital, 
and   to  represent    them  by   shares,    which   process   is  known   as 
capitalising    reserves.     You    will    appreciate   we   should   be   no 
better  off  by  such  action,  and,  as  I  have  said,  would  be  merely 
calhng  them  by  the  name  of  share  capital  in  order  to  carry  out  our 
intention   of  irrevocably  leaving  them    in    the  business.        Each 
shareholder  will,  if  this  suggestion  he  adopted,  secure  to  himself 
his  proportion  of  the^e  leserves   which   have  in  the  past   years 
been   created,   for   he    will    receive  new   shares   to    represent    it. 
It  must  not  be   supposed   that  the  money  in  question   will  earn 
larger  profits  when  it  is  called  shares  than  when  it  was  called 
reserves.     Now,   it   is  only    practicable    to  capitalise   these   re- 
serves, because  at  the  present  time  there  is   no  emergency  for 
which  they  are  needed,  but  as   you  will  readily  appreciate  the 
.same  cautious  policy  of  the  past  is  very  necessary,  and  as  fast 
as  we  are  able  we  should  create  reserves  for  the  future,   which 
If   full   of   possibilities   for    and   against   us." 
THE  NEW  NOMINAL  CAPITAL. 
"  With  regard  to  the  nominal  capital  of  the  company,"   the 
Chairman  continued,  "  an  increase  is  necessary  to  allow  of   the 
creation  of  the  very  shares  I  have  just  been  referring  to.     They 
would  amount  to  200,000  of  £1  each,  and  as  our  capital  to-day 
IS  ^200,000,  the  figure  in  future  would  be  exactly  doubled— z.e. 
;f40o,ooo.       As  mentioned    in    the    directors'   report,     the    com- 
pany's     energies      continue       to      be      fully      engaged      on 
the      production      of      munitions      of      war,      and,       I      have 
no    doubt,     will    continue    to    be    .so    whilst    the    war    lasts.     I 
take  much  pleasure   once   more  in  expressing   on  tehalf  of  the 
board  their  appreciation  of  the  whole-hearted  effort.s.  of  the  com- 
pany's   .staff,    from    Mr.    Royce,   our  engineer-in-chiof,    and    Mr 
Claude  Johnson,  our  general  managing  director,  downwards.     I 
have  bsen  told  by  a  shareholder  that  there  is  a   rumour  of  the 
company  amalgamating  with  another  company,  and  to  prevent 
any   misunderstanding    I    should    like   to   state   that   nothing   of 
the  kind  is  in  contemplation.      I  have  also  been   asked  to   give 
.some    information    with   regard    to   our    American    works.      "We 
have  no  works   in   America,   and   are  only  obtaining   materials 
and   goods  from  that  country  to  increase  our  output.     I   wish 
I  could  tell  you  all   about  the  business,   its  expansion,  and   the 
wonderful  achievements  with   its  engines,   but  as   I  have  previ- 
ously explained,  my  tongue  is  tied.     Some  day  I  may  tell  you 
all,  and  I  am  sure  you  will  be  more  than  satisfied   and  very 
proud.  ■' 

A  cash  dividend  of  10  per  cent,  for  the  year  (less  income-tax) 
was  declared,  and  the  proposed  distribution  of  bonus  shares  was 
agreed  to.  The  retiring  directors  and  auditors  were  re  elected 
The  meeting  clo.sed  with  a  vote  of  thanks  to  the  chairman. 

MESSINA   (TRANSVAAU  DEVELOPMENT  CO. 

The  adjourned  annual  general  meeting  of  the  Messina  (Trans-" 
vaal)  Development  Co.,  Ltd.,  was  held  on  Wednesday  at 
Salisbury  House,  London  Wall,  Mr.  C.  F.  H.  Leslie  (chairman 
of   the  company)  presiding. 

The  Secretary  (Mr.  A.  A.   Kelsey,  F.C.I.S.)  read  the  notice 
^convening  the  meeting  and  the  report  of  the  auditors. 

The  Chairman,  in  the  course  of  his  remarks,  said  :  With 
regard  to  the  profit  and  loss  account,  there  is  one  new  item  in 
the  account— namely,  ^^35,000,  under  the  heading  of  deben- 
ture stock  redemption.  This  is  the  amount  which  has  to  be 
assigned  out  of  the  profits  of  each  year  towards  the  redemp- 
tion of  debentures.  If  no  profit  is  made  in  any  year,  then 
there  is  no  obligation  to  repay  debentures  in  that  particular 
year  and  it  seems  possible,  I  regret  to  say,  that  we  may  be 
in  that  position  in  November  next,  when  the  question  of  re- 
demption in  each  year  has  to  be  deciaed.  With  the  /,c,ooo 
available  for  redemption  during  the  year  ended  June  30,  1017, 
debenture  stock  for  ^41,036  was  redeemed,  and  the  amoun 
now  outstanding  ha^  been  reduced  to  ^208,964.  With  regard 
to  the  amount  earned  forward— namely,  /i^6  687— this  is  a 
very  considerable  figure,  and  it  is  only^'underihe^est  advice 
obtainable  that  we  have  adopted  this  course.  There  are  ex- 
ceptional diflSculties  in  the  case  of  this  company  in  arriving 
at  a  determination  of  excess  profits  tax,  but  we  hope  shortly 
to  be  in  a  position  to  agree  with  the  Inland  Revenue  authori- 
ties as  to  the  statutory  capital,  and,  having  done  so,  the  next 
step  will  be  to  go  before  the  Board  of  Referees.  Meanwhile 
ih.H  '"  l^"  ""fo/'f^te  position  of  not  being  able  to  tell  you 
Tew/  '^"J^j^'^'^y  belongs  to  the  company,  or  whether  it 
belongs  to  the  Government,  or  whether  it  is  pardy  one  and 
partly  the  other.  The  figures  in  the  profit  and  loss  account 
show  that,  notwithstanding  the  lower  grade  of  ore  produced 
Irom  the  mine,  the  revenue  has  not  only  been  maintained,  but 
rather  increased— due  partly  to  higher  prices  realised  for 
copper,  namely,  /143  per  ton,  as  compared  with  /112  in  the 
previous  year,  and  partly  to  an  increased  production  of  ore, 
namely,    140,000  tons,   as  compared    with    111,000  tons   in   the 


previous   year.     The  assay  value  of  the   ore  treated,  however, 
fell  from  5.43  per  cent,   to  3.98   per   cent.       In  these  circum- 
stances,  and  the  increased  cost  of  both  labour,  transport,   and 
material,  the  results  will,  I  feel  sure,  have  given  you  the  greatest 
satisfaction.     This  now   brings  me  to  the  point    at   which  we 
must  survey  the  position  since  June  30  last,  and  more  particu- 
larly to  the  question  of  ore  reserves.     It  is  a  great  disappoint- 
ment to  know  that,  although  we  have  pursued  a  vigorous  policy 
of  development,   and  have  as  a  result  of  that  policy  developed 
considerable  reserves  of  ore — namely,  an  increase  of  60,000  tons 
so  far  as  tonnage   is   concerned — yet  the  total  copper  contents 
of   those  reserves  are  only  the  same  as  at  June  30,    1916,  and 
the   grade  has  fallen  to   3.7   per   cent,    for   the  proved   ore,  and 
for  the  whole  reserves,  including  possible  ore,  to  3.5  per  cent. 
Meanwhile,  the  price  of  copper  has  fallen,  the  cost  of  transport 
to  the  markets  of  consumption  has  further  increased,  the  trans- 
port itself  has  been  and  is^very  precarious,  and  smelting  charges 
are  higher,  and  although  our  revenue  up  to  the  end  of  Decem- 
ber  last  probably  exceeded  our  expenditure  by   some   ^^25,000, 
and  there  is  some  additional  revenue  to  come  in  from  the  ore 
in  transit  at  June   30   last,    it  is  very  doubtful    to-day    if  we 
are   working    at   a   profit.     At  times   we  have   been   much    en- 
couraged by  finds  of  higher-grade  ore,  as  well  as  by  the  view 
of  Mr.   Graton — one  of  the  great  base  metal    geologists  of   the 
world — that  there  was   no  inherent  reason  why   we  should   not' 
find  as  rich  ore  in  the  lower  levels  as  in  the  upper  levels  of  the 
mine.     Yet  we  have  got   to   look   at  this  fact — that  ever  since 
the   year    1913,  although   the   tonnage  of   the  ore    reserves  has 
sometimes  shown  considerable  increases,  the  average  assay  value 
of   that  tonnage  has  shown  a  constant  fall,   from   10  per  cent, 
in  the  year  1913  to  3.7  per  cent,  up  to  June  30  last.     Since  the 
date  of  the  report  there  has  been  no  improvement  in  the  assay 
value  of  the  ore,  but  we  are  still  able  to  continue  development 
and  to  hope  that  there  may  be  a  change  in  that  condition.    We 
have,  however,  got  to  contemplate  the  unpleasant  fact  that  the 
life  of  the  mine — and  by  that  I   mean  the  profitable  life  of  the 
mine — may    be  approaching  its  end.     I   have   purposely    put  to 
you  what   I   consider    to  be  an  unfavourable   view   of  affairs, 
because  I  do  not  know — in  fact,  no  one  knows — in  what  respect 
we  may   expect  any  betterment  of  the  position.     On   the   other 
h^d,  should  we  be  compelled  to  stop  operations  altogether,  we 
have  large  liquid  assets,    easily    realisable,   and   it  might   well 
turn  out,  after  the  adjustment   of  the  many  outstanding  ques- 
tions, due  principally  to  war  taxation,  that  there  will  be  some 
considerable  fund  available  for  the  shareholders  after  meeting 
all  the  company's  liabilities.     In  these  circumstances,   it  is  the 
policy  of  the  board  to  carry  on  the  operations  at  the  mine  with 
a  view,  if  not  to  profit,  at  any  rate  to  the  opening  out  of  addi- 
tional  ore   reserves.     He  concluded  by  moving  the  adoption  of 
the  report  and  accounts. 

Mr.  R.  J.  Frecheville.  M.Tnst.C.E.,  seconded  the  resolution, 
which  was  carried  unanimously. 

ILLUSTRATED    LONDON    NEW8.AND 
SKETCH. 

The  nineteenth  ordinary  general  meeting  of  the  Illustrated 
London  News  and  Sketch,  Ltd.,  was  held  on  Thursday,  at 
Winchester   House,   Mr.   Charles  L.   N.    Ingram  presiding. 

The  Chairman  said  :  We  have  not  been  able  to  show  you 
such  a  good  balance-sheet  this  year  as  we  did  last  year,  but 
it  was  quite  beyond  the  power  of  the  board  to  obviate  this.  The 
paper  question  has  affected  us  most  seriously,  as  has  also  the 
cost  of  other  materials  and  of  labour.  Paper  alone  has  cost  us 
many  thousands  of  pounds  extra.  I  consider  that  we  have 
managed  to  weather  the  storm  very  satisfactorily,  and  if  it 
had  been  a  normal  year  you  can  easily  understand  what  a 
splendid  balance-sheet  we  should  have  had.  With  regard  to 
the  future  it  is  impossible  for  me  to  say  anything  definite.  I 
see  no  prospect  of  the  price  of  paper  going  down,  or  the 
cost  of  materials  or  labour,  and  until  the  war  is  over  I  am 
afraid  we  shall  have  to  encounter  very  great  difiiculties.  The 
advertisement  revenue  has  increased  by  several  thousands  of 
pounds,  but  when  the  cost  of  paper  and  other  things  is  taken 
into  account,  the  advertisements  really  hardly  cover  the  cost 
to  us. 

Mr.  G.  J.  Maddick  said  :  At  first  sight  the  result  is  perhaps 
a  little  disappointing,  but,  having  regard  to  the  cost  of  paper 
and  other  materials,  it  is  a  wonder  that  we  have  been  able 
to  make  any  profit  at  all,  much  less  the  substantial  one  of 
over  ^28,000.  I  think  it  speaks  volumes  for  the  stability  and 
popularity  of  your  two  great  papers  that  your  directors  are 
in  the  pleasant  position  of  being  able  to  inform  you  that  the 
revenue  of  each  paper,  from  both  circulation  and  advertise- 
ments, has  increased  by  very  many  thousands  of  pounds.  The 
Government  have  thought  it  necessary  to  curtail  very  con- 
siderably the  amount  of  tonnage  they  are  going  to  allow  for 
the  import  of  paper  and  paper-making  materials  into  this 
country.  That  is  going  to  cause  the  paper  mills  to  work  less 
time,  and  their  output  will  be  considerably  lessened,  and  I 
fear  that  if  any  of  them  have  a  surplus  there  will  be  a  wild 
sciamble  amongst  newspaper  proprietors  to  obtain  even  this 
small  quantity,  absolutely  irrespective  of  cost.  We  are  users  of 
a  colossal  amount  of  paper,  and  every  rise  in  the  paper  market 
is  a  very  serious  thing  for  us.  It  is  unfortunate  from  the 
balance-sheet  point  of  view,  but  it  is  an  exceedingly  fortunate 
thing  for  our  future  prosperity,  that  our  consumption  is  so 
large,  because  when  this  war  ends  we  shall  be  in  a  position, 
I  trust,  to  retain  our  popularity  and  the  friendship  of  our 
readers,  and  we  shall  be  well  on  towards  the  prosperity  that  we 
have  enjoyed  in  former  years. 

The   report  and   accounts    were   adopted,    and    Mr.    Maddick 
was  re-elected  a  director. 


3" 


Zbc  investors'  IReview. 


March  23,  1918. 


INDIAN  RAILWAYS. 


MONTHLY    STATEMENTS. 


Name. 


AtMm  Bengal 
BarsI 

Ban|t«l  «k  N.-W.     .. 
Bengal  Nagpur 
Bombay,  Baroda  .. 
B  rma 

Delhi  Umballa       .. 
Bast  Indian.. 
Gt, Indian  Panin.  .. 
Luoknow-Bareilly. . 
Madras      and       S. 

Mahratia  .. 
Niiam'sGd.  (Broad) 
,,        „     (Metre) 
Ronilkund  and 

Kumaon  .. 
South  Indian 


ORoas  TRArric  roa  wiir. 


Week 

ending 


Ian. 

3S 

Feb. 

i 

Ian. 

26 

Feb. 

a 

Mar. 

2 

Jan. 

5 

Mar. 

1 

,, 

16 

2 

Ian. 

26 

J, 

>9 

tt 

•9 

>l 

19 

„ 

26 

,, 

19 

Amount 

"    Ra". 

166,613 

28,700 

3,01,000 

10,48,000 

13,18,000 

4,88.919 

92.700 

22,34,000 

24,55.700 

54.359 

9,30,000 
1,40,648 
1,00,138 


n.  or  dee. 

on  laat 

year. 

'  K.~ 

■  30,132 

-  29,600 

■  71, 130 

1,000 

-  31,000 

■  ",523 

■  21,764 

—  3,40,000 
+  2,09,100 

—  7,216 

—  79,295 
12,421 

—  10,361 


oROta  TRArric  to  date. 


56,701    —      2,290 
3,66,196  —      4,038 


Amount 

~~Ri.  ' 

33,06,302 

7,03.500 

63,93,753 

4.53,96.952 

3,14,43,000 

1,38,86,620 

20,27,086 

3,38,31,000 

4,88,99.753 

8,20,169 

1.59.27,643 
20,03,604 
13,08,102 


t  700,330  +       57.477 

t     1.02,91,924  +    6,32,036 


la.  or  dec 
on  laat 
jTMr.  _ 
Rt. 

+  1,37,061 

—  s,io,8oo 

—  6,60,312 
+  36,02,366 

—  6,04,000 

—  85.397 
+  2,66,315 
+  14,38,000 
+  29,28,048 
+   83,175 

+  10,02,877 

—  5,002 
+    8,671 


t  April  I. 

t  Octobei 

I. 

TRAMWAY  AND  OMNIBUS.— HOME 

. 

Dublin  UBited       .. 

Mar.   1 

7.305 

+    1.364 

} 

61,814 

+       11,088 

HaatiDgaand  Dlst.. 
Isle  el  Thanet 

,,    Jl 

Feb.  23 

1,093 

+       124 

10.521 

+             840 

170 

—       52 

* 

3.587 

—         1,612 

Lanoshire  United.. 

Mar.  13 

2,596 

+      815 

t 

25,880 

+         8,124 

Provinoial    . . 

Jan.  25 

2,479 

+      729 

* 

35,274 

+         5,569 

Yerks.  (Wst.  Rdng.) 

Mar.  17 

2,258 

+       »30 

t 

25.665 

+         5,962 

♦  From  Oct.  i.  t  From  Jan.  i. 

TRAMWAY  AND  OMNIBUS.— FORblGN   AND  COLONIAL. 


Alabama  Power  .. 
AnglO'Areentine  . . 
Auckland  Electric. . 
Brazilian  Traction  . 
Brisbane  Elec.  Inv. 
British  Columbia  .. 
B.A.  Lacroze 
Burmab  Electric  .. 
Calcutta 
Carthagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &T 

Hongkong   .. 
La  Plata 

Lima 

Madras  Electric    ,. 

Manila  Electric... 

Mexico 

Rangoon 

Singapore  Electric 

Toronto 

United  of  Monte  V. 

Vera  Cruz    . . 

Winnipeg    . . 


Jan.  i 

Mar.  18 
Oct.  26 
Jan.  i 
Oct. 
Dec.  i 
Feb. 

..     b 
Mar.  x6 

Feb.     b 

Jan. 

;; ''' 

Mar.  13c 
Aug.  8 
Nov.   I 
Feb.   J 
Dec.  29 
Nov.    I 
Feb. 
Dec.   i 
Nov. 


£ 

129,919 
56,612 
22,308 

M3.C96,oos 

33,580 

»i67,333 

34,397 

Rs.22,9d5 

Rs.75,884 

4>03« 

12.845 

12,272 

4.7" 

22,519 

Rs.  39.530 

65,467 

1215,256 

5.662 

t I 3.201 

»42'i,556 

34.573 

51,000 

186,888 


£ 

Ms. 

+      19,173 

I 

+       3.781 

♦ 

+          880 

a 

—  M  306,000 

I 

+            820 

10 

+     130,967 

*) 

—        1,580 

a 

+  Rs.     73 

— 

+  Rs.7,214 

* 

+          808 

♦ 

+          413 

10 

-     •1,368 

* 

+           396 

12 

+        5,211 

I 

+  Rs.5.363 

♦ 

+    ■    4,667 

8 

-•108,669 

* 

+        1,057 

+       •",173 

-      •8.753 

II 

+         2,26s 

4 

— 

12 

-     »I4.744 

II 

c 
129,919 
594,671 
92,118 

M3, 696,000 
328,420 

•599,797 
303,775 
157.522 

Rs7,2i,67i 

8,042 

134.966 

•35.883 

48,96a 

22,519 

Rs. 188,724 

547.492 

$3,193,106 

11,023 

•668,805 

•5.032.  "76 

135,674 

618,000 

•748,976 


£ 

19,173 

38,937 

7.832 

—  M3o6,ooo 

—  2,000 
+     •60,091 

—  1,239 
+  Rs.  217 
+  Rs.35,i99 

+  837 

—  641 

=  '^-^ 
+         3,211 

+  RS.20,620 

+      70,625 

—  •197,227 

+      1.783 

+  •11,901 
+  •239.  IJ3 
+       10,261 

_  •327,782 


iaS  dajrs.       •  From  Jan.  i.      {  Nett.       a  From  July  i.      c  Two  weeks. 

FOREIGN  RAILWAYS. 


Alcoyand  Gandia 
Antofagasta    tChili) 
Arauco 

Argentine  N.B.      .. 
Bilbao  R.  and  Caota 

Bolivar 

Brazil 

Brazil  Gt.  Southern 

B.  Ayres  &  Pacific 
Do.  Central 
Do.Gt.South'n 
Do.       Western 

Central  Argentine. 

C.Ur'g'ayofMto  V. 
Do.  East'nEx. 
Do.Nortb'nEz. 
Do.  West'n  Ex 

Cardoba  Central  .. 

Costa  Rica  . 

Cuban  Central 

Dorada  Extension.. 

Egyptian  Delta 

Entre  Rios  ., 

French  Same  Pi 

Gt.  South,  of  Spain 

Gt.West.  of  Brazil. 

Havana  Central    . , 

Inter,  of  C.Amer... 

La  Gualra  and  Car 

Leopotdina.. 

Mtdlaud  Uruguay . . 

Mogyana 

N.w.  of  Uruguay  .. 

Nitrate 

Paraguay  Central  . , 

Paullsta 

Peruvian  Corpn    , . 

Salvador 

State  of  Bahia  S.W. 

S.  Paulo  (Brazilian) 

Sorocabana.. 

Taltal 

United  of  Havana.. 

West'n  of  Havana.. 

Zafraand  Huelva. . 


Mar.    9 


Ps 


Jan. 

Mar. 

16 

Feb. 

♦ 

Nov. 

* 

. 

Mar. 

16 

Ian. 

Mar. 

17 

,, 

17 

,, 

l6 

,j 

16 

,, 

16 

,j 

16 

,, 

16 

,, 

16 

Jan. 

19 

Mar. 

16 

Feb.  ♦ 

Jan.  31 

Mar.  16 
Aug. 

Mar.  9 
16 

Feb.  23 

.,  c 

Mar.  16 
Feb. 
Nov. 
Feb. 
Mar.  15 
.,     16 
Nov.     * 
Feb.     • 


23 


Mar. 
Dec. 
Feb. 
Mar. 

Jan. 


£ 

9,000 

46,060 

14,000 

10,300 

2.953 

..       9.500 

M4,746,ooo 

Ml3.44,o50 

145,000 

29,421 

153.000 

76,000 

173,000 

2 1.961 

6,214 

3.704 

2,848 

40,000 

3.996 

36,218 

7,400 

11.173 

21,600 

132,000 

32,015 

2i,aoo 
11,079 
24.247 
5.500 
29.968 

10,000 

M2, 242,000 

•23,000 

34.871 

j,o8o 

M3, 506,000 

8925,410 

•3,112 

M76.OO0 

„      2J,797 

Ma, 107,000 

22,29s 

93,769 

12,838 

10,923 


Ps. 


£ 

2,000 

11,390 

2,000 

3.300 

655 

639 

M  56), 379 

M850 

63,000 

8,949 

33,000 

33,000 

77.000 

8,231 

617 

566 

982 

9,020 
2,749 

1.579 
1,400 
3,595 
1,000 
29,099 


-P368,8«3 
+  8,300 
+        3,208 

—  9,386 

—  3,500 
+        5,886 

—  3.280 
+  M  222,440 
+     •1,202 

+  2,2(8 

+  330 
+  M  589,750 
+    880,640 

"^•'■°" 

—  M25,ooo 

+        6,co6 

+  M224,2o6 

+  5,348 

+  31.307 

+  4.562 

+  782 


£ 
Ps.  89,900 

376,535 

i4,oeo 

308,400 

8,062 

89,236 

M  45353000 

M471.527 

3,110.000 

175,607 

3,990,705 

1,763,000 

3,736,200 

663,057 

181,986 

116,430 

61,203 

1,077,980 

81,054 

668,096 

15.700 

240,609 

544.200 

900,336 

Ps. 305, 276 

210,100 
280,549 
47.671 
13.750 
355.719 
104,920 

M  21669,000 

$212,065 

142,664 

106.310 

M  30654,000 

88,203,030 

•57,556 

M  190,000 

384,957 

M  16,988 

104,286 

1,938,840 

307,301 

'0,923 


£ 
Ps. 16,170 

+      5.305 

+  2,000 

+     63,298 

433 
+  19.230 
+  M5238971 
M5i,057 
104,000 
4,155 
206,549 
119,000 
214,200 
187,772 
8,063 
30,171 
11,821 
5.380 
66,253 
I3>.447 
2,300 
57,320 
109,500 
173.429 
Ps.675164 
58.250 
51,497 
17,585 
4,250 
94.238 
4.110 
+  M247,7H 
+     »I9,748 

+  18,174 
+  13,860 
4Ml436l38 
+  8917,638 

—  $6,350 

—  M33,ooo 
+  139.775 
+  M1735205 
+  56.904 
+  478,796 
+       83,683 

+  7'2 


•Months,  t  From  Jan.  I.  t  From  July  I.    c  Nett.    6  ij  days,    aiodays. 
COLONIAL  RAILWAYS. 


iMn.. 

Ceoadian  Northern 
Canadian  Pacific 
Gc.Trk.  Main  Line 
Gr.  Trk.  Western . , 
Detroit  G.  H.  &  M. 
GrTkPac  Prairie  So 
Mashonaland 
Mid.  of  Weatn.  Aus 
New  Cape  Central. . 
Rhodesia 

•  Month! 


Nov.  >c 

Mar.  14 

,.    '4 

,1    14 

..    14 

.1    »4 

.1    14 

Nov.  • 

Jan     • 

Feb.  a 

Dec.  •£ 


£ 

36,698 

•  733,000 

92,496,000 

189.699 

32.754 

10,880 

5^,69^ 
9.296 
8,321 

ja,"o 


£ 

—    1,486 

—  (5, 200 
-•174,000 
+        17.899 

—  2,585 

—  1,605 
+  5,196 

—  >,486 
+  790 
+  672 

2.472 


t  July  I.         «  Jan.  t. 


£ 

124.329 

♦28,662,500 

•23,222,000 

1,610,378 

312,089 

108,261 

23i.6<4 

56,698 

52,517 

11,286 

269,403 


t  From  Got.  i. 


+  8,374 

+  •432,500 

+  $867,000 

-  136,964 

-  17.289 

-  ^5.9»7 
+  64,267 

-  1,486 


MAys 

RETT  EARRIMOS  ROR   UOKTR. 

RETT  EARHIRtMTODATS. 

Month. 

Amonnl. 

In.  ot  Dec. 
on  last  year 

IS 

Amount. 

In,  01  Dae. 
on  last  year 

Dolt. 

Dols, 

Dolt. 

Dolt. 

Atchison  T.  ft  S.  F« 

Dec. 

3.343.0'0 

f    240,000 

12 

47,829,000 

—  1,248.000 

Allanllo  Coast  Lint 

,, 

2,036.000 

+    420.000 

12 

12,014,000 
30,588.000 

4-     607,000 

Baltimore  &  Ohio  .. 

,, 

1,851.000 

—  1,165.000 

12 

—  3,425,00s 

Canadian  Northern 

,, 

65.300 

—    758,500 

6 

3.335. 'OO 

—  2,961,000 

Canadian  Pacific  .. 

Jan. 

1.168,000 

-1,263,000 

1 

i,i6«,aco 

—  1,163  000 

Chesapeake  &  Ohio 

Dec. 

1,238,000 

+      44,000 

12 

14.099,000 

—  1,4'0.00» 

Chicago  4  N.W.    .. 

,, 

3,711,000 

+      10,000 

12 

27,015,000 

—  3,634.000 

Chicago  Burl,  ft  Q. 

Nov. 

1,642,000 
388,000 

—2,031,000 

11 

31,281,000 

—  3,956.000 

Chicago  G.W. 

Dec. 

—     11,000 

12 

3,876,000 

—  1,006,000 

Chicago  Mil.  ft  S.P. 

^, 

892,000 

-1,726,000 

12 

22,026,00c 

—  9.338,000 

Chicago,  Rock  I.&P. 

J, 

1,362,000 

—   419.000 

It 

17,823,000 

—  2,953,000 

Colorado  ftSouthern 

Nov. 

444,000 

—   233.000 

II 

5.320.000 

+     370,000 

Cuba 

Dec. 

363.000 

h     311,000 

6 

i,i36,oao 

+     153,000 

Delaware  ft  Hud.  .. 

,, 

4,000 

—    509,000 

12 

S.686.000 

—  2,124,000 

Denver  ft  Rio  Gran. 

1, 

296,000 

—    424,0(0 

12 

7,418.000 

—  1.963,000 

Bcie 

,, 

507.000 

+  1,848,000 

12 

10,538.000 

—  5.277.000 

Gr.Tr.  Main  Line.. 

Nov. 

£86,200 

—  £128,600 

11 

£1,907,300 

—  £627 ,90* 
-£139.050 

Grand  Trunk  Wesin 

,, 

*  £'5.650 

—    fi«o 

11 

£23,200 
£67,700 

DeiroitG.H.ft  Mil. 

^^ 

— 

—     ft.i^a 

11 

-    £99.900 

Gt.  Northern 

Dec. 

1,165,000 

—1,401,000 

12 

22,9^7,000 

—  6,179.00a 

Illinois  Central     .. 

Nov. 

1,466,000 

—   409.000 

11 

17.538,000 

+  2,590.000 

Kansas  City  Southn 
Lehigh  Valley 

Dec. 

294,000 

—     80,000 

12 

4.495,000 

+     369.000 

Nov. 

628,000 

—   376,000 

11 

9,240,000 

—  2,410,000 

LouisvilleftNashvl 

^^ 

1,296.000 

—    178.000 

11 

16,949,000 

—    836,000 

Minn.  S.P.  (Soo)|,. 

Oec. 

357,000 

—  297,000 

12 

9,331.000 

-  3,648,000 

Miss.  K.  ft  Texas  . 

„ 

912,000 

+    126,000 

12 

8,303,000 

+  2.573,000 

Missouri  Pacific    . . 

Nov, 

1,690,000 

+    321,000 

5 

9  425.000 

<-  1,920,00a 

New  York  Cent.ftH 

2,939,000 

-1,742,000 

'1 

45.O49.0«) 

- 13333. °no 
—  i,W5,ooe 

N.Y.N.  Haven  4  H. 

^j 

1,469,000 

—  60a,  00 

11 

19.597 -aoo 

New  York  Out. ft  W. 

Dec. 

111,000 

—     26000 

12 

2,228,000 

-        97.MO 

Norfolk  ft  Western 

1,28  ,000 

—   200,000 

12 

19,654,000 

—  3,808,000 

Northern  Pacific   .. 

M '4.000 

—1,832,000 

12 

27,423.000 

—  4,110,000 

Pennsylvania    East 

and  West  Lines.. 

Jan. 

5,940,000 

—1 1072000 

I 

5,9(0,000 

—  11072,000 

Phil,  and  Reading  . . 

Nov. 

1,064,000 

—1,199,202 

11 

14,877,0.x) 

—  6,626,000 

Reading 

577.033 

»■       3,826 

11 

9,iso6.ooo 

+     212,860 

St.  Louis  &  San  F. . 

^j 

1.304.000 

+     353  .oou 

5 

8,969,000 

+  i,o93.ooo 

Seaboard  Air  Line.. 

Dec. 

673,000 

-     206,000 

12 

8.628,000 

—        24,000 

Southern      .. 

2.953.000 

+     241,000 

b 

14.753.ouo 

+  2,098,000 

Southern  Pacific   .  ■ 

Nov. 

4,465,000 

— 1,038,000 

11 

55,577  ,»oo 

+  7,255,000 

Union  Pacific 

Dec. 

3,247.000 

+     197,000 

12 

42,942,000 

-2,115,000 

Wabash 

" 

316.000 

—1,026,000 

12 

12,003,000 

—     844, oeo 

4,003 
1,356 


I  InolodoaWUconsin  Central.    •  Gross  earnings,    t  Surplus.    *  DeficU. 

Answers  to  CoprespondentSt 

*.*  A  Koy  to  these  Answers  will  be  posted  early 
each  week  for  a  subscription  of  ONB 
GUINEA  per  annum,  lis.  for  six  months,  or 
Bs.  9d.  for  three  months. 
Deposits  against  future  queries  may  be  lodQed 
with  the  Publisher. 

Francis.— An  old-established  company,  but  these  shares  are 
not  worth  28s.  premium  as  an  investment.  Both  6  per  cent. 
debentures  and  preference  shares  stand  ahead  ot  them,  and  the 
property  is  not  prospering. 

G.  W.  T.  (Li.sburn).— Yes,  they  are  worth  buying  if  you  are 
prepared  to  wait.  I  cannot  promise  you  any  good  hints  at  the 
moment,  but  will  bear  your  request  in  mind. 

W.  G.— (i)  No  returns  have  been  published  for  some  time, 
but  reported  to  be  doing  fairly  well.  A  fair  speculative  purchase 
if  prepared  to  wait.  (2)  Purely  a  gamble,  with  perhaps  some 
chances.    Meeting  shortly,  which  may  give  more  definite  news. 

Stocks.— (i)  Quite  a  fair  industrial,  with  prospects  of  con- 
tinuing to  do  well  after  the  war.  (2)  Yes,  limited.  Doing  well 
at  present,  like  others,  but  impossible  forecast  position  after 
war  Previous  record  not  brilliant.  Should  not  recommend  a 
purchase.  (3)  War  situation  affecting  market.  Property  good, 
but  should  be  inclined  to  wait  until  situation  is  clearer.  (4) 
Doing  wonderfully  well,  and  has  done  so  all  through  the 
troublous  times.  Premium  high,  but  see  no  reason  to  anticipate 
a  fall,  rather  the  reverse.  (5)  Quite  good,  and  interest  safe, 
but  do  not  expect  to  see  any  rise  in  value  for  some  time.  Com- 
pany is  very  prosperous.  (6)  Assets  show  a  considerable  margin 
over  the  present  price,  but  stock  about  high  enough  on  its 
present  yield.  (7)  We  do  not  think  you  should  increase  your 
holding.  Doing  well  just  now.  SeU  if  any  rise.  (8)  The  best 
of  all  the  issues,  but  value  affected  by  politics.  There  is  special 
security  for  the  bonds,  which  we  cannot  think  will  be  destroyed. 
Might  be  held. 

F.   C.   E.— Quite  good. 

M_  J.  G. — (i)  We  cannot  advise  purchases  in  this  section  now. 
although  those  producing  are  likely  to  do  well  for  the  present. 
(2)  This  company's  position  is  .strong,  and  its  shares  are  quite 
a  fair  purchase  of  their  class. 

Sutton.— Y'es,  for  the  present,  at  any  rate.  There  are  rumours 
of  a  bonus  on  the  first. 

L.  O.  A. — The  reports  just  issued  are  good,  and  prospects  are 
encouraging.  They  are  all,  of  course,  liable  to  sudden  fluctua- 
tions. They  should  be  placed  2,  i,  4,  3;  perhaps  it  would  be 
as  well  to  leave  out  the  last  one. 

Denes.— They  have  been  heavily  hit  by  the  war.  We  do  not 
think  you  should  sell  now,  as  there  may  be  some  relief  given 
to  their  present  position.     Both  are  well  managed. 

N.  F.  R. — The  inclination  has  much  in  its  favour,  and  we 
do  not  think  you  would  be  rash  in  following  it.  Midland  might 
be  added.  . 

E.  P.  D. — We  think  not,  as  you  could  not  replace  them  with 
anything  as  good  paying  .so  well. 

Bray. — Both  are  quite  good  securities,  and  the  interest  safe. 


Printed  by  the  Si.  Climemts  Presi,  Ltd.,  Portugal  Street,  KInstway,  London,  W.C,  for  the  Proprietor  of  1  he  Ikvestors'  Review,  and  PnbUshed 
by  T««  PaofRiBTOR,  Norfolk  HouteTNcrlolk  Street,  Strand,  WC.  a.— March  ej,  igiS.  (N  at}} 


XTbe 


Snpeetote'  IRevfew 


FOUNDED    BY    A.     i/.     WILSON,     FEBRUARY,     1892. 


Vol.  XLI.— No.  1,056.] 

HBW  SERIES. 


rRegiitered  as  a") 
L    Newspaper.    J 


SATURDAY,  MARCH  30,  1918. 


[Price  6d. 


CONTENTS. 


Passing  Events : — National  War  Bond  Sales  —  Revenue  — 
Belgian  Note  —  Helping  the  Russians  —  Japan  and 
Manchuria  —  Australian  Finance  —  Egyptian  Budget  — 
Dutch  Merchant  Vessels  —  Swiss  Bank  Corporation  — 
Maypole  Dairy  —  Lion  Brewery  (pp.  315-8). 

Leading.  Articles: — Departmental  Confusion,  Muddle,  and 
Delays  —  Committee  on  National  Expenditure  — 
Uruguayan  Notes  —  Income-Tax  Guides  and  Lessons  — 
By-the-Way  War  Notes  (pp.  318-20  and  p.  321). 

Insurance  News  :  —  United  Kingdom  Temperance  —  Union 
Marine  —  Scottish  Insurance  —  American  Fire  Losses  in 
February  (p.  320). 

Money  and  Credit  Notes : — Calm  Market  —  Uruguay  Bonds 
Requisitioned  —  Favourabl  Exchange  Movements  —  Bank 
of  Montreal  Absorbs  British  Bank  of  North  America  — 
Death  of    Mr.  David    George  (Bank  of   New  South  Wales) 

—  Tees  Power   Station  Issue  Result  —  Whitehead  Aircraft 
(1917)  —  Silver  (pp.  322-3). 

American  Business  Notes ; — United  States  Control  of   Railways 

—  Third  "Liberty"  Loan  (p.  325). 

Oilfields  Production  (p.  320). 
Books  Received  (p.  321). 


Mining  News : — West  African  Gold  Output  —  New  Sharlston 
Collieries  —  Cardiff  Collieries  —  Rietfontein  West  .  ease  — 
South  Crofty  Mine  —  CJopeng  Consolidated  —  Tekka- 
Taiping  (pp,  326-7). 

Tea,  Oil,  and  Rubber :— Rubber  Market  —  Labu  (F.M.S.) 
Rubber  Co.  —  Pegoh,  Ltd.  —  Devon  Estates  (Malacca) 
(p.  327-8). 

What  Balance  Sheets  Tell :— D.  H.  Evans  and  Co.  —  Bank  of 
Victoria  —  Australian  Bank  of  Commerce  —  Merry  and 
Cuninghame  (p.  329). 

Company  Meetings  : — British  Insulated  and  Helsby  Cables  — 
Broadwater  Rubber  Estate  —  Gula-Kalumpong  Rubber  (pp. 
329-30). 

The  Week's  Stock  Markets  (pp.  323-4). 

London  Produce  Markets  (pp.  3J4-5). 

Public  Income  and  Expenditure  (p.  326). 

The  Week  in  Mines  (p.  326). 

Dividends  Announced  (p.  328). 

Company  Results  in  Brief  (p.  329). 

Answers  to  Coiresjjondents  (p.  329). 

Traffic  Returns  (p.  331). 


I 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  OHice :  15,  Gracechurch  Street,  London,  E.C.  3. 

THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the  Imperial 
Japaneie  Government,  1899. 

Capital  Authorised         £1,500,000 

^         Capital  Issued      1,125,000 

HEAD  OFFICE      -      .     TAIPEH,   FORMOSA. 

■          CapiUl  Paid  Up 562,500 

»          Reierve  Fund      600,000 

BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton.  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 

Branches  i 

INDIA.  BURMAH.   CEYLON.    STRAITS   SETTLEMENT* 

CHINA.    AND    PORT    LOUIS.    MAURITIUS. 

The  Bink  huyi  »nd  sells  Bills  of  Exchange,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business   in  connection  with 

the  Kast,  on  terms  to  be  had  on  application. 
DBPDSIT8  receired  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 

On  ourrant  nooounta  interest  Is  allowed  at  1  percent,  per  annum  on 

THE  YOKOHAMA  SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1880. 

THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital  £4,000  000 

Paid-up  Capital 1,800.000 

Re&erve  Fund    8,000,000 

■RANCHFS— 

ARGENTINE.  —  Buenos    Aires,    Rosario.    Mendoza,    Concordia,   Bahia 
Blanca,  Cordoba.   Tucuman,    Harank    Barracas  (Buenos   Aires),   Once 
(Buenos  Aires     Boca  (Buenos  Aires),  Calle  Sana  Fi  (Buenos  Aires), 
Calle    B    de    Irigoyen    (Buenos    Aires)       URUGUAY.— .^  ontevideo, 
Montevideo    Agency    (Calle    Rio    Negro),    Paysandu    (Agenc  ),    Sallo 
(Agency).        BRAZIL  —Rio    de    Janeiro     Sao    Paulo,    Santos,    Per- 
nambuco,  Hara,  Bahia,  Victoria  Curityba,  Manaos  (Agency).     CHILI— 
Valpaijiso,  Santiago.      FKANCE-Paris  (16  Rue  Halevy).     Agency  in 
New   York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 

advanced  upon  or  sent  for  collection.— 7,  Princes  Street,  E.C.  2. 

Sabierlbed  Capital        Tan  «,000,000 

Capital  Paid  Up Tan  36,000,000 

Reierve  Fund         Ten  22,100,000 

Head  Office :  YOKOHAMA. 
Brancha  and  AgmtUs  at                      Shanghai. 
Bombay.                         Honolulu.                  Newchang.                    Shimonsekl. 
Calcutta.                        Hong  Kong.              New  York.                    Singapofe. 
Changchun.                    Kobe.                         Osaka.                            Sydney. 
Dairen  (Dalnjr).             Los  Angeles.            Peking.                          TieniMi. 
Fengtien  (Mukden).       Lyons.                       Rang  on.                       Tokyo. 
Hankow.                        Manila                      San  Francisco.              T^ivuAn. 
Harbin.                          Nagasaki.                  Seattle.                          Tsingtau. 

The  Bank  buys  and  recaiTts  (or  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  tran.^acts  General  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtaint  i  on  apnlicatica. 
London  Office  :  7,  BISHOPSGATE.  E.C.  t. 

K.  TATSrUI,  M«aa<»r. 

HONGKONG   AND    SHANGHAI    BANKING    CORPORATION. 

Capital  (all  paid  up) •  _  $15  000  000 

LBffJil"L™fi^"' ''"''' "  ^°"'^°"  »'  ««'>»"8«  of  «■•  Pef  »  =  «>.Miwlw''        '.'.                 '.'.    $18,000,000         '      ' 
niiier  Keterve $18,MO,000    «31^00,00« 
ReuryB  Liability  of  Proprletori tll,000,<00 

BRANrHFC!    ANn    Arpvrrpc        HEAD    OFFICe-HONGKONQ.    ChiefManager-N.   J.'  STABB. 
T.,«hi^wr  !?,>,.  /Hi^oAv     1?    ,,■  ~ '^""''V  Bangkok,  Batavia,  Bombav,  Caloutu.  Canton,  Colombo,   Fjoohow,  Hankow,  Harbin,   Hongkew    (Shaofhat), 
ISrigiSt  Sio«aP-e,'l!ra'bay'i!"TlemS,nrTiing?a"o^^^  "^'"'"'  '^'«"*'"'  ""^^  ^""''   P""""*'   P"*"*'  '^~°-  ^°"-  "^   ■""^"* 

UPNBV  Kvvaiic-v  c.    M  D  i  .....  „  LONDON  COMMITTEE : 

HENRY  KESWICK,  Esq.^M.P.  |  WM.  GAIR  RATHBONE,  Esq,  1  J.  R.  M.  SMITH,  E«q.         -  A.  M.  TOWNSEND,  »«q. 

,.  m  .  SIR  CHARLES   ADOIS.  1  ..  ,    ,      j  JOHN  MacLENNAN,  Sub-Ua>>a(«r. 

_  G«*c«oi««Re»  8tii»»t,  Io»»ow,  E,C.  |,  H;.d..C;  JOnIs,  '  }**»*!f^:»'?J''?°*»'  W.  14.  BLACKIE,  AcooMUntr^  . 


3I4 


Zbc  Jtiveetore'  IRevtew. 


March  30,  191 8. 


BANKS. 


CHARTERED  BANK  OF  INDIA, 
AUSTRALIA,  AND  CHINA, 

38,  Bishopsgate,    London,  E.G.  2. 

Incorporated  by  Royal  Charter. 


Capital,  £1,200,000.     Reserve  Fund,  £1,900,000. 


Court  of  Dlreotorn. 


SIR  MONTAGU  CORNISH 

TURNER,  Chairman. 
SIR    HPNRY    S.    CUNNINGHAM, 

K  C  I  E 
THOMAS  CUTHBERTSON,  Esq. 
SIR  ALFRED  DENT,  K.C.M.G. 

ManagersiT.  H.  WHITEHEAD  and  W.  E.  PRESTON 
Sub-Hanager:  J.  S.  BRUCE. 


WILLIAM       HENRY       NEVILLE 

GOSCHEN,  Esq. 
The   Right    Hon.  LORD  GEORGE 

HAMILTON,  G.C.S.I. 
WILLIAM  FOOT  MITCHELL, 

Esq. 

LEWIS  ALEXANDER  WALLACE, 
[Esq. 


Bankers  : 

THE    BANK    OF    ENGLAND. 

THE    LONDON    CITY    AND    MIDLAND    BANK,    Limited. 

THE    LONDON  COUNTY  &  WESTMINSTKR    BANK.    Limited. 

THE    NATIONvL    PROVINCIAL    B^NK   OP   KNQLAND.    Limited. 

THE    NATIONAL    BANK    OP   SCOTLAND,    Limited. 


The  Corporation  buy  and  receive  for  collection  Bills  of  Exchange,   grant 
Drafts  and  transact  general  banking  business  connected  with  the  East. 

DEPOSITS  OP  MONEY  are  received  for  fixed  periods  on  terms  which 

may  be    ascertained  on  application.      Interest  payable   ball-yearly, 

30tb  June  and  31st  December. 


THE   BANK   OF 
BRITISH    NORTH    AMERICA. 


Established  1836. 


INCORPORATED  by  ROVAL  CHARTER  1M0. 


PAID-UP  CAPITAL    ..     f  1,000,000.  RESERVE  FUND     ..     ^620,000. 

Head  Office:-;,  GRACECHURCH  STREET,  LONDON,  E.C. 

1    *                                   Court  of  Dinclors. 
Lt.-Col.F.R.  3.  BALFOUR.  Lieut.  E.GEOFFREY  Hon.  A.  R.  MILLS,  M  P. 
J.  Hi  BRODIE.                           HOARE.R.N.V.K.    MajorC.  W.TOMKINSON. 
J.  H.MAYNE  CAMPBELL.  F.  LUBBOCK.  G.   D.   WHATMAN. 

E.  A.  HOARE. 

Deposits  received  at  rates  which  may  be  obtained  on  application, 

Cuppent  Accounts  openedi 
Coupona  purchased. 

1    ALL    KINDS   OF    BANKING    BUSINESS   TRANSACTED, 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 


Head  Office^rr,  Old  Broad  Street,  E.C. 


Stibseribed  Capital         ..        ..        .. 

"ftM  up  Capital 

Reserve  Fund  and  Undivided  Profits 
Reserve  Liability  of  Proprietors 


«1, 276. 747 
669.686 
375,680 
606,962 


10 

0 

1  1 

10 


REHITTANCES  made  bv  CABLE. 

DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 

'    -  Branches  and  Agents. 

BILLS  on  Australasia  NEGOTIATED  or  sent  for  coUecfion, 

DSrOSITS  RECEIVED  ior  periods  and  at  rates  which  may  be  ascertained 

on  application,  and   Banking    Business   of    everv  descrtptioo    conduoted 

vntb  A  ustiBlia. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  x88o. 

Authorised  and  Issued  Capital,  £6,000,000. 
Paid-up  Capital,  £2,000,000;  Reserve  Fund,  £2,000,000 ;  togethei    £4.ooi:),ooo 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OFFICE    -        -        -        71 ,  CORNHILL,  LONDON.    E.G.  3. 
DRAFTS  are  granted  on  tLe  Bank's  Branches  throughout  the  Austraiia&i 
States  and  Domini'^n  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made. 
BILLS  are  purchased  or  sent  for  Collection 

DKPOSrrS  ar«  receivtd  for  fixed  periods  on  terms  which  may  be  ascertained 
oa-appHoatioa. 


UNION     BANK     OF     CANADA. 

IncORPORATED  J865.  HEAD  OmcE :  WINNIPEG. 

PAID-UP  CAPITAL ts,ooo,ooo 

RE*T    AND    UrsDIVIDBD    PROFITS  ..        tiboo  ooo 

TOTAL   ASSETS    EXCEKD         $143,000,000 

The  Bank  has  over  300  Branches  in  Canada,  and  Agents  In  the  principal 
cities  in  Amaploa.       General  Bankino  Business  Cokductbd. 

Oapoalts  Reoelvad  for  &ied  periods  at  favourable  catH,  whieh  may  b< 

ascertained  on  appllcatioc  to 

London  Offleas  :  I,  PRINCES  STREET.  E.C  1  aad  IS,  IMVM«MiT,  S.W. 
N««i  York  Atenojr :  4S,  Wall  Street 


INSURANCE. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 

£9,700,000 
or  over  £31.000  for  each  Working  Day. 

ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head  Office:  BARTHOLOMEW  LANE,  LONDON.  E.C.  2. 


ASSETS    EXCEED    £24,000,000. 


Chairman  i 
The    Hon.    N.    CHARLES    ROTHSCHILD. 


The  operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  information  respecting 

ESTATE    DUTY   »ho 

CHILDREN'S  EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  appiicat'on 
to  the  Head  Office  as  above, 
OP  to  any  of  the  Offices  op 
Agencies    of    the    Company. 

O,  MORGAN  OWEN.  General  Manager. 


THE  PROVIDENT  ASSOCIATION  OF  LONDON 

LIMITED. 

Provident  House,  Bishopsgate,  London,  E.C.  2. 

Founded  1877. 

Authorised  bv   .\ct  or  Parliament,  Intituled 

Provident   Association    of    London    Act,   lyio. 


Invested  Funds 


£6,822,535. 


Total  .\dvances  upon  House  Property  to  Policy-holders  and 
Certifica  e-holders  exceed 

W.  W.  BENHAM,)      Joint 
J.  J.  GREEN,  \Managers. 

Provident  House,  Bishopsgate,  London,  E.C  2. 


^be  Snveatore^  IRcview. 

SCALE  OF  CHARGES  FOR  ADVERTISEMENTS. 


PROSPECTUSES. 

Full  Page *25     O 

Under  one  page,  at  per  inch,  1      5 

single  column 
Special  positions  by  arrangement. 
REPORTS    OF    COMPANY    MEETINGS. 
Minimum     ...  •••  •••        S*      O 

Per  Column...  ...  ...  6    11 

COMPANIES'    BALANCE-SHEETS. 
Whole  Page  ...  •  ■    fi15    IS 

Half  Page 8      2 

Quarter  Page  ...  ••■  *       2 

DIVIDEND    NOTICES,    &C. 
Per  Inch «0   1 2 


BANKS    AND    INSURANCE    COMPANIES. 
Special  position  ...  ...  O  18    9 

Front    I'age    (cover)   or  facing 

Money  Article,  per  inch      ...        fiO  ISO 
Ordinary  position,  per  inch      ...  O  12    8 

Discount  for  Series.— i%  for  Thirteen.  10%  for  Twenty-six, 
15%  for  Thirty-nine,  and  20%  for  Fifty-two. 


'INVESTORS'  REVIKW,' 


NonFOLK  HousB,  NoRroLK  Strut,  Stramd 
London,  W.C.    ' 


^be  5nveetore*  IReview* 


Vol.  XLI. 

New  Series. 


No.  1,056.  SATURDAY,  MARCH  30    1918.         Ct^ll"'')  Pf-ice  6d. 


PUBLISHER'S    NOTICES. 

UbC  investors'  IReVieW  is  a  subscription  Joumal.  and  will 
be  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning 
on  the  following  terms ; — 

One  Year,  £1  5s.  Od,    Six  Months,  12s.  M.    Three  Months,  6s.  6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year  £1  8s.  Od.    Six  Months,  Us.  Od.    Three  Months,  78.  Od 

Short  of  Three  months  the  Price  is  ejd.  per  Copy  Inland,  and 

7d.  Abroad.  Post  Free. 

Cloth  cases  for  binding  the  half  Yearly  Volumes  price  2s.  6d., 

postage  6d.  extra.     BoundVolumes  17«.  6d.,  or  ISs.  6d.  post  free. 

Cheques  and  P.O.  Drafts  should  be  made  payable  to 

"Investors'  Review," 

Norfolk  House,  Norfolk  Street, 
London,  W.C. 


Telephone  No. : 
Gerrard  9132. 


Telegraphic    Address: 
"  Unveiling,  London." 


The  Editor  cannot  undertake  to  return  rejected  cow- 
jnunications. 

Letters  from  correspondents  musf,  in  every  case  be 
autlienticaled  by  tfie  name  and  address  of  the  writer. 

The  Editor  desires  It  to  be  understood  that  a  charge  is 
made  for  the  insertion  of  reports  under  the  heading  of 
Company  Meetings,  and  be  cannot  accept  responsibility 
for  statements  made  therein. 


ANSWERS  TO  QUERIES. 

One    Reply    to    One    Question  — One    Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  kept,  as  securities  cannot  be  named  with  comments  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issus 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  in  advance,  a 
Key  to  the  previous  week's  replies  will  be  sent  early  in  the 
following  week. 

Deposits  of  "Query  Money  "  may  be  made  in  advance,  and  will 
be  acknowledged  in  the  "Answers"  column.  Notice  of 
exhaustion  will  also  be  given  there. 

Telegrams  advising  about  new  securities  cost  Half-a> 
Crown  each,  plus  cost  of  the  telegram. 

Private  letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
Shillings,  but  for  this  three  questions  will  be  answered  if 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Half-a-Crown  per  question. 

Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  on  terms  varying  according  to  the  time 
taken. 

Groups  o'  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


Passing    Events. 

From  one  point  of  view  we  must  not  be  too  disap- 
pointed at  the  falling  off  in  National  War  Bond  sales 
shown  in  the  Exchequer  return  for  the  past  week. 
The  "  Business  Men's  Week  "  and  other  special  rouse- 
ups  were  bound  to  produce  just  such  a  result,  and  only 
^i7>454>ooo  of  the  Bank  of  England  issue  was  sold 
last  week,  bringing  up  the  total  realised  since  the  be- 
ginning of  January  by  these  sales  to  /;'4io, 218,000, 
and  the  aggregate  since  the  issue  began  to 
j£^594>877.ooo.  This,  although  not  nearly  enough, 
would  have  been  most  cheering  if  all  new  cash.  How 
much  is  that  we  do  not  know.  The  Post  Office  Bonds 
also  produced  less  at  ^"i, 638,000  for  the  week  ended 
March  16,  raising  the  entire  amount  contributed  from 
that  tap  to  ;^23,273,ooo.  And  there  was  an  excel- 
lent sale  of  War  Savings  Certificates,  one  of 
the  best  yet  recorded,  4,061,255  having  been 
tlisposed  of,  furnishing  ;£:3, 147,471.  All  these 
rivulets,  however,  do  not  make  a  stream  of 
volume  sufficient  to  keep  the  Treasury  reservoir  full, 
and  nothing  is  more  urgent  at  the  present  time  than 
that  the  nation  should  be  roused  to  emulation  in  sacri- 
fice, in  order  to  back  up  its  heroic  troops.  Instead  of 
selling  4,000,000  War  Savings  Certificates  in  a  week, 
the  public  ought  to  buy,  and  easily  could  buy,  at  least 
as  many  per  diem.  And,  as  we  long  ago  insisted,  the 
wealthy  of  all  ranks  will  have  to  divest  th€m.selves  of 
no  small  part  of  their  surplus  wealth  if  the  nation  and 
Empire  are  to  be  saved  from  a  withering  financial 
catastrophe  after  the  war.  Let  them  try  to  realise 
what  their  wealth  would  be  worth  to  them  should  they, 
by  their  selfish  indifference,  allow  the  Prussian  beast  to 
win. 


Bonds.  Accordingly,  /"51, 770, 000  of  supply  Treasury 
bills  were  repaid  and  /."^o, 000, 000  of  temporary  ad- 
vances, a  most  welcome  reduction  in  this  last  em- 
barrassing item.  Against  these  large  repayments, 
however,  ;^32,253,ooo  of  fresh  Treasury  bills  had  to  be 
issued,  and  ;^3,4i4,ooo  of  temporary  advances  were 
obtained.  "  Other  war  debt  "  to  the  extent  of 
;^"8, 218,000  was  redeemed,  but  ;^ii, 799,000  of  fresh 
obligations  under  this  category  were  contracted.  A 
solid  ;^3, 200,000  was,  however,  obtained  from  the  sale 
of  War  Savings  Certificates,  and  altogether  the  gross 
income  of  ;^i69, 129,000  was  ;^3,772,ooo  in  excess  of 
the  gross  expenditure.  Exchequer  balances  accord- 
ingly swelled  out  to  ;^i8,438,ooo,  and  a  year  ago  they 
were  onh'  ;£'22,345,ooo.  The  figures  bring  us  now  to 
within  one  week  of  the  end  of  the  fiscal  year,  and  it  is 
interesting  to  note  the  fact  that  up  to  Saturday  last 
;^68i, 340,000  had  been  paid  over  to  the  Exchequer, 
the  product  of  ordinary  taxation  and  State  monopolies. 
Property  and  income-tax  has  produced  ;^229,76o,ooo, 
and  excess  profits  duty  and  munitions  levy 
;^209,8i5,ooo,  and  most  other  sources  of  revenue  have 
shown  equal  or  at  worst  hopeful  fertility.  The  total 
revenue  up  to  last  .Saturday  was  ;^42,740,ooo  in  excess 
of  the  Budget  estimate. 


Last  week's  income  from  taxation  and  State  mono- 
polies was  ;^27,98o,ooo,  and  the  expenditure  on  cur- 
rent .services  was  ;^62,502,ooo,  of  which  i:55,837,ooo, 
O""  A7. 977.000  per  diem,  was  on  supply.  In' addition, 
;^5, 214,000  was  absorbed  by  interest  on  war  debt,  and 
miscellaneous  demands  took  ^1,452,000.  Thus  the 
aggregate  of  the  week's  expenditure  of  ^^62, 502,000 
equalled  ;^8,929,ooo  per  diem.  To  this  has  to  be 
added  credit  expenditure,  which  brought  up  the  over- 
turn of  the  week  to  ;^i 65,357,000.  Happily  .some  por- 
tion of  this  was  reduction  in  the  floating  debt,  thanks 
■to  ;^90, 483.000  received  from  the  recent  sales  of  War 


A  Note  has  been  sent  by  the  Helgian  Government  to  Mr. 
Nelidoff,  the  Russian  Mini.ster  accredited  to  it  by  the  la.^t  recog- 
nised Russian  Government,  in  which  the  Belgians  request 
Russia  not  to  forsake  her  ally  or  forget  the  pact.  "Russia," 
the  Note  says,  "  gu.iranteed  the  independence  and  neutrality  of 
Belgium  by  the  treaty  of  April  19,  1839.  On  August  4,  1914, 
this  neutrality  having  been  violated  by  the  Germany  which 
had  also  guaranteed  it— that  is  Prussia  had— Belgium  called 
Russia  to  her  assistance.  To  that  appeal  Russia  gave  a  favour- 
able answer.  On  February  16,  1916,  she  renewed  her  engage- 
ments to  Belgium,  "  heroically  faithful  to  her  international 
obligations,"  declaring  that  she  would  not  put  an  end  to  the 
hostilities  until  Belgium  was  re-established  in  her  independence 
and  largely  compensated  for  the  injuries  she  had  suSered. 
Russia  also  promised  Belgium  her  assistance  in  assuring  the 
commercial  and  financial  reinstatement  of  the  country,  and  now 
those  anarchists  whom  the  Russian  Revolution  has  allowed  to 
seize  power,  have  just  signed  treaties  dated  February  9  and 
March  3  of  the  current  year,  by  which  they  lay  down  their 
arms  before  the  German  and  Austro-Hungarian  Empiret. 
"  Meanwhile,  Belgium  is  still  the  prey  of  the  Imperial  German 
Armies  who  oppress  her,  decimate  her  population  with  pitiless 


3«6 


XTbe  Jnvestors'  TReview. 


March  30,  191 8. 


privations  and  repressions,  and  overwhelm  her  with  the  worst 
moral  sufferings.  The  Belgian  nation  continues  to  oppose  these 
violences  with  the  force  of  resistance  that  she  gathers  in  the 
consciousness  of  her  right,  in  the  beauty  of  her  cause,  in  her 
att.ichment  to  liberty."  And  she  considers  that  Russia  is  still 
in  honour  bound  to  stand  by  her  and  to  come  to  her  assistance. 
"  Belgium,"  the  memorandum  winds  up,  "drawn  into  the  war 
by  her  will  to  respect  an  agreement  guaranteed  by  Russia,  con- 
tinues the  struggle  without  flinching  and  at  the  price  of  the 
most  painful  sacrifices.  She  refuses  to  believe  that  the  Russian 
people,  m.ister  of  its  destinies,  will  irrevocably  persist  in  deny- 
ing the  solemn  promises  made  in  the  name  of  Russia." 

Uelgium  does  well  to  publish  this  reminder  and  appeal  at  the 
present  time.  It  will  help  Russian  patriots  by  shaming  some  of 
their  opponents,  and  it  .should  check  many  amongst  us  here 
who  are  showing  a  tendency  to  malign  Russia. 

We  appealed  last  week  for  help  to  enable  the  Ru.ssian  people 
to  resist  the  Germans  and  overcome  the  anarchy  of  Bolshevism, 
and  some  have  asked  :  "What  could  we  do  to  help  the  Russians? 
We  cannot  send  troops  to  Russia ;  it  would  be  use'ess,  per- 
haps dangerous,  to  waste  further  military  supplies  by  sendiny 
them  there;  what  can  we  do?  "  We  can  encourage  the  Russians 
to  self-respect  by  refusing  to  regard  them  as  defaulters,  dere- 
licts from  civilisation,  or  otherwise  showing  our  displeasure. 
In  the  matter  of  the  Russian  debt  interest,  for  example,  it  is 
surely  both  ungenerous  and  indiscreet  to  blame  the  whole  Rus- 
sian nation  for  the  Bolshevist  default.  We  know  that  Russia 
is  not  guilty,  that  the  Russian  people  are  as  much  the  victims 
of  this  stroke  of  anarchy  as  the  foreign  creditor,  and  that  the 
source  of  the  present  humiliation  is  not  the  disposition  of 
Russia  as  a  whole,  but  a  product  of  the  misrule  and  corruption 
which  preceded  the  fall  of  the  empire.  Probably  Russia  is 
beginning  to  recover  her  moral  balance  even  now,  and  as  the 
great  conflict  in  the  West  draws  on  towards  its  inevitable  end, 
Russian  courage,  Russian  love  of  and  sympathy  with  his  fellow- 
man,  all  the  nobler  impulses  of  the  Slav,  will  find  courage  and 
strength  to  manifest  themselves,  and  the  end  of  the  brief  German 
triumph  in  the  East  will  be  an  overwhelming  confusion. 


Japan,  it  is  said,  has  declined  to  intervene  in  Manchuria. 
We  cannot  regret  that  decision.  Intervention  was  not  the 
simple  affair  our  scared  ones  chose  to  regard  it,  and  had  it 
been  undertaken  might  have  led  to  many  complications.  For 
one  thing,  it  might  have  humiliated  Russia,  the  real  Russia, 
and  we  must  above  everything  avoid  that.  Russia  is  still 
capable  of  delivering  herself,  and  will  do  so  given  time.  To 
imagine  that  a  country  larger  and  of  greater  population  than 
the  United  States  can  be  managed  and  held  in  slavery  by  a 
horde  of  Prussian  thieves  and  landgrabbers  is  surely  to  proclaiui 
our  own  lack  of  manliness. 


Particulars  have  now  come  to  hand  through  the  Auslralasiau 
Insurance  and  Banking  Record  relating  to  the  public  finances 
of  the  six  States  of  Australia  for  their  past  fiscal  year,  and  some 
of  these  must  be  given  here.  Actually  the  taxation  of  the 
various  States,  plus  the  Commonwealth,  produced  in  the  year 
ended  June  30  last  .j£^33)5o7,483,  of  which  ;^24, 523,01 3  was 
collected  by  the  Commonwealth,  the  States  individually  gather- 
ing in  ;{^'8, 984,470  additional.  Of  the  Commonwealth's  share, 
however,  about  ^6,250,000  was  allocated  to  the  several  States, 
the  per  head  average  oj  taxation  for  the  whole  country  having 
been  £i>  163.  lod.  In  1913-14  it  was  £i^  14s.  This  latest  average 
is  calculated  on  the  population  actually  within  Australia,  ex- 
clusive of  those  absent  on  active  service.  If  the  absent  ones 
were  included,  the  taxation  would  amount  to  £.(>  9s.  per  head, 
fi  sufficiently  heavy  load. 

The  subjoined  duplicate  tables  give  the  gross  and  nelt  re- 
venue and  expenditure  of  *the  whole  country  for  the  past  year. 
In  the  first  table  the  gross  earnings  of  the  railways  are  in- 
cluded, and  also  their  expenses,  whereas  in  the  second  gross 
revenue  and  expenses  are  excluded,  and  we  only  get  the  nett 
on  both  sides  of  the  account.  We  give  the  two  sets  of  figures 
mainly  for  the  purpose  of  showing  the  great  place  which  the 
railways  hold  in  the  public  accounts,  and  it  is  significant  that 
they  should  make  so  large  a  difference  in  the  totals.  The  work- 
ing expenses  of  the  railways  were  actually  ;^i8,8i7,658,  which, 
deducted  from  their  gross  earnings  of  ;f24, 746,695,  give 
;f7,Q29,oio  as  the  nett  income  before  charging  interest,  interest 
lUone  took  ;^6, 245,000,  and  the  nett  income  was  nearly  ^578,000 
less  than  that  of  the  previous  year,  but  still  the  railways  would 
seem  to  continue  to  pay  their  way,  and  they  are  undoubtedly  a 
valuable  asset.  We  hop*  they  will  continue  to  be  that  after  the 
war  has  ended. 


The  other  sources  of  income  possessed  by  the  Australian  States 
and  Commonwealth  do  not  indicate  elasticity  such  as  we  should 
expect  in  a  progressive  country.  This  is  hardly  the  time  to 
discu.'is  the  question  of  staying  power  with  a  view  to  obtaining 
a  satisfactory  answer,  but  it  is  at  least  hopeful  to  find  direct 
taxation  capable  still  nf  yielding  increased  amounts  to  the 
Treasury.  The  yield  from  taxation  was  almost  ;f  10,000,000 
larger  in  production  last  year  than  in  1914-15.  In  the  indi- 
vidual States  alone  it  rose  ;£840,ooo,  of  which  /\^i2,noo  was 
contributed  by  New  South  Wales  and  ^146,000  by  Victoria. 
Last  year  the  expenditure  exceeded  the  income  by  ;f2,4g5,<joo, 
and  the  public  debts  of  the  whole  of  Australia,  including  the 
nett  debt  of  the  Commonwealth,  was  ;f523,4o6,ooo.  Of  this 
total  New  South  Wales  owed  ^^136, 138,000,  Victoria 
^^78, 125,000,  Queensland  ;^6i, 303,000,  South  Australia 
;^39, 364,000,  Western  Australia  ;f 40,91 5,000  and  Tasmania 
£1^ -lb-]  2, 000.  The  gross  debt  of  the  Commonwealth  was 
;;^ 1 69,178,000,  but  from  that  has  to  be  deducted  ^7, 500,000  lent 
by  it  to  the  various  States  and  ;^io, 790,000,  the  value  of  pro 
perties  transferred  from  the  States  to  the  Commonwealth,  thus 
bringing  down  the  nett  debt  to  ;^ 1 50,888,000. 

The  total  expenditure  of  the  Commonwealth  and  States  to- 
gether was  last  year  /.'8o,9 19,000,  and  the  expenditure  chafged 
to  loans  ;^68, 158,000,  or,  together,  ^^149,077,000.  This  include.^ 
public  works  outlays  by  the  Commonwealth  charged  to  revenue, 
but  the  States  charged  ^15,058,000  of  public  works  expenditure 
to  capital.  It  is  included  in  the  above  total,  and  was  about 
;^'5,ooo,ooo  less  than  that  of  the  previous  year. 


For  the  current  year  ending  June  30  next  the  gross  expenditure 
is  put  at  nearly  ^185,000,000,  more  or  less,  according  as  outlay 
on  public  works  goes  up  or  down,  and  of  the  total  the  Common- 
wealth is  to  provide  ;r86,794,ooo  from  loans,  including 
;f2, 743,000  for  public  works.  Its  income  is  put  at  ;f3o,r68,ooo. 
which  includes  ;{^i3, 109,000  of  the  war  co-sts,  and  the  revenue 
clear  is  set  down  at  ^^28,040,000.  For  the  six  States  the  income 
is  estimated  at  ^54,697 ,000,  and  the  expenditure  at  ^^ 54,923,000. 

A  word  may  be  added  about  wheat,  in  which  we  have  a  pro- 
prietary interest.  There  is  still  about  133,000,000  bushels  of 
the  last  two  crops  on  hand.  Total  cost  was  ;f36, 394,000  in 
i()i5-i6  and  ^'23, 210,000  in  1916-17,  of  which  ^iv.tfx^.oori  were 
advances  in  the  former  and  /19, 805,000  last  year.  The  current 
year's  crop  is  estimated  at  no  to  120  inillion  bushels,  compared 
with  150,652,000  bushels  last  year  and  179,066,000  bu.shels  for 
1915-16^     But  the  1914-15  crop  was  only  24,892,000  bushels. 


AUSTRALIAN  STATE  PUBLIC  FINANCE,  1916-17- 
Rbvenub. 


From  Com. 
inon  wealth 

Railways.* 

All  Other.! 

Toul. 

2,286,913 
1,722,409 
820,604 
531.340 
569,981 
336,004+ 

10.390,6  2 
5,881,968 
3.834,436 
1,194  368 
2,004,148 
340,173 

7,818,481 
3.855.''53 
3.M5.853 
1,048,895 
1,001,877 
693,191 

io,40S,99i 

II,4£l,0]0 

7,880,893 

4,874,603 

4.577.007 
1.369.36* 

Tasmania 

Total 

6,167,152      24,746.695 

19,644.9'iO 

50,658.897 

Expenditure. 


Interest, 
&c. 

Railways. 

AH 
Other. 

Total. 

New  South  Wales  

t 
S.119,111 
3,063,998 
1,178,831 
1,474,175 
1.765.839 
608,779 

7,605,046 
4,308.990 
3.003,743 
1,736,413 
1,554,704 
293.018 

8,017.369 
4.127.357 
1,851,811 
1.979.755 
1,956  221 
511,096 

11.500.345 
8,134  387 

5,276,764 
1,412.803 

Tasmania 

Total     

14,310.934 

18.501,921 

19.443,610 

52,256,468 

*  Including  tramway  revenue  :  New  South  Wales,  £2.020,377  ;  and  Western 
Australia,  £125,714.  The  New  South  Wales  tramway  expenditure  was 
/i,687,884.  Httcluding  special  grant,  £90,000.  t  Including  direct  taxation  by 
States. 

STATE  REVENUE  AND  EXPENDITURE  (ORDINARY). 
Revenue. 
(Inclusive  of  Net  Raitwav  Barnines.) 


_ 

■9M-15. 

1915-16. 

igift-i?. 

New  South  Wales    

L 
11,000,171 
5,980,631 
4.791.193 
1,533.118 
3.35r,l»i 
1.018,149 

I 
12,714.911 
7,020,388 
4.956,145 
2,798,228 
3,760.110 
1,111,503 

11,890,950 

7,151,040 

Soutli  Au^^tralia  

3,138,1^0 

Western  Australia  

3  01?, 30^* 

Tasmania 

1,076,150 

Total 

19,881,444 

31,381,197 

3'.'56,973 

ExPRNDITt'RE. 


New  South  Wales    

11,506,777 
7,176,101 

4788,934 
3,«2i>3 
4,111,988 
1,158.105 

I 
12,617,101 
7.253.M3 
492I.3S3 
3182,637 
4  108,5«3 
1.086.723 

13.136.580 

Victoria    

7.'9'.3^5 

Queensland ....  \ • 

5,130,644 

Western  Australia 

3,71l,oCo* 

Tasmania 

1.119.875 

Total 

31,975,218 

33,169,161 

33.754.544 

*  Under  revised  system  the  correspondini;  figures  (adjusted  to  include  certain 
Government  trading  concerns  for  1915-16)  were :— Revenue  £3,155,040 ;  expendi- 
uie,  if3,490,3i4. 


March  30,  1918. 


XTbe  Jnvestots'  TReview. 


317 


I 
I 


Great  prosperity  is  revealed  by  the  Egyptian  liudget  for  the 
year  ended  March  31  next.  It  shows  a  revenue  of  ^^E. 22, 900,000 
and  an  expenditure  of  ;^E. 23, 250,000.  This  gives  a  deficit  of 
;ifE. 350,000,  which  will  be  debited  to  the  reserve  fund.  It  is 
not  a  matter  of  much  consequence  because  the  ;^E.5oo,ooo  re- 
cently voted  by  the  Council  of  Ministers  towards  the  British 
war  expenditure  is  included  in  the  total.  Then,  again,  the  cost 
of  the  rise  in  prices  has  caused  an  increase  in  the  expenses  in 
all  departments,  notably  one  of  ^E. 950, 000  in  the  cost  of  fuel 
for  the  railways.  The  satisfactory  point  to  emphasise  is  that 
Egypt  should  have  a  revenue  which  enables  her  to  meet  these 
temporarily  heightened  charges.  The  Budget  for  the  year  now 
<losing  was  ;fE. 3,375,000  larger  than  that  of  the  year  before, 
and  in  the  estimates  for  the  new  year  Customs  are  expected 
to  show  an  improvement  of  ;fE.  1,060,000,  of  which  ;^e. 634,000 
is  to  come  from  the  new  sugar  Excise.  An  increase  of 
;fE. 2, 156,000  is  also  expected  from  the  railway,  telegraph  and 
telephone  services,  and  increases  are  also  looked  for  as  result 
of  higher  passenger  fares  and  goods  rates  on  the  railways. 
Generally  speaking,  the  increase  in  the  revenue  is  product  of 
the  high  cotton  and  cereal  prices  and  of  the  prosperity  induced 
by  the  presence  of  the  British  forces.  We  must  not,  therefore, 
expect  this  prosperity  to  continue  without  a  dip  when  the  war 
is  over,  but  it  is  well  fliat  it  should  prevail  now  in  the  )-ears 
of  crisis.  When  it  goes  down  by  and  by  expenses  will  likewise 
diminish. 

Probably  the  Dutch  Government  was  really  thankful  when 
the  United  States  led  the  way  in  forcibly  taking  possession  of 
the  Dutch  merchant  vessels  interned  in  her  ports.  President 
Wilson  has  conducted  that  delicate  affair  with  great  skill. 
Holland  dare  not  accede  to  the  American  demand  and  ours  to 
hand  over  her  interned  ships  for  use  by  us  in  our  emergency 
without  bringing  down  upon  her  the  brutal  wrath  of  the 
Prussians.  At  the  same  time,  there  was  no  valid  excuse  for 
her  refusal  either  in  international  law  or  usage.  The  Govern- 
ment was,  therefore,  in  a  most  delicate  position,  and  that  must 
be  recognised  if  we  are  to  do  the  Dutch  people  justice.  Those 
who  abuse  them  here  have  never  betrayed  the  slightest  under- 
standing of  the  position.  Surely  with  the  fate  of  Belgium 
before  them  we  ought  at  least  to  make  allowances  for  Holland. 
Why  should  she  bring  down  upon  herself  the  wrath  of  this 
Prussian  barbarian  gone  in.'-.ane?  Had  Holland  and  Denmark 
thrown  in  their  lot  with  the  Alfies  of  the  Entente,  could  they 
have  .helped  us  much  in  tlie  earlier  phases  of  the  world  war  ? 
They  would  have  been  overrun  and  stripped  of  everything  the 
aggressors  could  have  laid  hands  on  before  we  could  have 
prevented  it ;  and  had  the  Germans  been  victorious  in  the  end, 
their  whole  territories  would  have  been  annexed  and  their 
nationalities  obliterated.  Surely  the  Dutch  were  justified  in 
doing  their  utmost  to  avert  the  danger  of  such  a  catastrophe, 
and  in  view  of  that  danger  their  management  of  relations  with 
the  belligerents  on  both  sides  has  often  been  most  prudent  and 
skilful.  And  the  Dutch  will  lose  nothing  in  the  end  by  sub- 
mitting to  jorce  majeure  in  the  matter  of  their  seized  merchant 
ships,  for  this  additional  tonnage  of  between  600,000  and  700,000 
tons  will  make  it  possible  for  us  to  spare  for  thein  some  of  the 
food  coming  to  us,  and  fjull  compensation  will  be  given  them 
for  the  use  of  their  vessels  or  for  any  damage  done. 

The  Swiss  Bank  Corporatmn  seems  to  have  done  a  very  profit- 
able business  last  year,  its  nett  profit  of  ^339, 123  being  ;^24,ooo 
larger  than  that  of  1916.  This  nett  profit  includes  ;,^i5,i88 
brought  forward,  but  is  arrived  at  after  transferring  ;£8,ooo  to 
the  pension  fund  and  making  various  other  depreciation  allow- 
ances, reserves,  and  adjustments.  Of  this  profit  the  directors 
and  managers  get  ^40,492,  or  ^3,000  more  than  a  year  ago,  and 
from  the  balance  a  dividend  of  8  per  cent.,  the  same  as  in  pre- 
vious year,  is  paid,  leaving  £^(^,2^1,  or  ^21,000  more,  to  be 
carried  forward.  The  balance-sheet  is  increased  by  ^^7,470,000 
to  ;^34.379'25o.  and  the  source  of  this  increase  is  mainly  current 
account  balances,  which  are  up  /6, 427, 000  to  ;£23, 568,000. 
There  is  also  an  increase  of  ^f  140,000  in  fixed  deposits,  bringing 
them  up  to  ^4, 110,170.  Amongst  the  assets,  cash,  &c.,  is 
^90,000  larger  at  /i, 637 ,894,  and  banks  and  bankers  owe  the 
corporation  ^f  1,500,000  more  at  ^4, 587,363.  There  is  also  an 
increase  of  ^1,830,000  in  bills  receivable,  raising  that  item  to 
;^8,945,349,  and  current  account  advances  are  ^3,009,000  higher 
at  ;fi5'835,S75.  The  only  change  amongst  the  securities  held 
is  an  increase  of  ^340,000  in  the  Government,  Railway  and 
other  securities  owned,  which  stand  now  at  ^1,395,204.  Gross 
receipts,  it  may  be  added,  are  ^^44,000  up,  but  ;if28,ooo  of  that 
increase  was  absorbed  in  general  expenses  and  taxes,  and  a 
;f  14,000  increase  was  also  shown   in   the  various  depreciations 


and  assignments  to  reserves  mentioned  above,  which  altogether 
aggregate  ;^47,ooo.  On  the  other  hand,  ^^22,000  less  at  .1^8,259 
had  to  be  set  aside  for  bad  and  doubtful  debts.  During  the  year 
the  Banqu€  de  Nyon,  with  its  agencies  at  Merges  and  Vallorbe, 
were  taken  over,  and  this  will  increase  the  _corDoration's  in- 
fluence in  the  wine  and  watchmaking  districts  of  Switzerland. 
The  only  public  issues  in  which  the  corporation  was  interested 
last  year  were  the  6th  and  7th  Mobilisation  4^  per  cent.  Loans 
of  the  Swiss  Confederation. 

Surely  the  directors  of  the  Maypole  Dairy  Co.,  Ltd.— Sir  W. 
George  Watson,  Bart.,  C.  H.  Watson,  J.  A.  Watson, 
A.  E.  Watson,  P.  O.  Watson,  and  others— must  be  peculiar 
people.  They  are  always  whining,  although  for  last  year  they 
get  a  dividend  of  225  per  cent.— apart  from  a  fat  bonus  by  the 
issue  of  new  shares  at  par— and  for  the  past  eight  years  the 
distribution  on  the  deferred  has  averaged  145  per  cent.  What 
that  represents  on  the  original  capital  they  put  into  the  busi- 
ness is  not  worth  calculating,  but  most  people  would  be  in- 
clined to  think  that  the  remuneration  has  been  more  than 
ample.  A  year  ago  they  only  felt  justified  in  paying  an 
interim  dividend  of  25  per  cent.,  "owing  to  the  necessity  of 
carrying  increased  stocks  of  raw  materials,  and  the  uncertainty 
of  the  sugar  position."  And  this  time,  after  declaring  the 
dividend  of  225  per  cent.,  and  providing  the  bonus  already 
alluded  to,  they  wail  that  "  future  prospects  are  very  discour- 
aging, owing  to  the  transfer  of  Maypole  margarine  supplies 
and  retail  trade  in  so  many  towns  to  the  sugar  retailers,  and 
the  directors  fear  that  this  will  seriously  injure  the  valuable 
goodwill  of  the  company's  retail  trade."  In  order  to  make 
provision  for  this  horrible  contingency,  they  place  ^10,000  to 
reserve  out  of  a  nett  profit  of  nearly  three-quarters  of  a  million  ! 
It  is  true  the  total  reserve  is  ^670,000,  but  the  great  bulk  of 
this  has  been  derived  from  premiums  on  previous  share  issues, 
and  it  may  be  useful  to  point  out  that  goodwill  stands  at 
^423,000,  while  the  market  valuation  of  the  share  capital  is 
about  ;^7,ooo,ooo.  We  are  all  in  favour  of  directors  taking  a 
reasonably  cautious  view  of  the  outlook,  but  their  actions  ought 
to  be  consistent  with  it,  and  these  hardly  seem  to  square  in  this 
case.  Possibly,  however,  the  desperate  timidity  which  pre- 
vented the  payment  of  a  final  dividend  a  year  ago  may  not 
have  been  altogether  unconnected  with  the  dangerous  policy 
of  issuing  shares  at  par  when  the  market  price  was  anything 
between  10  and  15  times  the  nominal  value.  At  any  rate,  the 
past  year  was  a  most  prosperous  one,  and  it  is  stated  that  the 
total  overturn  of  the  company  and  its  allied  factories  exceeded 
22  millions.  Nett  profits,  after  providing  for  excess  duty,  and 
writing  off  ;^25o,ooo  for  special  depreciation,  amounted  to 
^747,250,  an  increase  of  ;^285,ooo,  and  ^'240,000  more  at 
;f334,ooo  was  brought  in,  but  with  the  payment  of  the  final 
dividend  of  is.  2d.  on  the  deferred  shares  the  carry  forward  will 
be  reduced  to  ^^12,520.  Perhaps  it  is  not  surprising  in  the  cir- 
cumstances that  the  market  values  the  shares  at  a  price  which 
gives  a  yield  of  25  per  cent.  Changes  in  the  balance-sheet  are 
considerable.  The  issue  of  1,850,000  deferred  shares  at  par 
yielded  ;^i84,ooo,  but  creditors  haye  increased  nearly  i-^  mil- 
lions to  ;^i,696,ooo.  On  the  other  hand,  cash  has  risen  £i'jo,ooo 
to  ;^358,ooo,  and  there  are  Treasury  bills  and  National  War 
Bonds  of  ^^996,000,  while  loans  to  subsidiary  companies  are 
^380,000  higher  at  ;f  1,220,000,  but  stocks  are  ;i;^i3o,ooo  down 
at  ;^3i6,6oo.  With  the  special  depreciation  of  ;^25o,ooo  written 
off  branch  shops,  plant,  fixtures,  leases,  and  trading  invest- 
ments are  reduced  to  ^^494,000,  and  goodwill,  &c.,  remains  at 
^^423,000.  The  position  looks  comfortable  enough  to  relieve  the 
shareholders  of  any  undue  anxiety  about  the  immediate  future ; 
but  war  conditions  will  not  continue  for  ever. 


In  the  report  of  the  Lion  Brewery  Co.,  Ltd.,  for  the  past 
year  it  is  stated  that  the  business  has  been  carried  on  under 
great  difficulties  owing  to  restrictioBs  of  output  and  reduced 
hours  of  trading.  It  has  also  been  carried  on  at  great  profit, 
the  trading  re.suhs  shov/ing  an  improvement  of  ^'69,000  at 
^269, 300,  while  the  nett  profit  is  ;f2i,ooo  up  at  £73,yoo.  After 
placing  /ii,ioo  to  reserve  (raising  it  to  /7o,ooo),  and  writing 
;^i,ooo  off  goodwill,  both  new  items,  the  dividend  on  the  ordi. 
nary  shares  is  raised  from  8  per  cent,  to  10  per  cent.,  of  which 
3  per  cent,  was  paid  as  interim  and  the  balance  forward  is  in- 
creased by  ;f9,6oo  to  ;^i8,65o,  subject  to  excess  duty.  During 
the  year  the  consents  of  practically  all  the  company's  lessors  and 
creditors  were  obtained  to  the  cancellation  of  the  uncalled 
capital,  and  this  has  since  been  sanctioned  by  the  courts.  As 
an  indication  of  the  increasing  prosperity  of  the  company  it  may 
be  mentioned  that  in  November  last  an  offer  was  made  to  the 


3'8 


Zbc  Jnvestors'  IRevievv. 


March  30,  1918. 


4  per  cent,  debenture-holders  to  exchange  a  portion  of  thdr 
stock  for  80  per  cent,  of  5  per  cent.  War  Loan  stfxk,  and  in 
response  to  this  invitation  the  company  v.as  able  to  purchase 
.^117,000  of  debenture  stwk. 


Departmental  Confusion,  Muddle,  and 
Delays. 

Now  that  Parliament  has  risen  for  a  short  holiday,  there 
may  he  room  in  the  newspapers  for  the  ventilation  of  business 
grievances  and  for  illustrations  of  the  consequences  of  govern- 
ment by  bureaucracy.  Amongst  these  latter,  the  most  dan- 
gerous at  the  moment  is  the  shipbuilding  delay.  How  that  has 
come  to  be  the  intolerable  scandal  it  is  may  now  be  to  some 
extent  understood,  but  the  lesson  will  require  to  be  rubbed  in 
to  the  public  mind  again  and  again  before  we  can  all  take 
in  its  meaning.  If  swift  remedy  be  not  found,  it  means  ruin, 
defeat.  The  whole  mischief  appears  to  spring  from  the  pas- 
sion, outcome  of  essential  incapacity,  of  the  present  administra- 
tion for  multiplying  departments.  That  seems  to  be  its  one 
and  only  idea  of  administering  the  affairs  of  the  country  in 
a  time  of  crisis.  No  Minister  seems  to  supervise  or  watch  any 
Work  himself.  When  he  comes  up  against  some  new  require- 
ment, some  fresh  difficulty,  forthwith  a  "committee"  is 
formed,  ad  hoc.  or  a  brand-new  "  department  "  created,  and 
Ihe  thing  is  supposed  to  be  done.  How  it  works  out  in  prac- 
tice was  illustrated  by  Mr.  Percy  G.  Donald  in  Monday's 
Times.  In  a  letter  to  that  paper  he  gave  a  painfully  amus- 
ing description  of  how  departments  prevent  each  other  front 
getting  work  done.  Goods,  he  says,  required  for  urgent  trans- 
port work,  which  could  have  been  supplied  without  interference 
in  from  six  to  eight  weeks,  actually  took  seven  months  in  de- 
livery. No  less  than  eight  public  departments  were  concerned 
in  this  triumphant  bungling,  which  went  on  from  April  4  last 
to  November  5.  The  departments  concerned  are  numbered  A 
to  G,  so  that  no  official,  or  group  of  officials,  is  hauled  over 
the  coals,  but  the  confusion,  cross  purposes,  bungling  inter- 
ference where  they  have  no  knowledge,  and  malign  jealousy 
are  so  vividly  illustrated  in  the  following  extract  from  the 
letter  that  we  give  it  as  it  stands  : — 
"4/4/17  Dept.  A  orders  for  urgent  work  in  France. 
8/4/17  Dept.  A  offers  to  arrange  delivery  with  Dept.  13. 
20/4/17  Dept.  A  are  advised    that  25   per  cent,  of  the  goods 

ready. 
21/4/17  Dept.  A    state    they     cannot    assist    in    moving    ihe. 

goods,   and   suggest  another  Dept. 
24/4/17  Dept.   C,  we  are  informed,   will  give   us  permits. 
25/4/17  Dept.  C  asks  to  see  original  Government  Order. 
27/4/17  Dept.  C  refuses  to  assist. 
'7/5/'"  Dept.  13,    after    three  weeks'    delay,   state    assistance 

will  be  given  us. 
23,/S/'7  Dept.  C  wakens  up,   and  asked  explanation    why  we 

secured   goods  from   the  market   as   we  did. 
21/6/ 17  Dept.  A  states  must    have   delivery. 
'9/7/>7  l^ept.  D.  has  to  be  written  to  for  further  permits. 
24/7/17  Dept. -E  seizes   part  of    the   goods   because  Dept.    1) 

has   given    no   permit. 
25/7/17  Dept.  B  refers  us  to  Dept.   F  over  the  matter. 
27/7/17  Dept.  D  asks  "  How  dare  we?  " 
1/8/17  Dept.  D  asked  by  us  to  give  "  permit  for  the  balance 

of  Older." 
a/8/17  Dept.  D  state   further  permit  must  be  sanctioned  by 

Dept.   G. 
24/8/17  Dept.  H  writes  to  us  as  instructed   by  Dept.  D. 
2  [5/8/17  Dept.  H  states  we  should  apply  to  Dept.  A. 
28/8/17  Dept.  D  state  cannot   help  us   unless  Dept.   F    dues. 
30/8/17  Dept.  D  still  regret   cannot  assist  us. 
3/9/17  Dept.  E    seizes   goods. 
17/9/17  Dept.    D  sends   permit. 
5/11/17  Balance  of  goods  received." 

Beyond  question  this  is  the  way  business  is  done  by  tlu; 
present  Government  all  through,  and  contemplation  of  the 
results  is  well  calculated  to  excite  feelings  of  apprehension. 
not  to  say  dismay.  If  the  Army  and  Navy  were  not  better 
nttended  to  than  this  method  of  conducting  our  affairs  indi- 
cates, well  might  we  look  forward  with  dread  to  the  comini; 
months.  These  departments  will  have  to  be  dragged  forth  to 
,  the  daylight,  so  that  we  can  see  how  they  are  haphazarded 
into  existence  to  muddle  for  our  undoing. 

The  difficulties  between  capital  and  labour  are  due  to  the 
siime  cause,  as  another  firm  in  writing  to  the  Times  also  points 
out.  "  When,"  the  letter  says,  "  we  got  an  order  for  our  patent 
machines,  which  we  could  have  sent  out  in  seven  days,  it 
took  Government  officers  seven  weeks  to  issue  the  necessarv 
permit  and  release.  Another  firm  on  the  Clyde,  whose  whole 
output  of  tool*  goes  to  shipyirds,  placed  an  order  with  us  fo. 
machines  we  h.-id  been  waiting  for  desp.itch  on  December  10, 
and,  after  three  and  a-half  months,  a  permit  has  not  yet  been 


procured  to  allow  the  goods  to  be  delivered."  What  is  Lord 
Pirrie  going  to  do  amid  a  chaos  of  this  description?  The  first 
thing  to  do  would  be  to  shut  off  the  whole  swarm  of  mush- 
room departments  that  come  within  the  range  of  his  work,  and 
to  set  the  shipbuilding  trade  free,  so  that  it  could  conduct 
its  own  business,  and  deal  direct  with  the  manufacturers  for 
whatever  is  required.  So  ignorant  are  these  individual  de. 
[artments,  not  only  of  the  principles  of  business,  but  of  the 
ordinary  routine  of  trade,  that  they  continually  give  contr.i- 
dictory  orders,  and  often  drive  producers  almost  out  of  their 
wits  by  their  foolish  interference.  We  know  of  authentic  in- 
stances where  a  department  has  ordered  night  shifts  to  be  put 
on  in  order  to  speed  up  work  that  it  imagined  delayed,  the 
actual  fact  being  that  there  was  not  enough  work  procurable, 
in  spite  of  the  continual  hammering  at  those  who  should  have 
given  it  out,  to  keep  the  works  attacked  employed  for  the  day 
shift  alone.  When  this  was  made  known  to  the  zealously 
domineering  functionary  who  ordered  the  night  shift,  he  could 
only  answer,  "I  did  not  know  that;  it  is  not  in  my  depan 
ment,"  and  so  ft  goes  on  everywhere,  until,  if  we  let  the  mind 
dwell  upon  the  resulting  muddle  and  waste  of  energy  and 
money,  we  should  despair  of  victory. 

Look  at  Lord  Inchcape's  story  about  the  projected  and 
partly  constructed  new  shipbuilding  yard  at  Chepstow,  on  the 
Wye.  It  also  is  to  be  found  in  last  Monday's  'limes,  and 
relates  that  towards  the  end  of  1915  Lord  Inchcape  and  some  of 
his  friends  drew  up  a  plan  for  creating  this  shipyard,  and 
subscribed  the  ^^600,000  necessary.  Land  on  both  sides  of  the 
river  was  purchased,  and  the  yard  was  laid  out  on  the  most 
approved  principles,  eight  slips,  capable  of  accommodating 
vessels  of  500  to  600  feet  in  length  being  arranged  for,  and 
the  work  was  pushed  forward  so  judiciously  that  two  slips 
would  have  been  ready  by  October  of  last  year,  and  on  these 
slips  two  vessels,  with  a  carrying  capacity  of  10,000  tons  each, 
would  have  been  lai3  down,  and  been  by  this  time  well  on  their 
way  to  the  water.  Other  two  .slips  would  have  been  ready 
by  now,  two  more  by  July,  and  the  whole  would  have  been 
available  for  work  by  next  October. 

But  in  August  last  the  Government  put  its  hand  in  and 
took  over  the  yard,  from  which  Lord  Inchcape  and  his  friend.s 
were  unceremoniously  evicted.  Since  it  did  so,  not  a- single 
ship  has  been  laid  down,  and  there  is  very  little,  if  any,  more 
plant  or  machinery  on  the  place  than  there  was  v.hcn  the  pri- 
vate company  was  turned  out.  Now,  as  Ixird  Inchcape  says, 
this  was  not  a  promoter's  venture.  Not  a  penny  was  spent  in 
promotion  money,  underwriting,  commission,  or  anything  else; 
the  projectors  of  the  yard  simply  "cast  their  ;{:6oo,ooo  on  the 
waters,  trusting  to  see  it  return  after  many  days."  "  .^t  the 
-same  time,"  Lord  Inchcape  goes  on,  "  I  venture  to  say  that  we 
were  actuated  by  patriotic  motives,  and  were  anxious  to  do 
our  bit  to  help  to  save  the  country."  For  this  praiseworthy 
energy  they  have  been  turned  down  and  out ;  their  work  has 
led  to  nothing;  the  blight  of  Government  departmentalism  is 
over  it  all.  What  has  Parliament  got  to  say  to  this  kind  of 
management  of  the  nation's  affairs?  How,  in  the  face  of  facts 
like  these,  can  a  Prime  Minister  get  up  and  beg  for  "the 
prayers "  of  his  fellow  countrymen  to  enable  him  to  get  on 
with  such  work?  The  heart  of  the  nation  is  roused;  its 
patriotism  is  as  true  and  loyal  as  ever;  but  all  is  being 
baulked  and  overlaid  as  with  a  deadening  fungus  growth  of 
officialism,  amateur  and  otTier.  Disguise  it  in  "  bursts  of 
eloquence"  as  we  may,  we  are  now  ruled  on  Prussian  lines. 
No  one  is  regarded  by  the  Government  as  competent  to  do  any- 
thing, least  of  all  to  manage  his  own  business,  and  it  is  only 
the  spirit  of  patriotism  which  prevents  m.iny  from  throwing 
up  in  disgust  and  weariness  the  work  they  are  ordered  to  dtx 
Ah,  the  reckoning  day  is  going  to  be  catastrophic. 


Committee    on    National  Expenditure. 

("  DonU  Mistake  Bustle  for  Business.") 

It  was  with  these  words  of  warning  thit  Mr.  Asquith  gave 
up  the  reins  of  office  in  favour  of  the  Northcliffe  Press  cabal, 
and  that  his  advice  was  not  only  sound,  but  prophetic,  has  been 
proved  on  many  occasions  since.  Take,  for  instance,  the  cases 
referred  to  in  the  previous  article.  If  these  were  isolated  in- 
stances it  would  be  bad  enough,  but  there  is  scarcely  a  'ousiness 
man  in  the  country  who  has  not  some  story  equally  discreditable 
to  tell.  Work  is  held  up,  men  are  laid  idle,  and  fine  healthy 
businesses,  on  which  the  prosperity  of  the  country  largely  de- 
pends, are  being  gradually  ruined,  either  by  the  active  inter- 
ference of  fussy  offici  lis  or  by  their  passive  resistance  in  re- 
fusing to  issue  the  necessary  permits  even  for  the  simplest  trans- 
actions. 


March  30,   1918. 


XTbe  3nv>e8toc8'  IRevicvv, 


319 


I'nfortunately,  while  this  state  of  affairs  exists,  the  spending 
<lepartnients  are  squandering  public  money  with  a  reckless 
lavishness  which  constitutes  a  serious  menace  to  the  future  of 
the  country.  Even  with  the  most  rigid  economy,  the  war  would 
be  a  terribly  costly  business,  but  the  immense  importance  of 
finance  is  almost  completely  ignored  by  the  swarms  of  newly, 
appointed  officials.  The  Ministry  of  Munitions  is  naturally  the 
greatest  sinner  in  this  respect,  because  it  had  to  be  formed 
hurriedly ;  it  had  no  established  organisation  or  traditions  as 
a  basis  to  work  upon,  and  the  sums  of  money  which  it  had  to 
handle  were  necessarily  colossal.  The  accumulated  extrava- 
gances,  however,  of  other  departments  created  dd  hoc  run  into 
scores  of  millions,  often  without  any  visible  benefit  to  the 
nation's  efforts  or  efficiency,  and  sometimes  quite  the  reverse. 
We  must  not  be  too  sanguine,  but  we  hope  that  the  Select  Com- 
mittee on  National  Expenditure,  which  the  Government  was 
forced  to  appoint  Urgely  owing  to  the  persistent  efforts  of  Major 
Godfrey  Collins,  will  be  able  to  secure  substantial  economies 
by  the  mere  exposure  of  some  of  the  more  flagrant  abuses  exist- 
ing. It  has  already  accomplished  much  useful  work,  and  if 
it  is  not  "snowed  under  "  the  mass  of  incompetence  (and  some- 
times we  are  afraid  corruption)  which  has  to  be  dealt  with, 
methods  may  be  evolved  that  will  ultimately  restore  to  the  House 
of  Commons  real  and  effective  control  of  the  public  purse.  For 
the  time  being  nothing  more  can  be  expected  from  it  than  to  let 
some  rays  of  light  into  the  system,  or  lack  of  system,  that  allows 
money  to  be  poured  out  like  water  for  no  adequate  return,  with 
the  result  of  enormously  increasing  the  expenses  of  the  war,  and 
incidentally  raising  the  cost  of  living  and  adding  to  the  in- 
flation which  a  great  war  always  brings  in   its  train. 

Originally,  the  Ministry  of  Munitions  was  divided  into 
three  main  groups — .Supply,  Finance,  and  Secretariat,  each 
under  a  separate  head — but  this  division  soon  broke  down,  and 
the  various,  sub-departments  became  practically  independent. 
As  recently  as  August  last  an  effort  at  co-ordination  was  made 
by  the  establishment  of  a  Munitions  Council,  each  member  of 
which  represented  a  group  of  departments.  To  precisely  what 
degree  the  member  of  Council  has  become  the  supreme  head 
of  all  the  departments  within  his  group  the  Committee  (Major 
Collins,  chairman)  has  not  succeeded  in  ascertaining.  There 
are  thirteen  groups,  but  the  Council  as  a  whole  meets  rarely, 
and  most  of  the  actual  work  is  carried  on  by  special  committees, 
including  a  co-ordinating  committee,  the  name  of  which 
reveals  the  interesting  fact  that  the  step  towards  co-ordination 
introduced  by  the  establishment  of  the  Council  involved  the 
further  step  of  co-ordinating  the  co-ordinators.  The  Select 
Committee  is  of  opinion  that  the  position  of  finance  on  the 
Council  should  be  greatly  strengthened,  in  order  that  finance 
may  exercise  its  proper  influence  where  the  real  control  ulti- 
mately rests ;  but  it  is  remarkable  that  finance  is  not  repre- 
sented on  the  Co-ordinating  Committee  of  the  Council.  The 
result  is  that  when,  for  instance,  questions  of  the  capacity  for 
production  arise  each  member  of  the  Council  representing 
supply  departments  is  solely  concerned  in  securing  the  largest 
.share  of  the  available  capacity  for  himself.  No  one  has  any 
inducement  to  reduce  his  claims,  but,  on  the  contrary,  in  order 
to  be  sure  of  obtaining  the  minimum  requirement,  each  one 
naturally  dememds  the  maximum.  There  is  no  check  such  as 
would  be  imposed  if  the  financial  controller  acted  as  arbiter. 
And  although  ample  funds  are  at  present  forthcoming  for  any 
necessary  expenditure,  or  what  is  alleged  to  be  necessary, 
economy  is  Highly  important,  especially  as  an  enforced  limita- 
tion of  expenditure  is  not  outside  the  bounds  of  possibility. 

-Accordingly,  Major  Collins'  Committee  recommends  that  an 
officer  responsible  for  .finance  should  be  associated  with  the 
Programme  Committee  in  the  consideration  of  the  demands 
made  on  the  Minis-try  of  Munitions  by  the  War  Office,  the  Air 
Council,  the  Admiralty,  and  the  Allies,  and  that  the  Finance 
branch  be  placed  in  the  closest  possible  relation  with  the  depart- 


ments of  Requirements  and  Statistics.  This  would  undoubtedly 
be  a  step  in  the  right  direction,  and  many  of  the  minor  recom- 
mendations of  the  Select  Committee  with  regard  to  the  more 
busines.slike  organisation  of  the  Ministry  would  be  greatly  sim- 
plified if  more  effective  financial  control  over  the  spending  de- 
partments were  established.  Apparently  it  is  feared  that  if  the 
sanction  of  the  finance  branch  had  to  be  obtained  for  every 
item  of  expenditure  needless  delays  would  occur,  and,  knowing 
the  habits  of  Treasury  officials,  it  may  be  admitted  that  there 
wcmld  be  some  danger  in  this  procedure.  But  between  petti- 
fogging interference  and  keeping  a  firm  grasp  of  the  broad  lines 
of  policy  there  is  a  wide  gulf,  and  the  excellent  work  already 
done  by  the  Select  'Committee  proves  that  the  problem  is  not 
an  insuperable  one.  At  all  events  it  is  imperative  that  the 
spendiiig  departments  should  be  impressed  with  the  necessity 
for  strict  economy  before  we  proceed  much  farther  along  the 
road  to  ruin. 


Uruguayan  Notes. 

With  almost  all  the  highly  developed  industrial  countries  in 
the  world  engaged  in  a  terrible  and  devastating  war,  there  has 
naturally  been  a  strong  demand  for  foodstuffs  at  phenomenally 
high  prices  from  those  countries  outside  the  zone  of  operations'. 
Among  such  countries  is  Uruguay,  where  the  favourable  trade 
movement  has  been  conspicuous.  Accomp.inying  this  improve, 
ment  in  the  economic  position,  however,  problems  of  finance  have 
tended  greatly  to  offset  otherwise  beneficial  results.  Chief 
among  these  has  been  the  difficulty  of  obtaining  cash  from 
abroad  in  payment  for  exports,  which  has  created  a  strained 
situation  in  regard  to  discount  of  bills  and  bewildering  fluctua- 
tions in  the  rate  of  exchange.  The  excess  of  exports  over  imports 
has  greatly  increased,  and  commercial  balances  have  grown  in- 
creasingly  favourable.  The  export  of  gold  by  the  Allied 
Governments  has  been  prohibited,  and  exchange  has  been  fast 
rising  to  a  point  which  would  mean  the  arrest  of  exportation. 
In  January,  1917,  the  rate  in  Monte  Video  was  535^d.  the 
dollar,  and  in  December  last  it  had  risen  to  6i5^d.  But  the 
Government  has  now  met  this  extraordinary  situation  by  special 
measures  which  .should  go  a  long  way  towards  bringing  about 
a  return  to  a  more  normal  state  of  affairs.  It  is  for  this  reason 
that  Uruguay  3^  per  cent,  bonds  have  been  requisitioned  by 
the  British  Government. 

Unfortunately  the  growth  in  Uruguay's  national  wealth  has 
not  been  accompanied  by  a  corresponding  improvement  in 
Government  finances.  Like  many  other  South  American  States, 
it  is  largely  dependent  for  its  revenue  upon  Customs  duties 
levied  on  imports,  and  with  a  restriction  on  the  inward  move- 
ments of  goods  revenue  has  displayed  a  very  perceptible  shrink- 
age. The  country's  budgetary  finance  has  always  been  of  a 
more  or  less  haphazard  character,  and  the  falling-off  in  Customs 
revenue  has  net  tended  towards  maturing  revenue  balance  ex^ 
penditure.  For  the  financial  year  ended  June  last  there  was 
a  deficit  of  nearly  four  million  dollars.  Half  the  deficit  was 
met  out  of  certain  special — but  not  recurrent — resources,  and  the 
remainder  by  an  issue  of  $2,000,000  of  the  iqi6  conversion  debt. 
Owing  to  the  impossibility  of  framing  reliable  estimates,  no 
Budget  was  presented  for  the  new  financial  year,  and  the  old 
Budget  was  prolonged,  having  incorporated  in  it  such  new  ex- 
penditure as  had  in  the  meantime  been  sanctioned  by  the 
Chambers.  Expenditure  is  not  increasing  so  rapidly  as  for- 
merly, tut  it  tends  to  get  larger,  and  the  current  ye.ar  may  see 
a  larger  deficit.  Prospering  as  the  country  is,  however,  there 
are  many  sources  to  turn  to  for  increased  revenue,  and  the 
Government  can  easily  have  recourse  to  new  forms  of  taxation 
should  the  occasion  demand  it.  The  sinking  fund  for  the  debts 
remains  in  abeyance,  but  the  interests  on  the  foreign  and  in- 
ternal debts  have  been  regularly  paid,  and  there  is  no  need  to 
anticip.ate  any  departure  from  this  state  of  affairs.  Of  course, 
the  continued  prosperity  of  Uruguay  under  war  conditions  is 
dependent  upon  the  shipping  position,  but  here  it  is  important 
to  bear  in  mind  that  her  exports  mostly  consist  of  prime  neces- 
sities. 


TD. 


STANDARD  BANK  OF  SOUTH  AFRICA,  L 

Bankers  to  the  Government  of  the  Unioi  of  South  Africa  in  Cape  Province;   t  ^  the  Imperial  Government  in  South  Africa  and  to  the  Administration 
_^  .  of  Rhodesia. 

Subscribed  Capital    ...    £6,194,100     I     Reserve  Fund     £2,000,000 

Paid-up  Capital £1,548,525     |     Uncalled  Capital         .-..   £4,6  45,575 


WM.   REIERSON  ARRUTHNOT,  Esq. 

SIR  DAVID  M.  BARBOUR,  K.C.S.I.,  K.C.M.G. 

ROBERT  E.  DICKINSON,  Esq. 


Board      of      Directors. 

JAME^   I'AIKBAIRN  FINLAY,  Esq.,  C.S.I. 
HORACE  PEEL.  Esq. 
WILLIAM  SMART,  Esq. 


Rt.  Hon.  LORD  SYDENHAM,  G.C.S.I., 

G.C.M.G..  G.C.I. E.,  G.B.E. 
H.  L.  M.  TRITTON,  Esq. 


Head  Offices   lO  CLEMENTS  LANE,  LOMBARD  STREET,  LONDON,  E.O.  4, 

Now  Yoi-k  Agency:— 68,  WALL  STREET,    Over  2SO  Branches  and  Agencies  in  South  and  East  Africa. 

EVERY  DESCRIPTIOI^  OF  BANKING  BUSINESS  transacted  with 
the  Cape  Province.  Natal,  Orang  •  Free  St  ite,  Transvaal,  Rhodesia, 
Nyasaland,  East  Africa  Protectorate,  Uijanda,  Zanzihar,  Portuguese 


East  Afrio  - ,  South-West  Africa  Protectorate,  and  the  Belgian  Congo, 
and  wi'h  the  Bink's  ^gencies  in  New  York  and  elsewhere. 

CURRENT  ACCOUNTS  are  opened  on  the  usual  terms. 

DEPOSITS  RECEIVED  for  fixed  periods  at  ra'es  which  may  be  ascer 
tained  on  application. 

BILLS  NEGOTIATED  AND  COLLECTED 


The  officers  of  thz  Bank  are  bound  not  to  disclose  the  transactions  o;  any  of  its  customers. 


MAH,  AND  TELEGRAPHIC  REMITTANCES  ma  e. 

LETTERS  OF  CREDIT  AND  DRAFTS  granted  on  the  branches  and 

Agencif-s  of  'he  Bank. 
THE  BA\K  ISSUES  C  RC    LAR  LETTERS  OF  CREDIT  available 

in  all  parts  of  the  world. 
COMMERCIAL  LETTERS  OF  CREDIT  ISSUED. 
PURCHASE  AND  SALE  OF  STOCKS  AND  SHARES  eEfected. 
DIVIDENDS,    "NNUITIES.  Ac.  received. 
EXhXUTOR  AND  TRUSTEE  Business  undertaken. 


FRANCIS  SHIPTON,  Lonlon  Manager. 


I 


320 


Zbc  5nve6tor8'  IRevtew, 


March  30,  191 8. 


Income-Tax  Guides  and  Lessons. 

{Copyright  Rtservei.) 
II.— Continued. 

DiVIDKNDS    "  FRKE    of    TAX." 

It  is,  we  think,  now  becoming  fairly  well  known  that  the 
words  •'  free  of  tax  "  are  misleading.  If  you  receive  a  dividend 
of  /30  so  marked,  that  means  that  the  dividend  is  really,  at 
present,  £^0,  and  in  any  statement  of  income  or  claim  for 
repayment  you  enter  £*"  ^  «he  income  from  that  source,  and 
/lo  as  the  tax  which  you  have  borne  upon  it.  The  fact,  of 
course,  is  that  the  company  has  paid  the  tax  on  your  account. 
It  will  be  noted  that  the  /lo  is  more  than  5«.  per  £  on  the 
cash,  /30,  which  would  be  only  £7  los.,  but  to  treat  it  in 
this  last  way  would  be  wrong. 

ANNUITIES  "  KRKK   of  TaX." 

Until  now  the  practice  of  the  Department  has  been  to  refuse 
to  recognise  any  right  to  repayment  of  Ux  in  the  case  of  annui- 
ties  bequeathed  free  of  tax.  They  refused  it  to  the  annuitant 
because  by  the  will  she  was  limited  to  the  stated  annuity,  and 
could  not  (so  it  is  or  was  argued)  have  any  rights  beyond. 
She  got  all  that  bequeathed  to  her,  and  she  must  therewith 
be  content.  They  also  refused  it  to  the  ultimate  beneficiary, 
because  (so  it  is  or  was  argued)  it  is  not  his  income,  and, 
therefore,  cannot  be  his  tax,  so  what  rifjht  has  he  to  claim  it? 
The  nett  result  was  that  the  Exchequer  kept  tax  to  which  clearly 
it  had  no  right.  We  are  given  to  understand. that  this  is  to  be 
modified,  in  some  partial  and,  as  we  gather,  very  illogical 
way,  in  favour,  not  of  the  annuitant,  but  of  the  party  in- 
terested behind  the  annuity.  If  this  be  so,  and  if  arrears  are 
claimable,  the  matter  is  urgent  at  this  season  of  the  year,  for 
one  year's  (1914-15)  money  will  be  lost  if  not  claimed  by 
April  5.  .    . 

Considerations  of  space  compel  us  to  pass  our  remaining 
heads  in  rapid,  but  we  hope  sufficient,  review. 

Residences.— The  house  you  live  in,  if  your  own  property, 
must  go  down  in  any  statement  of  income,  at  the  nett  Schedule 
A  assessment.  This  does  not  hold  in  regard  to  official  resi- 
dences, which  the  occupant  cannot  let,  and  is  probably  bound 
to  inhabit.  These  do  not  count  as  "income"  at  all.  Manses 
of  dissenting  clergy  are  not  part  of  the  minister's  income ;  the 
official  residences  of  the  clergy  of  the  Church  of  England  and 
the  Church  of  Scotland  are  their  (earned)  "income."  An 
ordinary  professional  man  may  charge  a  part  (not  exceeding 
two  thirds)  of  the  annual  value  of  his  residence  as  expense  of 
earning  his  income  if  he  has  home  and  office  or  surgery  in  one. 
A  minister  who  pays  rent  may  deduct  from  income  a  part  not 
exceeding  one-eighth  of  the  rent.  The  general  rule  is  that 
nothing  is  income  which  you  are  not  entitled  to  turn  into 
money.  Thus,  free  lodging,  board,  and  service,  though  very 
valuable,  are  not  "  income." 

Capital  Increments. — These  are  not  income,  for  example,  if 
you  sell  your  house  at  a  profit  (at  present  very  unlikely),  or 
n-.ake  some  money  on  the  Stock  Exchange.  The  same  thing 
applies  to  the  purchase  of  life  policies  on  other  people's  lives, 
or  redeemable  stocks  at  a  discount.  No  tax  is  payable  on  these 
increments.  Per  contra,  corresponding  losses  may  not  be  set 
against  income. 

Treasury  Bills. — It  is  a  question  whether  the  discount  on 
these  is  taxable  income.  The  department  claim  tax  on  it  in 
the  year  when  the  bill  maitures.  Very  eminent  counsel  have 
advised  that  the  claim  is  bad,  and  that  the  discount  need 
not  go  into  any  statement  of  income. 

Untaxed  Interest,  (Sr-c. — By  this  we  mean  interest  and  dis- 
count received  without  taxation  at  the  source.  Examples  are 
interest  on  Government  war  issues  if  non-bearer;  Bank  deposit 
interest,  and  discounts  on  Treasury  bills  if  these  are  income 
at  all.  All  these  are  received  free  of  fax  in  the  sense  that 
the  payer  does  not  take  off  tax.  The  form  of  paying  the  tax 
is  a  direct  assessment  under  Schedule  D.  And  here  the  point 
is  that  each  year's  assessment  on  this  branch  is  based  on  the 
figures  of  such  income  lor  the  previous  tax  year.  You  may 
h.ive,  say,  £i<^o  of  this  kind  of  thing  this  year,  but 
last  year  perhaps  only  ;f  10 ;  well,  then,  this  year  you  (not 
only  may,  but)  ought  to  return  /lo  onlv.  Incidentally,  if  you 
are  concerned  in  the  Treasury  Bill  question,  this  gives  you 
one  year's  grace  in  which  some  one  else  (probably  a  combina- 
tion of  wealthy   Life   Offices)   may  fight   the  Government. 

Colonial  Income-tax. — This  refers  to  any  income  received 
after  being  subjected  to  colonial  or  Indian  income-tax.  The 
subject  is  complicated,  but  the  general  rule  is  that  a  remission 
is  allowed  off  the  British  tax  of  the  colonial  or  Indian  tax,  but 
not  exceeding  is.  6d.  per  £.  This  means  that  it  is  no  conces- 
sion at  all  to  anyone  whose  income  does  not  exceed   ^f  1,000. 

Foreign,  Indian,  and  Colonial  Income  is  divided  into 
"securities"  and  "possessions."  The  former  comprise  mort- 
gages and  such  like;  the  l-itter.  lands.  Src,  company  interests, 
and  partnership  shares.  The  rules  are  (i)  income  from  securi- 
ties is  taken  on  the  amount  of  the  year  of  assessment,  whether 
brought  home  or  not;  (2)  income  from  possessions,  on  the 
Average  of  the  preceJin?  three  years,  brought  home  or  not, 
except  that  (1)  income  from  partnerships  not  controlled  from 
this  country  is  taken  on  the  Bvera^e  brought  home  in  the  pre- 
ceding three  years.  This  list  is  the  important  thing  to  know. 
Tn  a  suitable  case  it  may  honestly  be  utilised  so  as  to  effect 
a  considerable  saving. 

Broken  Periods. — Part  of  the  year  may  be  the  whole  year  for 
tax  purposes.  Thus,  if  a  'fldy  has  £t.ooo  a  ye«T  from  invest- 
ments, and  marries  about  June  1,  1918,  the  proportion  of  her 


income  for  the  short  period,  April  5  to  June  i,  is  her  total 
income  for  tax  purposes  for  the  tax  year  1918-19,  and  as  it  does 
not  exceed  £1^0,  she  is  entitled  to  total  exemption  for  that 
year.  That  means  that  she  gets  full  repayment  of  all  tax  on 
the  income  corresponding  to  that  short  period.  It  makes  no 
difference  that  her  income  continues  secured  to  herself  after 
the  marriage  just  as  before,  for  in  law  (i.e.,  tax  law)  it  is 
reckoned  part  of  her  husband's  income  so  far  as  accruing  after 
the  marriage,  and  no  doubt  his  tax  rat©  may  be  sent  up 
accordingly.  Again,  if  a  man  with  an  income  of  £2fi^o  a 
year  (earned  or  unearned)  lives  only  till  May  5,  the  one  inonth's 
income  (;S22o)  is  his  year's  income.  He  is  therefore  entitled  to 
the  scale  abatement  of  /120,  and,  say,  £100  for  four  young 
children.  These  together  come  to  /220,  and  no  tax  is  pay- 
able. These  ahatemervts  are  taken  at  a  fu'l  year's  figures,  the 
very  point  being  that  the  month  is  the  year.  What  shall  be 
charged  after  his  death  depends  on  different  factors  altogether, 
m-.mely,  the  income  position  of  his  heirs.  Finally,  if  an 
annuity  of  £2^0  is  left  to  a  person  starting  October  5,  and  he 
lives  to  enjoy  it  for  only  one  year,  he  pays  no  tax  at  all, 
assuming  no  other  income.  The  reason  is  that  he  draws  /125 
in  each  of  two  different  tax  years,  and  so  he  is  exempt  in  both 
years.  If  the  annuity  had  started  on  April  5  and  he  had  lived 
a  year,  his  tax  would  have  been  £ic)  los.  Such  are  the 
vagaries  of  law,  dates,  and  figures. 

War  Savings  Certificates.— The^  are  great  from  the  point 
of  view  of  income-tax.  First,  as  to  the  income  on  the  actual 
investment,  it  is  ab.solutely  tax-free,  and,  indeed,  it  is  not  to 
be  reckoned  as  "  income  "  at  all  in  any  shape  or  form.  But, 
second,  as  to  the  other  income  of  the  investor,  the  abstraction 
of  what  would  have  been  yielded  by  the  amount  paid  into 
these  Certificates  may  have  most  important  income-tax  resulU. 
ft  may  in  a  suitable  case  score  all  the  advantages  of  the  mar- 
ginal relief  with  this  radical  difference,  that  instead  of 
presenting  the  excess  income  to  the  Exchequer,  it  is  care- 
fully saved  up  and  accumulated  to  your  credit  at  a  splendid 
rate  of  interest,  and  with  absolute  security,  and  meantime  the 
country  has  the  use  of  the  money  to  carry  on  the  war. 

War  .Service  Pay.— There  is  a  specially  low  rate  of  tax  on 
the  pay  of  naval  ar»d  military  men,  mercantile  marine,  and 
fishermen,  and  they  have  various  other  tax  advantages.  Some 
of  these  have  been  mentioned  above,  and  that,  plus  this  note. 
must  suffice.  ^^___^___ 

Insurance    News. 

During  the  past  year  the  number  of  proposals  completed 
by  the  United  Kingdom  Temperance  and  General  Provident 
Institution  was  2,209  for  £c,3^,S3^,  a  reduction  of  /14O.770 
when  compared  with  the  previous  year's  total.  The  nett  amount 
retained  was  ^922,532,  or  £^,770  less  than  in  1916,  new  pre- 
miums amounting  to  £a?:,2ti,  including  ;^n,i4o  single  pre- 
miums. Although  the  new  business  was  large  and  satisfac- 
tory naturally  it  was  less  than  prior  to  the  war.  Claims  from 
death  amounted  to  ;^487,096.  Actual,  as  compared  with  ex- 
pected, mortality,  was  again  favourable,  the  total  payments 
being  86.4  per  cent,  of  number,  and  81.7  per  cent,  of  the  amount 
expected.  In  the  previous  year  the  death  claims  were  85.6  \ttr 
cent,  of  the  expected  amount,  or  73.8  per  cent,  apart  from  war 
claims.  Working  expenses  were  reduced  from  11.3  per  cent,  to 
10.75  P^""  <^*"'-  °f  'he  premium  income.  As  the  result  of  the 
year's  operations,  the  accumulated  funds  were  raised  by 
^^315,381  to  ;^io,562,389,  and  the  nett  rate  of  interest  earned 
was  /3  16s.  6d.  per  cent.,  or  $d.  per  cent,  more  than  in  1916. 
In  common  with  other  marine  offices,  the  Union  Marine  In- 
surance Company  had  a  highly  successful  year's  experience, 
and  by  the  payment  of  a  further  dividend  of  13s.  6d.  per  share 
the  total  distribution  for  the  year  is  raised  to  £\  a  share,  as 
compared  with  15s.  for  1916.  Moreover,  the  dividend,  as 
usual,  is  paid  free  of  tax,  a  very  important  consideration  to  be 
borne  in  mind.  This  dividend  of  20s.  compares  with  10s. 
paid  for  191 5.  During  the  past  year  the  "nett  premiums 
received  were  ;,;;'2,37i,564— an  increase  of  no  less  than  £c^.t,in. 
while  the  claims  settled  on  191 7  account  came  to  ;it929,84i,  an 
increase  of  /38i,790.  The  balance  of  profit  and  loss  account, 
after  deducting  the  interim  dividend  of  6s.  6d.,  writing 
;fj8,ooo,  or  ^1,000  more,  off  investments,  and  making  provi- 
sion for  special  taxes,  was  ^386,129  as  contrasted  with 
.if.35.v35°  ^  y^^"^  ^S°'  when  the  interim  dividend  was  4s.  The 
total  assets  now  amount  to  ..^3,116,000. 

After  paying  a  dividend  of  20  per  cent,  for  several  years,  the 
directors  of  the  Scottish  Insurance  Corporation  have  increased 
the  distribution  to  25  per  cent,  for  1917.  The  year's  income 
was  /■28q.8i8,  an  increase  of  /■7o,i66,  and  the  total  assets  were 
increased  by  ^73,523  to  /663,738.  .      ^        .  j 

Underwriters  doing  fire  insurance  business  in  Canada  arid 
the  United  States,  after  .their  unsatisfactory  experience  in 
January,  when  the  estimated  losses  came  to  ^7, 51 5.000,  were 
relieved  to  find  that  the  losses  in  February  were  appreciably 
lighter  at  ^^4,138,000,  this  total  being  about  jfi, 780,000  below 
that  of  the  corresponding  March  last  year. 


OILFIELDS     PRODUCTION. 

Maikop  Orient.— Plot  435a.   We'l  3.-13,100  poods  for  week 
ended  .March  2,  and  week  ended  March  9,  11,000  poods. 

United  British  Oilfields.— 3,235  tons  for  week  ended  March  20. 


March  30,   1918. 


XTbe  Jnveetors'  IRevlew. 


321 


By-the-Way  War  Notes. 

In  face  of  the  stupendous  struggle  now  proceeding  between 
our  armies  and  the  Prussian  we  at  home  must  do  the  utmost 
possible  to  keep  serene.  Our  fault  at  home  has  all  along  been 
a  too  great  credulity  in  regard  to  the  boasts  of  the  enemy. 
He  has  had  successes,  but  never  a  triumph  such  as  was  re- 
quired by  him  to  force  the  war  to  an  end  in  his  way  ;  but  he 
has  talked  of  every  success  as  if  it  were  just  that  triumph,  and 
we  have,  unconsciously  perhaps,  often  more  than  half  believed 
him.  The  same  game  is  proceeding  now.  Boasts  of  great 
tights  for  spots  in  the  front  taken  by  "  brilliant  assault  "  inter- 
lard every  Prussian  bulletin,  the  truth  often  being  that  the 
places  named  are  surrendered  without  fighting  by  our  com- 
manders in  pursuance  of  their  determination  to  save  our  men 
irom 'useless  massacre  and   to   maintain   our  lines  intact. 

A  look  at  the  maps  published  in  the  newspapers  does  not  con- 
vey much  in  the  way  of  reassurance  to  the  ordinary  reader  who 
may  not  understand  that  the  German  drive  now  being  executed 
would,  if  successful,  divide  our  armies  from  the  French  and 
open  the  way  both  to  Paris  and  to  the  Atlantic.  But  at  least 
the  mere  casual  reader  can  see  that  the  fight  is  now  above 
ground,  and  understand  that  if  the  progress  made  has  cost 
the  German  armies  within  one  week's  fighting  a  loss  of  probably 
at  least  500,000  men,  then  our  resistance  to  the  advance  has  but 
to  continue  as  strenuous  as  it  has  been  hitherto  and  in  a  few 
more  weeks  this  terrific  fighting  must  break  the  power  of  the 
Prussians  for  ever.  They  cannot  afford  to  burrow  underground 
again  as  they  did  after  their  defeat  in  1914,  for  to-day  they 
are  faced  by  famine  and  utter  ruin.  Therefore  the  thing  to 
keep  our  attention  upon  is  the  success  with  which  we  force  the 
enemy  into  the  open  .ind  to  use  up  more  and  more  of  his  reserves 
in  order  to  be  able  to  bluff  about  victory,  victory  until  his  artifices 
in  diplomacy  tricks  us  into  a  treacherous  "  truce  "  or  peace. 
In  stern,  grim  silence  we  must  fight  out  the  fight,  refusing  all 
parleying. 

It  is  a  horrible  business.  The  slaughter  will  probably  far 
exceed  even  that  of  the  six  days'  conflict  called  the  Battle  of 
the  Marne ;  but  we  shall  face  it  with  unflinching  resolution, 
until  the  hydra  has  been  slain.  Are  these  Prussian  Junkers  such 
fools  as  to  think  now  that  they  can  beat  the  Allies  down  with 
America  ranged  by  their  side?  Or  that  they  can  bluff  and 
bully  us  into  a  false  peace,  even  as  they  have  Russia?  Per- 
haps ;  they  are  probably  unteachable.  We  must  not  pause  to 
inquire.  Our  duty  is  to  fight  until  mankind  is  delivered 
from  its  deadly  peril. 

And  there  can  be  no  doubt  but  that  we  will  do  this.  The 
conduct  of  our  troops  in  all  the  battles  they  have  fought,  and  in 
this  one  probably  most  of  all,  has  been  splendid.  Language 
fails  us  sufficiently  to  appraise  the  stedfastness  and  unflinching 
courage  to  the  death  and  to  the  last  man  with  which  these 
soldiers  of  ours  face  the  storm  of  shot  and  shell,  the  waves  of 
poison  gas  and  all  the  devices,  each  more  diabolical  than  the 
other,  with  which  they  have  to  contend.  When  discouraged, 
therefore,  we  have  only  to  turn  and  behold  our  troops  and  their 
fighting  to  be  reassured.  Our  troops  are  worthy  of  their 
Allies  and  of  the  utmost  support  we  can  give  them. 

Never  on  the  side  of  the  Army  or  the  Navy  have  we  had 
doubts.  As  we  have  often  said,  it  is  only  when  we  look  at 
home  that  fear  steals  over  the  mind.  We  hope,  however,  that 
Mr.  Lloyd  George  was  more  than  usually  loyal  to  facts  when 
he  telegraphed  to  Sir  Douglas  Haig — "The  men  necessary  to 
replace  all  casualties  and  the  guns  and  machine-guns  required 
to  make  gocd  those  lost  are  either  now  in  France  or  already  on 
their  way,  and  still  further  reinforcements  of  men  and  guns  are 
ready  to  be  thrown  inlo  The  battle."  That  is  Indeed  good  news 
if  the  whole  truth,  for  the  fussy  furies  of  home  mismanagement 
often  make  us  afraid  lest  we  should  be  caught  deficient  at  a 
critical  hour.  The  victory  now  is  to  the  one  who  can  longest 
hold  out.      Germany's  race  is  nearly  run. 

Another  basis  of  consolation  is  to  be  found  in  the  very 
desperation  of  the  German  attack.  William  Hohenzollern  and 
his  generals  are  so  reckless  of  men's  lives  as  to  reveal  them- 
selves desperate.  Consequently,  the  victory  they  strain  after 
would  be  their  ruin.  Should  they  continue  long  day  by  day 
to  throw  tens  of  thousands  into  the  vortex  of  battle  as  they 
have  done  since  this  onslaught  began,  tlie  "Fatherland"  they 
have  blighted  would  sink  beyond  hope  of  revival.  Exhaustion  is 
creeping  through  their  ranks  now,  although  we  must  not  count 
on  that,  and  it  must  increase  the  longer  their  monster  armies 
are  subjected  to  the  strain.  But,  as  we  have  said,  they  had 
no  choice.  The  day  is  close  at  hand  when  the  people  of 
Germany,  whom  the  I'russian  savage  has  ensnared  to  their 
ruin,  must  either  accept  defeat  and  its  consequences  or  starve. 
Even  a  victory  to  the  German  armies  in  France — which  the 
Allies  must  make  unattainable— would  now  be  too  late  to  save 
the  Junker  slave-drivers  from  the  consequences  of  their  insane 
ambitions.  But  as  yet  the  German  peoples  do  not  see  that,  and 
hang  on  the  bulletins  that  come-  from  the  headquarters  with 
an  indescribable  longing  that  the  next  one  may  tell  of  the 
war  won  and  of  food  arriving.  The  Hohenzollern  Kaiser  and 
his  soldiers  have  no  choice  but  to  stake  all,  even  the  loss  of  the 
nation's  manhood,  on  this  tremendous  conflict,  in  hope  of  their 
victory  even  in  this  eleventh  hour.  Ah,  how  different  this  from 
the  da.shing  progress  of  the  war  of   1870  ! 

We  believe  the  hour  of  the  German  final  defeat  draws  near, 
and  that  out   of  that  defeaf  will  spring  deliverance  for   man- 


kind from  many  an  old  superstition  and  soul-beguiling  legend, 
from  the  tyranny  also  of  certain  families  called  kingly  or 
imperial,  and  that  over  the  world  will  spread  such  a  peace  as 
It  has  never  known  since  the  empire  of  the  Roman  Caesars 
began  to  fall  into  decay,  a  peace  of  races  and  nationalities 
based  on   sympathy,  justice,  and  goixl-fellowship. 

We  must,  therefore,  have  courage,  and  press  on— courage, 
and  also  perseverance  and  self-den'al.  In  the  beginning  of 
this  week  a  letter  from  Mr.  George  Sutton,  a  well-known 
member  of  the  Harmsworth  newspaper  staff,  now  Director  of 
Publicity  to  the  National  W'ar  Savings  Committee,  was  pub- 
lished by  the  newspapers,  in  which  he  said  :  "  At  this  moment 
we  solemnly  appeal  to  the  British  people  to  remember  their 
duty  by  backing  with  their  money  the  men  who  are  paying  with 
their  blood.  It  is  of  vital  importance  thai  the  waste  of  war  should 
immediately  be  made  good.  More  guns,  more  shells,  more 
tanks,  more  aeroplanes,  more  supplies  of  every  kind  will  be 
required,"  and  he  goes  on  to  urge  that  "  every  shilling  the  people 
can  spare"  should  be  lent  now  by  investing  either  in  National 
War  Bonds  or  in  War  Savings  Certificates.  One  feels  almost 
a  humiliation  to  have  to  record  pleadings  of  this  kind,  and  it 
is  impossible  to  avoid  a  certain  .sense  of  puzzled  astonishment 
at  the  sight  of  men  freely  giving  their  lives  for  their  country, 
for  the  noble  ideal  which  elevates  humanity  and  leads  k  on, 
and  these  same  men  clinging  to  their  money  as  if  it  were 
more  to  them  than  life  itself  or  than  the  God  they  profess  to 
trust.  Our  self-denial  and  sacrifices  are  only  beginning,  and 
we  must  see"  to  it  now  that  they  are  as  loyal  in  fellowship, 
as  systematic  and  self-abnegating,  as  the  heroic  conduct  of  our 
soldiers  in  the  battle  line. 

Our  air  warriors  continue  to  display  their  mastery  over  the 
Germans,  they  and  fheir  French  colleagues.  Because  of  this, 
therefore,  the  Germans  seem  to  have  devised  and  manufac- 
tured a  monster  gun  with  which  they  have  been  flinging  shells 
on  Paris  from  70  or  more  miles  away.  Wonderful,  is  it  not? 
So  ingenious,  and  so  well  calculated  to  frighten  the  French 
into  begging  for  mercy  !  Really,  the  stupidity  of  the  Boche 
is  beyond  measuring.  Displays  of  a  grotesque  impotence  such 
as  this  serve  but  to  convince  us  that  Germany  is  in  exlremis, 
that  both  the  courage  and  the  power  to  fight  on  to  victory  are 
evaporating  in  the  Fatherland,  from  which,  as  Mr.  Gerard  says, 
all  who  can  will  escape  when  the  war  is  over.  Indemnities 
from  the  Allies  are  .still  dreamed  and  drivelled  about  in  Ger- 
many the  abandoned,  but  the  war  has  lasted  long  enough  to 
make  their  exaction  impossible,  and  without  them,  without 
"victory"  likewise,  what  prospects  can  a  land  devoured  by 
waging  war  offer  to  the  German  youth? 

The  results  of  six  days  of  German  efforts  are  known  to  us 
this  (Wednesday)  morning.  Unspeakably  horrible  has  been  the 
fighting,  unparalleled  the  slaughter — except  at  Verdun, 
perhaps— and  what  have  the  enemy  gained?  A  few  miles  of 
land  already  devastated  by  them,  our  old  line  on  the  Somme, 
or  a  bit  of  it,  some  material,  a  few  prisoners — nothing  like  the 
numbers  of  either  their  bulletins  claim— and  failute.  They  have 
not  divided  the  French  from  the  British,  nor  have  they  at  any 
point  broken  our  line.  Probably  half  a  million  of  their  poor 
fighting  pawns  have  been  sacrificed  in  these  six  days,  and  the 
Prussian  savage  is  no  nearer  his  goal  than  he  was  when  he 
began,  much  less  likely  to  get  to  Paris  than  he  was  in  August, 
1914. 

What  is  he  to  do  next?  He  must  go  on  fighting,  continue 
using  np  the  males  of  Germany  until  none  are  left  fit  to  fight, 
because  he  is  a  vain,  malignant  monster  whose  mad  pride 
will  not  allow  him  to  admit  that  he  can  be  beaten.  That  is 
the  doom  high  Heaven  has  pronounced  against  the  miasmatic 
dreams  of  Pan-Germanism.  A  few  more  weeks  and  the  agony 
of  want  will  make  the  interior  of  Germany  like  an  outpost  of 
hell,  and  the  imminence  of  that  hunger  fury  forces  William 
Hohenzollern  and  his  cunning,  inhuman  war  leaders  to  press 
on.  After  all,  they  may  well  argue,  it  may  be  safer  to  let  the 
enemy  kill  off  "our  people,"  for  if  allowed  to  live  they  might 
kill  us.  So  they  thank  their  god,  or  gods,  patronise  the 
Almighty,  and  hasten  to  the  waiting  judgment.  We  have  no 
cause  to  fear.  Steadfast  and  valiant  to  the  death,  we  know 
that  the  victory  is  near. 


BOOKS    RECEIVED. 


LfS  Garanties  de  la  Paix.  Premikre  Partie  les  Lecons  du 
Passe.  Par  Yves  Giiyot.  Librairie  Felix  Alcan,  108,  Boulevard 
Saint-Germain,  Paris.     Prix  3fr.  50C. 


The  Yokohama  Specie  Bank,  Ltd.,  has  opened  new  branches 
at  Manila  and  at  Shimonoseki. 

The  directors  of  the  Union  Bank  of  Manchester,  Ltd.,  in  a 
circular  to  their  shareholders,  state  that  it  is  desirable  to  sub- 
divide the  present  shares  of  ^^21;  each,  ^11  paid  up,  into  five 
^5  shares,  £2  4s.  paid  up.  They  also  propose  to  increase  the 
amount  paid  up  on  each  of  these  £^  shares  to  £2  los.,  and 
the  funds  for  this  purpose  will  be  provided  by  the  bank.  This 
step  is  in  the  direction  of  simplification,  and  the  bonus  of  30s. 
on  the  existing  shares  is  not  to  be  despised. 


322 


Zbc  Jnveetors'  IRevtew. 


March  30,   1918. 


In  these  days,  when  wide  circulation  of  papers 
tlirough  the  post  is  impossible,  we  rely  on  news- 
p  iper  advertisement  to  remind  our  friends  that  we 
look  to  them  to  do  what  they  can  to  make  the 
merits  of  the  Society  known  in  their  own  circles. 

The  Clerical's  strong  2i  per  cent.  Valuation, 
unbroken  Eonus  record,  and  attractive  rates  of 
premium,  carry  great  weight  with  everyone  who 
is  selecliiig  an  office  in  which  to  assure  his  life 
in  these  hazardous  times.  —  A.  D.  Besant, 
General  Manager  and  Actuary,  Clerical,  Medical 

and  General  Life  Assurance  Society.    15,   St. 

James's  Square,  S.W.  1,  London. 


ASSURANCE  CO..  LTD. 


NATIONAL  BENEFIT 

ASSETS    EXCEED        -  -        £1,000,000. 

Attpaotive   LIFE,    FIRE,  ACCIDENT  &  MARINE  Policies. 

HEAD    offices: 

NATIONAL    HOUSE,    Newgate    Street,   LONDON,    EC.  1. 

Managing  Director;  J.  Francis,  J. P.,  F.S.S. 


Hbe  investors'  IReview. 


Money    and   Credit   Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5 J  percent,  on 
Thursday,  April  5,  19x7.) 


Norfolk  House,  Wednesday  Evening. 

Money  has  been  for  the  time  in  good  demand  these  last  three 
days,  and  call  loans  have  sometimes  cost  as  much  as  4  per  cent., 
at  which  rate  the  Bank  ilselt  has  lent  a  little  for  a  few  days, 
but  money  soon  eased  again,  so  that  a  small  amount  due 
yesterday  at  the  Bank  was  almost  all  paid  off.  The  discount 
market  tends  to  be  somewhat  easier.  A  small  foreign  demand 
for  bills  was  reported,  but  otherwise  the  market  is  wonderfully 
calm,  waiting  events. 

The  Treasury  has  decided  to  requisition  the  bonds  of  the 
Uruguay  3i  per  cent.  Consolidation  Loan,  but  on  conditions 
totally  different  from  previous  requisitions.  The  bonds  will 
be  borrowed  by  the  Treasury  for  an  indefinite  period,  to  be 
determined  on  three  months'  notice  from  the  Treasury.  Although 
holders  have  no  option  in  the  matter,  we  imagine  that  they 
will  be  only  too  glad  to  place  their  holdings  at  the  disposal 
of  the  Treasury,  for  they  will  receive,  in  addition  to  the 
interest,  an  extra  J  per  cent,  per  annum  for  the  period  of  the 
loan.  Bonds  must  be  delivered  to  the  American  Dollar  Securi- 
ties Committee,  19,  Old  Jewry,  E.C.,  on  or  before  April  22. 
Should  the  Treasury  subsequently  decide  to  purchase  the  bonds 
outright,  they  will  pay  compensation  to  the  holders  at  the  rate 
of  764  per  cent.,  the  present  market  value  of  the  bonds. 

There  has  been  an  appreciable  recovery  in  the  value  of 
sterling  in  neutral  countries  this  week,  despite  the  news  from 
the  Western  front.  This  is  significant  and  rather  encourag- 
ing, for  it  shows  a  growth  of  neutral  confidence  in  the  Allied 
armies.  Stockholm  has  risen  45  points  to  14.10  kr.,  Chris- 
tiania  35  points  to  ii;.o5  kr.,  and  Copenhagen  27  points  to 
•.5-30  Ifr.  The  Spanish  exchange,  however,  has  fallen  to  a 
fresh  low  level,  touching  18.66.  Lire  have  depreciated  rather 
sharply,  the  pound  sterling  being  now  equivalent  to  41. 42^ 
lire,  and  the  French  exchange  has  also  risen  to  about  27.21;  fr. 
The  Montevideo  exchange  has  advanced  i|d.  to  62d..  which  is 
nearly  one  shilling  above  the  par  of  exchange.  This  is  the 
explanation  of  the  Treasury's  decision  to  requisition  Uruguay 
bonds. 

Under  the  terms  of  the  arrangement  by  which  the  Bank  of 
Montreal  will  absorb  the  Bank  of  British  North  America,  share- 
holders  in    the  latter    will    receive    ;^7s   in   cash    for   each    /w 

\^^i  °'  •^'°  """^^  "'^"  '^^  market  price.  Shareholders  will 
also  be  given  the  option  of  taking  cash  or  exchanging  their 
shares  at  the  rate  of  two  $100  shares  of  the  Bank  of  Montreal 
tor  such  share  of  the  Bank  of  British  North  America.  We 
learn  meanwhile  that  the  proposal  to  set  up  a  rediscount! ng 
bank  in  Canada  is  not  regirded  as  b"!,!?  in  the  realm  of  prac- 
tical politics  at  present.  It  is  agreed  that  such  a  bank  will 
have  to  be  established,  esperiallv  ,^s  New  York  develops  its 
positinn  as  an  international  monetarv  centre^-and  in  this  con- 
siderable  procress.  we  hear,  is  being  made— but  it  seems  un- 
likely  that  active  steps  will  be  taken  to  give  effect  to  the  sugees- 
tion  now. 

Grieved  indeed  are  we  to  record  the  death,  on  the  24th 
instant,  of  Mr.  David  George,  manager  of  the  Bank  of  New 
South  Wales.  2q,  Threadneedle  Street.  E.G..  at  the  age  of  7,. 


Mr.  George  was  born  at  Wick  in  1844,  and  entered  the  service 
of  the  bank  as  a  junior  in  1862.  He  held  successively  the  offices 
of  accountant,  secretary,  and  manager.  He  attained  his  jubilee 
in  the  bank  on  January  24,  1912.  He  was  in  active  service  at 
the  bank  up  to  about  three  weeks  prior  to  his  death.  He  was 
widely  known  in  banking  circles  in  the  City  and  among  Aus- 
tralian and  New  Zealand  visitors  to  this  country,  being  one  of 
the  most  honest  and  leal-hearted  men  of  his  day.  A  good  and 
shrewd  banker  he  was,  too,  and  in  many  ways  a  Scot  of  the  best 
type. 

It  is  understood  that  underwriters  of  the  Tees  Power  Station 
Company's  issue  of  ;^6oo,ooo  6  per  cent,  first  mortgage  deben- 
tures at  g8J  will  have  to  take  up  about  three-quarters  of  the 
amount,  a  not  unsatisfactory  result  in  view  of  the  circumstances 
that  prevailed  while  the  list  was  open. 

Whitehead  Aircraft  (1917),  I-td.,  has  been  formed  with  a 
capital  of  £i,ocKi,ooo,  divided  into  300,000  7  per  cent,  cumulative 
participating  preference  shares  and  650,000  10  per  cent,  cumula- 
tive participating  ordinary  shares  of  £1  each,  and  ^^50,000  in 
deferred  shares  of  is.  each.  There  are  also  debentures  amount- 
ing in  all  to  ;^45o,ooo.  The  capital  now  offered  consists  of 
450,000  ordinary  and  100,000  deferred  shares,  the  former  being 
offered  at  21s.  6d.  and  the  latter  at  5s.  per  .share.  The  company 
takes  over  the  business  established  in  191 5,  and  it  is  stated  that 
the  output  has  grown  steadily  until  the  turnover  per  month  is 
now  more  than  that  of  the  whole  of  the  first  year,  while  the 
auditors'  certificate  states  that  the  gross  profit  for  the  15  months 
ended  June  30  last  was  at  the  rate  of  ^^24,000  per  annum.  The 
purchase  price  is  ;f  5 10,000,  to  be  satisfied  by  the  allotment  of 
preference  and  deferred  shares  and  debentures,  and  there  are 
various  payments  to  be  made  to  the  founder,  Mr.  J.  A.  White- 
head, who  is  to  be  the  life  governing  and  managing  director  of 
the  company.  It  seems  to  us  that  the  capital  is  fairly  heavy, 
and  although  for  the  time  being  a  huge  output  at  profitable 
rates  may  be  anticipated,  the  shares  must  be  regarded  as  a 
rather  speculative  industrial. 

Silver. 
Silver,  which  was  very  firm  at  the  end  of  the  week  on  the 
reported  action  of  the  United  States  Government  with  regard 
to  its  silver  policy,  fell  yesterday  as  much  as  3sd.  per  oz.  to 
45f^d.  Supplies  were  larger,  and  the  China  exchange  not  so 
firm. 


PUBLIC   INCO.ME   AND    EXPENDITURE. 

(For  7  days  ended  March  23.) 


Remmue. 


EXPENDITURR. 


Customs          2,678,000 

Etci5e 1,176,000 

Est.ite,  &c.,  Duties  ..        .,  802,000 

Stamps 45.000 

Land  Tax  and  House  Duty  105,000 

Property  and  Income  Tax  8,179,000 

Excess  Profits  Tax  . .         ..  6,188,000 

Land  V'alties   ..         ..        ,«  25,000 

Post  Office 900,000 

Crown  Lands — 

Sundry  Loans 4,055,268 

Miscellaneous 3,117.651 

Bullion  advances  repaid    . .  — 
ForTreasuryBillsfor Supply  32,253,000 

5%  Exchequer  Bonds,  1922 . .  — 

6%  Exchequer  Bonds,  1920..  — 
National  War  Bonds         ..*90,483  oo-) 

War  Savings  Certificates,,  3,20o,oco 
4%  War  Loan,  1929-1942  1 

5%  War  Loan,  1929-1947  I  ' "  ~ 
Other  Debts  created  under 
War  Loan  Act,  1915,  and 
Finance  Act,  1916..        ..  11,799,049 

Telegraph  Money  Act,  1913  — 
Under  Post  Office  RIy.  Act, 

1913 — 

Under  Military  Works  Act, 

1897.1903       — 

Under  Public  Buildings    ..  — 

Under  Housing  Act..        ..  — 
Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds           — 

China  Indemnity       ..         ..  — 
East    Africa    Loan    repay- 
ments   — 

Suez  Canal  Drawn  Shares..  — 

Ways  and  Means  Advances  3,414,353 
Decrease      in      Exchequer 

balances       2,066, '98 


^169,129321 


National  Debt  Ser\'ice       . .  484,633 

Interest,    &c.,  on  War  Debt  5,213.955 

Development  &  Road  Impvt  — 

Payments  to  Local  Taxation  1,398,164 
Other    Consolidated    Fund 

Chirges       53.750 

Supply  Services       ..         ..55,836,506 

Bullion  Advances    . .        . .  — 
For   Advance   for    Interest 
on  Exchequer  Bonds  un- 
der  Capital  Expenditure 

(Money)  Act,  1904  . .         . .  — 
For  Treasury  Bills  ..         ..5t,770,coo 
Other  Debt  under  War  Loap 

Acts,  1914-16          ..        ..  8,218,209 
For    War     Loan  and     I'-x- 
chequer     Bonds      under 
Section  61  of  Finance  Act, 

1916,  and  Seciiun  34.  1917  1,148,969 
Under   Telegraph    (Money) 

Act,  1913 — 

Under    Post    Office     (Lon- 
don) Railway  Act,  1913..  20,oo> 
Under  Militar.' Works  Acts  — 
Under  Housing  Act,  1914. .  — 
Public   Buildings  Expendi- 
ture Act,  1903        ..        ..  — 
Old  Sinking  Fund,  1907-8..  — 
Sinking  Fund,  1914..         ..  — 
China  Indemnity      ..         .f  — 
East  .^fr'can  Loan ..           ..  — 
Cunard  Agreement  Act     . .  — 
Expenditure  Certificates    ..  48,7"o 
Depreciation  Fund  . .         . .  1,649.020- 
Suez  Canal  Drawn  Glares. .  — 
TempotaryAdvanc.=s  Repaid  40,co  /oo 
Increase       in       Exchequer 
balances       3,772,068 


£169,129,311 


'Excluding  sales  through  banks  which  have  not  yet  been  brought  to  accoun*. 

NEW   YORK  ASSOCIATED    BANKS   (dollar  at  4s.). 


Loans       

Reserve  held  in  own  Vaults  . . 
Reserve  held  in  Fed.  Res.  Bk. 
Cash  in  own  Vaults     .. 
Reserve  held  in  Other  Depos. 
Net  t  Demand  Deposits 
Nett  Time  Deposits     .. 

Circulation         

Excess  Lawful  Reserrs        ..I 


\Iar.23, 191S  Mar.i£,i9i8.  Mar. 9,1918 


858,344-,ooo 

3,384,000 

102,438,000 

20,294,000 

i;486,ooo 

741,910,000 

38,824,000 

7,048,000 

8,55o,oco 


863,768,000 

3,226,000 

102,602,00c 

20,330,000 

1,536,000 

734,478,0»0 

40,058,000 

6,968,000 

9,548,000 


{ 

877.'3«.«» 

3,274.000 

99,284,'  00 

ao,oo8,ooo 

i,574.«» 

723,812,000 

40,2c6,ooo 

6,960,00:) 

7,704,000 


Mar. 24, 191^ 


£ 

713,134,000 
101,532,000 
43316,00a 

11,428,000 

729,416,000 

35  944i«» 

5,740,000 
30  368,000 


Lawful  Reserve  consists  of   18%  of    the  Demaad  Deposits  and  5%  of    the 
Time  Deposits 


March  30,   1918. 


^he  Jnveetovs'  IReview. 


323 


NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES  (dollar  at  4s.) 


FOREIGN   RATES   OP   EXCHANOB  ON   LONDON. 


Loans  .. 

Specie 
Deposits 
Legal  Tenders 


Mar.  23,  1918, 


£ 
148,604,000 

2,934., 000 

139,912,000 

13,177/^00 


Mar.  16,  1918.     Mar.  9,  1918. 


148,500,000 
24,914.000 

139.374,000 
12,5-^2.0^0 


£ 

148,324,000 

2,906,000 

139.996,000 

13,102,030 


Mar.  24, 1917. 


'54.528,000 

13,53^,000 

163,5^6.000 

2.158.000 


BANK   OF  .FRANCE   (25  francs  to  the  £). 


Gold  tn  hand 
Sliver  In  hand 
Bills  discounted 
Advances 

NoteoiroulatioD 
Public  deposits 
Private  deposit'- 
Poreien  RifU.. 


Mar.  21,  1918. 

Mar.  14,  1918. 

Mar.  7,  igrS. 

Mar.  22,  1917. 

£ 

£ 

I33,4o0,2to 

133,316,160 

133,295,000 

129,513.560 

16,230,720 

10,248,200 

10,243,520 

10  6Q7,r8o 

4i,59t,ooo 

42,563,560 

44,926,0.10 

16,626.920 

45,595,560 

47,020,800 

47.432,520 

48.578,960 

99-'.998,76o 

989,764,800 

986,001,080 

738,031,240 

2,207,^6j 

1,552,040 

1,163,360 

2,933,840 

109,624,640 

103,927, 4*^0 

105,228,320 

9g,4b6,6oo 

362.5'io 

434,200 

389,200 

00,2CO 

Proportion  between  bullion  and  circulation  23.68  per  cent.,  against  22.74  pe^ 
cent,  last  week.  Advances  to  the  State  5^548,000,000,  increase  i"6,oco,ooo.  The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium.  £'19,503,486, 
decrease  ^  33.520,  lod  at  the  branches  £24,855,480,  decrease.  :f42,i20, 

IMHtKlAL  BANK  OF  GERMANY  (20  marks  to  the  jE). 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
A  ivances 
Note  oircutattor 
Deposits 


Mar.  15,  1918.  Mar.    7,  1918.  Feb,  28,  1918  Mar.  15,  igi; 


126,257,450 
66,109,050 

667,471,500 

309,800 

567,764.400 

337.255.4'iQ 


126,223,550 
65.787,500 
653,272.250 
318,800 
565,205,200 
329,<52,o50 


£ 

126,181,150 

65.653. 1.SO 

652,424,650 

431,600 

565,541,400 

324. 5'^!. 550 


127,239,200 

16,736,200 

467,145,600 

570.90  ; 
40^,217,7^0 
221,830.650 


Clearing   House  return   during   February  £420,879,905,    against  £478,428,170 
in  January. 

BANK  OF  NORWAY  (18  kroner  to  the  £). 


Gold 

Balance  abroad   and 

Foreign  Bills 
Gover'nt  Securities. . 
Discounts  &  Loans. 
Notes  in  C^iroiilatiou 
Deposits  at  notice 


Mar.  15,  1918. 


£ 

6,521,000 

3,247,000 

713, ooo 
19,672,000 
18.270,000 

8,867.000 


Mar.  7,   1918. 


£ 
6,524,000 

3,252,000 

713,000 

19  245,001 

17,852,000 

8,gi6,ooc 


Feb.  28,  igi8 


£ 

6,525,000 

3,458,000 

713,000 

19.375.000 

17,678,000 

9,124.000 


Mar.  15,  1917. 


£ 

7,075.000 

4,227tCO0 

706,000 
9,256,000 
14  487,000 

4,577.000 


BANK  OF   ITALY   (25  lire  to  the  £). 


Total  cash 
Inland  Bills 
Foreign  Bills     , . 
Advances 

Government  securities 
Circulation 
Deposits  at  notice 
Current  accounts 


£ 
42,856,280 
28,603,240 
884  520 
20,60  ,480 
8,938,960 
262,244,120 
36,250,040 
22.271,560 


42,627,400 
28,537,160  ' 

884,8So 
16,410,120  I 
8,900,680  \ 
262,700,040  ' 
34,462,960 
24,434.840 


£ 

45.379. 
30,285, 
885, 
17,455, 
8,924, 
261, ..67 
35.458. 
20,663 


Jan. 20,  igiSjjan.  10,1918  Dec.  31,1917  Jan.  20, 1917 


£ 

,778,560 
,723,640 
83 -',640 
,653,480 

,7&2,56o 
,892,800 
.302,280 
.571.520 


080 

42 

400 

21 

000 

200 

II 

840 

8 

Hoo 

154 

280 

19 

BANK    OF    SWEDEN  (18  kroner  to  the  £). 


Gold 

Balance    abroad  a  id 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  . . 
Oiscounisand  Loans 
Notes  In  oiroulption 
Deposits  at  notice  . . 


Mar.  9, 1918.     Mar.  2,  1918. 


£ 
13,060,000 

7,340,000 

3,130,000 
12,715,000 
31,560.000 

5,183,000 


£ 
i3,o'9,ooo 

7,316,000 

3,137,000 
12,720,000 
31,721,000 

5,519,000 


Feb.  23, 1918. 


£ 
13,069  000 

7,364,000 

3,143.000 
11,421,000 
29,596,000 

5,676,000 


Mar.  10,  1917, 


£ 

10,694,000 
8,282,000 


044,000 
,631,000 
,062,000 
,259,000 


LONDON  COURSE  Of  EXCHANGE. 

Place. 

Usance. 

Mar.  21,  1918. 

Mar.  26,  1918. 

Sellers. 

Buyers, 

Sellers. 

Buyers. 

Amsterdam  , ,     . . 
Paris      

Switierland. .     .. 

Petrograd     '.'.     '.. 

Genoa,  &c 

Spain     

Lisbon  and  Oporto 
Copenhagen..     .. 
Christiania  . . 
Stocliholm    ..     .. 

Cable  transfers 

Cable  transfers 

Three  months*  bills.,     .. 

Cable  transfers 

Threi- months' bills..     ,. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Three  months' bills  ..     .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

10.23 
27,19 
27.59 
20.58 
20.93 
nom. 
41.19 
18.58 
60 
27^ 
15.12 
14.90 
13.95 

10.26 
27.22 
27.63 
20.63 
20.98 
nom. 
41.24 
18.64 
6i 

28§ 

15.22 
15.00 
14  06 

10.24 
27.24 
27.64 
20.58 
20,93 
nom. 
41.58 
18.56 
60 

15.28 
1505 
14.25 

10.23 
27.26 
27.65 
20.63 
20.98 
nom. 
41.68 
18.66 
61 
28i 
15.38 
15.15 
'4-35 

Thirty  and  sixty  day  remttted 
Three  laouihs  ,, 

Four  months  ,, 

Six  months  , 

Three  months  6ne  ialand  bills 
Four  month? 
Six  moDths 


OPEN    MARKET   DISCOUNT.  Last  week 

Per  cent 


BANK  AND  DEPOSIT  RATES. 


Back  of  Bn^iau'i  luciimum  dlaoount  rate 
,,  ,,         shuit  loan  rates  .. 

Bankers' rate  on  deposits 
BtU  brokers'  deposit  rate  (call) 

„  7  and  14  days'  iiotloe 

Current  rates  for  7  day  loans 

„  for  call  loans  ,,        ,, 


Last  week  This  week 
Per  cent.  Per  cent. 
..        5        ..        5 


3 

Si 

3j-i 
3l-4 


Method  of 
Quoting. 

^4 

Last 
Week. 

Thi« 
Wtck. 

Paris,  cheqims 
Amsterdam,  cheques 

Italy,  sight       

Madrid,  sight 

Lisbon,  sight 

Switzerland,  sight    ,, 
Christiania,  sitjht 
Stockholm,  sight 
Copenhagen,  sight   .. 
Petrograd,  sight 
Alexandria,  sight 
Bombay,  T.T, 

Calcutta,  T.T 

Hong  Kong,  T.T 

Shanghai,  T.T 

Singapore,  T.T 

Yokohama,  T.T 

New  York,  cable 

Buenos  Aires,  T.T 

Valparaiso,  90  days., 

^Tontevideo,  T.T 

Rio  de  Janeiro,  90  days    .. 

Francs  to  /i 
Florins  to  £i 
Lire  to  £1  .. 
Pesetas  to  £1 
Hence  to  milreis  .. 
Francs  to  ^r 
Kroner  to  fi 
Kroner  to  jt'i 
Kroner  to  £1 
Roubles  to  jf"  10     .. 
Piastres  to  £t 
Sterling  to  rupee.. 
Sterling  to  rupee.. 
Sterling  to  dollar.. 
Sterling  to  tael     .. 
Sterling  to  dollar.. 
Sterling  to  yen     .. 
Dollars  to  £1 
Pence  to  dollar    . . 
Pence  to  peso 
Pence  to  dollar     .. 
Pence  to  milreis  . . 

2J.22J 

12.107 

25.22J 
25.224 

53id. 

25.22J 
18.159 
18.159 
18.159 

1/4 
1/4 

2t.isa. 

4.B6§ 
47-58d. 

5ld. 

i6d. 

10.214 
41.274 
18.624 

28<1. 

20.624 
14.95 
13.934 
J5.I7I 

nom, 

l/4p 
l/4S^ 

3/1 

2/lj| 
504d. 

njd. 

27.22 

10.20 
41.70 
I8.52J 

28ad. 
20.50 
1592* 

U.IO 

15.29 

nom. 

1/4I 

H'i 

4/4i 
2/3ii 
2/lM 

t'l'd. 
I5d. 
62d. 
ijftd. 

Comparative  FicnREs  of  Condition  of  Canadian  Banks. 
The  following  compares  the  condition  of  the  Canadian  banks, 
under  the  last   two    monthly  statements,    with    the    return    for 
June  30,  1914  : — 


Assets. 
Gold  and  subsidiary  coin — 

In  Canada    

Elsewhere 

Total 

Dominion  notes 

Deposit  for  secrity.  of  note  oirc.    . . 
Deposit  in  central  gold  reserves. . . . 

Due  from  banks    

Loans  and  discounts   

Bonds,  securities,  &c 

Call  and  short  loans  in  Canada  .... 
Call  and  short  loans  elsewhere  than 

in  Canada 

Other  assets    

Total 

Liabilities. 

Capital  authorised   

Capital  subscribed  

Capit  il  paid  up 

Reserve  fund 

Circulation , . . , . 

Government  deposits 

Demand  deposits 

Time  deposits  

Due  to  banks 

Bills  piyable  

Other  liabilities 

Total,  not  including  capital 
or  reserve  fund 


an.  31,  ioi».  [Dec.  31, 1917. 


51,836,383 
27,607.289 


82,4(3,672 

184,949,958 

5.772,350 

75.570.000 

155.534.103 

1,018,399,622 

419,129,889 

76,239,201 

132,687,066 
87,141.172 


55,348,784 
26,684,073 


82,032,857 
167,509,121 
5,769.631 
97,270,000 
191,400,677 
1,016,241,854 
468,406,273 
71,779,020 

134,483,482 
88,270,706 


2,237.867,033 

189,866,666 
112,091,466 
111,709.465 
114,161,223 


171,674,464 
124,458,726 
729,358,343 
900,314,256 

35,137,912 
2,788,309 

29.446,998 


2,323,163,621 
« 
189,866,666 
ii2,oji,466 
111,673,776 
1I4,10.\693 


192,923,824 

82,780,074 

744,22C,975 

995,978,013 

33,508,646 

3.479,765 

28,842,025 


1,993,179,008     2,081,733,322 


June  30,  1914. 


28,948,84k 
17,160,111 


46,108,952 

92,114,482 

6,667,568 

3,050,000 

123,608,936 

925,681,966 

102,344,120 

67,401,484 

137,120,167 
71  209,738 


1,575,507,413 
% 
192,866,666 
115,414,666 
114,811,775 
113.368,898 


99,138,029 
44,453,738 
493,067,832 
663,650,230 
32,416.404 
20,096,365 
12,656,085 


1,330,488,683 


The   Week's    Stock    Markets. 

Business  on  the  Stock  Exchange  almost  invariably  falls  off 
in  the  days  preceding  such  a  long  recess  as  from  Thursday 
afternoon  till  Tuesday  morning,  and  on  this  occasion  there 
has  been  the  additional  restraint  caused  by  anxietj  with  regard 
to  the  development  of  the  furious  German  offensive  on  the 
Western  Front.  Much  of  this  anxiety  is  due  to  sheer  ignorance 
and  inability  to  understand  the  actual  military  position,  but 
it  exi.sts,  and  in  these  circumstances  it  is  not  surprising  that 
the  tone  of  markets  almost  everywhere  has  been  depressing. 
Not  much  selling  pressure,  fortunately,  has  been  experienced, 
but  prices  were  marked  down  as  a  precautionary  measure. 
Foreign  stocks,  as  a  rule,  were  wonderfully  steady,  but  Argen-  ' 
tine  Rails  were  again  adversely  affected  by  renewed  labour 
troubles,  of  which  there  will  be  no  end  until  German  subsidies 
are  exhausted.  Breweries  have  been  weak  on  the  fixing  of 
retail  prices,  and  armament  shares  also  have  given  way,  partly 
because  they  had  gone  ahead  too  fast,  and  partly  because  the 
outlook  is  none  too  promising.  But  the  whole  position  may  be 
summed  up  in  the  fact  that  there  is  scarcely  enough  business 
to  test  quotations. 

With  the  approach  of  the  holidays  business  on  the  Stock  Ex- 
change inevitably"fell  to  a  very  low  level,  and  at  the  same  time 
the  anxiety  witli  regard  to  the  developments  of  the  German 
offensive  on  the  Western  front  has  tended  to  make  operators 
extremely  cautious.  The  tone  generally  has  been  heavy,  and 
dealings  in  most  directions  have  scarcely  been  sufficient  to  really 
test  quotations.  Gilt-edged  stocks  were  weak,  and  al  Ithe  lead- 
ing issues  lost  i  to  ^,  while  Bank  stock  dropped  2  points.  In- 
dian issues  also  we're  conspicuously  flat,  and  Colonial  Loans, 
without  moving  to  any  appreciable  extent,  were  decidedly  dull. 
Foreign  stocks,  on  the  other  hand,  were  remarkably  steady,  and 
except  for  a  decline  in  Japanese  Fives,  scarcely  any  movement 
took  place,  but  that  was  probably  more  because  no  business  came 
into  the  market  than  owing  to  any  inherent  strength  in  the 
position. 

Home  Railways  have  steadily  lost  ground,  partly  owing  to 
the  absence  of  any  appreciable  support  from  investors,  and 
partly  because   the  outlook   with   regard   to  the   future  is   still 


324 


Zbc  Jnvestors'  IRevtew. 


March  30,   1918. 


Week  Weekll 


Consoli.  77! 
War  Loan 


3%   i9«9-47. 
4%,  i9'9-4«- 


India  3%  • 
^j     31^ 

Austrafian  5}%,  i«o-2a 

Canada  4%,  1940-00  .... 

.1       4l%. '9«'>-3  .... 

N,S.W.«%,i933 

Arnntina  4%,  igoo  .... 

Ber(il«n3% 

Bratll,  1913 

„,  .,       5%.  ■9U    

Chineae  1896  

,,       1919 

Bcypt  Unified  4% 


Caledonian  defd. 

Ct.  Central  pia 

J.    „..        dW 

Gl.  Eatlern 

Gt.  Norlbern  d(d 

Gt.  Western    

Lanoi.  and  Yorks 

London  Brighton  defd. 
London  Chatham  ord.. . 


93» 
I  oof 

^1 

99 

60 


6S 
624 


89 

•h 

34 

.14 

64 


160 
84 
9i 

2li 


Laai  I  Tlli 
Weak  Week 


34 

86 
looj 
93ft 

lOOX 

53i 

62 


9*4 

nji 

68 
62i 
70 
8> 
89 

9. 


Canadian  Pacific  

E.  Indian  Guar.  4}%  debt 
Grand  Trunk  ord.    

Do.  ist  pf 

Do.  3rd  pf 

Antofagasia  dfd 133 

Brazil  Common s 

B.  A.  &  Pacific 3( 

B.  A.  Gt.  Southern 681 

B.  A.  Western    661 

Anglo-South  American   ,.  Si 

Bank  of  Australasia i  lox 

BankofN.S.  Wales 36 

Barclay  &  Co.  "  A  " 7} 

Do.       "B" lit 

Capital  &  Counties  25} 

Cmrtered  of  India    72 

Hongkong  &  Shanghai    . .  62 

Lloyds 24i 

London  &  Brazilian 25$ 

Armstrong,  Wbitworth ..  43/3 

Birmingham  Small  Armt  57  6 

Cammell-Laird 6] 

Cargo  Fleet 23/3 

Donnan,  Long  38/6 

Asaoclated  Cement 3H 

Borax  dfd 39/ 

Bovrll    20/9 

Bracil  Traction 43I 

British  Amer.  Tobacco  pf.  18/6 

British  Aluminium  32/6 

British  Oil  &  Cake    31/g 

Brunner,  Mond iflj 

Castner-Kellner 3  A 

Coats 6 

Coartaulds 7]j 

Cunard 4^ 

Dennis  Bros 36/ 

Eastern  Telegraph   1531 

llastmans ...     lo/i 

English  Sewing  Cotton  ..  54/ 

Anglo-Egyptian  "  B"  , . . .  37/3 

Baku  (los.)  1/6 

Burmah 6^ 

Lobitos i^ 

Maikop  Pipeline  2/ 

Mexican  Eagle  pf 62/6 

Allagar2;- 3/1) 

Anglo-Java  Rub.  2;-     ....    6/74' 

Anglo-Malay  2/ 14/ 

AyerKuning^i 45/ 

Batang  Malaka  2/- 4/7^ 

Bekoh  2/- 4/6 

Brit.  N.  Borneo  Trust  £1    :6/9 

Bukit  Cloh  2/- !     4/9 

Bukit  Kajang£i 1  71/6 

"■"'""  '  4/6 

3/3 
41/3 
9/3, 
3/44 
6/ 

2/94 
25/9 
27/'4 
35/ 
57/ 
28/ 
29/ 
33/ 
3/104 
4/ 
«/74 

37,6 
26/6 
8/9 
3 
38/ 

m 
3/6 
41/6 

4/ 
7/3 
3 
69/3 

'1/3 
6i 

«5/l4 
2ili 

35/ 

"7/9 


1594 
*♦, 

204 

136 

5 
40 
69 
66 

8i 
il6x 
36 
7 

"i 
25 
72 
81 

24i 

25 

43/ 
59/6 
6i 
25/6 
37/6 

3l 
38/6 
20/9 
42 
18/6 
32/6 
31/1 


Bukit  Mertajam  2/-   _ 

Bukit  Sembawang  2/-  . . . . 

Carey  United  ]{^l   

Ceylon  Para  2/- 

Chersonese 

Chevi,  t2/-   

Dalkciih2;- 

Eastern  Invest.  Trust  £1. 

Grand  Central  £1 , 

Gula  Kalumpong^i 

Highlands  £1 

Java  Investment  £i 


Java  Para  fi 

lohore  Rubber  Lands  £t. 

Kamunin;  2/- 

Kinta  Kellas2/-  

Kuala  Kubu  2/-  

Labu  a/- 

Langen  Java  £1 

Linggi  2/- 

London  Asiatic  2/- 

Malacca  £1 

Malayalain  £1 

Merliinau  3/-    

Padang  Jawa  2/- 

Pataling  2/- ... 

Abbontiakoon  (10/-) 

Bcchuanaland  Exp 

Brakpan  

Broken  Hill  Prop.  (8/-)  . 

Cam  &  Motor 

Central  Mining  (j^ia)  ... 

Chartered    

City  Deep      

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  lio/-) 

Oe  Beers  dfd.  (£2  los.)  . 

East  Rand  

G«iuld 

G«T.  Areas  Mod     


7ix 

4i 
36/6 

•534 

10/ 

54/ 

33/ 

1/6 
68 

2/ 1 
62/3 1 

3/li 
6/44 
■3'9 
45/ 
4/74 
4/44 
16/9 
4/loi 
72/6 
4/6 
3/44 
41/3 
9/3 
3/3 
6/ 

2/9ix 
25/9 
:6/6 
35/ 
56/6 
26/6 
29/6 
3>/9 

3/84 

4/ 

2/74 

9/44 
37/6 
25/9 

9/ 

5 
38/ 

5/44 

3/6 
41/6 

4/ 

7/ 

4f8 
68/ 
10/6 

6 

'4/74 


N.S.W.44%5y'.'>dt.... 

..      4l%. '9««-7 

3%.  i9»'-3 

3J%. '920-«    ... 
New  Zealand  4%,  1929    . 

Qneensland  4% 

I.  4j%.  '920-3    . 

Union  of  S.  Africa  4i% 

'920-5    

I  Victoria  4i%,  1920-3 

Westn.Aus.  4%    

French  War  Loan,  5%  . 
Japan  44%  ('"),  1905   ... 

3%. '907 

Meiican  3%,  1899   

Russia4  % 

..      44%. '9"9 

,.      5%,  '906 

London  and  N.-W.     ... 
London  and  S.-W.  dfd.  . 
Do     red.  pf.  1914 

Metropolitan  

Do,        5%      pf-. 

Met.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastern 

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern  . . , 


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San  Paulo  (Brazilian).... 

United  of  Havana 

London  City  &  Midland. . 
London  County  &  West/. . . 

London  Joint  Stock 

Nat.  Prov.  otEng.(^io4  pd) 
Do.  {£12  pd) 

Parr's    

Standard  of  S. A 

Union  Discount 

Union  &  Smiths 

Kynochs  

Mond  Nickel  ord 

South  Durham  Steel  ... 

Thornycroft    

Vickers 

Fine  Cotton  Spinners  ... 

Forestal  Land 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay    

Imperial  Tobacco  '  C  *  pf 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  4  F 

P.&O.dfd 

Royal  Mail 

Underground  Inc.  Bds. . . 


95. 


North  Caucasian  . 
Roumanian  Cons.. 

Shell 

Spies  (to/.) 

Ural  Caspian 


)H 


Perak  2/-   

Port  Dickson  2/-  

Rub.  Estates  Johore  £1,. 
Rub.  Estates  Krian  2/-. . . . 

Rubber  Trust  £1 

Sampang  (Java)  2/- 

Sapumalkande  ]£^l     

Seaport  £1 

Selangor 

Bengal  2/- 

Seremban  £1  

Shelford  £1 

Sialang  jC'    

Singapore  Para  2/-    

Singapore  United  2/-    .... 

Soember  Ajoe  2/- 

Stagbrook  £t 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  £1  

Sungei  KaF»r  2/-   

Sungei  Kruit  £1 

Taiping  2/- 

Tali  Ayer  £1  

Tandjong  £1   

Tandjong  Malim  £1 

Tebrau  £1  

Telogoredjo  £1 

Tempeh  2/. 

United  Serdang  2/- 

United  Sumatra  2/* 

ValdOr2/- 

Vallambrosa  2/- 

Way  Halim  1/8  pd 


Gt.  Boulder  (2/.)    .... 

Kyshtim    

Mashonaland  Agency 

Meyer  &  Charlton    .. 

Modder  "B" 

Do.    Deep 

Mysnre 

Rand  Mines  (3/-)   .... 

Rio  Tinto(£3)  

Russo- Asi  (tie 

^Spring  Mines 

[Tanganyika 

■  Tanalyk    

VanRyoDwp  


13/ 


regarded  as  extremely  uncertain.  American  Railroads  were 
weak,  and  Chesapeake*  fell  2  points,  while  International  Mer- 
cantile Marine  also  gave  way  rather  sharply,  but  dealings  were 
on  a  very  small  scale.  Canadian  I'acifics  dropped  a  fraction, 
and  Grand  Trunks  were  dull  in  spite  of  a  very  favourable  traffic 
return.  Mexicans  were  scarely  mentionecl,  and  Argentines 
sagged  persistently  on  further  talk  of  labour  difficulties.  The 
losses  run  to  1  or  2  points  in  some  cases  and  Guayaquil  and 
Quito  fell  aj,  while  United  of  Havana  also  lost  ground.  On 
the  other  hand,  Antofagasta  was  exceptionally  strong,  and 
marked  up  2  points. 

Hank  shares  were  almost  completely  neglected,  and  in  the 
Brewery  section  the  tone  was  very  weak,  AIlsopps,  City  of 
London,  and  "Watneys  all  giving  way  rather  sharply.  Egyptian 
securities  were  dull,  and  Nitrates  also  tended  to  recede.  Iron 
and  Steel  shares  were  flat,  Otis  losing  2  points  and  Work- 
ington Iron  slipping  back  in  spite  of  the  amalgamation  scheme. 
Land  shares  were  inactive,  but  wherever  prices  moved  the 
changes  were  adverse,  and  Hudson's  Bays,  N'igers,  Korestals, 
and  Pahangs  all  show  declines.  Nothing  much  happened  in  the 
Shipping  division,  but  among  Telegraphs  Marconis  were  con- 
spicuously heavy  in  .spite  of  last  week's  favourable  decision  in 
the  suit  against  the  Government.  Among  Miscellaneous  Indus. 
trials  Lyons  and  Savoy  eased  off,  and  there  was  rather  a  severe 
slump  in  Courtaulds  owing  to  the  refusal  of  the  Treasury  to 
sanction  the  bonus  share  scheme.  The  price  has  dropped  back 
to  the  neighbourhood  of  7,  which  is  rather  a  suggestive  comment 
on  the  estimates  which  were  recently  put  forward  that  the 
shares  were  worth  £1^  apiece.  Maypole  Dairy  also  gave  way 
in  spite  of  the  handsome  dividend,  and  Brazilian  Tractions  were 
weak. 

Oil  shares  have  been  conspicuously  depressed  under  the  lead 
of  Burmah  and  Anglo-Egyptians,  owing  probably  to  the  un- 
certainty of  the  military  position  in  the  East  and  to  the  defec- 
tion of  Russia  and  the  complications  that  may  arise  from  this 
source.  "  Shells  "  and  Trinidad  Leaseholds  also  were  very  flat, 
and  the  market  generally  found  little  support  in  any  direction. 
Rubber  shares  have  again  fallen  into  a  condition  of  comparative 
stagnation  owing  to  another  reaction  in  the  price  of  the  com- 
modity, which-  hM  fallen  back  to  about  2s.  5d.  Biiyers  are 
scarce,  and  aUhough  there  has  been  no  particular  selling  pres- 
sure dealers  are  not  anxious  to  put  stocks  on  their  books, 
and  there  is  not  enough  demand  to  clear  the  daily  ofierings  that 
come  into  the  market. 

Details  are  now  available  of  the  contemplated  amalgamation 
of  the  Workington  Iron  and  Steel  Co.,  Ltd.,  with  Steel,  Peech 
and  Tozer,  Ltd.,  Samuel  Fox  and  Co.,  Ltd.,  and  Rother  Vale 
C:ollieries,  Ltd.  Steel,  Peech  and  Samuel  Fox  between  them 
own  the  whole  of  the  share  capital  of  the  Frodingham  Iron 
and  Steel  Co.,  Ltd.,  which  in  turn  owns  half  the  share  capital 
of  the  Appleby  Iron  Co.,  Ltd.,  and  arrangements  have  been 
made  to  acquire  the  remaining  half  interest  in  the  latter  after 
the  amalgamation.  Treasury  sanction  has  been  obtained  for 
the  scheme,  and  a  new  company  is  to  be  formed,  called  the 
United  Steel  Companies,  Ltd.,  into  which  the  existing  securities 
will  be  exchanged  on   the  following  te/ms  : — 

£  New  Shares. 

.        , .-,  (      I  so, 000  6  p.c.  pref.  shares. 

Steel,  Peech  and  Tozer j   3,250.000  ord.  shares. 

,  _           ,  „  (        80,000  pref.  shares. 

Samuel  Fox  and  Co |    1,250,000  ord   shares. 

„    ,  (    1,100,000  pref.  shares. 

Workington  Iron,  Ord |      550,000  ord.  shares. 

Rother  Vale  Collieries    1,300.000  ord.  shares. 

7,6So,ooo 
In  addition,  ^^i, 000,000  6  per  cent.  A  debentures  will  be 
issued  for  cash,  ;^i, 000,000  6  per  cent.  B  debentures  in  exchange 
for  Workington  preference  shares,  and  ^£500,000  6  per  cent. 
C  debentures  in  part  consideration  for  the  Rother  Vale  Co.'s 
shareholding.  Workington  Iron  ordinary  shares  will  be  ex- 
changed for  one  new  preference  and  50  per  cent,  of  new 
ordinary,  but  the  exact  allocation  of  the  rest  of  the  capital 
among   the  other  parties  to  the  deal  is  not  stated. 


^6 


% 


LONDON    PRODUCE   MARKETS, 

Sugar  remained  unchanged.  A  sustained  demand  was  expe- 
rienced for  American  syrups. 

Coffee.— Holders  again  offered  reservedly,  and  general  firmness 
governed  the  market,  while  business  was  on  a  fair  scale.  Futures 
quiet  and  still  rather  featureless.  j      r     u    u 

Cocoa.— In  auction  this  week  10,954  ^^R^  ^^^^  offered,  of  which 
10,010  consisted  of  Colonial  imports.  Of  the  later.  5.321  bags 
comprised  Grenada  and  2,618  bags  British  VVest  African.  A  good 
demand  was  evidenced  for  the  better  qualities,  which  sold  up  to 
recent  private  rates.  Grenada,  fair  to  fine,  sold,  85s.  to  91s. ;  St. 
Lucia,  fine,  90s.  to  91s. 

Spice.— Moderate  trading  was  witnessed  with  legard  to  prepper, 
and  a  steady  tone  ensued.  Fair  black  Singapore,  spot,  qucted 
IS.  4jd.  ;  white  ditto,  sold,  2s.  ill. :  Murtok,  2s.  ijd.  to  2s.  ifd.  : 
Tellicherry,  is.  4fd.  Fair  Zanzibar  cloves,  spot,  changed  hands 
at  2S.  3d.  Ginger  firm,  with  sales  in  fair  washed  rough  Cochin  at 
95s.  Pimento,  sold,  5jd.  Tapioca  commands  fair  support.  Fair 
flake,  spot,  sold,  8d.  Fair  Penang  seed  pearl  quoted  77s.,  and 
medium  74s, 


March  30,  1918. 


Zbc  Jnveetors'  IReview. 


325 


Rich  remained  in  good  request,  also  beans  and  peas. 

Shellac. — Market  quiet,  with  only  retail  sales,  including  fair 
T.N.,  spot,  at  4501.  to  440s. 

Peppermint  Oil.— Japanese,  spot,  sold,  4s.  ;  and  menthol, 
14s.  3d. 

Robber  slightly  unsettled,  with  fair  dealings.  Plantation,  spot, 
crfepe,  sold,  as.  sjd.,  2S.  5d.,  2S.  sjd,  and  2s.  5d.  ;  April-June, 
2s.  sJd.,  2s.  5jd.,  2S.  6d.,  and  2s.  5jd.  Ribbed  smoked  sheet, 
spot,  done,  2s  4jd.,  2s.  sd.,  and  2s  4jd.  Fine  hard  Para,  spot, 
realised,  2S.  gjd.  ;  May-June,  2s.  lod.  Soft  fine,  spot,  quoted, 
2S.  5d. ;  ball,  is.  8d. 

Corn  (Mark  Lane). — Quiet,  but  steady,  conditions  were  again 
in  evidence  since  last  Monday,  flour  being  fairly  offered,  and  move- 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 
WEEK  ENDING    MARCH  17,   1918. 


Last 
Week. 


Tbls 
Week. 


■d^W— per   cwt 
duty    14/,    98% 
polarisation 

Tale's  Cubes 

Crushed . ,     . . 

Granulated  .. 

Lyie's  granulated 

Foreign  granu- 
lated, first  marks 
f.o.b.,  spot 

GermanCubef.o.b. 

Fteoob  Cube 

prompt 

Crystallised,  West 
India 

Beel,    86%    f.o.b 


(odli 


ler  lb.,  duty 


r. 


I 


(odlaD  Pekoe 
Broken  ,, 
Orange  ,, 
Broken  ,, 
Pekoe  Soucfaong 
Ceylon  Pekoe  . . 
Broken  ,, 
Orange  ,, 
Broken  ,, 
Pekoe  Souohong 

OOCOft  —  per  owt. 

dutT  6d.  per  lb. 
Trinidad— per  owl 
Grenada  ..  . . 
West  Africa..  .. 
Ceylon  Ptantattoi^ 
GoayaquilAriba.. 
Ooffea — per  owt. 
duty  4S/- per  cwt. 
Bast  Inclia    ..     .. 

lamaioa 

Costa  Rica  ..  .. 
ProTlilona— 

Butter,  per  cwl 
Auitralian  finest 
Argentine 
Irtan  Creameries 
Dutch  dit>o..     .. 
Russian  finest     .. 
Paris  baskets 
Danish  finest 
Brittany     roils  — 

doz.  lb.      ..     .. 

Baoon— percwt. 

Irish      

Continental..     .. 
Canadian      ..     . 
American      . .     . . 
Hama— per  owt, 

Irish       

Canadian  ..  .. 
American     ,.     .. 

Oheese— per  cwt. 

Dutch 

Canadian  ..  . . 
English  Cheddar 
Wilts  loaf  ..  .. 
New  Zealand 

Alce~per  cwt. 

Japan 

Rangoon  2  stars  . . 

Bggs— per  lao. 

English 

Irish      

Danish  ..     ..     ^ 

Spelter— 

G.O.B.  as  to  posi 
tion 


nom. 
nom, 
nom, 
nom. 
nom. 
nom, 
nom. 
nom. 
nom. 
nom. 

d.  s.  d. 

87  o-  98  ( 
52  o-  94  o 
62  6-  70  0 ' 
77  o-  95  0 
103/- 1 10/ 


Flour— per  sack. 

Country  Straight 

Runs  ex  Mill .. 


£   s.    d 


2  13  9 
2  13  9 
269 
269 


nom. 
nom. 


269 
nom. 


269 
nom. 

s.  d.  5  d 

nom. 

nom. 
nom. 
nom. 
nom. 

nom. 
iiom. 
nom. 
n(  m. 
nom. 

s.  d.  3   d. 

87  o  -96  o 
?o  o  -95  0 
£0  o  -70  o 
77  o  -95  o 
103/-110/ 


iio-o  135-0 

9-0  151-0 

1 1 0-0  139-0 


252/ 

232/ 
nom. 
nom. 
nom. 
nom. 
nom. 

nom. 


172I 

172/ 
171/-172/ 
171/-180/ 

203/ 
162/- 165/ 
125/-165/ 


29/6-160/ 
nom. 
142/ 
nom. 
nom. 

'.     d. 
ncm. 
26    3 


i4  6  36  6 

34  6-35  0 

nom. 


^54  £50 


44/3 


£    6.   d 


2  13 
2  13 
2  6 
2    6 


nom. 
nom. 


no  0  135  o 
77  0  J51  3 
100  1370 


252/ 
252/ 

nom. 

nom. 

nom. 

nom, 

nom. 

nom. 


172/ 

172/ 

171/- 1 72/ 

i7i/-ito/ 

2C3/ 

162/-165/ 
125/-165/ 

129/6-160/- 
nom. 
142/ 
nom. 
noir.. 

s.    .1. 
ncm. 
26    3 


35  0-36  6 

34  6-35  0 

nom. 


^54  :C50 


Wool— per  lb. 

Australia 
Scoured  Merir 
Scoured  Cr'ssbr 
Greasy  Merino    .. 
Greasy  Crossbreil 
New     Zealand! 
(scoured)  Merino 
Greasy  Crossbred 
Cape  snow  white 

Indlarubberp.lb 

Plantation,      Spot 
Crepe..    .. 


Coal— per  ton 

Durham,  best  .. 

Seconds  ..  .. 
East  Hartlepool.. 

Seconds  ..  .. 
Steams,  best 

Seconds       ..  *■ 

Lead— per  ton. 
English  Pig..     ■  ■ 
Foreign  solt,  net 

Quloktltver— per 

bottle  firsthand 

Tin — per  ton 
English  Ingots 

Do.     bars 
Standard  cash    . 
TlnPlates,perbo> 
Copper — per  ton. 
English,     Tougb 

per  ton      ..     • 
Best  Selected    . 

Sheets 

Standard     ..     . 
Jute— per  ton. 
Native    firsts    for 
shipment 

OtU— 

Linseed,  per  ton. 
Rape,  crude  . .. 
Cott'n  Seed.orudi 
Petroleum  Oil, pei 

8  lbs. 
Water  White      . 
Oil  Seeds, Linseei 
Calcutta— pel  ton 
Spot 
Rape     


44/3 


Iron— per  ton 
Cleveland  Cash  . . 

Tobacco  —  duty 

uuuianufacture< 

7/4  to  8/0   per  lb 
[Vlaryland  &  Oiiio 

per  lb.  bend    .. 
Viiginialeat. 
Kentucky  leaf    . 

Latakta 

Havana 

Manila 

Cigars,   duty   lo/t 

per  lb. 

Tinaber— Wood. 

Pitch  Fine    ..     ., 
Indian  Teak 

Turpentine- 
American  Spot  . 

Copra— per  ton 
Malabar  . .  . 
Ceylon 

F.M.S.  Singapore 
P.M.    Straits 


Last 
Week. 


i   s.  d. 


nom. 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 

nom 

nom. 

nom. 

nom. 

nom. 

nom. 

0   2   sS 


nom. 

nom. 

nom. 

nom. 
32  6 
29    6 

i     8.  d 
nom. 

aom. 


nom 


nom. 

£149 
jTiio-iioJ 


f58 
£65 
£60 


'17) 
l/8i 


29  15     0 

f29-lo£30 


nom 
0  8—2 
o  7 — 0  II 
2  0—5 
16-66 

nom. 
2/  updf. 


300/— 400/ 
B8o/— 700/ 


This 
Week, 


£    p.  d. 


nom. 
nom. 
nom. 
nom. 
3«6 
19  6 

£    s.  d. 

nom. 

£'9i-£t»h 
nom. 


jC320-£323 

£32i-£324 
£316 
nom. 


nom. 
£ii9-fi23 

£149 
£iio-iioi 


£ii 

£66 
£60 

1^74 
1/84 


29  15    o 
£29-10^30 


nom. 
08-2    I 
07-011 
30-5    0 
16-66 

nom. 

2/  upds. 


500/- 

I380/- 


400) 
700/ 


124/3 


46    o  0     46    0 

46    o  o  I  46    o 

45  10  o     45  10 

45  10  o  1  45  10 


ments  in  prices  without  change.  Wheat :  Native  grain  remains  at 
75s.  6d.  per  quarter,  504  lbs.  Of  imported  descriptions.  No.  i 
Northern  Manitoba,  8is.  6d. ;  No.  2  ditto,  80s.  Hard  winters.JNo.  2, 
80s.  6d. ;  Australian,  83s.  6d.  Flour:  Imported  grades  range  at 
49s.  gd.  to  51s.  gd.,  according  to  quality.  English,  44s.  3d.  per 
sack,  ex  mill.  Barley,  English  milling,  62s.  gd.  per  quarter. 
Oats  ;  American,  white  clipped.  No.  2,  6is.  6d. ;  Canadian  feed, 
63$. ;  English,  46s.  3d  Maize  remains  quite  nominal  temporarily. 
Cotton  (from  our  Manchester  correspondent).— The  tone  of  the 
market  has  continued  very  firm,  and  buyers  have  found  it  impos- 
sible to  obtain  concessions  in  price  from  producers.  Compared 
with  recent  previous  weeks,  however,  demand  has  not  been  quite 
«o  active.      In  some  respects  the  war  news  has  had  a  rather 


restraining  influence  upon  operations.  The  outlook  for  the  new 
American  cotton  crop,  although  rather  better  than  a  few  weeks 
ago,  is  not  altogether  satisfactory,  and  rains  are  still  badly  wanted 
in  portions  of  the  Belt.  It  is  said  that  the  acreage  under  Egyptian 
cotton  for  next  year  will  not  be  so  much  restricted  as  at  one  time 
expected.  Certain  negotiations  are  understood  to  be  taking  place 
between  representatives  of  the  Government  and  of  Lancashire  trade 
interests  with  reference  to  the  distribution  of  Egyptian  cotton 
next  season.  The  general  offtake  in  piece  goods  for  abroad 
has  been  of  rather  smaller  dimensions.  More  manufacturers  have 
been  indifferent  as  to  selling.  Offers  for  India  and  China  remain 
poor,  especially  in  sized  goods.  Occasional  transactions  have 
occurred  for  Egypt.  Not  much  activity  has  been  reported  for 
South  America.  Producers  of  finishing  and  bleaching  cloths  who 
can  deliver  quickly  have  had  plenty  of  opportunities  of  selling. 
The  home  trade  continues  to  give  encouraging  support,  although 
delays  on  the  railways  are  rather  harassing  the  distributing 
houses.  American  yarns  have  been  very  stiff  in  price,  and 
although  a  fair  amount  of  business  has  been  about  the  turnover 
has  shown  some  falling  off.  Scattered  sales  have  been  put 
through  in  export  numbers  for  India  and  France.  The  strong 
position  of  Egyptian  spinaers  is  being  well  maintained,  and  the 
under-current  of  demand  continues  healthy. 


American  Business  Notes. 

Director-General  McAdco,  who  has  the  charge  of  controlling 
the  railways  in  the  United  States,  appears  to  be  taking  a  more 
high-handed  attitude  towards  them  than  any  of  our  war 
Governments  have  attempted  to  do  with  ours.  In  the  matter  of 
pay,  for  example,  he  has  issued  an  order  setting  forth  the  Hala- 
tions between  administration  and  employees.  In  this  order 
he  indicates  that  employees  will  be  required  to  work  a  reason- 
able amount  of  overtime,  and  that  the  question  of  hours  will 
be  settled  as  promptly  as  possible  by  the  Railroad  Wage  Com- 
mission; but  pending  the  decision  on  these  matters,  all  requests 
of  employees  involving  a  change  in  wages  and  hours  will  be 
held  in  abeyance  both  by  managers  and  employers.  Wages, 
when  settled,  will  be  made  retroactive  as  from  January  i  last. 
In  the  meantime,  there  shall  be  no  possibility  of  striking  or  of 
combining  to  force  excessive  claims  on  the  part  of  employees. 
And  Mr.  McAdoo  goes  further — he  forbids  salaries  of  officials 
to  be  increased  and  also  the  creation  of  any  new  posts.  There 
seem  to  have  been  rumours  that  a  few  roads  were  planning  to 
create  high-salaried  positions  on  the  assumption  that  the 
Government  would  pay  these  salaries,  and  that  the  railroads' 
compensation  would  not  be  diminished.  If  there  was  any  idea 
of  that  kind  abroad — and  it  would  be  quite  according  to  direc- 
torial human  nature  that  there  should  be — it  has  been  effec- 
tively squelched  ere  it  took  shape  by  this  new  order.  Would 
not  a  little  vigour  of  this  kind  be  valuable  in  managing  our 
great  industries,  railway  and  other?  Would  it  not  be  feasible, 
for  example,  to  tell  working  men — like  those  always  grumbling 
engineers — that  if  they  do  persist  in  striking,  or  in  other  ways 
in  acting  so  as  to  prevent  the  maintenance  of  the  nation's  fight- 
ing equipment,  the  least  they  can  expect  will  be  that  no  food 
would  be  served  out  to  them  until  they  have  changed  their 
minds?  "If  any  man  work  not,  neither  shall  he  eat,"  is  a 
Pauline  dictum  which  seems  to  be  eminently  applicable  to  in- 
dustrial discontent  at  present.  It  might  prove  more  efficacious 
in  stifling  discontent  than  "  bursts  of  eloquent  appeal." 

The  third  "Liberty  Loan"  is  to  be  for  ;f6oo,ooo,ooo  in  4J 
per  cent,  bonds,  it  is  now  announced,  but  Mr.  McAdoo  will 
have  no  objection,  we  take  it,  shou'd  the  yield  be  twice  as 
much.  All  over  subscriptions  will  be  accepted.  Altogether 
powers  have  been  taken  or  are  being  arranged  for  to  create 
^1,633,000,000  over  and  above  the  loans  already  subscribed  by 
the  nation.  America  is  going  to  help  to  settle  this  Prussian 
abomination  in  a  manner  so  thorough  that  even  our  routine  en- 
slaved politicians  and  statesmen  may  not  relish.  Suppose  they 
treat  William  Plohenzollern  like  common  criminals,  how  then? 


A  PRACTICAL  PENSION  POLICY 
FOR    WOMEN    WORKERS. 

"  After    the    heat   and   turmoil   of   the   day, 
The  sheltered   haven  of  the  peaceful  years." 


li 


A   leaflet   entitled 


AFTER 


ff 


giving  full  particulars  of  a  new  and  attractive 
scheme  will  be  sent  post  free  on  application  to  the 

NATIONAL    PROVIDENT   INSTITUTION, 

48  QRACECHURCH  STREET,  LONDON,  E.G.  3. 


326 


tihe  investors'  IRevtew. 


March  30,  1918. 


PUBLIC     INCOME     AND    EXPENDITURE. 

The  following  are   the  receipts  into  and   issues  out     of    the 
Exchequer  between  April  1,  1917,  and  March  23.  1918; — 


BaJaooei   in    Exchequer   on 

April  X— Bank  of  Entfl.md  . . 

Bank  of  Ireland    . . 

Rkvenub. 

CuRtoms  

Excise  

Estate,  &c.,  Duties 

Stamps 

Land  Tax ) 

House  Duty    ) 

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Duties,  &c 

L.and  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    fron.     Sundry 

Loans,  &c 

Miscellaneous 

Revenue   

Total  


Efilmate 

for  the 

Year 

(See  note.) 


Total  Receipts 

into  the 
Exch?querfrom 
April  I,  10^7,  to 

Mar.  23.  1918 


70,750,000 
34,950.ox 

20,000,000 

8,000,000 
2,600,000 


224.000,000 

200,000,000 

400,000 

33,7oo,oco 
6oo,coo 

7,5oo,oco 
27  ino  000 


£ 

i»3.»o9,947 
i.azs.gra 


36,435.859 


638.600,000 


Other  Receipts. 

Repayment  of  Advances  for  Bullion    

Repayment    of    Advances    for     Interest 
Exchequer  Bonds  under  the  Capial  Expen- 
diture (Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Oflict-  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buil  ings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For  Treasury  Bills  (tor  supply)    

For    Exchequer    Bonds     under    the    Capital 
Expenditure  (Money)  Act,  1904  

For    Exchequer    Bonds    under    the    Cunard 
Agreement  (Money)  Act,  1904 


For  4^  per  Cent.  War  Loan.  1925-1945 

For  5  per  Cent.  Exchequer  Bonds,  1919 

For  5  per  Cent.  Exchequer  Bonds,  1920    

For  5  per  Cent.  Exchequer  Bonds,  1921   .... 

For  5  per  Cent.  Exchequer  Bonds,  1922   , 

For  6  per  Cent.  Exchequer  Bonds,  1920    ..., 

For  War  Expenditure  Certificates    

For  War  Savings  Certificates , 

For  other  Debt  created  under  the  War  Loan 

Acts,  1914-1917 

For 4  per  Cent.  War  Loan,  1929-1942,  and  5  per 

Cent.  War  Loan,  1929-1947    

For  National  War  Bonds    

East  Africa  Protectorate  Loan  ;    Repayment 

on  account  of  Principal  and  Interest 

Cunar  1  Loan :  Repayment  on  a/c.  of  Principal 

Suez  Canal  Drawn  Shares 

China  Indemnity    , 

Temporary  Advances— Ways  &  Means  (includ 

ing  Treasury  Bills  ^345,000,000  in  1916-1917) 
Total    ... 


70,290,000 
38,243,000 

31,131,000 
8,021,000 

2,555.000 

229,760,000 

209,815,000 

650,000 

32,950,000 

£30,000 

5.981,243 
5M'3.?34 


681.339.577 


707,775,436 


2,610,000 


169,818 
100,  coo 
68,000 


394.500 

2.739,462,000 


82,270,400 
48,000 

60,200,000 

695,411,108 

168,082,620 

♦584,878,000 

5,940 
130,000 

12,797 
378,314 

916.367.R53 


Total  Receipts 

into  the 

Exchequer  from 

April  I,  1916.  to 

Mar.  24,  1917. 


£ 

35,111,065 
46^.94' 


25.57s. 006 


69,196.000 
55.748  000 
30.3^7,000 
7,653,000 

2,190,000 

197,005,000 

135.037,000 

511,000 

33,700,000 

58.>,ooo 

8,050,817 

15.811.973 

556,169,790 


581,744,796 
3,66o,oco 


91.370 

210,000 

160,000 

8,8*4 

8,000 

74,600 

1,769,632,000 

3,087,600 


424 
34,262,604 
84,140,469 
62,495  527 

160,951,700 

29,878,500 
71,750,000 

307,534,823 

776,276,710 


5.940 

130,000 

10,795 

407,930 

893,703.000 


5,959.664,7^6     |     4.780,225,612 


Note.— Estimate  as  in  House  of  Commons  Paper  No.  75  of  1917,  and  Sup- 
plementary Grants. 
♦Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account. 


EXPBMDITUKS 
AMD  OTHBK   ImUBS. 


Estimate  for 
the  Year 

1917-18. 
(See  note.) 


I 

17,000,000 
294»3oo.ooo 


Total  Issues 
out  of   the  Ex- 
chequer to  meet 
payments   from 
April  I,  1917,  to 

Mar.  23.  :oi8. 


9,700,000 


1,695,000 
2.$4«.736,oro 


2.767.631.000 


Expenditure. 
Permanent  Charge  of  Debt  .. 
Interest,  Ac,  on  War  Debt .. 
Payments  to   Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    

Expenditure    

Other  Issues. 
For  Advances  for  Bullion  ,.,, 
P'er   Advances   for    Interest    on    Exchequer 

Bonds    under     the     Capital     Expenditure 

(Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Military  Works  Acts,  1897  to  1903 

Under  Public  Buildings  Expenses  Act,  1903  . . 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supply 

For    Exchequer    Bonds    under    the    Capital 

Eicpenditure  (Money)  Act,  1904    

For  Exchequer  Bonds  under  the  Cunard  Agree- 

me.it  (Money)  Act,  1904 

For  War  Loan's,  Exchequer  Bonds,  &c., under 

Section  34  of  Finance  Act,  1917  

For  War  Expenditure  Certificates  under  War 

Loan  Act,  1916    

For  other   Debt   under  the  War  Loan  Acts, 

I9M  to  1917 

For   Depreciation   Fund   under  the    Finance 

Act,  1917 
Old     Sinking     Fund,     1907-8,    issued    under 

Section  9  of  the  Finance  Act,  1908  . 
Old    Sinking     Fund,     19:0-11,     issued    under 

the  Finance  Act,  igii.  Section  16  (i)  (b) 
Old  Sinking  Funds,  1911-12  and  1913-14,  issued 

under     the     Anglo-  Persian    Oil    Company 

(Acquisition  of  Capital)  Act,  1914 


j    Total  Issues 
out  of   the    Ex- 
chequer to  m^et 
payments    from 
April  1,  1916,  to 

j    Mar.  24.  'Q'7- 


East  Africa  Protectorate  Loan  Repayments — 
Issued  to  reduce  Debt  under  the  Finance 
Act,  IQII    

Cunard  Loan  Ret-ayts.— Issued  to  reduce  Debt 
under  the  Cunard  Agreemt.  (Money)  Act,  1904 

Suez  Canal  Drawn  Snares— Issued  to  reduce 
Debt  under  the  Finance  Act,  1898 

China  Indemnity— Issued  to  reduce  Debt 
under  the  Finance  Act,  1906    

Temporary  Advances  repaid — Ways  and  Means 
(incldg.  Treasury  Bills  £345,000,000  in  1916-17) 


Balances  in  Exchequer- 

Banic  of  England 

Bank  of  Ireland 

Total , 


18,935,-66 
169,039,706 

8.992,937 

1,582,214 
2,421,^60,010 


2.619, M^o,l3^ 


2,870,000 


169,818 
165,000 
95,000 


455,900 
12,227,203,000 


T 

19  295.457 

105,628,935 

8,540.489 
1,898,631 

l,986,56«.7«5 


a,l2l,93?,t97 


3,770,000 


9>.370 

27n,ooo 

234,000 

8,008 

8,000 

98,900 

1.8x3,790,000 

3,087,600 


1,300.000 

— 

18,517,160 

'.'74.405 

+425,200 

6,3'7.5<» 

96,147.703 

I7,6<»,7J4 

34,437,260 

- 

I0,t03 

9(,oco 

31,000 

53,160 

949,oco 

5,540 

130,000 

12,797 

378,314 

938,124,00c 


1918.   I   1917. 
Mar,  23.   Mar.  24. 

£      \      £ 
(6,789,116,  21,206.026 
1,648,445!  1,138,887 


5.941.227,225 


'8,437,56' 


5.939.664,786 


230,000 

5.940 
130,000 

10,795 

400,000 

788,553.000 


4.757.880.699 


Zi.344.9'3 


4.780,223,612 


Meuo. — Treasury  Bills  outstanding  on  Mar.  23, 1918 *f  976,100. 000 

♦  Includes  jf  144,000,  the  proCLcds  of  which  were  not  carried  to  the  Exchequer 

within  the    period   of   the  account,  besides   a    part   (not   yet  asciTtained  and 

brought  to  account)  of  the  Bills  tendered  as  subscriptions  to  National  War  ticnds. 
i  Includes  part  payment  of  Bills  and  Certi6cates  tendered  as  subscriptions 

to  National  War  Bonds. 


The  Week  in  Mines. 


The  violent  German  onslaught  in  the  West  has  naturally 
diverted  attention  from  suqh  things  as  investments,  speculative 
and  otherwise,  and  consequently  the  mining  markets  have  been 
much  less  active  this  week.  There  was  a  disposition  to  mark  down 
prices  on  Monday,  but  no  selling  developed,  and  as  some  buy- 
ing orders  came  to  hand  for  certain  specialities,  the  tone  subse- 
quently became  firmer.  Confidence  in  the  power  of  the  Allied 
armies  to  hold  the  Germanic  hordes  has  been  strengthened  by 
what  the  divisions  holding  the  front  against  greatly  superior 
numbers  have  achieved,  and  it  is  felt  that  when  the  High  Com- 
mand chooses  the  moment  to  use  its  formidable  reserves,  and 
so  readjust  the  numerical  balance,  the  German  rush  will  be  fully 
checked. 

South  A>fD  West  Africans. 

The  event  of  the  week  has  been  the  securing  of  the  West  dc 
Rietfontein  farm  by  the  Anglo-American  Corporation,  in  con- 
junction with  the  C.M.S.  interests,  which  now  control  a  ten- 
mile  stretch  of  reef -bearing  ground  on  the  Far  East  Rand.  The 
new  lease  is  not  e.xpected  to  reach  the  producing  stage  for  four 
years.  East  Rand  Minings  have  risen  6d.  to  i8s.  on  the  first 
reading  of  the  Mining  Leases  Bill,  and  Oceana  Devels.  have 
improved  to  7s.  gd.  On  the  other  hand,  profit-taking  has 
caused  a  relapse  of  |  to  aaf  in  New  Modders,  i  to  y\i  in 
Modder  R's,  i  to  3^  in  Modder  Leases,  and  9-32  to  3I  in 
Springs.  Among  Diamond  descriptions,  De  Beers  deferred  de- 
clined J  to  i2i  the  prefs,  J  to  12J,  and  Premier  deferred  J  to 
74.  In  the  Rhodesian  section,  Rezendes  have  relapsed  i  to 
4A,  and  Tanganyikas  i  to  ^f.  Chartereds  are  back  to  14s.  gd. 
West  Africans  have  been  a  dull  market,  Gold  Coast  Amalga- 
mateds  have  declined  is.  to  20s.  6d.,  but  Ashanti  Goldfields  at 
the  same  figure  have  been  un,^ffected  by  the  reduction  in  the 
dividend  from  25  to  20  per  cent. 

Copper  and  Miscellaneous. 
Copper  shares  have  been  fairly  steady,  except  Mount  Elliotts, 
which  have  declined  i  to  3^,  and  Mason  and  Harrys,  which  fell 
to -2 1  on  the  heavy  reduction  in  dividend  for  the  past  year. 
Rio  Tintos  were  unaffected  by  the  dividend  reduction,  owing 
to  the  large  carry  forward.  Broken  Hill  shares  have  been 
purchased   on    colonial    account,    particularly    British   Proprie- 


tarys,  which  are  is.  higher  at  41s.  gd.  and  Norths,  which  have 
advanced  3-32  to' 3  5-32.  The  "boom"  in  Nigerian  tin  shares 
did  not  last  very  long,  and  an  appreciable  reaction  has  occurred 
throughout  the  whole  list.  Ropps  have  declined  2s.  3d.  to 
21s.  gd.,  Jantars  3s.  gd.  to  23s,,  Nigerian  Tin  Corporations  3-32 
to  I,  Naragutas  tV  to  29-32,  Mongus  is.  3d.  to  163.  3d.,  and 
Anglo-Continentals  is.  to  15s.  On  the  other  hand,  Kadunas 
show  a  rise  of  is.  5d.  to  i8s.  6d.  Profit-taking  following  the 
issue  of  the  report  caused  South  Croftys  to  relapse  2s.  3d.  to 
32s.  6d.,  but  Siamese  Tins  rose  -^g  to  3^  on  the  dividend,  and 
Gopengs  imgioved  to  i||  on  the  report.  Tomboys  have  fallen 
IS.  to  17s.  6d.  on  the  disappointing  returns  for  the  first  two 
months  of  the  year.  Russian  and  Indian  mines  have  weakened 
slightly. 


MINING    NEWS. 


West  African  Gold  Output. — In  February  the  production 
of  gold  was  ;^ii2,865.  an  increase  of  /^7,973.  The  following 
table  shows  the  monihly  production  since  January,  1914. 


Month. 

1918. 

1917. 

1916. 

'9'5-  , 

1914. 

Jan.     . . 

£ 

107  8^3 

£ 

"31.665 

£ 
140,579 

143.649 

128862 

Feb.     . . 

n2,86s 

104,89s 

137,739 

'440J4 

'23.'69 

Mar.     .. 

— 

'58,727 

150,937 

IJ3.770 

'3'. 392 

April    .. 

— 

123,825 

'35,976 

l<9,978 

13'.697 

May     .. 

— 

121.104 

131,976 

142.121 

145.227 

June    .. 
July     .. 

— 

"4.489 

127,107 

13^.289 

'47.289 

— 

142.017 

128,574 

140,290 

'5 '.923 

Aug.     . . 

— 

130,278 

"5.'43 

'39.364 

150.386 

Sept.   .. 

— 

127,168 

127,138 

135, 7<4 

'54  3 "6 

Oct.     . . 

— 

126,295 

I3S.577 

141,77' 

159,410 

Nov.    .. 

— 

126,915 

130.101 

122.138 

'54.674 

Dec.     .. 

— 

122,602 

146,49 

158,323 

'47,69; 

Totals 

220.718 

'.529977 

1,615.306 

■  7C6,(73 

',/2,-.Oi4 

The  increase,  as  compared  with  January,  is  due  to  the  larger 
ou  put  obtained  by  the  Abbontiakom  mine,  wh?se  production 
recovered  from  /12.648  to  /17.289,  ihough  this  is  about  /^3.ooo 
less  than  in  December. 

New  Sharlston  Collieries. — The  report  for  1917  states  that 
the  cost  of  production  continues  to  advance  as  the  result  of  the 
enhanced  cost  of  materials  and  labour.      Gross  profits  declined 


March  30,   igiS. 


Cbe  Jnvestots'  IReview* 


327 


from  /2i,247  to  /iC.gyG.  It  is  proposed  to  appropriate  ;^3,ooo 
for  depreciation,  against  ;,i'5,ooo,  to  pay  a  final  dividend  of 
ics.  per  share,  making  5  per  cent,  for  the  year,  and  to  carry 
forward  ;^io,7o;,  against  ^8,279.  The  dividend  for  1916  was 
also  5  per  cent. 

C^KOIFK  Collieries.— The  profits  of  this  company  for  1917 
were  also  on  a  smaller  scale  than  in  191(1,  the  total  being  ^61,242 
against  jf  73,986  ;  the  dividend,  however,  is  maintained  at  20  per 
cent.,  by  a  final  payment  of  15  per  cent.,  and  ^^41,942,  against 
/.'27,643,  is  carried  forward. 

RiETFONTEiN  WEST  LEASE. — It  is  now  announced  that  four 
tenders  were  made  for  the  lease  of  mineral  rights  on 
the  Rietfontein  West  farm,  one  from  the  Central  Mining 
and  Investment  Corporation,  two  from  the  General  Mining 
and  Finance  Corporation,  and  one  from  Sir  Abe  Bailey's 
Anglo-American  Corporation  of  South  Africa,  The  last- 
named  corporation  was  successful  in  getting  the  lease.  Their 
proposal  is  to  form  a  separate  company  in  the  Transvaal, 
with  a  capital  of  ^/^i, 400,000  in  £1  shares,  to  be  issued  at  par. 
Four  hundred  thousand  shares  will  be  taken  up  immediately 
•on  registration,  and  of  the  remaining  million,  two  shillings  per 
share  on  registration  and  the  balance  as  and  when  required. 
The  tenderers  take  a  commission  of  5  per  cent.  The  considera- 
tion payable  to  the  Government,  in  addition  to  taxation,  is  a 
percentage  of  profits  calculated  on  a  sliding  scale.  A  portion  of 
the  initial  issue  of  400,000  shares  will  be  offered  to  the  public 
at  par.  The  Anglo-American  Corporation  was  formed 
by  the  Consolidated  Mines  Selection  group  in  conjunction  with 
big  American  financial  interests,  including  the  Guaranty  Trust 
Co.  and  connections  of  Morgans,  and  this  is  the  first  occasion 
oil  which  American  interests  have  secured  an  interest  in  the  Rand. 
Facilities  will  be  granted  by  the  allied  Springs  Mines  to  expe- 
dite the  development  of  the  lease  area.  Taking  working  costs 
at  a  standard  of  i8s.  per  ton,  it  is  estimated  that  the  Government 
will  receive  under  the  terms  of  the  lease  about  one-half  of  the 
nett  profit  from  a  yield  of  30s.  per  ton,  and  about  54  per  cent, 
from  a  yield  of  35s.  per  ton.  The  arrangement  with  the  Springs 
Mines  will  save  nearly  two  years,  as  compared  with  independent 
exploitation  of  the  new  lease.  Under  this  scheme  the  Springs 
Mines  will  receive  an  option  on  150,000  shares  at  22s.  6d.  per 
share  for  two  years,  or  one  year  after  the  conclusion  of  peace, 
whichever   is  the  longer. 

"SoiJTH  Ceofty  Mine.— Last  .year  was  the  most  profitable 
period  in  the  history  of  the  South  Crofty  mine.  The  amount 
of  ore  crushed  declined  from  71,706  tons  to  70,055  tons,  but 
the  yields  were  610  tons  of  tin,  against  607  tons,  88  tons  of 
wolfram  against  95,  and  828  tons  of  arsenic  against  783. 
Owing  to  the  high  prices  which  ruled  for  these  products,  the 
yield  per  ton  treated  rose  from  £1  8s.  gd.  to  £1   19s.   iid.     The 


average  price  obtained  for  black  tin  was  ;^i2o  13s.  yd.  per  ton, 
against  ;^io4  83.  id.,  for  wolfram  ;;^i65  12s.  8d.  against  ^^151 
I2S.  gd.,  and  for  arsenic  ^^52  7s.  5d.  against  ;^27  8s.  per  ton 
in  1916.  Working  costs  rose  by  only  3s.  7d.  to  25s.  yd.  per 
ton,  consequently  the  margin  of  profit  was  more  than  doubled, 
the  figure  being  14s.  5d.  per  ton,  as  compared  with  6s.  gd.  per 
ton.  The  total  profit  was  .£43,852,  an  increase  of  ^£24,680.  A 
final  dividend  of  is.  gd.  per  share,  tax  free,  is  proposed,  which 
is  6d.  more  than  had  been  expected.  This  will  bring  the  year's 
distribution  vp  to  70  per  cent.,  against  32J  per  cent,  for  1916, 
and  is  the  highest  dividend  yet  paid  by  the  company.  After 
setting  aside  ;£5,ooo  for  income-tax  reserve,  the  carry-forward 
is  raised  from  .^f  1,358  to  ^2,88g. 

GoPENG  Consolidated. — The  profits  for  the  year  ended  Sep- 
tember 30  show  a  further  expansion.  The  total  is  .£88,997, 
against  .£87,743  in  1915-16,  and  ^'44,633  in  1914-15.  It  is  pro- 
posed to  write  £9,493  off  property  and  pipeline  account,  to  place 
^io,ooo  to  income-tax  reserve,  to  pay  a  bonus  dividend  of  lod. 
per  share,  making  3s.  6d.  for  the  year,  as  against  3s.  for  1915-16, 
and  to  raise  the  carry  forward  from  £16,993  to  £17,237.  These 
results  were  achieved,  notwithstanding  a  somewhat  lower  out- 
put, the  figures  being  17,118  piculs,  a  decrease  of  1,091  piculs. 
But  the  amount  received  from  sales  of  tin  ore  again  reached  a 
record,  the  total  being  ^£120,065,  an  increase  of  ;£9,6i4.  Work- 
ing costs  have  largely  increased,  and  are  much  in  excess  of  ex- 
pectations. This  is  partly  due  to  the  construction  of  works  for 
the  retention  of  slimes,  recently  enforced  by  Government  order. 

Tekka-T.«ping. — The  accounts  for  the  year  ended  Octtber 
31  show  a  decline  in  profits  from  ^£48,273  to  ^'37,832.  The  divi- 
dend, however,  is  maintained  at  4s.  per  share,  ^5,978,  against 
^14,657,  is  written  off  for  dredging  plant  depreciation,  and 
^■25,541  is  carried  forward,  subject  to  excess  profits  duty.  Re- 
turns of  tin  ore  show  a  reduction  of  208  tons,  but  the  profit  per 
ton  was  higher  owing  to  the  increase  in  price  of  tin.  The  tot;>l 
output  was  7,752  piculs,  valued  at  $459,028.  In  order  to  carry 
out  the  scheme  of  exploitation,  it  will  be  necessary  to  treat 
ground  of  low-grade  this  year,  and  this  will  result  in  the  stan- 
dard of  returns  showing   a  decrease. 


Tea,  Oil  and   Rubber. 


Nothing  of  special  interest  has  occurred  in  the  Rubber  market 
this  week.  The  price  of  standard  crepe  has  hung  around 
2S.  5id.,  and  in  the  share  market  buyers  have  been  standing 
aloof  because  no  one  can  tell  how  the  20  per  cent,  restriction  of 
output  is  going  to  affect  the  fortunes  of  those  companies  which 
have  agreed  to  this  policy.  It  is  evident,  however,  that  it  must 
mean   a  substantial  increase  in   the  cost   of   production,  and   to 


»WISS   BANK   CORPORATION 

BASLE,     ZURICH,     ST.     GALL,     GENEVA,     LAUSANNE. 

Branch  Offices:    BIENNE,    CHIASSO,    HERISAU,    NYON. 
Agencies:    AIGLE,     MORGES,     RORSCHACH,     VALLORBE. 

Chairman  of  the  Board  of  Directors :    A.  SIMONIUS. 


LONDON    OFFICE  -  43,    LOTHBURY,    E.C.2. 

WEST   END   BRANCH:   lie,   REGENT   STREET.   WATERLOO   PLACE,   S.W.I. 

General  Manager  in  London  :  X.  CASTELLI. 


BALANCE-SHEET,  31st  December,  1917  (£1  =  Fr.  25). 


Liabilities. 


Dr. 


Share  Capital     3,280,000 

Reserve  Funds 1,110,000 

Pension  Fund    108,946 

Fixed  Deposits 4,110,170 

Current  Accounts,  &c 23,568,014 

Bills  Payable  and  Acceptances 1.854.997 

Profit    347.123 


£34.379.250 


Assets. 

Cr.  £ 

Cash,  &c 1,637,894 

Banks  and  Bankers 4.587,363 

Bills  Receivable 8,945,349 

Loans  at  short  dates  on  Securities 1,211,^2 

Current  Accounts 15.835.873 

Permanent  Investments 264,366 

Government,  Railway  and  Other  Securities 1,395,204 

Syndicates 227,280 

Bank  Premises  and  other  Property 274,077 


£34.379.250 


PROFIT  AND  LOSS  ACCOUNT  for  the  Year  ended  3rst  December,  1917. 


Dr. 

General  Expenses  and  Taxes 

Depreciation  of  and  Reserves  against  Secuiities, 
Syndicates  and  Permanent  Investments 

Provision  for  bad  and  doubtful  Debts  (less  return 
of  amounts  previously  written  oft)  and  writing 
down  Furniture,  &c 

Net  profit  available 


£ 
325.541 

47,000 


8,259 
347.123 

£727.923 


Cr. 

Balance  from  1916 

Discounts 

Interest 

Commissions 

Coupons  and  Foreign  Moneys 


£ 

15,188 
355.663 
114,809 
209,647 

32,616 


£727.923 


Alter   deduction   of  expenses  and   taxes,   providing    for     depreciation     of    and    reserves    against     Securities,     Syndicates,     and 

tPermanent    Investments,    and    writing    down     bad     and     doubtful    Debts,  Bank    Furniture,    &c.,    and   after   transferring   £8,000   to 

Pension    Fund,  the   NET   PROFIT    for   the   year   ended    31st  December,    1917,  inclusive   of  £15,188   brought  forward,   amounts  to 

£339,123;  less  statutory  participation  of  Directors  and   Managers,  £40,492— leaving   a  balance  of  £298,631,  out  of  which  the  Board 

propose  to  pay  8  per  cent,  dividend  (as  in  1916),  £262,400,  and  to  carry  forward  to  new  account  £36,231. 


328 


^he  Jnveetors'  IReview, 


March  30,  191 8. 


uhat  extent  there  may  be  compensation  in  higher  average  pric.-s 
remains  to  be  seen.  We  gat)ier  from  several  sources,  however, 
that  the  scheme  which  looked  superficially  attractive  enough  Oii 
pa))er  is  beginning  to  be  more  critically  scrutinised  by  many 
of  the  companies  aiSected,  and  if  it  does  not  prove  a  complete 
success  it  is  I'kely  enough  to  be  characterised  as  a  ghastly 
failure. 

Labl'  (F.M.S.)  Klbrkr  Co.,  I.to. — Year  to  December  31.  Crop 
amounted  to  874,600  lbs.,  an  increase  of  260,000  lbs.,  but  the 
average  price  obtained  was  only  2s.  3.72d.,  against  a.  7. rod., 
while  alUn  costs  increased  from  11. Sod.  to  is.  i.72d.  Revenue 
amounted  to  ;^ioi,ooo,  an  increase  of  ^^'21,000,  but  the  nett  profit 
was  only  a  trifle  larger  at  /^^ifi^o.  The  directors,  however, 
have  adopted  a  prudently  conservative  policy,  and  after  placing 
;^4,ooo  more  at  /'i6,2oo  to  reserve,  they  cut  down  the  dividend 
from  40  per  cent,  to  30  per  cent.,  and  increase  the  carry  forward 
by  /^5,ooo  to  ^'19,000.  The  reserve  of  ^^100,000  is  now  equal  to 
the  whole  of  the  share  capital,  and  there  are  no  debentures,  so 
the  company  is  in  a  very  strong  position,  while  the  large  carry 
forward  is  doubtless  sufficient  to  provide  for  excess  duty  if  any. 
Normally  this  year's  output  would  be  970,000  lbs.,  but  under  the 
restriction  scheme  it  will  be  cut  down  to  about  700,000  lbs.,  and 
as  the  directors  rather  pathetically  remark,  "an  increase  in  the 
co.st  of  production  must  be  anticipated."  The  higher  costs  last 
year  were  due  to  everything  pertaining  to  the  upkeep  and  man- 
agement of  the  estate  having  been  dearer,  and  there  is  not  likely 
to  be  any  relief  in  this  respect  in  the  near  future.  Area  planted 
amounts  to  3,025  acres,  of  which  503  acres  were  planted  in 
1912  and  630  acres  in  1913.  so  that  it  will  be  possible  to  increasi' 
production  very  considerably  in  the  next  year  or  two  if  it  should 
be  desired,  or  when  the  K.fl.A.  ban  is  removed.  There  are  also 
»55  acres  in  reserve,  and  perhaps  the  labour  saved  in  tapping 
tnay  be  used  in  planting  them. 

Pegou,  I.td. — Year  to  September  30.  This  comp.iny  does  not 
give  such  full  details  as  we  could  wish — all-in  cost,  among  other 
items,  being  omitted.  Last  year's  crop  was  706,760  lbs.,  against 
an  estimate  of  690,000  lbs.,  and  an  increase  of  102,000  lbs.  over 
the  previous  12  months.  Average  price  obtained  was  2s.  6.7d., 
against  2s.  8.o2d.,  while  the  f.o.b.  cost  was  practically  the  same 
at  I2.4d.  Revenue  amounted  to  ;f 90,300.  an  increase  of  ^fii.ooo, 
but  the  nett  proceeds  were  only  ^^1,200  higher  at  _,f  50,900,  and 
after  placing  ^2,200  more  to  special  reserve,  the  nett  profit  is 
;^i,ooo  lower  at  ;f32,740.  Consequently  the  directors  reduce  the 
dividend  from  25  per  cent,  to  20  per  cent.,  and  carry  forward 
;^5,46o,  against  .,^410.  Tor  the  current  year  the  output,  under 
the  R.G.A.  restriction,  is  estimated  at  600.000  lb:,.,  but  the 
report  does  not  furnish  particulars  as  to  the  age  of  the  trees  on 
the  estate,  and  we  cannot  judge  whether  the  scheme  is  likely  to 
be  good  or  bad  for  it.     There  is  no  mention  of  excess  duty. 


Devon  Estates  (Mai..\cca),  Ltd.— Year  to  June  30.  This  com- 
pany has  not  reached  the  dividend  paying  stage,  but  last  year 
the  output  was  258,000  lbs.,  from  which  the  revenue  was 
^32,620,  and  there  is  a  nett  profit  of  jC3,240  to  be  carried  for- 
ward. No  information  is  given  a's  to  the  acreage,  age  of  trees, 
average  price  realised^  or  cost  of  production,  so  it  {•>  impossible 
to  form  any  idea  about  the  position  or  prospects,  but  we  should 
judge  after  seven  year.?  that  the  c.-ipitalisation  is  terribly  heavy. 


DIVIDENDS     ANNOUNCED. 

Ampat  (Sumatra)  Rubber  Estate. — Final  15  per  cent,  (actual) 
for    year    ended    September    30 ;   to  reserve,   ^4,000 ;  forward, 

American  Investment  Trust  Co. — For  half-year  ended  March 
15,  at  rate  of  10  per  cent,  per  annum  (making  8  per  cent,  for 
the  year)  on  deferred  stock,  the  same ;  forward  /C2$,(>$6,  against 

Birmingham  Small  Arms  Co. — Interim  on  the  ordinary  shares 
of  5  per  cent.,  free  of  tax. 

Coltness  Iron  Co. — Interim  4  per  cent,  (actual)  for  year  ending 
July  31,  1918,  payable  April  15,  the  same  as  a  year  ago. 

Foreign  American  and  General  Investments  Trust  Co. — For 
half-year  ended  March  15  at  rate  of  6  per  cent,  per  annum 
(making  5  per  cent,  for  year)  on  the  deferred  stock,  forward 
^20,349. 

H.  and  C.  Grayson. — Interim  of  6d.  per  share,  less  tax,  on  the 
preference  shares. 

W.  T.  Henley's  Telegraph  Works  Co. — Final  10  per  cent., 
making  15  per  cent,  for  year,  and  a  bonus  of  los.  per  share,  less 
tax,  the  same  as  a  year  ago. 

Intern;itional  Linotype. — Final  4  per  cent,  for  y«ar  ending 
March  31,  making '6|  per  cent,  for  the  year,  as  against  6  per 
cent. 

Kassa-Ropp  Tin  Co. — is.  per  share  has  been  declared,  payable, 
free  of  tax,   March  26. 

Montevideo  Waterworks  Co. — Final  5  per  cent.,  less  tix, 
making  8  per  cent,  for  year;  ;f 20,000  to  reserve;  the  same  as 
last  year. 

Mason  and  Barry. — 2s.  per  share  for  1917,  or  10  per  cent., 
less  tax,  against  45  per  cent.  ;  forward  /35,ii9,  against  .1^36,138. 

National  Bank  of  Egypt.— 8  per  cent,  for  1917,  against  6  per 
cent,  for  1916. 

Rio  Tinto  Co.— Final  45s.  a  share,  against  55s.  a  year  ago. 
making  90s.  for  1917,  against  959.  for  1916;  forward  ;f 519,000. 
against  ^283,330. 

Siamese  Tin  Syndicate.— Interim  of  10  per  cent.  (2s.  per 
share),  less  tax,  in  respect  of  the  current  year,  payable  April  16. 
the  same  as  a  year  ago. 


WHITEHEAD  AIRCRAFT  (1917)  U 


T^ULL  Prospectus  and  Application  Forms 
can  be  obtained  from  the  London 
Provincial  and  South  Western  Bank,  Ltd., 
Head  Office,  170,  Fenchurch  Street, 
London,  E.G.,  and  at  any  of  their  branches ; 
also  the  National  Provincial  Bank  of 
England,  Ltd.,  Head  Office,  15,  Bishops- 
gate,  London,  E.G.,  and  at  any  of  their 
branches. 


March  30,   1918. 


Zbc  Jnvestors'  IReview. 


329 


n 


COMPANY    RESULTS    IN     BRIEF. 


Name  and 

Accounting 

Period. 


Gross 
Profit. 


Gandy  Belt  Manufacturing 

Co (Dec.) 

Do Prev. 

General    and   Commercial 

Inv'stm'ntTrust(Feb.)    39,920 

Do Prev.    41,430 

New  Sharlston   Collieries 

(Dec.)!  318,280 
Do Prev. I  296,840 


Orient  Trust    (Dec.) 

Do Prev. 

Pengkalen (Sept.) 

Do Prev. 

Tekka-Taiping (Oct.) 

Do Prev. 


12,770 
12,230 
26,470 
23,030 

55.820 
70,560 


Nett 
Profit. 


41.300 
38,160 

24,210 
26.380 

16,970 
21,240 
11,900 
10,540 
10,850 
10,130 
37.830 
48,270 


Total 
Re- 
serves. 


32,500 
22,000 

105,450 
103,230 

33.000 
33.000 
15,000 
12,500 

nil 

nil 

nil 

nil 


Divi- 
dend. 


Carried 
For- 
ward. 


30 
25 

5i 
5i 

5 

5 

7i 

74 

H 

2i 

20 

20 


5.600 
4.430 

17,030 
16,440 

10,700 
8,280 

2,750 
1,780 

3.900 

550 

25.540 

20,620 


Ansv\^eps  to  Correspondents. 


*.*  A  Koy  to  thesB  Answ/ers  wflll  be  posted  early 
each  yveek  for  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  for  six  months,  or 
Ss.  9tl,  for  three  months. 

Deposits  against  future  queries  may  be  ioilgeti 
with  the  Publisher. 

John  Halifax. — Vour  question  came  only  on  Saturday  morn- 
ing. We  think  the  shares  might  be  held,  as  they  seejn  bound 
to    recover    after    the    war. 

S.  S.  ]. — No.  I,  No.     No.  2,  Perhaps  yes. 

Sylvan. — We  wish  we  knew.  Our  di.sposition  would  be  to 
sell  and  be  done  with  it,  but  we  may  be  wrong,  the  future  is 
so    uncertain. 

Sam. — Your  No.  i  offers  a  good  speculative  chance.  Your 
No.  2  cannot  be  recommended. 

H.  P. — The  good  ones  are  quite  dear  enough  now.  Perhaps 
some  of  those  at  a  discount  might  offer  chances  of  profit,  but 
the  future  is  most  uncertain. 

White  F'lour. — \'es,  they  look  tempting  on  last  dividends, 
but  how  long  will  these  be  maintained  ? 

C.  T.  N. — (i)  They  do  not  yield  enough  to  make  them 
an  attractive  purchase  at  present.  (2)  Hold  ;  the  company  has 
a    good   property,   and   is  carefully  managed. 

Win.— The  prices  will  be  governed  by  those  for  Govern- 
ment issues.  There  is,  we  fear,  small  prospect  for  a  long  time 
to  come  of  any  appreciable  recovery  in  quotations  of  irredeem- 
able stock,  bearing  fixed  rates  of  interest,  but  the  dividends 
are  as  sure  as  any  can  be. 

J.  G.  M. — Holders  are  no  doubt  compelled  to  sell  now  and 
again,  and  they  cannot  naturally  get  the  cost  price  for  them. 
The  quotations  do  not  include  accrued  interest,  which  has  to 
be  paid  separately  to  the  seller.  We  do  not  think  the  sales 
amount  to  much.  * 


What    Balance   Sheets   Tell. 

O.   H-    EVANS    AND    CO.,    LTD. 

Like  most  similar  businesses  this  company  did  well  in  the 
year  to  February  19,  the  gross  profits  showing  an  increase  of 
-624,000  at  ^225,130.  Expenses,  however,  were  higher,  and  the 
nett  profit  is  ^^  10,300  up  at  ;^69,3oo.  After  placing  ^5,205  to 
staff  pension  fund,  setting  aside  / 10,900  for  part  payment  of 
mortgage  {both  new  items),  and  proi-idinp  for  prior  dividends, 
the  balance  for  equal  division  between  the  ordinary  and 
founders'  shares  is  ^5,000  lower  at  £2c„-joo.  Fortunately 
£ifioo  more  was  brought  in,  and  the  ordinary  dividend  is 
again  made  up  to  12J  per  cent,  for  the  year,  and  the  carry 
forward  is  increased  by  ^^3,000  to  ^16,400.  Including  a 
larger  amount  brought  forward  the  proportion  due  to  the 
founders'  shares  is  ;^2,4oo  up  at  ^17,830,  and  the  dividend  is 
raised  from  ^5  5s.  to  £^  per  share,  leaving  /.,  1,000  less  at 
;^  3,830  to  be  carried  over.  The  dividend  on  D.  H.  Evans  and 
Co.  Founders'  Shares  Co.,  Ltd.,  will  consequently  be  as.  4d. 
against  is.  8d.  last  year,  leaving  ^{^200  against  /coo  to  -be 
carried  forward. 

BANK  OF   VICTORIA,  LTD. 

Modest  progress  was  again  shown  in  the  half-year  to  December 
31,  and  the  gross  profits  amounted  to  jQiiitT^o,  while  the  nett 
were  ^58.200.  After  again  paying  6  per  cent,  oer  annum  on 
the  ordinary  shares  ^25,000  is'placed  to  reserve,*  and  ;^io,8oo 
IS  earned  forward  as  against  ;^24,ooo  brought  in.  Current 
and  deposit  accounts  amount  to  ;^6,945,ooo,  cash  balances  to 
/i,6io,ooo,  money  at  short  call,  &c.,  to  ^492,000,  investments 
to  jf  660,000,  and  loans,  ,S:c.,  to  ;^6,o8o,ooo.  The  balance-sheet 
totals  at  ^{^9,909,000,  an  increase  of  about  ^■385,000  as  compared 
with  the  previous  half-year. 

AUSTRALIAN    BANK    OF    COMMERCE,    LTD- 

In  the  half-year  to  December  31  profits  amounted  to  ;^ 72, 420, 
or  about  the  same  as  in  the  corresponding  period.  Interest  re- 
quired rather  less,  and  the  nett  profit  is  up  ;,f  2,000  at  .^^33,050. 
After  again  placing  ;f  10,000  to  reserve  and  paying  a  dividend 


at  the  rate  of  3  per  cent,  per  annum  the  carry  forward  is  /8,ooo 
higher  at  £  16,830,  a  larger  amount  having  been  brought  in. 
Current  and  deposit  accounts  have  increased  ^412,000  to 
^3,750,000,  bullion  is  up  ^17,000  at  ^587,000,  and  cash  balances 
in  London  have  risen  ;i;88,ooo  to  ^250,000,  while  Australian 
notes  are  up  ^185,000  at  ^455,000.  Bills  discounted  and  other 
advances  have  increased  ;^2oo,ooo  to  ^^4,636,000,  and  the  nett 
result  is  an  increase  in  the  balance-sheet  total  of  ^310,000, 
raising  it  to  ^7,144,000. 

MERRY   AND   CUNINCHAME,   LTD. 

This  iron  and  coal  company  has  fallen  on  evil  times.  In  the 
year  to  November  30  gross  profits  fell  to  ^22,960,  a  decrease 
of  no  less  than  ;^i35,ooo,  and  the  nett  profit  was  only  ^2,800, 
or  ;^i26,ooo  smaller.  However,  ;;^57,ooo  more  at  ;^ii3,26o  was 
brought  in,  and  the  dividend  of  10  per  cent,  (absorbing 
^12,500)  is  repeated,  leaving  ^^52,600  to  be  carried  forward, 
('hanges  in  the  balance-sheet  throw  little  light  on  the  position, 
but  the  cash  balances  appear  to  be  ample. 


COMPANY  MEETINGS. 


BRITISH 


INSULATED    AND 
CABLES,    LTD. 


HELSBY 


The  22nd  annual  general  meeting  was  held  at  Liverpool  en 
Monday,    Dr.   E.   K.    Muspratt,  chairman,   presiding. 

In  moving  the  adoption  of  the  report  and  accounts  for  the 
year  1917,  the  Chairman  said  the  results  were  the  best  obtained 
by  the  company  for  any  year's  trading,  and  would,  he  was 
sure,  be  regarded  as  satisfactory.  (Hear,  hear.)  The  output 
had  been  almost  entirely  for  the  purposes  and  to  the  order  of  the 
Crovernment,  and  the  directors  trusted  that  the  very  effective 
help  the  company  had  thus  been  able  to  render  would  not  be 
overlooked  or  forgotten  in  the  future.  As  a  controlled  firm  we 
have  temporarily  lost  the  self-direction  and  initiative  upon 
which  a  successful  business  must  depend,  and  while  during  a 
state  of  war  the  outside  control  to  which  we  are  subjected  may 
be  necessary,  and  in  the  best  interests  of  the  State,  we  and  the 
great  manufacturing  concerns  established  in  this  country  must, 
for  the  prosperity  of  the  nation,  resume  full  control  of  our  own 
affairs  at  the  very  earliest  moment,  consistent  with  public 
safety. 

1  am  constrained  to  make  these  remarks  because  I  have  a 
growing  feeling  that  the  numerous  factories  established  wit!) 
public  money  for  national  purposes  during  the  war  may,  after 
the  war,  prove  our  chief  competitors  for  all  Government  orders 
and  business,  and  the  freedom  which  we  seek  in  the  conduct 
of  our  business  is  necessary  in  order  that  those  profits  may  be 
made  which  will  enable  this  country  to  repay  the  enormous  debt 
which  it  has  contracted  in  order  successfully  to  pros'^cute  the 
pre.sent  war. 

The  Chairmian  went  on  to  say  that  everything  pointed  to  the 
fact  that  after  the  war  was  over  new  and  strenuous  efforts  would 
have  to  be  made  to  enable  the  company  to  resume  the  important 
position  held  by  it  before  the  outbreak  of  the  conflict.  Doubtless 
some  of  the  new  departments  started  since  the  war  commenced 
would  help  towards  this  end  if  unfettered  by  unnecessary 
Government  control,  and  certainly  the  company  was  in  as  good 
a  position  to  compete  for  export  business  as  any  manufacturer 
in  the  same  line  in  this  or  any  other  country. 

The  number  of  the  company's  men  who  had  joined  the  Forces 
had  now  reached  a  total  of  1,173,  *""^  68  had  fallen  while  on 
active  service.  The  difficulty  of  retaining  sufficient  skilled 
men  had  been  very  great,  and  the  employment  of  women  workers 
bad  been  greatly  increased  with,  he  was  pleased  to  say,  very 
satisfactory  results. 

After  reference  to  the  profit  and  loss  account  and  capital 
expenditure,  the  Chairman  said  that  in  regard  to  investment.'i 
the  shareholders  would  be  pleased  to  learn  that  the  directors 
had  again  valued  their  securities,  with  the  result  that  they  con- 
sidered them  to  be  worth  more  than  the  figure  standing  in  the 
b.ilance-sheet.  (Hear,  hear.)  The  company's  investments  in  the 
Midland  Electric  Corporation  for  Power  Distribution,  Ltd.,  and 
in  the  Automatic  Telephone  Manufacturing  Co.,  Ltd.,  had 
proved  satisfactory,  although  in  regard  to  these  two  companies 
the  excess  profits  tax  fell  upon  them  very  heavily,  and  prevented 
them  obtaining  anything  like  a  just  reward  for  the  cost  and 
risk  they  had  undertaken. 

The  Chairman  passed  on  to  refer  to  the  capitalisation  of  re- 
serves and  the  proposal  to  issue  bonus  shares.  The  directors, 
he  said,  had  come  to  the  conclusion  that  the  point  had  been 
reached  when  further  increase  of  the  reserves  could  not  be 
justified.  Another  reason  for  the  issue  of  bonus  shares  was 
that  the  dividends  paid  during  recent  years  had  shown  a  per- 
centage on  the  ordinary  share  capital,  which  was  misleading 
to  the  public,  because,  as  a  matter  of  fact,  all  the  reserves  of 
the  company  weie  employed  as  capital  of  the  business,  and  in 
1917  the  actual  capital  employed  represented  more  than  double 
the  amount  of  the  noyiinal  share  capital.  The  payment  of  divi- 
dends at  so  high  a  rate  as  25  per  cent,  gave  an  erroneous  im- 
pression that  profits  on  the  capital  were  unduly  high.  It  was 
therefore  proposed— and  the  consent  of  the  Treasury  had  been 
received — to  increase  the  share  capital  by  the  capitalisation  of 
;f;;oo,ooo  of  the  company's  surplus  assets  out  of  the  reverse 
nccount,  and  to  issue  to  the  ordinary  shareholders  a  further 
5')0,ooo  shares  of  £1   each. 


330 


XTbe  Jiivestors'  IRcpievv. 


March  30,  191 8. 


The  Chairman  concluded  by  eulogising  the  services  of  the 
principal  officials  of  the  staff  of  tlie  company,  which,  he  said, 
iiad  not  only  been  to  the  advantage  of  the  company  itself,  but 
had  proved  of  great  benefit  to  the  whole  nation. 

Sir  Harmood  Uanner  seconded  the  resolution,  which  was 
carried  un<inimously. 

The  Chairman  next  proposed  the  payment  of  a  dividend  of 
7i  per  cent,  which,  with  the  interim  dividend,  made  15  per 
cent,  for  the  year,  and  also  a  bonus  of  10  per  cent,  en  the 
ordinary  shares. 

Mr.  W.  A.  Cross  seconded  the  motion,  which  was  carried 
unanimously. 

On  the  motion  of  Mr.  James  Taylor,  seconded  by  Mr.  ]. 
Carlton  Stitt,  Dr.  Muspratt  and  Sir  Arthur  Stanley,  the  retir- 
ing directors,  were  re-elected. 

Messrs.  Chalmers,  Wade  and  Co.  having  been  reappointed 
auditors, 

Mr.  C.  R.  Crichtcn  movpd  a  vote  of  thanks  to  the  directors 
for  their  .'■ervices  during  the  year.  He  said  the  results  re- 
flected the  greatest  credit  upon  their  acumen  and   foresight. 

Mr.  J.  J.  liate  seconded,  and  the  resolution  was  carried  with 
upplause. 

Sir  Ilarmixid  Banner,  in  replying,  remarked  upon  the  in- 
crease of  work  and  anxiety  imposed  on  the  board  under  present 
conditions,  and  paid  a  special  tribute  to  the  oflficials  of  the 
company  and  the  whole  of  the  staff  for  the  zeal  they  had  dis- 
played in  the  conduct  of  the  business,  adding  that  their  efforts 
had  been  not  only  of  service  to  the  company,  but  had  been  of 
benefit  to  the  whole  of  the  country. 

The  resolution  was  duly  carried,  with  applause. 

The  proceedings  closed. 


cannot  regard  as  altogether  just  in  its  incidence,  is  imposed 
upon  us,  we  must  reconcile  ourselves  to  a  temporarily  limited 
dividend  distribution  with  the  confidence  that  money  conserved 
by  the  company  and  utilised  to  increase  planted  areas  or  write 
down  capital  expenditure,  will  in  the  not  distant  future  bring 
forth  profits  both  in  the  shape  of  improving  income,  and  appre- 
ciation in  the  value  of  our  holdings,  because  capable  judges  now 
recognise  as  one  of  the  soundest  and  most  reliable  amongst  in- 
dustrial securities  the  great  rubber-planting  enterprise  which 
has  now  spread  throughout  our  Eastern  tropical  possessions,  but 
nowhere  gives  better  results  than  in  British  Malaya.  We  in 
this  company  are  fortunate  in  that  our  property  is  in  one  of  the 
most  fertile  districts  of  the  State  of  Perak,  closely  adjacent  to 
estates  where  yields  of  400  lbs.  to  500  lbs.  per  acre  are  being 
obtained,  and  with  continued  good  management,  and  possessed 
as  we  are  of  adequate  funds  to  bring  more  land  to  the  producing 
stage,  we  may  fairly  and  reasonably  anticipate  an  increasingly 
satisfactory  return. 

Mr.  F.  W.  Tazewell  seconded  the  resolution,  which  was 
unanimously  adopted,  and  the  Chairman  announced  that  the 
directors  proposed  to  pay  on  April  4  an  interim  liividend  on 
account  of  the  current  financial  year  at  the  rate  of  2J  per  cent., 
less  income-tax. 


BROADWATER    RUBBER    ESTATE. 

The  sixth  annual  general  meeting  of  the  Broadwater  Rubber 
Estate  Co.,  T,td.,  was  held  on  Wednesday,  at  23,  Suffolk  Street, 
Pall  Mall,  S.W.,  Mr.  G.  St.  Lawrence  Mowbray,  chairman  of 
the  company,  presiding. 

Mr.  F.  N.  Varney,  representing  the  Secretaries  (the  Indo- 
Malay  Colonial  Agency,  Ltd.),  having  read  the  notice  convening 
the  meeting  and  the  report  of  the  auditors, 

The  Chairman  said  :  The  yield  from  the  small  area  of  rubber 
in  tapping  was   16,23^  lbs.,  against  an  estimate  of   15,000   lbs., 
and  despite  a  fall  in  the  price  in  the  latter  part  of  the  year  aa 
average  of  2s.   3|d.   per  lb.   was    obtained    at    Singapore    and 
Penang,    while    the   cost,    including   freight    and    sale   charges, 
amounted  to  just  over   is.    i^d.   per  lb.     Considering  that   the 
trees  in  tapping  only  average  six  years  old,  the  yield  of  230  lbs. 
per  acre  was  very  satisfactory,   and  on  the  average  numoer  of 
trees  tapped  gives  an  average  of  about  2j^  lbs.  per  tree.     For  the 
current  year  we  have  harvested  17,154  lbs.  in  eight  months  to 
the  end  of  February,  and  we  anticipate  a  crop  of  25,000   lbs. 
Development  expenditure  on  the  young  area  remained  at  about 
the  same   rate   as  in  the  previous   year,   and  our  visiting  agent 
and  manager  both  report  favourably  on  the  progress  and  future 
prospects.     The  smallness  of  our  estate  is  its  greatest  disadvan- 
tage,   and   this  we   have   endeavoured   to  remedy   by    obtaining 
additional  land,  but  the  recent  war-time  legislative  enactment  of 
the  Malay  States  Government  prohibiting  the  sale  and  transfer 
of  land  prevents  us  at  present  from  realising  our  hopes  in  that 
direction.     We  have,  therefore,  since  the  date  of  the  balance- 
sheet  added  to  our  investments  in  shares  of  other  rubber  pl.mt- 
ing  companies,  and  have  no  reason  to  be  dissatisfied  with  the 
result  so  far  attained.     Shortage  of  shipping,  and  the  very  com- 
mendable desire  of  the  authorities  to  give  priority  at  present  to 
imports  of  essential  food  supplies  have  led  to  the  imposition  of  a 
temporary  ban  on  rubber  shipments  from  Malaya,  which  places 
upon  the  planting   companies  there  the  onus  of  storing   their 
rucber    output    and    therefore    of    providing    finance   for    their 
estates  to  an  increased  degree  pending  the  deferred  realisation 
of  crops.  _  These  circumstances  have  brought  about  a  reduction 
in  the  price  of  rubber  in  the  East,  of  which   astute  American 
purchasing  agents  took  full  advantage,  and  some  alarmists  and 
pessimists  in  this  country  have  utilised  the  opportunity  to  arti- 
ficially depress  prices.     Such  a  position,  in  my  opinion,  could 
not    endure    for    long,    and    already   a    recovery    in   commodity 
prices  has  occurred  not   only   in  London,  but   in   the   Eastern 
rubber  market.     It  hardly  needs  an  optimist  to  point  out  that 
rubber  producing  is  one  of  the  vital  industries  of  present-day 
life,  and  though  less  than  a  decade  ago  plantation  rubber  was 
looked  upon  askance  by  many  prudent  men,   its  supremacy   is 
to-day  unchallenged,  its  production  has  so  far  outdistanced  the 
most  sanguine  views  of  experts,  and  the  much  advertised  syn- 
thetic products  that  were  to  drive  it  off  the  market  are  still  en- 
veiled  with  the  mists  of  conjecture. 

Great  as  the  war's  demands  have  been  for  rubber,  those  of  the 
future  when  pe.ice  is  restored,  and  the  reconstruction  of  the  de- 
vastated territories  is  taken  in  hand,  must  be  enormously  greater 
The  limited  amount  of  new  planting  effected  in  the  past  four 
years  points  inevitably  to  a  lessened  ratio  of  increase  in  rubber 
output,  and  it  need  occasion  no  surprise  if  instead  of  the  over- 
plus which  some  have  spoken  of,  there  should  in  a  year  of  two 
after  the  Termination  oTIhc  war  prove  to  be  as  great  a  deficit  in 
rubber  as  accompanied,  or  ciused,  the  memorable  rubber  boom  of 
iqio.  With  such  a  prospect  beforco  us,  and  realising  that  finan- 
cial restrictions  to-day  prevent  the  raising  of  capital  for  develop- 
ment,  while  heavy  taxation,  some  of   which  rubber   companies 


GULA-KALUMPONG    RUBBER. 

The  ordinary  annual  general  meeting  of  the  Gula-Kalnmpong 
Rubber  Estates,  Ltd.,  was  held  on  Tuesday  at  the  Cannon 
Street  Hotel,  E.C.,  Mr.  Frederick  Anderson  (chairman  of  the 
company)  presiding. 

The  representative  of  the  secretaries  (Messrs.  Ilbert  Anderson 
and  Co.)  having  read  the  notice  convening  the  meeting  and  the 
report  of  the  auditors. 

The  Chairman  said  :   As  reeards  the  working  of  the  estate, 
the  output  of  rubber  was  about  2^  per  cent,  below  the  estimate 
given  last  year.     For  the  first  six  months  the  yield  was  well 
ahead    of    the   estimate,    but   owing    to    the    restricted    shipping 
facilities  to  this  country  we  have  agreed  to  reduce  our  output 
to  80  per  cent,  of  last  year's  crop,  in  accordance  with  the  plan 
of   the   Rubber  Growers'   Association.     We  have  continued  the 
policy  of  thinning  out  the  rubber  areas,  and  over   20,000  trees 
were  taken  out   last   year.     In   all  fields   where  this   has   been 
done  for  any  length  of  time  our  manager  reports  improvement 
in  growth  and  better  renewal  of  bark.     The  work  will  be  con- 
tinued this  year.     The  area  under  coconuts  has  been  increased 
by  443i  acres,  which  brings  the  total  up  to  3.320  acres.     The 
average  acreage  in  bearing  was  a  little  under   1,500  acres,  of 
which  25  per  cent,  were  in  their  first  year  of  production.     W'e 
have  sold   rather   more  than  half  the  crop  of  copra  at  prices 
which  give  an  average  return  of  between  £6  and  £-  an  acre. 
The  scarcity  of  tonnage  has  been  a  great  handicap,  and  there 
is    no    immediate   prospect   of   relief   in   that   respect,   but   when 
shipping  facilities  again  become  available  I  think  we  can  look 
forward  to  a  good  market  for  copra,  as  the  public  have  begun 
to   realise   that  the   best   quality  of  margarine,   which   is   made 
from  copra,  is  twice  as  good  as  inferior  butter,  and  costs  about 
half.     We   propose   to   extend    the   area   under   coconuts   by    an- 
other 250  acres  this  yeat  if  labour   is  available.     If  two  acres 
of  coconuts  will  produce  £  14  of  profit,  and  each  acre  of  rubber 
the  same  (rather  less  than  gd.  a  lb.  on  400  lbs.),  there  is  no  need 
for   anxiety  as   to  the  future,    if   one   takes  a  view  extending 
beyond  that  immediately  before  us.     On  the  basis  of  two  acres 
of  coconuts  being  equal  to  one  of  rubber,  you  have  a  permanent 
cultivation   equivalent   to  6,077   acres   of   rubber,   which   on   the 
issued  capital  have  a  book  value  to-day  of  £71,  per  acre,  which 
can  easily  be   further   reduced.     You   will  see  from   the  report 
that  the  average  sale  price  is  2s.  53d.,  which  is  partly  owing  to 
forward    sales.        Owing    to    the    uncertainty    of    tonnage    we 
thought  it   prudent  to  curtail   forward  commitments,  and   this 
difficulty    is'  now    greater    than    ever.     "  All-in "    cost,    includ- 
ing  war  charges,  has   risen   to   is.  o|d.   per   lb.,   which   leaves 
us  with  a  nett  profit  of  is.  4jd.     The  stock  of  220,000  odd  lbs. 
of   rubber   unsold   when   the   accounts  were  made  up  has  been 
brought  into  the  account  at  a  valuation  of  is.  3d.  per  lb.  gross, 
which  is  not  very  much  above  cost  price  when  higher  freight 
and  war  risk  insurance  are  taken  into  account.     Similarly  316 
tons  of  copra  are  brought   in   at  cost   price.     The  total   profit 
of  ^,'85,000  odd   enables  us  to  pay  the  same  dividend   for  the 
whole  year  as  in  1916,  putting  ;f  10,000  to  reserve  and  slightly 
increasing  the  balance  carried  forward.     As   regards  prospects 
for   igi8,  it  has  to  be  borne  in  mind  that  we  have  agreed  to 
curtail  production  by  20  per  cent.,  and  that  cost  of  production 
per  lb.  will  necessarily  be  higher,  as   standing  charges,   which 
are  not  affected  by  curtailment  of  output,  will  be  spread  over 
a  smaller  crop,  added  to  which  cost  of  all  materials  is  higher, 
and  also  shipping  charges  to  America.     Estimates  at  the  present 
stage  are  of  little  value,  but  unless  conditions  change  it  w^ould 
be  prudent  to  make  up  our  minds  that,  compared  with  the  last 
three  years,   1918  bids  fair  to  be  a  lean  year.     In  this  respect 
we  suffer  in  common  with  the  whole  industry.     It  remains  to 
be  seen,  however,  whether  with  reduced  output  and  higher  cost 
of  production  rubber  will  continue  to  be  the  only  important  raw 
material  which  has  a  depreciated  value,  amidst  a  general  appre- 
ciation of  all  other  commodities. 

Mr.  E.  L.  Hamilton  seconded  the  motion,  which  was  unani- 
mously adopted. 


March  30,   191 8. 


tTbe  Jnveetors'  IReview* 


331 


INDIAN  RAILWAYS. 


Name. 


GRO&S  TRAFFIC  FOR   WKBK. 


Week 
ending 


Amount 


n.  or  dec 

on  last 

vear. 


GROSS  TRAFFIC  TO  DATE. 


Assam  BeDKal       .. 

Barsi 

BenRal&N.-W.     .. 
Bengal  Nagpar 
Bombay,  Baroda  .. 
B  rma  ..        .. 

Uelbi  Umballa  .. 
East  Indian..  .. 
Gt. Indian  Penin.  .. 
Lucknow-Bareilly. . 
Mddras      and       S. 

Mahratia  .. 
Nizam's  Qd.  (Broad) 
,,        „     (Metre) 
Robilkund  and 

Kumaon  ., 
South  Indian 


Ian. 

25 

Keb. 

2 

Ian. 

id 

heb. 

t 

Mar. 

q 

Ian. 

a6 

Mar. 

16 

^^ 

16 

,, 

16 

ian. 

16 

Feb. 

2 

Jan. 

iq 

■1 

19 

Feb. 

76 

2 

Rs. 
i6«,«i3 

28,700 
5,01,  00 
10,48,000 
15,39,000 
5,5''.o3l 
91,400 

22,34,000 

23.95,700 
94,359 


Rs. 

+     50.152 

—  29,600 

—  71.130 
+        I. 000  j 

—  2.46,00c 
+  44,846 
+     I4,5i0 

—  3,40,000 

+  2,ir,200 

—  7,216 


10,50  000     4- 

1,40,618  I— 
1,00,:  58  I— 

36,701    - 
0.44,344  1  + 


65  < 
12,421 
10,551 

2,29-. 
61,586 


Amount 


In.  or  dec. 
on  last 
year. 


Dublin  United 
Hastings  and  Dlst.. 
Ule  ol  Thanet 
Lancishire  United.. 
Provincial    . . 
Yorks.  (Wst.  RHnK.) 


t  April  I.  t  October  i. 

TRAMWAY  AND  OMNIBUS.— HOME. 


Rs. 

23.06,302 
7,03,500 

63.91.753 
4.53.96.932 
3,34,' 8,000 
1.74.17,738 

21,18,486 

5,58,51,000 

5,12,95,454 

8,20,169 

1,79,97,643 
20,05,6^.4 
13,08,10a 

700,330 
1,15,67,8  J4 


Ks. 

+    i,57,o6t 

—  2,10,800 

—  6,60,312 
+  36,02,366 

—  3,66,000 

fT.O^l 

+  2,80,875 
+  14,38,000 
+  3', 39,245 
*■       «3."75 

+    9.78,769 

—  5,002 
+         8,67t 

+  .  57,477 
t-     8,53,4C2 


*  From  Oct, 


f  From  Jan. 


TBAMWAY  AND  OMNIBUS— FORbiGN   AND  COLONIAL. 


II 
I 


Alabama  Power    . , 
An^io-Argentine    . 
Auckland  Electric. 
Brazilian  Traction 
Brisbane  Eleo.  Inv. 
British  Columbia  .. 
B.A.  Lacroze 
Burmab  Electric  , , 
Calcutta 
Carthagena  and 

Herrerias  .. 
Cordoba  Light 

P.  &T 

Hongkong   , . 
La  Plata 

Lima 

MaHras  Electric   . . 
Manila  Eltctiio.... 
Mexico        ., 
Rangoon 

Singapore  Electric 
Toronto 

United  of  Monte  V. 
Vera  Cruz    ., 
Winnipeg    . , 


Jan. 
Mar. 
Oct. 
Jan. 
Oct. 
Dec. 
Fdt. 

Mar. 

Feb. 


Jan. 
19 
6 

Feb. 
Mar.  15c 
Aug.  8 
Nov.   i 
Feb.    J 
Dec.  20 
Nov.    j 
Feb. 

c.   i 
Nov. 


£ 

129,919 

56,612 

22,308 

M3, 696,000 

33.580 

»167.333 
„  34,397 
Rs.22  9S5 
Rs.72,275 

4.031 

12.845 

12,272 

4.711 

41  913 

Rs.  31.530 

6546; 

$215,25^ 

5  662 

$13,201 

»42',556 

34,573 

51,0  0 

t86,88i> 


£ 

+      19,173 
+       3,78 
+  880 

—  M  306,000 
+  820 
+     t30.9'>7 

—  1,580 
+  Rsi  73 
+   Rs.7,100 

+  808 

+  4'3 

—  « 1,368 
+  396 
+      7.685 

+  Rs. 5.363 
+        4,667 

—  $108,609 


1.057 
»I.I73 
♦  8.753 

2,269 


-     $14,744 


Ms 


f 
129.919 

594,671 

92,118 

M3,6^6,coo 

328,420 

$599,797 

303,775 

157.522 

RS7.93,946 

8,042 

1 34. 966 

»35.8''3 

48,962 

85,449 

Rs.i88,724 

547,492 

$3,193,106 

11.023 

$668,805 

*5,032.  76 

135,674 

618,000 

$748,976 


^  19,173 
+  38,937 
+         7,832 

—  M3o6,ooo 

—  2, coo 
+     $60,091 

1,239 
+  Rs.  217 
+  Rs.42,2g9 

+  837 

■*■■        641 

-  $1,705 

-  1  873 
+  14,380 
4-  Rs. 20,620 

T  70,625 

—  $197,227 

+  l,7''5 

+  $11,901 

+  $239,133 

+  lu,201 

-  $317,782 


6  18  days.       •  From  Jan.  I       J  Neit.       a  From  July  i.  .(  Two  weeks. 
FOREIGN    RAILWAYS. 


Alcoyand  Gandia . . 

Antofagasta    (Chili) 

Aratico  ..        ., 

Argentine  N.E. 

Bilbao  R,  and  Cania 

Bolivar 

Brazil 

Brazil  Gt.  Southern 

B.  Ayres  &   Pacific 

Do.  Central     .. 

Do.Gi.South'n 

Do,  Western 
Central  Argentine.. 
C.Ur'g'ayof  Mte  V. 

Do.  East'n  Ex. 

Do.Norlh'nEi. 

Do.  West'n  Ex. 
Cordoba  Central  . . 
Costa  Rica  . 
Cuban  Central 
Dorada  Extension. . 
Egyptian  Delta     .. 
Entre  Rios  ,. 
French  Same  Fi  .. 
Gt.  Soutti.  of  bpain 
Gt.  West,  of  Brazil.. 
Havana  Central     .. 
Inter,  ot  C.  Amer... 
La  Guairaand  Car. 
Leopoldina,. 
Midland  Uruguay . . 
Mogyana 

N.W.  of  Uruguay  .. 
Nitrate 

Paraguay  Central  .. 
Paulista 

Peruvian  Corpn  . . 
Salvador 

State  of  Bahia  S.W. 
S.  fauio  ttiriiziiiiin} 
Sorocabaaa.. 

Taital 

United  of  Havana.. 
West'n  of  Havana.. 
2afraand  Himiva. . 


Mar. 

0 

,, 

17 

Ian. 

Mar. 

16 

Feb. 

♦ 

Nov. 

4 

* 

Mar. 

23 

Ian. 

Mar. 

17 

,, 

17 

,, 

21 

,, 

16 

,, 

16 

i6 

16 

,, 

16 

Ian. 

10 

Mar. 

ifi 

Feb. 

* 

,, 

10 

Mar. 

16 

Jan. 

Mar. 

Q 

,, 

16 

., 

16 

Feb. 

c* 

Mar. 

Ifi 

Feb. 

Nov. 

Feb. 

Mar. 

15 

, 

16 

Nov. 

* 

Feb. 

* 

" 

23 

Mar. 

17 

IJer. 

* 

Feb. 

* 

Mar. 

16 

„ 

16 

Ian. 

♦ 

Ps. 


*  Months,  t  From  Jan 


£ 

9,00 ' 

48,615 

14.000 

10,300 

2953 

9.500 

M4,746,o.,o 

.Vli.,.44.050 

155,000 

29,421 

153IMO 

76,000 

i8t  o.Xi 

21  961 

6,214 

3,704 
2,848 

40,000 

3,996 

36,218 
7,400 
8,720 

21,6:0 
147,488 
I'*.  32  015 

21,200 

io,Hai 
24,247 
5,500 
29,96s 
10,000 

M2,242,0oo 

»23,0O0 

34,871 

3,080 

M3, 506,000 

£1925,410 

«i.II2 

M76,oo  I 
„  25,797 
M2,io;,ooo 
22,29s 
93,769 
12,838 
10923 


£ 

—  2,000 

+  ,,14|7I0 

+  2,000 

+  3.300 

+  .    6i5 
639 
+  M66i,3  9 

1-  M850 

+  75,000 

+  8,949 

+  33,000 

+  33,000 

+  88,000 

+  8,2JI 

—  617 

+       566 


9,020 
2,749 
1,579 
1,400 
',433 
8,OjO 
55.7>3 
-Ps68,8q3 
8,300 
2,946 
9,386 
3,500 
5,886 
3,280 
+  M  222,440 

+  $1,202 
+  2,2   8 

+  330 

+  M  589,750 
+    880,640 

-  $1,0)5 

-  M25,ooo 
+  0,.  06 
+  M224.206 
+  5,348 
+  31.307 
+  4.562 
+  782 


i  I    £ 

Ps.  89,900  I  Ps. 16,170 

425,150  ^+       20,015 

14.000  1+  2,Ocio 

308,400  ;+    63,298 
8,062 1  -       43.3 

8j,236  I  +        19,230 
M  45353000  U-M5238971 


"471,527 

3,26s,OiO 

.75607 

3,990,705 

1,703,000 

3,917,200 

668,057 

181,986 

ll6,43J 

81,203 

1,077, gSj 

81,054 

668,096 

15,700 

249,329 

544,200 

147,488 

Hs.305  276 

210,100 

3l4,2iO 

47.671 

13.750 

355,719 

104,920 

M  21669, cyx) 

$212,0^5 

142,664 

106  310 

V)  30654,000 

88,203,030 

$5 ',556 

Migo,ooo 

384,957 

Ni 16,958 

20,,  286 

1 ,938,840 

307.301 

10,923 


1     tFromJu.'yi.    c  Nett.    6  15  days. 

COLONIAL  RAILWAYS. 


M5 1,057 

—  29,000 
+       4,155 

*^      206,549 

—  119,000 

—  126,200 

+  187,772 

+  8.003 

+  30,171 

+  11,821 

—  5.3''0 

—  66,253 
*■      131.447 

—  2,300 
+  58,753 
+  109,500 
•••  55,713 
-Ps.675164 
+  58,250 
+  61,364 

—  17.585 

—  4.250 
+  94.238 
4-  4,110 
4-  M247,7I2 
+  819.748 
+  1S.174 
+  13,860 
4Ml456l38 
+  8917,638 

—  $6,350 

—  M33,ooo 
+  ".^9,775 
+  M 1735205 
+  56  904 
+  478,796 
+  83,683 
+  782 


a  10  days. 


Beira 

Canadian  Northern 
Canadian  Pacific   .. 
Gt.Trk.  Main  Line 
Gr.  Trk.  Western. 
Detroit  G.  H.  &  M 
GrTkPac  Prairie  Sc 
MastionalanJ 
Mid.  of  Westn.  Aus 
New  Cape  Central. . 
Rhodesia 


Nov 

•c 

Mar 

21 

,, 

21 

,, 

21 

,, 

21 

,, 

21 

,, 

14 

Nov 

• 

Ian 

• 

Feb. 

2 

Dec 

♦c 

£ 

56,698 
$788,  00 

»2,84'l,<00 

201,366 
3t.78' 
13.346 
25.524 
56,698 
9.296 
2,521 
79,220 


£ 

—  I,4''6 
'  $69.  00 
+  $198,000 
+  23,674 
5,532 


Pi 


1,580 

5,196 

1,486 

790 

6,-2 

2,472 


£ 

124,329 

»29,450,70O 

$28,068,000 

1,81  .,744 

3l5,»70 

I2.,6j7 

231,614 
56,698 

52,-i7 
n,286 
269,405 


Momh».        J  July  j.        t  Jan.  i.      t  Fcom  Oct.  i 


£^ 
+  „    8.374 

+  8  01,600 
+  $1065,000 

—  113,290 

—  11,757 

-  4,347 

f       64,267 

-  1,486 
+  4,005 
+      1,356 

+       11,925 


MONTHLY    STATEMENTS. 


NgtT 

fcARHIMOS  FOR   MONTH. 

NBTT  BARHINOSTODATK. 

NAUR 

Month. 

Amount. 

In.  or  Dec. 
on  last  year 

li 

Amount. 

In.  Of  Deo. 
on  last  year 

Dots. 

Dois. 

Dots 

Dola. . 

Atchison  T.  &  S.  Fe 

Dec. 

3.543.0'0 

f    240,000 

12 

47.829.000 

—  t,  248.000 
+     607,000 

Atlantic  Coast  Line 

,, 

2,036,000 

+    420.000 

12 

12,014,000 

Baltimore  4  Ohio  . . 

,, 

1,851.000 

—  1,165.000 

12 

30,588.000 

-  3,425,000 

Canadian  Northern 

„ 

65,300 

—   758.500 

6 

3.3^5.'Oo 

Canadian  Pacific   . . 

Jan. 

1,168,000 

-1,263,000 

I 

i,i6'i,oco 

—  I,26j  000 

Chesapeake  &  Ohio 

OfcC. 

I,2j3,000 

+      44.000 

12 

14,099,000 

Chicago  81  N.W.    .. 

„ 

2,711,000 

+      10,000 

12 

27,015,000 

—  3,634,000 

Chicago  Burl.  &  Q. 

Nov. 

1,642,000 

— 2,031,000 

II 

31,281,000 

—  3,956  000 

Chicago  G.W. 

Dec. 

388,000 

—     11,000 

12 

^,876,000 

—  1,006,000 

Chicago  Mil.  4  8. P. 

,, 

892,000 

—  1,726,000 

12 

22,026,00c 

—  9338.000 

Chicago,  Rock  L&P. 

,, 

1,362,000 

—   419,000 

12 

I7,S2},O00 

Colorado  &8oulherii 

Nov. 

444.000 

—    233000 

II 

5  320000 

4-      370,000 

Dec. 

363.000 
4,000 

h  311,000 
—   509,000 

6 
12 

Delaware  &  Hud.  .. 

5.606.000 

Denver  4  Rio  Gran. 

,, 

296,000 

—    424.010 

12 

7,4.8,000 

—  1.963,060 

Ecie 

,, 

507.000 

+  1,848,000 

12 

10,538,000 

—  5,277,000 

Gr.Tr.  Main  Line.. 

Nov. 

£86,200 

-£128,600 

II 

£1,907,300 

—  £627,900 

Grand  Trunk  Westn 
DeiroitG.II.&Mil. 

ti 

6  ^15.650 

—  fi,95o 

—  f,i,io 

II 
11 

£23.200 
£67,700 

-  £139.050 

—  £99.900 

Gt.  Northern 

Dec. 

1,165,000 

—1,401,000 

12 

22,9^7,000 

—  6,179,000 

Illinois  Central 

Nov. 

1,466,000 

—   409,000 

II 

17,538,000 

+  2,590,000 

Kansas  City  Southn. 
Lehigh  Valley 

Dec. 

294,  OOf* 

—      8d,ooo 

12 

4.495.000 

Nov. 

628,000 

—   376,000 

II 

9,240,000 

—  2,410,000 

Louisville&Nashvl. 

,, 

1,296000 

—    178.000 

II 

16,949,000 

—    836,000 

Minn.S.P.  (Soo)!  .. 

jec. 

357,000 

—   297,000 

12 

9,331,000 

—  3,648,000 

Miss.  K.  4  Texas  . 

,, 

9iz,ooo 

+    126,000 

12 

8,305,000 

Missouri  Pacific   .. 

Nov. 

1,690,000 

+    321,000 

5 

9  425,000 

+■  1,920,000 

New  York  Cent. &H 

,j 

2,939-000 

—1,742,000 

II 

45,049.000 

—  13335.000 

N.Y.N. Haven4H. 

,, 

1,469,000 

—  60S,  00 

11 

19,597.000 

—  1,665,000 

New  York  Ont.&W 

Dec. 

111,000 

—     26  000 

12 

2,228.000 

Norfolk  4  Western. 

^j 

1,28    ,000 

—   200.000 

12 

19,654,00c 

—  3,808,000 

Northern  Pacific   .. 

,, 

1,414,000 

—1,832,000 

12 

27,423,000 

—  4,110,000 

Pennsylvania    Easi 

and  West  Lines.. 

|an. 

5,940,000 

-1 1072000 

1 

5,940,000 

—  11072,000 

Phil,  and  Reading  . . 

Nov. 

1, 1-64, or  0 

—1,199,202 

II 

14,877,0.0 

—  6,626,000 

577.033 

1,304,000 

t-       5,826 

+     35i-oo^ 

9,006  000 
8,569,000 

+  212,860 
+  1,093.000 

bt.  Louis  &  Sau  F. . 

]\ 

S 

Seaboard  Air  Line.. 

Dec. 

673,000 

—     206,000 

12 

8.628,000 

—      24,000 

Soutuern      .. 

2.953,000 

+    241,000 

6 

14.753.000 

+  2,098,000 

Southern  Pacific   .. 

Nov. 

4,465,000 

—1,038,000 

II 

55.577,000 

+  7.255.oe« 

Union  Pacific 

Dec. 

3,247.000 

+     197,000 

12 

42,942,000 

—  2,115,000 

Wabash 

" 

316,000 

— i,0i6,ooo 

12 

I2,c03,ooo  —     844,000 

§  Includes  Wisconsin  Central.    *  Gross  earnings,    t  Surplus,    i?  Deficit. 

Copies  of  THE  INVESTORS'   REVIEW  can 
be  obtained  in  Paris  at 

Messrs.  W.  H.  Smith  &  Son's, 
248.  Rue  de  Rivoli. 


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72,  COLEMAN  STREET,  LONDON,  E.G. 


Telephone : 
3436  London  Wall. 


Telegram. : 
"Finantimo,  London. 


333 


TLbc  Jnvestors'  1Rev(evp. 


March  30,  1918. 


TrMjarv  Cfuimberi, 


22nd  March,  1918. 


DEFENCE  OF  THE  REALM  REGULATIONS. 

THE    TREASURY    (SECURITIES)    ORDER,     1918    (No.     i). 


Whereat  the  Treasury  hare  power  under  Resulatlons  7c,  70,  and  7E,  of 
the  Defence  of  the  Realm  RegTilatlont  (Inserted  in  those  regulations  by 
An  Order  in  Council  dated  the  twenty-fourth  day  of  January,  nineteen 
hundred  and  teventeen)  to  apply  Refful&tion  7c  to  certain  securities  and 
10  take  possession  or  require  delivery  of  the  securities  to  which  the 
regulation  It  for  the  time  being  applicable  subject  to  and  in  accordance 
with  the  provisions  of  the  regulation : 

And  whereas  the  Treasury  are  of  opinion  that  for  the  purpose  of 
•trengtheniog  the  financial  position  of  the  country  it  is  expedient  that 
Regulation  7c  should  be  applied  to  Bonds  of  the  Uruguay  3^  per  cent, 
consolidated  loan,  which  sectu'ities  are  in  this  Order  referred  to  as 
"  the  Uruguayan  bonds." 

Now,  therefore,  in  pursuance  of  their  powers  under  the  said  regula< 
tloos,  and  of  all  other  powers  enabling  them  in  that  behalf,  the  Treasury 
hereby  order  as  follows : — 

I.  Regulation  7c  is  hereby  applied  to  the  Uruguayan  bonds. 

•.  (i)  Any  such  bonds  shall  be  delivered  to  the  Treasury  on  or  before 
the  aand  day  of  April,  nineteen  hundred  and  eighteen,  and  for  that  pur- 
pose any  person  having  possession  of  any  such  bonds  shall,  on  or  before 
that  date,  deliver  the  bonds  to  the  American  Dollar  Securities  Committee 
at  the  National  Debt  Office,  19,  Old  Jewry,  London,  E.G.  a,  together 
with  a  delivery  form  duly  completed.  Copies  of  delivery  forms  can  be 
obtained  on  application  to  the  Committee. 

Any  such  person  shall  also  deliver  to  the  Treasury  any  documents  of 
title  relating  to  the  Bonds  which  may  1>e  in  his  possession  or  at  his 
disposal. 

The  delivery  shall  be  subject  to  the  right  of  the  Treasury  to  return 
them  at  any  time  on  giving  three  months'  notice,  or  to  take  full  posses- 
sion, in  accordance  wiTh  the  terms  of  this  Order. 

(a)  Any  owner  of  any  of  the  Uruguayan  bonds  and  any  person  who  has 
power  to  'fisposo  of  or  sell  any  of  the  Uruguayan  bonds  or  receives  on 
his  own  l>ehalf  or  on  behalf  of  any  other  person  the  dividends  or  income 
of  any  of  the  Uruguayan  bonds  or  has  any  interest  in  any  of  the 
Uruguayan  bonds  shall  (M  the  bonds  are  not  jn  his  possession)  on  or 
before  the  aand  day  of  April,  1918,  give  to  the  American  Dollar  Securities 
Committee  full  particulars  of  the  bonds  and  of  his  position  in  relation 
thereto,  delivering  at  the  same  time  to  the  Committee  any  documents  of 
title  relating  to  the  bonds  which  may  be  in  his  possession  or  at  his  dis- 
posal and  comply  with  any  directions  given  to  him  by  the  Committee  for 
completing  the  delivery  of  those  bonds. 

(3)  While  the  bonds  are  under  deposit  the  person  whose  name  is  entered 
for  the  time  being  on  the  Treasury  Register  will  receive  from  the  Trea- 
•ury  all  Interest  and  dividends  paid  in  respect  of  them,  and  also  by  way 
of  consideration  for  the  loan  a  payment  at  the  rate  of"  one-half  of  one 
per  cent,  per  annum  calculated  on  the  face  value  of  the  bonds.  Provided 
that  if  any  bonds  are  not  delivered  to  the  Treasury  within  the  time  re- 
quired by  this  Order  the  Treasury  will  not  be  bound  to  make  such  addi- 
tional payment  as  aforesaid,  but  may  grant  such  additional  allowances  as 
they  think  just  in  the  circumstances,  but  nothing  in  this  proviso  shall 
prejudice  the  recovery  of  any  penalty  which  may  have  been  Incurred. 

(4)  The  boqds  or  other  bonds  of  the  same  description  and  the  same 
nominal  amount  may  be  returned  at  any  time  by  the  Treasury*  on  the 
latter  giving  three  calendar  months'  notice  in  writing  of  their  intention 
to  do  so. 

(5)  Whe>  bonds  have  been  delivered  to  the  Treasury  under  this  Order 
the  bonds  will  be  entered  in  a  special  Register  kept  by  the  Treasury  for 
the  purpose,  and  a  certificate  of  entry  in  this  Register  will  be  issued. 
The  title  of  bonds  entered  in  the  Treasury  Register  may  be  transferred 
upon  that  Register  by  deed  in  the  ordinary  way.  Transfer  deeds  for 
transfers  in  the  Treasury  Register  will  be  free  of  stamp  duty  and  regis- 
tration fee. 

(6)  Arrangements  have  been  made  by  the  Stock  Exchange  Committee  for 
dealings  on  the  Stock  Exchange  in  the  deposit  certificates  of  bonds  de- 
posited under  this  Order. 

(7)  The  interest  on  deposited  bonds,  together  with  the  additional  pay- 
ment at  the  rate  of  one-half  of  one  per  cent,  per  annum,  will  be  paid  by 
warrant,  as  soon  as  interest  has  been  received  by  the  Treasury.  Interest 
wilt  be  paid  in  sterling  in  London. 

For  convenience  of  payment,  a  full  quarter-year's  additional  payment 
(vii.,  i-8th  per  cent.)  will  be  added  to  the  first  interest  payment,  and  on 
the  termination  of  the  loan  the  amount  due  from  the  actual  date  of  de- 
posit to  the  date  of  return  will  be  calculated,  and  any  overpayment  or 
underpayment  will  be  adjusted  when  the  return  is  effected. 

(8)  In  the  case  of  bonds  which  have  come  into  ownership  or  ceased  to  be 
exempted  or  excepted  after  the  date  of  this  Order,  this  Order  shall  have 
effect  as  though  there  were  substituted  for  the  aand  day  of  April,  1918,  a 
date  one  month  after  the  date  on  which  the  bonds  come  into  ownership, 
or  cease  to  be  exempted  or  excepted,  as  the  case  may  be. 

3.  (1)  If  full  ownership  is  subsequently  required  of  bonds  delivered  to 
the  Treasury  under  this  Order,  the  Treasury  will  pay  compensation 
through  the  American  Dollar  Securities  Committee  for  the  bonds  at  the 
r«t«  of  76}  per  cent. 

The  compensation  money  shall  be  paid  to  the  person  whose  name  is 
•atered  for  the  time  being  on  the  Treasury  Register  (whose  receipt,  to- 
gether with  delivery  of  the  Treasury  Deposit  Certificate,  shall  be  a  suft- 
cknt  discharge),  and  the  compensation  money  shall  be  subject  to  the  same 
tmsU.  charges,  liens,  rights,  and  eqtiitles  (if  any)  u  the  bonds  In  respect 
•f  which  it  is  paid. 


(a)  Where  bonds  dealt  with  under  this  Order  are  held  either  on  loan  or 
contango,  and  the  loan  or  contango  is  carried  over  under  the  scheme  for 
providing  Government  assistance  in  dealing  with  account  to  account 
loans  on  the  Stock  Exchange,  both  the  lender  (or  taker  in)  and  the  bor- 
rower (or  giver)  are  subject  to  the  terms  of  this  Order,  except  that  if  full 
ownership  is  subsequently  taken,  special  arrangements  will  be  made  by 
the  Treasury  for  postponing  the  payment  of  compensation  until  the  bonds 
cease  to  he  subject  to  the  scheme,  and  for  the  determination  of  the  com- 
pensation as  at  the  time  when  it  becomes  payable,  and  for  payment  to  be 
made  in  the  meantime  in  respect  of  the  income  of  the  bonds. 

4.  (i)  Bonds  are  excepted  from  the  operation  of  this  Order  if  It  is 
proved  to  the  satisfaction  of  the  Treasury — 

{a)  that  the  bonds  come  within  the  proviso  to  sub-section  (1)  of  Regu- 
lation 7c,  as  set  out  In  Part  I.  of  the  Schedule  to  this  Order ;  or 

{b)  that  the  bonds  have,  with  the  permission  in  writing  of  the  Ameri- 
can Dollar  Securities  Committee  given  at  the  time  of  purchase,  been 
purchased  since  the  a4th  day  of  January,  1917,  by  or  on  behalf  of  a 
person  not  ordinarily  resident  in  the  United  Kingdom  and  that  they 
remain   in  the  beneficial   ownership   of  such   person;    or 

{c)  that  the  bonds  are  securities  within  the  scope  of  paragraph  (a),  (^ 
or  {c)  of  Part  II.  of  the  Schedule  to  this  Order. 

(a)  Where  any  person  claims  that  the  bonds  are,  by  virtue  of  this  pro- 
vision, excepted  from  the  operation  of  this  Order,  he  (or  his  agent)  shall. 
on  or  before  the  lath  day  of  April,  1918,  give  notice  to  the  American 
Dollar  Securities  Committee,  stating  particulars  of  the  grounds  on  which 
his  claim  is  based;  and  if  on  adjudication  his  claim  is  not  sustained, 
this  Order  shall  take  effect  as  respects  those  bonds  as  if  the  seventh  day 
after  the  date  of  adjudication  (if  that  day  is  later  than  the  aand  day  of 
April,  1918)  were  substituted  for  the  sand  day  of  April,  1918. 

Provided  that  no  notice  shall  be  necessary  under  this  sub-section  in 
respect  of  any  bonds  where  notice  has  been  given  to  the  Custodian  as  to 
those  bonds  under  section  three  of  the  Trading  with  the  Enemy  Act,  1914, 
as  amended  by  any  other  Act,  and  no  penalty  shall  be  incurred  for  not 
giving  any  such  notice. 

5.  The  owner  of  any  bonds  to  which  ReguUtion  7c  of  the  Defence  of 
the  Realm  Regulations  is  for  the  time  being  applicable  (including  any 
person  who  has  power  to  dispose  of  or  sell  the  bonds,  or  has  the  custody 
of,  or  receives  on  his  own  behaJf,  or  on  behalf  of  any  other  person,  the 
income  from  the  bonds)  and  any  person  who  has  any  interest  in  any  such 
bonds  is  under  that  regulation  bound  to  take  all  steps  and  do  anything 
which  is  necessary  or  is  directed  by  the  Treasury  for  the  purpose  of  or 
in  connection  with  the  delivery  of  those  bonds  to  the  Treasurj' ;  and  if  be 
acts  in  contravention  of,  or  falls  to  comply  with,  that  provision,  he  is 
guilty  of  a  summary  offence  against  those  regulations. 

6.  The  Treasury  reserve  to  themselves  the  right  to  refuse,  either  in 
w^le  or  in  part,  any  offer  to  deposit  bonds  under  this  Order. 

7.  This  Order  may  be  cited  as  the  Treasury  (Securities)  Order.  1918,  No. 
I,  and  the  Treasury  (Securities)  Orders,  1917,  and  this  Order,  may  be  cited 
together  as  the  Treasury  (Sccmities)  Orders  1917  and  1918. 

Gi\'eD  under  our  hands  this  twenty-second  day  of  March,  1918. 

Jamei    Parktr. 
Jamet  F.   Hope. 
Two  of  the  Lords  Commissioners  of  His  Majesty's  Treasury. 


SCHEDULE. 
Part  I. 
/.  Proviso  to  sab-section  (t)  of  ReguUtion  7c. 

Provided  that  no  such  Order  shall  apply  to  any  securitin  at  to  whioli 
the  Treasury  are  satisfied  that  on  the  twenty-fourth  day  of  January,  nine- 
teeu  hundred  and  seventeen,  they  were  beneficially  owned  by  a  person  not 
ordinarily  resident  in  the  United  Kingdom  and  that  they  remain  so  owned. 

Part  II. 

{a)  Securities  which  are  held,  In  any  country  outside  the  United  King- 
dom, by  persons  who  are  not  domiciled  in  the  United  Kingdom,  or  by 
trustees  who  are  prevented  by  the  laws  '^f  such  other  country  or  by  the 
terms  of  their  trust  from  placing  the  securities  at  the  disposal  of  the 
Treasury,  and  are  not  entitled  to  the  benefit  of  any  indemnity  conferred 
by  Act  of  Parliament  in  respect  of  the  contravention  of  those  terms,  if 
the  securities  were  so  held  before  the  twenty-ninth  day  of  May,  nineteen 
hundred  and  sixteen,  or  where  such  securities  are  under  the  jurisdiction 
of  a  court  in  such  other  country,  and  it  would  be  contrary  to  the  laws  of 
such  other  country  to  place  such  securities  at  the  disposal  of  the 
Treasury  ; 

(i)  Securities  which  are  deposited  with  persons  outside  the  United 
Kingdom  as  a  security  for  a  loan  from  persons  outside  the  United  King- 
dom, if  they  were  so  deposited  or  made  security  before  the  iwcnty-mnth 
day  of  May,  nineteen  hundred  and  sixteen,  or  after  that  date  with  the 
approval  of  the  Treasury,  and  If  the  Treasury  are  satisfied  that  the 
securities  cannot  be  released  without  impairing  the  security  for  the  loan ; 

{c)  Securities  which  arc  proved  to  the  Special  Commissioners  of  Income 
Tax  to  be  held  by  any  company  or  persons  concerned  in  the  trade  or 
business  in  any  country  outside  the  United  Kingdom  as  a  condition  (im- 
posed in  that  country)  of  carrying  on  that  trade  or  business. 


PhstMl  by.th*  St.  Cwmiwts  P«e»«,  Ltd.,  Portuga'  Stre€t.  Kingtwiy,  London,  W.C,  for  the  Proprietor  of    i  he  Imvestom"  Review,  and  Published 
bv  Tub  PldPltiBTOK.  Korfalk  Honu.  Nartnk  fitrMt    Sh^oH    \rj  r  ,  _M.Mk  »«    .*.•  IN  «4fio 


tTbe 


gnpeetote'  IReview 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


Vol.  XL!.— No.  1,057.] 

NEW  SERIES^ 


rRegistered  as  al 
L    Newspaper.    J 


SATURDAY,  APRIL  6,  iqiS. 


[Price  6d. 


CONTENTS, 


Passing  Events :— National  War  Bond  Sales  —  General  Foch 
■  in  Supreme  Command  —  I.L.P.  Conference  —  Raising  the 
Age  for  Military  Service  —  Bank  of  Scotland  —  Chartered 
Bank  of  India  —  National  Bank  of  India  —  British  Italian 
Corporation  —  Maypole  Dairy  —  London  and  Thames 
Haven  Oil  Wharves  —  Canada  Steamship  Lines  —  British 
Cellulose  and  Chemical  Manufacturing  (Parent)  Co.  — 
Monterey  Railway,  Light  and  Power  —  Mysore  Gold 
Mining  Co.  —  Rio  Tinto  (pp.  335-8). 

Leading  Articles:— The  Revenue,  the  Debt,  and  the  Coming 
Budget  —  Canadian  Railway  Prospects  —  By-the-Way  War 
Notes  (pp.  338-41  and  347-8). 

Insurance  News  :  —Scottish  Provident  —  English  and  Scottish 
Law  Life  —  State  Control  of  Insurance  in  Russia  — 
Overseas  Marine  Co.  —  Wesleyan  and  General  —  Ocean 
Accident  and  Guarantee  (p.  341). 

Revenue  Returns  (p.  340). 

The  Week's  Stock  Markets  (pp.  345-6). 

London  Produce  Markets  (pp.  346-7). 

The  Week  in  Mines  (p    348). 

Dividends  Announced  (p.  349). 


Money  and  Credit  Notes  :— Squeeze  Followed  by  Ease  —  Bank 
Return  —  French  Government  Supporting  Rentes  — 
Another  Loan  from  the  United  States  —  Russian  Coupons 
to  be  Dishonoured  —  Franco-Russian  Committee  — 
Exchange  Fluctuat  ons —  Silver  (pp.  343-5). 


Mining    News  : — East    Pool 
Output    —     Princess 
Pengkalen  (p.  348-9). 

What  Balance  Sheets  Tell  :- 
Maclellan    —    W.    T. 
Electrical   Power    Co. 
(p.   350). 


and    Agar    —    Rhodesian    Mineral 
Estate    —     H.E.       Proprietary    — 


— Stewarts  and  Lloyds  —  P.  and  W. 

Glover    and    Co.    —    Clyde    Valley 

—  Penmans  —  Canada   Cement  Co. 


Company    Meeting  :- 
351). 


-The    Scottish     Provident     Institution  (p. 


Shipping  Output  Improving  (p.  349). 

Oilfields  Production  (p.  349). 

Tea,  Oil,  and  Rubber  (p.  350). 

Company  Results  in  Brief  (p.  350). 

Answers  to  Coi respondents  (p.  350). 

Traffic  Returns  (p.  352). 


I 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Ollice  i  15,  Gracechurch  Street,  London,  E.C.  S. 


Capital  Authorised 
Capital  Issued 
Capital  Paid  Up  ... 
Reserve  Fund 


£1,500,000 

1,125,000 

562,500 

600,000 


Brunches i 
INDIA.   BURMAH,  CEYLON.    STRAITS    SETTLEMENTS 
I  CHINA.    AND    PORT    LOUIS.    MAURITIUS. 

The  Bank  buyt  and  sells  Bills  of  Exchange,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  Kast,  on  terms  to  be  had  on  application. 

OEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  ourfl.ttnt  Aooounts  interest  is  allowed  at  2  percent,  per  annum  on 

daily  t>alances. 


ROYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  1727. 

PAID-UP  CAPITAL £2,000,000 

RBST  AND  UMDIVlDBD   PROFITS  914.B68 

DEPOSITS 26,177,865 

Head   Office:    ST.   ANDREW   SQUARE,  EDINBUKGH. 
Cashier  and  General  Manager,  A.  K.  Wrioht.        Secretary,  J.  B.  Adshead. 

London    Office:    3,    BISHOPSGATE,  E.C.  2. 
William  Wallace,  Manager.  Alex.  Dick,  Deputy-Manager. 

Glasgow  Office:     EXCHANGE  SQUARE. 
A.  Dennistoun,  Agent.  Thomas  Lillie,  Sub-Agent. 

167  Branches  throughout  Scotland. 
Banking  Business  of  every  description  transacted.  Accounts  opened  and  Agency 
business  undertaken  for  Foreign  ind  Colonial  Banks  and  oth«-r  financial  estab- 
lishments. Drafts,  Circular  Notes,  and  Letters  of  Credit  issued  — available 
throughout  the  world.  Cable  transfers  are  also  made.  Deposits  received  at 
interest  repayable  at  ooll  ot  at  notice.    Correspondence  invited. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special  Charter  0/  the   Imperial 
Japanese  Government,  1899. 


HEAD  OFFICE      - 


TAIPEH,   FORMOSA. 


BRANCHES— Tokio,  Kobe,  Osaka,  Araoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swatow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-Cbina,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


THE  YOKOHAMA   SPECIE   BANK,  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1880. 


Subscribed  Capital Yen  48,000,000 

Capital  Paid  Up Yen  42,000,000 

Reserve  Fund         ..        ..  ..    Yen  22,100,000 


Bombay. 

Calcutta. 

Changchun. 

Dairen  (Dalny). 

Fengtien  (Mukden). 

Hankow. 

Harbin. 


Head  Office:   YOKOHAMA. 

Branches  and  Agencies  at 


Honoluhi. 

Hong  Kong. 

Kobe. 

Los  Angeles. 

Lyons. 

Manila 

Nagasaki. 


Newchang. 
New  York. 
Osaka. 
Peking. 
Rang  'On. 
San  Francisco. 
Seattle. 


Shanghai. 

Shimonoseki. 

Singapore. 

Sydney. 

Tie  ni  sin. 

Tokyo. 

Tsinanfu. 

Tsingtau. 


The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  transacts  General  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtainci  on  applicaticn. 
London  Office:  7,  BISHOPSGATE.  E.C. 2. 

K.  TATSUMI.  Manager. 


I 
1 


HONGKONG   AND    SHANGHAI    BANKING    CORPORATION. 

Capital  (all  paid  up) 819,000,000 

Btarllng  Reserve,  hold  in  London  at  exchange  of  2s.  per  $  =  £1,S00,000  SIS.OOO.OOO 

Blly«r  Reserve »18,5CQ,000    833,100,000 

Reserve  Liability  of  Proprietors $15,000,000 

HEAD    OFFICe— HONGKONG.    Chief  Manager-N.    J.    STABB. 
BRANCHES    AND    AGENCIES :  — Amoy,    Bangkok,  Batavia,  Bombay,  Calcutta,  Canton,  Colombo,  Fiochow,  Hankow,  Harbin.  Hongkew    (Shanghai?, 
Ipoh,  lohore,   Kobe  (Hiogo),    Kuala   Lumpur,    London    Lyons,    Malacca,   Manila,  Nagasaki,  New   Yurk,   Peking,   Pening,  Rangoon,  Saigon,  San  Francisco 
Sbanghai,  Singapore,  Sourabaya,  Tientsin,  Tsingtao,  Yloilo,  Yokohama.  oi         .       i       -- 

LONDON  COMMITTEE  ' 
HENRY  KESWICK,  Esq.,  M.P.  |  WM.  GAIR  RATHBONE,  Esq.  |  '  ].  R.  M.  SMITH,  Esq.  -  A.  M.  TOWNSBND,  Esq. 

e  ,  _  -  S''*  CHARLES   ADDIS,  \  w„.,„.  :„  t  „„j„„  JOHN  MacLENNAN,  Sub-Manager. 

GatAHCNVXOH  SrasBf  I  L«MD*ii,  E.C.  3.  H.  D.  C.  JONES,  '  |  Managers  in  London,  W.  ^4.  BLACKIE,  Accountsnt. 


3.14 


tEbe  Jtwestors'  IRevtew. 


Ai'RiL  6,   1918. 


LONDON  COUNTY  &  WESTMINSTER  BANK  LIMITED. 

ESTABLiISHBD    IN    1836. 

AUTHORISED  CAPITAL  £17,000,000,  in  850,000  Shares  of  £20  each. 

Reserve  exceeds        -        -        -        £4,700,000. 
Chairman:  WALTER  LEAF.  Esq. Deputy  Chairman:    Sir  MONTAGUE  TURNER. 

HEAD    OFFICE:     41,    LOTHBURY,    E.G.  2. 

Joint  General  Managers:     F.  J.  BARTHORPE.  J.  W.  BUCKHURST. 

Foreign  Branch  Office :    82,  Cornhill,  E.G.  3. 

The  Bank  is  represented  by  Branches  or  Agents  in  all  the  Principal  Cities  and 
Towns  of  the  United  Kingdom  and  has  Correspondents  throughout  the  World. 

Spanish  Branches  :— Barcelona :  Paseo  de  Gracia  8  &  10.   Madrid  :    Calle  de  Alcala  43. 

Affiliated  in  Ireland  t    Ulster  Bank  Limited. 

Affiliated  in  France  ;    London  Gounty  and  Westminster  Bank  (Paris)  Limited. 
Paris:  22,  Place  Vendome.       Bordeaux;    22/2+,  Cours  de  I'lntendance. 

EVERY  DESCRIPTION  OF  BRITISH  AND  FOREIGN  BANKING  BUSINESS  TRANSACTED 

BXECUTOR  AND  TRUSTEB  DUTIES  UNDERTAKEN. 


ENGLISH,    SCOTTISH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

ZSand  OfHoa— 3S,  Z40nibsi.i:>d  BAvaeAt  B.C.  S. 

Subscribed  Capital £1.078,87;    0    0 

Paid-up  Capital 53M37  10    0 

Further  Llabllll;  at  Proprietors     ..        ..  S39.437 'O    0 

Reserve  Fund 500,000    0    0 

LETTERS  OF  CREDIT  and  DRAFTS  on  the  Branches  and  ARenoles  of 
the  Bank  in  Australia  can  be  obtained  at  the  Head  Office,  or  through  the  Agents 
of  the  Bank,  In  the  chief  Provincial  towns  throuKbout  the  United  Kingdom. 
REMITTANCES  made  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOTIATED  or  forwarded  for  COLLECTION. 
BANKING  and  EXCHANGE  Business  of  every  description  transacted  with 
Australia. 

E.  M.  lANION   Manager. 

THE   BANK  OF  ADELAIDE. 

(Incorporated  by  Act  of  Parliament,  1865.) 
AuthoriMd  Capital        •   SI.OOO.OOO.  Subicrlbed  Capital   -   -   £82S,0(ie 

Paid-up  Capital        f  500,000 

Reserve  Fund  540,000 

1^1,040,000 

Uncalled  Capital 125,000 

Reserve  LUoUity  of  Shareholders       635,000 

ifi. 790,000 

London  Office— 11,  Leadenhall  Street,  E.C.  3. 

BILLS  on  Australasia  purchased  or  collected. 

DRAFTS  issued  and  REMITTANCES  cabled. 

DEPOSITS  received  for  fixed  periods  at  r  tes  to  be  ascertained  on  application. 

PERCY  ARNOLD,  Manager. 

THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

HMd  Offic*— f  T,  Old  Broad  Street.  E.C. 

Snbsoribed  Capital         £1,276.747     10    O 

PaldupCapital 669.685      O     O 

Reserve  Fund  and  Undivided  Pro6U         ..  3 7 5. 6 SO   11     8 

Reserve  Liability  of  Proprietors       ..  ..  606*962    10     0 

REMITTANCES  made  by  CABLE. 

DRAFTS,   LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 

Branches  and  Agents. 
BILLS  on  Ausiralasia  NEGOTIATED  or  sent  for  collection. 
DEPOSITS  Ri!.C£IVKD  for  periods  and  at  rates  which  may  be  ssoertainad 

on   application,  and    Banking    business    of    every  descnptioo    oondu&ted 

with  .ViiBtralia. 

The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorpoxatsd  1880. 

Authorised  and  Issued  Capital,  f6,ooo,ooo. 

Paid-up  Capital,  £s,ooo,ooo;  Reserve  Fund,  ;Ci, 000,000;  together    £4,00^,000 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves f8,ooo,ooo 

HEAD  OFFICE   -        -        -        71 ,  OORNHILL,  LONDON,   E.G.  3. 

DRAITS  are  granted  on  the  Bank's  Branches  throughout  the  Australian 
States  and  Doniini-tn  of  Nen.  Zealand. 

rtLEGRAPHIC  REMIITANCES  are  also  made. 

BILI  *<  are  purchased  or  s^nt  for  Colleclior, 

DiiPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
on  application. 


THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 
Paid-up  Capital    ..    C2S«,00a    0    0     J5.000  Shares  of  ^10  each. 
Rai«r¥«  Fund  . .     . .  C700,000    0    0  |   Reaenra  Profits    . .  £lt,081 

Reaarvea  L,iaollltT  of  Shareholders  UM  000. 

UnifiK  Issued    Kemituuices  cabled.  Bills  nigotiated   or  collected.     Deposits 

received  tor   fi«'*d  piirud*  at  rates  10  oe  ascertained  on   application,  and  all 

banhiu  and  exchange  business  connectea  with  Western  Australia  conducted 

(hronffa  Km  Loadon  A«eatB.  Th«  Bulk  of  AiUlaldo,  11,  L«adui)iall  Bk,  B.C.a. 


BANK  OF  NEW  SOUTH  WALES 

Eilablished  1117. 

Paid  up  Capital £3,904,860 

Reserve  Fund     2,876,000 

Reserve    Liability    of 

Proprietors    3,904,860 

g  167684,720 

He&d  Office  :  BTDNET,  NEW  SOUTH  WALES. 

London  Directors : 

Sir  Frederick  Green,  Chairman. 

H.  L.  M.  Trittoh,  Esq. Walter  S.  M.  Borms,  Esq. 

David  Georoe,  Uanagn.  J.  S.  Campbell,  Stcntary. 

Halkerstone  Mbldruu,  David  Geddie, 

Assiitant  Manager.  Accountant. 

The  Bank  has  331  Branches  and  A|enolet  in  the  Australian  Stales, 
New  Zealand,  Fiji,  Papua  (Npw  Guinea),  and  London,  and  Agents  and 
Correspondents  all  over  the  World,  on  whom  the  London  Office  grants 
Circular  Letters  of  Credit  and  Circular  Notes.  Also  issues  Drafts  on 
demand.  Makes  Mail  and  Cable  Transfers.  Negotiates  and  Collects 
Bills  of  Exchange.  Receives  Deposits  for  Fixed  Periods  on  terms 
which  may  be  known  on  application,  and  transacts  every  description  of 
Australian  Banking  business. 

I<ondon  Office:  29,  THREADNEEDLB  STRECT,  K.C.  2. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital  £4,000.000 

Paid-up  Capital  1,800,000 

Reserve  Fund    2,000,000 

branches — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendoza,  Concordia,  Babia 
Blanca,  Corddba.  Tucumin,  Paran&,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires,  Boca  (Buenoj  Aires),  Calle  Sana  Vt  (Buenos  Aires), 
Calle  B  de  IrigoyeD  (Buenos  Aires)  URUGUAY.— .^iontevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agenc\),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro.  Sao  Paulo,  Santos,  Per- 
nambuco.  Para,  Bahia,  Victoria  Curityba,  Mankos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  HaKvy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued     Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  StreetrE.C.  j. 


BANK    OF    NEW    ZEALAND. 

{Imorporattd  July  igth,  i86l.) 
BANKERS  TO  THE  NEW  ZEALAJ^D  GOVERNHEHT, 
London  OEfice:  i,  Queen  Victoria   Street,  London,  E.C.  4. 

AUTHORISED  CAPITAL        iCS.Joo.ooo 

SUBSCRIBED  CAPITAL. 

Four  per  Cent.  Guaranteed  Stock         f  529,968 

"A"   Preference  Shares  issued  to  New  Zealand  Government        ..       300,000 
"B"  Preference  Shares  issued  to  New  Zealand  Government  930,000 

Ordinary  Shares       ..        .,        , i.^oo.ooo 

£2.779.988 

Reserve  Fund  and  Undivided  Profits    ..  .£2,246,393 

Negotiates  and  collects  Bills  of  Exchange. 

Grants  drafts  on  its  Offices  in  New  Zealand,  Australia,  Fi)i  and  Samoa,    Re- 
miitances  made  by  telegraphic  transfer. 

ALEXANDER  IkAV,  MaM«w. 


ICbe  Jnvestore'  IReview, 


Vol.  XLI.— No.  1,057. 

New  Series. 


SATURDAY,  APRIL  6,   1918. 


CtweTapeV.")   PrJCC  66. 


PUBLISHER'S    NOTICES. 

XLbC  investors'  IReViCW  is  a  subscription  journal,  and  win 
be  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning 
on  the  following  terms  : — 
One  Year,  £1  5s.  Od.    Six  Months,  12s.  6d.    Three  Months,  6s.  6d. 

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"Investors'  Review," 

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¥ 


Passing    Events. 


Last  vi^eek's  applications  for  National  War  Bonds 
of  the  Bank  of  England  issue  numbered  14,352,  repre- 
senting ;^  16,3 16,238  applied  for.  It  was  not  at  all  a 
bad  result  for  a  week  broken  into  by  holidays,  and, 
added  to  previous  figures,  brought  up  the  total  num- 
ber of  applications  to  496,959,  and  the  total  amount 
of  money  subscribed  in  this  form  of  debt  to 
^"611,193,400.  Of  the  Post  Office  issue  in  the  week 
ended  March  23,  which  was  an  unbroken  week,  the 
amount  applied  lor  was  ;^"77o,ooo  by  29,800  appli- 
cants. This  raises  the  total  number  of  applicants 
through  the  P.O.  to  972,800,  and  the  amount  to 
;^"24,o43,ooo.  In  the  same  week  War  Savings  certi- 
ficates to  the  number  of  2,845,120  were  sold,  raising 
the  total  sales  to  174,221,621,  and  that  number  repre- 
sents in  money  ;^' 123 ,000,000.  Thus  the  debt  subscrip- 
tions of  all  kinds  in  National  War  Bonds  and  War 
Savings  certificates  has  produced  just  over 
^,760,000,000.  A  fresh  series  of  National  War  Bonds 
is  now  on  sale,  and  we  hope  the  results  of  that  will  be 
at  least  as  encouraging  as  those  of  the  issues  now- 
closed.  Even  the  classes  rejoicing  in  undreamt  of 
wealth  from  lavish  wages  pr,ovided  by  credit  may  at 
last  begin  to  realise  that  if  the  war  is  to  be  won  as  it 
should  be,  and  must,  they  would  do  well  to  save  and 
invest  even  though  the  pious  Chancellor  of  the  Ex- 
chequer denies  them  the  innocent  excitement  of  the 
premium  bond. 


Government  did  not  know  ;  it  was  best  to  go  crookedly. 
But  we  are  not  such  selfish  and  jealous  people  as  all 
that.  On  the  contrary,  it  is  matter  for  rejoicing  with 
most  of  us  that  a  soldier  of  General  Foch's  well-tried 
capacity  and  splendid  abilities  should  take  the  supreme 
direction  of  all  the  armies,  French,  British  and  Ameri- 
can, now  arrayed  against  the  devastating  invader  in 
France  and  Flanders.  We  are  all  of  us  Allies  leagued 
together  for  the  victory ;  not  to  indulge  in  military 
parades,  in  boastings  and  vain  glory.  The  man  who 
struck  the  decisi\e  stroke  at  the  long  Marne  battle,  and 
who  did  it  at  the  right  time,  is  the  man  our  troops 
will  be  proud  to  follow.  Possibly  had  we  possessed  .a 
military  leader  shaped'  after  the  type  of  the  Prussian 
ones,  had  our  Marshal  Haig  been  a  ' '  limelight  per- 
former," ever  keeping  himself  before  the  public  eye,  a 
certain  amount  of  chagrin  and  jealousy  might  have 
been  generated  among  the  unthinking  by  the  appoint- 
ment of  General  Foch  to  the  supreme  Allied  command, 
but  Sir  Douglas  Haig  is  not  a  man  of  that  cast  at  all.  He 
has  always  kept  himself  in  the  background,  and  from 
all  we  have  heard  of  him,  he  is  much  more  likely  to 
feel  relieved,  and  to  rejoice  that  some  of  the  immense 
responsibility  has  been  taken  off  his  shoulders,  than  to 
dream  of  making  it  a  grievance.  Surely  there  will  be 
enough  left  for  him  to  do  in  the  guidance  of  our  own 
armies,  so  that  they  may  always  perform  their  share. 


So  far  as  we  have  been  able  to  discover,  there  never 
has  been  any  real  hostility  to  the  idea  that  a  Frenchman 
should  take  supreme  command  over  all  our  armies  in 
the  West.  The  nation  wants  the  war  well  won,  and 
is  not  solicitous  who  leads  it  so  long  as  the  goal  is 
attained,  .'\pparently,  however,  the  War  Office  pundits, 
or  the  War  Cabinet,  think  otherwise,  and  have  been 
living  in  a  sort  of  quaking  fear  lest  the  announcement 
that  General  Foch  had  been  placed  in  supreme  command 
would  produce  something  like  a  revolt  among  their 
grumbling  and  by  no  means  homogeneous  following  in 
the  House  of  Commons  and  in  the  country.  So  the 
arrangement  was  camouflaged,  to  use  an  expressive 
war  word  now  becoming  familiar,  led  up  to  by  devious 
ways  of  Government  Press  suggestion,  and  so  gradu- 
ally disclosed  to  a  nation  which  might  be  angry.    The 


Some  things  were  said  at  the  Leicester  gathering  of 
the  Independent  Labour  Party  this  week  which  de- 
serves serious  attention.  Because  we  differ  from  the 
leaders  of  that  party,  few  of  whom  are  "labourers" 
in  the  usual  acceptation  of  the  term,  or  know  anything 
practical  about  labc^ur,  it  does  not  follow  that  we  must 
regard  them  either  as  altogether  renegades  and 
traitorous  to  their  country  or  as  actively  rebellious. 
But  the  impression  we  gather  from  such  summaries  of 
the  speeches  as  Press  restrictions  now  enable  us  to  get 
is  that  the  leaders  are  not  practical  men.  They  go 
forth  with  their  idealism  into  a  world  of  rude  facts  and 
attempt  to  apply  their  .sickly  theories  without  consider- 
ing these  facts.  For  example,  Mr.  Smillie  again  put 
forward  the  idea  that  we  should  stop  fighting  and 
negotiate  with  the  enemy ;  insinuated,  in  fact,  that  our 
Government  was  criminal  to  persist  in  continuing  the 
struggle.  This  enabled  him  to  draw  a  picture  in  the 
Carlvle  manner  of  a   moment   "  ten    or    fifteen   years. 


536 


^be  Jnvestors'  IRevicw. 


April  6,   1918. 


hence,"  when  the  last  British  and  German  soldier 
would  confront  each  other  on  No  Man's  Land  and 
would  be  urged  by  their  Governments  to  get  on  with 
the  war,  but  would  exchange  their  last  cigarettes  and 
match  and  ask  each  other,  "  But  what  is  it  about?  " 
We  read  almost  every  day  more  or  less  of  the  same 
sort  of  stuff,  but  this  sample  is  enough  to  show  how 
completely  ignorant  Mr.  Smillie  and  his  supjwrtcrs  are 
of  the  all-impelling  forces  that  have  brought  about  this 
war,  and  of  the  underlying  motives  which  now  order  us 
to  continue  it  to  the  end  for  the  world's  deliverance. 
They  would  negotiate,  these  people  always  tell  us,  and 
we  should  really  feel  obliged  if  they  would  tell  us  with 
whom.  Is  it  with  the  Kaiser,  with  his  military  leaders, 
with  the  apostles  of  Pan-Germanism  in  church,  college 
and  market  place?  If  so,  what  guarantee  can  they  offer 
us  that  these  war  makers  and  coveters  of  other  men's 
goods  will  deal  honestly  in  the  bargaining  and  keep 
their  word,  once  passed?  They  can  give  no  guarantee 
of  any  sort.  Can  they  not  see  that  the  main  immediate 
reason  why  fighting  must  go  on  lies  in  the  perfect  un- 
trustworthiness  of  those  who  are  now,  in  a  last 
despairing  fury  of  murder,  pushing  the  Germanic  races 
towards  the  bottomless  pit  in  the  vain  hope  that  they 
themselves  may  escape  their  doom?  If  they  could 
only  grasp  that  fact  they  might  perhaps  hold  their 
tongues ;  although  some  of  them  seem  almost  to  be  of 
that  unfortunate  type  of  mind  which  must  always  strive 
after  oddity,  singularity  of  ideas,  and  perambulate  the 
world  wearing  a  general  air  of  hostility  towards  all 
mankind  outside  their  selected  group  of  followers.  But 
there  appears  nevertheless  to  be  a  few  sensible  men 
amongst  these  Independent  Labourites,  and  some  of 
them  are  beginning  to  betray  symptoms  of  their  eyes 
opening  to  the  light.  Mr.  Ramsay  Macdonald,  for 
example,  has  several  times  lately  shown  that  he  has 
begun  to  understand  this  fight  to  be  a  war  between 
light  and  darkness,  between  righteousness  and  false- 
hood, between  freedom  and  justice  and  the  rapacity  of 
the  insatiable  robber.  Because  it  is  that  we  have  to 
fight  it  out.  Until  the  aggressors  have  been  beaten  to 
the  dust  and  lay  down  the  .sword  negotiating  is  impos- 
sible. The  least  people  like  these  Labourites  who 
gather  themselves  together  to  display  discontent  before 
the  country  can  do  is  to  keep  quiet  until  the  issue  is 
decided.  Thev  may  not  have  to  do  it  for  so  very  long 
now.      Have  they  the  requisite  self-'restraint  ? 


Many  people  are  disposed  to  regret  the  tone  of  some 
of  the  Prime  Minister's  recent  war  messages.  They 
seem  to  betray  fright,  scare,  and  really  if  that  is  so  they 
do  not  represent  the  attitude  of  the  nation  towards  this 
last  and  crowning  agony  of  the  war.  Was  it  necessary 
to  adopt  a  tone  of  almost  despairing  entreaty  in  that 
message  which  the  Prime  Minister  sent  to  Lord  Read- 
ing to  be  read  out  to  an  audience  in  the  United  States? 
And  is  this  call  for  an  extension  of  the  age  during 
which  our  males  are  to  be  liable  for  mili- 
tary service  really  so  acutely  urgent  as  Mr. 
George  says?  The  intimation  that  the  liability  to 
serve  age  is  to  be  raised  to  50  has  produced'  something 
like  consternation  in  business  circles,  and  that  not  by 
any  means  for  merely  selfish  reasons.  The  dislocation 
of  business  produced  by  a  general  enforcement  of  this 
expanded  liability  to  be  summoned  to  the  colours  might 
well  prove  disastrous,  and  almost  irremediable  in  many 
branches  of  ind^istry  and  business.  Our  industries  can- 
not fail  to  be  hampered,  and  perhaps  more  or  less  dis- 
organised, and  our  position  as  world  traders  is  nearly 
sure  to  be  compromised  by  this  latest  combing  out. 


But  the  basic  question  is  why  the  necessity  for  this 
step  now  on  the  instant?  Have  we  not  an  Army  of 
something  like  five  millions  of  men  on  foot?  Can  we 
not  supplement  that  enormous  mass  of  men  by  another 
million  or  two  of  recruits  from  the  more  warlike  popu- 
lations of  India  if  necessary?  Have  we  not  now  the 
assistance  of  the  American  troops,  thousands  of  whom 
are  arriving  in  France  almost  every  day  in  the  week, 
and  who  will  probably  prove  to  be  amongst  the  most 
courageous,   intelligent,   and   resourceful  fighting  men 


we  the  war-worn  and  hard-pressed  .Allies  could  have? 
Why  this  feverish  rush  to  hustle  more  of  our  men, 
especially  our  elderly  men,  to  join  up,  so  that  defeat 
may  be  averted?  VV'hat  is  the  Prime  Minister  afraid 
of?  Surely  if  we  have  survived  the  onslaught  of  the 
Germans  this  time  we  are  not  going  to  be  beaten  when 
next  he  masses  his  pawns  to  try  and  break  through  our 
lines,  for  want  of  a  few  greybeards.  Can  we  not  have 
confidence  that  as  our  soldiers  have  done  so  they  will 
do  ;  that  as  our  French  .Allies  have  withstood  and  over- 
thrown the  enemy,  not  once,  but  many  times,  Ijeforc 
\'trdun  and  elsewhere,  so  they  will  again  prove  to  be 
that  enemy's  masters?  Has  the  Government  been  lying 
to  us  about  the  strength  of  our  Army?  What  is  the 
matter?  Whate\er  the  cause  of  the  screaming  it  is 
regrettable,  because  it  tends  to  damp  the  spirit  of  the 
nation.  It  sees  the  man  who  thrust  himself  without 
being  asked  into  the  position  of  its  leader  and  spokes- 
man, shrieking,  now  at  a  trying  moment,  like  a 
frightened  woman  of  weak  nerves  when  surprised  and 
scared  out  of  her  wits. 


In  the  year  to  February  28  the  Bank  of  .Scotland 
made  a  nett  profit  of  ;^285,5oo,  or  ;^27,ooo  more  than 
in  the  previous  12  months,  while  the  amount  brought 
in  was  ;^i 2,000  larger.  The  directors,  however,  are 
content  to  leave  the  dividend  at  16  per  cent.,  but  they 
set  aside  ;^ic)o,ooo,  against  ;^8o,ooo,  for  contingencies, 
place  ;^5,ooo  (new)  to  staff  widows'  fund,  and  write 
;£j'io,c)oo,  against  ;^'5,oc)0,  off  premises,  leaving 
;£?!  1,500  more  at  ;^35,73o  to  be  carried  forward.  Notes 
in  circulation  show  an  expansion  of  ;^58o,ooo  at 
;£,3,0'75,ooo,  and  current  accounts,  &c.,  have  increased 
;£^i, 540,000  to  ^28,457,000.  Cash  has  risen  ;^76o,ooo 
to  ;£"4, 580,000,  and  investments  are  ;^i,540,ooo  up  at 
;^i 5,450,000,  but  discounts  and  advances  are  ;^i 70,000 
lower  at  ;^i3,25o,c)00.  These  figures  seem  to  indicate 
a  certain  lack  of  enterprise,  which,  however,  may  be 
justifiable  in  the  circumstances.  The  balance-sheet 
totals  at  ;^34, 950,000,  an  increase  of  ;£'i, 936,000.  A 
year  ago  ;^3C)o,ooo  had  to  be  taken  from  reserve  to 
write  off  the  depreciation  on  investments,  and  we  are 
glad  to  see  that  no  similar  provision  has  to  be  made 
on  this  occasion.  The  amounts  set  aside  for  contin- 
gencies do  not  figure  In  the  balance-sheet. 

Magnificent  progress  continues  to  be  made  by  the 
ably  managed  Chartered  Bank  of  India,  Australia,  and 
China.  Gross  profits  last  year  amounted  to 
;^923,ooo,  an  increase  of  ;^94,4oo,  but  expenses 
absorbed  ;^73,ooo  more,  and  the  nett  profit  of 
;^402,8oo  is  ;i^r2i,500  up,  while  jQ2y,ooo  more  was 
brought  in.  Consequently  the  directors  feel  justified 
in  raising  the  bonus  from  12s.  to  20s.  per  share  in 
addition  to  the  regular  dividend  of  14  per  cent.,  mak- 
ing a  total  dividend  of  19  per  cent.,  against  17  per 
cent.,  both  free  of  income-tax.  Moreover,  ^100,000 
is  again  placed  to  reserve  fund,  raising  it  to 
;^2, 000,000,  almost  equal  to  the  paid-up  capital  and 
note  circulation  combined.  Officers'  superannuation 
fund  gets  ;^5,ooo  more  at  ;^25,ooo,  and  ;^40,ooo, 
against  jQy:),ooo,  is  written  off  premises,  leaving 
;^i67,26o,  or  ;^io,ooo  more,  to  be  carried  forward. 
It  is  a  fine  achievement,  and  we  do  not  suppose  that 
the  shareholders  will  boggle  for  a  moment  to  increase 
the  directors'  fees  from  ;^6,ooo  (at  which  they  were 
fixed  in  1906)  to  ;^io,ooo.  Considering  the  expan- 
sion in  the  business  during  the  last  dozen  years,  they 
are  well  and  truly  earned.  Current  accounts  have  in- 
creased ;^4,886,ooo  to  ;^i9,350,ooo,  and  fixed  deposits 
;^470,ooo  to  ;£'8,693,ooo,  but  the  note  circulation  shows 
a  contraction  of;^93,ooo  at;^926,ooo.  Bills  payablehave 
been  reduced  by  ;i^2,84o,ooo  to  jQ^8t,,qoo,  and  loans 
payable  by  ;^42o,ooo  to  _;(^530,ooo,  but  acceptances  are 
up  ;^28o,ooo  at  ;^i,256,ooo,  and  sundry  liabilities 
;^257,ooo  at  ;^i,  180,006.  On  the  other  side,  cash 
in  hand  has  increased  ;^'3, 050,000  to  ;^8, 694,000,  but 
bullion  has  fallen  from  ;^28o,ooo  to  ;^45,ooo.  Invest- 
ments are  ;^ 300, 000  higher  at  ;^4, 340,000,  and  dis- 
counts, &c.,  have  increased  _;^54o,ooo  to  ;^i 0,143,000. 
Bills  of  exchange  are  down  ;^~,730,ooo  at  ;if4,338,ooo, 


April  6,  1918. 


Zbc  Jnvestove'  IReview. 


337 


but  this  is  evidently  due  to  the  segregation  of  a  new 
item  of  ;^"6,446,ooo  for  drafts,  &c.,  in  transit.  The 
balance-sheet  totals,  at  ;^'36, 126,000,  an  increase  of 
;£,'2,7oo,ooo,  and  everything  looks  as  healthy  as  could 
be  desired. 


Further  evidence  of  the  prosperity  being  enjoyed  in 
our  great  Dependency  is  furnished  by  the  report  of  the 
National  Bank  of  India,  Ltd.,  which,  by  the  way, 
will  celebrate  its  jubilee  meeting  next  week.  Gross 
profits  amounted  to  ;^'686,650,  an  increase  of 
;£,!  17,000,  and  the  nett  profits  were  ;^3S3,ooo,  or 
;£,56,coo  higher.  In  addition  to  the  regular  dividend 
of  16  per  cent.,  the  directors  recommend  a  bonus  of 
4  per  cent.,  making  20  per  cent,  in  all,  free  of  income- 
tax,  besides  which  the  appropriation  to  reserve  is 
doubled  at  ;^ioo,ooo.  Last  year  ^"64,000  had  to  be 
written  off  investments,  and  as  there  is  no  correspond- 
ing item  on  thfs  occasion  the  carry  forward  is  increased 
by  ;^33, 000  to  ;£a40,ooo.  The  reserve  now  amounts 
to  ;£,  1,350,000,  against  a  paid-up  capital  of  one  mil- 
lion, with  a  similar  amount  uncalled.  Current  and 
deposit  accounts  have  risen  ;^"5, 133,000  to  ;^'24,685,ooo, 
bills  payable  ;^203,ooo  to  ^1,550,000,  and  accept- 
ances ^"213,000  to  ^^850,000.  Cash  has  increased 
^"2,684,000.  to  ;^7,o8o,ooo,  bills  are  up  ^^2,480,000  at 
;£,  12,076,000,  and  advances  are  ;£^50,ooo  higher  at 
^£,7,332,000.  The  result  of  these  movements  is  that 
the  balance-sheet  total  is  ;^5, 660,000  up,  and  now 
reaches  almost  30  millions,  a  very  respectable  figure, 
even  in  these  days  when  we  are  apt  to  forget  what  a 
modest  million  reallv  means. 


Now  that  the  British  Italian  Corporation,  Ltd.,  has 
got  a  proper  start  it  has  been  able  to  do  some  profitable 
business,  although  conditions  have  not  been  favourable 
and  a  good  deal  of  the  work  done  has  been  of  a  pre- 
paratory nature.  The  corporation  was  formed  in  the 
middle  of  1916  with  the  active  support  of  the  Govern- 
ment, which  provides  a  subsidy  of  5  per  cent,  on  the 
paid-up  capital,,  repayable  without  interest  by  allocation 
of  an  amount  equal  to  any  dividend  which  the  share- 
holders receive  in  excess  of  5  per  cent,  cumulative. 
Under  this  arrangement  the  company  has  received 
;^83,42o,  which  has  been  placed  to  reserve..  Nett 
profits  last  year  amounted  to  ;^43,070,  out  of  which  a 
dividend  of  5  per  cent,  is  recommended,  leaving  ;^5,88o 
to  be  carried  forward,  against  ;^4,220  brought  in.  The 
corporation's  auxiliary  in  Italy,  the  Compagnia  Italo- 
Britannica,  made  a  nett  profit  of  147,600  lire,  and  also 
pays  a  dividend  of  5  per  cent.  Shares  in  this  company 
figure  in  the  balance-sheet  at  ;^i 58,800,  and  there  are 
other  investments  amounting  to  £153,700.  Bills  re- 
ceivable amount  to  ;^646,ooo,  and  cash  stands  at 
;^'68,900.  It  looks  quite  a  promising  start,  and  we 
have  every  confidence  that  the  corporation  will  carve 
out  for  itself  a  useful  and  profitable  career. 


Sir  W.  George  Watson,  Bart.,  was  in  a  dismal  frame 
of  mind  at  the  meeting  of  the  Maypole  Dairy  Co., 
Ltd.,  and,"  to  read  the  greater  part  of  his  speech,  one 
might  imagine  ithat  red  ruin  was  staring  the  company 
in  the  face.  It  is  all  due  to  those  wicked  people  who 
are  allowed  to  sell  sugar  and  consequently  attract 
customers  for  tea,  margarine,  and  other  articles.  But 
before  the  sugar  restrictions  came  into  force  there  was 
nothing  to  prevent  the  Maypole  from  selling  it,  and 
we  presume  they  deliberately  decided  not  to  do  so 
because  other  lines  paid  them  much  better.  There  can 
have  been  no  other  reason,  although  it  must  often  have 
put  their  customers  to  considerable  inconvenience.  We 
cannot  say  that  we  have  any  sympathy  with  their 
troubles,  but  they  might  get  some  if  they  faced  the 
position  more  cheerfully.  After  all,  it  does  not  re- 
quire a  great  deal  of  philosophy  to  bear  the  hardship 
of  a  million  a  year  nett  profit  and  a  dividend  of  225 
iper  cent. 


£17,000  less  at  £43,670,  and  we  may  note  that  this 
time  there  is  no  reference  to  excess  duty.  A  year  ago 
£20,000  was  placed  to  reserve,  raising  it  to  £120,000, 
and  by  onuitting  any  simikir  appropriation  now  the 
available  balance  is  £3,000  up  at  £36,650.  There  is 
consequently  no  difficulty  in  repeating  the  dividend  of 
8  per  cent,  (of  which  2^  per  cent,  has  already  been 
paid),  and  the  carry  forward  is  £2,000  up  at  £23,270. 
The  report  does  not  enter  into  any  details  about  the 
trading  position,  these  being  reserved  for  the  chair- 
man's statement  at  the  annual  meeting.  Changes  in 
the  balance-sheet  are  unimportant,  and  need  not  de- 
tain us. 


^  Excellent  progress  is  shown  in  the  report  of  the 
Canada  Steamship  Lines,  Ltd.,  for  the  past  year.  Most 
of  the  company's  business  is  confined  to  the  Great 
Lakes,  far  removed  from  the  dangers  of  the  war  zone, 
and  the  total  revenue  shows  an  iircrease  of  $1,400,000 
at  $13,534,000.  On  the  other  hand,  expenses  increased 
nearly  a  million  and  a-half,  with  the  result  that  nett 
earnings  come  out  $36,000  lower  at  $4,024,000,  and 
as  $260,000  more  is  set  aside  for  depreciation,  the  nett 
profit,  after  providing  for  fixed  charges,  is  $213,000 
down  at  $2,178,000.  However,  profit  on  sales  of  fixed 
assets  amounted  to  $942,000  against  $180,000,  and  it 
has  therefore  been  possible  not  only  to  wipe  off  the 
arrears  of  preference  dividend  (about  13  per  cent.),  but 
to  pay  the  full  rate  of  7  per  cent,  for  the  past  year. 
Even  then  there  is  a  surplus  of  $2,375,000,  equal  to 
almost  20  per  cent,  on  the  common  stock,  but  the 
directors  prudently  recommend  that  this  should  be 
carried  forward  in  order  to  strengthen  the  position  of 
the  company.  The  ratio  of  expenses  to  gross  revenue 
rose  from  66|  to  over  70  per  cent.,  and  until  conditions 
become  more  normal  it  is  wise  to  provide  for  contin- 
gencies. It  is  stated  that  the  tonnage  owned  by  the 
company  is  greater  than  it  was  last  year,  despite  the 
losses  that  have  occurred,  and  the  directors  are  con- 
fident that  there  is  a  promising  field  for  development 
and  expansion  on  the  high  seas.  Ample  provision 
appears  to  have  been  made  for  depreciation,  and  we 
have  no  doubt  it  is  a  fact  that  the  fleet  is  in  a  state  of. 
greater  efficiency  than  at  any  previous  time. 

From  the  Financial  Times  we  learn  that  a  company 
called  the  British  Cellulose  and  Chemical  Manufactur- 
ing (Parent  Co.),  Ltd.,  has  been  formed,  with  a  share 
capital  of  £3,500,000,  and  prior  charges,  it  is  esti- 
mated, will  raise  the  total  to  fully  six  millions.  Appar- 
ently it  is  intended  to  take  over  and  extend  the  existing 
business  operating  under  a  similar  title,  and,  according 
to  Manchester  gossip,  the  undertaking  will  have  the 
active  support  of  the  Government  as  a  "key"  industry. 


Business  was  not  particularly  good  for  the  London 
and  Thames  Haven  Oil  Wharves,  Ltd.,  last  year.  Nett 
profits,     including     the     balance    brought     in,     were 


LLOYDS  BANK 
LIMITED. 

HEAD  OFFICE :  71,  LOMBARD  STREET,  E.C.  3. 


WAR  LOANS  and  NATIONAL  WAR  BONDS. 

Holders  of  Coupons  and 
Dividend  Warrants  who  have 
no  Banking  Accounts  can 
obtain  payment  at  any  of  the 
900  Offices  of  the  Bank. 


FRENCH    AUXILIARY: 


LLOYDS  BANK  (FRANCE)  AND 
NATIONAL  PROVINCIAL  BANK  (FRANCE)  LTD. 


338 


Ube  Jnvestois'  IReview, 


April  6,   1918. 


The  board  includes  Sir  Lionel  Phillips  (of  the  Central 
Mining  group)  and  Sir  A.  Trevor  Dawson,  vice-chair- 
man and  a  managing  director  of  Vickers,  Ltd.,  so  that 
the  new  venture  is  assured  of  powerful  backing.  Fur- 
ther developments  will  be  awaited  with  interest,  and  as 
another  director,  Mr.  H.  McGowan  is  also  a  managing 
director  of  Nobels,  who  recently  joined  the  board  of 
Levinsteins,  Ltd.,  there  is  an  impression  that  a  big 
merger  with  Briti.sh  Dyes,  Ltd.,  is  in  contemplation  for 
the  control  of  this  vastly  important  side  of  the  chemical 
business.    We  must  wait  and  see. 


Debenture-holders  in  the  Monterey  Railway,  Light 
and  Power  Co.  will  be  somewhat  reassured  by  the  re- 
fxxrt  which  has  just  been  issued  by  the  committee  ap- 
pointed in  October,  1916.  The  troubles  of  the  com- 
pany began  some  time  previously,  owing  to  the  failure 
to  obtain  supplies  of  fuel  oil  necessary  for  the  opera- 
tion of  the  tramway,  light  and  power  plants,  and  these 
enterprises  had  in  consequence  been  taken  over,  and 
were  being  operated  by  a  local  commission  appointed 
by  the  Governor  of  the  State  of  Nuevo  Leon.  Interest 
and  sinking  fund  was  in  arrears,  insurance  premiums 
could  not  be  paid,  salaries  were  overdue,  and  the  com- 
pany's earnings  were  in  paper  which  could  not  be  con- 
verted into  gold,  while  these  requirements  could  only 
be  satisfied  in  gold.  Permission  was  obtained  to  issue 
prior  lien  bonds,  but  thanks  to  the  authority  given 
early  last  year  to  the  company  to  collect  a  certain  pro- 
portion of  its  tariffs  in  gold  it  is  hoped  that  resort  to  a 
bond  issue  will  not  be  necessary.  Difficulties  are  not 
by  any  means  all  surmounted,  but  it  is  satisfactory  to 
learn  that  the  Government  Commission  apipears  to  have 
done  everything  that  could  reasonably  be  expected  in 
the  way  of  careful  and  honest  administration,  and  the 
outlook  therefore  is  not  nearly  so  black  as  it  seemed  a 
few  months  ago. 


There  was  an  appreciable  recovery  in  the  output  of 
gold  by  the  Mysore  Gold  Mining  Co.  in  1917,  which 
was  due  to  a  marked  increase  in  the  quantity  of  resi- 
dues dealt  with.  This  was  the  outcome  of  the  starting 
up  of  the  dump  retreatment  plant,  part  of  it  in  June 
and  the  balance  in  October.  The  average  yield,  how- 
ever, was  appreciably  less,  but  this  was  offset  by  an  in- 
crease m  the  tonnage  milled,  which  rose  from  305,845 
to  307,126.  Tailings  treated  amounted  to  the  record 
total  of  523,455  tons,  as  against  433,625.  The  total 
yield  was  ;^842,o57,  against  ^836,743,  but  the  profit 
declined  from  ;^45o,534  to  ;^4b4,296.  This  reduction 
ot  ^46,237  in  the  profit  was  due  to  heavily  increased 
costs,  and  the  higher  rate  of  exchange.  Expenditure 
on  capital  account  amounted  to  ;^ioo,i37,  and  the 
balance  available  is  ;^83,044,  which  is  about  ;^28,6oo 
less  than  last  year.  This  necessitates  a  further  reduc- 
tion in  the  dividend  from  95  to  85  per  cent.,  the  lowest 
'^p^^  since  1895.  The  carry  forward  is  ^3,955,  against 
^3-o78-  In  future  it  is  proposed  to  pav  dividends 
half-yearly,  the  interim  in  October  and  the  final  in 
April.  Reserves  of  ore  have  been  further  reduced  from 
1,019,000  tons  to  939,000.  The  retreatment  plant  is 
now  giving  excellent  results,  the  recovery  of  gold  being 
in  excess  of  original  estimates.  A  large  reduction  in 
capital  expenditure  is  now  practicable,  and  will  thus 
synchronise  with  the  proposed  diminution  of  output. 
Development  restriction  and  a  continuance  of  the  poor 
zone  are  responsible  for  the  decrease  in  the  ore  re- 
serves, and  the  underground  position  seems  now  to 
require  careful  watching. 

A  still  further  improvement  in  profits  is  recorded  bv 
the  Rio  Tinto  Co.  in  the  report  for  191 7.  The  total 
was  ;£:2.o7i.827,  as  against  ;^2,038,825  in  1916,  which 
showed  a  sharp  recovery  on  191 5,  when  the  profits 
dropped  to  ;{;  1,292, 260.  For  the  two  years  preceding 
th€  war  the  profits  averaged  nearlv  ^2,000,000.  so 
that  flie  company  is  liable  to  onlv  a  small  amount,  if 
any,  in  respect  of  excess  profits  duty.  The  deprecia- 
tion allowance  is  raised  from  ;^47,263  to  jf.fii ,Sr^t^. 
By  a  final  payment  of  45s.  per  share  the  dividend^  is 
brought  up  to  90  per  cent,  for  the  year,  which,  how- 


ever, is  5  per  cent,  less  than  for  1916,  the  directors 
apparently  electing  to  keep  a  large  reserve  in  hand, 
the  carry  forward  being  raised  from  ;^283,330  to 
/j'cig,572.  Very  little  information  is  given  in  the 
report  regarding  mining  operations,  but  it  is  explained 
that  all  the  copper  produced  found  a  ready  market  at 
a  high  price.  Thus  the  difficulties  which  attended 
shipments  from  the  Mason  and  Barry  mine  did  not 
affect  the  Rio  Tinto. 


The    Revenue,    the    Debt,    and    the 
Coming    Budget. 

For  the  year  ended  March  31  last  the  revenue  of  the 
United  Kingdom  from  all  sources,  except  borrowing, 
was  ;67*^7'^34»5^5*  Such  a  figure  was  never  before 
reached  in  the  history  of  the  country.  In  fact,  it  is  the 
largest  revenue  ever  collected  by  any  country  in  the 
world's  history.  It  exceeds  that  of  the  previous  year 
by  ;^i33, 807,000,  and  from  this  point  of  view  may  be 
held  to  afford  emphatic  testimony  to  the  extent  of  our 
resources,  to  our  staying  power.  And  it  is  all  the  more 
remarkable  when  we  consider  that  such  a  revenue  was 
drawn  from  the  community  in  the  fourth  year  of  the 
war.  Since  August  4,  1914,  we  have  raised  nearly 
;^i, 800,000,000  from  taxation  and  State  monopolies, 
interest  received  or  credited,  and  so  forth  ;  but  within 
the  same  period  our  spendings  have  amounted  to  nearly 
^"7,000,000,600,  or,  to  be  more  exact,  to 
/;'6,95 1, 000,000.  Deducting  the  revenue  from  this 
stupendous  aggregate  we  get  ;^s,  157,000,000  as  the 
amount  we  have  had  to  borrow  in  order  to  meet  the 
consuming  expenditure  of  this  civilisation  obliterating 
war. 

This  last  fact  is  of  the  utmost  importance  if  we  are 
to  understand  the  true  position  of  the  country,  the  fact 
that  the  war  will  leave  us  and  all  our  allies  over- 
whelmed in  debt.  It  is  also  a  notable  fact  that  the  old 
and  long-established  sources  of  revenue,  in  spite  of 
various  post-war  adjustments  and  increases,  for  the 
most  part  have  not  given  so  very  much  more  money  to 
the  Exchequer  than  they  did  before  the  war.  The  Ex- 
cise income,  indeed,  was  _;^i 7,608,000  less  last  year  than 
in  the  previous  one,  but  that  may  be  explained  bythe  re- 
strictions on  the  output  and  consumption  of  alcoholic 
liquors  and  has  not  necessarily  anything  directly  to  do 
with  the  taxpaying  capacity  of  the  p)eople.  Indirectly 
though  it  may  have  a  good  deal  to  do  with  our  staying 
power.  So,  too,  with  the  Customs  revenue.  It  has 
been  restricted  by  the  liquor  traffic  regulations  afore- 
said, and  by  the  effect  of  the  submarine  piracy,  as  well 
as  by  a  check  on  consumption,  the  effect  of  augmented 
duties.  Even  so,  the  Customs  yielded  ;^700,ooo  more 
last  year  than  in  the  year  ended  March  31,  1917,  and 
small  increases  came  from  most  other  branches  of  taxa- 
tion ;  nothing  to  boast  of,  perhaps,  and  yet  estate,  &c., 
duties,  in  spite  of  depreciation  and  the  effect  of  en- 
hanced taxation,  produced  ;^442,ooo  more. 

The  main  sources  of  the  increased  revenue,  however, 
were  the  income-tax  and  the  excess  profits  tax,  which 
together  furnished  ;^46o, 000,000  of  the  whole 
;^7o7,ooo,ooo  collected.  The  yield  of  income-tax,  in- 
cluding super-tax,  was  ;^34, 476,000  more  last  year 
than  the  year  before,  and  the  excess  profits  duties  gave 
;^8o, 294,000  more.  It  thus  apjjears  that  the  revenue 
has  been  increased  chiefly  out  of  the  larger  profits  of 
war-created  or  stimulated  business.  Consequentlv 
these  taxes  on  expanded  profits  mav  be  said  to  repre- 
sent that  fragment  or  percentage  of  the  money  bor- 
rowed which  has  made  its  appearance  in  private 
balance-sheets  as  nett  profits  on  the  business  of  the 
year.  The  great  receipts  of  the  Exchequer  are  there- 
fore not  culled  from  old  or  stored  wealth,  but  are  the 
skimmings  of  the  mighty  stream  of  credit  called  into 
being  by  the  war. 

What  will  happen,  then,  when  nett  profits  are  no- 
longer  swollen  or  created  bv  this  war  expenditure? 
Obviously  the  income  will  disappear  from  whence  this 
revenue  was  gathered.  It  would  not  be  straightfor- 
ward, therefore,  on  the  part  of  any  Chancellor  of  the 
Exchequer  to  draw  up  his  Budget  on  the  assumption- 


Al'RiL  6,   1918. 


tTbe  Jnveetots'  IReview* 


339 


I 


that,  when  peace  returns,  he  can  continue  to  collect  a 
large  portion  of  his  income  from  excess  profits  duties, 
or  super-income-tax,  or  any  source  of  that  kind.  There 
may,  then,  be  no  excess  profits  ;  nay,  even  the  ordinary 
profits  of  businesses,  as  well  as  the  mass  of  taxable 
Hxed  incomes,  may  shrink  to  an  embarrassing  extent 
for  many  years  after  the  war  ends. 

A  wise  finance  minister  will  try  then  to  frame  his 
Budget  so  as  to  make  the  bulk  of  the  revenue  depend 
upon  durable  sources  of  wealth,  not  upon  transitory. 
Direct  taxes  in  any  case  must  remain  the  principal 
source  of  the  public  income,  but  they  may  have  to  be 
imposed  upon  different  types  of  income  than  the  easy 
one  of  war  profits.  The  transitoriness  of  the  war-pro- 
duced flush  of  credit  wealth  makes  us  regret  that  more 
of  these  profits  than  the  figures  reveal  has  not  all  along 
been  utilised  as  revenue  in  financing  the  war.  It  is  all 
very  well  to  boast  and  plume  ourselves  upon  the  won- 
derful capacity  of  the  country  to  "  stand  the  racket,"  to 
pav  its  bills,  but  that  boasting  ought  not  to  disguise 
from  us  the  fact  that  the  real  source  of  the  prosperity  of 
the  Exchequer  is  the  war  expenditure  and  little  beyond. 
If  we  were  not  accustomed  to  treat  financial  unrealities, 
make-believes  and  assumptions  with  a  gravity  of  de- 
meanour too  usually  well  calculated  to  conceal  the 
truth,  we*hould  long  ago  have  perceived  that  if  we  are 
to  be  out  and  out  conquerors  in  this  "  Armageddon  " 
our  self-sacrifices  at  home  will  have  to  be  much  greater 
than  they  have  been.  And  they  should  be  the  easier  to 
be  resolved  upon  seeing  that  if  we  lost  the  war  we 
should  probably  have  no  property  of  any  sort  left. 

Suppose,  for  example,  all  classes  in  the  country  had 
joined  in  a  self-denying  ordinance  to  make  no  money 
out  of  the  war ;  would  there  have  been  any  excess 
profits  to  be  utilised  as  taxes?  There  might  not,  but, 
on  the  other  hand,  the  debt  which  the  war  has  piled 
up  might  very  likely  have  been  less  than  half,  perhaps 
not  even  so  much  as  a  quarter,  of  what  it  will  now 
be  when  hostilities  cease.  And  if  this  self-denial  were 
continued  until  the  debt,  whatever  it  might  be,  had 
been  all  redeemed,  would  not  the  prospect  be  immeasur- 
ably brighter  for  us  than  it  can  be  as  things  now  are? 

Unfortunately  we  have  not  yet  been  driven  out  of 
our  hypocrisies,  especially  our  financial  hypocrisies,  by 
the  calamities  of  war.  We  are,  too  many  of  us,  still 
busy  making  profit  out  of  it  more  or  less,  or  planning 
to  do  so.  Many  have  all  along  deliberately  formed  plans 
to  make  large  profits  out  of  the  war  business,  just  as  if 
it  were  ordinary  business  and  not  trading  in  the  life- 
blood  of  the  people.  Nobody,  so  far  as  we  have  ob- 
served, has  squarely  faced  the  problem  which  confronts 
us  when  the  war  ends- — How  are  we  going  to  pay  our 
debts  as  well  as  pay  our  way?  Where  is  the  money 
to  come  from  to  redeem  those  debts,  or  even  to  pay 
the  full  interest  upon  them,  and  at  the  same  time  to 
meet  the  cost  of  demobilisation,  pensions,  re-establish- 
ment, housing,  education,  and  all  the  multitude  of 
■"  wants  "  deemed  necessary  to  our  civilisation? 

Last  year,  for  example,  the  total  interest  charges  on 
the  old  and  new  debt  came  to  about  ;^' 190 ,000, 000,  or 
to  more  than  the  aggregate  of  the  entire  expenditure 
of  the  nation  under  all  heads  at  the  end  of  last  century, 
and  it  will  probably  be  much  heavier  than  this  for  many 
years  after  the  vi^ar  ends  because  the  figure  of 
;£,"! 90,000,000  is  not  the  whole  truth.  Part  of  the 
debt  interest  which  we  are  now  paying  is  concealed  by 
the  credits  taken  on  the  revenue  side  for  interest  owed 
by  the  colonies  and  by  our  Allies,  and  charged  against 
our  advances.  "  Miscellaneous  "  revenue,  for  example, 
has  increased  by  ;^35,632,ooo  in  the  year  just  closed 
compared  with  1916-17,  ;^52, 148,000  in  all  being  last 
year  put  down  to  this  "  jumbled  "  entry.    Now,  of  that 

L^i'^^a, 000,000  odd,  probably  at  least  ^^25, 000, 000  repre- 
sents interest,  &c.,  due  by  our  Allies  and  the  British 
Dominions  abroad  upon  the  loans  and  advances  we 
have  granted  to  them.  Has  that  interest  been  re- 
ceived? Not  in  full  or  in  cash  in  a  single  instance. 
Where,  then,  is  it  hidden  on  the  expenditure  side? 
It  is  probably  added  to  the  capital  of  the  loans  and 
I 


advances,  and  so  buried  in  last  year's  total  expenditure 
of  ;^2, 696, 000,000,  or  tucked'  away  among  the 
;^'2, 495,000,000  set  down  against  "  Supply."  It  will 
be  for,  the  Chancellor  of  the  Exchequer  to  explain.  And 
he  must  eschew  camouflage  in  finance.  There  must  be 
no  glossing  things  over  in  that  field  any  more  than  in 
the  arena  of  warfare.  Let  us  know  what  to  expect  and 
where  we  stand.  We  shall  live  in  danger  of  plunging 
headlong  into  revolution— into  Bolshevism  if  you  like 
— if  we  go  on  make-believing  as  we  have  been  doing 
hitherto. 

Well  might  the  Chancellor  of  the  Exchequer,  in  a 
moment  of  expansive  candour,  hint  at  "  conscription  " 
of  capital.  If  the  leaders  of  the  nation  had  been  wise, 
if  our  patriotism  had  been  genuine  and  out  and  out 
all  through,  our  revenue  would  have  been  twice  what 
it  is,  aye  three  times,  and  we  should  have  been  in  no 
dread.  Rich  and  poor  would  long  ago  have  mingled 
together,  have  stood  shoulder  to  shoulder,  not  merely 
in  trench  or  in  battle  array,  but  in  the  work  to  be  done 
to  make  our  triumph  in  the  war  a  real  emancipation  from 
slavery.  It  would  have  ended  with  a  debt  immensely 
smaller  than  we  are  now  looking  forward  to  having 
to  carry.  And  debt  means  degradation,  always  under 
all  circumstances.  To  escape  that,  to  live  as  freemen 
in  a  world  delivered  from  the  tyrant  and  oppressor,  all 
energies  must  therefore  be  bent,  and  every  buttress  of 
privilege  overthrown.  Is  Mr.  Bonar  Law  the  man  to 
evolve  the  right  plan  ;  to  lay  broad  the  foundations  of 
our  peace  of  liberty,  and  to  adhere  to  it  in  spite  of  every 
form  of  opposition  and  obloquy?  We  shall  be  better 
able  to  say  after  the  Budget.  The  task  before  him 
and  the  Ministry  of  which  he  is  a  member  is  formidable 
enough  to  evoke  sympathy  rather  than  criticism,  and 
provided'  the  right  road  is  selected  we  shall  not  grumble 
too  hotly  should  progress  along  it  be  at  the  outset 
halting  and  slow. 


NOW    READY. 


Pahli.hfd  Mc'ch  21.  I9IS. 


32nd  Year 


Contains     all     the     latest    information 
up  to  within  a  few  days  of  publication. 

THE 

MINING     MANUAL 

AND 

MINING  YEAR  BOOK 

X918 

By   WALTER    R.     SKINNER. 
The    Standard  Reference  Work  on  Mines. 

Price  17/6  net. 

Post  Free  (Inland).   18/-.  Post  Free  (Abroad),   19/- 

1^120  pages.         In  Demy  8vo,  bound  in   RED  Cloth. 

A     Recognised     Indispensable     Work     of      Reference 

for  Mining  Investors,  Mining  Engineers,  Mine  Managers, 

Bankers,  Stockbrokers.  Solicitors,  or  anyone  interested  in 

the  Mining  Industry. 

A  RECORD  OF  INFORMATION  concerning  1  500  Mining  Com' 
panies  operating  in  all  parts  of  the  world.  Gold,  Diamond,  Silver 
Copper,  Tin,  Iron  and  other  Mines,  Collieries  Exploration,  and 
Mining  Investment  Companies,  arranged  in  alphabetical  order. 

PARTICULARS  given  of  each  Company  include  the  Directors  and 
other  officials,  date  of  establishment,  seat  of  operations,  description 
of  the  property,  with  the  purch  se  consideration,  plant  erected  or 
in  course  of  erection,  present  working  results,  ore  reserves,  details 
of  capital,  calls,  dividends  paid,  and  the  financial  position  as  disclosed 
by  the  latest  accounts.  Highest  and  lowest  prices  of  the  shares  for 
the  last  four  years,  also  latest  price. 

Directors  (3,9^5),  Secretaries  (75o),  Mining  and  Consulting  Engineers 
and  Mine  Managers  (i,ooo)  include  their  addresses  and  descriptions 
and  names  of  the  Companies  with  which  they  are  connected. 

SUPPLEMENTARY  INDEX  of  private,  dormant  or  Companies  which 
have  ceased  to  be  of  public  or  market  interest.  One  of  the  most 
useful  and  important  features  of  the  book.  It  is  the  only  list  of  Jts 
kind  published. 

CRUSHING  TABLES  and  Gold  Outputs  from  the  principal  mmes  are 
given  at  the  commencement  of  the  volume,  snowing  tons  treated 
monthly,  results  obtained  and  yield  per  ton  ;  also  annual  yields. 

DICTIONARY  OF  MINING  TERMS.— An  up-to-date  glossary  covering 
440  mining  terms  by  the  use  of  which  mining  developments  can 
easily  be  followed.  The  difficulty  of  understanding  technical 
phraseology  is  thus  easily  mistered. 

To  be  obtained  from  all  Booksellers,  or  direct  from  the  Publishers, 

WALTER  R.  SKINNER,  11-12,  Clement's  Lane,  London,  E.C.4, 

AND  r » n 

"FINANCIAL   TMdES,"  72,  Coleman   Street,     London,  E.C.2. 


34° 


tTbe  Jtivestors'  IRevtew. 


April  6,   1918. 


Revenue  Returns. 

I.— AN  ACCOUNT  OF  THE  TOTAL  REVENUE  OF  THE  UNITED 
KINODOM  In  the  undermentioned  periods  of  the  year  ending 
March  31,  1918,  as  compared  with  the  corresponding  periods 
of  the  preceding  year. 


ISSUES. 


Quarter  Irom  Jan.  i  to  Mar.  31,  1918, 

compared  with  the  corresponding 

quarter  of  the  preceding  year. 


.« 


Customs      

Excise         ..        .; 
Estate,  &e.,  Duties 

Stamps         

Land  Tax 

House  Duty  

Property  and  Income  Tax  (including 

Super-Tax)         

Excess  Profits  Duties,  &c. 
Land  Value  Duties 

Postal  Service       

Telegraph  Service 
Telephone  Service 

Crown  Lands         

Receipts  from  Sundry  Loans,  &c. 
Miscellaneous        


lis? 


o  c  «  ■ 

aw  a 


„   £ 

18,151,000 
10,568,000 
8,481,000 

2,666,000 

605,000 
1,590,000 

171,602000 

71,269,000 

376,000 

8,400,000 

900,000 

1, 9c  0,000 

230,000 

^.337.237 

3.509,025 


19,618,000 
14,890,000 
9,368,000 

2,458.000 

590,000 

1,580,000 

152,640000 

60,092,000 

370,000 

7,850,000 

850,000 

1,800,000 

180,000 

3.233.672 

4.767.299 


306,584262  280,286971 


208,000 
15,000 
lO.COO 

18,962,000 

11,177,0:0 

6,oco 

550,000 

50.00 

100,000 

50,000 

1.103,565 

741,726 


32,973,291  6,676,000 


1 .467,000 

4,322,000 

887,coo 


f  26,297, 291 
Vett  Increase. 


Customs 

Excise  

Estate,  &c.,  Duties         

Stamps         

Land  Tax 

House  Duty 

Property  and  lacome  Tax  (including 

Super-Tax)  

Excess  Profits  Duties,  &c 

Land  Value  Duties*       

Postal  Service        

Telegraph  Service 

Telephone  Service  

Crown  Lands         

Receipts  from  Sundry  Loans,  &c.     . . 
Miscellaneous        


Year  ending  March  31,  19:8,  compared 
with  the  corresponding  Period  of  the 
preceding  Year. 


o^ 


£ 

71,261,000 

38,772,000 

31,674,000 

8,300,000 

665,000 

1,960,000 

239509000 
-2203140  0 
685,000 
25,200,000 
3,500,000 
6,600,000 
690,000 
6,056,250 

52.148.315 


£ 

70,^61,000 
56,380,000 
31,232,000 
7,878,000 
640,000 
1,940,000 


£ 
7oo,oco 

442,000 
422,000 

25,000 

2C.O0O 


139,920000  80, 

521.000 

24,350,00c 

3,350.00c 

6,400,000 

650,000 

8,055,817 

16,516,765 


476,000 

,t94,ooo 
164,000 
850,000 
150,000 
200,000 
40,000 


35,631,550 


707.234.^65  573.427582  1153,414,550 


17,608,000 


1.999.567 


19,607,567 


:fi33.8o6,983 
Nett  Increase. 


11.— AN  ACCOUNT  showing  the  RECEIPTS  Into  and  ISSUES  out 
of  the  EXCHEQUER  in  the  year  ending  Mar.  31.  1918,  as 
compared  with  the  corresponding  period  of  the  preceding  year. 


RECEIPTS. 


Balances  in  Exchequer  on  April  i : 

Bank  of  England 

Banlt  of  Ireland       


Revenue,  as  shown  in  Account  I 

Advances  Repaid — 

Bullion 

Interest    on    Exchequer    Bonds    under    the 
Capital  Expenditure  (Monev)  Act,  1904 
Money  Raised  bv  Creation  of  Debt— 
Under  the  Telegraph  (Money)  Act,  1913 
Under  the  Post  Olfioe  (London)  Railway  Act, 

1913 

Under  the  Military  Works  Acts,  iSgr  to  190J. . 
Under  the  Public  Buildings   Expenses  Act, 

1903 

Under  the  Housing  Act,  1914 

By  Treasury  Bills  for  Supply 

By     Exchequer    Bonds    under   the    Capital 

Expenditure  (Money)  Act,  1904 
By    Exchequer    Bonds    under    the    Cunard 

Agreement  (Money)  Act,  1904 

By  4J  per  Cent.  War  Loan,  1935-1945  .. 
By  5  per  Cent.  Exchequer  Bonds,  1919 
By  5  per  Cent.  Exchequer  Bonds,  1920. . 
By  5  per  Cent.  Exchequer  Bonds,  igai 
By  5  per  Cent.  Exchequer  Bonds,  1922. . 
By  6  per  Cent.  Exchequer  Bonds,  1920. . 
By  3  p«r  Cent  Exchequer  Bonds,  1930 
By  War  Expenditure  Certificates 
By  War  Savings  Certificates 
By  other  Debt  created  under  the  War  Loan 
Acts,  1914  to  1917  .. 

®?-*  ^\S^"\-  ^"'  ^°»"'  »9a9-i94»,  aid  5  p4r 
Cent.  War  Loan,  1020-1047        ="  '         -"^ 

By  National  War  Bonds   V.        .. 
East  Africa  Protectorate  Loan— 

Repayment    on    account   of    Principal    and 
Interest  "^ 


CuNARD  Loan — 

Repayment  on  account  of  Principal     . . 
Suez  Canal  Shares — 

Drawn  and  Paid  Off  

China  Indemnity  

Amounts  Temporarily  Borrowed — 

On  the  Credit  of  Ways  and  Means— 

By  Treasury  Bills        

By  other  Advances 


Year 
ending 
Mar.  31, 

191S. 


£ 

85,209,947 
1,225,912 


=6,435,859 
707,234,565 

2,710,000 

169,818 

165,000 

95,000 


455,900 
2,803,465,000 


82,270,400 

48,000 

13,021,200 

63,200/)00 

721,504,198 

168,082,620 

6i4,2i5,coo* 

5.940 
130,000 

12,797 
379,314 


'■030.374.853 


6.23i.»74.364 


Year 

ending 

Mar.  31, 

'9I7.. 


£ 
25,111,065 
463,94' 


25,575,oc6 
573,427,582 

3,Slo,coo 

91.370 

270,000 

234,000 
8,824 

8,000 

131,400 

'■785,955,000 

3,087,600 

424 
34,262,604 
84,140,469 
62,495,527 

160,951,700 

»9,878,5co 
72,750,000 

331,895,881 

780,376,710 


5,940 
130,000 


10,795 
407,930 


345,000,000 
73'.5'^.500 


Expenditure— 

Permanent  Charge  of  Debt 

Interest,  &c.,  on  War  Debt 

Payments  to  Local  Taxation  Accounts,  &c. 

Other  Consolidated  Fund  Services 

Supply  Services 

Total  Expenditure  chargeable  against  Revenue 
Advances — 

Bullion         

Interest  on  Exchequer  Bonds  under  the  Capital 

Expenditure  (Money)  Act,  1904      

Issues  to  meet  Capital  Expenditure — 
Under  the  Telegraph  (Money)  Act,  1913 
Under  the  Post  Office  (London)  Rail,vay  Act,  1913. 
Under  the  Military  Works  Acts,  189710  1903 
Under  the  I'ublic  Buildings  Expenses  Act,  1903., 

Under  the  Housing  Act,  1914 

Redemption  of  Unfunded  Debt — 

Treasury  Bills  for  Supply         '. 

Exchequer  Bonds  under  the  Capital  Expenditure 

(Money)  Act,  IC04       

Exchequer  Bonds  under  the  Cunard  Agreement 

(Money)  Act,  1904        

War  Loans,  Exchequer  Bonds,  &c-,  under  Sec- 
tion 34  of  the  Finance  Act,  1917      

War  Expenditure  Ccrti6cates  under  the  War  Loan 

Act,  1916 

Other  Debt  under  the  War  Loan  Acts,  1914  10  1917 
Depreciation  Fund — 

Under  the  Finance  Act,  1917 

Old  Sinking  Fund,  1^7-8— 

Issued  under  Section  g  of  the  Finance  Act,  1908. . 
Old  Sinking  Fund,  igio-ii — 

Issued  under  the  Finance  Act,  1911 : — 

Section  16  (1)  (6)  

Old  Sinking  Funds,  1911-12  and  1913-14— 

Issued  under  the    Anglo-Persian  Oil   Company 

(Acquisition  of  Capital)  Act,  1914 

East  Africa  Protectorate  Loan  Repayments— 

Issued  to  reduce  Debt  under  the  Finance  Act,  1911 
Cunard  Loan  Repayments— 

Issued  to  reduce  Debt  under  the  Cunard  Agree- 
ment (Money)  Act,  1904        

Suez  Canal  Drawn  Shares — 

Issued  to  reduce  Debt  under  the  Finance  Act,  1898 
China  Indemnity — 

Issued  to  reduce  Debt  under  the  Finance  Act,  1906 
Temporary  Advances  Repaid— 
Advances  on  the  Credit  of  Ways  and  Means— 

Treasury  Bills        

Other  Advances 


Balances  in  Exchequer- 
Bank  of  England 
Bank  of  Ireland . . 


19,827,613 

170.023,453 

9,730,538 

1,670,481 

2,494,969.320 


1918. 

1917. 

Mar,  31. 

Mar.  31. 

£ 

£ 

19.361.578 

25.209.947 

1,668,452 

1,225,914 

Year 
ending 
Mar.  31, 

1918. 


Year 
endiog 
Mar.  31, 

19'7. 


19,783.375 

107,467,119 

9,895.466 

',973,697 

2,058,993,053 


2,696,221,405 

2,920,000 

169,818 

165,000 
95,000 

455.900 
2,2945800004 

i,300,coo 

22  915,637 

628,700+ 
101,069,033 

34,580,290 

10,000 

27,500 

949,9Co 
5.940 

130,000 

12.797 

378,314 

1,055,630,000 


2.198,112.710 

3,770,000 

9'.J70 

270,030 

234,000 

8,0*8 

8,000 

l30,7ro 

i,888,226,coo 

3,087,600 

1.285,705 

6,3'7.500^ 
18,605,98} 

94,000 

:3,i6o 

250,000 
5. 940. 

130,000 

'0,795 

407.930 


345,000,000 
533.949.500 


6,212,244.334 


91,030,030 


6,233.274  364 


5,ooo,04<>903. 


26,435.8:9' 


5,026,484,762 


*  Excluding  sales  through  Joint  Stock  and  Private  Banks  not  yet  brought  to 

account. 

f  Including  part  payment  of  Bills  and  Certificates  tendered  as  subscriptions- 
to  National  War  Bonds. 
Treasury,  Mar.  31,  1918. 


5.016,484,762 


Canadian  Railway  Prospects. 

Although  the  common  stock  of  the  Canadian  Northern  Rail- 
way is  privately  held,  and  the  public  is  not  pecuniarily  con- 
cerned with  the  work  of  the  arbitrators  dealing  with  the  Govern- 
ment's purchase  of  the  sitock  as  a  holder  of  a  large  stake  in  the 
undertaidng  in  ihe  form  of  $24,139,000  income  charge  debenture 
stock,  upon  which  no  dividend  has  been  paid  since  1915,  and  a 
vast  amount  of  debenture  debt,  it  is  greatly  interested  in  the 
development  of  the  line  and  in  the  recently  sanctioned  increase 
in  rates.  With  the  cost  of  railway  operations  in  the  Dominion 
so  greatly  on  the  increase,  any  estimate  of  the  position  in  the 
ordinary  way  would  naturally  have  been  but  a  very  approximate 
one,  and  as  the  accounts  for  the  financial  year  ended  June  last 
have  not  yet  made  their  appearance,  any  forecast  is  likely 
to  be  somewhat  wide  of  the  mark.  Although  it  is  impossible, 
however,  to  make  anything  approaching  an  accurate  estimate. 
It  is  interesting  and  illuminating  to  consider,  with  the  aid  of 
what  data  there  is  available,  what  the  position  of  the  under- 
taking is  likely  to  be  in  the  light  of  the  recently  sanctioned 
increase  in  tariffs.  For  the  calendar  year  1917  gross  receipts 
came  out  at  $41,470,000  and  nett  receipts  at  $7,441,400,  but  the- 
expense  ratio  was  only  82  per  cent.,  and  in  view  of  the  fact 
that  the  average  for  the  last  six  months  of  the  period  came 
out  at  nearly  85  per  cent.,  and  of  the  considerable  increase  in 
the  final  month  of  the  year,  and  of  the  strong  possibility  of  a 
further  large  increase  in  the  wages  bill  this  year,  it  would  be 
as  well  in  estimating  expenditure  for  1918  to  assume  a  ratio 
to  receipts  of  90  per  cent.  On  the  assumption,  therefore,  that 
the  present  year  closes  with  neither  a  gain  nor  a  shrinkage  in 
receipts,  the  basis  of  our  calculation  is  a  gross  annual  revenue 
of  $41,470,000  (old  tarifi).  It  is  not  quite  clear  whether  an 
increase  of  15  per  cent,  in  the  tariff  has  been  granted  all  round, 
but  if  the  Canadian  Government  have  simply  given  effect  to 
the  award  of  the  Railway  Commission,  the  new  tariff  as 
regards  freight  rates  in  the  West  is  restricted  to  10  per  cent. 
Assuming  an  average  increase  of  I2j4  per  cent,  on  all  classes 
of  traffic,  with  the  exception  of  miscellaneous  traffic,  which  we 
will  estimate  at,  say,  10  per  cent.,  gross  receipts  would  come 
out  at  $46,135,375.  Expenditure — 90  per  cent,  of  the  1917 
receipts  (old  tariff) — would  come  out  at  $37,323,000  and  nett 
receipts  a*  $8,812,375.  The  actual  amount  required  to  meet 
interest  on  fixed  charges  and  on  loans  is  not  known,  but  from 
statistics  compiled  from  the  official  statements  submitted  to  the 


April  6,   1918. 


^be  Jnvestors'  1Rev>tew» 


341 


Canadian  Parliament  last  year  it  would  appear  that  there  were 
outstanding  as  at  June  last  fixed  charges  to  the  total  amount 
of  $251,494,000  and  short  term  loans  and  notes  amounting  to 
$110,200,000.  The  interest  requirements  of  the  fixed  charges 
we  calculate  to  be  about  $9,915,000.  In  the  case  of  the  short 
term  loans  and  notes  the  interest  can  only  be  very  roughly 
estimated,  but  if  we  assume  an  average  rate  of  5  per  cent.,  it 
is  probably  not  so  wide  of  the  mark.  This  would  bring  total 
interest  charges  up  to  $15,425,000.  Clearly  the  prospect  before 
the  income  charge  debenture  stockholders  is  dismal  in  the 
extreme,  unless  the  Canadian  Government  come  to  their 
assistance. 

The  estimated  position  will  be  clearly  seen  from  the  following 
statement  : — 

« 

Gross  receipts 41,470,000 

Less,  say,  10  per  cent,  niiscellaneous  tratSc 4,147,000 

Total  freight  and  passenger  traffic,  say  37,323,000 

1 2j  per  cent,  increase  on  this  would  amount  to 4,665,375 

And  total  gross  receipts  would  approximate  to 46,135,375 

Working  expenses  (say,  go  per  cent,  of  the  1917  receipts)    37,323,000 

8,812,395 
Add,  say,    $1,075,000  for  miscellaneous  earnings  from  subsidiary 

companies  interest  on  investments 1,075.000 

9.887,373 
Estimated   fixed  interest   charges  and   interest   requirements    of 

short  dated  loans 15,425,000 

Permission  to  increase  freight  and  passenger  rates  has  also 
been  extended  to  the  Canadian  Pacific  Railway,  but  the  pro- 
prietors of  this  undertaking,  on  account  of  its  marked  and 
exceptional  prosperity,  are  to  fare  differently  to  those  of  the 
other  two  transcontinental  enterprises.  By  the  terms  of  the 
special  Order  in  Council  issued  by  the  Railway  Board,  one-half 
of  the  nett  earnings  in  excess  of  7  per  cent,  on  the  common 
stock  are  to  be  handed  over  to  the  Canadian  Treasury,  while 
in  addition  "  a  special  income-tax  on  certain  conditions,"  the 
meaning  of  which  is  not  clear,  is  to  be  imposed.  If  the  increase 
in  rates  was  more  than  commensurate  with  the  present  and 
prospective  increase  in  working  expenses  shareholders  would 
have  little  cause  for  dissatisfaction  ;  but,  as  it  is,  they  cannot 
but  help  feeling  that  they  are  to  a  large  extent  being  mulcted 
for  the  purpose  of  assisting  the  other  two  needy  transcontinental 
enterprises.  During  the  last  few  months  the  ratio  of  operating 
expenditure  to  receipts  has  advanced  enormously.  In  October 
it  worked  out  at  65.70  per  cent.,  8.60  per  cent,  higher  than 
that  of  the  corresponding  month  of  the  previous  year.  By 
December  it  had  risen  to  70.10  per  cent.,  10.50  per  cent,  in 
excess  of  that  of  the  corresponding  month,  while  in  January 
it  rose  to  the  extraordinarily  high  figure  of  89.17  per  cent.,  an 
increase  of  13.12  per  cent,  on  the  corresponding  1916  figure. 
With  the  tendency  of  expenses  to  further  increase,  the  ratio  for 
the  year  may  well  come  out  at,  say,  84  per  cent.  We  estimate 
below  the  revenue  position  in  1918  on  the  supposition  that  the 
ratio  of  expenditure  to  receipts  is  as  much  as  84  per  cent.  ;  that 
the  volume  of  traffic  handled  is  the  same  as  in  191 7,  and  that 
the  average  increase  in  freight  and  passenger  rates  comes  out 
at  12%  per  cent. 

• 

Gross  receipts,  1917    152,388,000 

Deduct,  say,  10  per  cent,  for  miscellaneous 15,238.000 

Total  freight  and  passenger  traffic    137,150,100 

12  J  per  cent  on  this  would  be 17.143,760 

Total  gross  revenue   159,532,760 

Working  expenses  (assumed  ratio  to  1917  receipts,  84  per  cent.). . . .    128,006,760 

41,526,000 
Deduct  interest  and  other  charges 10,229,000 

,  J.        ..  ;,  31.297.000 

4  per  cent,  preference  dividend 3.228,000 

28,069,000 

7  per  cent,  dividend  on  common    18.200.000 

5o  per  cont.  of  this  to  Canadian  Government   g. 869. 000 

Add  7  per  cent,  dividend  on  common  l8,2co'ooo 

Add  miscellaneous  income  as  in  1917 8.744.000 

„      .     ,  31,878,300 

Equivalent  to  11.23  per  cent,  on  common  stock. 

Shareholders  have  the  consolation  of  knowing  that  their  10 
per  cent,  dividend  is  not  likely  to  be  in  jeopardy,  but  they  will 
at  the  same  time  appreciate  the  "milking"  character  of  the 
Dominion    Government's   latest  fiscal   departure. 


Insurance    News. 

The  results  announced  by  the  Scottish  Provident  Institution 
for  1917,  although  not  quite  as  favourable  as  those  submitted 
for  1916,  were  still  quite  satisfactory  considering  that  the  bulk 
of  the  insurable  portion  of  the  population  is  engaged  in  the 
war.  New  proposals  for  capital  sums  amounting  to  jf  1,255,607 
were  completed,  the  nett  amount  retained  being  ^1,141,707,  a 
nett  decrease  of  ;f259,8j6.  Premiums  of  all  kinds,  including 
the  price  of  annuities,  came  to  a  nett  sum  of  ,^789,213,  a 
decrease  of  ;,i'io,i75,  while  the  total  receipts,  including  interest, 
were  ^1,374,220,  an  increase  of  ;,^2,i36.  Last  year  there  was 
again  a  large  addition  to  the  war  claims;  under  1,095  policies 
by  the  deaths  of  824  members  ^f  887,786  was  paid,  but  this  total 
was    ^^69,393    below   the    corresponding    figure    for    1916.     At 

L December  31  the  accumulated  funds  stood  at  ji'i6,i29,oo2-^a 
decrease  of  ^46,638,  due  to  the  fact  that  it  was  thought  desir- 
able to  write  off  at  the  present  time  a  further  sum  of  ;^  135 ,000 
from  securities. 
During  1917  the  English  and  Scottish  Law  Life  Assurance 
Association  granted  new  assurances  for  ^^250,470,  an  increase 
°i  .ii^"i776  over   the  figures  for  1916,  but  as  a  slightly  larger 


than  in  the  previous  year  at  ;;;228,47o.  The  total  nett  premium 
income  was  ;,f22i,456— a  reduction  of  ;^2,s73.  Expenses  of 
management,  including  commission,  were  siibstantially  lower, 
and  their  ratio  to  premium  income  exhibited  a  satisfactory 
reduction.  Claims  by  death  at  .^179,971  were  ;^i8,478  higher 
than  a  year  ago,  but  the  total  was  within  the  amount  expected 
and  provided  for,  notwithstanding  the  inclusion  of  about 
^^■20,470  directly  attributable  to  the  war.  As  the  result  of  the 
year's  operations  £1(1,760  was  added  to  the  total  funds,  which 
now  stand  at  ;^3, 060,000.  The  average  rate  of  interest  earned 
on  the  funds  was  £4  i8s.  8d.  per  cent,  gross,  an  increase  of 
4s.  6d.  per  cent.,  and  ^'4  is.  2d.  per  cent,  nett,  an  increase  of 
3s.    per  cent. 

According  to  a  decree  issued  by  the  Council  of  People's  Com- 
missioners all  Russian  insurance  societies  are  pl.aced  under 
State  control.  The  figures  of  the  State  Budget  for  1917  show 
cash  receipts  of  21,950,000,000  roubles,  of  which  sura 
16,000,000,000  roubles  is  represented  by  bank  notes  issued  in 
the  course  of  .the  year.  As  the  expenditure  is  given  at 
28,503,000,000  roubles,  there  was  a  nett  deficit  of  some 
6,500,000,000  roubles. 

The  Overseas  Marine  Insurance  Co.  has  just  issued  its  first 
balance-sheet.  The  business  transacted  during  14  months  was 
comparatively  small,  but  quite  sound,  and  after  deducting 
claims  and  other  liabilities  the  directors  are  able  to  put  aside 
to  the  underwriting  reserve  fund  the  sum  of  ^62,610.  At 
December  31  the  assets  amounted  to  .ii^93,555,  against  which 
only  jf94i  was  due  to  sundry  creditors.  It  has  been  decided  to 
acquire  the  English  business  of  the  Volga  Insurance  Co.,  of 
Petrograd,  this  company  having  been  established  in  this 
country  for  several  years.  The  Paris  agency  of  the  Overseas 
Co.  has  been  put  on  an  entirely  new  footing,  which  will  secure 
to  the  company  the  closest  control  over  the  French  business. 

The  operations  of  the  Wesleyan  and  General  Assurance 
Society,  in  common  with  other  life  offices,  were  adversely 
affected  throughout  the  past  year  by  the  war.  Not  only  was 
the  large  sum  of  ;f  75,700  (against  ,^10,722  in  the  previous  year) 
paid  in  direct  war  claims,  but  lives  of  advanced  age  again 
exhibited  a  rate  of  mortality  considerably  in  excess  of  that 
anticipated,  attributable  to  the  strain  and  anxiety  which  the 
war  has  caused.  The  disclosure  of  a  valuation  deficiency  in 
the  industrial  depart-nient  has  been  carefully  considered  by  the 
directors  in  relation  to  its  causes,  and  in  view  of  the  special 
nature  of  those  causes  they  are  not  disturbed  as  to  the  ultimate 
ability  of  the  society  to  meet  the  whole  of  its  existing  obligations 
in  full.  The  total  premium  income  of  the  year  was 
;f  1,052, 974 — an  increase  of  ;^2,686 — while  the  total  income,  in- 
cluding nett  interest,  was  ;^'i,i63,4io,  showing  an  increase  of 
jf3i,67i.  Claims,  including  surrenders,  came  to  ;f548,449,  or 
£^7'SSS  more  than  in  1916.  By  an  addition  of  ^^231, 270  the 
total  assets  were  raised  to  ;^3, 108,490.  During  the  year  the 
amount  invested  in  War  Loans  was  ;^383,598,  raising  the  total 
so  invested  to  ;^90i,639. 

The  Ocean  Accident  and  Guarantee  Corporation's  revenue  for 
1917  amounted  to  ;/^3, 304,091,  an  increase  of  ;^676,047  over  the 
total  for  igi6,  while  claims  paid  and  outstanding  at  ;^i,649,327 
showed  an  increase  of  ^^380, 196.  Investments  and  other  assets 
now  stand  at  ^,^4,898,953,  having  increased  during  the  year  by 
;^77i,o8o.  The  expense  ratio  was  reduced  by  nearly  2  per  cent. 
Revenue  account,  including  the  proportion  of  premiums  un- 
earned (^^1,105,709  against  ;^932,i5o),  showed  a  balance  of 
;^2,7o3,94g,  an  increase  of  ;^4o7,865,  out  of  which  the  directors 
add  ;^i7,g68  (against  ^^42,306)  to  the  investment  reserve  and 
general  contingency  fund,  raising  it  to  ;^285,ooo. 


Cheese  Making  in  South  Africa. — No  South  African  in- 
dustry gives  cause  for  greater  satisfaction  than  does  that  of 
cheese  making,  which  has  gone  ahead  by  leaps  and  bounds 
since  the  war  began.  No  less  than  14  new  factories  have  been 
opened  in  Natal  and  East  Griqualand  during  the  past  twelve 
months.  The  output  to-day  practically  fulfils  the  whole  of 
South  Africa's  requirements.  With  the  vieiv  of  gaining  an.  idea 
as  to  the  prosp-ects  of  exporting,  one  of  the  manufacturers  in 
East  Griqualand  recently  sent  a  trial  shipment  to  this  country 
for  which  he  secured  the  high  figure  of  is.  8d.  ,per  lb. 

South  African  Dyes. — The  new  wattle  extract  factory  at 
Merebank,  near  Durban,  Natal,  is  nearing  completion.  Equip- 
ment is  almosit  complete,  and  production  of  extract  may  be 
looked  forward  to  in  the  near  future. 


AUSTRALIAN 
MUTUAL  PROVIDENT 

Estd.  SOCIETY.  'S-'S. 

The    Largest    Mutual   Life    Office   in    the    Empire. 

Funds,  £38,000,000.  Annual  Income,  £5,000,000. 

MODERATE     PREMIUMS. 

LIBERAL     CONDITIONS. 

WORLD-WIDE     POLICIES. 
Every  Year  a  Bonus  Year.    Whole-life  Policies,  20  years  in  force,  show 
average  increase  of  the  sum  assured  by   Bonus  exceeding  50  p*r  orat. 
Endowment  Assurance  Results  also  Unsurpassed. 

37,Thpeadneedle  St.,  London,  E.C.  2. 


^be  3nve8tot8'  IRevtew. 


342  NH^W     JIIVWOIVIO      IIXWVICW.  April  6,  1918. 

Canada  Steamship  Lines,  Limited,  Montreal 

Summary  of  the  Report  of  the  President  and  T)irectors  for  the 

year  ending  Dec.   31,    1917. 


London  Advisory  Committee  ; 

COMMANDER  SIR  A.  TREVOR  DAWSON,  R.N.,  Chairman. 

LIEUT.-COLONEL  W.  GRANT  MORDEN,  Deputy  Chairman. 

SIR  VINCENT  CAILLARD.  ALBERT  VICKERS. 

SIR  MITCHELL   MITCHELL-THOMSON,  Bart.  LT.-COL.  C.  G.  BRYAN. 

LT.-COL.  SIR  H.  MONTAGU  ALLAN,  C.V.O. 

T.  J.  FELLOWES  BROWN,  Secretary. 


TO  THE  SHAREHOLDERS  OF  CANADA  STEAMSHIP  LINES,  LIMITED.— Your  Directors 
beg  to  submit  to  you  their  Fourth  Annual  Report  and  Statement  of  Accounts.  The  statements  presented 
herewith  show  that  the  Company  has  had  a  satisfactory  year.  You  will  observe  that  while  the  gross  earnings  are 
higher  than  last  year,  the  net  earnings  are  slightly  lower.  This  is  accounted  for  by  the  enormous  increase  in  the 
cost  of  everything  that  enters  into  the  operations  of  such  an  undertaking. 

Your  Directors  are  pleased  to  be  able  to  advise  that  the  vessel  tonnage  owned  by  your  Company  is  greater 
than  it  was  last  year,  despite  the  losses  that  have  occurred. 

Your  Directors  and  Management  are  convinced  that  the  Company  has  a  promising  field  for  development  and 
expansion  on  the  high  seas. 

During  the  year  a  vacancy  occurred  in  the  Directorate,  through  the  resignation  of  Mr.  R.  M.  Wolvin,  which 
vacancy  was  filled  by  the  appomtment  of  Mr.  H.  W.  Cowan,  Operating  Manaf^er,  to  the  Board. 

The  deferred  dividends  on  the  Preference  Shares  of  the  Company  have  been  paid,  and  it  has  been  decided 
that  the  quarterly  payments  of  these  dividends  will  be  resumed. 

All  the  properties  of  the  Company  have  been  thoroughly  maintained,  and  the  Company's  fleet  is  in  a  better 
state  of  efficiency  than  it  was  at  any  other  time. 

The  whole  respectfully  submitted. 

JAMES  CARRUTHERS,  President. 

OPERATING  ACCOUNT  for  the  year  ended  31st  December,  1917. 

Operating  Revenue  : 

Vessels 812,887,256.23 

Docks  and  wharves ,   183,772.27 

Miscellaneous 290,393.74 


»13, 361.422.24 
Other  Revenue      172,393.70 


Total  Revenue $13,533,815.94 

Expenses      9,509,951.47 


Net  Earnings      »4,023, 864.47 

From  which  deduct : 

Interest  on  Mortgage  Bonds         890,729.86 

Interest  on  Debenture  Stock         301,575.03 

Other  Interest           5,721.23 

Special  Bonus  to  Employees        35,294.53 

Reserve  for  Depreciation .^        1,061,563.37 

Reserved  for  Doubtful  Debts  and  Claims        25,579.29 

Directors'  Fees         25,000.00 

Reserve  for  Business  Profits  War  Tax              300,000.00           1,845,463.31 


Profit  for  Year  J2, 178, 401. 16 

SURPLUS  ACCOUNT  as  at  31st  December,  1917. 

Balance  as  at  31st  December,  1916        81,848,225.27 

Add: 

Profit  for  year  ended  31st  December,  1917,  as  per  Operating  Account 82,178.401.16 

Net  Profit  on  Sales,  &c.,  of  Fixed  Assets     941,879.95  3,120,281.11 


Deduct  : 

Proportion  of  Organisation  Expenses  charged  off 886,820.41 

'  Balance  of  Discount  on  Debenture  Stock  charged  off        27,765.19 


84,968,50638 


8114,585.60 


Dividends  on  Preferred  Stock  : 

12. 83i%,  being  arrears  to  31st  Dec,  1916      81,604,166.66 

7%  for  the  year  ended  31st  Dec,  1917  875,000.00      2,479,166.66      2,593,752.26 


Surplus  as  per  Balance  Sheet         82,374,754.12 


COPIES  of  the  FULL  REPORT  may  be  obtained  at  the  Company's  London  Agency,  29,  GREAT  ST.  HELEN  S,  B.C.  3. 


April  6,   1918. 


^he  Jnveetocs'  IRevtew. 


343 


SGOniSH  UNION  &  NATIONAL 

INSURtNCE  COHPtNV. 

ESTABLISHED    1824, 

ASSETS    exceed    £1 1 ,000,000. 


TIRE  (INCLUDING  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  GLASS  BREAKAGE,  TRANSIT  OF 
SECURITIES,   FIDELITY,  PROPERTY  OWNERS'   LIABILITIES,  HORSE  DRIVING 

ACCIDENTS,  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh:  3S,  St.  Andrew  Square. 
London :  3,  Walbrook,  E.G.  4,  and  i,  St.  James'  St.,  3.W.  1. 


ASSURANCE   COMPANY 
LIMITED, 


cebixtxzk: 

Established  1782. 

Head  Office:  PHSNIk  HOUSE,  KING  WILLIAM  STREET,  LONDON,  E.C.  4. 

Total  Assets  Exceed  i5X7,000,000. 

Claims  Paid  Exceed  £100,000,000. 

Chairman-RT.  Hon.  LORD  GEORGE  HAMILTON,  P.C,  G.C.S.I 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

Loas  of  Profits  following  Fire,  Workmen's  Compensation,  Fidelity  Guarantee, 
Burglary,  Trustee  and  Executor,  &c. 
Prospectuses  and  Proposal  Forms  may  be  obtained  on  application  to  any  of 
the  Branch  OfEces  or  Agencies,  or  to  the  Head  Offices 

General  Manager        -        SIR  GERALD  H.  RYAN. 

ROYAL  EXCHANGE  ASSURANCE. 

Incorporated  A. D.  1720.  Governor;  Vivian  Hugh  Smith, Esq. 

FIRB.  LiIFE.  SEA.  ACCIDENTS.  MOTOR-CAR.  PI/ATE 
OliASS.  BURGLiftRY.  ANNUITIES.  FIDEIiITY  GUARAN- 
TEEg.  EMPLOYERS'  IjIABILITY.  LIVE  STOCK.  THIRD 
PARTY.  IiIPT,  BOILER  AND  MACHINERY.  TRUSTEE 
AND    EXECUTOR    BUSINESS. 

Th^Secremry  }   "«""*  Office-ROYAL    EXCHANGE.    LONDON.  E.C.  3. 


THE  PROVIDENT  ASSOCIATION  OF  LONDON 

LIMITED. 

Provident  House,  Bishopsgate,  London,  E.C.  2. 

Founded  1877. 

Authorised   by  Act  of  Parliament,  Intituled 

Providewt    Association   of    London    Act,   igio. 


invested  Funds 


£6,822,535. 


^'^  ■— '  J '^  ^  ^  » '— "— 

Total  Advances  upon  House  Property  to  P«jlicy-holders  and 
CertificaLe-holders  exceed 


8^ 


IVEIX^I/IOM^S. 


W.  W.  BENHAM.l      Joint 
J.  J.  GREEN,  iManagers. 

Provident  House,  Bishopsgate,  I-ondon,  E.C.  2. 


JLbc  a^nvcBtors'  1Rev?iew. 

Money    and    Credit    Notes. 

3ank  Rate  5  per  Cent.    (Reduced  from  5I  percent,  on 
Thursday,  April  5,  19x7.) 

Norfolk  House,  Friday  Evening. 
-  Something  faintly  approaching  to  an  old-fashioned  squeeze 
flitted  a<:ros.s  the  Money  market  at  the  end  of  last  week.  Money 
was  in  demand,  and  applications  .at  the  Bank  were  of  sensible 
amount.  Consequently  money  rose  in  the  open  market  to  3^4^ 
per  cent,  for  day-to-day  loans.  Discount  rates,  however,  were 
only  affected  to  the  extent  of  -j^  or  so,  and  when  business  was 
resumed  on  Tuesday  the  market  immediately  fell  back  into 
ease. 

No  wonder,  for  the  Hank  return  issued  on  Thursday  showed 
a  formidable  increase  in  its  resources.  Other  deposits  have 
risen  by  ;f  12,724,000,  and  are,  at  ;^i 50,273,000,  ;^2i, 304,000 
larger  than  they  were  a  year  ago.  The  money  has  come  mostly 
from  a  depletion  of  the  public  or  Government  dejxjsits,  which 
have  receded  ^7,5155,000.  Another  .,^3,357,000  was  provided  by 
an  increase  in  the  Governiiient  securities,  and  other  securities 
are  ;fi.i3i,ooo  up.  Also  the  reserve  is  ^637,000  larger  owing 
to  an  increase  of  ;f8i8,ooo  in  the  stock  of  coin  and  bullion, 
counterbalanced  only  to  a  small  extent  by  the  expansion  in  the 
active  note  circulation. 

Thus  the  market  is  easy,  and   yesterday  bills  due  within  the 

L current  month  were  bought  at  3t\  per  cent.,  i-pd  the  quotation 
tor  May  and  June  bank  paper  was  only  3^  per  cent.  It  amounts 
to  little  one  way  or  another. 
Like  ourselves,  the  French  Government  has  to  devote  a  certain 
amount  of  money  to  prevent  the  price  of  Rentes  from  falling. 
In  the  first  quarter  of  the  current  year  the  amount  thus 
assigned     to     what    we    call     depreciation    has     been     about 


That   is   a   good    round    sum   no  doubt,    but   substantially   less 
than  the  .same  necessity  has  thrust  upon  us. 

By  its  latest  advance  of  $200,000,000  to  the  British  Govern- 
ment the  I'nited  States  is  now  our  creditor  to  the  tune  of 
$2,720,000,000,  or  about  ;^55o,ooo,oo<i.  Its  loans  to  the  whole 
of  the  Allies  amount  to  about  ;f  1,033,000,000  sterling,  or 
15,161,000,000. 

The  Treasury  has  decided  no  longer  to  provide  the  funds 
required  to  pay  the  interest  on  the  Russian  loans  held  in  this 
country,  and  the  British  and  French  Governments  have  issued 
a  joint  declaration  of  their  policy  as  regards  the  Russian  re- 
pudiation of  their  borrowings.  But  it  'should  be  noted  that 
while  the  French  Government  has  subscribed  to  the  views  of 
the  British  Govermnent  in  this  matter — which  are  indisputable 
— it  has  not  gone  to  the  length  of  refusing  to  provide  further 
funds  to  meet  the  coupons  on  Russian  bonds.  -On  the  contrary, 
it  has  introduced  legislation  to  enable  the  Government  to  go  on 
paying  the  interest  on  these  bonds  held   in  France. 

A  committee  has  just  been  formed  in  Paris  to  protect  French 
interests  in  Russia,  other  than  those  represented  by  State  loans. 
The  committee  includes  representatives  of  the  banking  and  in- 
dustrial community,  and  is  presided  over  by  M.  de  Verneuil, 
late  Syndic  of  the  Agents  de  Change.  The  banks  represented 
on  the  committee  include  the  Banque  I'rauQais  pour  le  Com- 
merce et  I'Industrie,  the  Banque  de  Paris  et  des  Pays  Bas, 
Banque  des  Pays  du  Nord,  the  Credit  Lyonnais,  the  Societe 
Generale,  and  the  Comptoir  National  d'F.scompte. 

There  has  been  a  sharp  relapse  in  sterling  in  all  the  European 
neutral  centres  this  week.  The  Spanish  exchange  has  touched 
the  fresh  low  level  of  r8.43  pesetas  to  the  pound  ;  this  is  to  be 
attributed  to  the  delay  in  putting  into  effect  the  loan  arrange- 
ments made  with  the  liank  of  Spain  referred  to  some  time  ago. 
Christiania  has  fallen  i-j}i  points  to  14.92L  kr.,  Copenhagen  15 
points  to  15.15  kr.,  Stockholm  10  points  to  14.00  kr.,  and  Berne 
30  points  to  20.40  fr.  The  decline  in  these  exchanges,  how- 
ever, is  likely  to  be  followed  by  a  speedy  recovery  for  the  special 
rate  allowed  here  on  foreign  balances  is  understood  to  be  work- 
ing very  effectively.  The  lira  has  depreciated  afresh,  despite 
the  control  arrangements,  and  is  now  quoted  at  41.90  hre  to 
the  pound.  The  Paris  exchange  has  improved  in  favour  ot  our 
Ally,  the  French  having  now  to  pay  only  27.194  frs.  for  the 
pound  sterling.  Sterling  in  Amsterdam  will  now  only  purchase 
lo.iai  florins,  a  decline  of  15  points  on  the  week. 
Silver. 

The  silver  market  has  been  dull,  and  the  cash  price  for  bars 
has  fallen  back  to  45^d.  per  oz.  There  has  not  been  much 
business  doing,  for  owing  to  the  Easter  holidays  the  working 
days  have  been  very  few.  Mocatta's  circular  says  that  the 
China  exchange  has  shown  an  easier  tone,  and  that  purchases 
from  that  quarter  seem  unlikely  at  present,  consequently  the 
offerings  in  San  Francisco  have  been  rather  larger.  Montagu  s 
circular  tells  us  that  the  stock  in  Bombay  on  March  8  wp 
1,300  bars,  and  that  in  Shanghai  on  March  23  the  .stock  m 
sycee  showed  an  increase  of  200,000  ozs.  at  29.975,000  ozs.,  and 
that  in  dollars   an  increase  of  $100,000  at  |i3,c;on,ooo. 


BANK    OF    ENGLAND 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 

Week  ending  on  Wednesday,  April  3,  1918. 

;ssuE   department. 


Notes  Issued 


I 
79,007,145 


Government  Debl .. 
Other  Securities    .. 
Gold  Coin  and  Bullion 
Silver  Bullion 


Proprietors'  Cipllal 

Rest 

Publio  Deposlls(including 
Bichequer,  Savings 
Banks,  Commissioners 
of  National  Debt,  and 
Dividend  Accounts)  .. 

Other  Deposits 

Saveo  Dav  and  other  Bill e 


£79,007,145 
BANKING    DEPARTMENT. 
t 


£ 

11,015,100 

r, 434,900 

60,557,145 

f7g,0O7  145 


14,553-000 
3,550,624 


36,288,080 

150,272,776 

11,126 


Government  Securities 

Other  Securities    ..        ..  ..j. ,—,--, 

Notes 31,008,710 

Gold  and  Silver  Colo      ..  872,047 


£ 
59,308,032 
113.486,817 


£204,675,606 
J.  G.  NAIRNE,  Chief  Cashier. 


£204,675,606 
Dated  April  4,  1918. 

BANKING     DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
April  4, 


£    , 
3,117.260 

50,123,837 

128,968,333 

30,678 

39,244,854 
123,307,951 
32,189,690 


38,900,585 
54,690,888 

I9'8  p.c. 
S  „ 


Liabilities. 
Rest 

Pub.  Deposits  .. 
Other    do, 
7 'Jay  Bills 
Assets, 
Gov,  Secarltlet 
Other       do. 
Total  Reserve ,, 


NoteClroulatiou 
Coin  and  Bullion 
Proportion 
Bank  Rate 


March  27, 
igiS. 


April  3, 
1918, 


£ 

3,596,923 
43,842,703 

137.548,565 

io,5j8 


£ 

3,550.624 

36,283,080 

150,272,776 

11,126 


55,951,282  \  59,308,032 
I [2,356,263  I  113,486.817 
31,244,184     31,880,757 


47,817,095    47,998,435 
60,611,279    61,429,192 

I7'2  p.c,  I     17-1  p.c. 

5       .,  I       5        .. 


lacrease. 


I2,724<2II 

588 
Decrease. 


12,724,799 


Increase. 

£ 

181,340 

817,913 


Decrease, 


£ 

46,299 
7,554,623 


Increase. 

3.356.750 

1,130.554 

636,573 

I2,72(,799 


344 


XTbe  Jnveetors'  IRevlew, 


April  6,   1918. 


LONRON 

BANKERS' 

CLEARING. 

Uale. 

InereaM. 

DeoreaM. 

19 1 8. 

„,'9"- 

„  £ 

£ 

January 
February 

2,073.«4,0O0 

1,865,125,000 

208,099.000 

__ 

1,605,654,000 

1,779,154,000 

— 

173.870,000 

March      6 

464.845,000 

540,796,000 

— 

75,951.000 

>■       >3 

456,604,000 

312,109,000 

114,493,000 

— 

»          30 

419,381,000 

331.^74,000 

87,^07,000 

— 

!l        ^' 

474,006,000 

308,346,000 

165,663,003 



April         3 

324,156,000 

339,347,000 

— 

65,191,00a 

Total 

3,787,870,000 

5,526,821,000 

576,061.000 

3i5,oia,coo 

NCW   YORK   ASSOCIATED    BANKS   (dollar  at  48.). 


CURRENCY  NOTES. 

Retntn  of  Currency  Notes  for  the  week  ended  April  3 

,  1918. 

Issued. 

Cancelled. 

Outstanding. 

£1  notes         

log.  notes        

Note  certificates 
Previous  total 

3,223,698 

1,075.304 

230,000 

861,193.557 

£ 
1,329,411 
632.938 

637,27', 440 

167,924,086 
38,347,106 
24,580,000 

22-?,Q22,097 

876,126,831 

643,275,639 

230,851,192 

Ratio  of  gold  held  against  notes,  this  week,  13.D3  PC. ;  last  week, 
PUBLIC   INCOME   AND    EXPENDITURE. 

(For  7  days  ended  March  30.) 


14.20  p.c. 


Revenue. 


£ 

Customs         2,971.000 

Excise  ..  ..  ,  •.  ..  529,000 
Estate,  &c,,  Duties  ..         ..       543,000 

Stamps 279.000 

Land  Tax  and  House  Duty  70,000 
Property  and  Income  Tax  9,749,000 
Excess  Profits  Tax..        ..  10,399,000 

Land  Values •         35,000 

Post  OfiBce 2,350,000 

Crown  Lands 60,0.10 

Sundry  Loans 75.007 

Miscellaneous 834,981 

Bullion  advances  repaid  ..  100,000 
ForTreasury  Bills  for  Supply  64,003,000 
5%  Exchequer  Bonds,  1930  12,021,000 
3%  Exchequer  Bonds,  1922. .  — 
6%  Exchequer  Bonds,  1920. .  — 
National  War  Bonds  .  .*2g, 337,000 
War  Savings  Certilicates  . .  2,000,000 
4%  War  Loan,  1929-1942  1  __ 

5%  War  Loan,  1929-1947  f  ' ' 
Other  Debts  created   under 
War  Loan  Act,  1915,  and 
Finance  Act,  1916..        ..  25,092,990 
Telegraph  Money  Act,  IQ13       165,000 
Under  Post  Ofl&ce  Rly.  Act, 

1913 27,000 

Under  Military  Works  Act, 

1897-1903       — 

Under  Public  Buildings    ..        — 
Under  Housing  Act.,        ..         61,400 
Repayment  of  Advance  for 
Interest      on     Exchequer 

Bonds  — 

China  Indemnity      ..         ..        — 
East    Africa    Loan     repay- 
ments         — 

Suez  Canal  Drawn  Shares. .         — 
Ways  and  Means  Advances  114,007,000 
Decrease      in      Exchequer 
balances       .,        ..        ..        — 


Expenditure. 


892,347 

983,747 


737,601 

88,267 
■  73.709.310 
50,000 


4.921.330 


£273,609,578 


National  Debt  Service 

Interest,   &c.,  on  War  Debt 

Development  &  Road  Impvt 

Payments  to  Local  Taxation 

Otner  Consolidated  Fund 
Charges       

Supply  Services 

Bullion  Advances     .. 

For  Advance  for  Interest 
on  Exchequer  Bonds  un- 
der Capital  Expenditure 
(Money)  Act,  1904  . .        . .        — 

For  Treasury  Bills  . .         . .  67,377,000 

Other  Debt  under  War  Loan 
Acts,  1914-16 

For  War  Loan  and  Ex- 
chequer Bonds  under 
Section  61  of  Finance  Act, 
1916,  and  Section  34,  1917   4,398,477 

Under  Telegraph  (Money) 
Act,  1913 — 

Under  Post  Office  (Lon- 
don) Railway  Act,  1913..         20,000 

Under  Militarv  Works  Acts        — 

Under  Housing  Act,  1914..        — 

Public  Buildings  Expendi- 
ture Act,  1903        ..         ..        — 

Old  Sinking  Fund,  1907-8.. 

Sinking  Fund,  1910-11 

China  Indemnity 

East  African  Loan  .. 

Cunard  Agreement  Act     .. 

Expenditure  Certificates   . . 

Depreciation  Fund  .. 

Suez  Canal  Drawn  Shares. . 

Temp.    Advances    Repaid  117,506,000 

Increase  in  Exchequer 
balances       2,592,469 


6,500 


203,500 
143.030 


£273.609,578 


*£zoluding  sales  through  banks  which  have  not  yet  been  brought  to  account. 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  4s.). 


Mar,  I,  1918. 

Feb.  21,  igi8. 

Mar.  2,  1917. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

£ 

92,323,000 
71,459,800 
10,500.000 

£ 
89,501,600 
75,054,600 
10,500.000 

60,832,600 

42,406,200 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

174,282,800 
177,069,200 

4,II3.8ro 

175,056,200 

175,404,600 

4,018.200 

103,238,800 

63,516,200 

469,400 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

355.465,800 
12,088.800 

354,479,000 
12.025.800 

167,224,400 
1,994,200 

Total  reserves  . . 
Bills  disoounied— Members'. . 
Bills  boBght  in  open  market 

367,554,600 

100,505,000 

50,842,600 

366,504,800 
101,906,800 
59.234,000 

169,218,600 
3,768,000 

22.81 1,60T 

Total  bills  on  hand     . . 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec.     . . 
All  other  earning  assets 

160,347,600 

15,541,000 

31,496.400 

736,000 

161.140,800 
10,590,000 
33,941.400 

6S7,2o« 

20,579,t)OO 
5,730,000 
3,893,600 
3,400,600 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 

208,12t,00O 
2,376,400 
73,837.000 

206,359,400 
2,292,600 
59,880,400 

39,612,800 

804,600 

30,805,200 

Total  dedctns.  fm  gross  dep. 
5%Red.  Fund  ag  Fed.Res.bknts 
All  other  resources 

76,2l3,4to 
107,400 
159,200 

62,173,000 
107.400 
146.200 

31,609,800 

80,000 

1,514,200 

Total  resources 

Capital  paid  in 

Surplus 

Government  deposits  . . 
Due  to  membrs  — Res.  account 
Collection  items 
Oiherdepsinc  For.Govt  crdts 

652.155,600 

6^5. 290. 800 

242,035.400 

14,680,200 

226,f00 

30,156,200 

277,604,000 

43,6o6,2o3 
12,824,400 

14,061 ,000 
226,800 
11,233,000 
291,944,000 
39,855,600 
11.665.800 

11,209,000 

2,832,40a 
141,778,600 
23,266,000 

Total  gross  deposits    . . 

F.R.  notes  in  actual  circulat'n 

F.R.  bk  nts  in  circn— nottliab. 

All  other  liab,  in  for  Gov  crdt!> 

Total  liabilities 

364,l90,Uco 

270,218,200 

1,599,800 

1,239,800 

354.698,400 

262,916.200 

1.599,800 

1,188,600 

167,877,000 
62,851,600 

97,800 

652,155,600 

635,290,800 

242,0^5,400 

Gold  res.  ag  nett  deposit  liab 
Gold  res  ag  F.R.  nts  in  act  circ 
Ratio  of  gold  res  to  nett  dep 
and  F.R.  nts  liabilities  com- 
bined       

Ratio   of    total   res.    to  net 
deposit  and  F.R.   note  lla 
bilities  comb  ned 

60.5% 
66.6% 

637% 
65.8% 

60.0% 
67-3% 

63.8% 

66.0%      , 

75.7% 
101.8% 

84.0% 

85.0% 

Loans       

Reserve  held  In  own  Vaults . . 
Reserve  held  in  Fed.  Res.  Bk. 
Cash  in  own  Vaults     . , 
Reserve  held  in  Other  Depos. 
Nelt  Demand  Deposits 
Nett  Time  Deposits     .. 

Circulation         

Excess  Lawful  Reserve 


Mar.jo,  i9i8iMar.23, 1918 


867,37o,oco 

3.462,000 

1 03^88,'- 00 

20,596,000 

1,576,^)00 

748,040,000 

37,218,000 

7,136,000 

9,200,000 


£ 

858,344.000 

3,384,000 

102,438,000 

20,294,000 

i;486,ooo 

741,910,000 

38.824,000 

7,048,000 

8,55o,o--o 


Mar.L6,*9i8.  Mar. 31,1917- 


— I — 

863,768,000 

3,226,000  J 
102.602,00c 
20,330,000 
1,536,000  I 
734,478,000 
40,058,000  i 
6,968,000  j 
9,M8.ooo 


£ 
719,274,000 

90,854,000 
42,508,000 

11,584.000 
730,438,000 

36,023,000 

5.650,oco 

24  050,000 


Lawful  Reserve  consists  of    x8%  of    the  Demand  Deposits  and  5%  of    the 
Time  Deposits. 

NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES   (dollar  at  4s.) 


Loans  ..        .. 
Specie  . . 

Deposits 
Legal  Tenders 


Mar.30,  1918.  Mar.  23,  1918 


150,482,000 

2,928,000 

141,25^,000 

13,468,000 


148,604.000 

2,934,000 

» 39.952,000 

13.17a.roo 


Mar.  x6,  19x8.    Mar.  31, 19x7 


148.560,000 
24,914,000 

» 39.374,000 
12,5^2,000 


155428,000 

13,622,000 

165,262,000 

2.156,000 


BANK 


OF   FRANCE   <25  francs  10 

Mar.  2S,  V918. 


Gold  In  hand 
Silver  In  hand 
Bills  disoounted 
Advances  .,•■ 
Noteoirculation 
Publio  deposits 
Private  deposits 
Poreien  Bills.. 


133.457,483 
10,217,000 

53.128,720 

44,114,280 

1,007,173,120 

i,y9i,<"oo 

112,342,2^0 
371,320 


Mar.  21,  19 1 8 

£ 

133.406,240 

16,230,720 

41,591,000 

45,595.560 

992,998,760 

2,207,365 

109,624,640 

362.560 


Ma 


14.  1918^ 


133, 
10 

42: 

47 

969 

I 

103 


£ 
,3t6,i6o 
,248,200 
,563,560 
,020,800 
,764,800 
,552,040 

,927,4'*0 
434,200 


Mar.  29,  1917- 

£ 

130,096,960 

10  535.320 

20,901,840 

47.897,960 

738,393.240 

6,947,<;6o 

101,625,480 

104,200 


Proportion  between  bullion  and  circulation  22.35  P^r  cent., against  22.68  per 
cent,  last  week.  Advances  to  the  State  jf 560, coo, 000,  increase  i'i2,ooo,ooo.  The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium.  £19,384,960^ 
decrease  £118,520,  and  at  the  branches  3^24,826,600,  decrease  £28,880. 

IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  £U 


I  Mar.  23, 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances 
Note  oiroulation 
Deposits 


£ 

126.305,500 

66,957,1.50 
673,455,150 
259,050 
569,960,550 
356,455,300 


1918.  Mar.  13,  1918.  Ma-.  7,  igi8.  Mar.  23,  1917. 


£ 

126,257,450 
66,109,050 
667.471,500 
309,800 
567,764,400 
337.255,450 


^  £ 
126,223,550 

65,787,500 

653,272,250 

318,800 

566,205,200 

329,552,050 


H7,287,500 
17,389,650 
462,905,700 
533.800 
411,241,250 
225,176,750 


Clearing  House  return   during   February   ]C42o,879,905,    against  £478,428,170 
in  January. 

BANK    OF    SWEDEN  (18  kroner  to  the  £). 


Mar.  16, 1918. 

Mar.  9, 1918. 

Mar.  2, 1918. 

Mar.  17, 19171 

£ 

/ 

£ 

£ 

Gold 

13.049,000 

13,060,000 

13,0:9,000 

10,714.000 

Balance   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

7,193,000 

7,340,000 

7,316,000 

7,70i/»» 

Govt.  Securities  .. 

3,959,000 

3,130.000 

3,137,000 

4.033,000 

Discounts  and  Loans 

14,705,000 

12,715,000 

12,720,000 

7,754.000 

Notes  In  ciroulptioD 

32,736,000 

31,560000 

31,721,000 

22,640,000 

Deposits  at  notice  .. 

6,971,000 

5,183,000 

5.519,000 

7,939.000 

BANK    OF 

SPAIN  (25  pesetas  to  the  £). 

Mar. 23, 1918 

Mar.i6. 1918 

Mar.  9, 1916 

Mar.24,  1917 

£ 

£ 

£ 

£ 

Gold        

79,948,9ti 

79,937,892 

79,910,619 

53,705,208 

Silver       

28,241.379 

28.193.99S 

28,171,097 

30,074,800 

Foreign  Bills 

3,562,844 

3,568,481 

3,566,120 

3,468,367 

Discounib- and  Sbort  Blllg  .. 

30,420,521 

30,345,940 

30.669,071 

25,856,9:6. 

Treasury  Account,  &c. 

25,014,821 

24,991,728 

24.9''4,2I3 

26,750,566' 

Notes  in  Circulation  .. 

114,017,169 

114,547,835 

114.767,490 

ts.  143.063. 

Current    Accounts,   Deposllb 

33,766,316 

34,097,245 

34.240,597 

31,426.403 

Dividends,  Interests,  &c.     .. 

1,495,893 

1,525,831 

1,643,316 

1,106,900 

Government  Securities 

5,858,916 

5,227,053 

5,756,708 

s,357.5ol 

NETHERLANDS  BANK  (12  Florins  to  the  £). 


Gold  and  Silver 
Bills  and  Advances 
Note  cIrcuiatiOD 
Deposits.. 


Mar.  30,1918 


£ 

60,789,000 

13,064,166 

7-1,406,750 

4.730,333 


Mar.  23,1918 


£ 

60,865,666 

",40  J. 333 

72,215.000 

5,358.500 


Mar.  16,1918 


£ 

60,919.290 

11,108,333 

71,804.917 

4,653, 9'6 


Mar.31, 1917 


£ 

49,786,000 

14,382,833 

62,379,416 

6,386,000 


SWISS  NATIONAL  BANK  (25  francs  (0  the  £1. 


Gold  and  silver 

Bills 

Note  eiroalatlon 
Current  and  deposit 
accounts 


Mar.  ij,  1918 


£ 

16,970,560 
9,127,964 
25.533.13S 

3,968,184 


Mar.  7,  igiS. 


£ 
16.929,884 

8,933,817 
25,513.684 

3.803,412 


Feb.  aS,  1918. 


16,003,360 
8,860,124 
25,866,764 

3.079,4^6 


Mar.  IS,  1917V 


£ 

15,817,70s 

7.492,276. 

20,853,880 

5.385.420 


LONDON  COURSE  OP 

EXCHA 

NGE. 

Usance. 

Mar.  26,  igi8. 

April  4 

,  1918. 

Sellers. 

Buyers 

Sellers. 

Buyers. 

Amsterdam  . .     . , 

Cable  transfers 

10.24 

10.2'i 

9.96 

10 

Paris      

Cable  transfers 

27.24 

17.26 

2717 

27-22 

,j       

Three  months' bills..     ., 

27.64 

27.65 

27.57 

27.62 

Switzerland..     ..• 

Cable  transfers 

20.58 

20.63 

20.20 

20.30 

Threr  months' bills..     .. 

ao.93 

20.98 

20.55 

20.65 

Petrograd     . .     . . 

Cable  transfers 

nom. 

nom. 

nom. 

nom. 

Genoa,  Ac 

Cable  transfers 

41.58 

41.6S 

4>.83 

4i.»} 

Spain     

Cable  transfers 

18.56 

18.66 

18.20 

18.30 

,^        

Three  months*  bills  . .     . , 

60 

61 

62 

63 

Lisbon  and  Oporto 

Cable  transfers 

27i 

28i 

28 

29 

Copenhagen..     .. 

Cable  transfers.,     ..     .. 

13.28 

«5.33 

15 

15.10 

Christiania  ..     .. 

Cable  transfers 

15.05 

»5.iS 

14-65 

14.75 

Stockholm  ..     .. 

Cable  transfers 

14.25 

M.35 

13.65 

13  75 

April  6,   1918. 


^be  Jnvestors'  IRevtew, 


345 


FOREIGN   RATES    OF   EXCHANGE   ON   LONDON. 


Method  of 

Last 

This 

Quoting. 

no 

a,  X 

W 

Week. 

Week. 

Paris,  cheques 

Francs  to  ^f  i 

23.224 

27.22 

«7-i9j 

Amsterdani,  cheques 

Florins  to  i^t 

:2.io7 

10.20 

10.05 

Italy,  sight 

Lire  to  :fi  .. 

25  "J 

41.70 

41.90 

Madrid,  sight 

Pesetas  to  f  I 

25.22J 

l8.52i 

18.20 

Lisbon,  sight 

Pence  to  milreis  ,. 

53id. 

28id. 

2Sd. 

Switzerland,  sight    .. 

Francs  to  ^T I 

25. 22 J 

20.50 

21.17 

Christiania,  sijfht 

Kroner  to  £i 

18.159 

'5.92J 

14.82 

Stockholm,  sight 

Kroner  to  £■  I 

18.159 

14.10 

13-87 

Copenhagen,  sight    .. 

Kroner  to  jTi 

18.159 

15.29 

15.17 

Petrograd,  sight 

Roubles  to  jf  10     .. 

94-57 

nom. 

nom. 

Alexandria,  sight 

Piastres  to  ;i;i 

97» 

97i 

974 

Bombay,  T.T 

Sterling  to  rupee. . 

1/4 

1/4P 

1/4  i 

Calcutta,  T.T 

Sterling  to  rupee.. 
Sterling  to  dollar.. 

1/4 

nm 

Hong  Kong,  T.T 

.I'lj 

3to5 

Shanghai,  T.T 

Sterling  to  tael     . . 

-~ 

4/4i 

t',\t, 

Singapore,  T.T 

Sterling  to  dollar. . 

— 

Yokohama,  T.T 

Sterling  to  yen     . . 
Dollars  to  jf  I 

2t.5Sd. 

a/'iS 

2/lf 
4.76 

New  York,  cable      ., 

4.S6S 

4-763 

Buenos  Aires,  T.T 

Pence  to  dollar    .. 

47-58d. 

5ld. 

505<. 

Valparaiso,  90  days.. 

Pence  to  peso 

.5d. 

15  *J. 

'ifonlevideo,  T.T 

Pence  to  dollar    . . 

Sid. 

62d. 

63d. 

Rio  de  Janeiro,  90  days    . . 

Pence  to  milreis  . . 

led. 

laAd- 

hM- 

OPEN  MARKET  DISCOUNT, 


Thirty  and  sixty  day  remitted 
Three  months  ,, 

Four  moDtha  ,, 

Six  months  , 

Three  months  fine  inland  bills 
Four  months 
Six  ID  oaths 


Last  week.  Thisweek 
Percent.    Percent. 


3ft-| 

4-i 
4i-i 


i 


3: 

3I-I 
3ft-i 


BANK  AND  DEPOSIT  RATES. 


Baok  of  England  minimum  diaoouot  rate 
,,  ,,         short  loan  rates 

Bankers*  rate  on  deposits 

Bill  brokers'  deposit  rate  (call) 

,1  7  and  14  days'  notice 

Current  rates  for  7  day  loans 
„  forcalMoans 


Last  week  This  week 
Per  cent.    Per  cent. 


3 
3 
3i 

11=1 


3 
3 

M 

2i— 3 


Mr.  W.  E.  Martin,  one  of  the  assistant  managers  of  the 
Prudential  Assurance  Co.,  having  reached  the  age  limit,  has 
retired  from  the  service  of  the  company,  which  he  entered  in 
1872.  After  filjing  various  important  executive  appointments, 
Mr.  Martin  became  controller  of  the  estates  in  1904,  and  in 
1908  was  appointed  assistant  manager,  a  position  which  he 
has  held  for  the  past  to  years. 


The  Week's    Stock   Markets. 

There  was  only  a  poor  attendance  in  the  House  when  the 
Stock  Exchange  resumed  business  after  its  long  week-end,  and 
the  accumulation  of  orders  was  so  small  that  it  would  not 
have  done  much  credit  to  an  ordinary  Saturday  before  that 
became  a  dies  nan.  Investors  were  not  out  to  look  for  bar- 
gains, preferring  to  adopt  a  waiting  attitude,  and  the  dealers 
were  perhaps  a  little  premature  in  marking  up  prices,  especi- 
ally for  War  Loans  and  other  gilt-edged  securities.  How- 
ever, this  shows  a  healthy  optimism  which  is  valuable  in  these 
days,  and  whether  intended  from  that  point  of  view  or  not 
the  feeling  is  to  be  commended  as  a  symptom  of  entire  con- 
fidence in  the  Allies'  position  and  prospects.  At  the  same 
time,  there  is  a  great  deal  of  uneasiness  in  responsible  quarters 
about  the  Government's  proposals  with  regard  to  raising  the 
military  age  to  50.  Not  only  is  it  recognised  that  very  few- 
men  of  that  age  are  really  fit  either  for  camp  life  or  campaign- 
ing, but  the  effect  on  the  business  of  the  country  is  regarded 
with  something  akin  to  absolute  dismay.  Men  of  45  to  5a 
in  the  City  as  a  rule  have  attained  responsible  positions  where 
they  would  be  extremely  difficult  to  replace  owing  to  their 
many  years  of  knowledge  and  experience,  and  even  at  present 
it  is  hard  enough  to  keep  businesses  running  smoothly  with 
older  men,  and  boys,  and  inexperienced  girls.  From  past 
experience  of  the  working  of  the  military  machine  there  are 
ample  grounds  for  fearing  that  men  who  are  indispensable  in 
their  present  positions  will  become  broken-down  burdens  on 
the  country  instead  of  an  invaluable  asset,  and  there  is  a  pretty 
general  feeling  that  the  whole  idea  is  merely  another  example 
of  frsthy  clap-trap  which  is  likely  to  do  infinitely  more  harm 
than   good. 


After  its  long  holiday  the  Stock  Exchange  returned  to 
business  in  a  rather  anxious  frame  of  mind  with  regard  to 
the  developments  on  the  Western  front,  and  evidently  the  in- 
vesting public  generally  were  also  inclined  to  adopt  a 
waiting  attitude  as  the  accumulation  of  orders  was 
almost  entirely  negligible.  The  tone,  however,  was 
wonderfully  good  in  the  circumstances,  and  it  is 
an  exceedingly  gratifying  sign  that  British  funds,  and 
particularly  War  Loans,  have  shown  throughout  exceptional 
strength.  All  the  leading  issues  have  gained  good  fractions,  and 
Bank    stock,    among    others,    has    risen    as    much    as    a    point. 


Wesleyan  &  General  Assurance  Society. 


h 


ESTABLISHED     1841. 


Principal  Office— BIRMINGHAM. 


INCORPORATED    1914. 


MMARY  OF  THE  SEVENTY-SEVENTH  ANNUAL  REPORT 
FOR  THE  YEAR  ENDING  31st  DECEMBER,     1917. 


The  total  income  from  Premiums  and  Interest  after  deduction  of  Tax  was  £1,163,410  ISs.  3d.^ 
showing  an   increase   of    £31,671     98.    lid. 

The  Claims,  including  Surrenders,  during  the  year  amounted  to  £548,449  6s.  6d.,  making  a  total 
exceeding  NINE  MILLION  POUNDS  paid  since  the  commencement  of  the  Society. 

The  amount  paid  in  War  Claims  up  to  31st  December,   1917,  was    £168,057     148.     5d. 

The  total  Assets  at  the  end  of  the  year  amounted  to  £3,108,490  198.  6d.,  showing  an  increase 
of  £231,270     188.     lid. 

The  amount  invested  in  British  and  French    Government  Securities  was  £901,639     Ss.     3d. 

In  the  Industrial  Department,  after  providing  for  the  liability  imposed  by  the  Courts  (Emergency 
Powers)  Act,  there  was  a  valuation   deficiency   due   to   War   causes   of    £"24,405    3s.    7d. 

After  writing  down  the  value  of  certain  securities  by  £4,000,  and  applying  £2,000  as  an 
addition  to  the  Investments  Reserve,  the  Valuation  surplus  shown  in  the  Ordinary,  Sickness  and  Annuity 
Departments  was  £38,251      128.     lid. 

Out  of  this  sum  £35,000  has  been  set  aside  as  an  addition  to  the  Contingency  Fund,  increasing 
that  Fund  to  iE  75,000,  the  primary  object  of  which  is  to  enable  bonuses  to  be  granted  in  respect  of 
the   period   elapsed   since    the   last   declaration   as   soon   as   conditions   will   allow. 

The  Directors  have  adopted  the  recommendation  of  the  Actuary,  and  will  grant  bonuses  on  policies  becoming 
claims  before  the  presentation  of  the  accounts  for  the  year  1918,  in  accordance  with  the  conditions  set  forth 
in  his  report. 

I         The  Directors  arc  confident  that  the  whole  of  the  members  will  heartily  support  and  approve  the  course  which 
has  been  adopted,  as  thereby  their  present  security  has  been  preserved  unimpaired   and  their  prospects  of  future 
profits  have  been  enhanced. 
I 


B.    SHIRLEY    SMITH,  Chairman. 


ARTHUR    L.    HUNT,  General  Manager.. 


346 


Zbc  Jfivestors'  IRevtew* 


April  6,   1918. 


IWeek  Weekl 


XSTTTEir 
Week  Week 


Coneol* 

War  Lou   3*' 

ii 


1929-47. 
,  1919-42. 


India  3%  . 

,,     310^ 

Austrauan  5}%,  lojo-aj" . 

Canada  4%,  1940-60 

..  ,■.',.,  <»%■ '920-5  

N.S.W.4%,1933 

Argentine  4%,  igoo  ,, . 

Belgian  3% 

Brazil,  1913 

^^.,       5%,  1914    

Chinese  1896  

M       1912 

Efiypi  Unified  4% 

Caledonian  defd 

Gl.  Central  pta 

J,       „        dfd 

•Gt.  Eaalem 

Gl.  Northern  dfd 

Ct.  Western    

LanOB,  and  Vorks.  , . . 
London  Brighton  defd 
London  Chatham  ord. . 


u, 

m 

lool 
9.1ft 

100 

93tJ» 

lOOX 

100 

I? 

'd 

^ 

99 

80 

n 

Canadian  PaciSo   

E.  Indian  Guar.  4)  %  debs. 

Grand  Trunk  ord.    

Do.  ist  pf 

Do.  3rd  pf 

Aniofagasia  dfd 

Brazil  Common 

B.  A.  &  Pacific 

B.  A.  Gt.  Southern 

B.  A.  Western    

Anglo-South  American   .. 

Bank  of  Australasia 

Bankof  N.S.  Wales 

Barclay  &  Co.  "  A  " 

Do.       "B" 

Capital  &  Counties  

Chartered  of  India    

Hongkong  &  Shanghai    . . 

Lloyds  

London  &  Brazilian 

Armstrong,  Whitworth  .. 
Birmingham  Small  Arms 

Cammell-Laird 

Gargo  Fleet 

Dorman,  Long  

Associated  Cement 

Borax  dfd 

Bovrll    

Brazil  Traction  

British  A mer.  Tobacco  pf. 

British  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Kellnei 

Coats 

Cotirtaulds 

Canard 

Dennis  Bros 

Eastern  Telegraph    

£;astmans ...     , 

English  Sewing  Cotton  .. 

Anglo-Egyptian  "B" 

Baku  (los.)  

Burmah 

Lobitos 

Maikop  Pipeline   

Mexican  Eagle  pf 

Allagarj/- 

Anglo-Java  Rub.  2/-     

Anglo-Malay  2/ 

Ayer  Kuning  ^i 

Batang  Malaka  2/- 

Bekoh  2/- 

Brit.  N.  Borneo  Trust  £1 

BukitCloh2/- 

Bukit  Kajang£i 

Bukit  Mertajam  2/-  

Bukit  Sembawang  2/-  . . . 

Carey  United  £1   

Ceylon  Para  2/- 

Chersonese 

Cheviot  2/-   

Dalkeith  2/- 

Eastern  Invest.  Trust  £t.. 
Grand  Central  £1 

Gula  Kalumpong  £1 

Highlands  £1 

Java  Investment  £1 

Java  Para  /i  

lobore  Rubber  Lands  ^i. . 

Kamunin    2/- 

Kinta  Kellas2/-  '. 

Kuala  Kubu2/-  ] 

Labua/- ]' 

Langen  Java  £1 [',', 

Linggi2/- 

London  Asiatic  2/- 

Malacca  £t ] 

Malayalaui  £1 \\\[ 

Merlimau  2/-   !.!!! 

Padang  Jawa  2/- ','..[ 

Pataling  2/- .... 

Abbontiakoon  (10/-) 

Bechuanaland  Exp 

Brakpan  [  * 

Broken  Hill  Prop.  (8/-)". 

Cam  &  Motor 

Central  Mining  (£11)  .,.'. 

Chartered    

City  Deep      

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (10/-) 

De  Beers  dtd.  (£2  103.)  . . 

Bast  Rand  

Geduld 

Gov,  Areas  Mod     


68 
62J 
70 
82 
89 

87 


I59i 
84 

20^ 

136 

5 

40 
69 

66 

8i 
ii6x 

36 
7 

"i 

25 

72 

82 

24J 

25 
43/ 
59/6 

6i 
25/6 
37/6 

3l 
38/6 
20/9 
42 
18/6 
32/6 

^'^ 
% 

44 
36/6 
■53j 
10/ 
54/ 
33/ 

J/6 

68 
I« 

2/ 
62/3 
3/lJ 
6/4* 
13/9 
45/ 

4/7i  .... 
4/44  4/4J 
i6;9  I  :6;9 


63 

624 

68x 

82i 

87X 

75« 

87 


6i 
34: 

34: 
82; 

63 

531 

158 

51 
19S 
'37 
5 
40J 
70 
67 

116 

36 

7 

"i 

25 

73i 
82 

24i 
25 

43/ 
62  6x 

7 
25/6 
37/6 

-18 
35/6X 
20/9 
42 
18/6 
31/9" 
31/9 
l« 
3ft 

4tS. 
3S/6 
1534 
9/31 
55/3 
34/6 

1/6 

6} 

2/ 
621 

3/15 

6/ 1 J 
14/14 
45/ 
4/7J 


N.S.W.  4»%5yrbda 

1.      44%.  >922-7 

I.         5%.  '921-3 

..  51%.  1920-2  • .  ■ . 
New  Zealand  4%,  1929  . , 
Queensland  4% 

M  44%.  '920-5    . 

Union  of  S.  Africa  44%, 

1920-5    

Victoria  4i%.  1020-3 

Westn.  Aus.  4%    


4  104 
72/6 

4/"4  1 

72/6 

4/6 

4/44 

3/44 

3/1 

41/3 

41/ 

9/3 

9/3 

3/1 

3/3 

6/ 

5/74 

2/q4x 

2/9X 

25/9 

25/9 

c:6/6 

26/6 

35/ 

35/ 

56/b 

57'9 

26/6 

26/1 

29/6 

29/6 

31/9 

32/ 

3/«4 

3/9 

4/ 

3/JoJ 

2/74 
9/4J! 

2/74 

9/ 

37/6 

37(6 

25/9 

26/3 

9/ 

9/14 

5 

5 

38/ 

36/6 

5/44 

5/4i 

3/6 

3/6 

41/6 

40/6 

4/ 

4/ 

Hi 

li 

4* 

ii6 

10I6 

"i 

6 

•4/74 

'5/>4 

li 

3^ 

'H 

16/6 

18 

14 

I2| 

I2| 

i 

5/3 

French  War  Loan,  5% 
Japan  4J%  (ist),  1903    . 

5%   1907 

Mexican  5%,  1899    ... 
Russia  4   % 

„     4i%.  1909 

M      5%.  1906 

London  and  N.-W. 
London  and  S.-W.  dfd 

Do     red.  pf,  1914 

Metropolitan 

Do.       5%      pf.. 

Met.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastem  

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern 


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San   Paulo  (Brazilian).... 

United  of  Havana 

London  City  &  Midland. . 
London  County  &  West?. . . 

London  Joint  Stock 

Nat.Prov.otEng.(£ioJpd) 
Do.  (£i2  pd) 

Parr's    

Standard  of  S. A 

Union  Discount 

Union  &  Smiths 

Kynochs   

Mond  Nickel  ord 

South  Durham  Steel  .... 

Thornycroft    

Vickers 

Fine  Cotton  Spinners  .... 

Forestal  Land 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay    

Imperial  Tobacco  'C  pf 
Lever  Bros.  "  C  "  pf .  , , . , 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  &F 

P.  &0.dfd 

Royal  Mail 

Underground  Inc.  Bds.  .. 


North  Caucasian  . 
Roumanian  Cons.. 

Shell 

Spies  (10/.) 

Ural  Caspian 


Perak  2/-   

Port  Dickson  2/-   .* 

Rub.  Estates  Johore  £1. 
Rub.  Estates  Krian  2/-. . . 

Rubber  Trust  £1 

Sampang  (Java)  2/- 

Sapumalkande  ^i     

Seaport  £1 

Selangor 

Sengat  2/- 

Seremban  jf I  ..\ 

Shelford  £1 

Siaiang  £1    

Singapore  Para  2/-    

Singapore  United  2/-    . , . 

Soember  Ajoe  2/- 

Stagbrook  £1 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  £z   

Sungei  Kapar  2/-   

Sungei  Kruit  £1.., 

Taiping  2/- 

Tali  Ayer  £t  

Tandjong  ^1   

Tandjong  Malim  £1 

Tebrau  £r  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdang  2/- 

United  Sumatra  2/- 

Vald'Or2/- 

Vallambrosa  2/- 

Way  Halimi/8pd 


Gt.  Boulder  (aM    

Kyshtim    

Mashonaland  Agency  . . . 

Meyer  &  Charlton    

Modder  "B" 

Do.     Deep 

Mysore ■. 

R^nd  Mines  (5/-)    ., 

Rio  Tinto  (j^s)   

Russo-Asi  itic 

1^ Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep ,,., 


26^ 


^7^ 


Colonial  loans  did  not  attract  much  attention  at  first,  but  a 
certain  amiount  of  'buying  made  its  appearance  later,  and 
quotations  were  marked  up  J^  to  i  in  most  of  the  active  issues. 
In  the  foreign  market  the  weakness  of  Russian  bonds  was 
conspicuous  owing  to  the  decision  of  the  British  and  French 
Ck)vernments  not  to  undertake  liability  for  the  payment  of 
further  coupons.  There  has  been  a  good  deal  of  di.scussion  as 
to  the  advisability  of  this  policy,  and  opinions  on  the  subject 
are  very  much  divided.  French  loans  were  inclined  to  give 
way  a  little,  but  .Spanish  Fours  advanced  a  point.  V'ery  little 
business  took  place  elsewhere,  but  Cuban  Ports  were  noticeably 
heavy,   and  lost  as  much  as  2  points. 

Home  Railways  made  a  good  start,  and  although  buying  was 
on  only  a  very  moderate  scale,  dealers  considered  it  prudent 
to  mark  their  prices  up.  The  market,  however,  afterwards 
became  completely  stagnant  and  rather  flat  in  appearance. 
Nothing  ha"ppened  in  the  American  .section  except  for  some 
display  of  strength  in  the  price  of  International  Mercantile 
Marine.  Canadian  I'icifiics  and  Grand  Trunks  were  very  weak 
owing  to  the  poor  February  statements,  which  show  a  still 
further  disquieting  increasei  in  working  expenses.  Mexican 
Rails  were  scarcely  mentioned,  but  the  Argentmo  division  was 
much  firmer  on  the  excellent  receipts  for  lasf  week,  in  some 
cases  the  takings  constituting  a  record.  On  the  other  hand,  it 
seems  doubtful  whether  the  Government  will  gr.tnt  a  further 
increase  in  freights  to  compensate  for  the  higher  working 
charges,  and  the  outlook  for  the  companies  must  still  be  re- 
garded as  somewhat  precarious.     San  Paulcs  advanced  a  point. 

Bank  shares  as  a  rule  were  steady  without  much  movement  in 
either  direction,  but  Chartered  of  India  rose  as  much  as  iJ4 
on  the  excellent  report  and  dividend.  Breweries  were  scarcely 
mentioned,  and  no  change  of  any  prominence  occurred. 
Egyptians  were  inclined  to  be  weak,  but  an  exception  was 
Agricultural  Bank  of  Egypt  shari^s,  which  gained  a  good 
fraction.  Iron  and  Steel  shares  opened  with  a  dull  appearance, 
but  improved  somewhat  later  in  the  week,  and  some  of  the 
Explosive  section  made  moderate  headway.  The  most  prominent 
movement,  however,  was  in  the  case  of  Birmingham  Small 
Arms,  which  rose  smartly.  Shipping  shares  were  dull,  and 
among  Miscellaneous  Indu.strials,  Courtaulds  recovered  strongly 
after  the  severe  reaction  which  occurred  last  week.  Maypole 
Dairies  were  weak  on  the  gloomy  statement  made  at  the  meeting, 
and  Textile  .shares  as  a  rule  were  dull  and  neglected. 

Oil  shares  have  shown  up  rather  well  amidst  the  surrounding 
dull  and  drab  conditions,  and  Bunnahs  were  particularly  in 
evidence  with  a  fairly  substantial  advance.  Anglo-Persians, 
Eagles,  "Shells"  and  Spies  also  improved,  but  there  wsts  a 
slight  drop  in  Venezuelan  Concessions.  Rubber  .shares  have  not 
been  in  any  great  demand,  but,  on  the  other  hand,  little  .stock 
comes  on  the  mafket,  and  buyers  still  find  it  difficult  in  getting 
their  orders  executed  except  in  the  leading  shares.  On  the 
whole,  the  movements  have  been  in  an  upward  direction,  but 
business  is  so  much  a  matter  of  negotiation  that  the  real  strength 
of  the  market  has  scarcely  been  tested. 


64 


LONDON    PRODUCE   MARKETS, 

A  firm  condition  of  affairs  predominated  in  most  directions, 
though  business  proceeded  quietly,  holiday  influence  being  felt 
during  the  greater  part  of  the  week. 

Sugar  remained  unchanged.  Cuban  receipts  totalled  140,715 
tons,  and  Centrals  working  i6g. 

Coffee. — A  steady  inquiry  for  spot  parcels  led  to  a  moderate 
volume  of  business  being  effected,  and  the  undertone  of  the  market 
keeps  firm.  The  terminal  market  disclosed  a  dull  and  nominal 
state  of  affairs. 

CocoA  quiet  and  featureless  at  regulation  prices. 

Spice. — A  fair  inquiry  predominated  for  p«pper,  and  market 
ruled  firm.  Fair  black  Singapore,  spot,  sold,  is.  4jd. ;  white  ditto, 
2s.  ijd.  ;  Tellicherry,  quoted,  IS.  5d. ;  Aleppy,  is,  4jd.  ;  and 
Muntok,  sold,  2».  2d.  Cloves  firm,  quiet.  Fair  Zanzibar,  spot, 
quoted,  2s.  5d.  Pimento,  sjd.  Tapioca  firm.  Fair  flake,  spot, 
sellers,  8Jd.  Penang  seed  pearl,  77s.  ;  and  medium,  75s.,  with 
fair  small  aago,  80s.  In  .auction  washed  rough  Cochin  ginger, 
sold,  90s.  to  91S.  Mace  dearer,  and  Eastern,  sold,  3s.  ad.  to 
3s.  6d.  per  lb.     Capsicums  realised  higher  rates. 

Rice. — Market  ruled  unchanged,  also  beans  and  peas. 

Hbmp. — Manila  receipts  last  week,  20,000  bales. 

Shellac  quiet,  with  only  retail  sales  on  the  basis  of  440s.  for 
fair  free  second  orange. 

Rubber. — Quite  steady,  but  general  trade  slow.  Crepe,  spot, 
sold,  2s.  5d.  to  2S.  sjd. ;  April,  2s.  jd.  to  2s.  sjd.  ;  May-June, 
2s.  5}d.  to  2s.  6d. ;  July-December,  2s.  7d.  to  2s.  7jd.  Ribbed 
smoked  sheet,  spot,  sold,  2s.  4jd.  Fine  hard  Para,  spot,  done, 
2s.  lojd.  to  2S.  njd. ;  soft  fine,  quoted,  2s.  7d.  ;  ball,  is.  gd. 

Corn  (Mark  Lane). — A  quiet  but  very  steady  tone  was  the  pre- 
vailing characteristic  since  business  was  resumed  this  week,  offers 
being  on  a  limited  scale.  Whea' — Native  grain  now  held  for 
76s.  gd.  per  qr.,  504  lbs.  Imported — No.  i  Northern  Manitoba 
realised  Sis.  6d.  ;  and  No.  2,  80s.  Red  winter  quoted  at  78s. 
Australian,  83s.  6d.  Flour — Imported  in  request  with  limited  sales 
at  51S.  3d.  to  51S.  gd.,  according  to  quality.  English  (G.R ), 
44s.  3d.  per  sack,  ex  mill.  Barley — English  milling,  62s.  gd.  per 
qr.  Maize  remains  out  of  offer  and  quite  nominal.  Oats — 
American  whits  clipped.  No.  2,  6is.  6d.,  landed;  English,  47s.  3d. 

Cotton  (from  our  Manchester  correspondent). — The  market 
has  been  rather  slow  in  recovering  from  the  effects  of  the  Easter 
holidays,  and  the  recent  developments  in  connection  wHh  the  war 
have  resulted  in  buyers  showing  rather  less  enterprise.  Spinners 
and  manufacturers  remain  in  a  strong  position  and  prices  continue 


April  6,   1918. 


Zbc  Jnvestote'  IReview* 


347 


(o  harden,  the  level  of  quotations  in  all  directions  being  of  a  record 
character.  Although  rather  better  advices  are  being  received  as 
to  the  progress  of  the  new  American  crop,  sentiment  in  the  New 
York  market  has  again  been  bullish.  Further  information  is  still 
awaited  with  regard  to  the  arrangements  of  the  Government 
as  to  the  distribution  of  the  Egyptian  growth  for  next 
season.  The  leaders  of  our  industry  recognise,  under  the 
new  man  power  proposals  of  the  Government,  that  the  mills 
will  have  to  supply  some  men  for  the  Army,  and  it  is 
said  that  the  Control  Board  may  have  to  revise  the  restriction 
of  output  scheme  so  far  as  the  employment  of  the  operatives  is 
concerned.   The  inquiry  in  piece  goods  has  been  rather  featureless. 


CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK  ENDING    APRIL  5,  igi8. 


last 
Week. 


This 
Week. 


■ofar— pet  owt 
duty    I4(,    98% 
polarisation 

Tate's  Cubes      . . 

Crushed 

Granulated  . .     . . 

Lyie's  granulated 

Foreign  granu- 
lated, first  marks 
f.o.b.,  spot 

GermaitCubel.o.b. 

Frencli  Cube 

prompt 

Ccvstalllsed,Wesl 
India 

Beet,   88%    f.o.b 


T«a— per  lb.,  duty 

Indian  Pekoe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe    S-)uobong 
Ceylon  Pekoe     . . 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe  Souohong 

Ooooa  —per  owt. 

duty  6d.  per  lb. 
Trinidad — per  owt 
Grenada  , ,  . . 
West  Africa..  .. 
Ceylon  Plantation 
Guayaquil  ..  .. 
Ooffet — per  owt. 
duty  42?- per  owl. 
Bast  India    ,.     .. 

Jamaica 

Costa  Rica  ,.  .. 
Provlilona— 

Butter,  per  cwt. 
\utlraliantinest 
Argentine     . .     . . 
Irlsti  Creameries 
Dutch  ditto..    ,. 
Russian  finest     . . 
Paris  baskets 
Danish  finest 
Brituny     rolls  — 

dos.  lb 

Baeon — per  owt. 

Irish     

Continental..  .. 
Canadian  ,.  .. 
American  . .  , . 
Hams — per  cwt, 

Irish       

Canadian  . ,  . . 
American     ,.    .. 

Ohatu— per  owt. 

Dutch 

Canadian  ..  .. 
English  Cheddar 
Wilts  loaf  ..  .. 
New  Zealand 

Bice— per  cwt. 

Japan     

Rangoon  2  stars  . . 

B««— per  no. 

English 

Irish      

Danish 


£     8.    d, 


«  13  9 
a  13  9 
269 
269 


nom. 

nom. 


269 
nom. 

.  d.  s  d 

nom. 

nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
num. 
nom. 

s.  d.  s   d. 

87  0  -96  0 

80  o  -95 
60  o  -70  o 
77  o  -95  0 
103/-110/ 


£     8.      d. 


a  13  9 
2  13  9 
269 
269 


nom. 
nom. 


269 
nom. 

i.d.  8.  d 

nom. 
nom, 
nom. 
nom. 
nom. 
nom, 
nom. 
nom. 
nom. 
nom. 

d.  s.  d. 

up  to  90  0 

M        85      0 

>•  65  0 
,,  100  o 

It  90  o 


Bpelter— 

G.O.B.  as  to  posl 
lion 


1 100  135  o 
770  151  3 
iioo  ii7  o 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


172/ 
172/ 

171/-171/ 

i7i/-iao/ 

203/ 
162/-165/ 
I 25/- 165/ 

129/6-160/- 

nom. 

nom. 
nom. 
nom. 

s.    d. 
nom. 
26    3 


35  0-36  6 

54  6-35  o 

nom. 


=(:54-£50 


Flour— per  sack. 

Country  Straight 

Runs  ex  Mill .. 


iio-o  135-0 
77-0  151-0 
iio-o  137-0 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


172/ 

172/ 

171/-172/ 

171/-180/ 

203/ 

i62/-ie5/ 
I25/-165/ 

1 29/6- 160/- 
nom. 
nom. 
nom. 
nom. 

?.    d. 

nom. 
26    3 


34  0-36  o 
32  6-33  o 
34  0-35  o 


£54'£iO 


Wool— per  lb. 

A  u  a  t  r  a  1  t  a  n 
Scoured  Merino 
Scoured  Cr'ssbr'd 
Greasy  Merino  .. 
Greasy  Crossbred 
New  Zealandl 
(scoured)  Merino 
Greasy  Crossbred 
Cape  8now  white 

Indiarubberp.lb 

Plantation,      Spot 
Ciepe  . .     . . 


Goal— per  ton 

Durham,  best  .. 

Seconds        ..  . 
East  Hartlepool. 

Seconds       ..  . 
Steams,  best 

Seconds       ..  . 

Load— per  Ion. 
English  Pig..     .. 
Foreign  soft,  net 

Qutokillvor— per 

bottle  firsthand 


44/3 


Last 
Week. 


This 
Week. 


£    8.  d. 

nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom. 


035 


nom. 

nom. 

nom 

nom. 
32  6 
29  6 

£    s.  d. 

nom. 

/:29i-;C28 

nom. 


Tin — per  ton 
English  Ingots     . 

Do.  bars  ..' 
Standard  cash  . . 
TinPlates.perboj 
Oopper — per  ton. 
English,     Tough, 

per  ton      .. 
Best  Selected 
Sheets    ..     .. 
Standard      ..     .. 
Jute— per  ton. 
Native   firsts    for 
shipment 

OIU— 

Linseed, per  ton.. 

Rape,  crude  

Coit'nSeed.crutu 
Petroleum  Oil, pel 

8  lbs. 
Water  White  .. 
Oilseeds, Linseed 
Calcutta— per  ton 
Spot 
Rape     . .     ■ 


£320-^323 
nom. 


nom. 

/I10-£l23 

£149 

£IIO-IIOj 


£58 

£66 
£60 


Iron— per  ton 
Cleveland  Cash  . . 

Tobacoo  —  duty, 
uiimanufactureil 
7/4108/0  per  lb. 

Maryland  &  Oliiu. 
per  lb.  bond    .. 

Virginialeat. 

Kentucky  leaf    .. 

Latakia 

Havana 

Manila 

Cigars,  duty  10/6 
per  lb. 

Timber— Wood. 

Pitch  l^ine    .. 
Indian  'i'eati 


44/3 


Turpentine- 
American  Spot 

Copra— per  ton 

Malabar 
Ceyion  . .     . . 
F.M.S.  Singapore 
P.M.    Straits 


i/7i 
1/84 


29  15 

i£29-io£3° 


nom. 
0  8  -J    1 
0  7  -o  II 
40-50 
16-66 

nom. 

Il  upds. 


300/—  40O; 


£  «.  d, 

uom. 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


0    a    5 


nom. 

nom. 

nom. 

nom. 
^2  6 
tg    6 

£     5.  d. 

nom. 
£29J-£28J 


£3ao-£323 
£32l-£324 

£3t6 

nom. 


nom. 
£ii9-£i23 

£-49 
£lio-noJ 


£58 

r66 

£60 

l/7i 
l/8i 


29  15    0 
£29-io£30 


nom. 
0  8 — 2    I 

0  7 — 0  II 
2  0—5    o 

1  6-6    6 
nom. 

2/  updf. 


300/ — 400/ 


j8o/— 700;  b8o/— 700/ 


124/3 


46  0 
46  o 
45  to 
45  "O 


46  0 
45  10 
45  10 


Only  miscellaneous  sales  have  occurred  for  large  and  small  outlets. 
The  undercurrent  of  demand  in  finishing  and  printing  cloths  keeps 
up  fairly  well,  but  there  are  no  signs  of  a  revival  of  buying  in  sized 
materials.  The  selling  basis  in  India  remains  poor,  and  the 
political  situation  in  China  continues  to  have  an  adverse  effect 
upon  trade.  Only  small  lots  have  changed  hands  for  Egypt  and 
South  America.  A  healthy  demand  has  again  been  experienced  in 
home  trade  fabrics.  American  yarns  have  been  dearer  to  buy,  and 
the  independent  attitude  of  spinners  has  been  very  pronounced. 
The  supplies  on  the  market,  especially  in  wefts,  seem  to  become 
smaller  and  smaller.  A  fair  inquiry  has  come  through  in  Egyptian 
spinnings  at  full  rates. 


By-the-Way  War  Notes. 

Nine  days  have  passed  since  we  last  wrote  about  the  war. 
and  during  most  of  that  time  the  enemy  has  continued  to  battle 
with  the  fury  of  despair  and  to  suffer  disappointment  and  loss. 
The  long  battle  which  began  on  March  21  has  led  to  as  yet 
uncounted  sacrifices  of  human  life — of  German  human  life 
especially — and  still  the  end  is  not  in  sight.  It  is  not  in 
sight  because  the  masters  of  Germany  cannot  brook  the  con- 
fession of  defeat,  the  humbling  of  their  pride,  the  baulking  of 
their  ambition.  Also  they  dread  the  consequences.  There- 
fore, in  all  probability  the  wholesale  slaughter  will  break  out 
again  soon,  and  proceed  until  the  manbood  of  Germany  is 
wholly  used  up,  or  until  hunger  sucks  the  life  out  of  the 
peoples  in  both  Central  Empires,  and  wipes  out  the  two 
tyrannies  in  famine.  It  may  be  thus,  but  the  toil  is  not  light 
that  the  Germans  will  have  to  endure  to  enable  them  to  renew 
their  assaults.  Their  own  devastations  in  the  past  now  hamper 
them,  and,  above  all,  the  airmen  of  the  Allies — French,  Ameri- 
can, and  British — ^throw  fresh  obstacles  in  their  path  and  take 
hourly  toll  of  men  and  material.  Kvery  week  sees  our  air  fleets 
grow  in  prowess  and  renown. 

One  thing  we  may  be  sure  of — as  long  as  the  military  horde 
dominates  Central  Europe  under  the  figureheads  of  the  Hohen- 
zoUern  and  Habsburg  Emperors,  so  long  will  it  be  impossible 
to  attain  a  true  peace.  And  the  nation  understands  that  fully 
now.  There  are  no  illusions  about  the  meaning  of  the  war  or 
the  nature  of  the  peace  which  must  end  it.  As  General  Smuts 
said  at  the  Clothworkers'  Company,  "  Germany  means  to  win 
this  war,  and  to  follow  up  her  victory  with  what  Hindenburg 
has  just  called  '  a  forcible  German  peace.'  And  ours  is  the 
duty  to  resist  it  to  the  death."  Yes,  to  resist  to  the  death,  or 
perish  for  ever.  And  we  have  resisted,  thank  God  !  and  are 
prepared  to  resist  still,  unflinchingly,  with  the  utmost  loyalty 
to  our  Allies,  confident  that  victory  attends  our  efforts,  is 
attending  them  even  now.  What  have  the  Germans  won  ?  Just 
enough  promise  of  a  success  to  come  to  tempt  them  on  and  on 
to   their   destruction. 

Those  who  are  inclined  to  look  with  despair  at  the  prolonga- 
tion of  the  war  should  try  to  imagine  what  might  have  been 
had  the  Prussian  despots  possessed  at  the  outset  sufficient 
glimmer  of  common  sense  to  be  a  damper  on  their  colossal 
vanity.  German  aims  in  the  war  were  defeated  at  the  Battle 
of  the  Marne.  Everyone  remembers  the  programme  ;  how  Bel- 
gium was  to  be  overrun  and  subdued  and  all  Northern  France 
down  to  Paris  and  beyond  captured  and  annexed  within  a  matter 
of  two  or  three  weeks— by  the  end  of  August  at  latest.  The 
whole  .scheme  was  shattered  by  the  magnificent  defence  of  the 
French  and  the  "  contemptible  British  Army  "  at  the  Battles 
of  the  Ourcq  and  the  Marne.  The  coup  de  grdce  was  given- 
to  the  German  onslaught  by  General  Foch,  now  the  trusty  and 
loyally  obeyed'  Supreme  Chief  of  the  Allied  troops  in  France 
and  Belgium,  and  it  meant  the  ruin  of  the  Prussian  design. 
.\ow  supposing  after  that  defeat  the  Prussians  had  had  sense 
enough  to  recognise  that  they  must  at  least  postpone  the 
realisation  of  their  mad  dream  of  masterhood  over  Europe  and 
the  world,  and  made  haste  to  sue  for  peace.  If  they  had 
withdrawn  from  France  and  Belgium,  apologised  for  their 
hasty  onslaught,  bargained  for  the  amount  of  compensation  for 
which  they  were  liable,  and  arranged  to  pay  it,  we  should 
probably  have  fallen  into  the  trap  and  made  a  peace  more  tertile 
of  future  misery  even  than  the  peace  forced  upon  France  in 
1871  by  the  Treaty  of  Frankfort.  A  peace  made  at  the  end 
of  1014  would  in  all  probability  have  left  the  corruptions  of 
Tsardom  still  enthroned  behind  the  Romanoffs  in  Russia,  to. 
Russia's  eclipse;  it  would  have  left  Poland  still  helpless  at 
the  mercy  of  the  Prussian  and  Austrian  interlopers;  Serbia 
would  have  been  either  abandoned  to  its  fate  or  granted  a 
minimum   of   territory   in   which  to  prolong   its  circumscribed 


LIFE  ASSURANCE  AT  MINIMUM  RATES. 

A  Plan  of  Assurance  Specially  Adapted  for  Present  Times. 

Foy  particulars  address  the  ^^ 

GRESHAM  LIFE  ASSURANCE  SOCIETY, 

St.  Mildred'.  House,  Poultry,  E.C.  ^^°-' 

FOUNDED      1848. 


FUNDS      &10.S00.00O. 


THE  GRESHAM  FIRE  AND  ACCIDENT  INSURANCE 

SOCIETy,  LIMITED, 
Transacts  all  classes  of  Fire  and  Accident   Business. 

Chibf  Office  :   St.  Mildred's  House.  Poultry,  Lomdok,  EC. 


THE  COMMERCIAL  BANK  OF  LONDON. 

LIMITED. 

CURRENT  ACCOUNTS  opened,  and   every  description  of   Banking 

business  transacted.     Bills  discounted,  and  advances  made  to 

customeis  on  approved  secur  ty. 
SPECIAL    FACILITIES    GRANTED    TO    COM.\IERCIAL    AND 

INDUSTRIAL  UNDERTAKINGS. 
THE  PURCHASE  AND  SALE  OF  SECURITIES  undertaken,  also 

the  receipt  of  dividends. 

COUPONS  AND  DRAWN  BONDS  negotiated. 
DEPOSITS  received  at  call,  or  for  fixed  periods,  at  rates  which  may 

be  ascertained  on  application. 
6,  Austin  Friars,  London,  E.G.  2.  ARTHUR  H.  KING.  M*«agtr. 


348 


^be  Jnvestors'  IReview. 


April  6,   1918. 


existence  as  an  independent  nation;  and  the  Turk  would  still 
have  been  left  free  to  massacre  in  Armenia  and  to  drain  the 
subsistence  of  his  Christian  subjects  all  over  Asia  Minor. 

But  any  such  treacherous  peace  was  for  ever  rendered  im- 
possible by  the  fury  of  the  balHed  Prussians,  and  their  resolve 
to  go  on  and  on  until  they  had  asserted  their  mastery  is 
proving  to  be  the  world's  deliverance.  The  peace  which  is  now 
coming  cannot  fail  to  be  a  peace  of  deliverance  because  it  will 
ensue  after  the  maleficent  energies  of  the  aggressor  empires  have 
been  destroyed.  Not  a  kick  will  be  left  in  either  when  the  task 
of  the  Allies  is  accomplished.  lioth  empires  are  now  insolvent 
to  a  degree  that  probably  their  own  financiers  do  not  yet  com- 
prehend or  wish  to  comprehend ;  and  both  are  to-day  hungry  to 
the  verge  of  absolute  starvation,  notwithstanding  "treaties" 
with  Ukrainia  and  so  mJiny  grain-loaded  waggons  coming 
and  about  to  arrive  from  Russia.  We,  therefore,  have  but  to  go 
on  with  the  slaughter,  paying  no  heed  to  such  lying  politicians 
as  Count  Czernin,  such  weavers  of  professorial  cobwebs  of 
falsehood  as  Count  Hertling,  refusing  all  intercourse  with  the 
enemy,  holding  our  own  in  the  battlefield,  beating  back  the 
hordes  of  assailants,  overwhelming  them  from  the  air,  and 
the  day  cannot  now  be  distant  when  they  will  be  forced  to  throw 
down  their  arms.  Nay,  we  are  not  sure  that  the  day  is  not 
approaching  when  their  own  subjects,  victims  of  a  malignant 
oppression  and  an  unfathomable  lust  of  power,  will  turn  in  their 
hunger  and  despair  upon  their  betrayers  and  dash  the  weapons 
out  of  their  hands.  Be  that  as  it  may,  our  duty  is  to  fight  on 
until  we  win  our  peace. 

A  demon-like  impishness  bred  of  weakness  and  despair  is 
revealed  by  this  long-distance  bombardment  of  Paris  with  a 
monster  new  German  gun,  or  guns.  It  excites  astonishment  and 
half  converts  the  horror  inspired  by  the  performance  into  a  feel- 
ing of  contempt.  A  feeling  of  confidence  is  also  disseminated 
amongst  the  Allies,  for  such  a  freak  exhibition  of  wanton 
devilishness  proclaims  to  all  the  world  that  the  masters  of 
Germany  feel  themselves  to  be  beaten.  Obviously  they  have 
ceased  to  hope  for  a  triumphant  march  into  Paris,  so  in  revenge 
do  their  wanton  best  to  destroy  it.  And  it  was  surely  appro- 
priate to  Boche  characteristics  that  this  latest  production  of  the 
Krupp  gunshops  should  have  first  evoked  a  message  of  exulting 
approval  from  Krupp's  partner,  William  Hohenzollern,  and 
be  immediately  thereafter  followed  by  an  Easter  massacre  of 
worshippers  in  a  Paris  church.  There  was  a  fiendishness  re- 
vealed by  the  conjunction  of  such  words  and  deeds  as  seems  to 
have  even  penetrated  the  boar  hides  of  the  Prussian  officials, 
for  they  were  moved  to  express  hypocritical  regret  for  the  crime. 
We  say  "  hypocritical  "  because  they  sought  to  disguise  the 
abominableness  of  the  deed  by  calling  Paris  a  "  fortress."  This 
shows  that  the  brutes  either  themselves  felt  some  flutterings  of 
shame,  or  had  an  uneasy  consciousness  that  the  loathsome  in- 
cident might  not  prove  exactly  a  pleasing  one  to  their  Catholic 
fellow-citizens.  We  hope  it  is  true  that  one  of  the  guns  has 
burst  and  killed  all  who  served  it.  Such  monsters  can  do 
nothing  else  than  burst  after  they  have  revealed  the  profundity 
of  criminal  insanity  to  which  the  madness  of  Pan-Germanism 
and  the  lust  of  slaughter  have  brought  the  German  nation  down. 
People  still  bewail  the  "  defection  of  Russia,"  as  they  call  it, 
but  Russia  has  not  betrayed  us,  not  the  Russian  people  on  their 
own  motion  and  of  deliberate  purpose.  The  Russian  people  them- 
selves have  been  betrayed  by  a  faction  whose  Slavic  idealism, 
let  us  recognise,  has  not  been  wholly  evil  in  origin  and  pur- 
pose, and  out  of  whose  mistakesi  a  new  Russia  may  arise,  is 
arising.  And  will  not  the  very  eclipse  and  misfortunes  of  a 
temporarily  submerged  Russia  facilitate  the  arrangement  of  an 
enduring  peace,  make  more  easy  the  re-establishment  of  a 
free  Poland  in  the  fullest  meaning  of  the  name,  the  settlement 
of  Rumanian  claims  over  Transylvania  and  Bessarabia,  and 
even  render  more  easy  the  adjustment  of  the  duties  of  Western 
Powers  in  Asia  Minor,  onoe  the  arch-enemy,  Prussian  mili- 
tarism, has  been  destroyed?  And  will  not  the  change  wrought 
in  Greece  sinxie  Constantine  the  traitor  was  packed  off  help 
much  towards  a  settlement  of  the  Balkan  wrangle,  and  towards 
the   final    extinction    of   Turkish     oppression     in     Europe,    in 

■!5^*?  '  ^"^  *''*"S  *^  Syrian  coast  of  Asia  Minor?  We  de- 
cidedly think  so.  The  way  of  peace  is  being  prepared  for  all 
'"« '''™«..even  as  the  Allies  fight  on  and  suffer. 

There  is  sti^l  alarm  expressed  in  places  lest  the  Germans 
should,  get  back  their  colonies,  and  we  see  that  New  Zealand 
19  again  exciting  itself  over  the  fate  of  Samoa.  Is  there  any 
need  for  agitation  over  the  fate  of  these  colonies  now  when 
the  end  is  comimg  in  sight,  an  end  which  will  seal  the  doom  of 
the  L.erman  Empire  for  ever?  Thanks  to  our  prolonged  re- 
sistance and  to  the  supremacy  of  the  AUied  power  on  the  sea  ; 
thanks  also  to  Crerman  U-boat  infamies,  German  ships  wiU  no 
longer  be  free  of  .the  ocean.  The  damages  must  first  be  made 
good,  and  with  neither  a  trade  to  sustain  and  expand  nor  ships 
to  convey  goods  in,  how  can  Germany  have  colonies?  General 
Smuts  need  not  tear.  The  world  will  not  see  "  a  fresh  instal- 
ment  of  nmhtansm,  fresh  scheming  and  preparing  and  arming 
o.  this  generation  for  the  greater  struggle   which   must  engulf 

he  next  as  a  result  of  this  war."     We  cannot  doubt  but  that 

Alii  T'l     ^  satisfactory  to  the  long-suffering  and  war-wearv 

^Lit\-  "^u^'  ^""^  <=^"  ^'^  '^  t°  refresh  our  courage  bV 
meditatmg  on  these  thing-s,  and  noting  the  way  we  have  been 
led.  Thus  refreshed,  we  become  immovable  in  the  resolution 
to  endure  all  things,  and  to  stop  at  no  sacrifice  until  a  victory 
the  world  needs  is  won.  Is  each  of  us  giving  all  he  can  save 
or  spare  to  tmure  this  victory? 

A  welcome  de^ne  is  shown  by  last  week's  report  of  losses 
by  submarine.  The  previous  week,  ended  March  21,  was  a 
bad    ont.    showing    15   large  vessels  and  9  small   sent    to   the 


bottom.  I^st  week  only  5  large  and  6  small  were  sunk,  together 
with  4  fishing  craft.  These  are  the  figures  after  adjustment 
the  actual  number  returned  for  the  past  week  being  6  ships 
of  1,600  tons  and  over  and  7  of  less  than  that  tonnagf,  together 
with  5  fishing  vessels,  but  in  each  class  one  vessel  is  included 
which  had  been  ."iunk  at  an  earlier  date.  Thus  the  return 
shows  a  redniotion  of  9  in  the  week's  devastation.  Altogether 
4,795  ships  came  to  and  went  from  our  ports,  or  164  fewer  than 
in  the  previous  week,  but  a  number  still  well  ahove  the  recent 
average,  so  that  the  percentage  of  losses  was  again  unusually 
low,  and  we  hope  this  diminution  will  be  maintained,  nti 
always  to  the  same  degree,  but  in  a  curve  tending  downwards 
month  by  month.  The  average  for  the  month  of  March  wa.s  a 
little  over  19  vessels  a  week  of  all  sizes,  and  that  was  hiyh 
compared  with  the  January  average.  We  look  to  April  to  do 
better,  to  beat  January.  Against  the  French  the  German  sub- 
marine had  no  success  at  all  last  week,  no  French  steamers 
having  been  sunk.  I  nfortunately,  it  was  otherwise  with  Itav 
three  of  whose  ships  of  1,500  tons  and  upwards  were  sunk  '  ' 
I-riday  morning  brings  us  the  news  that  the  German  offen- 
sive has  been  resumed,  and  that  renewed  efforts  are  being 
made  by  massed  avalanches  of  troops  to  penetrate  our  ranks 
anddiive  through  them  into  Amiens,  thus  putting  a  wedge  in  be 
tween  our  armies  and  thoseof  France.  There  is  nothing  to  be  sur- 
prised at  in  this  news,  because  the  German  high  command 
have  got  their  armies  into  such  a  tangle  and  placed  them  in 
such  danger  on  the  flanks  that  they  dare  not  sit  still  They 
must  try  to  drive  forward,  no  matter  what  the  cost,  for  hunger 
also  pushes  them,  and  we  are  glad  that  it  is  so,  because  the 
more  they  strive,  the  more  they  will  be  defeated,  and  the  war 
will  the  sooner   end. 


The  Week  in  Minos. 

Business  in  the  Mining  Markets  has  been  very  restricted  thi, 
week,  owing  chiefly  to  fears  on  the  part  of  members  as  to  the 
aislocating  effect  of  the  Governments  new  man-power  pro- 
posals It  IS  felt  that  they  must  have  the  result  of  causing 
the  offices  to  reorganise  their  staffs  again— a  very  diflicult  pro- 
cess on  this  occasion,  owing  to  the  scarcity  of  substitutes 
trained  or  untrained.  The  only  market  in  which  there  has  been 
any  marked  activity  his  been  that  for  Cornish  tin  shares,  which 
have  been  very  active  and  buoyant. 

South  a.nd  West  Africans. 

In  the  South  African  market  prices  have,  with  few  excep- 
tions, shown  a  persistent  downward  tendency.  Biakpans  have 
fallen  -jL  to  4},  New  Modders  to  22J,  Modder  Deeps  to  7,  City 
Deeps  to  2||,  Crowns  to  i^^,  and  Crtjerz  to  13s.  6d.  On  the 
other  hand,  Modder  Leases  have  recovered  to  3  19-32,  after 
touching  3J,  and  Springs  at  3!^  and  Sub-Nigels  at  i  "9-32  are 
both  higher  on  the  week.  Rand  Mines  ha.ve  risen  J  to  2J,  but 
Central  Minings  have  declined  J  to  5I.  Both  these  companies 
are  interested  in  the  British  CeUulose  and  Chemical  Manufac 
turing  Co.,  which  has  just  been  formed  with  a  capital  of 
;f3, 500,000.  This  company  is  already  making  very  large  profits 
through  its  subsidiary  concern,  and  plans  have  been  made  by 
arrangement  with  the  Ministry  of  Munitions  for  spending  up  to 
about  ^5,000,000  out  of  profits  on  works  extensions.  Both 
Vickers  and  Nobels  are  interested  in  the  concern.  In  the 
Rhodesian  department,  Chartereds  have  been  firm  at  14s.  9d., 
but  Rezendes  have  declined  tV  to  4^,  and  Tanganyikas  at  3^ 
and  Zambesias  at  23s.  are  both  lower.  Diamonds  have 
weakened,  including  Jagersfonteins  to  4^.  despite  the  main- 
tenance of  the  dividend  at  4s.  per  share.  Among  West  Africans 
Ashanti  Goldfields  have  declined  to  20s.  on  the  reduction  in 
dividend. 

Copper  and  Miscei.laneois. 

In  the  Copper  group,  Rio  Tintos  rose  i  to  64,  on  the  increase 
in  profits  sljo.wn  in  the  report,  but  Mount  Elliotts  have  de- 
clined J  to  3j.  Broken  Hill  shares  are  mostly  lower,  but  the 
falls  are  slight.  Nigerian  fin  shares,  though  lower  on  the 
week,  are  above  the  lowest  points  touched.  Tin  Areas  have 
been  notably  firm  at  7s.  3d.,  in  anticipation  of  a  good  report  for 
the  period  ended  May  last.  Cornish  tin  shares  have  been 
especially  active  and  strong,  under  the  lead  of  South  Croftys. 
These  have  been  in  strong  demand  on  rumours  that  the  recent 
developments  have  been  exceptionally  favourable.  The  share- 
show  a  rise  of  12s.  6d.,  to  the  record  price  of  45s.  East  Pools 
have  advanced  3s.  6d.  to  30s.,  the  report  creating  a  very  favour 
able  impression,  while  Geevors  are  2s.  9d.  higher  at  23s.  Rus- 
sian shares  are  easier.  Irtysh  Corporations  have  been  un- 
affected at  If  by  the  calling  of  a  special  meeting  to  approve 
the  transfer  of  the  control  to  the  British  Canadian  Corporation 
under  the  scheme  explained  at  the  last  meeting. 

~MI  m  N  G~N  E  W  S ; 

East  Pooi,  and  Agar. — The  report  for  191 7  shows  that  the 
nett  profit  amounted  to  ;£59.65i,  an  increase  of  ;f37,i66.  It 
is  proposed  to  pay  a  final  dividend  of  3d.  per  .share,  making 
IS.  3d.  in  all,  or  25  per  cent.,  as  compared  with  15  per  cent, 
for  igi6,  and  to  raise  the  carry  forward  from  ;f5,843  to  ;f36,876. 
In  view  of  future  expenditure  contemplated,  both  as  regards 
irxreasing  the  machinery  and  plant  of  the  mine,  and  more  ex 
tejisive  underground  developments,  which  will  involve  largr 
additional  capital  expenditure,  the  directors  consider  it  prudent 
to  increase  the  cash  reserves,  and  to  capitalise  £zo,aoo  of  the 
undistributed  profits.  They  therefore  propose  to  increase  the 
capital  to  ;£i2o,ooo  by  the  creation  of  80,000  shares  of  5s.  each, 
which  will  be  distributed  among  the  shareholders  in  the  pro- 
portion of  one  fully-paid  share  for  every  five  shares  held  by 
them. 


April  6,  1918. 


Zbc  Jnvestots'  IRevieW. 


349 


Rhodesian  Mineral  Output.— The  production  of  gold  in 
February  declined  sharply,  the  total  showing  a  decline  of  £21,774 
.on  January,  and  of  /57-711  on  February.  1917.  The  following 
table  shows   the   production  since  January,  1914  ;— 


Month. 


1914. 


January  . .. 
February    . 

March 

April    

May 

June 

July 

August 

September. 
October  . . . , 
Nov«aiber  . 
December  . 


£ 
249,033 
359,888 
373,236 
295.907 
290,062 
306,421 
320,670 
316,972 
309.398 
337,241 

31>.7'I 
309,669 


Totals..!  3,580,207 


I9'5- 


£ 
293,133 
286,789 
299,686 
315.541 
318,898 

32J.473 
336,565 
344.493 
321,085 
339,967 
313,160 
331.376 

3,823,166 


1916. 


£ 
318,586 
313,769 
335,368 
339,386 
323.783 
333.070 
322.365 
338,001 
322,035 
325,608 
3"7,'35 
306,205 


3.893.3" 


1917. 


£ 
296,113 

289,734 
300,183 
297,977 
299,271 
302,195 
288,731 
294,359 
291,367 
289,978 
275,830 
270,616 


3.495,353 


igi8. 


£ 
353.807 
232,023 


485,830 


The  number  ot  producers  was  lOo,  or  i  less  than  in  January, 
and  the  output  ot  other  metals  was  15.599  ounces  of  silver,  33,096 
tons  of  coal,  305  tons  of  copper,  361  tons  of  asbestos,  5  tons 
of  chrome  ore,  i  ton  of  wollramite,  4  tons  of  arsenic,  and  10 
carats  of  diamonds.  ,        u 

Prinxess  Estate.— a  circular  has  been  issued  to  the  siiare- 
holders  of  this  company  pointing  out  that  the  capital  has  been 
rediuced  to  ^£57,503  by  writing  off  185.  per  share,  and  after- 
wards increased  tfl  £ioy,so3  by  the  creation  of  500,000  new 
shares  of  as.  each.  These  new  shares  have  been  subscribed  for 
at  par  by  Messrs.  A.  Goerz  and  Co.,  and  the  co(ra.pany's  in- 
debtedness to  that  firm  liquidated  out  of  the  proceeds.  New 
shares  are  now  being  offered  to  the  shareholders  in  South 
Africa  in  the  proportion  of  one  new  share  for  each  share  held. 
The  Treasury  has  declined  to  pennit  the  offer  of  the  shares  to 
shareholders  resident  in  this  country,  which,  in  the  circum- 
stances, seems  quite  reasonable.  If  the  money  can  be  pro- 
vided in  South  Africa,  it  ought  not  to  be  sought  hare. 

H.E.  Proprietary.— The  report  for  the  14'  months  ended 
December  31  shows  a  surplus  of  ;fio,23i,  which  is  transferred 
to  a  general  reserve  account.  A  contract  for  tlie  sale  of 
■certain  claims  in  the  Nigel  district  to  Sub-Nigel,  Ltd.,  for 
shares  in  that  company,  has  been  completed.  A  provisional 
contract  has  also  been  made  for  the  purchase  of  the  Farm 
Klippoortje,  No.  228  (Northern  portion),  Heideilberg.  The 
directors  are  advised  thait  the  whole  of  the  property  is  tra- 
versed by  the  maiji  reef  series  at  an  easily  workable  deipth. 
The  purchase  price  is  200,000  shares  of  los.  each.  It  is  pro- 
posed to  co-operate  with  owners  of  adjoining  property  in  a 
comprehensive  scheme  of  boring,  with  a  view  to  flotation  as  a 
separate  company. 

Pengkalen. — The  profits  of  .this  tin  company  for  the  year 
ended  Sep^em.ber  30  were  ^10,850.  Dividends  of  12I  ,per  cent, 
have  been  paid  on  the  preference  shares  and  of  2J  per  cent, 
on  the  ordinary  shares  ;  ;<,'4,ooo  is  written  off  for  depreciation, 
and  the  carry  forward  is  raised  from  ^552  to  ;{^3,902. 


DIVIDENDS     ANNOUNCED. 

American  Cyanamid  Co. — $3  per  share  on  account  of  arrears 
of  preferred  dividend  will  be  paid  to  stockholders  on  May  i. 
Preferred  share  certificates  registered  in  the  name  of  Messrs. 
Sperling  and  Co.  may  be  presented  at  their  office,  Basildon 
House,  Moorgate  Street,  after  the  15th  inst.,  for  purpose  of. 
claiming  dividend. 

Barsi  Light  Railway  Co. — Interim  3  per  cent.  (6s.  per  share) 
in  respect  of  year  to  March  31,  1918,  payable  on  April  26.  A 
year  ago  8s.  per  share  was  paid. 

Cunard  Steamship  Co. — 10  per  cent.,  less  tax,  with  bonus  of 
equal  nominal  amount  of  fully-paid  5  per  cent.  War  Loan 
Inscribed  stock,  tax  free,  payable  April  22.  Amounts  of  bonus 
under  ^^'i  will  be  paid  in  cash. 

Cheviot  Rubber. — Final  5  per  cent,  (actual)  in  respect  of 
•  917,  making  10  per  cent,  for  year;  reserve,  ^^5,000;  forward, 
^25,500  (subject  to  excess  profits  duty).  15  per  cent,  for  1916, 
with  £c),ooo  to  reserve  and  ;^  11,704  forward. 

Central  Provinces  Prospecting  Syndicate. — Final  8  per  cent., 
with  8  per  cent,  bonus,  making,  with  interim  8  per  cent,  paid 
in  October,  24  per  cent.,  less  tax,  for  year  1917,  same  as  for 
previous  year. 

Credito  Italiano. — 7  per  cent,  for  year  1917;  5,000,000  lire 
to  statutory  reserve  account,  and  i  ,000,000  lire  to  a  new  reserve 
account.    6  per  cent,  a  year  ago,  with  2,500,000  lire  to  reserve. 

Damansara  (Selangor)  Rubber  Co. — Third  interim  15  per 
cent,   (less  tax)  on  account  of  year  1917. 

Hope  Brothers. — At  rate  of  8  per  cent.,  less  tax  (against  (> 
per  cent.),  making  6  per  cent,  for  year,  plus  bonus  of  2  per 
cent.  To  reserve  and  contingency  fund,  ;^ii,ooo;  forward, 
about  ;^20,ooo. 

Joseph  Travers  and  Sons. — 10  per  cent  ,  the  same,  and  bonus 
of  IS.  per  share  on  ordinary  shares,  for  year  ended  Jan.  31, 
A  year  ago  no  bonus  was  paid. 

Lima  Light,  Power,  and  Tramways  Co. — i^  per  cent,  on 
shares  payable  against  Coupon  No.  16  in  London  by  Messrs. 
Grace  Brothers  and  Co.,  144,  LeadenhiU  Street,  E.C. 

Malakoff  Rubber  Co. — Final  15  per  cent.,  against  20  per 
cent,  a  year  ago.     $25,000  to  reserve  and  $75,000  forward. 

Plymouth,  Devonport,  and  South-Western  Junction  Railway. 
3^^  per  cent,  per  annum  for  second  half  of  1917  on  ordinary 
stock,  same  as  a  year  ago. 

Sungei  Reyla  (F.M.S.)  Rubber  Estate. — Interim  2J  per  cent., 
free  of  tax,  on  account  of  1917,  payable  April  10. 


Tharsis  Sulphur  and  Copper  Co. — 12^  per  cent.,  equal  to  5s. 
per  share,  payable  tax  free,  for  191 7,  after  writing  ofi  ;^3o,74o. 
A  year  ago  15  per  cent,  was  paid,  after  wiiting  off  ;£23,3is. 

Transvaal  Gold  Mining  Estates. — 3J  per  cent.  (9d.  per  share) 
for  period  ended  March  31,  1918.    A  year  ago  5  per  cent. 

Val  de  Travers  Asphalte  Paving  Co. — Further  4  i-5d.  per 
.share,  less  tax,  making  7  i-5d.  per  share,  or  3  per  cent,  for 
1917,  same  as  tor  1916. 

Virginia  (Carolina)  Chemical  Co. — Usual  quarterly  2  per 
cent,  (being  at  rate  of  8  per  cent,  per  annum)  on  the  preferred 
stock,  payable  April  15;  also  75  cents  per  share  on  common 
stock,  payable  May  i. 

Weardale  Lead  Co. — Interim  is.  per  share  (free  of  tax), 
payable  on  April  15,  same  as  a  year  ago. 


Shipping  Output  Improving. 

The  Secretary  of  the  Admiralty  announces  that  the  tonnage 
of  merchant  vessels  completed  in  I'nited  Kingdom  yards  and 
entered  for  service  during  the  month  of  March,  1918,  compared 
with  preceding  periods,  was  as  under  : — 


March   

April 

May  

June  

July  

August 

Sept*  mber 
October    , . . 
November   . 
December   . 


1917. 


January... 
February . 

March    . . . 


1918. 


Completions. 


Gross  Tons. 
ii8,6gg 
69,711 

69.773 
109,847 

83,073 
102,060 

63,150 
148,309 
158,826 
112,486 

58,5f8 
100,038 
161,674 


Yor  Knding. 


1917. 

March  31 

April  30  

May  31 

June  30    

July  31 

August  31   

September  30    . 

October  31 

November  30    . 
December  31. ., 

1918. 

January  31 

February  28  . . . 
March  31 


Completions 


Gross  Tons. 

692,225  ■ 

749,314 

773.116 

833,863 

865,147 

928,470 

957,185 

1,045,036 

1.133.336 

1.163,474 

1,173  953 
1,194.540 
l.237.5'5 


The  figures  for  last  month  (March)  of  161,674  tons  constitute  a 
record,  and  demonstrate  that  the  workers  (have  taken  to  heart 
the  anxiety  caused  by  the  comparatively  low  output  of  January 
and  February  of  58,568  tons  and  100,038  respectively.  It  will 
be  seen  that,  although  there  are  fluctuations  in  the  output  of 
individual  months,  the  annual  output  shows  a  steady  upward 
tendency.  Owing  to  the  heavy  falling  off  in  January  and 
February  the  figures  for  the  past  quarter  are  disappointing,  but 
with  the  more  energetic  policy  now  in  force  the  deficiency  will 
soon  be  made  good  if  the  March  level  is  maintained  or  ex- 
ceeded.  

OILFIELDS     PRODUCTION. 

Baku   Russian   Petroleum.— Week  ended   February  23,  61,540 
poods. 
United  British  Oilfields.— Week  ended  March  27,  2,389  tons. 


New  Zealand. 


A  Wealthy  Country,  Splendid  Climate,  Fertile 
Soil,  Plenty   of   Water. 

An  Ideal  Country  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  population,  has  an 
annual  export  of  raw  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IRON,  TIMBER, 
GUM,  GOLD  AND  SILVER.  Total  yield  ol  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  have  been  advanced 
by  GovemmenttoFarmersand  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 
The  Railways,  3,000  miles.  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State. 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  new 
country.  New  Zealand  offers  solid  advantages. 
Excellent  Steamship  Services  are  txsa  direct  to  New 
Zealand  by  the  Shaw  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Shipping  Company, 
Limited,  and  the  Federal  and  Shire  Lines. 


Full  information  is  supplied  free  by 

THE  HIGH  COMMISSIONER  FOB  NEW  ZEALAND. 

413^16,  STRAND,  W.C  2. 


35° 


Zbc  Jnveetocs'  IRepiew 


Tea,  Oil  and  Rubber. 

It  U  really  amusing  to  follow  the  painful  efforts  of  the 
chairmen  of  rubber  companies  to  find  reasons  for  supporting 
the  restriction  of  output  policy.  In  the  forefront  we  usually 
find  the  lack  of  shipping  facilities.  There  is  an  old  saying 
about  "getting  your  pigs  to  market,"  and  the  .same  surely 
applies  to  rubber;  if  the  commodity  cannot  be  sent  to  the 
factories  it  had  much  better  be  left  in  the  trees,  where  it  costs 
almost  nothing  for  storage  accommodation.  That  is  the  nio.st 
elementary  form  of  common  sense,  and  we  have  not  such  a 
poor  opinion  of  the  ability  of  estate  managers  as  to  think 
that  they  require  all  the  weight  of  the  Rubber  Growers'  Associ- 
ation and  a  vigorous  Press  campaign  to  take  the  course  which 
is  dictated  by  the  most  ordinary  kind  of  prudence.  At  the 
meeting  of  the  Labu  Company,  Colonel  Leather  elaborated 
this  point  with  many  embroideries.  The  storing  of  large 
stocks  would  nece.ssitate  the  erection  of  extra  warehouses,  at 
a  time  when  finances  are  short  and  materials  difficult  to 
obtain.  Then  the  climate  would  almost  certainly  have  a  dele- 
terious effect  on  the  material,  and  a  large  amount  of  capital 
would  be  tequired  to  finance  the  .stores.  On  the  other  hand, 
cutting  down  the  output  would  allow  many  of  the  trees  to  be 
rested,  and  there  would  be  a  saving  of  labour.  Finally,  "  the 
restriction  of  output  should  have  some  beneficial  effect  upon 
prices,"  and  that  is  the  crux  of  the  whole  matter.  We  do  not 
in  the  least  blame  the  companies  for  trying  to  maintain  prices 
although  we  think  the  policy  is  foolish  and  may  prove  danger- 
ous, but  it  surely  did  not  require  all  this  fuss  and  threats  of 
compulsion  to  do  what  is  right  and  prudent,  and  we  are 
rather  inclined  to  think  that  the  supporters  of  tlie  scheme  have 
really  at  the  back  of  their  heads  an  idea  that  they  can  control 
prices  and  make  consumers  pay  much  more  than  the  teal 
market  value  of  the  material.  If  so,  they  will  find  themselves 
grievously  mistaken    before   very   long. 


April  6,   1918. 


COMPANY    RESULTS    IN     BRIEF. 


Name  and 

Accounting 

Period. 


Gross 
Profit. 


Aplin  and  Barrett  ..(Dec.) 

Do Prev. 

Barry,  Ostlere,  and  Shep 
herd    (Jan.) 

Do Prev 

Charles  Baker  &  Co . .  (Jan . ) 

Do Prev. 

Mirrlees  Watson  Co.  (Dec.) 

Do Prev. 

Owen  Owen (Feb.) 

Do Prev. 

Slazenger's (Dec.) 

Do Prev. 

T.  y.  Harries  &  Co.  (Feb.) 

Do Prev, 

Workington  Brwry..(Feb.) 

Do Prev 


£ 

71,600 

71.300 

1340980 
1099130 
35.830 
32,020 
38,980 
34.160 
40,940 
31.130 
38,150 
31.760 
17,560 
9.680 

35.140 
29,920 


Nett 
Profit. 


£ 

66,850 
64,900 

112,600 
78,300 
14.340 
15.960 
32,020 
30,690 
34.670 
28,490 
18,990 
16,230 
16,330 
8,780 
17.150 
14.750 


25,000 

10,000 

6,500 

5.500 

100,000 

80,000 

30,000 

30.000 

47.350 

42,200 

27,000 

15,000 

35.000 

32,000 


Divi- 
dend. 


% 
20 
20 

8 
8 
8 
8 

12J 
10 
29 
16 

6 

4 

5 
nil 
10 

6 


Carried 
For- 
ward. 


£ 
51,100 

41.150 

71.560 

31.920 

1.410 

2,770 

7,260 

6,960 

9,600 

7.030 

16,180 

14,260 

1,680 

2,780 

13.350 

8.500 


Answers  to  Correspondents. 

Sims.— We  are  doubtful  and  see  no  immediate  rise,  although 
the  price  tempts  and  may  cause  a  jump  one  day. 

C.  A.— Well,  take  it.  But  at  the  same  time  the  shares  may 
rally  on  the  power  given  to  raise  charges. 

Rustic— We  see  little  in  their  favour,  although  the  price 
has  crept  up  lately.  But  you  might  perhaps  buy  a  few  if 
prepared  to  hold.  =        t-         r         / 

Good  Interest.— Good,  but  not  cheap  these  days.  They  pay 
little  more  than  5  per  cent.  j    f  j 

II.  I).  T.— Yes.  There  is  nothing  else  to  be  done,  although 
the  road  is  still  a  long  one. 

M.  F.  R.— Yes,  quite  a  good  debenture  of  its  class,  but  not 
likely  to  appreciate  just  now. 

Dover.— Only  if  you  can  sell  to  clear  all  expenses  and  leave 
yourself  a  little  to  cover  loss  of  interest. 

^;.  J-  ''"^  further  rise  is  quite  possible,  but  the  present 
conditions  are  abnormal.  Under  the  circumstances  we  should 
advise  you  to  sell  half. 

L.  CD.— We  do  not  care  to  recommend  the  office  you  men- 
tion.  If  you  will  send  us  particulars  of  age  we  will  send  you 
the  name  of  an  office.  ^ 

Maltster.-(,)  We  think  you  should  sell.  (2)  Cannot  recom- 
mend  a  purchase,  outlook  not  very  encouraging. 

A  k'  *5;"~!^^*i"  "^  prepared  to  wait  it  is  a  fair  lock-up. 
w»li'  »:,.i  *■'  V,  P'^^^^"'  *e  company  is  doing  remarkably 
Thii;.-  .  "^"''^  'u'^'^^y  *°  continue  pro.sperous.  There  is  no 
?,l  ^ ,;?  .*  P"'"<=l'a«^.  but  you  must  watch  them  fairly  closely. 
divi&  "V°"^  financially,  but  no  prospects  of  increase  in 
dUv^dend   at  present,   so   far   as   we  can  see.     Think  might   be 


What    Balance    Sheets    Tell. 

STEWARTS  AND  LLOYDS,    LTD. 

-mmfn.l.'i^.J""/-  '""  y'^'  ''^"='  providing  for  excess  duty 
amounted  to  /454.300,  an  increase  of  /:3c,ooo,  but  general 
charges  were  rather  heavier,  and  after*  again  writing  off 
;^ioo,ooo  for  depreciation  the  nett  profit  is  /-a;  000  up  at 
/.2SS,goo.    With  j^8,ooo  more  brought  in  the  available  balance 


is  ^35,000  higher  at  jf 397,000,  but  the  dividend  and  bonu.s  on 
the  deferred  shares  remain   at  laj  per  cent.,  tax  free,   but  the 
reserve  gets  ;£^  100,000  against  ;i'6o,ooo,  and  the  balance  forward 
IS   reduced   by    /s-ooo    to    ;^io5,9oo.      The  company   is   in   an 
enormously  strong  position,  and  the  shareholders  are  not  likely 
to  grudge  the  directors  the  increase  of  ;,f  4,000  in  their  fees  for 
whi(:h   they   are   asking.      Treasury    sanction     has     now    been 
obtained  for  the  issue  of  the  balance  of  425,000  deferred  shares 
of  jC.i  each,  and  they  will  be  offered  to  existing  holders  at  par 
It    IS   al.so   proposed    to     increa.se     the     authorised     capital    to 
.^3,100,000  by  the  creation  of   an  additional    850,000   deferred 
shares,  so  that  a  further  expansion  of  the  business  is  evidently 
anticipated.      Debentures   amounting    to    ;,f  192,000    fall    to    be 
redeemed  on  July  i  next,  but  this  will  not  cause  any  embarrass- 
ment as  the  cash  in  hand   amounts  to  ;£'47o,ooo  and  there  are 
first-class  investments  for  ;^i, 140,000,   an   increase  of  2s8o,oo.> 
during     the     year.     Creditors     have     increased     /36o,ooo     to 
.^1,346,000,  while   debtors   have  fallen   ;^ 94,000  to    / 1,250,000 
and  stocks  are  slightly    lower    at    ;£69o,ooo.     Expenditure    on 
capital    account,     including    shares    in    subsidiary    companies, 
amounts  to   ^^2,029,000,  against  which  there   is  a  depreciation 
fund  of  ^1,320,000,  so  that  at  all  points  the  company  appears 
to  be   strongly   battressed   against   any  possible  adversity. 
P.  AND  W.  MACLELLAN,  LTD. 
In   1916  the  profits  showed  pn   increase  of  ^^21,000,    and   this 
IS  followed  by  a  further  gain  of  ,^16,000,   raising   the  total  to 
£90,000.     With   ;f  2,000  more,  brought  in,  there  is  a  {>alance  of 
£110,040,    out   of    which   £15,000   is   again    written  off   for   de- 
preoiation  and  ;^25,ooo,  against  £20,000,   is  placed   to  reserve. 
The   dividend   on   both    the   preforence  and  ordinary  shares   is 
raist'd   from    10  per  cent,   to    12  per  cent.,  leaving  £27,300,   or 
,,^7,000  more,   to  be  carried  forward.      Evidently   the  company 
has   h<-id   a  most   prosperous  year,   as  these   results  are  arrived 
at  after   providing   for  excess  duty.      Changes  in  the  balance- 
.sheet    are   not   of   much    significance,    but    ^60,500   of   the   de- 
preciation   fund    has   ibeen   used  to    write    down   buildings    and 
plant,   which  now  stand  at  ^^307,850.     Goodwill  was  wiped  off 
some  years  ago,   and   the  reserve  fund   stands  at  ;^i 75,000.   so 
everything  looks  as  comfortable  as  could  be  wished. 
W.    T.    CLOVER    AND    CO.i    LTD. 
This    "controlled"    establishment    for     the     manufacture     of 
wires  and  cables  only  superficially   seems  to  have  been   doing 
r.^ither   badly.      In   1916  nett  profits  dropped   ;f4,6oo,   and  last 
year  there  was  a  further  decline  of  ;£'9,4oo,  bringing  the  total 
down  to  ^40,449.      But,  all  the  same,  the  dividend  was  raised 
a  year  ago  from  5  per  cent,  to  6  per  cent. ;  this  time  it  is  5  per 
cent.,  but  there  is  a  bonus  of  2^  per  cent,  in  addition,  malting 
yi,  per  cent,  in  all,  .so  that  things  are  evidently  better  than  they 
look.      The  amount  brought  in  was  ^10,400  larger,  making  the 
available  balance  £1,000  up  at  £62,460,  but  the  appropriation  to 
reserve  is  doubled  at  £'20,000,  and  the  carry  forward  is  reduced 
£11,300  to  £'10,770.      Reserve  and   sinking  funds   now  amount 
to  £170,000,  an  increase  of  £27,000,  and  the  balance-sheet  has 
a  very  clean  appearance.  , 

CLYDE  VALLEY  ELECTRICAL  POWER  CO. 
This  company  now  issues  yearly  instead  of  half-yearly 
accounts,  and  for  1917  the  gross  receipts  amounted  to  ,j^342,8oo, 
an  increase  of  ;^78,5oo.  Expenses,  however,  rose  ;f88,5oo  to 
;^253,5oo,  fuel  costing  £'25,000  more  and  taxes  ;f47,ooo  more. 
Consequently  the  nett  revenue  was  ;fio,ooo  less  at  £'89,300, 
while  £50,000,  or  ;f  7,500  more,  is  set  aside  for  depreciation. 
The  balance  allows  of  the  dividend  of  2^  per  cent,  for  the  year 
being  repeated,  and  the  balance  forward  is  reduced  by  £'4,600 
to  ;^2i,i5o.  It  is  explained  that  the  large  increase  in  taxes  is 
due  to  the  payment  of  excess  profits  duty  as  adjusted  at  June  30, 
and  provision  for  the  estimated  as.sessment  up  to  the  end  of  the 
year.  Extensions  to  Clyde's  Mill  Power  Station  have  been 
completed,  and  the  plant  is  now  in  operation,  and  a  further  in- 
stallation of  15,000  k.w.  at  Yokor  Power  Station  is  now  in 
progress. 

PENMANS,  LTD. 
This  well-known  Canadian  business  made  a  gross  profit  last 
year  of  $1,671,000,  while  operating  expenses  amounted  to 
$535,000  and  the  nett  profit  showed  an  incre.ase  of  $270,000  at 
$1,136,000.  After  providing  for  debt  charges  and  depreciation, 
the  ibalanoe  is  $177,000  larger  at  $915,500,  but  the  dividend  le- 
mains  at  5  iper  cent.,  and  $100,000  more  at  $500,000  is  placed 
to  reserve.  The  undivided  surplus  is  increased  by  $135,000, 
and  no\y  amounts  to  $808,000.  while  the  reserve  stands  at 
two  million  dollars.  Current  assets  exceed  li.ntrilities  by 
$2,650,000,  and  everything  looks  prosperous.  It  is  stated  that 
the  sales  amounted  to  $6,80,ooo,  an  increase  of  $1 .050,000  over 
1916,  which,  in  turn,  showed  a  gain  of  $1,097,000  over  1915. 
CANADA  CEMENT  CO.,  LTD. 
Further  substantial  progress  was  made  la-st  year,  and  the 
nett  profits,  after  deducting  $2,190,000  for  depreciation  and 
special  equipment,  amounted  to  $2,861,000,  an  increase  of 
$640,000.  Out  of  this  $400,000  is  placed  to  reserves,  and  the 
dividend  on  the  ordinary  stock  is  raised  from  4J  fer  cent,  to 
6  per  cent.,  while  $484,000  is  added  to  the  undivided  surplus, 
raisiing  it  to  $2,577,000.  Property  account  has  been  reduced  by 
$1,700,000,  land  investments  have  risen  from  $35,000  to 
$915,000.  while  current  liabilities  are  $2,040,000  lower  at 
$634,400.  It  is  stated  that  the  demand  for  the  company's  pro- 
duct was  practically  the  same  as  in  the  two  previous  years, 
in  spite  of  the  fact  that  work  on  many  large  and  important 
projects  was  suspended,  and  the  directors  anticipate  that  the 
current  year  wilt  give  a  fadrly  good  account  of  itself.  The 
ccanpany  has  greatly  strengthened  its  position,  and  the  out- 
look seems  promising. 


April  6,   1918. 


^be  Jnvestots'  IReview. 


35 « 


COMPANY  MEETING. 


THE  SCOTTISH    PROVIDENT  INSTITUTION 


MUTUAL  LIFE  ASSURANCE. 


r 

V^m  The    Soth   annual    general    meeting    was  held   in   Edinburgh 

I^H        j'esterday,  D.  Douglas  Maclagan,  Esq.,  in  the  chair. 

I^B  The  report   for   the  year   1917   states  that  the  new  proposals 

I  c; 


fof   £''3^7fi5^<    ^ntJ  "f  these    1,420  were 


received    were 

completed,  assuring  capital  sums  amounting  to  ;f  1,255,607. 
The  amount  reassured  with  other  offices  was  ;^  11 3,900.  The 
premiums  of  all  kinds,  including  the  price  of  annuities,  but 
after  deducting  sums  paid  for  reassurance,  were  ;^789,2i3. 
The  total  receipts,  including  interest,  amounted  to  ;f  1,374,220. 
The  accumulated  funds  amounted  at  December  31,  1917,  to  the 
sum  of  ;^i6, 129,002.  The  claims  under  1,095  policies  by  the 
deaths  of  824  members  were  ^887,786,  and  the  claims  by  sur- 
vivance  under  endowment  policies  ;^  110,797,  making  the  total 
claims  for  the  year   ^^^998, 583. 

The  Chairman,  in  moving  the  adoption  of  tlic  report,  said  : 
Although  I  am  not  in  a  position  to  submit  to  you  results  quite 
as  favourable  as  those  which  were  available  to  our  chairman  of 
last  year,  I  think  that  I  may  confidently  assume  your  satis- 
faction with  the  amount  of  new  business  which  we  are  able  to 
report.  When  we  consider  that  the  bulk  of  the  insurable  por- 
tion of  the  population  is  engaged  in  the  Great  Adventure,  and 
that  by  their  side  are  many  of  those  who  have  been  most 
efficacious  in  procuring  business  for  the  Institution  in  the 
past,  we  may  well  be  gratified  that  the  harvest  is  so  plenteous 
a  one  in  view  of  the  fact  that  the  labourers  are  so  few.  We 
are  all  the  more  indebted  to  those,  bot,h  at  the  Head  Office  add 
at  the  Branches,  to  whose  assiduous  and  successful  exertions 
the  results  in  your  hands  are  due.  New  assurances  of  over 
one  million  and  a-quarter  under  the  present  adverse  con- 
ditions may   well   be  viewed  as  satisfactory. 

The  figures  relating  to  the  annuit)'  business  show  that  while 
the  price  received  is  smaller  than  in  igi6,  and  greatly  less 
than  was  customary  in  pre-war  days,  the  number  of  contracts 
issued  and  their  relative  amounts  are  both  higher.  These 
figures  indicate  that  our  annuity  rates  no  longer  offer  the  same 
inducement  to  the  normal  investor  when  placed  in  competition 
with  the  high  returns  which  are  now  obtainable  from  the 
Government.  We  have  been  frequently  urged  to  raise  our 
annuity  rates  in  view  of  the  higher  rate  of  interest  now  pre- 
vailing; but,  owing  to  the  counteracting  effect  of  high  Income- 
tax,  and  the  uncertainty  as  to  the  future,  it  has  not  been 
thought  prudent  to  make  any  change  in  the  meantime.  In  the 
same  way  there  has  been  a  marked  fallingoff  in  the  amount 
received  by  way  of  single  premiums  for  life  assurances;  and 
to  that  extent  the  smaller  addition  to  the  Realised  Funds  com- 
pared with  what  in  former  days  was  usual  is  accounted  for. 

War  Claims. 

A  special  interest  attaches  to  the  incidence  of  mortality 
during  the  war.  Last  year  there  was  again  a  large  addition 
to  the  war  claims,  amounting,  as  stated  in  the  report,  to 
;^ii4,ooo.  As  you  are  aware,  it  was  decided  by  the  Associa- 
tion of  Life  Offices  at  the  beginning  of  the  war  that  no  extra 
premiums  would  be  exacted  from  non-military  members  called 
to  active  service,  and  consequently  the  general  body  of  the 
policyholders  have  in  one  form  or  another  to  bear  the  losses. 
No  doubt  this  is  as  it  should  be,  and  it  has  certainly  been  a 
very  important  contribution  to  the  country's  welfare.  Up  to 
now  the  war  claims  falling  upon  the  Institution  have  amounted 
to  about  ;f  400,000 ;  and  these  being  almost  entirely  under 
policies  on  the  lives  of  young  men  whose  assurances  were  taken 

Jout  comparatively  recently,  the  total  premiums  received  under 
these   policies   were    necessarily    small    in    amount,   and   conse- 

"quently  the  nett  loss  to  the  office  is  very  little  less  than  the 
actual  amount  of  the  claims.  Hitherto  we  have  been  able  to 
state  from  year  to  year  that  the  claims  by  death  have  largely 
fallen  among  the  oldest  class  of  [X)licies  which  in  ordinary 
course  would  have  a  comparatively  short  future  duration,  and 
for  which  the  office  had  in  hand  reserves  approximating  to  the 
full  amount  of  such  claims.  This  would  still  hold  good  for 
this  year  if  the  war  claims  could  be  eliminated,  though  for 
the  time  being  it  has  to  be  somewhat  modified.  We  have, 
however,  the  satisfaction  of  knowing  that  payment  of  these 
claims  has  helped  materially  to  lighten  the  burden  of  the  war 
in  many  a  home. 

Funds. 

We  have  completed  the  fourth  year  of  this  quinquennium, 
and  for  practically  the  whole  of  that  period  the  affairs  of  this 
and  other  kindjed  Institutions  have  been  under  the  influence 
of  the  great  war.  The  report  makes  reference  to  the  heavy 
burdens  upon  us  all  for  which  that  catastrophe  has  been  re- 
sponsible. One  of  these  is  the  depreciation  in  the  value  of 
securities,  most  marked  perhaps  in  the  case  of  American  securi- 
ties, caused  by  the  entry  of  the  United  States  into  the  war — an 
event  of  the  most  far-reaching  importance.  From  that  depre- 
ciation recovery  is  onl^  a  question  of  time,  since  it  is  caused 
j  not  by  any  deterioration  in  the  intrinsic  value  of  the  securities, 
f  but  because  the  United  States  has  been  marshalling  its  financial 
resources  as  whole-heartedly  as  those  which  are  military  and 
naval.  It  will  be  noticed  that  there  is  an  entry  in  the 
accounts  of  ;^I3,I44  as  loss  on  realisation  of  securities  during 
the  year,   and  it  has  been   thought  desirable  to   write  off   at 


the  present  time  a  further  sum  of  ^135,000  from  certain  other 
Stock  Exchange  and  heritable  securities,  ithus  (leaving  ;th» 
funds  at  the  end  of  the  year  at  ;f  16,129,000.  I  may  refer  also 
to  the  item  in  the  balance-sheet  of  /'41 7,200  "Temporary  Ad- 
vances." This  represents  the  balance  outstanding  at  the  end 
of  the  year  of  a  larger  sum  borrowed  from  our  bankers  on 
security  of  War  Loan  Stock  in  order  to  enable  the  Institution 
to  increase  its  holdings  in  Government  securities.  This  loan 
has  since  been  repaid,  with  the  exception  of  a  small  balance, 
and  the  investments  in  British  and  Allied  Government  War 
securities,  together  with  the  amount  of  the  securities  on  loan 
to  the  Treasury,  now  represent  rather  more  than  one-third  of 
the  Institution's  funds. 

Insurance  as  an  Investment. 
As  a  result  of  the  war  there  have  passed  into  the  English 
vocabulary  certain  new  words  and  phrases.  Among  these  is 
one  which  has  of  late  received  some  oon.siderable  attention  in 
the  Press  of  the  country,  and  has  been  the  occasion  of  a  Parlia- 
mentary debaite.  I  refer  to  what  is  vaguely,  but  alluringly, 
called  the  "conscription  of  wealUi  "  or  the  "conscription  of 
capital."  It  is  satisfactory  that  the  leader  of  the  Liberal  party 
took  the  opportunity  that  presented  itseH  in  the  House  of  Com- 
rnons  of  declaring  that  anything  in  the  nature  of  repudiation  of 
our  national  obligations,  however  it  might  be  veiled  or  dis- 
guised, was  a  thing  which  this  country  would  never  contem- 
plaite  and  could  never  pursue.  That  is  a  most  important  de- 
claration, because  the  phrase  to  which  I  am  referring  has  been 
utilised  to  indicate  a  method  which  might  be  adopted  as  a 
means  of  hastening  the  reduction  of  our  unwieldy  National 
Debt.  However  much  or  however  liittle  the  "  conscription  of 
weakh  ■'  may  suggest  to  different  types  of  mind,  it  seems  un- 
thinkable that  Life  Assurance  funds  .should  be  the  object  of  any 
predatory  attack.  Life  Assurance  Societies,  especially  Mutual 
Societies,  do  not  stand  for  the  wealth  but  for  the  thrift  of  the 
country ;  and  any  action  that  would  interfere  with  the  imple- 
menting of  the  contracts  which  they  have  miade,  would  be- 
token a  d€(parture  from  what  is  described  in  the  utterance  re- 
ferred to  as  "  our  unimpeachable  credit."  Indeed,  the  impo- 
sition of  any  levy  that  would  kill  thrift,  or  even  discourage  it, 
would  be  fatal  to  the  nation's  prosperity.  And  I  would  point 
out  that  to  those  who  look  for  an  investmenit  beyond  the  reach 
of  risk  at  the  hands  of  unscrupulous  raiders,  a  policy  of 
assurance  shoold  very  strongly  afipeaJ.  Moreover,  in  the  time 
of  reconstruction  after  the  war  there  will  be  a  great  dearth  of 
capital,  and  to  those  requiring  facilities  from  their  bankers,  no 
more  acceptable  security  can  be  offered  as  collateral  than  that 
of  a  life  policy  under  the  distinctive  system  of  our  own  Institu- 
tion. Our  premiums,  while  low,  are  not,  as  under  some  non- 
profit tables  recently  issued,  unduly  low,  and  3'et  they  do  not 
deprive  the  policy-holder  of  the  expectation  that  in  due  time 
he  will  share  in  the  profits  of  the  Institution — restored,  as  we 
may  anticipa.te,  to  their  former  level  by  victory  and  a  lasting 
peace.  It  should  never  be  overlooked  that,  after  all,  the  main 
object  of  an  assurance  piolicy  should  be  to  secure  from  its 
initiation  the  largest  possible  measure  of  protection,  and  hero, 
again,  a  policy  with  the  Scottish  Provident  affords  the  Assurer 
his  readiest   opportunity.  ^ 

W^OMEN    W'ORKERS. 

In  one  of  the  "  Obiter  Scripta  "  which  he  is  contributing  to 
the  Forl/iighlly  Review,  Mr.  Frederick  Harrison  expresses  it  as 
his  opinion  that  in  these  days  of  violent  changes  one  of  the 
most  striking  of  all  is  the  new  strength  and  place  in  human 
society  in  which  women  now  find  themseHes.  I  feel  sure  that 
most  of  us  will  a^ree  with  him  in  this,  as  we  cannot  fail  to 
have  bsen  struck  not  only  by  fheir  ubiquity  but  also  by  their 
versatility.  In  many  walks  of  life  we  find  them  doing  work 
formerly  entrusted  almost  exclusively  to  men,  and  they  do  that 
work  well.  Having  this  revolution  in  the  national  life  in  view, 
the  directors  sanctioned  the  preiparation  of  a  scheme  for  the 
assurance  of  women  workers,  and  while  our  exj>erience  of  it 
has  been  of  comtparativcly  short  duration,  we  have  seen  enough 
of  its  operations  to  feel  confident  that  it  will  not  only  be  of 
great  service  to  the  women  themselves,  but  that  it  will  be  the 
means  of  adding  not  immaterially  to  the  nuinber  of  assurances 
effected  in  this  Institution. 

From  the  list  of  Honorary  Directors  the  name  of  the  Hon. 
Lord  Guthrie  will  be  missed.  In  the  course  of  last  year  public 
attention  was  drawn  to  the  undesirability  of  Judges  of  the  Court 
of  Session  holding  the  office  of  Ordinary  Director,  and  although 
that  of  Honorary  Director  was  not  open  to  the  .same  objection, 
his  Lordship  felt  himself  constrained  to  interpret  the  move- 
ment in  its  widest  sense.  We  regret  that  we  have  lost  his 
name,  but  we  know  that  his  interest  in  the  prosperity  of  the 
Institution  remains  unabated. 

I  have  already  made  mention  of  the  fine  services  rendered  in 
these  difficult  times  by  those  at  the  Head  Office  and  at  the 
Branches  with  their  greatly  diminished  staffs,  and  it  would  not 
be  easy  to  exaggerate  them.  I  revert  to  the  subject  for  the  pur- 
pose of  saying  that  in  view  of  the  conditions  of  work  and  of 
the  cost  of  living,  a  war  bonus  continues  to  be  paid  to  members 
of  the  staff  in  receipt  of  salaries  below  a  certain  limit.  I  am 
quite  sure  that  this  will  meet  with  the  complete  approval  of  all 
the  memibers. 

The  motion  for  the  adoption  of  the  report  was  seconded  by 
Mr.  R.  L.  Bladcburn,  K.C.,  and  votes  of  thanks  to  the  directors 
and  to  the  chairman  having  been  proposed  by  Mr.  A.  Gray 
Muir,  W.S.,  and  Sir  George  M.  P«ul,  D.K.S.,  LL.D.,  the  meet- 
ins;  terminated. 


353 


XTbe  Jnveetors'  IRevtew. 


April  6,  1918. 


INDI4N  RAILWAYS. 

■    V    f 

oitoss  TRArnc  roii  wik. 

oiou  Tiume  TO  date. 

Namb. 

WMk 

endtaic 

Amount 

In.  or  deo. 

on  lut 

Tear. 

AmoDDl 

In.  or  dec. 
oolul 
yMT. 

AinmBeoK*! 

BarsI 

Bonnal&N.-W.     .. 

Bengal  Nagpdr      .. 

Bombay,  Baroda  . , 

B  rma 

Delhi  Umballa       .. 

East  Indian.. 

Gt.  Indian  Penln.  ,. 

Lnoknow-Bareill;.. 

Madras      and       S. 

Mahratia  .. 
Nliam'sGd.(Broadi 
,,        „     (Metre) 
Rohllkund  and 

Kumaon  .. 
Somh  Indian 

Jan.   26 
Feb.     2 
Jan.    26 
Fcb.     2 
Mar.  23 
Jan.    26 
Mar.  23 
„     30 

[an.    26 

Fcb.     a 
,,       2 

Ian.     26 
Feb.     2 

ki. 

166,613 
28,700 

5,01,000 
10,48,000 
16,56,000 

5,56.081 

1,04,000 

21.15,000 

23.33.700 

54.359 

10,50.000 
1,96,742 
1,23,720 

36.701 
6,44.344 

fta. 

+     50.152 

—  29,600 

—  7'. "30 

4-          1,000 

—  1.30,00c 
4-  44.846 
4-      18,624 

—  2,46,000 
4-  1,78,900 

—  7.2'6 

4-  651 
4-  40.860 
*     ",775 

—  2,290 
4-      61,586 

t 

t 
} 

I 

i 
t 

! 

t 

t 

t 

: 
t 

fts.             Rt. 

23,06,302  4-     1.57.061 
7.03,500—    2,10,800 

63.93.753-    6,60,312 
4.53.96.932  4-  36.02.366 
3.67,82.000—    6,24.000 
1.74.17.738-       I7.03> 

22,22,486  4-    2,99,499 

6.02,19,000  +  11,45,000 

5,60,16,954  +  35.98.349 

8,20,169  f       83,175 

',79.97.643  4-    9,78.769 
23.41.723  4-        42.280 
I5,5',324  +        38,895 

700,330  +       57,477 
1,15,87,804  4-    8,53,402 

t  April  I. 


t  October  I. 


TRAMWAY  AND  OMNIBUS.— HOME. 


DnUIn  United 
Hastings  and  Dlst.. 
Hie  ml  Thanet 
Lancashire  United.. 
Provincial    ,. 
Yorks.  (Wst.  RdnR.) 


£ 

£ 

£ 

Mar.   I 

7,305 

+     1.364 

} 

61.814 

,.     18 

1,093 

4-        124 

10.521 

„    16 

194 

—         55 

4. no 

..    27 

2,682 

4-       802 

t 

SI. 147 

„    I5 

2,(04 

+       593 

* 

56,858 

.,    31 

2.343 

4-       577 

t 

30,436 

ii,o8S 
840 
1,843 
9.539 
9.730 
7.167 


♦  From  Oct. 

1. 

t  From  J 

in.  I. 

TRAMWAY  AND  OMNIBUS.-FORbIGN   AND  COLONIAL. 

£ 

£ 

Ms. 

£ 

£ 

Alabama  Power    .. 

Feb.! 

127.420 

4-        26.091 

12 

345.887 

4-      327,163 

Anglo-Argentine    .. 
Auckland  Electric. . 

Apr,    I 

53.346 

* 

704,907 

+        44,354 

Oct.  26 

22,308 

+             880 

a 

92,118 

4-           7,832 

Brazilian  Traction  . 

Jan,  i 

M  3, 696,000 

—  M3o6,ooo 

I 

M3, 696.000 

—  M3o6,ooo 

Brisbane  Elec.  Inv. 

Feb. 

32,009 

4-         2.269 

2 

66,509 

4-         3,689 

British  Columbia  .. 

Dec,  § 

»i67.333 

4-      •30,967 

i 

•599.797 

4-     160,091 

B,A.  Laoroze 

Feb, 

34.397 

—          1,580 

303.775 

-          1,239 

Burmab  Eleotric  .. 

..      b 

Rs.22,985 

+   Rs.     73 

— 

157.522 

4-   Rs.    217 

Calcutta 

Mar.  30 

Rs,64.889 

4-    RS.1,372 

♦ 

Rs858,835 

4-  Rs,43,67i 

Cartbagena  and 

Herrerias , . 

Feb.     b 

4,031 

4-             808 

+ 

8.042 

4-             837 

Cordoba  Light 

P.  &T 

Jan. 

12.845 

4-             4'3 

10 

134.966 

«4I 

Hongkong   .. 
La  Plata       .. 

Feb,  16 

» 18,149 

4-       ^5.635 

* 

•94.318 

—           ^102 

Mar,     li 

5.347 

+             819 

1 

'4,803 

4-          1,867 

Lima 

Feb. 

41.913 

4-           7.685 

2 

85.449 

4-        14.380 

Madras  Eleetrio   .. 

Mar.  31C 

Rs,  48.284 

4- Rs, 12,949 

♦ 

Rs. 237.008 

fRs,33,569 

Manila  Electric 

Aug,  8 

65,467 

4-          4,667 

8 

547.492 

4-       70.625 

Mexico 

Nov,   1 

$215,256 

-•108,669 

* 

•3,193,106 

-  •  197.227 

Rangoon 

Feb.    1 

5.662 

4-          1,057 

. 

11,023 

+          '.7S5 

Singapore  Eleotric 

Dec.  29 

•  13.201 

+       •','73 

« 

•668,805 

4-     •iii90i 

Toronto 

Nov,    1 

•42'*.556 

-      •8.753 

11 

•  5,032,176 

4-   •239,'33 

United  of  Monte  V. 

Feb. 

34.573 

4-          2.269 

4 

135,674 

4-        10,261 

Veracruz   .. 

Dec,    § 

51.000 

— 

13 

618,000 

— 

Winnipeg    .. 

Nov. 

•86,888 

-     »I4.744 

11 

•748,976 

-  •327,782 

taS  days.       •  From  Jan.  i 

!  Nett. 

a 

From  July  i.      c  Two  weeks. 

FOREIGN  RAILWAYS. 

AlooyandGandla.. 
Antofagasta    (Chili) 

Mar. 

10 

„     £ 

Ps.    11,000 

+ 

£ 
500 

Ps.120,900  -Ps. 13,670 

Fei). 

3' 

40,450 

+ 

2,050 

^ 

516,405    4- 

37.105 

Arauco 

12,500 

+ 

2.500 

26,500    4- 

4.500 

Argentine  N.B.     .. 

Mar. 

30 

8,200 



900 

334,700   4- 

64.098 

Bilbao  R.  and  Canta 

Feb. 

2,953 

+ 

655 

8,062    - 

433 

Bolivar 

,, 

+ 

9,500 

— 

639 

89,236    4- 

19.230 

Brazil 

Dec. 

♦ 

M5,022,000 

1-M  667,425 

M  50375000   4-M59C6395 

Brazil  Gt.  Southern 

Nov. 

♦ 

Ml3.44,050 

4- 

M850 

M471.527    4- 

M5'.o57 

B.  Ayres  &  Pacific 

Mar. 

30 

160,000 

4- 

So,ooo 

3,425,000   4- 

51,000 

Do.  Central     .. 

Ian. 

29,421 

4- 

8.949 

175.607!  4- 

4.155 

Do.  Gt.South'n 

Mar, 

11 

137.000 

4- 

12,000 

4,265,705 

— 

168.549 

Do.       Western 

,, 

11 

58,000 

4- 

18,000 

1,878,000 

— 

86.COO 

Central  Argentine.. 

,, 

10 

i6g,ooo 

4- 

78,000 

4,086,200 

— 

48,200 

C.Ur'g'ayofMteV. 
Do.   East'n  Ex. 

,, 

10 

19.476 

4- 

4,636 

709,949 

4- 

199.825 

,, 

10 

5.424 

— 

1.553 

193,677 

4- 

6553 

Do.Nortb'nEx. 

„ 

10 

3.5'9 

4- 

251 

124,226 

4- 

31.391 

Do.West'n  Ex, 

10 

2.351 

4- 

521 

66,496  ;4- 

'3.732 

Cordoba  Central  .. 

,, 

10 

37.500 

4 

7.030 

I 

1,150,350 

4- 

6.7CO 

Costa  Rica  . 

|an. 

19 

3.996 

— 

2.749 

t 

81,054 

— 

66.253 

Cuban  Central 

Mar. 

10 

34.448 

4- 

3.083 

740,746 

4- 

141,804 

Dorada  Extension. . 

Feb. 

7.400 

— 

1,400 

2 

15,700 

— 

2,300 

Egyptian  Delta     .. 

10 

8,720 

4- 

1,433 

5 

149,329 

4- 

58,753 

Entre  Rios  . . 

Mar. 

10 

19,400 

1- 

6,9:0 

f 

586,700 

4- 

120,500 

French  Sante  Fd  . . 

Ian. 

147,488 

+ 

55.713 

I 

147.488 

4- 

55.713 

Gt.  South,  of  Spain 

Mar. 

16 

P«.   29,187 

-PS51.759 

♦ 

.Ps.334.463 

-Ps,726923 

Gt.  West,  of  Brazil.. 

,, 

10 

15,400 

4- 

3.300 

t 

246,600 

4- 

71,050 

Havana  Central    .. 

., 

16 

10,821 

4- 

2,946 

t 

314.210 

4- 

61,364 

Inter,  of  C.  Amer... 

Feb. 

C 

24,247 

— 

9,386 

+ 

47.67' 

— . 

•7.585 

La  Guaira  and  Car, 

,, 

5,500 

— 

3,500 
8,052 

1 

'3,750 

— 

4.250 

Leopoldina., 
Midland  Uruguay.. 

Mar. 

10 

29,963 

4- 

1 

4I7,'7C 

4- 

112,700 

Feb. 

10,000 

— 

1,280 

s 

104,920 

4- 

4.110 

Mogyana 

N.W.  of  Uruguay.. 

Dec. 

M2,3 12,000 

4- M  534.708 

t 

M  24041, »» 

+ 

M812.420 

Feb. 

•  23,000 

4- 

•  1,202 

8 

•212,065 

4- 

•  19.748 

Nitrate 

Mar. 

11 

31,062 

— 

5,020 

i 

'73,726 

4- 

'3.'54 

Paraguay  Central  , . 

21 

3,280 

4- 

600 

t 

10  .,590 

4- 

14,460 

Pauiista 

Dec. 

. 

M3,46i,ooo 

4- M  752,6,7 

12 

M34ti5,ooo 

+  M2188775 

Peruvian  Corpn    . . 

Feb. 

* 

S925.410 

4- 

880,640 

8 

S8,203,030 

4- 

S917.638 

Salvador       .. 

„ 

21 

•  3."2 

— 

•  1,055 

I 

•57,556 

•6,350 

State  of  Bahia  S.W. 

, 

M76.000 

^ 

Vl25,OO0 

2 

M  190,000 

— 

M33,ooo 

.S.  Paulo  (Brazilian) 

Mar, 

11 

21.744 

4- 

257  1  t 

43', 44'    4- 

144.129 

Sorocabana.. 

Dec. 

• 

Ml. 996.000 

4- 

M44,052'l2 

M20977o„o  i  4-  M 1888207 

Taltal 

teb. 

» 

22,29s 

4- 

5,348 

I 

20«.l86 

4- 

56,904 

United  of  Havana.. 

Mar. 

10 

88,002 

4- 

21,423 

t 

2. 1 '5,774 

4- 

523,622 

West'n  of  Havana. . 

, 

10 

12,35a 

4- 

3.450 

1 

332.452 

4- 

91,685 

Zafraand  Huelva.. 

tub. 

".570 

4- 

1,610 

t 

22.493 

4- 

«,392 

*  Months.  \  From  Jan.  i     I  From  Ju.'y  i.    c  Nett.    b  >5  days,    a  lo  days. 

COLONIAL  RAILWAYS. 


t7^'^ 

£ 

{ 

£ 

tteln 

Nov.  •<: 

-        I.4'6 

124,329 

4- 

8,374 

Canadian  Northern 

Mat.  11 

4  •6g,ioo 

129,450,700 

4-   •501,600 

Canadian  Paoifio   . . 

„    3' 

•4,306,000 

4- •374.000 

•32,629,000 

4-» 

540,000 

Gr.Trk.  Main  Line 

.,    3' 

305.171 

4-        4,"5 
4-        2,158 

2,II5,9'5 
39t,6'4 

— 

'09,'75 

Gr.  Trk.  Western.. 

„    3< 

.  48.744' 

— 

'3,9'5 

Detroit  G.  H.&M. 

„    31 

15.265 

—        5,840 

136,872 

— 

10,187 

GrTkPac  Prairie  Sc 

„    21 

t     27.025 

4-        9,602 

%^ 

4- 

73,'69 

MaihonalanJ 

Nov.  • 

56.698 

-        ',486 

— 

1,486 

Mid.  of  Weatn.  Au> 

Jan     •  1          9,296 

4-            790 

52,517 

4- 

4.005 

New  Cape  Central.. 

Feb.  16  1          2,563 

+            556 

'6,354 

4- 

2,695 

RtaodMla 

Dec.  'c  1        25,220 

—        «,47» 

3 

269,405 

4- 

11,925 

*  Moblh 

1.         > 

Jury  1. 

«  Jan. I. 

c  F 

rom  Oct.  >. 

MONTHLY    STATEMENTS. 


nAuu 

H»TT  EAUHIHOS  F0»   IIOHTH. 

NETT  BAamliaS  to  DATE. 

Month. 

Amoant. 

In.  or  Dee. 
on  last  year 

Amount. 

In.  or  Dee. 
on  last  year 

Dols. 

Dols. 

Dole. 

Dola. 

Atohlton  T.  a  S.  Ft 

Dec. 

3.543.0CO 

4-    240.000 

12 

47,829,000 

—  1,248,000 

Atlantic  Coast  Line 

,, 

2,036,000 

4-    420,000 

12 

12,014,000 

Baltimore  &  Ohio  .. 

1,851,000 

—  1,165.000 

12 

30,588.000 

-  3.425.000 

Canadian  Northern 

Feb, 

6,480,400 

—    588,6x) 

8 

2.279.700 

Canadian  Pacific  .. 

,, 

59'. 000 

-'.395.000 

2 

1.759.000 

—  2,659,000 

Chesapeake  &  Ohio 

Dec. 

1,238,000 

4-      44.000 

12 

14,099.000 

Chicago  4  N.W.    .. 

2,711,000 

4-      10,000 

12 

27,015.000 

—  3.634,000 

Chicago  Burl.  &  Q. 

Nov, 

1,642,000 

—2,031,000 

II 

31,281.000 

-  3.956.000 

Chicago  G.W. 

Dec. 

388,000 

—     11,000 

12 

3,876,000 

Chicago  Mil.  &  S.P. 

892.000 

-1,726,000 

12 

22,026,00c 

Chicago,  Rock  I. &P. 

1,362,000 

—   419,000 

It 

17,623,000 

—  2,953.000 

Colorado  IiSouthern 

Nov, 

444,000 

-   233000 

11 

5,320,000 

4.     370,000 

Cuba 

Jan. 

454, '7' 

h    245.735 

7 

»'5L''*^ 

4-      398.930 

Delaware  &  Hud.  .. 

Dec. 

4.000 

—   509,000 

11 

5.686,000 

Denver  &  Rio  Gran. 

296,000 

—  424.000 

12 

7,418,000 

—  1. 9^3 .000 

Brie 

507.000 

+ 1,848,000 
-£3'0.'50 

—  £37.500 

-  £2.850 

12 

10,538,000 

—  5.277.000 

Gr.Tr.  Main  Line.. 

Jan. 

f  6. '63,000 

12 

— 

Grand  Trunk  Westn 

*  f39.'5o 

12 

— 

DeiroitG.II.&Mil.. 

615.000 

12 

— 

-■ 

Gt.  Northern 

Dec. 

1,165,000 

—1,401,000 

12 

22,987,000 
17.538.000 

—  6,179,000 

Illinois  Central      .. 

Nov, 

1 ,466,000 

—   409.000 

11 

4-  2,590,000 

Kansas  City  Southn. 
Lehigh  Valley       .. 

Dec 

294,000 

—     86,000 

12 

4.495.000 

4-      569.000 

Nov. 

628,000 

—   376,000 

11 

9,240,000 

—  2,410,000 

—  836,000 

Louisville  &Nashvl, 

1,296,000 

—    178,000 

11 

16,949.000 

Minn.  S.P.  (Soo)|.. 

Dec, 

357.000 

—    297,000 

12 

9,331,000 

-  3,648.000 

Miss.  K.  &  Texas  . 

912,000 

4-     126,000 

12 

8,305,000 

4-  2,573.000 

Missouri  Pacific   .. 

Nov, 

1,690,000 

4-    321,000 

5 

9425.000 

New  York  Cem.aiH, 

2,939,000 

—1,742,000 

11 

45,049.000 

—  '3335.000 

-  1, 665 .00* 

N.Y.  N.  Haven  &H. 

,, 

1,469,000 

-    6o3,coO 

11 

19.597.000 

NewYorkOnt.&W, 

Dec, 

111,000 

—      26000 

12 

2,228,000 

-  97.000 

—  3,808,000 

Norfolk  &  Western, 

1,28  .-,000 

—    200,000 

'2 

19,654.00c 

Northern  Pacific  . . 

1,414,00a 

-1,832,000 

12 

27,423,000 

Pennsylvania    East 
and  West  Lines. . 

Jan. 

5,940,000 

-1 1072000 

1 

5.9*0,000 

14,877,000 

—  11072,000 
_  6,626,000 

4-      212,860 

Phil,  and  Reading  . . 

Nov. 

I,o64,8CO 

—1,199,202 

11 

" 

577.033 
1,304,000 

f         5.826 
4-     353.000 

II 

5 

8,569,000 
8,628,000 

St.  Louis  &  San  F.. 

4-  1,093.000 
—  24.000 
4.  2,098,000 

Seaboard  Air  Line.. 

Dec, 

673,000 

-     206,000 

12 

Southern     . .        . . 

2.953.000 

4-     241.000 

6 

'4.753000 

Southern  Pacific   . . 

Nov, 

4,465,000 

—  1,038,000 

11 

55.577,000 

4-  7,«55,o»» 

—  2, 1 13,000 

-  844,oeo 

Union  Pacific 

Dec. 

3,247,000 

4-      197,000 

12 

Wabash       .. 

316,000 

—  1,026,000 

12 

12,003,000 

I  Includes  Wise 

onsin  Ce 

ntral.    ♦  Gross  earnings. 

\  Surplus, 

k  Deficit. 

A  GREAT  NATIONAL 

DISTRiBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 
JSS.TOO.OOO 

or  over  £31,000  for  each  Working  Day. 


THE  UNION  BANK 

OF  MANCHESTER, 

LTD., 

with  its  predecessors  in 
Liverpool,  the  Private 
Banking  House  of 

Messrs.  E.  W.  YATES  &  CO. 

(Pioneers     of    Foreign 

Banking  in  the  North),    j^^^^  ^^^^ .  York  si.,  Nhmche.ier. 

has  carried  on 

EVERY  DESCRIPTION  OF 

FOREIGN  EXCHANGE  BANKING 

continuously   for  over   HALF  -  A  -  CENTURY. 

Branches  throughout  Lancashire,  Cheshire, 
and  the  West  Riding  of  Yorlcshire. 

AGENTS  EVERYWHERE  AT  HOME  AND  ABROAD. 


Prisltd  by  tb*  Si.  CL£MINTS  Prcss,  Ltd.,  Portuga'  Street,  KinKsway,  London,  W,C.,  for  the  Proprietor  of 

hv  Tuv    PBOPHiarnR.    \nHn1V    Haiic*     Vn.tnll.    «;,.«,•>     <;irft,.H     VJ  C    i  — Anril  fi.    t< 


Tut  Investors'  Keview 
018. 


and  Published 
IK  2330 


-Qbe 


Jnve^tote'  IReview 


FOUNDED    BY    A.     O.     WILSON,     FEBRUARY,     1892. 


VoI.XLI.— No.  1,058.] 

HEW  SERIES. 


rBctflitersd  »s  an 
L    Newipaper.    J 


SATURDAY,  APRIL  13,  1918. 


[Price  6d. 


CONTENTS. 


I 


Passing  Events : — National  War  Bond  Sales  —  Revenue  — 
Trade  After  the  War  —  Stock  Exchange  Report  —  Hong 
Kong  and  Shanghai  Bank  —  Canadian  Pacific  Railway  — • 
British  Bank  of  South  America  —  W.  T.  Henley's 
Telegraph  Works  —  Mr  E.  L.  Pyke  on  Conditions  in 
Germany  —  Mappin  and  Webb  —  Val  de  Travers  Asphalte 
—  Institution  of  Mining  and  Metallurgy  R  port  (pp.  355-8). 

Leading  Articles : — Ministers  in  a  Panic  and  an  Irish  Revolt  — 
Capital  and  Labour,  and  the  Landed  Interests  —  1  ondon 
Electric  Supply  Companies  —  By-the-Way  War  Notes  (pp. 
358-63). 

Money  and  Credit  Notes : — Easy  Money  and  Discount  Rates  — 
Bank  Return  —  Sir  E.  Holden's  Defence  of  Bank 
Amalgamations  —  British  Italian  Corporation  Meeting  — 
Chartered  Bank  of  India  Personnel  —  Budget  Forecasts  — 
Increased  Price  of  India  Council  Drafts  —  Foreign 
Exchange  Movements  —  Landed  Banking  and  Loan  Co. 
Issue  —  Silver  (pp.  364-6). 

Insurance  News  : — Friends'  Provident  and  the  Century  — 
New  Zealand  Co.  —  State  Assurance  Co.  —  March  Fire 
Losses  in  the  United  Kingdom  —  Law  Fire  —  Law  Union 
and  Rock  —  Metropolitan  Life  (p.  368) . 

The  Week's  Stock  Markets  (pp.  366-7). 

London  Produce  Markets  (pp.  367-8). 

The  Week  in  Mines  (p    369). 


American  Business  Notes : — Finance  Trust  Companies'  Result^ 
and  their  Improved  Position  (p.  369). 

Mining  News : — Broken  Hill  Proprietary  —  Irtysh  Corporation 
— ■  Main  Colliery  —  Shamva  Mines  (p.  369). 

Tea,  Oil,  and  Rubber; — Output  Restriction  —  Rangoon  Para 
Rubber  Estates  —  Trolak  Plantations  —  Soember  Ajoe 
Rubber  Estates  —  Carey  United  Rubber  Estates  —  Ampat 
(Sumatra)  Rubber    Estate  —   Tamiang   Rubber   Estates  (p. 

370). 

Company  Meetings : — Lamport  and  Holt  —  National  Bank  o£ 
India  —  Chartered  Bank  of  India,  Australia,  and  China 
—  Metropolitan  Life  Assurance  Society  —  Rio  Tinto  (pp. 
371-4). 

What  Balance  Sheets  Tell : — Mercantile  Bank  of  India  — 
Western  Union  Telegraph  Co.  —  London  Nitrate  Co.  — 
American  Investment  Trust  Co.  —  Foreign,  American,  and 
General  Investments  Trust  Co.  —  British  and  Foreign 
Trust  —  Electro  Bleach  and  By-Products  (p.  374). 

Company  Results  in  Brief  (p.  369). 

Dividends  Announced  (p.  370). 

Oilfields  Production  (p.  374). 

Traffic  Returns  (p.   375). 

Answers  to  Correspondents  (p.  375). 

Lancashire  Cotton  Spinning  Profits  (p.  375). 


THE 


NATIONAL   PROVINCIAL 


AND 


UNION  BANK  OF  ENGLAND. 


LIMITED. 


Authorised  Capital 
Paid. Up  Capital    -        .        . 
Uncalled  and  Reserve  Liability 
Reserve  Fund       ... 


DIRECTORS. 


£ 
36,000,000 

5,476,884 
23,807,536 

4,000,000 


C.  F.  CAMPBELL,  Esq. 

C.  C.  CAVE.  Esq. 

J.  A.  CLUTTON-BROCK,  Esq. 

H.  G.  DEVAS,  Esq. 

Brigadier  -  General    H.    H.   J.   W. 

DRUMMOND.  C.M.G. 
M.  0.  FITZGERALD.  Esq. 
C.  R.  GILLIAT,  Esq. 
W.  H.  N.  GOSCHEN.  Esq. 
Tiie  Rt.  Hon.  LORD   INCllCAPE. 

G.C.M.G..  K.aS.L,  K.C  LE. 


F.  A.  JOHNSTON,  Esq. 

Col.  Sir  C.  V.  E.  LAURIE.  B.irt., 

C.B.,  D.S.O. 
F   C.  LE  MARCHANT,  Esq. 
Ihc    Rt.    Hon.    The    EARL    OF 

LICHFIELD. 
S.  R.  PRVOR.  Esq. 
Sir  FELIX  SCHUSTER.  Bart. 
E.  A.  SMITH,  Esq. 
L.  E.  SMITH.  Esq. 
C.  H.  R.  WOLLASTON,  Esq. 


Joint   General    Managers. 

D.  J.  H.  CUNMCK.  F.  ELEY.  A.  G.  HOPEWELL, 

H.  H.  HART  *  L.  E.  THOMAS.  Esquires. 

HEAD  OFFICE :    18,  BISHOPSGATE,  LONDON,  E.G.  2. 
Princes  Street  Office  (Union)  -  2,  Princes  Street,  B.C.  2. 
Lombard  Street  Office  (Smiths),  I.Lombard  Street,  E.C.3. 
Cornhill  Office  (Prescott's)     .    -    -  50    Cornhill,  B.C.  3. 

FRENCH    AUXILIARY: 

Lloyds  Bank  (France)  and  National  Provincial  Bank  (France),  Ltd. 

London  (60,  Loml-ard  Street.  EC. 3).   Paris.  Biarritz, 
Bordeaux.  Havre.  Marseilles,  and  Nice. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the   Imperial 
Japanese  Government,  7899. 

-      TAIPEH,    FORMOSA. 


HEAD  OFFICE 


BRANCHES-Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swalow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58.  OLD  BROAD  ST.,  E.C.  2. 


THE  TRUSTEES  CORPORATION 

(LIMITED). 


CAPITAL 


£1,050,000. 


The  first  Corporation  founded  in  the  United 
Kingdom  to  act  as  Executor  and  Trustee  of  Wilts 
and  Settlements. 

Trufltces  fur  Debenture  Isiues. 

Agents  (or  Foreign,  Colonial  and  Municipal  Loans. 

Bonds   granted    to    Receivers    and 

Administrators. 

Leasehold  and  Sinking  Fund  Policies  issued. 

Safe  Deposit  and  Halls  for  Meetings  et 
Winchester  House. 

Pamphlet  sent  on  application  to  the  Secretary  at  the  Head  Office. 

WINCHESTER    HOUSE,  OLD  BROAD  ST.,  LONDON,  E.G.  2. 

Liverpool  Branch  and  Safe  Deposit :  2,  Exchange  Street  East. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital  £4,000. 000 

Paid-up  Capital 1 ,800,000 

Reserve  Fund    2, 000.000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendoza,  Concordia,  Bahia 
Blanca,  Cordoba.  Tucuman,  Parank,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires),  Boca  (Buenos  Aires),  Calle  Sania  F€  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires)  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agencv),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro,  Sao  Paulo,  Santos,  Per- 
nambuco,  Para,  Bahia,  Victoria.  Curityba,  Manaos  (Agency),  CHILI — 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  Hal^vy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


The  union  BANK  of  AUSTRALIA 

Established  183?.  LIMITED.  Incorporated  1880. 

Authorised  and  Issued  Capital,  £6,000,000. 

Paid-up  Capital,  £2,000,000;  Reserve  Fund,  £2,000,000;  toeetbec   £4,000,000 

Reserve  Liability  of  Proprietors , 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OFFICE-        -        -        71 ,  CORNHILL,  LONDON.    E.C.  8. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  AastiaJian 
States  and  Dominiin  of  New  Zealand. 

TELEGRAPHIC  REMIITANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
on  application. 


354 


Zbc  Jtivestots'  IReview. 


AfRii,  13,  i^i8. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office  t  IS.  Gracechurch  Street,  London,  E.C.  3. 


Capital  Authoriied 
Capital  Issued 
Capital  Paid  Up  ... 
RcMfvc  Fund      ... 


£1^00,000 

1,125,000 

562,500 

600,000 


Branches i 

INDIA.   BURMAH.   CEYLON.    STRAITS    SETTLEMENTS 

CHINA.    AND    PORT    LOUIS.    MAURITIUS. 

The  Bank  buys  and  sells  Bills  of  Exchange,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  East,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  ouprent  aooounts  interest  is  allowed  at  2  per  cent,  per  annum  on 

daily  balances. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1880. 

SabBorlbed  Oapital        Ten  48,000,000 

Capital  Paid  Up Yen  42,000,000 

Reaarre  Fund         ..        ..  ..    Yen  22,100,000 

Head  Office :   YOKOHAMA. 
Branches  and  Agencies  at  Shanghai. 

Bombay.  Honolulu.  Newchang.  Shimonoseki. 

Calcutta.  Hong  Kong.  New  York.  Singapoie. 

Changchun.  Kobe.  Osaka.  Sydney. 

Dairen  (Dalny).  Los  Angeles.  Peking.  Tientsin. 

Fengtien  (Mukdan).      Lyons.  Rangoon.  Tokyo. 

Hankow.  Manila  San  Francisco.  Tsinanfu. 

Harbin.  Nagasaki.  Seattle.  Tsingtau. 

The  Bank  buys  and  racaives  lor  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
tad  transacts  General  BankiMg  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  application. 
London  Office:  7,  BISHOPSGATE.  E.C. a. 

K.  TATSUMI,  Manager. 


CRVtJPLTHL. 


THE   BANK   OF 
BRITISH   NORTH    AMERICA. 


Established  1836. 


INCORPORATED  by  ROYAL  CHARTER  1840. 


PAID-UP  CAPITAL    ..  f  1,000,000.  RESERVE  FUND    . .  £6m,ooo. 

Head  Office:— 5,  GRACECHURCH  STREET,  LONDON,  E.C.  3. 
Court  of  Directors. 
LI.-Col.F.  R.S.BALFOUR.  Lieut.  E.  GEOFFREY  Hon.  A.  R.  MILLS,  M.P. 
J.  H.  BRODIE.  HOARE.R.N.V.R.     MajorC.  W.  TOMKINSON 

J.  H.MAYNE  CAMPBELL.    F.LUBBOCK.  G.D.WHATMAN. 

E.  A.  HOARE, 

Daposits  received  at  rates  which  may  be  obtained  on  application. 

Bills    of    Exchange    negotiated. 
Dividends    and    Coupons    coileuted. 
Purchase    of    Stocks    and    Shares. 


ALL     KINDS     OF      BANKING      BUSINESS    TRANSACTED. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

Head  Office — yr.  Old  Broad  Street,  E.C. 

Snbseribed  Capital         CI, 276. 747     ^0    O 

Paid  up  Capital 669,685      0     O 

Reserve  Fund  and  Undivided  Profits         ..  375,680   11     8 

Reserve  Liability  of  Proprietors       ..         ..  606|962    ID    0 

REMITTANCES  made  by  CABLE. 
DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 

Branches  and  Agents. 
BILLS  on  Ausiralasia  NEGOTIATED  or  sent  for  collection. 
DEPOSITS  RECEIVED  for  periods  and  at  rates  which  may  be  ascertalDad 

on  application,  and   Banking   Business    of    everv  descrtpticn    condusied 

with  AasKalia. 


UNION      BANK     OF     CANADA. 

IMCORPORATED  1865.  Head  OmcE  :  WINNIPEG. 

PAID.UP  CAPITAL $S,ooo,ooo 

RE5T   AND    UNDIVIDED    PROFITS t1  600  oco 

TOTAL   ASSETS    EXCBBD         »i43;ooo!ooo 

The  Bank  has  over  300  Branches  in  Oanada.  and  Agents  in  the  principal 
cities  in  America.       General  Banking  Business  Conducted. 

Daposits  Received  for  fired  periods  at  favourable  rates,   which  may  be 
ascertained  on  application  to 

Usdoa  OftlMi :  I.  PRINCES  STREET.  E.O.  I,  wul  II.  HAVMMKET,  S.W- 
K«w  York  ASeiMy :  4S.  Wall  Street. 


INSURANCE. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 
£9,700,000 

or  over  £31,000  for  each  Working  Day. 

ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

HEAD  Office:  BARTHOLOMEW  LANE,  LONDON,  E.C.  2. 


ASSETS    EXCEED    £24,000,000. 


Chairman  t 

The    Hon.    N.    CHARLES    ROTHSCHILD. 


The  Operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  information  respecting 

ESTATE    DUTY   and 

CHILDREN'S  EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  application 
to  the  Head  Office  as  above, 
OP  to  any  of  the  Offices  op 
Agencies    of    the    Company. 

O.  MORGAN  OWEN,  General  Manager, 

BONDS   CANCELLED. 

IMPERIAL  JAPANESE  GOVERNMENT 

4^  PER  CENT.  STERLING  LOANS  OF  1905. 

The  Yokohama  Specie  Bank,  Limited,  London,  announces  that 

f  150, 000  4J  per  cent.  Sterhng  Bonds  of  the  1st  Series,  and 
150,000  4J  per  cent.  Sterling  Bonds  of  the  2nd  Series,  have 
been  purchased  on  behalf  of  the  Imperial  Japanese  Government 
for  the  purpose  of  cancellation,  and  the  said  Bonds  are  now 
cancelled. 

The  quantities  and  denominations  of  the  Bonds  so  cancelled  are 
the  following ; — 

First  Series —                         Second  Series — 
2    of    /500                           423   of    ;f200 
392    of     /200                            487   of    /lOO 
706    of    ^100                          835   of      /20 
London,   10th  April,  1918. 

^be  3nv>egtor0^  IRcvtew. 

SCALE  OF  CHARGES  FOR  ADVERTISEMENTS. 

PROSPECTUSES. 

Full  Page «25      O    O 

Under  one  page,   at  per  inch,  ISO 

single  column 

Special  positions  by  arrangement. 

REPORTS    OF    COMPANY    MEETINGS. 

Minimum     ...  ...  ...        *4      O     O 

Per  Column...  ...  ...  6    11      6 

COMPANIES'    BALANCE-SHEETS. 
Whole  Page  ...  ...    «15    15     O 

Half  Page 8      2     6 

Quarter  Page  ...  ...  4       2     6 

DIVIDEND    NOTICES,    &C. 
Per  Inch      ...  ...  ...       *0    12     6 


INSURANCE 


COMPANIES. 
O  18    9 


BANKS    AND 

Special  position 

Front    Page    (cover)    or   facing 

Money  Article,  per  inch      ...        JBO  ISO 
Ordinary  position,  per  inch      ...  O  12    6 

Discount  for  Series. — 5%  for  Thirteen,  10%  for  Twenty-six. 

15%  for  Thirty-nine,  and  20%  for  Fifty-two. 

"INVESTORS"  REVIEW,"   Norfolk  House,  Nokfolk  Street,  Stkamd 
London,  W.C. 


TLbc  5nve6tore'  IRcptew, 


Vol.  XLI. 

New  Series. 


-No.  1,058. 


SATURDAY,  APRIL  13.   1918. 


rrxiur)  p«-'ce  6d. 


PUBLISHER'S    NOTICES 

UbC  investors'  IReVteW  is  a  subscription  journal,  and  win 
be  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning 
on  the  following  terms  : — 

One  Year,  £1  5s.  Od.    Six  Months,  12s.  6<l.    Three  Months,  6s.  6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year  £1  Ss.  Od.    Six  Months,  14s.  Od.    Three  Months,  7s.  Od 

Short  of  Three  months  the  Price  is  6id.  per  Copy  Inland,  and 

7d.  Abroad,  Post  Free. 

Cloth  cases  for  binding  the  half  Yearly  Volumes  price  2s.  6d., 

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London,  W.C. 

Telephone  No. :  Telegraphic    Address  : 

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The  Editor  cannot  undertake  to  return  rejected  com- 
munications. 

Letters  from  correspondents  must,  In  every  case  be 
authenticated  by  the  name  and  address  of  the  writer. 

The  Editor  desires  It  to  be  understood  that  a  charge  is 
made  for  the  Insertion  of  reports  under  the  heading  of 
Company  Meetings,  and  he  cannot  accept  responsibility 
for  statements  made  therein. 


ANSWERS  TO  QUERIES. 

One    Reply    to    One    Question  —  One    Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
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the  printed  replies.  Questions  to  be  answered  in  the  current  issue 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  in  advance,  a 
Key  to  the  previous  week's  replies  will  be  sent  early  in  the 
following  week. 

Deposits  of  "  Query  Money  "  may  be  made  in  advance,  and  will 
be  acknowledged  in  the  "Answers"  column.  Notice  of 
exhaustion  will  also  be  given  there. 

Telegrams  advising  about  new  securities  cost  Half-a> 
Grown  each,  plus  cost  of  the  telegram. 

Private  letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
Shillings,  but  for  this  three  questions  will  be  answered  if 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Half-a-Grown  per  question. 

Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  on  terms  varying  according  to  the  time 
taken. 

Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


Passing   Events. 


Not  .so  many  National  War  Bonds  of  the  Bank  of 
England  issue  were  sold  in  the  week  ended  on  Saturday 
last,  the  first  of  the  new  fiscal  year.  The  applications 
numbered  12,538,  a  decrease  of  1,814,  and  the  amount 
applied  for  was  ;^5, 376,000  kss  at  ;^"io, 940,000,  but 
this  bring^s  up  the  total  amount  credited  to  these  bond 
sales  to  p{^622, 133,000.  Through  the  Post  Oflice  for 
the  week  ended  March  30  there  were  32,700  applica- 
tions, or  2,900  more  than  in  the  preceding  week,  and 
the  amount  applied  for  was  ^^130,000  more  at 
;£,9oo,ooo.  This  brings  up  the  total  applications  for 
the  Bost  Office  series  to  1,005,500,  and  the  amount 
applied  for  to  ^"'24, 943,000.  In  the  same  week,  these 
two  smaller  issues  being  always  behind  the  Bank  of 
England  figures,  the  total  number  of  War  Savings  Cer- 
tificates sold  was  1,714,515.  This  brought  up  the 
aggregate  to  date  to  175,936,136  certificates,  which,  at 
15s.  6d.,  represented  ;^i36,350,505  in  money.  .Adding 
the  products  of  these  various  forms  of  debt  together,  we 
get  an  aggregate  of  about  ;^783,ooo,ooo,  which  is  by 
no  means  unsatisfactory,  although  still  far  short  of 
what  is  required.  Of  this  total  ;^622,ooo,ooo  is  ascrib- 
able  to  the  Bank  of  England  issue  of  War  Bonds,  and 
no  doubt  we  shall  be  told  in  the  Budget  speech  how 
much  of  this  handsome  sum  is  new  money  and  how 
much  the  product  of  debt  conversions. 


;^i28, 827,000  of  supply  Treasury  bills  matured  and  had 
to  be  met.  They  and  the  excess  current  expenditure  of 
more  than  ;^^4 1,000,000  were  met  by  an  issue  of 
;^io5, 3 13,000  new  Treasury  bills,  by  fhe  receipt  of 
;£'iS, 478,000  from  National  War  Bonds,  by  ;^i,40o,ooo 
the  yield  from  War  Savings  Certificates  sold,  and  by 
;^!i^43,ooo,ooo  raised  on  temporary  advances.  Even 
that  was  not  enough.  It  left  about  ;£.i'4, 800,000  to  be 
drawn  off  the  Exchequer  balances,  which  were  there- 
fore brought  down  to  ^16,230,000.  In  this  way  the 
outstanding  total  of  Treasury  bills  has  been  reduced  by 
;^'24, 2 12,000  to  ;iC949,465,ooo,  but  to  what  extent  the 
floating  -debt  under  temporary  advances  has  been  in- 
creased we  do  not  know.  Perhaps  that  likewise  will 
be  explained  next  week,  when  Mr.  Bonar  Law  unfolds 
the  mysteries  of  his  Budget.  We  hope  his  expo.sition 
will  be  full,  frank,  and  devoid  of  all  subterfuge  or  make- 
believe,  because  it  is  quite  time  the  nation  began  to 
shed  its  illusions. 


As  usual,  the  first  week  in  a  new  financial  year  is 
never  distinguished  by  overflowing  receipts  at  the  Ex- 
chequer, and  the  week  ended  April  6  proves  no  excep- 
tion to  the  rule.  From  taxation  and  monopolies  the 
receipts  were  ;^i6,384,ooo,  of  which  ;^8,202,ooo  came 
from  property  and  income-tax,  including  super-tax, 
and  p^4. 378,000  from  excess  profits  tax  ;  that  is  to  say, 
^12,580,000  of  the  entire  income  of  the  v^'eek  came 
from  these  two  categories  of  direct  taxation.  Current 
expenditure  amounted  to  ^57,552,000,  or  at  the  rate 
of  nearly  ;^8.222,ooo  a  day.  Of'this  total  ;^t  1,972,000 
represented  interest  on  war  debt,  and  ;^2, 420,000  is 
set  down  to  miscellaneous,  leaving  only  ;^43, 160,000 
as  the  amount  absorbed  by  supply,  or  ^6,167,000  a 
day.  Beyond  this  statement  of  actual  income  and 
outgo,  which  shows  the  outgo  to  be  well  on  to  four 
times  the  revenue,  there  was  an  unusually  large  credit 
overturn,     thanks    to     the     fact     that     no     less    than 


It  is  a  relief  to  come  across  speeches  like  some  of 
those  made  at  the  annual  meeting  of  the  Association  of 
Chambers  of  Commerce  held  this  week.  Sir  Algernon 
Firth  presided,  and  delivered  an  address  which  ought 
to  help  much  to  check  the  passion  for  manufacturing 
what  he  called  "  wild-cat  "  schemes.  Perhaps  there 
was  a  little  too  much  disposition  shown  to  look  to  the 
Government  for  the  initial  impulse  and  subsequent 
guidance  of  our  industries  in  the  period  succeeding  the 
war,  but  tTiat,  though  dangerous,  is  quite  natural  in 
the  circumstances,  and  the  advice  was  good  which  Sir 
Algernon  gave  to  traders  that  they  should  take  steps  to 
combine,  "  either  with  or  without  the  knowledge  and 
consent  of  Government  departments,"  in  order  to 
secure  supplies  of  raw  material  in  good  time  so  as  to 
anticipate  the  Germans.  A  delegate  complained  that 
the  President  had  omitted  any  reference  to  our  future 
trade  relations  with  Germany,  but  the  complaint  was 
not  warranted,  because,  as  Sir  Algernon  said  in  his 
answer,  the  country  cannot  now  be  committed  as 
regards  its  policy  after  the  war.  A  discussion  at  pre- 
sent of  our  trade  relations  with  Germany  after  the  war 
can  only  be  fanciful  and  academic.  We  make  far  too 
much  of  a  bugbear  of  Germany,  not  only  on  the  battle- 
field, but  in  the  fields  of  trade  and  industry.  We 
assume,  for  example,  that  Germany  will  have  the  com- 
mand of  capital  and  be  able  to  resume  her  predatory 


356 


Zbc  Jnvestors'  IRevtew, 


April  13,  1918. 


inditstrial  competition  after  the  war  just  as  if  nothing 
had  happened.  As  a  matter  of  fact,  Germany  will  be 
almost  totally  destitute  after  the  war,  and  unable  to 
recommence  her  former  aggressive  attacks  in  any 
market,  even  the  nations  willing  to  be  exploited.  We 
also  shall  a'l  be  too  poor  after  the  war  to  be  able  at 
once,  or  for  many  years  to  come,  to  resume  our  former 
habits  in  business,  to  create  new  markets  for  our  pro- 
ductions while  increasing  the  old,  but  Germany  and 
Austria  will  be  infinitely  poorer  than  the  Allies,  and  will 
be  shut  out  from  the  (x;ean,  a  pariah  among  the  nations, 
whereas  we  shall  Ix;  among  friends.  A  totally  new 
foundation  will  therefore  have  to  be  laid  on  which  to 
rest  future  trade  of  the  world.  Each  country  will  be  in 
the  position  of  having  to  depend  upon  cash  or  actual 
commodities  for  its  power  to  buy  from  other  countries 
more  than  has  ever  before  been  the  case.  But  with 
goodwill  and  in  a  spirit  of  mutual  helpfulness  we  shall 
succeed.  It  is  well,  therefore,  to  take  a  sensible  view, 
an  unimaginative  view,  of  the  future,  a  view  also 
less  self-centred,  and  meanwhile  to  do  our  utmo.st  to 
conserve  our  producing  capacity  so  as  to  be  ready  to 
put  our  best,  our  least  credit-fed  energy  into  the  work 
of  reconstruction  when  the  time  comes,  as  we  are  pe.-- 
suaded  it  will  do  before  so  very  long. 


In  some  ways  the  Stock  Exchange  is  suffering  from 
the  war  more  than  any  other  institution  in  the  City.  It 
is  so  partly  because  its  trustees  and  managers  have 
shown  a  patriotic  liberality  in  their  treatment  of 
members.  For  example,  no  less  than  ;^58,628  of  their 
subscription  money  was  last  year  remitted  to  1,586 
members,  and  in  addition  another  ;;^i6,702  was  sacri- 
ficed, being  the  payments  due  on  account  of  1,020 
clerks.  In  all,  therefore,  fplly  ^77,000  of  the  usual 
revenue  was  sacrificed  bcause  these  members  and  clerks 
have  in  one  way  or  another,  but  principally  in  joining 
the  Army,  gone  to  serve  their  country.  The  conse- 
quence is  that  the  revenue  has  been  severely  curtailed. 
Total  receipts  for  the  year  ended  March  25  amounted 
to  only  ;6i30,304,  which  was  ;£'i8,468  less  than  the 
income  of  the  previous  year.  A  slightly  larger  decline 
was  effected  in  the  expenses,  which  were  brought  down 
by  ;^2o,497  to  ;^i  14,409,  but  even  so  the  nett  revenue 
remaining  was  only  ;^"'2,02g  larger  at  ;^i5,89.^.  It 
takes  ;^20,ooo  to  pay  ;£^i  per  share  on  the  paid-up 
capital  of  ;^"26o,ooo,  and  that  is  all  the  dividend  which 
the  trustees  and  managers  have  again  decided  to  pay. 
But  as  the  revenue  is  only  ^15,895,  it  follows  that  the 
balance  left  to  carry  forward  is  reduced  from  ;^2o6,5i9 
t0;^202,4i4.  It  is  fortunate  that  the  management  had 
accumulated  so  handsome  a  balance  in  past  years,  for 
it  may  be  many  a  day  before  the  Stock  Exchange  gets 
over  the  losses  caused  by  this  war.  Receipts  from 
entrance  fees  were  ;^4,o53  against  ;^3,9i6  the  previous 
year,  but  either  figure  is  in  pitiful  contrast  to  what  has 
been.  Poverty,  however,  does  not  tempt  the  managers 
to  ignore  any  of  their  obligations,  and  ^1,500  has  been 
written  off  -leasehold  redemption  account  as  well  as 
;6 1,450  off  licence  account.  The  number  of  members 
has  declined  164  to  3,884,  but  the  number  of  authorised 
clerks  is  only  six  smaller  at  696,  and  the  total  number 
of  clerks  has  been  reduced  by  no  more  than  72.  The 
number  of  proprietors  fell  off  32  last  year  to  2,289. 
Nothing  in  the  accounts  invites  comment  beyond  noting 
that  vigilance  appears  to  be  exercised  in  effecting 
economies  where  possible. 


Business  was  not  quite  so  flourishing  for  the  Hong- 
kong and  Shanghai  Banking  Corporation  last  year  as 
in  1916,  and  the  nett  profits  fell  $485,000  to 
$6,654,000.  We  note,  too,  that  there  was  a  contrac- 
tion of  $4,330,000  to  $24,920,000  in  the  note  circula- 
tion, no  doubt  owing  to  the  restriction  in  shipping 
facilities  causing  a  decline  in  trade.  But  any  falling 
off  in  this  direction  was  more  than  compensated  for  by 
the  rise  in  the  exchange.  The  interim  dividend  of 
£2  3s.  -was  remitted  at  the  rate  of  2S.  6}d.,  against 
2s.  ijd.,  and  the  final  dividend  of  the  same  amount 
comes  at  3s.,  against  2s.  4?d.  Consequently  the 
directors  are    able    to  double   the   bonus    at   20s.    per 


share  (also  remitted  at  3s.),  to  write  one  million, 
agiunst  $750,000,  off  bank  premises,  and  double  the 
appropriation  to  silver  reserve,  which  this  time  gets 
a  million.  A  year  ago  $600,000  had  to  be  set  aside 
for  depreciation  of  securities,  and  the  carry  forward 
is  increased  by  $60,000  to  $3,223,000.  The  sterling 
reserve  (taken  at  2s.)  remains  at  ;^i, 500,000,  and  the 
silver  reserve  is  now  $19,500,000,  whereas  the  ptiid-up 
capMtal  is  only  15  millions,  so  that  the  position  is  an 
enormously  strong  one.  Currenit  accounts  have  in- 
creased 20  millions  to  $223,167,000,  and  fixed  deposits 
are  $8,300,000  higher  at  $90,860,000.  Bills  payable 
are  $5,450,000  up  at  $17,383,000,  and  acceptances 
have  risen  $3,400,000  to  $6,085,000.  Cash  has  in- 
creased 24  millions  to  $84,  i32;ooo,  and  bills  receivable 
are  $2,400,000  up  at  $146,130,000,  but  there  is  a  re- 
duction of  14  millions,  at  $131,607,000,  in  discounts 
and  advances.  The  balance-sheet  now  totals  at 
$418,940,000  an  increase  of  16  millions,  and  the 
management  have  every  reason  to  be  proud  of  the 
commanding  position  which  the  bank  has  achieved  in 
the  East.  The  immediate  future  may  be  somewhat 
uncertain,  but  it  is  difficult  to  imagine  any  oircum- 
.stances  which  would  seriously  affect  the  prosperity 
of  the  bank. 


Owing  to  the  decision  to  make  the  fiscal  correspond 
with  the  calendar  year,  the  36th  annual  report  of  the 
Canadian  Pacific  Railway  Co.  on^y  covered  the  six 
months  ended  Dccemljer,  1916.  In  these  circumstances 
it  might  have  been  expected  that,  following  the  usual 
custom  adopted  in  such  cases,  the  principal  figures  for 
the  whole  of  1916  would  have  been  given  for  com- 
parison in  submitting  the  results  for  the  past  year. 
That,  however,  has  not  been  done  except  in  the  case 
of  certain  more  or  less  unimportant  working  details, 
and  the  report  for  191 7  is  therefore  robbed  of  a  good 
deal  of  its  interest.  All  we  are  tdld  is  that  "  the  gross 
earnings  of  the  transportation  system  in  the  fiscal 
year  1917  exceeded  those  of  the  previous  year  by 
$13,000,000,  but  the  nett  earnings  were  less  by 
$4,000,000.  This  large  addition  of  17  millions  to  the 
working  expenses  may  be  attributed  almost  entirely  to 
the  advance  in  wages,  and  in  the  cost  of  fuel  and 
materials  of  every  description."  So  we  must  leave  it 
there  for  the  present  in  the  hope  that  a  more  illu- 
minating statement  will  be  submitted  at  the  annual 
meeting  to  be  held  on  May  i.  Gross  earnings  for  the 
year  amounted  to  $152,389,000  and  working  expenses 
to  $105,843,000,  leaving  a  nett  revenue  of  $46,546,000. 
Fixed  charges,  absorbed  i$io,229,ooo,  and  $500,000 
was  handed  over  to  the  pension  fund.  After  trans- 
ferring nett  earnings  of  Pacific  Coast  steamships  and 
other  "  side  shows  "  to  special  income  account  there 
is  a  balance  of  $33,848,000.  Preference  dividend  at 
4  per  cent,  requiresi  $3,227,000,  and  the  ordinarv  divi- 
dend at  7  per  cent.  $18,200,000,  leaving  a  surplus  of 
$12,421,000.  In  addition  the  ordinary  stock,  as  usual, 
gets  an  extra  3  per  cent,  from  .special  income,  which 
amounted  to  $10,713,000,  and  after  paying  this  divi- 
dend there  is  a  surplus  of  $13,835,000,  as  against 
$10,922,000  brought  in.  Working  expenses  for  the 
year  amounted  to  69.46  per  cent,  of  the  gross  earnings, 
as  compared  with  63.88  per  cent,  in  1916.  The  number 
of  passengers  carried  was  15,577,000,  almost  exactly 
the  same  as  in  the  previous  year,  but  tons  of  freight 
rose  fully  a  million  to  31,200,000,  and  compared  with 
24,895,000  in  1915.  Earnings  per  ton-mile  were  0.70 
cents  against  0.65  cents,  and  per  passenger-mile 
2.03  cents  against  1.96  cents.  Sales  of  agricultural 
land  amounted  to  789,000  acres  for  $14,331,000,  Ix-ing 
an  average  of  $18.16  per  acre.  Included  in  this  area 
were  58,680  acres  of  irrigated  land,  which  fetched  $46 
per  acre,  so  that  the  average  price  of  the  balance  was 
$15.92,  a  much  higher  figure  than  would  have  seemed 
possible  a  few  years  ago.  We  are  decidedlv  interested 
to  learn  that,  before  the  adoption  in  1913  of  the  policy 
of  selling  lands  to  settlers  only,  considerable  areas  had 
been  bought  by  land  cx>mpanies  and  others  for  specula- 
five  purposes,  and  that  "  nearlv  all  of  these  purchasers 


J 


April  13,  1918, 


Ube  3nve8tor6'  IRevtew. 


357 


were  in  default  and  nothing-  was  being  done  with  the 
lands."  Consequently  the  directors  have  negotiated 
the  cancellation  of  the  contracts  and  the  restoration  of 
the  lands  to  the  company.  Some  of  these  have  already 
been  resold  to  settlers,  and  it  is  expected  that  pur- 
chasers will  be  found  for  the  balance  "  at  prices  some- 
what better  than  those  specified  in  the  cancelled  con- 
tracts." .And  we  suppose  that  is  about  all  we  shall  ever 
be  told  officially  with  regard  to  the  shocking  Canadian 
land  boom  scandals. 


Nothing  very  exciting  has  occurred  in  the  affairs  of 
the  British  Bank  of  South  .America,  Ltd.,  during  the 
past  year.  Gross  profits  amounted  to  ;^,'352,40O,  an 
increase  of  ;^28,ooo,  but  expenses  were  higher,  and  the 
nett  profit  comes  out  at  ^'167,600,  or  ;^^7,400  more. 
.After  again  paying  a  dividend  of  24s.  per  share,  or  12 
per  cent.,  this  increase  is  added  to  the  carry-forward, 
which  now  amounts  to  ^"97,600.  Current  and  deposit 
accounts  have  increased  ;^  1,140,000  to  ;£!9, 170,000,  and 
other  accounts  are  up  ;£^400,ooo  at  /,"2,o_'c,ooo,  but  bills 
payable  have  fallen  ^^700,000  to  ;^'2 , 1 60,000.  On  the 
other  hand,  cash  has  risen  ^^910,000  to  ;^i'3,867,ooo, 
while  discounts  and  advances  are  ^80,000  lower  at 
;^ii, 540,000.  The  balance-sheet  totals  at  ^^15, 614, 000, 
an  increase  of  ;^830,ooo ;  but  the  figures  indicate  a 
rather  stagnant  condition  of  affairs,  no  doubt  owing 
to  the  difficulties  under  which  trade  with  South  America 
and  Europe  has  to  be  conducted. 


W.  T.  Henley's  Telegraph  Works  Co.,  Ltd.,  made 
further  substantial  progress  last  year,  the  trading 
profits  after  providing  for  special  taxation  showing  an 
increase  of  ^^40,000  at  ;^238,7oo,  following  a  gain  of 
;^,37,ooo  in  1916.  The  allowance  for  depreciation  of 
plant,  &c.,  is  increased  by  ;^6,ooo  to  ;^66,300,  and 
income-tax  requires  ^11,000  more  at  ^^28,750,  but 
;^  1 5,000  more  was  brought  in.  There  is  a  slight 
change  in  the  form  of  the  accounts,  and  we  need  not  go 
through  all  the  details,  but  after  placing  ;^'25,ooo 
against  ;£, 20,000  to  reserve  and  repeating  the  dividend 
(with  bonus)  of  25  per  cent,  the  carry  forward  is  in- 
creased by  ;^42,ooo  to  ;£i  12,000,  subject  to  excess  duty 
for  the  past  year.  Changes  in  the  balance-sheet  are  of 
little  importance,  but,  as  already  announced,  it  is  pro- 
posed to  split  the  ordinary  ;^5  shares  into  ;i^i  shares 
and  to  increase  the  capital  to  ;j6oo,ooo  by  the  creation 
of  ;^2O0,ooo  new  ordinary  shares.  This  has  been  sanc- 
tioned by  the.  Treasury,  but  the  further  proposal  to 
capitalise  the  Tyre  business  as  a  separate  concern  is 
held  up  for  the  present.  Shareholders,  however,  need 
not  worry,  as  the  bonus  from  this  scheme  must  accrue 
ultimately,  and  they  can  afford  to  wait.  The  stupidities 
of  the  New  Issue  Committee  of  the  Treasury  have  com- 
I>elled  even  Sir  Fredk.  Banbury  to  resign,  and  a  little 
business  sanity  may  be  inoculated  into  the  Department 
presently. 


For  some  time  past  articles  of  vivid  interest  have 
been  appearing  in  the  Daily  Mail  from  the  pen  of  Mr. 
P>nest  Lionel  Pyke.  This  English  gentleman  had  the 
misfortune  to  be  caught  by  the  outbreak  of  the  war 
while  taking  the  cure  at  Homburg,  and  has  been  kept 
a  prisoner  in  Germany  until  a  few  weeks  ago.  But 
although  a  prisoner,  he  seems  to  have  had  a  good 
many  influential  friends  in  Germany,  and,  to  have  been 
permitted  a  large  amount  of  personal  liberty.  For  a 
time  he  was  inspector  of  the  kitchen  at  Ruhleben,  and 
had  unusual  means  of  noting  the  changes  the  war 
effected  in  the  routine  of  German  civilian  existence. 
His  articles  have,  therefore,  been  full  of  instruction, 
and  should  be  published  in  book  or  pamphlet  form,  so 
that  the  ignorant  ideas  prevalent  here  regarding  the 
internal  miseries  of  Germany  might  be  wholesomely 
modified.  It  is  not  realised  here,  for  example,  that 
both  Germany  and  Austria  are  hungry  with  a  hunger 
which  is  now  dangerously  near  the  point  of  absolute 
famine.  Possibly  the  population  of  the  German  Em- 
pire is  not  yet  so  close  to  unrelievable  food  destitution 
as   that   of   the    Habsburg    Empire,  but    it    is    hungry 


enough  to  make  it  probable  that  one  main  reason  for 
the  German  onslaught  at  the  beginning  of  the  third 
week  of  last  month  was  the  desire  of  the  Nemesis- 
pursued  Prussian  slave-drivers  to  find  some  way  of 
escape  from  the  coming  retribution.  In  Austria  it  is 
known  conditions  must  to-day  be  such  as  to  render 
a  devouring  famine  a  certainty  unless  relief  can  be 
found  by  breaking  into  some  source  of  supplies  our 
sea  blockade  and  rigorous  siege  on  land  shuts  them 
out  from.  In  Germany  it  will  very  .soon  now  be  no 
better.  The  Prussians  have  failed  to  find  the  grain 
they  have  scrambled  after  in  Russia,  and  Rumanian 
supplies,  if  any  exist  still,  are  not  sufficient  to  feed  the 
Austro-Hungarian  armies,  let  alone  the  civil  popula- 
tion, and  nothing  is  left  for  Germany.  Worst  of  all, 
the  prospect  of  harvest  for  this  year  in  both  Empires 
must  in  the  nature  of  things  be  worse  than  it  has  been 
in  any  year  since  the  war  Prussia  forced  upon  us 
began.  There  is  neither  labour  nor  the  fertilisers 
available  to  make  it  otherwise,  so  that,  were  the  Ger- 
mans to  lay  down  their  arms  to-morrow,  we  believe 
the  prospect  to  be  such  that  famine  would  continue 
to  gnaw  at  the  vitals  of  the  country  for  some  years  to 
come.  The  generation  which  has  been  destroyed  by 
the  war  cannot  be  replaced  by  any  device  of  the  war- 
masters  or  of  the  fool-politician.  Mr.  Pyke  regards  it  as 
probable  that  hunger  will  incite  the  Germans  to  break 
out  in  revolution.  "At  one  period  of  the  war,"  he 
says,  in  the  article  printed  last  Wednesday,  "  it  was 
the  fashion  to  say  that  the  Germans  were  so  docile 
and  well  drilled  that  they  would  never  revolt.  Then 
came  the  food  riots,  strikes,  and  other  demonstrations 
of  unrest  at  Berlin,  Essen,  Hamburg,  Kiel,  Dusseldorf, 
Leipsic,  and  elsewhere,  also  in  Austria,  at  Vienna  and 
Prague,  for  instance.  People  then  said  there  might 
be  a  revolution  in  Germany  after  the  war,"  but  Mr. 
Pyke  seems  to  think  that  it  may  come  in  time  to  help 
to  end  the  war,  and  nobody  here  can  dogmatically  say 
that  he  is  wrong.  But  a  revolution  could  not  now 
save  the  Germans  from  the  retribution  their  crimes  are 
bringing  upon  them. 


Al 


TS3 


PASS  DOWN  THE  PLATFORM 

There  are  four,  five,  or  six  cars  to  a  train. 
There  are  two  gates  to  a  car,  and  sometimes 
three.  Two  passengers  cannot  get  through 
the  same  gate  at  the  same  time,  but  they 
can  get  through  different  gates  at  the  same 
time.     Even  loading  means  quicker  loading. 


UNSERGROUFjn 


Electric  Railway  House,  Broac!way,  Westminster,  S.W.I. 


35» 


^bc  Jnvestocs'  IRcvtew. 


April  13,  1918. 


Mappin  and  Webb,  Limited,  closed  the  year  1915 
with  a  debit  of  ;^3 1,150  at  profit  and  loss,  and  1916 
saw  this  converted  iiiito  a  credit  balance  of  ;^9,23o, 
which  wais  carried  forward.  Last  year  the  trading 
profits  amounted  to  £Si,j(io,  an  increase  of  ;^'26,ooo, 
and,  after  providing  for  depreciation,  debenture  in- 
terest, &c.,  the  nett  profit  is  ;^"i6,400  hight-r  at 
^46,780.  Jhis  allows  of  tlie  payment  of  two  years' 
preference  dividend,  leaving  12  months  in  arrear,  but 
this  might  ha\e  been  paid,  as  the  carry  forward  of 
^'20,890  is  more  than  sufficient  to  cover  it.  All  the 
same,  t'hc  directors  are  prudent  in  keeping  a  subsitan- 
tial  balance  in  hand.  It  is  stated  th«t  the  improve- 
menit  In  trading  is  being  mainitained,  and  if  it  con- 
tinues, the  position  w.ill  be  appreciably  stronger  a  year 
hence.  Very  satisfactory  progress  has  been  made 
since  changes  in  the  management  were  made  about 
three  years  ago,  and  we  are  glad  to  see  this  fine  old 
business  obtainin.g  results  more  worthy  of  its  tradi- 
tions. No  doubt  it  has  benefited  recently  by  the  in- 
creased spending  power  of  the  people,  but,  even  in 
normal  times,  it  ought  to  be  able  to  do  a  very  profit- 
able trade. 


ceed  with'  the  second  case,  as  no  useful  purpose  would 
be  served  thereby.  But  it  is  obvious  that  the  Inland 
Revenue,  having  admitted  that  mines  are  wasting 
as.sets  for  excess  profits  duty  purposes,  it  must  logically 
admit  this  position  in  regard  to  imome-tax  in  the 
future. 


In  1916  the  profits  of  Val  de  Travers  A.sphalte 
Paving  Q>.,  Ltd.,  showed  an  increase  of  ;£,'2,7oo,  but 
less  was  received  as  interest,  and  a  smaller  amount 
was  brought  in,  with  the  result  that  the  dividend  had 
to  be  reduced  from  5  per  cenit.  to  3  per  cent.  Having 
regard  to  all  the  circum.sitances,  it  is  satisfactory  to 
find  that  last  year  the  results  were  so  well  maintained, 
the  changes  in  the  figures,  indeed,  being  jilmost  micro- 
stopic.  Trading  profits  show  an  increase  of  ;^70  at 
^"19,520,  but  while  ^"400  more  at  ;£'2,i4o  had  to  be 
allowed  for  depreciation,  only  ;^i,c)oo  was  written  off 
mining  property,  against  ;^i,470  set  aside  to  wipe  out 
the  cost  of  the  Venezuelan  concession,  and  the  nett 
profit  is  practically  the  same  at  ;^i4,68o.  Conse- 
quently, the  dividend  of  3  per  cent,  is  repeated,  and 
the  balance  forward  is  the  same  at  ;^i,900.  With 
economies  enforced  on  local  authorities,  and  the 
scarcity  of  labour,  it  would  not  have  been  at  all  sur- 
prising if  the  business  had  suffered  a  serious  set-back, 
and  strict  economy  must  have  been  observed  to  secure 
the  results  which  have  been  achieved. 


The  report  of  the  Institution  of  Mining  and   Metal- 
lurgy for  the  past  year  is  full  of  interesting  and  impor- 
tant information.      It  is  the  senior  organisation   of  its 
kind   in    the  world,   and   its    activities    have    naturally 
never  been  on  such   a  vast   scale   as  during  the  war. 
Very  little  information  on  its  direct  war  work,  however, 
can  be  given  at  this  stage,  but  the  Joint  Committee  of 
the  Institution,  which'  was  appointed  to  obtain  an  ad- 
justment of  the  incidence  of  taxation  on  the  mining  in- 
dustry has  achieved  a  very    notable    success.       As    a 
result  of  negotiations  with  the  Board  of  Inland  Revenue, 
the   latter    has   admitted    the    committee's    claim    that 
mines    are    wasting     assets,     and    that     amortisation 
of  _  capital     during    life    should   be   allowed    in   calcu- 
lating liability  to  excess  profits  duty.     This  is  a  com- 
plete reversal  of  its  former  attitude.       The   Board  of 
Revenue,    in  agreement  with   the   Board  of   Referees, 
requested  the  Institution  to  take  two  selected  groups — 
one  gold  and  one  copper — and  to  present  them  as  repre- 
sentative cases.       The  t^vo   groups  eventually   agreed 
upon  were  gold  ironing  in  West  Africa  and  copper  min- 
ing in  Australia,  and  the  West  African  case  was  taken 
for  it.     The  preparation  of  this  case  necessitated   an 
extensive  rtiTiestigation,  which  entailed  the  examination 
of   records  for  ten  years  of  over  250  companies,  the 
results  of  which  had  to  be  classified  and  submitted  to 
accountants  for  verification  and  for  detailed  calculations 
for  th'e  preparation  of  tables.     The  Board  of  Referees 
eventually  fixed  at  22J  per  cent,  for  the  industry,  but  it 
took  its  action  not   upon  any  of   the    nine    alternative 
methods  of  computation,  nor  upon  the  alternative  sub- 
mitted by  the  Board  of  Inland  Revenue.     Consequently 
much  of  the  labour  was  wasted,  for  no  rulings  were  ob- 
tained on  principles,  which  was  the  main  object  of  the 
committee  ;  and  it  has  therefore  been  decided  not  to  pro- 


Ministers   in   a   Panic   and    an    Irish 
Revolt. 

Why  is  it  that  the  present  Government  every  little 
while  gets  into  a  panic  and  does  its  best  to  put  the 
whole  nation  into  one  likewise?  We  fear  it  is  because  it 
is  an  impressionist,  emotional  administration,  without 
sufficient  grasp  of  the  forces  it  is  driven  by,  to  be  able 
to  initiate  and  sustain  a  consistent,  resolute  ix)licy.  At 
first  the  Prime  Minister's  speech,  in  which  he  gave  his 
reasons  for  the  new  man-power  extension  proposaJs, 
together  with  a  narrative  of  the  sets-back  in  the  field 
which  led  to  the  decision,  disposed  us  to  let  things 
.slide.  An  emergency  is  before  the  country  unquestion- 
ably, not  an  appalling  emergency,  nor  one  that  in  any 
measure  forebodes  our  ultimate  defeat,  still  an  emer- 
gency of  such  gravity  as  requires  .stern  resolve  and  the 
utmost  determination  to  hold  fast  and  hold  on.  If, 
then,  the  authorities  in  charge  of  the  nation's  affairs 
at  this  crisis  feel  that  extra  efforts  are  demanded,  the 
nation  can  only  assent,  bow  its  head,  and  submit.  In 
the  end  it  must  do  so,  whether  convinced  of  the  necessity 
or  not. 

This  is  the  fact,  and  yet  we  do  not  quite  see  how  our 
military  power  is  to  be  strengthened  by  the  calling  up 
of  men  of  50  years  of  age,  or,  in  the  case  of  medical 
officers  (and  perhaps  parsons),  of  men  of  55  ;  but  the 
Government  says  it  must  have  these  men,  and  however 
much  the  nation's  industries  and  business  may  be  ham- 
pered, or  even  permanently  injured  by  the  necessity  of 
obeying  this  call,  it  will  probably  get  the  power  to 
enrol  them.  There  can  be  no  question  about  the 
nation's  willingness.  At  the  same  time,  the  country 
is  not  disposed  to  be  hustled  into  this  latest  war  measure 
without  reflection  or  discussion,  or  without  being  given 
sufficient  reason  for  the  further  call  upon  its  energies, 
and  Mr.  Asquith's  suggestion  that  more  time  should 
be  given  for  an  examination  of  the  Bill  had  to  be 
listened  to.  It  is,  on  the  face  of  it,  a  hurry-skurry, 
dashed-at-in-a-panic  measure,  and  the  inclusion  of  Ire- 
land in  the  conscription  law  may  turn  out  to  be  a  mis- 
take, made  in  the  heedlessness  of  the  moment,  fraught 
with  disastrous  consequences  to  the  Government  de- 
sign, though  not,  we  hope  and  believe,  to  the  resolute 
prosecution  of  the  war. 

How  has  the  necessity  arisen  for  this  scrambling 
speed?  The  Prime  Minister  himself  let  out  the  secret, 
and  we  are  surprised  at  his  naivety  in  doing  so.  Were 
his  mind  as  astute  as  his  language  is  often  adroit,  he 
surelv  would  have  kept  .silence  or  turned  down  another 
path.  Varied  motives,  however,  may  have  impelled 
him  to  tell  the  House,  with  an  air  of  confiding  in  it, 
that  Sir  Henry  Wilson,  the  recently  appointed  Chief  of 
the  Staff,  gave  a  forecast  of  the  present  campaign  "  in 
the  month  of  January  or  the  beginning  of  February 
last,"  in  which  he  foreshadowed  the  actual  purpose  and 
scope  of  the  German  attack  commenced  on  March  21. 
It  would  come  south  of  Arras,  Sir  Henrv  predicted,  and 
would  be  an  attack  on  "  the  widest  front  that  has  ever 
yet  been  assailed."  The  Germans  would  accumulate 
9^  divisions  to  make  it  with,  and  would  throw  the  whole 
oif  their  forces  and  their  strength  into  the  task  of 
breaking  the  British  lines  at  the  point  selected.  Their 
objective  was  to  be  Amiens,  and  the  end  sought  was  the 
severance  of  the  British  and  French  forces.  That  was 
the  anticipation  submitted  by  Sir  Henrv  Wilson  two  or 
three  months  ago,  and  Mr.  George  characterised  it  as 
"  one  of  the  most  remarkable  forecasts  of  enemy  inten- 
tions that  has  ever  been  made" 

It  may  have  been,  but  that  is  not  the  point.  The 
point  is^— what  did  the  Government  do  in  obedience 
to  this  intelligent  anticipation  of  the  enemv's  plan? 
Did  It  hurrv  up  every  available  man  It  could  lav  hands 
on  in   the  countrv  and  forward  artillen-  and  ammuni- 


April  13,  1918. 


^he  investors'  IRevtew. 


359 


tions  of  ever>'  description  m  quantities  overwhelming, 
ao  as  to  be  ready  at  all  points  to  parry  the  blow?  No; 
it  did  nothing-.  Mr.  George  docs  not  even  tell  us 
whether  Sir  Henry  Wilson's  forecast  had  ever  been 
communicated  to  Sir  Douglas  Haig.  The  War  Cabinet 
mav  have  thought  that  the  Commander-in-Chief  knew 
it  already,  being  a  man  of  intelligence  and  experience 
who  had  often  asked  for  reinforcements.  The  Prime 
Minister  tufned  off  on  the  side  issue  of  a  united  com- 
mand, with  a  view,  apparently,  of  mitigating  the 
censure  which  might  fall  upon  his  own  administration, 
iuid  then  led  the  House  towards  thoughts  of  military 
glory  by  gi\ing  a  vivid  description  of  the  stern  re- 
sistance offered  by  Brigadier-General  Carey  and  a 
chance  gathering  of  troops  under  him — a  mixed  mass 
of  signalmen,  engineers,  labour  men,  and  odds  and  ends 
of  machine  gunners — who  closed  the  gap  the  Germans 
had  forced  open  that  might  have  led  the  way  to  Amiens. 
They  held  the  foe  at  bay  for  nearly  six  days.  Mr. 
George  was  probably  right  in  describing  this  as  "one 
of  the  most  briWiant  achievements  in  the  history  of  the 
British  Army."     It  assuredly  averted  disaster. 

But  wh)'  was  costly  heroism  like  this  necessary  ? 
Because,  prophecies  and  warnings  or  none,  instead  of 
having  our  Army  accumulated  in  France,  tens  and 
hundreds  of  thousands  of  the  men  in  it  were  in  Eng- 
land. Vou  could  not  go  to  any  city,  town,  or  village 
in  the  United  Kingdom  without  encountering  men  on 
leave.  The  London  streets  swarmed  with  them,  and 
many  of  the  influences  under  which  thev  came  here 
were  not  calculated  to  improve  their  discipline  or 
temper  their  courage. 

So,  because  we  were  heedless,  because  our  Govern- 
ment was  heedless  and  occupied  with  man\  things 
foreign  to  the  business  in  hand,  the  enemy  neaHly  broke 
through,  and  said  Government  at  once  fell  into  a 
panic.  "  The  Cabinet,"  said  Mr.  George,  "  took  ever\ 
step  to  hurry  up  reinforcements  in  order  to  fill  up  the 
gap  in  our  armies.  No  such  large  numbers  of  men 
have  passed  across  the  Channel  in  so  short  a  period 
of  time.  As  the  emergency  was  so  great,  it  was  im- 
possible to  allow  tho.se  who  were  summoned  to  France 
the  usual  leave  to  visit  their  relatives,  and  the  troops 
deprived  of  their  promised  rest  went  cheerfully." 
Excellent  measures  taken  two  months  too  late,  and 
naturally  that  did  not  end  the  state  of  panic  in  the  War 
Cabinet  or  of  the  Ministry  in  the  bunch.  So  this  Bill 
had  to  be  jumbled  together  in  hottest  haste  and  made 
ready  for  submission  to  Parliament  v\hen  it  re- 
assembled. It  was  introduced  on  the  re-opening  day 
with  the  intimation  that  it  must  be  passed  into  law 
within  one  week.  Such  is  the  style  of  "  political 
strategy  "  with  which  we  are  assured  the  war  will  be 
won.     It  makes  us  begin  to  doubt. 

Here  we  see  the  whole  process  of  "  war  measures  " 
incubation,  and  the  Prime  Minister's  confession  in  his 
speech  warrants  us  in  saying  that  the  entire  emergency 
now  demanding  legislation  at  express  speed  has  been 
created  by  the  Ministry  itself.  Through  its  failure  to 
follow  Sir  Henry  Wilson's  Indications — common  sen.se 
previsions   of    any    kind — it    threw    an    almo.st    .super- 


human task  upon  the  troops  holding  our  part  of  the 
Western  front,  and  has  probably  added  large  numbers 
to  the  total  of  our  casualties,  to  the  discouragement 
of  the  survivors.  Wor.se  still,  if  possible,  a  domestic 
cleavage  has  been  created  which  it  would  have  been 
well  to  keep  invisible  while  the  war  lasted.  By 
dragging  Ireland  within  the  scope  of  the  conscription 
law  the  Nationalists  have  been  given  an  opportunity — 
and  a  well-grounded  opportchity — to  rise  in  Parlia- 
mentary revolt,  and  to  denounce  the  Government 
for  its  treachery,  repudiating  its  legislative  power 
over  Ireland  the  while.  As  usual,  the  protests 
made  by  Irish  members  during  and  after  the  Prime 
Minister's  speech  were  in  heated  language,  suggestive 
not  merely  of  exaggeration,  but  of  political  strategy 
not  altogether  admirable  because  not  wholly  sincere. 
But  behind  it  all  lay  the  fact  that  no  British  Govern- 
ment, least  of  all  this  one  headed  by  Mr.  Lloyd  George, 
has  had  the  courage  to  carry  out  the  law  of  the  land  in 
defiance  of  faction  and  landlord  power.  Home  Rule 
for  Ireland  is  on  the  Statute  Book,  and  it  might  just 
as  well  have  never  been  enacted  for  all  that  has  been 
done  to  enforce  the  law.  The  great  landlords  of  Ire- 
land and  England  have  again  been  too  powerful  for 
the  philanthropy  and  brotherly  feelings  of  our 
Ministries,  smothered  in  good  intentions,  and  it  is  no 
exaggeration  to  say  that  in  the  matter  of  moral  courage 
and  perspicacity,  of  wise  and  practical  statesmanship 
based  on  an  understanding  of  the  problem  and  the 
determination  to  be  honest  at  no  matter  what  cost,  our 
present  treatment  of  Ireland  is  on  all  fours  with  our 
treatment  of  Turkey  during  all  the  second  half  of  last 
century.  Is  it  to  be  wondered  at  that  Irishmen,  loyal 
as  the  great  majority  are  and  eager  to  take  their  share 
in  this  war  of  deliverance,  see  their  chance  of  revenge 
in  wrecking  this  Bill? 

Will  Irish  opposition  destroy  this  Man-Power  Bill? 
It  would  not  surprise  us  if  it  did,  nor  would  it  excite 
any  great  measure  of  regret  anywhere.  It  is  a  panic 
measure,  and  therefore  as  likely  as  not  useless  for  the 
object  sought.  The  Prime  Minister  talked  about  our 
American  Allies,  about  the  "  material  and  dramatic  " 
assistance  rendered  by  President  Wilson  in  this  emer- 
gency, and  said  that  the  Allies  looked  forward  to 
having  a  large  American  army  in  France  in  the  spring, 
although  "  it  would  not  be  possible  for  these  fine 
.\merican  troops  in  any  large  numbers  to  take  part  in 
this  battle,"  which  might  well  be  "  the  decisive  battle 
of  the  war."  That  is  probably  true  in  some  measure, 
although  the  final  decision  may  not  come  until  after 
many  battles  have  been  fought.  But  why  did  not  Mr. 
George  remind  the  country  that  American  troops  are 
already  in  the  battle  line,  and  will  be  so  in  augmenting 
numbers  as  the  weeks  pass?  Did  he  forget  because  the 
Americans  are  away  in  the  right  wing  of  the  French 
armies?  .American  airmen,  too,  are  proving  brave  and 
expert  fighters  alongside  the  French  and  British  air- 
men, and  facts  like  these  will  not  be  forgotten  by  the 
nation  in  weighing  the  pros  and  cons,  of  this  panic 
extension-of-age  Bill.  It  will  be  asked,  for  instance,  by 
how  much  our  .Army  will  be  strengthened  by  the  old 


TD. 


STANDARD  BANK  DF  SOUTH  AFRICA,  L 

Bankers  to  the  Government  of  the  Union  of  South  Africa  in  Cape  Province :   to  the  Imperial  Government  in  South  Africa  and  to  the  Adminietration 

of  Rhodesia. 


Subscribed  Capital 
Paid-up  Capital... 


£6,194,100 
£1,548,525 


Reserve  Fund     ... 
Uncalled  Capital 


£2,000,000 
£4,645,575 


WM.  REIERSON  ARBUTHNOT,  Esq. 

SIR  DAVID  M.  BARBOUR,  K.C.S.I.,  K.C.M.G. 

ROBERT  E.  DICKINSON,  Esq. 


Board     of     Directors. 

JAMES  FAIRBAIRN  FINLAV,  Esq.,  C.S.I. 
HORACE  PEEL,  Esq. 
WILLIAM  SMART,  Esq. 


Rt.  Hon.  LORD  SYDENHAM,  G.C.S.I., 

G.G.M.G..  G.C.I.E.,  G.B.E. 
H.  L.  M.  TRITTON,  Esq. 


Hoad  Offices   lO  CLEMENTS  LAME,  LOMBARD  STREET,  LONDON,  E.C.  4. 

New  York  Agency:— 68,  WALL  STREET,    Over  250  Branches  and  Agencies  in  South  and  East  Africa- 


EVERY  DESCRIPTION  OF  BANKING  BUSINESS  transacted  with 
the  Cape  Province,  Natal,  Orange  Free  State,  Transvaal,  Rhodesia, 
Nyasaland,  East  Africa  Prot«otorate,  Uganda,  Zanzibar,  Portuguese 
East  Africa,  South-West  Africa  Protectorate,  and  the  Belgian  Congo, 
and  with  the  Bank's  Agencies  in  New  York  and  elsewhere. 

CURRENT  ACCOUNTS  are  opened  on  the  usual  terms. 

DEPOSITS  RECEIVED  for  fixed  periods  at  rates  which  may  be  ascer- 
tained on  application. 

BILLS  NEGOTIATED  AND  COLLECTED. 


The  officers  of  tire  Bank  are  bound  not  to  disclose  the  transactions  of  any  of  its  customers. 


MAIL  AND  TELEGRAPHIC  REMITTANCES  made. 

LETTERS  OF  CREDIT  AND  DRAFTS  granted  on  the  branches  and 

Agencies  of  the  Bank. 
THE  BANK  ISSUES  C  RC    LAR  LETTERS  OF  CREDIT  available 

in  all  parts  of  the  world. 
COMMERCIAL  LETTERS  OF  CREDIT  ISSUED. 
PURCHASE  AND  SALE  OF  STOCKS  AND  SHARES  effected. 
DIVIDENDS.  ANNUITIES.  &c.,  received. 
EXECUTOR  AND  TRUSTEE  Business  undertaken. 


FRANCIS  SHIPTON,  London  Manager. 


360 


Zbc  investors'  IRevtew. 


April  13,   1918. 


men  added  to  it,  by  the  parsons  and  others  roped  in  as 
non-combatants. 

[Why,  by  the  by,  are  preachers  of  all  sects  and  creeds 
to  be  treated  differently  from  the  priests  and  pastors  of 
France,  who  have  to  fight  in  the  ranks  just  as  their 
untonsured  fellowmen  do,  alongside  the  tailor,  the 
cobbler,  the  grocer,  the  baker,  and  field  labourer.  This 
differentiation  will  not  conduce  to  the  strengthening 
of  the  hold  of  the  sects  over  the  people.] 

Will  not  the  fighting  be  over  before  these  recruits 
are  in  a  position  to  shoot  even  should  the  campaign 
last  into  1919,  as  Lord  Curzon,  oblivious  of  Germany's 
extremity,  seems  to  believe?  If  there  is  real  need,  and 
if  a  genuine  use  could  be  made  of  these  elderly  men,  we 
feel  sure  that  neither  they  nor  the  nation  would  utter 
a  syllable  in  objection  to  their  being  called  up.  But  as 
their  summons  is  confessedly  a  consequence  of  the 
Government's  disregard  of  warnings,  and  general 
apathy  towards  military  necessities,  there  will  be  the 
strongest  objection  in  many  quarters,  and  from  Ireland 
such  opposition  as  may  well  do  mischief  to  the  true 
military  interests  of  the  country  in  this  time  of  stress 
and  agonising  strain.  Does  the  Prime  Minister  think 
he  is  "getting  on  with  the  war"  by  this  distempered 
law  making? 


Capital  and  Labour— and  the  Landed 
Interests. 

A  letter  appeared  in  the  Times  of  April  2  from  the  pen 
of  Mr.  Frederick  Huth  Jackson,  one  of  the  ablest  of 
our  City  business  men.  It  was  devoted  to  a  discussion 
of  the  resettlement  of  industry  quesLion,  and  enunciated 
some  indubitable  truths.  Nothing,  for  instance,  can  be 
more  sure  than  that  problems  of  infinite  importance 
will  confront  us  when  peace  returns,  and  the  first  of 
these  problems  is  demobilisation,  or,  as  Mr.  Jackson 
phrases  it,  "  the  reinstatement  in  civil  employment  of 
our  fighting  men  and  the  transfer  to  normal  employ- 
ment of  civilian  workers  of  both  sexes  now  so  largely 
engaged  in  war  work."  Above  and  beyond  these  in- 
sistent problems,  which  are  already  beginning  to  ex- 
cite many  anxious  thoughts,  there  is  the  question  of 
the  relation  of  labour  to  capital.  Mr.  Jackson  admits 
that  these  two  designations  represent  interests  now 
antagonistic.  Some,  he  says,  maintain  that  there  is 
and  always  must  be  "  a  fundamental  antagonism  be- 
tween capital  and  labour,"  and  he  admits  that  in  past 
time  the  capitalist — if  that  is  the  correct  term  for  the 
employer — "has  in  many  instances  exploited  all  the 
labour  for  his  own  profit,  and  has  shown  little  regard 
to  the  welfare  of  the  men  as  individuals  apart  from 
the  commercial  value  of  their  labour  to  him."  We 
know  this  state  of  things  exists.  It  confronts  us  every 
day  of  our  lives  in  the  recitals  of  trade  disputes,  of 
threatened  strikes  or  actual  strikes,  and  in  continual 
manifestations  of  dis.';atisfaction  with  their  lot  amongst 
the  working  men.  Therefore,  the  dominating  ques- 
tion which,  above  and  before  all  others,  demands  solu- 
tion is  the  question  of  reconcilement  of  the  antagonist 
interests.  We  scan  papers  and  books  continually  to 
try  and  light  upon  some  gu'dance  in  the  solution  of 
this  problem,  and  hitherto  have  found  none.  Mr.  Huth 
Jackson  tells  us  that  labour  is  entitled  to  demand,  and 
to  obtain,  in  future  proper  treatment,  and  a  recognition 
of  its  rights  to  its  proportionate  share  of  the  profits  o! 
industry,  whether  in  the  shape  of  increased  wages  or 
by  other  methods,  but  he  does  not  give  us  the  slightest 
hint  of  how  to  go  about  the  attainment  of  this  goal. 

We  turned  for  help  the  other  day  to  a  book  pub- 
lished by  authority  of  the  Council  of  the  British  Asso- 
ciation to  see  whether  it  would  assist  us  at  all.  It  is 
called  "  Industry  and  Finance,  War  Expedients  and 
Reconstruction,"  and  consists  of  a  number  of  very 
capably  written  essays  gathered  together  under  the 
editorshin  of  Mr.  Adam  W.  Kirkaldy,  Professor  of 
Finance  in  the  University  of  Birmingham.  Among 
these  essays  we  found  one  on  "  Workshop  Com- 
mittees," specially  recommended  in  Mr.  Kirkaldy'.s 
preface.  It  is  written  by  Mr.  C.  J.  Renold,  of  Man- 
chester, a  man  of   large  business  experience,    and    it 


gives  no  help  whatever  towards  solving  this  governing 
problem  of  the  future.  Throughout  the  cs.say  the 
workmen  are  treated  as  a  class  apart,  and  the  writer 
deals  merely  with  the  best  way  to  arrange  for  intercom- 
munion between  the  two  classes,  whether  by  shop  com- 
mittees, as  was  suggested  by  the  Whitley  Committee, 
or  otherwise.  The  workman  is  to  be  looked  after  very 
much  as  prize  store  cattle  would  be,  so  as,  if  possible, 
to  bring  the  best  return  to  the  owner.  Now,  this  sort 
of  thing  will  no  longer  do  at  all,  and  the  relation  be- 
tween capital  and  labour  will  have  to  undergo  a  funda- 
mental change  before  we  can  begin  to  talk  of  industrial 
peace,  still  less  of  "Leagues  of  Nations,"  and  dreams 
around  im'practicable  ideals  of  that  sort.  Mr.  Jackson's 
description  of  the  common  view  of  the  relations  between 
capital  and  labour  finds  warrant  in  the  entire  history 
of  our  industrial  development,  above  all  in  the  story  of 
our  joint-stock  enterprise.  In  the  building  up  of  in- 
dustries the  workman  has  never  been  regarded  as  a 
fellow-man  with  like  aims  and  interests  to  those  of  the 
employer.  He  is  better  paid  because  he  has  more 
facilities  for  combination  than  the  agricultural  labourer, 
but  not  otherwise  more  humanely  dealt  by  or  with.  Is 
there  not  in  the  story  of  the  past  some  help  towards 
finding  a  solution  which  may  lead  to  something  better 
in  time  to  come?  Is  not  the  workman  himself  a 
"  capitalist,"  and  does  not  his  skill  and  training,  which 
represents  his  capital,  entitle  him  to  a  partner's  share 
in  the  business?  If  the  workmen  were  partners,  would 
there  be  these  constantly  recurring  disputes  over  wages, 
over  the  amount  of  work  to  be  done  per  hour,  and  other 
matters?  What  we  want  to  light  upon  is  some  method 
by  which  all  interests  will  be  harmonised  and  all  designs 
shaped  towards  the  same  end,  and  we  feel  sure  that 
the  change  can  be  attained  provided  honesty,  modera- 
tion in  desires,  and  absolute  fair  play  are  introduced  in 
the  relations  between  employer  and  employed. 

Most  urgent  of  all  is  it  that  our  agricultural  industry 
should  be  organised  and  reduced  to  a  co-ordinated 
system  in  whose  gains  all  should  have  a  share,  for 
upon  this  industry  far  more  than  on  any  other  will 
depend  our  capacity  to  maintain  national  solvency  after 
the  war.  Unless  we  can  produce  enough  food  at  home 
to  make  us  independent  on  the  average  of  years  of 
foreign  supplies,  we  shall  stand  in  the  utmost  danger  of 
falling  into  decay  as  a  great  trading  and  manufacturing 
people.  Now  no  branch  of  our  industry  is  so  out  of 
gear  and  lacking  in  organisation  on  honest  practical 
lines  at  the  present  time  as  our  agriculture.  The  proof 
lies  in  the  fact  that  ;^40,ooo,ooo  of  our  capital  borrowed 
for  war  purposes  has  had  to  be  set  aside  to  bribe  the 
farmers  to  produce  food.  That  is  not  a  wholesome 
state  of  affairs,  and  things  agricultural  cannot  remain 
as  they  are.  What  are  our  landowners,  great  and 
small,  doing  to  provide  a  cure  for  this  lamentable  state 
of  affairs?  Nothing  worth  mentioning  that  we  can 
find.  They  just  plouter  along  the  old  ruts  ;  sometimes 
obeying  the  mandates  of  the  President  of  the  Board  of 
Agriculture,  or  the  confusion  of  other  departments  that 
cross  his  authority,  sometimes  not ;  but  to  wake  up  to 
their  responsibility,  to  recognise  that  the  soil  they  claim 
to  own  is  not  theirs  to  do  with  as  they  please,  but  the 
nation's,  that  it  must  be  opened  up  for  the  settlement  of 
our  returned  soldiers,  that  it  must  be  cultivated  to  its 
utmost  degree  of  fertility,  that  the  workman — and  a 
skilled  workman  the  agricultural  labourer  emphatically 
is — must  be  treated  as  a  human  being  and  given  the 
opportunity  to  rise  in  the  world,  that  markets  must  be 
found  and  the  supplies  for  them  systematised  ;  that,  in 
short,  co-operation  in  all  departments  must  take  the 
place  of  the  old  patriarchal,  slip-shod,  pleasure-seeking 
habits  is  apparentlv  nowhere  grasped  or  even  thought 
of. 

Is  there  no  man  capable  of  leading  the  nation  towards 
a  better  system  in  agriculture?  It  is  all  very  well  to 
talk  and  write  excellent  sentiments,  but  what  is 
urgently  wanted  is  something  actually  done,  and  we 
appeal  to  the  landlords  as  being  the  greatest,  most 
despotic,  and,  on  the  whole,  most  solidly  wealthy  class 
in  the  community  to  wake  up  to  a  sense  of  their  re- 
sponsibilities.    It  is  in  their  power  to  revolutionise  for 


April  13,   1918. 


Zbc  Jnveetors'  IReview. 


361 


the  good  of  the  community  the  whole  agricultural 
system.  Will  they  step  down  from  their  privileged 
position,  divest  themselves  of  their  stifling  privileges, 
and  become  men  like  other  men  ;  submit  to  the  exigen- 
cies of  life's  conflict,  and  share  with  those  less  fortu- 
nate the  lot  that  lies  ahead  for  us  all?  If  not,  they  may 
depend  upon  it  that  they  and  all  their  beautifully 
devised  system  of  laws  and  assumptions  by  which  their 
privileges  have  been  rendered  secure  for  centuries  will 
be  swept  away. 

London  Electric   Supply   Companies. 

On  the  whole,  the  joint-stock  undertakings  which 
supply  electric  light  and  power  in  the  London  area  did 
very  well  last  year.  With  the  exception  of  the  small 
Smithfield  Markets  Company  they  all  obtained  sub- 
stantially  larger  gross  receipts,  and  in  most  cases  nett 
income  was  also  larger,  in  spite  of  the  increase  in 
working  expenses.  The  Charing  Cross  and  County  of 
London  were  unfortunate  in  this  respect,  but  on  the 
■other  hand  no  fewer  than  seven  companies  were  in  a 
position  to  raise  their  dividends,  and  in  only  one 
case  had  a  reduction  to  be  made,  as  will  be  seen  from 
the  following  summarv  of  results  : — 


Carried 
For- 
ward. 


Brompton  and  Kensington 

Do.,  1916  

Charing  Cross-West  End 

Do.  do.,  1916 

Do  ,  City 

Do.,  do.,  1916   .... 
Chelsea 

Do.,  1916 

City  of  London 

Do.,  1916   

County  of  London  . . 

Do.,  1916    

K'nsingt'n  &  Knightsbri'ge 

Do.,  1916  

Metropolitan 

Do.,  1916    

Notting  Hill 

Do.,  1916 

St.  James'  and  Pall  Mall.. 

Do.,  1916   

Smithfield  Markets 

Do.,  1916 

South  London 

Do.,  1916  

South  Metropolitan 

Do.,  1916  

Westminster 

Do.,  1916  


Gross 

Nett 

Total 

Divi- 
dend. 

Re- 

Re- 

Re- 

ceipts. 

ceipts. 

serves. 

£ 

£ 

£ 

% 

61,900 

30,320 

140,000 

10 

55,880 

23.940 

130,000 

9 

165.140 

61,870 

215,920 

4 

150,470 

71,640 

195,060 

5 

212,540 

65.390 

122,820 

nil 

176,460 

65.550 

104,560 

nil 

86,600 

35.560 

174,820 

5 

76,310 

31,680 

160,440 

3 

351-190 

141,660 

249,470 

8 

332.940 

133,830 

237,480 

8 

379.840 

153,500 

132,950 

7 

343.070 

156,900 

101,440 

7 

78,710 

23,020 

142,500 

7 

68,060 

21,470 

136,960 

6 

318  220 

133,670 

427,360 

4 

277,900 

116,900 

377.360 

3 

51.380 

24,270 

54.300 

300 

46,790 

23.300 

51.360 

300 

161,150 

37.850 

86,000 

9 

143,070 

28,000 

81,500 

8 

15,620 

2,270 

11,720 

nil 

16,400 

3,800 

12,010 

nil 

66,660 

30,940 

70,400 

5 

59,040 

28,390 

61,930 

5 

131,930 

55.160 

81,600 

6 

95,880 

50,510 

76,450 

4 

306,180 

88,820 

383.270 

9 

262,620 

66.290 

357.150 

7 

£ 
5.220 

5.075 

8.285 

15.090 

18,000 

18,000 

3.480 
3,680 

17.570 
17.130 
15,020 
18,380 
580 
205 

4,930 
4,760 

1.750 
400 
5.290 
2.590 
1,210 
2,110 
3.420 
3.050 
7.630 
7.250 
13.270 
2.950 


Few  of  the  companies  give  complete  details  about 
the  amount  of  electricity  generated  and  sold,  or  the 
average  charge  per  unit.  It  is  a  pity  that  Parliament 
did  not  insist  on  uniformity  in  this  respect,  as  it  does 
in  the  case  of  railways  and  gas  undertakings,  but  the 
companies  themselves  might  with  advantage  supply 
fuller  information.  The  Brompton  and  Kensington 
^ives  an  interesting  statement  showing  the  progress 
of  the  business  since  the  start  in  1890.  In  that  year 
there  were  248  consumers,  with  the  equivalent  of 
'3.665  lamps  (35  watt)  connected;  in  1917  there  were 
6,860  customers,  with  383,840  lamps,  increases  of  180 
and  38,100  respectively  over  the  previous  year.  Evi- 
dently strict  economy  was  enforced,  and  the  expendi- 
ture was  actually  rather  less  than  in  1916,  notwith- 
standing the  increase  in  the  fuel  bill.  No  such  luck 
fell  to  the  lot  of  the  Charing  Cross  Company,  which 
still  presents  .separate  accounts  for  the  West-end  and 
City  undertakings.  In  the  former  section  the  lamps 
{30  watt)  connected  increased  16,500  to  741,000,  and 
the  units  sold  rose  614,000  to  12,390,000.  But, 
whereas  gross  receipts  advanced  j^i 5,000,  expenses 
were  ;^25,ooo  higher,  purchase  of  current  in  bulk  from 
the  City  station  alone  costing  ;^i 7,000  more.  Even 
so,  the  City  business  was  not  very  profitable.  Lamps 
connected  increased  41,000  to  790,000,  but,  while  re- 
ceipts improved  ;^36,ooo,  expenses  advanced  to  a 
corresponding  extent,  and,  after  paying  fixed  charges. 
Including  preference  dividend,  and  placing  ;£J'i8,25o  to 


reserve,  the  carry-forward  remains  at  ;^i8,ooo. 
Units  sold  amounted  to  32,210,000,  an  increase  of 
3,800,000,  while  the  fuel  bill  alone  rose  ;^28,ooo,  and 
we  are  inclined  to  think  that  there  is  room  for  economy 
here.  The  Chelsea  company,  along  with  the  St. 
James'  and  Westminster,  takes  part  of  its  current 
from  the  Central  Supply  Co.,  Ltd.,  but  the  fuel  bill 
increased  ;£^3,4O0,  and  expenses  altogether  were 
;^6,400  up.  Lamps  connected  showed  an  increase  of 
g,6oo  at  337,000,  and  the  units  sold  were  467,200 
higher  at  4,739,000.  The  City  of  London  sold 
29,700,000  units,  an  increase  of  715,000,  and  expenses 
were  ^^10,400  higher,  of  which  ;^8,ooo  was  due  to 
fuel.  In  the  case  of  the  County  of  London  the  units 
sold  increased  2,565,000  to  37,595,000,  and  expenses 
advanced  ;^40,ooo,  of  which  ;^i8,ooo  has  to  be  de- 
bited to  the  coal  bill.  The  Kensington  and  Knights- 
bridge  states  that  the  lamps  (30  watt)  connected  in- 
creased 35,450  to  557,600,  and  the  number  of  units 
sold  was  nearly  half-a-million  larger,  an  increase  of 
loj  per  cent.  Expenses  accordingly  rose  ;^9,ooo, 
so  that  most  of  the  gain  in  revenue  was 
wiped  out.  Units  sold  by  the  Metropolitan 
Company  increased  nearly  four  millions  to  28,446,000, 
and  the  expenses  were  ;^23,50o  higher,  of 
which  ;^i9,c)oo  was  due  to  fuel,  while  £10,000  more  at 
;£'5o,oc>o  was  placed  to  depreciation  and  reserve  fund. 
There  are  only  27,000  shilling  ordinary  shares  in  the 
Notting  Hill  Co.,  so  that  the  big  dividend  only  absorbs 
a  little  over  ;^3,c)oo.  Lamps  connected  (30  watt)  num- 
bered 252,300,  an  increase  of  10,500.  The  St.  James' 
and  Pall  Mall  purchased  nearly  the  whole  of  its  cur- 
rent— 15,643,000  units,  an  increase  of  1,160,000 — and 
costs  advanced  ;£J"8,300.  Units  sold  by  the  South  Lon- 
don Co.  increased  851,600,  or  i2f  per  cent.,  and  ex- 
penses were  ^'5,000  higher,  almost  entirely  due  to  the 
higher  cost  of  fuel.  We  get  very  little  information 
from  the  South  Metropolitan  Co.,  but  the  horse  power 
(746  watts)  connected  increased  2,500  to  23,900.  Ex- 
penditure, however,  rose  ;^3 1,400,  so  that  most  of  the 
gain  in  gross  receipts  was  wiped  out.  From  the  West- 
minster we  only  learn  that  the  total  power  connected 
rose  from  44,000  to  48,100  k.w.,  which  is  not  very 
illuminating,  while  expenses  advanced  ;^20,ooo. 

Looking  at  the  results  generally,  we  think  it  is  fairly 
obvious  that  the  present  system  of  small  individual 
plants  is  most  wasteful  and  uneconomic.  The  whole 
of  the  energy  required  could  be  quite  easily  provided 
from  a  central  generating  station  at  a  fraction  of  the 


NOW  READY. 


ALL    INVESTORS 

should  read   the    introductory  article  to  the  April, 
1918,  Quarterly  Supplement  (price  4d.  post  free)  of 

"THE  100  BEST 
INVESTMENTS" 

ENTITLED, 

"  INVESTMENT  UNDER  PRESENT  CONDITIONS," 

which  deals  fully  and  frankly  with  the  present  position  and 
outlook  of  affairs  from  the  point  of  view  of  the  investor,  large 
or  small.  The  Quarterly  Supplements  contain  up-to-date 
details  of  1 00  specially  selected  securities,  covering  the  whole 
available  field  of  investment — from  National  War  Bonds  to 
Ordinary  Shares  in  Industrial  Companies  —  particulars  of 
further  investments  considered  worthy  of  attention,  a  number 
of  useful  tables  and  hints  of  value  to  everyone  concerned  with 
the  remunerative  employment  of  capital. 

The  Annnal  Volume Price     Is. 

(Published  in  July.) 

Quarterly  Supplements         -----         Price  4d. 

(PublisKed  January,  April,  and  October.) 

Post  free  on  rtceipt  of  remittance  to  the  Publishers^ 

The  British,  Foreign  and  Colonial  Corporation,  Ltd., 
Investment  Bankers, 

57,  BISHOPSGATE,    LONDON,  E.C.  2. 


363 


Zbc  investors'  IReview 


April  13,   1918. 


present  cost.  To  a  limited  extent  this  is  accomplished 
by  the  Central  Supply  Co.,  but  the  whole  business  re- 
quires to  be  reorganised,  and  it  would  pay  to  scrap 
existing  plants  in  favour  of  a  more  up-to-date  system. 
As  .several  of  the  companies  are  really,  if  not  nominally, 
under  one  control,  there  ought  to  be  no  difficulty  in 
arranging  this,  and  we  cannot  afford  in  the  future  to  go 
on  with  the  old  haphazard  methods  which  have  served 
us  in  the  past. 

By-the-Way  War  Notes. 

Sur>erfioially,  the  military  position  looks  nearly  as  black  as 
the  political,  which  is  gloomy  enough,  notwithstanding  the 
fact  that  the  second  reading  of  the  new  Military  Service  Hill 
was  carried  by  a  majority  of  223  in  a  House  of  423.  It  is, 
indeed,  beyond  measure  horrible,  this  daily  »tory  of  the  naurder 
going  on  in  France  and  Flanders,  and  what  mak€s  it  the 
more  agonising  for  us  is  the  reaippearance  of  names  made 
familiar  in  the  early  years  of  the  war  by  our  heroic  and 
succcssiful  resistance  to  the  enemy's  assaults,  names  like  Neuve 
Chapelle,  La  Bassee,  Givcnchy,  Messines,  even,  and  Ploeg- 
steert.  The  war  is  drifting  northwards  into  the  Ypres  cock- 
pit, and,  as  we  write,  the  Germans  seem  to  be  about  to  cut 
off  Armentieres,  and  may  succeed  in  sweeping  across  the  Lys 
to  join  hands  with  other  itioops  working  southward  from 
Hoperinge  or  Messines.  All  lalong  the  liritish  front,  in  fact, 
the  fighting  has  become  strenuous  and  insistent,  so  that  all  our 
energies  have  to  be  constantly  oxercised  in  repelling  assaults. 
Is  the  enemy  really  going  to  succeed,  then,  and  win  out  to 
the  ocean,  at  the  end  of  the  long  day  of  warfare?  Is  General 
Foch  boasting  without  reason  when  he  tells  the  Allies  that  we 
shall  be  in  the  end  victorious?  We  think  not,  and  regret  that 
the  nneasinesis  of  the  country  is  deepened  by  the  way  our 
picturesque  wax  correspondents  write  and  by  the  theorisings  of 
sj  many  amongst  our  military  critics.  These  last,  for  ex- 
ample, keep  insistently  warning  us  that  we  have  lost  "Ihe 
initiative "  in  the  campaign,  which  has  passed  over  to  the 
Germans,  and  that  it  may  cost  us  an  immense  effort  to  regain 
the  supremacy  or  freedom  of  manoeuvre.  Surely  this  sort  of 
assertion  leaves  out  of  account  altogether  the  dominating  con- 
dition in  the  fighting,  viz.,  that  it  is  a  siege  we  are  engaged 
in.  The  mere  fact  that  only  on  the  Eastern  line  of  cixcum- 
valation  the  Germans  have  broken  through  and  reached 
.s.ources  of  food  supply  that  should  have  been  denied  to  them, 
does  not  esscnitially  alter  their  position  as  besieged  in  the 
West,  still  less  modify  it  on  the  seas.  Germany  cannot  obtain 
a  real  and  victory-indncing  "  initiative "  in  this  Western 
struggle  unless  she  breaks  through,  not  only  the  barrier  of 
the  Allied  armies,  but  the  blockade  of  the  ocean.  It  would  be 
a  disaster  were  our  lines  on  land  to  be  broken  through,  our 
armies  rolled  up  and  put  ovit  of  action,  an  unspeakably  ruinous 
disaster ;  but  it  need  not  necessarily  be  a  final  victory  for  the 
(jcrmans— could  not  be  so,  with  America  standing  by  us  in 
the  struggle  at  sea  and  in  the  unyielding  defence  of  whatever 
positions  we  continue  to  hold  in  Franee  and  Flanders.  At 
the  very  worst,  we  could  hold  on  and  endure  until  the  Prus- 
sian aggressor  was  exhausted.  The  German  so-called  ''  initia- 
tive "  is  but  the  expression  of  the  beleaguered's  gathering 
desipaii. 

We  see  no  danger  of  irretrievable  disaster  on  land.  Sir 
Henry  Wdlson  has  no  doubt  been  unfortunate  in  the  events 
which  have  followed  in  rapid  succession  his  supercession  of 
Sir  William  Robertson,  but  we  are  not  called  upon  to  blame 
either  him  nor  any  general  for  the  misfortunes  that  have  be- 
fallen u.s  in  this  last  furious  onslaught  of  the  wild  boars  at 
bay.  Sorties  are  to  be  expected  in  a  siege,  and  the  besieged 
were  stimulated  by  their  domestic  miseries  to  exercise  their 
utmost  ingenuity  in  sio  arranging  their  blows  as  to  strike  most 
overpoweringly  at  the  weakest  points  in  the  lines  of  invest- 
ment. They  did  so  when  they  began  the  battle  for  Amiens 
on  the  21st  of  last  month,  ;ind  they  have  done  so  again  this 
week,  when  they  gathered  their  masses  in  the  North,  to  be 
flung  against  our  Portuguese  Ally  in  the  hope  that  they  might 
break  our  line  at  a  douibltful  .spot  and  disorganise  the  troops, 
Portuguese  and  British,  engaged  in  keeping  them  in.  And 
they  have  been  disappointed  in  both  these  sallies,  because 
neither  goal  has  been  reached.  They  have  not  broken  the 
British  lines  at  any  point,  although  they  have  bent  them 
back  in  several  places.  All  the  resources  which  a  feverishly 
demoniac  ingenuity  has  invented  and  elaborated  for  the  pur- 
poses of  wholesale  slaughter  have  .been  brought  up  to  shower 
death  upon  us — 60,000  gas  shells  alone  are  estimated  to  have 
been  flung  over  the  Portuguese  lines  and  ours  before  this 
latest  effort  to  re-open  the  road  to  Calais — and  all  the  attempts 
have  failed,  in  spite  of  the  claim  that  it  led  to  the  capture  of 
6,000  pTi«)ners  and  100  of  our  guns  as  result  of  the  drive 
upon  Hethune.     The  check  is  vexatious,  but  it  is  not  a  defeat. 

The  efforts  of  the  Prussians  will  be  renewed,  we  may  be 
sure,  and  continued  as  long  as  pawns  can  be  found  acquiescent 
in  being  sent  forward  to  fight.  It  is  of  the  essence  of  a 
siege  to  develop  continual  sorties  in  order  to  break  up  the 
enemy  and  set  the  beleaguered  free.  The  battle  may  be  re- 
sumed in  the  South  on  the  .Somme,  in  the  hope  that  the  on- 
slaught further  north  may  have  made  us  shift  our  reserves. 
Or  it  may  break  out  at  some  intermediate  point,  or  a  thrust 
from  Belgium  may  once  mere  be  made  against  Ypres  or  the 
Belgian  lines  near  the  sea.  Anything  and  everything  is  to  be 
expected  now,  because  the  besieged  Germans  are  goaded  by 
the    prospe>"t    of    famine    to    desperation.        Not    merely    does 


hunger  threaten  the  populations  of  both  Central  Empires,  but 
their  resources  of  all  descriptions  are  exhausted,  suid  the  dis- 
tension of  credit  which  the  war  waste  has  induced  already 
exceeds  anything  that  we  can  imagine.  Most  German  indus- 
tries are  ruined,  German  manhood  is  being  destroyed  with 
frantic  profusion,  and  machinery,  railroads,  every  instrument 
of  civilisation  they  possessed  before  the  war  have  deteriorated 
to  an  extent  which  makes  perseverance  in  fighting  as  well  as 
every  kind  of  internal  movement  increasingly  difficult. 

We  may  judge  to  some  degree  the  straits  into  which  the 
IlohenzoUern  Empire  has  fallen  by  such  communiques  as  that 
one  setting  forth  the  immense  booty  Germany  has  captured  in 
the  Somme  attacks.  It  is  explained  that  the  cost  of  the  array 
and  its  feeding  have  lx>th  been  much  mitigated  for  the  German 
people  by  the  enormous  quantities  of  clothing  and  food  left  by 
us  in  our  retreat.  Probably  there  is  too  much  truth  in  the 
enumeration  with  which  this  intimation  is  fortified,  because 
our  habits  of  lavishness  in  provisioning  the  troops  exceeds  by 
many  degrees  the  wisdom  and  vigilance  with  which  the  accu- 
mulations of  stores  are  guarded  ;  but  at  the  very  highest  com- 
putation supplies  of  sufficient  magnitude  to  feed  and  clothe 
more  than  a  small  number  of  the  enemy's  troops  for  more  than 
a  very  few  weeks  cannot  have  been  left  to  be  seized.  So,  to 
the  Germans  the  encouraging,  and  to  the  Allies  the  pre- 
sumably discouraging,  additional  news  is  circulated  through 
Amstetdam  Fhat  supplies  amounting  to  a  million  tons  of  cereals 
and  fodder  have  been  arranged  with  the  Ukrainian  fk>vern- 
ment,  and  that  nearly  the  whole  of  this  quantity  will  be  de- 
livered by  July  next.  We  hope  the  Germans  will  feel  less 
hungry  on  reading  the  news,  for  there  are  no  such  quantities 
of  food  available  in   South-Western  Russia. 

Whatever  happens,  we  do  not  believe  that  the  populations 
in  either  empire,  least  of  all  the  population  of  the  Prussian 
despotism,  can  get  suflicient  food  to  stay  its  hunger  for  the 
whole  time  between  nov/  and  next  harvest.  Famine  is  to-day 
brooding  over  the  populations  of  both  Empires,  and  the  fact 
that  it  is  so  would  alone  be  sufficient  to  account  for  the  frantic 
persistence  with  which  the  Prussian  high  command  is  sending 
forward  its  miserable  pawns  to  the  sacrifice.  Their  destruc- 
tion at  least  by  so  much  reduces  the  pressure  on  what  is  left  of 
the  food  stocks. 

Ghastly  accounts  of  the  numberless  trains  of  wounded  that 
are  being  sent  back  to  the  rear  in  wagons  of  all  descriptions, 
with  the  blood  from  unattended  wounds  dropping  from  the 
trucks,  may  have  an  element  of  sensational  descriptive  writing 
in  them,  just  as  the  statement  originating  in  a  Paris  news- 
paper that  the  British  Army  has  reckoned  that  250,000  dead 
Germans  lie  in  front  of  its  lines  east  of  Amiens  in  the  Somme 
morass,  is  beyond  question  an  exaggeration,  because  it  would 
mean  losses  of  nearly  a  million  in  killed  and  wounded  together. 
None  the  less  is  it  certain  that  the  toll  the  Allies  take  on  the 
assaulting  foe  has  been,  and  continues  to  be,  gigantic  beyond 
anything  that  has  been  seen  before  the  present  war,  and  must 
continue  to  be  gigantic  as  long  as  the  German  generals  are 
obliged  to  drive  their  troops  to  the  a.ssault  in  dense  masses 
because  men  of  individual  courage  and  resource  are  not  to  be 
found  in  their  armies.  Here,  also,  we  have  good  hope  that 
the  foundation  for  a  world's  peace  is  being  "  well  and  truly 
laid."  .■\s  preliminary  the  p.an-Germanic  insanity  has  to  be 
bled  out  of  a  people  gone  daft. 

As  one's  eye  ranges  over  the  immense  array  embraced  in 
this  world-staggering  outbreak  of  barbarism  in  a  frenzy,  one 
might  be  moved  to  doubt,  if  not  to  despair.  For,  checked, 
bafiled  as  they  may  be  in  the  West,  the  Germans  seem  nearly 
everywhere  else  to  be  either  holding  their  own  or  to  be  march- 
ing from  triumph  to  triumph.  They  and  the  Turks  are  beaten 
back  by  us  in  Palestine  and  Mesopotamia,  but  they  are  over- 
running Finland,  and  reaching  out  to  the  Arctic  Sea,  bit  by 
bit  absorbing  Russia — and  apparently  meeting  with  no  active 
resistance  there — sitting  on  the  neck  of  Rumania,  making  pro- 
gress in  securing  the  mastery  of  the  Black  Sea,  and  slowly 
working  out  a  new  dismemberment  of  Poland  to  their  own 
profit.  Working  along  the  lines  skirting  the  south-western 
shores  of  the  Black  Sea,  the  massacring,  infamous  Turk  and 
his  Gennan  masters  are  laying  siege  to  Batum,  and  if  driven 
out  of  Erzeruin  by  the  valiant  Armenians  are  again  master  of 
Van,  looking  forward  presumably  to  a  tri,umphant  reinvasion  of 
Persia.  In  the  Balkan  Peninsula  it  looks  stalemate.  Bul- 
garia, with  German  assistance,  continues  to  hold  her  lines 
against  the  Allies,  and  even  on  the  Alpine  frontier  of  Italy  no 
progress  is  made  in  flinging  back  the  ruthless  foe.  Renewed 
assaults  intended  to  open  the  way  to  the  Italian  plains  are 
said  to  be  getting  ready  for  launching  along  the  Trentino 
front.  A  perfectly  insane  activity  is  thus  revealed  to  the  eye 
all  over  the  arena,  and  at  many  spots  the  legions  of  hell  seem 
to  be  prevailing.  But  their  ultimate  defeat  should  be  all  the 
more  thorough  and  irretrievable  for  that. 

Need  this  sight,  therefore,  depress  us?  Can  history  furnish 
any  example  of  ultimate  triumph  resulting  from  similar  dis- 
plays of  immeasur.ible  covetousness  at  first  successful  ?  We 
can  recall  no  instance  that  would  serve.  And  even  if  the 
Prussian  did  succeed,  do  the  circumstances  of  Germany  war- 
rant the  belief  that  this  assassin's  triumph  could  endure,  could 
be  maintained  without  exhausting  the  vitality  of  the  race  o- 
races  by  which  it  had  been  accomplished?  We  do  not  believe 
it,  and  still  hold  fast  to  our  faith  that  in  all  this  widespread 
activity,  as  in  all  the  plotting,  intriguing,  and  spying,  .Ger- 
many is  preparing  the  way  for  the  utter  ruin  of  her  Prussiarr 
Empire,  and  in  doing  so  is.  without  knowing  it  or  willing 
it,  contributing  by  no  means  feebly  or  ineffecfively  to  that 
emancipation  of  mankind  from   the  domination   of   a   military 


1 


April  13,   1918. 


Ube  Jnvestors'  TReview* 


363 


caste  and  from  the  stifling  and  impoverishing  supremacy  of 
that  caste  entrenched  behind  feudal  laws  and  customs  which 
must  conic  if  the  world  is  to  have  its  "  thousand  years  of 
peace." 

Again  last  week  our  losses  from  submarines  were  small. 
Only  iour  ships  of  1,600  tons  gross  or  over  were  sunk  out  of 
a  total  of  5,oji)  which  entered  and  left  our  ports,  i.e.,  234 
more  than  in  the  previous  week — and  of  vessels  below  1,600 
tons,  only  two  were  sunk.  Two  fishing  vessels  were  also 
returned  as  having  been  sunk,  but  they  fall  to  the  debit  of 
the  last  week  in  March,  and  of  the  11  ships  unsuccessfully 
attacked,  two  were  also  ascribable  to  that  week.  Thus  in 
reality  only  si.x  liritish  ships  were  sunk  last  week,  the  smallest 
number  since  that  week  in  November  when  the  Trime  Minister 
bragged  in  triumph  over  "only  one  big  vessel  sunk."  We 
hope  this  diminution  will  continue,  and  the  longer  days  un- 
doubtedly help  us  in  our  defence,  but  we  must  not  settle 
down  with  Georgian  or  innate  complacency,  and  imagine  that 
the  work  of  our  Navy  is  nearing  an  end.  That  end  is  not  near 
at  hand  by  a  long  wav. 


The  most  satisfactory  shipping  news  of  the  week,  apart  from 
the  smaller  destruction  of  merchant  ships  and  their  cargo,  is 
the  statement"  that,  thanks  partly  to  the  wi.se  efficiency  with  which 
the  crisis  is  being  handled,  the  United  States  has  now  2,762,605 
tons  of  shipping  in  the  Atlantic  service.  This  shipping,  more- 
over, is  so  well  handled  that  the  efficiency  of  the  tonnage  has 
been  increased  by  20  per  cent.,  the  equivalent  of  400,000  tons, 
and  there  are  still  471,000  tons  of  Dutch  ships  to  be  put  in 
use  as  soon  as  thej.  are  ready  and  crews  can  be  provided  for 
them.  By  the  end  of  May,  the  Times  Washington  correspon- 
dent reports,  it  is  believed  that  American-controlled  Trans- 
Atlantic  tonnage  will  reach  3,500,000.  That,  coupled  with  our 
own  larger  shipping  output,  gives  us  much  comfort, 
strengthens  the  belief  that  we  shall  win  through  all  right. 
Only  there  is  perhaps  four  months  of  strenuous  fighting  before 
us,  and  even  then  not  the  end. 

Last  week  the  French  lost  two  ships  of  over  1,600  tons  by 
submarine  attack,  but  no  smaller  vessels.  One  ship  was  unsuc- 
cessfully attacked.  The  number  of  arrivals  and  sailings  in 
French  ports  each  exceeded   1,000. 


HONGKONG  AND  SHANGHAI  BANKING  CORPORATION. 

One  Hundred  and  Second  Report  of  the  Court  of  Directors 

To  the  ORDINARY  YEARLY  GENERAL  MEETING  OF  SHAREHOLDERS, 
Held  at    the    City    Hall,    Hongkong,    on     Saturday,    the    23rd     February,     1918. 


TO  THE  PROPRIETORS  OF  THE  HONGKONG  AND  SHANGHAI 
BANKING  CORPORATION. 

Gentlehen, — The  Directors  have  now  to  submit  to  you  a  General  Statement 
of  the  affairs  of  the  Bank,  and  Balance-sheet  for  the  year  ending 
3l8t  December,  1917. 

The  net  profits  for  that  period,  including  $3,166,578.81,  balance  brought 
forward  from  last  account,  after  paying  all  charges,  deducting  interest  paid  and 
due,  and  making  provision  for  bad  and  doubtful  accounts  and  contingencies, 
amount  to  $9,820,180.33. 

The  Direetors  recommend  the  transfer  of  $1,000,000  from  the  Profit  and  Loss 
Acoouiit  to  credit  of  the  Silver  Beserve  Fund,  which  Fund  will  then  stand  at 
419,500,000. 

They  also  recommend  writing  off  Bank  Premises  Account  the  sum  of 
81,000,000. 

After  maliing  these  transfers,  deducting  the  Interim  Dividend  of  £2  3s.,  per 
share,  paid  on  IJth  August  last,  viz.,  £258,000  at  2a.  63d.  =  $2,046,S4!.15,  and 
Remuneration  to  Directors  there  remains  for  appropriation  $5,74i,238.18,  out  of 
which  the  Directors  recommend  the  payment  of  a  final  Dividend  of  Two  Pounds 
and  Three  Shillings  Sterling  per  Share,  viz.,  £258,000,  and   a  Bonus  of  One 

ABSTRACT    OF    ASSETS    AND 

Liabilities.  S 

Paid-up  Capital        

Sterling  Reserve  Fund  £1,500,000  at  ex.  2s.. . 

Silver  Reserve  Fund         

Marine  Insurance  Account        

Notes  in  Circulation: — 

(Authorised  Issue  against  Securities  and  Coin 

deposited  with  the  Crown  Agents  for  the 

Colonies    and    their  Trustees) 

Additional  Issue    authorised    by    Hongkong 

Ordinances  against  Coin  lodged   with  the 

Hongkong  Government  

Current  Accounts  : — 

Silver ■  . . 

Gold,  £5,373,341  15s.  =        

Fixed  Deposits : — 

Silver $61,160,315.67 

Gold,  £4,468,464  123.  3d.  = 29,700,660.06 

Bills  pavtible  (including  Call  Loans  and  Short 
Sight  Drawings  on  London  Office)        . .        . .      $17,049,392.55 

Drafts  on  London  Bankers 333,669.62 

Acceptances  on  Account  of  Constituents 

Profit  and  Loss  Account 

Liability   on    Bills    of   Exchange    re-discounted,   £8,699,715 
17s.  5a.,  of  which  £6,419,800  3b.  2d.  have  since  run  off. 


15,000,000.00 

15,000,000.00 

18,500,000.00 

250,000.00 


$15,000,000.00 


9,920,907.00 

$187,443,393.63 
35,723,210.35 


—24,920,907.00 
-223,166,607.03 
-90,860,975.73 


-17,383,062.17 
6,085,624.55 
7,773,238.18 


Pound   Sterling  per    share,    viz.,    £120,000,    amounting    in    all  to    £378,000 
which  at  38.,  the  rate  of  the  day,  will  absorb  $2,520,000. 
The  Balance  $3,223,238.18  to  be  carried  to  New  Profit  and  LosB  Aocotmt. 

DlRECroRS. 

The  Houourable  Mr.  P.  H.  Holyoak  has  been  elected  Chairman  for  th« 
year  1918,  and  Mr.  O.  T.  M.  Edkins  Deputy  Chairman. 

The  Honourable  Mr.  C.  E.  Antos,  the  Honourable  Mr.  E.  Shillim  and  Mr. 
J.  A.  Plummeb  having  resigned  their  seats  on  leaving  the  Colony,  the 
Honourable  Mr.  David  Landale,  Mr.  A.  H.  Comptos,  and  Mr.  F.  C.  Butcher 
were  invited  to  fill  the  vacancies.  These  appointments  require  confirmation  at 
this  meeting. 

Mr.  Stanley  H.  Dodweli.  and  Mr.  G.  T.  M.  Edkins  retire  in  rotation,  but, 
being  eligible  for  re-election,  offer  themselves  accordingly. 
Auditors. 

The  accounts  have  been  audited  by  Mr.  F.  Maitland  and  Mr.  E.  A.  M. 
Williams,  who  oflfer  themselves  for  re-eleotion. 

STANLEY  H.  DODWELL, 

Hongkong,  13th  February,  1918.  Chairman. 

LIABILITIES,   31st   December,   1917. 

Assets.  • 

Cash  (including  $15,500,000  Coin  lodged  with  the  Hongkong 
Government    against     authorised     and  /  or    excess    Note 

Circulation)        

Bullion  in  Hand  and  in  Transit  

Indian  Government  4%  Conversion  Loan 

British  Government  Colonial  and  other  Securities 
Sterling  Reserve  Fund  Investments,  viz. : — 
£1,578,947  7s.  5d.  5%  War  Loan,  1629/47,  at  95  =  £1,500,000  at 

ex.  2«.  

Bills  Discounted,  Loans  and  Credits 

Bills  Receivable 146,129,894.55 

Liabilities  of  Constituents  for  acceptances,  per  contra  . .        . .  6,085,624.55 

Bank  Premises         7,115,946.57 


84,132,051.40 
7,590,795.49 
2,369,053.95 

18,909,905.47 


15,000,000.00 
131,£07,145.68 


Dr. 


$418,910,414.66 
GENERAL    PROFIT    AND    LOSS    ACCOUNT,    3l9t    December,    1917. 


$418,940,414.66 


Cb. 


To  Interim  Dividend : 

Paid  on  13th  August,  IBl',  £2  38.  per  Share  on  120,000 
Shares=£258,00Oat  2/6J 

Remuneration  to  Directors 

„  Final  Dividend  : — 

£2    3s.  per  Share  on  120,000 

Shares  =  £258,000  at  3/-        -       $1,720,000.00 

Bonus  of    £1  per  Share  on 

120,000  Shares  =  £120,000  at 

3/-  =  800,000.00   —$2,520,000.00 

„  Transfer  to  Silver  Reserve  Fund  ..  ..  1,000,000.00 
„  Transfer  to  Bank  Premises  Account. .  . .  1,000,000  OO 
„  Balance  forward  to  next  year 3,223,238.18 


$2,046,942  15 
$30,000.00 


—7,745,238.18 
$9,820,180  33 


By  Balance  of  Undivided    Profits,   3Ist   Deo., 

1916        

,,  Amount  of  Net  Profits  for  the  Year  ending 
31st  December,  1917,  after  making  provi- 
sion for  bad  and  doubtful  debts  and  con- 
tingencies, deducting  all  Expenses  and 
Interest  paid  and  due 


$3,166,578.85 


6,653,601.48     -$9,820,18033 


To  Balance  £1,500,000  at  ex.  2s 

(invested  in  5  per  cent.  War  Loan  1929/1947) 


STERLING    RESERVE    FUND. 
$15,000,000.00    I    By  Balance  3lBt  December,  1916,  £1,500,000  at  ex,  Zs. 


$15,000,000.00 


$9,820,180.33 


$15,a0,00}.00 


$15,000,000.00 


To  Balanoe  . 


SILVER     RESERVE     FUND. 


819,500,000.00 


$19,500,000.00 


We  have  compared  the  above  Statement  with  the  Books,  Vouchers,  and 
Securities  at  the  Head  Office,  and  with  the  Returns  from  the  various  liranohes 
and  Agencies  (with  the  exception  of  the  Hambuig  Office,  from  which  no  State- 
ment of  Accounts  has  been  receive.l  since  IjI-1),  and  have  found  the  sam*  to  be 
correct.  F.  MAITL\ND, 

Hongkong,  13th  February,  1913.    B.  A.  M.  WILLIAMS,  a.s.a.a.. 


'  Auditors. 


By  Balance  31st  December,  1916 
,,  Transfer  from  Profit  and  Loss  Account 


$18,500,000.00 
1,000,000.00 

$19,500,0000)0 


N.  J.  STABB,  Chief  Manager. 
H.  C.  8ANDF0RD, 

Acting  Chief  Accountant. 


STANLEY  H.  DODWELL, 
P.  H.  HOLYOAK, 
E.  V,  D.  PARR, 


r  Direotorti 


364 


Zbc  Jnvestora'  IReview. 


April  13,   1918. 


NORWICH  UNION 

MUTUAL     LIFE    OFFICE 

because  of   its 
AGE  —  MAGNITUDE  —  RESERVE       STRENGTH 
—  PROFIT    YIELD  —  ALERTNESS,    &    ECONOMY 

The  Outstanding 
British 
Life  Office 

Wril4    or  Hrosfuctus  to  the  Secretary, 

NORWICH    UNION    LIFE    OFFICE,    NORWICH, 

or  to  any  Branch  Office  of  the  Society. 


THE  LIVERPOOL   &  LONDON  &  GLOBE 

INSURANCE    CO.,    LTD. 

FIRE.        LIFE.        ACCIDENT.        MARINE. 
Total  Assets  exceed    -       .       .    £14,800,000 

-    £86,000,000 


Total  Claims  Paid  over 


Head  Office  I 
1,  Dale  Street,  Liverpool. 


London  Chief  Office: 
1,  Cornhill,   E.G.  3. 


Hbe  .investors'  IRepiew. 

Money    and   Credit    Notes. 

Bank  Rate  5  per  Cent.   (Reduced  from  5 J  percent,  on 
Thursday,  April  5,  1917.) 

Norfolk  House,  Friday  Evening. 

Pronounced  ease  has  existed  in  the  Money  Market  all  this 
week.  Seven-day  money  is  still  quoted  nominally  at  3^  per 
cent.,  but  call  money  has  gone  down  to  3  per  cent.,  and  often 
to  2^  per  cent.,  and  sometimes  in  the  afternoon  touched  2  per 
cent.  Discount  is  also  weak,  although  there  is  perhaps  no 
quctable  change  in  rates.  June  bills,  however,  were  bought  in 
the  beginning  of  the  week  at  3^,  and  April  bills  at  3^  per 
cent.,  so  that  the  official  quotation,  as  we  may  call  it,  of 
3%  per  cent,  for  60-day  paper  is  often  too  ornamental.  As  to 
the  causes  of  the  ease,  they  must  be  put  down  to  several  influ- 
ences, the  dominating  one  probably  being  hesitation  in  busi- 
ness. A  sort  of  hush  has  come  over  the  mercantile  world 
while  this  fearful  conflict  rages  in  France  and  Flanders,  and 
until  the  signs  of  the  Allied  ascendancy  become  more  marked 
than  they  are  at  present  the  Money  Market  is  likely  to  remain 
inert. 

Because  of  the  prevailing  torpor,  the  decline  of  _;^ 1 8,079,000 
shown  by  the  Bank  return  in  other  deposits  passed  without 
having  the  least  effect  on  the  value  of  floating  credits.  The 
market  was  used  partly  to  reduce  other  securities  by 
^11,417,000,  partly  to  increase  the  public  deposits  by 
/3, 790,000,  and  also  to  meet  the  draft  upon  the  reserve,  which 
IS  down  ^^875,000  to  ;£'3i, 005,000.  Coin  and  bullion  to  the 
value  of  /<)93,ooo  has  been  taken  away,  but  the  note  circula- 
tion has  fallen  off  ^^i  18,000,  so  that  the  reserve  is  reduced  only 
by  the  amount  named.  The  proportion  of  the  reserve  to  the  lia- 
bilities, notwithstanding  this  reduction,  is  about  i  up  to  18 
per  cent,  becau.se  of  the  large  reduction  in  the  liabilities  on 
other   deposits. 

Sir  Edward  Holden  may  be  said  to  have  routed  the  doubters 
in  the  discussion  on  bank  amalgamations  at  the  annual  meet- 
ing of  the  Associated  Thambers  of  Commerce.  The  facts  lie 
mentioned,  illustrative  of  the  help  big  banks  give  to  small  and 
to  the  Government,  went  far  to  dissipate  any  doubts  enter- 
tained on  the  subject,  and  after  giving  them,  Sir  Edward 
declared,  "  we  shall  all  have  to  buckle  to,  and  it  will  be  a 
question  of  the  banks  doing  their  utmost  to  assist  you  to  pro- 
duce,  and   for   you   to   increase  your   exports   as  much   as  you 

possibly  can Go  on  and  manufacture  stocks  like  mad," 

he  said,  "  and  have  these  stocks  ready  for  the  time  wh"n 
the  war  is  over,  so  that  you  can  begin  to  export  them  and  meet 
the  exchange  through  that  medium  instead  of  gold."  There  is 
wisdom  in  this  advice,  but  we  hope  manufacturers  will  n.it  go 
too  fast  or  too  far,  even  though  they  might  soon  be  con- 
vinced of  the  necessity  for  big  banks  with  massive  resources 
capable  of  helping  them  to  carry  unwieldy  stocks  they  could 
not  sell.     Who  is  to  buy.  Sir  Edward,  when  the  war  is  over? 

At  the  meeting  held  this  week  of  the  Briti.sh  Italian  Corpora- 
tion, Ltd.,  that  new  State-patronised  bank  started  less  than  two 
years  ago,  and  whose  "  twin  "  is  in  Italy— we  might  call  it 
a  liaison  bank,  a  bank  that  will  link  up  and  give  assistance  to 
other  banks  and  to  industries  abroad  after  a  fashion  never 
hitherto  systematically  organised  by  any  British  company- 
many  cheering  statements  were  made  by  the  chairman,  Mr. 
S.  W.  Beaumont  Pease.  The  bank  has  been  so  successful  for 
the  past,  its  first  completed,  year,  that  it  has  been  able  to 
give  the  shareholders  a  dividend  of  5  per  cent.,  and  the  pro- 


cess of  linking  uo  with  other  banks  in  helpful  partnership  for 
industrial  expansion  has  gone  on  during  the  year,  as  wit- 
nessed by  the  fact  that  the  Standard  Hank  of  South  Africa, 
the  Bank  of  Australasia,  and  the  Hank  of  West  Africa  have  all 
become  numbered  amongst  its  shareholders.  It  has  got  an  ex- 
cellent  and  experienced  Italian  as  general  manager,  more- 
over, in  Commendatore  George  Manzi  F^,  who  has  come  to 
it  from  the  Credito  Italiano. 

Changes  have  been  taking  place  in  the  staff  of  the  Chartered 
Bank  of  India,  Australia,  and  China,  and  we  doubt  if  we 
should  know  a  single  member  of  its  London  staff  if  we  were 
again  to  visit  its  office.  Once  on  a  time  we  knew  them  all. 
The  meeting  for  the  past  year,  presided  over  by  Sir  Montagu 
Cornish  Turner,  the  chairman,  was'chiefly  remarkable  for 
the  recital  of  the  changes  in  the  staff  occasioned  by  the  un- 
timely and  lamented  death  of  Mr.  Thomas  Eraser,  whoig  we 
remember  well  as  a  courteous  and  able  banker,  and  through 
ether  causes.  An  old  director,  for  example.  Sir  Henry  Cun- 
ningham, has  resigned  on  the  ground  of  his  health,  and  has 
been  replaced  by  a  well-known  Calcutta  merchant,  Sir  Duncan 
Carmichael.  But  whatever  its  personnel,  the  bank  goes  on 
from  strength  to  strength,  and  notwithstanding  the  many 
difliculties  caused  to  business  by  the  confusion  of  the  war,  it 
did  very  well  last  year,  as  our  analysis  of  the  report  showed. 
Trade  with  the  East,  as  everywhere,  is  now  hampered  by  the 
scarcity  of  tonnage,  but,  time  given,  that  difficulty  will  be  sur- 
mounted, and  in  India  itself  the  crop  prospects  are  "most 
satisfactory,"  Sir  Montagu  said.  In  the  Punjab,  the  area 
under  cultivation  has  increased,  the  needed  rain  has  fallen, 
and  bumper  crops  are  looked  for.  India  as  a  whole  is  there- 
fore in  a  state  of  great  prosperity,  which  is  all  good  news. 

It  is  now  regarded  as  certain  that  increased  taxation  will  be 
proposed  by  the  Chancellor  in  his  Budget  speech.  Not  only  is 
an  increase  in  the  income-tax  fully  expected,  but  also  an 
addition  to  the  death  duties.  There  is  likely  to  be  much 
less  opposition  to  the  latter  than  to  the  former,  for  the  death 
duties  have  not  been  altered  since  the  war  began.  Possibly 
some  relief  may  be  given  to  those  with  small  incomes  in  the 
way  of  abatements,  but  apparently  no  alteration  in  the  excess 
profits  duty  is  expected.  With  regard  to  indirect  taxation,  a 
general  increase  is  anticipated,  partly  for  revenue  purposes 
and  partly  in  order  to  check  expenditure  on  superfluous  goods. 
In  this  connection  it  is  forecasted  that  the  Chancellor  may  pro- 
pose taxation  on  expenditure  on  the  rather  novel  lines  adopted 
in  January  by  the  French  Government.  Such  taxation,  which 
would  be  aimed  at  articles  of  luxury,  mainly  consumed  by 
women,  would  be  welcomed  in  the  City,  where  the  orgy  of 
luxurious  expenditure  in  various  parts  of  the  country  indulged 
in  by  those  making  excess  incomes  over  the  war  is  regarded  as 
little  short  of  .scandalous. 

The  India  Council  has  decided  to  raise  the  price  of  Council 
drafts  on  India  one  pennj-  to  is.  6d.  for  immediate  transfers, 
and  to  IS.  5  29-32d.  for  deferred  tran.sfers  and  bills.  This 
advance  is  not  the  result  of  the  rise  in  silver,  for  the  price 
of  the  latter  stands  at  the  same  level  as  it  did  in  August 
last,  when  the  rates  for  Council  drafts  were  increased  by  ^d. 
to  IS.  5d.  and  is.  4  29-32d.  respectively.  The  price  of  silver 
has  no  connection  with  the  price  of  Council  drafts  now  owing 
to  the  prohibition  on  private  imports  of  silver  into  India ; 
consequently  the  latter  cannot  be  used  as  a  check  to  the  price 
of  drafts  as  an  exchange  operation.  The  cause  of  the  advance 
is  really  the  difficulty  of  providing  enough  rupees  to  meet 
the  trade  demand.  The  rise  is  equivalent  to  5  per  cent., 
which  means  that  our  imports  of  Indian  products  will  cost 
us  so  much  more,  while  the  Indian  importer  will  pay  so  much 
less  for  the  goods  he  buys  from  Lancashire.  Indian  Rupee 
loans  have  advamed  as  the  rise  in  the  draft  rate  increases  the 
yield   by   6   per   cent. 

The  principal  event  in  the  foreign  exchange  market  has  been 
the  weakness  of  sterling  in  Spain.  The  Madrid  exchange  has 
fallen  52  points  to  the  record  low  level  of  17.93%  pesetas,  and 
it  may  fall  still  lower  pending  the  operation  of  the  credits 
arranged  between  French  and  Spanish  banks.  The  Swiss 
exchange  has  also  fallen  35  points  to  20.05  francs  to  the  pound. 
A  system  of  monthly  credits,  of  between  10  and  12  million 
fiancs,  has  been  arranged  for  between  Great  Britain  and 
Switzerland.^  These  credits  are  to  be  secured  by  collateral, 
and  will  vary  according  to  the  tonnage  placed  at  the  disposal 
of  Switzerland.  The  scheme  is  on  much  the  same  lines  as  the 
arrangements  made  last  autumn  for  Swiss  credits  for  France. 
Dutch  florins  are  more  expensive,  the  pound  sterling  now  being 
worth  only  9.99H  florins,  or  13  points  less  than  last  week. 
Stockholm  has  fallen  a  further  six  points  to  13.94  kr.,  but 
Christiania  at  14.94J4  kr..  amd  Copenhagen  at  15.25  kr.,  have 
moved  in  our  favour.  The  Paris  exchange  has"  improved  to 
25.1654  francs.  The  Uruguayan  exchange  has  moved  against 
us,  the  dollar  being  worth  64Vid.,  a  rise  cf  i%A. 

The  Landed  Banking  and  Loan  Co.  of  Hamilton.  Ontario. 
IS  prepared  to  issue  debentures  bearing  Jnterest  at  the  rate  of 
SVi  per  cent,  for  one  to  five  years.  Debentures  will  be  repay- 
able in  sterling  in  London  or  Edinburgh  at  the  dates  agreed 
c-\  and  interest  is  payable  half-yearly  on  May  ic  and  Novem- 
ber II.  As.sets  amount  to  about  ^^780.000,  and  there  is  a 
surplus  of  ^385, 700  over  liabilities.  Treasury  sanction  has 
been  obtained  for  the  issue,  and  the  agents  for  Great  Britain 
are   Messrs.    Macandrew,    Wright   and    Murray,    Edinburgh. 

Silver. 
Something  almost  sensational  has  taken  place  in  the   Silver 
market    this    week,    owing    to   the   news   that   a    Bill   has    been 
introduced  in  the  I'nited  States  Senate  to  provide  for  the  melt- 


April  13,  1918. 


Zbc  Jnveetors'  IReview. 


365 


Ung  of  $250,000,000  silver  dollars  into  bullion,  which 
!  will  be  repurchased  by  the  American  Treasury  at 
i-tt  per  OE.  This  is  the  scheme  mentioned  some  weeks  ago, 
fand  means  that  the  silver  dollar  is  to  be  screwed  up  to  its  old 
'.ratio  value  as  against  gold.  That  is  to  say,  the  silver  dollar 
fis  to  be  made  equivalent  to  the  gold  dollar  of  5od.  Naturally, 
[the  effect  of  such  a  change  could  not  fail  to  be  momentous 
'on  the  current  price  of  bar  silver.  This,  Mocatta's  circular 
tells  us,  wa.s  stagnant  for  the  first  three  days  of  this  week  at 
last  week's  quotation  of  45Kd.    per   oz.,   but   on   Thursday   the 


will 
Indian 


It 


probably 
Covernment 


price  jumped  id.  to  4()jid.  per  oz.,  and 
higher  still,  and  remain  higher,  for  the 
has  been  compelled  to  move  also,  and  has  raised  the  exchange 
value  of  its  rupee,  as  is  explained  below.  We  said  almost  at 
the  outset  of  the  war  that  the  world  would  probably  have  to 
fall  back  on  silver  as  its  principal  metallic  currency  for  some 
time  after  peace  came  back.  We  now  fear  lest  we  should 
have  to  be  thankful  if  able  to  get  silver.  From  Montagu's 
circular  we  learn  that  the  stock  of  silver  in  Bombay,  which 
was  1,300  bars  at  the  beginning  of  la.st  month,  is  now  ex- 
hausted. In  Shanghai  the  stock  has  risen  to  31,900  ozs.  in 
svcee  and  $14,700,000,  an  increase  of  1,925  ozs.  and  of  $800,000. 


Applications    for    the    Rs.  60,00,000    Indian    Council    drafts 

,  offered   on    Wednesday'    amounted    to   Rs.  2,19.55,000.     Of   these, 

iRs.  58,77,000    were    allotted     in     deferred     transfers,     and     Rs. 

,23,000    in    immediate   transfers.     Tenders    for    bills   and    de- 

Iferred  transfers  at  is.  4  29-32d..  and  for  immediate  transfers  at 

IS.    cd.,   received   about   27   per  cent. 


BANK    OF    ENGUND 

ACCOUNT  pursuant  to  the  Act  7  and  8  Vict., 

Week  ending  on  Wednesday.  April  10 

ISSUE    DEPARTMENT. 

£ 
,.    78,144,180 


cap.  ,^2, 
1918. 


for  the 


Notes  Issued 


Government  Debt,  • 
Other  Securities    .. 
Gold  Coin  and  BullioD 
Silver  Bullion 


Proprietors'  Ciplial 

Rest 

Pu'olio  Deposlts(includlng 
Exchequer,  Savings 
Banks,  Commissioners 
of  National  Debt,  and 
Dividend  Accounts)  ,. 

?ibec  Deposits 

ft^ven  Da;  and  other  Bills 


^78,144,180 

BANKING   DEPARTMENT. 
£ 


£ 
11,015,100 

7,434.900 
59,694,180 


£78,144,180 


14,553.000 
3,107,031 


40,077,734 

132,193,895 

11,580 


bated  April  ir,  1918. 


£i89>943.S40 


Government  Securities 
Other  Securities    .. 

Notes 30,263,475 

Gold  and  Silver  Coin      ..  741,990 


£ 
56,868,332 
102,069,443 


J.  G.  NAIRNE, 


£189,943,240 
Chief  Cashier. 


BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
Bith  the  previous  week,  and  also  the  totals  for  that  week  and  the 
porresponding  return  last  year. 


-ast  year, 
^prilii. 

April  3, 
igi3. 

April  10, 
igi8. 

Increase. 

Decrease . 

1    £ 

3,125.452 

50,123,837 

128,968,333 

30,678 

39,244,654 
83,307,951 
32,189,690 

Liabilities. 
Rest 

Pub.  Deposits  .. 
Oiher    do, 
7  Day  Bills       .. 

Assets. 
Gov.  Securities. 
Other       do. 
Total  Reserve.. 

NoteClrculalioD 
Coin  and  Bullion 
Proportion 
Banli  Rate 

3,550,624 

36,288,080 

150,272,776 

11,126 

59,308,032 
113,486.817 
31,880,757 

47,998,435 

61,429,192 

17-1  p.C. 

5        ., 

£ 

3,107,031 

40,077,734 

132,193.895 

11,580 

56,868,332 
102,069,443 
31,005,465 

£ 

47,880,705 
60,436,170 

18  p.C. 

5      „ 

£ 

3,789,654 

454 

Decrease. 

2,439,700 

11,417,374 

875,292 

18,522,474 

Increase. 
£ 

09  p.C 

£ 

443,593 

18,078,881 
Increase. 

; 

38,900,583 

54,690,888 

19-8  p.C. 

5  1, 

18,522,474 

Decrease. 

117,730 
993,022 

■ 

LONDON 

BANKERS' 

CLEARING. 

Date. 

Increase. 

Decrease. 

1918. 

1917. 

£ 

£ 

»nuary 

2,073,224,000 

1,865,125,000 

208,099,000 

february 

1,605,654,000 

1,779,524,000 

— 

173,870,000 

llarch       6 

464.845,000 

540,796,000 

75,951,000 

„       '3 

426,604,000 

312,109,000 

114,495,000 

,,         20 

419,381.000 

331,574,000 

87,807,000 

— 

27 

474,006,000 

308,346,000 

165,660,000 

— 

ipnl         3 

324,156,000 

389,347,000 

— 

65,191,000 

,,           10 

401,307,000 

253,111,003 

148,196,000 

— 

■oul 

6,189,177,000 

5,642,458,000 

724,257  000 

3I5,OI2,COO 

I                                    CURRENCY   NOTES. 

Return  of  Currency  Notes  for  the  week  ended  April  10,  1918. 

Issued. 

Cancelled. 

Outstanding. 

£1  notes          

los.  notes        

Nolecertificates 
Previous  total 

£ 

3,454,190 

1.391,001 

1,220,000 

876,126,831 

£ 

3,177,679 
1,366,064 

645,275,639 

168,200,597 
58,372,043 
25,800,000 

882,192,022 

649,819,382 

232,372,640 

PUBLIC   INCOME   AND    EXPENDITURE. 

(For 

6  days  ended  April  6.) 

Revbnur. 

Expenditure. 

Customs          

1,053,000 

National  Debt  Service       . .    2 

330,062 

Excise 

288,000 

Inter- St,   &c.,  on  War  Debtii, 

971,932 

Estate,  Sec,  Duties  .. 

501,000 

Development  &  Road  Impvt 

Stamps 

161.000 

Payments  to  Local  Taxation 
Other    Consolidated    Fund 

Land  Tax  and  House  Duty 

60,000 

Property  and  Income  Tax 

8,202,000 

Charges        



Excess  Profits  Tax  .. 

4,378,000 

Supply  Services       ..        ..43 
Bullion  Advances     . . 

,i6o,coo 

Land  Values • 

o5,ooo 

103,000 

Post  Office       

1,0  0,000 

For   Advance   for    Interest 

Crown  Lands 

— 

on  Exchequer  Bonds  un- 

Sundry Loans 

M  iscellaneous 

— 

der   Capital  Expenditure 

736,213 

(Money)  Act,  1004  . . 
For  Treasury  Bills    ..       ..I2fi 

— 

Bullion  advances  repaid    .. 

100,000 

,827,000 

ForTreasury  Bills  forSupplyio5.3 13,000 

Other  Debt  under  War  Loan 

S%  Exchequer  Beads,  1930 

4,  ICO, 000 

Acts,  1914.-16 

— 

5%  Exchequer  Bonds,  1922. . 

— 

For    War     Loan  and     Ex- 

6% Exchequer  Bonds,  1920. . 

— 

chequer      Bonds      under 

National  War  Bonds         .,■'■ 

i5,478,oco 

Section  61  of  Finance  Act, 

War  Savings  Certificates  . . 

1,400,000 

1916,  and  Section  34,  igi7 

•^ 

4%  War  Loan,  1929-1942  ( 
5%  War  Loan,  1929-1947!"  " 

Under   Telegraph    (Money) 

Act,  1913 

Under    Post    Office    (Lon- 

— 

Other  Debts  created   under 

War  Loan  Act,  1915,  and 

don)  Railway  Act,  1913.. 

^ 

Finance  Act,  igi6.. 

— 

Under  Military  Works  Acts 

— 

Telegraph  Money  Act,  1913 

— 

Under  Housing  Act,  1914.. 

— 

Under  Post  Office  Rly.  Act, 

Public    Buildings  Expendi- 

1913    .. 

_ 

ture  Act,  1903 

— 

Under  Military  Works  Act, 

Old  Sinking  Fund,  1907-8.. 

— 

1897-1903       

— 

Sinking  Fund,  igio-ii 

— 

Under  Public  Buildings    ,. 

— 

China  Indemnity 

— 

Under  Housnig  Act.. 

— 

East  Afri  can  Loan  . . 

— 

Repayment  of  Advance  for 

Cunard  Agreement  Act     .. 

— 

Interest     on     Exchequer 

Expenditure  Certificates   .. 

— 

Bonds           

— 

Depreciation  Fund  .. 

— 

China  Indemnity 

— 

Suez  Canal  Drawn  Shares. . 

— 

East    Africa    Loan    repay- 

Temp.    Advances     Repaid 

— 

ments 

_. 

Increase       in       Exchequer 

Suez  Canal  Drawn  Sbares.. 

— 

balances       

— 

Ways  and  Means  Advances 

43,000,000 

Decrease      in      Exchequer 

balances       

4,799.683 
66,479.014 

0 

;f  186.479-014 

^Excluding  sales  through  banks  which  have  not  yet  been  brought  to  accouni. 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.). 


Mar.  8,  1918. 

Mar.  I,  1918. 

Mar.  9,  1917. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

£ 

92,828,800 
70,917,030 
10,500,000 

£ 

92,323,000 
71,459.800 
10,500.000 

66,036,800 
41,112,200 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

i74,245.aoo 

179,340,400 

4.053.400 

174,282,800 

177,069,200 

4,113,8:^0 

107,149,000 

65,686,600 

465,000 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

357,639.600 
11,937.000 

355,465,800 

12,0S8.803 

173,300,600 
3,822,600 

Total  reserves  . . 

Bills  discounted— Members' . . 
Bills  bought  in  open  market 

369,576,600 
104,068,000 
63.59^.400 

367,554,600 
100,505,000 
5^,842,600 

177,123,200 
3,700,000 
21,772,005 

Total  bills  on  hand     .. 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec. 
All  other  earning  assets 

167,658,400 

14,450,800 

30,564,400 

8i2,8o« 

160,347,600 

15,541,000 

31,496,400 

736,000 

25,472,000 
5,825,200 
3,893,600 
3.417,400 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 

219,466,400 

1,222,600 

67.456,600 

208,121,000 

2,376,400 
73,837.000 

38,6oli,200 

628,600 

25,082,200 

Total  dedctns.  fm  gross  dep. 
5%Red.Fund  agFed.Res.bknts 
All  other  resources 

6:i,679,2oo 
107,400 
152,2x1 

76,2i3,4CO 
107,400 
159.200 

29,7io,Soo 

80,000 

1,249,200 

Total  resources 

637,9*^1.800 

652.155.6co 

243,771.400 

Capital  paid  in    .■ 

Surplus 

Government  deposits  . . 

Due  to  membrs— Res.  account 

Collection  items 

Other  deps  inc.  For.Govt  crdts 

14,724,800 
226,800 
11,241,600 
293,100,800 
43.397,200 
15,427,400 

14,680,200 
226,800 
30,156,200 
277,604,000 
43,606,203 
12,824,400 

11,205,600 

2,480,200 
144,097,600 
20,564,800 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn— nettliab. 
All  other  liab,  in  for  Gov  crdts 

363,167,000 

276,798,000 

1,600,000 

1,465,200 

364,190,800 

270,218,200 

1,599,800 

1,239,800 

167,142,600 
65,322,400 

100,800 

Total  liabilities 

654,981,800 

652,155,600 

243,771,400 

Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Ratio  of  gold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio    of    total    res.    to    nett 
deposit  and  F.R.    note  lia- 
bilities comb  aed 

59-2% 
66.3% 

62.6% 
64.7% 

60.5%    ' 
66.6% 

53.7% 
65.8% 

ro1:|| 

84.2% 
85.1% 

NEW   YORK  ASSOCIATED    BANKS   (dollar  at  4s.). 


April  6,1918. 


Loans       

Reserve  held  in  own  Vaults 
Reserve  held  in  Fed.  Res.  Bk. 
Cash  in  own  Vaults     . . 
Reserve  held  in  Other  Depos. 
Nett  Demand  Deposits 
Nett  Time  Deposits    . . 

Circulation         

Excess  Lawful  Reserve 


£ 

861,102,000 

3,438,000 

107,534,00c 

20,600,000 

1,788,000 

751.764,000 

37,094,000 

7,168,000 

12,746,000 


Mar. 30,  igi8 


867,370,000 

3,462,000 

103^88, coo 

20,596,000 

1,576,000 

748,040,000 

37,218,000 

7,136,000 

9,200,000 


Mar.23, 1918  April?,  1917 


€ 

858,344,000 

3,384,000 

102,438,000 

20,294,000 

1,486,000 

741,910,000 

38,824,000 

7,048,000 

8,550,000 


11,798,000 

744,710,000 

37,980,000 

5,624.000 

29  706,000 

18%  of    the  Demand  Deposits  and  5%  of    the 


£ 

727,840,000 

99,77&iOOO 

46,712,000 


Lawful  Reserve  consists  of 
Time  Deposits. 

NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES   (dollar  at  48.) 


'■  Ratio  of  gold  held  against  notes,  this  week,  13.80  p.c.  ;  last  week,  13.83  p.c. 


Loans  ..        .. 

Specie 
Deposits 
l-egal  Tenders 


April  6,  1918. 


150,082,000 

3,014,000 

142,022,000 

13,610,000 


Mar. 30,  1918. 


150,482,000 

2,928,000 

141,258,000 

13,4(8,030 


Mar.  23,  1918.   April  7, 1917. 


£ 
148,604,000 

2,934,000 
139,952,000 

13,172,000 


366 


^be  3nve6tor6'  IReview. 


April  13,  1918. 


BANK 

OP  FRANCE   (25  trancf  to  the  £). 

April  II,  1918. 

April  4,  1918. 
i 

Mar.  28,  1918. 
i 

April  u,  sgij. 

i     ■ 

t 

Gold  In  hand           .. 

>35.568,o8o 

133,516,680 

•33,457.480 

130,987,000 

Silver  in  band 

10,205,320 

10,198,640 

10,217,000 

10  384,240 

Bills  diaoounted      ,. 

63.330,640 

72,667,640 

53,128,720 

19.722,720 

Advance! 

45,142,920 

44,557.440 

44,114.280 

47.279,960 

Note  olroulatloo      .. 

i.043.47t.36o 

i.033.9i5.3fio 
3.350,480 

1,007,173,120 

753,765,080 

Publio  depoBlta 

2,287,360 

l,891,roo 

3,641,920 

Private  depoalta 
PoreiKD  Bills.. 

131,878,200 

«»5.oS3.76o 

112,542,280 

100,414,840 

462,000 

485,040 

371,320 

98,880 

FOREIGN  RATES  OF  EXCHANGE  ON  LONDON. 


Proportion  between  bullion  and  cironlation  21.51  per  cent.,  against  21.78  per 
cent,  last  weelc.  Advances  to  the  State  ^^604,000,000,  increase  £12,000,000.  'fhe 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium,  ^19,3x6,120, 
decrease  jC3<^>9^o,  and  at  the  branches  ^24,716,880,  decrease  /^7i,320. 


IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  £i. 


Ma''.  30,  igi8.  Mar.  23,  1918.  Mar.  15,  1918.  Mar.  31, 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances        ..        .. 
Note  oirculatioD 
Deposits 


126,343,800 
76,937.950 
801,712,950 
323,100 
598,890,350 
45 ',478,450 


I 

126,305,500 
66,957,150 
673.455,150 
259,050 
569,960,550 
356,455, 3'X) 


126,257,450 
66,109,050 
667,471,500 
309,800 
567,764.400 
337.255.450 


,  1917. 


I 

127,334,800 
19.032,450 
679,835,500 
4'i5.50Ci 
430,800,750 
420,273.900 


Clearing  House   return    during   March    ^59,815,355,    against    £420,879,905 
in  February. 

BANK    OP    SWEDEN  (18  kroner  to  the  £). 


Gold    .. 

Balance   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  .. 
Discounts  and  Loans 
Notes  in  circulation 
Deposits  at  notice  .. 


Mar.  22,  1918.  Mar.  16, 1918.    Mar.  9,  1918.  Mar.  24,  1917, 


t 
13,599,000 

7,287,000 

3,937,000 
14,755.000 
32,173,000 

8,138,000 


i 
13.049,000 

7,193,000 

3,959,000 
14,705,000 
32,756,000 

6,971,000 


i 
13,060,000 

7,340,000 

3,130,000 
12,715,000 
31,560,000 

5,183,000 


{. 
10,734,000 

7.731. ^»o 

4,032,000 

7,302,000 

21,598,000 

7,565,000 


BANK    OP    SPAIN  (25  pesetas  to  the  f). 


Mar.  30,1918 

Mar.23, 1918 

Mar.i6, 1918 

Mar.31,1917 

Gold        

Silver 

Forelen  Bills 

Discounts  and  Short  Bills  .. 
Treasury  Account,  &c. 
Notes  in  Circulation  .. 
Current    Accounts,   Deposits 
Dividends,  Interests,  &o.     .. 
Government  Securities 

{. 

80,291,950 

28,341,013 

3.5ii4.729 

30,352,127 

25,080,765 

114,123,403 

33,864.460 

1.595,533 

6,083,213 

79,948,941 

28,241,379 

3,562,844 

30,420,521 

25,014,821 

114,017,169 

33,766,316 

1.495.893 

5.858,916 

i 
79,937.892 
28,193,99s 

3,568,481 

30,345,940 

24.991,728 

114.547.835 

34.c97.245 

1.525,832 

5,227,053 

£ 

54.257.333 
30,146,139 

3,449.217 
31,516,170 
26,789,360 
95,r9i,2l8 
30,762,596 

2,734,652 
13,038.335 

NETHERLANDS  BANK  (12  Florins  to  the  £). 


Gold  and  Silver 
Bills  and  Advances 
Note  circulation 
Deposits.. 


April  6,1918. 


60,721,583 

9.653,583 

74,656,250 

5.195.333 


Mar.  30,1918 


£ 
60,789,000 
13,064,166 
7-!, 406,750 

4,730,333 


Mar,  23,1918 


c 

60,865,666 
11.401,333 

72,215,000 

5,358,500 


April  7, 1917 


49,784,000 

15,451.833 

63,226,416 

6,406,000 


SWISS  NATIONAL  BANK  (25  irancs  to  the  £). 


Gold  and  silver 

Bills 

Note  circulation 
Current  and  deposii 
accounts 


Mar.  30,  1918. 


£ 
17,059,668 
12,396,232 
27,825.172 

4.375.824 


Mar.  23, 1918. 

C 

17,062,928 
9,266,828 
25,856,875 

4,149.532 


Mar.  15,  1918 


£ 
16,970,560 
9,127,964 
25.533.136 

3.968,184 


Mar.  31,  1917. 


15,751.296 

7,109,112 

2I,I2ti,6g2 

3,^74.844 


BANK  OP  NORWAY  (18  kroner  to  the  £). 


Mar.  32,  1918.  Mar.  15,  igi8 


Gold 

Balance  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
DlsoouDts  &  Loans. 
Notes  Id  Circulation 
Deposits  at  notice-. 


6,741,000 

3,6ig,ooo 

7J3.0O0 

18,792,000 

188,303,000 

7,880.000 


6,521,000 

3.247,000 

713-wo 

19,677,000 

1 8,270,000 

8,867.000 


Mar.  7,  igi8.  Mar.  22,   1917 


6,524,000 

3,252,000 

713,000 

19,245,003 

17,852,000 
8,916,000 


7,063,000 

4»i77.coo 
706,000 
9,96.2,000 
14.766,000 
5,089.000 


BANK  OP   ITALY   (25  lire  to  the  £). 


Total  cash 
Inland  Bills 
Foreign  Bills    ,. 
Advances 

Government  securities 
Circulation 
Deposits  at  notice 
Current  accounts 


Feb.  10,  igtsljan.  31, 1918  Jan. 20, 1918,  Feb.  10, 1917 


£ 
43,0-4,880 
29,467,480 
4,426,000 
22,346,440 
8,806,,  60 
263,291,560 
35,555,840 
19.574.560 


£ 

44,c8-,6oo 
27,749.5fo 

4,423,600 
22,3B3,240 

8,815,560 

262,534,720 

32,321,160 

19,828,000 


i 

42,856.280 

28,603,240 

884,520 

20,60      ,480 

8,938,960 

262,244,120 

36,250,040 

22,271,560 


£ 

42,795.120 

20,227,560 

835,720 

15,155.800 

8,834,360 

155,910,600 

19,194,120 

■3,894,080 


LONDON  COURSE  OP  EXCHANGE. 

Place. 

Usance. 

April  9,  1918. 

April  II,  1918. 
Sellers.  Buyers. 

Sellers. 

Buyers 

Amsterdam,.     .. 
Paris      

Switzerland..     .. 

Genoa,  4c 

Spain     

Lisbon  and  Oporto 
Copenhagen. .     . . 
Christiania  ..     .. 
Stockholm  ..     .. 

Cable  transfers 

Cable  transfers 

Three  months' bills.,     ,. 

Cable  transfers 

Three  months' bills..     .. 

Cable  transfers 

Cable  transfers 

Three  months' bills..     .. 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

10.00 
2715 
27.55 

20  03 
ao.43 
42  40 

18.13 

28i 

15.15 
14.90 
1390 

10.05 
27.20 
27.60 
20.18 
20.53 
42.50 
18.23 
64 
29i 
15.25 
15.OJ 
14.00 

10.06 
27.15 
27.55 
20.05 
20.40 
42.30 
17.40 

64I 

28 
15.30 
15.00 
14.13 

10.09 
27.20 
27.60 
20.15 
20.50 
42.40 
17-55 

651 

29 

15.40 
15.10 
1423 

Paris,  cheqaes 

Amsterdam,  cheques 
Italy,  sight 
Madrid,  sight.. 
Lisbon,  sight  .. 
Switzerland,  sight    .. 
Christiania,  siKnt 
Stockholm,  sight      .. 
Copenhagen,  sight    .. 
Petrograd,  sight 
Alexandria,  sight 
Bombay,  T.T. 
Calcutta,  T.T. 
Hong  Kong,  T.T.     .. 
Shanghai,  T.T. 
Singapore,  T.T. 
Yokohama,  T.T. 
New  York,  cable      .. 
Buenos  Aires,  T.T... 
Valparaiso,  90  days.. 
Montevideo,  T.T.     .. 
Rio  de  Janeiro,  yi  days 


Method  of 
Quoting. 


Francs  to  £1 
Florins  to  £i 
Lire  to  £1  .. 
Pesetas  to  ^i 

Pence  to  milreis  . 
Francs  to  ;f  i 
Kroner  to  £1 
Kroner  to  £1 
Kroner  to  £1 
Roubles  to  jTio     . 
Piastres  to  £t 
Sterling  to  rupee. 
Sterling  to  rupee. 
Sterling  to  dollar. 
Sterling  to  tael 
Sterling  to  dollar. 
Sterling  to  yen     . 
I^ollars  to  £1 
Pence  to  dollar    . 
Pence  to  peso 
Pence  to  dollar 
Pence  to  milreis  . 


2S.22i 
12.107 
25.221 
25.22i 

53ld 

25.22i 
18.159 
18.159 
18.159 

%-^ 
1/4 
1/4 


24.58d. 
4.86i 

5id. 
l6d. 


Latt 
Week. 


jiMi 


This 
We«k. 


OPEN  MARKET  DISCOUNT.  Last  week. 

Per  cent. 


This  week 
Per  cen*. 


xhirty  and  sixty  day  remitted  ..  .. 

Three  months                 ,,  *•  .* 

Pour  months                   .,  ••  •• 

Six  months                       ,  ..  .. 

Three  months  fine  inland  bills  .  • 

Four  months  ••  ■. 
Six  months 

BANK   AND  DEPOSIT 

Bank  of  England  minimum  discount  rate 
,,  ,,         short  loan  rates  .. 

Bankers' rate  on  deposits 

Bill  brokers' deposit  rate  (call) 

„  7  and  14  day:' notice  .. 

Cucreot  rates  for  7  day  loans 
M  for  call  loans 


2i-3 


3 


The  Week's    Stock   Markets. 


Veo-y  little  has  been  discussed  in  the  City  this  week  except 
the  probable  effects  of  the  Man  Power  Bill  which  om  Junker> 
are  apparently  determined  to  force  on  the  countrj-.  To  say 
that  the  proposals  have  crea.ted  profound  uneasiness  in  busi- 
ness circles  is  to  greatly  understate  the  case,  and  the  mori- 
they  are  studied  the  more  unoecessjiry  and  futile  they  appear 
to  .be.  If  only  7  per  cent,  of  the  .available  verterans  are  to  be 
taken  this  year,  why  create  all  the  disturbance  which  ha> 
thrown  Lancashire  and  other  industrial  centres  into  a  panic? 
It  would  be  much  more  sensiibic  to  conscript  the  Old  Ago 
pensioners  at  once,  and  have  done  with  it ;  the  cost  would 
be  much  less  in  the  long  run,  and  equally  good  results  would 
be  achieved.  Moreover,  the  reopening  of  the  Irish  question 
in  the  worst  possible  shape  that  could  have  been  conceived  on 
the  eve  of  .the  report  of  the  Convention,  has  created  alarm 
among  all  except  a  remnant  of  Die  Hards,  whose  attitude  is  of 
the  "  Damrirthe-Consequences  "  type.  It  is  not  a  fruitful  auno- 
sphere  for  business,  and  the  reverses  we  are  suffering  on  the 
^^'e&tern  Front,  none  the  less  galling  because  they  are  really- 
unimportant,  tend  to  foster  pessimistic  views.  At  the  be- 
ginning of  the  week  gilt.*dged  securities  s.howed  exceptional 
strength,  but  they  have  fallen  back  since,  and  mosa  other 
departments  wejre  almost  entirely  lifeless.  Grand  Trunks  were 
noticeably  weak  on  .the  dJs.ippointing  monthly  statement,  and 
Argentine  Kails  did  not  benefit  much  from  another  series  ot 
excellent  traffics,  although  it  is  believed  tliAt  satisfactory 
shipping  arrangements  are  being  made  to  relieve  the  congestion 
of  produce  lying  in  the  country.  We  are  passing  through  a 
dark  hour,  but  there  are  good  reasons  to  hope  that  it  heralds. 
the  dawn. 


Dealings  on  the  Stock  Exchange  have  been  confined  to  the 
marking  of  round  about  2.500  bargains  per  day.  the  only- 
occasion  on  which  this  number  was  exceeded  being  Monday, 
when  the  week-end  accumulations  raised  it  by  the  magnificent 
figure  of  some  300.  At  the  same  time  the  tone  was  fairly 
cheerful,  which  is  all  the  more  suriirising  considering  the 
uneasiness  cjiused^  by  the  Man  Power  Hill,  and  the  exceedingly 
strained  political  situation  created  by  the  uipsetting  of  the 
Irish  truce.  Things  have  been  going  steadily  backwards  in 
the  last  day  or  two,  but  so  far  there  has  been  no  appearance 
of  selling  pressure,  and  the  declines  that  have  occurred  arc  not 
usually  of  much  importance.  War  Loans  began  with  a  burst 
of  strength,  which  carried  them  up  \  to  J,  but  nearly  the 
whole  of  this  gain  has  since  been  lost.  Indian  issues  have 
also  given  way,  and  Bank  stock  dropped  a  point.  Colonial 
issues  were  almost  entirely  neglected,  and  the  changes  have 
been  microscopic.  In  the  Foreign  market,  Spanish  Fours, 
after  a  bad  start,  advjinced  sharply,  but  Portuguese,  Brazilians, 
Guatemalas,  Cuban  Ports  and  t'ruguayans  have  all  given  way 
a  point  or  more.  One  or  two  Japanese  issues  have  improved 
a  little,  and  Greek  Fours  also  gained  a  point. 

Home  Railways  were  dull  all  the  way  through,  and  de- 
veloped weakness  towards  the  close.  Nothing  ha.ppened  in 
the  American  section,  and  Canadian  Pacifies  only  moved 
within  the  narrowest  limits,   and,  even  so,  recorded  very  little  j 


April  13,  1918. 


Zbc  Juvestovs'  IRevicw* 


367 


!  Last  I  This  11 

jWeeklWeekll 


I  Last  I  This 
Week  Week 


Consols 

War  Loan   3i% 

•*       4% 

)i  5%   1929-47- ■ 

n  4%.  19^9-42- • 

India  3% 

„     3i% 

Austrafian  5}%,  1920-22  . . 
Canada  4%.  1940-60 

.,        4i%,  »920-5 

N.S.W.4%.  1933 

Argentine  4%,  1900 

Belgian  3% 

Brazil,  1913 

„       5%.  1914    

Chinese  1896  

,,       1912  

Egypt  Unified  4% 

Caledonian  defd 

Gt.  Central  pm 

,.        „        dfd 

Gt,  Eastern 

Gt.  Northern  dfd 

Gt.  Western  *. 

LancB.  and  Yorks 

London  Brighton  defd.  . , 
London  Chatham  ord 

Canadian  Pacific   

E.  Indian  Guar.  4A  %  debs. 

Grand  Trunk  ora.    

Do.  1st  pf 

Do.  3rd  pf 

Antofagasta  dfd 

Brazil  Common.. 

B.  A.  &  Pacific , 

B.  A.  Gt.  Southern 

B.  A.  Western    , 

Anglo-South  American   . 

Bank  of  Australasia 

Bankof  N.S.  Wales 

Barclay  &Co."  A" 

Do,       "B" 

Capita]  &  Counties   

Chartered  of  India    

Hongkong  &  Shanghai    . 

Lloyds 

London  &  Brazilian 

Armstrong,  Whitworth  .. 
Birmingham  Small  Arms 

Cammell-Laird 

Cargo  Fleet 

Dorman,  Long  

Associated  Cement  ... 

Borax  dfd 

Bovril    

Brazil  Traction  

British  Amer.  Tobacco  pf. 
British  Aluminium  ..., 
British  Oil  &  Cake    .... 

Brunner,  Mond 

Ca&tner-Kellnei 

Coats 

Courtaulds 

Cunard 

Dennis  Bros 

Eastern  Telegraph   . , . 

Kastmans 

English  Sewing  Cotton 
Anglo-Kgyptian  "B"  .. 

Baku  (los.) , 

Burmah 

Lobitos , 

Maikop  Pipeline   , 

Mexican  Eagle  pf 

Allagar2/- 

Anglo-Java  Rub.  2/-     , 

Anglo-Malay  2/ 

Ayer  Kuning  £1 

Batang  Malaka  2/- 

Bekoh2/- I   4/4 

Brit.  N.  Borneo  Trust  £1     16/9 

Bukit  Cloh  2/- \ 4/i<| 

Bukit  Kajang£"i ' 

Bukit  Mertajam  2/-  

Bukit  Sembawang  2/-  .... 

Carey  United  £1   

Ceylon  Para  2/- 

Chersonese 

Cheviot  2/-  

Dalkeith  2/- 

Eastern  Invest.  Trust  £1.. 

Grand  Central  £1 

Gula  Kalumpong  jTi 

Highlands  £1 

Java  Investment  £1 , 

Java  Para  f  I  

Johore  Rubber  Lands  £1. 

Kamunin ;  2/- 

Kinta  Kellas2/- 

Kuala  Kubu  2/-  

Labua/- 

Langen  Java  £1 

Linggi2/- 

London  Asiatic  2/- 

Malacca  £1 

Malayalam  £1 

Merliuiau  2/-    

Padang  Jawa  2/- 

Pataling  2/- 


N.S.W.  44%5yr.bds 

,,      4i%,  1922-7 

..        5%.  1921-3 

5J%.  1920-2  .... 
New  Zealand  4%,  1929  . . 
Queensland  4% 

n  44%»  igat^S    .. 

Union  of  S.  Africa  4i%, 

1920-5    

Victoria  44%.  1920-5 

Westn.  Aus.  4%    

!|  French  War  Loan,  5%  . . 
Japan  44%  (ist),  1905   .... 

,     »        5%.  1907 

II  Mexican  5%,  1899    

Russia  4   % 

„     4i%,  1909 

M       5%.  1906 

London  and  N.-W 

London  and  S.-W.  dfd.  . . 
Do     red.  pf.  1914 

Metropolitan  

Do.        5%      pf-. 

Mel.  District 

Midland  dfd 

Nth,  British  dfd 

Nth.-Eastern  

Sth.-Eastern  dfd 

Chesapeake 

Erie 

Southern  


Cent.  Argentine  ord 

Leopoldina 

Mexican  ord 

San  Paulo  (Brazilian).... 

United  of  Havana 

London  City  &  Midland. . 
London  County  &  West/. , . 

London  Joint  Stock 

Nat.  Prov.  olEng.tjCioJ  pd) 
Do.  {£12  pd) 

Parr's    

Standard  of  S. A 

Union  Discount 

Union  &  Smiths 


3^„ 


[  Kynochs   

Mond  Nickel  ord 

I  South  Durham  Steel 

,Thornycroft    

!  Vickers 

Fine  Cotton  Spinners 

Forestal  Land 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay    

Imperial  Tobacco  'C 

Lever  Bros.  "  C  "  pf. 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

National  Steam  Car 

Pears,  A.  &F 

P.&O.dfd 

Royal  Mail 

Underground  Inc.  Bds.  . 


pf 


North  Caucasian  . 
Roumanian  Cons.. 

Shell 

Spies  {10/.) 

Ural  Caspian 


45/ 


Perak  2/-   

Port  Dickson  2/-   

Rub.  Estates  Johore  £1., 
Rub.  Estates  Krian  2/-. 

Rubber  Trust  £1 

Sampang  (Java)  2/-... 
Sapumalkande  £1     ... 

Seaport  £1 

Selangor 

Sengat  2/- 

Seremban  £1 

Shelfordri 

Sialang  £1    

Singapore  Para  2/-    ... 
Singapore  United  2/-    . 

Soember  Ajoe  2/- 

Stagbrook  £1 

Straits  Bertam  2/- . . . . 
Sumatra  Para  2/- 

Sungei  Bahru  £1   .... 

Sungei  Kapar  2/-   .... 

Sungei  Kruit  £1 

Taiping  2/- 

Tali  Ayer  £1  

Tandjong  £1    

Tandjong  Malim  £1,. 

Tebrau  £t  

Telogoredjo  £1 

Tcmpeh  2/- 

United  Serdang  2/-  .. 

United  Sumatra  2/-  .. 

Vald'Or  2/- 

Vallambrosa  2/- 

Way  Halim  1/8  pd.   .. 


Abbontiakoon  (10/-) 

Bechuaiialand  Exp 

Brakpaii  

Broken  Hill  Prop.  (8/-)   . 

Cam  &  Motor 

Central  Mining  (£12)  ... 

Chartered    

City  Deep      

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (10/-)  ... ., 
De  Beers  did.  (£2  lo-s.)  , 

East  Rand   

Geduld 

Gov,  Areas  Mod     


4/ 

4/ 

7/ 

7/ 

*i 

4i 

67/6 

67/6 

% 

11/ 

■i! 

15/1J 

14/14 

^i 

2I 

33/ 

,0/ 

16/6 

16/6 

1% 

:.1i 

Wi 

5/ 

3ft 

3^. 

Gt.  Boulder  (2/->    

Kyshtim    

Mashonaland  Agency 
Meyer  &  Charlton    .. 

Modder  "  B  " 

Do.    Deep 

Mysore 

Rand  Mines  (5/-)    ..-. 

Rio  Tinto(£5)   

Russo-Asiuic 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep  


971 
9» 

97, 
p8i 
85  X 
79 

79 

91} 

82 

57 

34i 

36 

44 

88 

2li 

20h 

744 

14 

55J 

13 

925 

274 

59 
•9 
84 


974 

9" 

97, 

I? 

n 
924 

934 

924 

79 

76 

92 

82 

344 

36 

44 

88 

»l4 

204 

744 

14 

55i 

13 

92 

274 

59 

19 

S4 


60 
364 
18 
184 
74 
75 
144 
284 
254 
294 
32 

lit 
264 

38/6 
3A 
<4/6 
40/6 
43/ 
35/ 
48/ 
65/ 

It 
33/6 
20/ 
35 

3i 

17/6 
17; 

3374 
122 
774 

\ 
5/6 

7/ 

3/ioJ 
39/ 
3/6 
28/3 
2/4 
27/ 
26(6 
31/3 
3/' 
37/6 
35/ 
64/ 
4/ 
3/1 
2/44 
33/ 
6/3 

8/3 
36/3 
10/44 
49/ 

4/2 
32/6 
84/ 
30/ 
63/ 
40/9 
2/74 
10/6 

8/3 
3/6 
21/ 


12/9 
■  9/6 
6/6 
4tf 
7A 

7^ 
2t| 

2*1 

64 

3§ 
3^ 


59 

364 
18 
184 
74 

.5i 

28* 

254 

294 

32 

114 

104 

261 

38/ 
38 
44/6 
40/6 

42/6 

35/ 

48/3 
62/6 

24 

74 
33/6 
20/6 

3A 
17/ 
17/ 

li 
3364 
121 

77 


7/9 
5M 

5/6 

iS 

7/ 
4^ 

3/5 
28/ 
2/4 

26/6 

3'/3 

3/ 

36/9 

35' 

64/6 

4/ 

3/ 

2/44 
33/ 

6/ 

8/! 
36/3 
10/44 
49/ 

4/ 
32/6 
84/ 
30/ 
63/ 
40/6 

2/64 
10/3 

8/3 

3/6 
21/ 


12/ 

m 

6/ 
4}§ 
7A 
7 
2Ms 
2^ 
64 
2A 
ihi 
3A 
23°? 


business.  Trunks,  on  the  other  hand,  were  decidedly  flat  :in(f 
gave  way  persistently,  the  loss  on  balance  being  very  sub- 
stantial. Mexicans  wore  scajcely  mentioned,  and  Argentines, 
after  a  certain  display  of  strength,  followed  the  trend  of  the 
rest  of  the  market.     San  Paulos  dropped  a  point. 

Bank  shares  generally  were  steady,  but  nothing  nbticcablc 
occurred  except  the  strength  of  the  Indian  division,  which  is 
still  under  the  influehce  of  the  excellent  results  obtained  by 
the  Chartered  Bank.  Breweries  were  utterly  stagnant,  and 
almost  the  only  movement  of  any  prominence  was  a  fall  of  z 
points  in  Guinness  preferred.  Egyptian  securities  were  flat 
with  the  exception  of  Salt  and  Soda  shares,  which  gained  a 
fraction.  Iron  and  Steel  shares,  as  a  rule,  were  weak,  but  the 
Birmingham  Small  Arms  showed  conspicuous  strength,, 
although  closing  (below  the  best.  Other  movements  were  not 
of  much  importance,  but  Otis  Steel  dropped  as  much  as  5 
points.  In  the  Land  section  Nigers  at  first  obtained  a  con- 
siderable amount  of  support,  but  the  gain  was  subsequently 
lost.  Nigers  were  rather  dull,  and  in  the  Shi.pping  division 
Furness,  Withy,  Prince  Line,  and  P.  and  O.  all  gave  way.. 
In  the  Telegraph  group  Marconis  were  flat  all  the  way  through. 
Among  Miscellaneous  Industrials,  Courtaulds  continued  to  re- 
cede, and  are  substantially  lower  on  balance,  while  Coats  also 
were  weak,  and  where  changes  occurred  in  other  directions 
they  were  usually  adverse. 

Oil  shares  ait  first  displayed  a  good  deal  of  animation  under 
the  iead  of  Anglo-Kgyptian,  Burmahs,  and  one  or  two  of 
the  other  usually  prominent  .shares.  Subsequently,  however, 
the  tone  turned  round,  and  "  Shells,"  Trinidad  Leaseholds, 
North  Caucasians,  Venezuelan  Concessions,  and  several  others 
all  gave  way  a  greater  or  less  extent.  Rubber  .shares  have 
fallen  into  comparative  neglect,  and  business  was  on  a  much 
more  modest  scale  than  has  usually  been  experienced  of  late. 
The  tone  was  dull  owing  to  the  persistent  restrictions  of  out- 
put and  the  uncertain  tone  of  the  market  in  the  commodity. 
Holders,  however,  are  unwilling  to  part  in  the  hope  that  the 
artificial  scarcity  which  it  has  attempted  to  create  will  allow 
them  either  substantial  returns  on  their  investments  or  a  sub- 
stantial profit  on  realisation. 

The  scheme  announced  some  time  back  for  the  simplification 
of  the  capital  of  Lever  Bros.,  Ltd.,  and  which  was  withdrawn 
because  sufficient  majorities  were  not  present  to  procure  its 
legal  acceptance,  has  now  been  brought  forward  again.  Under 
it  all  the  various  issues  of  ;^io  preference  shares  were  to  be 
divided  into  £1  shares  and  consolidated,  the  first  and  "  A  " 
preference  into  first  preference,  and  the  "  B  "  and  "  C  "  pre- 
ference into  new  "A"  preference  shares.  In  order  to  adjust 
the  slight  differences  in  value  holders  of  first  preference  and 
"  B  "  shares  were  originally  offered  2S.  6d.  in  cash  per  /lo 
share  to  tempt  them  to  agree.  They  did  not,  and  the  only 
change  now  made  is  that  the  cash  offer  is  raised  to  5s._  The 
scheme  should  now  be  accepted,  for  we  can  see  no  objection^  to 
it  except  that  the  simplification  might  have  been  carried 
much  farther.  It  must  be  a  great  inconvenience  to  have  so 
many  varieties  of  shares  to  keep  registers  for  and  to  deal  in 
on  the  market.  And  the  £1  share  will  be  much  more  market- 
able. It  is,  therefore,  quite  likely  to  conmiand  a  higher 
price.  ^^___^^^__^^^_^^^^__ 

LONDON    PRODUCE   MARKETS, 

Sugar. — Market  remained  without  change. 

Coffee. — A  subdued  tone  pervaded  this  market  during  the 
week,  consumers  apparently  being  well  stocked  after  recent  liberal 
purchases,  but,  with  no  undue  pressure  to  sell,  prices  moved 
steadily.  In  auction,  some  bold  grey  Costa  Rica  sold,  130s.  to 
133s. ;  medium  sizes,  127s.  to  1303.  The  terminal  market  continues 
quite  inactive  and  nominal 

Spice.— Only  quiet  trading  was  in  force,  but  with  certain 
reserve  on  the  part  of  sellers  a  steady  price-level  resulted.  Fair 
black  Singapore  pepper,  on  spot,  is.  .\hi. ;  white  ditto,  2s.  2d.  ; 
Tellicherry,  is.  sd. ;  Muntok,  2s.  2Jd.  Fair  Zanzibar  cloves,  spot, 
2s.  5d.  Pimento,  sjd.  Ginger  sparingly  offered.  Tapioca  firm, 
quiet.  Fair  flake,  spot,  8d.,  buyers.  Fair  Penang  seed  pearl, 
quoted,  77s.  ;  medium,  73s.  6d.  Fair  small  sago,  80s.,  buyers. 
Japanese  farina  quiet ;  and  May-July  sold,  88s.,  c.f.  and  i.  terms. 

Rice  in  demand,  and  there  was  a  steady  inquiry  for  both  beans 
and  peas. 

Isinglass.— Periodical  auctions  produced  an  increased  quantity, 
and  with  importers  more  willing  to  meet  the  market,  prices  were 
irregular,  and  oa  the  average  2s.  per  lb.  lower.  Para  lump,  sold, 
15s.  3d.  to  i6s.  3d.  ;  pale  Penang  leaf,  15s.  to  i6s.  3d.  ;  Bombay, 
los.  3d.  to  i6s. 

Peppermint  Oil.— Japanese,  spot,  4s.  Menthol,  14s.  6d.  ;  and 
camphor,  2J  lb.  slabs,  4s.  6d. 

Shellac— Spot  business  quite  retail  on  the  basis  of  425s.  for 
fair  free  second  orange. 

Rubber  market  remained  quiet,  and  prices  on  the  week  are  a 
shade  easier.  Plantation  standard,  spot,  crepe,  changed  hands 
at  28.  4jd.  to  2s.  4jd.  ;  May-June.  2s.  sd.  ;  July-December,  2S.6d. 
to  2S.  6Jd..  and  2s.  6Jd.  Ribbed  smoked  sheet,  spot,  done,  2S.  4d. 
to  2s.  3Ad.     Fine  hard  Para,  spot,  quoted,  3s  ojd. 

Corn  (Mark  Lane).— The  serenity  of  this  market  remams 
undisturbed,  but  steadiness  continues  the  all-round  prevajling 
characteristic.  Supplies  are  still  sparingly  offered,  and  dealings 
have  again  been  mainly  confined  to  the  principal  grades  ot 
Manitoba  wheat,  No.  i  at  8is.  6d.  and  No.  2  at  80s.  Hour- 
Canadian  export  patents  quoted  at  51s.  gd..  landed;  ^Dg"=°- 
44s,  3d.  per  sack.  Maize  out  of  offer  at  present,  and  quite 
nominal.     Maize  meal,  white,  quoted  at  64s.  6a.     Oats :  American 


368 


Zbc  3nve8tor6'  IRevicw. 


April  13,   1918. 


•.vhite  clipped  No.  2,  6is.  6d.  to  62s.  ;  English,  47s.  3d,     Barley  : 
<yalifornian,  93s.,  nominal.     English,  62s.  gd. 

Cotton  (from  our  Manchester  correspondent). — The  market 
during  the  past  week  has  been  in  a  very  disturbed  state.  Traders 
are  wondering  what  will  be  the  condition  of  the  industry  in  a  few 
months'  time  if  the  drastic  proposals  of  the  Government  with  regard 
10  man  power  are  put  into  operation.  An  unsettled  feeling  has 
prevailed  in  all  quarters,  and  the  majority  of  buyers  and  sellers 
have  decided  to  adopt  a  waiting  policy  until  the  prospects  are 
clearer.  Better  advices  have  been  received  as  to  the  outlook 
for  the  American  cotton  crop,  but  prices  have  not  been  much 
affected.  A  considerable  demand  continues  to  be  experienced  in 
Egyptian  cotton.     The   inquiry    in    light    fabrics   such    as    mull 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 
WBBK  ENDING    APRIL  ii,  1918. 


Insurance    News. 


taat 

Week. 


Tills 
Week. 


•nfar— per  owl., 
duly  14/,  98% 
polarisation 

Tate's  Cubes 

Crushed 

Granulated  ..     .. 

Lyle's  granulated 

Foreign  granu- 
lated, first  marks 
f.o.b.,  spot 

GermanCubel.o.b. 

French  Cube 

prompt 

Crystallised,  West 
India 

Beet,   88%    f.o.b. 


Tea— per  lb., duty 

1/-  lb. 
Indian  Pekoe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe    S')ucbong 
Ceylon  Pekoe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe  Souohong 

'Cocoa  —per  cwt, 
duty  6J.  per  lb. 

rrlnidad — per  owl 

Grenada 

West  Africa..     .. 

Ceylon  Plantation 
'Gruayaquil     ..     ., 

OofT«e — per  owl 
duty  47I-  per  owl 

Bast  India    ..     ,, 

Jamaica 

Cosla  Kloa  ..     ., 

ProTUIoni— 
Butter,  per  cwt 

Australian  finest 
.  Argentine     . .     , 

Irish  Creameries 

Dutch  ditto..     .. 

Russian  finest     ., 

Paris  baskets 

Danish  finest 

Brittany  colls  — 
doz.  lb 

Bacon — per  owt. 

Irish      

Continental..  .. 
Canadian  ..  .. 
American  ,.  ,. 
Hami— per  cwt, 

Irish       

Canadian  . .  , . 
Amerloan     ..     ,. 

OhcMo — per  owt. 

Dutch 

Canadian  . ,  . . 
English  Cheddar 
Wilts  loaf  . .  . . 
New  Zealand 

Rice — per  cwt. 

.  Japan     

Rangoon  3  stars  . . 
B(ti— per  130. 

English 

Irish      

Danish 


e   8.    d. 


t  13 

2  13 
2  6 
2     6 


nom. 
nom. 


369 
nom. 

9.  d.  s.  d 

nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 

.    d.  s.  d 

up  to  go  0 
„  85  0 
„  65 

„  100  0 

,,  90  o 


£      8.     d 


a  13 
2  13 
2    6 

2    6 


nom. 
nom. 


269 
nom. 


Wool— per  lb. 

A  u  s  trallan 
Scoured  Merino 
Scoured  Cr'sabr'd 
Greasy  Merino  .. 
Greasy  Crossbred 
New  Zealanc^ 
(scoured)  Merino 
Greasy  Crossbred 
Cape  snow  white 

Indlarubberp.lb 

Plantation,      Spot 
Crepe  . ,    . . 


nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 
nom. 

s.  d.  s  d. 

up  to  90  0 
,.  85  0 
..  65  o 
,,  100  0 
,,  90  0 


■  8p«lter— 

G.O.B.  as  to  posi- 
tion      


Flour—per  sack. 

Country  Straight 

Runs  ex  Mill . . 


iio-o  135-0 
77-0  151-0 
ii»-o  137-0 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


172/ 

172/ 

i7i/-«72/ 

171/-180/ 

203/ 
162/-165/ 
125/-165/ 

129/6-160/- 
nom. 
nom. 
nom. 
nom. 

•.    d. 
nom. 
26    3 


34  0-36  0 
32  6-33  0 
34  o  35  o 


£54  £50 


Last 
Week. 


This 
Week. 


44/3 


iioo  135  o 
1100  1370 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


17^1 

172/ 

171/- 1 72/ 

1711-ito} 

203/ 
i6a/-i65/ 
125/-165/ 

129/6-160/- 

nom. 

126/-168/ 

nom. 

nom. 

s.  (1. 
41  3 
z6    3 


32  0-35  o 
32/ 

33  0-35  0 


£54- £50 


44/3 


Coal — per  ton 

Durham,  best  .. 

Seconds        ..  . 
East  Hartlepool. 

Seconds       ..  . 
Steams,  best 

Seconds       ..  . 

Lead— per  ton, 
English  Pig..     . 
Foreign  solt,  net 

QulckiUver— per 

bottle  tirsthaod 


Tin— per  ton 
Bnglish  Ingots     . 

Do,  bars  .• 
Standard  cash  . . 
Tin  Plates, per  box 
Copper — per  ton, 
Knglish,     Tough, 

per  too  .  ■  .  ■ 
Best  Selected     .. 

Sheets 

Standard      ..     .■ 
Jute— pet   ton. 
Native    tirsts    for 
shipment 


£   8.  d. 

nom. 
nom. 

nom. 
nom. 

nom 
nom, 
nom. 


nom. 

nom. 

nom. 

nom. 
■\2  6 
29    6 

i       8.    d. 

nom. 


£320-£32 

i3Ji-£32 

£■316 

nom. 


nom. 
£ll9-;fl23 


011»— 

Linseed, per  ton.. 

Rape,  crude  

Colt'nSeeU, crude 
Petroleum  Oil, pet 

Bibs. 
Water  White 
Oil  Seeds, Linseed 
Calcutta— pet   ton 
Spot 
Kape     


Iron — per  Ion 
Cleveland  Cash  . . 

Tobacoo  —  duty, 
unman  tifaclureil 
7/4108/0  per  lb. 

Maryland  &  Ohio, 
per  lb.  bend    .. 

Vitginialeai, 

Kentucky  leal    .. 

Latakia 

Havana 

Manila 

Cigars,  duty  10/6 
per  lb. 

Timber— Wood. 

Pitch  Pine    ..     . 
Indian  Teak 

Turpentine- 
American  Spot 


if  58 
£66 

£^ 

'l7h 
i/SJ 


£    ».  d. 

nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom. 


0    2    4j 


nom. 
nom. 
nom. 
nom. 

32  6 

29  6 

£     8.    d. 

nom. 
£29i-£28i 

nom. 


£325-^330 
t3*^iC33i 

£322 

nom. 


nom. 

£119-^123 
£149    ^ 


£58 

it 

l/8i 


39  15    0   29  15    o 
£29-io£30  i'29-io£30 


nom. 
o  8—2 

0  7 — 0  I 
2  0—5    I 

1  6-6    6 
Dom. 

3/  upde. 


I300/— 400/ 
B8o;— 700/ 

124/3 


Copra— per  ton 
Malabar 
Cey.on  . .     . . 
F.M.S.  Singapore 
F.M.    Straits 


46  o 
46  0 
45  to 
45  10 


nom. 
08-2     I 
07-011 
30-5    o 
16-66 

nom. 

3/  upds. 


500/—  400) 
380;—  700; 

124/3 


46  0 
46  o 
45  10 
45  to 


dbooties  and  jaconets  for  India  has  tended  to  broaden,  and  some 
producers  have  added  to  their  engagements.  There  are  no  signs 
of  increased  activity  in  sized  goods.  Transactions  worth  mention- 
ing for  China  have  been  few  and  far  between.  Less  activity  has 
shown  itself  for  most  of  the  minor  outlets  East  and  West.  The 
home  trade  continues  healthy,  but  numerous  buyers  have  not  been 
so  ready  to  give  out  orders  to  manufacturers.  Prices  in  American 
yarns  have  tended  to  go  against  buyers,  but  the  turnover  has  been 
reduced,  partly  owing  to  the  small  supplies  offered  by  spinners. 
The  ijuicli  delivery  of  certain  counts  and  qualities  is  now  quite 
impossible.  Export  yarns  have  been  sold  in  sorting-up  lots  for 
India  and  France.  Prices  in  Egyptian  spinnings  continue  to 
advance,  and  the  undercurrent  of  demand  has  been  encouraging. 


In  spite  of  the  storm  of  disapproval  raised  in  various  quarters 
by  those  who  considered  that  the  directors  of  the  Friends'  Pro- 
vident Society  ware  making  a  mistake  in  buying  the  shares  of 
the  Century  Insurance  Company,  the  arrangement  is  being 
persisted  in  by  those  concerned,  and  it  is  now  announced  that  the 
offer  made  by  the  Friends'  Provident  has  been  accepted  by  all 
but  a  very  small  percentage  of  the  Century  shareholders,  and 
that  holders  of  a  number  of  the  outstanding  shares  are  abroad. 
The  purchase  has,    therefore,   been   completed. 

Kxcellent  results  were  achieved  by  the  New  Zealand  Insur- 
ance Company  in  the  year  to  November  30,  the  surplus  earn- 
ings showing  an  increase  of  ^'19,393  at  ;f  119,023.  Including 
nett  interest,  the  total  income  came  to  ^fi, 207, 118.  During  the 
past  few  years  very  handsome  reserves  have  been  set  aside  for 
reserves;  including  /fjo.ooo  thus  .set  aside  from  the  past  year's 
profits,  the  amount  so  allocated  in  the  four  years  1914-1917 
comes  to  ;^'234,5oo;  consequently  the  directors  are  now  in  a 
position  to  raise  the  distribution  to  8s.  a  year,  an  tncrease  of 
2s.  a  share,  the  amount  cairied  forward  being  ^^40,174,  as  com- 
pared with  /-i,oSo  brought  in. 

An  appreciable  expansion  is  shown  in  the  business  done  by 
the  State  Assurance  Company,  the  total  nett  premium  income 
for  1917  amounting  to  £373,Syc),  an  increase  of  jC3<),3Sg. 
Claims  and  expenses  at  jC32^,Ss3  were  ;f 3 1,526  higher,  the 
surplus,  including  interest,  being  /6o,2io,  an  increase  of 
^'9,974.  The  available  total  was  jCby,yoy,  an  increase  of 
.^^o>47,') ;  .1^5.000  more,  or  ^'20,000  in  all,  is  put  to  investment 
fluctuation  and  contingency  account,  &c.,  and  after  raising 
the  total  distribution  for  the  year  to  20  per  cent.,  as  compared 
with  12^  per  cent,  for  the  previous  year,  the  carry-forward  is 
/.'io,86o  more  at  ;^3i,7i8. 

The  cost  of  the  principal  fire  losses  in  the  United  Kingdom 
during  March  are  estimated  at  j/r337,ooo,  a  decrease  of  ;f  17,000 
as  compared  with  the  corresponding  month  la.st  year,  making 
the  total  for  the  three  months  to  March  31  /■i,o48,ooo,  an  in- 
crease of  ;^236,ooo  when  compared  with  the  first  three  months 
of   1917. 

For  J917  the  results  attained  by  the  Law  Fire  Insurance 
Society  were  not  so  satisfactory  as  in  1916,  ina.smuch  as  claims, 
commission,  and  expenses  increased  by  ^(^32,120  to  ^'122,164. 
whereas  the  premiums  were  only  ^'7,698  higher  at  ^165,112. 
Consequently,  after  reserving  40  per  cent,  of  the  premium 
income  for  unexpired  risks,  and  adding  ^^3,045,  against  ;^3,632, 
to  the  present  reserve  fund,  by  way  of  additional  reserve,  the 
credit  balance,  including  interest,  at  ;f58,979,  was  £^7A7S  lower 
than  at  the  close  of   1916. 

An  increase  of  ;^29,9oi  is  shown  in  the  available  profits  of 
the  Law  I'nion  and  Rock  Insurance  Co.  for  191 7,  the  profit  and 
loss  account  balance  being  _if4i9,S27.  The  dividend  is  main- 
tained at  8s.  per  share.  ^^25,000  is  put  to  Investment  reserve, 
against  nil  a  year  ago,  and  the  balance  forward  is  raised  by 
/ 5,897  to  ;f 295,489.  Nett  fire  premiums  at  ;f 320,011  were 
^'34,285  more,  while  claims  increased  by  only  ^^12,207  to 
;^'i44,o35,  the  loss  ratio  being  actually  1.9  per  cent,  lower  at  45 
per  cent,  of  the  premiums.  Expenses  at  .^^133, 838  were  .1^11,593 
more,  and  the  balance  carried  to  profit  and  loss  account  was 
;^6o,305,  against  ;^62,3i3  in  igi6.  Special  fire  reserves  received 
an  addition  of  ;^i3,7i4,  raising  the  total  to  ^^328,005.  An  in- 
crease of  ^5,370  in  the  income  of  the  accident  department  was 
accompanied  by  a  reduction  of  £3,776  in  the  amount  of  the 
claims,  &c.,  and  after  malting  provision  for  unexpired  risks  an 
additional  £5,3^1,  or  .1^33,9571  was  tran.sferred  to  profit  and 
loss  account.  In  the  life  department  policies  for  /■  960,826  were 
issued,  the  nett  business  retained  being  ^^929,726,  showing  a 
substantial  increase  over  1916  results,  when  the  nett  total  wa.< 
;^86o,95o.  Claims  absorbed  ;f30.8i5  more  at. £631,832,  and 
;^i38,65i  was  added  to  the  life  funds,  raising  them  to 
/,8, 355, 596.  Nett  rate  of  interest  earned  was  £n  7s.  3d.  per 
cent.,  an  increase  of  iis.  2d.  per  cent.  Total  assets  now 
amount  to  ^10,340,370. 

While  the  number  of  policies  issued  by  the  Metropolitan  Life 
Assurance  Society  in  1917  increased  by  41  to  146.  the  sum 
assured  slightly  decreased,  the  total  being  £1^3,^39,  against 
;f  170,537  nett.  Claims  by  death  under  181  policies  amounted 
to  ;f  184.674  (of  which  ;f  14,099  was  directly  due  to  the  war). 
The  number  and  amounts  expected  were  221  policies,  assuring 
;f  186,218.  The  claims  were  heavier  Ih.in  in  1916,  when  they 
amounted  to  ;f  114. 657;  the  mortality  was  chiefly  among  the 
older  members,  of  whom  an  unusually  large  number  died  dur- 
ing the  year.  A  further  depreciation  in  securities  had  to  be 
met,  and  ;f  20.500  was  written  off,  of  which  ^^15.000  was  trans- 
ferred from  the  reserve  for  expen.ses  of  management  in  the 
valu.ation  iccount.  In  various  ways  'the  war  has  cost  the 
society  nearlv  ;f3oo.ooo.  a  sum  which  wou"*!  have  been  sufiSctent 
to  increase  the  rate  of  aUitement  of  premiums  by  over  18  per 
cent.  The  fact  that  the  dfrectors  have  been  able  to  maintain 
the  pre-war  rate  of  reducfTon  of  premiums  justifies  their  con- 
fidence in  the  financial  strength  of  the  society. 


The  Briton  Ferry  Chemical  and  Manure  Co.,  Ltd.,  is  seeking 
powers  to  increase  the  capital  by  the  creation  of  50,000  ordi- 
nary and  25.000  preference  .shares  of  ;^i  each,  in  order  to  pro- 
vide for  the  necessary  capital  expendUure  on  a  projected  new 
fertiliser  plant.  Treasury  sanction  to'the  issue  has  apparently 
still  to  be  obtained. 


April  13,  1918. 


^be  Jnvestots'  IRevtew. 


369 


American  Business  Notes. 

Had  space  permitted,  there  is  a  good  deal  which  might  be 
said  about  the  position  of  the  Finance  Trust  companies  of  the 
United  States,  and  especially  those  of  New  York.  As  it  is  we 
cannot  now  enter  into  any  minute  examination  of  the  position 
of  individual  companies,  and  must  be  content  with  a  brief  sum- 
mary of  the  main  facts  in  bulk.  The  most  striking  fact  of  all 
is  the  development  of  these  trusts  from  small  beginnings  to  a 
position  of  prime  importance  in  the  business  machinery  of 
America.  At  the  end  of  1907,  the  total  liabilities  on  deposits  of 
the  New  York  and  Brooklyn  trusts  was  $605,653,000.  That  was 
about  the  lowest  point  reached  after  the  panic  of  September 
in  that  year.  On  August  22  of  the  same  year  the  liabilities  on 
deposits  was  $946,610,000,  or  about  ;if  190,000,000,  and  they  fell 
to  ;f  121,000,000  in  December.  But  six  years  later  the  liabilities 
were  up  to  $1,077,045,000,  or  ;if2 15,400,000,  and  have  gone  on 
steadily  increasing  ever  since,  until,  on  November  7  last  year, 
the  aggregate  liability  had  risen  to  over  ^^460,000,000,  or 
$2,300,742,000. 

In  the  early  days  of  these  trusts  we  had  a  frank  and  out- 
spoken disbelief- in  their  soundness.  They  seemed  to  us  to  be 
mere  instruments  in  the  hands  of  the  great  financiers,  to  be 
used  by  them  in  manipulating  and  controlling  the  markets,  but 
our  greatest  fear  in  regard  to  their  future  was  the  fact  that 
they  were  entering  into  competition  with  banks  in  conducting 
ordinary  business  of  a  current  drawing  account  banker,  and 
doing  so  without  any  cash  to  speak  of.  Some  of  them  had. little 
or  none  in  their  tills,  and  none  at  all  in  reserve.  After  a  while 
this  perilous  position  was  much  improved,  and  the  trusts  grew 
in  public  estimation  as  they  grew  in  wealth  and  in  the  strength 
of  their  cash  reserves.  When  they  came  to  enter  the  Clearing 
House  the  opportunity  was  taken  to  standarise  their  cash  re- 
quirements. They  had  to  have  so  much  cash  in  hand  before 
they  could  become  members,  and  now  this  again  has  been 
changed,  not,  we  fear,  wholly  for  the  better,  by  their  joining 
the  Federal  Banks  system.  On  November  29,  1916,  the  New 
York  group  of  trust  companies  possessed  $138,302,000  in  specie 
in  hand  ;  besides  $  14,598,000  of  legal  tender  banks'  notes  and  other 
currency,  so  that  altogether  they  had  their  reserve  of 
$152,900,000.  But  by  November  14  last  year  the  specie  was 
down  to  only  $43,494,000,  and  the  legal  tenders,  &c.,  to 
$13,447,000.  This  is  the  result  of  their  coming  under  the  sway 
of  the  Federal  Reserve  Banks.  Their  cash  was  transferred  to  the 
Federal  Reserve  Bank  of  New  York,  and  appears  in  their 
accounts  as  debt  of  $146,741,000,  due  from  that  bank.  How 
this  arrangement  will  work  out  it  is  no  use  attempting  now  to 
forecast  or  guess.     We  just  note  the  change. 


The  Week  in  IVIines. 

There  has  been  little  disposition  to  do  business  in  the  Mining 
markets  this  week,  owing  to  the  new  man-power  proposals 
dominating  all  other  considerations.  Quotations  have  conse- 
qently  shown  a  tendency  to  droop,  not  from  any  pressure  to 
sell,  but  from  absence  of  support.  There  have  been  a  few  pro- 
minent exceptions  to  this  rule,  notably  the  activity  and  buoyancy 
of  Cornish  tin  .shares. 

South  ast)  West  Africans. 

Rand  Mining  shares  show  a  general  decline,  partly  in  conse- 
quence of  the  rather  poor  returns  for  last  month,  which  show 
that  the  effects  of  the  recent  abnormal  floods  have  not  yet  com- 
pletely worn  off,  though  a  marked  improvement  is  expected 
this  month.  New  Modders  have  iallen  i  to  22^,  and  Modder 
B's  -^  to  yi  on  the  decreased  profit  for  March.  Falls  of  J  are 
recorded  by  Brakpans  at  45^,  Rand  Selections  at  4^,  and  Rand 
Mines  at  2^,  while  Wolhuters  have  fallen  to  5s.  on  poor  divi- 
dend expectations.  Springs  are  ^V  easier  at  3^,  though  it  is 
stated  the  consideration  to  be  received  by  this  company  for 
facilities  to  be  granted  to  the  Rietfontein  West  is  to  be  more 
favourable  than  was  originally  contemplated.  Diamond  de- 
scriptions have  naturally  weakened,  De  Beers  deferreds  being 
quoted  at  i2id.  In  the  Rhodesian  section,  Chartereds  have  been 
supported  at  14s.  gd.,  and  the  debentures  at  105.  Cam  and 
Motors  have  spurted  is.  to  us.  6d.,  and  Globes  were  bought 
up  to  i-^  on  the  dividend  declaration.  Rezendes  are  back  to  4. 
West  Africans  have  weakened,  but  business  has  been  practically 
non-existent. 

Copper  and  Miscellaneous. 

Australasian  Copper  shares  have  declined,  particularly 
Hampdens  and  Mount  Morgans,  which  are  down  to  27s.  and 
31S.  6d.  respectively.  The  fall  is  probably  due  to  labour  troubles 
and  shipping  difficulties.  Broken  Hills  have  weakened  some- 
what; Norths  are  quoted  at  2  31-32,  Souths  at  2  31-32,  and 
Zincs  at  20s.  3d.  Proprietarys  are  better  at  67s.  6d.  Tin 
shares  have  been  supported,  partly  on  the  rise  in  the  metal  to 
£322  a  ton,  but  as  regards  Cornish  descriptions  the  buying  is 
based  on  good  developments  and  the  excess  profits  duty 
arrangements  with  the  Government.  Geevors  have  risen  4s.  6d. 
to  27s.  6d.,  South  Croftys  5s.  to  50s.,  and  East  Pools  2S.  6d.  to 
32s.  6d.  The  South  Crofty  Co.  is  expected  to  issue  a  circular 
«hortly  to  the  shareholders.  Among  Nigerians,  Nigerian  Tin 
Corporations  advanced  to  i  3-32  in  view  of  the  Corporation's 
holding  of  Geevors,  and  Naragutas  improved  to  J^.  Russian 
descriptions  have  firmed  up  slightly  on  Mr.  Leslie  Urquhart's 
speech  at  the  Irtysh  meeting.  In  the  Indian  group,  Ooregums 
have  advanced  is.  qd.  to  20s.,  on  the  unexpected  maintenance 
'>f  the  dividend  at  the  same  level  as  for  1916.  Buying  of  Kan- 
bank  (Burma)  Wolfram  shares  has  lifted  the  price  ii  to  i  9-32. 


MINING    NEWS. 

Broken  Hill  Proprietary.— The  full  report  lor  the  half- 
years  ended  May  31  and  November  30,  1917,  show  that  extra- 
ordinary rapid  progress  has  been  made  with  the  iron  and 
steel  works,  which  form  the  major  portion  of  the  undertaking 
now.  Production  in  the  November  half-year  was  interfered  with 
by  a  general  strike,  which  lasted  about  three  months,  and  work 
\»as  only  carried  on  at  the  mine  for  four  months  out  of  the 
six.  Nevertheless,  the  company  made  a  nett  profit  of  ;f29o,88i 
for  the  period,  as  against  2269,769  in  the  May  half-year,  and 
;,i  165,429  in  the  November,  1916,  half-year,  when  work  pro- 
ceeded more  smoothly.  Production  of  pig-iron  for  the  past 
three  half-years  has  been  as  follows  : — November,  1917,  41,351 
tons,  against  61,043  tons  for  May,  1917,  and  20,061  tons  in 
November,  1916.  For  steel  rails  the  figures  are  25,989,37,564, 
22,090  tons  respectively,  and  for  other  steel  products  16,934, 
18,036,  and  7,242  tons  respectively.  For  the  November  half- 
year  ;^iiS,ioo  was  distributed  in  dividends,  against  ;^59,05o 
in  the  May  half-year,  while  the  surplus  of  liquid  assets  was 
increased  from  £-}o-j,2<)i  to  ;f82i,5i3.  Reserve  funds  have  been 
increased  by  ;^i, 500,000  to  ;^i,gio,ooo,  by  appropriating  the 
former  amount  out  of  the  balance  of  ;f  1,734, 965  standing  to  the 
credit  of  profit  and  loss  account.  Reserves  used  in  the  com- 
pany's business  have  been  increased  from  ^^180,000  to 
;^'i, 744,000.  These  figures  alone  suffice  to  account  for  the 
recent  advance  in  the  shares,  quite  apart  from  the  prospect  of 
the  Federal  Government  taking  over  the  iron  and  steel  works 
in  connection  with  its  shipbuilding  programme.  It  is  intended 
in  future  to  present  the  reports  and  accounts  yearly  instead 
of  half-yearly. 

Irtysh  Cokpokation. — At  a  meeting  of  debenture-holders  of 
this  corporation,  held  this  week,  Mr.  Leslie  Urquhart  said  the 
board  anticipated  paying  the  next  half-yearly  instalment  of 
debenture  interest.  He  explained  that  Bolshevism  had  failed 
to  make  any  progress  in  the  district  where  the  corporation's 
properties  were  situated.  The  Ekibastus  property  was  practi- 
cally self-supporting,  and  at  Ridder  the  expenditure  would  be 
about  Rs.  25,000  monthly.  Mr.  Urquhart  then  proceeded  to 
explain  that  Trotsky  in  a  speech  at  Moscow  had  confessed  the 
failure  of  Bolshevism,  and  was  appealing  to  the  more  stable 
elements  in  Russia  to  combine  with  him  in  suppressing  the 
rascals  and  thieves  who  were  responsible  for  the  disorder  now- 
prevailing  in  Russia.  He  regarded  this  as  a  sign  of  a  coming 
change  in  Russia,  and  spoke  quite  optimistically  of  the  pros- 
pect of  foreign  interests  being  eventually  recognised  in  that 
country.  Mr.  Urquhart  knows  Russia  intimately,  and  his  views 
on  the  situation  are  therefore  based  on  personal  knowledge. 

Main  Colliery. — The  output  of  coal  in  1917  decreased  very 
considerably,  the  total  being  only  285,014  tons,  as  against 
574,613  tons  in  the  preceding  18  months,  being  equal  to  383,076 
tons  per  annum.  The  sum  of  ;i^9,ooo,  against  ;^35,ooo,  is  set 
aside  for  depreciation,  ;^io,ooo  is  placed  to  general  reserve, 
against  ^25,000,  and  after  bringing  in  an  amount  estimated  as 
recoverable  on  account  of  excess  profits  duty  provided  last  year, 
there  is  an  available  balance  of  ^^22,308.  A  final  dividend  of 
3  per  cent,  brings  the  total  distribution  up  to  6  per  cent., 
which  compares  with  10  per  cent.,  and  ^^8,508,  against  ;^7,3oo, 
is  carried  forward. 

Shamva  Mines. — The  report  for  the  quarter  ended  Decem- 
ber 31  shows  that  the  production  was  ^f  119,545,  the  profit  on 
working  being  ;^38,374.  Ore  reserves  have  been  increased  by 
50,000  tons  to  1,608,000  tons,  valued  at  4.4  dwts.  Developments 
on  the  eastern  section  continue  satisfactory,  and  have  enabled 
a  gross  tonnage  of  201,000  tons  to  be  developed.  In  the  main 
section  of  the  mine  stoping  operations  have  proved  an  addition 
to  the  strike  of  some  200  feet  at  the  Prospect  and  first  levels, 
bringing  these  to  1,140  feet  and  1,320  feet  respectively.  Work- 
ing costs  show  an  increase  of  3d.  per  ton,  as  compared  with  the 
previous  quarter,  due  chiefly  to  the  increased  price  of  stores.. 


COMPANY    RESULTS    IN     BRIEF. 


Name  and 

Accounting 

Period. 


Canadian  Investment  Co. 
(Dec.) 

Do Prev. 

lames  Cartland  and  Son 
(Dec.) 

Do ,...Prev. 

Palace  Hotel (Dec.) 

Do Prev. 

Pettigrew  &  Stephens(Feb.) 

Do Prev, 

Shotts  Iron  Co (Sept.) 

Do Prev. 

Scottish  Tube  Co.  .,(Dec.) 

Do Prev. 

Western  Mansions.  .(Dec) 

Do Prev. 


Gross 
Profit, 


36.940 
33 .060 


47,720 
41.430 


84,360 
84,820 
31.400 
30,720 


Nett 
Profit. 


18,990 
15,610 

10,840 

8,660 

1,300 

*i.530 

24,440 

23.530 

31.140 

32,290 

68,780 

48,600 

5.470 

5.680 


Total 
Re- 
serves. 


62,000 
60,000 

15.000 
10,000 

nil 

nil 

33.500 

28,500 

200,120 

163,120 

45,000 

35.000 

6,500 

5.500 


Divi- 
dend. 


% 

8 
8 

10 

5 
nil 
nil 

10 

25 
30 

74 

74 

3 

3 


Carriet? 
For- 
ward. 


9,890 
7,610 

10,900 

10,830 

1,300 

14.850 
i6,oco 
46,960 
42,980 
15.520 
15.580 
960 
1,100 


Loss. 


370 


TLbc  Jnvcetore'  IReview. 


April  13,  1918. 


DIVIDENDS     ANNOUNCED. 


Atlas  Assurance  Co. — I'or  191 7,  8s.  per  share,  of  which  3s. 
per  share,  less  tax,  was  paid  on  October  27.  The  balance  will 
be  paid   free  of  tax  on  and  after  the  30th  inst. 

African  City  Properties  Trust. — On  the  ordinary  shares  for 
1917,  of  IS.  per  share, T)eing  at  rate  of  5  per  cent,  per  annum 
(less  tax);  forward  ;^io,64o.  For  1916  the  dividend  was  3J 
per  cent. 

Alliance  Trust. — At  the  rate  of  19  per  cent,  per  annuni,  less 
tax,  same  as  a  year  ago. 

J.  and  J.  Baldwin  and  Partners. — On  the  preference  share 
at  rate  of  5  per  cent,  per  annum  for  half-year  to  April  30,  to 
be  paid  on  May  i. 

British  Westingljouse  Electric  and  Manufacturing  Co. — 7.J 
per  cent,  on  preference  sRares  for  year  ended   December  31. 

Canadian  Explosives. — ij  per  cent,  on  preferred  shares  for 
quarter  ended  March  31,  payable  April   15. 

Central  Uruguay  Northern  Extension  Railway  Co. — Interim 
for  half-year  ended  December  31  of  4.S.  per  share,  less  tax, 
being  at  rate  of  4  per  cent,   per  annum,  the  .same. 

Central  Uruguay  Railway  Co.  of  Montevideo. — Interim  for 
half-year  ended  December  31  on  5J  per  cent,  preference  shares. 
Central  Uruguay  Eastern  Extension  Railway. — Interim  for 
half-year  ended  December  31  of  4s.  per  share,  less  tax,  on 
ordinary  shares,  being  at  rate  of  4  per  cent,  per  annum,  again.st 
2i  per  cent. 

Dominion  Steel  Corporation. — No.  25  at  rate  of  r^  per  cent, 
on  the  preference  shares,  payable  May  i. 

Eley  Brothers. — At  the  rate  of  2s.,  and  a  bonus  at  the  r.ite 
of  IS.  per  share,  less  tax.  Warrants  will  be  posted  on  April  211. 
A  year  ago  was  the  same. 

Globe  and  Phoenix  Gold  Mining  Co. — Final  for  1917  of  is.  40!. 
per  share,  less  tax. 

Jorehaut  Tea  Co. — Interim  of  5  per  cent.,  free  of  tax.  for 
j'ear  1917,  the  same,  payable  on  April   19. 

Mayfield  Rubber  Plantations. — Final,  20  per  rent.,  with 
$90,000  forward. 

National  Bank  of  Australasia. — On  preference  and  ordinary 
shares  for  half-year  ended  March  31  a-l  rate  of  7  per  cent,  jier 
annum  ;  the  same  as  a  year  ago. 

New  Zealand  and  Australian  Land  Co. — Interim  for 
year  to  March  31,  1918,  on  the  ordinary  .stock  of  5  per  cent., 
free  of  tax,  the  same  as  a  year  ago. 

Ooregum  Gold  Mining  Company  of  India. — Balance  for 
1917  of  IS.  6d.  per  share,  less  tax,  on  preference  and  ordinary 
shares,  payable  April  27,  making  a  total  ^for  the  year  of  40 
per  cent,  on  pref.,  and  30  per  cent,  on  ord.  shares,  the  same 
as  a  year  ago. 

Peninsula  and  Oriental  Steam  Navigation  Co. — In- 
terim at  rate  of  12  per  cent,  per  annum  on  the  deferred  stock 
(free  of  tax)  for  half-year  ended  March  31,  the  same  as  a  year 
ago. 

Royal  Exchange  Assurance. — Further  7  per  cent.,  maki^ig  12 
per  cent.,  less  tax,  for  1917,  the  same  as  for  1916. 

Sao  Paulo  Tramway,  Light  and  Power  Co. — 2^  per 
cent,  on  the  common  stock,  payable  May  i.  the  .same  as  a  year 
ago. 

Tekka-Taiping. — is.  per  share,  less  tax,  payable  on  April  20. 
the  same  as  a  year  ago. 

Tremelbye  (Selangor)  Rubber  Co. — First  interim  of  15 
per  cent,  (less  tax)  (against  20  per  cent.)  on  account  of  the 
year  ending  June  30.     Warrants  will  be  posted  on  April  2*5 

Pettigrew  and  Stephens. — At  the  rate  of  12^  per  cent,  per 
annum,  free  of  tax,  for  the  year  (of  which  there  has  been  already 
paid  an  interim  dividend  of  10  per  cent,  for  the  half-year). 

United  States  and  South  American  Investment  Trust  Co. — 
At  the  rate  of  6  per  cent,  per  annum  for  half-year  ended 
April  4,  making  5  per  cent,  for  the  year,  the  same  as  la.st  year. 
Walker  and  Homfrays. — Interim  on  ordinary  shares  o'  7? 
per  cent,  (actual),  tax  free,  for  half-year  ended  March  31. 
Last  year  there  was  no  corresponding  interim,  but  later  two 
sums  were  paid  at  the  rate  of  15  per  cent,  per  annum  for  the 
newly  extended  financial  period  of  15  months. 


may  be,  but  as  the  restrictions  on  shipments  have  been  relaxed 
and  huge  slocks  of  pari  are  accumulating  in  Brazil,  it  is  more 
than  probable  that  the  attempt  to  control  the  market  with  a 
view  to  creating  fictitious  prices  will  end  in  disaster  if  it  doe^ 
not   first  of   all  dis.solve  in   laughter. 


Tea,  Oil  and   Rubber. 


We  are  now  beginning  to  .see  the  effect  of  the  R.G.A.  re- 
striction .scheme  on  outputs.  Certainly  if  it  is  desirable  to 
"  rest  "  the  trees  this  is  the  best  time  to  do  it,  but  it  must  be 
rather  alarming  to  shareholders  to  see,  for  instance,  that  in 
March  Highlands  reduced  the  output  from  121,000  lbs.  to 
46,460,  Anglo-Malay  from  125, kx)  lbs.  to  74,200,  Pataling  from 
54,600  lbs.  to  29,700,  London  Asiatic  from  128,750  lbs.  to 
70,200,  and  Grand  Centrals  from  314,250  lbs.  to  230,000.  These 
are  fairl)'  drastic  cuts,  and  considerably  exceed  the  20  per 
<ent.  reduction  demanded,  but  that  is  to  a  large  extent  merely 
a  seasonal  accident.  At  the  same  time  shareholders  must  re- 
member that  it  costs  practically  as  much  to  tap  a  tree  for 
2  lbs.  as  for  3  lbs.  or  more,  and  expenses  must  therefore  be 
relatively  much  higher  on  the  smaller  output.  Of  course,  some 
of  the  labour  force  might  be  dispensed  with,  but  that  is  the 
last  thing  most  estate  managers  would  care  to  try.  It  is  an 
Alice  in  Wonderland  sort  of  arrangement,  where  everything  is 
topsy-turvy,  and  we  canpot  pretend  to  forecast  what  the  result 


Rangoon  Para  Ki'bdkk  Estates,  Ltd. — Year  to  December  31  : 
Output,  362,580  lbs.,  an  increase  of  108,500  lbs.,  and  for  the 
current  year  the  estimate  is  400,000  lbs.  The  planted  area  has 
increased  17  acres  to  2,207  acres,  and  there  are  710  acres  in 
re.serve,  but  no  details  are  given  as  to  the  age  of  the  trees. 
Considerable  trouble  is  still  being  experienced  with  "  black 
thread"  disease,  59,000  out  of  183,000  trees  being  attacked  and 
having  to  be  rested  for  about  three  months.  Average  price 
obtained,  2s.  5.o9d.  against  2s.  9.98d.,  while  the  all-in  cost 
was  IS.  7.94d.  against  is.  5.24d.  Consequently,  although  gross 
receipts  increa.sed  £-j,ooo  to  ;^43,95o,  the  nett  profit  was  ;^4,ioi) 
less  at  ;f  13,820,  and  the  dividend  is  teduced  from  7i  per  cent, 
to  64  per  cent.,  leaving  ^^2,280  to  be  caxried  forward  against 
;^'i8<)  brought  in'.  There  is  no  reserve  fund,  and  ;^26,9oo  is 
repayable  to  the  vendors  in  respect  of  guaranteed  dividends. 
Costs  are  heavy,  and  it  would  have  been  prudent  to  cut  the 
dividend  more  severely,  especially  in  view  of  the  "  black 
thread  "  disease  and  the  fart  that  the  labour  force  has  .suffered 
very  much   from  malarial  fever. 

Tboi.ak  Plantations,  Ltd.— Year  to  September  30  ;  Output 
amounted  to  332,000  lbs.,  an  increase  of  70,000  lbs.,  but  for 
the  current  year,  under  the  restriction  arrangement,  it  is  esti- 
mated at  only  267,300  lbs.  Average  price  obtained  was  2s.  6d., 
against  2s.  iid.,  and  the  cost,  exclusive  of  depreciation,  was 
ii|d.,  against  is.  2id.  Nett  profit  amounted  to  ;^2o,200,  a 
decrease  of  ;f  1,000,  and  the  dividend  of  20  per  cent,  is  re- 
peated, leaving  jf  18,(^5  to  be  carried  forward,  subject  to 
excess  duty,  &c.,  which  last  year  absorbed  about  ^f  15,000.  The 
cultivated  area  is  600  acres,  all  in  bearing,  the  last  75  acres 
having  been  planted  in  191 1.  Average  yield  is  very  good, 
being  over  550  lbs.  per  acre. 

SoE.MBER  AjoE  RuBBKR  EsT.iTES,  Ltu. — Y'ear  to  September  30  : 
Output  of  rubber,  148,940  lbs.,  an  increase  of  48,900  lbs.,  and 
of  coffee,  1,016  cwts.,  a  decrease  of  2,120  cwts.  Average  price 
of  rubber  was  2S.  6.95d.,  against  2s.  7.43d.,  and  of  cofiee. 
41S.  iid.,  against  56s.  2d.  Details  of  costs  are  omitted.  Nett 
profits  amounted  to  ;f  5,820,  a  decrease  of  ';f  660,  and  the  divi- 
dend is  reduced  from  10  per  cent,  to  fi  per  cent.,  leaving 
^1,750  to  be  carried  forward,  subject  to  Nederlands  Indies 
war  tax,  if  any.  Interplanted  coffee  is  being  cut  out,  and  no 
improvement  in  the  revenue  from  this  product  is  anticipated 
under   present  war   conditions. 

Cakey  United  Rudheh  Estates,  Ltd. — Year  to  September  30  : 
Output,  322,275  lbs.,  an  increase  of  105,000  lbs.  Average  price, 
2s.  5.72d.,  against  2s.  9.22d.  ;  cost,  exclusive  of  depreciation, 
IS.  o.o7d.,  against  g.^zd.  Nett  profit,  ^19,900,  practically  the 
same  as  last  year,  and  the  dividend  of  10  per  cent,  is  repeated, 
leaving  £-;,$bo.  or  ;f2,6oo  more,  to  be  carried  forward.  The 
area  under  rubber  is  3,330  acres,  mostly  planted  in  1912-13,  so 
th;it  only  a  portion  of  the  trees  are  in  full  bearing.  For  the 
current  year  the  "restricted"  output  is  estimated  at 
405,000  lbs.  There  are  430  acres  under  coconuts,  but  the 
revenue  from  this  source  is  negligible  at  present. 

Ampat  (Sumatra)  Rubber  Est.\te,  Ltd.— Year  to  Septem- 
ber 30  :  Output,  214,970  lbs.,  an  increase  of  58,000  lbs.  ; 
restricted  estimate  for  current  year,  184,000  lbs.  Average  price, 
2S.  6.59d.,  against  2S.  8.45d. ;  all-in  cost,  is.  3.53d.,  against 
IS.  i.35d.  Gross  receipts,  ^27.400,  an  increase  of  ^6,200;  nett 
profit  ;rfi3,i7o,  increase  ;f  1,300.  The  dividend  of  25  per  cent, 
is  repeated,  and  ;^i,ooo  more  at  ;^4,ooo  is  placed  to  reserve, 
raising  it  to  ;^9,ooo.  Carried  forward,  ^'2,640,  an  increase  of 
;f  1,000.  Planted  area,  1,076  acres,  of  which  300  acres  have 
been  jJIaiited  fn  the  past  two  years,  and  there  are  over  2,000 
acres  in  reserve,  so  that  there  is  plenty  of  scope  for  develop- 
ment. 

Tamianc  Rubber  Estates,  Ltd. — Y'ear  to  September  30,  output 
782.000  lbs.,  an  increase  of  235,000  lbs.,  and  for  the  current  year 
the  estimate  is  900,000  lbs.,"  subject  to  restriction.  Average 
price  realised  was  2s.  6.iid..  against  2S.  7.68d..  but  no  informa- 
tion is  given  as  to  costs.  Gross  proceeds  amounted  to  ;f 87,500, 
an  increase  of  ^^24.000,  and  the  nett  profit  was  ;f43,30o.  increase 
^17,000.  Dividend  is  retained  at  17^  per  cent.,  tax  free,  equal 
to  over  23  per  cent.,  less  tax,  and  /5.000.  against  ;f7,5<w,  is  set 
aside  for  development  reserve,  leaving  /16.250,  or  ;^i3-35» 
more,  to  be  carried  forward,  subject  to  war  taxes.  It  is  stated 
that  the  number  of  trees  in  tapping  was  223,400,  an  increa.se 
of  25,000,  and  the  average  yield  was  3.70  lbs.,  against  3.28  lbs., 
equal  to  328  lbs.,  against  300  lbs.,  per  acre.  The  company  has 
still  a  large  undeveloped  area  amounting  to  some  5,000  acres, 
and  it  ought  to  do  well  in  the  future,  but  the  report  would  be 
.ill  the  better  for  a  few  additional  details  as  to  cost  of  produc- 
tion and  the  age  of  the  trees. 


The  London  Provincial  and  Southwestern  Bank,  Ltd..  an- 
nounce that  their  board  have  appointed  Mr.  Percy  C.  Harte  as 
treasurer  to  the  bank.  Mr.  J.  ].  Spear  will  be  sole  City  manager, 
with  Mr.  F.  J.  Smith  assistant  City  manager. 

With  reference  to  the  Cuban  Ports  Co.  settlement,  a  decree 
has  now  been  published  by  the  Cuban  Government  confirming 
the  terms  arranged  with  Messrs.  Sperling  and  Co.,  which  have 
already  been  announced. 


April  13,  191 8. 


tTbe  Jnveetots'  IReview. 


371 


COMPANY  MEETINGS. 


LAMPORT    AND    HOLT.    LTD. 

THE    GOVERN'MENT   AND    FREIGHT   RATES. 

The  sixth  ordinary  general  meeting  of  Lamport  and  Holt,  Ltd., 
was  held  on  Thursday,  at  the  company's  office,  36,  Lime  Street, 
E.G.,  Sir  Owen  I'hili'pps,  K.C.M.G.,  M.T.  (the  chairman),  pre- 
jiiding. 

The  Secretary  (Mr.  W.  J.  Moynihan)  having  read  the  notice 
convening  the  meeting   and  the  report   of  the  auditors, 

The  Chairman  said  :  Crentlemen,  the  accounts  set  out  the  posi- 
tion clearly,  and  do  not  call  for  special  comments.  The  com- 
pany's paid-up  share  and  debenture  capital  and  reserves  now 
amount  to  over  3^  millions  sterling,  and  the  fleet  stands  at  a 
moderate  figure  in  the  company's  books.  We  earned  less  profit 
than  in  igi6,  because  the  Government  took  over  the  remainder 
of  our  fleet  at  Hlue  Book  rates.  We  have,  of  course,  paid  less 
in  excess  profits  duty,  but  the  Government  are  receiving  the 
benefit  of  the  great  increase  they  have  made  in  all  rates  of 
freight  since  they  took  over  the  control  of  British  shipping. 

The  War  and  tjik  ConrANv's  Flket. 
The  whole  of  our  resources  are  engaged,  directly  or  indirectly. 
in  aiding  the  prosecution  of  the  war  ;  directly,  by  means  of  that 
part  of  our  fleet  serving  as  transports,  &c.  ;  indirectly,  by  our 
vessels  carrying  food  and  other  essential  commodities  for  our 
own  and  our  .Allies'  military  and  civil  needs.  Our  time  and 
attention  are  taken  up  with  managing  the  business — in  con- 
junction with  the  Ministry  of  Shipping— to  the  utmost  national 
advantage,  as  called  for  by  the  critical  days  through  which  we 
are  passing.  Much  of  our  normal  activity  is  necessarily  sus- 
pended, such  as  the  continuous  expansion  of  our  various  trades, 
especially  on  those  routes  where  by  enterprise  and  foresight 
this  company  had'  through  many  strenuous  years  created  and 
built  up  steamship  connections  which  have  made  the  name  of 
Lamport  and  Holt  a  household  word  in  far  distant  parts  of  the 
world.  Whilst  the  concentration  of  our  resources  and  energies, 
for  the  time  being,  upon  the  one  thing  that  matter.s — the  winning 
of  the  war — has  inevitably  involved  considerable  sacrifices  and 
the  temporary  neglect  of  important  trade  connections,  it  was  a 
very  fortunate  thing,  in  my  opinion,  for  the  Empire  and  for 
the  Allied  cause  that  we  and  other  great  British  liner  steamship 
companies  had  embarked  our  enterprise  and  capital  in  creating 
shipping  facilities  serving  countries  outside  the  British  Empire 
— such  as  the  link  we  formed  many  years  ago  between  the  River 
Plate,  Brazil,  and  North  America.  This  latter  trade,  as  an 
example,  supported  a  fleet  of  steamers  which  have  proved  of 
inestimable  value  to  the  .Allied  cause  in  time  of  war. 

The  Sugcestkd  Natiox.\i,is.\tion  of  British  Shippi.vg. 
It  has  been  suggested  that  after  the  war  British  shipping 
should  be  nationalised  and  become  a  State  industry  or  mono- 
poly. Such  a  course  would,  I  am  convinced,  lead  to  the  certain 
loss  of  our  maritime  supremacy,  which,  as  an  island  people,  is 
a  vital  necessity,  if  we  are  to  continue  to  hold  the  place  in  the 
world  we  have  held  in  the  past.  .\nd  for  this  reason — that, 
whilst  the  nation  might  possibly  with  advantage  (though  even 
here  opinions  naturally  differ)  nationalise  railways,  gas,  elec- 
tricity, and  similar  public  services,  because  they  are  internal. 
and  the  Government  can  easily  protect  them  from  outside  inter- 
ference and  competition,  the  sea  is,  and  always  will  be,  open  to 
all  the  world,  so  that  shipping  is  in  a  very  different  position, 
and  is  the  very  last  thing  to  which  the  principle  of  State 
ownership  could  be  safely  applied.  This  country  hitherto  has 
been  the  great  ocean  carrier  of  the  world,  transporting  produce 
and  manufactures  cheaply,  not  only  to  and  from  our  own 
shores,  but  also  between  one  foreign  country  and  another.  This 
position  has  enabled  us  in  war-time  to  provide  the  British 
Navy  with  an  immense  and  powerful  auxiliary,  and  to  bring 
overseas  troops,   munitions,  foodstuffs,   &c. 

Foreign  Competition  After  the  War. — The  German 
Mercantile  Marine. 

One  thing  is  certain,  and  that  is  that  after  the  war  foreign 
competition  will  be  keener  than  ever  before.  Neutrals  especially 
-have  huge  sums  in  reserve  wherewith  to  build  new  fleets  or  to 
enlarge  existing  ones,  whilst  we  know  that  Germany  is  making 
preparations  on  an  immense  scale  to  contest  our  maritime 
supremacy  after  the  war.  The  Bill  for  the  restoration  of  the 
German  mercantile  marine,  which  passed  through  the  Reich.stag 
last  November,  provided  for  money  grants  to  shipowners  for  the 
construction  of  new  tonnage  amounting,  on  the  most  moderate 
computation,  to  fifty  millions  sterling.  In  reply  to  a  suggestion 
then  made  that  shipping  .should  be  nationalised,  the  German 
Government  stated  that  "  nothing  was  less  suited  than  shipping 
to  form  a  Government  monopoly,  and  that  the  effect  of  a 
Government  monopoly  would  be  to  threaten  German  trade  with 
the  loss  of  the  international  possibilities  of  expansion  upon 
which  its  greatness  has  been  based." 

I  therefore  anticipate  for  the  British  mercantile  marine  a 
very  acute  struggle  if  it  is  to  hold  its  own.  Can  the  nation, 
under  such  circumstances,  look  with  confidence  to  doing  so  if 
our  shipping  is  to  be  taken  over  and  administered  by  a  Govern- 
ment Department?  I  personally  hold  a  high  opinion  of  British 
Civil  .servants,  but  is  any  Government  Department  likely  to 
provide  for,  build  up,  and  maintain,  in  good  years  and  bad 
years,  often  at  heavy  loss  year  after  year,  such  services  as 
Lamport  and   Molt  have  fought  for  and   held  ?     I  do  not  con- 


sider it  probable,  or  even  possible.  The  war  has  shown  the 
country  that  many  good  business  men  make  very  second-rate 
officials,  whilst  the  training  of  our  ('ivil  Service — which  service 
IS,  I  believe,  the  best  in  the  world — is  not  the  best  school  for 
a  business  man.  Therefore,  I  liope  the  British  shipowners  will, 
so  soon  as  circumstances  allow,  be  permitted  to  continue,  as  in 
the  past,  to  use  their  experience,  initiative,  and  energy  in 
maintaining,  as  I  believe  they  can  and  will,  the  position  in 
the  world's  ocean  trades  which  prior  to  the  war  they  had  won. 

The  Submarine  and  Oir  Shipping   Losses. 

The  tremendous  events  of  the  last  few  weeks  on  the  Western 
front  have  tended  somewhat  to  obscure  the  equally  vit£d  issue 
of  the  submarine.  We  have  had  a  statement  of  the  actual 
position  from  the  First  Lord  of  the  Admiralty,  and  the  country 
now  knows  that  the  losses  of  our  merchant  ships  are  greater 
than  the  replacements,  so  that  month  by  month  our  tonnage  is 
diminishing,  and  this  at  a  time  when  it  is  more  than  ever 
essential  to  the  Allied  cause.  We  should  have  great  difficulty 
in  maintaining  our  own  effort  in  France  unless  the  submarine 
is  "held"  and,  if  possible,  mastered.  I  still  think  this  can 
be  done  if  invention  is  given  full  scope  and  adequate  encour- 
agement. The  Navy  has  done  splendidly  in  making  the  exist- 
ence of  enemy  submarines  a  most  precarious  one.  But  the 
balance  is  still  against  us,  and  it  is  only  now  that  the 
Government — after  repeated  warnings  from  shipowners — has 
fully  realised  that  we  must  have  ships,  more  ships,  and  still 
more   ships. 

Lord   Pirrie  .and   Merchant   Shipbuilding. 

In  this  connection,  as  you  are  aware,  our  colleague.  Lord 
Pirrie,  has  recently  undertaken  the  duties  of  Controller- 
General  of  Merchant  Shipbuilding.  We  all  admire  the  courage 
and  patriotism  which  have  led  him  to  assume  such  heavy  re- 
sponsibilities at  a  time  of  life  when  many  men  look  for  less 
strenuous  days.  I  am  confident  that  the  result  of  the  applica- 
tion of  his  unique  experience,  skill  and  driving  power  wijl  be 
manife.st  before  long  in  a  great  speeding  up  of  the  prciduc- 
tion  of  merchant  ships.  Lord  Pirrie  does  not  cease  to  be  a 
director  of  this  company,  but  naturally  his  time  and  attention 
will  be  entirely  devoted  to  his  new  duties,  and  the  board  have 
passed  a  resolution  freeing  him  from  attendance  at  our  board 
meetings  whilst  he  holds  the  important  position  of  Controller- 
General  of   Merchant   Shipbuilding. 

Large  Interests  Acquired. 

Notwithstanding  the  .submarine  peril,  I  am  oleased  to  say 
that  the  company's  fleet  is  larger  now  than  on  August  4,  1914. 
In  addition  to  more  than  maintaining  our  fleet  intact,  we  have 
during  the  year  acquired  a  large  interest,  together  with  our 
associated  shipping  companies,  in  the  Argentine  Navigation 
Co.  (Nicolas  Mihanovich,  Ltd.).  with  which  company  one  of 
your  managing  directors  (Mr.  Arthur  Cook)  has  been  con- 
nected for  many  years.  We  have  also  recently  acquired  a  con- 
trolling interest  in  Archibald  McMillan  and  Sons,  Ltd.,  an 
old-established  shipbuilding  company  at  Dumbarton,  which 
has  built  a  number  of  our  cargo  steamers  in  the  past.  The 
active  management  of  this  business  will,  I  am  pleased  to  say, 
continue  in  the  able  hands  of  Mr.   J.   Garrick. 

The  Services  of  the   Mercantile   Marine. 

We  all  admire  the  gallantry  of  our  men  in  France,  but  the 
gallantry  of  the  British  merchant  seaman  has  also  won  our 
admiration,  and  the  country  is  now  beginning  to  realise  the 
invaluable  services  rendered  to  the  nation  by  the  mercantile 
marine.  The  company's  staff  have  carried  on  their  work 
under  considerable  difficulties,  and  our  thanks  are  also  due 
to  them  and  to  our  managing  directors  (Mr.  George  Melly 
and  Mr.  Arthur  Cook)  for  the  way  in  which  they  have  looked 
after  the  company's  interests  in  these  difficult  times.  The 
board,  in  addition  to  their  usual  contributions  to  the  Lamport 
and  Holt  Superannuation  Fund  Association,  I  have  pleasure 
in  stating,  have  again  made  a  special  donation  of  ;^io,ooo  to 
the  fund. 

I  now  beg  to  move  : — "  That  the  report  of  the  directors  and 
the  accounts  and  balance-sheet  submitted  to  this  meeting  be 
and  the  same  are  hereby  received  and  adopted,  and  that  a 
dividend  of  10  per  cent,  per  annum  (less  income-tax)  for  the 
year  ended  December  31,  1917,  be  and  the  same  is  hereby 
declared." 

Mr.  Arthur  Cook  seconded  the  resolution,  which  was  carried 
unanimously. 

The  Chairman  next  proposed  the  re-election  of  Mr.  Alfred  S. 
Williams  as  a  director  of  the  company. 

Mr.  George  H.  Melly  seconded  the  motion,  which  was 
unanimously  adopted. 

On  the  proposition  of  Mr.  A.  H.  Bennett,  seconded  by  Mr. 
-Mex.  Lee,  Messrs.  Price,  Waterhouse  and  Co.  were  re- 
appointed auditors,  and  the  proceedings  then  terminated. 

NATIONAL    BANK    OF    INDIA. 

The  ordinary  general  meeting  of  shareholders  of  the  National 
Bank  of  India,  Ltd.,  was  held  on  Monday  at  the  Wesleyan 
Hall,  Bishopsgate,  Mr.  Robert  Williamson,  the  deputy  chair- 
man, presiding. 

The  General  Manager  (Mr.  H.  Chalmers)  having  read  Uie 
notice  convening  the  meeting  and  the  auditors'  certificate. 

The  Chairman  said  :  Before  dealing  with  the  business  which 
has  brought  us  together  here  this  forenoon,  I  wish  to  tell 
you,  with  much  regret,  that  our  chairman,  owing  to 
illness,  "s  not  able  to  be  with  us.  Those  of  you  who 
know    Mr.     Campbell    and    remember    his    activities,    extend- 


372 


She  3iivc8tor6'  IRevtew, 


April  13,  1918. 


ing  over  40  years,  in  furthering  the  interests  of  this  institu- 
tion, to  our  very  great  advantage,  will,  I  ajn  sure,  appre- 
ciate how  deeply  he  himself  deplores  his  enforced  absence 
from  this  meeting  of  shareholders.  It  is  the  more  regrettable, 
too,  because  the  balance-sheet  now  before  you  is  the  best  ever 
produced  in  our  history,  and  there  is  the  further  point  that 
to-day  is  the  only  occasion  over  that  long  period  of  years  that 
he  has  not  been  present  at  these  annual  gatherings.  In  looking 
through  the  balance-sheet  I  see  there  are  some  items  on  both 
sides  of  the  account  to  which  I  should  make  special  reference. 
On  the  debit  side  there  is  a  further  increase  in  bills  payable, 
which,  as  the  chairman  told  you  a  year  ago,  are  mainly  drafts 
drawn  by  our  branch  offices  on  London,  and  this  increase,  as 
he  then  explained,  is  due  solely  to  the  irregularity  in  the 
arrival  of  mails  from  the  East,  which  implies  a  larger  volume 
of  bills  on  the  water.  Then,  again,  we  have  a  marked  and 
favourable  change  in  our  deposits  from  ;£i9.,SS<,.978  at  the  end 
of  1916  to  ;^24,685,344,  or  an  increase  of  i^S, 1.33, 366.  More- 
over, this  increase  follows  on  a  similar  movement  in  1916  over 
■9'S  of  >£^3. '00,000.  As  regards  the  1917  figures,  I  find  there 
is  improvement  pretty  well  at  all  our  chief  branch  oflices,  where 
much  wealth  exists,  largely,  no  doubt,  owing  to  the  continued 
prosperity  of  local  industries  and  undertakings.  On  the  credit 
.side  we  have  an  increase  in  cash  of  practically  ^2,500,000  and 
of  the  same  amount  in  bills  of  exchange,  including  Treasury 
bills,  and  these  changes  combine  to  bring  up  the  total  of  the 
balance-sheet  to  ;^ 29,716,621,  as  compared  with  ^^24,058,456  at 
December  31,  1916.  In  Bombay  cotton  manufacturing  is 
doing  extremely  well,  notwithstanding  the  high  price  of 
the  raw  material.  A  great  scheme  for  generating  elec- 
tricity to  supply,  amongst  other  things,  motive  power  to 
the  cotton  mills  has  come  into  existence  after  some  years 
of  preparation,  and  paying  handsomely,  and,  finally,  the 
enterprise  and  push  of  the  Bombay  merchants,  under  the 
lead  of  Messrs.  Tata,  Sons  and  Co.,  a  few  years  ago  over- 
flowed into  Bengal,  and  there  has  been  established  and 
brought  into  active  operation  there  an  immense  iron  and  steel 
producing  concern,  with  a  huge  capital,  which  is  yielding  very 
large  profits.  As  to  Calcutta,  the  profitable  character  of  the 
jute  manufacturing  industry,  which  has  been  most  marked  for 
many  years  past,  continues  unabated.  I  well  remember  the 
years  when  there  were  difficulties  in  selling  profitably  the  pro- 
duct of  10,000  looms  and  the  factories  were  being  run  on  short 
time.  Now  I  suppose  there  are  approximately  40,000  looms  all 
earning  large  profits,  whilst  further  extensions  are,  I  believe, 
in  hand.  The  coal  trade  is  also  prosperous,  although  ham- 
pered by  scarcity  of  railway  transport  facilities,  and,  of 
course,  shortness  of  shipping.  The  war  has  affected  the  tea 
industry,  which  for  many  years  past  has  been  yielding  hand- 
some returns  to  investors,  probably  more  than  any  other,  in 
making  the  realisation  of  the  crops  extremely  difficult,  but  this 
difficulty  may  lead  to  the  opening  up  of  new  outlets  for  the 
beverage,  to  the  benefit  of  all  '^concerned  in  this  important 
trade.  .^nd  the  same  remarks  apply  to  the  similar  trade 
carried  on  in  the  island  of  Ceylon.  There,  however,  in  addi- 
tion to  tea,  a  very  large  area  of  land  is  under  cultivation  in 
rubber,  which  has  given  very  fine  profits. 

Owing  to  this  dreadful  war,  in  which  we  are  still  so  deeply 
involved,  our  business  is  carried  on  under  very  great  diffi- 
culties, which  unfortunately  tend  to  increase  rather  than 
diminish.  Xotwithstanding  all  the  troubles,  however,  the 
year  1917  as  regards  profit  is  our  best  in  the  history  of 
the  bank._  V^e  made  a  gross  profit  of  ;^686,654,  compared 
with  ^569,692  in  1916,  and  after  deducting  management 
expenses  and  making  provision  for  bad  and  doubtful  debts  and 
paying  bonus  to  our  staff,  we  have  a  net  profit  for  the  year  of 
;^353,i39,  or  ;^55,666  more  than  in  1916,  to  which  there  falls 
to  be  added  ;f  106,689  brought  forward  from  our  last  statement 
of  accounts,  so  that  we  have  ;£459,828  at  our  disposal  to-day. 
The  chairman  told  you  a  year  ago  when  he  was  addressing 
you  that  you  were  not  to  be  surprised  or  disappointed  if  the 
results  for  the  year  1917  should  show  some  little  falling  off 
ccHnpared  with  1916,  and  he  gave  reasons  for  saying  so.  Fortu- 
nately the  results  are  much  better  than  we  anticipated,  but  un- 
fortunately the  difficulties  of  which  he  spoke  still  exist  and 
have  indeed  increased.  They  may  be  summed  up  in  a  few 
words — shor{  supply  of  tonnage,  tie  high  price  of  silver  and 
scarcity  of  rupees,  an  insufficient  supply  of  India  Council 
bills,  making  it  difficult  for  the  banks  to  return  to  the  East 
money  brought  home  from'  there.  And  although  we  ourselves 
are  inclined  sometimes  to  complain  that  our  bank,  whose  busi- 
ness is  concerned  in  operating  solely  where  alone  the  silver 
rupee  is  current,  for  we  have  no  branches  in  the  Straits  and 
in  China,  does  not  get  its  proper  share  of  the  India  Council 
bills,  we  must  recognise  the  difficulties  of  the  India  Office 
authorities  and  be  thankful  for  what  they  have  done  and  are 
doing  for  us.  Of  course,  our  first  and  paramount  duty  is  to 
finance  bills  of  national  importance,  and  that  we  are  doing  to 
the  best  of  our  ability  consonant  with  safety  to  ourselves.  We 
are  also  doing  our  best  to  meet  the  legitimate  requirements  of 
our  old  and  valued  constituents. 

You  will  see  from  our  report  how  the  directors  propose  to 
dispose  of  the  profits.  An  interim  dividend  aggregating 
;^8o,ooo  for  the  htlf-year  ending  June  30  last  has  already 
been  paid  to  you,  and  we  propose  now  to  pay  a  further  like 
dividend,  together  with  a  bonus  of  4  per  cent,  (or  10s.  per 
share),  making  altogether  20  per  cent.,  and,  what  is  importan'., 
free  of  income-tax.  This  would  be  a  dividend  of  26^  per 
cent.,  less  income-tax.  We  also  propose  to  add  ;f  loojooo  to  the 
reserve-  fund,  bringing  up  the  total  to  ;f  1,350,000,  to  place 
;^io,ooo  to  officers'  pension  fund,  to  write  down  our  property 


account  by  ;^io,ooo,  and  tocarry  forward  ^£139,828,  or  £33,'y}. 
more  than  we  brought  into  the  year's  accounts.  I  express 
the  hope  that  these  proposals  will  have  your  approval  to-day. 
It  is  not  many  years  since  we  were  working  faaiid  to  raise  our 
reserve  fund  to  the  level  of  our  increased  capiiial  of 
;^i, 000,000,  and  I  direc*  your  attention  to  the  fact  that  with 
the  addition  which  we  are  making  to  it  to-day  that  fund  will 
stand  ^350,000  in  excess  of  the  capital,  and  whilst  doing  this 
we  have  not  failed  to  write  down  the  value  of  our  securities,  to 
every  year  writo  down  our  property  account,  continue  payments 
of  increasing  dividends,  continue  our  contributions  to  the  pen- 
sion fund,  and,  lastly,  in  no  year  that  I  can  remember  have 
we  forgoiMen  a  bonus  to  our  staff.  It  gives  me  pleasure  to  say 
that  having  in  previous  years  made  what  I  believe  to  be 
ample  provision  for  pos.sibIe  losses  consequent  on  the  war, 
and  having  also  written  down  our  investments  to  prices  below 
their  present  market  value,  wo  had  nothing  to  do  in  this  way 
as  regards  the  year  1917,  and  I  hope  never  shall  again.  With 
regard  to  the  pension  fund,  to  which,  as  I  have  just  said,  we 
propose  to  contribute  ;f  10,000,  I  wish  to  tell  you  tha/t  last  year 
the  board  decided  that  we  might  make  a  change  in  the  direc- 
tion of  relieving  our  staff  from  further  contributions  to  it,  and, 
accordingly,  as  and  from  July  i,  1917,  the  bank  will  carry  on 
its  own  shoulders  the  maintenance  of  this  fund.  Further,  wo 
have  started  as  from  same  date  an  officers'  provident  fund,  to 
which  both  the  staff  and  bank  will  contribute.  Our  share,  we 
estinuite,  will  amount  to  about  ;fio,ooo  a  year,  which  I  am 
sure  the  shareholders  will  not  grudge.  We  are  most  fortunate 
in  possessing  an  excellent  staff,  and  these  changes  are  designed 
to  help  them  to  view  the  future  with  a  brighter  outlook,  and 
at  the  .same  timo  to  be  a  recognition  of  their  good  work  for  us. 
As  regards  our  staff  serving  in  the  Army,  I  much  regret  to 
inform  you  that  since  the  chairman  spoke  to  you  at  this  time 
last  year  we  have  to  mourn  the  loss  of  11  fine  young  fellows 
killed  in  fighting,  and  we  tender  to  their  sorrowing  relatives 
our  dee,pest  sympathy.  This  increases  the  number  of  those  who 
have  been  taken  from  us  since  the  war  began  to  28.  I  might 
interject  here  that  the  number  we  lost  was  one  less  than  28 
up  to  Thursday  of  lasit  week,  when  I  noticed  in  the  Times 
the  death  of  Captain  Brand,  M.C.,  one  of  our  ablest  young 
men,  the  accountant  at  our  office  in  Colombo,  where  he  w;is 
very  much  liked.  Kight  of  our  men  have  been  discharged 
from  the  Army,  and  of  the  148  now  in  the  Service,  two  are 
prisoners  of  war,  83  hold  coramtissioned  rank  (one  the  rank  of 
acting-major,  10  captains),  and  65  are  non-commissioned 
officers!  and  privates.  As  to  distinctions,  seven  officers  have 
gained  the  Military  Cro.ss,  and  several  meo  have  been  men- 
tioned in  dispatches.  The  strain  on  those  of  the  London  staff 
who  for  one  reason  or  another  remain  here  at  work  continues, 
therefore,  to  be  heavy,  but  is  bravely  and  cheerfully  borne. 
1  am  glad  to  .s.ay  that  the  services  of  our  lady  assistants  con- 
tinue to  be  very  satisfactory. 

Ijasit  year  Mr.  Campbell  spoke  to  you  of  the  great  War 
Loan  floated  early  in  1917,  and  of  its  unique  success.  May 
I  remind  you  that  the  Chancellor  of  the  Exchequer's  favouretf 
mpethod  of  now  borrowing  money  is  by  the  means  of  5  p*  r 
cent.  National  War  Bonds,  repayable  at  a  premium  in  five, 
seven,  and  10  years,  and  the  sum  so  far  obtained  thnough  that 
medium  has  already  reached  the  great  total  of  about 
;f 614,000, 000?  The  security  is  in  every  respect  first  class,  and, 
inasmuch  as  the  Government  needs  contributions  of  25  mil- 
lions or  more  a  week,  I  ask  all  our  shareholders  when  they 
receive  their  dividend  warrants  to  bear  this  in  mind,  and  to 
do  their  bit,  for  money  is  essential  to  our  and  our  Allies  bring- 
ing to  a  victorious  conclusion  this  ghastly  war  in  which  we 
are  so  heavily  engaged. 

Mr.  Robert  Miller  seconded  the  motion,  which  was  carried 
unanimously. 


CHARTERED   BANK  OF  INDIA,  AUSTRALIA, 
AND  CHINA. 

The  sixty-fourth  ordinary  general  meeting  of  the  shareholders 
of  the  Chartered  Bank  of  India.  Australia  and  China  was  held 
on  Wednesday  on  the  hank's  premises  at  38,  Bishopsgate,  E.C., 
Sir  Montagu  Cornish  Turner  (the  chairman)  presiding. 

Mr.  T.  H.  Whitehead  (one  of  the  managers)  having  read  the 
notice  convening  the  meeting  and  the  report  of  the  auditors. 

The  Chairman  said  :  The  report  which  I  have  the  pleasure  to 
submit  for  your  approval  to-day  will  doubtless  be  considered 
satisfactory  in  view  of  the  prevailing  conditions  of  stress  and 
trouble  under  which  we  have  to  conduct  banking  operations. 
Our  chief  aim  and  object  has  been,  in  co-operation  with  other 
exchange  banks,  to  finance,  to  the  utmost  limit  of  our  resources, 
shipments  of  national  importance  from  Eastern  ports  to  this 
country.  To  this  end  the  Secretary  of  State  and  the  Government 
of  India  (as  represented  by  the  Food  Commissioners  at  home 
and  in  India)  have  called  upon  the  services  of  the  exchange 
banks,  who  have  loyally  responded,  and,  we  believe,  have  earned 
the  approval  of  those  in  authority.  With  this  enormous  drain 
on  our  resources  we  may  not  have  been  able  at  all  times  to 
satisfy  the  full  requirements  of  our  friends  and  customers  in  the 
ordinary  course  of  business,  but  we  have  done  our  best,  in  spite 
of  lessened  Council  assistance.  We  have  all  recognised  that  in 
war  times  the  demands  of  the  nation  are  of  paramount  import- 
ance and  must  be  met  first  and  foremost.  As  might  be  expected, 
exports  from  this  side  to  the  East  and  Far  East  have  declined 
considerably,  which,  by  reducing  the  demand  for  bank  remit- 
tances, have  further  increased  our  difficulties  and  have  forced 
exchange  banks  to  rely  more  than  ever  on  Council  bills  for 
laying  down  funds  on  the  other  side.    All  engaged  in  business 


April  13,  1918. 


Ubc  Jnvestors'  IReview. 


373 


— exporters,  importers,  and  dealers — ^have  much  to  contend  with, 
but  we  can  only  look  forward  to  the  time  when  war  has  ceased 
and  trade  has  resumed  its  normal  course.  I  might  also  refer 
to  the  scarcity  of  tonnage,  which  restricts  operations  and  is  felt 
at  all  points  alike.  That,  unfortunately,  is  a  difficulty  which  is 
likely  to  increase  rather  than  to  diminish  in  the  next  few 
months.  As  regards  our  business  in  India,  it  is  satisfactory  to 
note  that  the  crop  reports  up  to  date  are  most  satisfactory.  The 
area  under  cultivation  in  the  Punjaub  has  increased ;  rain, 
which  was  needed,  has  fallen,  and  at  present  we  may  look 
forward  to  bumper  crops.  India,  as  a  whole,  is  in  a  state  of 
great  prosperity.  Her  industries  are  thriving  and  her  revenues 
are  increasing.  During  the  past  few  months  changes  hav, 
occurred  both  in  the  court  of  directors  and  in  the  head  office 
management.  Our  very  esteemed  friend  and  colleague.  Sir 
Henry  Cunningham,  has  thought  it  right,  in  the  interests  of 
the  bank,  to  resign  his  seat  on  the  board  owing  to  indifferent 
health.  Sir  Henry  has  been  a  member  of  the  board  for  the  past 
28  years,  and,  by  his  courteous  conduct,  devotion,  and  unfailing 
loyalty  to  the  bank  has  won  the  friendship  and  esteem  of  all  his 
colleagues  on  the  board  and  of  the  managerial  staff.  We  part 
with  great  regret.  Sir  Duncan  Carmichael  has  been,  subject  to 
your  confirmation  to-day,  elected  to  the  vacant  seat  on  the  board. 
Sir  Duncan  lately  retired  from  India  after  a  most  successful 
career  in  the  field  of  commerce.  He  has  ably  filled  the  important 
post  of  president  of  the  Bank  of  Bengal,  and  also  other  public 
offices,  both  in  Bombay  and  Calcutta.  I  am  confident  that  Sir 
Duncan  will  add  considerable  strength  to  the  board  of  the  bank. 
As  regards  the  staff,  my  first  duty  must  be  to  refer  to  the  most 
regrettable  and  untimely  death  of  our  much  valued  friend  and 
colleague,  Mr.  Thomas  Fraser.  It  is  a  distinct  loss  to  the  bank, 
for  in  Mr.  Fraser  was  combined  the  theoretical  knowledge  of 
an  expert  with  the  practical  experience  of  a  sound  and  brilliant 
exchange  banker.  His  death  adds  one  more  name  to  the  roll 
of  those  who  have  suffered  from  the  strain  and  stress  of  this 
terrible  war.  Mr.  W.  E.  Preston  has  been  appointed  to  succeed 
Mr.  Fraser  as  manager,  in  conjunction  with  Mr.  Whitehead, 
while  Mr.  Bruce  has  been  appointed  sub-manager  at  head  office. 
Both  gentlemen  are  well  known  to  our  friends  and  customers, 
and  I  am  confident  that  their  respective  appointments  will  meet 
with  very  general  approval.  Lastly,  Mr.  William  Hoggan,  who 
has  for  many  years  so  ably  and  satisfactorily  fulfilled  the  duties 
of  secretary  to  this  bank,  has  resigned  with  a  view  to  enjoying 
a  well-deserved  holiday,  after  a  very  arduous  and  strenuous 
career  in  the  service  of  the  bank.  We  shall  all  miss  him.  Mr. 
Arthur  Hewett  has  been  selected  to  fill  the  position  of  secretary. 
The  excellent  work  of  the  staff  is  reflected  in  the  results  shown 
in  our  annual  report,  but  I  can  also  with  pleasure  state  that 
every  mennber  of  tihe  s;taff  at  home  and  abroad,  both  male  and 
female,  has  done  his  or  her  best  in  each  particular  branch  of 
the  work.  The  services  of  ithe  staff  at  home  have  been  speci- 
ally recognised  by  grants  to  meet  the  iincrcased  cost  of  living, 
while  our  foreign  staff  have,  since  igi6,  rex;eived  an  extra 
month's  salary.  These  allowances  are,  of  course,  in  addition 
to  the  annual  bonus  of  lo  per  cent,  granted  by  the  share- 
holders. Further,  owing  to  war  difficulties,  it  has  been  found 
impossible  to  arrange  furlough  for  our  Eastern  staff,  and  the 
leave  of  many  of  them  is  long  overdue.  In  such  cases  the 
directors  have  compensated  these  officers  by  allowing  them,  to 
draw  one-fifth  of  a  year's  salary  extra  for  each  year  that  they 
serve  abroad  after  their  furlough  becomes  due.  I  am  glad 
tJ  say  that  the  Court  of  Directors  have,  in  conjunction  with 
the  managers,  evolved  a  pension  scheme  for  the  staff,  which 
will  come  imto  operation  forthwith.  A  deedi  of  trust  has  been 
drawn  up,  and  trustees — three  direotors  and  three  members  of 
the  staff— ihave  been  appointed  to  deal  with  the  fund.  Share- 
holders will,  I  am  sure,  be  glad  to  have  some  information  as 
to  mermbers  of  the  staff  serving  in  hiis  Majesty's  Forces.  In 
all  175  members  have  joined  up — 72  have  obtained  commis- 
sions, while  22,  I  regret  to  say,  have  given  their  lives  in  the 
glorious  cause  of  liberty  and  freedom.  All  honour  to  their 
memory.  One  officer  has  received  the  D.S.O.,  six  have  been 
awarded  the  Military  Cross,  and  one  the  D..S.M.  I  am;  confi- 
dent you  will  agree  vroth  me  that  this'  record  is  one  of  which 
the  Chartered  Bank  of  India  may  be  proud. 

The  staitoment  of  accounts  now  before  you  is  specially 
noticeaiblc  in  the  fact  that  our  proposal  to  add  ;£ioo,ooo  to  the 
reserve  will  bring  that  fund  up  to  the  satisfactory  figure  of 
;f2,ooo,ooo,  as  com/pared  with  our  paid-up  capatal  of 
;£i,2oo,ooo.  It  has  been  the  consistent  policy  of  the  dirgctors 
for  many  years  past  to  add  to  the  reserve,  thoroby  assuring 
the  'financial  stability  of  the  bank  and  improving  the  value 
of  the  shares  in  the  market.  Further,  it  is  in  a  .measure  owing 
to  this  consistent  policy  of  husbanding  our  resources  and 
building  up  our  reserves  that  we  are  able  to  pay  the  hand- 
some return  which  shareholders  now  enjoy.  I  feel  confident 
that  the  policy  pursued  will  meet  with  your  hearty  approval. 
Taking  the  figures  of  the  report  issued  in  1906,  you  will  find 
that  the  reserve  fund  then  stood  at  £()7S>°°"^  increased  to 
;£i,475,ooo  in  1907,  partly  by  the  addition  of  the  premium  on 
the  new  shares  issued  im  that  year,  and  gradually  increased 
year  by  year  up  to  the  pre.sent  figure.  Turning  to  our  balance- 
sheet,  we  ha-ve  every  rea.son  to  congratulate  ourselves  on 
steadily  expanding  figures,  pointing  to  healthy  development  all 
along  the  line.  Our  totals  now  aggregate  ;f36, 126,432  12s.  id,, 
as  again.s.t  ;f 33, 390,841  14.S.  iid.  at  December  31  last  year, 
an  increase  of  .^2,735.590  17s.  2d.,  and  even  these  figures  would, 
in  the  ordinary  course,  have,  .shown  considerable  increa.w  had 
our  complete  returns  not  been  delayed  by  the  shipping  diffi- 
culties. Our  current  and  fixed  deposit  accounts,  now  amount- 
ing to  /28,042,14s   18s.  7d.,  an  incre.Tse  of  ;ffs, 338,052  12s.   gd., 


evidence  the  continued  confidence  our  home  and  Eastern 
friends  place  in  the  stability  of  the  bank.  On  the  other  side 
of  the  account  our  cash  in  hand  amounted  to  ;£8,694,i45 
6s.  I  id.,  an  increase  of  .ii"3,o5j,253  7s.  3d.,  showing  a  propor- 
tion of  cash  to  deposit  liabilities  of  over  30  per  cent.  Our 
policy  is  to  keep  as  liquid  a  position  as  possible.  Our  bills 
discounted  and  loans  also  show  satisfactory  progress  at 
.1^10,143,108  los.  id.,  against  ^^9, 601, 277  5s.  lod.  Bills  of  ex- 
change, including  Treasury  bills,  amounting  to  ;^4, 337,903 
5s.  id.,  require  explanation.  Owing  to  the  serious  delays  in 
arrival  of  the  mails,  we  found  ourselves  in  the  awkward  pre- 
dicament of  either  having  to  delay  our  accounts  or  of  resorting 
to  our  old  method  of  grouping  the  "  en  route  "  .items  under 
a  separate  heading.  We  considered  it  advisable  to  follow  the 
latter  course  rather  than  delay  the  payment  of  our  dividend, 
and  in  this  we  feel  sure  we  have  your  hearty  approval.  The 
result  of  this  is  the  reintroduotion,  temporarily,  into  the 
bakmce-sheet  of  an  item,  "  Balance  of  head  office  and  inter- 
branch  remittances,  drafts,  &c.,  in  transit,  ;£6,446,493  6s.  lod." 
Since  the  issue  of  our  balance-sheet  the  necessary  details  have 
come  to  hand,  showing  that  tlie  above  item  was  practically 
accounted  for  by  bills  receivable  en  route  for  ;^io,o4o,ooo, 
less  bills  payable  en  route  for  ;f3, 590,000.  It  will  be  evident, 
therefore,  adding  these  amounts  to  the  figures  appearing  in 
the  balance-sheet  opposite  the  respective  bills  .i>ayable  and 
bill  of  exchange  items,  that  the  expansion  in  our  business  under 
these  headings  has  been  very  marked  indeed. 

Turning  to  our  profit  and  loss  account,  our  nett  profit  for 
the  12  months  was  ^402,795  13s.  id.,  against  .£381,259  17s.  lod. 
in  the  previous  year,  and  after  placing  ;f  100,000  to  reserve 
fund,  adding  £25,000  to  officers'  superannuation  fund,  and 
writing  £40,000  off  premises  account  (which  latter  item  we 
considered  necessary  in  view  of  our  having  had  to  acquire  new 
premises  at  certain  points  to  meet  our  increasing  business),  we 
recommend  a  final  dividend  at  the  rate  of  14  per  cent,  per 
annum,  together  with  a  bonus  of  £1  per  share,  equal  to  19  per 
cent,  per  annum,  free  of  income-tax,  and  carry  forward 
£167,261  3s.  3d.,  against  £157,465  los.  2d.  brought  in.  While 
our  profits  have  so  largely  expanded  our  expenses  'have  but 
naturally,  under  present  abnormal  conditions,  increased  also, 
but  it  is  satisfactory  to  know  that  30  per  cent,  of  that  increase 
is  due  entirely  to  the  higher  rates  of  exchange  ruling  in  the 
East.  With  these  remarks,  gentlemen,  I  beg  to  move : — "  That 
the  report  now  presented,  together  with  ithe  balance-sheet 
and   profit  and   loss  account,   be  approved  and  adopted." 

Sir  Alfred  Dent,  K.C.M.G.,  seconded  the  resolution,  which 
was   carried  unanimously. 


METROPOLITAN     LIFE    ASSURANCE 
SOCIETY. 

The  ordinary  general  meeting  of  the  Metropolitan  Life 
Assurance  Society  was  held  on  Thursday,  at  the  City  Ter- 
minus Hotel,  Cannon  Street,  Major-General  Sir  Ivor  Philipps, 
D.S.O.,   M.P.,  presiding. 

The  Chairman  stated  that  the  new  business  during  the  year 
1917  consisted  of  146  policies  for  £'153,439,  producing  new 
annual  premiums  of  £5,264.  In  igi6  they  issued  105  policies, 
assuring,  after  deduction  of  re-as.surances,  .£170,537.  In 
present  circumstances,  these  figures  would  not,  he  thought, 
be  considered  unsatisfactory.  In  a  mutual  society  such  as 
theirs,  employing  no  agents,  and  paying  no  commission,  new 
business  could  only  be  obtained  by  the  co-operation  of  the 
members,  directors,  and  staff,  and  he  therefore  appealed  to  them' 
to  continue  to  take  every  opportunity  of  recommending  the  Metro- 
politan to  their  friends.  The  claims  by  death  amounted  under 
181  policies  to  £184,674,  of  which  ^£14,099  in  respect  of  24 
policies  was  directly  due  to  the  war.  The  number  and  amount 
expected  according  to  the  table  of  mortality  used  in  the  valua- 
tions were  221  policies  assuring  £'186,218.  The  mortality  had 
been  chiefly  among  their  older  members,  of  whom  an  un- 
usually large  number  had  died  during  the  year.  The  ex- 
penses of  management  were  slightly  more  than  in  igi6, 
amounting  to  7.1  per  cent,  of  the  premium  income.  The  gross 
rate  of  interest  earned  on  the  whole  of  the  society's  funds  was 
£4  14s.  id.  per  cent.,  being  a  slight  increase  over  the  rate  for 
igi6.  After  allowing  for  a  special  repayment  of  income-tax 
received  during  the  year,  the  interest  yield  after  deduction 
of  tax  was  £3  13s.  4d.  per  cent.,  or  an  increase  of  is.  6d. 
per  cent,  over  the  rate  for  igi6.  The  valuation  of  their  Stock 
Exchange  securities  on  the  basis  of  the  market  prices  on 
December  31  last  disclosed  a  further  depreciation,  and  fully 
to  meet  this  £20,500  had  been  written  off  the  book  value  of 
these  investments.  In  common  with  all  other  life  assurance 
companies,  the  society  had  lost  heavily  through  the  war  in 
various  ways,  but  principally  through  the  depreciation  of 
securities,  increased  income-tax,  and  loss  due  to  deaths  among 
policyholders  on  active  service.  In  these  three  ways  the  war 
had  cost  the  society  nearly  ^£300, 000 — a  sum  which  would 
have  been  sufficient  to  increase  the  rate  of  abatement  of  pre- 
miums by  over  18  per  cent.  The  fact  that,  they  had  been 
able,  in  spite  of  such  adverse  circumstances,  to  maintain  the 
pre-war  rate  of  reduction  of  premiums  justified  their  confi- 
dence in  the  financial  strength  of  the  society.  After  warmly 
commending  the  services  of  the  staff,  especially  referring  to 
those  of  Mr.  Bernard  Woods  (the  secretary),  Mr.  Henry  J. 
Baker  (the  actuary),  and  of  Mr.  Hanmer  (the  accountant),  the 
chairman  concluded  by  moving  the  adoption  of  the  report  and 
accounts. 

Mr.  John   Bowring  Wimble  seconded  the  motion,  which  was 
carried   unanimously. 


374 


Ube  Jnvestors'  IReview. 


April  13,   1918. 


RIO  TINTO. 

The  forty-fif'th  ordinjiiy  general  meeting  of  the  shareholders 
of  ithe  Rio  Tinlo  Company,  Ltd.,  was  held  on  Wednesday  at 
the  offices,  3,  I^mlbard  Street,  E.C.,  Sir  Charles  W.  I'ielddng, 
K.n.K.,  chai.nnan  of  the  board,  presiding. 

The  Secre<L.iry  (Mr.  J.  Gordon  Macleod)  read  the  notice  con- 
vening the  meiiting  and  the  auditors'  certificate. 

The  Chairman  :  In  submitting  the  report  and  accounts  for 
the  pa.s*  year,  I  have  only  to  make  a  very  few  remark-s.  The 
various  mining  operations  in  Spain  were  carried  out  during  the 
yoar  1917  on  the  lines  of  our  established  programme,  altered 
only  in  so  far  as  exigencie.s  of  circumstances  that  iirose  from 
time  to  time  made  such  alterations  neces.sary.  The  production 
of  copper  during  1917  -was  carried  on  in  Sp;un  by  the  usual 
wet  and  dry  processes,  but  certain  inifrovements  and  economies 
have  been  introduced.  Naturally,  with  other  concerns  the 
world  over,  we  have  s.uffored  from  a  shoritage  of  supplies  and 
the  dearness  of  materials,  but  during  the  year  under  review,  I 
am  glad  to  say,  we  were  able  to  carry  on  the  necessary  opera- 
tions. The  enhanced  cost  of  food  in  Spain  and  elsewhere  made 
it  desirable  that  some  addition  should  be  made  to  wages  and 
.salaries,  and  at  the  same  time  the  company  has  done  every- 
thing it  could  to  facilitate  the  supplies  of  .bread  and  other 
necessaries  in  our  mining  towns  at  the  lowest  .possible  costs. 
The  improvements  in  the  housing  and  social  conditions  of  the 
workpeople  mentioned  last  year  have  also  been  carried  on 
during  the  period  under  review.  As  to  the  immediate  fu.ture, 
I  cannot  .speak  with  amy  certainty.  Supplies  of  fuel,  iron,  and 
other  materials  essentiul  to  our  operations  are  -very  insecure, 
and,  when  obtained,  are  at  extravagant  prices ;  exchange,  also, 
is  very  much  against  us.  Consequently,  although  copf^r  is  sti.ll 
at  a  high  value,  the  costs  of  production  are  enormously  en- 
hanced and  the  profits  adversely  affected  and  uncertain.  As 
to  the  more  distant  future,  the  high  rates  of  freight  and  the 
high  prices  obtainable  for  copper  and  sulphur  have  naturally 
brought  into  local  use  mineral  which,  in  ordimary  times  could 
not  bo  produced  in  connpeti.tion  with  our  materials.  We  be- 
lieve, however,  that  our  production  will  maintain  its  position 
in  the  world's  markets  when  we  agai,n  emerge  from  the  after- 
math of  the  war,  and  we  believe  that  holders  of  shares  may 
then  look  forward  to  the  return  of  our  old  and  prosperous 
conditions.  I  will  now  propo.se :  "  That  the  report  and  ac- 
counts for  the  year  19 17,  which  have  been  submitted  be  now 
adopted  and  passed." 

Mr.  J.  M..Macdonald  (director)  seconded  the  motion,  which 
was  put  to  the  meeting  and  carried  unanimously. 


What    Balance    Sheets   Tell. 

MERCANTILE    BANK   OF   INDIA,   LTD. 

In  1916,  no  doubt  partly  owing  to  the  acquisition  of  the  Bank 
of  Mauritius,  Ltd.,  gross  profits  advanced  ;^6i,ooo,  and  this  is 
followed  Dy  a  gam  of  ^74,000  last  year,  raising  the  total  to 
jC352,i5o.  Including  a  trifle  more  brought  in,  the  nett  balance 
shows  an  increase  of  ^43,500  at  ;^2o8,i8o,  and  in  addition  to 
the  usual  dividend  of  12  per  cent.,  a  bonus  of  2  per  cent  (new) 
IS  recommended.  Reserve  again  gets  ^^50,000,  raising  it  to 
^^650,000  against  an  issued  capital  of  ;^562,ooo,  and  /•ii,ooo, 
against  ;{:s,ooo,  is  placed  to  officers^  pension  fund,  while  once 
more  ^10,000  is  written  off  bank  premises.  These  appropria- 
tions leave  ;^s8,43o,  or  ^26,000  more,  to  be  carried  forward. 
Mote  circulation  increased  ;^23,ooo  to  ;,f  127,400,  current  and  de- 
posit accounts  have  risen  ^1,250,000,  to  ^9,812,000,  bills  pay- 
able ;^22o,ooo  to  ;fi, 140,000,  and  acceptances  ;,r62,ooo  to 
£411,000.  Cash  balances  have  increased  /■24i:,ooo  to 
^2,271,000,  investments  ^^200,000  to  ^1,024,000,  bills  receivable 
£870,000  to  /4,327-ooo,  and  loans,  &c.,  ^^44,000  to  /3,76o,ooo. 
The  balance-sheet  totals  ^12,808,000,  an  increase  of  2i/^4o  000, 
and  the  progress  made  is  very  satisfactory.  a,     .Tt  , 

WESTERN  UNION   TELEGRAPH   CO. 

Last  year  produced  by  far  the  largest  business  this  big  com- 
bine ever  had  to  handle,  the  volume  of  traffic  increasing  140  per 
cent,  over  iqio  and  66  per  cent,  over  1914.  Gross  operating  re- 
ceipts amounted  to  $76,(>95,ooo,  an  increase  of  15  million  dollars 
or  24.3  per  cent,  more  than  in  1916,  but  expenses,  including  de- 
preciation, advanced  13  millions,  or  26.1  per  cent.,  and  the  nett 
income  after  paying  fixed  charges  was  only  «8oo,ooo  higher  at 
»i4,365,ooo.  The  ratio  of  expenses  to  receipts  rose  from  80  i 
per  cent,  to  81.5  per  cent.,  and  as  the  charge  for  Government 
messages  (which  has  greatly  increased)  is  only  40  per  cent 
of  the  commercial  rate,  it  is  pointed  out  that  this  part  of  the 
business  IS  conducted  at  considerably  less  than  the  cost  of 
operation.  Nevertheless,  the  dividend  is  raised  f rom^  6  per 
cent,  to  7  per  cent.,  and  the  surplus  carried  forward  is $4,700,000 
higher  at  »2o,25o,ooo.  During  the  year  $5,200,000  was  spent 
on  additions  and  betterments  to  plant  and  equipment,  raising 
the  total  to  153  millions,  and  new  offices  are  being  erected  in 
I  hicago  at  an  approximate  cost  of  $1,500,000.  Current  assets 
increased  $7,700,000  to  $35,066,000,  and  current  liabilities 
$6,600,000  to  $14,170,000.  To  give  an  idea  of  the  extent  of  the 
organisation,  it  may  be  mentioned  that  the  company  owns  or 
controls  199,470  miles  of  pole  line,  923,200  miles  of  iron  wire, 
676,200  miles  of  copper  wire,  2.875  miles  of  land  cables,  and 
22,915  miles  of  ocean  cables,  while  there  are  no  fewer  than 
25,460  offices  in  operation. 

LONDON    NITRATE  CO.,   LTD- 

For  the  year  to  June  30  last  the  trading  profit  was  ;f  57^430. 
an  increase  of  /'i.Soo.  but  income-tax  required  ;^4,2oo  more,  and 
after  again  writing  off  ^10,000  for  depreciation,  and  repeating 


the  dividend  of  3s.  per  share  the  carry  forward  is^  about  the 
.lame  at  /^8,$(x>,  because  on  this  occasion  nothing  has  to  be 
written  off  for  depreciation  of  investments,  for  which  ;^2,5oo 
had  to  be  provided  last  year.  As  previously  announced  the 
Santa  Laura  grounds  were  purchased  from  the  Chilian  Govern, 
ment  during  the  year,  and  the  expenditure  on  them  appears  in 
the  balance-sheet  at  /■io5,i40,  raising  the  total  of  the  property 
account  to  ;f26o,4oo.  This  is  doubtless  the  main  reason  for  the 
increase  of  _^i  13,000  to  ^^165,000  in  sundry  creditors,  neces- 
sitating an  increase  of  ;f 40,000  in  the  share  capital,  and  an 
increase  in  the  borrowing  powers  to  ^200,000.  Meantime, 
however,  the  transaction  is  being  financed  by  the  company's 
bankers   until  after   the  conclusion  of    the   war. 

AMERICAN   INVESTMENT  TRUST   CO.,  LTD. 

For  the  year  to  March  15  the  revenue  amounted  to  /^88,7so,  a 
decrease  of  £.2,-]a,o,  which  is  more  than  accounted  for  by  in- 
creased income-tax,  and  the  nett  profit  after  providing  for 
debenture  interest  was  a  corresponding  amount  lower  at  ;f  52,830. 
However,  a  larger  amount  was  brought  in,  and  the  dividend 
of  8  per  cent,  on  the  deferred  stock,  less  tax,  requires  a  smaller 
amount,  so  that  the  carry  forward  is  increa.sed  by  £4,000  to 
^26,650.  Nett  profit  on  realisation  of  investments  was  .^^3,900, 
against  ^^6,600,  and  this  has  been  applied  in  writing  down 
securities,  leaving  the  capital  reserve  at  ;f298,70o.  Investments 
now  stand  at  ^^2, 365,000,  an  increase  of  _,^i2,ooo  during  the 
year.  They  include  half-a-million  in  the  5  per  rent.  War 
Loan. 

FOREIGN,   AMERICAN,    AND   GENERAL    INVESTMENTS 
TRUST   CO.,    LTD. 

Income  for  the  year  to  March  15  amounted  to  ^^8,440,  a  de- 
crease of  £2.,-'io,  but  this  is  due  to  the  higher  rate  of  income- 
tax  deducted,  and  not  to  any  decline  in  the  actual  revenue  from 
investments.  After  paying  debenture  interest  and  other  charges 
the  nett  profit  is  .^2,600  lower  at  ^^58,150,  but  a  larger  amount 
was  brought  in,  and  when  provision  is  made  for  the  dividend  of 
5  per  cent,  on  the  deferred  stock,  the  carry  forward  is  /2,ooo 
iip  at  ^20,350.  Sales  and  redemptions  of  securities  resulted  in 
a  balance  profit  of  ^10,560,  which  has  been  applied  in  writing 
down  securities,  leaving  the  capital  reserve  at  ;fi25,8oo.  In- 
vestments stand  at  jf2,i73,ooo,  an  increase  of  ;f5,ooo. 

BRITISH  AND   FOREIGN    TRUST,   LTD. 

In  the  year  ended  January  15  the  revenue  from  investments 
amounted  to  ^f 55, 900,  an  increase  of  £\,vpo,  but  income-tax  re- 
quired more,  and  after  paying  debenture  interest,  the  nett  profit 
is  a  little  smaller  at  ^^23,830.  However,  the  nett  amount 
realised  on  the  sale  of  securities  was  iz,sy^^  against  ;f  180,  and 
only  ^^1,670,  against  £aS>2o,  has  to  be  charged  against  revenue 
to  make  up  the  usual  ;f  5.000  written  off  the  cost  of  investments, 
so  that  after  again  paying  4  per  cent,  on  the  ordinary  stock,  the 
balance  forward  is  increased  by  ^3,000  to  .£9,950-  ^"*^?'" 
ments  stand  at  ;f  1,010,000,  a  decrease  of  ^13,000,  and  the 
cash  in  hand  is  _£io,ooo  less  at  ^^6,750. 

ELECTRO    BLEACH   AND    BY-PRODUCTS.   LTD. 

The  191=  accounts  of  this  company  were  complicated  by  the 
fact  that  profits  were  struck  after  providing  excess  duty  for 
two  years,  and  they  showed  a  reduction  of  £(>,ooo  at  ;£i9,5oo, 
but  they  were  augmented  by  the  transfer  of  .£4.000  from 
excess  duty  reserve,  and  a  dividend  of  7  per  cent,  was  paid. 
Vox  the  past  year  they  were  ;f25,90o  after  providing  for  excess 
duty,  and  as  the  balance  of  preliminary  expenses  (;£5,3oo)  was 
written  off  a  year  ago  there  is  a  very  substantial  increase  in 
the  balance  available.  Therefore,  the  directors  raise  the  divi- 
dend from  7  per  cent,  to  10  per  cent.,  and  place  ;f6,ooo  to 
reserve,  leaving  ^1,670  or  a  little  more  to  be  carried  forward. 
It  is  only  a  young  company,  four  years  old,  but  seems  to  be 
progressing    satisfactorily. 


OILFIELDS     PRODUCTION. 


Anglo-Egyptian. — W'eek  ended  March  31  ; — Gemsah,  21  tons 
(last  21  tons)  ;  Hurghada,  5,603  tons  (last  8,422  tons). 

British  Burmah  Petroleum. — Total  crude  oil  by  this  company 
and  Rangoon  Oiil  Co.  was  81,596  barrels  for  March. 

Kern  Rivfir  Oilfields. — 128,416  barrels,  or  18,345  W>s,  during 
March,  including  73,372  barrels  from  properties  of  St.  Helens 
Petroleum  Co.,  Ltd. 

Trinidad  leaseholds. — 11,100  tons  during  March  (Forest  Re- 
serve Field).  Actual  January  production,  as  ccmfirmed  by  mail, 
was  9,600  tons. 

Trinidad  Oil  and  Transport. — Crude  oil  March  (Barrackpore 
Field),  2,208  tons,  against  3,218  tons.  Total  three  months  to 
date,  12,533  tons,  against   12,768  tons. 

Ural  Caspian. — Week  ended  March  7,  2,180  tons.  Previous 
report  received  was  for  week  ended  January  24.  Oil  for  six 
weeks,  January  24  to  March  7,  shows  an  increase  of  641,600 
poods.  Average  fuel  consumption  is  16,000  poods  weekly 
{96,000  poods),  so  that  production  for  jxriod  has  been  approxi- 
mately 737,600  poods,  or  123,000  poods  weekly,  which  is  about 
normal. 


To  fill  the  vacancies  caused  by  the  deaths  of  Mr.  James 
F.cker.sley  and  Mr.  George  Reynolds  Davies  the  board  of 
Williams  Deacon's  Bank,  Ltd.,  have  elected  Mr.  Percy  Ash- 
worth,  of  Bolton,  and  Sir  Alan  John  Sykes,  Baronet,  M.P., 
of  Cheadle,  Cheshire,  to  be  directors  of  the  bank. 


Ai'RiL  13,   igi8. 


tTbe  investors'  IReview* 


375 


INDIAN  RAILWAYS. 


GROSS  TRAFFIC  FOR  WEEK. 


Naub. 


Week 

ending 


Amount 


Assam  Bengal 

Barsi 

Bengal  &N.-W.     .. 
Bengal  Nagpar 
Bombay,  Baroda  .. 
B  rma  ..        .. 

Delhi  Umballa  .. 
East  Indian..  ,. 
Gt.  Indian  Penin.  .. 
Luoknow-Baretlly. . 
Madras      and       S. 

Mabratta  .. 
Nizam's  Gd.  (Broad) 
.,        „     (Metre) 
Robllkund  and 

Kumaon  . , 
South  Indian 


Feb. 

2 

,, 

9 

Jan. 

2b 

Keb. 

t 

Mar. 

so 

Kab. 

2 

Mar. 

21 

,, 

30 

,, 

11 

Ian. 

26 

Feb. 

9 

,, 

2 

.. 

2 

[an. 

26 

Feb. 

9 

Rs. 

157,724 

16, 30) 

5, CI, coo 

9,89,003 

20,57,000 

5.34.328 

1,04,000 

21.15,000 

34,86,200 

54-359 

10,60,000 
1,96,742 
1,23,720 


In.  or  deo. 

on  last 

vear. 

RsT 

+     29,252 

—  8,500 

—  71.130 

—  g[,ooo 
+  2.63,000 
+  3.359 
+      18,024 

—  2,46,000 
+  7,96.900 

—  7,216 

—  766 
+  40,860 
+      11.775 


GROSS  TRAFFIC  TO  DATE' 


36,701     —         2,290       I 
6.68,223     +       55,068       1 


Amount 


Rs. 

24,64,026 
7,19,800 

63.93.753 
4.63.a5.932 
3,88,39,000 
i.79,*2.632 

22,22,486 

6,02,19,000 

5.96.55.554 

8,2o,i6g 

1.90,57.643 
23,41,723 
15,51,324 


In.  or  dec. 
on  last 
year. 


Rs. 

+    1.86,313 

—  2,19,300 

—  6,60,312 
+  35,ii.o»6 

—  3,56,000 

—  23,106 
+  2,99,499 
+  11,45,000 
+  38,99.234 
■t-        83,175 

+  9.78,003 
+  42,280 
+        38,895 


f  April  I. 


t  October  i. 


700,330  +       57,477 
1,22,56,027  f    9,08,470 


TRAMWAY  AND  OMNIBUS.— HOME. 


Dublin  Unlled 

Mar.   I 

7.305 

£ 
+   1.364 

( 

61,814 

+ 

£ 
11,088 

Hastings  and  Dist. . 

,,     18 

1,093 

+         I2« 

} 

10,521 

+ 

840 

Isle  ol  Thanet 

„     16 

194 

—          55 

♦ 

4,110 

1.843 

Lancisliire  United.. 

Apr.    3 

3.794 

+     2.052 

f 

34,946 

+ 

11,581 

Provincial    . . 

Mar. 

2,604 

+      593 

* 

56,898 

+ 

9,730 

Yorks.  (Wsl.  Rdng.) 

Apr.    7 

3,167 

+    1,229 

+ 

33,604 

+ 

8,397 

♦  From  Oct.  i.  +  From  Jan. 

TRAMWAY  AND  OMNIBUS— FORtlGN  AND  COLONIAL. 


Alabama  Power     ,, 
Anglo-Argentine    ., 
Auckland  Electric. 
Brazilian  Traction 
Brisbane  Elec.  Inv 
British  Columbia  . 
B.A.  Lacroze 
Burmah  Electric  .. 
Calcutta 
Carthagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &  T.     . . 
Hongkong   .. 
La  Plata 
Lima  ., 
Madras  Electric    ,. 

Manila  Electric 

Mexico 

Rangoon 

Singapore  Electric 

Toronto 

United  of  Monte  V 

Vera  Cruz    . , 

Winnipeg    , . 


Feb. 

? 

Apr. 

8 

Oct. 

sft 

Feb 

§ 

" 

§ 

" 

b 

Apr. 

6 

Feb. 

b 

Ian. 

Feb. 

16 

Mar. 

h 

Feb, 

Mar. 

lie 

Aug. 

8 

Nov 

S 

Mar. 

5 

Dec. 

29 

Feb. 

« 

Mar. 

Feb. 

§ 

£ 

127,420 

57.588 

22,308 

M3,565,ooo 

32,009 

»i3i.940 

„    34,397 

Rs.22.985 

Rs.72,404 

4,03" 

12,845 

$18,149 

5,347 

41,913 

Rs.  48.284 

65,467 

1215,256 

5.955 

613,201 

•433,447 

36.659 

42,200 

»7ii403 


£ 

+  26,091 
+  9,678 
+  880 

—  M320,00O 

+  2,269 
+     $30,260 

—  1,580 
+  Rs.  73 
+  Rs.4,047 

+  808 

+  413 

+  »5,635 
+  819 

+  7.685 
4-  Rs.  12,949 
+  4,667 

—  $108,669 
271 

»I,I73 

♦7.769 

4,6So 

6.300 

«7ii07 


£ 

345,887 

762,495 

92,118 

M7, 261,000 

66,509 

$902,899 

303,775 

157,522 

RS93I,239 

8,042 

134,966 

$94,318 

14,803 

85,449 

Ks. 237,003 

547,492 

$3,193,106 

16,978 

$668,805 

$911,109 

172.3.33 

84,200 

$150,195 


i 

+  327,163 
+  54.032 
+  7.832 

—  M626,ooo 
+  3.689 
+   $131,034 

—  1,239 
4-  Rs.  217 
+  Rs.47,7l8 

+  837 

641 

—  $102 

4-  1,867 

4-  14,380 
4-85.33,569 
70,625 

—  $197,227 
l,5'4 

$11,901 

$908 

14,941 

19,300 

$16,837 


liaS  days.       ♦  From  Jan.  i,      J  Nett,       a  From  luly  i. 
FOREIGN  RAILWAYS. 


c  Two  weeks, 


£ 

£ 

£ 

£ 

AlcoyandGandia.. 

Apl. 

6 

Ps.     8,000 

_ 

800 

Ps.  128,900 

-Ps. 1 1,470 

Antofagasta    (Chili 

Mar 

31 

40.450 

4- 

2,050 

516,405 

4-        37,105 

Arauco 

Feb, 

12.500 

4- 

2,500 

26,5«o 

4-          4,500 

Argentine  N.E. 

Apl. 

6 

10,100 

4- 

3,300 

334,800 

4-        67,398 

Bilbao  R.  and  Canla 

Feb. 

2.953 

4- 

655 

8,062 

—            433 

Bolivar 

,, 

* 

9.500 

— 

639 

8J,236 

+        19,230 

Brazil 

Jan. 

M5,202,000 

+  M 1070499 

M5, 202, 000 

4- Ml  070499 

Brazil  Gt.  Southern 

Nov 

* 

Ml3.44,050 

■t- 

M850 

M47l,527 

4-    M5I,057 

B.  Ayres  &   Pacific 

Apl. 

6 

158,000 

4- 

80,000 

3,583,000 

4-      131,000 

Do.  Central     .. 

Feb. 

31,429 

4- 

10,739 

210,790 

4-        18,654 

Do.  Gt.  South'n 

Apl. 

7 

129,000 

4- 

34.000 

4.394.705 

—     134,549 

Do.       Western 

,, 

7 

71,000 

4- 

36.000 

1,949,000 

—       50,000 

Central  Argentine.. 

,, 

6 

179,000 

4- 

104.800 

4,265,200 

4-        56,600 

C.Ur'g'ayofMtsV 

,, 

6 

21,869 

4- 

7,610 

731,818 

4-      207,435 

Do.  East'n  Ex. 

,, 

6 

5.484 

4- 

930 

199,161 

4-          7.483 

Do.North'nEx. 

,, 

6 

4.149 

H 

1,474 

128,375 

4-        32,865 

Do.  West'n  Ei. 

,, 

6 

2,818 

+ 

1,255 

69,314 

4-        14,987 

Cordoba  Central  . . 

,, 

6 

42,200 

+ 

15,850 

+ 

1,192,550 

4-        22,630 

Costa  Rica  . 

Fob. 

16 

2,662 

— . 

5,2'5 

t 

9 ',579 

—       80,848 

Cuban  Central 

Apl. 

6 

35.173 

4- 

4,39' 

775,919 

4      146,19s 

Dorada  Extension.. 

Feb. 

* 

7,400 

— 

1,400 

2 

15,700 

—         2,300 

Egyptian  Delta     .. 

10 

8,720 

4- 

1,433 

s 

249,329 

+       58,755 

Entre  Rios  .. 

Apl. 

b 

2o,8co 

h 

8,000 

\ 

607,500 

4-      134,500 

French  Sante  Vi  . . 

.Ian. 

147,488 

4- 

55,713 

I 

147,488 

4-        55,713 

Gt.  South,  of  Spain 

Mar. 

21 

Ps.    30,253 

-P 

s65,6l3 

t 

Ps.  364.716 

—  Ps792,536 

Gt.West.  of  Brazil.. 

Apl. 

6 

16,200 

4- 

5,900 

\ 

262.800 

4-        76,950 

Havana  Central     .. 

Mar. 

30 

11,591 

4- 

3,769 

: 

337,339 

4-       68,731 

Inter,  of  C.  Amer... 

Feb. 

C 

24,247 

— 

9,386 

t 

47.671 

—       17,585 

La  Guaira  and  Car. 

Mar. 

5.500 

— 

4,000 

1 

19,250 

—         8,250 

Leopoldina., 
Midland  Uruguay  . . 

Apl. 

6 

32,342 

4- 

13,737 

) 

449.512 

4-      126,437 

Mar. 

14,894 

4- 

156 

9 

119,814 

4-          4,266 

Mogyana 

Deo. 

M2,342,000 

4- n;  534,708 

t 

M  24041,000 

+  M8l2,420 

N.W,  of  Uruguay.. 

Mar. 

•23,500 

»5,258 

9 

$237,090 

4-     $16,015 

Nitrate         .. 

,, 

31 

31,062 

— 

5.020 

1 

i?3,726 

4-        13,154 

Paraguay  Central  .. 

Apl. 

6 

2,680 

4- 

250 

t 

114,480 

4-        14,140 

Paulista 

Deo. 

* 

M3, 461,000 

4-.M 

752,6,7 

12 

.M  34115.000 

4  M2188775 

Peruvian  Corpn    . . 

Mar. 

* 

Si, 119,530 

4-  S 

102,530 

9 

S9,322.56o 

4-  S1020168 

Salvador 

,, 

10 

»3,5" 

4- 

$74 

I 

$64,593 

—      $5,479 

State  of  Bahia  S.W. 

, 

M47,ooo 

-ti 

20,000 

3 

M237,00O 

—  M53,ooo 

.S.  Paulo  (Brazilian) 

Apl. 

7 

31.295 

■¥ 

15,966 

t 

462,739 

4-      160,095 

Sorocabana.. 

Jan. 

VIl,952,ooo 

4-M 

1.99.895 

1 

.M  1.952,000 

+  M  199,895 

Taltal 

Mar. 

. 

20,392 

4- 

119 

9 

224,678 

4-        57,023 

United  of  Havana.. 

Apl, 

b 

84,493 

4- 

24.922 

) 

2,200,267 

4-      548,544 

West'n  of  Havana.. 

,, 

6 

I4,38j 

4- 

5.791 

t 

346.832 

4-        97,476 

Zafra  and  Huelva. . 

Feb. 

H.570 

4- 

1,610 

I 

22,493 

4-          2,392 

*  Months,  f  From  Jan.  x.  t  From  Ju.'y  i.    c  Nett.    b  is  days,    a  10  days. 
COLONIAL  RAILWAYS. 


£ 

£ 

" 

£ 

£ 

Betra 

Dec.  'c 

49,448 

—      1,842 

173,777 

4-        6,532 

Canadian  Northern 

.Mar.  31 

$1,248,700 

t  $101,900 

*30,699,400 

4-   8603,500 

Canadian  Pacific   . . 

\pr.   7 

$2,984,000 

4-$i54,ooo 

»35,6i3,<--oo 

+  $1694,000 

Gr.Trk.  Main  Line 

,,     7 

2'5.7I7 

4-      28,011 

2,341,632 

—        81,164 

Gt.  Trk.  Western  . . 

„      7 

41,527 

4-        2,959 

436,141 

—        10,956 

Detroit  G.  H.&M. 

„      7 

12,062 

—        1,479 

148,934 

-        11,666 

GrTliPac  Prairie  Sc 

Mar.  31 

50,401 

4-      23,402 

309,040 

4        97,271 

Mashonaland 

.Mov.  • 

56,698 

-        1,486 

56,698 

1,486 

Mid.of  Westn.  Aus. 

Jan     • 

9,296 

+            790 

52,517 

4          4,005 

New  Cape  Central. . 

Feb.  16 

2.563 

4-            556 

16,354 

4-          2,695 

Rhodesia      . . 

Dec.  "c 

79,220 

-        2,472 

269,405 

4-        11,926 

MONTHLY    STATEMENTS. 


NEXT  BARHtHOt  FOB   WORTH. 


Month. 


Amount. 


Atohison  T.  &  S.  F* 
Atlantic  Coast  Line 
Baltimore  &  Ohio  .. 
Canadian  Northern 
Canadian  Pacific  .. 
Chesapeake  &  Ohio 
Chicago  &  N.W,  .. 
Chicago  Burl.  &  Q. 
Chicago  G.W. 
Chicago  Mil.  AS.  P. 
Chicago,  Rocic  I.&P. 
Colorado  &Southern 

Cuba 

Delaware  &  Hud.  .. 
Denver  &  Rio  Gran 

Erie 

Gr.Tr.  Main  Line.. 
Grand  Trunk  Westn 
DetroitG.H.&Mil. 
Gt.  Northern 
Illinois  Central 
Kansas  City  Southn 
Lehigh  Valley 
Louisville  &  Nashvl. 
Minn.S.P.  (Soo)S  .. 
Miss.  K.  &  Texas  .. 
Missouri  Pacific  . . 
New  York  Cent. &H 
N.Y.N.  Haven  &H 
New  York Ont.&W. 
Norfolk  &  Western 
Northern  Pacific  .. 
Pennsylvania  East 
and  West  Lines.. 
Phil,  and  Reading  . . 

Reading 

St.  Louis  &  San  F. . 
Seaboard  Air  Line.. 
Southern 
Southern  Pacifio 
Union  Pacific 
Wabash 


Jan, 

Feb. 

Jan. 

Nov. 
Jan. 


Dec 
Jan. 


Dec. 
Feb. 


Dec. 
Jan. 


Dec. 
Jan. 
Nov, 
Jan. 
Dec. 
Jan. 


Dec. 
Jan. 


Dols. 

I,9I2,OCO 

r, 075 ,000 

1,852,000 

b  480,400 

591,000 

6  81,000 
b  785,000 
1,642,000 

b  10,000 

b  628,000 

80,000 

454,171 

3.600 

415.000 

507,000 

b  241,700 

b  f  40, 150 

''jf '3.100 

1,165,000 

6  477,000 
294,000 

b  986,000 
622,000 
357,000 
125,000 

1,690,000 
b  1,149,000 

1,182,000 
b  7,000 
223,000 
803,000 

5,940,000 
b  i,299,oco 

577,033 
1,225,000 

673,000 
1,191,000 


6  316,000 


In.  or  Deo. 
on  last  year 

~~DbTs7~ 

-1,688,900 

—  212,000 

—  1,165.000 

—  5  38,6  JO 
.395.000 
.334.000 

—2.797.000 
2,031,000 

—  322,000 
2,290,000 

—1,288,000 

—  ri.ooo 
H    245,735 

—  720,000 

—  232,0C0 
+  1,848,000 

—  £219,400 

—  £27,000 

f3.9oo 

—1,401,000 

2,034,000 

86,000 

1,346,000 

—1,264,000 

297,000 

—  280,000 
-f-  321,000 
—4,776,000 

—  870,000 

—  125,000 
—1,467,000 
—1,424,000 

—1 1072000 
—1,898,000 
f        5.826 

—  244,000 
206,000 

—  833,000 
536,000 

+      72,000 
1 ,026,000 


MBTT  BAXIHIfaa  TO  OATB. 


•S 

2S 


Amount. 


Dols. 

47,829,000 

12,014,000 

30,589.000 

2,279.700 

1.759.000 

14,099,000 

27,015,000 

31,281,000 

3,876,000 

21,967,000 

17,823,000 

5,320,000 

1.590.444 

5,686,000 

7,4(8,000 

10,538,000 

6  ;C409.700 

£■79.300 

^28. .00 

22,937,000 
18,606,000 
4,495,000 
9,403,000 
17,761,000 
9,331,000 
8,215,000 
9,425,000 
52,218,000 
23,815.000 
2,228,000 
19,654,000 
27,423,000 

5,940,000 
14,877,000 
g, 806,000 
9,576,000 
8,629,000 
15,944,000 
59,785,000 
42,942,000 
12,003,000 


In.  or  Dec. 
on  last  year 


Dols. 

—  1,248,000 
+     607,000 

—  3.425.000 

—  4.606,700 
2.659,000 
1,400,000 
3,034,000 
3,956,000 

—  1,006,000 
9,360,000 
2,953.000 

+     370,000 

+     398,910 

2,124,000 

—  1,963,000 

—  5,277,000 

—  :f6oi,55o 

—  £64.500 

—  1C6750 

—  6,179,000 
+  1,847,000 
+     569,000 

—  2,876,000 
2,090,900 

—  3,648,000 
■f-  2.467,000 
-t-  1,920,000 
—12063,000 

2,245,000 

—  97,DOO 
3,808,000 

—  4,110,000 

— 11072,000 

—  6,626,000 

+  212,860 
+     632,000 

—  24,000 
+  1,255,000 
+  7.953.000 

—  2,115,000 

—  844,000 


I  Includes  Wisconsin  Central.    *  Gross  earnings,    t  Surplus,    b  Deficit. 


Answ^eps  to  Coppespondents. 

*.*  A  Koy  to  these  Answers  will  be  posted  early 
each  week  for  a  subscription  of  ONB 
GUINEA  per  annum,  lis.  for  six  months,  or 
5s.  9d.  for  three  months. 

Deposits  against  future  Queries  may  be  lodged 
with  the  Publisher,  ^ 

P.  W.  A. — Why  sell  if  you  have  no  need  to?  All  the 
three  companies  are  among  those  we  should  select  to  buy. 

Tin  Mines. — We  cannot  say,  but  do  not  think  it  probable  at 
present. 

Jasper. — Yes,  but  do  not  go  far  to  start  with. 

E.  T.  L. — We  do  not  think  you  should  increase  your  risk, 
but  do  not  advise  a  sale  at  present. 

J.  D. — The  Financial  Times  publishes  a  useful  pamphlet; 
al-so  W.  and  R.  Chambers,  of  Edinburgh. 

Main. — They  are  is.  shares,  so  stand  high,  but  the  property 
seems  likely  to  prove  valuable.      They  are  a  speculative  risk. 

James. — Everything  depends  on  the  management.  Divi- 
dends in  the  past  were  not  wonderful,  but  the  company  was 
then  practically  only  an  agency.  It  is  no  doubt  full  of  work 
just  now,  and  probably  the  shares  will  rise,  but  the  obligations 
are  heavy. 

C.  J.  C. — Yes,  certainly.  Include  the  dividends  in  your 
return,  and  you  will  get  the  rebate.     The  rate  at  present  is  55. 

M.  D.  F. — (i)  We  think  not  as  they  seem  fully  priced.  (2) 
Better  leave  these  alone ;  the  company's  prospects  are  not  very 
rosy.  


Lancashire  Cotton  Spinning  Profits. 

The  cotton  spinning  trade  of  Lancashire  at  the  present  time 
is  enjoying  considerable  prosperity,  and  it  is  estimated  by  lead- 
ing authorities  that  never  before  in  the  history  of  the  industry 
have  spinners  made  more  money  than  at  the  moment.  Mr. 
Frederick  W.  Tattersall,  of  Manchester,  has  prepared  an 
analysis  of  the  stocktaking  results  of  ig  large  concerns  whose 
figures  have  been  published  since  the  beginning  of  this  year. 
Six  companies  for  three  months'  trading  have  reported  a  total 
profit  of  j^28,92o,  whilst  13  companies  for  the  past  six  months 
have  made  ;,f  95,287.  The  share  capital  of  these  concerns  amounts 
to  ^669,991,  with  loans  of  £273,1^7.  .\fter  allowing  for  depre- 
ciation and  interest  on  loans  the  profit  on  share  capital  works 
out  at  over  45  per  cent,  per  annum,  whilst  on  share  and  loan 
capital  combined  there  is  a  gain  of  over  32  per  cent,  per  annum. 
These  figures  are  extraordinary,  and  it  is  expected  that  the  June 
stocktaking  results  will  also  be  very  encouraging.  A  decided 
rise  has  occurred  during  the  last  few  months  in  the  prices  of 
shares. 


t  July  1. 


f  Jan.  I.       c  From  Oct.  ,. 


Australian  cities  seem  to  be  doing  well  with  their  Tank  week, 
which  on  the  first  day  produced  ^^50,000  in  Melbourne  and 
/i5o,ooo  in  Sydney.  In  Adelaide  the  subscriptions  included 
;,f  100,000  paid  by  the  Savings  Bank,  and  in  Brisbane  the  sub- 
scriptions  amounted   to  ;^93,ooo. 


376 


XTbe  Jnvcstors'  IRevtew. 


Ai'Kii.   13,   1918. 


CHARTERED  BANK  OF  INDIA, 
AUSTRALIA  AND  CHINA. 

Head  Office  : 
38,    BISHOPSGATE,    LONDON. 


INCORPORATED    BY    ROYAL    CHARTER. 

Paid-up  Capital,  In  60,000  Shares  of  £20  each 
Reserve  Fund     


£1,200,000 
£2,000,000 


Count  of  Directors. 


SIR  MONTAGU  CORNISH  TURNER,    Chairman. 

SIR  DUNCAN  CARMICHAEL. 

THOMAS  CUTHBERTSON,  Esq. 

SIR   ALFRED   DENT,    K.C.M.G. 

WILLIAM  HENRY  NEVILLE  GOSCHEN,  Esq. 

The  RT.  HON.  LORD  GEORGE  HAMILTON,  G.C  S  I 

WILLIAM  FOOT  MITCHELL,  Esq. 

LEWIS  ALEXANDER   WALLACE,  Esq. 

Managers. 

T.  H.  WHITEHEAD.         |         W.  E.  PRESTON. 

Sub-Manager. 

J.  S.  BRUCE. 

Auditors. 

DAVID   CHARLES   WILSON,  F.C.A. 

HENRY  CROUGHTON   KNIGHT  STILEMAN,  F.C.A, 

Bankers. 

THE  BANK  OF  ENGLAND. 

THE  LONDON  CITY  &  MIDLAND  BANK.  LIMITED 

THE    LONDON    COUNTY    WESTMINSTER    &    PARR'S 

BANK,   LIMITED. 
THE     NATIONAL     PROVINCIAL    AND    UNION    BANK 

OF    ENGLAND,   LIMITED. 
THE  NATIONAL  BANK  OF  SCOTLAND,  LIMITED 


AMRITSAR. 

BANGKOK. 

BATAVIA. 

BOMBAY. 

CALCUTTA. 

CANTON. 

CEBU. 

COLOMBO. 

DELHI. 

FOOCHOW. 

HAIPHONG. 

HANKOW. 


Agencies  and  Branches. 

HONGKONG. 

ILOILO. 

IPOH. 

KARACHI. 

KLANG. 

KOBE. 

KUALA  LUMPUR 

MADRAS. 

MANILA. 

MEDAN. 

NEW  YORK. 

PEKING. 


PENAN G. 

PUKET. 

RANGOON. 

SAIGON. 

SEREMBAN. 

SHANGHAI. 

SINGAPORE. 

SOURABAYA. 

TAIPING(F.M.S.) 

TAVOY. 

TIENTSIN. 

YOKOHAMA. 


DIRECTORS'     REPORT. 

(Presented   at   the  Sixty-fourth  Ordinary  General  Meeting, 
10th  April,  1918.) 

The  Directors  have  now  to  submit  to  the  Shareholders  the 
Balance-sheet  and  Profit  and  Loss  Account  of  the  Bank  for  the 
year  ended  31st  December  last. 

These  show  a  net  profit,  after  providing  for  all  bad  and  doubtful 
debts,  of  ;f550,261  3s.  3d.,  inclusive  of /157,465  10s,  2d.  brought 
forward  from  the  previous  year.  The  Interim  Dividend  at  the 
rate  of  Fourteen  per  cent,  per  annum  paid  in  September  last  ab- 
sorbed ;f  84,000.  The  amount  now  available  is  therefore  ;^476,261 
3s.  3d.,  and  the  Directors  propose  to  pay  a  Final  Dividend  at 
the  rate  of  Fourteen  per  cent,  per  annum,  together  with  a 
Bonus  of  One  Pound  per  share,  making  nineteen  per  cent, 
per  annum  for  the  whole  year,  free  of  Income  Tax  ;  to  add 
/lOCOOO  to  the  Reserve  Fund,  which  will  then  stand  at  /2, 000, 000; 
to  add  /25,000  to  the  Officers'  Superannmtion  Fund  ;  to  write  off 
Premises  Account  /40,000,  and  to  carry  forward  the  balance  of 
;fl67,261  3s.  3d. 

A  Resolution  will  be  proposed  that  the  fees  of  the  Directors 
be  increased  to  /10,000  per  annum.  The  amount  was  fi.\ed  at 
£6,000  in  1906,  and  the  business  of  the  Bank  has  been  very  greatly 
increased  since  that  date. 

The  Directors  have  to  announce  with  regret  the  retirement 
of  their  esteemed  colleague.  Sir  Henry  Stewart  Cunningham, 
K.C.I.E,,  who  for  28  yeais  rendered  valued  service  to  the  Bank 
as  a  member  of  the  Board. 

Sir  Duncan  Carmicliael,  of  Messrs.  Gray,  Dawes,  and  Co., 
London,  has  been  elected  a  Director,  and  the  Shareholders  are 
now  mvited  to  confirm  his  election. 

The  Right  Hon.  Lord  George  Hamilton,  G.C.S.I.,  and  Mr 
William  Foot  Mitchell,  the  Directors  who  now  retire  by  rota- 
tion, present  themselves  for  re-election. 

The  Auditors,  Mr.  David  Charles  Wihon,  F.C.A,,  and  Mr 
Henry  Croughton  Knight  Stileraan,  F.C.A..  again  tender  their 
services. 

The  Dividend  and  Bonus  will  be  payable  on  and  after  Wednes- 
day,  the  17th  April. 

By  Order  of  the  Board, 

A.  8.  HEWETT,  Secretary. 


Liabilities  and  Assets,  31st  December,  1917. 
To  Capital,  60,000  Shares  of  /20each,  piud  up     ;fl,200,000 

,,  Reserve  Fund  1,900,000 

,,  Notes  in  Circulation 925,991 

,,  Current   and    Other    Accounts,    including 
Provision  for  Bad  and  Doubtful  Debts 


and  Contingencies ... 
Fixed  Deposits 
Bills  Payable- 
Drafts  on   demand   and 
at  short  sight  on  Head 
Office  and  Branches  ... 
Drafts   on   London  and 
F  oreign     Bankers 
against     security,     per 
contra 


19,349.345 
8.692,803 


0     0 

0     0 

16     1 


14     8 
3   11 


;f  552,811     1  11 


30,549  14    9 


583.360 
1.255,976 
532,500 
31,292 


16    8 
4     3 


,,  Acceptances  on  Account  of  Customers 

,,  Loans  Payable,  against  Security,  per  contra 

,,  Due  to  Agents  and  Correspondents 

,,  Sundry  Liabilities,  including  Rebates  and 

Exchange  Adjustments     1,178,901 

,,  Profit  and  I^ss  476,261 

Liability  on  Bills  of  Exchange  re-discounted, 

;f6,150,453   14s,   4d.,   of    which    ;f5,518.488  /36.126.432  12     1 
12s,  lOd.  has  run  off  at  25th  March.  1918.  ^^^^■"^^^" 

Outstanding  Forward  Exchange  Contracts  for 
Purchase  and  Sale  of  Bills  and  Telegraphic 
Transfers,  etc.,  /12, 356,483  2s.  lid. 

By  Cash  in  hand  and  at  Bankers         

Bullion  on  Hand  and  in  Transit     

Government  and  Other  Securities 

Security   lodged   against    Note    Issue  and 

Government  Deposits       

Bills  of  Exchange,  including  Treasury  Bills 

Bills  Discounted  and  Loans 

Liability   of    Customers  for   Acceptances. 

per  contra 

Due  by  Agents  and  Correspondents 

Sundry    Assets 

Bank  Premises  and  Furniture  at  the  Head 

and  Office  Branches  516.959  19     1 

Balance  of  Head  Office  and  Inter-Branch 
Remittances,  Drafts,  etc,  in  Transit     ...        6,446.493     6  10 


/e.694.145 

45.228 

3.325.977 

1.014,000 

4,337,903 

10,143.108 

1.255,976 
221,146 
125.493 


6  11 

17  11 

6  10 

0  0 
5     1 

10     1 

4     3 

1  11 
13     2 


j^36, 126.432  12     1 


Dr. 


Profit  and  Loss  Account 
For  the  year  ended  31st  December.  1917. 


To  Interim  Dividend  at  30th  June,  1917 
,,  Balance  proposed  to  be  dealt  with  as  follows  : 
Dividend,  at  the  rate  of 

14  per  cent, per  annum, 

for  the  half-year  to  date  /84,000 
Bonus  of   £1  per   share    60,000 

Reserve  Fund 100,000 

Officers'  Superannuation 

Fund 25,000 

Bank  Premises 40,000 

Carried  forward  to  Profit 

and  Loss  New  Account   167,261 


;f84,000     0     0 


0 
0 
0 

0 
0 


3     3 


Cr. 
By  Balance  at  31st  December,  1916 
Less  Dividend  for  half-year  to 
31st  December,  1916 

Bonus  of  12/-  per  share 

Reserve  Fund      

Officers'  Superannuation  Fund 
Bank  Premises 


476,261     3     3 
/560,261     3     3 

;f  427,465  10     2 


/84,000 
36,000 

100,000 
20,000 
30.000 


Gross  Profits  for  the  year,  after 
providing  for  bad  and  doubt- 
ful debts,  Excess  Profits  Duty 
and  Bonus  to  the  Staff        ...;^923.040 
Less  : — 

Expenses  of  Management  and 
General  Charges  at  Head 
Office  and  Branches        ...  520.244 


270.000    0    0 
157,465  10     2 


7     2 


14     1 


\  Accountants. 


-  402,795  13     1 
;f560.261     3     3 
T.  CUTHBERTSON,       )  === 

W.  FOOT   MITCHELL.  V  Directors. 
L.  A.  WALLACE.  ) 

T.    H.   WHITEHEAD,    )   „ 
W.   E.  PRESTON.  )  Managers. 

CHAS.    R.    HYDE, 
S.  JONES, 
London,  27th  March,  1918. 

Examined  and  found  correct,  according  to  the  Books.  Vouchers, 
and  Securities  at  the  Head  Office,  and  to  the  Certified  Returns 
made  from  the  several  Branches,  subject  to  there  being  no  direct 
verification  of  certain  Continental  Balances  which,  under  present 
conditions,  cannot  be  obtained,  and  to  the  remark  that  full  details 
and  confirmation  of  the  Inter-Branch  transactions  in  transit  at 
31st  December.  1917,  have  not  yet  come  to  hand. 

D.  C.  WILSON. 
H.  C.  K.  STILEMAN. 


Auditors. 


Printed  by  the  St.  C«w«i'TsPi«ssLTD.^Pottuga>  Street,  Kingsway,  London,  W.C,  for  the  Proprietor  of  1  he  Investors'  Review,  and  Published 
by  THE  P»oPRi*OR,  Norfolk  Houre.  Norio  k  Street.  Str«nrf    w  r.  .  _4,>rii  ,,    ,«,«  rv  »rfL/ 


(N  a36< 


TTbe 


Snveetots'  1Re\?(ew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


Voi.XLI.— No.  1,059.] 

HEW  BEBIE8.  


rBegiatered  as  an 
L    Newspaper.    J 


SATURDAY,  APRIL  20,  1918. 


[Price  6d. 


CONTENTS. 


Passing  Events: — Ministerial  Changes  —  Man-Power  Bill  — 
German  Taxation  —  National  War  Bond  Sales  —  Revenue 
—  Australasian  Gold  Production  —  Australian  Banks  — 
Standard  Bank  of  South  Africa  —  London  and  Brazilian 
Bank  —  Grand  Trunk  Railway  —  Joseph  Travers  and 
Sons  —  United  States  and  South  American  Investment 
Trust  —  Mazawattee  Tea  —  New  Transvaal  Chemical  — 
Enemy  Shipping  in  Argentine  Ports  —  Mr.  R.  Wallace 
on  the  English  and  Scottish  Education  Bills  —  "German 
Peace" —  India's  Share  of  the  War—  Prince  Lichnowsky's 
Memorandum  —  Ooregum  and  Nundydroog  (pp.  379-84). 

Leading  Articles : — Auditor-General  on  War  Waste  —  Our 
Foreign  Trade  in  March  —  By-the-Way  War  Notes  (pp. 
384-7  and  392-3). 


American    Business 
Liberty  Loan  - 


Notes  : — Steel     Trust     Prosperity   —   Third 
-Cities  Services  Co.  Results  (p.  387). 


Money  and  Credit  Notes  : — Plentiful  Credit  —  Bank  Return  — 
Exchange  Movements  —  Banking  Developments  in  New 
York  —  Royal  Bank  of  London  Absorbs  Northern  Bank  of 
Winnipeg  —  Chinese  Currency  Reform  —  Japanese  Bond 
Redemptions  —  Silver  (pp.  388-90). 

The  Week's  Stock  Markets  (pp.  390-1). 
London  Produce  Markets  (p.  391). 


Mining  News: — Transvaal  Gold  Production  —  Native  Labour 
Returns  —  Durban  Roodepoort  Deep  —  Tharsis  Sulphur 
and  Copper  —  Mason  and  Barry  —  Modderfontein  B.  — 
Knight  Central  —  Witwatersrand  Deep  —  Rose  Deep 
(pp.  395-6). 

Company  Meetings': — Canada  Steamship  Lines — W.  T.  Henley's 
Telegraph  Works  —  Ocean  Accident  and  Guarantee 
Corporation  —  Irvine's  Shipbuilding  and  Dry  Docks  — 
London  and  Thames  Haven  Oil  Wharves  —  Mappin  and 
Webb  (pp.  397-9). 


Insurance   News  ; — London  Life  Association 
—  London  and  Lancashire  (p.  399). 


British    General 


Mining  Returns  for  March  (pp.  393-4). 

Public  Income  and  Expenditure  (p.  394). 

March  Rubber  Outputs  (pp.  394-5). 

The  Week  in  Mines  (p.  395). 

Tea,  Oil,  and  Rubber  (p.  396). 

Answers  to  Correspondents  (p.  396). 

Dividends  Announced  (p.  399). 

Traffic  Returns  (p.  400). 

Company  Results  in  Brief  (p.  400). 


CANADA. 

THE  DOMINION  BANK. 

Head  Office,  TORONTO. 
Total  Assets    -      -    $;109, 436,000. 

SIR   EDMUND   B.    OSLER,  President, 
W.   D.   MATTHEWS,  Vice-President. 
C.   A.   BOGERT,  General  Manager. 


London  Branch,  73,  CORNHILL,  E.G.  3. 

J.  HAYDN  HORSEY,  Manager. 


Dealers  in  Canadian  and   American   Excliange. 
General  Banking  business  transacted.   Informa- 
tion furnishied  regarding  Canadian  matters. 


ROYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  1727. 

PAID-UP  CAPITAL £2,000,000 

REST  AND  UNDIVIDBD   PROFITS  914,968 

DEPOSITS 26,177,865 

Head    Office:    ST.    ANDREW    SQUARE,   EDINBURGH. 
Cashier  and  General  Manager,  A.  K.  Wright.         Secretary,  J.  B,  Adshead. 

London    Office:    3,    BISHOPSGATE,  E.G.  2. 
WiLLIAU  Wallace,  Manager.  Alex.  Dick,  Deputy-Manager. 

Glasgow   Office:     EXCHANGE  SQUARE. 
A.  Dennistoun,  Agent.  Thomas   Lillie,  Sub-Agent. 

167  Branclias  throughout  Scotland. 
Banking  Business  of  every  description  transacted.  Accounts  opened  and  Agency 
business  undertaken  for  Foreign  *nd  Colonial  Banks  and  other  financial  estab- 
lishments. Drafts,  Circular  Notes,  and  Letters  of  Credit  issued  — available 
tbroughout  the  world.  Cable  transfers  are  also  made.  Deposits  reoeiredat 
interest  repayable  at  oail  or  at  notice.    Correspondence  invited. 


THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 
Paid-up  Capital    ..    £2SO,000    0    0     jj.ooo  Shares  of  ;Cio  each, 
Beierve  Fund  . .    . .  £700,000    0    0  |  Reserva  Proflta    . .  £16,081 

Reserved     labilltv  of  Shareholdere  £280,000. 

Drafts  issued.  KemittAnces  cabled.  Bills  negotiated   or   collected.     Deposits 

reeeiyed  tor   fixed  periods  at  rates  to  oe  ascertained   on  application,  and  all 

bankine  and  exckange  business  counected  with  Western  Australia  conducted 

ihiougb  Ute  t/Vn^qn  ^seati,  The  Vank  •!  Adelaide,  U.  Leadeuball  St.,  E.G.  3. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the   Imperial 
Japanese  Government^  1899. 

TAIPEH,   FORMOSA. 


HEAD  OFFICE      - 


BRANCHES— Tokio,  Kobe,  Osaka,  Amoy,  Canton,  Foochow,  Hong- 
kong, Hankow,  Shanghai,  Singapore,  Swalow,  Soerabaya,  Samarang, 
Yokohama,  and  principal  towns  in  Formosa  (Taiwan),  &c 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.G.  2. 


THE  YOKOHAMA   SPECIE   BANK,  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1 880. 

Subscribed  Capital        Ven  48,000,000 

Capital  Paid  Up Yen  42,000,000 

Reserve  Fund         ..        ..  ..    Yen  22,100,000 

Head  Office :   YOKOHAMA. 
Branches  and  Agencies  at  Shanghai. 

Bombay.  Honolulu.  Newchwang.  Shimonoseki. 

Calcutta.  Hong  Kong.  New  York,  Singapore. 

Changchun.  Kobe.  Osaka.  Sydney. 

Dairen  (Dalny).  Los  Angeles.  Peking.  Tientsin. 

Fengtien  (Mukden).       Lyons.  Rang  on.  Tokyo. 

Hankow.  Manila  San  Francisco.  Tsinanfo. 

Harbin.  Nagasaki.  Seattle.  Tsingtau. 

The  Bank  buys  and  receives  tor  collection  Bills  of  Eichange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
end  transacts  General  Bankiti  g  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  apf>licatioa. 
London  Office:  7,  BISHOPSGATE.  E.G. a. 

K.  TATSUMl,  Manager. 


THE   BANK  OF  ADELAIDE. 

(Incorporated  by  Act  of  Parliament,  1865.) 
ibithorised  Capital         •    £1.000,000.  Subierlfeed  CaplUI    -    •    CI2S,000 

Paid-up  Capital        £500.000 

Reserve  Fund  540,000 

£1,040,000 

Uncalled  Capital 115,000 

Reserve  Liability  of  Shareholders       615,000 

£1,790,000 

London  Office— ri,  Leadenhall  Street.  E.G.  3. 
BILLS  on  Australasia  purchased  or  collected. 
DRAFTS  issued  and  REMITTANCES  cabled.  . 

DEPOSITS  received  for  fixed  periods  at  r  tes  to  be  ascertained  on  applioatieo. 

PERCY  ARNOLD,  Manager. 


378 


^be  Jnvestore'  tRevtew. 


April  20,  1918. 


BANKS. 


Capital  Authorised         

Capital  Issued      

Capital  Paid  Up 

Reserve  Fund  (Undivided  Profits) 


£1400,000 

1,125,000 

562^00 

708,432 


Brtnches  i 

INDIA,   BURMAH.   CEYLON,    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS,    MAURITIUS. 

The  Bank  buys  and  sells  Bills  of  Exchange,  issues  Letters  of  Credit  ami 
Circular  Notes,  and  transacts  banking  and  agency  business   in  connection  with 

the  I'.ast,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.     Rates  for  other 

periods  on  application. 

On  ouppant  aooounta  interest  is  allowed  at  a  percent,  per  annum  on 

daily  tialancei. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  i86a. 

Authorised  Capital   £4,000  000 

Paid-up  Capital  1,800,000 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mcndoza,  Concordia,  Bahia 
Blanca,  Cord6b.i.  Tucuraan,  I'arana,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires  ,  Boca  (Buenos  Aires),  Calle  Sania  F^  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires)  URUGUAY.— .Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agenov),  Salto 
(Agency).  BRAZIL  —  Rio  de  Janeiro,  "Sao  Paulo,  Santos,  Per- 
nambuco,  I'ara,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  Haldvy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 

advanced  upon  or  sent  for  collection.— 7,  Princes  Street,  E.C.  j. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 


Head  Office— 71,  Old  Broad  Street,  E.C. 

Subscribed  Capital         ^-j  276  747     10 

PaldupCapital     ..        .;        '669^685      O 

Reserve  Fund  and  Undivided  Profits         ..  375  680   1  1 

Reserve  Liability  of  Proprietors       ..         ..  606962    10    u 

REMITTANCES  tnade  by  CABLE. 
DRAFTS,   LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 

Branches  and  Agents. 
BILLS  on  Australasia  NEGOTIATED  or  sent  for  collection. 
DEPOSITS  RECEIVKD  for  periods  and  at  rates  which  may  be  aseertBkiad 

on  apiihcation,  and   Banking    Business    of    every  descnptico    oosducted 

with  Aastralia. 


o 
o 

8 

O 


ENGLISH,    SCOTTISH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

KIea.a  OfRoe— 38,  ILiombax^d  S4:i*a*4i,  E.C.  3. 

Subscribed  Capital £i.oj«,875    «    0 

Paid-up  Capital 539,43710    o 

Further  Liability  ot  Proprietors     ..        ..  539,43710    o 

Reserve  Fund 500,000    0    0 

•v^S'n"^'*?  °^  CREDIT  and  DRAFTS  on  the  Branches  and  Agencies  of 
the  Bank  in  Australia  can  be  obtained  at  the  Head  Office,  or  through  the  Agents 
01  the  Bank,  In  the  chief  Provincial  towns  throughout  the  United  Kingdom. 
REMITTANCES  made  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOTIATED  or  forwarded  for  COLLECTION. 
^^*NKING  and  EXCHANGE  B-jslneas  of  every  description  Iransaoted  with 

E.  M.  lANION,  Manager. 


BANK    OF    NEW    ZEALAND. 

{Incorporaltd  July  ngth,  1861.) 
BANKERS  TO  THE  NEW  ZEALAND  GOVERNMENT. 
London  Oifice:  i,  Queen  Victoria  Street,  London,  E.C.  4. 

AUTHORISED  CAPITAL        £5,500.000 

SUBSCRIBED  CAPITAL. 

Four  per  Cent.  Guaranteed  Stock         f  5«9,g88 

"A"    Prirference   Shares  issued  to  New  Zealand  Government        .!       500.008 

'  B '    Preference  Shares  issued  to  New  Zealand  Government        . .      250  000 

Ordinary  Shares 1.500,000 

Reserve  Fund  and  Undivided  Profits i»!Is4oW5 

Negotiates  and  collects  Bills  of  Exchange. 

Grants  drafts  on  its  Oflices  in  New  Zealand,  Australia,  Fiji  and  Samoa.    Re- 
oittanoes  made  by  telegraphic  transfer. 

ALEXANDER  KAY.  Maoager. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office  i  15,  Gracechurch  Street,  London,  E.C.  3. 


BANK  OF  NEW  SOUTH  WALES 

Established  18:7. 

Paid  up  Capital £3,904,860 

Reserve  Fund     2,876,000 

Reserve    Liability    of 

Proprietors     3,904,860 

glO, 684,720 

Head  Offlea :  8TDHET,  HEW  SOUTH  WALEB. 

London  Directors : 

Sir  Frkderick  Green,  Chairman. 

H.  L.  M.  TaiTToii,  Esq.  W*i.te«  S.  M.  Buhiis,  Esq. 

David  George.  Managtr.  J.  S.  Campbell,  Secretary. 

Halkbrstone  MsLoruv,  David  Geddib. 

Assiitant  Manager.  Accountant. 

The  Bank  has  331  Branches  and  Agencies  in  the  Australian  States, 
New  Zealand,  Fiji,  Papua  (Nf  w  Guinea),  and  London,  and  Agents  and 
Correspondents  all  over  the  World,  on  whom  the  London  Office  grants 
Circular  Letters  of  Credit  and  Circular  Notes.  Also  issuea  Draifts  on 
demand.  Makes  Mail  and  Cable  Transfers.  Negotiates  and  CoUecis 
Bills  of  Exchange.  Receives  Deposits  lor  Fixed  Periods  on  terms 
which  may  foe  known  on  application,  and  transacts  every  description  of 
Austr-ilian  Banking  business. 

London  Office:  29.  THREADNEEDLiB  STREBT.  E.C.  2. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  i83o. 

Authorised  and  Issued  Capital,  jf6, 000,000. 

Paid-up  Capital,  3^2,000,000;  Reserve  Fund,  ^2,000,000;  toeetber    £4,000,000 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OPFICe   -        -        -        71.  OORNHILL,  LONDON.    E.C.  3. 

DRAFTS  are  granted  on  the  Bank's   Branches  throughout  the   Austra.ii  n 
States  and  Dominion  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
oa  application. 


BONDS   CANCELLED. 

IMPERIAL  JAPANESE  GOVERNMENT 

41  PER  CENT.  STERLING  LOANS  OF  1905. 

The  Yokohama  Specie  Bank,  Limited.  London,  announces  that 

f  160.000  4.J  per  cent.  Sterling  Bonds  of  the  1st  Series,  and 
220,000  4i  per  cent.  Sterling  Bonds  of  the  2nd  Series,  have 
been  purchased  on  behalf  of  the  Imperial  Japanese  Government 
for  the  purpose  of  cancellation,  and  the  said  Bonds  are  now 
cancelled. 

The  quantities  and  denominations  of  the  Bonds  so  cancelled  are 
the  following ; — 


First  Series — 

20    of    ;f500 

320    of    /200 

860    of    £100 

London,  16th  April,  1918. 


Second  Series- 
525  of    /200 
804   of   /lOO 

1,730  of      /20 


^be  3nv)C0tors'  IReview. 

SCALE  OF  CHARGES  PORADVERTISEMENTS. 

PROSPECTUSES. 

Full  Page «25      O    O 

Under  one  page,  at  per  inch,  ISO 

single  column 
Special  positions  by  arrangement. 

REPORTS    OF    COMPANY    MEETINGS. 
Minimum     ...  ...  ...        £4      O     O 

PerColumn...  ...  ...  6    11     6 


BALANCE-SHEETS. 

...    £15    15 

8      2 

4       2 


O 
6 

6 


COMPANIES' 

Whole  Page 
Half  Page   ... 
Quarter  Page 

DIVIDEND    NOTICES,  &C. 

Per  Inch      ...  .'..  ...  *0    12     6 

BANKS    AND    INSURANCE    COMPANIES. 
Special  position  ...  ...  O  18    9 

Front    Page    (cover)    or   facing 

Money  Article,  per  inch      ...  £0  ISO 
Ordinary  position,  per  inch      ...  O  12    6 

Discount  for  Series. — 5%  for  Thirteen,  10%  for  Twenty-six, 
15%  for  Thirty-nine,  and  20%  for  Fifty-two. 

"  INVESTORS'  REVIEW,"   Nokfolk   Houw,  NoRfom  Stuet,  Stuand 
LOMDOM,  W.C, 


t[;be  5nveetore'  IRevlew. 


Vol.  XLI. 

New  Series. 


-No.  1,059. 


SATURDAY,  APRIL  20,  1918. 


riTX'ap."')  Price  6d. 


PUBLISHER'S    NOTICES 

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The  Editor  cannot  undertake  to  return  rejected  com- 
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Letters  from  correspondents  must.  In  every  case  be 
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exhaustion  will  also  be  given  there. 

Telegrams  advising  about  new  securities  cost  Half-a« 
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Private  letters  in  answer  to  inquiries  can  be  had  if 
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One  Guinea,  each  list  different. 


Passing    Events. 


Mr.  George,  we  fear,  has  not  increased  the  public 
confidence  in  his  Falstaff  regiment  of  a  Government  by 
his  latest  changes  in  the  personnel.  .Something  deeper 
and  more  drastic  would  be  required  to  revive  trust  in 
the  War  Cabinet  than  the  accession  to  it  of  Mr.  Austen 
Chamberlain,  painstaking  and  honest  as  that  politician 
is.  But  perhaps  he  may  have  been  taken  in  more  to 
try  to  bring  some  order  into  the  spending  of  the  public 
money  than  to  help  in  elaborating  plans  for  carrying 
on  the  war,  behind  which  seem  too  often  to  lie  motives 
of  political  strategy  at  home.  .A.nd  is  Viscount  Milner 
likely  to  inspire  enthusiasm  as  Secretary  of  State  for 
War?  What  is  there  about  Lord  Milner  which  can  stir 
loyal  feelings  of  support  in  any  patriot's  bosom?  As 
for  Lord  Derby,  the  champion  recruiter  of  his  day,  and 
the  bluff,  blundering  John  Bull  who  has  muddled  in 
so  many  capacities  since  the  war  began,  is  he  really  the 
best  man  to  send  to  Paris?  Perhaps  the  Prime 
Mini.ster  may  think  that  it  does  not  matter  who  goes  to 
Paris  as  representative  of  his  Majesty  King  George  V., 
since  "  George  L"  of  Wales  can  run  across  and  confer 
with  French  ministers,  give  them  breakfasts,  and  lunch 
or  dine  with  them  any  day  in  the  week.  So,  after  all, 
perhaps,  it  does  not  matter  much,  as  long  as  the 
worthy  politicians  permit  the  war  to  continue. 


In  one  sense  the  continued  retreat  of  our  troops  in 
Flanders  has  been  a  sort  of  political  godsend  to  the  pre- 
sent Government,  and  the  Prime  Minister's  strategy  in 
this  field  appears  to  have  justified  itself,  for  the  new 
Man-Power  Bill  went  through  the  House  of  Commons 
on  Tuesday  with  very  little  change.  It  is  regarded  as 
an  emergencv  measure,  and  was  carried  by  a  majority 
of  198  in  a  House  of  404.  The  only  important  change 
was  the  removal  of  liability  to  serve  from  men  in  holy 
order.'i,  or  regular  ministers  of  any  religious  denomina- 
tion, an  omission  which  we  regret  for  the  sake  of  those 
ministers  themselves  and  of  their  continued  utility.  It 
is  not  improbable  that  the  Irish  will  obtain,  or  have  to 
submit  to.  Home  Rule  also  under  stress  of  the  present 
emergency,  for  Mr.  George  was  quick  to  see  that  unless 
he  moved  promptly  and  with  resolution,  we  might  have 
something  very  like  an  armed  rebellion  to  contend  with 
in  Ireland  in  the  very  middle  of  our  life-and-death  con- 
flict in  Belgium  and    French   Flanders    if  conscription 


were  enforced  by  the  alien  overlord.  So  the  Prime 
Minister  pledged  himself  to  place  Home  Rule  on  the 
Statute  Book  before  conscription  is  applied  to  the  Irish 
population.  American  opinion  has  contributed  to  the 
decision  as  well  as  our  own  military  ditliculties,  for 
America  only  admits  that  conscription  can  be  legiti- 
mately applied  provided  self-government  is  given  to  • 
Ireland,  or,  as  Mr.  George  put  it,  oifered  to  Ireland.  It 
is  therefore  going  to  be  offered,  and  under  the  stress  of 
defeat  fears  the  offer  may  probably  be  accepted.  Even 
Sir  Edward  Carson  submits.  It  is  essentially  justto 
face  the  difficulty  in  this  way,  and  it  is  also  quite  legiti- 
mate political  tactics,  for  if  a  Liberal  measure  of  Home 
Rule  is  placed  on  the  Statute  Book  within  the  next  week 
or  two  it  will  be  impossible  for  the  Ulster  malcontents 
or  the  Sinn  Fein  malcontents,  for  any  body  of  the  dis- 
gruntled indeed,  to  resist  it  without  laying  themselves 
open  to  the  charge  of  disloyalty.  "  Vou  won't  have 
Home  Rule  because  you  hate  conscription,"  the  taunt 
will  then  become,  and' it  will  .sting  to  shdme  and  submis- 
sion. When  confronted  with  this  dilemma  we  hope  arid 
believe  that  Ulster  shrewdness  and  common  sense  will 
cease  its  faction  fighting  and  loyally  join  the  rest  of 
Ireland  in  doing  its  best  for  the  common  freedom.  Per- 
haps at  bottom  the  most  difficult  problem  to  solve  will 
be  the  financial  one,  but  by  behaving  with  generosity 
even  thai  may  be  surmounted  with  little  delay. 

Passed  at  the  gallop  through  the  Commons,  the 
Lords  tackled  the  Bill  at  once,  and  made  no  amend- 
ments in  it  worth  speaking  about.  What  there  were 
came  back  to  the  Commons  and  \^  ere  accepted,  and  the 
Bill  finally  received  the  Royal  Assent — became  law — on 
Wednesday  night,  just  ten  days  after  the  measure  had 
been  introduced  in  the  Commons.  Speedy  work  !  We 
hope  it  will  prove  to  be  work  well  done  and  necessary. 
Will  the  George  Ministry  exercise  equal  diligence  in 
dealing  with  the  unredeemed  pledges  given  to  Ireland? 
We  should  be  relieved  in  mind  could  we  answer 
"  Yes,"  but  fear  the  answer  must  be  a  shake  of  the 
head.  The  George  Ministry  has  many  electioneering 
and  other  worries  besides  mere  war  to  occupy  it  and 
draw  it  away  from  the  path  of  honour  and  duty.  But 
it  could,  perhaps,  find  time  to  enlighten  us  on  another 
point — the  exemption  of  the  clergy,  to  wit.  I-'rom  the 
Archbishop  of  Canterbury  downwards,  the  chiefs^  of 
the  Anglican  Church  have  repudiated  all  responsibility 


38o 


Ube  Jnvestors'  IReview* 


April  20,  1918. 


for  the  demand  for  this  special,  and  degrading,  treat- 
ment. They,  like  their  J'resbyterian  brethren  in  Scot- 
land, are  willing  and  ready  to  stand  in  the  line  or  the 
trench  with  their  fellow  citizens,  and  have  made  no 
claim  for  exemption.  Why  has  it  been  thrust  upon 
them?  We  cannot  guess.  A  malignant  spirit  says, 
"  By  the  Welsh  Baptists,"  but  we  cannot  believe  that. 
Mr.  George,  perhaps,  will  explain.  Must  do  so,  in- 
deed, for  the  injury  done  to  the  Churches  has  been 
deadly. 


The  duration  of  the  war  has  made  us  now  and  then 
disposed  to  fear  that  when  it  is  over  the  Germans  wiU 
be  too  completely  stripped  of  everything  except  the 
goods  they  have  stolen  from  the  countries  invaded  to 
be  able  to  furnish  the  Allies  with  any  substantial  in- 
demnity, even  if  they  prove  able  to  pay  for  the  restora- 
tion of  property  destroyed  in  Belgium,  Northern 
France,  Serbia,  Poland,  Russia,  Finland,  and  else- 
where. It  is  rather  cheering,  therefore,  to  be  told  from 
Berlin  that  the  new  German  taxes  are  going  to  yield 
a  splendid  revenue.  The  new  spirits  monopoly  is  ex- 
pected to  produce  ;^42, 500,000  per  annum,  additional 
taxes  on  beer  ;^i7,ooo,ooo,  on  wines  ;£r5,ooo,c)oo,  on 
champagne  ;^i,ooo,ooo,  and  even  from  mineral  waters 
and  lemonade  ;^2, 500,000  is  expected.  Then  on  coffee, 
tea,  cocoa,  and  chocolate  the  fresh  taxation  is  said  to 
be  good  for  ;<f3, 750,000,  and  another  ^6,250,000  is  ex- 
pected from  increased  postal  and  telegraph  rates.  As 
for  the  war  profits  tax,  it  is  put  at  ;^30,ooo,ooo  for  the 
fourth  year  of  the  fighting,  and  even  the  Bourse, 
through  increases  in  stamp  duty  on  bills  of  exchange, 
is  to  furnish  another  ;^i20,ooo.  Above  all,  an  exten- 
sion of  the  tax  on  the  "  turnover  "  of  businesses  is  put 
down  for  ;^"50,ooo,ooo.  Thus  in  these  various  ways 
the  increased  taxation  to  be  levied  on  the  hungry  and, 
save  for  munition  work,  idle  German  population  is  this 
year  booked  to  yield  in  all  ;^'i5S,  120,000.  This,  if 
correct,  shows  an  unexpected  capacity  in  the  people 
to  pay  their  debts,  so  wq  must  have  no  scruple  about 
putting  all  the  items  into  the  bill. 


An  official  appeal  for  more  energy  In  subscription  is 
appended  this  week  to  the  return  of  the  week's  sales  of 
National  War  Bonds  and  other  forms  of  debt  by  Mr. 
George  Sutton,  the  expert  advertising  agent  who  has 
this  business  in  hand.  The  appeal  is  quite  in  order  and 
seasonable,  for  money  is  not  coming  in  satisfactorily, 
not  at  all  to  the  measure  of  our  necessities.  For  the 
first  13  days  of  the  new  fiscal  year,  that  is  up  to  Satur- 
day last,  only  ;^28,2 15,000  in  all  has  been  encashed  as 
proceeds  of  the  sales  of  Bank  of  England  National  War 
Bonds,  new  series.  Up  to  the  end  of  the  preceding 
week  sales  of  the  Post  Office  issue  of  National  War 
Bonds  have  to  be  added,  as  also  the  amount  netted  by 
the  sale  of  War  Savings  Certificates  for  the  same  six 
days,  and  this  would  add  about  ;^2, 190,000  to  the  above 
total,  but  in  all  little  more  than  ;^30,ooo,ooo  has  in 
these  ways  been  raised  by  the  various  forms  of  debt 
within  the  current  fiscal  year.  In  the  same  13  days 
;^27,2ii,ooo  came  in  from  taxes  and  State  monopolies. 
In  all,  therefore,  about  ;^58, 000,000  has  been  provided 
from  debts  towards  the  cost  of  the  war  and  the  adminis- 
tration, but  within  the  same  period  the  expenditure  has 
been  ;^85, 000,000,  so  that  the  revenue  is  short  of  the 
amount  required  by  something  like  ;^27, 000,000.  all  of 
which  deficiency  has  to  be  provided  either  by  the  banks 
direct  or  by  the  cosmopolitan  money  market  which  cen- 
tres in  London,  that  is  to  say  either  by  trafficking  in 
Treasury  bills,  or  by  borrowing  at  call  under  temjjorary 
advances. 


And  this  sort  of  dependence  has  gone  on  for  so  long 
that_  the  Treasury  hill  debt  is  still,  in  spite  of  all  the  ad- 
vertising and  whipping  up  of  Tank  exhibitions,  business 
weeks,  and  so  fortih,  little  sihort  of  ;^i, 000,000,000. 
Well  may  the  man  in  charge  of  the  taps  plead  with 
the  public.  He  has  an  increasingly  uphill  job,  and  the 
revelations  of  the  Comptroller  and  Auditor-General  on 
the  Ministry  of  Munition®  accounts,  dealt  with  in 
another  artiole,  are  anything  but  helpful  to  the  main- 


tenance of  a  spirit  of  patriotic  self-sacrifice  in  lending. 
Against  this,  however,  we  must  now  insist  ujkmi  the 
imminence  of  our  peril  in  Flanders.  It  is  a  real  peril, 
warning  us  that  calculations  of  profit  alone  are  no 
longer  seasonable,  and  we  hope  all  other  considera- 
tions but  this,  of  the  imminence  of  our  danger,  will  be 
cast  aside.  Already,  with  many  people,  it  is  becoming 
much  less  a  question  of  sound  and  profitable  invest- 
ments than  of  the  nation's  continued  indejjendent  exis- 
tence as  a  free  State  in  a  progressive  empire,  and  the 
more  that  is  realised,  the  more  easy  should  it  be  for 
the  Government  to  finance  .  the  war  to  a  successful 
finish.  We  therefore  venture  to  hint  to  the  advertising 
agents  employed  by  the  Treasury  that  they  might  do 
wisely  in  leaning  with  greater  insistence  upon  the 
urgency  of  self-denying  sacrifice,  and  the  duty  it  lays 
upon  the  patriot  to  give  his  all  to  the  cause  of  the 
nation  and  of  mankind.  Try  aj>peals  to  patriotism  as  a 
stimulus,  in  other  words,  for  the  sentiment  is  by  no 
means  so  apathetic  amongst  the  people  as  it  sometimes 
may  seem  to  be. 


Last  week's  expenditure  was  astonishingly  modest, 
onJy  ;£'27,443,coo  all  told.  Of  this,  ;^26,264,ooo  was 
paid  out  on  "  supply,"  or  an  average  of  only 
;^3,752,ooo  p>er  diem,  and  the  total  only  ;{r3,92o,ooo 
per  diem.  The  week  before,  however,  the  expendi- 
ture was  ;^43, 160,000,  or  ;^6, 167,000  per  diem,  so 
that  it  is  by  no  means  to  be  inferred  that  economy  is 
nowtaking  the  place  of  waste  in  the  public  expenditure. 
This  ;^27,ooo,ooo  odd,  moreover,  by  no  means  repre- 
sented the  entire  turnover  of  the  week,  for  the  Govern- 
meTi,t,  in  addition,  had  to  repay  ;^7o,720,ooo  of  due 
Treasury  bills,  and  disbursed  ;<^i,ooo,ooo  as  "deprecia- 
tion "  to  sustain  market  prices — not  a  large  amount,  in 
view  of  the  depression  prevailing  at  the  moment,  but 
still  an  additional  sucker.  Also  ;^i,  126,000  of  War 
Loan  and  Exchequer  bonds  are  entered  as  paid  off, 
which  probably  means  that  this  amount  has  been  con- 
verted into  National  War  Bonds.  Altogether,  there- 
fore, the  expenditure  was  ;^ioo,548,ooo,  towar'ds  which 
the  taxes  and  subscriptions  to  new  debt  contributed 
only  ;£^55>5oo,ooo,  so  ;£'68,i93,ooo  of  new  Treasury 
bills  had  to  be  Issued,  and  ;^4, 500,000  more  was  ob- 
tained on  temporary  advances.  In  this  way,  and  with 
;^i6,704,ooo  paid  in  as  proceeds  of  National  War  Bond 
sales  and  ^1,700,000  received  from  sales  of  War 
Savings  Certificates,  the  gross  revenue  of  the  week 
was  raised  to  ;^ioi,9g4,ooo,  or  ;^i, 446,000  In 
excess  of  expenditure.  Accordingly  the  Ex- 
chequer balances  were  increased  by  this  over- 
plus to  ;^i7, 676,000.  Out  of  the  total  revenue  of 
;£'io,827,ooo,  various  forms  of  Income-tax,  including 
excess  profits  tax  and  super-tax,  provided  ;^'7,8o8,ooo, 
income-tax  of  all  kinds  having  furnished  ;£'3,883,ooo 
and  excess  profits  duty  ;^3,992,ooo.  And  now  for  the 
Budget.  "  What  do  you  think  Mr.  Law  will  projxjse 
in  the  way  of  fresh  taxation?  "  Oh,  if  he  js  indeed  a 
man  of  courage  and  insight,  he  will  make  an  effort  to 
get  money  from  all  sources,  dFrect  and  indirect ;  but, 
above  all,  endeavour  to  plant  firmly  the  foundations 
of  the  nation's  strength  on  real  wealth,  on  the  land  and 
its  yield,  on  unearned  increment,  "  abolishing  all  ex- 
ceptions "  in  finance  as  in  man-service.  And  perhaps 
the  courage  of  a  gloom-charged  hour  may  goad  him  to 
take  the  plunge.     If  not — farewell,  Mr.  Law. 

Gold  production  is  declining  in  Australia  and  New 
Zealand.  For  191 7  the  preliminary  information  is  that 
only  1,733,607  fine  ozs.  were  produced,  or  214,220  ozs. 
less  than  in  1916.  The  value  is  down  ;£r909,095  to 
;^7,363,890,  but  this  figure  is  to  some  extent  an  esti- 
mate, because  at  the  time  when  it  was  made  public  it 
was  not  known  exactly  what  the  New  Zealand  output 
had  been.  It  is,  however,  taken  in  the  official  return 
as  practically  identical  with  the  yield  for  the  preceding 
year,  and  on  the  whole  the  totals  show  a  continuous 
decline  almost  without  a  break  since  the  beginning  of 
the  present  century.  In  1901  the  weight  of  gold  mined 
in  Australia  was  3,297,228  fine  ozs.,  worth  ;£^i 4,005,732. 
The  output  rose  In  the  succeeding  year,  and  in   1903 


Ai>^iL  20,  1918. 


^be  Jnv^stors'  IRevievp, 


^381 


was  3,836,095  ozs.,  valued  at  ;£,"i 6,294,684.  That  was 
the  high  water-mark  of  the  output,  and  every  year  since 
then  there  has  been  a  decline.  By  the  end  of  the  first 
decade  the  output  had  fallen  to  2,720,000  ozs.  and  the 
value  to  ;£,!  1,554,000,  and  last  year  the  weight  was 
1,451,103  ozs.,  and  last  year  the  weight- — for  Australia 
alone,  be  it  remembered- — was  1,451,103  ozs.,  and  the 
value  _£^6, 1 64,000.  For  the  whole  17  years  the  value 
of  the  gold  mined  in  Australia  has  been  ;^20 1,97 1,640. 
New  Zealand  has  followed  much  the  same  path  on  its 
more  modest  scale.  Its  highest  output  this  century 
was  in  1906,  when  534,617  ozs.  were  produced,  worth 
;^"2,27i,ooo.  This  was  the  highest  of  five  good  years, 
the  lowest  of  which  gave  459,406  osb.  ,  and  since  1906 
there  has  been  no  output  of  more  than  472,465  ozs., 
which  was  the  figure  for  1909.  Two  years  later,  1911 
gave  an  output  exceeding  400,000  ozs.,  when  for  the 
last  time,  as  it  happened,  the  total  was  427,385  ozs.  It 
dropped  in  the  .succeeding  year  to  less  than  311,000  ozs. 
For  the  past  two  years  the  weight  has  not  reached 
300,000  ozs.  For  1916  it  was  282,319  ozs.,  and  for 
1917  is  estimated  to  have  been  282,504  ozs.  .Alto- 
gether, New  Zealand  has  furnished  ;£,29,639,903  new 
gold  to  the  world  in  the  past  17  years,  but  doubtless 
one  of  these  days  fresh  discoveries  will  be  made  if  the 
world  displays  that  hunger  for  gold  which  has  con- 
sumed it,  one  may  say,  ever  since  the  Cahfornian  dis- 
coveries away  in  the  first  half  of  last  century.  .\nd 
now  it  is  a  world  smothered  in  paper. 

Ptxxfits  of  .Australian  banks  have  not  been  so  good 
since  the  war  began  as  they  were  in  the  years  1913-14. 
A  table  going  back  to  1909,  published  by  the  Austra- 
lasian Insurance  and  Banking  Record,  gives  us  at  a 
glance  the  progress  of  these  banks  in  profit-yielding 
capacity.  It  does  not  include  the  Commonwealth  Bank 
of  Australia,  but  other  banks  transacting  business 
in  Australia  and  New  Zealand  are  all  embraced  in  the 
return.  It  shows  that  the  total  nett  profits  of  these 
banks  was  ;^9o8,ooo  in  1899,  ^tJ  ""ose  to  ;^3,267,507 
in  1914.  Expansion  was  progressive,  and  almost  with- 
out a  halt  or  recoil  for  all  save  the  latest  three  of  the 
twenty  years  covered  by  the  return.  And  it  is  once 
more  worthy  of  remark  that  the  banks  seem  to  have 
become  more  conservative  in  the  distribution  of  their 
profits  as  time  went  on.  In  1899  72.68  per  cent,  of  the 
profits  was  distributed  in  dividends,  but  that  figure  was 
never  approached  again  until  1915,  when  70.35  per  cent, 
of  the  nett  profits  was  handed  as  dividend  to  the  share- 
holders. In  1916  the  proportion  rose  to  71.35  per  cent., 
but  last  year  it  was  brought  down  again  to  rather  less 
than  68  per  cent.  In  the  intervening  years  the  pro- 
portion of  profits  given  to  the  shareholders  as  dividend 
varied  from  63  per  cent,  down  to  less  than  54  per  cent. 
This  means  that  throughout  the  period  the  controllers 
of  these  important  banks,  21  in  number,  have  been 
solicitous,  directly  and  indirectly,  to  strengthen  their 
reserves,  and  it  is  well  to  emphasise  that  policy,  because 
adherence  to  it  must  have  done  much  to  fortify  the 
banks  and  enable  them  to  recover  from  the  troubles  of 
1893  and  to  give  them  strength  now  to  bear  the  strain 
of  the  war.  Last  year  profits  came  to  ;£'3,i92,i27,  and 
only  ^2,170,117  of  this  was  distributed  as  dividends. 
No  dividends  were  increased,  but  in  some  cases  the 
former  rate  was  paid  on  a  rather  larger  amount  of  share 
capital.  On  the  capital  alone  the  average  rate  the 
banks  were  able  to  distribute  was  c).58i  per  cent,  last 
year,  and  on  the  capital  and  reserve  funds,  taken  to- 
gether, the  return  was  5.626  per  cent. 

If  evidence  were  required  of  the  improved  condition 
of  affairs  at  the  Cape  it  would  be  found  in  the  report 
of  the  Standard  Bank  of  South  Africa,  Ltd.,  for  the 
past  year.  The  accounts  are  presented  in  a  .slig'htly 
different  form,  but  the  nett  profits  come  out  ^^42,000 
larger  at  ;^4o6,7oo,  in  addition  to  which  ;^i3,ooo 
more  was  brought  in,  and  only  ;,£^io,ooo,  against 
;^8o,ooo,  has  to  be  written  off  for  investment  depre- 
ciation. Consequently  the  shareholders  are  to  get  a 
bonus  of  IS.  4d.  as  well  as  the  usual  dividend  of  14s., 
or  14  per  cent.,  and  the  carry  forward  Is  doubled  at 
;^204,ooo.     The  reserve  fund  remains  at  two  millions. 


against  a  paid-up  capital  of  ;^i, 548,000.  Deposit  and 
ciirrent  accounts  have  increased  ;^"7, 600,000  to 
^^32,980,000,  notes  in  circulation  ;^6oo,cioo  to 
;£,"2, 1 55,000,  and  customers'  bills  for  collection 
^825,000  to  ^'3,953,000.  Cash  balances  have  risen 
;4'i, 600,000  to  ;^'7, 792,000,  bills  of  exchange  pur- 
chased j£^3, 400,000  to  ^'7, 865,000,  and  loans,  &c., 
three  millions  to  ;^i9, 264,000.  Investments  are  a 
Tittle  higher  at  ^3, 767,000,  and  the  total  of  the 
balance-sheet  is  fully  nine  millions  up  at  ;^44, 230,00c, 
so  that  everything  looks  as  healthy  as  could  be  desired. 

In  spite  of  rather  adverse  conditions,  the  London 
and  Brazilian  Bank,  Ltd.,  was  able  to  hold  its  own 
bravely  in  the  year  to  January  31.  Gross  profits  in- 
creased ;^7o,ooo  to  ;^57i,5oo,  while  expenses  were 
only  ;^'33,ooo  higher,  and  with  a  slightly  larger 
balance  brought  in  there  is  ;^39,ooo  more  for  dis- 
posal at  ^'537,400.  .After  repeating  the  dividend  and 
bonus  of  16  per  cent.,  ;^25,ooo  is  written  off  premises 
and  ;^i  2,000  is  allocated  as  a  bonus  of  7J  per  cent,  to 
the  staff  (both  new  items),  leaving  ;^3oo,40o,  or 
;^i,5oo  more,  to  be  carried  forward.  Current  and 
deposit  accounts  have  risen  ;^766,ooo  to  ;^9,368,ooo, 
but  bills  payable  are  ;^920,o6o  down  at  _^2,6i 8,000. 
Cash  in  hand  has  fallen  ^580,000  to  ;^4, 365,000,  hills 
receivable  are  ;^i,025,ooo  lower  at  ;^i,955,ooo,  and 
remittances  in  transit  ;^250,ooo  at  ;^i,  168,000,  but 
discounts  and  advances  have  incrertsed  ;^i, 665,000  to 
^8,125,000.  The  nett  result  of  the  changes  leaves 
the  total  of  the  balance-.sheet  practically  unaltered  at 
;^i9,228,ooo.  At  ;^i,4oo,ooo  the  reserve  fund  ex- 
ceeds the  paid-up  capital  by  ;^i 50,000. 


We  dealt  fully  a  few  weeks  ago  with  the  position 
and  prospects  of  the  Grank  Trunk  Railway  Co.  of 
Canada,  and  need  now  only  give  a  summary  of  the 
past  year's  figures.  Gross  receipts  amounted  to 
;^io,725,ooo,  an  increase  of  ^^906, 000.  Passengers 
yielded  ;£.^i2i,5oo  less,  but  freight  and  other  receipts 
brought  in  ;£■!, 027,000  more.  Unfortunately  expendi- 
ture advanced  no  less  than  ;^i, 775,000  to  j£,g,oo2,ooo, 
the  ratio  to  receipts  rising  from  73. 60  per  cent,  to  83.94 
per  cent.  With  rather  more  nett  revenue  credits,  the 
total  income  is  ;£'2, 269,000,  or  ;^832,ooo  less  than  in 
1916,  and  unfortunately  fixed  charges  required 
;^34o,ooo  more,  the  deficit  on  the  Detroit,  Grand 
Haven  section  showing  an  increase  of  ^103,000,  while 
the  Grank  Trunk  Western  has  to  be  paid  ;^95,ooo, 
whereas  a  year  ago  it  brought  ;^a  19,000  to  credit. 
Last  year  ;£^40o,ooo  was  set  aside  for  contingencies, 
and  the  full  dividends  were  paid  on  the  guaranteed  and 
preference  stocks.  This  time  nothing  whatever  can 
be  distributed  on  these  issues,  the  surplus  after  meeting 
charges  being  only  ;^26,300,  against  ;^8o2,3C)o.  This, 
added  to  the  amount  brought  in,  makes  ;^46,300, 
which  is  carried  forward.  Authority  has  been  obtained 
to  raise  rates  15  per  cent,  as  from  March  15,  but  until 
expenses  can  be  reduced  to  a  more  moderate  figure 
(and  they  show  a  tendency  to  increase  rather  than 
diminish)  the  outlook  cannot  be  regarded  as  particu- 
larly brilliant. 


Although  a  firm  of  produce  merchants  like  Joseph 
Travers  and  Sons,  Ltd.,  must  have  experienced  great 
difficulties  in  carrying  on  their  business  owing  to 
restrictions  on  imports  and  other  disabilities,  the  year 
ended  January  3*1  was  a  very  good  one.  Trading 
profits,  after  providing  for  excess  duty,  amounted  to 
;^i 56,700,  and  with  the  balance  brought  in  the  total 
available  is  ;^i82,4c>o.  After  paying  debenture  in- 
terest and  setting  aside  ^100,000  for  reserves  and 
depreciation,  It  Is  proposed  to  pay  a  bonus  of  5  per 
cent,  in  addition  to  the  dividend  of  10  per  cent.,  and 
the  balance  remaining  is  ;^i,ooo  larger  at  ;^25,i50. 
It  is  a  fine  old  business,  which  has  always  enjoyed  an 
excellent  reputation,  and  we  are  glad  to  see  that  it  is 
doing  well  in  these  trying  times.  Last  year  the  chair- 
man stated  that  the  profits  represented  only  about  2 
per  cent,  on  the  overturn,  which  is  certainly  not  ex- 
cessive, and  no  question  of  "  profiteering  "  arises  In 
this  case. 


3^2 


tS^be  investors'  IReview. 


April  20,   «9i8. 


In  spite  of  increased  taxation  the  United  States  and 
South  American  Investment  Trust  Co.,  Ltd.,  managed 
to  secure  ;^2,7oo  more  nett  revenue  in  the  year  to 
April  4,  the  total  being  ;^7o,900.  Including  ;^io,ooo 
l)rought  in  and  deducting  debenture  interest,  there  is 
a  I)alance  of  ;6'55,95o,  out  of  which  5  per  cent,  is 
again  paid  on  the  ordinary  stock  and  ;^5,oog  is  set 
aside  to  write  down  certain  securities.  There  then  re- 
mains ;6 13,450  to  be  carried  forward.  Owing  to  the 
abnormal  conditions  resulting  from  the  war  it  Has  nol 
been  practicable  to  make  a  trustworthy  valuation  of 
investments.  Particulars  of  purchases  and  sales  dur- 
ing the  year  are  furnished,  as  well  as  a  complete  list 
of  the  .securities  held.  Nett  changes  in  the  balance- 
sheet  are  unimportant,  and  investments  stand  in  the 
books  at  ;^i, 826,000,  or  just  about  the  same  as  last 
time.  

Substantially  better  results  were  obtained  by  the 
.Vlazawattee  Tea  Co.,  Ltd.,  in  the  year  to  December 
21.  Trading  profits  amounted  to  ;^50,ioo,  an  increase 
of  j;^! 5,000,  and  with'  ;^'6,ooo  more  brought  in  the 
balance,  after  providing  for  debenture  and  other 
charges,  is  ;^22,20o  up  at  ;^'63,ioo.  This  allows  of 
the  payment  of  two  years'  arrears  of  preference  divi- 
dend, ab.sorbing  ^,"26,400,  and  leaving  ;^36,7oo  to  be 
carried  forward.  There  are  still  two  years  of  arrears, 
and  it  will  be  seen  that  they  might  have  been  cleared 
off  by  reducing  the  balance  forward,  but  in  view  of 
the ,  uncertain  outlook,  it  is  prudent  policy  to  keep  a 
substantial  amount  in  hand.  Investments  have  been 
written  down  by  ;^8,72o,  and  now  stand  at  the  market 
value.  H!xcept  that  stocks  show  an  increase  of 
;^45,ooo  at  ;^i84,ooo,  while  debtors  are  ;^4i,ooo  lower 
at  ^^144,000,  changes  in  the  balance-sheet  are  unim- 
portant.   — 

Although  the  mining  industry  in  South  Africa  has 
not  been  particularly  prosperous  of  late,  the  New 
Transvaal  Chemical  Co.,  Ltd.,  continues  to  make  sub- 
stantial progress.  In  the  year  to  June  30  last  the 
profits,  including  ;^2,26o  brought  forward,  amounted 
to  ;^'76,4O0,  an  increase  of  j^i  1,000,  which  follows  a 
gain  of  ;^28,ooo  in  the  previous  12  months.  After 
writing  off  £7,750  for  depreciation,  alx>ut  the  same  as 
last  time,  the  dividend  of  20  per  cent,  is  repeated,  and 
the  carry  forward  is  increased  to  ;^i  1,100.  During 
the  year  24,000  shares  have  been  issued,  raising  the 
capital  to  ;^534,900.  Creditors  have  risen  ;^fx),ooo 
to  ;^i28,ooo,  and  bankers'  advances  are 
^'47,000  up  at  ;^'i75,ooo.  Cash  balances  are  rather 
smaller,  but  investments  have  increased  ;£73,oco  to 
;^553,ooo,  and  stocks  ;^86,ooo  to  ;^i 59,000.  Every- 
thing looks  healthy,  but  while  conditions  are  so 
favourable  it  would  be  prudent  to  establish  the 
nucleus  of  a  reserve  fund. 


It  seems  that  there  are  .something  like  70,000  tons  of 
German. and  Austrian  shipping  lying  idle  in  Argentine 
ports.  Argentina  is,  so  far,  a  neiitrail  country  an  this 
war,  and  cannot  use  these  ships,  nor  can  it  allow  the 
.\Uies  to  seize  tihem  for  their  use.  So,  as  there  are 
very  few  neutral  or  .'Mlied  vessels  available,  the  pro- 
duce with  which  .'\rgentina  is  now  loaded  up  cannot  be 
exported.  The  Germans  have  given  not  a  few  provo- 
cations to  the  Argentine  Governineat  to  assert  itself 
and  range  alongside  Brazil  and  the  United  States  of 
North  America,  but  nothing  has  been  done.  There- 
fore the  economic  development  of  the  republic  is  being 
stifled.     How  long  is  that  going  to  la.st? 

Mr.  Robert  Wallace,  Professor  of  Agriculture  and 
Rural  Economy  in  tihe  University  of  EdinburgJi,  has 
addressed  an  open  letter  to  the  Prime  Minister  on  the 
Engli.sih  and  Scottish  Education  Bills.  In  this  letter 
he  urges  a  postponement  of  these  measures  until  after 
the  war,  as  well  as  their  effective  recasting.  He  holds 
them  to  be  legislation  "  dangerous  to  the  .staWlity  of 
the  Empire  and  subversive  to  the  soundest  canons  of 
education."  The  language  is  strong,  and  sometimes, 
perhaps,  even  a  little  fierce,  but  Mr.  Wallace  will  find 
many  sympathisers  with  his  point  of  view,  especially 


amongst  Scotsmen  who  were  educated  before  modern 
theories  and  conditions  came  to  prevail  over  the  educa- 
tion of  the  young,  only  25  per  cent,  of  whom  are  pro- 
bably capable  of  literary  intellectual  training.  The 
fundamental  purpose  underlying  all  school  education 
"ought  to  lie  to  fit  the  individual  for  the  business  ol 
life,"  says  Mr.  Wallace,  and  he  is  unquestionably 
right  in  adding  that  our  education  fails  in  attaining 
that  object  becau.sc  it  scatters  and  wa.s^tes  its  forces  in 
so  many  directions.  From  the  point  of  view  of  practi- 
cal life,  the  English  Education  Bill  now  hung  up  in 
order  that  a  "  Man-Power  "  Bill  may  be,  in  hot  haste, 
raced  into  law,  is,  it  has  all  along  seemed 
to  us,  an  aristocratic,  or  at  least  an  acade- 
mic, affair,  involving  enormous  charges  upon  the 
revenue  which  we  .shall  be  in  no  position  to  meet,  so 
Mr.  Wallace  need  not  be  too  anxious.  Circumstances 
will  force  the  country  to  fall  back  on  .simpler  methods 
and  to  follow  a  le-ss  ambitious  programme^  The  niun- 
ber  of  subjects  which  are  embraced  even  now  in  the 
current  system  of  educjition,  and  which  are  su{^x>sed 
10  be  taught  to  the  pupils  of  even  our  board  schools, 
demonstrates  the  unpractical  character  of  those  at  the 
head  of  educational  affairs.  And  the  worst  of  it  is 
that  in  all  the  .schemes,  as  in  curreat  usages,  there  is 
never  any  atterrvpt  to  reduce,  .still  less  to  obliterate,  the 
hard  and  fast  lines  drawn  between  the  classes  by  acci- 
dents of  birth  or,  still  ux>rse,  by  length  of  purse.  Our 
great  public  schools  do  not  exist  for  the  purpose  of 
educating  the  young  of  the  wealthy.  They  exist  to 
nurture  class  exclusivcness,  and  success  in  such  pur- 
pose is  much,  more  easily  attained  by  devoting  the 
minds  of  the  pupils  to  "  sf)orts  "  than  by  really  teach- 
ing them  what  might,  if  they  had  the  brain  power  and 
the  necessity  to  exercise  it,  make  them  useful  members 
of  the  community.  But  post-war  exigencies  are  going 
to  change  much,  even,  perhaps,  to  appropriate  for 
practical  u.ses  many  educational  endowments  now  mis- 
applied. 


We  are  getting  interesting  glimpses  of  what  a 
"  German  peace  "  means  in  the  fragments  of  news 
which  come  from  Russia  and  Rumania.  No  sooner 
was  the  mocking  treaty  of  peace  signed  between  Prus- 
sian officials  and  sundry  irrcspon.sible  Russian  anar- 
chists than  Germany  began  a  new  war  of  conquest. 
The  Russian  armies  had  been  destroyed  by  neglect,  be- 
trayal, and  corruption ;  the  first  Government  substi- 
tuted for  that  of  the  Tsar  had  been  swept  away  b\ 
German  agents  with  the  help  of  anarchists  and  revolu- 
tionaries, and  the  way  thus  cleared  for  the  German 
troops  to  renew  their  plundering.  They  have  not  only 
been  adivancing  info  the  interior  of  Russia,  winning 
their  way  there  in  spite  of  resistance  now  and  then 
strenuous,  and  ijito  Finland,  where  they  had  to  fight 
three  days  for  Helsingfors,  but  now  it  is  announced 
that  Livonia  and  Esthonia  are  to  be  annexed  to  Ger- 
many. The  Kaiser  announces  this  consummation  ,of 
his  ambitions  in  that  quarter  in  these  words: — "  1 
heartily  thank  God  for  allowing  me  and  my  armies  to 
be  the  in.strument  of  the  liberation  of  the  Baltic  Pro- 
vinces and  for  enabling  me  to  place  on  a  safe  basi«  the 
future  of  the  old  country  created  by  German  labour." 
Tliis  is  his  way  of  putting  it.  What  the  people  of  the 
annexed  territories  will  think  of  it  little  time,  we 
hope,  may  be  needed  to  show.  Germany  has  not  vet 
quite  annexed  Little  Russia  or  Ukrainia,' nor  have  the 
Hohenzollern  Kaiser's  hordes  been  able  to  strip  the 
country  of  much  food,  because  the  food  is  not  there ; 
but  the  preliminaries  to  absorption  go  on,  and  Ger- 
many is  busy  revealing  to  the  world  with  what  con- 
tempt her  masters  regard  any  treaty.  Look  at  the  con- 
tempt thrown  upon  the  one  just  concluded  with 
Rumania.  Hardly  was  the  ink  of  the  signatures  dry 
when  it  was  notified  to  tihe  fettered  and  gagged 
Rumanian  Government  that  German  troops  intend  to 
remain  in  the,  for  the  moment,  submerged  kingdom  for 
years  to  come.  Perhaps  as  excuse  for  committing  this 
fraud,  a  levy  of  ;^i6,ooo,ooo — not  ;^4oo,ooo,ooo,  as 
the  ne\yispapers  count  it — ^has  been  made  upon  the 
Rumanian  population  by   way  of  "indemnitv. "       All 


April  20,  1918. 


^be  investors'  IRevtew* 


383 


this  is  most  useful  as  object-lessons  to  us  in  the  West. 
But  the  day  of  retribuition  draws  inexorably  nearer. 
Russia  is  ^already  turning  on  her  betrayer  and  oppres- 
.sor,  and  as  she  turns  she  mast  be  helped. 

An  Indian  correspondent  in  Karachi  has  voiced  in 
the  Times  a  complaint  about  the  inadequacy  of  the 
share  taken  by  India  in  the  burdens  of  the  war.  He  is 
not  the  first  to  complain.  It  has  beco'me  suddenly 
fashionable  to  regard  India  as  a  rich  country.  The  war 
may  be  said  to  have  brought  us  back  in  this  respect  to 
the  old  days  of  the  Indian  nabob,  when  it  was  popu- 
larly supposed  that  the  wealth  of  the  peninsula  was  in- 
exhaustible. Only  in  modern  days  have  students  of  the 
country's  circumstanoes  come  to  realise  that  India  is  a 
poor  country,  that  the  bulk  of  its  population  is  probably 
among'st  the  poorest  of  the  world,  but  that  lesson  never 
sunk  very  deep  in  the  popular  mind,  and  therefore  the 
proclamation  of  its  wealth  now  being  made  falls  on 
willing  ears.  "  The  country  is  bursting  with  pro- 
sperity," says  this  correspondent,  "and  the  great 
towns  are  so  gorged  with  money  paid  out  by  the  Mili- 
tary Department  that  dangerous  orgies  of  trade  specu- 
lation liave  frequently  succeeded  each  other."  Surely, 
then,  this  is  a  case  for  the  tax-collectors'  energie's  to 
be  exercised  with  effect,  and  when  we  are  told  that 
during  the  current  year  India  is  providing  only 
;^iS,ooo,ooo,  and  Great  Britain  ;;^73, 000,000,  of  the 
war  expenditure  Jaid  upon  India,  we  know  wihat  the 
inference  is  to  be.  India  must  submit  to  further  taxa- 
tion, something  must  be  done  to  check  the  rise  in 
prices,  and  it  is  clearly  wrong  for  nearly  live-sixths  of 
the  ;^i2o,ooo,ooo  of  military  expenditure  in.  India  to 
I>e  laid  upon  the  British  taxpayer.  We  fear  there  is 
trouble  coming  in  India  if  a  message  of  this  kind  is  to 
Ik;  taken  as  a  measure  of  oiu"  understanding  of  the  real 
economic  position  of  that  dependency.  True  enough, 
certain  sections  of  the  community  are  flushed  with 
wealth,  product  of  war-engendered  credit;  true  also  that 
India  has  had  several  good  harvests  in  succession,  and 
that  high  prices  have  been  obtained  by  the  cultivators, 
so  that  they  also  are  probably  better  off  than  usual ;  but 
these  passing  changes  in  the  fortunes  of  the  peop'le  do 
not  indicate  substantial  increases  in  wealth  among  the 
masses.  If  India  were  really  becoming  rich,  w'hy  is  its 
population  unable  to  subscribe  forthwith  the  whole  of 
that  ;^ioo, 000,000  loan  which  the  British  rulers  have 
offered  as  India's  contribution  to  the  cost  of  the  wiar? 
We  shall  probably  have  demands  for  fresh  taxation  in 
India,  and  in  our  extremity  these  demands  will  be 
listened  to,  endorsed  by  Parliament  here,  and  forced 
upon  the  British-Indian  administration  by  the  Home 
Government.  There  will  be  trouble  in  India  if  that 
should  happen.  For  the  war  is  bringing  far-reaching 
changes  in  the  relation  of  the  United  Kingdom  to 
every  one  of  its  colonies  and  dependencies. 


peace.  Their  very  existence  is  a  monstrous  Jae.  It  is 
interesting,  in  a  secondary  degree,  to  note  how  the 
Prince  was,  in  his  simplicity,  used  as  a  tool  by  the 
cunning  knaves  in  Berlin,  and  more  interesting  still  to 
observe  how  a  loyal-minded  man^  could  be  deceived  and 
led  wberever  they  chose  by  his  masters.  Prince  Lich- 
nowsky's  estimate  of  Viscount  Grey  and  Mr.  Asquith, 
and  of  other  members  of  the  British  Government  and 
Government  officials  with  whom  he  came  in  conitact,  is 
also  worth  noting  and  presierving,  'because  there  is  no 
German  venom  lin  anything  the  Prince  says.  But  then 
he  is  a  Pole,  not  a  Prussian,  and  that  may  account  for 
much.  A  Prussian  would  not  have  ibeen  able  to  sum  up 
the  sociability  of  the  English  aristocracy  or  governing 
classes  as  this  Pole  has  done.  "  The  Briton,"  ,he  says, 
"  loathes  a  bore,  a  schemer,  and  a  prig;  he  likes  a 
good  fellow.  Social  adaptability  nowhere  plays  a 
greater  r61e  than  in  England.  A  hospitable  house,  with 
pleasant  bosits,  is  worth  more  than  the  most  profound 
scientific  knowledge ;  a  savant  with  provincial  maruiers 
and  .small  means  would  gain  no  influence,  in  sipite  of 
all  his  learning."  In  this  last  judgment  we  think  the 
Prince  wrong,  but  .his  general  appreciation  of  our  social 
groups  among  the  privileged  classes  is  something 
that  no  mere  Prussian  could  have  attained  to.  Another 
interesting  portion  of  the  pamphlet  deals  with  the  fate 
of  those  treaties  of  amity  and  loyal  co-ojieration  which 
the  Prince  sought  to  conclude  between  his  country  and 
the  British  Empire ;  and  Professor  Murray  does  well  to 
insist  upon  the  significance  of  his  failure  in  the  interest- 
ing preface  he  writes.  Lichnowsky  dreamt  of  England 
and  Germany  working  together  for  the  common  good, 
for  the  advancement  of  their  legitimate  interests  in  the 
East  and  elsewhere.  He  sought  to  bring  about  an 
agreement  over  the  Bagdad  Railway,  and  treaties  were 
actually  drawn  up  on  this  and  other  explosive  points 
in  the  long  rivalry,  but  they  were  never  ratified  by  Ger- 
many, and  never  meant  to  be.  The  German  people,_led 
like  silly  sheep  by  the  designing  and  greedy  Prussian, 


A  complete  translation  of  Prince  Lichnowsky's 
Memorandum  on  his  Mission  to  London,  1912-1914,  has 
been  published  by  Messrs.  Cassell,  with  a  preface  from 
the  pen  of  Professor  Gilbert  Murray,  and  it  is  to  be 
had  at  any  bookstall,  or  in  any  bookseller's  shop,  for 
6d.  nett.  On  the  Continent,  especially  in  the  two 
heaven-abandoned  empires,  Prince  Lichnowsky's  reve- 
lations have  made  a  tremendous  sensation,  at  least,  the 
newspapers  tell  us  that  they  have ;  but  here  they  have 
not  caused  much  stir,  because  for  us  they  really  con- 
tain nothing  new.  We  were  aware  from  the  first, 
and  all  the  lying  of  the  Prussians  notwithstanding,  that 
Viscount  Grey  laboured  to  the  utmost  to  maintain  peace, 
laboured  mistakenly  as  it  has  turned  out,  because, 
even  if  peace  had  been  patched  up  in  19 14,  it  could  only 
have  led  to  the  slow  destruction  of  our  civilisation  as 
l^^-surely  as  war  is  doing,  though  not  so  swiftly.  For 
the  entire  Teutonic  peoples  were  mad  and  longing  for 
Pwar  as  being  the  sum  of  human  good.  The  memo- 
randum is,  however,  well  worth  reading  and  preserving, 
for  it  opportunely  enforces  the  warning  to  have  nothing 
to  do  with  the  dominant  military  castes  of  either  the 
Habsburg  or  Hohenzollern  empire.  Both  are  equally 
untrustworthy,  equally  cruel  and  rapacious  in  war  as  in 


New  Zealand. 


A  Wealthy  Country,  Splendid  Climate,  Fertile 
Soil,  Plenty  of  Water. 

An  Ideal  Country  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  population,  has  an 
annual  export  of  raw  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IBON,  TIMBER, 
GUM,  GOLD  AND  SILVER.  Total  yield  ol  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  iiave  been  advanced 
by  Govemmentto  Farmers  and  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 
The  Railways,  3,000  miles.  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State. 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  new 
country,  New  Zealand  offers  solid  advantages. 
Excellent  Steamship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Shipping  Company. 
Limited,  and  the  Federal  and  Shire  Lines. 


Full  information  is  supplied  fiee  by 

THE  HIGH  COHHISSIONER  FOB  NEW  ZEALAND. 

413-416,  STRAND,  W.C.  2. 


384 


tibe  Jnvestors'  IReview. 


April  20,  1918. 


were  caper  for  war,  so  eager  that  at  the  end  of  nearly 
four  years  of  exhausting  strife  they  do  not  seem  yet  to 
have  made  up  their  minds  that  they  have  had  enough 
of  it ;  that  war  is  ruin  and  self-annihilation  for  those 
who  wage  it  to  steal. 

Two  Indian  gold  mining  reports  are  to  hand  this 
week,  the  Ooregum  and  Nundydroog.  It  is  rather  sur- 
prising to  find  that,  despite  the  shortage  of  labour  and 
the  difficulty  and  expKtnse  of  getting  mining  materials, 
the  Ooregum  should  actually  have  established  a  fresh 
record  of  gold  production  in  191 7.  The  output 
amounted  to  £38^,7^7  as  compared  with  ;^368,289. 
This  was  due  to  a  further  improvement  in  the  yield, 
and  the  profit  was  ;^2,934  larger  at  ;^i70,282.  It  is 
proposed  to  pay  a  final  dividend  of  is.  6d.  per  share 
on  both  classes  of  shares,  bringing  the  total  distribu- 
tions up  to  40  per  cent,  on  the  preference  shares  and 
30  per  cent,  on  the  ordinary,  the  same  as  for  1916.  In 
future  it  is  proposed  to  pay  dividends  half-yearly.  The 
working  costs  show  a  reduction  of  ;^  1,689,  ^he  total 
cost  f)er  ton  being  2d.  lower  at  25s.  8Jd.,  due  to  a 
lesser  quantity  of  tailings  treated  and  a  reduced  amount 
of  development  work.  The  reserve  insurance  and  con- 
tingency funds  have  been  increased  by  ;^6,ooo  to 
;^94,243,  and  ;^25,ooo  against  ;^26,ooo  has  been 
written  off  profits  for  depreciation.  Reserves  of  ore 
have  been  reduced  from  421,000  tons  to  414,783  tons, 
and  the  present  position  is  such  as  to  necessitate  the 
milling  of  a  slightly  lower  grade  of  ore,  so  that  a  re- 
duction both  in  output  and  profit  is  to  be  expected  this 
year.  On  the  other  hand,  the  Nundydroog  produced 
last  year  ;^3,438  less,  the  total  being  ;^337.348-  This 
decrease  was  due  to  a  falling  off  in  the  tonnage  treated. 
Extraction  improved  from  93.35  to  96.1  per  cent.,  and 
a  further  advance  is  expected  this  year.  Working 
costs  were  ;^9,8i4  larger,  so  that  the  profit  was 
;^i3,oii  less  at  ;^i4i,S58.  A  final  dividend  of  is.  2d. 
per  share,  less  tax,  is  proposed,  making  the  total  dis- 
tribution 3s.  4d.  instead  of  3s.  6d.  per  share,  leaving 
;^3,o85  to  be  carried  forward.  Like  the  Ooregum,  this 
company  has  also  decided  to  pay  dividends  half-yearly 
in  future.  Reserves  of  ore  have  been  reduced  by  14,500 
tons  to  202,800  tons.  Capital  expenditure  amounting 
to  ;^37,502  has  been  charged  against  profits.  Experi- 
ments have  proved  that  the  accumulated  slime  at  the 
mines  on  the  Kolar  field  can  be  used  in  making  bricks, 
crucibles,  &c.,  suitable  for  mining  purposes.  A  com- 
pany, called  the  Kolar  Brickmaking  Co.,  has  been 
formed,  with  a  capital  of  ;^io,ooo,  to  carry  on  this 
novel  enterprise.      ^^ 

Auditor-General  on  War  Waste. 

Two  extremely  interesting  reports  have  recently  been 
issued  by  the  Comptroller  and  Auditor-General  (Mr. 
H.  J.  Gibson)  dealing  with  t)he  accounts  of  the  Army 
and  the  Ministry  of  Munitions,  and  a  perusal  of  the 
documents  leaves  a  feeling  of  almost  stupefying  de- 
pression. War  conditions  must,  in  the  nature  of 
things,  be  wia&teful,  and  we  have  a  well-deserved  repu- 
tation for  the  stupidest  sort  of  prodigality  in  military 
expenditure.  TJiat  has  been  sufiiciendy  serious  in  some 
of  our  m,inor  campaigns,  but  with  the  enormous  sums 
involved  in  the  present  wx>rld  upheaval,  every  pound 
mis-sipent  helps  to  retard  the  normal  progress  of  our 
civilisation.  In  the  reports  before  us  we  get  merely 
a  hint  of  the  many  miUionis  that  must  have  been  use- 
lessly squandered  during  -the  past  four  years.  Even 
Mr.  Gibson  cannot  probe  things  to  the  bottom;  over 
and  over  again  he  states  that  his  staff  could  only  deal 
with  "test-examinations"  of  what  appeared  to  be 
the  more  flagrant  items,  and  if  a  strict  audit  could  be 
made  of  the  whole  of  our  war  expenditure  we  are 
certain  the  results  would  be  very  much  more  appalling 
than  tihe  illustrative  examples  which  he  has  been  able 
to  dig  out,  bad  as  they  are.  They  all  point  to  the 
same  conclusion,  that  the  present  system  of  guarding 
the  nation's  finances  is  fundamentally  bad  and  utterly 
futile.  One  of  the  chief  fiuictions  of  the  House  of 
Commons  is  the  control  of  expenditure,  and  we  now- 


pay  the  MembeiTs  ;^400  a  year  to  attend  to  their  duties. 
But  only  a  few  take  a  living  interest  in  financial  ques- 
tions, and  they  are  regarded  as  "  cranks,"  which,  un- 
fortunately, is  .sometimes  the  case.  Is  it  too  much  to 
expect  that  this  attitude  sJiould  be  altered?  Cannot 
some  scheme  be  devised  by  which  every  competent 
member  .shall  work  on  one  or  more  committees  con- 
stantly supervising  the  accounts  of  the  various  depart- 
ments and  sub-departments,  which  have  multiplied  like 
rabbJtis  irv  the  past  few  years?  It  is  perfectiy  obvious 
that  the  Audit  Department  has  broken  down  from  sheer 
physical  inability  to  tackle  the  inextricable  mess  of 
bungling  incompetence  presented  to  it  for  unravelment, 
and  we  have  not  the  slightest  doubt  that  Mr.  Gibson 
would  welcome  any  scheme  which  would  make  his 
duties  at  the  same  time  more  efficient  and  less  arduous. 
Something  of  the  kind  will  have  to  be  done,  but  we 
suppose  it  will  l>e  another  case  of  the  stable  door  being 
locked  after  the  .steed  is  stolen. 

On  the  whole,  the  Arnry  comes  through  the  ordeal 
of  the  audit  better  than  might  have  been  expected 
under  tlie  circumstances.  It  is  stated  that  officers 
dealing  with  Army  funds  have  not  generally  derived 
;iny  personal  pecuniary  advantage  from  their  financial 
irregularities,  and  we  may  ^ke  great  comfort  from 
that,  considering  the  temptations  placed  in  their  way 
and  the  impossibility  for  any  ordinary  human  being 
keeping  within  the  bonds  of  War  Office  red-tape.  The 
accounting  failure  is  ascribed  to  the  exigencies  of 
active  service,  to  inability  of  Pay  Offices  to  deal  with 
accounts  promptly,  to  some  extravagance  on  the  part 
of  inexperienced  officers,  but  primarily  to  the  failure  of 
company  and  other  officers  to  keep  and  render  proper 
accounts,  largely  owing  to  the  complexity  of  Army 
Regulations  and  to  lack  of  accounting  experience 
among  officers  of  itihe  new  armies.  Sir  Wm.  Plender, 
himself,  mig'ht  fail  to  get  a  "  first  "  under  these  con- 
ditions, and  what  better  could  be  expected  from  the 
students,  clerks,  and  citizens  who  have  stepped  into 
the  breach?  It  is  therefore  satisfactory  to  learn  that 
the  Treasury  is  pressing  the  War  Office  to  consent 
to  the  appointment  of  a  .small  committee  to  consider 
the  si'mplification  of  the  whole  system  of  Army  pay, 
allowances,  &c. ,  but  "the  matter  is  still  the  subject 
of  correspondence  between  the  Depwrtments,"  and  we 
must  leave  it  at  that  for  the  present,  merely  expressing 
a  pious,  if  not  very  sanguine,  hope  that  something 
will  come  of  the  recommendation.  Here  it  may  be 
useful  to  show  how  the  630  millions  spent  on  the 
Army  in  1916-17  were  allocated,  and  the  figures  for 
the  previous  year  are  given  for  comparison  : — 


Gross 

Expenditure 

1916-17. 


Army  P«y,  &c.  . .   

Medical  Establishment :  Pay,  &c 

Special  Reserve 

Territorial  Forces 

Establishment  for  Military  Education.. 
Quartering,  Transport,  and  Remounts.. 

Supplies  and  Clothing 

Ordnance  Department,  &c 

Armaments  and  Aviation  

Works  and  Buildings 

Miscellaaeous  Services    

War  Office 

Half-pay,  Retired  Pay,  Ac, Officers,  &c. 

Pensions,  &c.,  for  Men,  &c 

Civil  Superannuation,  &c 

Balances  Irrecoverable  


£ 

144,916,273 

9,868,827 

39.331 

J.537.319 

214.452 

99.010,800 

265,241,358 

39,754,868 

26,758,972 

27,601,870 

1,746,866 

1,378,623 

3.770,147 

7.675.365 
107,987 
240,400 


Gross 

Expenditure, 
I9I5-J6. 


629.863,458 


£ 

107,278,449 

7,971,882 

54.887 

1,683,051 

212,580 

97,656.805 

216,703,890 

50,134,813 

23.346.537 
28,636,327 

1.505.155 

955.703 

3,188,847 

3,674,485 

123,448 
60,689 


543.t87.548 


Most  of  the  increase  must  be  attributed  to  the  expan- 
sion of  the  Army  in  the  period  under  review.  Regi- 
mental pay,  &c.,  required  115  millions,  against  87 
millions,  and  separation  allowances  amounted  to  78 
millions,  against  53  milli.ons,  while  provisions  cost  106^ 
pgainst  8oi  millions.  We  need  not  go  deeply  into  the 
other  details,  but  may  mention  that  in  addition  to  the 
;^240,ooo  shown  as  cash  balances  irrecoverable, 
.^475,000  of  stores,  &c.,  disappeared.  The  total  is 
large,  but  the  percentage  is  not  excessive.  Only 
;^3,8oo  in  cash  was  lost  through  fraud  or  gross 
negligence,  but  ;^i 50,000  of  stores,  &c.,   came  under 


April  20,  1918. 


TLbc  Jnvestora'  IReview. 


3«S 


the  same  category.  On  the  other  hand,  ;^237,cxx)  in 
cash  and  ^"325,000  in  stores  came  under  the  heading  of 
military  losses  or  accidents,  and  we  are  not  disposed  to 
cavil  at  the  amount,  although  it  by  no  means  discloses 
the  whole  story,  but  merely  what  the  Auditor-General 
has  been  able  to  trace.  Under  existing  conditions  it  is 
perhaps  just  as  well  to  draw  a  curtain  over  the  rest. 
Among  losses  owing  to  gross  negligence  are  included 
_^'59,300  for  a  vessel  sunk  in  the  Red  Sea,  ;^24,3O0  for 
a  tug  lost  in  a  gale  off  the  Isle  of  Man  owing  to  the 
master  disobeying  sailing  instructions,  and  ;^28,8oo  for 
stores  lost  in  a  fire  supposed  to  be  due  to  incendiarism. 
Losses  by  actual  fraud  are  comparatively  trifling.  In 
the  other  category  we  find  ;^89,500  for  deficiencies  of 
supplies  due  to  inaccurate  accounting  during  a  period 
of  great  pressure,  ;£^23,50O  lost  in  a  fire  the  origin  of 
which  could  not  be  accurately  determined,  and 
;^i37,ooo  lost  through  the  fall  of  Kut-el-Amara.  Re- 
peatedly the  reasons  given  for  deficiencies  are  extreme 
pressure  of  work  and  the  inexperience  of  officers,  which 
may  be  regarded  as  perfectly  valid  excuses.  When  the 
items  are  examined  (and  there  are  17  pages  of  them) 
the  indictment  is  not  nearly  so  serious  as  it  appears  at 
first  glance,  and  with  simplified  methods  it  is  pretty 
certain  that  the  losses  could  be  reduced  to  a  minimum. 

In  the  case  of  the  Ministry  of  Munitions  allowance 
must  be  made  for  the  fact  that  the   Department  was 
hurriedly  organised,  and  a  large  proportion  of  the  staff 
had  to  be  drawn  from  anywhere  and  everywhere.     But 
when  every  excuse  of  that  kind    has    been    made    the 
record  of  muddling  and  waste  is  appalling.      The  ex- 
penditure of  the  Ministry  in  the  year  1916-17  amounted 
to  ;i^522, 400,000,  of  which'  ;^i,i77,ooo  was  for  head- 
quarters and  branch  offices,  ;£^8, 728,000  for  inspection, 
research     and     store     departments,     ;^'2,o85,ooo     for 
housing  schemes,  and  ;^5to,ooo,ooo  for  guns,   muni- 
tions,    and     miscellaneous     supplies.      The     Auditor- 
General  states  that  it  was  onlyvpossible  for  his  Depart- 
ment  to  provide  trained  officers  for  the   audit  of  the 
Ministry's  accounts  to  an  extent  very  limited  relatively 
to  the  mass  of  transactions,  and  it  was  therefore  neces- 
sary to  work  on  the  principle  of  maintaining  a  general 
surveillance,  and  addressing  more  detailed  test  exami- 
nations to  sections  which'  appeared    the    most    imme- 
diately important.     It  was  admitted  in  evidence  given 
before  the  Committee  of  Public  Accounts  last  year  that 
the  accounts  of  certain  branches  of  the  Ministry  were 
in  urgent  need  of  improvement,  and  it  is  reassuring  to 
learn  that  great  improvements  have  now  been  effected, 
particularly  in  the  direction  of  increased  accuracy  and 
promptitude  in  recording  current  transactions,  and  fur- 
ther changes  are  in  progress  with  a  view  to  placing  the 
accounting  system  on  a  sounder  basis.     Investigation 
into  the  earlier  records  of  the  Ministry  has  been  greatly 
hampered  owing  to  documents  having  been  mislaid — 
most  probably  "  snowed  under  "  masses  of  unnecessary 
detail  and  useless  forms,  while  sums  running  into  many 
millions  were  gaily  squandered  without  the  remotest  re- 
gard to  business  principles.     An  aspect  of  the  Ministry 
accounts  which  has  been  continuously  unsatisfactory  is 
the  frequency    and    amount    of   duplicate   payments  to 
contractors  in  respect  of  the  same  supply.      The  most 
frequent  source  of  error  is  payment  being  authorised 
on  a  duplicate  invoice,  the  original  having  already  been 
paid  ;  but  other  cases  are  equally  disquieting,  including 
one  large  payment  both  by  the  Ministry  and  by  a  local 
committee.      Assurances  have  been  given  that  steps  are 
being  taken  to  guard  against   the  recurrence  of  such 
incidents,   but  it  is  reported  that  only  recently  a  con- 
tractor was  paid   twice   a  sum    of  ^111,360,    and  on 
calling  the  attention  of  the  Department  to  the  fact,  he 
received  a  further  sum  of  ;^2 1,540,  which  also  had  been 
previously  paid.      And  all  the  time  he  was  indebted  to 
the  Department  for  a  very  considerable  amount  in  re- 
spect of  materials  supplied  ! 

It  would  be  possible  to  fill  several  columns  with  in- 
stances of  the  grossest  laxity  or  carelessness,  but  we 
must  be  content  to  quote  a  few  of  the  more  prominent 
examples.  For  some  months  no  steps  were  taken  to 
recover  ;^230,ooo  advanced  to  a  firm  under  a  contract 
Avhich     was     afterwards     cancelled.      An    advance    of 


;^250,ooo  to  the  same  firm  had  not  been  charged  in  th'n 
contract  ledger,  while  two  other  advances  amounting  to 
;£,"750,ooo  had  been  posted  twice  in  the  same  ledger. 
In  another  case  overpayments  to  the  amount  of  . 
;^"7i8,ooo  had  been  made  to  a  firm  which  was  paid  full 
price  for  certain  articles,  although  large  quantities  of 
components  had  been  supplied  to  it.  Investigation 
showed  that  payments  to  the  firm  continued  even  after 
the  claim  for  refund  had  been  preferred,  and  only 
;£'209,ooo  had  been  recovered,  leaving  ;^  509,000 
owing.  Another  firm  received  advances  amounting  to 
;£^874,ooo,  which  were  repayable  with  interest  by  de- 
duction of  60  per  cent,  from  the  bills  for  manufactured 
articles,  but  the  firm's  bills  for  large  amounts  vvere  paid 
without  deduction,  and  even  after  the  principle  was 
adjusted  no  charge  was  made  for  interest.  In  March, 
igi6,  the  Ministry  deqided  to  reduce  the  price  of  a 
certain  type  of  .shell  from  20s.  to  12s.  6d.,  and  one  firm 
had  offered  in  the  previous  month  to  accept  14s.  8d. 
But  the  new  tender  form  was  not  returned,  and  large 
quantities  of  shell  continued  to  be  sent  in  till  February, 
1 91 7,  and  paid  for  at  the  £1  rate.  In  another  case  the 
contract  ledger  recorded  payments  of  ^1,400,000  only, 
although  ;^4, 700,000  had  actually  been  paid.  The 
greater  part  of  the  deliveries,  valued  at  over 
p£:4,ooo,ooo,  was  handed  over  to  another  firm  under 
an  assembling  contract,  but  no  charge  was  entered  In 
the  ledger  against  thisi  firm,  nor  were  any  steps  taken 
to  secure  the  return  of  the  goods  supplied.  The  Audi- 
tor-General grimly  remarks  :  "  In  May  last  I  asked 
for  explanation  and  further  information,  but  I  have  not 
yet  received  a  reply." 

As  an  illustration  of  the  excessive  profits  which  con- 
tractors were  allowed  to  make,  the  case  may  be  cited 
of  a  firm  to  which  ;^i 3,000  was  advanced  towards  the 
cost  of  plant  required,  and  it  was  agreed  to  pay  36s.  per 
100  for  filling  gaines.  The  price  was  to  cover  the  first 
100,000  delivered,  after  which  it  was  to  be  revised  and 
the  material  for  filling  was  to  be  delivered  free  of  charge 
at  the  works.  The  Auditor-General  found  that  up  to 
the  beginning  of  December  last  the  firm  in  question  had 
delivered  over  4,000,000  gaines  at  the  original  price, 
while  other  contractors  were  supplying  similar  goods  at 
14s.,  14s.  3d.,  and  17s.  6d.  per  100.  Again,  for  certain 
wagons  and  limbers  the  work  was  ultimately  given  to 
sub-contractors  who  had  been  working  for  armament 
firms.  The  oulv  firm  among  the  latter  who  tendered  for 
the  contract  quoted  ;^ioo  in  excess  of  the  accepted 
figure.  In  another  case,  .some  3,000,000  complete 
rounds  of  iS-pounder  ammunition  were  ordered  to  be 
broken  up  owing  to  defects,  but  it  was  found  impossible 
to  locate  the  fault  in  such  a  way  as  to  justify  a  claim 
against  the  suppliers.  'V\'hat  may  have  been  lost  by 
stupidity  in  embarking  on  hopeless  experiments  can 
only  be  conjectured,  but  a  case  is  cited  where  ;^57.ooo 
was  spent  on  converting  a  plant  for  the  manufacture  of 
.  toluol  at  an  estimated  cost  of  5s.  per  gallon,  w'hereas 
it  actually  came  out  at  47s.  6d.,  and  the  most  favour- 
able revised  estimate  was  26s.  for  this  process,  while 
the  Department  was  actually  purchasing  the  material 
at  3s.  4|d.  per  gallon.  .\nd  so  the  indictment  goes  on, 
almost  every  step  showing  a  lack  of  capacity  which 
would  be  incredible  outside  Bedlam. 

A   fruitful  source  of  loss    is    the    "free"    issue _  of 
materials  to  contractors.     \''ast  quanitities  of  materials 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its   Policyholders   in   1917  over 
£9,700,000 

or  over  £31,000  for  each  Working  Day. 


386 


5be  Jnvestore'  IReview. 


April  20,  19(8. 


and  oompoiMMits  of  immense  value  have  been  handed 
out  for  assemWing  or  manufaotaring  operations,  and 
in  many  cases  the  supplies  in  various  stages  of  manu- 
facture have  been  passed  from  contractor  to  con- 
tractor. No  adequate  record,  however,  has  been  kept 
of  tihe  issues  from  the  Ministry's  stocks  or  of  the  move- 
ments between  comtractors,  and  it  is  impossible  to  esti- 
mate wbat  tfliis  absence  of  system — ^ihe  A. B.C.  of  ac- 
counting— ^has  cost  the  country,  but  it  m^ust  run  into 
scores  of  miUions.  As  an  illustration  of  what  hajypens, 
we  may  mention  that  of  ;^47,ooo,ooo  worth  of  raw 
materials  shipped  from  America  during  the  period  to 
March  31,  1917,  the  disposal  of  ;^3, 000,000  had  not 
been  traced  in.  December  las.t.  Admittedly,  there  are 
difhcukJes  where  the  conversion  of  values  under  dif- 
ferent contracts  comes  into  play,  but  not  even  a  rough 
and  ready  .system  of  stock  checking,  which  would  avoid 
the  most  serious  wastage,  seems  to  have  been  de- 
vised, and  we  are  told  that  not  much  progress  has  been 
made  in  this  direction  by  the  internal  audit  department 
of  the  Ministry.  Again,  huge  sums  have  been  ad- 
vanced to  contractors,  and  no  adequate  arrangements 
have  been,  made  for  repayment  or  for  the  charging  of 
interest  where  that  is  due.  In  one  case,  ;^6,9oo,ooo 
was  advanced  to  a  firm,  but  after  ;;^2, 100,000  was  re- 
covered repayments  ceased.  The  precise  condition  of 
affairs  is  not  clearly  defined  either  in  the  books  of  the 
company  or  those  of  the  Ministry,  and  pending  further 
investigation  the  question  of  repayment  is  left  in  abey- 
ance. Interest  on  loans  seems  to  have  been  treated  as 
a  negligible  quantity,  and  in  the  case  of  one  firm 
nothing  was  claimed  in  respect  of  loans  for  ^{^4,500,000 
until  over  twelve  months  had  elapsed,  and  the  amount 
ili'e  {£232,000)  was  not  settled  for  another  month. 

Capital  expenditure  also  appears  to  have  been  re- 
garded as  an  elastic  item  of  no  importance.  A  filling 
factory  estimated  to  cost  ;^264,ooo  ran  to  ;;^i,  153,000 
by  the  end  of  March,  1917,  and  another  estimated  at 
;^663,ooo  cost  ^"2, 200,000,  while  further  expenditure 
on  these  and  other  smaller  concerns  of  a  similar  char- 
acter has  occurred  since.  Cases  of  that  kind  are  too 
numerous  to  mention.  With  regard  to  the  explosion 
at  SiJvertown,  it  is  stated  that  as  a  result  of  an  in- 
spection, conditions  were  found  to  exist  which  were  a 
conitributory  cause  of  danger  in  earlier  cases  of  acci- 
dent, and  improvements  were  in  the  course  of  being 
carried  out  when  the  explosion  occurred.  Very  heavy 
expenditure  in  this  connection,  we  are  told,  will  be 
brought  to  .account  in  subsequent  years.  It  is  a  dismal 
record  from  start  to  finish,  and  it  is  the  more  disturb- 
ing because  over  and  over  again  we  find  that  the 
Auditor-General  has  to  report  that  "  no  reply  to  my 
communications  has  been  received."  It  looks  as 
though  the  Ministry  is  not  only  incom.petent  at  manag- 
m.g  Its  business,  but  resents  every  eflfort  to  get  it  on  to 
reasonably  sound  lines.  How  much  might  have  been 
saved  if  it  had  taken  the  ordinary  precautions  that 
a  private  firm  would  have  regarded  as  elementary  ?  Ah 
well  It  might  be  30,  40,  or  50  per  cent.,  but  we  have 
no  means    of  estimating    an    approximately    accurate 


Alfred  K»  n  \f*i"l*""*'  Ltd.,  has  appointed  Mr. 
*nH  r.  f  ^  Bright  of  the  firm  of  Messrs.  Gibbs,  Bright 
q?r  wVi-      H,°°«  °f.tl^e  head  office,  Melbourne,  directors,  vice 

v^L^A  r^  ,  ;  1'"'"^  r^°  '^«"*'y  "-esigned  on  being  ap- 
pointed   Chief  Justice  of  Victoria. 

In  their  usual  fashion  the  Prussians  are  laying  out  the  future 
Of  the  Balkans  just  as  if  their  victory  was  complete  and  all 
^o^'.  *»  .t"  ^"^-  ""'g^"«  J^s  been  demanding  Salonika  as 
?n  Lk,-  Pu"'^,/1'^  ^^"^  ^"  ^°^  destroying  her  population 
K  ♦   !^V^  V*'^  Hohenzollern   battle  in   South-Eastern   Europe ; 

?,?  tWvf  ♦  fV'"?  *\^^  ^'^  *'^  ^^""<^t  ^  f"'fi"«l.  l>«^"se 
r;hr»l.n  V  ^"S't"!  ^«f»sing  to  surrender  Cyprus,  MalU, 
rV^^J^!'  ?Sy?',  =^".f    the  occupied  districts  of   Palestine  and 

bi^Tf^i'r  ''",'''?."  *°  ^  ""^^^  ^  ^'^  ^^'^o"^  ^nd  naval 
^™i,  J  Central  Powers,  while  being  l«ft  nominally  in 
Greek  possess.on  Docs  William  Hohen^Ilern  expect  to  see 
his  brother-in-law  back  ,n  Athens  soon?  Other  territorial 
questions  that  involve  conflict  of  greeds  between  Bulgaria, 
I"'.o*r  Germany  and  Austria,  including  the  so-called  fre^ 
route  to  Constanza  and  a  free  port,  are  said  to  be  among  the 
thorny  Balkan  problems  that  Herr  Helfferich  is  expectSd  to 
solve,  aiid  we  may  leave  him  alone  at  his  job.  It  will  probably 
leave  him  among  the  unemployed  soon. 


Our  Foreign  Trade  in  March. 

Conditions  last  month  in  regard  to  our  overseas 
commerce  were  much  the  same  as  those  to  which'  we 
have  become  accustomed  recently.  There  has  again 
been  a  huge  advance  in  imports  (the  total  of  which  for 
a  single  month  has  only  once  been  exceeded),  largely 
owing  to  the  rise  in  prices,  while  the  shrinkage  in  ex- 
ports continues  to  a  rather  alarming  extent,  and  the 
total,  including  re-exports,  is  the  smallest  recorded 
since  191 5.  If  a  reasonable  allowance  is  made  for 
higher  prices,  the  contraction  in  the  volume  of  our 
foreign  trade  begins  to  look  serious,  but  it  is  an  inevi- 
table result  of  the  prolongation  of  the  war,  and  what 
cannot  be  cured  must  be  endured.  .'\.pf>ended  is  our 
usual  summary  of  the  figures  for  the  month  and  the 
year  to  date  : — 


Imports  . . . 
Exports  . . . 
Re-exports. 


March, 
19:8. 


Z 

107.235,460 

36,002,315 


Compared 
with  1917. 


+  26,089,590 

—  8,108,816 

—  4.377.980 


Compared 
with  1916. 


■f  21.119.591 
—  1.595.804 
5.619,970 


Three  Months. 


Imports 

Exports 

Re-exports 

Excess  of  imports 


305,186,481 

116,767,731 

9.122,329 


179,296,421 


-♦-  62,625,829 

—  11,491,428 

—  15.870.247 


+  89,987,504 


-I-  76,894,232 
+  6,076,663 
—  17,049,136 


-f-  87,866.705 


Imports  of  food,  &c.,  increased  ;^7, 236,000,  or  about 
20  per  cent.  We  received  a  million  (8^  per  cent.)  less 
grain  and  flour,  but  meat  imports  show  an  increase 
of  ;^4,o8o,ooo,  or  50  per  cent.,  and  other  non-dutiable 
foodstuffs  advanced  ;^2, 760,000,  or  nearly  30  per  cent., 
while  dutiable  articles  (mainly  sugar  and  tea)  rose 
;^698,ooo.  In  view  of  the  rapid  decline  in  tobacco 
stocks,  to  which  we  have  called  attention  for  the  last 
few  months,  it  is  satisfactory  to  find  that  the  imports 
increased  ;^740,ooo,  or  340  per  cent.,  but  thanks  to 
the  amazing  wisdom  of  our  mandarins,  we  are  not 
allowed  to  know  what  this  represents  in  bulk.  Awk- 
ward questions  might  be  raised  when  the  forthcoming 
advance  in  prices  takes  effect.  Of  raw  materials,  we 
imported  over  eleven  millions  more,  although  rubber 
shows  a  decrease  of  fully  two  millions.  Timber  in- 
creased two  millions  to  ;^2, 847,000,  and  the  quantity 
rose  from  43,600  to  153,800  loads.  Raw  cotton  almost- 
doubled  in  price  at  ^"13,876,000,  but  the  amount  was 
only  7  per  cent,  larger  at  1,398,000  centals.  Wool  in- 
creased over  60  per  cent,  in  value  and  35  per  cent,  in 
quantity,  and  oil  seeds,  nuts,  &c.,  advanced  ;^8oo,ooo, 
or  14  per  cent.  Papier-making  materials  rose  ;^705,ooo, 
or  225  per  cent.,  and  the  increase  in  quantity  was 
relatively  even  larger,  but  the  unfortunate  consumer 
is  not  yet  allowed  to  derive  any  benefit  from  the  im- 
provement. As  regards  manufactured  articles,  the  in- 
crease is  ;^7, 700,000,  or  60  per  cent.,  mainly  owing  to 
miscellaneous  purchases  on  Government  account. 
Metals  other  than  iron  and  steel  rose  over  a  million, 
and  there  was  an  increase  of  ;^i, 140,000  in  chemicals, 
dyes,  &c.,  but  leather  fell  ;£r920,oc)o,  and  there  werc- 
small  declines  under  most  of  the  other  headings. 

Apart  from  trifling  increases  in  chemical  manures 
and  salt,  every  important  item  in  the  expiort  fist  shows- 
more  or  less  heavy  decreases  in  quantity,  and  even  as 
regards  values  the  advances  are  few  and  far  between. 
Shipments  of  food  and  drink  fell  off  ;^i, 200,000. 
mainly  in  respect  of  spirits,  beer,  and  biscuits.  Raw 
materials  dropped  ;^853,ooo,  coal  falling  13  per  cent, 
in  amount  and  7  per  cent,  in  value,  wool  over  70  per 
cent.,  and  oil  seeds,  &c.,  40  per  cent.  ."Vrticles  wholly 
or  mainly  manufactured  declined  ;^5, 600,000,  and  the: 
only  important  gain  was  in  cotton  piece  goods,  which 
fell  32  per  cent,  in  quantity,  but  advanced  8  per  cent, 
in  price.  Iron  and  steel  dropped  50  per  cent,  in  quan- 
tity and  40  per  cent,  in  value,  and  exports  of  machinerv 
also  lost  40  per  cent.  Woollen  materials  droppied  45 
per  cent,  in  amount,  but  only  16  per  cent,  in  value, 
while  worsted  50  per  cent,  and  28  per  cent,  respec- 
tively. Altogether  it  is  rather  a  dismal  record,  and 
the  figures  for  the  quarter,  which  give  us  a  wider  view 
of  the  {josition,  are  not  much  more  reassuring.      The- 


Aj-rjl  20,  1918. 


Zbc  investors'  IRevicw* 


387 


gap  between  imports  and  exports  steadily  widens,  and 
for  the  past  three  months  it  amounts  to  nearly  180 
millions,  or  at  the  rate  of  over  700  millions  per  annum. 
That  is  a  heavy  bill  to  meet  by  some  means  or  other, 
and  the  threatened  further  disorganisation  of  business 
under  the  Man-Power  Bill  will  not  tend  to  help  matters. 
Nothing  in  the  bonded  warehouse  account  is  of  much 
interest,  except  a  further  drop  in  the  stock  of  tobacco, 
which  has  been  reduced  to  114,430,000  lbs.,  against 
238,300,000  lbs.  at  the  end  of  March  last  year.  Stocks 
of  tea  are  a  little  higher  at  93,140,000  lbs.,  or  rather 
larger  than  a  year  ago,  and  with  121,148,000  gallons 
of  home-made  spirit  in  bond  there  is  no  fear  of  a 
shortage  except  such  as   is   artificially  created. 


American  Business  Notes. 

That  It  should  he  permanent  ground  for  rejoicing  wc  are 
not  sure,  but  for  the  time  being  no  words  are  too  emphatic  in 
characterisation  of  the  stupendous  prosperity  of  the  United 
States  Steel  Corporation.  In  the  language  of  the  New  York 
Commercial  Chronicle,  its  report  for  the  year  1917  is  "  mar- 
vellous," and  what  it  would  have  been  had  not  I'resident  Wilson 
interfered  to  put  a  stop  to  the  soaring  flight  of  prices  we  can- 
not even  imagine.  The  taxes  paid,  federal  and  other,  including 
those  imposed  by  the  entry  of  the  United  States  into  the  war, 
amounted  to  no  less  than  $233,465,435,  or  ;£46,7oo,ooo.  There 
is  not  another  corporation  of  any  kind  in  the  world  that  could 
have  stood  a  levy  of  that  magnitude  and  remained  solvent,  but 
the  great  steel  combination  of  the  United  States  not  only  found 
these  taxes,  but  had  enough  money  crt'er  to  meet  debt  charges, 
the  full  7  per  cent,  on  its  preferred  stock,  and  to  pay  18  per 
cent,  in  all  on  its  ordinary  stock,  viz.,  5  per  cent,  of  regular 
dividend,  12  per  cent,  of  extra  dividend,  and  i  per  cent,  of 
"charity"  dividend  contributed  by  it  to  the  United  States 
Red  ("ross  organisation.  All  this  was  done,  and  $107,505,437 
were  left  over  as  surplus  undivided.  During  the  year,  more- 
over, the  expenditure  made  by  the  subsidiary  companies  of 
the  corporation  on  additions  and  extensions  was  $117,977,000 
nett,  but  of  that  only  $29,'^85,ooo  was  charged  to  income.  Of 
the  surplus  just  mentioned,  however,  $55,000,000  was  taken  to 
meet  expenditure-,  in  various  directions,  and  only  $52,545,(Xk) 
added  to  the  surplus  already  accumulated.  The  company  also 
remains  exceptionally  strong  in  rash  and  deposit  money,  the 
increase  on  the  year  having  been  nearly  ^^9,000, 000.  or  over 
$44,000,000.  and  the  aggregate,  including  United  States 
Liberty  Loan  bonds  and  Treasury  certificates,  was  $233,047,000 
at  the  end  of  the  year.  The  investments  were  thus  about  equal 
to  the  amount  paid  in  taxation.  It  is  altogether  a  most  remark- 
able record,  the  more  so  as  the  redemption  of  the  corporation's 
debt- goes  on  regularly,  and  at  good  speed.  That  is  to  say,  the 
nett  decrease  in  the  bonded,  debenture  and  mortgage  debts  <A 
the  corporation  was  $16,759,188  last  year.  The  amount  of  steil 
produced,  however,  was  less  than  in  1917,  its  blast  furnaces 
having  turned  out  only  15,652,928  tons  compared  with  17,607,637 
tons  in  1916.  In  steel  ingots  also  the  quantity  produced  fell  off 
from  20,910,589  tons  to  20,285,061  tons,  but  in  money  value  the 
increase  in  the  business  was  41.3  per  cent,,  the  total  overturn 
rising  from  $853,264,000  to  $1,205,882,000.  "As  indicating  the 
effects  of  rising  prices,"  the  Chronicle  puts  it,  "along  with 
the  larger  business  on  the  entire  operations  of  the  Steel  Corpora- 
tion, the  aggregate  gross  receipts,  including  gross  sales  and 
earnings  for  191 7,  were  $1,683,963,000."  For  1914  the  aggregate 
wa.s  only  $558,415,000,  and  for  1916  it  was  only  $1,231,474,000. 

When  we  come  to  the  record  of  the  total  output  of  steel  for 
the  whole  of  the  United  States,  the  impression  left  after  an 
examination  of  the  United  States  Steel  Corporation  figures  is 
only  heightened.  According  to  the  American  Iron  and  Steel 
Institute,  last  year  38,647,397  tons  of  iron  were  produced  in  the 
Republic.  This  is  787,400  tons  less  than  the  output  of  1916, 
but  as  recently  as  1914  the  total  was  only  23,332,244  tons.  Last 
year's  demand,  however,  was  no  smaller  than  the  previous 
year's ;  on  the  contrary,  it  was  heavier  ;  but  the  war  had  begun 
to  produce  scarcity  of  labour,  and  that  in  turn  tended  to  re- 
strict output.  In  war  directions,  however,  there  were  also 
compensations,  as  is  proved  by  the  return  relating  to  the 
article.^  exported.  In  al!  forms  the  weight  of  iron  and  steel 
exported  in  1917  was  6,440,867  tons,  and  going  back  to  1914  the 
total '.exported  was  only  1,638,829  tons.  All  descriptions  of 
iron  and  steel  goods  were  not  wanted  in  the  same  feverish 
haste  or  magnitude  as  in  the  earlier  year,  but  pig-iron,  sheets 
and'  plates,  hoops,  bands  and  scrolls,  &c.,  went  out  of  the 
country  in  larger  quantities,  and  somewhat  balanced  decreases 
in  other  directions.  It  was  in  the  prices,  however,  that  the 
magnitude  was  most  marked.  In  lanuary  pig-iron  wa-s  quoted 
at  $31  per  ton;  in  July  it  reached  $55.  or  over  /'ii,  but  on  Sep- 
tember 22  the  Government  fixed  it  at  $33  not  only  for  domestic 
consumers,  but  for  the  Allies  as  well.  Steel  billets  were  sold  at 
$60  in  the  beginning  of  la.st  year,  or  about  doub'e  that  of 
January,  1916,  and  rose  at  one  time  to  $100.  No  wonder  the 
Government  interfered.  Tn  October  last  the  War  Indu.stries 
Board  and  the  Steel  Producers  agreed  and  fixed  the  maximum 
al  S47.50  T>er  ton.     .\nd  .so  on  throughout. 

The  subscriptions  to  the  third  Liberty  Loan  in  the  United 
States  are  proceeding  on  the  same  generous  scale  wjiich  marked 


previous  efforts  to  raise  money.  It  was  ^600,000,000  "that  tht 
Washington  Treasury  asked  for,  and  already  the  subscriptions 
have  exceeded  ;^  1,000,000,000.  Meanwhile  it  seems  to  be  turn- 
ing out  that  the  secretary  to  the  Treasury's  estimate  of  total 
expenditure  for  the  current  year  has  erred  on  the  side  of  excess, 
and  widely  erred.  The  official  estimate  was  for  an  outlay  of 
$18,775,919,000  (or  ;f3,755,ooo,ooo),  but  up  to  the  end  of 
February,  that  is  at  the  end  of  the  eight  months  of  the  fiscal 
year,  the  total  expenditure  only  amounted  to  $7,304,851,000  (or 
/i ,461,000,000),  and  it  is  highly  improbable  that  the  remaining 
four  months  will  take  another  $ii,oixj,ooo,ooo ;  indeed,  it  is 
calculated  that  the  total  outlay  for  the  year  ending  June  30  next 
may  not  exceed  $13,000,000,000,  or  $5,775,000,000  less  than  the 
estimate.  This  is  good  news ;  nevertheless,  in  view  of  the 
United  States'  estimate  that  the  war  is  still  going  to  be  a 
long  one,  aU  the  additional  money  and  more  \\'ill  be  wanted 
next  year  for  the  exhaustion  of  the  Allies  here  grows  apace  and 
will  have  to  be  .supplemented  by  the  wealth  of  America  in  order 
that  they  may  be  .able  to  take  an  effective  part  in  the  war  to  its 
triumphant    conclusion. 

I^st  year  the  Norfolk  and  Western  Railway  earned  nett 
$23,182,000,  or  about  $3,000,000  less  than  in  1916,  but  the 
dividend  on  the  common  stock  was  raised  by  %  per  cent,  to 
8  per  cent,  for  the  year.  Three  years  ago  it  was  only  6  per 
cent. 

The  Chicago  and  North-Western  Railway  paid  7  per  cent.. 
as  usual,  on  its  common  stock,  and  had  $5,265,000  left  over 
compared  with  $9,270,000  for  1916. 

The  dividend  on  the  Chicago,  .St.  Paul,  Minneapolis  and 
Omaha  RaUway  was  brought  down  to  5  per  cent,  for  last  year, 
as  against  7  per  cent,  in  previous  years.  This  decrease  corre- 
sponded to  the  reduction  in  nett  revenue,  which  was  only 
$4,299,000  compared  with  $6,186,000  for  1916,  but  that  was 
an    exceptionally   prosperous    year. 

Prosperity  would  .seem  to  have  attended  the  operations  of  the 
Cities  Service  Co.  of  New  York  in  1917.  Its  nett  income  was 
$25,454,000  compared  with  $19,144,000  for  1916,  and  with  only 
$7,516,000  for  1914.  Between  1914  and  1917,  however,  interest 
charges  had  risen  from  $3,069,000  to  $5,977,000,  and  it  now 
takes  $3,944,000  to  pay  the  preferred  dividend  compared  with 
$621, coo  four  years  before.  During  the  year  the  common  stock 
got  6  per  cent,  in  cash  and  6  per  cent,  in  stock  by  way  of 
dividend.  Kt  the  end  of  last  year  the  surplus  belonging  to  this 
stock  had  risen  to  $15,534,000,  and  besides  that  apparently 
$13,899,000  had  been  reinvested,  raising  the  total  amount  of 
profits  thus  dealt  with  to  $28,393,000.  "  Property  values,"  says 
the  report,  "are  thus  being  built  up  out  of  earnings  at  the  rate 
of  over  $1,000,000  a  month."  The  company  now  serves  a  popu- 
lation of  91V000.  and  last  year  (iroduced  11,675,505  barrels  of 
oil. 


\  Renter  telegram  from  Melbourne,  dated  April  ii;  tell.-; 
US  that  war  regulations  have  been  issued  permitting  anyone, 
with  the  consent  of  the  Federal  Treasurer,  to  establish  ani! 
conduct  lotteries  to  raise  money  for   war  loans. 

The  French  Government,  said  the  Chancellor  of  the  Ex- 
chequer, in  replying  to  Mr.  Holt,  raised  ;f  182,320,000  in  1916, 
^^219, 560,000  in  1917,  and  expects  to  raise  in  the  current  year 
;f3i4,76o,ooo.  "  It  must  be  remembered,"  Mr.  Law  went  on. 
"  that  owing  to  the  invasion  of  France  and  to  the  occupation 
by  the  enemy  of  .some  of  the  most  prosperous  parts  of  the 
country,  a  large  part  of  the  normal  revenue  disappeared  in 
lonsequenre  of  the  war!"  The  effort  of  France  is,  in  other 
words,  quite  as  striking  as  anything  that  we  ourselves  or  the 
United  States  have  yet  done. 


LLOYDS  BANK 
LIMITED. 

HEAD  OFFICE :  71,  LOMBARD  STREET,  E.C.  3. 


CAPITAL  SUBSCRIBED       - 

£31,304,200 

CAPITAL  PAID  UP    -       - 

5,008,672 

RESERVE  FUND        -       - 

4,000,000 

DEPOSITS,  &c.   (Dec.,  1917) 

174,697,945 

ADVANCES,  &c.       do. 

61,466,709 

FRENCH    AUXILIARY! 

LLOYDS  BANK  (FRANCE)  AND 
NATIONAL  PROVINCIAL  BANK  (FRANCE)  UMITED. 


388 


tibe  Jnvestocs'  IReview. 


April  20,   1916. 


SCOTTISH  UNION  &  NATIONAL 

INSURANCE  COMHIIY. 

ESTABLIBIIKD    1824. 

«     ASSETS    exceed    £11,000,000. 

FIRE  (INCLUDINC  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  CLASS  BREAKAGE,  TRANSIT  OF 
SECURITIES,  FIDELITY,  PROPERTY  OWNERS'  LIABILITIES,  HORSE  DRIVING 
ACCIDENTS,  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh;  3S,  St.  Andrew  Square. 
London:  S,  Walbrook,  E.C.  4,  and  4,  St  James'  St.,  8.W.  1. 

P^IF  ^^EV  1Vr  ^T     ^^      ASSURANCE    COMPANY 
■k^k  ^    n   JS9i     ^L  •^Ik.  LIMITED. 

Established  1782. 

HMd  Offiea:  PHIENIk  HOUSE,  KING  WILLIAM  STREET,  LONDON,  E.C.  4. 
Total  Assets  Bxoeed  £17,000,000. 
Claims  Paid  Exoeed  £100,000,000. 

Chairman— Rt.  Hon.  LORD  GEORGE  HAMILTON,  P.C,  G. C.S.I 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

Lc«s  of  Profits  following  Fire,  Workmen's  ConipenBation,  Fidelity  Guarantee, 
Burglary,  Trustee  and  Executor,  &c. 
Prospectuses  and  Proposal  Forms  mav  be  obtained  on  application  to  any  of 
the  Branch  Offices  or  Agencies,  or  to  the  Head  Offices 

General  Manager        -        SIR  GERALD  H.  RYAN. 


In  these  days,  when  wide  circulation  of  papers 
through  the  post  is  impossible,  we  rely  on  news- 
paper advertisement  to  remind  our  friends  that  we 
look  to  them  to  do  what  they  can  to  make  the 
merits  of  the  Society  known  in  their  own  circles. 

The  Clerical's  strong  2j  per  cent.  Valuation, 
unbroken  Bonus  record,  and  attractive  rates  of 
premium,  carry  great  weight  with  everyone  who 
is  selecting  an  office  in  which  to  assure  his  life 
in  these  hazardous  times.  —  A.  D.  Besant, 
General  Manager  and  Actuary,  Clerical,  Medical 

and  General  Life  Assurance  Society,    15,   St. 

James's  Square,  S.W.  1,  London. 


Hbe  .investors'  IRepiew. 

Money    and   Credit    Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5J  percent,  on 
Thursday,  April  5,  1917.) 

Norfolk  House,  Friday  Evening. 

Hanking  credit  in  the  open  market  has  become  increasingly 
plentiful  during  the  week,  and  although  seven-day  loans  are 
fro  forma  still  quoted  in  some  places  at  3%  per  cent.,  that  rate 
applies  only  to  "old  "  money,  and  3  per  cent,  or  less  is  the 
quotation  for  new.  Call  money  is  often  2  per  cent.,  and  some- 
times not  placeable  at  that,  thanks  partly  to  the  amount  of  credit 
floating  in  the  market  belonging  to  Scotch  banks.  Discount, 
however,  has  not  followed  the  short  loan  market,  and  the  demand 
for  three  and  four  months'  bank  bills  has  been  on  the  increase. 
hven  for  short-dated  paper  there  is  a  keen  inquiry,  which  tends 
to  put  the  price  against  buyers.  On  the  whole,  however,  we  can 
make  no  change  in  the  rates  quoted,  which  range  from  3j/i  for 
to-day  to  3^-5^  per  cent,  for  six  months'  remitted  bills. 

The  Bank  return  explains  why  money  should  be  so  abundant 
and  cheap.  Compared  with  the  preceding  week,  other  deposits 
have  risen  ;^6,o38,ooo,  and  now  stand  at  ^'u*, 23^,000.  The 
money  thus  poured  out  on  the  market  has  been  provided 
by  increases  of  jf  1,445,000  in  Government,  and  ^^3,881,000  in 
ether  securities,  also  by  an  increase  of  jCS57.ooc  in  the  reserve, 
which  has  been  entirely  provided  by  the  increase  of  ^561,000  in 
the  coin  and  bullion,  the  total  stock  of  which  is  ^^60,997,000,  or 
A5>9.33opo  alx)ve  the  figure  of  12  months  since,  an  increase 
which  should  be  emphasised  because  it  is  comforting  at  the 
present  time  when  the  strain  on  the  market  tends  to  increase. 
Owing  to  the  increase  in  the  liabilities  of  the  Bank  under  de- 
posits tfce  proportion  of  reserve  to  the.se  liabilities  has  receded 
,'4  to  17M  per  cent.,  which  is  2  per  cent,  below  the  figure  of 
13  months  ago. 

A  sensational  fall  in  the  Spanish  exchange,  followed  by  an 
appreciable  recovery,  has  been  the  dominant  incident  in  the 
foreign  exchange  market  this  week.  The  rate  for  sterling  fell 
.mm  17.03!  pesetas  to  15.90  at  one  time,  but  then  recovered 
to  18.05.  The  heavy  fall  was  not  due  to  sales  of  sterling  in 
Spam,  but  to  indiscriminate  buying  of  pesetas  here  by  persons 
■wishing  to  remit  to  Spain.     The  fall  has  been  out  of  propor- 


tion  to  the  actual  amount  of  business  transacted,  and  some 
very  adverse  criticism  has  been  passed  upon  the  thoughtless 
action  of  those  who  are  responsible  for  this  decline.  It  ought 
not  to  be  impossible  to  adjust  the  demand  to  the  supply  through 
the  medium  of  the  Exchange  Committee  without  causing  violent 
movements,  because  these  heavy  falls  do  not  increase  the  supply 
of  pesetas,  but  merely  make  it  more  expensive  for  us  to  pay 
for  our  imports  from  Spain.  Barcelona  is  1.31  pesetas  lower 
at  17.12.  Christiania  at  t^-gji  kr.,  and  Stockholm  at  i3.(;75 
kr.,  are  a  little  in  our  favour,  but  Copenhagen  is  7^  lower 
at  15.174  kr.  The  pound  sterling  will  now  purchase  rather 
less  than  10  Dutch  florins,  and  only  20  Swiss  francs,  though 
the  Swiss  credit  for  Great  Britain,  we  learn,  has  now  been 
definitely  arranged. 

The  development  <fi  New  York  as  an  international  monetary 
centre,  brought  about  by  its  increased  money  power  due  to 
conditions  created  by  the  war,  has  reached  a  stage  of  very 
considerable  interest  to  this  market.  It  is  understood  that 
negotiations  are  proceeding  for  the  estaSlishment  of  a  discount 
house  with  a  capital  of  fio.ooo.ooo.  A  number  of  banking  firms 
are  associated  in  the  enterprise,  including  Messrs.  Morgans 
and  the  Guaranty  Trust  Co.  It  is  intended  to  offer  participation 
to  other  banking  houses.  The  Foreign  Trade  Banking  Corpora- 
tion has  already  been  formed  with  a  capital  of  $2,000,000,  to' 
undertake  the  discount  business.  These  two  organisations  are 
the  first  discount  companies  to  be  formed  in  the  United  States. 
That  they  will  tend  to  attract  business  which  hitherto  has 
come  to  London  is  inevitable,  but  nothing  is  to  be  gained  by 
frowning  upon  it.  It  rather  emphasises  the  advanta/je  of  the 
arrangement  entered  into  between  the  London  Provincial  and 
South-Western  Bank  and  the  Irving  National  Bank,  by  which 
each  will  represent  the  other  in  their  respective  countries.  Last 
year  the  Bank  of  England  and  the  Federal  Reserve  Board  made 
a  similar  arrangement,  and  much  may  be  gained  by  co-operation 
on  these  lines.  The  London  Provincial  and  South-Westem  has 
also  entered  into  a  working  arrangement  with  the  British  Bank 
of  South  America,  which  should  help  to  strengthen  our  financial 
position  in  that  quarter. 

Under  the  scheme  for  the  absorption  of  the  Northern  Crown 
Hank  of  Winnipeg  by  the  Royal  Bank  of  London,  the  Northern 
Crown  shareholders  will  receive  $200  per  $100  share,  partly  in 
cash  and  partly  in  Koyal  Bank  stock.  This  arrangement  will 
involve  the  issue  of  10,883  $100  Royal  Bank  shares,  and  a  cash 
payment  of  $576,970,  the  total  consideration  having  a  cash  value 
of  $2,862,400. 

Baron  Sakatini  is  in  Peking  studying  the  question  of  Chinese 
currency  reform.  He  has  decided  to  recommend  China  to  adopt 
a  gold  standard,  beginning  by  accumulating  a  gold  reserve  in 
the  Consortium  banks.  Proposals  to  borrow  $20,000,000  from 
Japan  for  this  purpose  are  now  under  discussion.  It  seems  rather 
curious  that  this  proposal  should  be  made  at  this  juncture,  since 
China  is  scoring  heavily  just  now  from  the  increased  value  of 
silver  in  terms  of  gold. 

The  Yokohama  Specie  Bank,  Ltd.,  announces  that  ;fi6o.ooo 
4H  per  cent.  Sterling  bonds  of  the  first  series,  and  /220.000  4K 
per  cent.  Sterlins:  bonds  of  the  second  series,  of  1905,  have  been 
purchased  on  behalf  of  the  Imperial  Japanese  Government,  for 
the  purpose  of  cancellation. 

SlLVEH. 

Silver  has  continued  all  the  week  to  rise  in  price,  and  to-day 
advanced  a  further  id.  to  47  Jd.  For  several  days 
it  remained  at  47id-  Per  oz.,  a  price  which  Messrs. 
Mocatta  .state  in  their  circular  does  not  appear  unreason- 
able. They  base  their  opinion  upon  the  fact  that  ^S^A.  per  or. 
in  London  is  equivalent  to  $1  per  cz.  fine  in  New  York.  The 
China  ex'-hange,  the  circular  goes  on,  has  hardly  responded  to 
this  recent  rise,  and  competition  from  that  quarter  is  not  ex- 
pected at  present.  In  India,  Messrs.  Montagu  tell  us,  the 
currency  reserve  in  silver  coin  and  bullion  continues  to  recede, 
and  was  35  lacs  lower  on  April  7  at  1.044  lacs.  Gold  coin  and 
bullion  in  India  has  al.so  gone  down  almost  200  lacs  between  the 
last  return  in  March  and  the  first  in  April.  In  Shanghai  the 
stock  on  the  lUh  inst.  consisted  of  32,250,000  ozs.  in  svcee  and 
$14,700,000.  This  shows  an  increase  of  320.000  ozs.,  but  there 
is  no  change  in  the  stock  of  dollars. 


BANK    OF    ENGLAND 


AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 
Week  ending  on  Wednesday.  April  17,  1918. 


Notes  Issued 


ISSUE     DEPARTMENT 

{ 
..     78,767,790 


Govemmen  t  Debt . . 
Other  Seouritlps    .. 
Gold  Coin  and  Ruttlon 
Silver  Bullion 


I 


^78,762,790 

BANKING   DEPARTMENT. 

£  I 

I4.553,o«'  , 


Proprietors' Capital  

RmI }.073,686 

Pahlle  DeposllBdnolodlng 

Biobeiaer,      Savinf;s 

Banks, Cotnmisaioners 

of  National  Debt,  and 

Dividend  Aooounts)  ..  39,951,682 
Other  Depoailt  ..  ..  138.231,68} 
Seven  Day  and  other  Bllli  13.812 

£195,815,865 
Dated  April  tS,  igtS. 


Government  Securities 
Other  SeouritieB    .. 

Notes 

Gold  and  Silver  Coin 


if 
11,015.100 

r,434.900 

60,312,790 


f78.762.790 
58.JI2.832 

to5  050,822 

30,877.795 
684.416 


fr95,8»5,«>5 
].  G.  NAIRNB,  Chief  Cashier. 


April  20,  1918. 


Zbc  Jnvestors'  1Review» 


389 


BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


L«st  year. 
April  iJ. 

April  10, 
1918. 

April  17, 
igi8. 

Increase. 

Decrease  ■ 

£ 

3,i30,o«^ 

54.76»,32l 

124.538.598 

3'.523 

57,574,695 
•  24,043.796 
33.3»7.500 

Liabllitiss, 
Best 

Pub.  Deposits  .. 
Oiber    do. 
jOayBiMs       .. 

Assets. 
Gov.  Securldes. 
Other        do. 
Total  Reaetve.. 

£ 

3,107,031 

40,077,734 

132,193.895 

11,580 

56,858,332 
102,069,441 
31,005,465 

3,073,636 

39.951.682 

138,231,685 

15.812 

58,312,832 
105,950,822 
31,562,211 

£ 

6.037,790 

4,232 

Decrease. 

6,042,022 

£ 

33,345 
126,053 

Increase. 

1,444500 

3,881,379 

556,746 

6,042,032 

£ 

58,111,715 

55,064.693 

■97  P.O. 

: ., 

NoleClrculatlOQ 
Coin  and  Bullion 
Proportion 
Bank  Rate 

47,880,705 
60,436,170 

18  p.c. 

5      .. 

f. 

47,884,995 

60,997,206 

177  P.O. 

S       .. 

Increase 

£ 

4/290 
556,746 



Decrease. 
•3  p.c. 

LONDON  BANKERS-  CLEARING. 


Date. 

Increase. 

Decrease. 

January 
February 
March 
April 

3 
10 
t7 

1918. 

2,073,224,000 

1,605,654,000 

1,784,836,000 

324,156,000 

401,307,000 

358,580,000 

1917. 

1,865,125,000 

1.779,524,000 

1,492,825,000 

389,347,000 

253,111,003 

396,311,000 

308,099,000 
292,011,000 
148,196,000 

£ 
173,870,000 
65,191,000 

37,73t,coo 

Total 

6,547,757,000 

6.038,769,000 

648,306,000 

276,792,000 

CURRENCY  NOTES. 

Return  of  Currency  Notes  for  the  week  ended  April  17,  191S. 


Issued. 

Cancelled. 

Outstanding. 

£1  notes         

10s.  notes        

Note  certificates 
PreTious  total 

3,357,641 

1,098.871 

610,000 

8''2. 192.022 

3,051,078 
1,307.979 

649,819,383 

£ 

168,507,160 

38,162,935 

26,410,000 

i 

887,258,535 

654,178,440 

233.080,095 

EUtio*f  (oldheld  against  notes,  this  week,  13.79  P-c. ;  last  week,  13.80  p.c. 

PUBLIC   INCOME  AND   EXPENDITURE. 

(For  7  days  ended  April  13.) 


RSVElfUB. 


EXPENOITUSB. 


Customs  

Excise 

Estate,  &c..  Duties  .. 

Stamps 

Land  Tax  and  House  Duty 
Property  and  Income  Tax 
Excess  Profits  Tax  . . 

Land  Values 

Post  Office 

Crown  Lands 

Sundry  Loans . .        • . 

Miscellaneous  .' 

Bullion  advances  repaid  .. 
ForTreasury  Bills  f  orSupply 
3%  Exchequer  Boniis,  1930 
5%  Exchequer  Bonds,  1922. . 
b%  Exchequer  Bonds,  1920. , 
Nation d  ^ar  Bonds  ..* 
War  Savings  Certificates  . , 
4%  War  Loan,  1929-1942  ( 
5%  War  Loan,  1929-1947  •  ' ' 
Other  Dfcbts  created  under 
War  Loan  Act,  1915,  and 
Finance  Act,  1916.. 
Telegraph  Money  Act,  1913 
Under  Post  Office -Rly.  Act, 

19*3 

Cnder  Military  Works  Act, 

1897-1903      

Under  Public  Buildings    ., 

Under  Housing  Act.. 

Repayment  of  Advance  for 
Interest  on  Exchequer 
Bonds  

China  Indemnity 

East  Africa  Loan  repay- 
ments  

Suez  Canal  Drawn  Shares.. 

Ways  and  Means  Advances 

Decrease  in  Exchequer 
balances       


€ 
1,320,000 

482,000 

431,000 

146,000 

50,000 

3,866,000 

3.992,000 

10,000 

500,000 


y  ,000 

70,000 

68,193,000 


16,704,000 
1, 700, coo 


£^101,994,000 


National  Debt  Service 
Inter  st,   &c.,  on  War  Debt 
Development  &  Road  Impvt 
Payments  to  Local  Taxation 
Other    Consolidated    Fund 

Charges        

Supply  Services 
Bullion  Advances     . . 
For   Advai  ce   for    Interest 
on  Exchequer  Bonds  un- 
der  Capital  Expenditure 
(Money)  Act,  1904  .. 
For  Treasury  Bills    . . 
Other  Debt  under  War  Loao 
Acts,  i9<4-i6  . .        ,  y 

For    War     Loan  and     Ex- 
chequer     Bonds      under 
Seciion  61  of  Finance  Act, 
igi6,  and  Seciion  34.  1917 
Under  Telegraph    (Money) 

Act,  10(3 

Under    Post    Office     (Lon- 
don) Railway  Act,  1913  ., 
Under  Militar.'  Works  Acts 
Under  Housing  Act,  1914., 
Public    Buildings  Expendi- 
ture Act,  1903 
Old  Sinking  Fund.  1907-8.. 
Sinking  Fund,  1910-11 
China  Indemnity 
East  African  Loan  . . 
Cunard  Agreement  Act 
Expenditure  Ceitificates   .. 
Depreciation  Fund  .. 
Suez  Canal  Drawn  Shares. . 
Temp.     Advances     Repaid 
Increase       in       Exchequer 
balances       


£ 
2.330,062 
981,139 

90,000 

197,882 
26,264,(00 

150,000 


84,909 
70,720,000 


r. 126,344 


3,600 
r,  000, 000 


1,446,126 


£101,994,000 


'Excluding  sates  through  banks  which  have  not  yet  been  brought  to  account . 

NEW   YORK  ASSOCIATED    BANKS   (dollar  at  4s.). 


April  13,1918 

April  6,  918. 

Mar. 30, 1918 

Aprili4,rgi7 

£ 

£ 

^          1 

Loans       

872,890,000 

861,102,000 

867,370,000  1  734,8x8,000 

Reserve  held  in  own  Vaults . . 

3,478.000 

3,438,000 

3,462,000  ;    99,268,000 

Reserve  held  in  Fed.  Res.  Bk. 

105,174,000 

107,534.00c 

103^88,'  00 

45.592,000 

Cash  in  own  Vaults     .. 

21,085,000 

20,600,000 

20,596,000 

Reserve  held  in  Other  Depos. 

1,670.000 

1,788,000 

1,576,000 

112,268,000 

Nett  Demand  Deposits 

750,858,000 

751,764.000 

748,040,000    748,582,000 

N  ett  Time  Deposits     . , 

36,422,000 

37.094.000 

37,2j8,ooo      38,6161000 

Circulation         

7,(8o,Qoo 

7,168.000 

7,136,000        5,732,000 

Excess  Lawful  Reserve        .  .1 

10,430,000 

12,746,000 

9,200,000      29,852,000 

Lawful  Reserve  consists  of    18%  of    the  Demand  Deposits  and  5%  of    the 
Time  Deposits. 


FEDERAL  RESERVE  BANKS  aJ.S.)  (dollar  at  4s.). 


Gold  coin  and  certificates 
Gold  Settlement  Fund 
Gold  with  foreign  agencies 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

Total  gold  reserves    . , 
Legal  tender  notes,  silver,  &c 

Total  reserves  . . 
Bills  discounted— Members'. , 
Bills  bought  in  open  market 

Total  bills  on  hand     . , 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec.     . 
All  other  earning  assets 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n 
Uncollected  items 
Total  dedctns.  fm  gross  dep 
5%Red.FundagFed.Res.bknts 
All  other  resources 

Total  resources 
Capital  paid  in    .. 

Sur^)liis 

Government  deposits  ., 
Due  tomembrs— Res.  account 
Collection  items 
Otherdepsinc  For. Govt  crdts 
Total  gross  deposits  . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn-nettliab. 
All  other  liab,  in  for  Gov  crdts 

Total  liabilities 

Gold  res.  ag  oett  deposit  liab. 

Gold  res  ag  F.  R.  nts  in  act  circ 

Ratio  of  Bold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       , 

Ratio  of  total  res.  to  nett 
deposit  and  F.R.  note  lia- 
bikties  comb  aed      ..         ..j 


Mar.  22,  1918. 


£ 
94,105,800 
75.973.200 

to.^oo.ooo 


i8o,57<>,ooo 

175,761,000 

4.222.800 


360,^62,800 

II.QII,6O0 


372.474.400 
108,62^,800 
65.7''6,'^0Q 


174.399800 
12,207,800 
45,207,200 

848.00* 


232,662,800 

1 ,760,200 

75,564,200 


Mar.  15,  1918. 


£ 
95,504,200 
74,5Oi,6->0 

10,500.000 


180,503,800 
»73. 925.600 

4.217,2^ 


3:8,648.600 
1 1.790.000 


370.438.600 
103,496,800 
64,640.600 


168,146,400 
13,676,600 
38,796,000 

8o3,ooo 


75.324.400 

107,400 

llO.OCtO 


68j,6?9.of  o 


14,80^,2^x1 
226,800 
18,301,000 
296,005.000 
45.823,000 
16,350.200 


376,479.200 

285,901,800 

1.595.600 

1,673,400 


6Bo.67C),oon 


59-6% 
630% 


61.4% 


63.4% 


221,427,000 
2,321,800 
7i,4?9.400 


73.751.aco 
107,400 
290. -ino 


666  014,6(0 


14,777.200 

226,PO0 

i4,4C4,6oo 

2  "9.599,400 
46,441,400 
I  ft, 20,600 


366,655.0-0 

281,245,600 
1,600,000 
1,510,000 


666,014  600 


6.. 6% 
63-3% 

fc.5% 

64-5% 


Uar.  s),  19x7. 


70^M7.MO 
41,856,200 


112,003,400 
69,903,800 


182,411,000 

2,H3.0Q0 


tH4.544.OOO 
3.694.600 
'7  SS9.601 


21,254,200 
3.835.000 
3,763.600 
3.l?4,«)o 


34,047,coo 

65  9, (km 

29.151,400 


29, S,  1,000 

8o,oon 

1,114,000 


249.596000 


11,211,400 

3,940,400 
142,233,400 
23,756,800 


168,920,600 
69,360,800 

103,200 


249.^96.000 


80.5^ 
101.5'?! 


87.5% 


88.5% 


NEW  YOUK  STATE  BANKS  &  TRUST  COMPANIES   (dollar  at  4s.) 

April  13,  1918. 

April  6,  1918. 

Mar.30,  I91S. 

April  14,  igtr. 

Loans  

Specie 
Deposits 
Legal  Tenders 

155,304,000 

3,044  000 

142,370.000 

Il,340.noo 

( 
150.082,000 
3,014,000 

142,0  !2,000 
i3.6ro.ono 

£ 

150,482,000 

2.928,000 

141,25*1,000 

13, 4^.8,000 

151,872,000 

13,804.000 

170,684.000 

2  354.000 

BANK   OF   PRANCE   i25  Irancs  to  the  £). 

Mar.  23,  1918 


April  II,  1918. 

April  4,  1918. 

Gold  In  hand 

f 
135,568.080 

133,516,680 

Silver  In  hand 

10,205,320 

1,1,198,640 

Bills  discounted 

63.330,640 

72,667,640 

Advances 

45.i«2,920 

44.557,440 

Note  oiroulation 

1,043,471,360 

I,033,9'5,36o 

Public  deposits 

2,287,361 

3,356,480 

Private  deposits 

131,871,200 

lI5,o>3,76o 

Poreien  Billq.. 

462.010 

485.040 

133,457,480 

10.217,000 

53.i28,7!0 

44.114,280 

1,007,173,120 

i,89i,roo 

112,342,280 

371,320 


April  12,  I9I7.- 

£  : 

130,987,000  ; 

10.384,340  . 

ig. 722. 720 

47.2  79.960  , 

753,765,080  • 

3,641,920  ; 

ioo,4l4.84i)  .' 

98,880 


Proportion  between  bullion  and  circulation  21.51  per  cent.,  against  21.78  pet' 
cent,  last  week.  Advances  to  the  State  £604,000,000,  increase  £12,000,000.  The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratoriuin.  £19,316,120, 
decrease  £30,960,  and  at  the  branches  £24,716,830,  decreasfl  £71,320. 

IMPbKlAL  BANK  Uh  UEKMANY  (20  marks  (0  the  £).  ': 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances 
Note  circulatioo 
Deposits 


April  6,  1918.  Ma-.  30,  1918.  Mar.  23,  1918.  April  7,  1917. 


£ 
126,375.750 
76,077,950 
710.137,950 
299,150 
595,852.300 
379.745,150 


126,343,800 
76,937,950 
801,712,950 
323,100 
598,890,350 
451.478,450 


126,305,500 
66,957,150 
673,455.150 
259,050 
569,960,550 
356,455,310 


127,402,750 
17,571,800 
497,080,350 
411.25a 
457,943,300 
240.996.450 


Clearing  House   return    during   March    £459,815,355,    against    £4to,879,905 
in  Fttbruary. 

BANK    OP    SPAIN  (25  pesetas  to  the  £). 


April  6, 191S  Mar.  30,1918  Mar.23, 1918  April  7, 1917 


Gold        

Silver       

Fo  eun  Bills    .. 
Discounts  and  Sliort  Bills 
Treasury  Account,  &c. 
Notes  In  Circulation  .. 
Current   Aooounts,   Deposits 
Dividends,  Interests,  Sto, 
Government  Securities 


£ 

80,570,477 

28,127,816 

3,582,025 

157,643,132 

24,963,401 

116,024,147 

34,823,592 

2,241,986 

4,283,847 


J. 


£ 
81,291,950 
28,341,013 

3,5"4,729 
30.352,127 
35.080,765 
114.123,403 
33.864,460 
1,595.533 
6,083,213 


79,948.941 

28,241  379 

3.562,844 

30.420.521 

25,014,821 

114.017,169 

33,766,316 

1,495,893 

5,858,916 


-    £ 
54.776,237 
29.879.570 

3,468.580 
43.163,676 
25,403,099 
95,941,823 
28,1.99,141 

2  093,105 
19,691.610 


BANK 

OF    SWEDEN  (18  kroner  to  the  £) 

. 

Mar.  30,  1918. 

Mar.  12,  1918. 

Mar.  16, 1918. 

Mar.  }i,  1917, 

£ 

£ 

£ 

£ 

Gold 

14,337,000 

13.599,000 

13,049,000 

10,731,000 

Balance   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

7,306,000 

7,287,000 

7,193,000 

8,o92,->oo 

Govt.  Securities  .. 

3,920,000 

3,937,000 

3,959,000 

Discounts  and  Loans 

15,844.000 

14.755,000 

14,705,000 

9,689,000 

Notes  in  circulation 

35,037000 

32,173,000 

32,756,000 

2I,J79.O0O 

Deposits  at  notice  .. 

7,062,000 

8,138,000 

6,971,000 

7,436,000 

NETBEKLAWDS  BANK  (12  Fiorina  to  the  jE). 


Gold  and  Silver 
Bills  and  Advances 
Note  circulatioD 
Deposits. . 


Apr. 13,  1918 


£ 

61,440,606 

•4,'8l.3H 
74,761.000 
6,124,083 


April6,igt8. 


£ 
60,711.583 
9.651,583 

74.656, 2<0 
5. '95.333 


Mar.  30,igi3 


60,789,000 

13,064,16s 

74,406,750 

4.730,333 


April  14,1917 

49.7l«,ooo 
15.451,833 

63. 22t^4l6 
6.406,000 


390 


'^be  Jnveetors'  IReview. 


April  20,   1918. 


SWISS  NATIONAL  BANK  (25  franc*  to  th*  £). 


Oeld  and  slWar 

Bill!      .. 

Noto  olroiilatlon 
Current  and  deposit 
■oooimts 


April  6,  1918. 


£ 

17.141.49!! 

I2.635,99J 
»7.349.676 


Mar.  30, 1918.  Mar.  23, 1918. 


?  i  '  '     £ 

17,054,668  I  17,062,928 

12,296,23a  !  9,266,828 

27,825,172  I  25,856,875 


4.375.824 


4.149.532 


April  7, 1917. 

7~ 

15,729.052 

7,421.248 

20,832,771 

3,678,668 


BANK 

OF  NORWAY  (18  kroner  to  the  £). 

Mar.  30, 1918. 

Mar.  12,  1918. 

Mar.  J5,  Z918 

Mar.  31,  1917 

Gold    , 

BalaDoe  abroad  and 

Foreign  Bills 
Govcr'ni  Securities. . 
Discounts  &  Loans. 
Notes  io  CironlalioD 
Daposlts  at  notice.. 

6,739,000 

3,340,000 

713.000 

18,473,000 

19,255,000 

6,834,000 

6,741,000 

3,619,000 

713,000 

18,792,000 

168,307,000 

7,880,000 

6,521,000 

3.247,000 

713.000 

19.672,000 

18,270,000 

8.867.000 

£ 

7,227.000 

4,228,100 

;o6,ooo 

11,130,000 

i5,4''8,ooo 

5,697,000 

LONDON  COURSE  OP  EXCHANGE. 


Plaee. 

Usance. 

April  16,  1918. 

April  t8,  1918. 

Sellers. 

Buyers 

Sellers. 

Buyers. 

Amsterdam  . ,     . . 
Paris      

Swltterland..    .. 

Genoa,  Ac 

Spain     

Lisbon  and  Oporto 
Copenhagen..     .. 
Ciiristiania  . .     . . 
Stockholm   ..     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills. .     . . 

Cable  transfers 

Three  months' bills.,     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills  . .     . . 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

9-97 
2715 
27-55 
20.0'i 
ao.43 
4230 
16.00 

% 

15-22 
1500 
14-00 

10.02 
27.20 
27.60 
20. 18 

20.53 
42.40 
16.15 

15-32 
15.10 
14.10 

9-97 
27.14 
27-55 
20.03 
20-38 
42-30 
18.00 
61} 
28i 
15-20 
15-05 
14-03 

10.02 

27-19 
27-60 
20-13 
20.48 

4240 

18.2D 
623 

29i 

15-30 
15-15 
14  13 

FOREIGN    RATES    OF    EXCHANKE    ON    LONDON. 


Method  of 

of 

Last 

This 

Quoting. 

Par 
Eicb 

Week. 

Week. 

Paris,  cheques 

Francs  to  £^1 

25-22J 

27.16 

27.164 

Amsterdam,  cheques 

Florins  to  £  I 

12-107 

10. c8 

10-01 

Italy,  sight 

Lire  to  £1  . . 

25.22i 

42-<l 

42-52 

Madrid,  sight 

Pesetas  to  f  I 

25224 

17-47J 

17.60 

Lisbon,  sight 

Pence  to  milrels  . . 

53}d. 

29jci. 

29d- 

Switzerland,  sight    .. 

Francs  to  /"  1 

25  22 J 

20.  I2i 

20- 1 2* 

Christiania,  siyht      .. 

Kroner  to  fi 

18.159 

I5.01J 

15-06 

Stockholm,  sight 

Kroner  to  ^"1 

18.159 

I4-I2I 

14-05 

Copenhagen,  sight    . . 

Kroner  to  £1 

18.159 

>5-32j 

15-24 

Petrograd,  sight 

Roubles  to  jfio     .. 

94-57 

noin- 

nora. 

Alexandria,  sight 

Piastres  to  jf  I 

97i 

97* 

97J 

Bombay,  T.T. 

Sterling  to  rupee.. 

1/4 

1 

Calcutta,  T.T 

Sterling  to  rupee.. 
Sterling  to  dfJlar., 

1/4 

I/5S? 

Hong  Kong,  T.T.     ., 

3/oi 

3/li 

Shanghai,  T.T 

Sterling  to  tael     .. 

— 

4/3! 

4/5I 

Singapore,  T.T 

Sterling  to  dollar, . 

— 

2/3iS 

2/3M 

Yokohama,  T.T 

Sterling  to  yen     . . 
Dollars  to  :f  I 

24.58d. 

2/1 1« 

2/2A 

New  York,  cable      .. 

4.868 

4--6| 
5o3d 

4-76^ 

Buenos  Aires,  T.T 

Pence  to  dollar    ,. 

47-58d- 

5'ld 

Valparaiso,  90  days.. 

Pence  to  peso 

■sHd 

Montevideo,  T.T 

Pence  to  dollar     . 

5ld. 

64id. 

64W. 

Rio  de  Janeiro,  90  days 

Pence  to  milreis  . . 

I6d. 

■i&d- 

iSftd. 

OPEN  MAKK&T  OlSCOUM. 


Tliirty  and  sixty  day  remitted 
Three  months  ,, 

Four  months  1, 

Six  months  , 

Three  months  fine  iaiand  bills 
Four  months 
Six  months 


Last  week.  This  week 
Percent.     Per  cent. 


BANK  AND  DEPOSIT  RATES. 


Bank  of  England  minimum  disoouot  rate 
II  ,t         short  loan  rates  . . 

Baokers' rate  on  deposits 

Bill  kwokers'  deposit  rate  (call) 

,1  7  and  14  days'  notice  .. 

Curreat  rates  for  7  day  loans 
,,  for  call  loans 


53 

..    3i-2 

..         3* 

.    sl-i 

-.      3J-: 

.      3ft-8 

..     34- 

4-| 

..            4  — 

•      ■<  ^ 

;:  J|l 

.       4  -\ 

Last  week  This  week 

Per  cent. 

Per  cent. 

5 

5 

3 

3 

''■  'h 

ih 

..     2i_3 

The  Week's    Stock    Markets. 

It  has  been  a  trying  week  from  various  points  of  view,  what 
with  uncertainties  about  the  political  situation  at  home  and 
anxieties  with  regard  to  the  military  developments  on  the 
Western  front.  If  we  ever  become  momentarily  depressed  it 
is  always  much  more  in  connection  with  the  former  than  the 
latter,  where  the  real  work  of  slaying  the  brutish  Hun  goes 
on  mercilessly,  even  when  certain  yards  and  miles  of  front 
have  to  be  conceded  to  his  wild-boar  rushes.  But  the  atmo- 
sphere is  not  exactly  favourable  to  business,  either  of  a  specu- 
lative or  investment  kind,  and  it  is  not  surprising  that  the 
tone  in  nearly  all  sections  of  the  market  has  been  somewhat 
depressed.  We  have  been  passing  through  a  very  difficult 
time,  and  the  end  of  it  is  not  in  sight,  but  as  the  darkest 
hour  generally  precedes  the  dawn,  we  may  have  good  hope 
that  the  prospect  will  soon  become  much  brighter.  For  the 
present,  we  can  only  exercise  patience  and  let  prices  take 
care  of  themselves  until  the  immediate  danger  is  past.  Keep 
cool  and  keep  cheerful— we  shall  win  through  in  spite  of  our 
domestic  worries.  AnA  it  is  of  good  augury  that  gilt-edged 
securities  have  been  the  best  market  of  all  in  these  distressing 
days.  ■ 


Kverything  in  the  Stpck  Exchange  has  been  on  a  rather  subdued 
basis  this  week,  but  towards  the  end  there  was  an  inclination 
to  take  a  more  cheerful  view  of  the  outlook  owing  -to  the  im 
proveraent  in  the  military  situation.  Dealings  have  been  on 
an    extremely    small    scale,    even   the    week-end    accumulation 


I  Last  I  TUt 
IWeek  Week 


Consola 

War  Loan   }>' 

,•         44' 


1929-47. 
,  1919-42. 


India  3% 

„     3ji% 

Australian  5}%,  1020-: 
Canada  4%,  1940-60  . 

„       44%,  1920-5  . 

BelKian  3% 

Brazil,  1913 

„      5%,i9'4   ... 

Chinese  1896  

>■       19'2 

Eeypt  Unified  4%... 
Frencli  War  Loan, 
Caledonian  defd. 

Gt.  Cetittai  ptG 

,,        „        dfd 

Gt.  Eastern 

Gt.  Northern  dfd........ 

Gt.  Western    

Lanes,  and  Vorlis 

London  Brighton  defd. 
London  Chatham  ord. . . 
Canadian  Pacific 


5% 


E.  Indian  Guar.  4!  %  debs. 
Grand  Trunk  ord.    . 

Do.  1st  pf. 

Do.  3rd  pf. 

Antofagasta  dfd 

B.  A.  &  Pacific 

B.  A.  Gt.  Southern  

B.  A.  Western    

Cent.  Argentine  ord 

Anglo-South  American    ., 

Bank  of  Australasia 

Bankof  N.S.  Wales 

Barclay  &  Co.  "  A  " 

Do.       "B" 

Capital  &  Counties  

Chartered  of  India    

Hongkong  &  Shanghai    .. 

Lloyds  

Armstrong,  Wbitwortb  .. 
Birmingham  Small  Arms 

Cammell-Latrd 

Cargo  Fleet 

Dorman,  Long   

Associated  Cement 

Borax  dfd 1.. 

Bovrii    

Brazil  Traction  

British  A mer.  Tobacco  pf. 

British  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Keliner . . .- 

Coats 

Courtaulds 

Cunard 

Dennis  Bros 

Eastern  Telegraph   

t£astmans 

English  Sewing  Cotton  .. 
Anglo-Egyptian  "  B"  .... 

Baku  (los.) 

Burmah 

Lobitos 

Maikop  Pipeline   

Mexican  Eagle  pf 

Allagar2/- 

Angio-J  ava  Rub.  2/-     .... 

Anglo-Malay  2/ 

Ayer  Kuning  ^i 

Bekoh  2/- 

Brit.  N.  Borneo  Trust  f  i 

BukitCloh2/- 

Bukit  Mertajam  2/-  

Bukit  Sembawang  2/-  ... 

Carey  United  jfi  

Chersonese 

Chevi.^t2/-  ., 

Dalkeith  2/- , 

Grand  Central  £1 

Highlands  £1 

Java  Investment  £1 

Johore  Rubber  Lands  £1. 

Kamunin  '  2/- 

Kinta  Kellas2/-  

Labu  2/- 


lOI 

100} 

Ilk 

99 

80 

95 

621 

67; 

821 

87' 

75 

87 

76 

"If 

34 

63J 

531 

8 
158 
84 

88 

5°, 
l8i 

140J 
40J 
70 
684 
59 
Six 

116 
36 

u 

25J 

7341 

82 

«4! 

43/ 
62/6 

26/ 
36/6 

3S 
35r 

2)/9 

42 

17/9 

31/ 

31/! 


ssA 

86 
101 

ioo| 

994 
80 

67 
83 

88 
75 
87 
75J 

.3 


Langen  Java  £1 

Linggi2/- 

London  Asiatic  2/- 

Malayalain  £1 

Merliinau  2/-   

Bechuanaland  Exp.    

Brakpan  

Broken  Hill  Prop.  (8/-)   . 

Cam  &  Motor 

Central  Mining  (£12)  ... 

Chartered    

City  Deep      

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (10/-)  ..... 
De  Beers  did.  (£2  10^.) 

East  Rand   

Geduld 

Gov,  Areas  Mod     


WeektWeak 


N.S.W.  5%  1921-3   

.,      5i%.  i9«o-» 

New  Zealand  a%,  1929  . . 
Queensland  44%,  1920-5 . . 
Union  of  S.  Africa  44%, 

1920-5     

Victoria  44%.  1920-5 

Westn.  Aus.  4%    


Japan  44%  (i«t),  1905 

5%- '9*7 

Mexican  5%,  1899   .. 
Russia  4  % 

„      4i%,  I909-.-. 

„      5%.  >9o6 


4^ 
36/6 
I53j 

9/ 

55/6 

33/ 

1/6 

66 
I« 

2/ 
6^3 
3/'i 
6/3 
3'104 
45/ 
4/4J 
16/0 
4/loJ 
4/44 
3/li 
4'/ 
3/14 
5/7i 
2/84 
:6/6 
57,6 
26/ 
31/9 

3/8 

3/114 

8/74 

37/6 

25/104 

8/9 
36.'9 

5/ 

7/ 

48 
67/6 
lif 

I4/t4 
2j 
30/ 
16/6 


53J 
8 

158 

84 
8J 

50 

184 
142 

41 

6&4 

68 

584 

8}I 

•'7 

36 

7i 

12 

254 

734': 

82 

24i 
42/ 
596 
68 
26/ 

34/ 
.  3A 
35/ 
21/ 

17/6 

31/ 

30/ 

m 

3» 

'el 

4 
35/6 

"534 

9/ 
53/ 
33/6 
1/6 

6S 

it 

2/ 
61/3 

3/14 
6/ 

13/9 

44  6 

4/44 

:6,9 

4/1' 4 
4/3 
3/14 
39/6  j 
3/'4 
5/6     I 

2/74  II 
26/ 

57/    1' 
25/74 
30/ 
3/8 
3/9 
8/7J 
37,6 
25/ 
8/6 
36/6  i 
4/10/ 1 
6/3 

i 

10,6 

13/7J 

3OJ 


London  and  N.-W.     .. 
London  and  S.-W.  dfd. 

Metropolitan 

Met.  District 

Midland  dfd 

Nth.  British  dfd 

Nth. -Eastern  

Stb.-Eastern  dfd 


Chesapeake. 
Erie 

Southern  ... 


Leopoldina 

Mexican  ord 

San   Paulo  (Brazilian). 
United  of  Havana 


London  &  Brazilian.... 
London  City  &  Midland 
London  County  &  Westt. 
London  Joint  Stock.... 
Nat.  Prov.  otEng.(£io4  pdi 
Do.  (jCx2  pdj 

Standard  of  S. A 

Union  Discount 


Kynochs   

Mond  Nickel  ord 

South  Durham  Steel  ... 

Thornycroft    

Vickers h 

Fine  Cotton  Spinners  . , . 

ForestalLand 

Furness,  Withy 

Harrods  Stores 

Hudson's  Bay    

Imperial  Tobacco  '  C '  pf 
Lever  Bros.  "  C  "  pf .  . . . 

Lyons,  J ;••• 

Marconi    

Mavpote  Dairy  dfd 

National  Steam  Car 

Pears.  A.  &F 

P.  &0.  dfd 

Royal  Mail  .i 

Underground  Inc.  Bds.  . 


North  Caucasian  . 
Roumanian  Cons.. 

Shell 

Spies  (10/-) 

Ural  Caspian 


I 


4/9 


Perak  2/-   

Port  Dickson  s/-   

Rub.  Estates  Krian  2/-. 

Rubber  Trust  £1 

Sampang  (Java)  2/- 

Sapumalkande  £1     ... 

Seaport  £1 

Sengat  2/- 

Seremban  ;Ci 

Sialang  £1 

Singapore  Para  2/-    ... 
Singapore  United  2/-    . 

Pataling  2/- 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  ]f  I   

Taiping  2/-  

Tandjong  £1    

Tandjong  Malim  £1.,. 

Tebrau  £1  

Telogoredjo  £1 

Tempeh2/- 

United  Serdang  a/-  ... 

Vald'Or  2/- 

Vallatnbrosa  2/- 

Gt.  Boulder  (2/4    

Kyshtim    

Mashonaland  Agency  . 
Meyer  &  Charlton    ... 

Modder  "  B" 

Do.    Deep 

Mysore 

R^nd  Mines  (5/-)    

Rio  Tinto(jf5)   

Ru«so-Asi  itic 

Spring  Mines 

Tang^inyika 

Tanalyk    

Van  Ryn  Deep   


18 


64 


•3^ 


which  had  to  be  handled  on  Monday  only  producing  a  recorJ 
of   2,600  bargains,  and  since  then  the  record  has  become  still 
more  attenuated.     All  things  considered,  it  is  satisfactory  thr' 
gilt-edged  securities,  particularly,   have  been  exceedingly  we' 
maintained,  and  Consols,  War  Loans,   and   Indian  issues  havt 


April  20,  1918. 


Ubc  Jnvestors'  IRevtew. 


39« 


all  appreciated.  Almost  the  only  weak  spot  was  Hank  of 
England  stock,  which  on  one  or  two  small  transactions  gave 
way  a  couple  of  points.  Colonial  Loans  were  fairly  firm,  but 
latterly  became  almost  comp.letely  neglected.  In  the  Foreign 
market  the  most  prominent  activity  occurred  in  Spanish  Fours, 
which  at  one  time  rose  as  high  as  133  owing  to  the  artificial 
position  of  the  exchange.  Later,  when  it  was  reported  that 
arrangements  had  been  made  to  deal  with  the  fictitious  position 
which  at  present  exi.sts,  the  price  rapidly  slipped  back  to 
about  118,  or  even  less.  Russian  bonds  have  been  again  on 
offer,  and  have  receded  several  points,  but  Chinese  and  Japan- 
ese showed  strength,  and  Brazilian  bonds  al.so  received  some 
support.     Peruvian  Corporafions  were  noticeably  dull. 

Home  Railways  were  scarcely  mentioned  for  several  days, 
and  when  any  interest  was  displayed  in  them  it  was  in  the 
direction  of  selling,  which  brought  the  prices  down  nlore  or 
less  substantial  fractions.  American  Railroads  were  quite 
neglected,  except  that  International  Mercantile  Marine  lost 
a  point.  Canadian  Pacifies  advanced  a  point  or  two,  but 
closed  well  below  the  best,  and  Grand  Trunks,  after  showing 
a  certain  amount  of  strength,  weakened  on  the  report,  and  the 
guaranteed  and  preference  issues  were  quoted  lower.  Mexican 
Hails  also  were  dull,  and  Argentines,  after  being  depressed 
by  reports  of  renewed  labour  troubles,  finished  a  little  better. 
San  Paulos  lost  a  point. 

Bank  shares,  generally,  were  weak,  and  Westminsters, 
National  of  India,  Joint  Stock,  and  several  others  gave  way 
a  little,  but  Barclays  and  Bank  of  Australasia  both  improved 
to  some  extent.  Brewery  shares  did  not  attract  much  attention, 
and  the  only  conspicuous  movement  was  in  Watney  deferred, 
which  fell  back  rather  sharply.  Egyptian  securities  were  weak 
on  profit  taking,  and  Land  shares  also  moved  backwards  where 
any  change  occurred. 

Iron  and  steel  shares  also  were  depressed  as  a  rule,  and  the 
Explosive  division  gave  way  to  a  small  extent.  Otis  Steel,  after 
advancing  aj,  dropped  back  4  points.  Nitrate  shares  were 
weak,  but  steadied  towards  the  close.  In  the  Shipping  divi- 
sion, P.  and  O.,  Royal  Mail,  and  Furness,  Withy  all  receded, 
and  among  Telegraphs,  Marconis  were  decidedly  flat.  In  the 
Textile  group,  Courtaulds  fell  hack  to  under  6^.  and  Coats, 
Bradford  Dyers,  and  English  Sewing  Cotton  all  lost  more 
or  less  heavily.  Miscellaneous  Industrials  were  dull  and  gener- 
ally neglected,  all  the  movements  of  any  importance  being  in 
the  wrong  direction. 

Oil  shares  have  been  dull  throughout,  with  Burmahs,  Mexi- 
can Eagles,  "  Shells,"  Trinidad  Leaseholds,  and  other  shares 
in  which  there  is  anything  approaching  a  free  market, 
all  lower.  Rubber  shares  have  been  quiet,  and  the  delay  in 
the  issue  of  the  annual  reports,  which  are  now  due,  owing 
to  the  difficulty  in  getting  accounts  from  the  East,  has  helped 
to  keep  away  both  buyers  and  seller's  from  the  market,  every- 
body waiting  to  see  what  the  results  for  the  past  year  actually 
come  out  at.  In  several  cases  dividends  have  had  to  be  re- 
duced, and  with  the  restriction  of  output  to  be  faced  in  the 
current  year,  at  tlie  same  time  as  expenses  are  likely  to  be 
higher,  the  bulls  have  not  much  ground  for  enthusiasm.  At 
the  same  time,  the  tone  has  been  much  steadier  than  might 
have  been  expected  in  the  circumstances. 


LONDON    PRODUCE   MARKETS. 

SoGAR  remained  without  change  during  the  week. 

Coffee. — A  quiet  tone  was  again  apparent  in  this  market,  but, 
with  no  pressure  on  the  part  of  sellers,  prices  ruled  about  un- 
altered. The  terminal  market  keeps  quite  inactive  and  nominal. 
At  public  sales,  bold  Nyassaland  sold,  iios.  to  112s  6d. 

Spice. — A  quiet  and  easier  state  of  affairs  pervaded  the  pepper 
market.  Fair  black  Singapore,  on  spot,  sellers,  is.  4d.  ;  Telli- 
cherry,  is.  4|d.  ;  Aleppy,  is.  4jd.  value;  Muntok.  sellers.  2S.  2^d. 
Cloves  dull.  Fair  Zanzibar,  ^pot,  sold,  2S  4d.  Pimento  quoted, 
5jd.  Tapioca  dull  of  sale.  Fair  flake,  spot,  value,  7|d.  ;  fair 
Penang  seed  pearl,  78s.;  medium,  72s.  6d. ;  and  fair  small  sago, 
80s.  Nutmegs  firmer  in  auction,  and  good  sound  realised  up  to 
3s.  4d.  per  lb. 

Rice. -Moderate  sales  at  fixed  rates,  also  with  regard  to  beans 
and  peas. 

Shellac— Market  very  quiet,  and  fair  free  T.N.  quoted  410s. 

Rubber  met  with  moderate  support,  but,  after  being  firmer,  a 
weaker  tone  prevailed.  Crepe,  spot,  sold,  2S.  4jd.  to  2s.  4|d.  and 
23.  4jd.  ;  May-June,  2s.  sjd.  to  2s  sd.  ;  July-December,  23.  6Jd. 
'o  2S.  6Jd.  and  2s.  6|d.  Standard  ribbed  smoked  sheet  spot,  sold, 
2s.  3jd.  to  2s.  3|d.  and  2s.  3jd.  Fine  hard  Para,  spot,  buyers, 
3s.  id.  ;  soft  fine,  2s.  gd.  ;  ball,  is.  8Jd. 

Corn  (Mark  Lane). — The  first  two  grades  of  Manitoba  wheat 
were  again  offered,  and  sold  readily  at  8is.  6d.  and  80s.  respec- 
tively, flour  being  well  patronised  at  a  full  range,  but  in  other 
respects  a  subdued  aspect  prevailed,  although  a  distinctly  good  tone 
was  maintained  throughout.  Hard  winters  quoted  at  80s.  and 
Australian  83s.  6d.  Flour-  Canadian  export  patents,  51s.  gd.  ; 
English.  44s.  3d.  per  sack  ex  mill.  Barley,  English.  62s.  gd.  per 
qr.  Oats:  American  white  clipped  No.  2,  6is.  ;  Canadian  feed 
No.  I.  63s.  ;  English,  47s.  3d.  Maize  meal  (white)  and  yellow 
maize  flour  held  for  6is. 

Cotton  (from  our  Manchester  correspondent). — The  slump  in 
raw  cotton  rates  and  the  violent  fluctuations  in  prices  which 
have  followed  have  been  a  shock  to  the  market,  and  business 
has  been  thoroughly  demoralised.  Numerous  producers  have 
refused  to  sell,  and  the  majority  of  buyers  have  adopted  a  wait- 
ing policy.  The  tone  of  the  market  has  been  very  nervous.  The 
outlook    for   supplies   of   American    cotton    has    distinctly    im- 


proved, and  there  is  a  probability  of  an  increased  acreage  for 
next  season.  Numerous  speculators  have  liquidated  their  hold- 
ings, and  gambling  in  certain  quarte,s  has  been  rampant. 
Nothing  particularly  new  has  come  through  relating  to  the 
Egyptian  crop.  Operatiorus  in  piece  goods  have  been  practically 
at  a  standstill.  Shippers  have  withdrawn  offers,  and  makers 
have  been  indifferent  as  to  booking  .fresh  contracts.  Reports 
are  now  being  received  of  rather  better  clearances  in  cloth 
in  India,  but  sized  shirtings  remain  very  dull.  There  has 
been  no  activity  whatever  for  China,  and  the  position  of 
affairs  in  Shanghai  leaves  much  to  be  desired.  Exporters  to 
the  minor  outlets  East  and  West  have  been  very  cautious.  All 
kinds  of  fabrics  have  moved  off  slowly,  and  the  sale."!  have  not 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK  ENDING    APRIL  19,  1918. 


Ust 

This 

Last 

This 

Week. 

Week. 

Week. 

Week. 

Ia<ar— pel   cwt., 

£    s.  d. 

£  s.    d. 

Wool— per  lb. 

£    ..  d. 

£  ..  d. 

duly    14/,    98% 

A  u  s  t  r  a  1 1  a  n 

polarisation 

Scoured  Merioo 

nom. 

nom. 

Tate's  Cubes 

»  J3    9 

a  13    9 

Scoured  Cr'ssbr'd 

nom. 

nom. 

Crushed 

2  13    9 

2  13    9 

Greasy  Merino   . . 

nom. 

Dom. 

Granulated  ..     .. 

269 

269 

Greasy  Crossbred 

nom. 

nom. 

Lyle's  granulated 

369 

369 

New    Zea lan^ 

Fcreign        granu- 
lated,  first  markf 

(scoured)  Merino 

nom. 

nom 

Greasy  Crossbred 

nom. 

oom. 

f.o.b.,  spot 

nom. 

nom. 

Cape  snow  white 

nom. 

nom. 

GermanCubef.o.b. 

nom. 

nom. 

French  Cube 

ladlarnbbarp.lb 

prompt 

nom. 

oom. 

Planution,     Spot 

Crystallised,  West 
India 

269 

269 

Crepe 

024} 

0   a   *  . 

Beet,    88%    f.o.h 

00m. 

nom. 

Goal- per  ton 

Durham,  best     .. 

nom. 

nod.  ' 

I«-^er.b..dut, 

Indian  Pekoe      .. 
Broken    ,, 
Orange    „ 

s.  d.  s  d 

nom. 
nom. 
nom. 

s.d.  a.  d. 

nom. 
nom. 
nom. 

Seconds        ..     .. 
East  Hartlepool.. 
Seconds       ..     .- 
Steams,  beat 
Seconds       ..     .. 

nom. 
nom. 
nom. 

326 

29  6 

nom. 
nom. 
nom. 
«    « 
29    6 

Broken    ,, 

nom. 

nom. 

Pekoe    S^uchon^ 

nom. 

nom. 

Lead— per  ton. 

£    «.  d 

£     *.i. 

Ceylon  Pekoe     .. 

nom. 

nom. 

English  Pig..     .. 

nom. 

nom. 

Broken    ,, 

itom. 

nom. 

Foreign  solt,  net 

rs9i-£»8J 

£294-jfa8i 

Orange    „ 
Broken    „ 
Pekoe  Souohong 

nom. 
nom. 
nom. 

nom. 
nom. 
nom. 

Qulok»tl»«r— ptr 

bottle  firsthand 

nom. 

nom. 

Ooeoa  —  per  owl. 

s.  d.  «   d. 

d.  s.  d. 

Tin — per  ton 

duty  6d.  per  lb 
Trinidad — perowi 

up  to  90  c 

up  to  90  0 

English  Ingots      , 
Do.    bars 

^325-^330 

iC337 
JS38 

Grenada       , .     . 

.,   „   85  c 

„  „  85  0 

Standard  cash    . . 

£322 

£330 

West  Africa..     . 

„  „  65 . 

,,   ,,  65  0 

TinPlates,perba> 

nom. 

nom. 

Ceylon  Plantailoi 

,,     ,,  100   0 

,,   ,,  10:)  0 

Copper— per  ton. 
English,     Tough 

Guavaqiiil     . .     . 

„  ,.  90  I 

>»   t>  90  0 

Oair«« — per    cwi 

per  ton      . .     . 

nom. 

nom. 

duty  43/- per  cwt. 
Itast  India    ..     . 

iioo  J35C 

[08-0  133-0 

Best  Selected     . 
Sheets 

Cll9-tl23 

iC'49 
£iio-iio! 

£lI9-lfl23: 

£iio-ii(4 

lamaica 

Costa  Rloa   ..     . 

770151: 
100  I370 

77-0  150-0 
log-o  i35-o 

Standard      . .     . 
Jute— per   ton. 

Provisions— 

Native   firsts    tot 

Butter,  per  cwt 

shipment 

nom. 

nom. 

Australian  finest 

252/ 

252; 

Argentine     . . 

252/ 

252/ 

Oils- 

(ri^ili  Crt^ameries 

nom. 

nom. 

Unseed,  per  ton. . 

£58 

■5'! 

Dutch  dii<o..     . 

nom. 

nom. 

Rape,  crude  

i^ 

£66 

Russian  finest     . 

Qom. 

nom. 

Cott'nSeeu,cruii' 

£60 

Paris  baskets 

nom. 

nom. 

Petroleum  Oil.pei 

Danish  finest      .. 

nom. 

nom. 

8  lbs. 

i/7l 

1/7) 

l/8j 

Brittany     rolls  - 

Water  White      .. 

1/84 

doi.lb 

nom. 

nom. 

Oil  Seeds, Linaee. 
Calcutta— pel  ton 

^ 

BaeoD— per  cwt. 

Spot 

29  15    0 

29  15,  0 

Irish      

17W 

nom. 

Rape     

£29-10jC30 

£29-1  "£3* 

Continental . .     . . 

172/ 

172/ 

Canadian      ..     .. 

171/-17!/ 

i7i/-'72/ 

Iron— per  ton 

American      ..     .. 

i7i/-ifcoy 

171/-180/ 

Cleveland  Cash  . . 

nom. 

nom. 

Bama — per  owt. 

Irish       

Canadian     , .    . . 

203/ 

i6j/-i65/ 

nom. 
162/-165/ 

Tobacoo  —  duty, 
uiiinanufacturei 

American     ..     .. 

125/-165/ 

125/-165/ 

7/4108/0   per  lb. 

Ohease— perowt. 

Maryland  &  Onto. 

nom. 
0  g g    2 

Dutch 

129/6-160/- 

1 29/6-160/- 

per  lb.  bend    .. 

nom. 
08-2    I 

Cauaulan     ..     . 

nom. 

nom. 

Vitginialeai. 

English  Cheddar 

126/-168/ 

126/-168/ 

Kentucky  leal    .. 

0  7  -0  11 
20-50 

1  6  -6    6 
nom. 

2/  upds. 

0  7—0  11 

a  0—5    0 

1  6-«    6 
nom. 

2/  upda. 

Wilts  loaf    . .     . 

nom. 

nom. 

Latakia 

New  Zealand      . . 

Bice— per  cwt. 
Japan     

nom. 
s.    d. 

nom. 
'.    <i. 
41     3 

Havana 

Manila 

Cigars,  duty  10/6 
per  lb. 

Rangoon  2  stars  . . 

26    3 

26     3 

Timber— Wood. 

B<gB— per  lao. 

Pitch  I'ine    . .     . . 

joo;-  400 

800/^-400/ 

English 

32  0-35  0 

32  0-34  0 

Indian  Teak 

380/—  700 

j8o/— 700I 

Irish      

32/ 

32  0-33  0 

Dauisb 

33  0-35  0 

33  0-35  0 

Turpentine- 

Spelter— 

American  Spot  , . 

124/3 

1 24/ J 

G.O.B.  as  to  posi- 
tion      

;C54-;f50 

jf34-£50 

Copra— per  ton 
Malabar        . .     . . 

46     0     0 

46    0    0 

Flour— per  sack. 

Cey  on 

46    o    0 

46    0    0 

Country  Straight 

F.M.S.  Singapore 

45  10    0 

45  to    0 

Runs  ex  Mill.. 

44/3 

44/3 

F.M.    SUraits     .. 

45  10    0 

45  10    0 

nearly  been  equal  to  the  output  of  the  machinery.  Prices  in 
American  yarns  have  not  fallen  to  the  same  extent  as  to  the 
drop  in  the  raw  material.  The  tone  has  been  very  irregular, 
and  less  business  has  been  done  than  for  some  tune  back. 
Where  transactions  have  been  arranged,  producers  have  been 
able  to  secure  a  very  wide  margin  of  profit.  Export  yarns  have 
attracted  very  little  attention.  Holton  siiinnings  have  been  well 
held,  and  for  anything  wanted  full  rates  have  had  to  be  paid. 


By  agreement  with  the  lead  industry,  the  United  States 
Government  will  be  furnished  with  between  6,000,000  and 
12,000,000  lbs.  of  lead  per  month  this  year  at  an  average  price 
of  3J^d.  per  lb. 


39* 


XTbe  Jfivestors'  IRevtcw. 


April  20,  1918. 


By-the-Way  War  Notes. 

Another  week  of  depression  and  disappointment  lias  gone  by. 
The  gloom  produced  by  the  news  from  the  seat  of  war  has  been 
intensified  by  an  April  blizzard,  and  all  the  courage  our  man- 
hood could  muster  has  sometimes  been  necessary  to  keep  us 
from  flinching.  To  see  day  after  day  our  troops  being  pushed 
back,  now  at  this  point,  now  at  that,  by  the  massed  superior 
forces  of  the  enemy,  by  his  formidable  armaments  in  artillery 
of  all  descriptions,  and  by  his  Paraguayan  doggedness,  and  to 
see  no  end  to  all  the  slaughter  except  continued  retreat,  all  this 
has  been  trying  in  tlie  extreme,  and  has  disposed  us  to  exag- 
gerate both  the  success  of  the  enemy  and  the  importance  of  our 
withdrawals. 

Last  year  nobody  expected  such  a  crisis  as  that  in  which  the 
country  now  finds  itself.  Kven  after  the  Russian  Revolution 
had  taken  place  and  that  country,  by  the  action  of  what  then 
appeared  to  be  its  most  responsible  and  capable  citizens,  had 
sent  the  Roinanoffs  and  their  conjuring  furniture  to  the  right- 
about, we  kept  serene  in  our  belief  that  all  the  Allies  would  hold 
together  to  the  end.  But  now,  when  the  efiects  of  Russia's 
collapse,  and  the  betrayal  of  the  people  by  the  Bolshevik 
anarchists  and  idealists',  have  enabled  the  Germans  to  summon 
their  armies  back  from  the  Eastern  front  to  be  hurled  on  the 
French  and  ourselves,  we  are  disposed  to  speak  harshly  of 
Russia,  and  to  blame  upon  her  desertion  all  the  trials  and 
anxieties  of  our  present  situation. 

This  is  a  mistake,  for  we  have  only  ourselves  to  blame.  It  is 
not  upon  the  head  of  Lenin,  Trotsky,  or  on  that  of  any  Russian 
agitator  of  a  day  or  an  hour  who  may  be  tossed  to  the  top  by 
the  turmoil,  but  upon  our  own  Government  that  the  condemna. 
tion  must  fall.  Colonel  Repington,  we  believe,  says  no  more 
than  the  truth  when,  in  defending  that  able  general,  now  sacri- 
ficed. Sir  Hubert  Cough,  he  declared  that  the  Fifth  Army 
Gough  commanded  was  left,  without  reserves,  to  guard  a  much 
wider  portion  of  the  front  than  it  had  strength  for,  and  that  to 
its  weakness  and  the  thinness  of  its  line  must  be  ascribed  its 
hurried  retreat  before  the  German  drive.  But  for  the  courage 
of  the  Army  itself,  and  of  the  Britisj^  and  French  troops  near 
it,  the  drive  to  the  rear  might  have  led  to  irretrievable  disaster. 
Everything  we  have  heard,  or  that  has  been  suffered  to  trans- 
pire, confirms  this  assertion  of  Colonel  Repington's.  We  owe  it, 
that  is  to  say,  to  the  War  Cabinet  at  home  that  we  came  so 
near  disaster  on  the  Somme,  that  we  lost  many  men  there  as 
prisoners  besides  those  killed  and  wounded  in  the  fight,  and 
that,  although  not  in  such  quantities  as  the  Germans  allege, 
our  stores,  guns  and  ammunition  were  depleted  by  the  swarm- 
ing Germans  to  an  extent  that  probably  ^^10,000,000  would  not 
replace.  The  food  we  had  stored  for  our  men  went,  as  the 
Germans  have  boasted,  {o  sustain  their  troops,    and   the   guns 


and  ammunition  seized  are  being  used  against  «u,  if  not  tn 
Belgium  and  French  Flanders,  then  on  the  front  east  of 
Amiens.  It  is  all  a  horrible  story  of  neglect  and  indifference  at 
home  and  of  an  army  heroically  battling  to  avert  disaster  in 
Flanders ;  a  story  so  abominable  as  to  prompt  the  suspicion 
that  there  must  be  traitors  about.  There  may  not  be,  but  self- 
seeking  and  political  "  log-rolling  "  there  is  in  nauseating 
abundance. 

And  the  tale  of  loss  does  not  end  on  the  Somme.  It  is  be- 
cause of  the  failure  to  have  reserves  ready  to  support  General 
(iough's  Army  in  the  fighting  which  broke  out  on  March  21, 
that  the  Germans,  although  ultimately  stopped  in  their  rush 
westward,  have  so  far  been  able  to  prevent  the  French  and  our- 
selves from  counter-striking  with  decisive  force.  They  have 
also  been  free  to  mass  new  hosts  against  us  in  the  old,  blood- 
soaked  battlefields  of  French  and  Belgian  Flanders.  The  Ger- 
mans have  more  than  1,000,'cioo  of  men  huddled  up  against  us 
there,  and  we  are  at  bay  with  our  backs  against  the  wall,  as 
Sir  Douglas  Haig  said  in  a  rousing  appeal  to  his  armies, 
striving  unceasingly  day  and  night  to  keep  the  enemy  from 
penetrating  our  lines  and  forcing  his  way  through  to  the 
Channel  ports.  And  we  shall  have  to  go  on  fighting  for  weeks 
yet,  it  may  be  for  months,  fighting  on  until  the  enemy  is  spent. 
This  is  all  the  dark  side  of  the  picture,  and  it  would  be 
foolishtotry  to  paint  any  bright  colours  into  it  as  it  looks  this 
Thursday  morning.  A  ding-dong  pounding  to  the  death  it  has 
become,  and  because  it  is  a  pounding  mostly  in  the  open  we 
shall  win.  Rumour  credits  Hindenburg  with  the  determination 
to  sacrifice  1,500,000  German  men  before  arriving  at  a  willing- 
ness to  give  up  the  insane  ambition  of  the  Prussian  savages, 
and  it  already  looks  as  if  his  swinish  estimate  was  in  rapid 
course  of  fulfilment. 

But  if  so  it  means  that  we  also  must  sacrifice  many  thoosands 
of  our  men  before  we  can  attain  to  the  necessary  and  certain 
victory.  It  thus  is,  as  we  wrote  in  the  end  of  February,  ion;  :— 
"  We  have  no  choice  but  to  go  on  killing  and  being  killed, 
killing  especially,  until  all  power  to  go  on  committing  crime^i 
has  been  driven  out  of  the  Prussian  and  his  dupes  for  ever." 
That  is  the  great  labour  of  Hercules  laid  u})on  us  and  our 
Allies.  From  the  point  of  view  of  the  horrible  piece  of  work  to 
be  done  there  is  nothing  to  be  depressed  about  in  the  present 
situation.  The  killing  of  the  foe  goes  on  apace.  Perhaps  the 
war  correspondents  are  a  little  too  fond  at  times  of  dwelling 
upon  the  tremendous  slaughter  of  the  enemy  by  our  troops,  and 
likewise  too  careful  to  say  as  little  as  possible  about  our  own 
losses;  but,  all  allowances  made,  it  is  unquestionable  that  the 
open  fighting  now  forced  upon  the  ejiemy  is  costinfi  him  far 
greater  losses  than  it  costs  us.  His  innate  cal'ousness  and  his 
mode  of  attack— masses  of  men  hurled  forward  in  waves- 
insure   that   it   is   so.     And   one  of   the     things    to   be   always 


THE 


DISTRICT  BANK 

Th.e  Manchester  &  Liverpool  District 
Bankingf  Companii  Limited 


Paid-up  Capital 
Reserve  Fund 


■jt;  ,:; 


1    ., 


Deposits        -        -        ' 
Cash,  &c.,  and  Bills 
investments 
Advances      -        -        • 


£ 

1,896,000 
1,250,000 

40,592,887 

20,293.964 

8,942,617 

14,608,120 


3lst  December,  1917. 


Head  Office:    Spring  Gardens,  Manchester. 

London  Office  :  75,  Cornhill,  E.G.  Liverpool  Office  :  Water  Street 

and    215    Branches  and  Sub-branches  in  Lancashire,  Cheshire,  Staffordshire,  Shrop- 
shire, Yorkshire,  Derbyshire,  Cumberland,  Westmorland  and  North  Wales. 


Applications  received  at  every  office  for 

NATIONAL    WAR     BONDS. 

Bank  of  England  issue  in  multiples  of  £50. 

Post  Office  issue  in  multiples  of  £5. 

Nominative  Bonds  £S  each  issued  in  exchange  for  cash. 


A*Rrt.  20,  191 8. 


^be  Jnvestovs'  IReview. 


393 


remembered  in  following  the  course  of  the  battle  is  that  Sir 
Douglas  Haig  and  his  commanders  make  it  a  controlling  prin- 
ciple in  their  tactics  always  to  avoid  as  far  as  possible  any  un- 
necessary sacrifices  ot  their  troops.  We  do  not  stick  to  posi- 
tions that  are  menaced,  and  long  after  they  should  have  been 
given  up,  out  of  mere  bravado,  or  to  give  material  for  boasting, 
but  withdraw  in  time  and  form  in  new  positions  where  the  de- 
fence can  be  renewed  or  the  counter-attack  organised  to  the  best 
advantage. 

1-ook  how  the  fight  for  Meteren  and  Wytschaete  was  handled. 
The  two  villages  were  lost  and  retaken  more  than  once;  and 
again  and  again  massed  German  attacks  were  beaten  off  with 
heavy  losses.  In  the  end,  however,  the  villages  were  evacuated 
becau.se  the  cost  in  casualties  of  maintaining  our  troops  there 
was  too  great  to  be  borne.  In  lik^  manner  the  enemy's 
superiority  on  the  Lys  front  induced  Marshal  Haig  to  withdraw 
his  men  to  a  new  line,  which  was  done  in  good  time  without 
knowledge  of  the  enemy,  and  therefore  without  loss.  Everywhere 
the  enemy's  gains  are  costing  him  an  excessive  price,  and  bring 
him  nothing  substantial  in  the  way  of  approach  towards  the 
victory  he  hungers  to  win  and  clamours  for.  Our  retreats 
always  baulk  his  attempts  to  outflank  and  cut  off. 

The  Prime  Minister  was  right  when  he  told  the  House  of 
Commons  on  Tuesday  that  "  the  Germans  were  aiming  at  de. 
stroying  the  British  Army,  and  had  not  yet  got  it  out  of  their 
way."  "We  have  lost  territory,"  he  went  on,  "but  we  have 
lost  nothing  vital,"  which  was  happily  true.  The  statement  is 
confirraed  by  every  soldier  who  comes  'back  from  the  fighting 
line.  It  is  the  opinion  of  the  Allied  Generalissimo,  General 
Forh,  of  brave  old  M.  Clemenceau  likewise,  and  in  due  time  its 
truth  will  become  manifest.  The  killing  has  but  to  go  on,  our 
lines  have  but  to  remain  unbroken,  to  witness  the  fullest  justi- 
fication of  our  hopes  and  aspirations. 

In  the  insane  pursuit  of  a  sordid  and  brutal  ideal,  a  German 
sword-peace  of  domination,  the  German  race  is  busy  destroying 
itself.  All  the  visions  of  unheard  of  wealth  waiting  to  be  grabbed 
up  and  stuffed  into  the  pockets  of  the  Germans  have  been  made 
unrealisable  by  the  devastation  the  war  has  already  wrought 
within  the  two  robber  empires  themselves.  Is  the  HohenzoUern 
criminal  lunatic  gaining  anything  substantial  by  the  ravages 
his  troops  are  busy  perpetrating  in  Russia?  Is  Finland,  whose 
conquest  is  being  carried  out  in  the  usual  savage  fashion  of  .the 
Prussian — there  was  three  days  fierce  fighting  before  the  Ger- 
mans captured  Helsingfors — going  to  turn  out  a  profitable  in- 
vestment? Has  anything  been  gained  by  the  conquest  of 
Batum,  just  announced  as  effected  by  troops  labelled 
"Turkish  "  ?  Is  food  for  the  hungry  populations  of  the  two  empires 
being  obtained  from  anywhere?  No,  and  the  savage  "peace" 
imposed  on  Russia,  Poland,  and  Rumania  is  directly  conducing 
to  barrenness  and  future  famine  all  over  middle  Euiope.  In 
no  part  of  the  East  is  Germany  laying  the  foundation  of  undis- 
turbed future  domination.  Everywhere  her  resources  in  men 
and  in  credit  are  being  wasted  to  exhaustion.  Yet  such  is  the 
madness  and  the  lust  of  thieving,  amid  the  agony  of  the  de- 
termining struggle  now  going  on  in  the  sodden  lands  of 
Flanders,  that  German  troops  are  being  sent  to  Palestine  and 
Mesopotamia  as  well  as  to  the  Balkans  to  try  and  keep  up  the 
fight,  and  all  around  the  shores  of  the  Allios'-locked  I31ack 
Sea  killing  and  thieving  proceeds.  The  drain  on  the  crumbling 
empires  is  thus  continuous  and  exhausting,  and  as  long  as  the 
Prussian  persists  in  his  madness,  and  continues  to  dream  of 
holding  the  world  down  until  he  has  stolen  all  it  possesses,  so 
long  is  the  certainty  of  Germany's  ruin  the  one  point  most 
conspicuous  to  us  all  even  amid  the  sombre  hues  of  the  present 
apparent  chaos. 

One  of  the  .strongest  .secondary  grounds  the  Allies  have  for 
unshakable  confidence  in  the  ultiinate  issue  of  the  war  lies  in 
the  swift  development  of  the  Air  Service  since  the  fighting  began. 
Our  own  progress  in  the  production  and  use  of  aeroplanes  has 
been  marvellous  and  unrivalled,  and  our  airmen  have  proved 
to  be  worthy  comrades  of  the  intrepid  Frenchmen,  who  unques- 
tionably lead  the  world  in  this  altogether  new  form  of  warfare. 
I^st  week  has  been  so  gloomy  and  otherwise  adverse  that  most 
days  our  air  fleets  have  not  been  able  to  do  much  damage  to  the 
enemy  in  front  of  us,  or  to  spy  with  their  usual  daring  and 
acumen,  but  an  accident  or  domestic  treachery  helped  us  in  de- 
stroying the  principal  aircraft  factory  in  Germany,  at 
Frederichshaven  across  Lake  Constance  from  Switzerland,  and 
directly  the  atmosphere  gives  us  the  least  encouragement  at  any 
spot  on  the  front  our  machines  are  away  out  over  the  enemy's 
lines  carrying  destruction  wherever  they  go.  Every  month  sees 
their  numbers  increased,  and  the  energy  and  skill  of  the  pilots 
also.  Soon  an  immense  American  air  fleet  will  be  engaged  along- 
side the  French  and  our  own.  Well  may  German  citizens  plead  for 
a  convention  among  the  belligerents  to  put  a  stop  on  both 
sides  to  attacks  upon  the  civil  populations.  Undoubtedly  it 
would  be  a  humane  step  to  take,  but  who  could  trust  the  Prus- 
sian to  keep  any  such  bargain?  No  one;  he  has  made  it  im- 
possible to  trust  him  in  anything,  and  we  may  remind  German 
civilians  that  the  Allies  have  never  attacked  any  German  town 
with  the  ruthless  wantonness  habitually  displayed  by  the 
Germans  in  their  raids  upon  London,  Paris,  and  other  parts 
of  the  countries  they  have  so  long  matured  their  plans  to  attack. 
Our  aims  are  always  military,  and  will  become  increasingly  so 
as  the  war  goes  on.  If  in  carrying  out  these  aims  German 
civilians  are  hit  and  killed  that  cannot  be  helped.  They  should 
keep  out  of  the  way.  Were  we  to  give  a  pledge  to  leave  certain 
places  in  Germany,  labelled  "civil"  towns,  alone,  the  Prussians 
would  surely  forthwith  make  them  militarv  depofs  or  centres  of 
warlike  manufactures.     The   Allied   aeroplanes   are    to  he  used 


in  full  liberty  and  to  their  utmost  development  to  help  to  win 
the  war. 

Now  that  the  Greek  army  is  reorganised,  tempered  up  and 
ready,  we  may  expect  to  see  plenty  of  occupation  given  to  the 
.\ustrian  and  German  brigands,  and  their  Bulgarian  and 
Turkish  dupes  in  the  Balkan  Peninsula.  There  have  been 
indications  this  week  that  the  active  campaigning  there  is  about 
to  begin,  and,  as  a  start,  10  villages  have  been  taken  from  the 
enemy.  Probably  the  Austrian  struggle  in  the  barrier  mounUins 
of  northern  Italy  will  also  be  resumed  soon,  and  open  another 
sluice  through  which  will  flow  the  bulk  of  what  remains  of  the 
vitality  in  the  Habsburg  Empire.  Well  might  the  Emperor  Karl 
try  to  scrape  acquaintance  with  Republican  France  by  sur- 
reptitiously writing  smooth  things  to  be  submitted  to  French 
ministers  for  their  ensnareraent.  When  found  out  he  could  only 
lie  like  his  scapegoat  ex-minister,  Czernin.  He  must  be  a 
pitiable  creature,  and  in  a  despicable  condition,  but  there  is 
iio  room  for  pity  amongst  the  democracies  of  the  West  for  any 
sacrosanct  despot,  ruling  still  by  prestige  and  tradition  in  a 
world  fast  being  blown  out  of  existence  by  the  guns. 

It  was  well  to  avoid  rejoicings  over  the  small  losses  of  ships 
by  enemy  submarine  depredations  in  the  two  weeks  ended 
April  6,  for  the  latest  return,  embracing  the  week  ended  April  13, 
gives  us  a  blunt  reminder  that  the  danger  remains  as  active  as 
ever,  if  not  quite  so  powerful  for  mischief.  Last  week  11 
British  ships  of  1,600  tons  and  over  were  sunk,  and  4  of  lesser 
tonnage,  besides  one  fishing  boat,  or  15  in  all.  This  compares 
with  a  total  of  6  in  the  previous  week,  and  of  13  in  the  week 
ended  March  30.  Even  this,  however,  is  well  below  the  average 
for  both  February  and  March,  and  from  the  gross  returns  given 
deductions  have  to  be  made.  All  the  11  big  vessels  seem  to 
have  been  sunk  last  week,  but  two  of  the  four  smaller  ships  re- 
turned were  sunk  in  the  last  week  of  March.  They  were  two 
sailers  of  about  100  tons  each.  Of  the  dozen  ships  returned  as 
unsuccessfully  attacked,  moreover,  one  should  be  referred  to 
the  last  week  of  March,  and  one  to  the  first  week  in  April,  so 
that  the  nett  sinkings  and  unsuccessful  attacks  for  the  past  week 
were   only  25  too  many. 

MINING    RETURNS    FOR    MARCH. 

Ashanti.— 7,360     tons;     8,886    ozs. ;     value,     ;i'37,686     (Fee, 

Aurora  West.— 13,200   tons  ;  profit,   £536  (Feb.,  .£398). 
Balaghat.— 6,500  tons;   1,599  o^s.  fine  gold  (Feb.,   1,471  ozs.). 
Bantjes.— 19,600  tons;   loss,   ^^521    (Feb.,  loss,  ;£i,204). 
Brakpan.— 53,500  tons;  profit,   £iy,oii    (Feb.,   .^$,'31,909). 
Champion  Reef.— 28,196  tons  ;  8,814  ozs.  gold  (Feb.,  8,033  ozs.). 
City  and  Sub.— 21,665  tons;  profit,  ;6'7.757  (Feb.,  ;iO,i53). 
City  Deep. — 60,000  tons;  profit,  £^S<°^3  (Feb.,  £^^,2^7). 
Cons.      Langlaagte.— 49,150      tons;      profit,    ^14.094      (Feb., 

;^I2,I4l). 

Cons.  Main  Reef.— 53,570  tons;  profit,  ^12,615  (Feb.,  ;f 8,767). 

Crown.— 171,000  tons;  profit,  ;^37'448  (Feb.,   ^^25,552). 

Durban  Rood.— 23,500;  profit,  ;ii,ioo  (Feb.,  /.i,oio). 

Durban  Rood.  Deep.— 25,200  tons;  profit,  £'\,o()t,  (Feb.,  £739). 

East  Rand  Prop.— 121,000  tons;  profit,  ;^6,o84  (Feb.,  ;f 5,434)- 

Ferreira  Deep.— 48,400  tons;  profit,  ^,^22,190  (Feb.,  £i(>,Sos)' 

Gaika.— 3,279  tons;   profit,  ;£i,io2  (Feb.,  ;fi,539)- 

Geduld.— 42,000  tons;  profit,  .£19,233  (Feb.,  ^19,468). 

Geldenhuis  Deep.— 51,700  tons;  profit,  £-jn  (Feb.,  ;£i,o32). 

Ginsberg. — 12,400  tons;  .£11,785;  loss,  £^526  (F<ib.,  loss,  £isi)' 

Glencairn. — 18,000  tons;   profit,    .£406  (F'eb.,  £'^Zc)). 

Globe     and     Phoenix.— 6,196     tons;    profit,     £18,506     (Feb.,. 
£19,200). 

Glynn's  Lydenburg.- 4,053  tons;  profit,  ;£i,447  (Feb.,  £751). 

Golden     Horse     Shoe. — 11,412     tons;     profit,     £9,034     (Feb., 
£9,601). 

Gov.     Areas     Mod. — 108,500     tons ;     profit,     £60,410     (Feb., 
;£'58,6o3). 

Ivanhoe  G.  Corp. — 16,327  tons;  profit,  £5,400  (Feb.,  £5,400). 

Jubitil. — 1,900  tons;  502  ozs.  fine  gold  (Feb.,  503  ozs.). 

Jupiter. — 23,800  tons;  profit,  £584  (Feb.,  £115). 

Kalgurli. — 5,686  tons;  profit,  £520  (Feb.,  £1,530). 

Knight  Central. — 24,400  tons;  loss,  ^£955  (Feb.,  profit,  £113)- 

Knight's  Deep. — 98,000  tons  ;  profit,  £1,778  (Feb.,   £1,038). 

Langlaagte  Estate. — 37,420  tons ;  profit,  £5,309  (Feb.,  £-j,otci). 
Lonely   Reef. — 5,060   tons;   profit,   £8,592   (Feb.,    £9,093). 
Luipaards     Vlei. — 19,320     tens;     loss,      £2,349     (Feb.,     loss, 
£.,64.). 

Meyer    and    Charlton. — 
£14,997. 

Modder  "  B."— 40,700  tons;  profit,  £8,224  (Feb.,  £64,880). 
Modder  Deep.— 41,000  tons;  profit,  £49,176  (Feb.,  £49,459)- 
Mysore. — 66,397  tons;  15,471  ozs.  fine  gold  (Feb.,  15,105  ozs.). 
New  Goch. — 17,150  tons;   profit,   £516  (Feb.,  profit.  .£74). 
New  Heriot. — 7,500  tons;  loss,  £6,086  (Feb.,  loss,  £2,513). 
New  Kleinfontein. — 59,700  tons;  profit,  £5,321  (Feb.,  £3,191). 
New   Primrose. — 17,700  tons;   profit,    £68    (Feb.,   £46). 
New  Unified. — 12,000  tons;  profit,  £1,247  (Feb.,  £642). 
N.  Anantapur. — 4,000  tons;   1,136  ozs.  fine  gold  (Feb.,   1,129 
ozs.). 

Nourse. — 39,100  tons;  £47,219;  profit,  £2,050  (Feb.,  £'2,329). 
Nundydroog. — 21,454  tons;  6,482  ozs.   fine   gold   (Feb.,  6,i86 
ozs.). 

Ooregum. — 30,563  tons;  7,467  ozs.  fine  gold  (Feb.,  7,460  ozs.). 
Pahang   Cons. — 15,000  tons;   output,    150  tons. 
Princess  Estate. — 18,500  tons;  loss,  £1,440  (Feb.,  loss,  ^2,056). 
Randfontein   Cent. — 129,000  tons;   loss,   £9,841    (Feb.,   pro.<it, 
£20,909). 


i^2,349     (Feb.,     loss, 
1,220    tons;    profit,    £'22,511     (Feb., 


394 


(Lbc  Jnvestora'  TRevlew. 


Afril  20,   1918. 


Kobinson  Deep. — ^48,600  tons;  profit,  £9,352  (Feb.,  ;^8,96i). 
Robinson.— 41,900  tons;   profit,  ^■2,503  (Feb.,  ,^3,003). 
Rose  Deep. — 51.700  tons;  profit,  /'13,99b  (Feb.,  /i2,3i3). 
Shamva. — 54,198  tons;    profit,   ;t '1,078   (Feb.,  ^11,137). 
■Simmer     and    Jack. — 56,300     tons;     profit,     ;£'i5,7a9     (P'cb.. 

Sons  of  Gwalia. — 13,393  tons;  profit,  ^2,067  (Feb.,  ;^i,926). 
Simmer  Deep. — 44,100  tons;  loss,  £',("7  (Feb.,  loss,  /3,2i9). 
Springs.— 33,020  Ions;  profit,  £33,613  (Feb.,  ;i:30,4i3).~ 
Sub  Nigel.— lo, 100;  profit,  ;f8,56i   (Feb.,  /8,303). 
Sudan.— 2,920  tons;  output,  ^4,088  (Feb.,  ,^3,837). 
Transvaal   Gold. — 14,060  tons;   profit,   ^5,940  (Feb.,   /■4,9oo). 
Van   Ryn.— 34,800  tons;   profit,  ^^8,027   (Feb.,   i'8,346). 
Van  Ryn  Deep.— 44,750  tons;  profit,  /54,o7i  (Feb.,  2'52,o62). 
Village  Deep.— 50,800  tons;   profit,  ^^6,273  (Feb.,  ^2,438). 
Village    Main     Reef.— 25,100    torts;    profit,     ;f  10,579    (Feb., 
/8,846). 

Wanderer.— 7,790  tons:  loss,  jf  1,863   (Feb.,   loss,   ;^96o). 
Witwatersrand. — 38,100  tons;  profit,   ;f  11,258   (Feb.,  ;f7,3oi). 
Wit.   Deep.— 35,200  tons;   loss,  ;^9i2  (Feb.,   loss,  ^^6,876). 
Wolhuter. — 30,000  tons;  profit,  ;ff5,i84  (Feb.,  ;^3,902). 


MARCH  RUBBER  OUTPUTS. 


PUBLIC  INCOME  AND  EXPENDITURE. 

The   following   are   the   receipts   into   and   issues   out     of    the 
Exchequer  between  April  1,  1918,  and  April  13,  1918:— 


— 

Estimate 

for  the 

Year 

1918-19x9. 

Total  Receipts 

into  the 
Exchequerfrom 
April  I,  1918,  to 

April  13,  1918. 

Total  Receipts 

into  the 
Exchequer  from 
April  I,  1917,  to 

Balances  in   Exchequer  on 

April  I— Bank  of  Engbnd  . . 

Bank  of  Ireland   .. 

£ 

£ 
19.361,578 
1,663,452 

£ 

25,209.947 
1,225,912 

Rbvenub. 

21,03(^030 

«6,435.«39 

Customs 

2,37?,ooo 
770,000 
932,000 
307,000 

110,000 

12,068,000 

8,370,000 

13,000 

1,500,000 

766,231 

Excise  ; 

Estate,  &c.,  Duties 

1,161,000 
238,000 

Stomps 

Land  Tax 1 

House  Duty    .' f 

Property  and  Income  Tax  and 
Super  Tax    

140,000 

Excess  Profits  Duties,  &c 

Land  Value  Duties 

7,200,000 

Post  Office  

Receipts    from    Sundry 
Loans,  See 

Miscellaneous 

38«,9o6 

'Kevenue 

- 

27,211,231 

24,868,406 

Total  

48,241,261 

170,000 
173.506,000 

4,100 
3,100,000 

'32,i8a,ooo 
47,500,000 

51,304,265 

Other  Rkckipts. 
Repayment  of  Advances  for  Bu 
For  Treasury  Bills  (tor  supply 
For  5  per  Cent.  Exchequer  Bo 
for  3  per  Cent.  Exchequer  B 
For  Wat  Savings  Certificates 
For  4  per  Cent.  War  Loan,  192 

Cent.  War  Loan,  1929-1947 
For  National  War  Bonds    .... 

llion  

)  

59,163,000 
2,609,000 

1,700,000 

27,500,000 

nds,  1922   

Mds,  1930    .... 

)-i942,  and  5  per 

Temporary  Advances— Ways  and  Means 

61,055,000 

ToUl 

1 

304,703,361 

203,331,265 

♦Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account. 


Expenditure 

AND  OTHER   IsSUSS. 


Estimate  for 
the  Year 
1918-19. 


Expenditure. 
Permanent  Charge  of  Debt 
Interest,  &o.,  on  War  Debt .. 
Payments  to  Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services   

"Supply  Services    


Expenditure 


Other  Issues. 

"For  Advances  for  Bullion  

Fer  Advances   for    Interest    on    Exchequer 

Bonds    under    the     Capital     Expenditure 

(Money)  Act,  1904    

For  Treasury  Bills  for  Supply 

For  War  Loans,  Exchequer  Bonds,  &c.,under 

Section  34  of  Finance  Act,  1917  

l^or  War  Expenditure  Certificates  under  War 

Loan  Act,  1916    

For  Depreciation  Fund  under  '  the    Fiiiance 

Act,  1917  

^^'u   ^°'"°f!    Fund,    igio-iV,    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  (b)  .. 

1  emporary  Advances  repaid— Ways  and  Means 


Aalanees  in  Exchequer- 
Bank  of  England. 


1918.     I     1917. 
April  13.    April  14 

J  £ 

'5.9^3, >I5  2',o65,372 


B«.k  of  Ireland ..:::;  X7,t7,l\"7>^i^ 

ToUl 


Total  Issues 
out  of   the  Ex- 
chequer to  meet 
payments   from 
April  It  igi8,  to 

April  13,  1918. 


2,330,062 
".953,091 

90,000 

197,882 
69,424,000 


Total  issues 
out  of  the  Ex. 
chequer  to  meet 
payments   from 
April  I,  1917,  to 

April  14, 1917. 


8*.995,035 


84,909 
tl9),547,ooo 

1,126,344 

+3,600 

1,000,000 

20,000 


287,026,888 


17.676,473 


304,703,361 


£ 

2,887,903 

3.533,242 

90,000 

230,139 
85,869,000 


92,610,290 


84,909 

68,454,000 
325 


20,000,000 


181,249,524 


22,081,741 


203,331,265 


"f  TT^'**?^  °'"'  ""'standing  on  April  13,  ,9,8 "£946,747  000 

•  Includes  £206,000,  the  proceeds  of  which  were  not  ca^^iVd  to  tte  Bxcheouer 
within  the   period  of  the  account,  besides  a  part  (not  vet  ascertoined  and 
brought  to  account)  of  the  Bills  tendered  a,  subscriXns"  iJltionaU^^^^^^^^ 
.oVaUo^lV^'^Sr""  "'  "'"'  "■"^Certificates  tendered  as  subscrip°,"t 


Company. 


Abojne  Clyde 

Allagar 

Alliance 

Alor    Pongsu 

Ampat 

Anglo-Java  . . 

Anglo- J  chore 

Anglo  -  Malay 

Anglo-Sum... 

Asahan 

As.  T.Ceylon 

Ayer  Kuning  . 

Bagan6«rai..' 

Bab  Lias  . . . . ' 

BajoeKidoel.; 

Bakap 

Bambrakelly .: 


Current 
Estimate. 


444.3740 
338,100a 
208,394a 
276,412a 
230,000 

2.525.395a 
300,000 

1,720,000 
940,000 
;SO,coo 
255,000 
821,071a 

413,182a 

454,000 
285,000 
235,0  ra 


340,000 
915,000 
434,000 
440,oco 
318,122a 
777.995a 
185,000 
495.030a 


Bandar  Sum. 

Bandjarsarie  . 

Bandarapola  . 

Bantardawa. . 

Bantam 

Banteng 

Bauk  Rablt.. 

Batang  Mai.. 

Batu  Caves  . . 
.,  Matang . 
„  Rata  . . 
„    Tiga    .. 

Be'uf'riB'rn'o 

Bekoh 

Beranang     . . 

Bernam-Per'k 

Bidor..        ..! 

Bikam  ..! 

Bode  .. 

Bradwall 

Braunston 

Brit  BornPara 

British  Malay 

Brooklaads , . 

Broome 

Bruas-Perak  . 

Bukit  Cloh  .. 
„    liok    .. 
..    Kajang 
.,    Lintang 
,,    Mert'jm 
,,    Panj'ng 
,,    Rajah.  . 
,,    Semba.. 
Carey  United 
Castlefield 
Cent.  Trav, 
Ceylon     Para 
Ceylon  T.&R. 
Changkat-Sal. 
Cbemb  Malay 
Cheras  .. 
Sbersonese 
Cbeviot . . 
Cbimpul 
Chota    . . 
Cicely    . . 
Cluny     .. 
Cons.     Malay 
Dalkeith 
Damansara  . . 
Dangan 
Dennistown. . 
Deviturai 
Dimbula 
Djasinga 
Djember 
Doranakande. 
Duff  Develop. 
Dusun  Durian 
g.  Ind.  &Cey 
Edinburgh  . . 
^Iphil    ..     .. 
Emerald 
Eqw  Seng     . . 
Escot     . .     . . 
Fed.  Malay  S. 
Fed.  Selangor 
Galaha  . .     . . 
Galang  Besar 
Gan  Kee 
Garing  . . 
Gedong . .     , . 
Gen.  Ceylon  . 
Glen  Bervie. . 
Glendon..    .. 
Glenshiel     . . 
Golconda 
Golden  Hope 
Grand  Cent..  ^,/^y,^v:ji 
Gula  Kal'p'g. 1 1,066,000 


440,000 

243,019a  1/2.48 
283,600a 


LastAll-^ 
in  Cost.. 


Mar., 
lbs. 


(+)or(-)  ■S 
lb..         g 

!  !  s 


1/0.50 
1/1.62 


1/320 
/11.23 

/io| 
1/326 


«/49« 


236,oo^a 
540,000 
3^5,000 
300,000 
419,500a 
372,032 
264,930a 
442,142a 
500,000 
2I0,50D 
718,388a 
620,000 
450,000 
114,673a 
229,000a 
304,500a 
940,000 
280,000 
932,000 
536,900a 
1,071,000 

75i,86ba 

4}0,000 

680,000 
230,275a 

1,055,584a 
235.031a 

l,oi3,oooa| 
457,i02ai 
284,300a:  1/5.39 
689,6590!    /10.58 
700,000  I  1/3.33 
250,000  {    1/6.9 
228,51 -a       — 
400,000     /11.44 
244,892a   1/2.54 
9i7,59oal      — 
475,000 


1/1.65 
•/'.37 
1/1.64 
1/3 
/9"3 

1/1.50 

I/0.25 

1/3.75 


1/2.65 

1/1.83 
1/3.62 
1/5.22 
1/2.58 
/11.80 
i/i_ 

1/2.5 

1/4.42 

1/6.47 

1/0.38 

1/1-57 

1/2  .73 
/10.74 

«/045 
/11.20 

»/317 

1/0.07 


1/2.34         — .     — 

1/4-31 
1/0.47 
1/1-37 


■9.474 
17,000 
3.701 
10,000 
14,800 
284.470 
18,802 
64,183 
51.637 
37.865 
12,526 
50,000 
13.500 
42.361 
72,000 
13.200 
•6.995 

3»,44« 
23.705 
15,000 
14,480 
93.281 
22,690 
23,000 
■8,356 
35.868 
9.414 

■  7.500 
39.500 
21,000 
32,694 

■  3,161 
20,725 
26,300 
31,800 
24,868 
31,043 
27,900 
17,500 
62,500 
44,948 
27, '45 

6,219 
16,000 
26,000 
51,000 
18,400 
42,276 
31.863 
34.844 
42,300 

22,455 

26,480 


847,203a 
225,000 
58  ,671a 
345,670a 
273,000 

433.554a 

266,700a 

205,5970 

804,470a 

790.371a 

210,000 
360,000 
252,000 
565,700a 
172,450a 
244,3200 
1,845,000a 
370,000 
125,5831 
450,000 
200,000 


1/4.78 
/II.05 


1/4-47 
1/7.40 
/10.71 

1/1.15 
/9.I4 
1/5-88 

"!_ 
1/2.32 
1/9.50 
/11.68 


-^  24,370 
-I-  16,500 


1/5-38 

1/1-75 
1/1-27 


277,508a 

l,oiJ5,oooa 
300,000         — 
275,000  i      — 
488,9400!  l/2.t8 
596,1040!    /ir.36 
352,025a 

4,759,405a 


Harpenden 
Ilayoep. . 
Heawood 
Hewagam 
Hid.  Streams 
Highlands  .. 
Inch. Kenneth 
Insulinde 
Java  Amal.  . . 
lava  R  &  Prod 
Java  Para  . . 
Jeram  . .  . . 
Jobore  Para. . 
,,  Rub.  Lds 
Jong  Landor 
Jugra  Estate 
Jugra  Land  .. 
Juru  Estates.. 
Kajang  . 
Kali  Glagab. . 
Kamp  Kua't'n 
Kaauning 
Kapar  Par: 
Kaiak  .. 
Kasintoe 


311,107a 

312,4030 

275,000 

646,2000 

242,739a 

1,426,518a 
440,000 
330,000 
3iS,oaoa 
620,000 
265,692a 
300,000 
190,362a 

'.147.3480 
680.000 
378.613 

1,398,000 
159,200a 
391,0000 
250,000 
362,500a 
810,000 

1.075.13«- 
241,019a 
382,6730 


1/1-41 
1/0.72 

/■li 
/11.49 

1/^5 
1/2.80 

1/0.01 
1/3.71 
1/0.39 


1/1.20 

1/2.14 
■/3_J 

1/0.60 
/10.02 
1/1.88 
1/1-95 

1/2.07 
1/1.49 
/10.91 

t/»-j6 


—  17,350 

—  14,603 

—  13.300 

—  18.979 

—  1,047 

—  84,375 
42,730 

—  16,730 
+     4,227 

—  -,.121 

—  13.200 

—  6,000 

—  74.560 

—  J3,68o 

—  3.600 
4-  7.300 
+  8,700 
+  11,856 

—  _908 

+    32,435 

—  IO,}O0 

4.350 

—  37.327 

—  6,100 
9.130 

■t-  4.460 
-f     1,000 

—  26,940 

—  «7.oi7 

^  «i" 
+     6.845 


Aggregate 
~bs. 


373.297 
60,300 
20,347 

5«.W7 
106,920 

705-953 
302,123 
322,839 
628,146 

3"4,9'1 
213.416 
l8i,6.o 
72,500 
262,336 
470,000 
■34.5fO 
239,023 


(-t-)oc(-) 
lb«. 


121,980 
4  7,487 

18,077 
140,623 

61,700 
i86,aoo 

82,396 

70,000 
142,012 

ii7,o;o 
211,923 
4'. 53* 
406,889 
50,300 
213,760 
108,000 
171,038 
207,863 
115,738 
101,870 
38,500 
443.000 
99.COO 
33,900 
212,937 
194.949 
48,360 
87,000 
50,404 
69,200 
31.530 
97,800 


10 

1  I,6o8,oo3 

■  2 

1     403,706 

3 

12,041 

9 

349.140 

9 

128,265 

6 

132,026 

5 

120,252 

3 

163.390 

6 

143.249 

6 

113.282 

3 

101,970 

3 

131,626 

1-    3 

91.394 

3 

976,340 

1     3 

'^ 

3 

1*9.496 

3 

59.627 

3 

93.900 

3 

^^ 

10 

3*2,370 

8 

304,800 

3 

203,000 

3 

105,101 

3 

151,007 

12 

161,309 

9 

3 

a?:s; 

9 

472,562 

12 

416,536 

11 

1,128,139 

i    12 

i6s,*oo 

1    3 

90,660 

12 

114,617 

1     2 

630,460 

.    9 

63,000 

3 
3 

«93.9<« 
S5.328 

3 

146,000 

49.2« 
6.888 
16,700 
13,166 
96,904 
19,61a 
591 
5, 086 
67,716 
13-7'4 
8,770 
31.50* 
32,lco 
14,955 
13,811 
X4,36» 
34.500 
6co 
12,939 
24,544 
23.456 
46.115 
98,958 
47.689 
".392 

697 
13,500 

18,000 

12.34) 
18,130 
70,331 

3.900 

—  114,668 

39.883 
14.679 

3,343 
11,011 
13.276 
34.000 
16.883 
11,444 
19,250 
14.890 
30,727 
12.563 
42.484 

8.092 
44.898 
37.000 

—  38.613 
+      49.415 

—  14,616 
+  19.3*0 
+  6,175 
■t-  131.768 
-f  38,100 
+  3,400 
+      3^.937 

—  5.158 
+      12,095 

—  30,000 

—  4.  ■94 
+       1.300 

—  8,815 

—  17,820 
31,000 
27,576 

1,178 
11,390 

4.4  J7 
42,026 
18,774 
48,658 
»».033 

6.527 
11,430 
35.S05 
17.007 
70,580 
65.952 
62.327 
14.848 

n' 
8.200 
9.900 
67.350 
9,890 
15,940 
19,300 
16,600 

-4-  31,016 
—  1.524 
+  16,270 
+  121,255 
32,696 

37,9'3 

53.349 

3.066 

4.640 

32.417 

3,000 

85,780 

30,339 

1.355 

8,616 


Afril  20,  1918. 


ube  5nve8tor8'  IReview. 


395 


Kawle  Java 

Kepong    . 

Kerala    , . 

KhotaTamp'n 

Killinghall 

Kinianis  ' 

KintaKellas.. 

Klabang,. 

Klanan^ 

Kombok 

Kuala     Klang 
„     Kiiba.. 
,,    LiimpuT 
„     Nal 
„     Pahi 
„  Selangor 

Kunu    . . 

Lanadron 
Langat    River 
Langao,  Java 
Laagkat  Sum. 
L'ngk'n  N.Br. 
Ledbury 
Lendu   .,     .. 
Liaggi   ..     .. 
Lochnagar   . . 
Lon.  Astatic 
Lumut    .. 
Madingley 
Maiedie. 
Maoawale 
Malacca 
Malayalam 
Malaysia 
Malay  Pi'nt'rs 
Manch'rN.B 
Membakut  . . 
MerguiCrown 
Merlimau 
Jhloaerakelle  . 
Mount  Austin 

fjagolle..  .. 
Narboreugh. . 
NebodaCey.. 
^5'wCroc.Riv. 
Nordanal 
N.  Borneo  St. 
N.  Hummock 
N.  Labis      .. 

Oriental 
Padangjawa 
Panawatte    . . 
Panagula 
Pantiya  . .     . . 
Parambe 
Pataling 
Pegoh    ..     .. 
Pelmadulla  . . 
Perak    . .     . . 
Permas  . .     .. 
Pilmoor. .     . . 
Port  Dickson 
P.P.K 


500,000 

640,000 

334,500« 

250,000 

184,400 

344,000 

390,0000 

610,000 

301,412a 

502,0 1  oa 

594,030 

200,000 

158.950 

1,700,000 
187,80011 
200,000 
630,994" 
263,300a 
970,000 

l.40l,373'> 

773. 7 '0" 

520,000 

290000 

691,496a 

225,000 

2,525,020a 
160,000 

1,560,192a 

199.731" 
170,243 
320,000 

4,043,800a 

1,354,179a 
400,000 
337,366a 
616,000 
488,000a 
545.000 

I  ^70, 236a 
155,000 

3,200,000 


1/3.30 

i/g.22 

1/4.30 
1/1.02 
/1 1.88 

/jo.80 

1/2.34 
1/2.36 

/9~3 
/11.75 

1/1.72 

1/405 

1/2.93 
1/4.23 

/"j74  ^ 

I/O  .50 

1/2.24 
/".54 
1/1.52 
1/11.62 

i/2.ia 
1/4.67 
1/3.48 
1/3.03 

l/3~ 


1/6.32 
1/4.3 


60,133 

30,967 

19,(»0 

•23.682 

10,700 

i8,j6i 

38.500 

36,591 

9,700 

11,116 

21,000 

9,616 

8,192 

97,020 

17,500 

14,665 

40,731 

12,500 

40,000 
106,625 
25,162 
63,000 
27,400 
22,800 
29575 
13,843 
114.550 
'•5.174 
70,216 
73.300 
11,647 
12,804 
437 
209,100 
1,290 
11,388 
18,000 
51,713 
36,500 
41,500 
111,309 
14,400 
204,251 


—  8.633 

—  4,540 

—  6,500 
+      1,682 

—  2,050 

—  5.847 
+     8,000 

—  8,900 

—  13.237 

—  24,4(9 

—  25,320 

—  7,953 

—  3.353 

—  42,570 

—  l,ooo 
+        207 

—  13.433 

—  9,291 

—  15.530 

—  18,342 

—  2,823 

—  13,993 

—  6,082 
+      2,500 

—  25,839 

—  3.464 

—  6j,842 
+      3,416 

—  58,532 

—  15,700 

—  3,637 
+      l,49« 

—  20,814 
105,900 

277 

19,168 

6,900 

11,647 

7.500 

4,000 

2,549 

1,900 

37.711 


543.570 
388,650 
77,000 
23,681 
25.700 
227.283 
109,200 
553.385 
60,141 

102,443 
111,000 

86,204 

105,684 

1,310,460 

62,500 

61,548 
149,590 

63,000 
188,500 
339.529 

93.863 
498,000 
117,400 


3  I      122,006 

2  207,622 

3  I      513.303 
27,408 

320.275 
542,200 

11,647 
117,601 

41.675 
848,000 
129,400 

86,015 
167,268 
548.923 
163,500 
559.625 
415,074 
162,241 
2,230,058 


573,750a 

1/1.43 

18,986 

—     4.781 

3 

107,719 

278,100a 

1/5.8 

18,000 

—     9,000 

9 

220,100 

460,000 

11,835 

—  27,370 

3 

86,220 

625,030a 

— 

40,430 

—     7.325 

3 

158,280 

624,364 

1/1.79 

♦56,967 

+      2,663 

2 

110,060 

213,500a 

— 

13.700 

-     8,300 

.3 

40,900 

750,000 

I/I.41 

26,939 

-   36,390 

9 

514,039 

350,000 

1/7.05 

23,3'8 

r        396 

9 

277.745 

Preanger 
Prye       . .     . 
Rani  Travan 
Ratanui..     . 
Rangoon  Para 
Rembia  . .     . . 
Ribu      . .     , . 
Rim       . .     . . 
Riverside 
Rubana  . .     . . 
K.  Es.  Ceylon 
R.  Es.  Johorc 
R.  Es.  Krian.. 
Rubber  Trust 

Sagga     . .     . . 

Sam  pang  Java 

Sapong  . .     . . 

Sapulm'k'nde 

St.  George  . . 

Scot.  Malay . . 

Seaiield..     .. 

Seaport..     .. 

Sedenak 

Segamat 

Sekong  . .     . . 

Selaba  . .     . . 

Selangor 

Fiv 
Utd 

Seletar  . .     . . 

Sembilan 

Sempah..     ., 

Sendayan 

Sengat   , .     . . 

Sennab  . .     . 

Serdang  Cent. 

Seremban 

Shelford 

Siak       .. 

Sialang  .. 

Sing.  Para 
„      United. 

Straits  Rub 

S.S.  Bertam . 

Strathmore  . . 

SuBnatraCons. 
..  Para. 
..       Prop 

SuDgei  Babm 
,,     Batu  . 
,,     Buaya 
,,    Bulob 
,,    Cboh  . 
,,    Kapar. 
„     Kari . . 
,,    Krian 
„    Kruil 
„    M't'ng 
,,    Purun. 
,,    Salak 
,,    Siput . 
,.     Way.. 

Sung.  Chnmor 

Sunaygama..j 


716.450a 
219,024a 
017,209a 
331,346a 

206, 1009 

253,842a 
729,6230 
600,000 

813,197a 
530,000 

353,500a 

700,000 

348,228a 

339,242a 
310,000 

929.931" 

264,000a 
400,000 

455,000 

296,873a 

400,000 

372,000a 

850,000a 

472,004a 

677,2110 

465,50on 

520,413a 

502,500a 
136,300a 
338,000a 
505.427a 
533,471a 
614,000a 
1,040,5150 
435,000 
550,913a 
450,000 
162,153 
665,000 
828,a93a 

693,313a 
22c, oco 
210,000 
551,200 
325.000 

5l5,o«o 
1,700,000 
355.535a 
974.750a 
278,326a 
268,717a 
1,386,644a 
675,000 
515,000 
2,890,912a 
1,350,000 
436,000 
680,000 
729,000a 
235,600 
362,000 
286,150a  I 
501,010a' 
6i5,oooai 
552,965a| 
844,70001 
360,000  j 
618,4920; 
439,700a; 
304,81301 
307,993a 
727,300a 
190,000  j 
565.372a 
560,000 
984,6200 


1/3.30 

i/5j807 

/10.13 

/11.38 
1/5.3 
1/1.41 
1/4.S5 
/11.89 


48,690 
1/3.20 
/II.57 
1/0.64 

1/0.90 
1/6.27 
1/6. 10 

1/2.82 
1/6 
1/0.38 

i/r23 
/10.50 

/".59 
1/1.52 

1/1.185 

1/8.8 

1/2.75 
/9.52 
/9.9t 

1/3.17 

t/4i 

1/1.61 
1/0.80 
1/3.8S 

/loi 

/I1.52 

1/1.76 

1/1-77 
1/0.84 
/11.22 
1/0.89 
/9.18 
/it.85 
1/136 
1/4.12 

t/3.50 
1/2.62 
/10.75 
1/2.85 
/10.069 

/10.52 

1/0.5 

/11.80 

1/4.24 

1/0.97 

1/ 

1/0.18 

t/3.34 


*42,00O 

— 

11,190 

7.722 

— 

10,977 

10,699 

— 

30,077 

2.449 

— 

7.243 

13.300 

— 

2.079 

2,546 

— 

15,784 

29.735 

— 

24.868 

•48,689 

+ 

7.850 

12,689 

— 

4,900 

28,863 

— 

"0,573 

17,100 

— 

5  470 

23,020 

+ 

6,553 

35,940 

— 

14,810 

6.555 

+ 

21,398 

•7.771 

— 

15,629 

2,490 

— 

10,500 

♦93.200 

+ 

■4,856 

18,501 

-^ 

5,299 

15.700 

— 

7,300 

18,089 

— 

11.585 

20,033 

+ 

1,205 

55.500 

+ 

28,900 

23.300 

— 

9,500 

45,000 

— 

11,009 

21,599 

— 

13.773 

4,400 

— 

7.929 

14,000 

— 

17.097 

61,866 

+ 

28,986 

100,000 

243.284 

98.203 

38,680 
41,500 
38,998 
1 18,567 

146,171 

531,568 
184,218 
292,460 

672,350 
59.548 

240,490 
93,200 

137.703 

82,500 

■99,378 

7^,400 

433.300 
88,400 

734.671 
80,751 

■47,700 
68,70c 

■94.130 


*  32,000 
22,518 

34.000 
12,723 

•30,404 

34,000 
53.343 
29,389 
50,819 
21,980 
12,626 
36,710 
32,123 
36,958 
14,270 
13,600 
22,564 
10,504 
23,536 
26,S8o 
121,023 

21,524 

48,972 
20,336 
'20,484 

98,532 
34.^56 
33.500 

134,000 
'75.300 
26,085 
61,000 
37.000 
16,600 
14.112 
15,000 
-44,920 
41,500 
20,899 
53,100 
18,000 
24,070 
29,050 

'24.739 
■7.800 
36,000 
■■.973 
32,562 

23,000 
*31.436 


—     5,000 

7 

311.000 

+     9.418 

3 

58,906 

+     3.00D 

3 

84.500 

—  14.924 

3 

70,984 

+   22,786 

2 

86,035 

—  ■5,000 

1 

■  30,000 

—  34.658 

3 

211,146 

-    8,967 

9 

329.  I4« 

+     5.504 

5 

268,739 

—  ■7.070 

3 

95.9I" 

-     1.074 

8 

■12,278 

-  15.725 

3 

142,1112 

—   ^4.930 

3 

189,994 

—   ^0,042 

3 

■69,797 

—     2,250 

■  2 

233,360 

—     1.726 

S 

■37,920 

—  ■3.9'6 

8 

323,630 

-     5,098 

12 

240,123 

-     8,064 

6 

244,331 

—     8,120 

9 

383,837 

-     6,349 

9 

1,289,830 

-     3,757 

3 

82,827 

—   ■ftoos 

3 

229,226 

—        507 

3 

76,087 

—     2,159 

2 

42,143 

—   i«,947 

2 

205,806 

—  18,297 

9 

435,3"* 

—        500 

9 

— 

—  82,333 

3 

385,0.-0 

+    11,500 

■  1 

— 

—  13.067 

3 

87,394 

+     3.000 

11 

651.395 

—     6,680 

9 

694,620 

—     i,Soo 

II 

23 ',480 

—  3.956 

9 

237.773 

—     3.>3^ 

3 

73.000 

-        310 

7 

383.960 

—   13.300 

3 

142,000 

—   17,000 

3 

120,047 

—    2^,400 

3 

203,700 

—  ■4.250 

9 

235,060 

—  20,733 

1 

122,«(i6 

—    8,150 

3 

98,530 

—        353 

2 

52,554 

-     5.139 

3 

67,036 

—  10,000 

1 

«46,9» 

—     3.064 

9 

144.879 

—   15.850 

3 

126,140 

—   16,500 

9 

375.024 

-        653 

2 

■■".776 

+ 

44.370 

— 

"7.597 

— 

1,500 

+ 

l,6«2 

— 

3,200 

^ 

12,842 

+ 

18,700 

+ 

38,383 

— 

16,301 

— 

9.337 

— 

24.970 

— 

■  7.7f9 

— 

■5.7"5 

+ 

86,  "30 

•+ 

8  oao 

+ 

18,772 

— 

14,101 

— 

10,592 

+ 

23,200 

— 

7.970 

+ 

17,610 

+ 

45.984 

+ 

■3,478 

_ 

33,o^3 

— 

11,325 

+ 

70,453 
3,767 

— 

67,590 

+ 

3.200 

— 

5.65' 

+ 

ll,ll5 

— 

9,216 

— 

78,35« 

+ 

24.41^ 

— 

19,112 

— 

6,924 

+ 

■  71,632 

— 

2,5eo 

f 

69324 

+ 

65,314 

+ 

I5,l2* 

+ 

810,434 

+ 

27,181 

+ 

21,5  0 

— 

7.  ■30 

+ 

6,070 

+ 

696 

— 

22,600 

+ 

■.973 

+ 

110,902 



11,059 

+ 

10,822 

817 

— 

3,9«« 

+ 

3,387 

— 

I3.5^9 

— 

44.332 

+ 

33.623 

+ 

7.69$ 

— 

18,501 

+ 

22,750 

+ 

158.850 

+ 

2,774 

— 

25,090 

+ 

14.856 

— 

I5,l6l 

+ 

1,700 

+ 

3.194 

+ 

8,325 

+ 

■  58,600 

— 

11,600 

-f 

■  ■8,504 

— 

9.444 

— 

■  1,001 

+ 

34.000 

<- 

99.58* 

+ 

9,000 

+ 

■7,505 

+ 

6,000 

+ 

10,124 

+ 

32,816 

— 

I9,o»o 

— 

43,976 

— 

44,332 

+ 

53,484 

— 

4.435 

+ 

32 

— 

■7.736 

— 

28,715 

— 

13,303 

+ 

61,670 

— 

1,816 

— 

8.864 

— 

38.148 

+ 

46,581 

+ 

5I.5S7 

+ 

129,017 

+ 

602 

+ 

30,624 

+ 

10,224 

— 

3.185 

— 

19,871 

— 

44.374 

- 

■36,I»^ 

-_ 

31.027 

+ 

81.163 

+ 

■38,310 

+ 

68,>6o 

+ 

32.193 

+ 

5.865 

+ 

68,120 

— 

25.300 

— 

3.612 

— 

23.500 

— 

22,500 

— 

41.189 

+ 

6,250 

+ 

1,852 

+ 

570 

+ 

1.700 

+ 

■5.07^ 

— 

19.671 

— 

45.779 

— 

406 

Tatpiog..     .. 

Tail  Ayer     .. 
Tatniang 
Tangs  a    Batu 
Tani;kah 
Tanj.    Malini. 
Tandjong 
Tangoel 
Tebrao  . .     , . 
Teekoy  ..     ..^ 
Telogoredjo  . 
TenomB'rneo 
Third  Mile  .. 
Trerndbye  . . 
Trolak  ..     .. 
Ulu  Raatau. . 
U.  SuaBetong 
U.  S«rdang  . . 
U .  Sumatra . . 
U.  Temiang.. 
Uva       . .     . . 
Vai  d'Or 
Victoria 
Windsor 
WoodcQd 
Yam  Seng    . . 
Yatlyantota  . . 


700,000 

/10.29 

29,855 

1,080,000 

1/0.2$ 

24,450 

— 

— 

34,9)1 

172,569a 

1/3.59 

9,I0S 

530,000 

1/641 

3^,363 

1,400,000 

1/S.50 

70,290 

1,595,000 

1/3. "8 

83,033 

308,000 

■/■i 

38,500 

1,046,480 

1/10.70 

79,906 

230,000 

1/3.12 

•18,930 

8^4,0200 



97,000 

479,840 

/11.98 

40,000 

198,8350 

— 

18,687 

750,000 

'/0.54 

17,000 

285,500 

l/2i 

23,458 

285,066a 

I/I. 16 

18,265 

930,724a 

1/1.15 

32,310 

3,395,000 

1/3.96 

203,872 

991,7000 

1/073 

67,030 

8Oj,00O 

■/5.80 

30,213 

185,692a 

11,665 

360,000 

— 

12,000 

250,000 

■/4.49 

14,450 

404,aooa 

1/4. 10 

18,500 

256,772a 

2,583 

— 

— 

18,520 

520,8230 

— 

■5,335 

—  24,406 

—  45,a«9 

—  "2,937 

—  4904 

—  4,578 

—  33,660 

—  19,196 
f  10,926 
+  23,135 
f  6,619 
+  27,580 

—  8,500 
+  7,887 

—  37,500 

—  2,156 

—  5,092 

—  37,150 

—  65,697 
9.780 

—  18,357 

—  2,734 
II,.iOO 

-I-    3,250 

9,749 
■0,743 

—  11,926 

■4.850 


315r 

84«, 
418, 
38 
262, 
1,087, 
944. 
257, 
397. 
174. 
261, 
146, 

'I' 
478, 
168, 

68, 

■35, 

■  ,734 

239i 

494, 

<9, 
104. 
206, 

87, 

31 
165, 

84 


,364 
147 

038 
361 

,O20 

3«" 

252 

536 
566 

000 
000 

987 

,200 

,822 

■70 

,820 
,3>4 

,910 
.443 
,■31 
,050 
,386 
400 

.371 
,273 
288 


59.770 

97.753 

70,018 

6,047 

50,073 

201,960 

102,236 

53.606 

122,847 

7.497 

65,9(0 

3.600 

37.352 

63.800 

474 

■,031 

61,877 

223.665 

9.250 

98.343 

7.538 

37.5  0 

84.386 

5.576 

4,018 

9.432 

640 


•  Latt  ytat'a  crop. 


*  For  February,  or  previous  month. 


The  Week  in  Minos. 

Ihe  war  situation  has  entirely  dominated  the  Mining  markets 
this  week.  Business,  except  in  a  few  specialities,  has  been  on  a 
very  small  scale,  and,  with  the  inclination  to  sell  more  apparent 
than  the  disposition  to  buy,  prices  have  drooped  in  all  depart- 
ments. Some  of  the  leading  Souith  African  shares  have  fallen 
rather  heavily,  and  Cornish  tin  shares,  which  have  been  more 
active  than  any  other,  failed  to  maintain  their  earlier  buoyancy. 
SOLTH    AXU    WkST    AlKICANS. 

In  the  South  African  market  the  tendency  was  dull  through- 
out, the  further  improvement  in  the  native  labour  position  fail- 
ing to  counteract  the  general  disinclination  to  support  the 
market.  New  Modderfonteins  have  been  on  sale  steadily,  and 
show  a  loss  of  a  full  point  at  21^.  Heriots  have  fallen  -^  to 
i^j,  Brakpans  J4  to  4^,  Modder  B's  ^  to  yji,  and  Central 
Minings  }i  to  5J,  while  losses  of  -^  are  fairly  general.  Springs 
Mines  are  -pg  lower  at  3/j.  It  is  now  officially  announced  that, 
in  return  for  the  facilities  to  be  granted  to  the  new  company  tu 
work  the  Western  Rietfontein  lease,  shareholders  of  the  Springs 
will  get  option  certificates,  in  the  proportion  of  one  for  every 
10  shares,  carrying  the  right  to  subscribe  for  shares  in  the  new 
company  at  22s.  6d.  for  a  period  ending  one  year  after  the 
war,  with  a  minimum  period  of  two  years.  The  shareholders 
will  also  receive,  as  a  bonus,  one  share  in  the  new  company 
for  every  10  shares  held.  Rhodesian  shares  show  a  general 
decline.  Tanganyikas  have  been  especially  weak,  and  are  -i^ 
lower  at  2f|,  while  Zanibesia  Explorings  have  fallen  2s.  -^d.  to 
203.  6d.  Chartereds  are  is.  lower  at  13s.  7jd.,  and  Lonely 
Reefs  IS.  6d.  down  at  3H.  Diamonds  and  West  Africans,  how- 
ever, have  been  fairly  steady. 

Copper  and    MiscEi.i.tNEOus. 

Copper  shares  have  not  escaped  from  the  general  depression. 
Hampdens  have  fallen  2s.  to  25s.,  Mount  Lyells  is..  6d.  to  26s., 
and  Arizonas  }i  to  2^.  Broken  Hills  have  been  on  offer,  includ- 
ing Proprietarys,  which  have  relapsed  J  to  3}-^,  British  Pro- 
prietarys,  which  are  5-32  lower  at  i  20-32,  and  Block  Tens, 
which  are  down  to  i  21-32.  Nigerian  Tin  shares  are  mostly 
lower,  with  Tin  Fields  of  Northern  Nigeria  back  to  7s.  3d. 
ex  dividend.  Cornish  Tin  shares  were  at  first  active  and  very 
buoyant.  South  ("roftys  advanced  to  57s.  6d.  on  new.<i  that  the 
company  had  purchased  for  ;,<'2o,ooo  a  wolfram-bearing  pro- 
perty, known  as  the  Castle  Dinas  mine.  This  is  a  new  pro- 
perty, but  11,000  tons  of  ore  have  already  be-^n  exposed  on  it. 
Subsequently  profit-taking  was  resorted  to,  and  the  price  fell 
back  to  last  week's  level  of  50s.  Realisations  have  caused  East 
Pools  to  relapse  7-32  to  1  13-32,  and  Geevors  5-32  to  r  7-32. 
Among  Westralians,  Golden  Horseshoes  are  weaker  at  if|,  and 
Russian  descriptions  are  a  shade  lower.  Orovilles  have  re- 
acted to  17s.  6d.  In  the  Indian  section,  Burma  Corporations 
have  declined  -^  to  3?^,  and  Ooregums,  after  rising  to  20s.  on 
the  maintenance  of  the  dividend,  weakened  1-32  on  the  state- 
ment in  the  report  foreiihadowing  smaller  returns  in  future. 


MINING  NEWS. 


Transvaal  Gold  Proddchon. — The  production  of  gold  in 
March  amounted  to  ;f 2,957, 614,  ^  decrease  of  /385,749  on  the 
same  month  of  last  year.  The  following  table  shows  the  monthly 
production  since  January,  1913  : — 


Month. 

1913. 

1914. 

I9'5. 

19K6. 

■917. 

igit. 

January   .. 

3,353.116 

2,708,470 

3,037,058 

,344.948 

3,324.418 

3,033,633 

February . . 

3, ■'8,325 

2,660,186 

2,872,406 

3,201,063 

3,063,976 

2,802,477 

March  .... 

3.358,050 

2,917,346 

3,202,514 

3,384, ^2^ 

3.343.363 

2,957,614 

April     .... 

3.334,358 

2,904,924 

3,160,651 

3.205,643 

3.^33, "■ 

May 

3.373,998 

3.059.340 

3,243.347 

3.303.377 

3,310,618 

— 

fune 

3,173,382 

3,049.558 

8,208,224 

3.235.767 

3,227,101 

— 

July  

2,783,917 

3, ■■■,398 

3,272,238 

3.232,89^ 

3.219,094 

— 

August 

3,092,754 

3,024,037 

3.307.975 

3,318,116 

3,214,079 

— 

September 

2,999.686 

2,982,630 

3,299,423 

3,277,408 

3, ■35.837 

— 

October   .. 

3,05^,70^ 

3,"6,754 

3,388,122 

3,363.642 

3,^9',279 

— 

November 

1,660,788 

3,040,677 

3,317,534 

3.326,253 

3,070,426 

•- 

Oecember 

2,857,938 

2,952,755 

3.317.949 

3,289,705 

3,068,639 

— 

Total.. 

37,358,040 

35,588,075 

38,627,461 

39,484,934 

38,323.921 

8.793.744 

396 


Ube  3nve8toc8'  IRevtew. 


April  20,   1918. 


Native  Labodr  Returns. — A  further  improvement  is  skown  in 
the  laboar  supply.  The  total  shows  an  increase  of  1,742,  the  gold 
mines  getting  i.gfiq  more  labourers.  


Month. 


March,  if  17 — 
April 

ilif  

June  

July    

August 

September  ... 

October 

November  . . . 
Decenilier  . . . 
January,  1918. 

February  

March    


Natives 
on  Gold 
mines. 


iWiOiS 
"5.9-73 
180,168 
•75,727 
171,653 
170,817 
171,334 
170,331 
169,083 
172,740 
176,424 
181,066 
183.055 


Nativts 
on  Coal 
mine*. 


",435 

II.4J* 

11,358 
ii,3»" 
11,401 
11,601 
11,841 
I ',633 
11,695 
11,469 
ll>»43 
11,076 


Natives 

on 

Diamond 

Mines. 


Total 
natives. 


<,6to 
«.3i4 
5.805 
5>36« 

5,»»3 
5,028 
4,791 
4,620 
4,620 
4.593 
4.7"5 
4.«25 


308,142 

203,724 
•97,405 
»9«,354 
l«8,J57 
187,146 
187726 
186,792 
185,336 
189,026 
192,608 
197.  n4 
198,876 


Durban  Roodepoort  Deep. — This  mine  did  very  well  in 
191 7.  The  tonnagie  milLed  was  3i3>85o,  as  compared'  with 
319,800.  The  yield  iper  ton  rose  from  25®.  iid.  to  27s.  9d.,  and 
the  worioing  profit  from  2s.  7d.  to  3s..  id.  per  ton.  The  nett 
profit  advanced  from  ;^37,558  to  ^£46,344,  and  the  dividend  was 
raised  from  2 J  .to  5  per  cent.,  leaving  ;^ 79,888,  of  which  ;^32,i86 
is  leipresented  by  cash  and  investments,  to  be  carried  forward, 
against.  .;f 59,775.  Capital  expenditure  absorbed  only  £2,-)i!\. 
Payable  ore  developed  amounted  to  245,000  tons,  valued  at 
6.3  d'Wits.,  tout  the  ore  reserves  have  decreased  from  1,259,300 
tons  to  1,174,200,  valued  at  6.5  dwts.,  as  against  6.3  dwts.  at 
t]h»?  end  oi  1916.  Development  operations  were  somewhat  cur- 
tailed:. The  increase  in  profit  was  due  to  a  better  yield  and 
to  slightly  improved  sorting. 

Tharsis  Sulphur  and  Copper. — The  report  for  1917  shows 
that  the  profiits  decreased  by  ;f4i,o7i  to  ;^i58,o78.  The  divi- 
dend is  ireduccd  from  15  to  125  per  cent.,  free  of  tax,  but  the 
carry  forward  is  raised  from  ;f 25,911  to  £2-j,-jt,().  The  amounts 
written  off  total  ^{^30,741,  against  ^{^23,515.  Additions  to  works 
property  accounts  amounted  to  .£29,913,  but  as  ;£i7,643  is 
written  off  for  depreciation,  the  nett  addition  is  ;£i2,27o.  Re- 
fined copper  produced  am^ounled  to  4,066  tons,  an  increas<. 
of  354  tons. 

Mason  and  Barry. — The  accounts  for  1917  show  that  the 
decrease  in  profits  was  more  marked  than  the  reduction  in  the 
dividend  from  45  per  cent,  to  10  per  cent,  had  indicated.  The 
total  was  j^i8,499  against  ;£99,i66,  and,  after  allowing  for  the 
dividend,  the  carry  forward  is  Teduced  from  ;£36,i37  to  ;£35,i2o. 
It  appears  that  the  quantity  of  ore  broken  and  raised  at  the 
mine  was  154,762  tons,  against  193,127  tons  in  1916,  while  the 
shipments  declined  from  202,176  tons  to  43,529  tons.  The 
average  market  price  of  standard  copper  was  ;^I25  2s.  5d.  per 
ton,  against  £iif>  is.  3d.  per  ton  in  1916.  The  serious  diminu- 
tion in  shipments  was  due  to  the  shortage  of  tonnage.  This 
shortage  continued  to  the  close  of  the  year,  and,  being  co- 
incident with  a  heavy  increase  in  costs,  <the  revenue  and  profit 
were  substantially  diminished. 

Modderfontein  B. — A  cabled  sunianary  of  the  report  for 
1917  shows  that  the  nett  pirofit  decreased  by  ;j5,o47  to  ;^709,6oo, 
as  a  resulit  of  a  reduction  in  the  tonnage  milled.  This 
amounted  to  517,500  tons,  against  543,700.  The  yield  rose  from 
43s.  2d.  to  46s.  2d.  per  ton.  Working  costs  averaged  19s.  5d., 
as  compared  with  17s.  lod.,  and  the  working  profit  was  thus 
IS.  5d.  higher  at  26s.  9d.  per  ton.  Capital  expenditure  was 
;£9i,824,  against  ^f  18,093.  Dividends  amounting  to  85  per 
cent,  were  declared  during  the  year,  as  against  774  per  cent. 
in  1916,  and  the  carry  forward  is  reduced  from  ;£3o6,297  to 
;f246,569.  Owing  to  insufficient  labour  supply,  the  rediuction 
plant  was  never  operated  at  its  full  capacity.  Work  on  the 
extension  of  the  plant  is  proceeding,  nevertheless,  and  its  com- 
pletion is  expected  within  four  to  five  months  at  an  additional 
cost  of  ;£40,829.  The  plant  will  then  have  a  capacity  of 
60,000  tons  monthly.  The  underground  position  seems  quite 
saitisfactory.  Payable  tonnage  developed  during  the  year 
amounted  to  660,000  tons  of  a  value  of  lo  dwts.,  and  the  ore 
reserves  now  lamount  to  3,523,810  tons,  valued  at  9.2  dwts.,  as 
against  3,371,950  tons  at  the  close  of  igi6. 

Knight  Central.— During  1917  there  were  milled  315,900 
tons  for  an  average  yield  of  20s.  gd.  Working  costs  were 
20s.  6d.  per  ton,  and  the  working  profit  3d.  per  ton  against 
IS.  5d.  per  ton.  Reserves  of  ore  now  amount  to  280,800  tons, 
valued  at  5.86  dwts.  Values  south  of  the  dyke  are  still  found 
in  patches  only,  and  the  recent  work  gives  but  small-  en- 
couragement. The  nett  profit  was  reduced  from  ;S23,205  to 
,i£4,i89,  and  the  carry  forward  is  reduced  from  ;£io6,968  to 
;£io3>&36-  Development  work  from  the  West  shaft  has  almost 
ceased.  The  amount  of  ore  in  reserve  seems  sufficient  for  a 
year's  working,  but  in  view  of  the  diminishing  number  of  stope 
faces,  and  the  increased  cost  of  working,  a  cessation  of  opera- 
tion®— which,  in  accordance  with  the  policy  decided  upon  a 
year  ago,  wilj  occur  when  they  cease  to  be  profitable — ^may  be 
necessitated  before  the   ore  reserves  are  exhausted. 

WtTWATERSRAND  Deep.— The  report  of  this  company  for  1917 
is  also  a  very  gloomy  document.  It  shows  that  the  nett  profit 
declined  from  £160,282  to  £63,079.  The  dividend  is  reduced 
from  22i  to  5  per  cent.,  but  the  carry  forward  is  £99,355, 
agaiBst  £81,025.  The  tonnage  milled  was  425,500  against 
500,250,  and  the  yield  was  ;£i  3s.  7d.  per  ton  against  ;£i  3s.  gd. 
Working  cixsts  rose  from  17s.  4d.  to  20s.  7d.,  and  the  working 
profit  W.1S  consequently  reduced  from  6s.   4d.   to   3s.    per  ton. 


Reserves  of  ore  have  been  further  reduced  from  1,571,300  ton- 
to  1,383,359  tons,  and  the  value  is  5.66  dwts.  against  5.79  dwts. 
per  ton.  Only  230,155  tons  of  payable  ore  were  developed 
during  the  year.  The  direotors  state  that  owing  to  the  low 
grade  of  the  reserves,  the  high  level  of  working  costs,  and  the 
abnormal  expenditure  to  be  incurred,  the  outlook  for  the  imme 
diate  future  is  "  extn.mcly  bad."  In  order  to  earn  a  nominal 
profit  it  is  imperative  that  a  larger  rate  of  crushing  must  be 
obtained,  which  largely  depends  on  the  supply  of  nativi- 
labour.  Future  prospei'ity  of  the  mine  is  entirely  depeiuleiyt  on 
the  values  in  the  deeper  ground. 

Rose  Deep. — The  report  for  1917  shows  a  nett  prc^t  c-l 
£256,300,  against  ;£2i9,932  for  1916.  The  dividend  i»  raised 
from  26J  to  30  per  cent.,  and  the  balance  carried  forward  is 
^130,689  against  ;£i  11,027.  This  result  was  obtained  despite 
a  decrea.se  in  the  tonnage  milled  of  98,700,  the  total  being 
685,900.  The  yield,  however,  was  appreciably  higher  at  24s.  5d. 
per  ton,  comparing  with  228.  iid.  in  1916.  Costs  were  actually 
reduced  by  4d.  to  169.  iid, ,  and  the  woiiting  profit  was  is.  lod. 
higher,  therefore,  at  7s.  6d.  per  tdh,  which  compares  witii 
7s.  id.  in  1915.  Reserves  of  ore  have  decrea.sed  from  3,067,280 
tp  3,219,700  tons,  but  the  vaJue  is  5.4  against  5.3  dwts. 


Tea,  Oil  and  Rubber. 


It  is  becoming  more  and  more  evident  that  the  decision  of  the 
Rubber  Growers'  Association  to  attempt  to  restrict  production 
was  really  a  counsel  of  despair.  The  supporters  of  the  movement 
are  paying  the  penalty  for  undue  optimism  in  the  past,  and 
some  of  them,  at  any  rate,  have  to  try  to  i«concile  the  present 
position  with  the  exaggerated  hopes  which  they  helped  to 
engender  until  a  few  months  ago.  All  the  talk  then  was  that 
there  would  be  a  famine  in  the  commodity  presently,  and  that 
the  price  would  go  to  5s.  or  more.  When  it  would  not  budge 
beyond  2s.  6d.  they  conclusively  proved  that  something  must 
be  wrong — that  only  a  little  more  patience  was  necessary— 
because  rubber  is  almost  the  only  important  article  that  has  not 
advanced  in  price  since  the  war.  And  if  it  would  not  go  up  of 
its  own  accord  they  would  "  jolly  well  "  make  it  I  We  suppose 
these  good  people  never  stopped  to  think  what  it  really  means  to 
try  to  control  an  almost  world-wide  commodity  which  grows  '. 
The  Chicago  pit's  efforts  at  odd  times  to  corner  wheat  were  a 
child's  game  to  what  the  Rubber  Association  undertook  when 
it  attempted  to  regulate  the  price  of  rubber  with  power  over 
about  one-third  of  the  plantation  output,  and  much  less  than 
one-fourth  of  the  world's  production.  But  we  do  not  recall  thai 
"  young  Mr.  Leiter  "  or  other  heroes  of  the  pit  ever  sue 
ceeded  for  very  long  in  taking  tribute  from  all  the  rest  of  the 
world,  and  where  they  failed  we  are  extremely  doubtful  whether 
the  Rubber  Association  can  triumph.  Anyhow,  the  facts  appea; 
to  be  against  them  for  the  moment.  Even  last  week  more  rubbc; 
was  landed  than  delivered,  and  the  stocks  disclosed  stand  at 
15,150  tons  against  10,490  tons  a  year  ago.  And  here  are  th<: 
figures  of  imports  and  exports  extracted  from  the  Board  of 
Trade    returns  for   March  : — 


iMarch. 

Three  Montis. 

IQ17. 

1918. 

1917. 

igit 

Imports  (centals  of  100  lbs.) 
Exports        „ 

199.439 
95.405 

61,660 

41.777 

541.742 
369.044 

371.195 
107.389 

Retained      ,,            ,, 

104,034 

19,883 

172,698 

263,806 

Last  month  certainly  looks  favourable  to  the  bulls,  but  for 
the  quarter  it  will  be  seen  that  we  have  retained  90,000  centals 
more  than  in  the  corresponding  period  last  year.  Meantime, 
alas  !  dividends  are  being  cut  down  or  passed,  and  the  punter's 
patience  is  not  inexhaustible. 


Ans>ver8  to  Coppespondents. 

Sam. — Not  attractive  at  the  price.  What  will  the  metal  sell 
at  after  the  war  ? 

R.  L.  E. — Possibly.  The  company  is  a  marvel.  But  we 
should  not  be  tempted. 

Bargains. — (1)  Dear  enough.  What  about  Dyes?  (2)  Quite 
good,  but  full  value.  (3)  As  yet  very  speculative,  but  with 
chances.  (4)  Good  property,  but  business  rather  on  the  down 
grade. 

K.  K. — There  is  a  chance  of  further  improvement,  so  you 
might  hold  on  still. 

I,.  I.  M. — (i)  No,  leave  them  alone.  (2)  Quite  a  fair  invest- 
ment of  its  class.     The  business   is  well   managed. 

Lasso. — We  think  not.  The  company  has  been  grossly  mis- 
managed, but  it  ought  to  be  possible  to  pull  it  round,  and 
some  efforts  are  being  made  to  do  so. 

.'\.  G.    M.— Better  to  wait. 

D.  E.  F. — The  position  is  not  happy,  but  we  do  not  think 
the  dividend  will  be  passed.  Cannot  advise  selling  at  present 
price. 

J.  S.  A. — The  Budget  may  affect  the  market,  otherwise  (i) 
and  (2)  seem  worth  buying ;  (3)  is  rather  speculative ;  (4)  also, 
but  there  are  possibilities  after  the  war  if  you  are  prepared 
to  wait. 

C.  E.  S. — We  see  no  necessity  to  .sell.  The  company  is  quite 
strong  and  the  interest  safe.  Rise  in  value  is,  we  fear,  not  to 
be  expected  at  present. 

Mere. — If  you  intend  holding  permanently,  the  5 -per  cent, 
are  the  more  attractive. 


April  20,  1918. 


tlbe  Jnveetore*  IReview. 


397 


COMPANY  MEETINGS. 


CANADA  STEAMSHIP  LINES,  LTD. 

PROSPECTS   OF    A    LARGE    GRAIN    HARVEST. 

The  fourth  annual  meeting  of  the  Canada  Steamship  Lines, 
Ltd.,  was  held  in  Montreal  on  March  5th  last,  Mr.  James 
Carruthers,  president  of  the  company,   presiding. 

In  moving  the  adoption  of  the  report  and  accounts,  Mr. 
Carruthers  referred  briefly  to  the  operations  during  1917,  and 
stated  that  the  first  mortgage  bonds  outstanding  had  been 
reduced  by  about  $goo,ooo  since  the  last  report.  He  added 
that  the  directors  had  sold  and  bought  a  number  of  vessel.^ 
during  the  year,  their  object  being  (and  they  had  been  success- 
ful so  far)  to  re-establish  the  fleet  on  a  more  modern  basis 
to  meet  changing  conditions.  As  to  future  prospects,  he  addeti 
that  the  losses  in  ocean  tonnage  suffered  by  all  nations  would 
take  a  long  time  to  replace.  He  felt,  therefore,  warranted  in 
saying  that  in  all  probability  present  rates  would  continue 
until  the  available  tonnage  became  sufficient  to  meet  at  least 
normal  conditions,  which,  in  his  opinion,  so  far  as  the  shipping 
trade  is  concerned,  would  not  return  for  years.  He  had  every 
reason  to  expect  a  large  increase  in  the  acreage  of  grain  in 
the  Canadian  North-West  during  the  coming  season.  The 
enormous  shortage  of  foodstuffs  the  world  over  and  the  know- 
ledge that,  even  if  peace  were  declared  within  six  months,  the 
urgent  requirements  would  continue,  should  lead  to  the  con- 
tinuance of  high  prices  for  all  kinds  of  grain  for  some  time  to 
come,  so  that  there  is  every  incentive  to  the  farmer  to  put  every 
acre  possible  under  cultivation.  With  the  large  grain-carrying 
fleet  which  this  company  has  on  the  Upper  Lakes,  shareholders 
can  understand  what  a  big  difference  it  makes  to  the  company 
if  crops  in  the  Canadian  North-West  be  large  or  small. 

The  Fleet. 

Mr.  J.  W.  Norcross,  the  vice-president  and  managing  direc- 
tor of  the  company,  in  seconding  the  resolution  for  the  adop- 
tion of  the  report,  mentioned  that  some  of  the  older  and  more 
obsolete  ships  had  been  sold,  and  replaced  by  modern  tonnage. 
While  it  is  true  that  a  number  of  smaller  vessels  of  the  com- 
pany had  been  taken  from  the  Great  Lakes  for  the  ocean  ser- 
vice, the  lake  fleet  has  been  augmented  by  larger  ships,  which 
can  be  more  easily  and  cheaply  operated.  The  ocean  fleet  has 
been  increased,  and  is  operating  successfully  in  different  parts 
of  the  world.  All  losses  were  fully  covered  by  insurance  to  the 
extent  of  replacement  values. 

The  report  and  accounts  were  unanimously  adopted,  and  the 
board  of  directors,  as  well  as  the  London  advisory  committee, 
were  also  unanimously  re-elected. 


W.  T.  HENLEY'S  TELEGRAPH  WORKS. 

The  thirty-ninth  ordinary  general  meeting  of  W.  T.  Henley's 
Telegraph  Works  Co.,  Ltd.,  was  held  on  Friday  at  13  and  14, 
Blomfield  Street,  London  Wall,  E.C.,  Mr.  George  Sutton 
(chairman  and  managing  director)  presiding. 

The  Secretary  (Mr.  A.  E.  Salmon)  read  the  notice  convening 
the  meeting,  and  Mr.  Cornish  read  the  report  of  his  firm,  the 
auditors,   Messrs.    Ball,   Baker,   Cornish   and  Co. 

The  Chairman  observed  that,  as  he  said  last  year — and  in  the 
meantime  there  had  been  no  change  except  for  the  worse — the 
commercial  business  had  declined,  and  he  supposed  that  95  per 
cent,  of  the  work  they  did  was  in  connection  with  the  war. 
The  amount  of  debtors  was  about  normal,  and  the  large  sum  of 
;f299,ooo  represented  cash,  to  the  investment  of  which  he  had 
already  referred.  In  profit  and  loss  account  the  amount  pro- 
vided for  depreciation  of  machinery,  ^66,000,  was  the  largest 
sum  that  had  ever  been  put  to  this  purpose.  It  was  necessarily 
large  because  a  great  deal  of  the  extra  machinery  installed  for 
national  work  would  be  of  problematical  value  after  the  war, 
and  the  cost  had  therefore  been  charged  to  revenue  as  the  only 
safe  course.  Income-tax  was  charged  in  profit  and  loss  general 
account,  instead  of  profit  and  loss  account,  at  the  request  of  the 
auditors  ;  and  the  figure  of  ^28,000  did  not  represent  the  total 
amount  paid  under  this  head.  They  must  add  to  it  the  amount 
deducted  in  the  payment  of  dividends,  about  ^f  16,000,  making 
the  total  income-tax  payment  ;^44,ooo.  The  nett  profit  for  the 
year  amounted  to  jf  162,867,  and,  with  the  balance  brought 
forward,  ;if232,597  was  available,  which  it  was  proposed  to 
deal  with  as  shown  in  the  report.  A  balance  of  ;^i  12,000  would 
be  left  to  be  carried  forward  to  the  new  year  after  making  all 
reasonable  provision  for  contingencies,  and  notably  for  special 
taxation.  Looking  back  to  the  position  as  it  was  before  the  year 
1914  and  to  the  progress  made  by  the  company,  it  was  his  view 
that  the  profit  shown  was  no  larger  than  it  would  have  been 
if  no  war  had  occurred  and  tBe  company  had  had  no  war  work 
to  do.  Before  war  came  the  company  was  continually  making 
progress.  That  commercial  progress  had  been  stopped,  but 
they  hoped  to  regain  it.  The  volume  of  trade  after  the  war  was 
uncertain,  but  they  had  their  own  views  about  it.  For  a 
time  there  might  be  a  slackness  of  trade ;  things  must 
get  right  and  more  normal  before  there  was  much 
work      to       be      done;       but       however       that      might      be. 


they  did  know  that  the  means  of  output  in  the  .industry 
generally  had  increased  enormously,  and  it  might  well  happen 
that  after  the  war  those  means  of  output  would  be  greater  than 
the  increased  trade  which  eventually  would  come,  because  of 
the  stoppage  of  the  world's  work  for  so  long  a  period.  In  deal- 
ing with  profits  he  might  refer  again  to  the  offer  made  by 
the  company  to  the  Government  at  the  outbreak  of  war  in  1914. 
They  then  offered  to  place  at  the  service  of  the  Government 
the  entire  resources  of  the  company,  leaving  entirely  at  the 
discretion  and  judgment  of  the  Government  the  questions  of  the 
payment  to  be  made  for  costs  and  profits.  He  recalled  that 
declaration  in  order  to  emphasise  the  fact  that  they  were  not 
profiteers  in  the  bad  sense  of  the  word.  Every  trader  traded  to 
make  profits.  The  percentage  of  profit  to  turnover  depended 
upon  the  traders'  power  to  sell,  and  his  object  was  ever  to 
regulate  his  profits  so  that  he  did  not  decrease  his  sales.  If  the 
rate  of  profit  were  too  high  sales  would  inevitably  diminish,  and 
he  (the  speaker)  would  not  expect  ever  to  come  before  the  share- 
holders to  apologise  for  too  wide  a  margin  of  profit.  The 
average  ratio  of  profit  to  turnover  in  this  business  during  the 
war  was,  in  fact,  lower  than  it  was  prior  to  the  war,  which  was 
convincing  proof  that  they  were  not  profiteers  in  any  sen^. 
Future  taxation  must  be  very  heavy,  and  they  must  suppose 
that  the  Government  would  be  careful  how  far  industries  were 
burdened  with  heavy  taxation  after  the  war.  This  company 
had  accumulate3  large  undivided  profits  which  had  been  used 
to  build  up  and  equip  new  factories,  employing  large  numbers 
of  hands.  Capital  and  labour  alike  were  concerned  to  make 
sure  that  after  the  war  no  undue  burden  of  taxation  was  put 
directly  upon  the  industries  of  the  country.  He  had  no  in- 
clination at  the  meeting  to  criticise  the  Government  control  of 
the  business.  They  recognised  that  a  certain  measure  of  control 
must  be  exercised  in  war  time.  But  he  and  other  business 
people  were  glad  that  the  President  of  the  Board  of  Trade  had 
stated,  and  repeated,  that  "he  could  not  conceive  of  anyone 
desiring  in  the  n  itional  interests  that  the  industrial  interests  of  the 
country  should  be  controlled  a  day  longer  than  was  necessary." 
With  that  view  he  agreed.  He  had  had  prepared  an  interesting 
statement  showing  the  relationship  between  wages,  taxation  and 
dividends  paid  by  the  company.  In  the  past  year  just  over 
;^2oo,ooo  was  paid  in  wages,  and  a  similar  amount  in  taxation, 
and  the  dividends  amounted  to  ^59,000,  the  capital  employed'^in 
earning  these  sums  being  roundly  ;^i, 500,000,  so  that  the  capital 
was  not  taking  an  undue  proportion  of  the  amount  earned  by 
the  business.  Undivided  profits  had  been  used  in  trading  with 
success,  and  it  was  proposed  to  create  ;^2oo,ooo  of  ordinary 
shares  to  be  distributed  amongst  the  ordinary  shareholders, 
share  for  share.  It  would  be  done  without  injuring  in  any  way 
the  financial  strength  of  the  company.  At  the  same  time  it  was 
proposed  to  divide  each  £^  ordinary  share  into  five  ordinary 
shares  of  £1  each.  Further,  the  proprietors  were  asked  to  pass 
a  resolution  approving  the  directors'  proposal  to  make  the  tyre 
department  a  separate  entity.  Word  had  just  been  received 
that  Tieasury  consent  to  this  change  was  refused.  He  did  not 
know  the  grounds  of  the  refusal,  and  he  could  not  understand 
that  there  could  be  any  substantial  grounds  for  it.  They 
were  not  proposing  to  raise  any  money.  The  direc-' 
tors  would  endeavour  to  get  the  refusal  of  the  Treasury  altered. 
He  did  not  think  there  would  be  any  diflSculty  in  running  the 
tvre  business  exactly  as  if  it  were  a  separate  company,  and, 
eventually  the  new  company  could  be  proceeded  with.  In  the 
meantime  he  asked  the  shareholders  to  pass  the  resolutions  of 
which  notice  had  been  given.  He  moved  the  adoption  of  the 
report  and  accourrts.  Mr.  Sydney  Gedge,  M.A.,  seconded  the 
motion,  which  was  unanimously  adopted.  ■  ■.      ;" 

The  special  resolution  referred  to  in  the  chairman's  speech  was" 
unanimouslv  adopted,  and  the  proceedings  concluded^  with  a 
vote  of  thanks  to  Mr.  Sutton  for  his  conduct  in  the  chair. 

OCEAN    ACO.IDPMT    ANH    GUARANTEE 
CORPORATION. 

The  annual  general  meeting  of  the  Ocean  Accident  and 
Guarantee  Corporation,  Ltd.,  was  held  on  Tuesday  at  the  offices, 
36  to  44,  Moorgate  Street,  Mr.  E.  Roger  Owen  (the  chairman) 
presiding. 

The  Manager  and  Secretary  (Mr.  T.  M.  E.  Armstrong)  having 
read  the  notice  calling  the  meeting  and  the  report  of  the 
auditors, 

The  Chairman  said  :  Gentlemen, — The  report  and  accounts- 
before  you  show  that  we  have  had  another  very  busy  year,  not- 
withstanding the  gloom  and  anxiety  which  hangs  upon  our. 
country.  It  seems  to  be  a  fact  that  when  things  are  critical  and 
the  future  uncertain,  insurance  is  needed  by  the  public  more  than 
at  any  other  time.  The  revenue  amounted  to  ;if  3,304,091,  as 
against  ;^2,628,044.  The  premiums,  less  reinsurances  and  bonus 
to  assured,  amounted  to  ;f 3, 160,449,  as,  against  ^f 2, 505, 182. 
This  is  an  increase  of  ;f655,267.  It  is  the  largest  increase  we 
have  ever  shown,  and  it  is  derived  chiefly  from  America, 
although  I  am  glad  to  say  that  all  the  departments,  and  especi- 
ally the  English  business,  show  healthy  advances.  We  as  a 
board  do  not  attach  any  great  importance  to  a  mere  increase 
of  income.  True,  it  indicates  enterprise,  but  unless  the  business 
has  been  well  selected,  so  that  when  all  the  claims  and  expenses 
are  paid  there  is  an  underwriting  profit,  it  is  not  a  satisfactory 
feature.  We  have  every  reason  to  think  and  to  hope  that  the 
large  new  business  which  we  have  done  is  of  a  proper  kind  and 
will  prove  profitable.  The  claims  paid  and  to  be  paid  amounted 
to  ^^1,649.327,  as  against  ;f  1,269,131 — that  is,  52.1  per  cent,  on 
the  written  income,  or  55.2  per  cent,  on  the  earned 
income.     The     amount     paid      for,    commission,    to     agents 


39^ 


Zhc  investors*  Ifteview, 


April  20,  1918. 


is  ^,^560,092 — 17.7  per  cent.— and  the  amount  paid  for  expenses 
of  management  is  ^400,^86—12.7  per  cent. — as  against  14.4  for 
the  year  1916,  an  improvemdnt  of  1.7  per  cent.  The  item  for 
taxes  is  again  very  heavy.  The  amount  shown  in  the  revenue 
account  is  ;<^i24,2i3 — that  is,  3.9  per  cent,  of  the  entire  revenue 
of  the  corporation,  but  this  is  not  all.  The  amount  of  tax  de- 
ducted at  the  source  was  ^19,446,  and  we  have  yet  some  ;^'8o,ooo 
to  pay  in  excess  profits  duties,  so  that  in  all  this  corporation 
will  have  contributed  the  sum  of  ^223,659  as  the  result  of  their 
operations  .  But  large  though  this  sum  is,  it  is  not  enough  to 
maintain  the  British  proportion  of  the  war  for  an  hour.  Our 
total  assets  amount  to  ^^4, 898, 952.  This  is  an  increase  of 
^^771,000  on  the  previous  year's  figures.  As  regards  deprecia- 
tion, the  nett  amount  required  in  excess  of  the  amount  already 
reserved  was  ^1,992,  but  we  have  decided  to  make  a  larger  con- 
tribution to  the  investment  reserve  and  general  contingency 
fund,  thus  building  that  fund  up  to  the  round  figure  of 
;/^285,ooo,  a  sum  which  is  more  than  enough,  we  hope,  to  cover 
all  contingencies.  Your  directors  and  your  officials  are  every- 
one of  them  doing  their  utmost  to  manage  the  affairs  of  the 
corporation,  so  that  even  in  these  critical  times  we  may  give  our 
policyholders,  who  are  more  than  ever  dependent  on  the  pro- 
tection given  by  insurance  offices,  full  security  for  the  contracts 
which  they  have  placed  with  us.  We  hope  that  when  the  war 
comes  to  an  end  this  corporation  will  emerge  from  the  ordeal 
with  its  reputation  untarnished,  its  efficiency  unquestioned,  and 
its  financial  stability  beyond  reproach.  Before  closing,  I  must 
tell  you  that  up  to  the  present  time  542  of  our  officials  have 
joined  his  Majesty's  Forces,  and  that  the  casualties  which  I 
announced  to  you  last  year  as  amounting  to  82  have  since  grown 
to  128,  of  which  60  are  fatal.  Many  of  our  men  have  achieved 
notable  feats,  both  of  arms  and  courage.  A  number  of  them 
have  received  decorations  from  the  Crown,  and  we  are  proud  of 
the  part  which  one  and  all  of  them  have  taken.  I  beg  to  move 
the  adoption  of  the  report. 

Sir  Clarence  Smith,  J. P.  :  Just  as  it  must  have  been  extremely 
satisfactory  to  you,  Mr.  Chairman,  to  move  the  adoption  of  such 
a  report,  it  must  be  satisfactory  to  anyone  called  upon  to  second 
it.  While  you  have  been  expounding  the  figures  I  have  been 
thinking  what  have  been  the  causes  which  have  led  to  the  really 
•  phenomenal  increase  in  the  prosperity  of  this  company  during 
the  last  few  years — almost  the  Unexampled  prosperity  which  we 
have  experienced.  No  doubt  there  are  many  causes — the  stability 
of  the  company  and  the  liberality  with  which  we  treat  our 
clients.  But,  as  you  intimated,  it  is  not  mere  income  which 
will  satisfy  us ;  it  is  an  increase  in  the  profits  which  we  desire. 
There  is  one  cause  which  seems  to  me  to  have  led  to  a  con- 
siderable increase  in  our  prosperity  in  this  direction  which 
perhaps  may  not  occur  to  everyone  in  the  room,  and  that  is — 
you  know  it  very  well,  of  course — the  fact  that  during  the  last 
few  years  we  have  conferred  a  greater  responsibility  and  some 
practical  freedom  upon  our  underwriters  with  regard  to  their 
duties.  You  know  that  formerly,  until  within  a  few  years  ago, 
the  board  was  its  own  underwriter.  All  important  cases  used  to 
come  before  the  board,  and  1  can  remember  very  well  many 
cases  in  which  we  have  overridden  the  views  and  desires  of  our 
underwriters  and  heads  of  departments.  Well,  all  that  has  been 
changed,  and  I  think  the  fact  that  we  have  put  the  responsibility 
and  freedom  to  act  upon  those  who  are  experts  and  really  know 
much  more  about  it  than  the  board  can  possibly  do,  may  have 
had  not  a  little  effect  in  bringing  about  the  increased  prosperity 
of  the  company. 
The  resolution  was  carried  unanimously. 


IRVINE'S  SHIPBUILDING  AND    DRY  DOCKS. 

The  ordinary  general  meeting  of  Irvine's  Shipbuilding  and 
Dry  Docks  Co.,  Ltd.,  was  held  on  Wednesday,  at  Winchester 
House,  Old  Broad  Street,  E.C.,  the  Right  Hon.  the  Viscount 
Furuess  (the  chairman)  presiding. 

The  Secretary  (Mr.  J.  T.  Harris)  read  the  notice  convening 
the  meeting  and  also  letters  from  Mr.  F.  W.  Lund  and  Mr.  P. 
Haig  Thomas,  two  of  the  directors,  expressing  regret  at  their 
inability  to  be  present.  The  auditors'  certificate  was  read  by 
Mr.   R.   T.   Warwick,  of   Messrs.    W.   T.    Walton  and    Son. 

The  Chairman  said  :  Your  directors  are  pleased  to  be  able 
to  present  a  balance-sheet  at  the  first  annual  general  meeting 
since  the  company  became  a  public  one,  which,  I  think,  having 
regard  to  all  the  difficult  circumstances  under  which  we  have 
had  to  work,  may  be  regarded  as  satisfactory.  The  nett  profits, 
including  the  balance  brought  forward  from  the  ffrevious  year, 
amount  to  ;f66,665  13s.  cd.  '  The  half-yearly  dividend  on  the 
preference  shares  was  paid  on  January  i,  1918,  leaving  an 
available  balance  of  ;^i;4,66!;  13s.  i;d.,  which  your  directors 
recommend  shall  be  appropriated  in  the  following  manner  ; — To 
pay  a  dividend  on  the  ordinary  shares  of  8  per  cent,  per  annum 
from  June  30  to  December  31,  1917,  less  income-tax,  ;,f88o  ;  to  pay  a 
final  dividend  on  the  preference  shares  of  is.  4d.  per  share,  less  in- 
tome-tax,  ;f  20,000 ;  to  pay  a  final  dividend  on  the  ordinary 
shares  of  10  lo-iid.  per  share,  less  income-tax,  ^20.000;  and  to 
place  to  credit  of  reserve  account  /c;,ooo,  leaving  to  carry  for- 
ward to  next  year's  accounts  ^^8,785  13s.  ^d.,  making  a'  total 
of  /■54.661;  13s.  5d.  As  both  the  shipyards  are  controlled  estab- 
lishments, having  been  brought  under  Government  regulations  in 
August,  roi5,  it  will  be  appreciated  that  the  building  policy 
of  the  company  is  to  a  very  large  extent  determined  bv  the 
Hovernment  authorities,  and  in  consequence  we  have  not  been 
free  to  concentrate  our  energies  upon  the  class  of  work  which 
we  would  consider  best  suited  to  our  yards.  During  the  past 
year  we  have  built  for  the  Admiralty  vessels  of  distinctive  tynes 
ihd  have  had  a  large  refrigerated  meat-carrying  vessel  under 


construction,  in  addition  to  an  oil  tanker,  cargo  liners  and 
standard  ships,  and  we  consider  that  this  variety  of  work  has 
acted  as  a  deterrent  to  the  best  results  of  output  being  obtained 
from  our  efforts.  The  .scarcity  of  suitable  labour  has  for  some 
time  caused  us  a  great  deal  of  anxiety,  but  the  Government  are 
now  alive  to  the  vital  necessity  of  releasing  as  many  skilled  men 
<is  possible  from  the  Army  to  reman  the  shipyards,  and  I  am 
ple-ised  to  say  that  we  are  gradually  filling  up  our  requirements. 
While  on  the  subject  of  labour  conditions,  it  is  very  pleasing  to 
notice  that  representatives  of  the  employers  and  workmen  on  the 
North-East  Coast  in  the  shipbuilding  and  allied  industries  have 
recently  passed  a  joint  resolution  stating  that  "the  industrial 
f.)rccs  in  the  North-East  Coast  ordnance,  shell  and  aviation 
shops,  engine  works,  shipyards  and  .ship-repairing  establish- 
ments assure  their  comrades  in  the  fighting  line  that  they  will 
do  everything  in  their  power  to  turn  out  in  increasing  numbers 
guns,  shells,  engines,  ships  and  other  munitions  of  war.  Em- 
ployers and  workmen  stand  shoulder  to  shoulder,  determined 
to  maintain  and  increase  their  efforts  until  complete  victory 
crowns  our  arms."  With  this  encouraging  spirit  animating 
our  shipyard  workers,  I,  for  one,  am  not  pessimistic,  and  T  feel 
sure  that  the  shipbuilding  industry  of  this  country  need  not  fear 
eclipse,  even  by  our  American  cousins,  who  are  putting  such 
tremendous  energy  into  the  vital  task  of  building  ships  in  the 
present  emergency.  With  the  object  of  bringing  our  plant  into 
the  highest  possible  state  of  efficiency,  and  so  that  the  available 
labour  may  be  utilised  to  the  greatest  advantage,  we  are  arrang- 
ing to  instal  the  plant  necessary  to  drive  the  whole  of  the 
machinery  at  our  harbour  yard  by  electricity.  As  to  the  future, 
the  r61e  of  prophet  is  a  thankless  one,  and  in  any  case  under 
existing  circumstances  the  future  is  hard  to  forecast.  I  can, 
however,  say  with  confidence  that  there  is  a  large  volume  of 
work  awaiting  the  shipbuilding  industry,  and  for  some  years 
to  come  it  is  certain  that  all  our  facilities  will  be  kept  fully 
occuDied. 

Mr.  Clarence  C.  Hatry  seconded  the  motion,  which  was  carried 
unanimously. 

LONDON   AND  THAMES    HAVEN   OIL 
WHARVES. 

The  2oth  ordinary  general  meeting  of  the  London  and 
Thames  Haven  Oil  Wharves  was  held  on  Tuesday,  at  the 
Baltic,  St.  Mary  Axe,  Sir  Owen  Philipps,  K.C.M.G.,  M.P., 
presiding. 

The  Secretary  (Mr.  T.  Clarkson  J.  Burgess)  read  the  notice 
convening  the  meeting. 

The   Chairman   said    that   it   was   a   gratification   to   him   to 
■  be  able  to  present  accounts  showing  so  satisfactory  and  sound 
a  position   after   nearly  four  years  of  war.     The  times  were  so 
difficult  at  present  that  it  was  almost  impossible  to  see   ahead 
from  day  to  day,  and  the  future,  more  than  at  any  other  time 
in  the  history  of  the  country,  was  impossible  to  forecast.     The 
profits   for    the   year    ended    December    31,    1917,  as   shown    in 
the  printed  accounts,   and  taken  in  comparison  with  those  for 
the  year  ended  December  31,  1916,  were  less  by  about  £iT,ooo, 
but    this     reduction     did     not     effect    the    stability    of    tlieir 
security ;    it   also  did  not   affect  their  dividend   or  their   divi- 
dend   prospect;    but   it   did    reduce,    he   regretted   to   say,    the 
amount   of   excess   profits   duty   which  the  company  contributed 
towards  the  country's  financial   necessities.     The  accounts  for 
the  years  1912  and   1913 — which  periods  were  immediately  pre- 
ceding   the   war — were    very    satisfactory,    and    enabled    them, 
after  providing  for  suitable  depreciation  of  the  assets,  to  place 
/io,ooo   to   reserve,   and    to  pay   8   per   cent,    per   annum   divi- 
dend.    If  they  looked   at  the  accounts  for  the  subsequent  years 
they   would   find  that,   besides   paying   excess   profits  duty  they 
had    been   in   a   position   to   do   rather   more  than   was   done   in 
the  years  1912   aijd    1913.     The  company  had   been   still  further 
consolidated ;  the  reserve  fund  had  been  largely  increased,  and 
considerable   sums  had   been   devoted  out  of  revenue  to   main- 
taining   in    a   state   of  efficiency   the  whole  of   the   company's 
works  and   plant.     They   had   expended   considerable   sums  on 
capital    account,    not   only   by   increasing    the    number   of   their 
storage  tanks,  but  also  by  providing  plants  for  the  treatment 
of  crude  oils  and   spirit,   which  had    rendered    invaluable   ser- 
vice to  the  nation  in  the  present  time  of  crisis.     Owing  to  the 
considerable  development  of  their  storage  capacitv  prior  to  the 
war,    which   only  came   into  use    in    1914    and    1915,    and    the 
development  of   practically  all   the   other   departments  of  their 
business,  their  profits  during  the  war  period  had  been  greater 
than  previously.     The  natural  development  had  placed  the  com- 
pany on    a  higher   level  of   earning  capacity.     There   was   no 
doubt   that    if    there    had    been    no   war    the   company's    profits 
would    have    steadily    expanded,   and    its    development    would 
have   continued.     There   was    a    great   deal   being    said   to-day 
on  the  production  of  petrol  and  motor  spirit  from  home  sources. 
This  was  no  new  subject.     These  questions  had  not  been  over- 
looked   by    busine.ss   people    in    the  past,   and    were    now   only 
what  might  be  called  popular  because  of  the  necessities  arising 
out  of  the  war.     Anv  help   they  could   render  to  the   solution 
of  this  problem  would  be  willingly  given,  but  in  any  case  he 
was  confident   that   a  great   impetus  would   take   place   in   the 
trades   for   which  they   catered,    and   that   after   the  war    thi.s 
company   would  not  only   hold   its   own,    but,   whilst   assisting 
others,   would,    he   hoped,    reap    its   share   of    reward    in   any 
further  developments  of  the  oil  industry. 

Mr.    Allan   McCall  seconded   the  motion,   which   was   unani- 
mously carried. 


April  20,  1918. 


Zbc  Jnvestocs'  IRevteW' 


399 


MAPPIN    AND    WEBB. 

The  ninth  annual  general  meeting  of  Mappin  and  Webb, 
Ltd.,  was  held  on  Monday  at  the  Ritz  Hotel,  Piccadilly,  W., 
Mr.    William  Harri.s,   chairman  of   the  company,   presiding. 

The  Chairman  said  the  large  increase  in   their  stock  was  a 
matter  for  congratulation.     Their  export  trade  and  supplies  to 
their  foreign  branches  had  been  considerably  handicapped,   not 
only  by  delays  in  manufacture,  but  also  by  Government  restric- 
tions and  prohibitions.     Owing  to  the  largely  increased  cost  of 
living   they  had   been  obliged   to  materially  increase  the  wages 
of  most  of  their  staff.    Very  considerable  munition  contracts  bad 
been  entered  into  during  the  year,  but  they  had   made  little  or 
no  profit  on  that  branch  of  their  business.     They  had,  however, 
the  satisfaction   of    feeling    that   the  company   had   helped   in 
munitions.      Considerable    contracts    for   hotels,   steamship    and 
colonial  and  foreign  requirements  had  been  entered  into.     That 
branch  of  their   business    was    growing   in   a   most   satisfactory 
manner.     Their  branches  were  all  in  a  healthy  and  most  satis- 
factory condition.      One  only  which   gave  them   some   time  ago 
a  little  anxiety  had  now  turned  the  corner  and  was  doing  well. 
The   services  of    those    in  charge  of   their   branches    had    been 
carefully    reviewed,    and    suitable    bonuses    awarded    to    those 
responsible   for    the   satisfactory   profit   they  had  made.      Their 
sales   for  the   year   endfd   December  31',    1917,   altogether   apart 
from     munition     work,     in    London,     Sheffield,     Johaonesburg, 
Paris,    Biarritz,   Nice,   Lausanne,   Rome,   Buenos  Aires,   Rio  de 
Janeiro,  San  Paulo  and  Montreal,  constituted  a  record.     It  gave 
him  even  greater  satisfaction  to  state  that  from  January  i,  igi8, 
down  to  the  latest  practical  date,  their   sales   were  35  per  cent, 
higher  than  their  sales   for   correspondiiig  period   a  year   ago. 
With  regard  to  the  staff,   he  observed  that  nothing  struck  him 
with    greater  force  when  he  joined  the   board  than  the  large 
number  of  employees  who  had  been   in   the  company's  services 
10,  20  and  30  years.     The  board's  relations  with  its  employees 
was  of  a  most  sympathetic  character.     Fifty  per  cent,  of  their 
staff  had  joined  H.M.'s  Forces.     Twenty-six  of  them,  he  greatly 
regretted  to  say,   had  laid  down  their   lives   for  their  country. 
They  had  started  a  war  savings  association  ;  nearly  50  per  cent, 
of  their  staff  had  joined,  and  up  to  date  had  contributed  ^3,444. 
They  continued  to  make  substantial  allowances  where  needed  to 
those  of   their  staff  who  had  joined  H.M.'s  Forces.     They  had 
recently  provided  accommodation  for  supplying  their  staff  with 
luncheons  at  a  nominal   cost,    and    a  rest   and   recreation   room 
for  lady  clerks    had   been    instituted.     Arrangements  were   now 
being  made  for  extending  the  education  of  their   assistants   in 
regard    to   foreign   languages,    salesmanship    and    the   practical 
knowledge  of  the  goods  manufactured  and  sold  by  the  company. 
Mr.   Stanley  A.   Mappin  seconded  the  resolution,  which  was 
carried  unanimously. 


Insurance    News. 

A  marked  expansion  in  the  business  of  the  London  Life  Asso- 
ciation is  reported  for  1917,  the  life  business  completed  being  the 
largest  amount  of  nett  assurance  ever  completed  in  one  year ; 
the  figures  were  /;g30,428  gross,  an  increase  of  ^^59,898,  and 
^905,428  nett,  an  increase  of  ;^i  14,398.  Premiums  showed  an 
increase  of  £23,6^^,  and  nett  interest  an  increase  of  ;^i3,4g7. 
I'or  the  first  time  the  total  premium  was  over  ,^500,000.  Claims 
by  death  were  slightly  higher  at  ^293, 163,  including  ^^45,549 
direct  war  claims;  the  expected  amount  was  ;^398,ioo.  It  has 
been  decided  to  increase  by  one  the  rates  of  reduction  of 
premium,  so  that,  for  the  year  beginning  in  July  next,  the  rates 
for  fully  participating  policies  will  range  from  the  equivalent 
of  124  per  cent,  for  the  first  series  to  53  per  cent,  for  the  12th 
series.  A  new  series  will  now  be  constituted,  with  a  rate  of 
reduction  less  by  three  than  that  for  the  12th.  As  regards  the 
reversionary  bonus  fund,  a  bonus  of  35s.  per  cent,  is  again 
declared ;  ^^9,022  has  been  carried  to  valuation  reserve,  and 
^'43,826  forward. 

Compared  with  1916,  the  nett  premium  income  of  the  British 
General  Insurance  Co.  for  1917  showed  an  increase  of  ;f  113,496 
■*t  ^306,096,  while  nett  interest  was  ^1,986  more  at  pf  10,471. 
As  the  result  of  the  year's  working,  there  was  a  balance  of 
£74,3(>°'  of  which  ^64,885  goes  to  the  various  reserve  funds, 
and  a  final  dividend  of  10  per  cent.,  making  15  per  cent,  for  the 
year,  against  12}  per  cent,  for  1916,  is  to  be  paid.  Depreciation 
on  investments  is  fully  covered  by  the  investment  reserve  fund 
of  ;if2o,ooo.  Cash  and  investments  together  show  an  increase 
°/  ^76.4S9  at  ;,f334,526.  The  company  issued  last  year  205 
life  policies  for  /8o,8oo,  an  increase  of  93  policies  and  of 
,^30.808  in   the  amount  as  compared  with   1916. 

Shareholders  in  the  London  and  Lancashire  Fire  Insurance 
Co.  have^  every  reason  to  be  satisfied  with  the  results  of  the 
past  year's  trading,  and  as  intimated  a  year  ago,  the  full  dis- 
tribution for  the  year  has  been  increased  by  2S.  a  share  to  33s., 
after  which  the  balance  carried  forward  is  only  ^44,623  less 
^t  ^837, 189.  An  analysis  of  the  various  accounts  shows  that 
nett  fire  premiums  were  /2io,3iq  higher  at  ;f2,ii3,56o,  resulting 
in  a  profit,  after  deducting  40  per  cent,  for  the  increased  liability, 
°i  £3^':79S-  The  sum  of  ;f434,903  was  transferred  to  profit 
and  loss,  and  the  fire  funds  were  raised  by  ^^84,000  to 
;^i,245,5oo.  Nett  marine  premiums  were  ^61,867  more  at 
/S5''OoOi  a"d  the  funds  of  this  department  were  raised  by 
^624^500  to  ;^37o,5oo.  A  profit  of  /96,i6i  was  shown  in  the 
accident  department,  although  nett  premiums  declined  by 
/44,84i  to  ^^832,514;  the  accident  funds  remain  at  ;,f 514.000, 
.£103,496  being  transferred  to  profit  and  loss.  As  the  outcome 
of  the  agreement  with  the  Marine  Insurance  Co.,  over  qgj^  per 
cent,  of  the  shares  are  now  the  property  of  the  London  and 
Lancashire.     The  total  purchase  consideration  was  jf  1,674,941  ; 


on  the  other  hand,  the  nett  assets  of  the  Marine  amounted  to 
£',5^S'9'i°,  £toni  which  must  be  deducted  the  provision  for  re- 
demption of  the  debenture  stock  transferred,  and  stamp  duties, 
leaving  a  credit  of  ;Ji,492,g4o.  The  nett  difference  of 
;£^i82,ooo  is  charged  up  in  profit  and  loss  account.     The  balance 

01  the  purchase  price  consists  of  the  difference  in  value  betweeu 
the  shares  issued  at  £2  los.,  and  the  market  price.  After  in. 
creasing  the  funds  by  ^f  108,500,  providing  for  debenture  interest 
and  for  cost  of  business  acquired,  the  directors  w  rite  off 
;^  200,000   from   investments.       Total   reserves     now     stand    at 

DIVIDENDS     ANNOUNCED. 

Alliance  Investment  Co. — For  half-year  ended  April  15  at 
rate  of  6  per  cent,  per  annum,  making  5  per  cent,  for  year,  on 
deferred  stock,  the  same;  forward,  ^12,276,  against  £11,4^3. 

Anglo-American  Telegraph  Co. — Interim  for  quarter  ended 
March  31  of  15s.  per  cent,  on  ordinary  stock  and  £\  los.  per 
cent,  on  preferred  stock,  less  tax,  payable  on  May  i. 

Associated  Tea  Estates  of  Ceylon. — Interim,  5  per  cent,  on 
account  of  year  ending  June  30,  payjWe  on  May  1,  free  of 
tax. 

Cuba-Bartle  Sugar  Plantations. — Interim,  js.  per  share,  free 
of  tax,  on  account  of  year  ending  June  30  next. 

Charcoal  Iron  of  America. — Common  stock  for  March  quarter, 

2  per  cent.,  against  I'/i  per  cent,  in  1917. 

Cuba  Submarine  Telegraph  Co. — Final  for  year  to  Decem- 
ber 31  of  5s.,  plus  a  bonus  of  4s.,  per  share,  tax  free,  on 
ordinary  shares,  making  5  per  cent.,  plus  bonus  of  2  per  cent, 
(or  4s.),  tax  free,  same  as  a  year  ago. 

City  of  Dublin  Steam  Packet  Co. — For  past  half-year  at  5^^ 
per  cent,  per  annum  on  ordinary. 

Direct  United  States  Cable  Co.— Final,  2S.  per  share,  less 
tax,  payable  on  30th  inst.,  making  4  per  cent,  for  year  ended 
March  31,  same   as  for   1916-17. 

Egyptian  DeUa  Land  and  Investment  Co.— For  year  1917  at 
rate  of  4d.  per  share,  i.e.,  same  as  last  year. 

Furness,  Withy  and  Co. — Warrants  on  ordinary  shares,  at 
rate  of  10  per  cent,  per  annum,  for  quarter  ending  April  30 
(6d.  per  share),  free  of  tax,  will  be  posted  on  April  30,  the 
same. 

Ivanhoe  Gold  Corporation. — Fourth  and  final,  3s.  per  share 
(making  total  for  1917  of  los.  6d.  per  share),  payable  on 
April  30 ;  the  same  as  a  year  ago. 

Indo-European  Telegraph  Co. — Final  for  year  1917  of 
£1  2S.  6d.  per  share  (making  7  per  cent,  for  year),  free  of  tax ; 
also  distribution  of  ^'i  los.  per  share,  free  of  tax,  both  payable 
on  May  i,  subject  to  terms  of  Trading  with  Enemy  Proclama- 
tions.    A  year  ago  total  was  the  same. 

London  and  Lancashire  Fire  Insurance  Co. — Further  17s.  per 
share,  making  33s.  per  share,  or  66  per  cent.,  less  tax,  for 
1917,  against  62  per  cent,  for  igi6. 

London  and  Colonial  Investment  Corporation. — Interim  24 
per  cent,  (actual)  on  deferred  stock,  in  respect  of  year  ending 
September  30,  less  tax,  against  2  per  cent. 

London  Trust  Co. — Final  4  per  cent,  on  deferred  stock  for 
year  ended  ifarch  31,  making,  with  interim  2  per  cent.,  6  per 
cent,  for  year,  same  as  for  preceding  year. 

Levensteins. — Interim  £2  per  share,  less  tax,  or  20  per 
cent,  (actual),  against  15  per  cent,  last  May. 

Nitrate  Railways  Co. — Final  8s.  per  share  on  preferred  con- 
verted ordinary  shares,  making  total  and  maximum  for  igi?  of 
7  per  cent.,  and  a  final  8s.  per  share  on  ordinary  (unconverted) 
shares,  making  total  for  igi7  of  7  per  cent.  For  1916  dividends 
were  the  same. 

Parke's  Drug  Stores. — On  preference  shares  for  half-year 
ended  March  3r  at  rate  of  6  per  cent,  per  annum,  less  tax,  pay» 
able  on  April  20. 

Robert  Simpson  Co. — Half-yearly  on  preference  shares  at  rate 
of  6  per  cent,  per  annum,  payable  at  the  London  Joint  Stock 
Bank,  5,  Princes  Street.  E.C. 

Royal  Bank  of  Canada. — 3  per  cent.,  being  at  rate  of  12  per 
cent,  per  annum,  for  three  months  to  May  31,  payable  on 
June  I,  same  as  a  year  ago. 

.Sungei  Besi  Mines. — Interim  rs.  per  share,  less  fax,  payable 
on  26fh   inst. 

Samana  and  Santiago  Railway  (San  Domingo). — Final  for 
1917  on  ordinary  shares  of  2J  per  cent,  (actual),  making  7  per 
cent,  for  year,  against  gj  per  cent. 


The  Yokohama  Specie  Bank,  Ltd.,  announce  that  they  have 
opened  a  branch  at  Sourabaya. 

The  Australian  War  Loan  has  now  reached  a  total  of 
^■38,000,000.  Sydney  has  subscribed  ;f io,2og,ooo,  and  Mel- 
bourne ;fg, 500,000. 

The  quarterly  supplement  (April)  of  "  The  loo  Best  Invest- 
ments"  has  been  issued  by  the  British,  Foreign  and  Colonial 
Corporation,  Limited.  57,  Bishopsgate,  price  3d.  nett.  In 
addition  to  bringing  the  usual  statistical  matter  up  to  date,  the 
booklet  contains  an  interesting  and  informative  article  by  Mr. 
E.  Davies  on  "  Investment  Lender  Present  Conditions." 

British  Columbia  seems  to  be  as  extravagantly  inclined  now 
as  it  was  before  the  war,  and  we  should  like  to  know  why  the 
Dominion  Government  has  been  moved  to  promise  a  bounty  to 
the  Province  to  stimulate  the  production  of  iron  and  steel 
there  from  its  native  ores.  Is  there  any  necessity  for  this 
extravagance  at  present,  or  is  such  propping  required  by  the 
programme  of  the  Provincial  Government  in  regard  to  current 
expenditure?  In  the  year  ending  March  31  next  the  estimates 
contem.plate  an  excess  of  $3,400,000  in  the  expenditure  over  the 
income. 


400. 


XTbe  Jnvestors'  IReview. 


April  20,  1918. 


INDIAN  RAILWAYS. 


OHOSS  TRAFriC  «0R  W«I», 

GROSS  TRAFFIC  TO  DATS . 

Name. 

Week 
ending 

In.  or  dec. 

wi 

In.  or  dec 

Amount 

on  latt 

JC 

Amonnt 

on  last 

vear.      \g  1 

vear. 

Rs. 

Rs, 

k». 

Rs, 

Aigam  Bengal 

Feb,     2 

"57,724 

+       29,252 

24,64,026 

+    ",80,313 

Bacsl 

9 

16,300 

—         8,^00 

7,ig,8oo 

—   2,19,300 

BeoKal&N.-W.     .. 

.•       2 

4.49.400 

+       22,193 

68,43."53 

-    6,38,l>9 

Beneal  Nagpur 

..        9 

9,89,000 

—    ot.ooo 
+     56.000 

4.63,85,932 

+  35. ",016 

Bombay,  Karoda  .. 

April    6 

14.39,000 

14,39,000 

+       86,000 

B  rma 

Feb.     a 

5.34,328 

+       3.359 

t 

",79.12.632 
72.685 

—      23,106 

Delhi  Umballa       .. 

April    6 

72,635 

+       5.733 

+         5,733 

East  Indian,, 

6 

23  55.000 

+     48,000 

Gt.  Indian  Penln.  ,. 

Mar.  31 

34,86,200 

+  7,96,900 

5,96,55.554 

+  38.99.234 

Lucltnow-Bareilly. , 

|an.    26 

54.359 

—       7,216 

8,20,169 

t-       83, '75 

Madras      and       S. 

Mahratla  ., 

Feb.     9 

10,60, 003 

766 

",90.57,643 

+    9,78,003 

Niiam'sGd.(Broadl 

.•       9 

J.41,527 

+           I4Q 

25.05,155 

1-        64,334 

,,        „     (Metre) 
Rohilkund  and 

.<       9 

1,23,720 

+      "1.775 

"5. 5". 324 

+        38,895 

Kumaon  ,. 

fan.    26 

36,701 

-       2,29-' 

700,330 

+       57,477 

South  Indian 

Feb.     9 

6,68,223 

+      55.068 

1,22,56,027 

4    9,08,470 

MONTHLY    STATEMENTS. 


t  April  1. 

I  Octobei 

I. 

TRAMWAY  AND  OMNIBUS.— HOME. 

Dublin  United 

Mar.   I 

£ 
7,305 

£ 
+    ",364 

61,814 

+ 

ll,o8B 

Hastings  and  DIst.. 

„    "8 

".093 

+       124 

10,52" 

+ 

840 

Isle  »l  Thanet 

„     "6 

194 

—        55 

4,ltn 

".843 

Lancashire  United,. 

Apr.  10 

2.5.17 

—      474 

37.496 

+ 

"1,126 

Provincial    ., 

Mar.  30 

2,590 

+       813 

62,130 

+ 

11,225 

Yoriis,  (Wst.  Rdng.l 

^pr,  14 

2,278 

—        22 

* 

35,882 

+ 

8,375 

From  Oct.  i.  f  From  Jan.  i. 

TRAMWAY  AND  OMNIBUS— FORblGN   AND  COLONIAL. 


Alabama  Power    . 
Anglo-Argentine    . 
Auckland  Electrio. 
Brazilian  Traction 
Brisbane  Eleo.  Inv. 
British  Columbia  .. 
B.A.  Lacroze 
Burmab  Electric  , . 
Calcutta 
Cartbagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &T.  ., 
Hongkong  .. 
La  Plata 

Lima 

Madras  Electric   . 
Manila  Electric... 
Mexico         .. 
Rangoon 

Singapore  Electric 
Toronto 

United  of  Monte  V 
Vera  Cru2    ,. 
Winnipeg    . . 


Feb, 

1 

.\pr. 

"5 

Oct. 

26 

Feb. 

« 

Mar. 

Feb 

« 

Mar. 

Feb. 

'j 

Apr. 

6 

Mar 

b 

Feb. 

, 

16 

Mar 

* 

Feb. 

Mar 

3ir 

Aug 

8 

Nov 

t 

Mar 

t 

Feb. 

5 

,, 

« 

Mar 

Feb. 

§ 

£ 
127,420 
58,041 
22,308 

tl3,565,ooo 

,  35,530 
t"3l.940 
42,647 
Rs.22.9S5 
Rs.72,404 

5,316 

"2,972 

$18,149 

5,347 

41,913 

Rs.  48,284 

65,467 

1215,256 

5  955 

»"3.537 

»433,447 

3^.659 

42,200 

»7".403 


£ 

Ms. 

+      26,091 

12 

+         ".9"8 

• 

+             880 

a 

—  M  320,000 

2 

+         2,190 

.3 

+     $30,260 

7 

+         ",310 

9 

+   Rs.     73 

+  Rs.4,047 

+        2,361 

+        ",076 

I" 

+      »5,635 

+            819 

+         7.685 

+  R5.12,949 

+          4,667 

—  » 108,669 

271 

—        »I,292 

-       »7,769 

2 

f-           4,650 

5 

—        6,300 

2 

-    I7.107 

2 

c 

345,887 

820,536 

92,118 

M7,26i,coo 

102,039 

(902,899 

346,421 

157.522 

Rs93i,239 

"3,358 

147,938 

»94.3i8 

14,803 

85,449 

Rs. 237,003 

547.492 

»3,193,"06 

16,978 

t75.ll4 

$gir,ic9 

172,333 

84,200 

$150,195 


£ 

+  327,163 
+  55.950 
+       7.832 

—  M626,ooo 
+  5.879 
+  $"31,034 
1-  69 
+  Rs,  217 
+  Rs.47,718 

+  3,198 

+  435 

—  tl02 
+  I  867 
+  14,380 
fRs.33,569 
+         70,625 

—  $197,227 
+  1.514 

—  $5,447 

—  »9o8 
+        14,941 

—  19,300 

—  $"6,837 


628  days.       ♦  From  Jan.  i       ;  Netl.       a  From  July  i.      c  Two  weeks. 
FOREIGN   RAILWAYS. 


Alcoyand  Gandia , 
Antofagasta    (Chili) 
Arauco 

Argentine  N.E, 
Bilbao  R,  and  Canta 
Bolivar 
Brazil 

Brazil  Gt.  Southern 
B,  Ayres  8c   Pacific 
Do.  Central 
Do,  Gt,  South'n 
Do.       Western 
Central  Argentine. , 
C.Ur'g'ayofMte  V. 
Do.   East'n  Ex, 
Do.North'nEx, 
Do,  West'n  Ex. 
Cordoba  Central  ,, 
Costa  Rica   . 
Cuban  Central 
Dorada  Extension. . 

Egyptian  Delta 

Entre  Rios  ,, 

French  Sante  P6 

Gt.  South,  of  Spain 

Gt.West.  ofBrazil.. 

Havana  Central     . , 

Inter,  of  C,  Amer,,. 

La  Guaira  and  Car 

Leopoidina,. 

Midland  Uruguay  , , 

Mogyana 

N,W,  of  Uruguay  .. 

Nitrate 

Paraguay  Central  . , 

Paulista 

Peruvian  Corpn    . , 

Salvador 

State  of  Bahia  S.W, 

8.  Paulo  (Brazilian) 

Sorocabana..        .. 

Taltal 

United  of  Havana,, 

West'n  Of  Havana. . 

Zafra  and  Huelva. . 


♦  Months,  t  From  Jan.  i.   t  From  JuJy  i,    c  Neil,    b  15 
COLONIAL  RAILWAYS 


Ps.i37,90o    -Ps. 17,470 

610,125    +       73.235 

26,5*0   +         4,500 

342,800]+       64,598 

12,548   +  907 

8^,236]+        19,230 

M5, 202,000  I  +  Mio704gg 

M47l,527    +    M5i,o57 

3,744,OJO    H 

210,79c  H 

4,535,705  I 

2,031,000 

4.454,200  ] 

754.216 

205,721 

"32,885 

92,213 

1,234,850 

9 1.579 

810,539 

23,900 

264,360 

630,400 

147,488 

Ps,  416,908 

277,800 

337.339 

47,671 

"9,250 

478.059 

119,814 

M  24041,000 

8237,090 

205,843 

117,260 

M34[l5,ooo 

89,322,560 

$80,387 

M237,000 

469.525 

VI  1.952,0.0 

224,678 

2,283.342 

■    358,776 

22,493 

days,    a  10  days 


+ 

209,000 

+ 

I8,6j4 

— 

110,549 

_ 

7.1-00 

+ 

138600 

+ 

215.049 

+ 

7432 

+ 

3466s 

+ 

16,261 

+ 

33,790 

— 

80,848 

)■ 

"54.290 

— 

2,700 

+ 

62.069 

+ 

143.300 

4- 

55.7"3 

—  Ps946,382 

+ 

80,050 

+ 

68,731 

"7.585 

— 

8,250 

+ 

134,450 

+ 

4,266 

+ 

^812,420 

+ 

$16,015 

+ 

"4,301 

+ 

14,200 

+  M2188775 

+ 

S1020168 

$5,670 

— 

M53,ooo 

+ 

164,33" 

+  M  "99,895 

4- 

57.023 

+ 

575.477 

+ 

Ioo,o83 

+ 

2.392 

Bein 

Dec.  'c 

49,448 

—      1,841 

^ 

£ 

"73, 7?7 

+           6.532 

Canadian  Northern 

Apr.  14 

$932,600 

f   $5l,ouo 

: 

♦32,545,600 

+   $831,900 

Canadian  Pacifio   , . 

,,    "4 

»2,935,ooo 

+  $102,000 

t 

$38,548,000 

+  $1795,000 

Gr.Trk,  Main  Line 

„    14 

239,741 

+      62,927 

t 

2,581,373 

—        18,242 

Gr.Trk.  Western,. 

.,    "4 

39,883 

+       4,19' 

t 

476,024 

—          6,765 

Detroit  G,  H.&M. 

,„    "4 

"".034 

—        3,123       + 

159,968 

—        "4.789 

GrTkPao  Prairie  So 

Mar.  31 

50.40  [ 

+      23,402 

t 

309,040 

i-        97.271 

MasbonaianJ 

Nov.  • 

56,698 

—        1,486 

1 

56,698 

1,486 

Mid.  of  Westn.  Aus, 

Feb.   • 

8,617 

—             88 

« 

61, "34 

+          3,9"5 

New  Cape  Central, . 

Mar,  2 

2.324 

+            34t 

1 

21,157 

+          3,320 

Rhodesia 

Dec,  V 

79<220 

—         2,472 

3 

269,405 

+        11.925 

MAMB 

MCTT  EARHIMOg  FOR   u'oHTH, 

KETT  EARHIMaSTODATB. 

Month. 

Aniounl. 

In.  or  Dec. 
on  last  year 

11 

Amount, 

In.  01  Dee. 
00  last  year 

Doll, 

Dohi. 

Dots 

DoU. 

Alohison  T.  &  S.  F< 

Jan, 

i,9i2,oro 

- 1,638,900 

12 

47,829,000 

—  1,248.000 

Atlantic  Coast  Line 

,, 

",075,000 

—    212,000 

"2 

12,014,000 

+     607,000 

Baltimore  &  Ohio  ., 

Fet. 

1,852,000 

—  I,"6j.noC 

12 

30,589,000 

-  3.425,oo» 

Canadian   Northern 

b  480,400 

—    588,6  X) 

8 

2.279700 

—  4  604,700 

Canadian  Pacifio    ,, 

,, 

59",ooo 

-1,395,000 

2 

".759.0CO  —2,659.000 

Chesapeake  &  Ohio 

Jan. 

b  81,000 

-1,334,000 

12 

14,099,000 

—  l,4to,oo« 

Chicago  *  N.W.    ., 

b  785,000 

—2,797,000 

"2 

27,015,000 

—  3.634.000 

Chicago  Burl,  &  Q. 

Nov. 

1,642,000 

—2,031,000 

II 

31,281,000 

-  3,956.000 

Chicago  G.W. 

Jan. 

b  fo,ooo 

—   322,000 

12 

3,876,000 

—  1,006,000 

Chicago  Mil.&  S,P. 

b  628,000 

-2,20->,0OO 

—1,283.000 

12 

21,967,000 

—  9.360,000 

Chicago,  Rock  I.&P. 

,, 

80,000 

12 

17,623,000 

—  2.953.000 

Colorado  ^Southern 

Dec 



—       11,000 

II 

5  320.000 

+      370,000 

Cuba 

Jan. 

454, "7" 

1-  245.735 

7 

",59,.444 

+      398,9  iO 

Delaware 4  Hud.  ,. 

3.600 

—   720,000 

12 

5.6S6.000 

—  2,124,000 

Denver  &  Rio  Gran. 

, 

4"5,OM 

—    282,OcO 

22 

7,418,000 

—  1,963.000 

Brie 

Dec. 

507.000 

+  1,848,000 

12 

10,538,000 
6  £409.700 

-  5,277,000 

Gr.Tr,  Main  Line.. 

Feb. 

6  241,700 

-£219,400 

12 

-  £601,550 

Grand  Trunk  Wesin 

ji 

6  ^40,150 

—    £'27,..0O 

12 

£79.300 

-  £64.500 

DeiroitG.ll.SMil. 

*£'3."«'  1—    £3,900 

12 

£28,  .00 

-     £6  750 

Gt.  Northern 

Dec. 

1.165,000  |— 1,401,000 

12 

22,987.000 

—  6,179,000 

Illinois  Central      ,, 

Jan. 

b  477.000  1—2,034.000 

12 

18,6)6,000 

+  1,847,000 

Kansas  City  Southn. 
Lehigh  Valley 

Feb. 

455,000  i+      59,000 

2 

824.000 

—       lo.oeo 

Jan. 

6986,000  1—1,346,000 

12 

9,403,000 

—  2,876,000 

Louisville  &  Nashvl. 

622,000 

—1,264,000 

12 

17,761,000 

—  2,090,000 

Minn,S.P.  (Soo)l  ,, 

Oec. 

357,000 

—    297,oco 

"2 

9,33",ooo 

-  3,648,000 

Miss.  K.  &  Texas  . 

Jan. 

125,000 

-     18  -,000 

12 

8,215.000 

+  2  467,000 

Missouri  Pacihc   ,. 

Nov. 

1,690,000 

+    321,000 

5 

9425,000 

+  1,920,003 

New  York  Cent. &H 

Jan. 

b  1,149,000 

-4,776,000 

12 

52,2l8,0«) 

—12063,000 

N.Y.N. Haven&H. 

Dec. 

1,182,000 

-  870,  00 

12 

23,815.000 

—  2,245,00* 

New  York Ont.&W. 

Jan. 

b  7,000 

—  125000 

12 

2,228.ooe 

-     =9Z'"* 

Norlolk  &  Western. 

223,000 

-1,467,000 

12 

19,654,00c 

—  3,808,000 

Northern  Pacifio   , , 

803,000 

—1,424.000 

12 

27,423,000 

Pennsyivdnia    East 

and  West  Lines.. 

5,940,000 

—1 1072000 

1 

5.9l»,«» 

Phil,  and  Reading  . , 

6  i,299,ofo 

-1,898,000 

II 

14,877,0:0 

—  6,626,000 
+    212,860 

Reading 

577,033 

+     5,826 

"1 

9,806,000 

St.  Louis  4  San  F. . 

Dec. 

1,225,000 

—  244,000 

6 

9,576,000 
8,628,000 

Seaboard  Air  Line.. 

673,000 

—    206,000 

12 

Souttiern 

Jan. 

1,191,000 

—  833.000 

7 

15,944.000 

+   1,255,0*0 

Southern  Pacifio   ,. 

_ 

—   536,000 

It 

59,785,»oo 

+  7.953.000 

Union  Pacific 

_ 

+     72,000 

12 

42,942,000 

Wabash 

" 

b  316,000 

—1 ,026,000 

12 

12,003,000 

—    844,000 

{  Includes  Wisconsin  Central.    *  Gross  earnings,    t  Surplus,    b  Deficit. 

COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 

Period. 


British     American      Land 
(Dec.) 

Do Prev. 

British      and      American 

Mortgage (Dec ) 

Do Prev. 

General  Steam  Fishing;  Co. 
(Mar.) 

Do Prev 

Rowton  Houses, ,.,  (Dec.) 

Do Prev. 

Second  Scottish  American 
(Mar.) 

Do Prev. 

Second  Scottish  Northern 

Investment (April) 

Do Prev. 


Gross 
Profit. 


9,210 
7.070 

119,800 
118,170 

49,600 
23  280 
75.370 
67,280 

57.390 
59,210 

35.090 
32,920 


Nett 
Profit, 


4,760 
4,120 

37.780 
35.550 

27,820 

8,320 

15.870 

13.450 

29.320 
30,140 

i7.'5o 
15,040 


Total 
Re- 
serves. 


298,000 
285,<X)0 

6,000 

2,500 

11,000 

10,000 

150.000 
150,000 

25.000 
25,000 


Divi- 
dend. 


|Carried 
i    For- 
ward, 


% 

37i 
374 

15 
15 

15 
7i 
4 
4 

9i 
9i 

5 
5 


2.660 

2, 020 

3,780 
3,550 


1,940 
2,150 
2,130 

19.930 
19,100 

620 
700 


NOTICES. 


CITY  OF  OSAKA  5  PER  CENT.  STERLING 

BONDS  FOR  £3,084,940. 

NOTICE  IS  HEREBY  GIVEN  that  the  COUPONS  due  1st 
M^y  1918.  will  be  PAID  on  and  after  that  date  (Saturdays 
excepted)  between  the  hours  of  11  and  3,  by  The  Yokohama 
Specie    Bank.  Ltd.,   from  whom  lists  may  be  obtained. 

Coupons  must  be  left  three  clear  days  for  examination  pnor  to 
navment  For  The  Yokohama  Specie  Bank,  Ltd., 

P^  ■  K.  TATSUMI, 

7,  Bishopsgate,  London,  E.G.  2.  Manager, 

15th  .\pril,  1918. 


t  July  I, 


t  Jan,  1,     ,  c  From  Oct,  i. 


COUVERNEMENT  IMPERIAL  DU  JAPON. 

BONS  DE  TRESOR  5  PER  GENT.  DE  1913. 

NOTICE  IS  HEREBY  GIVEN  that  the  COUPONS  due  1st 

May,  1918,  will  be  PAID  on  and  after  that  date  (Saturdays 
excepted),  between  the  hours  of  11  and  3,  by  The  Yokohama 
Specie  Bank,  Limited,  from  whom  lists  may  be  obtained. 

Coupons  must  be  left  three  clear  days  fo.-  examination  prior  to 
navment  For  The  Yokohama  Specie  Bank,  Ltd., 

P^  K,  TATSUMI, 

7,  Bishopsgate,  London,  E,C.  2,  Manager, 

15th  April,  1918. 


Printed  by  the  Si.  Clements  Press,  Ltd.,  Portugal  Street,  Kingsway,  London,  W.C,  for  the  Proprietor  of  The  Ihvestom"  Review,  and  PuWished 
by  The  Feopkietok,  Norfolk  House,  Nortolk  Stteet,  Strand,  W.C.  «.— April  20,  1918,  l"  2401 


TTbe 


Snveetote'  1Re\>few 


FOUNDED    BY    A.     </.     WILSON,     FEBRUARY,     1892. 


Vol.  XLI.— No.  1,060.] 

NEW  SERIES. 


rBe|lBtered  as  al 
L    Newapaper.    J 


SATURDAY,  APRIL  37,  1918. 


[Price  6d. 


CONTENTS. 


Passing  Events : — National  War  Bond  Sales  —  Revenue  — 
German  Finance  —  Dutch  Position  —  Herr  Helfferich's 
Abuse  —  Lord  Rothermere's  Resignation  —  London  and 
Brazilian  Bank  —  National  Bank  of  Egypt  —  British  Dyes 

—  Italy's  Foreign  Commerce —  Algoma  Central  and  Hudson 
Railway  —  Baldwins  —  Argentine  Tobacco  —  Australian 
Production  of  Zinc  —  East  Rand  Proprietary  Mines 
(pp.  403-7). 

Leading  Articles: — The  Budget  —  Merchant  Shipping  Ix)8ses  — 
By-the-Way  War  Notes  (pp.  407-11). 

Balance  Sheet  Facts: — Curtis's  and  Harvey  —  J.  Mandleberg 
&  Co.  —  Sutherland  Steamship  Co.  (pp.  411  and  417). 

Money  and  Credit  Notes : — No  Change  in  Credit  Conditions  — 
Bank  Return  —  Japanese  Bond  Redemptions  —  5  per  cent. 
War  Loan  and  Income-tax  Troubles  —  Price  of  4  per  cent. 
Tax-compounded  Loan  Raised  —  Exchange  Movements  — 
Spci^td  Gin^rale  de  Paris  Expansion  —  Silver  (pp.  412-14). 

Mining  News : — Geldenhuis  Deep  —  Ivanhoe  —  Gold  Coast 
Amalgamated   —   Dolcoath    Mine  —   Bantjes  —    Robinson 

—  Murex  —  Chinese  Engineering  (p.  416). 

Company  Results  in  Brief  (p.  411). 

The  Week's  Stock  Markets  (pp.  414-15). 

London  Produce  Markets  (p.  415). 

The  Week  in  Mines  (p    416). 


American  Business  Notes: — Sir  Sidney  Low's  Carping 
Criticisms  (pp.  416-17). 

Insurance  News : — Royal  Exchange  —  Northern  — ■  Atlas  — 
Caledonian  —  Edinburgh  Life  —  General  Accident  — 
London  Life  —  Century  —  Guarantee  Society  —  Scottish 
Provident  —  Fine  Art  and  General  (p.  418). 

Tea,  Oil.  and  Rubber :— Rubber  Market  —  Selaba  Rubber 
Estate  —  Haroenden   (Selangor)  Rubber  —  Cheviot   Rubber 

—  Dimbula  Valley  (Ceylon)  Tea  (pp.  418-9). 

What  Balance  Sheets  Tell :— Canada  Co.  —  Thomas  Tilling  — 
International  Linotype  —  Steel  Bros,  and  Co.  (p.  419). 

Company  Meetings: —  Joseph  Travers  and  Sons  —  Grand 
Trunk  Railway  of  Canada  —  Ooregum  Gold  Mining  — 
Standard    Bank  of    South  Africa  —  Argentine  Tobacco  Co. 

—  London  and  Brazilian  Bank  —  New  Transvaal  Chemical 

—  Nundryroog  Co.  —  Para  Electric  Railways  and  Lighting 
Co.  —  Kimberley  Waterworks  Co.  (pp.  419-23). 

Public  Income  and  Expenditure  (p.  417). 

Dividends  Announced  (p.  417), 

Notes  on  Books  (p.  423).  '      •' 

Traffic  Returns  (p.  424). 

Answers  to  Coirespondents  (p.  424). 

Books   Received  (p.  424). 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the   Imperial 
Japanese  Government,  1899. 


HEAD   OFFICE 


-      TAIPEH,    FORMOSA. 


Amoy,  Batavia,  Bombay,  Canton,  Foochow,  Hankow,  Hongkongi 
Kuikiang,  Kobe,  New  Yoik,  Osaka,  Shanghai,  Singapore,  Swatow, 
Socrabaya,  Tokyo,  and  every  important  city  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-Chtna,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58.  OLD  BROAD  ST.,  E.C.  2. 


THE  YOKOHAMA  SPECIE   BANK,  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    18BO. 

Subscribed  Capital        Yen  <8,000,000 

Capital  Paid  Up Ten  42,000,000 

Reserve  Fund         ..        ..  ..    Yen  22,100,000 

Head  Office:  YOKOHAMA. 

Branthei  and  Agencies  at 
Bombay.  Honolulu.  Newchwang.  Shimonoseki. 

Calcutta.  Hong  Kong.  New  York.  Singapore. 

Changchun.  Kobe.  Osaka.  Sourabaya. 

Dairen  (Dalny).  Los  Angeles.  Peking.  Sydney. 

Fengtien  (Mukden).       Lyons,  Rangoon.  Tientsin. 

Hankow.  Manila  San  Francisco.  Tokyo, 

Harbin.  Nagasaki.  Seattle.  Tsinanfu. 

Shanghai.  Tsingtau. 

The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Draits 
asd  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  transacts  General  Bankiug  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  application. 
London  Office:  7,  BISHOPSGATE.  E.C.e. 

K.  TATSUMI,  Maaager. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorporated  1880. 

Authorised  and  Issued  Capital,  £e,aoo,aoo. 

Paid-up  Capital,  £2,000,000 ;  Reserve  Fund,  £2,000,000 ;  together   £4,000,000 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OFFICE   -        -        -        71,  CORNHILL,  LONDON,   E.O.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Ausicalian 
States  and  Dominion  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made, 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  are  received  for  fixed  period»  on  terms  which  m»y  be  ascertained 
OQ  application. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Otlice:  IS,  Gracechurch  Street,  London,  E.C.  8. 

Capital  Authorised         £1,500,000 

Capital  Issued      1,125,000 

Capital  Paid  Up 562,500 

Reserve  Fund  (Undivided  Profits)  708,432 

Brjmches  t 

INDIA,  BURMAH,  CEYLON.    STRAITS    SETTLEMENTS 

CHINA.    AND    PORT    LOUIS,    MAURITIUS. 

The  Bank  buys  and  sells  Bills  of  Exchange,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  Hast,  on  terms  to  be  bad  on  application. 

DEPOSITS  received  for  one  year  at  s  per  cent,  par  annum.    Rates  for  other 

periods  on  applicetion. 

On  ourpent  KOOOunta  interest  is  allowed  at  2  per  cent,  per  annum  en 

daily  balances. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital  £4,000, 000 

Paid-up  Capital 1,800.000 

Reserve  Fund    2,000i000 

BRANCHES- 
ARGENTINE.  —  Buenos    Aires,    Rosario,    Mendoza,    Concordia,    Babia 
Blanca,  Cordoba,  Tucuman,    Parana,   Barracas  (Buenos  Aires),   Once 
(Buenos  Aires),  Boca  (Buenos  Aires),  Calle  Sania  F^  (Buenos  Aires), 
Calle    B    de    Irigoyen    (Buenos    Aires).      URUGUAY.— Montevideo, 
Montevideo    Agency    (Calle    Rio    Negro),    Paysandu    (Agency),    Salto 
(Agency).       BRAZIL.  —  Rio   de   Janeiro,    Sao    Paulo,   Santas,    Per- 
nambuco,  Para,  Bahia,  Victoria,  Curityba,  Manaos  (Agency).     CHILI — 
Valparaiso,  Santiago.      FRANCE— Paris  (16  Rue  HaMvy).     Agency  in 
New   York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued-    Bills  n^ottated, 
advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  3. 


UNION      BANK     OF     CANADA. 


Incokporatkd  1863. 


Head  Office:  WINNIPEG. 


PAID-UP  CAPITAL ts.ooo.ooo 

R£5T   AND    UNDIVIDED    PROFITS t3,6oo,oao 

TOTAL   A53ETS    eXCEBO  ..        .,    9143,000,000 

The  Bank  has  over  300  Branches  in  Canada,  and  Agents  in  the  principal 
cities  in  America.       General  Banking  Business  Conducted. 

Depoftkts  Reoeived  for  fixed  periods  at  favourable  rates,  which  may  be 
ascertained  on  application  to 

London  Offtow  :  t,  PRINOfS  STREIT,  E.G.  I,  Md  »,  UYMMHUT,  t,W. 


Kaw  York  Jlteney :  49,  Wall  Street, 


402 


Zbc  Jnvestore'  IRevtew, 


Ai'Rii.  27,   1918. 


BANKS, 


CHARTERED  BANK  OF  INDIA, 
AUSTRALIA,  AND  CHINA, 

38,  Bishopsgate,    London,  E.G.  2. 

Incorpokated  bv  Roval  Charter. 
Capital,  £1,200,000.     Reserve  Fand,  £2,000,000, 


SIR  MONTAGU  CORNISH 

TURNER,  Chairman 
SIR    DUNCAN  CARMICHAEL. 
THOMAS  CUTHBERTSON,  Esq. 
SIR  ALFRED  DENT,  K.C.M.G. 
Hanatfers 


Ooart  of  Dlreotora. 


NEVILLE 


WILLIAM       HENRY 

GOSCHEN,  Esq. 
The  Right    Hon.  LORD  GEORGE 

HAMILTON,  G.C.S.I. 
WILLIAM  FOOT  MITCHELL,  E»a. 
LEWIS  ALEXANDER  WALLACE, 
T.  H.  WHITEHEAD  and  W.  E.  PRESTON.  [Esq. 

Bub-Hanatfer:  J.  S.  BRUCE. 


Bankers  ; 

THE    BANK    OF    ENQLANI). 

•--^.^J^P^.i-.?'*""*'^.,*^''''*'    AND    MIDLAND    BANK,    Limited. 

JUS  H?/t'?2S  COUNTY,  WESTMINSTER  &  PARRS  BANK,  Limited. 

THE  NATIONAL  PROVINCIAL   &    UNION    BANK   OF    ENGLAND, 

Limited. 

THE    NATIONAL    BANK    OF   SCOTLAND,    Limited. 

The  Corporation  buy  and  receive  for  colleclion  Bills  of  Exchange,   grant 

Drafts  and  transact  general  banking  business  connected  with  the  East. 

DEPOSITS  OF  MONEY  are  received  (orfized  periods  on  terms  which 

may  be    ascertained  on  application.       Interest  payable    half-yearly, 

30th  June  and  aist  December. 


THE   BANK   OF 
BRITISH    NORTH    AMERICA. 

Established  1836.  INCORPORATED  by  ROYAL  CHARTER  1840. 

PAID-UP  CAPITAL  ..  £1,000,000.  RESERVE  FUND  ..  £620,000. 

Head  Office:— 3,  GRACECHURCH  STREET,  LONDON,  E.C.  3. 
Court  of  Directors. 
Lt.-Col.  F.  R.  S.  BALFOUR.   Lieut  E.GEOFFREV  Hon.  A.  R.  MILLS,  M. P. 
J.  H.  BRODIE.  HOARE,R.N.V.R.    MajorC.  W.TOMKINSON 

J.  H.M AVNE  CAMPBELL.  F.  LUBBOCK.  G.  D.  WHATMAN. 

E.  A.  HOARE. 

SPECIAL  FACILITIES  FOR  COLLECTION  OF  BILLS,  &c. 


Deposits  received  at  rates  which  may  be  obtained  on  application. 

ALL     KINDS     OF      BANKING      BUSINESS     TRANSACTED 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

Head  Offic*— 77,  Old  Broad  Straat.  E.C. 

Subscribed  Capital         fi1,276,747     10    O 

Paid  up  Capital 669,686      O    O 

Reserve  Fund  and  Undivided  Pro6ts        ,.  375,680  11     8 

Reserve  Liability  of  Proprietors       .,         ,.  606,962    10    0 

REMITTANCES  made  by  CABLE. 
DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issned  upon 

Branches  and  Agents. 
BILLS  on  Australasia  NEGOTIATED  or  sent  for  eolleetion, 
DEPOSITS  RECEIVED  for  periods  and  at  rates  which  may  be  asoerlaiaed 

on  application,  and   Banking   Business   of   every  desortpticn   conducted 

with  Australia. 


^be  3n\>e0tor0'  IReview. 

SCALE  OF  CHARGES  POR  ADVERTISEMENTS. 

PROSPECTUSES, 
Full  Page  ...  ...  ...     £25      O    O 

Under  one  page,  at  per  inch,  ISO 

single  column 
Special  positions  by  arrangement. 

REPORTS    OF    COMPANY    MEETINGS. 
Minimum     ...  ...  ...       £4      O    O 

Per  Column...  ...  ...  6    11     6 


COMPANIES' 

Whole  Page 
Half  Page   ... 
Quarter  Page 


BALANCE-SHEETS. 

ei5   16  o 

8      2  6 

4      2  6 


DIVIDEND    NOTICES,    AC. 
Per  Inch     ...  ...  ...      £o   12     6 

BANKS    AND    INSURANCE    COMPANIES. 
Special  position  ...  ...  O  18    9 

Front    Page    (cover)   or   facing 

Money  Article,  per  inch      ...        £0  16    O 
Ordinary  position,  per  inch      ...  O  12    6 

DISCOUNT  FOR  Series.— 5%  for  Thirteen,  10%  for  Twenty-six. 
15%  for  Thirty-nine,  and  20%  for  Fifty-two. 

"INVESTORS'  REVIEW,"   Norfolk   House,  NoaroLX  Strbbt,  Strand, 
London,  W.C. 


INSURANCE. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 

£9,700,000 
or  over  £31,000  for  each  Working  Day. 

ALLIANCE  ASSURANCE 

COiVIPANY,      LIMITED. 

Head  Office:  BARTHOLOMEW  LANE,  LONDON.  E.C.  2. 


ASSETS    EXCEED    £24,000,000. 


Chairman  i 
The    Hon.    N.    CHARLES    ROTHSCHILa 


The  operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  Infopmation  respecting 

ESTATE    DUTY   «no 

CHILDREN'S   EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  application 
to  the  Head  Offlce  as  above, 
OP  to  any  of  the  Offices  op 
Agencies   of    the    Company. 

O.  MORGAN  OWEN.  General  Manager, 


A  PRACTICAL  PENSION  POLICY 
FOR    WOMEN    WORKERS. 

"  After    the    heat    and   turmoil   of   the   day. 
The  sheltered   haven  of  the  peaceful  years." 

A   leaflet  entitled 

"AFTER" 

giving  full  particulars  of  a  new   and   attractive 
scheme  will  be  sent  post  free  on  application  to  the 

NATIONAL    PROVIDENT  INSTITUTION, 

48  GRACECHURCH  STREET,  LONDON,  E.C.  3. 

BONDS   CANCELLED. 

IMPERIAL   JAPANESE  GOVERNMENT    4.^    PER 
CENT.  STERLING  LOANS  OF  1905. 

The  YOKOHAMA  SPECIE  BANK.  LIMITED,  LONDON, 
announces  that  ^^254, 500  4J  per  cent.  Sterling  Bonds  of  the  1st 
series,  and  ;^245,520  4i  per  cent.  Sterling  Bonds  of  the  2nd 
series  have  been  purchased  on  behalf  of  the  Imperial  Japanese 
Government  for  the  purpose  of  cancellation,  and  the  said  Bonds 
are  now  cancelled. 

The  quantities  and  denominations  of  the  Bonds  so  cancelled 
are  the  following: — 


First  Series. 

£ 
26  of  500 
70S  of  200 
1,005  of  100 
London,  22nd  April,  1918. 


Second  Series. 
£ 

883  of  200 
560  of  100 
646  of    20 


^be  5nveetore*  1Rev(ew, 


Vol.  XLI.— No.  i,o6o. 


SATURDAY,  APRIL  27,  1918. 


New  Series. 


("*;'.'JJ'p.V.')  Price  6d. 


PUBLISHER'S    NOTICES. 

Ube  investors'  IReVteW  is  a  subscription  journal,  and  will 
be  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
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For  the  Colonies  and  Abroad  the  charge  is 

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"  Investors'  Review," 

Norfolk  House,  Norfolk  Street, 
London,  W.C. 

Telephone  No. :  Telegraphic    Address  : 

Gerrard  9132.  "  Unveiling,  London." 

The  Editor  cannot  undertake  to  return  rejected  com' 
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Letters  from  correspondents  must,  in  every  case  be 
authenticated  by  the  name  and  address  of  the  writer. 

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made  for  the  Insertion  of  reports  under  the  beading  of 
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ANSWERS  TO  QUERIES. 

One    Reply    to    One    Question  —  One    Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rata 
of  One  Shilling  each.  The  questions  should  be  numbered 
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For  a  fee  of  One  Guinea  per  annum  paid  in  advance,  a 
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exhaustion  will  also  be  given  there. 

Telegpams  advising  about  new  securities  cost  Half-a- 
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Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  on  terras  varying  according  to  the  time 
taken. 

Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guineai  each  list  different. 


Passing   Events. 


Advertisements  are  being  published  broadcast  by  the 
Publicity  Department  of  the  Exchequer  urging  the 
nation  to  make  up  it.s  subscriptions  to  War  Bonds  to 
;^25, 000,000  a  week.  The  average  so  far  has  not  quite 
equalled  that  amount  which  we  are  asked  to  regard  as 
the  minimum  necessary,  and  it  certainly  is  that.  But 
in  recent  weeks  the  amount  received  has  been  painfully- 
short  of  the  required  standard.  Last  week,  for  instance, 
there  was  an  increase  of  1,218  in  the  number  of  appli- 
cations, making  them  22,066,  but  the  amount  applied 
for  was  ;^849,28o  down  at  ;^i6,436,ooo.  The  total 
debt  is  therefore  no  more  than  ;^'655,834,ooo  as  pro- 
ceeds of  the  Bank  of  England  issue  alone,  and 
not  much  of  a  supplement  to  that  sum 
comes  from  the  Post  Office  issue.  For  the 
week  ended  Saturday,  April  13,  there  were  37,266 
applications  at  the  Post  Oflicc,  or  21,566  more  than  in 
the  preceding  week,  but  this  swelling  out  in  the  num- 
bers gave  only  ;£^625,ooo  more  in  money  at  ;^965,58o, 
and  the  total  applications  to  date,  viz.,  1,058,466,  have 
produced  only  ;^"26, 249,000,  which,  added  to  the  Bank 
of  England  issue  raises  the  aggregate  proceeds  of 
National  War  Bond  sales  to  ;£^682,o83,ooo.  To  this  we 
must  add  the  proceeds  of  the  sale  of  War  Savings  certi- 
(icates.  These  were  rather  good  in  the  same  week, 
ended  the  13th  inst. ,  totalling,  as  they  did,  4,777,414. 
Adding  these  to  the  previous  figures,  we  get  a  total  of 
183,143,430  War  .Savings  certificates  sold.  In  money 
this  is  equivalent  to  about  ;^i  37,000,000  paid  into  the 
Treasury,  consequently  the  Exchequer  resources  have 
been  increased  by  ;^8 19,000,000  through  these  various 
means,  and  the  more  or  less  fixed  debt  by  ;^765,ooo,ooo. 
That  looks  fine,  but  our  deficit  for  the  current  Budget 
year,  after  all  the  proceeds  of  new  taxes  have  been  taken 
into  account  to  the  full  estimated  value  of  their  yield,  is 
expected  to  exceed  ^2,000,000,000.  Surely  something 
more  energetically  wealth-tapping  is  necessary  if  the 
country  is  to  be  saved  from  a  most  disagreeable  state 
of  affairs  when  the  war  does  come  to  an  end. 


How  are  we  to  borrow  this  ;^2, 000,000, 000  odd 
during  the  current  year?  Were  our  various 
peddling  forms  of  debt  creation  to  be  whipped 
up  to  produce  ;^30,ooo,ooo  a  week  on  the  average, 
we     should     still     be     nearly     ;^soo,ooo,ooo     to    the 


bad  at  the  end  of  the  year,  and  they  give  no 
indication  of  capacity  to  produce  anything  like 
;£r30,ooo,ooo  per  week.  It  is  plain,  indeed,  that 
not  all  the  skill  in  advertising  and  ingenuity  in  devising 
sen.sations  suffice  to  bring  the  bulk  of  the  nation  to  an 
understanding  either  of  its  peril  or  of  its  duty  in  the 
matter  of  saving  and  lending,  and  a  large  proportion  of 
those  now  made  richer  than  they  ever  before  were  in 
tlieir  lives  through  the  expenditure  of  this  borrowed 
money  are  doing  next  to  nothing  towards  helping  the 
country  in  its  extremity  with  their  spare  money.  There 
might  be  some  attraction  found  for  subscribers  to  the 
War  Savings  certificates  if  people  would  get  rid  of  cant 
and  superstition,  so  as  to  be  able  to  deal  with  affairs 
in  a  plain  businesslike  fashion.  How  much,  for  example, 
docs  the  Exchequer  save  by  not  paying  interest  on  these 
certificates  until  the  end  of  five  years,  assuming  that 
they  are  not  sent  in  for  redtemptiori  in  the  interval?  It 
must  be  .something  considerable,  something  that  would 
be  enough  basis  for  the  offer  of  prizes  to  the  local  com- 
mittees who  showed  most  efficiency  in  raising  the  total 
subscribed.  We  only  ask  the  question,  and  make  no 
recommendation  because  it  is  useless  to  talk  to  those  in 
charge  of  our  financial  interests  while  their  minds  are 
pre-occupied  with  pious  fancies.  One  of  these  days  they 
will  wake  up  in  a  hurry,  and  rush  into  measures  that 
but  yesterday  they  scorned. 

Revenue  showed  a  faint  tendency  to  improve  last 
week,  the  total  receipts  from  taxation  and  State  mono- 
polies having  been  ^^i  1,350,000,  of  which  _;^7,o68,ooo 
was  provided  by  income-tax  with  super-tax  and  the 
excess  profits  duties,  but  the  total  expenditure  of  the 
week  on  current  account  was  ;^'67, 149,000,  or 
_£,"9, 593,000  per  diem.  On  Supply  services  alone,  that 
is  to  say  principally  on  our  fighting  forces,  the  outlay 
was  ;^65, 000,000,  or  ;^g, 286,000  a  day,  which  compares 
with  ;^3, 752,000  the  previous  week,  so  the  actual  re- 
venue went  but  a  little  way  towards  meeting  the 
current  expenses,  and  these  were  supplemented  by  other 
payments  incident  to  the  credit  requirements  of  the 
Treasury.  Thus  ;^72, 130,000  of  Treasury  bills  had  to 
be  paid  off,  this  amount  including  "  part  payment  of 
bills  and  certificates  tendered  as  subscriptions  to 
National  War  Bonds,"  a  useful  reminder  always, 
which  should  prompt  some  M.P.  to  extract  from  th« 
Chancellor  of  the  Exchequer  an  exact  account  of  what 


404 


the  investors'  IReview. 


Aprii.  27,  1918. 


our  oddments  of  war  debts  are  really  producing  in  the 
way  of  new  cash.  How  much  of  the  ;^682, 000,000 
set  down  against  National  War  Bonds  is  represented 
by  actual  cash  paid  in?  Besides  Treasury  bills 
;^75 1, 000  of  War  Loan  and  other  bonds  were  cancelled 
'*'^d  ;^5,8oo  of  War  lilxpenditure  certificates,  together 
w'th  ;^3>45J.ooo  due  under  "  other  war  debt."  Alto- 
gether, therefore,  the  total  payments  of  the  week  came 
to  ;^  143,649,000,  and  as  the  total  revenue,  including 
;^73>658,ooo  of  new  Treasury  bills  issued,  ;^3,ooo,ooo 
received  from  War  Savings  certificates,  ;^24,236,ooo 
obtained  from  other  war  debt  sources,  that  is  to  say 
from  America,  ;^"i  1,994,000  nett  proceeds  of  National 
War  Bond  sales  paid  in,  and  ;^i8,ooo,ooo  raised  on 
call  loan  or  "  ways  and  means  "  advances,  was  only 
;^i42,3o8,ooo,  it  followed  that  the  Exchequer  balances 
had  to  be  drawn  upon  for  ;^i,34i,ooo,  bringing  them 
down  to  ;£^i6,335,ooo.  A  year  ago  their  total  was 
;;£,24,405,ooo.  There  is  nothing  exactly  to  alarm  in 
this  exhibition  of  a  labouring  machinery  of  our  Trea- 
sury, but  it  does  indicate  stress  of  a  magnitude  bound 
to  grow,  and  which  the  Budget  provisions  do  much  less 
than  is  necessary  by  way  of  helping  to  ease  the  strain. 

In  his  Budget  speech  Mr.  Bonar  Law  contrasted  out 
position  with  that  of  the  German  Empire,  whose  rulers, 
he  said,  have  not  ventured  to  tax  Avealth,  and  conse- 
quently whose  Budget  makes  no  provision  whatever 
for  after-war  demands.  To  themselves,  or  at  least 
to  the  public  in  Germany,  this  absence  of  a  straight- 
forward facing  of  the  liabilities  brought  upon  the  Em- 
pire by  the  war  is  excused  by  a  parade  of  .indemnities 
to  be  exacted  from  the  vanquished,  but  that  only  makes 
the  position  more  hopeless  for  the  Hohenzollern  fabric 
of  Empire.  The  war  has  gone  on  so  long,  and  has 
eost  so  much,  that  "indemnities"  on  the  stupendous 
scale  required  have  become  impossible  of  exaction. 
Not  even  from  Russia  will  Germany  be  able  to 
exact  money  indemnities.  All  that  can  be  wrung 
from  the  peasantry  of  that  betrayed  empire  is 
such  plunder  of  food  and  raw  materials  as  may 
be  within  reach,  and  its  collection  will  cost  the 
thief  more  than  it  is  worth.  As  for  the  Allies 
of  the  free,  there  is  no  probability  that  the  Prussian 
brutes  and  their  miserable  hordes  of  Paraguayan- 
minded  slaves  will  ever  be  in  a  position  to  extract  a 
farthing  from  any  of  them  in  the  way  of  robbers' 
plunder  called  "indemnity."  But  that  fact  also  em- 
phasises only  the  more  strikingly  the  habits  of  bluff  and 
of  impudent  pretence  which  characterise  so  habitually 
the  behaviour  of  Hohenzollern 's  tools.  Look  at  the 
.scheme  of  new  taxation  paraded  a  little  more  than  a 
week  ago  by  the  German  newspapers.  We  gave  the 
figures  last  week,  and  the  items  totalled  up  to 
^158,000,000.  One  may  well  wonder  where  the  money 
is  to  come  from.  How  are  spirits,  for  instance,  to  be 
made  to  produce  ;^42, 500,000  of  additional  revenue 
even  when  made  a  monopoly,  when  there  is  no  grain 
in  the  country  to  distil  them  from?  And  will  beer  give 
another  ;^i7,ooo,ooo,  no  matter  how  it  is  taxed,  when  it 
also  cannot  be  brewed  for  want  of  hops  and  grain? 
ColTee,  tea,  cocoa,  and  chocolate  are  put  down  to  pro- 
duce ;^3,75o,ooo  more  money,  but  do  they  grow  coffee 
in  Germany  or  any  of  these  other  substances?  If  not, 
we  fear  the  parade  of  fresh  revenue  is  here  also  a  de- 
rision. But  it  is  all  of  a  piece  with  the  Prussian  code 
of  morals  :  "  Lie  always  if  the  lie  the  better  serves  the 
immediate  purpose ;  and,  by  controlling  all  channels  of 
information,  take  care  that  the  lie  is  not  found  out,  at 
least  not  too  soon." 


Is  this  latest  German  loan  any  more  real  than  the 
German  Budget?  It  is  heralded  as  a  tremendous  suc- 
cess, the  eighth  such,  and  the  amount  it  has  produced 
is  said  to  be  ;^727, 500,000  on  the  basis  of  the  normal 
exchange.  That  sum,  moreover,  does  not  include  the 
amount  of  former  War  Loans  converted  into  this  new 
one,  nor  the  additional  subscriptions  from  the  public  and 
from  the  army.  Who  has  found  the  money,  then? 
Banks  and  armament  firms  are  said  by  the  Frankfurter 
Zeitimg   to  have   subscribed   "liberally,"  but  private 


persons  have  given  less.  More,  however,  has  come 
from  the  agricultural  interests,  which  alone  among  the 
people  could  afford  to  pay.  How  much  of  the  .so-called 
money  is  merely  a  transformation  of  debts  due  by  the 
Government  which  it  could  not  pay  into  the  long  post- 
dated promi.s.sory  notes  of  this  .^ame  bankrupt  Govern- 
ment? What  does  Germany  possess  in  the  way  of 
unmortgaged  wealth  to  subscribe  with?  .Are  there  any 
industries  in  Germany  producing  wealth  other  than 
those  connected  with  the  destruction  of  property  every- 
where ? 

We  have  often  declared  that  both  empires  are  bank- 
rupt beyond  hope,  and  that  is  the  simple  truth.  The 
destruction  of  wealth  in  Germany  has  proceeded  at 
such  a  pace,  and  has  endured  so  long,  that  were  the 
war  to  end  next  month,  Germany's  ruin  would  put  her 
out  of  the  running  for  equality,  let  alone  dominance, 
amongst  the  pioneer  nations  of  the  world  for  many 
generations.  And  Austria  and  Hungary  are  in  even 
a  worse  plight,  because  they  were  poorer  to  begin 
with,  and  because  the  Habsburg  Empire  is  full  of  dis-. 
cordant  racial  elements  who  are  only  waiting  for  the 
hoary  tyranny  to  collapse  in  order  to  throw  ofT  for  ever 
the  burden  it  imposed.  Official  figures  have  been  pub- 
lished in  Vienna  which  show  the  war  debt  of  Austria 
alone  at  the  end  of  June  last  to  have  been 
/,  1,762,500,000,  taking  the  krone  at  its  old  gold  value. 
The  war  is  said  to  have  cost  .Austria  during  the  first 
year  ;^i, 208,000  a  day.  In  the  second  year  this  cost 
rose  to -j^' 1,708,000  a  day,  and  in  the  third  year  to 
;^2,042,ooo  a  day,  while  in  the  current  year  it  is  put 
at  ;^2, 500,000.  Austria's  total  debt  as  a  State,  there- 
fore, has  now  reached  an  aggregate  of  ;^2, 292, 000,000, 
involving  an  annual  charge  for  interest  of  ^^92, 292,000, 
and  what  has  Austria  got  to  pay  this  interest  with? 
Nothing,  except  the  estates  of  her  feudal  nobles  and  of 
the  Church.  As  for  Hungary,  we  do  not  know  what 
her  debt  is,  because  the  figures  have  never  been  made 
public,  but  on  the  basis  of  the  quota  contributed  by 
the  two  States  towards  the  maintenance  of  the  mili- 
tary establishment  of  the  Empire,  her  war  debt  alone 
must  now  amount  to  ;^  1,000,000,000,  and  Hungary 
has  nothing  at  all  to  meet  it  with,  outside  the  similar 
feudal  possessions  of  her  masters.  Will  the  bankers 
involved  in  the  Habsburg  ruin  foreclose  the  mortgage, 
realise  the  effects,  and  distribute-  the  proceeds  among 
the  creditors  of  the  State?  The  people  are  more  likely 
to  do  that  for  themselves  once  the  victory  of  the  Allies 
has  knocked  their  fetters  off.  We  shallget  our  "  in- 
demity  "  in  assisting  the  liberated  people  to  develop 
and  multiply  the  riches  lying  dormant  and  neglected 
in  their  tyrant-blighted  lands. 


We  hope  nothing  but  sympathy  will  be  felt  and  ex- 
pressed here  for  the  Dutch  in  their  present  dangerous 
position.  It  is  dangerous  because  the  unscrupulous- 
ness  of  the  Prussian  military  ghouls  increases  with  the 
imminence  of  their  defeat.  To  us  it  has  all  along  been 
a  wonder  that  the  Dutch  have  been  able  to  keep  the 
Prussian  claw  from  their  throats  for  so  long.  Had  it 
not  been  that  it  paid  the  Berlin  gang  to  abstain  be- 
cause by  doing  so  they  were  able  to  obtain  supplies 
from  abroad  otherwise  beyond  their  reach,  we  have  no 
doubt  that  Holland  would  long  ago  have  been  treated 
with  the  same  devilish  cruelty  as  Belgium.  .And  now 
it  is  quite  possible  that,  spurred  by  the  growing 
miseries  within,  Ludendorff  and  his  gang  may  be  seek- 
ing a  pretext  for  hostility  against  the  Dutch,  for  a  pre- 
text to  invade  and  steal.  If,  for  example,  they  could 
hope  to  free  the  mouth  of  the  Scheldt  from  neutral  con- 
trol by  picking  a  quarrel  with  Holland  and  declaring 
war  against  her,  we  may  be  sure  they  would  not  hesi- 
tate to  do  it.  Apparently  the  quarrel  now  being  forced 
upon  the  Dutch  Ministry  relates  principally  to  the  con- 
veyance of  sand  and  gravel  over  Dutch  railways  into 
Belgium,  but  where  so  many  friction  points  exist,  any 
pretext  would  do,  and  the  demand  that  the  railway 
from  Dusseldorf  to  Antwerp,  built  through  Holland 
by  a  Belgian  company  in  1874,  and  subsequently  taken 
over  hv  the   Dutch   State   Railwavs,   should   be  made 


April  27,   1918. 


CTbe  Jnveetore'  IReview* 


405 


available  for  German  transport,  can  only  be  regarded 
as  just  the  kind  of  instrument  wanted.  Germany 
wishes  irafRc  to  be  resumed,  and  free  on  that  line, 
which  Holland  had  stopped,  acting  loyally  as  a  neutral. 
The  Netherlands  Government  apparently  is  not  object- 
ing to  reopen  the  road,  only  stipulating  that  the  line 
must  not  be  employed  for  any  kind  of  military  trans- 
port, but  that  proviso  itself  will  probably  be  regarded 
as  an  insult  by  the  overweening  Prussian,  and  unless 
something  comes  to  divert  his  mind  towards  other 
coveted  booty,  it  looks  likely  enough  that  Holland  may 
find  herself  in  Prussian  clutches.  What  ought  our 
attitude  to  be  in  such  a  case?  It  ought  to  be  one  of 
sympathy,  of  concession,  and,  as  far  as  possible,  of 
support.  We  should  press  no  claim  up>on  the  Dutch 
which  can  be  avoided,  and  certain  we  are  that  our 
Government  will  take  this  course  and  avoid  even  to  its 
own  apparent  hurt  anytBing  resembling  the  arrogant 
dictation  of  the  Prussian.  Moreover,  prompt  steps 
must  be  taken  to  let  Prussia  and  the  world  know  th;.l 
the  Allies  will  hold  Germany  responsible  to  the  utter- 
most for  any  injury  done  to  the  Dutch,  and  that  mean- 
while aggression  will  be  met  by  unsparing  retaliation. 


That  too  clever  by  half  Prussian  sophist  and  banker, 
Herr  Helfferich,  has,  it  would  seem,  been  fulminating 
against  England  at  Stuttgart,  and  after  talking  about 
"  Germany^s  good  conscience,"  proceeded  to  indulge  in 
the   customary    abuse    of    this   country.        The    matter 
would   be  of  no    importance    whatever,    and   is  worth 
precious  little  notice  now — except  that  it  is  well,  per- 
haps, to  point  out  once  more  the  brazen  misrepresenta- 
tion with  which  the  abuse  of  this  country  and  the  mis- 
representation of  its  motives  for  entering  the  war  are 
sustained.      It  is  England,  according  to  this  malignant 
spirit,  who  has  brought  about  the  war.      It  was  Eng- 
land's jealousy,  and  so  forth,  and  "  just  as  in  the  war 
of  the  Spanish  Succession,  the  Seven  Years  War,  and 
the  Napoleonic  Wars,   England  let  the  peoples  of  the 
Continent   bleed,    enemies   and   allies   alike,    while   she 
herself  went  out  on  the  sea  and  beyond  the  seas  for 
robbery  and  conquest,"  so  in  this  war,  in  addition  to 
the   Russians,     French,    and     Belgians,     England    has 
thrown      at      our      [Prussian]      heads      the      Italians, 
Rumanians,     Portuguese,     and    Americans,     "  to    say 
nothing  of  the  coloured  representatives  of  civilisation 
from  all  the  continents."     At  the  same  time,  she  has 
seized  "  our  almost  defenceless  colonies,"   and  forced 
her  way   into   Palestine    and    Mesopotamia,    and    has 
established  herself  in  Persia.      France  and  Italy  have 
lost    valuable     provinces,     so    have     Russia,     Serbia, 
Rumania,    Montenegro,   and   Belgium,    they   have  col- 
lapsed, indeed,  "  but  no  enemy  foot  stands  on  British 
soil."     There  is  much  more  of  the  same  trash,  all  de- 
signed to  sow  trouble  among  the  Allies,  to  mislead  the 
people  of  Germany  and  to  blacken  us.     It  is  so  pene- 
trated with   falsehood  that  one   stands  aghast  to  find 
any  man  claiming  to  be  worthy  of  respect  amongst  his 
fellow-men  capable  of  stooping  to  concoct  and  proclaim 
falsehoods  so  palpable.     Whose  fault  is  it  that  we  have 
been  able  to  gather  so  many  friends  around  us  to  fight 
the   Prussian   enslaver  and   tyrant?     Was   it   we   that 
sent  the  legions  of  the  Hohenzollern  into  Belgium,  into 
Northern   France?       Let  Litchnowsky  answer.        "  If 
England  has  her  way,"  the  man   Helfferich  goes  on, 
"  we   shall   find   abroad   after   the   war   not   one    stone 
upon  another,  and  no  ground  left  upon  which  we  can 
rebuild.     Once  and   for  all  we   shall  be   roped   in  and 
bottled  up   on   the  Continent,   and  so  we   shall   finally 
find  our  modest  place  in  the  system  of  British  world- 
domination."     Probably    his    forecast   is  accurate,  but 
whose  fault  is  it?     He  says  it  is  ours.     But  can  such 
falsehood  really  much  longer  beguile  and  reconcile  the 
miserable  and  perishing  German  p)eople  to  their  losses? 
No  doubt  it  is  to  their  own  leaders  that  they  will  owe 
their  ostracism,  not  to  us,  as  they  are  even  now  Tinding 
out. 


generous.  His  lordship  deserves  sympathy  and 
respect,  anything  but  abuse,  and  the  fact  that  he  has 
lost  two  sons  in  this  war  should  alone  dictate  the  keep- 
ing of  silence  on  the  part  of  those  who  cannot  feel  it 
in  them  to  say  a  good  word  for  the  minister  who  has 
now  resigned.  Surely  one  need  not  be  suspected  of 
sympathy  with  Harmsworthian  practices  in  journalism 
because  one  ventures  to  say  that  Lord  Rothermere 
must  have  worked  as  effectively  as  he  worked  hard  at 
his  by  no  means  easy  post.  He  long  ago  proved  him- 
self to  be  an  able  man  in  business,  and  we  see  no 
reason  whatever  to  think  that  when  he  joined  the 
Government  he  proved  anything  other  than  a  valuable 
public  official  whose  services  the  nation  can  i'l  afford  to 
lose.  That  he  should  have  had  to  meet  friction  and  to 
bear  the  obloquy  of  resignations  amongst  the  military 
chiefs  under  him  is  to  our  thinking  rather  a  testimony 
to  his  value  as  a  man  of  character  and  determination 
than  a  ground  for  sneers  and  complaint.  After  all, 
the  Harmsworth  family  has  distinguished  itself  more 
than  any  other  in  its  encouragement  and  advocacy  of 
the  conquest  of  the  air.  Lord  Northcliffe  himself  has 
from  the  first  stood  out  as  one  of  the  most  generous 
of  pioneers  in  this  new  field  of  man's  conquest  over 
the  forces  of  nature  and  immemorial  prepossessions, 
and  the  opinions  and  policy  of  his  brother  could  hardly 
fail  to  be  on  many  points  more  enlightened  and  com- 
prehensive than  those  of  the  men  in  uniform  under 
him.  We  hope  he  will  soon  be  well  again,  and  able 
to  resume  work. 


Gross  profits  earned  by  the  London  and  Brazilian 
Bank,  Ltd.,  in  the  year  to  January  31  rose  ;^'70,ooo 
to  ;^57i,56o,  while  expenses  were  ;^,'34,ooo  higher  at 
^289,300.  Taxes  at  home  and  abroad  were  rather 
less  at  _£^43,70o,  and  with  a  somewhat  larger  amount 
brought  in  the  available  (balance  is  ;^39,ooo  up  at 
;£"537,400,  out  of  which  a  dividend  of  14  per  cent,  and 
a  bonus  of  2  p)er  cent,  are  again  paid,  while  ;^25,ooo 
(new)  is  written  off  bank  premises  and  ;^i 2,000  is 
appropriated  as  a  bonus  to  the  staff.  There  then 
remains  ;^i,5oo  more  at  ^300,400  to  be  carried  for- 
ward. Current  and  deposit  accounts  have  increased 
;^76o,ooo  to  ;^9,368,ooo  and  bills  for  collection  are 
;£'i 40,000  up  at  ;£^3,288,ooo,  but  bills  payable  have 
fallen  ;^920,ooo  to  ;^2,6i8,ooo.  Cash  is  ;^58o,ooo 
down  at  ;^4,365,oc)o,  bills  receivable  are  ;^i,025,ooo 
lower  at  ;^i,955,ooo,  and  remittances  in  transit  are 
;£'250,ooo  down  at  ;^i,  168,000,  but  loans,  &c.,  have 
increased  ;^i,665,ooo  to  ;^8, 125,000.  The  nett  result 
of  these  changes  is  that  the  balance-sheet  total  is  a 
trifle  less  at  ;^i 9,228,000,  and  we  should  judge  that 
the  p>eriod  has  been  a  trying  one  for  business,  although 
profits  were  larger.  It  is  announced  that  an  agency 
has  been  opened  in  Manchester  in  combination  with 
Williams  Deacon's  Bank,  Ltd.  No  provision  for 
depreciation  has  had  to  be  made  in  respect  of  capita! 
employed  in  South  America. 


It  may  be  good  party  journalism  to  cast  gibes  at 
Lord  Rothermere  on  his  resignation  of  the  post  of 
Aircraft    Minister,   but    it    is    not   fair   play,   less    still 


Evidence  of  the  prosperity  at  present  being  enjoyed 
in  the  Land  of  the  Pharaohs  is  furnished  by  the  report 
of  the  National  Bank  of  Egypt.  In  1916  gross  profits 
increased  ;£r2 17,000,  and  this  is  followed  by  a  further 
gain  of  ;^i42,ooo  last  year  bringing  the  total  up  to 
^'767,000.  Expenses  rose  ;^i8,ooo  to  ;£,2 14,200,  but 
only  ;£^33,6oo,  or  ^'82,000  less,  had  to  be  allowed  for 
depreciation  of  securities,  and  the  nett  profit  comes 
out  ;^2o6,ooo  to  the  good  at  £s^9y^S'^-  This  allows 
of  the  dividend  being  raised  from  6  per  cent,  to  8 
per  cent.,  and  after  placing  ;^20o,ooo,  against 
;^8o,ooo,  to  special  reserve,  the  carry  forward  is  in- 
creased by  ;^27,c>oo  to  ;^4g,5Cio.  A  further  expan- 
sion of  ;£,9,6oo,ooo  has  taken  place  in  the  note  circula- 
tion, following  a  similar  advance  last  year,  and  the 
total  issue  is  now  ;£'30,8oo,ooo,  covered  as  to 
;£r3, 860,000  by  gold,  and  .the  balance  by  Treasury  bills 
and  other  Government  securities.  Current  accounts 
are  up  ;^3, 400,000  at  ;^i2,027,ooo,  and  the  Egyptian 
Government      deposit      is      ;£'2, 140,000      higher      at 


4o6 


Zbc  5nve6tor6'  IRevtew. 


April  27,  1918. 


;£,"«,  1 28,coo.  Investments  have  increased  ^'2,400,000 
to  ^'8,i22,cwo,  advances  on  merchandise  ;^'2,(xx),ooo 
to  ;^'4,557)<x>o>  other  advances  ;£,^i,  100,000  to 
;^'i,736,ooo,  short  loans  ;£i^825,ooo  to  ;£,'2, 2 50,060,  and 
bankers'  accounts  _;^"6oo,ooo'  to  ;£,' 1,6 13,000,  but  cash 
is  ;^640,ooo  lower  at  ;^  1,358, 000.  The  balancc-shc'ct 
totals  at  ;£,"28,025,ooo,  an  increase  of  ;£.6, 400,000,  and 
everything  looks  flourishing-. 


Although  Ital)  's  foreign  commerce  has  been  greatlj' 
restricted  owing  to  the  war,  the  well-managed  and 
progressive  Credito  Italiano  did  a  magnificent  business 
last  year.  Deposit  and  current  accounts  increased  540 
millions  to  1,557  million  lire,  acceptances  10  millions 
tu  54,436,000  lire,  cheques  outstanding  17  millions  to 
50,224,000,  and  sundry  creditors  seven  millions  to 
39,376,000.  On  the  assets  side,  cash  increased  50 
millions  to  165, 100,000  lire,  bills  receivable  280  millions 
to  1,071  millions,  advances,  &c.,  253  millions  to 
478,640,000,  loans  12,700,000  to  49,830,000,  invest- 
ments, &c.,  2,300,000  to  21,161,000,  and  sundry  debtors 
1 1  millions  to  24,740,000.  .Mtogother  the  total  of  the 
balance-sheet  is  617  millions  higher  at  1,887,055,000 
lire.  As  a  consequence  of  the  expansion  which  these 
figures  indicate  nett  profits  rose  6,400,000  to  13,930,000 
lire,  and  the  dividend  is  raised  from  6  per  cent,  to 
7  per  cent. ,  while  3^  millions  more  at  6,000,000  lire  is 
placed  to  reserve  fund,  increasing  it  to  21  millions,  and 
the  carry  forward  is  only  a  trifle  less  at  145,000  lire. 
It  is  a  flourishing  statement  at  all  points,  and  the  bank 
has  established  a  position  which  is  likely  to  de\elo]) 
still  further  when  normal  conditions  arc  restored. 


A  satisfactory  history  of  the  progress  of  British 
Dyes,  Ltd.,  has  been  made  public  this  week.  The  com- 
pany was  started  under  Government  patronage  and 
impulse  in  1915,  and  began  by  buying  the  works  of 
Read,  HoUiday  and  Sons,  of  Huddersfield,  a  transac- 
tion much  criticised  at  the  time.  The  new  company, 
indeed,  has  met  with  a  good  deal  of  hostile  attention 
all  through  its  career,  and  its  success  is  all  the  more 
creditable  to  those  who  have  had  to  face  that  criticism 
and  overcome  many  obstacles.  .\s  yet,  apparently,  the 
company  does  not  produce  a  great  variety  of  market- 
able dyes,  but  in  spite  of  the  scarcity  of  labour  and 
materials,  it  has  made  distinct  progress  in  the  produc- 
tion of  intermediate  products  necessary  to  the  evolution 
of  the  dyes  of  commerce,  and  that  is  something  to  take 
credit  for.  Large  plants  for  the  manufacture  of  about 
a  hundred  intermediate  products  of  prime  importance 
have  been  created,  and  the  company  is  now  manufactur- 
ing many  of  these  produ<"ts  on  a  commercial  scale. 
From  that  stage  it  is  proceeding  with  the  erection  of 
plants  to  turn  out  the  dyes  themselves,  and  this  is  said 
to  be  a  much  less  cosTly  affair  than  the  provision  of 
plants  for  the  output  of  intermediate  substances.  .'\ 
dye-making  factory,  it  is  explained,  requires  not  only 
the  necessary  chemical  plant,  but  also  large  installations 
for  providing  services  for  high  and  low  pressure,  steam, 
electricity,  power  gas,  compressed  air,  &c.,  and  the 
setting  up  of  the  necessary  plant  has  been  a  very  diffi- 
cult piece  of  business  to  carry  out  under  present  con- 
ditions. But  it  has  been  carried  out  seemingly,  and  the 
company  is  solidly  established.  It  has  a  large  staff  of 
experts,  and  the  chairman,  Mr.  J.  P^alconer,  M.P. ,  and 
three  of  the  directors  meet  weekly  at  the  factory  and 
work  in  close  co-operation  with  the  managing  director. 
Research  is  supervised  by  a  research  council,  which 
comprises  certain  University  professors  and  technical 
officers  of  the  company.  Moreover,  in  the  two  years 
now  complete  the  company  has  earned  enough  to  pay 
the  interest  on  its  debentures  and  the  maximum  dividend 
of  6  per  cent,  permitted  to  be  paid  on  its  ordinary  shares 
by  the  articles  of  association.  In  its  first  year,  also, 
it  wrote  ;£'20o,ooo  off  cost  of  construction,  and  may  be 
able  to  do  more  out  of  its  second  year  of  profits  when 
the  accounts  have  been  examined  and  passed  "  after 
deciding  what  the  company's  liabilities  are  under  recent 
financial  measures."  A  number  of  Press  representa- 
tives were  afforded  an  opportunity  of  visiting  the  works 
a  week  ago,  and  had  matters  explained  to  them  by  the 


works  manager,  Mr.  Joseph  Turner,  one  of  the  direc- 
tors. .After  seeing  what  was  to  be  seen  they  met  the 
chairman,  Mr.  Falconer,  at  lunch.  He  told  them  that 
it  was  by  the  manufacture  of  intermediates  that  the 
Germans  had  been  able  to  keep  dye  manufacturing  to 
themselves.  As  the  Briti.sh  Dyes,  Ltd.,  has  made  .such 
progress  in  this  branch  of  manufacturing,  Flngland 
.should  now  be  independent  of  German  supplies.  There 
were  just  over  200  such  colours.  There  may  be  one  or 
two  the  Germans  had  made  which  had  not  been  pro- 
duced in  commercial  quantities  here  yet,  but  if  one  could 
master  intermediates  one  could  produce  colours.  There 
was  nothing  to  justify  those  who  were  faint-hearted,  for 
the  company  had  succeeded  in  establishing  a  suf>ply  of 
dyes  which  would  compete  with  Germany  in  other  parts 
of  the  world.  He  believed  they  had  the  raw  materials 
and  the  necessary  .st;ientific  men  for  successful  experi- 
ments. Altogether  it  was  a  hopeful  address,  and  the 
record  is  thus  far  full  of  encouragement. 


It  has  only  now  been  possible  for  the  bondholders' 
committee  of  the  Algoma  Central  and  Hudson  Bay 
Railway  Company  and  of  the  Algoma  Central  Terminals, 
Limited,  to  present  accounts  for  the  three  years  to 
June  30  last.  The  history  of  these  offshoots  of  the 
Lake  Superior  Corporation  group  is  not  a  pleasant  * 
one,  but  the  time  is  past  for  recriminations,  and  all 
that  can  be  done  now  is  to  make  the  best  of  a  bad  job. 
A  certain  amount  of  progress  is  being  made,  but  the 
committee  give  it  as  their  considered  opinion  that 
without  extensive  and  costly  development,  the  earn- 
ings of  the  companies  will  not  be  sufficient  to  meet 
the  interest  charges  of  the  existing  bond  issues. 
Under  the  scheme  of  arrangement  the  Terminals  bond- 
holders are  entitled  to  3  per  cent,  per  annum  (cumula- 
tive) out  of  the  joint  nett  earnings  before  anything  is 
paid  to  the  bondholders  of  the  railway  company,  and 
payment  has  been  arranged  of  the  coupons  up  to 
June  30  last,  leaving  a  sum  of  $291,600  in  arrear. 
There  is,  however,  a  balance  in  hand  of  $114,400 
available  for  distribution  equally  over  the  whole 
bonded  debt  of  the  two  companies,  but  as  this  repre- 
sents less  than  i  per  cent.,  it  is  proposed  to  carry  the 
amount  forward.  (Jross  earnings  last  year  amounted 
to  81,684,000,  an  increase  of  $560,000,  and  the  nett 
earnings  were  $282,000,  an  increase  of  $120,000, 
hut  there  is  an  accumulated  deficiency  of 
$2,924,CKX>  in  respect  of  the  railway  bonds,  and 
the  outlook  is  not  very  encouraging.  Traffics  are 
steadily  improving,  and  the  increase  of  15  per  cent. 
in  rates  as  from  March  15  will  help,  but  unfortunately 
expenses  also  are  advancing  rapidly,  and  not  much 
advantage  can  be  expected  under  existing  conditions. 
On  the  other  hand,  the  Lake  Superior  Corporation, 
which  guaranteed  the  lx)nds  of  the  two  companies,  has 
been  doing  much  better  recently,  and  some  payment 
under  the  guarantee  is  expected  shortly.  The  Com- 
mittee's statement  is  a  full  and  frank  one,  and  the 
bondholders'  interests  are  in  as  good  hands  as  could 
be  wished,  but  they  cannot  accomplish  impossibilities. 


It  is  announced  that  the  adjourned  annual  general 
meeting  of  Baldwins,  Limited,  will  be  held  on  May  2, 
when  the  accounts  for  the  year  to  June  30  last  will 
be  submitted.  They  could  not  be  completed  in  time 
for  the  regular  meeting  last  October,  but  the  usual 
dividend  and  bonus,  making  12^  per  cent.,  tax  free, 
for  the  year  was  declared,  and  no  hope  was  enter- 
tained that  there  would  be  any  further  payment.  And 
so  it  turns  out.  Nett  profits,  in  fact,  were  ;£r3,ooo 
less  at  ;^3i3,ooo,  but  no  doubt  the  provision  for  excess 
duty  and  special  depreciation  took  a  considerably 
larger  sum,  and  it  is  evident  that  the  works  have  been 
kept  going  at  full  pressure.  The  amount  brought  in 
was  ;^."47,ooo  larger,  and  after  again  placing  ;^''75,ooo 
to  reserves,  the  balance  forward  is  ;£i^24,ooo  up  at 
£'157,000.  During  the  year  £^265, 000  nett  was  spent 
on  new  additions  to  property  and  plant,  investments 
increased  ;^54o.ooo  to  ;£' 1,097, 000,  and  cash  ;^385,ooo 
to  ;^753,ooo,   while  ;£r43o.ooo  more  at  ;{?  1,164,000   is 


April  27,  1918. 


Zbc  Jnvestocs'  IReview, 


407 


•owed  to  sundry  creditors.  Following  a  practice  which 
is  becoming  very  general,  it  is  proposed  to  capitalise 
part  of  the  reser\es  by  creating  310,165  new  ordinary 
shares  of  ;£;i  each,  which  will  be  distributed  as  a 
bonus  in  the  proportion  of  one  new  for  every  four  old 
shares  held.  In  order  to  meet  the  capital  requirements 
of  the  company  it  is  also  proposed  to  offer  ordinary 
-shares  for  subscription  at  the  price  of  2-;s.  in  the  pro- 
portion of  one  new  for  every  old  share  held  (including 
the  bonus  shares),  which  will  have  the  effect  of  in- 
creasing the  ordinary  capital  to  ^i'3, 100,000.  The  con- 
sent of  the  Treasury  to  the  issue  has  Ijeen  obtained, 
and  we  do  not  suppose  the  shareholders  will  raise  any 
objection.  A  controlling  interest  has  been  secured  in 
the  Brymbo  Steel  Co.,  Limited,  the  price  paid  being 
20  ;£.  1    Bald\\  in  for  each  ;£,io   Brymbo  share. 


Conditions  have  again  proved  unfavourable  for  the 
Argentine  Tobacco  Co.,  Ltd.,  and  the  gross  profits  to 
October  31  show  a  decline  of  £^7>„<xxy  at  ^'275,800. 
By  strict  economy  expenses  were  reduced  ;£,  17,000,  and 
the  nett  profit  before  charging  depreciation  is  only 
£,28,000  down  at  £'i  12,550..  In  order  to  provide  for  the 
repayment  at  105  per  cent,  of  ;^"i  10,400  debentures 
drawn  for  redemption  on  November  i  last  £"3,370  is 
transferred  from  reserve  for  contingencies,  making  up 
the  total  to  £.115,920.  Premium  on  the  debentures 
requires  £."5,520,  and  £30,400  is  set  aside  for  deprecia- 
tion, and  £."80,000  is  applied  in  reduction  of  goodwill. 
In  spite  of  ad\erse  conditions  in  Argentina  and  the  high 
cost  of  materials  the  position  is  improving.  Debentures 
repayable  b\  next  year  are  brought  down  to  the  man- 
ageable dimensions  of  £'243,000,  and  after  they  are  out 
of  the  way  the  preference  shareholders  will  begin  to  get 
their  di\idend  arrears  wiped  off. 


The  British  (iovernment  has  entered  into  a  new 
contract  with  the  Commonwealth  Government  with 
regard  to  the  .A-Ustralian  production  of  zinc  concen- 
trates. Two  years  ago  a  tx>ntract  was  made  under 
■which  the  Imperial  Covernment  undertook  to  purchase 
100,000  tons  per  annum  until  10  years  after  the  war, 
and  also  45,000  tons  of  Australian  produced  spelter. 
This  arrangement  ensured  that  of  the  400,000  tons  of 
•concentrates  produced  annually  in  ./Vustralia,  chiefly  iit 
Broken  Hill,  about  250,000  tons  would  be  treated  within 
the  fimpire.  This  contract,  which  in\ol\ed  a  total  of 
something  like  25  millions  sterling,  however,  was 
found  to  require  some  amendment.  A  fresh  agreement 
has  therefore  been  entered  into  which  provides  for  the 
purchase  by  the  Imperial  Government  of  all  the  con- 
centrates produced  in  .Australia  for  a  period  ending 
10  years  after  the  conclusion  of  peace.  This  involves 
a  considerable  extension  of  the  scope  and  importance 
of  the  old  contract,  for  it  will  give  Great  Britain  the 
control  of  material  which  Before  the  war  went  to 
Germany,  and  was  a  powerful  factor  in  the  control 
which  the  Metallgcsellschaft  exercised  over  the  .spelter 
markets  of  the  world.  It  is  stated  that  the  special 
interests  of  Belgian  and  French  smelters  have  been 
given  adequate  protection.     Xaturallv  the  Broken    Hill 


companies  will  benefit  from  this  new  scheme,  which, 
to  say  the  least,  ought  to  ensure  a  profitable  future  for 
its  great  zinc  concentrate  producing  industry. 

The  report  of  the  East  Rand  Proprietary  Mines  for 
1917  is  a  very  gloomy  dociiment.  Fiver  since  the  dis- 
closures of  1911  the  mine  has  gone  steadily  down  hill 
owing  to  the  decreasing  value  of  the  ore  in  the  mines, 
which  has  been  as  persistent  as  it  has  been  startling. 
The  tonnage  milled  in  1917  was  1,741,300  tons,  a 
further  decrease  of  176,700  tons,  while  the  yield  de- 
clined by  2s.  6d.  to  21s.  iid.  per  ton.  Working  costs 
were  6d.  higher  at  19s.  gd.,  and  consequently  the  work- 
ing profit  was  reduced  from  5s.  2d.  per  ton  to  2s.  2d. 
The  nett  profit  shows  a  reduction  of  no  less  than 
£^256,420  at  £"108,100,  following  a  decrease  of 
£150,426  in  1916,  and  of  £"127,636  in  1915.  Share- 
holders get  nothing,  against  2J  per  cent,  in  1916,  and 
45  per  cent,  in  the  early  days  of  the  amalgamation. 
The  carry  forward  is  reduced  from  ;^3i5,i69  to 
£'252,930.  Development  suspense  account,  represent- 
ing funds  available,  amounts  to  £^322, 853,  against 
£^357, 566.  Capital  expenditure  amounted  to  £208,077. 
Reserves  of  ore  have  decreased  from  4,200,000  to 
2,732,000  tons,  valued  at  6.2  dwts.  per  ton.  To  carry 
out  the  exploitation  of  the  southern  area  and  to  con- 
tinue ordinary  development,  as  decided  upon  early  last 
year,  it  was  necessary  to  produce  sufficient  profits  to 
meet  fixed  charges.  This  policy  depended  upon  three 
conditions,  which  unfortunately  were  not  fulfilled  :  an 
adequate  labour  supply,  no  further  rise  in  costs,  and 
the  disclosure  of  a  reasonable  proportion  of  payable 
ore.  Only  424,625  payable  tons  were,  in  fact,  de- 
veloped, against  1,018,022  tons  mined  from  the  ore 
reserves.  The  policy  decided  upon  early  in  the  year 
had  therefore  to  be  modified  in  the  autumn.  In  his 
rep)ort  the  consulting  engineer  states  that  efforts  to 
discover  payable  ore  in  the  large  area  east  of  the  Cason 
section  met  with  no  success.  Difficulty  is  being  ex- 
perienced in  obtaining  sufficient  payable  stope  faces  to 
keep  up  the  supply  of  ore  for  the  mill.  This  difficulty 
will  increase,  and  is  bound  to  have  an  adverse  effect  on 
profits,  which  in  any  case  will  be  extremely  small.  It 
is,  in  fact,  regarded  as  doufitful  whether  for  igi8  the 
profits  will  be  sufficient  to  meet  current  liabilities.  It 
is  a  curious  fact  that  the  three  great  amalgamations  on 
the  Rand  have  failed  to  fulfil  the  expectations  originally 
formed  in  regard  to  them.  And  the  moral  of  it  is  that 
although  mining  on  a  large  scalejs  more  economical 
than  on  a  small,  prosperity  depends  less  upon  this  than 
upon  the  real  value  of  the  amalgamating  mines. 


The  Budget. 

Mr.  Bonar  Law's  second  Budget  is  on  a  much  more 
magnificent  scale  than  even  his  first,  and  although  he 
estimates  for  a  revenue  of  no  less  than  842  millions,  the 
principal  items  of  his  programme  have  been  accepted 
with  a  meekness  which  shows  that  the  country  is  pre- 
pared to  face  every  sort  of  sacrifice  in  order  to  get  on 
w  ith  the  main  task  of  beating  the  Hun,  both  militarily 
and  economically.      I-'or  many  months  past  'I  has  been 


TD. 


STANDARD  BANK  OF  SOUTH  AFRICA,  L 

Bankers  to  the  Government  of  the  Union  of  South  Africa  in  Cape  Province ;    lo  the  Imperial  Government  in  South  Africa  and  to  the  Administration 
,  of  Rhodesia. 

Subscribed  Capital    ...    £6,194,100     I     Reserve  Fund     £2,000,000 

Paid-up  Capital £1,548,525     |     Uncalled  Capital         ..     £4,645,575 


WM.  REIERSON  ARBUTHNOT,  1  sq. 
SIRDAVIDM.BARBOUR,  K.C.S.l.K.C.M.G. 
ROBERT  E.  DICKINSON,  Esq. 


Board     of      Directors. 

JAMES  FAIKBAIRN  FINLAV,  Esq.,  C.S.I. 
HORACE  PEEl,,  Esq. 
WILLIAM  SMART,  Esq. 


Rt.  Hon.  LORD  SYDENHAM,  G.C.S.t., 

G.C.M.G.,  G.C.LE.,  G.B.E. 
H.  L.  M.  TRITTON,  Esq. 


Head  Office:    10  CLEMENTS  LANE,  LOMBARD  STREET,  LONDON,  E.C.  4. 

New  York  Agency :— 68,  WALL  STREET,    Over  2SO  Branches  and  Agencies  in  South  and  East  Africa- 


EVERY  DESCRIPTION  OF  BANKING  BUSINESS  transacted  with 
the  Cape  Province,  Natal,  Oranga  I'rci;  State,  Transvaal,  Rhodesia, 
Nyasaland,  East  Africa  Profectorate,  Uganda,  Zanzibar,  Portuguese 
EastAfncr.South-WestAfrica  Protectorate,  and  the  Belgian  Congo 
and  with  the  Banks  Agencies  in  New  York  and  elsewhere. 

CURRENT  ACCOUNTS  are  opened  on  the  usual  terms. 

DEPOSITS  RECEIVED  for  Esed  periods  at  rates  which  may  be  ascer- 
tained on  application. 

BILLS  NEGOTIATED  AND  COLLECTED 


Till  officers  of  the  Bunk  are  bound  not  to  disclose  the  IraHsaclioiis  of  any  0/  its  customers. 


MAIL  AND  TELEGRAPHIC  REMITTANCES  made. 

LETTERS  OF  CREDIT  AND  DRAFTS  granted  on  the  branches  and 

Agencies  of  the  Bank. 
THE  BANK  ISSUES  C  RC    LAR  LETTERS  OF  CREDIT  available 

in  all  parts  of  the  world. 
COMMERCIAL  LETTERS  OF  CREDIT  ISSUED. 
PURCHASE  AND  SALE  OF  STOCKS  AND  SHARES  effected. 
DIVIDENDS,  ANNUITIES.  &c.,  received 
EXECUTOR  AND  TRUSTEE  Business  undertaken. 


FRANCIS  SHIPTON,  London  Manager. 


4o8 


^be  Jnvestore'  IReview. 


April  27,  1918. 


evident  that  Mr.  Law's  estimates  a  year  ago  would  be 
wide  of  the  mark  ;  while  revenue  was  substantially 
greater  than  he  anticipated,  the  expenditure  mounted 
up  at  a  rate  which,  it  may  be  frankly  admitted,  could 
not  have  been  foreseen.  It  was  laid  down  as  a  sound 
principle  by  Mr.  McKenna,  and  generally  accepted, 
that  the  very  least  the  Chancellor  of  the  Exchequer 
should  aim  at  was  to  provide  for  interest  and  sinking 
fund  on  the  war  debt,  together  with  a  suHicient  margin 
for  the  regular  peace-time  services.  Last  year's 
Budget,  in  the  result,  fell  considerably  short  of  this 
ideal,  and  consequently  everyone  was  prepared  for  a 
more  or  less  drastic  increase  in  taxation.  On  the 
whole,  Mr.  Bonar  Law  has  followed  well-established 
lines,  and  his  proposals,  as  a  rule,  have  met  with 
general  approval,  while  even  the  income-tax  payer  has 
got  off  rather  more  lightly  than  was  expected  in  many 
quarters. 

The  task  which  the  Chancellor  had  to  face  was  cer- 
tainly a  formidable  one.  Expenditure  for  the  current 
financial  year  is  estimated  at  the  huge  sum  of  2,972 
millions — a  figure  which  the  ordinary  mind  is  unable 
10  grasp  the  full  significance  of.  Debt  charges  alone 
are  put  at  ;^3 15,000,000,  civil  .services  (including  old- 
age  pensions  and  education)  will  require  ;^64,ooo,ooo, 
and  votes  of  credit  for  the  Navy,  Army,  and  Air  Ser- 
vices are  estimated  at  2,550  millions.  Ivevenue  on  the 
existing  basis  of  taxation  is  estimated  at  ;^774, 2 50,000, 
and  new  taxation  is  expected  to  produce  ;^67, 800,000, 
without  counting  anything  from  the  "  luxury  tax  "  of 
2d.  in  the  shilling,  the  details  of  which  have  not  yet 
been  settled.  This  is  the  only  novelty  which  Mr.  Law 
has  introduced.  It  will  be  based  on  the  French  model, 
and  it  is  probably  well  worth  trying,  not  only  with  a 
view  to  securing  revenue,  but  also  as  an  effort  to  cur- 
tail wasteful  expenditure.  Only  experience  will  show 
to  what  extent  it  succeeds  in  either  of  these  aims,  but 
financial  opinion  in  F'rance  is  by  no  means  unanimous 
about  the  virtues  of  tEe  tax,  and  if  it  requires  another 
army  of  officials  for  its  satisfactory  operation,  it  may 
well  be  that  the  game  is  scarcely  worth  the  candle.  The 
French  tax  is  estimated  to  yield  about  ;^24,ooo,ooo, 
and,  as  the  proi>osed  tax  here  is  to  be  over  16  per  cent, 
as  against  10  per  cent.,  Mr.  Law  is  no  doubt  justified 
in  hoping  for  a  substantial  revenue  from  ihis  source  ; 
but  we  must  just  wait  and  see. 

Apart  from  this  new  line  of  country,  which  must  be 
regarded  as  an  experiment,  Mr.  Law  has  followed  the 
stereotyped  lines.     He  has  raised  the  flat  rate  of  in- 
come-tax from  5s.  to  6s.,  and  the  super-tax  from  3s.  6d. 
to  4s.  6d.,  but  incomes  up  to  ;^500    a    year    are    un- 
affected,  and  a  concession   is  made  in  respect  of  the 
allowance  for  children    which  will  now  apply  also  to  the 
wife,   and  the  limit  of  income  to  which   the  relief  is 
applied  is  raised  from  j^7oo  to  ;^8c>o.     On  the  other 
hand,  super-tax  is  to  start  at  incomes  of  ;£'2,5oo  instead 
of  ;^3,c)oo.     The  nett  increase  from  these   sources  is 
estimated  at  ;;^44, 950,000  this  year,  and  at  ;^6o, 850,000 
in  a  full   year.     We  ought  to  mention   that   farmers 
are   now   to  be  charged    income-tax   on   double   their 
rental,   while   having  the   right  to  be   assessed   under 
Schedule  D — that  is,  on  the  actual  profits  made.     They 
still  escape  excess  profits  duty,  although  no  class  has 
benefited  more  relatively  From  war  conditions,  and  we 
doubt  vejj  much  whether  many  of  them   will  prefer 
Schedule  D  to  the  flat  rate.       Still  it  is  a  step  in  the 
right  direction,  and  for  the  present  we  must  be  satis- 
fied, while  we  do  not  suppose  that  the  farmers  them- 
selves will  be  disposed  to  grumble  more  than  ordinarily. 
The  duty  on  spirits  is  raised  from  14s.  9d.  {>er  gallon 
to  30s.,  or  rather  more  tHan  Bouble,  while  beer  is  to 
pay   50S.    per   standard   barrel,   against   255.     The   in- 
crease   in    regard    to    spirits    is    estimated    to    yield 
|;^7, 160,000  this  year  and  ;£^7, 550,000  in  a  full  year, 
while  the  corresponding  figures  for  beer  are  ;^9, 700,000 
and   ;^i 5,700,000   respectively.       Tobacco  duty   is   to 
be  raised  from  6s.  5d.  to  8s.  2d.  per  lb.,  and  the  effect 
will  be  to  increase  the  price  to  the  consumer  by  2d.  per 
oz.,  but  new  prices  for  tobacco  and  cigarettes  are  fixed 
by  the  Control  Board,  so  that  the  smoker  will  have  the 
satisfaction  of  knowing  that  most  of  the  advance  goes 
into  the  coffers  of  the  National  Exchequer.     Matches 


also  are  to  pay  more,  and  the  lowest  price  for  a  box 
(30  per  cent,  unlightables)  will  be  a  penny.  When  so 
many  things  are  controlled  it  would  surely  be  possible 
to  compel  manufacturers  to  reduce  the  percentage  of 
"  duds  "  which  one  usually  finds  in  a  box  in  these  days. 
The  higher  tobacco  duty  is  estimated  to  yield  only  a 
miserable  ;^io,ooo.  Either  that  is  hopelessly  wrong 
or  it  was  not  worth  disturbing  the  present  basis,  evea 
if  it  is  desired  to  reduce  consumption  by  increasing  the 
price.  Not  being  Treasury  ex{)erts,  we  cannot  tell 
what  they  are  driving  at,  but  the  ;^io,ooo  gain  is- 
obviously  preposterous  from  any  point  of  view,  and  in 
spite  of  control  will  merely  lead  to  further  profiteering. 

When  we  come  to  the  increase  in  the  sugar  duty  by 
lis.  8d.  per  cwt.  (say  i^d.  per  lb.)  we  get  on  to  very 
debatable  ground.  Mr.  Law  justifies  it  because  the 
State  now  .subsidises  the  loaf,  and  he  thinks  he  has 
somehow  arrived  at  a  reasonable  equation.  Of  course, 
it  is  nothing  of  the  kind.  We  were  always  greatly 
doubtful  about  the  policy  of  selling  bread  at  less  than 
cost  price — it  tended  to  extravagance  of  consumption, 
at  a  time  when  it  was  most  essential,  according  to  all 
official  statements,  that  the  strictest  economy  should  be 
practised.  Then  to  use  that  as  an  argument  to  raise 
the  already  heavy  duty  on  sugar  and  destroy  one  of  our 
most  profitable  industries  is  merely  flying  in  the  face  of 
common-sense,  but  as  there  is  no  real  Parliament  ia 
these  days,  we  must  accept  every  sort  of  stupidity  that 
may  be  rammed  down  our  throats.  Only  there  will  be 
a  terrible  day  of  reckoning  presently. 

We  need  not  refer  further  to  the  "luxury"  tax, 
especially  as  it  does  not  figure  in  the  revenue  esfimates, 
but  a  word  may  be  said  about  the  increase  on  the 
cheque  stamp  from  id.  to  2d.  This  is  going  to  pro- 
duce some  ;^'3,5oo,ooo,  we  are  told,  and  the  bankers, 
recanting  on  the  views  they  expressed  when  the  pro- 
posal was  made  by  Sir  Michael  Hicks- Beach  16  years 
ago,  are  not  averse.  Well,  their  staffs  are  reduced, 
and  to  a  great  extent  most  horribly  inefficient.  It  will 
suit  them  very  well  to  curtail  this  most  efficient  and 
excellent  form  of  currency — Treasury  notes  are  so 
much  easier  and  cheaper  to  handle.  But  the  idea  that 
the  2d.  cheque  will  not  cause  a  great  inflation  in  the 
circulation  of  "  Bradburys  "  and  fxjstal  orders  is 
absurd.  Take  a  case  within  our  personal  knowledge. 
A  firm — not  a  very  large  one — uses  a  ;^5  book  of 
cheques  (1,200)  every  three  or  four  weeks,  and  there 
are  scores  of  others  who  use  many  times  more.  But 
even  on  this  basis  the  firm  in  question  which  now  pays 
;^6o  or  ;^'7o  a  year  will  have  to  hand  over  to  the  Ex- 
chequer double  that  amount — an  irrecoverable  tax 
which  becomes  serious.  Of  course,  it  will  try  to 
economise  in  this  direction,  and  the  fact  that  it  is  cer- 
tain to  lose  by  adopting  other  methods  of  payment  will 
not  enter  into  the  calculation.  In  any  case,  it  is  not 
right  to  increase  indirect  taxation  to  this  extent,  and 
the  disturbance  to  the  normal  routine  of  trade  will  be 
far  greater  than  any  compensating  advantage  to  the 
Exchequer.  Very  similar  remarks  may  be  applied  to 
the  revised  p)ostal  scale,  which  has  nothing  whatever  to 
recommend  it.  It  would  probably  cause  far  less  irrita- 
tion to  make  the  basis  for  letters  2d.  instead  of  ijd. 
for  the  first  ounce,  and  to  leave  the  Jd.  postcard  undis- 
turbed. On  the  other  hand,  we  think  that  if  the  scale 
had  been  left  at  id.  per  oz.  for  letters,  rising  by  Jd. 
for  ever^'  additional  ounce  up  to  say  4  ozs. ,  and  then 
by  |d.  for  2  ozs.,  the  results  would  have  been  much- 
more  fruitful  to  the  Treasury.  We  suppose  we  must 
accept  expert  opinion  on  a  point  of  that  kind,  but  we 
feel  confident  that  the  question  has  not  been  considered' 
prof>erly  and  adequately  on  a  broad-minded  basis. 

We  are  not  dispyosed  to  criticise  Mr.  Law's  proposals 
too  critically,  but  there  are  one  or  two  points  that,  in- 
the  expressive  language  of  the  Stock  Exchange,  are 
"  sticking  out  a  yard."  In  this  desperate  crisis  of  our 
affairs  a  bold  Chancellor — a  Gladstone,  let  us  say — 
would  have  made  a  serious  eflfort  to  tackle  the  taxation 
of  ground  rents  and  some  of  the  more  glaring  inequali- 
ties of  our  land  laws.  A  Government  which  can  force 
Irish  conscription  through  the  House  of  Commons  carf 
pass   anything,    and   the   opportunity    to    get    a    few 


April  27,  igii 


XLbc  Jnveetors'  IReview. 


409 


rational  reforms  enacted  was  too  precious  to  be  missed. 
But  Mr.  Bonar  Law,  with  his  colonial  narrowness  of 
■vision,  which  is  usually  circumscribed  by  the  village 
pump,  could  hardly  be  expected  to  understand,  and 
still  less  to  deal  with,  some  of  these  old-world  problems 
of  purs.  There  is  no  use  in  grumbling.  The  existing 
House  of  Commons  is  old,  tired,  effete,  and  largely 
incompetent.  It  is  perhaps  just  as  well  that  a  few  of 
the  questionsxwe  have  indicated  and  a  number  of  others 
should  be  left  until  a  new  Parliament  is  elected  on  a 
really  broad  democratic  basis.  What  the  result  may 
be  we  should  not  like  to  predict,  but  we  feel  rather 
sorry  for  many  of  the  present  members  when  they  have 
to  go  before  their  constituencies  with  an  account  of 
their  stewardship. 

The  following  official  tables  will  be  found  useful  for 
future  reference  : — 

REVENUE    AND    EXPENDITURE, 
ESTIMATED    REVENUE,  1918-19. 

£  i 

■Customs   71,650,000 

Add  proposed  additional  taxation  ..       22,850,000 


Excise  

Add  proposed  additional  taxation  , 


35,350.000 
17,850,000 


94,500,000 


53,200,000 


147,700,000 

'Estate,  &c.,  Duties 31,500,000 

Stamps 8,500,000 

Add  proposed  additional  taxation . .  750,000 

■  9,250,000 

.Land  Tax 650,000 

-House  duty  1,950,000 

-Income-tax  (includins  Super-tax)....      267,500,000 

Add  proposed  additional  taxation  . .        22,950,000 

290,450,000 

Excess  Profits  Duty,  &c , .  300,000,000 

'Land  Value  Duties 700,000 

634,500,000 

Total  Receipts  from  Taxes    782,200,000 

■Postal  Service    24,600,000 

Add  proposed  increase  in  charges  . .  3,400,000 

28,000,000 

Telegraph  Service  3,500,000 

Telephone  Service 6,500,000 

38,000,000 

Crown  Lands    650,000 

Receipts  from  sundry  Loans,  &c 6,000,000 

Miscellaneous     ^ 15,200,000 

Total  receipts  fron  Non-tax  Revenue 59,850,000 

Total  Revenue 842,050,000 

Deficit 2,130,147,000 


2,972,197,000 


ESTIMATED  EXPENDITURE. 

Consolidated  Fund  Services. 

National  Debt  Services  : 

Inside  the  Fixed  Debt  Charge 19,150,000 

Outside  the  Fixed  Debt  Charge    295,850,000 

315,000,000 

Payments  to  Local  Taxation  Accounts,  &c 9,700,000 

■Other  Consolidated  Fund  Services 1,714,000 

Total  Consolidated  Fund  Services 326,414,000 

Supply  Services. 

Army   15,000 

Navy   17,000 

Air  Force    7,000 

Ministry  of  Munitions(including  Ordnance  Factories)  1,000 

'Civil  Services  : 

Old  Age  Pensions /■12, 085,000 

Ministry  of  Labour,  Insurance,  &c.  . .        9,619,000 
Other  Civil  Services  (including  Public 

Education) 42,325,000 

64,029,000 

Customs  and  Excise  and  Inland  Revenue   Depart- 
ments    5.573.000 

Post  Office  Services 26,141,000 

Total  Supply  Services 95,783,000 

Votes  of  Credit 2,550,000,000 

Total  expenditure    2,972,197,000 


FINAL  BALANCE-SHEET. 
Z918-19  (Estimate). 

Expenditure    2,972,197,000 

Revenue   842,050,000 

Deficit  (to  be  met  by  loans)    2,130,147,000 

1917-18  (Actual). 

Expenditure    2,696,221,000 

Revenue   707,235,000 

Deficit  (met  by  loans)  1,988,986,000 


EXAMPLES  OF   NEW  INCOME-TAX. 

The  follovi-ing  statement,  issued  o65cialIy,  shows   the  amount  of 
tax  payable  on  certain  incomes  : — 

A.     At  Proposed  Rates — (Maximum  6s.). 


Where  Income 
Wholly  Earned,. 

Where  Income 
Wholly  Unearned. 

Income. 

Amount  of 
Tax. 

Effective 
Rate. 

Amount  ot 
Tax. 

Effective 
Rate. 

£ 

131 

150 

20O    

250    

300    

350    

400    

450 

500    

550    

600    

650    

700    

800    

900 

1,000    

1,500    

2,000    

2,500    

£    s.d. 
100 
376 
900 

14  12    6 

20     5    0 

25  17    6 

31  10    0 

39    7    6 

45    0    0 

67  to    0 

75    0    0 

87    0    0 

94  10    0 

120    0    0 

135     0    0 

150    0    0 

281     5    0 

450    0    0 

656    5    0 

s.  d. 
0    2 
0    5 

0  II 

1  2 

I     4 
I     6 

I     7 
I    9 

1  10 

2  5 
2    6 
2    8 

2  8 

3  0 
3     0 
3    0 

3  9 

4  6 

5  3 

£    s.  d. 

too 

4  10    0 

12    0    0 

19  10    0 

27    0    0 

34   10    0 

42     0     0 

52  10     0 

60     0     0 

84     7    6 

93  15     0 

108  15     0 

118     2    6 

150    0    0 

168  15    0 

187  10    0 

337  10    0 

525    0    0 

750    0    0 

s.  d. 
0    2 

0  7 

1  2 

I     7 

1  10 

2  0 
2     I 
2     4 

2  5 

3  I 
3     1 
3     4 
3     4 
3     9 
3     9 

3  9 

4  6 

5  3 

6  0 

B.     At 
(Income-tax,  6s. 


Proposed 
Super-tax, 


Rates. 
Maximum,  4s.  6d.) 


Income. 

Income-tax. 

Super-tax. 

Income-tax 
and  Super- tax. 

Effective 
Rate. 

£ 

£ 

s. 

d. 

£     s. 

d. 

£      s- 

d. 

s. 

d. 

2,750 

825 

0 

0 

43  15 

0 

868  15 

0 

6 

4 

3,000 

900 

0 

0 

62  10 

0 

962  10 

0 

6 

5 

4,000 

1,200 

0 

0 

162  10 

0 

1,362  10 

0 

6 

10 

5,000 

1.500 

0 

0 

287  10 

0 

1,787  10 

0 

7 

2 

6,000 

i,Soo 

0 

0 

437  10 

0 

2,237  10 

0 

7 

5 

7,000 

2,100 

0 

0 

612   10 

0 

2,712  10 

0 

7 

9 

8.000 

2,400 

0 

0 

787  10 

0 

3,187  10 

0 

8 

0 

9,000 

2,700 

0 

0 

987  10 

0 

3,687  10 

0 

8 

2 

10,000 

3,000 

0 

0 

1,187  10 

0 

4,187  10 

0 

8 

4 

11,000 

3.300 

0 

0 

1,412  10 

0 

4,712  10 

0 

8 

7 

12, coo 

3,600 

0 

0 

1,637  10 

0 

5.237  10 

0 

8 

9 

13,000 

3,900 

0 

0 

1,862  10 

0 

5,762  10 

0 

8 

10 

14,000 

4,200 

0 

0 

2,087  10 

0 

6,287  10 

0 

9 

0 

15,000 

4,500 

0 

0 

2,312  10 

0 

6,812  10 

0 

9 

I 

20,000 

6,000 

0 

0 

3.437  10 

0 

9.437  10 

0 

9 

5 

25,000 

7.5CO 

0 

0 

4,562  10 

0 

12,062  10 

0 

9 

U 

30,000 

9,000 

0 

0 

5,687  10 

0 

14,687  10 

0 

9 

9 

40,000 

12,000 

0 

0 

7,937  10 

0 

19.937  10 

0 

10 

0 

50,000 

15,000 

0 

0 

10,187  10 

0 

25,187  10 

0 

10 

I 

100,000 

30,000 

0 

0 

21,437  10 

0 

51.437  10 

0 

10 

3 

150,000 

45,000 

0 

0 

32,687  10 

0 

77,687  10 

0 

10 

4 

Note. — The  figures  in  the  foregoing  Table  (A  and  B)  take  n9 
account  of  the  allowances  in  respect  of  life  insurance  premiums, 
children,  &c.,  which,  in  many  cases,  would  substantially  reduce 
the  tax  payable  and  the  effective  rate. 

YIELD  OF  NEW  CHARGES. 
The  following  table  shows  the  estimated  increase  in  revenue 
owing  to  the  proposed  alterations  in  taxation  and  postage  rates  ; — 


Customs — 

Spirits 

Tobacco 

Sugar 

Total  Customs  

Excise — 

Spirits 

Beer 

Tobacco 

Sugar 

Matches 

Total  Excise}    

Total  Customs  and  Excise 


Estimate, 
1918-19. 


£ 

3,400,000 

7,490,000 

11,960,000 


22,850,000 

7,100,000 

9,700,000 

10,000 

440,000 

600,000 


In  a  Full 
Year. 


£ 

3,600,000 

7,990,000 

12,740,000 


17,850,000 


24,330,000 

7,550,000 

15,700,000 

10,000 

460,000 

600,000 


24,320,000 


40,700,000      48,650,000 


4IO 


Zbc  Jnvestots'  IReview. 


April  27,  1918. 


Carried  forward    

40,700,000 

750,000 

•35,750,000 

9,200,000 

48,650,000 

1,000,000 

146,700,000 

14,150,000 

Inland  Hevenas — 

Additional  Stamp  Duty  on  Bills  of 
Exchange  (including^  Cheques)  and 
Promissory  Notss   

Increased  Income-tax 

Increased  Super-tax 

Leis— 
Postponement  owinR  to   payment  of 
Income-tax,  Schedule  A,  by  instal- 
ments   

45,700,000 
22,000,000 

Total  Inland  Revenue 

23.700,000 
3,400,000 

61,850,000 
4,000,000 

Postage  Rates   

Grand  total    

67,800,000 

114.500,000 

*  Includes  ;f  2,500,000  in  respect  of  doubling  Schedule  B  assess- 
ments, t  Includes  ;(f5, 300,000  in  respect  of  doubling  Scbadula  B 
assessments.     J  Luxury  tax  not  computed. 


Merchant  Shipping  Losses. 

NEW  RETURN  OF  TONNAGE  FIGURES. 

The  Admiralty  return  of  shipping  losses  by  submarine  and  mine 
is  now  given  in  a  different  form.  The  Government  propose  to 
issue  information  as  to  the  gross  tonnage  lost  and  the  tonnage  of 
sailings  to  and  from  the  United  Kingdom  monthly  in  future,  the 
tables  to  appear  in  the  Press  on  the  Thursday  morning  following 
the  2ist  of  each  month. 

The  information  now  published  weekly  as  to  the  numbers  of 
vessels  lost,  and  the  numbers  entering,  and  clearing  from.  United 
Kingdom  ports,  will  be  discontinued. 

The  losses  of  British,  Allied  and  neutral  merchant  tonnage  due 
to  enemy  action  and  marine  risk  during  the  month  of  March,  igi8, 
compared  with  preceding  periods,  are  set  out  below  : — 
Gross  Tonnage. 


Period. 

British. 

Allied  and 
Neutral. 

Total. 

1917. 
January  

193.045 
343,486 

375.309 

216,787 
231.370 
259.376 

409.832 
574.856 
634,685 

February    

March     

911,840 
555.056 
374.419 
432.395 

707.533 

1.619,373 

April   

May    

June    

338,821 

2.55.917 
280,326 

893.877 
630.336 
712,721 

1,361,870 

875.064 

2,236,934 

July 

383.430 
360,296 
209.212 

192.519 
189,067 
159.949 

575.949 
549.363 
369,161 

August    

September 

952,938 

541.535 

1.494.473 

October 

289,973 
196,560 
296,356 

197.364 
136.883 

155.707 

487.337 
333.443 
452,063 

November 

December 

782,889 

489.954 

1,272,843 

1918. 
January 

117,270 

254.303 
216,003 

136,187 

134. "9 
165,628 

353.457 
388,422 
381,631 

February    

March     

687,576 

435.934 

1,123,510 

The  Ministry  of  Shipping  announces  that  the  tonnage  of  steam- 
ships of  500  gross  tons  and  over  entering  and  clearing  United 
Kingdom  ports  from  and  to  ports  overseas  was  as  follows  : — 


Period. 

Gross  Tons 

Period. 

Gross  Tons 

1917— October 

November 

December ^. 

6,908,189 
6,818,564 
6,665,413 

1918 — January  .... 
February   . . 
March    .... 

6,336,663 
6,326,965 
7,295,620 

NoTB  — This  statement  embraces  all   United  Kingdom  seaborne 
traffic  other  than  coastwise  and  cross-Channel. 


8y-the-Way  War  Notes. 

It  came,  that  splendid  naval  and  air-craft  attack  on  Zee- 
brugge  and  Ostend,  as  a  great  heartening  amid  the  drab 
waiting  for  the  next  German  assault  on  Uie  Allied  armies 
in  France  and  Flanders.  The  more  one  reads  about  it, 
the  more  one  is  filled  with  astonishment  and  admira- 
tion over  the  joyous  dash  shown,  the  unflinching  resolu- 
tiori  and  the  triumphant  success  which  attended  that  most 
perilous  adventure.  And  the  men  who  planned  it  and  made  it 
were  all  volunteers,  who  knew  what  such  an  enterprise 
implied,  and  who  therefore  took  their  lives  in  their  hands, 
cheerfully,  eagerly,  for  the  honour  and  salvation  of  their 
country.  Reverently  do  we  hold  them  in  all  honour.  No  one 
could  ever  persuade  us  that  a  nation  which  possesses  such  men 
is  going  to  be  overwhelmed  by  the  brute  beast  in  man,  by  dis- 
torted creatures  inspired  with  the  lust  of  the  robber,  whose 
confidence  in  and  expectation  of  victory  are  founded,  not  on 
a  righteous  cause,  but  on  cunning  machines  and  inventions  of 
death,  on  the  skilfully  massed  force  of  the  brute,  in  all  senses 
of  that  repellent  word,  and  whose  vaunt  is  that  his  science  has 
made  him  almighty  to  destroy. 

The  damage   done  at  the  two    naval     bases    the     Prussians 


possess  in  Belgium  seems  to  have  been  great,  and  should  have 
a  valuable  sequel  in  crippling  the  Germans  in  their  submarine 
campaign  againit  our  merchant  shipping.  A  little  time  will 
show  how  far  from  the  truth  is  the  German  official  declaration 
that  the  attack  was  "  frustrated."  What  is  there  left  for  them 
to  do  but  to  lie? 

Apparently  the  carefully  arranged  assaults  of  the  enemy  on 
the  Allied  lines  in  ^"rance  and  Belgium  are  now  resumed. 
Twice  these  attacks,  the  most  formidable  and  most  thoroughly 
organised  ever  launched  against  our  front,  have  been  fought  to 
a  standstill,  once  on  the  Somme,  once  in  Belgian  Flanders,  but 
it  is  impossible  for  the  masters  of  Germany  and  Austria  to 
accept  defeat.  All  their  partial  advances  must  be  "decisive" 
victories.  The  Finance  Minister  of  the  Hohenzollcrn  is  still 
talking  to  the  deputies  of  the  Reichstag  about  the  "  indemnity  " 
to  be  exacted  from  the  defeated  Allies,  and  the  military  faction 
continues  to  lie  and  pretend,  and,  where  no  force  is  opposed 
to  them,  to  seize  and  annex,  just  as  if  victory  were  in  verj 
truth  always  theirs.  They  must  do  that  or  be  themselves  over- 
whelmed. For  inside  the  country  hunger  eats  deeper  and 
deeper  into  the  vitality  of  the  people,  so  that  with  every  week 
that  passes  conditions  of  life  become  more  desperate  for  the 
blinded  multitude,  the  necessity  of  finding  same  way  of  escape 
more  peremptory  for  its  tyrants.  There  is  nothing  for  these 
tyrants  but  that  they  should  assault  and  assault,  and  yet  again 
assauh,  and  that  we  should  cx)ntinue  to  mow  the  assailants 
down,  as  we  have  done  and  shall  continue  to  do. 

In  the  intervals  between  the  blows  we  have  never  been  idle. 
Our  business  during  such  pauses  is  to  harass  the  enemy  by 
every  device  our  ingenuity  can  suggest,  to  impede  his  progress, 
block  his  lines  of  communication,  destroy  his  artillery  and  his 
munition  stores,  break  up  his  aeroplane  nests,  and  in  other  ways 
continually  harass  him  in  his  movements.  We  have  been 
doing  that  since  the  Latest  assault  in  the  north  spent  itself,  just 
as  before ;  and  also  all  the  time  we  have  been  making  ready  our 
resistance,  our  re.serves  have  been  brought  up  and  organised 
so  as  to  be  available  to  strike  in  at  whatever  point  the  attack 
may  prove  most  formidable  and  dangerous.  And  we  are  ready, 
well  ready,  this  time.  The  confidence  of  our  chiefs,  of  Foch 
and  Haig  and  Clemenceau,  put  that  beyond  doubt.  Therefore 
we  look  forward  with  serenity  to  the  agony  now  again  to  be 
endured.  Once  again  the  German  troops  will  probably  make 
progress  at  certain  points  by  massing  men  and  guns,  and  gas 
and  flame,  every  instrument  of  murder  beings  devil-possessed 
can  conceive,  but  nowhere  will  they  be  victorious  in  the  end, 
of  that  we  are  sure. 

And,  looking  at  the  l.-irger  aspect  of  this  world  conflict,  is 
not  the  way  we  are  travelling  towards  victory,  though  stern  in 
the  sacrifices  it  calls  for,  after  all  the  best  that  could  have  been 
chosen?  It  is  not  now  as  in  former  wars,  let  us  once  more 
remind  the  reader,  a  question  of  beating  an  army,  of  putting 
the  trained  forces  of  the  enemy  at  such  disadvantage  that  they 
can  no  longer  maintain  an  organised  opposition  ;  it  is  nations 
we  are.  fighting,  the  whole  male  populations  of  Germany  and 
Austria,  and  if  the  victory  is  to  be  complete  these  males  have 
to  be  destroyed  to  an  extent  which  will  for  ever  paralyse  their 
offensive  power.  It  is  a  horrible  thing  to  say ;  but  what  else  is 
possible,  looking  at  the  boundless  vanity  and  conceit  which  has 
swollen  cut  the  mind  of  the  Teuton  until  he,  silly  fool,  imagines 
himself  a  being  endowed  by  God  to  rule  over  his  fellow-man. 
and  regards  that  fellow-man  as  a  creature  existing  solely  for 
his  purposes,  set  down  on  earth  to  work  for  his  advantage.' 
There  is  no  way  of  cui'ing  Germany  of  this  colossal  pride  and 
lust  of  the  robber  except  by  destroying  him,  by  stamping  out 
the  madness  in  btood,  as  one  would  stamp  out  a  murrain 
amongst  the  cattle. 

A  German  statistician  has  been  reckoning  up  the  losses  of 
the  Hohenzollern  Empire  alone  at  more  than  five  millions  of 
men,  and  what  has  been  gained  by  that  empire  in  exchange  for 
these  losses?  Nothing  substantial;  let  Dr.  Helfferich  answer^ 
a  world's  "loathing."  The  emissaries  of  the  Prussian  military 
tyrants  and  their  industrial  henchmen  may  overrun  Russia.. 
Rumania,  Finland,  Bulgaria,  Turkey,  the  Further  East,  where- 
ever  they  can  penetrate,  but  what  avails  it?  What  can  they 
find  to  carry  off  in  exchange  for  the  German  goods  they  go  to- 
sell  in  countries  stripped,  burnt,  ravaged  in  all  ways  by  the 
passage  of  the  brutalised  trooper?  Are  these  conquests  and 
overrunnings  Eastward  of  any  avail  beside  what  is  happening 
in  the  West?  Is  it  not  evident  that  this  long  battle  in  France 
and  Belgium  is,  slowly  it  may  look,  but  none  the  less  surely, 
sealing  for  ever  the  doom  of  both  Hohenzollern  and  Habsburg 
tyrannies?  And  so  near  is  the  hour  of  exhaustion  for  these 
tyrannies,  that  in  spite  of  the  necessities  of  Austria-Hungary 
in  the  East,  notwithstanding  the  demands  involved  in  a  prose- 
cution by  Austria  ol  her  invasion  of  Italy,  her  troops  have  had 
to  be  drafted  away  to  assist  the  Prussians  in  their  assault  on 
the  Western  front.  The  two  impostures  have  joined  forces  in 
one  last  despairing  assault,  and  the  Italian  and  the  Balkan 
campaigns  will  alike  be  decided  on  that  assaulted  Western 
front.  Therefore,  the  more  furiously  the  enemy  rage  now  and 
batter  themselves  against  the  lines  of  our  defences,  against 
the  walls  of  human  flesh  raised  to  confront  them,  inspired  by 
our  energy  and  self-sacrifice,  by  the  righteousness  of  our  cause, 
the  sooner  will  come  that  peace  which  will  be  the  deliverance  of 
a  world  long  held  in  bondage  by  the  ever-present  dread  of  the 
dangers  lying  in  wait  in  Prussian  militarism.  Ruflianism  in 
uniform  will  have  ceased  to  be  popular  even  in  Teutonia  when 
this  war  has  ended. 

A   much   more  complete  and   satisfactory   exhibit  of  marine: 


April  27,   1918. 


Che  Jnvestots'  TRevtew. 


411 


shipping  losses  has  now  been  arranged,  and  the  first  table  of 
the  new  type  has  been  published.  We  are  not  to  have  any 
more  weekly  returns  of  the  imperfect  kind  the  public  has  so 
long  been  familiar  with.  Instead  of  the  number  of  ships  sunk 
every  week,  the  Government  is  to  issue,  so,.as  to  appear  in  the 
Press  on  the  Thursday  morning  following  the  21st  of  each 
month,  an  e.xhibit  of  the  gross  tonnage  lost,  and  of  the  tonnage 
of  sailings  to  and  from  the  United  Kingdom.  We  think  it  well 
to  make  room  for  the  first  of  these  new  tables  in  its  entirety, 
although  in  months  to  come  we  may  not  be  able  to  afford  space 
for  more  than  a  summary  of  it.  The  reader  will  find  it  0:1 
page  410. 


CuRTis's  AND  Harvey,  Ltd. — This  company  is  still  unable 
to  present  accounts  for  1916,  and,  of  course,  those  for  last  year 
must  also  be  held  in  abeyance.  We  cannot  beliove  that  this  is 
necessary,  although  numerous  points  have  still  to  be  settled 
with  the  Government,  and  it  would  surely  be  practicable  to 
carry  the  amounts  in  dispute  to  suspense.  Anyhow,  the 
directors  are  satisfied  that  the  profits  are  sufficient  to  repeat 
the  dividend  of  20  per  cent.,  less  tax,  and  they  avouM  scarcely 
do  that  if  they  had  not  an  ample  margin  to  play  with. 

J.  Mandleberg  and  Co.,  Ltd. — After  providing  for  excess 
duty,  income-tax  and  contingencies,  the  nett  profits  for  the 
year  -  to  December  19  amounted  to  ^90,000,  or  practically  the 
same  a?  for  the  previous  12  months,  but  we  should  judge  that  the 
business  has  really  been  more  prosperous  than  the  figures  show. 
At  any  late,  with  ^73,000,  or  ^23,000  more,  brought  in,  the 
directors  feel  justified  in  raising  the  bonus  from  5  per  cent,  to 
7K  per  cent.,  so  that  the  total  distribution  is  22^^^  per  cent., 
against  20,  and  the  carry  forward  is  increased  by  ^5,000.  A 
year  ago,  however,  the  shareholders  received  a  special  bonus 
from  the  capitalisation  of  ;^6o,ooo  reserves,  giving  them  one  new 
share  for  every  four  held.  Creditors  have  increased  ;^roo,ooo  to 
;f324,ooo,  while  debtors  are  up  ;^90,ooo  at  ;^287,ooo,  and  stocks 
have  increased  ^53,000  to  ^164,000,  but  ca:sh  is  down  ^32,000. 
The  business  of  waterproofing  has  evidently  been  quite  pros- 
perous. 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 

I'eriod. 


Alliance  Investment. (Apl.) 

Do Prev. 

Carthagena  and  Hereerias 
Steam  Trams. . .  (Dec.) 

Do Prev 

Cuba  Submarine  Telegr'  pb 
(Dec.) 

Do Prev. 

Edinburgh  Collieries  (Jan.) 

Do Prev. 

Groves  and  Whitnall(Dec.) 

Do Prev. 

Hyam  and  Co (Feb.) 

Do Prev. 

North  of  England  Trustee 
Deb.  and  Assets  Cor- 
poration     (Mar.) 

Do Prev. 

Richard  Wheen  and  Sons 
(Nov.) 

Do Prev. 

Southampton    Gaslight 

and  Coal    (^  Dec  ) 

Do Prev. 

Spratt's  Pat.(Amer.)(Dec.) 
Do Prev. 


Gross 
Profit. 


£ 

43,220 
45,280 

50.370 
30,500 

72.530 
51.740 


25,260 
20,130 


70,450 
77,710 


128,820 

107,130 

16,440 

15.020 


Nett 
Profit. 


13.920 

6,410 

43.970 

33.750 

51.510 

108,070 

118,720 

122,970 

20,360 

16,320 


56,190 
63,690 

9.790 
9,690 

9,780 
18,290 
14.430 
12.600 


Total 
Re- 
serves. 


£ 

101,310 
101,310 

11,300 
11,300 

100,000 
90.000 


180,000 
160,000 


150,000 
150,000 


41.380 
48,990 
16,000 
15,000 


Divi- 
dend. 


% 


7 
7 

74 

i7i 

6 

3 

JO 

10 


Hi 
10/ 

34 
2 

3 
5 

6J 
6i 


Carried 
For- 
ward. 


£ 
12,270 
11,480 

4.710 
1,780 

21,900 
7,630 
26,660 
30,150 
62,380 
55.080 
17,670 
13,110 


29,010 
25,290 

1.340 
1.530 


1.950 
6,180 

4.850 


South  African  Gold. — A  statement  of  the  gold  production  for 
the  year  1917  issued  by  the  Chamber  of  Mines  shows  the  fol- 
lowing decreases  as  compafled  with  19I16  : — Tons  millet^, 
1,312,617;  stamps,  257;  output,  ;f  1,161,013;  working  profit, 
;f395,oii  ;   profit  per  ton,,    8d.  ;  dividends  djeclared,  ;£552,985. 


CREDITO     ITALIANO. 

Capital  fully  paid  ::  Lire    100,000,000 

Reserve  Fund  ,,       21,000,000 

Deposits  and  Current  Accounts  at  31st  December,  1917      „   1,537,156,302 

Head  Office  of  the  Bank— MILAN. 


Branches:  BARI,  CATANIA,  TURIN,  FLORENCE,  NAPLES,  LEGHORN,  GENOA,  ROME,  LONDON,  Ar«izo,  Asti, 
Cagliari,  Carrara,  Casale  Monferrato,  Gastellammare  di  Stabia,  Chiavari,  Ghieti,  Civitavecchia,  Poggia,  Iglesias,  Lecce,  Lecoo, 
Lucca,  Messina,  Modena,  Monza,  Nervi,  Novara,  Oristano,  Parma,  Pisa,  Porto  Maurizio,  Sampierdarena,  Savona,  Spezia, 
Taranto,  Torre   Annunziata,   Torre   del  Greco,  Varese,  Vercelli,  Voghera. 


balance:   sheet, 

31st    DECEMBER,    1917. 

ASSETS. 

LIABILITIES. 

Cash      

Lire 

165,098,728.50 

Capital 

...   Lire 

100,000,000. 

Bills  receivable  on  Italy,  and  other  Countries 

,, 

1,071,102,043.05 

Iteserve  Fund 

,, 

15,000,000. 

Loans  against  ColUteral  Securities        

,, 

49,830,283.10 

Current  Accounts 

,, 

1,191,466,570.10 

Current  Accounts,  Ac 

,, 

478,640,738.85 

Deposits  and  Saving  Accounts 

,, 

365,699,732.50 

Investments  ... 

,, 

16,072.350.15 

Acceptances  on  Account  of  Customers 

,, 

54,436,133.35 

Participations            

,, 

5,088,695.80 

Clieques  Outstanding         ', 



50,223,582.15 

Freehold  B;ink  Premises 

„ 

12,500,000. 

Sundry  Creditors     

,, 

29,37',295.75 

Sundry  Debtors        

,, 

24,740,921. 

Guarantees  on  Account  of  Customers 



59.668,045.15 

Customers'  Liabilities  and  Securities  ajfainst  Guaran- 

IJebate on  Bills  Receivable  maturing  next  year 



2,950,856.50 

tees           ,        

Lire 

59,658,045.15 

Net  Profit      

Lire 

13,930,590.10 

1,882,731,805.60 

1,882,731,805.60 

Securities  belonging  to  Clerks'  Provident  Fund  as 

per  contra           

Lire 

4,323,673.85 

Clerks' Provident  Fund  as  per  contra    

Lire 

4,323,673.85 

1,887,055.479.45 

1,887,056.479.45 

At  the  Annual  General  Meeting  hold  on  27th  March,  1918,  it  was  resolved  to  allocate  the  Net  profit  as  follows; 

To  Reserve  Fund,  increisin,;  it  to  Lire  21,000,000  Lire  6,000,000. 

„  Shareholders  as  Dividend  7  per  cent ,    7.000.000. 

„   Directors 785,267.10 

Balance  carried  forward „       145,323. 


Lire  13.930,590.10 


THE    LONDON    BRANCH :    22,    ABCHURCH    LANE,    E.G.  4. 

Transacts  a  general   Foreign  Banking  Business,  and  is  specially  prepared  to  grant  facilities  for  the  development  of  trsfde 
''  Correspondent  of  the  Royal  Italian  Treasury. 


Management  of  the  London  Branch  : — D.  A.  HORNER,    ) 

F.  N.  SCHILLER,  ' 
P.  ASHER,  Sub- Manager. 
G.  MANZI  FE,  Director  Residing  in  London. 

Telegrams:  "  ITALOCREDI,  CANNON,  LONDON." 


Managers. 


Telephones :  7802-7803  CITY. 


412 


XTbe  Jnvestors'  IRevtew 


April  27,  1918. 


ASSURANCE  CO..  LTD. 


NATIONAL  BENEFIT 

ASSETS    EXCEED        -  -         £1,000,000. 

Attractive   LIFE,    FIRE,  ACCIDENT  &  MARINE  Polioies. 

HEAD    OFFICES : 

NATIONAL    HOUSE,    Newgate    Street.    LONDON.    E.C.  1. 

Managing  Director:  J.  Francis,  J. P.,  F.S.S. 


tCbe  investors'  1Rev?iew. 

Money    and   Credit    Notes. 


Bank  Rate  5  per  Cent.    (Reduced  from  5J  percent,  on 
Thursday,  April  5,  191 7.) 

Norfolk  House,  Friday  Evening. 

It  can  hardly  be  said  that  the  price  of  credit  has  altered  all 
the  week.  Ope  hour  there  might  be  a  less  abundant  supply 
than  another,  and  sometimes  the  market  was  sponged  empty 
by  the  masses  of  Treasury  bills  flung  into  it,  but  it  all  amounted 
to  little  on  the  average,  and  money  has  been  3  per  cent,  from  day 
to  day  every  morning  of  the  week.  The  afternoon  rate  might 
fall  to  2  per  cent.,  or  latterly  2J  per  cent.,  but  there  was 
always  abundance  for  all  legitimate  wants,  and  seven-day 
money  never  lost  more  than  3^.  It  has  been  the  same  with 
the  discount  rates,  which  have  been  about  3J  to  3-,^  per  cent, 
throughout. 

Considerable  movements  of  credit  have  been  disclosed  by  the 
Barik  return,  but  they  also  make  little  real  change  in  the 
position.  By  a  depletion  of  ^^5, 121,000  in  the  public  or  Govern- 
ment deposits,  other  deposits  have  been  refreshed  to  the  extent 
°f  /'jO^J'two,  Government  securities  to  the  amount  of 
;^i,589,ooo  have  been  paid  off,  as  well  as  /i,  108,000  of  other 
securities,  while  a  draft  of  ;if 515,000  upon  the  reserve  has  been 
met.  This  draft  is  entirely  due  to  an  increase  of  ;^524,ooo  in 
the  note  circulation,  the  coin  and  bullion  being  up  ^9,000. 
Practically  no  change  has  been  caused  in  the  proportion  of 
reserve  to  liabilities  by  the.se  movements.  It  remains  at  175 
per  cent,  or  thereby.  Public  deposits  are  now  ;£i7,6i9,ooo 
below  the  figure  of  a  year  ago,  while  other  deposits  are 
^^22,905,000  larger,  and  Government  securities  ^19,252,000  up. 
The  pressure  of  the  Treasury  on  the  resourc-^s  of  the  Bank 
thus  shows  an  emphatic  increase  upon  the  figures  of  last  year, 
and  that  cannot  go  on  much  longer  without  forcing  the  Govern- 
ment to  take  far  more  drastic  measures  to  protect  the  credit  of 
the  country  from  embarrassmont  th;un  any  vot  attem^ited  bv  it. 

The  Yokohama  Specie  Bank,  Limited,  Loiidon,  announces' that 
£254,500  4i  per  cent,  bonds  of  the  first  s.eries,  and  ^245, 520 
bonds  of  the  second  series,  of  the  Sterling  Loans  of  1905,  have 
been  purchased  on  behalf  of  the  Imperial  Japanese  Government 
for  the  purpose  of  cancellation. 

It  now  seems  to  be  more  generally  realised  that  the  "  conces- 
sion "  granted  in  connection  with  the  5  per  cent.  War  Loan  of 
paying  dividends  without  deduction  of  tax  at  the  time  of  pay- 
ment is  of  doubtful  value,  owing  to  an  important  point  in  in- 
come-tax law  having  been  overlooked  at  the  time  the  concession 
was  made.  The  income-tax  law,  as  it  now  stands,  provides  that 
interest  received  must  be  brought  into  assessment  for  tax  in  the 
year  foIISwing  that  in  which  it  was  received.  Consequently 
last  year's  interest  payments  on  War  Loan  will  be  taxed  this 
year  at  6s.  i^i  the  pound  instead  of  5s.,  which  means  a  reduc- 
tion in  the  nett  interest  received  of  5s.  per  cent.  To  penalise 
the  holders  of  War  Loan  in  fhis  way  obviously  could  not  have 
been  intended  by  the  Government  in  undertaking  to  pay  the 
interest  without  deduction  of  tax,  and  it  is  quite  clear  that  the 
Finance  Act  will  have  to  contain  a  provision  making  the  rate 
of  tax  applicable  to  the  dividends  the  same  as  w.is  current 
during  the  period  in  which  the  interest  was  paid. 

In  raising  the  price  of  the  4  per  cent,  taxcompounded 
National  War  Bonds  from  100  to  loi^,  the  average  yield  is  re- 
duced from  4  per  cent,  to  3fJ  per  cent.,  allowing  for  the  loss  of 
the  premium  on  redemption.  The  total  average  nett  yield  on 
the  5  per  cent,  bonds,  however,  is  £^  17s.  6d.,  ;,f  3  los.  in  in- 
terest and  7S.  6d.  in  bonus.  The  5  per  cent,  bonds  are  therefore 
the  cheapest  as  regards  income-tax,  and  cheaper  still  if  the 
holder  is  a  super-tax  payer,  for  the  interest  on  the  Fours  is 
assessed  at  jf5  14s.  3d.  for  super-tax. 

Movements  in  the  foreign  exchange  market  this  week  have 
been  of  a  more  humdrum  character.  The  Chilian  peso  is  more 
expensive  to  buy,  the  quotation  being  iv32d.  higher  at  i^jid.. 
after  having  touched  16  i-32d.  Uruguayan  dollars  still  stand 
13d.  above  parity  at  64d.  Montre.il  has  risen  2  points  to 
»4.86J,  which  IS  really  above  par  if  allowance  be  made  for  the 
extra  cost  of  shipping  gold.  The  rea.son  for  this  rise  is  the 
premium  which  exists  in  Montreal  on  \ew  York  credits. 
Spanish  exchange  has  been  steadier  at  16.85  pe.setas  to  the 
pound.  The  sa'e  of  the  whole  of  the  Egyptian  rotfon  crop  to 
Spain  will  tend  to  move  exchange  in  our  favour  in  the  near 
future.  Scandinavian  rates  have  moved  slightly  in  our  favour 
this  week,  and  the  Dutch  exchange  is  firmer  at  0.94}  florins  to 
the  pound.  Lire  have  depreciated  afresh,  Italian  exchange 
being  obtainable  at  42.45  lire  to  the  pound,  against  42.35  a  week 
ago. 


The  Soci^t^  G^n^rale  de  Paris  has  lately  been  very  active  in 
developing  its  connections  abroad,  on  much  the  same  lines  as 
has  been  followed  by  British  banks.  It  has  entered  into  a  close 
understanding  with  several  important  American  institutions, 
and  has  secured  a  substantial  interest  in  the  Banque  Framjaise 
et  Italienne  pour  I'Amerique  du  Sud,  on  the  board  of  which  it 
is  now  repre.sented.  It  has  also  formed  another  affiliated  bank 
called  the  Banque  Fran?aise  du  Chili.  Last  autumn  a  group 
of  important  French  industrial  concerns,  specially  interested  in 
iron  and  steel,  obtained  an  important  interest  in  the  Sociit6 
Gin^rale. 

SiLVEB. 

A  rise  of  2d.  took  place  in  the  price  of  silver  this  week.  It 
was  47id.  per  oz.  on  Thursday  of  last  week,  and  it  is  49Jd. 
now.  This  remarkable  jump  is  not  due  to  scarcity  of  the  metal 
or  to  unusual  activity  in  business  at  any  point,  but  solely,  as 
Mocatta's  circular  explains,  to  the  passage  of  the  Silver  Bill 
by  the  Washington  Government.  As  originally  framed,  that 
Bill  provided  for  the  conversion  of  250,000,000  silver  dollars 
into  bullion.  This  has  been  raised  to  9350,000,000,  and  as  the 
silver  is  eventually  to  be  repurchased  by  the  American  Treasury 
at  a  dollar  per  ounce,  that  prospect  naturally  fixes  its  price. 
The  49id.  is  taken  as  about  the  equivalent  of  a  dollar,  plus 
shipping  charges,  and  presumably,  therefore,  fluctuations  are 
now  practically  at  an  end,  especially  as,  according  to  an  answer 
given  by  the  Secretary  of  State  for  India  to  Sir  J.  D.  Rees, 
India  is  now  well  provided  with  the  metal.  Between  February, 
1915,  and  March  31  last  214,000,000  standard  ounces  of  silver, 
approximately  of  the  value  of  ^'34, 800,000,  were  bought  by  the 
Indian  Government  for  coinage,  and  during  la.st  year  the  same 
Government  also  .secured  3,000,000  sovereigns  in  India,  against 
:i  like  amount  previously  hold  t>y  the  Secretary  of  State  in  Lon- 
don. Further,  under  an  ordinance  of  June  29,  1917,  ;^i2,8oo,ooo 
of  gold  privately  imported  into  India  was  also  acquired  by  the 
Government,  and  this  year  /2, 000,000  in  gold  bullion  has  been 
procured  from  the  Home  Government.  It  is  hoped,  too,  that  a 
portion'  of  the  silver  now  demonetised  in  the  United  States 
will  find  its  way  to  India.  That  being  so,  from  what  source 
disturbance  of  the  market  can  come  is  not  at  present  visible. 


BANK    OF    ENGLAND. 


AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 
Week  ending  on  Wednesday.  April  24,  1918. 


Notes  Issued 


ISSUE    DEPARTMENT, 
£         I 
..    78,744,055 


Government  Debt.. 
Other  Securities    ., 
Gold  Coin  and  Bullion 
Silver  BullioD 


£78,744,055 


BANKING    DEPARTMENT, 


Proprietors  Capital        ,. 

Rest 

Publlo  Depo8Us(includlDg 
Exchequer,  Savings 
Banks,  Commissioners 
of  National  Debt,  and 
Dividend  Aooounts) .. 

Other  Deposits 

Seven  Day  and  other  Bills 


£ 
14.553.000 
3,064,714 


34,831,045 

140,154,188 

15,720 

f 192,613,667 


Governnient  Sectirities 

Other  Securities    .. 

Notes.. 

Gold  and  Silver  Colo 


£ 
11,015,100 
7,434,900 
60,294,055 


f78.744,055 


56,723.832 

104,842,901 

30,334.750 

712,184 


Dated  April  95, 1918. 


J.  G. 


f  192,613,667 
NAIRNE,  Chief  Cashier. 


BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
April  85. 

April  17, 
19'8. 

April  24, 
1918. 

Inorease. 

Decrease 

£ 
3,090,769 

52,450,017 

37,472,228 
"4.436.541 
35,470,527 

Liabilities. 
Rest 

Pub.  Deposits  .. 
Otber    do. 
7  Day  Bills       .. 

Assets. 
Gov.  Seoariilas. 
Otber       do. 
Total  Reserve.. 

NoteClroulalion 
Coin  and  Bullion 
Proportion 
Bank  Rate 

3,073,686 

39,951,682 

138,231,685 

15,812 

58,312,832 
103,950,822 
31,562,211 

£ 

47,884,995 
60,997,206 
177  p.C. 

:     .. 

3,064,714 

34,831,045 

140,154,18a 

10,720 

56,723.832 
104,842,901 
3  ■.046.934 

48,409,305 

61,006,239 

'7  7  P  0. 

S      .. 

£ 

1,922.503 

Decrease. 

1,589,000 

1,107,921 

515.277 

5. '34,701 

looceasa 
£ 

524«3'0 
9.033 

£ 

8,972 
5,120,637 

5. "92 
Increase. 

5.'34.7oi 

38,327,090 
55,247,617 

20'9  p.C. 
5  .. 

Deotease. 

LONDON 

BANKERS' 

CLEARING. 

Date. 

Increase. 

Decrease. 

1918. 

1917. 

€ 

€ 

January 

2,073,224,000 

1,865,125,000 

208.099,000 

— 

February 

1,605,654,000 

1.779,524,000 

— 

173.870.000 

March 

1.784,836,000 

1,492,825,000 

292,011,000 

— 

April         3 

324,156,000 

389,347.000 

— 

6i,tgi,ooo 

.,           10 

401,307.000 

253,111,000 

148,196,000 

— 

■7 

358,580,000 

396,311,000 

— 

37,73 1, coo 

25 

36*,263,ooo 

365,133,000 

— 

3,850,000 

Total 

6,910,020,000 

6,403,902,000 

648,3013^000 

279,642,000 

April  27,   1918. 


Zhc  Jnvestors'  IRevtew. 


413 


CURRENCY  NOTES. 

Return  of  Currency  Notes  for  the  week  ended  April  24,  igiS. 


Issued. 

Cancelled. 

Outstanding. 

£1  notes         

los.  notes        

Note  certificates 
Previous  total 

3,773.265 

1,225,693 

1,080,000 

8^7.258.535 

2.793,632 

1,124,418 

50,000 

654:178,440 

£ 
169,486,793 
38,263,814 
27,440,000 

893.337,493 

658,146,607 

235,190,607 

Ratio  of  gold  held  against  notes,  this  week,  i3>74  p.c. ;  last  week,  13.79  P*c> 

PUBLIC   INCOME   AND    EXPENDITURE. 

(For  7  days  ended  April  20.) 


REVttNUE. 


Expenditure. 


'Customs          1,629,000 

Excise 1,675,000 

Estate,  &c.,  Duties  ..         ..  484,000 

Stamps 54.000 

Land  Tax  and  House  Duty  50,000 

Property  and  Income  Tax  3,114,000 

Excess  Profits  Tax..        ..  3,849,000 

Land  Values 10,000 

Post  Office       350,000 

Crown  Lands — 

Sundry  Loans — 

Miscellaneous gc,ooo 

Bullion  advances  repaid    ..  70,000 
ForTreasury  Bills  forSupply  73,658,000 

5%  Exchequer  Bonds,  1930  — 

5%  Exchequer  Bonds,  1922..  — 

6%  Exchequer  Bonds,  igzo. .  — 
National  War  Bonds         .  .*ii,994,ooo 

War  Savings  Certificates  . .  3,000,000 

4%  War  Loan,  1929-1942 1  

5%  War  Loan,  1929-1947  f  *  * 
Other  Debts  created  under 
War  Loan  Act,  1915,  and 

Finance  Act,  1916..         ..  24,236,000 

Telegraph  Money  Act,  IQ13  — 
Under  Post  Office  Rly.  Act, 

1913 — 

Under  Military  Works  Act, 

1B97-1Q03      — 

Under  Public  Buildings    ..  — 

Under  Housing  Act..        ..  — 
Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds            — 

China  Indemnity      ..         ..  — 
East    Africa    Loan    repay- 
ments   — 

Suez  Canal  Drawn  Shares, ,  — 

Ways  and  Means  Advances  18,000,000 
Decrease      in      Exchequer 

balances       1,341,349 

1^143.649.369 


National  Debt  Service 

Interest,   &c.,  on  War  Debt     i 

Development  &  Road  Impvt 

Favments  to  Local  Taxation 

Other  Consolidated  Fund 
Charges        

Supply  Services       . .         . .  65 

Bullion  Advances     . . 

For  Advance  for  Interest 
on  Exchequer  Bonds  un- 
der Capital  Expenditure 
(Money)  Act,  1004  . . 

For  Treasury  Bills    ..       ..72 

Other  Debt  under  War  LoaD 
Acts,  ig:i-i6  . .         . . 

For  War  Loan  and  Ex- 
chequer Bonds  under 
Section  6t  of  Finance  Act, 
1916,  and  Section  34,  1917 

Under  Telegraph  (Money) 
Act,  1013 

Under  Post  Office  (Lon- 
don) Railway  Act,  1913.. 

Under  Military  Works  Acts 

Under  Housing  Act,  1914.. 

Public  Buildings  Expendi- 
ture Act,  1903 

Old  Sinking  Fund,  1907-8.. 

Sinking  Fund,  1910-11 

China  Indemnity 

East  African  Loan  . . 

Cunard  Agreement  Act 

Expenditure  Certificates    . . 

Depreciation  Fund  .. 

Suez  Canal  Drawn  Shares. . 

Temp.     Advances     Repaid 

Increase  in  Exchequer 
balancefi       


£ 
376.384 
.772,978 


,000,000 
150,000 


130,000 
,451.207 


751.000 


5,800 


:f  143,649,369 


"^Excluding  sales  tlirough  banks  which  hav9  not  yet  been  brought  to  account 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.). 


Mar.  22,  1918. 

Mar.  15,  1918. 

Mar.  23,  1917. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

94,105,800 
75.973.200 
10,500,000 

£ 

95,504,200 
74,501,600 
10,500,000 

£ 

70,147,200 
41,856,200 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

180,579,000 

175.761.000 

4,222,800 

180,505,800 
173.925.600 

4,2l7,2ro 

112,003,400 

69,903,800 

503,800 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

360,562,800 
rr,Qii.6oo 

3:8,648,600 
r  1.790,00^ 

182,411,000 
2,1^3,000 

Total  reserves  .. 
Bills  discounted— Members' . . 
©ills  bought  in  open  market 

372,474,400 
108,623,800 
65.776,000 

370,438,600 
103,496,800 
64,640,600 

184,544,000 
3,694,600 
17,559.601 

Total  bills  on  hand     .. 
U.S.  Gov.  long-term  sec, 
U.S.  Gov.  short  term  sec,     . 
All  other  earning  assets 

174,399.800 

12,207,800 

45,207,200 

848,00* 

168,146,400 

13,676,600 

38,796,000 

8oS,ooo 

21,254,200 
5,855,000 
3,763,600 

3,174,200 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n . 
Uncollected  items 
Total  dedctns.  fm  gross  dep. 
5%Red.FundagFed.Res.bknts 
All  other  resources 

232,662,800 

1,760,200 
73,564,200 

221,427,000 
2,321,800 
71,429.400 

34,047,000 

659,600 

29,151,400 

75,3«4,400 
107,400 

110,000 

73,75i,a;o 
107,400 
290,400 

29,Sil,000 

80,000 

1,114,000 

Total  resources 

63o,679,oco 

666.014,600 

249,596.000 

Capital  paid  in 

Sur-ptus 

Government  deposits  .. 
Due  tomembrs  — Res.  account 
Collectiun  items 
Otherdcpsinc  For.Govt  crdts 

14,802,200 
226,800 
iS,30i,ooo 
296,005,000 
45,823,000 
16,350,200 

■4.777,200 

226,?00 

14,404,600 

2-9.599.400 

46,441,400 

iP,20-),6oo 

11,211.400 

3,940,400 
142,223,400 
22,756,800 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R,  bk  nts  in  circn— nettliab. 
AU  other  liab,  in  for  Gov  crdt& 

376,479.200 

2?5.90i.8oo 

t,595.6oo 

1,673,400 

366,655,0.0 

381,245,600 

1,600,000 

1,510,000 

168,920,600 
69,360,800 

103,200 

Total  liabilities 

680,679,000 

666,014.600 

249,^96,000 

Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Katio  of  eold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio    of    total    res.    to    neti 
deposit  and  F.R.    note  lia- 
bilities comb  aed 

59-6% 
63.0% 

61.4% 

63.4% 

6,. 6% 
63-3% 

62.5% 

64.5% 

80.5% 
101.5% 

87.5% 

88.5% 

MEW  YORK  STATE  BANKS  &  TRUST  COMPANIES   (dollar  at  4s.) 


Loans  .. 
Specie 
Deposits 
Legal  Tenders 


April  20,  igi8, 


£ 

153,790,000 

3,102,000 

143,824,000 

13,228,000 


April  13,  igiS. 


,364,0. 


[52,364,000 

3,044,000 

142,370.000 

13,340,000 


April  6,  1918. 


150,082,000 

3,014,000 

142,022,000 

13,610,000 


April  21, 1917. 


161,178,000 

13,848,000 

171,930,000 

2  252,000 


MEW   YORK  ASSOCIATED   BANKS   (dollar  at  4s.). 


Loans        

Reserve  held  in  own  Vaults  . . 
Reserve  held  in  Fed.  Res.  Bk. 
Cash  in  own  Vaults     . . 
Reserve  held  in  Other  Depos. 
Nett  Demand  Deposits 
Nett  Time  Deposits     . . 

Circulation         

EzoesB  Lawful  Reserve 


898,830,000 

3,464,000 

106,090,000 

20,848,000 
1,668,000 
753.740,000 
36,328,000 
7,214,000 
10,970,000 


£ 
872,890,000 

3,478,000 

105.174.000 

21,085,000 

1,670,000 

750,858,000 

36.42^000 

7,180,000 

10,430,000 


£ 

861,102,000 

3,438,000 

107,534,000 

20,600,000 

1,788,000 

751,764,000 

37,094,000 

7,168,000 

12,746,000 


734,706,000 
g4,304',ooo 
44,182,000 

12,38^,000 

741,692,000 

39,536,000 

3,742,000 

22,956,000 


Lawful  Reserve  consists  of 
Xhne  Deposits. 


18%  of    the  Demand  Deposits  and  5%  of    the 


BANK 

OP   FRANC 

April  18,  1918. 

E   (25  francs  to  the  £). 

April  11, 1918. 

April  4,  1918. 

April  19,  1917. 

f 

£ 

■    £ 

Gold  In  hand 

133.623,360 

135,568,080 

133,516,680 

131,392,680 

Silver  In  hand 

10,143,040 

10,205,320 

10,198,640 

10,316,520 

Bills  discounted 

57,649,760 

63,330,6)0 

72,667,640 

19,806,640 

Advances 

44,079,9*' 

45,142,920 

44.557.440 

46,777,160 

Note  cirouiation 

1,049,270,840 

1,043,471,360 

1,033,915,360 

760,068,760 

Public  deposits 

1,679,000 

2,287,363 

3.356,480 

3.889,480 

Private  deposits 

128,540,280 

131,878,200 

125,053,760 

97,698,000 

Poreien  Bills.. 

425,400 

462,000 

485,040 

57.960 

Proportion  between  bullion  and  circulation  21.47  per  cent., against  21.51  pec 
cent,  last  week.  Advances  to  the  State  ^f 6 14,000,000,  increase  £10,000,000.  The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium,  1^19,312,480, 
decrease  £"3.640,  ind  at  the  branches  £24,669,640,  decrease  £47,240. 

IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  £). 


April  15,  1918.  April  6,  1918,   Ma"".  30,  1918.  April  14, 1917. 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances 
Note  oiroulation 
Deposits 


£ 
126,409,400 
73,023,300 
698,240,700 
317.750 
586,359,900 
368,765,900 


126,375,750 

76,077,950 

710,137,950 

299,150 

595,852,300 

379.745, '.so 


126,343,800 
76,937,950 
801,712,950 
323,100 
598,890,350 
451,478,450 


127,433,250 
22,203,100 
477,613, 8co 
522,700 
417,977,700 
234,590,600 


Clearing  House   return    during   March    £439,8i5,355,    against    £420,879,905 
in  Fgbruary. 

BANK    OF    SPAIN  (25  pesetas  to  the  £). 


Apnili3,i9i8  April  6, 1918  Mar.  30,1918  Aprils,  1917 


Gold        

Silver      

Foreien  Bills  .. 
Discounts  and  bliort  Bills  .. 
Treasury  Account,  &c.  .* 
Notes  In  Ciroulatiun  .. 
Current  Accounts,  Deposits 
Olvldenas,  Interests,  &c.  .. 
Government  Securities 


f 

80,877,818  j 

28,171,310 

3,644,077  I 

30,977,141 

24,986,708  I 

116,576,005  1 

35,234,664 

1,850,053 

3,788,563 


£ 

80,570,477 

28,127,316 

3,582,025 

31,528,74.6 

24,963,401 

116,024,147 

34,823,592 

2,241,986 

4,283,847 


BANK    OF    SWEDEN  (18  kroner  to  the  £). 


Gold 

Balance    abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  .. 
Discounts  and  Loans 
Notes  in  circulation 
Deposits  at  notice  .. 


Apr.  6, 1918.  Mar.  30,  1918.J  Mar.  »2,  1918.    Apr.  7,  1917. 


£ 
14,331,000 

7,307,000 

3,904,000 
15,769,000 
34,662,000 

6.552,000 


£ 
14.337.000 

7,306,000 


£ 
13,599,000 

7,287,000 


£ 
10,727,000 

7,598,000 


3,920,000  1      3,937,000  3,300,000 

15,844,000  14.755,000  1  9,996,000 

35,037.000  32,173,000  I  24,186,000 

7,062,000  8,138,000  !  7,607,000 


NETHERLANDS  BANK  (12  Florins  to  the  £) 


Gold  and  Silver 
Bills  and  Advances 
Note  circulation 
Deposits .  ^_^_   .. 


BANK   OP   ITALY   (25  lire  to  the  £). 


Feb.aS.igiS.'Feb  20, 1918 


Feb.  10, 1918 


Total  cash 
Inland  Bills 
Foreign  Bills    . . 
Advances 

Government  securities 
Circulation 

Deposits  at  notice      .. 
Current  accounts 


£ 

43,772.240 
29  816,360 
897,360 
24,284,400 
8,795,840 
267,249,200 
33,864,520 
20,090,520 


£ 

38,300,240 

29,404,200 

887,840 

20,564.920 

8,^13,240 

264,926,160 

38,043,^20 

21,712,640 


Mar.  1,1917' 


£ 

43,0-4,880 
29,467,480 
4,426,000 
22,346,440 
8,806,160 
263,291,560 
35,555,840 
19,574.560 


£ 

43.338.360 

21,217.640 

838,920 

19,412,400 

8,697,520 

154,639,760 

19,255,960 

11,482,640 


SWISS  NATIONAL  BANK  (25  francs  to  the  £). 


Qold  and  silver 

Bills 

Note  circulation     .. 
Current  and  deposit 
accounts 


April  15, 1918. 


3,532,2<4 


April  6,  1918. 


£ 

■  7,141,492 
12,655,9^2 
27,349,676 

5,220,3^6 


Mar.  30,  1918 


£ 

17.059,668 
12,296,232 
27,825,172 

4.375,824 


April  14, 1917. 


£ 

15.745,624 

7.205,336 

20,283,500 

4,353,452 


BANK  OF  NORWAY  (18  kroner  to  the  £). 


April  8,  1918. 


Gold 6,737,000 

Balance  abroad  and  I 

Foreign  Bills        ..  3,429,000 

Gover'nt  Securities. .  713,  wo 

Discounts  &  Loans.  18,614,000 

Notes  lu  Circulation  19  390,000 

Deposits  at  notice..  I  6,974,000 


Mar.  30, 1918. 


Mar.  u,  1918. 


£ 
6,739,000 

3,340,000 

713,000 

18,473,003 

19.255,000 

6,834,00c 


April  7,  1917. 

£ 
7,227,000 


£ 

6,741,000 

3,619,000  4,182, coo 

713,000  706,000 

18,792,000  j     10,244,000 

l88,30),ooo  15.436.000 

7,880.000  '        4,923.000 


4'4 


^be  Jnvestots'  IReview. 


.^l'RIl.  27,  1918. 


LONDON  COURSE  OP  EXCHANGE. 


Plioa, 

(Jtaaca. 

April  23,  1918. 

April  2j,  1918' 

Sellns. 

Bnyers. 

Sellers. 

Buyers. 

Amsterdam.,     ,. 
Paris      

Switzerland..     .. 

Genoa,  &c 

Spain     

Lisbon  and  Oporto 
Copenbagen..     .. 
Christiania  ..     .. 
Stockliolm    ..     .. 

Caljle  transfers 

Cable  transfers 

Three  inontlis' bills..     .. 

Cable  transfers 

Three  months'-bills.,     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills  . .     . . 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

9-97 
27-13 
27-55 
20.03 
ao.38 
42,40 
17.20 

64! 

2S1 
15-15 

15  00 
J4-00 

10.02 
27-18 
27.60 
20.13 
20.48 
42.50 

u\ 

15-25 
15-10 
14.10 

994 

27.14 
»7.55 
20.03 
20.38 
42.45 

641 

»8f 

15-15 

15-07 

14.04 

9.98 
27.19 
27.60 
20.13 
20,48 
4255 
17.6) 
65* 
29} 
15-25 
15.17 
14.14 

FOREIGN  RATES  OF  EXCHANGE  ON  LONDON. 


Method  of 

0  S 

Last 

This 

Quoting. 

Week. 

Week. 

Paris,  cheques 

Francs  10  ft 

25.22J 

27.t6J 

27-15J 
9-95i 

Amsterdam,  cheques 

Florins  to  jf  i 

12.107 

10. 01 

Italy,  sight 

Lire  to  ^i   .. 

25-224 

25.22J 

42.52 

42.55 

Madrid,  sight 

Pesetas  to  f  i 

17.60 

17-65 

Lisbon,  sight 

Pence  to  miireis  .. 

53ld. 

29d. 

298<l- 

Switzerland,  sight    . . 

Francs  to  ^1 

25.22J 

20.13 
15.06 

20.07J 

Christiania,  sight      .. 

Kroner  to^'i 

18.159 

15.10 

Stockholm,  sight 

Kroner  to  jf  I 

18.159 

14.05 

14.10 

Copenbagen,  sight    . . 

Kroner  to  jf  I 

18.159 

15.24 

15-24J 

Petrograd,  sight 

Roubles  to  £ic     . . 

94-57 

nom. 

nom. 

AJexandria,  sight 

Piastres  to  £1 

97* 

97J 

97 

Bombay,  T.T. 

Sterling  to  rupee.. 

1/4 

1/5A 

1/5  i 

lis  t 

Calcutta,  T.T. 

Sterling  to  rupee.. 
Sterling  to  dollar.. 

1/4 

1/5A 

Hong  Kong,  T.T,     .. 

3/ii 

3/ii; 

Shanghai,  T.T. 

Sterling  to  tael     . . 

— 

4/51 

4/5 
2/4 

Singapore,  T.T. 

Sterling  to  dollar.. 

— 

2/3IS 

YoVohama,  T.T. 

Sterling  to  yen     . . 

24.58d. 

^'ih 

2/2i 

New  York,  cable      . . 

Dollars  to  £1 

4-868 

4-763 

Buenos  Aires,  T.T... 

Pence  to  dollar    .. 

47-58d. 

Sljd. 

5ld, 

Valparaiso,  90  days.. 

Pence  to  peso 

"SMd. 

Montevideo,  T.T.     .. 

Pence  to  dollar     . . 

5id. 

643)d. 

64d. 

Rio  de  Janeiro,  90  days     . 

.    Pence  to  miireis  .. 

i6d. 

i3.Ad. 

i3Ad. 

OPEN    MARKET   DISCOUNT.  Last  week. 

Percent. 

Thirty  and  sixty  day  remttted 

Three  months  ,,  ••         ••         •• 

Pour  months  ,,  ,.         ..         .. 

3ix  months  ,  

Fhree  months  fine  inland  bills  

Pourmontbs  

Six  months 

BANK    AND   DEPOSIT    RATES 


Bank  of  England  minimum  disoount  rate 
,,  ,,         short  loan  rates 

Bankers' rate  on  deposits 

BiU  brokers'  deposit  rate  (call) 

„  7  and  14  days'  notice 

Current  rates  for  7  day  loans 
,,  for  call  loans 


:  sii 
'■  ■iM 

..    4J-I 

Last  week 
Per  cent. 
5 


3 
3 

3i 

2j— 3 


This  week 
Per  cent. 

•  •  3A-i 

::  3j?-*ft 
••  34-8 

"  4-| 

•  •    4j-i 

This  weeti 
Per  cent. 
5 

3 
3 

•  •     3-i 

..       2—3 


The   Week's    Stock    IVlarkets. 


So  far  as  dealings  are  concerned,  it  has  been  a  poor  week 
on  the  Stock  Exchange,  but  on  the  whole  the  feeling  has  been 
amazingly  confident,  and  in  the  great  majority  of  cases  move- 
ments  have  been  in  favour  of  holders.  First  of  all  the  Budget 
proposals  were  not  nearly  so  drastic  as  many  people  feared, 
and  although  the  purchasers  of  the  tax-compounded  4  per  cent. 
War  Loan  have  obtained  a  temporary  advantage  by  the  increase 
in  the  rate  of  income-tax,  with  the  result  that  the  price  of  the 
issue  has  had  to  be  raised  from  par  to  loij,  there  are  comp.ira- 
tively  few  of  the  holders  of  the  5  per  cent.  Loan  who  would 
exchange  into  the  other,  even  if  they  were  given  the  oppor- 
tunity. The  fine  story  of  the  Navy's  brilliant  exploit  on  the 
Belgian  coast  had  a  very  exhilarating  effect,  and  on  the  whole 
the  news  from  the  Western  front  has  been  quite  as  favourable 
as  could  reasonably  be  expected  in  the  circumstances.  But  these 
things  do  not  tend  to  encourage  business  to  any  great  extent, 
and  with  a  revenue  of  840  millions  to  find,  even  the  lavish  ex- 
penditure to  which  the  country  is  committed  will  be  put  to  a 
pretty  severe  strain  as  a  means-  of  raising  the  money.  Roughly 
speaking,  we  require  about  one-third  of  the  war  expenditure 
back  in  the  form  of  taxation,  either  direct  or  indirect,  and 
that  is  a  very  heavy  proportion,  especially  as  so  much  of  the 
money  goes  into  pockets  from  which  the  country  derives  no 
immediate  benefit.  So  we  need  not  look  for  any  decided  advan- 
tage to  the  Stock  Exchange  in  the  near  future,  not  even  if  the 
Hun  ons-laughits  were  to  be  definitely  crushed  to-morrow. 

Very  little  business  has  been  transacted  on  the  Stock  Ex- 
change  this  week,  but  on  the  whole  the  feeling  has  been  much 
more  cheerful  than  might  have  been  expected,  all  things  consi- 
dered. The  Budget  proposals,  especially  with  regard  to  income- 
tax,  were  less  drastic  than  had  generally  been  feared,  and 
while  the  new  German  activity  on  the  Western  front  continues 
to  cause  a  good  deal  of  anxiety,  the  splendid  little  Naval  incident 
at  Zeebrugge  helped  to  put  heart  into  markets.  With  regard 
to  gilt-edged  stocks,  the  principal  movement  was  in  the  4  per 
cent,  tax-free  War  Loan.,  which  at  one  time  advanced  oveir  a 
point  owing  to  the  stoppage  of   sales   at  par   by   the  Bank  of 


England  and  to  the  fact  that  on  the  basis  of  the  new  taxation 
the  stock   works  out  at    loi^.     The  5  per   cent.    Loan   at  first 


I  Last 
{Week 


Consols 

War  Loan   3*% 

5%   1929-47.. 
.    ,    ..  4%,  i9i9-4a.. 

India  3%  

..     34% 

Australian  5}%,  1920-22  .. 

Canada  4%,  1940-60 

4j%,  1920-5   

Argentine  5%  1886 

Belgian  3% 

Brazil,  1913 

„,  ..      5%,  1914    

Chinese  1896  


131; 


Egypt  Unified  4% 

Caledonian  defd 

Gt.  Central  pm 

,,       „        dfd 

Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd.  .. 

London  Chatham  ord 

Canadian  Pacific  

B.  Indian  Guar.  4)  %  debs. 

Grand  Trunk  ord.    

Do.  1st  pf 

Do.  3rd  pf 

Antofagasta  dfd 

B.  A.  &  Pacific  

B.  A.  Gt.  Southern 

B.  A.  Western    

Cent.  Argentine  ord 

Anglo-South  American    . 

Bank  of  Australasia 

Bankof  N.S.  Wales 

Barclay  &  Co.  "  A  " 

Do.       "B" 

Capital  &  Counties    

Chartered  of  India    

Hongkong  &  Shanghai    . 

Lloyds  I 

Armstrong,  Whit  worth  ..  | 
Birmingham  Small  Armsi 

Cammell-Laird I 

Cargo  Fleet ' 

Davis,  D.,5/   

Dorman,  Long   

Associated  Cement 

Borax  dfd 

Bovril    

British  Amer.  Tobacco  pf . 

British  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Kellner 

Eastern  Telegraph   

J£astmans ....  

Ounard 

Furness,  Withy 

P.  &0.dfd 

Royal  Mail 

Anglo-Argentine  1st  Pf... 

Brazil  Traction 

Darracq    

Anglo-Egyptian  "B"  .... 

Burmah 

Lobitos 

Mexican  Eagle  pf 

North  Caucasian 

Roumanian  Cons 

Allagar  2/- 

Anglo-Dutch,  £[    

Anglo-Java  Rub.  a/-     .... 

Anglo-Malay  2/ 

Ayer  Kuning  £1 

Brit.  N.  Borneo  Trust  £1 

BukitCloh2/- 

Bukit  Mertajam  2/-  

Bukit  Sembawang  2/-  .... 

Carey  United  £1   

Chersonese 

Cheviot  2/-  

Dalkeith  2/- 

Grand  Central  £1 

Highlands  £1 

Java  Investment  £z 

Johore  Rubber  Lands  £1 . . 

Kamunin .;  2/- 

Kinta  Kella5  2/-  

Labu2/- 

Langen  Java  £1 

Linggi2/- 

London  Asiatic  2/- 

Malayalam  £1 ,,, 

Merliinau  2/-    

Bechuanaland  Exp 

Brakpan  

Broken  Hill  Prop.  (8/-)   .. 

Cam  &  Motor 

Central  Mining  (£12)  .... 

Chartered    

City  Deep     

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  M  ines  1 10/-) 

De  Beers  dfd.  (£a  10s.)  .. 

East  Pool(;/-) 

East  Rand   

Geduld 

Geevor  (10/-)   

Gov,  Areas  MCK?     

Gt.  Boulder  (2/.I    


N.S.W.  5%.  "921-3    

„       »%■  1920-2 

„      5J%Debs 

New  Zealand  4%,  1929  . . 
Queensland  4)%,  1920-5  . . 
S.  Australian  5*%  1922-7. 
Union  of  S.  Africa  4i%. 

1920-5    

Victoria  4j%.  1920-5 

Westn.  Aus.  4%    

French  War  Loan,  5%  .. 
Japan  4j%  (isi),  1905   .... 

5%.  '907 

Mexican  5%,  1S99    

Russia  4   % 

„      4l%,  i9'--9 

..      5%,  1906 

London  and  N.-W.  ... 
London  and  S.-W.  dfd.  . 

Metropolitan 

Mel.  District 

Midland  dfd 

Nth.  liritish  did 

Nth-Eastern 

Stb.-Eastern  dfd 


Chesapeake. 

Brie 

Southern  . . . 


Leopoldina 

Mexican  ord 

San  Paulo  (Brazilian). 
United  of  Havana 


Last 
.Week 


London  &  Brazilian 

London  City  &  Midland. 
London  County  &  Westt. 

London  Joint  Stock 

Nat.Prov.(ifioJpd) 

Do.  (£12  pd) 

Standard  0/ S.A 

Union  Discount 


Kynochs  

Mond  Nickel  ord 

Nobel,  £1    

South  Durham  Steel   .... 

Thornycroft    

Vickers 

Forestal  Land 

Hudson's  Bay    

Imperial  Tobacco  '  C  '  pf . 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

Pears,  A.  &F 

Underground  Inc.  Bds.  . . 


Coats 

Courtaulds 

English  Sewing  Cotton  . 
Pine  Cotton  Spinners  . . . 
Harrods  Stores 


Demais  Bros 

National  Steam  Car. . 

Rolls-Royce 

Shell 

Spies  (10/-) 

Trinidad  Leaseholds 

Ural  Caspian 

Venezuelan 


iPerak  2/-  

I  Port  Dickson  2/-   

jRub.  Estates  Krian  2/-. 

Rubber  Trust  £t 

Sampang  (Java)  2/-... 

Seaport  £1 

Sengat  2/- 

Seremban  £i 

Sialang  £1   

Singapore  Para  2/-    . . . 
Singapore  United  2/-    . 


36 
»7 
182 
72J 


TBIF 
Week 


97 

97 

9» 

9* 

101 

101- 

84' 

84 

92 

9» 

99 

99 

934 
92i 

93 

92 

79 

79 

75i 

77 

92 

93 

S3 

86 

57 

57 

3t4 

334 

15 

35 

424 

424 

87 

874 

21 

"i 

14 

55 
13 
9?i 


18 

224 


361 

16 

182 
72 


*5,. 

^'. 

.If 

4 

28i 

2(4 

25 

25 

29 

M 

11 

lix 

loj 

>o4 

35/6 

40/ 

1» 

3i 

67/ 

71/ 

44/ 

42/6X 

40/ 

40/ 

41/ 

43/6 

47/6 

47/6 

74 

?■/» 

33/6 

33/6 

20/6 

20/fc 

If. 

3A 

"M 

le/x 

H 

76 

744 

Patalinga/- 

Straits  Berlam  2/- . 
Sumatra  Para  2/-. . , 
Sungei  Bahru  £1  . 

Taiping  2/- 

Tandjong  £1 


Tandjong  Malim  £t,, 

TelHau  £t 

Telogoredjo  ^i 

Tempeh  2/- 

United  Serdang  2/-  , . 

Vald'Or  2;- 

Vallambrosa  s/- 

Kysbtim    

Mashon aland  Agency 
Meyer  &  Charlton    .. 

Modder  *•  B  " 

Do.    Deep .,, 

Mysore 

Nigerian  Tin 

Pahang  (3/-) 

Rand  Mines  (5/-)    .... 
Renons 


Rio  Tinto{jf5)   ... 

Russo-Asi  itic 

South  Crcfty  (5/-) . 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep   . . . 


54 

6« 

53/ 
33/ 
2i 

35/6 
■7/ 
H 

5H 
5/6 

3>V6 

"J 

7/ 
4/ 

3/5 
26/6 
2/4 
25  9 
2/11 
36/9 

ei/e 

4/ 

2/IOi 

40/6 

6/ 
7/104 
36/44 

4/ 
87/ 
30/6 
62/ 
40/ 
2/34 

9/74 
3/6 
19/9 

i 

6/ 

2IH1 
1 

12/6 

64 


34! 


5? 

7lSi 
52/ 
34/ 

24 

35/& 
'7/3 

i| 

5i 

5/6 

'k 

7f 
4/ 

3/5 
27/3 

2/54 

25/9 

3i 

36/9- 
65/ 
4/ 
3/04 

39/9 

6;if 

7/ioi 
36/ 
4/ 
88/6 

30/6 

65* 

41/ 

2/4J 
10/ 

3/74 

19/6 

i 

I 

a 

21/6 

12/6- 


3A 


gave  way,  but  afterwards  recovered  the  ground  lost.     Consols 
also  were  good,  and  Transvaal  3  per  cents,  received  some  sup- 


April  27,   1918. 


Ube  Jiivestors'  IReview. 


4'S 


port.  Colonial  issues  mostly  were  steady,  but  very  few  move- 
ments occurred,  and  the  number  of  transactions  recorded  was 
quite  trifling.  More  interest  was  displayed  in  Foreign  bonds, 
with  French,  Japanese,  and  Brazilian  fairly  prominent. 
Spanish,  however,  showed  the  most  sensational  movements 
owing  to  the  wide  fluctuations  in  exchange,  and  after  ad- 
vancing 4  points  they  left  off  practically  at  the  starting  point. 
Russians  were  weak,  but  Greek  Monopoly  received  some  sup- 
port. 

Home  Kailways  came  into  some  favour  owing  to  the  Budget 
being  more  favourable  than  had  been  anticipated,  and  most  of 
the  leading  stocks  gained  a  fraction.  Dealings,  however,  were 
on  a  very  small  scale.  American  Railroads  were  dull  where 
thev  moved  at  all,  but  the  movements  as  a  rule  were  quite 
trifling.  International  Mercantile  Marine  preference  lost  2 
points.  Argentine  Rails  generally  were  firm,  and  were  not 
much  affected  by  the  latest  news  about  another  general  strike 
on  the  Buenos  .\yres  and  Pacific.  Canadian  I'aoifics  wen;  rather 
dull,  and  Trunks,  after  showing  a  certain  amount  of  strength 
on  the  statements  at  the  annual  meeting,  fell  back  and  left  off 
without  much  change.  Me.xicans  were  decidedly  weak  for  no 
particular  reasons  except  that  there  is  no  support  at  present, 
and  United  of  Havana  also  gave  way,  but  Antofaga.stas  were 
conspicuously  strong. 

Bank  shares  were  firm,  but  seldom  changed  hands.  Breweries 
were  dull  on  the  Budget  proposals,  which  will  tend  to  curtail 
the  publican's  profits.  Guinness's  lost  as  much  as  10  points 
and  City  of  London  also  gave  way,  buit  Allsopps  and  Watneys 
were  something  to  the  good  at  the  finish.  Egyptian  securities 
continued  in  favour.  Salt  and  Soda  and  several  others  putting 
on  substantial  gains.  Iron  and  Steel  shares  have  been  par- 
ticularly good,  and  nearly  all  the  active  list  has  advanced  a 
good  fraction.  Among  Land  shares,  Hudson's  Bays  gave  way 
rather  sharply,  but  Nigers  improved  on  a  moderate  amount  of 
buying.  Nitrate  shares  were  in  little  request,  but  the  tone  was 
satisfactory.  Shipping  shares  moved  upwards  where  any 
change  occurred,  in  spite  of  the  rather  poor  results  now  being 
declared.  Among  Mi-sceHaneous,  Industrials,  Coats  and  Cour- 
taulds.  Calico  Printers,  'Salt  Unions  and  Welsbachs  all  im- 
proved to  a  substantial  extent,  but  Sewiiig  Cottons  were  weak. 
Brazilian  Tractions  had  a  sharp  advance  at  one  time,  but 
closed   below  the  best. 

Oil  shares  generally  ha,ve  been  wonderfully  firm,  with 
"  Shells,"  Trinidad  I,easeholds,  Ural  Caspians  and  Venezuelan 
Concessions  all  moving  steadily  upwards ;  but  some  of  the 
smaller  shares  in  the  Russian  division  gave  way  where  they 
changed  hands  at  all.  Rubber  shares  at  one  time  showed  con- 
siderable strength,  owing  to  the  advance  in  the  price  of  the 
commodity  to  29.  6d.,  and  although  that  level  has  not  been 
maintained,  the  feeling  has  continued  wonderfully  confident. 
The  reduction  in  certain  of  the  dividends  announced  is  re- 
garded as  purely  temporary,  and  the  fact  that  there  has  been  no 
change  in  the  e.xcess  profits  duty,  which  was  rather  feared  in 
some   qnarters,   has  helped   to  strengthen    the  market. 


LONDON    PRODUCE   MARKETS, 


Actual  transactions  were  confined  to  a  moderate  compass  in 
most  directions,  buyers  merely  operating  in  order  to  fulfil  pressing 
requirements,  though  prices  maintained  a  steady  level. 

Sugar.— Prices  were  raibtd,  in  unison  with  the  increased  duty 
now  in  force.  Tate's  cubes,  crushed  caster,  and  pulverised, 
64s.  gd.  ;  granulated  and  white  pieces,  57s.  gd.  ;  pieces  other  than 
white,  55s.  6d.  Lyle's  granulated,  also  white  and  yellow  crystals, 
57s.  gd.  Crystallised  West  India,  57s.  gd.  ;  muscovado  and  syrups, 
55s.  6d. 

Coffee. — This  market  continued  without  new  feature,  trade 
being  of  retail  proportions  and  tendency  of  prices  weak.  Future 
delivery  market  idle. 

Cocoa. — There  was  a  fair  inquiry  for  the  small  quantities  on 
offer.     Sales  include  Grenada,  80s.  to  85s. ;  Ceylon.  g6s. 

Spice. — Moderate  sales  resulted  in  pepper,  and  the  market  ruled 
steady.  Fair  black  Singapore,  spot,  sold,  is.  4d. ;  white  ditto, 
quoted,  2s.  2jd. ;  Muntok,  sold,  2S.  2^d.  Cloves  firmer,  and  fair 
Zanzibar,  spot,  sold,  2S.  sd.  Pimento,  quoted,  5jd.  Tapioca 
quiet  of  sale,  but  steady. 

Rice  continued  in  steady  support,  also  beans  and  peas. 

Hemp. — Moderate  transactions  occurred  at  regulation  rates. 

Shellac  nominal,  actual  trade  being  quite  retail. 

Rubber  very  unsettled  during  the  week,  while  influenced  by  the 
position  of  the  American  market,  and  business  was  on  a  fair  scale. 
Plantation,  spot,  crepe,  sold,  2S.  5Jd.,  2s.  6d.,  2s.  jd.,  and  26.5.ld. ; 
May-June,  2s.  5jd.,  2s.  6|d.,  2s.  5Jd. ;  July-December,  2s.  7d., 
2s.  7jd.,  2s.  6Jd.,  2s.  6jd.  Ribbed  standard  smoked  sheet,  spot, 
sold,  as.  4jd.,  2s.  sd.,  2s.  4jd.  Fine  hard  Para,  spot,  sellers, 
3s.  2d.  ;  soft  fine,  3s.  ;  ball,  is.  gd. 

Peppermint  Oil  slow.  Japanese,  spot,  3s.  gd. ;  and  menthol, 
14s.,  sellers. 

Corn  (Mark  Lane). — The  moderate  offers  this  week  met  with 
ready  attention,  a  fully  steady  tone  being  maintained  throughout. 
Of  imported  wheat.  No.  i  Northern  Manitoba  sold  at  8is.  6d.  ; 
hard  winters.  No.  2,  quoted  at  80s.  gd.  Australian,  83s.  6d.  to 
84s.  3d.  Flour;  Imported  grades  range  at  50s.  3d.  to  51s.  3d.,  ex 
warehouse,  English,  44s.  3d.  per  sack,  ex  mill.  Barley:  English 
milling,  nominal,  at  62s.  gd.  to  63s.  gd.  Maize  :  American  mixed 
changed  hands  at  ygs.  gd.  to  82s.  ;  and  some  white  South  African 
at  88s.,  delivered,  latter  being  for  seeding  only.  Oats  :  American 
white  clipped  No.  2  sold  at  6is.  6d.  English  held  for  47s.  jd. 
per  qr. 


Cotton  (from  our  Manchester  correspondent). — The  conditions- 
in  the  market  during  the  past  week  have  been  too  unsettled  for 
anything  more  than  a  retail  business  to  be  done.  Wide  fluctua- 
tions have  occurred  in  raw  cotton  rates,  and  a  further  drop  in 
values  his  occurred  towards  the  close  of  the  week.  Spinners  and 
manufacturers  have  stood  their  ground  remarkably  well,  and  quota- 
tions in  yarn  and  cloth  have  not  fallen  to  anything  like  the  same 
extent  as  raw  material  rates  in  Liverpool  and  New  York.  The  Cotton 
Control  Board  has  decided  to  take  another  census  of  raw  cotton 
stocks  in  the  hands  of  spinners,  and  the  returns  have  to  be  com- 
pleted this  week.  It  is  expected  that  the  statistics  will  be  avail- 
able early  next  month.  It  is  impossible  to  account  for  the 
many  ups  and  downs  in  the  raw  material  markets,  and  movements. 

CURRENT     PRICES    OF    CHIEF    ARTICI.ES. 

WEEK   ENDING    APRIL  s6    191S 


Last 

Tols 

Last 

This 

Week. 

Week. 

Week. 

Week. 

la^ar— pet   cwt. 

£   ».    d. 

£    ..  d. 

Wool— per  lb. 

C  s.  d. 

£    s.  d. 

duty   25  8,  98% 

A  u  s  t  r  a  1  i  a  n 

polarisation 

Scoured  Merino 

nom. 

nom. 

Tate's  Cubes 

2  13    9 

3    4     9 

Scoured  Cr'ssbr'd 

nom. 

oom. 

Cwshed 

2  13    9 

3     4    9 

Greasy  Merltio    . . 

nom. 

nom. 

Gcaimlated  ..     .. 

2     6     Q 

2  17    9 

Greasy  Crossbre^: 

nom. 

nom. 

Lyle's  granulated 

269 

2  17    9 

New    Zealant^ 

Foreign        granu- 

(scoured) Merino 

nora 

nom, 

lated,  first  marks 

Greasy  Crossbred 

nom. 

nom. 

f.o.b.,  spot 

nom. 

nom. 

Cape  snow  white 

nom. 

nom. 

GermanCubef.o.b. 

nom. 

nom. 

French  Cube 

Indlarubberp.lb 

prompt 

nom. 

nom. 

Plantation,      Spot 

Crystallised,  West 
India 

269 

2  17    9 

Crepe 

024 

0    2    ? 

Beet,    88%    f.o.b. 

nom. 

nom. 

Goal — pec  ton 

Durham,  best     .. 

nom. 

oom. 

Tea— per  lb.,  duly 
Indian  Pekoe 

■i.d.  s.  d. 

s.  d. 

Seconds       . .     . . 
East  Hartlepool.. 

nom. 
Dom. 

nom. 
nom. 

nom. 

I  4 

Seconds       ..    .. 

nom. 

nomv 

Broken    ,, 

nom. 

I  4 

Steams,  best.     . . 

^2    6 

32  6 

Orange    „           '.. 

nom. 

I  4 

Seconds       . .     • . 

29    6 

29  6 

Broken    ,, 

nom. 

I  4 

Pekoe    S-)acbong 

nom. 

1  4 

Lead— per  ton. 

i     a.  d 

£    s.  d. 

Ceylon  Pekoe     .. 

nom. 

I  4 

English  Pig..     .. 

nom. 

nom. 

Broken    ,, 

nom. 

I  4 

Foreign  solt,  net 

/;j95-£s8} 

£29i-£m 

Orange    ,, 
Broken 

nom. 
nom. 

I  4 
1  4 

Qulck»ll«er— per 

Pekoe  Souchong 

nom. 

'  * 

bottle  firsthand 

nom. 

nom. 

Cocoa  —  per  owt. 

s   d.  s.  d. 

s.  d.  s  d. 

Tin — pec  ton 

duty  6d.  per  lb. 
Trinidad — per  owt 

English  Ingots     . 

^337 

£356-f35» 

up  to  90  0 

86  0  90  0 

Do.    bars 

^338      . 

^357-jf359' 

Grenada       . ,     . . 

„   ,,   85  c 

80  0  85  0 

Standard  oash    . . 

£330 

£■350 

West  Africa..     .. 

„    >i   65  c 

60  065  0 

Tin  Plates, per  box 

nom. 

nom. 

Ceylon  Plaotation 
Guayaquil    . .     . . 
Ooffee — per    cwt. 
duty  42/- per  cwt. 
Sast  India    ..    .. 

Jamaica 

Costa  Rioa  ..     .. 

,,   ,,  100  0 
,,    ,,   90  0 

108-0  133-0 
77-0  150-0 
log-o  115-0 

78  0100  0 
up  to  90  0 

iioo  133  0 
77  0  150  0 
1100  137  0 

Copper — per  ton. 

English,    Tough, 

per  ton      . .    . . 

Best  Selected    .. 

Sheets 

Standard      . .    . . 

nom. 
£iig-£i23 
.  £'«  , 
£iio-iiol 

nom. 
rii9-£i23. 

jTllO-IIOj. 

Provisiong— 

Jute— per  ton. 

Native   firsts    for 

Butter,  per  cwt. 
Australian  finest 

252; 

252/ 

shipment 

nom. 

nom. 

Argentine     . .     . . 
Irish  Creameries 
Dutch  ditio..     .. 

252/ 
nom. 

252/ 
nom. 

Olli— 

Linseed,  per  ton. . 

f58 

if  58 

nom. 

nom. 

Rape,  crude  

£66 

£66 

Russian  finest     . . 
Paris  baskets      . . 
Danish  finest      .. 

nom. 
nom. 
nom. 

nom. 
nom. 
nom. 

Cott'nSeed,cruile 
Petroleum  Oil,per 
Bibs. 

£60 

1/7J 
I/8j 

£6* 

Brittany     rolls  — 
doz.  lb 

Water  White      .. 

1/8J 

nom. 

nom. 

Oil  Seeds, Linseed 



— 

Baoon— per  owl. 

Calcutta— pel  Ion 
Spot 

29  15    0 

29  15   <y 

Irish      

Continental,,     ,, 

nom. 
172/ 

188; 
172/ 

Kape     

£29-1 0^30 

£i9-io£so- 

Canadian      ..     .. 

171/-172/ 

inl-'Tl 

iron— per  ton 

Cleveland  Cash  . . 

American     ..     .. 
aami— pec  cwt. 

171/-180/ 

1711-itoi 

nom. 

nom. 

Irish       

Canadian      ,.    .. 

nom. 

162/-165/ 

nom. 
i62/-t65/ 

Tobacco  —  duty, 
unmanufactured 

American     ..     .. 

i25;-i65/ 

125/-165/ 

8/2  per  lb. 
Maryland  &  Oliio. 

Oh«e«e— per  cwt. 

Dutch 

1 29/6-160/- 

129/6-160/- 

per  lb.  bond    .. 

nom. 

nom. 

Canadian     . .     . . 

nom. 

nom. 

Viiglnialeat. 

0  8 — 2    I 

08-3    I 

English  Cheddar 

126/-168/ 

126/-168/ 

Kentucky  leal    .. 

0  7 — 0  11 

0  7  -0  II 

Wilts  loaf     ..     .. 

nom. 

nom. 

Latakia 

2  0 — 5    0 

20-5    0 

New  Zealand 

nom. 

nom. 

Havana 

I  6—6    6 

16-66 

Klce— per  cwt. 
Japan     

■.    .1. 
41     3 

s.    <1. 
4J    3 

.Vlanila 

Cigars,  duty   10/6 
pet  lb. 

nom, 
2/  upde. 

nom, 
2/  upds. 

Rangoon  2  stars  . . 

26     3 

26    3 

Bggs— per  lao. 

English 

Irish      

Timber — Wood. 

Pitch  t^ine    . .    . . 

500/— 400; 

BOO/—  400> 
iSo/—  7004 

32  0-34  0 

33  0-34  0 

Indian  Teali 

380/— 700/ 

32  0-33  0 

32  6-33  0 

Dauish 

33  0-35  0 

j4  0-36  0 

Turpentine- 

Bpelter- 

American  Spot  . . 

124/3 

124/ 

G.O.B.  as  to  posi- 
tion     

£i4  £iO 

!f54-£50 

Copra— per  ton 

Malabar        ..     .. 

46    0    0 

46    0    0 

Flour— per  sack. 

Cey.on 

46    0    0 

46    0    0 

Country  Straight 

F.M.S.  Singapore 

45  to    0 

45  10    0 

Runs  ex  Mill . . 

44/3 

44/3 

P.M.    Straits      .. 

45  10    0 

45  »o    0 

have  occurred  quite  irrespective  of  any  distinct  change  in  the 
general  situation.  In  the  cloth  market  the  feature  of  interest  has 
been  the  substantial  contracts  placed  in  heavy  materials  and  fine, 
strong  goods  for  the  British  and  French  Governments.  Many 
manufacturers  are  not  quite  so  anxious  for  this  kind  of  work  as  a 
few  months  ago.  Fair  offers  have  been  met  with  in  light  fabrics  for 
India,  with  occasional  sales.  Very  liitle  has  been  done  for  China. 
Most  shippers  to  the  smaller  outlets  have  looked  on.  Numerous 
manufacturers  have  been  harassed  by  the  scarcity  of  yarns. 
American  spinners  have  been  difficult  to  deal  with,  and  small  lots 
to  be  sent  in  at  onco  have  commanded  record  figures.  Buying  for 
distant  months  has  been  restricted.  There  has  not  been  much 
activity  in  export  numbers.  Egyptian  spinners  have  been  very  stiff 
in  quotation,  with  a  rather  irregiilar  demand. 


4i6 


XThe  5rive6tor8'  IReview. 


April  27,  1918. 


The  Week  in  Minos. 


The  uncertainty  regarding  the  new  Military  Service  Act 
having  been  largely  removed  by  Sir  Auckland  Goddes'  explana- 
tions, and  the  Chancellor's  new  taxation  proposals  having 
proved  much  less  drastic  than  had  been  feared,  the  mining 
markets  have  completely  recovered  from  their  recent  depression. 
In  practically  all  departments  quotations  show  a  general  ad- 
vance, but  this  is  to  be  attributed  mainly  to  a  change  of  senti- 
ment and  not  to  any  appreciable  increase  in  the  volume  of 
business. 

South  and  West  Africans. 

The  South  African  market  was  at  first  rather  dull  in  tone  on 
the  report  of  the  Select  Committee  appointed  by  the  l"nion 
Government  to  consider  the  question  of  granting  assistance  to 
the  low-grade  mines  in  order  to  enable  them  to  continue  work- 
ing. All  that  the  Committee  recommends  is  that  the  cost  of 
insurance  and  freight  should  be  reduced  by  the  Bank  of  Eng- 
land from  25s.  per  cent,  to  17s.  6d.  per  cent,  on  the  gold  shipped 
to  it.  This  would  save  the  industry  about  ^^^140,000  per  annum, 
which  sum  is  considered  quite  inadequate  to  meet  the  present 
position  of  the  low  graders,  which  are  very  numerous.  It  is 
also  proposed  to  remit  temporarily  the  Government's  share 'of 
-claim  licences,  but  what  action  the  Government  will  eventually 
take  is  not  disclosed.  The  market  quickly  recovered  from  the 
disappointment  caused  by  this  report.  New  Modderfonteins 
have  risen  J  to  zij,  Modder  B's  and  Deeps  -j\  to  71^  and  7i 
respectively.  Springs  -^  to  3J  on  the  coming  bonus  distribu- 
tions, Brakpans  ^\  to  4}^,  Daggafonteins  i  to  i  11-32, 
and  Gold  Mines  Investments  2s.  to  20s.  Randfon- 
tein  Estates  have  rallied  gd.  to  13s.  gd.  Wolhuters  were 
scarcely  affected  by  the  reduction  in  dividend,  the  price  being 
5s.  Among  Rhodesiijin  descriptions  Tanganyikas  have  recovered 
sharply  to  3  3-32,  Zambesias  have  risen  2s.  3d.  to  22s.  gd., 
Falcons  is.  3d.  to  215.  gd.,  and  Chartereds  gd.  to  14s.  4id.  In 
the  diamond  section  lie  Beers  have  risen  i  to  i2f^.  West 
Africans  have  been  in  some  request.  Gold  Coast  Amal- 
ganiateds  rose  1-32  to  par  on  the  maintenance  of  the  dividend 
and  bonus,  and  Ashanti  Goldfields  are  better  at  20s. 

Copper  and  Miscellaneois. 
Copper  shares  have  been  distinctly  firmer.  Rio  Tintos  have 
spurted  ij  to  65 J  on  a  report  that  the  shares  will  be  introduced 
•on  the  Spanish  bourses,  and  Hampden  Cloncurrys  have  risen 
IS.  gd.  to  26s.  gd.  in  anticipation  of  a  resumption  of  dividends. 
Tin  shares  have  been  active  and  buoyant  on  the  further  rise  of 
£t()  to  £343  in  the  price  of  the  metal.  East  Pools  have  risen 
2s.  6d.  to  30s.  6d.,  Geevors  is.  6d.  to  26s.,  Tronohs  5-32  to  ij, 
Anglos  gd.  to  14s.  6d.,  and  Keffis  is.  to  5s.  Ropps  have  ad- 
vaticed  4s.  to  24s.  6d.  on  the  record  March  output  of  104J  tons, 
while  Aramayos  have  risen  J  to  2i  on  the  large  increase  in 
proffts  last  year.  Broken  Hills  have  developed  marked  strength 
on  the  new  zinc  contract  made  between  the  Imperial  and  Aus- 
tralian Governments.  Proprietarj's  have  jumped  3s.  6d.  to 
66s.,  British  3s.  gd.  to  42s.,  Norths  3-32  to  3  1-32,  and  Souths 
i  to  loi-  Burma  Corporations  have  risen  -^  to  4^  in  sym- 
pathy, but  Mysores  have  fallen  3-32  to  2^.  and  Nundydroogs 
are  easier  at  22s.  6d. 


MINING  NEWS. 


GELDENHtJis  Deep.— Owing  mainly  to  a  drop  in  grade  this 
<ompany  did  not  do  anything  like  so  well  in  igi7  as  in  1916. 
The  tonnage  milled  was  47, goo  less  at  648,400,  -und  the  yield 
per  ton  declined  from  25s.  5d.  to  23s.  lod.  Working  costs 
averaged  3d.  higher  at  203.  lod.,  and  the  rate  of  profit  conse- 
quently dropped  from  4s.  lod.  to  3s.  per  ton.  The  nett  profit 
comes  out  at  /ioi,ig7,  as  compared  with  ^^172,911,  a  reduc- 
tion of  5  per  cent,  to  20  per  cent,  is  shown  in  the  dividends 
declared,  and  the  carry  forward  is  ;^2,345  less  at  ;fi8o,5ig. 
Reserves  of  ore 'have  been  increased  from  1,616,000  tons  to 
1,811,000  tons,  but  the  value  is  slightly  lower  at  5.8  dwts.  per 
ton.  To  avoid  the  payment  of  licences  231  claims  north  of  the 
reef  have  been  abandoned,  and  a  mynpacht  of  1.2  claims  has 
been   secured. 

Ivanhoe. — During  igi7  the  output  was  increased  from 
^3831723.  to  i!^39'i428.  Working  costs  averaged  22s.  gd.  per 
ton,  against  21s.  lod.  Owing  to  the  increase  in  costs  the  profit 
has  decreased  from  ^iig,27g  to  /■io6,og2,  but  the  dividend  is 
maintained  at  los.  6d.  per  share  by  a  final  payment  of  3s.  per 
share,  less  tax,  while  the  carry  forward  is  reduced  from 
;?•  5)579  to  /7.858.  Capital  expenditure  written  off  profits 
amounted  to  ^^23,550.  Despite  the  smaller  amount  of  develop- 
ment work  done,  the  ore  reserves  have  been  increased  from 
1,002,000  tons  to  1,035,874  tons,  valued  at  34s.  2d.  per  ton,  a 
decrease  of  2s.  id.  per  ton.  It  may  be  noted  that  the  writing 
off  of  ;^i3,6oo  for  investment  depreciation  more  than  accounts 
for  the  reduction  in  the  carry  forward. 

Gold  Coast  Amalgamated.— The  nett  profits  for  the  year 
ended  M.irch  31  were  ^^20,326,  against  ;fig,g6i,  but  ;f55,io8, 
or  ;f  14.238  less,  was  brought  into  the  accounts.  The  reserve 
has  been  increased  by  ;f  11,787,  as  against  ;f  14,088,  due  to  re- 
payment of  advances  to  sub-companies  previously  written  off 
this  account.  A  dividend  of  is.  per  share,  with  a  bonus  of 
^d.  per  share,  is  again  to  be  paid,  which  involves  a  further  re- 
duction in  the  carry  forward  to  ^■42,384.  It  is  stated  that  the 
issued  capital  is  represented  by  investments,  loans  and  other 
assets,  valued     at    ;^6i8,o22,    after     allowing    for    all    current 


liabilities   and   without  placing  any   value  on  mines,   property, 
concessions,  plant,  buildings,  and  stores. 

Dolcoath  Mine.— The  report  for  the  half-year  ended  Decem- 
ber 31  shows  an  appreciable  improvement  on  the  results  for  the 
previous  half-year.  Although  the  tonnage  treated  declined  fur- 
ther,  from  35,174  to  34,540,  with  a  diminution  in  the  yield  ot 
black  tin  of  33  tons  at  500  tons,  the  value  of  the  output  wa.-. 
/4,gi8  larger  at  £6t,Soj.  This  was  due  to  the  average  price 
realised  for  black  tin  rising  from  £'^5  '5*-  **>  ;fi45  os.  3d.  per 
ton,  making  the  average  per  ton  of  ore  £1  19s.  3.i5d.. 
against  £1  15s.  g.iid.  The  total  receipts  were  ;^'7i,8o4,  against 
;^64,389,  the  largest  since  the  .second  half  of  1913.  Working  costs, 
however,  rose  from  ^55,829  to  jfhi.iig,  and  the  nett  profit 
comes  out  at  .^6,055,  against  .^4.3^7  in  the  first  half  of  1917, 
and  compares  with  a  loss  of  ;f 2,910  in  the  second  half  of  1916. 
The  receipts  per  ton  were  £2  is.  6}id.,  against  £1  i6s.  y%d.; 
the  costs  £1  183.  ojd..  against  £1  14s.  i^d. ;  and  the  profit 
3s.  6d.,  ag'ainst  2s.  sjd.  per  ton.  After  writing  off  £2,S2<>. 
^9,54g,  against  ^6,019,  is  carried  forward.  Since  the  close 
of  the  half-year  the  company  has  purchased  the  lords'  royalties 
over  the  Dolcoath  Mine,  and  have  in  conjunction  with  the 
East  Pool  and  Agar  acquired  certain  outside  areas,  for  which 
purpose  debenture  stock  for  .^75,000  was  created  and  over- 
subscribed. 

Baxtjes. — Operations  in  1917  re.sulted  in  a  loss  of  ;£23,248, 
as  compared  with  ;i'7,697  in  1916,  and  the  credit  babnce  carried 
forward  is  reduced  from  ;^6i,3g5  to  ;f4g,324.  The  tonnage 
milled  was  243,500;  the  value  of  the  yield  22s.  3d.,  and  tht 
working  loss  2s.  per  ton  against  8d.  Although  development 
operations  were  disappointing,  the  ore  reserves  have  been  in 
cre-ised  from  4i2,o<X)  tons  to  470,100  tons,  while  the  value  is 
%  dwt.  higher  at  6  dwts.  The  directors  state  that  as  present 
conditions  are  against  moderate  working  costs,  there  is  little 
hope  of  the  mine  earning  more  than  a  nominal  profit. 

Robinson.- This  mine,  which  is  now  nearing  the  exhaustion 
stage,  suffered  a  heavy  drop  in  profits  last  year.  There  were 
milled  618,700  tons,  against  6go,300  tons,  the  yield  being  is.  gd. 
less  at  22s.  <)d.  and  the  profit  7s.  8d.  per  ton,  against  los.  8d. 
The  nett  profit  was  ;fi8i,o^6.  against  /'35'-.^^-  'he  dividend 
was  reduced  by  i  to  yi  per  cent.,  but  the  carrv  forward  is 
£281,01)8,  against  ;f  187,014.  Owing  to  the  receipt  of  bewaar- 
plaatsen  moneys,  the  capital  expenditure  account  shows  a 
credit  of  i''52'077-  "^^^  °'^  reserves  are  estimated  at  g43.oo-J 
tons,  but  given  an  ample  supply  of  labour  to  mine  the  maxi- 
mum quantity  of  low-grade  ore  from  the  main  reef,  the  maxi- 
mum tonnage  of  the  past  can  be  maintained  for  quite  two 
vears. 

MtiREX. — The  profits  of  this  concern  in  1917  were  ^17,470. 
It  is  proposed  to  pay  a  maiden  dividend  of  20  per  cent.  (is. 
per  share),  less  tax,  and  to  carry  forward  ;f7,446,  against  ^^75. 

Chinese  Engineering.- This  company's  profits  in  the  year 
ended  June  30  were  materially  increased  by  the  improvement 
in  the  rates  of  exchange  due  to  the  high  price  of  silver.  The 
gross  profit  of  the  Kailan  Mining  Administration,  under  which 
the  mines  of  the  company  and  those  of  the  Lanchow  company 
are  worked,  amounted  to  $5,776,338,  against  $5,201,0^4.  After 
providing  $866,450  for  depreciation  reserve  and  for  the  service 
of  the  bonds,  the  nett  profit  is  $3,791,986,  again,st  $3,i77'53?' 
the  company's  proportion  being  $2,146,973.  The  nett  profit  in 
sterling  comes  out  at  ^291, 562,  against  ^^201, 725.  It  is  pro- 
posed to  pay  a  balance  dividend  of  7^  per  cent.,  tax  free, 
making  i2'/i  per  cent,  for  the  year,  an  increase  of  2}i  per  cent., 
and  to  carry  forward  ;^286,654,  against  ^162,123  brought  in. 
but  the  former  amount  is  subject  to  excess  profits  duty.  Busi- 
ness of  the  Kailan  Administration  shows  a  slight  increase,  tho 
sales  of  coal  amounting   to   2,766,873   tons. 


American  Business  Notes. 


It  was  indeed  an  ungracious  thing  for  Sir  Sidney  Low  to 
write  a  letter  to  the  Ttjnes  depreciative  of  the  United  States 
help  in  this  war.  One  wondered  in  reading  that  letter— the  first 
feeling  excited  was  one  of  pained  astonishment— what  had  this 
mere  litterateur  to  do  with  public  affairs  in  the  United  States, 
but  the  question  was  answered  by  the  recollection  that  his 
brother,  Maurice  Low,  has  for  many  years  been  the  American 
correspondent  of  the  Morning  Post,  and  that  the  said  Maurir. 
although  a  perfectly  honourable  and  straightforward  journali?; 
has  his  failings,  not  to  say  his  racial  prejudices,  and  that  hi- 
has  often  been  the  reverse  of  sympathetic  in  his  attitude  to 
many  of  the  politicians  and  political  ideals  that  have  influence 
in  the  great  Republic.  So  far  as  we  have  observed— it  has  been 
by  no  means  closely— one  of  Mr.  Maurice  Low's  pet  iites  noirs 
is  President  Woodrow  Wilson.  This,  perhaps,  accounts  for 
Sir  Sidney's  depreciative  estimate  of  America's  help  in  the 
war.  America  has  done  next  to  nothing  as  yet,  according  to 
him.  "  Only  one  fighting  aeroplane  has  thus  far  been  sent 
from  the  Ignited  States  to  France,"  and— the  rest  may  be  in 
feired.      It  is  meanness  unredeemed. 

To  it  all  a  most  effective  answer — had  answer  been  needed — 
has  been  furnished  by  Mr.  Edward  Price  Bell,  the  London 
representative  of  the  Chicago  Daily  IVews.  This  able  corre 
spondent  points  out  that  it  would  not  be  in  the  interests  of 
America's  Allies  to  proclaim  to  the  world  what  the  country 
has  done  or  is  doing,  and  the  rebuke,  we  may  be  sure,  wa.-; 
hardly  needed  by  the  British  public.  For  no  man  of  Angli;- 
Saxon  race  would  in  a  supreme  time  of  crisis  like  the  present 
have  dreamt  of  casting   doubts  upon  the  energy,  capacity,  or 


April  27,   1918. 


TLbc  Jnveetovs'  IReview. 


417 


lo3'al  goodwill  of  the  American  people.  So  far  from  hanging 
back,  that  people  is  straining  every  effort,  commandeering 
every  resource,  and,  without  ceasing,  doing  its  utmost  to  take 
its  fair  and,  it  nxay  be,  its  decisive  share  in  this  war.  Only 
the  other  day  a  French  minister — we  forget  at  the  moment 
•/ho — told  us  that  there  were  already  500,000  American  soldiers 
in  France,  and  we  in  this  country,  although  nothing  is  Trum- 
peted forth  about  it,  are  well  aware  that  the  support  given  to 
us  by  the  American  Air  War  organisation  is  already  im- 
portant, is  every  week  on  the  increase.  So  is  it  in  France,  as 
Mr.  Bell  points  out.  Does  Sir  Sidney  Low  imagine  that  it 
is  a  light  thing  to  have  brought  half  a  million  fighting  men, 
with  their  guns,  ammunition,  doctors,  nurses,  food,  and  pro- 
vender across  the  Atlantic  in  less  than  a  year,  as  easy,  say,  as 
[the  action  of  armies  on  the  stage  in  a  play  of  Shakespeare? 


PUBLIC     INCOME     AND    EXPENDITURE. 


The  following  are   the  receipts   into   and   issues  out     of    the 
Exchequer  between  April  1,  1918,  and  April  20,  1918: — 


Estimate 

for  the 

Year 

1918-1919. 


Total  Receipts 

into  the 
Exchequerfrom 
April  I,  igt8,  to 

April  ao,  1918. 


Balances    in    Exchequer    on 

April  I— Bank  of  England  . . 

Bank  of  Ireland    . . 


Revenue. 

Customs  

Excise  

Estate,  &o.,  Duties 

Stamps 

Land  Tax \ 

House  Djtty    i 

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Duties,  &c 

Land  Value  Duties 

Post  Office  

Receipts    from.    Sundry 

Loans,  &c 

Miscellaneous 


Revenue 
Total 


Other  Receipts. 

Repayment  of  Advances  for  Bullion 

For  Treasury  Bills  (for  supply)    

For  5  per  Cent.  Exchequer  Bonds,  1922   

For  3  per  Cent.  Exchequer  Bonds,  1930    .... 

For  Wat  Savings  Certificates 

For  other  Debt  (War  Loan  Acts,  1914-1917)  ., 
For  4  per  Cent.  War  Loan,  1929-1942,  and  5  per 

Cent.  War  Loan,  1929-1947    

For  National  War  Boncfs    

Temporary  Advances — Waysand  Means.... 


Total . 


£ 

19.361,578 
1,668,452 


2 1 ,030,030 


4,002,000 

2,445.000 

1,416,000 

361,000 

160,000 


15,182,000 

12,264,000 

25,000 

1,850,000 

856,231 


38,561,231 


59.591.261 


240,000 
247,164,000 

4,100 

6,100,000 
24,236,020 


*44, 176,000 
65,500,000 


447,011,381 


Total  Receipts 

into  the 
Exchequer  from 
April  I,  1917,  to 

April  21,  1917. 


£ 

25.209,947 

1,225,912 


26,435.859 


3,761,000 

2,780,000 

1,679,000 

239,000 

170,000 

12,765,000 

10,286,000 

60,000 

1,850,000 

500 
406,906 


33.997.406 


60,433.265 

80,000 

109,432,000 

9,300,000 

3,600,000 

36,5oo,o"o 
61,055,000 


279,400,265 


^Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account. 


Expenditure 
and  other  issues. 


Estimate  fot 
the  Year 
1918-19. 


j   Total  Issues 
jout  of   the  Ex- 
ichequerto  meet 
payments   from 
JApril  I,  1918,  to 


Total  Issues 
out  of   the   Ex- 
chequer to  meei 
payments   from 
April  I,  19171  to 


April  20,  :9i8.   )   April  21,  1917. 


Expenditure, 
Permanent  Charge  of  Debt  . . 
Interest ,  &c. ,  on  War  Debt . . 
Payments  to  Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    


Expenditure 


Other  Issues. 

For  Advances  for  Bullion  

F«r   Advances   for    Interest    on    Exchequer 

Bonds     under    the     Capital     Expenditure 

(Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

For  Treasury  Bills  for  Supply 

For  War  Loans,  Exchequer  Bonds,  &c., under 

Section  34  of  Finance  Act,  1917  

For  War  Expenditure  Certificates  under  War 

Loan  Act,  igi6    

For  other  Debt  under  the  War  Loan  Acts, 

1914  to  1917 

For  Depreciation  Fund  under    the    Finance 

Act,  1917  

Old    Sinking    Fund,     1910-11,    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  (b)  .. 
Temporary  Advances  repaid— Ways  and  Means 


j      1918.     I      1917. 
I  April20.     April  21. 
Balances  in  Exchequer—  \        £       \       £ 

Bank  of  England '■  14,629,0931  23,163,809 

Bank  of  Ireland 1    1,706,031!    1,241,369 


Total, 


£ 
2,706,446 

14,726,069 

go.ooo 

197,882 
134,424.000 


84,909 

12,000 
1271,677,000 

1.877.344 

+9,400 

3.451.207 

1,000,000 

20,000 


430,676,257 


16,335,124 


447,011,381 


£ 
2,887,909 
4,774,840 

190,000 

230,139 
127,619,000 


200,000 

84,909 
20,000 

78,975.000 

13,290 


40,000,000 


254.995.087 


24,405,178 


279,400,265 


MEMO.^Treasury  Bills  outstanding  on  April  20, 1918 ♦/;"948, 272,000. 

♦  Includes  ;C203,ooo,  the  proceeds  of  vrhich  were  not  carried  to  the  Exchequer 
within  the  period  of  the  account,  besides  a  part  (not  yet  ascertained  and 
brought  to  account)  of  the  Bills  tendered  as  subscriptions  to  National  War  Bonds. 

t  Includes  part  payment  of  Bills  and  Certificates  tendered  as  subscriptions 
to  National  War  Bonds. 


ANNOUNCED. 

7;'3   per  cent,  or  _^"i   xos.   per  share> 


DIVIDENDS 

Assam   Co. — Interim   of 
less  tax,  payable  June 

Agricultural  Uank  of  Kgypt. — 8s.  per  share  on  ordinary 
shares,  against  7s.,  and  ^40  per  share  on  deferred  shares,  the 
same. 

Anglo-Chilian  Nitrate  and  Railway  Co. — Further  J5S.  per 
preference  share,  and  15s.  per  ordinary  share,  for  1917,  both  free 
of  tax,  payable  on  May  16.     For  1916  a  boeus  of  5s.  was  paid. 

Broken  Hill  Proprietary  Co. — (No.  181J  is.  per  share,  payable 
May  15,  the  same  as  a  year  ago. 

Bankers'  Investment  Trust. — For  half-year  ending  April  30 
at  rate  of  6  per  cent,  per  annum  on  deferred  stock ;  the  same  as 
a  year  ago. 

Bank  ot  Montreal. — 2}^  per  cent,  for  quarter  ending  April  30, 
together  with  a  bonus  of  i  per  cent.,  which  is  at  rate  of  12  per 
cent,   per  annum,  same  as  a  year  ago. 

Canadian  Bank  of  Commerce. — 2^  per  cent,  and  bonus  of  i  per 
cent,  for  three  months  to  May  31,  payable  June  i,  the  same  as 
a  year  ago. 

Consolidated  Trust.— Final  8^  per  cent,  on  deferred  stock, 
making   123^  per  cent,  for  year,  the   same  as  last  year. 

Consolidated  Water  \Yorks  Co.  of  Rosario. — Final  on  ordi- 
nary shares  of  5  per  cent.,  less  tax,  making  8  per  cent,  for  1917, 
the  same  as  for  1916. 

City  of  Buenos  Ayres  Tramways  Co.  {1904). — is.  3d.  per 
share  (being  at  rate  of  5  per  cent,  per  annum),  less  tax,  for  three 
months  to  March  31,  payable  May  16,  the  same  as  a  year  ago. 

Dunville  and  Co. — Interim  of  5s.  per  share,  less  tax,  for  half- 
year  ended  March  31. 

Dalgety  and  Co.~Interim  for  six  monftis  ended  December  31 
of  4s.  per  share,  together  with  bonus  of  is.  per  share,  payable 
on   15th   prox.  . 

FngUsh,  Scottish,  and  Australian  Bank.— Interim  of  4  per 
cent.,  free  of  tax.  payable  May  i,  the  same  as  a  year  ago., 

Financial  Times.— On  ordinary  shares  for  year  ended  Decem- 
ber 31,  at  the  rate  of  4  per  cent,  per  annum,  against  5  per  cent. 

Grand  Hotel,  Eastbourne.— Interim  at  rate  of  10  per  cent,  per 
annum,  less  tax,  for  six  months  ended  March  31,  to  be  paid 
May  15,  the  same  as  a  year  ago. 

Joshua  Hoyle  and  Sons.— Interim  at  rate  of  20  per  cent,  per 
annum,   free  of   tax,   for  six   months  ended    March   31,   payable 

May  14.  ^        ,..      .  t- 

London  Guarantee  and  Accident  Co.— tinal  on  ordinary 
shares  of  12s.  6d.  per  share,  making  with  interim  a  total  of  20s. 
per  share,  against  i6s.  paid  in  1916.  ■ 

Liverpool  and  London  and  Globe  Insurance.— 13s.  per  share 
for  1917,  making  26s.  for  year,  less  tax,  as  against  24s.  for 
previous  year. 

Mansfield  Railway  Co.— Final  at  rate  of  6  per  cent,  per 
annum  on  preference  shares  for  half-year;  ;^840  forward.  Ihis, 
with  interim  for  the  June  half-year,  makes  4^  per  cent,  for 
whole   year    on   the   preference    shares,   against   4-V^    per   cent. 

D.  and  W.  Murray.— fnterim  of  5  per  cent,  for  half-year 
ended  January  19,  the  same. 

Montevideo  Telephone  Co.— Interim  for  half-year  to  Jan.  31 
at  rate  of  6  per  cent,  per  annum,  free  of  tax,  the  same  as  a 

year  ago.  ■,    ^  ■, 

Niger  Co.— Interim  of  3I  per  cent,  for  half-year  ended  June  3a 
on  ordinary  shares,  less  tax,  the  same  as  a  year  ago. 

Premier  (Transvaal)  Diamond  Mining  Co.— On  the  deferred 
shares  of  200  per  cent.  (5s.)  per  share,  less  tax,  comparing  with 
6s.  ^d.  pvaid  in  December  last.  ^.      ,  .         ^  , 

Rio  de  Janeiro  City  Improvements  Co.— Final  2s.  6d.  per 
share  (less  tax),  making  5  per  cent,  for  1917. 

Scottish  Union  and  National  Insurance  Co.— For  1917  at  rate 
of  20  per  cent.,  less  tax. 

Trust  and  Agency  Co.  of  Australasia.— is.  per  share,  making 
a  total  for  1917  of  is.  6d.  per  share,  or  yi  per  cent,  (free  of  tax), 

the  same  as  for  1916.  r--     .   r  -  ^f 

West   India  and  Panama  Telegraph   Co.— Final  for    1917  of 

6d.  per  share  and  3d.  per  Share  bonus  on  the  ordinary  shares 

(free  of  tax).  ,      ,      ,  ^     ,  j     „^, 

Wolhuter    Gold    Mines.— (No.    21)   of    3}   per   cent.    {pd.   per 

share)  for  six  months  ending  April  30,  as  compared  with  is.  3d. 

a  share  a  year  ago.  -       .  ,  -jv   „„j 

Yorkshire  Insurance  Co.— 5s.    per  ^5   share  (los.  paid)  and 

10s.  per  £1  fully-paid  share,  tax  free,  same  as  last  year. 

Sutherland  Stkamship  Co.,  Ltd.— Profits  fell  off  heavily  in 
the  year  to  March  31,  the  trading  account  showing  a  balance  of 
only  /■;8,4oo,  against  ^198.400-  Dividends  from  investments 
yielded  /2 1, 000  more  at  ;f30-750.  but  the  amount  brought  in 
was  ^136,000  smaUer  at  ;^i8,2oo.  On  the  other  hand,  ^^i  16,000 
was  saved  on  excess  duty,  and -the  nett  profit  is  ;ti50.ooo  ^°^'^^ 
at  /70  300.  Nevertheless,  the  directors  pay  6s.  per  share,  tax 
free,  or  the  same  as  last  year,  and  the  carry  forward  is  reduced 
to  ;^io,3oo.  It  does  not  look  very  cheerful  at  first  sight,  but  we 
do  not  think  that  things  are  as  bad  as  they  seem.  Last  year, 
after  striking  nett  profit,  j^  140,000  was  placed  to  maintenance 
and  reserve  fund.  NotTiing  is  said  about  any  such  appropria- 
tion on  this  occasion,  but  comparing  the  balance-sheets  for  the 
two  years,  we  find  that  this  fund  now  stands  at  ;^563,ooo,  an 
increase  of  no  less  than  ^434,000.  Moreover,  property  and 
investments  are  up  ;^i75,ooo  at  ^^788,000,  and  debtors  have 
increased  from  ;f  5,300  to  ;£i  12,000,  but  cash  balances  are  £73,000 
lower  at  ;^47,ooo.  Without  getting  behind  the  scenes,  it  is  im- 
possible to  draw  any  definite  conclusions  from  the  figures  pre- 
sented. 


4i8 


XTbe  Jnveetora'  IRevtew. 


Aph£l  27,  1918. 


Insurance    News. 


I'or  1917  the  profits  of  the  Royal  Kxchange  Assurance  Cor- 
poration amounted  to  ;/;3oi,88j,  as  contrasted  with  £286,008  in 
1916.  The  amount  provided  for  depreciation  of  investments  and 
lossesi  owing  to  the  war  was  /i4o,ooo,  a-s  against  ^60,000  in  the 
previous  year.  Available  balance  £726,434,  an  increase  of 
ji'03.iS4j  oul  of  which  a  dividend  making  12  per  cent,  for  the 
year  is  to  bo  paid,  the  same  as  for  191O.  There  was  issued 
1,398  new  life  policies  for  ^714,832,  and  the  total  nett  premium 
income  was  ^^7,7^0  higher  at  £397,7"'i-  The  amount  paid  for 
•claims,  excluding  endowments,  was  £261,-; 27  (against  ;^225,824)  ; 
this  sum  was  only  slightly  in  excess  of  the  expectation,  not- 
wiithsLanding  the  amount  paid  for  war  claims.  Nett  fire  pre- 
miums were  ;£i  12,694  higher  at  /i,  117,887,  but  losses  and  ex- 
penses also  increased,  and  the  profit  of  /■8o,35o  showed  a  re 
duction  of  ^22,448.  An  increase  of  i£'467,487  in  the  nett  marine 
premiums  was  accompanied  biy  an  increasso  of  ;£573,687  in  the 
amount  paid  for  losses  in  respect  of  1917  and  previous  years. 
.\fter  increasing  the  marine  fund  from  /i, 010,110  to  /'i, 216,445, 
/ 1 70,000,  or  ^40,000  more,  was  transferred  to  profit  and  loss. 

Th<'  Northern  Assurance  Company  did  not  have  such  a  favour- 
able experience  as  regards  firr  business  in  1917.  While  net» 
piomiums  rose  by  ;f252,394  to  ^-1,687,914,  claims  were  £203,^83 
higher  at  ^925,292,  the  loss  ratio  being  62.3  per  cent.,  against 
50.3  per  cent,  for  1916.  Expenses  were  kept  down,  however, 
.and  the  ratio  was  35.1  [xr  cent.,  against  37.4  per  cent.  The 
company  has  extended  its  operations  to  marine  busine.ss  under 
the  guidance  of  the  Indemnity  Mutual  Marine  Company,  and 
the  m<tt  premiums  were  ;f  112,864  for  the  year;  losses  being 
j6'2,533  and  expenses  ^5,550,  leaving  a  surplus  of  ;^94,78i.  New 
life  business  at  ;i3i3,303  nett,  showed  an  increase  of  /io,784, 
while  claims  were  lighter  by  ^£'22,435  ~at  ;,f292,394.  By  an 
addition  of  ^66,oo8,  the  life  funds  were  raised  to  ^5, 007, 695. 
The  distribution  for  the  year  is  again  made  up  to  9s.  a  share. 
In  all  departments  the  business  of  the  Atlas  Assurance  Co. 
for  1917  showed  substantial  progress.  New  life  policies  for 
nett  sums  of  ^645,594  were  is-sued,  thi.s  total  showing 
an  increase  of  ^^189,692,  ,Hvith  annual  premiums  of 
jC27>3>^,  or  ;^7,564  more  than  in  iqi6.  Claims  by  death,  which 
numbered  314  for  ^145,861,  including  bonus  additions,  were 
-o"'y  -^4.010  heavier,  and  of  the  death  claims,  .S4  were  on  lives 
over  70,  and  30  of  these  were  on  lives  over  80  years  of  age.  The 
premium  income  at  ;f  225,785  showed  an  increase  of  ^7,376,  and 
the  total  revenue  at  £333,-77  an  increase  of  ^19.258.  After 
carrying  ;f  27,399  to  life  investment  reserve  fund  to  cover  the  de- 
preciation in  Stock  Kxchange  securities  during  the  year,  the  life 
funds  increased  by  ^107,182  to  ;;?2. 474,867.  Nett  fire  premiums 
at  £',39^,(>9^  were  ^239, 837  higher,  but  claims  came  to  ^^119,681 
more  at  ;f652,428.  An  underwriting  profit  of  ^163,463  was 
made.  Premiums  in  the  accident  and  general  account  were 
nearly  double  the  1916  total,  namely,  ;^ii2,i77,  against  ;£'59,7i9, 
but  claims  and  other  outgo  came  to  ^50,201  more  at  ^■93,530, 
the  profit  being  ;^  16,354,  after  increasing  reserve  for  unexpired 
risks.  With  interest,  the  available  total  in  profit  and  loss 
account  was  ;f  14,843  more  at  ;^26i,287.  The  dividend  for  the 
year  is  maintained  at  8s.  per  share,  of  which  3s.  per  share  was 
)>aid  in  October,  less  tax.  The  remaining  5s.  will  be  paid  on 
April  30,  tax  free,  so  that  the  shareholders  are  really  receiving 
an  increased  distribution,  and  the  balance  forward  is  raised 
^r  ;£.»4.790  to  j^69,7oi. 

With  an  increase  of  £46,924  to  ^£547, 150  in  the  nett  fiie 
r'remium  ancome  for  1917,  the  Caledonian  insurance  Company 
reported  an  increase  of  ^^27,226  to  £21)3,372  in  the  claims,  the 
loss  ratio  being  53.62  per  cent.,  as  compared  with  53.21  per 
cent,  in  1916.  Expenses  and  comnnission  were  ;f 8,965  higher  at 
£11)^,428,  the  ratio,  however,  being  35.72  per  cent,  as  con- 
trasted with  37.27  per  cent.  The  surplus  of  ^55,473  .showed 
an  increase  of  ;i'6,7oo,  and,  with  other  items  carried  to  profit 
and  loss  after  writing  off  investments,  &c.,  there  rem.iined,  in- 
<;luding  ;£iio,337,  or  ^20,513  more,  brought  in,  a  credit  balance 
■<*'  Ai43'496.  an  increase  of  £13,138.  After  repeating  the  divi- 
dend of  24s.  per  share,  the  balance  forward  was  raised  to 
/i24,i46.  In  the  life  depia.rtnient  967  new  policies  for  ^^815, 755 
were  issued,  an  increase  of  153  in  the  number  and  of  ;^i3,54i 
in  the  amount ;  the  nett  amount  retained  was  ;£25,2o8  le.ss  than 
in  1916  at  ;f7o6,6o5.  A  surplus  of  .£70,354  was  disclosed  in  the 
valuation,  plus  £1^,443  distributed  in  interim  bonuses,  making 
A»5'797.  whereof  £8,s,8o  belongs  to  the  shareholders.  This 
surplus  compared  with  ^^245,958  realised  at  the  end  of  the 
previous  five  years.  Apart  from  the  depreciation  in  the  value 
of  the  securities  caused  by  the  war,  the  surplus  now  disclosed 
Was  the  largest  in  the  history  of  the  company.  A  general 
distribution  of  ibonus  is  not  recommended,  but  int<>rim  bonuses 
will  be  paid  to  participating  policies  in  force  on  December  31 
last,  on  which  at  least  three  years'  premiums  had  been  paid, 
which  become  claims  during  the  current  quinquennium,  at  the 
rate  of  15s.  per  cent,  in  the  ca.se  of  whole  life  and  los.  in  the 
rase  of  endowments. 

A  trading  profit  of  ;£5o,368  is  disclosed  in  the  fifth  annual 
valuation  of  the  Edinburgh  Life  Assurance  Co.,  which  com- 
pares with  ;i6o,344  shown  a  year  ago.  and  as  these  figures  do 
not  permit,  m  the  directors'  opinion,  of  the  distribution  of 
any  surplus  among  the  policyholders,  the  whole  amount,  as 
was  the  case  a  year  ago,  is  to  be  placed  to  reserve.  As  in  each 
of  the  previous  two  years,  the  fact  that  no  surplus  was  dis- 
tributed, the  dividend  on  the  shares  has  to  be  paid  out  of  the 
interest  earned  on  the  proprietors'  funds;  the  distribution  is 
again  at  the  rate  of  4  per  cent.,  comparing  with  8  per  cent 
for  the  years  1913  and  1914.  The  company's  new  business  was 
maintained  at  nearly  the  previous  year's  level,  820  new  policies 


being  issued,  against  801,  assuring  ;{^40i,64o,  as  compared  with 
;^4i9,87i.  Claims  were  ;^22,ao2  higher  at  £33^,230.  At 
£4  6s.  ud.  per  cent.,  the  nett  average  rate  of  interest  earned 
on  the  funds  showed  a  reduction  of  3s.  7d.  per  cent. 

The  General  Accident,  Eire  and  Life  Assurance  Corporation, 
in  common  with  other  Uritish  offices,  suffered  a  heavy  loss  ic 
the  conflagration  in  Salonica.  This  nett  loss  is  estimaited  at 
£72,000,  but  most  of  this  has  been  met  out  of  the  proAtS'  of  the 
year,  with  the  iiasisLance  of  /lo.ooo  from  the  special  reserve  of 
£40,000,  which  was  carried  in  the  fire  account  for  the  purpose 
of  meeting  such  a  contingency.  Nett  fire  premiums  showed  an 
increase  of  £40,776  at  £234,235,  and  claims  amounted  to  40.93 
per  cent.,  excluding  the  Salonica  loss,  as  compared  with  40.7^ 
per  cent.  Accident  nett  premiums  at  ;^  1,389,705  showed  an  in- 
crease of  £136,103,  of  which  claims  absorbed  59.36  per  cent.,  a-s 
cximipared  with  61.37  |xr  cent,  in  1916.  In  the  life  department 
the  nett  new  business  w.-ls  £97,059,  an  increase  of  £19,207. 
claims  by  death  were  £8,423  agaim-t  £10,854  in  the  previoii- 
year.  The  company  began  writing  marine  business  in  January, 
1917,  the  results  of  which  will  be  ascertained  at  the  end  of  the 
current  year.  The  nett  income  from  all  sources  was  £1,709,71: 
—an  increase  of  £189,300,  but  the  outgo  was  £165,068  more 
at  £1,623,942.  After  adding  £16,673  more  at  £6o>794  to  the 
various  reserves,  the  directors  repeat  the  dividend  of  5  per  cent, 
on  the  ordinary  shares,  which  requires  only  £12,500,  and  the 
balance  forward  is  raised  from  £1,305  to  £6,130. 

The  directors  of  the  London  Life  Association  are  asking  for 
power  to  enable  the  company  to  transact  sickness  and  accident 
business.  It  is  understood  there  is  no  immediate  intention  of 
transacting  this  class  of  busines,  but  there  is  a  possibility  of  it 
being  done  later  on  in  conjunction  with   life  assurance. 

Although  the  surplus  of  £90,207  disclosed  in  the  valuation  of 
the  Century  Insurance  Company  compares  with  £61,617  re- 
alised five  years  ago,  it  has  been  decided  not  to  make  any 
general  bonus  to  participating  policies.  In  the  case  of  policies 
which  may  become  claims  during  1918  the  bonus  is  to  be  25s. 
per  cent,  for  each  full  year's  premium  paid  since  191 2.  The 
directors  will  in  due  course  consider  if  a  further  valuation  can 
be  undertaken  before  the  close  of  the  new  quinquennium 
Shareholders  are  to  receive  a  dividend  for  the  year  of  3s.  3d.  per 
.share,  the  same  as  for  1916. 

The  nett  premium  income  of  the  Guarantee  Society  for  1917 
was  £9,386  higher  at  £49,752,  but,  after  providing  for  claims 
paid  and  outstanding  and  other  outgo,  the  balance  on  profit 
and  loss  account  was  reduced  from  £49,725  to  £48,366.  The 
dividend  of  17s.  6d.  a  share,  le.ss  tax,  is  the  same  as  a  year  ago. 

As  illustrating  the  heavy  contributions  on  behalf  of  the 
country  which  life  assurance  offices  are  being  called  on  to 
make,  it  is  of  interest  to  note  that  during  the  first  four  years 
of  the  present  quinquennial  period  the  Scottish  Provident  insti- 
tution has  paid,  over  and  above  the  ordinary  claims,  nearly 
£400,000  in  respect  of  deaths  due  directly  to  the  war,  the 
assurances  being  mostly  on  young  lives,  in  respect  of  which  no 
extra  premiums  were  charged.  Moreover,  the  amount  paid  as 
income-tax  for  the  same  period  exceeded  by  £325,000  the  amount 
paid  during  the  corresponding  period. 

Shareholders  in  the  Fine  Art  and  General  Insurance  Com- 
pany are  again  to  receive  a  dividend  of  35  per  cent.,  and  the 
balance  forward  is  raised  from  £35,527  to  £64,135.  Reserves 
have  been  increased  by  £30,666  to  £315,875,  in  addition  to  the 
res<Tve  for  investment  fluctuations  of  £93,133;  this  last  total 
is  in  excess  of  the  depreciation  as  ascertained  at  December  31 
la.st.  Invested  funds  at  £474,087  show  an  increase  of  £17,780- 
The  nett  premium  income  was  £5.145  higher  at  £191,851. 


Tea,  Oil  and   Rubber. 

Last  week  1,173  1°"^  of  rubber  were  landed  in  this  country, 
notwithstanding  the  restrictions  which  were  supposed  to  be 
enforced,  while  the  deliveries  were  only  420  tons,  and  stocks 
were  raised  to  15,900  tons,  against  10,740  tons  at  the  corre- 
sponding date  last  year.  Nevertheless,  the  market  for  the  com- 
modity made  a  gallant  effort  to  raise  prices,  and  actually  suc- 
ceeded in  putting  standard  crepe  up  to  2s.  6d.,  from  which 
there  has  only  been  a  fractional  decline.  Other  influences  on 
the  share  market  this  week  have  been  the  absence  of  any  in- 
crease in  the  excess  duty  under  the  new  Budget,  which  many 
people  anticipated,  and  the  hope  that  the  }-ounger  estates  will 
get  some  concession  when  their  case  again  comes  before  the 
Hoard  of  Referees.  On  the  other  hand,  the  annual  reports  now 
coming  to  hand  are  not  very  encouraging,  and  in  several  cases 
dividends  have  been  rather  drastically  cut,  but  holders  are 
apparently  satisfied  that  future  prospects  with  the  enforced 
restriction  of  output  are  sufficiently  favourable  to  hang  on. 
We  have  repeatedly  stated  our  opinion  on  the  subject,  and  time 
alone   will  show   which   view   is  the  more  correct. 

SEL.'kB.A  Rubber  Estates,  Ltd. — Year  to  December  31. 
Capital,  £125,000,  in  £1  shares.  Reserve,  £20,000.  Output 
660,400  lbs.  ;  decrease,  6,400  lbs.  ;  average  price,  as.  3.03d.. 
against  2s.  5.39d. ;  all-in  cost,  is.  5.34d.,  against  is.  2.75d.  Gross 
proceeds,  £68,140,  decrease.  £12,000;  nett  profit  £28,700,  de- 
crease £i4,joo;  brought  in  £12,500,  decrease  £4,000.  Divi- 
dend is  consequently  reduced  from  28  per  cent,  to  18  per  cent., 
and  the  carry  forward  is  £11,700,  subject  to  claim  for  return 
of  excess  duty.  The  cultivated  area  is  2,480  acres,  all  planted 
in  191 1  or  earlier,  so  that  the  whole  estate  ought  to  be  almost 


April  27,    1918. 


^be  Jnveetovs'  IReview. 


419 


in  full  bearing,  and  might  be  expected  to  yield  between 
750,000  and  1,000,000  lbs.  without  overstrain.  But  under  the 
restriction  arrangement  the  output  for  the  current  year  is  esti- 
mated at  only  528,000  lbs.,  and  unless  the  average  price  can 
be  raised  materially,  the  outlook  is  not  brilliant.  A  further 
advance  in  average  cost   is   almost   inevitable. 

Harpenden  (SEL.tNCOR)  KtiiiiER  Co.,  LTD. — Year  to  Decem- 
ber 31.  Capital,  ;f3o,ooo,  in  ^i  shares.  Reserve,  .^25,500. 
Output  was  511,300  lbs.,  an  increase  of  4,000,  but  56,700  lbs. 
below  the  estimate.  No  clear  statement  is  given  as  to  average 
price  obtained,  and  dt'tails'  of  cost  are  entirely  omitted,  (iross 
proceeds  amounted  to  ^^55,300,  decrease  ^'12,400,  and  nett  profit 
was  ;fi5,ooo  less  at  £28,4110.  Consequently  the  dividend  has 
to  be  reduced  from  125  per  cent,  to  90  per  cent.,  and  after 
placing  .1^1,500  to  income-tax  reserve,  the  balance  forward  is  a 
trifle  less  at  ;£i,46o.  Reduced  estimate  of  output  for  the  cur- 
rent year  is  510,000  lbs.  The  planted  area  is  1,650  acres,  of 
which  400  acres  were  planted  in  1913,  and  the  rest  between 
1904  and  1910,  so  that  a  considerably  larger  yie'ld  ouglit  to  be 
obtainable  wheni'vcr  it  is  desired.  In  the  meantime  it  is  in- 
■evitable  that  costs  must  be  heavy. 

Cheviot  Rubber,  Ltd. — Year  to  December  31.  Issued 
capital,  /88,4oo,  in  2s.  shares ;  reserve,  ;{'35,ooo.  Output 
610,450  lbs.,  an  increase  of  214,000  lbs.;  average  price 
33.  j.o/d.,  against  2s.  7.oud. ;  all-in  cost  is.  3-33d.,  against 
IS.  3.24d.  Crop  proceeds  ^68,870,  an  increase  of  /.'i7,4oo;  nett 
profit  .^27,950,  increase  ^1,800,  after  placing  ;f  5,000,  or  ;^4,ooo 
less,  to  reserve.  The  dividend  is  reduced  from  15  per  cent. 
to  10  per  cent,  for  the  year,  and  the  carry  forward,  subject 
to  excess  duty,  is  imreased  by  £ll^,m■>o  to  ^^'25,560.  Cultivated 
area  2,727  acres,  of  which  775  acres  have,  been  planted  since 
1912,  and  there  nre  785  acres  in  reserve.  Output  for  current 
year  was  estimated  at  700,00(5  lbs.,  but  is  fo  be  restricte<.l  to 
about  488,000  lbs.,  and  the  directors  state  that  an  increase  in 
the  costs  of  production  mu.st  be  anticipated.  "It  is  a  sad 
world,    my  masters,   and  will  bo  sadder  " 

DiMBULA  Vali.ev  (Cevi.ox)  Tea  Co.,  Ltd. — Year  to  December 
31.  Issued  capital,  .^189,200;  reserve,  jf  32,000.  Output 
1,458,950  lbs.  of  tea,  decrease  133,000  lbs.;  cost  6.5od.  against 
5.75d.  ;  average  price    is.  2.26d.  again.st    is.  o.  i6d.  ;    estimated 

'  -output  for  current  year  1,546,000  lbs.  Planted  area  remains  at 
2,573  acres.  Rubber  output  282,900  lbs.,  decrease  58,000  lbs.  ; 
cost  9.78d.  again.st  8. 58d.  ;  average  price  2S.  3.76d.  against 
2S.    7.6id.      Area  919  acres    planted    between     1904    and     1913. 

[Trading  profits  ^'40,100,  decrease  ^11,700;  nett  profit ;,f 36, 750. 
decrease  ;,<^i2,40o;  nil  to  reserve  against  .^2,000;  dividend 
reduced  from  30  per  cent,  to  25  per  cent.,  and  ;^5,5oo,  or  ^^6,200 
less,  carried  forward.  For  the  current  year  the  re.stricted  output 
of  rubber  is  estimated  at  273,000  lbs.,  but  it  is  stated  that  under 
normal  conditions   a    far   larger   crop    would    have    been    anti- 

I  •cipated. 


Wnat    Balance    Sheets    Tell. 

Canada   Co. — When   this  company   reorganised   its  capital   by 

'  multiplying  the  shares  ten-fold,  it  might  have  taken  the  oppor 

lunity  of  simplifying  the  form  of  its  accounts,  which  are  of  a 

rather  maz}'  description.     Revenue  receipts  were  jf  1,000  higher 

at  /■ii,87o,   expenses   of  management  were   smaller,    but   a  new 

item   of   taxes   in   Canada   absorbs   ^^2,530,    and   the   balance    is 

[_£i.i<x>   down    at   ^4,430.      Land    realisation    account    produced 

f^4'30"  Ifiss  at  /.'7,3io,  and  ;^'i,ooo  is  taken  from  the  reserve,  in 

[order  to  pay  a  dividend  of  2s.  per  share  (eqvial  to  20s.  on  the 

i  old   shares),  and   to  carry  forward  /(;oo,   or  a  trifle  more  than 

was  brought   in.     For   1916  the   dividend   was   30s.    per  share. 

Sales  and  leases  of  land  amounted  to  8,300  acres,  an   increase 

lot  1,140  acres,  and  the  average  price  was  I20.66,  a  gain  of  iij 

per  cent,  over  the  book   value. 

Thomas  Tn.r.iNt;.   Ltd.— The    report   for   1916  was  presented 

•  only  a  couple  of  months  ago,  and  now  the  accounts  for  last  year 

j  are  available.     Nett  profits  amounted  to  ^77,300,  an  increase  of 

[jt3S>ooo,  but  £y,o<x>  less  was  brought  in.     The  dividend  is  in- 

,  creased    from    10  per  cent,   fo    15   per   cent.,  less  tax,   and   this 

'entitles  the  income  debenture  stockholders  to  additional  interest 

at  the  rate  of  2^  per  cent.,   against   1%   per   cent,    last  time. 

After  placing  ^^3,880   to  special   reserve,  raising  it  to   ;^io,ooo, 

^  there  remains  2411/60,  or  ;,f  13,000  more,  to  be  carried  forward, 

[Subject  to  excess  duty.     The  cash  position  is  a  strong  one,  the 

amount  in  hand  being  ^^112, 600,  while  there  are  also  investments 

amounting  to  ^265, 500.     That  seems  more  than  such  a  company 

^  really  requires,  but  if  it  is  a  fault  it  leans  to  virtue's  side. 

International  Linotype,  Ltd.— For  the  year  to  March  31  nett 

Iprofits  amounted  to  ^39,910,  an  increase  of  ;^3,4oo,  and  it   is 

'therefore  possible  to  raise  the  dividend  from  6  per  cent,  to  6% 

I  per  cent.,  while  the  balance  forward  is  slightly  larger  at  ;^3,8oo'. 

IThe  company's  interests  are  practically  confined  to  the  holding 

■of  14,400  shares  in  the  Mergethaler  Linotype  Co.  of  New  York, 

and   this   concern   again    paid    12'-^    per   cent,    for    the   year   to 

September  30.     Its  nett  profits,    however,  were  115,000   less  at 

;  $1,883,000,  but  it  has  an  accumulated  surplus  of  $7,350,000,  so 

;  it  can  evidently  make  the  business   pay,  although  the  brilliant 

management  here  made  such  a  mess  of  things  in  the  old  days. 

\     Steei.    Bros,    and   Co.,   Ltd.— Last    year    this    great   Anglo- 

Ilndian   business  again   did    remarkably  well,  nett  profits   being 

f  A40.000  up  at  ^'405,000.     Con.sequently  the  dividend  of  40  per 

cent,  is  repeated,  ^35,000,  or  ^5,000  more,  is  set  aside  for  bonuses 

f  to  employees,  and  the  balance  carried  to  special  reserve  is  doubled 

at   /86,6oo,    raising  this  fund  to   ;^265,ooo.     During  the   year 

^166,000   was   spent   on   new   properties,   and   stocks   increased 

;t4So,ooo  to  /"i, 195, 000.     It  is  a  most  prosperous  and  progressive 

t  company. 


COMPANY   MEETINGS. 

JOSEPH  TRAVERS  AND  SONS. 

The  ordinary  general  meeting  of  the  shareholders  of  Joseph 
TravcTs  anxl  Sons,  Ltd.,  was  held,  on  Wednesday,  at  the 
Cannon  Street  Hotel,  E.C.,  Sir  lOdward  Bowron  (chairman 
of  the  coimpany)  presiding. 

The  Secretary  (Mr.  E.  K.  Wilkinson)  having  read  the  notice 
convening  the  meeting  and  the  report  of  the  auditors, 

The  Chairman  said  :  The  only  item  in  the  new  baliance-sheet 
that  requires  explanation  when  com^pared  with  last  year  is  tht- 
reduction   in   the   war   contingencies    and    .staff   reserve   account 
from  ;^'i 50,000  to  ;if 67,000.      This   alteriiition  does   not  represent 
any  real  reduction   in    our   reserves,    but  has  been   caused  by 
including   the    liability   for   taxation    in   the    item    of    ;f799>324 
7s.  7d.  above,  under  the  heading  of  '■  Debts,  deposits,  taxation," 
&c.,  to  which  it  more  properly  belongs.     The  increased  co.'vt  of 
material  h;is  been   taken  into  consideration  in  the  write-off  for 
depreciation  of  premises  and  plant,   and  the   amount  of  ^^6,872 
13s.  2d.  is,   we  believe,  sufficient  for  the  purpose.     The  bonus 
which  we  recommend  might  be  open  to  criticisan  but  for  the  fact 
that    it  is  the   result  of  a  policy   which   is  fully  jus.tified   from 
a  patriotic  point   of  view.      The   policy  to  which  I  refer  is  the 
old^fiishioned  plan   of   •'  quick   returns,"   and  a   large  increase 
in   the  turnover,  combined  with  a   general   advance   in    values, 
has  r^ulted  in  an  increiise  in  the  total  net  profit,  which  enables 
us  to   recommend    a    bonus  of   is.   per  share  on    the    ordinary 
shares.     If  further  justification  were  needed  we  might  .add  that', 
after  providing   for    the  excess  profits   tax,   there   remains   less 
than    2    per   cent,    on   the   turnover.      The    rapidly   diminishing 
.supplies,  combined  with  the   widening  of  the  Government  con- 
trol,   will  undoubtedly  limit  the  scope  of   our   activities   in  the 
future.     We  therefore  propose  a  bonus  rather  than  addition  to 
the  dividend,   which    m.ight  indicate   a  degree   of  hope  of   per- 
manency  which  the  large  increase  in  taxation   may  render  im- 
possible.     The   details    of  the   far-reaching   effect   of   Monday's 
Budget  cannot  at  the  moment  be  correctly  gauged,  but  on  one 
important  point  there   can  be  no   doubt,   namely,  the  extra   re- 
quirements  of  capital  to  do  the  same   amount  of  business.     In 
sugar    alone   the    amount    will    be    considerable;    in    fact,    the 
present    addition  of  duty   exceeds   the    total  value   of  some   de- 
scriptions in  pre-war  years.     The  doubling  of  the    spirit  duties 
will  .lilso  require  a  large  amount  of  fresh  capital,  and  the  addi- 
tional   S/tamp   duties    will   substantially   increase    our   expenses. 
We  wish   it  to  be  clearly  undersitood  that   we  take  no  exception 
to  the    Chancellor's  serlection   for   raising   the  revenue,    and   w(' 
are  of  opinion    that   it  should  be  cheerfully  borne,    having  iu 
view   the  gre.it  cause  we  so  much  desire  should  succeed.     Tlvi! 
old   grievance    which   we  have   endured   for    many  years  is   ac- 
cetituated  by  the  new  addition,  and  our  expenses  for  collection 
Vv^ill  be    largely  increased  without  any   recognition  for  our  ser- 
vices   or    interest    on    capital    employed.      Before    the    war    the 
charge  on  lh<:   business  for  collection  of  duties  was  ;^S,ooo  per 
annum,  for  which  we  did   not  receive   a  return  of   one  penny. 
We  have  not  had   the  opportunity  of  forming   a   calculation  of 
our  prospective   loss,  but  we  feel  that  it  will  not  be   less  than 
double    the   amount  stated.     In   these   very  dark  days  it  would 
seemi  out  of  place  to  ibe  giving   our  time   entirely    to  the  con- 
sideration  of   our   own    selfish   ends,    and   you    will    be  glad  to 
know  that  we  have  not  been  among  those  who  have  hamipered 
the    Government    with    criticism.       On    the    contrary,    we    have 
never  missed  an  opportunity   of    putting  our  shoulders  to   the 
wheel  to   assist   them   and   at    the   same  time,   without   relaxing 
our  efforts,  we  have  suggested  improvements  which  have  always 
received  consideration.     Now  that   the  various  methods  of  dis- 
tributing   foodsituffs    are    being    closely   examined,     the    puiblic 
utility  of  the  single-shop  grocers  has   been   demonstrated  in  a 
remarkable  degree.     In  numbers  they  exceed  every  other  source 
of  supply  to  the  consumer,  and  they  give  their  wide  range  of 
knowledge   daily  and   hourly    to  the  public.     They  are   on    the 
spot,   .nnd  personally  responsible    for    their  actions  to   all   their 
customers,   and   the  profits   they  make  are  spent  among    their 
neighbours.     Municipal  responsibilities  are  shouldered  by  them 
for  the  benefit   not  only  of  their   own  clientele,  but  for  all   the 
residents    in    their    neighbourhood.      In    good    and    prosperous 
times   they   have    been    persistently  attacked   by   all    kinds   of 
ingenious  "  catchpenny  "  methods,   and  in  some  cases  narrowly 
escaped    extermination,   but    they    have     proved    to    be   indis- 
pen.s.able,   and  it  is   sincerely  to  be   hoped   that  after   the    war 
their    indisputable    rigbtis    will     be    recognised    by     legislative 
support.     Above  and  beyond  this  cl.nss  of  retail  traders  are  the 
secondary,    or  country,  wholesalers,   who   collect  food  in    bulk 
in  localities  from  which  convenient  and   cheap  distribution   to 
the  small  class  of  retailer  can  be  best  effected.     This  is  a  very 
important    branch  of   the   grocery  business,   .nnd   is  manned   bv 
traders  of  great  intelligence   and  experience,  whose  outlook  on 
the  various   localities  in   which  they  are   operating  is  clear  and 
correct.     The   State  Controllers  of  food  had   not   proceeded   far 
before  they  discovered  the  valuable  services   which  were  being 
rendered    by    this    section.      For    more    than    two   centuries   we 
have  been  trading  with  these  branches  of  the  grocery  business, 
and  we  are  confident  that,  whatever  changes  there  may  bo  in 
the  near   future  in, other  directions,  this  community  will  justify 
their  position,  ,->,nd   we  hope   we   shall  long  continue  to  be  the 
recipients  of  their  good  will.     In  common  with  all  good  citizens, 
we  are   endeavouring   to   reorganise   our   business    to   meet    the 
requirements  of  the  Man-Power  Bill.     That  we  shall  be  severely 
hit   goes   without  saying,    but   at    the    very  worst  our  sacrifices 
can   never  be  compared  with   those  of  our   own   men  who  are 
fighting  and  dying  for  us   in  the  great  war.     Our  participation 


420 


XLbe  investors'  IReview. 


April  27,  1918. 


in  the  Army  is  represented  by  over  300  of  our  sUiff,  and  we 
.lire  very  proud  of  their  records.  Twenty-two  are  officers, 
ranging  from  heutenant-coionol  to  second  lieutenant  Many 
distinctions  have  been  won  both  by  officers  and  men-  2s 
have  been  killed  in  battle  or  died  of  wounds,  and  to  'their 
sorrowing  relatives  we  would  offer  our  deepest  sympathy 

The  Deputy-Chairm.-.n   (Mr.  A.   II.  Stableforth)  seconded  the 
motion,  which  was  carried  unanimously. 


GRAND    TRUNK    RAILWAY    OF    CANADA. 

The  ordinary  general  meeting  of  proprietors  of  the  Grand 
Irunk  Railway  Co.  of  Canada  was  held  at  the  Cannon  Street 
Hotel,  Cannon  Street,  K.C.,  on  Thursday.  Mr.  Alfred  W. 
Smithers  (chairman  of  the   company)  presided. 

The  Secretary  (Mr.  H.  H.  Xorman)  read  the  notice  convening 
the  meeting. 

The  Chairman  said  :  I  must  at  once  express  the  deep  disap- 
pointment with  which  the  board  present  to  you  to-day  the  very 
unsatisfactory  report  of  the  working  of  your  railway  for  1917. 
The  results  are  the  worst  since  iSgs,  and  they  arise  from  causes 
entirely  beyond  the  control  of  the  board  or  management.  This 
terrible  war  has  stimulated  business  of  all  kinds  in  Canada, 
especially  in  the  manufacture  of  munitions  and  other  require- 
ments of  the  Armies  and  in  the  general  demand  for  wheat  and 
foodstuffs.  It  has  led  to  a  great  drain  on  the  man-power  of 
th'i  Dominion  dn  providing  and  mainitaining  its  contribution  to 
the  Imiperial  Forces.  The  same  causes  have  been  prevalent  in 
Ancenca,  and  the  result  has  been  an  enormous  increase  in  the 
cost  of  labour,  coal,  and  all  materials  used  by  the  railway  com- 
panies. The  nett  result  to  our  company  for  the  past  year  is 
that,  whereas  we  carried  an  increased  traffic  amounting  to 
-^905.742— by  far  the  largest  traffic  in  our  history— instead  of 
making  any  profit,  the  carrying  of  that  enormous  traffic  caused 
an  increase  of  /i, 774, 867  in  expenses,  and  involved  a  nett  loss 
oni  the  ycoj-'s  working  of  ^^869,125.  This  occurred  in  spite  of 
the  great  efforts  of  our  officers  to  work  economically,  evidence 
of  which  is  clearly  shown  in  the  report  by  a  decrease  of  3,052,000 
train  miles,  or  13.34  per  cent. ;  while  the  gross  receipts  showed 
an  increase,  as  I  have  just  stated,  of  over  ^^900,000,  or  9.22  per 
cent.  The  following  are  the  principal  items  of  increased  cost 
of  working  :— Maintenance  of  way  and  structures,  increase 
;^324,ooo;  maintenance  of  equipment,  ;^42i,ooo;  and  conducting 
transportation,  ^^994,000.  These  increases  are  caused  by  the 
enormous  rise  in  wages  and  cost  of  material,  the  higher  cost  of 
coal  alone  amounting  to  about  /6oo,ooo.  The  obvious  and 
legitimate  way  to  ameliorate  this  state  of  affairs  was  to  obtain 
an  increase  of  rates.  To  obtain  this  the  companies  began  their 
arguments  before  the  Railway  Commission  in  April  of  last  year. 
I  went  to  Canada  in  May  and  did  not  return  until  November, 
and  I  can  assure  you  we  made  every  possible  effort  to  obtain 
permission  from  the  Railway  Commission,  of  which  Sir  Henry 
Drayton  is  the  chairman,  to  raise  the  rates.  No  relief  was 
granted  during  the  year,  and  only  on  March  15  this  year  was 
the  increase  of  rates  sanctioned  of  15  per  cent.,  which  we  asked 
for  last  April — an  increase  not  only  totally  inadequate  to  meet 
the  big  increase  in  expenses  since  that  date,  but  far  too  late 
to  meet  the  new  conditions  that  had  rapidly  developed  during 
the  summer  and  autumn,  and  had  caused  such  a  heavy  loss  to 
us  for  the  year  1917.  That  loss  was  entirely  caused  by  the 
war,  and  as  no  relief  was  granted  to  Ujs  to  meet  conditionus 
quite  beyond  our  conitrol,  that  loss  was  tantamount  to 
a  forced  contribution  by  the  Grand  Trunk  Co.  to  the 
people  of  Canada  for  that  amount.  The  Drayton  report 
dealt  with  the  position  of  the  whole  of  the  railways  in  Canada, 
and  its  proposals  with  regard  to  the  Grand  Trunk  and  Grand 
Trunk  Pacific  may  be  soimmed  up  as  follows  : — That  the  Grand 
Trunk  should  be  relieved  of  all  liability  with  regard  to  the 
Grand  Trunk  Pacific,  and  that  the  Grand  Trunk  Co.  should 
surrender  the  entire  share  capital,  guaranteed,  preference,  and 
ordinary  stocks  in  return  for  an  annuity  to  be  granted  by  the 
Government,  based  on  the  average  net  earnings  annually  dis- 
tributed by  the  company  during  the  ten  years  ended  December 
31,  1916.  No  provision  is  made  for  the  third  preference  or 
ordinary  stock,  the  whole  value  of  which  would  be  immediately 
wiped  out,  jepresenting  a  sum  of  about  ;^5,ooo,ooo,  even  reckon- 
ing the  low  market  price  of  the  stocks  at  the  time  the  Drayton 
report  was  issued.  This  extraordinary  and  confiscatory  pro- 
posal the  Drayton  report  recommends  as  final. 

The  Chairman  reviewed  at  length  the  history  of  the  com- 
pany, and  continued  :  In  the  65  years  of  the  company's  exist- 
ence it  has  never  defaulted  on  its  fixed  charges.  Let  me  sum  up 
the  position.  The  Canadian  Pacific  Railway  having  received 
assistance  from  the  Government  in  35  years  of  .^69,000,000,  is 
expected  to  be  able  to  boar  the  increased  expenses  without  in- 
fringing on  its  dividend  of  10  per  cent.  The  Canadian 
Northern,  which  has  received  Government  assistance  in  15  years 
of  ;f6o,ooo,ooo,  has  been  taken  over  by  the  Government  and  re- 
lieved of  all  liabilities,  while  the  Grand  Trunk,  which  has 
received  from  the  Government  and  municipalities  ;f5,6oo,ooo 
in  60  years,  is  at  present  awaiting  the  decision  of  the  Govern- 
ment as  to  its  future  policy.  No  increase  of  rates  that  it  would 
be  possible  to  levy  will  meet  the  case.  It  is  difficult  to  imagine 
within  the  limits  of  civil  life  a  more  difficult  or  uncongenial 
task  than  the  statement  it  has  been  my  duty  to  make  to  you 
to-day.  We  all  know  how  splendidly  Canada  has  come  forward 
to  the  aid  of  the  Motherland,  we  all  admire  the  courage  of  her 
men  and  the  devotion  of  her  women,  and  we  feel  overflowing 
with  gratitude  to  her  for  the  great  sacrifices  she  has  made. 
To  feel  it  one's  duty  to  do  anything  to  cause  any  difficulty  or 


embarrassment  to  the  Canadian  Government  in  the  midst  of 
such  a  time  is  indeed  revolting  to  one's  feelings.  Still,  however 
hard,  the  call  of  duty  has  to  be  answered,  and  it  has  been,  and 
IS,  the  duty  of  your  directors  to  fight  to  the  best  of  our  ability 
for  fair  and  just  treatment. 

Sir  Henry  Jackson,  Bart.,  seconded  the  motion,  which  wa- 
carried  unanimously. 

On  the  motion  of  Sir  Robert  Perks,  a  resolution  was  carried 
unanimously  protesting  against  the  unjust  terms  imposed  upon 
the  company  during  the  past  year;  approving  of  the  steps 
taken  by  the  chairman  and  directors  during  the  past  year,  and 
strongly  supporting  them  in  their  efforts  to  obtain  fair  and 
just  treatment. 

OOREGUM    GOLD    MINING. 

The  ordinary  general  meeting  of  the  Ooregum  Gold  Mining 
Co.  of  India,  Ltd.,  was  held  on  Tuesday  at  the  Cannon  Street 
Hotel,  E.C.,  Mr.  Malcolm  Low  (chairman  of  the  company) 
presiding. 

The  Secretary  (Mr.  F.  H.  Williams,  F.C.I. S.)  having  read 
the  notice  convening  the  meeting  and  the  report  of  the 
auditors, 

The  Chairman  said  :  Our  report,  opens  with  .\  sutement  as 
to  the  tonnages  dealt  with  at  the  mill  and  at  the  cyanide  works, 
which  respectively  amounted  to  155,080  tons  and  205,497  tons, 
showing  a  respective  decrease  of  237  tons  and  17,858  tons  a^ 
compared  with  the  figures  of  the  year  before.  These  decreases 
notwithstanding,  you  will  see  that  we  have  no  cause  for  dis- 
satisfaction in  the  result  of  our  ultimate  aim — namely,  the  pro- 
duction of  gold.  That  production  amounted  to  90,687  oz.->.  of 
fine  gold,  showing  the  very  slight  increase  of  66  02s.  over  the 
figure  of  the  previous  year,  which  recorded  a  result  better 
than  the  company  had  ever  before  achieved.  The  decreases 
in  quantities,  in  fact,  are  rather  more  than  balanced  by  a 
slightly  highei  average  yield  of  gold  at  the  mills  and  a  slightly 
better  extraction  from  the  slimes.  As  in  former  years,  I  shall 
leave  the  whole  account  of  our  mining  work  and  of  the 
prospects  follo\ving  it  in  the  able  hands  of  Mr.  Edgar  Taylor, 
but  I  am  sure  he  will  forgive  me  for  laying  emphasis  just  on 
two  points  in  his  department.  The  first  is  the  satisfactory 
condition  of  our  ore  reserves,  which  at  the  close  of  the  year 
stood  at  the  fine  figure  of  nearly  415,000  tons;  and  the  second 
is  the  encouraging  prcspects  which  we  are  now  having  in  the 
deepest  levels  in  Mullen's  and  Oakley's  sections  of  the  mine. 
Turning  to  the  accounts,  the  balance-sheet  shows  that  we  have 
charged  to  capital  account  three  items,  amounting  in  all  to 
;£'i7,o2o.  This  is  a  decrease  on  the  corresponding  charge  in 
the  previous  year  of  no  less  than  ^20,088,  which  is  due,  of 
course,  largely  to  the  temporary  cessation  of  work  on  circular 
shaft.  This  year  the  three  items  were  ;f  14,404  for  machineiy 
and  plant,  ;if229  for  circular  shaft,  and  .^2,386  for  work  on  a 
property  on  which  we  held  an  option,  but  which  option  we 
have  since  relinqui.shed,  finding  the  property  was  not  worth 
while  pursuing.  The  effective  steps  -taken  to  meet  capital 
expenditure  will  be  seen  in  the  profit  and  loss  account,  where 
a  total  of  ;^28,273  "s  shown  as  written  off  in  three  items — 
^^25,000  in  respect  of  depreciation  of  machinery  and  plant. 
;^229  on  account  of  circular  shaft,  and  £3,043  on  account  of 
exploration.  Thus  the  whole  capital  expenditure  of  the  year 
has  been  more  than  replaced  by  a  good  many  thousands  of 
pounds.  We  have  further  helped  the  resources  of  the  com- 
pany by  appropriating  from  the  profits  ;^5,ooo  and  adding  it 
to  the  reserve  fund,  which  now  amounts  to  the  fine  figure  of 
.^90,000,  all  of  it  invested  outside  our  own  business,  and  more 
than  half  of  it  in  war  stocks.  We  have  also  added  ;^i,ooo  to  the 
local  insurance  and  contingency  fund,  bringing  that  fund  up  to 
^4,242.  Having  analysed  the  accounts,  he  continued  :  The 
total  amount  on  the  debit  side  of  the  profit  and  loss  account  is 
^^109,157  14s.  gd.,  which,  deducted  from  the  final  figure  on 
the  other  side,  leaves  us  with  a  present  disposable  balance  of 
£^3<975  '4s-  8d.  This  will  admit  of  a  final  dividend  of  is.  6d. 
per  share  on  both  classes  of  shares,  bringing  the  total  divi- 
dends of  the  year  up  to  4s.  per  share,  or  40  per  cent.,  on  the 
preferred  shares,  and  3s.  per  share,  or  30  per  cent.,  on  the 
ordinary  shares,  being  exactly  the  same  as  last  year.  The  past 
year  has  undoubtedly  brought  with  it  special  war-time  diffi 
culties  peculiarly  besetting  oversea  enterprises  like  our  own, 
and  these  difficulties  are  still  confronting  us  in,  perhaps,  a 
somewhat  intensified  degree.  I  do  not  claim  that  we  have 
conquered  them  all,  but  we  on  this  side  and  our  superintendent 
on  the  other  side  have  certainly  achieved  no  small  measure  of 
success.  They  are  difficulties  mainly,  though  not  exclusively, 
of  maintenance  and  supply,  and  here  the  experience,  the 
vigilance,  and  the  energy  of  our  managers  have  come  con- 
spicuously to  our  support.  What  we  hope  is  that  vou  will 
judge  your  interests  not  to  have  suffered  from  any  menace  that 
it  was  possible  for  us  to  foresee  and  to  avert.  I  beg  now  to 
propose  the  adoption  of  the  report  and  accounts. 
Mr.  John  Taylor,  M.Inst.C.E.,  seconded  the  motion. 

Mr.  Edgar  Taylor  said  :  The  paragraphs  in  the  directors'" 
report  which  refer  directly  to  the  company's  mining  operations 
will  have  shown  you  that  the  year  has  been  one  of  continued 
activity,  despite  the  difficulties  of  war  conditions.  We  have 
been  pas-sing  through  a  period  of  unproductive  exploration  in 
parts  of  Bullen's  section  of  the  mine,  but  we  have  also  had 
favourable  features,  notablv  in  the  deepest  working,!  at  Oakley's 
section.  The  j-ear's  development  work  of  0,244  ft.  compares 
with  11.159  ft.  during  the  previous  year.  The  shaft-sinking 
amounted  to  626  ft.  at  Taylor's,  Oakley's,  and  Bullen's  shafts, 
^nd  is  practically  the  same  as  in  Ihe  year  before.     The  prin- 


April  27,  1918. 


tCbe  Jnveators'  IReview. 


i" 


cipal  decreases  of  footage  are  to  be  found  under  the  headings 
of  exploratory  crosscutting  and  winzes  on  reef.  It  will  have 
been  observed  from  the  directors'  report  that,  although  no 
further  sinking  of  circular  shaft  had  been  accomplished  during 
the  year  under  review,  principally  with  a  view  to  economy  in 
explosives,  it  had  now  become  possible  to  resume  operations 
liere,  and  sinking  has  been  recommenced.  The  ore  reserves  are 
now  estimated  to  amount  to  414,783  tons,  the  .small  decrease  of 
some  6,000  tons  being  due  to  the  exclusion  of  certain  blocks  of 
ore-ground  standing  in  Bullen's  section,  where  the  proximity 
of  disturbing  cress-courses  renders  the  calculation  of  tonnages 
uncertain.  It  is,  nevertheless,  reasonable  to  assume  that  when 
.sloping  operations  are  commenced  in  these  blocks,  they  will 
eventually  yield  a  very  considerable  quantity  of  valuable  ore. 
The  ore  milled  was  of  slightly  higher  grade,  the  reduction 
plants  show  increasing  efficiency,  and,  by  a  continuance  of 
careful  and  systematic  experiments,  it  is  hoped  that  even 
better  extraction  than  at  present  will  be  possible. 
The  report  was  unanimously  adopted. 


difficult,  he  believed,  than  any  they  had  had  to  deal  with  dur- 
ing the  war;  but  if  they  continued  to  show  as  strong  a  position 
as  they  were  able  to  do  to-day,  he  thought  the  Standard  Bank 
would  be  able  to  face  the  future  with  confidence.  He  concluded 
by  mov+ng  the  adoption  of  the  report  and  accounts. 

Sir  David   Barbour  seconded  the  motion,  which  was  carried 
unanimously. 


STANDARD    BANK    OF    SOUTH    AFRICA. 

The  105th  ordinary  meeting  of  the  Standard  Bank  of  South 
Africa,  Ltd.,  was  he'.d  on  Wednesday  at  the  Cannon  Street 
Hotel,  Mr.  Horace  Peel  presiding. 

The  Secretary  (Mr.  John  Jeffrey)  read  the  notice  and  the 
report  of  the  auditors. 

The  Chairman,  dealing  first  with  the  balance-sheet,  said  that 
the  note  circulation  had  increased  by  close  on  ;^6oo,ooo.     This, 
he  believed,  represented  to  a  large  extent  an  economy  in  the  use 
of  gold,  which  was  good,  but  in  some  degree  it  meant  an  in- 
crease in  the  total  currency,  which  was  undesirable,  as  every 
large  increase  in  currency  must  tend  to  stimulate  the  continuing 
rise  in  the  price  of  all  commodities.     Deposits  had  increased  by 
over  7i  millions,  and  the  total  increase  under  this  head  since 
the  beginning  of  the  war  has   amounted  to  over    11    millions. 
This  might  be  regarded  as  a  sign  that  South  Africa  had  been 
prospering,  but  it  also  showed  that  there  had  been  a  falling  off 
in  the  demand  for  capital  for  commercial  and  industrial  enter-- 
prise,  owing,  no  doubt,  to  the  conditions  of  war.     When  more 
normal  conditions  returned  they  would  certainly  find  that  these 
increased  deposits  would  be  largely  availed  of,  and  it  behoved 
the  bank  to  see  that  their  position  was  as  liquid  as  possible,  so 
that  they  might  be  in  a  position  to  meet  the  heavy  demands 
which  no  doubt  would  arise  for  the  vast  amount  of  capital  that 
would    be   required    for    the    renewal    and   reconstructive   work 
which  had  been  necessarily  interrupted  by  war  conditions  and 
for  the  developnient  of  new  enterprises.     On  the  assets  side  the 
cash   position   showed    an   increase   of    ;f  1,650,000,    the   invest- 
ments, which  had  been  written  down  to  market  price,   showed 
an  increase  of  over  ;^87,ooo,  and  their  holding  of  bills  had  in- 
creased by  ;f3, 385,000.     The  two  items  of  cash  and  bills  repre- 
sented close  on  47  per  cent,  of  the  deposits  and  note  circulation. 
Bills  discounted  and  advances  to  customers  showed  an  increase 
Of  just  over  ;£ 3,000,000.     The  increase  in  advances  was  largely 
due  to  the  assistance  they  had  been  able  to  give  to  their  cus- 
tomers in  financing  consignments  of  produce  pending  shipment. 
The  profit  and  loss  account  showed  a  total  of  ;i£'5o6,774,  which 
included  ^f  100,000  brought  forward.     They  had  paid  an  interim 
dividend  at  the  rate  of  14  per  cent,  per  annum,  they  had  placed 
^25,000  to  bank  premises  account,  and   ;f  10,000  had  been  ap- 
plied  to  investment  depreciation   account.     It   was   proposed   to 
place  ;f3o,ooo  to  officers'  pension  fund,  to  pay  a  final  dividend 
at  the  rate  of  r4  per  cent,   per  annum,   and  a  bonus  of   is.   4d. 
per  share,  making  a  total  distribution  for  the  year  of  155^  per 
cent.,  and  to  carry  forward  ;f 204,333.     He  thought  the  share- 
holders would  agree  that  these  figures  made  a  satisfactory  show- 
ing for  the  year's  operations.     Turning  to  more  general  matters, 
he  said  that  the  bank  had  opened  branches  at  Nakuru,  in  the 
centre  of  the  agricultural  district  lying  about  120  miles  north- 
west  of    Nairobi,    and    at    Tabora,    in    the    occupied    territory 
formerly  German  East  Africa.     The  agencies  at  Brakpan  and 
Newtown,    in    the    Transvaal,   had    been    converted    into    full 
branches.     Since  the  beginning  of  January  this  year  the  bank's 
activities  had  been  further  extended  to  Kisumu,  a  port  on  the 
north-eastern  corner  of  Victoria  Nyanza,   and  the  terminus  of 
the  Uganda  Railway,  and  also  to  Muansa,  an  important  town 
situated  in  former  German  territory  on  the  southern  shore  of 
Victoria  Nyanza.     As  regarded  trade  conditions  generally,   he 
thought  it  might  be  said  that  they  were   good,  and   that   the 
country,  as  a  whole,  had  prospered  in  spite  of  the  dislocation 
caused  by  the  war  and  the  difficulties  which  had  been  experi- 
enced in   South  Africa,  as  elsewhere,  by   reason  of  the  serious 
shortage  of  freight.     Before  concluding,  he  wished  to  refer  to 
the  bank's  business   in   British  East  Africa,  which  was  expand- 
ing satisfactorily.     They  had   now   seven  branches   in   Uganda 
and   British  East  Africa,  and  the  business  of  these  branches, 
spread  over  an  area  almost  half  as  large  again  as  the  Union  of 
South  Africa,  was  going  to  increase,  and  when  normal  condi- 
tions returned  they  must  be  prepared  to  deal  with  it.    Although 
in  some  respects,  notably  in  regard  to  the  currency,  the  condi- 
tions were  different  from   those   ruling   in   South   Africa,   they 
had   an   excellent   staff  of   officers,   who   were   thoroughly   con- 
versant  with   local   requirements   and   the  needs  of    their   cus- 
tomers.    Their  secretary,  Mr.  Jeffrey,  recently  made  a  journey 
through  a  great  part  of  this  most  interesting  country,  and  he 
had  made  for  the  directors  an  extremely  valuable  report,  which 
would  be  of  the  greatest  use  to  them  in  their  future  work.     This 
work,  as  the  Business  of  the  bank  expanded,  tended  each  year  to 
become  more  exacting,  and  no  doubt  when  the  war  came  to  an 
end  they  would   be  faced   with  many  difficult  problems— more 


ARGENTINE  TOBACCO  CO. 

The  sixth  ordinary  general  meeting  of  the  Argentine  Tobacco 
Co.,  Ltd.,  was  held  on  Friday  at  Winchester  House,  Old  Broad 
Street,  E.C.,  Baron  Emile  B.  d'Erlanger,  chairman  of  the 
company,  presiding. 

The  Secretary  (Mr.  Geo.  Frampton)  having  read  the  notice 
convening  the  meeting  and  the  report  of  the  auditors, 

The   Chairman,   in  moving  the   adoption  of  the  report  and 
accounts,   said  that  they  had  approximately  ;rfi  ,050,000  worth 
of   liquid  assets   as  compared  with  ;^i, 010,000  a  year  ago — aa 
against   some  ;^575,5oo  of  liabilities,  including  the  debentures 
outstanding.     Further,  their  fixed  plant   and  machinery  stood 
at  the  very  low  figure  of  ;^40,ooo.     They  also  owned  freehold 
land  and  buildings  to  the  amount  of  ;£'i35,ooo.     On  the  debit 
side  of   the  balance-sheet  the   only  amount   to  which  he  need 
draw  attention  was  the  sum  of  ^^  154,000  for   sundry  creditors 
and  credit  balances.    This  showed  a  reduction  as  compared  with 
last  year  of  j^2o,ooo.     As  he  had  stated  when  addressing  the 
shareholders  last  year,  this  figure  of  ;f  154,000  included  a  reserve 
for  contingencies  now  amounting   to   some  ^^30,000.     Passing 
from  the  balance-sheet  to  the  profit  and  loss  account,   it  would 
be  seen  that  their  trading  profit  was  ^^275,000,  which  showed  a 
decrease  as  compared  with  the  previous  year  of  something  like 
;^74,ooo ;  but,   on  the  other  hand,    further  economies  had  been 
made  on  the  other  side,  with  the  result  that  the  general  charges 
only  amounted  to  ^123,000,  showing    a  'reduction   of  ;ifi7,ooo. 
After  charging  their  expenses,  which  had  to  be  deducted  from 
the  tradirrg   profit  of  ^^275,000,   there  remained   a   balance  of 
^152,000.    To  that  must  be  added  income  from  investments  and 
interest  received  in   London,  some  ^^7,000,   and   a    small   figure 
in  respect  of  transfer  fees ;  and  the  nett  profit,  after  deducting 
trustees  fees,  London  office  expenses,  income-tax,  and  debenture 
interest,  amounted   to  ;j^ii2,ooo,  to  which  had  to  be  added  a 
transfer    from  reserve   for  contingencies  of   .£3,370,   making   a 
balance  of  approximately  ^ii6,chx>,  representing  the  amortisa- 
tion of  ;f  110,400  of  debentures  at  105  per  cent.     The  manner  in 
which  the  balance  of  the  profit  and  loss  account  had  been  dealt 
with    was    apparent    from    the     appropriation    account,    viz., 
^30,400   had  been  placed  to  depreciation,  and  ^80,000  had  been 
used   in    the  reduction   of   goodwill.      He  had    been  asked   by 
various  shareholders  why  they  applied  to  the  reduction  of  good- 
will the  ;£8o,ooo   remaining  out   of  profits  after  allowing    for 
premium  on   debentures  and  depreciation.      They  were   under 
the   mistaken   impression  that    the   ;£8o,ooo    in    question   were 
available  for,  and  might  have  been  applied  to,  the  payment  of 
dividends.     Though  this  point  had  been  dealt  with  by  him  on 
a  previous  occasion,   he  thought  it  was  as  well  to   explain  it 
once  more.    The  ^£80,000  added  to  the  ^£30,000  for  depreciation 
and  the  ^^5,000  representing  the  premium  on  debentures  made 
a  total  of  /i  15,000.     That  was  the  exact  amount  which  they 
had  disbursed  in  cash  in  respect  of  the  repayment  of  deben- 
tures out  of  the  profits  for  the  year.     By  that  repayment  they 
had  reduced  their  liabilities  by  jf  110,000."    In  order,  therefore, 
that  their  accounts  shouM  balance,  they  must  either  reduce  their 
assets,  that  was  to  say,  the  credit  side  of  their  balance-sheet, 
or  create  a  reserve  on  the  debit  side.     That  was  a  pure  matter 
of  bookkeeping',  for  it  was  obvious  that  the  cash,  having  been 
used  in   repaying  debentures,    was  no  longer    available.     The 
reluctance   he    had     displayed    at    the    last    meeting    to    deal 
prematurely  with   a  reconstruction  scheme,   which    would   free 
the  profits  for  dividend  purposes,  only  too  clearly  indicated  that 
they  had  some  misgivings  as  to  the  possibility  of  maintaining 
their  profits.     The  accounts  now  before  them  shovrcd  that  those 
fears  had  materialised.     They  had  not  yet  found  it  possible  to 
arrest  the  decline  of  profits,  which  was  mainly  due  to  the  fact 
that  all  costs  in  relation  to  the  production  of   the  article  they 
sold  had  risen  considerably,  and  that  no  means  had  yet  been 
found  to  raise  concurrently  and  proportionately  the  selling  price. 
That  state  of  things,  which,  as  long  as  the  war  went  on,  would 
only   have  a    tendency  to   become   worse,    had   had,    and   was 
having,  the  consi^deratioh  and  incessant  attention  of  the  board, 
and   Baron  Portalis,  one  of  their  directors,  was  at  present  m 
the  Argentine,  and  was  studying  the  situation  thoroughly  with 
a  view,  if  possible,  to  improving  matters.     They  might  depend 
upon  it  that,  with  the  assistance  of  his  colleagues  here  and  in 
Argentina,   he  would  do   what  was  humanly  possible   to  steer 
their  ship  clear  of  troubled  waters,  and  more  he  could  neither 
say  nor  do. 

Mr.  Francis  Fitzgerald  seconded  the  motion,  which  was 
carried  unanimously. 

LONDON  AND  BRAZILIAN   BANK. 

The  forty-seventh  annual  ordinary  general  meeting  of  the 
shareholders  of  the  London  and  Brazilian  Bank,  Ltd.,  was  held 
on  Friday,  at  the  offices,  No.  7,  Tokenhouse  Vard,  E.C.,  Mr. 
John  Beaton,  the  chairman  of  the  company,  presiding. 

The  Secretary  (Mr.  A.  W.  Saunders)  having  read  the  notice 
convening  the  meeting  and  the  auditors'  repon,  and  the  minutes 
of  the  last  meeting  having  been  taken  as  read, 

The  Chairman,  in  moving  the  adoption  of  the  report  and  ac- 


4ii 


Ube  Jnveetors*  iRevieW* 


April  27,  1918. 


counts,  said  that  notwithstanding  the  restrictions  in  connection 
with  foreign  banking,  they  were  able  to  put  before  the  share- 
holders a  satisfactory  result  of  last  year's  business.  The  nett 
profits  amounted  to  ;f238,535,  being  an  increase  of  ;f37,ooo  on 
that  of  1917.  Adding  thereto  the  balance  brought  forward, 
there  was  an  uvail.ibic  balance  of  £^;iy,,]^S-  ('omparing  the 
balance-sheet  with  the  preceding  one,  its  total  showed  a  small 
reduction  of  ;^5,7oo.  The  deposits  and  current  account  at  the 
branches,  ;^8,99o,ooo,  were  £6^6,or>o  more,  and  those  in  London 
;£i  10,000.  The  bills  payable  were  ;^92o,ooo  less,  and  also  the  bill.s 
receivable  ;^i, 024,000.  Those  reductions  were  the  result  of  a 
continual  larger  use  of  cable  payments  in  which  they  had  done 
a  very  large  business.  The  bills  for  collection,  ;j3,388,ooo,  were 
^'137,000  more.  On  the  assets  side  the  cash,  ^^4, 365,000,  was 
;i'57(),ooo  less.  The  bills  discounted  and  loans,  ^8,124,000, 
showed  the  large  increase  of  ^/i, 665,000 — consequent  on  greater 
activity  generally,  and  with  better  rates  of  interest.  In  the 
bank  premi.ses  there  was  an  increase  of  ;f44,ooo.  Turning  to  the 
profit  and  lo.ss  account,  the  gross  profit  was  ^^38,000  more,  and 
also  the  charges  to  the  extent  of  /34,ooo,  which  was  due  to  a 
higher  exchange  in  Brazil,  and  to  increases  of  salaries  and  war 
allowances,  for  which  he  prepared  them  last  year.  It  also  in- 
cluded ;rfi,9oo  grants  to  war  charities.  The  available  balance 
amounted  to  .jf537.,385,  which  they  proposed  to  deal  with  as 
follows  :  They  paid  an  interim  dividend  last  October  of  14s. 
per  share,  making  the  dividend  for  the  year  14  per  cent.  They 
also  recommended  the  payment  of  a  tonus  of  4s.  per  share,  thus 
making  a  total  distribution  of  iG  per  cent,  on  the  paid-up  capital. 
These  payments  would  absorb  ^200,000,  leaving  a  balance  of 
/•337'3^5'  which  they  recommended  should  be  appropriated  as  fol- 
lows :  ;f25,ooo  in  reduction  of  premises  account,  ;^i2,ooo  for  the 
payment  of  a  bonus  to  the  staff  of  y'/i  per  cent,  on  their  salaries, 
and  ;^3oo,385  to  be  carried  forward.  Referring  to  the  condi- 
tion of  affairs  in  Brazil,  the  Chairman  said  that  with  regard  to 
that  country's  war  expenditure  and  financial  position,  it  was 
satisfactory  to  know  that  she  was  deriving  great  advantages  from 
the  war,  not  only  by  the  increased  value  of  her  old  exports, 
but  also  by  others  that  had  developed  since  191 4,  and  which 
were  being  produced  each  year  in  larger  quantities.  Besides 
these  advantages,  the  Brazilian  merchants  were  doing  a  much 
larger  business  than  before  the  war  to  the  enrichment  of  their 
country.  The  difficulty,  however,  of  moving  the  main  product, 
coffee,  owing  to  lack  of  shipping,  was  undoubtedly  causing  in- 
convenience, but  the  San  Paulo  State  Government  were  purchas- 
ing three  million  bags.  In  Argentina  the  wheat  crop  was  excep- 
tionally large,  and  was  garnered  in  good  condition,  about  3% 
million  tons  being  available  for  export.  The  scarcity  of  ship- 
ping was,  of  course,  a  drawback,  but  things  generally  in  Argen- 
tina were  looking  much  brighter  than  for  some  years  past.  The 
only  cloud  was  the  chronic  labour  unrest.  They  had  arranged 
an  agency  at  Manchester  in  combination  with  Messrs.  Williams 
Deacons  and  Co.,  of  that  city-,  their  object  in  this  arrangement 
being  to  afford  facilities  in  the  transaction  of  business  generally 
and  particularly  with  the  United  States  of  Brazil.  A  South 
American  department  had  been  opened,  and  that  firm  would  act 
as  agent  for  this  bank  and  the  Anglo-South  American  Bank, 
which  would  be  the  means  of  avoiding  delay  in  financing  busi- 
ness through  London. 

Mr.  \V.  D.  Hoare  seconded  the  resolution,  which  was  carried. 


NEW    TRANSVAAL    CHEMICAL. 

The  twenty-second  ordinary  general  meeting  of  the  New 
Transvaal  Chemical  Co.,  Ltd.,  was  held  on  Tuesday  at  Win- 
chester House,  Old  Broad  Street,  E.C.,  Baron  Emile  B. 
d'Erlanger  (chairman  of  the  company)  presiding.    , 

The  Secretary  (Mr.  J.  M.  B.  Stubbs)  having  read  the  notice 
convening  the  meeting  and  the  report  of  the  auditors. 

The  Chairman  said  :  The  report  and  accounts  presented  to 
you  to-day  are  an  eloquent  testimonial  of  the  steady  progress  of 
this  enterprise,  and  consequently  I  shall  be  very  brief  in  my 
explanation  of  the  accounts.  As  you  will  see  by  a  comparison 
between  the  accounts  of  last  year  and  this  year,  the  share 
capUal  has  been  increased  by  ;^24,5oo,  the  sundry  creditors 
have  increased  by  ;f6o,ooo,  the  bankers'  advances  have  in- 
creased by  ;^47,ooo,  and  the  profit  and  loss  account 
has  increased  by  some  ;f  11,000.  Taking  the  credit 
side  of  the  balance-sheet,  we  show  a  reduction  in 
our  cashi  balamce  of  /3,5oo,  a  reduction  of  ;^2o,7oo  in 
bills  payable,  and  a  reduction  of  some  ^3,000  in  sundry 
creditors;  but,  on  the  other  hand,  the  investments  have  in- 
creased by  ^'72,000  in  associated  companies  and  loans,  and  the 
shares  in  stocks  have  increased  by  ;^82,ooo,  while  the  works, 
premises,  and  plant  have  increased  by  /8,ooo.  You  will  see 
that  this  year  for  the  first  time,  instead  of  deducting  deprecia- 
tion from  the  amount  of  our  plant,  we  have  opened  a  special 
account,  which  is  credited  with  £,T,y(>^,  while  we  are  placing  a 
further  sum  of  £,-],yi\,(i  to  that  account.  From  the  foregoing 
review  of  our  accounts  and  the  previous  balance-sheet  it  will, 
in  the  first  instance,  be  clearly  seen  that  the  security  for  our 
first  preference  and  "A"  preference  .slhares  has  been  steadily  and 
considerably  increased.  This  is  due  principally  to  the  fact  that 
no  moneys  have  been  taken  out  of  the  concern  beyond  an 
amount  approximately  corresponding  to  the  dividend  received 
on  the  150,000  Lever  shares  owned  by  this  company.  If  a  20 
per  cent,  dividend  has  been  or  is  being  paid  on  the  ordinary 
shares,  the  whole  proceeds  thereof  are  immediately  used  by  the 
recipients  in  subscribing  to  ordinary  shares.  Indeed,  the 
secret  of  a  prosperous  and  growing  industrial  business — a 
secret  which  has  not  yet  been  understood  as  it  ought  to  be  by 


the  British  investing  public — is  that  it  is  incompatible  with 
good  finance  to  take  out  of  profits,  for  purposes  of  distribution, 
more  than  a  rdatively  small  proportion  of  the  profits  earned. 
There  is  another  lesson  to  be  gleaned  from  our  reports  and 
accounts,  and  that  is  with  reference  to  our  duties  toward  the 
country  from  which  we  derive  our  profits.  Never  has  the 
duty  of  assisting  every  component  part  of  the  British  Empire 
to  be  self-supporting  and  self-contained  for  the  essentials  of 
life  been  greater.  In  this  respect  the  traditions  of  the  New 
Transvaal  Chemical  Co.  are  being  maintained.  We  were  the 
first  to  make  South  Africa  independent  in  respect  of  sulphuric 
acid  for  the  mining  industry.  We  subsequently  made  the 
country  independent  of  the  imports  of  candles  for  mining  and 
for  the  general  public.  Then  we  have  allowed  the  whole  popu- 
lation of  .South  Africa  to  use  home-madf  soap.  Now  wr  are  endea- 
vouring to  make  South  Africa  independent  of  the  import  of 
boxes  ft)  pack  its  various  produce.  A.ssociated  with  thiseraterprij-e 
since  its  earliest  days  was  Mr.  Perrott,  ono  of  your  directors,  and 
you  will  no  doubt  like  to  be  associated  with  this  board  in 
an  expression  of  regret  at  the  loss  sustained  by  his  death.  The 
soul,  however,  of  this  business  has  been,  and  still  is,  iJr 
Schlesinger-Delmore,  our  managing  director  in  South  Africa, 
and  only  a  few  days  ago  we  were  apprised  of  the  death  of  his 
wife,  to  whom  the  Doctor  was  deeply  attached.  May  I  be 
allowed  to  convey  to  him,  in  our  name  and  yours,  with  the 
deep  appreciation  of  his  long  and  loyal  services,  the  expression 
of  our  deep-felt  sympathy  in  his  bereavement?  I  beg  formally 
to  move  :  "  That  the  report  and  accounts  now  presented  be  and 
the  same  are  hereby  received  and  adopted." 

The  Hon.   Cecil  A.   Campbell  seconded  the  resolution,  which 
was  carried  unanimously. 


NUNDYDROOG   CO. 

The  twenty-fifth  ordinary  general  meeting  of  shareholders  of 
the  Nundydroog  Co.,  Ltd.,  was  held  on  Wednesday,  at  Cannon 
Street  Hotel,  E.C.  Captain  W.  B.  McTaggart,  D.L.,  J. P., 
chairman  of  the  company,   presided. 

The  Chairman  said  :  In  the  12  months  99,345  tons  of  quartz 
were  crushed,  and  75,762  tons  of  tailings  and  68,354  tons  of 
slime  were  treated,  the  total  yield  being  89,i8<)  ozs.  of  bar  gold, 
equal  to  79,586  ozs.  of  fine  gold,  of  a  value  of  ^^337, 348  8s.  sd. 
The  quantity  of  quartz  dealt  with  showed  an  increase  of  1,345 
tons,  and  the  gold  produced  at  the  mill  was  greater  by  4,452 
czs.,  but  12,004  tons  of  tailings  and  17,034  tons  of  slime  less 
were  treated  than  in  the  previous  year,  resulting  in  a  falling  of} 
of  6,211  ozs.  of  gold ;  {he  net  decrease  was  therefore  1,759  ozs.  of 
bar  gold,  of  a  value  of  £.J„i^'fi  2s.  iid.  Compared  with  1916, 
marked  advantages  are  apparent  from  the  finer  grinding  of  the  ore 
both  in  the  amalgamating  and  cyaniding  processes.  The  total 
extraction  improved  from  93.35  to  96.1  per  cent.,  and  the  super- 
intendent anticipates  that  this  percentage  will  be  still  higher  in 
1918,  as  the  benefit  derived  from  this  treatment  of  the  ore  was 
only  partly  felt  during  the  period  under  review.  It  may  lie 
mentioned  that  the  total  extraction  in  December  la.st  amounted 
to  98  per  cent. — the  combined  value  of  the  sand  and  slime  going 
to  waste  being  only  7.2  grains  per  ton.  The  accounts  show  that 
the  expenditure  on  revenue  was  ^'177,052  19s.,  and  that  the  re- 
ceipts, after  deducting  royalties,  amounted  to  ;f 318,611  7s.  2d., 
leaving  a  profit  of  £.\i,-i,c^'^%  8s.  2d.,  or  ;^r3,oii  9s.  id.  less  than 
that  of  the  preceding  year.  The  revenue  costs  were  ;f9,8i3 
IIS.  id.  greater  than  in  1916,  due  chiefly  to  the  greatly  increased 
cost  of  materials  and  stores  and  the  higher  rates  of  exchange  for 
remittances  to  the  mines.  The  items  on  the  credit  side  of  profit 
and  loss  account  total.  ;f  150,067  13s.  iid.,  against  which  has 
been  debited  /i  13,965  14s.  3d.,  as  detailed  in  the  account,  leav- 
ing a  credit  of  ;53^)'°'  'O^.  8d.,'  out  of  which  a  balance  divi- 
dend of  IS.  2d.  per  share  was  declared  payable  on  March  21 
last,  requiring  ;f33,oi6  13s.  4d.,  and  permitting  of  ^'3,085  6s.  4d. 
being  carried  forward.  The  total  distribution  of  dividend  for 
the  year  was  3s.  4d.  (less  income-tax)  per  los.  share,  as  com- 
pared with  3s.  6d.  (less  income-tax)  per  share  for  the  preceding 
year.  Having  regard  to  the  difficulties  under  which  business 
is  now  conducted,  the  directors  propose  to  pay  dividends  in  two 
instalments  a  year  instead  of  three  as  hitherto,  thereby  effecting 
a  considerable  saving  in  cost  and  labour.  Under  this  arrange- 
ment the  next  interim  dividend  will  become  due  in  September, 
and  the  balance  dividend  will  be  payable  in  the  month 
of  March.  Capital  outlay  on  new  buildings,  machinery,  plant 
and  furniture  totalled  ^24,598  19s.  3d.,  and  the  expenditure  on 
new  circular  .shaft  amounted  to  /i2,9o3  ^s.  4d. ;  both  of  these 
.sums  have  been  charged  against  the  profits  of  the  year.  Experi- 
ments have  proved  that  the  accumulated  slime  at  the  mines  on 
the  Kolar  gold  field  can  be  used  in  the  manufacture  of  bricks, 
crucibles,  &c.,  suitable  for  mining  purposes;  a  small  company 
called  the  Kolar  Brickmaking  Co.,  Ltd.,  with  a  nominal  capital 
of  ;^io,ooo,  has  therefore  been  formed  to  carry  on  this  enterprise. 
So  far  ;f5,ooo  has  been  issued,  exclusively  to  companies  operat- 
ing on  the  Kolar  gold  field,  out  of  which  this  company  has 
taken  up  1,250  shares  at  £,\  each.  At  December  31  last  the 
shares  were  10s.  per  share  paid.  The  Nundydroog  Co.  entered 
into  an  agreement  with  the  Brickmaking  Co.  whereby  the  latter 
undertakes  to  supply  the  former  with  its  requirements  for 
mining  purposes.  The  prices  of  the  bricks  will  be  lower  than 
the  present  rates,  and  the  advantages  of  a  local  supply  are  im- 
portant.    He  moved  the  adoption  of  the  report  and  accounts. 

Mr.   John   Taylor    seconded    the   resolution. 

Mr.  Edgar  Taylor  gave  an  exhaustive  technical  report  of  the 
W'orking  at  the  mine. 

The  resolution  was  agreed  to  unanimously. 


April  27,  1918. 


Zbc  Jnvestots'  IRevfew* 


423 


PARA    ELECTRIC    RAILWAYS    AND 
LIGHTING    CO. 

The  thirteenth  ordinary  general  meeting  of  the  Para  Electric 
Railways  and  Lighting  Co.,  Ltd.,  was  held  on  Monday,  at  the 
offices,  9,  Cloak  Lane,  Cannon  Street,  K.C.,  Mr.  Francis  M. 
Voiiles  presiding,  in  the  absence  of  Mr.  Follett  Holt  (chairman 
of  the  company),  who  is  abroad  on  urgent  work  of  National  im- 
portance. 

The  Secretary  (Mr.  E.  A.  Borel)  read  the  notice  convening, 
the  meeting. 

The  Chairman  said  that  the  delay  in  holding  the  meeting  was 
due  to  the  difficulties  of  communication  with  Para,  but  as  the 
results   of  the  financial  year,   1916-17,   fully  warranted  such   a 
course,  the  directors  decided  to  pay  further  interim  dividends  on 
both  classes  of  sh.ires,  without  waiting  for  the  mnch-delayed  re- 
port.    The  report  had  since  come  to  hand,  and  the  shareholders 
would  be  asked  to  confirm  these  payments  as  final  dividends  for 
the  year  under  review.     The  ordinary  dividend  of  7  per  cent, 
constituted  an  advance  of  i  per  cent,  over  last  year's  rate,  and 
this,  he  thought,  would  be  considered  satisfactory   in  existing 
circumstances.     He  had  been  a  director  of  the  company  from  its 
inception,    and  when  he  looked   back  on   their   early    struggles, 
when  they  could  only  pay  the  interest  on   the  debentures  and 
nothing  on  either  class  of  shares,  it  was   a  matter  of  especial 
gratification  to  him  to  see  the  sound  basis  on  which  the  com- 
pany was  now  established — a  result  which  reflected  the  greatest 
credit  on  the  local  management  and  on  their  London  managers, 
Messrs  J.   G.  White  and  Co.,  Ltd.     The  all-important  question 
of  Brazilian  exchange  had  on  the  whole  been  satisfactory.  From 
I2d  in  the  previous  year,  the  average  rate  of  exchange  for  their 
remittances  to  London  had  risen   to  i2T^d.  during    1917,    and 
there   were    no   indications   of   an    adverse    movement    at    the 
moment.     The  company's  business  showed  a  gratifying  develop- 
ment in  several  directions,    both   in  the  tramway  and   in   the 
lighting    department.     The   number   of    passengers   carried   on 
their  cars  was  well  in  excess  of  22,000,000,  the  sale  of  electric 
current  for  lighting  and  motive  power  was  10  per  cent,  higher 
than  in   1916,  and  the  net  receipts   in    local  currency,  both  of 
the  tramways  and  electricity  department,  constituted  a  record 
in   the  company's   history.     This    was    largely   due  to   further 
economy  in  operating  expenses   which  had  been  realised,  not- 
withstanding the  special  difficulties  incidental  to  the  war.     The 
company's  cash  position  was  satisfactory  in  the  circumstances. 
They    had   ;f2i;,ooo  invested   in    War    Loan    and    ^^20,000    in 
National  War  bonds.    There  were  abundant  proofs  that  the  com- 
pany's untiring   efforts   to    give    the   best   possible   services    to 
the  district  of  Para  were  appreciated  both  by  the  Government 
and  municipal  authorities,  and  by  the  community.     The  direc- 
tors had  reason  to  hope  that,  barring  unforeseen  developments, 
the  current  year's  results  would  be  on  a'  level  with  those  of  the 
period  under  review.     In  conclusion,  he  moved  the  adoption  of 
the  report  and  accounts,  and  the  approval  of  the  dividends,  as 
recommended. 

Mr.  Wm.  C.  Burton  seconded  the  resolution,  which  was  unani- 
mously carried. 


had  been  going  out.  It  was  true  that  the  company,  under  its 
concession,  was  only  strictly  obliged  to  deliver  Vaal  River 
water  in  Kimberlcy,  but  there  was  an  implied  obligation  that 
the  water  supplied  should  not  only  be  potable,  but  more  or  less 
free  from  impurities  in  the  form  of  mud  and  silt,  and  the 
board,  recognising  their  responsibility  in  this  respect  to  the 
inhabitants  of  Kimberley,  felt  that  it  was  incumbent  on  them 
to  take  all  reasonable  steps,  at  even  greatly  increased  cost,  to 
secured  the  desired  result. 
The  report  was  unanimously  adopted. 


KIMBERLEY    WATERWORKS    CO. 

The  thirty-eighth  annual  general  meeting  of  the  Kimberley 
Waterworks  Co.,  Ltd.,  was  held  on  Thursday  at  the  Cannon 
Street  Hotel,  Mr.  James  Jackson  (the  chairman)  presiding. 

The  Secretary  (Mr.  F.  W.  Archdeacon)  read  the  notice  and 
the  auditors'  report. 

The  Chairman  said  that  the  company  had  had,  on  the 
whole,  the  best  year  since  the  outbreak  of  the  war,  and  was 
able  to  report  steady  progress.  The  consumption  of  water 
showed  an  improvement  of  5^  million  gallons,  and  this  in  face 
of  a  much  heavier  rainfall  than  in  the  previous  year.  The 
resulting  revenue  from  sales  of  water,  partly  owing  to  the 
absence  of  discounts  allowed  in  1916,  was  more  than  ;^4,ooo 
higher  than  in  that  year.  Unfortunately,  the  exigencies  of 
the  times  hiid  forced  expenses  to  go  up,  so  that  the  available 
balance,  at  ;^2i,8o4,  was  only  ^1,223  more.  To  this  was  to 
be  added  an  improvement  of  over  ;i^3oo  in  interest  on  inve.st- 
ments.  Of  the  total  consumption  of  water,  by  far  the  larger 
portion  was  taken  by  the  towns,  and,  though  the  supply  to 
the  mines  was  an  increasing  proportion,  as  long  as  the  re- 
serves of  water  in  the  several  reservoirs  owned  by  De  Beers  re- 
mained so  abundant,  the  mines'  requirements  could  not  be  ex- 
pected to  approach  those  of  the  towns.  The  heavy  floods 
which  occurred  towards  the  end  of  the  year,  when  the  Vaal 
River  rose  to  41  ft.  8  ins.  above  zero  at  the  company's  pumping 
station — the  second  highest  flood  recorded  during  the  existence 
of  the  works — caused  much  damage  to  agricultural  holdings, 
but  the  company  scarcely  suffered  even  inconvenience  from  the 
flood  itself  directly,  though  indirectly  considerable  expense 
and  trouble  were  occasioned  by  the  long-continued  thick  con- 
dition of  the  water.  This  necessitated  extended  use  of  various 
precipitants  in  the  settling  tanks  at  the  river,  where,  by  a 
process  of  sedimentation,  a  fixed  standard  of  clearriess  in  the 
water  is  attained  before  it  is  pumped  to  Kimberley,  where  the 
proportion  used  for  domestic  purposes  can,  if  necessary,  be 
further  treated  in  the  filter  beds.  Owing  to  the  war,  the  most 
effective  precipitating  agent  formerly  in  use  first  rose  to  an 
exorbitant  price,  and  latterly  had  been  unobtainable  altogether. 
Others,  though"  still  procurable,  had  become  more  costly,  and 
extended  efforts  had  been  made,  under  high  expert  advice,  to 
utilise  comparatively  cheap  materials  obtainable  locally.  The 
manager  at  Kimberley  had  just  telegraphed  .stating  that  these 
experiments  had  been  a  complete  success,  and  the  board  had 
felt  justified  in  stopping  a  shipment  of  expensive  material  whicb 


Notes  on  Books. 

Les  Garanties  de  la  Paix.  Par  Vves  Guyot.  Frenuire  I'arlie: 
Les  Lefons  du  Passe.  (Paris :  Librairie  Felix  Alcan. 
I'rix  3  fr.  50  c,  plus  30  per  cent,  temporary  increase.) 
Adherents  to  the  idea  of  a  League  of  Nations  will  find  it 
worth  their  while  to  read  this  latest  book  by  M.  Vves  Guyot. 
It  is  a  continuation  of  his  interesting  monograph  on  "  The 
Causes  and  Consequences  of  the  War,"  of  which  an  English 
translation  has  been  published,  and  has  run  into  a  second 
edition.  The  object  of  this  second  volume  is  to  trace  succinctly 
the  diplomatic  history  of  Europe  in  regard  to  its  efforts  to 
find  a  sure  basis  for  peace  since  the  discomfiture  of  Napoleon 
Buonaparte.  He  goes  further  back  than  that,  indeed,  and  traces 
the  efforts  of  despots  and  statesmen  of  the  sixteenth  and 
seventeenth  centuries  to  organise  Europe  into  a  sort  of  com- 
munity of  dynastic  interests  dominated  by  the  most  ambitious 
despot  who,  for  the  moment,  was  on  the  top.  But  there  was 
always  a  sort  of  groundwork  idea  of  attaining  a  peace  so 
secure  that  it  could  not  be  broken — but  without  reference  to  the 
peoples  concerned. 

The  book  also  traces  the  development  of  Prussia  into  the 
latest  of  the  Powers  smitten  by  the  dream  of  peace  by  universal 
conquest,  and  many  sidelights  are  thrown  in  illustration  of  the 
illusory  and  often  hypocritical  character  of  our  diplomacy 
throughout  the  century.  In  regard  to  the  Ottoman  Empire,  for 
instance,  the  mistakes  France  and  ourselves  made  not  only  in 
the  attitude  towards  Russia,  but  in  the  readiness  with  which 
agreements  were  entered  into  with  Prussia  and  Austria  from 
motives  purely  self-seeking — often  agreements  devoid  of  any 
kind  of  morality  whatever— have  been  most  glaring  and 
disastrous.  Yet  even  in  these  blunders  there  is  traceable  a 
hankering  after  a  consortium  of  Western  Powers,  united  to  keep 
heads  of  States,  despots  for  the  most  part,  from  organising  their 
victim  peoples  to  be  ready  to  slay  each  other.  This  part  of  the 
book  might  well  be  read  as  complementary  to  the  valuable 
treatise  by  Dr.  Seton  Watson  on  "  The  Rise  of  Nationality  in  the 
Balkans."  His  is  an  unfinished  treatise,  breaking  off  as  it 
does  before  the  conclusion  of  the  second  Balkan  War,  but  it 
is  none  the  less  most  valuable  for  all  the  last  century  history 
of  Western  European  polity  in  that  part  of  the  world.  And 
M.  Guyot  goes  with  greater  detail  than  Dr.  Watson  into  some 
of  the  episodes  in  our  tortuous  and  often  blind  diplomacy. 
Neither  of  the  books  is  cheerful  reading  by  any  means,  and 
yet  a  hope  may  be  said  to  grow  out  of  this  study  of  manifesta- 
tions of  wrong-headedness,  calculated  selfishness,  dynastic 
projects  of  ambition,  and  so  on,  that  this  last  lesson  adminis- 
tered by  the  present  conflict  may  suflice  to  cure  mankind  of 
the  worship  of  dynasties,  of  "  Divine-right  "  monarchs.  above 
all,  of  the  man  with  arms  in  his  hands.  The  slayer  by  pro- 
fession must  be  brought  down  from  his  pedestal  and  deprived 
of  his  magic. 

But  what  of  the  "  guarantees  of  peace,"  the  subject  to  which 
this   volume   is   devoted?      It    is   only   an   introduction    to   the 
subject.     Another   volume  has   still    to   be   written    which   will 
presumably    set    forth    M.     Guyot's    conception    of    what    the 
guarantees  must  be.     So  far.  however,  his  ideas,  as  expressed 
in  the  concluding  chapter  of  this  volume,  point  to  the  elimina- 
tion of  all  forms  of  make-believe  and  hypocrisy  from  the  inter- 
course of  man   with  man  and  nation   with  nation.     Peace  will 
be  guaranteed  by  the  moral  progress  which  mankind  has  made, 
and  he  points  out,  for   instance,  that  for  centuries   Christians 
of  the  West,  Frenchmen  especially,  went  to  wage  war  in  Asia 
because  they  believed  in  Jesus,  and  regarded  as  enemies  the  men 
who   believed    in   Mahomet.      For   centuries   religion    was   the 
cause  of  wars  there  and  elsewhere.     That  time  is  now  passed. 
Religion    has    been    eliminated     as    a    cause    of    war    amongst 
Continental   peoples   as   a   result    of   intellectual   progress;   but 
dynastic  interests  remain,  and  economic  interests  have  to  some 
extent  taken  the  place  of  religion,  as  witness  this  very  war  we 
are  now  agonising  over.     And  we  are  not  sure  that  M..  Guyot 
has  got  hold  of  the  entire   truth  when  he   says  that  the  most 
solid    guarantee  of   peace  is   the   intellectual   capacity   of   men 
who  act  on  the  opinion  and  of  those  upon  whom  their  influence 
is    exercised.      Will    intellectual    clear-sightedness    and    reason 
suflice   to   woo    Germans    from    coveting    the   mineral   deposit* 
belonging    to  France   and    Belgium,   but   now   in    the   grip  of 
Prussia's  hosts?    We  doubt  it.     A  nobler  moral  force  is  wanted, 
something  beyond  the   material   interests  and   intellectual   pro- 
fessions of  the  more  enlightened  amongst  mankind.     Germany 
is    enlightened.     C»ermany  contains  many  men   to    whom   this 
war  is  abhorrent,   and  yet  Germany  is  p««ring  her  life-blood 
out  in  the  insane  endeavour  to  subdue  in  order  that  her  ruthless 
masters  may  exploit,   annex,   and  enslave.     We  are  persuaded 
that  one  result  of  the  terrific  chastisement  which   is  now  being 
administered  to  our  own  selfishness,  as  well  as  to  the  German, 
by  this  war  will  be  the  evolving  of  a  moral  force  through  the 
power  and  far-spread  infl.uence  of  which  the  creation  of  a  real 
I  cague  of  Nations  may  become  possible.     But  w-e  have  to  beat 
lown  and  subdue  the  enemy  first. 


424 


Zbc  investors'  IRcvtew* 


Ai'Kii,  27,  1918. 


INDI4N  RAILWAYS. 


UONTHLY   STATBMBKTS. 


Nahi. 


AiBam  BeoK*]       . . 
Bars! 

tenK*l&N.-W.  .. 
engal  Nagpar  . . 
Bombay,  Baroda  .. 
B  rma 

Delhi  Umballa       . . 
East  Indian,. 
Gt,  Indian  Penin.  .. 
Lucknow-Barellly.. 
Madras      and       S. 

Mahratta  .. 
Nlzam'sGd.  (Broadi 
,,        „     (Metre) 
Rohilkund  and 

Kumaon  ,. 
Sooth  Indian 


ORO88  TKAFKIC  FOR  WEIK, 

In.  or  deo. 


Week 
ending 


Amount 


Feb. 

SI 

«ar. 

1 

Keb. 

ifi 

Mar. 

2 

April 

M 

Kob. 

ai 

Ap;il 

•S 

,, 

30 

Fet. 

\l 

Mar. 

0 

Feb. 

9 

•1 

9 

» 

16 

,. 

0 

~is. — 

«,4>,<94 

10,200 

5.33.S90 

13,17,000 

lS,3),000 
3,64.430 

89,000 
34,76,000 
40,37,400 

61,959 

11,00,000 
'■41.527 

i|33t7<o 

51,218 
6,63,223 


on  last 

year. 


ORO8S  TRAFFIC  TO  DATF. 


Rs, 

+        6.645 

—  6,400 
+      61,507 

—  2,32,000 
4-  2,51,000 
+         7.612 

+      "4,234 

—  1,000 

—  3,19,300 
3.732 

3,604 

■49 

11.775 


10,740 
55.068 


AmoDBl 


Dublin  United 
Hastinffs  and  Dlst. . 
Isle  of  Thanet 
Lancashire  United.. 
Provincial    . . 
Yorks.  fWsl.  Rdnfj.) 


t  April  I,  t  October  i. 

TRAMWAY  AND  OMNIBUS.— HOME. 

7 


8.56,433 
1,22,56,027 


J, 03,767 
9,08,470 


Mar.  I 

„  18 

,,  l6 

17 

30 

Apr.  21 


Apr. 

Mar 


7.305 
1,093 
194 
2,665 
3,590 
2,158 


c 

1,364 

134 

55 
997 
813 
291 


c 

61,814 
10,521 

4,110 
40,363 
62,130 
38,040 


11,088 
840 

1,843 
12.143 
11,225 

8,666 


'  From  Oct.  1.  f  From  Jan.  1. 

TRAMWAY  AND  OMNIBUS— FOREIGN  AND  COLONIAL. 


Alabama  Power  . . 
Anglo-Argentine  .. 
Auckland  Electric. . 
Brazilian  Traction  . 
Brisbane  Eleo.  Inv. 
British  Columbia  .. 
B.A.  Lacroze 
Burmah  Electric  . . 
Calcutta 
Carthagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &  T 

Hongkong   ., 
La  Plata 

Lima 

Madras  Electric    .. 

Manila  Electric 

Mexico         .. 

Rangoon 

Singapore  Electric 

Toronto 

United  of  Monte  V 

Vera  Cruc   . . 

Winnipeg    , . 


Mar. 

i 

Apr. 

32 

f)ct. 

26 

Feb. 

1 

Mar. 

Feb 

% 

Mar. 

^^ 

b 

Apr. 

30 

Mar. 

b 

Feb. 

„ 

16 

Mar. 

b 

Apr. 

15c 

Aug. 

8 

Nov 

? 

Mar 

« 

Feb. 

5 

„ 

i 

Mar 

Feb. 

§ 

£ 

£ 

Ms. 

£ 

126,829 

+      30,143 

X 

138,829 

59.417 

+       5.792 

• 

879.953 

32,308 

+          880 

a 

92,118 

M3, 565 ,000 

—  M  320,000 

3 

M7,26i,coo 

35.530 

+        2,190 

3 

102,039 

•131.940 

+     •30,260 

7 

•  902,899 

42.647 

+         1,310 

Q 

346,421 

Rs.37,906 

+  Rs.  774 

185,428 

R3.73.744 

+  Rs.7,126 

♦ 

R81004,933 

5,316 

+       2,361 

* 

13,358 

12,972 

+         1,0;  6 

11 

•47.938 

818,149 

+       •5.635 

♦ 

•94.318 

5.347 

+            819 

S 

14.803 

42,106 

+         4,520 

1 

'27.555 

Rs.  40,805 

+  R6.  2,097 

* 

Rs.377,813 

65,467 

+         4.667 

8 

547.492 

•  215,256 

-•108,669 

♦ 

»3,l93,lo6 

.  5.955 

—           271 

♦ 

16,978 

•  13.537 

—      •1,292 

« 

•75,114 

•433.447 

-      •7,769 

2 

1911,109 

36,659 

+        4,680 

5 

173,333 

42,200  —        6,30c 

2 

84,300 

•71.403  -      •7,107 

3 

$130,195 

£ 

30,143 

6 1, 743 
7.832 
M626,ooo 
+         5.879 
+  •131,034 
+  6g 

4-  Rs.  991 
+  Rs.64,8l6 

+  3.198 

+  435 

—  •lOS 

+       ',867 

+  18,900 
fRs.35,66« 
+       70,625 

—  » 197,327 
r.5H 

•  5.447 

•908 

14.941 

19,300 

•  16,837 


iaSdays.       ♦  From  Jan.  i,      S  Nett.       a  From  luly 
FOREIGN   RAILWAYS. 


c  Two  weeks. 


Alcoyand  Gandia . . 
Antofagasta  (Chili) 
Arauco 

Argentine  N.B. 
Bilbao  R,  and  Caota 
Bolivar 
Brazil 

Brazil  Gt.  Southern 
B.  Ayrea  &  Pacific 
Do.  Central 
Do.Gt.South'n 
Do,       Western 
Central  Argentine. . 
C.Ur'g'ayofMts  V. 
Do.  East'nBx. 
Do.North'oEx, 
Do.  West'n  Ex 
Cordoba  Central  . 
Costa  Rica  .. 
Cuban  Central 
Dorada  Extension. 
Egyptian  Delta     . 
Entre  Rios  . . 
French  Sante  F<  . 
Gt.  South,  of  Spain 
Gt.West.  of  Brazil. 
Havana  Central    . . 
Inter,  of  C.  Amer... 
La  Guaira  and  Car 
Leopoldina  .. 
Midland  Uruguay .. 
Mogyana 

N.W.  of  Uruguay  .. 
Nitrate 

Paraguay  Central  . . 
Paullsta 

Peruvian  Corpn  . . 
Salvador 

State  of  Bahia  5.W. 
S.  Paulo  (Brazilian) 
Sorocabana.. 

Taltal 

United  of  Havana. 
West'n  of  Havana. 
Zafra  and  Hnelva. . 


Apl. 

Fek 
Apl. 
Mar. 

Jan. 
Nov. 
Apl. 
Mar. 
Apl. 


Ps. 


Mar.  1 

Apl.  2 
Mar. 

Feb.  s 

Apl.  a 
Jan. 

Apl.  1 

,,  : 

Fei).   i 

Mar. 

Apl.    : 

Mar. 

Dec. 

Mar. 

Apl. 

Dec. 
Mar. 
Apl. 
Mar. 
Apl. 
Jan. 
Mar. 
Apl. 

Feb. 


£ 

8,000 
49,055 
12.500 
9,boo 
4.486 
11,000 

M5,302,0O0 

Ml3.44,050 

161,000 

38,675 

141,000 

85,000 
180,000 
19.009 

5.636 

3.733 

2,083 
41,000 

3,690 
35,419 

8,300 

6,519 

23,500 

147,  "" 
31.236 

16,000 
10,911 

24,247 
5.500 

32,''98 
14.894 
M2,3t2,000 

•23,500 

33,117 

2,770 

M3, 461,000 
81,119,530 

«4,295 
M47,ooo 
24.946 
Ml, 953 ,000 
30,392 
84.337 
12,917 
11.570 


Ps. 


£ 

3,500 
8,080 
3,500 
400 
1,341 
6,101 
+  M1070499 
M850 
78,000 
14.004 

34,000 

44,000 

93.500 

5,080 

338 

337 

383 

11,540 

601 

7,378 

400 

1.253 

9,000 

55.713 

— Ps55,6i4 

+       3.700 

+       3,841 

—  9.386 

—  4,000 
+  13.397 
+  156 
+  M  534,708 

—  i5.258 
+  '1I47 
+  190 
+  M  732,637 
+  Si02,530 
+     •2,357 

—  M30,000 

+  3,958 
+  M  199.895 
+  119 
+  18,309 
+  3,910 
+       ',610 


„  £ 

Ps.  145,900 

659,180 

26,500 

353,600 

13,548 

100,775 

M5, 202, 000 

M47i,527 

3,744.000 

253,258 

4.535.705 

2,116,000 

4,634,300 

773.325 

211,357 

136,618 

91.326 

1.375.850 

104,620 

845.958 

23,900 

364,360 

653.900 

147.488 

Ps.  448,144 

293,800 

371,020 

47.671 

19.350 

510,957 
119,814 

M  34041,000 

•237,090 

205,843 

120,030 

M34ii5,ooo 

59,322,560 

•80,  " 


HKTT  SaRHIIiai  FOR   HODTB. 


MODtb. 


-       .387 

M237,ooo 

514.471 

Mi. 952 ,000 

334,678 

3,367.579 

371.693 

33.493 


*  Months,  t  From  Jan.  I.  t  From  July  i.    c  Nett.    i  13  days,    a  todays. 
COLONIAL  RAILWAYS. 


AtoWson  T.  a  S.  F« 
Atlantic  Coast  Line 
Baltimore  &  Ohio  .. 
Canadian  Northern 
Canadian  Pacific  . . 
Chesapeake  &  Ohio 
Chicago*  N.W.  .. 
Chicago  Burl.  &  Q. 
Chicago  G.W. 
Chicago  Mil,  &S.P 
Chicago,  Rock  I.&P 
Colorado  ^Southern 

Cuba 

Delaware  ft  Hnd.  . . 
Denver  &  Rio  Gran 

Brie 

Gr.Tr.  Main  Line.. 
Grand  Trunk  Westn 
Detroit  Q.H.  ft  Mil. 
Gt.  Northern 
Illinois  Central  , . 
Kansas  City  Soutbn. 
Lehigh  Valley 
Louisville  Bt  Nashvl. 
Minn.S.P.  (Soo)i  .. 
Miss.  K.  6c  Texas  . . 
Missouri  Pacific  .. 
New  York  Cent.&H. 
N.Y.N.  Haven  &H. 
NewYorkOnt.&  W 
Norfolk  ft  Western. 
Northern  Pacific 
Pennsylvania    East 

and  West  Lines 
Phil,  and  Reading  . . 

Reading 

St.  Louis  &  San  F. 
Seaboard  Air  Line. 
Southern     .. 
Southern  Pacific   . . 
Union  Pacific 
Wabash 


£ 

—Ps. 19,970 

+       81,315 

+        4,500 

+      64,998 

+  907 

+       13,668 

4- M 1070499 

M51.057 

309,000 

35.451 

110,549 

37.0OO 

353,100 

330,139 
7.760 

34.903 

16,633 
47.330 
89,97' 

>6i,668 

2.700 

63,069 

152,300 

55.713 

— Psioo  996 

+     83,750 

4-       78,403 

—  17.585 

—  8,250 
■(•  147.847 
4-  4,366 
+  M8i3,43a 
4-  •16,015 
4-  14.301 
4-  14.390 
+  M3188775 
4-  S1020168 

—  •5.670 

—  M53.000 
4-  167,389 
4- M  199,895 
+  57.033 
4-  593,686 
4-  '03,998 
4-  3,392 


£ 

i     1 

£ 

r 

Baica 

Dec.  'c 

49.448 

— 

1.841    3 

173.777  + 

6,533 

Canadian  Northern 

Apr.  21 

•929,500 

4  »'63,900 

•3J.475.lOO    4- 

•995.800 

Canadian  Pacific  . . 

.,    '21 

$3,016,000 

+  »308,ooo 

♦41,564,000 

4- $2104,000 

Or.  Trk.  Main  Line 

»     31 

311,953 

+ 

34.913 

3.803,326 
520,634 

4- 

36,670 

Gr.Trk.  Western.. 

.,   21 

44.610 

4- 

3.473 

— 

3,393 

Detroit  G.  H,&M. 

..    <4 

13,678 

3,096 

173,646 

— 

16,885 

GrTkPac  Prairie  Sc 

..    14 

38.016 

4- 

7,208 

363,291 

+ 

107,760 

Mashonaland 

Nov.  • 

56,698 

_ 

1,486 

1 

56,698 

— 

1,486 

Mid.  of  Westn.  Aos. 

Feb.   • 

8,617 

— 

88 

8 

61,134 

4- 

3.915 

New  Cape  Central.. 

Mar.  3 

3,524 

4- 

341 

f 

31,157 

+ 

3.330 

Rhodesia 

Dec.  *c 

_     7J.220 

— 

3,472 

-3 

369,403 

4- 

11,935 

Jan. 

Fct. 

Jan. 

Nov. 
Jan. 


Dec 
Jan. 


Dec. 
Feb. 


Dec. 
Jan. 
Feb. 
Jan. 

Dec. 
Jan. 
Nov. 
Jan. 
Dec. 
Jan. 


Feb 
Dec. 


Jan. 


Amonot. 


Dols. 
l,9i2,oro 
1,075,000 
1,852,000 
6  480,400 

591,000 

6  81,000 
b  785,000 
1 ,642,000 

b  ro,ooo 

b  628,000 

80,000 

454.171 

3.600 

415,000 

507,000 

b  341,700 

b  ^40,150 

6^13,100 

1.165,000 

b  477,000 

455.000 

6986,000 

623.000 

357.000 

135,000 

1,690,000 

6  1,149,000 

1,182,000 

b  7,000 

233,000 

803,000 

5,940,000 
6  i,299,ofo 

131,541 

1,325.000 

673,000 

1,191,000 


b  316,000 


In.  or  Dec 
on  last  year 

"Doia; 
-1,688,900 

313,000 

—  1,165,000 

—  588,600 

-1,395,000 
—1,334,000 
797,000 
,031,000 

—  323,000 
—3,290,000 
—1,288.000 

—  11.000 
\-    245,735 

—  720,000 

—  232,OCO 
+  1,848,000 

—  £219,400 

—  f27,0OO 

—  £3.900 
— 1,401.000 
—3,034,000 
4-      59.000 

1,346,000 
— 1,26»,000 

—  297,000 

—  380,000 
4-  321,000 
—4,776,000 

—  870,100 

—  135,000 
—1,467,000 
-1,434,000 

—1 1072000 
-1,898,000 
t-      40,038 

—  244.000 

—  206,000 

—  833,000 

—  536,000 
4-  72,000 
—1,026,000 


KETT  EARHIHOS  TO  DATI. 


In.  or  Dec. 
on  last  year 


faS,  100  —      £6750 

33,987,000  —  6,179,000 

18,606,000  14-  1,847.000 

834,000 1-        10,000 

9,403,000  I —  2,876,000 

17,761,000  I—  3,090,000 

,331,000  1—3,648,000 


8,215,000 
9,425,000 
53,118,000 
33,815.000 
3,328,000 
19,654,00c 
27,423,000 

5,940,000 
14.877.oco 
249,000 
0,576,000 
8,628,000 
15.944.000 
59,785,000 
42,942,000 
12,003,000 


4-  2.467,000 

4-  1,920,003 

—12063.000 

3,345,000 

97,000 

—  3,808,000 
4,xio,ooo 

—  11073.000 
_  6,626,ox> 
+  80,230 
4.     632.000 

—  34,000 
+   1,255.000 

+  7.953.^00 

—  3,115,000 

—  844,000 


5  Includes  Wisconsin  Central.    ♦  Gross  earnings,    t  Surplus,    ii  Deficit. 


Answers  to  Coprespondents. 

•,*  A  Key  to  these  Answers  will  be  posted  early 
each  week  for  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  tor  bIm  months,  or 
Ss.  9d.  tor  three  months. 

Deposits  against  future  queries  may  be  lodQed 
with  the  Publisher. 
J     A —Perhaps,  as  the  demand  may   grow  after  the  war;  but 

the  company  has  a  nfean  record,  and  the  yield  at  the  price  is 

^°Peter.— PossiHy;    but   the   life    is  short    and   the    chances  of 
increased    profit  small.  . 

S.  E.  L.— Cannot  say.  Much  will  depend  npoti  the  success 
and   the  terms  of   the  proposed  combine.  _ 

In  Doubt.— Not  satisfactorily  in  a  reply  here,  beyond  saying 
that  we  should  not  care  to  buy  even  the  very  best  of  their 
shares  at  anything  of  a  premitSm   jusit  now. 

Sapper.— The  accounts  are  just  out,  and  show  a  satisfactory 
result,  although  there  is  no  sensational  Increase.  The  reserve 
is  to  be  capitajised.  No  objection  to  a  purchase  if  you  arr 
prepared  to  hold  for  a  time  and  content  with  a  modest  profit 
should  they  rise.  . 

C  L  D  — (iT  We  cannot  ad^•lse  you  to  sell  now,  although  the 
immediate  outlook  is  not  very  encouraging.  Only  cheaper 
labour  and  reduction  tn  cdsts  wiU  help  them  up  again,  and  these 
are  not  in  sight.  (2)  As  a  speculator,  the  company  ha^ 
prospects.     Only  buy   if  you  are  prepared  to  wait. 

P  M  C— Why  not  sell  half  and  keep  the  rest?  The  market 
may  go  higher,  but  the  yield  is  now  nothing  out  of  the  wav. 

j5  X  M  —Yes.  We  think  it  can  be  arranged  in  his  own 
name 'through  the  Post  OfRce  Savings  Bank.  If  not,  then  you 
should  inscribe  in  your  own  name. 

\V  H  A.— Income-tax  is  not  deducted  on  the  proht ;  hencf 
the  limitation.  Why  not  take  War  Bonds  5  per  cent..  1928. 
redeemable  at   105.  ,      _   ,  ,,  . 

R    M.   F.— We  do  not  think  you  shouEl  follow  them   up. 
s'   s    B.— (1)  The  company  has  had  a  fine  year,  and   seems 
likely   to  continue   prosperous.     Quite   a    fair  purchase.     (2)    A 
little  of  bofli  might  be  bought,  but  we  do  not  expect  to  see  any 
sensational  rise.     _^__^_^_^_^_______^ 


BOOKS    RECEIVED. 


4  Mobths.         t  July  I.         t  Jan.  I.       c  From  Oct.  i 


Great  Britain,  PaUstine,  and  the  Jews.  A  Survey  of  Chris- 
tian Opinion.  The  Zionist  Organisation  :  London  Bureau,  35, 
Empire  House.   175,  Piccadilly,  W.   1.     1918.     Price  id. 

German  Ambassador's  Revelations.   Mv  Mission  to  London,  by 
Prince    Lichnowsky.       Preface    by    Professor    Gilbert    Murray. 
Paper  covers,  6d.  nett.      Publishers,  Cassell  and  Co.,  Ltd 
Belle  Sauvage,  London,  E.C.  4. 

Zionism  and  the  Jewish  Problem.  By  Leon  Simoo. 
by  the  Zionist  Organisation,  London  Bureau,  175, 
London,  W.  1.     Price  2d.,  post  free. 


La 


Published 
Piccadilly, 


Printed  by  the  Si.  Clements  Press,  Ltd.,  Portuga'  Street,  Kingsway,  London,  W.C,  (or  the  Proprietor  of  The  Investors'  Review,  and  Published 
by  The  Peopriiior,  Norfolk  House,  Nortolk  Street,  Strand,  W,C.  a,— April  «7.  '9'8.  I"  *♦*• 


tTbe 


Jnvestote'  1Re\>(ew 


FOUNDED    BY    A.    J.     WILSON,    FEBRUARY,    1392. 


Vol.  XLI.-No.  1,061.]      [H«|iit--.V'] 

HD1D  acDTDD  L     no»»P»P»r.     J 


NBW  BERIES. 


SATURDAY,  MAY  4,  1918. 


[Price  6d. 


CONTENTS. 


Passing  Events :— National  War  Bond  Sales  —  Revenue  — 
Labour  Unrest  —  State  Control  of  Land  —  Lord  Rhondda 
—  Eighth  German  Loan  —  Caam^no  Tenguel  Estate  — 
Union  Bank  of  Scotland  —  Ionian  Bank  —  Raising  the 
Age  for  Military  Service  —  Eagle  Oil  Transport  — 
Lochaber  Scheme  Quashed  —  British  Westinghouse  — 
Financial  Times  —  John  I.  Thornycroft  —  Army  and 
Navy  Co-operative  Society  —  British  Columbia  Electric 
Railway  —  Meux  Brewery  —  Lace  Proprietary  Mines 
(pp.  427-32). 

Leading  Articles : — Trade  and  Finance  After  the  War  —  Are 
Treasury  Bills  Liable  to  Income-tax?  —  Profits  and  Profit- 
Sharing  in  Italy  —  The  Canadian  Budget  —  By-the-Way 
War  Notes  (pp.  432-5  and  440-1). 

Money  and  Credit  Notes : — Unaltered  Money  Rates  —  Bank 
Return  —  Income  Tax  on  5  per  cent.  War  Loan  — 
British  Trade  Corporation's  First  Baby  —  Swiss  Credit  to 
Great  Britain  —  Foreign  Exchange  Movements  —  Silver 
(pp.  436-8). 

The  Week's  Stock  Markets  (pp.  438-9). 

London  Produce  Markets  (pp.  439-40). 

The  Week  in  Mines  (p    441). 

Public  Income  and  Expenditure  (p.  442). 

Books   Received  (p.  442). 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Otlice  i  15,  Gracechurch  Street,  London,  E.C.  3. 

Capital  Authorised         £1,500,000 

Opital  Issued      1,125,000 

Capital  Paid  Up 5«,500 

Reserve  Fund  (Undivided  Profits)  708,432 

Branches t 

INDIA.   BURMAH,   CEYLON.    STRAITS    SETTLEMENTS 

CHINA.    AND    PORT    LOUIS.    MAURITIUS. 

The  Bank  buys  and  sells  Bills  of  Exchange,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  conneotion  with 

the  East,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  s  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  ouprant  aooounts  interest  is  allowed  at  >  per  cent,  per  annum  on 

daily  balances. 


ROYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  1727. 

PAID-UP  CAPITAL £2,000,000 

REST  AND  UNDIYIDBD   PROFITS  914,968 

DEPOSITS 26,177,865 

Head    Office:    ST.    ANDREW   SQUARE,  EDINBURGH. 
Cashier  and  General  Manager,  A.  K.  Wright.        Secretary,  J.  B.  Adshead. 

London    Office:    3,    BISHOPSGATE,  E.C.  2. 
WiLLiAU  Wallace,  Manager.  Alkx.  Dick,  Deputy-Manager. 

Glasgow  Office:     EXCHANGE  SQUARE. 
A.  Dennistoun,  Agent.  Thomas  Lillie,  Sub-Agent, 

167  Branches  throughout  Scotland. 
Banking  Business  of  every  description  transacted.  Accounts  opened  and  .Agency 
business  undertaken  for  Foreign  dnd  Colonial  Banks  and  otht  r  financial  estab- 
lishments. Drafts,  Circular  Notes,  and  Letters  of  Credit  issued  —  available 
throughout  the  world.  Cable  transfers  are  also  made.  Deposits  reoeiredat 
interest  repayable  at  call  or  at  notice.    Correspondence  invited. 


Mining  News : — Rhodesian  Mineral  Output  —  Crown  Mines  — 
Village  Deep  —  City  Deep  —  Anglo-French  Exploration  — 
Mexico  Mines  of  EI  Oro  —  Rand  Mines  —  Aramayo 
Francke —  Balaghat  (pp.  441-2). 

Insurance  News  : — Union  —  Yorkshire  —  London  Guarantee  — 
Scottish  Union  —  National  Benefit  —  New  South  Wales 
Results  (p.  443). 

Tea,  Oil,  and  Rubber: — Latest  Statistics  —  Golden  Hope 
Rubber  Estate  —  Shelford  Rubber  Estate  —  Merton 
Rubber  Syndicate  (p.  444). 

Company  Meetings: —  Baldwins  —  The  Union  Bank  of 
Scotland  —  Goldsmiths  and  Silversmiths  Co.  —  General 
Investors  and  Trustees  (pp.  446-7). 

What  Balance  Sheets  Tell : — La  Guaira  and  Caracas  Railway 
Co.  —  Wm.  Dixon  —  Kimberley  Water  Works  Co.  — 
Consolidated  Trust  (p.  447). 

Dividends  Announced  (p.  443). 

Company  Results  in  Brief  (p.  444). 

American  Business  Notes  (p.  444). 

Oilfields  Production  (p.  444). 

Answers  to  Correspondents  (p.  445). 

Letters  to  the  Editor  (p.  445). 

Notes  on  Books  (p.  445). 

Traffic  Returns  (p.  448). 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the   Imperial 
Japanese  Government,  1899. 

HEAD  OFFICE      -      -     TAIPEH,   FORMOSA. 

Amoy,  Batavia,  Bombay,  Canton,  Foochow,  Hankow,  Hongkongi 
Kuikiang,  Kobe,  New  Yoik,  Osaka,  Shanghai,  Singapore,  Swatow, 
Soerabaya,  Tokyo,  and  every  important  city  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  S8,  OLD  BROAD  ST.,  E.C.  2. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1880. 

Subscribed  Capital     ~T.       ..       ..    Yen  48,000,000 

Capital  Paid  Up Yen  42,000,000 

Reserve  Fund         ,.        ..  ..    Yen  22,100,000 

Head  Office:  YOKOHAMA. 

Branches  and  Agencies  at 
Bombay.  Honolulu.  Newchwang.  Shimonoseki. 

Calcutta.  Hong  Kong.  New  York.  Singapore. 

Changchun.  Kobe.  Osaka.  Souraoaya. 

Dairen  (Dalny).  Los  Angelei.  Peking.  Sydney. 

Fengticn  (Mukden).       Lyons,  Rangoon.  Tientsiu. 

Hankow.  Manila  San  Francisco.  Tokyo. 

Harbin.  Nagasaki.  Seattle.  Tsinanfu. 

Shanghai.  Tsingtau. 

The  Bank  buys  and  receiYCC  for  collection  Bills  of  Exchange,  issues  DraUa 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  sisswhere, 
and  transacts  General  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  application. 
London  Offiee:  7i  BISHOPSGATE.  E.C.  a. 

K.  TATSUHl,  Manager. 


HONGKONG   AND    SHANGHAI    BANKING    CORPORATION. 

Capital  (all  paid  up) $15,000,000 

Btartlng  Reurve,  tield  in  London  at  exeliange  of  2s.  per  $  =  41,100,000  $15,000,000 

Silver  Reserve $19,HO,000    «34,{00,000 

Reserve  Liability  of  Proprietors tlS,000,000 

HEAD    OFFICe-HONGKONQ.    Chief  Manager-N.    J.    STABB. 
BRANCHES    AND    AGENCIES :  — Amoy,    Bangkok,  Batavia,  Bombay,  CaloutU,  Canton,  Colombo,  Foochow,  Hankow,  Harbin,   Hongkew    (Shanghai, 
Ipoh,  lohore,   Kobe  (Hlogo),    Kuala   Lumpur,    London,   Lyons,    Malacca,   Manila,  Nagasaki,  New   York,   Peking,    Penang,  Rangoon,  Saigon,  San   Franeifcv 
Shanghai,  Singapore,  Sourat>aya,  Tientsin,  Tsingtao,  Yloilo,  Yokohama. 

LONDON  COMMITTEE  :  .,„  „ 

HENRY  KESWICK,  Esq.,  M.P.  |  W.\l.  GAIR  RATHBONE,  Esq,  |  J.  R.  M.  SMITH,  Esq.  |  A.  M.  TOWNSHND,  Esq. 

SIR  CHARLES   ADDIS,  \  „,„,.»■.  in  T.„nHon  JO"N  MicLENNAN,  Sub-Manager. 

GucKMVRCH  Stumt,  loMOOi.,  E.C.  3.  H.  D.  C.  JONES,  }  Managers  in  London.  ^   ^  BLACKIE,  Acconntanf. 


426 


Zbc  Jnvestore'  tfteview. 


May  4,  191S. 


LONDON  COUNTY  WESTMINSTER  &  PARR'S  BANK,  Ltd. 

EBTABIiISHKD    IH    1888. 

AUTHORISED  GAPlf  AL  £30,000,000,  in  1,500,000  Shares  of  £20  each. 

Reserve  -        -        -        £6,800,000. 

Chairmah:  WALTER  LEAF, Esq.    DeputyChairmen:  Sir  MONTAGU  TURNER,  R.  HUGH  TENNANT.  Esq. 

HEAD    OFFICE  :     41,    LOTHBURY,    E.G.  2. 

Joint  General  Managers :     F.  J.   BARTHORPE.    J.  W.  BUCKHURST.    J.  C.   ROBERTSON. 

Foreign   Branch  Office :    82,  Cornhill,  E.G.  3. 

The  Bank  is  represented  by  Branches  or  Agents  in  all  the  f-rincipalcities  and  towns  of  the  United  Kingdom  and  has  Correspondents  throughout  the  World. 

Spanish  Branches  :— Barcelona :  Paseo  de  Gracia  8  &  10.    Madrid  :    Calle  de  Alcala  43. 

Affiliated  in  France  :    London  Gounty  and  Westminster  Bank  (Paris)  Limited. 
Paris  :  22,  Place  Vendome.       Bordeaux  ;    22  &  24,  Cours  de  I'lntendance. 

Affiliated  in  Ireland :    Ulster  Bank  Limited. 

All  Cheques  on  the  Ulster  Bank  will  be  collected  for  Customers  of  this  Bank,  free  of  Commission. 
EXECUTOR    AND    TRUSTEE    DUTIES    UNDERTAKEN. 


ENGLISH,    SCOTTISH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

XXesta  Oflloe— 38g  I.ioxn1>a,x>dl  Stvee^i  B.C.  3. 

Subscribed  Capital £1,078,875    o    0 

Paid-up  Capital 539,43710    0 

Further  Liability  01  Proprietors     ..        ..  539,437  10    0 

Reserve  Fund     . ,        500,000    0    0 

LETTERS  OF  CREDIT  and  DRAFTS  on  the  Branches  and  Agencies  oi 
the  Bank  in  Australia  can  be  obtained  at  the  Head  Office,  or  throi.gh  the  Agents 
of  the  Bank,  in  the  chief  Provincial  towns  throughout  the  United  Kingdom. 
REMITTANCES  made  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOTIATED  or  forwarded  for  COLLECTION. 
BANKING  and  BXCHANGB  Easiness  of  every  description  transacted  with 
Australia. 

E.  M.  lANION,  Manager. 

THE   BANK  OF  ADELAIDE. 

(Incorporated  by  Act  of  Parliament,  1865.) 
AutherlMd  Capital        -   £1,000,000.  Subscribed  Capital    •   -   M25.000 

Paid-up  Capital        3^500.000 

Reserve  Fund  , ,        , ,        510,000 

]^  1,040,000 

Uncalled  Capital , 123,000 

Reserve  Liability  of  Shareholders       625,000 

,^1,790,000 

London  Ofl5ce— 11,  Leadenhall  Street,  E.C.  3. 

BILLS  on  Australasia  purchased  or  collected. 

DRAFTS  issued  and  REMITTANCES  cabled. 

DEPOSITS  received  for  fixed  periods  at  r  tes  to  be  ascertained  on  application. 

PERCY  ARNOLD.  Manager. 

THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 


Head  Offic«~7r,  Old  Broad  Street,  E.C. 


Subscribed  Capital         

Paid  up  Capital 

Reserve  Fund  and  Undivided  Profltt 
Reserve  Liability  of  Proprietors 


ei,276.747 
669.685 
375, 680  11 
606,962  10 


10 
O 


REMITTANCES  made  by  CABLE. 

DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 

Branches  and  Agents. 
BILLS  on  Australasia  NEGOTIATED  or  sent  for  collection. 
DEPOSITS  RECEIVED  for  periods  and  at  rates  which  may  be  aseertainad 

on  application,  and   Banking   Business   of    every  desonpticn    eondu&ted 

with  .\  jBtralia. 

The  union  BANK  of  AUSTRALIA 

BSTABLISHBD  1837.  LIMITED.  INCORPORATED  2880. 

Authorised  and  Issued  Capital,  ^6,000,000. 

Paid-up  Capital,  £2,000,000;  Reserve  Fund,  £2,000,000;  toeetbet   £4,000,000 

Reserve  LiabHlty  of  Proprietors ■. 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OPFIOK   -        -        -        71.  CORNHILL,  LONDON,   E.<7.  3. 

DRAFTS  are  f^ranted  on  the  Bank's  Branches  throughout  the  Austraiun 
States  and  Dominiin  of  New  Zealand. 

TELEGRAPH  IC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection 

Deposits  are  received  for  fited  periods  on  terms  which  naay  be  ascertained 
on  application. 

THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 
Paid-up  Capital    ..    £280,000    0    0     25.oaoSharesof  £10  each. 
lUierv*  Fund  . .    . .  £700,000    0    0  I  Reservt  Prodts    . .  £19,S3S 

Reiervea  Liat>illtv  of  Shareholders  £2M.O00. 

Umfts  issued.  Kemlttjinces  cabled.  Bills  negotiated   or  collected.     Deposits 

reoeived  tor  fixi'd  periods;  at  rates  to  oe  ascertained  on  application,  and  all 

baaklng  and  exchange  business  connected  with  Western  Australia  conducted 

brough  tiie  London  Attents.  Tht  Bank  of  Adelaide,  11.  Leadenhall  St.,  B.0. 3. 


BANK  OF  NEW  SOUTH  WALES 

Established  1S!7. 

Paid  up  Capital £3,904,860 

Reserve  Fund     2,876,000 

Reserve    Liability   of 

Proprietors     3,904,860 

iBTb,684,720 

Head  Office :  SYDNEY,  NEW  SOUTH  WALES. 
London  Directors : 

Sir  Fredekick   Green,  Chairman. 
H.  L.  M.Tritton,  Esq.  Walter  S.  M.  Burns,  Esq. 

David  George,  Manager.  J.  S.  Campbell,  Secretary. 

Halkerstone  Meldp.uk,  David  Geddh, 

Assiaani  Manager.  Accountant. 

The  Bank  has  S31  Branohei  and  Agencies  in  the  Australian  States, 
New  Zealand,  Fiji,  Papua  (New  Guinea),  and  London,  and  Agents  and 
Correspondents  all  over  the  World,  on  whom  the  London  Office  grants 
Circular  Letters  of  Credit  and  Circular  Notes.  Also  issues  Drafts  on 
demand.  Makes  Mail  and  Cable  Transfers.  Negotiates  and  Collects 
Bills  of  Exchange.  Receives  Deposits  lor  Fixed  Periods  on  terms 
which  may  be  known  on  application,  and  transacts  every  description  of 
Australian  Banking  business. 

London  Office:  29,  THRBADNEEDI.H  STREET,  E.C.  2. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  186a. 

Authorised  Capital  £4.000  000 

Paid-up  Capital 1,800,000 

Reserve  Fund   2.000.000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario.  Mendoza,  Concordia,  Bahia 
Blanca,  Cordoba.  Tucumlm,  Parank,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires,,  Boca  (Buenoi  Aires),  Calle  Sania  Ft  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires)  URUGUAY.— Niontevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (AgencO,  Salto 
(Agency).  BRAZIL  —  Rio  de  Janeiro.  Sao  Paulo,  Santos,  Per- 
nambuco.  Para,  Bahia,  Victoria.  Curityba,  Manios  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  HaKvy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued     Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  a. 


BANK    OF    NEW    ZEALAND. 

(Incorporated  July  7gth,  1S61.) 
BANKERS  TO  THE  NEW  ZEALAND  OOVERNMENT, 
London  Office:  i,  Queen  Victoria  Street,  London,  E.C.  4. 

AUTHORISED  CAPITAL        £5,500,000 

SUBSCRIBED  CAPITAL. 

Four  per  Cent.  Guaranteed  Stock f5i9.9M 

"A"   Preference  Shares  issued  to  New  Zealand  Government        ..       300.000 
B  "  Preference  Shares  issued  to  New  Zealand  Government         . .       250,000 

Ordinary  Shares ,_lw^ooo 

f2.77g.gm 

Reserve  Fund  and  Undivided  Profits .£2,246,595 

Negotiates  and  collects  Bills  of  Exchange. 

Grants  drafts  on  its  Offices  in  New  Zealand,  Australia,  Fiji  and  Samoa.     Re- 
mi.tanoe.  made  by  telegraphic  transfer.  ^j^xANDER  KAY,  MM»«.r. 


tCbe  Jnveetors'  1Rcview> 


Vol.  XLI.— No.  i,o6i 

New  Series. 


SATURDAY,  MAY  4    1918. 


("'if.';'.T.p.V.')  Price  (id. 


PUBLISHER'S    NOTICES 

tLbe  investors'  IReVieW  is  a  subscription  Joumal,  and  wUl 
be  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning 
on  the  following  terms  : — 

One  Year,  £1  5s.  Od.    Six  Months,  I2s.  6d.    Three  Months,  68.  6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year  £1  8s.  Od.    Six  Months,  14s.  Od.    Three  Months,  78.  Od 

Short  of  Three  months  the  Price  is  6Jd;  per  Copy  Inland,  and 

7d.  Abroad,  Post  Free. 

Cloth  cases  for  binding  the  half  Yearly  Volumes  price  2s.  6d., 

postage 6d. extra.     BoundVoluraes  17s.  6d.,  or  18s.  6d.  postfree. 

Cheques  and  P.O.  Drafts  should  be  made  payable  to 

"Investors'  Review," 

Norfolk  House,  Norfolk  Street, 
London,  W.C. 


Telephone  No. : 
Gerrard  9132. 


Telegraphic    Address ; 
"  Unveiling,  London." 


Tbe  Editor  cannot  undertake  to  return  rejected  com- 
munications. 

Letters  from  correspondents  must.  In  every  case  be 
authenticated  by  the  name  and  address  of  tbe  writer. 

Tbe  Editor  desires  It  to  be  understood  that  a  charge  Is 
made  for  the  Insertion  of  reports  under  the  heading  of 
Company  Meetings,  and  he  cannot  accept  responsibility 
for  statements  made  therein. 


JiNSWERS  TO  QUERIES. 

One    Reply    to    One    Question  — One    Shilling.      Any 

number  of  questons  may  be  put  and  will  be  answered  at  the  rata 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  kept,  as  securities  cannot  be  named  with  comments  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issu* 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea,  per  annum  paid  in  advance,  a 
Key  to  the  previous  week's  replies  will  be  sent  early  in  tht 
following  week. 

Deposits  of  ' '  Query  Money  ' '  may  be  made  in  advance,  and  wil( 
be  acknowledged  in  the  "Answers"  column.  Notice  o( 
exhaustion  will  also  be  given  there. 

Telegrams  advising  about  new  securities  cost  Half-a> 
Cr>Own  each,  plus  cost  of  the  telegram. 

Private  letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
Shillings)  but  for  this  three  questions  will  be  answered  if 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Half-a-Crown  per  question. 

Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter. on  terms  varying  according  to  the  time 
taken. 

Groups  o'  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guineai  each  list  different. 


Passing    Events. 

More  and  more  disappointing  grow  the  proceeds  of 
the  National  War  Bond  campaign.  It  was  laid  down 
by  the  Treasury  and  advertised  abundantly  that  a 
minimum  average  of  ^"25,000,000  a  week  was  necessary 
if  we  were  to  carry  on  the  war  without  inconvenience, 
not  to  say  embarrassment,  but  last  week  the  total  re- 
ceived by  the  new  Bank  of  England  issue  of  National 
War  Bonds  was  ;^i4,3o6,756.  That  was  the  amount 
applied  for  by  9,946  applicants,  which  was  2,120  fewer 
than  the  number  of  the  preceding  week.  The  money 
also  is  ;^2, 129,000  less,  and  the  total  thus  far  provided 
by  National  War  Bonds  is  even  now  only  ^,"670,141,000. 
Add  the  proceeds  of  the  Post  Office  issue,  which  is 
given  for  the  previous  week  ended  April  20,  and  we  are 
not  much  better  off.  There  were  35,400  applicants  in 
that  week,  or  _;^36,86o  less  in  cash,  at  ;^928,720.  Add 
these  to  the  previous  figures  and  we  get  1,093,866 
applications  through  the  Post  Office,  resulting  in 
;^"27, 1 77,000  in  money.  Thus  the  total  product  of 
National  War  Bond  sales  in  all  forms  up  to  the  middle 
of  last  month  was  ;^697, 3 18,000,  and  if  it  had  been 
twice  as  much  it  would  not  have  been  a  penny  more  than 
the  market  required.  The  War  Savings  Certificates 
also  again  begin  to  diminish  in  fertility,  and  the  sales 
in  the  week  ended  .\pril  20  came  down  to  just  under 
3,222,000,  making  the  aggregate  number  of  certificates 
sold  to  that  date  186,365,405,  which  represents 
;^" 1 44, 433, 000  in  money,  but  of  that  total  only  about 
;^2,4oo,ooo  came  in  in  the  week  named.  Now  this 
simply  will  not  do,  and  we  hope  the  Government  will 
not  shilly-shally  and  mumble  or  snivel  about  patriotic 
effort  and  all  that  sort  of  thing  until  it  is  too  late, 
because  to  be  too  late  in  making  financial  arrangements 
may  be  almost  as  fatal  as  defeat  in  the  field  to  the  kind 
of  triumph  required  if  this  war  is  going  to  end  in  the 
deliverance  of  mankind  from  all  sorts  of  tyrannies — 
not  merely  the  tyrann\-  of  the  sword-clinking  bully,  but 
of  the  self-aggrandiser  of  all  types.  .At  the  present 
hour  the  market,  with  the  assistance  of  the  moneyed 
interests  the  world  over,  is  carrying  on  the  war  for 
the  Government  by  providing  it  with  unstinted  credit, 
but  it  cannot  go  on  doing  that  indefinitely,  and  in  view 
of  the  fact  that — assuming  the  war  to  continue  to  the 
end  of  the  present  financial  year,  which  it  may  very 
well  do— we   shall  require   to   borrow  in  that   time  at 


least  ^"2,000,000,000.  The  Government  must  cast 
about  and  search  diligently  until  it  finds  some  means 
of  inducing  the  multitude  of  the  nation  to  cultivate  a 
habit  of  systematic  thrift.  We  must  be  taught  some- 
how to  deny  ourselves,  to  rise  above  that  sort  of  faith 
which  feels  strongest  when  backed  by  a  substantial 
bank  balance.  We  must  give  as  well  as  lend,  lest  the 
enemy  should  prevail  and  we  lose  all.  It  is  useless  to 
try  to  offer  hints  to  the  Treasury.  They  are  too  fully 
persuaded  of  their  own  wisdom  for  any  good  to  come 
of  that,  but  some  of  the  bankers  to  whom  they  are 
constantly  having  recourse  might  pluck  up  courage  to 
warn  them,  not  once,  but  every  day,  that  the  present 
method  of  leaning  on  the  market  for  quite  three-fourths 
of  the  amount  the  war  is  consuming  day  by  day  in- 
volves a  risk  of  ending  the  war  in  a  financial  cataclysm 
that  might  obliterate  civilisation  altogether.  Such 
obliterations  have  occurred  before  now.  A  broad- 
minded,  far-seeing,  and  intelligent  system  of  educating 
the  people  to  the  height  of  their  duty  and  obligations 
is  wanted,  but  the  time  is  too  short  now  for  it  to  be 
found  and  applied.  What  is  next  best?  What  is  most 
effective  in  swaying  humanity  in  ordinary? 


Last  week's  figures  emphasise  the  above  remarks,  but 
not,  perhaps,  sufficiently,  in  the  existing  apathy  of  the 
oflicial  mind,  to  stir  the  Government  and  the  people  to 
common  action.  Revenue  from  taxes  and  monopolies 
was  only  ;^8,999,ooo  in  the  week  ended  April  27,  and 
the  total  expenditure  of  the  week  on  supply  services 
alone  was  ;^55, 581,000.  Add  war  debt  interest  paid, 
;^'733,ooo  and  ^£,"100,000  of  miscellaneous  outgoings, 
and  the  total  actual  disbursements  of  the  week  came  to 
^;56,4i 3,000,  or  ;£r8,059,ooo  per  diem.  Supply  alone 
meant  an  outlay  of  ;^7,940,i43  per  diem,  and  the  actual 
revenue  of  the  week  was  therefore  not  much  more  than 
one  day's  expenditure.  But  the  total  overturn  of  the 
week  was  ;^i47,902,ooo,  or  ;£:2 1,1 28,855  per  diem,  and 
with  all  scrapings  possible  to  help  the  Treasury  was 
short  of  providing  the  required  sum  by  ;£;i, 225,000.  It 
sold  no  less  than  ;^86,9i 5,000  of  Treasury  bills  for 
supply,  for  it  had  ;^8i, 531,000  due  on  these  bills_  to 
redeem.  In  this  way  the  nett  increase  in  the  floating 
debt  under  the  form  of  Treasury  bills  was  ;^5.45''0<^' 
bringing  up  the  aggregate  outstanding  to  ;^953.723.cwo* 
.so  that  week  by  week  this  debt,  which  vvas  reduced  with 


428 


tTbe  Jnveetore'  TRevtew* 


May  4,   1918. 


a  s*ort  of  rush  towards  the  end  of  last  financial  year,  is 
again  being  piled  up.  The  Treasury  also  got 
;^'3, 200,000  from  the  sale  of  War  Savings  certificates,  a 
form  of  debt  which  efforts  arc  now  being  made  to  further 
popularise  in  the  gauche  fashion  of  Treasury 
financiers,  ;^i5,648,ooo  was  received  from  other  war 
debt  sources,  and  ;^22, 294,000  was  credited  as  pro- 
ceeds of  War  Bond  sales  received.  Then  the  Govern- 
ment raised  ,^"12,000,000  on  call  loan  for  ways  and 
means,  or  ;^4, 000,000  more  than  it  paid  off.  Among.st 
the  items  of  expenditure  outside  the  current  demands  of 
the  military  and  naval  services  of  the  administration 
was  ;^i, 660,000  absorbed  by  "  depreciation,"  ;^io6,ooo 
was  also  paid  out  to  meet  obligations  created  by  the 
Hou.sing  Act,  and\;^4i,ooo  of  War  Loan  and  Exchequer 
bonds  was  paid  off.  Even  so,  with  all  helps,  the  income 
was  short  of  the  outgo,  and  the  Exchequer  balances 
were  therefore  reduced  from  ;^i  7,560,000  to 
;^i6, 335,000.  A  year  ago  they  were  ;^23,25o,ooo.  But 
we  rub  along  somehow. 


Surprise  cannot  be  avoided  at  sight  of  the  indifference 
of  the  Government  to  simmerings  of  profound  labour 
unrest  and  dissatisfaction  in  all  parts  of  the  kingdom. 
One  might  have  thought  Mr.   Bonar  Law,  in  scheming 
out  his  taxes  this  year,   would  have  tried  to  do  some- 
thing to   reconcile   the   interests  of  employer   and  em- 
ployed, taken  a   step  towards   allaying  the  discontent. 
He  never  even  alluded  to  the  subject,  and  continues  his 
excess  profits   tax   without   any  reference  whatever  to 
the  wage-earners.     Yet  he  expects  these  wage-earners 
to   work  strenuously   and  without   revolt  year  in  and 
out,  and  while  grudgingly  bribing  them  with  increases 
in  wages,  when  these  cannot  be  longer  refused,  looks  to 
them  also  to  provide  considerable   amounts  of  money 
towards  carrying  on  the  war.    The  Savings  Certificates 
were  expressly  designed  to  benefit    by    attracting    the 
working  man  and  still  offer  him  advantages  for  which 
he  does  not  as  a  rule  seem  to  care.     Now  supposing  Mr. 
Law  had,  at  last  and  long  length,  adopted  another  and 
more  enlightened  plan.     If  he  had  said  to  the  employers 
wtth   regard  to  the  excess    profits   duty,    "  Your  men 
have   done  the  work  which   has   enabled  you  to  earn 
these  excess  profits,  and  if  I  leave  a  portion  of  them 
to  you— although  really  the  State  requires  all  of  them— 
and  is  entitled   to  all  .so   far  as   they  spring   from  the 
execution  of  public  orders — I   must  stipulate  that  you 
shall  divide  that  portion  left  to  you  with  your  men  on 
an  equitable  basis  to  be  agreed-upon    between    you," 
what  then?    The  employers  would  have  been  really  no 
poorer  by  having  to  submit  to  such  a  stipulation.     Orr 
the  contrary,  they  might  have  been  richer,  because  the 
excess  or  bonus  coming    to    the    men,    beyond    their 
regular  wages,  would  have  had  a  powerful  influence  in 
contenting  their  minds,  in  awakening  a  .sense  of  inde- 
pendence which  the    mere  receipt    of    wages,  however 
high,  can  never  give.     But  Mr.  Law  never  thought  of 
that.     Did  the  employers  ever  think  of  it?    Wc  have  not 
heard  of  one  so  much  as  hinting  at  any  such  arrange- 
ment.    Nevertheless,  the  dav  when  the  workman  can  be 
treated    merely  as  a  chattel   is  drawing  near  its  end. 
And   in  other  countries  the  coming  change  is  already 
shadowed.     Look   what  a  correspondent  in   Italy  tells 
us  about  the   action  of  the    manufacturers   of    Ferno, 
whose  managing  council  has  decided  to  give  each  work- 
man the  same  dividend  as  the  shareholders,  the  work- 
man's dividend  being  calculated  upon  the  aggregate  of 
his  earnings   for  the  year.     He  thus   becomes  a  pro- 
prietor, a  capitalist.  In  virtue  of  his  labour,  and  in  that 
there  is  surely  the  germ  of  a  far-reaching  change  in 
the  relations  of  masters  and  men. 


Lord  Selborne  is  not  a  great  land-owning  magnate. 
He  IS  of  the  nohlesse  Je  la  robe,  as  the  French  phrase 
jt,  and  cannot,  therefore,  be  expected  to  look  at  the 
land  question  from  the  point  of  view  of  the  nobles  of 
great  territorial  possessions.  That  explains  why  he 
has  been  preaching  to  the  farmers  at  York  as  else- 
where the  doctrine  of  State  control  over  agriculture. 
"  There  must  be  a  new  land  and  forestry  policy,"  he 


has  been  telling  them,  and  explained  that  policy  to 
mean  State  interference  with  landlords  and  farmers  to 
an  extent  and  of  a  character  greater  than  ever  before. 
This  interference  or  control  would  fall  to  be  a  duty  of 
the  Government,  because  "agriculture  must  be  recog- 
nised as  an  integral  part  of  the  defence  of  the  realm," 
and  the  wastage  of  land  would  have  to  stop  as  well,  and 
the  over-preservation  of  game.  Bad  farming  must  dis- 
appear, and  the  State  would  have  to  see  that  "the 
national  policy,  whether  of  tariffs  or  anything  else," 
was  not  allowed  to  cripple  any  branch  of  agriculture. 
This  is  all  very  fine,  your  lordship,  but  surely  the  land- 
lor3s  themselves  do  not  reli.sh  a  prosp)ect  of  this  kind, 
which  implies  that  their  land  should  be  taken  com- 
pletely out  of  their  control  and  that  "  a  department  of 
State"  should  direct  the  treatment  of  the  soil,  the 
management  of  the  forests,  the  nature  of  the  crops  to 
be  cultivated,  and  .so  forth ;  that  the  game  laws 
also  should  be  suspended  or  alx>lished  and  all  the  old 
usages  of  the  territorial  despot  .set  at  nought  and  up- 
rooted in  obedience  to  the  exigencies  of  a  country  living 
under  a  rigiine  whose  governing  impulse  is  self-de- 
fence. We  hope  it  is  not  to  be  so  bad  as  that,  but  if  so, 
landowners  of  all  ranks  do  well  to  be  afraid. 


It  is  true  enough  that  the  land  has  been  neglected  to 
a  shameful  extent  in  this  country,  that  it  has  not  been 
put  to  the  best  uses,  that  the  owners  of  the  soil  have 
treated  it  as  a  luxury  from  which  they,  and  they  alone, 
should  reap  most  of  the  benefit ;  but,  all  this  granted, 
there  is  surely  time  yet  for  those  who  have  sinned  to 
mend  their  ways,  and  themselves  bring  about  that  re- 
volution and  reorganisation  which  may  be  necessary  to 
make  the  United  Kingdom  a  land  of  the  free  in  a  sense 
that  is  real  and  true.     Would  it  not  be  a  finer  exhibi- 
tion of  self-denial,  of  kinship  with  one's  fellow--men,  of 
loyalt}  to  the  best  interests  of  mankind,  were  the  owners 
of  the  land  voluntary  to  lay  down  the  privileges  they 
have  amassed  in  their  own  hands,  and  range  themselves 
alongside  those  who  toil,  to  take  their  part  in  the  risks 
and   rewards  of  a  higher  ideal  in  cultivation   than  has 
ever  yet  been  attained?     The  Marquis  of  Lincolnshire, 
whose  original  name,  we  believe,    is  .Smith,    has  been 
promoting  in  Parliament  a  measure  to  protect  farmers 
against  rent-raising  landlord.s — but  only  for  the  dura- 
tion of  the  war.      His  marquisship  would  neither  allow 
the  farmers  to  be  evicted  nor  to  be  made  to  pay  more 
rent  while  the  war  lasts,  and  evidently  he  regards  it  as 
a  measure  of  great,  and  prudent,   liberality   and    self- 
denial   on  the  part  of  those  who  own  the  soil.     Is  it 
that?     What  is  the  good  of  a  brief  immunity  of  that 
kind?     Will  it  tempt  any  farmer  to  put  his  best  into 
the  land?     Why  should  it?     The  war  ends,  and  all  is 
to   be   as   before.     The  farmer's    improvements,   if   he 
makes  any  meanwhile,  are  again  to  be  at  the  mercy  of 
the  landlord,    and  may    be  confiscated,    probably   will 
be  ;  his  rent,  subject  to  the  caprice  of  landowners  and 
their  agents,   may  be  raised,   and    will  be,    without  a 
doubt,    for  life  will  be  hard  even  for  the  landowner  in 
too  many  instances  after  the  war  is  over,  all  the  harder, 
probably,      because      of     his     faineantism.       Cannot 
men   like  the  noble  marquis  rise  to   something  nobler, 
more    hope-instilling?     In    their    own    interests,    land- 
owners ought  to  be  able  to  conceive   .something  more 
useful  for  them  to  do  than  to  live  as  parasites,  on  the 
watch  to  foreclo.se    on    new    chances    to    reap    "  un- 
earned increment."     Ornamental  they  may  be,  but  of 
no  use  in  the  society  which  will  have  to  be  constituted 
in  these  islands  of  ours  when  peace  comes  back  to  us — 
"  of  ours,"  please   note,   no  longer  exclusively  of  the 
landlords.  They  ought  to  be  useful  and  capable  of  much 
reinvigorating  labour,  these  landlords  ;  but  it  will   not 
be  by  subscribing  to  the  doctrine  of  the^Earl  of  Sel- 
borne,    or   by   supporting    trivial   projects   of   farmers' 
temporary  relief,  such  as  that  furthered  by  the  Marquis 
of  Lincolnshire,  that  they  will  reform  their  position  and 
take  their  place  as  real  leaders  of  the  nation.       Have 
either  of  these  gentlemen,  have  any  men  of  this  class, 
given  a  thought  to  what  is  going  to  be  the  composition 
of  the  Parliament  to  be  elected  under  the  new  franchise? 
Will  it  be  tolerant  of  the  hoary  privileges  that  disguise 


Mav  4,  1918. 


Zbc  Jnvestors'  IReview* 


429 


infinite  liberty  to  do  injustice,  still  possessed  by  the  land- 
lords of  the  country,  who,  from  time  immemorial,  have 
made  laws  through  a  subservient  Parliament  in  their 
own  interests?  They  had  better  ponder  a  question  of 
this  kind,  and  try  and  wake  up  to  the  dangers  of  their 
position  while  yet  there  is  time. 

It  says  much  for  the  business  ability  of  Lord 
Rhondda  that  nothing  but  regret  should  be  heard  when 
I  he  news  became  public  that  he  had  been  compelled 
through  ill-health  to  resign  his  position  as  Food  Con- 
troller. He  has  had  a  most  thankless  job  in  that  posi- 
tion, and  it  would  be  extremely  difficult  to  replace  him, 
although  he  has  an  able  and  loyal  assistant  in  Mr. 
Clynes.  We  hope,  therefore,  it  is  true  that  as  his 
health  has  improved,  his  courage  has  returned',  and  that 
the  appreciation  of  his  services  shown  by  the  nation 
has  contributed  to  the  withdrawal  of  his  resignation. 
Everybody  has  had  a  dig  one  time  or  another  at  his 
lordship  while  he  worked  to  save  the  country,  not, 
perhaps,  from  actual  famine,  but  from,  on  the  one 
hand,  excessive  prices  for  the  essentials  of  life,  and,  on 
the  other,  from  foolish  or  selfish  waste  of  the  stocks 
in  hand  or  available.  It  has  been  a  stupendous  and 
quite  thankless  undertaking.  Every  restriction  has  been 
the  souice  of  grumblings  without  end,  and'  yet,  on  the 
other  hand,  as  the  means  taken  became  effective  the 
discontent  died  down,  especially  as  it  gradually  became 
apparent  that  Lord  Rhondda  was  working  unselfishly 
and  democratically  for  the  good  of  all  the  community. 
It  was  hardly  expected  that  a  man  who  had  taken  the 
trouble  to  disguise  himself  in  a  peerage  would  stand 
so  loyally  on  the  side  of  the  multitude  as  his  lordship 
seems  to  have  done.  We  bless  him,  and  hope  he  may  be 
able  to  stay  at  his  post.  There  is  much  yet  to  be  done  for 
the  food  difficulties  are  by  no  means  at  an  end,  rather 
they  seem  not  unlikely  to  increase,  especially  if  the 
great  armies  now  on  foot  have  to  be  maintained  until 
after  the  harvest,  throughout  next  winter,  and  should 


the  world's  harvest  at  any  point  prove  a  failure. 
Famine  is  beyond  doubt  spreading  all  over  the  empires 
of  the  Habsburgs  and  HohenzoUerns.  It  is  there  now, 
and  no  matter  what  the  harvest  may  be,  or  how  soon 
the  war  may  end,  it  will  recoil  on  the  rest  of  mankind, 
rendering  life  harder  all  over  the  world.  Apart,  too, 
from  aught  else  the  necessity  61  keeping  armies  amount- 
i"?!  perhaps,  to  between  10,000,000  and  12,000,000  of 
fighting  men  and  theif  camp  followers  of  all  kinds 
sufficiently  fed  must  continue  to  make  enormous  inroads 
upon  the  world's  supplies,  however  bountiful  the  harvest 
may  be.  Therefore,  Sflrong  irfen  and  wise  will  be 
needed  for  many  a  month  yet  to  see  to  it  that  no  one 
here  is  left  to  starve,  and  equally  that  no  one  is  free 
to  indulge  selfishly  in  over-abundance.  We  must  help 
to  feed  the  hungry  among  our  Allies  everywhere,  and 
in  all  this  labour  of  giants  the  head  and  hand  of  a  man 
like  Lord  Rhondda  could  ill  be  spared. 


Herr  Havenstein,  the  President  of  the  German  Im- 
perial Bank,  has  been  imitating  the  Kaiser  in  blowing 
the  trumj>et  about  this  last,  the  eighth,  German  loan. 
He  declares  the  subscriptions  to  have  amounted  to 
14,776,000,000  marks,  or  at  gold  par — and  the  mark 
is  by  no  means  near  that  now — to  ;^738,30o,ooo.  This, 
he  declared,  is  ;^87, 500,000  above  the  "  record  "  made 
by  the  sixth  War  Loan,  hitherto  the  biggest  bluff  of  the 
series,  and  it  is  indeed  a  wonder  that  an  exhausted 
country  whose  commerce  has  gone,  which  has  no  live 
manufactures  and  nothing  to  manufacture  except  war 
tools  and  poison  gases,  guns  and  shell,  and  whose  males 
are  being  destroyed  or  maimed  probably  at  the  rate 
nearer  five  than  four  millions  a  year,  should  be  able  to 
exhibit  such  dazzling  subscribing  power.  But,  after  all, 
what  can  such  loans  be  made  up  of?  Have  the  Junkers 
contributed  their  estates  to  the  refreshment  of  the  Im- 
perial Treasury?  Catch  them.  Have  the  industrial 
magnates,  great  banks,  the  idle  wealthy  or  middle 
classes,    still   plentiful,   planked   down  their  all?     You 


ASSETS  EXCEED    £2,500,000. 


CLAIMS    PAID,    OVER    £10,000,000. 


By  Appointment. 


GENERAL 

Accident,  Fire  and   Life 

Assurance    Corporation,    Limited. 

ESTABLISHED     1885. 

ACCIDENT     INSURANCE 

Liberal  Benefits  and  Conditions,   Low  Premiums. 

WAR    ECONOMY. 

In  consequence  of  the  War,  the  cost  of  building  material  and  labour  has  increased  fully  100  per  cent.  All  owners 
of  property  should  therefore  increase  their  Fire  Insurances ;  this  they  can  do  at  little  oi"  no  extra  cost  by  taking  a 
FIRE    BONUS    POLICY  with  this  Corporation  and  thus  effect  a  saving  of  20  per  cent,  of  each  premium. 

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ALL    CLASSES    OF     INSURANCE     BUSINESS    TRANSACTED 

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NOTE. — The    Bonds   of   the   Corporation    are   accepted   by   all    Departments   of   His  Majesty's   Government. 


430 


^be  Jnvestors'  IRevtew- 


May  4,  191H. 


may  be  sure  they  have  done  nothing  of  the  sort.  Where 
has  the  money  come  from,  then?  Principally  from  the 
conversion  of  Government  debts  into  war  lx)nds,  as  we 
explained  long  ago.  Krupp,  as  the  type,  shows  how 
the  thing  is  done.  With  each  loan  that  comes  out  the 
great  Krupp  firm  appears  as  a  fresh  subscriber  for  a 
large  amount,  and  the  mob  of  lesser  State  creditors 
follow  .suit.  It  is  all  most  simple;  they  cannot  help 
themselves.  Their  bills  cannot  be  paid  because  the 
Government  has  nothing  to  pay  with  except  I.O.U.'s. 
So  a  more  or  less  large  proportion  of  the  unpaid  debt 
is  subscribed  into  the  loan,  and  the  wheel  of  fortune 
goes  round  until  the  next  notch  comes  up.  And 
financiers,  bankers,  the  potentates  of  make-believe 
finance  of  all  ranks  make  great  profits  by  manipulating 
the  bales  of  paper  given  in  exchange  for  unpaid 
"  accounts  rendered,"  prey  upon  each  other  and  grow 
I  ich  also  on  paper.  Some  of  them  may  even  to-day  be- 
lieve that  war  is  glorious  and  an  unfailing  source  of 
riches.  And  the  tyranny  of  hunger  grows  stronger  in 
all  the  land. 


What  is  the  matter  with  the  Food  Control,  which 
seems  to  have  a  "  Press  "  almost  equal  to  Mr.  Lloyd 
George's  own  particular?  According  to  the  Board  of 
Trade  figures,  there  are  relatively  huge  stocks  of  cocoa 
in  the  country — far  more  than  the  average  of  pre-war 
days.  At  the  same  time,  consumers  have  to  pay  200 
to  300  per  cent,  more  for  the  article  than  they  used  to 
do,  and  that  position  has  always  been  a  puzzle  to  us 
while  the  Food  Ministry  bawls  through  its  gramo- 
phones that  it  has  stopped  profiteering.  We  cannot 
pretend  to  be  experts  in  every  branch  of  commerce, 
except  when  there  is  some  dfefinite  reason  for  making 
a  special  investigation,  but  the  report  of  the  Caamano 
Tenguel  Estate,  Ltd.,  has  just  come  into  our  hands, 
and  the  first  point  that  strikes  us  is  that  in  the  past 
year  (191 7)  the  average  price  realised  for  its  crop  ot 
36,150  quintals  only  realised  $16.27,  against  $25.05  per 
quintal  in  1916.  Production  was  as  near  as  possible  the 
same  in  both  years.  We  know,  of  course,  that  the  cost 
of  manufacture  has  increased,  and  the  price  of  sugar  is 
higher,  but  when  the  raw  material  which  this  typical 
company  supplies  is  33  per  cent,  down  it  is  very  hard 
to  find  any  excuse  for  the  finished  article  being  raised  to 
the  extent  that  it  has  been.  Possibly  if  the  Food  Con- 
trol had  taken  any  notice  of  the  business  the  jxisition 
might  have  been  worse,  and  as  a  wag  in  the  House  of 
Commons  said,  if  a  price  were  fixed  for  rats,  these  pests 
would  immediately  disappear  !  Anyhow,  the  Caamafio 
Estate  does  not  appear  to  be  profiteering.  Its  profits 
last  year  were  ;^2,ooo  smaller  at  ;^i6,5oo,  but  with  a 
larger  balance  brought  in,  it  was  able  to  repeat  the 
dividend  of  5  per  cent,  on  the  ordinary  shares,  and  to 
carry  forward  a  .slightly  larger  amount  at  ;^i  2,000. 
But  there  is  something  wrong  somewhere,  and  we  hope 
it  may  be  explained  by  the  chairman  of  the  company 
at   the  forthcoming  meeting. 


There  is  plenty  of  evidence  of  the  prosperity  being 
enjoyed  in  the  north  in  the  report  and  balance-sheet  of 
the  Union  Bank  of  Scotland  for  the  year  to  April  2. 
Notes  in  circulation  have  risen  to  ;^2,536,ooo,  an  in- 
crease of  ;^640,ooo,  which  follows  an  advance  of 
;^30o,ooo  in  the  previous  year,  and  deposit,  &c.,  ac- 
counts are  up  no  less  than  ;(^6, 400,000  at  ;^23,65o,ooo. 
Gold  and  silver  coin,  notes,  &c.,  have  increased 
;^8oo,oc)o  to  ;^3, 163,000,  other  cash  balances  ;^950,ooo 
to  ;^3, 273,000,  British  Government  securities  ;^470,ooo 
to  ;^6,028,ooo,  and  bills  discounted  ;£5'7,6oc,ooo  to 
,-^9,644,000,  but  loans  on  stocks,  &c.,  have 
fallen  ;^2, 600,000  to  ;^2, 573,000,  and  other 
securities  are  ;^320,ooo  lower  at  ;^68o,ooo. 
The  balance-sheet  now  totals  at  ;^28,86o,ooo, 
an  increase  of  ;^6, 500,000,  and  the  changes 
generally  indicate  a  healthv  expansion  in  busi- 
ness. Consequently,  the  gross  profits  show  an  increase 
of  ;^57,ooo  at  ;^520,ooo,  and  the  nett  profits  are  ;£^29,ooo 
up  at  ;^279,ooo,  but  ;^40,ooo  less  was  brought  in,  and 


the  amount  available  is  ^'i  1,000  smaller  at  ;£340,ooo. 
.'Vfter  again  paying  15  per  cent.,  or  30s.  per  share, 
^'100,000  is  placed  to  reserve  against  ;^i20,ooo  written 
olT  investments  last  year,  and  ;^"20,ooo,  or  just  double, 
is  written  off  properties,  leaving  ;^6o,45o  to  be  carried 
forward,  or  practically  the  same  as  last  time.  It  is  a 
gratifying  record  at  all  points. 

No  doubt  the  military  operations  of  the  Allies  at 
Salonika  have  indirectly  benefited  Greece  in  a  variety  of 
ways,  and  the  report  of  the  Ionian  Bank,  Limited,  for 
the  past  year  shows  exceptional  progress.  Current 
•  iccounts  have  increased  ;^56o,ooo  to  ;^2,835,ooo,  and 
deposits  ;^300,ooo  to  ;^"2, 100,000,  while  a  new  item  of 
"other  liabilities  and  credit  accounts"  appears  at 
^2,740,000.  This  is  evidently  due  mainly  to  large 
operations  which  the  bank,  jointly  with  others,  has  l>een 
conducting  on  behalf  of  the  Greek  Government  for  the 
provisioning  of  the  country,  in  conne<:tion  with  which 
liabilities  amounting  to  about  2J  millions  are  still  out- 
standing. Cash  balances  have  risen  ;^275,ooo  to 
^'986, 000,  advances  on  securities  are  ;^8oo,ooo  up  at 
;i£.'i, 807,000,  and  loans,  &c.,  have  increased  ;^2,300,ooo 
to  ;^3,038,ooo,  but  bills  receivable  are  ;£"950,ooo  lower 
at  ;^577,ooo.  The  nett  result  is  that  the  balance-sheet 
now  totals  ;^9, 572,000,  an  increase  of  3^  millions.  Gross 
profits  consequently  rose  ;£;58,ooo  to  ;^239,ooo,  and  the 
nett  profit  comes  out  ;^29,ooo  to  the  good  at  £72,^00. 
After  again  placing  ;£;io,ooo  to  reserve,  ;^23,ooo  is 
written  off  the  Greek  2J  per  cent,  gold  loan,  and  the 
dividend  is  raised  from  6  per  cent,  to  7  per  cent.,  tax 
free,  which  still  leaves  ;^2,ooo  more  at  ;^9,i30  to  be 
carried  forward. 

Sir  Donald  Maclean  has  a  .most  interesting  article  in 
the  Contemporary  Review  on  the  probable  effects  of 
raising  the  age  for  military  spr\  ice  from  41  to  51.  As 
chairman  of  the  London  Appeal  Tribunal,  he  has  dealt 
in  the  pa.st  two  years  with  54,000  c.ises.  including  1 1,000 
applications  for  renewal,  so  that  his  experience  is 
unique,  and  his  conclusions  deserve  the  most  serious 
consideration.  The  whole  article  ought  to  be  carefully 
read,  but  we  must  be  content  with  quoting  one  or  two 
points.  A  record  was  kept,  he  says,  during  a  recent 
period  of  two  months  of  the  categories  and  grades  of 
men  coming  before  the  Tribunal.  In  that  period  2,600 
cases  were  decided,  of  which  nearly  45  per  cent,  were  in 
Grade  3.  Recent  re-examinations  have  placed  the 
majority  of  men  between  39  and  41  in  that  category. 
The  latest  test  was  in  the  week  ending  April  20,  when 
90  cases  of  men  between  38  and  41  were  dealt  with. 
Eight  men  only  were  in  Grade  i,  39  in  Grade  2,  and  43 
in  Grade  3.  Sir  Donald  proceeds  to  state  that  military 
experience  has  shown  that  the  proportion  cf  sickness 
casualties  is  two  and  a-half  times  greater  between  the 
ages  of  35  and  40  than  in  the  case  of  men  between  27 
and  35,  and  he  asks  :  "  What,  then,  are  likely  to  be  the 
sickness  casualties  of  men  between  the  ages  of  41  and 
51?  There  is  serious  danger  that  unless  great  care  is 
taken  the  greater  number  of  them  will  break  down 
under  the  strain  of  subjection  to  Army  conditions  in 
war  time,  even  on  home  service.  Each  man  will  cost 
;^225  a  year,  and  to  this  must  be  added  the  inevitable 
cost  of  permanent  pensions.  I  do  not  need  to  dilate 
upon  the  personal  tragedies  of  shattered  prospects, 
broken  homes,  and  physical  suffering.  Turning  to  the 
disturbance  of  business,  only  those  who  have  had  during 
the  past  two  years  constant  experience  of  the  hearing  of 
individual  cases  can  grasp  fully  the  significance  of  the 
vitallv  necessary  work  performed  by  men  between  40 
and  51  in  the  essential  businesses  and  social  life  of  the 
nation."  Assuming  that  the  present  medical  standard 
is  not  lowered — and  surely  after  the  scandals  of  the 
past  that  is  inconceivable—  and  that  reasonable  regard 
is  paid  to  the  maintenance  of  the  business  of  the  country. 
Sir  Donald  finds  it  difficult  to  believe  that  more  than  3 
or  4  per  cent,  of  the  nominal  numbers  can  be  obtained. 
Is  such  a  meagre  proportion  worth  all  the  trouble  and 
anxiety  that  has  been  caused?  We  begin  to  wonder 
inore  and  more  what  the  present  Government  is  driv- 
ing at. 


May  4,  1918. 


XTbe  Jnveetors'  IReview* 


43 » 


Considering  the  conditions,  the  Eagle  Oil  Transport 
Co.,  Ltd.,  did  wonderfully  well  last  year.  It  ^s  true 
the  trading  profit  of  ;^264,ooo  shows  a  reduction  of 
^'40,000,  but  the  decline  would  have  been  greater  if  the 
charterers  had  not  again  made  a  substantial  contribu- 
tion towards  the  increased  cost  of  operating  the  fleet. 
With  ;£''9,ooo  more  brought  in  and  ;^i4,ooo  less  at 
_^ioi,ooo  required  for  depreciation,  the  balance  avail- 
able is  only  ;^i 7,000  lower  at  ;^205,500,  and  on  this 
occasion  nothing  has  to  be  written  off  for  the  expenses 
of  the  preference  share  issue,  which  last  year  absorbed 
^^46,000.  Consequently,  the  ordinary  dividend  can  be 
raised  from  6  per  cent,  to  7  per  cent.,  and  the  prefer- 
ence shares  also  receive  an  addition.nl  i  per  cent., 
leaving  ;^6,ooo  more  at  ;^48,c)oo  to  be  carried  forward. 
Several  losses  have  occurred  through  enemy  action,  but 
the  amounts  received  by  way  of  insurance  exceed  the 
book  value,  and  we  find  the  replacement  and  other  re- 
serve funds  ;£'6oo,ooo  up  at  ;^635,ooo.  Construction 
remains  suspended  except  in  respect  of  two  vessels 
which  it  is  hoped  will  be  delivered  during  the  current 
year.  Creditors  have  increased  ;^300,ooo  to  ;^47<S,ooo, 
while  debtors  are  ;^264,ooo  up  at  ;^424,ooo,  and  cash 
balances  are  ;^"7i6,ooo  higher  at  ;£,i,i36,ooo.  The 
value  of  the  fleet  and  shares  in  the  San  .Antonio  Steam- 
ship Co.,  Ltd.,  is  put  at  ;^2,28o,ooo,  a  reduction  of 
^150,000.  Of  course,  the  company  is  in  an  excep- 
tional position,  but  it  looks  as  strong  as  could  be 
desired. 


Newspapens  generally  have  had  exceptional  diffi- 
culties to  contend  with  recently,  and  the  Financial 
Times,  Ltd.,  is  to  be  congratulated  on  maintaining  the 
improvement  which  it  secured  in  1916.  Indeed,  la.st 
year  the  nett  profits  were  ;^8oo  higher  at  ^"20,060,  and 
with  ;^2,ooo  more  brought  in  there  is  a  balance  of 
;^47,ooo  for  disposal.  In  view,  however,  of  the  un- 
certainty of  the  outlook,  the  directors  recommend  a 
dividend  of  only  4  per  cent.,  as  against  5  per  cent,  a 
year  ago,  and  as  ;£'2,ooo  against  ;^3,75o  is  reserved  for 
income-tax,  ;^32,650,  or  ^5,650  more,  remains  to  be 
carried  forward.  Changes  in  the  balance-sheet  are  not 
of  much  importance,  but  we  may  note  that  while  cash 
and  investments  are  lower,  work  in  hand,  stocks,  &c., 
have  risen  from  ;^i3,900  to  ;^33,300.  Plant  and 
machinery  have  been  written  down  to  ;£^57,8oo,  and 
printing  works,  offices,  &c. ,  to  ;^5S,ooo.  It  is  a  very 
satisfactory  display  when  all  the  circumstances  are 
taken  into  consideration. 


Although  wc  have  constantly  urged  for  years  past 
that  the  immense  water  resources  of  the  country  ought 
to  be  utilised  for  the  development  of  electric  power  on  a 
large  scale,  we  are  not  sorry  that  the  Lochaber  scheme 
has  been  quashed.  There  is  a  good  deal  to  be  said  for 
the  sporting  and  artistic  views  on  the  subject,  especially 
the  latter,  and  while  they  need  not  prevail  to  the  extent 
of  arresting  enterprise  which  would  benefit  the  whole 
community,  they  can  only^  be  properly  safeguarded  if 
I  he  question  is  considered  from  the  broadest  national 
standpoint.  The  desires  and  ambitions  of  private  com- 
panies are  not  to  be  trusted  in  such  cases,  and  the  only 
satisfactory  way  to  proceed  would  be  the  appointment 
c'f  a  small  commission  to  study  the  whole  problem,  with 
an  instruction  to  have  due  regard  to  the  amenities  of 
the  different  localities  which  may  be  found  suitable  for 
the  utilisation  of  water  power.  The  object  could  easily  be 
attained  without  undue  disfigurement  of  the  natural 
beauties  of  places  like  Lochaber,  but  it  cannot  be  done 
satisfactorily  in  a  haphazard  way,  and  it  is  better  to 
wait  a  few  years  for  a  comprehensive  scheme  than  to 
proceed  without  proper  consideration,  and  probably 
have  to  expropriate  vested  interests  later  at  an  exor- 
bitant price.  

Engineering  works  generally  have  been  so  fully  and 
profitably  occupied  that  it  comes  as  something  of  a 
shock  to  find  a  business  like  the  British  Westinghouse 
Electric  and  Manufacturing  Co.,  Ltd.,  tumbling  back 
to  the  pre-war  level.  Last  year  the  trading  profits 
amounted  to  ;^"i94,400,  a  decrease  of  ;^i  17,000,  and 
after  paying  debenture  interest  and  providing  ;^5,5oo 
less  for  depreciation  of  works,  plant,  &c.,  the  nett  profit 
is  ;^i  10,000  lower  at  ;^88,i2o.  Accordingly  the  15 
per  cent,  preference  shares  have  again  to  be  content 
with  7I  per  cent,  paid,  less  tax,  this  time  instead  of  tax 
free.  However,  ;^'4,ooo  more  at  ;^48,ooo  is  written  off 
as  special  depreciation  allowance,  and  the  balance  for- 
ward is  reduced  by  ;^38,5C>o  to  ^^,1,200.  During  the 
Near  110,000  preference  shares  of  ;^2  each,  as  well  as 
500,000  deferred  shares  of  is.  each,  were  issued,  raising 
the  total  share  capital  to  ^1,395,000.  Prior  lien  de- 
bentures for  ;^8,40o  were  redeemed,  reducing  the 
amount  to  ;^i83,ooo,  but  the  4  per  cent,  mortgage  de- 
benture stock  remains  at  ;^i,24i,ooo,  and  sundry  credi- 
tors have  ■  risen  ;^230,ooo  to  ;^85o,ooo.  Stocks  have 
increased  ;^330,ooo  to  ;^i,490,ooo,  and  sundry  debtors 
;^27o,ooo  to  ;£'742,ooo.  Cash  is  lower  at  ;^i38,ooo,  but 
investments  are  ;^io5,ooo  up  at  ;^204,ooo.  Of  course, 
15  per  cent,  preference  shares  are  a  terrible  weight  to 
carry,  but  the  results  cannot  be  described  as  brilliant. 


In  the  circular  issued  last  December  the  directors  of 
John  I.  Thornycroft  and  Co.,  Ltd.,  stated  that  the 
questions  outstanding  with  regard  to  war  taxation  in- 
volved such  considerable  amounts  that  it  was  quite  im- 
practicable to  make  up  the  accounts  to  July  31,  1916, 
without  running  serious  risk  of  misleading  the  share- 
holders. The  annual  meeting  adjourned  on  December 
8,  1916,  is  to  be  resumed  next  Wednesday,  but  another 
meeting  held  on  December  1 1  last  was  also  adjourned, 
and  surely  it  would  have  saved  a  great  deal  of  trouble 
and  inconvenience  if  both  had  been  held  on  the  same 
day.  Now  that  it  has  at  last  been  possible  to  complete 
the  accounts  for  1916  there  cannot  be  any  very  valid 
reason  for  further  delay  in  issuing  those  to  July  31, 
1917.  A  basis  of  settlement  must  have  been  arrived 
at,  and  any  difference  «till  in  dispute  with  respect  to 
the  later  period  can  only  be  of  a  more  or  less  trumpery 
character.  As  it  is,  we  cannot,  without  prolonged  search, 
tell  exactly  how  matters  stand  at  present,  and  we  shall 
defer  any  attempt  to  analyse  the  figures  until  those  for 
1917  are  available.  Including  ;^78,i5o  brought  for- 
ward from  1915,  the  balance  of  profit  at  July  31,  1916, 
was  ;^io5,30o,  after  deducting  excess  duty,  &c.,  so  that 
the  nett  profit  appears  to  have  been  about  ;£'27,ooo.  In- 
terest and  dividends,  however,  seem  to  have  absorbed 
;^52,ooo,  and  after  placing  ^25,000  to  reserve  and  con- 
tributing ;^S,ooo  to  the  benevolent  fund,  there  re- 
mained ;^23,i2o  to  be  carried  forward.  It  is  stated 
that  practically  the  whole  of  the  resources  of  the  com- 
pany continue  to  be  employed  on  war  work,  and  the 
turnover  of  the  business  (which  in  1916  was  more  than 
four  times  the  pre-war  average)  is  still  on  the  increase. 
The  accounts  for  the  past  twelve  months  will  therefore 
be  awaited  with  exceptional  interest. 


LLOYDS  BANK 
LIMITED. 

HEAD  OFFICE :  71,  LOMBARD  STREET,  E.C.  3. 


SAVINGS  BANK  DEPARTMENT. 

The  services  of  the  Bank,  with  nearly  900 
Offices  in  England  and  Wales,  are  at  the 
disposal  of  the  public  for  the  deposit  of 
savings,  however  small.  Interest  is 
allowed,  and  withdrawals  not  exceeding 
£5  In  amount  can  be  made  without  notice. 
Full  particulars  can  be  obtained  on  appli- 
cation at  any  of  the  Bank's  Offices. 


FRENCH    AUXILIARY: 

LLOYDS  BANK  (FRANCE)  AND 
NATIONAL  PROVINCIAL  BANK  (FRANCE)  LTD. 


432 


^be  investors'  IRevtew 


May  4,   1918. 


At  the  meeting  of  the  Army  and  Navy  Co-operative 
Society,  Ltd.,  last  week,  an  advisory  committee  was 
appointed  with  instructions  to  report  to  an  adjourned 
meeting  to  be  held  on  June  25,  on  a  scheme  to  absorb  the 
Army  and  Navy  Auxiliary  Supply  Co.,  Ltd.,  and  to 
recommend  "  for  inclusion  in  the  directorate  as  manag- 
ing directors  gentlemen  having  commercial  training  and 
experience."  To  a  great  many  people  this  will  come 
with  the  shock  of  a  thunTIerbolt.  That  the  world- 
famed  "  stores"  should  at  this  time  of  day  be  in  need 
of  "  gentlemen  of  commercial  training  and  experience  " 
as  managing  directors  will  be  regarded  in  some  quarters 
as  little  short  of  rank  blasphemy.  But  it  is  evident  that 
a  very  strong  body  of  the  shareholders  are  dissatisfied 
with  the  existing  management,  and  especially  with  the 
relations  between  the  society  and  the  Auxiliary  Co.,  it 
lye'ing  alleged,  and  not  seriously  challenged,  that  the 
interests  of  the  former  are  often  sacrificed  for  the  benefit 
of  the  latter.  We  are  sorry  that  these  domestic  troubles 
should  have  arisen,  for  the  society  has  done,  and  is 
doing,  magnificent  work,  but  it  is  certainly  better  that 
Ihe  questions  at  issue  should  now  be  thoroughly  investi- 
gated, and  we  hope  the  committee's  report  will  be  issued 
with  as  little  delay  as  possible.  In  the  year  to  January 
26  the  trading  profits  amounted  to  ;^55o,ooo,  an  in- 
crease of  ;^22,ooo,  while  the  working  expenses  were 
;^9,ooo  lower  at  ;£'3o8,400.  Consequently  the  nett  profit 
was  ;^24i,ooo,  which  compares  with  ;^2io,ooo  for  the 
previous  year,  and  ;^i95,ooo  in  1915,  a  very  satisfactory 
record,  although  it  lends  colour  to  the  allegation  that  the 
society  is  not  particularly  generous  in  the  treatment  of 
its  employees.  Shareholders  again  receive  a  dividend  of 
3s.  per  share  (300  per  cent.),  and  in  addition  a  bonus  of 
4d.  per  share,  absorbing  altogether  ;^20o,ooo,  while  the 
cash  bonus  to  the  staff  is  raised  from  ;^i4,20o  to  ;£25,7oo 
and  the  balance  forward  is  only  a  trifle  less  at  ;^24,900. 
The  dividend  is  large,  but  the  capital  is  a  mere  bagatelle 
compared  with  the  amount  of  business  which  is  handled. 


It  is  satisfactory  to  learn  that  the  British  Columbia 
Parliament  has  granted  full  powers  to  the  City  of  Van- 
couver to  eliminate  the  "  jitney  "  motor-car  competition 
as  regards  both  the  city  and  inter-urban  services  of  the 
British  Columbia  Electric  Railway.  In  January  last  we 
dealt  fully  with  the  position  in  connection  with  a  re- 
port by  Professor  Shortt,  appointed  by  the  Government 
of  British  Columbia  to  deal  with  the  whole  of  the  matters 
in  dispute  between  the  City  authorities  and  the  company, 
both  parties  agreeing  to  abide  by  the  Professor's  deci- 
sions. His  main  finding  was  that  the  "  jitney"  com- 
petition was  grossly  unfair  to  the  Electric  Railway,  and 
incidentally  he  emphasised  the  fact  that  the  jitney  cars 
merely  provided  a  fair  weather  service,  and  disappeared 
from  the  routes  at  such  times  as  they  were  most  urgently 
needed.  There  was  also  a  good  deal  of  friction  between 
the  City  and  the  company  with  regard  to  the  terms  of 
compulsory  expropriation,  but  Professor  Shortt's  report 
was  so  eminently  sane  on  all  points  that  we  have  no 
doubt  it  helped  to  remove  every  cause  of  friction.  As 
British  capital  is  involved  to  the  tune  of  over  4J  mil- 
lions, much  of  which  has  earned  no  dividends  since  the 
troubles  arose,  a  complete  settlement  of  the  dispute 
will  be  very  welcome  to  the  holders  of  the  company's 
securities. 


Another  scheme  for  the  readjustment  of  the  capital 
account  of  Meux's  Brewery  Co.,  Ltd.,  is  put  forward, 
and  as  it  is  much  more  favourable  than  the  one  pro- 
posed a  few  years  ago,  it  has  every  chance  of  going 
through.  In  the  interim  the  deficiency  account  has 
been  reduced  by  ;^i6o,ooo  to  ;^64i,ooo,  and  it  is  pro- 
posed to  deal  with  this  by  reducing  the  capital  from 
one  million  to  ;^36o,ooo.  The  5,000  ordinary  shares 
will  be  cut  down  from  ;^  100  to  £2  and  the  50,000  pre- 
ference from  ;^io  to  ;£•/.  But  the  latter  are  to  receive 
generous  compensation  both  in  respect  of  arrears  of  in- 
terest and  loss  of  capital.  They  are  at  present  entitled 
to  5  per  cent,  cumulative,  but  in  future  it  wfill  be  los. 
per  share,  and  will  bring  in  the  same  return  as  before. 


Arrears  amount  to  70  per  cent.,  and  nine-tenths  of  any 
surplus  profits  after  paying  the  fixed  dividend  will  be 
allocated  to  the  holders,  the  remaining  tenth  going  to 
the  ordinary.  Moreover,  on  a  winding-up  the  pre- 
ference shares  will  be  entiitled  to  a  bonus  of  £2  P*'' 
share,  and  that  is  an  important  consideration  in  view 
of  the  possibility  of  Government  purchase.  It  is  to 
everyone's  advantage  that  the  scheme  should  go 
through,  and  we  see  no  objection,  unless  it  is  too 
generous,  a  point  which  the  preference  holders  are  not 
likely  to  take. 

The  Lace  Proprietary  Mines,  Ltd.,  fs  about  to  be 
reconstructed.  This  company,  which  was  formed  in 
1904,  owns  the  Droogefontein  and  Vlakfontein  farms  on 
the  Far  Eastern  Rand,  the  latter  being  situated  about 
five  miles  south  of  the  Springs  property.  The  company 
has  proved  the  existence  of  the  main  reef  on  both  farms 
by  borehole,  the  result  on  the  Vlakfontein  assaying  13.2 
dwts.  over  13.5  inches.  It  is  proposed  to  reduce  the 
nominal  value  of  the  existing  255,000  shares  of  £1 
each  to  los.,  and  then  to  invite  shareholders  to  subscribe 
for  the  same  number  of  new  shares  at  los.  each.  This 
will  bring  the  capital  up  to  its  present  amount  of 
^■?55,ooo,  and  provide  the  company  with  ;^i27,500  ii> 
cash  for  working  capital  purposes.  An  option  oi 
255,000  shares  at  los.  is  to  be  given  to  the  guarantors 
of  the  new  issue,  which  if  exercised  would  bring  the 
capital  up  to  ^^382, 500.  A  new  company  is  to  be 
formed  to  exploit  and  develop  the  Vlakfontein  farm, 
and  it  vAW  have  a  capital  of  ;^i, 500,000,  which  may  be 
increased  to  ;^i, 750,000  subsequently  by  the  cash 
capital  which  the  Lace  Proprietary  will  have  at  its  dis- 
posal. Other  properties  on  the  Far  Eastern  Rand  at 
present  Iving  dormant  wall  shortly  be  exploited  actively, 
for  we  learn  that  the  Mining  Ceases  Bill  will  shortly  be 
passed  through  the  Union  Legislature.  This  Bill  will 
enable  a  number  of  properties,  which  cannot  be  worked 
economically  owing  to  their  limited  area,  to  obtain  fresh 
ground.  The  Lewis  and  Marks  Anglo-American  group 
has  a  number  of  big  projects,  invoh-ing  an  expenditure 
of  6  to  7  millions,  held  in  abeyance  pending  the  pas- 
sage of  this  Bill^ 

Trade    and    Finance    After    the   War. 

Much  comment  has  been  excited  by  the  publication 
of  the  final  report  of  the  Committee  on  Commercial 
and  Industrial  Policy  After  the  War.  Amongst  Free 
Trade  papers  the  comment  is  mostly  adverse.  Yet 
the  report  is  a  painstaking  document,  which,  even 
with  all  our  Free  Trade  predilections,  we  can  advise 
readers  to  study.  It  has  been  carefully  drawn  up,  and 
the  succinct  resumes  given  of  the  position  of  our  trade 
and  industry  on  the  eve  of  the  war,  together  with  the 
discussion  of  present  circumstances  and  the  measures 
to  be  adopted  during  the  period  of  transition  after 
the  war,  as  well  as  the  chapter  on  steps  to  be 
taken  to  maintain  our  trade  active  when  peace  is 
re-established,  are  all  informative  and  sometimes 
suggestive.  There  is  not  much  that  can  be 
deemed  new,  but  the  facts  presented  have  been 
gathered  together  with  industry  and  intelligence,  and 
some  of  the  conclusions  appear  to  be  less  offensive  to 
democratic  ideals  than  critics  represent  them  to  be. 

The  Committee,  which  readers  may  recollect  was  set 
up  to  study  the  commercial  and  industrial  policy  to  be 
adopted  after  the  war,  with  special  reference  to  the 
conclusions  reached  at  the  Economic  Conference  of  the 
Allies  in  Paris,  appears  to  be  hypnotised  by  the  pre- 
sent dominance  of  Government  control  over  indus- 
tries everywhere.  Not  that  it  accepts  that  control  in 
all  circumstances,  but  even  when  tlie  formation  of  in- 
dependent committees  of  traders  is  recommended,  there 
is  always  a  hark  back  to  the  permanent  otf.cial.  Thus 
in  the  fifth  chapter,  which  deals  with  Essential  Indus- 
tries, we  have  a  discussion  relating  to  the  establish- 
ment of  a  Special  Industries  Board  to  consi.st  of  com- 
mercial and  industrial  experts  "  associated  with  what- 
ever department  of  State  is  entrusted  with  the  care  of 
the    commercial  and    manufacturing    interests    of  the 


Mav  4,  19 18. 


Zbc  Jnveetors'  IRevtew. 


433 


country,  and  represented  in  Parliament  by  the  political 
head  of  that  department."  That  is  a  modest  ambi- 
tion as  far  as  Government  control  is  concerned,  but  the 
chapter  winds  up  thus,  "  Failing  efficient  and  adequate 
output,  the  Government  should  itself  undertake  the 
manufacture  of  such  articles  as  may  be  essential  for 
national  safety."  And  we  don't  lii<e  that  at  all.  Who 
is  to  decide  what  is  and  what  is  not  "  essential  "?  In 
dealing  with  what  are  called  the  key,  or  "  pivotal," 
industries  "  which  must  have  protection  in  certain 
circumstances  " — we  see  no  "  must  "  about  it — this 
Committee  admits,  in  stultification  of  itself,  that  old- 
established  industries  may  be  superseded  and  disap- 
pear. Supposing  the  Government,  then,  with  its  usual 
short-sightedness,  ignorant  of  this  coming  decay,  puts 
the  nation's  money  and  a  portion  of  its  energies  into 
the  propping  up  of  a  perishing  industry,  what  is  going 
to  happen?  Who  will  make  the  loss  good?  There  is 
far  too  much  of  this  let-us-lean-on-the-oflficial  spirit 
now  abroad,  and  we  must  get  out  of  it,  if  we  are  to 
survive.  This  Committee  is  of  another  opinion,  and 
its  recommendations  will,  we  trust,  be  ignored. 

Naturally,  the  tariff  suggestions  have  been  pounced 
upon  and  condemned  by  the  Independent  and  intelli- 
gent section  of  public  opinion.  We  are  not  surprised. 
They  are  evidently  compromise  proposals,  and  clumsy 
at  that  ;  a  product  of  weak  thinking  strongly  tinged 
by  class  selfishness.  The  essence  of  the  matter  is  to 
be  found  in  the  254th  paragraph  of  the  report  under 
"Conclusions."  In  summary,  the  most  essential  of 
these  conclusions  are  : — Producers  here  are  entitled  to 
require  from  the  Government  "  protection  in  the  home 
market  against  dumping."  Key,  or  pivotal,  indus- 
tries should  be  maintained  in  this  country  "  at  all 
hazards  and  at  any  expense."  "  No  ordinary  economic 
rules  apply  to  the  situation  of  these  minor 
"but  important  industries,"  the  Committee  informs  us, 
"  but  they  will  be  necessarily  subject  to  Government 
supervision."  As  regards  other  industries,  "care- 
fully arranged  protection  "  is  recommend'ed,  on  the 
pretext  that  production  must  be  maintained  either  for 
reasons  of  national  safety  or  on  the  ground  that  it  is 
undesirable  that  any  industry  of  real  importance  to  our 
■economic  strength  and  well-being  should  be  allowed 
to  be  weakened  bv  foreign  competition.  There  is 
more  of  like  sort  which  we  need  not  bother  with. 

Preferential  treatment  is  recommended  to  be  applied 
to  British  Oversea  Dominions  and  Possessions  in  re- 
spect of  any  Customs  duties  now  or  hereafter  to  be 
imposed  in  the  United  Kingdom.  Consideration,  the 
report  goes  on,  "  should  also  be  given  to  the  expe- 
•diency  of  other  forms  of  Imperial  preference."  And 
■in  the  delightful  jumble-headed  fashion  of  these  ama- 
teur philosophers,  when  referring  to  our  present  Allies 
and  neutrals,  the  naive  suggestion  is  made  that  "  the 
present  opportunity  should  be  taken  to  endeavour  to 
promote  our  trade  with  the  Allies,  and  consideration 
should  be  given  to  the  possibility  of  utilising  for  pur- 
poses of  negotiation  with  them  and  with  present 
neutrals  any  duties  which  may  be  imposed  in  accord- 
ance with  the  principles  which  we  have  laid  down 
:above."    "Principles"?   Where  are  they  ? 

We  give  merely  the  gist  of  the  tariff  proposals,  but 
enough  has  been  said  to  indicate  how  hopeless  the 
muddle  still  is  in  the  minds  of  business  men  with  re- 
gard to  their  task  and  their  duty  after  the  war.  As  we 
turned  over  the  report,  while  recognising  the  pains- 
taking conscientiousness  with  which  it  had  been  put 
together,  the  feeling  stole  into  the  mind  that  after  all 
we  are  not  yet  ready  to  see  the  war  ended,  for  if  it  is 
not  to  bring  a  more  masterful  feeling  of  mutual  rela- 
tionship, of  brotherhood,  between  man  and  man  in 
this  country,  between  class  and  class,  here  and  every- 
where, then  will  these  good  men  please  tell  us  what 
we  have  been  fighting  for?  Why  are  we  submitting  in 
grief  inexpressible  to  the  loss  of  thousands  of  the 
country's  best  men  every  day  that  passes,  and  why 
are  France,  Italy,  and  Belgium  submitting?  We  see 
our  wealth  being  devoured  beyond  hope  of  recovery  in 
this  cataclysmic  war,  and  rhaunder  along  as  if  it  all 
meant  nothing,    that  once  past   it  would   leave  us    at 


liberty  to  be  as  selfish  as  before.  These  worthy  gentle- 
men and  thair  brethren  do  not  seem  at  all  to  realise 
what  lies  ahead  for  us.  They  go  on  in  the  old  grooves, 
and  talk  about  making  "  concessions  "  to  labour  here, 
granting  assistance  to  this  industry  and  the  other,  of 
the  State  doing  this  and  preventing  that,  of  barriers 
to  be  erected  in  their  interests,  of  this  and  the  other 
point,  all  as  if  there  were  none  to  be  thought  about 
except  themselves.  They  plainly  imagine  that  things 
will  go  on  after  the  war  much  as  they  did  before,  that 
the  land  speculator  and  the  company  promoter — 
' '  bubble  ' '  and  other — will  have  the  same  freedom  to 
prey  upon  his  fellowman,  and  the  monopolist  in  all 
ranks  of  the  plutocracy  remain  still  in  a  position  to 
"  sweated  "  labour,  and  all  the  markets  of  the  world  re- 
main as  ready  to  receive,  and  as  able  to  pay  for,  our 
productions  as  before  the  war.  The  spirit  of  the  re- 
port is  selfish  throughout,  and  the  outlook  as  short- 
sighted as  it  is  narrow. 

The  world  is  not  going  to  be  like  this  at  all  when 
war  ends.  It  will  then  be  a  world  denuded  of  its  man- 
hood to  an  extent  not  yet  realised,  or  even  suspected, 
and  therefore  crippled  in  its  recuperative  capacity  for 
certainly  the  ten  succeeding  years.  It  will  be  a  world 
also  stripped  of  its  available  property  and  sunk  to  the 
eyes  in  debt.  We  ourselves,  should  the  war  last  to 
the  end  of  this  fiscal  year,  as  in  some  form  or  other  it 
probably  will,  will  have  to  shoulder  a  debt  that  will  cost 
for  some  considerable  period  at  least  ;^30o,oc>o,ooo  a 
year  as  first  charge  on  the  nation's  labour.  It  is  the 
fashion  of  Chancellors  of  the  Exchequer  to  reckon  off 
from  the  gross  total  of  the  war  debt — some 
;^7 ,000,000,000  gross  it  will  by  then  be — the  money 
we  have  lent  to  our  Dominions  and  Allies  ;  but  we  dare 
not  delude  ourselves  with  the  hope  that  any  one  of 
these  debtors  will  be  in  a  position  to  repay  this  money 
after  the  war,  or  even  to  pay  interest  upon  it.  Can 
Russia  do  so,  or  Serbia,  or  Greece,  or  our  Australian 
Colonies,  or  even  Canada,  let  alone  Belgium?     No,  not 


New  Zealand. 


A  Wealthy  Country,  Splendid  Climate,  Fertile 
Soil,  Plenty  of  Water. 

An  Ideal  Country  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  populatioa,  has  an 
annual  export  of  raw  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IRON,  TIMBER, 
GUM.  GOLD  AND  SILVER.  Total  yield  of  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  have  been  advanced 
by  Government  to  Farmers  and  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 

The  Railways,  3,000  miles.  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State. 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  new 
country.  New  Zealand  offers  solid  advantages. 
Excellent  Steamship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw^  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Shipping  Company, 
Limited,  and  the  Federal  and  Shire  Lines. 


Full  information  is  supplied  fiee  by 

THE  HIGH  COMMISSIONER  FOR  NEW  ZEALAND. 

413^16,  STRAND,  W.C.  2. 


434 


XTbe  5nve6tor6*  IRevlew. 


May  /\,   1918. 


one  of  them  within  a  measurable  date.  We  cannot 
reckon  on  any  early  assistance  from  those  to  whom  we 
have  lent  the  means  to  enable  them  to  sustain  their  part 
in  this  civilisation-obliteratinj,'  struggle.  For  a  time, 
now,  as  after  the  Napoleonic  wars,  the  whole  respon- 
sibility must  fall  on  us. 

That  is  not  all.  Not  only  shall  we  owe  an  unprece- 
dented mass  of  debt  "  to  ourselves,"  as  it  is  the  fashion 
to  say — although  what  sensible  difference  that  makes 
to  the  distress  or  overburden  laid  upon  the  lower  strata 
of  society  we  do  not  know — but  we  shall  be  heavily  in 
debt  abroad,  to  the  United  States  especially,  and  the 
consequence  will  be  that,  instead  of  being  able  as  be- 
fore the  war  to  sit  with  folded  hands  and  allow  tribute 
in  the  form  of  foreign  produce  sent  in  payment  of  debt 
interest  to  roll  in  and  keep  us  comfortable,  we  shall 
have  to  work  hard  to  find  the  means  of  paying  the  in- 
terest owed,  for  a  time  probably  to  export  more  than 
we  import.  We  have  parted  with  hundreds  of  millions 
of  our  foreign  investments  in  addition  to  the  actual 
money  borrowed  of  foreigners,  and  will  therefore  be 
all  round  crippled  and  impoverished  when  peace  comes. 

To  talk  of  "adjusting  commercial  interests"  by 
means  of  a  tariff,  of  "protecting"  ourselves  from 
"dumping"  by  means  of  special  duties,  of  differen- 
tiating our  treatment  of  neutrals  and  Allies,  of  States 
in  the  British  Dominions  receiving  favoured  treatment 
at  the  expense  of  the  rest  of  the  world,  all  which,  if 
attempted,  would  mean  added  misery,  the  laying  upon 
the  shoulders  of  the  nation  the  cost  of  maintaining  a 
swarm  of  tax-collectors,  spies,  gaugers,  appralisers  and 
police  at  the  ports,  is  surely  to  exhibit  a  shortsighted- 
ness, an  obliviousness  to  facts,  marvellous  to  behold  at 
this  fateful  hour.  There  is  in  sober  truth  only  one 
thing  that  can  save  us,  and  that  is  systematised — unre- 
mitting labour,  joined  to  the  utmost  possible  economy  in 
administration.  To  use  the  slang  of  commerce,  we 
have,  alas  for  it  !  "pooled  "  the  lives  of  the  nation  in 
this  deadly  conflict,  and  the  devotion  of  our  men,  of  the 
men  of  France  and  of  all  our  other  Allies  will  enable 
us  to  bring  the  war  to  a  triumphant  conclusion.  When 
it  is  over  the  nation  must  "pool  "  its  resources  of  all 
kinds,  abolish  the  profiteer  of  all  grades  and  types  of 
mind,  and,  man  to  man,  stand  loyally  and  helpfully  to- 
gether, content  with  little  as  individuals  so  be  that  the 
common  good  may  be  attained.  There  is  nothing  at  all 
of  that  spirit  of  self-abnegation  in  this  final  report  of 
Lord  Balfour  of  Burleigh's  Committee,  and  that  it 
should  be  thus  sterile  is  disappointing  to  an  extent  we 
cannot  define. 


Are   Treasury   Bills   Liable  to  Income- 
tax  P 

(Bv  A  Correspondent.) 

A  novel  income-tax  question  of  great  importance  has  been 
raised  :   Do  Treasury  bills  yield  taxable  income? 

As  soon  as  the  question  is  stated,  it  is  obvious  that  it  affects 
many  millions  sterling,  not  merely  in  the  sense  that  the 
capital  reaches  colossal  figures,  but  that  the  actual  amount  of 
income-tax  at  stake  is  enormous.  Of  course,  the  officials  main- 
tain the  official  view,  as  is  most  fitting ;  but  most  eminent 
counsel  have  advised  that  in  many  cases  no  tax  is  payable. 
These  opinions  would  result  in  immunity  from  tax  in  the  case 
of  individual  investors. 

For  this  purpose  the  holders  of  these  bills  may  be  divided 
into  three  groups.  The  first  is  banks,  discount  houses,  and 
investment  companies,  taxed  not  on  "  income,"  but  on 
"  profits  " ;  for  them  there  is  no  hope.  The  purchase  of  such 
securities  is  part  of  their  business,  and  the  gain  on  realisation 
is  in  these  cases  taxable,  as,  indeed,  for  that  matter  is  all 
appreciation  on  the  turning  over  of  any  investments. 

The  second  group  is  companies  taxed,  not  on  "  profits,"  but 
on  "  income."  This  embraces  most,  if  not  all,  life  insurance 
companies.  Their  holdings  of  Treasury  bills  are  immense. 
The  opinions  of  the  counsel  referred  to  would  result  in  such 
cases  escaping  the  tax. 

The  third  and  last  group  is  the  private  investor.  He  or  she 
■will  stand  or  fall  with  the  second  group,  except,  indeed,  that  it 
is  sugge.sted  that,  even  if  that  second  group  should  have  to 
pay,  an  individual  who  has  had  one  or  two  isolated  transac- 
tions in  these  securities  would  be  able  to  maintain  a  separate 
case  for  immunity. 

Interest  or  Discount. 
If  tax  is  leviable,   it  must  apparently  be  on   alleged   interest 
or  discount.     These  two  are  not  the  same,  either  arithmetically 
or  in  an  ordinary  legal  sense,  or  under  the  Income  Tax  Acts. 


Now,  can  it  be  said  that,  if  I  buy  a  £1,000  bill  at  12  months 
for  ;^95o  I  am  receiving  £$0  interest?  Of  course,  there  is  a 
pecuniary  gain,  or  advantage,  or  profit.  Equally  there  is  an 
interest  calculation  at  the  bottom  of  the  transaction. 

Hut  these  are  not  the  questions.  The  only  question  here 
is  :  Does  the,  investor  receive  interest  from  his  debtor  ?  He 
certainly  gives  no  receipt  for  interest.  The  document  con- 
tains no  covenant  for  or  reference  to  interest.  Interest  on 
what?  Is  it  on  £^$0  or  on  ^1,000?  When  is  it  suggested 
that  the  alleged  interest  is  received  by  the  purchaser — when  he 
pays  the  ;^<j5o,  or  when  he  receives  the  ;{^i,ooo?  We  suggest 
the  view  that,  however  the  final  question  of  liability  may  be 
determined,  there  is  no  interest,  and  that,  therefore,  there  can 
be  no  tax  on  interest. 

If  that  be  so,  the  result  in  the  second  and  third  groups  of 
investors  is  that  either  tax  is  not  payable  or  it  is  payable  on 
discount.  Now,  it  is,  of  course,  true  that  the  Acts  contain 
a  special  head  of  charge  in  the  form  of  "  profit  from  dis- 
counts." 

But  is  the  operation  of  investing  money  in  a  British 
Treasury  bill  correctly  described  by  saying  that  the  inve-stor 
has  discounted  the  bill  for  the  Government?  As  to  that,  we 
notice  that  at  least  some  banks  include  these  investments  under 
the  heading  of  "  bills  discounted  "  in  their  balance-sheets. 
If  commercial  and  business  evidence  were  unanimous  to  the 
effect  that  that  is  a  correct  mode  of  statement,  it  would  no 
doubt  go  far  to  solve  the  question.  We  shall  not  be  expected 
to  advise  here,  or  to  commit  ourselves  to  one  view  or  another. 

It  is  sufficient  that  we  raise  this  novel  "  point,"  and  state 
that  learned  counsellors  have  advised  that  the  purchase  ol 
these  bills  is  not  the  class  of  transaction  covered  by  the  taxa- 
tion of  "  profits  "  from  discounts. 

Different  Forms  of  Investment. 

Treasury  bills  are  sometimes  taken  direct  from  the  Bank  of 
England  on  the  original  issue,  and  sometimes  they  are  pur- 
chased in  the  market  during  their  currency.  Until  the  pre- 
sent writer  heard  of  the  learned  opinions,  his  own  view  was 
that  in  the  latter  case  it  was  more  than  doubtful  whether 
income-tax  could  be  claimed,  but,  like  most  other  people,  he 
assumed  that  it  would  have  to  be  paid  in  the  former  case. 

This  distinction  certainly  is  not  supported  by  the  opinions. 
If  I  buy  from  the  present  holder  a  twelve  months'  Treasury 
bill  which  has  six  months  yet  to  run,  at  the  end  of  which  time 
[  get  back,  say,  ^^25  more  than  I  paid,  how  does  that  differ,  in 
either  principle  or  form,  or  even  detail,  from  the  purchase  at 
a  "  discount "  of  an  endowment  life  policy,  or  a  company  de- 
benture, or  a  War  Bond,  or  terminable  War  Stock? 

In  none  of  these  four  cases  could  it  be  suggested  that  the 
present  discount  or  finil  appreciation  was  taxable.  Why,  then, 
should  it  be  otherwise  in  the  case  of  a  Treasury  bill?  Take 
the  National  War  Bonds;  they  are  issued  at  par,  and  repaid 
with  a  bonus  or  premium.  Yet  no  one  will  suggest  that  the 
excess  over  par  is  or  will  be  taxable.  It  would  make  no  dif- 
ference if  these  bonds  had  been  issued  at  a  discount  and  re- 
payable at  par,  which,  indeed,  is  just  the  form  in  the  case  of 
War   Stock. 

RESin,TS   TO   the   Taxp.wee — 

If  the  profit  is  not  income  for  tax  purposes,  the  results  to  the 
investor  are  two-fold.  In  the  first  place,  he  escapes  income- 
tax  on  what  would  have  been  the  income  from  the  capital  sums 
so  invested  if  they  had  been  invested  in  some  other  and  more 
usual  form.  In  the  second  place,  he  may  become  entitled  to  a 
lightening  of  taxation  on  his  other   income. 

This  latter  may,  according  to  his  financial  position,  take 
several  shapes.  Thus  he  may  escape  sup)er-tax.  He  may  be- 
come entitled  to  the  benefit  of  rates  less  than  the  standard  5s. 
per  £  on  his  income,  earned  or  unearned,  or  both.  If  his 
taxable  figure  falls  to  ;^"oo  or  less,  he  will  become  entitled  to  a 
(or  a  larger)  scale  abatement,  and  to  the  abatement  for  children. 
In  an  extreme  case  he  might  be  exempt. 

— And  to  the  Exchequer. 

It  may  be  said  that  the  above  results  would  never  be  allowed, 
for  if  the  Courts  sustained  counsel's  opinions,  there  would  be 
legislation.  Even  if  so,  it  would  scarcely  be  m.ide  retrospec- 
tive. But  it  is  to  be  remembered  that  Treasury  bills  have  short 
currencies,  and  even  without  any  chsmge  in  the  law  the  Ex- 
chequer would  in  future  years  lose  less  than  might  be  thought ; 
probably  nothing  at  all. 

The  reason  is  that,  if  these  bills  carried  the  privilege  of  tax 
exemption,  their  attractiveness  would  be  incre.ised,  and  they 
would  be  saleable  by  the  bank  at  a  better  price.  What  was 
lost  on  tax  would  be  squared  on  discount. 


Profits  and  Profit-Sharing  in  Italy. 

During  a  recent  visit  to  Bologna,  General  Dallolio,  the 
Italian  Minister  of  Munitions,  speaking  of  the  amazing  indus- 
trial progress  accomplished  by  Italy  during  the  war,  made  the 
following  statements: — While  at  the  close  of  1915  we  had  but 
125  auxiliary  plants  employing  115,000  men,  at  the  end  of  1917 
they  had  grown  up  to  3,800,  with  more  than  800,000  hands. 

Small  industries  were  prevalent  in  Italy  before  the  war  : 
statistics  gave  the  number  of  221,513  concerns  employing  about 
10  people,  aid  onlv  22,413  employing  more.  The  average  and 
big  industries  employed  but  one  million  and  a-half  workmen,  a 
very  small  number  in  proportion  to  the  population. 

But  present  conditions  have  greatly  changed.  The  war  has 
enabled  a  group  of  industries  to  realise  large  gains,  and  conse- 
quently to  reacii  a  considerable  development.    One  of  our  best 


May 


1Q18. 


Zbc  Jnveetote'  IReview* 


435 


economists,  Gino  Borgatta,  in  an  article  on  joint  stock  com- 
panies, says  that  in  1916  the  following  companies  have  attained 
nett  profits  above  the  15  per  cent.  : — 


CompHnies. 


Chemicals 

Food   

Sicel  and  iron   . 
Flax  and  hemp. 

Wool 

Insurances 

S'.;ipping  

Motorcars     ... 
Leather,  boots  . 

Texiile    

Jute. 


Number. 

Capital. 

Nett  Proat. 

Mln.  Lire. 

Mln.Lire. 

Percent. 

102 

286.7 

44.2 

15-39 

108 

275.028 

413 

1503 

42 

250.5 

41.4 

16.55 

10 

23.7 

38 

16.35 

19 

546 

10.2 

18.70 

13 

40.8 

7-5 

18.48 

22 

188. 1 

49-5 

26.31 

17 

49.04 

150 

30.50 

II 

168 

5-8 

3467 

12 

28.1 

8.78 

31-24 

3 

16.3 

6.87 

42.07 

No  definite  figures  are  yet  available  as  to  the  profits  of  each 
sing'e  concern  since  the  Decree  of  February,  1917,  forbidding 
commercial  companies  to  pay  to  the  shareholders  more  than 
the  8  per  cent,  unless  they  had  already  done  so  during  the  last 
three  years.  We  can,  however,  infer  the  financial  result  from 
the  tax  on  war  profits  :  these  have  yielded  to  the  State 
461,200,552  lire,  corresponding  to  a  revenue  of  1,111,538,994 
lire.  These  figures  were  published  at  the  end  of  Septembei, 
1917;  but  the  whole  amount  is  expected  to  reach  about  600 
millions,  equal  to  a  taxable  income  of  one  milliard  and  a-half. 

Joint  stock  companies  in  Italy  at  the  beginning  of  1914  were 
reckoned  to  be  2,200,  representing  about  7.1  milliards  of  in- 
vested capital.  To  give  an  idea  of  their  development  during 
this  time  of  war,  it  will  be  enough  to  say  that  in  the  last  two 
quarters,  1917,  capital  has  increased  by  861,279,286  lire.  This 
shows  that  the  money  invested  in  joint  stock  companies  has 
surpassed  the  sum  ascertained  as  war  profits  up  to  the  present. 

A  very  important  reform  has  been  put  into  practice  by  the 
manufacturers  of  Ferno.  The  managing  council  has  decided 
to  give  each  of  the  workmen  a  percentage  on  the  net  yearly 
profits  in  equal  proportion  to  the  .sum  assigned  to  capital.  The 
workmen  will  share  the  nett  profits  to  the  extent  of  the  total 
sum  of  their  yearly  wages  on  equal  terms  with  capital,  and 
before  any  sum  has  been  .subtracted  as  dividends  upon  that 
capital.  The  individual  share  to  each  workman  will  be 
awarded,  according  to  5  definite  rule  issued  by  the  manager, 
in  direct  proportion  to  the  wages  of  a  whole  year.  Accordin',' 
to  this  rule  it  has  been  arranged  that  a  dividend  of  6  per  cent, 
hiving  been  assigned  to  the  joint  stock  capital  of  the  company, 
the  same  dividend  shall  be  awarded  to  each  workman  as  his 
right  to  profits  in  proportion  to  the  amount  reached  by  his 
fortnightly  wages  earned  during  the  whole  year. — From  our 
Italian  Corres-pondertt. 

The   Canadian   Budget. 

Mr.  MacLean,  Acting  Minister  of  Finance,  presented  his 
Budget  in  the  Dominion  House  of  Commons  on  Wednesday,  and 
w.is  able  to  give  an  excellent  account  of  the  finances.  Ihe  re- 
vtnue  for  the  fi.scal  year  ended  March  31  was  ^f 5 1 ,600,000,  taking 
the  dollar  at  the  convention  five  to  the  £.  i'his  was  an  in- 
crease of  ^5,200,000  on  the  preceding  year.  Civil  expenditure 
absorbed  ;{,34,boo,ooo,  that  including  the  payment  of  ;,^9,ooo,ooo 
in  interest  and  ;r^5,ooo,ooo  to  the  Canadian  Northern  Kailway, 
as  well  as  ;<^i, 500,000  to  the  Grand  Trunk  Pacific.  There  was 
also  capital  expenditure  to  the  amount  of  ^6,000,000,  raising 
the  total  outlay  of  the  civil  Government  to  ;^'4o,6oo,ooo.  That 
left  ;^i  1,000,000  to  be  devoted  to  war  costs.  These  war  costs 
amounted  last  year  to  about  ^^69, 000, 000,  of  which  ;£33,400,ooo 
h.id  been  spent  in  Canada,  and  raised  the  total  cost  of  the  war 
to  the  Dominion  to  ;^  175,600,000,  or  $878,000,000.  The  nett  debt 
of  Canada  is  now  approximately  ;^'24o,ooo,ooo.  During  the  year 
^'22,600,000  of  the  revenue  has  been  devoted  to  war  expenditure 
over  and  above  the  demands  for  interest  and  pensions. 

In  the  current  year  the  war  expenditure  is  expected  to  be 
again  up  by  ^5,000,000,  but  the  expenditure  on  capital  account 
has  been  materially  reduced,  allowing  for  the  money  required 
to  carry  out  the  soldiers'  land  settlement  scheme  and  to  rebuild 
Halifax.  The  total  expenditure  will  be  met  up  to  July  next 
from  the  unspent  portion  of  the  Victory  Loan  and  by  the  tem- 
porary is.sue  of  Treasury  bills. 

Some  changes  are  made  in  taxation,  but  none  of  great  im- 
portance. A  war  surtax  upon  incomes  over  ^1,200,  running 
from  5  per  cent,  on  incomes  between  $6,000  and  $10,000  to  25 
per  cent,  on  incomes  over  $200,000,  is  to  be  imposed,  and, 
apparently,  besides  the  super-tax  in  exi.stence  upon  incomes 
up  to  $50,000,  or  j^io,ooo,  incomes  of  $1,000,000,  or  ;^20o,ooo, 
will  pay  50  per  cent.  The  Excise  duty  on  tobacco  is  increased 
by  5d.  per  lb.  to  lod.,  a  dollar  is  added  to  the  duty  on  each 
thousand  cigars,  making  it  $6,  and  the  cigarette  duty  is  doubled, 
making  it  also  $6  per  thousand,  while  on  foreign  raw  leaf 
tobacco  the  duty  rises  from  28  to  40  cents,  or  to  is.  8d.  per  lb., 
and  on  stemmed  foreign  tobacco  from  42  cents  to  60  cents.,  or 
to  2S.  6d.  per  lb.  A  tax  of  10  cents  per  lb.  on  tea  is  also  men- 
tioned, and  the  duty  on  coffee  is  to  be  raised  to  5  cents  for 
British  and  7  cents  for  other  kinds.  As  the  result,  the  revenue 
is  estimated  at  $270,000,000,  or  ;^54,ooo,ooo  for  the  current 
year,  and  the  total  expenditure  is  put  at  $980,000,000,  or 
,^196,000,000,  of  which  ;^65,ooo,ooo  is  provided  by  advances 
from  the  Imperial  Government  to  Canada,  including,  we  pre- 
sume, ;f6o,ooo,ooo  advanced  from  the  home  Government 
to  pay  Canadian  troops  abroad,  but  from  all  sources  only 
.^740,000,000  will  be  available.  Consequently,  to  balance  the 
Budget,  ^56,000,000,  or  $280,000,000,  will  have  to  be  raised  by 
loan. 


THE   JOHANNESBURG  CONSOLIDATED  INVEST- 
MENT COMPANY,  LIMITED, 

announces  that  owing  to  the  irregularity  and  delay  in  the  mails  the  issue  of  the 
quarterly    reports    to  the    Shareholders    of    the    Mines    of    the 

Barnato  Group  is  discontinued  for  the  time  being.    In  place  thereof  the 
following  cabled  Summary  of  the  quarter's  operations  is  advertised  in  the  Press. 
10  and  II,  .\uslin  Friars,  London,  E.G.,  29th  .April,  1918. 

GOVERNMENT     GOLD     MINING     AREAS   (MODDERFONTEIN) 

CONSOLIDATED.   LIMITED. 

Report  for  Quarter  ended  31st  March,  1918.  . 

Per  ton,  based  on 
Tons  Cru5hed,  320,000.  Tonnage  Crushed. 

Total  Working  Revenue £478,537    ..     £1    911 

Tolal  Working  Costs  300,936    . .       o  18  10 

Working  Profit       £177,601     ..     £011     1 

Sundry  Revenue        1,627 

Tolal  Profit  for  the  quarter      . .        . .        £179,228 

No  allowance  has  been  made  in  the  at)Ove  for  the  Government's  share  of  the 
profits.    The  expenditure  on  Capital  Account  amounted  to  £13,545. 

As  compared  with  the  previous  quarter,  crushing  was  increased  by  10,100  tons. 
Working  costs  and  the  grade  of  ore  milled  were  practically  the  same  as  the 
previous  quarter.    The  Gross  Profit  w.i  s  £3,885  higher  than  last  quarter. 

The  payable  Ore  reserves  were  increased  by  370,000  tons  to  7,390.000  tons. 

Excavations  have  been  started  for  extension  of  reduction  plant,  and  f  radi- 
cally all  the  material  has  been  purchased. 

VAN     RYN     DEEP,     LIMITED. 
Report  for  Quarter  endeJ  31st  March,  1918. 

Per  ton    based  on 
Tons  Crushed,  130,200.  Tonnage  Crushed. 

Total  Working  Revenue        £288,364    ..     £243 

Total  Working  Costs  130,177    ..       100 

Working  Profit  £138,187    ..£143 

Sundry  Revenue  2,995     . . 

Total  Profit  for  quarter £161,182 

No  allowance  has  been  made  in  the  above  for  Colonial  taxation.  The 
expenditure  on  Capital  Account  amounted  to  £5,487. 

As  compared  with  the  previous  quarter  crui-hiDij  was  decreased  by  3,860  tons. 
Costs  were  7d  per  ton  higher.  T  e  recovery  value  shows  an  increase  of  iid. 
perto'i.     I  he  Gro^s  Profit  was  £1,928  le«s  thanlast  quarter. 

Good  progress  h  s  been  made  with  the  additions  to  the  Reduction  Plant ; 
excavatif  ns  completed.  All  necessary  plant  and  material  secured.  Erection 
will  be  commenced  at  an  early  date. 

CONSOLIDATED     LANGLAAGTE     MINES,     LIMITED. 
Report  for  Quarter  ended  31st  March    1918. 

Per  ton,  based  on 
Tons  Crushed,  128,450.  Tonnage  Crushed 

Total  Working  Revenue                     ..        £i59,933     •■        £'        4" 
Total  Working  Costs 119,152     ..  o      18    7 

Working  Profit  £40,781     ..  064 

Sundry  Revenue 57r     .  • 

Total  Profit  for  quarter        ..         ..  £41,352 

No  allowance  has  b-'en  made  in  the  above  for  Colonial  taxation.  The  expen- 
diture on  Capital  Account  amounted  to  £3,352  and  Debenture  interest  £1,719- 

As  compared  with  the  previous  quarter  crushing  was  decreased  by  700  tons. 
Costs  were  sd.  pec  ton  lower.  The  recovery  value  shows  a  decrease  of  is.  2d. 
per  ton     The  Gross  Profit  was  £5,202  less  than  last  quarter. 

The  .Vest  Incline  Shaft  was  sunk  42  feet  to  a  total  depth  of  3,752  feet. 

Operations  adversely  affected  by  abnormal  rains  necessitating  additional 
expenditure. 

WITWATERSRAND  GOLD  MINING  COMPANY,  LIMITED. 

Report  for  Quarter  ended  31st  March.  1918. 

Per  ton,  based  on 
Tons  Crushed,  105,200.  Tonnage  Crushed. 

Total  Working  Revenue           ..         ..        £124,723     ..         £1    3    8J 
Total  Working  Costs 101,214     ..  o  19    3 

Working  profit £23.509    ••         £0    4    5J 

Sundry  Revenue 4.434    . . 

Total  Profit  for  quarter        . .        . .         £27.943 
No  allowance  has  been  made  in  the  above  for  Colonial   taxation.    The  ex- 
penditure on  Capit-1  .\ccount  amounted  to  £1.924. 

As  compared  with  the  previous  quarter,  crushing  was  increased  bv  585  tons. 

Costs  were  is.  4d.  per  ton  higher.    The  recovery  value  shows  a  decrease  of 

IS.  per  ton.    Gross  profit  was  £12,498  less  than  last  quarter. 

The  Southern  Incline  Shaft  was  sunk  14  teet  to  a  total  depth  of  2,808  feet. 

Operations  adversely  affected    by  abnormal   rains   necessitating   additional 

expenditure. 

RANOFONTEIN  CENTRAL  GOLD   MINING  CO..  LTD. 
Report  for  Quarter  ended  3 1  st  March.  19  18. 

Per  ton,  based  on 
Tons  Crushed,  445,coo.  Tonnage  Crushed. 

Total  Working  Revenue £5'7,836    ■•£138* 

Total  Working  Costs  483,518    ..       1x8* 

Working  Profit  £44,3'8    ..     £0    3    o 

Sundry  Revenue        2.815 

Total  Profit  for  quarter      ..         ..  £47,133 

No  allowance  has  been  made  in  the  above  for  Colonial  taxation. 
The  expenditure  on  Capital  Account  amounted  to  £79,152,  and  Debenture 
Interest  £38,106. 

As  compared  with  the  previous  quarter  crushing  was  decreased  by  55,900 
tons.    Cists  were  2S.  2jd.  per  ton  higher,     The  recovery  value  shows  an 
increase  of  3j'l .  per  ton. 
The  Gross  Profit  was  £54,072  loss  than  last  quarter. 
Sha  t  sinking  accomplished  totalled  755  feet. 

Operations  here  were  much  more  severely  hampered  than  on  the  other  Mines 
bythe  heavy  rains.  Previous  extensive  ou  crop  workings  rendered  the  lower 
levels  exceptionally  liable  to  flooding.  Pumping  and  baling  charges  extremely 
heavy. 

LANGLAAGTE  ESTATE  AND  GOLD  MINING  CO.,  LTD. 
Report  for  Quarter  ended  31st  March.  1918. 

Per  ton,  based  on 
Tons  Cru=hed,  117,320.  Tonnage  Crushed. 

Total  Working  Revenue £138,946     ..  £138 

Total  Working  Costs        117.908    ..  '    0     ■ 

Working  Profit £21,038    ..  £0    3    7 

Sundry  Rev  nue 376 

Total  Profit  for  quirler £2i.4J4 

No  allowance  has  been  made  in  the  above  f  r  Colonial  taxation. 

The  expenditure  on  Capital  Account  amounted  to  £6,728. 

As  compar»d  with  the  previous  quarter  crushing  was  decreased  bv  g.340  tons. 

Costs  were  2s.  ijd.  per  ton  higher.  The  recover'  value  shows  an  increase  01 
IS.  6id.  per  ton.    The  Gross  Profit  was  £s,348  less  than  last  quarter.  .  , 

Operal  ons  adversely  affected  by  abnormal  rains  necessitating  additional 
expenditure. 


436 


Zbe  investors'  IReview. 


May  4,   1918. 


SGOniSH  UNION  &  NATIONAL 

INSUMNCE  COMPtNy. 

KSTABLI8HED     1824. 

ASSETS    exceed    £11,000,000. 

FIRE  (INCLUDING  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  GLASS  BREAKAGE,  TRANSIT  OF 
SECURITIES,  FIDELITY,  PROPERTY  OWNERS'  LIABILITIES,  HORSE  DRIVING 
ACCIDENTS,  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh;  35,  St.  Andrew  Square. 
London  :S,  Walbrook,  E.G.  4,  and  4,  St.  James'  St.,  S.W.  1. 

P-ar-w-  .^  ■   ■  nnrr  "W  "^^^  assurance  company 
Ell  V-Xla   JCW     M.  .^^m  LIMITED, 

Estahi.ished  1782. 

Head  Office:  PHSNIk  HOUSE,  KING  WILLIAM  STREET,  LONDON,  E.C.  4. 
Total  Assets  Exceed  43X7,000,000. 
Claims  Paid  Exceed  £100,000,000. 

Chairman— Rt.  Hon.  LORD  GEORGE  HAMILTON,  P.C,  G.C.S.l 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

Loss  of  Profits  following  Fire,  Workmen's  Compensation,  Fidelity  Guarantee, 
Burglary,  Trustee  and  Executor,  &c. 
Prospectuses  and  Proposal  Forms  may  be  obtained  on  application  to  any  of 
the  Branch  Offices  or  Agencies,  or  to  the  Head  Offices 

General  Manager        -        SIR  GERALD  H.  RYAN. 


LIFE  ASSURANCE  AT  MINIMUM  RATES. 

A  Plan  of  Assurance  Specially  Adapted  for  Present  Times. 
For  particulars  address  the 

GRESHAM  LIFE  ASSURANCE  SOCIETY, 

St.  Mildred's  House,  Poultry,  E.C, 


FOUNDED      1048- 


UTD., 


FUNDS     £10,SOO.OOO. 


THE  GRESHAM  FIRE  AND  ACCIDENT  INSURANCE 

SOCIETY,  LIMITED, 
Transacts  all  classes  of  Fire  and  Accident   Business. 

Chief  Office:    St.  Mildred's  House,  Poultry,  London,  E.C. 


TLbe  3^nv?e6tors'  1Rev?iew. 

Money    and   Credit    Notes. 


the  war  from  British  firms.  This  is  the  first  of  the  British 
Trade  Corporation's  activities  that  has  .so  far  been  revealed. 

Further  details  are  now  available  regarding  lie  terms  of  the 
Swiss  credit  for  Great  Hritain,  to  which  we  referred  some 
weeks  ago.  By  this  agreement,  a  Swiss  financial  group  con- 
senjts  to  make  monthly  advances  to  a  British  financial  group, 
the  amount  of  these  advances  to  be  regulated  by  the  quantities 
of  merchandise  arriving  in  European  ports  for  Swiss  destina- 
tions. Each  monthly  advance  will  not  exceed  lo  million 
francs,  and  the  arrangement  covers  the  ten  months  ending  on 
January  31.  The  credits  will  be  secured  by  the  deposit  of 
securities  of  neutral  countries  which  have  been  mobilised  by 
the  American  Dollar  Securities  Committee.  The  loans  will 
have  to  be  redeemed  in  three  years. 

The  principal  movement  in  the  foreign  exchange  market  this 
week  has  been  the  improvement  in  Spanish,  the  rate  being  35 
[5&ints  in  our  favour  on  the  week  at  17.20  pesetas  to  the  ;X)und 
sterling.  This  advance  is  the  outcome  of  an  agreement  signed 
last  week  by  a  consortium  of  Spanish  banks  and  by  P'rench  and 
United  States  banks.  The  Spanish  banks  have  .agreed  to  grant 
a  credit  to  the  French  and  American  banks  of  50  million 
pesetas  (/.'2,ooo,ooo),  the  consortium  including  the  principal 
banking  firms  of  Madrid,  Bilbao,  and  Barcelona.  Of  course, 
the  amount  is  really  very  small,  and  inadequate  to  meet  the 
financial  situation,  but  the  Spanish  banks  are  quite  unused  to 
granting  credits  of  this  nature,  and  want  to  proceed  with  their 
financial  evolution  slowly.  At  the  same  time,  it  is  rather  un- 
fortunate that  Spain  has  failed  to  realise  the  enormous  sum 
she  might  have  made  and  could  still  make  by  'he  artive  use 
of  her  large  gold  holding,  which  at  present  is  being  rirrely 
hoarded,  and,  'therefore,  losing  interest.  The  lira  has  depre- 
ciated afresh,  and  is  now  quoted  at  42.80  lire  to  the  povnd, 
against  42.45  lire.  Amsterdam  has  fallen  to  the  fresh  'ow  record 
of  9.82J  fl.  to  the  pound,  but  the  Scandinavian  exchanges  have 
moved  slightly  in  our  favour,  Stockholm  being  obtainable  at 
14.05J  kr.,  and  Christiania  at  15.07J  kr. 

Silver. 
Silver  has  weakened  %d.  this  week,  but  is  now  quoted  firm 
at  49id.  Mocatta's  circuW  tells  us  that  the  market  was  quitt 
throughout  the  week,  with  little  doing,  and  only  receded  the 
minute  fraction  on  Thursday  owing  to  the  presence  of  a  larger 
supply  of  the  mertal  than^  had  beein  looked  for. 


Applications  for  the  Rs.  60,00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Rs.  2,19,55,000.  Of  these 
Rs.  59,59,000  were  allotted  in  deferred  transfers,  and  Rs. 
41,000  in  immediate  transfers.  Tenders  for  bills  and  de- 
ferred transfers  at  is.  4  29-32d.,  and  for  immediate  transfers  at 
IS  5d.,  received  aibout  27  per  cent.  Next  week  India  bills  will 
be  issued  on  Tuesday,  imstoad  of  Wednesday. 


Bank  Rate  5  per  Cent.    (Reduced  from  5^  percent,  on 
Thursday,  April  5,  1917.) 


BANK    OF    ENGLAND 

A.N  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 
Week  ending  on  Wednesday.  May  1,  1918. 


Proprletoca' CipUal 

RosI 

Publlo  DeposUs(includlng 
Bxcbequer,  Savings 
Banks,  Cominissioners 
ot  National  Debt,  and 
Dividend  Aoaounts)  .. 

Oiber  Deposits 

Seven  Day  and  otber  Bills 


Dated  May  2,  1918. 


Norfolk  House,  Friday  Evening.  Notes  issued 

Money  is  now  being  called  in  by  the  Scotch  banks  in  prepara- 
tion for  the  Scotch  mid-May  term  payments.  That  helped  to 
make  credits  in  a  manner  scarce  at  the  end  of  last  week  and 
beginning  of  this,  so  that  3  per  cent,  was  for  a  day  or  two 
the  minimum  quotation  for  call  money.  Then  the  Government 
requirements  also  influenced  rates  once  or  twice  in  the  same 
direction,  but  it  all  passed  over  without  causing  anything  more 
than  a  ripple  on  the  surface,  and  discount  rates  were  never 
altered  from  the  3i  to  3-^^  per  cent,  quoted  in  our  table. 

The  Bank  return  is  as  uninteresting  as  the  condition  of  the 
market  itself,  and  the  movements  of  credit  were  insignificant, 
the  largest  being  a  decline  of  ^^2, 502,000  in  the  other  deposits, 
and  next  to  that  came  a  shrinkage  of  ;if  1,980,000  in  other  ser.iri- 
ties,  but  the  note  circulation  has  increased  /i, 030,000,  and 
although  ;f355,ooo  of  coin  and  bullion  came  in,  the  reserve  is 
therefore  ;£675,ooo  down.  Its  proportion,  however,  thanks  to 
the  fall  in  the  liabilities,  remains  at  17J  per  cent. 

The  official  reply  to  the  complaiimt  of  holders  of  the  5  per 
cent.  War  Loan  that  they  will  he  taxed  on  last  year's  dividends 
at  63.  in  the  £  instead  of  5s.,  as  the  result  of  the  "  no  deduc- 
tion at  source"  concession,  has  not  satisfied  holders.  It  is 
true  that  as  last  year's  dividends  were  excluded  from  the  return 
for  income-tax  purposes ;  the  assessments  were  consequently  re- 
duced, and  holders  gained  in  more  ways  than  one  from 
this  arrangement,  but  the  holder  of  inscribed  stock  who  has 
converted  his  holding  into  bearer  bonds  will  have  to  ,pay  two 
years'  taxes  out  of  one  year's  interest.  But  the  real  point  is 
this,  that  holders  were  led  to  believe  when  the  concession  was 
made  that  they  would  not  have  to  pay  a  higher  rate  of  tax  as 
the  price  of  the  concession.  They  are  therefore  very  resentful 
of  this  effect  of  "no  deduction,"  especially  those  li.ible  to  the 
full  rate  of  tax,  for  they  have  derived  no  advantage  whatever 
from  the  concession,  but  actually  lose  is.  for  every  pound  of 
interest  received. 

The  British  Trade  Corporation,  in  conjunction  with  the 
London  and  Brazilian  Bank,  has  just  formed  a  compainy,  en- 
titled the  Anglo-Brazilian  Commercial  and  Agency  Company, 
with  a  capital  of  ;f25o,ooo.  Its  purpose  will  be  to  recapture 
the  import  and  exjxvrt  trade  which  the  Crermans  acquired  before 


rssuE  department 

£ 
■    79,09«.540 


Government  Debt , . 
Otber  Securities    .. 
Gold  Coin  and  BiillioD 
Silver  Bullion 


i79,092,540 


£ 
It, 015. 100 
■•.lu.goc 
60,642,540 

f79.09i,540 


BANKING   department. 


£          i  £ 

14.553,000  I  Government  Securities  ..  56,4'973J 

3,104,816     Otber  Securities    ..         ..  1028^2.454 

Notes 29,653,320 

Gold  and  Sliver  Cola  7i8,447 


34,372,863 


137.652.195 
11,079 

f189.693.953 


i 


J.  G, 


^189,693.953 
NAIRNE,  Chief  Cashier. 


BANKING     DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
Maya. 

April  24, 
igl8. 

May   1, 
1918. 

Increase. 

Decrease 

3.i",743 

47,226.402 

128,858,99? 

42,978 

45,025,328 
114,193.180 
34.675,613 

Liabilities. 
Rest 

Pub.  Deposits.. 
Oiber    do. 
7  Uay  Bills 
Assets. 
Gov.  Seourlilei. 
Otber       do. 
Total  Reterva.. 

3.064,714 

34.831,045 

140,154,188 

10,720 

56,723,832 
104,842,901 
31,046,934 

3,104,816 

34,372,872 

137,652,195 

11,079 

56,459,732 
102,862,454 
30,371.767 

£ 

40,102 

359 

Decrease. 

264,100 

1,980,447 

675,167 

2.960,175 

J 

458.182 
2,50i,9J3 

Increase. 

2,960,175 

38,849.620 

55,075.233 

197  P.c. 

5  ., 

Note  Circulation 
Coio  andBalHoD 
Pronortioo 
Bank  Rate 

48,409,505 
61,006,239 

177  P.O. 
S      .. 

£ 

49,439.220 

61 ,3 '0,987 
177  PC. 

InoreasQ 
£ 

i,029,9'5 
354.74* 

Deoteaae 

1 


May  4,  1918. 


XTbe  Jnvestore'  TReview* 


437 


LONDON 

BANKERS' 

CLEAKING. 

Date. 

Increase. 

Decrease. 

1918. 

1917. 

f 

c 

ianuary 

2,073,224,000 

1,865,125,000 

208,099,000 

— 

February 

1,605,654,000 

I. 779.524.000 

— 

173,870,000 

March 

1,784,836,000 

1,492,825,000 

292,011,000 

— 

April         3 

324,(56,000 

339,347,000 

— 

65,191,000 

,,           10 

401,307,000 

253,111,000 

148,196,000 

— 

17 

358,580,000 

396,311,000 

— 

37,731,000 

as 

361,263,000 

365,133,000 

— 

3,850,000 

May           I 

378,749,000 

364,965,000 

'3,785,000 

— 

Total 

7,288,769,000 

6.768,867,000 

662,091,000 

279,642,000 

CURRENCY   NOTES. 

Remrn  of  Currency  Notes  for  the  week  ended  May  i 

,  191S. 

Issued. 

Cancelled. 

Outstanding. 

£1  notes         

los.  notes        

Note  certificates 
Previous  total 

4,S87,594 

1,510,362 

310,000 

893.337  493 

2,697,729 

I,i3!.2i0 

10,000 

658,146,607 

171,676,658 
58,640,947 
27,740,000 

9-0,045,450 

661,987,845 

238,057,605 

Ratio  of  gold  held  against  notes,  this  week,  13.55  PC. ;  last  week,  13.74  p.c. 

PUBLIC   INCO.ME   AND    EXPENDITURE. 

(For  7  days  ended  April  27.) 


Revknue. 


Expenditure, 


I 

Customs          1,555,000 

Excise 632,000 

Estate,  &c.,  Duties  ..         ..  614,000 

Stamps 140.000 

Land  Tax  and  House  Duty  30,000 

Froperty  and  Income  Tax  1,430,000 

Excess  Profits  Tax  .,         ..  4.248.000 

Land  Values   ..        ,.        ..  20,000 

f'ost  Office 350,000 

Crown  Lands 50,000 

Sundry  Loans — 

Miscellaneous 3'".i63 

Bullion  advances  repaid    ..  70,000 

For  Treasury  Bills  forSuppIy  86,915,000 

3%  Exchequer  BoEds,  1930  — 

5%  Exchequer  Bonds,  1922..  — 

6%  Exchequer  Bonds,  1920. .  — 
Nationnl  War  Bonds         ..*22, 294,000 

War  Savings  Certificates..  3,200,000 

4%  War  Loan,  1929-1942  |  _ 
5%  War  Loan,  1929-1947  f  *  * 
Other  Debts  created  under 
War  Loan  Act,  1915,  and 

Finance  Act,  1916..         ..  15,648,208 

Telegraph  Money  Act,  1913  — 
Under  Post  Office  Rly.  Act, 

1913 — 

Under  Military  Works  Act, 

1897.1903       — 

UnHer  Public  Buildings    ..  — 

Under  Housing  Act..        ..  — 
Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds            — 

China  Indemnity      ..        ..  — 
East    Africa    Loan    repay- 
ments   — 

Suez  Canal  Drawn  Shares..  — 

Ways  and  Means  Advances  12,000,000 
decrease      in      tschequer 

balances       — 


£149.126,371 


National  Debt  Service 

Inter  St,   &c.,  on  War  Debt 

Development  &  Road  Impvt 

Payments  to  Local  Taxation 

Other  Consolidated  Fund 
Charges 

Supply  Services       . ,         .  •  55. 

Bullion  Advances     . . 

For  Advance  for  Interest 
on  Exchequer  Bonds  un- 
der Capital  Expenditure 
(Money)  Act,  1904  . . 

For  Treasury  Bills    . .       . ,   81 

Other  Debt  under  War  Loan 
Acts,  1914.-16 

For  War  Loan  and  Ex- 
chequer Bonds  under 
Section  61  of  Finance  Act, 
1916,  and  Section  54,  1917 

Under  Telegraph  (Money) 
Act,  1913 

Under  Post  Office  (Lon- 
don) Railway  Act,  1913  . . 

Under  Militarv  Works  Acts 

Under  Housing  Act,  1914.. 

Public  Buildings  Expendi- 
ture Act,  1903 

Old  Sinking  Fund,  1907-8.. 

Sinking  Fund,  1910-11 

China  Indemnity 

East  African  Loan  . . 

Cunard  Agreement  Act     . . 

Expenditure  Certificaies   ,. 

Depreciation  Fund  ..        ..    i; 

Suez  Canal  Drawn  Shares. . 

Tt'mp.     Advances     Repaid   8, 

Increase  in  Exchequer 
balances       i; 


732,680 

100,000 


580,500 
150,000 


531.000 


41,098 


106,300 


,660,022 
,GOO,000 

,224.791 


:Ci49."6.37r 


'Excluding  sales  through  banks  which  have  not  yet  been  brought  to  accoun*^ 

FEDERAL  RESERVE  BANKS  (U.S.)  {dollar  at  48.] 


Apr.  5,  1918. 

Mar.  28,  1918. 

Apr.  6,  1917. 

■Gold  coin  and  certificates 

Ooid  Settlement  Fund 

•Gold  with  foreign  agencies  . . 

£ 
96,756,000 
76,232,600 

lO.SOO.OOO 

97,989,6co 

79,913.6  JO 

10,500.000 

i 
72,494.400 
40,025,000 

Total  gold  held  by  banks 
■Gold  with  Federal  Res.  Agent 
Col  t  Redemption  Fund 

i83,4tS8,eoo 

174,615,400 

4,ft8<\8oo 

188,403,200 

170.438.400 

4,299,2^0 

112,519.400 

75,690,000 

501,000 

Total  gold  reserves    . . 
Cegal  tender  notes,  silver,  &c. 

362,784,800 
12,701,800 

363,140.800 
ir. 671. 800 

188,710,400 
3,822,000 

Total  reserves  . . 
BilU  discounted— Members' . . 
iiills  bought  in  open  market 

375,4B6,6oo 
114,775,600 
65.^00,600 

374.812,600 
116,645,600 
60,813,000 

192,532,400 
3,585,600 
16  -147.001 

Total  bills  on  hand     .. 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec. 
All  other  earning  assets 

I  to, 077, 200 

12, 08c, 600 

52,080,000 

614,40* 

177,458.600 

11,638,000 

50,515,800 

704,600 

20,132,600 
7.325,800 

14,608,400 
3,062,800 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 

244.68^,200 

1,991,400 

69,399,400 

240.317,000 
5,389,000 
67,826.000 

45,129,600 

662,400 

29,284,400 

Total  dedctns.  fm  gross  dep. 
5%Red.FundagFed.Res.bknts 
All  other  resources 

7i,3yo,8oo 
107,400 
64.800 

73,2i5.oco 
107,400 
74t.8no 

29,966,800 
80,000 
060,400 

Total  resources 

691,911,8  0 

689.196,8.0 

268,669.200 

Capital  paid  in 

Siirplus 

Government  deposits  . . 
Due  tomembrs— Res.  account 
Collection  items 
Oihtrdepsinc  For.Govt  crdts 

14,890,000 
226,800 
20,963,600 
294,658,800 
45,«27,8oo 
16,413.400 

14,844,600 
2  26,  Poo 
20,817,200 
299,880,000 
43.379.403 
i6,2Ti,8oo 

11,230.000 

9,292,300 
151,643,800 
21,087,200 

Total  gross  deposits    . . 
'F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn-nettUab. 
All  other  liab,  in  for  Gov  crdts 

377,263,600 

295,984,000 

1,572.000 

i,9~6,630 

380,288,4^0 

290,567,600 

i,595.6jo 

1,671,800 

182,023,200 

75.302,oco 
124,200 

Total  liabilities 

691.931,800 

689,19'!. 800 

26S, 669,200 

(Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Katio  of  gold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

jRatio    of    total    res.    to    nett 
deposit  and  F.R.    note  lia- 
bimies  comb  n£d 

60.0% 
60.6% 

60.3% 

62.4% 

6.-4% 

eo-1% 

60.8% 

62.7% 

74.0% 

101.3% 

8*.7% 

N£W   YORK   ASSOCIATED    BANKS   (dollar  at  4».). 


Loans       

Reserve  held  in  own  Vaults . . 
Reserve  held  in  Fed.  Res.  Bk. 
Cash  in  own  Vaults     .. 
Reserve  held  in  Other  Depos. 
Nett  Demand  Deposits 
Nett  Time  Deposits     . . 

Circulation         

Excess  Lawful  Reserve 


April  27, 1918 


April  ao,  1918  April  13, 191S  April  28, 1917 


901,584,000 


21,148,000 

746,684,000 

36,292,000 

7,212,000 

12,224.000 


£ 

898,830,000 

3,464.000 

106,090,^00 

20,848,000 

1,668,000 

753,740.000 

36,328,000 

7,214,000 

10,970,000 


Lawful  Reserve  consists  of    18%  of    the  Demand 
Time  Deposits 


872,890.000 

3,478,000 

>o5, 174,00c 

21,085,000 

1,670,000 

750,858,000 

36,422.1000 

7,180,000 

10,430,000 


735.786.000 
9o,030>,ooo 
49,786,000 

12,603,000 

743ii9o,o:)0 

40,510,000 

S,740,oco 

24,384,000 


Deposits  and  5%  of    the 


NEW  YORK  STATE  BANKS  &  TRUST  COMPANIES   (dollar  at  4s  ) 

April  20,  1918. 

April  13, 1918. 

April  6, 1918. 

April  21, 1917. 

Loans  

Specie 
Deposits 
Legal  Tenders 

£ 

153,790,000 

3,102,000 

143,824,000 

13,228,000 

151,304.000 

3,044.000 

142,370,000 

13,340.000 

t 

150,082,000 

3.014,000 

142,022,000 

13,610,000 

i 

l6*,i78,ooo 

13,848.000 

171,930,000 

2,252,000 

BANK 

OF   FRANCE   (25  franc 

B  to  the  £). 

April  25,  iqi8. 

April  18, 1918. 

£ 

April  II,  1918. 

April  26,  1917. 

£ 

£ 

£ 

Gold  In  hand 

133,670,200 

133.625,360 

135,568.080 

131,780,960 

Sliver  In  hand 

10.242,840 

10,143,040 

10,205,320 

10.263.800 

Bills  discounted 

41,751,280 

57,649,760 

63.330,640 

20,015,600 

Advances 

55,891,160 

41.079,960 

45,142,920 

46.301.440 

Note  oironlatioa 

1,055,810,040 

1,049,270,840 

1.043.471,360 

760,394,120 

Public  deposits 

2,231,560 

I .679,000 

2,287,363 

4,885,160 

Private  deposits 

132,530,120 

128,540,280 

131,878,200 

100,351,480 

Poreien  Bills.. 

342,080 

425,400 

462,000 

— 

Proportion  between  bullion  and  circulation  21.34  per  cent.,  against  21,47  per 
cent,  last  week.  Advances  to  the  State  £626,000,000,  increase  /12, 000,000.  The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium,  1^19,272,960, 
decrease  £39,520,  ind  at  the  branches  £24,616,800,  decreasp.  £52,840. 

IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  £). 


April  23,  1918.  April  15,  1918.  April  6,  1918 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances 
Note  circulation 
Deposits 


123,236,250 
73.235,150 
634,934.950 
361,900 
578,201,550 
^14^959.150 


126,409,400 
73,023,300 
698,240,700 
3'7,75<' 
585,359,900 
368,765,900 


126,375,750 
76,077.950 
710,137,950 
299,150 
595,852.300 
379.745.150 


April  23,  19:7. 

£ 
i27,4s6,6o» 
27,521,300 
424,240,500 
464.050 
407,246,650 
aoo.716.800 


Clearing  House   return    during   March    £459,815,355,   against    £420,879,905 
in  February. 

BANK    OF    SPAIN  (25  pesetas  to  the  £).     


April20,  i9i8'Apifli3,i9i8  April  6, 1918  Aprilji, 1917 


Gold        

Silver      

Foreleii  BilU    .. 
Discounts  and  Snort  Bills 
Treasury  Account,  &c. 
Notes  in  Circulation  .. 
Current   Accounts,  Deposits 
Dividends,  Interests,  &o. 
Government  Securities 


£ 

81,104,753 

28,280,814 

3,736,343 

30,230,376 

25,011,667 

116,501,009 

34,875.995 

2,109,813 

3,410,170 


80,877,818 

28,171,310 

3,644,077 

30,977.141 

24,986,708 

116,576,005 

35,234,664 

1,850,053 

3.788.563 


80,570,477 

28,127,816 

3,582.025 

31,528,746 

24,963,401 

116,024,147 

34,823,592 

2,241,986 

4  283,847 


54,995,961 

23,087,039 

3,377.759 

33,966,726 

25,346,025 

96,541,192 

30,208,659 

1,504.744 

9,596,806 


BANK 

OF    SWEDEN  (18  kroner  to  the  £) 

• 

Apr.  13, 1918. 

Apr.  6,  1918. 

Mar.  30,  1918. 

Apr.  14,  1917. 

Gold 

Balance    abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  ., 
Discounts  and  Loans 
Notes  in  Giroul?tion 
Deposits  at  notice  . . 

£ 
14.327.000 

7,538.000 

3,901,000 
15,675,000 

33,855,000 

7,168,000 

£ 

14,331.000 

7,307,000 

3,9  >4  000 
15,769,000 
34,662  000 

6,552,000 

£ 
14.337,000 

7,306,000 

3,920,000 
15,841,000 
35,037,000 

7,062,000 

£ 
10,727.000 

7,35».»o 

3,250,000 

9,160,000 

23,331,000 

7,3'5.ooo 

NETHERLANDS  BANK  (i2  Florins  to  the  £). 


Apr.27,1918. 


Gold  and  Silver 
Bills  and  Advances 
Note  circulation 
Deposits. .        .. 


£ 

61,087.000 

17.021,750 

78,244,250 

5.775.416 


Apr.  20, 1918 


£ 

61,383,665 

14,059.583 

74,847,916 

6,059,833 


Apr. 13,  1918 


£ 

6r,440,f65 
14,181.333 
74,761.000 
6,124,083 


April28,i9i7 


50,a82,oco 

16,198,082 

64,725.333 

4,957,669 


SWISS  NATIONAL  BANK  (25  francs  to  the  £). 


Gold  and  silver 

Bills 

Note  olroulatlon 
Current  and  deposit 
accounts 


April  23,  1918. 


17.276,252 

io,88g,2f,6 
26,410,880 

3,447,212 


April  15, 1918. 


£ 
17.207,788 
10,241,904 
26,619,044 

3,532,244 


April  6,  1918. 


£ 
17.t41.49> 
12,655,992 
27,349.076 

5,220,336 


April  23,  1917. 


C 

13,764,868 

7.544.280 

20,101,972 

4.861.784 


BANK  OF  NORWAY  (18  kroner  to  the  £|. 


Gold 

Balance  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
Discounts  &  Loans. 
Notes  in  Ciroulatloo 
Deposits  at  notice.. 


April  15, 1918. 


£ 
6,735,000 

3,648,000 

713,000 

18,572,000 

19.675,000 

6,736,000 


April  8,  1918. 


£ 
6,737,000 

3.429,000 

713,000 

18,614,000 

19,390,000 

6,974,000 


Mar.  30, 1918 


£ 
6,739,000 

3,340,000 

713,000 

18,473,003 

19,255.000 

6,834,000 


April  15, 1917. 


£ 

7,170,000 

4,274,000 

706,000 

11,663,000 

13.693,000 

6,321,000 


438 


^be  Jnvestots'  IReview. 


May  4,  1918. 


LONDON  COURSE  OP  EXCHANGE. 

Plaoe. 

Usance. 

April  30,  1918. 

May 

2,  1918. 

Sellers. 

Bujrers 

Sellers. 

Bayers. 

Amsterdam..    .. 

Cable  transfers 

987 

9-92 

9.80 

9.85 

Paris      

Cable  transfers 

27.14 

27.19 

27.14 

27.19 

Three  months' bills.,     ,. 

27.55 

27.60 

27.55 

27.60 

Switzerland..     .. 

Cable  transfers 

so  05 

20.15 

19.93 

20.03 

t)              .... 

Thren  months' bills..     .. 

20.40 

20.50 

S0.2l( 

20.38 

Genoa,  &c 

Cable  transfers 

42.70 

42.60 

42.90 

43.00 

Spain      

Cable  transfers 

17.05 

17.15 

17.10 

17.25 

,,        

Three  months' bills..     .. 

fisi 

^1 

28| 

6fijl 

Lisbon  and  Oporto 

Cable  transfers 

261 

29'i 

Co]  cnhagen..     .. 

Cable  transfers 

I5->3 

15.23 

15.15 

'525 

Christiania  ..     .. 

Cable  transfers 

15,03 

■5.»3 

15.09 

15.19 

Stockholm   ..     .. 

Cable  transfers 

14.00 

14.10 

I4.C5 

M>3 

After     the    holiday,   however,    the    position     improved      very 
materially.     There  was  a  much  larger  accnmnlation  of  orders 


FOREIGN    RATES    OP   EXCHANGE   ON    LONDON. 


Method  of 

Last 

This 

Quoting. 

Id 

Week. 

Week. 

Paris,  cheques 

Francs  to  £1 

25.224 

27. 15  J 

27.16 

Amsterdam,  cheques 

Florins  to  £1 

12.107 

Q-Mi 

9.82 

Italy,  sight 

Lire  to  £1  .. 

25.22J 

42-55 

42.82* 

Madrid,  sight 

Pesetas  to  f  I 

25.22J 

17.65 

17.174 

Lisbon,  sight 

Hence  to  milreis  . . 

53jd. 

29id. 

29gd. 

Switzerland,  sight   .. 
Christiania,  sieht     .. 

Francs  to  ft 

25.22J 

2007J 

19.9* 

Kroner  to f  I 

18.159 

15.10 

15-13 

Stockholm,  sight 

Kroner  to  f i 

18.159 

14.10 

14.07 
15.17: 

Copenhagen,  sieht   .. 
Petrograd,  sight 

Kroner  to  ^f  i 

18.159 

I5.24J 

Roubles  to  ^10     . . 

94.57 

noui. 

nom. 

Alexandria,  sight 

Piastres  to  jft 

97i 

97* 

97i 

Bombay,  T.T 

Sterling  to  rupee.. 

1/4 

i/jH 

I/5S 

Calcutta,  T.T 

Sterling  to  rupee.. 
Sterling  to  dollar.. 

1/4 

1/5I 

Hong  Kong,  T.T 

— 

3/18 

3/il 

Shanghai,  T.T 

Sterling  to  tael     . . 

— 

4/5i 
2/4 

4/5 

Singapore,  T.T 

Sterling  to  dollar. . 

— 

f\ 

YoVoharoa,  T.T 

Sterling  to  yen     . . 
Dollars  to  £1 

24.58d. 

2/2i 

New  York,  cable 

4.S6« 

4-761 

4'76i 

Buenos  Aires,  T.T 

Pence  to  dollar    . . 

47.58d. 

5ld 

5"J<i- 

Valparaiso,  90  days.. 

Pence  to  peso 

isHd 

i6A<5- 

Uontevideo,  T.T 

Pence  to  dollar    . . 

5ld. 

64d. 

65W 
l3A<i- 

Rio  de  Janeiro,  90  days    . . 

Pence  to  milreis  . . 

i6d. 

liSA- 

OPEN  MARKET  DISCOUNT. 


Thirty  and  sixty  day  remitted 
Tbtee  inoutbE  ,, 

Four  monibs  tt 

Sii  months  , 

Three  months  Gne  laland  bills 
Four  months 
Six  months 

BANK  AND 


DEPOSIT  KATES, 


BaoIi  of  England  tumimum  discount  rate 
,,  ,,         short  loan  catefi 

fiaukecs'  caie  on  deposits 

BMl  brokers'  deposit  rate  (oall) 

,,  7  and  14  days'  noiloe  .. 

Current  rates  for  7  day  loans 
,,  for  call  loans 


Last  week.  Tbisweek 
Percent.     Per  cent 

•-  34 

..     3i-ft 

::  n-i 
■-:  ri 

Last  week  This  week 
Per  cent.  Per  cent. 
..        5        ■•         5 


3A-I 

35-1 

4-4 


t- 


3 
3 

3 
3 

-1 

:  i^ 

-3 

•    ai-3 

The   Week's    Stock    Markets. 

With  a  holiday  in  the  middle  of  the  week  the  Stock  Exchange 
generally  prefers  to  play  "doggo."  It  will  sell  you  anything 
you  fancy  at  1-32  or  ^  over  the  real  "  touch  "  with  the  greatest 
gusto,  but  if  you  happen  to  be  on  the  other  side  the  price  flops 
4  or  i,  and  as  likely  as  not  the  jobber  will  tell  the  broker  that 
he  is  no  gentleman.  However,  on  this  occasion  the  May  Day 
recess  happened  to  coincide  with  good  news  from  the  Western 
front,  and  business  was  resumed  on  Thursday  in  an  atmosphere 
of  general  cheerfulness.  The  accumulation  of  orders  raised  the 
number  of  recorded  bargains  to  a  higher  level  than  has  been 
touched  for  quite  a  long  time,  and  for  once  in  a.  way  there  was 
nothing  really  distressing  to  disturb  the  general  equanimity. 
It  is  true  that  the  Canadian  Pacific  and  Grand  Trunk  state- 
ments showing  a  terrific  further  advance  in  working  expenses 
caused  some  anxiety  in  that  section,  but  prices  did  not  weaken  to 
any  great  extent  because  there  was  practically  no  stock  on  offer. 
Argentine  Railways  were  not  seriously  affected  by  reports  of 
fresh  labour  troubles,  as  last  week's  traffics  showed  substantial 
increases,  and  it  was  argued  that  the  position  could  not  be 
quite  so  had  as  the  cables  represented.  In  the  Foreign  market 
Spanish  soared  up  in  a  dazzling  way  on  the  exchange  position, 
but  that  is  a  terribly  unstable  basis  for  the  purchaser  to  depend 
upon,  and  actual  holders  would  possibly  be  prudent  to  take 
advantage  of  the  high  prices  now  ruling.  Japanese  stocks  have 
again  been  in  favour  owing  to  the  steady  improveiiient  in  the 
finances  of  the  country,  but  Russian  stocks  are  and  must  be  of 
more  or  less  nominal  value  until  the  outlook  is  clearer.  Rather 
more  interest  has  been  taken  in  miscell.ineous  industrials,  and 
there  has  been  a  notable  revival  in  Brewery,  Shipping,  Explo- 
sive, and  some  other  shares.  We  rather  deprecate  any  kind  of 
speculative  investment  at  present,  but  it  has  its  uses,  and  the 
established  industries  of  the  country  must  be  supported  even 
when  it  is  only  a  question  of  their  shares  changing  from  hand 
to  hand. 


With  the  "  House"  closed  on  May  i,  as  usual,  business  was 
very  much  restricted  in  the  first  two  days  of  the  week,  and 
everything  was  allowed  to  slip  into  almost  complete  stagna- 
tion. The  number  of  bargains  recorded  was  unusually  small, 
nnd  in  no  direction  was  there  any  appearance  of  enthusiasm. 


Consols 

War  Loan   34' 
44 


1929-47. . 
1919-42. 


India  3%  . 

..     3*% 

Australian  5}%,  1020-23 

Canada  4%,  1940^  . . . 

..       4%.  »920-5  ... 

Argentine  5%  1886 

BelKian3% 

Brazil,  1913 

^,  ...       5%.  I9M    

Chmese  1896  

,,       IQ12  

Egypt  Unified  4% 


Caledonian  defd. 

Gt.  Central  pta 

,,        „         dfd .- 

Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Vorks 

London  Brighton  dtfd. 
London  Chatham  ord. . . 
Canatiian  Pacihc 


Latl 
Week 


E.  Indian  Guar.  4A  %  debs. 
Grand  Trunk  ord.    

Do.  ist  pf 

Do.  3rd  pf 

Antofagasta  dfd 

B.  A.  &  Pacific  

B.  A.  Gt.  Southern 

B.  A.  Western    

Cent.  Argentine  ord 

Anglo-South  American    .. 

Hank  of  Australasia 

Bank  of  N.S.  Wales 

Barclay  &Co."  A" 

Do.       "B" 

Capital  &  Counties    

Chartered  of  I  iidia    

Hongkong  &  Shanghai    .. 

Lloyds  

Armstrong,  Whitvvorth  .. 
Birminehain   Small  Arms 

Cammell-Laird 

Cargo  Fleet 

Davis,  D.,5/   

Doruian,  Long   

Associated  Cement 

Borax  dfd 

Bovrii    

British  A mer.  Tobacco  pf. 

British  Aluminium 

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Keiiner 

Eastern  Telegraph    

ti^astmans 

Ounard 

Furness,  Withy 

P.  &0.  dfd 

Royal  Mail 


Anglo  Argentine  ist  Pf. 

Hrazil  Traction 

Darracq     

Anglo- Kgyptiao  "B"  .. 

Burmah 

Lobitos 

Mexican  Eagle  pf 

North  Caucasian 

Roumanian  Cons 

Allagar2/- 

Anglo-Dutch,  £1    

Anjilo-Java  Rub.  2/-     .... 

Anglo-M^lay  2I 

Ayer  Kuning  ^^i 

Brit.  N.  Borneo  Trust  £1 

Bukit  Cloh2/- 

Bukit  Mertajam  2/-  

Bukit  Seml>awatig  2/-  .... 

Carey  United  3^1   

Chersonese 

Chevi  t  2/-   

Dalkeith  2/- 

Grand  Central  £1 

Highlands  £1 

Java  Investmrnt  £1 

Johore  Rubber  Lands  £1. . 

Kamunin    2/- 

Kinta  Kellas2/-  

Labu  2/- 

Langen  lava  £1 

Linggi2/- 

London  Asiatic  2/- 

Malayalam  £1 

Merlimau  2/-    

Bechuanaland  Exp. 

Brakpan   

Brok-n  Hill  Prop.  (8/-)    .. 

Cam  &  Motor 

Central  Mining  (;Ci2)  .... 

Chartered     

City  Deep      

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (10/-) 

De  Beers  did.  (£2  20^.)  .. 

East  Pool  (5/-) 

East  Rand   

Guduld 

Geevor  (10/-)    

Gov,  Areas  Mod     

Gt.  Boulder  (3/-\    


ioi4 

94  jl 

100^ 

54 

62? 

994 

80 

954 

99 

624 

674 

854 

88 

75 

88 

82. 


33} 

82 

634 

5n 

8 

84 


Week 


^ 


if' 


99i 
looj 

P 

80 
934" 

67* 

S4il 
88 
76 
87X 

3' 
•4 

64 

8 

157  J 

84 


.■S" 

.10 

19 

184 

146 

'45 

4'i 

4>J 

68 

68 

68 

68 

.'9 

59 

8 

8 

'17 

117 

35* 

3-i4 

7* 

7» 

12 

>M 

254 
71? 

27 

74 

82 

82 

'5 

25 

41,6 

4I/6X 

62/6 

646 

6? 

<ifi 

26/ 

26/ 

10/9 

1 0/0 

36/ 

35/6 

3ft 

4 

36/ 

37/ 

2r/ 

21/ 

17/ 

■7/ 

y; 

30/9 

30/ 

30  6 

m 

m 

34 

n 

"i4 

'54 

9/ 

9/ 

Last 
Week 


^.S.W.5%.  i9S'-3   

.,      3,»%'S>»o-a 

„     !i%Debs 

New  Zealand  4%,  1939  .. 
Queensland  4^%,  1920-5. 
S.  Australian  jjSX  1922-7. 
Union   of   S.  Africa  4)% 

i9'o-5     

Victoria  4}%,  1920-5 

Westn.  Au9.  4%    

French  War  Loan,  5%  ., 
Japan  4j%  (isi),  1905   ... 

5%. '907 

Mexican  5%,  1999 

Kussia4  % 

..,      4j%  1909 

.,      5%.  >90fi 

London  and  N.-W.  ... 
London  and  b.-W.  dfd.  . 

Metropolitan  

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth. -Eastern  

Stb.-Eastern  dfd 


Chesapeake. 

Erie 

Soathem  ... 


Leopoldina 

Mexican   ord 

San   Paulo  ( Brazilian) . . . . 
United  of  Havana 


Week 


London  &  Brazilian 

London  City  &  Midland. 
London  County  &  VVestt. . 
London  |oint  Stock... 
Nat.Prov.(£ioipd)  ... 

I>o.  (£>2pd) 

Standard  of  S. A 

Union  Discount 


4X 
62  6x 
32SJX 

120    j 

s! 

30/6X 
34/ 

>i 

H 
7/6 

3/ 
30/6 

6/44 
3/9 
44/6 
16/9 

4/7 

4/3 
3/14 

39/6 

3/l« 

5/3X 

2/7J 

=5/9 

57.6 

25/3 

3<'/9 

3/II 

3/9 

8/6 

40/ 

25'44 

8/9 

36/3 

5/« 

66/ 
11/ 

m 

% 
'ill 


27/3» 


Si/ox 
32941' 
120 

2} 

4^4 

32/6X 
35/ 

% 

3V> 

7/6 

3/ 

30/ 

61! 
l3/'o4 
44  6 
:6'9 
4/7 
4/44 
3/24 
39i6 
3/'4 
5/6x 

2/7l 
2f>f 
576 
24/9 
30/7} 
3/104 

3/9 
8/6 
40/ 
25/3 

8/9 
37/ 

5/2 

7/ 


Kynochs  

Mond  Nickel  ord 

Nobel,  )Ci    

South  Durham  Steel  .... 

Thornycroft    

Vickers 

Forestal  Land 

Hudson's  Bay    

Imperial  Tobacco  '  C  pf . 

L.ever  liros.  *'  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

Hears,  A.  &F 

Underground  Inc.  Bds. .. 


Coats 

Courtaulds 

English  Sewing  Cotton  . 
'ine  Cotton  Spinners  . . . 
Harrovls  Stores 


Demais  Bros  .'. 

National  Steam  Car.. 

Rolls-Royce — 

Shell 

Spies  (10/.) 

Trinidad  Leaseholds 

Ural  Ca<^piaa 

Venezuelan 


jPerak  2/-   

[Port  Dickson  2/-   

!Knb.  Estates  Krian  2/-. 

jKubber  Trust  £t 

jSampang  (Java)  2/-... 

jSeaport  £1 

JSengat  2/- 

Seremban  £i 

Sialang  £1    

Singapore  Para  2/-    ... 
Singapote  United  2/-    . 


Pataling2/- 

Straits  Bertam  2/- . 
Sumatra  Para  2/-. .. 
Sungei  Bahru  £1  . 

Taiping  2/-  

Tandjoiig  £1 
andjong  Ma 
Tebrau  £1 


Tandjong  Malim  £1, 


Telogoredjo  £1 

Tempeh  2/- 

United  Serdang  2/-  .. 

ValdOr  2I- 

Vallauibrosa  2/- 

Kyshtim    

Mashonaland  Agency 
Meyer  &  Charlton    .. 

Modder  "B" 

Do.    Deep 

M^-9ore 

Nigerian  Tin 

Pahang  (3/-) 

Rand  Mines  (}/-)   .... 

Renong 

Rio  Tinto(^5)  

Russo-Asi  .ttc 

South  Crcfty(5;-).... 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep  


y/ 
984 
lOlA 
84I 
9>4 
99 


534 

92J 

79 

77 

93 

86 

334 

424 

874 


14 
55 


58 
18 
224 


36i 
16 
182 
72 

25 
78 

'4j 

2bl 
25 
=94 
IIX 

>o4 

fl 

3i 
7'l 

42/6X 
40/ 

43/6 
476 
7h 
336 
20/6 

^1. 
16/X 
li 
74J 

'I 
7* 

52/ 

34/ 

'i 
35/6 

•7/3 

>i 

5i 
5/6 

34/ 

7t 

4/ 
3/5 
27/3 
»/54 
25/9 

3/ 

36/9 
65/ 

4/, 
3/04 

39/9 
6/iJ 
7/>c4 
36/ 

4/ 
8V/6 
30/5 
65/ 
41/ 

2/44 
10/ 

3/7J 
19  6 

i 

6/3 

2^ 
12/6 


S.4I 
3i 

\t 

its 


to  be  dealt  with  on  Thursday  than  h.is  been  experienced  for  some 
time  past,  and  the  feeling  was  correspondingly  cheerful.  This, 
no  doubt  was  mainly  due  to  the  defeat  of  the  German  offensive. 


May  4,  1918. 


^be  investors'  IReview^ 


439 


on  the  Western  front,  and  the  belief  that  every  day's  delay  is 
in  favour  of  the  Allies.  Consols  gained  a  very  substantial 
fraction,  and  War  Bonds,  after  giving  way  to  some  extent, 
mere  than  recovered  the  lost  ground.  Colonial  issues  also  were 
firm,  without  prices  moving  to  any  noticeable  extent,  and  with 
so  many  competitive  securities  it  is  gratifying  to  find  that  they 
hold  up  as  well  as  they  do.  In  the  Foreign  market,  Japanese 
towards  the  end  of  the  week  made  a  notable  spurt,  which 
carried  the  stocks  up  another  point  or  two,  and  Spanish  also 
were  particularly  prominent  with  a  jump  of  3  points.  I  ortu- 
guese,  Greek,  Brazilian,  and  Chinese  also  gained  substantially, 
but  Guatemalas  fell  a  point,  and  Mexican  Fives,  on  very  srrall 
transactions,  receded  3^.  Russians  naturally  gave  nay  on  any 
offer  of  stock,  but  Cuban  Ports  advanced  on  the  settlement 
which  has  been  already  announced. 

Home  Railways  generally  have  maintained  a  firm  appear- 
ance, but  except  for  an  advance  of  J  in  Brighton  deferred,  the 
changes  have  been  comparatively  insignificant,  and  although 
the  tone  has  been  good,  the  amount  of  business  transacted  has 
been  almost  negligible.  Americans  have  been  firm,  but  the 
only  change  noticeable  is  an  advance  of  one  point  in  Interiia- 
tional  Mercantile  Marine.  Canadian  Pacifies  have  just  main 
tained  their  ground,  and  Grand  Trunks,  after  showing  some 
strength,  fell  back  below  the  opening  level.  Argentines  were 
weak  at  first  on  further  labour  troubles,  but  on  the  receipt  of 
good  traffics  they  hardened  up  again.  Antofagastas  at  one 
time  were  conspicuously  strong,  but  they  finished  without  much 
improvement. 

Hank  shares  have  received  more  support  than  for  some  time 
past,  and  where  changes  have  occurred  they  have  been  almost 
invariably  in  favour  of  holders.  Capital  and  Counties  gained 
as  much  as  a  point,  and  National  of  South  Africa  also  im- 
proved, but  the  amount  of  business  has  been  comparatively 
trifling.  Brewery  shares  have  shown  a  very  much  firmer  tone, 
in  spite  of  the  Budget  regulations.  It  begins  to  look  as  though 
the  more  the  industry  is  controlled,  the  more  profit  is  expected 
.to  accrue  to  the  big  houses;  at  any  rate.  City  of  London  shares 
have  advanced  nearly  ro  points,  Guinness's  are  up  8,  Allsopps 
have  gained  anything  from  4  to  6,  and  Watney,  Combes  2^, 
while  Meux,  in  spite  of  the  excellent  reorganisation  scheme, 
have  not  yet  advanced  more  than  a  couple  of  points.  Iron  and 
Steel  shares  have  been  good,  and  National  Explosives,  Nobles, 
and  a  few  others  in  this  group  have  gained  materially  on  the 
expectation  of  an  early  realisation  of  the  amalgamation 
rumours.  Birmingham  Small  Arms  also  advanced  on  the 
bonus  distributions,  but  Swan,  Hunters  were  weak.  Egyptian 
securities  have  been  dull,  and  Land  shares  have  not  attracted 
much  attention,  but  Hudson's  Bays,  after  a  weak  opening, 
gained  a  substantial  fraction.  Nitrates  were  weak  where  they 
moved  at  all,  and  Fortunas  and  Rosarios  sagged  rather  severely 
in  spite  of  the  fact  that  the  prospects  of  the  industry  generally 
are  extremely  favourable.  Shipping  shares  have  shown  con- 
siderable strength  under  the  lead  of  Cunards,  while  Court 
Line,  Indo-China,  and  P.  and  O.  deferred  have  improved  con- 
siderably. Among  miscellaneous  industrials.  Coats,  Courtaulds, 
English  Sewing  Cotton,  Cements,  National  Steam  Car,  and 
Nitrogen  Products  have  all  improved,  but  Brazilian  Tractions, 
Van  den  Bergs,  Price's  Candles,  and  a  good  many  others  were 
rather  inclined  to  ease  oS. 

Oil  shares  generally  have  shown  much  greater  strength  than 
might  have  been  expected  in  the  circumstances,  and  especially 
with  regard  to  the  restrictio;i  of  shipping  facilities.  Of  course, 
the  Eagle  Transport  report  was  regarded  favourably,  and 
Mexican  Eagles,  "  Shells,"  Burmahs,  Anglo-Egyptians,  and 
Trinidad  Leaseholds  all  improved.  A  few  of  the  minor  shares 
gave  way  a  trifle,  but  on  the  whole  the  tone  of  the  market  has 
been  very  satisfactory.  Rubber  shares  have  continued  to  re- 
ceive a  fairish  amount  of  support,  in  spite  of  the  restriction 
of  output  and  the  con.sequent  inevitable  increase  in  cost  of 
production,  but  as  the  amount  of  stock  available  is  generally 
less  than  the  demand  on  the  part  of  investors,  nothing  appears 
to  stop  the  upward  tendency. 

LONDON    PRODUCE   MARKETS, 

There  was  no  new  feature  to  record  in  most  markets,  a  generally 
quiet  tone  being  apparent,  and,  in  some  instances,  quotations  in  a 
great  measure  were  quite  nominal. 

Sugar. — No  alteration  was  made  in  previous  prices. 

Coffee.— The  market  remained  in  a  very  slow  cnndiiion,  and 
actual  transactions  were  on  a  retail  scale,  while  prices  were  barely 
maintained.  Chiefly  Brazilian  descriptions  were  on  offer,  only  a 
few  lots  of  mild  liquoring  parcels  being  available  at  the  moment. 
Quite  a  nominal  market  resulted  respectii  g  the  position  for  future 
delivery. 

Cocoa.— Market  steady,  and  there  was  a  sustained  inquiry 
during  the  week  at  graded  prices. 

Rice  in  steady  request,  also  beans  and  peas. 

Spice. — Pepper  steady  for  black,  while  white  descriptions  ruled 
firmer.  Fair  black  Singapore,  spot,  sold,  is,  4d.  ;  Tellicherry, 
IS.  4Jd. ;  white  Singapore,  2S.  2Jd.;  Muntok,  2S.  2|d.  Cloves 
quiet.  Fair  Zanzibar,  spot,  sold,  2S.  5d.  At  public  sale.  West 
India  mace  and  nutmegs  realised  firm  rates. 

Shellac. — Small  spot  sales  resulted  on  the  basis  of  350s.  for 
fair  second  orange. 

Rubber  rather  irregular,  with  mrderate  dealings.  Tenders  for 
May  helped  to  keep  the  market  in  a  quiet  state.  Plantation  spot 
crepe,  sold,  2s.  4jd  to  2s.  4d.  and  2S.  4}d.  ;  June,  2S.  4jd.  to 
2s.  4jd.  ;  July-December,  2s.  6d.  to  2S.  6|d.  and  2s.  6d.  Standard 
ribbed  smoked  sheet,  spot,  sold,  2S.  3jd.  to  2S.  3^d. ;  fine  hard 
Para,  spot,  sold  3s.  ijd. 


Corn  (Mark  Lane),  —  Though  comparatively  subdued,  the 
market  presented  a  distinctly  steady  tone  all  round  since  last  week, 
price  changes  being  unimportant.  Wheat — Native  grain  remains 
at  76s.  gd.  per  qr.,  504  lbs.  Imported — No.  1  and  2  Manitoba 
changed  hands  at  82Ss  3d.  and  80s.  gd.  respectively.  Hard 
winters,  No.  2,  quoted  at  803.  gd. ;  Australian,  84s  3d.  Flour — 
Canadian  export  patents,  51s.  3d.  to  51s.  gd.,  according  to  quality. 
English,  44s.  3d.  per  sack,  ex  mill.  Barley — English  milling 
nominal,  at  62s.  gd.  to  63s.  gd.  Maize — Mixed  American,  79s.  gd. 
ex  ship,  and  8is.  3d.  landed.  Oats — American  white  clipped. 
No.  2,  was  closed  at  6is.  6d.     English,  quoted  at  47s.  3d. 

Cotton  (from  our  Manchester  correspondent). — The  market 
during  the  past  week  has  not  been  at  all  active,  but  in  some 
quarters  a  few  more  sales  have  been  arranged.  Wide  fluctua' 
tions  have  again  occurred  in  raw  cotton  rates,  and  there  is 
still  a  good  deal  of  nervousness  as  to  the  future  course  of 
events.     A    stronger    feeling    has   prevailed    in    the    New   York 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 
WEEK   ENDING    MAY  3.  1918 


Last 
Week. 


Tnis 
WeeV. 


«u<ar— per  cwt., 
duty  25  8,  98  % 
polarisation 

Tate's  Cubes 

Crushed 

Granulated  ..     .. 

Lyle's  granulated 

Foreign  granu- 
lated, first  niark^ 
f.o.b.,  spot 

GermaiiCubef.o.b 

French  Cube 

promp' 

-rystalllsed,  Wesi 
India 

Beet,  88%  l.o.b 

lea— per  lb.,dut) 

I/-  lb. 
Indian  Pekoe 
Btoken  ,, 
Orange  ,, 
Broken  ,, 
Pekoe  S^uobon^ 
CeyloD  Pekoe  ., 
Broken  ,, 
Orange  ,, 
Broken  ,, 
Pekoe  Souobong 

CoGoa  —  per  owl 

duly  6d.  per  lb 
Trinidad — per  ow 
Grenada  ..  ., 
West  Africa..  . 
Ceylon  Plantatloi 
Guayaquil  ..  . 
uotTee — per    cwi 

duty  42/- per  cwi 
l^ast  India    ..     . 

Jamaica 

Costa  Rica   ..     . 
ProTlalona— 

Butter,  per  cwt. 
4i!a'ralian  finest 
Argentine     . .     . . 
ttiau  Creameries 
Dutch  dit.o  . .     . 
Russian  finest     .. 
Paris  basbeis 
Udutsh  Quest 
Brittany     rolls  — 

doz.  lb 


£    s.  d. 


Last 
Week. 


3  4 
3  4 
2  17 
2   17 


nom. 
nom. 


2  17 
nom. 


I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

1  4 

I  4 

I  4 

s.  d.  ^   d. 

86  0  90  o 
80  o  85  0 
60  o  65  0 
7-  0100  0 
up  to  90  o 


I  too  133  D 

77  ■>  "50  : 
100  Ij7  o 


Bacon — per  cwt. 

Ittsh      

Continental..  . 
Canadian  .,  . 
American  ..  . 
flaniB — per  cwt. 

Irish      

Canadian  . .  . 
American     ,.    . 

Oheeae — per  cwt. 

Dutch 

Can.idlan     .. 
English  Cheddar 
Wilts  loaf     ..     . 
New  Zealand 

Rice— per  cwt. 

Japan     

Rangoon  2  stars  . . 

B^ga — per  120. 

English 

Irish      

D<tnish 


252/ 
252/ 

nom. 

nom. 

noai. 

nom. 

nam. 

nom. 


Spelter— 

G.O.B.  as  to  posi- 
tion      


Flour- per  sack. 

Country  Straight 

Runs  ex  Mill ., 


188/ 
172/ 

171/-177 
i7i/-tbo/ 

nom. 

125/-163; 

129/6-160/- 

nom. 
I26/-I68/ 
nom. 


41    3 
36    3 


33  0-34  o 
32  6-3J  o 
,4  0-36  o 


£54  ;C50 
44/3 


£    s.    d 


3    4  9 

3     4  9 

2   .7  g 

2  17  9 


nom. 
nom. 


2  17    9 
nom. 

.d.  s.  d 

I  4 

I  4 

'  4 

I  4 

1  4 

•  4 

I  4 

I  4 

J  4 

<  4 

s   d.  s.  d. 

86  o  90  0 
80  o  85  0 
60  o  65  o 

78  O    00  t 

up  to  90  o 


iio-o  133-0 
77-0  150-Q 
iio-o  137-0 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


188/ 

172/ 
17  ./-172/ 
I'/Oj-iHoJ 

nom. 
162/- 165/ 
125/-165/ 

nom. 
nom. 
1 26/- 168/ 
noin. 
nom. 


Wool— per  lb 
Australian 
Scoured  Merino 
Scoured  Cr'ssbr'd 
Greasy  Merino 
Greasy  Crossbred 
Ne  w  Zea  I  an  i^ 
(scoured)  Merino 
Greasy  Crossbred 
Cape  snow  white 

Indlarubberp.  Ill 

Plantation,      Spot 
Crepe  . .    . . 


Goal — per  ton 
Durham,  best     . 
Seconds        .. 
East  Hartlepool. 
Seconds 
Steams,  best 
Seconds       ..    . 

Lead — per  ton. 
English  Pig.. 
Foreign  solt,  net 

Quicksilver— prr 

bottle  tirsthand 


Tin— per  ton 
English  Ingots     ., 

Do.  bats  ..I 
Standard  cash  .. 
Pin  Plates, per  box 
Copper — per  tun. 
English,     Tough, 

per  ton  ..  .. 
tiest  Selected    .. 

Sheets 

Standard      ..     .. 


41    3 
26    3 


34  0  35  0 
31  6-33  o 
34  o  36  o 


£54  £50 
44/3 


Jute— per  ton 
Native   firsts    (or 
shipment 

Oils— 

Linseed,  per  ton. . 
Rape,  crude  .... 
uoit'ii  Secu.cruii, 
Petroleum  Oil.pei 

8  lbs. 
Water  White  .. 
Oil  Seeds, Llnsee-' 
Calcutta — pet  ton 
Spot 
Rape     


Iron — per  ton 
Cleveland  Cash  . . 

Tobacoo  —  duty, 

uiinianufacturei: 

8/2  per  lb. 
Maryland  St  Ohio. 

per  lb.  bend    . . 
Viiginialeat. 
Kentucky  leaf    .. 

Latakia 

Uavaua 

vlanila 

Cigars,  duty   lo/f' 

per  lb. 

Timber— Wood. 
Pitch  Pine    ..     .. 
dian  i  ujk 

Torpen  tine- 
American  Spot  . . 

Copra- per  ton 
Malabar        . .     . . 

Cey  on 

"^.M.S.  Singapore 
'.M.    Straits      ..I 


£    s.  d 

nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom 


nom. 
nom. 
nom. 
nom. 

32  6 

29  6 

£    s.  d. 
nom. 

£294-£j8J 


"356-f3';8 

.357-f359 

£350 


nom. 
fii9-£i23 

£<49 
£iio-noi 


£58 
£66 
£60 

1/74 
I/8J 


29  15 
£29-io£3c 


nom. 
08-2 
o  7  -o  11 
20-5 
16-66 

nom. 

2/  upds. 


This 
Week. 


00/ —  400 
j8o/ —  700 

124/ 


46  0 
46  o 
45  lo 
45  'O 


nom. 
nam. 
nom. 

nom. 

nom 
nom. 
nom. 


nomi 

no.-n. 

nom. 

nom 
32    6 
29    6 

i     s    d. 
nom. 

£J9J-£>8i 


£368£370. 

£369-£37i 

£360 


nom. 

£il9-£i23. 

£i4«> 

£110-1  loi 


£58 
r66 
£60 

i/ioi 

I/Il* 


29  15    o 
£29-io£30. 


nom. 
o  8 — 2    I 

0  7—0  II 
2  0—5    o 

1  6-6    6 
nom. 

2/  upds. 


300;— 400/ 
38J/— 700* 


46    o  o 

46    u  o 

45  to  o 

45  lo  o 


market  during  the  last  couple  of  days,  and  it  is  believed  that 
the  downward  movement  in  valiies  has  now  been  checked. 
Some  advices  relating  to  the  American  crop  have  not  been 
quite  so  satisfactory.  Further  regulations  have  been  issued  by 
the  Board  of  Trade  for  the  purpose  of  controlling  to  a  greater 
extent  the  buying  and  selling  of  raw  cotton  in  Liverpool,  and 
all  transactions  have  to  be  reported  to  the  secretary  of  the 
association  each  day.  The  inquiry  in  piece  goods  for  India 
has  rather  tended  to  broaden,  and  there  has  been  an  increased 
turnover  in  light  fabrics,  such   as  mull  dhooties  and  jaconets 


440 


XTbe  Jnvestors'  IReview. 


Mav  4,   1918. 


and  certain  producers  are  now  in  a  stronger  position.  Inquiry 
is  now  being  met  with  in  grey  shirtings  for  Uorabay  and 
Madras,  but  improved  bids  will  have  to  be  received  before  pro- 
gress can  be  made.  No  particular  activity  has  been  reported 
for  the  minor  outlets  East  and  West,  and  trade  for  China  re- 
mains at  a  low  ebb.  The  Government  has  again  been  in  the 
miiiket  in  heavy  materials  of  various  kinds,  such  as  ducks  and 
jeans.  It  has  been  difficult  to  arrange  transactions  in  aero- 
plane  cloths  owing  to  the  scarcity  of  the  necessary  yarns  for 
such  fabrics.  American  spinners  remain  in  a  very  strong 
position,  and  for  anything  wanted  full  rates  have  had  to  be 
paid.  A  large  demand  has  been  met  with  in  coarse  counts. 
Only  a  sorting-up  business  has  been  experienced  in  shipping 
yarns.  Prices  in  I'^gyptian  numbers  have  tended  to  go  again.st 
buyers,  and  the  undercurrent  of  demand  remains  encouraging. 


By-the-Way  War  Notes. 

"  I  have  never  believed  that  the  war  would  be  a  short  war,  or 
that  in  some  mysterious  way,  by  negotiation  or  compromise,  we 
could  free  Europe  from  a  malignant  military  autocracy,  which 
is  endeavouring  to  trample  it  into  submission  and  moral 
death."  Thus  speaks  the  Prime  Minister  in  a  preface  to  a 
volume  of  his  war  speeches  published  under  the  title  of  "  The 
Great  Crusade,"  and  compiled  by  his  secretary,  Miss  F.  L. 
Stephenson.  The  words  express  true  democratic  sentiment 
about  this  war,  and  should  help  to  explain  to  the  holders  of 
all  political  creeds  why  it  is  that,  holding  this  faith,  Mr.  Lloyd 
George,  in  spite  of  his  failings  and  lamentable  mistakes,  his 
many  shortcomings,  retains  his  hold  over  the  masses.  They 
believe  that  he  is  standing  up,  just  as  M.  'Clemenceau  is  in 
France,  on  the  side  of  the  people,  as  no  other  politician  here 
has  done,  and  underlying  that  belief  is  a  consciousness  that 
we  also  are  being  delivered  by  the  fight  from  a  tyranny  similar 
to  that  of  the  Prussian  military  organisation,  and  that  the  war 
cannot  end  to  the  profit  of  the  humble  multitudes  until  our  de- 
liverance is  also  made  sure. 

At  the  end  of  last  week  the  enemy  was  stimulated  by  success 
in  storming  Mont  Kemmel  to  make  one  more  formidable  attempt 
to  drive  us  out  of  "the  Ypres  salient,"' and  turn  our  positions 
on  the  other  hills  west  of  Mont  Kemmel,  so  as  to  split  asunder 
our  armies,  open  the  way  to  the  coast,  and  confine,  perhaps,  a 
crippling  portion  of  our  troops  to  a  mere  gushet  of  land  in 
the  south-west  corner  of  Belgium.  People  went  about  with 
long  faces  as  they  read  of  the  tremendous  concentration  of  gun 
fire  upon  the  French  position  and  ours  from  Meteren  to 
2illebeeke  and  beyond.  From  the  nortK  and  the  south  the  enemy 
was  pressing  down  upon  us,  endeavouring  to  enclose  us  within 
the  pincers  of  his  picked  fighting  divisions.  For  two  da3's 
the  battle  went  on,  growing  in,  the  intensity  and  fury  of  the 
attack  and  in  the  sublime  devotion  and  self-immolation  of 
the  defence.  It  ended  in  a  crushing  German  defeat,  further 
heaps  of  dead,  multitudes  of  wounded,  and  in  something  like 
a  dozen  broken  and  exhausted  divisions  fiung  back  upon  their 
base.  Since  that  struggle  finished  there  has  been  no  Flanders 
fighting  on  a  great  scale  up  to  the  time  of  this  writing.  Is  the 
war  nearing  an  end,  then?  We  by  no  means  yet  think  so, 
because  the  German  people,  deluded  as  they  are,  besotted  with 
the  lust  of  conquest  as  many  of  them  continue  to  be,  have  not 
yet  reached  the  temper  which  would  dispose  them  to  accept  the 
peace  of  the  Allies.  Above  all,  the  arrogant  spirit  of  the  domi- 
neering Junker  is  more  filled  after  each  defeat  with  rage  and 
spite  and  eager  lust  for  revenge  than  with  the  meekness  of  the 
beaten. 

But  is  not  all  this  according  to  what  we  should  judge  the 
-destiny  overruling  this  terrific  upheaval  of  savagery  to  be? 
It  is  better  for  us,  hard  and  sorrow-laden  though  it  be  to  say 
it,  that  the  war  should  go  on  for  a  year  yet  than  that  any  hint 
of  peace  negotiations  should  be  heard  now.  And  it  must 
and  will  go  on  until  the  enemy  is  reduced  to  a  condition  of 
impotence  without  parallel  in  history.  It  must  do  that  if  the 
victory  of  the  people  everywhere  is  to  be  complete.  Some 
amateur  critics  talk  of  the  Germans  falling  back  upon  the  war 
of  fixed  positions  in  trenches,  which  was  such  a  help  to  us  in 
giving  us  time,  now  that  they  have  been  thrashed  on  the  north 
as  they  were  on  the  south  towards  the  end  of  March,  ^ut  they 
cannot  do  that.  No  knowledge  of  strategy  is  required  to  under- 
stand why  they  cannot.  The  stationary  war  of  regular  siege 
is  at  an  end  because  the  three  years  it  lasted  made  the 
Hohenzollem  Empire  bankrupt   in  means  and   empty  of  stocks 


aUVERNEMENT     IMPERIAL    DU     JAPON 

EMPRUNT  4  PER  CENT.  DE  1910  DE 
FRANCS  450,000,000. 

NOTICE  IS  HEREBY  GIVEN  that  the  COUPONS  of 
the  above  Loan,  due  15th  May,  1918,  will  be  PAID  on  and 
after  that  date  (Saturdays  excepted),  between  the  hours  of 
11  and  3,  at  the  Yokohama  Specie  Bank,  Limited,  where  lists 
-maybe  obtained. 

Coupons,  which  must  be  left  three  clear  days  for  examination 
prior  to  their  payment,  will  be  paid  at  the  rate  of  exchange  on 
Paris  ruling  at  the  time  of  their  presentation. 

The  Yokohama  Specie  Bank,  Ltd., 

K.    TATSUMI.    Manager. 
7,  Bishopsgate,  London,  E.C   2. 
30th  April,    1918. 


of  all  kinds,  especially  stocks  of  food.  Hunger  will  now  compel 
the  X'russian  leaders  to  continue  the  war  in  the  open,  as  it  is 
called,  and  to  throw  masses  of  their  deluded  countrymen 
against  our  guns,  because  to  burrow  again  would  be  certain 
destruction.  Therefore,  beaten  at  one  point,  the  German  re- 
serves will  be  mustered  at  another,  and  once  again  sent  forward 
to  the  slaughter.  This  is  as  it  should  be,  this  is  what  the 
Allies  want  the  Germans  to  do,  because  the  longer  the  war 
is  continued,  the  more  convinced  are  the  leaders  of  the  free 
democracies  that  only  by  the  destruction  of,  not  merely  the 
Prussian  Junker  and  his  tyrant  military  outcrop,  but  of  masses 
of  the  German  people,  can  the  foundation  be  laid  broad  and 
solid  of  a  peace  that  will  endure,  not  for  30  years,  like  the 
peace  of  1815,  nor  for  300,  but  until  the  time  when  men  shall 
"  brithers  be  the  war'le  o'er." 

The  future  of  mankind  is,  therefore,  being  decided  on  the 
French  and  Belgian  war  front  this  summer.  When  the 
Hohenzollem  dominion  is  finally  .shattered  upon  that  front,  it 
will  collapse  everywhere  else.  Because  this  is  so,  we  need  not 
alarm  ourselves  too  much  about  German  progress  in  Russia, 
about  the  Turk  "and  his  reoccupation  of  Armenia  and  Caucasia, 
nor  even  about  the  intrigues  and  pilferings  in  Siberia,  although 
there  is  at  the' same  time  no  reason  why  we  should  not  interfere 
to  stop  them,  with  Japan's  help.  These  thieves'  progresses, 
however,  and  the  efforts  being  made  by  German  bagmen,  politi- 
cal and  commercial,  to  secure  all  manner  of  privileges  and 
advantages  for  German  products,  all  manner  of  monopolies  for  the 
natural  resources  of  the  territories  overrun,  only  serve  to  accen- 
tuate the  distrust  of  all  German  promises,  and  to  unite  the 
victimised  peoples  in  a  common  resolve  to  have  nothing  to 
do  after  the  war  with  a  race  that  has  been  reduced  to  such  a 
degraded  moral  level  by  the  skilfully  organised  Prussian  educa- 
tion as  to  have  no  capacity  left  for  thought  for  the  good  of  his 
neighbour,  but  only  a  lust  of  self-aggrandisement  always  and  in 
all  things. 

Contrast  the  German  progress  in  Russia  with  our  advance 
in  Mesopotamia.  A  most  fascinating  account  was  given  in 
Wednesday's  papers  by  Mr.  Edmund  Candler,  British  Press 
representative  with  the  Expeditionary  Force,  of  the  revival  of 
life  in  the  Euphrates  Valley  behind  our  lines.  If  we  had 
space  we  should  print  it  all,  becJiuse,  as  an  old  sheikh  is 
reported  to  have  said,  "  no  other  Government  but  the  British 
would  take  the  trouble  to  bother  about  our  water  when  they 
were  fighting."  We  have  "  bothered,"  and  to  such  purpose  that 
many  water  channels  have  already  been  cleared  out — nearly 
100  canals  on  the  Hilleh  branches  which  had  fallen  into  disuse 
among  others — by  means  of  which  300,000  acres  have  been 
brought  under  cultivation,  giving  a  promise  of  "the  greatest 
harvest  in  the  memory  of  man,  possibly  the  greatest  since  the 
days  of  Nebuchadnezzar."  So  much  grain  is  expected  to  be 
produced  in  the  reclaimed  portion  of  the  Euphrates  Valley  that 
sensible  amounts  of  our  tonnage  will  be  released  from  the 
necessity  of  conveying  corn  to  our  troops,  and  this  is  but  the 
beginning.  The  Arabs  are  settling  down  and  "  paying  their 
taxes  without  the  slightest  difficulty,"  happy  in  the  prospect 
of  a  return  to  a  settled  life.  The  Arabs  are  not  naturally 
nomads,  as  vre  .so  usually  imiagine.  They  love  a  settled, 
ordered  life  as  much  as  we  do,  and  will  return  to  that  life 
when  delivered  from  the  rapacity  of  the  Turk. 

And  look  at  the  changes  taking  place  within  the  ruined 
empires  of  the  Habsburg  and  Hohenzollem  autocracies  them- 
selves. Space  did  not  permit  us  to  draw  attention  at  the  time 
to  the  remarkable  congress  of  oppressed  races  within  the  Austro- 
Hungarian  dominions  held  lately  in- Rome.  It  was  one  of  the 
most  significant  assemblages  that  has  been  gathered  together 
in  the  history  of  modern  Europe.  Harried  and  starved  Croats, 
Bohemians,  Jugo-Slavs  all,  and  Serbians  and  Poles,  all  met  and 
exchanged  views  with  Italian  statesmen,  proclaimed  their 
national  ambitions,  and  reached  an  agreement  with  Italy. 
Italy  has  shown  the  magnanimity  we  always  expected  of  her 
in  di.sclaiming  any  intention  to  step  into  the  shoes  of  the 
Habsburg  as  tyrant  over  the  scattered  settlements  of  a  Slav 
race  along  the  eastern  shore  of  the  Adriatic  to  be  liberated  by 
our  victory.  Italy  will  become  the  senior  partner  in  a  con- 
federation of  the  free  so  far  as  the  Illyrian  part  of  Rome's 
ancient  dominion  is  concerned.  And  the  assurance  that  they 
will  be  liberated  and  not  re-enslaved  has  already  given  some 
of  these  suppressed  nationalities  the  courage  to  begin  to  shake 
off  the  Austrian  oppression.  It  is  not  much  thev  have  done, 
but  yet  a  significant  symptom  when  we  find  Czechs  on  the 
Austrian  front  who  have  been  fighting  in  the  Austrian  armies 
getting  into  communication  with  their  fellow-Czechs,  volunteers 
in  the  Italian  army,  and  arranging  to  desert.  And  Czech  bat- 
talions have  already  joined  the  Italian  armies  on  the  front. 

And  are  we  sure  that  nothing  similar  is  happening  elsewhere, 
even  on  our  Western  front?  Have  there  not  been  whispers  of 
important  desertions  of  Alsatians  from  the  German  side  to  the 
French,  and  is  it  improbable  that  the  disintegration  of  the 
enemy's  hosts  must  soon  proceed  much  further  ?  Will  the 
Bavarian,  ruthless  plunderer  and  assassin  as  he  has  too  often 
proved  to  be  during  the  struggle,  consent  always  to  sacrifice 
himself  for  the  Prussia  of  the  Hohenzollem  a.s  he  has  teen 
made  to  do  throughout,  as  some  of  his  battalions  did  in  the 
latest  battle  around  Ypres?  Will  the  Austrians  and  Hungarians 
continue  to  hold  together  even  in  the  loose  way  they  hitherto 
have  done?  They  are  wrangling  incieasinglv  over  the  food 
now.  And  how  long  will  it  now  be  before  the  generals  who 
command  these  heterogeneous  multitudes  of  men  in  arms  can 
be  sure  that  their  own  lives  are  safe  amid  their  troops?  Wh^t 
is    hunger    doing   to   change   the    mood    and    temper    of    the 


I 


May  4,  1918. 


Cbe  5nve8tot8'  IRevtew, 


441 


populations  within  tiitse  empires?  There  must  be  in  Germany 
itself  many  men  istill  alive  whose  memory  goes  back  to  the  war 
of  1870-71,  that  triumph  of  Prussia  over  surprised  and  mis- 
governed France  out  of  which  the  present  madness  of  the 
Teutonic  races  has  sprung.  They  are  continually  told  now 
of  "  glorious  victories "  that  fill  the  histrionic  imagination 
of  William  the  Kaiser  with  "proud  joy,"  but  what  follows 
these  victories  resembles  in  ro  way  the  sequel  to  the  victories 
of  1870 — victories,  moreover,  that  were  hard  won,  that  caused 
great  sacrifices  much  more  costly  than  the  Prussians  ever  admit, 
but  which  were  none  the  less  definite  triumphs.  Now  there 
is  no  triumph  following  victory.  In  all  this  war  no  decisive 
victory  has  ever  been  won  by  the  Teutonic  hosts  in  fighting. 
Paris  has  not  been  captured,  the  coast  has  not  been  reached, 
dates  given  for  the  attainment  of  definite  goals  are  always 
falsified,  and  meanwhile  German  men  from  boyhood  to  the 
threshold  of  old  age  are  being  consumed  at  a  rate  which 
cannot  but  undermine  for  generations  the  recuperative  power 
of  the  race.  What  do  the  older  disillusioned  Germans  think 
of  it  all?  We  do  not  ask  a  question  of  this  kind  with  any 
idea  that  a  mood  favourable  to  our  peace  may  be  developing 
amongst  these  beguiled  multitudes.  Many,  we  daresay,  are 
ready  to  "talk  peace,"  but  not  to  accept  our  peace.  We  do 
not  want  them  to  just  yet.  What  we  should  like  to  know  about 
is  the  consequences  likely  to  follow  disilltisionment  for  the 
tvrants  of  Germany  themselves.  Will  not  the  people  call  proud 
Junker,  astute  Jew,  and  chattering  professor  to  account  for 
the  lies  they  have  told,  for  the  dem^ands  made  upon  them,  and 
for  their  irretrievable  losses?  When  the  Germans  reveal 
strength,  courage  enough  to  deal  justice  to  their  oppressors,  to 
work  out  their  own  freedom,  they  will  begin  to  be  worthy  of 
readmittance  into  the  brotherhood  of  peoples  civilised.  But 
there  is  much  more  killing  to  be  done  ere  that  day  dawns. 
Germans  as  a  race  mistaught  and  servile  will  probably  dream 
on,  hugging  illusions  about  "  enlarging  the  frontiers "  and 
recouping  indemnities  to  deliver  them  from  ruin  until  they 
are  told,  "  You  must  lay  down  your  arms  unconditionally 
before  we  can  talk  at  all." 


The  Week  in  Minos. 


The  Mining  markets  have  shown  a  gradually  improving  ten- 
dency this  week,  and  business  has  broadened  out  somewhat. 
Movements  in  prices  are  generally  favourable  to  holders  again, 
and  particular  strength  has  been  developed  by  Broken  Hills  on 
the  new  zinc  concentrate  contract  with  the  Imperial  Government, 
while  tin  shares  have  been  bought  on  the  further  rise  in  the 
price  of  the  metal  to  the  record  figure  of  ^^360  per  ton. 

South  and  West  Africans. 
In  the  South  African  market  New  Modderfonteins  have 
regained  %  to  22,  Modder  B's  have  risen  -ft-  to  7%,  and  Gold 
Mines  Investment  is.  to  21s.  On  the  other  hand,  Modder  Deeps 
have  fallen  }i  to  7,  and  Brakpans  at  45^,  Springs  at  3  25-32,  and 
Central  Minings  at  5^  show  slight  losses.  Among  Rhodesian 
.shares  Gaikas  have  been  actively  bought,  presumably  by 
insiders,  and  are  %  higher  at  f|.  Shamvas  have  also  been 
well  supported,  and  show  a  rise  of  %  to  iff,  ex  dividend. 
Lonely  Reefs  at  32s.  6d.  are  is.  3d.  higher,  and  Chartereds 
have  risen  is.  to  15s.  3d.  With  regard  to  the  Rhodesian  land 
case  it  is  felt  in  the  market  that  the  worst  result  would 
probably  mean  that  the  company  would  receive  substantial  com- 
pensation in  respect  of  its  expenditure  on  various  public 
services  amounting  to  about  7  or  8  millions  sterling.  Premier 
Diamond  deferreds  declined  %  to  6%  on  the  dividend 
declaration  of  5s.  a  share.  Of  the  West  Africans,  the  only 
interesting  movement  has  been  a  rise  to  7s.  3d.  in  Fanti  Consols. 

Copper  and  Miscellaneous. 
Copper  shares  generally  have  met  with  support.  Rio  Tintos 
have  risen  2  points  further  to  67J4  in  anticipation  of  the 
introduction  of  the  shares  on  the  Spanish  bourses,  and  Mount 
Lyells  at  26s.  gd.  and  Hampdens  at  27s.  are  better.  Ex- 
ceptionally, Mount  Elliotts  have  lost  }(  at  2%.  Broken  Hills 
have  continued  to  meet  with  support  on  the  Imperial  zinc  con- 
centrate contract.  Zinc  Corporations  have  spurted  2s.  to 
21S.  6d.,  and  Souths  are  up  to  io%.  Interest  in  West 
Australian  shares  revived  on  news  from  the  Golden  Horseshoe 
mine  that  on  the  3,260  ft.  level  No.  4  lode  had  been  cut,  assay- 
ing ;^5  per  ton  over  a  width  of  7  ft.  The  shares  rose  -^  to 
2yi,  and  Ivanhoes  sympathetically  improved  to  iff.  Tin  shares 
have  been  active  and  strong  on  the  rise  in  the  metal,  but 
interest  has  rather  shifted  from  the  Cornish  to  the  Nigerian 
group.  Rukubas  have  risen  is.  3d.  to  8s.  3d.  and  South  Bukerus 
IS.  6d.  to  i6s.  6d.,  both  in  anticipation  of  dividends  shortly. 
Gurum  Rivers  have  improved  to  7s.  3d.  on  the  report,  and 
Champions  are  up  to  7s.  3d.  and  Anglos  up  to  15s.  3d. 
Aramayo  P  ranckes  are  again  yi  higher  at  2j^  on  further  con- 
sideration of  the  report.  Mexican  shares  show  a  general 
advance,  notably  Mexico  of  El  Oros.  which  were  bought  on  the 
issue  of  the  report,  and  rose  -j^  to  5]^.  Indian  shares  are 
firmer,   and  Kanbauk  Wolframs   are  is.  higher   at  26s. 


MINING  NEWS. 

Rhodesian  Mineral  Output. — The  production  of  gold  in 
March  declined  further,  the  total  showing  a  decrease  of  ;f2,ooo 
on  February,  and  of  ;f7o,i6o  on  March,  1917.  The  following 
table  shows  the  production  since  January,  1914  : — 


Month. 

1914. 

1915. 

1916. 

1917. 

igiS. 

January  

February    

Marcb 

£ 
249,032 
259.888 
273,236 
295.907 
290,062 
306,421 
320,670 
316,972 

309. 39« 
337.241 

309.669 

£ 

299.686 
!;i:'8j^ 

344.493 

32i,<«5 
339.967 
313.160 
331,376 

318,586 
3'3,769 
335.368 
339.386 
323.783 
333.070 
322.365 
338,001 
322,035 
325.608 
317.135 
306,205 

2967113 

2»9.734 
300,183 
297,977 
299.271 
302,195 
288,731 
294.359 
291.367 
289,978 
275,830 
270,616 

253.807 
232.023 

April    

May 





lah  .               

_ 

_ 

September 

October 

November 

Uecwnber 

- 

Totals.. 

3,580,207 

3.»23.>66 

3.895.311 

3.495,353 

715.853 

The  number  ol  producers  was  142,  or  18  less  than  in  February, 
and  the  output  of  other  metals  was  15,129  ounces  of  silver,  41,023 
tons  of  coal,  306  tons  of  copper,  415  tons  of  asbestos,  i  ton 
of  wolframite,  15  tons  of  arsenic,   and  16  carats  of  diamonds. 

Crown  Mines. — The  prpfits  of  this  big  Rand  amalgamation 
for  191 7  show  a  further  diminution.  The  total  was  ;^628,898, 
against  ;^773,233,  involving  a  reduction  in  the  dividend  from 
50  to  40  per  cent.  But  the  carry  forward  is  raised  from 
;^i88,645  to  ^^359,235.  After  allowing  for  ;^i4i,72o,  the  nett 
receipts  from  bewaarplaatsen  moneys,  the  capital  expenditure 
was  only  /i3,i23.  There  were  milled  2,100,000  tons,  a  de- 
crease of  166,000  tons,  for  a  yield  of  25s.  gd.,  against  25s.  6d. 
per  ton.  Owing,  however,  to  an  increase  in  costs,  the  working 
profit  decreased  from  7s.  2d.  to  6s.  5d.  per  ton.  Reserves  of 
ore  have  decreased  from  11,429,000  tons  to  8,988,000  tons, 
valued  at  6.3  dwts.,  the  decrease  being  due  partly  to  the  rise  in 
costs.  Payable  tonnage  exposed  during  the  year  amounted  to- 
1,366,000  tons,  of  an  average  value  of  7.1;  dwts.  per  ton. 

Village  Deep. — The  nett  profits  for  1917  were  ^^225, 773,  as 
compared  with  ^■268, 745.  This  reduction  in  profits  is  re- 
flected in  the  dividend,  which  is  i6i  per  cent.,  against  18J  per 
cent.,  but  the  balance  carried  forward  is  raised  from  jf  124,070 
to  ^160,061.  Owing  to  the  scarcity  of  native  labour  the  ton- 
nage milled  decreased  from  626,900  to  612,800,  but  the  yield 
per  ton  was  4d.  higher  at  29s.  lod.  per  ton.  Working  costs, 
however,  were  increased  by  is.  gd.,  and  the  rate  of  profit  thus 
declined  from  8s.  63.  to  7s.  id.  per  ton.  The  sum  of  ^(^22,931 
was  expfended  on  capital  account.  Reserves  of  ore  have  de- 
creased from  2,378,100  tons  to  1,874,000  tons,  the  value  being 
6.6,  against  6.8  dwts.  per  ton.  The  decrease  in  quantity  is 
due  to  a  large  tonnage  of  partially  valued  ore  carried  forward, 
and  229,000  tons,  previously  included,  but  now  set  aside  pend- 
ing the  return  of  cheaper  working  conditions.  The  poor  zone 
on  each  side  of  the  main  incline  .shaft  has  continued  in  depth. 
On  that  account  the  proportion  of  unpayable  ore  developed  is 
greater  than  hitherto.  The  use  of  rock  drills  on  a  large  scale, 
following  the  insuflSciency  of  native  labour,  resulted  in  a 
greater  sloping  width  than  was  desirable,  which  accounts  for  a 
portion  of  the  increase  in  costs. 

City  Deep. — The  profits  of  this  mine  in  1917  also  show  a  de- 
crease, the  total  being  ^682,019,  against  £7^5'°$°-  B"'  **'^ 
dividend  was  maintained  at  45  per  cent.,  and  the  balance 
carried  forward  is  raised  from  ;f 21 1,211;  to  ;^2 16,462.  Capital 
expenditure,  after  allowing  for  /10,26s  of  r>«t  receipts  from 
bewaarplaatsen,  shows  a  nett  debit  of  ^28,441.  The  tonnage 
milled  rose  from  725,700  to  744,100,  but  the  average  yield  was 
id.   lower  at  39s.   6'd.   per   ton.     Costs  averaged    is.    5d.   more,. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to   its  Policyholders  in   1917  over 
£9,700,000 

or  over  831,000  for  each  Working  Day. 


The  Yokohama  Specie  Bank,  Etd.,  London,  announces  that 
/2oo,ooo  4i  per  cent,  bonds  of  the  2nd  series  of  the  sterling  loans 
of  1905  have  been  purchased  on  behalf  of  the  Imperial  Japanese 
Government   for  the  purpose  of  cancellation. 


THE  COMMERCIAL  BANK  OF  LONDON. 

LIMITED. 

CURRENT  ACCOUNTS  opened,  and  every  description  of  Banking 

business  transacted.     Bills  discounted,  and  advances  made  to 

customeis  on  approved  security. 
SPECIAL    FACILITIES    GRANTED    TO    COMMERCIAL    AND 

INDUSTRIAL  UNDERTAKINGS. 
THE  PURCHASE  AND  SALE  OF  SECURITIES  undertaken,  also 

the  receipt  of  dividends. 

COUPONS  AND  DRAWN  BONDS  negotiated. 
DEPOSITS  received  at  call,  or  for  fixed  periods,  at  rates  which  may 

be  ascertained  on  application. 
6,  Austin  Friars,  London,  E.G.  2.  ARTHUR  H.  KING,  UAnagcr. 


442 


^be  Jnvestors'  IReview. 


May  4,   1918. 


and  the  working  profit  was  thus  reduced  from  19s.  ^d.  to 
173.  I  id.  per  ton.  In  addition,  there  was  a  profit  from  the 
treatment  of  accumulated  slimes  of  £t,T3^-  Shortage  of 
nativa  labour  .supply  prevented  the  treatment  plant  running 
more  than  80  per  cent,  of  its  capacity.  Reserves  of  ore  have 
decreased  by  349,200  tons  to  3,326,900  tons,  valued  at  9  dwts. 
I^er  ton.  The  decrease  is  due  chiefly  to  the  elimination  for  the 
present  of  certain  low-grade  blocks  of  ore  on  account  of  the  in- 
crease in  working  costs.  To  the  west  of  No.  2  .shaft,  for  a 
length  along  the  .strike  of  about  2,000  feet,  all  the  drives  from 
the  loth  to  the  14th  levels  have  been  in  a  zone  of  low-grade  ore, 
but  the  experience  of  neighbouring  mines  encourages  the  belief 
in  an  improvement  in  value  towards  the  west.  East  of  No.  i 
^haft  the  reef  is  broken  up  by  a  series  of  large  faults,  and  it  is 
not  |X)ssibIe  at  present  to  form  a  reliable  opinion  as  to  the  pro- 
spects in  this  locality. 

-Anglo-French  Exploration. — The  accounts  for  1917  show  e. 
r.ett  realised  profit  of  £t,T,(^<),  again.st  .^63,523.  The  dividend 
is  reduced,  therefore,  from  10  to  y\  per  cent.  A  valuation  of 
.assets  at  the  end  of  the  year  showed  that  they  exceeded  capital 
and  liabilities  by  ^^81,718,  as  compared  with  £,12,0,^16.  A 
sum  of  ;f24,764  is  written  off  on  account  of  depreciation,  and 
the  carry  forward  is  cut  down  from  ;f48,5i3  to  ;^4i,7o5. 

Mkxico  Mines  of  El  Oro. — This  company,  which  resumed 
milling  operations  in  September,  1916,  did  very  well  in  the 
year  ended  June  30  last.  Its  profits  amounted  to  £,-i-^\,\-jif, 
■which  compares  with  a  loss  of  ;f 32,054  in  1915-16.  Two  divi- 
dends amounting  to  iis.  per  share  have  been  paid,  free  of  tax, 
absorbing  ^115,500;  the  sum  of  ^2,699  has  been  written  off 
rest  of  permanent  improvements,  and  ;f  7,763  has  been  absorbed 
in  taxes.  Working  costs  have  risen  considerably.  Reserves  of 
ore  now  stand  at  457,100  tons,  having  an  average  value  of 
$11.89  gold  and  8  ozs.  of  silver  per  ton.  The  directors  propose 
to  set  aside  approximately  ;f  100,000  from  the  available  funds 
for  investment  in  an  exploration  company  to  be  formed  with  a 
capital  of  approximately  ^200,000  to  acquire  mining  proposi- 
tions in  Mexico,  the  present  being  regarded  as  a  favourable 
opportunity  for  making  such  acquisitions. 

Rani)  Mines. — A  cabled  summary  of  the  report  for  1917 
shows  a  profit  of  ;£863,682,  as  compared  with  ^953,181  in  1916, 
and  ;f 886,356  in  1915.  The  dividend  has  been  reduced  from 
150  to  145  per  cent.,  and  ;if  348,898  is  carried  forward,  as  com- 
pared with  .1^334,091.  After  writing  off  ^£'198,199  from  reserve 
account  to  meet  depreciation,  the  book  value  of  shareholdings 
and  investments  stands  at  ^^3, 242,021,  which,  it  is  stated,  is 
■considerably  below  market  value.  The  reduction  in  the  divi- 
dend was  due  to  the  smaller  dividends  declared  by  a  number 
<if  the  companies  in  which  the  Rand  Mines,  Ltd.,  are  in- 
terested. 

Aram.wo  Fr.ancke.— The  report  of  this  Bolivian  tin  and 
wolfram  mining  company  for  the  year  ended  May  31,  1917, 
makes  a  very  favourable  showing  owing  to  the  high  price 
realised  for  the  products.  In  Bolivia  the  nett  profit 
was  ;f  225, 315,  as  against  ^"167,557;  it  is  explained  that  the 
increased  sale  of  tin  ore  in  stock  at  higher  prices,  coupled 
with  the  sales  of  silver  ore  and  sulphides,  which  are  an  im- 
portant new  source  of  revenue,  more  than  account  for  the  en- 
larged profits.  There  remains  after  the  redemption  of  the 
lost  ;^  10,000  of  debentures  and  other  deductions  a  balance  of 
^'198,314.  It  is  proposed  to  pay  a  bonus  of  3s.  per  share, 
making  30  per  cent,  for  the  year,  an  increase  of  15  per  cent., 
and  to  carry  forward  £fii,TT],  against  ^^62,590.  On  account 
of  the  current  year,  a  fourth  interim  dividend  of  is,  per  share 
will  be  paid  this  month. 

Balaghat. — The  report  for  191 7  shows  that  the  output  was 
increased  from  ^75,177  to  ;f84,437.  This  increa.se  is  attri- 
"buted  to  higher  grade  ore  having  been  sent  to  the  mill,  and  to 
a  better  extraction  in  the  sands  plant.  The  average  yield  was 
2  dwts.  higher  at  14  dwts.  per  ton.  A  profit  of  ;f5,o63  was 
made,  as  compared  with  ^^2,937,  and  the  debit  carried  forward 
is  thus  reduced  from  ;^24,968  to  ^^22,941.  Reserves  of  ore 
liave  been  increased  by  428  tons  to  30,076  tons.  The  super- 
intendent at  the  close  of  his  report  adheres  to  the  view  ex- 
pressed last  year  that  the  outlook  for  the  future  is  reassuring. 


PUBLIC     INCOME     AND    EXPENDITURE. 


There  was  one  thing  that  Mr.  Prothero  forgot  to  explain 
when  telling  the  House  of  Commons  why  Lord  Berkeley  had 
issued  a  notice  to  his  tenants  that  he  was  going  to  raise  their 
rents.  The  reason  why  this  sitep  was  taken  was  given  clearly 
<-nough.  His  lordship,  according  to  Mr.  Prothero,  "  found 
himself  called  upon  to  pay  immediately  a  sum  which  was  nearer 
a  million  than  three-quarters  of  a  million  of  imoney  for  mort- 
gages called  up  and  estate  and  death  duties."  Now  what  we 
should  like  to  know  is  what  did  these  mortgages  represent.  Was 
it  money  s.pent  to  imiprove  the  estate,  or  money  squandered  or 
settled  upon  dependents  of  the  Berkeley  family  without  refer- 
<'nce  to  the  people  who  produced  the  wealth?  If  the  latter, 
then  what  moral  right  has  Ix>rd  Berkeley  to  raise  the  rents  of 
his  farmer  tenants  in  order  to  pay  debts  which  they  had  no 
hand  in  contracting  and  never  got  any  benefit  from?  About 
80  per  cent,  of  the  20,000  acres  comprised  in  the  particular 
estate  in  question  is  grazing  land.  That  of  itself  seems  to  make 
It  certam  that  there  was  little  or  nothing  sipent  by  the  landlord 
to  improve  that  land.  How  much  of  it  was  originally  common 
land? 

Imports  into  South  Africa  in  January,  as  shown  in  the 
Customs  returns,  amounted  to  ;£4,332,ooo,  Durban  heading  the 
list  with  ;£i, 580,000,  Capetown  being  second  with  ^1,248.000, 
and  Port  Elizabeth  a  good  third  with  £<^2,o^ya.  Exports 
amounted  to  ;^i,9io,ooo,  and  the  gross  revenue  duty  collected 
«  as  ;^540.ooo. 


The  following  are  the  recipts  into  and  issues  out     of 
Exchequer  between  April  1,  1918,  and  April  27,  1918: — 


the 


Balances  in   Exchequer   on 

April  I— Bank  of  EnzUnd  . . 

Bank  of  Ireland 


Revenue. 

Customs 

Excise  

Estate,  &c.,  Duties 

Stamps 

Land  Tax 

House  Duty    

Property  and  Income  Tax  and 

Super  Tax    

Excess, Profits  Duties,  &o.. 

i^and  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    from    Sundry 

Loans,  &c 

M  iscellaueous 


Estimate       I  '''°f' i";l!.'P" 
frtr  tk*  '"*o  the 

v«lr  [Exch^uerfrom 


1,668.  OS 


3 1 ,030,050 


5-557-OCO 

2,977,000 

2,030,000 

501,000 

190,000 


16,612,000 
16,512,000 

45.000 
2,200,000 

50,000 

886,394 


Kevenue 
Total 


Other  Receipts. 
Repayment  of  Advances  for  Bullion   ....,, 

For  Treasury  Bills(tor  supply)    , 

For  5  per  Cent.  Exchequer  Bonds.  1922    . , 
For  3  per  Cent.  Exchequer  Bonds,  1930 
For  Wat  Savings  Certificates. 


47.560.394 


For  other  Debt  (War  Loan  Acts,  1914-1917)  .. 
For  4  per  Cent.  War  Loan,  1929-1942,  and  5  per. 

Cent.  War  Loan,  1929-1947    ! 

For  National  War  Bonds    1 

Temporary  Advances— Ways  and  Means I 


68,590,424 


310,000 
334,079,000 

4,100 
9,300,000 

39,884,228 


♦66,470.000 
77,500,000 


Total  . 


596. 137*752 


Total   Receipts 

into  the 
Exchequer  froDi 
April  I,  1917,  to 
April  aS,  1917. 


t 

«5.2n9,947 
1,225,912 


26.435.8.*9 


5,258,000 

3,2  |0  OJO 

2,230,000 
359.000 

310,000 

I4,03i.oro 

14.431.000 

70,000 

2,200,000 

50,000 

500 
457,336 


42.576.836 


69,012,695 


150,000 
164,068,000 
14,834,000 

3,400,000 


37,500,oco 
76,055,000 


365,019,695 


^Excluding  sates  through  joint  stock  and  private  banks  not  yet  brought  to  account. 


Expenditure 
and  other  issues. 


Estimate  for 
the  Year 
1918-19. 


Total  Issues 
out  of   the  Ex- 
chequer to  meet 
payments   from 
April  I,  1918,  to 

April  27,  191 8. 


Total  issues 
out  of  the   Ex 
chequer  to  meet 
payments    from 
April  I,  1917.  tc 

April  28,  1917. 


Expenditure. 
Permanent  Charge  of  Debt  .. 
Interest,  &c.,  on  War  Debt .. 
Payments  to   Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    


Expenditure 


Other  Issues. 

For  Advances  for  Bullion  

For   Advances    for    Interest    on    Exchequer 

Bonds     under    the     Capital     Expenditure 

(Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Omce  (London)  Railway  Act,  1913 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supply 

For  War  Loans,  Exchequer  Bonds,  &c., under 

Section  34  of  Finance  Act,  1917  

For  War  Expenditure  Certificates  under  War 

Loan  Act,  igi6    

For  other  Debt  under  the  War  Loan  Acts, 

1914  to  1917 

For  Depreciation   Fund  under    the    Finance 

Act,  1917  

Old    Sinking    Fund,     1910-11,    issued    under 

the  Finance  Act.  1911,  Section  16  (i)  (b)  .. 
Temporary  Advances  repaid— Ways  and  Means 


I      19x8. 
April  37- 
Balances  in  Exchequer—  £ 

Bank  of  England 15,584,884 

Bank  of  Ireland |    1.9751031 


191 7. 
April  38. 

i 
22,128,759 
1,120,798 


Total . 


i 

3,706,446 
15,458.729 

190,000 

197,882 
190.004,500 


208,557.557 


84,939 

12,000 

106,300 

+353.208,000 

1,918,442 

+9,400 

3,451.207 

2,€60,O2a 

20,000 
8,000,000 


578.577.837 


17.559^915 


596.137,752 


3.171.684 
5.526.316 

190,000 

230,139 
163,899,000 


173.017,139 


280,000 


84.909 
20,000 

t75,4C0 
96,851,000 

21,690 


71,320.000 


341.770,138 


23.249.557 


365,019.695 


Memo. — Treasury  Bills  outstanding  on  April  27,  igx8 *£9S3.723.ooo 

*  Includes  ^^270,000,  the  proceeds  of  which  were  not  carried  to  the  Exchequer 
within  the  period  of  the  account,  besides  a  part  (not  yet  ascertained  and 
brought  to  account)  of  the  Bills  tendered  as  subscriptions  to  National  War  bonds 

\  Includes  part  payment  of  Bills  and  Certificates  tendered  as  subscriptions 
to  National  War  Bonds 


BOOKS    RECEIVED. 


Rubber  "  Form  "  at  a  Glance.  A  Guide  to  Investors  in 
Rubber  Shares.  Compiled  by  H.  K.  Calder,  lo,  Old  Broad 
Street,  London.     Price,  5s.  nett. 

Nitrate  Facts  and  Figures,  1918.  Compiled  by  A.  F.  Brodie 
James,  F.S.S.  Price,  5s.  nett.  Publishers,  Fredc.  C.  Mathie- 
son  and  Sons,  16,  Copthall  Avenue,  London. 

Dividend  Income-Tax  Tables.  Xo.  20,  for  deductions  at 
5s.  gd.  in  the  £.  Price  is.  Publishers,  Effingham  Wilson, 
54,  Threadneedle  Street,  E.C.  2. 


Mav  4,  1918. 


TLbc  3nve8tov6'  IRevievv. 


443 


Insurance    News. 


Increased  profits  were  made  by  the  Union  Assurance  Society 
in  1917,  with  the  result  that  profit  and  loss  account  showed  an 
available  surplus  of  £<)2,202,  against  ;,^74,5i2  in  1916,  of  which 
ji'90,000,  against  j^70,ooo,  is  distributed  in  dividends.  The 
total  was  arrived  at  after  transferring  ^^2,085  more  at  ;{,  13,295 
to  investment  reserve  and  contingency  account.  The  nett  fire 
premium  earned  was  ;^7S5,i32,  an  increase  of  .1^108,747;  claims 
were  £63,201)  heavier  at  £3(14,^^8,  the  loss  ratio  being  48.28  per 
<:ent.,  as  compared  with  46.61  per  cent.  Expenses  increased  by 
^26,660  to  ;if  244,905  (32.43  per  cent.,  against  33.76  per  cent.). 
Hut  ;^io,ooo  more  at  ;^6o,ooo  was  transferred  to  profit  and  loss, 
leaving  the  fire  fund  at  ;f 952, 136,  or  ;^85,64o  more 

.\n  increased  life  business  was  reported  by  the  Yorkshire  In- 
surance Co.  in  1917,  the  number  of  policies  issued  being  987,  or 
298  more,  for  gross  new  sums  assured  of  ;^'492,4o6 — an  increase 
■of  Z^S'.SgS.  Deducting  reassurances,  the  nett  amount  retained 
■was  ^474,306,  or  ^^75,631  more  than  in  1916.  The  total  nett 
premium  income  of  2^219,189  was  ^6,998  more.  Claims,  in- 
<;luding  bonuses,  were  only  ;^8,97o  heavier  at  ^142,614,  and  the 
addition  to  the  life  and  annuity  funds  was  ;f  125,000,  raising 
Ihe  total  to  £2,c)2i,82y.  Xett  fire  premiums  at  ;^6o9,i23  showed 
an  increase  of  ;^i26,i9g,  while  claims  were  ;^68,o55  more  at 
^295, 700,  the  loss  ratio  being  48.5  per  cent.,  against  47.1  per 
-cent.  The  sum  of  £6,-],ck-],  or  ;^i9,348  less,  has  been  carried  to 
profit  and  loss,  and  the  reserve  for  unexpired  liability  increased 
from  ^193,200  to  ;^243,65o.  There  was  an  expansion  of 
j/^2y9,oi3  in  the  marine  premium  income  to  ;^i,538,205,  and 
after  deducting  claims  and  expenses,  carrying  /■25o,ooo,  against 
j,^ioo,ooo,  to  profit  and  loss,  the  balance  was  ^^241,453  higher  at 
;i^''258,334-  After  placing  jf  110,000,  or  ;^io,ooo  less,  to  general 
reserve,  and  paying  the  same  dividend  as  in  1916,  ;^78,585  is 
carried  forward,  against  ^79,217  a  year  ago,  when  jf  10.000  was 
added  to  pension  fund.  General  reserve,  after  the  transfer  of 
^70,000,  or  ;^2o,ooo  more,  to  investment  reserve  to  cover  the 
further  depreciation  in  the  value  of  securities,  now  stands  at 
^563,988,  an  increase  of  ^^40,000. 

kxcellent  results  were  achieved  in  191 7  by  the  London  Guar- 
antee and  Accident  Co.,  the  total  premium  income  at  ;f2, 179,440 
showing  an  increase  of  ;,f  597,783,  of  which  ^470,730  is  attri- 
butable to  the  United  States  business,  the  increase  in  that 
country  being  mainly  due  to  the  continued  prosperity  and 
higher  rates  of  wages  which  prevailed  during  the  year.  The 
total  outgoings  at  ^917,992  showed  an  increase  of  ^^213, 177. 
During  the  j'ear  the  marine  business  has  been  further  extended, 
and  arrangements  were  made  whereby  direct  underwriting  was 
begun  on  June  i,  1917.  After  transferring  ^^65,000  to  the  in- 
vestment reserve  fund  and  the  payment  of  the  interim  dividend 
f7s.  6d.  a  share  on  the  ordinary,  against  5s.).  the  available 
balance  was_;,f2,733  more  at  ^28,196.  A  final  dividend  of 
I2S.  6d.,  against  us.,  raaPes  the  distribution  for  the  year  20s. 
a  share,  against  16s.,  and  the  carry  forward  is  raised  by  ^^858 
to  ;f  10,826. 

The  profits  realised  by  the  Scottish  Union  and  National 
Insurance  Co.  in  1917,  including  interest  and  the  balance 
brought  in,  were  ;,f3r2,74g,  an  increase  of  ^^34,652.  Investment 
reserve  again  receives  jf  30,000 ;  excess  profits  duty  requires 
,•£'50,000,  whereas  a  year  ago  the  provision  made  for  excess 
profits,  if  any,  was  ;f  30,000.  Last  year  ;^5o,ooo  was  utilised  in 
writing  off  the  balance  of  purchase  account.  Maritime  Insurance 
Co.,  whereas' in  1917  no  such  item  was  required.  After  paying 
the  same  dividend,  namely,  20  per  cent.,  the  carry  forward  is 
raised  from  ;^45'225  to  ;^  127,899.  The  total  funds  were  in- 
creased by  ^^408,623,  following  an  increase  of  £223,()'i-j.  In 
the  life  department  1,557  policies  were  issued  for  a  gross 
amount  of  ;f853,g4o,  an  increase  of  loi  in  the  number  and  of 
.■6'23.2'3;  the  nett  amount  retained  was  ^1,153  more  at 
jf70o,i63.  Nett  claims,  including  bonus  additions,  came  to 
pf  90,006  less  at  ;^6o6,203.  An  increase  of  jf  122,308  to  ,^964,030 
was  shown  in  the  fire  premiums ;  claims  came  to  /■  36,644  more 
St  ^£484, 352,  and  expenses  were  ^42,833  heavier  at  ;^337,226. 
Including  interest  the  surplus  was  ;^  161, 234,  an  increase  of 
jf44,956.  Of  this  surplus  ;^6i,i54  against  ^^22,529  was  added 
to  the  fire  funds.  An  underwriting  profit  of  ^^80,000,  or 
;f  10,000  more,  was  made  on  the  marine  business,  and  ;^i7o,940 
against  ;fi95,898  was  added  to  the  fund  for  unexpired  risks 
and  unsettled  claims. 

For  each  of  the  20  years  to  1917  10  per  cent,  has  been  paid 
by  the  National  Benefit  Assurance  Co.,  including  a  bonus  of 
3  per  cent,  each  time.  Owing  to  the  increase  in  the  business 
the  directors  are  of  the  opinion  that  the  capital  should  be  in- 
creased, and  a  special  meeting  is  to  be  called  in  due  course. 
The  authorised  capital  is  ;^  120,000,  of  which  ;^  104,805  has  been 
subscribed  and  ^^47,291  paid  up.  Nett  premiums  for  1917  at 
.if  701,023  showed  an  increase  of  no  less  than  ;f  456, 945.  Sanction 
has  been  obtained  to  the  company  transacting  "  employers' 
liability  business,  and  the  statutory  deposit  of  ^^20,000  has 
heen  made.  The  marine  business  .showed  a  substantial  increase, 
and  after  transferring  ;if  41,950  to  profit  and  loss  the  amount 
carried  forward  to  provide  for  unexpired  risks  was  ^^214, 716. 
In  the  fire  and  general  departments  the  nett  income  was 
£20,121  higher  at  ^£63,498,  while  in  the  life  section  the  figures 
also  showed  a  satisfactory  increase,  with  the  result  that  ;if  5,893, 
which  appeared  in  the  last  balance-sheet  under  the  head  of 
establishment  account,  has  been  written  off. 

The  two  main  features  disclosed  by  the  results  attained  in  the 
year  to  June  30,  1917,  by  companies  transacting  fire,  marine, 
and  accident  insurance  business  in  New  South  Wales  are  that 
the  fire  business,  after  the  improvement  which  took  place  in  the 
preceding  year,  has  again  ceased  to  be  profitable,  and  that  the 


hailstone  business  was  a  severely  losing  one.  A  trifling  ap- 
parent surplus  shown  on  the  fire  accounts  was  insufficient  to 
cover  the  increase  in  the  reserve  required  for  unexpired  risks. 
Taking  tlie  figures  for  the  last  three  years  together,  a  ni;aterial 
loss  was  shown  by  the  fire  business  in  New  South  Wales.  As 
regards  the  hailstone  business,  the  loss  ratio  for  the  past  year 
was  over  400  per  cent.,  and  a  good  many  years  of  favourable 
business  will  be  required  to  balance  the  loss  of  1916-17. 


DIVIDENDS    ANNOUNCED. 


African  Steam  Ship  Co. — 5  per  cent,  for  six  months  ended 
December  31,  with  interim  of  5  per  cent.,  making  total  10  per 
cent,  for  1917,  tax  free,  same  as  for  1916. 

Alliance  Assurance  Co. — 12s.  per  share  (less  tax)  out  of  profits 
and  accumulations  at  close  of  1917.  An  interim  5s.  per  share 
(less  tax)  paid  in  January,  and  balance  of  7s.  per  sliare,  pay- 
able on  July  5.     A  year  ago  the  same. 

Bell's  United  Asbestos  Co. — Balance  of  is.  6d.  and  bonus 
of  6d.  per  share,  with  interim  paid  in  October,  making  15  per 
cent,    for  year,  the  same  as  for   1916. 

Belsize  Motors. — Interim  on  ordinary  shares  of  4  per  cent. 
(actual),  less  tax,  same  as  last  3'ear. 

British  and  Benington's. — Final  on  ordinary  shares  of  5  per 
cent.  (6d.  per  share),  making,  with  interim,  7J4  per  cent,  for 
1917;  forward,  £3,661.  For  1916  an  interim  of  6d.  per  share 
only  was  paid,  with  ^'2,650  forward. 

S.  and  W.  Berisford. — Interim  10  per  cent.,  compared  with 
5  per  cent,  last  year. 

Burma  Railway  Co. — In  addition  to  guaranteed  interest  of 
£x  5s.  an  interim  £\  5s.  per  cent,  in  respect  of  surplus  profits, 
payable  July   i,  both  less  income-tax. 

Clan  Line  Steamers.— Final  20s.  per  share  on  ordinary  shares, 
making  20  per  cent,  for  1917,   against  25  per  cent,  for    1916. 

Civic  Investment  and  Industrial  Co. — i  per  cent,  (being  at 
the  rate  of  4  per  cent,  per  annum)  for  quarter  to  April  30,  the 
same. 

City  of  Santos  Improvements  Co. — 3  per  cent.,  less  tax,  on 
ordinary  share  capital  for   1917,  the  same  as   for   1916. 

Canadian  Pacific  Railway  Co. — 2j4  per  cent,  on  common  stock, 
for  quarter  ended  March  31,  being  at  rate  of  7  per  cent,  per 
annum  from  revenue  and  3  per  cent,  per  annum  from  special 
income  account,  payable  June  29. 

Golconda  Malay  Rubber  Company. — Final  20  per  cent. 
(actual,  less  tax)  for  1917,  making  35  per  cent,  for  year;  for- 
ward, ;^6,983.     For  1916  45  per  cent,   was  paid. 

Montreal  Light,  Heat  and  Power  Company. — 2  per  cent, 
(being  at  the  rate  of  8  p)er  cent,  per  annum)  for  quarter  ended 
April  30,  the  same. 

North  British  and  Mercantile  In.surance  Company. — £2  per 
share,  subject  to  tax  (the  same  as  last  year),  payable  half  on 
May  15  and  half  on  November  11. 

Park  Gate  Iron  and  Steel.— Final  is.  gd.  per  share,  tax  free, 
making  3s.  for  year,  the  same  as  last  year. 

Royal  Bank  of  Australia. — At  rate  of  8  per  cent,  for  past 
half-year.     A  year  ago  the  same. 

South  American  Stores  (Gath  and  Chaves). — Interim  3  per 
cent,  on  preference  shares,  payable  on  May  13. 

Salar  del  Carmen  Nitrate  Syndicate. — Final  15  per  cent.,  less 
tax,  for  1917.  A  dividend  is  payable  on  whole  of  now  issued 
capital — viz.,  ;£220,ooo.     Dividend  for  1916,  15  per  cent. 

South  Indian  Railway  Company. — Interim  i^  per  cent,  (or 
at  rate  of  2^  per  cent,  per  annum),  less  tax,  from  surplus  profits 
payable  on  July  i,  as  well  as  interest  guaranteed  for  half-year 
ending  June  30,  1918 — namely,  i|  per  cent.,  less  tax — making 
total  for  half-year  3  per  cent. 

Scottish  Australian  Investment  Company. — Interim  2^  per 
cent,  on  ordinary  stock,  for  year  to  June  30  next,  payable  tax 
free  May  15.     A  year  ago  the  same,  but  paid  less  tax. 

Tekka,  Ltd. — is.  6d.  per  share,  less  tax,  payable  on  May  7. 

Whitehaven  Hematite  Iron  and  Steel  Company. — 6^-  per  cent, 
per  annum  on  ordinary  shares  for  year  ended  March  31. 

Western  Australian  Bank.— Usual  £\  per  Share. 


AUSTRALIAN 
MUTUAL  PROVIDENT 

fsW.  SOCIETY.  '84» 

The    Largest    Mutual   Life    Office    in    the    Empire. 

Funds,  £38,000,000.  Annual  Income,  £5,000,000. 

MODERATE     PREMIUMS. 

LIBERAL     CONDITIONS. 

WORLD-WIDE     POLICIES. 
Every  Year  a  Bonus  Year.     Whole-life  Policies,  «o  years  in  force,   show 
averagt  increase  of  the  sum  assured  by   Bonus  exceeding  50  per  cent. 
Endowment  Ass(;rance  Results  ai-so  Unsurpassed. 

37,Thpeadneedle  St.«  London,  E.C.  2. 


444 


Ube  investors'  IReview. 


May  4,  1918. 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Acconntiog 

Period. 


Aboukir  Co (Dec.) 

Do      Prev. 

Albion  Steam  Coal . .  (Dec.) 

Do Prev. 

Benger's  Food  ....  (Mar.) 

Do Prev. 

British*  Benningt'ns(Dec) 

Do Prev 

C  h  i  s  w  i  c  k    Electricity 
Supply (Dec.) 

Do Prev 

Cons.  Waterworks  of  Ro- 
sario (Dec.) 

Do Prev 

D.  Hill  Carter (Feb.) 

Do Prev. 

Direct  U.S.  Cable  (Mar.) 

Do Prev 

Hope  Bros (Feb.' 

Do Prev! 

Johnson  &  Phillips  (Dec.) 

Do. Prev. 

Lamb  Brewery  ....  (Mar.) 

Do Prev. 

Ix)ndon  Trust  Co. . .  (Mar.) 

Do Prev. 

Melbourne  Trust   ..(Dec.) 

Do Prev 

Prov.  of  B.A.  Waterworks 
(Dec.) 

Do Prev. 

Sheffield  Forge  and  Roll 
ing  Mills (June) 

Do Prev. 

Steel  Coulson (Feb.) 

Do Prev. 

Urban     Electric     Supply 

(Dec.) 

Do Prev. 


Gross 
Profit. 


i 

45.010 
26,130 
28,010 
5'. 790 
46,790 
46,520 


31.140 
20,520 

129,470 
124,400 
27.550 
19,940 
74.220 
74.240 


46,610 
31.940 

75.890 
76,360 


68,130 
32,840 

67.730 
64,980 


Nett 
Profit. 


i 

13.150 
400 
26,120 
49.570 
37.770 
34.320 
11,260 
9,120 

6,170 
4.040 

69,650 
73.780 
26,290 
18,740 
59,860 
69,030 
58,170 
•27,920 
70,120 
56,060 
4,270 
4.130 
84,440 
86,290 
30,700 
15.810 

16,630 
31,100 

25.470 
23,260 
12,990 
17,100 

64.520 
61,770 


Total 
Re- 
serves. 


I 

20,000 
10,000 


165,000 

165,000 

11,110 

24.460 


116,500 

106,500 

14,500 

12,000 

528,620 

502.510 

60,000 

53,000 

50,000 

40,000 

11,190 

11,190 

130,000 

120,000 

So,ooo 
75,000 

4.500 
4.500 

60,000 
50,000 
33.000 
30,000 


Divi- 
dend. 


% 

5 

5 

::| 

7i 
5 

6 
3 

8 

8 
10 

8 

4 

4 

6 

6 

7 

5 
10 

8 

6 

6 

8 

6 

S 
5 

15 
15 

5 

3 

+2i 
t2i 


Carried 
For- 
ward. 


3.740 
580 
8,190 
6,270 
2,800 
4. '50 
3,660 
2,650 

1,000 
900 

9,080 
10,880 
3.330 
8,660 


21,440 
15.9S0 
13.560 
9,960 
990 
750 
28,240 
25.180 
8,910 
4.470 

15.370 
5.490 

1,890 
3.420 
1,050 
9,310 

4.490 
1,770 


*  Six  months. 


\  Preference. 


American  Business  Notes. 


How  strenuous  and  resolute  the  effort  is  which  the  citizens 
of  the  great  Republic  of  the  Wost  is  mailciiig  to  help  us  can.  be 
estimated  from,  some  statements  scattered  .through  this  week's 
cable  news.  Mr.  Baker,  the  Wax  Minister,  is  to  propose  a  large 
and  immediiate  increase  an  the  army,  which  already  amounts  to 
nearly  2,000,000  men,  and  some  Congressmen,  notalbly  Mr. 
Kuhn,  of  California,  are  urging  the  creation  of  an  army  of 
8,000,000.  We  may  be  sure  whatever  number  of  men  may  be 
deemed  necessary  by  the  Allies  here  will  be  forthcoming.  The 
army  is,  in  fact,  to  be  increased  immediately  to  5,000,000,  and 
the  information  regarding  shipping  submitted  to  President 
Wilson's  Cabinet  on  Wednesday,  allowing  for  the  help  of  avail- 
able British  transiports,  showed  that  the  number  of  American 
troops  that  can  be  transported  across  within  the  next  90  days 
is  greater  than  any  official  of  the  Government  believed  possible. 

There  is  no  limit,  in  fact,  to  American  reinforoemenits,  ex- 
cept the  amount  of  Atlantic  shipping  accommodation,  and  the 
most  strenuous  efforts  are  being  made  in  American  shipyajds  lo 
increase  the  available  tonnage.  In  one  week  50,000  tons  of 
new  ships  were  .put  into  the  water,  and  the  latest  report  of  the 
Bureau  of  Navigation  shows  that  during  April  32  vessels,  aggre- 
ga.ting  240,000  tons,  were  launched,  or  an  average  of  8,000  tons 
a  day. 

About  food,  also,  the  news  is  good.  Mr.  Hoover,  the  Food 
Administrator,  has  been  telling  the  American  people  that  the 
Allies  have  reduced  their  cereal  consumption  by  30  per  cent, 
in  order  to  provide  the  ships  with  which  to  send  over  more 
soldiers,  and  he  added,  "  Great  Britain  and  France  are  to-day 
living  their  a.ppeals  for  more  soldiers  by  sacrificing  thedr  daily 
bread."  He  wont  on,  however,  to  give  encourageme^it  about 
the  sufficiency  of  that  bread  in  time  to  come,  for  he  declared 
that  "  a  wheat  crop  of  from  800  to  900  milWon  bushels  is  in 
prospect,"  and  that  he  had  ground  to  hope  for  "  plenty  for  our- 
selves and  our  Allies.  Instead  of  famine,  we  can  look  forward 
to  an  entirely  different  economic  situation  this  year  from  that 
which  confronted  us  in  the  summer  of   1917." 


Copies  of  THE  INVESTORS'   REVIEW  can 
be  obtained  in  Paris  at 

Messrs.  W.  H.  Smith  &  Son's, 
248,  Rue  de  Rivoli. 


Tea,  Oil  and  Rubber. 


It  is  terribly  difficult  to  get  any  .sort  of  solid  basis  with 
regard  to  the  actual  rubber  position.  Not  long  since  it  was 
announced  that  an  embargo  had  been  put  on  rubber  shipments, 
but  we  find  that  last  week  no  less  than  1,190  tons  of  plantation 
were  landed  here,  while  the  deliveries  were  only  710  tons,  leav- 
ing  stocks  in  hand  at  16,380  tons  again.st  10,760  tons  at  the 
corresponding  date  last  year.  In  the  meantime  there  is  plenty 
of  evidence  that  stocks  are  also  accumulating  not  only  in  the 
East,  but  also  in  Brazil,  and  most  of  the  reports  now  being 
issued  are  of  a  very  disappointing  character.  Unless  conditions 
change  radically  in  the  near  future  the  outlook  must  become 
worse,  because  with  restricted  outputs  costs  must  increase,  and 
it  is  small  comfort  except  to  the  most  perverse  bulls  to  be  told 
that  in  a  few  years  from  now  consumption  will  have  more  than 
overtaken  production.  Frankly  we  do  not  believe  it,  because  the 
same  tale  has  been  told  so  often  that  it  necessarily  creates 
scepticism,  and  there  is  no  reason  to  expect  that  the  people  who 
have  been  so  often  wrong  in  the  past  will  prove  right  in  the 
future.  Has  any  real  effort  ever  been  made  to  estimate  what 
American  enterprise  has  been  doing  in  the  East?  Even  our 
most  reliable  statisticians  completely  ignore  that  factor,  and  try 
to  confuse  the  public  in  a  cloud  of  Brock's  fog.  Long  before 
rubber  became  a  fashionable  medium  of  speculation  we  re- 
member a  great  operator  on  the  Stock  Exchange  saying  ;  "I 
don't  mind  any  kind  of  mining  bluff,  so  long  as  they  do  not 
make  the  mine  itself  lie.  When  I  find  that  the  mine  is  made  to 
lie  I  quit."  Are  the  rubber  magnates  trying  to  make  the 
industry  lie?  Often  it  looks  as  though  they  were,  and  we 
always  feel  uneasy  about  it,  like  our  gambling  friend  in  the 
mining  market. 


Golden  Hope  Rubber  Estate,  Ltd. — Year  to  December  31. 
— Capital  ;^44,ooo  in  £\  shares;  reserve  ;^i6,ooo.  Output 
352,240  lbs.,  against  estimate  of  305,000  lbs.  and  an  increase 
of  84,000  lbs.  over  1916.  Average  price  realised  2s.  4.7id. 
against  2S.  5.o6d.,  while  the  all-in  cost  rose  from  is.  i.4id.  to 
IS.  4.8od.  Gross  revenue  amounted  to  £^i,z,2o,  an  increase  of 
;^9,ooo,  which  was  abnost  exactly  the  gain  last  year,  but  the 
nett  profit  was  only  ;^i,ooo  higher  at  ;^i8,4oo.  It  is,  however, 
considered  prudent  to  place  ;^9,ooo,  or  £2,cpo  more,  to  re- 
serves, and  consequently  the  dividend  is  reduced  from  25  per 
cent,  to  20  per  cent.,  leaving  a  slightly  larger  balance  at  ^^5,250 
to  be  carried  forward.  For  the  current  year  the  "  restricted  " 
output  is  estimated  at  no  more  than  287,000  lbs.,  and,  of 
course,  all-in  costs  must  show  a  substantial  increase.  Culti- 
vated area  amounts  to  1,446  acres,  all  planted  in  1912  or  eailier, 
and  there  are  over  600  acres  in  reserve.  Judging  by  the  age 
of  the  estate  we  should  say  that  it  ought  to  be  capable  of  pro- 
ducing round  half  a  million  lbs.,  so  that  really  the  yield 
appears  to  be  cut  very  nearly  in  half.  Of  course,  it  is  no  use 
forcing  production  under  existing  conditions,  but  it  would  bo 
more  satisfactory  if  some  means  could  be  devised  to  reduce  ex- 
penses correspondingly.  That,  however,  would  seem  to  be  an 
impossible  feat.  The  company  is  in  a  strong  position  all  the 
same,  and  will  be  able  to  hold  its  own  whatever  happens,  even 
if  exaggerated  views  about  dividends  have  to  be  disappointed. 

Shelford  Rubber  Estate,  Ltd. — Year  to  December  31. 
Capital,  ;t"7,i25  in  £1  shares;  reserve,  ^^i  1,150.  Output, 
164,800  lbs.,  against  estimate  of  170,000  lbs.  ;  average  price 
obtained,  2s.  4.73d.,  against  2s.  7.59d.  ;  all-in  cost,  is.  o.67d., 
against  11. sad.  Revenue  showed  an  increase  of  ;^i,2oo  at 
;^3o,040,  but  the  nett  profit  comes  out  ;f3,ooo  lower  at  £i2,';or). 
Consequently  the  dividend  is  reduced  from  12J  per  cent,  to 
10  per  cent.,  and  the  balance  forward  is  just  a  little  less  at 
;^3,4oo.  Between  the  two  estates  of  Shelford  and  Sungei  Bruas 
the  cultivated  area  is  1,360  acres,  but  we  do  not  get  full  par- 
ticulars as  to  the  date  of  planting.  Mostly  the  estates  ought 
to  be  almost  in  full  bearing,  and  a  yield  of  400,000  lbs.  would 
not  be  exorbitant,  but  it  is  certain  to  be  very  much  less  under 
the  Rubber  Association's  restrictions.  The  particulars  furnished 
might  well  be  amplified  without  detriment  to  the  interests  of 
the   shareholders. 

Merton  Rubber  Syndicate,  Ltd. — Year  to  December.  Capital, 
;^25,ooo  in  2s.  shares;  reserves,  ;f  14,000.  Output,  151,230  lbs., 
an  increase  of  24,000  lbs.,  and  the  average  yield  was  318  lbs., 
against  460  lbs.  ;  all-in  cost,  is.  4.65d.,  against  is.  i.47d.  Nett 
proceeds  were  only  £^fifx>,  a  decrease  of  ;f5,40o,  and  the 
dividend  is  cut  in  half  at  10  per  cent.,  leaving  ;f  1,670,  or 
;^i,30o  less,  to  be  carried  forward.  The  cultivated  area  is 
521  acres,  nearly  all  planted  before  1912;  but  it  will  be  gathered 
from  the  foregoing  figures  that  last  year  the  trees  must  have 
been  rather  severely  tapped,  otherwise  there  would  not  have 
been  such  a  heavy  drop  in  the  average  yield.  Apparently  in 
this  case  the  restriction  of  output  will  possibly  be  beneficial. 


OILFIELDS 

Anglo-Egyptian     Oilfields.- 


PRODUCTION. 

-Past     week,    Gemsah,    20     tons 
(against  2i"'tons);  Hurghada,  4.796  tons  (against  5,377  tons). 

United    British  Oilfields  of    Trinidad.— 1,268   tons  for  week 
ended  April  24. 


May  4,  1918. 


^be  Jnvestors'  IRevtew. 


445 


Answers  to  Coprespondents. 


*.*  »  Key  to  these  Answers  will  be  posted  early 
each  week  tor  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  for  six  months,  or 
Bs.  9d.  tor  three  months. 

Deposits  against  future  queries  may  be  lodged 
with  the  Publisher. 

Kept.— If  you  can   get  them,  yes.     But  cut  off  the  premium 
from  dividends. 
Jane. — Yes,  very  safe  and  good. 
P.  T.  L. — A  fair  venture,  and  may  improve. 
Pensioned. — We  hardly  think  so,   not  now. 

R.  A.  S. — The  bond  is  quite  good,  but  you  would  lose  nothing 
in  interest  if  you  can  make  the  ex<hange  not  under  the  price 
you  name. 

T.  L.  T. — (i)  On  their  present  yield,  the  price  is  high  enough, 
but  the  company  is  strong  and  well  managed.  It  is  possible 
a  bonus  may  be  declared  later  on.  (2)  Ves,  if  you  are  prepared 
to  wait. 

J.  C.  F. — It  is  quite  a  fair  property,  and  gives  a  good  return. 

Timothy. — (i)  Has  just  issued  a  good  report.  Yield  is  fair 
and  dividends  safe.  Should  be  kept.  (2)  Very  little  margin  at 
present,  but  dividends  not  likely  to  suffer.  Too  low  to  sell  now. 
(3)  Cannot  expect  much  recovery  until  better  times.  Crop 
prospects  good,  but  working  costs  high  and  labour  troublesome. 
Still,  it  seems  a  pity  to  sell  at  present.  (4)  Under  the  arrange- 
ment with  the  Government,  there  is  a  possibility  of  some  re- 
covery in  capital  value,  but  dividends  are  rather  remote.  (5) 
Cash  dividends  are  not  likely  to  be  resumed  for  a  long  time. 
The  position  is  slightly  better^  and  any  signs  of  definite  settling 
down^  would  cause  a  sharp  rise  in  price.  We  hesitate  to  ad- 
vise you  to  cut  your  loss  now.  (6)  Conditions  are  similar  so 
far  as  the  price  is  concerned.  The  company  had  a  good  busi- 
ness before  the  war.  More  capital  will  no  doubt  be  needed,  but 
you  might  see  a  quick  rally.  (7)  Doing  very  well  at  present, 
but  cannot  see  any  reason  for  an  appreciable  rise.  There  is  not 
much  chance  for  securities  bearing  fixed  rates  of  interest  re- 
covering with  any  rapidity,  even  where  dividends  are  safe. 
(8)  Political  conditions  could  not  Be  worse,  and  prospects  of 
recovery  look  rather  remote.  You  must  choose  between  cutting 
a  heavy  loss  or  waiting  indefinitely  for  improvement.  (9)  A 
disappointing  record,  but  there  are  new  people  in  control,  and 
the  shares  have  a  speculative  chance.  (10)  Purely  speculative, 
and  prospects  vague.  (11)  The  property  is  being  gradually 
worked  out.  There  should  be  the  present  value  of  the  shares, 
but  working  costs  are  high.  Shares  of  this  class  ought  to  be 
written  down  out  of  dividends. 

Bean. — We   cannot  advise  you  to  sell   now.      The  record   is 
very  disappointing,  but  there  are  always  possibilities,  and  the 
new  control  will  probably  do  better  for  the  company  than  the 
toW. 


letters  to  the  EMtor. 


[THE    NORTHERN    ASSURANCE    CO.— A    CORRECTION. 

Dear    Sir, — In    your    reference    to    our    recently    published 

i  accounts  for  1917   you   state,  with  regard  to  the  fire  business, 

"the  loss  ratio  being  62.3  per  cent.,  against  50.3  per  cent,  for 

igi6."     Will  you  permit  me  to  point  out  that  the  comparison  is 

not  correct,  as  the  ratio  of  62.3  per   cent,  is  arrived  at  after 

•  allowing  for  50  per  cent,  of  the  increased  premiums  as  a  reserve 

i  for    unexpired    risks.      The    actual    losses    incurred    represent 

54.8  per  cent,  of   the  premium  income  against  50.3   per  cent. 

!  for  last  year,   and  the  somewhat  large  difference  is  accounted 

I  for  by  the  fact  that  this  company  reserves  50  per  cent.,  as  above 

(stated,  for  unexpired  risks  instead  of  j;ji  per  cent,  or  40  per 

!  cent. 

Yours  faithfully, 

H.  E.  W.  LUTT, 

Secretary. 
The  Northern  Assurance  Co.,  Ltd., 

No.  I,  Moorgate  Street,  E.C.  2, 

London,  April  29,   1918. 


It  is  stated  that  the  Government  of  Guatemala  has  authorised 
I  the  establishment  of  a  national  bank.  We  hope  it  is  a  sign 
jof  grace,  and  that  there  will  be  no  more  defaults  as  regards 
jforeign  creditors. 

I_  A  very  interesting  circular  is  issued  by  the  London  and 
rBrazilian  Bank,  Ltd.,  giving  a  summary  of  trade  reports  from 
South  America  and  Portugal.  Argentina  and  Brazil  naturally 
receive  most  attention,  and  a  point  that  comes  out  prominently 
is  that  stocks  of  grain,  wool,  hides,  rubber,  and  other  articles 
are  steadily  accumulating,  owing  to  the  lack  of  tonnage.  It 
may  be  useful  to  bear  this  in  mind  when  the  shipping  position 
improves. 


Notes  on  Books. 

Peace  Problems  in  Economics  and  Finance.  By  Uriel  D'Acosta. 
Second  edition,  with  a  new  preface.  (London  :  George 
Routledge  and  Sons.  Price  2s.  6d.  nett.) 
A  second  edition  of  this  little  book  is  welcome,  not  that  it 
is  the  work  of  a  profound,  original  thinker  who  lays  before 
his  readers  schemes  for  the  recuperation  of  the  world's  in- 
dustries after  the  war.  It  might  not  have  been  so  useful  and 
suggestive  had  it  taken  that  ambitious  shape,  but  it  is  a  quiet, 
sensible  review  of  the  facts,  and  contains  historic  parallels  which 
are  useful  to  recall  at  a  time  like  the  present  when  the  country 
.  is  being  deluged  with  proposals  of  many  kinds  not  often  of 
much  practical  merit.  For  example,  Mr.  D'Acosta  recalls  the 
state  of  this  country  after  the  close  of  the  Napoleonic  wars,  when 
what  our  diplomatists  brought  back  in  the  end  of  1815  was  not 
great  masses  of  plunder,  of  territories  added  to  the  empire,  of 
indemnities  collected,  but  simply  an  enormous  debt  and  the 
security  of  autocrats  for  a  30  years'  peace.  As  Napoleon  said, 
"  You  British  gave  up  everything  and  gained  nothing."  The 
troubles  that  followed  the  peace  might  have  been  dwelt  upon 
with  more  detail  than  Mr.  D'Acosta  enters  into,  but  he  says 
enough  to  warn  us  that  we  shall  have  to  study  the  position 
most  carefully  and  with  an  unprejudiced  intelligence  which  was 
not  available  a  hundred  years  ago.  The  peace  is  not  going  to 
be  a  time  of  ease,  a  sort  of  outer  court  of  Heaven,  when  this 
war  ends ;  very  much  the  reverse,  and  the  sooner  we  look  facts 
in  the  face  and  try  to  shed  a  little  of  our  selfishness,  the 
better.  Into  Mr.  D'Acosta's  well-informed  and  sensible  dis- 
cussion of  our  monetary  system  and  the  nature  of  credit,  of 
our  banking  and  other  credit  institutions,  and  so  forth  we  have 
not  space  to  go.  It  is  enough  for  our  purpose  to  recommend 
this  little  work  as  one  pjainly  and  modestly  written  by  a 
thoughtful  student  of  practjcal  economics.  Not  the  least  valuable 
part  of  the  book  is  Mr.  D'Acosta's  warning  as  to  the  diminished 
purchasing  power  of  the'belligerents  after  the  war  through  the 
depreciation  of  the  currency  and  through  their  universal 
poverty. 

The  100  Besl  Investments.     British,  Foreign  and  Colonial  Cor- 
poration, 57,  Bishopsgate,  E.C.     Price  4d. 

This  company  has  just  published  another  supplement  of  "  The 
iix)  Best  Investments,"  bringing  the  book  up  to  date.  Besides 
the  usual  features  the  work  contains  a  special  article  by  Mr. 
Emil  Davies,  entitled  "  Investment  Under  Present  Conditions," 
which  deals  with  the  present  position  and  outlook  of  affairs  from 
the  point  of  view  of  the  investor.  There  are  also  useful  tables 
of  statistics  which  are  valuable  if  used  discreetly. 


FINANCIAL  ADVICE. 


You  can  always  obtain  gratis  the 
best  advice  regarding  your  stocks 
and  shares  through  the  medium  of 
the  v4nswers  to  Correspondents 
column  of 


which  has  the  largest  circulation 
of  any  financial  daily  newspaper 
in  the  world. 

You  should  remember  that  The 
Financial  Times  criticises  "  without 
fear  or  favour"  every  prospectus 
that  is  issued,  whether  advertised 
in  its  columns  or  not. 


72,  COLEMAN  STREET,  LONDON,  B.C. 


Telephone : 
3436  London  Wall 


Telegrams : 
'Finantimo,  London. 


446 


Zhc  Jnveetors'  IRevtew. 


MaV:4^   1 918. 


COMPANY  MEETINGS. 


BALDWINS. 

THE  FUSION  WITH  THE  BRYMBO  STEEI,  COMPANY. 

The  adjourned  annual  meeting  of  lialdwins,  Limited,  was 
held  at  Birmingham  on  Thursday. 

Colonel  John  Kaper  Wright  (the  chiurman)  presided,  aaidr  in 
moving  the  adoption  of  the  report  and  balance-.sheet,  stated  that 
from  the  profit  and  los»i  account  the  bal;mcc  brought  down  was 
;£2io,S54,  after  making  the  u.9ual  and  proper  provisions  and  also 
reserves  for  excess  profits  duty  and  munitions  levy.  After  pay- 
ing lai  per  cent,  dividend,  free  of  iincome-<ax,  there  was 
;^i 56,968  to  carry  to  the  credit  of  next  year's  accounts.  They 
had  approrpriatcd  ;f  75,000  to  reserves,  allocating  ;f  50,000  to  the 
general  reserve,  bringing  that  up  to  ^^450,000,  and  placing 
;^25,ooo  to  investment  reserve.  The  unexpected  and  unexampled 
needs  of  the  great  wa.r,  he  continued,  had  fallen  heavily  on  the 
ccmpany,  and  the  prt-ssure  for  their  j.-'roducts  had  been  such 
that  they  stood  committed  to  great  extensions  and  development. 

Capitalising  the  Reserve. 
The  directors  had  decided  to  ask  the  shareholders'  consent  to 
capitalising  part  of  the  reserve  of  ;f45o,ooo  in  the  proportion 
of  one  ordinary  »hare  for  every  four  ordinary  shares  held  by  • 
the  ordinary  shareiholders.  The  shares  issned  were  1,240,657, 
and  this  meant  a  distribution  of  310,165  ordinary  shares  credited 
as  fully  paid,  making  the  ordinary  capital  then  ^^i, 550,822.  It 
would  be  remembered  that  the  company,  in  conjunction  with 
the  lirymbo  Steel  Company,  had  taken  a  very  large  tract  of 
iron  ore-bearing  land  in  Oxfordshire,  an  enterprise  in  relation 
to  which  the  directors  had  high  expectations.  This  and  the 
other  associations  with  this  company  led  the  directors  to  con- 
sider the  question  of  a  fusion  of  interests  with  them,  with  the 
result  that  it  was  arra.ngcd  that  Baldwins  should  acquire  the 
controlling  interest  in  the  lirymbo  Company,  and  that  upon  a 
transfer  of  not  less  than  eight-tenths  of  the  ordinary  shares  of 
the  Brymbo  Company,  such  s'hares  should  be  acquired  by  Bald- 
wins at  the  rate  of  20  fully-paid  Baldwins  shares  of  £t  each,  for 
each  ;f  10  Brymbo  share  transferred.  The  Brymbo  ordinary  shares 
being  10,000  shares  of  ^10  each  meant  that  if  the  whole  of 
these  shares  were  transferred  it  would  increase  Baldwins'  ordi- 
nary share  capital  by  ^^200, 000.  He  believed  nearly  all  of 
the  shares  would  be  purchased.  In  addition  to  this  price,  it 
was  agreed  that  they  should  give  the  shareholders  of  the  Brymbo 
Company,  in  respect  of  the  shares  in  Baldwins  acquired  by 
them,  a  right  to  subscribe  in  the  proportion  of  three  to  four 
for  any  new  issue  that  might  be  made  at  the  price  of  issue, 
making  a  maximum  aanount  of  150,000  shares. 

Sir  H.  B.  Roiiektson. 
It  had  lalso  been  agreed  that  as  soon  as  the  transaction  was 
carried  out  Sir  H.  B.  Robertson,  the  chairman  of  the  Brymbo 
Company,  should  join  Baldwin's  board.  With  regard  to,  ways 
and  means,  the  ordinary  share  capital,  after  the  bonus  issue, 
would  Ibe  ^1,550,822.  The  directors  proposed  to  issue  to  the 
ojdinary  shareholders  a  like  amount  on  the  basis  of  share  for 
share,  amd  this,  with  the  150,000  shares  offered  to  the  Brymbo 
shareholders,  if  entirely  taken  up,  meant  that  1,700,822  would 
be  issued.,  ma,king  the  ordinary  capital,  with  the  addition  of  the 
200,000  .shares  to  be  esxchamged  for  the  Brymbo  Company's 
shares,  a  total  ordinary  share  capital  of  ^3,451,644,  which, 
though  a  large  capital,  was  one  that  wheai  the  works  were  com- 
pleted they  were  confident  could  be  fairly  met  in  regard  to 
satisfactory  dividend.  It  w.is  proposed  to  offer  the  additional 
issue  to  the  ordinary  shareholders  of  the  two  companies  at  the 
price  of  25s.  per  share.  This  would  give  the  ;if2, 126,027  which 
they  believed  would  prcn-ide  the  requirements  to  meet  what 
they  had  undertaken.  Treasury  sanction  had  been  obUiined  to 
the  proposed  issue  of  shares.  To  enable  these  proposals  to  be 
cirried  out  the  caipital  must  be  increased,,  and  the  directors 
further  proposed  that  the  authoris>c-d  ordinary  share  capital 
should  be  raised  from  ^^i, 250,000  to  ^^4, 000,000. 

Mr.  S.  L.  Dove  secomded  the  motion,  and  it  was  unanimously 
carried. 

The  Chairman  then  said  the  directors  felt  assured  the  manu- 
facture of  steel  in  the  many  branches  of  industry  covered  by  the 
company  would  not  only  be  a  valuable  asset  to  the  country  as 
a  whole,  but  would  be  one  of  its  most  prosperous  industries 
after  the  disastrous  war  had  come  to  what  they  confidently  felt 
would  be  a  victorious  end. 

It  was  decided  to  increase  the  remuneration  of  the  directors 
from  ;£joo  to  ;f 500  a  year,  with  a  further  payment  to  the  chair- 
man as  provided  by  Article  Sg. 

An  extraordinary  meeting  was  subsf-qnently  held,  at  which 
the  alteration  was  sa,nctioned  in  the  articles  of  association  for 
the  capitalisation  of  the  amount  standing  to  the  credit  of  profit 
and  loss  account  on  the  reserve  fund.  The  Chairman  explained 
that  the  effect  of  this  step  was  not  to  prejudice  in  any  way  the 
position  of  third  parties  in  relation  to  the  company.  Indeed, 
by  thus  converting  undistributed  profits  and  reserves' into  capital 
it  might  be  said  to  improve  their  position,  as  the  companv's 
asset?  were  not  reduced  and  funds  so  capitalised  could  not  be 
divided  in  dividend. 


THE  UNION   BANK  OF  SCOTLAND,  LTD. 

The  annual  meeting  of  shareholders  was  held  on  Wednesday, 
May  1,  within  the  bank  premises  in  Ingram  Street,  Glasgow. 
The  Right  Honble.  Lord  Glenconner  of  Clen^  chairman  of  the 
bank,  in  the  chair. 

The  Chairman  said  that  the  banks  meeting  agairt  (00k  place 
under  the  strain  and  anxiety  of  war,  but  with  an  unimpaired 
belief  in  the  justice  of  our  cause  and  a  confident  expectation 
that  a  victorious  peace  will  prove  a  lasting  memorial  to  those 
who  have  suffered.  In  the  present  circumstances  criticism  or 
comment  of  a  general  character  seemed  out  of  place,  and  he 
would  therefore  strictly  limit  the  scope  of  his  remarks. 

Twelve  months  ago  the  directors  submitted  to  the  shar<- 
holders  their  recommendations  for  modernising  the  old  co- 
partnery  of  the  bank.  These  recommendations  had  taken  the 
form  of  a  immorandmn  and  articles  of  association.  The  share- 
holders unanimously  adopted  them,  and  later  in  the  year  the 
new  consitilntion  had  bf.'en  approved  by  the  Court  of  Session. 
The  new  regulations  had  been  in  force  for  some  months,  and 
were  found  to  be  satisfactory  in  all  respects. 

Shortly  before  last  annual  meeting  the  C.overnmem  had 
floated  the  5  (per  cent.  War  I^an,  and  the  financial  disturbance 
following  upon  that  issue  was  reflected  in  the  considerable 
diminution  of  the  bank's  deposits,  which  a  year  ago  only 
amounted  to  some  17  millions  sternng.  In  the  past  twelve 
months  no  large  funding  operation  had  taken  place,  with  the 
result  that  the  deposit  figures  showed  a  remarkable  increase. 
Another  item  in  the  balance-sheet  reflecting  the  foregoing  con- 
ditions was  that  of  loans  foi-  short  feriods  on  stocks  and  other 
securities.  I.ast  year  it  amounted  to  ^5, 152,000,  while  to-day 
it  had  shrunk  to  ;£2, 573,000.  The  difference  was  pnncipallv 
brought  a;bout  by  clients  repaying  advances  which  the  bank 
made  to  enable  them  to  take  up  War  Loan. 

The  shareholders  might  be  interested  to  hear  some  details  of 
what  the  staff  of  the  bank  had  done  in  his  Majesty's  Forces. 

ITp  to  date,  486  officials  of  the  bank  had  joined  his  Majesty'.-. 
Forces,  of  whom  95  IkmI  received  commissions.  It  was  re- 
gretted that  49  had  fallen  in  action,  while  five  had  been  taken 
prisoners  and  one  was  interned  in  Holland,  Fifty-six  had  been 
wounded — in  all,  11 1  casualti<s.  In  addition  to  the  foregoing 
figures,  eight  members  of  the  staff  were  reported  as  missing 
during  the  recent  fighting  in  France. 

The  following  distinctions  had  also  been  awarded  ; — 

One  Distinguished  Service  Order,  » 

Two  Military  Crosses, 
Two  Distinguished    Conduct   Medals, 
Seven  Milit.ary   Medals,   and 
Six  Mentions  in  Despatches. 
Tlie    clerical   conduct   of   the  bank   was   passing  to    a     still 
greater  extent  into  the  hands  of  women.     There  were  now  320 
in  the  service,  and,  as  the  Military  Authorities  had  asked  that 
still  further  efforts  be  made  to   release  men,  no  doubt  they  had 
not  yet  reached  their  maximum  strength.     At  the  same  time  the 
directors  recognised  that  the  limit  to  which  dilution  can  go  had 
almost   been  reached.     The   extremely  satisfactory  manner    in 
which  both  the  perm.nnent  and  the  temporary  staff  had   earned 
out  their   duties   to   the   public   arid    the  bank    had    again   been 
recognised  by  the  directors,  who  had  paid  a  generous  bonus  to 
all  officials   in   the  service  of  the  bank  with   salaries  of  £s°^  ■■ 
year  and  under.     In  the  very   trying  condiitions    in   which  we 
were  living,  this  consideration  had  been  greatly  appreciated  by 
the  officials  concerned. 

Mr.  Seton  Thomson,  who  had  been  a  director  since  1879.  had 
resigned  his  seat  on  the  board  a  few  months  ago,  to  the  great 
regret  of  hits  co-directors.  For  nearly  40  years  Mr.  Thomson 
had  given  the  closest  consideration  to  the  affairs  of  the  bank, 
and  the  board  felt  that  the  thanks  of  the  shareholders  were  due 
to  him  for  his  valuable  services  during  that  long  period.  Mr 
Thomson  would  continue  his  connection  with  the  bank  in  th? 
honorary  capacity  of  an  extraordinary  director. 

The  directors  had  to  record  with  deep  regret  the  death  of 
an  extraordinary  director  in  the  person  of  Mr.  Robert  Blyth. 
Mr.  Blyth  maintained  his  connection  with  the  bank  in  that 
capacity  since  1910,  when  he  retired  from  the  office  of  general 
manager,  which  position  he  had  held  for  the  previous  15  j-ears. 
Mr.  Herbert  W.  Haldano,  one  of  the  auditors,  having  accepted 
a  seat  on  the  board  of  another  bank,  had  resigned  office  last 
autumn.  To  fill  the  vacancy  thus  cr<ated  the  directors  had 
appointed  Mr.  Francis  More,  chartered  accountant,  Edinburgh. 
It  would  be  observed  from  the  report  that  the  directors  had 
replaced  /ioo,ooo  to  rest  account,  raising  the  reserve  to 
;f9oo,ooo.  The  bo;i.rd  were  glad  to  feel  justified  in  making  that 
allocation  from  the  profits  of  the  year,  in  the  knowledge  that 
the  investments  of  the  bank  had_  been  written  down  to  the  prices 
of  the  day. 

On  the  motion  of  Mr.  Archibald  R.  C.  Pitman,  W.S.,  Edin- 
burgh, seconded  by  Right  Honble.  J.  Parker  Smith,  of  Jordan- 
hill,  and  supported  by  the  chairman,  the  anmial  report  was 
adopted,  and  a  dividend  declan'd  at  tlie  rate  of  15  per  cent,  per 
annum,  less  income-tax,  payable  in  equal  proportions  on  May  10 
and  November  9  next. 

Mr.  David  Ander.son,  J. P.,  14,  St.  Vincent  Place,  proposed, 
and  Mr.  Alexander  Jeans,  solicitor,  Partick,  seconded,  the  re- 
election of  Lord  Glenconner  as  chairman  and  Mr.  John  Young 
Buchamui,  F.R.S.,  as  deputy  chairman  of  the  bank,  which  was 
cordially  approved. 

On  the  motion  of  Mr.  M.  Douglas  Anderson,  yarn  merchant, 


May  4,  191 8. 


Hbe  Jnvestors'  IReview, 


w 


seconded  by  Mr.  Wdlliara  Cassels,  57,  Fotheringay  Uoad, 
Pollokshields,  Mr.  Peter  Rintoul,  Right  Hon.  J.  Parker  Smith, 
and  Mr.    Robert  Clark  were  re-elected  ordinary  directors. 

On  the  motion  of  Mr.  Charles  KusstJl,  Lochbrae,  Bearsden, 
seconded  by  Mr.  David  J.  Knox,  J. P.,  19,  Renfield  Sitreet,  Mr. 
Charles  D.  Gairdner,  C.A.,  Glasgow,  and  Mr.  Francis  More, 
C.A.,  Kdiniburgh,  were  appoint<xl  auditors. 

On  the  motion  of  Mr.  William  Sinclair,  F.F.S.,  95,  Hath 
Street,  a  vote  of  thanks  was  accorded  to  the  chairman. 


GOLDSMITHS    AND    SILVERSMITHS    CO. 

The  19th  ordinary  general  meeting  of  the  Goldsmiths  and 
Silversmiths  Co.,  Ltd.,  was  held  on  Tuesday  at  the  company's 
premises,  112,  Regent  Street,  Mr.  A.  T.  Isaac,  the  chairman  of 
the   company,   presiding. 

The  Secretary,  Mr.  James  W.  Rice,  having  read  Ihe  notice 
convening   the  nleeting  and  the   report  o£   the,  auditors, 

The   Chairman    said    that   the    directors,    in    addition   to   the 
payment  of  5   per   cent,  on  the  preference   shares,   were  recom- 
mending a  dividend  at  the  rate  of  ■;%  per  cent,  on  the  ordinary 
shares,   while  carrying  forward  ^'23,025  to   the  new  profit  and 
loss  account.     That  dividend,  he  was  sure,  would  be  as  welcome 
to  the  shareholders  as  it  was   satisfactory  to  the  directors.     It 
was  at  the  rate  of  the  last  dividend  paid  by  the  company  before 
the  outbreak  of  war,  and  should  be  considered  creditable  both 
to  those  who  had   been    responsible  for   the  management  of  the 
affairs  of  the  company,  and  to  the  employees,   who  had  one  and 
all  worked  with  loyalty  and  zeal.      In   recognition  of  that  fact 
the  board  had  decided,   after  great  deliberation,  that  the  com- 
pany should  in  future  bear  all  charges  of  income-tax— of  officials 
and  employees.     They  hoped   that  by  that  means  the   personnel 
of  the  staff  would   be  drawn   closer  than  ever  to   the  company, 
and    that    the   employees   would    feel    that    their    interests    were 
carefully  and  sympathetically  considered.     The  period  covered 
by  the  arxounts  had  been  one  of  great  stress  and  strain.     They 
had,   indeed,  had   many  difficulties  to  contend  with,   of   which 
he  would  mention  the  'most  important.     There  had   been   great 
difficulty  in  manufacture  owing  to  the  demands  of  the  Govern- 
ment,   and   they  had   had   very   frequently  to  ask    for  the  kind 
indulgence  of  customers  in  cases  of  delay.     They   could   grate- 
fully  say  that  that   had   always   been   forthcoming.      They  still 
.suffered    from    a    greatly    depleted     staff,    and    as    their    policy 
remained  to  fulfil  all  the  demands  of  their  customers,   even  to 
the  point  of  undertaking  repairs  of  jewellery,   watches,  &c.,   it 
could   be   readily   understood    that  the   burden   placed    upon  the 
staff  had  been  heavy.     There  were  very  few  outstanding  points 
to  be  noticed  in  the  year's  trading.     It  might  be  said  that  the 
increase  was  spread  over  all  the   departments  of  the  business, 
although,    perhaps,    they   could    single    out    the    antique    silver 
department.     Of  the  public  presentations  of  the  year — ^and   they 
had   not   been  many— the  company  had  certainly  secured   their 
•share.     They   had  had  a  good    many  orders  from  neutral   and 
Allied  countries,  and  in  some  cases  cheques  had  been  forwarded 
and   the  .selection  of  the  goods  left   entirely  to  their  discretion. 
;He  mentioned  that  as  it  seemed  to  shew  that  their  reputation 
.tor  fair  dealing  was  always  extending  its  bounds.     They  might 
hope  after   the  war,  when  they  were  not  hampered  by  transport 
difficulties,    notably    to    increase   their    foreign    trade.       Share- 
holders would  be  pleased  to  find  that  the  company  had  not  been 
backward  in  doing  its  part  to  assist  the  efforts  of  the  Red  Cross. 
Their  Mr.  Hodges,  who  had  been  chiefly  concerned,  had  earned 
warm  appreciation  as  an  antique  silver  expert.     Mr.  Ashwin,  too, 
one  of  the  directors,  had  been  very  active  in  assisting  to  organise 
the   Red   Cross   pearl   necklace   .scheme.      Their    gro.ss   profit   on 
trading  was  ^29,047  up.     The  nett  profit  was  ^'40,681,  as  against 
^25,317  last  year,  showing  an  increase  of  £is,363-     He  thought 
the.  shareholders  would   agree  that  they  had"  good    grounds  to 
congratulate  themselves  on  the  state  of  their  enterprise.     They 
would  doubtless  have  many  difficulties  still  to  contend  with,  but 
he  had  every  hope  that  they  would  continue  to  be  worthy  of  the 
confidence  of  the  shareholders  and  the  patronage   of  their  cus- 
tomers both  at  home  and  abroad. 

Mr.  E.  G.  Ashwin,  the  deputy-chairman,  seconded  the  motion, 
and  after  some  congratulatory  remarks  it  was  carried  unani- 
mousily. 


GENERAL    INVESTORS    AND    TRUSTEES. 

The  eleventh  annual  general  meeting  of  the  stockholders  of 
the  General  Investors  and  Trustees,  Ltd.,  was  held  on  Tuesday 
at  Winchester  House,  Old  Broad  Street,  under  the  presidency 
■ot  Sir  J,  S.  Harmood-Banner,  M.P.,  the  chairman  of  the  com- 
pany. 

The  Manager  and  Secretary  (Mr.  James  Davenport)  read  the 
riotice  convening  the  meeting  and  the  auditors'  report. 

The  Chairman,  in  dealing  with  the  profit  and  loss  account, 
.pointed  out  that  the  dividends,  interest,  commissions,  &c.,  re- 
ceived amounted  to  ;/^4i,2i6,  against  ^40,272,  an  increase  of 
about  1,000,  and  as  the  expenses  were  approximately  ;<^5oo  less 
.than  last  year,  they  had  a  balance  of  net  revenue  available  of 
.if 24.973.  or  an  increase  of,  say,  .^1,500.  The  dividend  on  the 
preference  stock  had  been  paid,  and  the  board  now  proposed  a 
dividend  en  the  ordinary  stock  at  the  same  rate  as  last  year — 
namely,  5  per  cent.  By  the  incidence  of  income-tax,  these  divi- 
dends required  a  net  amount  somewhat  less  than  last  year,  and 
the  final  result  was  that,  after  making  these  distributions,  they 
had  the  substantial  sum  of  ;fi8,8i4  to  carry  forward,  against 
,.£15,216  brought   into    the    accounts.      Their     articles     did     not 


permit  of  the  directors  of  their  own  volition  carrying  forward 
more  than  ^5,000,  but  he  felt  sure  the  stwkholders  would  admit 
the  wisdom  of  the  course  suggested.  If  they  cast  a  fleeting 
glance  backwards  over  the  four  years  which  had  now  practi;a!ly 
elapsed  since  the  Huns  made  their  f.ateful  decision  to  strive  for 
the  domination  of  the  world,  and  if  they  remembered  how  the 
whole  financial  and  industrial  foundations  had  been  shaken,  he 
thought  they  had  .some  reason  to  congratulate  themselves  on 
their  record.  It  was  true  that  they  had  reduced  the  steady  6 
per  cent,  which  for  some  years  they  paid  on  their  ordinary  stock 
to  5  per  cent.,  but  they  had  been  able  comfortably  to  maintain 
that  distribution,  and,  apart  from  unforeseen  contingencies,  he 
thought  he  could  promise  them  a  like  distribution  for  this  jear. 
In  fact,  they  were  hoping  that  during  the  year  they  might  be 
sufficiently  confident  of  the  progress  of  results  to  revert  to  their 
pre-war  practice,  and  make  an  interim  distribution  on  their 
ordinary  stock  about  October.  There  was  unquestionably  some 
depreciation  in  the  company's  investments,  but  against  that, 
whatever  it  might  tiltimately  prove  to  be,  they  had  in  their 
reserve  fund  and  in  the  amount  carried  forward  an  available 
sum  of  practically  £7>i,ooo,  while,  in  addition,  they  had  this 
year,  from  profits  derived  from  the  sale  of  securities,  written 
down  their  investments  by  more  than  /'2o,ooo.  In  the  previous  year 
they  were  able  to  apply  ^4,000  to  this  object,  so  he  thought  he 
was  justified  in  saying  that  they  had  been  able  to  make  svbstan- 
tial  progress  towards  meeting  any  depreciation  which  war  con- 
ditions had  rendered  inevitable.  The  year  under  1  eview  had 
been  an  exceedingly  strenuous  one,  both  for  the  board  and'  the 
officials.  One  matter  which  had  given  them  consider.vble  work 
had  been  the  reorganisation  of  Spiers  and  Pond.  This  com- 
pany had  a  fairly  large  holding  of  Spiers  and  Bond's  deben- 
tures, their  total  investments  standing  in  their  books  at  'he  cost 
of  just  under  ;£i3,ooo.  Then,  again,  they  had  spent  a  great 
deal  of  time  in  investigating  a  large  silk-manufacturing  tnter- 
prise — Josiah  Smales  and  Sons — in  the  North  of  England.  1  hey 
had  as.sociated  with  them  in  this  business  powerful  financial 
friends,  and,  after  careful  investigation,  they  had  recently  de- 
cided to  declare  an  option  which  they  and  their  friends  obtained 
with  the  sanction  of  the  Court  of  Chancery,  and  to  .-.cquire  the 
business.  In  conclusion,  he  said  he  wished  to  acknowledge,  on 
behalf  of  himself  and  V,;.-  co-directors,  the  able  services  of  their 
managing  director  and  of  their  manager. 

Mr.    John   Smith,   C.B.,   seconded  the   resolution,   which   was 
unanimously  carried. 

What    Balance    Sheets    Tell. 

L.\  Gl;air.\  .\Nn  Caracas  Railway  Co.,  Ltd. — For  the  past  year 
gross  receipts  amounted  to  ;,f87,ioo,  a  decrease  of  ^^5, 900,  almost 
entirely  on  goods  traflSc.  This  was  largely  due  to  a  better  local 
maize  crop,  which  made  it  unnecessary  to  bring  supplies  from 
other  districts,  and  there  was  also  a  considerable  reduction  in 
flour  imports,  partly  owing  to  the  difficulties  caused  by  the 
war.  Working  expenses  amounted  to  ^'41,400,  an  increase  of 
,^i,i.xi,  but  the  fuel  bill  alone  was  £3,120  higher,  so  that  econo- 
mies were  effected  in  other  directions.  Including  _£i,4oo, 
against  ^35,  brought  in,  the  nett  revenue  was  ;£ 52,320,  or  ^4,000 
less,  but  the  dividend  of  6  per  cent.,  tax  free,  is  repeated,  ;£2,ooo 
is  placed  to  reserve  for  depreciation  of  investments,  and  ;£3,2oo 
is  carried  forward.  T^ast  year  ^5,000  was  placed  to  general 
reserve,  and  ^3,500  to  investment  reserve.  For  the  first  quarter 
-nf  the  current  "year  gross  receipts  show  a  decease  of  £8,250  at 
£19,250,  owing  to  the  lack  of  shipping  facilities,  but  it  is  stated 
that  working  expenses. have  been' decidedly  reduced. 

Wm.  Dixon,  Ltd. — In  the  year  to  February,  1917,  the  nett 
profits  of  this  large  iron  and  coal  firm  dropped  over  j£ioo,ooo, 
after  providing  for  war  taxation,  and  since  then  it  has  just  been 
marking  time.  Changes  in  the  figures  are  so  trifling  that  they 
need  not  be  specified.  Nett  profits  amounted  to  £'79,300,  and 
after  setting  aside  the  usual  £15,000  for  debenture  stock  redemp- 
tion, the  dividend  of  yi  per  cent,  is  repeated,  and  £35,940  is 
carried  forward.  The  iron  works  continue  under  Government 
control,  and  the  collieries  have  also  been  controlled  since 
March  I  last.  It  is  stated  that  the  accounts  may  be  subject  to 
some  modification  later,  dependent  on  the  adjustment  of  claims 
against  the  Coal  Controller  and  other  Government  depanments. 
C0NS0LID.4TED  TRUST,  LTD. — In  the  year  to  April  15  revenue 
amounted  to  £56,400,  a  decrease  of  £3,500,  no  doubt  owing  to 
the  increased  income-tax.  However,  £6,200  more  was  brought 
in,  and  after  again  paying  12^  per  cent,  on  the  deferred  stock, 
the  balance  forward  is  increased  by  £2,100  to  £8,750.  During 
the  year  the  nett  amount  realised  from  the  sale  of  securities 
was  £8,400,  as  compared  with  £26,200,  and  this  has  been 
applied  towards  reducing  the  book  value  of  certain  investments. 
Changes   in  the  balance-sheet  are  quite   unimportant. 

KiMBERLEY  WATER  WORKS  CO.,  LTD.— Gross  revenue  in  1917 
amounted  to  £48,730,  an  increase  of  /3,7oo,  and  the  nett  income 
was  ;£25,24o,  or  ;£i,6oo  more.  This  allows  of  the  payment  of  the 
usual  dividend  of  5  per  cent.,  half  of  which  has  been  paid  as 
interim,  absorbing  £15.750,  and  the  balance  is  devoted  to  de- 
pieciation,  together  with  £1.000  placed  to  investment  fluctuation 
ifund.  Although  the  adverse  influence  of  the  war  continues  to  be 
felt,  there  was  a  substantial  increase  in  the  consumption  of  water 
for  mining  purposes,  while  there  was  a  slight  falling  off  in 
domestic  requirements,  the  total  being  ;, 300, 000  gallons  larger  at 
202,506.000  gallons.  The  rainfall  for  the  year  was  15.20  inches, 
as  against  q.96  inches  in  1916.  Fears  that  the  demand  for  dia- 
monds would  fall  off  materially  whe.n  the  United  States  came 
into  the  war  have  not  so  far  been  justified,  and  the  company 
has  had  the  most  prosperous  year  experienced  for  some  time. 


448 


tTbe  Jnvestots*  1kcvic\0. 


May 


1918. 


INDIAN  RAILWAYS. 


UONTHLY    STATEMENTS. 


SAUt. 

OROS9 

TRAFFIC  FO«  WKKX. 

OKOSS  THAFFIC  TO  DATK. 

In.  or  dec. 

s 

In.  or  dec. 

{   eodiog 

fUnonnt       on  last 
year. 

Amount 

on  last 

....  ^. 

R*. 

Rs. 

^s. 

Ainm  BanKal 

Mar.     2 

l,64,>43 

+      36.33> 

t 

30.97.613 

+    3. '6.300 

Birsl 

Fet.   23 

10,200 

—       6,400 

t 

7,78,700 

—    2,?8,700 

Bengal  4  N.-W.     .. 

4.57,350 

—     12.976 

t 

84,10,294 

-    4,80,584 

Bengal  Nagpar 

Mar.    9 

12,93,000 

+    1.02,000 

t 

5,16.88,138 

+  42,45.529 

Bombay,  Barod*  .. 

April  30 

18,20,000 

+  2,41.000 

I 

30.tl8,000 

+     5,78,000 

B  rma          ,.        .. 

Mar.     2 

5,53.453 

-      7,s«3 

I 

2.CO,83,(23 

—       61,708 

Delhi  Umballa       .. 

April  20 

91,300 

+      12.498 

{ 

2.52,983 

+        32.465 

East  Indian.. 

,,      20 

24  76,000 

—       1,000 

68,52,000 

+        58,000 

Gt.  Indian  Penin.  .. 

,,      20 
Feb.    23 

24,76,600 

+     77.400 

* 

65,14,000 

—    2,41.900 

Luoknow-Bareilljr.. 

63,051 

h-     6.299 

: 

cio,67,240 

+        92,789 

Madras      and       S, 

Mabralia  .. 

Mar.     0 

11,00,000 

-      «,6o4 

t 

J.37.36.398 

+  12,49.258 

NUam'sGd.  (Broad) 

Feb.     9 

1,41,527 

+            '49 

t 

25.05.155 

+        64.334 

,,        „     (Metre) 
Rohilkund  and 

>i       9 

1,23,720 

+      11.775 

t 

I5,5J.324 

+        38,895 

Kumaon  .. 

.,     »3 

5>.638 

+       9.87a 

I 

9.08,073 

+     1,13.639 

Sontb  Indian 

Mar.    9 

6,42,064 

—     29.796 

t 

1.47,83.3" 

+    9,54,861 

t  April  I.  t  October  i, 

TRAMWAY  AND  OMNIBUS.— HOME. 


£ 

£ 

£ 

£ 

Dublin  United       .. 

Apr.  65 

7,8i7 

+    i,9M 

} 

99.454 

+    19.435 

Hastings  and  Dlst.. 
Isle  of  Tbanet 

..    22 

1,017 

+         43 

16,614 

+      2,080 

,.    20 

177 

—        76 

* 

5.240 

—     1,969 

Lancisbire  United.. 

,.    17 

2,865 

+       997 

t 

40,363 

+     12.143 

Provincial    . . 

„    13 
..    28 

2,638 

+       355 

* 

67.816 

+    12,493 

Yorks.  (Wsi.  Rdng.) 

2,ro4 

+       728 

t 

40,745 

+      9.39s 

•  From  Oct.  i.  t  From  Jan.  I. 

TRAMWAY  AND  OMNIBUS.— FORbIGN   AND  COLONIAL. 


Alabama  Power    , . 
Anglo-Argentine   . . 
Auckland  Electric. . 
Brasilian  Traction  . 
Brisbane  Eleo.  Inv. 
British  Columbia  . 
B.A.  Lacroze 
Burmah  Electric  . 
Calcutta 
Carthagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &T.     .. 
Hongkong   . .        . 
La  Plata 

Lima 

Madras  Electric   . 

Manila  Electric.... 

Mexico 

Rangoon 

Singapore  Electric 

Toronto 

United  of  Monte  V 

Vera  Crui   . . 

Winnipeg    . . 


Mar.  S 

Apr,  22 

..    <2 

Mar.  S 


Apr.  27 


Feb. 
Mar. 


Apr. 

15c 

Aug. 

8 

Nov. 

f 

Mar. 

« 

Feb. 

23 

Mar. 

i 

Fek 

5 

Mar. 

£ 

126,829 
59.417 
23,209 
M3, 925,000 
35.530 
1129,658 
42,647 

Rs.27,9o6 
Rs.72,339 

4,2CO 
12,972 

$[2,9go 

5,347 

42,106 

Rs.  40,805 

65,467 

1215,256 

5.955 

1 13.670 

•531.725 

36.659 

42,200 

♦71,403 


£ 

+  20,143 
+  5.792 
+       2.031 

—  M  226,000 
+,  2,190 
+  $29,210 
+  1,310 
+  Rs.  774 
+  Rs.7,305 

—  166 

+  1,076 
+  701 
+  819 
+  4,520 
+  Rs.  2,097 
+    4.667 

—  $108,669 

—  271 
+  »707 
+  $56,119 
+  4,680 

—  6,300 

—  »7.i07 


£ 
126,829 
879.953 
224.466 

M111S6C00 
102,039 

ti.032,557 
346,421 
185,428 

Rsi077,322 

17.558 

147.938 

$141,396 

14,803 

'27.555 

Rs. 277,813 

547.492 

$3,193,106 

16,978 

$104,652 

$1,442,834 

172.333 

84,200 

$150,195 


£ 

<-  20,143 
+      61,742 

*■         9,8So 

—  M852,ooo 
+  5.879 
+  $160,244 
+  6g 
+  Rs.  991 
+  Rs.72,i2i 

+         3,032 

+  435 

+  $2,377 
+  1,867 

+  18,900 
+  Rs.35,666 
^-       70,625 

—  $197,227 
+  l.5'4 

—  $1,821 
♦■  $55,211 
+        '4.94' 

—  19.300 

—  $16,837 


6a8d«f8.       *  From  Jan.  I.      9  Nett.       a  From  luly  i.      c  Two  weeks, 
FOREIGN   RAILWAYS. 


£ 

£ 

£      1 

£ 

AlcoyandGandla.. 
Antofagasla    (Chili) 

Apl.    20 

Ps.     8,000 

— 

2,500 

Ps.  145,900 

-Ps.19,970 

..     28 

5'. 370 

+ 

4,065 

710,550 

+ 

85.380 

Arauco 

Mar. 

'2,500 

•t- 

1,500 

39.000 

+ 

6,000 

Argentine  N.E.      . . 

,tfa^.  '' 

10,300 

+ 

400 

362,900 

+ 

65,398 

Bilbao  R,  and  Canta 

4.486 

+ 

1,341 

12,548 

+ 

907 

Bolivar 

* 

11,000 

— 

6,101 

100,775 

+ 

13,668 

Brazil 

Jan.      • 

M  5, 202.000 

+  M 1070499 

M5, 202,000 

4-  Ml 070499 

Brazil  Gt.  Southern 

Deo.     • 

Mls.66,912 

•^ 

M22,712 

M  538,439 

+ 

M74.769 

B.  Ayres  &  Pacific 

Xr.  =' 

96,000 

+ 

10,000 

3,995,000 

+ 

289,000 

Do.  Central     .. 

38,675 

+ 

14,034 

252,258 

+ 

35.451 

Do.  Gt.South'n 

Apl.    28 

45,000 

— 

62,000 

4,659,705 

204.549 

Do.       Western 

„       28 

81,000 

+ 

37,000 

2,197.000 

4- 

74.000 

Central  Argentine.. 

..       27 

175.000 

+ 

82,400 

4,809,200 

+ 

334  500 

C.Ur'g'ayofMte  V. 
Do.  East'nEx. 

..       27 

20.292 

+ 

6,214 

793.5'7 

+ 

226,343 

..        27 

7.803 

+ 

5'5 

219,160 

+ 

8.273 

Do.North'nEx. 

»       27 

4.033 

1- 

972 

140.651 

+ 

35.874 

Do.  Wesfn  Ex. 

,.       27 

2,28; 

+ 

79' 

96,609 

+ 

'7.424 

Cordoba  Central  . . 

..        20 

41,000 

4- 

11.540 

1,275,850 

+ 

47.330 

Costa  Rica  . 

Mar.   16 

3.690 

— 

601 

104,620 

— . 

89.971 

Cuban  Central 

Apl.    27 
Mar.     ♦ 

31.601 

+ 

2,556 

877.559 

4- 

164,224 

Dorada  Extension. . 

8,200 

— 

400 

23.900 

2,700 

Egyptian  Delta     .. 

Feb.   28 

6,519 

+ 

1.253 

264,360 

+ 

62,069 

Entre  Rios  . . 

Apl.    27 

22,100 

1- 

7.200 

676,000 

+ 

159,500 

French  Sante  Fi  . . 

Jan. 

147.488 

+ 

55.7'3 

147,488 

4- 

55,713 

Gt.  Soutb.  of  Spain 

Apl.    so 

Ps.   34,626 

-Ps54,6i6 

Ps.  482,770 

— PS1656612 

Gt.  West,  of  Brazil.. 

„     27 

15,000 

+ 

2,800 

308,800 

+ 

86,530 

Havana  Central    . . 

„     20 

10,911 

+ 

2,841 

371.020 

+ 

78,402 

Inter,  of  C.Amer... 

Mar.  C 

30,205 

9.999 

77.876 

27.584 

La  Guaira  and  Car. 

,, 

5,500 

— 

4.000 

19.250 

— . 

8,230 

Leopoldina  . . 
Midland  Uruguay.. 

^a';. '' 

27.583 

+ 

4.35' 

538.540 

+ 

132.198 

14.894 

4- 

.56 

? 

119,814 

+ 

4.266 

Mogyana 

N.W.  of  Uruguay.. 

Jan. 

M2,l55,ooo 

+  M  755, 109 

M  2,133,000 

+  M755,10Q 

Mar. 

$23,500 

$5,258 

9 

$237,090 

+ 

$16,013 

Nitrate 

Apl.    30 

35.247 

— 

601 

t 

241,090 

+ 

13,700 

Paraguay  Central  . . 

,,      20 

2,770 

+ 

190 

: 

120,030 

4- 

14,390 

Paullsta 

Dec.     • 

M3,46l,ooo 

+  M  752,637 

12 

M34ll5,ooo 

4  M2188775 

Peruvian  Corpn     . . 

Mar.     • 

Si, 119.530 

+  Si02,530 

9 

39,322,560 

+ 

51020168 

Salvador      . . 

Apl.    20 

»3.633 

+ 

$261 

I 

$73,074 

$1,880 

State  of  Bahia  S.W 

Mar. 

M47.000 

il  20.000 

1 

M237,000 

_ 

M53,ooo 

S.  Paulo  (Brazilian; 

Apl.    21 

24.946 

+ 

2.958 

f 

5'4.47' 

+ 

167,289 

Sorocabana.. 

Jan.      • 

Mi,952,ooo 

+  «I99.895 

1 

Ml. 932.000 

4-:  ,1199,895 

Taltal 

Mar.    • 

20,392 

+ 

119 

9 

214,678 

4- 

57.023 

United  of  Havana.. 

Apl.    27 

80,142 

+ 

12,320 

1 

2,447.7" 

4- 

606,206 

West'n  of  Havana. . 

„     27 

12,926 

+ 

3,876 

1 

384.619 

+ 

107.674 

Zafra  and  Huelva. . 

Mar.    ♦ 

13,419 

+ 

3.201 

2 

35,9'2 

4- 

5,393 

Months,  i  From  Jan.  i.   t  From  Ju.'y  i.    c  Nett.    b  15  days,    a  10  days. 
COLONIAL  RAILWAYS. 


£ 

f. 

£ 

£      ■■ 

BeU» 

Dec.  •<: 

^  49.448 

— 

1,842 

1 

173,777 

+ 

6,532 

Canadian  Northern 

Apr.  21 

$929,300 

4  $163,900 

$33.473. '00 

4- 

J995.800 

Canadian  Pacific  . . 

..    21 

$3,016,000 

4-  $308,000 

$4 '.564.000 

+  1 

2104,000 

Gr.  Trk.  Main  Line 

»    21 

211,953 

4- 

34.912 

2,803,}26 

+ 

36,670 

Gr.Trk.  Western.. 

I.    21 

44.610 

4- 

3.473 

320,634 

36,698 

— 

3.292 

Detroit  G.  H.  &  M. 

„    >4 

12,678 

— 

2.096 

_ 

16,885 

GrTkPac  Prairie  So 

„    21 

24.093 

4- 

2,116 

4- 

109.876 

MaabonalanJ 

Nov.  • 

56,698 

_ 

1,486 

.— 

1.486 

Mid.  of  Westn.  Au«. 

Feb.   • 

8,617 

— 

88 

6'. 134 

+ 

3.9'5 

New  Cape  Central.. 

Mar  16 

2,177 

+ 

464 

23.919 

4- 

4.639 

Rhodesia 

Ian.  ♦£ 

76,393 

— 

4,188 

345.800 

4- 

7.737 

•  Month 

a.         S 

uly  1. 

t  J 

in.  I. 

c  i 

^rom  Oct.  1. 

HBTT  EAMIINai  FOR  MONTH. 

urn  lARNlMOS  TO  DATI. 

■AM 

MoDtb. 

AmoBiil. 

In.  or  Deo. 
on  last  year 

0^ 

Amount. 

In.  or  Dm. 
on  laU  year 

Dels. 

Dols. 

Dols. 

Dolt. 

Atchison  T.  &  S.  Ft 

Jan. 

l,912,OCO 

—1,689,900 

12 

47,829,000 

—  1,248,000 

Atlantic  Coast  Line 

1,075,000 

—  212,000 

12 

12,014,000 

4-     6O7.000 

Baltimore  &  Ohio  . . 

,1 

1,832,000 

—  1,163,000 

12 

30,389,000 

—  3.425.000 

Canadian  Northern 

Mar. 

210,400 

—   407,700 

9 

2^490,100 

—  5.014.400 

Canadian  Pacific  .. 

2,993,000 

—  944.000 

3 

4.752.000 

—  3.603,000 

Chesapeake  &  Ohio 

Feb. 

627,000 

—    160,000 

2 

346.000 

—  1,394,000 

Chicago  &  N.W.    .. 

Jan. 

b  785,000 

-2,797,000 

12 

27,015,000 

—  3,634.000 

Chicago  Burl.  &  Q. 

Dec. 

1,533,000 

—2,276.000 

12 

32,867,000 

—  6,232,000 

Chicago  G.W. 

Feb. 

131.000 

_     36.000 

2 

I|2,00O 

—    357,000 

Chicago  Mil.  &  S.P 

Jan. 

b  628,000 

-2,291,000 

12 

21,967,000 

—  9,360,000 

Chicago,  Rock  I. &P, 

Feb. 

271,000 

—    8 18 .000 

2 

331,000 

—  1,636,000 

Colorado  ^Southern 

Dec 

—       11,000 

11 

3  ^20,C00 

4-     370,000 

Cuba 

Jan. 

454.000 

h   246,000 

7 

i,390,oco 

4-     399,000 

Delaware  &  Hud.  .. 

Fet. 

3.600 

—   720,000 

12 

3,686,000 

—  2,124,000 

Denver  &  Rio  Gran. 

341.000 

—     12,000 

2 

756.000 

—     294,000 

Erie 

Dec. 

307.000 

4-1,848,000 
—£291,400 

12 

«b,338,ooo 
*  £409.700 

-  5,277.000 

Gr.Tr.  Main  Line.. 

Feb. 

6  24'i7oo 

2 

-  £601.550 

Grand  Trunk  Westn 

,, 

b  f40,'5o 

—  £27,000 

2 

£79.300 
£28.  too 

-    £64,500 

DetroitG.H.&Mil.. 

(,£13,100  1-     £3.900 

2 

-      £6.750 

Gt.  Northern 

Dec. 

1,165,000 
i,co8,ooo 

—1,401,000 

12 

22,987.000 

—  6,179.000 

Illinois  Central     . . 

Feb. 

—  238,000 

2 

53 '.000 

824,000 

4-  2,272.000 

Kansas  City  Soutbo. 
Lehigh  Valley 
Louisville  &Nashvl. 

455.000 

+      59.000 

2 

—        10,000 

Ja'i. 

b  983,000 

—1,346,000 

12 

9,403,000 

—  3,876,000 

Feb. 

1,462,000 

—     25,000 

2 

1,084,000 

Minn.  S.P.  (Soo)!  .. 

Dec. 

6126,000 

—   883.OCO 

12 

9.33'.ooo 

—  3,648,000 

Miss.  K.&  Texas.. 

Feb. 

76,000 

—      J12,000 

2 

201,000 

—     392,000 

Missouri  Pacific   .. 

Nov. 

1,690,000 

4-     321,000 

5 

9.425.000 

4-  1,920,000 

New  York  Cent. 8tH. 

Feb. 

705,000 

—  243.000 

2 

b     443.000 

4-  5.019,000 

N.Y.  N.  Haven  &H. 

Dec. 

207,000 

— ',7?5,'00 
—     60,000 

12 

23.815.000 

-2,145,000 

NewVorkOnt.iW. 

Feb. 

21,000 

2 

14.000 

Norfolk  &  Western, 

342,000 

—    833,000 

2 

765.000 

—  2,300,000 

Northern  Pacific  .. 

,, 

862,000 

—    694,000 

2 

1,644,000 

—  2,139,000 

Pennsylvania    East 
and  West  Lines.. 

3,702,000 

-66,"4ooo 

2 

12.371 

-<i[S''" 

Phil,  and  Reading  . . 

Nov. 

b  4i6,oco 

—1,939,000 

11 

14,877,000 

4-        80,230 

Reading 

Feb, 

'3'.54' 

)■      40,038 

2 

249,000 

St.  Louis  &  San  F. . 

Dec. 

1,223,000 

—    24»,000 

6 

9,576,000 

Seaboard  Air  Line.. 

673,000 

-      206,000 

12 

8,628,000 

Southern     . . 

Feb. 

1,772,000 

4-     412,000 

8 

17,716,000 

4-  1,667,000 

Southern  Pacific   . . 

Jan. 

.. 

—     536,000 

12 

39.785,000 

4-  7.953,000 

Union  Pacific 

__ 

4-       72,000 

12 

42,942,000 

Wabash       ..        .. 

Feb. 

b  166,000 

—       8,000 

2 

b     482,000 

!  Includes  Wisconsin  Central.    ♦  Grosa  earnings,    t  Surplus,    b  Deficit. 


NOTICES. 


THE 


UNION  BANK  OF  MANCHESTER 


LIMITED. 


The  Directors  of  the  above  Bank  hereby  announce  that  they 
have  DISCONTINUED  THE  FEE  (2/6  per  transfer)  hitherto 
charged  for  the  REGISTRATION  OF  TRANSFERS  OF 
SHARES  in  the  Company.  Therefore,  no  charge  will  in  future  be 
made  for  registration  of  such  Transfers.  By  order  of  the  Board. 
P.  FORRESTER,  Managing  Director. 

Manchester,  26  April,   1918. 


NATIONAL   BANK  OF  EGYPT. 

At  the  adjourned  Ordinary  General  Meeting  of  the  National 
Bank  of  Egypt,  held  in  Cairo  on  the  26th  April,  1918.  a 
DIVIDEND  of  16s.  per  SHARE  was  declared  PAYABLE  on 
the  30th  April,  1918,  for  the  year  ended  31st  December,  1917, 
COUPON  No.  24  will  therefore  be  payable  forthwith. 
Forms  for  listing  Coupons  may  be  obtained  at  the 
NATIONAL  B.\NK  OF    EGYPT, 

6  and  7,  King  William  Street, 

lx)ndon,  B.C.  4. 


BONDS   CANCELLED. 

IMPERIAL  JAPANESE  GOVERNMENT 
4|    PER   CENT.    STERLING   LOANS    OF    1905. 

The  YOKOHAMA  SPECIE  BANK,  LIMITED.  LONDON 
announces  that  ifaOO.OOO  4i  per  cent.  Sterling  Bonds  of  the  2nd 
Series,  have  been  purchased  on  behalf  of  the  Imperial  Japanese 
Government  for  the  purpose  of  cmcellation.  and  the  said  Bonds 
are  now  cancelled. 

The  quantities  and  denominations  of  the  Bonds  so  cancelled  are 
the  following : — 

556  of  ;f  200 
796  of  i:iOO 
460  of  ;f  20 

LONDON.  29th  April,  1918. 


Priottd  by  the  St.  Clkments  Press,  Ltd.,  Pottuga'  Street,  Kingsway,  London,  W.C,  for  the  Proprietor  of  1ni!  Investors'  Rkvikw,  and  Published 
by  The  Proprietob,  Norfolk  House.  Norfolk  Street.  Strand.  WC,  2— Mav  4,  1018.  IN  2478 


tlbe 


Jn\>e6tot6'  IRevfew 


FOUNDED    BY    A.     %f.     WILSON,     FEBRUARY,     1892. 


Vol.  XLI.— No.  1,062.] 

NEW  SERIE8. 


rRegistered  aa  a1 
L    Newspaper.    J 


SATURDAY,  MAY  ii,  1918. 


[Price  6d. 


CONTENTS. 


Passing  Events: — Cheque  Tax  —  Increased  Postal  Rates  — 
Australasian  Finance  —  Purchase  of  the  Liquor  Trade  — 
New  Railway  Regulations  —  German  "Peace  Offensive" 
—  Industrial  Union  of  Saxony's  Manifesto  —  Rumanian 
Peace  Treaty  —  Waste  Paper  Collection  —  London  County 
Council  Trams  —  British  Cotton  and  Wool  Dyers  —  Trust 
and  Agency  of  Australasia  —  Bryant  and  May  — ■  Bell's 
Asbestos  —  San  Paulo  (Brazilian)  Railway  —  Transvaal 
Mining  leases  Bill  —  Globe  and  Phoenix  Gold  Mining 
(pp.  451-6). 

Leading  Articles: — Advertising  "Stunts"  and  the  Nation's 
Financial  Necessities  —  By-the-Way  War  Notes  (pp.  456-7). 

Money  and  Credit  Notes : — Scarcely  a  Movement  in  Rates  — 
Bank  Return  —  Sir  Gordon  Nairne,  Bank  of  England 
Comptroller  —  War  Savings  Certificates  and  Higher 
Income-Tax  —  Foreign  Exchange  Movements  —  Bahia's 
Continued  Default  —  Silver  (pp.  458-60). 

American  Business  Notes  : — Government's  Expenditure  on 
Aviation  /328  000,000  —  Income-Tax  Problems  in  the 
United  States  —  Federal  Farm  Loan  Banks  —  Louisville 
and  Nashville  —  Lehigh  Valley  Railroad  —  St.  Paul, 
Minneapolis  and  Omaha  Railway  (p.  462). 

Company  Results  in  Brief  (p.  457). 
The  Week's  Stock  Markets  (pp.  460-1). 
London  Produce  Markets  (pp.  461-2). 


British  and   Mercantile  —  Liverpool, 
British    Crown    —    London    and 


of     Output      Restriction  — 
Rubber      Plantations    and 


Insurance   News  : — North 

London,    and    Globe 

Lancashire  (p.  462). 
Tea,    Oil,    and     Rubber :— Effects 

Harri:ons     and      Crosfield    — 

Investment  Trust  (p,  464). 

Mining  News ; — West  African  Gold  Output  —  Champion  Tin 
—  City  and  Suburban  —  New  Heriot  —  Sudan  Gold  — 
Basset  — •  Esperanza  Copper  and  Sulphur  —  Kaduna 
Syndicate  —  Amalgamated  Zinc  (p.  465). 

Company  Meetings; — Scottish  Union  and  National  Insurance 
Co.  —  Norwich  Union  Life  Insurance  Society  —  Spillers 
and  Bakers  —  The  Financial  Times  —  Nitrogen  Products 
and  Carbides  (pp.  465-7). 

What  Balance  Sheets  Tell : — London  Bank  of  Australia  — 
Industrial  Bank  of  Japan  —  Brazil  Great  Southern 
Railway  —  Spillers  and  Bakers  —  Samnuggur  Jute  Factory 
Co.  — Titaghur  Jute  Factory  Co.  —  Victoria  Jute  Co.  (p.  468). 

Public  Income  and  Expenditure  (p.  463). 

Dividends  Announced  (p.  463). 

Oilfields  Production  (p.  463). 

Answers  to  Coi  respondents  (p.  464). 

The  Week  in  Mines  (p    464). 

World's  Shipping  Output  (p.  467). 

Traffic  Returns  (p.  468). 


THE 


NATIONAL   PROVINCIAL 


AND 


UNION  BANK  OF  ENGLAND, 


LIMITED. 

Autliocised  Capital       .... 

Paid. Up  Capital 

Uncalled  and  Reserve  Liability    - 
Reserve  fund       ..... 

DIRECTORS. 


£ 
36,000,000 

5,476,884 
22,807,536 

4,000,000 


Ksq. 


Esq. 


C.  V.  CAMPBELL. 

C.  C.  CAVE,  Esq. 

J.  A.  CLUTTON-BROCK, 

H.  G.  DEVAS,  Esq. 

Brigadier  ■  General    H.    H.   J.   W. 

DRUMMOND.  C.M.G. 
M.  0.  FITZGERALD,  Esq. 
C.  R.  GILLIAT,  Esq. 
W.  H.  N.  GOSCHEN,  Esq. 
The  Rt.  Hon.  IX)RD   INCHCAPE. 

G.C.M.G.,  K.C.S.L,  K.CLE. 


F.  A.  JOHNSTON.  Esq. 

Col.  Sir  C.  V.  E.  LAURIE.  Bart., 

C.B.,  D.S.O. 
F.  C.  LE  MARCHANT,  Esq. 
The    Rt.    Hon.    The    EARL    OF 

LICHFIELD. 
S.  R.  PRYOR,  Esq. 
Sir  FELIX  SCHUSTER,  Bart. 
E.  A.  SMITH,  Esq. 
L.  E.  SMITH.  Esq. 
C.  H.  R.  WOLLASTON,  Esq. 


Joint   General    Managers. 

D.  J.  H.  CUNNICK,  F.  ELEY,  A,  G.  HOPEWELL, 

H.  H.  HART  &  L.  E.  THOMAS.  Esquirts. 

HEAD  OFFICE :    IS,  BISH0P3GATE,  LONDON,  E.G.  2. 
Princes  Street  Office  (Union)  -  2,  Princes  Street,  E.G.  2. 
Lombard  Street  Office  (Smiths),  i, Lombard  Street,  E.G.3. 
Cornhill  Office  (Prescott's)     -    -    -  50    Cornhill,  E.G.  3. 

FRENCH     AUXILIARY: 

Lloyds  Bank  (France)  and  National  Provincial  Bank  (France),  Ltd. 

London  (60,  Lombard  Street.  EX.  3).  Paris,  Biarritz, 
Bordeaux,  Havre,  Marseilles,  and  Nice. 


THE  TRUSTEES  CORPORATION 

(LIMITED). 


CAPITAL 


£1,050,000. 


The   first    Corporation    founded    in   the    United 
Kingdom  to  act  as  Executor  and  Trustee  of  Wilis 

and  Settlements. 

TruttevB  for  Debenture  Issues. 

Agents  for  Foreign,  Colonial  and  Municipal  Loans. 

Bonds    tf ranted    to    ReceiTers    «nd 
Administrators. 

Leasehold  and  Sinking  Fund  Policies  issued. 

Safe  Deposit  and  Halls  for  Meetings  at 
Winchester  House. 

Pamphlet  sent  on  application  to  the  Secretary  at  the  Head  Office. 

WINCHESTER    HOUSE,  OLD  BROAD  ST.,  LONDON,  E.0. 2. 

Liverpool  Branch  and  Safe  Deposit :  2,  BxchanKe  Street  East. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the   Imperial 
Japanese  Government,  1S90. 


HEAD  OFFICE      - 


TAIPEH,   FORMOSA. 


Amoy,  Batavia,  Bombay,  Canton,  Foochow,  Hankow,  Hongkongi 
Kuikiang,  Kobe,  New  Yotk,  Osaka,  Shanghai,  Singapore,  Swatow, 
Soerabaya,  Tokyo,  and  every  important  city  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  aodelsawhrrrc. 


lONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.G.  2. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1S62. 

Authoriud  Capital  £4,000.000 

Paid-up  Capital  1,800.000 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendoia,  Concordia,  Bahia 
Blanca,  Cordol»,  Tucuman,  1'arana,  Barraeas  (Buenos  Aires),  Once 
(Bminos  Aires),  Boca  (Buenos  Aires),  Calle  Sanla  F^  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires).  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agencv),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro.  Sao  Paulo,  Santos,  Per- 
nambuco,  I'ara,  Bahia,  Victoria,  Curityba,  Maniios  (Agency).  CHILI — 
Valparaiso,  Santiago.  FRANCE— Paris  (i6  Rue  HaKvy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.     Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  iKcoiiroRATiD  1880. 

Authorised  and  Issued  Capital,  f  6,000,000. 

Paid-up  Capital,  £2,000,000 ;  Reserve  Fund,  £2,000,000 ;  together   £4,eoo,ooo 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserve* f  8,000,000 

HEAD  OFFICE   -        -        -        71 ,  CORNHILL,  LONDON,   B.O.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Anttraiian 
States  and  Dominion  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection.  , 

DEPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
on  application. 


450 


XTbe  Jnvestoce'  IReview* 


Mav  II,   1918. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office:  15,  Gracechurch  Street,  London,  E.C.  3. 


Capital  Authorised         

Capital  luued      

Capital  Paid  Up 

Reserve  Fund  (Undivided  Profits) 


£1,500,000 

1,125,000 

562,500 

708,432 


Brxnehest 

INDIA,   BURMAH.   CEYLON,    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS,    MAURITIUS. 


The  Bank  buy»  and  jells  Bills  of  Exchange,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business   in  connection  with 

the  East,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.     Rates  for  other 

periods  on  application. 

On  ouprant  aoaounta  interest  is  allowed  at  2  percent,  per  annum  00 

daily  balances. 


THE  YOKOHAMA   SPECIE   BANK.   LIMITED. 

(Registered  in  Japan.) 

ESTABLISHED    1880. 

Subscribed  Oapita,!     ~.       . .        . .    Yon  48,000,000 

Capital  Paid  Up Yon  42,000,000 

RoBorvo  Fund  ..        ..  ..    Yen  22,100,000 

Head  Office:   YOKOHAMA. 
Branches  and  Agencies  at 
Bombay.  Honolulu.  Newchwang.  Shimonoseki. 

Buenos  Ayres  Hong  Kong.  New  York.  Singapore. 

Calcutta.  Kobe.  Osaka.  Sourabaya. 

Changchun.  Los  Angeles.  Peking.  Sydney. 

Dairen  (Dalny).  Lyons.  Rangoon.  Tientsin. 

Fengtien  (Mukden).       Manila  San  Francisco.  Tokyo. 

Hankow.  Nagasaki.  Seattle.  Tsinanfu. 

Harbin.  Shanghai.  Tsingtau. 

The  Bank  buys  and  receives  (or  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  tran::acts  Gen«ral  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  application. 
London  Office:  7,  BISHOPSGATE.  E.C.j. 

K    TATSIJMI,  Manager. 


CAN^ADA. 


THE    BANK   OF 
BRITISH   NORTH   AMERICA. 


Established  1836. 


INCORPORATED  by  ROYAL  CHARTER  1M0. 


PAID-UP   CAPITAL     ..    £1,000,000.  RESERVE  FUND       ..     /620,ooo. 

Head  Office:— 5,  GRACECHURCH  STREET,  LONDON,  E.C.  3. 
Court  of  Directors. 
Lt.-Col.F.  R.S.BALFOUR.   Lieut. E.GEOFFREY  Hon.  A.  R.  MILLS,  M.P. 
J.  H.  BRODIE.                            HOARE.R.N.V.R.     Major  C.W.  TOMKINSON 
J.H.MAYNECAMPBELL.  F.  LUBBOCK.  G.  D.  WHATMAN. 

E.  A.  HOARE.  

Deposits  received  at  pates  wliich  may  be  obtained  on  application. 

Drafta,  Lettara  of  Credit, 

Telagraphio  Tranafera 

issued  by  the  London  Office  upon  the  Chief  Cities  and  Towns  throughout 
Canada  and  the  United  States. 

ALL   KINDS    OF    BANKING    BUSINESS    TRANSACTED. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

Head  Office— 71,  Old  Bioad  Street,  E.C. 

Subscribed  Capital         «1, 276.747     10    O 

Paid  up  Capital 669,686       O    O 

Reserve  Fund  and  Undivided  Profits        ,.  409,826       1     1 

Reserve  Liability  of  Proprietors       .,         ..  606,962    10    0 

REMITTANCES  made  bv  CABLE. 

DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  ianed  upon 
Branches  and  Agents. 

BILLS  on  Australasia  NEGOTIATED  or  sent  for  collection. 

DEPOSITS  RBCEIVKD  for  periods  and  at  rates  which  may  be  aseertalsad 
on  application,  and  Banking  Business  of  every  dasertpticn  eoaduiHed 
with  Aastralla. 


UNION      BANK     OF     CANADA. 

Incorporated  1865.  Head  Offici!  :  WINNIPEG. 

PAID-UP  CAPITAL *S,ooo,ooo 

REST    AND    UNDIVIDED    PROFITS «3  600,000 

TOTAL   ASSETS    EXCEED  $143,000,000 

The  Batik  has  over  300  Branches  in  Canada,  and  Agents  in  the  principal 
cities  in  Amerloa.       General  Banking  Business  Conducted. 

Dapoalts  Reoalvad  for  hied  periods  at  favourable  rates,  which  may  be 
ascertained  on  application  to 

London  Oftloa*  :  >,  PRINCES  STREET.  E.C.  t,  and  18,  HAVMARKET,  8.W. 
N«w  York  AtMHiy :  4>.  Wall  StrMt 


INSURANCE. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 

£9,700,000 
or  over  £31,000  for  each  Working  Day. 

ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head  Office:  BARTHOLOMEW  LANE,  LONDON,  E.C.  2. 


ASSETS    EXCEED    £21,000,000. 


Chairman  i 
The    Hon.    N.    CHARLES    ROTHSCHILD. 


The  operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  Information  respecting 

ESTATE    DUTY   ahd 

CHILDREN'S   EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
ba  obtained  on  application 
to  the  Head  Office  as  above, 
OP  to  any  of  the  Office*  op 
Agencies   of    the    Company. 

O.  MORGAN  OWEN,  General  Manager. 

^bc  3nv)e0tor9'  IReview. 
SCALE  OF  CHARGES  FOR  ADVERTISEMENTS. 

PROSPECTUSES, 
Full  Page  ...  ...  ...      «25      O     O 

Under  one  page,  at  per  inch,  1      5     O 

single  column 
Special  positions  by  arrangement. 

REPORTS    OF    COMPANY    MEETINGS, 
Minimum     ...  ...  ...        £4-      O     O 

Per  Column...  ...  ...  6    11      6 


BALANCE-SHEETS. 

£15    IS  O 

8       2  6 

4      2  6 


COMPANIES' 

Whole  Page 
Half  Page    ... 
Quarter  Page 

DIVIDEND    NOTICES,  &C. 

Per  Inch      ...             ...             ...  «0    12  6 

BAiiXS    AND     INSURANCE     COMPANIES. 

Special  position          ...             ...  O  18  9 

Front    Page    (cover)    or   facing 

Money  Article,  per  inch      ...  fiO  16  O 

Ordinary  position,  per  inch      ...  O  12  6 

Discount  for  Series. — 5%  for  Thirteen,  10%  for  Twenty-six, 
15%  for  Thirty-nine,  and  20%  for  Fifty-two. 

"INVESTORS'   REVIEW,"    Norfolk    House,  Norfolk   Street,  Stranu, 
London,  W,C. 


! 


Owing  to  the  restrictions  placed 
upon  paper  supplies  we  cannot 
provide  newsagents  with  copies  for 
chance  sales.  Would  regular  readers  of 
the  "  Investors'  Review,"  therefore, 
kindly  place  an  order  with  their  local 
newsagents  or  subscribe  direct  to  the 
publisher? 


Zbc  5nveetore'  IReview. 


Vol.  XLI.— No.  1,063 

New  Series. 


SATURDAY,  MAY  11.   1918. 


CVil'.Tap.V)  Price  6d. 


PUBLISHER'S    NOTICES 

trbe  investors'  1ReV>lCW  is  a  subscription  Joumal  and  will 
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For  the  Colonies  and  Abroad  the  charge  is 

One  Year  £1  8s.  OJ.    Six  Months,   14s.  Od.    Three  Months.  7s.  Od. 

Short  of  Three  months  the  Price  is  6Jd.  per  Copy  Inland,  and 

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"Investors'  Review," 

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Telephone  No. :  Telegraphic    Address  : 

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Groups  o'  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


Passing   Events. 

We  have  been  perplexed  by  the  alleged  unanimity  of 
banks  in  accepting-  the  twopenny  charge  on  a  cheque. 
It  did  not  seem  to  us  to  be  in  their  interests  to  put 
iiny  additional  barrier  on  the  transfer  of  balances  in 
their  hands,  and  now  we  find  a  banker  writing  to  the 
Times,  criticising  the  proposal  in  a  way  which  shows 
us  that  the  opinions  collected  beforehand  must  have 
been  weeded  out  to  suit  Government  designs.  The 
writer  desires  to  be  anonymous,  but  his  declaration 
that  the  2d.  stamp  per  cheque  will  throw  "  a  lot  more 
trouble  on  banks  "  is,  we  think,  correct.  The  number 
of  cheques  drawn  by  the  small  trader  will  certainly  be 
reduced,  leading  to  a  larger  use  of  notes  and  coin, 
and  probably  enough  the  banker  will  suffer  in  other 
ways  by  losing  many  of  his  small  accounts,  which  are 
one  great  source  of  his  credit-giving  power.  Why 
should  a  small  trader  keep  an  account  with  a  banker 
if  he  cannot  use  cheques  to  make  payments?  .And  he 
will  not  use  them  if  he  has  2d.  to  pay  on  each  cheque 
he  draws.  Mr.  Bonar  Law,  says  this  banker,  may 
not  mind  paying  another  8s.  4d.  for  his  cheque-book, 
but  the  small  customer  will,  and  the  banker  is  unques- 
tionably right.  "  Oh,  but  the  restriction  in  the  use 
of  cheques  will  tend  to  check  inflation,"  some  people 
tell  us.  We  rather  think  the  Chancellor  of  the  Ex- 
chequer himself  holds  that  view,  or  patronises  it.  But 
cheque  emission  has  nothing  whatever  to  do  with  cur- 
rency inflation.  It  never  produces,  nor  can  it  main- 
tain, inflation.  Inflation  comes  from  other  sources 
altogether,  from  an  abuse  of  public  credit.  The  chequ? 
is  but  a  transitory  instrument  of  private  individual 
credit,  and  is  too  soon  extinguished  to  have  any  force 
in  debasing  the  public  currency  or  paper  money  vaguely 
secured  on  the  "national  wealth."  A  swollen  out 
note  circulation  inflates  for  one  thing  because  it  cannot 
be  cancelled.  Altogether,  this  2d.  stamp  on  bankers' 
cheques  is  a  paltry  measure,  calculated  to  yield  only 
an  insignificant  amount  at  the  best,  and  well  capable  of 
deranging  our  banking  habitudes  to  quite  a  formidable 
extent. 


have  said  above,  and  also  dissipates  the  "  misapprehen- 
sion "  which  has  arisen  in  the  minds  of  the  public 
that  bankers  were  consulted  by  the  Chancellor  of  the 
I'-xchequer  before  he  proposed  to  double  the  stamp  on 
cheques.  And  he  goes  on  to  affirm,  what  indeed  must 
be  obvious  to  every  reflecting  mind,  that  the  private 
individual  will  in  the  future  "  draw  a  larger  sum  from 
his  banking  account  "  when  he  draws  a  cheque  for 
his  ordinary  cash  requirements,  and  will  "  carry  a 
larger  sum  in  Treasury  notes  in  his  pocket  "  than  he 
was  formerly  accustomed  to  do.  In  other  words,  the 
new  cheque  tax,  if  per.severed  with,  will  powerfully 
tend  to  inflate  i.e.,  to  debase,  the  currency.  It  will 
also,  and  we  are  glad  to  have  confirmation  of  our 
view  by  so  eminent  a  banker  as  Mr.  Goodenough,  have 
the  effect  of  checking  the  multiplication  of  small  bank- 
ing .-tccounts,  and  that,  too,  just  at  a  time  when  "  it  is 
essential  that  the  whole  financial  strength  of  the 
(.ountry  should  be  placed  at  its  service."  And  for 
what?  For  a  paltry  hundred  thousand  or  two,  which 
is  hardly  a  drop  in  a  bucket  to  our  present  expen- 
diture. 


The  above  was  in  the  printers'  hands  before  Mr. 
F.  C.  Goodenough 's  letter  appeared  in  the  Times,  and 
we  just  let  it  stand.  Mr.  Goodenough,  the  able  man- 
ager   of    Barclay's    Bank,    confirms    every    word    we 


No  doubt  the  Postmaster-General,  Mr.  lUingworth, 
stated  incontrovertible  facts  in  the  House  of  Commons 
on  Monday  when  he  justified  the  proposal  to  increase 
the  postal  rates.  The  war  has  raised  the  cost  of 
everything,  so  that  now  the  margin  of  profit  on  the 
I'ost  Office  business  has  almost  reached  vanishing 
point.  Revenue  for  the  current  fiscal  year  is  estimated 
on  the  present  scale  of  charges  at  ;^'45 ,000,000,  and 
the  expenditure  at  ;^42,50o,ooo,  "  therefore,"  says  Mr. 
lUingworth,  "we  must  charge  more  for  the  work  done." 
Well,  we  are  not  convinced  of  that  merely  because  the 
circumstances  are  exceptional,  springing  out  of  the  w-ar 
which  is  increasing  the  cost  of  everything.  No  doubt 
other  countries,  the  colonies  and  the  United  States, 
France  also,  have  already  put  up  their  postal  charges  ; 
but  is  it  necessary  that  we  should  follow  their  example 
and  do  the  same?  How  much  of  the  increased  cost  of 
working  the  postal  business  is  due  to  gratuitous  .services 
imposed  upon  the  Department  by  the  various  measures 
of  the  Government?  What  quantity  of  matter  has  to 
be  handled  and  transmitted  for  nothing?  We.  ought  to 
know  that  as  well  as  the  fact  that  it  now  takes 
;^6  1 8s.  2d.  to  equip  a  postman  instead  of  £2  17s.  2d. 
before  the  war,  or  that  the  war  bonus  already  granted 


45' 


U'be  Jnveetors'  IReview. 


May  II,  1918. 


to  the  staff  works  out  at  ;£,"6,ooo,ooo  a  year,  with  the 
shadow  of  a  claim  for  another  ^"5,000,000  looming; 
before  us.  It  might  be  all  right  if  we  could  be  sure  of 
an  increased  revenue  to  correspond,  but  we  by  no  means 
can.  The  one  thing  we  are  sure  of  is  that  the  revenue 
is  likely  to  be  less  rather  than  more  as  a  result  of  the 
proposed  new  letter  charges.  What  has  been  the  ex- 
perience of  the  50  per  cent,  increase  in  the  minimum 
charge  for  a  telegram  ?  Fewer  telegrams.  And,  depend 
upon  it,  fewer  letters  will  be  written,  larger  recourse 
will  be  had  to  the  penny  postcard,  and  all  manner  of 
expedients  will  be  fallen  back  upon  to  reduce  the  weight 
of  the  necessary  letter  correspondence  if  we  put  the 
minimum  letter  post  up  to  i^.  It  may  be  otherwise 
with  the  book  and  packet  and  sample  postages,  and 
in  that  direction,  we  think,  the  proposed  charges  are  to 
be  commended  ;  certainly,  the  loss  caused  to  the  Post 
OfTice  by  the  parcels  post  ought,  if  possible,  to  be  got 
rid  of.  Before  the  war,  Mr.  Illingworth  said,  the  parcel 
business  involved  the  Post  Ofllice  in  a  loss  running  up 
to  as  much  as  ;^i, 000,000  per  annum,  and  that  ought 
not  to  be.  But  the  letter  post  is  another  matter,  and 
we  still  think  that  a  graduated  .scale,  more  scientifically 
based  on  the  weight,  might  have  attained  the  desired 
end.  Unless  we  are  much  mistaken,  the  utmost  weight 
carried  for  a  penny  formerly  was  J  oz.  ;  it  certainly  was 
the  minimum  for  foreign  letters.  Supposing  the  penny 
charged  were  again  to  be  limited  to  letters  under  that 
•weight,  and  that  the  scale  went  up  step  by  step,  as 
we  suggested  a  fortnight  ago — i  oz.  for  i|d.,  i^  ozs. 
for  2d.,  2  ozs.  for  2jd.,  and  so  on,  up  to  ^  lb. — would 
not  that  be  likely  to  give  a  larger  revenue  than  the 
scale  now  proposed? 


Certainly  Australia  has  good  reason  to  be  proud  of 
its  efforts  in  this  war,  and  not  least  of  its  financial 
efforts.  Including  this  last  loan  which  has  been  tri- 
umphantly subscribed  to  the  amount  of  ;£'4i  ,000,000, 
the  Australian  public  have  pledged  themselves  to  the 
extent  of  ;^i 47,000,000  in  order  to  take  their  share  in 
the  Imperial  obligations  created  by  the  war.  As  the 
Commonwealth  has  given  its  sons,  so  it  has  given  its 
sovereigns  without  stint,  and  in  so  doing  has  elevated 
the  moral  standing,  so  to  say,  of  the  young  nation  in 
the  sight  of  mankind.  For  an  act  of  this  description 
means  a  s(elf-denial  greater  perhaps  (than  even  the 
people  themselves  have  yet  realised.  To  pay  the  mere 
debt  they  have  contracted  will  demand  a  long  and  sus- 
tained effort  on  the  part  of  a  population  temporarily 
crippled'  and  checked  in  its  growth  by  the  ravages  of 
the  war.  It  would  perhaps  be  a  light  matter  were  not 
the  obligations  of  that  population  already  severe.  They 
have  been  put  out  of  sight  to  a  great  extent  since  the 
war  began,  but  are  ever  present  and  insistent  just  the 
same,  and  some  of  the  States  have  been  developing 
their  resources  by  means  of  borrowed  money  to  an 
extent  which  has  outstripped  the  assets  created.  In  the 
six  years  ended  June  30  last  New  South  Wales  alone 
increased  its  public  debt  by  ;^42, 614,000,  making  the 
total  now  ;^i 38, 138,000,  or,  as  the  Australasian  Insur- 
ance and  Banking  Record  points  out,  nearly  44  per 
cent,  more  than  it  was  on  June  30,  191 1,  when  the  total 
^3s  ;^9S, 524,000.  The  purely  State  debt  of  this  colony 
has  risen  from  £57  9s.  9d.  per  head  to  about  £7<\, 
but  the  colony  apparently  does  not  feel  the  strain  at 
all,  and  is  not  likely  to  as  long  as  it  can  p>ersist  in 
borrowing.  Its  rulers  certainly  retain  a  confidence  in 
the  power  of  wealth  to  produce  wealth — whether  men 
are  there  to  utilise  it  or  not — which  borders  on  the  sub- 
lime, gets  so  near  that  limit  as  to  excite  fears.  The 
borrowing,  however,  is  to  go  on,  not  merely  the  New 
South  Wales  borrowing,  but  that  of  other  States,  and 
it  may  be  well  to  remind  the  public  here  that  while  New 
South  Wales  stands  out  of  the  compact  made  by  the 
Commonwealth  with  the  other  States,  that  it  should  do 
their  borrowing  for  local  purposes,  these  six  States  and 
the  Commonwealth  together  have  arranged  to  raise 
money  to  the  extent  of  nearly  :^i6,ooo,ooo  this  vear — 
outside  the  war  borrowings  altogether.  Victoria  has 
modestly  reduced  its  requirements  to  ;^i, 750,000,  which 


its  Government  expects  to  procure  locally  on  easy  terms. 
But  ;^2, 275,000  will  have  to  be  provided  for  Queens- 
land, ;£,'2, 125,000  for  South  Australia,  £i,3S°''^°°  ^o"" 
Western  Australia,  and  ;^35o,ooo  for  Tasmania,  while 
the  Commonwealth  itself  expects  to  spend  ;^'2,743,ooo 
on  its  public  works,  and  may  have  to  borrow  it  all. 
Add  the  ;£r5, 000,000  New  South  Wales  is  arranging  to 
procure  on  its  own  account,  and  we  get  ;£^i 5,593,000 
as  the  debt  to  be  created  in  Australia  this  year  to  meet 
domestic  requirements.  It  becomes  more  and  more 
difiicult  to  gratify  this  passion  for  development  through 
the  unbridled  mortgaging  of  a  people's  labour,  because 
we  have  less  and  less  money  to  spare,  and  consequently 
the  Governments  in  Australia  should  prepare  them- 
selves to  encounter  disappointments.  Out  of  a  feeling 
of  good  comradeship  we  cannot  refuse  requests  for  help 
when  they  come  along,  but  our  own  circumstances  are 
such  that  the  terms  must  be  harder,  and  the  amounts 
smaller.  In  the  past  two  years  the  Commonwealth,  in- 
stead of  borrowing  ;^i6, 390,000  for  home  use,  as  was 
piojected  for  the  two  years  1916-17,  has  had  to  content 
itself  with  ^'i2,oco,ooo.  It  got  ;<^4,ooo,ooo  of  this  in 
June,  1916,  at  5^  per  cent.,  but  the  two  loans  issued  last 
year,  viz.,  ;^3, 500,000  in  April,  and  ;^4,500,ooo  in 
August,  cost  more  than  5^  per  cent.  ITiat  was  the 
nominal  rate,  but  the  April  loan  was  issued  at  98,  and 
the  .August  one  at  98^,  whereas  the  5J  per  cent,  loan  of 
June,  1916,  was  issued  at  par.  This  year  we  shall  be 
surprised  if  our  market  is  found  disposed  to  provide 
any  appreciable  amount  of  money  for  local  use  in  Aus- 
tralia and  New  Zealand  at  less  than  6  per  cent. 


Purchase  of  the  liquor  trade  by  the  State  is  estimated 
to  cost  between  400  and  500  mUlions,  a  fairly  large 
bill,  even  in  these  days  of  big  figures.  The  English, 
Scottish,  and  Irish  Committees  which  have  been  con- 
sidering the  matter  do  not  enter  into  questions  of 
policy,  which  lie  outside  the  scope  of  their  inquiry,  but 
they  will  have  to  be  carefully  considered  before  the 
country  is  saddled  with  such  a  large  prospective  addi- 
tion to  the  National  Debt.  We  should  think  that  the 
Government  and  many  future  Governments  will  have 
their  hands  sufficiently  full  in  taking  care  of  the  War 
Lx>anis  not  to  be  anxious  to  undertake  this  additional 
responsibility,  which  is  almost  certain  to  prove  diisas- 
trous  from  the  financial  point  of  view.  If,  however, 
purchase  is  decided  upon  the  terms  suggested  by  the 
committees  would  form  a  good  basis  of  discussion,  if 
not  agreement.  In  the  case  of  England  and  Wales 
the  interests  to  be  acquired  are  estimated  to  have  had 
a  pre-war  value  of  not  less  than  ;^350,ooo,ooo.  The 
proposal  with  regard  to  breweries  is  that  the  true 
average  commercial  profit  for  the  years  1910-14  should 
be  ascertained,  and  the  businesses  paid  for  on  the  ba^is 
normally  of  15  years'  purchase,  the  price  to  be  satis- 
fied by  the  issue  of  special  Government  stock  when 
the  purchase  is  completed,  and  in  the  meantime  the 
owners  would  receive  the  same  average  income  as  in 
the  pre-war  period.  Free  houses  would  be  dealt  with 
on  the  same  lines  as  breweries,  except  that  no  normal 
multiplier  is  recommended,  that  point  being  left  to 
agreement,  or  to  be  decided  by  a  tribunal.  We  need 
not  discuss  the  other  details,  but  it  must  be  perfectly 
obvious  that  to  carry  out  the  scheme  will  involve  an 
immense  amount  of  labour  and  expense,  without  any 
compensating  advantage  that  we  can  set.  Through 
licences  and  other  taxation  the  State  reaps  a  larger 
revenue  than  it  could  possibly  hope  to  do  as  owner, 
and  the  army  of  inspectors  that  would  be  necessary  to 
conduct  the  business  as  a  Government  department 
opens  up  an  appalling  prosp>ect.  Meantime,  neither 
the  temperance  party  on  the  one  hand  nor  the  licensed 
victuallers  on  the  other  are  likely  to  be  satisfied  with 
the  propo-sed  terms,  and  if  the  reports  are  not  dis- 
creetly pigeon-holed,  there  will  be  interminable 
wrangling,  to  the  confusion  of  other  more  important 
issues.  

Is  not  the  new  schedule  of  railway  passenger  regula- 
tions rather  hard  upon  the  jx^orer  memibers  of  the  com- 
munity?   Why  should  the  season  ticket  of  the  clerk. 


May  II,   1918. 


Hbe  Jnvestots'  IReview. 


4S3 


male  and  female,  whose  home  is  in  the  suburbs,  be 
arbitrarily  raised  and  other  concessions  by  which  the 
railway  companies  tempted  the  people  to  go  into  the 
country'  be  either  abolished  or  modified  to  their  hurt? 
For  some  time  an  agitation  of  the  usual  screechy  type 
has  been  going  on  in  the  Daily  Mail  and  other  Harms- 
worth  organs  against  allowing  what  is  described  as 
"  bomb-dodgers  "  to  take  refuge  in  the  country,  and 
apparently  the  Government,  protected  and  nurtured  by 
the  Harmsworth  clan,  has  sought  to  obey  its  masters' 
injunctions  in  this  respect,  with  the  result  that  the  bur- 
den upon  the  least  rich  will  be  made  heavier.  This  is 
Harmsworthian  democracy  in  action  all  over.  Season 
tickets  for  places  twelve  miles  from  Charing  Cross  will 
not  be  renewed  that  were  taken  out  first  at  a  later  date 
than  January  i,  1917,  unless  the  traveller  can  show 
good  cause,  &c.,  &c.  Seasons  will  not  be  issued  for 
less  than  six  months,  and  no  refunds  will  be  made  if  the 
holder  surrenders  his  ticket.  Why  this  lining  of  the 
innocent?  It  looks  as  if  the  new  railway  management 
had  a  positive  spite  against  the  traveller.  Season- 
ticket  holders  who  began  to  trust  their  fortunes  and 
life  to  the  care  of  the  railways  after  January  i,  1917, 
will  not  get  their  tickets  renewed  except  at  a  20  per  cent, 
increase,  and  within  the  twelve-mile  radius  the  increase 
is  to  be  a  universal  10  per  cent.  It  looks  pettifogging, 
but  it  may  enable  the  official  to  please  the  Harmsworths 
by  a  parade  of  vigilance  against  the  ".'\lie-n,"  and  what 
is  justice  to  the  people  in  comparison  with  that? 

What  truth  there  is  in  the  stories  about  a  "peace 
offensive  "  instigated  by  the  Berlin  band  of  assassins 
we  do  not  know  nor  do  we  care  much.  It  does  not 
matter  what  plausible  offers  are  put  forward  sneak- 
ingly  by  unacknowledged  agents  or  otherwise,  so  long 
as  the  men  responsible  for  the  government  of  the 
Allied  countries  receive  them  with  silence  and  refuse 
absolutely  to  enter  into  any  discuss<ion  while  the  Ger- 
mans have  arms  in  their  hands.  Nevertheless,  it  may 
be.  useful  to  reprint  the  latest  proposals  alleged  to  be 
German  and  to  be  put  forward  on  German  behalf  by  a 
Dutchman  deputed  for  the  purpose.  The  Dutchman 
in  question  is  said  to  be  a  former  War  Minister,  Colyn 
by  name,  and  .the  instigator  is,  naturally,  the  inevit- 
able von  Kuhlmann,  most  plausible  and  notoriou_s  of 
deceivers.  Here  are  the  terms  as  given  by  the  Central 
News  : — 

I. — Germany  will  renounce  all  claims  in  the  west.  2. — 
Belgium  will  be  restored  as  an  independent  State,  fully 
autonomous.  3. — Alsace-Lx>rraine  will  receive  full  autonomy 
within  the  German  Federation.  4. — The  status  in  the  east  will 
remain  as  at  present.  5. — Austria  will  make  certain  concessions 
to  Italy  in  the  Trentino.  6.— Balkan  questions  will  be  solved  by 
an  international  conference.  7. — All  Colonial  questions  afiect- 
♦ng  Africa  and  Asia  Minor  will  be  solved  by  a  conference  of 
all  the  belligerents.  8. — Germany  will  abandon  all  claims  to 
Kiao-Chau,  but  will,  in  exchange,  require  certain  economic 
concessions  in  China. 

Assuming  this  to  be  an  emanation  from  the  Ger- 
man military  authorities,  it  is  valuable  as  showing  the 
bait  they  think  likely  to  capture  the  Allies.  It  shows, 
also,  the  ignorance  of  these  authorities.  They  cannot 
comprehend  tihe  attitude  of  the  Allies  towards  their 
crimes-  Belgium  is  to  be  "restored,"  but  with  no 
hint  of  compensation  ;  Alsace-Lorraine  to  be  offered 
"  automony  within  the  German  Empire  ";  and  Austria 
is  made  to  hold  out  a  vague  hope  to  Italy  in  the  Tren- 
tino ;  while  the  Balkan  problem  is  to  be  handed  over  to 
an  "  international  conference,"  and  Colonial  questions 
affecting  Africa  and  Asia  Minor  are  to  be  settled  by 
"  a  conference  of  the  belligerents."  Germany,  too,  is 
declared  ready  to  abandon  all  claims  to  Kiao-Chau,  but 
demands  in  exchange  "  economic  concessions  in 
China."  All  this,  indeed,  marks  a  stage  in  Prussian 
education,  but  it  is  only  a  first  stage.  The  arrogant 
despots  wiU  have  to  try  again  before  they  can  be  lis- 
tened to  ;  and,  first  of  all,  they  must  lay  down  their 
arms  and  sneak  away  home.  For  the  sake  of  the 
future  of  mankind  that  preliminary  is  essential.  To 
the  Germans  them.selves  it  is  essential  as  much  as  to 
the  world,  for  only  in  this  way,  seemingly,  will  it  be 
possible  to  teach  them  what  the  militarism  they  have 
been  brought  up  to  worship  and  serve  really  is. 


.\n  organisation  called  the  Industrial  Union  of 
Saxony,  which  is  said  to  be  one  of  the  largest  of  its 
kind  in  Germany,  has  been  ruminating  on  things  a  little, 
and  has  issued  a  manifesto  to  tell  the  German  public 
some  of  the  conclusions  it  has  arrived  at.  Amongst 
these  is  the  information  that  the  war  has  added  14,800- 
millions  of  marks  to  the  peace  expenditure  of  4,800- 
million  marks.  That  is  to  say,  instead  of  an  expendi- 
ture of  ;^240,ooo,ooo  per  annum,  Germany  is  now  face 
to  face  with  an  expenditure  of  ^980,000,000  per  annum, 
and  this  is  not  at  all  an  agreeable  fact,  for  the  Saxon 
story  goes  on  to  point  out  that  a  load  so  heavy  would 
absorb  about  60  per  cent,  of  the  whole  income  of  the 
nation,  and  capitalised  at  5  per  cent.,  it  would  mean  a 
debt  of  392,000  million  marks,  or  ;^i9, 600,000,000, 
assuming  the  mark  to  be  still  worth  a  shilling,  which 
is  in  the  circumstances  a  derisory  assumption.  For  it 
is  more  than  "  the  entire  national  wealth  of  Germany 
before  the  war,"  and  it  is  declared  that  such  a  burden 
"would  completely  paralyse  production  and  all  spirit 
of  enterprise,  and  bring  complete  ruin  to  the  country's 
economic  life."  A  contrast  is  also  made  between  the 
condition  of  Germany  and  that  of  other  countries  with 
their  Colonial  possessions  and  rich  national  resources 
and  valuable  raw  materials — a  contrast  much  to  Ger- 
many's disadvantage.  The  inference  drawn  from  this 
melancholy  tale  is  that  Germany  must  have  "  indemni- 
ties," must  steal,  if  the  country  is  to  be  saved  from  de- 
struction. We  quite  appreciate  the  point  of  view  and 
the  argument,  but  the  trouble  is  that  indemnities  cannot 
be  obtained.  The  Germans  are  giving  us  an  excellent 
object-lesson  of  how  to  fail  of  the  object  aimed  at  irt 
Russia,  where  their  emissaries  and  troops  go  pig-root- 
ing and  rampaging  over  the  country,  "conquering" 
this  city  and  seizing  that  other  asset,  but  can  get  no  in- 
demnity, not  even  grain  enough  to  feed  the  hungry 
mouths  at  home.  Is  there  any  more  likelihood  that 
Germany  will  extract  an  indemnity  from  her  other  great 
opponents  in  the  West — France,'  Italy,  Great  Britain,, 
and  the  United  States?  None  that  we  can  see,  but  the 
Germans  evidently  still  have  hopes,  and  are  as  yet  too 
uneducated  in  plain  economic  facts  to  be  able  to  under- 
stand that  by  continuing  to  resist  their  fate  the  Prus- 


Al 


1.— THE   BUS  QUEUE  RULE 

Passengers  can  only  enter  a  bus  one 
at  a  time.  By  forming  into  queues 
at  the  recognised  stopping  points,  it 
will    be    possible    to   enter  in  comfort, 

THIS  IS  A  RULE  OF  GOOD  CONDUCT  MADE 
IN   THE  INTERESTS  OF  THE  PUBLIC, 


G^^L 


Electric  Railway  House,  Broadway,  Westminster,  S.W.I. 


454 


TLbc  5nve6tor6'  IReview* 


Mav   II,  1918. 


sian  tyrants  who  are  driving  the  German  race  to  its 
ruin  are  every  day  rendering  the  condition  of  the  people 
they  tyrannise  over  more  hopeless  and  at  the  same  time 
every  day  increasing  the  impossibility  of  obtaining  any 
plunder  whatever. 

Rumania  has,  under  coercion,  sigried  away  her 
liberties  to  Prussia,  and  her  people  deserve  the  utmost 
sympathy  and  help  of  the  Allies.  We  hope  it  will  not 
be  long  now  until  the  events  in  the  West  again  open 
a  prospect  of  freedom  to  the  betrayed  nation.  For 
Rumania  has  done  well  and  been  loyal  to  the  Allies, 
fighting  for  liberty  with  a  noble  abandon,  and  must  not 
be  forsaken  when  the  time  comes  to  rearrange  national 
boujidiarics  after  the  Prussian  has  been  beaten  to  the 
earth.  I'he  Rumanians  wiill  geit  their  country  back 
again  with  its  borders  enlarged.  Meanwhile,  as  the 
Times  correspondent  lately  in  that  country  says,  the 
fate  of  Rumania  is  really  more  tragic  than  that  of 
other  jnvaded  countries,  which,  although  suffering 
immensely,  are  still  fighting  hand  in  hand  with  the 
rest  of  the  Allies.  But  Rumania  had  no  choice.  She 
had  to  submit  because  of  Russia's  failure,  and  her  par- 
ticipation in  the  .struggle  has  reduced  the  country  to 
such  a  primitive  condition  that,  as  the  same  correspon- 
dent says,  "  the  dearest  ideals  of  the  extreme  Socialist 
had  been  partially  reached."  Money  had  totally  lost 
its  value,  and  "  the  richest  capitalist  was,  in  some  re- 
spects, as  poor  as  the  poore.sit  working  man."  Goods, 
after  having  reached  the  extreme  limit  of  ihigh  prices, 
could  no  longer  be  bought  for  money,  so  barter  came 
into  operation.  Ten  eggs  were  exchanged  for  a  box 
of  m-atches,  or  for  2  ozs.  of  sugar.  A  chicken  cost 
2  lbs.  of  sugiar,  and  for  a  duck  one  could  get  a  gallon 
of  petrol.  Everybody  began  to  create  currency,  one 
may  say,  and  those  who  had  a  .small  yard  began  rear- 
ing poultry.  The  Belgian  Legation  had  beaten  the  re- 
coixl,  having  been  able  to  rai.se  about  150  chickens  and 
turkeys,  and  the  British  Legation  came  second.  Be- 
fore Rumania  joined  the  Allies  in  war  she  had  absolute 
economic  freedom,  and  could  sell  her  harvests  wherever 
she  pleased.  In  1915  and  1916  the  Rumanian  exporters 
sold  wheat  to  Germany  and  Austria  at  from  10s.  to  12s. 
a  bushel,  and  the  .A.ustro-German  importers  had  to  pay 
besides  a  heavy  export  tax  in  gold  to  the  Government. 
By  the  treaty  now  ratified  Germany  has  secured  for 
herself  and  her  Allies  practically  the  whole  Rumanian 
harvest  for  years  to  come,  at  a  price  which  she  is  going 
to  fix,  and  in  such  conditions  that  "  no  diplomatic  inter- 
vention should  be  necessary  in  the  future  for  securing 
the  grain  necessary  for  the  Allied  Central  Powers." 
Rumania  has  also  lost  control  of  her  rich  oilfields,  which 
were  in  American,  German,  and  British  hands,  but  all 
under  Rumanian  Government  control.  When  the  Ger- 
mans came  all  the  oil  industry  was  destroyed  so  effec- 
tually that,  although  German  engfineers  have  been  work- 
ing hard  since  then,  boring  new  wells,  only  some  10  to 
15  per  cent,  of  the  normal  production  has  been  attained. 
But  the  Germans  have  taken  care  under  the  treaty  of 
peace  that  they  should  have  the  control  and  monopoly 
of  the  oilfields,  not  even  50  per  cent,  of  which  have  ever 
yet  been  worked,  for  a  period  of  99  years.  This  will 
make  them  entirely  independent  of  the  American  market. 
When  Rumania  began  the  war  her  Budg-et  was  about 
[;^20,ooo,ooo  a  year,  and  her  national  debt  some 
;^6o, 000,000.  The  debt  is  now  about  ;^25o,ooo,ooo, 
the  interest  on  which  alone  will  be  about  ;^i2, 500,000. 
What  the  revenue  will  be  no  one  can  yet  say,  but  the 
debt  alone  will  absorb  more  than  three-quarter.';  of  her 
entire  income  in  pre-war  days.  Is  not  this  treaty  one 
whose  hard  terms,  imposed  upon  a  country  so  ex- 
hausted, will,  by  their  very  severity,  defeat  the  German 
greed  ? 


Lord  Beaverbrook,  in  the  debate  on  Lord  Denbigh's 
motion  last  Wednesday,  told  the  House  of  Lords  that 
before  the  war  8,ot>o  tons  of  news  print  per  week  was 
suDolied  to  the  reading  nublic.  Now,  owing  to  shipping 
difficulties,  the  suoply  has  fallen  to  2,000  tons  of  such 
print  a  week.  Consequently,  there  is  no  clean  paper 
available  with'  which  to  intensify  our  anti-peace  propa- 


ganda. That  is  the  purport  of  his  information,  and  it 
induces  us  to  ask  why  has  not  Lord  lieaverbrook's  de- 
partment, or  some  other,  had  the  capacity  to  organise 
a  systematic  collection  of  waste  paper?  Sundry  un- 
co-ordinated  agencies  devote  themselves  to  this  occupa- 
tion now,  to  their  own  great  profit,  no  doubt,  but,  so 
far  as  our  experience  goes,  the  result  is  neither  satisfac- 
tory nor  encouraging  to  the  general  public  to  prevent 
waste,  there  being  no  sufficient  inducement  to  take  the 
trouble  to  do  otherwise.  It  should  be  a  matter  of  com- 
parative ease  to  arrange  to  do  things  in  a  better  style. 
Failing  the  Government,  would  it  not  be  possible  for 
local  newsagents,  say,  to  organise  collecting  depots? 
The  amount  of  used  paper  now  wasted  is  enormous. 


It  would  be  quite  easy  to  find  sufficient  reasons  for 
the  fact  that  tramway  undertakings  in  the  Metropolitan 
area  do  not  seem  to  pay,  but  nothing  would  be  gained 
by  raking  over  the  dead  bones  of  almost  forgotten  con- 
troversies. For  years  past  the  London  County  Council 
has  done  its  best  to  crab  the  development  of  the  magni- 
ficent system  which  it  controls,  where  an  enlightened 
policy  would  have  proved  not  only  a  boon  to  the  travel- 
ling public,  but  a  source  of  substantial  profit  to  the  rate- 
payers. It  is  now  proposing  to  raise  fares  to  meet  the 
increase  in  working  expenses  and  an  alleged  deficit 
which  does  not  really  exist  except  as  a  sop  to  the  in- 
curable prejudices  of  the  "  Moderate  "  party.  What 
ought  to  be  done  is  to  suspend  or  curtail  temporarily  the 
excessive  amount  set  aside  for  sinking  and  depreciation 
funds,  but  that  would  upset  one  of  the  chief  planks  in 
the  Moderate  platform,  and  the  public  must  suffer  until 
they  elect  representatives  of  a  less  narrow-minded 
character.  Next  to  the  County  Council's  the  largest 
system  is  that  of  the  Metropolitan  Ellectric  Tramways, 
Ltd.,  which  last  year  had  a  gross  revenue  of  ;^'594,ooo, 
an  increase  of  p^SSjO^*';  but  expenses,  including  a  pro- 
vision of  ;^22,70o  for  future  reconstruction  and  re- 
newals, and  ;^44,8oo  for  interest,  amounted  to 
;^572,950,  leaving  a  balance  of  only  ;^22,9io.  Out  of 
this  ;^9,87o  is  carried  to  reserve,  mainly  for  the  redemp- 
tion of  debenture  stocks,  the  preference  dividend  is  cut 
down  from  5  per  cent,  to  2  per  cent.,  and  the  balance 
forward  is  increased  by  ;^i,30o  to  _^3,ooo.  Fares  were 
raised  during  the  year,  but  the  higher  scale  did  not 
become  fully  operative  till  October,  so  that  better  results 
may  be  anticipated  in  the  current  year.  Traffic  statistics 
are  not  now  furnished,  but  in  1916  the  company  ran 
10,682,000  car  miles  and  carried  io5_million  passengers 
at  an  average  fare  of  i.  i6d.  London  United  Tramways, 
Ltd.,  obtained  ;^354,590  In  gross  receipts,  an  increase 
of  ;£'i8, 140,  but  including  ;^  13,000  more  at  ;^90,300 
for  maintenance  and  ;^7 1,600  for  interest,  outgoingfs 
amounted  to  ;^363,500,  and  the  year  closed  with  a' 
deficiency  of  ;^g,ooo,  which  raises  the  debit  balance  to 
;^i  1,600.  No  details  of  traffic  are  given,  but  the  com- 
pany is  seeking  powers  to  increase  fares  beyond  the 
limits  fixed  by  its  previous  Acts.  The  history  of  the 
company  has  been  a  painful  one,  but  the  unfortunate 
holders  of  ;^2,25o,ooo  share  capital  deserve  some 
sympathy,  and  the  position  even  of  the  ;^i,750,ooo 
debentures  is  by  no  means  secure.  The  South  Metro- 
politan Electric  Tramways  and  Lighting  Co.,  Ltd.,  is 
a  much  smaller  venture,  but  more  successful.  Gross 
receipts  amounted  to  ;^86,i40,  an  increase  of  ;^17,300, 
and  the  nett  revenue  was  ;^40,220,  an  increase  of 
;^io,20o.  .'\fter  .setting  aside  ;^2, 000  more  at  ;^6,ooo 
to  renewals  fund  and  again  placing  ;^4,ooo  to  reserve 
the  preference  shares  receive  their  full  dividend  of  6  per 
cent,  for  1916  and  3  per  cent,  on  account  of  1917,  as 
against  5  per  cent,  for  191 5.  Electricity  supply  pro- 
duced ;^2i,230,  an  increase  of  ;^3,8oo,  and  traction 
brought  in  ;^64,i7o,  an  increase  of  ;^i3,300.  It  is 
satisfactory  to  see  the  company  making  progress,  and 
the  :^i8o,ooo  of  ordinary  share  capital  ought  to  be 
coming  within  sight  of  a  dividend.  Anyhow,  the  record 
compares  favourably  with  that  of  its  more  ambitious 
neighbours. 

In    the   vear    to    March  31   the   British   Cotton    and 
Wool  Dyers'   Association,  Ltd..    did   not  do  quite  so 


Mav   II,   1918. 


XTbe  5tivc8toi8'  IReview, 


455 


well  as  ill  the  previous  twelve  months,  no  doubt  owing- 
to  shortnge  in  the  supply  of  materials  and  other  trade 
difficulties.  After  deducting  ;^8,500  more  for  repairs 
and  renewals  and  providing  for  excess  profits  duly  and 
other  contingencies,  the  profits  were  ;£"35,ooo  smaller 
at  ^'iS''.940-  As  usual,  ^25,000  is  placed  to  deprecia- 
tion fund  (which  now  stands  at  ;i6^35,ooo),  and  the 
nett  profit  of  ;C^7,SOO  is  also  ^'35,000  down.  On  this 
occasion,  therefore,  the  dividend  of  10  per  cent,  is  re- 
peated, without  the  addition  of  a  5  per  cent,  bonus,  as 
paid  last  year,  and  after  again  placing  ;£^5o,oco  to  re- 
serve, raising  it  to  ;/^20o,ooo,  'he  carry-foi-v\ard  is  a 
little  smaller  at  ;^'45,9oo.  The  company  is  in  a  strong 
financial  p)»sition,  liquid  assets  amounting  to 
;^67i,ooo,  against  floating  liabilities  amounting  to 
;^"2o8,ooo. 


Accounts  presented  by  the  Trust  and  Agenc)  Co.  of 
Australasia,  Ltd.,  arc  now  given  in  a  somewhat  dif- 
ferent, but  on  the  whole  better,  form.  Revenue  last  year 
at  ^,"127,800  sliowed  an  increase  of  ;£,"8,40o,  following 
a  gain  of  ^,'7,000  in  igi6,  but  the  directors  are  content 
to  leave  the  dixidend  unchanged  at  7i  per  cent,  (tax 
free),  and  to  increase  the  carry  forward  from  ;^'9,7oo  to 
;^25,2oo.  The  reserve  fund  remains  at  ;£J'2oo,ooo,  and 
the  company's  financial  position  is  as  strong  as  could 
be  desired.  Loans  on  mortgages  ha\e  been  reduced  by 
;^83,ooo  to  ^'1,595,000,  but  securities  are  up  _;^"2 1,000 
at  ;^282,ooo,  and  cash  has  increased  ^^45,000  to 
;£J'96,4oo.  We  regret  to  note  the  death  of  Mr.  James 
Hora,  the  founder  of  the  company  in  i860.  How  time 
flies  ! 


"  Everybody's  doing  .it,"  and  .so  the  directors  of 
Bryant  and  May,  Ltd.,  are  asking  for  powers  to  capi- 
talise the  wihole  or  part  of  the  reserves  and  undivided 
profits  with  a  view  to  their  distribution  in  the  shape  of 
fully-paid  shares.  Wihen  the  company  came  under  the 
domination  of  the  Diamond  Match  Co.  some  years  ago 
quite  a  cupful  of  water  was  pumped  into  the  capital, 
and  now  the  process  is  to  be  carried  a  step  farther — a 
prudent  move,  doubtless,  in  these  days  of  match  famine 
and  huge  profits,  but  we  hope  the  poor  match-box 
makers  are  getting  a  'bit  out  of  them.  For  the  year 
to  March  31  gross  profits  showed  a  decrease  of 
;£,72,ooo  at  ;^\343,4C)o,  but  for  a  wonder  expenses  were 
;^25,ooo  less,  and  only  ;£^i,ioo,  again.st  ^11,000,  was 
contributed  to  the  Brymay  pension  fund,  while  nothing, 
as  against  ;^"30,ooo,  has  to  be  allowed  for  depreciation 
of  invesitmenits.  Consequently  the  regular  14  per 
cent,  is  paid  on  the  preference  (the  old  ordinary)  shares, 
and  12  per  cent.,  tax  free,  on  the  new  ordiniary  after 
writing  ;^25,ooo  off  plant,  goodwill,  &c.,  and  the 
balance  forward  is  reduced  by  ^13,000  to  ;^i4,240. 
The  busiiness  is  nominally  controlled  by  the  Tobacco 
and  Matches  Control  Board,  but  we  have  never  been 
able  to  discover  anyone  who  was  a  lucifer  to  the  good 
for  it. 


\\  hen  allowance  is  made  for  the  fact  that  excess 
duty  has  now  to  be  allowed  for  at  the  rate  of  80  per 
cent,  against  60.  the  results  of  Bell's  Asbestos  Co.. 
Ltd.,  for  last  year  are  better  than  they  appear  on  the 
surface.  Nett  profits  amounted  to  ^^40,300,  a  de- 
crease of  ;£;4,5oo,  but  by  reducing  the  allocation  to 
reserve  from  p£:20,ooo  to  ^'15.000,  it  is  possible  to  re- 
peat the  dividend  and  bonus  of  15  per  cent.,  and  to 
carry  forward  a  rather  larger  balance  at  £S,<j8o.  It 
should  be  noted,  however,  that  pt'iyiSoo  has  been 
written  off  investments  to  bring  them  down  to  market 
value  as  at  December  31.  Last  year  they  figured  at 
^^70,620,  and  the  list  is  the  same  this  time,  with  the 
;iddition  of  ;£^5,c)oo  of  5  per  cent.  War  Loan  stock,  but 
the  total  valuation  is  reduced  to  ;£,"6o,  100.  Nothing 
else  in  the  balance-sheet  calls  for  remark,  the  changes 
being  comparatively  trifling,  but  the  report  mentions 
that  operations  at  the  factory  have  been  interrupted 
through  the  shortage  of  labour  and  the  difficulties  of 
obtaining  supplies  of  raw  material  from  overseas.  Of 
course,  the  company  is  a  "  controlled  ''  establishment, 
and  its  private  business  is,  practically  sjseaking,  in 
abeyance  for  the  time  being,  but  new  lines  are  being 
developed  which  will  prove  most  profitable  in  the 
future. 


Conditions  were  not  very  propitious  for  the  San 
Paulo  (Brazilian)  Railway  Co.,  Ltd.,  last  year,  but 
thanks  to  an  improvement  in  the  exchange  net  results 
were  better  than  would  have  been  the  case  otherwise. 
On  the  main  line  gross  receipts  amounted  to 
Rs.  29,686,000,  a  decrease  of  R's.  52,800,  but  the 
equivalent  in  sterling  was  ;^i,6i7,700,  an  increase  of 
;£,"i2o,ooo,  the  average  rate  of  exchange  being  i3.o78d. 
against  i2.o85d.  Expenses  amounted  to  ^1,115,700, 
an  increase  of  ;^^i30,ooo,  and  the  ratio  to  receipts  rose 
from  65.78  per  cent,  to  68.96.  Nett  revenue  came  out 
at  _;^'502,ooo,  a  decrease  of  ;£'io,300,  and  on  the 
Bragantina  branch  the  nett  receipts  were  ;^6,500,  a 
decrease  of  ;^'6,200,  but  this  was  offset  by  an  equivalent 
increase  in  interest  which  amounted  to  ;^54,6oo.  The 
amount  brought  in  was  ;^87,ooo  less  at  ^198,100,  but 
a  year  ago  ;^84, 100  had  to  be  set  aside  for  depreciation 
of  investments,  and  no  similar  appropriation  has  to  be 
made  on  this  occasion.  Consequently  it  is  possible  to 
repeat  the  dividend  of  10  percent,  on  the  ordinary  stock, 
and  to  carry  forward  3£r20,ooo  less  at  ;^' 178,600.  Pas- 
sengers increased  41,000,  and  the  goods  traffic  rose 
153,800  tons,  but  for  the  current  year  the  coffee  crop 
is  estimated  at  only  9,500,000  bags  (570,000  tons), 
against  12,000,000  bags  (720,000  tons)  last  year.  The 
ainount  actually  carried  in  1917  was  692,700  tons,  a 
decrease  of  11,200  tons,  but  there  was  a  substantial  im- 
provement in  the  traffic  in  building  materials.  No  doubt 
owing  to  the  difficulty  of  obtaining  necessary  supplies 
maintenance  of  way  was  cut  down  ;(^22,ooo,  but  locomo- 
tive power  cost  ;^i  10,000  more,  carriage  and  wagon 
repairs  ^21,000  more,  and  traffic  expenses  ;^34,ooo 
more,  but,  on  the  whole,  the  company  has  come  through 


I 


STANDARD  BANK  OF  SOUTH  AFRICA,  r 


Subscribed  Capital 
Paid-up  Capital... 


Bankers  to  the  Government  of  the  Unioa  of  South  Africa  in  Cape  Province;   t"  the  Imperial  Government  in  South  Africa  aniito  the  Administration 

of  Rhodpsii. 

£6,194,100     I     Reserve  Fund     £2,000,000 

£1,548,525     |     Uncalled  Capital  ...    £4,645,575 

Board      of      Directors. 

WM.   REIERSON  ARRUTHNOT,  Fsq.  I      JAME-  FAIKBAIKN  FINLAY,  Esq.,  C.S.I.  1      Rt.  Hon.  LORD  SYDENHAM,  G. C.S.I. , 

SIRDAVIDM.BARBOUR,K.C.S.I.,K.C.M.G.  HORACE  PKEL.  Esq.  G.C.M.G.,  G.C.I  E.,  GB.E. 

ROBERT  E.  DICKINSON,  Esq.  j      WILLIAM  SMART,  Fsq^ I      H.  L.  M.  TRITTON,  Esq. 

Hoad  Offices   TO  GLEMEMTS  LANE,  LOMBARD  STREET,  LONDON,  E.C.  4. 

New  York  Agency:— 68,  WALL  STREET,    Over  250  Branches  and  Agencies  in  South  and  East  Africa. 


BANKING  BUSINESS  OF   EVERY  DESCRIPTION  transacted  at 

all  Br  nclies  and  Agencies. 
CURRFNT  ACCOUNTS  opened  on  the  U5ual  terms,  and  DEPOSITS 

RECEIVED  for  fixed  per;ods  at  rates  which  may  be  ascertained  on 

anp'i'-ation. 
SAVINGS  BANK  ACCOUNTS  opened  on  terms,  particulars  of  which 

may  be  nb'.Ti   eH  at  liranches. 
BILLS  NEGOTIATED  and  COLLECTED. 

DRAFTS  issued,  MA",  and  TELEGRAPHIC  REMITTANCES  ma  e. 
LETTERS  OF  CREDIT  and  COMMERCIAL  CREDITS  esrablished. 


Ti^e  'officers  0/  the  "a»A  are  bound  not  to  disclose  the  Irwisactions  of  any  of  its  customers. 


TRAVEI  LER'S  LETTERS  OF  CREDIT  issued  available  in  all  parts 
of  the  world. 

PURCHASE  AND  SALE  of  Slocks  and  Shares  eSfecled. 

DIVIDENDS,  ANNUITIES.  Ac,  received  and  COUPONS  COL- 
LECTED 

STRONG  ROOMS  provided  for  the  safe  custody  of  Securities  and 
Valnab'es  of  ("nstom*  rs. 

ASSAY  DEPARTMENT- GoM,  etc.,  and  all  Mineral  Ores  assayed 
and  realised. 

EXFCUTOR  AND  TRUSTEE  Business  undertaken. 


FRANCIS  SHIPTON,  Lanlon  Matmeer. 


456 


^be  Jnvestore'  IRevtew. 


Mav  II,  1918. 


a  trying  period  better  than  might  have  been  expected. 
This  year's  short  coffee  crop,  however,  will  inevitably 
reduce  receipts,  but '  compensation  may  again  be 
obtained  from  the  rate  of  exchange. 

Important  amendments  have  been  made  to  the 
Transvaal  Mining  Leases  Bill  by  the  Select  Committee 
of  the  Union  Parliament.  The  minimum  scale  of 
royalties  to  be  offered  in  applications  for  leases  of 
ground  adjoining  a  selected  mynpacht  has  been  sub- 
stantially reduced,  and  in  the  case  of  profit  ratios 
below  25  per  cent,  of  the  gold  recovery  the  new  mini- 
mum is  about  one-half  of  the  original  amount  fixed. 
At  a  25  per  cent,  ratio  of  profit  to  recovery,  the  Union 
Government  will  get  19  per  cent,  of  the  profits;  at  a 
30  per  cent  ratio,  26  per  cent. ;  at  a  40  per  cent,  ratio, 
38  per  cent.  ;  and  at  a  50  per  cent,  ratio,  45  per  cent, 
of  the  profits  go  to  the  Government.  Another  im- 
portant provision  is  that  a  leaseholder,  in  marking  out 
his  mynpacht,  will  be  restricted  to  one  area  instead  of 
two,  as  allowed  under  the  existing  Gold  Law.  A 
clause  has  also  been  added  to  the  Bill,  with  the  laud- 
able, but,  we  are  afraid,  impracticable,  object  of  pre- 
venting directors,  controllers,  and  employees  of  mines 
from  using  information  in  the  share  market  prior  to  its 
disclosure  to  the  public.  Shareholders  suffer-ng  from 
this  practice  are  to  be  entitled  to  sue  the  offenders  for 
the  recovery  of  any  pecuniary  loss  they  may  incur 
thereby.  The  Bill  passed  its  third  reading  on  Satur- 
day last.  When  it  becomes  an  Act,  it  will  represent 
the  most  important  piece  of  legislation  affecting  the 
gold-mining  industry  which  has  been  enacted  for  many 
years  past.  It  is  expected  greatly  to  stimulate  the 
exploitation  of  the  virgin  areas  on  the  Far  Eastern 
Rand,  which  has  hitherto  been  held  up  owing  to  the 
fact  that  ex'isting  areas  are  too  small  to  be  economically 
worked. 


The  output  of  the  Globe  and  Phienix  Gold  Mining  Co. 
in  1917  was  ;^403.37i,  against  ^"415,425  in  1916,  which 
bnngs  the  aggregate  production  up  to  ^5, 324, 513  since 
the  mine  was  first  discovered.  The  nett  profit,  after 
bringing  in  ^-4,767,  and  including  ;^54,5oo  brought 
from  the  reserve,  amounts  to  ^^'288,013.  For  1916  the 
nett  profit  was  ^^164,767,  which  included  ;£"6,o62 
brought  in,  but  in  striking  this  figure  £s3A7^  "^as 
written  off  on  account  of  litigation  expenses.  A  final 
dividend  of  is.  4d.  per  share,  less  tax,  is  proposed, 
makmg  a  total  of  6s.  8d.  per  share  for  the  year,  without 
taking  into  account  the  distribution  out  of  reserve  of 
IS.  6d.  per  share  made  on  May  15  last.  ITiis  dividend 
compares  with  4s  for  1916.  The  increase  in  the  revenue 
IS  due  to  the  inclusion  of  ;£,"70,iS9  received  in  costs  from 
the  Amalgamated  Properties  of  Rhodesia,  and  also  to 
the  fact  that  only  ;^8,783  was  spent  in  connection  with 
the  litigation,  as  against  ;^53,47i  last  year.  Working 
costs,  of  course,  were  on  a  higher  scale.  The  ore  re- 
serves have  been  increased  from  173,981  tons  to  184,053 
tons,  the  value  being  ;^39,453  higher  at  ;^i, 119,111.  A 
recent  discovery  on  the  property  recalls  the  experience 
of  the  Mount  Morgan  Mine,  which,  after  having  pro- 
duced an  enormous  amount  of  gold,  has  become  one  of 
the  principal  copper  mines.  The  Globe  and  Phoenix  has 
discovered  some  copper-bearing  areas  in  the  immediate 
vicinity  of  its  mine,  and  development  work  has  given 
such  encouraging  results  that  it  is  intended  to  continue 
the  exploitation  of  the  areas. 


In  another  column  we  give  the  Admiralty  figures  and  the  ton- 
nage of  merriiant  vessels  completed  in  home  yards,  and  also  the 
tonnage  built  in  Allied  and  neutral  yards  during  the  first  quarter 
of  the  current  year.  The  figures  give  the  gross  tonnage,  which 
II  ''^  "'■',*'^'>  method  of  reckoning:  but  it  is  pointed  out  in 
the  ofhcal  statement  that  the  United  States  and  some  other 
countries  give  dead  weight  tons,  a  much  higher  figure,  which 
should  be  remembered  in  making  comparisons.  It  will  be 
seen  that  for  the  first  quarter  our  figures  are  dis.apoointin?-. 
only  432,000  tons  in  four  months,  or  17^,000  tons  short  of  their 
proportion  of  the  promised  output  of  1,800,000  in  the  year— but 
the  explanation  is  offered  that  a  great  deal  of  the  resources  in  the 
yards  has  been  devoted  to  repairs  of  already  existing  vessels,  and 
we  are  promised  that  the  next  display  will  be  very  much  better. 
Do  the  ships  completely  repaired  add  to  the  available  tonnage' 


Advertising  "Stunts"  and  the  Nation's 
Financial  Necessities. 

More  and  more  disappointing  grow  the  .sales  of 
National  War  Bonds.  Of  the  Bank  of  England  series 
the  .sales  last  week  were  only  ;^'9,i  14,196,  or 
;^"5, 193,000  less  than  in  the  preceding  week.  There 
were,  in  fact,  only  8,716  applicants,  a  decrease  of 
1,230.  The  total  number  of  applicants  to  date  is 
now  only  brought  up  to  571,073,  and  the  amount 
applied  for  to  ;6679i255,366.  And  the  total  expendi- 
ture on  supply  alone  up  to  last  Saturday,  the  first 
five  weeks  of  the  fiscal  year,  was  ;^244, 229,000,  and 
the  total  receipts  from  National  War  Bonds  of  both 
denominations  ;^"79,ooo,ooo.  Up  to  the*  end  of  the 
previous  week — that  is  to  say,  to  Saturday,  April  27 
— the  sales  of  the  Post  Office  series  of  National  War 
Bonds  had  only  produced  ;^27,688,38o  from  the  begin- 
ning all  told.  The  applications  for  the  week  then 
ended  numbered  only  21,183,  or  14,217  less  than  the 
previous  week,  and  the  amount  applied  for  was  nearly 
halved  at  ^510,980,  or  a  decrease  of  ;£'4i7,470.  A 
further  decline  also  took  place  in  the  sales  of  War 
Savings  certificates,  which  for  the  same  week  ended 
April  27  numbered  only  2,704,148,  raising  the  aggre- 
gate sold  to  that  date  to  189,069,504.  In  money,  these 
certificates  contributed  to  the  expenditure  of  the  week 
slightly  less  than  ;^'2, 100,000,  and  the  total  receipts 
thus  far  have  been  only  ^^i 46,529,000. 

This  moist  be  considered  a  depressing  exhibit  viewed 
in  the  light  of  our  tremendous  necessities,  and  every 
week  the  condition  of  the  Treasury  becomes  more  un- 
satisfactory. It  is  in  a  dependent-on-chances  position. 
The  Government  refuses  to  entertain  the  idea  of  creat- 
ing and  putting  up  for  sale  successive  series  of  pre- 
mium or' bonus  bonds,  arranged  with  actuarial  pre- 
cision and  perfectly  equitable,  but  it  does  not  think  it 
beneath  its  dignity  or  derogatory  to  the  honour  of  the 
nation  to  fill  the  papers  day  by  day  and  week  by  week 
with  adverli.seinents  modelled  upon  the  style  wJiich  was 
popularised  here  by  Messrs.  Hooper  and  Jack.son,  those 
clever  Yankee  gentlemen  who  foisted  upon  the  British 
public  many  tons  of  a  stale  edition  of  the  "  Encyclo- 
pedia Britannica." 

We  have  one  of  tihese  advertisements  before  us  at 
this  moment,  and  the  large  letters  are  deftly  arranged 
to  catch  the  eye: — "Three  Years  Ago  To-day." 
"  Remem.I>er  and  Act."  "  Buy  National  War  Bonds." 
These  are  the  prominent  lines,  but  around  their  eye- 
hitting  letters  we  get  a  picture  of  the  German  Lusi- 
tania  medal,  showing  a  ship  going  down  in  the 
w'aves,  cliche  reductions  of  a  Cunard  advertisement 
of  the  Lusitauia  date  of  sailing  and  the  warning  to 
passengers  issued  by  the  German  Embassy  in  Wash- 
ington. Accompanyiing  these  sid<?-sihows,  in  larger 
type  and  in  language  meant  to  move  the  reader,  re- 
calling the  horrors  of  the  crime  by  which  nearly  1,400 
innocent  lives  were  lo.sit,  is  choice  advertisement  com- 
piler's eloquence  frothed  up  to  enforce  the  duty  of  sub- 
scribing for  National  War  Bonds.  "  Try  not  to  let 
a  day  pass  w-ithout  saving  something — even  if  it  onlv 
be  a  few  shillings,"  the  scribe  counsels,  and  the  advice 
is  excellent,  provided  the  money  is  put  into  War  Bonds. 
"  Do  not  wait,  the  money  is  needed  now,"  the  sum- 
mons is,  and  it  is  explained  that  "  your  interest  and 
capital  are  guaranteed  by  the  State."  You  get  5  per 
cent,  interest  each  year,  and  after  five,  seven,  or  ten 
years,  as  you  please,  "  your  money  will  be  repaid  with 
a  premium."  Beautifully  put,  and  seemingly  as  inane 
for  the  purpose  aimed  at  as  an  abstract  discourse  on 
tJie  moral  excellence  of  thrift  by  a  German  professor. 
These  be  the  methods  of  the  "  stuntist,"  the  manufac- 
turer of  "  scoops,"  "  sensations,"  "  greatest  sales," 
and  the  British  Governonent  is — what  is  it  not? 

The  result,  as  any  man  of  sense  could  have  foretold, 
is  a  steady  decline  in  the  sales  and  in  the  money  pro- 
vided thereby.  People  grow  we.iry  and  disgusted  with 
the  provender  of  falsetto  sentiment  and  churned-up 
patriotism.  Obviously  some  other  device  than  the 
patent  method  of  Hooper  and  Jackson  will  have  to  be 
lighted  tipon    if   the  Government    is  not  to    land    the 


May  II,   1918. 


Zbc  Jnvestore'  IReview. 


457 


finances  of  the  country  in  a  mess  which  might  easily 
become  inextricable  by  any  device  assuming  solvency. 

Look  at  last  week.  In  the  matter  of  revenue  it  was 
by  way  of  being  a  good  week,  for  the  income  from  taxa- 
tion was  ^"i 5,01 5,000,  because  a  lapful  of  no  less  than 
;^9, 148,000  was  received  from  excess  profits  tax,  or 
nearly  double  the  receipts  of  the  preceding  week.  But 
the  whole  ;^"  15,000,000  was  but  a  fragment  of  the  Trea- 
sury requirements  for  the  week.  Supply  services  alone 
took  ^54,224,000,  or  ^7,746,000  a  day,  and  the  total 
outgoings  on  supply,  war  debt  interest,  and  miscel- 
laneous was  ;£55, 1 78,000,  or  nearly  ;^8,ooo,ooo  a  day. 
As  at  the  same  time  ^82,870,000  due  on  supply  Trea- 
sury bills  fell  to  be  repaid,  as  well  as  other  minor  items 
of  account,  such  as  ;^2,889,ooo  of  War  Loan  and  Ex- 
chequer bonds  and  ;^3, 147,000  of  due  temporary  ad- 
vances, the  total  outgoings  of  the  week  under  all  heads 
rose  to  ;6"i44,237,ooo. 

The  Treasury,  however,  in  spite  of  ;^i2, 596,000  ob- 
tained from  National  War  Bond  sales,  and  ;^9, 71 7,000 
received  from  "other"  debt  sources,  as  well  as 
^'i, 000,000  from  National  War  .Savings  Certificates 
and  ^"795-000  representing  3  per  cent.  Exchequer 
bonds  issued  against  the  Russian  Treasury  bills,  liability 
for  which  was  taken  over  by  our  Government,  had  to 
issue  for  supply  Treasury  bills  to  the  amount  of 
;^"87,287,ooo,  and  ;^i 5,000,000  was  borrowed  from  the 
Bank  on  Ways  and  Means  account.  Even  so,  the 
available  credit  was  short  by  ^2,707,000.  By  that 
sum,  therefore,  the  Exchequer  balances  were  reduced, 
and  are  now  down  to  ;^i4,853,ooo.  A  year  ago  their 
total  was  ;^23, 153,000. 

Is  the  Treasury  going  to  wait  until  there  is  no  balance 
at  all  visible  on  its  current  account?  The  Treasury 
bills  floating  liability  continues  to  mount,  so  that  the 
total  swimming  on  the  market  is  now  ;^958, 135,000,  or 
;^4, 412,000  more  than  in  the  previo;is  week,  and,  apart 
from  the  hazards  surrounding  it,  this  huge  floating  debt 
involves  a  heavy  Cfxpenditure  to  keep  it  circulating. 
Since  this  fiscal  year  began  ;£^42 1,366,000  of  Treasury 
bills  has  been  issued  and  discounted,  and  ;^436, 078,000 
of  I'il's  due  has  been  cancelled  and  repaid.  This  shows 
a  reduction  of  less  than  ;^i  5,000,000,  for  all  the  National 
War  Bond  "stunting"  and  "booming."  More- 
over, and  worst  of  all,  since  the  current  fiscal  year  began 
about  /?84, 500,000  has  been  added  to  the  "  Ways  and 
Means  "  floating  debt,  the  most  treacherous  and  incom- 
moding of  all  forms  of  debt.  How  long  can  the 
market,  loyally  eager  as  it  is  to  do  everything  to  help  in 
finandng  the  war,  carry  all  this  mass  of  formless  debt 
without  flinching?  What  hope  is  there  that  the 
Government  could  issue  another  large  funding  loan 
now?  It  is  about  time  amateurs  and  dilettantes  gave 
way  to  men  who  know,  and  who  have  the  courage  to 
act  without  regard  to  hypocrites — for  we  have  to  finish 
this  war  successfully  at  all  costs. 


By-the-Way  War  Notes. 

Another  week  has  passed  without  any  great  sensation  in 
the  way  of  large  attacks  by  the  besieged  Germans  upon  the 
Allied  lines  in  the  West.  It  has  not  been  an  idle  week  by  any 
means,  nor  a  week  devoid  of  wholesale  murder,  as  our  casualty 
lists  only  too  sia:nificantly  testify,  but  except  for  the  attempt 
made  in  the  middle  of  the  week  to  get  behind  Ypres  from  the 
south,  and  force  us  to  evacuate  that  dangerous  salient,  there 
has  been  no  tremendous  fighting  on  a  large  scale.  In  Palestine, 
however,  General  Allenby  has  been  compelled  to  withdraw  most 
of  his  troops  from  the  Moabite  side  of  the  Jordan,  German 
reinforcements  having  joined  the  Turks.  On  the  other  hand, 
General  Marshall  continues  to  worm  his  way  north-westward 
from  ]5asrdad,  and  is  now  within  80  miles  of  Mosul.  Thus  the 
chequered  fortunes  of  war  continue  to  play  now  for,  now 
against  the  Allies  in  this  or  that  section  of  the  field.  The  sum 
of  it  all,  however,  is  that  we  are  surely  winning.  By  patience, 
by  dogeed  perseverance  in  continually  harassing  the  enemy,  by 
destroying  his  artillery,  by  blowing  up  his  ammunition  dumps, 
wrecking  his  train  and  stations,  damaging  his  lines  of  com- 
munication wherever  we  can,  we  are  bringing  him  to  im- 
potence. We  mean  to  hold  out  the  loneest,  and  will  do  so  with- 
out a  doubt    unless  betrayed  from  within. 

Let  us  never  forcret  what  is  at  stake — a  world's  freedom.  We 
read  of  great  artillery  activity  at  this  point  and  the  other  on 
the  front,  and  if  we  give  any  thought  at  all  to  it,  we  think  of 
h  as  a  firework  display.  It  is  far  more;  it  is  the  expenditure 
of  energy  which  wins  the  war.  This  is  a  scientific  war,  and 
there   i.s  a  definite  purpose  behind  every  shot  fired.     That   is 


true  of  both  sides,  and  explains  the  tenacity  and  effectiveness 
of  the  German  resistance.  Hut  our  artillery  now  more  and 
more  has  the  mastery.  In  the  air  we  are  supreme,  and  now 
only  wait  for  the  fine  weather  tc  make  that  supremacy  patent 

In  the  absence,  however,  of  the  sen3ati<;n3  produced  by  great 
masses  in  assault,  with  abundant  slaughter,  such  as  the  public 
mind  thinks  it  understands  the  meaning  of,  attention  has  been 
given  rather  by  the  observant  to  the  state  of  affairs  within  the 
doomed  empires.  It  becomes  every  day  more  evident  that  their 
population  is  approaching  a  crisis  in  their  existence— a  crisis 
of  want— such  as  probably  the  world  has  never  before  witnessed 
Famine  is  eating  out  the  heart  of  the  peoples  of  Austria  and 
Hungary  at  this  hour,  and  it  is  kno.king  at  the  door  of  every 
household  within  the  HohenzoUern  Empire  as  well.  Of  that 
there  can  be  no  doubt  whatever,  and  if  the  hand  of  the  Prussian 
brute  was  taken  off  the  German  Press,  we  should  soon  have 
enough  evidence  to  satisfy  us  that  the  victory  of  the  Allies  is 
already  indeed  great,  so  great  that  merely  by  sitting  still  and 
holding  on  we  are  now  certain  to  destroy  the  tyrannous  im- 
postors, both  Ilabsburg  and  HohenEollern.  Where  are  the 
people  of  these  countries  to  get  food  ?  Their  manhood  has  been 
eaten  up  in  war,  so  that  their  lands  cannot  be  tilled  as  usual, 
nor  have  they  been  fertilised,  so  as  to  keep  the  usual  fertility. 
Consequently  the  crops  each  year  diminish,  and  this  year  will 
in  all  probability  be  worse  than  ever.  That  tjiis  consummation 
is  dreaded  the  terms  of  the  Rumanian  peace  treaty  proves,  its 
most  accentuated  note  being  the  provision  securing  for  Ger- 
many and  her  allies  all  the  Rumanian  grain  crops  for  the  next 
two  years.  Russia  is  being  scoured  for  corn,  which 
is  not  forthcoming.  A  certain  quantity,  not  enough 
to  relieve  the  Germans'  hunger  for  long,  might  have 
been  secured  by  blandishments,  by  cajolery,  but  the 
Prussian-trained  German  .serf  does  jiot  understand  smooth 
ways.  He  uses  the  bayonet  and  shooting-iron  instead  of  kindly 
speech,  and  tries  to  extract  by  threats  and  terrorising  crimes 
the  grain  the  peasants  refuse  to  part  with.  Naturally,  there- 
fore, the  supply  is  not  nearly  suflScient,  and  without  Russian 
corn  the  bulk  of  the  population  of  Germany  stands  confronted. 
with  the  probability  of  absolute  want  this  summer. 

Already  the  punishment  for  their  crimes  has  begun.  The 
more  they  wander  hither  and  thither  on  the  earth,  the  greater 
becomes  the  desolation.  Shells  and  poison  gas  are  not  gocxi 
fertilisers,  never  will  be.  Out  of  this  devil-prompted  conflict 
which  the  Germans  have  brought  upon  the  world  will  arise 
an  agony  of  want  throughout  the  world,  and  especially  within 
the  criminal  empires,  which  may  sweep  away  half  the  popula- 
tion. 

Austria  has  other  difficulties  besides  those  originating  in 
the  hunger  of  the  people.  Hunger  has  stimulated  and  extended 
race  cleavages,  and  Emperor  Charles  now  finds  himself  sur- 
rounded by  a  seething  crowd  of  malcontents  composed  of 
nationalities  that  have  become  conscious  of  the  opportunity  the 
empire's  troubles  are  giving  them  to  secure  their  freedom. 
In  vain  does  the  Austrian  Prime  Minister  send  the  Reichsrat 
about  its  business,  and  equally  in  vain  does  the  Administra- 
tion re-parcel  out  the  provinces  of  the  empire  m  order  to  try 
and  still  the  clamours.  To  all  appearance,  the  Austrian  Empire 
will  founder  amid  dismemberment,  and  dismemberment  is 
being  .speeded  up  by  the  very  efforts  made  to  re-arrange  and 
patch  up  a  semblance  of  unity. 

Will  not  that  also  be  gain  for  the  world's  peace,  a  proof 
that  our  victory,  long  postponed  though  it  seems  to  be,  is  much 
more  far-reaching  in  its  consequences  than  it  looks  to  be  on 
the  surface.  As  we  fight  on,  a  new  foundation  is  being  laid 
on  which  the  civilisation  of  the  world  may  rear  a  nobler  struc- 
ture of  liberty  than  any  palace  of  the  tyrant  or  shrine  of  the 
simulated-devout   ever  has  been  or  ever  could  be. 

We  miss  the  weekly  return  of  ships  .sunk,  and  think  it  ought 
to  be  resumed.  It  is  quite  right  that  we  should  have  informa- 
tion as  to  the  tonnage  lost  every  month,  but  if  the  nation  is 
to  be  kept  awake  to  its  danger  and  in  touch  with  the  progress 
of  the  war,  then  the  weekly  return  of  ships  lost  by  submarine 
ought  to  b;  resumed  and  improved. 

COMPANY    RESULTS    IN     BRIEF. 


Name  and 

Accounting 

Period. 


American  Trust  ....(fan.) 

Do.      Prev. 

Augusta  TeaEsates  (Dec.) 

Do Prev. 

Brampton  Brewery  (Mar.) 

Do Prev. 

Brandon's  Putney  Brewery 
(Dec.) 

Do Prev 

Montevideo  Gas. . . .  (Dec  ) 

Do Prev. 

North    of  Scotland    Elec 
Light  and  PowerfDec.) 

Do Prev. 

Pacific   Loin  and   Invest- 
ment   (Dec.) 

Do Prev. 

Star  Paper  Mill. ..(J  April) 
Do Prev. 


Gross 
Profit. 


iq.6io 

16,370 

770 

940 


40,920 

60.950 

169,740 

171,260 

6,640 
7.550 

78,400 

78,600 

413.230 

260,390 


Nett 
Profit. 


Total 
Re- 
serves. 


£ 

15.670 
16,370 
60 
280 
51.510 
34.420 

21,080 
33440 
19.160 
26,6701 


I 


6,2CO 

6,670 

33.400 

36.570 

18.490 
15,810 


12,000 
12,000 


105,000 
105,000 

50  000 
50,000 
32,000 
32,000 

4,000 
3.000 

130,000 

125,000 

40.000 

20,000 


Divi- 
dend. 


% 
4 
4 


20 
15 

10 

7i 

3 

3 

3 
3 

9 

9 
15 
10 


Carried 

For- 
ward. 


£ 
6,660 

5.470 

410 

600 

58.200 

34.770 

38,160 
29,320 
17,670 
14,690 

1.700 
2,173 

14.540 
15.430 
35.950 
38.440 


458 


Zbe  Silvesters'  IRevtevv. 


May 


1918. 


NORWICH  UNION 

MUTUAL    LIFE    OFFICE 

because  of    its 
AGE  —  MAGNITUDE  —  RESERVE       STRENGTH 
—  PROFIT    YIELD  —  ALERTNESS,    &     ECONOMY 

The  Outstanding 
British 
Life  Office 

Wiili    or  I'rosfectui  to  the  Secretary, 

NORWICH    UNION    LIFE    OFFICE,    NORWICH, 

or  to  any  Branch  Office  0/  tfie  Society. 


THE  LIVERPOOL   &  LONDON  &  GLOBE 

INSURANCE    CO.,    LTD. 

FIRE.        LlrE.        AGCIUEN  T.        MARINE. 
Total  Assets  exceed     -       •       -    £14,800,000 
Total  Claims  Paid  over      -       -    £86,000,000 


Head  Office: 
1,  Dale  Street,   i  iverpool. 


London  Chief  Office: 
1,  Cornhiil,   E.G.  3. 


In  these  days,  when  wide  circulation  of  papers 
through  the  post  is  impossible,  we  rely  on  news- 
paper advertisement  to  remmd  our  friends  that  we 
look  to  them  to  do  what  they  can  to  make  the 
merits  of  the  Society  known  in  their  own  circles. 

The  Clerical's  strong  2\  per  cent.  Valuation, 
unbroken  Bonus  record,  and  attractive  rates  of 
premium,  carry  great  weight  with  everyone  who 
is  selecting  an  office  in  which  to  assure  his  life 
in  these  hazardous  times.  —  A.  D.  Besant, 
General  Manager  and  Actuary,  Clerical,  Medical 

and  General  Life  Assurance  Society.    13,   St. 

James's  Square,  S.W.  1 ,  London. 


Hbe  l^nv?e8tors'  1Rev?ievv. 

Money    and   Credit    Notes. 

Bank  Rate  5  per  Cent.   (Reduced  from  5^  per  cent,  on 
Thursday,  April  5,  19x7.) 

Norfolk  House,  Friday  Evening, 
Early  in  the  woek  money  was  abundant  enough  to  bring  the 
day-to-day  rate  down  to  2  per  cent,  sometimes,  after  one  o'clock. 
The  usual  quotation  was  2j4  to  3  per  cent.  Towards  the  end  of 
the  week,  however,  the  supplies  of  credit  seemed  to  become  less 
oppressive,  and,  in  market  colloquialism,  money  was  more  usable. 
Discount  rates  have  remained  the  same  throughout  with  scarcely 
a  shade  of  fluctuation,  but  June  Treasury  bills  were  in  good  re- 
quest generally  speaking  at  y^  per  cent.,  and  commercial  bills 
have  been  in  request  at  a  shade  under  3J4  per  cent.  Seven-day 
money  was  throughout  3%  per  cent. 

The  Bank  return  showed  a  large  decrease  of  ;fg, 522,000  in 
other  deposits.  This  was  due  principally  to  a  decrease  of 
./'5, 452,000  in  the  other  securities,  and  to  ^^3, 200,000  added  to 
the  public  deposits.  The  reserve  is  down  ^^239, 000  owing  to  an 
increase  of  ^244,000  in  the  note  circulation,  and  a  decline  of 
about  ;f5,ooo  in  coin  and  bullion,  but  as  the  liabilities  are  much 
more  heavily  down,  the  proportion  is  actually  yi  per  cent,  higher 
at  i&%  per  cent. 

Owing  to  the  early  hour  at  which  we  have  to  go  to  press^  we 
missed  last  week  the  import.inf  news  that  Sir  Gordon  Naifne, 
Bart.,  who  has  been  chief  cashier  at  the  Bank  of  England  since 
if)o2,  has  been  raised  to  the  position  of  "  Comptroller  "  of  the 
Bank.  That  is  to  say,  this  able  and  eminently  judicious 
banker  has  now  become  general  manager  of  the  Bank  of  Eng- 
land. That  fact  deserves  emphasis,  because  it  represents  a 
turning-point  or  landmark  in  the  history  of  the  Bank.  For 
more  than  200  years  the  constitution  of  its  court  and  the  sub- 
division of  its  executive  functions  have  been  fixed,  so  that  the 
real  power,  the  only  initiative,  has  always  rested  in  the  hands 
of  the  Governor.  This  has  involved  frequent  changes  in  policy 
and  an  absence  of  continuity  of  touch  with  the  Money  market 
which,  altliough  well  kept  in  check  by  traditions  and  routine, 
became  more  emphasised  in  its  inconveniences  the  larger  the 
outside  market  grew.  A  Governor  stepped  into  "the  chair  for 
two  years  after  having  served  his  apprenticeship  as  Deputy- 
Governor  for  a  like  period,  and  once  his  two  years  were  ended 
he  fell  back  into  the  body  of  the  Bank  court  of  directors.  While 
he  was  in  the  chair  he  was  a  despot,  and  the  wonder  is  that 


friction  did  not  arise  more  frequently  between  the  market  and 
the  Bank  Governor  than  it  has  done.  For  long  it  has  been 
felt  that  a  change  should  be  made  in  the  direction  of  providing 
for  a  continuous  management,  and,  as  we  intimated  months 
ago,  it  was  decided  that  it  should  take  place  now.  It  is 
officially  announced  to-day  that  Mr.  Ernest  Harvey,  C.H.E., 
who  has  been  deputy-cashier  ever  since  Sir  Gordon  Nairne  was 
appointed  chief  in  1902,  is  to  be  the  new  chief  cashier,  and 
will  be  succeeded  as  deputy  by  Mr.  C.  Tasker  Paice,  who  has 
been  deputy-principal  in  the  discount  office  of  the  Bank,  and 
Mr.  Mohan  has  been  appointed  assistant  deputy-ci.shiei. 
Various  sub-divisions  of  the  Bank's  service  are  thus  apparently 
to  be  maintained  for  the  present,  but  under  a  general  manager 
whose  presence  will  give  coherence  and  continuity  to  the  policy 
of  the  Bank.  His  ComptroUership  will  doubtless  embrace  the 
branches  of  the  Bank,  heretofore  in  the  exclusive  control  of 
the  directors. 

The  United  Kingdom  now  owes  ;^759,ooo,ooo  to  the  United 
States,  a  further  loan  of  /i 5,000,000  having  been  granted  to 
us  this  week. 

The  raising  of  the  rate  of  income-tax  has  rendered  War 
Savings  certificates  more  attractive  still  as  an  investment. 
These  certificates  are  exempt  from  taxation,  and  the  return 
works  out  at  ^^5  i6s.  id.  per  cent,  in  simple  interest  and 
£^  4s.  yd.  per  cent,  in  compound  interest,  nett,  of  course,  in 
both  cases.  In  order  to  obtain  in  simple  interest  a  nett  return 
of  £cj  i6s.  id.  per  cent,  from  any  security  which  is  subject 
to  tax,  it  would  have  to  yield  a  gross  return  of  ^8  5s.  iid.  in 
the  case  of  a  person  subject  to  the  maximum  rate  of  6s.  in 
the  pound.  At  different  rates  of  tax,  which  vary  according 
to  the  income  of  the  holder,  the  gross  return  would  have  to  be 
as  follows: — Tax  5s.  3d.,  gross  yield  £y  17s.  5d. ;  tax  4s.  6d., 
gro.ss  yield  £y  9s.  lod.  ;  tax  3s.  gd.,  gross  yield  £j  2S.  iid. ; 
tax  3s.,  gross  yield  £(>  i6s.  yd.  ;  tax  2S.  3d.,  gross  yield 
£6  los.  lod.  per  cent.  These  figures  show  that  War  Savings 
certificates,  which  can  be  cashed  at  their  full  current  value  at 
any  time,   are  the  war  investment  far  excellence. 

The  principal  neutral  exchanges  have  moved  against  this 
country  during  the  past  week,  the  most  important  of  these 
movements  being  a  fall  of  30  points  to  16.90  in  the  rate  for 
Spanish  pesetas,  and  of  29  points  to  19.71  J4  in  the  rate  for 
Swiss  francs.  Dutch  florins  are  also  dearer,  the  pound  sterling 
purchasing  9.72}^  florins,  or  one-tenth  of  a  florin  less  than 
last  week.  Stockholm  has  moved  against  us  slightly,  being 
quoted  at  14.025^  kr.  to  the  pound,  but  Christiania  at  J5.I7/4 
and  Copenhagen  at  15.22^^  kr.  are  8  to  10  points  higher.  The 
Chilean  peso  has  risen  19-32  to  i6i^d.,  but  Montevideo  has 
eased  slightly  to  65d.  for  telegraphic  transfers,  on  the  news 
that  the  Uruguayan  Congress  has  approved  the  grant  of  a 
credit  to  the  British  Government.  This  credit  is  for  $15,000,000, 
bears  5  per  cent,  interest,  and  is  redeemable  in  gold  in  two 
years.  The  loan  will  be  secured  by  Uruguayan  bonds  as 
collateral,  and  the  proceeds  will  be  used  to  pay  for  Uruguayan 
produce.  The  Montreal  exchange  has  fallen  2^c.  to?4.8iJ^, 
the  premium  on  New  York  funds  having  declined. 

Although  it  was  announced  last  autumn  that  the  Government 
of  the  State  of  Bahia  would  shortly  resume  the  payment  of 
interest  in  cash  on  the  external  loans  of  1888,  1904,  1910  and 
1913,  and  also  the  sinking  fund  contributions,  no  payments 
have  in  fact  been  made  up  to  the  present.  For  the  past  three 
years  the  coupons  on  the  1904  and  1913  loan.s,  which  were 
floated  in  London,  have  been  paid  in  5  per  cent,  funding 
bonds,  but  no  payments  have  been  made  in  respect  of  the  coupon 
due  January  i  last  on  the  1913  loan,  or  of  that  due  May  i  on 
the  1904  issue.  The  reason  that  this  default  has  occurred  is 
that  the  Government  of  Bahia  has  failed  to  remit  the  necessary 
funds,  as  it  had  foreshadowed  it  would  do,  and  negotiations 
are  now  proceeding  for  securing  a  resumption  of  payments  of 
one-half  in  cash  and  the  balance  in  Treasury  bills.  An  official 
statement  is  likely  to  be  issued  shortly. 
Silver. 

Silver  has  remained  all  week  at  49^d.  per  oz.,  and  there  has 
been  only  a  small  business  offering.  It  is  reported  that  the  United 
States  Government  has  decided  to  allow  legitimate  buyers  of  the 
metal  to  get  it  for  export  on  the  dollar  basis  price  for  the  present, 
says  Mccatta's  circular.  From  Montagu's  circular  we  learn  that 
25,000,000  ounces  of  the  silver  to  be  melted  down  in  America 
are  being  shipped  to  India,  and  according  to  the  Indian  currency 
returns  the  reserve  in  silver  coin  and  bullion  has  risen  there  to 
1,372  lacs.  The  note  circulation  at  the  same  time  is  10,596  lacs. 
Gold  coin  and  bullion  has  fallen  to  2,260  lacs.  It  is  officially 
reported  that  the  silver  output  of  Canada  for  last  year  was 
22,151,000  ozs.  compared  with  25.460,000  ozs.  in  iqi6,  and  with 
the  "  record  "  total  of  32,869,000  ozs.  in  1910.  The  stock  of 
silver  in  Shanghai  on  the  4th  inst.  was  about  31,700,000  ozs.  in 
sycee  and  $15,200,000.  This  is*  a  decline  of  900,000  ozs.,  but 
an  increase  of  $500,000  compared  with  the  figure  of  April  27 


Applications  for  the  Rs.  60.00,000  Indian  Council  drafts 
offered  on  Wednesday  amounted  to  Rs.  2,19,55,000.  Of  these 
Rs.  59,59,000  were  allotted  in  deferred  transfers,  and 
Rs.  41,000  in  immediate  transfers.  Tenders  for  bills  and 
deferred  transfers  at  is.  5  29-32d.,  and  for  immediate  transfers 
at  is.  6d.,   received  about  27   per  cent. 

Mr.  Peter  Forrester,  managing  director  of  the  Union  Bank 
of  Manchester,  Ltd.,  has  been  unanimously  elected  president 
of  the  Manchester  and  District  Bankers'  Institute,  in  succession 
to  the  Right  Honourable  I^rd  Colwyn. 


May 


1918. 


^be  Jnvestors'  TRevtew. 


459 


BANK    OP    ENGLAND 


AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32,  for  the 
Week  ending  on  Wednesday.  May  8,  1918. 


ISSUE     DEPARTMENT 

f 


Notes  Issued 


79,200,665 


479,200.665 


Government  Debt .. 
Other  Securities    .. 
GolflCoin  and  Bullion 
Silver  Bullion 


£ 
II,'  IS  100 
t.Hj  one 
60,750,665 


f79,2C0.665 


BANKING    DEPARTMENT 

£ 
..     14.553-0™ 
3.147,637 


Government  Securities 
Other  Seouritieb    .. 

Notes 

Gold  and  SilvdrColn 


£ 

5'!,87l.732 

97410,123 

2g,-n,  85 

6l4,8j8 


Proprtetors  Ctpital 

Rest     .. 

Public  Depositsfincluding 

Excleiuer,      Savings 

Banks,  Comu)lssioners 

of  National  Debt,  and 

Dividend  AoQOunts)  .. 
Other  Deposits 
Seven  Day  and  other  BIIU 

£183,414,378  £183,414,378 

Dated  May  9,  1918.  E.  M.  HARVEY,  Chief  Cashier. 

BANKING     DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  weel(,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  vear. 
May  9. 


f 

3.135,107 

54.17'  724 

"9.375.972 

37,907 

45.049,4O'> 
121,479  848 
34-745.456 


£ 

38,724,155 

55,019  611 

ao  p.c. 

5  „ 


Liabilities 
Rest 

Pub-  Deposits  . 
Other    do. 
7  Oay  Bills 
Assets. 
Gov.  Securities 
Uther        do. 
Total  Reserve 


NoteClfculailoo 
Coin  and  Bullion 
Proportion 
Bank  Rate 


May  T 
igi8. 


£ 
3,104,816 

34,372  863 

'37.652. '95 

11,079 

56.-t59,732 
102,862  454 
30,371,767 


£ 

49,439,220 

61,3  0,957 

177  p.c. 

5       ,. 


May  8, 
lgi8. 


£ 

3,147,637 

37, 573, '52 

128,129.817 

10,772 

55.871.732 
97,410,123 
30,132.523 


£ 

49  682,9''o 

61,365,503 

l8-2  p.c. 

5       ., 


£ 

<2  821 
3,200,289 


Decrease. 

5e^8,o  o 

5,452,331 

239,244 

9,522,685 


Increase 

£ 
243,760 

4,5 '6 
•5  P-0. 


9.523,37s 

307 

Increase. 


9,522,C85 


LONDON 

BANKERS* 

CLEAVING. 

Date. 

1       Increa--e. 

l>ecrease. 

1918. 

1917. 

f 

£ 

lanuary 

2,073  224,000 

1,865, u«,roo 

^o8,099,coo 

— 

February 

1,605,64,0  0 

1,779,124,000 

— 

173,870,000 

March 

1.784.83^,000 

1,492.825,000 

292,011,000 

— 

April         3 

324,156,000 

3S9, 547,000 

— 

65,191,000 

,,           10 

401,3'  7000 

253,111,000 

148,196,000 

— 

,1           '7 

3<8,58o,o03 

396,3  1,000 

— 

37.731. f  00 

25 

362,263,000 

365,133.000 

— 

2,850,000 

May          I 

378,749,000 

364,965,000 

13,785,000 

— 

„            9 

384,904,000 

4'  6,840,0.0 

— 

21,936,000 

Total 

7,673,673,000 

7,173,347,000 

664,091,000 

301,578,000 

PUBLIC  INCOME  AND   EXPENDITURE. 

(For  7  days  ended  May  4.) 


Revemub. 

Expenditure. 

Customs          

1,613,003 

National  Debt  Service 

£ 

Excise 

615,000 

Inter  st,   &c.,  on  War  Debt 

909,554 

Estate,  &c..  Duties  .. 

729,000 

Development  &  Road  Impvt 

Stamps 

liJ2.000 

Payments  to  Local  Taxation 
Other    Consulidated    Fund 

— 

Land   Pax  and  House  Duty 

2SO0O 

Property  and  Income  Tax 

1,939,000 

Charges        

44.197 

Excess  Profits  Tax  .. 

9,148,000 

Supply  Services 

;4,224,.co 

Land  Values 

5,000 

Bullion  Advances     ., 

150,000 

Post  Office 

700,  oco 

For    Advai  ce   for    Interest 

Crown  Lands 

on  Exchequer  Bonds  un- 

Sundry loans 

Mi--cellaneous 

895 

der   Capital  Expenditure 

57-9H 

(Money)  Act,  1904  .. 

— 

Bullion  advinces  repaid    .. 

1 20,0 10 

For  Treasury  Bills    .. 

j2,870,coo 

ForTreasury  Bi\U  for  Supply  87,287  ,coo 

Other  Debt  under  War  Loan 

3%  Excheque-  Bonds,  1930 

— 

Acts,  igi4-i6 

— 

5%  Exchequer  Bonds,  1922. . 

— 

For    War     Loan  and     Kx- 

6%  Exchrquer  Bonds  1920.. 
Nation  1   ^Var  Bonds         ..+ 



chequer      Bonds      under 

12,596.000 

Section  61  of  Finance  Act, 

War  Savings  Certificates.. 

I,(.l0,C03 

1916,  and  Seciion  54.  1917 

2,8?9,467 

4%  War  Loan.  1929-1942  1 

Under   Telegraph    (Money) 

5%  War  Loan,  ig29-i947  f  ** 

Act,  1913 

— 

Other  Dtbts  created   under 

Under    Post    Office     (Lon- 

War Loan  Act.  1915,  and 

don)  Railway  Act,  1913.. 

. — 

Fin  nee  Act,  1916.. 

9,716,684 

Under  Militar    Works  Acts 

— 

Telegraph  Money  Act,  1013 



Under  Housing  Act,  1914.. 

— 

Under  Post  Office  RIy.  Act, 

Public    Buildings  Expendi- 

1913  



ture  Act,  1903 

— 

Under  Military  Works  Act, 

Old  Sinking   Fund,  1907-8.. 

— 

1897-1903       

— 

Sinking  Fund,  1910-11 

— 

UnHer  Public  Buildings    .. 



China  In'ieiimity 

— 

Under  Housing  Act.. 



East  African  Loan.. 

— 

Repayment  of  Advance   for 

Cunard  Agreement  Act     . . 

— 

Interest     on     Exchequer 

Expendiiure  Ceititicaes   .. 

2,400 

Bonds           

— 

Depreciation  Fund  .. 

— 

China  Indemnity 



Suez  Canal  Drawn  Shares. . 

— 

East    Africa    Loan     repay- 

Ttmp.    Advances      Repaid 

3,146,905 

ments 

— 

Increase       in       Exchequtfr 

Suez  Canal  Drawn  S-ares. . 



balances        

— 

Ways  and  Means  Advances 

15,000,000 

Decrease      in      Lxchequer 

balances       

2.706.750 

^144,236,623 

5^144.236,623 

-  

— 



CURRENCY   NOTES- 

Return  of  Currency  Notes  (or  the  week  ended  May  8,  igtS. 

Issued. 

Cancelled. 

Outstanding. 

£i  notes         

los.  notes        

Notecenificates 
Previous  total 

4,620,219 

I  409,531 

650,000 

900,045.450 

2,528,278 

1,104,592 

100,000 

_66i,987,845_. 

665,7».7>5 

173.768.599 
3S9I5.8S6 
28,-90,000 

906,725,200 

241,004,485 

Ratio  of  gold  held  ai^ainst  notes,  this  week,  13.44  PC. ;  last  week,  13.55  P-c. 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.). 


Gold  coin  and  certificates 

Gold  St-ttlement  Fund 

Gold  with  foreign  agencies 
Total  gold  held  by  banks 

Gold  with  F  deral  Res.  Agent 

Gold  Redemption  Fund 

Total  gold  reserves    . . 

Legal  tender  notes,  silver,  &c. 
Total  reserves  , . 

Bills  discounied— Members'. . 

Bills  bought  in  open  market 
Total  bills  on  hand     . . 

U.S.  Gov.  long-term  sec. 

U.S.  Gov.  short  term  sec. 

All  other  earning  assets 

•   Total  earning  assets  .. 

Due  fm  other  Fed  Resbnk— n. 

Uncollected  items 

Total  dedctns.  fm  gross  dep. 

5%Red.FundagFed.Res.bkDt! 

All  otht  r  resources      . , 
Total  resources 

Capital  paid  in 

Surplus , 

Government  deposits  ., 

Due  to  membrs  -  Res.  account 

Collection  items 

Oiherd^ps  inc  For. Govt  crdts 
Total  gross  d**posits    . . 

F.R.  notes  in  actual  circulat'r 

F.R.  bk  nts  in  circn-  nett  liab. 

All  other  liab,  in  for  Gov  ci  dt; 
Total  liabilities 

Gold  res.  ag  nett  deposit  llab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Ratio  f^f  eold  res  to  nfttdep. 
and  F.R.  nts  liabilities  com- 
bined     . .         

Ratio  of  total  rfs.  to  net 
deposit  and  F.R.  note  lia- 
biUties  comb  aed 


Apr.  5,  1918. 


£ 
96,756,000 
76,232  600 

in.'OO.OOO 


18^.488,(00 

174,615,400 

4.'^an.Roo 


36^,    a4,tSOJ 
12  701.80^ 


375, <1 66,600 
114,776  600 
65.300,600 


i&o,'  77  200 

i2,o8'  ,600 

52,080,000 

614,40* 


244,fb2,200 

1,991.400 
69,300,400 


71,31,0,800 
107,400 
64.«f>o 


6q/.9(i.S  o 


I4,tiyf^,ouo 

326,800 

20.963.600 

294,656,800 

45,«27,P03 

16,413.400 


377,263  600 

295,984,000 

1.572,000 

1,9  6.6iO 


6gi.Q3i,Bon 


60  0% 
60.6% 


603% 


62-4% 


Mar.  28,  1918. 


£ 
g7,g8g,6co 

79.913.610 
10,^0-1  000 


168,4-  3  200 
170,43^,400 

4,290.2'  O 


363,140  800 

11.671  Sen 


374812. 600 
116,645.600 
60,813.0-0 


177,458,600 

11,638,000 

50  515.800 

704,600 


240.317,000 

5,189,000 

67,3  6  O'-'o 


73)215.0  0 
107,400 
74 '-8^0 


6?J9  196,8-  o 


14,844,600 
2j6,Foo 
20,817.200 
299,880,000 
43-379,403 
|fr,2i.8oo 


380,28^,400 
290,567,600 

1,595.6^ 
1,673,800 


689,19  '•^Q'J 


6  .4% 
Co-i% 


60.8% 


62.7% 


Apr.  6,  1917. 


£ 
7».49».400 

4C,C25,COO 


112,5  9t400 

75,690,000 

501,000 


88,7  0,400 
^.822,000 


19 ',532. 400 

3.585.600 
'6  •;47.ooi 


2u,l j2,6uO 
7.3'5.3oo 

14,60^,400 
3.f  6?,^oo 


45,129,600 

632,400 

29.284,.;  00 


29,966.800 
80,000 
cf 0,400 


268.669  200 


11,220,000 

9,292,aoo 
151,^43.800 

21,087,200 


182,023,200 
75.302,000 


26*^,660,200 


74.0% 
101.2% 


S6-o% 
84.7% 


N£W   YORK  ASSOCIATED    BANKS   AND    TRUST    COMPANIES 

(dollar  at  4s.).  _.^ 


Loans,  Discounts,  etc. 
Cash  in  Vaults  of  Members 

Fed.  Res.  Bk 

Aggregate  Reserves     , . 

Excess  Reserve 

Nett  Demand  Deposits 
Nett  Time  Deposits     . . 
U.S.  Deposits  Deducted 
Circulation 


May  4,  1918  April 27,^918  April  20,1918 


907,902,000    901 ,584,000 


21,138,000 
111,892.000 

1 1 ,848,000 
752.010,000 

36,812,000 

66,626,000 
7.232,000 


12,224,000 

7i6,6S4,OGO 
36,292,000 

7,212,000 


£ 
898,830,000 


10,970,000 

753.740,000 

36,328,000 


May  5,  1917 


724,99i5,ooo 


15,920,000 

721:670,000 

39,674,000 

5,754,000 


BANK 

OP  FRANCE  (25  Iranci  to  tbe  £). 

May  2,  1918. 

April  25,  1918. 

April  18, 1918. 

£ 

May  3,  1917. 

£ 

£ 

£      , 

Gold  In  hand 

133,701.960 

133.670,200 

133.625.360 

132,109,4^0 

Silver  In  hand 

10.244,640 

10.241,840 

10.143.040 

10  269,3';o 

Bills  dlsoouQted 

52,643,210 

41.751  280 

57.649,760 

25,785.520 

Advances 

40.161,280 

55,891,160 

44.079,960 

45.215. 320 

N'ote  oiroulation 

1,069,325,080 

1,055,810,040 

1,049,270,840 

767,335.523 

Piblio  deposits 

1,606,610 

2,23  -,560 

1,679,'  00 

2,826,200 

Private  deposits 

125,414.520 

132,130,120 

128.540,280 

98,219,200 

Po'-«ien  Ri'U., 

3^1.440 

34^.080   '        425.400 

65,840 

Proportion  between  bullion  jnd  circniation  21. o3  per  cent.. against  21.34  per 
eent.  last  week.  Advances  to  tbe  State  £638,000,000,  increase  £12,000,000.  The 
adjourned  payments  of  drafts  in  Parison  account  of  the  moratorium.  £19,261,120, 
decrease  £11,840,  and  at  the  branches  £21,556,200,  decrease  £60,600. 

IMPEKIAL  BANK  OF  GERMANY  (20  marks  to  the  JEl. 


April  30, 1918.  April  23,  1918.  April  15,  1918.  April  30, 1917 


Total  Coin  &  Bullion 

Treasury  Notes 

Bills  discounted 

AJvances 

Note  oJroulatloD 

Deposits 


123. 239.800 
76,759.750 
694,389  400 
435.500 
591.039650 
352,750.250 


£ 
123,236,250 

73.235,150 

634,934.950 

361,900 

578,201,550 

a4. 919. 150 


£ 

126,409,400 

73,023,300 

698,240,700 

317.750 

586,359,900 

36S.765,9oo 


127,461,150 
25,627,600 
435,738,0:0 
658.600 
415.770,150 
l99.''49.2oo 


Clearing  House   return     during    March    £459,8i5.355,   against    £420,879,905 
in  February. 

BANK    OF    SPAIN  (25  pegetag  to  the  £)■ 

April27, 1918  April2o,  1918  Api*Ii3,i9i8  ApriUS.ijir 


^Excluding  sales  through  banks  which  have  not  yet  been  brought  to  accoi:nt. 


Gold        

Silver 

Fo  «isii  Bills 

DiscouDis  and  Stiort  Bills  .. 
Tredsury  AcQouni,  &c. 
Notes  In  Circulation  .. 
Current    Accounts,   Deposit! 
Dividends,  Interssts,  &0.     . 
Government  Securities 


£ 

81,11-4,753 

98,280.814 

3,736,343 

30,230,376 

25.011,067 

116.501,009 

34,875  995 

2,109,813 

3,410,170 


80,877.818 
28.171.310 
3  644,077 
30.977.14' 
24.986,708 

jl6,376,ro5 

35,234,664 

I,850.o.'i3 

3.788,563 


£ 

55.347,614 

23,218431 

3,466,619 

33.696.053 

25,4^6,703 

96,39',467 

30.776,10a 

2,038,691 

8,964,897 


460 


Zbc  investors'  TRevtew 


May  II,   1918. 


LONDON  COURSE  OP  EXCHANGE. 

Usance. 

May  y.  igi8. 

May  9 

1318. 

Sellers. 

Buyers. 

Sellers. 

Buyers 

Amsterdam  . .     . . 

Cable  transfers 

9  7J 

9.80 

9-7i 

9-77 

Paris      

Cable  transfers 

17.13 

27.18 

27  13 

27.18 

Three  months'  bills. .     . . 

17.53 

2758 

«7.53 

27.58 

Switzerland..     .. 

Cable  transfers 

■  978 

1988 

19.55 

19.65 

Threi- months' bills..     .. 

»o.  13 

20.2  i 

19.90 

20.00 

Genoa,  Ac 

Cable  transfers 

4J75 

42.83 

42.90 

43.00 

Spain     

Cable  transfers 

17.08 

17.1H 

17. CO 

17.15 

Three  months' bills  ..     .. 

*54 
28! 

16 
29 

% 

66i 

Lisbon  ard  Oporto 

Cable  transfers 

29I 

Co['enbacen..     .. 

Cable  transfers 

15-15 

■  ;-25 

15.12 

15.23 

Chrisliania  ..     .. 

Cable  transfers 

"5  J5 

■  5-25 

15.10 

15.20 

Stockholm    ..     .. 

Cable  transfers 

1402 

14.12 

>3-93 

14  C3 

tial  advances  were  recorded.     Even  such  speculative  things  as 
Peruvians  and  Uruguays  were  well  supported. 


I  Last 

I  Week 


FOREIGN    RATES    OF    EXCHANGE    ON    LONDON. 

Method  of 

Last 

Thii 

Quoting. 

It 
II) 

Week. 

Week. 

Paris,  cheques 

Francs  to  £1 

23.22J 

27.16 

27.i5i 
979i 

Amsterdam,  cheques 

Florins  to  £1 

12.107 

9.82 

Italy,  sight 

Lire  to  £1  .. 

25.22J 

42.82J 
17.17* 

*^    , 

Madrid,  sight 

Pesetas  to  f  I 

25.22J 

l^t 

Lisbon,  sight 

Hence  to  milrels  . . 

53id. 

29ia. 

Switzerland,  sight    .. 
Christiania,  sight      .. 

Francs  to  /i 

25.22J 

19.92. 

-^n 

Kroner  to  £1 

18.159 

15.13 

Stockholm,  sight 

Kroner  to  f  1 

18.159 

14.07! 

14.02 

Copenhagen,  sight    .. 

Kroner  to  £  I 

18.159 

15.171 

15.20 

Petrograd,  sight 

Roubles  to  j^ic     .. 

''<^ 

nom. 

nom. 

Alexandria,  sight      . . 

Piastres  10  £1 

97i 

•97  , 

Bombay,  T.T 

Sterling  to  rupee.. 

1/4 

1/5* 

1/5  i 

Calcutta,  T.T 

Sterling  to  rupee.. 

1/4 

i/5i 

1/5  4 

Hong  Kong,  T.T 

Shanghai,  T.T 

Sterling  to  dollar.. 

3/1I 

3/1 

Sterling  £0  tael     . . 

— 

4/5 

4/6 

Singapore,  T.T 

Sterling  to  dollar. . 



2/44 

J/2i 

2/4A 

Yokohama,  T.T 

Sterling  to  yen     . . 
Dollars  to  £1 

ai.sSd. 

New  York,  cable     . . 

4.86§ 

4.768 

4-76*3 
52  d. 

Buenos  Aires,  T.T 

Pence  to  dollar    . . 

47.58d. 

Slid. 

Valparaiso,  90  days.. 

Pence  to  peso 

i6Ad. 

15  id. 

Montevideo,  T.T 

Pence  to  dollar    . . 

5ld. 

65W. 
1 3  Ad. 

65d. 

Rio  de  Janeiro,  90  days     . . 

Pence  to  milreis  . . 

i6d. 

i34d. 

OPEN  MARKET  DISCOUNT.  Last  week.  Thisweek 

Per  cent.     Per  cent 

Thirty  and  sixty  day  remitted  3if^— I     ••    3^—3^ 

Three  months  ,,  •■         ■•         ••         *•        3^       ••        33 

Pour  monihs  ■,  <•         ..        ••         ••     3i— ft   ■•        39 

Six  months  ,  34—8     ••        3J 

Three  monihs  fine  laland  bills  4-|    ..      4-3 

Pour  months  *i~l    ••      ^^ — I 

Six  months  4t-i    ..      4J-I 

BANK    AND    DEPOSIT     RATES.     Last  week  This  week 

Per  cent.    Per  cent. 
BsDit  of  England  minimum  discount  rate         ..        ••        ..        5         ••         5 

,,  ,,         short  loan  rates  —      ••        — 

Bankets' rate  on  deposits 

Bill  brokers' deposit  rate  (call) 

„  7  and  14  days' notice  ..        ••        •■ 

Current  rates  for  7  day  loans  

,,  for  call  loans  


3 

3 

3 
3 

»4-3 

:3-1 

.  »4-3 

The  Week's    Stock   Markets. 


It  is  gladsome  to  find  that  in  spite  o£  all  the  distracting 
cross-currents  of  domestic  politics  the  Stock  Exchange  has  not 
missed  the  fundamental  points  of  the  miUtary  situation,  and 
its  persistent  cheerfulness  this  last  week  ought  to  be'  a  useful 
lesson  to  those  whimperers — professional  or  otherwise — who 
have  the  smallest  appreciation  of  the  fundamental  strength  of 
the  British  people.  That  does  not  depend  on  the  training  of 
Boy  Scouts  or  the  maudlin  jingoism  which  was  the  reli- 
gion of  a  disgruntled  Kipling  and  his  followers.  We  can  still 
look  facts  squarely  in  the  face,  and  taking  the  Stock  Exchange 
as  a  barometer — not  always  any  more  reliable  than  the  mercury 
— can  take  our  knocks  with  as  much  equanimity  as  our  suc- 
cesses. There  is  nothing  much  else  to  be  said  about  the  past 
week,  which  has  been  one  of  intense  anxiety  in  several  ways, 
and  it  is  of  little  use  to  discuss  the  trifling  incidents  that  have 
influenced  individual  securities  or  sections  of  the  market. 
Broadly  speaking,  things  are  going  well,  and  the  little  details 
that  are  not  so  satisfactory  may  be  left  in  abeyance  until  the 
situation  is  more  definitely  cleared  up. 


For  the  first  time  for  a  good  while  back  the  number  of 
transactions  recorded  on  the  Stock  Exchange  has  exceeded 
daily  3,000  markings.  The  feeling  has  been  confident  largely 
owing  to  the  fact  that  the  position  on  -the  Western  front  has 
seemed  to  5e  developing  strongly  in  the  Allies'  favour,  and  the 
small  incidents  that  have  occurred  to  upset  the  general  confi- 
dence are  not  regarded  as  of  any  importance.  The  domestic 
squabbles  with  which  we  have  been  faced  do  not  count  in  the 
genera!  train  of  events.  Consequently  we  find  that  the  gilt- 
edged  list,  headed  by  Consols  and  War  Loan  stocks,  have  all 
improved  to  an  appreciable  extent.  Even  the  Cinderella  3i 
per  cent.  Loan  has  recovered  a  fraction,  and  Indian  sterling 
issues  also  have  advanced.  Bank  stock  has  moved  up  on  the 
announcement  of  the  appointment  of  a  Comptroller,  to  which 
vre  refer  more  specifically  elsewhere.  Colonial  Loans  also 
came  into  more  prominence,  and  several  of  the  leading  issues 
gained  a  moderate  fraction.  In  the  Foreign  section, 
Brazilians,  Chinese,  Japanese,  Spanish,  and  Portuguese  were 
all  in  more  or  less  demand,  and  in  nearly  every  case  substan- 


5%  i9»9-47.. 
,    .-  "^        4%,i9'9-4«.. 

India  3%  

.,     iV% 

Australian  ;}%,  1020-22  .. 

Canada  4%,  1940-60 

..       4j%.  "920-5 

Argentine  5%  1886 

Beieian  3% 

Brazil,  1913 

^,.      5%.  1914    

Chinese  1896  


Egypt  Unified  4% 

Caledonian  defd 

Gt-  Central  pto 

,,       „        dfd 

dt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd. 
London  Chatham  ord. . . 
Canadian  Pacific 


B.  Indian  Guar.  4)%  debs- 
Grand  Trunk  ord.    

Do.  ist  pf 

Do.  3rd  pf 

Antofagasta  dfd 

B.  A.  &  Pacific  

B.  A.  Gt- Southern 

B.  A.  Western    

Cent.  Argentme  ord 

Anglo-South  American   . . 

Bank  of  Australasia 

Bank  of  N.S.  Wales 

Barclay  &  Co.  "  A  " 

Do.       "B" 

Capital  &  Counties  

Chartered  of  India    

tiongkong  &  Shanghai    . . 

Lloyds  

Armstrong,  Whitworth .. 
Birmingham  Small  Arms 

Cammell-Laird 

Cargo  Fleet 

Davis,  D.,5/   

Dorman,  Long   

Associated  Cement 

Boraidfd 

Bovril    

British  Amer.  Tobacco  pf. 

British  Aluminium  

British  Oil  4  Cake    

Brunner,  Mond 

Castner-Kellner 

Eastern  Telegraph    

t£astmaiis 

C-unard , 

Furness,  Withy 

P.  &0.  dfd 

Royal  Mall 

Anglo  Argentine  ist  Pf. - 

Brazil  Traction 

Darracq    

Anglo-Egyptian  "  B" 

Burmah , 

Lobitos , 

Mexican  Eagle  pf 

North  Caucasian 

Roumanian  Cons 

Allagar2/- 

Anglo-Dutch,  ]fi    

Anglo-Java  Rub.  2/-     ... 

Anglo-Malay2/ 

Ayer  Kuning  £\ 

Brit-  N.  Borneo  Trust  £ 

Bukit  Cloh2/- 

Bukit  Mertajam  2/-   

Bukit  Semt^awang  2/-  ... 

Carey  United  ;fi  

Chersonese 

Chevi  t2/-   

Dalkeiiha/- 

Grand  Central  £1 

Highlands  £1 

Java  Investment  £1 

Johore  Rubber  Lands  ;fi.. 

Kamunin    2/- 

Kinta  Kellasa/- 

Labu2/- 

Langen  Java  ^1 

Linggi2/- 

London  Asiatic  2/- 

Malayalam  £i 

Mcrlimau  2/-  

Bechuanaland  Exp 

Brakpaii  

Brok.  n  Hill  Prop.  (8/-)    . 

Cam  &  Motor 

Central  Mining  (£12)  ... 

Chartered    

City  Deep     

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (10/-} 

De  Beers  did.  [£t  ion.)  . 

East  Pool('/-) 

East  KdUd   

G.duld 

Geevor  (10/-)   

Gov.  Areas  Mo<?     

Gt.  Boulder  12/-1    


99} 

9lA« 
looj 

a 

93ii 

621 

67i 

84JX 

88 

76 

87X 

\k 

34! 

8^1 
«4 

'^* 
■57J 
84 
88 
50 
I8J 

'45 

41} 

68 

68 

59 
8 

"7 

35i 

7i 

12J 

57 

74 

82 

S5 

41/6X 
64/6 
68 
26/ 

10/q 
35/6 

4 
37/ 
21/ 

■7/ 
30/9 
30/6 

3i 

154 
9/ 

4i 
6t/9X 

329J' 

120 


2} 

2j 

42i 

4) 

3J/6x 

32^1 

I'i/ 

35/6 

% 

7i 

2 

li" 

? 

7/6 

7/6 

1/ 

3/ 

30/ 

29.'3 

6,'2 

6/1 

■3/104 

■3/74 

446 

45/ 

!6,'9 

16/9 

4/7 

4/9 

4/4i 
V2J 

4/3 

3/24 
40/6 

39/6 

3/lJ 

1/24 

5/61 

5/8x 

2/7} 

2/74 

26/ 

'',1b 

576 

57/ 

24/9 

«4/ 

30/7J 
.3/l4 

3'/3 

1/104 

l" 

1/9 

8/6 

8/6 

40/ 

37/6 

as/j 

21/9 

8/9 

,8/44 

17/ 

36.6 

5/2 

5/2 

7/ 

7/3 

4t 

4) 

6v 

67/ 

11/3 

11/ 

5il 

5t« 

15/74 

15/6 

3^ 

Ifl 

34/ 

'l2j 

12 

l4lb 

31/ 

t 

4/3 
2 

25/ 

26; 

3M 

3H 

11.9 

11,6 

N.S.W.5%,  I92I-3    

..      51%-  »9»o-a 

„      5l%Debs 

New  Zealand  4%,  1929  ,. 
Queensland  4^%.  1920-5.. 
S.  Australian  5j%  1922-7. 
Union   of   S.  Africa  4^%, 

i9w>-5     

Victoria  4^%,  1920-3... 

Westn.  Aus.  4%    

French  War  Loan,  5%  .. 
Japan  4j%  (ist),  1905   .... 

5%.  <907 

Mexican  5%,  1S99   , 

Russia  4   % 

M      44%,  19^-9 

M      5%,  1906 

London  and  N.-W.     ... 
London  and  b.-W.  dfd,  . 

Metropolitan 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth. -Eastern 

Sth.-Eastern  dfd 


Chesapeake. 

Erie 

Southern  . . . 


Leopoldina 

Mexican  ord 

San   Pauto  (Brazilian).. 
United  of  Havana 


London  &  Brazilian 

London  City  &.  Midland. 
London  County  &  West. . 

London  Joint  Stock 

Nat.Prov.(;Cio4pd) 

Do.  (iCiapd) 

Standard  of  S, A 

Union  Discount 


Kynochs  

Mond  Nickel  ord 

Nobel,  ii    

South  Durham  Steel  .... 

Thornycroft    , 

Vickers , 

ForestatLand 

Hudson's  Bay    

Imperial  Tobacco  '  C  '  pf 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

Pears,  A.  &F 

Underground  Inc.  Bds. .. 


.^oats 

Jonrtaulds 

Sngtish  Sewing  Cotton  . 
'ine  Cotton  Spinners  . . . 
Harrods  Stores 


Last 
Week 


Demais  Bros 

National  Steam  Car. . 

Rolls-Rjyce 

Shell 

Spies  (10/-) 

Trinidad  Leaseholds 

Ural  Ca«piaa 

Venezuelan 


Perak2/-  

Port  Dickson  2/-  

Rub.  Estates  Krian  2/-. 

Rubber  Trust  £1 

Sampang  (Java)  a/-... 

Seaport  {,i 

Sengat  2/- 

Seremban  ;Ci 

Stalang  £1    

Singapore  Para  3/-    . . . 
Singapore  United  2/-    . 


Pataling  2/< 

Straits  Bertam  2/- . . . . 

Sumatra  Paras/- 

Sungei  Bahru  £1   .,.. 

Taiping  2/-  

TandjoiiK  £1   

Tandjong  Malim  £i., 

Tebrau  £t  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdanga/-  .. 

Vald'Ora;- 

Vatlatnbrosa  2/- 

Kyshtim    

Mashonaland  Agency 
Meyer  &  Charlton    .. 

Modder  *'  B  *' 

Do.    Deep 

Mysore 

Nigerian  Tin 

Pahang  (j/-) 

R<ind  Mines  (3/-)    .... 

Renon<; 

Rio  Tinto(jC5)  

Russo-Asi  tic 

South  Crcfly  (5/-).... 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep   


1014 

85 

9^4 


934 

924 

79 

78 

934 

88 

534 

3J4 

424 


14 

55 

93l 
27 


37 

16 

182 

7i4 

78 
•5 
284 
«5 
29I 

IIX 

■e| 

39.6 
3l 

73' 
41/6X 
40/ 
43  3 
47/6 
7A 
33;6 
20 '6 

3A 

l6,x 

■i 
74 

'7^ 
52/6 
34/ 

36/1 

■if 

6. 

6/ 

71 

4/ 

3/5 
27/4 
«/54 
25  9 

3/ 

36/9 
65/ 

4/ 
3,'oJ 

39/9 
6/3 
* 
36/ 
4/ 

86/6 
30/6 
65/ 
4"/ 
2/6 

10/ 

3/74 
19  6 

i 
6/b 
4H 


12/6 

I. 

2| 


Week 


Home  Railways  have  become  a  much  better  market  than  has 
been    experienceid    for    some    considerable    time    past,    probably 


Mav  II,   1918. 


Cbe  Jnvestove'  IReview. 


461 


<jwiiig  to  the  statement  made  by  the  President  of  the  Board  of 
Trade  with  regard  to  the  enormous  increase  in  traffic  since  the 
war.  It  would  certainly  be  most  unfair  that  railway  share- 
holders who  have  had  a  bad  time  for  many  years  past  should 
not  reap  some  of  the  benefit  of  the  increased  revenue  which  is 
now  being  earned,  but,  on  the  other  hand,  ii  must  be  remem- 
"bered  that  expenses  also  have  gone  up  to  a  quite  inordinate 
extent.  How  the  balance  should  be  held  between  the  two  con- 
flicting views  is  a  point  that  will  have  to  be  derided  later. 
Whatever  may  happen,  it  appears  that  at  the  present  level  of 
prices  the  better-class  railway  stocks  are  regarded  as  a  good, 
sound  lock-up.  American  Rails  scarcely  moved,  but  towards  the 
end  Chesapeakes  and  Chicago  Westerns  were  in  demand,  and 
advanced  a  point  or  two,  while  the  rest  of  the  list  was  good. 
Canadian  Pacifies  kept  firm,  and  Trunks  also  maintained  their 
level,  in  spite  of  the  terribly  disappointing  results  which  have 
been  recorded  recently.     It  is  exceedingly  difficult  to  assess  the 

I  «xact  position  in  Argentina,  and  the  weekly  recurrence  of  labour 
troubles  seems  to  indicate  that  the  country  is  still  in  a  very 
disorganised  state,  but  on  balance  prices  have  hardened,  and 
we  may  take  that  as  a  favourable  symptom.  Guayaquil  and 
•Quito  fell  back  rather  sharply,  but  United  of  Havana  and 
associated  companies  showed  considerable  strength. 

Bank  shares  generally  had  a  firm  appearance,  with  Barclay's 
particularly  prominent,  and  in  many  other  cases  fractional  gains 
were  recorded.  Insurance  shares  also  were  in  moderate  de- 
mand, and  as  a  rule  prices  improved  where  any  change 
occurred,  but  Royal  Exchange  dropped  back  a  point.  Brewery 
■shares  seemed  to  rather  like  the  proposals  for  State  expropria- 
tion, and  mostly  the  market  has  shown  a  very  strong  tendency, 
tut  AUsopps,  City  of  London,  and  one  or  two  others  which  had 
gone  too  far  ahead  fell  back  a  little.  Iron  and  Steel  shares 
generally  showed  moderate  activity,  and  the  movements  were 
on  the  whole  rather  in  favour  of  sellers,  while  Otis  Steel  at 
one  time  jumped  8  points,  but  closed  below  the  best.  In  the 
T>and  division,  Hudson's  Bays  rose  nearly  J,  and  hold  their 
ground,  although  the  tendency  elsewhere  was  dull  towards  the 
finish.  In  the  Shipping  division,  P.  and  O.  deferred  ad- 
vanced 2  points,  and  Court  Lines  also  showed  strength,  but 
the  Royal  Mail  dividend  had  no  appreciable  effect.  Miscel- 
laneous Industrials  generallj-  were  good,  with  Marconis,  Salt 
Union,  Lever  Bros.,  Bryant  and  Mays,  Cements,  and  Dunlop 
Rubbers  all  materially  higher.  On  the  other  hand,  there  was  a 
rather  severe  slump  in  Courtaulds,  which  brought  the  price 
down  round  about  6J. 

Oil  shares  generally  have  been  much  better  supported  than 
would  have  been  expected  from  the  condition  of  the  industry 
in  some  of  the  main  fields  of  production.  That,  of  course, 
helps  companies  like  Anglo-Egyptian,  Burmahs,  and  Trinidad 
Leaseholds,  but  the  upward  movement  has  also  extended  to 
several  of  the  Russian  and  neighbouring  fields.  Optimism  is 
a  great  thing,  and  in  the  most  depressing  circumstances  it  is 
exhilarating  to  find  that  the  supporters  of  the  industry  can 
show  so   much   confidence   in   the   future.     Rubber   shares    have 

;  been  dull,  and  most  of  the  changes  have  been  in  a  downward 
direction.  Things  at  the  moment  are  not  going  well  for  the 
industry,  and  in  spite  of  the  fact  that  ultimately  it  must 
establish  itself  as  one  of  the  great  factors  of  indu.strial  develop- 
ment, for  the  time  being,  partly  owing  to  the  stupid  attempt  to 
manipulate  prices,  the  outlook  is  not  narticularly  encouraging. 


We  are  glad  to  see  that  General  Hertzog  has  abated  his  Re- 

.publican  zeal   for  the  time  being.     He   is  a  sincere  Republican, 

and  in  his  way  a  true  South  African  patriot,  but  his  judgment 

went  astray  when  he  commenced  fierce  Republican  propaganda 

in   the  micfst  of  the  world  crisis,  and  he  never  took   account  of 

the  fact  that   South  Africa  is  bound   to  be  under  the  shield  of 

]  some    great    Power   if    it   is  to  enjoy    its    desired    freedom,    Re- 

,  publican   or  other.     He  forgot  also   the  spirit  and  ideals  of   his 

British-born    or     descended     fellow    citizens.     Happily    he    has 

;  decided  to   abate  his    intemperate   propaganda   for   the   present, 

[and   to   be  content  with  ''theoretical"    Republicanism. 


LONDON    PRODUCE    MARKETS, 


General  trade  proceeded  quietly,  but  price  changes  were  rot  of 
;  much  impo'tance  during  the  week. 

Sugar  remained  at  previous  level  of  prices. 

Coffee. — The  market  is  quiet,  with  mostly  Brazilian   varieties 

on   ofler,   though  during    the  week   some  Uganda  consignments 

'offered   sold  readily  at  sati'-factory  prices.     Bold  greenish,  sold, 

I02>.   to   loSs.   6d.     African    Gazenga,   68i.    to     68s.   6d.       For 

future  delivery  the  position  remains  inactive  and  nominal. 

Cocoa  sparingly  offered,  and  a  steady  demand  ensued  at 
graded  prices. 

Rice. — In  steady  support  at  fixed  quotations.  Beans  and  peas 
meet  with  fair  patronage. 

Spice. — Pepper  steady,  quiet  for  black,  but  white   met  a  good 

Idemand,  and  rites  farther  improved.     Fair  black  Singapore,  on 

|«pot,  sold,  IS.  4d. ;   Aleppy,  is.  4jd.  ;    Tellicherry,  is.  4Jd. ;  white 

ISinganore,  2s.   3jd.  ;  and  Muntok,  2S.  4d.     Cloves  dull,   and  fair 

Zanzibar,  spot,  sellers,  2S.  sd.     Tapioca  steady,  quiet. 

Shellac— Market  quiet,  and  fair  free,  T.N.  standard,  on  spot, 
quoted  345s. 

Robber,  after  opening  the  week  steadily,  assumed  a  quiet  and 
easier  tone.     Plantation,   standard   spot  crepe,  sold,   2S.  4d.   to 


2s.  3Jd. ;  June,  23.  4jd.  to  23.  4d.  July-December,  2s.  sjd.  to 
2S.  4fd.  Standard  ribbed  smoked  sheet,  spot,  sold,  2S.  3d.  to 
2s.  3jd.,  23.  24d.  ;  July-December,  2s.  4jd.  to  2s.  4d.  Fine  hard 
Para,  spot,  sellers,  3s.  ;  soft  fine,  23.  iid.  ;  ball,  is.  S^d. 

Corn  (Mark  Lane). — Business  was  on  a  limited  sc<le  since  last 
Monday,  and  price  changes  unimportant.  Wheat:  English 
nominal  at  76s.  gd.  per  qr.  (504  lbs  ).  Of  imported  grades,  Has. 
I  and  2  Northern  Manitoba  sold  at  82s.  3d.  and  803.  gd.,  with 
some  hard  winters  at  803.  gd.  Flour:  Engl  sh,  443.  3d.  per  sack, 
ex  mill.  Maize:  American  kiln-dried  realised  ygs.  gd.,  being  at 
the  same  time  very  sparingly  offereL     Barley:  English  nominal 


CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK  ENDING    MAY  15.  (918. 

Last 

This 

1 

Last 

This 

Week. 

Week. 

1 

Week. 

Week. 

(agar— pec   owl. 

£   s.    d 

£    s.  d. 

Wool— per  lb. 

£  ».  d. 

£    ••  d. 

duty    25  8,  98% 

Australian 

polarisation 

1     ScoiireJ  Merino 

nom. 

Dom. 

Tate's  Cubes 

3    4    9 

3     4     9 

iSconred  Cr'sabr'H 

nom. 

nom. 

Crushed 

3    4    9 

3    4    9 

jGreasy  Merino    .. 

nom. 

nam. 

Granulated  ..     .. 

2  17    9 

2  r7    9 

;Greasy  CrossbreL 

nom. 

nom. 

Lyle's  granulated 

2  17    9 

2  17    9 

New     Zealanc 

Foreign        granu- 

1   (scoured)  Merino 

nom 

nom. 

lated,  first  marks 

;Greasy  Crossbred 

nom. 

nom. 

f.o.b.,  spot 

nom. 

nom. 

Cape  snow  white 

nom. 

nom 

GermatiCubel.o.b 

nom. 

nom. 

French  Cube 

Indlarubberp.lb 

Plantation,      Spot 

prompt 

Crystallised,  West 

India 

nom. 

nom. 

Crepe 

0    2    4 

0     2     4 

2  17    9 

2  17    9 

Beet,   88%    f.o.b. 

nom. 

nom. 

Goal— per  ton 

Durham,  best     ,. 

nom. 

nam. 

Tea — pec  lb.,  duty 

Indian  Pekoe      ,. 
Broken    ,, 
Orange    „ 

s.d.  s.  d 

s.  d. 

Seconds       ..     .. 
East  Hartlepool.. 

nom. 
nom. 

nom. 
nom. 

I  4 
J  4 
I  4 

I  4 

I  4 
I  4 

'Seconds       .,     .. 
!  Steams,  best 
Seconds       ..     .. 

nom 
32    6 
39    6 

nom. 
32  6 
296 

Broken    „ 

I  4 

I  4 

Pekoe    Souchong 

'  4 

I  4 

Load— per  ton. 

i     s.  d. 

£    >.  d. 

Ceylon  I'ekoe      .. 

■  4 

I  4 

English  Pi»;..     ■  ■ 

nom. 

nom. 

Broken     ,, 

I  4 

I  4 

foreign  solt,  net 

£29i-£28i 

£29j-£28i 

Orange    ,, 
Broken 

I  4 
I  4 
I  4 

I  4 
>  4 
I  4 

IQulckallTor— per 

Pekoe  Souohong 

1    bottle  tirsthand 

1 

no  01. 

nom. 

Ooooa  —  pec  owt. 

s   d.  s.  d 

S.  d.    1    d. 

'tin- per  ton 

duty  61.  pec  lb. 
Trinidad  — per  GWl 

S6  0  90  0 

86  0  go  0 

t^iiglisb  Ingots     . 
I)o.    b.irs         ,. 

f3S8-£3;o 
£3«9-f37i 

£400 
£401 

Gcenada       .,     .. 

80  085  0 

80  0  85  0 

Standard  cash    .. 

£360 

£380 

West  Alrioa..     .. 

60  0  65  0 

60  0  65  0 

TinFlateSiper  bos 

nom. 

nom. 

.Ceylon  Plantation 

78   0 .03    C 

75  0100  0 

Guayaquil     ..     .. 
Ooir«e— per     owt. 

up  to  90  c 

up  to  93  0 

Copper — per  ton. 
lingltsb,     Tough, 

duty  42/-  per  cwt. 
Sast  India    ..     .. 

lamaica 

Costa  Rica   ..     .. 

iio-o  133-C 
77-0  150-0 
iio-o  137-0 

tioo  135  0 
77  0  151  0 
110  0  ij7o 

per  ton      ..     .. 
tiest  Seleotdd     .. 

Sheets 

Standard      . .     . . 

nom 

£"9-£'n 

£'*9 

£II0-II05 

nom. 
£t'?-£i23 
^£'49    , 

£ItO-I[0| 

Prodslona- 

Butter,  perowt. 

Juto— per  ton. 

Australian  finest 

252/ 

252/ 

Native    tirsts    for 

Argentine     . .     . . 

4^1 

252/ 

shipment 

nom. 

nom. 

(cis,n  Creameries 

nom. 

nom. 

Dutch  ditto..     .. 

nom. 

nom. 

Oils- 

Russian  fliiest     .. 

nom. 

nom. 

Linseed, per  ton.. 

£58 

£5B 

Paris  baskets 

nom. 

nom. 

Rape,   crude   

£66 

IS 

Danish  flnest 

nom. 

nom. 

Coit'n  Seeu,crut.u 

£60 

Brittany     rolls  — 

Petroleum  Oil. per 

dot. lb 

nom. 

nom. 

8  lbs. 

I/IO) 

i/iij 

1/105 

Water  White      .. 

1/1.4 

Baoon— per  t;wl. 

;Oil  Seeds, Linsetiil 

— 

Irish      

188/ 

188/ 

Calcutta— pel   ton 

Continental..     .. 

172/ 

•72/ 

1                         Spot 

29  15    0 

By  agree- 

Canadian     ..     .. 

17  /-'72/ 

1 70/- 17;/ 

ment. 

Amecioan     ..     .. 

i;o/-i8o/ 

iTo/'ieo/ 

Kape      

£29-io£3o 

£29-10/30 

dama — pec  cwt. 

iron— per  ton 

Iclsh       

nom. 

nom. 

Cleveland  Cash  . . 

nom. 

nom. 

Canadian      ..     ., 

162/- 165/ 

!62/-l65/ 

American     ..     .. 

125/-165/ 

123/-165/ 

Tobacoo  —  duty. 

ahaesa— peccwi. 

nunianufaoturetj 

Dutch 

nom. 

nom. 

8/i-io/44  per  lb. 

16-26 
I  0  -I    6 

Cauadian     ..     .. 

nom. 

nom. 

Vugmia>i;ai. 

I  6-2    6 

English  Cheiidar 

I 26/- I 68/ 

126/-168/ 

Kemucky  leai     . 

I  0— I    6 

Wilts  loaf     ..     .. 

nom. 

nom. 

Latakia 

nom. 

nom. 
I  6  -«    6 

New  Zealand 

nom. 

nom. 

Havana..      .. 

I  6-6    6 

Rice— per  cwt. 
Japan     

41    3 

S.      it. 

41    3 

Cigars,   duty    15  ■? 
per  lb. 

2/  upds. 

2/  upds. 

Rangoon  a  stars  . . 

26    3 

26    3 

TImbor— Wood. 

K<ga— per  120. 

English 

Irish       

Djuish 

Pitch  fine    ..     .. 

30J/— 40J/ 

J  00/— 40-./ 

34  0-35  0 

34  0  s6  0 

Indian    ludh 

38j;-7jo/ 

58o/~  70c/ 

31  6-33  0 
34  0  36  0 

32  6-3i  6 
J 5  0-36  6 

Tnrpentlno— 

Bpelter- 

American  Spot  .. 

120/ 

120/ 

G.O.ii.  as  to  posi- 
tion      

£54  £50 

)f54  £50 

Copra— per  ton 

Malabar        ..     .. 

46     0     0 

46    0    0 

Flour-per  sack. 

Cey  on 

46     0     0 

46    0    0 

Country  Straight 

K.M.S.  Singapore 

45  10    0 

45  ;o    0 

Runs  ex  Mill .. 

44/3 

44/3 

F.M.    Straits      .. 

45  "0    0 

45  10    0 

at  62s.  gd.  to  63s.  gd.  per  qr.  Oats:  American  white  clipped  No.  2 
changed  hands  at  6is.  ed.  to  62s.  6d.  ;  English  quoted  at  47s.  3d. 
Cotton  (from  our  Manchester  correspondent). — A  limited 
business  has  been  done  in  all  quarters  of  the  market  during  the 
past  week,  and  the  majority  of  traders  have  seemed  content  to 
mark  time.  Considerable  uncertainty  exists  as  to  the  future 
course  of  events,  and  numerous  buyers  and  producers  have  pre- 
ferred to  look  on  pending  further  developments  in  the  situation. 
A  considerable  amount  of  discus  ion  has  transpired  with  regard  to 
raw  cotton  supplies,  and  it  is  realised  that  unless  the  Government 
can  come  to  the  assi  tance  of  Lancashire  in  the  way  of  providing 
more  tonnage  to  bring  cotton  across  the  Atlantic,  then  there 
is  bound  to  be  a  further  reduction  in  consumption.  It  is 
understood  that  certain  discussions  have  taken  place  between  the 


462 


XTbe  Jiivestors'  IRevicw. 


May  II,  1918. 


members  of  the  Control  Board  and  Government  officials  during  the 
last  few  diys,  and  an  official  announcement  as  to  future  policy  is 
awaited  with  much  inttrest  Opeiatives  in  all  branches  of  the 
industry  have  decided  to  apply  for  an  increase  in  wages  of  30  per 
ctnt.,  and  this  move  has  not  caused  any  surprise.  It  is  expected 
that  an  amicable  settlement  of  this  question  will  be  arranged. 
Fresh  features  of  interet  in  the  cloth  market  have  been  scarce. 
Only  a  small  turnover  has  transpired  in  odd  lots.  A  fair  amount  of 
inquiry  has  been  about  for  India,  chitfly  in  bleaching  descriptions. 
Some  mail  advices  from  Ch:na  have  been  rather  better,  but  business 
for  Shanghai  deve'ops  rather  slowly.  An  unimportant  trade  has 
been  reported  for  the  min  r  ouilets  East  and  West.  Manufac- 
turers who  use  bought  yarn  are  finding  it  extremely  difficult  to 
compete  successfully  against  firms  who  both  spin  and  weave. 
There  has  been  less  activity  in  American  yarns  for  home  use  than 
in  recent  previous  weeks  Buyers  and  sellers  are  not  disposed  to 
arrange  contracts  for  distant  delivery,  and  supplies  available  to  bo 
sent  in  at  once  a'e  practically  nonexistent.  Very  few  workable 
bids  have  been  met  with  in  bundle  yarns  for  India.  The  under- 
current of  demand  in  Egyptian  spinnings  keeps  up  fairly  well,  but 
most  of  the  buying  has  been  in  special  qualities. 


American  Business  Notes. 

As  showing  how  keen  the  United  States  Government  is  on 
the  development  of  aviation,  we  note  that  ;^2oo,ooo,ooo  more  is 
to  be  asked  from  Congress  to  be  devoted  to  the  development  of 
the  Air  Service.  This  is  over  and  above  ;^i28,ooo,ooo  a'ready 
spent  or  in  course  of  spending,  so  that  altogether  j;^ 328,000,000 
will  have  been  sunk  within  two  years  in  aircraft  and  in  pre- 
parations for  effective  mastery  in  air  fighting  by  the  United 
States.  Also  ^^445, 000,000  is  asked  for  by  the  Shipping  Board 
to  pay  for  new  ships,  and  when  the  war  ends  the  Anierican 
people  will  possess  one  of  the  finest  mercantile  navies  in  the 
world.  The  fact  that  it  will  do  so  should  be  noted  by  the  Ger- 
mans. Their  ships  will  not  be  required,  even  if  they  had  any 
left,  when  peace  comes  back. 

Do  people  of  large  unearned  incomes  escape  excess  profits 
duty  in  this  country?  We  believe  so,  but  nobody  seems  to 
have  drawn  attention  to  it  here.  In  the  United  States,  how- 
ever, where  the  same  diversity  of  treatment  exists,  it  has  been 
complained  of.  The  New  York  Chronicle  gives  an  example. 
It  takes  an  individual  with  an  income  of  $24,000  per  annum 
all  earned  by  his  services.  That  is  his  salary,  in  short,  and 
under  the  existing  law  he  has  to  pay  a  "  normal "  tax  of  2  per 
cent,  and  an  additional  "  normal  "  tax  of  2  per  cent  to  begin 
with  on  his  total  income,  then  a  sur-tax  of  $664  80  cents,  plus 
an  excess  profits  tax  of  8  per  cent,  over  and  above.  In  all 
he  pays  $2,866  out  of  his  income,  but  the  man  who  has  a 
similar  income  from  investments  gets  off  the  excess  profits  tax 
altogether.  His  initial  percentages  are  somewhat  higher  and 
his  sur-tax  is  also  a  little  higher,  but  altogether  his  income- 
taxes  amount  to  no  more  than  $1,600,  as  against  $1,427 
simijarly  payable  by  the  individual  whose  income  is  just 
earned  salary.  So  that  the  man  whose  revenue  comes  from 
investments  stands  nearly  $1,400  to  the  good.  This  does  not  seem 
fair,  and  the  matter  will  probably  be  adjusted  by  extending  the 
liability  of  the  citizen  in  the  matter  of  paying  war  taxes.  What 
is  the  Government  here   going  to  do  about  it? 

The  first  year  of  the  Federal  Farm  Loans  Banks  Bureau  has 
been  completed,  and  a  report  has  been  issued  giving  an  outline 
of  results.  Altogether  in  the  year  the  12  Federal  Loan  banks 
have  received  applications  for  loans  to  the  amount  of 
$300,000,000.  In  reality  most  of  these  applications  were  received 
in  the  second  half  of  the  year,  because  it  took  tfie  banks  some 
time  to  get  tJieir  machinery  set  up  and  in  op>eration.  Many  of 
the  applications  haie  been  rejected,  reduced,  or  withdrawn; 
but  about  80,000  loans  have  been  approved  of,  amounting  to 
over  $160,000,000,  and  on  over  30.000  of  them  money  has  been 
paid  to  the  farmers  to  the  amount  of  about  half  that  sum. 
Notwithstanding  the  length  of  time  that  elapsed  before  busi- 
ness could  be  begun,  the  results  for  the  year  are  said  to  justify 
the  expectations  of  the  board  that  the  banks  will  easily  be  able 
to  carry  on  their  work  on  a  margin  of  one-half  of  i  per  cent, 
between  the  rate  at  which  they  lend  and  the  rate  at  which  they 
borrow  on  their  own  bonds.  This  may  be  considered  a  satis- 
factory commencement,  and  we  hope  the  banks  will  facilitate 
the  development  of  agricultural  resources  throughout  the 
Republic. 

The  Louisville  and  Nashville  Railroad  did  a  fine  business 
last  year,  and  its  gross  earnings  jumped  to  $76,607,000,  which 
was  fully  $12,000,000  up  compared  with  the  previous  year,  and 
nearly  $23,000,000  more  than  for  1915.  Working  expenses  took 
some  of  these  extra  earnings,  but  not  so  very  much.  They  came 
in  all  to  $52,999,000,  or  68.91  per  cent,  of  the  receipts,  which 
compares  with  64.75  P^''  <"ent.   in  1916  and  71.38  per   cent,    for 

1915.  This  is  without  counting  in  the  taxes,  which  were  very 
heavy    last    year,    nearly    $5,120,000   as   against    $2,428,000   in 

1916.  Consequently  the  nett  income  from  working  was  reduced 
a  little  to  $18,775,000.  Adding  in  the  income  from  investments, 
which  incre.ised  nearly  $200,000  to  $6,203,000,  there  was 
$24,979,000   in   all  available    for    debt    interest,    rents,  sinking 

funds,  and  dividends.  Two  years  ago  there  was  only 
$16,916,000  available,  but  in  1916  the  nett  income  had  sprung 
to  $25,690,000.  Consequently  in  the  last  two  years  shareholders 
have  received  7  per  cent,  as  against  5  per  cent,  two  years  ago, 
and  the  balance  left  has  risen  to  $11,341,000.  It  was  only 
$4,537,000  at  the  end  of  1915. 

the  Lehigh  Valley  Railroad  Co.  earned  $53,358,000  last  year, 


and  its  working  expenses  ainounted  to  $41,826,000.  Nett  income- 
was  therefore  $11,532,000,  a  decrease  of  fully  $2,5oo,cxx),  and 
taxes  were  fully  $300,000  up.  The  company  had  a  larger 
income  from  outside,  however,  its  dividends,  for  instance, 
having  amounted  to  $3,345,000  against  $1,317,000  in  the  pre 
ceding  year,  consequently  the  surplus  was  $1,091,000  after  the 
10  per  cent,  had  been  distributed  on  both  the  preferred  and 
common  shares.  The  preferred  charges,  however,  are  negligible. 
In  1917  the  St.  I'aul,  Minneapolis  and  Omaha  Railway  made 
a  gross  income  of  $21,477,000,  of  which  $15,841,000  was  absorbed 
in  working  expenses,  being  73.70  per  cent,  of  the  earnings  as 
against  65.25  per  cent,  the  previous  year.  Nett  earnings,  how- 
ever, fell  to  $5,635,000,  which  was  less  than  that  of  two  years 
ago,  while  taxes  went  up  by  nearly  $300,000,  and  the  end  of  it 
was  that  the  dividends  had  to  be  reduced  to  5  per  cent,  on  the 
common  stock  instead  of  the  7  per  cent,  previously  distributed. 
This  brought  the  surplus  down  to  $403,000  after  all  was  paid. 


Insurance    News. 

The  North  British  and  Mercantile  Insurance  Company 
suffered  very  heavily  as  the  result  of  the  Salonika  disaster  in 
August  lastj  and  after  making  full  provision  for  the  loss<;s 
sustained  there,  where,  it  is  stated,  the  company  held  the  lead- 
ing position,  and  was  in  consequence  the  heaviest  sufferer,  there 
was  a  debit  balance  of  .1^217,364  on  the  fire  account,  as  con 
trastod  with  a  profit  of  ^^161, 112  in  the  previous  year.  Nett 
fire  premiums  in  1917  came  to  ^{^2,856,401,  an  increase  ol 
^^501,669  over  1916.  In  the  accident  department  nett  premiums 
were  ;i4o,5oi  higher  at  ^^476,876,  and  the  profit,  including 
interest,  was  ^'134,966.  Nett  marine  premiums  at  £-(jo,o^i, 
showed  an  increase  of  ^^210,987,  and  the  underwriting  account 
for  1916  was  closed  with  a  profit  of  .1^^63,958.  I'rcfit  and  loss 
account  showed  a  credit  balance  of  2i>053'°'^>  ^  decrease  of 
^,392, 736,  but  the  company  w'as  able  easily  to  repeat  the  divi- 
dend of  £2  a  share,  carrying  forward  /,86i,768,  or  .^387,009 
less.  The  directors  have  now  completed  the  purchase  of  all 
the  shares  of  the  Fine  Art  and  General  In.surance  Ccmpany, 
with  the  exception  of  two  small  holdings  which  are  in  course 
of  arrangement. 

An  increased  business  was  done  by  the  Liverpool  and  London 
and  Globe  Insurance  Company  in  1917,  the  total  income  ot 
^6,660,841  showing  an  increase  of  ^'592, 512  over  1916,  the  under- 
writing surplus  in  all  departments  being  ;£Si9,927,  an  increase 
of  ^230,398.  The  dividend  is  raised  to  26s.  per  share  for  the 
year,  against  24s.  for  the  previous  year,  and  the  total  assets 
increased  by  ;fi,i3J,439  to  ;i'i6,ooo,793.  Fire  premiums  at 
;^3.5S7.4io  were  /.■294,3oi  more;  losses  at  ^f  1,918,810  (53.94  per 
cent.)  showed  an  increase  of  .1^134,516,  while  expenses  were 
^61,984  heavier  at  ^1,209,582.  The  new  life  business  done  was 
;<^585,495,  an  increase  of  ^^14,426.  In  the  accident  branch 
premiums  came  to  ;^i,48o,  147,  or  .1^^87,757,  against  which  claims 
were  ;f44,o67  heavier  at  £y-fi,2^o,  and  expenses  ;f3i,923  more 
at  ;S^S57,7o5T'  Marine  premiums  increased  by  ;£i68,593  to 
^809,065,  while  claims  were  only  _^62,53i  more  at  .^556,038. 

After  an  interval  of  seven  years,  the  British  Crown  Assurance 
Corporation  has  resumed  the  payment  of  dividends,  the  distri- 
bution for  1917  being  5  per  cent.  Improved  results  were  shown 
in  the  past  year,  an  increase  in  nett  premiums  being  accom- 
panied by  a  substantial  reduction  in  claims  and  expenses.  At 
^'100,862  the  nett  premiums  were  ^2,954  higher,  and  ;f27o  more 
at  jf2,826  was  received  in  interest.  Claims  at  £^i,if>^  showed 
a  reduction  of  ;i$^i3,778,  the  loss  ratio  being  41.5  per  cent., 
as  contrasted  with  56.8  per  cent.  ;  and  expenses  were  reduced 
by  .1^6,570  to  .1^35,503,  the  ratio  being  35  per  cent.,  against 
42.9  per  cent.  Including  ^'1,569  brought  in,  there  was  a 
credit  of  revenue  of  £2c„o)i().  Investments  and  cash  at  ;^i3i,994 
showed  an  increase  of  ;^35,588. 

A  valuation  of  the  life  and  annuity  business  of  the  London 
and  Lancashire  Life  and  General  Assurance  Association  for 
the  five  years  to  December  31  last  disclosed  a  surplus  of 
^^122,626,  icluding  ;f4,2i2  brought  in.  Of  this  amount  £(>3,'ib<) 
is  written  off  investments,  and  ;fi2,ii3  is  carried  to  invest- 
ment reserve  fund.  Interim  bonuses  absorbed  ;f  11,566,  and  pro- 
prietors' 5  per  cent,  dividend  and  proportion  of  interim  bonuses 
^17,106,  or  a  total  of  ;fio4,i56,  leaving  ^^18,470  to  carry  for- 
ward. The  increase  of  income-tax  cost  ^25,880,  and  the  mortality 
loss  due  directly  to  war  claims  was  ;f57,764.  There  will  be 
no  allotment  of  reversionary  bonus  to  policies,  but  an  interim 
bonus  at  the  rate  of  £1  per  cent,  in  the  case  of  deferred  bonus 
policies,  and  at  the  rate  of  15s.  per  cent,  in  the  case  of  ordinary 
with-profit  endowment  policies  maturing  during  the  current 
quinquennium,  is  recommended.  These  bonuses  are  declared 
for  the  first  year  of  the  current  quinquennium,  and  are  subject 
to  revision  from  year  to  year.  An  increased  life  business  was 
done  in  1917  ;  2,016,  against  1,167,  policies  were  issued,  assur- 
ing /'90i;,309,  or  ;^274,io8  more  than  in  1916.  As  regards  the 
fire  business,  the  loss  ratio  worked  out  at  43  per  cent,  of  the 
premiums,  against  45.5  per  cent,  in  the  previous  year. 


Occasionally  items  of  news  appear  which  should  give  our 
Protectionists  something  to  think  about.  Here,  for  instance, 
is  the  latest  about  the  Australian  Customs  revenue,  which  rose 
/'i5r,42i  for  April,  but  for  the  ten  months  to  that  date  fell  off 
;f  1,652,000  compared  with  last  year.  Is  not  that  inevitable? 
The  buying  power  of  any  country  depends  on  its  selling  power. 
After  the  war  selling  power  will  be  restricted  all  round  because 
for  a  time  production  will  be  reduced,  and  every  one  will  bt? 
anxious  to  buy  as  little  as  possible. 


May  II,   19 18. 


Zbc  investors'  IRevlew^ 


463 


PUBLIC     INCOME     AND    EXPENDITURE. 


The  following  are   the  recMpts  into   and   issues  out 
Exchequer  between  April  1,  1918,  and  May  4,  1918: — 


of    the 


Balances   in    Exchequer    on 

April  I— Bank  of  Engl.\nd  . , 

Bank  of  Ireland    . . 


Revenue. 

Customs  

fizcise  

Estate,  &c.,  Duties 

Stamps 

Land  Tax ) 

House  Duty    I 

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Duties,  &c 

Land  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    froii>.    Sundry 

Loans,  &c 

Miscellaneous 


Revenue 
Total 


Estimate 

for  the 

Year 

1918-1919. 


I  Total  Keceipts 

into  the 
Exchequerfrom 
April  I,  1918.  to 

i    May  4,  1918. 


1,663,452 


21,030,030 


7,170,000 

^, 592,000 

2,759,000 

6a3,ooo 

215.000 


18,551,000 

25,660,000 

50,000 

2,900,000 

50,000 

895 

944.3*^8 


62,575.203 


Other  Receipts. 

Repayment  of  Advances  for  Bullion   

For  Treasury  Bili«(tor  supply)    

For  5  per  Cent.  Exchequer  Botids.  1922    ... 
For  3  per  Cent.  Excheq  ler  bonds,  1930    ,, 

For  War  Savings  Certificates , 

For  other  Debt  (VVar  Loan  Acts,  1914-1917) 
For4  per  Cent.  War  Lo  in,  1929-1942,  and  5  per 

Cent.  War  Loan,  1929-1947    

For  National  War  Bonds    

Temporary  Advances — Ways  and  Means. . . , 


Total  . 


83,605,233 


430,000 
421,366,000 

799,500 
10,300.000 
49,600,912 


♦79,066  000 
91,500,000 


737,667,645 


Total   Keceipts 

into  the 

Exchequerfrom 

April  t,  1917,  to 

May  5,  1917. 


25.2  9.947 
1,225,912 


26  435,8  9 


6,627.000 

3,665  OJO 

2,739,000 

482,000 

230,000 


15,896,000 

17,385,000 

9  ',000 

2,900,000 

50,000 

500 
534,336 


50.^9'*.836 


77,034,6>5 

230,000 
I92,'39,ooo 
18,839,000 

4,2  0,000 
41,972,718 

71,500  0"0 

78,055.000 


483,970,413 


'Excluding  sales  through  joint  stock  and  private  banks  not  yet  orought  to  account. 


Expenditure 
and  other  issubs. 


Estimate  for 
the  Year 

1918-19. 


Total  Issues 
out  of   the  Ex- 
chequer to  meet 
payments   from 
April  I,  1918,  to 

May  4,  :9i8. 


Expenditure. 
Permanent  Charge  of  Debt  ,. 
Interest,  Ac,  on  War  Debt  . . 
Payments  to   Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    


Expenditure 


Other  Issues. 

For  Advances  for  Bullion  . _ 

For   Advances    for    Interest    on    Exchequer 

Bonds     under    the     Capital     Expenditure 

(Money)  Act,  1914    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Housing  Act,  1914 

For  Treasury  BilU  for  Supplv 

For  War  Loan^:,  Exchequer  Bonds,  &c., under 

Section  ^4  of  Finance  Act,  1917  

For  War  Expenditure  Certificates  under  War 

Loan  Act,  1916    . , , , 

For  other  Debt  unoer  the  War  Loan  Acts, 

I9M  to  1917 

For  Depreciation  Fund  under    the    Finance 

Act,  1917  

Old    Sinking    Fund,    1910-11.    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  (b)  .. 
Temporary  Advances  repaid— Ways  and  Means 


I      1918. 
May  4. 
balances  in  Exchequer —  £ 

Bank  of  England 12,890,796 

Bank  of  Ireland j    1,962,389 


1917. 

May  5. 

22, --67,682 
1.085,399 


Total . 


£ 

2,706,446 
16.368,283 

190,000 

242,079 

244. 228,6.^0 


263,735.408 


84,909 

12,000 

106,300 

1436,078,000 

4,807,909 

fu,8oo 

6,598,112 

2,C6o,022 

20,  coo 
8,000  000 


722,814,460 


14-853,185 


737,667,645 


lotai  liisueb 
out  of  the   Ex- 
chequer to  meet 
payments    from 
April  I,  1917,  lo 

May  5,  1917, 


f. 
3,196,656 
6,088,071 

190,000 

240,306 

247,866,400 


257.581,433 


360,000 


84,909 

20,000 

175,400 
119,251,000 

24,590 


83,320,000 


460.817,332 


23,153,081 


483,9;o,4i3 


Memo.— Treasury  Bills  outstanding  on  May  4, 1918 */;^958,i35,ooo, 

*  Includes  £265,000,  the  proC2eds  of  which  were  not  carried  to  the  Exchequer 
within  the  period  of  the  account,  besides  a  part  (not  yet  asciirtained  and 
brought  to  account)  of  the  Bills  tendered  as  subscriptions  to  National  War  bon  is. 

\  Includes  part  payment  of  Bills  and  Certificates  tendered  as  subscriptions 
io  National  War  Bonds 


DIVIDENDS    ANNOUNCED. 


Asbestos  Corporation  o£  Canada. — Quarterly,  $i  per  shaxe, 
<ir  at  rate  of  4  per  cent,  per  annum,  on  preferred  shares,  pay- 
able May  15. 

liritish   Ever  Ready. — Final  on   preference  shares  at  rate  of 

10  per  cent,  per  annum  for  half-year  to  March   31,  making    10 

I  per  cent,  for  year  ;  a  final  on  ordinary  shares  at  rate  of  10  per 

■cent,  per  annum,  plus  a  bonus  of  7J4    per  cent.,  making    iy% 

per  cent,   for  the  year. 

Bombay,  Baroda  and  Central  India  Railway  Co. — In  addition 
to  half-year's  guaranteed  interest  of  £1  ids.  per  cent.,  a  final 
jf  I  los.  per  cent.,  together  with  a  bonus  of  303.  per  cent.,  for 
year  ended   March  31,   making  a    total  payment  in   July  next 


of  £4  los.  per  cent.,  less  tax ;  £6  los.  per  cent.,  less  tax,  for 
whole  year,  as  compared  with  £^  15s.  per  cent,  for  the  previous 
year. 

Bombay  Gas  Co. — Final  at  rate  of  4J4  per  cent.,  less  tax, 
making  8  per  cent,  for  1917,  against  7 14  per  cent.,  payable 
on  June   1. 

Commercial  Union  Assurance  Co. — 14s.  per  share,  tax  free, 
making  with  interim  28s.  per  share  for  1917. 

Calcutta  Electric  Supply  Corporation. — Final  for  half-year 
ended  December  31  of  6%  per  cent.,  actual,  making  10  per  cent. 
for  the  year,  against  g%   per  cent.,   payable  May  30. 

Wm.  Cory  and  Son. — Final,  6  per  cent.,  less  tax,  on  ordinary 
and  employees'  shares,  making  10  per  cent.,  less  tax,  for  year 
ended  March  31,  together  with  a  tax  free  bonus  of  10  per  cent. 

Diamond  Blower. — At  the  rate  of  10  per  cent,  per  annum  for 
six  months  ended  March  4,  together  with  a  bonus  of  2%  per 
cent.,  making  a  total  of  12%  per  cent.,  less  tax,  for  the  year. 

Industrial  and  General  Trust. — At  the  rate  of  12  per  cent, 
per  annum,  less  tax,  for  half-year  to  March  31,  making  10  per 
cent,  for  year,  the  same. 

Industrial  and  General  Trust. — On  ordinary  stock  at  rate  of 
12  per  cent,  per  annum,  less  tax,  for  half-year  to  March  31, 
1918,  making  10  per  cent,  for  whole  year. 

Kuala  Lumpur  Rubber  Co. — For  year  to  June  30  an  interim 
of  10  per  cent.  (2s.  per  share),  payable  without  deduction  of 
income-tax. 

London  Scottish  American  Trust. — Interim  of  3  per  cent,  on 
deferred  stock,  payable  June  i,  the  same  as  a  year  ago. 

Marine  Insurance  Co. — £2  5s.  per  share,  less  tax,  for  1915. 
To  reserve  ;^5o,ooo,  which  will  then  amount  to  ;^6oo,ooo. 

National  Bank  of  Australasia. — 7  per  cent,  per  annum  for 
half-year  to  March  31  on  preference  and  ordinary  shares,  same 
as  a  year  ago ;  ^£25,000,  against  ;f  20,000,  to  reserve. 

Otis  Steel  Co. — Final  2%  per  cent,  on  common  stock,  making 
10  per  cent,  for  1917,  together  with  a  bonus  of  10  per  cent.,  both 
payable  June  29. 

Philadelphia  Co. — Quarterly,  1%  per  cent,  on  the  common 
stock,  payable  May  15. 

Rukruba  (Nigeria)  Tin  Mining  Co. — is.  per  share,  less  tax, 
payable  about  May  24.    This  is  the  company's  first  dividend. 

Royal  Mail  Steam  Packet  Co. — Balance  of  5  per  cent.,  less 
tax,  on  ordinary  stock,  making  7  per  cent,  for  the  year,  the 
same  as  last  year. 

Royal  Insurance  Co. — Final,  15s.  per  share,  less  tax,  to  be 
paid  May,  28,  making  30s.  per  share,  less  tax,  for  1917,  against 
28s.    per  share,   less  tax,  for   1916. 

Santa  Catalina  Nitrate  Co. — Interim  of  y%  per  cent,  or  is.  6d. 
per  share,  less  tax,  payable  on  May  31,  same  as  last  year. 

Sun  Insurance  Office. — Final  for  1917  of  7s.  per  share,  less  tax, 
payable  on  July  4,  the  same  as  a  year  ago. 

Sungei  Batu  (Malaya)  Ktibber  Estates.— Final  y%  per  cent., 
making  12^  per  cent,  for  year,  against  15  per  cent 

Union  Insurance  Society  of  Canton. — Final  of  S20  and  a 
bonus  of  810  per  share  for  1916.  An  interim  of  $30  per  share, 
and  a  bonus  of  20  per  cent.,  will  be  paid  on  contributory  pre- 
miums for  1917. 

United  Insurance  Co. — Interim  for  half-year  to  March  31  at 
rate  of   10  per  cent,  per  annum, 

Windsor  (F.M.S.)  Rubber  Estate.— Final  12H  per  cent.,  mak- 
ing 20  per  cent,  for  year,  against  17^2  per  cent. ;  forward, 
;,f3,o96,  against  ^^3,221. 


OILFIELDS     PRODUCTION. 

Anglo-Egyptian  Oilfields. — Week  ended  April  28  :  Gemsah,  iS 
tons,  against  20  tons ;  Hurghada,  4,433  tons,  against  4,796  tons. 

British  Burmah  Petroleum. — Total  crude  oil  by  company  and 
Rangoon  Oil  Co.  was  75,410  barrels  for  April. 

Kern  River  Oilfields'of  California.— April  :  132,142  barrels,  or 
17,449  t°"5j  including  78,072  barrels  from  St.  Helens  Petroleum 
Co. 

Lobitos  Oilfields.— April,  7,162  tons. 

Trinidad  Leaseholds. — April,   14,200  tons. 

United  British  Oilfields  of  Trinidad.— 906  tons  for  week  ended 
May  I. 


It  was  said  lately  in  the  Budget  Committee  of  the  Reichstag 
that  Germany  has  lost  "  half  her  mercantile  navy,"  Jind  prob- 
ably that  is  a  statement  not  far  from  the  truth.  And  it  will 
be  a  permanent  loss,  we  take  it,  for  Germany's  efforts  to  replace 
that  tonnage  have  not  so  far  amounted  to  much,  if  sundry  facts 
of  the  Times  correspondent  at  the  Hague  may  be  taken  as 
evidence.  Herr  Ballin  seems  to  have  .started  a  new  shipbuild- 
ing yard,  containing  six  slips,  at  Hamburg,  but  up  to  the  end 
of  August  last  only  one  of  the  slips  was  occupied  to  build 
standard  steamers.  Work  was  to  begin  on  October  1,  but 
whether  it  has  been  or  not  is  not  stated.  The  Hamburg-South 
America  Co.  is  said  to  be  building  an  improved  sister  ship  to 
the  sunken  i8,ooo-ton  Cap  Trafalgar,  as  well  as  four  other  large 
vessels,  but  the  figures  as  a  whole  now  published  vary  little  from 
those  issued  in  August,  iqi6,  or  nearly  two  years  ago.  And 
really  it  is  not  surprising  that  the  shipbuilding  industry  should 
be  slack,  and  the  output  insignificant  in  Germany,  for  what  are 
German  merch.ints  to  do  with  the  ships  when  they  get  them? 
They  will  not  be  allowed  to  enter  any  port  of  any  civilised 
country  in  the  world  until  reparation  has  been  made  for  the 
abominable  crimes  and  enormous  losses  the  Germans  have 
perpetrated  and  caused  during  the  war. 


464 


Ube  Jnvestors'  IRevlew. 


May   ji,   1918. 


Tea,  Oil  and  Rubber. 

Last  week  1,275  *°"^  °^  rubber  were  landed  (in  spite  of  ship- 
ping restrictions  and  the  fact  that  in  some  places  there  are 
still  tea  queues),  while  only  790  tons  were  de'ivered,  leaving 
the  stock  at  16,870  tons,  against  10,600  tons  a  year  ago.  Under 
the  circumstances,  it  is  not  surprising  that  the  price  of  stan- 
dard cr6pe  at  one  time  fell  to  2s.  J^d.,  and  although  there 
has  since  been  a  slight  recovery,  it  does  not  amount  to  much 
more  than  a  farthing.  Meantime,  the  United  States  have  put 
an  embargo  on  imports  for  the  next  three  months,  and  have 
also  fixed  price  limits.  These  developments  may  be  regarded 
as  an  irresistible  justification  of  the  Rubber  Growers'  Associa- 
tion policy  in  restricting  output.  Possibly  it  may  be  so,  but 
from  the  very  start  of  the  scheme  we  have  insisted  that  the 
results  wou'.d  probably  be  diametrically  opposite  to  those  anti- 
cipated, and  the  harvest  is  now  being  reaped.  Cause  and  effect 
are  usually  difficult  things  to  trace,  but  it  is  nearly  always 
certain  that  when  deliberate  measures  are  taken  to  destroy  con- 
fidence, the  reaction  will  carry  farther  than  if  matters  had  been 
left  to  follow  their  own  natural  course.  That  is  what  the 
rubber  market  is  suffering  from  at  present,  and  we  do  not  see 
any  daylight  immediately  ahead.  Things  will  no  doubt  settle 
down  to  a  proper  commercial  level  sooner  or  later  (and  that  is 
the  best  solution,  as  we  have  often  urged),  but  meantime  the 
industry  looks  like  being  terribly  disorganised,  and,  so  far 
as  we  are  able  to  judge,  every  step  taken  has  been  backward. 
Of  course,  it  may  be  urged  that  without  the  restrictive  policy 
conditions  would  have  been  worse  at  the  moment,  and  we  do 
not  dispute  it.  But  will  they  be  better  six  or  twelve  months 
hence?  It  is  impossible  to  say  with  any  confidence;  we  can 
only  deduce  probabilities  from  past  experience,  and  that  is 
dead  against  the  idea  that  the  tail  wags  the  dog. 

Without  going  into  all  the  details  of  the  scheme  put  forward 
by  Harrisons  and  Crosfield,  Limited,  this  week,  we  may  say 
that  the  main  effect  is  to  raise  the  dividend  on  the  preference 
shares  from  5J  per  cent,  to  6  per  cent.,  and  to  make  the  whole 
of  the  dividend  on  the  10  per  cent,  preferred  ordinary  cumula- 
tive, instead  of  only  half,  as  at  present.  These  are  valuable 
concessions  to  the  public,  who  are  mainly  interested  in  these 
two  classes  ol  shares,  and  the  rights  to  be  surrendered  in  re- 
turn are  more  sentimental  than  real.  There  is  a  preference  re- 
serve fund  of  /■  102,500,  which  it  is  proposed  to  absorb  in  the 
general  reserve,  in  order  that  it  may  be  capitalised  and  dis- 
tributed among  the  holders  of  the  management  shares  in  the 
shape  of  deferred  shares.  As  the  preference  dividend  is  secure 
beyond  all  possibility  of  question,  apart  from  some  sort  of 
financial  earthquake,  which  is  most  improbable  (and  if  it 
occurred  the  reserve  would  be  of  precious  little  use),  the  surren- 
der of  the  reserve  fund  is  of  no  practical  importance,  while  the 
increase  in  the  dividend  in  these  days  of  high  income-tax 
ought  to  be  regarded  as  a  very  useful  help.  The  preferred 
ordinary  holders,  of  course,  are  not  in  quite  such  a  good  posi- 
tion, but  to  get  their  whole  dividend  made  cumulative  may 
conceivably  be  of  considerable  importance  one  of  these  days. 
The  public  are  not  interested  in  the  management  shares,  to 
which  the  balance  of  the  profits  belongs,  and  it  makes  little 
difference  how  the  surplus  may  be  divided  up  or  what  the  re- 
versionary rights  may  be  called.  The  scheme  is  somewhat  com- 
plicated, but  that  does  not  affect  outsiders,  and  the  terms 
offered  to  the  public  to  facilitate  domestic  arrangements  appear 
to  be  generous. 

Shareholders  in  the  Rubber  Plantations  and  Investment 
Trust,  Limited,  are  invited  to  make  deposits  at  6  per  cent, 
interest  with  the  company  in  multiples  of  ;^io,  which  may  be 
converted  into  shares  after  the  war,  either  at  the  option  of  the 
holder  or  the  company.  The  scheme  is  ingenious  as  a  means 
of  raising  additional  capital  at  a  time  when  the  Treasury 
Committee  on  new  issues  may  be  confidently  relied  upon  to 
give  a  wrong  decision  on  every  proposition  submitted  to  it,  and 
the  only  criticism  we  have  to  offer  refers  to  the  power  which 
the  company  retains  to  repay  deposits  in  shares  at  par  if  it 
should  not  be  convenient  to  pay  in  cash.  On  the  other  hand, 
free  options  are  not  desirable  as  a  rule,  and  the  company  is  pro- 
bably right  in  keeping  a  certain  freedom  of  action.  There  need 
be  no  mystery  about  why  the  company  should  require  more 
capital.  It  is  not  only  a  "  trust  "  in  the  ordinary  sense,  but 
it  hojds  very~large  rubber  estates,  which  it  is  bringing  into  the 
produ'cing  stage,  and,  of  course,  that  costs  money,  while  every- 
thing is  outlay,  and  there  is  no  revenue  coming  in. 


An8v«^eP8  to  Coprespondents. 

Regent. — The  company  wants  money  to  develop  its  pro- 
perties, and  this  seems  the  best  way  of  getting  it.  We  think 
you  might  lend  the  sum  named.     See  note  elsewhere. 

A.  A.— (i)  ITiese  have  already  gone  up,  and  are,  we  think, 
about  dear  enough.  (2)  These  have  doubled  in  price  since  the 
war  began.  The  company  is  a  fine  one,  but  it  is  too  late  to 
buy  now  with  confidence. 

Ren.— (1  and  2)  Yes.  (3)  Doubtful.  Chance  of  dividend 
rather  small,  especially  in  view  of  the  attitude  of  the  Govern- 
ment.     (4)   Yes ;    this  should   be  right  enough. 

A.  R.  B. — We  do  not  think  you  should  sell.  The  security  is 
quite  a  good  one. 

H.  C.  T. — (i)  Prospects  are  not  very  rosy,  the  war  has 
upset  the  business  altogether.  (2)  We  know  nothing  of  this, 
except  there  is  no  market  for  the  shares.  We  do  not  think 
you  can  sell  either  of  these  just  now. 

Danae. — Wait ;  there  will  probably  be  opportunities  of  buy- 
ing more  cheaply. 

B.  D.  X. — The  charge  is  quite  correct.  There  is  a  consider- 
able amount  of   work  involved. 

Mons. — Yes,  certainly.  You  can  give  instructions  for  the 
reinvestment  on   your    application   form. 

Sarma. — (i)  Is  doing  quite  well,  and  an  increase  in  dividend 
is  expected.  The  mine  has,  it  is  said,  a  fair  life,  but  you 
should  write  them  down  out  of  dividends  if  you  act  prudently. 
(2)  These  are  quite  speculative  and  not  an  investment,  so  we 
cannot  recommend    a  purchase. 

F.  M.  R. — Not  now.  Chances  of  further  gain  not  big  enough 
to  justify  a  purchase   at  current  quotations. 


By  all  accounts  the  luxury  tax  imposed  by  the  French  Gov- 
ernment is  not  turning  out  well.  It  causes  friction  and  stops 
business  in  all  directions.  As  one  Deputy  put  it,  "  you  cannot 
compel  foreigners,  who  are  our  best  customers,  to  abandon 
luxuries.  They  will  merely  buy  them  in  other  countries,  and 
the  existing  law  leaves  the  door  open  wide  to  all  sorts  of  fraud 
and  evasion."  It  is  suggested  that  instead  of  this  tax  it  would 
be  better  to  increase  the  income-tax,  or  to  impose  a  tax  on  the 
gross  turnover,  or  a  universal  tax  on  all  payments.  This  ex- 
perience and  these  views  ought  to  be  noted  by  our  Government 
before  it  proceeds  to  elaborate  a  new  tax  harrow. 


The  Week  in  Minos. 

The  Mining  markets  have  been  quite  buoyant  this  week, 
despite  the  political  crisis,  and  business  has  been  fairly  active. 
Substantial  rises  are  shown  in  all  departments,  but  these  are 
to  be  attributed  as  much  to  shortage  of  stock  as  to  increased 
demand.  A  significant  feature  in  the  South  African  market 
has  been  the  recovery  in  City  Deeps,  after  a  long  period  of 
depression  due  to  unfavourable  developments.  Buying  of  tin 
shares  has  been  stimulated  by  an  advance  in  the  price  of  the 
metal  to  £3^(1,  a  fresh  high  record. 

South   and  West  Africans. 
The  strength  of  South  Africans  was  led  by  City  Deeps,  which 
were  freely  bought,  and  rose  13-32  to  3-1'j,  though  no  news  has 
yet  been   received   to  account  for  these   purchases.     The    Gold 
Fields  group  revived  simultaneously  almost  on  a  mineral  rights 
decision   in    favour   of    the   American   Trona   Corporation,    an 
Alkali   subsidiary,   which   is    reported    as   likely   to   begin   dis- 
tributing profits  shortly.     Gold  Fields  have  risen  5-32  to  1  23-32. 
Gold    Mines   Investments   3s.    gd.  to  24s.   gd.,   and   Gold   Trusts 
6s.   3d.   to  31S.    3d.     Crown   Mines  have  spurted   ij-32    to    -fi. 
which  caused  Central  Minings  to  advance  %   to  6,  and  Rand 
Mines  -pg  to  2fi.     New  Modderfonteins   have  risen  i  to  23  on 
an    announcement   that   the   additional    reduction    plant    began 
working  last  month.     Modder  B's  at  7^,  Modder  Deeps  at  yii. 
Brakpans   at  4f|,   and    Rand    Selections   at  4^    all  show  sub- 
stantial rises,  while  Robinson  Deeps  are   ^  higher   at   i}i.     It 
is  understood  that  the  Robinson  Deep  Mine  will  shortly  draw 
the  balance   of  the   loan    which  the   Gold   Fields  Co.   and   the 
Central  Mining  Corporation  agreed  to  lend  it.     The  compan>' 
is  expected  to  pay  half  the  dividend  due  on   the   "A"  shares 
in   June,  leaving  ^^150,000  in  arrears.     It  is  believed  that  the 
mine  position  generally  has  improved.     The  Turffontein  Estates 
have  been  bought  for   100,000  "  B  "  shares.     Rhodesian  shares 
have    been    supported,    notably    Chartereds    at     15s.    gd.    and 
Rezendes,  which  have  risen  f^  to  4%.     Lonely  Reefs  have  im- 
proved to  33s.  6d.     In  the  Diamond  group,  De  Beers  deferred? 
have   risen    %    to    12^.      Among    West   Africans,    Gold    Coast 
Amalgamateds   rose    is.   3d.   to  21s.   3d.,    in   view  of  the   Trona 
holding,  though   the   report  was  regarded  as  disappointing. 
Copper  and   Misceu.aneois. 
Copper  shares  have  participated  in  the  general  upward  move- 
ment, especially   Mount  Elliotts,  which   are    %   higher  at  3I4. 
Tin  shares  have  shown  marked  strength.     East  Pools  have  risen 
ci-32   to    i-|%,    South    Croftys   7-32   to    221-32,    Dolcoaths    3s.   to 
13s.   gd.,   and   Kaduna,  on  the   increased  dividend,  2s.   6d.   to 
20s.     Rukuba  at    8s.    6d.    was  scarcely   affected   by  a    maiden 
dividend  declaration,  the  distribution  having  been  discounted, 
and  Champions  at  7s.  3d.  failed  to  respond  to  the  interim  just 
declared.    Anglo-Continentals  have  risen  sharply  to  i6s.  6d.,  and 
Forum  Rivers  at  22s.  and  Tin  Fields  of   Northern  Nigeria  at 
8s.  3d.  are  appreciably  higher.    Tincroft  ordinaries  have  fallen 
to   IIS.,   but    the  priority  shares  have    lisen  to  25s.   6d.  on  a 
proposal  to  convert  the  latter  into  ordinary  shares  in  the  pro- 
portion of  one  priority  for  three  ordinary  shares.     The  Pahang 
Co.'s  excess  profits  duty  percentage  has   been  fixed  at   16   per 
cent.,    against    13   per    cent,    for    Malayan   companies    engaged 
purely  in  winning  tin,  and  the  shares  are  consequently  harder 
at  13s.    Broken  Hills  have  been  a  strong  market,  the  price  fixed 
in  the  zinc   contract  being  very  favourable   to  the  companies. 
British  have  risen  3s.  3d.  to  45s.,  Proprietarys  is.  6d.  to  67s.. 
Block  Tens  2s.  3d.  to  36s.,  Souths  }i  to  to}4,  and  Zincs  is.  3d. 
to   22s.   gd.     Russian  shares   have  recovered  somewhat,   Russo 
Asiatics  being  prominent  with  a  rise  of  7-32  to  2   5-32.     There 
h.is   been   a  fair  demand   for    Indian    gold   and   other    shares. 
Kanbauk   Wolframs  have  risen   7s.   3d.   to  33s.    3d.,  though  the 
April  output   shows  a  decrease  of  six   tons  on   1917.     Mysore? 
have  been  wanted  at  2-^. 


May  II,    1918. 


^be  Jnvestors'  IRevicw. 


465 


MINING  NEWS. 

West  African  Gold  Output.  — In  March  the  production 
of  gold  was  ;fii2,6o5,  or  ;^26o  less  than  in  February,  and 
;^42,i22  less  than  in  March  last  year.  The  following  table  shows 
the  monthly  production  since  January,  1914. 


COMPANY  MEETINGS. 


Month. 

1918. 

1917. 

I9I6. 

1915. 

1914. 

I 

£■ 

i 

£ 

c 

Jan.     .. 

107  863 

I3«.663 

'40,579 

143.649 

128862 

Feb.    .. 

112.865 

104,892 

137,739 

■44.034 

123,169 

Mar.    .. 

112  605 

158,727 

150,957 

1^3,770 

131,392 

April    . . 

— 

123,825 

135,976 

149,978 

131,697 

May     .. 

— 

121,104 

■32,9;6 

142,121 

145,227 

June    .. 

— 

114,489 

127,107 

135,289 

147,289 

July     . 

— 

142,017 

128,574 

140,290 

1 5  ,923 

Aug.    . . 

— 

130,278 

125,143 

139.364 

150,386 

Sept.   .. 

— 

127,168 

127,138 

135,744 

154.316 

Oct.     . 

— 

126,!95 

132,577 

141,771 

159,410 

Nov.    .. 

— 

126,915 

130,101 

122,138 

154,674 

Dec.    .. 

— 

122,602 

146,419 

158,323 

147,699 

Totals 

333,333 

1,529,977 

1,615,306 

1. 706,473 

1,727,044 

Champion  Tin. — The  accounts  for  the  year  ended  June  30, 
191 7,  show  a  loss  of  ^^48,  and  the  dehit  balance,  after  providing 
for  income-tax  for  1912-13-14,  is  increased  to  ^6,434.  Since 
the  close  of  the  year  the  directors  have  sold  some  portion  of 
the  shares  held  by  the  company  at  a  considerable  profit,  and  they 
therefore  propose  to  p»ay  an  interim  dividend  of  10  per  cent., 
free  of  tax. 

City  and  Suburban. — During  191 7  the  revenue  from  gold 
amounted  to  ;<^S27,o77,  as  compared  with  ^^601,924.  This  de- 
crease was  due  to  a  falling  off  in  the  tonnage  treated  of  nearly 
20,000  tons,  the  total  being  306,450.  The  yield  per  ton  de- 
creased by  2s.  6d.  to  34s.  4d.  per  ton,  and  as  costs  increased  by 
IS.  8d.  to  23s.  lid.,  the  profit  was  4s.  3d.  less  at  los.  4d.  per 
ton.  A  t«tal  profit  of  ;,f  159,472  was  made  against  ^238,545,  and 
after  paying  8s.  per  share  in  dividends  against  los.  per  share, 
;,fi8,792,  against  ^^22,518,  is  left  to  be  carried  forward.  The 
ore  reserves  have  decreased  from  602,200  tons,  valued  at 
8.8  dwts.,  to  511,900  tons,  valued  at  7.7  dwts.  This  total  in- 
cludes 35,000  tons  contained  in  the  Village  Deep  boundary  pillar 
purchiEtsed  during  the  year  for  j{^6,ooo. 

New  Heeiot. — The  gold  output  in  1917  was  £2$6,yji),  against 
^282,033.  There  were  treated  155,800  tons,  a  decrease  of 
4,900  tons,  and  the  yield  declined  by  2s.  2d.  to  32s.  iid.  per 
ton  owing  to  the  lessening  value  of  the  ore  now  met  with. 
Costs  rose  is.  id.  to  23s.  6d.  per  ton,  and  the  rate  of  profit 
decreased  from  12s.  7d.  to  9s.  4d.  per  ton.  The  profit  was 
^^73,270  against  ;^ioi,5o7;  the  dividend  is  reduced  from  75 
to  55  percent.,  and  the  carry  forward  is  jf  1,428  less  at  ^^119,132. 
Reserves  of  ore  have  decreased  from  477,767  tons  to  334,977  tons, 
but  the  value  is  7.14  dwts.,  against  7.6  dwts. 

Sudan  Gold. — Although  the  value  of  the  gold  produced  in 
1917  was  ^^525  larger  than  in  1916  at  ;,f55,047,  the  profit  was 
;f 7,880,  less  at  ^11,194.  This  was  due  to  the  fact  that  a  larger 
quantity  of  ore  was  treated  for  practically  the  same  output,  the 
grade  of  ore  having  fallen  from  10  dwts.  to  8  dwts.  per  ton. 
No  dividend  is  declared,  whereas  a  year  ago  is.  per  share 
was  distributed  on  account  of  1916.  The  available  balance  is 
;^i6,i3o,  of  which  ^^3,562  is  provisionally  required  to  meet  the 
excess  f-irofits  duty  for  1916,  ^^3,441  is  written  off  for  deprecia- 
tion, and  j^6,ooo  is  absorbed  in  various  items  of  mining  and 
general  expenditure,  leaving  only  .^1,649  to  be  carried  forward 
against  .^4,936. 

Basset. — The  report  of  tiiis  Cornish  tin  mine  contrasts  very 
unfavourably  with  similar  concerns.  No  less  than  jf 6 1,000  was 
spent  in  earning  ^59,478,  with  the  result  that  a  loss  of  ..f  1,523 
is  shown,  which  increases  the  debit  balance  to  ;,f23,422.  Black 
tin  sold  decreased  by  114  tons  to  457  tons;  the  amount  realised, 
however,  was  only  ^^728  less  at  ;i's9,57o,  the  price  per  ton 
averaging  ^130  7s.,  an  increase  of  ^^30  3s.  9d.  The  loss  is 
accounted  for  by  shortage  of  labour,  causing  a  decrease  in 
the  amount  of  ore  treated,  which  was  5,935  tons  less  at 
26,486  tons. 

ESPEKANZA  Copper  and  Sulphur. — The  output  of  pyrites  in 
1917  was  86,633  tons,  a  decrease  of  no  less  than  22,092  tons. 
One  hundred  and  four  tons  of  copper  precipitate  were  produced, 
a  decrease  of  23  tons,  and  railway  shipments  of  pyrites  to 
Huelva  decreased  8,848  tons  to  93,258  tons.  Profits  amounted 
to  ;f2o,368,  and,  inclusive  of  2^5,886  brought  in,  the  total 
balance  is  ;,f26,254.  No  dividend  is  to  be  paid,  and  after 
writing  ^^8,356  off  mine  development,  .^17,897  is  carried 
forward. 

Kaduna  Syndicate.— The  profits  for  the  year  to  October  31, 
subject  to  excess  profits  duty,  were  ^.f  12,974  against  .^9,787.  Of 
this,  ;^i,822  is  written  off,  the  general  reserve  gets  £1,^0^, 
making  it  equal  to  the  share  capital,  and  a  final  dividend  of 
30  per  cent,  is  to  be  paid,  making  50  per  cent,  for  the  year, 
against  35  per  cent.,  and  ^^4,198  is  carried  forward.  The  out- 
put was  18  tons  less  at  210  tons,  but  the  average  price  per  ton 
of  metallic  tin  was  ;^246  is.,  against  .^187  17s.   in  1916. 

Amalgamatkd  Zinc. — Ehiring  the  half-year  ended  December  31 
this  company  produced  24,387  tons  of  zinc  concentrates  and 
928  tons  of  lead  coiKientrates.  Profit  on  working  account  was 
^^20,214,  which  includes  ^^14,231,  being  increased  profit  in 
respect  of  adjustments  on  concentrates  shown  in  previous 
periods.  The  total  profit  was  .^27,574,  as  compared  with 
;fi26,673  in  the  previous  six  months.  It  is  explained  that 
dividend  No.  22  was  paid  out  of  last  year's  profits,  and  divi- 
dend No.  23  and  also  £8,S^2  transferred  to  depreciation  reserve 
have  been  charged  to  the  current  and  last  year's  profits,  leaving 
no  balaiKe  in  the  appropriation  account. 


SCOTTISH    UNION    AND    NATIONAL 
INSURANCE    CO. 

YEAR'S  RECORD    RESULTS. 
The    annual    general    meeting   of    the    Scottish     Union    and 
National     Insurance    Company    was    held    at    Edinburgh    on 
Wednesday,  Mr.  Harry  George  Younger  (chairman  of  the  com- 
pany)   presiding. 

The  Chairman  said  ;  A  year  ago  my  predecessor  in  office  had 
the  satisfaction  of  submitting  to  you  a  report  which  constituted 
a  record  in  the  company's  history.  I  am  more  than  pleased 
to  be  able  to  say  that  during  1917  we  even  improved  upon  that 
achievement,  and  you  have  now  before  you  the  best  report 
and  accounts  ever  presented  to  the  shareholders. 

Building  Up  Reserve  Fund. 

In  the  life  account  we  issued  loi  more  policies,  and  the  oetl 
sums  assured,  after  deducting  reassurances,  shows  an  increa.se 
of  a  few  hundred  pounds,  and  amount  to  over  ,^^■700,000.  This 
we  regard  as  satisfactory,  when  we  consider  the  number  of 
our  staff  and  of  our  agents  who  are  now  on  military  service. 
There  were  79  fewer  claims  to  be  paid,  and  on  this  item  there 
was  a  reduction  in  amount  of  ^90,006,  notwithstanding  a  sum 
of  ;£^3o,>68  due  to  war  claims.  It  will  have  been  observed  that 
out  of  the  life  assurance  and  annuity  fund  a  sura  of  ^200,000 
has  been  set  apart  as  an  addition  to  the  investment  reserve 
fund.  In  explanation  of  this  it  has  to  be  pointed  out  that  the 
shrinkage  in  the  value  of  gilt-edged  securities  still  continues, 
and  it  has  been  thought  wise  to  gradually  build  up  the  reserve 
fund  against  the  time  when  depreciation  will  have  to  be  pro- 
vided  for. 

Fire,  Accident,  and  Marine  Results. 

The  fire  account  shows  a  distinct  forward  movement,  the 
premiums  having  increased  by  ;fi22,3o8,  contributed  to  by  all 
sections  of  our  business.  There  is  an  underwriting  surplus  of 
premiums  and  interest  over  losses  and  expenses  and  unexpired 
liability  of  ;£ioo,o79,  or  .^^'6,331  more  than  a  year  ago. 

The  accident  accounts  continue  to  yield  highly  satisfactory 
results. 

Th3  marine  account  is  again  remarkable.  You  will  observe 
that  a  profit  of  .^80,000  has  been  brought  into  profit  and  loss> 
and  an  addition  of  ;^i7o,939  has  been  made  to  the  fund. 

Profit  and  Loss  Account. 

The  profit  and  loss  account  brings  together  the  results  to  the 
shareholders  of  all  the  departments  other  than  life  and  lease- 
hold. You  will  observe  that,  beginning  with  the  balance 
brought  forward  from  last  year,  there  is  ^^61,704  of  interest 
and  ^^205,770  of  profit,  these  two  items  together  representing 
the  results  of  the  year's  operations ;  and  when  mention  is  made 
of  the  fact  that  they  total  89  per  cent,  on  the  capital  of  the 
company,  I  think  you  will  agree  that  the  results  for  the  yeai 
have  been  highly  creditable.  On  the  other  side  of  the  same 
account  you  will  find  the  dividend  paid  to  the  shareholders 
in  1917,  interest  on  bonds,  agency  balances  irrecoverable,  in- 
come-tax, and  excess  profits  duty  paid  and  provided  for,  a 
sum  wxitten  off  for  depreciation  in  investments,  and  an  addi- 
tion made  to  the  investment  reserve  fund,  and  there  is  a  balance 
left  of  ;,f 1 72,899.  Of  this  balance  the  directors  propose  to  pay 
^45,000  in  dividend,  and  to  carry  forward  ;^i27,899  to  next 
year. 

Conserving   Company's  Resources. 

A  word  of  explanation  is  due  as  to  the  dividend.  It  may 
be  thought  by  some  shareholders  that  the  time  has  now  come 
when  a  more  liberal  distribution  might  be  made,  particularly 
in  view  of  the  large  amount  of  interest  now  being  earned  on 
the  shareholders'  funds.  Had  the  times  been  normal,  such  a 
course  would  have  been  justified,  and,  no  doubt,  adopted.  Your 
directors,  however,  have  given  full  consideration  to  all  the 
circumstances,  and,  influenced  by  the  anxiety  of  the  times  in 
which  we  are  living,  and  the  effects  which  these  times  are 
having  on  the  financial  world,  they  are  satisfied  that  the 
prudent  course  to  adopt  is  for  the  company  to  conserve  its 
resources.  In  asking  the  shareholders  to  carry  out  this  self- 
denying  ordinance,  we  are  satisfied  that,  if  not  now,  certainly 
when  better  days  come,  they  will  realise  and  endorse  fully  the 
wisdom  of  our  having  strengthened  the  company's  reserves  in 
these  times  of  stress  and  trial. 

Financing  the  rouNTSv. 
The  balance-sheet  does  not  call  for  comment,  except  that  I 

would  draw  your  attention  to  the  large  sum  (over  two  and  three- 
quarter  million  pounds)  held  by  the  company  at  the  end  of 
the  year  in  British  Government  securities.  The  directors  have 
consistently  furnished  our  surpluses  to  finance  the  country,  and 

it  may  not  be  out  of  place  here  if  I  mention  that  in  the  accounts 
now  before  you  there  is  provided,  in  the  form  of  income-tax 
deducted  at  source  and  income-tax  by  direct  assessment  and 
excess  profits,  a  sum  of  no  less  than  /'i86,453.  This  is  a  large 
sum,  and  shows  of  what  assistance  the  company  has  been  to 
the  country  in  times  of  financial   strain. 

After  a  sympathetic  reference  to  the  number  of  the  company  s 
staff  who  have  fallen  or  been  disabled  in  the  war,  the  report 
and  accounts  were  adopted. 


466 


Zbe  investors'  IReview. 


Mav 


1918. 


NORWICH    UNION    LIFE    INSURANCE 
SOCIETY. 

The  iioth  annual  general  meeting  was  held  at  Norwich  on 
Wednesday,  when  the  President  (Mr.  liaynes  S.  Robinson), 
in  the  course  of  his  remarks  regarding  the  report  and 
accounts  for  1917,  said  :  A  year  ago  the  results  which  we 
had  to  present  to  you  were  so  good — I  might  even  say  so  ex- 
cellent alter  three  years  of  war  and  all  that  that  implies  in 
connection  with  the  work  of  any  life  insurance  office — that  1 
ventured  to  bring  before  you  five  questions  which  I  felt  justified 
in  speaking  of  as  covering  the  whole  range  of  prosperity  or 
otherwise  that  a  life  office  is  capable  of.  There  is  just  one  risk 
about  a  bold  line  such  as  I  took,  lor  undoubtedly  last  year  an 
awkwardly  high  standard  of  perfection  was  set  up,  such  a-, 
no  office  could  reasonably  be  expected  to  live  up  to  year  by  year 
in  such  times  as  these.  Should  that  line  be  taken  one  year  ami 
departed  from  the  next,  it  might  lead  to  a  suspicion  that  a 
phenomenally  good  year  had  been  followed  by  one  less  satisfac- 
tory. However,  I  am  glad  to  say  I  find  myself  confronted 
by  no  awkwardness  of  that  sort,  and,  although  it  is  far  from 
my  intention  to  advocate  the  adoption  year  by  year  of  oni- 
stereotyped  torm  of  words  by  the  chairman  of  a  meeting  such 
as  this,  I  think  I  cannot  more  clearly  bring  before  you  the 
satisfactory  figures  of  the  year  1917  than  by  answering  exactly 
the  same  searching  questions  I  made  use  of  a  year  ago. 

(1)  Has  our  new  business  at  least  fairly  well  stood  the  strain 
of  war  conditions? 

Under  this  heading  we  have  fully  held  our  own  in  com 
parison  even  with  ic)i6,  having  completed  and  retained  at  our 
own  risk  no  less  than  ;f3,S56,3i3,  notwithstanding  that  th.' 
ever-growing  requirements  of  war  service  during  the  year 
steadily  narrowed  down  both  the  field  of  life  insurance  activity 
and  the  number  of  the  field  workers ;  ajid  I  may  say  quite 
frankly  that  this  business,  large  as  it  is,  might  have  been 
swelled  very  substantially  had  we  not  kept  steadily  in  view 
what  we  believe  to  be  the  best  line  of  policy  in  the  interests  of 
our  policyholders  both  now  and  as  against  the  day  when  some 
thing   like  normal  conditions  prevail  once  more. 

(2)  Has  our  new  business  been  secured,  and  have  our  affdirs 
generally  been  administered,    at  a   reasonable  cost? 

I  am  glad  to  be  able  to  tell  you  that  our  business  has  been 
placed  and  maintained  on  the  books  at  almost  exactly  the  same 
figure  of  cost  as  in  1016 — namely,  12.66  per  cent,  of  premiums 
—a  thoroughly  conservative  scale,  looking  to  the  magnitude  and 
general  composition  of  our  business  and  also  to  the  .steady  ad- 
vance in  cost  of  almost  everything  except  insurance. 

(3)  Have  we  earned  on  our  funds  a  fairly  substantial  margin 
of  interest  in  excess  of  the  rate  assumed  in  our  calculation  of 
reserves? 

I  cannot  too  emphatically  assure  you  of  the  comfort  it  has 
been  to  the  directors  throughout  another  anxious  year  to  feel 
that  our  reserves  have  been  maintained  on  the  footing  of  an 
assumed  nett  earning  rate  of  only  2|  per  cent.,  and  that,  in 
addition,  we  set  aside  a  further  substantial  reserve  as  against 
all  possible  war  contingencies.  Our  actual  earned  raie  for  1017. 
after  deduction  of  the  all-importanl  item  of  income-tax,  was 
;f4  3s.  3d.  per  cent. — is.  M.  per  cent,  higher  than  for  iqiO. 
It  is  only  right  to  add  that  this  increase  is  not  so  much  due 
to  improvement  in  the  nett  earning  rate  as  to  the  fact  that 
the  lull  effect  of  our  quinquennial  revision  of  capita!  values 
comes  into  play  for  the  first  time  in  the  figures  of  the  1917 
accounts.  It  is  a  real  satisfaction  to  me,  however,  from  the  point 
of  view  of  both  security  and  profit-earning,  to  be  able  to  draw 
your  attention  to  a  margin  of  interest  on  our  life  funds  for  1917 
of  no  less  than  £1  13s.  3d.  per  cent.  o\er  our  valuation  rate 
of  £2  I  OS.  per  cent. 

(4)  Has  the  value  of  our  invested  funds  shrunk  to  any  con- 
siderable extent  since  our  last  revision  ?  After  such*  a  year 
as  the  past,  a  considerable  further  shrinkage  of  values  might 
reasonably  have  been  expected,  but  1  am  able  to  report  even 
more  favourably  under  this  heading  than  last  year.  On  re- 
valuation as  at  December  31,  1916,  we  found  market  values  were 
;^47,ooo  below  book  values,  the  latter  being  the  market  values 
at  the  date  of  our  quinquenni.-il  valuation  of  June,  1916.  This 
;if47,ooo  had  advanced  as  at  December  31  last  to  £-/2,<x)o—^ 
result  for  the  full  18  months  with  which  I  think  we  may  well 
feel  satisfied.  In  connection  with  this  question  of  invested 
funds,  I  wish  to  draw  5'our  attention,  in  passing,  to  the  fact 
that  during  the  year  our  total  funds  have  expanded  to  the 
extent  of  no  lesrs  than  jf 918,824.  This  record  affords  ground 
for  special  satisfaction  in  such  times  as  these,  when  the  general 
tendency  13  for  funds  to  shrink,  or,  at  all  events,  not  to  expand 
to  any  notable  extent,  owing,  of  course,  to  restriction  of  new 
business,  Incidence  of  war  claims,  and  depreciation  of  capital 
values. 

(5)  Has  our  mortality  experience  for  the  year  been  satisfar- 
toiy,  taking  into  account  the  inevitable  incidence  of  war 
claims  ? 

Our  mortality  experience  has,  you  will  see,  been  once  more 
within  expectation,  even  including  a  toll  of  claims  due  to  the 
war  to  the  extent  of  ^^169, 240.  But  for  the  latter  it  would 
have  been  specially  favourable— 71  per  cent,  of  expectation.  For 
«9tf),  on  the  same  footing,  the  ratio,  apart  from  war  claims, 
worked  out  at  only  65  per  cent.,  but  you  may  remember  I  com- 
mented a  year  ago  on  our  very  notably  low  experience,  which 
could  hardly  be  expected  to^  extend  over  two  consecutive  years. 
So  much  for  my  five  questions.     The  answers  I  have  been  able 


to  give  clearly  show  that,  as  regards  three  important  tests  of 
prosperity — new  business,  nett  interest-earning  rate,  and  in- 
vestment values — we  fared  even  better  tnan  in  our  excellent 
year  1916.  As  regards  the  fourt>. — economy  of  manageinent- 
the  experience  of  the  two  years  was  identical;  while,  under  the 
fifth  heading — that  of  mortality — 1917  wa.s  a  little  less  favoured 
than  the  exceptional  year  1916.  I  think  you  will  agree  that, 
all  round,  we  have  reason  to  feel  pleasea  with  our  comparative 
good  fortune  under  present  conditions. 


SPILLERS   AND   BAKERS.   LIMITED. 

Mr.  \Vm.  Edgar  Nicholb,  presiding  on  Saturday  at  the 
thirty-first  annual  general  meeting  of  Spillers  and  Hakers, 
Ltd.,  at  Cardiff,  said  that  it  was  necessary  first  to  explain  why 
the  directors  had  decided  to  meet  the  shareholders  this  year 
without  presenting  the  accounts.  On  .\pril  20  last  year  the 
Kcod  Controller  issued  an  Order  taking  control  of  the  larger 
flour  mills  of  the  country,  and  in  order  that  the  position  might 
be  fully  considered  it  was  necessary  to  postpone  the  annual 
meeting ;  but  the  accounts  presented  at  that  meeting  were  in 
respect  of  the  year  ended  February  2.S,  1917,  when  there  was 
no  control.  The  date  on  which  control  actually  c^ane  into  force 
was  May  12,  1917,  and  in  view  of  the  fact  of  the  company's 
many  other  businesses,  it  would  be  remembered  that  it  had  been 
found  necessary  to  register  .Spillers'  Flour  Mills,  Ltd.,  as  a 
separate  company,  which  had  been  done  on  August  30  last. 
In  regard  to  the  period  prior  to  August  last,  the  position  was 
extremely  complex,  as  no  separate  figures  relating  only  to  the 
flour  mills  industry  could  be  obtained,  the  profits  therefrom 
having  up  to  that  time  been  merged  in  the  general  profits  of 
the  company. 

Government  control  extended  also  to  the  other  businesses  of 
the  company  except  the  insurance  businesses.  In  regard  to 
Spillers'  Grain  Co.,  Ltd.,  which  carried  on  businesses  at  eight 
different  centres,  whereas  their  normal  stocks  would  average 
about  250,000  qrs.  before  the  war,  at  the  present  time  their 
stocks  would  be  about  5  per   cent,  of  that  figure. 

Having  dealt  with  the  question  of  the  requirements  of  the 
South  Wales  and  other  collieries,  and  the  endeavours  made  by 
the  company  to  supply  them,  he  proceeded  to  instance  Spillers' 
Victoria  Foods,  Ltd.,  as  an  example  of  the  incidence  of 
interference  with  trade.  Prior  to  the  war  they  were  manu- 
facturers of  biscuits,  kc,  for  dogs  and  poultry.  Government 
Orders  in  regard  to  jxHiltry  were  contradictory,  and,  while 
no  Order  had  been  made  affecting  dogs,  the  supply  of  the 
usual  material  for  making  bis<~uits  was  not  now  forthcoming, 
with  the  inevitable  result  that  owners,  instead  of  letting  their 
dogs  starve,  were  feeding  them  to  a  large  extent  on  food  fit  for 
human  beings. 

The  directors  had  decided  to  recommend  the  payment  of  the 
usual  rate  of  dividend  and  bonus  on  the  ordinary  shares  «f 
the  company. 

The  doctrine  that  traders  should  only  be  entitled  to  prescribed 
returns  on  their  capital  was  no  doubt  politically  attractive  to 
sonic,  but  the  company  used  their  reserves  and  bankers' 
advances  in  addition  to  their  issued  capital,  in  carrying  on  the 
business,  and  the  total  of  these  figures  must  be  taken  in 
estimating   the  percentage  of  profits  made. 

The  liritish  manufacturing  industries  had  to  prepare  for 
international  trade  after  the  war.  and  the  present  rate  tf  excess 
profits  duty,  viz.,  80  per  cent.,  was  beyond  the  limit  to  ensure 
energy  and  enterprise. 

The  reorganisation  of  the  British  Oak  Insurance  Co.,  Ltd., 
was  reviewed,  and  he  looked  for  an  ample  field  for  a  strong, 
new  insurance  company  with  an  active  policy,  especially  in 
view  of  the  fact  that  pre-war  premiums  paid  to  enemy  insurance 
companies  in  respect  of  reinsurances  were  said  to  amount  to 
20  millions  per  annum. 

Of  ihs  company's  employees,  1,248  had  joined  H.M.  Forces 
Mnce  the  outbreak  of  war,  of  which  number  77  had  been  killed 
or  died  of  wounds,  123  wounded,  12  were  prisoners,  and  seven 
reported  missing.  The  record  of  decorations  granted  would 
be  circulated  to  the  shareholders  in  due  course. 

In  regard  to  war  bread,  notwithstanding  the  heavy  dilution 
with  other  cereals,  this  was  wholesome  and  sound  where  the 
miller  and  the  baker  performed  their  re.spective  duties  i  roperly. 
Had  it  not  been  for  the  citizens  of  the  V.S..A.  denying  them- 
,  selves,  we  should  have  had  to  put  up  with  a  compound  no  better 
than  that  supplied   to  the  Germans. 

It  was  an  unfortunate  sequel  to  Government  control  that  the 
company's  profit-sharing  scheme  had  temporarily  to  be 
.suspended,  but  economy  necessitated  it  so  as  to  ensure  con. 
tinnity  of  employment. 

The  Whitley  Report  was  the  subject  now  of  the  earnest  con- 
sideration of  manufacturers  throughout  the  country.  It  must 
be  remembered  that  the  interests  of  a  section  of  the  community 
were  only  a  part  of  the  interests  of  the  whole.  Co-operation 
between  employers  and  employed  was  essential,  and  he  sug- 
gested that  the  commercial  community  might  learn  a  lesson 
from  the  trenches  with  their  repeated  records  of  mutual  trust 
as  between  officers  and  men.  He  concluded  with  an  expression 
of  his  own  and  the  shareholders'  thanks  to  the  staff  for  their 
work   during   the  past  year. 

The  retiring  directors  and  auditors  were  re-elected,  and 
after  a  vote  of  than'^s  to  the  chairman,  directors,  and  staff  of 
the  company  had  been  accorded,  the  meeting  was  formally 
adjourned,  to  enable  the  accounts,  when  ready,  to  be  placed 
before  the  shareholders  at  a  later  date. 


'May 


1918. 


Xlbe  Jnveetors'  IRevtew. 


467 


THE    FINANCIAL   TIMES. 

The  ordinary  general  meeting  of  the  Financial  Times,  Ltd., 
was  held  on  Thursday,  at  the  registered  offices  ot  the  company, 
72,  Coleman  Street,  E.C.,  Mr.  William  Graham  (the  chairman) 
presiding. 

The  Secretary  (Mr.  H.  A.  Randall,  F.C.I.S.)  having  read  the 
notice  convening  the  meeting  and  the  report  of  the  auditors, 

The  Chairman  said  :  The  past  year  has  been  a  strenuous  one 
for  the  Financial  Times — possibly  the  most  strenuous  of  the 
war  period — and  this  chiefly  for  two  reasons.  The  first  is  the 
further  drain,  both  on  the  editorial  and  business  staffs,  caused 
by  experienced  men  being  called  to  the  Colours ;  the  second, 
and  perhaps  even  more  pressing  trouble,  has  been  the  shortage 
of  paper — a  trouble  which  unfortunately  is  increasing  and 
almost  certainly  will  still  further  increase  while  the  war  lasts. 
This  has  necessarily  entailed  a  regime  of  the  strictest  economy. 
We  have  to  cut  our  coat  according  to  our  cloth,  and  not  only 
to  the  present,  but  to  the  prospective  supplies  of  cloth.  Every 
effort  has  been  made  to  save  space  without  injury  to  the  efficiency 
of  the  paper.  The  figure  of  ;^ 20,062  3s.  8d.,  which  represents  the 
profit  earned  during  the  past  12  months,  is  slightly  in  excess 
of  that  earned  for  1916,  and  is,  I  am  sure  you  will  agree,  a  very 
satisfactory  showing  under  the  present  abnormal  conditions. 
The  usual  amount  has  been  placed  to  the  staff  pension  fund, 
and  the  necessary  redemption  of  debenture  stock  has  been 
effected,  and  you  will  notice  that  the  issue  of  second  mortgage 
debenture  stock  has  been  entirely  redeemed,  and  will  henceforth 
disappear  from  the  accounts.  The  balance  of  profit,  after  meet- 
ing all  fixed  charges,  represents  a  very  creditable  percentage  on 
the  ordinary  share  capital,  but,  in  view  of  the  present  political 
situation,  we  have  thought  it  advisable  strictly  to  conserve  the 
finances  of  the  company.  In  recommending  a  payment  for  the 
year  on  the  ordinary  shares  of  4  per  cent.,  the  directors  trust 
that  the  ordinary  shareholders  will  feel  that  the  wisest  course 
has  been  adopted  by  limiting  dividends  and  increasing  the 
"carry-forward  "  by  £(i,<xx>,  and  thus  strengthening  the  posi- 
tion of  the  company  as  a  whole.  The  advertising  revenue  dur- 
ing the  past  year  was,  in  spite  of  the  dearth  of  practically  all 
prospectus  business,  well  in  advance  of  that  of  the  preceding  12 
months,  and  the  two  special  supplements  recently  produced, 
dealing  with  insurance  and  banking,  constituted  a  record.  It 
has  been  impossible  during  the  past  year  to  do  much  in  the  way 
of  launching  new  publications,  but  the  "Income-tax  Guide" 
which  we  produced  met  with  a  very  large  sale,  and  the  sale  of 
our  1917  edition  of  "Rubber  Producing  Companies"  was 
largely  in  excess  of  that  of  any  previous  issues.  A  new  edition 
of  the  "  Income-tax  Guide,"  covering  the  present  Finance  Act, 
is  now  being  prepared,  and  will  shortly  be  i.ssued.  The  circula- 
tion of  the  Financial  Times  to-day  is  greater  than  it  was  at  this 
time  la.st  year,  and  were  it  not  for  the  paper  difficulty  we  could 
increase  this  sale  very  materially.  As  a  sign,  and  perhaps  the 
most  significant  sign,  of  the  vitality  and  usefulness  of  the 
Financial  Times,  I  may  once  more  call  attention  to  the  fact 
that  our  "  Answers  to  Correspondents  "  column  has  fully  main- 
tained its  popularity  durin?  the  year,  and  far  exceeds  in  dimen- 
sions that  of  any  other  daily  newspaper  dealing  exclusively  with 
finance.  A  word  now  as  to  the  future  of  the  Financial  Times 
after  the  war.  The  war  has  enhanced  rather  than  diminished 
the  influence  and  reputation  of  the  Financial  Times.  Its 
prestige  never  stood  higher.  It  will  get  the  benefit  of  all 
financial  advertising  going  when  the  war  is  over,  and  there  will 
be  plenty  of  it.  It  is  a  great  mistake  to  suppose  that  the 
enormous  sums  raised  for  war  purposes  represent  money  wholly 
lost.  A  very  large  proportion  of  it  is  money  retained  in  the 
country,  and  it  is  a_ process  rather  of  shifting  than  of  extinction 
of  capital.  A  considerable  proportion  of  the  newly  made  capi- 
tal must  inevitably  seek  investment,  and  once  the  ban  of  the 
Treasury  is  removed  there  will  be  no  lack  of  new  issues,  and 
there  will  be  a  quickening  of  Stock  Exchange  business  and  of 
enterprise  all  round.  I  think  we  may  look  forward  with  full 
confidence  fo  the  future  of  the  Financial  Times. 

Mr.  F.  F.  Bridgewater  (managing  director)  seconded  the  re- 
solution, which  was  carried  unanimously. 


NITROGEN    PRODUCTS    AND    CARBIDE. 

The  fourth  annual  general  meeting  of  the  Nitrogen  Products 
and  Carbide  Co.,  Ltd.,  was  held  on  Wednesday  at  Winchester 
House,  Old  Broad  Street,  E.C.,  Mr.  A.  E.  Barton  (the  chair- 
man) presiding. 

The  Secretary  (Mr.  H.  A.  McMahon)  read  the  notice  con- 
venfeg  the  meeting  and  the  auditors'  report. 

The  Chairman  said  the  year's  working  had  resulted  in  the 
satisfactory  nett  profit  of  ^212,880,  equal  to  nearly  12  per 
cent,  on  the  paid-up  capital.  Their  Odda  factory  had  worked 
throughout  the  year,  and  the  whole  of  the  cyanamide  produced 
had  been  sold  under  contracts  which  had  just  been  completed  ; 
fre.sh  ones  had  been  entered  into  which  would  assure  an  outlet 
for  the  whole  of  the  production  up  to  the  end  of  the  present 
year,  at  prices  that  should  prove  remunerative.  The  works  at 
Alby  had  run  throughout  the  year,  and  the  company  had  been 
enabled  to  declare  a  satisfactory  dividend.  Work  at  Aura  had 
been  specially  directed  to  the  driving  of  the  tunnel,  so  th.it 
when  operations  were  resumed  on  a  large  scale  harnessing  up 
might  be  completed  as  speedily  as  possible.  The  large  installa- 
tion in  France  had  been  running  continuously,  other  plants 
were  nearing  completion,  or  about  to  be  constructed,  and  their 


French  friends  considered  their  process  of  great  value.  The 
Italian  factory  should  shortly  be  in  operation,  and  they  were 
negotiating  for  the  sale  of  their  rights  in  other  countries.  The 
profits  would  have  been  considerably  greater  had  the  products 
of  their  Odda  works  been  disposed  of  as  a  nitrogeneous  fer- 
tiliser rather  than  utilised  as  the  source  of  ammonia  supply  for 
war  purposes.  Shareholders  would  appreciate  from  that,  how- 
ever,  that  their  company  was  not  one  of  those  whose  source  of 
revenue  would  disappear  with  the  cessation  of  hostilities  On 
the  contrary,  when  that  happy  time  arrived,  the  demand  for 
their  products  would  be  greater  than  ever.  He  was  glad  that 
the  country  had  wakened  to  the  vital  importance  of  developine 
the  productivity  of  the  soil  to  the  much  higher  standard 
already  reached  in  other  European  countries,  by  the  inten.sive 
use  of  artificial  fertilisers.  Had  the  importance  of  agriculture 
been  thoroughly  realised  in  pre-war  days  the  country  would 
now  be  in  a  very  different  position.  As  illustrating  the  finan- 
cial benefit  to  the  nation  from  an  adequate  use  of  fertilisers,  if 
they  took  the  probable  acreage  of  wheat  at  3i  million  acres,  on 
that  crop  alone  the  increased  value  would  amount  to  at  least 
.65.000,000  per  annum;  in  the  case  of  a  potato  crop  the  in- 
creased value  would  be  approximately  ^f  8, 500,000  per  annum. 
A  Departmental  Committee,  appointed  by  the  Minister  of 
Munitions  to  report  on  the  post-war  position  of  sulphuric  acid 
and  the  fertiliser  trade,  called  attention  to  the  fact  that  the 
large  surplus  of  sulphuric  acid  plant  which  would  be  available 
at  the  end  of  the  war  provided  an  opportunity  for  the  develop- 
ment of  a  vigorous  agricultural  policy  in  relation  to  the 
efficient  cultivation  of  the  soil,  and  recommended  that  the 
powers  of  the  Corn  Production  Act  should  be  widely  used  to 
enforce  the  adequate  use  of  fertilisers.  The  recommendation  of 
the  Committee  had  relation  to  the  utilisation  of  sulphuric  acid 
as  much  as  possible  by  the  manufacture  of  super-phosphates. 
The  result  of  such  a  sound  policy  would,  however,  be  more  far- 
reaching,  because  if  the  quantity  of  phosphates  applied  to  the 
land  should  be  greatly  increased,  nitrogenous  fertilisers  must 
also  be  largely  increased.  In  order  to  make  Great  Britain 
self-contained  in  regard  to  the  necessary  raw  materials,  the  in- 
stallation of  adequate  and  cheap  electrical  power  was  essential, 
and  the  only  means  of  obtaining  cheap  electrical  power  was  by 
developing  a  suitable  coalfield  on  an  extensive  scale,  by  car- 
bonising the  coal  at  high  temperatures,  recovering  all  the  by- 
products therefrom,  passing  the  coke  through  producers,  and 
utilising  all  the  gases  for  firing  boilers  to  work  steam  turbines 
operating  large  electrical  generators.  They  were  preparing 
plans  and  estimates  for  a  complete  installation  of  120,000  h.p., 
so  as  to  be  in  a  position  on  the  cessation  of  hostilities  to  initiate 
and  co-operate  in  the  establishment  of  an  industry  of  this 
nature  in  this  country. 

Major  C.  H.  Campbell,  in  seconding  the  resolution,  said  it 
spoke  volumes  for  the  company  that  a  business  brought  into 
being  mainly  to  fill  the  requirements  of  agriculture  should 
prove  so  adaptable  and  of  such  great  value  for  the  manufac- 
ture of  high  explosives.  The  great  lesson  which  the  war  had 
brought  home  to  all  nations  was  the  absolute  necessity  of  being 
self-supporting,  not  only  as  regards  peace,  but  under  war  con- 
ditions, and  there  was  no  doubt  tHat  in  the  near  future  their 
company  would  reap  the  benefit  of  this  dearly  bought  lesson. 

The  resolution  was  carried  unanimously. 


WoHd'8  Shipping  Output. 


The  Admiralty  furnishes  the  following  statement  with  regard  to 
the  shipping  output  for  the  past  quarter  and  previous  periods  : — 


Period. 

United 
Kingdom. 

Allied  and 
Neutral. 

World. 

650,919 

541.552 

1,163,474 

320,280 

551.081 
1,146,448 
i.774,3i2' 

544.327 

1916 ■ .. .. 

IQI7. ....     

1.688,000 
2.937.786* 
864,607 

1918,  ist  quarter  . . 

•Adjusted  to  include  certain  vessels  advised  since  the  issue  of 
the  Parliamentary  White  Paper  in  March  (Cd.  goog). 

United  Kingdom  Completions. 

The  tonnage  of  merchant  vessels  completed  in  United  Kingdom 
yards  and  entered  for  service  during  April,  1918,  compared  vvitb 
preceding  periods,  was  as  under  : — 


Month. 


1917. 

April   

May 

June    

July 

August    

September,. . 

October 

November  . . . . 
December  . . . , 
1918. 

January  

February  . . . , 

March 

April   


Com- 
pletions. 
GrossTons. 
69,711 

69.773 
109,847 

83.073 
102,060 

63.150 
148,309 
158,826 
112,486 

58,568 
100,038 
161,674 
"1.533 


Year 
Ending. 


1917. 

April  30    

May  31 

June  30     

July  31 

August  31  .. . 
September  30 , 
October  31  ... 

Nov.  30    

December  31  . 

1918. 
January  31  .. , 
February  28   . 
March  31 .   . . , 
April  30  


Com- 
pletions. 


Gross  tons. 

749314 
773.116 
835.863 

865.147 
928,470 

957.185 
1,045,036 
1. 133.336 
1.163,474 

1.173.953 
1,194,540 

1. 237.515 
1.279.337 


4« 


^be  Jnveetors'  IRevfcw* 


Mav  II,  1918. 


INDUN  RAILWAYS. 


OROSS  TRAFFIC  FOR  WSEK. 

ORO««  TRAFFIC  TO  BATE. 

Nahx. 

Week 
ending 

Amonnt 

In. or  deo 

on  last 

year. 

AmoDDl 

In.  or  dec. 
on  last 
year. 

A*um  Bencal 

Bars! 

Bengal*  N.-W.     .. 

Bengal  Nagpar 

Bombay,  Baroda  .. 

B  rma 

Delhi  Umballa 

East  Indian.. 

Gt.  Indian  Penin.  .. 

Luoknow-Bareilly.. 

Madras      and       S. 

Mabratta  .. 
Niiam'sGd.  (Broad) 
,,        „     (Metre) 
Robllkund  and 

KumaoD  .. 
Smtb  Indian 

Mar.    3 

;:  i2 

April  27 
Mar.     2 
April  27 

;;  V, 

Mar.  16 

..       9 
II       2 
■  1       2 

11      16 
1.        9 

lu. 

«|64.MJ 

io,aoo 

4,96,930 

ia,93,ooo 

18,84,000 

5,33.453 

96,100 

26,86,000 

2},SS,200 
70,646 

11,00,000 

1,66,964 

82,499 

55.206 
6,42,064 

R>. 
+     36,332 

—  6,400 
+       91I58 
+  1,02,000 
+  3,03,000 

-  7.223 
+     20,310 
+  3,25,000 

+       93.200 

+     16,924 

-  2,604 

+     3»i364 
+       ii5'i 

+     14,463 

—  29,796 

J 

lis. 

3o,af,6ij 

7,78,700 

99,66,892 

5,16,88,138 
69.72,000 

2,00,83,423 

3i49i083 

95,38.000 

90,72,200 

12,96,717 

2,37136,598 

l8|«7'.625 

11,11,039 
I.47.83i3" 

Ra. 

+    3.'6,30O 

—  2,28,700 

-  3.54i50i 
+  42,45i529 
+    8,83,000 

-  61,708 
+       52,775 
+    3,83,000 

—  1,48,700 
+     1,55.246 

+  12,49.258 
+    1.10,871 
+       38.591 

+     1.94.482 
+    9.54,861 

What    Balance  Sheets  Tell. 


t  April  1.  t  October  i. 

TRAMWAY  AND  OMNIBUS.— HOME. 


i 

f 

■    £ 

£ 

Dublin  United       .. 

Apr.    5 

7%7 

+    l,9'4 

t 

99.454 

+     19  435 

Hasting  and  DIst.. 
Isle  of  Tbanet 

„     22 

1,017 

+         43 

16,614 

+       2,080 

,,     20 

177 

-        76 

* 

5.240 

—       1.969 

Lancashire  United.. 

May    I 

J.013 

+       943 

t 

45.991 

+      13.707 

Provincial    . . 

Apr.  20 

2i507 

+       351 

* 

70,323 

+      12,844 

Vorka.  (Wst.  Rdng.) 

May    5 

2i543 

+        4211 

t 

43.290 

+       9.817 

♦  From  Oct.  1.  t  From  Jan.  i. 

TRAMWAY  AND  OMNIBUS.— FORtIGN  AND  COLONIAL. 


Alabama  Power    ., 
Anglo-Argentine    . . 
Auckland  Electric. 
Brazilian  Traction 
Brisbane  Eleo.  Inv. 
British  Columbia  . . 
B.A.  Lacroze 
Burmah  Electrio  . . 
Cateutta 
Carthagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &T 

Hongkong   . . 
La  Plata 

Lima 

Madras  Eleetrlo    .. 

Manila  Electrio.... 

Mexico 

Rangoon 

Singai>ore  Electric 

Toronto 

United  of  Monte  V. 

Vera  Cruz   . . 

Winnipeg    . , 


Mar 

» 

May 

6 

Apr. 

12 

Mar 

s 

J, 

8 

Apr. 

Mar. 

b 

May 

4 

Apr. 

b 

Feb. 

Mar. 

9 

^r. 

b 

Apr. 

30c 

Aug. 

8 

Nov. 

i 

Apr. 

i 

Feb. 

23 

Mar. 

1 

Apr. 

Feb. 

« 

Mar. 

s 

126,829 
59,028 

23,209 

M3.925IOOO 

^  33.530 

1129,658 

41.643 

Rs. 27,906 
Rs.76,018 

4,aco 

12,972 

$12,990 

5,169 

42,106 

Rs.4£,9ii 

65.467 

•  215.236 

5.885 

♦  13,670 

♦531.725 

33.704 

42,200 

♦66,661 


£ 

+  20,143 
+  3.390 
+       2,03 

—  M  226,000 
+         2,190 

-I-      ♦<9,210 

+      2,532 

+  Rs.  774 
+  Rs.8,582 

—  166 

+  1,076 

+  701 

+  940 

+  4.520 

+  Rs.  8,966 

+  4,667 

—  ♦  108,669 


849 
•707 

$56,l!9 
4,474 
6,300 

♦  16,980 


Ms. 


126,829 
996,702 
224,466 

MXI186000 
102,039 

•i|032,557 
388,064 
185,428 

Rsu5j,340 

17,558 

147.938 

♦141.39* 

19,972 

127,555 

Rs, 320,724 

547.492 

♦  3,193,106 

22,863 
♦104,652 

♦  1,442,834 

206,037 

84,200 

♦216,856 


£ 

20,143 
73,009 

9,880 

M852,ooo 
3.879 

•  160,244 
a,6oi 

Rs.  991 
Rs. 80,703 

3,032 


+  435 

+  #2,377 

+  2,807 

+  18,900 
+  Rs.44,632 

+  70,625 

-  ♦197,227 
+  2,363 

-  $1,821 

+■  ♦53,211 

+  19.415 

-  19,300 

-  «33.8'7 


iaS  days.      •  From  Jan.  i.      i  Nett.      a  From  luly  i.     c  Two  weeks, 
FOREIGN  RAILWAYS. 


AlooyandGandla.. 

Antoiagasta    (Cbili) 

Arauco 

Argentine  N.E.      .. 

Bilbao  R,  and  Canta 

Bolivar 

Brazil 

Brazil  Gt.  Southern 

B.  Ayres  &  Pacific 
Do.  Central  .. 
Do.  Gt.  South'n 
Do.       Western 

Central  Argentine. . 

C.Ur'g'ayofMte  V. 
Do.  East'n  Ex. 
Do.North'nEx. 
Do.  West'n  Ex. 

Cordoba  Central 
Costa  Rica   , 
Cuban  Central 
Dorada  Extension 
Egyptian  Delta 

Entre  Rios  . . 

French  Sante  Fi 

Gt.  South,  of  Spain 

Gi.West.  of  Brazil. 

Havana  Central    . . 

Inter,  of  C.Amer... 

La  Guaira  and  Car 

Leopoldina.,        ,. 

Midland  Uruguay  .. 

Mogyana 

N.W.  of  Uruguay 

Nitrate 

Paraguay  Central 

Paulista 

Peruvian  Corpn 

Salvador 

State  of  Bahia  S.W. 

S.  Paulo  (Brazilian) 

Sorocabana.. 

Taltal 

United  of  Havana.. 
West'n  of  Havana. . 
Zafra  and  Huelva. . 


May 

Mar. 
May 
Apl. 

Feb. 
Dec. 
May 
Mar. 
May 


Mar. 
May 
Mar. 
Feb. 
May 
Jan. 
Apl. 
May 
Apl. 
Mar. 

May 
Mar. 
Feb, 
ApL 


Feb. 
Apl. 

Mar. 
May 
Feb. 
Mar. 
May 

Mar. 


£ 

£ 

P«.    9,500 

500 

+        7,690 

12,500 

+        1,300 

11,500 

+        1,800 

S,453 

+        2,011 

13,000 

+           962 

M4,426,ooo 

+  M7l3,o64 

Ml8.66,9t2 

+  M22,712 

96,000 

+         10,000 

38,675 

+        14,034 

116,000 

+           1,200 

76,000 

+        34,000 

171,000 

+        85,700 

18,620 

+          3,336 

5,407 

—             390 

3,425 

—          453 

1,934 

+           436 

36,500 

+        3i»90 

3,690 

—          601 

32,630 

803 

8,200 

—          400 

6.519 

+        1.253 

19,400 

+        6,400 

147,488 

+      55i7'3 

Ps.   29,535 

-Ps55,4" 

14,500 

+       3,300 

10,911 

+       2,841 

30,205 

-       9,999 

5.500 

—       4,000 

30,403 

+        8,625 

14.894 

+           136 

Mi,793,ooo 

+  M4i5,924 

♦22,000 

-        t6;7 

33,247 

—          601 

3,230 

+           400 

M2,740,ooo 

+  M994,536 

Si,o79,88o 

+  Si  22,380 

3,939 

+          567 

M47,ooo 

—  Mao.ooo 

21,501 

—       1,740 

Mi,784,ooo 

+  M272,3oi 

20,392 

+           119 

79,287 

+      11,300 

13,355 

+        2,316 

13,419 

+          3,201 

„      £ 

Ps.  167,400 

760,670 

39,000 

374.400 

13.083 

113.773 

M9,628,ooo 

"538,439 

4,091,000 

232,258 

4i775,705 

2,273,000 

4,980,200 

812,137 

224,567 

144,076 

98,343 

1,352,330 

104,620 

910,189 

23,900 

264,360 

695,400 

147,488 

Ps.  512,305 

323,300 

371,020 

77,876 

19,250 

568,943 

119,814 

M  3,948,000 

♦  260,697 

241,090 

123,260 

M5,7oo,ooo 

S  10402,440 

79,017 

M237,ooo 

559.428 

M3, 736,000 

224,678 

2,525,008 

397,974 

35.912 


—  Ps. 27,470 

+     93,050 

+        6,000 

+  67,198 
+  2,919 
+  14,630 
+  MI783563 


n 1783563 
M74.769 


769 

299,000 

35,451 
192,349 

108,000 

420, 200 

229,699 

7,i>85 

35,421 

17,862 

59.780 

89,971 

163,416 

2,700 

62,069 

163,900 

53,713 

■2,023 

89,850 

78,402 

—  27,584 

—  8,250 
+  160,823 
+  4,266 
+  Mg69,999 
+  $17,004 
+  13,700 
+  14.790 
4- M 1807952 
+  Si  142548 

—  1,461 

—  M53,ooo 
+  :6o,759 
+  M472,i96 
+  57.023 
4-  617,306 
+  1:0,190 
+  3.593 


+ 
+ 
+ 
-Psi 

+ 
+ 


*  Months,  t  From  Jan.  1.  1  From  July  i,    c  Nett.    i  13  days,    a  10  days. 
COLONIAL  RAILWAYS. 


£ 

£ 

£ 

/ 

Beitt 

Deo.  •« 

49,448 

-      1,842 

173,777 

+ 

6,532 

Canadian  Northern 

Apr.  30 

♦1,182,400 

4  $250,300 

♦34,657,500 

+  81246,100 

Canadian  Pacific   .. 

„    30 

♦4,072,000 

+  ♦407,000 

♦45,799,000 

+  « 

2334,000 

Gr.Trk.  Main  Line 

„   30 

337.723 

4-    102,900 

3,141,049 

+ 

139,570 

Gr.Trk.  Western.. 

,1   30 

55.654 

+       3i'28 

576,288 

— 

164 

Detroit  G,  H.  &  M. 

.,    30 

14,733 

—       2,293 

■87,379 
<i2,8oi 

— 

19,178 

Or  TkPac  Prairie  Sc 

,,    30 

26,417 

—       2,070 

+ 

107,806 

Mashonaland 

Nov,  • 

56,698 

-        1,486 

36,698 

1,486 

Mid,  of  Westn,  Aus. 

Feb.   » 

8,617 

-             88 

61.134 

+ 

3.913 
4.639 

New  Cape  Central.. 

Mar  16 

2,177 

+            464 

25,919 

+ 

Rhodesia      .. 

lan.V 

76,395 

—       4, '88 

345.800 

+ 

7,737 

•  Mo'nih 

1.         t 

Inly  I. 

t  Jan.  I. 

cF 

'lom  Oct.  I. 

London  Bank  of  Alstkalia,  Ltd.— (iross  profits  last  year 
amounted  to  ;£232,(xio,  an  increase  of  ;^ii,ooo,  while  expenses, 
contrary  to  general  experience,  were  ;^3,ooo  less  at  ;£i49,ooo. 
(Consequently,  with  ;^4,ooo  less  brouglu  in,  the  available  balance 
is  up  ;^  10,000  and  the  dividend  of  7  per  cent,  on  both  the 
ordinary  and  preference  shares  is  repeated.  Provident  fund 
gets  an  extra  ;f  i,o<x>,  and  ;^3o,ooo,  or  ;f5,oco  more,  is  placed 
to  reserve,  leaving  ;^24,500,  or  ;f3.8oo  more,  to  be  carried  for- 
ward. Deposit  and  current  accounts  have  increased  ^720,000 
to  .^6,345,000,  while  cash  and  investments  are  up  ;^46o,oo<j  al 
;^3, 263,000,  and  discounts,  advances,  &c.,  ;f2io,ooo  at 
jf4, 722,000.     The    balance-sheet    total    has    risen    ;f730,ooo    to 

Industrial  Ba.nk  ok  Japa.n,  Ltd. — Very  gratifying  progress 
continues  to  be  made  by  this  u.seful  banking  enterprise.  In  the 
past  half-year  gross  profits  amounted  to  yen  4,866,000,  and  the 
nett  to  yen  730,000,  so  that  there  is  no  difficulty  in  maintaining 
the  dividend  at  6  per  cent,  after  placing  yen  74,000  to  reserve. 
As  compared  with  18  months  ago,  the  capital  has  been  in- 
creased by  yen  12,500,000  to  yen  30,000,000,  debentures  by 
13,000,000  to  yen  76,4o3,o<xi,  and  deposits,  &c.,  by  30  millions 
to  yen  50,094,000.  The  balance-sheet  now  totals  at  yen 
181,500,000,  an  increase  of  (14  millions,  and  the  position  kicks 
healthy,  although  perhaps  a  somewhat  large  proportion  of  the 
assets  (yen  41,500,000)  is  tied  up  in  fixed  loans. 

Brazil  Great  Soi-thern  RAii.w.At  Co,,  Ltd.— Accounts  for 
the  year  1916  are  only  now  presented,  and  they  do  not  indicate- 
much  progress.  Gross  receipts  on  the  main  line  amounted  to 
^■le.soo,  an  increase  of  .^1,350,  but  expenditure  reached 
^19,310,  an  increase  of  .^2,190.  On  the  San  Borgia  extension 
gross  receipts  were  ;^'7,3io,  or  £i,2yo  higher,  and  this  just 
about  clears  expenses.  Altogether,  the  deficiency  for  th^  year 
is  ^24,410,  raising  the  total  debit  balance  to  /■3i,270.  The 
most  pleasant  item  in  the  report  is  the  announcement  that  the 
Brazilian  Government  made  an  offer  to  pay  a  substantial  part 
of  the  guaranteed  intere.st  in  5  per  cent,  internal  bonds.  Thi'^ 
was  accepted,  and  ^f 44,250  has  been  received,  while  it  is  hoped 
that  an  arrangement  will  shortly  be  made  for  the  payment  of 
the  remaining  ;/^2o,25o. 

Si'iLLEEs  AND  BAKERS,  LTD. — The  directors  were  nut  in  a 
position  to  submit  accounts  at  the  annual  meeting  held  last 
Saturday,  and  there  is  considerable  uncertainty  as  to  when 
they  will  be  available,  but  the  auditors  are  satisfied  that  the 
profits  of  the  year  to  February  28  will  permit  of  the  payment 
of  a  final  dividend  of  7j  per  cent.,  making  10  per  cent,  for 
the  year,  together  with  a  bonus  of  5  per  cent.,  and  this  has 
accordingly  been  declared.  A  similar  distribution  was  made 
a  year  ago.  Profits  have  not  been  on  the  scale  reached  in 
1915,  and  the  principal  business  is  now  "controlled,"  but  it 
continues  to  prosper. 

Samni(;(;ir  Ji'tk  IactoRY  Co..  Ltd. — Although  the  jute  busi- 
ness does  not  appear  to  have  been  quite  so  profitable  last  year 
as  in  1916,  the  great  Anglo-Indian  companies  have  nothing 
much  to  complain  of.  This  factory  had  an  overturn  of 
/'i,283,CKX),  or  ;f264,o(x>  less  than  in  the  previous  year,  and  the 
trading  profit  was  ;f  154,000  lower  at  jf35j,i20.  Taxation,  how- 
ever, required  ;fi35,ooo  less,  and  with  larger  miscellaneous 
receipts  the  nett  profit,  including  about  the  same  amount  brought 
in,  shows  an  increase  of  ;fio,ooo  at  ^'276, 100.  From  this 
^■30.000  is  set  aside  for  depreciation  of  plant  and  /'107.000  as 
a  reserve  for  income-tax.  Dividend  is  reduced  from  40  per 
cent,  to  35  per  cent.,  and  the  carry  forward  of  jT.jftfini  is 
;^io4,(XK)  down.  It  is  stated  that  the  outlook  for  the  'urrout 
year  is  quite  satisfactory. 

TiTAGlUR  JL'TE  F.WTORV  ("o.,  LTD. — Balance  of  sales  account 
for  the  past  year  amounted  to  ,1^  1 ,393,oc»,  a  decrease  of  ;f  250,000, 
and  the  trading  profit  is  ^f  170,000  lower  at  ^'354,(xki.  How- 
ever, ;f  150,000  was  saved  on  taxation,  and  with  ;^  15,000  more 
brought  in  the  available  balance  shows  an  increase  of  /^  19,000 
at  ^332,800.  From  this  ^150,000  is  set  aside  for  depreciation 
and  income-tax  reserve,  and  the  dividend  of  40  per  cent,  on  the 
ordinary  shares  is  repeated,  leaving  ;f 53,500,  or  /ii7,ocx)  less, 
to  be  carried  forward.  Like  other  similar  undertakings,  the 
company  has  supplied  a  large  proportion  of  its  production  to  the 
Allied  Governments  at  a  very  heavy  discount  on  current  market 
rates,  but  the  directors  very  naturally  regard  the  nett  results  as 
entirely  satisfactory.  And  we  should  think  that  the  stare- 
holders  will  cordially  agree  with  them. 

Victoria  Jite  Co.,  Ltd. — Sales  account  shows  a  total  of 
^^850,000,  but  this  is  ;^i2o,ooo  less  than  in  1916,  and  the  trading 
profit  is  ;^63,ooo  down  at  ^232, 450.  Excess  profits  duty  for 
1916  absorbed  ^105,000  of  the  large  balance  brought  forward, 
and  ^^89,000  is  set  aside  in  respect  of  the  past  year,  with  the 
result  that  the  available  balance  is  ^128,000  lower  at  ;^i8o,8oo. 
Only  £io,ocK>  against  ;f2o,ooo  is  set  aside  for  depreciation,  but 
income-tax  reserve  gets  £.-^.(yoci^  and  after  paying  ;;  i.er  cent, 
ngainst  40  per  cent.,  the  carry  forward  is  reduced  by  ^^54,000  to 
/i 5,300.  For  a  time,  owing  to  exchange  and  freight  difficulties, 
an  agreement  was  entered  into  to  run  the  mills  only  five  days 
per  week,  and  this  was  in  force  till  the  beginning  of  the  present 
year,   when   six  days  working  was   resumed. 


Prlattd  by  th«  St.  Ci.euemts  Press,  Ltd.,  Portugal  Street,  Kingsway,  London,  W.C,  for  the  Proprietor  of  The  Imvestors'  Review,  and  Published 
by  The  Peophietoe,  Norfolk  House,  Norfolk  Street,  Strand,  W,C,  s.— May  it,  1918.  (N  2513 


XTbe 


Jnveetote'  IRevfew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


Vol.  XLI.— No.  1,063.] 

HEW  SERIES. 


rReflstered  as  an 
L    Newspaper,    J 


SATURDAY,  MAY  i8,  1918. 


[Price  6d. 


CONTENTS. 


Passing  Events: — National  War  Bond  Sales  —  Revenue  — 
Imports  and  Exports  —  Position  of  Russia  —  Rumanian 
"Peace"  Treaty  —  Canadian  Railway  Nationalisation  — 
Yokohama  Specie  Banli  — ■  Kine  Cotton  Spinners  — 
Industrial  and  General  Trust  —  Marconi  Wireless 
Telegraph  —  Babcock  and  Wilcox  —  Bankers'  Investment 
Trust  —  Barnato  Group  —  Zinc  Concentrate  Contract  — 
Consolidated  Mines  Selection  (pp.  471-4). 

Leading  Articles : — Heavy  Taxation  and  Some  Magicians  of 
the  New  or  "Cubist"  Finance  —  Brazilian  Trade  and 
Finance  —  By-the-Way  War  Notes  (pp.  474-7). 

Insurance  News ; — Norwich  Union  Life  —  Standard  Life  — 
United  States  and  Canada  Fire  Losses  in  April  —  Eagle, 
Star,  and  British  Dominions  Report  (pp.  477-8). 

American  Business  Notes  : — European  Holdings  in  the  Steel 
Trust  —  Reading  Results  —  Philadelphia  and  Reading 
Companies  —  Illinois  Central  —  New  York,  New  Haven 
and  Hartford  Railroad  (p.  478). 

Money  and  Credit  Notes : — No  Change  in  Rates  —  Bank 
Return  —  Bank  Amalgamation  Tribunal  —  American 
Advances  to  the  Allies  —  Monthly  National  Defence 
Bonds  in  France  —  San  Paulo  Treasury  Notes  Renewal  — 
.  Exchange  Movements  —  Sumitomo  Bank's  London  Branch 
—  Japanese  Bond  Redemptions  —  Siher  (pp.  480-2). 

Public  Income  and  Expenditure  (p.  479). 
Mining  Returns  for  April  (p.   479). 


Mining  News: — Plymouth  Consolidated  Mines  —  Transvaal 
Gold  Production  —  Native  Labour  Returns  —  Brakpan 
Mines  —  Springs  Mines  —  Witwatersrand  Deep  —  Tonglnh 
Harbour  Tin  Dredging  —  Gurum  River  (Nigeria)  Tin 
(pp.  484-5). 

Tea,  Oil,   and    Rubber: — Restriction  of    United   States   Imports 

—  Anglo-Malay  Rubber  Co.  —  Pataling  Rubber  Estates 
Syndicate  (p.  486). 

What  Balance  Sheets  Tell :— Alliance  Trust  Co.  —  Rosario 
Nitrate  Co.  —  Salar  del  Carmen  Nitrate  Syndicate  — 
Anglo-Continental  Guano  Works  —  Brazilian  Warrant  Co. 

—  Sir  Elkanah  Armitage  and  Sons  — ■  W.  P.  Lowrie  and 
Co.  —  Alby  United  Carbide  Factories  —  Imperial  Direct 
Line  (p.  487). 

Company  Meetings : —  Liverpool  and  London  and  Globe 
Insurance  Co.  —  London  Bank  of  Australia  —  The 
Eastern  Bank  (pp.  488-9). 

The  Week's  Stock  Markets  (pp.  482-3). 
London  Produce  Markets  (po.  483-4). 

The  Week  in  Mines  (p    484). 

Company  Results  in  Brief  (p.  485). 

Answers  to  Correspondents  (p.  485). 

Letters  to  the  Editor  (p.  485). 

Dividends  Announced  (p.  486). 

Books  Received  (p.  486), 

Oilfields  Production  (p.  489).         Traffic  Returns  (p.  492). 


CANADA. 

THE  DOMINION  BANK. 

Head  Office,  TORONTO. 

THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of  the   Imperial 
Japanese  Government,  1899. 

Total  Assets    -      -    $il09, 436,000. 

HEAD   OFFICE      -      -      TAIPEH,   FORMOSA. 

SIR    EDMUND  B.    OSLER.  President. 
W.   D.    MATTHEWS.  Vice-President. 
C.   A,    BOGERT,  General  Manager. 

Amoy,    Batavia,    Bombay,    Canton,     Foochow,    Hankow,    Hongkongt 
Kuikiang,  Kobe,   New   Yoik,   Osaka,    Shanghai,   Singapore,    Swatow, 
Soerabaya,  Tokyo,  and  every  important  city  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 

London  Branch,  73,  CORNHILL,  E.C.3. 

J.  HAYDN  HORSEY.  Manager. 

LONDON  OFFICE  -  58.  OLD  BROAD  ST..  E.G.  2. 

Dealer's  in  Canadian  and   American   Exchange. 
General  Banking  business  transacted.   Informa- 
tion furnished  regarding  Canadian  matters. 

THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1 B80. 

Subscribed  Capital        Yen  48,000,000 

Capital  Paid  Up Yen  42,000,000 

Reserve  Fund         Yen  22,100,000 

ROYAL  BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  17^7. 

PAID-UP  CAPITAI. £2,000,000 

REST  AND  UNDIVIDED   PROFITS               914,968 

DEPOSITS 26,177,865 

Head    Office:    ST.    ANDREW   SQUARE,  EDINBURGH. 
Cashier  and  General  Manager,  A.  K.  Wright.         Secretary,  J.  B.  Adshead. 

London    Office:    3,    BISHOPSGATE,  E.G.  2. 
William  Wallace,  Manager.                               Alex,  Dick,  Deputy-Manager. 

Glasgow  Office:     EXCHANGE  SQUARE. 
A,  DzNNisTOUN,  Agent.                                            Thomas  Lillie,  Sub-Agent. 

167  Branches  throughout  Scotland. 
Banking  Business  of  evary  description  transacted.  Accounts  opened  and  Agency 
business  undertaken  for  Foreign  ^nd  Colonial  Banks  and  other  financial  estab- 
lishments.    Drafts,  Circular  Notes,  and  Letters  of  Credit  issued  — available 

Head  Office:  YOKOHAMA. 

Branches  and  Agencies  at 
Bombay.                         Honolulu.                  Newchwang.                 Shimonoseki. 
Buenos  Ayres                 Hong  Kong.              New  York.                      Singapore. 
Calcutta.                          Kobe.                          Osaka.                              Sourabaya. 
Changchun,                     Los  Angelel.             Peking.                            Sydnejr. 
Dairen  (Dalny).              Lyons.                        Rangoon.                         Tientsin. 
Fengtien  (Mukden).       Manila                      San  Francisco.             Tokyo. 
Hankow.                          Nagasaki.                   Seattle.                            Tsinanfu. 
Harbin.                                                           Shanghai.                      Tsingiau. 

The  Bank  buys  and  rac«ivu  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  alaewhere, 
and  transacts  Central  Bankijig  Business. 

Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  application. 
London  Office:   7,  BISHOPSGATE,  E.C.«. 

K   TATSDMl,  Manager. 

throughout  the  world.      Cable  transfers  are  also  made.     Deposits  reoeiTedat 
interest  repayable  at  call  or  at  notice.    Correspondence  invited. 

THE   BANK  OF  ADELAIDE. 

(Incorporated  by  Act  of  Parliament,  1S65.) 
AutheriMd  Capital         -    fi1,IN0,000.              Subscribed  CaplUI    •    -    SnS,«M 

Paid-up  Capital        f5<».o«> 

Reserve  Fund          555.ooo 

THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 

£1,055.000 

Uncalled  Capital 115,000 

Reserve  Liability  of  Proprietors        633,000 

Keserve  Fund  . .    . .  £700,000    0    0  |  Reserve  Profits    . .  £19,339 
Beservea  Liability  of  Shareholders  £250,000. 

Uraftit  issued.  Remittances  cabled,  Bills  negotiated   or  collected,     Deposits 
reoeived  tor   fixi'd  pi^ricdi  ai  rates  10  oe  ascertained   on  application,  and  all 
bankinf!  and  exchange  business  connected  with  Western  Australia  conducted 
through  tb(^  London  A^nts,  The  Bank  Of  Adelaide,  U.  LeadenhallBc.*  E.G.  3. 

fl,8o5,ooo 

London  Office~ii,  Leadenhall  Street,  B.C.  3. 

BILLS  on  Australasia  purchased  or  collected. 

DRAFTS  issued  and  REMITTANCES  cabled. 

DEPOSITS  teceivod  for  fixed  periods  at  rties  to  be  ascertained  on  application. 

PERCY  ARNOLD,  Mana«er. 

470 


Zbc  Jnvcatore'  IRevtew. 


M.W    i8,    lyiS. 


W^iOtr:-.  ~. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office  i  15,  Graccchurch  Street,  London,  E.C.  S. 


Capital  Authoriied         

Capital  Issued      

Capital  Paid  Up  ... 

Reitfve  Fund  (Undivided  Profits) 


£1,500,000 

1,125,000 

562,500 

708,432 


Branches  t 

INDIA,   BURMAH.   CEYLON.    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS,    MAURITIUS. 

The  Bank  buys  and  sells  Bills  of  Eichanfe,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  East,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.    IUt«i  for  other 

periods  on  application. 

On  oupnent  aooounta  interest  is  allowed  at  1  per  c*nt.  p«  anonm  on 

daily  balances. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1863. 

Authorised  Capital  £4,000  000 

Paid-up  Capital  1,800,000 

Reserve  Fund    2,000,000 

■RANCHES- 
ARGENTINE.  —  Buenos    Aires,    Rosario,    Mendora,    Concordia,    Bahia 
Blanca,  Cordoba,  Tucumkn,    Parana,   Barracas  (Buenos  Aires),   On«e 
(Buenos  Aires),  Boca  (Buenos  Aires),  Calle  Santa  Ti  (Buenos  Aires), 
Calle    B    de    Irigoyen    (Buenos    Aires)       URUGUAY.— Montevideo, 
Montevideo   Agency   (Calle    Rio    Negro),    Paysandu    (Agency),   Salto 
(Agency).       BRAZIL.  —  Rio   de   Janeiro.    Sao    Paulo,    Santos,    Per- 
nambuco,  Para,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).     CHILI— 
Valparaiso,  Santiago.      FRANCE— Paris  (16  Rue  HaUvy).     AgenoT  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 
advanced  upon  or  sent  for  collection.— 7,  Princes  Street,  E.C.  1. 


THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 

Head  Office— 71,  Old  Bioid  Straet,  E.C. 

Subscribed  Capital         fi1,276.747     10    O 

Paid  up  Capital 669,685       O    O 

Reserve  Fund  and  Undivided  Profits         ..  409,626       1     1 

Reserve  Liability  of  Proprietors  .,  606,962    10    0 

REMITTANCES  made  by  CABLE. 

DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issaed  upe. 
Branches  and  Agents. 

BILLS  on  Australasia  NEGOTIATED  or  ssnt  for  collection. 

DEPOSITS  RECEIVED  for  periods  and  at  rates  which  may  be  asawtstaad 
on  appUcation,  and  Banking  Business  of  every  dssertptieo  aeadasMd 
wilb  AaslTalia. 


ENGLISH,    SCOTTISH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

Hend  Ofnoa— 3B,  X^ombapd  Stvaet,  B.C.  3. 

Subscribed  Capital £1,078,875    0    0 

Paid-up  Capital 339,437  10    s 

Further  Liability  ot  Proprietors     ..        ..  539,43710    o 

Reserve  Fund 300,000    o    0 

LETTERS  OF  CREDIT  and  DRAFTS  on  the  Branches  and  Agsnolas  of 
the  Bank  in  Australia  can  be  obtained  at  the  Head  Office,  or  throtigh  the  Aaenti 
of  the  Bank,  in  the  chief  Provincial  towns  throughout  the  United  Kingdom. 
REMITTANCES  made  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOTIATED  or  forwarded  for  COLLECTION. 

BANKING  and  EXCHANGE  Business  of  every  descriptton  ttaasasted  with 
Australia. 

E.  M.  lANION,  Manager. 


BANK    OF    NEW    ZEALAND. 

(Incorporated  July  iglh,  1861.) 
BANKERS  TO  THE  NEW  ZEALAND  GOVERNMENT, 
London  Office:  i,  Queen  Victoria  Street,  London,  E.C. 4. 

AUTHORISED  CAPITAL        £5,500,000 

SUBSCRIBED  CAPITAL. 

Four  per  Cent.  Guaranteed  Stock         . .  r.jg  088 

"^'!  JPfe/«r«n<:e  Shares  issued  to  New  Zealand'covernment        '.'.  soo.'ooo 

„^,.    Pf'fe""!:''  Shares  issued  to  New  Zealand  Government        ..  250,000 

Ordinary  Shares 1.500000 

Reserve  Fund  and  Undivided  Profits .Jj  ais  505 

Negotiates  and  collects  Bills  of  Exchange. 

Grants  drafts  on  its  Offices  in  New  Zealand,  Australia,  Fiji  and  Samoa.     Re- 
miUanocs  made  by  telegraphic  transfer. 

ALEXANDER  KAY,  MMsager. 


BANKS. 


BANK  OF  NEW  SOUTH  WALES 

Filablished  1117. 

Paid  up  Capital £3,904,860 

Rasarve  Fund     2,875,000 

Reserve    Liability    of 

Proprietors    3,004,860 

g1 0,684,720 

Head  Office :  BTDHKT,  REW  SOUTH  WALES. 

London  Directors : 

Sir  Frkderick  Grbkh,  Chairman, 

H.  L.  M.TaiTTOK,  Esq.  Waltir  S.  M.  Burhs,  Esq. 

David  George,  Manager.  J.  S.  Cahpbkll,  Secretary. 

Halkerstone  Mei.dp.uw,  David  Geddie, 

Aasiitant  Manager,  Accountant, 

The  Bank  has  S31  Branches  and  Agencies  in  the  Australian  States. 
New  Zealand,  Fiji,  Papua  (New  Guinea),  and  London,  and  Agents  and 
Correspondents  all  over  the  World,  on  whom  the  London  Office  grant& 
Circular  Letters  of  Credit  and  Circular  Notes.  Also  issues  Drafts  on 
demand.  Makes  Mail  and  Cable  Transfers.  Negotiates  and  Collects 
Bills  of  Exchange.  Receives  Deposits  lor  Fixed  Periods  on  terms 
which  may  be  known  on  appUcation,  and  transects  every  description  of 
Austrilian  Banking  business. 

London  Offloo:  29,  THREADNEEDLE  STREET,  B.C.  3. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  iNCORroRAiitD  1880. 

Authorised  and  Issued  Capital,  £6,000,000. 

Paid-up  Capital,  £s,ooo,ooo  ;  Reserve  Fund,  £j,ooo,ooo ;  together    £4,eoo,ooo 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves £8,oeo,ooo 

HEAD  OFFICE   -        -        -        71,  CORNHILL,  LONDON,   E.O.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  AostnlUn 
States  and  Dominion  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
on  application. 


FARROWS  BANK  LIMITED 


Authopised    Capital 
Shares    issued 
8hapeholdeps 


£1,000,000 

700,000 

4.000 


All  descriptions 
of  Banking  busi- 
ness, including 
the  collection  of 
Bills,  Dividends. 
Annuities,     etc., 

transacted. 
Foreign  Money 
exchanged  and 
Drafts  isiued  to 
all  parts  of  the 
World. 


Chairman:  I 

Mp.     THOMAS     FARROW.     .\ 

EVERY   DESCRIPTION       ' 

OF  JOINT-STOCK 
BANKING  JRANSACTED 

Foreign  Banking  business  of 
all  descriptions  undertaken. 

Agents  throughout  the  World 


Strong  Rooms  for 
the  »afe  custody 
ofdeeds and  other 
property  provided 
for  the  use  of  the 
Bank's  customers 

Stocks  and  Shares 
bought  ani  sold 
on  behalf  of  cus- 
tomers snd  (he 
public    genera'ly. 


HEAD      OFFICE  i      1,      CHEAPSIDEe      LONDON,     E.C.  2 

Branches  throughout  the   United    Kingdom,      a   h  &  co. 


Zbe  3n\>e0tor0'  "Review. 

SCALE  OF  CHARGES  FOR  ADVERTISEMENTS. 

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Discount  for  Series. — 5%  for  Thirteen,  10%  for  Twenty-six, 
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"INVESTORS'   REVIEW,  "    NonroLK   Housb,  NonroLK   Stkeei,  Strand 
London,  W.C. 


Zhc  Jnveetore'  IReview, 


Vol.  XLI.— No.  1,063 

New  Series. 


SATURDAY,  MAY  18,   1918. 


("1f.';':r.p."')  Price  6d. 


PUBLISHER'S    NOTICES 

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Telephone  No. :  Telegraphic    Address  : 

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The  Editor  cannot  undertake  to  return  rejected  com- 
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ANSWERS  TO  QUERIES. 

One    Reply    to    One    Question  —  One    Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
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Correspondents  can  have  their  lists  of  investments  overhauled 
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taken. 

Groups  o'  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


Passing   Events. 

A  slight  improvement  was  shown  in  last  week's  sales 
of  the  Bank  of  England  issue  of  N'ational  War  Bonds. 
The  increase,  however,  was  only  ;^"ioo,ooo,  and  the 
total  ^,'9,215,000,  whereas  the  actual  expenditure  of 
last  week  on  supply  services,  debt  interest  and  miscel- 
laneou.s  was  ;^57,46o,ooo.  Mr.  Bonar  Law,  in  reply- 
ing to  remarks  by  M.P.'s  on  his  Budget,  which  he  did 
in  his  usual  frank  and  engaging  fashion,  contrasted 
the  "  spectacular  loan,"  as  he  called  it,  of 
;£^i, coo, 000,000  raised  in  January  last  year  with  the 
more  modest  but  "  most  satisfactory  "  success  of  the 
advertising  agents'  Tank  and  Press  campaign  in 
furtherance  of  these  National  War  Bond  sales.  Up  to 
April  I,  excluding  the  War  .Savings  certificates,  they 
had  yielded  ;^'7i9,ooo,ooo.  This  is  undoubtedly  very 
good,  but  did  we  not  in  the  same  time  spend  more  than 
twice  as  much  ?  And  does  not  the  gap  go  on  widening 
between  what  we  receive  and  what  we  have  to  pay  ? 


are  improving,  the  resources  were  ;^548,ooo  short  of 
the  requirements.  Consequently  Exchequer  balances 
were  again  reduced  by  that  amount,  and  are  now  down 
to  ;^i4,305,ooo,  as  compared  with  ;^''23, 225,000  a  year 
back.  This  is  a  story  of  uneasy  financial  circumstances 
at  the  best,  but  we  are  not  going  to  belalxvur  the  point 
this  week.  These  are  the  facts.  Let  each  one  draw 
his  own  inference.  Out  of  last  week's  actual  revenue 
of  ;^,'9, 276,000,  it  may  be  added,  ;^4,992,ooo  came  from 
excess  profits  duty  and  income-tax.  Up  to  date  the 
revenue  of  all  kinds  has  yielded  ;^7 1,85 1,000  and  the 
expenditure  ha.s  been  ;^32i,  195,000,  including 
;^i 8,688,000  of  interest  disbursed  on  the  war  debt. 


Look  at  last  week's  display.  The  expenditure,  as  we 
have  said,  was  nearly  ;£i'57, 500,000,  of  which 
;^'54,984,ooo  was  laid  out  on  supplies,  on  the  public 
services;  that  is,  more  particularly  on  the  Army  and 
Navy.  This  was  at  the  rate  of  ;£'7,855,ooo  a  day,  and 
just  ^'9,276,000  of  the  money  was  provided  from  the 
revenue.  The  rest  ihad  all  to  be  borrowed,  and  as 
the  amount  of  floating  debt  falling  due,  or  coming  in 
for  renewal,  was,  as  usual,  massive,  the  total  outgoings 
reached  ;£' 12 1,2 44, 000.  The  Government  had  to  pay 
back  ;/^57, 320,000  on  due  Treasury  bills  and  also  to  pay 
off  ;£"5, 000,000  of  its  temporary  advances.  It  further 
had  to  pay  ;£r945,c>oo  on  account  of  War  Loans  and 
Exchequer  bonds,  presumedly  tendered  as  subscriptions 
for  the  National  War  Bonds  and  ;£^5i7,ooo  of  "  other  " 
war  debt  had  to  be  cancelled.  .So  ;^'72, 099,000  was 
raised  on  new  Treasury  bills,  or  ^14,715,000  more  than 
was  paid  off.  The  total  of  these  bills  now  outstanding, 
therefore,  amounts  to  ;£r972,85o,ooo.  Also  ;^i6,789,ooo 
was  received  from  "  other  "  war  debt  sources, 
;^ 1 3, 030,000  from  National  War  Bonds  .sold,  and 
;^7, 982,000  was  borrowed  on  temporary  advances,  or 
;^2,982,ooo  more  than  was  paid  off.  Consequently, 
temporary-  advances  now  stand  at  alx)ut  ;^87, 500,000, 
and  with  all  the  helps  available,  Including  ;^i, 400,000 
received  from  War  Savings  certificates,  sa'Jes  of  which 


In  introducing  the  \ote  for  the  Board  of  Trade,  Sir 
\.  Stanley  gave  some  very  interesting  information  with 
regard  to  the  actual  volume  of  our  imports  and  exports 
since  the  war  disorganised  and  changed  the  character 
of  our  foreign  commerce.  In  1917,  he  said,  the  value 
of  our  imports  amounted  in  round  figures  to  1,065 
millions,  and  of  our  exports  to  595  millions,  including 
re-exports.  But  if  the  same  price  level  was  assumed 
for  1917  as  for  1913,  the  value  of  imports  would  be  only 
545  millions,  and  of  exports  375  millions.  .Vcccpting 
these  adjusted  figures,  it  would  be  found  that  the  de- 
crease in  the  volume  of  o\Xx  imports  was  about  40  per 
cent,  and  of  our  exports  about  30  per  cent.,  as  com- 
pared with  1913.  In  other  words,  we  imported  last 
year  only  two-thirds  of  the  amount  we  did  before  the 
war,  and  it  is  expected  that  this  year  the  volume  will  be 
cut  down  to  one-half  of  the  pre-war  level.  Of  course, 
allowance  has  to  be  made  for  shipments  direct  to  the 
Continent  to  make  provision  for  our  vast  armies 
abroad,  and  other  considerations  have  also  to  l>e  taken 
into  account.  Trade  with  the  enemy,  which  was  a  very 
important  factor  before  the  war,  has  been  entirely  cut 
off,  and  there  has  been  a  practical  cessation  of  our 
trade  with  Belgium  and  Rumania,  while  of  late  Russia 
also  has  been  almost  completely  eliminated.  Apart 
from  these  influences,  it  must  be  remembered  that  the 
character  of  our  foreign  trade  has  changed  enormously, 
partly  owing  to  the  shipping  restrictions  and  also  be- 
cause the  wfiole  basis  of  normal  conditions  has  been 
blotted  out.  .Sir  A.  Stanley  tells  us  that  it  is  estimated 
that  more  than  one-half  of'  all  the  workpeople  engaged 
in  industry  are  doing  work  on  Government  account.  It 
follows  as  a  matter  of  course  that  whatever  imports  we 


472 


ttbe  Jnve8tor6'  IReview. 


Mav   i8,   igi8. 


have  obtained  are  mainly  required  for  (jovernmcnt  pur- 
poses. Just  so,  and  Sir  A.  Stanley  goes  on  to  marvel  at 
the  wonderful  resources  which,  he  says,  have  been  dis- 
covered in  our  own  country.  What  a  blessing  it  must 
be  to  have  a  mind  that  can  work  through  these  curious 
ellipses  !  We  get  along  somehow  or  other,  because 
almost  every  ounce  of  industrial  effort  is  diverted  into 
war  work,  and  if  you  get  sullicient  iron,  cotton,  wool, 
and  wood,  there  is  nothing  else  to  worry  about  for 
the  time  being.  But  there  must  be  some  consideration 
for  what  is  likely  to  happen  after  the  war.  At  present 
we  get  a  wonderful  output  of  materials  for  war  pur- 
poses, but  the  goods  received  are  mainly  elemental,  and 
have  not  the  remotest  relation  to  the  complicated  trade 
conditions  which  had  to  be  faced  in  peace  times,  and 
which  may  become  very  much  more  acute  after  the 
war.  For  the  time  being  all  the  shipping  we  have 
available  has  to  be  used  to  bring  here  essential  food- 
stuffs and  raw  materials,  and  even  in  that  respect  the 
Control  has  failed  lamentably  both  with  regard  to  Aus- 
tralian and  Argentine  wheat  and  wool — millions  of 
pounds'  worth  1)eing  left  to  rot  because  ;^5  to  ;^5o  per 
week  Whitehall  clerks  thought  they  knew  as  much 
about  shipping  as  the  men  who  had  spent  their  whole 
lives  studying  the  complicated  problems  which  crop  up 
in  the  course  of  their  business.  Certainly  it  is  true 
that  the  resources  of  this  little  island  have  proved  to  be 
far  greater  than  it  would  have  been  safe  to  reckon  on 
in  pre-war  times,  but  requirements  have  been  reduced 
to  the  most  elementary  fundamentals,  and  we  are  not 
helped  in  trying  to  gauge  the  future  by  taking  the  past 
four  years  as  a  guide  to  what  is  likely  to  happen  when 
at  long  last  peace — the  Allies'  peace — is  accomplished. 


What  is  happening  in  Russia?  No  one  knows,  nor 
can  we  light  upon  anyone  who  possesses  reliable  in- 
formation. It  would  seem,  however,  that  Leninism  is 
coming  up  against  the  difficulties  that  it  has  created, 
and  that  out  of  the  chaos  may  soon  emerge  a  beginning 
of  a  new  order  of  life.  It  was  easy  to  upset  the  old 
order,  to  cancel  treaties,  to  seize  property  of  every 
description,  public  and  private,  and  to  proclaim  to  a 
dazed  and  credulous  population  that  henceforth  all 
things  were  to  be  in  common,  that  there  were  to  be 
neither  rich  nor  poor,  but  that  everyone  was  to  enjoy 
universal  peace  and  plenty.  But  the  realisation  of  this 
mad  dream  soon  proved  impossible,  and  now  the  per- 
petrators of  the  crime  by  which  Russia  was  cast  at  the 
feet  of  the  arrogant  Prussian,  bound  and  helpless,  Lenin 
and  his  associates  or  dupes,  are  filled  with  alarm.  He 
would  resist  the  treacherous,  cruel  foe  now  that  the 
Russian  people  have  no  arms  with  which  to  fight.  In 
some  sense  this  man's  reversal  of  attitude  is  of  small 
moment,  but  in  regard  to  the  state  of  Russia,  it  may 
have  considerable  significance.  We  have  an  idea  that 
beneath  the  surface  things  are  fermenting  throughout 
Russia,  and  working  towards  a  denouement  which  may 
surprise  us  all.  There  are  rumours  of  fights  in  many 
places,  of  war  still  going  on  in  Finland,  of  revolts  in 
Moscow,  of  uprisings  in  Caucasia,  of  this  general  and 
that  colonel  raising  armies  and  making  headway  ;  but 
the  most  significant  fact  of  all  which  emerges  from  the 
darkness  is  the  conduct  of  the  German  robber.  He  is 
busy  annexing,  and  in  his  sottish  but  cunning  astute- 
ness attempting  to  assimilate  what  he  plays  brute  to- 
wards, and  alvvavs  with  the  bombastic  affectation 
of  the  r61e  of  ''liberator."  William,  "by  the 
grace  of  God  "  still  alive,  has  "  liberated  " 
Lithuania,  and  declared  it  "a  free  and  inde- 
pendent State,"  but  at  the  same  time  takes  care 
to  indicate  that  the  convention  to  be  concluded  be- 
tween this  "  indpendent  "  State  and  the  German  Empire 
will  see  to  it  that  Lithunia  "participates  in  the  war 
burdens  of  Germany  which  have  served  to  procure  her 
liberation."  A  "  firm  alliance  "  on  the.se  terms  is  to  be 
made  between  this  Western  province  of  Russia  and  the 
Prussian  aggressor,  all  in  the  usual  Alsace-Lorraine 
manner.  It  is  the  same  everywhere.  Prussian 
interests  must  come  first,  and  the  Prussian  de- 
vastation   of    Germany    itself    has    proceeded    so    far 


that  it  has  become  an  imperative  necessity  to  en- 
slave wherever  possible  in  order  to  get  the  means 
of  subsistence.  That  this  is  .so  is  a  most  en- 
couraging fact.  The  Germans  are  by  their  fjehaviour 
welding  Russia  anew,  and  out  of  the  present  welter  of 
misery  and  strife  may  arise  a  national  unity,  even  if  a 
unity  of  federated  States,  which  will  do  more  to  turn 
back  and  confine  the  Prussian  brute  in  his  inhospitable 
northern  lands  than  any  number  of  armies.  Poland  and 
Russia  should  act  together  in  this  agony,  and  the 
Southern  Slavs,  supported  by  Italy,  should  join  in  a 
league  that  will  ensure  them  their  individual  and  national 
freedom  after  a  fashion  and  to  an  extent  that  would 
never  have  been  possible  by  mere  parchmented  agree- 
ments. It  is  well,  therefore,  not  to  despair  about  the 
present  darkness  and  division  which  enshrouds  Russia, 
for  we  have  confidence  that  in  the  end  all  the  Slav  peoples 
will  be  indeed  free.  .-Xnd  in  the  meantime  wherever 
and  whenever  opportunity  offers  we  should  remember 
Sir  George  Buchanan's  advice  and  "  help  Russia." 


We  were  misled  by  the  summaries  of  the  "  peace  " 
treaty  last  week  in  saying  that  Germany  had  exacted 
no  indemnity  from  Rumania.  In  a  technical  sense  the 
statement  was  true,  but  in  actual  fact  the  whole  of 
Rumania  is  enslaved  by  way  of  "  indemnity  "  by  the 
greedy  Prussian.  Xot  only  has  he  swept  away  nearly 
8,500  square  miles  of  Rumanian  territory,  and,  as  we 
explained  last  week,  annexed  the  oil  regions  and  taken 
a  prior  lien  on  the  grain  crops,  but  by  the  supple- 
mentary treaty-  has  lx)und  her  to  indemnify  the  Ger- 
mans for  all  damages  suffered  by  them  on  Rumanian 
territory  "  as  the  result  of  the  military  measures  of  one 
of  the  belligerent  Powers."  This  stipulation  also 
applies  to  the  losses  which  the  Germans  have  suffered 
as  participants,  and  especially  shareholders  of  under- 
takings situated  in  Rumanian  territory.  A  commission 
is  to  assemble  in  Bukarest  to  as.s€ss  these  losses,  and 
obligation  to  indemnify  is  to  be  applied  in  favour  of 
neutral  nations  as  well.  That  is  to  say,  Rumania  is  to 
pay  neutrals  an  indemnity  for  damages  suffered  by 
them  as  result  of  German  military  measures.  Neither 
is  the  realised  wealth  left  in  the  country  exempt.  The 
balances  and  deposits  of  the  National  Bank  of  Rumania 
now  at  the  German  Reichsbank,  Clause  11  of  the  Sup- 
plementary Treaty  says,  shall  remain  there  for  five 
years,  and,  if  Rumania  falls  behind  with  an  instalment, 
for  ten  years  as  a  security  for  Rumania's  public  debt 
service  as  regards  the  Germans.  These  moneys  in  the 
hands  of  the  Reichsbank  may  be  also  drawn  upon  if 
necessary  to  pay  interest  and  redeem  drawn  Ixjnds. 
Thus  at  all  points  Rumania  is  shackled,  and  the  only 
comfort  one  has  in  contemplating  such  terms  is  that 
their  harshness  will  ensure  their  ultimate  defeat.  But 
meantime  the  hardship  of  the  Rumanian  people  may 
well  become  past  bearing. 

In  the  Dominion  Hou.se  of  Commons  Mr.  Borden  has 
announced  that  the  Government  hopes  to  be  able  in 
next  session. of  Parliament  to  make  proposals  for  the 
nationalisation  of  the  whole  of  the  railway  systems  in 
the  country  with  the  exception  of  the  Canadian  Pacific. 
The  Canadian  Northern  has  already  been  taken  over, 
and  it  is  inevitable  that  the  Grand  Trunk  Pacific  should 
also  be  acquired,  and  in  order  to  provide  that  system 
with  an  eastern  outlet  it  would  be  necessary  to  secure 
the  parent  Grand  Trunk  Railway.  Indeed,  the 
Government  has  already  made  an  offer  to  the  directors 
of  the  latter  company,  who  replied  with  a  counter- 
proposition  which  was  not  acceptable,  and  further 
negotiations  will  be  continued  by  Ministers  coming  to 
Europe  during  the  summer.  Owing  to  the  enormous 
increase  in  working  expenses  the  Grand  Trunk  is  not 
in  a  favourable  position  to  drive  a  hard  bargain,  but  we 
hope  a  fair  and  reasonable  compromise  will  be  arrived 
at.  Meantime  the  outlook  does  not  improve.  .An 
arrangement  has  just  been  made  whereby  wages  of 
Canadian  railway  employees  will  be  increased  propor- 
tionately to  the  advance  on  the  .American  railroads, 
and  as  the  latter  have  their  nett  income  guaranteed  by 
the  Government  they  can  afford  to  be  generous  in  this 


May  i8,   1918. 


Zbc  Jnveetore'  TRevicw. 


473 


respect,   but  the  Canadian  lines  are  already  finding  it 
sufficiently  difficult  to  make  ends  meet. 


Evidence  of  the  remarkable  prosperity  which  Japan 
has  been  enjoying  is  furnished  by  the  report  of  the 
Yokohama  Specie  Bank,  Ltd.,  for  the  half-year  to 
December  31  last.  In  every  direction  the  figures  show 
a  wonderful  expansion,  which  may  be  most  concisely 
visualised  in  the  fact  that  the  balance-sheet  now  totals 
982,756,000  yen,  an  increase  of  no  less  than  406  mil- 
lions, as  compared  with  the  end  of  1916,  which  in  turn 
showed  an  advance  of  193  millions  over  1915.  In- 
cluding 2,227,000,  or  800,000  yen  more,  brought  in,  the 
gross  profits  were  51,965,000  yen,  an  increase  of 
20,300,000,  following  a  gain  of  10,800,000  yen  in  the 
corresponding  period,  but  interest,  expenses,  &c. ,  ab- 
sorbed 19,400,000  more  at  46,084,000  yen,  and  the 
balance  available  for  appropriation  is  5,880,000  yen. 
Out  of  this  the  usual  dividend  at  the  rate  of  12  per 
cent,  per  annum  is  paid,  and  the  allocation  to  reserve 
fund  is  doubled  at  one  million,  leaving  one  million  more 
at  2,720,000  yen  to  be  carried  forward.  Deposit  and 
current  accounts  are  almost  exactly  doubled  at  527  mil- 
lions, and  bills  payable,  acceptances,  &c.,  are  140  mil- 
lions up  at  368,910,000  yen.  Cash  in  hand  has  in- 
creased 9,200,000  to  39,915,000  yen,  and  balances  at 
bankers  are  97  millions  higher  at  133,320,000  yen. 
Discounts  and  advances  have  risen  47  millions  to 
225,532,000  yen,  and  there  is  an  expansion  of  no  less 
than  250  millions  at  551,767,000  yen  in  bills  receivable, 
&c.  It  is  a  wonderful  display  at  every  point,  and  the 
bank  now  ranks  high  among  the  leading  financial 
houses  of  the  world.         

Splendid  results  are  shown  by  the  Fine  Cotton 
Spinners'  and  Doublers'  .Association,  Ltd.,  for  the  year 
to  March  31.  After  charging  ;^i8o,c)00,  or  ;^40,ooo 
more,  to  depreciation,  and  providing  for  excess  duty  on 
the  higher  scale,  the  nett  profits  were  only  ;^9,ooo  less 
at  ;^7oi,i30.  For  depreciation  of  investments, 
;^io,ooo  more  at  ;^i 25,000  is  set  aside,  and  other 
funds  get  ;^45,ooo,  against  ;^io,ooo,  but  last  year 
£75,000  was  written  off  for  contingent  losses  on 
foreign  debts,  and  with  a  larger  amount  brought  in, 
the  available  balance  is  ;^23,6oo  higher  at  ;^56i,930. 
The  ordinary  dividend  is  again  10  per  cent.,  but  it  has 
to  be  paid  on  ;^200,ooo  more,  and  the  balance  forward 
is  increased  by  ;^i2,ooo  to  ;^i52,430.  Creditors  have 
increased  ;^46o,ooo  to  jQi, 7 27,000,  and  the  amount 
owing  to  bankers  is  up  ;^i23,c>oo  at  ;^i, 215,000,  but 
;^475,ooo,  or  ;^30o,ooo  more,  of  this  is  on  account  of 
War  Loan  advances.  Properties,  plant,  &c.,  have  been 
reduced  ;^i30,ooo  to  ;^5, 122,000,  while  stocks  are  up 
;^i, 500,000  at  ;^3,576,oc)0,  and  debtors  have  increased 
;^550,ooo  to  ;^i, 995,000.  It  is  a  magnificent  business, 
and  as  all  enemy  debts  have  been  written  off  as  bad,  the 
position  is  really  stronger  than  appears  on  the  surface. 


$433,000,  and  as  operating  expenses  were  rather  less 
the  nett  income  was  $445,000  higher  at  $780,000.  After 
placing  $87,000  more  at  $163,000  to  reserves,  the  nett 
profit  is  $618,000,  an  increase  of  $358,000,  and  the 
surplus  is  raised  to  $1,420,000,  while  the  reserves  are 
$134,000  higher  at  $573,000.  When  war  was  declared 
with  Germany  all  commercial  traffic  was  suspended,  and 
the  company's  stations  were  taken  over  by  the  Navy 
Department  of  the  Government,  but  it  is  stated  that 
"  reasonable  rental  compensation  arrangements  have 
been  agreed  to. "  Two  large  additions  have  been  made 
to  the  factory  in  New  Jersey,  and  a  third  addition  is  in 
course  of  erection,  while  the  company  is  also  busily 
engaged  in  training  operators  and  engineers.  An  im- 
portant development  is  the  organisation  of  the  Pan- 
American  Wireless  Telegraph  and  Telephone  Co.,  in 
which  the  Marconi  Co.  holds  a  large  interest,  and 
through  which  its  activities  will  be  extended  to  cover  all 
the  Americas.  The  concession  for  a  station  in  the 
Argentine  has  already  been  secured,  and  it  is  proposed 
to  erect  a  chain  of  high-power  stations  which  will  con- 
nect the  United  States  with  Mexico,  the  West  Indies, 
and  Central  and  South  America. 


As  might  be  expected,  Babcock  and  Wilcox,  Ltd., 
continues  to  do  an  extremely  profitable  business  in 
spite  of  the  increased  cost  of  labour  and  raw  materials. 
Last  year's  manufacturing  profit  was  a  trifle  of  j£^3,ooo 
less  at  ;^520,ooo,  but  more  was  received  by  way  of 
interest  and  dividends,  so  that  after  paying  a  larger 
amount  in  income-tax  the  nett  profit  is  _;^6,ooo  up  at 
;^,'445,ooo.  Reserve  again  gets  ;^i50,ooo,  raising  it  to 
;^900,ooo,  and  the  dividend  of  15  per  cent,  (tax  free) 
for  the  year  is  repeated,  so  that  with  ;^  14,000  more 
brought  in  the  carry  forward  is  increased  by  ;^20,ooo 
to  ;(f 77,000,  subject  to  excess  profits  duty.  So  far  as 
we  can  make  out  the  company  has  escaped  this  impost 
up  to  now.  There  is  a  dividend  equalisation  fund  of 
;^245,ooo,  and  the  reserves  now  amount  to 
;^i,i45,ooo,  against  the  share  capital  of  ;^i, 939,000 — 
there  are  no  debentures — so  that  another  bonus  scherne 
similar  to  that  of  1912,  when  100  per  cent,  was  paid 
in  ordinary  shares,  would  seem  to  be  foreshadowed. 
Creditors  have  increased  ;^37o,ooo  to  ;^776,ooo,  while 
cash  balances  are  up  ;^iog,ooo  at  ;^50i,ooo,  invest- 
ments ;£^340,ooo  at  £7i,i62,ooo,  and  stocks  ;^220,ooo 
at  j^i, 100,000,  but  properties,  &c.,  have  been  written 
down  ^"70,000  to  ;^555,ooo.  A  Spanish  subsidiary 
company  with  a  capital  of  20  million  pesetas  has  been 
formed,  and  will  doubtless  help  further  to  enhance  the 
prosperity  of  the  business. 


In  spite  of  the  higher  income-tax  the  revenue  of  the 
Industrial  and  General  Trust,  Ltd.,  for  the  year  to 
March  31  shows  an  increase  of  ;^i  1,000  at  ;^i99,400, 
and  as  usual  the  balance  at  the  credit  of  realisations 
account  (of  which  no  details  are  given)  has  been  applied 
in  providing  for  depreciation  on  certain  investments 
and  for  contingencies.  After  paying  debenture  interest 
and  placing  ;^35,ooo,  or  ;^i  1,000  more,  to  reserves 
(which  now  stand  at  ;<^672,5oo),  the  dividend  of  10  per 
cent,  on  the  ordinary  stock  is  repeated  and  the  balance 
forward  is  slightly  larger  at  ;^63,400.  Investments 
have  increased  ;^35,ooo  and  now -stand  at  ;^4,243,ooo, 
but  loans  and  advances  have  been  reduced  by  ;^25,ooo 
to  ;^44,300.  A  full  list  of  investments,  carefully  classi- 
fied, is  given  as  usual,  but  it  is  stated  that  owing  to 
war  conditions  a  reliable  valuation  is  not  at  present 
practicable.  It  is,  however,  reasonable  to  assume  that 
the  reserve  and  contingency  funds  fully  cover  whatever 
depreciation  may  have  to  be  faced,  and  the  revenue 
shows  that  the  earning  capacity  has  not  been  Impaired. 

Although  shareholders  in  the  Marconi  Wireless  Tele- 
graph Co.  of  America  are  not  yet  in  sight  of  a  divi- 
dend, very  substantial  progress  was  made  last  year. 
Gross  earnings  amounted  to  $1,230,000,  an  increase  of 


THE 


LONDON  CITY  &  MIDLAND 
BANK  UMITED. 

Head  Office  s  5,  THREADNEEDLE  ST.,  LONDON,  E.C.2. 
Overseas  Branch  :  65  &  66,  Old  Broad  St.,  London,  E.C.  2. 


Subscribed  Capital 
Paid-up  Capital 
Reserve  Fund  - 


£24,920,232 

.        5,191,715 

4,345,241 


(2nd   May,    1918.) 

Deposits   .        -        •        -       £230,030,585 
Cash   in   hand   and   Balances 

at  Bank  of  England-  -  75,012,029 
Money  at  Call  and  Short  Notice  8,280,522 
Bills  of  Exchange  -    23,305,323 

OVER  1,000  OFFICES  in  the  UNITEO  KINGDOM. 

This    Bank    will     collect     for     its 

Customers     free    of    commission, 

cheques   on   the    Belfast   Banking 

Company   Limited. 


474 


^be  Jnvestore'  IReview. 


May  i8,   1918. 


Owing  doubtless  to  the  higher  income-tax  the  revenue 
of  the  Bankers'  Investment  Trust,  Limited,  again  shows 
a  reduction  of  ;£,3,ogo  at  ;£,"i  10,300,  but  this  was  offset 
by  the  larger  amount  brought  in,  and  the  available 
balance  of  ;687,45o  is  practically  the  same  as  at  April 
30  last  year.  After  again  placing  ;^' 13,000  to  reserve 
the  dividend  of .  5  per  cent,  on  the  deferred  stock  is 
repeated,  and  ;£^io,330  remains  to  be  carried  forward. 
Balance  profit  on  realisation  of  investments  and  bonds 
paid  off  amounted  to  only  ;^'4,850  against  £22,^20, 
and,  as  usual,  this,  together  with  the  appropriation  to 
reserve,  has  been  written  off  the  cost  of  securities, 
leaving  the  reserve  at  ;^ioi,78o.  Investments  show  an 
increase  of  ;^i 3,000  at  ^'2,837,000,  but  cash  is  ;^i6,ooo 
down  at  ;^25,95o.  The  usual  complete  list  of  securities 
held  is  appended  to  the  report. 


The  substantial  progress  made  by  the  Government 
Gold  Mining  Areas  (Modderfontein)  and  the  Van  Ryn 
Deep  are  the  chief  features  of  the  reports  of  the 
Barnato  group  for  the  past  year.  The  former  in- 
creased its  profits  by  ;^^498,957,  partly  by  treating 
554,000  more  tons,  and  partly  by  crushing  higher  grade 
ore.  The  Government's  share  of  the  profits  was 
;^^230,333,  and  after  writing  off  ;^4t8,777  on  account 
of  past  development  work,  ;^i46,332  is  carried  forward. 
4n  exceptionally  large  addition  has  been  made  to  the 
ore  reserves,  as  is  shown  in  the  following  table,  in 
which  comparisons  are  made  of  the  results  of  the  past 
year  with  (hose  of  1916  : — 

dend, 


Profit, 
1917. 

Cons.  Lang 

Ginsberg    

£ 

229,392 
16,103 

708,923 
19,720 
46,756 

138,542 

Government  Areas. . 

New  Primrose 

Unified  M.R 

Van  Rvn  Deep 

Wit.  (Knight's) 

Profit, 
1916. 


£ 

284,396 
33.299 

209  966 
36.845 
50,264 

587,926 

'79.798 


Divi- 
dend, 
1916. 


% 

% 

■7l 

224 

10 

15 

.2* 

— 

5 

10 

«5, 

20 

424 

40 

35 

50 

For- 
ward, 
1Q17. 


£ 
59.082 

6  627 

146.332 

12,209 

13.481 

220,945 

81,126 


For- 
ward, 
1916. 


£ 

98,627 

•14,690 

280,498 

"■839 

10,955 

•72,334 
86,661 


Cons.  Lang 

Ginsberg   

Government  Areas 

New  Primrose 

Unified  M.R 

Van  Ryn  Deep 

Wit.  (Knight's)    


Yield, 

Yield, 

Profit, 

Profit, 

Ore 

1917. 

1916. 

1917. 

1916. 

Reserves. 

s 

s. 

s. 

s. 

Tons. 

24.89 

25.05 

7-78 

8.92 

2,132.778 

IS. 49 

20.69 

1.68 

340 

169,722 

;974 

2-.11 

10.69 

5-50 

7,016.000 

■  5-48 

1534 

1-66 

2-66 

167,900 

19.48 

19.29 

552 

5-74 

247,843 

43-63 

39-39 

24-09 

21.62 

2,258,598 

24.88 

2S.29 

7-59 

10  02 

1.317.900 

Inc.  or 
Dec. 


Tons. 

■    41.758 

—  100,782 
-f  2,086,000 

—  3r.4ii 

—  129,781 
+    89,747 

—  144.203 


The  Van  Ryn  Deep  also  had  a  more  profitable  year, 
chiefly  owing  to  the  milling  of  higher-grade  ore,  and 
the  outlook  for  this  mine  is  officially  described  as  ex- 
cellent. 


An  official  statement  has  now  been  issued  by  the 
Board  of  Trade  with  reference  to  the  important  new 
zinc  concentrate  contract  referred  to  on  April  27  in 
these  notes.  It  states  that  the  board,  representing  the 
British  Government  and  the  Zinc  Producers'  Associa- 
tion Proprietary  of  Australia,  have  signed  an  agree- 
ment for  the  purchase  by  the  Government  of  the  stocks 
of  Australian  zinc  concentrates  existing  on  Decem- 
ber 31,  less  reserves,  and  subject  to  the  reasonable  pro- 
tection of  .Australian  requirements,  the  production  from 
January  1,  1918,  up  to  250,000  tons  yearly  for  the  war 
period  and  one  year  thereafter,  and  300,000  tons  per 
annum  for  nine  years  thereafter.  The  Government 
also  secures  an  option  over  the  balance  of  production, 
subject  to  certain  reservations  ;  for  example,  provision 
for  the  requirements  of  the  Australian  zinc  refining 
works  and  the  fulfilment  of  existing  contracts.  The 
agreement,  which,  as  we  have  previously  explained, 
varies  an  earlier  agreement  by  enlarging  the  quantity 
and  modifying  the  purchase  terms,  provides  for  a  flat 
fate  of  prices  up  to  the  end  of  five  years  after  the  war. 
For  the  remainder  of  the  jjeriod  prices  will  be  deter- 
mined by  market  conditions,  with  the  "flat  rate"  of 
the  earlier  period  as  a  minimum.  What  the  "  flat 
rate  "  is  is  not  stated,  but  we  understand  that  it  is  a 
liberal  figure,  which  ensures  good  profits  to  the  Broken 
Hill  companies  for  ten  years  after  the  war.  Under 
that  part  of  the  old  contract  which  still  remains,  the 
Imperial  Government  will  take  during  the  same  period 
45,000  tons  of  Australian  produced  spelter,  which  will 
represent  the  balance  of  the  concentrates.  As  to  what 
the  Government  will  do  with  the  concentrates  Is  not 


stated,  but  the  British  smelters  have  not  the  capacity 
to  treat  the  quantity  of  concentrates  which  the  Govern- 
ment will  purcha.se.  Perhaps  the  plan  which  the  Gov- 
ernment will  follow  will  ensure  the  British  smelters  ob- 
taining the  100,000  tons  of  concentrates  which  they 
have  the  capacity  to  treat,  and  will  resell  the  balance 
to  foreign  buyers,  principally  in  Belgium  and  P'rance. 
But  we  ex]>ect  to  see  a  further  extension  of  Australian 
smelting  facilities  owing  to  the  great  economy  which 
would  l>e  effected  thereby  in  shipping  space,  for  one  ton 
of  spelter  can  tje  carried  for  every  three  tons  of  concen- 
trates. 


The  reports  of  the  Consolidated  Mines  Selection 
group  for  the  past  year  are  particularly  satisfactory,  for 
they  record  an  increasing  s9ale  of  profitable  operation, 
and  a  considerable  extension  of  its  areas  on  the  Far 
Eastern  Rand.  Additional  ground  has  been  secured 
by  the  Brakpan,  and  the  group  now  controls  the 
Daggafontein  Mine.  The  Springs  Mines  has  reached 
the  crushing  stage,  and  should  be  able  to  pay  a  divi- 
dend before  very  long.  The  group,  in  conjunction 
with  the  Anglo-American  Corporation,  has  secured  the 
lease  of  the  Rietfontein  East  area  of  2,236  claims  ad- 
jacent to  the  Springs  property.  The  report  of  the  Con- 
solidated Mines  Selection  Co.  for  191 7  shows  a  profit  of 
^164,246,  against  ;^i24,oo4.  Sales  and  commissions 
contributed  ;^99,ooo,  against  ;^49,ooo  in  1916.  Re- 
serve gets  ;^20,ooo,  or  ;^5,ooo  more,  the  dividend  is 
raised  from  22^  to  30  per  cent.,  and  the  carry  forward 
is  increased  from  ;(C9,2i6  to  ^29,149.  Apart  from 
some  interest  in  the  Russian  Slining  Corporation,  the 
companv  has  disposed  of  all  its  Russian  mining  in- 
terests at  a  profit.  Holdings  in  the  Itabira  Iron  Ore 
Co.  have  been  increased.  The  Rand  Selection  Cor- 
poration— formerly  known  as  the  Transvaal  Coal  Trust 
— increased  its  profits  in  191 7  from  ;^i  60,083  to 
^184,256.  Dividends  amounting  to  30  per  cent,  have 
been  paid,  against  27J  per  cent.,  and  the  carry  forward 
is  ;^i6,462  larger  at  ;^75,044.  The  profit  from  coal, 
;!<['i3,26i,  indicates  a  smaller  reduction  than  might  have 
been  looked  for  since  the  properties  were  transferred 
to  the  Tweefontein  United  on  September  i  last,  in  re- 
turn for  ;^45,ooc  in  cash  and  a  large  block  of  Dagga- 
fontein shares. 


Heavy  Taxation  and   Some    Magicians 
of  the  New  or  "Cubist"  Finance. 

The  Chancellor  of  the  Exchequer  has  stuck  to  his 
guns,  and  his  Finance  Bill,  embodying  the  Budget 
scheme,  was  read  a  second  time  in  the  Commons  last 
Tuesday.  We  cannot  say  that  we  expected  any  other 
conclusion  because  whatever  may  be  the  objections  held 
to  certain  tax  proposals,  when  it  comes  to  the  point,  and 
when  the  Chancellor  of  the  Exchequer  insists  that  he 
must  have  the  money,  the  most  doctrinaire  opponent  can 
do  nothing  but  give  way.  We  shall,  therefore,  have  the 
twopence  per  cheque  impost  to  meet  three  months  hence, 
and  the  higher  rates  of  postage  will  also  come  into 
operation  soon,  and  all  that  can  be  done  is  to  acquiesce 
and  do  our  best  to  adapt  ourselves  to  the  changed  con- 
ditions. But  we  shall  be  agreeably  surprised  if  the 
official  estimate  of  an  extra  ;£,"i,ooo,oc)o  comes  from  the 
twopenny  stamp  on  cheques,  and  are  not  at  all  sure 
that  the  nett  revenue  of  the  Post  Office  will  benefit 
appreciablv  by  the  increased  postal  charges.  All  such 
taxation  falls  with  the  greatest  severity  upon  the  poor 
— not  so  much  on  the  individual  amongst  the  poor  in 
his  or  her  private  capacity,  but  on  the  small  and 
struggling  man  of  business.  It  is  probable,  however, 
that  in  the  coming  time  this  meritorious  person  will  be 
elbowed  out,  and  as  the  trade  of  the  country  and  its 
industries  become  systematised  and  regulated  his  disap- 
pearance may  come  to  be  regarded  as  not  much  to 
moan  about.  There  is  no  knowing,  for  everythiiig  is 
falling  into  a  state  of  fluidity  in  public  and  private 
affairs.  But  the  necessity  laid  upon  us  to  save  by 
minimising  work  of  all  descriptions  renders  it  probable 
that  the  small  trades  will  disappear — be  absorbed. 

If  Mr.  Runciman  was  right,  however,  and  we  rather 


May   i8,   1918. 


Zbc  Jnvestors'  IReview. 


475 


Ihink  he  was,  speaking  from  our  own  limited  experi- 
•ence,  it  would  have  been  easy  to  draw  more  of  the 
needed  revenue  from  the  rich  without  harassment  of 
the  poor.  The  danger  of  taking  too  much  from  the 
multitude  is  that  the  wealth  springs  of  the  country  may 
dry  up  before  anybody  notices  it.  But  the  rich  could 
undoubtedly  bear  a  much  larger  weight  of  taxation  than 
has  even  now  been  laid  upon  them,  and'  many  are  will- 
ing enough  to  assume  the  load.  "  .\s  one  journeyed 
about  the  country,"  said  Mr.  Runciman,  "one  came 
across  men  of  means  who  said  that  they  would  gladly 
pay  whatever  scale  of  taxation  might  \x  imposed  upon 
them  by  the  Government,  and  that  they  would  invest 
all  their  surplus  resources  in  War  Bonds,"  but  they 
asked,  could  they  be  sure  that  the  money  so  provided 
would  be  spent  to  the  best  advantage?  That  is  a  side 
of  the  subject  on  which  neither  Mr.  Law  nor  any  other 
speaker  on  the  Government  side  dared  to  touch,  but 
without  doubt  the  revelations  which  have  been  made  by 
the  Comptroller  and  Auditor-General's  reports,  and  by 
the  scandals  revealed  in  sundry  public  trials,  have  tended 
to  disgust  many  people.  "  What  is  the  good  of  saving 
and  of  handing  our  savings  to"  the  Government  if  the 
money  is  flung  away  regardless  of  consequences?  "  too 
many  are  disposed  to  say.  That  feeling,  however,  must 
not  be  allowed  to  get  the  mastery.  Extravagance, 
waste  of  all  kinds,  is  inevitable  in  war  time  because  all 
men  who  have  the  handling  of  money  in  any  form  are  not 
uniformly  wise.  All  the  same,  it  is  necessary  to  carrv 
this  war  to  a  successful  finish,  and  in  doing  that  the 
nation  must  make  up  its  mind  to  bear  losses  and  foolish 
extravagances  of  all  kinds.  Money  losses  are,  after  all, 
least  onerous  to  bear,  and  we  hope  that  Mr.  Runciman  is 
right  in  saying  that  those  whose  incomes  were  subject 
to  taxation  "  would  be  just  as  ready  to  provide  6s.  8d. 
in  the  ;^  as  6s.,"  and  in  his  opinion  this  generosity  of 
feeling  and  "financial  patriotism"  had  been  less  ex- 
ploited by  the  Chancellor  of  the  Exchequer  than  it  might 
Tiave  been. 

Assuredly  the  rich  would  do  well  for  selfish  reasons, 
to  glance  towards  nothing  higher,  to  be  ready  to  pay 
half,  ay,  two-thirds  of  their  income  in  taxation  lest 
worse  befall.  For  if  the  Prussian  triumphed  he  would 
take  all.  Inevitably  at  a  time  like  this  many  minds  are 
already  exercised  about  the  future,  and  theories  of 
taxation,  of  debt  redemption,  of  commercial  inter- 
course, of  banking  and  credit  are  coming  to  the  surface, 
pointing  towards  a  time  when  here  at  home  many  will 
be  asked  to  surrender  their  all.  Signs  of  the  ferment 
under  the  surface  multiply,  and  must  not  be  lightly  put 
on  one  side,  not  even  the  most  wild-looking  among 
them.  We  have  before  us  a  book  called  "  A  Fraudu- 
lent Standard  :  An  Expo.sure  of  the  Fraudulent 
Character  of  our  Monetary  Standard  with  Suggestions 
for  the  Establishment  of  an  Invariable  Unit  of  Value." 
Its  author  is  Arthur  Kitson,  and  it  is  published  by  P.  S. 
King  and  Son,  Ltd.,  so  that  it  is  no  mere  hole-and- 
corner  affair  put  forth  by  a  "  crank  "  seeking 
notoriety.  Mr.  Kitson's  style  seems  imitative  of 
William  Cobbett's,  is  full  of  abusive  epithets  without 
being  strong,  and  betrays  a  serenity  in  ignorance  on 
many  topics  that  amuses.  But  the  man  is  in  dead 
earnest.  In  all  his  book  there  is  only  one  being  men- 
tioned who  always  comes  in  for  praise  unstinted,  and 
that  is  Sir  Edward  Holden,  the  distinguished  head  of 
the  great  London  City  and  Midland  Bank.  To  Sir 
Edward,  indeed,  the  laudation  [heaped  upon  him  by 
Mr.  Kitson  must  be  embarrassing,  because  it  seems  to 
•claim  him  to  be  a  supporter  of,  or  in  sympathy  with  the 
wild  monetary  expedients  put  forward  as  cure  all  and 
pay  all. 

Mr.  Kitson's  idea  of  progress  seems  to  be  as  old  as 
"*'  honest  money,"  and  as  fanciful  as  old,  but,  like  Sir 
Edward  Holden,  he  has  an  antipathy  to  the  Bank  of 
England,  and  roundly  calls  it  a  fraud,  never  misses  a 
-chance  to  curse  it.  He  hates  also  the  "  gold  standard  " 
with  a  perfectly  ignorant,  and  therefore  perfectly  un- 
trammelled, hatred,  so  the  lemedy  he  proposes  for 
all  our  debt  worries  ancT  monetary  hypocrisies  is 
tdrastic  enough  to  please  a  Lenin  amongst  revolution- 


aries. Instead  of  basing  a  country's  credit  upon  gold 
in  any  form  he  would  base  it  on  the  "  wealth  of  the 
nation  "  taken  in  bulk,  and  instead  of  issuing  loans — 
at  a  fine  profit,  as  he  is  careful  to  point  out,  to  the 
handlers  or  vendors  thereof— he  recommends  that  the 
Government  should  purchase  shares  of  our  banks  by 
"  exchange  of  War  Loan  Certificates  at  a  just  valua- 
tion," and  "  run  "  these  banks  with  their  pre.sent 
deficient  staffs.  But  for  what  purpose?  In  order  to 
use  their  machinery  to  dissolve  or  dissipate  the  nation's 
credit. 

Assume  the  wealth  of  the  nation  tchhe  so  manj'  thou- 
sands of  millions  in  pounds  sterling,  arid  with  the 
whole  sum  down  in  the  Bank  ledger  as  available  credit. 
The  whole  property  in  the  country  would  in  this  way 
become  national  in  the  sense  of  being  available  for  all. 
Instead  of  issuing  loans  the  Government  would  simply 
draw  upon  its  bank,  and  the  payments  made  by  said 
Bank  would  be  debited  against  the  national  wealth. 
Nothing  could  be  simpler.  Currency  could  be  emitted 
against  this  massed  wealth  on  an  arbitary  valuation 
and  to  any  extent  for  Government  or  other  purposes, 
and  the  Bank  would  make  all  the  advances  demanded 
of  it  for  nothing.  How  do  the  wealthy  among  us  relish 
a  prospect  of  this  kind  ?  Talk  of  conscription  of  capital, 
this  is  "  confiscation  "  entire  and  final.  "  It  is  absurd." 
Perhaps  ;  in  these  times  one  never  can  be  sure. 

From  "  The  Cities  Committee  of  the  Sociological 
Society  "  we  have  received  some  pamphlets  entitled 
"  Papers  for  the  Present,"  and  have  read  one,  entitled 
'■  The  Banker's  Part  in  Reconstruction,"  with  a  certain 
interest  and  some  curiosity.  Judging  by  the  style  the 
author  would  seem  to  be  Mr.  Victor  Branford,  whose 
faculty  for  inventing  new  labels  for  old  things,  be- 
wildering epithets  to  disguise  plain  facts,  is  familiar. 
Here  also  effort  is  made  to  face  the  currency  difficulty 
and  to  vulgarise  wealth  ;  to  conjure  it  out  of  the  hands 
of  the  people  who  now  own  it  and  devote  it  to  the  com- 
mon good.  Gold  would  be  deposed  from  its  position 
as  the  standard  of  value,  and  there  would  be  substi- 
tuted for  it  an  "  index  number."  As  that  index  num- 
ber went  up  or  down  the  value  of  the  ;£,"  as  measured 
by  its  purchasing  power  would  advance  or  recede. 
Proceeding  from  this  foundation  would  spring  a  liberty 
unlimited  to  create  credit  extending  in  all  directions 
down  to  the  humblest  of  rural  councils.  Supposing 
;^6o,ooo,ooo  was  to  be  spent  on  building  two  hundred 
thousand  cottages  of  ;£^30o  each.  A  public  utility 
society  would  be  formed  and  would  issue  currency  to 
the  extent  required  to  pay  for  those  houses.  Every 
hamlet,  in  fact,  might  create  its  own  currency.  And 
the  great  war  debt?  We  are  not  quite  sure,  but  rather 
think  that  also  might  be  paid  off  in  notes.  Why  not, 
indeed?       The   author,    however,    of   this   pamphlet   is 


BRITISH  AND  AMERICAN  NAVAL  and  MILITARY  FORCES. 


LLOYDS  BANK 
LIMITED 

(HEAD  OFFICE :  71,  LOMBARD  ST.,  E.C.  3.) 

with  nearly  900  Offices  in  England 
and  Wales,  offers  its  services  for 
negotiating  U.S.  Treasury  Drafts, 
Cheques  and  Bank  Notes,  and  trans- 
acting all  kinds  of  banking  business. 


FRENCH     AUXILIARY: 

LLOYDS  BANK  (FRANCE)  AND 
NATIONAL  PROVINCIAL  BANK  (FRANCE)  LTD. 

HEAD  OFFICE :  60,  LOMBARD  STREET,  E.C.  3  (Tei.por.rr  AJiirai . 

OFRCES  in  FRANCE  :    PARIS,  BORDEAUX.  BIARRITZ,  HAVRE, 

MARSEILLES  and  NICL 


476 


Zbc  3nve8tot8'  IReview, 


May   i8,   1918. 


modest  and  reasonable  after  his  manner,  and  there  is  no 
hint  at  confiscation,  or,  shall  we  say,  Itvitation,  of  the 
"  money  "  created  to  pay  for  houses  built.  It  is  to  be 
debt  that  will  be  paid  back  according  to  an  arranged 
scheme.  None  the  less  does  the  pamphlet  show  as 
vividly  as  Mr.  Kitson's  spluttering  book  a  readiness  to 
abolish  all  old  foundations  of  society  and  to  launch  into 
new  experiments  which  may  produce  consequences  as 
yet  undreamt  of,  with  all  the  light-headedness  of  the 
ignorant.  And  more  and  more  the  taxes  fall  short  of 
the  current  requirements. 


Brazilian    Trade   and    Finance. 

The  past  five  years  have  proved  a  very  tryiag  period  for  this 
South  American  Republic.  Before  the  war  economic  and  fiscal 
conditions  were  greatly  disturbed  by  the  rubber  debacle,  and 
when  the  oresent  cataclysm  overtook  Europe  the  dislocation  to 
finance  and  industry,  and  the  demoralisation  of  the  exchange, 
became  complete.  The  Government,  however,  set  themselves  re- 
solutely to  deal  with  the  situation.  New  channels  of  trade  were 
opened  up  to  replace  those  closed  through  the  loss  of  the  markets 
of  the  Central  Powers,  and  new  branches  of  production  were  de- 
veloped. Imports  were  drastically  reduced,  and  national  ex- 
penditure was  cut  down  to  the  lowest  possible  point.  The  can- 
cellation of  an  immense  amount  of  commercial  debt  was  accom- 
panied  by  a  substantial  improvement  in  the  value  of  the  milreis. 
Government  revenue,  sadly  depleted  by  loss  of  Customs  duty  on 
reduced  value  of  imports,  was  augmented  to  some  extent  by  resort 
to  other  means  of  taxation,  and  in  August  last  IJrazil  was  able 
to  bring  to  an  end  the  agreement  with  its  foreign  creditors,  and 
to  resume  cash  payments  upon  its  National  Debt.  The  value  of 
imports  showed  an  increase  in  1917,  accompanied,  we  imagine, 
with  a  larger  yield  frc.-n  the  Customs  duty  than  in  1916,  but  the 
value  of  the  imported  goods  was  far  below  thf  pre-war  level, 
and  it  is  doubtful,  even  after  allowing  for  new  sources  of  re- 
venue, if  incomings  are  sufficient  to  provide  for  administrative 
expenditure  cut  down  to  the  lowest  possible  point.  Support  is 
given  to  this  view  by  the  estimates  for  the  current  year,  a  deficit 
of  over  70,000  contos  paper  being  at  first  considered  as  within 
the  realms  of  possibility.  Fortunately,  however,  a  windfall  has 
come  to  hand  in  the  form  of  a  cash  payment  of  33,860  contos 
gold  from  the  French  Government  in  connection  with  the  acqui- 
sition of  the  German  vessels  formerly  interned  in  Brazilian 
ports.  With  the  help  of  this  payment,  the  anticipated  budget 
deficit  will  be  more  than  wiped  out ;  indeed,  the  Republic  is 
likely,  if  other  sources  of  revenue  come  up  to  expectations,  to 
finish  the  year  with  a  substantial  sum  in  hand. 

Economically,  Brazil  seems  to  be  at  the  moment  in  a  much 
sounder  position  than  has  been  the  case  for  some  years  past,  but 
all  the  same,  the  immediate  outlook  is  uncertain.  Considering 
the  conditions  obtaining  during  1917,  the  exports  and  imports  for 
that  year  can  only  be  regarded  as  being  exceedingly  satisfactory, 
but  they  are,  we  are  afraid,  far  from  indicative  of  the  present 
course^  of  trade.  During  the  whole  of  1917  the  movement  of 
Brazil's  seaborne  commerce  was,  of  course,  subject  to  much  re- 
striction, but  it  was  much  more  free  in  the  earlier  than  in  the 
latter  part  of  the  year,  when  the  scarcity  of  tonnage  became  more 
pronounced.  In  considering  the  import  and  export  figures  for 
1917  regard,  too,  must  be  paid  to  the  fact  that  the  increase  in  the 
aggregate  value  in  sterling,  particularly  during  the  last  few 
months  of  the  year,  was  to  a  large  extent  determined  by  the 
improvement  in  the  exchange.  For  the  first  nine  months  of  191 7 
the  averagevalueof  the  milreis  comes  outat  about  i2.66d.,  while 
for  the  rest  of  the  year  it  averaged  as  much  as 
i3.46d.,  an  increase  of  about  6.3  per  cent.  Exports  for 
1917  amounted  to  ;^59, 875,000,  an  increase  on  the  pre- 
vious year's  total  of  ;£4,865,ooo,  while  imports  totalled 
£44,510,000,  an  improvement  of  ^^4, 141,000  on  the  corre- 
sponding figure  of  1916.  Exchange  for  1916  averaged  about 
I2.i5d.,  and  for  1917  about  I2.88d.,  an  increase  of  about  6  per 
cent.  Allowing  for  this  factor,  it  will  be  seen  that  the  1917  figure 
for  both  imports  and  exports  represent  a  slight  advance.  But  the 
tendency  towards  the  end  of  the  year  was  unsatisfactory.  Thus 
the  increase  in  exports,  which  for  the  first  nine  months  amounted 
*°  46,158,000,  had  by  the  time  the  year  closed  fallen  to  ;f4,865,ooo, 
while  the  growth  in  the  volume  of  imports,  if  allowance  be  made 
for  the  improvement  in  the  exchange,  was  practically  arrested. 

So  far  we  have  seen  no  figures  for  the  current  year,  but  it  is 
to  be  feared  that  the  less  favourable  trade  movement  in  evidence 
during  the  last  three  months  of  191 7  has  become  more  pro- 
nounced. Coffee,  although  representing  a  smaller  ratio  to  the 
total  trade  of  the  country  than  in.  former  years,  is  still  the 
most  important  staple  article  of  commerce,  and  the  restrictions 
placed  upon  its  sale  and  shipment  cannot  but  react  unfavour- 
ably upon  the  trade  of  the  country.  Prohibition  in  Great 
Britain  has  been  in  force  for  marty  months.  France  and  the 
United  States  have  reduced  shipments  very  considerably,  while 
Scandinavia  has  ceased  to  take  practically  anything.  A  heavy 
stock  IS  accumulating  in  Brazil,  and  the  Crt)vernment  has  had  to 
commence  valorization.  The  French  Government  has,  it  Is 
true,  as  part  of  the  agreement  with  the  Brazilian  Government 
previously  referred  to,  undertaken  to  buy  from  Brazil  2,000,000 
bags  of  coffee  arid  merchandise  to  the  amount  of  100,000,000 
francs ;  but  the  aggregate  value  of  this  only  bears  a  relatively 
small  proportion  to  the  total  Brazilian  trade.  Foreign  meat 
shipments  may  continue  upon  an  increasing  scale,  but  the  ex- 


port of  manganese,  which  contributed  no  less  a  sum  thaa 
;^3,o62,ooo  to  the  total  exports  last  year,  is  at  the  present- 
moment  practically  at  a  standstill  owing  to  the  Central  Rail- 
way, through  lack  of  coal,  having  been  obliged  to  suspend  the 
transport  of  the  commodity.  If  the  volume  of  trade  falls  off 
there  will  be  an  attendant  deficiency  of  bills,  and  the  view 
which  is  held  in  some  quarters  that  the  exchange  will  probably 
touch  lower  levels  may  not  be  incorrect. 

We  are  not  suggesting  that  there  is  at  the  moment  any  Cause 
for  grave  uneasiriess,  but  the  position  appears  to  be  such  as  to 
ju.stify  a  note  of  warning  and  the  di.scouraging  of  the  memy 
over-optimistic  interpretations  that  are  placed  upon  the  present 
situation  and  outlook.  One  hears  far  too  much  of  accumulating 
favourable  trade  balances  and  of  producers  of  foodstuffs  grow- 
ing rich  on  the  needs  of  consuming  centres.  Much  of  the 
riches  that  have  accrued  to  the  Brazilian  producer  is  attri- 
butable to  high  prices.  Imported  articles  cost  infinitely  more 
than  before  the  war,  and  the  producer,  like  his  confrere  in 
European  countries,  operates  in  a  vicious  circle  of  economic 
conditions.  Then  as  to  the  heavy  trade  balances,  it  is  exceed- 
ingly doubtful  if  these  are  as  beneficial  as  appears  at  first  sight. 
The  exceptional  dimensions  of  these  balances  is,  of  course, 
largely  attributable  to  the  reduction  in  imported  goods,  and 
this  is  far  from  an  unmixed  blessing.  It  not  only  means  toss 
to  the  national  exchequer  through  the  falling  off  of  the  Cus- 
toms duty  on  imported  goods,  but  inability  to  purchase  articles 
requisite  for  the  progressive  needs  of  the  nation.  Prior  to  the 
war  Brazil  went  through  a  period  of  over-development,  and  an 
eventuality  of  this  character  is,  of  course,  to  be  guarded  against 
in  the  future,  but  a  certain  amount  of  progressive  development 
in  a  young  and  comparatively  undeveloped  country  is  of  first 
importance  if  it  is  to  continue  its  economic  progress;  and  this- 
inability  to  satisfy  its  requirements  for  imported  necessaries  is 
certainly  not  of  benefit  to  it.  And  concerning  this  progressive 
development  and  the  opening  up  and  further  exploitation  of  new 
sources  of  wealth  production  has  there  not  been  far  too  great  a 
tendency  in  many  quarters  to  lose  a  proper  sense  of  perspective? 
The  recent  efforts  of  the  Brazilian  authorities  to  open  up  new 
sources  of  wealth  production,  has  there  not  been  far  too  great  a 
our  unqualified  appreciation  and  approval,  but  wonders  cannot 
be  achieved  in  a  day. 

Much  of  the  success  of  Brazil  in  exporting  certain  new 
classes  of  produce  is  attributable  to  the  abnormal  conditions 
prevailing,  and  after  the  war  she  will  have  to  compete  with 
prices  in  a  world  market.  The  fertility  of  the  country  is,  we 
believe,  as  great  as  any  in  the  world,  but  cautious  people  will 
realise  that  there  is  a  long   row  to  hoe. 


By-the-Way  War  Notes. 

We  wish  it  were  possible  to  admire  the  Harmsworth-George. 
political  strategy  to  the  extent  of  its  boldness.  Any  feelings 
of  that  kind,  however,  are  checked  by  thought  of  the  risks  the 
nation  runs.  For  example,  when  last  week  the  storm  arose 
over  General  Maurice's  letter,  the  Press  worked  from  Carme- 
lite Street — and  Carmelite  Street  extends  its  influence  over  a 
good  many  Continental  journals — set  to  work  to  scatter  broad- 
cast the  idea  that  the  attack  led  by  Mr.  Asquith  was  a  demon- 
stration against  and  designed  to  upset  the  arrangement  by 
which  General  Foch  has  become  the  Commander-in-Chief  of  the 
whole  of  the  Armies  on  the  Western  front.  We  were  treated, 
the  day  after  the  publication  of  reports  of  the  debate,  to  extracts 
from  sundry  foreign  journals,  French  and  German  especially, 
emphasising  this  point  above  all  others.  Now,  that  was  most 
pernicious,  and  so  calculated  to  stir  bad  blood  that  we  venture 
to  say  no  suborned  traitor  could  have  done  the  country  a  greater 
disservice. 

The  Maurice  letter   did  not  originate  at  all    in  any  feeling 
of   jealousy   towards    General    Foch    and    his   position.     There 
never  has  been  any  disposition  here  to  cavil  at  or  resent  that 
eminent  soldier's  appointment.     It  has  been  universally  recog- 
nised that  the  change  was  necessary,  and  we  know  that  it  was 
acquiesced   in,  even  where  not  recommended  cordially,  by  the 
British  commanders   in  the  field.     The  real   impulse,  so  far  as 
an  outsider  can   judge,   behind    General   Maurice's   letter   and 
its     accusations,    accusations    never     in     the    slightest    degree 
answered    by    the  Government,   was    the  discontent   prevailing 
amongst    the   soldiers   at    the    front— the    men,    that    is,    who 
stemmed  the  German  onrush  and  gave  their  lives  by  the  thou- 
sand to  prevent  the  Prussians  from  overwhelming  us,  even  as. 
the   Italian  common   soldier   saved    Italy    from    the    Austrian 
deluge  after  the  surprise  and  rout  of  Caperello — over  the  tactics 
of  the  Government  at  the  previous  debate  on  the  Somme  fight- 
ing.    The  men — we  speak  with  knowledge — resented  the  way  in 
which  Mr.  George  and  his  Ministers  then  cast,  by  implication, 
the    blame   for   the   Somme  defeat,    for   it    was  a  defeat,   upon 
the  men  in  the  field  and  their  generals,  and  they  found  justifica- 
tion for   their    discontent    in    the    harsh-looking   treatment   of 
General  Gough,  and,  above  all,  the  speech  of  the  Prime  Minister 
himself.      As     this    journal,     in    dealing    with     that    speech, 
pointed     out     at     the     time,     the     Prime     Minister     skilfully 
avoided    all     reference    to    the    now    obvious    unpreparedness 
of    our    Army    before    the    surprise    assault    of    the    Germans 
was  launched,  and  devoted   his   eloquence  to  paint   a  glowing 
picture  of  the    rapidity  with   which   reinforcements   and    war 
material    were    rushed   to  the  front  af/er  the  catastrophe.      In 
taking  this  course  the  Ministry,  through  the    Prime   Minister, 
tacitly  confessed  to  the  previous  remissness  of  the  War  CaBinet, 
and   strove   in    doing  so   to    shunt    popular   indignation   away 
from  the  Government  to  the  soldier.     That  was  what  lay  behind 


Mav  i8,    igiS. 


Zbc  Jnveetors'  IRevtew. 


477 


•General  Maurice's  self-immolating  intervention,  and  that  it  did 
so  places  his  action  on  an  entirely  different  footing  from  the 
^ne  it  has  been  planted  on  by  said  Ministry  and  its  Harms- 
worth  Press. 

And  now  again  this  Harmsworth  Press  organisation  has 
twisted  things  around  so  as  to  make  it  appear  that  the  whole 
Maurice  incident  was  merely  one  more  illustration  of  British 
jealousy  of  the  French.  In  doing  this  we  say  deliberately  the 
Harmsworth  Press  in  its  greed  of  notoriety  and  power  was 
playing  traitor  to  the  nation  and  aiding  and  abetting  the 
enemy  in  his  belief  that,  by  holding  on,  he  is  going  to  win 
the  war.  The  whole  story  of  the  intimate  connection  between 
the  present  Government  and  this  degraded  Harmsworth  Press 
syndicate,  one  of  whose  star  performers  is  Mr.  Horatio 
Bottomley,  is  as  revolting  as  it  is  disloyal  to  the  best  interests 
of  kingdom  and  Empire. 

But  we  are  not  going  to  be  turned  aside  from  our  purpose, 
nor  are  we  going  to  betray  our  Belgian,  French,  Italian, 
Serbian,  and  other  Allies,  whatever  "stunt"  journali.sm  may 
do.  We  shall  not  even  forsake  Russia  because  of  Georgian 
political  intrigues  and  the  .strategy  of  self-seekers  on  the  make 
which  characterises  much  of  our  present  action  in  the  sphere 
of  politics.  The  men  that  are  fighting  are  true  and  to  be 
counted  on.  They  will  hold  on  and  fight  on  to  the  victorious 
end.  We  hope  also  that  in  spite  of  its  being  apparently 
steeped  in  mean  intrigues,  the  Government  of  Mr.  George  has 
at  last  learned  its  les.son  sufficiently  to  ensure  that  when  the 
impending  onslaught  which  all  are  waiting  for  does  come  it 
will  not  again  find  our  men  in  the  front  lines  without  sufficient 
reserves  available  behind  to  support  them  in  rebutting  the 
assault,  and  that  we  shall  be  at  all  points  fully  equipped  to 
continue  the  struggle  to  a  triumphant  close. 

Certainly  it  is  encouraging  to  see  the  manner  in  which  the 
united  Anglo-French  armies  are  handling  the  enemy  while  he 
is  gathering  himself  for  his  next  desperate  onslaught.  Day  and 
night,  in  good  weather  and  bad,  that  enemy  is  being  harassed 
and  impeded  in  his  preparations.  Continuously  our  air 
service  grows  in  volume  and  efficiency,  and  proves  its  mastery 
by  the  destruction  it  works  upon  enemy  lines  of  communication, 
enemy  stores,  railway  stations,  factories,  encampments,  food 
and  ammunition  dumps,  gun  emplacements,  and  all  the  rest  of 
the  numberless  preparations  for  wholesale   murder. 

So  unceasing  and  masterful  is  our  activity,  not  only  in  the 
air,  but  with  our  artillery  all  along  the  front,  that  we  some- 
times begin  to  hope  that  the  war  may  end  without  the  necessity 
being  imposed  upon  the  Allies  to  repel  this  much-advertised 
final  assault  at  all.  Evidently  the  enemy  is  embarrassed,  and,  it 
may  be,  is  getting  short  of  both  men  and  material,  else  why  is 
this  sudden  calling  upon  Austria  for  help?  There  is  much 
telegraphic  gossip  in  the  Press  about  the  brief  meeting  of  the 
two  Kaisers  in  distress,  the  mouthing  strutter,  William 
Hohenzollern,  and  the  whining,  needy  Charles  of  Lorraine — 
and  we  are  asked  to  believe  that  the  upstart  Brandenburg 
Kaiser  has  opened  his  mouth  and  swallowed  the  wobbling 
Habsburg.  It  may  be  so.  It  does  not  matter  much  whether  it 
be  so  or  not ;  for  one  tHing  is  sure,  William  Hohenzollern  can- 
not call  upon  the  subjects  of  Habsburg  Charles,  as  he  does  in 
Luthania,  to  as.sume  their  "  share"  of  Germany's  war  burdens, 
for  the  Austrian  Empire  itself  is  foundering,  and  must  pre- 
sently disappear,  beneath  the  weight  of  its  own  war  debts.  It 
may  be,  however,  that  Austrian  troops — not  particularly  enthu- 
siastic as  combatants — will  be  sent  to  form  spectacular  reserves 
in  assistance  to  the  German  hosts.  If  so,  we  may  be  sure  that 
the  utmost  skill  of  the  German  Press  directors  will  be  ex- 
pended in  attempts  to  overawe  or  intimidate  the  Allies  at  the 
prospect  of  overwhelming  attacks  .coming,  just  coming,  due  to- 
night or  to-morrow — perhaps.    • 

But  the  Germans  are  deceiving  themselves  if  they  nourish  any 
such  ideas.  They  apparently  are  expected  by  the  military 
ruffians  who  direct  their  slaughter  to  believe  that  the  American 
Army  is  as  "  contemptible "  as  William  the  strutter  and 
'  bawler  called  the  first  British  one  which  went  to  stand  by  its 
French  and  Belgian  comrades  at  the  outbreak  of  hostilities  in 
August,  1914.  But  President  Wilson's  War  Minister  reminded 
■us  early  this  week  that  already  500,000  American  troops  are  in 
f  ranee,  and  every  week  sees  their  numbers  multiplied.  They  are 
assembling  fast  on  the  spot,  fully  equipped,  ready  and  eager  to 
join  in  the  fray.  The  longer,  therefore,  the  Prussian  waits  the 
more  hopeless  will  his  dash    for  victory  get  to  appear. 

And  the  Prussians'  conquests  in  the  East,  let  us  once  again 
repeat,  will  count  for  nothing  unless  he  can  win  his  coveted 
triumph  in  the  West.  It  is  said  that  Austria  has  compacted 
with  her  Prussian  garrotter  to  resume  her  assaults  upon  the 
Italian  front,  and,  hateful  as  slaughter  n>usit  always  be,  we 
hope  this  may  be  true,  because  we  long  to  see  the  war  closed. 
The  more  the  pawns  of  the  tyrants  are  consumed,  the  sooner 
will  the  way  be  opened  to  a  satisfactory  peace.  And  farther 
East  the  Germans  continue  to  be  sacrificed  to  the  boundless 
ambition  of  their  Prussian  masters.  The  fir.st  supplies  of  food 
have  arrived  in  Berlin  from  the  Ukrainian  Republic  said 
William  the  braggart  at  Aix-Ia-Chapelle  the  other  day;  and 
at  what  a  cost  they  have  been  wrung  from  the  farmers  ! 

After  boasting  that  already  600,000  British  had  ibeen  put 
Aors  de  combat  on  the  Western  front  with  a  loss  of  1,600  guns, 
and  declaring  that  we  (the  British)  were  only  being  kept  alive  by 
■the  French  help,  William  went  on  to  boast  that  "we  (his  Ger- 
man serfs)  are  going  ahead  in  the  Crimea  also."  The  first 
trains  laden  with  foodstuffs  have  arrived  in  Berlin 
from  the  Ukraine,  thereby  "  improving  our  food 
■supply."  .  "  At  ~  Sebastopol  we  have  captured  a  big  and 
richly  laden  merchant  fleet.     There  we   shall  revive   traffic   on 


the  Black  Sea."  Why  not  on  the  Mediterranean  and  Atlantic 
also — eh,  William?  In  a  sense,  there  may  be  foundation  for 
these  boasts,  for  Russia  is  helpless.  But  tiicy  are  not  all  true. 
But  how  long  can  this  triumph  of  Teutonic  aggression  con- 
tinue if  the  armies  massed  against  us  are  defeated  in  the  West? 
All  the  war  will  be  won  when  we  win  there,  and  the  long  work 
to  be  done  after  we  have  succeeded  in  the  West,  the  work  of 
clearing  out  the  enemy  from  Asia  Minor,  from  Russia,  from 
the  Balkan  countries,  from  Rumania  and  elsewhere,  will  be, 
although  tedious,  easy  enough  when  Germany  has  no  more  men 
to  put  in  the  field,  when  hunger  consumes  what  remains  of  her 
martial  energies.  That  is  why  we  hope  there  will  be  no  slack- 
ness or  betrayal  this  time,  and  that  our  War  Office,  now 
directly  under  the  control  of  the  German-born  Viscount  Milner, 
will  not  fail  our  fighting  men  at  the  utmost  crisis  of  our  fate. 
It  might  even  contrive  to  give  a  little  judicious  help  to  those 
in  Russia  who  are  now  struggling  to  bring  back  order  there. 

In  answer  to  a  question  in  the  House,  Dr.  Macnamara,  Par- 
(iamentary  Secretary  to  the  Admiralty,  told  a  hopeful  tale 
about  our  progress  in  beating  down  the  submarine  piracy. 
Since  January  i  the  general  trend  of  submarine  warfare  has 
progressed  quite  satisfactorily,  he  told  the  House,  but  he 
excused  his  Department  from  giving  particulars.  The  Navy  is 
coming  into  its  own,  though,  witness  Ostend  after  Zeebrugge. 
These  feats  and  the  new  mine  field  in  the  North  Sea  make  us 
think  the  Ministry  was  right  when  it  changed  the  high  personnel 
at  the  Admiralty. 

Insurance    News. 

In  1917  the  Norwich  Union  Life  Insurance  Society,,  which, 
in  addition  to  being  the  largest  home  mutual  life  assurance 
office,  and  enjoys  the  distinction  of  transacting  the  largest 
volume  of  new  business  of  any  purely  ordinary  life  office  estab- 
lished within  the  United  Kingdom,  issued  6,831  policies  for  a 
nett  amount  of  ^3,556,313,  an  increase  of  ;ff39,933-  T^e  ""O*- 
tality  experience  was  within  expectation,  notwithstanding  war 
claims ;  but  for  the  latter  it  would  have  been  71  per  cent,  only 
of  expectation.  By  an  addition  of  ^^918,824  the  total  funds 
were  raised  to  ;^i4, 834,415,  a  record  all  the  more  satisfactory  at 
a  time  when  the  general  tendency  has  been  for  funds  to  shrink, 
or  at  all  events  not  to  expand  to  any  notable  extent.  The  nett 
rate  of  interest  earned  was  ^4  3s.  3d.  per  cent.,  an  increase 
of  IS.  6d.'per  cent,  as  compared  with  1916.  The  margin  of 
interest  on  the  life  funds  for  1917  was  thus  ^^i  13s.  3d.  per 
cent,  over  the  valuation  rate  of  2I  per  cent. 

In  the  year  to  November  15  last  the  Standard  Life  Assurance 
Company  issued  1,789  policies  for  /i, 027,604,  an  increase  of 
277  in  the  number,   but   a  decrease  of  ^^239, 567   in  the  amount 


New  Zealand. 


A  Wealthy  Country,  Splendid  Climate,  Fertile 
Soil,  Plenty  of  Water. 

An  Ideal  Country  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  population,  has  an 
annual  export  of  raw  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IRON,  TIMBER, 
GUM,  GOLD  AND  SILVER.  Total  yield  of  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  have  been  advanced 
by  Govemmentto  Farmers  and  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 
The  Railways,  3,000  miles.  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State. 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  oew 
country.  New  Zealand  offers  solid  advantages. 
Excellent  Steamship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Shipping  Company, 
Limited,  and  the  Federal  and  Shire  Lines. 


Full  information  is  supplied  f tee  by 

THE  HIGH  COMMISSIONER  FOR  NEW  ZEALAND. 

413-416,  STRAND,  W.C  2. 


478 


XTbe  Jnvestors'  TReview. 


Mav  i8,  1918. 


assured ;  the  nett  amount  of  premiums  on  the  new  business  was 
;^5o,54',  or  ;^i,858  less  than  for  the  previous  year.  With 
£gi()fioS  from  premiums,  and  ;^668,5g8  from  interest,  the 
revenue  for  the  year  was  ^1,588,206,  an  increase  of  ;^27,gi9. 
Owing  to  the  continuance  of  the  war  it  has  once  again  bieen 
impossible  to  obtain  full  accounts  from  Hungary,  and  no 
accounts  have  been  received  from  Belgium  since  January, 
1916.  The  directors  have  again  fixed  the  intermediate  bonus 
on  ordinary  participating  policies  of  five  years'  standing  which 
become  claims  during  the  current  year,  at  the  rate  of  £1  per 
cent.  The  dividend  to  shareholders  is  maintained  at  10  per 
cent. 

The  cost  of  the  principal  fires  in  Canada  and  the  United 
States  for  April  again  reached  a  large  total,  namely, 
/'4,o22,ooo,  or  only  about  ;^2o,ooo  less  than  the  figures  for 
April,  and  ;,f3oo,ooo  more  than  in  the  correspondin"  month  of 
last  year.  The  losses  last  month  represent  a  heavy  burden  for 
fire  underwriters,  for  nearly  all  the  important  properties  were 
insured. 

The  report  of  the  Eagle,  .Star,  and  British  Dominions  Insur- 
ance Company  for  1917  shows  that  marked  progress  was  made 
in  1917.  There  was  an  increase  of  ;,f424,973  to  ;^i,909,7g2 
in  the  nett  marine  premium  income,  and  the  balance  of  this 
account  was  raised  by  £<i3i,c)24  to  ;^i, 443,663.  In  the  fire 
and  general  account  nett  premiums  were  ^181,949  higher  at 
;^493)043.  •and  the  balance  of  the  account  was  raised  by  /79,866 
to  ^t'^S'.OoS-  The  life  premium  income  amounted  to  jf928,493, 
and  the  total  life  and  annuity  funds  now  stand  at  ;^io,o64,859. 
From  the  sum  of  ^^502,458,  being  the  cost  of  acquiring  the 
business  and  assets  of  various  companies,  £2^i,ygS,  or  one- 
half,  has  been  written  off.  In  addition,  ^^50,000  is  added  to 
general  reserve,  and  ;,;^i2,5oo  to  investment  reserve ;  the  amount 
of  th^  latter  fund  is  more  than  .sufficient  to  cover  any  depre- 
ciation on  the  securities  as  at  December  31  last.  The  divi- 
dend  is  made  up  to  12^  per  cent.,  tax  free,  for  the  year,  as 
compared  with  10  per  cent,  for  1916.  The  total  assets  amount 
to  ^"3-323.755- 


but  taxes  were  fully  $2,000,000  higher  at  $6,186,000,  which  com- 
pares with  $4,n6,ooo  for  1916  and  $3,270,000  for  1915.  The 
company  was  none  the  less  able  to  pay  7i  per  cent,  on  its  com- 
mon stcxk  for  1917,  compared  with  5^  per  cent,  for  1916  and  5 
per  cent,  for  1915.  The  surplus  left  was  $7,092,000  for  1915 
after  paying  the  5  per  cent,  dividend.  In  1916,  however,  the 
surplus  was  $11,455,000. 

Apparently  the  New  York,  New  Haven,  and  Hartford  Rail- 
road, which  was  in  an  almost  hopeless-looking  mess  some  years 
ago,  has  been  brought  round,  and  last  year  its  incfjme  of 
$85,785,000  was  the  largest  in  the  compatiy's  history,  and 
$5,353,000  more  than  for  the  previous  year.  Expenses,  how- 
ever, lose  $7,598,000  to  .$61,970,000,  and  the  nett  revenue  by 
working  the  line  was  only  $20,472,000,  compared  with 
$23,049,000.  Altogether,  including  income  from  various  secu- 
rities held,  the  entire  nett  revenue  was  $27,742,000,  as  against 
$30,347,000,  and  after  meeting  the  funded  debt  charges,  rents, 
(ic,  there  was  just  $2,404,000  left,  the  smallest  surplus  for  the 
past  three  years. 

THE  YOKOHAMA  SPECIE 
BANK,  LIMITED. 

Head  Office :  Yokohama. 
London  Office :  7,  Bishopsgate.  E.C.  2. 


American  Business  Notes. 

Since  the  war  began  there  has  been  a  marked  decline  in  the 
European  holdings  of  United  States  Steel  Corporation  shares. 
At  tlie  end  of  1914,  for  example,  this  country  held  710,621 
common  shares  in  the  company,  and  at  the  end'  of  March  last 
this  holding  is  returned  at  only  173,538  shares.  That,  however, 
was  464  shares  more  than  at  December  31,  1917.  Dutch  holdings 
fell  less.  They  were  314,645  shares  at  the  end  of  1914,  and  fell 
to  229,185  by  the  end  of  1917,  that  figure  remaining  unchanged 
from  June  30  last  year.  In  fact,  the  Dutch  have  sold  very 
few  shares  since  i9r4.  France  held  64,537  shares  at  the  end 
of  1914  and  29,170  shares  at  March  31  last.  No  other  European 
country  possessed  many  of  these  shares  except  Belgium,  which 
is  credited  with  still  holding  2,625,  and  at  the  end  of  1914  the 
Belgian  holding  was  only  3,509  shares.  Scotland  held  4,208 
shares  at  the  end  of  1914  and  held  740  shares  as  recently  as 
June  30  last.  Of  preference  shares,  France  still  holds  26,048, 
which  IS  285  more  than  at  The  end  of  the  previous  year.  At  the 
end  of  1914,  however,  the  French  possessed  36,749  of  these 
preference  shares.  Our  possession  in  these  preference  shares 
has  fallen  from  174,906  shares  at  the  end  of  1914  to  39,424  shares 
at  the  end  of  March  last,  and  the  latest  figure  may  be  said 
to  represent  our  interest  in  the  United  States  Steel  Corporation 
for  the-  past  15  months.  Holland  holds  now  25,274  preference 
shares,  or  practically  the  same  .is  for  the  last' two  years,  and 
at  December  31,  1914,  the  Dutch  investment  therein  was  only 
29,000  shares.  The  Scotch  proportion  has  fallen  from  11,747 
shares  to  234,  whereas  the  Swiss  has  risen  from  2,617  at  the  end 
of  1914  to  2,853  now,  but  in  the  interval  the  number  rose  slightly 
beyond  3,000.  In  Austro-Hungary  2,086  of  these  preference 
shares  were  held  at  the  end  of  1914,  and  the  number  rose  by 
1,600  to  3,683  by  December,  rqi6,  but  it  is  now  down  to  683, 
and  Germany  is  credited  with  876  shares  now  against  3,252 
in  December,  1914.  In  Italy  331  more  of  these  preference  shares 
are  held  now  than  at  the  earliest  date,  2,009  being  credited  to 
that  country  at  March  31  this  year  as  compared  with  1,678  at 
the  end  of  1914.  Both  of  the  ordinary  and  preference  shares  a 
few  are  held  in  many  other  countries,  but  beyond  those  named 
in  Europe  there  are  no  figures  large  enough  to  be  worth  putting 
on   record  here. 

The  Reading  "holding"  company  showed  a  nett  revenue  of 
$15,696,000  for  last  year,  and  a  surplus  of  $9,780,000  after 
meeting  taxes  and  all  interest  charges,  and  the  nett  income 
for  the  i8  months  ended  December  ^i  last  was  sufficient,  after 
deducting  the  dividends  on  the  first  and  second  preference  and 
on  the  common  stock,  to  leave  a  .surplus  of  $2,702,000. 

As  for  the  Philadelphia  and  Readine  Railway,  the  orincipal 
aMet  of  the  "  holding "  comoany,  its  revenue  was  nearly 
$6,500,000  up  last  year  at  $66,831,000,  and  its  nett  income,  in- 
cluding $851,000  from  outside  sources,  was  $18,942,000  This 
compares  with  $24,697,000  for  19.6.  and  after  meeting  all 
charges  including  interest  and  rents,  together  with  $1,786,000 
invested  in  physical  property,  there  was  a  surplus  of  $4,715,000, 
which  compares  with  $13,257,000,   the  surplus  of  the  previous 

The  Philadelphia  and  Reading  Coal  and  Iron  Company  also 
showed  a  surplus  of  $5,437,000,  after  meeting  its  fixed  charges 
i>nr  the  past  year,  and  the  surplus  was  nearly  $3,000,000  larger 
than  that  for  1916.  j     o'       >  b 

In  1017  the  Illinois  Central  Railroad  earned  $87,145,000,  at  a 
cost  of  $62,340,000  of  working  expenses.  Its  nett  income  from 
working  was,  therefore,  about  $4,000,000  higher  at  $24,805,000, 


Capital  Subscribed 
Capital  Paid  Up  - 
Reserve  Fund 


Yen  48,000,000 
Yen  42,000,000 
Yen  23,100,000 


The  Seventy-Sixth  Half- Yearly  General  Meeting  of  Share- 
holders was  held  at  the  Head  Office,  YcAohama,  on  the  9th 
March,  1918,  when  the  Directors  submitted  the  following  State- 
ment of  the  Liabilities  and  Assets  of  the  Bank,  and  the  Profit 
and  Loss  Account  for  the  Half-Year  ended  31st  December,  1917. 
which  was  duly  approved. 

BALANCE  SHEET. 

LIABILITIES.  Y. 

Capital  (paid  up)  36.000,000. Oa 

Reserve  Fund 22,100.000.00 

Reserve  for  Doubtful  Debts 2,828,504.21 

Notes  in  Circulation 20,023,208.95 

Deposits  (Current,  Fixed,  &c.)  ...527,004,429.91 

Bills  Payable,   Bills   Re-discounted,    Acceptances, 

and  other  sums  due  by  the  Bank 368,909.057.45 

Dividends  Unclaimed ...  10,304.77 

Balance  of  Profit  and  Loss  brought  forward  from 

last  Account 2,226.757.81 

Net  Profit  for  the  past  Half-year      3.653.690.92 


Yen  982,755,954.02 


ASSETS. 


Cash  Account- 
In  Hand 
At  Bankers 


Y. 


...39.951.479.39 
133.320,613.13 


Investments  in  Public  Securities       

Bills  discounted.  Loans,  Advances,  &c 

Bills  recei\  able  and  other  sums  due  to  the  Bank. 

Bullion  and  Foreign  Money 

Bank's  Premises,  Properties,  Furniture,  &c. 


173.236,092.52 

25.780,511.68 

225.531,618.83 

551,767,497.66 

3,476,836.33 

2,963,397.00 


Yen  982.755,954.02 


PROFIT  AND  LOSS  ACCOUNT. 


To  Interests,  Taxes,  Current  Expenses,  Rebate 
on  Bills  Curreni,  Bad  and  Doubtful  Debts, 
Bonus  for  Officers  and  Clerks,  &c.  ..." 

To  Reserve  Fund        

To  Dividend — 

I  yen  6  00  per  Old  Share  for  240,000  Shares) 
1  yen  3  00  per  New  Share  ,,         ,,  ,,        I 

To  Balance  carried  forward  to  next  Account 


46,084,294.89' 
1,000,000.00 

2,160,000.00 
2,720,448.73 

Yen  51.964.743.62 


By  Balance  brought  forward  30th  June,  1917 
By   Amount   of  Gross  Profits  for  the   Half-year 
ending  31st  December,  1917  


y. 

2,226,757.81 
49,737.985  81 


Yen  51,964,743.62 


May  i8,   1918. 


'^be  investors'  IReview. 


479 


''!;i^"''  . '"''^"''"^     '"''^    EXPENDITURE.  MINING    RETURNS    FOR    APRIL. 


The  following  are   the  receipts  into  and   issues  out     of    the 
Exchequer  between  April  1,  1918,  and  May  11,  1918:— 


fiiilances   in    Exchequer   on 

April  I— Bank  of  Engbnd  . 

Banli  of  Ireland    . , 


REVENtH. 

Customs  

Excise  '.'.'.'.'.'. 

Estate,  &c.,  Duties ..'.'.'.. 

Stamps 

Land  Tax !.!!Y 

House  Duty    !!!!!) 

Property  and  Income  Tail  and 

Super  Tax    

Excess  Profits  Dulies,  &c..!.. 
i^and  Value  Duties  ... 

Post  Office  '.'.'.'.'.'. 

Crown  Lands .'.!!!!! 

Receipts    from    Sundry 

Loans,  &c 

Miscellaneous 


Estimate       I  ''"°'*'  Receipts 
for  the         L     '"'0  "■? 
Year  jc-xchequerfrom 

April  I,  iqi8,  to 
(    May  II,  1918. 


1918-1919. 


Total  Receipts 

into  the 

Exchequer  from 

April  I,  1917,  to 

May  12,  1917. 


19,361,578 
1, 663,452 


31,030,030 


Revenue 
Total 


Other  Receipts. 

Repayment  of  Advances  for  Bullion   

For  Treasury  Bills  (tor  supply)    

For  5  per  Cent.  Exchequer  Bonds,  1923'..!!!." 

For  3  per  Cent.  Exchequer  lionds,  1930    

For  War  Savings  Certificates 

For  other  Debt  (War  Loan  Acts,  1914-1917) 
For4  per  Cent.  War  Loan,  1929-1942,  and  5  per 

Cent.  War  Loan,  1929-1047    

For  National  War  Bonds '.'..■.■ 

Temporary  Advances— Ways  and  Means... 


'^°'^' 858,363,732 


9,253,oco 

4,i27,oco 

3,390,000 

948.000 

235.000 


19,366.000 
30,337.000 

60,000 
3,200,000 

50,000 

895 
984,308 


71,851,203 


92,881,233 


55o,oco 
493.465.oco 

799,500 
11,700.000 
66,389,999 


♦92,096  000 
100,482,000 


£ 

35,209,947 
1,225,912 


26,435,859 


8,170,000 

3.815  000 

3,374,000 

707,000 

250,000 


16,574,000 

20,598,000 

91,000 

3,200,000 

50,000 

500 
574,336 


57,403.836 


83,839,635 

290,000 
218,455,000 
22,585,000 

4,9CO,000 
55,785,329 

80,250,000 

83,055,000 


549, "59.924 


'Elcluding  sales  through  joint  stock  and  private  banks  not  yet  Drought  to  account. 


Expenditure 
AND  other  Issues. 


Estimate  for 
the  Year 
1918-19. 


I  Total  Issues 
lout  of  the  Ex- 
ichequer  tomeet 
jpayments  from 
1  April  I,  1918,  to 
i    May  11,  :gi8. 


1'otal  Issues 
out  of   the   Ex- 
chequer to  meet 
payments   from 
April  I,  1917,  to 

May  12, 1917, 


ExPENDtTURE. 

Permanent  Charge  of  Debt  . . 
Interest,  &c.,  on  War  Debt  . . 
Payments  to   Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    


Expenditure 


Other  Issues. 
For  Advances  for  Bullion  

For   Advances    for    Interest    on    Exchequer 

Bonds     under    the     Capital     Expenditure 

(Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  OfSce  (London)  Railway  Act,  1913 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supplv 

For  War  Loan^,  Eichequer  Bonds,  &c., under 

Section  ^4  of  Finance  Act,  1917 

For  War  Expenditure  Certificates  under  War 

Loan  Act,  lgi6    

For  ottier  Debt  unf-er  the  War  Loan  Acts' 

1914  to  1917 

For  Depreciation   Fund  under    the    Finance 

Act.  1917  

Old    Sinkin;;    Fund,     19.0-11,    issued    unt'er 

the  Finance  Act,  igii.  Section  16  (1)  (b)  .. 
Temporary  Advances  repaid— Ways  and  Means 


I      1918.     \      1917. 
May  II,  I   May  12 
Balances  in  Exchequer—  \        £        \       £ 

Bank  of  England 12,684,830!  21,898,000 

Bank  of  Ireland !    1,620,009]    1,327,019 


Total 858,363,732 


£ 
2,852,837 
18,687,599 

200,380 

242,079 
299.212,6.0 


321,195.495 


700,000 

84.909 

12,000 
lc6,30o 

+493,398,000 

5,753,231 

114,100 

7,114,836 

2,C6o.022 

20, COO 
13,000  000 


844,058,893 


14,304,839 


£ 
3,409,551 
6,56^,149 

200,380 

240,306 
282,7.4,400 


293,134.786 


460,000 


84,909 
20,000 

175,400 
138,715,000 

24,810 


93,320,000 


525.934,905 


23,225,019 


549,159.924 


Memo.— Treasury  Bills  outstanding  on  May  11, 1918 •£972,850,000 

'Includes  £201,000,  the  proc  eds  of  which  were  not  carried  to  the  Kxcbequer 

within  the    period   of   the  account,  besides   a   part   (not  yet  asctirtained  and 

brought  to  accouni)  of  the  Bills  tendered  as  subscriptions  to  National  War  tic  n.is, 
t  Includes  part  payment  of  Bills  and  Certificates  teaiered  as  subscriptions 

to  National  War  Bonds 


Some  faint  idea  of  what  we  have  done  to  help  Russia  since 
the  war  began  may  be  gathered  from  the  return  of  our  ship- 
ments to  Archangel.  During  the  years  1915,  1916,  and  1917, 
cargoes  consisting  of  munitions  and  other  warlike  supplies, 
every  kind  of  gun  required  by  the  armies,  together  with  vast 
quantities  of  clothing,  boots  and  food,  were  furnished  to  Russia 
by  us.  In  1915,  270  vessels  sailed  to  Archangel  with  540,000 
tons  of  general  cargo.  In  1916  402  vessels,  of  which  182  were 
British,  the  others  being  American,  French,  and  Norwegian, 
carried  1,600,000  tons  of  cargo,  and  in  1917,  notwithstanding  the 
heavy  demands  of  tonnage  for  Italy,  Salonika,  Egypt,  Mesopo- 
tamia, and  East  Africa,  207  vessels,  of  which  102  were  British, 
carried  cargoes  weighing  r,2cio,cxx>  tons  all  to  Archangel. 
Russia's  coal  requirements  were  mostly  met  by  Great  Britain. 
We  sent  in  1915  680,000  tons  to  North  Russia,  in  i<)i5  over 
1,000,000  tons,  and  in  1917  i,o5o,o<x)  tons.  Has  any  of  this 
material  been  got  back? 


Ashatiti.— 7,192  tons;  8,853  oz%.  ;  value,  ;Cs7,546  (£37,666). 

Aurora  West.— 14,050  tons;  profit,  ^f  1,260  (Mar.,  ^^536). 

Balaghat.— 6,450  tons;  1,619  ozs.  fine  gold  (Mar.,  1,599  <«"■)• 

Bantjes.— 19,170  tons;  profit,  ;,fi6  (Mar.,  less,  ^521). 

Brakpan.— 54,400  tons;  profit,  ;ff35,o68  (Mar.,  ;f37,02i). 

Bullfinch.— 4,741   tons  ;  profit,  £7^3   (March,  ;f642). 

Champion  Reef.— 29,209  tons  ;  8,172  ozs.  gold  (Mar.^  8,814  O")- 

City  and  Sub.— 22,722  tons;  profit,  jCH.gig  (Mar.,   ,£7,757). 

City    Deep. — 60,000  tons;   profit,  £^(y,.\^$  (Mar.,  ,^^45,023). 

Cons.  Langlaagte. — 47,000  tons;  profit,  ,£15,057  (Max., 
;£ '4.094)  • 

Cons.  Main  Reef.— 55,470  tons;  profit,  £'2,373  (Mar., 
;£i2.6is)- 

(  rown. — 172,000  tons;  profit,  ,£45,656  (Mar.,  _£37,448). 

Durban  Rood.  Deep. — 26,600  tons;  profit,  ,£5,152  (Mar,, 
/4.,o65). 

East  Rand  Prop.  — 118,500  tons;  profit,  £6,591  (Mar.,  ;£6,o84). 

Ferreira   Deep. — 44,700  tons;  profit,   ;£20,f>67   (Mar.,  ;£22,i9o). 

Gaifca. — 3,049  tons;   profit,  ^1,110  (Mar.,  ;£!,io2). 

Geduld. — 43,000    tons;    profit,   ;£i9,379   (Mar.,   £19,233). 

C.eldenhuis  Deep. — 52,500  tons;   profit,   £2,811   (Mar.,   £714). 

Ginsberg.— 13.500  tons;  ^£11,370;  lo-ss,  £953  (Mar.,  loss,  Xs^d). 

(jlencairn. — 18,100  tons;  profit,  ;£498  (Mar.,  £406). 

Globe   and    Phoenix. — 5,814    tons;     profit,      £13,389; 


:i8,5o6). 


Lydenburg. — 3,620     tons 
Horse     Shoe. — 12,666 


profit,     £1,790 
tons ;     profit,    ^^8,837 
profit,     ^^65,371 


Mar,, 
(Mar., 
(Mar., 
(Mar., 


Glynn's 

.£1.447). 
Golden 

£9."34)- 

Gov.     Areas     Mod. — 110,000     tons; 
^60,410). 

Ivanhoe  G.  Corp. — 16,747  tons;  profit,  £5,400  (Mar.,  ;£5,4oo). 

Jubitil. — 1,300  tons;  423  ozs.  fine  gold  (Mar.,  502  ozs.). 

Jupiter. — 20,400  tons;  profit,  ;f2,296  (Mar.,  ;£584). 

kalgurli. — 5,214  tons;    profit,   £516   (Mar.,   ^520). 

Knight  Central.— 24,500  tons;  profit,  /300  (Mar.,  loss,  ;£955)- 

Knight's  Deep.— 98,100   tons;  profit,   ^£322   (Mar.,  /i,77S). 

Langlaagte  Est.ite. -43,45°  tons  ;  profit,  £9,584  (Mar.,  £5.309)- 

Lonely  Reef.  -5,130  tons  ;   profit,   £g,(i66  (Mar.,  £8,s<)2). 

Luifkaards  Vlei. — 20,060  tons;  loss,  £778  (Mar.,  loss,  £^2,345). 

Meyer    and    Charlton. — 10,950    tons;    profit,    ;£20,050    (Mar., 

;i'22,5Il). 

Modder  "  B."— 45,000  tons;   profit,  £54,562  (Mar.,  ^48,224). 
Modder  Deep.— 42,700  tons;,  profit,  ;£5o,885  (Mar.,  ;f49,i76). 
Mysore. — 71,983  tons;  15,346  ozs.  fine  gold  (Mar.,  15,471  ozs.). 
New  Goch. — 16,000  tons;  profit,  /'291   (Mar.,  profit,  £s'^)- 
New  Heriot. — 12,200  tons;  profit,  £1,014  (Mar.,  loss,  j^6,o86). 
New  Kleinfontein. — 64,860  tons;  profit,  if 5,480  (Mar,, /5,32i). 
New   Modder. — 59,500;   profit,  £'71,630   (Mar.,   £64,21)7), 
New  Primrose. — 17,300  tons;   profit,  £486  (Mar.,   ,£68). 
New  Unified. — 12,750  tons;  profit,  ,£2,646  (Mar.,  ;f  1,247). 
N.  Anantapur. — 4,000  tons;   1,133  ozs.    gold   (Mar.,   1,136). 
Nourse.— 42,700  tons;  ^47,219;  profit,  £3,630  (Mar.,  £2,050). 
Nundydroog. — 21,118  tons;  6,513  ozs.   gold  (Mar.,  6,482  ozs.). 
Ooregum. — 30,005  tons;  7,398  ozs,  fine  gold  (Mar.,  7,467  ozs.). 
Pahang  Cons. — 17,500  tons;  output,   150  tons. 
Princess     Estate. — 19,400     tons;     loss,     £^1,605     (Mar.,     loss, 

;^I,44o)- 

Randfontein  Cent. — 154,100  tons;   profit,  ,£10,335  (Mar.,   loss, 

.£9.841). 

Robinson   Deep. — 45,000   tons;   profit,   ;£7,,583    (Mar.,   ,£9,352). 

Roodepoort  U. — 23,875  tons;  loss,  ,£2,503  (Mar.,  loss,  ;£i,o6i). 

Shamva. — 54,034  tons;  profit,  £11,465  (Mar.,  £11,078). 

Simmer  &  Jack. — 54,700  tons;  profit.  /■i2,456  (Mar.,  ^^15,729). 

.Sons  of  Gwalia. — 11,989  tons;   profit,   £1,072  (Mar.,  ^^2,067). 

Simmer  Deep. — 43,200  tons;  profit,  £873  (Mar.,  kjss,  £1,617). 

Springs. — 36,920   tons;  profit,   ^^36,097   (Mar.,  £^3,613). 

Sub   Nigel,— 9,800;   profit,   ^8,304   (Mar,,   /8,56i). 

Sudan, — 1,152  ozs.;  value,  ;£4,o94  (Mar.,  ;/^4,o88). 

Transvaal  Gold, — 14,290  tons;  profit,  £3,415  (Mar.,  ;£5,94o). 

Van  Ryn. — 35,500  tons;   profit,  ,£6,693   (Mar.,  ;f8,o27). 

Van  Ryn  Deep. — 40,i40ttons;  profit,  ;£5o,ii3  (Mar.,  £54.071). 

Village  Deep. — 52,300  tons;   profit,   ^^4,035    (Mar.,   £^6,273). 

Wanderer. — 10,830  tons;  profit,  ,£192  (Mar.,   loss,  £'1,863). 

West    Rand   Cons.— 35,250   tons;   profit,   ;£i,oii    (Mar.,    loss, 
.£2.676). 

Witwatersrand. — 39,150  tons;  profit,  ;£ii,o49  (Mar.,  ;^ii,a58). 

Wit.   Deep. — 34,700  Tons;  profit,  £159  (Mar.,  loss,  £912). 

Wolhuter. — 32,500  tons;  profit,  ;f6,566  (Mar.,   £5,184). 


Having  no  cotton  left,  and  being  in  no  position  to  obtain 
any,  thanks  to  the  control  of  the  Allied  fleets  over  the  sea, 
German  manufacturers  have  been  hunting  about  for  a  cotton 
substitute.  It  is  "  substitutes "  everywhere  in  Germany 
nowadays — except  in  th^  man  butchery  trade.  According  to 
recent  information  it  is  estimated  that  nearly  50,000  acres  are 
to  be  devoted  this  year  in  Germany  to  the  cultivation  of  nettles, 
and  doubless  the  nettle  leaves  when  young  are  excellent  food,  as 
good  as  spinach  we  are  assured  ;  but  it  is  not  the  food  manu- 
ficturers  are  after,  it  is  fibre,  and  out  of  this  50,000  acres  it 
is  calculated  that  about  18.000  tons  of  the  fibre  will  be  produced. 
Nettle  fibre  is  now  being  "  spun  into  yarn  of  very  high  counts, 
we  are  told,  and  a  company  has  been  formed  to  push  forward 
the  industry  with  a  capital  of  £'250,000,  expandable  at  need. 


480 


(Tbe  Jnveetots'  IRevtew, 


Mav  18,   igib. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in    1917  over 

£9,700,000 
or  over  £31,000  for  each  Working  Day. 

SCOTTISH  UNION  &  NATIONAL 

INSURANCE  COHPtNV. 

ESTABLISHED    1824. 

ASSETS    exceed    £11,000,000. 

FIRE  (INCLUDING  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  GLASS  BREAKAGE,  TRANSIT  OF 
SECURITIES,  FIDELITY,  PROPERTY  OWNERS'  LIABILITIES,  HORSE  DRIVING 
ACCIDENTS,  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh:  35,  St.  Andrew  Square. 
London :  5,  Walbrook,  E.G.  4,  and  4,  St.  James'  St.,  S.W.  1. 

P^CS*  tf  ■_■  n^rr  *V  'V^*  assurance  company 
K3U  ^Jla  JEW   JL   J^k  limited. 

Established  1782. 

Head  Office:  PH(£NIX  HOUSE,  KING  WILLIAM  STREET,  LONDON,  E.a  4. 

Total  Assets  Exceed  £X7,000,000. 

Claims  Paid  Exceed  £100,000,000. 

Chairman— Rt.  Hon.  LORD  GEORGE  HAMILTON,  P.C.,  G.C.S.I 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

Loss  of  Profits  following  Fire,  Workmen's  Compensation,  Fidelity  Guarantee, 
Burglary,  Trustee  and  Executor,  &c. 
Prospectuses  and  Proposal  Forms  may  be  obtained  on  application  to  any  of 
the  Branch  Oifices  or  Ageiicies,  or  to  the  Head  Offices 

General  Manager       -       SIR  GERALD  H.  RYAN. 


Money    and   Credit    Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5 J  percent. on 
Thursday,  April  5,  1917.) 


Norfolk  House,  Friday  Evening. 

By  kjoking  with  a  microscope  one  may  discover  some  traces 
of  movement  in  the  Money  market,  but  it  rarely  goes  beyond 
call  loans.  Sometimes  these  have  been  negotiated  at  2j4  f>er 
cent.,  but  the  general  rate  is  3  per  cent.,  and  3%  per  cent, 
remains  the  rate  for  seven-day  advances.  Sixty-day  Bank  bills 
do  move  enough  to  give  a  certain  interest  in  the  business,  but 
the  quotation  of  35^  per  cent,  remains  unaltered  for  all  usances 
up  to  four  months,  and  even  four  months'  bills  are  frequently 
bought  at  3J4.  June  bills  have  changed  hands  at  and  are  in 
demand  at  3^.  The  market,  take  it  all  round,  is  about  as 
uninteresting  as  it  could  be. 

A  week  ago  the  Bank  return  showed  a  large  draft  up>on  other 
deposits,  with  corresponding  movements  in  "other"  securities 
and  public  deposits.  This  week  other  deposits  have  risen 
;f5,69o,ooo  and  public  deposits  have  again  swollen  by 
;f3,884,ooo.  The  source  of  this  increase  in  liabilities  has  been 
;f 8,1 12,000  added  to  the  "other  "  and  ;f  1,445,000  to  the  Govern- 
ment securities.  The  reserve  is  up  ;f49,ooo,  thanks  to  a  return 
of  coin  and  bullion  larger  than  the  expansion  in  the  note 
circulation.  That  is  to  say,  coin  and  bullion  is  up  ^^373,000 
and  notes  down  ^^294,000.  The  proportion  of  reserve  to 
liabilities  has  fallen  to  17%  per  cent.,  and  is  3%  per  cent,  below 
the  figure  of  a  year  ago,  but  that  is  not  so  much  because  the 
reserve  is  smaller  as  because  the  liabilities  on  deposits  are 
^^27,000,000  higher. 

It  is  .understood  that  the  committee  ap^inted  to  consider  the 
question  of  bank  amalgamation  will  recommend  the  establish- 
ment of  a  tribunal,  the  sanction  of  which  will  have  to  be  ob- 
tained before  any  fresh   schemes   are  carried  through. 

A  fresh  statement  comes  from  America  regarding  the  position 
of  United  States  advances  to  the  Allies  on  this  side.  According 
to  this  the  total  of  these  advances  now  amount  to  ;^i, 153,000,000, 
of  which  Great  Britain  has  received  ;^50f),ooo.ooo.  This  cannot 
be  accurate,  although  the  figures  are  given  by  the  Washington 
correspondent  of  the -Times  on  the  authority  of  Mr.  McAdoo, 
the  Secretary  to  the  Treasury.     At   any  rate,   a  week  ago  the 


total  advances  to  this  country  alone  was  set  down,  presumedly 
officially,  at  ;f  759,000,000,  and  since  then  a  further  ;f  40,000,000  is, 
according  to  Mr.  McAdoo,  credited  to  Great  Britain  out  of  a 
total  of  ;f8o,ooo,ooo  advanced  to  the  Allies.  Of  the  balance, 
France  gets  /■2o,ooo,ooo. 

A  new  and  novel  type  of  National  Defence  Bonds  will  be 
oflered  for  sale  in  France  as  from  the  end  of  this  month. 
These  bonds  will  be  issued  with  a  currency  of  one  month,  and 
v.'ill  bear  interest  for  this  period  of  30  centimes  per  cent.,  pay- 
able in  advance,  so  that  if  the  bonds  are  redeemed  at  maturity 
the  yield  will  be  3.6  per  cent.  But  holders  will  have  the  option 
of  renewing  the  bonds  for  a  further  period  of  one  or  two 
months,  and  in  order  to  induce  them  to  renew  a  higher  rate  of 
interest  is  oflered  for  the  extended  period — namely,  35  centimes 
per  cent,  per  month.  Thus,  if  the  bonds  are  renewed  for  one 
month,  the  yield  will  be  3.9  per  cent.,  and  if  for  two  months 
4  per  cent.  The  attractiveness  of  these  terms  lies  in  the  fact 
that  the  4  per  cent,  interest  obtainable  on  the  existing  bonds, 
which  have  a  three  month.s'  currencj;,  may  be  obtained  by  sub- 
scribing to  the  new  bonds,  without  the  holder  being  compelled 
in  any  case  to  hold  his  bonds  for  three  months  from  the  date 
of  subscription. 

The  State  of  San  Pauio  has  arranged  to  renew  for  a  further 
period  of  two  years  its  5  per  cent.  "  two-year  "  Treasury  notes, 
sold  here  in  1914.  'These  notes  oiiginally  amounted  to 
^4,200,000,  and  first  matured  on  Januarj'  i,  1916,  but  as  funds 
for  the  repayment  of  only  30  per  cent,  were  then  available,  the 
remaining  70  per  cent,  was  renewed  until  January  i  last.  Ap- 
parently only  about  ^^650,000  was  then  repaid,  for  ;^2, 205,000 
has  been   renewed  until  January  i,  1920. 

The  principal  neutral  exchanges  have  moved  sharply  against 
this  country  this  week.  Amsterdam  has  fallen  27  points  to 
9.47 J  fl.,  and  the  pound  sterling  is  now  equivalent  to  only 
19.30  Swiss  francs.  Christiania  at  15.10  kr.,  Copenhagen  at 
15.15  kr..  and  Stockholm  at  13. 92}  kr.  are  from  2J  to  4  points 
lower,  while  pesetas  are  also  dearer  at  16.95  to  the  pound.  All 
(he  South  American  currencies  are  dearer,  including  Buenos 
Aires  at  523d.,  Rio  at  i3id.,  and  Valparaiso  at  i6^d.  Montreal 
has   unexpectedly  risen   quite   sharply,   and   is   now    quoted   at 

The  interesting  announcement  is  made  that  the  Sumitomo 
Rank  of  Osaka  will  open  a  London  branch  at  87,  Gracechurch 
Street,  in  the  course  of  next  month.  When  this  takes  place 
Japan  will  be  represented  here  by  three  of  its  leading  banks. 
The  Sumitomo  Bank  was  founded  by  the  influential  family  of 
the  same  name,  whose  present  head  is  Baron  K.  Sumitomo,  and 
whose  properties  are  among  the  largest  and  richest  in  the 
country.  The  bank  has  22  branches,  with  a  paid-up  capital 
of  26,000,000   yen,  and  deposits  aggregating   188,000,000  yen. 

The  Yokohama  Specie  Bank,  Ltd.,  London,  announce  that 
^^135,700  4>^  per  cent,  sterling  bonds  of  the  ist  Series  and 
/i24,86o  4K  per  cent,  sterling  bonds  of  the  2nd  Series  of  the 
sterling  loans  of  1905  have  been  purchased  on  behalf  of  the 
Imperial  Japanese  Government  for  the  purpose  of  cancellation. 
The  good  work  of  redemption  goes  on  steadily. 

SiLVEE. 

There  is  nothing  at  all  to  say  about  silver  this  week.  The 
market  has  become  fixed  at  ^Sjid.  per  oz.,  and  will  vary  only  as 
charges  incidental  to  transmission   vary. 

Applications  for  the  Rs.  60,00,000  Indian  Council  drafts 
offered  oh  Wednesday  amounted  to  Rs.  2,19,55,000.  Of  these 
Rs.  59,59,000  were  allotted  in  deferred  transfers,  and 
Rs.  41,000  in  immediate  transfers.  Tenders  for  bills  and 
deferred  transfers  at  is.  5  29-32d.,  and  for  immediate  transfers 
at  IS.  6d.,  received  about  27  per  cent. 


Mr.  John  Ferguson,  London  manager  of  the  National  Bank  of 
Scotland,  Ltd.,  has  joined  the  London  board  of  the  Scottish 
Union  and  National  Insurance  Co. 

Sir  Albert  Stanley,  President  of  the  Board  of  Trade,  made 
cut  a  good  case  for  the  higher  season  ticket  fares  suddenly 
sprung  upon  the  public  by  the  railway  companies,  and  we  are 
sorry  to  say  that  we  feel  bound  to  agree  with  him.  It  would 
have  been  much  more  pleasant  to  take  the  side  of  the  season 
ticket  holder  and  join  him  in  abusing  the  authorities,  as  he  is 
now  busy  doing.  Facts,  however,  forbid  us  to  adopt  any  such 
attitude.  No  doubt  the  railway  companies,  when  they  began 
the  development  of  their  suburban  traflfic,  did  their  utmost  to 
attract  residents  to  the  vacant  lands  along  their  lines  by  cheap 
fares,  and  season  tickets  were  sometimes  granted  free  to  new 
settlers  for  a  certain  period,  while  always  the  "season"  fares 
were  low,  so  low  sometimes  that,  as  Sir  Albert  said,  it  was 
occasionally  possible  to  save  money  by  taking  a  season  ticket, 
although  using  it  only  once  a  week.  That  ought  never  to  have 
been,  and  the  travelling  public,  particularly  suburban  residents, 
should  make  up  their  minds  that  this  is  probably  only  a  first 
step  in  raising  the  cost  of  travelling  to  everybody  except, 
perhaps,  railway  directors.  The  suburban  residents  will  have  to 
turn  attention  to  their  landlords  and  agitate  for  lower  rents 
or  for  a  redistribution  of  the  burden  of  rates,  lest  between  taxes, 
cost  of  travelling,  rents,  and  rates  they  get  squeezed  out 
altogether.  Even  now,  however,  the  cost  of  a  railway  journey 
to  and  fro  five  days  a  week  will  be  considerably  less  than  }4d. 
per  mile,  Sir  Albert  Stanley  said,  compared  with  the  ij^'^-  P^'' 
mile  which  is  now  charged  on  the  ordinary  single  journey  third- 
class  ticket. 


May  !8r  1918. 


^be  Jnvestors'  IRevtcw. 


481 


BANK    OF    ENGLAND 

.SVN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict. 
Week  ending  on  Wednesda>,  May  15, 


,  cap.  32,  for  the 
1918. 


^otes  Issued 


ISSUE     DEPARTMENT. 
£ 


79,574,335 


Government  Debt .. 
Other  Securities    .. 
Gold  Coin  and  Bullion 
Silver  Bullion 


£79,574.335  ' 


BANKING    DEPARTMENT. 


1*roptiotor8'  Ciplla! 

Rest 

f^bllo  Deposlts(includtDg 
Bxcliequer,  Savings 
Banks, Conimlssionera 
0/  National  Debt,  and 
Dividend  Aogounts)  , . 

t)il>er  Deposits 

Seven  Day  and  otber  Bills 


'4,553.000 
3,180,036 


4>.457.354 

133,820,292 

10,118 


f  193,020,800 


Government  Securities 
Other  Securities    .. 

Notes 

Gold  and  Silver  ColD 


£ 
11,015,100 
7,434,900 
61,124,335 


f79.574,335 


£ 

57,316,732 

105,522,431 

29, '197,785 

583,852 


i  thM  May  i6,  1918. 


fi93,020,8oo 
E.  M.  HARVEY,  Chief  Cashier. 


BANKING     DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
•with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
■corresponding  return  last  year. 


l.ast  year. 
May  16. 

May  S, 
1918. 

May  15, 
igi8. 

Increase. 

Decrease. 

£ 

3.i35.'07 

54,172.724 

•19,375,972 

37,907 

45,049.406 

1111,479.848 

34.745,456 

Liabilities. 
Rest 

Pub.  Deposits  .. 
Oiber    do. 
7 ')ay  Bills 
Assets. 
Gjv.  Seourlilei. 
Other       do. 
Total  Reserve.. 

NoleClcculalion 
Coin  andBullioo 
Proportion 
Bank  Rate 

e  ^ 
3,147,637 

37.573.'52 

128,129,817 

10,772 

55,871,732 
97,410,123 
30,132,523 

49,682,gSo 

61,365,503 

182  p.C. 

5       ,, 

3,180,036 

41,457.354 

133,820,292 

10,118 

57,3'6,732 
105,522,431 
30,l8l,63> 

49,976,550 
61,708,187 
17-2  p.C. 
5 

£ 

32,399 
3,884  202 
5,690,475 

Decrease. 
9,607,076 

£ 

~654 
Increase. 

I.445.0C0 

8,112,303 

49,114 

9,607,076 

38,724,155 

■55,019.611 

20  p.C. 

5  „ 

Increase. 

£ 

293,570 
342,684 

Decrease. 

1-0  p.C. 

LONDON 

BANKERS' 

CLEARING. 

Date. 

Increase. 

Decrease. 

January 
February 
March 
April 

May          1 

„             8 

15 

1918. 

2,073,224,000 

1,605,654,000 

1,784,836,000 

1,446,306,000 

378,749,000 

384,904,000 

392,971,000 

1917. 

1,865,12^,^00 
1,779.^24,000 
1,492,825,000 
1,403,902,000 
364,965,000 

4' 6,840,0  0 
338,984,000 

£ 
208,099,000 

292,011,000 
41,404,000 

13,784,oco 
53,987,000 

£ 

173,870,000 

21,936,000 

Total 

8,066,594,000 

7,652,165,000 

610,285,000 

195,806,000 

PUBLIC   INCOME   AND    EXPENDITURE. 

(For  7  days  ended  May  11.) 


Revej*ue. 

Expenditure. 

£ 
2,083,000 

National  Debt  Service 

146.391 

Excise 

535,000 

Inter,  st,   &c.,  on  War  Debt 

2,319.316 

Estate,  &c.,  Duties  .. 

631,000 

Development  &  Road  Impvt 

Stamps 

2H6.000 

Payments  to  Local  Taxation 
Other    Consolidated    Fund 

10.380 

Land  Tax  and  House  Duty 

2D, 000 

'Property  and  Income  Tax 

715,000 

Charges        

— 

Excess  Profits  Tax  .. 

4,277.000 

Supply  Services 
Bullion  Advances     . . 

54,984.000 

Land  Values 

10,000 

— 

Post  Office       

700,000 

For    Advai  ce   for    Interest 

Crown  Lands 

— 

on  Exchequer  Bonds  un- 

Sundry Loans.. 
Miscellaneous 

, 

der    Capital  Expenditure 

40,000 

(Money)  Act,  1904  .. 
For  Treasury  Bills    . . 

— . 

Bullion  advances  repaid    .. 

120,000 

57,320,coo 

ForTreasury  Bills  for  Supply 

72,099,000 

Other  Debt  under  War  Loan 

3%  Exchequer  Bonds,  1930 

— 

Acts,  igu-16 

516.724 

j%  Exchequer  Bonds,  1922 . , 

— 

For    War     Loan  and     Ex- 

6% Exchequer  Bonds,  1920. . 

— 

chequer      Bonds      under 

KatioHil  War  Bonds         ..* 

13,030,000 

Section  61  of  Finance  Act, 

War  Savings  Certificates.. 

l,4C0,CO0 

1916,  and  Section  34,  1917 

945,32» 

4%  War  Loan,  1929-1942  1 
5%  War  Loan,  1929-1947  j  *  * 

Under   Telegraph    (Money) 

Act,  1913 

— 

Other  Debts  created   under 

Under    Post    Office    (Lon- 

War Loan  Act,  1915,  and 

don)  Railway  Act,  1913  .. 

— 

Finance  Act,  igi6.. 

16,789,087 

Under  Militarv  Works  Acts 

— 

Telegraph  Money  Act,  1913 

— 

Under  Housing  Act,  1914., 

— 

Under  Post  Office  Rly.  Act, 

Public    Buildings  Expendi- 

1913  

— 

ture  Act,  1903 

— 

Under  Military  Works  Act, 

Old  Sinking   Fund,  1907-8.. 

— 

Under  Public  Buildings    .. 

— 

Sinking  Fund,  1910-11 

— 

— 

China  Indemnity 

— 

Under  Housing  Act.. 

— 

East  African  Loan  . . 

— 

Repayment  of  Advance  for 

Cunard  Agreement  Act     .. 

— 

Interest     on     Exchequer 

Expenditure  Certifica:es   . . 

2,300 

Bonds           

— 

Depreciation  Fund  .. 

— 

•China  Indemnity 

— 

Suez  Canal  Drawn  Shares. . 

— 

East    Africa    Loan    repay- 

Temp.    Advances     Repaid 

5,000,000 

ments 

— 

Increase       in       Exchequar 

5uez  Canal  Drawn  Sdares. . 

— 

haVances        

— 

Ways  and  Means  Advances 

7,982,000 

Decrease      in      Exchequer 

balances       

548,346 
21,244,433 

£1 

£121,244^433 

CURRENCY   NOTES. 

Return  of  Currency  Notes  for  the  week  ended  May  15,  1918. 

Issued, 

Cancelled. 

Outstanding. 

£1  notes         

103.  notes        

Note  certificates 
Previous  total 

£ 

4,798,843 

',576,199 

490,000 

906.725.200 

2,614,304 

1,152,316 

40,000 

665,720,715 

175,953, '38  .' 
39.369.768 
28,740,000 

913,590,242 

669,527,336 

244,062,906 

Ratio  of  gold  held  against  notes,  this  week,  13.23  p.c. ;  last  week,  13.44  P-c< 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  4s.). 


Apr.  12,  1918. 

Apr.  5,  1918. 

Apr.  13,  '«'7. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

97,752, 4C0 
81,594,200 
10,500,000 

£ 
96,756,000 
76,232,600 
10,500,000 

67,673,800 
39,654,200 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

189,846,600 

171.4198,400 

4,700,200 

185,488,600 
174,615,400 

4,'^8o.8oo 

107,328,000 

82,159,200 

486,800 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

366,054,200 
12,944.800 

362,784,800 
12,701,800 

'89,974,000 
4,227,200 

Total  reserves  .. 
Bills  discounted— Members'.. 
Bills  bought  in  open  market 

378,999.000 
i42,56x,4co 
63,771.4(^0 

375,486,600 
114,776,600 
65,300,600 

194,201,200 
4,401,800 
t6  120, So") 

Total  bills  on  hand     . . 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec.     . 
All  other  earning  assets 

206,332,800 

10,847,400 

28,428,600 

754,200 

it!0,c77,2oo 

12,080,600 

53,080,000 

6i4,40» 

20,522,600 
7,243,600 

14,674,000 
3,063,600 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 

246,363.000 
363,000 
76,60 r. 800  ■ 

244,t63,2O0 

1,991,400 

69,399.400 

45,503,800 

214,200 
33,836,800 

Total  dfcdctns.  fm  gross  dep. 
5%Red.FundagFed.Res.bknts 
All  other  resources 

76,961,81,0 
107,400 
64.800 

71,350,800 
107,400 
64.800 

34,051.000 
t;o,oon 
coo.Soo 

Total  resources 

702.499.oco 

6qi,93f,8no 

274,736  800 

Capital  paid  in 

Surplus 

Government  deposits  . . 

Due  tomembrs  — Res.  accotint 

Collection  items 

Otherdeps  inc  For.Govt  crdts 

14,949,600 

226,foa 

20, If  4,600 

298,907,400 

47.6.54,000 

I7,0'S4,20O 

l4,8g»,»oo 
226,800 
20,963,600 
294,658,800 
45,227,800 
16,413.400 

11,281,600 

8.419,400 
148,308,400 

2^,213,a30 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn— nett  iiab. 
Ail  other  Iiab,  in  for  Gov  crdts 

383,730,200 

299,875,400 

1,600,000 

2,U7,000 

377,263.600 

295,984,000 

1,572,000 

1,9^6,630 

182,970,600 
80,361,800 

122,800 

Total  liabilities 

702,499.000 

691.931,800 

274,736,800 

Gold  res.  ag  nett  deposit  Iiab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Ratio  of  gold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio    of    total    res.    to    nett 
deposit  and   F.R,    note  lia- 
bilities comb  aed      .. 

61.9% 

58.8% 

60.3% 
62.5% 

60.0% 
60.6% 

60.3% 

62.4% 

72.1% 
102.S% 

84.7% 

NEW   YORK  ASSOCIATED    BANKS  AND 
(dollar  at  4s.). 


TRUST    CO.MPANIES 


Loans,  Discounts,  etc. 
Cash  in  Vaults  of  Membsrs 

Fed.  Res.  Bit 

Aggregate  Reserves    .. 
EscesB  Reserve. . 
Nett  Demand  Deposits 
Nett  Time  Deposits     . . 
U.S.  Deposits  Deducted 
Circulation 


£ 

906,310,000 

2 1  (1906,000 
107,430,000 
8,582,000 
743,134,000 
35,942,000 
70,766,000 
7,272,000 


Mayii,i9i8  May  4,  1918  April27,i9i8  May  12,  igty 


£ 

90?,902,oco 

21,138,000 
111,892,000 

11,848,000 
752,010,000 

36,812^000 

65,626,oco 
7,232,000 


901,584,000 


12,224,000 
746,684,000 
36,292,000 

7,2I.t,000 


I  716,234,000 


12,070,000 

711,704^000 

58,198,000 

5,748,000 


BANK 

OF  FRANCE   (25  francs  to  the  £). 

May  10, 1918. 
£ 

May  2,  1918. 

April  25,  1918. 

May  10,  1917. 

£ 

£ 

£ 

Gold  In  hand 

'33.73'.96o 

133,701,960 

'33,670,200 

'32,395,800 

Silver  la  band 

10,233,000 

10,244,640 

10,242,840 

10,282,960 

Bills  dtsoounteJ 

47,095,960 

52,643,240 

41,751,280 

21,825,000 

Advances 

39,960,240 

40,161,280 

55,891,160 

45.599,040 

Noteoiroulation 

1,080,473,440 

1,069,325,080 

1,055,810,040 

771,006,840 

Public  deposits 

1,878,760 

1,606,600 

2,231,560 

1,270,240 

Private  deposits 

122,0^1,200 

125,414.520 

'32, 530, '20 

100,726,160 

Foreign  Bills.. 

284,760 

381,440 

342,080 

117,680 

Proportion  between  bullion  and  circulation  20.86  per  cent.,  against  21.08  per 
cent,  last  week.  Advances  to  the  State  £646,000,000,  increase  £8,000,000.  The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium,  £'19,238,240, 
decrease  £22,880,  uid  at  the  branches  £24,434,600,  decrease  £121,600. 

IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  £). 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances        . .        .. 
Note  circulation 
Deposits 


May  7,  19(8.    April  30, 1918.  April  23,  igiS.    May  7,  I9i7. 


123,247,750 

77,577,250 

678,879,400 

590,116,600 
342,852,200 


123,239,800 
76,759,750 
694,389.400 
435,500 
591,039.650 
352,750.250 


123,236,250 
73.235,150 
634,934.950 
361,900 
578,201,550 
314,939.^50 


127,525,100 

25,458,800 

435,528,050 

462,000 

415,179,600 

197,604,900 


Clearing  House   return     during    March    £459,815,355.   against    £420,879,905 
in  February. 

BANK    OF   SPAIN  (25  pesetas  to  the  £). 


May  4,  1918  April27, 1918  Aprilao,  1918  May  5,  1917 


•Excluding  sales  through  banks  which  have  not  yet  been  brought  to  account. 


Gold         

Silver 

Foreign  Blll8 

DiscoautK  and  :3tiort  Bills  .. 
Tredsury  Account,  &c. 
Notes  In  Circulation  .. 
Current   A:counts,   Deposits 
Dividenas,  Interests,  &c. 
Sovecnment  Seouriiiea 


£ 

81,684.725 

28,200,850 

3.840,631 

30,522,723 

24,982^402 

"7.755,436 

35,300,191 

1,657.095 

3,081,971 


£ 

81,589,031 

28,435.357 
3.838,743 
29,895,505 
25,085,924 
116,431,718 
35,406,764 

1,9", 139 
3,169,589 


£ 

8', '04,753 

28,280,814 

3,736,343 

30,230,376 

25,011,667 

116,501,009 

34,875.995 

2,109,813 

3,410,170 


£ 
55,878,227 
29,991,260 
3,543.238 
33,642,414 
25,1*2,782 

97.594.112 

30,2ol',468 

l,496,'58 

8,698,540 


^83 


XTbe  Jnvestovs'  IReview. 


May  i8,  1918. 


NETHERLANDS  BANK  (12  Florins  lo  the  i). 


Gold  and  Silver 
Bills  and  Advancat 
Note  cIroulatloD 
Deposits, . 


May  II,  I9ii 

6o,77«,ooo 

18,080,500 

79.!64,583 

4.858.;50 


May  4, 1918 


Apr.27,1918. 


2, 1917 


SWISS  NATIONAL  BANK  (25  francs  to  the  £). 


Oold  and  sliver 

Bill! 

Note  oiroulatlon 
Current  and  deposit 
accounts     . . 


April  so,  1918.  April  23, 1918.  April  15, 1918 


3,315,280 


17.276,152 
10,6(9,1  6 
36,410,880 

3,447,212 


£ 

17,207,788 
10,241,904 

26,619,'  44 

3.532.244 


April  30, 1917. 


15.736,412 

8oi»,83J 

21. 155.3^0 

4,721,020 


BANK  OF  NORWAY  (18  kroner  to  the  £). 


Gold 

Balance  abroad  and 

Foreilin  Bills 
Gover'nt  Securities. . 
Discounts  &  Loans. 
Notes  Id  Ciroutatton 
Deposits  at  notice.. 


April  30, 1918. 


£ 

6,733,000 

3.645,000 

712,000 

18,446,000 

19,741,000 

6,445,000 


April  22, 1918. 

6.734.<  o ) 

3,590,000 

713,000 

18,450,000 

19,726,000 

6.457.000 


April  15, 1918. 


April  30, 1917 


£ 
7,165,000 

4,ii7,coo 

70^,000 

i2,438,co3 

I5.*'85,ooo 

6,703,000 


LONDOn  COURSE  OP  EXCHANGE. 

Place. 

Usance. 

May  14,  1918. 

May  16,  I  91 8 . 

Sellers. 

Buyers. 

Sellers.  Buyers. 

Amsterdam  , .     . , 
Paris      

Switzerland..     .. 

Genoa,  &c 

Spain     

Lisbon  and  Oporto 
Copenhagen. .     . . 
Christiania  . .     . . 
Stocltholm   ..     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills . .     . . 

Cable  transfers 

Thre«  months' bills  . .     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills  . .     . . 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

963 
27.13 
27.53 
"945 
1970 
43.10 
16.94 
65 
281 
15.12 
15  12 
1390 

9.68 
27.18 
27.58 
19-55 
19.80 
43-20 
17.C4 

m 

295 
15-22 
15-22 
14-00 

932 
2713 
27-53 
18.90 

i9-'5 

4i-05 

16.95 

65J 

29! 
15-07 
15-03 
13-75 

9-37 
27.18 
27.58 
19-05 
19.40 
43-15 
17-05 

/d 
15-17 

15-13 
1385 

FOREIGN   RATES    OF   EXCHANGE   ON   LONDON. 

Method  of 
Quoting. 

a,  H 
a 

Last 
Week. 

This 
Week. 

Paris,  cheques 
Amsterdam,  cheques 

Italy,  sight 

Madrid,  sight 

Lisbon,  sight 

Switzerland,  sight    .. 
Christiania,  sitiht      .. 
Stockholm,  sight 
Copenhagen,  sight   . . 
Petrograd,  sight 
Alexandria,  sight 
Bombay,  T.T. 
Calcutta,  T.T. 

Hong  Kong,  T-T 

Shanghai,  T.T 

Singapore,  T.T 

Yokohama,  T.T 

New  Vorlt,  cable      .. 

Buenos  Aires,  T.T 

Valparaiso,  90  days.. 

■•tomevideo,  T.T 

Rio  de  Janeiro,  ()o  days    . . 

Friincs  10  /i 
Florins  to  £1 
Lire  to  f  I  . . 
Pesetas  to  f  I 
fence  to  milreis  . . 
Francs  to  /i 
Kroner  to  £1 
Kroner  to  f  i 
Kroner  to  ^i 
Roubles  to  ;f  10     .. 
Piastres  to  £1 
Sterling  to  rupee. . 
Sterling  to  rupee.. 
Sterling  to  dollar.. 
Sterling  to  tael 
Sterling  to  dollar. . 
Sterling  to  yen     . . 
Dollars  to  £1 
Pence  to  dollar    . . 
Pence  to  peso 
Pence  to  dollar    . . 
Pence  to  milreis  . . 

25 .22  J 
la.ior 
25.22* 
25.224 
53ld. 
25.22J 
18.159 
18.159 
18.159 
94-57 

97j 

1/4 

1/4 

2i.58d. 
4-861 
47-583. 

5ld. 
I6d. 

t7^l 

2& 
1957} 
i5-i;J 
14.02 

15.20 

nom. 

974 

1/5|; 
1/5!! 
3/18 
4/6 

1 

i34d. 

27.144 

9-30 
430S 
16-95 

3oJd. 
18.35 
15-01 
»3-64 
15-11 

nom. 

1/5I4 
3/i| 

fm 
1% 

52}d. 
i6Hd. 
65id. 
13Ad. 

UPEN  MAKKCT  DISCOUNT.  Last  week.  Thlsweek 


Thirty  and  sixty  day  remitted 
Three  uiouths  ,, 

Four  luontbt  ^^ 

Six  months  , 

Three  months  fine  iaiand  bills 
Four  months 
Six  tuonths 


Per  cent. 

3t3T-35 

'i 


Per  cent 
•  3A— 34 

:    l\ 


BANK    AND    DEPOSIT    RATES,    La.t  week  This  week 

Percent.    Per  cent. 


Bink  of  Bufflaod  minimum  discount  rate  5 

II  II         short  loan  rates  ..  ,.  * 

Bankers' rate  on  deposits H  [^         ^^         - 

Bill  brokers' deposit  rate  (call)       .,        ..  \\  "         [\        ^ 

„  7  and  14  days'  notice  ,.  ,,  " 

Current  rates  lor  7  day  loans  ] 

,.  for  call  loans 


3 
3 

i3 

ai— 3 


The   Week's    Stock    Markets. 

There  is  less  and  less  to  Ije  said  in  a  general  way  about  thc- 
St(K;k  markets.  On  the  whole,  considering  the  small  number  of 
transactions  dealt  with,  the  tone  has  been  wonderfully  good 
under  the  lead  of  gilt-edged  securities,  which  have  benefited  by 
the  idea  that  a  reduction  in  Treasury  bill  and  deposit  rates  will 
be  put  in  force  shortly.  Arguments  in  favour  of  and  against 
this  course  are  about  equally  divided,  and  it  is  just  conceivable 
that  if  the  purchase  of  Treasury  bills  were  curtailed  money 
would  flow  more  freely  into  the  more  permanent  National  War 
Hcnds,  but  past  experience  does  not  altogether  justify  that  view, 
and  the  needs  of  the  Kxchequer  are  so  insistent  that  mere  patch- 
work arrangements  of  the  kind  suggested  are  likely  to  do  more 
harm  than  good.  There  is  plenty  of  surplus  cash  in  the  country, 
;is  the  persistent  demand  for  speculative  investments  proves,  but 
we  do  not  think  our  rulers  are  going  the  right  way  to  annex 
it.  If,  however,  they  play  about  too  long  they  may  easily  lanri 
us  in  a  very  deplorable  mess — all  the  more  aggravating  because 
entirely  unnecessary.  

Business  on  the  Stock  l^xchange  has  been  extremely  quiet 
throughout  the  week,  and,  except  on  Monday,  when  there  wa.-, 
the  usual  accumulation  of  orders  over  the  week-end,  the  number 
of  transactions  has  never  nearly  reached  3,000  markings.  On 
the  whole,  however,  the  tone  has  been  good,  and  gilt-edged 
-securities,  particularly,  appear  to  have  been  in  moderate  de- 
mand. Consols  eased  off  a  trifle,  but  the  5  per  cent.  War  Loan 
advanced  a  very  substantial  fraction,  and  Local  I-X)ans,  Indian 
issues,  and  a  few  others,  all  iinproved.  Hank  .stock  also  gained 
several  points,  no  doubt  on  hopes  that  the  new  management  will 
do  something  to  give  stockholders  a  larger  dividend.  Colonial 
issues  showed  conspicuous  strength  at  the  beginning  of  the 
week,  and  some  of  the  shorter-dated  issues  were  in  particular 
request,  as  there  is  a  demand  for  such  stocks  whjch  will  yield 
nearly  6  per  cent.,  allowing  for  repayment.  In  the  Foreign 
market,  Spanish,  Japanese,  Brazilians,  and  IJruguays  were 
dull,  but  at  times  Chinese  were  strongly  suppqfrted.  Peruvian 
Corporation  was  in  some  request,  and  advanced  a  fraction. 

Home  Railways  opened  firm,  and,  after  slight  flucluations, 
closed  good,  with  considerable  gains,  owing,  probably,  to  the 
increase  in  .season  ticket  rates,  which,  we  may  be  sure,  will  not 
go  back  to  their  old  level  for  some  time  after  the  war.  -Ameri- 
can Railroads  showed  more  animation  than  for  some  time  past, 
and  Southern  and  Krie  preference  were  particularly  good. 
Among  Foreign  Railways,  Antofagasita  showed  strength,  and 
San  I'aulos  and  Mexican  ordinary  also  improved,  but  Argen- 
tines were  weak  in  spite  of  the  favourable  traffics.  However,  the 
labour  situation  is  still  so  vague  that  the  outlook  must  be  re- 
garded as  uncertain.  Canadian  Pacifies  only  just  held  their 
ground,  and  Trunks  displayed  a  moderate  amount  of  firmness 
on  the  news  that  negotiations  for  the  purchase  of  the  system  by 
the  ("anadian  Government  are  still  in  progress. 

Bank  shares  were  exceptionally  in  favour,  and  Colonial 
i.ssues  received  quite  a  large  amount  of  Support,  with  the  result 
that  prices  nearly  all  round  are  higher.  Breweries  were  good, 
and  did  not  seem  to  be  at  all  alarmed  at  the  prosfiect  of  State 
purchase.  Guinness  gained  as  much  as  7  points,  and  Allsopps, 
Watney,  Combe,  and  Meux  were  very  strong.  Egyptian 
securities,  after  a  feeble  opening,  generally  improved,  and 
several  good  gains  are  recorded,  but  Sidi  Salem  declined  a 
fraction-  Land  shares  were  not  in  much  evidence,  and  Hud- 
son's Bays  declined  a  little,  while  Nitrates,  after  a  firm  open- 
ing, reacted,  and  lost  most  of  the  earlier  gains-  Shipping 
shares  were  steady,  without  much  movement,  except  that  P. 
and  O.  deferred  and  Royal  Mails  both  gained  a  point  or  two. 
-Unong  Miscellaneous  Industrials,  Catering  shares,  like  Aerated 
Bread  and  Lyons,  and  a  few  others,  were  well  supported,  and 
probably  there  is  reason  to  believe  that  profits  under  present^ 
arrangements  are  exceptionally  favourable.  Iron  and  Ste^' 
shares  generally  were  good,  but  Birmingham  Small  Arms, 
Nobel  Explosives,  and  one  or  two  others  declined  fractionally. 
Courtaulds  were  adversely  affected  by  the  sale  of  a  fairly 
large  block  to  an  outside  firm  bj'  the  Public  Trustee,  and  this 
has  given  rise  to  a  considerable  amount  of  ill-feeling.  Fine 
(Cotton  Spinners  gave  way,  in  spite  of  the  excellent  report  just 
issued,  but  expectations  had  been  pitched  high.  Alby  Carbides 
naturally  gave  way  on  the  terribly  poor  results  reported,  and 
it   is  rather  surprising  that   the  reaction  was  not  greater. 

Oil  shares  general!}'  have  been  wonderfully  firm,  considering 
the  difficulties  under  which  most  of  the  companies  are  work- 
ing. "  Shells,"  North  Caucasian,  Roumanian  Consolidated, 
and  Burmahs  all  showed  considerable  gains,  but  in  a  good 
many  cases  the  closing  prices  were  below  the  best.  Rubber 
.shares  have  naturally  been  affected  by  the  continued  fall  in 
the  price  of  the  raw  material,  but  holders  are  evidemtly  un- 
willing to  part  while  the  ultimate  prospects  of  the  industry 
are   still   regarded   as    so  favourable. 

It  happens  so  often  that  the  Board  of  Trade  returns  reach 
us  late  on  a  Friday  afternoon  thnt  we  are  almost  forced  to 
the  cojiclusion  that  the  time  is  fixed  by  design  and  not  by 
.iccident.  At  any  rate,  we  must  be  content  this  week  with 
stating  that  imports  in  April  amounted  to  ;£iiq,<S 33,000,  an  in- 
crease of  no  less  than  ;f35,30o,ooo,  and  by  far  the  largest  figure 
ever  recorded.  Exports  showed  an  increase  of  ;f4,272,ooo  at 
;f 40,07 1 ,000,  but  re-exports  dwindled  to  ;f2, 141,000,  a  de- 
crease of  as   much   as  ^^6,348,000.     For  the   past  four   month* 


May   i8,   1918. 


X£bc  Jnveetors'  IReview. 


483 


imports  have  amounted  to  £^2^,gi 2^000,  an  increase  of 
^^97,890,000,  but  exports  are  ;if7, 220,000  lower  at  ^156,840,000 
aiid   re-exports   have   fallen    ;f22, 220,000   to   the   low    level     of 


I  Last 
'Week; 


This  11 

Week  1 1 


Consols. 
War  Loan 


aH 

5%    i929--)7. 

,    ..  4%,  i9-'9-42. 

India  3% 

M     3i(% 

Australian  53%,  1920-22  . 

Canada  4%,  1940-60 

■  .       4%.  '920-5 

Argentine  5%  1886 

Belgian  3% 

Brazil,  iqi3 

„^...       5%.  1914    

Chinese  1896  

i.       1912  ,,. 

Egypt  Unified  4% 


Caledonian  defd. 

Gt.  Central  pra 

J,        „        dfd 

Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd. 
London  Chatham  ord. . . 
Canadian  Pacific 


E.  Indian  Guar.  4A  %  debs. 
Grand  Trunk  ord.    

Do,  ist  pf 

Do.  3rd  pf 

Antofagasta  dfd 

B.  A.  &  Pacific  

B.  A.  Gt.  Southern  

B.  A.  Western    

Cent.  Argentine  ord 

Anglo-South  American   ,. 

Bank  of  Australasia 

Bank  of  N.S.  Wales 

Barclay  &Co.  "A  " 

Do.       *'B'* 

Capital  &  Counties   

Chartered  of  India    

Hongkong  &  Shanghai    . . 

Lloyds 

Armstrong,  Whitworth.. 
Birmingham  Small  Arms 

Cammell-Laird 

Cargo  Fleet 

Davis,  D.,5/   

Dorman,  Long  

Associated  Cement 

Borax  dfd '. . 

Bovrit    

British  Amer.  Tobacco  pf. 

British  Aluminium 

British  Oil  &  Cake    

firunner,  Mond 

Castner-KeUner 

Eastern  Telegraph   

Ifastmans . . . .  

Ounard 

Fumess,  Withy 

P.  &  O.  dfd 

Royal  Mail 

Anglo  Argentine  ist  Pf. .. 

Brazil  Traction 

Datracq    

Anglo-Kgyptian  '*  B*'  .... 

Burmah 

Lobitos 

Mexican  Eagle  pf 

North  Caucasian 

Roumanian  Cons 


AHagara/- 

Anglo-Dutch,  £i    

AuKlo-Java  Rub.  2/-     . 

Anglo-Malay  2/ 

Ayer  Kuning  £1 

Brit.  N.  Borneo  Trust  £1 

Bukit  Cloha/- 

Bukit  Mertajam  2/-  

Bukit  Sembawang  2/-  .... 

Carey  United  £1   

Chersonese 

Chevi  t  2/-   

Dalkeith  2/- 

Grand  Central  £1 

Highlands  £1 

Java  Investment  £1 

Johore  Rubber  Lands  £i. . 

Kamunin    2/- 

Kinta  Kellas2/-  

Labu2/- 

Langen  Java  £1 

Linggi2/- 

London  Asiatic  2/- 

Malayalam  £1 

Merliniau  2/-   

Bechuanaland  Exp.  - 

Brakpaii 

Broken  Hill  Prop.  (8/-)   .. 

Cam  &  Motor 

Central  Mining  (£12) 

Chartered    

City  Deep      

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (10/-) 

De  Beers  did.  (£2101.)  .. 

East  Pool('/-) 

East  Kind    

Geduld 

Geevor  (10/-)   

Gov.  Areas  Mod     

Gt.  Boulder  (2/0    


N.S.W.  5%,  1921-3   

..    5i%.  1920-3 

„      52%Debs 

New  Zealand  4%,  1929  . . 
Queensland  4^%,  1920-5., 
S.  Australian  5^%  1922-7.  ■ 
Union   of  S.  Africa  4^%, 

1920-5     

Victoria  44%.  1920-5 

Westn.  Aus.  4%    

French  War  Loan,  5%  .. 
Japan  4j%  (ist),  1905    .... 

5%.  1907 

Mexican  5%,  1899   

Russia  4   % 

•>   4i%,  1909 

..       5%.  1906 

London  and  N.-W.  .... 
London  and  S.-W.  dfd.  . . 

Metropolitan 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth. -Eastern 

Sth.-Eastern  dfd 


Last 
Week 


Chesapeake. 

Erie 

Southern  ... 


Leopoldina 

Mexican  ord 

San  Paulo  (Brazilian).,. 
United  of  Havana 

London  &  Brazilian 

London  City  &  Midland. 
London  County  &  West/.. 

London  Joint  Stock 

Nat.Prov.(jfioJpd) 

Do.  (jf  12  pd) 

Standard  of  S.A 

Union  Discount 


Kynochs  

Mond  Nickel  ord 

Nobel,  £1    

South  Durham  Steel  ... 

Thornycroft    

Vickers  

Forestal  Land 

Hudson's  Bay    

Imperial  Tobacco  'C'  pf. 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Nf arcont    

Maypole  Dairy  dfd 

Pears,  A.  &.  F 

Underground  Inc.  Bds.  . . 


Coats 

Courtaulds 

Snglish  Sewing  Cotton  . 
F^ine  Cotton  Spinners  ... 

Harrods  Stores 

Demais  Bros 

National  Steam  Car 

Rolls-Royce 

Shell 

Spies  (10/-) , 

Trinidad  Leaseholds  ... 
Ural  Caspian 


Venezuelan j     ig 


Perak  2/-   

Port  Dickson  2/-   

Rub.  Estates  Krian  2/-. 

Rubber  Trust  £1 

Sampang  (Java)  2/-... 

Seaport  £1 

Sengat  2/- 

Seremban  £1  

Sialang  £i    

Singapore  Para  2/-    . . . 
Singapore  United  2/-    . 


Pataling  2/- 

Straits  Bertam  2/-  . . . . 

Sumatra  Para  2/- 

Sungei  Bahru  £1  .... 

Taiping  2/-  

Tandjong  £1    

Tandjong  Malim  £1,, 

Tebrau  £i  

Telogoredjo  £1 

Tempeh  2/- 

United  Serdang  2/-  . . 

Vald'Or  2/- 

Vallambrosa  2/- 

Kyshtim    

Mashonaland  Agency 
Meyer  &  Charlton    .. 

Modder  "B" 

Do.    Deep 

Mj-sore 

Nigerian  Tin 

Pahang  (3/-) 

Rdnd  Mines  (5/-)    .... 

Renong 

Rio  Tinto  (£5)   

Russo-Asi  itic 

South  Crcfty  (5/-) 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep   


40/ 

7/t'i 
3^ 

80/6 
30/6 

60/ 
3^/6 

2/4 
91 -'Oi 

3/7i 
19/3 


LONDON    PRODUCE    MARKETS. 

Sugar.— Quotations  remain  unaltered  for  all  descriptions. 

Coffee. — Public  sales  of  moderate  extent  proved  steady,  with 
good  competition  for  all  mild  liquoring  descriptions,  but  inferior 
grat^es  moved  off  slowly.  Mocha,  fine  long-berry,  sold,  at  122s.  6d. 
to  123s.  6d.  ;  Costa  Rica,  good  bold,  134s.  6d.  ;  Nairobi,  fair  to 
fine  bold,  ii8s.  to  140s.  6d.  ;  Uganda,  fair  to  good,  io6s.  6d.  to 
iios.  6d.  ;  Jamaica,  low  mid,  ggs.  The  terminal  market  remained 
inactive,  and  prices  quite  nominal. 

Cocoa  r*!servedly  offered,  and  a  small  business  transpired  at 
graded  prices. 

Spice.— Cloves  quietly  steady  at  2s.  5d.  for  fair  Zanzibar,  on 
spot.     Pepper  firmer.     Fair  black   Singapore,  spot,  sold.  is.  5d. ; 

CURRENT     PRICES    OF    CHIEF    ARTICLES. 

WEEK    B^4DING    MAY  17.  1918. 


Last 

I    Week. 


Tois 
Week . 


Bugar— per   cwt 

duty    25,8,  98% 

polarisation 
Tate's  Cubes 
Crushed..  .. 
Granulated  .. 
Lyle's  granulated 
Foreign  granu- 
lated, first  marks 

f.o.b.,  spot 
GermanCubef.o.b. 
French  Cube 

prompi 
Crystallised,  West 

India 

Beet,    68%    f.o.b 

Tea— per  lb.,  duty 

I/-  lb. 
Indian  Fekoe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe    Souobong 
CeyloD  Pekoe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe  Souohoiig 

Ooooa  —  per  cwt, 
duty  6d.  per  lb. 

Trinidad — per  owl 

Grenada 

West  Africa..     .. 

Ceylon  Plantation 

Guayaquil     ..     .. 

OoCTee — per    cwt. 
duty  42/- per  cwt. 

Sast  India    ..     .. 

Jamaica 

Costa  Rica  ..     .. 

Provlsloni— 
Butter,  per  cwt. 

AuEiralian  tinest 

Argentine     . .     . . 

Iribli  Creameries 

Dutch  diiio.. 

Russian  finest     .. 

Paris  baskets 

Danish  finest 

Brittany     rolls  — 
doz.  lb 

Bacon— per  cwt. 

Irish      

Continental ,.  .. 
Canadian  ..  .. 
Americao  ..  .. 
flamt — per  cwt. 

Irish       

Canadian  ..  . . 
American     ..     ,. 

Oheese — per  cwt. 
Dutch 

Canadian     .. 
English  Cheddar 
Wilts  loaf    .,     .. 
New  Zealand 

Rica— per  cwt. 

Japan     

Rangoon  3  stars  . . 

Bg^s— per  lao. 

English 

Irish      

Danish 


Spelter— 

G.O.B.  as  to  posi- 
tion      


Flour— per  sack. 

Country  Straight 

Runs  ex  Mill .. 


f    s.   d 


3    4  9 

3    4  9 

2  17  9 

2  17  9 


nom. 
nom. 


2  17    9 
nom. 

s.  d. 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 


86  o  go  o 
80  085 
60  o  65  o 
7^  0100  o 
up  to  gt  o 


no  o  135  0 
77  5  151  :3 
iioo  Ij7 


252/ 
252/ 

nom. 
nom. 
nom. 
nom. 
nom. 

nom. 


188/ 
172/ 

1 70/- 1 7:/ 

1 70/- 1  CO/ 

nom. 
1 6 1/- 1 65/ 
I 25/- 165/ 

nom 

nom. 

126/-168/ 

noin. 

noir.. 

s.  <i, 
41  3 
26    3 


36  0-37  0 
32  6-33  6 

J 5  0-36  6 


£54  £50 
44/3 


C   ««.    d. 


3  4  9 
3  4  9 
279 

2  J7    9 


nom. 
nom. 


2  17    9 
nom. 


s    d.  s.  d. 

S6  o  go  0 
79  o  85  o 
55  o  65  0 

85    O    03  ti 

up  to  90  O 


iio-o  135-0 
77-0  151-Q 
iio-o  i.'}7-d 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


188/ 

172/ 
17  /-172/ 
i;o/-i8o/ 

nom. 
162/- 165/ 
125/-165/ 


nom. 
noin. 
102/8-149/ 
nom. 
nom. 

'.  .1 
41  3 
26    3 


36  0-37  0 
34  6-35  o 
36  o  37  0 


£54  £50 
44/3 


Woot— per  lb. 

Australian 
Scoured  Merino 
Scoured  Cr'ssbr'd 
Greasy  Merino  .. 
Greasy  Crossbred 
Ne  w    Ze  a  I  an 

(scoured)  Merin^, 
Greasy  Crossbred"! 
Cape  snow  white 

Indlarubberp.lb 

Plantation,      Spot 
Crepe  .  •    , , 


Goal— per  ton 

Djirham,  best  . 

Seconds        ..  .. 
b^ast  Hartlepool. 

Seconds       ..  . 

Steams,  best  . 

Seconds       ..  . 

Lead— per  too. 
English  Pig..     . 
I'^oreign  sott,  net 

Qulckillver— per 

bottle  firsthand 


Tin— per  ton 

(English  Ingots 

Do.    bars 
Standard  cash 
rmPlates.perboji 

Copper— per  ton. 

iingltsh,     Tough 

per  too      . .    .  - 

liest  Selected    . . 

Sheets 

Standard      . .     . . 


Jute— per  ton 

Native   firsts    for 
shipment 

Olla— 

Unseed,  per  ton. 
Rape,  crude  ... 
L.uit'n  Scda.cruiii 
Petroleum  Oil, pe 

8  lbs. 
Water  White      . 
Oil  Seeds, Linsee 
Calcutta— per  ton 

Sp3t 


Uape     

Iron— per  ton 

Cleveland  Cash  .. 

Tobacco  —  duty, 
uiiHianufactured 
8/2-10/4^  per  ib. 

ViiK'Uia'Ciit. 

Kentucky  leaf    . 

Latakia 

tiavana ..     .. 

Cigars,  duty  15/7 
pec  lb. 


Timber— Wood. 

Fitch  i-'ine    . .    . 
Indian  Teak 

Turpentine- 
American  Spot  . . 

Copra— per  ton 
Malabar        . .     . . 

Cey  on 

F.M.S.  Sineapore 
F.M.    Straits      .. 


nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom 


nom. 
nom. 
nom 
nom. 

32  6 

29  6 

£    ^.  d 
nom. 

r29i-£28j 


3C400 

jC40I 
^380 
nom. 


nom. 

C 1 19-^123 

£149 
{"iio-iioj 


f58 
£66 
£60 

Uio\ 
i/iii 


By  agree- 
ment. 
^29-10/30 


16-26 
I  o  -I  6 
nom. 
1666 

2/  upds. 


500/ —  400 

j8o/—  700 

120/ 


46  0 
46  0 
45  10 
45  10 


This 
Week. 

C  8.  d. 

nom. 
nom. 
nom. 
nom. 

nom 
nom. 
nom.- 


nom. 
nom. 
nomi 
nom. 
32  6 
29    6 

i     8.  d. 

nom. 


nam. 
n^m. 

£364 

nom. 


nom. 

^Ii9-£ia3; 

r  ^'*^^ 
£110-1104 


£i» 

£66 
£60 


i/ioj 


By  agree- 
ment. 
£29-io£30- 


I  6  -a    6 
I  o— I    6 
nom. 
I  6-6    6- 

2/  upds. 


,300/— 400/ 
\iiJl-700l' 

120/ 


46  o 
46  o 
45  10 
45  10 


;£i  1,263,000.     We   must   leave   a  more  detailed  examination  of 
the  figures   till   next  week. 


Tellicherry,  is.  sjd.  ;  Aleppy,  is.  sd.  ;  white  Singapore,  2s.  5jd. ; 
and  Muntok,  sold,  2S.  sjd.  to2s.  6d.  Tapioca,  fair  flake,  spot,  7id. 
Pimento,  spot,  value,  sjd. ;  and  cassia  lignea,  whole,  selected,. 
92s.  6d. 

Shellac. — There  is  no  iresh  feature  in  this  market,  with  busi- 
ness unimportant.  Fair  T.N.  orange,  spot,  sellers,  3403.  ;  and 
May-June  shipment,  305s. 

Rubber. — Dealings  were  on  a  moderate  scale,  and  prices  tended 
easier.  Standard  crepe,  spot,  sold,  2s  3jd.  to  2s.  2jd.  ;  June, 
2s.  3jd.  to  2s.  3d.  ;  July-December,  2s.  4jd.  to  2s.  4jd.  ;  October- 
December,  2s.  5jd.  to  2s.  4jd.  Smoked  ribbed  sheet,  spot  and 
May,  2S.  2jd.  to  2s.  ifd.  ;  and  fine  hard  Para,  spot,  quoted,  3s. 
per  lb. 


4*4 


Zbc  5nve8tov8'  IReview* 


Mav  i8,   1918. 


Isinglass. — Public  sales  of  moderate  extent  met  with  good 
support,  but  prices  irregular  and  easier.  Lump,  fair  palish,  sold, 
los.  to  I2S. ;  leaf,  fair  to  good  palish,  los.  3d.  to  15s.  3d. ;  tongue, 
fair  to  good  pale,  gs.  6d.  to  12s.  3d. 

CoR.N  (Mark  Lane). — While  remaining  distinctly  steady,  there 
faas  not  been  much  fresh  business  transacted  this  week,  offers  being 
still  on  a  limited  scale.  English  wheat  nominal  at  76s.  gd.  per  qr. 
(504  lbs.).  Of  imported  descriptions.  No.  i  Northern  Manitoba 
has  been  placed  at  82s.  3d.,  and  No.  2  hard  winter  at  803.  gd. 
Australian  quoted  at  851.  6d.  Flour;  English,  44s.  3d.  per  sack, 
ex  mill.  Imported  grades  realised  sos.  3d.  to  51s.  3d.  Dealings 
fair.  Oats  :  Some  American  white  clipped  No.  2  realised  6is.  6d. 
Maize:  American  mixed,  on  landed  terms,  changed  hands  at 
81S.  3d.,  being  very  sparingly  submitted. 

Cotton  (from  our  Manchester  correspondent). — There  has  been 
very  little  activity  in  the  market  during  the  past  week,  and  most 
of  the  transactions  have  been  of  retail  dimensions.  Traders  are 
very  uncertain  as  to  the  future  course  of  events,  and  it  is  a  long 
time  since  there  was  so  little  enterprise  on  the  part  of  buyers. 
Numerous  producers  have  not  been  at  all  anxious  to  sell,  there 
-being  a  general  desire  to  reduce  contract  lists.  The  wages  question 
has  been  considered  by  the  masters  and  the  trade  union  officials, 
and  a  further  conference  will  be  held  on  Wednesday  next  It 
is  understood  that  important  decisions  by  the  Control  Board 
are  pending.  The  inquiry  in  cloth  for  our  leading  outlets 
abroad  has  been  generally  disappointing,  there  being  very  few 
workable  offers.  India  has  not  been  at  all  active,  most  of  the 
buying  being  in  light  fabrics  such  as  mull  dhooties.  No  better 
news  has  come  through  from  China,  and  trading  has  been  of  very 
small  extent.  Here  and  there  rather  more  business  has  been 
reported  for  South  America.  Egypt,  after  being  a  healthy  market 
for  several  months,  is  now  giving  less  support,  chiefly  owing  to 
the  fact  that  supplies  on  the  other  side  have  recently  increased. 
A  steady  demand  has  been  experienced  in  fancy  goods  for  the 
home  trade.  The  turnover  in  home  American  yarns  has  not  been 
at  all  important.  Users,  however,  have  searched  for  supplies, 
and  have  been  willing  to  pay  top  prices  for  small  lots  to  be  sent  in 
.at  once.  There  has  been  very  little  forward  buying.  Export 
bundles  have  not  attracted  much  attention.  Here  and  there  fair 
lots  have  changed  hands  in  Egyptian  spinnings,  but  there  has  not 
-been  any  general  buying  movement. 


The  Week  in   Minos. 

Business  has  been  moderately  active  in  the  Mining  markets 
this  week,  and  the  tone  has  been  quite  firm  as  a  rule,  though 
towards  the'  end  of  the  week  the  market  showed  a  disposition  to 
mark  time.  The  principal  incident  has  been  the  activity  and 
buoyancy  of  Broken  Hill  shares  on  the  publication  of  an  official 
statement  as  to  the  terms  of  the  zinc  contract.  Tin  shares  have 
been  prominently  firm,  and  some  of  the  leading  South  Africans 
have  shown  unwonted  firmness. 

South  and  West  Africans. 
In  the  South  African  market  Eastern  Rand  shares  have  been 
supported,  notably  East  Rand  Mining  Estates,  which  have  risen 
IS.  bd.  to  19s.  3d.,  Gedulds,  which  are  J^  higher  at  2  3-32,  and 
Sub-Nigeis,  which  have  risen  i  to  i^.  City  Deeps  have  further 
improved  to  3  7-32,  and  Crown  Mines  have  rallied  after  a  long 
period  of  depression,  the  quotation  being  3-32  higher  at  i  31-32. 
.In  sympathy  Central  Minings  have  risen  to  (JtV.  and  Rand 
-Mines  to  2^.  Profit-taking  has  caused  a  relapse  in  the  Gold 
Fields  group.  Gold  Mines  Investments  being  is.  lower  at  23s.  gd., 
-and  Gold  Fields  are  back  to  33s.  6d.  Shares  of  the  Barnato 
group  were  supported  on  the  issue  of  the  reports;  Modder 
Leases  rising  to  3U,  Modder  B's  to  7-H-,  Modder  Deeps  to  7-,^. 
and  Van  Ryn  Deeps  to  3-^.  Roodepoort  Uniteds  have  been  flat 
at  5s.  Among  Rhodesian  shares  Gaikas  have  advanced  3-32  to 
31-32,  but  Tanganyikas  have  been  offered  down  to  3  3-32.  West 
Africans  have   been  steady. 

Copper  and   Miscellaneous. 

The  only  movements  of  interest  in  the   copper  market    have 

■been  rises  of  %   to  6b^   in  Rio  Tintos,  and  of  gd.   to  28s.  3d. 

in  Mount  Lyells.     Despite  the  reaction  in  the  meUl  market,  tin 

shares   have   been  very  firm.      Berridas   have   risen  2s.    3d.  to 

13s.  6d.,  and  Tincrofts  have  been  actively  bought  up  to  i6s.  on 
the  idea  that  the  terms  for  converting  the  priority  shares  will 
be  modified.  Anglo-Continentals  at  i6s.  3d.  were  not  affected 
by  the  doubling  of  the  dividend,  the  increase  having  already 
been    discounted.     Broken    Hills   have  been  active  and   strong. 

British  Proprietarys  are  2s.  6d.  higher  at  47s.  6d.  after  having 
touched   4gs. ;  South   Silvers  have  risen  ii  to   loj^.    Sulphides 

IS.    3d.    to  28s.    3d.,  and    Zinc    Corporations    is.   3d.    to   24s. 

Mexican  shares  have  weakened  slightly  on  the  imposition  of 
new  export  taxes  on  metals  shipped  from   Mexico. 


MINING  NEWS. 


Plymouth  Consolidated  Mines.— A  nett  profit  of  ^34,984 
was  made  in  1917,  as  compared  with  /45,36i.  Two  dividends 
of  IS.  each  were  paid  during  the  year,  .igainst  three  dividends 
•of  IS.  each  in  1916,  but  a  further  dividend  of  is.  per  share 
was  paid  on  January  31  last.  The  most  important  result  of  the 
year's  development  work  was  the  discoverv  of  the  north  foot- 
wall  ore  shoot  at  the  2,150  ft.  and  2,300 'ft.  levels.  It  is  ex- 
pected that  a  large  tonnage  of  ore,  well  above  the  average  gr.-»de 
of  the  mine,  will  be  available  for  the  mill  dnring  the  coming 
year  from  this  shoot,  as  developments  this  j'ear  indicate  that 
Ihis  shoot  is  improving  in  depth. 


Transvaal  Gold  Production. — The  production  of  gold  in 
April  amounted  to  /3, 046,045,  a  decrease  of  /i09,076  on  the 
same  month  of  last  year.  The  following  table  shows  the  monthly 
production  since  January,  1913  : — 


Month. 

1913- 

1914- 

»9'5. 

19  tf. 

1917. 

.9'«. 

£ 

£ 

£ 

£ 

£ 

£ 

January    . . 

3,353,116 

2,708,470 

3,037.058 

3.341,948 

3.324.418 

3,033.633 

February.. 

3.118.325 

2,66o,l8« 

2,872,406 

3,201,063 

3.063.976 

2.8  2,477 

March  .... 

3,358,050 

2,917,346 

3.202,514 

3,384,121 

3.343.363 

2,957.614 

April     .... 
May 

3,334,358 

2,904,924 

3,160,651 

3,205,643 

3, 155. "21 

3.046,045 

3.373,998 

3,059,340 

3,243.347 

3.303,377 

3,310,618 

lune 

3,173,382 

3,049.558 

8,208,224 

3,235,567 

3,227,101 

— 

July  

2,783,9'7 

3," 11, 398 

3,272,258 

3,232.891 

3,219,094 

_ 

August 

3,092,754 

3,024,037 

3,307,973 

3,318,116 

3.214,079 

— 

September 

2,999.686 

2,982,630 

3,299,423 

3,277,408 

3.135837 

— 

October  .. 

3,051,701 

3.116,754 

3,388,122 

3,365.642 

3. '91.279 

__ 

November 

2,860,788 

3,040,677 

3,317,534 

3.326,253 

3,070.426 

— 

December 

2,857,938 

2,952,755 

3,317,949 

3  289.705 

3.068.639 

— 

Total.. 

37,358,040 

33,588,075 

38,627,461 

39.484,934 

38.323.921 

".839,789 

Native  Labour  Returns. — For  the  first  time  since  November 
these  returns  show  a  decrease  in  the  labour  supply.  The  total 
shows  a  net  loss  of  309,  the  gold  mines  losing  563  labourers. 


Month. 


April,  1917    . .. 

\lay    

J  une   

July    

Aujiust 

September   . . . 

October 

November  . . . 
December  . . . 
January,   1918. 

February  

March    

April 


Natives 
on  Gold 
mines. 


1E5.975 
180,168 
175,727 
■71,653 
170,817 
"71,334 
170,331 
169,083 
172,740 
176,424 
181,066 
183.055 
lt^,492 


Native  i 
on  Coal 
mines. 


Natives 

on  Total 

Diamond       natives, 
mines. 


11.435 
11,432 
11,258 
li.3»i 
11,401 
It, 601 
11,841 
11,633 
11,695 
11,469 
11,243 
11,076 

11,322 


6,3'4 
5.805 
51369 
5,223 
5,028 
4,791 
4,620 
4.620 
4.393 
4.7'5 
4.825 
4.745 
4.753 


203,724 
I97.4t.5 
192.354 
188,257 
187,246 
187.726 
180,792 
185.336 
X89.028 
192.6C8 

197.  H4 
198,876 
'98,567 


Brakpan  Mines.— During  1917  there  were  crushed  677,500 
tons,  a  decrease  of  31,800  tons,  due  to  shortage  of  labour.  But 
the  yield  was  ;£7o,6g3  larger  at  ^1,168,455.  owing  to  the  grade 
of  ore  being  3s.  7d.  higher  at  34s.  6d.  per  ton.  Working  costs 
rose  by  only  is.  to  203.  3d.  per  ton,  leaving  a  working  profit 
of  14s.  3d.  per  ton  milled,  as  against  11s.  8d.  in  igio.  Both 
yield  and  profit  ratios  constitute  fresh  high  records  for  the 
mine.  The  total  working  profit  was  ;^46S,2oc>,  and  the  nett 
profit  was  ;^474,43i,  as  compared  with  ;^409',7i8.  The  divi- 
dend  has  been  raised  from  45  to  47^  per  cent,,  and  ^35,395 
carried  forward,  against  ^£'19,354.  At  the  end  of  December 
the  ore  reserves  stood  at  3,268,000  tons,  estimated  at  9.2  dwts. 
over  67  in.  sloping  width,  as  compared  with  3,054,000  tons, 
the  sloping  width  being  greater  by  about  5  in  ,  due  to  the 
greater  width  of  the  ore  developed  in  191 7.  In  the  latest 
calculations  of  the  ore  reserves  a  considerable  tonnage  pre- 
viously included  has  been  omitted  on  account  of  the  general 
rise  in  working  costs.  Progress  has  been  made  with  the  ex- 
tension of  the  reduction  plant,  raising  its  capacity  to  75.000 
tons  monthly  ;  but  under  present  conditions  it  is  unlikely  that 
the  full  capacity  will  be  attained  in  the  near  future. 

Springs  Mines. — The  report  for  1917  explains  that  pre- 
liminary crushing  began  in  January,  but  the  mine  did  not 
deliver  ore  to  the  mill  until  March.  There  were  crushed  during 
the  year  313,065  tons,  which  yielded  /,'6io,44i,  or  39s.  per  ton. 
Working  costs  averaged  22s.  id.  per  ton,  leaving  a  profit  of 
i6s.  I  id.  per  ton.  The  yield  was  adversely  influenced  by 
abnormal  circumstances  incidental  to  starting,  'while  costs  were 
swollen  by  various  abnormal  charges,  and  by  the  large  amount 
of  excess  development  accomplished  during  the  year.  The 
working  profit  was  ;^258,7ii,  and  the  nett  profit,  after  meeting 
debenture  interest,  was  ^(^214, 054.  Reserves  of  ore  are  esti- 
mated at  2,567,000  tons,  valued  at  9.8  dwts.  over  a  sloping 
width  of  58  in.,  an  increase  of  783,000  tons.  The  capacity  of 
the  reduction  plant  has  been  increased  from  30,000  to  40,000 
tt)n.s  monthly ;  on  this  capacity  the  ore  reserves  are  equal  to 
over  five  years'  supply. 

Witwatersrand  Deep.— Very  poor  results  were  obtained  by 
this  mine  in  1917,  owing  to  a  decrease  in  the  tonnage  milled  of 
74,750  tons,  and  an  increase  in  costs  of  3s  2d.  per  ton.  The 
yield  was  ^502,155,  against  ;fsg5,ii7.  the  recovery  being 
23s.  7d.,  against  23s.  lod.  per  ton.  Working  costs  averaged 
20s.  7d.,  leaving  a  working  profit  of  3s.  per  ton,  as  against 
6s.  5d.  in  igi6.  The  nett  profit  declined  from  ;fiC.o. 282  to 
;f64,496,  and  the  dividend  has  been  reduced  from  21^  to  5  per 
cent.,  but  the  carry-forward  is  raised  from  ;^8i.o25  tn  ;^99.356, 
the  bulk  of  which  is  represented  by  stores.  The  ore  reserves 
have  decreased  from  1,571,300  tons  to  1,383,359  tons,  valued  at 
5.66  dwts.  Practically  no  profit  was  earned  in  the  pecond  half 
of  the  year,  owing  to  the  increase  in  costs.  The  future  of  the 
mine  depends  largely  upon  the  values  to  be  disclosed  in  the  tai 
claims  remaining  to  be  explored. 

ToNGK.vH  Harbour  Tin  Dredging. — Thf  working  account  for 
the  twelve  months  ended  Septpmher  30  shows  a  credit  of 
;f77.266,  and  a  nett  profit  of  ;f67,923,  as  compared  with 
2^40,808.  Dredging  costs  averaged  ^.gt'^d.  per  cubic  yard, 
against  4.o26d.  last  year.  Four  dividends,  aggregating  25  per 
cent.  (5s.  per  share),  have  been  paid,  agaiiist  40  per  cent., 
leaving  a  balance  of  ^f 80. 302.  against  ^50,815.     L.ist   ye.nr  the 


May   i8,   1918. 


tTbe  3nve6tot6'  1Rev(ew 


485 


I 


directors  paid  ;£6o,ooo  in  dividends,  distributing  ;^2o,692  from 
reserves,  in  addition  to  the  full  profits  earned.  On  account 
of  the  past  year  only  ;/^J7,5oo  was  paid  in  dividends  out  of  the 
profit  of  /67,923,  but  since  the  closing  of  the  books  the  direc- 
tors have  distributed  a  further  3s.   per  share,  or  15  per  cent. 

GURUM  River  (Nigeria)  Tin. — The  report  for  the  year  to 
September  30  shows  a  profit  of  £(>,783,  and  the  debit  at  profit 
and  loss  has  been  reduced  from  ;^q,9o6  to  £i,(>cifi.  The  liabili- 
ties, which,  in  the  previous  balance-sheet,  amounted  to 
^'13,909,  were  reduced  during  the  year  to  £y,ooo,  and  this 
amount  has  since  been  settled  by  the  sale  at  par  (los.)  of  14,000 
of  the  unissued  shares.  During  the  year  142  tons  of  tin  con- 
centrate were  produced,  and  the  improvement  in  the  financial 
position  was  due  to  the  very  low  working  costa. 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 

Period. 


Arding  and  Hobbs. .  (Feb 

Do Prev. 

Atkinson's  Brewery   (Oct.) 

Do Prev. 

British    Ever-Ready     Co. 
(Mar.) 

Do Prev 

I  Bombay  Gas  Co.   . .  (Dec.) 

Do Prev 

I  Eastern  Bank (May) 

Do Prev 

[House  Property   and   In- 
vestment Co.  . .  (Mar.) 

Do Prev. 

iLiverpoolStorageCo.(Mar) 

Do Prev. 

iMackeson  and  Co.. .(Sept.) 

Do Prev. 

I  Melbourne  City  Properties! 

Trust     (Dec.) 

Do Prev 

iPuerto  Cabello  &  Valencia 

Railway  (Dec.) 

Do Prev. 

ISan  Lorenzo  Nitrate(May) 

Do Prev. 

IScottish   Mort.  and  Trust 

Co (Mar.) 

Do Prev. 

Texas  Land  and  Mort.  Co. 
(Mar.) 

Do Prev. 

rhos.  Owen  &  Co... (Mar.) 
Do Prev 


Gross 
Profit. 


Nett 
Profit. 


100,900 

92.830 

143.850 

108,110 

72,330 
75.380 


80,070 
66,860 

17,670 
16,060 

50,000 
40,300 
16,900 
24,190 

11,140 
11.500 

64,080 
67,310 

54.680 
69,170! 


22,610 
18,490 
78,090 
27,360 

34,680 
28.650 
30.530 
28,980 
77.910 
60.540 

16.850 
16.730 
16,300 
13.500 
14.230 
11.640 

3.290 
*750 

10,220 
12,250 
10,060 
1 1  ,goo 

9,420 
9.990 

24.080 
24.490 
43.340 
38,660 


Total 
Re- 


£ 
25,000 
15,000 
25.000 


25.000 
22.500 
26,170 
24.920 
90,000 
70,000 

46,170 
45.780 


24.000 
21,000 


5.990 

3.440 

24,000 

24.000 

27,000 
26,000 

170.000 
170,000 
187,980 
159.720 


% 


Carried 

For- 
ward. 


'i 


6.050 

2.900 

18,610 

16,930 

15.910 

9.540 


5.230 
4.440 


7.970 
4.470 

5,120 

8,170 

16,340 

15.410 


Loss. 


AnsAvers  to  Coppespondents. 

*.*  A  Key  to  these  Anawers  will  be  posted  early 
each  week  for  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  tor  six  months,  or 
Gs.  3d.  tor  three  months. 

Deposits  against  future  queries  may  be  lodged 
with  the  Publisher. 

Sevac. — Generally,  quotations  depend  on  the  course  of  prices 
for  the  stuff.  We  see  small  prospect  of  that  showing  an  im- 
provement in  the  near  future.  Therefore,  the  tendency  is 
likely  to  be  downward.  That  said,  here,  in  brief,  is  the  posi- 
tion of  each  company  named,  (i)  Better  sell  this.  (2)  A  good 
company  doing  well.  May  be  worth  keeping.  (3)  Also  a  strong 
company,  although  probably  has  seen  its  best  for  the  present. 
(4)   Immediate  prospects  unfavourable.     (5)  Ditto. 

Jabez. — These  may  go  up,  but  they  are  not  an  investment. 

P.  J. — Both  are  a  pure  gamble  at  present,  a  bet  on  our 
success  in  the  war.     If  you  feel  sure  of  that,  by  all  means  buy. 

G.  W.  T. — (i)  The  immediate  prospects  are  not  very  en- 
couraging. High  costs  and  restricted  sales  are  against  the 
market.  It  might  be  prudent  to  reduce  See  remarks  else- 
where. (2)  Doing  wonderfully  well,  and  should  continue  pro- 
sperous. Might  be  bought  for  the  yield.  (3)  Look  like  going 
higher  still,  but  should  not  recommend  as  a  permanent  invest- 
ment. (4)  Business  profitable,  carefully  managed.  Price  looks 
high,   but  they  give  a  tempting  return. 

M.  B.    R.— Quite  fair. 

C.  H.  H. — Dividends  are  paid  at  the  exchange  of  the  day,  so 
their  yield  is  not  so  high  as  it  looks.  We  hope  they  will  re- 
cover after  the  war.     Only  English  tax  is  deducted. 

Rover. — (i)   We  think   not;   the    security    is    quite   good.     (2) 
Yes,  the  conip\ny  is  strong,  and  must  be  doing  well. 
^_B    D.  T.  K. — We  cannot  advise  selling,  although  prospects  of  a 
■■fcecovery  are  not  great.     There  is  always  a   speculative  chance 
Hi^r  them. 

L.  W.  S. — There  is  no  hurry,  as  market  seems  likely  to 
droop. 

Start. — Not  now.  Some  arrangement  will,  no  doubt,  be  made 
with  the  Government.     Negotiations  are  proceeding. 


letterg  to  the  EMtor. 

POST    OFFICE   "  HOARY    INIQUITIES." 

Sir, — You  are  right  when,  in  your  issue  of  nth  inst.,  yau 
ask,  "  How  much  of  the  increased  cost  of  working  the  postal 
business  is  due  to  gratuitous  services  imposed  upon  the  Depart- 
ment? " 

My  father,  the  postal  reformer,  advocated  the  total  abolition 
o{  the  franking  privilege—a  hoary  iniquity — ^but  vested  in- 
terests and  (said  Punch)  "  pig-headed  obstruction "  were  too- 
potent  even  for  Rowland  Hill's  strong  resolve;  and  during  the 
15  years  of  survival  after  his  retirement  from  the  Post  Office 
in  1864  he  often  deplored  the  steady  increase  of  that  essentially 
undemocratic  practice  which  my  brother,  now  also  dead, 
assured  me  went  on  growiijg,  and  still,  I  believe,  gains  iu 
volume. 

To  take  but  a  single  instance.  The  late  Duke  of  Cambridge,, 
while  titular  head  of  the  British  Army,  was  said  to  enjoy  the 
franking  privilege,  "  because  he  was  the  Commander-in-Chief." 
Why  the  "  because"'  ?    It  would  be  hard  to  say. 

In  the  earlier  edition  of  my  father's  pamphlet  on  "  Postal 
Reform  "  (January,  1837)  he  advocated  a  charge  of  one  penny 
an  ounce  on  letters,  but  Mr.  Spring-Rice,  then  Chancellor  of 
the  Exchequer,  unto  whom  this  earlier  edition  was  privately 
submitted,  took  alarm  at  so  revolutionary  a  suggestion,  and,  in 
deference  to  his  kindly  reception  of  the  plan,  the  penny  charge 
was  limited  to  half  an  ounce,  the  original  proposal  being  post- 
poned for  many  years. 

It  may  be  well  to  add  that  prepayment  and  uniformity  of 
rates  of  postage  throughout  the  United  Kingdom  were  the  main 
features  of  my  father's  plan — entirely  novel  features,  too — and 
that,  owing  to  the  variety  and  consequent  perplexity  of  the 
charges  levied  under  the  old  system,  which  the  practised  officials 
only  were  capable  of  calculating,  the  recipient,  not  the  sender, 
of  a  letter  paid  the  postage  on  delivery,  and,  of  course,  neces- 
sarily in  coin  of  the  realm — a  fact  which,  were  the  public  better 
acquainted  than  it  is  with  postal  history,  should  suflSce  to  shatter 
belief  in  the  flimsy  claims  occasionally  met  with  to  priority  of 
invention  of  the  postage-stamp  in  the  dark  ages  which  preceded 
the  happy  days  of  penny  postage — now,  as  we  are  told,  to  be. 
"abolished." 

To  the  evil  effect  of  the  raised  rates  bound  to  take  place,  to- 
which  you  make  allusion,  I  would  mention  another  as  likely 
to  eventuate,  namely,  a  partial  revival  of  what,  under  the  old 
system,  used  to  be  called  "  letter-smuggling,"  a  practice  which, 
stimulated  by  the  gross  injustice  of  that  system,  flourished 
apace. 

Yours  faithfully, 

Eleanor  C.  Smyth. 

London,  May  14,  191S. 

*»*  We  sympathise  with  Mrs.  Smyth's  feelings,  and  pro- 
foundly regret  the  disappearance  of  the  "penny  post"  estab- 
lished by  her  father,  Sir  Rowland  Hill.  And  we  also  think  it 
a  pity  that  the  Postmaster-General  has  not  thought  it  expedient 
to  imitate  Mr.  Spring-Rice,  and  changed  the  weight,  but  kept 
the  coin. — Ed. 

M.   GUYOT'S   GUARANTEES   OF   PEACE. 

My  Dear  Friend, — I  thank  you  very  much  for  the  benevolent 
notice  which  you  were  so  kind  as  to  publish  in  the  Investors' 
Review  on  my  book,  "  Les  Garanties  de  la  Paix,  T.  I.,  Legons 
du  Passe."  But  you  say  you  are  not  sure  that  I  had  got  hold 
of  the  entire  truth  when  "  I  say  that  the  most  solid  guarantee 
of  peace  is  the  intellectual  capacity  of  men.  .  .  .  Will  intel- 
lectual clear-sightedness  and  reason  suffice  to  woo  Germans 
from  the  mineral  deposits  belonging  to  France?     .     .     ." 

The  argument  is  for  my  thesis.  You  can  see  in  my  book,, 
"Les  Causes  et  les  Consequences  de  la  Guerre"  (II.  Partie, 
ch.  X.,  p.  229),  the  list  of  the  iron  mines  which  the  Germans 
owned  in  France ;  Frenchmen  also  owned  coal  mines  in  West- 
phalia. 

Compare  now  the  value  of  all  the  iron  mines  of  the  Bassin 
de  Briey  and  the  cost  of  the  war,  and  .vou  will  be  convinced  that 
the  acquisition  by  war  was  a  stupid  conception  when  their 
acquisition  by  bargain  was  very  easy. 

Men  ought  to  learn  to  make  the  balance  between  the  costs 
and  profits  •  and  then  war,  which  is  the  collective  form  of 
robbery,  will  disappear. — Yours  very  truly, 

Yv^s   GUYOT. 

Paris,  May  11,   1918. 

*»*  Now  we  comprehend.  M.  Guyot  is  right.  But  can  we  hope 
ever  tc  convince  the  Germans  that  thieving  is  not  profitable?- 
Why,  they  are  now  stealing  from  each  other. — Ed. 


NEW    SOUTH    WALES— A    WELCOME    DISCLAIMER. 

Dear  Sir, — In  your  issue  of  the  nth  inst.  you  point  out  with 
regret  the  large  sum  of  money  required  for  Australia  for  pur- 
poses other  than  the  war  during  this  year,  amounting  to  nearly 
;^i6,ooo,ooo,  and  you  state,  incidentally,  that  this  total  includes 
the  sum  of  ^^5,000,000  which  New  South  Wales  is  arranging  to 
procure  on  its  own  account. 

I  desire  to  state  that  I  have  no  knowledge  of  any  such 
arrangement  and  I  shall  be  glad  if  you  will  say  what  is  your 
authority  for  this  statement.— Yours  faithfully, 

Sydney  House,  Cockspur  Street,  S.W.  i, 
May  14,   1918. 

C.  G.  Wade. 

*»*  We  took  the  figure  from  the  Australasian  Insurance  and' 
Banking  Record  of  February  21,   1918,   p.   88. — Ed. 


486 


Zbc  investors'  1Review4 


May   i8,   1918. 


Tea,  Oil  and   Rubber. 

People    who    vigorously    support    the   artificial    restriction   ot 
rubber   output  can   always    argue   quite    plausibly,   when    it    is 
pointed  out  that  the  scheme,  so  far,  has  not  been  a  conspicuous 
success    in    maintaining    prices,    that   things   would   have    been 
much    worse   under   a    laissez  jaire  policy.      In   the    nature   of 
things  it  is  impossible  to  supply  a  conclusive  answer  to  that  line 
of  reasoning,  but  there  is  at  least  some  ground  for  holding  the 
other  view,  that,  but  for  the  uncertainty  and  suspicion  caused  by 
the  volte  face  of  the  leaders  of  the   industry,  the  market  might 
never  have  got  into  the  demoralised  condition  which  is  now  so 
painfully  evident.     Last  week's  arrivals  amounted  to  620  tons, 
while  the  deliveries  were  1,510  tons,  and  although  the  stwks  are 
still   15,980  tons,  against  9,780  tons  last  year,   the  discrepancy 
might  have   been  expected   to   steady  the  market,  especially    as 
the  20  per  cent,  restriction  is  becoming  more  and  more  visible 
in  the  monthly  outputs.     Instead  of  that  the   price  of    standard 
cr«pe  fell   to   2s.    3d.,   and   buyers  are   not  tumbling   over   each 
other  to  get  it  at  that  figure.     It  is  reported  that  imports   into 
the  United  States  will  be  limited  to  100,000  tons,  which   repre- 
sents a  reduction  of  about  30  per  cent.,  and  as  the  States  are  by 
far  the  largest  consumers,   this  immediately  off-sets,   so   far  as 
supply   and   demand   are  concerned,   the  curtailment  of  output. 
But  whether   or  not  the  price  can  be  maintained  near  the  level 
which  the  Rubber   Growers'    Association  aimed  at,    it   must  be- 
perfectly  obvious  that  the  producers  of  70  per  cent,  of  the  com- 
modity who  have  not  joined  the  scheme  must  benefit  at  the  ex 
pense  of  those  who  have,  and  we  have  never  known  of   a  casu 
where  an  arrangement   of  that  kind   did  any    good   or  created 
anything  but  heartburnings. 

ANGL0-M.4LAV  Rubber  Co.,  Ltd.— Year  to  December  31  : 
Capital,  /i5o,ooo  in  2s.  shares;  reserve  fund,  ^12,500.  Output. 
1,720,000  lbs.,  a  decrease  of  42,000  lbs.,  although  the  acreage 
in  bearing  shows  an  increase  of  205  acres  at  3,785  ^"^^\ 
Average  price  obtained,  2s.  5.75(1.,  against  2s.  5.47".,  but 
all-in  cost  increased  from  11.23d.  to  is.  o.85d.,  including  2d. 
per  lb.  for  war  ris]5  insurance.  F.o.b.  cost  was  only  a  tntlc 
higher  at  8.2id.  Gross  receipts  were  ;f6,ooo  less  at  ^^207.80?' 
and  after  writing  off  £6.3(10  for  depreciation  the  nett  profit  is 
^10,000   down   at  ^123,980,   but  ;^6,ooo  more  was  brought   in. 


Final  dividend,  35  per  cent.,  making  65  per  cent,  for  the  year, 
against  85  per  cent.,  but  ;^ 20,000  more  at  ;^5o,foo  is  carried 
forward.  Output  for  the  current  year  is  estimated  at 
1,410,000  lbs.  Practicallj'  the  whole  planted  area  of  4,450  acres 
will  be  in  bearing  next  year,  and  output  can  be  considerably 
increased  when  desired.  Over  j,ooo  acres  are  ten  years  old  and 
upwards. 

I'ATALi.NG  Rliiuf.b  Estatks  Syndicatk,  Ltd. — Year  to  Decem- 
ber 31  :  Capital,  ;^22,5oo  in  2S.  shares;  reserve  fund,  ^^25,500. 
Output,  730,450  lbs.,  increase,  10,000  lbs.;  average  price. 
2s.  6.i8d.,  against  2s.  7.i5d.  all-in  cost,  including  2.13d.  for 
war  risk  insurance,  is.  o.i4d.  against  10.13d.  Gross  receipt^. 
/'88,54o,  decrease,  ;^6,ooo  ;  nett  profit,  ;f  59,500,  decrease,  ^^7, 000; 
final  dividend,  130  per  cent.,  making  250  per  cent,  for  the 
year,  against  300  per  cent.  For  the  current  year  the  output  i~ 
estimated  at  584,000  lbs.,  but  as  1,420  acres  out  of  1,835  plau'el 
are  over  ten  years  old,  a  large  increase  can  be  obtained  whenever 
.de^ed.  The  company  has  the  advantage  of  an  extremely 
modest  capital,  like  most  of  the  pioneers  of  the  industry,  and 
it  has  been  excellently  managed.    • 


NOW     READY 


Pnblished  May  15.  1918.  9th  Year. 

Contains  all  the  latest  in'ormation  up  to  within  a  few  days  of  publication. 

THE 

OIL  &  PETROLEUM 
MANUAL  1918. 

By    WALTER     R.    SKINNER, 

Editor  and  Publisher,  "  Mining  Manual  and  Mining  Year  Book." 
Established  18S7. 

PRICE    4/-   NET. 

Post  Free  (Inland),  4/6.      Post  Free  (Abroad),  5/- 

300  pages.     In  Demy  8vo,  bound  in  RED  Cloth. 


The  Standard  Reference  Book  on  Oil 

Contains  Complete  and  Up-to-Date 
PARTICULARS      OF     500      COMPANIES, 

Producers.  Refiners,  Carriers  (pipe  and  steamship),  and  Oil  Finance  Companies 
in  all  parts  of  the  World. 
Special    attantlon    has    been    given    to    the 
principal  AMERICAN  A  FOREIGN  Conipanies. 
Lists  are  also  given  of  the  Officrials  connected  with  the 
Companies,  and  comprise  1362  Directors,  255  Secretaries, 
12S  Consulting    Engineers,  Managers,  Agents,  etc.,  Ctieir 
names  and  addresses  and  company  connections. 
The  particulars  of  each  Company  include  the  Directors  and  other 
ofiicUls,  date  established,  location  of  property,  purchase  coiisidera'ion, 
number  of  wells  sunk,  production  and  description  of  wo  it  in  progress, 
capital,  if  offered  to  the  public,  calls,  dividends,  and  financial  posi:ion  as 
disclosed  by  accounts,  also  latest  price  of  shares. 

The  work  als3  contains  a  Rlossary  of  terms  and  table  showing  n  ontbly 
production  for  th  ■  year  ending  March  31,  1918,  of  principal  producing 
Companies  and  World's  Petroleum  Production  since  1857 


To  be  obtained  from  all  Bcoksellers,  or 
direct     from     the     E   itor    and     Pubhsher, 

Walter  r.  Skinner. 

11-12,   Clement's    L>ane,    London,    E.G.  4. 

Tel  Address — "  Capitalist,  London."      'Phone  — Avenue  1323. 


DIVIDENDS    ANNOUNCED. 


Anglo-Sumatra  Rubber  Co. — Interim  for  year  ending  May  31, 
i(ji8,  of  10  per  cent.,  actual,  less  tax,  payable  May  31,  same  as 
a  year  ago. 

American  Freehold-Land  Mortage  Co.  of  Loniion. — ^fbr  year 
ended  March  31  of  10  per  cent.  (5  per  cent,  of  which  was 
paid  in  December  last),  and  a  bonus  of  5  per  cent.,  making  15 
per  cent,  for  year. 

Anglo-Portuguese  Telephone  Co. — -Final  3  per  cent.,  less  tax, 
for  1917,  making  0  per  cent.,  the  same  as  for   1916. 

Broken  Hill  Proprietary  lilock  10  Co. — No.  113  of  is.  per 
share,  less  tax,  payable  June  5,  the  same  as  a  year  ago. 

British-American  Tobacco  Co. — Interim  6  per  cent,  for 
1918-19,  on  the  issued  ord.  shares,  free  of  British  income-tax, 
payable   June   29. 

Beyer,  Peacock,  and  Co. — On  ordinary  shares  for  1917  at 
rate  of  10  per  cent,  per  annum,  less  tax,  same  as  for  1916. 

Central  Tea  Co.  of  Ceylon. — Interim  of  2j4  per  cent.,  less 
fax,  on  ord.  shares  for  year  ending  June  30,  1918,  against  5 
per  cent. 

Cassel  Cyanide  Co. — Interim  of  is.  per  share,  less  tax,  pay 
able  June  1. 

Chargola  Tea. — Final  at  rate  of  7  per  cent,  per  annum,  less 
tax,  for  year  ended  Nov.  30.  on  the  pref.  shares. 

Dorman,  Long  and  Co.— Interim  of  4  per  cent.,  free  of  tax, 
for  half-year  ended   March  31. 

Government  and  fjeneral  Investment  Co. — Interim  of  4  per 
cent,  on  deferred  stock  for  current  financial  year,  payable 
June  I. 

Great  Northern  Telegraph  Co. — Total  dividend  and  bonus 
of  22  per  cent,  for  191 7  (against  24  per  cent.),  including  the 
5    per  cent,   already  paid. 

Guardian  Assurance  Co. — On  ordinary  shares  of  4s.  per 
share,  to  be  paid  June  2(),  together  with  preference  dividend 
of  2S.  per  .share,  both  subject  to  tax,  and  payable  June  29. 

Golden  Horse  Shoe  Kstates  Co. — First  interim  for  191S  <<i 
2S.  6d.  per  share,  free  of  tax,  payable  Jnne  15,  the  same  as  a 
year  ago. 

Loders  and  Nucoline. — interim  on  ordinary   shares  of  75  per 
cent,  for  year  to  August  31,   1918,  less  tax,  at  5s.  jd.  in  the  £. 
Liverpool   Warehousing    Co. — Interim  of   6d.   per   share,   less 
tax. 

Lumut  Rubber  Estates. — Interim  for  year  ending  Septem- 
ber 30  of  5  per  cent,  (actual),  less  tax,  payable  July  1,  agaimst 
7^  per  cent. 

Mount  Lyell  Mining  and  Railway  Co. — Interiin  (No.  25)  of 
51S.  3d.  per  share,  less  tax,  payable  June  28,  the  same  as  a 
year  ago. 

Madras  ,ind  Southern  Mahratt.T  Railway  Co.— Interim  of 
£■3  per  cent.,  less  Fnglish  income-tax  M  5s.  ojd.  in  the  £,  pay- 
able on  Julj'  I. 

Meredith  and  Drew. — Final  at  rate  of  6  per  cent,  per  annum, 
making  6  per  cent,   for  the  year ;  forward,  ;f7,799. 

North  Broken  Hill. — No.  48  of  2s.  per  share,  less  tax,  payable 
(in  June  28. 

Nobel's  Explosives  Co. — .\t  rate  of  15  per  cent.,  free  of  tax,  for 
year  1917,  m.-iking  a  total  of  ^ojier  cent.,  the  s;>me   as  for  1916. 

South  Australian  Co. — Final  30s.  per  share,  to  be  paid  on 
July  15,  togethei  with  a  bonus  of  20s.  per  share,  both  free  of 
tax,  the  same  as  a  year  ago. 

Strand  Hotel.— Interim  at  mte  of  7  per  cent,  per  annum  on 
the  participating  preferred  ordinarj'  shares  for  six  months  ended 
March  31. 

Soiith  African  Lighting  Association. — Final  7  per  cent,  for 
half-year  to  Dec.  31,  less  tax,  making  10  per  cent,  for  1917, 
compared  with  9  per  cent,  for  1916. 

Trustees  Corporation. — On  the  preference  stock  at  the  rate  of 
4I  per  cent,  per  annum,  less  tax,  for  half-year  to  May  31. 
payable  on  June  i. 


BOOKS    RECEIVED. 


The  Oil  and  PelroUum  Manual,  191S.  By  Walter  R.  Skinner. 
Price  4s.  nett.  n-12,  Clement's  l.ane,  Lombard  Street, 
London,  E.C.   4. 


Mav   j8,   191S. 


XEbe  Jnvestoca'  IReview* 


487 


Wnat    Balance    Sheets   Tell. 


Alliance  Trust  Co.,  Ltd. — This  flourishing  Dundee  company 
has,  of  course,  suffered  from  increased  taxation.  The 
revenue  for  the  year  to  January  31  was  /.7,ooo  smaller  at 
^271,000,  while  taxes  absorbed  ^14,000  more  at  ^76,200,  but 
a  little  less  had  to  be  paid  as  interest  on  borrowed  money,  and 
the  nett  profit  of  ;^i26,70o  is  ;fi8,ooo  down.  flowcTer,  there 
is  no  difficulty  in  repeating  the  handsome  dividend  of  19  pel 
cent,  on  the  ordinary  stock,  but  ^^2^,000,  against  ^£'40,000,  ia 
placed  to  contingent  fund,  and  the  balance  forward  is  reduced 
/■i,ooo  to  ^10,400.  During  the  year  the  directors  further  in- 
creased the  comi«iny"s  holdings  in  .securities  of  the  British 
Government  and  its  Allies,  and,  including  transactions  since 
the  books  closed,  these  investments  aggregate  ;^"i, 545,000,  the 
balance  still  held  being  ^^852, 000,  an  increase  of  ^^202, 000, 
mainly  composed  of  War  Loan  and  National  War  Bonds.  The 
present  rate  for  debentures  is  53  per  cent.,  and  the  average 
paid  by  the  company  for  the  past  year  was  4.31  per  annum, 
while  the  corresponding  figures  last  time  were  5  and  4.09  per 
cent,  respectively. 

Ros.VRio  NiTR.ATK  Ccr.,  Ltd. — For  the  year  to  September  30 
the  gross  profit  amounted  to  ;f  148, 870,  an  increase  of  _f3i,ooo, 
but  income-ta.x  absorbed  more,  and  /■25,ooo  is  written  off  for 
exhaustion  of  grounds  and  depreciation  of  plant,  so  that  the 
nett  profit  is  only  a  trifle  higher  at  ^81,680.  The  amount 
brought  in  was  ;^o.ooo  less,  but  the  dividend  is  raised  from 
15  per  cent,  to  17J4,  and  the  balance  forward  is  cut  in  half 
at  /22,8oo.  No  details  are  given  as  to  production,  and  no 
estimate  is  furnished  with  regard  to  the  probable  life  of  the 
property,  which  is  now  valued  at  ^55o,o(X).  That  is  ^150,000 
less  than  the  amount  two  years  ago,  and  we  are  glad  that  the 
question  of  amortisation  is  at  last  receiving  proper  attention. 

S.\L.-\R  DEL  Carmkn  Xitrate  Svkdic.ate,  LTD.^I^ast  year  saw 
a  substantial  improvement  in  the  fortunes  of  this  company, 
partly  o>ving  to  the  acquisition  of  new  grounds  from  which 
supplies  were  drawn  during  the  eight  months  May  to  December. 
Production  amounted  to  616,180  quintals,  against  380,000 
quintals  in  1916,  and  the  gross  profit  amounted  to  ^66,000,  an 
increase  of  ;^45,3oo.  Including  loss  on  realisation  of  invest- 
ments (^5,900)  and  value  of  stocks  in  Germany  (^2,800)  written 
off  expenses  were  /^i  1,000  higher.  To  pay  for  the  new  ground 
the  capital  was  doubled  during  the  year,  and  now  stands  at 
;^22o,ooo.  An  interim  dividend  of  20  per  cent,  was  paid  on 
the  original  capital  and  a  final  dividend  of  15  per  cent,  is 
declared  on  the  total  existing  capital  (as  against  15  per  cent, 
in  all  last  year),  and  after  placing  ^'10,000  to  reserve,  as 
against  ^^7,500  written  off  investments  a  year  ago,  the  carry 
forward  'is  doubled  at  ^^2,660.  It  is  stated  that  the  new 
grounds   are   yielding   satisfactory   results. 

Anglo-Contikent.^l  Guano  Works,  Ltd. — This  was  a 
German  controlled  concern  which  was  acquired  by  the  Rhondda 
group  from  the  Public  Trustee  as  from  December  31,  1915,  and 
the  first  report  has  recently  made  its  appearance.  The  purchase 
consideration  was  ;f325,ooo,  all  of  which  has  been  discharged. 
For  1916  the  profit  was  ^28,500  and  for  191 7  it  was  ^37,300, 
and  after  paying  interest  on  the  purchase  price  the  distributable 
profits  amounted  to  ;if65,8oo.  Preference  dividends  absorb 
^5,600,  and  the  ^100,000  ordinary  shares  receive  ;^46,5oo, 
leaving  ^13,670  to  be  carried  forward  subject  to  excess  profits 
duty,  if  an^.  Land,  buildings,  plant,  &c.,  .stand  at  ;£'i7i,25o, 
stocks  at  /.  133,200,  debtors  at  ,^54,000,  and  cash  in  hand  at 
I  jf  18,130.  It  seems  to  be  a  highly  profitable  business,  and  its 
[  <:areer   will  be  watched  with  exceptional    interest. 

Brazill^n  Warrant  Co.,  Ltd. — Trading  profits  last  year  at 
£gS,j4o  were  practically  the  same  as  in  1916,  and  while 
administration  expenses  were  higher  less  had  to  be  set  aside 
as  income-tax  reserve,  and  the  nett  profit  comes  out  ^2,000  to 
i  the  good  at  ;£'75,73o,  while  ;^2i,ooo  more  was  brought  forward. 
A  year  ago  the  .balance  of  goodwill  (;^2o,ooo)  was  written  off, 
and  this  time  the  reserve  gets  ;^io,ooo,  raising  it  to  ^160.000. 
after  which  the  dividend  is  doubled  at  5  per  cent,  and  ^12,700 
more  at  ;^58,ooo  remains  to  be  carried  forward.  During  the 
year  200,000  ordinary  shares  of  los.  each  were  issued,  and 
creditors  have  increased  ;f23o,ooo  to  ,£598,000,  so  that  we  find 
investments  up  ^£180,000  at  £'^6y,ooo  and  debtors  ;rfi30,ooo 
higher  at  ^^892, 000.  Bilk  and  remittances  in  transit  are 
jf  138,000  against  ^21,400,  but  stocks  are  ^£40,000  lower  at 
;fi8o,ooo.  The  company,  of  course,  has  benefited  by  the  im- 
provement in  the  exchange,  which  was  i3f|d.  at  the  end  of 
the  year,  as  compared  with  i2^d.  at  the  end  of  1916. 

Sir  Elkanah  Ar.mitack  and  Sons,  Ltd. — A  .smart  recovery  is 
shown  in  the  results  of  this  cotton  spinning  firm  for  the  year  to 
March  31.  Profits  were  nearly  doubled  at  /'5i,3oo,  after  pro- 
viding for  e.xcess  duty,  and  ^3,000  more  was  brought  in.  Con- 
sequently the  directors  are  able  to  place  ;f  15,000  to  a  suspense 
outlay  account,  and,  in  addition  to  the  tax-free  oividend  of 
10  per  cent.,  they  propose  to  pay  a  bonus  of  5  per  cent.,  less 
tax.  There  then  remains  ;f2,4oo  more  at  ;£i8,ooo  to  be  carried 
■forward.  Except  that  stocks  have  increased  ;£64,ooo  to 
;£i72,8oo,   nothing   in  the  balance-sheet  calls    for  mention. 

W.  P.  LowRiE  and  Co.,  Ltd. — In  the  year  to  March  31  this 
Scotch  distillery  company  made  a  profit  of  ;£i25,5oo,  and  after 
placing  ;£io,ooo  to  reserve  (raising  it  to  ;£i65,oooj_  the  directors 
can  repeat  the  dividend  of  25  per  cent,  for  the  year,  leaving  a 
bagatelle  of  ^^109,000  to  be  carried  forward.  That  is  ^^7,000 
more  than  was  brought  into  the  accounts,  but  when  the  public 


have  to  pay  many  scores -of  times  the  cost  price  of  their  drops 
of  whisky,  the  modesty  of  the  dividend  astonishes  us.  Who 
gets  the  .stuff?  The  proprietary  brand  users,  who  pay  2s.  a 
gallon  and  charge  9s.  or  more  a  bottle?  It  is  a  beatitiful  game, 
and  .so  helpful  to  the  temperance  cause  ! 

Aliiv  I'NiTED  Carbide  Factories,  Ltd. — For  the  year  to 
June  30  last  the  nett  profits  were  only  ;;^6,4io,  as  compared  with 
Z't5i'3"  for  tile  previous  12  months,  and  were  ^^60,470  for 
1914-15.  For  the  latter  year  the  gross  trading  profit  was 
^76,600,  and  in  the  past  12  months  it  was  only  ;£8io,  but  more 
was  received  as  dividend  on  investments.  This  almost  total 
collapse  in  trading  results  is  attributed  to  loss  on  exchange  with 
Norway,  the  difficulty  in  maintaining  stocks  of  raw  material, 
the  increasing  cost  of  labour,  high  freights,  and  the  existence 
of  a  contract  for  the  delivery  of  carbide  at  pre-war  price.  No 
doubt  these  are  formidable  obstacles  in  the  way  of  profitable 
working,  but  we  are  afraid  the  explanations  given  will  not 
entirely  satisfy  the  shareholders,  and  for  our  own  part  we 
do  not  regard  them  as  quite  adequate.  Anyhow,  after  paying 
the  preference  dividend  the  balance  forward  is  increased  by 
^3,000  to  ^14,130,  and  ;£642,ooo  of  ordinary  capital  gets  no 
return    against   5    per    cent,    for   the    two   previous    years. 

Jsn'EHiAL  Direct  Line,  Ltd. — It  is  announced  that  the  de- 
bentures having  all  been  redeemed  and  cancelled,  and  the 
company  converted  into  a  private  one,  the  usual  issue  of  the 
annual  report  and  balance-slieet  will  be  discontinued.  We  are 
informed,  however,  that  the  profits  for  last  year  were  ;£64,500, 
a  decrease  of  £_S'5°°>  ''"t  the  dividend  of  10  per  cent,  is  re- 
peated. The  reserve  fund  again  gets  /^2o,ooo,  and  the  carry- 
forward is  increased  by  ;£i5,ooo  to  ^'49,000.  The  company 
seems  to  have  been  more  successful  than  most  of  its  neighbours 
under    control   conditions. 


In  the  British  Bank  of  South  America's  latest  circular  there 
are  some  interesting  facts  about  the  position  and  progress  of 
commercial  and  financial  affairs  in  Brazil  and  Argentina.  In 
both  these  countries  the  effects  of  the  war  are  making  themselves 
felt  in  many  ways,  and  not  least  in  the  increased  cost  of 
living  and  of  labour.  Wages  have  risen  in  the  State  of  Sao 
Paulo  (Brazil)  by  20  to  25  per  cent.,  and  labour  is  scarce.  Com- 
plaints are  heard  of  the  very  high  cost  of  the  smaller  agricul- 
tural implements,  such  as  hoes,  axes,  shovels,  &c.,  and  the  bulk 
of  the  supplies  seem  to  be  drawn  from  the  United  States,  but 
Japan  is  cutting  into  the  trade,  and  recently  the  Japanese 
steamer  brought  a  large  quantity  of  sulphur  and  an  amount  of 
Japanese  dried  cod  fish  to  Brazil.  Doubtless  behind  the  smoke 
and  din  of  battle  many  changes  are  taking  place  in  the  trade 
intercourse  of  the  nations  not  actually  at  war.  As  for  Brazilian 
finance,  the  position  seems  to  be  tolerably  satisfactory,  the  total 
revenue  of  the  Republic  of  Brazil  for  the  current  year  being 
officially  put  at  125,968,357  milreis  gold  and  448,413,000  milreis 
paper.  The  expenditure  is  given  at  84,456,084  milreis  gold  and 
461,958,950  milreis  paper,  so  that  a  surplus  is  expected.  The 
Budget  law  provides  for  bounties  to  .shipbuilders.  They  call  it 
"  premium,"  and  the  scale  is  on  ships  with  a  capacity  from 
So  to  1,500  tons  100  milreis  per  ton.  Above  1,500  up  to  10,000 
tons  it  is  150  milreis  per  ton.  These  premiums  are  to  be 
guaranteed  to  shipbuilding  concerns  for  a  period  not  exceeding 
15  years,  provided  the  builder  agrees  to  con.struct  within  that 
time  no  less  than  20  ships  of  more  than  80  tons  each,  and  agrees 
not  to  dispose  of  them  without  having  obtained  the  consent  of 
the  Ck>vernment,  and  paid  back  the  premiums  received.  A 
loan  lip  to  a  total  of  60,000,000  milreis  for  a  period  of  20  years 
at  5  per  cent,  may  be  made  to  provide  individuals  or  companies 
to  furnish  means  for  the  construction  of  the  first  20  sugar  fac- 
tories of  the  most  modern  type  known.  The  loans  are  subject 
to  annual  amortisation,  and  .secured  by  first  mortgage  on  the 
factories  and  accessories,  ft  is  also  provided  that  premiums 
shall  be'  given  to  encourage  the  planting  of  rubber  in  the 
Amazon  district  and  the  establishment  of  factories  at  Para  and 
Manaos  for  the  manufacture  of  rubber  articles.  Out  of  the 
loans,  too,  it  is  designed  to  set  up  machinery  for  pressing  raw 
cotton  at  the  principal  railroad  .stations  in  exporting  States 
and  at  other  inland  points  where  considered  necessary.  Money 
will  also  be  advanced  to  assist  small  planters  to  obtain  machines 
for  the  construction  of  cotton  seed  and  hand-presses  for  the  ex- 
traction of  the  oil.  Thus  large  schemes  of  expansion  are  in 
contemplation  by  the  go-ahead  Government  of  Brazil. 


NOTICE. 


Owing  to  the  restrictions  placed 
upon  paper  supplies  we  cannot 
provide  newsagents  with  copies  for 
chance  sales.  Would  regular  readers  of 
the  "  Investors'  Review,"  therefore, 
kindly  place  an  order  with  their  local 
newsagents  or  subscribe  direct  to  the 
publisher? 


488 


Zbc  5nve6tor6'  IReview. 


May  i8,  1918. 


COMPANY   MEETINGS. 


LIVERPOOL   AND    LONDON    AND    GLOBE 
INSURANCE    CO.,    LIMITED. 

EIGHTY-SECOND  ANNUAL  MEETING. 

The  eighty-second  annual  general  meeting  of  members  of  the 
company  was  held  at  Liverpool,  on  Tuesday,  Colonel  J.  P. 
Reynolds,  D.S.O.,  the  chairman,  presiding  over  a  numerous 
attendance. 

The  Chairman  moved  the  adoption  of  the  report  and  ac- 
counts. Having  first  referred  to  the  death  of  Mr.  C.  S.  Hoare 
and  other  changes  in  the  directorate,  he  said  the  shareholders 
would  view  the  accounts  now  submitted  with  satisfaction,  for 
entirely  by  natural  expansion  the  income  of  the  company  had 
during  last  year  increased  by  no  less  than  /f  592,512,  reaching 
the  gratifying  amount  of  ^'6,660,840.  To  this  every  section 
of  the  business  had  contributed  in  a  really  remarkable  degree, 
which  was  the  more  surprising  when  the  abnormal  times  in 
which  we  were  living  were  considered.  Following  on  with 
this  development  in  the  business,  they  had  realised  the  very 
handsome  surplus  of  ^819,927,  which  was  increased  by  intere.st 
on  the  funds  (apart  from  life  funds)  to  ;^i, 107,059 — the  first 
time  in  the  company's  history  the  round  million  had  been 
exceeded. 

After  ■providing  jf 223, 924  necessary  to  add  to  the  various 
funds  owing  to  this  increased  income,  they  had  been  enabled 
to  carry  to  profit  and  loss  a  sum  of  .,^883, 135,  a  most  satisfactory 
outcome  of  the  year's  working. 

It  was  a  great  consolation  that  the  foundations  of  British 
insurance  institutions  were  laid  so  deeply  and  surely  in  their 
world-wide  transactions  that  even  the  shock  and  strain  of  the 
great  war  now  in  its  fourth  year  found  them  unimpaired,  and 
the  business  done  increased  in  every  section  by  a  healthy  de- 
velopment, backed  by  enterprise,  and  crowned  with  success.  It 
was  doubtful,  however,  if  they  could  look  for  quite  the  same 
ratio  of  profit  in  immediate  years  to  come.  With  continuous 
upward  tendency  in  values,  and  industrial  expansion  caused  by 
the  war,  a  continued  increase  in  income  might  be  looked  for. 
But  on  the  expenditure  side  they  must  be  prepared  for  a  heavier 
incidence  of  claims  due  directly  or  indirectly  to  the  war,  and 
at  the  same  time  to  bear  a  constantly  increasing  burden  of 
taxation  in  all  parts  of  the  world,  together  with  a  steady  growth 
in  cost  of  all  that  was  necessary  for  the  successful  equipment 
and  organisation  of  the  company. 

Before  referring  to  the  accounts  in  detail,  he  wished  to  em- 
phasise the  wisdom  of  the  great  insurance  companies  in  having 
virtually  all  become  composite  companies.  If  one  section  of 
business  produced  only  meagre  results,  the  balance  was  generally 
more  than  restored  by  the  other  departments,  but  when— as  in 
this  company's  case  last  year— all  departments  contributed  sub- 
stantially increased  profits,  they  might  be  considered  fortunate. 
He  was  sure  the  shareholders  would  appreciate  this.  (Hear, 
hear.) 

Referring  to  the  fire   branch,  the   Chairman  said   there   had 
been   an   increase  of  ^294,301    in   premiums,  which,    with    a  de- 
crease in  their  loss  and  expense  ratios,  enabled  t'''- 
a  surplus  of   12.06   per  cent.,   against   10.15   per   cent.,   a  most 
gratifying  step  forward. 

The  accident  department  continued  to  produce  uniformly  good 
results,  and  after  allowing  for  interest,  and  adding  reserves  to 
the  extent  of  ;^38,767,  the  profit  and  loss  account  was  benefited 
by  a  sum  of  ;^i  59,908,  as  against  ^85,666  in  the  previous  ac 
counts. 

The  results  of  the  marine  branch  might  be  viewed  with 
particular  satisfaction.  The  underwriting  surplus  represented 
27.79  P«r  cent,  of  the  premiums  received.  In  1916  they  thought 
thev  had  a  very  good  year  in  obtaining  16.23  P^i  cent. 

The  reserves  in  this  account  had  been  strengthened  by  ;,;^67,437, 
and  the  directors  were  able  with  the  addition  of  interest  to 
transfer  jf  181 ,674  to  the  credit  of  profit  and  loss  account,  as 
against  ^^98,667  in  1916. 

The  company's  business  in  this  section  could  no  doubt  have 
largely  been  increased,  but  they  had  preferred  to  adhere  to  a 
policy  of  conservatism  throughout  the  war,  and  to  select  care- 
fully hoth  war  and  marine  risks,  with  the  good  results  now 
shown. 

Ordinary  marine  insurance,  the  Chairman  continued,  was 
passing  through  very  abnormal  times,  owing  to  the  extra- 
ordinary conditions  which  prevail.  On  the  one  hand  was  the 
withdrawal  from  the  market  of  vessels  taken  over  for  Admiralty 
purposes,  and  the  diversion  of  steamers  to  other  trades  and 
routes  wherever  the  Shipping  Controller  directed,  with 
lengthened  voyages  and  alterable  destinations,  for  which  it  was 
doubtful  if  the  extra  premium  obtained  was  sufficient  compensa- 
tion. On  the  other  hand,  there  were  considerably  increased 
dangers  of  navigation,  with  greatly  enhanced  repair  bills  in 
case  of  damage,  together  with  shortage  of  salvaee,  personnel  and 
equipment.  All  these  matters  produced  very  difficult  and  serious 
underwriting  problems,  which  had  to  be  faced  in  a  practical 
and  cautious  spirit. 

'/v:"o*^*^  ''^*^  department  the  total  net  new  sums  assured  of 
/;658,4g5  showed  an  increase  over  the  previous  year,  and  con- 
stituted a  record  for  the  company. 

They  could,  no  doubt,  have  added  very  materially  to  the 
volume  of  new  business  if  they  had  been  willing  to  quote  very 
low  non-bonus  rates,  but  apart  from  the  question  whether  such 
under  present  financial  conditions  would  be  likely  to  yield  any 
profit,   they  decided    to  stand   by   their   participating   class  of 


policy,  under  which  they  held  a  most  unique  record,  amd  not 
divert  the  steady  flow  of  business  from  that  class. 

Th«  nett  death  claims  paid  and  outstanding  for  the  year 
amounted  to  ;£247,433,  including  bonuses — an  increase  of 
£22,31$  on  the  previous  year.  Claims  due  directly  to  the  war 
accounted  for  ;f29,i66,  and  the  total  claims  since  the  outbreak 
of  hostilities  due  directly  to  the  war   amount  to  ;£95,76o. 

The  life  funds  had  increased  from  ;^4,2oo,478  to  £^,3i(),20j, 
and  the  annuity  funds  had  diminished  by  .£74,930. 

Referring  next  to  depreciation  in  investments,  the  Chairman 
said  the  directors  had  previously  deak  with  this  adverse  factor 
in  the  most  thorough  fashion,  and  at  the  last  meeting  the  .share- 
holders expressed  warm  approval  of  that  action.  Unfortunately, 
the  improvement  which  was  then  alluded  to  was  not  maintained,, 
owing  chiefly  to  the  fall  in  prices  of  American  securities  in- 
separable from  the  entrance  of  the  United  States  into  the  war 
and  owing  also  to  the  lamentable  collapse  of  Russia.  As  to 
a  large  extent  this  company  was  an  American  company,  they 
could  not  but  rejoice  when  a  nation,  whose  goodwill  and  con- 
fidence they  had  secured  in  a  special  degree  for  over  half  a 
century,  decided  that  Britain's  cause  in  the  great  conflict  was 
theirs,  and  with  characteristic  energy  and  wholeheartedness 
threw  them.selves  into  the  striiggle  regardless  of  its  effect  on 
their  national  wealth.  In  this  spirit  of  comradeship  he  was 
sure  the  company  would  cheerfully  assume  whatever  burden  of 
temporary  loss  might  appear  as  a  reflex  result  of  their  inter- 
vention. (Hear,  hear.)  The  directors  had  decided  to  transfer 
^^300,000  to  investment  fluctuation  fund  in  order  to  provide  for 
depreciation  in  its  American  securities.  They  had  also  written 
down  some  of  their  investments  by  the  sum  of  .1^152,756,  in  the.se 
being  included  their  Russian  bonds,  which  had  been  dealt  with 
in  a  drastic  manner. 

For  years  past  this  company  had  been  steadily  writing  down 
its  investments,  and  to-day  its  gilt-edged  holdings  acquired 
in  the  'eighties  and  'nineties  had  been  brought  from  a  3  per 
cent,  to  a  5  per  cent,  level.  They  were  paying  for  their 
prosperity  in  those  days,  and  he  thought  they  might  view  with 
.some  pride  the  fact  that,  while  they  had  since  1906  provided 
for  depreciation  a  sum  of  nearly  two  and  a-half  millions,  they 
had  been  able  to  add  to  their  funds  out  of  revenue  even  a 
larger  amount.  Surely  this  achievement  must  give  us  all  just 
confidence  in  the  future  of  the  company  when  this  drain  upon 
its  resources  would  have  ceased.  Having  made  such  headway 
with  the  current  against  them,  he  thought  he  might  claim  the 
promise  of  a  rapid  advance  when  they  struck  the  flowing  tide. 
(Applause.) 

With  regard  to  dividend,  the  directors  had  felt  justified  in 
increasing  the  interim  distribution  by  one  shilling  per  share, 
less  tax.  They  were  of  opinion  that  a  similar  addition  might 
be  made  to  the  final  dividend  due  on  22nd  inst.,  making  a 
total  dividend  for  the  year  of  26s.  per  share,  less  tax,  as 
compared  with  24s.  per  share,  less  tax,  paid  in  the  previous 
year. 

The  Chairman  next  referred  to  the  staff  who  had  joined  the 
forces,  of  whom  829  were  at  present  so  serving ;  84  had  paid 
the  supreme  sacrifice,  lo  were  missing,  eight  were  prisoners 
of  war,  and  125  wounded.  He  also  mentioned  the  distinctions 
gained  by  them  since  the  last  meeting,  adding  that  the  outlook 
for  man-power  in  the  company  was  a  cause  of  justifiable 
anxiety,  but  they  trusted  that  the  fine  spirit  of  the  fersonnet 
remaining  would  enable  them  to  survive  all  threatened 
difficulties. 

With  regard  to  the  current  year,  it  was  running  on  the  whole 
just  a  little  better  than  its  predecessor,  and  if  no  exceptional 
experiences  were  met  with  they  hoped  to  present  next  year  a 
report  approaching  to  the  present  one.  The  Chairman  con- 
cluded :  But  it  is  not  my  function  to  anticipate  events.  The 
horrors  of  war  are  still  upon  us.  Its  demands  may  still  call 
for  untold  sacrifices.  Whatever  those  sacrifices  may  be  in 
money,  we  shall,  I  trust,  be  ready  to  meet,  and  in  meeting 
them  I  know  we  shall  have  our  shareholders  behind  us.  That 
the  company  will  still  continue  to  prosper  I  am  sure,  but  to 
see  our  splendid  body  of  men  almost  week  by  week  depleted 
by  death  or  serious  casualty  causes  a  sense  of  depression,  which 
renders  financial  prosperity  but  a  poor  consolation.  My  fervent 
hope  is  that  if  these  sacrifices  must  be  made,  they  shall  not 
have   been  made  in  vain.     (Applause.) 

Mr.  R.  Q.  Wilson  (deputy-chairman)  seconded  the  motion. 
No  observations  being  offered  b)'  shareholders,  it  was  put  to  the 
vote  and  carried  unanimously. 

On  the  motion  of  Mr.  John  Findlay,  seconded  by  Mr.  J.  R. 
Broadfoot,  the  retiring  directors — Sir  Aubrey  Brocklebtink. 
Bart.,  and  Messrs.  F.  C.  Bowring,  J.  Bruce  Ismay,  H.  H. 
Nicholson,  and  R.  Q.  Wilson — were  re-elected. 

On  the  motion  of  Mr.  John  Rogers,  seconded  bj'  Mr.  John 
T.  Shutt,  Messrs.  Stead,  Taylor,  and  Stead  were  reappointed 
auditors. 

Mr.  H.  B.  Sedgwick,  in  moving  a  vote  of  thanks  to  the  board 
of  direction  and  to  the  various  local  boards  at  home  and  abroad, 
^aid  all  would  realise  the  strenuous  times  through  which  we 
were  now  passing,  and  the  increased  responsibilities  of  the 
directors.  The  success  of  their  efforts  in  the  year  under  re- 
view should  meet  with  the  appreciation  of  the  shareholders. 

Mr.  T.  J.  McGeorge  seconded,  and  the  resolution  was  carried 
with  great  cordiality. 

Mr.  John  Temple  moved  a  vote  of  thanks  to  the  officers  of 
the  company  at  home  and  abroad  for  their  zeal  and  interest  in 
its  service.  AH  present,  he  said,  would  understand  that  with 
depleted  staffs  and  under  the  conditions  existin?  ihe  work  of 
the  officers  had  been  carried  on  with  difficulty.     They  had  been< 


May   i8,   1918. 


XT  be  3nve8tov6'  IReview. 


4&9 


I 


animated  by  a  sense  of  duty  to  the  shareholders,  whose  pleasant 
duty  it  now  was  to  return  their  thanks.  At  the  back  of  the 
minds  of  all  the  shareholders  wasi  the  war,  and  as  it  had  been 
the  duty  of  the  officers  to  steer  the  company  tnrough  the  diffi- 
cult year,  so  the  shareholders  had  a  responsibility,  which  was 
to  find  the  finances  with  which  to  carry  on  the  war,  and  destroy 
the  damnable  and  blasphemous  power  of  the  Hun.  (Hear, 
hear.)  It  was  no  use  blinking  it.  There  could  be  no  peace 
with  anybody  who  never  kept  their  word,  who  killed  our  men 
as  they  lay  on  the  field,  ill-treated  our  prisoners  of  war,  and 
gathered  our  dead  into  bundles  and  tuined  them  into  gly- 
cerine—there could  be  no  peace  with  such  a  people  as  that. 
(Applause.) 

Mr.  R.  C.  Lockett  seconded  the  motion,  which  was  carried 
with  acclamation. 

Mr.  A.  G.  Dent  (secretary  and  general  manager),  in  respond- 
ing, said  it  v/ns  impossible  for  any  individual  to  personally 
control  such  a  vast  organisation  as'this  company  now  possessed, 
and  the  manager  must  be  (Jependent  on  the  loyal  service  of  every 
member  of  the  staff,  and  more  especially  the  senior  officers.  In 
this  respect  he  himself  was  particularly  fortunate,  and  though 
it  might  perhaps  be  invidious  wTien  all  had  given  of  their  best, 
he  must  mention  the  valuable  service  rendered  to  the  company 
by  Mr.  J.  C.  Rimnier,  sub-manager,  and  by  the  assistant  secre- 
taries, the  London,  manager,  and  others.  Nor  should  he  omit 
reference  to  members  of  the  staff  gallantly  serving  their  coun- 
try, and  thus  enabling  those  remaining  behind  to  carry  on  the 
work  of  the  company  in   safety. 

A  vote  of  thanks  to  the  chairman  for  presiding  closed  the 
proceedings. 


LONDO^vl    BANK    OF    AUSTRALIA. 

The  ordinary  general  meeting  of  the  proprietors  of  the 
London  Bank  of  Australia,  Ltd.,  was  held  en  Wednesday  at 
Winchester  House,  Old  Broad  Street,  E.C.,  Mr.  George  Slade 
(the  chairman)   presiding. 

The  London  manager  and  secretary  (Mr.  W.  II.  Barber) 
having  read  the  notice  convening  the  meeting  and  the  report 
of  the  auditors, 

The  Chairman,   in   moving  the   adoption  of  the   report   and 
accounts,    said  :    In   this  the  twenty-fifth   year   since  the   bank 
had  its  troubled  time  it  is  pleasing  to  be  able  to  put  before  you 
such  a  satisfactory  balance-sheet.     During  the  last  quarter  of 
a    century   the    bank    has   cleared    off    the    heavy    millstone    of 
£^,ibi,q2H  fixed  deposits,  instalments  being    paid  .several  }'ears 
before  due  date;  a  reserve  fund  of  ^3^5,000  has  been   built  up 
after  making   due  provision   for  all  contingencies,  and    I  think 
we  may   reasonably  consider   that  we  have   reached    the   basis 
nf    payment    of   .steady    dividends.      In    time   I    hope   they    may 
be  increased,  but  we  do  not  know  what  the  future  has  in  store, 
and   at  this   grave  crisis  of  our  nation   your  directors  feel   that 
resources  must  be  kept  strong  to  meet   adversity  or  the   great 
prospect  of  expansion   for   a  strong   concern  when   our  country 
emerges    victorious.      The  difficulties    of    carrying    on   banking 
business,  apart    from  the   working,   have   not  decreased.      Ton- 
nage has   greatly   diminished,   even   since  the   last   occasion   on 
which  I  addressed  you.     A  considerable  branch  of  our  business 
is  in  abeyance,  owing  to  this  cause  and  to  purchases  by  Govern- 
ment of  meat,  wool,  and  most  of  the  Australian  export  commodi- 
ties, and  there  is  no  great  demand  for  loans  on   good  security. 
We  have    taken    our    share   in    financing   these    purchases,    but 
the   repayments    are   made    in    Ix)ndon ;    consequently   we    find 
ourselves   with    large   sums  of    money  on    this  side,    which   for 
the   time  being   it  is   difficult   to   return  to   Australia.     As   far 
as   we  can    fore.see,  the   difficulty  will  continue   for  some  time 
to  come.     The  producer  in  Australia  is  doing  well  ;  good  seasons 
have  given  him  good  crops,  sheep  have  increased,  and  a  good 
purchase   value  is    paid.      Unfortunately,    there   have    been   bad 
strikes,   and,  owing   to  shortage  of  labour,   less  land   has   been 
placed  under  cultivation.     The   production    of   wheat  is   about 
30,000,000    bushels    less.       Notwithstanding     these    drawbacks, 
Australia    is   flourishing.      I'ndoubtedly  there    will   be   a    great 
world   demand    for    wool    and    wheat    long   after   the    war,    but 
for  many  years   the   shipping  shortage   in   Australia   cannot  be 
overcome,     and     when    Government    buying    ceases,    .difficulty 
must   arise    there    in    consequence  of   the    accumulations   which 
cannot  be  got  away.     It  is  then  that  all  our  resources  will  be 
needed,   and    we  must  keep   ourselves    strong    for   the   occasion. 
The  balance-sheet  shows  an  expansion  in   assets  and  liabilities 
°f  £73^^^??'  in  tJi^  year,  which  are  very  satisfactory  figures  for 
an  undertaking  of  this  size.     Coin  at  /i, 841, 232  and  money  at 
short  call  at  /4ii;,ooo  show  increases  of  ^345,770  and   ^£'250, 000 
respectively,    and    investments   and   bills    receivable   show   a   de- 
crease of  ;^i33,278,  which  necessarily  follows 'upon  the  increa.se 
°f  .^250,000  money  at  short  call   in   London.     Bills  discounted 
and    advances    have    increased    by    /2io,7i9.      Turning    to    the 
other    side   of    the    account,    you    will    note   that   deposits   and 
current  accounts  are  ^621,287,  and  bills  payable  ^78,274  higher 
— figures    which    must    be    regarded    as      highly     satisfactory. 
Gross   profits    this    year    were   /ii.qoo   higher    than    last    year, 
but  salaries   and   expenses  have   increased  bv  /6.300.     Against 
this  taxes  are  less   by  ;f8,7oo,   owing  to   allowance  in   respect 
f   colonial   tax.      The   net   increase    is    con.sequentIy    ^14,000. 
The   sum  of   /3,ooo    is     granted     to    officers'    provident     and 
guarantee   fund,    an    increase  of  /i,ooo   this  year.     The  same 
dividends  as  last  year  are  proposed,   /?o,ooo  "is  carried  to  re- 
serve, and  the  carry  forward  at  /24,[;26'is  increased  by  /3,84c;. 
V\e  hope  next  year  will  enable  the  bank  to  show  as  good  a  re- 
turn.     The   bank's   business  is  well   maintained,    and   our    re- 


sources will  enable  us  to  make  good  use  of  opportunities  as  they 
arise. 

Mr.  E.   V.  Reid  seconded   the  resolution,  which  was  carried 
unanim.ously. 


THE    EASTERN    BANK. 

The  eighth  annual  general  meeting  of  shareholders  of  the 
Eastern  Bank,  Limited,  was  held  on  Wednesday,  at  4,  Crosby 
Square,  E.C.,  Lord  Balfour  of  Burleigh  (the  chairman)  pre- 
siding. 

The  Chairman  said  :  Our  meeting  is  of  necessity  later  in  the 
year  than  usual  owing  to  the  fact  that  a  considerably  longer 
period  is  occupied  in  the  transmission  of  the  mail.  In  view  of 
the  length  of  this  delay,  which  we  foresaw,  and  the  fact  that 
our  dividend  is  paid  once  a  year  in  the  month  of  March,  we 
thought  it  was  only  due  to  our  shareholders  that  we  should  de- 
clare an  interim  dividend.  From  the  figures  and  cabled  ad- 
vices placed  before  us  the  directors  considered  they  were  fully 
justified  in  making  this  dividend  7  per  cent.,  less  income-tax, 
>as  against  6  per  cent.,  less  income-tax,  paid  to  you  last  year. 
Our  Bagdad  branch  is  again  open,  and  with  the  disturbed  con- 
ditions existing  in  that  part  of  the  world  it  is  only  natural  that 
the  returns  upon  which  our  figures  are  based  should  be  some- 
what delayed.  The  net  profits  for  the  year,  including  ^'9,545 
brought  forward  from  last  year,  amount  to  £yj,qi&,  and,  after 
placing  /2o,ooo  to  the  reserve  fund,  and  paying  the  dividend 
already  mentioned,  we  carry  forward  £ic^,(ji^  to  the  next 
account.  The  figures  of  the  balance-sheet  show  a  satisfactory 
increa.se.  Our  capital  is  practically  unchanged.  Our  reserve 
fund,  with  the  £ic„ocx>  added  last  year,  stands  at  ^70,000,  and 
an  addition  is  now  being  made  which  will  bring  the  figure  to 
/go,ooo.  Current  and  deposit  account  balances  show  an  in- 
crease of  nearly  ^2,000,000,  which  is  very  satisfactory.  Bills 
payable  show  a  decrease  of  about  ^42,000,  while  acceptances  on 
account  of  customers  are  ^49,000  higher.  Loans  payable 
against  bills  and  securities  are  ^'310,000  less,  a  consequence  of 
our  increased  resources  in  the  .shape  of  current  account  balances 
and  fixed  deposits.  Cash  on  hand  and  at  bankers,  including 
bullion,  stands  at  /a, 196, 106,  the  increase  upon  last  year's 
figures  being  desirable  in  view  of  our  increased  liabilities  on 
the  other  side  of  the  balance-sheet.  Securities  stand  at 
^236,089,  slightly  more  than  last  year  owing  to  our  larger 
holdings  of  Government  securities.  Bills  receivable, 
^2, 154,000,  is  some  ^240,000  higher  than  last  year,  and  loan.s 
receivable  and  advances  show  an  increase  of  over  ^500, 000, 
chiefly  owing  to  larger  outstandings  in  the  shape  of  sterling 
bills  on  the  Ea.st,  against  which  advances  are  made  in  London. 
Turning  now  to  the  profit  and  loss  account,  our  gross  profits 
are  ^33,000  more  than  last  year.  Charges  are  higher,  and 
with  an  increasing  business  we  can  only  expect  this,  but  it  is 
our  constant  endeavour  to  keep  these  as  low  as  possible  with  a 
due  regard  to  the  efficient  working  of  the  bank  and  fairness 
to  the  staff.  I  cannot  make  any  definite  promise  on  the  point, 
but  we  hope  that  it  may  be  found  practicable  from  this  time 
forward  to  declare  interim  dividends  for  the  period  January  to 
June  each  year,  as  is  done  by  our  neighbours.  Of  this  year's 
prospects  I  can  only  say  that  they  appear  to  be  satisfactory, 
and  we  have  every  reason  to, hope  that  you  will  not  be  disap- 
pointed with  the  result. 

Lieut. -Col.    J.   Leigh   Wood    seconded    the   resolution,   which 
was  carried  unanimously. 


OILFIELDS     PRODUCTION. 

Anglo-Egyptian  Oilfields.— Last  week  : — Gemsah,  22  tons 
(against  18  tons) ;  Hurghada,  4,477  tons  (against  4,533  tons). 

United  British  Oilfields  of  Trinidad.— 747  tons  for  week 
ended  May  8. 


In     Argentina,     we     gather,     things     seem     to(    be     settling 
down,     although     latest     advices     by      cable      indicate      that 
the     railways      had      still     trouble      with      their      men,     and 
also      with      the      Goviernment ;      but      any      tendency      the 
Government     may    have    shown     to    take     steps     that     would 
lead  to  the  confiscation  of  the  property  of  foreigners  will  bring 
their  own  retribution,  and,   we  hope,   in   time  to  prevent   any 
real   mischief   being   done.     Otherwise  the    position   is   rather 
good  at  present.     There  is  excellent  pasture  for  the  flocks,  and 
livestock  is  again  finding  a  market  at  better  prices,  because  the 
freezing  companies  have  re.sumed  work.     Stacked  wheat  is  said 
to  have  been  somewhat  dabiaged  here   and  there  by  rain,  for 
the  rainfall  has  been  general   and  at  times   heavy  during   the 
month   preceding   the  date  of  the    circular,   that  is  to  say   in 
January   last ;  but  the  weather  was   excellent  for  the  growing 
maize,  and  the  prospects  pointed  to  "an   exportable  excess  of 
maize  beyond  the  probable  demand."     As  for   the  Budget,  it 
showed  a  deficit  of  $34,137,000  paper  when  it  left  the  Chamber 
of  Deputies,  but  it  has  been  returned  by  the  Senate  for  revision, 
and  it  is  expected  that   the  figures  will   in  the   end  be  made 
to  show  more  or  less  equilibrium,  if,  that  is  to  say,  the  Senate's 
revision  stands.     As  showing  the   apathy  of  politics,  however, 
a  quorum  could  not  be  obtained  in  the  Lower  Chamber  to  pass 
it  into  law.    This  does  not  promise  well  for  thrifty  finance,  and 
-Argentina  has  never  yet  been  thrifty. 


496 


Zbe  investors'  IftevievO.  m«v  .8,  ,9,8. 


GOVERNMENT  GOLD   MINING    AREAS 
(MOODERFONTEIN)  CONSOLIDATED,  LIMITED. 

(Incorporated  in  the  Transvaal.) 
Issued  Capital,  £1.400.000  in  1,400,000  Shares  of  £1  each. 

DIRECTORATE. 

S.  B.  JOEL  (Chairman). 
J.  MUNRO  (Deputy-Chairman).        G.  IMROTH. 
C.  MABX.  D.    CHRISTOPHERSON. 


Extracted  from  the  Annual  Report  for  the  year  ended  31st  December,  1917. 

Per  ton,  based  on 
Tons  Crushed  1,298,000  Tonnage  Cnuhed 

Total  Working  Revenue £1,930,666    14      O  fil       9     9 

Total  Working  Costs  1,236,741       3      2  O   19     1 


Working  Profit     £693,916  10  10  £0  10    8 

Total  Profit  for  year      £709,462      3      7 

Balance  unappropriated  at  31st  December,  1916 280,497   18  10 

This  amount  has  been  dealt  with  as  follows  : —  — ■ 

Government  of  the  Union    of  South   Africa,  £989,960      2      B 

share  of  profits  £230,033      O      S 

Income  Tax  and  Special  War  Le^-y,  Miners' 
Phthisis  Contributions,  Donation   to   War 

Charities  and  Interest  19,807  11       T 

Development  prior  to  production — Written  off     418,777      3      1 

. 668,617  15      2 


£321,332      7      3 

Dividend  No.  1  of  1  2J  per  cent £175,000      O      O 

Leaving  a  balance  unappropriated  of      £146,332      7      3 

The  Payable  Ore  Reserves  at  the  end  of  the  year  were  estimated  at   7,01 6,000 

stoping  tons  of  an  assay  value  of  7.5  dwts.  over  an  estimated  sloping  width  of  79  inches.  As 
compared  with  the  position  at  the  end  of  1916,  the  reserves  show  an  increase  of  2,086,000  tons, 
the  stoping  width  an  increase  of  4  inches,  and  the  value  an  increase  of  .3  dwt. 

The  full  report  and  accounts  may  be  obtained  from  the  London  Agents,  The    JobAnnesburg 
Consolidated  Investment  Company,  Limited,  10  and  11,  Austin  Friars,  E.C.  2. 


VAN  RYN  DEEP,  LIMITED. 

(Incorporated  in  the  Transvaal.) 
Issued  Capital,  £1,196,892  in  1,196.892  Shares  ot  £1  each. 


DIRECTORATE. 

S.  B.  JOEL,  alternate  J.  MUNBO  (Chiiirman). 
G.  IMEOTH.                                C.  MABX.  W.  DALRYMPLE. 

H.  A.  ROGERS.  J.  H.  CROSBY.  SIR  ABE  BAILEY,  K.C.M.O. 


Extracted  from  the  Annual  Report  for  the  Year  ended  31st  December,  1917. 


Per  ton,  based  on 
Tons   crushed,  517,870.  Tonnage  Crushed. 

Total  Working  Revenue £1,129,892      7      2  £2      3     7 

Total  Working  Costs         ,        ...  506,901      O  10  0  19    6 

Working  Profit  £623,991       6      4  £14     1 

Total  Profit  for  Year     £637,964      1     5 

Balance  unappropriated  at  31st  December,  1916  172,334  13     9 


£810,298  16     2 

This  amount  has  been  dealt  with  as  follows  : — 

Income  Tax   and,  special  War  Levy,  Miners'  Phthisis  Contributions, 

Donations  to  War  Charities,  and  Depreciation 81,323  18     9 

£728,974  16    6 
Dividends  declared  during  the  year — No.  8  of  20  per  cent,  and  No.  9  of 

22i  per  cent 608,679      2    O 

Leaving  a  Balance  unappropriated  of       £220,295  14     6 

The  Payable  Ore  Reserves  at  the  end  of  the  year  were  estimated  ut   2,268,698 

stoping  tons,  having  an  assay  value  of  8.9  dwts.  over  a  stoping  width  of  67  inches.  As  compiired 
with  the  position  a  year  ago,  this  shows  an  increase  of  89,747  tons ;  a  decrease  of  1  inch 
in  the  stoping  width,  and  an  improvement  in  value  of  .2  dwt. 


The  full  report  and  accounts  may  be  obtained  from   the  Ijondon  Agents,  The  Johannesburg 
Consolidated  Investment  Company,  Limited,  10  and  11,  Austin  Eiiars,  E.C. 2. 


May  i8,   1918. 


XTbe  5nve8tov8'  IReview. 


491 


WITWATERSRAND  GOLD  MINING  COMPANY,  LTD. 

(Incorporatad  in  the  TransTnal.) 


Issued  Capital,  £469,625  in  469,625  Siiares  of  £1    eacli. 


S.  B.  JOEL. 
J.  DALE  LACE. 


DIRECTORATE. 

J.  MUNBO  (Chairman). 
H.  N0UR8E. 
C.  MARX. 


G.  IJIROTH. 
W.  ROSS. 


Extracted  from  Annual  Report  for  the  year  ended  31st  December,    1917. 


Tons  crushed,  451|015. 


Total  Working  Revcnua  ... 
Total  Working  Costs 

Working  Profit       ... 


£561,268     14     1 
390,061        4     1 

£171,207     10    O 


Per  ton,  based  on 
Tonnage  Crushed. 

£1       410 
O    17       3 

£0       7      7 


Total  Profit  for  year        

Balance  unappropriated  at  31st  December,    1916 


This  amount  has  been  dealt  with  as  follows  ; — ■ 

Income  Tax  and  Special  War  Levy,   Miners'   Phthisis  Contributions, 
Donations  to   War  Charities  and  Expenditure  repairing  damages 


£191,392  6  9 
86,661   8  4 

£278,063  15  1 


32,558  11  8 

£245,495   3  5 

.  164,368  15  O 

.  £81,126  8  6 

The  Payable  Ore  Reserves  at  the  end  of  the  year  wer^  estimated  at  1,317,900 

stoping  tons,  having  an  assiy  value  of  6.4  dwts.  over  a  stoping  width  of  69  inches. 


caused  by  Dump  slide 


Dividends  declared  during  the  year  : — 

No.  26  of  20  per  cent,  and  No.  27  of  15  per  cent. 

Leaving  a  balance  unappropriated  of 


The  full  report  and  accounts  may 'be  obtained  from  the  London  Agents,   The  Johannesburg 
Consolidated  Investment  Co.,  Ltd.,  10  and  11  Austin  Friars,  E.C.  2. 


CONSOLIDATED  LANGLAAGTE  MINES,  LIMITED. 

(Incorporated  in  the  Transvaal.) 


Issued    Capital,   £950,000    In    950,000   Shares   of   £1    each. 
5^%  Debentures  (Balance  at  31st  December,  1917),  £125,000, 


S.  B.  JOEL. 
J.  H.  CROSBY. 


DIRECTORATE. 

J.  MUNRO  (Chairman). 
J.  PRIEDLANDER. 
G.  IMROTH. 


C.  MARX. 

E.  DANCKWERTS. 


Extracted  from  the  Annual  Report  for  the  year  ended  31st  December,  1917. 


Tons  Crushed,  585,650 


Total  Working  Revenue 
Total  Working  Costs... 


Per  ton,  based  on 
Tonnage  Crushed. 
.     £728,945  16      3        £1      411 
500,929      3      7  O  17     1 


Working  Profit    ... 


Total  profit  for  the  year  

Balance  unappropriated  at  31st  December,  1916     ... 


£228,016  12   8    £0  7  10 

£231,225  14  10 

98,627  3  4 


This  amount  has  been  dealt  with  as  follows : — 

Income  Tax  and  Special  War  Levy,  Debenture  Interest  and  Expenses, 
Miners'  Phthisis  Contributions,  Donations  to  War  Charities  and 
Depreciation    ...         ...         .*.. 


£329,852  18  2 


104,52013  5 

£225,332  4  9 

166,250  O  O 

£S9,082  4  9 

The  Payable   Ore    Reserves  at  the  end  of   the  year  were  estimated  to  amount  to- 
2,1 32,778  stoping  tons,  having  an  assay  value  of  6.0  dwts.  over  a  stoping  width  of  53  inches. 

The  full  report  and  accounts  may  bo  obtained  from  the  London  Agents,  The  Johannesburg 
Consolidated  Investment  Company,  Limited,  10  and  11,  Austin  Friars,  E.0.2, 


Dividends  declared  during  the  year : — 

No.  8  of  10  per  cent,  and  No.  9  of  7J  per  cent. 

Leaving  a  balance  unappropriated  of 


492 


TLbc  Jnveetors'  TReview. 


Mav    8,   1918. 


INDIAN  RAILWAYS. 


OROSS  TRAVnC   »0»  WEEK. 

GROSS  TRArriC  TO  DATE 

Name. 

Week 
ending 

Amount 

In.  or  dec. 

on  last 

year. 

s 

Amount 

In.  or  dec 
on  last 
year. 

Assam  Bengal 

BarsI 

Bengal  &N.-W.     .. 

Bengal  Nagpur 

Bombay,  Uaroda  .. 

Burma 

Delhi  Umballa       .. 

East  Indian.. 

Gt,  Indian  Penin.  .. 

Lucknow-Bareilly. . 

Madras      and       S. 

Mafaratta  .. 
Nizam'sGd.(Broadi 
,,        „     (Metre) 
Robilkund  ^nd 

Kumaon  .. 
South  Indian 

Mar.     2 

;;  ii 

..  23 

May      4 

Mar.   16 

May     4 

•  t      11 

Mar.  16 

..     «3 
..       2 
..       2 

..      16 

..      23 

■   Rs. 

1,64.143 
10,200 
4,96.930 
12,35,000 
18,19,000 
5,18,182 
92,400 
26,83,000 

11,15,000 

1,66,964 

82,499 

35.206 
6.78,923 

Rs. 

+     36,33* 

—  6,400 
+  9.158 
+  55.000 
4-  1,79,000 

—  '7.479 
+  12.439 
4-  2.35,000 
4-  1,78,100 
4-      16,924 

+  20,932 
+  32.564 
+        1,511 

+  14.463 
+      14.995 

t 

t 
t 

t 
i 
1 

: 

t 
t 

t 

t 

t 

R.. 

30.97.613 
7.78.700 

99.66,892 
5,46,00,153 

87.91,000 

2,11,43,79 

4.41.485 

1.47.94,000 

1,13,26,100 

12,96,717 

2,62,61,870 
29,73.522 
18,87,625 

11,11,039 
1,61,10,988 

Rs. 
4-    3,16,300 

—  2,28,700 

—  3.54.501 
+  48.43.907 
4  I0.62,c:oo 

—  76,306 
4-        65,214 
4-    9,12,000 
4-     1,43,702 
4-     1,55.246 

+  13.38.931 
4-     1.10,871 
+        38,591 

4-    1,94,482 
+    9.44.99'' 

MONTHLY    STATEMENTS. 


I     NCTT  EARHIiiai  FOR  MOMTH.       NEXT  EARMINCS  TO  DATE. 


t  April  1.           t  October  i. 
TRAMWAY  AND  OMNIBUS.— HOME. 

Dublin  United 
Hastings  and  Dist.. 
Isle  ol  Thanet 
Lancashire  United.. 
Provincial    .. 
Yorks.  (Wst.  RHng.) 

Apr.    5 
May    6 
..       4 
..      8 
Apr.  27 
May  12 

7.817 

1,160 

2,882 
2,804 
2,5'.3 

£ 
+  1.914 
+      58 
—     108 
+    683 
+     453 
+     436 

£ 

99,454 
18,964 

5.659 
48,874 

44,856 

£ 

+     19.435 
+       2,274 
—       2,147 
+      14,389 
+      13.337 
4-      10,254 

♦  Fr 

om  Oct. 

I. 

t  Fro 

m  Ja 

n.  1. 

TRAMWAY  AND  OMNIBUS.— FORblGN  AND  COLONIAL. 


Alabama  Power  .. 
Anglo-Argentine  .. 
Auckland  Etectrla. . 
Brazilian  Traction  . 
Brisbane  Eleo.  Inv. 
British  Columbia  . . 
B.A.  Lacroze 
Burmab  Electric  .. 
Calcutta 
Cartbagena  and 

Herrerias  . . 
Cordoba  Light 

P.  &  T 

Hongkong   .. 
La  Plata 

Lima 

Madras  Electric    .. 

Manila  Electric... . 

Mexico 

Rangoon 

Singapore  Electric 

Toronto 

United  of  Monte  V 

Vera  Cruz   ,. 

Wimilpeg    . . 


Mar. 

S 

May  13  i 

Apr. 

12 

Mar. 

« 

Apr. 

Mar. 

s 

\pr. 

Mar. 

b 

May 

11 

Apr. 

b 

Feb. 

Mar. 

16 

Apr. 
Mar. 

b 

Apr. 

30c 

Keb. 

Nov 

1! 

Apr. 

8 

l-eb. 

23 

Mar. 

II 

Apr. 

Feb. 

« 

Mar. 

§ 

26,829 
56,634 

23,209 
M3,925,ooc 
,  33.530 
•129,658 
41.643 
Rs, 27,906 
R5.74,568 

4,2CO 

12,972 

$12,349 

3,169 

42,106 
Rs.  42,911 

168,000 

♦  215,256 

5.885 

•  13.670 

•531.725 

33.704 

42,200 

•66,661 


£ 
+       20,143 

+         3.586 

4-  2,031 

M  226,000 


3.910 
•29.210 

2,532 
Rs,  774 
Rs. 7,324 

166 


+  1,076 
4-  228 

+  940 

+  4,520 

4-Rs,  8,966 
+  25,870 
—  •108,669 


Ms, 


849 
•  707 

•  56,119 

4,474 
6,300 

•  16,980 


£ 

126,829 
1,053.356 

224,466 
M11186000 

137.569 
•1.032,557 

388,064 

185,428 
Rsi227,9c8 

17,558 

,147.938 

•153.745 

19.972 

127.555 

Rs. 320, 724 

335,000 

$3,193,106 

22,863 

•104,652 

$1,442,834 

206,037 

84,200 

•216,856 


£ 

20,143 
76,595 

9,8So 

—  M852,ooo 
+  9.789 
4-  ^160, 244 
4-  «.6ol 
4-  Rs.  991 
4- Rs. 83,027 

+    3.032 

+      435 

—  ^2,605 
4-  2,807 
4-  18,910 
4-Rs.44,63' 
+   46,570 

—  ^197,227 
2,363 

•  1,821 

•55.211 

19,415 

19,300 

•  33,817 


taS  days.       ♦  From  Jan.  1       g  Nelt.       a  From  luiy 
FOREIGN   RAILWAYS. 


c  Two  weeks. 


AlcoyandGandla.. 
Antofagasta  (Chili) 
Arauco  .,  .. 
Argentine  N.E,'  ,. 
Bilbao  R,  and  Canta 
Bolivar 
Brarll 

Brazil  Gt.  Southern 

B.  Ayres  &  Pacific 

Do.  Central     . . 

Do.Gt.South'n 

Do,       Western 

Central  Argentine.. 

C.Ur'g'ayofMte  V. 

Do.  East'nEi. 

Do.North'nEx, 

Do,  West'n  Ex. 

Cordoba  Central  . . 

Costa  Rica  . 

Cuban  Central 

Dorada  Extension.. 

Egyptian  Delta     ,. 

Entre  Rios  . . 

French  Sante  F6  . . 

Gt.  South,  of  Spain 

Gt.West.  of  Brazil.. 

Havana  Central    . . 

Inter,  of  C,  Amer,.. 

La  Guaira  and  Car. 

Leopoidina.. 

Midland  Uruguay  , . 

Mogyana 

N.W.  of  Uruguay  . . 

Nitrate 

Paraguay  Central  . . 

Paullsta 

Peruvian  Corpn    . . 

■Salvador 

State  of  Bahia  S.W. 

S.  Paulo  (Brazilian) 

Sorocabaua.. 

Taltal.. 

United  of  Havana 

West'n  of  Havana. . 

Zafra  and  Huelva. . 


28 


May 

Mar. 
May 
Apl. 

Feb, 
Dec, 
May 
Mar, 
May 


Mar. 
May 
Mar. 
Feb. 
May 
Feb. 
Apl.  27 
M-jLy    11 

..      II 
Mar.  C 
Apl. 
May    II 
Apl. 
Feb. 
Apl. 

..  30 
May  II 
Feb.  ♦ 
Apl.  * 
May  4 
Mar. 
May  12 
Feb.  • 
Mar.  • 
May    II 

>.     II 
Mar.     • 


Pa. 


'  Months,  t  From  Jan. 


£ 

9,500 
52,590 
12,500 
10,200 

5.453 
13.000 

M4,426,ooo 
Mis.  66,912 
100,000 
38,675 
133,000 
86,000 
160,000 
18,962 
6,636 
4,057 
2,040 
4l,coo 
3.322 
34.889 

8,200 

6,519 

23,8co 
147,180 
29.535 
14,500 
11,210 
30,205 
5,000 
30,063 
12,872 
Mi, 793, 000 
$22,000 
35,247 
3.730 
M2. 740,000 
81,079,880 

M47,ooo 
22,637 
Ml, 784, 000 
20,392 
78,916 
11,746 
13.419 


H-S. 


500 
9,405 
1.500 
1,200 
2,011 

962 


4-M7i3,o64 

4-  M22,712 
4-  10,000 
14.034 
30,000 
42,000 
70,100 

5.642 

494 

1,020 

527 
4.330 
2,984 
4.149 

400 

1.253 

10,700 

33,260 


4- 

I- 

4- 
-PS55,4II 

4- 
4- 


1,000 
3. '77 
9.999 
2,500 
7.924 
i,8oe 
+  M4I5,924 

—  »6  7 

—  601 
4-  700 
+  M994,536 
4-  81^2,380 

—  25 

—  M20,000 

—  1,170 
4-  M272,301 
4-  119 
4-        14,292 

1.427 
4-    3.201 


£ 

Ps. 167,400 

813,260 

39,000 

384,600 

15,083 
II3.775 

M9,628,ooo 

M  538,439 

4,191,000 

252,258 

4,908,703 

2,359,000 

5,140,200 

831,099 

231,203 

148,133 

100,583 

1.393.350 

107.942 

945.078 

23,900 

264,360 

719,200 

294,668 

Ps,  512,305 

337,800 

403.805 

77,876 

24,250 

599,006 

133.054 

M  3,948,000 

•  260,697 

241,090 

130,190 

M5,7oo,ooo 

3  10402,440 

M237,000 

382,065 

•^3.736.000 

224,678 

2,605924 

410,720 

35.9" 


„   £ 

-Ps, 27,470 

4-      102,465 

4-  6,000 

4-        68,398 

+  2,919 

4-         14,630 

4  Ml 783563 

4-    M74.769 

4-      309.000 

+        35.451 

162,549 

150,000 

490300 

235.341 

7,391 

36,441 

18.3S9 

64,110 

92.955 

■      167.565 

2,700 

62,069 

176,600 

108,973 

Ps  112,023 


I.  tFromJuJyi,    c  Nett.    6  15  days 
COLONIAL  RAILWAYS. 


90,850 
4-      85,946 

—  27,584 

—  10,750 
+  168,747 
4-  2,844 
4-  M969,999 
4-  *17.004 
4-  13.700 
4-  15.790 
+  M 1807952 
4-  Si  142548 

—  1.486 

—  M53,ooo 
+  '58.5S9 
+  M  472, 195 
+  37.023 
+  631,798 
4-  111,617 
-1-  5.393 


a  10  days. 


Beln.. 

Canadian  Northern 
Canadian  Pacific 
GcTrk,  Main  Line 
Gr,  Trk,  Western.. 
Detroit  G.  H.  &  M 
GrTkPac  Prairie  Sc 
MashonalanJ 
Mid.  of  Westn,  Aus. 
New  Cape  Central. . 
Rhodesia 


Dec. 

*c 

May 

1, 

,t 

,, 

,t 

,, 

Ian. 

Mar, 

Ian. 

*c 

£ 

49.448 

•827,300 

♦3.033,000 

236,307 

45.226 

13.274 

21,021 

52,822 

9.594 

2,713 

76.395 


i 

—  1,841 

4    $93,000 

—  932,000 
56,412 

5,778 
621 
324 

3.300 

1,616 
530 

4,1 


£ 

173.777 

♦  35,485,000 

•48,832,000 

3.377.356 

621,514 

200,653 

433.822 

226,599 

70,728 

30,840 

345.800 


*  MonUit.         ]  July  I.         t  Jan.  1.       c  From  Oct.  r. 


Atoblson  T.  &  S.  Pt 
Atlantic  Coast  Line 
Baltimore  81  Ohio  .. 
Canadian  Northern 
Canadian  Pacific  .. 
Chesapeake  &  Ohio 
Chicago  &NW.  .. 
Chicago  Burl.  &  Q. 
Chicago  G.W. 
Chicago  Mil.  &  S.P. 
Chicago,  Rock  I.&P. 
Colorado  &Bouthern 

Cuba 

Delaware  &  Hud.  ,. 
Denver  &  Rio  Gran. 

Brie 

Gr,Tr,  Main  Line.. 
Grand  Trunk  Wesin 
DeiroitG.H.&Mil. 
Gt.  Northern 
Illinois  Central 
Kansas  City  Southn 
Lehigh  Valley 
Louisville  &  Nashvl. 
Minn.  S.P.  (Soo)5  .. 
Miss.  K.  Si  Texas  . 
Missouri  Pacific   .. 
New  York  Cent.&H. 
N.Y.  N.  Haven  &H. 
New  York  Ont.&W. 
Norfolk  «t  Western. 
Northern  Pacific   . . 
Pennsylvania    East 
and  West  Lines. . 
Phil,  and  Reading  . . 

Reading 

St,  Louis  &  San  F, , 
Seaboard  Air  Line, 
Southern     .. 
Southern  Paoifio 
Union  Pacific 
Wabash 


£ 

+  6,532 

+  •1339.100 
4- 92322,000 
4-  195,982 
3,6l« 
19.799 
107,482 
3,132 
2.3CI 
5.349 
7.757 


S  Includes  Wisconsin  Cenual,    •  Gross  earnings.    <  Surplus,    i  Deficit. 


NOTICES. 


IMPERIAL  JAPANESE  GOVERNMENT 

FOUR  PER  CENT.  STERLING  LOAN  OF  1910. 

NOTICE  IS  HEREBY  GIVEN  that  the  COUPONS 
due  1st  June,  1918,  will  be  PAID  on  that  date  between  the 
hours  of  11  and  1,  or  any  day  afterwards.  (Saturdays  excepted), 
between  the  hours  of  11  and  3,  at  the  Yokohama  Specie  Bank, 
Ltd.,  where  lists  may  be  obtained.  Coupons  must  be  left  three 
clear  days  for  e.xamination  prior  to  their  payment. 

For  the  Yokohama  Specie  Bank,  Ltd., 
Bishopsgate,  London,  E.C.2,  K.  TATSUMI,  Manager. 

17th   May,   1918. 


INDUSTRIAL   BANK  OF  JAPAN,   LIMITED 
FIVE  PER  CENT.  STERLINC  BONDS.  ^ 

NOTICE  IS  HEREBY  GIVEN"  that  tlic  COUPONS  due  Is 
June,  1918,  will  be  PAID  on  that  date  between  the  hours  of 
11  and  1,  or  any  day  afterwards  (Saturdays  excepted)  between  the 
hours  of  11  and  3,  at  the  Yokohama  Specie  Bank,  Ltd.,  where 
lists  may  be  obtained.  Coupons  must  be  left  three  clear  days  for 
examination  prior  to  their  payment. 

For  the  Yokohama  Specie  Bank,  Ltd., 

K.  TATSUMI.  Manager. 


Bishopsgate,  London,  E.C.2,  17th  May,  1918. 


BONDS   CANCELLED. 


IMPERIAL  JAPANESE  GOVERNMENT 

M  PER  CENT.  STERLING  LOANS  OF  1905. 

The  Yokohama  Specie  Bank,  Limited,  London,  announces  that 

f  135, 700  4J  per  cent.  Sterling  Bonds  of  the  1st  Series,  and 
124,'860  4J  per  cent.  Sterling  Bonds  of  the  2nd  Series,  have 
been  purchased  on  behalf  of  the  Imperial  Japanese  Government 
for  the  purpose  of  cancellation,   and  the  said   Bonds  are   now 

cancelled.  ,   ,     t^     j,  ..  ^ 

The  quantities  and  denominations  of  the  Bonds  so  cancelled  are 

the  following : —  „  „ 

First  Series—  Second  Series—  , 

4    of    /500  409   of    /200  S 

448    of     /:200  326   of    ;^100  r 

441    of    £100  523   of      ;f20 

London.  15th  May,  1918.  . 


Printed  by  the  St.  Ctimfnts  Pnrss,  Ltd.,  Portuga'  Street,  Kingsway,  London,  W.C,  for  the  Proprietor  of  The  Investors'  Review,  and  Published 


TIbe 


Jnveetots'  IRevfew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


Vol.  XLI.— No.  1,064.] 

NEW  SERIES. 


rRegistared  as  an 
L    Newspaper.    J 


SATURDAY,  MAY  25,  1918. 


[Price  6d. 


CONTENTS. 


Leading  Articles: — "Money,  Money,  Give  Us  Money"  —  The 
Report  of  the  Committee  on  Bank  Amalgamations  — 
Aspects  of  Company  Finance  —  Our  Foreign  Trade  in 
April  —  By-the-Way  War  Notes  —  Facts  from  Italy 
(pp.  495-7,  500-2  and  513). 

Passing  Events:  —  Select  Committee  Report  —  Sir  R. 
Kindersley  on  War  Savings  —  Increased  Season  Ticket 
Rates  —  Hamburg  Corporation's  Resolutions  —  Oceanic 
Steam  Navigation  —  Metropolitan  Carriage,  Wagon,  and 
Finance  —  Bank  of  Taiwan  —  East  Rand  Proprietary 
Mines  —  Rand  Colliery  Amalgamation  —  Tweefontein 
United  Collieries  —  French  Alsace-Lorraine  Claims  — 
Argentine  Labour  and  Wealth  —  Brazilian  Developments  — 
Belgium's  Resurrection  (pp.  497-500,  502  and  512). 

Insurance  News  :— Alliance  —  Sun  Office  —  Losses  at  Salonika 
—  Commercial  Union  —  "Old"  Equitable  Results  — 
Royal  —  Norwich  Union  Fire  (p.  503). 

Money  and  Credit  Notes  : — Money  Easy  and  Abundant  —  Bank 
Return  —  Treasury  Conference  to  Encourage  War  Bond 
Sales  —  Another  Australian  Loan  Impending  —  Quebec 
City's  Loan  Success  —  Eighth  Austrian  War  Loan  — 
Hamburg  and  Frankfort  Borrowing  —  Austrian  Currency 
Inflation  —  Foreign  E.Nchange  Movements  —  Palatine 
Bank's  Call  —  Silver  (pp.  504-6). 

The  Week's  Stock  Markets  (pp.  506-7). 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  of   the   Imperial 
Japanese  Government,  1899. 

-      TAIPEH,   FORMOSA. 


HEAD  OFFICE 


Amoy,  Batavia,  Bombay,  Canton,  Foochow,  Hankow,  Hongkongt 
Kuikiang,  Kobe,  New  Yoik,  Osaka,  Shanghai,  Singapore,  Swatow, 
Soerabaya,  Tokyo,  and  every  important  city  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


THE  YOKOHAMA   SPECIE   BANK.   LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1 8SO. 

Subscribed  Capital     ~.       ..        ..    Yen  48,000,000 

Capital  Paid  Up Yen  42,000,000 

Beserve  Fund         ..        ..  ..    Yen  22,100,000 

Head  Office:   YOKOHAMA. 
Branchfs  and  Agencigs  at 
Bombay.  Honolulu.  Newchwang.  Sbimonoseki. 

Buenos  Ayres.  Hong  Kong.  New  York.  Singapore. 

Calcutta.  Kobe.  Osaka.  Sourabaya. 

Changchun.  Los  Angeles.  Peking.  U^dner. 

Dairen  (Dalny).  Lyons.  Rangoon.  Tlentrin. 

Fengtien  (Mukden).       Manila  San  Francisco.  Tokyo. 

Hankow.  Nagasaki.  Seattle.  Tsinanfu. 

Harbin.  Shanghai.  Tsingtau. 

The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  transacts  General  Banking  Business.  ^ 

Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  application. 
London  Office:  7,  BISHOPSGATE,  E.C.i. 

K.  TATSIIMI,  Manager. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incokporatbd  itiSo. 

Authorised  and  Issued  Capital,  jTG.ooo.ooo. 

Paid-up  Capital,  1^2,000,000;  Reserve  Fund,  £2,000,000 ;  together   £4,000,000 

Reserve  IjiabiUty  of  Proprietors 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OFFICE   -        •        -        71.  GORNHILL,  LONDON,   E.O.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Australian 
States  and  Dominion  of  New  Zealand. 

fELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  are  received  tor  fixed  periods  on  terms  which  may  be  ascertamed 
OQ  application. 


Mining  News : — Aorora  West  —  New  Goch  —  Meyer  and 
Charlton  —  Roodepoort  United  Main  Reef  —  West  Rand 
Consolidated  —  Golden  Horse  Shoe  —  Anglo-Continental 
Mines  —  Waihi   Gold  (pp.  509-10). 

American  Business  Notes : — President  Wilson  on  War  Aims  — 
Huge  Naval  Estimates  —  Railway  Control  Difficulties  — 
Controlling  Food  Profiteers  —  Guaranty  Trust  Company's 
Estimate  of  U.S.A.  Wealth  (p.  511-12). 

Tea,  Oil,  and  Rubber: — Increasing  Stocks  (p.  512). 

Company  Meetings: — Eagle  Star  and  British  Dominions 
Insurance  —  Harrisons  and  Crosfield  —  Consolidated  Mines, 
Selection  —  Kepong  (Malay)  Rubber  (pp.  513-15). 

London  Produce  Markets  (pp.  507-8). 

Company  Results  in  Brief  (p.   508). 

Oilfields  Production  (p.  508). 

April  Rubber  Outputs  (p.  508-9). 

The  Week  in  Mines  (p    509). 

Letters  to  the  Editor  (p.  510). 

Public  Income  and  Expenditure  (p.  511). 

Dividends  Announced  (p.  512). 

Answers  to  Cot  respondents  (p.  513). 

Traffic  Returns  (p.  516). 

Notes  on  Books  (p.  516). 

Books  Received  (p.  516). 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office:  15,  Gracechurch  Street,  London,  E.C.  3. 


Capital  Authorised         

Capital  luued      

Capital  Paid  Up 

Reserve  Fund  (Undivided  Profits) 


£1,500,0(X) 

1,125,000 

562,500 

708,432 


Branches  t 

INDIA.   BURMAH.   CEYLON^    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS,    MAURITIUS. 


The  Bank  buys   and  lells  Bills  of  Exchange,   issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  Hast,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  current  mooounts  interest  is  allowed  at  a  percent,  per  annum  on 

daily  balances. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital  £4,000.000 

Paid-up  Capital 1.800,000 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mcndoza,  Concordia,  Bahia 
Blanca,  Cordoba,  Tucuman,  Paranfi,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires),  Boca  (Buenos  Aires),  Calle  Santa  F^  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires).  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agency),  Salio 
(Agency).  BRAZIL.  —  Rio  de  Janeiro,  Sao  Paulo,  Santos,  Per- 
nambuco,  Para,  Bahia,  Victoria,  Curityba,  Manaos  (Agency).  CHILI — 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  Hal6vy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.     Bills  negotiated, 

advanced  upon  or  sent  for  collection.— 7,  Princes  Street,  E.C.  2. 


UNION      BANK     OF     CANADA. 


Incorporated  1865. 


Head  Officii:  WINNIPEG. 


PAID-UP  CAPITAL $5,000,000 

Re5T   AND    UNUiVIDBD    PROFITS »3,6oo,ooo 

TOTAL   A55ETS    EXCBBD         1 143,000,000 

The  Bank  has  over  300  Branches  in  Canada,  and  Agents  in  the  principal 
cities  in  Amei*ioa.       General  Banking  Business  Conducted. 

Daposlts  Received  for  fixed  periods  at  favourable  ratas,  which  may  be 
ascertained  on  application  to 

London  Offloet :  6,  PRINCES  STREET.  E.a  2,  and  28.  HAVMMHSTi  t.W- 


Kew  Vark  Agency :  48.  Wall  Street 


494 


XTbe  5nve6tor6'  IRevtew. 


May  25,   igi8. 


BANKS. 


CHARTERED  BANK  OF  INDIA, 
AUSTRALIA,  AND  CHINA, 

38,  Bishopsgate,    London,  E.C.  2. 

Incorporated  by  Royal  Charter. 


Capital,  £1,200,000.     Reserve  Fund,  £2,000,000. 


Court  of  Directors. 


SIR  MONTAGU  CORNISH 

TURNER,  Chairman 
SIR    DUNCAN   CARMICIIAEL. 
THOMAS  CUTHBERTSON,  Esq. 
SIR  ALFRED  DENT,  K.C.M.G. 

IIanatfaM:T.  H.  WHITEHEAD  and  W.  E.  PRESTON. 
Sub-Manatfer:  J.  S.  BRUCE. 


NEVILLE 


WILLIAM       HENRY 

GOSCHEN,  Esq. 
The  Right    Hon.  LORD  GEORGE 

HAMILTON,  G.C.S.I. 
WILLIAM  FOOT  MITCHELL,  Esq. 
LEWIS  ALEXANDER  WALLACE, 
[Esq. 


Bankers : 

THK    BANK    OF    ENGLAND. 

THE    LONDON    CITY    AND    MIDLAND    BANK,    Limited. 

THE  LONDON  COUNTY,  WESTMINSTER  &  PARkS  BANK,  Limited. 

THE  NATIONAL  PROVINCIAL    &    UNION    BANK    OF    ENGLAND, 

Limited. 

THE    NATIONAL    BANK    OF   SCOTLAND,    Limited. 

The  Corporation  buy  and  receive  for  collection  Bills  of  Exchange,   grant 
Drafts  and  transact  general  banking  business  connected  with  the  East. 
DEPOSITS  OF  MONEY  are  received  for  fixed  periods  on  terms  which 
may  be    ascertained  on  application.       Interest  payable    half-yearly, 
30th  June  and  31st  December. 

THE   BANK   OF 
BRITISH   NORTH   AMERICA. 


Established  1836. 


INCORPORATED  by  ROYAL  CHARTER  1U0. 


,  E.C. 


'620,000. 


PAID-UP  CAPITAL     ..     £1,000,000.  RESERVE  FUND 

Head  Office  :-5,  GRACECHURCH  STREET,  LONDON, 
Court  0/  Directors. 
Lt..Col.F.  R.S.BALFOUR.  Lieut.  E.GEOFFREY  Hon.  A.  R.  MILLS,  MP. 
J.  H.  BRODIE.                           HOARE,R.N.V.K.     MaiorC.  W.TOMKINSON. 
J.  H.MAVNE  CAMPBELL.  F.  LUBBOCK.  G.    D.   WHATMAN. 

E.  A.  HOARE,  

Deposits  received  at  rates  which  may  be  obtained  on  application. 

Current  Accounts  opened. 
Coupons  purchased. 

ALL    KINDS   OF    BANKING    BUSINESS   TRANSACTED, 

THE  LONDOK  BANK  OF  AUSTRALIA,  LIMITED. 

Head  0£ce~7i,  Old  Broad  Street.  E.C. 

Subscribed  Capital ..   £1,276.747     10    O 

Paid  up  Capital 669,685      O    O 

Reserve  Fund  and  Undivided  Profits         ..  409,826       1     1 

Reserve  Liability  of  Proprietors       ,.         ..  606,962    10    0 

REMITTANCES  made  by  CABLE. 
DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 

Branches  and  Agents. 
BILLS  on  Australasia  NEGOTIATED  or  sent  for  collection. 
DEPOSITS  RECEIVED  for  periods  and  at  rates  which  may  be  asoMtakiad 

on  application,  and   Banking    Business   of    every  desonptifto    condaMed 

wikb  Australia. 


Zbc  3nve0tor0'  IReview. 

SCALE  OF  CHARGES  FOR  ADVERTISEMENTS. 


PROSPECTUSES, 

Full  Page £25 

Under  one  page,  at  per  inch,  1 

single  column 
Special  positions  by  arrangement. 


REPORTS    OF 

Minimum     ... 
Per  Column... 

COMPANIES' 

Whole  Page 
Half  Page   ... 
Quarter  Page 


COMPANY 


MEETINGS. 

£4      O 

6    11 

BALANCE-SHEETS. 

£15    15 

8       2 

4       2 


O 
O 


o 

6 

O 
6 

6 


DIVIDEND    NOTICES,    &C. 

Per  Inch      ...  ...  ...       £0   12     6 

BANKS    AND    INSURANCE    COMPANIES. 
Special  position  ...  ...  O  18    9 

Front    Page    (cover)   or  facing 

Money  Article,  per  inch      ...        £0  15    O 
Ordinary  position,  per  inch      ...  O  12    6 

Discount  for  Series.— 5%  for  Thirteen,  10%  for  Twenty-six, 
15%  for  Thirty-nine,  and  20%  for  Fifty-two. 

"  INVESTORS"  REVIEW,"    Nosfolk   Housi,  Nokfolk   Strzet,  Strand 

LONDOM,  W.C. 


INSURANCE. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its   Policyholders  in    1917  over 

£9,700,000 
or  over  £31,000  for  each  Working  Day. 

ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head  Office:  BARTHOLOMEW  LANE,  LONDON,  E.C.  2. 


ASSETS    EXCEED    £24,000,000. 


Chsilpman  i 
The    Hon.    N.    CHARLES    ROTHSCHILa 


The  operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  information  respecting 

ESTATE    DUTY   and 
CHILDREN'S   EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  application 
to  the  Head  Office  as  above, 
•P  to  any  of  the  Offices  op 
Agencies   of    the    Company. 

O.  MORGAN  OWEN,  General  Manager. 

A  PRACTICAL  PENSION  POLICY 
FOR    WOMEN    WORKERS. 

"  After    the    heat   and   turmoil  of  the   day. 
The  sheltered  haven  of  the  peaceful  years." 


ii 


A   leaflet  entitled 


AFTER 


f» 


giving  full  particulars  of  a  new   and   attractive 
scheme  will  be  sent  post  free  on  application  to  the 

NATIONAL    PROVIDENT   INSTITUTION, 

48  GRACECHURCH  STREET,  LONDON,  E.C.  3. 


NOTICE. 


Z%  DIPLOMATIC  DEBTOF  VENEZUELA,  1905. 

3%   CONSOLIDATED    EXTERNAL    DEBT   OF 
COLOMBIA. 


The  Council  of  Foreign  Bondholders  are  prepared,  until  the 
15th  June,  to  purchase  for  redemption  Bonds  of  the  above 
Loans  up  to  the  follouinn  prices,  so  far  as  the  funds  in  hand  will 
permit  : — 

Venexuelan  Bonds  at  63. 
Coiontbian  Bonds    at  S3. 

Bonds  oflered  for  Sale  should  be  lodged  with  the  Council 
through  a  Broker. 

JAMES  P.  COOPER, 
17,  Moorgate  Street,  London,  E.C. 2.  Secretary. 

22nd  May,  1918. 


^be  investors*  IRcvlew. 


Vol.  XLL— No.  1,064 

New  Series. 


SATURDAY,  MAY  25,   1918. 


CVeweTapo"')   PrJCC  6d. 


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Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


"  Money,    Money,    Give    Us    Money." 

Mr.  George  Sutton,  advertising  agent  for  the  Govern- 
inenit,  otherwise  "  Director  of  Publioiity,"  National 
War  Savings  Con'imittee,  was  well  inspired  in  writing 
to  the  Times  to  urge  every  crtditor  of  the  Govern- 
ment to  reinvest  in  War  Bonds  his  portion  of  the 
;£,"50, 000,000  odd  of  dividends  falling  to  be  paid  at  the 
beginning  of  next  month.  "It  is  a  matter  of  the 
utmost  moment  to  the  country,"  he  says,  "  that  as 
large  a  part  as  possible  of  that  sum  should  1m;  immedi- 
ately re-lent  for  the  purpose  of  winning  the  war."  That 
is  perfectly  true,  and  we  hope  e\erybody  who  can  will 
take  note  of  the  appeal  and  act  upon  it.  Unfortunately, 
however,  the  weight  of  taxation  is  now  so  heavy  ufKin 
the  majority  of  people  that  it  will  be  impossible  for  so 
many  as  should  to  spare  all  their  dividend  money. 
Some  of  them  still  have  interest  to  pay  on  part  of  the 
money  the)'  borrov\od  to  take  up  the  stock  they  sub- 
scribed for  v\'hen  the  loim  came  out,  others  have  the 
bigger  half  of  their  last  year's  income-tax  to  provide 
for  on  July  i,  and  so  on.  .Still,  all  who  have  the  means 
should  take  Mr.  Sutton's  advice,  for  the  war  has  to 
be  won,  and  cannot  be  won  without  money  as  well  as 
human  lives. 

Moreover,  the  sale  of  National  War  Bonds,  Bank  of 
E!ngland  issue,  continues  to  dwindle,  and  the  total 
produced  for  last  week,  ended  May  18,  was  only 
;^9, 439,000,  compared  with  the  _^'25,ooo,ooo  miinimum 
weekly  sum  asked  for.  There  were  968  fewer  applica- 
tions at  7,999,  but  llie  money  a^pplicd  for  was  ;^225,ooo 
larger,  and  the  total  rai.sed  to  date  is  ;£^697,909,ooo. 
This  represents  the  amount  applied  for  by  588,000  people 
— and  how  many  beyond  that  588,000  out  of  the  total 
population  are  earning  Hush  wages  and  have  money  to 
spare?  Does  the  Government  ever  ask  itself  ques- 
tions of  that  kind  and  try  to  realise  how  it  is  allowing 
the  spare,  or  easily  .sparable,  means  in  the  hands  of 
the  great  bulk  of  the  people  entirelv  to  escapye  its 
net  ? 

Of  the  Post  Office  issue  of  National  War  Bonds  the 
number  of  purchasers  for  the  week  preceding,  that  is, 
for  the  week  ended  nth  inst.,  was  down  795,  but  still 
numbered  19,905,  making  the  total  to  date  1,147,654. 
The  money  was  also  down  ;£^39,48o  to  ;^'409,ooo,  but 
that  addition  makes  the  total  receipts  to  date 
;^28, 545,000.  Thus  the  two  series  of  War  Bonds  have 
produced  to  the  dates  named  ;^726, 454,000. 


Then  the  War  Savings  Certificates  did  rather  well  in 
the  same  week  ejided  the  nth  inst.,  for  3,122,000  were 
sold,  raising  the  aggregate  number  of  15s.  6d.  certifi- 
cates thus  far  disposed  of  to  194,921,000,  which  means 
that  more  than  ;^  15 1,000, 000  has  been  in  this  way 
obtained  by  the  Treasury  for  war  purposes.  The 
aggregate  of  the  money  borrowed  since  last  year's 
"  spectacular  "  loan  thus  appears  to  be  about 
;^"'877, 500,000.  How  much  is  it,  reaUy?  The  Govern- 
ment might  try  frankness  with  the  nation  just  once  in 
a  way. 

For,  all  helps  notwithstanding,  the  Treasury  con- 
tinues to  flounder  in  a  quagmire  of  floating  debts. 
Current  outgoiaigs  last  week  were  ;^'54,6oo,ooo  on 
supply  services  alone,  and  the  total  payments,  includ- 
ing ;£^2, 253,000  of  interest  on  war  deibt  and  ^^'426, 000 
of  miscellaneous  payments,  were  ;^'57,279,ooo.  That 
is  to  say,  supply  services  alone  consumed  ;/{j'7,700,ooo 
a  day,  and  the  total  actual  payments  of  the  week  aver- 
aged about  ;^8, 1 40,000  a  day.  Again,  moreover,  the 
aggregate  overturn  was  heavy,  amounting  to 
yj'i 22,955,000,  or  ;^'i, 71 1,000  more  than  in  the  pre- 
vious week.  The  Government  had  to  sell  ;^66, 151,000 
of  Treasury  bills,  and  was  able  to  pay  off  only 
;!£^52, 038,000,  therefore  the  Treasury  bill  debt  was  in- 
creased by  ;^i4,o43,ooo,  and  now  stands  at 
;^986, 893^000.  Besides  this,  the  Government  had  to 
increase  by  ;^8, 000,000  its  debt  to  the  banks  on  float- 
ing loans  or  temporary  advances,  ;^'io, 000,000  of  which 
were  paid  off,  but  ;£a8,ooo,ooo  had  to  be  raised,  so  the 
total  of  this  inconvenient  form  of  debt  is  now  almost 
^95,500,000.    Where  does  it  lie?    Who  is  carrying  it? 

Besides  the  additional  moneys  obtained  in  these  two 
w  ays,  the  Government  al.so  procured  ^^20,579, 000  from 
other  war  debt  sources,  and  it  got  ^'8,885,000  also 
from  National  War  Bonds,  besides  ;^"i,8oo,ooo  from 
War  Savings  Certificates.  The  nett  addition  to  the 
debt  last  week  was  thus  a'bout  ;£'40,ooo,ooo.  .'Vmong 
the  items  of  expenditure,  the  "  depreciation  fund  "  is 
down  for  ;^"  1,000,000,  and  besides  the  Treasury  bills 
paid  off  there  was  ;£^2,383,ooo  of  other  war  debt  can- 
celled as  well  as  ;^io3,ooo  of  War  Loan  and  Ex- 
chequer Bonds.  From  actual  taxation  the  income  was 
only  ;^8,oo3,ooo,  the  lowest  seen  for  many  a  week, 
but  then  it  was  Whitsuntide.  .Altogether,  tihe  Trea- 
sury managed  to  .scrape  up  ;^6o3,ooo  more  than  it  had 
to  pay  out,  and  therefore  by  that  sum  Exchequer  bal- 
ances have  been  increased,  and  are  now  ^^14, 908, 000, 


496 


Zbc  investors'  IReview* 


Mav 


25,    lyio. 


compared  with  ;^22, 365,000  twelve  months  back.  It 
is  not  a  cheerful  recital  this,  but  since  better  cannot 
be,  we  must  go  on  in  hope,  trusting  that  the  war  may 
be  ended  sooner  than  looks  probable  on  the  surface  of 
things.  Even  so  the  Government  mav  before  long  have 
to  fix  the  spending  limits  for  the  wealthy  of  all  classes, 
and  appropriate  all  above  that  for  the  State,  if  every- 
thing else  fails  it.     The  war  has  got  to  be  won. 


The  Report  of  the  Committee  on 
Bank  Amalgamations. 

The  Treasury  Committee  on  Bank  Amalgamations 
has  completed  its  inquiries  and  issued  its  report  with 
commendable  promptitude.  As  we  supposed  at  the 
time  of  this  appointment,  no  attempt  has  been  made  to 
upset  the  arrangements  for  the  amalgamations  recently 
entered  upon,  but  the  report  has  a  good  deal  to  sav 
about  restricting  these  amalgamations  in  the  future,  and 
it  is  pertinently  .said.  There  is,  for  example,  the  ques- 
tion of  duplication  of  branches,  and,  as  the  following 
table  illustrates,  it  can  hardly  be  possible  that  this 
duplication  never  implies  redundancy.  It  is  this  rather 
than  extension  of  area  which  results  from  the  recent 
fusion  of  big  banks,  but  that  is  a  sort  of  evil  which 
tends  to  cure  itself.  Duplicate  branches  can  be  closed, 
and  doubtless  will  gradually  be  so. 


I  National  ir'rovincial 

I  Union  of  London  and  Smiths 
jLon.  County  &  Westminster 

(Parr's 

J  London  City  and  Midland. . 
^  ( London  Joint  Stock 


London 
Branches 


26 

31 
110 

35 
107 

41 


Provincial 
Branches 


251 

78 
180 
160 

419 
109 


Foreign 
Agencies. 


31 
150 
400 

35 

850 

70 


Another  matter  of  much  more  importance  is  the 
opportunity  taken  by  amalgamations  to  reduce  the 
liability  of  the  shareholders.  We  pointed  these  changes 
out  at  the  time,  and  the  Committee  emphasises  them. 
The  reduction  takes  place,  as  a  rule,  either  without  any 
or  with  but  an  insignificant  increase  in  the  paid-up 
capital,  and  we  have  always  contended  that  the  capitali- 
sation of  our  banks  has  never  been  generous.  The 
actual  cash  paid  up  is  without  any  exception  small — 
often  much  too  small — for  the  liabilities  assumed.  The 
Committee  points  out,  for  instance,  that  the  amalgama- 
tion of  the  National  Provincial  Bank  of  England  with 
the  Union  of  London  and  Smiths  Bank  resulted  in  a 
reduction  of  over  ;^i  ,000,000,  or  16  per  cent.,  in  the  total 
paid-up  capital,  and  of  o\  er  ^^9,006,000,  or  over  48  per 
cent.,  in  the  uncalled  liability  of  the  Union  Bank  share- 
holders. 

That  was  the  most  conspicuous  illustration  of  the 
way  the  thing  shaped,  but  the  amalgamation  of  Parr's 
with  the  London  County  and  Westminster,  while  it 
added  ;^243,ooo  to  the  total  paid-up  capital,  brought 
about  a  reduction  of  nearly  ;^i, 770,000,  or  17  per  cent., 
in  the  uncalled  liability  of  Parr's  shareholders.  More 
striking  still  was  the  change  affected  by  the  amalgama- 
tion of  the  London  City  and  Midland  with  the  London 
Joint  Stock,  by  whkh  a  reduction  of  nearly  ;£ri, 000,000 
was  effected  in  the  total  paid-up  capital,  and  of  more 
than  ^9,000,000,  or  over  50  per  cent.,  in  the  uncalled 
liability  of  Joint  Stock  Bank  shareholders. 

There  is  no  doubt  that  bere  is  the  weak  spot  in  all 
amalgamations.  We  have  no  dread  of  a  "  Mone\ 
Trust"  that  some  speak  about,  especially  if  we  retaiii 
anything  of  our  freedom  in  commerce,  as  we  shall,  but 
we  do  fear  the  effects  of  our  banking  system  upon  the 
stability  of  the  nation's  credit  should  at  any  time  one 
of  these  large  banks  fall  into  difficulties  or  become  in 
any  sense  an  object  of  su-spkion.  Shareholders  go  on 
serenely,  as  if  the  liability,  callable  or  ultimate,  was 
not  worth  consideration.  Parsons,  spinsters,  widows, 
doctors,  and  lawyers— the  poor  and  the  unwise  of  all 
descriptions — are  to  be  found  upon  the  share  lists  of 
banks,  and  often  holding  shares  the  liability  which 
they  would  be  totally  unable  to  meet.  We  should  ha\-e 
been  far  more  cordially  favourable  to  the  bank  amal- 
gamations which  have  taken  place  had  the  opportunitv 
been  seized  to  change  this  position  at  least  to  some  ex- 


tent. Fresh  capital  should  have  been  called  up  at  the 
same  time  that  the  remote-looking  liabilities  were 
written  off,  and  the  banks  would  have  been  all  the 
stronger  for  the  change.  We  recognise  fully  the  ex- 
pediency of  these  fusions  at  a  time  like  this.  The 
change  was  as  prudent  as  it  was  inevitable.  But  at  the 
same  time,  nothing  possible  should  be  neglected  that 
is  calculated  to  strengthen  the  power  of  our  credit- 
generating  banks  to  stand  firm  as  lighthouses  in  ail 
weathers,  and  we  regret  that  they  have  not  even  in- 
creased their  reserves.  It  was  a  pity  they  did  not,  but 
the  omission  is  remediable,  if  dividends  are  kept 
moderate  and  all  surpluses  piled  away. 


Aspects    of    Company    Finance. 

Prominent  present-day  features  of  company  opera- 
tions and  finance  are  amalgamations  and  absorptions  on 
the  one  hand,  the  bonus  distributions  from  reserve  on 
the  other.  Very  often  these  transactions  involve  large 
and  even  huge  amounts.  W'ith  these  things  in  them- 
selves it  is  not  our  present  purpose  to  deal.  Rather  wc 
desire  to  attract  attention  to  two  consequences  or 
aspects  which  are  of  serious  importance  ;  are  sometimes, 
wc  have  reason  to  know,  not  fully  regarded  in  advance, 
and  are  apt  to  give  rise,  not  only  to  doubt  and  trouble, 
but  to  what  appears  to  us  to  be  little  if  at  all  short  of 
inju.stice.  We  refer  to  the  right  of  life  tenants  to 
obtain  in  certain  circumstances  the  bonus  distribution 
even  though  it  may  take  the  form  of  shares,  and  the 
matter  of  income-tax  and  super  tax. 

It  is  very  common  for  a  strong  and  successful  com- 
pany, with  large  undi\ided  profits  or  reserves,  or  both, 
to  resolve  to  distribute  part  of  these  in  the  form  of  a 
bonus  dividend  or  in  the  form  of  bonus  shares,  or  it 
may  be  in  extinguishing  uncalled  liability  on  the  exist- 
ing shares.  At  the  present  moment  several  very  im- 
portant companies  are  carrying  through  such  schemes. 
We  may  distinguish  the  following  operations  or  ways 
of  going  about  the  operation. 

1.  A  bonus  dividend  payable  in  cash,  with  no  option 
of  any  kind  about  it,  and  nothing  ulterior  in  view.  The 
shareholders  are  entitled  to  the  dividend,  and  must  take 
it.  This  reduces  the  company's  funds  by  the  full 
amount  of  the  dividend,  and  it  is  intended  so  to  do. 
The  dividend  may  be  paid  either  less  tax  or  free  of  tax. 

2.  When  there  is  uncalled  liability  on  the  shares,  a 
call  thereof,  and  at  the  same  time  a  bonus  dividend  of 
equal  amount  per  share,  free  of  tax.  Again  the  share- 
holders have  no  option.  They  must  submit  to  both 
parts  of  the  transaction  or  to  both  transactions.  The 
company's  funds  are  not  reduced,  but  remain  exactly 
as  they  were. 

3.  An  offer  of  new  shares  to  the  members  in  propor- 
tion to  their  existing  holdings  at  a  certain  price,  usually 
par,  and  the  simultaneous  declaration  of  a  bonus  divi- 
dend of  equal  amount,  free  of  tax.  Here  the  share- 
holders have  an  option.  No  shareholder  can  be  com- 
pelled to  extend  his  holding,  not  even  though,  as  is 
usual,  the  new  shares  are  issued  as  fully  paid.  In  the 
case  of  some  trustees  there  may  even  be  doubt  whether 
they  are  legally  entitled  to  do  .so.  ."Vt  the  same  time  the 
circumstances  may  be  such  that  no  sane  man,  as  it  has 
been  phrased,  w-ou1d  dream  of  taking  the  cash  dividend 
instead  of  the  new  shares.  The  shares  may  be  issued 
at  par,  but  may  in  the  market  be  worth  200  or  300  per 
cent.  more.  .'M.so  it  may  have  been  contemplated  from 
the  outset  that  the  shares  would  be  taken  all  round.  It 
may  even  be  that,  if  all  were  to  demand  cash,  the  com- 
pany could  not  meet  the  demand  except  by  borrowing ; 
for  no  matter  how  sound  and  prosperous  the  company, 
or  how  large  the  reserves,  these  may  be  in  the  business. 
Here  again,  therefore,  it  is  contemplated  that  the  funds 
shall  not  actually  be  reduced  when  the  operation  is 
completed. 

4.  Then,  finally,  there  is  a  fourth  way  in  which,  as 
in  No.  I,  there  is  no  option  given,  but  for  the  opposite 
reason,  namely,  that  the  only  offer  is  of  new  shares. 
The  way  this  is  gone  about  is  by  taking  power  in  the 
company's  articles  to  capitalise  profits,  then  to  exercise 


May  25,   1918. 


Xlbe  Jnvestovs'  IReview. 


497 


that  power  by  capitalising,  say,  ;^'ioo,ooo  of  accumu- 
lated reserve  profits,  and  issuing  new  shares,  fully  paid 
up,  to  represent  that  sum,  the  issue  being  at  par,  and 
in  proportion  to  existing  holdings.  There  is  no  option, 
no  liability,  and  no  reduction  of  finances. 

Now  we  pass  to  a  different  kind  of  case,  but  one  also 
which  we  require  to  state,  as  it  also  raises  the  questions 
to  which  we  have  referred.  It  is  convenient  to  state  it  in 
the  form  of  a  concrete  instance  at  present  being  carried 
through.  We  see  that  a  large  ."Vmerican  mortgage 
company  is  buying  up  a  smaller  similar  company.  The 
acquisition  is  to  be  carried  through  by  the  purchase  of 
the  shares.  The  purchasing  company  pays  each 
holder  of  shares  in  the  other  company  par  value,  but 
the  holders  receive  from  their  own  old  company,  as  the 
final  payments  from  its  till,  not  only  .a  year's  dividend, 
but  also  a  bonus  dividend,  free  of  tax,  equal  to  75  per 
cent,  of  the  par  value  of  the  shares.  This  means  that 
each  shareholder  in  the  selling  company  gets  (in  addi- 
tion to  his  dividend  for  the  closing  year)  ;^i  15s.,  or, 
allowing  for  tax  at  5s.,  ;£,2  per  ;£i  of  his  holding,  half 
being  drawn  from  each  of  the  two  companies. 

Now  we  come  to  our  questions. 

First,  as  to  life  tenants.  It  is  possible  that  opinions 
may  differ  on  the  question  whether  it  is  fair  or  reason- 
able that,  in  the  case  of  settled  shares,  a  life  tenant 
should  be  allowed  to  receive  these  bonus  distributions 
whatever  form  they  may  take.  Probably  on  the  legal 
aspect  of  the  matter  we  are  about  right  in  saying  that, 
without  prejudice  to  the  charming  uncertainty  of  the 
law,  the  strong  probability,  approaching  indeed  to  cer- 
tainty, is  that  a  life  tenant  will  get  the  whole  benefit  if 
cash  must  be  taken  without  option,  and  will  get  nothing 
but  the  future  dividends  of  the  new  shares  if  shares 
must  be  taken  without  option  ;  and  that  when  there  is  an 
option,  real  or  so-called,  the  chances  are  against  the 
life  tenant,  but  one  can  never  be  sure.  In  one  such 
case  it  has  just  been  held  that  the  life  tenant  shall  get 
the  shares  up  to  the  amount  of  what  the  cash  dividend 
would  have  been.  Of  course,  the  circumstances  may 
vary  enormously.  The  life  tenancy  may  have  been  in 
iorce  for  a  long  time,  and  all  the  accumulated  profits 
may  have  been  made  during  that  time.  On  the  other 
hand,  they  may  all  have  been  made  in  the  lifetime  of 
the  testator.  Take  the  transfer  case  last  mentioned.  A 
life  tenancy  may  have  come  into  being  last  year  and 
may  terminate  immediately,  yet,  as  we  understand  it, 
the  life  tenant  shall  take  what  is  really  one-half  of  the 
total  value  of  the  investment.  It  is  difficult  to  see  that 
any  method  which  may  lead  to  such  a  result  has  any- 
thing to  recommend  it.  If  the  purchasing  company  had 
taken  all  the  assets,  and  had  paid  the  ;^i  15s.  as  price 
for  the  shares,  it  could  not  have  happened. 

Second,  as  to  taxation.  We  assume  that  all  the 
profits  out  of  which  the  distribution  is  made  have  paid 
income-tax,  and  so  there  can  be  no  suggestion  of 
liability  on  the  part  of  the  shareholders  for  income-tax 
on  the  distribution.  But  that  is,  of  course,  not  an  end 
of  it.  Two  things  may  ari.se,  namely,  the  effects  of  the 
distribution  (i)  as  affecting  income-tax  on  the  receivers' 
other  income  ;  and  (2)  as  attracting  super  tax  on  the 
whole  income,  including  the  distribution.  If  a  bonus 
dividend  only  is  declared,  or  if,  when  there  is  an  option, 
the  dividend  is  accepted,  the  case  is  probably  past  pray- 
ing for.  Up  goes  the  total  income,  and  the  consequences 
may  be  (i)  the  loss  of  exemption  ;  (2)  the  loss  or  cur- 
tailment of  abatements  ;  (3)  increase  of  rates  of  tax 
on  earned  and  unearned  income  ;  and  (4)  super  tax  in- 
curred. If,  on  the  other  hand,  there  is  no  option,  but 
shares  only,  it  is  equally  clear  the  other  way.  The 
shares  are  not  income,  and  the  tax  position  of  each 
shareholder  is  unaltered.  The  really  interesting  case 
is  when  there  is  an  "  option  "  and  shares  are  taken. 
Then  there  is  at  least  a  pretty  question.  But  when  a 
life  tenant  gets  anything  as  part  of  his  or  her  limited 
estate  or  interest,  it  is  diflicult  to  see  how  it  (whether 
cash  or  shares)  can  be  other  than  income  for  all  pur- 
poses,   including   taxation. 

We  conclude  with  three  observations  or  questions. 
On  the  tax  question  is  there,  for  tax  liability,  any 
relevancy  in  the  consideration  whether  the  new  shares 


would  have  been  capital  or  income  under  a  settlement? 
If  shares  are  to  be  reckoned  as  income,  then  at  what 
price  or  figure?  Is  it  to  be  market  value?  or  par?  or 
the  amount  of  the  dividend  which  might  have  been 
taken?  These  last  two  are  not  necessarily  the  same, 
for  in  stating  the  last  it  may  be  proper  to  add  in  the 
tax,  the  dividend  having  been  declared  free  of  tax. 
Finally,  we  quite  see  that  there  may  be  cases  in  which 
shareholders  may  benefit  by  the  shares  being  reckoned 
as  income,  namely,  when,  even  if  that  be  done,  their 
tax  position  is  not  altered,  having  regard  to  the  steps 
in  the  existing  scale  of  tax.  Thus  a  holder  who  was, 
and  continues,  under  the  ;^i30  exemption  figure,  would 
apply  for  repayment  of  tax  on  the  "  tax-free  " 
dividend. 

But,  broadly,  we  do  not  doubt  that  the  proper  way  is 
to  offer  shares  only,  thus  pre\enting  life  tenants  scor- 
ing unfair  advantages,  and  avoiding  (not  evading)  un- 
called-for taxation  claims. 


Passing   Events. 


There  is  plenty  of  food  for  thought  in  the  third 
report  (of  Session  1918)  from  the  Select  Committee 
on  National  Expenditure,  which  has  just  been  issued, 
and  we  hope  it  will  not  be  pigeon-holed  until  some  of 
the  more  important  points  raised  in  it  have  been 
thoroughly  discussed  in  Parliament.  So  far  as  we  are 
able  to  judge,  the  Committee  and  the  sectional  sub- 
committees have  attacked  the  Augean  stables  with  con- 
spicuous energy  and  ability,  but  unless  the  departments 
concerned  are  arraigned  in  the  House  of  Commons  we 
have  not  much  hope  that  any  substantial  reforms  will 
be  effected.  Such  reports  as  this  may  give  some  of  the 
more  hardened  offenders  a  bad  quarter  of  an  hour,  but 
they  soon  get  over  it,  and  things  drift  along  just  as 
they  were  before.  Take  the  case  of  the  War  Office,  for 
instance,  in  their  second  report  of  1917  the  Committee 
pointed  out  that  the  number  of  military  officers  serving 
in  the  War  Office  in  August,  1914,  was  218.  During 
the  two  following  years  of  rapid  expansion  of  the  .\rmy 
it  was  increased  to  588.  But  by  August,  1917,  it  had 
risen  to  1,344,  3"^'  '^^t  month  it  was  1,516,  although 
in  the  meantime  277  officers  have  been  transferred  to 
the  Air  Ministry.  The  total  number  employed  was 
therefore  1,793,  '"  spite  of  the  fact  that  all  the  work 
connected  with  recruiting  has  been  transferred  to  the 
Ministry  df  National  Service,  and  the  Committee  recom- 
mended that  "  a  systematic  inquiry  should  be  made 
from  time  to  time  with  a  view  to  eliminating  officers 
whose  employment,  owing  to  change  of  circumstances 
or  other  reasons,  is  found  to  be  superfluous."  This 
recommendation  was  accepted  by  the  Government,  but 
nothing  whatever  has  been  effected,  and  the  Com- 
mittee express  their  "  regret  that  the  matter  has  been 
dealt  with  by  the  War  OflRce  in  so  unsatisfactory  a 
manner."  We  have  little  doubt  that  the  position  will 
Ik?  the  same  12  months  hence  unless  Parliament  gives 
a  pretty  clear  indication  that  it  meant  business  when 
it  appointed  this  Select  Committee. 


A  good  deal  of  controversy  has  arisen  with  regard 
to  the  Committee's  remarks  on  the  question  of  the 
gd.  loaf — technical  points  on  which  we  are  not  com- 
petent to  express  an  opinion.  The  Committee  state 
that  the  subsidy  to  millers  and  bakers  is  now  estimated 
to  cost  ;^40,ooo,ooc  a  year,  and  they  say  "  it  is  to  be 
regretted  that  the  effect  (of  fixing  the  loaf  at  gd.)  was 
not  fully  explored  beforehand,  as  a  complete  examina- 
tion of  the  system  o£  bread  suppjy  in  the  country  might 
have  led  to  a  very  large  reduction  of  the  subsidy." 
Roughly  speaking,  four-fifths  of  the  bread  is  made  by 
one-tenth  of  the  bakers,  and  while  the.se  Jarge,  effici- 
ent bakeries  are  reaping  excessive  profits  owing  to 
the  price  fixed  for  flour,  the  small  establishments  are 
ccntinuaJly  pressing  for  leave  to  sell  bread  at  a  price 
above  gd.  If  the  price  of  flour  could  be  raised  .vS.  per 
sack,  which  the  Committee  think  is  quite  practicable, 
vvithout  generally  increasing  the  cost  of  the  loaf  to 
the     consumer,   the     subsidy     would    be    reduced    by 


498 


tTbe  Jnvestoce'  IReview. 


Mav  25,    1918. 


;^io,ooo,ooo.  At  the  same  lime,  in  certain  of  the 
smaller  and  more  remote  centres  of  population  the  cost 
of  the  loaf  is  ^d.  to  i^d.  above  the  average,  but  thi.s 
might  be  neutralised  by  a  .system  of  carriage  paid 
delivery  of  flour.  Another  point  demanding  attention 
is  the  wide  dis.parity  between  the  price  of  grain  for 
milling  purposes  and  the  hiiigher  price  which  feeding 
stuffs  command  in  the  miarket.  This  di.sparity  offers 
great  temptation  to  the  farmer  to  feed  his  ■s.tock  on 
good  grain,  and  is  another  illustration  of  the  fact  thai 
when  the  natural  laws  of  supply  and  demand  are 
interfered  with,  control  must  be  exercised  in  ever- 
widening  circles. 


In  dealing  with  the  Government's  control  of  the  rail- 
ways, the  Committee  mention  the  interesting  fact  that 
last  year  the  Exchequer  paid  the  companies  a  total  of 
;^25, 1 52,000,  but  there  is  reason  to  believe  that  if 
Government  traffic  had  to  be  separately  charged,  the 
s.ums  payable  by  the  State  would  probably  be  greater 
rather  than  less  than  those  now-  j>aid.  Had  prices  not 
risen,  and  bad  wages  remained  stationary,  the  State- 
would  have  made  an  excellent  bargain  with  the  rail- 
ways in  securing  the  free  carriage  of  all  its  traffic  in 
return  for  a  guarantee  of  pre-war  nett  receipts.  But 
the  additional  wa:r  wage  now  amounts  to  255.  per 
week,  and  the  total  increase  in  the  wages  biU  is  now 
about  ;^47,ooo,ooo,  of  which  the  companies  have  to 
find  only  2^  per  cent.  Cons.equenitJy  the  sums  payable 
by  the  Exchequer  will  be  considerably  larger  in  future, 
in  addition  to  which  there  will  be  arrears  of  mainten- 
ance and  other  liabilities  to  ibe  made  good.  Since  the 
companies  are  secured  against  loss,  and  their  manage- 
ment remains  in  the  hands  of  their  former  officials, 
there  is  an  obviious  danger  of  a  relaxation  of  control 
and  a  consequent  increase  of  cost.  A  sub-committee 
made  careful  inquiry  into  this  asipect  of  the  matter,  and 
it  is  .satisfactory  to  learn  that  no  reasons  were  found 
to  conclude  that  such  results  have  occurred.  The 
danger,  indeed,  comes  from  the  other  side.  Govern- 
ment Departments  having  the  right  of  transit  for  men 
and  goods  without  a  separate  charge  in  each  case,  may 
make  an  excessive  use  of  the  railways,  with  a  corre- 
sponding increase  in  working  costs  and  of  the  lump 
sum  payable  by  the  State,  but  the  Committee  signifi- 
cantly remai^k  that  this  "is  a  matter  on  which  it  is 
difficult  to  obtain  any   trustworthy  evidence." 


So  much  publicity  has  been  given  to  the  fiasco  of 
the  projected  school  of  aerial  gunnery  at  Loch  Doon, 
Ayrshire,  that  we  need  do  little  more  than  mention  that 
the  story  is  set  out  fully  in  the  Committee's  report, 
and  every  word  of  it  deserves  to  be  read.  Over  half 
a  million,  "  so  far  as  at  present  ascertained,"  was  spent 
on  the  project,  which  was  estimated  in  August,  1916, 
to  cost  ;^'i 50,000,  and  the  whole  scheme  was  sum- 
marily abandoned  at  the  beginning  of  this  vear.  Loc-h 
Doon  ' '  will  be  rememibered  as  the  scene  of  one  of  the 
most  striking  instances  of  wasted  expenditure  (that  our 
records  can  show."  Poor  "Banks  and  Braes  of 
Bonnie  Doon  "  !  Let  us  pass  to  something  more 
amusing.  The  National  War  Aims  Committee  was 
formed  in  June  last  on  a  private  basis,  but  the  War 
Cabinet  decided  in  October  to  take  it  over,  and  the 
money  found  by  voluntary  subscribers,  amounting  to 
about  ;^9,ooo,  was  refunded  to  them  by  the  Govern- 
ment. "  We  question  the  propriety  of  this  repay- 
ment," say  the  Committee,  and  most  people  will  agree 
with  them.,  but  Government  by  "  stunts  "  has  neces- 
sarily curious  methods.  It  was  to  be  on  a  lordly  scale, 
and  the  expenditure  for  the  six  months  to  March  31 
was  estimated  at  ;^i  18,860.  Alas!  only  ;^28,o6o 
could  be  spent  in  the  time,  but  that  is  exclusive  of  rent, 
lighting,  heating,  &c.,  while  several  of  the  salaried 
posts  had  not  been  filled  at  the  end  of  the  financial 
year.  However,  the  editor-in-chief  receives  ;^i,5oo  a 
year,  and  there  are  eight  other  officials  drawing  from 
;^i,ooo  down  to  £300  a  year.  But  when  away  from 
home  they  get  £1  a  day  subsistence  allowance,  rail- 
way fares,  and  a  fee  for  each  meeting.  The  campaign 
in  each  constituency  usually  lasts  about  four  w^eks,  so 


the  next  bill  will  no  doubt  be  nearer  the  projected 
mark.  V'es ;  there  is  quite  a  lot  of  "  fine  confused 
feeding  "  in  this  third  report  of  the  Committee  on 
.N'ational  Expenditure. 

Sir  Robert  Kindersley  has  written  to  all  the  pa(x;rs 
to  show   how    splendid  has   lx;en   the  money-gathering 
results  of  the  campaign  led  by  him  through  the  War 
Saving     Committees    established    everywhere    in     the 
country.     He  says  that,  measured  by  the  sales  of  War 
Savings   certificates  and    Post   Office    bonds,    and    the 
increase    in  the  deposits  over   the   withdrawals  in   the 
Post  Office   and  Trustee  Savings  Banks,  the   average 
monthly  contribution  of  the  public  to  the  war  was  in 
the  last  quarter  of  1917  ;^i2,055,ooo,  and  certainly,  as 
far  as  it   goes,    that  is  satisfactory — only  it  does  not 
amount   to  two  days'   war  expenditure.      His    further 
elaboration  of  the  facts,  which  he  puts  in  tabular  form, 
does  not  console  us  very  much,  although  the  display  is 
just  encouraging  enough  to  lead  to  the  inference  that 
much  more  might  be  done  if  the  people   were  treated 
not  with  the  sanctimoniousness  of  a  sectary,  but  with 
human  nature  and  common  .sense.     Here  is  Sir  Rol>ert's 
table   showing    the  cash   receipts  of  each  of  the    four 
months  ended  with  April  this  year.     The  March  figures 
are  the  biggest  because  they   included  the   receipts  of 
the  "Business   Men's  Week,"  as  it  was  called,    and, 
therefore,  though  big  are  lamentably  poor.     Sir  Robert 
adds  that  when  the  war  began  there  were  only  345,100 
holders  of  British  Government  securities  in  this  country, 
and    to-day    there   are    in    round    numbers    16,750,000 
holders  of  the  various  ty|3es,    viz.,  through  the   Bank 
of  England  ;^2,228,300,  through  the  Post  Office  issue 
of  National  War  Bonds  ;£"4,ooo,ooo,  and  through  the 
holders    of    War     Savings    certificates    ;^io, 500,000. 
There  are  also  11,000,000  accounts  in  the  Post  Office 
Savings   Bank  and   2,047,000   in   the    Trustee  Savings 
Banks.     Is  that  all;  can  nothing  more  be  done?     VVe 
want  infinitely  more  than  this.     Sir  Robert  Kindersley 
and  his  committees  will  have  to  wake  up  to  the  truth. 


— 

War 
Savings 
Certifi- 
cates. 

Post  Office 
Bonds. 

Post  Office, 

&  Trustee 

Savings 

Banks. 

Total 

• 

January      

February  

March    

April 

£ 
10,158,478 

8,382,288 
14.423,676 

9.232,563 

5.076,000 
2,858,000 
5.393,000 
2,745.000 

£ 

1.572.509 

2,434.526 

929,264 

2,000,000 

£ 

16,806,987 

13,674.814 
20,745,940 

13.977.563 

Last  week  committed  this  journal  to  an  approval  of 
the  action  of  the  Government  in  raising  the  price  of 
season  tickets  from  10  to  20  per  cent.  In  the  general 
sense  that  approval  stands  now,  but  we  .saw  in  last 
Tuesday's  Daily  Chronicle  a  letter  from  a  correspon- 
dent, who  pointed  out  that  the  whole  story  was  not 
made  public.  Had  a  mere  clean  advance  of  to  to  15 
per  cent,  been  decreed  there  would  have  Ijecn 
grumbling,  and  in  many  cases  where  the  railroads  had 
laid  themselves  out  with  special  zeal  to  tempt  people 
logo  and  li\e  in  the  coimtry,  the  grumblers  would  ha\e 
had  genuine  cause  for  their  discontent,  but  still  a  sense 
of  patriotism  would  have  induced  them  to  accept  the 
inevitable.  It  is  iiot  a  clean  advance,  however,  which 
has  taken  place,  for  under  the  old  arrangements  two 
of  a  family  living  in  the  same  house  and  using  season 
tickets  got  a  return  of  10  per  cent,  on  the  regular  price, 
and  to  three  of  a  family  the  reduction  was  15  per  cent. 
Season  tickets  were  also  issued  at  low  rates  to  the 
wives  of  householders  to  be  used  under  certain  limits 
and  restrictions.  Now,  .so  this  c\)rrespondent  .says, 
the  whole  of  the.se  allowances  have  been  swept  aside, 
and  the  full  price  put  upon  every  ticket  taken  out  plus 
the  10  or  15  per  cent,  added  by  the  latest  decision  of 
the  Government.  This  means  that  the  prices  of  many 
tickets  are  raised  by  20  to  25  per  cent.,  and  .some 
probably  by  more  than  that.  That  is  not  fair  dealing 
on  the  part  of  the  Government.  It  is  not  on  the  square, 
and  excites  disgust  almost  more  than  resentment. 


1 


The  Hamburg  Corporation  is  said  to  have  passed  by 
a  great  majority,  the  Socialists  alone  resisting,  a  .scries 


May  25,   1918. 


Zbc  Jnveetors'  IReview^ 


499 


of  resolutions  which  are  worth  caUiny  to  mind  as  proof 
that  even  the  commercial  mind  of  Germany  has  not 
yet  emerged  from  its  hallucinations.  These  resolutions 
are  framed  in  \iew  of  "  the  empire's  financial  situation 
and  the  position  of  the  Federal  States  composing  the 
empire,  which  are  sorely  tried  by  war."  So  the  Cor- 
poration of  Hamburg  demands  that  peace  shall  not  be 
concluded  except  satisfactory  guarantees  are  given  that 
"  sufficient  war  indemnity  shall  be  wrung  from  our 
enemies,"  for  which  indemnity  "  the  guaranteed 
delivery  of  raw  materials  may  eventually  be  sub- 
stituted." Also  the  formation  of  great  colonial 
possessions  entirely  corresponding  to  Germany's  needs 
is  demanded,  and  "  an  effective  guarantee  of  the  just 
(German  claims  on  foreign  countries,  together  with  the 
restoration  of  all  rights  stipulated  by  contracts  relating 
to  landed  property,  concessions,  &c.,  appropriated 
during  the  war  in  enemy  foreign  countries."  The 
restoration  of  German  trade  by  the  defeat  of  all  possible 
efforts  of  the  enemy  to  boycott  Germany,  and  an 
adequate  guarantee  for  the  free  and  imrestricted  traffic 
of  German  ships  on  all  seas,  and  particularly  the 
granting  of  full  equality  to  these  ships  in  all  enemy 
ports,  are  also  modestly  stipulated  for.  It  will  be  seen 
that  these  worthy  traffickers  in  Hamburg  ha\  e  not  erred 
on  the  side  of  the  modesty  of  their  pretensions,  but  they 
will  come  off  their  perch  before  long.  To  be  wilfully 
ignorant  of  its  crimes  has  its  penalties,  and  probably 
the  Hamburg  municipals  do  not  yet  know  that  in 
America  there  is  German  property  estimated  to  be  worth 
;£■  4.00,000,000,  which  the  Official  Controller  thereof  has 
announced  his  intention  to  keep  for  America.  "  No 
restitution  will  be  made  when  the  war  ends,"  he 
declares,  and  that  is  only  one  example  of  what 
Germany's  deliberate  provocation  of  the  war  and 
degraded  pursuit  of  robbery  and  crime  have  brought 
uix)n  the  German  people,  Nor  will  Hamburg  merchants 
find  it  easy  to  return  to  the  ocean  after  the  war,  just 
as  if  no  attempt  had  been  made  by  the  Prussian  brute 
to  destroy  the  shipping,  no  matter  at  what  cruelty  to 
human  beings,  of  all  the  nations  on  earth,  also  in 
further  pursuit  of  its  infamous  designs.  A  people  so 
base,  so  crime-stained,  will  not  find  the  sailors  vvho 
understand  the  chivalry  and  comradeship  of  the  ocean 
ready  to  welcome  them  back  again  to  the  "freedom 
of  the  seas. 


Last  year  was  not  so  prosperous  as  1916  for  the 
Oceanic  Steam  Navigation  Co.,  Ltd.  (White  Star  Line), 
no  d'oubt  partly  owing  to  the  increased  excess  profits 
duty,  and  to  the  Government's  requisitioning  scheme. 
After  allowing  for  excess  duty  the  profits  amounted  to 
;^i,ig2,ooo,  or  ;^930,ooo  less  than  in  the  previous  year, 
but  ;^63,ooo  more  at  ;£"342,400  was  received  for  interest, 
&c.,  and  ^144,000  more  at  ;^'30o,6oo  was  brought  in. 
On  the  other  hand,  income-tax  was  almost  exactly 
doubled  at  ;^30i,ooo,  but  ;^i20,ooo  less  was  allowed  for 
depreciation,  and  only  ;^2oo,ooo  is  placed  to  general 
purposes  fund,  against  ^800,000  allocated  to  that  fund 


and  general  reserve  a  year  ago.  Consequently,  the 

available  balance  is  only  ;^"i46,ooo  lower  at  ;^"904,250, 
and  the  carry  forward  is  reduced  by  that  amount  to 
;^"i54,2So  after  repeating  the  dividend  of  20  per  cent., 
which  is  equivalent  to  100  per  cent,  on  the  old  capital. 
During  the  year  debentures  for  ;^i 34,000  were  re- 
deemed, reducing  the  amount  outstanding  to 
;^'2, 109,000,  but  sundry  creditors  have  increased  nearly 
two  millions  to  ;^3,493,ooo.  Book  value  of  steamers, 
properties,  &c.,  has  been  reduced  ;^400,oc)o  to 
;^'4, 376,000,  but  general  investments  have  increased 
;^i, 530,000  to  ;£'3, 352,000,  and  sundry  debtors  are 
;£'72o,ooo  higher  at  ;£'3, 620,000,  while  cash  balances  are 
a  little  higher  at  ;^350,ooo.  Therefore,  the  company  has 
done  very  well  indeed,  even  if  the  tide  has  receded 
somewhat  from  last  year's  high-water  mark.  Reference 
is  made  to  the  loss  of  the  Delphic,  which  was  tor- 
pedoed last  August,  but  the  fleet  has  been  increased  by 
the  delivery  of  two  new  steamers  jointly  owned  with  the 
Shaw,  Savill  and  Albion  Co.,  Ltd.  The  total  tonnage  is 
now  400,320,  an  increase  of  6,000  tons,  but  the  tonnage 
building  is  22,000  smaller  at  68,950  tons.  As  the  whole 
of  the  share  capital  belongs  to  the  International  Mer- 
cantile Marine  Co.  of  New  Jersey,  the  control  is  really 
ir:  the  hands  of  the  Morgan  group,  but  we  notice  a  report 
that  the  entire  business  is  to  be  resold  to  British  in- 
terests, and  although  the  price  will  necessarily  be  high 
the  addition  to  shipping  on  the  British  register  will  be 
welcome. 

Splendid  results  were  again  obtained  by  the  Metro- 
politan Carriage,  Wagon  and  Finance  Co.,  Ltd.,  in 
the  year  to  March  31.  Nett  profits  were  practically 
;^20o,ooo  higher  at  ^'590,000,  and  with  a  rather  larger 
amount  brought  in,  the  available  balance  of  ;^75 1,000 
shows  an  increase  of  ;^2o6,ooo.  The  dividend  and 
bonus,  making  15  per  cent,  for  the  year,  is  repeated, 
but  it  h'Us  to  be  paid  on  rather  more  than  double  the 
nominal  capital,  owing  to  the  distribution  of  bonus 
shares  a  year  ago,  and  it  now  absorbs  ;^45o,ooo, 
against  ;^2 13,700.  However,  by  reducing  the  appro- 
priation to  reserve  from  ;^i 50,000  to  j£ioo,ooo,  the 
carry  forward  is  increased  by  ;^20,ooo  to  ;^i8i,350. 
Cash  balances  have  increased  ;^254,ooo  to  ^1,055,000, 
investments  ;^i, 035,000  to  ;^2,o35,ooo,  stocks  nearly 
^400,000  to  ;^'6o2,ooo,  and  debtors  ;^i8o,ooo  to 
_;^554,ooo.  The  directors  have  further  developed  the 
financial  department  of  the  company  by  acquiring  con- 
trolling interests  in  Allied  undertakings,  and  in  order 
to  allow  the  board  to  continue  this  policy  as  oppor- 
tunity occurs  it  is  proposed  to  raise  the  ordinary  share 
capital  from  ;^3,ooo,ooo  to  ;^io,ooo,ooo.  It  has  been 
a  highly  successful  undertaking  for  many  years  past, 
and  it  will  have  a  wide  field  for  its  activities  after  the 
war. 


The  half-yearly  statement  of  the  Bank  of  Taiwan, 
Limited,  to  December  31  shows  wonderful  progress  as 
compared  with  the  correspoodiing  period.     Deposit  and 


TD. 


STANDARD  BANK  OF  SDUTH  AFRICA,  L 

Bankers  to  the  Government  of  the  Union  of  South  Africa  in  Cape  Province;  t'l  the  Imperial  Government  in  South  Africa  and  to  the  Administration 

of  Rhf>desi3, 


Subscribed  Capital 
Paid-up  Capital... 


£6,194,100 
£1,548,525 


Reserve  Fund     ... 
Uncalled  Capital 


£2,000,000 
£4,645,575 


Board      of      Directors. 

\VM.  REIERSON  ARBUTHNOT,  Esq.  I     JAMES  FAIRBAIRN  FINLAY,  Esq.,  C.S.I.  I      Rt.  Hon.  LORD  SYDENHAM,  G.C.S,!., 

SIRDAVIDM.BARBOUR,K.C.S.I.,K.C.M.G.  HORACE  PEEL,  Esq.  G.C.M.G.,  G.C.I. E.,  G.B.E. 

ROBERT  E.  DICKINSON',  Esq.  |      WILLIAM  SMART,  Esq. I      H.  L.  M.  TRITTON,  Esq. 

Head  Offioot   10  CLEMENTS  LANE,  LOMBARD  STREET,  LONDON,  E.O,  4. 

New  York  Agency:— 68,  WALL  STREET,    Over  250  Branches  and  Agencies  in  South  and  East  Africa- 


BANKING  BUSINESS  OF    EVERY  DESCRIPTION  transacted  at 

all  Branches  and  Agencies. 
CURRENT  ACCOUNTS  opened  on  the  usual  terms,  and  DEPOSITS 

RECEIVED  for  fixed  periods  at  rates  which  may  be  ascertained  on 

application. 
SAVINGS  BANK  ACCOUNTS  opened  on  terms,  particulars  of  which 

may  be  obtained  at  Branches. 
BILLS  NEGOTIATED  and  COLLECTED. 

DRAFTS  i5s!ie<l,  IWAIL  and  TELEGRAPHIC  REMITTANCES  made. 
LETTERS  OF  CREDIT  and  COMMERCIAL  CREDITS  established. 


The  officers  of  the  Bank  are  bound  not  to  disclose  the  transactions  of  any  of  its  customers 


TRAVELLER'S  LETTERS  OF  CREDIT  issued  available  in  all  parts 
of  the  world. 

PURCHASE  AND  SALE  of  Stocks  and  Shares  effected. 

DIVIDENDS,  ANNUITIES.  &c.,  received  and  COUPONS  COL- 
LECTED. 

STRONG  ROOMS  provided  for  theisafe  custody  of  Securities  and 
Valuables  of  Customers. 

ASSAY  DEPARTMENT-Gold,  etc.,  and  all  Mineral  Ores  assayed 
and  realised. 

EXECUTOR  AND  TRUSTEE  Business  undertaken. 


FRANCIS  SHIPTON,  London  Manager. 


Soo 


tibe  Jnveetocs'  IReview^ 


Ma\ 


-a. 


1918.. 


current  accounts  have  increased  by  155  millions  to 
270,903,000  yen,  bills  are  up  73  millions  at  149,523,000 
yen,  and  the  note  circulation  has  expanded  8  millions 
to  33,513,000  yen.  On  the  other  hand,  cash  in  hand 
and  at  banikers,  including  bullion  and  foreign  money, 
amouinted  to  40,300,000  yen,  an  increase  of  21  millions, 
and  loans,  advances,  &c.,  are  almost  doubled  at 
400,145,000  yen.  'Jhe  result  of  these  increases  is  that 
the  balance-sheet  now  totals  at  481  millions,  or  very 
nearly  twice  the  figure  of  a  year  ago,  and  it  is  stated 
that  the  turnover  in  foreign  exchange  amounted  to 
707,500,000  yen,  which  also  is  very  nearly  doubled. 
Consequently  it  has  been  decided  to  increase  the  capital 
by  10  millions  to  30  million  yen,  and  sanction  has  been 
obtained  to  riai.se  the  fiduciary  note  issue  to  20  million 
yen.  Gross  profits  amounted  to  25,732,000  yen,  and 
the  nett  is  1,352,000.  an  increase  of  345,000  yen..  After 
again  paying  a  dividend  of  10  per  cent,  per  annum,  and 
placing  300,000  again,st  200,000  yen  to  reserve,  the 
balance  forward  is  120,000  higher  at  393,000  yen.  Of 
course,  conditions  have  been  very  favourable  in  several 
directions,  but  the  bank  is  prudently  strengthening  its 
position  in  case  there  may  be  lean  times  in  store. 


We  have  frequently  emphasised  the  .seriousness  of 
the  outlciok  of  the  East  Rand  Proprietary  Mines,  owing 
to  the  low  grade  of  ore  developed  and  the  increased  co.st 
of  operation  due  to  war  conditions.  The  report  for 
the  March  quarter  foreshadows  the  beginning  of  the 
end.  The  working  profit  was  ;^i7,7i3  below  the  quar- 
terly sum  of  ;^33,ooo  required  to  meet  standing  charges, 
including  debenture  interest,  and  thus  the  hope  pre- 
viously expressed  to  the  effect  that  the  profit  would  be 
sufficient  to  meet  fixed  charges  has  not  been  realised. 
In  view  of  the  consistent  low-grade  ore  exposed  bv  de- 
velopment in  the  lower  levels  of  the  mine,  with  no  indi- 
cation of  improvement,  and  having  regard  to  the  finan- 
cial requirements  involved  in  the  Southern  develop- 
ment scheme  and  to  the  financial  position  of  the  com- 
pany, the  directofis  have  decided  to  abandon  this 
scheme  as  from  the  end  of  this  month.  Meanwhile, 
milling  operations  will  be  continued  as  long  as  is 
reasonably  possible.  The  balance  of  the  mine  develop- 
ment suspense  account  shows  a  credit  of  ;^3io,8i9. 
The  whole  position  will  be  fully  dealt  with  by  the  chair- 
man at  the  annual  meeting  to  be  held  on  the  29th  inst. 

An  important  amalgamation  of  Rand  colliery  pro- 
perties has  been  arranged.  A  new  company,  the 
Tweefontein  United  Collieries,  Ltd.,  was  recently 
formed  in  the  Transvaal  to  acquire  the  coal  assets  of 
the  Rand  Selection  Corporation,  which  includes  an  allot- 
ment in  the  Transvaal  Coal  Owners'  Association.  A 
provisional  agreement  has  now  been  made  for  the  ac- 
quisition by  this  new  company  of  the  assets  of  the 
Tweefontein  Colliery,  Ltd.  The  purchase  price  pay- 
able to  the  Tweefontein  Colliery  is  75,000  cumulative 
preference  and  participating  shares  of  £1  each,  and 
150,000  ordinary  shares  of  the  nevi'  company.  The 
preference  shares  will  be  entitled  to  a  fixed  6  per  cent, 
dividend,  and  a  further  4  per  cent,  after  the  ordinary 
.shares  have  had  6  per  cent.  The  United  Company  will 
also  acquire  from  the  Henderson  Consolidated' Cor- 
poration two  properties,  comprising  10,000  acres,  for 
120,000  ordinary  shares.  Options  to  sub.scribe  at  par 
for  additional  shares  will  be  given  to  shareholders  of 
the  Tweefontein  Colliery  for  six  months  after  the  with- 
drawal of  the  Treasury  embargo  on  capital  issues,  or 
two  years  from  the  date  of  the  approval  of  the  scheme 
by  the  shareholders.  The  Tweefontein  Colliery,  Ltd., 
will  by  this  scheme  become  a  holding  company,  and  its 
assets  will  comprise  hoJdlngs  in  the  United  Company. 
The  object  of  the  scheme  is  to  obtain  more  economical 
results  by  working  on  a  large  scale. 


Some  of  our  Radical  papers,  we  notice,  are  begin- 
ning to  make  a  noise  about  French  claims  in  regard  to 
Alsace-Lorraine.  Not  only,  it  seems,  do  the  French 
statesmen  now  ask  for  the  liberation  of  the  provinces 
torn  away  from  France  in  1871,  but  they  also  demand 
possession  of  sundry  valuable  mineral   regions  which 


were  improvidently  handed  over  to  the  Prussians  by  the 
European  I'owers  in  1814.  This  territory  is  not 
Al.sace,  the  alarmists  hasten  to  tell  us,  and  go  on  to 
demand  that  our  Government  should  not  carry  its  sup- 
port to  France  as  far  as  these  demands  go.  This  is  an 
excess  of  zeal  quite  uncalled  for.  It  is  no  business  of 
ours  even  were  P'rance  to  claim  much  more  than  her 
rulers  are  said  to  do.  There  is  ample  evidence  that 
the  greedy  Prussian  knew  what  he  was  doing  when  he 
tricked  the  European  Powers  of  the  Coalition  against 
.Vapoleon  into  handing  him  over  these  No  Man's  Lands 
in  1814.  In  any  case,  they  were  never  Prussian,  and 
not  in  any  reasonable  sense  German  at  all  before  that 
day.  The  whole  of  the  region  lying  between  the 
Rhine  from,  one  may  say,  Coblenz  to  the  sea,  will  have 
to  be  re-allotted,  not  as  the  Prussians  re-allot,  but  ac- 
cording to  the  aspirations  of  the  people  and  their  in- 
terests, as  this  journal  has  insisted  from  the  first.  It  is 
in  the  interests  of  future  European  peace  that  what  M. 
Pierre  Notomb  calls  the  "  Belgian  barrier"  should  be 
restored  to  the  fullest  extent. 


In  this  connection  the  Ligue  Patriotique  dcs 
Alsaciens-Lorrains  has  opportunely  circulated  a  re- 
print of  an  admirable  article  by  M.  Paul  Albert  Helmcr 
on  "  Alsace-Lorraine  and  the  Principle  of  Nationality," 
which  was  published  first  in  the  Nineteenth  Century — 
And  After  of  February  last.  M.  Helmer  is  a  dis- 
tinguished Alsatian  who  has  long  stood  forward  as  a 
champion  of  the  rights  of  his  people,  and  in  this  essay 
he  gives  a  calm  and  luminous  summary  of  the  facts. 
Alsace-Lorraine,  it  cannot  be  too  often  repeated,  was 
never  German,  although  at  one  time  under  the 
suzerainty  of  the  Hou.se  of  Habsburg  and  within  the  ill- 
defined  lx)rders  of  the  Teutonic  Roman  Empire,  which 
the  Habsburgs  held  as  family  fief ;  but  even  if  in  that 
limited  sense  within  the  range  of  Germanic  influence 
and  subject  to  the  Germano-Roman  domination,  they 
were  never  in  any  sense  Prussian,  and  because  they 
were  torn  away  savagely  from  France  we  are  now- 
fighting  this  war  to  the  death.  People  in  doubt  might 
refresh  their  minds  by  reading  that  essay,  and  mean- 
while they  should  be  careful  to  abstain  from  assumintj 
any  attitude  likely  to  wound  either  Alsatian  or  French 
sentiments  of  patriotism  and  loyalty. 


Our  Foreign    Trade  in  April. 

It  will  be  seen  from  the  accompanying  table  that  imports 
last  month  reached  the  enormous  total  of  nearly  120  millions, 
an  increase  of  42  per  cent,  over  the  corresponding  period  and 
10  millions  more  than  the  previous  highest  record.  But  it  is 
almost  entirely  due  to  the  rise  in  prices,  and,  so  far  as  detail.* 
are  available,  only  two  important  items — hemp  and  wood — show 
increased  quantities.  All  the  others  are  down,  and  Sir  A. 
Stanley  warned  us  last  week  that  the  volume  of  imports  this 
year  would  probably  be  only  about  half-  that  of  1913.  He 
seemed  to  regard  that  as  a  notable  achievement,  and  was  rather 
proud  of  it;  but  the  curtailment  of  quantities  naturally  tends 
to  force  up  prices,  and  we  move  in  a  vicious  circle,  which 
becomes  more  and  more  dangerous,  as  is  shown  by  the  excess 
of  imports  over  exports.  For  the  past  four  months  this  amounts 
to  the  huge  sura  of  257  millions,  against  130  millions  last  year 
and  122  millions  in  1916.  It  is  a  terrible  gap  to  be  bridged, 
and  we  see  no  hope  of  improvement  in  the  near  future.  But 
the  ravages  of  war  are  cumulative  in  their  effect,  and  we  must 
try  to  make  the  best  of  things  until  the  end  comes  nearer  into 
view;  perhaps  it  is  not  so  far  off  as  we  are  sometimes  inclined 
to  fear,  and  for  the  present  we  must  cut  down  everrthing 
except  essential  foodstuffs  and  raw  materials.  Here  is  our 
usual  summary  of  the  figures  : — 


Imports  . . . 
Exports  . . . 
Re-exports. 


April, 
1918. 


119.833.433 

40,071,466 

2,140,847 


Compared 
with  1917. 


£ 
+  35.300.367 
+  4,272,000 
—  6.348,442 


Compared 
with  1916. 


£ 

+  44.117,229 

-I-   3.253.627 
5,952.602 


Four  Months. 


Imports 

Exports 

Re-exports 

Excess  of  imports 


424.912,540 

156,839,197 

11,263,176 


256,810,167 


*•  97.«9o  893 

—  7,219,428 

—  22,218,689 
-H27,3"29,oio 


+  121,015,977 
+  9.330.290 
—  23,001,738 


+  134.687,425 


With  regard  to  imports,  it  must  be  remembered  that  the 
figures  now  include  certain  Government  stores  which  were 
omitted  a  year  ago,  and  it  is  impossible  to  estimate  how  much 
difference  this   makes  in   the  total ;  but  it  may  be  noted   that 


I 


Mav  25,   1918. 


(Lbc  Jiivestous'  IReview* 


501 


jiiiscellaneous  imports  (unclassified)  show  an  increase  of  nearly 
<)  millions,  and  it  is  fair  to  assume  that  the  bulk  of  this  repre- 
sents Government  purchases.  Grain  and  flour  imports  ad- 
vanced 28^  per  cent.,  meat  nearly  100  per  cent.,  and  dutiable 
articles  34  per  cent.,  the  total  increase  in  this  group  being 
j^i6,203,ooo ;  but  no  details  are  given  as  to  quantities.  Raw 
materials  increased  jf6,6o3,ooo,  to  which  wood  contributed 
;/^i, 758,000,  an  increase  of  50  per  cent,  in  quantity  and  of  160 
per  cent,  in  value.  Cotton  advanced  ;^3,329,ooo,  or  45  per  cent., 
but  the  amount  received  was  15  per  cent.  less.  Oil  seeds,  nuts, 
oil,  &c.,  increased  ^^2, 475, 000,  or  nearly  50  per  cent.,  and 
paper-making  materials  advanced  ^371,000,  or  85  per  cent. ;  but 
woo!  fell  both  in  quality  and  value,  and  hides  also  showed  a 
decrease.  There  was  a  reduction  of  ;^i, 628,000  in  miscellaneous 
articles,  chiefly  due  to  smaller  imports  of  rubber.  Among 
-manufactured  articles,  the  only  prominent  increases  (apart  from 
the  miscellaneous  item  already  alluded  to)  are  ;f  1,753,000  in 
metals  other  than  iron  and  steel,  ^935,000  in  chemicals,  <S:c., 
and  ;f335,ooo  in  paper.  The  total  increase  in  this  .section  is 
jf  12,600,000,  or  fully  100  per  cent.,  but  the  basis  of  comparison 
is  not  the  same. 

Except  for  an  increase  of  ^6,315,000,  or  66  per  cent.,  in  cotton 
■e.\ports,  most  of  the  items  show  declines,  but  as  a  rule  they  are 
not  of  great  consequence,  although  they  reduce  the  nett  in- 
<;iease  to  ;,f4,272,ooo.  Foodstuffs  fell  /364,ooo.  and  among 
raw  materials,  while  coal  increased  ;^32o,ooo,  oils,  &c.,  fell  off 
jf556,ooo.  Iron  and  steel  manufactures  dropped  ;^'34o,ooo, 
■woollens  ^875,000,  other  textiles  /■453;00o,  and  apparel  /.375,ooo. 
The  loss  of  our  re-export  or  entrepot  trade  becomes  more  and 
more  serious,  and  the  worst  of  it  is  that  when  a  business  of 
this  kind  is  almost  wiped  out  it  may  never  be  rtecovered,  or 
-only  by  long  and  painstaking  efforts.  But  for  the  time  being  it 
-cannot  be  helped,  and  we  must  hope  for  the  best.  We  shall 
not  go  into  details  with  regard  to  the  aggregate  of  our  trade 
for  the  past  four  months,  but  may  mention  that  imports  of 
foodstuffs  increased  ;f 21, 700, 000,  of  raw  materials  ;^37, 200,000, 
and  of  manufactured  articles  (including  miscellaneous  Govern- 
ment .stores)  ^38, 150, 000.  On  the  other  hand,  exports  of  food- 
stuffs (biscuits,  confectionery,  tinned  fi.sh,  and  the  like)  fell 
nearly  three  millions,  raw  materials  ^1,765,000.  and  manufac- 
tuied  articles  ;^i, 767,000,  in  spite  of  a  gain  of  ,^13,740,000  in 
cotton  fabrics.  Iron  and  steel  manufactures  have  dropped 
/'4, 161, 000,  machinery  ^,^1,914,000,  woollens  ^2,006,000,  other 
textiles  ,^1,660,000,  apparel  ;f  1.360, 000,  and  leather  goods 
jfS67,ooo.  It  is  a  dismal  tale,  but  when  we  consider  that  the 
-(!Xternal  trade  of  the  enemv  has  been  entirely  eliminated,  and 
■that  in  all  human  probability  he  will  not  recover  more  than  a 
fraction  of  it  for  generations  to  come,  we  may  be  of  good  heart 
with  regard  to  the  future. 

Figures   of   imponts   from  and  exports   to  the  principal  coun- 
tries are   included  in  the  past   month's  returns,   and  we   give  a 
■'few  of  the  more  important  items  to  show  the  trend  of  trade  :  — 
Quarter  to  March  31. 


i  'Russia    

f'Sweden 

'Norway 

Denmark   

Netherlands  . . 

Java    

France   

I  "Switzerland  . . 

I 'Spain 

['Italy   

Mapan 

fiU.S.A 

I  Argentina  . . . . 

India 

Australia    

New  Zealand 

Canada 

Egypt 


Imports  from. 


1917. 


082,000 
634,000 
757,000 
747,000 
263,000 
,832,000 
293,000 
,667,000 
,588,000 
,692,000 
157,000 
,685,000 

313.000 

,824,000 
423,000 
653,000 
852,000 
335.000 


1918. 


i 

1,136,000 

5,995,000 

7,194,000 

1,005,000 

4,583,000 

3,677,000 

7,160,000 

4,732.000 

7,154,000 

3,220,000 

5,693,000 

106,526,000 

8,740,000 

25,813,000 

17,745,000 

9,284,000 

23,250,000 

18,172,000 


Exports  to. 


1917. 


1918. 


i 

7,763,000 
879,000 
2,077,000 
1,956,000 
5,738.000 
1.539,000 

26.257,000] 
1,258,0001 
1,612,0001 
6,094,000! 
i,474,oooj 
9,658,000! 
3,350,060; 

14,447,000! 
5.575,000! 
1,987.000: 
4,875,000! 
3,494,000; 


73,000 

421,000 

752,000 

461,000 

3.745,000 

887,000 

30,067,000 

780,000 

982.000 

7,284,000 

1,346,000 

6,525,000 

3,424.000 

r  1, 045, 000 

4,130,000 

1,738,000 

3,350,000 

6,940,000 


1:  is  not  exactly  a  cheerful  record,  but  it  has  its  satisfactory 
features,  and  the  way  Ln  which  Canada  and  other  Colonies 
have  increased  their  exports  and  cut  down  their  imports  is 
encouraging  from  their  own  economic  )X)int  of  view.  Of  course, 
it  is  lamentable  to  see  Russia  leflt  with  a  beggarly  ;f73.ooo,  but 
in  the  circumstances  it  is  difficult  to  see  how  the  situation  can 
be  helped.     Pouring  water  into  a  sieve  is  a  rather  thankless  job. 


By-the-Way  War  Notes. 


Ever  since  we  recorded  the  first  big  credit  arranged  by  Pre- 
-sident  Wilson's  Government  for  the  development  of  the  American 
Air  Service  we  have  indulged  in  dreams.  It  was,  indeed,  not 
difTicult  to  imagine  such  a  growth  of  mastery  in  the  air  on  the 
part  of  the  .\llies  of  the  Entente  as  would,  in  the  end,  render  all 
offensive  on  a  large  scale  by  the  enemy  impossible.  The 
mustering  of  hosts,  consi^sting  of  all  the  males  of  the  nations 
tyrannised  over  by  the  Habsburg  and  IlohenzoUern  families, 
would  then  merelv  end  in  their  destruction  and  all  their  vanity- 
blown  displays  of  force — the  only  god  they  worship — would  be 
brought  to  naught. 

This  dream  has  not  yet  been  realised,  but  is  it  so  very  far  from 
rr-alisation?  What  is  the  meaning  of  the  present  delay  in  the 
<'^ermnn   onslaught?     It   has   been    advertised    enough,    and    de- 


scriptive writers  for  the  Press  have  inured  us  to  the  prospect 
of  another  battle  of  millions.  It  might  break  out  any  day — and 
a  month  has  now  elapsed  since  the  smashing  defeat  administered 
to  the  Prussian  hosts  arouhd  Ypres.  Nothing  has  filled  this 
interval  beyond  continual  raids,  attacks,  growing  sometimes 
into  formidable  battles,  here  and  there  all  along  the  line,  made, 
when  initiated  by  the  foe,  probably  as  attempts  to  find  out  the 
weak  spot  in  the  Allied  lines,  and  almost  invariably  these  attacks 
have  ended  in  his  defeat.  The  Germans  are  being  cowed  and 
demoralised  more  and  more,  yet  the  assault  which  is  to  end  all 
in  a  Prussian  triumph  comes  not. 

No  doubt  time  was  required  to  recover  from  the  effects  of 
the  latest  Vpres  defeat,  just  as  it  was  after  the  equally  smashing 
"  checks"  before  Arras  and  Amiens.  The  weather,  too,  for  part 
of  the  time  has  been  against  the  Germans ;  but,  making  allow- 
ance tor  all  hindrances,  is  it  not  the  fact  that  we  owe  it  to  the 
increasing  efficiency  and  the  skill  and  ever-growing  boldness  ol 
our  Air  Services  that  the  German  ho.its  have  been  paralysed,  and 
remain  paralysed  to  this  hour,  so  far  as  any  repetition  of  the 
March  "drive"  on  the  Somme  is  concerned?  It  is  fascinating 
in  the  extreme  to  watch  day  by  day  how  the  Air  Service  of 
all  the  Allies  is  growing,  and  how  surely  it  has  cbtained  and 
holds  the  mastery  over  the  enemy.  From  the  first  the  French 
have  led  the  way  in  this  new  mode  of  warfare,  and  they  con- 
tinue to  display  an  energy  and  resource  in  it  that  excite  the 
admiration  of  the  world.  But  we  also  have  been  apt  learners, 
and  the  Americans  equally  so.  Consequently,  at  the  present 
time  there  are  on  all  the  Western  front  centres  of  aeroplane  offen- 
sives, whence  French,  American,  and  British  squadrons  pro- 
ceed to  pour  destructive  explosives  on  the  enemy's  massings  of 
troops,  on  his  lines  of  communication,  on  his  provision  and 
ammunition  dumps,  on  his  railways,  and  latterly  on  German 
towns  on  the  Rhine  where  munition  factories  are  !-ituated  or 
where  are  railway  centres.  This  week,  for  example,  Mannheim 
has  been  bombarded  from  the  air  for  the  seventh  time,  Cologne 
for  at  least  the  third  time,  and  Coblenz  for  the  .second  or  third 
time."  Also  Saarbriicken,  Landau,  Metz,  Thionville,  and  other 
pLices  have  been  visited  and  punished  as  centres  of  military 
activities.  So  effective  is  this  continual  hail  of  destruction  from 
the  sky  that  it  is  producing  demoralisation  in  Germany  itself, 
the  effect  of  which  becomes  visible  in  the  lower  efficiency  of  the 
enemy's  resistance,  whether  in  the  air  or  on  the  ground.  Our 
airmen  destroy  the  enemy's  aircraft  with  an  ease  and  a  thorough- 
ness which  is  significant,  and  encourages  the  hope  that  we  are 
beholding  symptoms  of  the  approaching  end  of  his  capacity  to 
offer  effective  resistance,  let  alone  to  win  a  victory.  From  some 
of  our  raids  our  aeroplanes  return  damaged,  and  we  lose  a 
proportion,  but  always  their  losses  are  much  greater  than  ours. 
The  drain  upon  their  steadily  diminishing  producing  capacity 
must  be  approaching   the  unendurable. 

K  notable  testimony  to  the  marvellous  growth  of  the  capacity 
of  our  air  fleets  is  given  in  the  increased  weight-carrying  capa- 
bilities of  our  machines.  They  drop  bombs  by  the  ton  weight 
every  day  they  can  fly,  and  although  we  may  have  no  machines 
of  the  speed  and  carrying  capacity  of  the  latest  German  Gothas, 
that  is  probably  because  our  chiefs  are  wise  enough  to  know 
that  their  small  but  perfect  and  most  efficient  aeroplanes  are  far 
more  useful  and  effective  as  weapons  of  offence  than  the  monsters 
the   German   megalomaniac   lalxDurs  to  produce. 

What  did  his  malignant  raid  last  Sunday  night  on  London 
cost  him?  It  was  the  largest  attack  of  them  all,  and  contained 
some  of  the  newest  and  biggest  Gothas,  reports  say,  and  \ye 
commend  it  to  those  gentle-hearted  lovers  of  Germany  still 
amongst  us,  people  who  cannot  clear  their  minds  of  the  old 
conception  of  the  German  as  a  slobbery  other-worldling,  a 
sentimental  creature  full  of  vagiie  benevolences  in  the  abstract, 
especially  of  affection  for  cats  and  dogs,  all  which  they  have 
mistaken  for  the  true  spirit  of  humanity.  These  still  tell  us 
that  there  are  good  Germans  alive — which  we  do  not  doubt, 
only  they  are  mostly  moral  wilters — and  that  they  are  coming  to 
the  front  in  Germany  itself,  "  ay,  and  even  in  the  Army." 
"  They  are  not  dropping  explosive  shells  upon  us  now  nearly 
so  much  as  they  did  at  first,  many  of  their  shells  don't  now 
explode,"  one  of  these  guileless  beings  opined  to  us  the  other 
day.  Well,  they  killed  44  people,  and  injured  179  in  the  raid 
of  last  Sunday,  so  the  majority  of  the  shells  dropped  by  the 
newest  and  largest  Gothas,  promiscuously  and  totally  regardless 
of  the  mischief  done,  must  have  been  sufficiently  explosive.  We 
have  from  the  first  put  away  all  such  sentimentality  and  trust- 
fulness, and  can  only  give  credit  to  the  Germans  for  an  in- 
genuity in  infamy  and  crime  unexampled  in  the  history  of  the 
v;orld.  And  there  is  but  one  thing  to  be  done— thrash  them  and 
destroy  them  tintil  they  submit  and  make  atonement  for  their 
crimes. 

And  because  this  is  our  plain  duty  we  are  disposed  to  be 
grateful  to  the  Germans  for  some  things.  They  have  taught  us 
a  few  lessons  which  we  probably  could  not  have  succeeded  in 
winning  the  war  without  learning.  They  led  the  way  in  the 
manufacture  of  monster  pieces  of  artillery,  and  perhaps  in  the 
devastating  capacities  of  explosives.  The  Allies  have  overtaken 
them  and  are  beating  them  in  all  that  field,  and  we  thank  the 
brigands  for  putting  us  on  our  mettle.  They  were  the  first  to 
employ  poisonous  gases  with  a  light-hearted  cruelty  which 
shocked  mankind,  but  this  very  brutality  forced  us  to  follow 
their  example.  And  now  it  is  by  no  means  a  wildly  extravagant 
conception  to  ruminate  on  the  day  when  our  airships  will  rain 
liquid  poison  upon  the  enemy's  hordes,  and  destroy  them  in 
masses,  even  as  the  hosts  of  Sennacharib  were  destro5-ed,  in  a 
night.     After  all,  would  not  that  be  a  more  "civilised,"  or  at 


502 


Xtbe  Jnvestote'  IReview. 


-Mav  25,    1918. 


Jtast  a  cleaner,  method  of  putting  the  enemy  out  of  pain  than 
the  clumsy  one  of  tearing  him  to  pieces  or  maiming  him  with 
shot  and  shell?  The  whole  host  would  quietly  slip  into  its  last 
sleep,  and  there  would  be  no  hospitals  required. 

We  know  not  whether  we  are  now  using  liquefied  poison  gas 
upon  the  enemy's  armies  gathering  up  behind  us,  but  it  will 
surely  be  remiss  on  the  part  of  our  leaders  if  they  neglect  to 
do  that  to  the  full  when  opportunity  arises.  For  surely  the 
most  imperative  necessity  lies  upon  the  generals  who  now  com- 
mand our  armies  to  conserve  their  manhood  to  the  uttermost, 
while  yet  using  them  to  repel  the  foe.  And  one  way  to  con- 
serve our  men  is  to  prevent  the  enemy  from  delivering  those 
murderous  onslaughts  upon  a  gigantic  scale  by  which  he  has 
twice  this  year  tried  to  force  his  way  into  the  heart  of  France 
— to  the  coast  at  Dunkirk,  Calais,  and  Boulogne,  or  to  Paris. 
At  all  hazards,  and  by  every  available  means,  we  should  strive, 
and  are  striving,  to  prevent  a  repetition  of  these  onslaughts, 
and,  if  they  cannot  be  finally  stopped,  so  to  deal  with  them 
when  they  are  launched  upon  us  as  to  render  them  futile. 

Probably  we  shall  have  the  great  effort  soon  now  if  it  is  to 
come  at  all,  because  Germany  cannot  afford  again  to  sit  down 
and  dig  in  as  she  did  after  the  defeat  of  the  Marne.  That 
policy  is  going  to  prove  Germany's  ruin,  and  is  the  source  of 
our  never-failing  confidence  in  Germany's  defeat.  It  has 
already  cost  Germany  the  flower  of  her  manhood,  and  before  all 
is  over  will  probably  deprive  her  of  quite  half  her  population. 
Strive  as  the  Prussian  brigand  foragers  may  to  bring  corn 
and  butcher  meat  from  the  overrun  territories  in  Poland  and 
Russia,  enough  cannot  be  procured  to  half  satisfy  the  hunger  of 
the  populations  within  the  two  doomed  empires  between  now 
and  next  September.  Austria  is  famished  now,  and  Germany 
hardly  in  the  least  better  fed.  Therefore,  behind  the  German 
hosts  in  France  and  Belgium,  and  behind  the  Austrians  massed 
amongst  the  mountains  of  northern  Italy,  hunger  stands  prod- 
ding their  leaders  on  as  with  spears  of  steel  white  hot.  On 
they  must  come  or  perish.  l?ut  if  the  Allied  armies  continue 
their  present  policy  of  increasing  harassment  along  the  front, 
and  equally  persistent  destruction  from  the  skies,  it  is  still 
possible  that  the  assaults  may  be  delayed  long  enough  for  hunger 
within  to  bring  down  the  two  loathsome  military  tyrannies  with 
a  crash  to  the  ground.     It  is  a  dream  ;  we  must  not  be  deceived. 

In  any  case,  and  at  the  worst,  Germany  is  now  being  im- 
pelled to  play  her  last  stroke,  for  her  time  is  at  hand.  We 
once  more  repeat  that  her  defeat  in  the  West  and  Austria's 
defeat  by  Italy  will  liberate  Poland  and  Russia,  Bohemia  and 
Bosnia,  Croatia  and  Dalmatia  from  the  grip  of  the  two  tyran- 
nies, restore  Rumania  also  to  freedom  with  enlarged  borders, 
and  accomplish  the  final  expulsion  of  the  Turk  from  Europe. 
These  and  many  things  hang  upon  the  outcome  of  the  Western 
conflict  now  raging  day  and  night,  and  in  all  probability  about 
to  culminate  in  the  final  upheaval  of  the  Tuetonic  hordes  for 
their  destruction.  This  by  no  means  implies  that  we  should 
slacken  our  efforts  on  any  of  the  battle  fronts.  It  rather  warns 
us  to  be  up  and  doing,  to  give  ourselves  no  rest  until  the  duty 
laid  upon  us  has  been  accomplished. 

In  some  respects  the  monthly  exhibit  of  the  British,  Allied 
and  neutral  loss  of  merchant  tonnage  issued  by  the  Admiralty 
is  decidedly  encouraging.  Taking  quarter  by  quarter,  in  the 
June  quarter  ended  June  13,  1917,  2,237,000  tons  were  sunk,  of 
which  1,362,000  tons  were  British.  In  the  September  quarter 
1,494,500  tons  were  sunk,  of  which  953,000  were  British,  and 
in  the  December  quarter  the  total  sinkings  was  1,273,000  tons, 
of  which  783,000  tons  were  British.  These  totals  show  a  pro- 
gressive diminution,  and  the  first  quarter  of  the  present  year 
is  better  still,  for  in  that  time  only, 1,143,000  tons  were  sunk,  of 
which  695,380  tons  were  British.  But  the  April  figure  is  not 
so  pleasant  as  the  January  one,  so  far  as  British  shipping  goes. 
In  January  of  this  year  our  own  losses  were  218,528  tons,  and 
in  April  220,709  tons.  The  total,  however,  for  all  countries  was 
the  best  of  any  monthly  exhibit  shown,  because  only  84,393  tons 
of  Allied  and  neutral  shipping  having  been  lost,  so  that  the 
entire  losses  of  the  month  of  ^April  were  only  305,000  tons,  and 
the  lowest  previous  figure  was  333,000  tons  for  November  last. 
We  are  thus  making  progress  in  a  manner  that  may  be  con- 
sidered satisfactory,  but  the  other  side  of  the  story,  the  making 
good  side,  is  not  quite  so  cheering,  for  our  production  of  ship- 
ping is  insuflicient  to  meet,  or  half  meet,  the  losses.  However, 
we  need  not  dwell  upon  that  at  present,  because  the  workmen 
of  the  country  are  waking  up  to  the  danger,  and  America  is  also 
alive  and  stirring  with  excellent  effect.  Moreover,  there  must 
be  a  much  more  perfect  organisation  devoted  to  the  handling  of 
our  shipping  than  there  was,  because  in  spite  of  the  loss  of 
tonnage  there  is  a  considerable  increase  in  the  capacity  of 
vessels  of  coo  gross  tons  and  over  entering  the  United  Kingdom 
ports  from  oversea.  In  January  this  capacity  aggregated 
6.337.000  tons,  and  was  .slightly  less  in  February,  it  being  a 
shorter  month,  but  in  March  the  total  rose  to  7,296,000  tons, 
and  in  April  it  was  7,040,000  tons.  So  we  are  not  only  over- 
coming the  submarine  piracy  by  fighting  it.  but  learning  to 
use  more  effectively  the  shipping  still  available. 

We  heard  early  in  the  week  from  the  base  behind  our  lines 
that  the  Germans  had  deliberately  bombarded  hospitals  there, 
and  murdered  or  maimed  about  400  of  the  patients  and  their 
attendants.  "  It  was  done  on  purpose,"  we  were  assured,  and 
we  refused  to  believe  it,  held  the  tale  to  be  at  least  much  ex- 
aggerated. This  attitude  illustrates  the  hold  superstition 
still  has  on  the  average  mind,  the  superstition  that  Germans 
are  human  like  the  rest  of  mankind,  and  now  on  this  Friday 
morning  the  horrible  news  is  officially  confirmed,  and  a  German 
aircraft    squadron   leader   explains    that   the   blame   was  ours. 


•  What  can  you  expect,"  says  he,  "  if  you  place  your  hospitals 
on  the  lines  of  railways?"  What,  indeed?  That  callou?! 
mental  attitude  of  impregnable  indifference  towards  every 
humane  consideration  serves  vividly  to  reveal  the  bestial  de- 
gradation into  which  the  Germans  have  sunk.  Their  in- 
humanity is  reared  on  a  foundation  of  abject  servility,  for  the 
population  of  Germany  is  es.sentially  a  slave  population,  and 
out  of  an  abject  worship  of  privilege  and  power  has  been  evolved 
an  inhuman  monster,  devoid  of  all  power  of  distinguishing  be- 
tween truth  and  falsehood,  cruelty  and  brotherliness,  and  so 
.suffused  with  the  conceit  of  their  own  perfectness  as  to 
imagine  that  the  more  cruel  they  are  the  more  will  outside 
mankind  admire   and   obey  tbem. 


Argentine  Ladolr  and  Wealth. — Our  newspapers  still  de- 
scribe the  railway  situation  in  Argentina  as  "chaotic,"  and 
the  Government  appears  to  have  assumed  an  attitude  of  in- 
creased hostility  towards  the  foreign  companies  which  have 
provided  it  with  railways.  If  persisted  in,  that  attitude  must 
interfere  with  the  country's  progress  by  drying  up  the  .supply 
of  new  capital.  The  Government,  it  seems,  has  insisted  that 
all  strikers  shall  be  taken  bacJt,  and  all  those  who  were  Uken 
on  in  their  place  dismissed.  That  is  an  extremely  high-handed 
proceeding,  and  ought  not  to  have  been  adopted  •'vithout  con- 
sultation with  the  directors  of  the  companies.  At  the  same 
tipie,  we  must  not  make  too  much  of  this  action,  nor  forget  lh;it 
the  railway  companies  have  not  been  uniformly  inspired  by 
the  desire  to  further  the  interests  of  the  community.  There  are 
faults  on  the  side  of  the  railways,  not  usually  alluded  to  in 
Europe,  and  provided  the  Government  stops  short  of  confisca- 
tion, and  merely  insists  upon  fair  play,  shareholders  here 
might  be  disposed  to  acquiesce,  grumbling,  in  official  inter, 
ference,  especially  as  the  country  appears  to  be  en  the  eve  of 
a  fresh  outburst  of  speculation.  It  only  requires  the  sea  to  be 
open  and  enough  shipping  available  to  carry  its  products  away 
to  be  eager  and  ready  to  enter  upon  a  fresh  period  of  excessive 
and,  it  may  be,  dangerous  prosperity.  The  latest  circular  of 
the  British  Bank  of  South  America  tells  us  that  during  March- 
there  was  a  rapid  increa^  in  the  note  circulation,  stayed  for 
the  moment,  however,  by  the  limit  fixed  for  deposits  at  the 
Argentine  Legation  in  Washington.  Only  the  labour  troubles 
damp  the  sanguine  spirit  which  appears  to  have  been  laying 
hold  of  the  people.  The  banks  are  gorged  with  money  which 
cormmerce  is  unable  to  absorb,  and  it  is  suggested  that  present 
conditions  would  be  favourable  for  the  issue  of  an  internal  loan 
to  consolidate  the  national  fJiort-dated  floating  debt,  or  to 
collect  spare  capital  to  be  devoted  to  the  expansion  of  national 
industries.  Argentina,  in  other  words,  is  fundamentally 
prosperous  at  present,  but  the  labour  ferment  on  the  railway4 
continues,  and  the  Government  ought  to  join  hands  with  em- 
ployers to  try  and  evolve  some  means  of  satisfying  labour's 
fair  requirements  without  confiscating  property,  instead  of 
plunging  in  haphazard  to  scatter  its  orders  about  regardless  of 
consequences. 

Brazilian  Deveiopments.— The  latest  circular  from  the 
British  Bank  of  South  America,  Ltd.,  has  several  interestini 
items  of  news  from  Brazil,  not  the  least  among  which  is  some 
description  of  the  efforts  being  made  to  develop  new  industries 
or  sources  of  wealth  inside  the  Republic.  An  attempt,  for  in- 
stance, has  been  made  to  find  a  substitute  for  jute,  but  .that 
failed,  and  on  its  failure  the  authorities  proceeded  to  experi- 
ment in  the  cultivation  of  jute  itself.  Jute  and  hemp  to  the 
value  of  nearly  ;^i, 000,000  sterling  were  imported  last  year  to 
the  port  of  Santos  alone,  so  there  is  temptation  to  produce  the 
fibres  at  home.  Experim^ints  are  also  being  made  in  the 
direction  of  a  substitution  of  pataua  oil  for  olive.  The  pataua 
plant  grows  in  the  Amazon  district,  and  its  oil  is  said  to  be 
an  excellent  substitute.  Arr.nngements  are  also  being  made 
to  produce  cau.stic  soda  in  Brazil,  and  the  Government  has 
recently  decreed  that  money  shall  be  provided  to  enable  the 
first  three  projected  factories  to  be  built  and  started.  The 
money  is  to  be  advanced  at  5  per  cent,  up  to  an  extent  of  75 
per  cent,  of  the  estimated  outlay,  but  the  loans  have  to  be 
liquidated  within  a  maximum  period  of  ten  years  by  annual 
reductions.  Great  Britain  and  Germany  in  pre-war  days  sup- 
plied most  of  the  caustic  soda,  and  since  then  the  United 
States,  but  Brazil  means  to  try  and  produce  it  for  itself.  Coat 
has,  it  is  reported,  been  found  neir  Campinas,  in  the  State  of 
Sao  Paulo.  The  vein  is  near  the  surface,  and  the  coal  is 
declared  to  be  satisfactory.  Should  it  prove  to  be  a  real  de- 
posit, the  Paulista  Railway  Co.  will  possibly  run  a  branch  line 
to  the  mine.  These  changes  are  all  in  embryo  or  in  the  trial 
stage,  but  they  show  how  thoroughly  the  war  is  stirring  countries 
up  to  fall  back  on  and  make  the  most  of  their  own  resources.  In 
the  matter  of  paper-making,  even,  Brazil  means  to  provide  for 
its  own  wants,  and  a  Norwegian  company  has  recently  received 
permission  to  make  paper  in  Brazil,  chiefly  for  newspapers,  of 
which  it  is  hoped  that  the  total  requirements  may  be  provided 
for  by  the  projected  Pemambuco  Paper  Mills,  Ltd. 

The  Standard  Bank  of  South  Africa,  Ltd.,  announce  that 
they  have  extended  their  premises  to  27,  Nicholas  Lane,  Lom- 
bard Street,  E.C.  4,  where  the  business  of  their  stock,  share, 
and  coupon  departments  is  now  being  conducted. 

Sir  Charles  Mandelberg  has  sent  us  a  pamphlet  containing 
the  names  of  about  250  firms  representing  various  industries 
in  all  parts  of  the  United  Kingdom  who  have  agreed  to  be 
as.sociated  with  his  proposals  for  increasing  the  British  export 
trade.  It  is  an  interesting  list,  and  we  hope  the  scheme  wilT 
evolve  the  good  expected  from   it. 


Mav 


-3) 


1918. 


XLbc  Jnveetote'  IReview. 


503 


Insurance    News. 

lu  common  with  several  other  first-class  offices,  the  experience 
of  the  Alliance  Assurance  Co.  in  1917  was  unfavourable,  so 
far  as  the  fire  business  was  concerned,  for  whereas  the  increase 
in  the  fire  premium  income  was  ^146,946,  at  ^^i, 516, 105,  the  in- 
crease in  claims  was  ;i  157,388,  at  ;i64o,735,  the  loss  ratio  being 
4i;i  per  cent.,  as  compared  with  35^  per  cent,  in  1916.  Expenses 
were  ;£^32,836  heavier  at  ;,f552,3oo,  but  the  ratio  was  lower, 
namely,  ^^36  8s.  7d.  per  cent.,  against  £3y  18s.  lod.  per  cent. 
The  result  was  that  the  surplus  was  ;{.'43,278  less  at  2^323)07o. 
The  fire  fund  has  been  increased  by  ;{.'58,779  to  ;^2, 185,797.  In 
the  life  department,  1,193  policies  were  issued  for  iigo5,iO., 
gross,  a  reduction  of  ;^'i2S,305,  the  nett  amount  retained  being 
,2^819,910,  a  decrease  of  .£105,855.  At  ;f  1,104,989,  the  nett  total 
premium  inccxme  was  ;£26,247  lower,  and  at  the  close  of  the 
year  the  total  funds  were  2^171946,532,  or  .1^353,151  less  than  a 
year  ago.  A  surplus  of  only  ;(^'52,6i9  was  disclosed  in  the  valua- 
tion of  the  Provident  Life  Fund  for  the  five  years  to  Dccpti]- 
ber  31  last.  This  poor  result  was  due  entirely  to  the  deprecia- 
tion, which  exceeded  ;,i'528,ooo,  in  the  value  of  investments. 
The  directors  carry  forward  the  whole  of  the  surplus,  but  they 
propose  to  modify  the  method  of  allottinji  interim  bonuses,  so 
as  to  take  account  of  the  premiums  paid  during  the  five  years. 

Heavy  losses  were  sustained  by  the  Sun  Insurance  Office  in 
the  conflagration  at  Salonica,  the  claims  in  this  connection,  in- 
■  eluding  adjustment  expenses  and  exchange,  absorbing  ;£29o,ooo, 
so  that  for  1917  the  total  fire  losses  came  to  ;£i,i25,974,  or 
;£'386,o9o  more  than  in  1916,  the  loss  ratio  being  at  the  rate  of 
66.38  per  cent,  on  the  premiums  received,  which  at  ^1,696,246 
were  ;£i63,897  larger  than  in  the  previous  year  There  was  a 
loss  on  the  fire  account  of  _£'6t,992,  as  contrasted  with  a  profit 
"f  ;£253,526  in  1916,  and,  after  paying  the  usual  dividend,  the 
unappropriated  balance  was  reduced  by  ;£24i,56o  to  ;£i85,4i5. 

The  fire  experience  of  the  Commercial  Union  Assurance  Co. 
in  1917  was  quite  satisfactory,  as  nett  fire  premiums  were 
^520,024  higher  at  ^4,545,966.  whereas  claims  were  only 
;^ii7!-74  "lore  at  ^2,198,745,  the  loss  ratio  working  ont  at  48.36 
per  cent.,  as  compared  with  51.7  per  cent,  in  1916.  After  trans- 
ferring ^300,000,  or  ;£ioo,ooo  more,  to  profit  and  los.s,  the  fire 
fund  was  increased  by  ;if48o,789  to  ^4, 71 1,852,  while  the  marine 
premium  income  was  less  by  £s3<777  ^t  .^892, 771  nett,  claims 
were  £27,388  higher  at  £'595,590,  and,  after  transferring 
;£2oo,ooo,  against  ^'50,000,  to  profit  and  loss,  the  marine  fund 
was  left  practically  unchanged  at  £'1,391,277.  Nett  accident 
premiums  at  .£3,886,693  showed  an  expansion  of  ^£699, 360, 
against  which  there  was  an  increase  of  ;£388,965  to  £1,998,478 
in  the  claims  paid  and  outstanding.  In  all,  £800,000  was  carried 
to  profit  and  loss  account  from  the  fire,  marine,  and  accident 
accounts.  The  new  life  business  consisted  of  2,720  policies  for 
/i,66i,822,  as  compared  with  2,684  policies  for  £1,955,327. 
Claims  by  death  were  heavier,  namely,  /'41 5,582,  against 
;£3o8,528.     A  total  surplus  (including  interim  bonuses  of  £34,635 


already  paid)  of  ^252,211  was  disclosed  in  the  valuation  ftLr 
the  five  years.  This  sum  was  arrived  at  after  writing  off 
^419,594  for  depreciation,  while  the  war  claims  paid  csune  to 
^268,173.  \o  general  distribution  of  profits  is  to  be  made, 
the  balance  carried  forward  being  .£217,576.  Provision  has 
been  made  for  the  payment  of  interim  bonuses  on  policies  which 
become  claims  before  the  next  valuation. 

Only  233  policies  were  issued  by  the  old  Equitable  last  year, 
assuring  a  nett  amount  of  j£22o,624,  this  total  being  ;£io9,o74 
less  than  in  1916.  Claims  by  death  were  ;£7i,si9  less  at 
;£3oOj739-  After  writing  off  ^'52,500  for  depreciation,  the  funds 
at  the  close  of  the  year  stood  at  ;£4,853,6i2 — a.  decrease  of 
;£i2,342.  The  gross  rate  of  interest  earned  on  the  funds  was 
3s.  higher  at  ^'4  19s.  6d.  per  cent. 

In  all  departments  the  Royal  Insurance  Co.  last  year  did 
remarkably  well,  and  the  dividend  for  (he  year  was  raised  from 
283.  per  share  to  30s.,  while  the  total  funds  were  increased  by 
^876,074  to  jf22,28i,7i8.  Nett  fire  premiums  were  ;£446,84i 
higher  at  ^4,882,476,  and  as  claims  were  only  ;£i94,oo7  more  at 
£2,470,338,  the  resulting  surplus  was  ;£i5o,4i4  higher  at 
^717,362.  In  the  nxarine  section  an  increase  of  .£389,372  to 
;^'2, 154,057  in  the  nett  premiums  was  accompanied  by  a  reduc- 
tion of  £153,188  at  ;£483,575  in  the  claims.  The  total  nett  pre- 
miums in  the  life  department  came  to  ;£i4,o6o  more  at  ;£872,469, 
and  the  life  funds  were  raised  by  ;£3i8,6o2  to  ;£ii, 175,481.  A 
year  ago  ;£50o,ooo  was  written  off  investments,  whereas  this 
year  no  such  provision  is  necessary,  but  ^£550,000,  against 
^£300,000,  is  placed  to  general  contingencies  fund,  and  ;£577,994 
is  carried  forward,  against  ;£77i,877  a  year  ago. 

Improved  results  are  disclosed  in  the  report  of  the  Norwich 
I'nion  Fire  Insurance  Society,  the  1917  accounts  showing  an 
increase  of  ^£72,466  in  the  nett  fire  premium  to  ;£i,365,244. 
Nett  claims  at  /67i,84i  represent  49.21  per  cent,  of  the  pre- 
miums, as  against  a  loss  ratio  of  49.78  per  cent,  in  1916,  and 
after  adding  ^£28,986  to  the  premium  reserve,  the  fire  fund  at 
the  end  of  the  year  was  £'1,546,097.  In  the  accident  account 
the  premiums  increased  by  ^47,508  to  .£537,343,  while  claims 
amounted  to  ^214,203,  against  ^£200,967,  the  surplus  being 
£■87,374,  against  /^io6,i3i.  Marine  premiums,  including  the 
balance  brought  forward,  amounted  to  ;£562,796,  as  compared 
with  £'434,952,  -B^rile  claims  and  expenses  were  ;£25i,3i6, 
against  ^194, 978.  The  underwriting  account  for  1916  has  bieen 
closed  and  the  ascertained  profit  of  ^22,851  (against  ;£37,989 
for  the  previous  year)  is  added  to  the  additional  reserve.  A 
final  dividend  of  273.  a  share,  less  tax,  is  now  recommended, 
making  the  total  distribution  for  191 7  42s.  a  share,  an  increase 
of  5s.  per  share  as  compared  with  1916.  After  providing  the 
usual  reserves,  the  total  underwriting  profit  with  interest  was 
^£434,481,  being  the  largest  amount  credited  to  profit  and  loss 
in  any  one  year.  Depreciation  of  investments  for  the  year 
written  off  amounted  to  ^£52,910,  and  ^272,118,  or  more  than 
double  the  amount  brought  in,  is  carried  forward. 


VILLAGE     DEEP,    LIM 

(Incorporated  in  the  Transvaal.) 

ITE 

£1  each 

AZ. 

St  Decei 

2       8 
2       8 

18     10 

D. 

nber,  1917. 

Per  ton  milled 

£1        8    10 

12       9 

Issued  Capital  £1,060.671   In  1,060,671  Shapes  of 

DIRECTORATE. 

H.  C.  BOYD  (Chairman). 
Major  R.  W.  FFENNELL.                      A.  F.  MULLINS. 
RICHARD  R.  HOLLINS.                         C.  MARX. 
E.  A.  WALLERS,  C.B.E.                        F.  G.  C.  E.  ROBELL 
Sir  A.  BAILEY,  K.C.M.G.,  M.L.A.       S.  M.  NELSON. 

Extracted  from  the  Annual  Report  for  the  year  ended  31 

Tonnage  milled— 61 2,800. 

Ota]  Working  Revenue           £814,017 

Total  Working  Costs 696,871 

Working  Profit £217,045 

£0 

7 

1 

£225,773 
124,068 
16 

6,738 
8.618 

17 
12 
12 

3 
11 

3 
11 

3 

8 
0 

Balance  unappropriated  at  31st  December,  1916 

Profits  previously  appropriated,   being  net  credit   on  Equipment  for  the  year   £11,049    3 

9,  less 

Amount  received  ujider  Bewaarplaals  Moneys  Application  Act,  1917       

This  amount  has  been  dealt  with  as  follows  :— 

Annuity  in  lespect  of  Undermining  Rights  leased  from  Government..        ..        10,093 
Government  Taxes 23,704 

Dividends  declared  during  the  year — No.  18  of  7A  per  cent,  and  No.  19  of  8f  per  cent. 
Leaving  a  Balance  unappropriated  of . .        . ,        , ,        . ,        . ,        .                    , .        , , 

0       0 
4       8 

£366,217 
33,797 

17 

4 

1 
8 

£332,420 
172,359 

£160,081 

12 
0 

11 

B 
9 

8 

The  Ore  Reserve  as  at  31st  December,  1917,  is  estimated  as  follows  :— 

Value. 
Tons.                                Dwts. 

Main  Reef  Leader 1,837,800        •■        ••        8*6 

South  Reef        36,200        ■■        ■■       8<0 

Stop 
don  Secreta 

ing  Width, 
nches. 

83 

55 

ries,  A.  MOIR  and  Co., 

Total 1,874,000                             68 

The  full  Report  and  Accounts  (with  Plan  of  Workings)  may  be  obtained  from  the  Lon 
No.  I,  London  Wall  Buildings,  London,  E.C.  3. 

m 

504 


Zbc  investors'  IReview. 


Mav  25,   1918. 


ASSURANCE  CO..  LTD. 


NATIONAL  BENEFIT 

ASSETS    EXCEED        -  £1,000,000. 

Attractive  LIFE,    FIRE.  ACCIDENT  &  MARINE  Polioies. 

HEAD    OFFICES : 

NATIONAL    HOUSE.    Newgate    Street.   LONDON.    E.C.  1. 

Managing  Director:  J.  Francis,  J.P.,  F.S.S. 


Ubc  Snv?e8tors'  lRev>iew. 

Money    and   Credit   Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5 J  per  cent,  on 
Thursday,  April  5,  19x7.) 


Norfolk  Heuse,  Friday  Evening. 

There  are  no  incidents  in  the  Money  market  this  week  to 
dwell  upon.  Some  Italian  bills  were  sold  in  the  end  of  last 
week  at  jfi  per  cent.,  and  arrangements  were  made  in  the 
middle  of  this  week  for  placing  a  few  more  at  the  same 
rate.  It  is  also  announced  that  ;^i,ooo,ooo  of  yearling  Liver- 
pool bills  will  be  put  up  for  tender  next  Tuesday.  The  buyers 
will  pay  for  them  on  June  5.  Throughout  the  week  loans 
have  been  easy  and  abundant,  with  rates  the  same  as  before, 
except  for  call  money,  which  was  sometimes  abundant  enough 
at  24  per  cent.,  and  never  more  than  3  per  cent.  Balances 
became  more  usable  towards  the  end  of  the  week,  but  without 
bringing   any  change  in   rates. 

The  Hank  return  shows  that  public  deposits  were  depleted 
;^3,o23,ooo,  and  other  deposits  ;f6,22o,ooo,  by  the  repayment 
of  ;f 1, 736, 000  of  loans  on  Government  securities  and  of 
;f8,2i8,ooo  on  other  securities  credits.  The  reserve  has  in- 
creased ^^655,000  to  ;^30,837,ooo,  thanks  entirely  to  an  influx 
of  bullion  to  the  amount  of  ^925,000.  The  note  circulation 
expanded  ^^270, 000.  Owing  principally  to  the  reduction  in 
liabilities,  the  proportion  of  reserve  has  risen  by  i^  to  1854 
per  cent. 

A  conference  was  held  at  the  Treasury  on  Wednesday  be- 
tween the  leading  bankers  and  the  Chancellor  of  the  Exchequer 
to  discuss  the  question  of  what  steps  might  be  taken  by  the 
hanks  to  encourage  the  sale  of  National  War  Bonds.  There  is 
not  much  support  for  the  suggestion,  frequently  canvassed  of 
late,  of  making  a  further  reduction  in  rates  on  deposits,  in  order 
to  stimulate  their  withdrawal  and  investment  in  Government 
securities.  It  is  fglt  that  the  margin  of  23i  per  cent,  at  pre- 
sent existing  in  favour  of  War  Bonds  over  the  rate  allowed 
on  deposits  is  sufficiently  wide  as  to  make  it  clear  that  a 
further  widening  of  the  margin  would  not  induce  those  who 
prefer  to  keep  large  balances  on  deposit  to  change  their  policy. 
To  these  people  it  is  obvious  that  some  consideration  other 
than  that  of  the  rate  of  interest  influences  them  in  keeping 
money  on  deposit  at  a  substantial  loss  of  interest.  But  a  con- 
siderable amount  of  bank  deposits  are  for  fixed  periods,  and 
carry  interest  at  from  4  to  5  per  cent.,  and  even  more.  These 
long  deposits  stand  on  a  different  footing,  and  the  question 
of  rendering  these  simis  available  for  investment  in  Govern- 
ment securities  has  been  discussed  in  banking  circles.  If  an 
agreement  could  be  come  to  among  the  banks  to  discontinue 
the  practice  of  allowing  rates  of  interest  higher  than  that 
published,  at  present  3  per  cent.,  there  is  no  doubt  that  a  con- 
siderable proportion  of  those  funds  would  seek  reinvestment  in 
War  Bonds  or  Treasury  bills,  especially  if  the  banks  would 
undertake  to  provide  funds  on  special  terms  to  the  depositors  to 
meet  contingencies,  for  it  is  often  to  be  prepared  for  these  that 
firms  and  companies  keep  their  money  on  deposit. 

In  several  quarters  in  the  City,  however,  it  is  felt  that  one 
reason  for  the  falling  off  in  War  Bonds  sales  is  that  they  have 
been  on  tap  long  enough,  and  have  grown  stale.  A  new  form 
of  War  Bond  is  desired  by  those  who  have  bought  as  many  of 
the  existing  bonds  as  they  care  to  have.  Many  people  are 
advocating  the  issue  of  a  low  interest-bearing  fixed-term  bond 
on  a  5J  per  cent,  basis.  With  the  present  high  rate  of  tax,  the 
capital  appreciation  on  redemption  would  be  a  strong  attrac- 
tion. 

Australia  is  about  to  raise  another  War  Loan.  Already,  Mr. 
Watt,  the  ContmonweaUh  Treasurer,  informed  the  House  of 
Representatives,  /i68,ooo,ooo  has  been  authorised,  of  which 
.1^149,000,000  has  been  .subscribed,  and  power  is  now  asked 
for  to  raise  another  ^^80,000,000  fti  t,  per  cent,  bonds,  subject 
to  taxation.  This  is  indeed  proof  of  the  Commonwealth's 
solidarity  with  the  Imperial  Crovernment  in  the  war.  For 
the  current  year  the  estimated  expenditure  is  ^84,000,000,  and 
next  year's  outlay,  i.e.,  the  year  July  i,  iqi8.  to  June  30,  1919, 
is  put  at  a  like  figure.  So  the  nece.ssarv  borrowing  is  pru- 
dently arranged  for  now.  Hitherto,  added  the  Treasurer,  onlr 
about  10  per  cent,  of  Australia's  wealth  has  been  absorbed  in 
the   loans. 

Quebec  City  has  taken  a  new  step  in  the  art  of  borrowing, 
and  we  think  it  might  be  worth  our  own  Crovernment's  while  to 
inquire  how  it  was  done.  In.ste.^d  of  going  to  the  Money  market 
to  raise  a  loan  the  city  authorities  simply  asked  the  citizens  to 


raise  $479,000,  or  ;f  96,000,  for  civic  purposes,  and  the  response 
was  in  a  few  days  $408,000,  or  /^82,<:>oo.  The  success  of  the 
loan,  it  is  added,  was  chiefly  due  to  working  men  and  women. 
How  were  these  people  induced  to  subscribe?  We  should  like 
to  perform  a  similar  feat  here,  but  the  Government  evidently  does 
not  know  how. 

The  Vossische  Zeilung  states  that  the  eighth  Austrian  War 
Loan  is  to  be  i-ssued  forthwith  at  93,  bearing  5J  per  cent, 
interest.  How  much  is  asked  for?  The  newspaper  does  not 
say,  and  perhaps  the  Government  itself  docs  not  know.  And 
who  is  to  subscribe?  The  poor,  oppressed  Jew  bankers  who 
manipulate  the  peoples  kept  in  bondage  by  the  Habsburg 
tyranny,  or  who? 

A  syndicate  of  German  banks,  headed  by  the  Berliner  Handels- 
gesellschaft  and  Messrs.  Mendelssohn  and  Co.,  have  contracted 
to  negotiate  a  loan  of  ;f  1,000,000  for  the  City  of  Frankfort,  with 
interest  at  5  per  rent.,  and  Hamburg  has  decided  to  imitate  to 
a  like  amount.  The  bonds,  ^'2,000,000  in  all,  are  to  be  offered 
in  neutral  countries,  and  no  doubt  the  effort  to  sell  them  will 
enable  the  Israelitish  and  other  banks  within  the  Prussian 
dominions  to  form  some  conception  of  how  the  world  looks  upon 
German    finance  to-day. 

In  a  recent  issue  of  the  New  York  Evening  Post  a  Zurich 
correspondent  of  that  paper  gives  some  account  of  the  state 
of  Austrian  currency  which  may  be  useful  as  a  sort  of  index 
to  the  degradation  of  the  Habsburg  Empire,  and  all  that  relates 
to  its  power  to  keep  on  its  legs.  At  the  end  of  1913  the  note 
circulation  was  about  ^100,000,000.  A  year  later  it  was  more 
than  twice  that  figure,  or  ;^ 208 ,000,000.  By  the  end  of  last 
year  this  mass  of  paper  had  been  heaped  up  to  ;^ 728,000,000,  or 
18,440,000,000  kronen.  What  it  may  be  now,  who  shall  say? 
But  we  doubt  if  the  entire  visible  balance  of  hard  cash  within 
the  two  greater  States  composing  the  empire  could  muster  i  per 
cent,  cover  for  this  mountain  of  paper.  And  there  is  no  means 
whatever  by  which  this  insolvency  can  be  mitigated  except  by 
bankruptcy  or  the  destruction  of  the  paper  money  wholesale. 
The  exchange  value  of  the  krone,  to  be  sure,  may  fall  to  a 
penny,  and  so  wipe  out  most  of  the  debt  to  the  ruin  of  the 
State.  Therefore  the  misery  which  Habsburg  ambitions  and 
subservience  of  the  Austrian  to  the  designs  of  the  Prussian 
criminal  lunatic  is  bringing  upon  the  populations  of  the  Austro- 
Hungarian  Empire  is  something  greater  than  the  human  mind 
can  conceive.  Were  the  Habsburgs  to  assert  their  independence 
of  Berlin  and  to  throw  down  their  arms  to-morrow,  retreat  into 
their  own  territories,  and  surrender  all  that  the  Jugo-Slavs, 
Italians,  Bohemians,  and  other  oppressed  nationalities  within 
their  dominions  demand,  they  could  not  avert  the  fate  that  is 
overhanging  them.  Austro-Hungary  is  a  composite  State  not 
only  bankrupt  beyond  hope,  but  famishing  as  well,  and  such 
a  famine  it  is  going  to  be  as  the  world  will  be  fascinated  with 
horror  to  look  upon.  Already  cannibalism  is  said  to  have  made 
its  appearance,  but  we  need  not  believe  that  story  yet.  The 
victim  populations  will  perish  soon  enough  without  that. 

A  prominent  feature  of  the  foreign  exchange  market  this 
week  has  been  a  sharp  recovery  of  27^0.  to  9.75fi.  in  the  Dutch 
rate.  The  Swiss  exchange  has  also  moved  i2§c.  in  our  favour 
to  i9.37if.,  in  connection  with  the  arrangement  of  the  British 
credit.  An  official  Treasury  minute  dealing  with  the  terms 
states  that  Barclay's,  Lloyds,  London  City  and  Midland,  and 
the  London  County,  Westminster  and  Parr's  will  provide  for 
the  drawing  and  acceptance  of  three  months'  bills  up  to  io<5 
million  Swiss  francs,  renewable  up  to  a  total  period  of  three 
years.  The  Italian  lira  has  depreciated  further,  the  pound 
sterling  purchasing  43.20  lire,  as  against  43.05  lire  last  week. 
Stockholm  has  fallen  to  13.87^  kr.,  but  other  Scandinavian 
rates  have  moved  slightly  in  our  favour.  Montreal  has  fallen 
to  I4.81J4,  following  the  export  of  gold  to  the  United  States. 
Valparaiso  has  relapsed  to  i6Ud.,  Buenos  Aires  id.  to  5iid.. 
and  Montevideo  Jd.  to  64jd.  The  Uruguayan  credit  to  Great 
Britain  provides  that,  in  addition  to  the  loan  of  15,000,000  gold 
pesos  at  5  per  cent,  interest,  the  Banco  de  la  Republica  shall 
be  authorised  under  the  Act  granting  the  credit  to  make  fur- 
ther loans  to  private  persons  or  corporations  up  to  8,000,000 
pesos.  Spanish  exchange  has  declined  to  16.89J  pesetas  to  the 
pound.  The  Finance  Minister  has  just  introduced  proposals 
for  replacing  the  silver  currency  as  far  as  possible  with  gold 
currency.  The  minting  of  gold  is  to  be_.  resumed  as  from  July, 
1919,  on  an  extensive  scale,  and  the  25  pesetas  notes  are  to 
be  withdrawn  from  circulation.  Superfluous  silver  coins  will 
be  demonetised  and  sold  abroad,  partly  for  the  purpose  of  re 
deeming  debt  held  abroad.  It  seems  a  rather  curious  use  to 
make  of  Spain's  plethora  of  gold.  It  would  be  more  profitable 
to  make  use  of  the  gold  as  a  basis  of  makinfj  loans  abroad 
at  a  high  rate  of  interest  than  to  indulge  in  the  luxury  of  a 
gold  coinage  when  it  is  so  much  more  economical  to  use  notes 
and  token  coins  for  home  exchanges,  and  just  as  effective 
Still,  the  Spanish  bankers,  who  are  unused  to  making  foreign 
credits,  will  learn  the  business  in  time,  and  make  considerable 
profits  from  it. 

The  Palatine  Bank,  a  small  Lancashire  bank,  whose  office 
is  in  Manchester,  has  intimated  that  a  call  of  los.  per  share 
will  be  made  on  its  capital.  This  call  amounts  to  ;^i2.50o,  and 
brings  up  the  capital  account  to  /■  125.000  paid,  or  ;^5  a  share 
with  ^15  per  share  of  further  liabilitv,  ;f  10  of  which  can  only 
hi  demanded  in  the  event  of  liquidation. 

Silver. 

Silver  remains  unchanged  at  48%d.  per  oz.,  but  the  Ciovern. 

ment   has   issued    a   notice   extending  to  the  I'nited    Kingdom 

the  prohibition  of  hoarding  of  silver,  which  had  already  been 

proclaimed   in  Ireland.   There  it  seems  that  the  hoarding  had 


May  25,   1918. 


Ube  Jnvestots'  IRevtew. 


505 


become  conspicuous,  absorbing  an  excessive  portion  of  the 
metallic  currency.  Here  we  do  not  know  that  there  has  been 
any  particular  disposition  to  hoard,  but  all  the  same,  the  pro- 
hibition will  do  no  harm.  There  is  nothing  new  about  the 
situation  of  silver  in  the  East,  but  the  stock  in  Shanghai  has 
gone  down  550,000  ozs.  to  32,150,000  ozs.  in  sycee,  and  also 
$400,000  to  $15,800,000.  News  comes  through  the  Toronto  cor- 
respondent of  the  Times  that  a  group  of  financial  houses  in 
that  city  and  Montreal  have  arranged  to  lend  the  Government 
of  Ontario  ;^6oo,ooo  ($3,000,000).  The  new  loan  is  redeem- 
able in  10  years,  and  will  bear  6  per  cent,  interest.  It  was 
tendered  for  at  gg.40  per  cent.,  and  the  money  is  to  be  used 
chiefly  on  constructing  new  hydro  electric  plant  at  Chippawa. 


BANK    OF    ENGLAND 

AN  ACCOUNT  pursuant  to  the  Aci  7  and  8  Vict.,  cap.  32,  for  the 


Motes  Issued 


Week  ending  on  Wednesday.  May  22,  1918. 
rSSUE    DEPARTMENT. 
i 


80,492,620 


Government  Debt . . 
Otber  Securities    .. 
Gold  Coin  and  Bullion 
Silver  BuliioD 


^80,492,620  ! 


11,015,100 
7,434.900 

62,042,620 


£80,492,620 


'Propfletors  Capital 

Rest 

Pubiio  Deposlts(inoludlng 
Bxcbequer,  Savings 
Banl{s,  Commissioners 
of  National  Debt,  and 
Dividend  Aooounts) .. 

Other  Deposits 

Seven  Day  and  other  Bills 


BANKING    DEPARTMENT. 

14,553,000     Government  Securities  ..  55,580,732 

3,125,106     Other  Securities    ..        ..  97,304,223 

Notes 30,246,290 

Gold  and  .Silver  Coin      ..  590,426 


38,433,960 

127,600,432 

19,173 


Oatcd  May  23,  1918. 


f  183,721 ,671 
HARVEY,  Cliief  Cashier. 


£183,721,671 

E,  M 

BANKING     DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
■corresponding  return  last  year. 


^.Ast  year. 
May  23. 


£ 

3, 174,592 

47,119,602 

131,604,304 

33,960 

45,044,406 

xi6,6io,6o7 

35.960,000 


i 

38,695,975 

55,076,420 

•9'5  PO. 

S      ., 


Liabilities. 
Rest 

Pub.  Deposit*  ., 
Olber    do. 
7  Day  Bills 
Assets. 
Gov.  SecurlileB 
Otber        do. 
Total  Reserve.. 


NoteClrculalioD 
Coin  and  Bullion 
'Proportion  . . 
tBank  Rate 


May  15, 
1918. 


May  22, 
igiS. 


t  i 

3,180,036        3,125,106 

41,457,354      38,433,960 

133,620,292  I  127,600,432 

10,118  9,173 


57,316,732 
105,522.431 
30,181,637 


I 

49,976,550 

61,708,187 

I7'a  p.c. 

5      .. 


55,580,732 
97,304,223 
30,836,716 


i 

50,246,330 

62,833,046 

l8'6  p.c. 

5 


Increase. 


Decrease. 

1,736,000 
8,218.21.8 


9,954,208 


Increase. 

i 
269,780 
924,859 

I  *4  p.c. 


DeoreaM. 


655.079 


9,954,ao8 


PUBLIC   INCOME   AND    EXPENDITURE. 

(For  7  days  ended  May  18.) 


Revbnub. 


Expenditure. 


-Customs  

Excise 

Estate,  &c.,  Duties  . . 

Stamps 

Land  Tax  and  House  Duty 
Property  and  Income  Tax 
Excess  Profits  Tax  .. 

Land  Values 

Post  Office 

Crown  Lands 

Sundry  Loans.,        ., 

M  isceflaneous 

Bullion  advances  repaid    ., 
ForTreasury  Bills  for  Supply 
3%  Exchequer  Bonds,  1930 
5%  Exchequer  Bonds,  1922. . 
6%  Exchequer  Bonds,  1920. . 
National  War  Bonds 
War  Savings  Certificates.. 
4%  War  Loan,  1929-1942  ) 
5%  War  Loan,  1929-1947  )  * ' 
•Other  Debts  created  under 
War  Loan  Act,  1915,  and 
Finance  Act,  igi6.. 
Telegraph  Money  Act,  1913 
Under  Post  Office  RIy.  Act, 

1913 

Under  Military  Works  Act, 

1897.1903       

Under  Public  Buildings    ., 
Under  Housing  Act.. 
Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds  

'China  Indemnity 
East    Africa    Loan    repay- 
ments  

Suez  Canal  Drawn  Shares., 
Ways  and  Means  Advances 
Decrease      in      Exchequer 
balances       


i 

21,222,000 

1,880,000 

517.000 

35,000 

2  3,000 

330,000 

3,4tg,ooo 
10,000 
400,000 


100,000 

140,000 

66,151,000 


+8.885,000 
i,6co,coo 


2:,579,283 


18,000,000 
581,346 


£123.558,283 


National  Debt  Service 

Interest,   &c.,  on  War  Debt 

Development  &  Road  Impvt 

Payments  to  Local  Taxation 

Other  Consolidated  Fund 
Charges        

Supply  Services 

Bullion  Advances     . . 

For  Advance  for  Interest 
on  Exchequer  Bonds  un- 
der Capital  Expenditure 
(Money)  Act,  1904  . , 

For  Treasury  Bills   .. 

Other  Debt  under  War  Loao 
Acts,  1914-16 

For  War  Loan  and  Ex- 
chequer Bonds  under 
Section  61  of  Finance  Act, 
1916,  and  Section  34,  1917 

Under  Telegraph  (Money) 
Act,  1913 

Under  Post  Office  (Lon- 
don) Railway  Act,  1913  ., 

Under  Militar/  Works  Acts 

Under  Housing  Act,  1914. . 

Public  Buildings  Expendi- 
ture Act,  1903 

Old  Sinking  Fund,  1907-8.. 

Sinking  Fund,  1910-ir 

China  Indemnity 

East  African  Loan  . . 

Cunard  Agreement  Act 

Expenditure  Certificates   . . 

Depreciation  Fund  .. 

Suez  Canal  Drawn  Shares. . 

Temp.     Advances     Repaid 

Increase  in  Exchequar 
balances       


i 
4z6,ci8 
2.253i034 


54,600,000 
150,000 


52,038,000 
8,383.001 


2,400 

I,O0O,C00 
10,000,000 

602,942 


LONDON 

BANKERS' 

CLEARING. 

Date. 

Increase. 

Decrease. 

1918. 

1917. 

£ 

i 

January 

2,073,S24,000 

1,865, i25,roo 

208,099,000 

February 

1,605,654,0^0 

1,779,524,000 

— 

173,870,000 

March 

1,784,836,000 

1,492,825,000 

292,011,000 

— 

April 

1,446,306,000 

1,403,902,000 

42,404,000 

— 

May          I 

378,749,000 

364,965,000 

13,784,000 

— 

8 

384,904,000 

4r6,840,0  o 

— 

21,936,000 

15 

392,971,000 

338,984,000 

53,987,000 

— 

,,           22 

293,»9,oco 

332,276,000 

— 

36,677,000 

Total 

8,360,19,3,000 

7.984,441,000 

610,285,000 

234,483,000 

CURRENCY   NOTES. 

Return  of  Currency  Notes  for  the  week  ended  May  22,  1918. 

Issued. 

Cancelled. 

Outstanding. 

ii  notes         

105.  notes        

Note  certificates 
Previous  total 

(. 

4,244,854 

1,271,639 

270,000 

913,590.200 

1,812,428 
841,890 

669,527,336 

178,385,564 
39.799.517 
39,010,000 

919,376,735 

672,181,654 

247,195,081 

EUtio  of  gold  held  against  notes,  this  week,  13.40  p.c. ;  last  week,  13.23  P-c. 
FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.). 


Apr.  19,  igi8. 

Apr.  12,  1918. 

Apr.  20,  1917. 

Gold  coin  and  certificates      . . 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

t 
97,765,800 
02,763,800 
10,500,000 

i 
97,752,400 
81,594,200 
10,500.000 

66,030,400 
41,366,000 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

191,029,600 

170,964,400 

4,615,800 

189,846,600 

171,458,400 

4,709,200 

107,396,4100 

83,707,600 

530,200 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

366,629,800 
13.011,600 

366,054,200 
12,944.800 

191,634,200 
4,892,400 

Total  reserves  . . 
Bills  discounted— Members'. . 
Bills  bought  in  open  market 

379,661,400 
161,609.000 
61,655,400 

378,99*000 
142,561,400 
63,771,400 

196,526,600 

5,947,400 

14.585,003 

Total  bills  on  hand     . . 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec. 
All  other  earning  assets 

223,264,400 

9,335,000 

0,259,000 

658,6o« 

206,332,800 

10,847,400 

28,428,600 

754,200 

20,532,400 
7,243,000 

14,672,000 
3,067,800 

Total  earning  assets  . . 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 

242,517,000    ■ 
95,Soo 
77,435,200 

246,363,000 

363,000 

76,601,800 

45, 515, SCO 

494.600 

i3, 393,200 

Total  dedotns.  fm  gross  dep. 
5%Red.FundagFed.Res.bknts 
All  other  resources 

77,531,000 
81,800 
52.200 

76,964,800 
107,400 
64,800 

33,887,800 
80,000 
qi8,8oo 

Total  resources 

699,843.400 

702,499,000 

276,928.400 

Capital  paid  in 

Surplus 

Government  deposits  . . 
Due  to  membrs— Res.  account 
Collection  items 
Otherdepsinc  For. Govt  crdts 

14,965,000 
226,800 
15,099,800 
293,972,000 
51,244,000 
17,664,400 

14,949,600 

226,f00 

20,104,600 

298,907,400 

47,654,000 

17,054,200 

11,282,200 

8,397,600 
I43,5i6,6m 
25,771.200 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn— nettliab. 
All  other  liab,  in  for  Gov  crdts 

377,980,200 

302,857,400 

1,579,000 

2,234,200 

383,730,200 

299,875,400 

1,600,000 

2,117,000 

183,685,600 
62,87l,4co 

89,200 

Total  liabilities 

699,843,400 

702,499.000 

276,928,400 

Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Ratio  of  gold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined      

Ratio   of    total   res.    to   neti 
deposit  and   F.R.    note  lia- 
bilities comb  ned      .. 

636% 
58.0% 

60.8% 

62.9% 

6.. 9% 

58.8% 

60.3% 
62.5% 

101.6% 
*.7% 
84.8% 

1*EW   YORK  ASSOCIATED    BANKS   AND    TRUST    CO.MPANIES 
(dollar  at  4s.)- 


Mayi8, 1918 

Mayii,l9i8 

May  4,  191& 

May  19, 1917 

I 

i 

i 

(. 

Loans,  Discounts,  etc. 

918,980,000 

906,310,000 

902,902,000 

724,280,000 

Cash  in  Vaults  of  Membsrs 

Fed.  Res.  Bk 

— 

21,906,000 

21,138,000 



Aggregate  Reserves     . . 

106,360,000 

107,430,0x1 

111,892,000 

^ 

Excess  Reserve 

9,908,000 

8,582,000 

11,848,000 

12,050,000 

Nett  Demand  Deposits 



743,154,000 

752,010,000 

7i5,6i2,ooe 

Nett  Time  DepoMts     .. 

— 

35,942,000 

36,814,000 

39,648,000 

U.S.  Deposits  Deducted 

— 

70,766,000 

66,626,000 

— 

Circulation         

7,307,200 

7,272,000 

7,232,000 

5,738,000 

BANK   OF   FRANCE   (25  francs  to  the  £). 


Gold  In  hand 
Silver  in  hand 
Bills  disoounteJ 
Advances 
Note  oiroulatioo 
Public  deposits 
Private  deposits 
Foreign  BilU., 


May  16,  1918. 

May  10,  1918. 

May  24,  1917. 

I 

i 

133,754,840 

133,731,960 

129,416,600 

10.249,800 

10,233,000 

10.299,720 

43,655  760 

47,095,960 

18,495,800 

39,717,160 

39,960,240 

45,IJ8,I23 

1,082,561,120 

l,o!o,473,440 

775.780,360 

3,582,400 

1,873,760 

3,243,200 

120,718,320 

122,081,200 

95.152,560 

287,360 

284,760 

47.800 

Proportion  between  bullion  and  circulatiou  20.S2  per  cent.,  against  20.87  per 
cent,  last  week.  Advances  to  the  State  ^^658, 000,000,  increase  i  8,000,000.  The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratoriuin.'jfig, 165,640, 
decrease  i;38,8oo.  ind  at  the  branches  £24,348,800,  decrease  <;5o,c8o. 

BANK    OF    SPAIN  (25  pesetas  to  tht  £)■ 

1  I  I 

May  ti,  1918  May  4,  1918  April  27, 1918  May  12,  1917 


Gold        

Silver      

Foreleti  Bills    .. 
Disco  2D[!<  ana  dhort  Bills 
Treasury  Account,  &c. 
Notes  In  Circulation 


£123,558,283        Current   Accounts,   Deposittd    36,261,232 


'Bscluding  sales  through  banks  which  have  not  yet  been  brought  to  account. 


Dividends,  Interests,  &o. 
Sovernmeut  Seourities 


(. 

82,081,411 
28,152,710 
3,880,170 
30,359,143 
25,121,638 
118,043,430 


1,376,714 
2,465,340 


81,684,725 

28,200,850 
3,840,631 

30,522,723 

24,982,402 
117,755,436 

35,300,191 
1,657,095 
3,081,971 


{. 

81,589,031 

28,435.357 

3,838,743 

29,895,505 

25,085,924 

116,431,718 

35,406,764 

1,911,139 

3  169,589 


i 

56,597,053 

29,978,609 

3,705,575 

32,200,983 

25,252,718 

97,558,182 

30,473,4«l' 

1,162,301 

8,475.466 


5o6 


XTbe  Jiivestore'  IReview* 


May  25,   1918.^ 


IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  X). 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances 
Note  circulation 
Deposits 


May  15,  igi8. 


£ 
123,290,950 
7?,792.30o 
727,310,450 
joa,8oo 
59o,>93.5co 
387,568,500 


May  7,  1918. 


April  30,  igi8. 


£ 

123,247,750 
77,577,3S0 
678,879,400 
303,500 
990,116,600 
342,852,200 


£ 
123,239,800 
76,759,750 
694,389.400 
435.500 
591,039.650 
35Si75o.250 


May  15, 1917. 


127,742,150 
22,998,100 
463,889,650 
502,930 
410,314,950 
229,634,100 


Clearing  House   return     during    March    £459,815,355,   against    £420,879,905 
in  Ftbruary. 

NETHERLANDS  BANK  (12  Florins  to  the  £). 


Gold  and  Silver 
Bills  and  Advances 
Note  circulation 
Deposits.. 


May  iS,igi8. 


£ 

60,583.083 
16,527,415 
78,131,916 
4.938,333 


Mayii,  1918 


6o,77e,ooo 

18,080,500 

79.564,583 

4,858,750 


May  4, 1918 


£ 
60,763,666 
20,0621,750 
81,297.250 
__5,072,333 


May  19, 1917 


£ 
50,275,7^0 
14,709,666 
63,349,833 
4,719,250 


SWISS  NATIONAL  BANK  (25  francs  to  the  X). 


Geld  and  silver       .. 

Bills 

Note  ciroolatlOD 
Current  and  deposit 
aooonnts 


May   15, 1918 


£ 
17,307,276 
11,041,732 
27,248,168 

4,058,496 


May  7,  1918. 


£ 
17,289,952 
12,023,916 
57,904.152 

4,181,088 


April  30,  >9i8. 


■7,293,936 
11,559.972 
28,008,604 

3,315,280 


May  15,  1917. 


1 

15,753,836 
6,110,324 
20,272,944 

3,587,072 


BANK    OF    SWEDEN  (18  kroner  to  the  £). 


Gold 

Balance   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  .. 
Discounts  and  Loans 
Notes  in  ciroulption 
Deposits  at  notice  .. 


Apr.  13, 1918. 


£ 
14,327,000 

7,538,000 

3,901,000 
15,675,000 
33,855,000 

7,168,000 


Apr.  6,  1918.  Mar.  30, 1918.  Apr.  14, 1917, 


£ 
14,331,000 

7,307,000 

3,9M.ooo 
15,769,000 
34,662  000 

6,552,000 


£ 
14,337,000 

7,306,000 

3,920,000 
15,844,000 
35,037,000 

7,062,000 


10,727,000 
7,358,000 


,250,000 
,160,000 

,331,000 
,315.000 


BANK   OP   ITALY   (25  lire  to  tbc  £). 


Feb.2S,igi8. 


Total  aash 
Iniand  BltU 
Fcraign  BiNs     . . 
Advances 

GcvemmaiH  securities 
droulation 
DepocftE  at  notice 
Ouraent  i 


£ 

43,772.240 
29.816,360 
897,360 
24,284,400 
8.795.840 
367,249,200 
33»8*4.520 

Xtr^  90,520 


Feb  20, 1918  Feb.  10, 1918 


Mar.  1,1917. 


£ 

58,300,240 
29,404,200 
887,840 
20,564,920 
8,813,240 
264,926,160 

38,043, «20 
21,712,640 


£ 

,0"4,88o 
467,480 
.426,000 
346,440 
806,. 60 
,291,56? 
.555,849 
574. 56* 


'9i 
8, 
154. 
'9. 
II. 


£ 
.35«.56» 
2 1 7,64* 
8]S,92e 
412,400 
697,520 
63»,76o 
255,960 
,482,640 


BANK 

OF  NORWAY  (18  kroner  to  the  £i. 

April  30, 1918. 

April  22, 1918. 

April  15, 1918. 

April  30, 1917 

Gold 

Balance  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
Discounts  &  Loans. 
Notes  in  Circulation 
Deposits  at  notice. . 

6,733,000 

3,645,000 

712,000 

18,416,000 

19.741,000 

6,445,000 

£ 
6,734,(01 

3,590,000 

713,000 

18,450,000 

19,726,000 

6,457,000 

6,735,000 

3,648,000 

713,000 

18,572,000 

19.675,000 

6,736,000 

/ 

7,165,000 

4,il7,coo 

706,000 

I2,438,coo 

15.685,00c 

6,703,000 

LONDOW  COURSE  OF  EXCHANGE. 


Plaoe. 

Usance. 

May  16,  igi8. 

May  23,  1918. 

Sellers.  Buyers. 

Sellers. 

Buyers 

Amsterdam  , .     . . 
Paris      

Switzerland. ,     . . 

Genoa,  &o.  ..     . . 
Spain     

Lisbon  and  Oporto 
Copenhagen..     .. 
Christiania  . .     , . 
Stockholm   ..     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills. .     . . 

Cable  transfers 

Thret- months' bills  ..     .. 

Cable  transfers 

Cable  transfers 

Three  months' bills  . .     .. 
Cable  transfers  ..     ..     ,. 

Cable  transfers 

Cable  transfers 

.  Cable  transfers 

9-32 

27  13 
27-53 
18. go 
19-  '5 
4i-05 
1695 
654 

15.07 
15-03 
13-75 

9-37 
27-18 
27-58 
19.05 
19.40 
43-15 
17.05 

664 

303 

15.17 

15-13 

1385 

9  45 
27-13 
27-53 
19.18 
■953 
43-20 
16.85 

6-,i 

304 
15.10 
15  00 
13-72 

950 
27.18 
27-58 
ig.28 
19-63 
43-30 
16.9s 

31* 
1520 
15-10 
13-82 

FOREIGN  RATES  OF  EXCHANGE  ON  LONDOK. 


Parts,  cheques 
Amsterdam,  cheques 
Italy,  sight 
Madrid,  sight.,        ,. 
Lisbon,  sight .. 
Switzerland,  sight   .. 
Christiania,  sit;ht 
Stockholm,  sight 
Copenhagen,  sight   .. 
Petrograd,  sight 
Alexandria,  sight 
Bombay,  T.T. 
Calcutta,  T.T. 
Hong  Kong,  T.T.    . . 
Shanghai,  T.T. 
Singapore,  T.T. 
YoVohania,  T.T. 
New  York,  cable 
Buenos  Aires,  T.T... 
Valparaiso,  90  days.. 
Montevideo,  T.T.     .. 
Rio  de  Janeiro,  90  days 


Method  of 
Quoting. 


ct  o 


Francs  to  £1 
Florins  to  £t 
Lire  to  jf  i  . . 
Pesetas  to  £1 
Hence  to  milrels  . 
Francs  to  jfi 
Kroner  to  £1 
Kroner  to  £1 
Kroner  to  ^1 
Roubles  to  £10     . 
Piastres  to  £1 
Sterling  to  rupee. 
Sterlini;  to  rupee. 
Sterling  to  dultar. 
Sterling  to  tael     . 
Sterling  to  dollar. 
Sterling  to  yen     . 
Dollars  to  £1 
Pence  to  dollar    . 
Pence  to  peso 
Pence  to  dollar 
Pence  to  milreis  . 


25.224 

12.107 

25.224 

25.224 

53ld- 

25  224 

18.159 

18.159 

18.159 

94-57 

974 

1/4 

1/4 


24.58d. 
4-86» 
47-583- 

l6d. 


Last 
Wetk. 


Thi« 
Week. 


OPEN  MARKET  DISCOUNT.  Last  week.  Thisweek 

Percent.    Percent 

Tbirty  and  slity  day  remitted  3ft— 34  ■•    3A— 3i 

Three  months  ,,  3^      ..       34 

Pour  months  ,,  34      ,.       3I 

Sil  months  ,  31      ..        3$ 

Three  months  ene  inland  bills  4— 1    ..      4—4 

Four  months  4|~i    ••      4|~n 

Sii  months  4i— 1    ••      4i— 1 

BANK    AND    DEPOSIT    RATES.    Last  week  This  vreek 

Percent.    Per  cent. 

Bank  of  England  minimum  disootmt  rate        5        ••        5 

,,  ,,         short  loan  rates  —      ..        — 

Bankers' rate  on  deposits 3        ••        3 

Bill  brokers' deposit  rate  (call) 3        **        3 

,,  7  and  14  days'  notice  3^      ..        3I 

Current  rates  for  7  day  loans         3-^    ,.    3~-} 

„  {oioaliioans  ^J— 3    ..  24—3 

The  Week's    Stock   Markets. 

There  are  times  when  even  the  enthusia.sl.s  on  the  Stock 
Exchange  like  to  take  a  rest,  although  their  natural  in- 
clination— given  the  smallest  encouragement — is  always  to  go 
at  full  pressure  untir"the  safety  valve  blows  out.  It  is  an 
amiable  weakness,  judged  from  the  broadest  standpoint,  and 
if  the  public  occasionally  suffer  from  cold  feet  after  standing 
on  the  edge  of  Shorters  Court  it  is  at  least  arguable  that  the 
advantages  of  organised  guidance  to  speculation,  such  as  the 
Stock  Exchange  affords,  far  outweigh  the  individual  losses  that 
necessarily  occur  from  time  to  time,  .^t  present  neither  pro- 
fessional operators  nor  outsiders  seem  keen  to  plunge  deeply ; 
the  barometer  is  not  at  set  fair,  and  although  there  have  been 
glorious  days  a  cold  biting  snap  follows.  On  the  whole,  the 
tone  has  been  wonderfully  cheerful.  London  did  not  show  the 
smallest  sign  of  panic  after  the  latest  air-raid,  and  the  un- 
speakable infamy  of  bombing  our  hospitals  in  France  merely 
harden  our  determination  to  abolj.sh  this  evil  thing  off  the  face 
of  the  earth  whatever  the  cost  may  be.  The  wild-cat  cubs  of 
the  Kaiser  in  Coblenz,  Cologne,  Mannheim,  Src,  are  already 
squealing  for  mercy,  and  that  is  a  hopeful  sign,  coupled  with 
the  total  failure  of  the  Hun  offensive  on  the  Western  front  to 
develop.  So  we  may  be  of  good  cheer,  although  the  cost  is 
terribly  heavy.  Home  Railway  and  Foreign  Government 
stocks  have  been  particularly  well  supported,  and  perhaps  there 
is  no  better  indication  as  to  the  real  views  of  the  best-informed 
community  in  the  world,  notwithstanding  the  disabilities 
under  which  it  has  to  work  at  present.  Let  us  leave  it  at  that ; 
the  darkest  hour  is  generally  nearest  the  dawn. 

There  was  no  accumulation  of  business  over  the  holiday  to 
encourage  much  enthusiasm  on  the  Stock  Exchange,  and,  as  a 
matter  of  fact,  the  record  of  transactions  on  the  first  business 
day  of  the  week  was  lower  than  for  some  considerable  time  past. 
Nevertheless,  the  tone  was  generally  cheerful,  owing  to  the 
delay  in  the  long-advertised  German  offensive,  and  the  minor 
incidents  of  savagery  which  have  taken  place  do  not  afiect  the 
military  position.  War  Loans  were  well  supported  in  a  modest 
fashion,  and  Indian  issues  improved  a  good  fraction.  Colonial 
Loans,  however,  were  scarcely  mentioned,  and  the  movements 
have  been  quite  insignificant  in  this  particular  section.  Sbuth 
American  issues  have  come  into  strong  demand,  and  such  things 
as  Coloinbians,  l^ruguays,  and  Venezuelans  have  advanced  2 
to  3  points.  Brazilians  also  were  good,  and  in  other  directions 
French  War  Loans,  Greek  4  per  cents.,  Spanish  Fours, 
Japanese,  and  Chinese  issues  all  advanced  substantially,  and 
almost  the  only  weak  spot  was  a  further  slight  reaction  in 
Russians. 

Home  Railways  have  been  particularly  well  supported.  Of 
course  the  dividend  period  is  approaching,  but  that  by  itself 
would  not  help  matters  at  the  moment  if  it  were  not  for  the  fact 
that  the  figures  disclosed  in  various  official  reports  seem  to 
indicate  that  the  companies  will  be  able  to  command  better 
treatment  from  the  Government  after  the  war  than  seemed  at 
one  time  probable.  Americans  have  not  been  conspicuous,  and 
while  Erie  preference  lost  a  point  International  Mercantile 
Marine  rose  smartly  on  the  report  that  the  fleet  is  to  be  resold 
to  British  interests.  Canadian  Pacifies  .scarcely  moved,  but 
Grand  Trunks  have  been  exceptionally  strong,  with  advances 
ranging  up  to  as  much  as  5  points  on  the  guaranteed  in  the 
expectation  that  the  negotiations  for  the  expropriation  of  the 
company  will  be  more  favourable  to  the  shareholders  than  the 
first  Railway  Commission  suggested.  Canadian  Northern 
income  debentures  advanced  a  couple  of  points,  and  Mexican 
Rails  also  were  very  good.  Argentine  Rails  have  been  irregular 
with  a  dull  tendency,  owing  to  fresh  outbreaks  of  labour 
troubles,  but  nobody  pays  very  much  attention  to  the  daily 
fluctuations  in  this  market.  Antofagasta  had  a  very  sharp 
spurt,  which  carried  the  price  up  5  points  or  more,  and  San 
Paulo  also  improved. 

Bank  shares  were  not  much  in  evidence  except  as  regards  the 
Eastern  group,  which  were  in  strong  demand  owing  to  the 
excellent  reports  that  have  recently  been  issued  by  Indian, 
Chinese,  and  Japanese  companies.  Bank  of  .Austral a.sia  also 
advanced,  but  Home  Banks  had  nothing  much  to  boast  about. 
Breweries  opened  quietly,  but  later  developed  strength  in  the 
"  direction  of  such  speculative  stocks  as  Watney  Combe,  All.sopp 
and  City  of  London,  but  there  was  a  fair  demand  for  some  of 
the  lower  priced  debentures.  Xothing  occurred  in  the  Land 
section,  and  Egyptian   seciJrities  were  only  just  steady.      Ir^n 


Mav  25,   1918. 


^be  Jnvestovs'  IRevievv- 


SOT 


and  Steel  shares,  as  a  rule,  showed  considerable  strength,  and 
Metropolitan  Carriage  advanced  a  good  fraction  on  the  excellent 
report.     Nitrates  were  dull  and  irregular,  but  in   the  Shipping 


'  Last 
iWeek 


Consols 

War  Loan   3*° 

4*? 


This  jj 
Week  1 1 


1929-47. 

,  1929-42. 


India  3%  , 

.,   3i% 

AustraJian  5}%,  1920-23  . . 

Canada  4%,  1940-60 , 

.1       4j%.  1920-5 

Argentine  5%  1886 

Belgian  3% 

Brazil,  1913 , 

^^...       5%,  1914 

Chinese  1896  

,.       IQ12  .,., 

Egypt  Unified  4% 

Caledonian  defd , 

Gt.  Central  pra 

J,        „        dfd 

Gt.  Eastern , 

Gt.  Northern  dfd , 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd.  . 
London  Chatham  ord..... 
Canadian  Pacific 


E.  Indian  Guar.  4A  %  debs. 
Grand  Trunk  ortf.    

Do.  ist  pf 

Do.  3rd  pf 

Antofagasta  dfd 

B.  A.  &.  Pacific 

B.  A.  Gt.  Southern 

B.  A.  Western    

Cent,  Argentine  ord 

Anglo-South  American   . . 

Bank  of  Australasia 

Bankof  N.S.  Wales 

Barclay  &  Co.  "  A  " 

Do.       *'B" 

Capital  &  Counties   

Chartered  of  India    

Hongkong  &  Shanghai    . . 

Lloyds  

Armstrong,  Whitworth  . . 
Birmingham   Small  Arms 

Cammell-Laird 

Cargo  Fleet 

Davis,  D.,5/  

Dorman,  Long  

Associated  Cement 

Borai  dfd , 

Bovril    

British  Amer.  Tobacco  pf. 

British  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Kellner 

Eastern  Telegraph   

Castmans ....  

Gunard 

Fumess,  Withy 

P.  &0.dfd 

Royal  Mail 

Anglo  Argentine  istPf. . . 

BrazilTraction 

Darracq    

Anglo-Egyptian  "B"  .... 

Burmah 

Lobitos 

Mexican  Eagle  pf 

North  Caucasian 

Roumanian  Cons 


AHagar2/- 

Anglo-Dutch,  £1    

Anglo-Java  Rub.  2/-     

Anglo-Malay  2/ 

Ayer  Kuning  £1 

Brit.  N.  Borneo  Trust  £1 

Bukit  Cioh2/- 

Bukit  Mertajam  2/-  

Bukit  Serai  awang  2/-  .... 

Carey  United  ^i  

Chersonese 

Chevi  t  2/-   

Dalkeith  2/- 

Grand  Central  £1 

Highlands  £1 

Java  Investment  £1 

Johore  Kubber  Lands  ^i . . 

Kamunin    2/- 

Kinta  Kcllas  2/- 

Labu2/- 

Langen  Java  £1 

Linggi2/- ; 

London  Asiatic  2/- I 

Malayalain  £t ! 

Merlimau  2/-   [ 

Bechuanaland  Exp. . , . 

Brakpan  , 

Broktn  Hill  Prop.  (8/-) 

Cam  &  Motor , 

Central  Mining  [£iz)  . 

Chartered    , 

City  Deep      , 

Cons.  Gold  Fields  ..., 
Cons.  Langlaagte. .  .., 
Crown  Mines  (10/-)  .... 
De  Beers  did.  {£2  105.) 

East  Pool(^/-) 

East  Rind  

Geduld 

Gcevor  (10/-)   

Gov.  Areas  Mod     

Gt.  Boulder  t2/->    


56i  .N.S.W.  5%.  1921-3  . 
5i%.  1920-2  . 
5i%~  ■ 


,  5i%Debs 
New  Zealand  4%,  1929  . . 
Queensland  4^%,  1920-5., 
S.  Australian  5^%  1922-7. 
Union   of  S.  Africa  44%, 

J920-5     

Victoria  4i%.  1920-5 

Westn.  Aus.  4%    

French  War  Loan,  5%  .. 
Japan  4i%  (isl),  1905    .... 

,.        5%-  1907 

Mexican  5%,  1899   

Russia  4  % 

•  t      4J%,  1909 

.,       5%.  1906 

London  and  N.-W.     ... 
London  and  S.-W.  dfd,  . 

Metropolitan  

Met.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastem  , 

Sth.- Eastern  dfd , 


Chesapeake. 

Erie 

Southern  ... 


Leopoldina 

Mexican  ord 

San  Paulo  (Brazilian).. 
United  of  Havana 


London  8c  Brazilian 

London  City  &  Midland. . 
London  County  &  Westt . . 

London  Joint  Stock 

Nat.Prov.(jfio4pd) 

Do.  i£i2  pd) 

Standard  of  S.A 

Union  Discount 


Kynochs   

Nfond  Nickel  ord 

Nobel,  £1    

South  Durham  Steel  .... 

Thornycroft    

Vickers 

Forestal  Land 

Hudson's  Bay    

Imperial  Tobacco  •  C '  pf. 

Lever  Bros.  "  C  *'  pf 

Lyons,  J 

Marconi    .' . 

Maypole  Dairy  dfd 

Pears,  A.  &  F 

Underground  Inc.  Bds.  . . 


Coats 

Courtauids 

English  Sewing  Cotton  , 
Fi'ine  Cotton  Spinners  . . . 

Harrods  Stores 

Demais  Bros 

National  Steam  Car 

Rolls-Royce. 

Shell 

Spies  (10/-) 

Trinidad  Leaseholds  . . . 

Ural  Caspian 

Venezuelan 


25/6 

11/3 


Perak2/-  

Port  Dickson  2/-   

Rub.  Estates  Krian  2/-... 

Rubber  Trust  £1 

Sampang  (Java)  2/- , 

Seaport  £1 

Sengat  2/- , 

Seremban  ^^i , 

Sialang  £1    , 

Singapore  Para  2/-    , 

Singapore  United  2/-    .... 

Pataiing  2/- 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  £1   

Taiping  2/-  , 

Tandjoiig  £1   ^ 

Tandjong  Malim  £1.,. 

Tebrau  j^i  

Telogoredjo  ^i 

Terapeh  2/- 

United  Serdang  2/- ... 

Vald'Or  2;- 

Vallambrosa  2/- 

Kyshtim    

Mashonaland  Agency  . 
Meyer  &  Charlton    . . . 

Modder  "  B  " 

Do.    Deep ,.... 

Mysore 

Nigerian  Tin 

Pahang  (3/-) 

Rind  Mines  (5/-)    

Renong 

Rio  Tinto(jf5)   

Russo-Asi  itic 

South  Crcfty  (5/-) 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep   


except  for  a  slight  decline  in  Coats  the  changes  are  quite  in- 
significant. Miscellaneous  Industrials  were  firm  as  a  rule,  but 
no  change  of  any   importance  or  significance  occurred. 

Oil  shares  generally  showed  a  firmer  tendency,  as  might  have 
been  expected,  and  Anglo-Kgyptians,  Mexican  Eagles,  and 
*'  Shells"  were  in  demand,  but  Ural  Caspians  and  a  few  of  the 
other  more  speculative  classes  were  inclined  to  give  way.  The 
tone  in  the  Rubber  market  has  been  decidedly  dull,  and  the 
people  who  bought  some  time  ago  for  an  immediate  advance 
are  now  rather  anxious  to  jettison  their  bargains.  Prices  have 
consequently  been  on  the  down  grade,  and  with  the  price  of 
the  commodity  steadily  giving  ground  it  is  almost  surprising 
that  the  selling  pressure  has  not  been  much  more  pronounced. - 


LONDON    PRODUCE   MARKETS. 

The  markets  displayed  no  fresh  feature  during  the  period  under 
review,  and,  with  holiday  influences  apparent,  business  moved^ 
quietly  in  all  directions. 

Sugar  remained  unaltered,  with  fair  allocations  of  British: 
refined  goods. 

Coffee.— There  is  a  good  inquiry  for  all  mild  liquoring  sorts  on 

CURRENT    PRICES    OF    CHIEF    ARTICLES 

WEEK   ENDING    MAY  24,  1918. 


Last 
Week. 


Sugar— per  owt., 
duty  25,8,  98  % 
polarisation 

Tate's  Cubes      . . 

Crushed 

Granulated  ..     .. 

Lyle's  granulated 

Foreign  granu- 
lated, first  marks 
f.o.b.,  spot 

GermaiiCubef.o.b. 

French  Cube 

prompt 

Crystallised,  West 
India 

Beet,    68%    I.o.b. 

Tea— per  lb., duty 

I/-  lb. 
Indian  Pekoe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe    S->uobong 
Ceylon  Pekoe     .. 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe  Souchong 

Oocoa  —  per  owt 

duty  6d.  per  Jb. 
Trinidad — per  owt 
Grenada 

West  Africa..  ,. 
Ceylon  Plantation 
Guayaquil  ..  .. 
Ooff«fl — per    owt. 

duty  42/- per  cwt. 
Bast  India    ,.     ., 

Jamaica 

Costa  Rtca  ..  ,. 
ProvlalonB^ 

Butter,  per  cwt 
A.u&tralian  6nest 
Argentine     ..     .. 
Irish  Creameries 
Diitchdiuo..     .. 
Ru!^sian  finest     .. 
Paris  baskets 
Danish  finest 
Brittany     roils  — 

doz.  lb 

Bacon — per  cwt. 

Irish      

Continental..  .. 
Canadian  ..  . . 
Amerioao  . .  .. 
Hama— per  owt, 

Irish       

Canadian  ..  .. 
Amerioan      ,.     , . 

Oheese — per  cwt. 

Dutch 

Canadian  . ,  . . 
English  Cheddar 
Wilts  loaf  ..  .. 
New  Zealand 

Rice— per  cwt. 

Japan     

Rangoon  2  stars  . . 
Bg0— per  130. 

English 

Irish      

Danish 

Spelter— 

G.O.B.  as  to  posi- 
tion      

Flour— per  sack. 

Country  Straight 

Runs  ex  Mill .. 


£    8.    d. 


2  17 
2  17 


nom, 
nom. 


2  17    9 
nom. 

s.  d.  s.  d. 

I  4 

1  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

5   d.  s.  d, 

S6  0  90  o 
79  o  85  o 
55  o  65  0 
85  o  100  o 
up  to  90  o 


iio-o  135-0 
77-0  151-Q 
1 10-0  137-0 


252/ 

252/ 
nom. 
nom. 
nom. 
nom. 
nom. 

nom. 


188/ 

172/ 
17  7-172/ 
I 70/- I 80/ 

nom. 
162/- 165/ 
125/-165/ 

nom. 
nom. 
102/8-149/ 
nom. 
nom. 

-.    d. 
41     3 
26     3 

36  0-37  0 
34  6-35  0 
36  O  37  o 


^54  £50 
44/3 


This 
Week. 


£    s.  d 


3     4  9 

3    4  9 

2  17  9 

2   17  9 


Dom. 
nom. 


2  17    9 
nom. 

s.  d. 

I  4 

I  4 

I  4 

1  4 

I  4 

J  4 

I  4 

I  4 

1  4 

I  4 

s.  d.  s  d. 

86  o  90  o 
79  o  85  0 
55  065  o 
t"5  0100  0 
up  to  go  o 


HOG  135  0 

77  5  151  3 
110  0  ij7  0 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


188/ 

172/ 

169/- 1 72/ 

1 69/- 1  bo/ 

nom. 
:62/-i65/ 
125/- 165/ 


nom 

nom. 

102/8-149/4 

nom. 

non:. 

s.    .1. 
41     3 
26     3 


37  0-38  o 

55  0-36  0 

nom. 


£54  £50 
44/3 


Wool— per  lb. 

A  u  s  t  r a  1 1  an 
Scoured  Merino 
Scoured  Cr'ssbr'd 
Greasy  Merino 
Greasy  Crossbrec 
New  2ea 1  an  c 
(scoured)  Merinc 
Greasy  CrossbreJ 
Cape  snow  white 

Indlarubberp.lb 

Plantation,     Spot 
Crepe  . .    . . 


Coal— per  ton 

Durham,  best  . 

Seconds       . .  . 
Bast  Hartlepool, 

Seconds       ..  . 
Steams,  best 

Seconds       ..  . 

Lead— per  loo. 
English  Pig..     . 
i'oreign  soli,  net 

Quicksilver — per 

bottle  tirsthaod 


Tin— per  ton 

English  Ingots 

I>i3.    bars 
Standard  oash 
Tin  Plates, pec  box 

Oopper— per  ton. 

English,     Tough 

per  ton      ..     •• 

Best  Selected    . . 

Sheets 

Standard      . .     •  • 

Jute— pet  ton. 

Native    firsts    tor 
shipment 

OIU— 

Linseed,  per  ton. 
Rape,  crude   ... 
Cott'n  SeeiJ.oru.le 
Petroleum  Oil, per 

Bibs. 
Water  White 
Oil  Seeds, Linseed 
CaicMtta— pel  ton 
Spjt, 


Uape , 

Iron— per  ton 
Cleveland  Cash  . 

Tobacco  —  duty, 
uiunaniifactured 
8/2-10/4A  per  lb. 

Vuginiaiudt. 

Kentucky  leaf    . 

Latakia 

Havana..     ..     . 

Cigars,  duty  15/7 
per  lb.       . . 


Timber— Wood. 

Pitch  i'ine    ..     .. 
Indian  Teak 

Tarpentlne— 

American  Spot  . 

Copra— per  ton 
Malabar       . .     . . 

Ceyion 

F.M.S.  Singapore 
F.M.    Straits 


Last 
Week. 


£  8.  d. 

nom. 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


023 


nom. 

nom. 

nom. 

nom. 
32  6 
29    6 

£     8.  d 
nom. 

£29i-£28i 

nom. 


nom. 
nom. 
£364 
nom. 


nom. 

jriiq-£l23 

£149 
jTiio-iioJ 


^58 

^60    . 

i/ioi 
i/iii 


By  agree 

ment. 
£29-10^30 


I  6-2  6 

I  0— I  6 
nom. 

I  6-6  6 

2/  upds. 


300/ — 400/ 
j8o/— 700/ 


120/ 


46    o 

46  o 
45  ^o 
45  10 


This 
Week. 


Dom. 
nom. 
nom. 
nom.. 

nom. 
nom. 
nom 


0     2     2j 


nonx 
nonv. 
nona-. 
nom. 

32  6 
29  6- 

£  8.  a. 

nom. 


nom- 
nom. 
£355 
nom.. 


nom. 

£ii9-£i23 

:fi49 

£II0-I10i, 


£66 
Z60 

i/"4 


By  agree- 
ment. 
£2g-ioi'30. 


16-26 
I  o  -1    6 
nom. 
16-6    6 

2/  upds. 


00/—  400- 
380/ —  700 


118/ 


46  0 
46  0 
45  10 
45  10 


group  Koyal    Mails,    P.    and    O.   deferred,  and  Fumess,  Withy 
all  improved  materially.      Textiles  were   almost   neglected,  and 


the  spot,  but  inferior  descriptions  proved  slow  of  sale.  Auctions- 
were  of  moderate  extent.  Futures  remain  in  the  same  lifeless. 
state,  and  quotations  nominally  unaltered. 

Cocoa  in  steady  request   at  graded   prices,  but  offers  are   very 
sparingly  made. 


5o8 


Ubc  Jnveetore'  IReview. 


May  25,   1918. 


Spice. — Cloves  steady.  Zanzibar,  spot,  quoted  2S.  sd.  Pepper 
very  Brinly  held.  Fair  black  Singapore,  spot,  sold,  is.  jd. ; 
Tellicherry,  is.  5jd.  ;  white  Singapore,  spot,  2S.  5jd. ;  and 
Muntok,  2S.  6d.  Pimento,  spot,  sJd.  Tapioca  quietly  steady. 
Fair  flake,  spot,  quoted  73d.  per  lb.  Cassia  Lignea  firm.  Whole 
selected,  spot,  quoted  92s.  6d. 

Shellac. — Only  limited  spot  sales  were  eflected  on  the  basis  of 
335s.  for  fair  T.N.,  while  May-June  shipment  was  named  at  305s. 
A.C.  garnet,  on  passage,  done  at  315s.,  c.f.  and  i. 

Rubber. — Business  moved  quietly,  and  prices  were  barely 
maintained.  Plantation  crepe,  spot  and  May,  sold  at  2S.  3jd.  <o 
2S.  3d.  ;  June,  2s.  3jd.;  July-September,  2S.  4jd.  ;  and  October- 
December,  23.  5d.  Smoked  ribbed  sheet,  spot  and  May,  done, 
23.  2jd.  to  2S.  2d.  Fine  hard  Para,  spot,  sellers,  3s.  ;  soft  fine, 
spot,  3s.  ;  and  Caucho  ball,  is.  8d.  per  lb. 

Gambier  firmly  held  at  75s.  for  spot  parcels  of  block. 

Corn  (Mark  Lane). — Steadiness  remains  the  prevailing  charac- 
teristic throughout,  though  the  amount  of  business  in  progress 
since  last  week  has  been  wanting,  due  mainly  to  restricted  offers. 
Some  No.  i  Northern  Manitoba  changed  hands  at  833.  3d.  ;  Aus- 
tralian, quoted,  85s.  6d. ;  No.  2,  Calcutta,  87s.,  all  landed  terms. 
Flour — English,  44s.  3d.  per  sack,  ex  mill  ;  Canadian  export 
patents,  51s.  3d.,  ex  warehouse.  Oats — Both  American  white 
clipped  and  Canadian  Western  No.  2  realised  6is.  6d.  and  63s.  6d. 
respectively.  English,  quoted,  at  47s.  3d.  Barley  remains 
nominal.  Maize  continues  difficult  to  obtain.  American  mixed, 
ex  ship,  79s.  gd.  to  80s. 

Cotton  (from  our  Manchester  correspondent). — This  has  been 
a  holiday  week  in  the  market,  and  business  has  been  practically 
suspended.  More  firms  than  usuaV  have  closed  down  for  the 
whole  of  the  week.  Numerous  employers  have  taken  the  oppor- 
tunity of  giving  their  stafls  a  holiday,  as  it  is  probable  that  no 
further  vacation  will  be  possible  during  the  remainder  of  the  year. 
The  feature  of  interest  has  been  the  decision  of  the  Control  Board 
to  still  further  restrict  production.  It  has  been  decided  that 
American  spinning  mills  and  all  weaving  sheds  from  June  10 
shall  only  work  40  hours  per  week,  instead  of  55J  hours,  and 
only  in  exceptional  cases  will  firms  be  allowed  to  run  more 
than  50  per  cent,  of  the  machinery.  In  Egyptian  spinning 
mills  the  percentage  of  machinery  now  allowed  to  be  run  will 
be  80  per  cent,  for  the  full  55 J  hours  per  week.  Levies  will 
have  to  be  paid  to  the  Control  Board  on  all  machinery  working. 
A  fresh  system  of  granting  unemployment  payments  to  the 
operatives  is  about  to  be  put  into  force.  In  piece  goods  for 
export  business  has  been  practically  at  a  standstill.  Very  little 
inquiry  has  come  through  from  abroad,  and  local  merchants  have 
not  been  at  all  disposed  to  anticipate  the  requirements  of  their 
customers.  The  increased  cost  of  production  as  a  result  of  the 
action  of  the  Control  Board  has  had  the  effect  of  causing  a  distinct 
advance  in  yarn  and  cloth  prices.  American  spinners  have  put  up 
their  quotations  about  Jd.  to  id.  per  lb.  In  Egyptian  yarns  the 
rise  has  been  2d.  to  3d.  per  lb.  The  higher  prices  have  been 
resisted,  but  all  spinners  are  in  a  very  strong  position,  and  can 
afford  to  be  very  independent  in  their  attitude  towards  buyers. 
The  wages  question  has  been  settled  by  an  agreement  providing 
for  an  increase  of  25  per  cent,  from  June  10.  All  operatives, 
numbering  nearly  500,000,  will  benefit  by  the  advance,  and  list 
rates  will  now  be  60  per  cent,  above  the  pre-war  level. 


APRIL     RUBBER    OUTPUTS. 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 

Period. 

Gross 
Profit. 

Nett 
Profit. 

Total 
Re- 
serves. 

Divi- 
dend. 

Carried 

For- 
ward. 

Borough     of    Portsmouth 
W'terw'rksCo.(JMar.) 

Do Prev. 

Inglis  and  Co (April) 

Do Prev. 

£ 
44.560 
44.020 

44.890 
2  7,680 

£, 

24,360 
23,260 
18.740 
19,910 

23,420 
4.730 

9.390 
2,610 

_£ 

36,000 
33.000 

31.030 
22,730 

% 

lO 

10 

\i 

5 

2 

£ 

6,500 

7.470 

13,280 

16,460 

4,860 
3.400 

Taylor's    Eagle     Brewery 
(Feb.) 

Do Prev. 

Wickens,  Pease,  and  Co. 

(Mar.) 

Do Prev. 

OILFIELDS     PRODUCTION. 


Anglo-Egyptian  Oilfields.— Week  ended  May  12  :  Gemsah,  21 
tons  (against  22  tons);  Hurghada,  4,632  tons  (against  4,477 
tons). 

Baku  Russian  Petroleum.— Week  ended  April  2;,  53,200 
poods. 

Bibi  Eibat  Oil.— March  17,  565  tons;  March  24,  504  tons; 
March  31,  503  tons;  April  7,  nil;'April  14,  298  tons;  April  21, 
266  tons.  Crude  oil,  nothing  doing.  Nominally  72  kopecks  per 
pood. 

European  Oilfields  Corp.— Week  ended  March  17,  56,100 
poods;  March  24,  56,250  poods;  March  31,  57,350  poods; 
April  7,  no  work;  April  14,  43,800  poods;  April  21,  41,200 
poods. 

United  British  Oilfields  of  Trinidad.— Week  ended  May  is, 
<>6s  tons. 


Company. 

Current 
Estimate 

LattAII- 
in  Cost. 

1 
April.    j(  +  )or(-) 
l£s.      1      lbs. 

7-~ 

§ 

s 

^Z^"* 

'*'.£.'-' 

Aboyne  Clyde 

444.374a 

1/0.50 

33, '91 

-  14,331 

4^6,490 

4-      32,923 

AUagar 

338,ioca 

1/1.62 

17.000 

—  13.100 

77.300 

—     41,000 

Alliance 

208,394a 

— 

•  5,«59 

—     1,216 

35.604 

—       2,041 

Alor    Pongsu 

376,412a 

1/0.75 

>3,400 

-     6/)56 

71.797 

—       8,806 

Ampat 

230,000 

>/3.53 

12,450 

=  n% 

119.370 

+           370 

Anglo-Java  .. 

a.525,395'' 

tit.lTO 

958.123 

+    103,420 

Anglo-  Johore 

302,1230 

I/3»o 

13,181 

—  8,650 

15,181 

—       8,650 

Anglo  -  Malay 

1,4(0,000 

i;o.83 

74.58« 

-  48,130 

3«7,<2i 

-    132,533 

Anglo-Sum... 

940,000 

/loj 

51,707 

-   i8,93« 

735.833 

—   132,905 

Asahan 

550,(00 

1/326 

41.868 

+     I0,220 

356,779 

-1-      31.400 

As.  T.Ceylon 

255  .coo 

— 

20,838 

—      1,225 

234,244 

+      19.414 

Aver  Kuning  . 

660,066 

1/0.38 

34,900 

—    20,600 

217,500 

-     48,771 

Dagan  Berai.. 
Bah  Lias  .... 

413,182a 

/11.82 

19,000 

-    13.198 

91,500 

-     31.604 

— 

1/9.46 

32,105 

+       8,670 

294,44' 

4-    I83,'37 

Bajoe  Kidocl. 
Baltap 

470,000a 

1/6.81 

64,000 

+     33.232 

64,000 

+      33.232 

285,000 

.— 

x8,ioo 

-1-       2.100 

I72,6co 

-     65,500 

l}ambrake]ly  , 

239,023. 

1/4.96 

I6,04S 

—      5.626 

16,045 

—       5,626 

Bantiar   Sum. 

440,000 



28,400 

+         399 

339, '80 

4-      49.'j67 

Bandjarsarie  . 

243,019a 

1/2.48 

20,705 

-     5  959 

85,830 

—     '2.847 

Ilandarapola  . 

285 ,600a 

22,500 

+      5,0:0 

60,800 

—      ",700 

Bantardawa.. 

340,000 

— 

•14,480 

—   15,020 

228,364 

4-      13,166 

Bantam 

915,000 

1/1.65 

*99,28l 

+    26,750 

701,207 

+      96.904 

Banteng 

434,000 

'/'■37 

♦22,690 

—     9,000 

379,«» 

4-       19,610 

Balak  Kablt.. 

440,000 

1/1.64 

16,000 

—   16,850 

291,248 

-      16,284 

Batang  Mai.. 

316,122a 

1/3 

16,043 

-     4,457 

85,106 

—       9.541 

Batu  Gaves  . . 

777.995a 

/9  13 

44,623 

-      1,826 

l67,9H8 

-     69,542 

„    Matang . 

185,000 

9,3" 

-     2,288 

151,458 

+      11,246 

,,    Rata     .. 

495,030a 

1/1.50 

25,000 

—   13.470 

4'3,I30 

—       4,700 

,.    Tiga     .. 

1/0.25 

33.000 

—  34,000 

201,000 

—     55.500 

Be'uf'rtB'rn'o 

236,00-0 

1/5-75 

19,000 

■H      4,000 

208,000 

—      28,000 

Bekoh 

540,000 

35,031 

-     4.469 

377,154 

—   19.424 

Beranang 

325,000 

tiZes 

14,728 

—     1,680 

247,267 

+     12,132 

Bernam-Per'k 

300,000 

15,207 

-     5.U3 

214,839 

-     19,4" 

Bidor . . 

454.000H 

1/1.83 

18,030 

—  18,970 

18,030 

—     18,970 

Bikam 

372,032 

1/3.62 

24,500 

—     3,500 

n2,8oo 

—     4',ooo 

Bode  .. 

264,930a 

1/5.22 

25,39' 

■1-     4.39' 

72,750 

-       8,550 

Bradwall       . . 

442,142a 

1/2.58 

20,233 

—   12,816 

148,699 

4-      11,728 

Braunston    . . 

500,000 

/11.80 

19,644 

—     9,356 

273,900 

4-     13.100 

Btit  BornPara 

210,500 

I/I 

i6,oco 

+      1,650 

208,330 

—     44,465 

British  Malay 

718,388a 

51,500 

+      3,049 

271,896 

+    102,007 

Brooklands  . . 

620,000 

i/2'r5 

40,653 

+     1,552 

541,649 

4-      49.24' 

Broome 

450,000 

1/442 

32.993 

+     5,798 

333,983 

4-      17.'90 

Bruas-Perak  . 

114,673a 

1/6.47 

7.607 

—        550 

13,836 

—        1.247 

Bukii  Cloh  .. 

229,000a 

1/0.38 

-  14,500 

85,000 

—       9.000 

„    Ijok    .. 
„    Kajang 

304,500a 

I/I.57 

21,500 

-f        500 

111,000 

4-      18,500 

940,000 

— 

41,318 

—  30,034 

10 

745,810 

-     42,577 

,,    Lintang 

280,000 

1/2  -73 

ai,ooo 

-f        460 

212,520 

—     17,670 

„    Mert'jm 

836,746a 

/10.74 

43.127 

—  21,572 

43,127 

-     21,572 

„    Panj'ng 

550,000 

1/1.60 

26,800 

—   10,700 

161,200 

—       6,800 

,,    Rajah.  . 

950,233a 

/11.20 

25,812 

—  23,556 

25,812 

—     23,5^ 

„    Semba.. 

75i,86on 

'/317 

39,600 

—  19,495 

202,715 

-     50,285 

Carey  United 
Castlefield   .. 

450,000 

1/0.07 

25,>^2I 

+    10,367 

247,801 

4-      70.250 

680,000 

28,800 

—   15,738 

446,282 

-     30.417 

Cent.  Trav... 

2^0, 275a 

1/2.34 

12,528 

—     1,982 

30,605 

—       5.525 

Ceylon     Para 

1,055.584" 

•44,674 

+        825 

140,623 

4-      11,011 

Ceylon  T.&R. 

235.031" 

i/4-3r 

22,203 

+     9.469 

83,903 

4-      32,745 

Changkat-Sal. 

1,013,000" 

1/0.47 

40,000 

—  30,000 

226,000 

—     64,000 

Ciiemb  Malay 

457,102" 

1/I-37 

16,515 

—   11,249 

99,1" 

—     28,132 

Cheras  ..     .. 

284,300a 

'/5-39 

16,500 

-        363 

86,500 

4-      11,081 

Chersonese  . . 

689,659a 

/10.58 

44,113 

—   12,242 

186,125 

-     3'.49« 

Cheviot . .     . . 

700,000      1/3.33 

32,000 

-     5.900 

i49,oSo 

-     30,790 
4-      35.089 

Chimpul 

250,000       1/6.9 

15,483 

-     5,638 

227,406 

Chota    ..     .. 

228,51  <a       — 

10,224 

—     5.416 

5'.76o 

—     17.979 

Cicely    ..     .. 

406,889a 

/11.44 

39.214 

—      '.399 

39.214 

—       1.J99 

Cluny     ..     .. 

244,892a 

«/2.54 

14,227 

+      1,626 

64.527 

-       6,466 

Cons.    Malay 

917.590" 

59.800 

+    16,645 

230,662 

—     28,353 

Dalkeith       . . 

"75.000 

1/4.78 

36,000 

•1-     2,500 

144,000 

4-      29,500 

Damansara  , . 

847,205a 

/11.05 

45,177 

-  22,865 

216,235 

-     61,478 

Dangan..     .. 

225,000 

— 

9,861 

-     9,145 

217,724 

f      40,270 

Dennistown. . 

580,671a 

— 

35,572 

-     9,428 

151,310 

—     34,054 

Deviturai 

276,536 

— 

•13.640 

—     9,610 

101,870 

4-      19.380 

Dimbula 

273,000 

'  — 

«75oo 

-        694 

56,800 

-       7.669 

4-    188,108 

Djasinga 

625,500 

r/6.57 

75,000 

+    33,295 

521,045 

Djember 

266,700a 

31,000 

+     9,000 

130,000 

4-      47.'0» 

Doranakande 

205,597a 

>/4-47 

14,600 

—       1.000 

48,500 

4-        1,400 

Duff  Develop 

804,470a 

1/7.40 

55.461 

4-         811 

268,398 

4-      37.748 

Dusun  Durian 

790.371" 

lio.jl 

•8,559 

-  38,185 

213,508 

-     43.341 

E.Ind.&Cey 

2ro,ooo 

r/i.i5 

21,457 

•(-       6,112 

69,817 

¥      18,207 

Edinburgh   . . 

360,000 

/9.I4 

15,000 

—    8,500 

102,000 

-   3i.yo 

Elphil    ..     .. 

252,000 

1/5.88 

15,280 

-     770 

65,684 

-     4.962 

Emerald 

565,700a 

r/a 

41.500 

+    4.050 

110,700 

i  iiin 

Eow  Seng    . . 

172,450a 

*4.8oo 

—    6,300 

31.550 

Escot     . .     . . 

244,520a 

1/2.32 

10,600 

-1-     8,000 

108,400 

-      2J,430 

Fed.  Malay  S 

1,845,000a 

1/9.50 

68,000 

-  66,-00 

1,676,00} 

—    35,'oo 

Fed.  Selangor 

402,706a 

/11.68 

18,830 

—  10,895 

18,830 

—   10,895 

Galaha  ..     .. 

>25.583n 



12,750 

+     3,077 

24,791 

4-       4.255 

Galang  Besar 

450,000 

— 

21,810 

-    17,190 

370,950 

-  5.800 

—  6,l8t 

Can  Kee 

200,000 



9,760 

—     2,447 

138,025 

Gating  ..     .. 

— 

1/5.38 

15,500 

4-        500 

■47,526 

4-      42,526 

Gedong . .     . . 

232,000 

1/0.64 

11,516 

-     8,947 

131,768 

4-        9.827 

Gen.  Ceylon  . 

868,000 

1/1.27 

52,600 

—  35,897 

215,990 

+      57,424 

Glen  Bervie.. 

300.000 

11,085 

-    9,421 

I54,33« 

4-        9,610 

Glendon,.    .. 

275,000 

— 

10,629 

—  '3,405 

123,911 

-     19  933 

Glenshiel     . . 

488,940a 

1/2.18 

25,700 

-    8.145 

127,670 

-     19.575 

Golconda 

— 

/10.63 

25,079 

—  20,838 

157,705 

-     59.943 

Golden  Hope 

287,000 

1/4.80 

15,078 

-     3.268 

106,672 

+     13.739 

Grand  Cent. . 

4,759.405a 

1/0.72 

371,977 

—  63,722 

1,348,317 

4-        6,912 

Gula   Kal'p'g. 

1,066,000 

l"i 

68,800 

-  40,391 

3t8,2oo 

—     25,561 

Harpenden  . . 

511, 107a 

/tl.49 

14,650 

-     6,Sii 

83. '5'' 

—     69,141 

Ilayoep..     .. 

512,405a 

41.759 

4-      2,270 

'7'.255 

4-      I7,"8 

Heawood     . . 

275,000 

1/1.5 

'3. '73 

—     3,359 

72,800 

—       3,028 

Hewagam     . . 

646,200a 

1/2.80 

36,600 

-     3,900 

132500 

4-        4  200 

Hid.  Streams 

242,739a 

12,000 

-     7.000 

65,506 

—     18,588 

Highlands    . . 

1,426,518a 

:/o.oi 

63,045 

-  33357 

33',749 

—   100,717 

Inch-Kenneth 

440,000 

1/3.7I 

23,982 

—     4,990 

" 

406,350 

4-      5.»20 

Insulinde 

330,000 

1/0.39 

19.300 

—     2,850 

9 

224,100 

f    13.09' 

,  ava  Amal.  .. 

315,000a 

— 

•71.000 

4--  7.300 

203,000 

4-      19,30} 

ava  R  &  Prod 
Java  Para     , . 

620,000 

— . 

38,000 

4-     6,030 

■43, '02 

4-      32,603 

265,692a 

1/1.20 

•53,786 

+    11,856 

151,007 

4-      31.016 

Jeram     . .     . . 

261,509a 

— 

6,888 

-     7.778 

6,883 

-       7,778 

Johore  Para. . 

190,362a 

1/2. 14 

15,500 

—          2  0 

10 

172,800 

4-      16,068 

„    Rub.  Lds 

1,147,348a 

■/3i 

64,248 

-    18,876 

4 '2,930 

4-    10l,3r9 

Jong    Landor 

680,000 

37.674 

—    10,826 

10 

510,336 

—     43.522 

Jugra     Estate 

416,536a 

1/0.60 

23.954 

-     3,745 

23.954 

-       3.745 

Jugra  Land  .. 

1,398,000 

/I002 

41.205 

-   18.833 

la 

1. '69. 345 

+     34.5'6 
—       7.000 

Juru  Estates.. 

165,200a 

I/I.88 

6,700 

-     7.800 

6,700 

Kajang  ..     .. 

39i,oaoa 

■/'•95 

24,8^0 

—        700 

115,460 

-       5.340 

Kali  Glagah. . 

224,617a 

19,100 
18,500 

4-     2,6oo 

19,100 

4-        3,600 

Kamp  Kua't'n 

362,500a 

1/2.07 

—   10,000 

105,500 

-     14,000 

Kamuning    .. 

8lo,ox) 

1/1-49 

9,310 

4-         310 

10 

639.770 

-   134,810 

Kapar  Para  . . 

1.075.138' 

/1091 

42,500 

-   19,209 

336,405 

4-        t,'30 

Karak     . .     . . 

241,019a 

14,003 

—     5,461 

7'.53l 

4-        2  106 

Kasintoe 

581,675a 

1/8.56 

42,000 

—     9  954 

188,275 

—      1,06} 

1 


Mav  25,   1918. 


^be  Jnvestors'  TReview. 


509 


Kawtr  Java 

Kepitigalla 

Kepong    . 

Kerala    . . 

KhotaTamp'n 

Killinghall    .. 

Kimanis 

KintaKellas.. 

Klabang. .     . . 

Klanang 

KomboK 

Kuala     Klang 
„     Kubu.. 
,,    Lumpur 
„     Nal 
,,     Pahi 
,,  Salaogor 

Kurau     . . 

Labu 

Lanadron 

Langat    River 

Lajigen,  Java 

LaBgkat  Sum. 

L'ngk'n  N.Br. 

Ledbury 

Lendu   . .     . . 

Linggi   . .     . . 

Locnnagar  . . 

Loa.  Asiatic. . 

Lumut  ..     .. 

Madingley    . . 

Maiedie. 

Manawale    . . 

Malacca 

Mal^yalam  . . 

Malaysia 

Malay  Pl'nt'rs 

Mknch'rN.B 

Membakut   . . 

MerguiCrown 

Merlimau     . . 

Monerakelle  . 

Mount  Austin 

Nagolle. .  . . 
Narborough.. 
NebodaCey. . 
N'wCroc.Riv. 
Nordanat 
N.  Borneo  St. 
N.  Hummock 
N.  Labis     .. 

Oriental 
Padang    Jawa 
Panawatte    . . 
Panagula 
Pantiya . . 
Parambe 
Pataling 
Pegoh    . .     . . 
PelmaduUa  . . 
Perak    . .     . . 
Permas  . .     . . 
Pilmoor. .     . . 
Port   Dickson 

P.P.K 

Preanger 
Prye       ..     ,. 
Rani  Travan 
Ratanui..     . 
Rangoon  Para 
Rembia  . ,     . . 
Ribu      . .     . . 
Rim       . .     . . 
Riverside 
Rubana  . .     . . 
R.  Es.  Ceylon 
R.  Es.  Johore 
R.  Es.  Krian.. 
Rubber  Trust 

Sagga    .. 
oampang  Java 
Sapong  . .     . . 
Sapulm'k'nde 
St.  George  . . 
Scot.  Malay.. 
Seafield. .     . . 
Seaport..     .. 
Sedenak 
Segamat 
Sekong  . .     . . 
Selaba  . .    . . 
Selangor 

..  Biv. 
Utd 
Seletar  . .  . . 
Sembilan 
Sempah..  .. 
Sendayan 
Sengat  . .  . . 
Sennab  . .  . . 
Serdang  Cent. 
Seremban  . . 
Shelf  ord 
Siak  ..  .. 
Sialang  . .  . . 
Sing.  Para  . . 
„  United. 
Straits  Rub. . . 
S.S.  Bertam  . 
Strathmore  . . 
SumatraCons. 

,,       Para 

,,  Prop. 
Sungei  Bahru 

„    Batu  . 

,,    Buaya 

„    Buloh 

„    Choh  . 

,,    Kapar. 

,,    Kari . . 

,,    Krian  ■ 

,,    Kruit  . 

,,    M't'ng 

,,    Purun. 

„    Salak . 

„    Siput. 

„  Way.. 
Sung.  Chumor 
Sunnygama. 


543,570a 

588,6500 

334,500.1 

250,000 

184,400 

344,000 

3go,oooa 

55313851 

301,412a 

502,010a 

594,000 

200,000 

138,950 

1,700,000 
l87,8oOfl 
200,000 
505,000 
283,30011 
970,000 

1. 401 ,373" 

735,000 
520,000 
290,000 
691,496a 

207,622(1 

2,026,857 

160,000 

l,56o,t92a 

199,731a 
170,243 
320,000 

4,043,800a 

I.354.I79« 
400,000 
337,366a 
548,923" 
4S8,oooa 
559,623a 

1,470, 236n 
135,000 

2,230,058a 

573.750a 

278,100a 

460,000 

625,030a 

624,364 

213,500a 

750,000 

350,000 

716,4300 

243,284a 

617,209a 

331,346a 

206, loot 

253,842a 

584,000 

600,000 

813,1970 

531,568a 

333,500a 
672,350a 
348,228a 

329,2420 

240,4900 

929,9310 

264,000a 
400,000 
435,000 
296,8730 

433.500a 

372,000a 
850,000a 
472,004a 
677,211a 
465,500a 
520,413a 

502,5000 
136,300a 
338,000a 

400,000 

533,471a 

614,000a 
1,040,515a 
435,000 
653,000 
450,000  ■ 
162,153 
528,000 
828,093a 
695,313a 

220,0C0 
210,000 
551,200 
240,1230 

515,000 

l,7co,coo 

355.535a 

974.750a 

177.650 

268,717a 

1,386,6440 

673,000 

513,000 

2,890,912a 

1,330,600 

436,000 

(j8o,0O3 

729,0000 

235.6CO 

362,000 

286,1500 

501,010a 

6i3,ooDa 

552,965a 

844,700a 

360,000 

618,492a 

439,70on 

304,8130 

307,9930 

727,300a 

190,000 

565,372a 

560,000 

984,620a 


1/3.30 

1/9.22 

1/4.30 
1/1.02 
/I 1.88 
/10.80 

1/2.34 
1/2.36 

/8.5 
/"■75 
1/1.72 
1/4.03 

1/396 
1/4-23 
1/3^ 

/1 1.74 

1/2.32 

1/2.24 
/II.34 
1/2.52 
1/11.62 

1/2.12 
1/4.67 
1/3-48 
l/4_ 

l/3_ 

1/632 
1/4-3 

1/1.43 
l/5_8 

1/1.79 

1/1.41 
1/7.05 

1/3.30 

1/5.807 

1/0.14 


/1 1.38 
1/5-3 
1/1.41 
1/4-83 
/n.89 


48,690 
1/3.20 
/II.57 
1/0.64 

1/0.90 
1/6.27 
1/6,10 

1/2.82 
1/6 
1/0.38 
I/5-5I 

/10.50 
/II-59 
1/1.52 

1/1.185 

1/8.8 

>/5-34 
/9-52 
/g.91 

I/3-I7 

>/4i 

1/1.61 
1/0.80 
1/3^8 

/loj 
1/0.67 

1/1.76 
I/I-77 
1/0.84 
/11.22 
1/0.89 
/9.18 
/11.B3 
1/1,36 
1/4.12 

1/4-17 
1/2.62 
/10.75 
1/2.85 
/10.069 

/10.52 

1/0.5 

/11.80 

1/4.24 

1/0.97 

1/ 

1/0.18 

1/3-34 


53.474 
40,450 
18,000 
10,151 
11,300 
15,657 

•38,500 

28,143 

8,145 

■^11,116 

24,550 

6,508 

8,161 

73,260 

•17,500 
13,665 
42,941 
16,230 
59,200 
70,2»6 
23,622 
47,000 
23,800 
24,300 
33.670 
13,000 
*II4,55C 

63,741 
61,500 

10,374 
10,868 
20,816 

212,900 
66,999 
23,661 
21,000 
43,387 
31,300 
48,833 
92,712 
11,800 

173,000 

49,920 
18,000 
47,780 
33,100 
3  ",487 
11,900 
26,020 
12,174 

40,000 
9,691 
35,478 
27,470 
18,140 
9.950 
24,892 
32,200 
6i,oog 
31,412 
15,650 
22,210 
33,560 
27.951 
9.826 

10,303 

55.762 

15,500 
24,000 
21.447 
23,480 
13,200 
19,700 
46,000 
39.399 
32.330 
18,300 
51,273 
29,000 
16,849 
29,500 
34,453 
17.679 
31,000 
40,848 
25.392 
41.015 
15.560 
12,100 
25.714 
48.363 
•5,8i7 

*J4,270 
13,790 
33.418 
11,860 

*23.536 
28,750 
92,233 
24,240 
61,182 
18,434 
21.134 
67,114 
40.788 
37,000 

127,000 
65,000 
26,968 
50,170 
57,000 
17,000 

*14,II2 
18,500 

'44.920 
33,000 
26,445 
41,900 
18,125 
30,254 
25.540 
12,388 
10,700 
49,200 
11,965 
27.450 
24,000 

*3«,436 


+ 

3,774 

— 

1,856 

— 

3.500 

— 

5.5>5 

— 

3600 

— 

9,338 

1 

+ 

8,000 

— 

8,948 

— 

14.J61 

— 

24,449 

— 

21.237 

— 

9430 

— 

2,834 

I 

— 

55.440 

1 

— 

1,000 

+ 

663 

— 

4.774 

— 

5.963 

+ 

10,650 

— 

60,590 

— 

337 

— 

30,232 

— 

1,194 

■I- 

2,500 

: — 

14.797 

— 

4,6:0 

— 

6;,842 

+ 

3.416 

— 

51.667 

— 

22,600 

_ 

5.392 

-H 

„3i5 

1 

— 

8,170 

— 

86,Soo 

t- 

3,547 

— 

7.324 

— 

3.236 

-^ 

7,668 

■t- 

4.333 

— 

8,288 

— 

3.285 

1 

■H 

22,550 

— 

2,810 

6,200 

1 

+ 

1,065 

— 

11,223 

— 

21,729 
6,100 

— 

29.334 

1 

— 

11.635 

I 

— 

11,040 

— 

6,154 

— 

13,975 

— 

3,229 

+ 

398 

— 

6,310 

— 

26,511 

— 

13.212 

— 

17,352 

— 

10,492 

— 

5-559 

I 

— 

3,290 

1 

— 

13,640 

— 

4.788 

— 

22,389 

I 

— 

8,680 

— 

38,694 

— 

7,200 

— 

3,oco 

— 

8,490 

-1- 

2,470 

— 

10,600 

— . 

7.  .300 

— 

11,187 

1 

+ 

2,922 

— 

29,140 

— 

20,011 

4 

+ 

20,333 

I 

—  3 

•f 

—  13.( 

—  34.( 

—  i6,c 

—  30.< 

—  7,5 

—  2,; 

—  20, i 


—  S,c 

—  I0,r 

—  24.f 

—  12 

-^ 

—  3 

—  43, 

—  10,3 
-t- 

—  100,f 

—  20,C 

—  7,i 

+  13,! 

+ 

—  3,< 

—  I,< 

—  17,: 

—  11.5 

—  i6,c 

—  10, a 

—  17,; 

—  5,! 
j —  12.] 

—  10,^ 
!+  5,i 
1-  2,! 
|-  14,: 

—  15.< 


53,474  I- 

53,474    — 

95,000  1  — 

33,833  |— 
3,700  |— 
242,940  |  — 
log, 200 

28,145 

68,286 
102.443 
135,550 

92,712 

115.169 

1,413,720 

62,500 

75.213  i  + 
192,531  — 

79,250  I— 
247,700  ]  + 
409,745  I— 
117.483  l-l- 
345.000 
143.200 

24.500 
I55.'i76 

13,000 

513.303 
27.408 

384,016 
603,700 

22,221 
132,002 

62,49: 
1.226,030 
196.399 
109,676 
lU,268 

43.587 
193,000 

48,853 
507,786 
182,101 
173,000 

157.639 
238,100 
134,000 
191,380 

■93.573 

52,800 

540,059 

292,829 

170,000 

9.691 

133.681 

66,150 

59.640 

48,948 
143.459 


,000 

9 

77 

4 

587 

4 

.659 

4 

.614 

4 

,000 

4 

,056 

4 

,296 

10 

,3.SO 

6 

,890 

4 

,050 

9 

.713 

4 

,047 

4 

,25 ! 

4 

,250 

12 

.384 

9 

,563 

9 

1 

,064 

5 

,030 

10 

.893 

10 

807 

4 

,894 

4 

83 

4 

.694 

4 

.446 

3 

.327 

10 

100 

10 

.948 

4 

,000 

1 

,848 

4 

.920 

12 

,630 

10 

,870 

12 

.956 

9 

.922 

4 

310 

7 

,500 

4 

,705 

4 

,000 

4 

.275 

10 

,.544 

4 

,900 

4 

.123 

4 

,376 

4 

,200 

4 

,835 

10 

,572 

4 

,000 

10 

653 

2 

207,180 
31,412 

199,868 
314,670 

33.560 

87.499 
234.951 

10,300 

149,838 
133.203 
106,500 
220,825 

93,880 

13,200 
108,100 
800,671 
120,150 

18,030 

87,000 
254,874 

369,000  — 

74.755  -t 

114,000  + 

103.437  - 

103.714  — 

l6:,ooo  I  — 

259.994  I— 

354.552  I— 

309,754  j-H 

111,470  — 

124,378  - 

168,526  j— 

238.357  — 
185,614  '— 

233.360  j■^ 
131,710  i— 
339,048  '— 

11,860  \— 
244,331  i-H 
412,587 
1.382,063 
107,067 
290,408 

94,521 

66,277 
272,920 
476,101 


712,0^0 

65,000 

114,362 

701,560 
751,620 
248,480 
237,773 

91,300 
383,960 
175,000 
146,492 
253,600 
273,185 

152,260 
124,070 
70,327 
77,736 

196,100 
156,844 
153,590 
400,474 
111,776 


3.774 

3.744 

5,000 

9930 

6,800 
22,180 
18,700 

8,948 
30,662 

9,337 
46,227 
27.219 
17.223 
30.690 

8.000 
19.437 
18,875 
16,555 
33.8:0 
68,560 
17.273 
15.591 
12,284 

2,500 
67,810 

4,600 
70,453 

3,767 
119,257 
19,400 

9,249 

14.963 

17.159 

165,150 

27.959 
26,636 
10,160 

7,668 

4  353 
57.026 
18,461 
22,550 
29,997 
13.3^0 

6,065 

23,690 
28,700 
27,361 
97,661 

38,989 
6,154 

14.863 

93 

3,785 

20,031 

7o.»43 

6,271 
10,492 
24,060 
19  460 
13,640 

2,014 
35.617 

8,680 

23.889  • 
23,061 
1.300 
5.296 
10,795 
10,6.0 
18,900 

107.317 

6,522 

40,141 

54,809 

119,175 

23,000 

17,428 

6.587 

5.535 

26,817 

35,000 

74,032 

2,154 

51,154 

25,345 

1,018 

38,449 

36,762 

34,556 

61,670 

4,200 

11.427 

I0,8gi 
46,581 
41.5S7 
104,124 
203 
17.730 
10,307 
29.195 
63.311 
54.903 

136.181 

20,000 

38,875 

95,080 
139.950 

71,840 

32,19! 
5,865 

68,  no 

42,800 

15,317 

29,500 

32.775 

58,733 

12,150 

32,632 

9,806 

35 

12,225 

36,243 

59,599 
406 


Taiping.,     .. 

700,000 

/10.29 

45.220 



8,280 

7 

360,584 



61,050, 

TaliAyer     .. 

1,080,000 

1/0.25 

48.500 

— 

33,000 

12 

S93.559 

— 

131.817 

Tamiang 

— 

43.565 

— 

27,216 

7 

461,828 

+ 

42,802 

Tangga    Batu 

172,569a 

1/3-59 

11.319 

— 

2,681 

4 

49.357 

— 

9.379 

Tangkah 

530,000 

1/6,41 

28,502 

— 

4.912 

7 

310,738 

■H 

63,242 

Tanj.   Malim. 

1,400,000 

1/5-50 

70,290 

— 

46.530 

10 

1,157.310 

■¥ 

155.430 

Tandjong     . . 

1.595.000 

1/3.18 

76,283 

— 

28,294 

10 

1,022,990 
292,658 

— 

137,397 

Tangoel 

308,000 

i/ii 

35.310 

•^ 

55,100 

10 

+ 

58,222 

Tebrau  . .     . . 

1,046,480 

1/10-70 

64.935 

•f 

16,777 

10 

662,471 

— 

106,070 

Teekoy  . .     . . 

250,000 

1/5-12 

13.640 

f 

3.070 

7 

— 

— 

Telogoredjo  . 

854,020a 

94,000 

-h 

16.000 

4 

335.000 

+ 

8i,9to 

TenomB'rneo 

479,840 

/lT-98 

38,000 

— 

1.900 

4 

184,000 

— 

5,500 

Third  Mile  . . 

198,833a 

20,000 

-f 

8,000 

4 

95.987 

+ 

45.352 

Tremelbye  . . 

750,000 

1/0.54 

17,000 

~~ 

28,500 

10 

495.200 

— 

92.300 

Trolak  ..     .. 

283,500 

l/2i 

20,910 

— 

3,021 

7 

190,206 

— 

♦.547 

Ulu  Rantau.. 

285,066a 

1/1.16 

15,644 

— 

275 

4 

83.814 

+ 

7j6 

U.  SuaBetong 

930,7240 

1/1.15 

40,618 

— 

23,280 

4 

196,438 

— 

87,157 

U.  Serdang  . . 

3.395.000 

1/3-96 

168,872 

— 

83.214 

8 

1,293,196 

— 

312,879 

U.  Sumatra.. 

1.137,750 

1/2 

+67,050 

— 

9.780 

I 

239,910 

-1- 

9,250 

U.  Teraiang. . 

803,000 

1/5.80 

*30,213 

— 

18,357 

8 

494,443 

-t- 

98,343 

Uva       .... 

183,692a 



12,172 

— 

4.350 

4 

61,303 

+ 

3,188 

Val  d'Or       . . 

360,000 



18,400 

— 

7,200 

6 

122,450 

— 

tJ'^5? 

Victoria 

250,000 

1/4-49 

19,000 

-f 

4.100 

10 

225,586 

+ 

88,486 

Windsor 

404,200a 

1/3.18 

26,000 

— 

4.020 

4 

113,400 

— 

9,596 

Woodend     . . 

256,772a 

25,721 

— 

1.675 

4 

57,092 

— 

l-^l 

Yam  Seng    . . 

— 

— 

13.158 

— 

18,626 

6 

l;8,43l 

— 

28,058 

Yatiyantola  . . 

520,823a 

— 

51.310 

+ 

8.943 

4 

135.598 

^ 

8,129 

a  Last  year's  crop. 


*  For  March,  or  previous  month. 


The  Week  in  Minos. 


The  holiday  has  naturally  had  the  effect  of  restricting  busi- 
ness in  the  Mining  markets  this  week,  and  the  tone  has  been 
dull  is  consequence.  Tin  shares  have  met  with  a  fair  measure 
of  support,  but  price  movements  have  been  erratic,  owing  to 
spasmodic  outbursts  of  profit-taking.  Broken  Hills  have  con- 
tinued to  be  under  the  influence  of  the  excellent  zinc  concen- 
trate contract,  which  assures  their  position  for  10  years  after 
the  war,  and  Mexican  shares  have  attracted  attention  on 
various  indications  of  an  improvement  in  political  and  economic 
conditions  in  the  Republic. 

South  xsn  West  Africans. 

In  the  South  African  market,  Mcdder  13's  have  relapsed  -^ 
to  7J.  Uedulds  3-32  to  2,  and  losses  of  -^  are  shown  by  Brakpans 
at  4I,  by  Hand  Mines  at  2J|,  and  by  Central  ilinings  at  6. 
Kast  Hands  marked  down  to  3s.  jjd.  on  the  official  statement 
foreshadowing  the  suspension  of  operations  in  the  not  far  dis- 
tant future,  but  there  was  a  recovery  later  to  4s.  3d.  buyers, 
while  the  debentures  were  quoted  at  55.  Robinson  Deep  "A" 
shares  have  risen  yi  to  ij,  in  expectation  of  a  dividend  next 
month,  and  Crowns  have  improved  to  2.  Heriots  remained  at 
i-rV,  the  passing  of  the  dividend  causing  no  surprise.  The 
Albu  group  reports  failed  to  affect  the  shares.  In  common 
with  other  Rand  mines,  the  operations  of  the  compani-3s  were- 
seriously  affected  by  the  shortage  of  native  labour  and  high 
w.-.rking  costs,  due  to  war  conditions.  Practically  all  members 
of  the  group  .suffered  a  loss  of  profits,  the  only  exception  being 
the  rich  Meyer  and  Charlton,  whose  yield  was  increased  by 
7s.  5d.  per  ton.  The  other  mines  being  low-grade  proposi- 
tions, operations  were  seriously  affected  by  the  rise  in  costs, 
which  also  caused  a  general  diminution  in  ore  rese;-v-;s  by 
raising  the  level  of  payability.  Among  Rhcdesian  .shares,  a 
mysterious  revival  of  interest  in  Cam  and  Moto's  c.-nisej  the 
price  to  rise  is.  6d.  to  12s.  Chartereds  have  been  active  at 
i6s.,  and  Rezendes  have  recovered  ^  to  n\.  Gaikas  have  re- 
lapsed 3-32  to  J'a.  Diamond  shares  have  been  fairly  firm,  and 
in  the  West  African  group  Ashanti  Goldfields  have  improved 
to  19s.   6d. 

Copper  and  Miscell.ineois. 

Copper  shares  have  been  neglected,  and  show  little  altera- 
tion, and  the  tin  group  has  moved  erratically.  Tincroft  ordi- 
naries rose  to  about  i6s.  on  the  abandonment  of  the  scheme 
for  the  conversion  of  the  priority  shares,  but  afterwards  re- 
lapsed to  13s.  6d.,  and  then  recovered  to  14s.  3d.  South 
Croftys  are  is.  6d.  higher  at  54s.  6d.,  Ipoks  is.  at  i8s.  6d.,  and 
Naragutas  is.  6d.  higher  at  20s.  But  East  Pools  have  re- 
lapsed IS.  to  2gs.  6d.  Of  the  Mexican  shares,  Santa  Gertrudis 
have  attracted  attention  on  the  good  return  for  April,  which 
brings  the  profit  for  the  past  six  months  up  to  _^i32,ooo. 
which  would  enable  a  dividend  of  7J  per  cent,  to  be  paid. 
Broken  Hills  have  met  with  some  support,  notably  South 
Silvers,  which  have  risen  J  to  iij^.  Golden  Horse  Shoes  rose 
to  2j  after  the  meeting.  Waihis  have  advanced  is.  3d.  to 
36s.  gd.  on  the  good  report.  Among  Indian  shares,  Kanbauks 
have  declined  is.  3d.  to  31s.  6d.,  and  North  .\nantapurs  yk  to 
lA-  


MINING  NEWS. 


Ai'ROR.4  We.st. — During  1917  this  mine  crushed  177,250  tons 
for  a  yield  of  ;^2i2,396,  or  23s.  iid.  per  ton.  The  profit  on 
working  was  ;i£'43,5i<),  against  ^'49,179,  or  4s.  lod.  per  ton, 
against  qs.  qd.  As  compared  with  1916,  the  yield  shows  a  de- 
crease of  2.63d.  per  ton,  and  working  costs  an  increase  of  4.23d. 
per  ton.  The  total  revenue  was  2^213.741,  against  ^^219,832. 
and  the  total  profit  ^44,864,  against  ;,f 52,049,  of  which  £2,f.(<7 
was  expended  on  shaft-sinking  and  the  balance  utilised  in  the 
reduction  of  the  debt  to  the  General  Mining  and  Finance  Cor- 
poration, which  now  stands  at  jf  12,252,  against  ;^44)777-  ^^' 
serves  of  ore  have  decreased  from  502,320  tons,  valued  at  5.62 
dwts.,  to  399.275  tons,  valued  at  5.54  dwts.  per  ton. 

New  GocH.-^The  scale  of  this  company's  operations  in  1917 
was  much  restricted.     It  crushed  253,000  tons,  against  365,000- 


5IO 


XLbc.  Jnveatoce'  IReview. 


May 


^3. 


1918. 


tons,  and  the  gold  produced  was  ji' 113,213  less  at  ;,f  242,309,  or 
19s.  id.  per  ton,  against  19B.  5d.  per  ton.  Working  costs  were 
increased  by  is.  lod.  to  15s.  5d.  per  ton,  and  consequently  the 
rate  of  profit  was  only  3s.  8d.  per  ton  instead  of  53.  lod.  The 
working  profit  was  £46, ^6^,  against  ^^107, 115.  Including  sun- 
dry revenue  the  gross  profit  was  ^50,106,  a  decrease  of  ^62,757. 
This  has  involved  a  reduction  in  the  dividend  from  10  per  cent, 
to  7i  per  cent.,  and  in  the  carry  forward  from  ;^75,05  to 
/■73,486.  Fully  developed  payable  ore  reserves  have  declined 
from  404,185  tons,  valued  at  5.32  dwts.  per  ton,  to  214,877  tons, 
valued  at  5.27  dwts.  The  ore  reserves  necessarily  reflect  a  re- 
duction in  view  of  the  approaching  exhaustion  of  the  ore  con- 
tents of  the  mine,  which  is  also  responsible  for  the  smaller  scale 
-of  milling  operations.  Only  a  small  amount  of  development 
work  has  been  done  on  the  20  City  Deep  claims  leased  to  the 
-company. 

Mkver  and  Charlton. — This  mine  established  a  fresh  profit 
record  last  year.  It  crushed  164,586  tons  for  a  yield  of 
^469,415,  or  57s.  per  ton.  These  figures  compare  with  176,879 
tons  for  ^^438,882,  or  49s.  7d.  per  ton.  Costs  were  is.  3d.  per 
ton  higher  at  20s.  5d.,  and  the  working  profit  was  /3oi,372,  or 
}6s.  7d.  per  ton,  against  /269,689,  or  30s.  5d.  per  ton.  The 
total  revenue  from  all  sources  was  ^483,296,  and  the  gross  profit 
,,^31,287  larger  at  ;<^3i5,253.  The  distribution  to  the  .share- 
holders has  been  increased  from  100  to  no  per  cent,  by  the 
payment  of  a  bonus  of  10  per  cent.,  and  ;fi5o,78o,  against 
^122,231,  is  carried  forward.  Ore  reserves  fully  developed 
amount  to  493,194  tons,  valued  at  17.66  dwts.  over  49.18  inches, 
as  compared  with  512,787  tons,  valued  at  14.5  dwts.  per  ton. 

RooDEPOOHT  United  Main  Reef. — In  1917  this  company  sus- 
taineji  an  appreciable  set-back  owing  partly  to  shortage  of 
native  labour  and  partly  to  higher  working  ca'^ts.  It  crushed 
357,113  tons,  a  decrease  of  55,.932  tons,  for  a  yield  of  ;if374,974! 
■or  21S.  per  ton,  agjiinst  jf 41 1,314,  or  19s.  iid.  per  ton.  Costs, 
however,  rose  2s.  3d.  to  20s.  per  ton,  leaving  a  profit  of  only  is. 
-per  ton,  against  2s.  id.  per  ton  in  1916.  The  working  profit 
was  ;,^i7,436,  against  ^^43,271.  The  total  revenue  was  £37<)fi()4. 
and  the  gross  profit  ^^22,157,  again.st  ^^49,922.  After  deducting 
certain  charges  the  carry  forward  is  reduced  from  j^i45,625  to 
^142,831,  which  is  represented  by  mine  equipment  and  develop- 
ment. Payable  ore  reserves  are  estimated  at  526,256  tons, 
valued  at  6.85  dwts.  over  45  inches,  as  compared  with  677,273 
-tons,  valued  at  6.03  dwts.  The  company's  liability  in  respect  of 
loans  has  been  increased  from  ;^295,305  to  ;^3iS,459,  so  that  the 
question  of  a  dividend  belongs  to  the  remote  future.  Addi- 
tional costs  involved  by  the  war  are  estimated  at  jf4o,ooo  per 
annum. 

West  Rand  Consolidated. — -Although  this  mine  managed  to 
crush  in  1917  413,310  tons,  an  increase  of  10,720  tons,  its 
production  and  profits  decreased  considerably.  The  yield  per 
ion  was  3s.  gd.  less  at  20s.  id.,  .so  that  the  production  decreased 
from  ^^480,154  to  £416,316.  Costs  were  reduced  by  gd.  to 
r8s.  gd.  per  ton,  and  the  rate  of  profit  was  reduced  from  4s.  4d. 
to  IS.  4d.  per  ton,  the  working  profit  being  ;i£'27,565,  as  against 
^85,977.  The  gross  profit  was  ;^65,949  less  at  ^^42,080.  After 
providing  for  certain  outgoings,  the  carry  forward  is  raised 
from  ;f 346,084  to  ;^ 361, 148,  but  this  is  not  available  for  dis- 
tribution. The  ore  reserves  have  decreased  from  1,600,000 
-tons,  valued  at  6.1  dwts.  per  ton,  to  1,267,918  tons,  valued  at 
V3  dwts.  per  ton.  Considerable  and  unsuspected  faulting  has 
been  met  with  in  the  lower  levels,  which  has  decreased  the 
■quantity  and  value  of  the  reserves,  and  rendered  a  change 
necessary  in  the  method  of  laying  out  the  mine. 

Golden  Horse  Shoe. — The'  accounts  for  1917,  after  being 
debited  with  ;f33.og4  for  development  expenses,  written  off, 
with  /8,oi)o  for  Australian  taxes,  and  with  ^12,000  for   Eng- 


lish income-tax,  show  a  balance  of  ;f  100,797,  against  ;^84,535. 
Dividends  amounting  to  5s.  6d.  per  share  (as  compared  with 
5s.  for  1916)  have  absorbed  ;f82,5oo,  and  ;£i2,5oo  of  debenture^ 
have  been  redeemed,  this  amount  being  written  off  plant  and 
machinery  account,  leaving  ;£'6,494,  against  ^6y6,  to  be  carried 
forward.  The  year's  production  was  ^30,886  larger  at 
;^4ii,546,  but  costs  were  is.  lod.  higher  at  28s.  sd.  per  ton. 
At  the  end  of  December  the  ore  in  sight  was  estimated  at 
748,352  tons,  valued  at  9.58  dwts.  per  ton,  against  709,819  tons 
at  the  close  of  1916. 

Anglo-Continent.al  Mines. — A  substantial  increase  in  profits 
is  recorded  by  this  concern  during  1917.  After  writing  <-rt 
.^3>434>  being  losses  on  investments,  the  profit  was  £2()fn\. 
against  ;^i7,oi6.  The  dividend  is  raised  from  74  to  15  per 
cent.,  tax  free,  and  ;f 6,393,  against  ;f 5,391,  is  carried  forward, 
subject  to  any  provision  that  may  be  required  for  revemir 
taxes.  No  provision  is  required  for  investment  depreciation, 
for  on  the  year  an  appreciation  is  shown.  The  output  of  tin 
concentrate  from  the  Nigerian  properties  was  271  tons,  against 
278  tons. 

Waihi  Gold. — Operations  in  1917  were  on  a  slightly  smaller 
scale  than  in  1916,  191,742  tons,  as  against  194,231  tons,  being 
treated.  But,  owing  to  the  higher  grade  of  the  ore,  the  yield 
rose  from  ;f35o,058  to  ^^370, 567.  Interest  amounted  to  /f2o,544, 
making  a  total  revenue  of  ^391,111,  against  ^^385, 296.  The 
profit  was  ;^i9,262  larger  at  ;^i93,9oi.  Dividends  amounting 
to  4s.  per  share,  or  20  per  cent.,  have  again  been  paid;  the 
sum  of  ;f  18,388  has  been  written  off  for  depreciation,  while  the 
carry  forward  is  raised  from  ;f35,352  to  ^'62,435.  On  account 
of  the  current  year  a  second  interim  dividend  of  is.  per 
share,  tax  free,  will  be  paid  on  June  i.  Following  on  the 
suspension  of  development  work,  the  ore  reserves  show  a  de- 
crease of  110,913  tons,  and  now  stand  at  65^  716  in  genera! 
account,   and  622,68(1   in    suspense  account. 


letters  to  the  EMtor. 


NEW    SOUTH    WALES  LOAN. 

Sir, — Will  you  allow  me  to  say  a  few  words  in  reply  to 
your  explanation  in  your  issue  of  the  i8th  inst.  on- the  subject 
of  New  South  Wales  borrowing? 

Your  article  suggested  that  the  New  South  Wales  Government 
is  arranging  for  a  loan  of  ^^5,000,000  for  public  works  during 
the  present  year.  The  authority,  however,  which  j'ou  quote 
shows  that   the  reference  was  to — 

1.  An  estimate  of  expenditure,  not  an  impending  loan  six 
weeks  hence ; 

2.  For  the  period  ending  June  30,   1918  ; 

3.  Such  expenditure  would  be  based  on  moneys  already  raised 
for  the  current  financial  year. 

1  repeat  that  I  know  of  no  arrangement  for  raising  ;f  5,000,000 
for  public  works,  either  before  the  end  of  June,  1918,  or  even 
before  December  31,  1918.  The  only  operation  to  my  know- 
ledge is  the  completion  of  a  large  redemption  loan  of  12^ 
millions,  which  falls  due  on  September  i  next,  and  it  is  under- 
stood that  these  loans  in  no  way  increase  the  capital  debt  of 
the    State. 

Yours  faithfully, 

C.  O.  Wade. 
Sydney  House,   Cockspur  Street,  S.W.   i. 

May  24. 
*♦*  We  are  only  too  pleased  to  have  misunderstood,   and  that 
the  floating  of  no  new  loan  is  in  contemplation. — Ed. 


MEYER    AND    CHARLTON 
GOLD     MINING    COMPANY,    LIMITED, 


(Incorporated  in  the  Transvaal.) 


Issued    Capital 


£200,000. 


ABRIDGED     REPORT     FOR    YEAR     ENDED    31st     DECEMBER,     1917. 

Tons  milled         164,586.  Per  ton  milled. 

i  s.    d.  s.       d. 

Total  working  revenue        •••     469,415  14  10         57    0.50 

Total  working  expenses       168,043     8     8         20    5.04 

Working  profit  301.372     6    2         36     7.46 

Total  profit  for  year  ;f315.253     4     7 

Balance  unappropriated  at  31st  December,  1916  122.231  11     6 

/437.484  16     1 

Less  Government  taxes,  etc.  66,704  15  11 

;^370,780    0     3 

Dividends.  Nos.  55  and  56,  of  50%  and  10%  bonus       220.000    0     0 

Unappropriated  profit  carried  forward     £150.780    0     2 

Fully  developed  PAYABLE  ORE  RESERVES  at  31st  December,  1917,  estimated  at  493,194  tons,  average  value  1766  dwts.  over  49i6inches.     In  addition  there 
were  59,749  tons  valued  at  1334  dwts.  over  4917  inches     These  reserves  have  been  paid  for  out  of  past  profits. 
The  working  profit  of  £ioi,^'j2  6s.  2d.  represents  a  further  record  for  the  Company. 

The  Total  Dividends  and  Bonueea  paid  by  the  Company  aggregate  £2,115,SOS  19b. 
Full  report  and  accounts  obtainable  from  the  London  Secretary,  T.  FREDERICK  THORNE,  63/64,  Winchester  House,  Old  Bkoad  Strkei,  E.C.j. 


May  25,   191&. 


XTbe  3nve6tot8'  IRevtew. 


5" 


PUBLIC     INCOME     AND 


EXPENDITURE. 

of    the 


The  following  are   the  receipts  into  and   issues   out 
Exchequer  between  April  1,  1918,  and  May  18,  1918:— 


Balances   in    Exchequer   on 

April  i~Banlc  of  England  . 

Banii  of  Ireland    . 


Revenue. 

Customs  

Excise  

Estate,  &c. ,  Duties 

Stamps 

Land  Tax > 

House  Duty    ) 

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Duties,  &c 

Land  Value  Duties 

Post  Office 

Crown  Lands 

Receipts    froi&    Sundry 

Loans,  &c 

Miscellaneous 


Estimate 

for  the 

Year 

1918-19T9. 


I  Total  Receipts 

into  the 
Exchequerfrom 
JApril  1,  iqiS,  to 
!    May  18,  1918. 


f 
19.361.578 
1,663,432 


21,030,030 


10,475,000 

6,007,000 

3,907,000 

983,000 

255.000 


19,596,000 
33,828,000 

70,000 
3,600,000 

50,000 

895 

1,084,308 


Revenue 
Total 


Other  Receipts. 

Repayment  of  Advances  for  Bullion   

For  Treasury  Bills  (tor  supply)    

For  5  per  Cent.  Exchequer  Bonds,  1922   

For  3  per  Cent.  Exchequer  Bonds,  1930    .... 

For  Wat  Savings  Certificates 1 

For  other  Debt  (War  Loan  Acts,  1914-1917)  . .  [ 
For  4  per  Cent.  War  Loan,  1929-1942,  and  5  peri 

Cent.  War  Loan,  1929-1947    

For  National  War  Bonds    i 

Temporary  Advances — Ways  and  Means . . . 


79.854.203 


100,884,233 


Total . 


559, 


*I00, 

118, 


690,000 
,6i6,oco 

799.500 
500,000 
.969,282 


,981,000 
482,000 


981,922,015 


Total  Receipts 

into  the 

Exchequer  from 

April  I,  1917,  to 

May  19,  1917. 


£ 

25,209,947 
1,225,912 


'6.435,859 


9,376,000 

6,765,000 

4,287,000 

758,000 

270,000 


17,005,000 

23,402,000 

101,000 

3,550,000 

50,000 

500 
674,983 


66,239,483 


9«.675.34» 

350,000 
252,499,000 
26,498,000 

5,700,000 
55.783,229 

81,500,000 

98,105,000 


'ii3.i".57i 


*£xc]uding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account. 


Expenditure 
AND  other  Issues. 


Estimate  for 
the  Year 
1918.19. 


Total  Issues 
out  of  the  Ex- 
chequer to  meet 
payments   from 
April  I,  igi8,  to 


Total  issues 
out  of  the   Ex- 
chequer to  meet 
payments   from 
April  I,  1917,  to 


May  18,  ;9i8.  \    May  19,  1917. 


Expenditure. 
Permanent  Charge  of  Debt  . . 
Interest,  &c.,  on  War  Debt .. 
Payments  to  Local  Taxation 

Accounts,  &c 

-Other      Consolidated      Fund 

Services    

Supply  Services    


Expenditure 


Other  Issues. 

■For  Advances  for  Bullion  

.For   Advances    for    Interest    on    Exchequer 

Bonds     under    the     Capital     Expenditure 

(Money)  Act,  1904    

Vnder  Telegraph  (Money)  Act,  1913 

tinder  Post  Office  (London)  Railway  Act,  1913 

-Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supply 

For  War  Loans,  Exchequer  Bonds,  &c., under 

Section  34  of  Finance  Act,  1917  

For  War  Expenditure  Certificates  under  War 

Loan  Act,  1916    

For  other  Debt  under  the  War  Loan  Acts, 

ign4  to  1917 

For  Depreciation  Fund  under    the   Finance 

Act,  1917  

Old    Sinking    Fund,    igio-ii,    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  (b)  .. 
Temporary  Advances  repaid— Ways  and  Means 


I      1918- 
I    May  18. 
balances  in  Exchequer—  j         £ 

Bank  of  England '  13,276,783 

Bank  of  Ireland \    1,630,998 


1917. 
May  19. 

£ 
20,641,344 
1,723,568 


Total. 


3,278,855 
20,940,633 

200,380 

242,079 
353,812,600 


378,474,547 


850,000 

84,909 

12,000 

106,300 

+545.436,000 

5,856,119 

ti6,3oo 

9,497,837 

3,660,022 

30,000 
23,000,000 


967,014,234 


14,907,781 


81,922,015 


i 
3.433.784 
7,26.^,820 

450,380 

240,756 
316,569,400 


327.955.140 


560,000 


84,909 
20,000 

175,400 
161,396,000 

56,210 


100,500,000 


590,747,659 


22,364,912 


613,112,571 


Memo.— Treasury  Bills  outstanding  on  May  18, 1918 •£986,893,000 

♦  Includes  ;f  131,000,  the  proceeds  of  which  were  not  carried  to  the  Exchequer 

within  the   period   of  the  account,  besides   a   part  (not  yet  ascertained  and 

'brought  to  account)  of  the  Bills  tendered  as  subscriptions  to  National  War  tionds. 

f  Includes  part  payment  of  Bills  and  Certificates  tendered  as  subscriptions 

.to  National  War  Bonds. 


American  Business  Notes. 

It  is  worth  noting  that  in  the  course  of  his  fine  speech'  to  the 
Red  Cross  mass  meeting  in  New  York  last  week,  President 
Wilson  interpreted  his  phrase  about  being  "too  proud  to 
fight"  which  led  to  such  depreciation  and  scoffing  when  first 
■uttered,  not  only  in  Europe,  but  in  America  itself.  "  I  could 
not  be  proud  to  fight  for  a  selfish  purpose,"  said  he,  "  but  I 
can  be  proud  to  fight  for  mankind."  And  when  he  went  on  to 
say,  "  if  the  enemy  wish  for  peace,  let  them  come  forward 
through  accredited  representatives  and  lay  their  terms  on  the 
table.  We  have  laid  ours,  and  they  know  what  they  are." 
That  is  true,  and  the  speech  as  a  whole  was  valuable  for  its 
emphatic  repudiation  of  any  colloguing  with  an  enemy  whose 
whole  attitude  is  insincere,  whose  sole  aim  is  to  deceive.  "  In 
the  centre  of  the  scene,"  said  the  President,  describing  the  pre- 
•sent  military  situation,  "four  nations  are  engaged  against  the 


world,  and  at  every  point  of  vantage  showing  that  they  are 
seeking  selfish  aggrandisement ;  and  against  them  twenty-three 
Governments  representing  the  greater  part  of  the  population  ©f 
the  world,  drawn  together  into  a  new  sense  of  community  of 
interest,  a  new  sense  of  community  of  purpose,  a  new  sense  of 
unity  of  life."  That  is  a  picture  to  dwell  on,  and  we  must 
never  lo.se  sight  of  it.     For  we  fight  to  set  the  oppressed  free. 

.\merica  is  going  to  spend  ^262.500,000  on  its  navy  this  year. 
Such  a  sum  is  calculated  to  place  the  American  navy  second 
amongst  the  navies  of  the  world,  and  not  only  is  it  to  be  large, 
but  it  is  to  be  well  provided  for  with  hospitals,  for  upwards  ol 
/2, 000. 000  has  been  voted  to  pay  for  the  enlargement  of  hos- 
pitals at  different  yards  and  in  many  cities.  It  will  include 
;f  200,000  to  be  used  for  the  building  of  a  hospital  overseas.  In 
ail  directions  the  United  States  is  coming  forward  to  take  its 
full  share  in  the  war  for  the  world's  redemption,  and  in  pro- 
portion as  its  share  increases  will  become  its  importance  as  a 
determining  factor  in  arranging  the  ultimate  terms  of  peace. 
In  that  fact  there  is  to  us  profound  consolation  because  we  have 
not  an  increasing  degree  of  confidence  in  the  discretion  or 
patriotic  wisdom  of  our  rulers  at  home.  They  are  the  servants 
of  our  "  Junkers  "  to  a  far  greater  extent  than  we  generally 
suspect. 

Grumbles  are  heard  in  the  linited  States  over  the  action  of 
Mr.  McAdoo,  Controller  of  the  Railways.  He  actually  has  the 
audacity  to  announce  that  under  the  new  order  of  things  there 
is  no  room  for  the  ornamental  individual  in  any  department  of  the 
railway  service.  Two  hundred  offices  in  New  York  belonging  to 
outside  railways  which  have  no  lines  running  into  the  city  liave 
been  closed,  and  numbers  of  high  salaried,  parasite  "  railway 
men  "  have  disappeared  with  them.  Nearly  1,000  railroad  traffic, 
passenger  and  freight  agents  were  thrown  out  of  employment 
on  the  I  St  inst.  And  the  reform  does  not  stop  there,  for  the 
Director-General  seems  to  have  plainly  declared  his  intention 
to  dispen.se  with  all  the  higher  officials  except  those  who  are 
directly  connected  with  the  operation  of  the  roads.  This  sweep- 
ing order,  -we  infer,  covers  the  position  of  railroad  directors. 
Quite  a  multitude  of  whom  will  seemingly  be  deprived  of  their 
sinecures.  A  monthly  return  of  the  salaries  paid  to  all  officials 
receiving  from  $3,000  to  .$io,oi->o  a  year  has  to  be  prepared, 
and  a  duplicate  sent  to  the  Director-General.  Separate  pur- 
chasing agencies  have  been  done  away  with,  and  the  whole  of 
the  wants  of  railways  for  material,  &c.,  are  to  be  provided  for 
by  one  agency.  No  expenses  are  allowed  to  be  charged  against 
the  Government  for  offices  devoted  to-  financial  and  company 
matters  as  distinct  from  matters  appertaining  to  the  physical 
operation  of  the  roads  themselves.  The  Government  is  not  to  be 
expected  to  pay  for  these  luxuries  until  it  has  been  satisfied 
that  the  expense  was  legitimate,  and  under  an  order  issued  on 
March  30,  the  Director-General  intimated  his  conviction  that  no 
salaries  or  office  and  travelling  expenses  of  officers  should  be 
paid  where  the  services  were  not  nece.ssary  to  the  working  of 
the  lines.  In  this  way  boards  of  directors,  lawyers,  pensioners 
retired  from  the  service,  and  an  immen.se  variety  of  touting 
excrescences  have  disappeared,  or  will  do  so.  Is  there  not  in 
sweeping  changes  like  these  some  hint  for  our  own  railway 
administration?  The  President  of  our  Board  of  Trade  is  busy 
rearranging  railroad  charges,  and  especially  concerning  himself 
with  the  raising  of  season-ticket  rates.  Has  he  done  anything 
to  cut  down  expenses  in  the  directions  just  indicated?  Do  our 
railroad  directors  fIouri,sh  as  usual,  meet  as  usual,  and  receive 
their  fees,  all  as  before  the  war?  Do  the  multitude  of  them 
with  their  families  and  belongings  continue  to  travel  free  from 
one  end  of  the  kingdom  to  the  other,  and  if  so  will  the  Govern- 
ment be  surprised  to  find  one  day  that  the  humble  people  who 
are  being  fined  to  maintain  this  luxury  may  turn  upon  them  and 
demand  a   squaring  of  accounts? 

fn  other  directions  the  Government  of  Washington  appears 
to  be  acting  in  a  democratically  thorough  fashion,  which  must 
be  disheartening  to  what  are  called  "profiteers."  For  in- 
stance, the  people  called  "  canners,"  thaf  is  to  say,  those  who 
make  up  tinned  meats  for  the  market,  salmon,  lobster,  &c..  kc, 
or  fruits  and  vegetables  of  all  kinds,  are  limited  in  the  range 
of  the  profits  they  can  charge.  The  cost  of  manufacture  is 
first  ascertained,  and  then  a  margin  is  allov;ed  of  so  many 
cents  according  to  the  article  or  quality  of  the  goods  canned. 
These  margins  are  considered,  according  to  the  Food  Ad- 
ministrator's announcement,  merely  as  guides,  but  prices  ex- 
ceeding those  set  by  the  limits  will  be  considered  unrea.sonable. 
This  is  a  very  far-reaching  order,  and  if  it  were  applied 
universally  would  entirely  change  the  character  of  business. 
Supply  and  demand  controlled  from  one  centre,  or  by  the  autho- 
rity of  a  chosen  body  representative  of  the  entire  trade,  might 
then  be  regulated  •without  violent  fluctuation  of  market  prices, 
and  without  the  scramble  of  individuals  to  overreach  each  other 
in  the  market.  Such  escapades  as  efforts  to  "corner"  wheat 
or  cotton,  to  fleece  the  consumer  for  private  gain,  would  become 
impossible,  and  railroads  which  have  hitherto  had  their  fingers 
on  the  pulse  of  the  community,  and  power  to  squeeze  that  com- 
munity to  the  profit  of  their  "  bosses"  to  the  utmost,  would 
have  neither  room  nor  inducement  to  follow  the  old  way.  It  is 
apparently  coming  to  this  in  the  United  States,  if  it  has  not 
already  come,  and  we  see  that  the  wool  output  is  to  be  turned 
over  to  the  Crovernment  at  the  prices  of  July  last  year,  and  no 
one  can  .sell  his  wool  to  any  other  purcha.ser  until  he  knows  for 
certain  that  the  Government  does  not  want  it.  Oh,  they  are 
getting  on   in   America. 

In   a   recent   pamphlet   upon   the   War   Loans  of   the   United 
States  and  the  third  Mbertv  Loan,  the  Guaranty  Trust  Co.  of 


512 


XLbc  Jnvestors'  IReview, 


May  ?5,   1918. 


New  York  declared  that  "  the  national  assets  of  the  V'nited 
States  equalled  the  combined  wealth  of  Great  Britain,  Russia, 
France,  and  Italy.  America  today  has  two  and  a-quarter  times 
as  much  wealth  as  Great  Britain,  four  times  as  much  as 
France,  and  eight  times  as  much  as  Italy.  It  is  the  richest 
nation  in  all  history."  Well,  we  are  not  disposed  to  quarrel 
with  that  estimate,  but  we  should  very  much  like  to  know  upon 
what  it  is  based.  Broad  assertions  of  this  kind,  unless  care- 
fully founded  on  fact,  are  apt  to  lead  people  astray.  N'ot  so 
many  years  ago,  before  the  war,  the  United  States,  for  all  its 
wealth,  was  the  greatest  debtor  nation  in  the  world.  Has  it 
really  reversed  that  position  within  four  years? 


Tea,  Oil  and   Rubber. 

There  is  evidently  terrible  distress  in  the  Kubber  market,  and 
it  is  becoming  so  acute  that  we  are  willing  to  withdraw  most 
of  the  chaff  we  have  expended  on  the  scheme  of  the  Rubber 
Growers'  Association  to  restrict  the  output  of  its  consenting 
members  by  20  per  cent.  Let  us  see  first  of  all  how  the  position 
looks  so  far  as  our  own  official  statistics  are  concerned,  and 
here  are  the  figures  taken  from  the  Board  of  Trade  returns  for 
April : — 


April. 

Four  Months. 

1917. 

1918. 

1917. 

1918. 

Centals. 
226,474 
188,205 

Centals. 

116,047 

27,921 

Centals. 
768,216 
557.249 
210,967 

Centals. 
487,242 
135.310 

Exports  

38,269 

88,126 

351.932 

It  will  be  seen  that  imports  fell  off  heavily,  but  exports  almo.st 
reached  vanishing  point,  with  the  result  that  we  retained 
almost  50,000  centals  more  than  in  the  corresponding  month 
last  year.  And  for  the  four  months  to  date  we  have  over 
140,000  centals  more  than  a  year  ago.  In  the  meantime,  the 
Uriited  States  have  placed  an  embargo  on  imports  (which  were 
going  more  and  more  direct  from  Singapore  to  Pacific  Coast 
ports,  instead  of  coming,  through  London  or  Liverpool),  and 
have  also  fixed  a  maximum  price  of  as.  jd.  per  lb.  As  the 
price  of  rubber  in  Singapore  f.o.b.  is  about  is.  8d.,  there  is 
a  big  margin  of  profit  "  if  the  pigs  are  brought  to  market," 
but  the  position  of  the  industry  does  not  look  encouraging,  and 
that  is  the  whole  point  we  have  been  contending  about  for 
months  past.  Not  long  ago  we  were  repeatedly  told  that  we 
were  trying  to  "crab"  the  industry,  and  our  opposition  to  the 
restriction  of  20  per  cent,  in  output  (affecting  only  one-third  of 
the  total  in  any  effective  sense,  quite  apart  from  the  competi- 
tion of  Brazil  and  other  "wild"  producers)  was  held  to  be  a 
sinning  against  the  light.  Now,  that  attitude  was  perfectly 
foolish,  but  it  may  be  necessary  to  explain  a  little.  Originallv 
the  idea,  if  we  could  make  head  or  tail  of  it,  was  to  maintain 
the  price  round  2s.  6d.  p>er  lb.,  and  we  were  convinced  that 
the  steps  taken  towards  this  end  would  inevitably  prove  futile. 
Also  the  idea  tliat  the  Governments  principally  concerned — 
Malay  States,  Ceylon,  Java,  &c. — should  compel  the  other  out- 
side producers  to  fall  into  line  appeared  to  be  too  futile  for 
discussion.  But  all  the  time  the  protagonists  of  the 
industry  seemed  to  regard  it  as  an  indefeasible 
right  that  they  should  be  able  to  make  a  profit  of 
anything  from  200  to  400  per  cent,  on  the  actual  cost 
of  production  !  We  could  never  subscribe  to  that  idea  with 
regard  to  an  agricultural  product  where  the  scope  for  develop- 
ment is  practically  unlimited,  and  we  have  always  been  strongly 
of  opinion  that  the  sooner  the  industry  got  down  to  a  strict 
commercial  basis  the  better  it  would  be  for  all  concerned. 
Now,^  the  United  States  have  been  the  great  sheet-anchor  of 
the  "  spoofers,"  and  the  enormous  increase  of  imports  into  that 
country  gave  a  certain  amount  of  justification  for  the  idea  that 
in  a  few  years  production  would  fall  behind  the  requirements 
of  the  trade.  But  anyone  who  understands  anything  of  Ameri- 
can methods  of  doing  business  knows  that  when  there  is  a 
"  boom  "  on,  prices  and  purchases  have  no  relation  to  actual 
conditions.  It  is  always  a  scramble,  and  those  left  in  at  the 
finish  have  to  make  the  best  of  their  bad  bargains.  The  Govern- 
ment has  now  decided  to  stop  this  gorgeous  gamljje,  and  it 
may  be  taken  as  absolutely  certain  that  in  fixing  the  limit  of 
imports  every  consideration  has  been  given  to  the  genuine  de- 
mands for  military  and  commercial  purposes.  And  so  we  now 
learn  that  the  Rubber  Growers'  Association  has  not  gone  nearlv 
far  enough— the  docked  stump  of  a  tail  mu.st  waggle  the  dog 
worse  than  ever  !  It  is  a  supremely  foolish  game,  and  unless 
some  scheme,  binding  for,  say,  five  years  over  qo  or  05  per  cent, 
of  the  world's  producers  can  be  evolved,  it  would  be  infinitelv 
better  to  let  things  find  their  own  level.  There  will  be  far  less 
trouble  and  heartburning  in  the  long  run,  and  infinite  di.sap- 
piointment  may  be  avoided. 


The  El.nF.R  I,ink,  Ltd.— Mr.  A.  T.  Crawford,  the  .secretary, 
informs  us  that  the  debentures  of  the  company,  having  all 
been  redeemed  and  cancelled  and  the  company  converted  into 
a,  private  one,  the  usual  issue  of  the  annual  report  and  balance- 
sheet  will  be  discontinued:  but  as  information  he  gives  the 
result  of  the  working  for  the  year  ended  December  31,  iQir  :— 
Profit  for  year,  ;f  70,400 ;  6  per  cent,  dividend;  reserve  fund. 
/,20,ooo:  carry  forward,    /'58,4q8. 


DIVIDENDS    ANNOUNCED. 

Amalgamated  Zinc  (Dt  Bavay's). —  1-.  per  share  to  be  paid 
June  7,  less  income-tax  at  the  rate  of  4s.  2d.  in  the  pound. 

Bengal  Coal  Co.  (of  Calcutta).— Rate  of  50  per  cent.,  the 
same  as  a  year  ago;  Rs.  3,00,000  forward,  against  Rs.  1,30,000. 

Canton  Insurance  Office. — Final  for  1916  of  $7,  making  $25 
per  share;  also  an  interim  of  $18  per  share  on  account  of   1917'. 

Cock's  Pioneer  Gold  and  Tin  Mines. — No.  6  of  is.  per  share. 
less  tax,  payable  June  5. 

Dominion  Bank  (Canada). — Usual  quarterly  3  per  cent.. 
payable  July   1. 

Great  Boulder  Proprietary  Gold  Mines, — Interim  of  yd.  per 
share,  less  tax,  current  year ;  the  same  as  a,  year  ago. 

Kombok  (K.M.S.)  Rubber  Co.— Final  5  per  cent,  (actual), 
1917,  making  12^  per  cent,  for  ^ear.  For  1916  the  dividend 
was  20  per  cent. 

Lipton. — Balance  on  ordinary  shares  of  8^  per  cent.,  making 
12J  per  cent,  for  ye.ar  (against  7^  per  cent.),  after  placing 
.ii  125,000  to  reserve. 

London  and  River  Plate  Bank. — Interim  of  6  per  cent.  (i8s. 
per  share)  for  year  ending  Sept.  30  next,  less  tax,  payable 
June  14,  the  same  as  a  year  ago. 

Meters  (Ltd.),  Manchester. — Further  dividend  at  rate  of  12 
per  cent,  per  annum,  making  8  per  cent,  for  year,  against  7 
per  cent.;  ;ii'4,ooo  to  reserve,  against  ;f 2,000;  2^5,215  forward, 
against  ;!f4.o27. 

New  England  Breweries  Co. — 4  per  cent,  on  preference  share.i, 
making  8  per  cent,  for  year  1917. 

North  Hummock  (Selangor)  Rubber  Co. — Interim  of  5  per 
cent,  (less  tax)  for  year  ending  June  30,  1918,  against  10  per 
cent,    a   year    ago. 

Sagga  Rubber  Co. — Interim  of  10  per  cent.,  being  2s.  per 
share  (less  tax),   against  5s.  a  year  ago. 

Stanton  Ironworks  (Nottingham). — Final  9  per  cent,  on  the 
ordinary  shares,  making  15  per  cent,  for  year,  together  with  a 
bonus  of  5  per  cent.,  less  tax  in  both  cases,  the  same  as  last 
year. 

Zinc  Corporation. — 2S.  per  share  on  preference  shares,  being 
first  half  of  fixed  preferential  dividend  of  20  per  cent,  for  1018, 
payable  July  1,  less  tax,  at  3s.  6d.  in  the  /.  Final  participat- 
ing dividend  on  both  classes  of  shares  for  1917  of  2s.  .6d.  per 
share,  less  tax,  at  3s.  6d.  in  the  ^,  payable  October   i 


Belgium's  Resurkection. — So  absorbed  do  we  get  in  the 
iucidents  of  the  long  war  that  when  we  think  of  our  Allies  it  is 
nearly  always  only  their  fighting  capacity  that  the  mind  turns 
upon,  but  every  country,  even  our  own,  is  more  and  more 
occupied  with  the  preparations  for  its  recovery,  for  the  pre- 
servation of  its  civilisation,  and  the  improvement  thereof,  when 
the  war  ends.  Belgium,  above  all,  seems  to  be  energetic  in 
this  respect,  as  Dr.  Henry  Schoen  tells  us  in  one  of  the 
interesting  articles  on  current  financial  and  economic  afiair< 
which  he  has  been  contributing  to  L' Actualiti  Financier t.  Be- 
lieving in  the  maxim  that  self-help  ensures  God's  help,  the 
Belgians  have  set  to  work  to  create  organisations,  so  as  to  bo 
in  a  position  to  resume  her  place  amongst  the  progressive  civi  . 
Used  and  commercial  nations  of  the  earth  when  peace  return - 
The  Government  is  busj'  furthering  the  same  noble  purpost . 
nevertheless  the  principal  impulse  appears  to  come  from  tbi 
private  initiative  of  the  great  leaders  of  Belgian  industry  an.l 
commerce.  There  is  an  official  organisation  as  well,  and  they 
work  in  harmony  with  each  other,  but  the  planners  and  guide.> 
of  the  campaign  are  merchants  and  manufacturers,  a  consider- 
able group  of  whom,  gathered  together  in  France,  has  been 
united  to  constitute  a  vast  buying  organisation  with  a  view  to 
assure  the  re-equipment  of  Belgian  industry  with  all  the  tools 
of  which  it  has  been  despoiled  by  the  rapacity  of  the  German 
thieves.  This  new  organisation  is  to  be  called  the  "  Comptoir 
National  pour  la  repris  de  I'activit^  en  Belgique"  (National 
office  for  the  resumption  of  activity  in  Belgium.)  This  organisa 
tion  has  already  succeeded  in  grouping  together  outside  Belgium 
1,300  adherents  who  participate  to  the  extent  of  5,300  shares.  It 
repudiates  all  notions  of  favouritism  or  protection  in  trade,  and 
has  no  intention  of  dislodging  existing  organisations;  its 
principal  purpose  being  to  remedy  the  actual  disorganisation 
and  to  restore  wherever  possible  such  of  the  equipment  of  in 
dustry  as  may  have  escaped  destruction  or  theft  at  the  hands 
of  the  enemy,  or  to  replace  what  has  been  entirely  lost.  No 
monopoly  is  aimed  at,  but  just  this  practical  work  of  puttins: 
the  country  on  its  feet  again.  The  Comptoir  will  take  hold  oi 
the  interests  of  its  members  and  proteges,  and  defend  them 
against  the  foreigner,  and  also  plead  their  cause  before  the 
Belgian  Government.  As  for  the  State,  it  likewise  has  been 
busy  making  ready  for  renewal  of  business  when  the  war  is  over. 
In  1916  and  1917  it  bought  or  has  had  built  numerous  ships  to 
be  ready  the  day  after  peace  returns  to  bring  to  Belgium  all  tht 
raw  materials  indispensable  to  the  re-establishment  of  her  in- 
dustries. Its  ambition  will  be  to  re-link  the  economic  resourfes 
of  Belgium  with  the  great  markets  abroad,  and  to  help  in  every- 
thing which  is  calculated  to  reawaken  the  energies  of  Belgian 
commerce.  The  work  to  be  done  is  enormous,  and  sub-depart- 
ments have  been  constituted  to  deal  with  various  branches  of  the 
restoration.  In  four  principal  directions  the  Minister  of 
Economic  Affairs  will  make  his  influence  felt,  that  is  to  say. 
in  industry,  in  commerce,  in  finance,  and  in  the  reparation  of 
war  destruction.  We  have  no  doubt  that  the  Allies  will  see  to  it 
that  Belgium  is  not  left  without  help  in  the  arduous  work  before 
her. 


NIav  25,   1918. 


Zbc  3nve8tor8'  IRevtew* 


S»3 


I 


t4i 


Aitsweps  to  Coppespondents. 

*,*  A  hoy  to  theso  Answers  will  be  posted  early 
each  week  for  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  tor  six  months,  or 
Bs.  9d.  for  three  months. 

Deposits  against  future  queries  may  be  lodaed 
with  the  Publisher. 

].  S.  p. — I'ossibly.  All  is  uncertain,  except  that  yuu  will 
have  to  wait  for  any  profit  o£  substance. 

Impoverished. — (i)  Ves,  but  do  not  buy  much.  (2)  We  see 
nothing  to  go  for  here  yet.  (j)  As  in  Xo.  1,  although  the 
trouble  is  by  no  means  over,  and  we  see  no  running  away  of 
markets. 

Jacobs. — (1)  More  distant  probabilities  uncertain,  and  the  pre- 
mium is  already  considerable.  We  hesitate  to  recommend  buy- 
ing now.     (2)  Quite,  dear  enough. 

X.  Z. — The  last  report  showed  a  very  small  profit  for  the 
year,  but  the  debit  balance  is  large.  It  owns  a  number  of  in- 
terests, some  of  which  seem  rather  hopeless,  but  there  are 
speculative  chances  in  others.  On  the  figures,  the  shares  are 
of  little  value,  and  should  only  be  averaged  as  a  pure  specula- 
tion. 

Dover. — (i)  Should  certainly  be  kept;  the  company  13  strong 
financially,  and  its  business  should  recover  when  we  have 
peace.  (2)  This  also  should  be  kept,  although  recovery  in  divi- 
dends may  be  slow. 

M.  A.  B. — It  is  quite  straightforward;  developments  are 
good,  and  the  shares  seem  a  fair  speculative  venture. 

F.  C.  G. — They  have  risen  rather  sharply  lately,  and  may 
fall  back  again.  If  they  drop  about  los.,  might  be  worth  atten- 
tion, but  it  will  take  time  for  the  company  to  get  under  way. 

K.  R.  R. — The  company  is  doing  very  well,  and  likely  to  con- 
tinue prosperous,  but  you  might  take  advantage  of  the  rise, 
and    sell,   .say,  half   your    holding. 

G.  D.  G. — The  company  is  doing  well,  and  the  shares  are 
woilh  taking.  If  you  do  not  care  to  find  more  cash,  you  can 
sell  any  part  at  a  premium. 


COMPANY  MEETINGS. 


EAGLE    STAR 


AND     BRITISH 
INSURANCE. 


DOMINIONS 


Facts  from  Italy, 

During  the  last  eight  months  of  the  curri-nt  fiscal  year— ;.«.. 
from  July  i,  1917,  to  February  28,  1918— the  revenue  of  Italy 
has  been  constantly  increasing,  notwithstanding  ti.e  loss  of 
two  provinces  and  the  e.xceptional  conditions  of  the  territories 
adjycent  to  the  war  zone.  Treasury  receipts  during  this  time 
reached  two  milliards  697  millions  lire,  surpassing  by  96 
per  cent,  those  of  the  corresponding  ante-war  period.  Still  more 
noteworthy  is  the  difference  between  present  revenue  and  the 
past  one  during  our  neutrality,  when  it  barely  reached  one 
nnlliard  315  millions,  or  less  than  before  the  European  war. 
The  average,  which  during  our  neutrality  was  of  164  millions 
))er  month,  in  the  current  fiscal  year  h,is  gone  up  to  337  mil- 
lions, and  the  average  would  be  a  much  higher  one  were  it  not 
for  the  loss  sustained  by  the  country  of  two  ol  her  wealthier 
provinces.  A  fresh  issue  of  bonds  at  three  and  five  years'  d;«te 
at  5  per  cent,  has  been  lately  decreed.  The  buyers  will  benefit 
by  the  same  favours  accorded  to  the   previous   issues. 

The  official  statistics  of  Italian  foreign  frade  during  1917 
have  just  been  published.  From  them  we  gather  that  while  in 
IC116  imixirts  amounted  to  8,390  millions  and  exports  have  been 
for  3,088,  in  1917  the  value  of  imports,  reckoned  at  the  same 
prices  as  in  iqi6,  went  down  to  7,732  millions,  and  exports  to 
2,259.  The  difference  is  hardly  to  be  ascribed  to  the  submarine 
war,  since  the  diminution  of  imports  from  abro;:d  is  shown  to 
be  about  8  per  cent.  If  we  compare  values  instead  of  quan- 
tities, as  reckoned  by  oflicial  statistics,  on  the  prices  of  1916, 
we  mu.st  add  50  per  cent,  to  imports  as  well  as  to  exports.  The 
rise  of  prices  has  been,  of  course,  larger  for  the  goods  we  bought 
from  abroad,  because  of  the  heavy  rate  of  exchance.  Accord- 
ing to  this  calculation,  imports  in  1917  were  equal  to  11  milliards 
and  500  millions  lire,  while  e.xports  came  to  less  than  three 
milliards.  The  whole  commercial  deficit  since  the  beginning' 
of   191S  amounts,    therefore,  to   about   16   milliards. 

We  have  imported  from  England  goods  to  the  val-ie  of  1,565 
millions,  while  exporting  there  but  324  millions.  From  the 
U.S.  imports  have  reached  the  huge  sum  of  three  milliards,  and 
Italy  has  exported  to  the  U.S.  179  millions.  -Ai^cntina  h.is 
sent  to  Italy  440  millions,  while  we  exported  there  in  millions. 
Tiritish  India  sent  us  goods  to  the  value  of  fio?  millions  and 
imported  from  us  49.  Our  foreign  trade  with  Switzerland  shows 
a  muih  fairer  balance  between  imports  and  exports.  Italy  ex- 
ported 439  million."*  while  buying  from  Switzerland  150.  Egypt 
exported  to  Italy  83  millions,  against  32  nf  imports.  With 
France  we  were  nearly  equal  ;  exports  589,  imports  645.  Need- 
le*is  to  say  that  almost  the  whole  of  imported  goods  are  con- 
nected with  the  war. 

Some  good  results  have  been  obtained  throni;h  the  agricul- 
tural work  done  by  soldiers.  -About  a  thousand  hectares  have 
been  tilled,  vielding  40,000  quintals  of  such  prodiicts  ns  pota- 
toes, vegetables,  cereals.  Src.  No  less  successful  h,ns  been  tlje 
raising  of  rabbits,  poultry,  pigs,  S;r.  The  whole  profit  was  one 
million  lire,  including  the  co.st  of  animals,  of  the  necessary  im- 
plements, and  so  on.  By  order  of  the  War  Offive,  the  food 
remnants  from  military  kitchens  is  to  be  used  to  feed  the  pigs 
and  poultry  belonging  to  each  regiment. — From  our  Italian 
Cnrrcspondent. 


The  ordinary  general  meeting  of  the  lOagle  Star  and  British 
Dominions  Insurance  Company,  Ltd.,  was  held  on  Thursday 
at  ^i,  Moorgate  Street,  E.C.,  Sir  Edward  il.  Mountain,  the 
chairman    and    managing    director,    presiding. 

The  Secretary  (Mr.  John  Gardiner,  A.C.A.)  having  read  the 
notice   calling    the  meeting    and  the  auditors'    report. 

The  Chairman  said  : — ^It  gives  your  directors  great  pleasure 
to  be  able  to  place  before  you  a  balance-sheet  which  shows 
such  all-round  good  results.  In  conjunction  with  all  other 
insurance  companies,  the  abnormal  times  bring  difficulties  and 
anxieties,  which  compel  us  to  watch  our  business  from  day 
to  day.  The  techndcal  and  detail  work  ol  a  company  transact- 
ing a  business  of  our  dianensions  is  cxtiemely  large,  and  can 
only  be  perfectly  carried  out  by  an  organisation  established 
gradually  over  many  years.  Our  normal  organisation  must  be 
necessarily  upset  owing  to  the  large  number  of  our  trained  staff 
who  have  given  their  services  to  their  country.  The  combined 
staff  of  our  company  and  those  with  whom  we  have  amalgamated 
in  August,  1914,  consisted  of  329  men  and  37  of  the  opposite 
sex.  Of  these,  230  of  our  men  are  now  serving  with  his 
Majesty's  Forces.  Now,  turning  to  the  figures  in  the  balance- 
sheet,  in  the  marine  account  you  will  see  that  our  premium 
income  for  the  year  is  ;^i, 909,792,  which  is  an  increase  of 
£n2^,q'j2  over  last  year.  After  paying  all  expenses  and  making 
provision  for  income-tax,  excess  profits  duty  and  loss  on 
realisation  of  securities,  we  are  able  ftit  <  i  this  account  to 
transfer  ;f2i2,5oo — ^^150,000  has  been  written  off  the  cost  of 
the  businesses  acquired  ;  ^50,000  transferred  to  reserve  fund, 
which  now  stands  at  ;^25o,ooo ;  and  ^12,500  to  the  investment 
reserve  fund,  raising  this  to  ^92,500.  After  providing  these 
amounts  we  are  able  to  carry  forward  a  reserve  of  ;,f  1,231,162, 
equal  to  64.4  per  cent.  This  reserve,  in  our  opinion,  is  a  full 
one,  and  we  have  purp(j,sely  .kept  it  so.  With  regard  to  the 
general  situation  of  marine  insurance  business,  as  I  have  said 
on  a  previous  occasion,  it  can  be  roughly  divided  into 
three  headings — hull  insurance,  cargo  insurance  and_war  risks 
insurance.  Hull  insurance  depends,  as  to  whether  it  is  a 
profit  or  a  loss,  to  a  large  extent  on  the  cost  of  labour  and 
repairs  and  whether  the  premium  has  been  correctly  adjusted 
to  meet  altered  conditions.  .Since  the  outbreak  of  war  expenses 
have  been  con.stantly  increasing;  the  cost  of  materials,  the 
co.st  of  labour,  and  the  cost  of  docking,  &c.,  have  all  risen 
again  this  year.  It  is  estimated  that  the  increase  in  cost  of 
repairs  as  a  whole  in  this  country  since  the  outbreak  of  war 
is  not  less  than  150  per  cent,  and  in  America  not  less  than 
^00  per  cent.  Notwithstanding  this,  underwriters  have  only 
made  two  increases  in  rates,  each  of  10  per  cent.,  as  a  set-off. 
The  increased  value  which  owners  felt  it  wi.se  to  place  for 
insurance  purposes  on  hulls  has,  however,  operated  in  iinder- 
writers'  favour.  In  addition  to  the  burdens  I  have  mentioned, 
there  have  been  a  very  large  number  of  extra  losses  occasioned 
by  collision.  These  have  constantly  increased  year  by  year 
since  the  war  broke  out,  those  of  last  year  being  much  in 
excess  of  previous  years,  .\nothcr  cause  of  loss  is  the  dangers 
of  navigation  owing  to  vessels  hugging  the  coast.  With  regard 
to  cargo  insurances,  while  the  risks  1  have  named  in  regard 
to  hulls  in  most  cases  apply,  there  has  arisen  an  additional 
one  for  cargo  business;  this  is  in  consequence  of  the  enormous 
accumulations  at  ports  of  shipment  or  transhipment.  A  very 
important  point  from  a  marine  insurance  point  of  view  is  the 
very  large  number  of  new  companies  which  have  entered  the 
field  both  in  this  country  and  in  America.  I  now  come  to  the 
fire  and  general  revenue  account,  which  embraces  our  accident, 
employers'  liability,  motor  and  indemnity  business.  Substantial 
progress  has  been  made  in  all  departments,  the  premiums 
amounting  to  ;if4q3,043,  an  increase  in  the  year  of  /'i8i,95o. 
This  increase — and,  in  factj.  practically  four-fifths  of  the  total 
premium,  income — is  the  result  of  our  own  efforts,  and,  like  our 
marine  business,  is  not  due  to  the  amalgamations  with  other 
companies,  sufficient  time  not  having  yet  elapsed  to  get  the 
full  effect  of  such  amalgamations.  While  the  building  up  of 
fire  and  general  business  is  an  expensive  matter,  I  am  glad 
to  say  that,  after  providing  full  reserves  for  losses  advised  but 
not  settled  and  setting  aside  35  per  cent,  for  unexpired  risk 
on  the  increased  premiums,  there  is  the  underwriting  profit  of 
/'i6,ooo  apart  from  interest,  which  added  makes  the  credit 
balance  /'25.000  odd.  This  we  propose  adding  to  reserves, 
which  araoimt  to  no  less  than  ,,^251,905,  or  51  per  cent,  of 
the  total  premium  income.  Most  of  you  will  remember  I 
reported  to  you  last  year  that  we  had  seized  the  opportunity 
of  entering  the  fire  field  in  America,  and  we  have  now  had 
the  experience  of  a  full  year's  working.  Our  business  on  the 
other  side  is  in  excellent  hands,  and  is  being  conducted 
with  great  prudence  and  care.  With  the  disappear- 
ance of  German  and  allied  companies  from  the  field  an 
enormous  volume  of  business  is  open  to  British  companies, 
l'"ire  business  in  1917  was  a  variable  quantity,  and  -.hile  some 
comp.anies  had  an  excellent  experience,  that  of  others  Was 
exactly  the  reverse,  notably  those  who  were  interested  in  the 
Salonika  conflagration.  1  think  our  loss  ratio  of  4,?-72  per  cent, 
will  compare  favourably  with  that  of  the  majority  of  com- 
panies. In  our  accident  department,  vou  will  recollect  that 
shortly  after  war  broke  out  we  introduced  a  special  policy 
insuring  the   public    .against  death  or  accident.^  caused  by  air- 


5M 


tlbe  Jnveetote'  IReview. 


May  25,   1918. 


craft.  This  pulicy  has  been  very  much  appreciated  and  is  still 
being  so,  many  jKioplc  thinking  it  prudent  to  obtain  additional 
life  inniirance  and  accident  insurance  at  the  \ery  small  pre- 
mium they  have  to  pay  under  this  policy.  During  last  year  wc 
found  that  many  firms,  especi.iUy  in  ihe  City  of  London, 
whether  they  were  legally  liable  or  not,  were  seeking  to  gain 
protection  by  insurance  for  the  whole  of  their  staff.  We,  there- 
fore, originated  a  scheme  under  which,  by  payment  of  a  pre- 
mium on  the  total  salaries  paid,  the  whole  of  such  staffs  could 
be  insured.  This  has  been  very  much  appreciated  by  the 
public,  and  we  are  still  issuing  a  large  number  of  policies  in 
connection  with  the  scheme.  Another  new  form  of  policy, 
which  has  also  been  extensively  copied  by  our  rivals,  is  that 
lor  motor  vehicles  under  the  petrol  restrictions.  We  fixed  what 
we  considered  an  adequate,  but  much  reduced,  premium',  giving 
full  cover  and  accepting  the  risk  of  the^  restrictions  being  re- 
moved before  the  renewal  date  of  the  policy.  We  think  those 
people  who  have  had  the  advantage  of  our  reduced  .premium 
will  continue  their  business  with  us  when  we  return  to  normal 
times.  We  have  also  issued  a  special  policy  insuring  farm 
tractors,  which  has  had  a  most  favourable  reception.  In  con- 
nection with  employers'  liability  business,  there  is,  I  think,  one 
point  about  which  you  will  like  to  have  some  information.  As 
in  all  our  other  department.-! .  our  fixed  intention  is  to  deal 
quickly  and,  at  the  same  time,  fairly  with  claims.  We  are  still 
continuing  this  policy,  and  I  am  able  to  say  that  in  proportion 
to  the  business  the  number  of  the  claims  outstanding  is  few, 
and  none  of  these  is  of  a  serious  nature.  I  now  propose  to 
deal  with  the  life  department.  In  my  remarks  last  year  I 
dealt  with  our  amalgamation  with  the  Kagle  and  the  Sceptre, 
and  since  then  we  have  been  joined  by  the  well-known  Star 
Assurance  Society,  which  was  established  in  1843.  It  is  hardly 
necessary  for  me  to  enlarge  upon  the  importance  of  the  acquisi- 
tion of  this  company.  The  name  of  the  Star  has  become  a 
household  word,  and,  apart  from  the  value  of  their  life  con- 
nections, we  hope  to  use  them  in  our  other  departments,  where 
they  should  prove  of  extreme  value.  The  result  of  these 
ajnalgamations  and  of  the  active  pursuit  of  new  life  business  by 
our  representatives  during  the  year  is  shown  in  the  life  assur- 
ance revenue  account  and  'balance-sheet.  From  those  it  will  be 
seen  that  the  premium  income  during  the  year  exceeded  ;^9oo,ooo, 
tluvs  putting  the  company  among  the  first  half-dozen  British 
ordinary  life  offices  in  point  of  size  of  premium  income.  The 
actual  nett  ney  life  business  of  the  associated  companies  was 
as  follows  : — Number  of  policies  issued  exceeded  23,000,  sum 
assured  (nett)  exceeded  ^^5,000,000,  and  annual  premiums  over 
;f3oo,ooo.  I  think  that  that  is  a  specially  good  record  of  new 
business. 

The  amount  of  new  life  business  completed  by  the  company 
was  largely  owing  to  the  phenomenal  success  of  our  War  Loan 
scheme,  and  we  cannot  expect  to  equal  this  amount  of  new 
business  in  future  years  under  ordinary  conditions.  It  may 
safely  be  said  that  never  in  the  history  of  life  insurance  has 
there  been  such  an  advertising  campaign  as  that  with  which  we 
inaugurated  our  War  Loan  scheme.  Although  our  War  Loan 
campaign  was,  as  I  have  indicated,  by  far  the  most  outstand- 
ing feature  of  the  life  insurance  history  of  the  year,  we  did 
not  content  ourselves  with  this  particular  effort,  and  have  from 
time  to  time  since  we  commenced  to  transact  life  insurance 
business  introduced  other  attractive  new  plans,  especially  a 
scheme  for  insuring  the  lives  of  our  soWiers  and  sailors,  for 
which  Lord  French  and  Admiral  of  the  Fleet  Sir  William 
May  are  trustees.  Before  leaving  the  subject  of  Kfe  insurance 
I  should  like  to  point  out  that  your  directors  feel  very  strongly 
that  temperance  is  spreading  so  rapidly  in  the  country  that 
every  effort  should  be  made  to  give  that  section  of  the  public 
every  facility  for  life  insurance  on  the  best  and  most  up-to-date 
Imes.  It  was  largely  with  this  object  in  view  that  your  direc- 
tors made  the  arrangement  whereby  the  Sceptre  Life  Associa- 
tion, one  of  the  oldest  and  most "  successful  companies,  who 
especially  cater  for  this  class  of  business,  joined  their  future  to 
ours.  It  is  interesting  to  note  that  during  the  last  thirty-four 
years,  whereas  their  death  expectation  on  the  general  section 
amounted  to  78.69  per  cent.,  the  death  expectation  on  their 
temperance  section  amounted  to  only  50.2G  per  cent.  In  1917, 
excluding  war  claims,  the  death  expectation  on  their  general 
section  was  59.82  per  cent.,  and  in  the  temperance  section  was 
37-33  P«r  cent.  As  we  are  continuing  to  run  our  temperance 
section  on  exactly  similar  lines  and  treating  it  as  a  distinct 
class,  we  think  we  are  in  a  position,  if  not  to  offer  a  better 
policy  for  this  class  of  the  community,  at  least  to  offer  one  that 
IS  as  advantageous  as  any  other  company  can.  I  have  much 
pleasure  in  moving  that  the  accounts  and  report  be  adopted. 

Mr.  J.  Douglas  Watson,  F.I.A.,  F.A.S.  (deputy-chairman), 
seconded  the  resolution,  and  it  was  carried  unanimously. 

The  Chairman  moved:  "That  Uie  dividends  on  the  prefer- 
ence shares  paid  on  July  i,  1917,  .-md  January  i,  iqi8,  be,  and 
are  hereby,  confirmed." 

This  was  seconded   by  Mr.   Watson  and  unanimously  agreed 

The  Chairman  then  moved:  "That  a  final  dividend  of  71 
per  cent.,  free  of  income-tax.  he  paid  on  the  ordinary  shares, 
which,  with  the  interim  dividend  of  5  per  cent,  paid  on 
July  I,  1917,  makes  12}  per  cent.,  free  of  income-tax,  for  the 
year.  ' 

Mr.  Watson  seconded  the  resolution,  and  it  was  carried 
unanimously. 

The  Chairman  then  moved  "  That  a  final  payment  of  2  per 
cent,   be  made  on   the  preferred   ordinary   shares,  which,  with 


the  4  per  cent,  paid  on  July  1,  1917,  and  the  further  4  per 
cent,  paid  on  January  i,  igi8,  will  make  10  per  cent,  in  respect 
of  the  year   1917." 

Mr.  Watson  seconded  the  resolution,  which  was  carried 
unanimously. 

On  the  motion  of  Mr.  Horace  Peel,  seconded  'by  Mr.  Roger- 
son,  it  was  -unanimously  resolved:  "That  George  Wigley, 
Lsq.,  J.I'.,  and  Charles  Williams,  Esq.,  J. P.,  be  re-elected 
directors." 

On  the  motion  of  Mr.  H.  S.  Mountain,  seconded  by  Mr.  F. 
Ilitchin,  it  was  resolved  :  "  That  Messrs.  Edwin  Guthrie  and 
Co.  be  re-elected  auditors." 

A  vote  of  thanks  to  the  staff,  proposed  by  Mr.  Mackenzie, 
and  seconded  by  Mr.   Fowler,   wa.s  carried  with  acclamation. 

Mr.  S.  A.  Bennett,  the  assistant  general  manager,  suitably 
replied  on  behalf  of  the  staff. 

A  vote  of  thanks  to  the  chairman  and  board,  the  West-End 
board.  Star  and  Sceptre  boards,  and  local  boards  was  duly 
proposed,   seconded,  and  carried   unanimously. 

The  Chairman  having  acknowledged  the  compliment,  the 
proceedings  terminated. 


HARRISONS  AND  CROSFIELD. 

An  extraordinary  general  meeting  ol  Harrisons  and  (  ro.-,- 
field,  Ltd.,  was  held  on  Friday  in  the  Council  Room  o(  the 
Uubber  Growers'  Association  (Incorporated),  38,  Eastcheap, 
E.C.,  for  the  purpose  of  considering  and,  if  thought  fit,  passing 
a  resolution  empowering  the  directors  to  increase  the  capital 
of  the  company  to  ;£2, 5251,000,  to  consist  of  i,o<ki,ooo  preference 
shares  of  £1  each,  1,000,000  preferred  ordinary  shares  of  £t 
each,  500,000  deferred  shares  of  £1  each,  and  500,000  manage- 
ment shares  of  is,  each,  modifying  the  rights  of  the  latter  and 
readjusting  the  allcK;ation  of  the  profits.  Mr.  Chas.  Heath 
Clark  (the  chairman  of  the  company)   presided. 

The  Secretary  (Mr.  H.  P.  Church)  having  read  the  notice 
convening  the  meeting. 

The  Chairman,  in  the  course  of  moving  the  resolution,  which 
was  taken  as  read,  said :  Gentlemen,  the  great  expansion  of 
the  business  of  the  company  which  has  taken  place  since  its 
incorporation  ten  years  ago  is  the  main  reason  for  the  directors, 
after  months  of  the  most  careful  consideration.  asJting  your 
approval  of  the  scheme  which  has  been  placed  before  you  for 
the  rearrangement  of  the  financial  constitution  of  the  company. 
The  business  has  outgrown  the  original  arrangements  made 
upon  the  formation  of  the  company,  which  at  that  time  ap- 
peared entirely  suitable  to  our  requirements.  The  following 
comparative  figures  illustrate  the  development  which  has  taken 
place.  We  started  with  an  issued  capital  of  ,/^3o7,5oo,  which 
has  since  been  increased  to  ;£907,5oo.  The  total  book  value  oT 
the  assets  appearing  in  our  first  balance-sheet  amounted  to 
£^,64,436,  and  that  of  our  last  to  ;^2, 867,168.  The  profits 
earned  during  the  company's  first  year  amounted  to  ;f47,969, 
and  last  year  our  profit  reached  ;^i79,423.  The  ascertained 
profits  to  date  of  the  current  financial  year  exceed  last  year's 
total,  and  I  confidently  anticipate  it  will  be  a  record  year  for 
the  company.  The  surplus  assets  shown  in  the  balance-sheet  in 
1909  amounted  to  ;£45,59o,  and  in  1917  they  amounted  to 
^'452,840.  As  our  assets  appear  in  our  balance-sheet  "  at  cost 
or  under,"  such  surplus  does  not  include  the  very  large  appre- 
ciation in  the  value  of  our  investments,  if  taken  at  market 
prices,  or  the  very  large  goodwill  value  that  attaches  to  such  a 
business  as  that  owned  by  the  company.  During  the  past  ten 
years  we  have  ar.umulated  reserves  amounting  to  ;^346,ooo,  in 
addition  to  large  sums  written  off  for  depreciation,  so  that  our 
assets  are  all  in  an  extremely  sound  position.  In  the  same 
period  additional  branches  of  the  company's  business  have  been 
opened  by  us  in  Medan,  Batavia,  Bandoeng,  Quilon.  Calicut, 
r.nd  Kobe,  and  we  have  become  interested  in  the  business  car- 
ried on  by  companies  with  whom  we  are  alli^^d  in  the  United 
States  of  America,  Australia,  South  Africa,  the  Straits  Settle- 
ments, Borneo,  and  China.  I  think,  therefore,  you  will  agree 
that  the  development  of  the  company's  business  in  the  past  has 
been  so  extensive  as  to  justify,  and,  indeed,  necessitate,  very 
considerable  changes  in  our  capital  organisation.  In  the  pro- 
posals we  are  submitting  for  your  approval  we  have  endea- 
voured not  only  to  meet  the  present  needs,  but  al.so  to  provide 
for  the  considerable  further  expansion  of  the  company's  busi. 
ness  which  I  am  confident  will  take  place.  The  industries  in 
which  we  are  mainly  interested  are  hampered  and  restricted 
at  the  present  time  by  war  conditions,  but  when  peace  'omes 
there  must  be  a  great  expansion  in  all  production  as  the  one 
poseible  means  of  economic  recovery  from  the  havoc  and 
wastage  of  the  war.  This  company,  wr  believe,  will  have  the 
opportunity,  and  should  be  placed  in  a  positicm  to  take  a  con- 
siderable share  in  the  increased  commercial  and  industrial 
activity  which  must  then  ensue. 

The  Chairman  then  drew  attention  to  the  principal  points  of 
the  scheme,  including  the  raising  of  the  cumulative  dividend 
upon  the  preference  shares  from  5^  per  cent,  to  6  per  cent,  per 
annum ;  the  increase  of  the  preferential  cumulative  dividend 
upon  the  preferred  ordinary  shares  to  10  per  cent,  per  annum ; 
the  improvements  in  the  capital  rights  of  both  these  classes  of 
shares;  the  increase  of  the  authorised  capital;  the  transfer  of 
the  preference  reserve  fund  to  the  general  reserve  for  use  in 
the  business;  the  capitalisation  of  ^150,000  of  the  general  re- 
serve by  the  issue  of  fully-paid  deferred  ordinary  shares ;  and 


May  25,   1918. 


Zbc  Jnvestors'  IReview 


5«5 


the  provisions  for  the  creation  of  compulsory  further  reserves 
out  of  future  profits. 

In  conclusion,  he  said  :  The  scheme  we  have  placed  before 
you  has  been  most  carefully  considered  in  all  its  bearings  by 
the  directors,  who  have  exercised  the  utmost  care  to  ensure  that 
no  class  of  shareholder  shall  be  prejudiced  in  any  way  by  its 
operation.  The  directors  believe  the  scheme  as  a  whole  repre- 
sents a  distinct  improvement  in  the  rights  attaching  to  all 
shareholders,  and  therefore  they  confidently  recommend  its 
acceptance  as  being  in  the  best  interests  of  each  class  of  share- 
holder and  of  the  company  as  a  whole. 

Mr.   George  CroU  seconded  the  resolution. 

Mr  J.  B.  Braithwaite  said  he  was  sure  he  would  be  only 
voicing  the  opinion  of  the  shareholders  if  he  took  the  oppor- 
tunity of  congratulating  the  chairman  and  the  board  on  the 
extremely  solid  and  satisfactory  progress  made  by  the  company- 
As  his  firm  made  the  first  issue  of  capital,  he  thought  the  share- 
holders might  like  to  know  their  opinion  of  the  scheme.  It  was 
largely  due  to  the  suggestion  of  his  firm  in  the  first  instance 
that  the  preference  share  reserve  fund  was  established.  By  the 
courtesy  of  the  chairman  they  had  been  consulted  upon  the  pre- 
sent changes,  and  he  could  unhesitatingly  recommend  the  share- 
holders to  adopt  them.  The  scheme  thoroughly  safeguarded  the 
interests  of  the  existing  shareholders,  while  with  regard  to  the 
deferred  and  management  shares,  which  were  in  the  hands 
mostly  of  the  directors,  the  arrangements  made  were  thoroughly 
equitable. 

Mr.  J.  B.  Crosfield,  former  chairman  of  the  company,  also 
expressed  approval  of  the  scheme.  He  had  studied  it  carefully, 
and  it  appeared  to  him  to  be  a  particularly  excellent  scheme  in 
the  way  it  was  worked  out  as  regarded  not  only  all  classes  of 
shareholders,  but  as  regarded  the  advantages  to  the  company 
as  a  whole. 

The  resolution  was  carried   unanimously. 


CONSOLIDATED    MINES    SELECTION. 

The  twenty-second  ordinary  general  meeting  of  the  Consoli- 
dated Mines  Selection  Co.,  Ltd.,  was  held  on  Thursday  at 
Winchester  House,  Old  IJroad  Street,  E.C.,  Mr.  Walter 
McDermott  (chairman  of  the  company)  presiding. 

The  Secretary  (Mr.  C.  W.  Moore,  F.C.I.S.)  having  read  the 
notice  convening  the  meeting  and  the  report  of  the  auditors, 

The  Chairman  said  ;  On  the  credit  side,  properties,  quoted 
and  unquoted  securities,  aggregate  /.535,325,  not  including  in 
this  ;if  100,000  War  Bonds,  a  slight  excess  over  the  correspond- 
ing total  of  the  previous  year.  The  valuation  of  these  securi- 
ties is  on  the  same  basis  as  in  the  past — that  is,  they  are  taken 
at  cost  or  under,  and  the  total  figure  would  be  largely  increased 
if  they  were  valued  at  market  prices  on  December  31  or  at 
to-day's  prices.  The  cash  position  is  stronger  at  ^^290,809,  in- 
cluding War  Bonds.  A  strong  cash  position  is  necessary  in 
connection  with  liabilities  the  company  has  incurred  for  certain 
guarantees  of  loans  and  tor  subscriptions  for  working  capital 
of  subsidiary  and  new  companies.  The  profit  of  ^164,245 
compares  with  ^124,003  for  the  preceding  year,  and  the  in- 
crease is  due  to  a  number  of  successful  transactions  and  the 
realisation  of  profits  on  former  investments.  You  will,  how- 
ever, be  interested  to  hear  that  the  transactions  for  the  year 
leave  us  with  all  our  main  dividend-paying  investments  in- 
tact, and  with  new  business  in  hand  to  replace,  satisfactorily 
we  hope,  that  already  realised  on,  although  any  benefit  there- 
from will  probably  be  a  deferred  one.  The  profit  of  the  year, 
plus  the  carryover  from  1916,  gives  an  available  sum  of 
;^.'i73,46i,  and  of  this  it  is  proposed  to  transfer  ^^20,000  to  re- 
serve account,  making  this  then  stand  at  /8o,ooo,  and  to  pay  a 
dividend  ot  30  per  cent.,  less  income-tax.  With  these  proposals 
carried,  there  will  be  a  balance  of  profit  forward  of  ;f2g,i48, 
subject  to  extra  remuneration  to  directors  and  managing  direc- 
tors in  London  and  Johannesburg.  At  our  last  meeting  I  was 
able  to  mention  the  securing  of  the  Brakpan  deep  level  lease 
as  the  most  important  event,  and,  fortunately,  on  this  occa- 
sion the  directors  are  able  to  report  an  equally  important 
transaction  in  the  securing  of  an  additional  lease  for  the 
Springs  Mines,  Ltd.,  which  will  make  that  company  the  owner 
of  mining  rights  over  3,568  claims.  There  is  one  transaction, 
affecting  the  value  of  our  large  holding  in  Springs,  on  which 
I  will  say  a  few  words,  and  that  is  a  participation  which  the 
Springs  Mines,  Ltd.,  has  taken  in  the  West  Springs,  Ltd. — a 
new  company  formed  to  take  over  the  Western  Government 
lease.  As  part  consideration  for  the  working  facilities  granted. 
Springs  Mines,  Ltd.,  will  receive  an  option  to  call  for  150,000 
shares  of  the  new  company,  for  at  least  two  yep.rs,  at  22s.  6d. 
This  call  will  allow  of  a  distribution  of  one  option  certificate  to 
Springs  Mines  shareholders  for  every  ten  shares  held.  The 
Rrakpan  Mine  is  in  a  strong  position,  with  good  promise  for 
its  continued  successful  career.  The  ore  reserve  of  3,268,000 
tons — assaying  9.2  dwts.  over  67  ins.  of  stoping  width — has 
been  estimated  with  reference  to  present  higher  working  costs. 
For  the  year  under  review  the  grade  of  ore  milled  was  3s.  yd. 
and  costs  is.  per  ton  higher  than  in  1916,  so  that  the  result- 
ing profit  was  2S.  yd.  per  ton  better.  Dividends  amounting 
(o  47i  per  cent,  were  paid  for  the  year.  I  have  not  gone 
into  mining  details  as  fully  to-day  as  at  some  previous  annual 
meetings,  and  I  have  to  take  up  a  little  of  your  time  on  a 
question  of  domestic  policy  which  has  been  raised  by  a  circular 
you  have  probably  all  seen  about  enemy  holdings  in  our  com- 
pany.    I  can  show  you  that  the  premises  on  which  Mr.  Kennedy 


has  based  his  appeal  are  erroneous.  Mr.  Kennedy  is  grossly 
inaccurate  in  his  statement  that  180,000  shares  are  held  by  our 
managing  directors,  who  do  not  hold  one-tenth  of  that  number. 
.\s  regards  the  150,000  shares,  in  names  which  appear 
to  be  German,  though  their  owners  live  in  Great 
Britain,  the  secretary  informs  me,  including  those  of  the  manag- 
ing directors,  and  speaking  with  a  long  experience  of  German 
names,  that  there  are  not  over  73,000  shares  which  can  be 
said  to  be  in  such  names.  Mr.  Kennedy  is,  therefore,  inaccu- 
rate in  this  matter.  The  only  real  charge,  therefore,  which 
we  have  to  meet  is  the  existence  of  the  large  enemy  holdings, 
now  under  Government  control — "  the  very  head  and  front  of 
our  offending  hath  this  extent,  no  more."  I  am  able  to  say,  in 
the  language  of  Parliament,  that  this  matter  has  received  our 
serious  consideration,  and  long  before  Mr.  Kennedy's  exhorta- 
tion. More  than  one  attempt  has  been  made  in  this  direction 
by  asking  the  Public  Custodian  if  he  would  sell  the  shares, 
and  the  reply  was  in  the  negative.  We  had  also  received  the 
advice  of  our  solicitor  (in  answer  to  inquiries  made  of  us)  that 
there  were  not  sufficient  grounds  for  pursuing  the  matter.  If 
we  should  see  such  change  of  policy  on  the  part  of  the  Public 
Trustee  as  would  improve  the  prospect  of  getting  the  enemy 
holdings  of  shares  distributed  fro  rata  among  English  share- 
holders, you  may  be  sure  of  the  active  sympathy  of  the  board  in 
its   execution. 

Mr.  R.  J.  Frecheville  seconded  the  motion,  which  was  unani- 
mously adopted,  an  amendment  proposed  by  Mr.  Kennedy  on 
the  subject  of  shares  held  by  enemy  aliens  being  withdrawn 
after  some  discussion. 


KEPONG   (MALAY)    RUBBER. 

The  annual  general  meeting  of  the  Kepong  (Malay)  Rubber 
Estates,  Limited,  was  htld  on  Thursday  at  the  registered 
offices,  65,  Bishopsgate,  E.C.,  Sir  Gordon  Voules  (chairman  of 
the  company)  presiding. 

The  Secretary  (Mr.  W.  B.  Gauld)  having  read  the  notice 
convening  the  meeting  and  the  report  of  the  auditors. 

The  Chairman  said  :  You  will  see  our  profits  for  the  year, 
after  writing  off  ;^i,ooo  for  depreciations,  amounted  to  ;^'2i,85y, 
or  ;ii3,5oo  less  than  in  the  previous  year,  when  we  scored  a 
record  profit,  exceeding  our  total  share  capital.  If  we  add 
to  this  profit  of  /,'2i,859  the  sum  of  ^5,369  brought  forward 
from  the  previous  year  and  abate  the  excess  profits  duty  of 
A3>7°7  for  the  year  1916,  together  with  the  100  guineas  you 
voted  for  war  charities,  we  arrive  at  the  sum  of  jf  23,416.  Out 
of  this  we  have  already  paid  three  quarterly  dividends  of  15 
per  cent,  jpiece,  which  have  absorbed  ;^'i  1,250.  Thus  there 
remains  the  sum  of  ;/^i2,i66  for  you  to  deal  with  to-day. 
Your  directors  propose  that  this  should  be  dealt  with 
as  follows  : — Payment  of  a  final  dividend  of  15  per 
cent.,  which  will  absorb  £^,1^0,  and  a  transfer  of  ;fi,ooo  to 
our  reserve  account,  leaving  a  balance  of  £-],^ii>  to  be  carried 
forward.  With  regard  to  the  reduction  in  our  profits,  I  would 
explain  that,  though  we  sold  35,000  lbs.  more  rubber  than  in 
the  previous  year,  the  amount  realised  by  our  sales  was  ;C2,75o 
less.  This  is  chiefly  due  to  the  fact  that,  owing  to  the  shortage 
of  steamers  to  Europe,  as  well  as  to  America,  we  were  obliged 
to  sell  nearly  half  our  crop  at  Singapore.  This,  combined  with 
our  proposal  to  carry  forward  ^2,000  more  than  in  the  pre- 
vious year,  is  mainly  responsible  for  the  proposed  reduction 
of  our  dividend  to  60  per  cent,  for  the  year  instead  of  the  85 
per  cent,  we  paid  in  1916,  though  we  practically  earned  88  per 
cent.  The  real  stability  of  our  property  is  due  to  the  fact 
that,  with  a  modest  capital  of  ^25,000,  we  have  not  only  pur- 
chased our  estate,  but  have  already  expended  ;,f5o,ooo  on  its 
development.  This  represents  our  real  carry-forward.  In 
addition  to  this,  we  shall  have  paid  out  in  the  way  of  divi- 
dends ;ifi29,ooo.  You  will  see  we  harvested  335,586  lbs.  of 
rubber,  or  the  odd  5S6  ibs.  in  excess  of  the  estimate.  The  cost 
of  production  f.o.b.  at  Port  Swettenham  was  8.4d.  per  lb. — 
practically  the  same  as  in  the  previous  year.  All-in  costs 
were  well  under  is.  The  area  tapped  during  the  year  was 
769  acres,  out  of  which  188  acres  were  very  lightly  dealt  with. 
The  average  yield  was  436  lbs.  per  acre.  With  regard  now  to 
the  current  year,  I  should  like  to  offer  some  explanation  of  the 
limitation  of  our  output  to  270,000  lbs.,  or  80  per  cent,  of  the 
crop  for  1917,  instead  of  the  380,000  lbs.  estimated  by  our 
manager.  This  limitation,  as  you  are  aware,  has  been  made 
at  the  instigation  of  the  Rubber  Growers'  Association,  with  the 
view  of  supporting  the  Government  policy  of  releasing  as 
much  tonnage  as  possible  for  the  conveyance  of  troops  and 
food.  I  feel  sure  you  will  approve  of  our  having  fallen  into  line 
with  this  scheme,  originated  by  the  Rubber  Growers'  Associa- 
tion. We  believe  it  to  be  in  the  interests  not  only  of  Kepong, 
hut  of  the  rubber  industry  generally.  Something  like  80  per 
cent,  of  existing  rubber  companies  have  now  joined  up,  and 
it  is  to  be  regretted  that  any  companies  shoufd  remain  outside. 
This  is  an  account  of  our  stewardship  for  the  past  year.  I 
trust  you  will  consider  we  have  not  done  badly  under  very 
trying  conditions.  What  we  shall  be  able  to  accomplish  when 
peace  comes  round  again,  with  normal  shipping  facilities  and 
normal  freights,  no  war  insurance,  no  excess  profits  tax,  and 
an  increased  demand  for  our  rubber,  I  will  not  attempt  to 
prophesy.  But  in  making  your  own  calculations  as  to  our 
fu'ture  prospects,  do  not  forget  that  nearly  40  per  cent,  of  our 
nlanted  area  has  not  yet  been  touched  by  the  tapper's  knife. 
When  it  has,  we  imagine  that  the  result  will  be  startling. 

Mr.  T.  M,  C.  Steuart  seconded  the  motion,  which  was  unani- 
mously adopted. 


5i6 


Zbe  Jnvestots'  IRevtew, 


May  .?<;,   1918. 


INDIAN  RAILWAYS. 

oKoss  TRArnc  for  week. 

GROSS  TRAri IC  TO  DATE 

Skux. 

Week 

In 

or  dec. 

•/!                     In.  or  dec 

Amount 

on  last 

;       Amouol        on  last 

year. 

jS                              year. 

l<«. 

Ks. 

Kb. 

Ks. 

Assam  Bengal 
Barsl  ..        ..        .. 

Mar.    iC 

",67,634 

-t 

45.172 

34.31.084 

+    3.99.133 

,1       y 

10.200 

— 

6,400 

7,78,700 

—    2,28,700 

Bengal  &  N.W.     .. 

„      16 

4,96,930 

+ 

9,15s 

99,66,892 

—    3.54.501 

Bengal  Nagpiir 

.."      *3 

12,35,000 

+ 

55.000 

5,46,00,155 

+  48,43,907 

Bombay,  Baroda  .. 

May    II 

17,91,000 

+ 

i,04,aco 

1,05.82,000 

-1   ii,t6,ooo 

Burma 

Delhi  Umballa 

Mar.  16 
May    II 

],l8,l82 
87,000 

4- 

17,479 
3,309 

'  5!28;485 

-       76,306 

4-        70,723 

,t      fi 

26,83,000 

+  2,35.000 

1,47,94,000 

+    9,12,000 

Gt.  Indian  Penin.  .. 

,,      II 

21,98,100 

+ 

1,27,500 

1,35,24,200 

+    2,71,202 

Luclfnow-Bareilly, . 
Madras      and       S. 

Mar.   16 

70,646 

+ 

16,924 

12,96,717 

+     ",55.246 

Mahralta  .. 

,.      23 

11,15,000 

+ 

20,932 

2,62,61,870 

+  "5.38,93" 

Nlzam'sGd.(Broadi 

„      23 

1,43.  "2 

+ 

15,262 

34,20,293 

+     1.40,263 

RoLilkund  and 

.,      23 

75,022 

— 

3,986 

i 

21,21,775 

4-        23.572 

Knmaon  .. 

„      16 

53,206 

+ 

'4,463 

11,11,039 

+     ",94,482 

South  Indian 

„      23 

6,78,923 

+ 

14,995 

1,61,10,988 

*■    9.44.996 

MONTHLY    STATBMBtiTS. 


METT  RARMIMOS  FOR  MONTH.   NSTT  EARMINOS  TO  D«T1 


Dnblln  United 
Hastings  and  Dtst.. 
UleofThanet 
Lancashire  United.. 
Provincial    .. 
Yorks.  (Wat.  Rdng.) 


I  April  1.  1  October  i. 

TRAMWAY  AND  OMNIBUS.-HOME, 

f 


Apr. 
May 


5 

6 

,,       4 

,.     "5 

Apr.  17 

May  19 


( 

7,817 
1,160 
199 
2.760 
2,804 
3,007 


♦  From  Oct. 

TRAMWAY  AND  OMNIBUS. 

£ 

120,829 

54,104 

23,209 

M3, 925, 000 

35,530 

1129,658 

41,643 

Rs.27,614 

Rs.72,691 


".9"4 

58 

108 

574 

493 

1,104 


£ 

99,454 
"8,964 
5,659 
51,635 
73. "27 
48,863 


"9,433 
2,274 
2, "47 
"4,947 
"3,337 
11,358 


t  From  Jan.  i. 
FOREIGN  AND  COLONIAL. 


Alabama  Power  . . 
Anglo-Argentine  . . 
Auckland  Electric. . 
Brazilian  Traction  . 
Brisbane  Eleo.  Inv. 
British  Columbia  . . 
B.A.  Lacroze 
Burmah  Electric  . . 
Calcutta 
Carthagena  and 

Herrerias.. 
Cordoba  Light 

P.  &T 

Hongkong   , . 
La  Plata       .. 

Lima 

Madras  Electric   .. 

Manila  Electric... 

Mexico 

Rangoon 

Singaj.ore  Electric 

Toronto 

United  of  Monte  V. 

Vera  Cruz   . . 

Winnipeg    . . 


Mar.  S 
May  20 
Apr.  12 
Mar.  8 
.\pr. 
Mar.  S 
Apr. 
,>         ' 
May  18 


Ap        ( 

Feb. 

Mar.  16 
Apr.      I 

May  15  c 

Feb. 

Nov. 

Apr. 

Mar. 


.\pr. 
Feb. 
Mar. 


4,2CO 

12,972 

$'2,349 

3,"69 

20,392 

Rs.  42,003 

168,000 

•  215,256 

5.885 

•  14.054 

•53".725 

33.704 

42,200 

•66,661 


£ 

Ms. 

£ 

+      20,143 

I 

126,829 

+       ",450 

• 

1,107,440 

+       2.031 

a 

224,466 

—  M  226,000 

3 

MIII86COO 

+      3.910 

4 

"37,569 

+     •29,210 

9 

»i,032,557 

+      2,532 

10 

388,064 

+    Rs-3,9'5 

— 

213,042 

+    Rs.7,26o 

* 

Rsi300,599 

—            166 

* 

"7,558 

+         1,076 

II 

147,938 

+            228 

* 

•"53,745 

+            940 

4 

"9,972 

+         ",603 

4 

82,153 

+  Rs.  7,728 

Rs.362,727 

+       25,87c 

2 

335,000 

—  » 108,609 

* 

•3,193,106 

+            849 

» 

22,863 

+          $.60 

♦ 

•"33,346 

+     «56,ii9 

3 

#1,442,834 

+          4.474 

6 

206,037 

—         6,300 

2 

84,200 

-    »i6,98o 

3 

•216,856 

£ 

f  20,143 
+  78,045 
+       9,880 

—  M852,ooo 
+  9,789 
+  ^160, 244 
+  2,601 
+  R5.4,945 
+  R3.95,2S7 

3,032 

+  435 

—  »2,«05 
+  2,807 
+  "4,554 
4- Rs. 52,350 

46,570 

•  197,227 

2,363 

•206 

•55,2'i 

"9.415 

19,300 

•  33,817 


628  days.       •  From  Jan.  I.      5  Nett.       a  From  July  i. 
FOREIGN   RAILWAYS. 


c  Two  weeks. 


May 


Feb. 


AlooyandGandia.. 

Antotagasta    (Chili) 

Arauco 

ArKeniineN.E. 

Bilbao  R,  and  Canta 

Bolivar         ,, 

Brazil 

Brazil  Gt.  Southerni  Deo. 

B.  Ayres  &  Pacific  May 
Do.  Central  ..,  Apl. 
Do.  Gt.  South'n  May 
Do.       Western 

Central  Argentine. . 

C.  Ur'g'ayof  Mte  V. 

Do.  East'nEi. 

Do.  North'n  Ex. 

Do.  West'n  Ex. 
Cordoba  Central  . . 
Costa  Rica  . 
Cuban  Central 
Dorada  Extension . . 
Egyptian  Delta 
Entre  Rios  .. 
French  Sante  Fi  . . 
Gt.  South,  of  SpainI 
Gt.  West,  of  Brazil.  I 
Havana  Central    .. 
Inter.  otC.  Amer...{ 
La  Guaira  and  Car.; 
Leopoldioa . . 
Midland  Uruguay.. 
Mogyana 

N.W.  of  Uruguay . 
Nitrate 

Paraguay  Central . 
Paullsta 

Peruvian  Corpa    . 
.Salvador 

State  of  Bahia  S.W. 
K.  Paulo  (Brazilian) 
Sorocabana.. 

Taltal 

United  of  Havana.. 
West'n  of  Havana. . 
Zafra  and  Hiiniva. . 


Apl. 
May 
Apl. 

May 
Feb. 
-May 


Feb. 
Apl. 
.May 
.VI  ar. 
May 
Keb. 
Apl. 
May 


Mar. 


'  Montlis.  f  From  J.a.i. 


£ 

— 

+     11,590 

+      1,500 

+        300 

+          2,011 

+              962 

in 

1-M7l3,o64 

■t-    M22,7I2 

+       54.000 

+      10,302 

10 

+         32,COO 

+     37,000 

+    68,800 

+      7,430 

+         ".943 

+        1,400 

+           578 

+        7,440 

—       2,074 

+        1,966 

—          400 

+        2,686 

h          6,400 

+        53,260 

-Ps76,8a6 

+        2,700 

+         3,"77 

—        9.999 

—        2,500 

+         7,310 

-        1,800 

to 

+  M4"5,924 

-        t6.7 

10 

+        2,654 

+           700 

+  M994,536 

2 

+.  Si  .12,380 

10 

+  «.      '31 

I 

—  M  20, 000 

3 

+   .    5,095 

t 

-I-M272.3Q1 

2 

+        4,679 

10 

+        14,292 

t 

-t-        3.547 

1 

+        3,201 

2 

£ 
Ps.  189,900 
867,930 
39,000 

394,500 
15,083 

""3,775 
■  M  9,628,000 
M  538,439 
4,331,000  ;  + 

289,099  + 
5,045,705  !— 

2,440,000  |4- 
5,297,200  \  + 

850,689 1 + 

237,"24  i  + 

152,265  + 

102,541  1  + 

1,443,000 

114,894 

975,193 

33,400 

8,488 

740,600 

294,668 

Ps.  567,015 

352,400 

403,805 

77.876 

24.250 

629,776 

133.054 

:  M  3,948,:«o 

•260,697 

274,948 

130,190 

1  M  5,700,000 

)  S  10402,440 

97,153 

M  23  7,000 

607,270 

M  3,736,000 

249,960 

2,605,924 

424.056 

35^912 


£ 

—  Ps. 26,970 
+  "  14.035 
4-  6,000 
+   68,698 

+    2,919 

+    14,630 

+  M 1783563 

+  M74.769 

363,000 

46,182 

"30,549 

187,000 

559  "00 

242,771 

9.334 

37.84' 

18,967 

80.200 

—  96,608 
+   "69,53' 

—  2,700 
+  2,686 
+  183,000 
+  "08,973 
-Ps  268,628 

+  93,550 
+     85,946 

—  27,584 

—  10,750 
+  '76,057 
+      2,844 

+  M969,999 
4-  *I7,004 
+  '6,354 
+  ..  '5,790 
+  M 1807952 
+  S II 42548 

—  1,255 

—  M53,ooo 
4-  163,684 
4- M  472, 19  J 
+  61,702 
+  631,798 
+  "15, "64 
+ S>593 


1.    IFromJu.'yi,    c  Nett.    6  13  days,    a  10  days. 
COLONIAL  RAILWAYS. 


Beira 

Canadian  Northern 
Canadian  Paciho  . . 
Gi.  Trk.  Main  Line 
Gr.Trk.  Western.. 
Detroit  G.  H.&M. 
GrTkPac  Prairie  So 
MashoiialanJ 
Mid.  of  Westn.  Aus. 
New  Cape  Central. . 
Rhodesia 


£ 

Deo.  'c 

49,448 

May  14 

•857,300 

"    '4 

#3,109,000 

"    14 

2)8,877 

„     >4 

42,349 

„    "4 

13,069 

„     14 

•7,263 

Jan.     • 

52,822 

Mar.   • 

9,59t 

.  "     3' 

2.713 

Ian.  V 

76,395 

'  MoDtba. 


i 

—      1,841 

3 

-    «24.700 

—  •14,000 

t 

4-       25,022 

t 

+          1,496 

< 

-          936 

t 

—       9.395 

t 

—       3,3co 

4 

—       i,6i6 

9 

+           530 

f 

—       4,188 

4 

t  July  I.         f  Jan.  1. 


i 

173,777 

»36.342,300 

#51,941,000 

3,626,233 

663,863 

213,722 

451,085 

226,599 

70,728 

30,840 

343,800 

From  Oct.  1. 


Month, 


Amount, 


In,  or  Dee, 
CD  last  year 


Atchison  T.  &  S.  Vt 
Atlantic  Coast  Line 
Baltimore  &  Ohio  .. 
Canadian  Northern 
Canadian  Pacific  . . 
Chesapeake  &  Ohii 
Chicago  &  N.W.  .. 
Chicago  Burl.  &  Q. 
Chicago  G.W, 
Chicago  Mil.  &  S.P. 
Chicago,  Rook  I.&P. 
Colorado  ftSoutheru 

Cuba 

Delaware  &  Hud.  .. 
Denver  it  Rio  Gran. 

Brie 

Gr.Tr.  Main  Line.. 
Grand  Trunk  Westn 
DeiroitG.II.&Mil. 
Gt.  Northern 
Illinois  Central 
Kansas  City  Southn 
Lehigh  Valley       . . 
Louisville  ftNashvl 
Minn.  S.P.  (Soo)i  .. 
Miss.  K.  &  Texaa  . 
Missouri  Pacific    .. 
New  York  Cent.&H. 
N.Y.N.  Haven  &H. 
New  York Ont.SW. 
Norfolk  Sc  Western. 
Northern  Pacific  . . 
Pennsylvania    East 
and  West  Lines. . 
Phil,  and  Reading  .. 

Reading 

2>t.  Louis  St  San  F. 
Seaboard  Air  Line. 
Southern     . . 
Southern  Pacific   . 
Union  Pacific 
Wabatb       .. 


5    AiDouat.   I?,"  2Sl 


~i — 
+  6,532 
+•1314,400 
4  •2308,000 

4-        221,004 

7,110 

20,783 

98,087 

3,232 

2.3    ' 

3,349 
7.737 


Jan. 


Mar. 

Feb. 
Jan. 
Dec. 
Feb. 
Jan. 
Feb. 
Dec 
l'.b. 
Jan. 
Feb. 
Dec. 
Feb. 


Dec. 
Feb. 

Jan. 
Feb. 
Dec. 
Feb. 
Nov. 
Fob. 
Dec. 
Feb. 


Mar. 

Nov. 
Feb 
Dec. 

Feb. 
Jan. 

Feb. 


Dots. 

1,912,010 
1 ,073,000 
1,852,000 

2I0,4C0 

2,993,000 
627,000 

6783,000 

1,585,000 
151,000 

b  628,000 
271,000 

451,796 

3.600 

341,000 

507,000 

b  241,700 

b  f40,i30 

6£i3,ioo 

1,165,000 

l,CO8,0OO 

455,000 

6985,000 

1,462,000 

6126,000 

76,000 

1,690,000 

705,000 

207,000 

21,000 

342,000 
862,000 

2,317,000 
6  4i6,mo 

13',34l 
1,243,000 

673,000 
1,772,000 


6  166,000 


Doll. 

-1,689,900 

212,000 

—  1,165,000 

—  407,700 

—  944,000 

—  160.000 
.2,797,000 
■2,276,000 

_       36,000 

—  2,291,000 

—  348,000 

—  11,000 

(-  418.S65 

—  720,000 

—  12,000 

4  1,848,000 

—£291,400 
f27,ooo 

—  £3.900 

1,401,000 

—  238,000  j 

4-  59,00c  I 
—1,346,000  i 

—  23,000 

—  883,000 

—  112,000 
+     321,000 

—  243,000 

-',795,'"  00 

—  60,000 

—  833,000 

—  694.000 

—3,663,000 
—1,939,000 
f   40,038 

—  344,000 

—  206,000 

4-  412,000 

—  336,000 
4-        72,000 

—  8,000 


12 


Dots 

47,839,000 

12,014,000 
30,589,000 
2,490.100 
4,752,000 
346,000 
27,015,000 

12  32,867,000 
3   I  143,000 

13  31,967,000 
3  ;        3}l,ooo 

11  ;      3  '30,000 

8  {  3,^42,241 
13       3,686,000 

3  756,000 

12  j    10,538,000 

2  . 6  £409.700 

2  !       i79,30o 

3  I        £28,100 

13  j  33,987,000 
3  I  331,000 
3    I          824,000 

13   i      9,403,000 

2  I      3,084,000 

'2       9,33«,ooo 

3  t  201,000 

5  ;  9.423,000 

2  t6      443.000 

13  33,813,000 

2  14,000 

2  763,000 

3  I      1,644,000 

3  1610,018,000 

11  14,877,000 

2  j    249,000 

6  0,370,000 

12  8,628,000 
8  ,   17,716,000 

12  I  59,783,000 
12       42,942,000 

3  6     483,000 


Dols. 

—  1,248,000 
4-      607,00c 

—  3,425,000 
5.014,40c 
3.603,000 
1,394,000 

—  3.634,000 

—  6,232,000 
357.000 

—  9,360,000 

—  1,636,000 
+  370,000 
+      817,795 

—  2,124,000 

—  394,000 

—  3,277,000 

—  £601,330 

—  £61,500 

—  £0.750 

—  6,179,000 
4-  3,372,000 

—  10,000 

—  3,876,000 

—  1,389,000 

—  3,648,000 

—  392,000 
4.  1,920,009 
4-  5.019,000 

—  3,343,000 
183,000 

3,300,000 

—  3,139,000 

—620869000 

—  6,626,000 
4-  80,230 
4-     632,000 

—  34,000 
4-  1,667,000 
4-  7,953,000 

—  3,115,000 

—  1,784,000 


§  Includes  Wisconsin  Central.    ♦  Gross  eartungs.    i  Surplus.   6  Dofiolt. 


Notes  on  Books. 

on  and  Pclroleum  Manual,  1918.  Walter  R.  Skinner,  11-12, 
Clements  Lane,  E.C.  Price  4s.  nett. 
This  useful  handbook  has  now  reached  its  ninth  year  of  issue, 
and  it  is  recognised  as  the  standard  work  of  referenre  on  the 
oil  and  petroleum  industry.  The  publisher  has  been  reluctantly 
compelled  to  raise  the  price  from  2s.  6d.  to  4s.,  owing  to  the 
increased  cost  of  paper  and  printing,  but  those  who  have  to 
consult  it  often  will  not  grudge  the  increase.  In  the  case  of 
many  companies,  especially  those  operating  in  Russia  and 
Rumania,  reliable  information  is  extremely  difficult  to  obtain, 
but  wherever  possible  the  usual  full  and  accurate  det.nls  are 
brought  up  to  date  in  the  present  volume,  which  deals  with  500 
undertakings,  covering  an  extremely  wide  field.  Special  atten- 
tion  has  been  devoted  to  companies  operating  in  America  and 
abroad  which  have  a  more  or  less  direct  bearing  on  the  Rntish 
branch  of  the  indu.stry.  The  book  also  contains  a  complete  list 
of  directors,  secretaries,  and  consulting  engineers,  managers, 
agents,  &c.,  and  there  are  useful  statistical  tables  of  production, 
so  that  the  inform:\tion  supplied  is  as  comprehensive  as  could  be 
desired. 


BOOKS    RECEIVED. 


Decimal  Money  Table.  By  .\.  M.  Pooley,  M.A.  2s.  6d.  nett. 
Published  by  the  Syren  and  Shipping,  Ltd.,  91-93,  Leadenhall 
Street,  London,  E.C.   3.  . 

The  Canada  Year-Book,  191617.  Census  and  Statistics  Office, 
(Mtawa. 

Further  consignments  of  food  have  been  recently  shipped 
to  Britain  from  Durban  under  the  Food  for  Britain  scheme.  A 
consignment  of  626  quarters  of  beef  and  50  cases  of  butter  have 
just  been  despatched,  and  they  will  be  followed  by  470  quarters 
of  beef  and  100  cases  of  butter.  A  letter  has  been  recently  re- 
ceived from  Cathcart.  Cape,  intimating  that  it  desired  to  start 
a  similar  movement  there. 

There  are  now  only  5,700,000  pigs  in  Germany,  as  against 
13,000,000  a  year  ago.  No  wonder  German  "fat  bellies"  are 
a' thing  of  the  past.  Hut  the  former  "fat  ones"  need  not  lose 
.nil  hope.  Their  armed  slave-drivers  have  requisitioned  100,000 
beeves  and  ^0,000  pigs  from  occupied  Poland,  or  one-fifth  of 
all  the  live'  stock  left  in  the  country  alter  previous  thefts. 
And   Germany  is  astonished   that  it  is  not  loved. 

South  Afric-in  Marble  Quarries.— There  is  the  makiiig  of  a 
very  promising  industry  in  the  marble  quarries  at  Karibib,  in 
the'  South-West  Protectorate.  Some  very  beautiful  coloured 
marbles  are  being  quarried  there.  They  are  beautifully  grained 
and  take  a  high  degree  of  polish.  For  indoor  purposes  and  for 
ornamental  work  these  coloured  marbles  from  the  Protectorate 
would  be  excellent,  ana  iT  is  not  surprising  that  a  strong  de- 
mand for  them  has  arisen. 


Printed  by  the  St.  Cleh(NTs  Psfss,  Ltd.,  Portugal  Street,  Kingsway,  London,  W.C,  for  the  Proprietor  of  Tb»  Investors'  Rkviiw,  and  Published 
by  Tub  Proprictor.  Norfolk  Houte,  Norfolk  Strsst,  Strand   W.C.  3.— May  aj,  1918.  1"  2376 


xn^e 


Jnveetote'  IRevfew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1S92. 


N.XLI.— No.  1,065.] 

NEW  SERIES. 


rRegistered  as  al 
L    Newspaper.    J 


SATURDAY,  JUNE  i,  1918. 


[Price  6d. 


CONTENTS. 


eading   Articles : — Wanted,  a   Larger   Revenue  —  Government 
Wants  and    Our    Duty  —  The  World's    Cereal    Position  — 
By-the-Way  War    Notes—  Our    Disabled    Men  I'pp.  519-20 
and  524-7). 
ssing    Events :  — National    War    Bond    Sales   — ■    Revenue   — 
Nation's    Rights  to  Intestate   Estates  —  Russian    Affairs  — 
Committee     on      Electric      Supply    —     Food      Production 
Statement   —    Liquor     Importation    into    Russia   —    Royal 
Mail    Steam    Packet  —  Leopoldina    Railway  —  Rhodesian 
Railway   Administration   —    Schweppes   —   R.    White   and 
Sons  —  Broken    Hill    Proprietary  —   Modderfontein    Deep 
and  Geduld  (pp.  521-4). 
Insurance     News :  —  Guardian     —     Law       Guarantee       Trust 
Liquidation   —    Scottish    Widows'    War    Policy  —    General 
Life  —  City  Equitable  —  Phoenix  (pp.  526-7). 
Money  and  Credit  Notes; — Liverpool,  French,  and    Italian  Bill 
Issues  —  Bank    Return  —  Bankers  and    the    Exchequer  — 
Extending  Bank  Agencies  Abroad  —  Exchange  Fluctuations 
—  Commonwealth  Debt  —  Eighth  Austrian  Loan  —  Silver 
(pp.  529-31). 
nerican      Business      Notes  : — •  Advancing     Railway     Rates  — 
Delaware     and      Hudson     —     International      Harvester   — 
Anaconda  Co.  —  Utah  Copper —  Shipping  Output  (p.  533). 
Company  Results  in  Brief  (p.  527). 
The  Week's  Stock  Markets  (pp.  531-2). 
London  Produce  Markets  (po.  532-3). 
The  Week  in  Mines  (p    534). 


Mining  News ; —  West  African  Gold  Output  —  Rhodesian 
Mineral  Output  —  Rhodesia  Copper  and  General 
Exploration  —  Lothian  Coal  —  Broken  Hill  Proprietary 
Block  Ten  —  Broken  Hill  Block  14  Co.  —  Hutti  (Nizam's) 

—  Edinburgh  Collieries  —  Mount  Boppy  —  Durban- 
Roodepoort  Gold  —  Lahat  Tin  —  Scottish  Australian 
Mining  (p.  534). 

Tea,  Oil,  and  Rubber; — Rubber  Market  —  Rubber  Results  in 
Brief  —  Linggi  Plantations  —  London  Asiatic  Rubber  and 
Produce  Co.  —  Rubber  Estates  of  Johore  —  Bila 
(Sumatra)  Rubber  Lands  —  Lnngen  (Java)  Rubber  Estates 
Co.  —  Sapumalkande  Rubber  Co.  —  New  Crocodile  River 
(Selangor)  Rubber  Co.  —  Damansara  (Selangor)  Rubber 
Co.   (pp.  534-6). 

What  Balance  Sheets  Tell  ;— De  Trey  and  Co.  —  H.  H.  and  S. 
Budgett  and  Co.  —  Otis  Steel  Co.  (Cleveland,  Ohio)  — - 
London  and  Suburban  Traction  Co.  —  City  ol  Dublin  Steam 
Packet  Co.  —  Army  and  Navy  Auxilary  Co-operative  Supply 

—  British  and  African  Steam  Navigation  Co.   (p.  536). 
Company     Meetings:  —  Metropolitan     Carriage,     Wagon, 

Finance   Co.  —  Alliance    Assurance  Co.  —  R.    White 
Sons  (pp.  537-8). 

Public  Income  and  Expenditure  (p.  536). 

Dividends  Announced  (p.  538). 

Traffic  Returns  (p.  539). 

Answers  to  Coi respondents  (p.  539). 

Oilfields  Production  (p.  539). 


and 
and 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office:  15,  Gracechurch  Street,  London,  E.C.  3. 


I 

I^ 

The 

i 


Capital  Authorised  

Capital  Issued      

Capital  Paid  Up 

Reserve  Fund  (Undivided  Profits) 


£1,500,000 

1,125,000 

562,500 

708,432 


Branches  I 

INDIA,   BURMAH,   CEYLON,    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS,    MAURITIUS. 

The  Bank  buys   and  sells   Bills  of  Exchange,   issues  Letters   of  Credit  and 
".ircular  Notes,  and  transects  banking  and  agency  business   in  connection  with 
the  East,  on  terms  to  be  had  on  application. 
POSITS  received  for  one  year  at  5  per  cent,  per  annum.     Rates  for  other 

periods  on  application. 
n  ouppant  aocounta  interest  is  allowed  at  3  per  cent,  per  annum  on 
daily  balances. 


ROYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  17J7. 
PAID-UP  CAPITAL £S,000,000 

»RBST  AND  UNDIYIDBD   PROFITS  914  9S8 

DEPOSITS 26,177,865 
Head    Office:    ST.   ANDREW   SQUARE,  EDINBURGH, 
(hier  and  General  Manager,  A.  K.  Wright.         Secretary,  J.  B.  Adshead 
London    Offlce:    3,    BISHOPSGATE,  E.C.  2. 
ILLUU  Wallace,  Manager.                               Alex.  Dick,  Deputy-Manager 
Glasgow  Offlce:     EXCHANGE  SQUARE. 
Dennistoi'n,  Agent.                                            Thomas  Lillie,  Sub-Agent. 
167  Branches  throu^out  Scotland. 
I        tianking  Business  of  every  description  transacted.  Accounts  0[>ened  and  Agency 
J        business  undertal<en  for  Toreign  dud  Colonial  Banks  and  oth^  r  financial  estab- 
,        lishments.     Drafts,  Circular  Notes,  and  Letters  of  Credit  issued  — available 
I        throughout  the  world.      Cable  transfers  are  also  made.     Deposits  received  at 
1                      interest  repayable  at  oall  or  at  notice.    Correspondence  invited. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated  by   the   Special   Charter  of   the   Imperial 
lapanese  Government.   7899. 

TAIPEH,    FORMOSA. 


HEAD   OFFICE      - 


Amoy,  Batavia,  Bombay,  Cant'  n  Foochow,  Hankow,  Hongkongi 
Kiiikiang,  Kobe,  New  Yoik,  Osaka,  Shanghai,  Singapore,  Swaiow, 
Soerabaya,  Tokyo,  and  every  important  city  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST..  E.C.  2. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1880. 

Subscribed  Capital        Yen  4S,OOn,000 

Capital  Paid  Up Yen  42,000,000 

Reserve  Fund         ..        ..  ..    Yen  23,000,000 

Head  Office   YOKOHAMA. 

Branches  and  Agencies  at 
Bombay.  Honolulu.  Newchwang.  Shimonoseki. 

Buenos  Ayres.  Hong  Kong.  New  York.  Singapore. 

Calcutta.  Kobe.  Osaka.  Sourabaya. 

Changchun.  Los  Angeles.  Peking.  Sydney. 

Dairen  (Dalnyl.  Lyons.  Rang  on.  Tientsin. 

Fengtien  (Mukden).       Manila  San  Francisco.  Tokyo. 

Hankow.  Nagasaki.  Seattle.  Tsinanfu. 

Harbin.  Shanghai.  Tsingtau. 

The  Bank  buys  and  receives  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  transacts  General  Banking  Business. 

Deposits  received  for  fiied  periods  at  rales  to  be  obtained  on  application. 
London  Olfice  :   7,  BISHOPSGATE.  E.C.  2. 

K   TATSI;mI,  Manager. 


HONGKONG   AND    SHANGHAI    BANKING    CORPORATION. 

Capital  (all  paid  up) $11000  000 

Sterling  Reserve,  held  in  London  at  exchange  of  81.  per  t  -  £1,500,000                     ..        ..    $19,000,000         '      ' 
BllYer  Reserve $19,900,000    $34,(00,000 

Reserve  Liability  of  Proprietors $19,000,000 

HEAD    OFFICE-HONQKONQ.    Chief  Manager-N.   J.    STABB. 
h^ii:^^^^v„\,^^S,^^^?^l^'^\^^T  ~  ■'''"°-;  Bangkok,  Batavia,  Bombay,  Calcutta,  Canton,  Colombo,  Fioohow,  Hankow,  Harbin,   Hongkew    {Shanghai 
_li,  Johore,   Kobe  (Hiogo)     Kuala   Lumpur,    London    Lyons.    Malacca,   Manila,  Nagasaki,  New   Yurk,   Peking,    Penang.  Rangoon,  Saiaon   San   Francisc. 
ilnghai,  Singapore,  Sourabaya,  Tientsin,  Tsingtao,  Yloilo,  Yokohama.  .        •  .  .  s.      <=«io"s,  njBjgowii,  aaigon,  nui   rranciscv 

k HENRY  KESWICK,  Esq.,  M.P.  |  WM.  GAIR  RATHBONB,  Esq,       ^'T^^^  '  J.  R.  M.  SMITH,  Esq.  |  A    M.  TOWNSEND,  Esq. 

C^.<^..o.  S«^.  I,.po«,  E.C.  ,,  ^'^d'^^^'^nV'"''  }  '^-^•"  '"  ^-0-'  W."vi  ^t%VlBX'>!:^^r'"' 


Zbc  Jnvestors'  IRevtew. 


June  i,  191S. 


LONDON  COUNTY  WESTMINSTER  &  PARR'S  BANK,  Ltd. 


ESTABLISHED    IN    1836. 


AUTHORISED  CAPITAL  £30,000,000,  in  1,500,000  Shares  of  £20  each. 

Reserve  -        -        -        £6,800,000. 

Chairman:  WALTER  LEAF.Esq.    Deputy  Chairmen:  Sir  MONTAGU  TURNER,  R.  HUGH  TENNANT.  Esq. 


HEAD    OFFICE  :     41,    LOTHBURY,    E.G.  2. 

Joint  General  Managers:     F.  J.   BARTHORPE,    J.  W.  BUCKHURST.    J.  C.   ROBERTSON. 

Foreign  Branch  Office :    82,  Cornhill,  E.G.  3. 

The  Hank  is  ref  resented  by  Branches  or  Agents  in  all  the  princit-al  cities  and  towns  of  the  United  Kinf;dom  and  has  Correspondeuts  throughout  thi  World. 

Spanish  Branches  :— Barcelona :  Paseo  de  Gracia  8  &  10.    Madrid  :    Calle  de  Alcala  43. 

Affiliated  in  France  ;    London  County  and  Westminster  Bank  (Paris)  Limited. 
Paris  :  22,  Place  Vendome.       Bordeaux  :    22  &  2+,  Gours  de  I'lntendance. 

Affiliated  in  Ireland :    Ulster  Bank  Limited. 

All  Cheques  on  the  Ulster  Bank  will  be  collected  for  Customers  of  this  Bank,  free  of  Commission. 

EXECUTOR  AND  TRUSTEE  DUTIES  UNDERTAKEN. 


ENGLISH,    SCOTTiSH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

Hend  OfHoe— 38,  Zjombskvd  StveeAi  ES.C  S. 

Subscribed  Capital £i,o;8,87j    o    o 

Paid-up  Capital S39i437  lo    o 

Further  Liability  of  Proprietors     ..        ..  539i437  lo    o 

Reserve  Fund joo.ooo    o    o 

LETTERS  OF  CREDIT  and  DRAFTS  on  the  Branches  and  Agencies  of 
the  Bank  in  Australia  can  be  obtained  at  the  Head  Office,  or  through  the  Ageoti 
of  the  Bank,  in  the  chief  Provincial  towns  throughout  the  United  Kingdom. 
REMITTANCES  made  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOTIATED  or  forwarded  for  COLLECTION. 
BANKING  and  EXCHANGE  Basinaes  of  every  description  transaoied  with 
Australia. 

£.  M.  lANION,  Manacer. 


THE  BANK  OF  ADELAIDE. 

(Incorporated  by  Act  of  Parliament,  i86;,) 
AuthoriMd  Capital         •    £1.000,000.  Sulnorlbeil  Capital    •    -    £825,000 

Paid-up  Capital        £500.000 

Reserve  Fund  555,000 

;fl,055,000 

Uncalled  Capital ■       125,000 

Reserve  Liability  of  Proprietors        625,000 

;Ci,ac5,ooo 

London  Office — tl,  Leadenhall  Street,  E.C.  3. 

BILLS  on  Australasia  purchased  or  collecied. 

DRAFTS  issued  «nd  REMITTANCES  cabled. 

DEPOSITS  received  for  fixed  periods  at  r^tes  to  be  ascertained  on  application. 

PERCY  ARNOLD.  .Manaeer. 

THE  LONDON  BANK  OF  AUSTRALIA,  LIMITED. 


Head  Office— 7T,  Old  Broad  Street,  E.C. 


10 

o 
1 

10 


Subscribed  Capital         £1,276.747 

Paid  up  Capital 669,685 

Reserve  Fund  and  Undivided  Profits         ..  409.626 

Reserve  Liability  of  Proprietors       ..         ..  606,962 

REMITTANCES  made  by  CABLE. 

DRAFTS,  LETTERS  OF  CREDIT  and  CIRCULAR  NOTES  issued  upon 
Branches  and  Agents. 

BILLS  on  Australasia  NEGOTIATED  or  sent  for  collection. 

DEPOSITS  RECEIVED  for  periods  and  at  rates  which  may  be  ascertainwl 
on  application,  and  Banking  business  of  every  desonpticn  conduoted 
wilfa  Australia. 

The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorpokatkd  1880. 

Authorised  and  Issued  Capital,  ,£'6,000,000. 

Paid-up  Capital,  fa, 000,000;  Reserve  Fund,  £2,000,000 ;  togethec    £4»ooo.ooo 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves f  8,000,000 

HEADOPFICe-         -         -        71.  CORNHILL,  LONDON,    E.G.  3, 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  th«  Australi:  n 
States  and  Domini-in  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection- 

DEPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
CD  application. 

THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 
Pkld-up  Capital    ..    £2Sa,000    0    0     25,000  Shares  of  £10  each. 
Reserve  Fund  . .    . .  £700,000    0    0  |  Reierva  Proflti    . .  £19,339 

Reserved  Liabllltv  of  Shareholders  £230.000. 

Drafts  issued    Kemitt.^nces  cabled.  Bills  negotiated  or  collected.     Deposits 

received  tor  iint'd  puritdi  at  rates  to  oe  ascertained  on  application,  and  all 

banitinf;  and  exchange  business  connected  with  \\  esiern  Australia  conducted 

through  the  London  Agents.  The  Bank  of  Adelaide,  II,  Leadenhall  Sb,  E.CS. 


BANK  OF  NEW  SOUTH  WALES 

F.ilaUi'.hli  IS!7. 

Paid  up  Capital £3,904,860 

2,876,000 


Reserve  Fund 
Reserve    Liability 
Proprietors     ... 


3,904,860 

Head  Omca :  SYDNEY,  HEW  SOUTH  WALES. 
London  Directors : 

Sir  Frederick  Green,  Chairman. 
H.  L.  M.  Trittoh,  Esq.  Walter  S.  U.  Bl'kns,  Esq. 

David  George,  Manager.  J.  S.  Caupbell,  Stcretary. 

Halkbrstonk  Mbldruw,  David  GEDDiCt 

Assiitant  Manager.  AccourUant. 

The  Bank  has  331  Branches  and  Xjenoies  in  the  Australian  Slates, 
New  Zealand,  Fiji,  Papua  (N<»w  Guinea),  and  London,  and  Agents  and 
Correspondents  all  over  tlie  World,  on  whom  the  London  Office  grams 
Circular  Letters  of  Credit  and  Circular  Notes..  Also  issues  Drafts  on 
demand.  Maites  Mail  and  Cable  Transfers.  Negotiates  and  Collects 
Bills  of  Exchange.  Receives  Deposits  tor  Fixed  Periods  on  terms 
which  may  be  icnown  on  application,  and  transacts  every  description  of 
Australian  Banking  business. 

London  Offloa:  89,  THRBADNEEDIiB  STREBT,  B.C.  S. 


THE  LOKDON  &  RiVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital  £4,000.000 

Paid-up  Capital 1,800,000 

Reserve  Fund    2,000.000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendora,  Concordia,  Bahia 
Blanca,  Corddba.  Tucumiin,  I^arani,  Barracas  (Buenos  Aires),  Once 
(Buenos  Airesi,  Boca  (Buenos  Aires),  Calle  Santa  F^  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires)  URUGUAY.— .Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agenc),  Salto 
(Agency).  BRAZIL  —  Rio  de  Janeiro.  Sao  Paulo,  Santos,  Per- 
nambuco.  Para,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  Haftvy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiaMd, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


BANK    OF    NEW    ZEALAND. 

{Incorporated  July  2gth,  iS6l.) 
BANKERS  TO  THE  NEW  ZEALAND  OOVERNHENT, 
London  Office:  i,  Queen  Victoria  Street,  London,  E.C. 4. 

AUTHORISED  CAPITAL        £5,500,000 

SUBSCRIBED  CAPITAL. 

Four  per  Cent.  Guaranteed  Stock         ..     * £S'9i933 

"A"   Preference  Shares  issued  to  New  Zealand  Governmeot  500.000 

B"  Preference  Shares  issued  to  New  Zealand  Government  350,000 

Ordinary  Shares 1.500.000 

Reserve  Fund  and  Undivided  Profits    . .  .£2,246,595 

Negotiates  and  collects  Bills  of  Exchange. 

Grants  drafts  on  its  Offices  in  New  Zealand,  Australia,  Fi}!  and  Samoa     R«- 
miitancesniade  by  telegraphic  transfer. 

ALEXANDER  KAV,  Ma 


Zhc  Snveetore*  IRcpiew. 


Vol.  XLI.— No.  1,065 


New  Series. 


SATURDAY,  JUNE  1     1918. 


("N^XSpeV")  Price  6d. 


PUBLISHER'S    NOTICES 

UbC  investors'  IRCVieW  is  a  subscription  Joumal.  and  will 
be  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning 
on  the  following  terms: — 
One  Year,  £1  5s.  Od.    Six  Months.  12s.  6d.    Three  Months,  6s.  6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year  £1  8s.  Od.    Six  Months,  14s.  Od.    Three  Months,  7s.  Od 

Short  of  Three  months  the  Price  is  6Jd.  per  Copy  Inland,  and 

7d.  Abroad,  Post  Free. 

Cloth  cases  for  binding  tlie  half  Yearly  Volumes  price  2s.  6d., 

postage  6d.  extra.     Boniid  Volumes  17s.  6d.,  or  18s.  6d.  post  free. 

Cheques  and  P  O.  Drafts  should  be  made  payable  to 

"Investors'  Keview," 

Norfolk  House,  Norfolk  Street, 
London,  W.C. 

Telephone  No. :  Telegraphic    Address  : 

Gerrard  9132.  "  Unveiling.  London." 

The  Editor  cannot  undertake  to  return  rejected  com- 
munications. 

Letters  from  correspondents  must,  In  every  case  be 
mathentlcated  by  the  name  and  address  of  the  writer. 

The  Editor  desires  It  to  be  understood  that  a  charge  is 
made  for  the  Insertion  of  reports  under  the  heading  of 
Company  Meetings,  and  he  cannot  accept  responsibility 
for  statements  made  therein. 


ANSWERS  TO  QUERIES. 

One    Reply    to    One    Question  —  One    Shilling.      Any 

number  of  quest'ons  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  kept,  as  securitie;  cannot  be  named  with  comments  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issue 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  in  advance,  9 
Key  to  the  previous  week's  replies  will  be  sent  early  in  tht 
following  week. 

Deposits  of  "  Query  Money  "  may  be  made  in  advance,  and  wil( 
be  acknowledged  in  the  "Answers"  column.  Notice  o( 
exhaustion  will  also  be  given  there. 

Telegrams  advising  about  new  securities  cost  Half-a- 
Crown  eacli,  plus  cost  of  the  telegram. 

Private  letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
Shillings,  but  for  this  three  questions  will  be  answered  if 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Half-a-Crown  per  question. 

Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  on  terms  varying  according  to  the  tin»« 
taken , 

Groups  o^  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


I 


Wanted,  a  Larger  Revenue. 

,\ii  inipressi\e  suminary  of  what  America's  help  ha.s 
meant  to  the  Allies  of  the  Enlenle  in  this  war  was 
given  by  M.  Tardieu,  the  French  High  Commissioner 
in  the  United  Stales,  and  a  dislinguished  Frenchman. 
He  began  by  [)ointing  out  that  the  .\merican  Army 
will  amoinil  to  2,ooo,ooo()r  men  before  this  monlh  is  a 
week  old,  ;ind  that  another  1,000,000  will  follow  imme- 
diately. "  The  capacity  of  transport  for  troops  from 
.\merica  to  France  surpasses  considerably  that  of  the 
transport  of  German  troops  from  the  Russian  front 
to  the  F"rench  at  the  most  active  period  of  the  trans- 
fer." I'hus  the  Allies  are  guaranteed  a  superiority  of 
numbers  for  the  final  ph.isc  of  the  war,  and  ha\e  be- 
hind thein  America's  inexhaustible  man-power. 
Almost  as  impressixe  in  .-mother  aspect  is  .America's 
monetary  sacrifices.  The  total  loans  have  risen  to 
;£,'2, 520,000,000,  and  expenditure  has  been  voted  by  Con- 
gress amounting  to  ;£,'7,()8o,ooo,ooo.  Loans  to  the 
Allies  already  exceed  ;£.'i,2oo,ooo,coo,  and  while  sup- 
plying Fnrope  with  men  :ind  money  unstinted  in  num- 
bers and  amount  in  order  to  put  down  the  Prussian 
horror,  the  peojjle  of  the  Ignited  States  have  not  neg- 
lected the  other  aids.  The  exportable  surplus  of  food 
has  amounted  to  3,120,000  tons,  and  the  liroduction  of 
essential  inatcrials  is  being'  each  day  more  and  more 
strongly  organised.  To  I'Vance  alone  America's  ex- 
ports have  increased  more  than  4,000,000  tons  within 
a  twelvemonth.  This  includes  1,228,000  tons  of 
cereals,  .So4,ooo  tons  of  steel  and  artillery,  650,000 
tons  of  petroleum  and  petrol,  and  248,000  tons  of 
transport  materials.  The  cereals  sent  from  America  to 
France  between  May  last  year  and  this  represent  bread 
for  IT, 000,000  of  Frenchmen  every  year,  and,  it  may 
be  added,  every  effort  is  being  made,  with  a  skill  and 
precision  unexampled,  to  make  sure  that  the  capacity 
to  go  on  feeding  the  people  of  France,  Italy,  and 
(ireat   Britain  may  be  greater  than  ever  this  year. 

Xeverlheless,  we  hope  that  1918  will  be  the  last 
year  of  big  fighting,  that  long  before  its  close  the 
Prussian  will  be  beaten  to  his  knees,  if  not  into  harm- 
lessness,  and  the  grovelling  surrender,  which  will  be 
his  attitude  when  he  realises  that  lie  has  met  his 
masters,  and  that  the  day  of  suffering  for  his  crimes 
has  come.  But  in  order  to  make  the  triumph  all  the 
more  complete,  and  the  peace  durable,   efforts  greater 


than  have  yet  been  made  are  necessary  in  the  way  of 
providing,  not  inerely  means  to  carry  on  the  fight,  but 
the  means  to  release  the  people  from  the  bondage  of 
debt  as  speedily  as  possible  after  the  war  ends.  To 
this  imperative  end  more  taxes  are  required,  and  we 
are  glad  to  see  that  President  Wilson,  as  usual  of  late, 
has  taken  the  lead  in  insisting  upon  a  larger  revenue. 
He  has  asked  Congress  to  provide  for  heavier  levies  on 
incomes,  war  profits,  and  luxuries.  "  There  is  indis- 
jnitable  evidence  of  prolitecring,"  he  declared,  "  and 
profiteering  that  cannot  be  got  at  by  restraints  of  con- 
science can  be  reached  by  taxation."  He  rightly  said, 
also,  that  it  would  be  an  unsound  policy  10  raise  too 
large  a  proportion  of  the  revenues  by  loans,  and  that 
the  ;£,'8oo,ooo,ooo  provided  for  the  coming  fiscal  year 
by  taxation  was  insuflicient  to  sustain  the  greatly  en- 
larged Budget.  The  present  generation  has  to  make 
its  sacrifices  and  to  realise  th;it  in  doing  so  it  is  lessen- 
ing the  pressure  upon  the  hoped-for  prosperity  to 
come.  President  Wilson  declared  that  he  was  "  never 
more  proud  to  1)e  an  .'Vmerican  than  he  is  now,"  and 
evidently  it  is  his  ho|)e  and  expectation  that  the  .\meri- 
can  ])eo|)le  will  give  all  their  means  lo  an  extent  unex- 
ampled in  order  to  provide  for  the  exjxin.ses  of  the  war 
without  adding  a  burden  of  debt  intolerable  to  be 
borne  on  those  that  come  after  us. 

Are  we  doing  the  same?  We  wish  it  were  possible 
to  answer  "  Yes,"  but  it  is  not,  and  the  pity  is  that 
it  is  not.  Our  revenue  from  taxation  ought  to  be 
larger  than  it  is,  or  than  the  Ciovernment  has  at- 
tempted to  make  it.  Already  our  debt  has  become 
stupendous,  and  the  charges  upon  it,  even  were  the 
war  to  end  now,  will  far  exceed  the  total  revenue  of 
the  three  kingdoms  before  the  war.  We  have  but  to 
remember  with  what  restlessness  and  grumbling  pre- 
war burdens  were  borne  to  be  able  to  grasp  in  soine  _ 
measure  what  such  a  debt  load  will  mean  to  the  spirit' 
of  the  nation  when  it  has  to  shoulder  it.  year  in  and 
out,  when  the  prospect  is  that  but  slight  relief  can 
come  through  the  whole  succeeding  centurv.  and  per- 
haps for  longer.  As  it  will  be  with  us,  so  will  it  be  with 
France  and  Italv  and  Belgium  and  forlorn  Russia, 
with  .Serbia  and  Rumania,  with  our  Colonies  and  India, 
with  all  those  who  have  participated  in  this  cataclysmic 
struggle — ay,  even  on  the  neutrals,  who  have  had  to 
spend  their  means  and  run  into  debt  in  order  to  pro- 
vide against  perilous  chances  of  being  brought  into  the 


520 


Xtbe  Jnvestoca'  IReview. 


Jlxe  t,  1918. 


conflict.  Another  and  higher  spirit  is  therefore  de- 
manded of  us,  and  we  shall  do  well  to  give  thought  to 
the  President's  appeal  as  earnestly  as  if  it  were  made 
directly  to  ourselves.  "  We  are  not  only  in  the  midst 
of  the  war,"  said  he,  "  we  are  at  the  very  peak  and 
crisis  of  it.  Hundreds  of  thousands  of  our  rnen  are 
carrying  our  hearts  with  them  and  our  fortunes  in  the 
field,  and  ships  are  crowding  fast  and  faster  to  the 
ports  of  France  and  England  with  regiment  after  regi- 
ment, thousand  after  thousand,  to  join  them  until  the 
enemy  shall  be  beaten  and  brought  to  a  reckoning 
with  mankind.  There  can  be  no  pause  or  intermission. 
The  great  enterprise  must,  on  the  contrary,  be  pushed 
with  greater  and  greater  energy."  And  to  make  sure 
of  this,  Ihe  people  must  out  down  iheir  money.  Will 
our  Government  imitate  President  Wilson's  action  and 
increase  our  taxes?  It  must,  or  we  shall  become  such 
slaves  to  our  creditors  as  must  cripple  our  energies  and 
clog  all  our  efforts  to  retrieve  our  position  in  the  van- 
guard of  human  progress. 


Government  Wants  and  Our  Duty. 

One  of  the  most  interesting  disclosures  made  by  Mr. 
Law  in  his  statement  made  to  a  journalist  for  loan 
propaganda  purposes,  related  to  the  way  in  which  his 
appeal  to  the  banks  has  been  responded  to.  As  the 
advertising  agents  of  the  Treasury  have  been  making 
the  nation  aware,  the  immediate  object  of  their  present 
"  stunt " — we  do  not  like  the  word,  but  it  has  become 
exceedingly  handy  in  indication  of  the  new  sensational 
fashion  in  advertising — is  to  capture  the  dividend  on 
last  year's  big  War  Loan  so  that  it  will  not  be  spent, 
but  returned  to  the  Treasury  to  earn  5  per  cent,  or  more 
interest.  Everybody  has  been  urged  to  hand  all  his 
dividend  money  back  without  using  any  of  it  for  other 
purposes,  and  we  believe  the  public  will  do  its  best  to 
respond  to  this  appeal.  As,  however,  no  Chancellor  of 
the  Exchequer  can  be  sure  of  the  popular  mood,  or  be 
able  to  guess  with  an  approach  to  accuracy  all  the 
effect  of  increased  taxation  and  higher  prices  upon  the 
power  of  the  people  to  save,  Mr.  Law  prudently  set  to 
work  to  enlist  the  bankers  on  his  side,  and,  as  usual, 
they  responded  to  him  with  a  whole-hearted  patriotism 
which  cannot  be  too  much  emphasised.  He  wishes 
every  investor,  big  and  small,  throughout  the  country  to 
make  laying-by  a  regular  habit,  and  is  satisfied  that  the 
^25,000,000  a  week  he  is  asking  for  would  be  easil) 
forthcoming  if  they  would  only  do  so.  The  banks  on 
their  part  have  joined  him  in  the  endeavour  to  do  their 
utmost  to  inculcate  and  make  enduring  this  habit  of 
savmg  for  National  purposes.  They  have  agreed  not 
only  to  invest  in  War  Bonds  all  the  dividends  they  re- 
ceive from  the  Government  stock  on  June  i,  but  to 
encourage  everyone  who  has  money  to  invest  to  place 
It  directly  in  National  War  Bonds,  and,  as  it  were,  to 
block  the  customer's  way  into  other  channels,  they  have 
also  passed  a  self-denying  ordinance  not  to  give  special 
rates  of  interest  on  deposits. 

What  may  be  done  in  the  way  of  helping  the  Treasury 
is  well  illustrated  by  some  figures  of  the  Prudential 
Assurance  Co.  It  holds  altogether  about  ;^3 1,000,000 
in  Government  loans,  and  the  dividend  on  its  war  stock 
to  be  paid  at  the  end  of  this  week  comes  to  ;^639,ooo. 
The  whole  of  this  will  be  invested  in  War  Bonds.  More- 
over, the  company  is  diligently  cultivating  the  saving 
habit  amongst  its  clients,  and  has  considerably  more 
than  100,000  war  stock  and  bond  policies  already  out- 
standing. In  their  newest  form  the  premiums  on  these 
policies  are  payable  monthly,  easing  the  practice  of  the 
thrift  habit  for  their  holders.  In  this  way  increasingly 
large  sums  of  money  are  finding  their  wav  into  the 
Treasury.  Other  great  life  offices,  such  as  the 
Alliance,  are  just  as  alert  and  diligent,  although 
not  perhaps  all  as  diligent  in  cultivating  publicity. 
In  fact,  when  we  look  at  the  attitude  of  institu- 
tions like  our  first-class  life  ofl!ices,  our  surprise 
rather  is  that  the  money  coming  in  should  be  so  small 
than  that  the  weekly  aggregate  should  fail  to  reach  Mr. 
Law's  minimum. 


This  leads  us  tp  suspect  that  a  considerable  section 
of  the  wealthier  portion  of  the  community  has  not  yet 
realised  what  the  war  means  any  more  than  their 
humbler  fellow-citizen.  Supposing  the  Allies  to  be 
defeated  by  the  Prussian  monster,  there  would  not  be 
any  wealth  left  in  this  country  for  anybody  to  lend. 
Goods  and  animals,  machinery,  riches  of  all  kinds, 
would  be  looted  and  carried  away.  That  is  what  has  hap- 
pened in  Belgium,  in  the  overrun  regions  of  Northern 
France,  in  Serbia,  in  Rumania,  in  Russia,  wherever  the 
feet  of  the  assassin  has  trod,  and  it  would  be  our  fate. 
It  is  worth  while,  then,  surely  for  every  man  to  try 
and  realise  the  position  we  stand  confronting  from  this 
point  of  view,  and  to  cultivate  the  habit  of  counting  as 
nothing  his  possessions  against  the  risk  of  losing  all. 
Is  it  necessary  to  have  a  large  balance  at  your  bankers 
in  order  to  believe  that  righteousness  will  yet  prevail? 
This  is  not  preaching  merely  in  obedience  to  the  call 
of  the  hour  for  manifestations  of  patriotism.  We  say 
nothing  that  we  have  not  backed  up  to  the  extent  of  our 
small  powers  throughout.  When  the  Government 
began  to  ask  for  money,  and  to  distribute  advertise- 
ments to  the  Press  in  order  to  attract  it,  this  journal  got 
a  modest  share  of  these  advertisements,  but  not  one 
penny  of  the  money  received  for  them  has  been  used  by 
the  proprietor  for  his  own  private  purposes.  He  resolved 
from  the  outset  that  it  should  not  be  used,  and  it  has  not 
been.  Notwithstanding  the  enormously  increased  cost 
of  paper  and  of  printing,  notwithstanding  many  other 
adverse  influences  and  conjunctions,  the  whole  of  the 
money  received  for  Treasury  advertisements,  without 
deduction  of  agents'  commission  paid,  or  any  part  of 
the  cost  of  producing  the  paper,  has  been  put  back  into 
war  stock,  and  the  whole  of  the  dividends  received  also 
have  gone  back,  and  more. 

This  is  not  said  with  any  notion  of  boasting  at  all, 
nor  with  a  view  to  self-advertisement,  but  simply  to 
lend  force  to  what  we  urge  to  be  the  duty  of  all  loyal 
citizens.  There  ought,  if  possible,  to  be  no  spending 
of  any  kind  out  of  the  earnings  paid  from  the  proceeds 
of  increased  public  debt,  still  less  any  dissipation  of 
war-made  profits.  If  that  rule  were  followed  by  every 
individual  or  corporation  now  making  profits  out  of 
Government  contracts,  the  financial  position  of  the 
Treasury  would  be  far  more  satisfactory  than  it  is. 
The  money  should  be  lent  without  solicitude  as  to  the 
rate  it  may  earn. 

It  will  have  to  come  to  this,  and  more  than  this. 
The  Chancellor  of  the  Exchequer  will  not  get  his 
^,25,000,000  a  week,  steadily  and  for  long  spells,  nor 
can  he  hope  to  increase  his  revenue  from  taxation- — 
unless  something  like  compulsion  is  applied  to  the 
wealthy,  and  some  forms  of  property,  the  most  valuable 
i'.nd  permanent  in  the  country  still  exempt,  brought 
under  the  tax  harrow.  Of  that  we  have  not  much  hope. 
Mr.  Bonar  Law  is  an  excellent  official  for  common- 
place times. 

How  many  people  are  going  to  try  to  be  in  a  position 
to  imitate  Lord  Inverclyde,  who  has  informed  the 
National  War  Savings  Committee  that  he  intends  to 
invest  in  War  Bonds  "  three  times  the  amount  of  the 
War  Loan  dividend  "  he  will  receive  to-day?  The  more 
people  who  are  aroused  to  emulate  this  nobleman— 
formerly  Sir  James  Burns,  Bart.,  and  eminent  in  the 
shipping  world — the  better  will  it  be  for  us  all.  All 
must  aim  to  do  something  more  than  put  by  the  divi- 
dends as  they  come  to  hand,  because  dividends  only 
emerge  once  in  six  months,  and  the  Treasury  want.i 
from  ;^6,ooo,ooo  to  ;^,*9, 000,000  of  money  every  day  of 
the  week  as  long  as  the  war  lasts,  and  perhaps  for  at 
least  six  months  after  it  has  worn  itself  out.  And  it  is 
better  to  give  and  to  lend  now,  before  that  conscription 
of  capita!  gets  to  loom  threateningly  on  the  horizon. 


It  i  announced  that  56  members  of  the  Stock  Exchange  have 
intimai  d  their  intention  not  to  apply  for  re-election,  and  that 
eight  oti  ers  had  not  renewed  their  applications  for  membership. 
The  depletion  of  the  ranks  goes  on  apace,  but  we  often  wonder 
how  so  many  manage  to  survive  under  present  afhor-i<^  con- 
ditions. 


Jlne  I,  1918. 


Ube  Jnveetors'  1Rev>tew» 


521 


Passing   Events. 

In  ihe   week  ended  last  Saturday  the  receipts    from 
National  War  Bond  sales,  Bank  of  England  issue,  was 
more    encouraging  at  ;£ri  1,235,000,     wh'ch    compares 
witii  ^'9,439,000  received  the  previous   week  and  with 
:.j69.2  15.000   the  week   before.        Last  week's    product 
hvas   an   increase   of   ;£."i,796,ooo   on    the   week    ended 
May    18,  and   was  subscribed  Ijy   8,299  applicants,    an 
increase  of  300.      Adding  this  to   the  totals  previously 
given,  we  have  now  a  total  of  ;^'709, 144,000  subscribed 
'ly  596,338  applicants.     We  cannot  say  "  individuals," 
becau.se  many  people    have  doubtless    subscribed  over 
and  over   again.      For   the  previous  week,   ended    the 
i8th  ult.,  the  sales  of  the  Post  Office  issue  of  National 
War  Bonds  was  less  good,  there  being,  at  12,800,  3,105 
fewer  applications,  and  the  amount  being  ;^S4,520  less 
"-  ;6354,2oo.     This  decrease  is  no  doubt  ascribable  to 
the  fact  that  Whit  week  was  at  hand.      The  total   to 
date  netted  by  sales  of  this  form  of  debt  has  been  about 
;^, 28,900,000,       and      of   -War     Savings      certificates 
2,468,000  were  sold  during  the  same  week  ended  May 
18,  and  this  brings  up  the  aggregate  sales  to  date  to 
197.595,000,      which    means     that    the     Treasury    has 
gathered  in  about  ^^  153, 136,000  by  this  instrument  of 
credit.      The  total  from   all  sources,   measured  by   the 
week,  does  not  amount  to  half  the  Exchequer  require- 
ments. 

It  is  not  wonderful  that  in  these  circumstances  the 
Chancellor  of  the  Exchequer  should  be  doing  his 
utmost  to  stimulate  the  flow  of  means  to  the  Treasury. 
He  has  been  giving  a  Press  interview  to  help  things, 
at  which  he  again  expressed  his  distaste  for  great 
Government  loans,  "  spectacular"  affairs  which  bring 
in  a  lump  of  money  and  reduce  the  fertility  of  all 
current  forms  of  credit  manipulations  for  a  long  while 
after  their  subscription.  And  we  agree  with  him.  He 
is  right  enough,  but  only  provided  he  can  secure 
sufficient  means  to  go  on  with  by  continuous  borrow- 
ing. Therefore  we  give  him  all  the  support  we  can 
in  pursuing  his  campaign.  "  Nobody's  money  can  be 
neutral,"  he  said,  "and  money  lent  to  the  countrv 
fights  for  the  country,"  which  is  axiomaticallv  true, 
but  unfortunately  it  is  not  the  "  neutralitv  "  of  money, 
but  its  selfishness,  which  lies  nt  the  root  of  the  trouble. 
And  all  the  appeals  of  the  Government  advertising 
agents  are  made  to  selfishness  in  its  crudest  form. 
Nevertheless,  we  fear  it  will  end  in  good  Mr.  Law's 
having  to  study  fresh  sources  of  taxation,  with  a  wet 
towel  round  his  head,  perhaps,  and  with  national  im- 
potence looming  large  before  him,  like  a  bad  man 
possessed  of  a  club — unless  the  people  awake  and 
grow  heroic  in  their  sacrifices. 


Last  week's  income  again  amounted  to  little,  only  to 
£,9,687,000  from  taxation  and  St.ite  services,  but  ex- 
penditure was  also  a  trifle  smaller,  just  in  passing,  a 
"l^rc  ;C43, 771,000,  or  ;^6, 253,000  a  day,  of  which 
*42, 950.000  was  on  suppl\-.  There  were,  however, 
;<f5-.975.ooo  of  supply  Treasurv  bills  which  fell  due 
for  repayment  and  had  to  be  'provided  for,  besides 
;£.  1,819,000  of  War  Loan  and  Exchequer  Bonds  to  be 
redeemed,  and  one  or  two  other  trifling  items  to  be  liqui- 
dated, .so  the  Government  had  to  issue  £'58,363,000 
of  new  Treasury  bills,  or  £"5,433,000  more'  than  had 
to  be  redeemed.  The  total  of  these  bills  outstanding 
IS  therefore  now  raised  to  £^992,336,000.  Moreover, 
all  the  amount  paid  off  in  the  previous  week  on  Ways 
and  Means  advances  had  to  be  renewed,  ind  rather 
'T'o^'e,  £'8,546,000  being  got  from  the  bankers  in  this 
way.  The  total  outstanding  of  these  Wavs  and  Means 
advances  is,  therefore,  now  £"104,028,000,  but,  thanks 
to  the  receipt  of  £'0,654,000  from  other  war  debt 
sources  and  of  £:i  1,838,000,  proceeds  of  National  War 
Bond  sales,  together  with  £1,300,000  brought  in  bv 
sales  of  War  Savings  certificates,  the  Exchequer  man- 
aged to  end  the  week  with  £^842, 000  over,  to  be  added 
to  the  Exchequer  balances,  therebv  raising  them  to 
/•  15.749.000.  There  is  nothing  special  '.o  draw  atten- 
tion to  in  the  actual  revenue  receipts  of  the  week,  but 
Ave  hope  that  the  lean  time  in  the  flow  of  taxes  will 
soon  come  to  an  end. 


A  correspondent  in  the  Times  suggests  that  much  more 
revenue  might  be  drawn  from  a  more  drastic  assertion 
of  the  nation's  rights  to  inherit  intestate  estates.  He 
quotes  the  deliverance  of  the  late  Mr.  Joshua  Williams 
in  his  book  on  "  The  Law  of  Personal  Property,"  and 
the  advice  there  given  is  good,  and  especially  oppor- 
tune at  the  present  moment.  In  essence  Mr.  Williams 
urged  that  where  the  property  could  be  claimed  by  no 
near  relative  it  should  go  to  the  uses  of  the  State. 
Public  claims,  in  other  words,  seemed  to  him  prefer- 
able to  those  of  the  man  who,  in  the  case  of  real  estate, 
founds  his  title  on  his  descent  from  the  most  remote 
male  paternal  ancestor  of  the  intestate,  or  who  claims 
a  share  in  the  personalty  because  he  chances  to  be 
a  survivor  amongst  the  multitude  standing  in  the  fifth 
or  sixth  degree  of  a  series  of  kindred  which  increases, 
as  it  grows  distant,  in  geometrical  progression.  We 
should  go  much  further  than  Mr.  Williams  and  claim 
for  the  public  use  a  much  larger  shtire  of  all  accumu- 
lations than  has  ever  been  done  under  our  death 
duties.  After  all,  does  the  inheritor  of  a  great  estate 
always  or  often  benefit  by  what  is  left  to  him?  Would 
he  be  injured  at  all  in  any  real  sense  if  he  were  asked 
to  begin  life,  or  to  continue  it,  comparatively  poorr* 
How  many  great  fortunes  have  their  root  in  injustice, 
in  unfair  treatment  of  the  amasser's  fellow-citizens? 
How  many  heirs  of  fortunes  go  to  the  dogs? 

^Various  distinguished  advocates  have  been  urging 
us  to  intervene  actively  to  "help  Russia"  against 
the  German  tyranny,  and  in  particular  Dr.  Harold 
Williams,  the  able  correspondent  of  the  Daily 
Chronicle,  formerly  in  Petrograd,  has  appealed  to  the 
Government  to  intervene  with  arms  in  its  hands. 
Lord  Robert  Cecil  gave  the  correct  answer  to  such 
appeals  the  other  day  in  saying  that  we  and  our  Allies 
were  watching  Russian  affairs  with  the  utmost  intent- 
ness,  and  would  help  when  help  was  possible,  or 
words  to  that  effect.  What  else  can  be  said  just  now  ? 
We  have  no  troops  to  spare,  still  les*s  ships  to  convey 
them  with  their  furniture  of  war  to  Russia  at  the 
present  time  ;  and,  after  all,  could  we  hope  to  do  anv 
good  if  we  did  intervene?  It  is  said  always  that  with 
the  help  of  the  Japanese  we,  the  Allies,  might  pene- 
trate into  Russia  through  the  Pacific ;  but  woulit 
that  be  desirable,  and  would  there  be  any  guarantee 
that  the  effect  would  be  as  wholesome  as  the  sorrow- 
ing friends  of  Russia  may  dream?  We  do  not  think 
so,  and  do  not  believe  that  the  moment  has  come  for 
any  effective  direct  military  help  to  be  accorded  to 
Russia  by  the  Allies.  It  seems  to  us  that  so  far  as 
military  help  goes  wc  are  doing  our  utmost  to  assist 
Russia   now   on  all    fronts.      Not  only   in    France   and 


THE    DIRECTORS    OF 

LLOYDS  BANK 
LIMITED 

desire   to   call    the    attention    of 

their    customers    and    others    to 

the    advisability   of   investing  all 

available  moneys  in 

NATIONAL 
WAR    BONDS 

and   of   applying    further   savings'  in 
the  «8ame  way. 

In  the  Savings  Bank  Department  small 

sums  can  be  accumulated  at  interast 

until  they  reach  the  minimum  required 

for  purchasing  WAR    BONDS. 


522 


XTbe  Jnvestors'  IReview, 


June  i,  1918. 


Belgium,  but  in  Northern  Italy,  in  Macedoina,  in  Syria 
and  Mesopotamia,  we  are  fighting  the  battle  of  the 
Russians,  quite  as  effectively  as  if  we  sent  an  army  into 
Siberia.  For  the  rest  they  must  meanwhile  help  them- 
selves, as,  indeed,  they  appear  to  be  doing,  judging 
by  the  news  of  peasant  revolts,  &c.,  that  filter  through. 


Our  best  ally  in  helping  to  rouse  and  deliver  Russia 
is  the  German  himself.  His  stupid  brutality,  his 
grotesquely  savage  methods  of  extracting  from  the 
people  their  substance,  his  intolerable  cruelty,  too,  on 
all  occasions,  is  raising  the  countryside  everywhere 
against  him.  A  correspondent  of  the  Daily  News,  Mr. 
Arthur  Ransome,  gave  in  its  pages  an  example  some 
days  ago  which  vividly  illustrates  the  fatuous  stupidity 
of  the  German  administrator.  It  seems  that  the  ukase 
went  forth  from  the  conquerors  that  the  population 
must  deliver  to  them  three  eggs  a  week  per  hen,  accord- 
ing to  the  register"  of  fowls  the  Boche  had  made.  If 
a  fowl  happened  to  die,  its  carcase  had  to  be  pro- 
duced to  the  authorities  before  the  owner  pot  liberated 
from  his  obligation  as  to  eggs.  Thousands  of  similar 
stories,  Mr.  Ransome  says,  might  be  told,  and  every 
day  there  are  peasant  risings  causing  perpetual  con- 
flict, not  only  between  the  Germans  and  the  peasantry, 
but  also  between  the  Germans  and  the  classes  their 
Prussian  slave-drivers  have  appointed  to  rule.  Ger- 
man rebelling  against  German,  that  is  indeed  ominous. 
Or  is  it  German  against  Prussian?  Whatever  the 
arrangement,  it  is  universal  antagonism  of  ruled  to 
ruler,  and  the  Prussian  himself  is  making  his  gloated- 
over  penetration  of  Russia  and  the  "open  road"  to 
the  Far  East  impossible.  Is  it  not  wise  on  our  part 
to  leave  him  at  his  work,  and  to  allow  the  Russian 
people  to  find  themselves,  meantime  watching  for 
every  opportunity  to  strengthen  their  hands  in  mak- 
ing effective  revolt?  The  patriotic  people  of  Russia  are 
already  awakening  from  their  stupor,  and  are  getting 
ready  to  work  out  their  own  redemption.  They  shall 
have  help  at  need 'when  ready  for  it,  but  it  is  not  our 
business  to  thrust  our  hands  into  their  domestic  con- 
cerns just  yet. 

The  Committee,  of  which  Sir  Archibald  Williamson, 
M.P.,  is  chairman,  appointed  last  year  by  the  Board 
of  Trade  to  consider  the  question  of  national  electric 
power  supply,  has  issued  its  report,  in  which  several 
valuable  recommendations  are  made.  Evidently  the 
problem  has  been  approached  from  a  broad-minded 
standpoint,  and  the  scheme  outlined  might  at  a  compara- 
tively early  date  provide  the  country  with  an  ample 
supply  of  cheap  power,  so  necessary  in  these  days  for 
industrial  progress.  It  was  estimated  by  witnesses 
of  high  authority  that  the  saving  of  fuel  which  would 
result  from  combined  generation  of  electricity,  the 
reduction  in  factory  costs,  and  the  increased  output 
will  represent  not  less  than  ;^ioo,ooo,ooo  per  annum,  a 
very  important  consideration  in  view  of  the  financial 
difficulties  created  by  the  war.  It  is  therefore  pro- 
posed that  a  new  body  called  the  Electricity  Commis- 
sioners should  be  set  up,  to  whom  should  be  trans- 
ferred the  existing  powers  of  the  Board  of  Trade,  the 
Local  Government  Board,  and  other  authorities,  and 
that  large  additional  powers  should  be  given  them  for 
regulating  and  encouraging  the  generation  and  distri- 
bution of  electricity.  It  is  recommended  that  the 
country  should  be  divided  into  districts,  technically 
Suitable  for  economical  generation  and  distribution,  and 
that  district  electricity  boards  should  be  formed  so  as 
to  decentralise  control  as  much  as  possible,  and  assure 
that  the  differing  needs  of  various  localities  will  receive 
proper  attention.  Space  forbids  our  going  into  all  the 
details,  but  the  report  outlines  the  basis  of  a  really 
practicable  scheme  such  as  we  have  frequently  advo- 
cated, and  we  hope  action  in  the  matter  will  not  be 
unduly  delayed. 


been  accomplished,  there  is  still  plenty  of  room  for 
further  development.  From  an  official  and  compul- 
sory census  obtained  on  April  27,  we  gather  that  the 
acreage  under  wheat  was  2,665,000,  an  increase  of 
752,000  acres,  or  nearly  40  per  cent.,  giving  the  highest 
area  recorded  since  1882.  Oats  have  increased  735,000 
to  2,820,000  acres,  or  20  per  cent,  above  the  previous 
highest  record.  Rye,  pulse,  &c.,  is  up  nearly  70  per 
cent.,  and  the  potato  acreage  has  increased  50  per 
cent,  to  645,000  acres,  exceeding  the  previous  record 
by  27  per  cent.  Altogether,  the  area  under  corn  and 
potatoes  has  been  increased  by  more  than  2,000,000 
acres  to  8,302,000,  and  in  the  meantime  statistics 
show  that  up  to  the  middle  of  March  1,800,000  acres 
of  "  permanent  "  grass  had  been  broken  up  in  Eng- 
land and  Wales,  and  it  is  estimated  that  a  total  addi- 
tion of  not  less  than  2J  million  acres  has  been  made  to 
the  tillage  area  since  191 6.  Moreover,  we  learn  that 
no  fewer  than  1,300,000  allotments,  have  been  taken  up 
— one  of  the  strongest  evidences  ever  produced  of  the 
natural  longing  of  all  sorts  and  conditions  of  people 
to  have  a  "cabbage  patch" — or  a  potato  or  onion 
patch — of  their  own.  Let  us  for  once  use  that  horribly 
hard-worked  word,  and  state  that  all  this  is  not  mere 
"camouflage."  If  the  statistics  are  reliable  (which 
we  do  not  for  a  moment  question),  we  shall  produce 
at  home  four-fifths  of  our  breadstuffs  this  season,  as 
compared  with  one-fourth  for  1917-18,  and  one-fifth  in 
1916-17.  In  many  other  respects  the  figures  are  most 
hopeful,  and  we  can  only  hope  that  the  good  work 
started  under  war  pressure  will  continue  and  fructify 
when  at  long  last  we  return  to  those  Utopian  condi- 
tions of  peace  which  seem  so  far  away. 


Very  encouraging  is  the  statement  issued  by  Sir 
Arthur  Lee,  Director-General  of  Food  Production,  and 
we  draw  the  conclusion  that  although  much  has  already 


German  ideas  of  how  the  Ukraine  treaty  should  be 
interpreted  are  characteristic.  It  is  stated  in  the  Times 
that  Austria-Hungary  is  prepared  to  import 
;^40,ooo,ooo  worth  of  spirituous  liquors  into  South 
Russia  without  asking  the  leave  of  the  people.  Neither 
the  Kieff  Rada  nor  the  Moscow  Soviet  are  prepared  to 
contemplate  a  forced  import  of  liquor  on  this  or  any 
other  scale.  Then  in  order  to  insure  further  that  food 
shall  be  forthcoming  in  exchange,  elaborate  prepara- 
tions have  been  made  to  import  Austro-German  indus- 
trial products  into  the  Ukraine.  The  Austrians  have 
arranged  to  dispatch  at  an  early  date  upwards  of  770 
truckloads  of  goods,  valued  at  less  than  one-tenth  of 
the  proposed  liquor  import.  Up  to  May  i,  goods  to 
the  value  of  under  ;^4oo,ooo,  and  includine  33  truck- 
loads  of  scythes  and  sickles,  seven  trucks  of  enamelled 
ware,  21  trucks  of  agricultural  machinery,  one  truck 
of  window  glass,  five  trucks  of  mineral  waters,  two 
trucks  of  lamps  and  other  lighting  material,  and  one 
truck  of  miscellaneous  goods,  had  been  despatched 
from  Vienna.  "  A  shoddier  consignment  has  never 
crossed  even  the  German  frontier,"  says  the  Times 
contributor,  but  none  of  this  cpmmercial  industry  and 
— enterprise,  shall  we  say — has  yet  got  at  the  corn, 
and  the  Cologne  Gazette  is  even  bold  enough  to  jeer  at 
the  food  fiasco.  Before  the  Brest  treaty  was  patched 
up,  it  says,  officials  told  wonderful  stories  about  the 
fine  stocks  of  corn  in  the  Ukraine,  so  as  to  emphasise 
the  beauty  of  Prussian  diplomacy,  and  to  refresh  in 
vision  the  lean-stomached  at  home.  Scarcely  was  the 
treaty  signed  than  the  people  were  told  that  the  stocks 
of  grain  were  heavily  over-estimated,  and  little  or  no 
grain  has  so  far  been  forthcoming.  Little  ever  will 
be.  But  the  Germans  are  marvellous  adepts  at  simu- 
lation, make  believe,  and  probably  many  of  them  still 
continue  to  believe  that  food  and  other  riches  untold  lie 
around  for  the  gathering  in  Russia,  and  that  their 
commerce  will  arise  triumphant,  and  assert  its 
supremacy  when  the  war  ends,  not  only  over  all 
Russia,  but  over  Asia  as  well.  But  they  are  going  to 
be  very  hungry  first. 

Results  obtained  by  the  Royal  Mail  Steam  Packet 
Co.  last  year  show  relatively  small  changes  compared 
with  those  for  1916.  Trading  profits  were  ;^i3,ooo  less 
at  ;f 725.000,  and  interest,  rents,  &c.,  also  feir;^i3,ooo. 


Jlnf.  I,  1918. 


Xlbe  Jnveetors'  IRevtew. 


523 


but  ;^"i5,ooo  more  was  brought  in,  and  the  total  of 
^£827,000  is  only  ;£,!  1,000  down.  This  is  offset  by  a 
saving  in  debenture  interest,  and  after  again  placing 
;^20o,ooo  to  reserve  and  ;£r25,ooo  to  superannuation 
fund,  the  dividend  of  7  per  cent,  is  repeated,  and  the 
amount  to  be  carried  forward  is  practically  the  same  at 
_^52,ooo.  Hills  payable  and  other  debts  have  increased 
;^46o,c>oo  to  ;^3, 175,000,  while  freights  under  collec- 
tion are  up  ;^"i 40,000  at  ;£'476,ooo,  and  other  debts  due 
to  the  company  have  increased  ;^8io,ooo  to  ^"936,000, 
but  cash  is  ;^305,ooo  lower  at  ;£,"i,4i5,ooo.  Book  value 
of  fleet,  investments  in  allied  companies,  and  war  securi- 
ties have  risen  ;^70,ooo  to  ;^io, 438,000,  and  sundry 
investments  also  are  ;4'70,ooo  higher  at  ;^i76,doo,  but 
premises  at  home  and  abroad  have  been  written  down 
;^95,ooo  to  ;^543,ooo.  During-  the  greater  part  of  the 
year  those  of  the  company's  vessels  not  engaged  in  war 
service  were,  with  one  or  two  minor  exceptions,  re- 
quisitioned by  the  Ministry  of  Shipping.  Three  of  the 
company's  vessels  were  sunk  by  enemy  action  during 
the  year,  and  appended  to  the  report  is  a  list  of  the 
members  of  the  staff  who  have  died  in  the  service  of 
their  country,  as  well  as  of  those  who  have  been 
awarded  distinctions.  Reference  is  made  to  the  ac- 
quisition of  a  substantial  interest  in  the  Argentine  Navi- 
gation Co.,  and  it  is  announced  that  the  first  of  the 
large  steamers  under  construction  for  R.M.S.P.  Meat 
Transports,  Ltd.,  has  been  delivered,  and  has  taken  up 
service.  Under  the  abnormal  conditions  prevailing  the 
accounts  afford  little  opportunity  for  comparison  with 
the  results  of  previous  years,  but  the  organisation  is 
now  a  very  powerful  one,  and  will  be  an  increasingly 
important  factor  in  overseas  trade  when  peace  is  re- 
stored. 


A  welcome  recovery  was  shown  by  the  Leopoldina 
Railway  Co.,  Ltd.,  last  year.  Gross  currency  receipts 
^imounted  to  Rs.  29,465,000,  an  increase  of 
Rs.3, 214,000,  or  12J  per  cent.,  but  thanks  to  an  im- 
provement in  the  exchange,  which  averaged  i2|fd., 
against  i2^d.,  sterling  receipts  were  ;^26o,6oo,  or 
19!  per  cent.,  higher  at  ;£■!, 580,000.  Unfortunately, 
working  expenses  increased  ;(^'i9i,ooo  to  ;^i,09o,ooo, 
the  ratio  advancing  from  68.08  per  cent,  to  68.95  per 
cent.,  but  that  is  a  universal  experience,  and  inevitable 
under  the  circumstances.  Including  ;^i 52,000  brought 
forward,  the  available  balance  is  ;^68,ooo  higher  at 
^665,000,  while  interest  and  other  charges  require 
^20,000  less.  Last  year  _;^3o,ooo  was  set  aside  for 
income-tax,  but  there  is  no  corresponding  item  this 
time  ;  on  the  other  hand,  ;^io,ooo  is  allocated  to  repair 
damage  caused  by  goods.  Out  of  the  balance  it  is  pro- 
posed to  pay  a  dividend  of  ij  per  cent.,  against  nil,  on 
the  ordinary  stock,  and  the  carry  forward  is  reduced 
;^i 5,000  to  j<^i 37,000.  The  number  of  passengers 
carried  showed  an  increase  of  790,000  at  8,550,000,  and 
the  goods  tonnage  advanced  168,000  to  1,271,000  tons. 
Coffee,  sugar,  sugar  cane,  and  firewood  showed  large 
increases,  but  there  was  a  decline  in  maize.  The  im- 
mediate prospects  are  regarded  as  encouraging,  but 
much  depends  on  shipping  facilities,  as  to  which  it  is 
impossible  to  be  over  confident. 


There  is  a  sweet  innocence  about  Mr.  W.  M. 
Acworth's  report  on  Rhodesian  railway  administration 
as  told  by  the  Times  correspondent  at  the  Cape  (the 
only  source  we  have  seen  so  far)  that  makes  us  strongly 
suspicious.  This  authority  says  that  "  the  Rhodesian 
malcontents  who  clamoured  for  the  inquiry  in  the 
belief  thpt  the  Commissioner  would  come  to  curse  will 
be  mortified  to  find  that  he  has  blessed."  .A.nd  so  we 
are  not  surprised  to  learn  that  in  the  view  of  the  corre- 
spondent aforesaid  Mr.  Acworth's  report  "is  a  model 
•of  clear  thinking  and  lucid  expression,"  or  that  this 
most  estimable  commissioner  finds  the  criticisms  as  to 
■excessive  charges  "  largely  the'  result  of  misapprehen- 
sion due  to  obscure  and  complicated  facts."  Still 
<|uoting  from  the  authority  mentioned,  we  are  told  that 
the    complainants  "  wholly  failed  to  prove  their  case. 


Existmg  rates  in  Rhodesia,  taken  as  a  whole,  so  far 
from  being  excessive,  are,  having  regard  to  all  the  cir- 
cumstances, surprisingly  moderate.  Rates  for  all 
traffic  on  the  Rhodesian  railways  exceed  the  average 
rate  on  the  Union  railways  not  by  50  to  100  per  cent., 
as  complained,  but  by  precisely  8.2  per  <;ent.,"  and  our 
Times  man  goes  on  to  say  that  this  is  "an  insignifi- 
cant difference  which  is  fully  explained  by  the  greater 
density  of  traffic  in  the  Union."  And  so  we  are  led  up 
to  the  assertion  that  "  Mr.  Acworth  categorically 
denies  the  existence  of  any  evidence  warranting  the 
constant  complaint  that  the  Rhodesian  rates  are  throt- 
tling progress.  The  contrary  is  demonstrated  by  the 
growth  of  the  tonnage  carried,  which  shows  that  pro- 
gress is  steady  and  substantial."  We  wonder  how 
much  it  cost  to  cable  this  kind  of  flatulent  rubbish,  and 
how  long  it  will  be  before  Mr.  Acworth's  complete 
report  is  available  here  for  any  knowledgeable  kind  of 
criticism.  We  can  accept  the  figures  quoted,  and  yet 
have  a  firm  conviction  that  Rhodesia  is  actually  being 
"  throttled  "  by  the  railway  administration.  What  is 
the  sense  of  putting  forward  such  a  figure  as  8.2  per 
cent,  as  the  average  super-charge  when  it  is  notorious 
that  a  big  proportion  of  the  traffic  consists  of  Wankie 
coal,  and  ore  from  the  Broken  Hill  and  other  regions 
which  are  carried  at  exceptional  rates?  It  is  equally 
notorious  that  ordinary  goods  are  charged  at  a 
"  throttling  "  rate  as  was  proved  by  the  Beira  Rail- 
way Committee  some  years  ago.  The  "  average  " 
may  be  as  stated,  but  that  affords  no  comfort  to  the 
ordinary  settlers  who  pay  heavily  both  on  their  im- 
ports and  exports.  Have  the  people  of  Rhodesia  at 
this  day  any  real  option  as  to  whether  their  goods  shall 
go  by  the  short  haul  to  Beira,  or  the  long  haul  to  Cape 
Town,  and  do  they  get  any  benefit  in  rates  when  they 
have  made  their  choice?  We  shall  look  for  Mr.  Ac- 
worth's  complete  report  with  exceptional  interest  to 
see  whether  any  light  is  thrown  on  these  and  similar 
points,  because  we  refuse  to  believe  that  an  expert  of 
Mr.  Acworth's  proved  ability  can  have  dropped  into 
the  fallacy  of  thinking  that  "average"  rates -are  any 
answer  to  cases  of  individual  and  general  grievance. 
The  mere  fact  that  the  agitation  for  a  revision  of  rates 
has  gone  on  for  years  after  the  Beira  Committee's  ex- 
posure, when  some  (largely  illusory)  concessions  were 
made,  proves  that  glaring  wrongs  have  not  been  mate- 
rially redressed.  Colonials  never,  in  our  experience, 
quibble  about  trifles ;  the  iron  must  enter  into  their 
soul  before  they  are  moved  to  action. 


Although  the  trading  profits  of  Schweppes,  Ltd., 
last  year  were  ;^"2,ooo  smaller  at  ;^93,340,  the  results 
may  be  considered  highly  gratifying  under  all  the  cir- 
cumstances. It  was  found  possible  to  save  no  less  than 
^8,000  in  general  expenses  and  ;^4,ooo  in  income-tax, 
directors'  fees,  &c.,  with  the  result  that  after  providing 
for  debenture  interest  the  nett  profit  shows  an  increase 
of  ;^io,ooo  at  ;£'48,520.  However,  the  amount  brought 
in  was  less,  and  after  repeating  the  dividend  of  7  per 
cent,  on  the  ordinary  shares,  the  balance  forward  is  in- 
creased by  ;^5,5oo  to  ;!^i3,3oo.  The  directors  are  of 
opinion  that  the  restrictions  and  difficulties  experienced 
will  not  only  continue,  but  will  increase  during  the 
war,  and  they  regret  that  they  are  unable  to  recom- 
mend the  payment  of  a  dividend  on  the  deferred  shares. 
All  the  same,  the  business  has  kept  up  better  than 
might  have  been  expected. 


Last  year  to  November  30  was  the  most  successful 
experienced  by  R.  White  and  Sons,  Ltd.,  the  well-known 
table  water  manufacturers,  for  a  long  time.  Trading 
profits  amounted  to  ;^i43,500,  an  increase  of  ;^i5,ooo, 
and  the  nett  profit  comes  out  at  ;^39,4oo,  an  increase 
of  ;^7,ooo.  The  large  sum  of  ^123,000  was  brought 
in,  and  after  setting  aside  ;^50,ooo  as  a  reserve  for  con- 
tingencies, the  directors  are  able  to  recommend  that  the 
arrears  of  preference  dividend  (four  years)  be  paid  off. 
and  in  addition  5  per  cent,  is  to  be  paid  on  the  preferred 
ordinary  and  15  per  cent,  on  the  ordinary  shares  for  tho 


524 


Zbc  Jnvestors'  IRevtew. 


June  i,  1918. 


past  year.  Moreover,  ;^5,ooo  is  placed  to  the  special 
reserve  fund  in  which  the  preference  shareholders  are 
interested,  and  ;£'' 5,570  remains  to  be  carried  forward. 
During  the  year  ^,'27,800  of  dclienture  stock  has  been 
cancelled,  and  in  other  respects  the  position  of  the  com- 
pany has  substantially  improved.  Changes  in  the 
balance-sheet  call  for  no  special  notice,  but  we  may 
mention  that  the  company  adopts  the  very  convenient 
practice  of  setting  out  the  jjrcvious  year's  figures,  so 
that  all  the  items  can  be  compared  without  the  trouble 
of  having  to  turn  up  the  last  report.  It  is  a  simple 
arrangement  that  might  with  advantage  be  much  more 
generally  followed. 


The  fJroken  Hill  Proprietary  Co.  has  had  a  very 
prosperous  career  as  a  purely  mining  proposition,  and 
its  prosperity  has  not  diminished  since  it  embarked,  a 
tew  years  ago,  upon  the  iron  and  steel  industry.  This 
has  been  so  rapidly  developed  that  the  undertaking 
is  one  of  the  largest  of  its  kind  in  the  Southern  Hemi- 
sphere, and  the  directors  have  just  decided,  in  view  of 
the  infinitely  more  money  now  locked  up  in  the  busi- 
ness, to  capitalise  a  large  amount  of  the  undistributed 
profits,  and  to  reorganise  the  capital.  At  present  the 
capital  consists  of  1,500,000  of  8s.  shares,  amounting 
to  ;£"6oo,ooo,  but  318,994  shares  are  unissued.  These 
are  to  be  offered  to  the  shareholders  pro  rata  at  40s. 
l>er  share,  or  30s.  less  than  the  market  quotation,  .^fter 
this  issue  has  been  completed  the  capital  is  to  be  in- 
creased from  ;^'6oo,ooo  to  ;^3 ,000,000  by  the  creation 
of  1,500,000  new  shares  of  12s.  each,  and  the  same 
number  of  new  shares  of  ;^i  each.  A  bonus  of  12s. 
par  share  on  the  existing  shares  will  be  declared,  and 
v»  ill  be  satisfied  by  the  issue  of  one  new  12s.  share  for 
c:\erv  8s.  share  held,  andthese  shares  will  then  be  con- 
\  crted  into  one  ;^i  share.  This  will  capitalise 
/."900,ooo  of  the  reserve  fund.  Upon  the  completion 
<!f  this  arrangement  a  further  ;^6oo,ooo  of  the  reserve 
fund  will  be  capitalised  by  declaring  a  bonus  of  20s.  for 
every  21^  shares  held,  and  in  satisfaction  thereof 
600,000  ;^i  shares  will  be  issued'  to  the  shareholders, 
making  the  total  issued  capital  ;^2, 100,000.  The  issue 
lias  been  underwritten,  and  the  Treasury  consent  to  the 
scheme  has  been  obtained.  If  the  scheme  is  approved 
at  the  special  meeting  to  be  held  on  June  to,  and  it  is 
almost  sure  to  be,  the  effect  on  the  shareholders'  posi- 
tion will  be  very  satisfactory.  For  every  to  shares  of 
Ss.  each  now  held,  a  shareholder  will  receive  14  shares 
of  y£r  each.  The  reserve  fund,  which  was  increased 
from  ;^4TO,ooo  to  ;^i, 910,000  in  November,  1917,  will 
i)e  reduced  to  its  former  figure,  and  the  balance  at  the 
credit  of  profit  and  loss  account  will  stand  at  ;^234,966. 
Most  of  the  profits  now  to  be  capitalised  were  accumu- 
lated prior  to  the  war. 


The  two  principal  mines  belonging  to  the  Goerz 
group  had  a  favourable  experience  last  year,  despite 
the  growth  of  working  expenses  and  shortage  of  native 
labour.  The  Modderfontein  Deep  Levels  again  milled 
nn  increased  quantity  of  ore,  the  total  being  40,400 
tons  larger  at  494,400  tons.  This  yielded  ^964,393,  an 
increase  of  ;^io6,3o8,  the  average  yield  being  is.  3d. 
higher  at  39s.  per  ton,  following  an  increase  of  3s.  4d. 
in  1917.  Owing  to  the  larger  quantity  treated,  it  was 
"ossible  to  keep  costs  at  the  1916  level  of  i6s.  4d.  per 
ton,  and  consequently  the  rate  of  profit  rose  by  is.  3d. 
('>  22s.  8d.  per  ton.  The  working  profit  was  thus 
^561,176,  and  the  total  profit  ;^56g,30i.  acainst 
^492,. 137,  which  enabled  the  dividend  to  be  raised  from 
'  7J  to  85  per  cent.,  and  the  carry  forward  to  be  in- 
-  reased  from  .^^^81,462  to  ;^i26,475.  No  change  is 
'  hown  in  the  quantity  of  the  ore  reserxes,  which  remain 
"t  3,320,000  tons,  but  the  value  has  been  increased  from 
"55.  8d.  to  36s.  I  id.  per  ton  over  78  inches.  The  plant 
now  consists  of  70  stamps  and  8  tube  mills.  Working 
"ists  will  tend  to  increase,  but  this  increase  should  he 
<'ully  met  by  a  higher  recovery  due  to  the  higher  grade 
<-f  the  reserves.     The  consulting  engineer  anticipates. 


therefore,  an  increase  in  profits  this  year.  The  Geduld 
by  treating  a  much  larger  tonnage  with  its  enlarged 
plant  was  able  to  increase  its  output  by  jQi2j,i^  to 
;^63i,364,  despite  the  fact  that,  as  was  foreshadowed 
would  be  the  case  last  year,  the  yield  per  ton  was  lower. 
The  average  yield  was  is.  6d.  lower  at  29s.  8d.  per  ton, 
but  the  reduction  was  is.  iid.  to  19s.  8d.  Conse- 
quently the  profit  rate  was  sd.  higher  at  los.  per  ton, 
the  working  profit  being  ;^2i2,838.  The  total  profit 
was  _^22i,2o6,  an  increase  of  ;^49,740.  This  suflTiced  to 
maintain  the  dividend  at  10  per  cent,  and  to  meet  the 
heavy  expenditure  on  equipment,  which  absorbed 
^"132, 665,  and  nothing  is  carried  forward,  against 
;^44,322  brought  in.  Reserves  of  ore  show  the  small 
increase  of  50,000  tons  to  2,200,000  tons,  but  the  value 
is  5d.  higher  at  31s.  lod.  per  ton.  The  full  battery  of 
100,000  stamps,  with  a  monthly  capacity  of  40,000  tons, 
has  operated  since  January  23  last,  and  thereis  a  good 
prospect  of  a   further  expansion  in  profits  this  year. 


The  World's  Cereal   Position. 


At  all  times  the  position  of  the  world's  food  supply  is  a 
subject  of  supreme  importance,  and  with  conditions  as  they  are 
at  present  its  consideration  is  invested  with  more  than  usual 
interest.  In  the  existing  state  of  affairs  it  is  needless  to  say  a 
prcblem  of  very  great  complexity.  Many  countries  are  unable 
to  make  any  accurate  statistical  return,  others,  for  obvious 
reasons,  withhold  information,  while  the  value  of  the  usual 
methods  of  estimating  production  and  consumption  has  been 
greatly  vitiated  by  the  operation  of  war-time  conditions  and 
"the  imposition  of  multifarious  Government  restrictions  and 
enactments.  In  the  face  of  all  this,  the  reports  of  the  Interna- 
tional Agricultural  Institute  at  Rome  are  achievements  of  no 
mean  degree.  No  one  who  appreciates  the  labour  and  difficulty 
of  work  of  this  character,  and  the  care  and  thought  required  to 
frame  the  various  estimates,  can  but  feel  that  not  only  the 
agricultural,  but  the  financial  and  commercial  community,  are 
under  no  inconsiderable  obligation  to  the  compilers  of  these 
instructive  statistical  reports. 

The  definite  scope  of  the  statistical  notes  is  ttie  ascertaining" 
of,  on  the  one  hand,  the  cereal  requirements,  and,  on  the  other, 
how  far  the  world  is  in  possession  of  the  means  of  satisfying 
these  requirements.  The  term  '■  world  "  is  ralher  a  misnomer, 
for  obviously  the  Central  Powers  and  their  deluded  adherents 
luruish  no  figures.  Russia's  statistics  for  1917  are  unknown, 
and  in  the  return  for  the  Southern  Hemisphere  Chile's  figures 
are  not  included.  In  the  absence  of  any  reliable  data  to  go  upon 
no  attempt  has  wisely  been  made  to  estimate  production  and 
consumption  figures  for  these  countries,  and  they  do  not,  there- 
fore, contribute  their  quota  to  the  return.  In  considering  the 
yield  the  world's  crops  are  divided  into  two  main  groups,  those 
of  the  Northern  and  those  of  the  Southern  Hemisphere.  This 
is  because  the  first  group  are  harvested  within  one  calendar 
year,  while  the  second  overlaps  into  two   of   such   years. 

Comparison  is  made  with  the  crop  of  the  previous  season,  with 
the  average  of  three  previous  years,  and  with  the  average  of  the 
five  pre-war  years  ended  1913-  From  the  point  of  view  of  pro- 
ductive etHciency  the  agricultural  industry  has,  of  course, 
fiuffered  much  from  war  conditions.  Labour  has  been  scarce*. 
■  and  dear,  and  much  of  it  unskilful.  Fertilisers  have  ■been  very  • 
expensive,  and  in  deficient  supply,  while  there  has  been  a  great 
rise  in  the  price  of  seed.  These  and  many  other  hindrances 
have  tended  greatly  to  interfere  with  production,  and  in  spite 
of  the  fact  that  prices  have  soared  to  extraordinary  heights,  the 
total  yield  of  wheat  for  the  calendar  year  1917  and  the  Southern 
Hemisphere  year  1916-1917  was  considerably  below  that  of 
previous  years.  The  wheat  yield  for  Great  Britain  and  Ireland 
is  returned  at  17  million  quintals  compared  with  16  million  for 
1916,  17,800,000  quintals,  the  average  for  the  three  war  years, 
and  16  million  quintals,  the  average  of  the  five  pre-war  }'ears. 
British  India  contributes  103  million  quintals,  as  again.st  86 
million  quintals  for  1916,  ot  million  quintals  for  the  three- 
year  average,  and  05  million  quintals  for  the  five  pre-war  year 
average,  but  th;  United  States  harvested  only  179  million  quin- 
tals, as  against  a  three  war  yeir  average  of  231  million  quintals, 
and  a  five  pre-war  year  average  of  i85  million  quintals.  The 
yield  of  France- -excluding  that  of  occupied  territory — declined 
from  a  five  pre-war  year  average  of  86  million  quintals,  a  three- 
year  war  average  of  64  million  quintals,  and  a  1916  outturn  of 
i;q  million  quintals  to  only  39  million  quintals  for  1017.  Italy 
figures  only  for  38  million  quintals  compared  with  a  three- 
year  war  average  of  46  million,  and  a  normal  average  of  50 
"iillion  quintals.  Canada  produced  63  million  quintals,  a  yield 
which,  although  S  million  quintals  below  that  of  I9'6.  and 
14  million  quintals  below  the  three  war  year  average,  was  S 
million  quintals  in  excess  of  the  five  pre-war  year  average. 


Jtxr.  I,  1 918. 


^be  3nvc8tov6'  IRcview. 


r    I 


525 


In  tlie  Southern  Hemisphere  there  was  a  very  poor  yield  in 
that  of  the  Argentine.  It  only  amounted  to  iq  million  quintals, 
whereas  for  191516  there  was  a  harvest  of  46  million  quintals, 
■and  for  the  three  war  year  average,  and  the  five  pre-war  year 
average  40  million  quintals  in  each  case.  Australia,  although 
some  25  million  quintals  above  the  three  war  and  five  pre-war 
year  averages  was,  at  41  million  quintals,  7  million  quintals 
below  the  yield  of  i()i5.  Adding  miscellaneous  countries,  the 
aggregate  yield  for  both  hemispheres  comes  out  as  follows  : — 
1917  and  1916-17,  =74  million  quintals,  1916  and  1915-16,  629 
million  quintals;  three  war  year  average  ended  igib,  675  mil- 
lion quintals  ;  five  pre-war  year  average,  629  million  quintals.  In 
considering  the  question  of  consumption,  a  number  of  factors 
present  themselves.  Taking;  first  those  of  the  restrictive  class, 
there  is  the  great  rise  in  price;  the  reduction  in  the  production 
of  manufactured  articles  in  which  tereals  form  a  raw  material; 
the  depopulation  of  some  countries-  or  regions  on  account  of 
military  operations  or  occupation;  the  displacement  of  large 
bodies  of  troops  who  have  left  their  own  country  to  serve  in 
foreign  lands;  sundry  legislative  measures  adopted'  to  limit 
consumption,  including  definite  restrictions  as  to  quantity  of 
cereals  for  each  person  and  regulations  providing  that  an 
increased  proportion  of  flour  shall  be  extracted  by  the  miller  from 
the  wheat. 

The  economy  arising  from  this  restriction  is  estimated  at  about 
20  per  cent,  of  the  normal  quantity  of  grain  consumed,  but  it  is 
scarcely  possible  yet  to  appreciate  the  infiuence  of  these  mea- 
sures at  their  proper  value.  Among  factors  tending  to  increase 
consumption  is  the  considerable  advance  in  the  price  of  meat, 
eggs,  &c.,  compelling  the  mass  of  the  people  to  eat  more 
bread  and  farinaceous  food  ;  the  increase  in  purchasing  power  ; 
the  clearly  larger  requirements  of  the  men  who  are  mobilised  ; 
the  movement  of  population  from  invaded  districts ;  and  a 
certain  amount  of  hoatding  which  has  gone  on  in  the  various 
countries.  Sundry  Governments  have  thought  well  to  frame 
estimates  of  their  consumption  from  August,  1917,  to  July, 
1918.  In  some  other  instances  rationment  forms  a  sufficient 
basis  for  an  estimate  of  probable  consumption.  Added  to  the 
Institute's  totals,  however,  there  is  prudently  some  percentage 
of  margin  to  cover  contingencies  which  cannot  be  accuratelv 
foreseen.  In  the  nb.sence  of  one  or- other  of  these  systems  as  a 
basis  for  estimates,  recourse  is  made  to  (he  method  hitherto 
adopted,  which  consists  in  taking  past  consumption  for  esti- 
mating that  of  the  future.  Thus,  where  necessary,  figures  are 
based  upon  the  average  consumption  of  the  three  war  years, 
1914-15,  1915.16,  and  1916-17. 

Among  countries  with  an  estimated  consumption  greatly  In 
excess  of  the  yield,  Great  liritain  naturally  occupies  leading 
place,  with  an  estimated  total  coneunipiion  of  71  million 
quintals,  and  a  deficiency  of  49  million  (|uintals  to  make  up 
by  imports.  France  is  not  far  behind,  for  the  total  estimated 
consumption  of  86  million  quintals  surpasses  the  yield  by 
46  million  quintals.  The  next  great  whe:it-importing  country 
is  Italy,  whose  consumption,  67  million  quintals,  exceeds  the 
yield  by  29  million  quintals.  Adding  the  totals  of  the  less 
important  countries,  the  aggregate  deficiency  for  1917-18,  in 
both  Northern  and  Southern  hemispheres  of  those  countries 
whose  consumption  figures  are  in  excess  of  yield,  comes  out 
at  144  million  quintals.  This  does  not  include,  however,  the 
estimated  deficiency  of  a  considerable  number  of  small  coun- 
tries able  to  import,  from  whom  returns  or  complete  returns 
•re  not  available.  Estimating  this  aggregate  deficiency  at  22 
million  quintals,  our  aggregate  requirements  of  importing  coun- 
tries come  up  to  166  million  quintals. 

Against  this,  however,  there  is  to  be  offset  the  surplus  of 
those  countries  where  the  yield  of  wlieat  exceeded  consump- 
tive requirements.  In  this  category  tomes  Canada,  with  an 
estimated  surplus  of  42  million  quintals,  and  Australia,  with  an 
«xcess  yield  of  38  million  quintals.  There  is  rn  estim.ated 
surplus  for  the  United  States  of  20  million  quintals,  while 
British  India  is  not  far  behind  with  an  estimated  surplus  of 
19  million  quintals.  Altogether,  the  estimated  surpluses  for  both 
hemispheres  aggregate  123  million  quintals,  some  43  million 
quintals  short  of  requirements.  In  our  consideration  of  the 
position,  however,  allowance  should  be  made  for  the  fact  that 
the  Argentine  191 7-18  exportable  wheat  surplus  prornises  to 
be  enormously  in  excess  of  that  of  a  year  ago — a  circumstance 
it  is  only  proper  to  take  into  account.  According  to  the  pre- 
liminary figures,  the  yield  for  1917-18  will  am.ount,  in  round 
figures,  to  60  million  quintals.  If  we  assume  a  total  consump- 
tion, including  seed  requirements,  of  18  million  quintals,  there 
■would  be  an  export  surplus  of  42  million  quintals — a  figure 
which,  if  realised,  would  almost  niake  up  the  present  world 
deficiency.  In  the  foregoing  we  have  dealt  exclusively  with 
the  wheat  position  ;  barley,  oats,  and  ntaize  have  not  been  taken 
into  account.  In  the  ordinary  way,  it  would  not  appear  cor- 
rect simply  to  add  together  totals  comprising  products  of  diverse 
properties,  such  as  foodstuffs  and  fodder,  since  nutritive  values 
and  modes  of  employment  differ  so  widely.  At  the  present 
time,  however,  laws  or  decrees  have  been  enacted  in  most  of 
the  countries  enjoining  the  admixture  of  products  of  the  fodder 
cereals  with  wheat  flour,  so  that  we  may,  perhaps,  be  justified 
in  taking  them  into  account.  The  estimated  surplus  of  maize 
is  115  million  quintals,  and  that  of  oats  47  million  quintals. 
This  would  bring  the  aggregate  estimated  surplus  of  foodstuffs 
and  fodder  up  to  some  160  million  quintals.  From  this  it 
tppcars  that  the  supply  of  cereals  for  the  year  ended  July  next 
is  likely  to  he  in  excess  of  consumptive  requirements.  Satis- 
factory as  this  is,  however,  we  must  not  deceive  ourselves.  If 
there  is  a  superabundance  of  cereals  in  existence,  the  supplies 


are  situate  at  points  far  distant  from  the  great  consuming 
centres,  and  the  dearth  of  shipping  remains.  We  must,  there- 
fore, use  every  endeavour  to  keep  down  consumption  to  the 
lowest  possible  point,  and  to  encourage  the  production  of 
cereals  in   the  United  Kingdom. 


By-the-Way  War  Notes. 

THUHSD.U'   Mohnino. 

The  fresh  German  offensive  began  on  Monday,  and  has  been 
marked  by  all  the  usual  characteristics  of  such.  When  Belgian 
neutrality  was  violated  in  1914  by  hordes  of  insolent  German 
soldiers  victory  was  counted  certain,  and  dates  were  assigned 
for  the  theatrical  entry  of  William  HohenzoUern  at  the  head  of 
his  ornamental  household  cavalry  into  Paris.  And  for  three 
weeks  the  Germans  swept  all  before  them.  Within  a  month  the 
Battle  of  the  Marne  foiled  these  hopes,  but  did  not  lessen  the 
defeated  invaders'  pride.  So  attuned  have  Prussian  minds 
been  to  the  idea  that  Germans  alone  are  worthy  to  rule  and 
capable  of  conquering  that  on  each  succeeding  effort,  and  suc- 
ceeding defeat,  the  same  ghoulish  vision  has  been  spread  before 
their  eyes,  and  with  the  same  result.  The  gullible,  drilled 
serfs,  .seemingly  incapable  of  reasoning  or  of  honest  thought, 
have  accepted  the  yarn  about  victory,  immediate  and  final,  as 
true  prophecy. 

Is  it  going  to  be  different  this  time  from  what  it  has  been 
in  all  the  assaults  hitherto,  in  the  various  attempts  to  drive 
through  to  the  Channel  ports,  in  the  prolonged  assaults  upon 
Verdun,  and  in  all  the  desperate  fighting  across  Champagne? 
Except  that  the  Germans  must  be  less  confident,  we  cannot  .sea 
that  it  is,  and  it  is  a  pity  that  pessimistic  notions  become  so 
prevalent  among  us  at  home  and  with  .such  promptitude. 
Because  the  Germans  by  massing  overwhelming  numbers  of 
troops  and  an  equally  crushing  weight  of  artillery  at  a  chosen 
point  in  the  long  front  have  been  able  in  three  days  to  push 
back  the  Anglo-French  lines  15  miles  and  to  get  into  Soissons, 
it  does  not  follow  that  we  are  defeated  or  anywhere  near  defeat. 
But  people  are  saying  that  our  troops  were  surprised,  and  that 
our  front  lines  were  too  thinly  held  "as  usual."  Doubtless 
there  was  something  of  surprise  at  the  point  selected  for  the 
as.sault,  but  how  could  that  be  avoided?  Consider  the  length 
of  line  held,  the  hundreds  of  miles  of  twisting  trenclies  which 
have  to  be  watched,  and  then  try  to  imagine  how  it  ctpuld  be 
possible  to  prevent  sudden  attacks  at  'uniooked-for  points  on 
these  lines.  The  entire  population  of  France  and  Great  Britain 
if  set  to  watch  would  hardly  suffice  to  guarantee  us  against 
"  surprise"  at  some  spot. 

And  in  regard  to  the  numbers  in  the  front  trenches,  do  the 
public   who   talk  so   glibly  in  censure    of    our    military  com- 


New  Zealand. 


A  Wealthy  Country,  Splendid  Climate,  Fertile 
Soil,  Plenty  of  Water. 

An  Ideal  Country  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  populatioa,  has  an 
annual  export  of  raw  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IBON,  TIMBEB, 
GUM,  GOLD  AND  SILVER.  Total  yield  of  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  have  been  advanced 
byGovemmentto  Farmers  and  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 
The  Railways,  3,000  miles.  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State. 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  new 
country.  New  Zealand  offers  solid  advantages. 
Excellent  Steamship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Sliipping  Company, 
Limited,  and  the  Federal  and  Shire  Lines. 


Full  information  is  supplied  free  by 

THE  HIGH  COMMISSIONER  FOB  NEW  ZEALAND. 

413-416,  STRAND,  W.C.  2. 


526 


'(The  5nvestor8'  IReview, 


Just  I,  1918. 


mandrrs  (ui'  their  unpreparedness  ever  realise  what  an  agonis- 
ing strain  the  holding  of  the  foremost  lines  must  be  to  the 
troops  in  the  present  war/  Every  species  of  artillery  that  the 
diabolical  ingenuity  of  the  German  has  invented  is  turned  on 
upon  these  front  trenches,  and  when  the  shrapnel  and  bombs 
charged  with  high  explosives  fail  to  destroy  the  troops 
sheltering  in  them  liquid  fire  and  poisonous  gas  are  rained  down 
iipon  them  from  beyond  the  trenches  or  from  the  skies.  They 
live  in  a  hell  alive  with  the  engines  of  destruction,  and  the 
marvel  to  us  has  always  been  how  any  of  the  men  escape. 
Would  any  commander  who  had  the  slightest  regard  for  the 
lives  of  his  fellow-men,  or  who  realised  in  any  degree  the  neces- 
sity from  a  national  point  of  view  of  doing  the  utmost  to  con- 
serve our  manhood,  fill  these  front  trenches  with  masses  of  men 
to  wait  and  wait  for  an  assault  day  after  day  and  week  after 
week,  meanwhile  being  destroyed  by  the  enemy's  artillery? 
Clearly,  no.  The  commander  who  followed  such  tactics  would 
deserve  to  be  shot.  His  dominant  solicitude  must  be  how  to 
Wd  on  with  the  fewest  possible  men. 

From  the  point  of  view  of  actual  war  conditions  there  i5 
nothing  at  all  to  be  surprised  at  in  the  initial  success  which 
has  generally  attended  the  long  and  carefully  prepared  for  first 
overwhelming  assaults  of  the  enemy  upon  our  lines,  and  there 
is  nothing  indicative  of  coming  defeat  in  our  retreat  now  any 
more  than  in  March  last  or  than  in  August,  1914.  The  battle 
has  only  begun,  and  the  mad  Hohenzollern  Kaiser  alone  is  cap- 
able of  bawling  "  Victory  !  victory  !  triumph  !  God  is  on  my 
side,"  before  the  real  battle  is  joined.  It  gives  us  confidence  to 
behold  the  miserable  creature  yelling  and  spluttering 
blasphemies  thus  while  consigning  young  and  old  of  his  subjects 
to  death  in  thousands  every  hour.  Let  us,  then,  maintain 
our  calmness  of  mind.  There  is  danger,  always  must  be  in 
battle,  and  the  time  is  critical,  for  we  know  not  what  the  Prus- 
sian recklessness  of  German  lives  will  prompt  them  to  do  as 
murderers  in  their  despair.  It  is  for  William  and  his  proud 
Prussians  victory  or  irretrievable  ruin  this  time,  and  the  last 
available  man  of  Germany's  youth  will  be  sacrificed  to  try  to 
secure  this  victory  for  the  dominant  caste  and  its  financiers, 
even  though  the  sacrifice  might  involve  a  ruin  of  Prussian 
hopes  complete  and  overwhelming  enough  to  obliterate  the 
German  race  as  a  "  great  Power  "  for  ever.  It  is  obliterated 
already,  as  many  in  Germany  begin  to  discern,  and  a  suspicion 
of  the  ruin  must  have  penetrated  even  the  Junker  brain.  All 
the  more  reckless  the  onslaughts. 

We  shall  have  to  fight  bitterly,  without  ceasing,  and  pro- 
bably the  turning  point  in  the  battle  is  not  yet  near  at  hand. 
But  it  will  be  reached  one  of  these  days,  and  before  so  very  long, 
just  because  the  Prussians  are  using  up  their  human  "  gun- 
fodder  "  with  a  fury  so  abandoned.  Soon  we  shall  have 
superiority  in  numbers  on  the  long  field  of  battle,  superiority 
in  artillery  likewise,  and  all  through  we  have  had  superiority 
in  the  spirit  and  moral  of  the  troops,  as  witness  our  air 
service,  which  dominates  the  enemy  on  all  fronts.  A  heroic 
defence  is  being  maintained  by  the  Allied  armies  every  hour 
of  the  day  and  night  on  the  front  between  Soissons  and 
Rheims  everywhere,  and  the  German  manhood,  from  youths  of 
18  or  less  to  men  verging  on  old  age,  are  being  mown  down  by 
the  Allied  troops  far  more  rapidly  than  our  men  are.  We  know 
this  because  the  attacking  armies  have  from  five  to  seven  or 
eight,  or  even  ten,  times  the  strength  of  ours  at  most  of  the 
( fleeted  points  of  attack.  Only  by  such  preponderance  can  the 
ijisheartened  troops  probably  be  persuaded  to  advance  to  the 
yssault. 

This  kind  of  recklessness  in  flinging  a  nation's  life  away 
cannot  last  much  longer.  It  is  sheer  desperation  that  drives 
the  Prussians  to  make  the  sacrifice  with  their  usual  Oriental 
indifference  to  human  life.  They  must  know  they  are  doomed, 
and  fight  with  the  abandon  of  the  bully  at  bay  and  in  fear. 
We  have  but  to  wait,  therefore,  and  to  hold  on,  steadfast, 
killing,  meanwhile,  as  many  as  we  can  on  every  opportunity, 
to   see  the  crisis  pass   and  the   tide  turn. 

Germany,  remember,  is  not  able  even  now  to  put  all  her 
strength  into  this  great  battle  of  the  West.  Her  loutish 
management  of  affairs  on  other  battle  fronts,  the  increasing 
impotence  and  disorganisation  of  the  Austro-Hungarian<  Em- 
pire, the  exhaustion  of  the  Bulgar  and  the  Turk,  together 
with  the  usual  Teutonic  brutality  of  treatment  meted  out  to 
the  populations  of  overrun  Kussia,  of  throttled  Rumania,  of 
Poland  gagged  and  bound,  are  all  compelling  the  Hohen- 
zollern war  leaders  to  maintain  large  contingents  of  troops 
in  other  centres  of  conflict.  The  Hohenzollern  "peace"  is 
everywhere  the  peace  of  the  man  down  with  the  despoiler  sit- 
ting on  his  chest  rifling  his  pockets.  They  must  hold  down, 
shoot,  rob,  and  intimidate,  or  else  see  their  plans  everywhere 
disarranged,  the  Allies  welcomed  by  the  oppressed  as  de- 
liverers, and  the  way  opened  to  attack  the  eviscerated  Cen- 
tral Empires  in  the  rear. 

So  people  must  not  lose  heart,  and,  above  all,  they  ought 
to  refuse  to  be  too  much  swayed  by  the  news  of  retreats. 
Remember  the  retreat  from  Mons  and  Charleroi  in  August, 
1914.  At  times  we  thought  all  was  lost  then,  and  that  the 
Germans  would  fulfil  their  braggart  programme  :  be  in  Paris 
by  mid-September.  Much  has  happened  since  then,  and  they 
have  not  reached  Paris  yet,  except  by  a  long-range  gun — the 
cowardly   fiends. 

We  should  realise  by  now  that  it  is  a  whole  race  we  are 
fighting  against,  and  which  we  have  to  destroy.  We  shall 
do  that,  sure  enough,  melancholy  though  the  task  is,  and  the 
longer  the  war  is  prolonged  by  the  obstinate  pride  of  the 
Prussian  beast  the  more  thoroughly  will  the  destruction  be 
accomplished.      Than   that    nothing   can    be  more   sure.      For 


America  stands  by  our  side  now,  and  is  doing  right  vali- 
antly. Her  troops  are  as  a  great  reserve  behind  a  sorely-tried 
fighting  front  of  the  French,  Belgians,  Italian.s,  and  British, 
and  the  German  push  forward  will  now  avail  nothing  against 
the  weary  nations  united  to  resist  them,  because  America  can 
even  much  more  than  make  good  our  waste. 

Various  minor  incidents  of  the  week  may  deserve  a  word. 
Some  people  are  grumbling  that  our  Government  should  have 
acceded  to  the  request  of  the  Catholic  Archbishop  of  Cologne 
to  abstain  from  casting  bombs  on  that  city  on  Corpus  Christi 
day,  but  it  was  possibly  the  right  and  humane  thing  to  do, 
although  the  only  thanks  we  shall  get  from  the  Prussian  mili- 
tary fiends  who  now  trample  all  humane  sentiments  under 
foot,  even  in  the  Germans  themselves,  may  be  another 
murderous  bombardment  of  hospitals  in  the  rear  of  the  Allied 
lines,  involving  the  death  and  wounding  of  nurses,  and  pro- 
bably many  other  casualties  among  patients.  The  horror 
deepens  of  the  bombardment  of  our  hospitals  at  Etaples,  men- 
tioned last  week,  the  more  we  hear  of  it,  and  even  the  Ger- 
man wounded  patients  in  these  hospitals  seem  to  have  been 
exc;jted  to  frenzy  against  their  fellow  countrymen.  Pity  that 
frenzy  does  not  sp;;ead  through  the  German  army.  It  might, 
even  at  this  late  day,  rescue  the  German  people  from  the  worst 
of  their  doom. 

It  was  unfortunate  that  the  Prime  Minister's  recent  bragga- 
docio (German  model)  about  our  triumph  over  the  German 
submarine  should  have  apf<eared  simultaneously  with  the 
news  that  an  American  transport  had  been  torpedoed  with  the 
loss  of  nearly  60  of  those  on  board,  and  we  this  week  have 
lost  another  transport  and  104  lives  in  the  Mediterranean,  which 
is  now  the  region  of  most  danger  to  commerce.  But  that  sea 
probably  lay  outside  Mr.  George's  survey.  And  he  can  put 
against  unseasonable  incidents  of  that  sort  our  sinking  of 
a  monster  (5,000  tons)  German  submarine  with  all  hands. 
We  are  getting  on. 

Friday  Morniiig. — Something  like  dread  sometimes  comes 
over  the  mind  in  reading  the  descriptions  of  the  demoniac  battla 
now  raging  in  France  and  Flanders.  It  is  >o  appalling  in  its 
fury,  in  the  masses  of  German  men,  and  in  the  employment  of 
the  variety  of  engines  of  destruction  brought  into  us©  with  sucJi 
brutal  ingenuity  that  one  wonders  how  human  nature,  no  matter 
how  heroic  it  may  be,  is  capable  of  enduring  it.  But  our  troops 
are  enduring,  and  in  many  places  holding  their  ground,  in 
spite  of  the  destructive  agencies  brought  against  them,  and  of 
being  outnumbered  by  five  to  one  or  more.  So  the  news  this 
Friday  morning  seems  indicative  that  the  plague  is  beginning 
to  be  stayed.  It  is  not  the  end  yet,  nor  perhaps  even  the  cul- 
minating point,  but  the  Germans  are  still  30  miles  fr^  m  tho 
Marne,  where  they  met  their  punishment  in  September.  1914, 
and  every  hour  increases  flie  resistance  of  the  French  troops 
and  our  own.  Moreover,  the  assault  cannot  be  very  far  from 
its  maximum,  because  it  is  so  insanely  furiou?.  Day  and  night 
German  troops  are  being  flung  into  the  mel^e,  to  be  pounded  to 
pieces,  and  the  rate  of  wastage  cannot  last  very  much  longer. 
That  it  should  be  persisted  in  now  regardless  of  all  conse- 
quences is  itself  manifest  proof  that  the  condition  of  Germany 
is  getting  so  critical  that  the  military  ruffians  who  are  hustling 
the  empire  to  its  ruin  cannot  afford  to  wait. 

But  if  checked  in  the  present  rush  between  Soissons  and 
Rheims,  it  is  probable  that  plunges  will  be  made  at  other 
points  on  the  front.  We  may  very  likely  have  other  surprises 
and  fresh  recoils  to  endure,  so  we  have  to  be  vigilant  and 
patient  and  of  good  courage.  Every  day  the  American  help 
becomes  more  effective. 

Another  sign  that  all  is  not  as  it  is  made  to  appear  in  Ger- 
many is  the  German  bulletins  about  their  captured  booty. 
These  are  redolent  of  unassuaged  hunger.  We  know  they  can- 
not be  true,  because  there  was  no  disorder  as  in  March  last  in 
the  French  or  British  retreat,  and  in  most  cases  the  material  of 
war  captured  was  rendered  useless  if  not  wholly  destroyed 
before  it  was  abandoned.  But  Germany  is  so  hunger-consumed 
that  it  will  be  a  sort  of  consolation  to  the  miserable  wretches 
left  there  under  the  Prussian  heel  to  think  that  their  relatives 
at  the  front  are  now  being  fed  with  the  provisions  of  theenemy. 
It  is  bounce,  exaggeration,  lying  and  truculence  throughout. 

It  is  worth  noting,  surelj',  by  our  Government,  some  mem- 
bers of  which  are  still  actively  pro-Prussian  in  their  svmpathit  = 
whenever  they  get  the  opportunity,  that  the  characteristic  Ger 
nnn  acknowledgment  of  our  humanitarian  consideration  in  a!j- 
staining  from  bombing  Cologne  or  other  German  towns  on 
Corpus  Christi  Day,  was  an  intensified  bombardment  of  Paris 
with  that  monster  long-range  gun.  And  are  not  the  attacks  on 
hospitals  ruthlessly  persi.sted  in  something  for  the  German?  to 
be  proud  of,  proof  of  their  force  and  humanity  ! 


Insurance    News. 

All  departments  of  the  Guardian  Assurance  Company  did 
well  in  1917.  There  was  an  increase  of  ;f5i,o?o  to  /618,82s  in 
the  nett  new  life  business,  and  while  the  number  of  the  claims 
came  out  slightly  above  the  expectation,  their  amount  was  some- 
what below  that  expected.  Nett  fire  premiums  at  ^763, 781 
showed  an  expansion  of  £,%-j,9>%^,  the  nett  losses  at  /33i,6o8,  or 
43.41  per  cent,  of  the  premiums,  being  only  ;^i,84i  larger  than 
in  the  previous  5'ear.  The  total  profit  was  pf  115,467,  against 
^^103,156.  There  was  an  increase  of  /33.Q95  to  ;f270,225  in 
the  nett  premiums  received  in  the  accident  and  general  section, 
the  claims  being  ;^i04,i79  (37.31  per  cent,  of  the  premiums), 
against  /94,i46.  The  dividend  for  the  year  is  made  up  to 
63.  a  share  on  the  reorganised  capital. 

An    application   by   the  liquidators    of    the    Law    Guarantee 


jLNE 


I918. 


TLbc  Jnvestors'  IReview. 


527 


Trust  and  Accident  Society  for  leave  to  call  meetings  of  credi- 
tors has  been  granted  by  the  Court.  The  object  of  the  meetings 
is  to  extend  the  time  for  closing  the  affairs  of  the  company,  as 
arranged  by  the  scheme  of  1910.  It  was  ^.tated  that  no  further 
meeting  of  shareholders  would  be  necessary,  it  being  clear  that 
there  would  be  nothing  coming  to  them.  The  liquidators  have 
distributed  a  good  deal  of  the  assets,  but  there  is  a  large  num- 
ber of  possible  claims  on  contingency  policies  and  mortgages  and 
debentures  that  had  been  guaranteed.  Owing  to  the  war,  and 
legislation  due  to  the  war,  it  is  undesirable  that  the  liquidators 
should  be  obliged  to  meet  these  at  the  present  time. 

Particulars  of  a  special  war-time  policy  are  announced  by  the 
Scottish  Widows'  Fund  Life  Assurance  Society,  which  should 
be  useful  to  many  who,  desiring  ordinary  life  assurance,  are 
liable  to  military  service.  Instead  of  issuing  policies  under 
which  the  risk  of  naval  and  military  service  would  be  covered 
on  payment  of  an  extra  premium,  which  would  necessarily  be 
very  high,  and  in  most  cases  prohibitive,  the  society  offers  a 
policy  containing  special  clauses. 

In  common  with  other  life  offices  having  large  invested  funds, 
the  General  Life  Assurance  Compan}^  has  suffered  from  the  de- 
preciation in  values  of  securities  of  the  highest  class.  The 
valuation  for  the  five  years  to  December  31  disclosed  a  surplus 
of  ^1^164,292,  but  owing  to  depreciation  ;^'3o,469  of  this  surplus 
has  been  transferred  to  the  investment  reserve,  raising  it  to 
^'264,000,  and  leaving  a  balance  of  £33,8^3,  which  is  carried 
forward.  Shareholders,  however,  will  receive  the  usual  10  per 
cent,  dividend  to  be  paid  out  of  the  sum  at  credit  of  the  pro- 
prietors' fund,  being  the  unexpended  balance  earned  at  the 
end  of  1912.  During  1917  the  claims  were  less  by  ;,f25,498  than 
had  been  provided  for.  At  the  close  of  the  year  the  funds 
amounted  to  ^^2,061, 489 — an  increase  of  ;^9,o93.  Interest  at 
the  rate  of  ^4  3s.  8d.  per  cent.,  against  £3  iSs.  tod.  per  cent, 
in  1916,   was  realised  on  the  investments  as  a  whole. 

Kemarkable  progress  was  made  by  the  City  Equitable  Fire 
Insurance  Company  last  year,  the  expansion  being  particularly 
marked  in  marine  business,  the'^narine  and  war  premiums  at 
;^74o,o38  showing  an  increase  of  no  less  than  .:£'479,549.  The 
company  is  holding  ;^36o,868  against  unexpired  risks,  or  about 
50  per  cent.  There  was  an  increase  of  ^^  100,606  to  ;^4s8,375 
in  the  fire  premiums,  while  the  total  amount  of  all  claims  paid 
and  outstanding  was  only  ^9,799  higher  at  ^229,843,  the  loss 
ratio  having  dropped  to  50.14  per  cent.,  due  partly  to  the  new 
business  on  which  losses  have  not  had  time  to  mature.  This 
year  the  directors  have  omitted  the  Russian  business  from  the 
accounts.  Including  ^^21,425  income  from  investments  (as 
against  £10,030),  the  total  profit  was  ;fi28,25i,  or  ^^62,756  more, 
and  ;ifi8,74o  was  brought  in,  making  ;^i46,99i.  Against  this  is 
charged  ;^2o,504,  representing  the  difference  in  the  company's 
favour  on  the  Russian  account,  but  which,  in  view  of  the 
uncertainties  attaching  to  the  entire  position,  the  directors 
have  decided  provisionally  to  write  off,  treating  the  whole  of 
the  Russian  business  as  in  suspense.  The  dividends  for  the 
year  are  made  up  to  is.  a  share  on  the  preference,  and  4s.  a 
share  on  the  ordinary  shares,  a  small  increase  on  last  year ; 
reserves  have  been  strengthened  to  the  extent  of  ^^67,000,  and 
;^7,i37  is  carried  forward.  Investments  at  ^^336,989  show  an 
increase  of  £iy2,()68. 

The  Phanix  Assurance  Co.  did  an  increased  business  in  all 
departments  during  1917,  and  profits  were  larger  than  in  1916. 
Nett  fire  premiums  were  ;^i77,448  higher  at  .^1,709,312,  the 
loss  ratio  declined  from  48.9  per  cent,  to  47.6  per  cent  of  the 
premiums,  and  commission  and  expenses  absorbed  38  per  cent, 
as  compared  with  39  per  cent.,  the  total  outgo  being  ;f  1,461,914 
as  against  £1,346,133-  After  increasing  the  fire  funds  by 
j<r7i,ooo  (against  ji'50,000)  to  ;^2,o7i,ooo  the  profit  was  ^'40,666 
higher,  and  ^^^235,436,  or  ^^46,562  more  than  in  the  previous 
year,  was  transferred  to  profit  and  loss.  Nett  premiums  in  the 
marine  branch  increased  by  ^1,042,363  to  ;,f 2,411,564,  claims 
on  'account  of  191 7  were  ;^376,95i  heavier  at  .^899,833,  and  on 
account  of  previous  years  ;^  143,034  more  at  ^489,984.  The 
profit  was  ^35,000  larger  at  /i85,ooo,  the  sum  of  ^224,772,  or 
;^37,302  more,  being  transferred  to  profit  and  loss,  while  the 
marine  funds  were  increased  by  jf 643,910  to  ^f,693,444.  A 
profit  of  ;^  18,005  was  made  from  the  accident  business.  The 
life  business  also  showed  satisfactory  results,  the  nett  new  assur- 
ances retained  at  ^f  1,123,5 11  being  ;,/' 103,028  more  than  in 
1916.  Notwithstanding  the  inclusion  of  2^ 70,530  war  claims 
the  total  amount  paid,  namely,  ;!f63i,756  arising  by  the  death 
of  721  persons,  was  within  the  normal  expectation;  a  further 
;;7r57,6i6  was  paid  in  respect  of  endowments.  At  the  close  of 
the  year  the  life  funds  stood  at  ^10,916,222,  an  increase  of 
£i35'3^i-  The  total  profits  were  ;,f73,6i2  higher  at  ;^379,4ii, 
in  addition  to  ^161,594  for  interest,  out  of  which  ;^i4o,ooo,  ot 
j^ 54,000  more,  was  required  in  writing  down  securities-.  After 
providing  ^^230, 150  for  income-tax  and  e.Kcess  protfis  duty  the 
balance  forward  was  ..f  1,317  more  at  ^'263, 266.  The  total  divi- 
dend in  respect  of  1917  is  to  be  raised  to  9s.  a  share;  in  each 
of  the  last  five  years  8s.  a  share  was  paid.  So  far  8s.  6d.  a 
share  has  been  distributed  ;  the  balance  of  6d.  a  share  as  a  final 
dividend  is  to  be  paid  in  November  by  way  of  an  increase  to 
such  interim  dividend  as  may  then  be  declared. 


Our   Disabled  Men. 

Mr.  Hodge,  the  Minister  of  Pensions,  had  some  very 
interesting  things  to  tell  the  House  when  it  reassembled 
on  Tuesday  evening  about  the  working  of  his  depart- 
ment. When  he  succeeded  Mr.  Barnes  his  staff  num- 
bered   3,700,    and    to-day    it   numbers    6,200.      This    is   not    an 


undue  expansion,  in  view  of  the  increase  in  the  number  of 
claimants  for  pensions  to  be  dealt  with.  These  now  show  an 
average  of  something  like  15,000  a  week,  and  it  is  a  very 
formidable  undertaking  to  deal  fairly  and  promptly  with  such 
numbers  of  people.  All  sorts  of  schemes  have  to  be  enter- 
tained, and,  if  possible,  put  in  execution,  so  as  to  help  the 
disabled,  and,  by  training  them  and  equipping  them,  it  may 
bo,  lessen  the  obligations  of  the  community  for  their  main- 
tenance in  time  to  come. 

Colonel  Ashley  remarked  that  pensions  after  the  war  would 
proTjably  run  to  ;f  100,000,000  per  annum.  They  already  run 
to  nearly  ^^  50,000,000  and  may  soon  exceed  ;^ 60,000,000.  No 
one  grudges  the  money — provided  we  can  find  it ;  but  the  danger 
of  all  these  efforts  is  that  the  generosity  with  which  the  Govern- 
ment answers  appeals  for  liberal  treatment  may  land  us 
in  an  impasse,  without  the  means  to  make  good  our 
promises.  Therefore  the  more  that  can  be  done  now  to 
put  the  pensioners  in  the  way  to  produce  instead  of  merely 
to  consume  wealth,  the  better,  and  Mr.  Hodge  betrays 'a 
thorough  familiarity  with  the  scope  of  the  problem  before  him. 
He  said  he  had  been  accused  of  going  about  the  country 
making  speeches  instead  of  attending  to  his  work,  but  that  is 
only  the  mud-throwing  of  the  gutter  Press.  As  a  matter  of 
fact,  that  kind  of  speech-making  with  him  seems  to  take  the 
place  of .  the  ordinary  citizen's  "week-end  in  the  country," 
and  the  minister's  journeyings  here  and  there  are  neces- 
sary to  get  and  keep  him  in  touch  with  local  conditions,  senti- 
ments, and  purposes,  so  that  all  may  be  satisfied.  Up  to  the 
end  of  April,  to  give  a  few  statistics,  the  number  of  disabled 
men  who  had  received  pensions  was  341,025,  and  of  these  2.8 
per  cent,  suffered  from  slight  injuries,  2.6  per  cent,  from 
wounds  and  injuries  to  legs  requiring  amputation,  11.9  per 
cent,  from  wounds  and  injuries  to  arms  that  did  not  require 
to  be  cut  off,  and  8.45  per  cent,  also  had  injuries  to  the  hands 
which  did  not  require  cutting  off.  By  far  the  larger  number 
were,  with  care^  in  the  position  to  earn  their  own  living,  pro- 
vided training  were  given,  and  it  is  satisfactory  to  find  that 
the  proportion  of  those  wounded  whose  legs  or  arms  had  to 
be  amputated  was  only  2.8  per  cent,  in  the  case  of  the  legs  and 
2.6  per  cent,  in  the  case  of  the  arms,  or  5.2  per  cent,  in  all. 
Appeal  was  made  by  Mr.  Hodge  to  the  public  to  give  employ- 
ment to  the  armless  men  where  possible  as  porters  and 
messengers,  and  arrangements  have  been  made  to  train  the 
disabled  in  various  ways  to  practise  new  industries.  It  is 
an  immense  work,  requiring  patience,  judgment,  and  steady 
pressure  upon  local  authorities,  but  it  is  getting  begun  on  the 
wisest  lines,  with  a  view  to  economy  of  expenditure  in  the 
future  and   the  well-being  of  the   injured   themselves. 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 

Period. 


Calgary      and     Edmonton 
Land (Dec.) 

Do Prev 

Craig  and  Rose. . . .  (Mar.) 

Do Prev. 

Land    Mortgage   Bank    of 
Texas    (Mar.) 

Do Prev. 

Mirrlees,  Bickerton,  &  Day 
(Mar.) 

Do Prev, 

Svlhet  Tea  Co (Dec.) 

Do Prev. 

W.  and  A.  McArthur  (Jan.) 

Do Prev 


Gross 
Profit. 


22,090 
14.630 


9.530 
13,010 


Nett 
Profit. 


£ 
11,970 

3,600 
13,840 
13.770 

26,390 
23.560 

23.950 

16,940 

1,700 

4.540 

42,570 

34.030 


Total 
Re- 
serves. 


6,500 
5.500 

45.000 
45,000 

25,000 
20,000 


65,378 
55.378 


Divi- 
dend. 


Carried 
For- 
ward. 


% 
80 

74 
7 

10 

7i 
6 
16 
6 
5 


5.600 
5,260 

35.980 
33.480 

2,120 
1,260 
3,800 

4,500 
2,410 


At  a  General  Court  of  Proprietors  of  the  Bank  of  England  Sir 
Charles  Stewart  Addis,  of  the  Hongkong  and  Shanghai  Bank- 
ing Corporation,  was  elected  a  director  for  the  remainder  of 
the  year  in  the  room  of  Mr.  Albert  George  Sandeman,  who  has 
retired. 


AUSTRALIAN 
MUTUAL  PROVIDENT 

Esid.         SOCIETY.         JS49. 

The    Largest    Mutual   Life   Office   in   the    Empire. 

Funds,  £38,000,000.  Annual  Income,  £5,000,000. 

MODERATE     PREMIUMS. 

LIBERAL     CONDITIONS. 

WORLD-WIDE     POLICIES. 
Every  Year  a  Bonus  Year.    Whole-life  Policies,  20  years  in  force,  show 
average  increase  of  the  sum  assured  by   Bonus  exceeding  50  p»r  cent. 
Endowment  Assurance  Results  also  Unsurpa6Sed. 

37,Thpeadneedle  St.,  London,  E.C.  2. 


1 


528 


tTbe  Javestoi's'  IReview. 


Jim;  i,  1918. 


THE  WILL  TO  WIN 


Purchase   National 


w 


ar 


Bond 


s 


Would  you  like  to  PURCHASE  on  the  INSTALMENT  SYSTEM  ? 

The   PRUDENTIAL   National   War 
Bond    Policy    WILL    HELP    YOU. 


You  may  PURCHASE   Bonds  for  £100  redeemable  in: 


Age  next  biil'iday. 


5  years  at  102  by  5  annual 
payments  ol 


7  years  at  103  by  7  annial 
payments  of 


10  yean  at  105  by  10  annual 
payments  of 


30      £19    12    0     £13    12    8      £9     4   2 
50      £19    16    8      £13    18   10      £9    12   2 

The   PRUDENTIAL   undertakes  to   take  up  the  Bond  immediatety)  the  first  instalment  is  paid. 


IF 

IF 
IF 


you  die  before  the  Bond  matures  the 
Bond  will  be  at  once  handed  to  your 
legal  representative  ;  payment  of  the 
remaining  instalments  will  not  be 
required. 

you  are  killed  in  an  air-raid  TWO 
Bonds  will  be  given  instead  of  ONE, 
provided  death  occurs  within  one  week 
of  the  injury. 

death  occur  before  the  Bond  is  re- 
deemed by  the  Government,  your 
representative  may  select  any  Bond 
still  current  of  the  same  issue,  and  the 
subsequent  half-yearly  dividends  will 
be  paid  to  him. 


IF 


IF 


IF 


you  die  on  active  service  abroad, 
the  instalments  paid  will  be  returned 
with  COMPOUND  INTEREST  at 
5  per  cent,  per  annum  in  substitution 
for  other  benefits. 

you  pay  income  tax  at  the  rate  of  3s. 
in  the  £  or  over,  you  will  be  able, 
subject  to  the  usual  limitations,  to 
claim  rebate  of  tax  of  £\  Is.  per  ;f  100 
Bond,  and  in  eflfect  to  reduce  your 
instalments  by  that  amount. 

you  wish,  the  instalments  may  be  paid 
half-yearly  or  quarterly. 


NO    MEDICAL    EXAMINATION    IS    REQUIRED. 


Fult  Prospectus  anti  Particulars  may  bo  obtainBd  from 

PRUDENTIAL   ASSURANCE  COMPANY,   LTD., 

HOLBORN    BARS,     LONDON,     E.C.  1. 

Or  any  of  their  Representatives. 


Jl  NE    I,    1918. 


XTbe  Jnvestovs'  IRevtew, 


529 


SCOTTISH  UNION  &  NATIONAL 

INSaRANCE  COMPlNy. 

ESTABLISHED     1824. 

ASSETS    exceed    £1 1 ,000,000. 

■f IRE  (JNCLUOINC  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  CLASS  BREAKAGE,  TRANSIT  OF 
SECURITIES,   FIDELITY,  PROPERTY  OWNERS'   LIABILITIES,  HORSE  DRIVING 

ACCIDENTS,  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh;  35,  St.  Andrew  Square. 
London :  S,  Walbrook,  E.C.  4,  and  4,  St.  James'  St.,  S.W.  1. 


In  these  days,  when  wide  circulation  of  papers 
through  the  post  is  impossible,  we  rely  on  news- 
paper advertisement  to  remind  our  friends  that  we 
look  to  them  to  do  what  they  can  to  make  the 
merits  of  the  Society  known  in  their  own  circles. 

The  Clerical's  strong  2j  per  cent.  Valuation, 
unbroken  Bonus  record,  and  attractive  rates  of 
premium,  carry  great  w-eight  with  everyone  who 
is  selecting  an  office  in  which  to  assure  his  life 
in  these  hazardous  times.  —  A.  D.  Besant, 
General  Manager  aiid  Actuary,  Clerical,  Medical 

and  General  Life  Assurance  Society,    15,   St. 

James's  Square,  S.W.  1,   London. 


"EXCBIMTX 


ASSURANCE   COMPANY 
LIMITED. 

Established  1782. 

Head  Office:  PHCNIX  HOUSE,  KING  WiLLIAM  STREET,  LONDON,  E.C.  4. 
Total  Assets  Exceed  4519,000,000. 
Claims  Paid  Exceed  £100,000,000. 

Chairman— Rt.  Hon.  LORD  GEORGE  HAMILTON,  P.C,  G.C.S.I 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

Loss  of  Profits  following  Fire,  Workmen's  Compensation,  Fidelity  Guarantee, 
Burglary,  Trustee  and  Executor,  &c. 
Prospectuses  and  Proposal  Forms  may  be  obtained  on  application  to  any  of 
the  Branch  Offices  or  Agencies,  or  to  the  Head  Offices 

General  Manager        -        SIR  GERALD  H.  RYAN. 


LIFE  ASSURANCE  AT  MINIMUM  RATES. 

A  Plan  of  Assurance  Specially  Adapted  for  Present  Times. 
For  particulars  address  lite 

GRESHAM  LIFE  ASSURANCE  SOCIETY, 

Sl.  Mildred's  House,  Poultry,  E.C. 


FOUNDED      1848- 


LTD., 


FUNDS     £10,500.000. 


THE  GRESHAM  FIRE  AND  ACCIDENT  INSURANCE 

SOCIETY,  LIMITED. 
Transacts  all  classes  of  Fire  and  Accident   Business. 

Chief  Officf,  :    St.  Mildred's  House,  Poli.trv,  London,  E.C. 


Money    and   Credit   Notes. 


Bank  Rate  5  per  Cent.    (Reduced  from  5J  percent. 
Thursday,  April  5,  19x7.) 


on 


Norfolk  House,  Friday  Evening. 

Sometimes  call  money  is  a  little  wanted,  sometimes  there  is 
more  offering  than  the  market  can  take  up,  so  these  fluctu,-itions 
have  no  influence  upon  discount  rates,  which  remain  as  in  our 
table,  and  the  up  and  down  movement  in  the  short  loan  rates  is 
only  about  J  per  cent.  The  most  noticeable  incident  of  the 
week  was  the  large  volume  of  applications  for  the  Liverpool 
yearlings.  These  were  allotted  at  about  3]-i-  per  cent.,  and 
sellers  were  offering  them  in  the  market  at  3J  per  cent,  later  in 
the  day.  Late  in  the  week  French  bills  were  offered  and 
cheapened  a  little  to  the  buyer.  The  discount  quotations,  in 
other  words,  hardened  to  4I  per  cent,  for  Jantrary  and  4^  per 
cent,  for  October  maturities.  Arrangements  were  made  on 
Wednesday  for  placing  some  Italian  credit  bills  next  week,  but 
the  price  is  not  yet  settled. 

Last  week's  Bank  return  is,  in  effect,  a  mere  reversal  of  the 
previous  week's,  that  is  to  say,  the  money  then  paid  off  on 
other  deposits  and  Government  deposits  was  this  week  borrowed 
again.  So  Government  securities  are  ;fi, 157,000  and  other 
securities  ;fo.iSi,ooo  up.  At  the  s.ame  time  public  deposits  are 
jf2,fi22,ooo   and   other   deposits   ^'7, 670, 000   lower.     The    reserve 


is  £ii,Soo  better,  because  against  an  increase  of  ^^818,000  in 
the  coin  and  bullion,  there  is  an  expansion  of  ;,{,'8o5,ooo  in  the 
note  circulation,  so  the  proportion  is  down  1^  to  17J  per  cent. 

As  a  result  of  the  conference  between  the  bankers  and  the 
Chancellor  of  the  Exchequer,  to  which  we  referred  last  week, 
the  clearing  banks  have  agreed  not  to  allow  more  than  the 
published  rate  of  intere.st  on  deposits,  which  is  3  per  cent. 
Recently  there  has  been  considerable  competition,  especially  in 
the  provinces,  to  obtain  long-term  deposits,  and  the  rate  ha.s  been 
forced  up  to  5  per  cent.  These  fixed  deposits  have  grown  very 
considerably  of  late  owing  to  the  practice  of  companies  to  keep 
funds  on  deposit  to  meet  heavy  claims  for  excess  profits  duty 
and  income-tax.  The.se  deposits  should  now  show  a  tendency  to 
ue  invested  in  War  Bonds  or  Treasury  bills  seeing  that  no  more 
than  3  per  cent,  will  be  allowed  on  them,  especially  as  the  banks 
have  also  agreed  to  give  special  borrowing  facilities  to  holders 
of  War  Bonds  in  order  to  enable  them  to  meet  contingent  re- 
quirements. The  arrangement  regarding  the  deposit  rate  does 
not  apply  to  overseas  banks,  apparently  because  with  them, 
especially  the  Australian  banks,  these  deposits  are  a  regular 
and  special  feature  of  their  business,  but  it  ought  to  be  possible 
for  them  to  agree  hot  to  take  further  deposits  at  a  high  rate 
from  those  people  who  ought  to  place  their  funds  in  Government 
securities. 

We  understand  that  there  is  likely  to  be  a  further  extension 
shortly  of  the  policy  lately  foflowed  by  the  clearing  hanks  of 
forming  close  working  arrangements  with  overseas  banks,  par- 
ticularly those  banks  operating  in  the  Dominions.  This  policy 
is  certainly  an  attractive  variation  of  the  amalgamation  fashion, 
for  it  opens  up  new  connections  entirelj'.  For  some  time  past 
there  have  been  "understandings"  between  various  banks,  but 
it  is  now  sought  to  make  the.se  more  definite.  It  will  be  recalled 
that  Barclays  some  time  ago  entered  into  an  arrangement  of 
the  kind  with  the  Colonial  Bank,  and  since  then  the  London 
Provincial  and  South-Western  has  entered  into  an  arrangement 
with  the  British  Bank  of  South  America,  while  Williams 
Deacon's  Bank  has  made  closer  its  connections  with  the  Anglo- 
South  American  and  London  and  Brazilian  Banks.  The  war  has 
so  changed  the  channels  of  trade  that  enormous  transactions 
have  now  to  be  carried  out  every  day,  and  some  of  the  colonial 
banks  have  not  been  big  enough  to  undertake  some  of  the  financ- 
ing single-handed.  This  development  has  quickened  the  interest 
taken  by  the  big  clearing  banks  in  colonial  business. 

A  rather  sharp  depreciation  in  the  value  of  the  lira  has  been 
the  -outstanding  feature  in  the  foreign  exchange  market  this 
week.  The  pound  sterling  will  now  purchase  43.45  lire,  or 
nearly  half  of  a  lira  more  than  last  week.  Stockholm  at  13.99  ^^■ 
and  Copenhagen  at  15. 27^  kr.  have  moved  in  cur  favour  some- 
what, likewise  Amsterdam,  which  is  now  quoted  at  g.56  fi.  On 
the  other  hand,  both  Swiss  francs  and  Spanish  pesetas  are 
about  15  points  dearer  at  19.15  fr.  and  16. 8n  p.  respectively. 
Portuguese  milreis  have  risen  3id.  to  33d.,  and  F.nglish  pounds 
stand  at  a  discount  of  r7  per  cent,  in  relation  to  Peruvian. 
The  Argentine  exchange  has  fallen  id.  to  513d..  and  Montevideo 
dollars  have  declined  i^d.  to  64^d.  The  X'ruguayan  Finance 
Minister  has  suggested  as  an  additional  means  of  improving  the 
exchange  situation  that  the  Central  ITruguay  Railway,  which 
is  British-owned,  should  be  nationalised,  and  the  proceeds  partly 
spent  in  paying  for  produce  .shipped  to  the  .Allies.  The  Mon- 
treal exchange  has  relapsed  ij  to  $4.8iJ. 

Mr.  Watt,  the  Treasurer  of  the  Australian  Commonwealth, 
has  given  the  total  of  its  debt  at  ;f6o9,ooo,ooo.  and  this  includes 
/'i48,ooo,ooo  issued  by  the  Commonwealth  and  War  Loans  from 
the  Imperial  Government  amounting  to  ^'49,000.000,  and  means 
in    annu.il    interest  a  charge   of  ^25,ooo,ocx). 

From  AnLsterdam  comes  the  news  that  the  subscriptions  to 
the  eighth  Austrian  War  I^oan  opened  on  Tuesda}'.  In  order 
to  make  it  attractive  it  is  described  as  the  "last  loan,"  and 
we  should  be  much  astonished  to  find  the  prophecy  falsified. 
As  we  said  last  week,  it  is  a  s.'A  per  cent,  loan,  and  is  to  he 
redeemed  between  1924  and  1958,  redeemed  in  paper  no  doubt, 
for  among  metals  even  lead  is  too  dear.  The  issue  price  is 
92^,  and  the  banks  are  apparently  being  taken  by  the  scruff 
of  the  neck,  so  to  .say,  and  inade  to  subscribe,  but  Viennese 
financial  circles  do  not  expect  much  money  from  other  quarters, 
except  municipal  savings  banks,  which  are  made  to  hand  over 
their  money  whether  they  like  or  not.  With  it  all  the  Kmpire 
of  the  Habsburgs  totters  to  its  fall. 


NOTICE    TO    SUBSCRIBERS. 


By  order  of  the  Government  no  copies  on  sale  or  return  of 
"THE  INVESTORS'  REVIEW"  can  be  sent  out  after 
June  15.  It  cannot  therefore  be  obtained  anywhere  on 
chance,  and  we  shall  be  deeply  obliged  to  habitual  reader) 
if  they  will  place  their  orders  for  uninterrupted  delivery 
either  with  their  local  newsagent  or  directly  with  this  office. 

Also,  we  regret  to  have  to  notify  that  from  the  beginning 
of  July  subscribers  will  have  to  be  asked  to  pay  almost  fu'l 
postage  on  their  copies,  that  is  to  say,  the  price,  post  free, 
will  henceforth  be  28/-  per  annum  inland  and  30/-  per 
annum  abroad  t  but  existing  subscriptions  or  subscriptions 
received  by  us  before  June  30  will  be  made  for  a  full  year 
at  the     present  prices. 


530 


Xtbe  Jnvestore'  IReview. 


Ji;.vE  I,  1918. 


Silver. 

Silver  continues  at  48^d.  per  oz.,and  no  change  is  at  present 
anticipated.  The  market,  Mocatta's  circular  says,  remains  re- 
markably quiet,  the  only  demands  being  for  silver  to  be  coined. 
A  decided  falling  off  in  the  requirements  for  the  industries  is 
felt,  and  the  trade  demand  generally  has  also  become  insigni- 
ficant. The  rupee  note  circulation  in  India  was  on  May  22 
10.792  lacs,  air  increase  of  180  lacs  on  the  week,  and  the  gold 
coin  and  bullion  m  India  is  down  220  lacs  to  1.945  '^'-5-  The 
stock  of  silver  in  Shanghai  has  gone  down  400  ozs.  in  sycee  to 
31.300,000  ozs..  and  $300,000  to  $15,900,000  between  the  i8th  and 
25th. 


BANK    OF     ENGLAND 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32.  for  the 


Notes  Issued 


Week  ending  on  Wednesday.  May  29,  1918. 
ISSUE    DEPARTMENT. 
£ 


8l,3»5,705 


£81,325,705 


Government  Debt .. 
Other  Securities    .. 
Gold  Coin  and  Bullion 
Silver  Bullion 


£ 
11,015,100 

7,434.900 

62,875>705 


Proprietors'  Capital 

Real 

Publio  Deposits  (Including 
Bzcbequer,  Savings 
Banks,  Commissioners 
o(  National  Debt,  and 
Dividend  Accounts) ., 

Oiber  Deposits 

Sevan  Day  and  other  Bills 


£81,325,703 
BANKING   DEPARTMENT. 

£          I  £ 

i4,5!3.ooo     Government  Securities  ..  56,737,732 

3,186,3^  I  Other  Securities    ..        ..  106,486,004 

Notes 30,274,465 

Gold  and  Sliver  Colo     ..  575,769 


41.055,712 

135,269,961 

8,903 


Dated  May  30,  :gi8. 


f194.073.970 


fi94.o73,97o 
E.  M.  HARVEY,  Chief  Cashier. 


BANKING     DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 

May  30. 

May  22, 
1918. 

May  29, 
1918. 

Increase. 

Decrease . 

3,162,647 

57,438,657 

119,481,325 

35.153 

43,080,406 
«i5.055,ioo 
34.535.176 

Liabilities. 
Rest 

Pub.  Deposits  .. 
Other    do, 
7  Day  Bills       .. 

Assets. 
Gov.  Securities. 
Other       do. 
Total  Reserve.. 

Note  Circulation 
Coin  and  Bullion 
Proportion 
BanV  Rate 

3,125,106 

38,433.960 

127,600,432 

9. '73 

55.580,732 
97.304.223 
30,835,716 

£ 

50,246,330 
62,633,045 

18-6  P.O. 
5 

3.>86,394 

41.055.712 

135,269,961 

8,903 

56,737.732 
106,486,004 
30,850,234 

£ 

51,051.740 
63.451.474 
17-5  P.c- 

61,288 
2,621,752 
7,669,529 

Decrease. 

10,352,569 

Inorease. 

804,910 
818,428 

£ 

270 

Increase. 

1,137,000 

9,181,781 

13.518 

£ 

39,015.050 

33,100,226 

195  PO. 

i    ,. 

10,352,569 
Decrease. 

I'l  p.c. 

PUBLIC   INCOME   AND    EXPENDITURE 

(For  7  days  ended  May  25.) 


Revenue. 


£ 

Customs          2,334,000 

Excise 677,000 

Estate,  &c.,  Duties..        ..  547,000 

Stamps 70,000 

Land  Tax  and  House  Duty  10,000 

Property  and  Income  Tax  766,000 

Excess  Profits  Tax  ..         ,,  4,754,000 

Land  Values 5,ooo 

Post  Office 400,000 

Crown  Lands 6o,oco 

Sundry  Loans — 

Miscellaneous 63,326 

Bullion  advances  repaid    ..  ifco.ooo 

ForTreasury  Bills  for  Supply  58,363,000 

3%  Exchequer  Bonds,  1930  — 

5%  Exchequer  Bonds,  1922. .  — 

6%  Exchequer  Bonds,  1920. .  — 

National  War  Bonds            *  11,838,000 

War  Savings  Certificates..  1,300,000 

4%  War  Loan,  1929-1942 )  

5%  War  Loan,  1929-1947  j  *  \ 
Other  Dtbts  created   under 

War  Loan  Act,  1915,  and 

Finance  Act,  1916..         ..  9,653,725 

Telegraph  Money  Act,  1913  — 
Under  Post  Ofiice  RJy.  Act, 

1913 — 

Under  Military  Works  Act, 

Under  Public  Buildings    ..  — 

Under  Housing  Act..         ,,  — 

Repayment  of  Advance  for 
Interest      on     Exchequer 

Bonds           . .        . .         . .  — 

China  Indemnity       ..         ..  — 

East  Africa  Loan  repay- 
ments   — 

Suez  Canal  Drawn  Shares. .  — 

Ways  and  Means  Advances  8,546,440 

Decrease      in      K  xchequer 

balances       _ 


Expenditure. 


f99.568.49J 


^Excluding  sales  through  banks  which  havo  not  yet  been  brought  to  accout^ 


LONDON 

BANKERS' 

CLEARING. 

Date. 

Increase. 

Decrease. 

1918. 

1917. 

£ 

£ 

January 
February 

2,073,224,000 

z, 863,123,000 

208,099,000 

1,603,634,000 

',779.524.000 

'73,870,000 

March 

1,784,836,000 

1,492,825,000 

292,011,000    1 

April 
Nlay           1 

1,446,306,000 

1,403,902,000 

42,404,000      ! 

— 

378,749.000 

364,965.000 

13,784,000      ] 

_ 

8 

384,904,000 

406,840,0:0 

21,936,000 

«5 

392,971,000 

338.984 .000 

33,987,000 

M              22 

293.599.oco 
387,328,000 

332.276.000 

36,677,000 

39 

336,301,000 

51,227,000     ; 

ToUl 

8,747,721,000 

7.320,742,000 

661,312,000     i 

234.483,000 

National  Debt  Service       ..  — 

Interest,   &c.,  on  War  Debt  571,170 

Development  &  Road  Irapvt  — 

Payments  to  Local  Taxation  250,000 
Other    Consolidated    Fund 

Charges       — 

Supply  Services       ..         .,  42,950,oco 

Bullion  Advances     .,         ..  150,000 
For    Advance    for    Interest 
on  Exchequer  Bonds  un- 
der   Capital   Expenditure 

(Money)  Act,  1904  ..         ..  — 
For  Treasury  Bills    ..       ..    52,975,000 
Other  Debt  under  War  Loao 

Acts,  19U-16                     ..  — 
For    War     Loan  and     Ex- 
chequer    Bonds      under 
Section  6r  of  Finance  Act, 

1916,  and  Section  54,  1917  181,555 
Under   Telegraph    (Money) 

Act,  1913 — 

Under    Post    Office    (Lon- 
don) Railway  Act,  1913  ..  — 
Under  Military  Works  Acts  — 
Under  Housing  Act,  1914..  — 
Public    Buildings  Expendi- 
ture Act,  1903        ..         ..  — 
Old  Sinking  Fund,  1907-8..  — 
Sinking  Fund,  1910-11        ..  — 
China  Indemnity      ,.         ..  — 
East  African  Loan ..           ,.  — 
Cunard  Agreement  Act     . .  — 
Expenditure  Ceitificaies   ,,  12,100 
Depreciation  Fund  ..         ..  — 
Suez  Canal  Drawn  Shares. .  — 
Ttmp.     Advances      Repaid  — 
Increase      in       Exchequer 
balances        841,666 


£99.56P,49t 


CURRENCY   NOTES. 


Retnrn  of  Curreooy  Notes  for  the  week  ended  May  29, 1018. 

Issued. 

Cancelled. 

Outstanding. 

£1  notes         

los.  notes       

Note  certificates 
Previous  total 

£ 

4,001,003 

',348.349 

180,000 

919.376.735     • 

3.547,96« 

1,286,011 

100,000 

672,181,634 

178,838.605 
39.861,833 
29,090,000 

924,906,088 

677,115,627 

247,790,460 

Ratio  of  gold  held  against  notes,  this  week,  13.03  p.c;  last  week,  13.40  p.e. 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.). 


Apr.  26,  igi8. 


Gold  coin  and  certificates      ,  .1 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

Total  gold  held  by  banks/ 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

Total  gold  reserves  . .  \ 
Legal  tender  notes,  silver,  &c.! 

Total  reserves  , .  . .  i 
Bills  discounted — Members' . . , 
Bills  bought  in  open  market 

Total  bills  on  band     .. 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec. 
All  other  earning  assets         . . '' 

Total  earning  assets  ..i 
Due  fm  other  Fed  Resbuk— n. 
Uncollected  items 
Total  dedctns.  fm  gross  dep. 
5%Red.FundagFed.Res.bknts 
All  other  resources 

Total  resources 

Capital  paid  in 

Surplus    • 

Government  deposits  . . 
Due  tomembrs— Res.  account 
Collection  items 
Otherdepsinc  For. Govt  crdts 

Total  gross  deposits  . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn— nettUab. 
All  other  liab,  in  for  Gov  crdts 

Total  liabilities 
Gold  res.  ag  nett  deposit  liab. 
Gold  res  ag  F.R.  nts  in  act  circ 
Ratio  of  Eold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio  of  total  res.  to  neti 
deposit  and  F.R.  note  lia- 
bilities comb  ned 


97.364.oco 
87.y95.400 
10,500.000 


Apr.  ig,  1918.      Apr.  27,  19x7. 


195.759.400 

164,8^,600 
4.797.000 


365,400,000 
12.789.000 


£ 

97.7fi-5.8oo 
82,763,800 
10,500,000 


£ 

62,339,600 
41,384,000 


191,029,600 

170,964,400 

4,633.800 


103.943.*» 

84,581,000 

303,600 


378,18^000 
180,437,600 
6o,479.8co 


366,629,800 
13,0^1,600 


89,028,200 
6,068,000 


379,661,400 
161,609,000 
61.633,400 


24U/0 17.400 

8,289,200 

7,481,400 

544.400 


257.232,400 
2,062,800 
75,706.200 


77,769,000 
105,600 
71,800 


713.367,800 


14,992,600 
226,^00 
26,133,600 
299,483,200 
47,034,800 
16,378,000 


389,0^9,600 

305,246,400 

1,579,000 

2,203,400 


713,367.800 


62.9% 
56.6% 


59-3% 


61.3% 


223,264,400 

9,335,000 

9,239,000 

658,60. 


195.096,200 

7,008,600 

14.280.00'! 


21,288,600 
7,244,600 

16,319.000 
3,040,600 


242,517,000 

95.800 

77.435.200 


47,891,800 

26.400 

40,968,400 


77,531,000 
81,800 
52,200 


690,843,400 


14,965,800 
226,80c 
15,099,800 
293,972,000 
31,244,000 
17,664,400 


377,980,200 

302,857,400 

1,579,000 

2,234,200 


699.843,400 


63.6% 

58.0% 


608% 


62.9% 


40,994,800 

8o,oon 

1,110,600 


285,174.400 


11,281.800 

19,937,600 
'43.9^7.c«o 
25,856,400 


189,701,200 
84,101,81:0 

89,600 


285,174,400 


70.0% 
'01.2% 


ai.8% 


83.8% 


REW   \dRK  ASSOCIATED    BANKS   AND    TRUST    COMPANIES 
(dollar  at  4s.).  


Loans,  Discounts,  efc. 
Cash  in  Vaults  of  Members 

Fed.  Res.  Bk 

Aggregate  Reserves     . . 

Excess  Reserve 

Nett  Demand  Deposits 
Nett  Time  Deposits     . . 
U.S.  Deposits  Deducted 
Circulation         


May  25,1918  MayiS,  I9i8{  Mayii,igi6 


£ 
9x2,970,000 


May  26, 1917 


9'8,S 


106,860,000  !  to6,36t>,oco 
9,084,000  I     9,908,000 


7,324.400  i     7,307,200 


I  906,310,000 

2l,9d6,ooo 
I  107,430,030 
>  8,582,000 
;  743,134,000 
35,942,000  I 
70,766,000  \ 
'      7,272,003  i 


734,004,000 


12,324,000 
728982,006 

37,726,000 

5.758.000 


BANK 

OF  FRANCE   (25  franct  to  the  £|. 

May  30, 1918. 

May  23,  1918. 

May  16,  1918. 

May  31,  IS'7 

£ 

£ 

£ 

£ 

Gold  In  band 

'  133,812,600 

133,785.120 

'33.754,840 

I29,5«6,ll40 

Silver  in  tiand 

10,161,64a 

10,219,480 

10,249,800 

10304.000 

Bills  discounted 

44,824,200 

43,152,680 

43.655  760 

20,886,440 

Advances 

37.177.080 

37,507,000 

39,717,160 

44,822,760 

Note  oiroulatioo 

',093.734.880 

1,083,925,520 

1,082,561,120 

779.>/"r48o 

Public  deposits 

1,842,360 

2,619,880 

3,582,410 

5,0X9.320 

Private  deposits 

133,593,320 

126,483,720 

120,718,320 

105,124.560 

Poreien  Bills,. 

'45,6So 

334.520 

287,360 

78.240 

Proportion  between  bullion  and  circulation  20.64  per  cent., against  xo.Sz  M£ 
cent,  last  week.  Advances  to  the  State  £672,000,000,  increase  j(i4.ooo,ooo.  'fh* 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium.  £19.044,080, 
decrease  £121,560,  icd  at  the  branches  £24,314,200,  JecreasR  £.34,6co. 

BANK    OF    SPAIN  (25  pesetas  to  the  £}. 


May  i8, 1918  May  11,  igiSiMay  4,  1918  May  19,  if 


Gold        ..■      .. 

Silver 

ForelKD  Bills    .. 
Discouois  and  Sborl  Bills 
Treasury  Account,  &c. 
Notea  In  Circulation  .. 
Current   Accounts,  Deposlib. 
Dividends,  Interests,  Jtc.     .. 
Government  Securities 


£ 

82,104,675 

28,271,188 

3,889,666 

30,213,788 

25,464,641 

"7,429,469 

36,632,112 

2,000,328 

2.'75,3'9 


£ 

82,081,411 

28,132,710 

3,880,170 

30,359.143 

23,121,638 

118,043,430 

36,261,232 

',376,7 "4 

2,466,344) 


£ 
81,684, 
18,200, 
3.840, 
30,522, 
24.982, 

"7.755. 

35.300, 

1.657, 

3,081, 


725 
,850 
,63' 
723 
.402 
,436 
,'9' 
,095 
97' 


£ 

57,io3,OM 

30,119.683 

3,729.065 

32,198,377 

25.305.485 

97.3  "O.SH 

30,31 1, ♦4» 

I,5-4,'«4 

8,457.797 


June  i,  igi8. 


ZTbe  5nve8tor8'  IReview. 


I 
■ 


NETHERUNUS  BANK  (12  Florins  to  the  £). 


Gold  and  Silver 
Bills  and  Advances 
Note  ciroulatioo 
■Deposits.,        .. 


May25, 1913    Ma)  18,1918.  May  11, 191I    May35, 1917 


60,769,833 

15,7761416 

761792.083 

5,904,916 


60,583,083 

■  6,527,415 

78,131,916 

4.938,333 


6o,77«,ooo 
18,080,500 
79.564.583 
4.858.-50 


t 

50,305,500 

14,827,500 

62,759,000 

5.492*750 


BANK   OP    SWEDEN  (18  kroner  to  the  £). 


Gold 

Balaaoe   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  . . 
Discounts  and  Loans 
Notes  In  oiroul^tion 
OepositR  at  notice  ,. 


May  4,  1918. 


14,307,000 
7,600,000 

3,885,000 
13,502,000 
34,292,000 

4,925,000 


Apr.  13, 1918.    Apr.  6,  1918. 


I 
14,327,000 

7,538,000 

3,901,000 
15,675,000 
33,855,000 

7,168,000 


£ 
14,331,000 

7,307,000 

3,934,000 
15,769,000 
34,662.000 

6,552,000 


May  5,  1917. 


£ 
11,280,000 

6,828,000 

3,150,000  ■ 
9,243,800 
24,073,000 
6,705,000 


BANK  OF  NORWAY  (18  kroner  to  the  £1. 


May  7, 1918. 


Gold 

Balance  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
Discounts  &  Loans. 
Notes  in  Ciroulatioo 
Deposits  at  notice.. 


^  £ 
6,731,000 

3,549,000 
712,000 

i8,48S,ooo 
I9,77>,000 
6,352,000 


April  30, 1918. 


£ 
6,733,000 

3,645.000 

712,000 

18,416,000 

19,741,000 

6,415.000 


April  22, 1918. 


£ 

6,734,'  O) 

3,590,000 

713,000 

18,450,000 

19,726,000 

6,457,000 


May  7,  1917 


£ 
7,163,000 

3,799,coo 
706,000 

13,141,000 
15,615,000 
7,021,000 


SWISS  NATIONAL  BANK  (25  francs  to  the  £). 


Osid  and  stiver 

Bills 

Note  circulation 
Current  and  deposit 
accounts     .. 


May   15,  igi8 


£ 

C.307,276 
11,041,7^2 
27,248,168 

4,058,496 


May  7,  1918. 

£ 

■7,289,952 
12,022,916 

27,9'-4.i32 
4,181,088 


April  30, 1918. 


May  15,  1917. 


£  £ 

17,293.936  !        15.753.836 

11.559.972  I          6,110,324 

28,008,604  20,272,944 

3,315,280  I          3.587.072 


BANK  OF  ITALY  (25  lire  to  the  jE). 


Feb. 38, 1918.  Feb  20, 1918  Feb.  10, 1918'Mar.  i,  1917 


£ 

Total  cash  43,772,240 

Inland  Bills       \    29,816,360 

Focsign  BIHs '•        897,360 

jUivances  ;    24,284,400 

Sovernmant  securities        ,.'      8,795,840 

Olroulation         267,249,200 

I>Bposfts  at  notice      ..        ,.     33,864,520 
OiiMcnt  ae«oiin*6  20,090,520 


„  £ 

38,300,340 

29,404,200 

887,840 

20,564,920 

8,813,240 

264,926,160 

38,043,^20 

21,712,640 


Jv 


£      1 
43,0=4,880  j 

29,467,480  ' 

4,436,000  I 

23,346,440  I 

S,8e6,i6o 


£ 

43.JJ*.3C« 

21,247,64* 

838,920 

19,412,400 

8,697,52s 


263,291,560  I  154,63^,760 
35.555.840  I  19,255,966 
19,574.56«  '    11,482,640 


IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  £). 


I  May  15,  19x8, 


Total  Coin  &  Bullion' 
Treasury  Notes 
Bills  discounted 
Advances 
Note  circulation 
Deposits 


€ 
123,290,950 

77,792,300 

727,310,450 

30c, 800 

5901 193.500 

387,568,500 


May  7,  i9«8. 


April  30,  2918. 


i 

123,247,750 
77,577,350 
678,879,400 
303.500 
390,116,600 
342,852,200 


i 

X23, 239,800 
76,759,750 
694,389.400 
435,500 
591,039,650 
352,750.250 


May  J5, 1917. 


127,742.150 
22,998,100 
463,889,650 
502,930 
410,314,950 
229,634,100 


Clearing  House   return     during    March    ;C459i8i5,355,   against    ;f420,879,905 
in  February. 

LONDCTN  COURSE  OP  EXCHANGE. 


Place. 


Usance. 


May  28,  igi8. 


Sellers.  Buyers 


Amsterdam  . 
Paris      . .     . 


Switzerland. 

Genoa,  &c.  . 
Spain     . .     . 


Lisbon  and  Oporto 
Copenhagen..  .. 
Christiania  . .  . . 
Stockholm   . .     . . 


Cable  transfers  ..  .. 
Cable  transfers  . .  . , 
Three  months*  bills. , 
Cable  transfers  . .  . . 
Three  months'  bills  .. 
Cable  transfers  . .  . . 
Cable  transfers  . .  . , 
Three  months'  bills  . , 
Cable  transfers  , .  . . 
Cable  transfers . . 
Cable  transfers  . .  . . 
Cable  transfers  . .     . . 


9.48 

9-53 
37.18 

27-13 

27.53 

27.58 

19^10 

19.20 

19-45 

19-55 

43.40 

43-50 

16.62 

16.72 

66^ 

67* 

Vk 

J3i 
15.28 

15-18 

J5-03 

15-13 

13.85 

1395 

May  30,  1518. 


Sellers.  Buyers 


9  47 

27.13 
27-53 
19.10 
19-45 
43-40 
16.73 

661 

30 
15-25 
15.05 
13-95 


9-52 

37.18 
27-58 
19-20 
19-55 
43-50 
16.83 

67i 

32 
J3-35 
15-15 
M-05 


FORBIGN   RATES   OF    EXCHANGE  ON 

LONDON 

Method  of 

Last 

This 

Quoting. 

Week. 

Week. 

Paris,  cheques 

Francs  to  /^i 

25 .22  J 

27.164 

27-i5i 

Amsterdam,  cheques 

Florins  to  £1 

12.107 

9-60* 
43  2li 

9.48 

Italy,  sight 

Lire  to  £1  .. 

35.22J 

43 -424 

Madrid,  sight 

Pesetas  to  f  I 

25.22J 

16-80 

16-774 

Lisbon,  sight 

Pence  to  railrels  . . 

53id 

3id- 

32d. 

Switzerland,  sight   ,. 
Christiania,  sight 

Francs  to  ;t  I 

25-22J 

19.27* 

19.08 

Kroner  to  £"i 

18.159 

15-031 

15-09 

Stockholm,  sight      .. 

Kroner  to  jf  I 

18.159 

13.82J 

>3-9ai 

Copenhagen,  sight    .. 

Kroner  to  £"i 

18.159 

15-16J 

15-29 

Petrograd,  sight 

Roubles  to  £"10     . . 

94-57 

nom- 

nom- 

AJexandria,  sight      .. 

Piastres  X.0  £1 

97J 

974 

97i 

Bombay,  T.T 

Sterling  to  rupee.. 

1/4 

''d 

1/5H 

Calcutta,  T.T 

Sterling  to  rupee.. 
Sterling  to  dollar.. 

1/4 

i/sH 

Hong  Kong,  T.T 

S/^i 

3/i|4 

Shanghai,  T.T 

Sterling  to  tael     . . 



4/6 

Singapore,  T.T 

Sterling  to  dollar.. 

— 

2/3M 

2/4^ 
2/2i 

Yokohama,  T.T 

Sterling  to  yen     .. 
Dollars  to  ;f  r 

24.58d. 

2/2? 

New  York,  cable      .. 

4-76JS 

Buenos  Aires,  T.T 

Pence  to  dollar    . . 

47.58d. 

Slid. 

Slid 

Valparaiso,  90  days.. 

Pence  to  peso 



i6ld 

Montevideo,  T.T 

Pence  to  dollar    , . 

5id. 

65W- 

64  tu 

Rto  de  Janeiro,  90  days    .. 

Pence  to  milrei&  .. 

I6d. 

•jSd- 

OPEN  MARKET  DISCOUNT.  Last  week   Thisweek 

Percent.    Percent. 

Thirty  and  sixty  day  remitted  3*      .,       34 

Three  months  ,.  3X      ,,       31 

Four  months  ,,  , 3*      ,,       31 

Six  months  ,  34      ,.        3I 

Three  months  6ne  iaiand  bllli  4-1    ••      4— i 

Pourmonths  4i— 1    «*      4i — X 

Six  months  4}— J    .,      Jj— } 

BANK    AND    DEPOSIT    RATES.    Last  week  This  week 

Percent.  Per  cent. 

Bank  of  England  lainimum  disoouol  rate        5  .•        5 

,,  ,,        short  loan  rates  —  ..       — 

Bankers*  rate  on  deposits 3  •*        3 

Bill  brokers' deposit  rate  (call) 3  ••        3 

,,  7  and  14  days' notice  3^  ••        3i 

Oirrant  rates  for  7  day  loans         3 — \  ••    3— | 

,,  Corcall  loans  3|— 3  ••        3 


The   Week's    Stock   Markets. 


To-day  some  ;,f  50,000,000  will  be  distributed  in  War  Loan  in- 
terest. Usually  a  large  proportion  o£  a  sum  like  that  might  be 
expected  to  come  into  the  Stock  E.xchange  for  reinvestment,  and 
dealers  would  have  been  all  agog  to  get  a  "  turn"  out  of  the 
prospective  buyers.  Now,  however,  the  campaign  to  induce 
those  who  do  not  absolutely  require  their  interest  for  current 
expenses  to  put  the  money  back  into  War  Bonds  must  necessarily, 
and  properly,  have  so  much  effect  that  the  balance  which  will 
be  left  over  for  speculative  purposes  may  be  almost  negligible,, 
and,  anyhow,  it  has  had  no  apparent  effect  in  any  direction. 
The  progress  of  the  battle  on  the  Western  front  has  not  been  so 
satisfactory  as  was  hoped,  but  the  Stock  Exchange  can  generally 
be  relied  on  to  take  sane  views  on  matters  of  that  sort,  and  it  has 
kept  a  very  level  head  all  through.  With  regard  to  individual 
markets  there  have  been  good  and  bad  developments.  The  re- 
lapse in  the  Rubber  section,  which  for  months  past  has  provided 
a  large  proportion  of  current  dealings,  was  naturally  not  liked, 
and  the  latest  revenue  statement  of  the  Grand  Trunk  was  re- 
garded as  most  disappointing  owing  to  the  huge  increase  in 
working  expenses  which  more  than  offset  the  large  gain  in  grosi 
receipts.  On  the  other  hand,  the  dividends  of  the  Antofagasta 
and  Leopoldina  Railways  gave  a  useful  fillip  to  their  sections, 
and  gilt-edged  securities,  Foreign  bonds  and  Shipping  shares 
were  all  good.  But  if  you  watch  the  daily  markings  of  business 
done  the  record  is  not  very  cheerful,  -and  for  the  present  we  can 
see  no  hope  of  material  improvement. 

Although  the  German  offensive  on  the  Western  front  has  made 
more  progress  than  was  anticipated  by  the  average  layman 
after  the  confident  statements  that  had  been  made  about  our 
complete  preparations  to  resist  it,  the  Stock  Exchange  has 
taken  a  very  sane  view  of  the  position,  and  has  kept  wonder- 
fully cheerful  in  face  of  what  must  be  regarded  as  a  difficult 
situation.  The  Funds  have  been  particularly  firm,  and  the 
leading  securities  are  all  fractionally  higher,  although  towards 
the  end  of  the  week  business  became  extremely  restricted. 
Colonial  issues  have  also  been  steady,  and  in  a  few  of  the 
shorter-dated  stocks  a  fair  amount  of  business  was  transacted. 
Foreign  securities  have  shown  a  wonderful  amount  of  streiigth, 
particularly  in  the  South  American  section.  Brazilians, 
Guatemaias,  Uruguays,  Venezuelans,  and  Peruvian  Corpora- 
tions have  all  gained  to  a  substantial  extent,  and  Spanish,  Por- 
tuguese, Japanese  and  Chinese  have  also  displayed  strength. 
Business,  it  is  true,  has  been  on  a  small  scale,  but  it  is  satistac> 
tory  to  find  a  moderate  inquiry  in  these  days. 

Home  Railways  opened  with  a  considerable  amount  of  inquiry 
for  the  favourite  stocks,  and  prices  generally  advanced  small 
fractions,  but  towards  the  end  the  tone  became  dull  and  a  good 
part  of  the  gain  was  lost.  An  exception  may  be  mentioned 
in  the  case  of  the  Metropolitan  Districts,  which  for  some  not 
fully  explained  reason  jumped  2^.  Americans  generall)'  have 
been  weak,  and  International  Mercantile  Marine  dropped  i  to 
3  points,  but  interest  in  this  section  is  almost  non-existent. 
Canadian  Pacifies  have  been  stagnant,  and  Grand  Trunks  were 
adversely  affected  by  the  exceedingly  poor  statement  for  April, 
which  shows  that  expenses  increased  far  more  rapidly  than 
receipts.  Argentine  Rails  have  not  moved  appreciably,  and 
the  tone  has  been  rather  dull  owing  to  continual  labour  diffi- 
culties,  which,  although  apparently  not  serious,  have  a  depress- 
ing influence.  Antofagastas  had  a  spurt  of  about  8  points  on 
the  excellent  dividend,  which  comes  out  at  12  per  cent.,  against 
8,  but  the  pace  was  too  rapid,  and  on  profit-taking  a  good  deal 
of  the  gain  was  lost.  I^eopoldinas,  San  Paulos,  and  Mexicans 
were  also  well  supported  and  generally  moved  upwards. 

Banks  have  been  in  moderate  demand,  and  where  changes 
have  occurred  they  have  usually  been  favourable.  Breweries 
were  irregular,  and  while  City  of  London  advanced  a  couple 
of  points,  Watney  deferred  lost  1J2.  The  other  changes  have 
not  been  of  much  consequence.  Telegraphs  showed  exceptional 
strength  on  what  must  be  regarded  as  very  small  business, 
while  the  Shipping  division  was  pronouncedly  strong  on  the 
revision  of  Blue-book  rates.  Textiles  generally  were  firm  and 
English  Sewing  Cotton  and  a  few  others  made  substantial  head- 
way, but  the  section  generally  did  not  get  very  much  attention. 
Iron  and  Steel  shares  opened  with  a  considerable  displaj'  of 
strength,    but   afterwards  eased  off,   »nd   in  tihe  Miscellaneous 


532 


XTbe  Jnveetors'  IReview. 


June  i,  1918. 


Industrial  section   the  movements  were  trifling    and   irregular. 
Associated   Cements,   however,  showed  some  strength. 


i  Last    Thi> 
IWeek  Week 


Consols... 
War  Loan 


India  3% 

„     3ii% 

Australian  5}%,  ioao-2s 

Canada  4%,  1940-00  .... 

■  .       44%.  ipio-S  •.-• 

ArKrntii!e5%  1886 

BelKian3% 

Brazil,  1913 

^^.,      5%,J914    

Chinese  1896  


Egypt  Unified  4% 

Caledonian  defd 

Gl.  Central  pia 1 . 

,,        „        dfd 

dt.  Eastern 

Gt.  Northern  dfd 

Gl.  Western    

Lanes,  and  Yofks 

London  Brighton  defd.  . . 

London  Chatham  ord 

Canadian  Pacifio   

E.  Indian  Guar.  4A  %  debs. 
Grand  Trunk  ord.    

Do.  ist  pf 

Do.  3rd  pf 

Antofagasta  dfd 

B.  A.  &  Pacific 

B.  A.  Gt.  Southern 

B.  A.  Western 

Cent.  Argentine  ord 

Anglo-South  American    ..1     8 

Bank  of  Australasia 1   120 

Bank  of  N.S.  Wales 1    354 

Barclay  &Co."  A" '    7I 

Do.       "B" I     12? 

Capital  &  Counties  |    27} 

Chartered  of  India    '    76II 

Hongkong  &  Shanghai    . . 

Lloyds  

Armstrong,  Whitworth  .. 
Birmingham  Small  Arms 

Cammell- Laird 

Car^o  Fleet 

Davis,  D.,5/  

Dorman,  Long  

Associated  Cement 

Borax  dfd 

Bovrll    

British  Amer.  Tobacco  pf. 
British  Aluminium  ... 
British  Oil  &  Cake    ... 

firunner,  Mond 

Castner-Kellner 

Eastern  Telegraph   . . . 
Kastmans 

Cunard 

Furness,  Withy 

P.  &0.dfd 

Royal  Mail  


I  Last  j  this 
WeeklWeek 


N.S.W.  5%,  1921-3 

.,      51%.  1920-2 

,,      5?%  Debs 

New  Zealand  4%,  1929  . . 
Queensland  4)%,  1920-5 . . 
S.  Australian  5*%  1922-7. . 
Union  of  S.  Africa  45%, 

1920-5    

Victoria  4j%.  1920-5 

Westn.  Aus.  4%    

French  WnrLoan,  5%  .. 
Japan  4i%  (isi),  1905   .... 

„        5%- 1907 

Mexican  5%,  1899   

Russia  4  % 

»      44%. '909 

..       5%.  1906 

London  and  N.-W 

London  and  S.-W.  dfd.  .. 

Metropolitan  

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastern  

Sth.-Eastern  dfd 


Chesapeake. 

Erie 

Southern  . . . 


Leopoldina 

Mexican  ord 

San   Paulo(Brazilian).... 
United  of  Havana 


London  &  15razllian 

London  City  &  Midland. 
London  County  &  West/. . 

London  Joint  Stock 

Nat.Prov.(£ioJpd) 

Do.  (£12  pd) 

Standard  of  S.  A 

Union  Discount 


99 
1024 
864 

994 

94 
934 
79     1 

77i' 

954 

89 

44 

224 

20? 

.14} 
56 

'ii 

272 
62 


384 

18 
186 
724 

24j» 

7! 
154 

29 

25*  1 
30 

lol 


Kynochs   |   40/6 


Mond  Nickel  ord, 

Kobel,  £1     

South  Durham  Steel 

Thornycroft    

Vickers 

Forestal  Land 

Hudson's  Bay    

Imperial  Tobacco  '  C 
Lever  Bros.  "  C"  pf.  .. 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

Pears,  A.  &F 

Underground  Inc.  Bds. 


pf, 


3L 
72/6 
45/ 
38/9X 
41/6X 

47/3 

7ft 
32/6 
20/6 

4 

3k 

16/ 

•i 

77 


Anglo  Argentine  istPf. .. 

BrazilTraction 

Darracq    

Anglo-Egyptian  "  B"  .... 

Buimah 

Lobitos 

Mexican  Eagle  pf 

North  Caucasian 

Roumanian  Cons 


V 

2/9 

26/9 

2b/ 

.5/9 

5/74 

12/9 

12/ 

45/ 

40/ 

16/9 

16/9 

4/6 
4/24 

4/4* 
4/' 

3/ 

2/10 

39/6 

37/6 

3/1 

3/ 

5/6x 

5/'4 

Allagarj/- 

Anglo-Dutch,  £1    

Anglo-Java  Rub.  2/-     .... 

Anglo-Malay  2/ 

Ayer  Kuning  £1 

Brit.  N.  Borneo  Trust  £1 

BukitCloha/- 

Bukit  Mertajam  2/-  

Bukit  Sembawang  2/- . . . . 

Carey  United  jf  I  

Chersonese 

Cheviot  2/-  

Dalkeith  2/- ;    2/6    1 

Grand  Central  £1 ',   23/6  | 

55/6 

23/6 

28/9 

3/74 

3/9 

S/ 

36/ 

22/3 

7/104 

36/8 

5/ 


It 

67/3 

11/9 

6 

15/10J 

17/ 
2 
13 

29/6 

4/3 

2 

25/6 


Coats :  iitt 

Courtaulds '  7^ 

English  Sewing  Cotton  ..;  54/ 

Fine  Cotton  Spinners  ....j  34/ 

Harrods  Stores I      24 

Dennis  Bros |  36/3» 

National  Steam  Car 18/ 

Rolls-Royce 1      2 

Shell !  6i 

Spies  (10/-) I  7/ 

Trinidad  Leaseholds ^  34/3 

Ural  Caspian i 

Venezuelan '  ijS 

Peraka/-  I  6/104 

!  Port  Dickson  2/;   3/74 


Rub.  Estates  Krian  2/-. 
Rubber  Trust  £1  ... 
iSampang  (Java)  2/-. 

[Seaport  £1 

Sengat  2/- 

Sereniban  £1 

iSialang  £1    f... 

[Singapore  Para  2/-    . 
Singapore  United  2/- 


Highlands  £t 

Java  Investment  £1 

Johore  Rubber  Lands  £1.. 

Kamunin-^  2/- 

KintaKellas2/- 

La  bu  2/- 

Langen  Java  £1 

Linggi2/- 

London  Asiatic  2/- 

Malayalam  £1 

M..rlimau  2/-  


Bt-  chuanaland  Exp 

B:  akpan  

Broken  Hill  Prop.  (8/-)    . 

Cam  &  Motor 

Ct  ntral  Mining  {£12)  ... 

Chartered    

Ciiy  Deep      ,., 

Cons.  Gold  Fields    ...., 

Crns.  Langlaagte , 

Crown  Mines  (lo/-)  .... 
De  Beers  dfd.  (£2  loi.) 

East  Pool(«/-) 

East  Rand  

Geduld 

Geevor(io/-)   

Gov.  Areas  Mod     

Gl.  Boulder  (2/-)    


2/4  : 
24/3  I 
52/6 

23/  ; 
27/ 

3/6 
31-1 
7/4J 
35/^ 
21/3 
7/104 
36/fi 
5/ 

7/3 

aH 

3ftxd 
12/0 

iH 
■5/ 

3 

■  ft 
17/ 

i«t 

13 
28/6 

4/  : 

liaxd' 
3H 
11/6 


3/«4 
23/9 
2/4 
25/ 
2/9 

32^6 

57/6 

4/ 

2/10 


Pataling  2/- 39/6 

Straits  Bertam  2/- 5/9 

Sumatra  Para  2/- 7i'6 

Sungei  Bahru  £1   35/ 

Taiping2/- 3/104 

Tandjong  £:    i  77/ 

Tandjong  Malim  £1 '  30/6 

Tebrau  £1  1  58/6 

;  Telogoredjo  £1 :  39/ 

!  Tempeh  2/- !  2/4 

United  Serdang  2/- '  9/6 

ValdOr2/- I  3/7i 

Vallambrosa  2/- \  19/ 


Kyshtini    

Mashonaland  Agency 
Meyer  &  Charlton    . . 

Modder  "B" 

Do..  Deep 

Mj-sore 

NtgerianTin 

Pahang  (3/-) 

Rand  Mines  (5/-)    .... 

Renong 

Rio  Tinto(£5)    

Russo-Asi.itic 

South  Crofly  (5/-) 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep  


994 
100 
1024 

87 

994 

934 
934 
79 

77« 

954 

89 

524 

324 

384 

44 

»9l 

az 

204 

■5 

56 

.34 
94* 

2S 


62 
254 


39i 
19 

183X 

72* 

25 
8 

'5j 
284 

254 

"I 
103 

40/6 

3i 

73/6 
47/6 
38/5 
41/9 
47/ 

7i 
32/6 
21/ 

4i 

34 

'"A 
764 

5i«x 

7/ 

57/6 
32/6X 

35/ 

'H 

6 

6/9 
33/9 


6/6 
*6 

3/14 
23/ 
2/4 
23/6 
2/9 
26/ 
56/6 
3/9 
2/74 

34/ 

5/8 

7/44 

29/ 

3/9 

72/6 

30/6 

58/6 

39/ 

2/4 

9/ 

3/7i 

■  8/9 

i 

71 

1 
■3/ 

m 

i 

3!' 


this  section  are  of  an  extremely  limited  character.  The  Rubber 
maiket,  on  the  other  hand,  has  taken  a  very  decided  turn  down, 
wards,  and  where  it  used  to  be  almost  impossible  to  buy  shares 
at  the  quoted  price,  sellers  now  have  to  give  away  a  substantial 
turn  in  order  to  do  business,  and  the  cumulative  effect  of  v.hat 
from  day  to  day  looks  like  a  trifling  decline,  becomes  im- 
pfjrtant  when  the  level  of  to-day  is  compared  with  that  of  ' 
few  weeks  ago 


The  Kalmouth  JJocks  undertaking  has  been  purchased  by  the 
Federal  Company,  which  is  part  of  the  combine  of  the  Peninsular 
nnd  Oriental  Co.,  the  British  India  Co.,  the  New  Zealand  Ship- 
ping Co.,  the  Union  of  New  Zealand  Co.,  Hain  and  Co.,  and 
("ilnvcr   Brothers. 


LONDON    PRODUCE   MARKETS 


The  general  course  of  trade  remains  without  improvemen*. 
business  being  confined  to  pressing  wants,  while  prices  maintained 
a  steady  level  in  most  directions. 

CURRENT    PRICES    OF    CHIEF    ARTICLES 

WEEK  ENDING    MAY  31    1918 


Last 

Week. 


TUs 
Week 


(n^U— per  cwl., 
duty  25.8,  gS% 
polarisation  . 

Tate's  Cubes 

Crushed 

Granulated  . .     . . 

Lyie's  granulated 

Foreign  granu- 
lated, first  marks 
f.o.b.,  spot 

GermauCubef.o.b. 

French  Cube 

prompi 

3ryalalllsed,  West 
India 

Beet,    88%    f.o.b. 


lea— per  lb. ,  duty 

I/-  lb. 
Indian  Pekoe 
Broken    ,, 
Orange    „ 
Broken    ,, 
Pekoe    Souobong 
Ceylon  Pekoe 
Broken    ,, 
Orange    ,, 
'Broken    „ 
Pekoe  Souchong 

Ooooa  —  per  owt, 
duty  6d.  per  lb 

Trinidad — per  cwl 

Grenada       . .     . . 

West  Africa..     .. 

Ceylon  Plantation 

Guayaquil 

OolTqe — per  cwt. 
duly  42/-  per  cwt 

Bast  India    . .     . , 

Jamaica 

Costa  Rica   ..     ., 

ProTlalona— 
Butter,  per  cwt 

Australian  finest 

Argentine     . .     . 

trisn  Creameries 

Dutch  ditto..     .. 

Russian  finest     . , 

Paris  baskets 

Danish  finest 

Brittany  rolls  — 
doz.  lb.      ,.     ., 

.  Baooo— per  owl. 

Irish      

Continental.,  ,. 
Canadian  ,.  .. 
American  ..  .. 
Bami— per  owl, 

Irish       

Canadian  ..  ,. 
Amerioaa     ..     .. 

QlMes*— per  cwt. 

Dutch 

Canadian  . .  . . 
English  Cheddar 
Wilis  loaf  ..  . 
New  Zealand 

Rtoe — per  cwt. 

Japan 

Rangoon  2  stars  . . 

BM«— per  120. 
English..  .. 
Irish  . .  . . 
Danish 

SpelUr— 

G.O.B.  as  to  posi- 
tion     


£    s.  d. 


3    4  9 

3     4  9 

2  17  9 

2  17  9 


nom 

nom. 


2  17    S 
nom 

».  d, 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

s.  d.  i  d. 

86  0  90  0 
79  o  85  a 
55  o  65  o 
t5  oroo  0 
up  to  90  o 


f   s.    d. 


3    4  9 

3    4  9 

2  17  9 

2  17  9 


nom. 
nom. 


2  17    9 
nom. 


I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

s    d.  s.  d, 

86  0  90  o 
79  o  85  0 
55  0  65  0 

85   0 103  O 

up  to  90  0 


Wool— per  lb. 
A  u  s  t  ra  1  i  a  n; 

Scoured  MerinC 
Sro.ired  Cr'sabr''- 
G.-ea'^y  Merino  .. 
Greasy  Cro9»bced 
New  Zealand 
(scoured)  Merina 
Greasy  CrossbreJ, 
Cape  snow  white' 

Indiarubberp.  tbi 

frantation,      Spot' 

Crepe | 

Goal — per  (on 
Durham,  best 
Seconds        ..     •  ■ 
Kast  Hartlepo'i'.. 
Seconds       ..     .. 
Steams,  best 
Seconds       ..     •• 


Dom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom 


ii 


oom. 
nom. 
nom 
nom 
32  6 
29  6 


Lead— pec  too.     ,  £    «.  d. 
I^nglish  Pig..     •■      nom. 
I'oreign  soil,  net   \£29i-£2H 

Qoloklllvar— per 

bottle  firsthand  ',     nom 


iioo  135  o, 

77  0  151  51 


:lo-o  135-0 
80-0  160-Q 


IIOO  1370110-0  117-C 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


!8S/ 

172/ 
169/- 172/ 
1 69/- 1  bo/ 

nom. 
:6i/-i65/ 
125/-165/ 

nom. 
nom. 
102/8-149/4 
nom. 
nom. 
s.  n. 
41  3 
26     3 

37  0-3S  0 
J5  0-36  0 
nom. 


252; 

252/ 
nom. 
nom. 
nom. 
nom. 
nom. 

nom. 


1 88/ 

172/ 
1 69/- 172/ 
169/-1S0/ 

nom. 
162/-165/ 
125/-165/ 


Tin— pec  Ion  j 
English  Ingots  .1 
Do.  bars  ... 
Standard  cash  ..j 
Tin  Plates, pec  boi 

.Copper — per  ton.  I 
English,  Tough,, 
per  ton  .  >  -  - ) 
Best  Selected 
Sheels   . .     . . 

{Standard 


nom. 
nom. 
£355 
nom. 


■ji;fii9-£i23 
■'  (iio-iioi 


This 
Week. 


notn. 
nom. 
nom. 
nom. 

nom 
nom. 
nom. 


nom 

nom. 

nom. 

nom. 
32  6 
29    6 

I     s.  d. 

nom. 
£29}i£m 


nom. 
nom. 
f350 
nom. 


nom. 
£"9-iCi23 

,  £'«  , 

fiio-iioi 


£58 

it 

t/iol 
tlt'i 


Flour— per  sack. 

Country  Straight 

Runs  ex  Mill . 


nom.  I 
nom.  I 
102/8-149/41 
nom.  J 
nom. 


41    3 
26    3 


40  0-41  o 
37  6-38  0 
nom.    i 


Jute— per  too 
;Native   firsts    lor( 
ishipment  1 

Oils-  i 

Linseed, per  lon..j 

Rape,  crude  

Coit'n  Seea.oru.U 
Petroleum  Oil, i>eij 

8  lbs. 
VVatec  While      .. 
()ilSeeds,Lin!.e^.4 
(.'.alc'Uta— pel  torn 

Spot'By  agree 
mcnt. 

Kape     .£29-ioi-30 

Iron — pet  ton        1 
Cleveland  Cash  ..       nom 


Tobaooo  —  duty 
niiinanufacturei 
8/2-10/4*  per  ib. 

Vtiginiaieat 


.C34-:C50 

44/3 


1^54  £50 


44/3 


I  6  -2    ( 
Keiuncky  leaf    ..    •  0  -i    < 

ti'a^''^"a::  ::  M.^n* 

'^*e%V'"!.""U/"P<ls. 

I 

Timber— Wood. 

Pitch  line    ..     ..poo/- 400 

Indian  Tea K       ..feSo/— 700 

Turpentine- 
American  Spot  ..|     iijj/ 

Cepra— per  ton 

Malaliar        ,.     •.46    0  o 

Ceylon 1  46    o  0 

F. M.S.  Singapore   4]  lo  o 

I  P.M.   Straits     ..;  45  10  o 


£58 
f66 
fie 


i/ioj 
i/nj 


By  agree- 
ment. 
£29-'0ii' 

nom. 


I  6-2  * 

I  0— I  t 

nom. 

I  6-6  6 

2/  upds. 


300/— 400( 
J80/-7OO/ 


iia/ 


46    0  0 

46  o  e 

45  to  0 

45  '0  0 


Oil   shares   have   been   weak,    and    whatever   changes    have 
.occurred   are  in  the   downward  direction,   but  the  dealings   in 


Sugar    market    remained   without    alteration,  fair   allotments, 
chiefly  of  British  refined,  being  mide 
^     Coffee. — Public  sales  experienced  a  somewhat  quieter  demand, 


June  i,  1918. 


XTbe  Jnvestots'  IRevtew 


533 


but  all  useful  liquoring  sorts  brought  steady  prices.  Uganda, 
bold  (air  to  good  palish,  changed  hands  at  102s.  6d.  to  112s.  6d.  ; 
extra  bold,  12OS.  6d.  Nairobi,  bold,  fair  to  good,  iios.  to  125s. 
Futures  quite  idle  and  nominal. 

Cocoa  in  steady  request  at  graded  prices,  but  offers  are  still 
sparingly  made. 

Si'tCE. — Pepper  market  firm,  and  there  is  a  steady  trade  passing. 
Fair  black  Singapore,  spot,  buyers,  is.  sfd.  ;  Tellicherry  sold  at 
IS.  6jd.  ;  Aleppy,  is.  6d. ;  white  Singapore,  2S.  6Jd.  ;  and  Muntok, 
2S.  8d.  Fair  Zanzibar  cloves,  spot,  sellers,  2s.  jd.  ;  and  fair  flake 
tapioca,  buyers,  yjd.  per  lb.  Auctions  went  firmly.  Eastern  nut- 
megs being  rather  dearer.  67's  sold  at  3s.  4d. ;  108's,  2s.  5d.  ;  and 
Singapore  97's  at  2S.  yd.  Nyassaland  chillies,  sold,  98s.  to  loos.  ; 
and  ditto  capsicums,  mid  dark,  62s.  6d. 

Vanilloes. — At  public  sale  a  fair  assortment  was  offered. 
Good  to  fine  sorts  realised  firmer  prices,  ordinary  being  steady, 
but  foxy  descriptions  generally  is.  down  compared  with  previous 
auctions. 

Shellac. — Only  retail  sales  are  passing  on  the  spot  on  the  basis 
of  3353.  for  fair  free  second  orange. 

Rubber. — Trading  was  on  a  limited  scale,  and  tendency  barely 
steady.  Plantation  crepe,  spot,  sold  at  2S.  24d.  to  2s.  t^d.  ;  June, 
2s.  2jd.  to  2s.  2|d.  and  2S.  2jd.  ;  July,  2s.  3d.,  2s.  3jd.,  and  2s.  2|d. ; 
July-December,  2s.  3fd.  to  2s.  4d.  and  2s.  3jd.  ;  October-Decem- 
ber, 2S.  4jd.  to  2s.  4jd.  and  2s.  4jd.  Smoked  ribbed  sheet,  spot, 
2s.  ijd.  to  2s.  ijd.  ;  July-December,  2s.  3d.  to  2s.  2jd.  Fine 
hard  Para,  spot,  3s.  ijd.;  soft  fine  ditto,  3s.  id.;  and  ball,  at 
IS.  8id.  per  lb. 

Corn  (Mark  Lane). — Steadiness  characterised  movements  at 
market  this  week,  though  the  volume  of  trade  passing  showed  no 
appreciable  e.xpansion,  offers  being  still  on  a  limited  scale. 
'  English  wheat  sells  at  the  Controller's  limit,  while  business  in 
imported  descriptions  was  again  confined  to  leading  Canadian 
qualities.  No.  i  Northern  Manitoba  sold  at  82s.  4jd.  ;  No.  2  ditto, 
80s.  gd.  Australian  quoted  85s.  6d. ;  No.  2  Calcutta,  87s.  ;  and  La 
Plata,  82s.  7id.  Flour  continues  in  fair  supply,  with  G.R.  quoted 
at  44s.  3d.  e.x  mill,  and  imported  makes  ranging  from  50s.  3d.  to 
51s.  3d.  per  280  lbs.  landed.  Barley  remains  cut  of  supply. 
Oats:  American  white  clipped,  6is.  6d.  to  62s.  6d  ;  and  Canada 
Western  No.  2  sold,  63s.  6d.,  landed  terms.  Maize  sparingly 
offered.     American  mixed,  8is.  3d.,  landed  terms. 

Cotton  (from  our  Manches'.er  correspondent). — The  condit:ons 
prevailing  in  ti  e  market  during  the  past  week  have  not  been  at  all 
favourable  to  an  active  business  being  done,  and  until  the  pro- 
[  spects  are  clearer  there  is  little  probability  cf  freer  operations. 
fThe  further  restriction  of   output  and    the  wages   advance   have 
I  upset   the  ordinary   methods  of  calculating   prices  of   yarn  and 
]  cloth,    and    sellers    who    have    been    in  doubt   as    to    what    to 
[quote    have    erred     on    the     top     side    if    at    all.       Numerous 
firms    are   refusing    for    the    time     being     to     give     out     quota- 
I  tions    of    any   kind   whatever.      In     the    circumstances   negotia- 
'  tions     have    been    carried     on     under     great     difficulties,    and 
business  has  only  transpired  where  buyers  have  found  it  impos- 
!  sible  to  delay.       Crop   advices  from   the   United   States  remain 
very  healthy,  and  there  is  the  expectation  of  an  excellent  Govern- 
ment report  ne.xt  week.     The  inquiry  in  cloth   for   abroad  has  not 
1  been  at  all  important.     Fair  scattered  sales  have  been  put  through 
for  India,    chiefly  in  bleaching  descriptions,  and   advices   from 
Bombav   are   better  than  those  from   Calcutta.      The    monsoon 
:  season  has  now  started  in  our  Dependency,  and  news  relating  to 
the  rains  is  awaited  with  considerable  interest.     Offers  for  China 
have    been    very    scarce,    but    rather    larger    operations    have 
been  reported  for  Singapore,  Java,  and  the  Straits  Settlements. 
Egypt  remains  quieter.     A   fair  business  has  been  about  for  South 
America.     Encouraging  reports  continue  to  be  received  from  the 
;  home  trade,  the  chief  difficulty  of  the  distributing  houses  being 
.  to  secure  adequate  supplies  of  goods.     Prices  in  all  kinds  of  yarn 
i  have  tended  to  harden.    Business  has  been  checked  by  the  higher 
rates  and  the  scarcity  of  supplies.     Spinners  of  both  American  and 
[Egyptian  qualities  continue  to  enjoy  a  very  wide  margin  of  profit. 


American  Business  Notes. 

We  realise,      in  watching   America,   how  dictatorial    a  demo- 

Icratic    C-overnnient   can    be    in   a   time    of    emergency,    and   the 

[action   of    Mr.    McAdoo    in   raising    railway   rates    and,   at    the 

[same    time,   putting  up    wages    of   railwaymen   to  the    tune  of 

|;f30,ooo,ooo  affords   an  impressive  lesson  of   vigorous  initiative 

fin   administration.     Here  we  should  have  had  endless  discus- 

jsion  and   dispute  before  a  step  could  be  taken.     In  the  United 

|.States   the   question  is  investigated   quietly,   and   quietly   settled 

|without  fuss,   and,  we  infer,  without  serious  protest.      It  is,  in- 

Ideed,  -useless  to  protest,   for   the  Government   holds  the  country 

Jin  the  hollow  of  its  hand,  and   no  one  will  venture   to   dispute 

tits  decisions  while   the  world   emergency   lasts.     On   the  whole, 

Itoo.  the  railways  cannot  complain,  for  they  are  not  in  a  weak 

tfinancial  position,   and   we  scarcely  ever  look  into   the  accounts 

pf  any    one   of   them    without    finding    evidence   of    prosperity. 

t.ook   at  that   but    lately    distressful    corporation,   the    Missouri 

Pacific.     Its  first   annual    reptirt   since  reorg.inisation   has  been 

issued,   covering  seven  morrths   to  the   end  of  last   year,   and    it 

■hows     a    .surplus    of     ;?6.6i8.ooo,    after     paying     working    ex- 

enses    and   debt    interest.      For    the   entire    calendar    year   the 

arplus    was    $S,()66,oo(),    after    dihbursing    $i3,335,oocs    chiefly 

fas  intere.st  en  the  company's  funded  debt. 

A  prosperous  ro.ad  like  the  Delaware  and  Hudson  also 
jshows  a  comfortable  position,  for  in  11)07  it  could  display  a 
lst\rplus  of  $i,i6S.ooo.  after  payins  all  interest,  rentals.  ,nnd 
Idthef  preferential  demands  and  a  dividend  of  q  per  rent,  on 
lits   stock.       The  previcus   year  the  .surplus   was  only  .'^333,000. 


This  sort  of  prosperity  cannot,  perhaps,  be  called  evidence  of 
profiteering,  but  in  other  directions  there  is  ample  proof  that 
some  people  have  been  making  too  much  mone.y  out  of  the 
crisis. 

Here  is  the  International  Harvester  Co.,  for  instance,  pay- 
ing a  7  per  cent,  dividend  for  191 7  on  both  its  preferred  and 
common  stocks  with  19,110,000  left  over.  In  1916  and  the 
two  years  before  that  a  5  per  cent,  dividend  only  was  paid 
on  the  common  stock,  and  the  largest  surplus,  that  for  1916, 
was  $6,582,000,  while  for  1914  it  was  only  $3, 363, 000.  More- 
over, $1,514,000  was  last  year  set  aside  to  plant  depreciation 
reserve,  and  altogether  the  various  reserves  got  $3,726,000, 
which  was  quite  $400,000  above  the  average  assignment  for 
the  previous  three  yeats. 

Copper  mining  also  tells  a  suggestive  story  of  great 
prosperity.  The  Anaconda  Co.,  for  example,  at  the  head  of 
which  is  Mr.  John  13.  Ryan,  had  a  surplus  for  last  year  of 
$14,518,000,  after  paying  the  17  per  cent,  dividend  on  its 
shares.  As  recently  as  1915  the  dividend  was  only  8  per  cent., 
and  the  surplus  $7,371,1x30,  after  that  was  paid.  The  same 
dividend  for  1914  could  only  be  paid,  at  the  cost  of  a  deficit  of 
$288,000,  whereas  in  1916,  so  sudden  and  overwhelming  was 
the  rush  of  profits,  that  there  was  $33,344,000  left  after  a  15 
per  cent,  dividend  h.ad  been  paid.  Can  any  shareholder 
grumble  .seriously  if  Mr.  Wilson's  administrati.m  steps  in  and 
says,  "  In  this  emergency  I  want  all  your  surplus  over  and 
above  the  8  per  cent,  paid  before  we  entei-ed  the  war," 

Another  copper  company  is  the  I'tah,  which  paid  127J  per 
cent,  in  dividend*  for  1917,  and  gave  back  in  addition  17J  per 
cent,  capital,  or  in  all  145  per  cent.,  besides  putting  aside 
$5,015,000  as  reserve  against  taxation.  Should  not  these 
profits  be  handed  over  to  the  Government  instead  of  being 
distributed  to  the  shareholders  at  the  cost  of  an  increase  in 
the  debt?  Will  the  spirit  of  self-sacrifice  amongst  the  Ameri- 
can people,  in  other  words,  cheerfully  submit  to  the  surrender 
of  all  kinds  of  unusual  gains  in  order  that  the  load  may  be 
less  which  their  children  after  them  will  have  to  shoulder? 
Debt  and  waste  invariabi}'  go  hand  in  hand,  and  one  of  the 
chief  causes  of  the  appalling  consumption  of  our  borrowed 
wiealth  from  time  to  time  revealed  by  incidents  and  investiga- 
tions is  that  the  money  seems  to  the  spenders  to  cost  nothing. 
Nobody  finds  it,  and  its  waste  does  not  in  appearance  injure 
the  individual.  It  merely  goes  to  swell  the  debt.  "  A  tax 
on  luxuries"?  But  that  is  trifling  with  the  country's  necessi- 
ties and  the  danger.  We  must  listen  to  Mr.  Wilson,  and 
imitate  him  without  wasting  time  in  Parliament  wrangles  and 
mouthing  about  our  "  patriotism."  The  real  patriot  is  the 
man   who   makes  sacrifices  and    pays  up. 

It  is  satisfactory  to  learn  that  ships  aggregating  over  100,000 
tons  were  launched  in  the  United  States  last  week.  Actualh' 
18  vessels,  15  steel  and  three  wood,  were  put  into  the  water 
with  a  total  tonnage  of  109,700,  which  is  at  the  rate  of  well  over 
5,000,000  tons  a  year.  In  all  30  steel  ships  and  25  wooden  ships 
were  launched  in  the  first  25  days  of  May.  The  rate  of  produc- 
tion is  showing  a  steady  and  consistent  increase  with  each  week 
and  each  month,  though  many  shipyards  have  not  yet  really  got 
under  way.  At  this  rate  we  shall  soon  make  good  a  considerable - 
proportion  of  the  losses  caused  by  the  piratical  U-boats. 


FARROWS  BANK  LIMITED 


Authorised    Capital 
Shares    issued 
Shareholders 


£1,000,000 

700,000 

4,000 


At]  descriptions 
of  Banking  busi- 
ness, iDcluding 
the  collection  of 
Bills,  DiviJends, 
Annuities,     etc., 

transacted. 
Foreign  Money 
exchanged  and 
Drafts  isiued  to 
all  parts  of  the 
World. 


Chairman  : 
Mr.     THOMAS     FARROW. 

EVERY   D^CRIPTION 

OF  JOINT-STOCK 
BANKING  JRANSAGTEO 

Foreign  Banking  business  of 
ail  descriptions  undertaken. 

Agents  throughout  the  IVorld 


Strong  Rooms  for 
the  safe  custody 
of  deeds  and  other 
property  provided 
for  the  use  of  the 
Bank's  customers 

Stocks  and  Shares 
bought  and  sold 
on  behalf  of  cus- 
tomers and  the 
public    genera'ly. 


HEAD      OFFICE:      1,      CHEAPSIDE,      LONDON,     E.G.  2 

Branches  throughout  tha  United    Kingdom.      A  H  &:  co. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its   Policyholders  in    1917  over 

£9,T00,000 
or  over  S3 1,000  for  each  Working  Day- 


534 


^be  Jnvestors'  IRevtew. 


Jlne  I,  1918. 


The  Week  in  Minos. 

The  renewal  of  the  German  offensive  has  had  the  effect  of 
restricting  business  in  the  Mining  markets,  and  with  a  few 
exceptions  the  tendency  has  been  generally  dull.  Uianiond 
shares  have  been  supported  on  reports  that  there  is  a  good 
demand  for  stones  on  Kast-End  account.  Another  strong  feature 
has  been  the  Broken  Hill  group,  particularly  Proprietary's  on 
the  decision  of  the  directors  to  capitalise  ^1,500,000  of  the  un- 
distributed profits. 

South  and  West  Akkicans. 

The  South  African  market  after  showing  a  firm  tendency 
weakened  under  several  adverse  influences.  A  short-lived  strike 
at  the  Randfontein  Central  caused  the  market  to  remember  that 
the  Rand  is  not  without  its  labour  discontent,  and  the  reflection 
was  emphasised  later  by  a  report  that  the  miners  are  asking  for 
£8  weekly,  which  would  involve  an  addition  of  ;f  40,000  monthly 
to  the  miners'  wages  bill,  and  entail  the  closure  of  several  low- 
grade  properties.  City  and  Suburbans  have  been  on  offer,  and 
are  5-32  lower  at  U,  while  City  Keeps  have  relapsed  i  to  3  1-32, 
Gofd  Mines  Investments  is.  to  22s.  6d.,  Modder  U  i  to  7I, 
Kleinfontein  is.  to  17s.,  and  Central  Minings  i  to  5J.  New 
Modders  after  rising  to  23^  fell  back  to  22J.  Wit  Deeps  have 
improved  slightly  to  7s.  6d. ;  at  the  meeting  at  Johannesburg 
considerable  opposition  developed  against  the  board,  and  a  poll 
was  demanded  by  the  Shareholders'  Society.  It  is  rumoured 
there  that  the  Central  Mining  Corporation  will  surrender  con- 
trol to  the  opposition,  but  this  would  involve  apparently  the 
calling  in  of  a  loan  of  ;,f25,ooo.  Springs  Mines  are  better  at 
3  25-32  despite  criticism  of  the  Springs  West  arrangement,  a 
cash  dividend  being  asked  for  instead  of  options.  In  the 
Rhodesian  section  Chartereds  have  declined  gd.  to  15s.  3d., 
Rezendes  i  to  4^,  and  Shamvas  i  to  if§,  but  Cam  and  Motors 
have  been  supported  at  about  12s.  gd.  and  Wankies  at  14s. 
Diamond  shares  show  a  general  advance ;  De  Beers  deferreds  at 
'3A  a"d  Premier  deferreds  at  6J  are  both  i  higher,  and  the 
prefs.  are  also  i  to  -^  higher.  West  Africans  have  been 
neglected. 

Copper  and  Miscellaneous. 

Apart  from  a  fall  of  ^  to  66  in  Rio  Tinto,  copper  shares  show 
little  movement.  Tin  shares  have  weakened  owing  to  the  fall  in 
the  price  of  the  metal,  and  Cornish  descriptions  have  been 
affected  by  the  acute  shortage  of  labour.  South  Croftys  have 
declined  2s.  to  52s.  6d.,  and  various  other  shares  show  slight 
falls.  Broken  Hills  have  been  active  and  buoyant,  especially 
Proprietarys,  which  are  5s.  gd.  higher  at  71s.  6d.  ex  dividend 
on  the  capital  bonus  scheme.  It  is  calculated  that  the  current 
price,  plus  the  payment  of  40s.  for  the  new  shares,  represents 
about  45s.  for  each  of  the  2,100,000  shares  to  be  issued.  The 
company's  profits  are  at  present  equal  to  25  per  cent,  on  the  new 
.apital.  British  Proprietarys  have  risen  2s.  to  49s.  6d.,  but  have 
actually  been  higher  than  this.  Norths  at  3  5-32',  Souths  at 
iii,  and  Zinc  Corporations  at  25s.  are  all  appreciably  higher. 
Elsewhere  a  notable  incident  has  been  the  weakness  of  Mexico 
of  El  Oros,  which  have  fallen  •,%  to  5,^. 


MINING  NEWS. 


West  African  Gold  Output. — In  April  the  production 
of  gold  was  /n7,52o,  or  /4,9i5  more  than  in  March,  but 
^6,305  less  than  in  April  last  year.  The  following  table  shows 
the  monthly  production  since  January,  1914. 


Month. 

1918. 

1917. 

1916. 

1915. 

1914. 

Jan.     . . 
Feb.     .. 
Mar.    .. 
April    .. 
May     .. 
I  une    . . 
July     .. 
Aug.     . . 
Sept.    .. 
Oct.     . . 
Nov.    .. 
Dec.     .. 

107,863 
112,665 
112,60; 
117,520 

131,665 
104,892 
158,727 
123,825 
121,104 
114,489 
142,017 
130,278 
127,168 
126,295 
126,915 
122,602 

£ 
140,579 
137,739 
150,987 

135,976 
132,976 
127,107 
128,574 
125,143 
127,138 
132,577 
130,101 
146,409 

143.649 
144,034 
153,770 
149,978 
142,123 
135,289 
140,290 
139,364 
135,744 
141,771 
122,138 
158,323 

128862 
123,169 
131,392 
131,697 
145,227 
■47,289 

I5',921 
150,386 
154.316 
159,410 
154,674 
147,699 

Totals 

450,853 

1,529,977 

1,615,306 

1,706,473 

1,727,044 

Rhodesian  Mineral  Output.— The  production  of  gold  in 
April  shows  a  recovery,  the  total  being  ;f 239,916,  an  increase  of 
/9,893.on  March,  but  a  decrease  of  ;f58,o6i  on  April  last  year. 
The  following  table  shows  the  production  since  January,  1914  : — 


Rhodesia  Copper  anu  General  Exploration. — The  accounts 
for  the  period  from  June  1,  1917,  to  March  31  last  show  a 
profit  of  ;^6,7o6,  and  a  total  available  bala.ace  of  ;£8,403. 
Owing  to  depreciation  in  the  value  of  some  of  the  company's 
interests  no  dividend  is  recommended.  The  financial  position 
discloses  a  deficiency  of  ;^88,ii4  on  liabilities  amounting  to 
^^280,075.  Of  this  deficiency,  ^59,344  is  due  to  depreciation  in 
investments.  It  is  proposed  to  write  off  the  whole  of  the 
deficiency  by  reducing  the  capital  from  £35^,793  to  £2/ii,^^^ 
by  writing  off  is.  6d.  per  share.  The  new  capital  will  be 
divided  into  1,585,126  shares  of  3s.  each  and  16,828  shares  of 
4s.  6d.  each. 

Lothian  Coal. — A  heavy  shrinkage  in  profits  is  recorded  by 
this  colliery.  Nett  profits,  after  providing  for  war  taxation, 
decreased  from  ;f89,7oo  to  .1^59,300,  and  the  dividend  is 
reduced  from  25  to  15  per  cent.,  tax  free.  Last  year  j{^io,ooo 
was  placed  to  reserve,  but  on  this  occasion  nothing,  was  trans- 
ferred to  this  fund,  but  the  carry  forward  is  raised  from 
;^2o,ioo  to  ;f 32,800. 

Broken  Hill  Proprietary  Block  Ten.— Operations  during 
the  half-year  ended  March  31  resulted  in  a  nett  profit  of 
;^27,872  against  ^^28,613  in  the  previous  six  months  and  ;^2i,i36 
in  the  six  months  ended  March  31,  1917.  The  profit  is  arrived 
at  after  writing  off  ;ts,i74  for  plant  depreciation.  The  sum  of 
;^io,ooo  has  again  been  distributed  in  dividends,  and  there 
remains  a  credit  balance  to  be  carried  forward  of  ;^ioi,o63 
against  ;f83,i9o  brought  in.  Liquid  assets  in  excess  of  liabili- 
ties amount  to  ;^io5,822  against  ^(^93,428  six  months  previou.sly. 
Broken  Hill  Block  14  Co. — During  the  half-year  ended 
March  31  operations  resulted  in  a  nett  profit  of  ^SA^?!  which 
included  a  first  dividend  on  the  holding  of  King  Island 
Scheelite  Co.'s  shares,  amounting  to  ;f2,ioo.  This  compares 
with  ;^2,329  in  the  previous  six  months.  Liquid  assets  in 
excess  of  liabilities  amount  to  ^'48,827. 

HuTTi  (Nizam's).— A  serious  falling  off  in  output  is  recorded 
by  this  Indian  gold  mine  for  1917,  owing  to  failure  to  discover 
a  satisfactory  deposit  of  high-grade  ore.  Production  decreased 
from  ;f 71,691  ta  £s,o,yoi,  and  the  profit  fell  from  ;f  13,980  to 
;^3,426.  Shareholders  who  last  year  got  10  per  cent,  will 
receive  no  dividend  this  year,  as  the  directors  desire  to  con- 
serve casih  resources  for  the  purpose  of  developing  the  bottom 
of  the  mine.  The  ore  reserves  have  decreased  from  31*450  tons 
to  18,760  tons. 

Edinburgh  Collieries. — The  profit  balance  for  1917  was 
^^51,512,  as  compared  with  ;ifio8,o78.  After  writing  off  ;^25,ooo 
for  depreciation,  it  is  proposed  to  pay  a  final  dividend  of 
3^  per  cent.,  making  7^  per  cent,  for  the  year,  tax  free,  and 
to  carry  forward  ;^26,667  against  ;f3o,i53.  For  igi6  the  divi- 
dend was  17^  per  cent. 

Mount  Boppy. — This  once  prosperous  mine  has  fallen  upon 
lean  times.  Milling  was  discontinued  early  in  February,  191 7, 
and  the  result  was  a  debit  balance  for  the  year  of  ;Jio,o7o. 
Including  the  debit  brought  forward,  a  total  debit  of  £i6,SSo 
is  shown.  The  new  shaft  having  been  completed,  milling  wa.s 
resumed  in  January  last,  and  though  a  heavy  strain  has  been 
placed  on  the  company's  capital  resources,  it  is  believed  that 
profitable  results  will  soon  be  obtained. 

DURBAN-ROODF.POORT  GOLD. — The  report  for  191 7  states  that 
the  tonnage  crushed  amounted  to  166,529  tons,  and  the  nett 
profit  was  ;^i5,47i  against  ;^23,657.  Dividends  amounting  to 
15  per  cent,  have  been  paid  against  20  per  cent.,  while  the 
balance  carried  forward  has  been  reduced  from  ^^20,798  to 
^17,229.  The  mine  is  now  nearing  its  end,  practically  all 
payable  blocks  of  ground  having  been  worked  out.  For  the 
remainder  of  the  life  of  the  mine  all  ore  will  be  obtained  from 
the  reclamation  of  old  pillars.  It  is  estimated  that  about 
50,000  tons  will  be  procured  from  this  source  as  from  January  1 
last. 

Lahat  Tin. — In  191 7  452  tons  of  tin  ore  were  sold  against 
438  tons  in  1916.  But  the  amount  realised  was  ;^ 59,335  against 
;^47,558,  equal  to  ;^i3i.27  per  ton  against  ^ioS.58  per  ton. 
After  providing  for  depreciation  the  nett  profit  was  ;f7,75o 
larger  at  ;^25,o89.  The  reserve  gets  ;^7,ooo,  or  ;^2,ooo  more 
than  last  year,  and  the  shareholders  get  3s.  per  share,  or  2S. 
more,  by  the  pajTnent  of  a  final  dividend  of  2%  per  cent., 
leaving  ^^3,633  against   £3,-,44  to  be  carried  forward. 

Scottish  Aistr.alian  Mining. — The  profits  for  1917  were 
^^13,696  against  £7,376.  A  final  dividend  of  2%  per  cent, 
brings  the  distribution  up  to  5  per  cent,  against  3^  per  cent., 
while  the  carry   forward  is  raised  from  ^'1,463  to  ^2,659. 


Month. 


1914. 


January  ... 
February    . 

March 

April    

Nlay 

June 

July 

Au£U6t 

September, 
October  . . . 
November . 
Uecember  . 


Totals. 


£ 
249,039 
959,888 
973,236 
995.907 
990,062 
306,421 
320,670 
316,972 
309,398 
337,241 
311,711 
309,669 


3,580,207 


1915. 


£ 
293,133 
286,789 
299,686 
315,541 
318,898 
392,473 
336,565 

344,493 
391,085 
339.967 
313.160 
331,376 


3,823,166 


1916. 


31^586 
313,769 
335,368 
339,386 
323,783 
333,070 
322,365 
338,001 
322,035 
325,608 
317,135 
306,205 


3.895,311 


1917. 


296,113 
289.734 
300,183 
297,977 
999,271 
302,195 
288,731 
294,3^9 
991,367 
989,978 
975,830 
270,616 


3,495,353    955,769 


igi8. 


£ 

«53,807 
239,093 
230,023 
239,916 


The  number  ol  producers  was  148,  or  6  more  than  in  March, 
and  the  output  of  other  metals  was  16,358  ounces  of  silver,  41,093 
tons  of  coal,  312  tons  of  copper,  570  tons  of  asbestos,  917  tons 
of  chrome  ore,   and  10  carats  of  diamonds. 


Tea,  Oil  and   Rubber. 

There  has  been  a  steady  shrinkage  in  the  rubber  share  market 
throughout  the  week,  and  for  the  first  time  in  many  month.= 
selling  has  been  more  prominent  than  the  steady  absorption  of 
shares  by  speculative  investors  through  evil  and  good  report. 
Very  possibly  the  swing  of  the  penduljyn  will  carry  the  move- 
ment too  far — that  almost  invariably  happens — and  the  solid, 
sound  industry  which  has  been  established  might  well  pray  to 
be  saved  from  its  "  friends."  These  enthusiasts  would  insist — 
and  many  of  them  are  still  vociferously  arguing — that  the  price 
of  rubber  should  be  nearer  59.  than  3s.,  and  that  in  a  few 
months,  or  a  year  at  the  outside,  there  will  be  such  a  famine  as 
may  repeat  the  boom  experience  of  1909-10.  These  people  are 
doing  the  industry  a  very  serious  disservice,  because  it  is  patent 
even  to  the  most  casual  observer  that  the  glut  of  production  has 


June  i,  1918. 


ttbe  Jnvestots'  IReview. 


535 


become  really  serious.  It  may  be  partly  due  to  shortage  of  ship- 
ping facilities  and  the  restrictions  which  have  had  to  be  im- 
posed both  here  and  in  the  United  States,  but  that  is  only  a 
very  narrow  view  of  the  situation.  Neither  the  United  States 
nor  ourselves  are  going  to  create  an  artificial  famine  in  such  an 
essential  war  commodity,  and  if  we  can  afford  to  put  an  embargo 
on  imports  it  is  a  safe  infereiice  that  supplies  are  fully  equal  to 
requirements.  In  the  meantime  the  trees  themselves  can  be 
utilised  (often  to  their  advantage)  tor  storage  accommodation, 
and  the  "  compulsory  "  curtailment  ol  20  per  cent,  in  production 
{affecting  about  one-third  of  the  total  plantation  output)  will 
have  to  be  carried  much  farther  whether  the  companies  like  it 
or  not.  On  the  other  hand,  it  must  be  remembered  that  when- 
ever sufficient  freight  becomes  available  most  of  the  older  estates 
can  increase  their  production  enormously,  and  with  young  com- 
petitors coming  into  the  field  month  by  month  they  will  pro- 
bably be  compelled  to  market  their  produce  in  self-defence. 
There  are  so  many  cross-currents  at  work  that  it  is  impossible 
to  forecast  the  future  with  any  confidence,  but  for  the  time 
being  prices  steadily  recede.  Standard  crepe  is  only  about 
2S.  2d.  in  London,  and  it  is  is.  6d.  or  less  in  Singapore,  but 
what  the  upshot  inay  be  we  are  quite  willing  to  leave  the  future 
to  decide. 


RUBBER  RESULTS  IN  BRIEF. 


I 


AyetKuning(F.M.S.)  ..(Dec.) 

Do Prev 

BatangMalaka (Dec.) 

Do Prev 

Battalgalla  Estate  (Dec.) 

Do Prev. 

Bukit  Panjong (Dec.) 

Do Prev. 

Edinburgh  Rubber (Dec.) 

Do Prev 

Gedong  (Perak) (Oct. 

Do Prev 

'General  Ceylon  (Dec.) 

Do Prev. 

Golconda  Malay (Dec.) 

Do Prev. 

Kajang    (Dec.) 

Do Prev. 

Kuala  Selangor   (Dec.) 

Do Prev 

Lavant  Rubber  &  Tea  . .  (Dec.) 

Do Prev. 

Langkat  Sumatra    (Dec.) 

Do Prev 

Riverside  (Selangor)  -, .  .(Dec.) 

Do Prev. 

'Scottish  Malay (Dec; 

Do Prev, 

'South  Perak (Nov.) 

Do Prev. 

"SungeiBatu (Dec.) 

Do Prev, 

Sungei  Rinching (Dec.) 

Do Prev 

Tenom  (Borneo) (Dec.) 

Do Prev. 

Windsor  (F.M.S.) (Dec.) 

Do Prev. 

Woodend  (Ceylon) (Dec.) 

Do Prev. 


Output.  Av 'rage    All-in 
Lbs.      Price.      Cost. 


825,100 
7^4,450 
318,000 
296,500 
349.900 
438,600 
532,460 


492,600  2/5.52d. 

446,200  2/3. 53d. 

426,360  2/6.68d 

277,500  2/4.84d 


183,600 
r,o85,500 
902,000 
596,100 
585,450 
390,700 
260,700 
631,000 
623,300 
232,000 
246,500 
448,000 
5oo,oco 
372,000 
405,520 
613,850 
536,000 
69,400 
43,240 
286,600 
236,000 
308,000 
184,240 
600,000 
571,400 
404,200 
276,200 
256,850  I 
188.100 


2/4.7'>d 
2/8.6od 
2/4d 
2/8d, 
58.85c 
63.140 
2/2  02d 


2/8.4id. 
j/io.75d. 

2/3'72d. 

2/i.94d. 
2/6. 67d. 
2/3. 85d. 
2/8.34d. 

2/1. 4d. 

2/6.5d. 
2/2. 09d. 
2/5. 23d. 
2/4d. 
2/8.23d. 
2/l.68d. 
2/5.65d. 

2/[.27d. 

2/6.45d. 
2/2.6id. 
2/4. l8d. 
2/4.35d. 
2  6.r4d. 
2/1. 29d. 
2/5.42d. 
2/1. 56d. 
2/4.75d. 

2/4- 39^' 
2/4.59d. 
[/ii,72d. 
2/6.35dJ 


t/o.38d. 

i;o.34d. 
l/o|d.» 
io|d,  ' 


i/i.6od 
i/o.45d, 

9.3id. 

9.i4d. 
I/o.64d. 
l/l.75d. 
io.76d.^ 

I0.25d.'' 

10.63d, 

I0.J2d. 

i/4.43d. 

l/3.84d 
8.5d 
9.3d' 


i/o.58d 
li.57d, 
10.13d, 
lo.sod 


l/4,i7d. 
1/3  5od. 
i/5.o6d. 
l/5.96d. 
i/3.o6d. 
ii.gSd. 
1/3. i8d. 
1/4. lod, 
10.63d.* 
9.6od.*i 


Nett 
Profit. 


57,000 
61,100 
12,980 
18,920 
2,420 
7,320 
21,600 
35,200 
32,000 
38,820 
20,180 
14,480 
34,830 
67,320 
38,000 
50,100 
11,020 
17,880 
44,840 
50,980 
9,990 
12,850 
17,900 
27,550 
21,290 
31.47" 
39,985 
45,500 
600 
150 
15,400 
15.000 
10,800 
7,290 
26,750 
40,540 
22,680 
15,050 
13,490 
15,810 


Div. 

% 


15 
15 
15 
15 
25 
50 
60 
15 
15 
20 
25 
35 
45 
15 
10 

I33»i 

150 
10 
14 
15 
32^ 
20 
35 
40 
60 


12i 

15 
15 
15 
12^ 


■7» 

12 
27 


Carried 
Forw'd. 


37.200 

28,330 

22,840 

17,650 

3,940 

7,100 

20,310 

19,410 

13,870 

16,240 

10,700 

1,100 

30,310 

38,500 

6,980 

7,840 

8,130 

9,540 

11,180 

17,200 

660 

875 

7,940 

2.880 

6,220 

1.160 

20,700 

3,120 

745 

150 

820 

2,000 

910 

1,420 

15,200 

20  140 

3,100 

3,220 

13,700 

9,200 


*  Cost  f.o.b. 

LiNGGi  Plantations,  Lid. — Year  to  December  31.  Issued 
•capital  ;^ii5,ooo  in  2S.  ordinary  and  ;^io,ooo  ;^i  preference 
shares.  Reserves  ;!;^443,8oo.  Output  2,553,(>oo  lbs.,  an  increase 
of  375,000  lbs.  ;  average  price  2s.  3.73d.,  against  2s.  6.68d. ; 
.all-in  cost  is.  2.32d.,  against  is.  o.sod.,  more  than  half  the  in- 
crease being  due  to  freight  and  insurance.  Net  profit  ;f  143,140, 
a  decrease  of  ;^2o,ooo,  and  the  amount  brought  in  was  only  a 
trifle  larger.  Consequently  the  dividend  is  reduced  from  140 
per  cent,  to  116^  per  cent.,  of  which  66^  per  cent,  has  been 
paid  as  interim,  leaving  _^6,8oo  more  at  ^^26,000  to  be  carried 
forward.  The  planted  area  is  now  8,648  acres,  of  which 
■6,760  were  in  bearing  last  year,  and  including  the  estate  re- 
cently purchased  at  Lyang,  the  reserves  amount  to  10,700  acres. 
Originally  the  output  for  the  current  year  was  estimated  at 
3,000,000  lbs.,  but  this  has  been  cut  down  to  2,026,000  lbs. 
During  last  year  the  holding  of  rubber  shares  was  considerably 
reduced,,  and  the  proceeds  invested  in  War  Loans,  the  profit 
■of  ;^22,ooo  realised  being  carried  to  reserve.  It  will  be 
observed  that  the  company  is  in  an  exceptionally  strong  finan- 
cial position,  and  with  its  large  reserve  area  it  is  exceptionally 
iavourably  situated. 

London  Asiatic  Rubber  and  Produce  Co.,  Ltd. — Year  to 
December  31.  Capital  ^160,000  in  2s.  shares.  Reserve 
jfi3i,ooo.  Output  1,569,000  lbs.,  increase  84,000  lbs.  ;  average 
price  2s.  6.2cd.,  against  2s.  5.36d. ;  all-in  cost  is.  5.27d.,  against 
IS.  2.24d.  Gross  receipts  ^igofioo,  increase  ;^i3,ooo;  nett 
profit  ;^9i,93o,  decrease  ;^6,ooo.  At  the  end  of  1916  ;^46,ooo 
■was  carried  forward,  but  excess  duty  for  two  years  had  to  be 
deducted  from  this,  and  the  nett  amount  brought  in  was  ;/^8,ooo 
less  at  ;^i2,25o.  Consequently  the  dividend  is  reduced  from  45 
per  cent,  to  40  per  cent.,  and  the  balance  forward  is  ^40,300, 
subject  to  excess  duty,  which  is  estimated  at  ;^2o,ooo.  The 
planted  area  is  4,840  acres,  and  there  are  1,950  acres  in  reserve, 
so  that  with  its  very  substantial  liquid  resources  the  company 
is  in  a  strong  position.  Output  for  the  current  year  is  esti- 
mated  at  only   1,250,000  lbs.,   and,  of  course,  there  must  be  a 


relative  increase  in  the  cost  of  production,  but  this  is  a  tem- 
porary phase  which,  we  hope,  will  soon  pass. 

Rubber  Estates  of  Johore,  Ltd. — Year  to  December  31. 
Capital  ;,^i25,ooo  in  £1  shares.  Reserves  ^^42,300.  Output 
682,500  lbs.,  decrease  40,000  lbs. ;  average  price  2s.  S-yyd., 
against  2s.  6.3id.  ;  all-in  cost  is.  3.64d.,  against  is.  o.Qod. 
Nett  profit  jf43,ooo,  a  decrease  of  ;^9.5oo,  and  as  jf 6,000  less 
was  brought  in,  the  balance  available  is  down  ;£i5,5oo.  How- 
ever, the  dividend  is  maintained  at  20  per  cent.,  and  the  carry 
forward  is  reduced  by  the  amount  mentioned  to  ^^29,140.  Ex- 
cess duty  for  1915  and  1916  amounted  to  ;^33,6oo,  and  for  1917 
it  is  estimated  at  ;^i9,ooo,  so  that  it  is  well  covered  by  the  sum 
carried  forward.  The  cultivated  area  is  1,912  acres,  all  of 
which,  except  about  100  acres,  were  planted  between  1907  and 
1909,  but  the  estimated  output  for  the  current  year  is  put  at 
only  577,800  lbs.  There  are  now  2,920  acres  in  reserve,  9,900 
acres  having  been  sold  during  the  year  for  ^^44,250.  It  is 
hoped  to  plant  no  acres  this  year,  and  a  further  300  acres  will 
be  felled  for  future  planting.  The  company  has  plenty  of 
liquid  assets  for  this  programme. 

Bila  (Sumatra)  Rubber  Lands,  Ltd. — It  would  have  been  too 
much  to  expect  that  the  plantation  rubber  industry  could  have 
been  established  without  producing  a  certain  percentage  of 
"  lame  ducks,"  but  the  number  has  been  much  smaller  than 
might  have  been  anticipated.  The  directors  of  this  company 
have  taken  the  right  course  in  facing  the  position  boldly.  The 
purchase  price  was  ;^ 90,000,  and  development  expenditure,  less 
receipts,  has  brought  it  up  to  ^150,400,  while  preliminary 
expenses  stand  at  ;^8,65o,  and  there  were  creditors  at  August  31 
last  for  ;,f4o,7oo.  War  conditions  have  undoubtedly  hampered, 
and  the  immediate  prospects  are  far  from  bright.  It  has  there- 
fore been  decided  to  reduce  the  capital  from  ^200,000  to 
^96,000  by  cancelling  i6s.  on  the  130,000  shares  issued,  and  to 
sub-divide  the  whole  amount  into  960,000  shares  of  2s.  each. 
As  soon  as  possible  proposals  will  be  submitted  for  raising  a 
sufficient  sum  to  bring  the  planted  area  into  bearing,  and  the 
.shareholders  will  then  be  offered  an  opportunity  of  participat- 
ing. It  is  a  drastic  scheme,  but  the  directors,  being  satisfied 
that  the  reduction  is  not  greater  than  is  required  by  the  present 
position,  did  well  in  avoiding  any  half-measures. 

Langen  (Java)  Rubber  Estates  Co.,  Ltd. — Year  to  August 
31.  Capital  ^102,700  in  £1  shares.  Reserve  ;f33,ooo.  Output 
774,400  lbs.,  increase  1,200  lbs.;  average  price,  2s.  9.77d., 
against  2s.  8.33d. ;  all-in  cost,  is.  3.96d.,  against  is.  2.93d. 
Nett  profit  ;^6o,o8o,  an  increase  of  ;£3,ooo,  but  excess  duty  for 
1916  amounted  to  ;rf34,5oo,  and  a  similar  provision  is  now  made 
for  1917.  After  placing  ^^7,000  (new)  to  reserve,  the  dividend  is 
cut  down  from  22^  per  cent,  to  15  per  cent,  (of  which  10  per 
cent,  has  already  been  paid),  and  ^3,000  more  at  ;f6,7oo  is 
carried  forward.  Output  for  the  current  year  is  estimated  at 
735,000  lbs.,  and  the  coconut  crop  at  300,000,  against  330,000 
harvested  last  year.  Under  the  circumstances,  we  think  the 
directors  are  prudent  in  reducing  the  dividend,  as  the  com- 
pany is  very  hard  hit  by  the  excess  profits  duty  and  Ned.- 
Indies  war    tax. 

Sapumalkande  Rubber  Co.,  Ltd. — Year  to  December  31. 
Capital  ;,fi65,ooo  in  £1  shares.  Reserves  ;^3o,ooo.  Rubber 
output  505,400  lbs.,  increase  i03,doo  lbs.;  average  price 
2s.  3.64(1.,  against  2S.  5.73d.  ;  all-in  cost  is.  5.5id.,  against 
IS.  7.23d.  Tea  output  191,800  lbs.,  decrease  72,000  lbs;  average 
price  II. nod.,  against  ii.96d.  ;  all-in  costs  is.  3.02d.,  against 
ii.65d.  Nett  profit  ;,;^i4,68o,  a  decrease  of  ;^3,5oo ;  and  the 
dividend  is  reduced  from  10  per  cent,  to  6  per  cent.,  leaving 
;^4,7oo  more  at  ;!i'6,35o  to  be  carried  forward.  Output  for  the 
current  year  is  estimated  at  400,000  lbs.  rubber  and  143,500  lbs. 
tea.  It  will  be  noticed  that  there  was  a  substantial  loss  on 
the  tea   crop  last   year. 

New  Crocodile  Rives  (Selangor)  Rubber  Co.,  Ltd. — Year 
to  December  31.  Capital  ;^i25,ooo  in  2s.  shares.  Reserves, 
;^6i,96o.  Output,  625,000  lbs.,  increase  90,000  lbs.  ;  average 
price,  2s.  6.66d.,  against  2s.  S.'62d. ;  all-in  cost,  i3.47d.,  against 

THE  GAPE  COPPER  COMPANY,  LIMITED. 

NOTICE  IS  HEREBY  GIVEN  that  a  Meeting  of  the  Directors 
of  this  Company  held  to-day,  it  was  resolved — 

"That  an  interim  dividend  of  3  per  cent.,  less  Income  Tax, 
be  and  is  hereby  declared  on  the  6%  Cumulative  Prefer- 
ence Shares,  payable  on  the  1st  day  of  July,  1918,   to 
the  Shareholders  on  the  Books  of  the  Company  on  the 
1st  June,  1918,  and  that  the  Transfer  Books  be  closed 
during  the  said  1st  June,  1918." 
Holders  of  Share  Warrants  to  Bearer  are  informed  that  Prefer- 
ence Coupon  No.  52  will  be  paid  at  the  above  rate  on  presentation 
at  the  Company's  OflSce. 

The  Indian  Mines  have  not,  in  consequence  of  delays  arising 
from  the  War,  reached  the  stage  of  production.  The  output  of 
copper  from  the  Mines  in  Cape  Colony  for  the  first  six  months  of 
the  current  financial  year  was  considerably  reduced  owing  to 
difficulties  of  transport. 

In  the  circumstances  the  Directors  consider  it  undesirable  to 
make  any  interim  distribution  on  the  Ordinary  Shares. 
By  order  of  the  Board, 

P.  J.  FRANKS, 
9,  Queen  Street  Place,  Secretary. 

London,  E.C.  4. 
29th  May,  1918. 
N.B. — Warrants  for  the  Dividend  will  be  sent  by  post  to  the 
Shareholders  at  their  registered  addresses. 


Si*"' 


XTbc  Jnvestors'  IReview. 


u)}H. 


ii.56d.  Nett  profit  ;^28,84o,  decrease  £i2,ii,no.  F'inal  divi- 
dend, s  per  cent.,  making  lo  per  cent,  for  the  year,  against  20 
per  cent.,  and  after  placing  ^f  10,000  (against  nil)  to  reserve, 
there  remains  /i4,i50  to  be  carried  forward,  subject  to  excess 
duty.  For  1916  excess  duty  amounted  to  ;^  15,200,  but  it  will 
be  substantially  less  in  respect  of  the  past  year.  The  total 
planted  area  is  2,920  acres,  of  which  :,9io  acres  were  in  bearing 
last  year,  giving  an  average  yield  of  327  lbs.  per  acre,  but  some 
of  the  fields  planted  in  1907  gave  the  very  satisfactory  yield  of 
over  540  lbs.  No  estimate  is  given  of  the  output  anticipated  for 
the  current  year,  but  to  the  end  of  April  it  amounted  to  191,000 
lbs.,  a  decrease  of  5,000  lbs.  as  compared  with  the  correspond- 
ing period. 

D.uiANS.\R.\  (SKr..\NGOR)  RUBBER  Co.,  Lti). — Year  to  December 
31.  Capital  ;f  105,000  in  £1  shares.  Reserves  ^41,700.  Output 
861,150  lbs.,  increase  76,000  lbs.;  average  price  in  Singapore 
IS.  II. lid.,  and  in  I,ondon  as.  3.39d.,  against  2s.  s.Ogd.  all 
round  last  year.  Xo  figure  is  given  for  costs,  but  for  1916  it 
was  ii.oi^d.  "all  in."  Nett  profit  ^53,300,  a  decrease  of 
;/?8.ooo.  Three  interim  dividends,  amounting  to  40  per  cent., 
have  been  paid,  and  there  is  to  be  no  final  dividend.  For  1916 
the  distribution  was  55  per  cent.,  and  ^4,000  was  placed  to 
general  reserve,  while  on  this  occasion  ;f5,ooo  is  placed  to 
income-tax  reserve,  and  the  carry  forward  is  increased  by 
;^5,ooo  to  ;f7,54o.  Output  for  the  current  year  is  estimated 
at  690,000  lbs.  The  cultivated  area  is  2,4.66  acres,  of  which 
2,170  acres  were  planted  prior  to  1913.  and  should  now  all  be 
in   bearing. 

—  ::^« 

What    Balance    Sheets   Tell. 

De  Tkey  .4ND  Co.,  Ltd. — No  doubt  largely  owing  to  Army 
requirements,  this  dental  company  has  made  huge  strides 
in  the  past  two  years.  In  1916  profits  showed  an  increase  of 
;^'47,ooo,  and  last  year  they  further  increased  ^^13,600  to 
£a^,'ioo.  Income-tax  required  ;^3,ooo  more,  but  ^9,000  more 
was  brought  in,  and  the  total  available  is  ;^'i9,ooo  up  at 
^£99,000.  In  addition  to  the  dividend  of  10  per  cent.,  a  bonus 
of  5  per  cent,  is  to  be  paid  this  lime,  and,  after  placing 
;^35,ooo,  or  ;f7,ooo  more,  to  reserves,  the  balance  forward  is 
reduced  ;^3,ooo  to  _^io,72o.  The  financial  position  looks  very 
healthy. 

H.  H.  AND  S.  BUDGET!  AND  Co.,  LTD.^n  the  year  to  March  2 
nett  profit  amounted  to  ^'42,200,  an  increase  of  j^i2,ooo,  and, 
with  the  balance  brought  forward,  interest,  &c.,  there  is  a  total 
of  ^51,000  available.  After  providing  double  at  ;^'24,ooo  for 
e.Kcess  duty,  and  again  placing  .^5,000  to  reserve,  the  ordi- 
nary shares  are  to  get  a  bonus  of  2\  per  cent.,  in  addition  to 
the  dividend  of  12J  per  cent.,  and  the  preference  shares  also 
receive  a  bonus  of  2J  per  cent.,  leaving  pf  5,400,  or  only  a  trifle 
less,  to  be  carried  forward.  The  company  is  moderately 
capitalised,  and  the  profits  are  equal  to  about  70  per  cent,  on 
the  ordinary  shares. 

Ot!s  Steel  Co.  (Cleveland,  Ohio).— In  1916  the  nett  profit 
amounted  to  $3,364,000,  as  compared  with  $440,000  for  1915. 
Last  year  there  was  another  big  jump  to  $5,695,000,  after  pro- 
viding for  excess  profits  tA.  Accordingly,  ^3,000,000  has  been 
placed  to  various  reserves,  which  now  amount  to  over  6 
millions,  and,  in  addition  to  a  dividend  of  10  per  cent,  (paid 
quarterly),  it  is  proposed  to  pay  a  bonus  of  like  amount, 
leaving  1157,500,  or  $120,000  more,  to  be  carried  forward. 
Moreover,  $2,697,000  bonds  have  been  purchased  and  cancelled, 
leaving  only  $303,000  outstanding,  and  $665,000  has  been  set 
aside  for  the  redemption  of  the  preferred  stock,  of  which  there 
is  $2,655,000  outstanding.  Of  course,  conditions  have  been 
extraordinarily  favourable  to  undertakings  of  this  description, 
and  the  company  has  enoririously  strengthened  its  position  in 
the  past  two  years. 

London  and  Suburban  Tractii^"  Co.,  Ltd. — This  company 
liolds  blocks  of  shares  in  the  Metropolitan,  Electric,  London 
United,  and  other  tramways,  valued  in  the  books  at  ;f3, 733.000, 
and  in  addition  it  has  advanced  ^'185,000.  Most  of  these 
undertakings  have  been  doing  rather  badly,  owing  to  the  in- 
crease in  working  expenses,  and  the  London  United  is  in  a 
hopeles.sly  waterlogged  condition.  Consequently  revenue  last 
year  dropped  ;^39,ooo  to  ^^81.520,  and  the  preference  dividend 
has  to  be  cut  in  half  at  2\  per  cent.,  while  the  carry  forward 
is  ,^1,000  smaller  at  ;^'3,6oo. 

City  of  Dublin  Stf.am  Packet  Co. — This  company  has  just 
submitted  its  i8oth  half-yearly  report  (to  February  28),  so  it  is 
getting  well  on  in  years.  Hut  it  has  its  hands  full  of  troubles — • 
with  the  Postmaster-Gener.ll  over  the  renewal  of  the  ni.Til  con- 
tract, with  the  .Shipping  Controller  over  scatterbrained  orders, 
with  the  Coal  Controller  for  adding  2s.  6d.  to  contract  price, 
aftd  with  German  submarines.  Nevertheless,  profits  have  been 
well  maintained,  owing  to  the  exceptionally  heavy  p:isseriger 
traiKc.  Gross  receipts  amounted  to  /'i76,ooo,  and  the  nett 
profit  was  ;^26,5oo,  out  of  which  the  usual  dividend  at  the  rate 
of  5i  per  cent,  per  annum  is  paid,  and  the  balance  forward  is 
;f  i.ooo  higher  at  ;f6,5oo. 

Army  and  Navy  Auxiliary  Co-oper.ativk  Sn'fi.v,  Ltd. — In 
the  year  to  February  28  trading  profits  and  miscellaneous  re- 
ceipts amounted  to  ;fio2,82o.  an  increase  of  /'4,^oo,  while  ex- 
penses were  ;f4,ooo  less,  but  the  amount  brought  in  was  jfq.cxm 
smaller,  and  the  balance  available  is  about  the  same  at  £.t,\,2^i. 
Accordingly,  the  dividend  of  los.  per  share  (50  per  cent.)  is 
repeated,  and,  after  giving  ^^500  more  -w.  £.2.:fM>  as  a  war 
bonus  to  the  staff,  the  carry  forward  is  ^1,000  less  at  ;f  7.450. 
The   domestic   squabble   which   has  recently  disturbed  the   calm 


of  the  parent  household  is  deliotely  referred  to  in  the  report. 
We  are  told  that  the  question  of  amalgamation  between  thfr 
company  and  the  Army  and  Navy  Co-operative  Society,  Ltd., 
has  been  mooted,  and  should  such  a  scheme  be  the  general  wish 
of  the  shareholders  of  both  companies,  the  board  is  prepared 
to  proceed  at  once  with  negotiations  preliminary  to  putting 
forward  recommendations  for  the  consideration  of  the  share- 
holders— which  is  very  nice,  but  the  terms  of  purchase  ma)r 
prove  a  stumbling-block. 

British  and  African  Steam  Navigation  Co.,  Ltd. — The 
debentures  of  this  company  having  all  been  redeemed  and  can- 
celled, the  usual  issue  of  the  annual  report  and  balance-sheet 
will  be  discontinued.  The  result  of  the  working-for  the  year 
ended  December  31,  1917,  is  stated  as  follows: — Profits, 
;^ii8,o88;  dividend,  6  per  cent.;  reserve  fund,  ;^3o,ooo;  carry 
forward,  .,^60,370. 


PUBLIC     INCOME     AND 


EXPENDITURE. 

the 


The  following  are   the  receipts  mto  and   issues  out     of 
Exchequer  between  April  1,  1918,  and  May  25.  1918: — 


Eslimate 

for  the 

Year 

1918-1Q19. 


I  Total  Receipts  Total  Keceipts 
I        into  the  Info  the 

I  Exchequerfrom  Exchequer  from 
April  I,  1918.  toJApril  1.  1917,  to 
;    May  25,  1918.   1    May  a6,  1917. 


Balances   in    Exchequer   on 

April  I— Bank  of  EngLmd  , . 

Bank  of  Ireland    . , 


Revenue. 

Customs  

Excise  

Estate,  &c..  Duties 

Stamps 

Land  Tax 

House  Duty    

Property  and  Income  Tax  and 

SuperTax    

Excess  Profits  Duties,  &c.. 

i^and  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    from    Sundry 

Loans,  &c 

Miscellaueous 


i 

1,663,432 


21,030,030 


12,609,000 
6,684,000 
4,454,000 
1,053,000 

265.000 

20,362,000 

38,580,000 

76,000 

4,000,000 

1 10,000 

895 


I 

a5»2c9.947 
1*225,912 


26,435.8:9 


io,9t4.ooo 

7,132,000 

5,032,000 

818.000 

280,000 


17.539.0^ 

25.937.000 

101,000 

3,9Ct>,ooo 
9o,cpo 

50f 
715.455 


Revenue 
Total 


Other  Receipts. 

Repayment  of  Advances  for  Bullion   ■ 

For  Treasury  Bills  (tor  supply)    , 

For  5  per  Cent.  Exchequer  Bonds.  1922   ; 

For  3  per  Cent.  Exchequer  Bonds,  1930    .... 

For  War  Savings  Certificates ; 

For  other  Debt  (War  Loan  Acts,  1914-1917)  .. 
For  4  per  Cent.  War  Loan,  1929-1942,  and  5  per 

Cent.  War  Loan,  1929-1947    

For  N  ational  War  Bonds    , 

Temporary  Advances — Waysand  Means. 


89.541.529 


72,488.953 


110,571,559 


870,000 
617,979*000 

799,500 
14,800,000 
96,623,037 


*n2, 819,000 
127,028,440 


Total 1 ,0*1 ,490,506 


98,924.812 

410,000 
478,260,000 
29,323,000 

6,4ro,O0n 
55.785.229 

116,750,000 
100,605.000 


686,458,041 


♦Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account 


EXFBNDITURB 
AND  OTHER   ISSUES. 


Estimate  for 
the  Year 
1918-19. 


j  Total  Issues  1  Total  issues 
'out  of  the  Ex- {out  of  the  Ex 
jchequer  10  meet  chequer  to  meet 
{payments  from  [payments  from 
April  I,  1918,  to  April  i.  1917,  tc 
{     May  25,  :9i8.        May  26,  1917 


Expenditure. 
Permanent  Charge  of  Debt 
Interest,  &c.,  on  War  Debt 
Payments  to  Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

■  Supply  Services    


Expenditure 


I    Exchequer 
Expenditure 


I 

3.278,855 
21. 511, £03 

450,380 

242,079 
396,762,600 


422,245.717 


Other  Issues. 
For  Advances  for  Bullion 
For   Advances    for    Interest    c 

Bonds     under    the     Capital 

(Money)  Act,  i9">4    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act,  1913 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Suppiv 

For  War  Lean?,  Eicheijuer  Bonds,  &c.,underj 

Section -.4  of  Finance  Act»  1917  1 

For  War  Expenditure  Certificates  under  War 

Loan  Act,  1916 \ 

For  other  Debt  un-  er  the  War  Loan  Acts, 

1914  to  igt7 V"-*. .•*■■;.•. 

For  Depreciation  Fund  under    the   Finance 

Act,  1917 

Old    Sinkint!    Fund,     igio-ii.    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  (b)  .. 
Temporary  Advances  repaid— Ways  and  Means 


84.909 

12,000 

106.300 

1398,411,000 

7,674.674 

U8,€oo 

9.497.837 

3,C60,O22 

20.C00 
23,000  000 


£ 
3.433.784 

9.»53.3S' 

450,380 

240,756 
354,921,400 


368,299,701 


Balances  in  Exchequer- 
Bank  of  England 

Bank  of  Ireland 


1918. 

May  25. 

i. 


1917. 
May  36. 


14,451,450  23.053. J51 
1.486,9971    I.740.5® 


ToUl t,o3i  ,49'>.5°6 


1,065,741,059 


i!.7«9.«7 


620,000 
84,509 

2.\0OO 

i75.4«o 
179906.000 

56,210- 


II2,lo-,roo 


661,662,220 


84.795  .*2' 


686,458.011 


Mbho.— Treasury  Bills  outstanding  oc  May  25. 1918 'f 9;2.3j6.ooc 

•  Includes  £186,000.  the  proceeds  of  which  were  not  carried  lo  the  ticb-  quer 

within  the    period   of  the  account,  besides   a   part   (not   jet  jsciirtaincd  and 

brought  to  account)  ofthe  Bills  tendered  as -subscriptions  lo  National  War  i».  n  s. 
t  Includes  part  payment  of  Bills  and  Certificates  tendered  as  subscriptions 

to  National  War  Bonds 


June  i,  igi8. 


Hbe  jnveetors'  IReview, 


537 


COMPANY  MEETINGS. 


METROPOLITAN    CARRIAGE,  WAGON,    AND 
FINANCE    CO. 

Tlie  annual  meeting  of  the  shareholders  u£  the  Metropolitan 
Carriage,  Wagon,  and  Finance  Co.,  Ltd.,  was  held  at  Birming- 
ham on  Thursday,  Mr.  F.  Dudley  Docker,  C.B.,  chairman,  pre- 
siding. 

The  Chairman,  in  moving  the  adoption  of  the  annual  report 
and  balance-sheet,  which  he  thought  the  shareholders  would  con- 
sider satisfactory,  went  on  to  speak  of  the  developments  of  the 
past  and  their  hopes  of  the  future.     They  had  further  developed 
the  financial   department   by   the  acquisition   of   controlling    in- 
terests in   various  allied   commercial  undertakings,   and   would 
ask  the  shareholders  to  sanction  a  considerable  increase  of  the 
nominal  capital  of  the  company.     This  did  not  mean  that  they 
must  make  immediately,  of  necessity,   a  large  issue  of  shares, 
but  they  felt  that  in  the  new  world  in  which  they  would  find 
themselves  after  the  war  every  undertaking  that  wished  to  suc- 
ceed must  be  big  and  must  be  self-contained,  and  that  in  such 
circumstances  they  should  as  far  as  possible  be  able  to  exercise 
some  measure  of  control  over  anything  that  affected  the  founda- 
tion and  structure  of  their  industry.     I  toM  you  last  year,  he 
continued,    that   we   had    embarked    in   electrical    business,    and 
that  we  had  purchased  from  the  Americans  the  control  of  the 
British   Westinghouse   Co.     You   will,    I   know,   agree  that   the 
electrical   trade  is  a   "key  industry,"   and   to   be  successful   it 
must  be  organised  on  broad  and  sound  lines.     In  the  past  it  has 
been   almost  entirely  controlled  by  other  nations,  and  that  be 
cause  there  were  too  many  competing  interests  in  this  country, 
each  suffering  from  insuflicient  equipment.     It  is  our  intention 
to  strain  every  nerve  and  use  to  the  full  the  resources  of  brains 
and  capital  to  buiM  up  this  indu.stry.     We  are  certain  it  will 
not  only  be  to  the  ultimate   good  of   the  shareholders,    but    n 
matter  of  considerable  importance  to  the  countrv  itself.     In  pur- 
suing this  enterprise  we  feel  that  we  are  helping  the  whole  of 
our  national  commerce,  and  as  we  are  in  a  position  to  do  so, 
we  have  no  hesitation  in  asking  you  to  be  generous  in  your  sup- 
port, to  take  the  broad  view,  and  to  study  the  national  as  well 
as  our  individual  interest.     I  am  convinced  that  upon  electrical 
enterprise  rests  the  fate  of  nearly  every  industry  in  the  country. 
and  I  do  not  doubt  that  in  various  degrees  our  policy  will  have 
the  support  of  the  whole  commercial  world.     After  the  war  we 
shall  have  the  keenest  competition  from  Germany,  and  I  have 
had  some  particulars  taken  out  as  to  the  amount  of  money  spent 
on  research  in  the  past  by  our  enemies,  and  I  think  I  am  right 
in  saying  that  it  is  almost,  if  not  quite,  in  excess  of  the  whole 
of  the  dividends  ever  paid  in  this  country  by  the  whole  of  our 
electrical  industries.     It  is  our  intention  to  have  a  research  de- 
partment  that  shall   be   second    to    none     in   the  world.        To 
.  strengthen  the  position  we  have  entered   into  an  alliance  with 
Messrs.  dickers,  who  will  share  with  us  in  our  electrical  work. 
In   addition  we  have  recently  acquired  large   interests   in   the 
South  Metropolitan  Electric  Light  and  Power  Co.  and  the  We.st 
Kent  Power  Co.,  both  of  which  have  areas  ripe  for  development. 
At  the  outbreak  of  war  the  manufacture  of  glass  bulbs  for  elec- 
tric lamps  had  been  almost  exclusively  done  abroad.     I  am  glad 
to  say  that  in  conjunction  with  the  General  Electric  Co.  we  have 
agreed  to  purchase  the  British  rights  in  special  machines  for 
making  these  glass  bulbs,  and  we  hope  soon  to  have  the  first 
machine  installed  and  at  work,  when  Great  Britain  will  be  in- 
dependent, as  far  at  any  rate  as  the  manufacture  of  these  bulbs 
IS  concerned.     We  do  not,  however,  seek  to  establish  any  mono- 
poly, but  will  be  ready  to  grant  licences  on  favourable  terras  to 
any   British  firms.     We  have  further  entered   into  partnership 
with  the  Birmingham  Small  Arms  Co.  for  the  manufacture  of 
certain  munitions,   another  "  key  industry,"   for  which  goods, 
again,  we  were  largely  dependent  upon  other  countries.     We  are 
also  arranging  to  take  over  a  further  large  manufacturing  in- 
terest, which  will  develop  the  .staple  business  of  the  company. 
In  all  this  I  want  the  shareholders  to  note  that  one  of  the  chief 
objects  of  our  developments  has  been  to  ensure  self-support  to 
this  country  in  trade  and  business  that  in  the  past  has  been,  in 
some  degree,  controlled  by  other  nations. 

You_  will  remember  that  from  time  to  time  I  have  drawn  the 
attention  of  the  public  to  the  imperative  necessity  of  amalgama- 
tions and  c<,mbi nations,  and  I  have  been  glad  to  see  in  recent 
times  inu(h  progress  in  this  direction.  Some  people  have  given 
voice_  to  their  fears  that  these  amalgamations  are  merely  a 
creation  of  trusts,  which  in  time  secure  monopolies  to  the  detri- 
ment of  the  public  weal.  I  have  no  such  fears,  and,  within 
reasonable  limits,  I  am  wholly  in  favour  of  combining  com- 
peting interests,  whether  manufacturing,  banking,  baking, 
brewing,  or  mere  benevolent  and  charitable  institutions,  or  even 
Government  Departments.  I  think  the  success  of  this  company 
is  a  standing  tribute  to  the  wisdom  of  amalgamation  carried  out 
on  sound  lines.  Two  year.s  ago  I  mentioned  to  you  the  forma- 
tion of  the  Federation  of  British  Industries.  At  that  time  I 
fold  you  we  had  among  its  members  a  number  of  influential 
firms,  but  that  we  wanted  a  thousand.  T  am  happy  to  tell  yon 
that  we  are  well  on  the  way  to  that  thousand,  as  the  latest 
return  that  I  have  seen  shows  that  the  membership,  including 
trade  associ.-itions,  was  between  800  and  qoo.  I  am  glad  to  tell 
you  that  this  federation  is  consulted  by  various  Government 
Departments,  and  I  believe,  as  time  goes  on,  it  will  have  great 
weight  in  a'1  delil)orations  on  trade  affairs.  I  do  hope  that 
other  firms  will,  sooner  or  later,  and  tlie  sooner  the  better,  be- 
come memljors,  for,  though  we  may  have  differences  of  opinion, 
we  are  all  cut  for  the  one  big  thing,  and  that  is  the  British 
side,  and  we  can  only  accomplish  results  by  being  united  and  hy 


ventilating  whatever  grievances  we  may  have  one  with  the  other 
before  going  out  to  battle.  This  federation  should  have  far- 
reaching  benefits  for  every  member  of  the  trading  community. 

To  revert  to  the  domestic  affairs  of  our  company,  the  figures  in 
the   balance-sheet  disclose  the   extraordinary   developments  that 
have  taken  place  since  we  added  in  1912  "  and  Finance  "  to  our 
name,  and  indicate  to  you,  as  they  must  to  every  one,  that  we 
cover  an  enormous  field.     You  will  see  by  our  "  cash  at  bank  " 
that  a  large  portion  of  our  assets  are  liquid,  and  by  our  "in- 
vestments "  that  we  are  both  strong  and  have  tangible  resources. 
Our  stock-in-trade  and  work  in  progress  has  increased.     It   is 
a  very  movable  figure,   and   is  to  a  large  extent  governed  by 
circumstances.     Our  debtors  are  very  much  the  same  in  amount 
as  our  creditors.    We  can  set  them  off  one  against  the  other,  and 
we  shall  still  have  a  balance  to  the  good.     We  raise  our  external 
reserve  fund  to  ^6oo,cxx3,  and  we  carry  forward  to  next  year's 
accounts  a  sum  of  ^20,000    more  than  we  did  last  year.     I  am 
glad— no,  I  am  delighted— to  tell  you  that  a   large  number  of 
our  workpeople  have  become  shareholders   in  the   company,    a 
policy  which  I   am  sure  you  will   approve,  and  one  which  we 
hope  to  develop.     I  have  many  times  in  the  past  alluded  to  the 
necessity  of  maintaining  on  a  .sound  ba.sis  the  relations  between 
employers  and  employed,  and  the  formation  of  a  genuine  alli- 
ance of  capital  and  labour.     Our  future — the  nation's  future — 
in  the  world's  commerce  depends  upon  it,  and  during  the  past 
year   I  have  frequently   written   and   spoken  upon   it.     I  have 
always  insisted,  and  I  reiterate  it,  that  the  three  things  neces- 
sary  for   a   solution   of   all   labour   difliculties   are    good   faith, 
mutual  confidence,  and  common  sense.     Given  these  essentials, 
we  can  work  out  our  own  salvation.     We  want  no  interference. 
State  or  otherwise.     Britishers,  ma.sters  and  men,  don't  like  it. 
From  the  workman  we  trust  to  obtain  diligence  and  perseverance 
while  at  work,  in  order  that  the  maximum  output  can  be  main- 
tained, and  the  employer,  on  his  part,  .should  regard  his  work- 
jieople   in  the  light  of  partners,   and  treat  them  as  such.     He 
mu.st  be  ready  to  promote  their  welfare  and  their  happiness,  and 
to  help   them  to   increase   their   self-respect.      I   would   like    to 
remind  you  of  the  association  that  has  been  formed  under  the 
name  of  the  National  Alliance  of  Employers  and  Employed.     It 
has  grand  opportunities,  and  of  its  efforts  I   have  the  greatest 
possible  hope.     We  are  preparing  plans  to  take  effect  after  the 
war  for  various  developments  in  the  direction  of  better  housing 
and  better  accommodation  for  our  workpeople.    We  are  working 
out  our  scheme  in  conjunction  with  a  committee  of  the  men,  and 
it  will  be   ripe  before  very  long.     Our  desire  is  that  the  men 
shall   become   owners  of  their  houses  on   the    most    favourable 
terms,  while  the  houses  will  be  designed  both  for  comfort  and 
convenience. 

Mr.  Ludford  C.  Docker,  one  of  the  vice-chairmen,  seconded, 
and   the  report  was  adopted. 

A  further  resolution  was  carried  declaring  dividends  of  2J 
per  cent,  and  3  per  cent,  (less  income-tax)  on  the  "  A  "  and  "  B  " 
pireference  shares,  making  5  per  cent,  and  6  per  cent,  respec- 
tively for  the  year,  and  a  final  dividend  of  is.  per  share  for 
the  six  months  ended  March  31,  1918,  together  with  a  bonus  of 
IS.  per  share  on  the  ordinary  shares  (both  free  of  income-tax). 
The  resolution  also  provided  for  the  transfer  of  ^ioo,ocx)  to  the 
reserve  fund,  and  the  carrying  forward  to  the  current  year's 
account  of  the  balance  of  ^121,352. 

By  a  subsequent  resolution,  which  was  carried  without  dis- 
cussion, the  capital  was  increased  to  ^f  10,675,000  by  the  creation 
of  7,000,000  ordinary  .shares  of  £1  each. 


ALLIANCE    ASSURANCE    CO. 

The  annual  general  court  of  the  Alliance  Assurance  Co.,  Ltd., 
was  held  on  Wednesday  at  the  head  office  of  the  company, 
Bartholomew  Lane,  Colonel  Francis  A.  Lucas,  the  deputy 
chairman,  presiding. 

The  Secretary  (Mr.  Sidney  T.  Smith)  read  the  advertisement 
convening  the  meeting  and  the  certificate  of  the  auditor. 

The  Chairman  said  Mr.  Charles  Rothschild  had  asked  him  to 
apologise  for  his  unavoidable  absence ;  he  wrote  that  his  health 
was  better,  and  that  he  hoped  to  be  back  among  his  colleagues 
before  very  long.  Three  others  of  the  directors  had  been  absent 
on  war  service  during  the  year — namely,  Lord  Dalmeny,  Lord 
Hartington,  and  Major  Ellis.  The  last-named  was  severely 
wounded,  but  he  had  made  a  good  recovery.  The  number  of 
the  staff  who  had  given  their  services  to  the  country  now 
reached  a  total'  of  556,  exclusive  of  a  considerable  number  of 
youths  engaged  since  the  outbreak  of  war,  who  had  to  leave 
when  they  attained  military  age.  No  less  than  73  had  fallen, 
while  a  few  more  were  missing  or  known  to  be  prisoners.  Since 
he  last  had  the  pleasure  of  addressing  the  shareholders  several 
military  distinctions  had  been  gained  by  members  of  the  staff. 
Captain  Pollard,  a  son  of  one  of  the  company's  old  officials, 
had  won  the  V.C. ;  seven  Military  Crosses  had  also  been  gained, 
and  three  Military  Medals,  including  one  French  Military 
Medal.  The  war  continued  to  leave  its  impression  on  all  de- 
partments of  the  company's  business — in  some  cases  in  the  direc- 
tion of  an  increase  of  business,  in  others  in  the  direction  of  a 
ijinjiiiution.  The  causes  which  had  operated  against  expansion 
in  the  life  department  continued,  and  they  would  have  to  wait 
for  the  conclusion  of  peace  for  any  marked  change.  There  were, 
however,  hopeful  signs  that  the  public  were  showing  an  in- 
creased appreciation  of  the  company's  non-profit  assurances, 
and  also  of  its  educational  endowment  assurances.  The  total 
of  the  claims  attributable  to  the  war  amounted  at  the  end  of  the 
voir  to  /,'j()8,256  on  .\lliance  account  and  to  ^^510, 215  in  all 
Fimils.  The  quinquennial  valuation  of  the  Provident  Life  Fund 
was  made  at  the  end  of  1917,  and  in  consequence  of  the  heavy 
depreciation   of    securities    they   were   unable   to   make    a    bonus 


53« 


tCbe  investors'  IReview. 


June  i,  1918. 


distribution.  With  regard  to  the  fire  a<;count/the  income  for 
1917,  amounting  to  j^i, 516,104,  showed  an  increase  exceeding 
that  of  the  previous  year  by  £i46,<)40.  This  might  be  attri- 
buted largely  to  the  increase  in  the  value  of  commodities,  and 
was  the  more  remarkable  because  many  of  the  articles  of  which 
the  Government  assumed  control  were  lost  to  the  insurance 
n'arket  owing  to  the  practice  the  Government  followed  of  being 
its  own  insurer.  Another  contributing  factor  was  that  a  large 
number  of  the  company's  policyholders  had  revised  their  insur- 
ances, particularly  on  buildings.  It  was  hardly  to  be  expected 
that  the  remarkable  loss  ratio  of  the  Alliance  in  1916  would  be 
repeated  in  1917,  but  he  did  not  suppose  that  any  of  the  share- 
holders would  find  any  cause  for  complaint  at  the  figure  now 
reported — namely,  £42  5s.  3d.  per  cent,  of  the  premiums.  The 
company  did  not  .suffer  from  the  fire  at  Salonica,  which  in- 
volved large  los,ses  to  .soine  of  the  English  companies.  There 
was  a  slight  reduction  in  the  expen.se  ratio.  Though  the  total 
amount  appearing  in  the  several  accounts  under  the  headings 
of  commission  and  expenses — with  the  exception  of  income-tax 
and  excess  profits  duty,  which  they  could  not  control — was 
somewhat  larger  than  in  i()i6,  its  ratio  to  the  total  income  (ex- 
clusive of  interest)  was  appreciably  .smaller. 

It  had  been  found  desirable  to  show  the  marine  account  in  a 
different  form  from  that  adopted  in  recent  )'ears.  It  was  really 
a  reversion  to  the  old  practice  of  the  Alliance  Marine  Co. 
when  it  was  a  sepvarate  business.  It  was  found  impossible  to 
form  reliable  estimates  of  all  the  losses  which  might  have  oc- 
curred up  to  the  end  of  the  year,  and  therefore  their  accounts 
would  be  kept  open  for  another  year.  They  were  carrying  to 
profit  and  loss  account  from  the  profits  of  the  years  prior  to 
1917  what  they  regarded  as  a  very  moderate  and  conservative 
amount,  and"  they  had  every  hope  that  they  would  realise  a 
further  substantial  amount  from  the  marine  account  at  the  close 
of  the  present  year.  Their  several  accident  accounts  continued 
to  yield  satisfactory  results.  The  restriction  of  petrol  had  re- 
sulted in  .some  temporary  falling  off  in  their  motor-car  pre- 
miums. In  the  employers'  liability  section  the  passing  of  the 
War  Additions  Act  had  brought  the  company  some  additional 
premiums,  although  it  had  not  been  thought  necessary  to  make 
any  alteration  in  the  premium  charges  for  domestic  servants. 
As  a  result  of  the  trading  during  1917  they  had  carried  to 
profit  and  loss  account  ;f 623,198.  Taxation  aggregated  nearly 
a  quarter  of  a  million,  in  addition  to  the  income-tax  upon  the 
income  from  investments.  They  vpere  heavy  burthens,  but  must 
bo  regarded  as  the  company's  contribution  to  the  cost  of  victory, 
and  as  such  they  must  be  borne  with  equanimity.  In  addition 
to  the  company's  contribution  of  ;^5,ooo,ooo  to  the  last  War 
Loan,  it  had  been  the  practice  of  the  directors  to  invest  in  War 
Honds  almost  regularly  week  by  week  all  surplus  funds  that  be- 
came available  without  waiting  for  any  distribution  of  divi- 
dends. This  they  felt  sure  was  the  proper  course  to  follow  for 
companies  such  as  theirs,  as  such  funds  became  immediately 
available  for  Government  expenditure,  and  if  it  were  more 
generally  followed  the  National  Exchequer  would  benefit  much 
more  quicUly  than  by  waiting  for  the  half-yearly  distribution 
of  dividends. 

The  report  was  unanimously  adopted,  and  a  dividend  of  12s. 
per  share,  less  income-tax.  was  declared,  the  balance  of  7s.  per 
share  ^eing  payable  on  and  after  July  5  next. 

At  a  subsequent  extraordinary  general  court  a  resolution  was 
unanimously  passed  making  certain  alterations  in  the  laws 
and  regulations  to  enable  the  company  to  use  a  seal  abroad. 

A  cordial  vote  of  thanks  to  the  chairman,  the  directors,  and 
the  staff  terminated  the  proceedings. 


will  note  it  is  15  per  cent.,  as  provided  for  in  the  articles  ol 
association.  May  I,  however,  recall  to  your  mindg  the  fact 
that  the  ordinary  share  capital  was  formerly  ;^5oo,ooo.  1 1. 
was  written  down  in  the  reorganisation  schemes  of  lyio  aud 
1914,  and  /go.ooo  was  also  surrendered  to  the  preference  share- 
holders in  lieu  of  four  years',  or  /60.000.  unpaid  dividends. 
The  ordinary  capital  was  thus  finally  reduced  to  ;^82,ooo,  at 
which  it  now  stands,  so  that  the  dividends  of  15  per  cent., 
amounting  to  ;^i2,3oo,  really  represents  less  than  2^  per  cent. 
on  the  original  capital.  The  ordinary  share  dividend  cannot 
be  increased  until  5  per  cent,  is  paid  on  the  cumulative  pre- 
ference .shares  and  on  the  preferred  ordinary  shares  and  until 
the  special  reserve  is  built  up  to  ^'250,000.  In  this  special  re- 
serve the  preference  shareholders  are  interested  to  the  extent 
of  one-fifth  in  the  event  of  the  winding  up  of  the  company.  Von 
will  note  that  the  directors  recommend  the  transference  ol 
/s.ooo  to  that  reserve,  which  will  then  amount  to  /55.0"S- 
Our  nett  profit  is  ;£'39,4o8,  as  against  £32,208  last  year.  You 
will  notice  that  your  directors  have  thought  it  prudent  to 
transfer  to  a  reserve  fund  the  .sum  of  ^■50,000  to  meet  any  con- 
tingencies that  may  arise;  and  they  trust  you  will  agree  that 
this  is  a  wise  provision.  Debenture  stocks  amounting  to 
;^27,8o4  have  been  cancelled  during  the  year,  including  those 
which  had  previously  figured  in  the  assets  as  investments.  The 
trade  for  the  current  season  continues  to  progress  satisfactorily, 
and  though  the  present  has  its  difficulties  and  the  future  its 
uncertainties,  we  trust  that  we  may  be  able  to  cattj  on  success- 
fully till  times  of  peace  enabk  trade  to  be  conducted  under 
normal  and  favourable  conditions. 

Mr.  Joseph  G.    Cohner,   C.M.G.,   deputy -chairman,   seconded 
the  resolution,   which  was  carried   unanimously. 


R.    WHITE    AND    SONS. 

The  25th  annual  ordinary  general  meeting  of  R.  White  and 
Sons,  Ltd.,  was  held  on  Friday  at  Cannon  .Street  Hotel,  E.G., 
Mr.  K.  J.  White,  chairman  and  managing  director  of  the  com- 
pany,   presiding. 

The  .Secretary  (Mr.  John  J.  Ball)  having  read  the  notice  con- 
vening the  meeting  and  the  report  of  the  auditors, 

The  Chairman  said  :  1  am  pleased  to  be  able  t6  present  to  you 
at  our  25th  annual  meeting  a  balance-sheet  which  shows  a  very 
favourable  position.  It  is  right  to  add,  however,  that  the 
stress  of  carrying  on  the  business  during  the  year  has  not  been 
lessened,  but  rather  increased.  The  restrictions  necessitated 
by  war  contingencies,  the  demands  ui>on  our  men,  of  whom 
over  600  arc  in  the  Navy,  the  Army,  and  the  Air  Service,  the 
rationing  of  our  horses,  and  the  enormous  increase  in  the  cost 
of  all  materials  are  some  of  the  difficuhies  that  have  had  to  be 
dealt  with.  I  am  glad  to  say  the  turnover  has  increased  with- 
out any  material  advance  on  last  year's  prices.  Our  policy  is 
to  keep  those  as  low  as  possible,  in  order  that  non-alcoholic 
drinks  of  good  quality  may  be  within  the  re,ich  of  all.  We  have 
been  able  to  continue  contracts  for  the  Navy  and  Army  and 
Y.M.C.A.  hut  canteens,  camps,  and  hospitals,  and  success  has 
attended  our  efforts  in  the  provision  of  light  non-intoxicating 
beers  specially  suited  to  the  needs  of  munition  workers  and  of 
the  general  public.  The  vinegar  branch  of  the  business  has  al.so 
shown  a  satisfactory  advance  in  trade.  Our  contribution  to 
the  national  revenue  in  connection  with  the  table  water  duty 
has  largely  incre-ased.  and  this,  coupled  with  the  sugar  tax  and 
excess  profits  duty,  has  for  the  year  exceeded  ^^200,000.  It 
has  given  your  directors  the  greatest  pleasure  to  be  able  to 
recommend  the  payment  of  the  preference  dividend,  includini,' 
the  dividend  in  arrcar  up  to  the  end  of  our  la.st 
financial  year,  and  also  the  payment  of  a  dividend 
on  the  preferred  ordinary  shares.  '  The  ordinary  shares 
are    taking    a    dividend     after    a    lapse    of     16     \-ears.      You 


DIVIDENDS    ANNOUNCED. 

African  Banking  Corporation.— Interim  4s.  per  share,  being 
at  rate  of  8  per  cent,  per  annum  for  half-year  to  March  31,  less 
tax,  payable  on  July  1.  A  year  ago  3s.  6d.  per  share  was  paid. 
Antofaga-sta  (Chili)  and  Bolivia  Railway  Co.— Final  for 
1917  of  7i  per  cent,  (less  tax)  on  deferred,  making  10  per  cent. 
for  year.  In  addition  bonus  of  2  per  cent.,  payable  in  fully-paid 
deferred  ordinary  stock,  is  to  be  distributed  to  deferred  ordinary 
and  deferred  ordinary  stockholders  without  deduction  of  income 
tax,  in  respect  of  profits  for  1917. 

Bank  of  New  South  Wales.— At  rate  of  10  per  cent,  per  annum 
for  quarter  ended  March  31  ;  ;£75,ooo  to  reserve,  making  it 
;^2, 950,000;  £i2y.y2()  forward,  against  ^f  114,828  a  year  ago, 
when   dividend    and  allocation  to  reserve   were    the   same. 

Brush  Electrical  Engineering  Co. — Six  per  cent,  on  ordinary 
stock  for   1916  and  1917. 

Cape  Copper  Co. — Interim  3  per  cent.,  less  tax,  on  6  per  cent, 
cumulative  preference  shares,  payable  on  July   i. 

Charterland  and  General  Exploration  and  Finance  Co.— In- 
terim  5  per  cent.,  less  tax,  payable  on  June  14. 

Charles  Kinloch  and  Co.— On  ordinary  shares  of  7i  per  cent., 
with  bonus  of  2>^  per  cent.,  equal  to  2S.  per  share,  for  year  to 
March  31,  against  is.  a  share  a  year  ago. 

Comgania  Sansinena  de  Carnes  Congeladas. — Cash  10  per 
cent,  and  a  share  40  per  cent,  for  1917.  For  1916  cash  was 
12^  per  cent.,   and  share  12^  per  cent. 

E.speranza.— Imteo-im  ,is.  per  share,  less  tax,  payable  on 
June  22,  same  as  year  ago. 

Wm.  Fison  and  Co.— Interim  at  rate  of  4  per  cent,  per  annum 
on  ordinary  shares  for   half-year  ended  April  30,   the  same. 

Hyderabad  (Deccan)  Co.— Interim  is.  per  share,  less  tax,  tti 
be  paid  on  June  24. 

Imperial  Bank  of  Persia.— Interim  for  half-year  ended 
March  20,  at  3s.  per  share,  free  of  tax,  payable  on  June  18. 

Imperial  Tobacco  Co.  of  Canada.— Interim  i^  per  cent.,  pay- 
able on  June  27. 

Law  Union  and  Rock  Insurance  Co.— 4s.  per  share,  less  tax. 
payable  on  May  31  for  half-year. 

Mexican  Petroleum  Co.— On  conmiou  $2  per  share,  payable 
July  10,  as  to  one-half  in  cash  and  one-half  in  f'.S.  4  per 
cent.  Liberty  bonds,  fractions  to  be  adjusted  as  nearly  as 
possible. 

Minna  (Nigeria)  Tin  Co.  (1914).— Interim  7i  per  cent.,  less 
tax,  payable  June  22. 

New  Tamarugal  Nitrate  Co.— Interim  5  per  cent,  (or  is,  per 
share),  less  tax,  payable  on  July  i,  the  same  as  year  ago.  -f 

Oroville    Dredging    Co.— Interim    (No,     17)    6d.    per    share, 

payable,  less  tax.  at  6s.  in  the  /'  on  June  24,  same  as  year  ago. 

i'an-.\merican    Petroleum   and    Transport  Co. — 2J   per   cent., 

payable    one  half    in   cash    and    one-half    in    I'.S.    4    per    cent. 

I.ibertv  bonds,  fractions  to  be  adjusted  as  nearly  as  po.ssiblc. 

Sungei  Buloh  Rubber, — Final  10  i>er  cent.,  less  tax,  on 
account  of  i()i7,  making  total  of  40  per  cent.,  less  tax,  for  year, 
against  65  per   cent. 

Sungei  Kapar  Rubber.— Final  for  1917  30  per  cent.,  less  tax. 
making  50  per  cent,  for  year,  against  70  per  cent.;  £t^.3f^4 
forward,  against  ;fii,66S  brought  in. 

United  Serdang  (Sumatra)  Rubber  Plantations. — Interim  to 
per  cent,  (actual)  for  year  ending  August  31  next,  payable  on 
June  29.  Tax  will  be  deducted  at  rate  of  5s.  sd.  in  ponnd.  .\ 
year  ago  20  per  cent,   interim  (actual)   was  paid. 


Mr.  C.  H.  M.  S.  Bright  has  been  appointed  managing  direc        ^ 
tor  of  the  Trust  and  Agency  Co.  of  Australasia.  it 


JlNE    I,     I918. 


Zhc  Jnvestore'  IRevtew. 


539 


INDIAN  RAILWAYS. 


OROSS  TRAFFIC  FOR  WEEK. 


Name 


Week 
ending 


Amount 


Assam  Bengal 

Barsi 

Bengal  &  N..\V.     .. 

Bengal  Nagpar 

Bombay,  Baroda  ., 

Burma 

Delhi  Umballa 

East  Indian., 

Gt.  Indian  Penln.  .. 

Luoknow-Bareilly . . 

Madras      and       S. 

Mahratta  .. 
Nizam'sGd.  (Broad) 
,,        „     (Metre) 
Ronilkund  and 

Kumaon  . . 
South  Indian 


Mar.  31 

>■  9 

..  i' 

..  13 

May  18 

Mar.  31 

Mav  18 

li 


Mar. 


St. 

1,77,986 

10,200 

4,93.3l»o 

12,35,000 

18,02,000 

6,32.276 

86,000 

26,93,000 

M>«J>700 

84,J42 

12,50,000 

>,43i'« 

75,022 

57,260 

8,59,368 


In. or  deo. 
on  last 

year. 


GROSS  TRAFFIC  TO  DATE 


Ra. 

+       37,580 

—  6,400 

—  1,88,016 
+  55.000 
+  1,16,000 
+  56,316 
+  17,321 
-f  1,91,000 

'+  3,S>,600 

+     •4.735 

—  «",435  1 
+      I5i«62 

—  3,986  I 

+       8,486 

—  1,148  I 


&i 


Amount 


t  April  I.  I  October  i. 

TRAMWAY  AND  OMNIBUS.— HOME. 


Rs. 

37,48,621 

7,78,700 

1 ,09,42,272 

5,46,00,155 

1,23.84,000 

2,".73i252 

6,14,485 

1,74,87,000 

I,59,»9r900 

14,41,276 

2,75,11,870 
34,20,293 

21,21,775 

1^,21,435 
1,69,27,820 


In.  or  dec 
on  last 
year. 


Rs. 

+  4,58,087 

—  2,28,700 

—  5,60,494 
+  48,43.907 
+  12,82,000 

—  47.132 
+  88,044 
-H  11,03,000 
■t-  4,91,802 
+  1,71,004 

+  '5.V.506 
+  1,40,263 

+   23.572 


2,16,388 
9.°I.3'2 


Dublin  United 
Hastings  and  Dist.. 
Ule  o(  Thanet 
Lancashire  United.. 
Provincial    , . 
Vorks.  (Wst.  Rdng.) 


Apr. 

5 

May 

6 

,, 

4 

M 

tl 

,, 

19 

♦  From  Oct.  i.  f  jfrom  Jan.  i. 

TRAMWAY  AND  OMNIBUS.— FOREIGN  AND  COLONIAL. 


Alabama  Power  .. 
Anglo-Argentine  .. 
Auckland  Electric. 
Brazilian  Traction  . 
Brisbane  Eleo.  Inv. 
British  Columbia  .. 
B.A.  Lacroze 
Burmah  Eleetrio  , . 
Calcutta 
Carthagena  and 

Herrerias  . . 
Cordoba  Light 

P.ST 

Hongkong  ., 
La  Plata 

Lima 

Madras  Electric   .. 

Manila  Electric 

Mexico        . , 

Rangoon 

Singapore  Electric 

Toronto 

United  of  Monte  V. 

Vera  Cruz   .. 

Winnipeg    . . 


Apr.  5 

May  27 
Apr.  12 
Mar.  § 
Apr. 
Mar.  § 
Apr. 

May  25 

Apr.     b 

Feb. 
Mar.  16 
Apr.     b 

.May  15  a 
Feb.       I 

Nov.   5 
Apr.    5  t 
Mar.  9 
,,8 
Apr. 
.Mar.   i  1 


f 

138,191 

54,989 

23.209 

M3,925,ooo 

35,530 

$129,658 

41.643 

Rs.27,614 

Rs.70,877 

4,200 

"2,972 

*I2,349 

5,169 

20,292 

Rs.  4^.003 

168,000 

♦  215,256 

5,885 

$14,054 

$531,725 

33.704 

47.700 

$66,661 


£ 

+  3". 575 
+  3.560 
+  2,031 
—  M  226,000 
+  3.910 
+  $29,210 
2.532 
Rs-3,945 
Rs. 6,047 

166 


4-  1,076 

■(-  228 

+  940 

+  1.603 

-l-Rs.  7,728 
+  25,870 
—  $108,669 


849 
$160 

$56,119 
4.474 
4.400 

$i6,gSo 


Ms. 


f 

265,020 
1,162,429 

224,466 
Ml  1186000 

137,569 
$1,032,557 

388,064 

213,042 
Rsi3ri,476 

17,558 

147.938 

$153,745 

19.972 

82,153 

Rs.  362 ,727 

335,000 

$3,193,106 

22,863 

$133,346 

$1,442,834 

206,037 

131,900 

8216,856 


£ 

51.718 
81,605 

9,8Sg 

■  M852,ooo 

9.789 

$160,244 

2,601 

Rs.4,945 

Rsloi,334 

3.032 


+  435 

-  $2,605 
-I-  2,807 
-I-  14.554 
■l-Rs. 52,350 
■^       46.570 

—  $197,227 
2,363 

$2C6 

$55,211 
19.415 
23,700 

$33,817 


6»8  days.       ♦  From  Jan.  i,      !  Nett.       a  From  luiy  i.      cTwo  weeks, 

FOREIGN  RAILWAYS. 


AlcoyandGandla.. 
Aotofagasta  (Chili) 
Arauco  . .  , . 
Argentine  N.E.  .. 
Bilbao  R.  and  Canta 
Bolivar 

Brazil  ..        ..| 

Brazil  Gi.  Southerni 
B.  Ayres  &  Pacific 

Do.  Central     .. 

Do.  Gt.  South'n 

Do,  Western 
Central  Argentine. . 
C.Ur'g'ayofMteV 

Do.  East'nBx. 

Do.  North'n  Ex. 

Do.  West'n  Ex 
Cordoba  Central  . . 
Cosia  Rica  . 
Cuban  Central 
Dorada  Extension.. 
Egyptian  Delta      ., 
Entre  Rios  . . 
French  Sante  F^  . . 
Gt.  South,  of  Spain 
Gi.West.  of  Brazil. 
Havana  Central    ., 
Inter,  of  C.  Amer... 
La  Guaira  and  Car. 
Leopoldina  . . 
Midland  Uruguay  . . 
Mogyana 

N.W.  of  Uruguay  . . 
Nitrate 

Paraguay  Central  . . 
Paulista 

Peruvian  Corpn  . . 
Salvador 

State  of  Bahia  S.W. 
.S.  Paulo  (Brazilian) 
Sorocabaoa. . 

Taltal 

United  of  Havana.. 
West'n  of  Havana. . 
Zafraand  Huelva.. 


May 

Api. 
May 
Apl. 

Mar. 
Dec. 

May 
Apl. 
May 


Ps. 


£ 

10,500 

52.755 
13,000 
10,400 
5.453 
13.000 
.Vl4,878,ooo 


1  •' 

25 
25 

,, 

25 

1, 

25 

,, 

25 

Apl. 

6 

May 

iS 

Apl. 

,, 

20 

May 

25 

I'eb 

May 

18. 

,, 

25 

,, 

T« 

Apl. 

C 

May 

2S 

Apl. 

Feb. 

Apl. 

May 

■5 

,, 

25 

Feb. 

« 

Apl. 

+ 

18 

Apl. 

May 

26 

Mar, 

* 

Apl. 

♦ 

May 

25 

2^ 

Api. 

♦ 

Mi 


66,912 
136,000 

36,405 
125,000 

71,000 
150,000 

18,796 
5.469 
4.832 
l,93t 

37,400 
2,822 

30.115 
9.500 
8,074 

20,500 
147,180 

31,062 

15,000 

10,105 

33,904 
5,000 

34.017 

12,872 


£ 
500 

9.335 

2,000 

1.500 

2,011 

962 

-hM7i6,203 

-I-    M22,712 

+  62,000 
10,302 
26,000 
26,000 
64,000 

6,778 


+ 


1,265 
2,193 

338 
4,680 

2,074 

1,966 
400 

2.307 

7,000 

53.260 


— Ps44,982 
4,300 
2,380 
4,254 
2.500 
9.349 
i,8oe 


*  Montlis.  t  From  Jan.  i.  1  From  Ju!y  1. 


Ml,793,ooo  j-t-M4i5,924| 

-        t6>7! 

+        2,654  I 
+  130  I 

4-M994,536 
4-  SlJ2,38o  ! 

-  159 

—  M2,000 

+      3.672 

-1-  M232.244 
+      4.679 

+       '3,3l6 

3,235 

_4,j6l 

cNett. 
COLONIAL  RAILWAYS. 


122,000 
33.858 
3.210 

M  2, 740,000 

S  1,079,880 

2,167 

M  40, 000 

27,299 

Mi, 839, 000 

25,282 

66,033 

13.170 

14.738 


Ps.200,400  i-Ps. 27,470 
920,685  |-f-  123,390 

52,000  j-f  8,000 
404,900  \+      70,198 

15.08314-    2,919 


113,775 

M 14506, 000 

M  538,439 

4,467,000 

289,099 

5.170.705 

2,511,000 

5,447,200 

869,485 

242.593 

157,097 

104,472 

1,480,400 

114,894 

975.193^ 

33.400 

16,562 

761,100 

294,668 

Ps.  598,077 

367,400 
413,910 

11:, 780 
24,250 

663,793 
133.064 


14,630 
•I-  M24997e6 
+  M  74 ,769 
4-  425,000 
-I-  46,182 
-  104,349 
+  213,000 
623,100 
249.544 
10,599 
40,036 
19.305 
84,880 
96,608 
169,531 
2,700 
4,993 
190,000 
108,973 


-PS1313610 
H  97,850 
I-  88,326 
-  23.330 
10,750 
I-      185,606 

-    ^       2,844 

M  3,948,000   +  M969,999 

$260,697  ;4-      ^17,004 

274,948  :  +       16,354 

136,5201-1-       15,970 

M5,70o,ooo  *  +  M1807952 

S  10402,440  +  Si  142548 

99,520  —        1,414 

M277,ooo  , —  M55,O0O 

634,569    +      "67.356 

M5, 575.000  !  4-  M704,440 

249,960  14-        61,702 

2,748,940  1 4-      661,146 

437,226)4-      1.8,399 

50,650  I  4- ^9,954 


15  days,    a  10  days. 


Beica Dec.  *c 

Canadian  Northern  May  a  1 
Canadian  Pacific  ..  ,,  21 
Gr.Trk.  Main  Line  ,,  ai 
Gr.  Trk.  Western,.  ,,  21 
Detroit  G.  H.  &  M.  „  21 
GtTkPac  Prairie  Sc  „  21 
Masbonaland  ,.Jan.  * 
Mid.  of  Westn.  Aus.  Mar.  * 
New  Cape  Central. .  Apr.  13 
Rhodesia      ..        ..Feb.'c 


'  Months, 


£ 

49.448 

$866,300 

12,847,000 

254.139 

52,418 

17.283 

•7.365 

52,822 

9.594 

2.313 

62,666 


£ 

—  1,842 
+  $5,900 
—$227,000 

4-  27,118 

+  4.989 

—  1.189 

—  6,268 

—  3,3':o 

—  1,616 
+  433 

'7,737 


£ 

173.777 

♦37,208,600 

$54,788,000 

3,880,372 

716,281 

231,005 

468,450 

226,599 

70,728 

35-347 

408,466 


t  July  I.         f  Jan.  i.       c  From  Oct.  i. 


+  6,532 
+  81320,300 
+  82081,000 
+  248,122 
+        12,099 

-  21,974 
+  91,819 
+  3,232 
+         2,301 

+         5,839 

—  10,000 


MONTHLY   STATEMBIfTS. 


Atchison  T.  St  S.  Ft 
Atlantic  Coast  Line 
Baltimore  &  Ohio  ,. 
Canadian  Northern 
Canadian  Pacific  ,. 
Chesapeake  &  Ohio 
Chicago  &  N.W.  ,. 
Chicago  Burl.  &  Q 
Chicago  G.W. 
Chicago  Mil.  &  S.P 
Chicago,  Roolt  I.&P. 
Colorado  ^Southern 
Cuba  ,, 

Delaware  &  Hud. 
Denver  &  Rio  Gran. 
Brie    .. 

Gr.Tr.  Main  Line.. 
Grand  Trunk  Westn 
DelroitG.H.&Mii. 
Gt.  Northern 
Illinois  Central 
Kansas  City  Southu 
Lehigh  Valley 
Louisville  &  Nashvl, 
Minn.  S.P.  (Soo)S  .. 
Miss.  K.  &  Texas  . 
Missouri  Pacific   . . 
NewYorkCent.&H, 
N.Y.N. Haven&H. 
NewYorkOnt.&W. 
Norfolk  &  Western. 
Northern  Pacific  ,. 
Pennsylvania    East 
and  West  Lines. . 
Phil,  and  Reading  . . 

Reading 

St.  Louis  &  San  b. . 
Seaboard  Air  Line.. 
Southern     . . 
Southern  Pacific    . . 
Union  Pacific 
Wabash 


HETT 

EARNIHOS  FOR  UONTH. 

HITT  EARNINGS  TO  DATE. 

Month. 

Amount,   'n.or  Deo 
on  last  year 

^1 

Amount. 

In.  Of  Dea. 
onlutyear 

Dols. 

Dols. 

nols 

Dots. 

Jan. 

1,912,000 

-1,689,900 

12 

47,829,000 

—  1,248,000 

M 

—  212,000 

12 

12,014,000 

+     607,000 

Apr. 

1,852,000 

—  1,165,000 

12 

30,589,000 

—  3,4»j,ooo 

541,300 

—     216,«00 

10 

3,031.400 

—  5,23«.ooo 

Fet, 
Jan. 

3.455,000 

—     720,000 

4 

8,207,000 

—  4,323,000 

627,000 

—     160.000 

a 

546,000 

—  1,394,000 

b  785,000 

—2,797,000 

12 

27,015,000 

—  3.634,000 

Feb. 
Jan. 
Feb. 
Dec 

1,535,000 

—2,276,000 

12 

32,867,000 

—  6,232,000 

151,000 

—      36,000 

2 

142,000 

—    357,000 

—2,291,000 

12 

21,967,000 

—  9,360,000 

271,000 

—    348,000 

3 

331,000 

—  1,636,000 

— 

—      11.000 

II 

5  :  20,000 

4-     370,000 

Feb. 
Jan. 

451,796 

1-    418,865 

8 

2,r42,24I 

+     817,795 

3,600 

—    720,000 

12 

5,686,000 

—  2,124,000 

Feb. 

341,000 

—      12,000 

2 

756,000 

—     294,000 

Dec. 

507,000 

+ 1,848,000 

12 

10,538,000 
b  £263,750 

—  5,277,000 

Apr. 

144,600 

-  ^51.550 

4 

—  £846,600 

,, 

6  f  28,350 

—  ii7.250 

4 

b   il38,250 

—  jC'i',750 

,, 

6  £9,600 

f        fioo 

4 

b  £48,000 
22,987,000 

—    £11,800 

Dec. 

1,165,000 

—1,401,000 

IZ 

—  6,179,000 

Feb. 

i,co8.ooo 

—   238,000 

2 
2 

531,000 

824,000 

+  2,272,000 

455,000 

+      59.000 

—       10,000 

Jan. 

(1985,000 

—1,346,000 

12 

9,403,000 

—  2,876,000 

Feb. 

1,462,000 

—     25,000 

2 

2,084,000 

—  1,289,000 

Dec. 

6126,000 

—   883.000 

12 

9,331,000 

—  3,648,000 

Feb. 

76,000 

-    112,000 

2 

201,000 

—    392,000 

Nov. 

1,690,000 

+    321,000 

5 

9,425,000 

+  1,920,000 

Feb. 

705,000 

-   243.000 

2 

b     443,000 

+  5.019,000 

Dec, 

207,000 

—1,795.1-00 

12 

23,815.000 

—  2,245,000 

Apr, 

21,000 

—    60,000 

2 

2 

14,000 
765,000 

—    185,000 

542,000 

—   833,000 

—  2,300,000 

.. 

862,000 

—   694.000 

2 

1,644,000 

—  2,139,000 

Mar, 

2,527,000 

—3,665,000 

3 

610,018,000 

-620869000 

Nov, 

b  416, oco 

—1,939,000 

11 

14,877,000 

—  6,626,000 

Feb 

131.541 

+      40,038 

2 

249,000 

+     80,230 

Dec. 

1,225,000 

—   244,000 

6 

9,576,000 
8,628,000 

+    632.000 

673,000 

—    206,000 

12 

—      24,000 

Feb. 

1,772,000 

+    412,000 

8 

17,716,000 

+  1,667,000 

Jan. 

— 

—    536,000 

12 

59,785,000 

+  7.953,000 

,, 

— 

+      72,000 

12 

42,942,000 

—  2,115,000 

Feb. 

b  166,000 

—       8,000 

2 

6     482,000 

-  1,7*4,000 

$  Includes  Wisconsin  Central.    *  Gross  earnings,    t  Surplus.    6  Deficit. 


Answers  to  Coppespondents. 

','  A  Koy  to  theso  AnsMrers  wflll  be  posteil  oarly 
each  week  for  a  subscription  of  0/V£ 
GUINEA  per  annum,  lis.  for  six  months,  or 
Bs.  3d,  tor  three  months. 

Deposits  against  future  tfuerles  may  be  lodaeO 
with  the  Publisher, 

A.  (,'.  O. — All  are  good  of  their  class,  (i)  Might  be  kept; 
they  are  well  secured,  and  are  redeemable  within  31  years. 
(2)  A  first-class  bond,  but  high  enough;  National  Bonds  will 
pay  you  as  well.  (3)  Well  managed  and  financially  sound. 
The  stock  is  irredeemable ;  but  it  pays  well  at  present  quota- 
tion.    There  is  no  reason  to  sell  just  now. 

J.  D.  R. — There  is  a  possibility,  so  you  might  hold  for  a 
time.  Business  is  at  present  prosperous,  and  likely  to  continue 
so,  but  if  there  is  a  further  advance  take  your  profit. 

Cortez. — (i)  Sell;  we  have  not  much  faith  in  the  concern. 
(2)  This  is  speculative,  of  course,  but  it  ojppears  to  have  some 
chance,   so  wait  a   little  longer. 

X.  h.  A. — The  company's  success  is  wonderful;  but  as  you 
have  a  fair  number  it  would  be  prudent  to  sell  some  of  your 
holding  and  secure  part  of  your  profit.  You  could  then  wait 
comfortably  until  the  full  scheme  is  published. 

B.  S.  J. — (i)  The  company  behind  this  is  strong,  and  the 
security  quite  good.  It  has  fallen  in  sympathy  with  values 
generally.  We  see  no  reason  to  sell.  (2)  The  war  hit  this 
business  very  severely,  and  the  company  has  not  been  well 
treated  by  the  local  authorities.  The  position  seems  to  be 
slowly  impro\ing,  so  we  think  you  should  not  sell  now.  The 
stock  is  irredeemable,  and  so  you  cannot  expect  a  recovery  to 
pre-war  levels,  but  it  may  rise  some  points  above  the  present 
level. 

Sandy. — Not  now  when  things  look  at  their  blackest.  It  may 
soon  be  the  time  to  buy. 

Javanese. — Yes,  provided  they  have  been  paid  for  with  your 
own  money,  (i)  Modest  concern,  doing  well.  (2)  Prospects 
poorish,  still  we  should  hold.  (3)  A  good  company  with  more 
than  one  string  to  its  bow.  Drawback  debentures.  (4)  Also  a 
strong  company  with  mixed  crops.    Prospects  fair. 

H.  N.  J. — (1)  The  premium  is  still  high  and  the  prospects 
clouded.  If  you  have  a  profit  take  it.  (2)  Probably  going  higher, 
but  hardly  a  sure  permanency. 


OILFIELDS 


PRODUCTION. 

Week    ended    May    19  :    Gerasah, 


Anglo-Egyptian  Oilfields. 
22  tons  (against  21  tons) ;  Hurghada,  5,032  tons  (against  4,632 
tons).  In  addition  to  this  it  has  been  found  that  the  past  pro- 
duction of  one  of  the  big  wells  in  Hurghada  has  been  under- 
estimated to  the  extent  of  5,000  tons. 

Baku  Russian  Petroleum. — 50,300  poods  of  crude  oil  for  week 
ended  May  11. 

United    British   Oilfields   of    Trinidad.— 587    tons     for   week 
ended  Mky  22. 


540 


Zbc  Jnvestors'  IRevtew. 


June  i,  1918. 


I 

See  what 


^r  Bonds 


The  £.  s.  d.  of  National  War  Bonds 

WHAT  YOU  GET  BACK 

in  Capital,  Interest  and  Bonus  if  you  buy  National 
War  Bonds,  repayable  in   1928,  of  the  value  of 


1918 
Oct.  I 

1919 
Ap.    I 
Oct.  I 

1930 
A-p.     I 
Oct.  1 

1921 
Ap.    I 
Oct.  I 

1923   ' 
Ap.    I 
Oct.  I 

1923 
Ap.    I 
Oct.  I 

1924 
Ap.    I 
Oct    I 

19JS 
Ap.    I 
Oct.  I 

1926 
Ap.    I 
Oct.  I 

1927 
Ap.    I 
Oct.  I 

1928 
Ap.    I 


Total 


£5   £20   £50  £100  £200  £500  £1000  £5000 


you 
■el 

•«^ 

2/6 

J/6 

J/6 
J/6 

J/6 
J/6 

a/6 

j/6 

9/6 
J/6 

3/6 
8/6 

1/6 
2/6 

J/6 
3/6 

J/6 
2/6 

/5  7  6 


£7.15 

for  your 
£5 


you 
«•« 

•10/- 

10/. 
10/- 

10/. 
-»/- 

10/. 
10/. 

10/. 
.  lo/- 

10/- 
10/. 

10/. 

jo/- 

10/- 
loA, 

10/. 
10/. 

10/- 
10/- 

jCii  10 


£31 

for  70ur 
£20 


you 
l« 

/I  5 
/I  S 

/'  S 
/I  5 

/'  5 

/I  5 
jCi  S 

jCi  5 

/"  5 
/"  5 

/I  S 

/"  5 

/'  S 
/I  5 

/I  S 
/I  i 

/53  J5 


£77.10 

for  yoar 
£50 


you 

£a  10 
/a  10 

/J  10 
/J  to 

/J  10 

/2  10 

/«   10 
/3   10 

/J  10 
/2   10 

/J   10 
/»  10 

/J  10 
£2   10 

/2   10 
/J  10 

£2  10 

/a  10 
/fioj  10 


£155 

foryour 
£100 


you 

|Cl 

/S 

;i5 

jCS 

li 

£S 
£s 

£s 
£s 

£i 
£i 

£s 

£5 
£s 

£i 
£i 

£"5 


£310 

for  your 
£200 


you 
lel 

*iCti  10 

fiJ  10 
19  10 

/«  10 
i"  «o 

£ii  10 
/"  10 

£ta  10 
/la  10 

;fii  10 
it«a  10 

/ij  10 
/>*  >o 

/:«» 10 

£"  »o 

^ij  10 
^13  10 

fia  10 
ij  10 

£Si7  10 


£775 

for  your 
£500 


you 
f 

'£i5 

£n 
£'5 

£n 
£25 

£n 
£'i 

£25 

£'5 
£i5 

£'i 

£2$ 

£»s 
£35 

/»s 

£'i 

£?i 

£n 

/X075 


you 

*£in 

£ii5 

£fi 

ifi'5 

£i'S 

£"5 
/'« 

£"5 

£"5 

£"S 

£t2i 

£in 

£"s 
£t» 

£"i 

£Si7S 


£1550 

for  your 
£1000 


£7750 

foryoar 
£5000 


yield ! 


'These  &Kures  ihow  full 'its  montbt  intereit  from  April  i. 
The'  first  dividend  00  Boodd  purchased  after  that  date 
win  naturallj  be  calculated  from  cctaal  date  of  purchaae. 


J 


T/ie  table  herewith  re/era  to  National 
War  Bonds  repayable  on  April  1,  192S. 
at  a  premiiim  of  £6  per  £100  invested. 

Instead  of  these,  you  can  purchase  War 
Bonds  repayable  on  April  1,  192S,  with 
(I  premium  of  £2  per  £100  invested ; 
or  Bonds  repayable  on  April  1, 1925, 
with  a  premium  of  £3  per  £100  invested. 
Till'  interest  on  all  three  series  is  the 
same,  5  per  cent,  payable  half-yearly. 


Income  Tax  is  not  deducted  when  the  dividend  is  sent  you. 
No  Income  Tax  whatever  is  payable  on  the  premium  or  bonus  you 
receive  on  redemption. 

You  can  purchase  Income  Tax  Compounded  4  per  cent.  National 
War  Bonds  at  £101  .  10s.  These  are  not  subject  to  Income  Tax, 
but  are  subject  to  Super-Tax.  They  v«ll  be  redeemed  on  1st 
April,  1928,  at  £100. 

You  can  use  National  War  Bonds  in  payment  of  Excess  Profits 
Tax,  Elstate  Duty,  or  Munitions  Levy.  For  any  of  these  purposes 
National  War  Bonds  will  be  accepted  as  the  equivalent  of  cash  at 
par  value,  plus  any  accrued  but  unpaid  interest. 

National  War  Bonds  are   guaranteed   unconditionally 
pital,  interest  and  bonus — by  the  British  State. 


From  any  Bank  or  Stockbroker. 


Printed  by  the  St.  Clemsnts  Press,  Ltd.,  Portuga'  Street,  Kingswav,  London,  W.C,  for  the  Proprietor  of  The  Imvistors'  Review,  end  Published 
by  The  FRaPEiiTOK,  Norfolk  House,  Norfolk  Street,  Slrud,  W.C.  a.— lone  i,  igeS.  tN  2618 


tlbe 


Jnveetore'  IRevfew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


Vol.  XL!.— No.  1,066.] 


NSW  SGRIBB. 


FReglstered  as  al 
L    Newspaper.    J 


SATURDAY,  JUNE  8,  iqiS. 


[Price  6d. 


CONTENTS. 


Leading  Articles :— Towards  the  Bog  of  Financial  Impotence  — 
Rubber  Market  Outlook  —  Whittling  Away  Earned  Income- 
Tax  Relief  —  The  Plight  of  the  Two  Mad  Empires  — 
"Help  Russia!"  and  Lighten  Pressure  on  Germany  — 
By-the-Way  War  Notes  —  The  Unteachable  Beast 
(pp.  543-5,  548-51  and  558). 

Passing  Events  : — War  Bond  Sales  —  Revenue  —  Postal 
Changes  —  Twopenny  Cheques  —  Decimal  Coinage  Bill  — 
May  Shipping  Output  -— •  Shell  Transport  Bonus  —  Nobel's 
Explosives  —  Lipton  —  J.  Lyons  and  Co.  —  Elder 
Dempster  —  India  General    Navigation  —  Fellows  Magneto 

—  East  Rand  Proprietary  (pp.  545-8). 

American  Business  Notes  : — United    States    Export    Restrictions 

—  Shipping  Output  —  Canadian  Foreign  Trade  —  Canada's 
Ban  on  Luxury  Imports  (p.  551). 


Insurance    News  : — Eagle-Star  Absorption    of    British 
Colonial    Mutual   —   Iron    Trades    Employers' 
(p.  551). 

Oilfields  Production  (p.  549). 
The  Week's  Stock  Markets  (pp.  554-5). 

London  Produce  Markets  (p.  555). 
Public  Income  and  Expenditure  (p.  556). 


Crown  — 
Association 


THE 


NATIONAL   PROVINCIAL 


AND 


UNION  BANK  OF  ENGLAND, 


LIMITED. 


Authorised  Capital 
Paid  Up  Capital    ... 
Uncalled  ani  Reserve  Liability 
Reserve  Fund       ... 


e 

36,000,000 
S, 476,884 

22,8  .7,536 
4,000,000 


DIRECTORS. 


C.  F.  CAMPBELL,  Tsii. 

C.  C.  CAVE,  Esq. 

J.  A.  CLUTTON-BROCK,  Esq. 

H.  G.  DEvAS,  Esq. 

Brigadier -General    H.    H.  J.   W. 

DRUM.MOND.  C.M.G. 
M.  0.  FITZGERALD,  Esq. 
G.  R.  GILLIAT.  Esq. 
W.  H.  N.  GOSCHtN,  Esq. 
The  Rt.  Hon.  LORD   INCHCAPE. 

G.C.M.G.,  K.C.S.L.  K.C  I.E. 


F.  A.  JOHNSTON.  Esq. 

Col.  Sir  C.  V.  E.  LAURIE.  Bart., 

C.B.,  D.S.O. 
F    C.  LE  MARCHANT.  Esq. 
The    Rt.    Hon.    The    EARL    OF 

LICHFIhXD. 
S    R.  PRyO<.  Esq. 
Sir  FELIX  SCHUSTER.  Bart. 
E.  A.  SMITH.  Esq. 
L.  E.  SMITH.  Esq. 
C.  H.  R.  WOLLASTON,  Esq. 


Joint   General    Managers. 

D.  J.  H.  CUNNiCK,  F.  KLEV.  A.  G.  HOPEWELL, 

H.  H.  HART  &  L.  E.  THO.MAS.  Esquires. 

HEAD  OFFICE:    IS,  BISH0P3GATE,  LONDON,  E.G. 2. 
Princes  Street  Cilice  (Union)  -  2,  Princes  Street,  E.G.  2, 
Lombard  Street  Office  (Smiths),  1,  Lombard  Street,  E.G.3. 
Cornliill  Office  (Prescott's)     -    -    -  SO   Cornhili,  E.G.  3. 

FRENCH     AUXILIARY: 

Lloyds  Bank  (France)  and  National  Provincial  Bank  (France),  Ltd. 

London  (60,  Lomi'iirtl  Street,  E  C.  3).  Paris.  Biarritz, 
Bordeaux,  Havre,  MarseilKs,  and  Nice. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorpoyated   by   the   Special   Charter  of  the   Imperial 
Japanese  Government,  1899. 

TAIPEH,    FORMOSA. 


HEAD   OFi=ICE      - 


Amoy,  Batavia,  Bombay,  Canton,  Foochow,  Hankow,  Hongkong, 
Kuikiang,  Kobe,  New  Yoik,  Osaka,  Shanghai,  Sinfiapore,  Swaiow, 
Soerabaya,  Tokyo,  and  every  important  city  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.G.  2. 


Money  and  Credit  Notes :— Credit  Superabundant  —  Banlt 
Return  —  Deposit  Restrictions  —  Binlc  Amalgamation 
Advisory  Committee  —  Canadian  Northern  Notes  — 
Exchange  Fluctuations  —  Silver  (pp.  552-4) 

Mining  News : — Zinc  Corporation  —  Princess  Estate  —  New 
Kleinfontein  —  Utah  Copper  —  British  Broken  Hill  — 
Wailii  Grand  Junction  —  Lonely  Reef  (pp.  556-7). 

Tea,  Oil,  and  Rubber :— Rubber  Market  —  Nordanal  (Johore) 
Rubber  Estates  —  Djasinga  Rubber  and  Produce  Co.  — 
United  Sumatra  Rubber  Estates  (p.  557). 

What  Balance  Sheets  Tell :— Eastman  Kodak  Co.  (of  New 
Jersey)  —  Smithfield  and  Argentine  Meat  Co.  —  Brunner 
Mond  Dividend  (p.  559). 

Company  Meetings  :— Royal  Mail  Steam  Packet  Co.  — 
Nirpuzha  Rubber  Estates  —  De  Trey  and  Co.  —  Invest- 
ment Trust  Corporation  —  British  Bank  of  Northern 
Commerce  —  The  Suez  Canal  (pp.  559-63). 

The  Week  in  Mines  (p.  556). 

Dividends  Announced  (p.  557-8). 

When  the  War  Will  End?  (o.  558). 

Company  Results  in  Brief  (p.  558). 

Answers  to  Correspondents  (p.  559). 

Traffic  Returns  (p.  564). 


THE  TRUSTEES  CORPORATION 

(LIMITED). 


CAPITAL 


£1,050,000. 


The  first  Corporation  founded  In  the  United 
Kinedom  to  act  as  F.xecutor  and  Trustee  of  Will* 
and  Settlements. 

Truatee*  fur  Debenture  Issue*. 

Agents  for  Foreign, Colonial  and  Municipal  Loans. 

Bonds    granted    to     ReoeiTers    and 
Administrators. 

Leasehold  and  SinkinR  Fund  Policies  issued. 

Safe  Deposit  and  Halls  for  Meetings  at 
Winchester  House. 

Pamphlet  sent  on  application  to  the  Secretary  at  the  Head  Office. 

WINCHESTER    HOUSE,  OLD  BROAD  ST.,  LONDON,  E.G.2. 

Liverpool  Branch  and  Safe  Deposit :  2,  Exchange  Street  East. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  i862. 

Authorised  Capital  £4,000  000 

Paid-up  Capital 1,800,000 

Reserve  Fufid    2,000,000 

BKANCHES— 

ARGENTINE,  —  Buenos  Aires,  Rosario.  Mendoza,  Concordia,  Bahia 
Blanca,  Cordoba.  Tucumlin,  I'aran^  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires  Boca  (Buenos  Airesl.  Calle  San  a  Ft  (Buenos  Aires), 
Calle  B  de  trigoyen  (Buenos  Aires)  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agenc  ),  Saho 
(Agency).  BRAZIL  —  Rio  de  Janeiro  Sao  Paulo,  Santos,  Per 
nambuco,  lara,  Bahia,  Victoria  Curityba,  Manaos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (i6  Rue  Haldvy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Dratts.  and  Cable  Transfers  issued     Bills  negotiated, 

advanced  upon  or  *ent  for  collection. — 7,  Princes  Street,  E.C.  2. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorpoiatxd  1880. 

Authorised  and  Issued  Capital,  ^6,000,000. 

Paid-up  Capital,  f 2,000,000;  Reserve  Fund,  £2,000,000 ;  togethei    (^4,oo^ooo 

Reserve  Liability  of  Proprietors 4,000,000 

Total  Capital  and  Reserves ^8. 000,000 

HEAD  OFFIGB    ...        71 ,  CORNHILL,  LONDON,    E.O.  3. 

DrtAKTS  are  granted  on  (Le  Bank's  Branchsc  throughout  the  Austcaii^ii 
States  and  Domini -tn  of  New  Zealand. 

fELEGRAPHIC  REMIITANCES  are  also  made. 

BILLS  are  purchased  or  sfnt  for  Collection 

DEPOSITS  are  reoaivad  for  fixed  periods  on  terms  wbiob  may  be  ascertained 
oa  application. 


542 


XTbe  Jiivestore'  IReview. 


Jl-.VE  8,    1918. 


BANKS. 


A      A   J 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office  ;  IS,  Gracechurch  Street,  London,  E.C.  3. 


.LO 


Capita.1  Authorised         

Capital  blued      

Capital  Paid  Up 

Rcicrve  Fund  (Undivided  Profitt) 


£1^00,000 

J,I25,000 

562,500 

708,432 


Br»nehts  I 
INDIA.  BURMAH,  CEYLON.    STRAITS    SETTLEMENTS 
»"'■         CHINA,    AND    PORT    LOUIS.    MAURITIUS. 


no  I 

The  Bank  buys  and  sells  Bills  of  Exchange,  issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  coiuectton  with 

the  East,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  current  aooOMnta  interest  is  allowed  at  i  percent,  par  annum  on 

daily  balances. 


THE  YOKOHAMA   SPECIE   BANK,  LIMITED. 

(Registered  in  Japan.) 

ESTABLISHED    1S80. 

Subscribed  Capital     ~.       ..        ..    Ten  48,000,000 

Capital  Paid  Up Yen  42,000,000 

Reserve  Fund         ..        ..  ..    Yen  23,100,000 

Head  Office :  YOKOHAMA. 
Branches  and  Agencies  at 
Bombay.  Honolulu.  Newchwang.  Shimonoseki. 

Buenos  Ayres.  Hong  Kong.  New  York.  Singapore. 

Calcutta.  Kobe.  Osaka.  Sourabaya. 

Changchun.  Los  Angeles.  Peking.  Sydney. 

Dairen  (Dalny).  Lyons.  Rang  on.  Tientsin. 

Fengtien  (Mukden).       Manila  San  Francisco.  Tokyo. 

Hanltow.  Nagasaki.  Seattle.  Tsinanfu. 

'^jr'''°'  .^  Shanghai.  Tsingtau. 

The  Bank  buys  and  recelras  for  collection  Bills  of  Exchange,  issues  Drafts 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  tran^acts  General  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  application. 
London  Offics:  7,  BISHOPSGATE.  E.C.  a. 

K   TATSUMI,  Manager. 


CAM^ADA. 


...      THE   BANK   OF 
BRITISH   NORTH   AMERICA. 

EstabUsfaed  18^.  01    biMORPORATEO  by  ROYAL  CHARTER  1840. 


PAID-UP  CAPITAL    ..  jf  1,000,000.  RESERVE  FUND 

Head  Office:— 5,  GRAIJECHURCH  STREET,  LONDON, 


. .   £630,000. 

E.C.  3. 
Court  0/ Directors. 
Lt.-Col.F.R.  S.BALFOUR.   Lieutl  E.GEOFFREY  Hon.  A.  R.  MILLS,  M.P. 
J.  H.  BRODIE.  HOARE.R.N.V.R,     MaiorC.W.TOMKINSON 

J.H.MAVNECAMPBELL.    F.LUBBOCK.  G.D.WHATMAN. 

E.  A.  HOARE. 

Deposits  received  at  rates  which  may  be  obtained  on  application. 

Bills    of    Exchange    negotiated. 
Dividends    and    Coupons   collected- 
Purchase    of   Stocks   and    Shares. 

kLt      KINDS     OF      BANKING      BUSINESS    TRANSACTED 

m£  y  - 


UNION      BANk'    d#     CANADA.! 

Incorporated  1865.  Head  Office;  WINNIPEG. 

$5,000,000 


'AID-UP  CAPITAL ,.iii       „ 

(EST   AND    UNDIVIDED    PROFITS  ..o^i A 
OTAL   AS5ETS   EXCEED         ..        ..        ., 


lonoud  -".3     •3,600,000 

!..     '<(.,.  $143,000,000 

'  The  Bank  has  over  300  Branches  in  Canada,  and  Agents  In  the  principal 
cities  in  America.       General  Banking  Business  Conductep. 

'•posits  Reoaived  for  fixed  periods  at  favourable  rates,  which  may  be 
ascertained  on  application  to 

UMtoaOfflMS  i  1.  PRINCES  STREET.  E.C.  I,  and  ZS,  HAVMARKET,  8.W 
Naw  York  Atency :  49.  Wall  Sti^et. 


.Mai  iiin/.)-,s,sn,i .d3TiMU tiHf  umiiijaAi^Ji 

CITY  OF  TOKYO  5  PElf  Cm.  LOAN  OF  1906. 

t.HE  CITY  OF  TOKYO  ANNOUNCE  that  ^80,000  Bonds 
of  the  abova  Loan  have  been  purchased,  for.  tJj»,.purpQ«e  of 
eMiMeUaXioa,-i5v4Jfee,W<JJ,ijM)dii  *C».«P«(,i¥a»P9He4i.'M  ....  .. .  .^-■.■. 

.ooiJBdtlqqjK  00 


INSURANCE. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid   to   its   Policyholders  in    1917  over 

£9,700,000 
or  over  £31,000  for  each  Working  Day. 

ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head  Office:  BARTHOLOMEW  LANE,  LONDON,  EC.  2. 


ASSETS    EXCEED    £24,000,000. 


The    Hon. 


Chairman  i 
N.    CHARLES    ROTHSCHILD. 


The  operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  information  respecting 

ESTATE    DUTY   *nd 

CHILDREN'S   EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  application 
to  the  Head  Office  as  above, 
'^p  to  any  of  the  Offices  op 
Agencies    of    the    Company. 

O.  MORGAN  OWEN,  General  Manager. 


NOTICES. 


PROVINCE    OF    NATAL. 

Borough  of  Durban  Municipal  Loan  £360,000  4  per 
Cent.  Five  Year  Bonds.    Repayable  30tli  June,  1918. 

The  Durban  Corporation  liave  notified  the  Standard  Bank  of 
South  Africa,  Limited,  that  funds  will  be  provided  for  the  repay-. 
ment  of  the  above-mentioned  Bonds  on  30th  June  next.  ! 

The  Bonds  should  be  lodged  on  or  after  the  10th  ins'ant  at  thai 
Stock,  Share  and  Coupon  Department  of  the  Siandard  Bank  o< 
South  Africa,  Ltd.,  27,  Nicholas  Lane,  E.G.,  and  must  "be  left 
three  clear  days  for  examination.  Special  forms  on  which  tha 
Bonds  must  be  listed  may  be  obtained  on  application.  1 

For  The  Standard  Bank  of  South  Africa,  Ltd.. 
.S  "  FRANCIS. SHiPTON.Manaljer. 

lOJ  Cleilienls  Lane.  London,  E.C.  4. U 1  ni.T^iO  , 
.e.'Sth  June,  1918.  .j  -'r"j.i 

.£.  .     ::,^   i  :.;rnoO 


SOCIEDAD    ANONIMA    MERCADO    CIUDAD    DE 

BUENOS   AIRES   (CITY  OF   BUENOS  AIRES    MARKET 

COMPANY,  LIMITED.) 

ISSUE  OF  £120,000  SIX  PER  CENT.  FIRST  MORT- 
GAGE DEBENTURES  OF  £100  EACH. 

NOTICE  IS  HEREBY  GIVEN  that  the  undermentioned 
Debentures  amounting  to  ;i^3,400  have  been  drawn  by  lot  in  the 
presence  6f  Richard  de  Neufville,  Esq.  and  E.  Courtney  Walker, 
Notary  Public,  for  repayment  on  the  1st  July,  1918.  ! 

A|2       137       138       213-.,  215.      232       30i       ^3c  ^kl 
'  445       482       "87       524       526       554       582       602       605 
616      627      f.54       683       720      758       870      919      MS-'. 
1023     1029     1099     1123     1167'  1174     1181.  a 

The  above  Bonds   (which   must  be   left   three  clear  days  fo^ 
examination)   will   be  payable  at   Messrs.  A.   Rilffer  and   Son'*, 
.9.  Lombard  Sfreet^^^.^,,^,  ^^;; 

.i  D.a  ..T2  QAOM  a  JO  ,<ie  -  ajiiiu  icuuriOa    , 


^be  5nveetore*  IRevtcS 


Vol.  XLI.— No.  1,066 


SATURDAY,  JUNE  8,   1918. 


■ew  Series. 


( 


Rer(istered  as  a' 
Messpaper 


//  -jfiJ  ii 

i]  'jiis  ot 

3"  arit 
I  bni; 


I    -ifl   -rifili'j/ 


PUBLISHER'S    NOTICES 

TEbe  investors'  IReVieW  is  a  subscription  Joumal,  ana  will 
be  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning 
on  the  following  terms : — 
One  Year,  £1  5s.  Od.    Six  Months,  12s.  6d.    Three  Months,  68.  6d. 

For  the  Colonies  and  Abroad  the  charge  is 

One  Year  £1  8s.  Od.    Six  Months,  14s.  Od.    Three  Months,  7s,  Od 

Short  of  Three  months  the  Price  is  6id.  per  Copy  Inland,  and 

7d.  Abroad,  Post  Free. 

Cloth  cases  for  binding  the  half  Yearly  Volumes  price  2s.  6d., 

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Cheques  and  P.O.  Drafts  should  be  made  payable  to 

**  Investors'  Review," 

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London,  W.C. 


Telephone  No. : 
Gerrard  9132. 


Telegraphic    Address : 
"  Unveiling,  London." 


Tbe  Editor  cannot  undertake  to  return  rejected  com- 
munications. 

Letters  from  correspondents  must,  In  every  case  be 
authenticated  by  the  name  and  address  of  tbe  writer. 

The  Editor  desires  It  to  be  understood  that  a  charge  is 
made  for  the  Insertion  ot  reports  under  the  beading  of 
Company  Meetings,  and  he  cannot  accept  responsibility 
tor  statements  made  therein. 


ANSWERS  TO  QUERIES. 


iiuij/u)-.    ynob 

'J  VV    l.)V3iI 
•^_l  ll  ll  P.  UTJ 

One    Reply    to    One    Question  — One    Shilling.    riAWcolj 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate  fn  i 
of  One  Shilling  each.  The  questions  should  be  number?d,[no 
and  a  copy  kept,  as  securities  cannot  be  named  with  comments  ill  )g,g 
the  printed  replies.  Questions  to  be  answered  in  thg^q^rr^^ijt  ^u^j^yj 
should  reach  us  not  later  than  Friday  morning. ..,.,(   [j;nn!Joi    eitlT 

For  a  fee  of  One  Guinea  per  annum  paid  in  adtancefiiffrrimi 
Key  to  the  previous  week's  replies  will  be  sent  early  in  Uff^nsl 
following  week.  ••ri'ibiud 

Deposits  of  "Query  Money  "  may  b«  made  in  Siivs^actf,i7^^ytH^,:^^ 
be  acknowledged  in  the  '' Answer;8."w,iqoljinjny(j;  ,,J^qtijifft  ;JJ^-,}q} 
exhaustion  will  also  be  given  there.       i   [j.-'jtr.icrti    bj;oi    To     yog 

Telegrams  advising  about  new  securities ;;C0Sti,H«l'*T*lTi99>l 
Crown  each,  plus  cost  of  the  telegram.  ::    f  ;  toiij 

Private  letters  in  answer  to  inquiries  can  be  had  :^j7/o 
desired.  The  minimum  charge  for  such  letters  is  Tfl^fl  jQp, 
Shillings,  but  for  this  three  questions  will  be  ans\yered  ,}£,.,(, ^ 
desired.  For  every  question  beyond  three  replied  to  iaw»y;995h  " 
letter  the  charge  is  Half-a-Crown  per  question.  ;;,.,y,,,    (^..^ 

Correspondents  can  have  their  lists  of  investments  overhanl^j  ^j 
and  advised  upon  by  letter  on  terms  yajrying  according  to  the  tjpi^j  p  j 


taken. 


Groups  of  Five  Stocks  for  i^iv^stf^gnt  ?v^P«>«9j;ati,W*^Wtft  «' 


One  Guinea,  each  list  different. 


■jurrjvji  lo  vruiny.  tjinul 


]Torlr;  ofi)  ci   ■j'i.lfH   n.ort  i' 


Towards  the  Bog  of  Financial 
Impotence. 

1 1  may  be  well  that  the  Governmenl  has  decided  to 
proceed  with  the  Luxury  Tax  by  way  of  a  separate 
Bill,  lor  we  have  not  yet  had  a  definition  of  what  a 
luxury  is.  All  that  has  been  arrived  at  is  the  drawing 
up  of  an  elaborate  scale  of  duties  ranging-  from  2d.  on 
articles  valued  at  from  is.  to  2S.  up  to  los.  on  pur- 
chases of  ;^'6.  Beyond  that  los.  will  be  levied  upon 
purchases  of  the  value  of  every  completed  sum  of  ^"3. 
There  is  to  be  a  corresponding  Customs  luxury  duty 
imposed  on  imports,  but  certain  drawbacks  and  ex- 
emptions are  mentioned  so  as  to  safeguard  those  who 
ought  not  to  pay  the  tax.  People  staying  in  this 
country  for  a  period  not  exceeding  one  month,  for 
example,  will  not  have  to  pay  the  Customs  Luxury  Tax 
on  luxuries  they  have  brought  with  them  and  mean  to 
take  away  again,  nor  will  articles  imported  by  a  dealer 
for  sale  be  taxed.  The  ultimate  buyer  residing  here 
will  alone  be  liable  to  the  duty-  Perhaps  it  will  be  as 
well  to  give  the  scale  here  for  reference.  The  chief 
value  of  the  proposed  tax,  it  seems  to  us,  will  be  to  the 
Civil  Service.  A  splendidly  wide  field  of  employment 
will  be  opened  up  for  the  multitudes  now  swarming  in 
all  Government  Departments. 


Rate 

Rate 

Raie 

— 

of 
Duty, 
s.    d. 

— 

of 
Duty. 

— 

of 
Duty. 

Between — 

Between — 

s.  d. 

Between— 

s.    d. 

IS.  and 

2S. 

0    2 

iSs.  and 

21S. 

3    0 

72s.  and   78s, 

12    0 

2S.  and 

3S. 

0    4 

2XS.  and 

24s. 

S    6 

78s.and   84s. 

13    0 

33.  and 

4S. 

0     5 

24s.  and 

27s. 

4    0 

84s. and   90s. 

14    0 

4S.  and 

.■is. 

0    8 

27s.  and 

303. 

4     6 

90s.  and   96s. 

15    0 

5s.  and 

6s. 

0  10 

30s.  and 

^HS. 

5    0 

96s.  and  I02S. 

iC     0 

6s.  and 

7S. 

I     0 

33s.  and 

:t6s. 

-i     6 

I02s.and  loSs. 

17     0 

7s.  and 

8s. 

I     2 

36s.  and 

30s. 

6     0 

io8s.  and  114s. 

18     0 

8s.  and 

qs. 

I     4 

39s.  and 

42s. 

6     6 

114s.  and  120S, 

ig     0 

gs.  and 

I  OS. 

I     S 

42s.  and 

4SS. 

7     0 

los.  for  every 

los.  and 

IIS. 

I     8 

48s.  and 

-143. 

8     0 

complete 

IIS.  and 

I2S. 

I  10 

54s.  and 

60s. 

9     0 

sum    of    ;^  3 

I2S.  and 

ISS. 

2     0 

60s.  and 

66s. 

lo     0 

beyond  £6. 

15s.  and 

i8s. 

2     6 

66s.  and 

72s. 

II     0 

With  this  before  them,  the  draughtsmen  of  the  Bill 
will  still  require  to  exercise  unusual  skijll  and  in- 
genuity to  de\  isc  what  is  a  luxury  and  what  is  not,  and 
wc  begin  to  fear  a  little  that  all  this  ingenuity  in 
striking  the  spender  on  every  hand  will  tend  to  defeat 
the  object  aimed  at,  and  to  lessen,  instead  of  increas- 
ing,  the  fertility  of  the  revenue.       After  all,   there  is 


only  so  much  that  the  most  thciityi  can  spate,  ,^«-^'.,r(j 
the  demand  of  the  tax-collector  goes  beyond  that  r%ijli,r)a 
no  matter  what  the  ingenuity  displayed  in  framinj^,.j^ 
taxes,  the  result  will  surely  be  sterility.  The  inconi,e-.|'^j, 
tax  is  now  quite  as  high  as  it  can  be  if  it  is  to  leave  tlie,|^,y 
lower  grades  of  those  who  have  to  pay  it  in  full  anything^  ^^^'j^ 
over  to  meet  other  taxes  with.  Those  who  smoke  hO-Yj^  ;p,f( 
to  pay  more,  those  who  drink  much  more ;  clothes  ^^^pg^j 
dearer,  every  description  of  food  is  dearer ;  travellii\g;,^j.(j 
is  much  dearer — and  we  are  now  assured  by  Sir  Alb^fJ^  "^j 
Stanley  that  the  increase  in  railway  fares  is  really  tax^ ,,,,; 
tion  imposed  without  bothering  about  formalities — ari,d'i,!j 
although  the  spending  power  of  the  community  is  sus- 
tained and  augmented  for  the  time  being  by  the  enor- 
mous war  expenditure^  that  cannot  be  counted  oi>  ^o  ,,,, 
last  much  beyond  the  end  of  the  war.  There  will  follow  '^", 
a  reaction  which  must  make  itself  conspicuous  at  the ,  ...^ 
Treasury,  sooner  and  more  emphatically  almost  than  ,,:[ 
anywhere  else.  Hundreds  of  thousands  will  then  be  j^^ 
face  to  face  with  want,  and  the  present  system  of  it\i^^^j 
direct  taxation  will  be  in  peril.  What  is  required  to-day  ,',^, 
is  a  statesman  whose  grasp  of  the  future,  its  risks,  re-,  ,^^ 
quirements  and  dangers,  is  sufficiently  great,  and  whp^e  .,^,r 
courage  in  seeking  out  and  applying  sure  remedies  is  ■', 
sufficiently  high  to  enable  him  to  lay  at  least  the  founda-  ,^ 
tion  for  a  revenue  so  deep  rooted  that  adversity,  up  jtp,,,,;. 
a  point,  may  increase  rather  than  diminish  it;  or,'?^t,,,;,. 
least,  supply  an  efficient  stimulus  to  its  increase.,,  ,,,[-,■,.„.-, 

Most  of  the  new  taxes.wihich  Jiave-beeiij  or  are  being, 
inriposed  arc  taxes  fertile  only  in  the  day  of  prosperity, 
whereas,  above  all,  we  want  a  revenue  that  will  stand 
adversity.  The  only  durable  source  of  such  a  revenutyr 
let  it  be  reiterated  continually,  is.  the  land.  Some- 
thing is  being  done:to  incrjcasc  the  yield  of  the  soil  in 
this  country— a  duty  shamefylly,  neglected,  for  geticf.a- 
tions  in  our  pride  of  empire — but  nothing  has  tpee.n  done 
to  enlarge  t|ie  Government's,  part  in  the  prjOceeds.  ,.  , 

The    Avar  /mjiif   toave    to  rlisfi    yet    dnother  _,  j(ear>ij 
perhaps  ■  •  longer,      the!'  "apathetic  i    citizen    ■;  saysJnr.,- 
therefore   we  need   be   in  no   hkste.      But    it    is  i  not 
so.     Thb  imperative  duty  laid  upon  every  individual  in 
the  kingdom  is  to  do  what  in  hint  lies  to  niake  rthe  «oi)   i 
of  these  islands  produce  sufficient  for  the  waius  of;  tiitfj/ 
population,: -with  something, overv  and* thbiduty  ofi.tlvwe/.lr. 
who  gfoverteiiisto  make  sure  that  the  necessary  share -of't  '•o 
this  new  real  wealth   finds  its   way  to  the  Exchequer. 
What  is  the  use  of  increasing  the  production  of  the  soil 


544 


Zbc  3nve6toi8'  IReview, 


jLNJi  8,   lyib. 


if  the  whole  of  the  profits  of  that  enlarged  fertility  goes 
to  the  private  owner  of  the  land  ?  That  waste  stopped, 
and,  whether  he  will  or  no,  the  present  Cha-icellor  of 
the  Exchequer  will  have  to  turn  his  feet  the  other  way 
and  direct  his  revenue  oHicers  to  other  sources  of  in- 
come than  2d.  in  the  is.  on  "  luxuries  "  bought. 
Neither  he  nor  his  predecessors,  for  instance,  have 
done  anything  to  help  the  town  dwellers ;  they  have 
never  even  said  a  word  about  the  weight,  often  a 
crushing  weight,  of  local  taxation.  Yet  in  two  direc- 
tions, in  England,  at  any  rate,  there  is  at  hand  an 
iinmense  reservoir  whence  means  could  be  drawn  not 
only  to  lighten  the  load  the  citizen  has  to  carry,  but  to 
set  him  free  to  contribute  more  largely  towards  the 
costs  of  the  war. 

This  journal  has  often  alluded  to  the  wealth  now 
immune.  There  is,  for  example,  the  exemption  of  un- 
tenanted houses  from  bearing  any  share  of  the  local 
burdens.  That  is  not  just.  The  oviners  of  these  houses 
enjoy  all  the  amenities  provided  by  the  local  rates.  In 
towns  they  enjoy  the  benefit  of  the  lighting  and  drain- 
age, of  road  maintenance  everywhere,  und  the  up- 
keep of  what  may  be  called  the  amenities  of  the  dis- 
trict ;  but  so  long  as  a  house  remains  untenanted,  the 
owner  goes  scot  free  of  all  local  charges.  That  ought 
not  to  be,  any  more  than  that  waste  land  bought  by 
speculative  builders  with  a  view  to  what  they  call 
"  development  " — the  building  of  short-lease  houses 
and  creation  of  ground  rents — should  year  after  year 
in  the  same  manner  g.o  entirely  imtouched  by  rates. 
In  these  two  directions  alone  there  is  even  now,  and  in 
spite  of  the  allotment  fever  which  has  covered  some  of 
the  "  jerry  builder  "  and  other  wastes  with  vegetables, 
a  large  source  of  revenue. 

Then  there  is  the  short-lease  infamy  itself — for,  legal 
though  it  be,  no  less  severe  epithet  applies — which  in 
the  South  of  Rnafland,  at  least,  is  the  most  fertile 
source  of  wealth — and  of  robbery — the  framers  of  our 
class  land  laws  ever  hit  upon.  One  day  the  owners 
'ivingon  the  revenue  of  these  legal  frauds  -vill  assuredly 
suffer  for  the  sins  of  their  forbears,  the  inventors 
thereof.  A  needy  population,  rack  rented,  rates 
harried,  will  turn  upon  them  and  summarily  "  cut " 
the  legal  "barbed  wire."  We  cannot  sympathise  with 
those  who  now  hope  for  .some  redressal  of  the  iniustices 
to  their  private  advantage,  but  we  do  say — and  in  say- 
ing it  must  be  in  harmony  with  the  Prime  Minister — that 
the  exactions  levied  under  this  unjust  land  system  on 
holders  of  leases  at  their  expiration,  and  the  fines  ex- 
torted and  enhancement  of  rents  imposed  on  renewal, 
all  of  which  now  go  to  the  ground  landlord,  ought  to 
become  the  property  of  the  State — or  the  bulk  of  the 
money — nnd  to  l>e  directly  payable  into  the  Treasury. 
Here  are  sources  of  revenue  durable  and  bound  in  time 
to  increase.  Moreover,  as  the  fertility  of  the  soil  brings 
back  prosperity  to  the  community,  a  large  share  of 
the  increased  rents  should  become  the  propertv  of  the 
nation — a  sure  part  of  its  revenue.  But  our  Chancel- 
lors of  the  Exchequer  have  never  even  given  it  a 
thought,  so  far  as  we  can  judge,  .md  from  what  they 
say,  to  any  one  of  these  treasures  of  wealth.  By  con- 
tinuing to  follow  the  macadamised  financial  highway 
along  which  our  Treasury  is  now  jogging  in  seeming 
content  we  shall  presently  reach  the  bog  of  impotence. 


Rubber  Market  Outlook. 

For  a  long  time  past  we  have  been  advising  extreme 
caution  in  regard  to  purchases  of  rubber  shares,  and  it 
may  be  useful  to  take  stock  of  the  position.  As  a  pre- 
liminary, we  may  state  emphatically  that  we  do  not 
think  there  is  anything  wrong  with  the  plantation  in- 
dustry, which  has  established  itself  on  a  thoroughly 
sound  basis,  and  proved  that  it  can  make  very  hand- 
some profits  under  normal  conditions.  It  reached  a 
point  of  very  substantial  development  at  a  most  oppor- 
tune moment,  coincident  with  the  greatly  extended  use 
of  motor  traction,  which  would  be  almost  impossible 
without  the  employment  of  rubber  tyres,  and  it  has 
always  been  confidently  anticipated  that  when  the  price 
of  the  raw  material  can  be  brouglit  down  to  a  sufficiently 


low  level,  it  may  be  advantageously  used  for  many  other 
purposes — for  flooring,  paving,  &c.  We  have  always 
believed  and  maintained  that  the  true  interests  of  the 
industry  woiild  best  be  served  by  reducing  the  price  o( 
the  commodity  as  rapidly  as  the  increased  production 
would  permit,  in  order  to  stimulate  the  more  extensive 
use  of  the  article. 

Of  course,  war  requirements  and  the  shortage  of 
shipping  make  this  ideal  impossible  of  realisation  for 
the  time  being,  although  events  are  shaping  in  th>; 
direction  of  forcing  down  the  price  to  a  point  which  i.s 
causing  something  like  dismay  in  many  quarters,  and, 
as  usual,  the  investing  public  will  have  to  face  very  con- 
siderable losses.  It  is  very  natural  and  right  that  com- 
panies should  try  to  get  the  best  possible  price  for  their 
produce,  and  from  the  narrow  view  of  immediate  self- 
interest  they  were  probably  justified  in  doing  what  the\ 
could  to  prevent  a  glut  in  the  market  and  a  slump  in 
values.  Unfortunately,  we  fear  it  is  a  fact  that  efforts 
have  frequently  been  made  to  "  rig  "  the  market,  and 
certainly  it  is  true  that  there  has  been  a  very  persistent 
propaganda  with  the  object  of  persuading  people  that 
rubber  ought  to  be  worth,  at  one  time  or  another,  3s., 


Anglo- Uutch    

Anglo-Malay  (2/)     

Bandar  Sumatra 

Banteng     

Batu  Caves 

Bukit  Rajah     

Carey  United 

Consolidated  Malay  (2/)   

Damansara 

Fe  'erated  Selangor   

Golconda   

Golden  Hope 

Highlands  and  Lowlands 

Inch  Kenn  th 

Java  Amalgamated   

Java  Investment 

Kamuning  (2/)     

Kepitigalla  

Kepong(2/; 

Kuala  Lumpur    

Labu  (2/) 

Ledbnry    

Linggi   (2/) 

London  Asiatic  (2/)    

Lumut 

Malavalam   

Pataling  (2/)    

Rubber  Trust 

Seaport 

Singapore  Para  {2/)    

Straits  Bertam  (2/) 

Sungei  Way 

Taiping  (2/) : 

Tandjong 

Tehran  

Telogoredjo 

Tempeh  Java  (2/)    

United  Serdang  (2/)   

United  Sua  Belong     

Vallambrosa  (2/) 


S:-o> 


13/6 

3/ 

17/6 

.9i 
5 

7/* 

2 

4 
I 

k 

i/i- 

8/ 

zj 

3/ 

13/ 
5/9 

19/ 

»9/ 

li 
7/3 
1/2 
1/6 
2/9 
3 

/lOi 
2 
20/ 
I 

/6 
7/ 
6/3 
9/6 


Highest. 


igi6. 


2917; 


21/ 
12/6 
47/6 
53/6 
I5i  I 

45/    1 
14/   1 

8a/ 

7i 
70/ 

65/ 
59/6 

39/ 
24/6 
4/6 

24/ 
.6/3 

95/ 

9/ 

62/6 

24/ 

8/6 

49/ 

3^/3 

36/3 

26/9 

26/3 

4/3 

6/3 
95/ 

4/3 
90/ 

77/6 
4*/ 
3/3 
13/ 
62/6 

19/9 


36/ 
16/ 

52/ 
70/6 

174 
II 

52/ 

159 
5i 
8,^ 

79/6 

84/ 

65/6 
7l 

40/ 

33/6 
5/ 

25/6 

20/ 

5? 

12/ 

3§ 
31/6 
10/ 
50/6 
45/ 
46/6 
34/3 
33/3 

5/3 

8/ 
5i 

5/_ 

5tc 
79/ 
55/ 

3/3 
12/9 

78/ 
27/ 


w  Cu 


■3-  fc 


26/3 
1 1/9 
37,6 
50/ 
12S 

61 
36/3 
10/3 
70/ 

6i 
58/9 
61/ 

52/9 

5i 

25' 

22/6 

3/6 

20/6 

J5/ 

ssjfe 
7/3 

47/6 

22/ 
7/9 

37/6 

35/9 

33/6 

23/ 

23/6 
3/9 
5/9 

92/6 

3/6 

75/ 

57/6 

35/6 

2/3 

8/9 

54/ 
18/ 


19/ 

6/ 

48/9 
56/ 
131/ 
118/ 
38/ 
8/9 
48/ 
100/ 
38/6 

7»/ 
29/ 
105/ 
41,0 

2/10 
25/6 
10/ 
50/ 

6/ 
40/ 
14/6 

5/9 
32/ 
35/6 
16/3 

21/ 
3/ 
6/6 

69/ 

2/6 

79/ 

60/ 

53/ 

2/4 
8/6 

71/0 
ij'3 


4s.,  or  5s.  per  lb.  Some  of  the  effects  are  well  illus- 
trated in  the  adjoining  table,  which  shows  the  prices  of 
representative  shares  immediately  before  the  war,  the 
highest  touched  in  it)i6  and  1917,  the  present  quota- 
tion, and  the  approximate  share  price  at  a  flat  valuation 
of  ;^ioo  per  acre.  Most  of  the  figures  in  the  last 
column  are  taken  from  "  Rubber  Form  at  a  Glance," 
compiled  by  Mr.  H.  K.  Calder,  and  published  by  Effing- 
ham Wilson — a  very  useful  handbook,  but  perhaps  just 
a  little  too  complicated  for  the  average  investor.  Wc 
have  omitted  1915  prices  from  the  table,  because 
although  the  general  trend  was  upwards  during  most  of 
the  year,  the  big  advance  did  not  occur  until  1916,  and 
with  only  three  exceptions  there  was  a  further  sub- 
stantial rise  last  year.  Since  then  the  reaction  has  made 
rapid  progress,  and  buyers  who  got  in  nenr  the  top — 
there  must  be  thousands  all  ovpr  'hei.ountry — have  to 
face  very  serious  losses,  as  will  be  seen  from  the  pre- 
sent level  of  quotations  compared  with  those  ruling  a 
few  montlis  ago,  when  buying  was  most  active. 

Let    us    trv    tn    look    at     this    business    friirlv    and 


June  8,    1918. 


Zbe  :tnve8tot8'  IReview 


545 


squarely  in  the  face.     We  know  that  on  well-managed 
estates  rubber  can  be  produced  at  gd.   to  lod.  per  lb. 
Naturally  it  costs  more  on  young  estates  which  are  only 
beginning  to  yield,  but  it  may  be  taken  as  certain  that 
any  proposition  which  cannot  work  down  to  the  average 
may  have  to  fall  out  entirely.     .\t  present  the  margin 
between  cost  and  average  selling  price  is  so  large  that 
it  is  possible  for  every   kind  of  hopeless  proposition  to 
make  a  show  for  the  time  being,  but  that  kind  of  thing 
cannot  go  on  indefinitely.     Take  tea  plantations  as  an 
example.     In  the  early  days  they  were  regarded  with 
just  as  much  favour  as  the  rubl>er  share  is  to-day,  but 
they  had  to  come  down  to  a  purely  commercial  basis, 
where  the  gross  profit  seldom  exceeds  50  per  cent.,  and 
when  all  the  bills  are  paid  there  is  only   10  to  12  per 
cent,  for  the  proprietors.     Of  course,    several    of   the 
original   rubber  companies   were  started    with  such   a 
small   capital — just  as   the  pioneers    always    do — that 
they  cannot  be  taken   as  a  fair  criterion  of  the  whole  ■ 
industry,  and  they  are  entitled  to  make  their  hundreds 
per  cent,  on  their  adventurers'  shares. 

That  brings  us  on  to  the    fundamental    proposition, 
which  is  simply  this  :  The    original    pioneers    planted 
their  estates  at  a  cost  of  ;^io  to  ;^i2  per  acre.     Now 
that  it   has  been    discovered    that    jungle — previously 
worth    shillings    per   square    mile — can   be   turned    to 
account,  the  price  of  land  has  gone    up    hundreds  per 
cent,  wherever  there  is  a  chance.  Consequently  the  later 
companies  have  had  to  pay  much  more  for  their  estates 
than  the  others    did.     All    the    same    it    is    perfectly 
feasible  at  the  present  day  to  lay  down  a  rubber  planta- 
tion at  a  cost  of  ;^5o  to  ;^6o  per  acre,  which  will  cover 
all  expenses  of  development   and  upkeep  till   the  fifth 
year,  when  production    commences.      The    Americans 
have  found  that  out,  and  they  have  been  taking  up  suit- 
able land.s — of   which  there  is  practically  an  unlimited 
quantity — all  over  the  proved  areas  in  the  Middle  East. 
Perhaps  the  most  significant  factor  in  the  rubber  situa- 
tion is  that  the  statisticians,  who   profess  to  give  all 
the  information  necessary  to  form  a  sound  judgment  on 
the  position,   studiously   ignore   what   American  enter- 
prise has  accomplished  in  opening  up  new  estates.    It 
is  certain  that  if  an  estate  can  be  developed  at  a  cost 
of  ;^"5o  or  ;^6o  per  acre,  capitalisation  on  a  basis  of 
;if  200  to  ;^'250  per  acre  must  be  regarded  as  excessive, 
although    we  do  not  mean  to   suggest  that    this   is  a 
definite  clue  to  the  value  of  any  particular  share.     On 
the  contrary,  some  of  the  shares  which  are  on  a  basis 
of  ;^20o  or  more  seem  to  be  better  value  than  others 
at  ^8o  to  ;^ioo.     But  it  is   a  rough  sort  of  guide — 
always  bearing  in  mind  that  there  are  millions  of  acres 
which  can  be  brought   into  bearing  at  £3°  or  a  little 
more.     If  you  pay  .£250  for  the  same  thing,  the  risk  of 
ultimate  loss  must  be  very   considerable,   as  adequate 
dividends  cannot  be  paid  on  this  figure  if  the  price  of 
the  material  falls  much  lower. 


Passing   Events. 

A  better    show  was  made  last  week    by   the  sale  of 
National  War  Bonds  of  the   Bank  of   England    issue. 
They  numbered  9,259,  or  960  more  than  in  the  previous 
week,  and  the  amount  applied  for  was  ;£,"5,o62,ooo  more 
than  in  the  previous  week  at  ;^'i6,297,ooo.     With  this 
addition  the  totals  have  been  brought  up    to    605,597 
applications  and  ;^725,44i,ooo,    and   of    this    amount 
;^'i28,6i3,ooo  has   beeji    received    within    the    current 
Budget  year.     In  regard  to  other  forms  of    debt    con- 
tracted in  the  week  ended  May  25,  the  purchases  of  the 
Post  Office  issue  of  National  War  Bonds  fell  off  2,360 
to  10,440,  involving  a  decrease  in  the  money  received 
of  ;^37,86o,  and  bringing  down  the  total  of  the  week 
to  2^316,340.     Add  these  figures  to  the  previous  to  date 
totals  relating  to   this    series,   and    we    get     1,170,894 
applications  for  an  aggregate    of    ;^29, 216,000.      The 
number  of  War  Savings  Certificates  sold  in  the  same 
week     was     1,673,230,     making     the     total     to     date 
199,268,703.       This       translated       into       money       is 
p^i, 286,296    for    the     week,    and     an     aggregate     of 
;^"i53, 187,817.     Of    that    aggregate   ;^i5,30o,ooo  has 
been  paid  over  to  the  Treasury  since  April  t. 

For  the  past  week  the    aggregate    expenditure    was 
;^i6o, 555,000,  and  the  contribution  of  the  taxpayer  to 
meet  it  was  ;^i 0,938,000.     These  two  amounts  present 
a  startling  contrast,  which  is  lessened,  but  not  so  very 
much  lessened,  by  looking  only  at  the  actual  expendi- 
ture, apart  from  the  finance  expenditure,  as  it  may  be 
called.   This    actual     was    last    week    ;^8o,536,ooo,  or 
almost  eight  times  the  amount  of  the  actual  revenue. 
On    supply    services     the      week's     outgoings     were 
;^42, 616,000,  or  ;^6,o88,ooo  per  day,   but  the  week's 
outgoings  included  ^37,901,000  of  war  debt  interest, 
part  of  the  ;^5o,ooo,ooo  odd  due    on  June    i,  so    the 
total  mounted,  and  had  added  to  it  ;^500,ooo  spent  as 
"depreciation  fund"    in  the   support  of    the    market. 
Coming  now   to  finance   expenditure,    ;^79, 136,000  of 
new  Treasury  bills  had  to  be  paid  off,  and  small  repay- 
ments of  War  Loan  and  Exchequer  bonds,  amounting 
to  ^67,000  also  repaid,   together  with  ;^30o,ooo  ad- 
vanced to  buy  bullion,  completed  the  formidable  mass  of 
^160,555,000.      To    obtain    that    money    new    supply 
Treasury  bills  to  the  amount  of  ;£'92,233,ooo  had  to  be 
discounted,    or  ;^i3,25i,ooo  more  than  fell  due  to  be 
repaid.     Adding  this  to  the  amount  of  Treasury  bills 
already  outstanding  we  get  a  total    floating    debt    of 
;^i, 005, 587,000  in  that  form,  the  largest  recorded  since 
March  9.     Then   ;^5oo,ooo    was    received    from   War 
Savings  Certificates  sold  and  ;^i4,90o,ooo  came  from 
"  other  "  war  debt  sources,  doubtless  from  the  United 
States.       Also       National       War      Bonds      provided 
;^,'i 5,754,000,   but  even   with   all    these    helps    another 
;^2 1, 000,000  had  to  be  raised  in  the  form  of  temporary 
advances  from  tTie  Bank.     The  total  of  these  advances 


As  to  the  immediate  outlook,  we  cannot  say  that  it  is 
particularly  promising.     Imports  into  both  this  country 
and  the   United   States  are  restricted    by    Government 
orders,  and  although  it  has  generally  been  urged  that 
the  Central  Powers  will  be  huge  purchasers  of  rubber 
after  the  war,  it  is  doubtful  whether  they  will  have  the 
money  to  pay  for  such  materials  to  any  great  extent, 
however  much  they  be   in   need  of   them.     There  will 
probably  also  be  shipping  and  other  difliculties,  but  we 
need  not  enter  into   speculative    possibilities    of     that 
kind.      It  is  sufficient  to  point  out  that  stocks  are  ac- 
cumulating  in  the   East  and   that  the  price  of  rubber 
in  Singapore  is  very  much  lower  than  it  is  in  London. 
So  far,  the  scheme  for   restricting  output   by  20   per 
cent,  does  not  appear  to  have  availed  much  in  steady- 
ing the   market,  but   quite  the   reverse.      In  any  case, 
the  smaller  production  means   increased   cost,  and  the 
margin  of  profit  will,  we  fear,  tend  steadily  lO  dwindle. 
While  we  should  not  recommend  the  wholesale  selling 
of  shares  at  the  present  level,   we  think  it  most  likely 
that  quotations   will   go   lower,   and  prudent  investors 
would,   we   think,   be   wise  to   lighten   their   holdings. 
The  time  has  not  yet  come,  at  any  rate,  for  those  who 
bought  near  the  top  to  begin  to  think  of  averaging. 


Men    Exempted 
or  Ineligible 

should  provide  for  their  future 
and  that  of  their  dependants 
by  taking  up  an  Endowment 
Assurance   now  with   the 

SCOTTISH  WIDOWS  FUND 

Founded  1815. 

FUNDS:    S2  MILLIONS.  CLAIMS  PAID:    47  MILLIONS. 

The   largest   British    Mutual    Life   Oflloe. 

Send  for  FREE  BOOKLET. 

Haad  Office:  9,  St.  Andrew  Square,  Edinburgh. 

(G.  J.    LIDSTONE.    Manager  and  Actuary.) 

London  Offices:  28,  Comhi!!,  E.G.  3,  and  17,  Waterloo  Place,  S.W.  i. 


546 


Ubc  Juvestous'  IReview. 


Junk  8,  1918. 


— which  are  really,  much  as  Mr.  Kitson  avers,  loans 
from  the  nation  to  the  nation  through  the  instru- 
mentality of  the  Banlc — deducting  the  amount  repaid, 
has  now  reached  ;^i 23,000,000,  and  seems  destined  to 
grow.  Even  all  these  aids  and  supplements  were  in- 
sufficient by  ;^"5, 109,000  to  cover  the  demands  of  the 
week,  so  that  the  Exchequer  balances  had  to  be 
drawn  upon  for  this  deficiency  to  that  extent.  They 
were  thereby  brought  down  to  ;^i 0,640,000,  and  a  year 
ago  they  were  ;^i 6,645 ,000.  Perhaps  the  reinvestment 
of  the  war  dividends,  and  as  much  more  as  can  be 
spared,  will  during  the  next  two  or  three  weeks  change 
somewhat  the  appearance  of  the  Treasury  account.  If 
not,  then  Mr.  Bonar  Law  will  have  to  bestir  himself. 
We  are  reaching  a  critical  hour  in  the  war  of  credit  just 
as  in  the  war  at  the  front.  Of  last  week's  revenue  more 
than  half,  or  ;£5"5, 610,000,  came  from  income-tax,  super- 
tax, and  excess  profits,  this  last  alone  providing 
;^3, 55 1,000  of  the  entire  tax  and  monopoly  income  of 
the  week. 


We  never  expected  that  the  financial  measures  of 
the  Government  would  stir  up  any  formidable  opposi- 
tion, such  as  would  prevent  them  from  passing  into 
law.  The  Hou.se  of  Commons  is  now  sufficiently  awake 
to  the  peril  in  which  the  kingdom  and  Empire  stand 
to  be  capable  of  any  factious  criticism  or  prolonged 
opposition  to  anything  the  Government  may  propose. 
Therefore  the  postal  rates  were  duly  accepted,  and  are 
now  in  force,  and  on  Tuesday  afternoon  the  House 
accepted  the  twopenny  stamp  on  cheques.  We  must 
imitate  Parliament's  docility,  and  all  accept  and  do  our 
best  to  maintain  the  revenue  at  the  highest  pitch.  Per- 
haps in  connection  with  the  new  postal  rates  it  may  be 
useful  to  put  them  down  for  future  reference.  There 
is  now  no  halfpenny  post.  Postcards,  whether  for 
home  or  foreign  use,  cost  a  penny  stamp,  just  as  in 
France,  and  the  lowest  rate  on  letters  is  three-half- 
pence, but  for  that  charge  a  weight  of  matter  up  to 
4  ozs.  may  be  sent.  Beyond  4  ozs.  the  letter  charge  rises 
by  a  halfpenny  for  every  2  ozs.,  or  fraction  thereof. 
Then  the  postal  rates  for  printed  paper  will  be  identical 
with'  the  letter  rate  up  to  4  ozs.,  and  beyond  that  every 
increase  of  2  ozs.,  or  fraction  thereof,  in  the  weight 
will  be  charged  an  additional  halfpenny.  A  book 
weighing  just  under  f  lb.  would  thus  cost  3|d.  to 
transmit  by  post.  In  short,  a  halfpenny  in  the  lb.  has 
been  added  to  the  printed  matter  rate.  The  inland 
parcel  rate  is  also  changed  to  6d.  for  any  weight  under 
3  lbs.,  gd.  between  3  and  7  lbs.,  and  a  shilling  between 
7  and  1 1  lbs.,  the  maximum  weight.  This  is  a  simpli- 
fication and  in  some  ways  a  reduction-  The  three- 
halfpenny  letter  rate  extends  to  all  oversea  countries 
where  hitherto  the  letter  postage  has  been  a  penny  for 
I  oz.  The  charge  for  the  postage  of  newspapers  is 
untouched. 


Some  objections  were  raised  to  the  twopenny  stamp 
on  cheques,  but  when  it  came  to  a  division,  only  40 
voted  against  it,  while  205  sup»ported  the  Government. 
The  tax  was  therefore  passed  by  a  majority  of  165, 
and  we  hope  that  the  fears  many  expressed  and  feel  re- 
garding its  fertility  will  all  be  agreeably  falsified.  It 
is  impossible  to  form  a  reliable  opinion,  because  in 
money  matters  no  one  can  gauge  the  influence  of  even 
a  trivial  addition  to  the  taxpayers'  burdens  such  as 
the  doubling  of  the  cheque  tax  is.  Mr.  Law  opined 
that  it  would  have  no  effect  on  inflation  of  the  currency 
and  certainly  cheques  do  not  inflate  it,  although  the 
credit  behind  them  may.  But  the  danger  is  that  in- 
flation may  be  intensified  through  e<-onomy  in  the  use 
of  the  cheque  and  extravagance  in  the  use  of  the 
Treasury  note.  However,  we  shall  do  the  best  we  can 
to  cherish  hope. 


it  as  the  newspapers  gave,  that  he  is  a  currency  pundit. 
In  declaring  that  "  no  Bill  had  ever  been  presented  to 
either  House  of  Parliament  which  had  anything  like 
the  general  approval  accorded  to  this  Bill  by 
banking,  commercial  and  professional  organisations 
throughout  the  country,"  he  was  going  beyond 
the  facts.  The  country  has  never  had  any  opportunity  of 
pronouncing  upon  the  fad.  It  is  an  esoteric  kind  of 
cult,  much  discussed  in  bank  parlours,  perhaps,  too,  at 
gatherings  of  dabblers  in  statistics  and  economics,  and 
behind  it  unquestionably  stands  the  large  majority  of 
expert  Hebrew  dealers  in  exchange  to  whom  the  deci- 
mal system,  if  adopted  in  this  country,  would  be  a  boon 
in  several  ways,  and  not  least,  probably,  in  enabling 
them  to  secure  larger  profits  in  their  business.  But  the 
general  public,  as  Lord  Hylton,  speaking  for  the 
(Government,  .sensibly  pointed  out,  bad  never  been  con- 
sulted about  it— least  of  all  the  wage-earner  and  his 
wife,  the  people  most  of  all  concerned.  No  evidence, 
his  lordship  added,  had  been  brought  forward  by  Lord 
Southwark  to  show  that  representatives  of  labour  or 
retailers  who  would  be  seriously  afi^ected  by  ;he  change, 
had  ever  been  instructed  or  .sounded  upon  it.  It  is 
all  a  matter  of  what  might  be  called  academic  finance, 
although  the  adjective  is  not  an  apposite  one,  for  the 
recognised  academic  authorities  in  this  country  have 
always  treated  financial  affairs  with  the  contempt  of 
the  supercilious  bookworm. 


We  must  humbly  confess  ourselves  ignorant  of  Lord 
Southwark's  eminence  as  an  authority .  on  coinage. 
Until  he  moved  the  second  reading  of  the  Coinage 
{Decimal  System)  Bill  in  the  House  of  Lords  last  Tues- 
day we  had  no  suspicion  of  his  condition,  and  are  not 
sure,  even  after  having  read  his  speech,  or  as  much  of 


Lord  Hylton  might  have  been  stronger  on  another 
point.  He  said  "  it  was  doubtful  whether  for  purposes 
of  retail  trade  and  the  payment  of  wages,  shillings 
and  pence  were  not  superior  to  decimal  coinage."  We 
do  not  think  it  doubtful  at  all.  Our  coinage  is  much 
more  elastic  in  the  matter  of  small  change,  and  there- 
fore much  more  fair  to  the  poor  than  any  decimal  coin- 
age yet  known  to  the  world.  In  what  direction,  then, 
would  the  benefit  come  to  the  public?  We  see  none. 
There  is  always  talk  about  the  hindrance  to  foreign 
trade  caused  by  our  money,  but,  in  spite  of  that 
alleged  hindrance,  our  foreign  trade  was  the  largest 
in  the  world  before  the  war,  and  our  goods  found,  and 
find,  large  markets  in  all  parts  of  the  world.  It  was 
not  want  of  a  decimal  coinage,  but  want  of  projjer 
education  and  training  A\'hich  constituted  the  real  diflTi- 
culty  our  merchants  had  to  encounter.  If  they  had 
been  taught  arithmetic  in  a  sensible  fashion,  and 
taught  foreign  languages,  not  as  dead  but  as  living, 
there  would  not  have  been  any  diificulty  at  all  with 
differing  moneys.  But  such  difficulty  as  may  exist 
would  only  be  shifted,  not  removed,  by  changing  our 
coinage,  for  you  cannot  make  the  value  of  our  own  or 
any  other  coinage  rigid  and  invariable  in  every  country. 
The  actual  rate  of  exchange  has  to  be  calculated 
whether  you  are  dealing  with  pounds,  shillings,  and 
pence,  or  with  florins,  or  dollars,  or  francs  and  deci- 
mals thereof,  or  krone  and  piastres.  The  vvhole  agita- 
tion over  the  decimal  system  of  coinage  is  thus  a  simu- 
lated affair.  There  is  no  real  call  for  the  change,  nor 
any  necessity  for  it,  but  it  pleases  old  gentlemen  who 
think  they  know  something  about  finance  to  patter 
about  it,  and  it  occupies  a  certain  amount  of  time,  .so 
that  it  may  keep  a  few  restless  people  out  of  mischief. 
Lord  Leverhulme  moved  the  rejection  of  the  Bill,  and 
the  debate  was  adjourned  without  a  division.  In  doing 
.so  he  remarked  that  "  a  sovereign  divided  into  a  thou- 
sand mils  had  been  correctly  described  as  carrying  the 
greatest  inconvenience  to  the  greatest  number  of 
people,"  and  suggested  that  the  decimal  coinage  should 
be  founded  on  "  the  British  halfpenny,"  which  had 
been  in  use  for  over  12  centuries.  That  goes  to  the 
extreme  of  the  grotesque,  and  is  rather  a  hupiorous 
suggestion  which  we  commend  to  the  decimal  coinage 
fanatics.  Certainly  the  .sovereign  as  a  "  monetary 
unit"  or  "standard  of  value"  is  quite  impossible  in 
a  decimal  coinage. 


Last  month's  shipping  output  was  cheering,  and  at 
197,274  tons  represents  an  average  of  1,407,000  tons 
per  annum.  The  maximum  asked  for  by  the  Govern- 
ment was  3,000,000  tons  per  annum  and  the  minimum 


JirNE   8,    1918. 


Zbc  Jnvestors'  IReview. 


547 


(, 800,000,  so  that,  although  the  May  return  is  excellent, 
and  the  highest  of  any  month  of  the  past  thirteen,  it  is 
still  short  of  what  is  required.  Nevertheless,  the  ship- 
builders deserve  the  commendation  bestowed  upon  them 
by  Lord  Pirrie,  Controller-General  of  Merchant  Ship- 
ping. "  It  reflects  with  credit  on  the  whole  industry," 
he  said,  "  and  particularly  on  those  firms  engaged  in 
the  titting-out  of  vessels."  These  seem  to  be  working 
with  a  fine  organisation  and  skill,  and  Lord  Pirrie  men- 
tions one  instance  of  a  5,000-ton  steamer  which  was 
completed  for  .service  within  ig  days  of  the  launch.  As 
the  events  in  the  United  States  prove,  co-ordination  and 
minute  regulation  of  the  work  will  have, one  influence  in 
speeding  up  the  output,  and  it  must  never  be  forgotten 
that  all  the  time  our  shipyards  are  handicapped  by  the 
necessity  of  repairing  ships  that  come  into  port 
damaged.  With  all  our  energy,  however,  and  all  the 
ability  displayed  in  organising  the  industry,  we  should 
have  been  badly  off  for  tonnage  without  the  help  of 
America.  The  shipyards  there  are  going  to  teach  us  not 
a  few  valuable  lessons  in  the  way  to  speed  up  ship- 
building. 


Rumours  have  been  in  circulation  for  some  time  past 
that  the  .Shell  Transport  Co.  was  to  follow  the  ex- 
ample of  so  many  others  in  distributing  a  bonus  by 
capitalising  the  major  portion  of  its  reserves.  These 
are  now  confirmed  by  the  announcement  that  it  is  pro- 
posed to  issue  three  new  shares  in  respect  of  every  five 
held,  and  the  bonus  proves  to  be  even  more  handsome 
than  was  generally  anticipated.  Recently  the  price  of 
the  shares  has  risen  to  the  neighbourhood  of  7,  and 
when  the  distribution  is  made  the  holder  will  be  in 
possession  of  eight  shares  worth,  on  the  present  basis, 
41  each.  But  these  schemes  are  seldom  put  forward 
until  the  directors  are  reasonably  certain  that  the  divi- 
dend will  not  have  to  be  cut  down  proportionately,  and 
it  is  highly  probable  that  the  quotation  will  settle  down 
somewhere  round  about  5.  A  year  ago  the  company 
issued  a  million  shares  at  par,  in  the  proportion  of  one 
new  share  for  every  four  held,  and  that  operation  also 
provided  a  substantial  bonus,  so  that,  with  their  hand- 
some dividends  of  7s.  per  share,  tax  free,  the  fortunate 
holders  have  done  extremely  well. 


Nobel's  Explosives  Co.,  Ltd.,  could  not  submit  ac- 
counts a  year  ago  owing  to  the  liability  under  the 
Munitions  levy  and  excess  profits  duty  not  being  ascer- 
tained. This  has  not  even  yet  been  adjusted,  either 
for  1916  or  1917,  but  the  directors  have  made  a  close 
estimate  of  the  amount  likely  to  be  payable,  and  now 
submit  accounts  for  the  two  years  combined.  These 
show  that  the  trading  profits  amounted  to  ;^i,875,ooo, 
and,  after  providing  ;^3 14,000  for  income-tax  and 
;^i03,ooo  for  depreciation,  there  is  a  nett  profit  of 
;^'r,3ig,ooo.  Last  year  a  dividend  and  bonus  of  20 
per  cent,  was  paid,  and  the  dividend  this  time  is  again 
20  per  cent.,  tax  free,  while  ^500,000  is  placed  to  re- 
serve funds  and  the  balance  forward  is  ;£^84,88o,  or  a 
little  more  than  was  brought  in  from  1915.  The  re- 
sults arc  quite  up  to  the  most  sanguine  expectations, 
the  profit  for  191 5  having  been  ;^.e;30,ooo,  but  some  dis- 
appointment was  caused  in  the  market  owing  to  the 
omission  of  any  definite  statement  xvith  regard  to  the 
much-discussed  merger.  .\11  that  is  said  is  that  the 
principles  have  been  agreed  by  all  the  merging  com- 
panies, but  the  accountants  are  still  busy  trying  to  de- 
termine the  exchange  value  of  the  various  -hares,  and 
the  directors  hope  to  be  in  a  position  fo  lay  the 
: scheme  before  the  proprietors   at  an   early  date. 


Lipton,  Ltd.,  has  again  made  striking  progress  in  the 
year  to  March  10,  and  it  is  satisfactory  to  be  told  that 
while  the  actual  rate  per  cent,  of  profit  earned  on  the 
borne  trade  has  been  lower  than  in  the  previous  twelve 
months  the  larger  volume  of  business  has  substantially 
increased  the  earnings.  The  export  departments  have 
been  adver.sely  affected  by  shipping  and  other  restric- 
tions, but  the  company's  Eastern  and  Australasian  trade 
has  been  greater.  Accordingly  we  find  that  the  trading 
profits  amounted  to  the  record  figure  of  ;^544,3oo,  an 


increa.se  of  ;^i02,ooo,  following  a  gain  of  ;^i48,ooo  a 
year  ago,  so  that  there  has  been  an  expansion  of  no 
less  than  a  quarter  of  a  million  since  1915.  Moreover, 
it  has  been  found  possible  to  reduce  management  ex- 
penses by  ;^i3,ooo,  and  the  nett  profit  after  writing  ofi" 
;^44,ooo  for  depreciation  and  setting  aside  ;^54,6oo 
for  deferred  repairs  amounts  to  ;^374,ooo,  an  increase 
of  ;4 1 1 5. 000,  but  ;^i  5,000  less  was  brought  in,  and 
the  available  balance  is  just  ;^ioo,ooo  higher  at 
^'441,000.  Out  of  this  ;^  100,000  against  ;^75,ooo  is 
placed  to  reserve  fund,  which  now  amounts  to 
^"350,000,  and  ;^i5,ooo  is  added  to  the  pension  fund. 
The  ordinary  dividend  is  raised  from  7J  per  cent,  to 
i2i  per  cent.,  and  the  balance  forward  is  increased  by 
;^8,ooo  to  ;^74,7oo,  subject  to  excess  duty.  It  is  stated 
that  the  company's  plantations  in  Ceylon  have  been 
maintained  at  their  usual  high  state  of  efficiency,  but 
in  common  with  the  general  experience  the  crops  have 
been  less,  and  the  prices  realised  for  both  tea  and  rubber 
were  lower  than  in  the  previous  year.  Changes  in  the 
balance-sheet  are  comparatively  trifling,  but  the  com- 
pany has  ;^i7o,ooo  cash  in  hand  and  investments 
amounting  to  ;^i 50,000,  so  that  the  financial  position 
is  as  strong  as  could  be  desired.  It  may  be  mentioned 
that  the  dividend  is  the  highest  paid  in  the  history  of 
the  company,  and  it  is  evident  that  the  overhauling  of 
the  management,  which  became  necessary  a  few  years 
ago,  has  proved  entirely  satisfactory. 

As  usual,  the  directors  of  J.  Lyons  and  Co.,  Ltd., 
issue  a  very  complete  summary  of  the  accounts  in  an- 
nouncing the  final  dividend  of  3s.  per  share,  which 
again  makes  up  the  total  distribution  to  25  per  cent, 
for  the  twelve  months  ended  March  31.  Nett  profits 
amounted  to  ;^3i6,300,  an  increase  of  ;^48,ooo,  but 
;^8,ooo  less  was  brought  in.  Provision  for  deprecia- 
tion requires  ;^i 5,000  more  at  _;^i20,8oo,  and  ;<^40,ooo 
against  nil  is  carried  to  reserve,  with  the  result  that 
the  balance  forward  is  reduced  by  ;^i5,ooo  to  ;^6,8oo. 
Evidently  the  company  has  had  a  very  successful  year 
in  spite  of  the  difficulties  caused  by  rationing  and  other 
restrictions,  increased  prices,  expenses,  &c.     But   the 


3.  HAVE  EXACT  FARE  READY 

This  will  avoid  disputes  as  to  change. 

This  will  assist  the  conductors  and 
conductresses  to  accomplish  their  task 
quickly. 

THIS  SHOULD  BE  A  RULE  OF  GOOD  CONDUCT 
AS  IT  IS  IN  THE  INTERESTS  OF  THE  PUBLIC. 


GPi^L 


Bltctric  R«ilway  House,  Broadway,  Wettminiter,  S.W.1. 


548 


XTbe  investors'  IReview, 


June  8,  1918. 


multitudinous  girl  clerk  proves  an  excellent  and  profit- 
able patron. 


It  is  stated  in  the  report  of  Elder  Dempster  and 
Co.,  Ltd.,  that  the  company's  fleets  were  requisitioned 
ill  April  last,  since  which  d:ite  the  steamers  have  been 
run  for  Government  account.  Nevertheless,  profits 
amounted  to  the  substantial  sum  of  ;^366,900,  and, 
after  placing  ;^5o,ooo  to  reserve  fund  (raising  it  to  a 
round  million),  a  final  dividend  of  6  per  cent,  is  de- 
clared, making  10  per  cent,  for  the  year,  and  leaving 
;^4,ooo  more  at  ;£83,63o  to  be  carried  forward.  Owing 
to  national  lequirements,  the  direct  service  of  steamers 
between  Canada  and  South  Africa,  which  was  estab- 
lished in  1903,  has  been  temporarily  abandoned,  but 
the  directors  hope  that  the  Government  may  shortly  see 
their  way  to  release  sufficient  tonnage  to  enable  this 
important  inter-Colonial  service  to  be  resumed. 

Although  tbe  trading  profit  of  the  India  General 
Navigation  and  Railway  Co.,  Ltd.,  last  year  was 
;^i5,ooo  less  at  ;^i6o,ooo,  the  results,  on,  the  whole, 
may  be  regarded  as  entirely  satisfactory.  Deprecia- 
tion required  ;^7,ooo  less  at  ;^70,ooo,  and  while  an 
additional  grant  of  ;^5,oog  was  made  to  the  provident 
fund,  there  was  an  equivalent  saving  in  interest  and 
exchanp*".  Consequently  the  nett  profit  comes  out  at 
;^65,76o,  a  decrease  of  ;^7,ooo,  but  ;^'5,c)Oo  more  was 
brought  in,  and,  as  the  insurance  reserve  required  less, 
it  is  possible  to  repeat  the  dividend  of  8  per  cent,  and 
still  carry  forward  ;!^2,ooo  more  at  ;^26,48o.  The 
branch  railway  did  a  little  better  with  a  nett  profit  of 
;^23,q6o,  against  ;^22,55o,  and  the  dividend  from  the 
Sylhet  Line  Co.  was  increased  from  9  per  cent,  to  14 
per  cent.  During  the  year  operations  were  hampered 
by  further  Government  requisitions  of  the  company's 
vessels,  but  the  purchase  of  most  of  these  has  now 
been  completed,  and  the  company  is  able  to  set  aside 
a  reserve  of  ;^i42,26o  for  fleet  rep'acement.  This 
brings  the  total  reserves  up  to  ;^352,oco,  and  at  all 
points  the  position  of  the  business  appears  to  be  ex- 
cellent. 


Fellows  Magneto  Co.,  Ltd.,  which  was  formed  some 
18  months  ago,  has  made  a  promising  start,  as  shown 
in  the  accounts  for  the  period  to  December  31.  Trading 
profits  amounted  to  ,-^15,520,  and,  after  writing  off 
;^"2,i50  for  depreciation  and  a  proportion  cf  the  pre- 
liminary expenses,  there  is  a  nett  profit  of  ;^8,5io,  out 
of  which  it  is  proposed  to  pay  a  dividend  of  9^  per 
cent,  on  the  participating  preferred  shares  and  15  per 
cent,  on  the  ord.,  leaving  ;^i,i8o  to  be  carried  forward. 
The  accounts  show  that  the  issued  capital  is  ;^66,8oo, 
of  which  ;^i6,625  has  been  expended  on  land  and 
buildings,  ;^i7,690  on  plant,  and  ;^33,500  on  stocks. 
There  is  a  balance  of  ;£^3,77o  ca.sh  in  hand.  Reference 
is  made  to  the  recommendation  in  Lord  Burleigh's  re- 
pKjrt  that  the  importation  of  magnetos  from  enemy 
countries  should  be  prohibited  for  at  least  five  years 
after  the  war,  and  that  those  from  elsewhere  should 
be  charged  an  ad  valorem  duty  of  33J  per  cent. 
Whether  anything  of  this  kind  will  be  done  remains 
to  be  seen,  but  it  is  satisfactory  to  know  that  the 
British  industry  is  now  firmly  established. 

A  full  statement  regarding  the  East  Rand  Proprie- 
tary position  was  made  at  the  meeting  at  Johannesburg 
by  the  chairman,  Mr.  E.  A.  Wallers,  from  which  it  is 
clear  that  the  mine  has  reached  the  beginning  of  the 
end.  He  explained  that  the  results  generally  of  the 
operations  for  1917  were  infinitely,  worse  than  any- 
thing previously  experienced,  and  described  the 
position  now  as  one  of  acute  gravity.  The  re- 
port shows  that  1,741,300  tons  were  crushed,  yield- 
ing 2  IS.  I  id.  per  ton,  a  decrease  of  197,900  tons  and 
of  2s.  6d.  per  ton  respectively.  Working  costs  rose  to 
19s.  gd.  per  ton,  and  the  net  working  profit  was 
';^i88,95i,  a  decrease  of  ;^3o8,2i4  on  1916,  the  aver- 
age being  2S.  2d.  per  ton,  against  5s.  2d.  Develop- 
ment results  were  again  highly  unsatisfactory,  only 
424,67s  tons  of  payable  ore  being  developed.  Reserves 
of  ore  show  a  decrease  of  1,468,000  ton?  to  2,732,000 


tons,  valued  at  6.2  dwts.  This  decrease  is  accounted 
for  by  the  excess  of  ore  milled  over  that  devetoped,  and 
by  ruling  out  730,000  tons  which  cannot  be  profitably 
worked  under  existing  conditions.  The  chairman  dealt 
exhaustively  with  the  factors  that  had  been  fatal  to  the 
carrying  out  of  the  policy  of  securing  the  future  of  the 
mine.  The  exploitation  of  the  .southern  areas  was  de- 
pendent upon  profitable  milling  operations  being  carried 
on  during  six  or  seven  years  which  it  would  take  to 
prove  those  areas,  but  all  available  areas  have  been  ex- 
amined, and  it  has  been  found  impossible  to  replace 
the  ore  drawn  from  reserves  to  enable  a  monthly  profit 
of  ;^i  1,000  to  be  obtained.  On  the  basis  of  milling 
118,000  tons  per  month,  the  present  ore  reserve  and  an 
additional  source  of  ore  supply  were  expected  to  last 
till  the  end  of  1919,  when  milling  will  probably  cease. 
Owing  to  stoppage  of  development  it  is  hoped  that  a 
profit  of  ;^io,ooo  a  month  may  be  maintained  from 
August.  At  the  end  of  1919  there  would  be  a  deficit, 
after  allowing  for  debenture  redemption,  _^75o,ooo,  of 
;^309,ooo,  which  could  be  easily  met  by  the  sale  of 
plant,  leaving  a  surplus.  If  the  southern  development 
scheme  '  were  to  be  proceeded  with,  altogether 
;^i, 200,000  would  be  required,  for  it  would  take  nearly 
two  years  from  the  end  of  1919  to  reach  the  reef.  To 
raise  this  sum  would,  as  the  chairman  explained,  be  im- 
possible in  the  face  of  the  consistently  poor  values  dis- 
closed by  development,  and  the  very  uncertain  prospect 
of  opening  up  a  payable  mine.  It  is  an  unfortunate  end 
to  a  mine  which  10  years  ago  gave  promise  of  a  long 
and  prosperous  life ;  but  the  explanation  of  its  down- 
fall is  that  the  payable  ore  found  in  the  upper  levels 
has  not  persisted  in  depth,  and  that  appears  to  be  due 
to  the  curious  geological   features  of  the  property. 


Whittling  Away    Earned  Income-Tax 
Relief. 

One  feature  of  the  Budget,  of  which  we  have  not  heard  any 
discussion  so  far,  is  the  huge  reduction  which  is  being  gradu- 
ally made  in  the  income-tax  favour  shown  to  earned  income,  as 
compared  with  income  which  is  unearned.  The  differentiation 
between  these  two  kinds  of  income  is  one  important  element  in 
our  present  taxation  system,  which  is  not  due  to  the  present 
Prime  Minister's  famous  Budget  of  1909-10.  It  had  been  intro- 
duced earlier  than  that  by  Mr.  Asquith.  It  seems  to  rest  on 
sound  fact  and  principle.  Indeed,  it  is  interesting  to 
know  that  the  essential  difference  of  the  two  classes  of  income 
had  still  earlier  been  referred  to  in  the  calm  and  important 
atmosphere  of  the  judicial  bench.  What  a  man  earns  by  brain 
or  muscle  dies  with  him.  At  least,  the  earning  power  cannot 
survive  him,  but  it  may  go  long  before  that.  A  sudden  break- 
down of  mental  or  bodily  health  ends  it.  Nay,  in  some  cases 
from  their  very  nature  the  power  cannot  last  long.  Income  from 
funded  and  invested  wealth,  on  the  other  hand,  runs  on  whether 
the  owner  lives  or  dies.  Accordingly,  it  seems  to  us  that  the 
only  cause  for  wonder  is  that  the  rebate  of  income-tax  in  favour 
of  earned  income  was  not  introduced  long  before  1907. 

And  what  we  wish  now  to  draw  attention  to  is  the  fact  that 
this  rebate  is  being  whittled  away.  At  the  present  rate  it  will 
soon  be  non-existent.  We  do  not  wish  to  weary  our  readers 
and  obscure  our  point  by  masses  of  figures,  and,  therefore,  \\e 
shall  confine  ourselves  to  the  illustration  of  an  income  of  ;f  i.ooo, 
and  to  the  period  since  April,  1913  ; — 
Income  /i.ooo. 


Year. 

Tax.  if 
Uoearned. 

Tax,  if 
Earned. 

Rebate  to 
Earned 
Income. 

Percentage 

of 

Rebate. 

1913  14    .... 
1914-1S    .... 
1915-16    .... 
1916-18    .... 
1918-19    .... 

£58 
/83 

/37 

£90 

£15° 

£21 

/60 
/50 

^37 

36 
40 

40 

28i 

20 

The  first  year  dealt  with  above  was  the  last  pre-war  year. 
The  important  column  is,  of  course,  the  last,  showing  the  per- 
centage by  which  in  the  different  years  the  unearned  income 
rate  has  been  modified  to  the  disadvantage  of  earned  income. 
The  outstanding  fact  in  the  above  table  is  that  in  the  war  years 
1914-15  and  1915-16  the  rebate  was  40  per  cent.,  while  for  this 
year  it  is  proposed  to  be  only  one-half  of  that.  Undoubtedly, 
earned  income  is  being  severely  hit.  If  this  year  an  earned 
income  of  ;f  1,000  were  taxed  in  the  same  proportion  as  in 
1914-16,  it  would  pay.  not  £if.o.  but  only  £.i\2,  which  would 
be  a  saving  of  £5^-  No  doubt  all  the  money  is  required,  and 
the  ^^150  may  not  be  too  large  in  itself,  but — and  it  is  only  an- 
other way  of  saying  the  same  thing — if  the  earned  ;fi.ooo  is  to 
pay  /'150,  then  the  jf  1,000  unearned  ought  to  pay.  not  ;f  187, 
but  £2^,0,  in  order  to  preserve  the  40  per  cent,  rebate  in  favour 
of  earned  income,  as  already  established  by  the  then  Chancellor 
of  the  Exchequer  in  the  war  years  1Q14  and  1Q15.  In  any 
case,  it  is  important  that  attention  be  drawn  to  the  present 
tendency  to  fritter  away  the  earned  income  relief. 


June  8,    1918. 


^be  Jnvestora'  IReview* 


The  Plight  of  the  Two  Mad   Empires. 


549 


So  absorbed  is  the  public  mind  in  the  agony  of  war  as  now  at 
its  height  on  the  strenuously  contested  battlefields  o£  France 
and  Flanders,  that  the  mind  refuses  to  pay  attention  to  any- 
thing else.  We  are  all  apt  in  consequence  to  overlook  many 
things  which  are  surely  symptomatic  of  the  coming  smash  and 
dissolution  in  Central  Europe.  Regarding  the  Balion  cockpit 
and  Russia,  the  news  that  is  allowed  to  come  out  is  for  the 
most  part  coloured  so  as  to  look  highly  favourable  to  the  Ger- 
man conqueror,  as  favourable  as  that  revealed  by  the  hysterical 
call  for  armed  intervention  in  Russia,  noticed  in  another  column. 
But  in  spite  of  the  diligence  of  the  German  disseminator  of  lies, 
■we  gather  that  all  things  are  not  quite  as  they  seem  in  absorbed 
Austria  and  Hungary  or  in  Russia.  The  Habsburg  imposture 
is  dying  hard,  but  dying  it  is,  and  every  now  and  then  a 
flash  of  light  which  illuminates  is  thrown  upon  the  condition 
into  which  the  populations  of  the  two  doomed  empires  are 
falling.  "  Loaded  food  trains  are  continually  looted "  is  a 
report  from  Switzerland,  and  should  this  crop  season  turn  out 
to  be  as  unfertile  as  the  last  three  at  least  within  the  two 
empires,  then  famine  promises  to  be  master,  and  may  even  stop 
the  fighting.  Already  the  stricken  populations  are  breaking 
out  into  revolt,  not  merel3'  in  Bohemia  and  in  the  Slav  portions 
of  the  Austrian  Empire,  but  within  the  Teutonic  sections  thereof 
as  well. 

Disaffection  is  paralysing  the  Austrian  offensive ;  and  every- 
where in  Russia  the  Germans  are  exhibiting  their  invariable 
characteristic,  stupid,  tactless  rapacity.  The  municipal  authori- 
ties of  Warsaw,  who  claim  the  repayment  of  the  forced  loans 
taken  by  the  Germans  from  thecit}-,  have  been  told  to  go  to  the 
so-called  "  Polish  "  Finance  Minister,  that  is  to  say  to  go  to  a 
German  functionary  who  can  be  relied  on  to  repudiate  all 
liabilities.  Elsewhere  in  Russia  the  locust-devouring  capacity 
-of  the  Teuton  is  rapidly  increasing  the  number  of  his  enemies. 
Rumania,  as  we  have  already  explained,  is  being  turned  inside 
out,  emptied  of  its  wealth,  and  all  the  sources  of  new  wealth 
as  much  as  possible  laid  hold  of.  And  this  is  called  making 
"peace." 

But  with  it  all  the  Prussian  war  fiend  does  not  succeed  in 
filling  the  mouths  of  his  victims  at  home,  and  the  ex-German 
Food  Controller,  Batocki,  writing  in  the  Frankfurter  Zeitung, 
confesses  that  "  German  isolation  from  the  world  becomes  ever 
more  effective,  and  its  effects  are  aggravated  by  the  frequent 
unfavourable  harvest  weather  in  Germany  and  elsewhere,"  so 
that  it  is  difficult  to  get  enough  to  eat.  "  The  temporary  bridge 
which  has  heen  artificially  constructeci,"  he  says,  "  is^but  small 
and  tottering,  and  it  spans  a  precipitous  abyss  of  destruction." 
The  phrase  is  worth  remembering,  for  Germany  is  unquestion- 
ably on  the  edge  of  that  abj'ss  to-day,  and  all  the  swagger  and  all 
the  rush  of  her  legions  with  their  artillery,  flame-throwers,  and 
gas  will  not  long  keep  her  out  of  it.  So  besotted  has  the 
German  mind  become,  that  it  is  incapable  of  comprehending 
where  the  war  is  leading  it,  and  still  thinks  "force"  lord  of 
all;  still  looks  round  for  the  world  admiration  of  its  diabolical 
crimes;  still  talks  of  commanding  ils  "peace";  still  imagines 
that  when  the  Junker  diplomat  palavers  and  imitates  in  his 
speech  tHe  sentiments  of  civilised  peoples  he  is  believed,  and 
still  dreams  of  a  world  all  eager  for  German  shoddy  and  other 
manufactures  when  the  war  is  over.  All  that  is  required  for 
success  appears  to  be,  in  Hamburg's  imagination,  bagmen  to 
scour  the  world,  disguised  as  Englishmen,  and  incapable  of 
being  betrayed  by  their  accent.  The  oddest  fact  is  that  numbers 
of  people  here  appear  to  continue  to  admire  the  German  for 
>iis  astuteness. 


^' Help  Russia!"— and  Lighten  Pressure 
on  Germany. 

It  is  right  and  to  be  commended  that  the  Timrs  should  keep 
■before  the  eyes  of  the  nation  the  needs  and  perils  o£  Russia. 
In  last  Tuesday's  issue  there  was  an  appeal  setting  forth 
the  danger  of  German  penetration  in  Russia,  and  emphasis- 
.ing  the  imperative  mandate  that  Russia's  condition  laid  upon 
the  Allies  to  take  active  steps  to  intervene  and  save.  The 
Allies  are  accused  of  stoicism  by  this  writer,  of  a  "  stoicism 
approaching  stupidity."  The  writer  bemoans  himself  that 
all  the  attention  is  given  to  the  Western  offensive,  and  thinks 
we  excuse  our  indifference  by  saying,  "  Russia  betrayed  us; 
let  her  go  her  own  way."  German  success  is  alleged  to  be  great 
in  the  propaganda  wherebj'  Russia  will  be  drawn  into  subjec- 
tion by  the  all-devouring  Prussian.  "  In  five  years  easily 
acquired  concessions  will  give  Germany  a  grip  on  Russian 
affairs  which  will  be  unshakable.  In  10  years  or  earlier  we 
•shall  see  a  Russian-German  alliance  again  menacing  the  peace 
•of  the  world  at  a  dozen  points."  It  is  shrill,  shrill  and  alarm- 
ing. The  appeal  wound  up  with  the  statement  that  "the 
greatest  question  in  the  world  to-day  is  whether  Russia  is  to 
he  abandoned  or  whether  she  is  to  be  saved ;  whether  Western 
ideals  are  to  prevailin  the  country  whose  potential  power  will 
'be  the  balance  in  history.  It  is  not  a  question  of  years  in 
which  to  decide.     It  is  a  matter  now  of  months,  if  not  of  weeks." 

This  is  rather  wild.  We  can  to  some  degree  sympathise  with 
the  motives  which  seem  to  have  inspired  the  writer  to  employ 
such  strong  language,  but  yet  must  protest.  We  remain  unmoved 
by  the  appeal,  because  it  so  exaggerates  the  peril,  and  betrays 
strong  hostility  to  the  Allies.  In  the  very  same  issue  of  the 
Times  the  insincerity  of  the  remonstrance  is  shown  up  by  its 
T'eking  correspondent,   who  tells  us  that  while  there   is   no  pre- 


sent necessity  for  intervention  in  Eastern  Siberia,  it  is  obvious 
that  intervention  of  a  nature  acceptable  to  the  Russians  would 
have  far-reaching  results." 

He  goes  on  to  suggest  the  presence  of  a  small  Allied  force 
as  something  for  the  Russians  to  rally  round.  It  might  thus 
secure  control  of  Eastern  Siberia,  and  speedily  extend  its  influ- 
ence over  Western  Siberia.  Russians,  he  assures  us,  would 
greatly  welcome  a  mixed  Allied  force  sent,  not  to  support  any 
political  party,  but  to  assist  in  the  restoration  of  order  and  the 
maintenance  of  security.  At  the  same  time,  the  educated  Rus- 
sians strongly  deprecate  occupation  by  any  foreign  Power 
although  all  decent  Russians  in  the  Far  East  "  are  eager  to 
see  Russia  again  aline  herself  with  the  Allies."  They  advance 
the  reasonable  plea  that  Allied  assistance  towards  the  restoring 
of  order  can  best  be  rendered  in  the  part  of  Russia  furthest 
away  from  German  power,  a  part  to  which  the  Allies  have 
unrestricted  access  by  sea. 

These  two  contributors  may  be  said  to  complement  and 
neutralise  each  other,  for  the  Peking  man  talks  soberly,  and 
discounts  the  feverish  eagerness  of  the  anonymous  writer  of 
the  appeal  for  'instant  help.  The  Germans  are  not  making 
way  in  Russia,  as  the  alarmist  would  have  us  believe ;  their 
progress  is  not  that  of  the  conqueror  marching  with  acceptance 
from  triumph  to  triumph. 

So  far  as  the  truth  can  be  ascertained  from  what  is  per- 
mitted to  escape  from  the  country  in  the  way  of  facts,  the 
longer  the  German  hordes,  whether  armed  men  or  mere  cun- 
ning bagmen,  are  suffered  to  work  their  will  with  the  Russian 
people,  the  more  will  they  be  hated  and  the  surer  will  be  the 
adhesion  of  the  Russian  Slavs  to  the  side  of  the  Allies.  Of 
that  we  have  no  do-^bt  whatever,  and  regard  it  as  a  distinct 
help  to  the  triumph  of  the  West  over  the  Prussian  tyranny 
that  Russians  sHould  to-day  be  under  the  German  heel.  It  will 
enable  them  to  understand  Poland,  and  to  sympathise  with 
Alsace-Lorraine,  and,  above  all,  it  will  make  them  conscious  of 
their  own  manhood. 

That  we  should,  nevertheless,  in  conjunction  with  America 
especially,  contribute  towards  establishing  a  small  rallying 
point  of  armed  forces  in  Eastern  Siberia  with  a  view  to  helping 
the  Russians  is  not  an  unreasonable  suggestion.  We  hope  it 
may  receive  due  attention  at  Washington,  for  we  can  do  little 
or  nothing  here  at  present.  We  should  even  be  disposed  to 
welcome  Japanese  help  to  the  extent  at  any  rate  of  the  Navy 
of  Japan  guarding  the  Siberian  ports  on  the  Pacific,  and 
perhaps  garrisoning  and  policing  some  of  these  ports  them- 
selves. But  it  would  probably  excite  the  religious  fears,  to  put 
it  mildly,  of  the  Russian  common  people  were  a  contingent  of 
Japanese  troops  to  accompany  the  mixed  Allied  force  suggested. 
Nor  should  that  help  be  necessary.  There  are  men  enough  in 
the  United  States  and  Canada  to  allow  of  a  couple  of  divisions, . 
well  armed,  whose  presence  would  encourage  the  enlightened 
Russian  to  stand  up  for  his  liberties.  Beyond  some  help  in 
Siberia  there  is  no  imperative  demand  for  haste,  we  are  per- 
suaded. The  Germans  themselves,  as  we  said  a  week  ago,  are 
working  for  the  Allies,  stupidly  diligent  in  ensuring  their  own 
defeat  and  ostracism  there  when  the  war  ends,  just  as  surely  in 
Russia  as  in  the  West.  As  we  follow  them  and  note  the  eager- 
ness with  which  they  toil  and  plot  to  make  sure  that  they  shall 
be  masters  of  all  wealth  and  all  souls,  the  feeling  always  arises 
in  the  mind,  "  These  degraded  creatures  are  accursed.  Heaven 
has  decreed  their  destruction." 

Another  aspect  of  that  over-done  shout  in  Tuesday's  Times 
strikes  one  on  second  reading.  It  is  so  exaggerated  in  tone 
and  speaks  with  such  contempt  of  the  Allies  and  assurance  of 
German  triumphs  in  Russia  and  in  Turkey — in  order,  no  doubt, 
to  bring  into  extreme  relief  the  dangers  in  Russia — that  it 
forces  one  to  regard  it  rather  as  a  move  in  the  German  "  peace 
offensive  "  than  as  a  thoroughly  genuine  expression  of  solici- 
tude for  Allied  interests  in  Russia.  The  simple-minded  writer 
would  seem  to  have  been  captured  by  some  astute  Teutonic  mis- 
sionary, and  beguiled  into  inditing  this  perfervid  outburst. 
The  purpose  seems  obvious  ;  if  the  Allies  responded  to  it,  it  would 
serve  most  excellently  to  help  Germany  in  the  West,  where  her 
fate  is  now  being  settled.  It  would  relieve  them  in  the  most 
opportune  manner  were  we  to  weaken  our  forces  now  mustered 
against  them  there  in  order  to  send  men  to  help  Russia.  There 
is,  we  hope,  no  danger  of  any  such  false  step  being  taken, 
nevertheless  we  hope  the  conductors  of  the  Times  will  be 
vigilant  next  time,  because  the  Prussian  "peace  offensive,"  as 
it  is  grotesquely  but  not  inappositely  called,  is  getting  to  be 
in  as  desperate  straits  as  their  murderous  one,  and  will  mani- 
fest itself  with  increasingly  feverish  insistence  in  hundreds  of 
unexpected  ways  from  now  onward  to  the  end. 


OILFIELDS     PRODUCTION, 

Baku  Russian  Petroleui^i. — S°'°S°  poods  for  week  ended 
May  18. 

Kern  River  Oilfields  of  California. — During  May  130,675 
barrels,  or  18,668  tons,  including  76,121  barrels  from  pro- 
perties of   St.   Helens  Petroleum  Co. 

Russian  Petroleum. — Week  ended  April  20,  12,913  poods. 
Two  weeks  ended  April  13,  18,715  poods.  Three  weeks  ended 
April  27,  May  4  and  11,  15,283  poods,  14,526  poods,  and 
17,182  poods  respectively. 

Trinidad   Leaseholds. — During    May,    14,600  tons. 

United  British  Oilfields  of  Trinidad. — 1,429  tons  for  week 
ended  May  29. 


55° 


tTbe  investors'  IReview, 


Jlne  8,  1918. 


By-the-Way  War  Notes. 

"  The   only    thing    that    matters    is   final    success We 

will  never  yield.  That  is  the  word  of  command  of  our  Govern- 
ment. We  will  never  yield  at  any  moment.  The  Germans 
once  more  are  staking  everything  on  a  coii-p  which  is  meant  to 
frighten  us,  so  that  we  may  abandon  the  struggle  For  what 
was  their  great  effort  made  on  the  Yser  in  1914?  In  order  to 
reach  Calais,  to  .separate  us  from  the  British,  and  to  compel 
the  latter  to  renounce  the  struggle."  These  are  the  words  of 
M.  Clemenceau  quoted  from  his  rousing  speech  delivered  in  the 
French  Chamber  on  Tuesday.  This  eminent  man  differs  from 
our  eminent  Prime  Mini.ster  in  that  he  faces  the  worst  himself 
and  bravely  asks  his  countrymen  to  do  it  too.  lioth  are  men 
of  irrepressible  activities  and  great  skill  in  handling  audiences 
— in  political  strategy  also — but  Mr.  George  differs  from  M. 
Clemenceau  in  always  putting  the  best  face  upon  things.  He 
tries  to  cheer  us  up  by  painting  everything  roseate,  or  nearly 
so,  and  while  talking  in  generalities  about  the  "  diflSculties 
of  the  task  we  have  in  hand,"  neutralises  all.  such  warnings 
by  deftly  seizing  passing  incidents  of  an  encouraging  sort  to 
be  flung  at  his  audience  to  cheer  them  up,  just  for  the  moment. 
There  is  nothing  at  all  of  this  .sort  of  camouflage  in  M. 
Clemenceau's  address.  He  tells  his  countrymen  frankly  that 
they  have  to  die  rather  than  yield,  and  that  the  country  has  to 
be  defended  to  the  last,  whatever  conies.  Hut  yet  he  sounded 
one  clear  note  of  confidence :  "  The  victory  is  to  you,"  he 
said,  "  because  the  Germans,  who  are  not  so  intelligent  as  they 
are  told,  have  only  one  method — namely,  to  throw  their  whole 
weight  into  the  venture  and  to  push  it  to  the  end.  We  saw 
them  on  the  Yser,  at  Verdun,  near  Amiens,  near  Dunkirk  and 
Calais,  and  then  in  Champagne.  They  broke  our  lines,  but 
did  you  think  that  you  were  going  to  make  a  war  in  which  you 
would  never  retreat?  The  only  thing  that  matters  is  final 
success."  He  dwelt  ever  upon  the  formidable  nature  of  the 
assault,  and  emphasised,  too  much,  perhaps,  the  fact  that  events 
in  Russia  gave  the  Prussians  "  a  million  additional  men  to 
throw  on  the  Franco-British  front,"  but  none  the  less  took  care 
to  cheer  his  countrymen  with  a  description  of  the  eager  and 
efficient  help  now  being  given  on  the  battle  front  by  the 
Americans. 

Altogether,  it  was  a  memorable  address,  which  one 
could  wish  in  pity  that  the  Germans  had  sense  enough  to 
comprehend  the  significance  of  and  take  to  heart.  But  they 
have  no  sense.  Their  raw,  servile  intellects  have  been  run 
into  one  mould,  and  their  only  god  is  force.  They  have  no 
conception  of  what  the  ordinary  nian  feels  and  thinks,  and  can- 
not in  the  least  understand  why  their  exhibitions  of  brutality 
should  not  long  ere  now  have  brought  the  war  to  an  end  by 
the  abject  submission  of  foes  intimidated.  So,  instead 
of  taking  warning  from  the  array  of  civilised  peoples 
against  them,  or  from  such  words  as  those  of  M. 
Clemenceau,  they  are  only  stimulated  to  wilder  and  ever  more 
abominable  feats  of  brutality  and  gigantic  crimes  by  their 
rage  at  having  failed  to  cow  us.  Therefore  we  have  to  fight 
on  and  on,  and  never  think  of  peace.  There  can  be  no  peace 
between  us  and  them  of  the  old  kind,  with  solemn  covenants 
between  potentates,  for  there  will  be  no  potentates  in  Ger- 
many with  whom  we  would  treat  when  this  war  ends.  All  have 
proclaimed  themselves  base  and  treacherous  liars. 

During  the  past  week  the  enemy  has  not  ceased  his  efforts 
to  break  through,  and  although  he  has  had  no  success  of  a  kind 
to  encourage  nira  to  go  on,  on  he  still  goes,  because  he  must. 
He  creeps  lorward  here  and  there  by  kangaroo  jumps,  like  the 
savage  madman  he  is,  but  the  Franco-British  line  has  never 
been  broken,  and  never  will  be.  Apparently  his  object  now  is 
to  "  drive"  towards  Paris,  and  some  amongst  us  seem  to  have 
already  begun  to  fear  that  he  may  seize  the  city,  their  minds 
being  influenced  by  the  memory  of  the  war  of  1870-1,  but  the 
fear  is  quite  groundless.  Although  all  his  host  was  to  assemble 
before  Paris,  the  Prussian  could  not  besiege  that  city  now,  be- 
cause the  armies  of  the  Allies  are  not  broken  and  scattered 
as  in  1870.  No  mighty  determining  host  is  now  interned,  as 
Bazaine  and  his  splendid  troops  then  were  in  Metz.  There  are 
to-day  organised  forces  on  every  hand,  forces,  thanks  to  Foch's 
husbanding  and  the  steady  inflow  of  the  American  Army, 
rapidly  becoming  stronger  in  reserves  than  the  enemy,  and  the 
utmost  conceivable  that  the  Prussian  brute  could  do  would  be  to 
rush  in  and  hastily  plunder  and  wreck  the  city  he  could  not 
capture.  But  the  way  is  not  open  for  him  even  to  do  that,  and 
we  believe  that  he  is  conscious  that  his  final  discomfiture  is  at 
hand.  The  hearts  in  the  "Fatherland"  are  failing,  as  is 
manifest  by  many  symptoms.  And  some  carrot  is  always  neces- 
sary to  dangle  in  front  of  the  German  don'.;ey.  The  offensive 
which  began  in  March  was  first  stimulated  by  the  romance  of 
a  captured  Amiens  and  the  destruction  of  French  troops,  in 
this  way  to  be  separated  from  the  British.  That  baffled,  the 
next  wild  boar  dash  was  for  Calais,  the  Channel  ports,  sure 
to  be  captured,  the  gun-fodder  louts  were  told.  That  also  failed, 
and  now  the  German  hordes  are  being  told  that  Paris  is  their 
goal,  that  they  are  on  their  way  thither,  and  will  get  there 
without  fail.  And  they  will  be  beaten  again.  They  cannot  get 
to  Paris,  even  if  they  fling  a  million  of  their  human  pawns  into 
the  shambles ;  but  sufficient  progress  is  made  by  the  masses  of 
troops  flung  forward,  now  on  this  point,  now  on  that,  to 
encourage  the  delusion  that  success  is  coming,  coming  at  the 
end  of  the  day,  or  the  week,  or  the  month.  So  the  murder  goes 
on,  and  the  coal  cannot  be  reached,  but  our  misinterpreters  of 
events  too  often  join  in  encouraging  the  foe  by  the  gloom  of 
their  ideas  and  anticipations. 


Why  cannot  people  here  realise  what  is  so  plain,  what  M. 
Clemenceau  emphasised,  that,  under  the  iriasterly  guidance  of 
General  Foch,  the  Franco- British  troops  have  been  fighting  and 
holding  back  the  enormous  masses  of  enemy  troops  with  a 
minimum  of  men?  The  Germans  are  said  to  have  already  used 
up  or  employed  50  divisions  of  their  reset ves.  It  is  doubtful 
whether  General  Foch  has  called  up  10  divisions  of  his  reserves. 
Everywhere  the  enemy  has  been  stayed  by  inferior  numbers, 
in  spite  of  the  employment  of  every  device  for  slaughtering 
the  most  diabolical  cunning  is  able  to  evolve.  That  is  one 
abiding  reason  why  we  never  despair  of  the  final  result,  even 
when  the  prospect  looks  darkest.  Can  we  not  realise  what  the 
heroism  of  the  troops  is  ?  How  the  men  deliberately  elect  in  every 
crisis  of  the  fighting  to  hold  the  post  confided  to  them  or  perish? 
Read  that  story  told  by  Mr.  H.  G.  Perris,  the  special  corre- 
spondent of  the  Daily  Chronicle  with  the  French  Armies,  of  the 
French  infantry  regiment  in  the  central  part  on  the  Chemin  de.s 
Dames,  or  M.  Clemenceau's  story  of  "  those  Britons  who  were 
surrounded  in  a  wood  all  night,  and  who  next  day  found  means 
of  .sending  by  carrier  pigeon  a  message  to  say,  "  You  may  come 
and  find  us.  We  .shall  hold  out  for  half  a  day  yet."  These  men, 
he  added,  make  la  fatrie  the  Motherland.  Submerged  by  a 
storm  of  fire  and  poison  gas  and  by  wave  after  wave  of  men, 
who  now  advance  in  true  cowardly  style  under  cover  of  .smoke 
clouds,  the  battalion  mentioned  by  Mr.  Perris  went  down  in  a 
single  morning,  fighting  a  hopeless  fight  to  the  bitter  end.  A 
small  number  lived  to  cross  the  Aisne  in  the  afternoon,  and  these 
had  to  continue  the  struggle  for  four  days  and  nights  prac- 
tically without  .respite.  Few  are  those  even  in  this  war  who 
have  survived  such  agony.  But  the  men  fight  on,  the  heroes 
that  they  are,  and  they  win. 

We  are  not  dealing  with  beings  <n  any  civilised  sense  human 
or  even  sensible,  and  it  is  a  mistake  to  continue  to  accord  to 
them  the  consideration  we  should  do  to  a  race  of  nobler  quality, 
to  the  Sjjaniard  or  even  to  the  Mexican.  As  a  nation  and  race 
the  Germans  under  Prussian  tutelage  have  become  mere  trained 
savages,  intensely  ignorant  in  a  sense,  superhumanly  vain,  and 
.so  abject  of  spirit  that  their  masters  and  leaders  can  force  even 
the  most  reluctant  amongst  them  to  perform  the  most 
inconceivably  vile  actions  of  inhumanity,  and  rejoice 
over  success  in  crime.  Therefore,  no  machine  of  their 
invention  should  be  neglected,  and  from  earth,  air  and  sea  every 
instrument  of  destruction  should  be  poured  down  upon  them 
until  they  have  had  enough  and  desist  from  sheer  exhaustion  as 
they,  in  the  end,  must. 

In  spite  of  what  -M.  Clemenceau  said,  we  do  not  think  the 
agony  will  last  so  very  long  now.  It  may  be  true  that  a  million 
German  fighting  pawns,  released  from  Russia,  have  come  West 
to  try  and  conquer  us— to  share  in  the  destruction  of  their  race, 
but  Russia  is  not  conquered,  and  cannot  be  left  unheld  down. 
The  drain  of  German  men  goes  on  there,  and  on  every  other 
part  of  the  Eastern  front,  and  is  helping  to  cripple  the  brutes 
in  the  West  so  that  their  offensive  now  begins  to  assume  the 
aspect  of  the  bluff  of  the  despairing.  Austria  is  falling  to 
pieces,  and  the  long  tyrannised  over  races  within  the  borders 
of  the  Habsburg  Emp  re  are  more  and  more  asserting  themselves 
so  that  the  power  of  Captain  Karl  and  his  Teutons  to  resume 
an  effective  offensive  against  Italy  is  vanishing,  if  it  has  not 
already  vanished. 

The  best  proof  of  all  that  the  Hohenzollern  gang  of  would-bt 
world  masters  feel  their  chances  slipping  from  them  is  found, 
perhaps,  in  the  extravagant  inventions  they  fall  upon  in  obedi- 
ence to  their  insane  idea  that  the  AUies  can  be  intimidated. 
Hence  those  persistent  air  raids  on  Paris  and  the  stupid  bom- 
bardments of  the  city  by  that  monster  gun,  over  which  the 
sinister  "  Ka  ser  "  gloated.  Hence  the  sudden  appearance  of 
large  German  submarines  on  the  American  coast.  And  hence 
the  persistence  in  bombarJing  our  hospitals.  The  idea  is 
fanatically  clung  to  that  at  a  point  the  .Mlies  will  suddenly 
collapse  and  sue  for  peace.  No  such  effect  can  be  produced  by 
insane  brutalities  of  that  kind,  by  any  revelation  of  the  utter- 
ness  of  German  abandon.  They  but  stiffen  the  spirit  of  re- 
sistance, and  in  that  sense  are  a  gain  to  us,  because  in  the  face 
of  such  abominations  even  the  intrigues  of  the  pacifists  amongst 
us  are  paralysed.  Nay,  even  our  professional  diplomats  of  the 
old  school  are  silenced,  and  when  the  time  comes  these  fossils 
may  not  be  asked  to  take  a  share  in  arranging  the  peace.  Can 
peace,  indeed,  be  "  arranged  "  on  the  old  diplomatic  1  nes  with 
any   German  of   the   whole  band?     We   hope  not. 

Friday  Morning. — The  Americans  did  not  require  the  ap- 
pearance of  cruiser  German  submarines  on  their  coasts  to  stimu- 
late then-,  for  zeal  in  war.  As  Mr.  Lansing  told  his  country- 
men, in  a  speech,  "  Prussia  wickedly  sought  war  and  Prussia 
shall  have  war,  more  war,  and  more  war,  until  the  very 
thought  of  war  is  abhorrent  to  the  Prussian  mind."  As  an 
example  of  Prussian  stupidity,  however,  the  deeds  of  th^se 
submarines — two  of  them  it  is  said — are  opportune  and  give 
much  encouragement.  Recruiting  has  been  stimulated  by  the 
news  that  20.000  tons  have  been  sunk,  among  the  ships  lost 
being  the  New  York  and  Poito  Rico  Co.'s  liner.  Carolina,  a 
vessel  of  over  5,000  tons.  Thus  the  Prussians  are  busy  writing 
in  crime  their  own  condemnation  and  are  stimulating  the 
Allies  to  strive  to  the  utmost,  and  to  the  last  man,  to  rd  the 
world  of  a  hideous  nightmare. 


Mr.  Walter  L.  Martin,  J.P.,  who  has  recently  retired  from  Ae 
position  of  assistant  manager  of  the  Prudential  Assurance  Co., 
has  been  adopted  as  I-iberal  candidate  for  the  new  Parlia- 
mentary Division  of  Finchley. 


June  8,    1918. 


^be  Jnvestors'  TReview. 


55» 


American  Business  Notes. 

Assurances  have  been  sent  out  fioin  Washington  calculated  to 
allay  apprehension  here  regarding  the  restrictions  on  exports 
to  the  United  States.  These  have  been  framed  on  very  proper 
lines.  Luxuries  are  forbidden,  but  the  barrier  is  chiefly 
directed  against  bread  stuffs  and  lentils,  beans,  diied  peas,  and 
so  forth,  things  that  America  sends  here.  The  principle  under- 
lying the  regulation  of  the  import  trade  of  America  is  that, 
barring  the  specially  forbidden  commodities,  all  goods  will  be 
fallowed  to  enter  when  coming  as  a  return  cargo  from  European 
ports,  or  from  a  convenient  port,  or  when  loaded  without 
delay.  Thus,  although  glass,  furs,  cold  tar  distillates,  manufac- 
tures of  cotton,  wool,  vegetable  fibres,  and  textile  grasses,  except 
jutr,  together  with  fruits,  except  pineapples  and  bananas, 
matches,  fresh  nieate,  nickel,  oil  cake,  oilcloth  and 
linoleum,  artificial  silk  and  manufactures  thereof,  soap,  toys, 
&c.,  are  on  the  shut-out  list,  they  may  all  be  imported  if  an 
empty  ship  is  available,  and  can  be  loaded  without  delay.  Re- 
turn cargoes,  in  fact,  are  encouraged,  but  the  following  com- 
modities are  not  allowed  to  enter  any  port  of  the  United  States 
from  Great  Britain  or  ports  in  Europe  : — Breadstuffs,  gelatine 
and  manufactures  thereof,  expressed  vegetable  oils,  malt  liquors 
and  other  beverages  (not  including  wine),  candy,  confectionery, 
beans,  lentils,  dried  peas  and  other  European  vegetables,  lime, 
talc,  soapstone,  shell  fish,  molybdenum,  tobacco  leaf,  fish,  animal 
oils,  aloxite  and  boro-carbone  borax,  building  cement,  chloride 
of  lime,  cyanide  of  soda,  dairy  products,  ferro-manganese  and 
spiegeleisen,  lead,  magnesite,  meat  products,  preserved  meats, 
paraffin,  pumice,  starch,  stone,  and  manufactures  of  stone. 

The  Shipping  Board  announces  that  the  tonna;3;e  completed  in 
May,  comprising  43  steel  ships  and  one  wooden  vessel,  totalled 
263,551  tons.  This  is  the  largest  American  shipbuilding  output 
in  history.  The  number  of  ships  delivered  in  America  since 
September  is  170  vessels  of  1,112,897  tons,  the  output  during 
the  last  nine  months  being  nearly  three  times  greater  than  the 
best  previous  year — nainely.  irioi,  when  402,136  tons  of  shipping 
were  completed.  In  the  last  si.x  days  of  Jlay,  the  "record" 
week  oi  the  Board's  efforts,  15  vessels,  totalling  82,760  tons, 
were  delivered. 

Sir  William  White,  the  Canadian  Finance  Minister,  is,  the 
Times  Ottawa  correspondent  says,  already  making  preparations 
for  the  next  Canadian  War  Ixjait  to  be  issued  in  October  or 
November.     It  is  likely  to  be  ;^300, 000,000. 

Canadian  foreign  trade  was  larger  last  year  ended  March  31 
thaii^in  any  other  year  in  the  Dominion's  history.  Its  aggregate 
was  ;^5oo, 5 10,000,  whereas  in  the  year  ended  March  31,  1913, 
the  total  was  only  ^210,000,000.  There  is  thus  an  increase  of 
;^2go,5oo,ooo.  Between  1914  and  1918  exports  of  products  of  the 
mine  rose  from  ;f  11,808,000  to  ,,f  14,752,000.  Products  of  fisheries 
exported  rose  from  ^^4, 125,000  to  ;^6, 520,000,  and  animals  and 
their  produce  jumped  from  ^f  10,668,000  to  ^-54.549,000,  but  the 
most  cheering  increase  of  all  was  in  agricultural  products,  which 
were  exported  to  the  value  of  ;f 39, 644, 000  in  191 3- 14  to 
;f  113,543,000  in  the  last  fiscal  year.  This  was  a  fine  aggregate, 
but  the  actual  expansion  was  greatest  in  manufactured  articles, 
the  export  of  which  rose  from  ,Jf  11,489,000  to  ;^i27,32o,ooo  within 
the  same  four  years.  The  particulars  of  imports  are  not  yet 
given,  but  the  Customs  revenue  last  year  amounted  to 
;^32.3i8,ooo,  whereas  four  years  before  it  was  only  ;if2i,436.ooo, 
so  that  imports  must  have  been  good,  for  the  revenue  yielded 
by   them  has   risen  ^10,882,000. 

Canada  is  taking  vigorous  measures  to  stop  extravagance,  and 
the  Governnnent  has  passed  an  order  prohibiting  the  import 
of  many  luxuries,  with  the  object  of  righting  the  exchange  and 
reducing  the  balance  of  trade  against  Canada  with  the  United 
States.  High-priced  automobiles  are  included  in  the  list,  as 
well  as  jewellery  and  many  fruits  which  can  be  raised  in 
Canada,  as  well  as  in  the  United  States,  and  the  Minister  of 
Trade  and  Commerce,  Sir  George  Foster,  in  speaking  to  the 
laymen  of  the  Methodist  Conference,  declared  it  to  be  "  a  crime 
to  spend  a  cent  on  anything  we  can  do  without.  We  should 
wear  clothes  for  three  years  which  formerly  we  might  cast 
aside  in  one  year.  Get  them  mended  or  darned  if  necessary. 
The  gospel  of  thrift  must  sink  into  the  Canadian  people."  It 
is  all  very  true,  and  as  wise  as  true. 


insurance    News. 

Yet  another  office  is  to  be  absorbed  by  tliat  enterprising  under- 
taking, the  Eagle,  Star  and  British  Insurance  Co.,  which  has 
just  concluded  a  provisional  agreement  with  the  British  Crown 
Assurance  Corporation.  Under  the  agreement  the  purchasers 
will  acquire  the  whole  assets  of  the  British  Crown  Co.,  share- 
holders receiving  for  every  three  .shares  held  one  ordinary  share 
of  £^  fully  paid  in  the  Eagle,  Star  and  British  Dominions. 
Taking  the  market  value  of  Eagle  shares  at  £g,  British  Crown 
shareholders  will  increase  the  market  value  of  their  holding  by 
9s.  6d.  for  each  share  now  held  by  the  exchange,  at  the  same 
time  being  relieved  of  the  liability.  For  1917  British  Crown 
shareholders  received  a  dividend  of  5  per  cent.,  less  tax  (the 
first  since  1910),  while  the  Eagle  dividend  was  12'^  per  cent., 
tax  free,  consequently  the  terms  offered  appear  to  be  very  attrac- 
tive. The  small  company  obtains  the  security  of  a  powerful 
undertaking  with  an  annual  premium  income  exceeding  3%  mil- 
lions, and  with  assets  substantially  over  13  millions.  On  the 
other  hand,  the  purchasing  company  secures  a  strong  repre- 
sentative board,  which  will  form  the  Glasgow  board  of  the  amal- 
gamated company,  and  a  large  extension  of  its  existing  connec- 
tions in  Scotland  as  an  important  adjunct  to  its  own  business. 
The  British  Crown  was  formed  in  Glasgow  in  1907,  and  does  a 
fire,  personal  accident,  burglary  and  miscellaneous  business;  for 
1917  its  nett  premiums  were  over  ,,f  100,000. 

During  1917  the  Colonial  Mutual  Life  Assurance  Society  of 
Australia  earned  a  surplus  in  the  ordinary  branch  of  ;^i  25,282, 
against  ^^136,031  in  the  previous  year,  and  the  bonus  declared 
on  a  sliding  scale  ranged  from  35s.  to  17s.  6d.  per  cent.,  and 
15s.  per  cent,  on  pure  endowments.  The  total  funds  increased 
by  ^256,040  to  ^^4,626,000,  the  total  income  being  about  £,S7'°°° 
in  excess  of  the  income  for  1916  at  ^^850,000.  In  the  accident 
department  a  bonus  of  2  per  cent,  has  again  been  declared,  so 
that  policyholders  in  this  section  of  more  than  four  years'  dura- 
tion have  now  had  8  per  cent,  in  all  added  to  the  benefits  pay- 
able to  them  under  their  policies. 

An  increase  of  ^101,291  to  ;^564,674  is  shown  in  the  premium 
income  of  the  Iron  Trades  Employers'  Insurance  Association  for 
1917,  and  including  ^24,703  from  dividends  and  interest  the 
total  income  was  /£'589,377— an  increase  of  ^^105, 810.  The 
amount  disbursed  as  compensation  and  in  incidental  expenses  at 
;^382,26i  showed  an  increase  of  ;^i  14,493,  the  balance  available 
on  revenue  account  being  ,^10,469  larger  at  ;^204,287.  Reserve 
is  credited  with  ^^50,000,  or  ^f  10,000  less  than  in  1916,  and  from 
an  available  balance  of  ;^i5o,i64  it  is  proposed  to  take  a  suflB- 
cient  sum  for  the  distribution  of  a  bonus  at  the  rate  of  20  per 
cent,  (against  15  per  cent,  in  the  previous  year)  among  the  mem- 
bers of  the  association.  In  1916  the  sum  of  ^^38,000  was  set 
aside  for  depreciation  of  investments  and  reserve  fund ;  the 
total  reserves  stand  at  ^866,000. 


A  little  book  has  been  published  by  the  Syren  and  Shipping, 
Ltd.,  entitled  "  Decimal  Money  Tables,"  and  containing  conver- 
sion tables  for  the  reduction  of  English  money  from  and  into 
any  foreign  money.  It  is  by  A.  M.  Pooley,  B.A.,  of  Clare 
College,  Cambridge,  and  is  sold  at  2s.  6d.  nett.  The  publica- 
tion is  opportune,  and  the  tables  will  be  very  useful  to  all  who 
have  dealings  with  foreign  moneys.  The  author  claims  that  his 
decimal  exchange  tables  are  unique  in  their  simplicity,  and  that 
theii^use  effects  an  enormous  saving  of  time  and  labour  in  office 
work.  We  do  not  gather  that  the  basis  on  which  he  has  worked 
out  the  tables  is  the  same  as  that  of  Mr.  Robertson,  but  his 
method  is  simply  and  easily  mastered  and  followed,  as  the 
example  given  shows,  and  the  contents  embrace  tables  of  sterling 
into  foreign  moneys  at  the  dollar,  franc,  &c.,  per  £;  sterling 
into  foreign  moneys  at  pence  per  unit,  and  a  series  of  tables  of 
sterling  into  foreign  moneys  quoted  in  pence  ner  unit,  eighths, 
sixteenths,  and  thirty-seconds  of  a  penny.  These  tables  begin 
at  a  penny  and  rise  by  penny  steps  to  6od.  Then  follows  a 
ready  reckoner  in  pence  and  tables  to  convert  dollars,  yen, 
milreis,  and  all  other  foreign  moneys  quoted  at  pence  per  dollar 
into  sterling.  Tables  for  calculating  any  foreign  money  into 
sterling  follow  and  render  the  book  pretty  well  complete.  It 
must  have  involved  an  enormous  amount  of  hard  work. 


TD. 


STANDARD  BANK  OF  SOUTH  AFRICA,  L 

Bankers  lo  the  Government  of  ihe  Union  of  South  Africa  in  Cape  Province ;   I    the  Imperial  Government  in  South  Africa  and  to  the  Aflministration 

of  Rhod-^si^.  -k-^ 

Subscribed  Capital    ...    £6,194,100     |     Reserve  Fund     £2,000,000 

Paid-up  Capital £1,548,525     |     Uncalled  Capital         ...    £4,615,575 


WM.  REIERSON  ARBUTHNOT,  Fcq. 

SIR  DAVID  M.  BARBOUR,  K.C.S.I.,  K.C.M.G. 

ROBERT  E.  DICKINSON,  Esq. 


Board     of     Directors. 

JAME>  FAIKBAIRN  FINLAY,  Esq.,  C.S.I. 
HOI^ACE  PHEL.  Esq. 
WILLIAM  SMART,  Esq. 


Rt.  Hon.  LORD  SYDENHAM,  G.C.fa.l., 

G.C.M.G.,  G.C.I  E.,G  B.E. 
H.  L.  M.  TRITTON,  Esq. 


Head  Offices   lO  CLEMENTS  LANE,  LOMBARD  STREET,  LONDON,  E.C.  4, 

New  York  Af^ency:— 68,  WALL  STREET,    Over  250  Branches  and  Agencies  in  South  and  East  Afrloa< 


BANKING  BUSINESS  OF    EVERY  DESCRIPTION  transacted  at 

all  Br   ncties  and  Agencies. 
CURRENT  ACCOUNTS  opened  on  the  usual  terms,  and  DEPOSITS 

RECEIVED  for  fixed  periods  at  rates  which  may  be  ascertained  on 

appii'-ation. 
SAVINGS  BANK  ACCOUNTS  opened  on  terms,  particulars  of  which 

may  be  nbtaine-i  at  Branches. 
BILLS  NEGOTIATED  and  COLLECTED. 

DRAFTS  issued,  MAIL  and  TELEGKAP-lIC  REMITTANCES  ma'e. 
LETTERS  OF  CREDIT  aixi  COMMERCIAL  CREDITS  established. 


The  officers  of  the  Bank  arc  bound  not  to  disclose  the  transactions  of  any  of  its  customers- 


TRAVELLER'S  LETTERS  OF  CREDIT  issued  available  in  all  parts 

of  the  world. 
PURCHASE  AND  SALE  of  Socks  and  ^^hares  effected. 
DIVIDENDS,    ANNUITIES.    Ac,    received  and   COUPONS  COL- 

STi^ONG  ROOMS  provided  for  the  safe  custody  of  Securities  and 
Valuables  of  (  ustom- rs.  , 

ASSAY  DEPARTMENT- Gold,  etc.,  and  all  Mineral  Ores  assayed 
aiiri  realised. 

EXFCUTOR  AND  TRUSTEE  Business  undertaken. 


FRANCIS  SHIPTON,  Lonlon  Mdnager. 


552 


TLbc  Jnvestore'  IReview. 


June  8,  1918. 


'NORWICH  union' 

LIFE  INSURANCE  SOCIETY. 

Coiiibinaliou   of 
AGE,    MAGNITUDE,    RESERVE    BASIS. 
AND      PROFIT  -  EARNING      CAPACITY. 

THE  STRONGEST  IN  THE  WORLD. 

Perusal  of  recently   published  War  Time  Prospectus 
makes  that  fact  very  clear. 

Write  or  telephone  to  HEAD  OFFICE,  NORWICH,  or 
to  any   Branch  or  Agency. 


THE  LIVERPOOL   &  LONDON  &  GLOBE 


INSURANCE    CO..    LTD. 


FIRE,        LIFE.        ACCIDENT.        MARINE. 
Total  Assets  exceed    -       .       .    £16,000,000 

-    £89,000,000 


Total  Claims  Paid  over 


Head  Office: 
1,  Dale  Street,   Liverpool. 


I 


London  Chief  Office: 
1,  Gornhill,   B.C.  3. 


XLbc  .^iipestors'  IRepiew. 

Money    and    Credit    Notes. 


Bank  Rate  5  per  Cent.    (Reduced  from  5I  percent,  on 
Thursday,  April  5,  1917.) 


Norfolk  House,  Friday  Evening. 
With  the  disbursement  of  the  dividend  money  at  the  end  of 
last  week  supplies  of  credit  in  the  open  market  became  super- 
abundant. They  have  remained  so  throughout  this  week,  for 
although  the  recipients  may  reinvest  their  dividend  money  it 
Jakes  more  than  a  week  to  get  it  sucked  back  aga:n  by  the 
Treasury.  Consequently,  call  loans  have  more  often  than  not 
been  2  per  cent,  and  never  more  than  3.  Discount  rates,  how- 
ever, remain  as  before,  and  the  rate  for  seven-day  loans  is 
3  per   cent. 

Changes  in  the  Bank  return  tell  us  nothing,  but  the  reduction 
in  public  deposits  of  ^2,392,000  and  of  ;f  3,365,000  in  the  other 
deposits  has  increased  the  proportion  of  reserve  to  liabilities 
by  ^  per  cent,  to  lyji  per  cent.  Government  securit  es  have 
decreased  ;,f334,ooo,  and  other  securities  ^4,028,000.  The 
note  circulation  has  expanded  ;^8o4,ooo,  but  coin  and  bullion 
has  increased  by  ;i'343,ooo,  hence  the  decrease  of  only  £46o,7::o 
in  the  reserve.  '^ 

Further  meetings  have  taken  place  this  week  with  the  object 
of  bringing  the  discount  houses  and  overseas  banks  into  line 
with  the  clearing  banks  in  their  decision  to  limit  deposit  notes 
in  order  to  stimulate  the  demand  for  National  War  Bonds.  The 
discount  houses,  as  the  result  of  a  conference  at  the  Bank  of 
England,  decided  to  reduce  the  rate  of  interest  on  deposits 
at  notice  from  3%  to  3  per  cent.,  the  rate  allowed  by  the  banks, 
but  the  deposits  of  bankers  and  merchant  bankers,  which 
really  are  re-deposits  of  other  neople's  money,  will  continue  to 
carry  3%  per  cent.  The  British  Overseas  Hanks'  Association 
has  also  decided  to  recommend  its  member  banks  to  reduce, 
at  the  request  of  the  Bank  of  England,  its  deposit  .rate  to  3  per 
cent.,  except  as  regards  deposits  which  are  renewed  for  not 
less  than  one  year.  A  good  deal  of  resentment  exists  among 
the  overseas  banks  at  not  being  invited  to  participate  in  the 
discussions  which  took  place  between  the  Treasury  and  the 
clearing  banks  prior  to  the  decision  to  restrict  deposit  rates 
to  3  per  cent.,  but  afterwards  being  asked  to  adhere  to  that 
decision.  They  quite  rightly  claim  that  they  should  have  been 
consulted  before  the  decision,  which  affects  their  interests 
perhaps  more  closely  than  the  clearing  banks,  was  taken,  and 
not  after. 

Pending  the  introduction  of  legislation  to  give  effect  to  the 
recommendations  of  the  Bank  Amalgamations  Committee,  Lord 
Inchcape  and  Lord  Colwyn  have  been  appointed  members  of 
an  advisory  committee  to  advise  the  Government  in  respect  of 
fresh  schemes  of  amalgamation.  Both  of  them  are  at  present 
on  the  boards  of  important  banks,  a  fact  which  ensures  a 
sympathetic  consideration  for  the  legitimate  claims  of  banking. 
It  IS  understood  that  an  important  development  of  the  activities 
■of  the  big  banks  in  extending  the  scope  of  their  operations  may 
shortly  be  completed  which  will  strengthen  the  connections 
existing   between   British  and   Empire   banks. 

Underwriting  arrangements  have  been  made  this  week  for 
an  issue  of  ;^2,ooo,ooo  5  per  cent,  three-year  notes  of  the 
Canadian    Northern    Railway.      The    issui   is    being    made    to 


replace  a  similar  amount  of  notes  which  mature  on  August  12, 
and  which  a  month  ago  were  changing  hands  on  a  10  per  cent, 
basis,  owing  apparently  to  a  fear  that  the  notes  would  not  be 
met  on  maturity.  How  such  an  impre-ssion  came  to  be  made 
it  is  difficult  to  understand,  in  view  of  the  fact  that  the  rail- 
way is  now  the  property  of  the  Government.  The  new  notes, 
v/hich  will  be  issued  at  98J4,  are  guaranteed  as  to  principal  and 
interest  by   the   Canadian  CK>vernment. 

Most  of  the  European  neutral  exchanges  have  moved  against 
us  this  week.  Amsterdam  is  iS'/i  points  lower  at  0-37K  A-  to 
the  pound,  and  .Stockholm  at  13.85H  k;r.,  Christiania  at 
15.005^  kr.,  and  Copenhagen  at  15.1^%  kr.  are  also  all 
appreciably  lower,  and  therefore  more  expensive  to  buy. 
Sterling  has  been  offered  from  Switzerland,  and  the  pound 
sterling  will  now  purchase  only  18.75%  francs,  or  3i)}4  centimes 
less  than  last  week.  The  Argentine  dollar  has  declined  H  to 
5i.^d.,  and  the  Uruguayt'n  dollar  has  also  become  cheaper  at 
(>3%d.  on  the  news  that  the  Government  intends  to  purcha.ie 
the  Central  Uruguay  system,  which  will,  of  cour.se,  help  to  ease 
the  exchange  situation.  The  Chilean  peso  has  risen  further  to 
•7iVd.,  which  is  nearly  double  the  rate  current  before  the  war. 
There  is  an  impression  that  something  ought  to  be  done  to 
raise  a  credit  in  Chile  for  the  purpose  of  cheapening  the  cost 
of  Chilean  produce  by  reducing  the  price  which  has  to  be  paid 
for   her    currency. 

Silver. 
There  is  nothing  at  all  to  say  about  silver,  which  remains  at 
48%d.  per  oz.     Montagu's  circular  gives  the  stock  of  gold  coin 
and  bullion  in  India  at  1,911  lacs.     On  May  31,  the  week  before, 
it    was   1,945    lacs. 


BANK 


OF    ENGLAND 

A.N  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap. 

Week  ending  on  Wednesday,  June  5,  1918. 

ISSUE    DEPARTMENT. 

i         I 
81,660,405     Governtnent  Debt .. 

Otber  Securities    .. 

Gold  Coin  and  Bullica    .. 

Silver  Bullion 


Notes  Issued 


481,660,405 


.12,  for  the 


£ 
11,015,100 
7,434.90c 
63,210,403 

£81,663,405 


BANKING    DEPARTMENT. 

£  ! 

Proprietors' Capital        ..      14.553.000 

Real 3.217.787 

Public  DeposltE(inoludlng 

Exchequer,     Savings 

Banks, Commissioners 

of  National  Debt,  and 

Dividend  Aooounts)  ..  33,663,800 
Otber  Deposits  ..  ..  131,905,032 
Seven  Day  and  otber  BIlit  11.S98 


Dated  June  6,  1918. 


£188,351,217 


Governnient  Securities  ..  56, 

Other  Securities    ..        ..  loi 

Notes 29, 

Gold  and  Sliver  Colo      .. 


£ 
,403.732 
558,003 
.805,385 
584.097 


fl88,35i,2l7 
E.  M.  HARVEY,  Chief  Cashier. 


BANKING     DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
June  6. 

May  29, 
19 1 8. 

June  3, 
igiS. 

Inorease. 

Deereaae. 

£ 

3,182,288 
47.998.697 
■20,797,97a 

36,299 

45,247.40s 
106,749,030 
34535,176 

Liabllitiea. 
Rest 

Pub.  Deposit! .. 
Other    do. 
7  Day  Bills 
Assets. 
Gov.  Seouriiles. 
Other        do. 
Total  Reserve.. 

NoteClroulatloo 
Coin  and  Bullion 
Proportion    •     . . 
Bank  Rate 

3,186,394 

41,055,712 

I35,2l69.96l 

8.903 

36,737.732 
105,486.004 
30,850,234 

£ 

51,031,240 
63.451,474 

175  PC. 
5      .. 

3.217,787 

38,663,800 

131,903,032 

11,598 

56,403,732 
101,558,003 
30,389,482 

51,855,020 
63,794.502 
178  p.c. 
5 

£ 
31.393 

~2,695 

Decrease. 

334,000 

4,928,001 

460.752 

5,95«,84i 

Inereaae, 

8uj,78o 
343.028 
.3  p.c. 

J 

2,39«.9'2 

3.364.929 

Increase. 

5  656,841 

£ 

38,965,745 

55,037.565 

205  p.c. 

5      „ 

Deoreai*. 

LONDON 

BANKERS' 

CLEARING. 

Date. 

Increase. 

Decrease. 

1918. 

1917. 

{ 

£ 

January 
February 

2,073.224,000 

1,865,125,000 

208,099,000 

— 

1,605,654,000 

1,779.  "4.000 

— 

x73fB7o,ooo 

March 

1,784,836,000 

1,492,825,000 

292,011,000 

— 

April 

1,446,306,000 

1,403,902,000 

42,404,000 

— 

May           I 

378,749,000 

364,965,000 

13,784,000 

— 

8 

384.904,000 

406,840,0:0 

— 

a  1, 936,000 

■  >           '5 

392,971,000 

338,984,000 

53,987,000 

— 

,,           22 

293.5e9.oco 

332.276,0=0 

— 

36  677,000 

29 

387.538,000 

336  301,000 

51,227,000 

— 

June          5 

393,902,000 

396,033,000 

— 

3,131,000 

Total 

9,141,623,000 

7.716,745.000 

661,512,000 

236,614.000 

CURRENCY  NOTES. 


Return  of  Cnnenoy  Notes  for  the  week  ended  June 

5,  I9>S. 

Issued. 

Cancelled. 

Outatandinc. 

£t  notes         

los.  notes        

Note  certificates 
Previous  total 

3,8i9,<c£ 
1,204.406 

12O.O0O 

924.906  735 

£ 

3,259.034 

1.319,982 

,     350.000 

677.115.627 

179.398.777 
39.746.279 
28,860,000 

930,049,700             682,044,644      '       248,005,056 

Ratio  of  gold  held  against  notes,  this  week,  13.00  p.c. ;  last  week,  13.03  p.c 


June  8,   19 18. 


XThe  Jnvestors'  TReview* 


553 


PUBLIC   INCOME  AND   EXPENDITURE. 

(For  7  days  ended  June  1.) 


Expenditure. 


Customs  ' 

Excise 

Estate,  &c.,  Duties  .. 

Stamps 

Land  Tax  and  House  Duty 
Property  and  Income  Tax 
Excess  Profits  Tax  .. 

Land  Values 

Post  Office 

Crown  Lands 

Sundry  L.oans 

M  tscellaneous 

Bullion  adv.4nces  repaid  .. 
ForTreasury  Bills  for  Supply 
3%  Exchequer-  Bonds,  1930 
5%  Exchequer  Bonds,  1922. . 
6%  Exchequer  Bonds,  1920. . 
Nation  d  War  Bonds  * 

War  Savings  Certificates 


C 
1,722,000 

5^3-000 
539.000 
230,000 

2,059,000 

3,551,000 

10,000 

600,000 


'.643,982 

120,000 

92,233,000 


15.754.000 
5co,ooo 


4%  War  Loan,  1929-1942  ) 
5%  War  Loan,  1929-1947  f  ' ' 
Other  Dtbts  created  under 

War  Loan  Act,  1915,  and 

Finince  Act,  1916..        ..  14^900,315 
Telegraph  Money  Act,  1913        — 
Under  Post  Office  Rly.  Act, 

1913 — 

Under  Military  Works  Act, 

1897-1903       — 

Under  Public  Buildings    ..  — 

Under  Housing  Act..        ..  — 

Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds            ..        ..     ...  — 

China  Indemnity      . .        . .  — 

East  Africa  Loan  repay- 
ments   — 

Suez  Canal  Drawn  Shares. .  — 

Ways  and  Means  Advances  21,000.000 

Decrease      in      Exchequer 

balances       5,109,291 


£160,554.588 


£ 

,900,717 


19-336 
,616,300 

5co,oco 


National  Debt  Service 
Inten^st,  &c.,  on  War  Debt  37 
Development  &  Road  Impvt 
Payments  to  Local  Taxation 
Other    Consolidated    Fund 

Charges        

Supply  Services       ..         ..42, 
Bullion  Advances     . . 
For    Advance   for    Interest 
on  Exchequer  Bonds  un- 
der   Capital  Expenditure 
(Money)  Act,  1004  . .        . .        — 
For  Treasury  Bills   ..       ,.   79,136,000 
Other  Debt  under  War  Loan 

Acts,  I9id-i6  . .        . .        — 

For    War     Loan  and     I'x- 
chequer      Bonds      under 
Section  61  of  Finance  Act, 
1916,  and  Section  34,  1917        67,235 
Under   Telegraph    (Money) 

Act,  1913 15,000 

Under    Post    Office     (Lon- 
don) Railway  Act,  1913  ..         — 
Under  Military  Works  Acts        — 
Under  Housing  Act,  1914. .        — 
Public    Buildings  Expendi- 
ture Act,  1903         ..         ..         — 
Old  Sinking  Fund,  1907-8..        — 
Sinking  Fund,  1910-11        ..        — 
China  indemnity      .,         ..        — 
East  African  Loan ..           ..        — 
Cunard  Agreement  Act     ..        — 
Expenditure  Certificates   ..        — 
Depreciation  Fund  ..         ..      5co,ooo 
Suez  Canal  Drawn  Shares. .        — 
Temp      Advances     Repaid        — 
Increase      in       Exchequer 
balances        — 


)f  160,554,588 


"^Excluding  sales  through  banks  which  have  not  yet  been  brotight  to  account 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  48.). 


May  3,  1918. 

Apr.  26,  1918. 

May  4,  1917. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

96,566,400 
B7,554,2oo 
lo.soo.ooo 

£ 
97,364,000 

87.895.400 
10,500.000 

67,223,600 
43,782,000 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

ig4,6ic,too 

172,439,200 

4,90^.200 

195,759,400 

l64,8.,3,6oo 

4,707,000 

111,005,660 

86,617,800 

533,800 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &o. 

371,955,000 
12.008,600 

365,400,000 
12,789,000 

198,157,200 
7,8b3,ooo 

Total  reserves  . . 
Bills  discounted— Members'. . 
Bills  bought  in  open  market 

303,996,600 

174,688,^00 

59,405,800 

378,18^000 
180,437,600 
60,479,800 

206,040,200 
7,l83,2«) 

'6  774, 20T 

Total  bills  on  hand     .. 
U.S.  Gov.  long-term  sec, 
U.S.  Gov.  short  term  sec.     . 
All  other  earning  assets 

234,094.200 

8,283,000 

9,229,200 

507,40* 

240,9.7,400 

8,289,200 

7,481,400 

544,400 

23.957.400 
7, 144,400 

17,609,400 
<,98i,400 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk — n. 
Uncollected  items 

250,113,800 
*4,6t6,ooo 
79,937,000 

257,232,400 
2,062,800 
75,706  200 

51,792,600 

1,048,600 

36,927,800 

Total  dedctns.  fm  gross  dep. 
5%Red.FundagFed.Res.bknts 
All  other  resources 

75,321,000 
107,400 
65.800 

77,769,010 
105,600 
71,800 

37,976,400 

80,000 

1,052,000 

Total  resources 

70Q,604,6no 

713,167,800 

296,941,200 

Capital  paid  in 

Surplus 

Government  deposits  .. 
Due  to  membrs  -  Res.  account 
Collection  items 
Otherdepsinc  For.Govt  crdts 

l5,<X)ij,ooo 
226,800 
H,777,ioa 
294.903.630 
51,518,600 
18,312,600 

14,992,600 
226,f00 

26,i3!,6oo 

299,483,200 

47,034,800 

1^,378,000 

11,371.800 

21,573,600 
148,628,600 
24,552,200 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn-neltliab. 
All  other  liab,  in  for  Gov  crdts 

379,512,400 

311,332,000 

1,596,000 

1,92  7,6m 

389,0  9,6,.o 

305,246,400 

1,579000 

2,2  3,400 

194.754,400 
85,700,400 

5,114,600 

Total  liabilities 

709.604,600 

711,367,800 

29^,9tl,20O 

Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.R.  nts  io  act  circ 

Patio  of  gold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio    of    total    res.    to    nett 
deposit  and  F.R.    note  lia- 
bikties  comb  aed 

63.7% 
57.0% 

60.4% 

62.4% 

t 

5 

1 

6 

9.3% 

'.3% 

70.8% 
101.7% 

ai.7% 

85.0% 

*  Difference  between  net  amounts  due  from  and  net  amounts  due  to  other 
i  ederal  Reserve  Banks. 

N,EW   YORK  ASSOCIATED    BANKS   AND    TRUST    COMPANIES 

(dollar  at  48.)^ ^_^^^____^__ 


June [,1916    May 25,1918  MayiS,  1916 


•Loans,  Discounts,  etc.  ..t  904,740,oco 

Cash  in  Vaults  of  Members     | 

Fed.  Res.  Bk ;    40,234,000 

Aggregate  Reserves    ..        ..1108,364,030 

Excess  Reserve f      9,424.000 

Nett  Demand  Deposits  ..I  744,810,000 
Nett  Time  DepoMts  .,  ,,  32,256,000 
U.S.  Deposits  Deducted  ..'  71,212,000 
Circulation         I      7,4  2,000 


917,970,000 


106,860,000 
9,084,000 


i 
9x8,980,000 


106,360,000 
9,908,000 


7.324.400        7,307.goo 


June  2, 1917 


743,730,000 


12,050,000 
724.7441000 
37,176,000 

5,836,000 


NETHERLANUS  BANK  (12  Florins  to  the  jE). 


Gold  and  Silver 
Bills  and  Advan-ces 
'Note  ciroulation 
■Deposits..        .. 


Junai,  X91K 


i 

60.671,916 

iS,8o4,<oo 

77.541.333 

4,916,500 


May  25, 1918 


60.769  833 

1 5. 77^416 

76,792,083 

5. 904.9 '6 


May  18,1918. 


£ 
60,583.083 

16.537,415 
78,131,916 
4.938,333 


June  2, 1917 

I 
50,317,666 
13.706,911 
63.326.583 

4.094>583 


BANK   OF  FRANCE    (25  francs  to  the  £), 


Gold  In  hand 
Silver  In  hand 
Bills  discounted 
Advances 
Note  oiroulation 
Public  deposits 
Private  deposits 
Foreign  Billfi.. 


June  6.  nt8 

May  30,  1918. 

£    '~^ 

r33,8i2,6oo 
10,161,640 
44,824,203 

£ 

J33.B65.440 

10,156,600 

55,966  240 

37.»7I.520 

1,120,487,840    , 

2,187,360 

37,177,0'io 

1,093,734.830 

1,842,560 

154.435.040 
346 .6S0 

133.593.320 
145.6S0 

May  23,  1918. 
£ 

133.785  "O 

10,219,480 

43,152,683 

37,507,000 

1,083,925,520 

2,619,88a 

-6.485,720 

334.520 


June  7,  tji7 

£ 
129.790.440 
10  309,680 

■9.746.«40 

45.270,240 

787,ig5,88o 

3,017,640 

105,628,000 

78,240 


Proportion  between  bullion  nnd  circulation  20.21  per  cent.,  against  20.64  per 
cent,  fast  week.  Advances  to  the  State  jf700.ooo,ooo  increase  ^28, 000,000.  The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium.  £18,984,840 
decrease  ^59,240,  and  at  the  branches  £24,240,320,  decreasn  £7.3,880. 

BANK    OF    SPAIN  (25  pesetas  to  the  £). 


May  25, 1918 

May  18, 1918 

May  11,1918 

May  26,  1917 

£ 

£ 

f. 

£ 

Gold        

82,434,917 

82,104,675 

82,081,411 

57.763.990 

Silver 

28,347,212 

28,271,188 

28,152,710 

30,294,800 

Foreign  Bills 

3.833,394 

3,889,666 

3,880,170 

3,683,381 

Discounts  ana  Short  Bills  .. 

32,168,254 

30,213,788 

30. 359. '43 

31,542,089 

Treasury  Account,  &c. 

25.329.553 

25,464,641 

25,121,638 

25,386,836 

Notes  in  Circulation  .. 

117,070,644 

117.429.469 

118,043,430 

96,872,324 

Current   Aooounls,  Deposits, 

j9.551.336 

36,632,112 

36,261,232 

3i,620,7co 

Dividends,  Interests,  &Q.     ,. 

1.755,270 

2,200,328 

1.376,714 

1,398,356 

Sovernment  Securities 

2,069,026 

3,175,319 

2.466.340 

8,474.747 

BANK    OP    SWEDEN  (18  kroner  to  the  £). 


Gold 

Balance   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  .. 
Dlscountsand  Loans 
Notes  in  ciroulation 
Deposits  at  notice  .. 


,1  I 

May  18,1918.    May  II,  1918.  i   May4,  1918.    May  19,  1917. 


£ 
14,408,000 

7,211,000 

3,874,000 
13,294,000 
33,165,000 

5.844,000 


£ 
14,661,000 

7,407,000 

3, 83  >. 000 
13,443,000 
33,659000 

5,446,000 


£ 

14,307,000 

7,600,000 

3,885,000 
13,502,000 
34,293,000 

4.925,000 


£ 
11,278.000 

7,005,000 

3,271,000 

8,751,000 

23,4  4.000 

7,069.000 


BANK  OF  NORWAY  (18  kroner  to  the  £i. 

May  22, 1918. 

May  15, 1918 

May  7, 1918. 

May  22,  1917 

Gold 

Balaoce  abroad  and 

Foreign  Bills 
Gover'nt  Securities, . 
Discounts  &  Loans. 
Notes  Id  Circulation 
Deposits  at  notice. . 

6,6i8,co) 

3,812,000 

712,000 

17,771,003 

19.513,000 

6,155,00c 

£ 
6,618,000 

3,823,000 

712,000 

18,058,000 

19,640,000 

6,214,000 

6,731,000 

3,549,000 

712,000 

i8,48S,ooo 

19,777,000 

6,352,000 

7,162,000 

4,498,coa 

7oS,ooo 

12,652,000 

15.352,000 

7,189,000 

SWISS  NATIONAL  BANK  (25  francs  to  the  £). 


Gold  and  silver 

Bills 

Note  QlroulatlOD 
Current  and  deposit 
accounts 


May  23, 1918. 


£ 
17,316,888 

10,873,444 
26,873,776 

4,110,464 


May   15,  1918. 


£ 
17.307.276 
11.041,7)2 
27,248,168 

4.053,496 


May  7,  1918. 


4,181,088 


May  23,  1917. 


£ 
15.767,508 
6,141,556 
I9,87«.584 

3.834.444 


BANK   OF   ITALY   (25  lire  to  the  JE). 


April3a,  1918  April2a,i9(8, Feb. 3S,igi8,!April20, 1917 


£  £           \           £  £ 

Total  aash         43,013,640  42,314,480      43,772,240  40,430,72* 

Inland  BlHs       28,732,36a  29,285,500      29816,36a  22,141,400 

Foraign  BlHs 884,120  884,200           897,360  832,720 

Advances          26,187,000  24,5^0,320      24,284,40a  i4,65d,849 

Govemin«ot  securities        ..      8,802,640  8,803,840        8,795.840  8,591, jm 

Ciroulation         290,108,280  285,995,640     267,249,200  158,067,120 

Doposjts  at  notice      ..        ..     35,145,240  34.878.760      33,864,520  I9,i42,j6» 

Curpent  a.«oupt6         ..        .,     22, 829. 28*  24,957,8401    30,c90,520  11,783,560 

IMHEKIAL  BANK  OF  UbHMANY  I2U  marks  to  the  £1, 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances 
Note  circulation 
Deposits 


May  31, 1918.    May  23,  1918.  May  15,  1918.    May  31, 1917. 


123,305,250 
81,037,550 
727,238,600 
348,100 
600,134,400 
381,739,700 


123,294,450 
75.830,900 
700,022,350 
375.950 
585,012,350 
366,665,8<x> 


£ 
123,290,950 
77,792,300 
727,310,450 
306,800 
590,193.500 
387,508,500 


128,356,450 
22,334,800 
468,225,300 
486,500 
414,257,700 
226,908,150 


Clearing  House   return     during    March    £459,815,355,   against    £420,879,90' 
in  F«brnary. 

LONDON  COURSE  OF  EXCHANGE. 


Usance. 

June  4,  1918. 

June  6,  1318. 

Pla<». 

Sellers. 

Buyers. 

Sellers. 

Buyeri. 

Amsterdam  . .     . . 
Paris      

Switzerland..    .. 

Genoa,  &c 

Spain     

Lisbon  and  Oporto 
Copenhagen..     .. 
Christiania  ..     .. 
Stocliholm   ..     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills. .     . . 

Cable  transfers 

Three  months' bills..     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills  . .     . . 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

9.37 
27  14 
27.54 
18.75 
19.10 

66 

30 
15.18 
15 
13.86 

9.42 
27.19 
27.59 
18.85 
19.20 
43.60 
16.75 

67 

15.28 
15.10 
1395 

9.30 
27.14 

19.03 
43.80 
16.63 

66 

30 
15.17 
15  00 
C3.86 

9-35 
27.19 

^n 
19.13 
43.95 

16.73 

67 

32 

I5.S7 

13.96 

OPEN   MARKET  DISCOUNT.  Last  week.  Thisweeb 

Per  cent.    Per  cent. 


Thirty  and  sixty  day  remttted 
Three  uiontha  ,• 

Pour  mootbs  n 

Six  months  i 

Three  months  fine  iaiaad  bilU 
Pour  months 
Six  months 


554 


^be  Jnvestors'  IRcvtew. 


June  8,  1918. 


BANK  AND  DEPOSIT  RATES. 


Bank  of  Bnflaod  mtnimum  diiioouot  rate 
f  tt        short  loan  rates  .. 

Bankers' rale  on  deposits 

Bill  brokers' deposit  rale  (onll) 

u  y  and  14  dayr' notice 

Current  rates  for  7  day  loans 

It  for  call  loans  ., 


Last  week  Tbis  week 
Per  cent.    Per  cent. 


although  the. market  wa.s  r.athei  disappointed  with  the  omission 
of  .iny  definite  information  as  to  the  terms  of  the  forthcoming 


3 
3 

3^ 
3 


3 
3-1 


FOREIGN   RATES   OF   EXCHANfiE   ON   LONDON. 


Method  of 

of 

Last 

This 

Quoting. 

SI'S 

a.  M 
Id 

Week. 

Week. 

P&ris,  cheques 

Francs  10  jf  1 

23.12i 

27.1»} 

27.164 

Amsterdam,  cheques 

Florins  to  £1 

12.107 

9.48 

939 

Italy,  sight 

Lire  to  £1  ,. 

25-22J 

4?-424 
16.77J 

44  30 

Madrid,  sight 

Lisbon,  Eight 

Pesetas  to  ^i 

25.22J 

l6.69i 

Hence  to  milreis  .. 

53id. 

32<1. 

3id. 

Switzerland,  sight   ., 

Francs  to  /i 

25224 

19.08 

1888* 

Chrlsiiania,  si^bt 

Kroner  to  £1 

18.159 

1509 

»5-03a 

Stockholm,  sight 

Kroner  to  £i 

18.159 

•3-984 

.3.4s 

Copenhagen,  si^ht   .. 

Kroner  to  £1 

18.159 

15.29 

15-214 

Petrograd,  sight 

Roubles  to  £10     .. 

94-57 
974 

nom. 

nom. 

Aleiandria,  Sight 

Piasires  to  £1 

97J 

97* 

Bombay,  T.T. 

Sterling  to  rupee.. 

1/4 

1/5!* 

i/Sp 

Calcutta,  T.T 

Sterling  to  rupee.. 
Sterling  to  d»jllar.. 

1/4 

I/5i| 

i-sli 

Hong  Kong,  T.T 

Shanghai,  T.T 

3/1  J 

3/2 

Sterling  to  tael     .. 

_ 

4/6 

4/6« 

Singapore,  T.T 

Sterling  to  dollar.. 

^- 

l',t 

2/44 

Yokohan.a,  T.T 

Sterling  to  yen     .. 
Dollars  to  £1 

24.58<1. 

2/2A 

New  York,  cable 

4.86I 

4.-6i3 

4.'b4i 

Buenos  Aires,  T.T 

Pence  to  dollar    .. 

47-58d. 

51J1I. 

5'd 

Valparaiso,  90  days.. 

Fence  to  peso 

.7V. 

nM 

'>Tonicvideo,  T.l 

Pence  to  dollar    .. 

5ld. 

64W 
i3Sid. 

62  d. 

Rio  de  Janeiro,  90  days    .^ 

Pence  to  milreis  .. 

l6d. 

■sAd. 

The  Week's    Stock   Markets- 


Members  of  the  Stock  Exchange  take  the  hot-air  campaign  for 
the  re-investnient  of  War  Loan  dividends  in  War  Bonds  quite 
philosophically.     It  is  money  out  of  their  pockets,  but  they  do 
not  mind  that.     Some  of  them  think  that  the  more  or  less  ex- 
cellent portrait  of  Mr.    Lloyd  George  and  his   golden-treasury 
message  in  most  of  the  daily  papers  are  sufficient  compensation. 
And  a  few  have  been  heard  to  express  the  opinion  that  Dizzy, 
the    G.O.M.,  and  the   late   Lord   Salisbury,    didn't  know  their 
business — '•  not  'arf."    What  glorious  opportunities  they  missed 
in  regard  to  "  Peace  with  Honour,"  Home  Rule,  and  the  barter 
of    Heligoland  to  the    Huns  !      There  has   been  precious  little 
else  to  think  about  except  raging  scandals,  and  whatever  other 
defects  the    Stock   Kxchange  may   have  at  least    it  has  a  keen 
sense  of  humour.     And  so,  with  nothing  else  particularly  to  do, 
it  has  indulged  more  in  mild  persiflage  than  anything  else.     A 
little  momentary  excitement   was   created  by   the  long-expected 
Shell   bonus,    and   the    Nobel   report   was    conned  carefully    for 
hints  as  to  the  forthcoming  merger,  but  for  the  rest  things  have 
been  almost  as   dull  as   ditch-water,  and  there  is  little  else  to 
be  said  about  them  for  the  time  being. 


Consols 

War  Loan    sh% 

44% 

5%  1929-47. 

,  J-  "0/       **'  '9  »■«* 
India  3%  

„     34% 

Australian  5}%,  1920-^2  . 

Canada  4%,  1940-60 

.1       4i%.  '920-5 

Argentine  5%  1886 

Belifian  3% 

Braxil,  IQ13 

^,.      5%,i9i4    

Chinese  1896 


Week 


THTl 
Weekl 


,'% 


12 


Week 


Egypt  Unified  4% 

Caledonian  defd 

Gt.  Central  pio 

J.        „         dfd 

Gt.  Eastern 

Gi.  Nirthern  dfd 

Gt.  Western    

LanCR,  and  Yorks 

London  Brighton  defd.  .. 

London  Chatham  ord 

Canadian  Facitio   

E.  Indian  Guar.  44  %  debs 

Grand  Trunk  ord.    

Do,  ist  pf.  ... 

Do.  3rd  pf 

Antotagasta  dfd 

B.  A.  &  Pacific 

B.  A.  Gt.  Southern 

B.  A   Western    

Cent.  Argentine  ord 

Anglo-South  American   . 

b»iik  of  Australasia 

Bankof  N.S.  Wales 

Barclay  &Co.  "  A" 

Do.       "B" 

Capital  &  Counties   

Chattel ed  of  India    

Hongkong  &  Shanghai    . 

Lloyds  

Armstrnng,  Whit^vorth  . 

Birmincham   Stnall  Ann^ 

Cammell-Laird  ..... 
Cargo  Fleet 

Davis,  D.,5/   

Doriuan,  Long  

Associated  Cement 

Borax  dfd 

Bovrii    

Briti-ih  A mer.  Tobacco  pf. 

British  Aluniinium  

Briii^h  Oil  &  lake    

Brunner,  Mond 

Castner-Ke'lner 

Eastern  TeKgraph   

t£a>tmans . . . .  

Cunard '    4^ 

Furness,  Withy 65  6 

P.  &0.  dfd 33-4 

Royal  Mall '  126 


N.S.W.  5*.  19M-3   

„      55%.  1920-2 

„      ii%  Debs 

New  Zealand  4%,  1929    . . 
Queensland  4^%,  1920-5.. 
S.  Australian  5*%  1922-7. 
Union   of  S.  Africa  44%, 

1920-5    

Victor!*  44%.  1920-5 

We8tn.Au5.4%    

French  Warl-oan,  5%  .. 
Japan  44%  (isi),  1905  .... 

..     ■  5%  i9<^ 

Mexican  5%,  1S99   

Kussia4  % 

I.      4j%.i9^ 

.,      5%.  1906 

London  and  N.-W.     ... 
London  and  b.-W.  dfd.  . 

Metropolitan 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth. 'Eastern  

Stb.-Easiern  dfd 


Chesapeake. 

Erie 

Sonthem  ... 


Leopoldina 

Mexican  ord 

San  Paulo  (Brazilian). 
United  of  Havana 


London  &  Brazilian 

London  City  &  Midland. 
London  County  &  West.. . 

London  Joint  Stock 

Nat.Prov.(£lo4pd) 

Do.  (£12  pd 

Standard  of  S.A 

Union  Discount 


Kynochs   

Mond  Nickel  ord.. 


Nobel,  £ 

South  Durham  Steel  . . . 

Thornycroft    

Vickers 

ForestalLand 

Hudson's  Bay    

Imperial  Tobacco  '  C  '  pf 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

Fears.A.&F 

Underground  Inc.  Bds.  . 


Coats 

Jourtaulds 

inglii-h  Sewing  Cotton  . 
^ine  Cotton  Spinners  . . . 
Harrods  Stores 


As  a  lule,  when  large  disbursements  of  Government  divi- 
dends are  made,  a  considerable  proportion  comes  into  the 
Stock  Kxchange  for  reinvestment.  On  this  occasion,  when  the 
fliinost  record  sum  of  ;^'5o,ooo,ooo  was  distributed  on  June  i, 
the  campaign  for  the  reinvestment  in  National  War  Ponds  of 
whatever  surphis  could  be  spared  took  all  the  wind  out  of  the 
Stock  Exchange  sails.  Consequently  the  active  securities  in 
the  gilt-edged  market  have  not  been  particularly  well  sup- 
ported, and,  indeed,  the  5  per  cents,  have  dropped  back  quite  a 
substantial  fraction.  Colonial  loans  also  were  almost  totally 
neglected,  and  in  the  Foreign  division  scarcely  anything  trans- 
pired. Brazilians  and  Peruvians  showed  a  certain  amount  of 
strength,  but  Chinese  issues  were  flat,  and  the  usually  favoured 
Japanese  stocks  were  rather  dull. 

Home  Railways  have  scarcely  been  mentioned  at  any  point. 
One  or  two  stocks  have  moved  fractionally,  but  the  changes 
had  no  real  significance  with  regard  to  the  t.ttitude  of  the 
market,  and  it  may  be  said  that  the  whole  position  is  abso- 
lutely stagnant  for  the  time  being.  Americans  were  unaltered, 
except  in  the  case  of  International  Mercantile  Marine,  which 
has  been  going  up  point  by  point  on  the  expectation  that  the 
bulk  of  the  fleet  will  revert  to  the  British  flag.  Canadian 
I'acifics  did  not  change  hands  half  a  dozen  times,  and  Grand 
Trunks,  also,  were  left  alone,  but  the  tone  in  this  case  was 
rather  inclined  to  firmness.  Mexicans  had  nothing  to  show  in 
the  way  of  business,  and  Argentines,  after  rather  a  dull  open- 
ing, became  quite  firm,  although  the  amount  of  dealings  was 
very  small  indeed.  Antofagastas  fell  back  2  points,  and  one 
or  two  of  the  other  Foreign  Railways  usually  prominent  have 
been  more  or  less  on  the  down  grade. 

Bank  shares  had  nothing  to  show,  exoeot  in  the  case  of  one 
or  two  Indian  and  Australian  issues,  which  are  benefiting  from 
the  exceptional  conditions  which  now  prevail.  Brewery 
shares  were  exceptionally  in  favour,  Allsopps  and  Watney, 
Combes  being  prominently  strong.  Most  of  the  others,'  how- 
ever, were  content  to  remain  at  the  previous  levels,  which  are 
fairly  high,  considering  the  uncertainty  of  the  outlook.  Iron 
and  Steel  shares  were  rather  inclined  to  dulness,  but  Otis  Steel, 
after  falling  4  noints,  recovered  sharply  on  the  report,  and  in 
the  end  showed  an  advance  of  6J.  National  Exolosives  and 
Nobels  were  higher  on  the  excellent  report  issued  by  ihe  latter, 


Anglo  Argentine  istPf. 

brazilTiaction 

Da  racq    

Anglo-bgyptian  "  B"  . 

Buimah 

Lobitos 

Mt-xiran  Eagle  pf 

North  CaudSian 

Roumanian  Cons 

Allagar2/- 

Anglu-Dutch,  £1    

An^lo-Java  Run.  2/-     .... 

Anglo-M.,la>  2/ 

Ayer  Kuning  ^i 

Brit.  N.  Borneo  Trust  £1 

Bukit  Cloh2;- 

Bukil  Mertajam  2/-  

Biikii  Semi  awang  a/-  ... 

Carey  I'niied  £1   

Chersonese 

Chevi  t  2/-   

Dalkeiih  2/- 

Grand  Central  £1 

Highlands  £ 

Java  Investmt  nt  £1 

Johori-  Kubber  Lands  £1, . 

Kamunin    2/- 

Kinta  Kellas  2/-  

Labua/- 

Langcn  Java  £t 

Linggi2/- 

London  Asiatic  a/- 

Malayalam  £i 

Mtrrlimau  2/- 

Bechuanalaod  Exp 

Brakpa 

Brok.  n  Hill  Prop.  (8/-)   . . 

Cam  &  Moior j   w/' 

Central  Mining  I1C12)  ... 

Chartered    

City  Deep     

Cons.  Gold  Fields    

Cons.  Langlaagte 

Crown  Mines  (loy-J 

De  Beers  d^d.  (£2  101.)  . 

EastPooU  /-) I  2«/o 

East  K.>ud   4/ 

Gnduld iH 

Geevor  (to/-)   t^x 

Gov.  Areas  Mod     3H 

Gt.  Boulder  (a/-)    ll|6 


Dennis  BfOS   

Naiional  Steam  Car 

Rolls-Royce 

Shell 

Spies  (10;.) 

Trinidad  Leaseholds  .. 

Ural  Caspian 

Venezuelan 


Pataltng  2/- 

Perak  2/-   

Port  Dickson  2(-  

iRub.  Estates  Krian  2/-. . . 

Rubber  Trust  £t 

Sampang  (Java)  2/- 

Seaport  £1 

Sengat  2/- 

Seremban  £i 

ISialang  £1    

Singi^pore  Para  2/-    

.Singapore  United  2/-    ... 

Straits  Bertam  2/- 

Sumatra  Para  2/- 

Sungei  Bahru  £1   

Taiping  2/-  

jT-ndjoiie  £1    

fandjong  Malim  £1.... 

Tehran  £1  

1  Telogoredjo  £1 

1  Tempeh  2/- 

I  United  Serdang  2/-  .... 

I  ValdOr  2/- 

I  Vallawbrosa  2/- 


Kyshtim    

MaUionaland  Agency 
Me)  er  &  Charlton    .. 

Modder  "  B" 

Do.    Deep 

M^-sore 

Nigerian  Tin 

Pahang  (3/-) 

R^nd  Mines  (5/-)   .... 

Kenons 

Rio  Tinto  (£5)  

Ru-^so-Asi  tic 

South  Crtfty  (j;-).... 

Spring  Mines 

'latiganyika 

Tanalyk    

Van  Ryn  Deep  


90 


^  1 

:1 


merger   which   has  been   so  much  talked  about.     In  the  Land 
division,   Hudson's  Bays    dropped   back     i,   and    the    Nitrate 


June  8,    1918. 


Ubc  Jnveetors'  IReview. 


555 


market  was  weak.  Shipping  shares  generally  received  in- 
creased support,  and  prominent  among  the  advances  were 
gains  of  2  points  in  P.  and  O.  deferred  and  a  good  fraction  in 
Houlder  and  Prince  Line.  Among  Miscellaneous  industrials, 
Bradford  Dyers,  Cements,  and  Gamage  were  better,  but  Lipton's 
fell  back  a  little  in  spite  of  the  wonderfully  excellent  results 
shown  in  the  report. 

Oil  shares  received  a  great  deal  more  attention  than  has 
been  the  case  for  a  long  time  past,  owing,  doubtless,  to  the 
fact  that  the  "  Shell  "  bonus  has  directed  attention  to  the 
jxwsibilities  of  the  market.  Even  some  of  the  most  speculative 
Russian  and  Rumanian  concerns,  whose  future  is  extremely 
vague,  have  been  picked  up  by  bargain  hunters  who  are  pre- 
pared to  wait  for  future  developments.  Rubber  shares  have 
been  persistently  weak,  and  prices  have  given  way  very  severely, 
although  at  the  close  the  tons  was  just  a  shade  better.  At 
the  same  time,  the  market  has  lost  all  ronfidence,  and  whereas 
recently  buyers  were  scrambling  to  pick  up  what  they  re- 
garded as  bargains,  now  there  are  many  people  who  would  be 
only  too  glad  to  sell  their  holdings  at  the  price  they  paid 
for  them. 


LONDON    PRODUCE   MARKETS 

Sugar. — Allocations  were  again  chiefly  of  home  refined  goods, 
while  following  are  official  revised  prices  Lyle's  prarula'ed, 
No.  3  crystals,  whites,  "  K  "  quality,  also  yellow  crystals,  57s.  gd, 
Tate's  cubes,   caster  icing,   and    pulverised,  64s.   gd.  ;    crushed 

CURRENT     PRICES    OF    CHIEF    ARTICLES. 

WEEK    ENDING    JUNF?  7.   1918 


Last 

Tbis 

Last 

This 

Week. 

Week. 

We^k. 

Week. 

■ngftr— per   cwt. 

£    8.     d. 

£    s.  d. 

Wool— per  lb. 

£    8.   d. 

£    s.  d. 

duty    258,  98% 

Australian 

polarisation 

Scoured  Mertnn 

nom. 

nom. 

Tatp'«  Cubes      .. 

3    4    9 

3    4    9 

Sco-.ired  Cr'ssbr'  ' 

nom. 

nom. 

Crushed 

3     4    9 

a  17    9 

Greasy  Merino   '. . 

nom. 

nom. 

Granulated  .-     .. 

2   '7    9 

2  17    9 

Greasy  Crossbre'l 

nom. 

nom. 

Lyle's  granulated 

3  17    3 

2  17    9 

New     Zea  Ian  ' 

Foreign        granu- 

(scoured) Merino 

nom 

nom. 

lated,  first  mark? 

Greasy  Crossbn?! 

nom. 

nom. 

f.o.b.,  spot 

nom. 

nom. 

Cape  snow  whit* 

nom. 

nom 

GermanCubef.o.b. 

nom. 

nom. 

French  Cubr' 

Indiarnbberp.  i' 

prompt 

nom. 

nom. 

Plantation,      Spo' 

Crystallised,  West 
India 

Crepe..     ., 

0      2      2 

0    2     ij 

2  17    g 

2  17    9 

Beet,    88%    f.o.h 

nom. 

nom. 

Coal—per  ton 

Durham,  best 

nom 

nom. 

Tea — per  lb., duty 

^.d.  s.  d 

s.  d. 

Seconds        ., 

nom 

nom. 

x/-  lb. 
Indi^in  Pekoe 

I'last  Hartlepoot 

nom 

nom. 

I  4 

I  4 

Seconds        ..      . 

nom 

nom 

Broken 

I  4 
I  4 

I  4 

1  4 

Steams,  best 

32    6 

32  6 

Orange    ,, 

Seconds 

29    6 

28  6 

Broken    ,, 

J  4 

I  4 

Pekoe     Souofaong 

I  4 

1  4 

Lead— per  ton 

i     -    H 

£    "■  d. 

Ceylon  Pekoe 

I  4 

'  4 

iinglish   Pia. 

nom. 

nom. 

Broken    ,, 

I  4 

I  4 

I'oreign  soit,  net 

r295-£28a 

i^94-;f28i 

Orange    ,, 
Broken    ,, 
Pekoe  Souobong 

I  4 
1  4 
'   4 

I  4 
1  4 
I  4 

Quicksilver— i^  1 

boiile  tirsthan-' 

nom. 

nom. 

Cocoa  —  per  cwi. 

s   d.  s.d. 

s.  d.  .   d. 

Tin— per  ton 

dui)    6J.  per  lb. 
Trinidad  —perowi 

iiiiKlish  Ingots 

nom. 

^334 

B6  0  00  c 

86  0  go  0 

Do.     b^ih 

n^m 

;Cl35 

Grenada       ..     .. 
West  Africa..     . 

79  0  85  ( 

79  0  85  0 

Standard  cash 

f35o 

£351 

=5  0  65  c 

55  0  65  1 

I  ^n  Plates, per  bo 

nom. 

nom. 

Ceylon  Plantailon 

R5  0   01  ( 

'  5  0  ic(j  0 

Guayaqol)     .,     . 
OofTee — per     cw. 

up  to  go  0 

up  to  90  0 

Copper — per  ton. 
L'.nghsb,     ToUfj' 

duty  42/.  per  cwt. 

per  toD 
best  Selected 
Sheets            ..        . 

Bast  India    ..      . 
Jamaica 

iio-o  135-C 
8  -0  160-0 

iioo  135  0 

^00   I  60  2 

nom 

r'i<^iC>23 

£149 

£110-110^ 

nom. 
f'iQ-£i23 

Costa  Rica    .. 
ProvlBlonB- 

no-o  i37-o 

.10  0  Ij7  0 

Staudacd      ..     ■ 

,f'49    , 
fiio-iioj 

Butter.percwi 
Ausirniinn  fines) 
Argentine     , .     . . 
Irijsii  i^icdDieries 

Jute— per   ton. 

252/ 

252/ 

Native    hcsis    lor 

252/ 

252; 

sbipment 

nom. 

nom 

nom. 

nom. 

Dutch  d>>  0  .. 

nom. 

nom. 

OllB— 

Russian  Quest 
Paris  bashe-s      .. 
Danish  finest 
Britiany      rolls - 
doz.  ib.      ..     . 

nom. 

nom. 
nom. 

nom. 
nom. 
nom. 

l.iMseeti  per  ton. 
Rape,  crude   .... 

t^ull'n  i>ci  I., CI  11 
Petroleum  Oil.i- 

nom. 

£60 

nom. 
f66 

£60 

nom. 

nom. 

Bibs. 

I/I0\ 

1/105 

Bacon— per  cwt. 

Irish      

Continental.. 
Canadian 

Water  Wbilt 

i/iii 

l/iij 

Oil  Seeds, L.ins»^ 

188/ 

188/ 

Calcutta- pel    ton 

172/ 
i6g/-  72/ 

169;- 7  / 

Sp-^t 

By  agree- 
ment. 

i37  10 

American      ..     ,, 
Hama— put  owt. 

Irish       

Canadian      ..     .. 

i69/-jlio/ 

nom. 
162/- 165/ 

l69/-lbo/ 

nom. 
i6.;-l65,' 

Kape      

Iron— per  ton 
Cleveland  Cash  . 

£29-103^30 
nom. 

fJ9-lo/30 
nom. 

American 

125/-165/ 

125;-l65/ 

Tobacco  —  dm 

Ohfleae~per  cwi. 

nnniHiiiifactur.- 

Dutch    ..     .. 

Dom. 

nom 

8/^-10/44  per  lb. 

Caiiaoian     .. 

nnm. 

nom. 

ViiftiU'*"-'*'- 

I  6-2    ft 

I  6 -J    6 

English  <Jhetidar 

102/8- i4g/4 

102/8-149/4 

Kentucky  leat 

I  0-1    6 

I   '  -1    6 

Wilts  loal     .. 

nnm. 

nom. 

Latakia..     .. 

nom. 

nom. 

New  Zealaur. 

nom. 

noiii. 

Havana 

6    6    6 

1666 

Bice— per  cwt. 
Japan     

4t     3 

S.      •! 

41     3 

Cigars,  duty   157 
per  lb. 

2/  upds 

2/  upds. 

Rangoon  2  stars  . . 

26    3 

26    3 

Bjga-  ptji  120. 

English 

Irish      . .     . . 

Timber— Wood. 

Pitch  rine    ..     .. 

300/— 400 

sno;—  400 

40  0-41  0 
37  6-38  0 

39  0  41  0 
38  0  39 

l..di<ii<    tdn 

38  J/— 700/ 

jSo/—  700 

Danibb 

num. 

nom. 

Turpentine— 

Spelter— 

Ameticau  Spot  .. 

118/ 

n8/ 

G.O.B.  as  to  posi- 
tion      

£54  £50 

£54  £50 

Copra— per  ton 

Malabar        . .     . 

46    0    0 
46    0    0 

46    0    0 

Piour-persack. 

Cey  on 

46    0    0 

Country  Straight 

F,M.S.  Singapore 

45  to    0 

45  10    0 

Runs  ex  Mill.. 

44/3 

44/3 

F.M.    Straits      .. 

45  10    0 

45  '0    0 

granulated  and  white  pieces,  57s.  gd. ;  pieces  other  than  white, 
55s.  6d.  per  cwt. 

Coffee. — Futures  remain  in  the  same  dull  state,  and  quotations 
quite  nominal.  Spot  parcels,  however,  were  in  good  request,  and 
fully  steady  prices  were  secured  at  auctions,  which  were  chiefly 
made  up  of  Nairobi  and  Uganda.  Nairobi,  good  middling,  sold  at 
120S.  ;  fair  to  fine  bold,  logs.  to  134s.  6d.  ;  peas,  88s.  6d.  to 
lois.  6d.  Uganda,  bold  common  to  lair  padish,  90s.  to  103s.  6d. 
Costa  Rica,  greyish,  132s.  6d.  Some  St.  Paulo  and  Santos  were 
also  sold,  quay  terms. 

Cocoa. — Only  retail  sales  occurred  at  graded  prices,  owing  to 
restricted  offerings. 

Rice  continues  in  good  request,  also  beans. 

Spice. — Cloves  quiet  at  2S.  jd.  for  fair  Zanzibar  on  spot. 
Pepper  firmer,  with  sustained  inquiries.  Fair  black  Singapore, 
spot,  quoted,  is.  6d.  ;  Tellicherry,  sold,  is.  6Jd.  ;  Aleppy,  value, 
IS.  6d. ;  white  Singapore,  spot,  quoted,  2S,  8Jd,,  with  Muntok 
sold  at  2s.  8d.  to  2S.  8Jd.  Pimento,  spot,  sold,  sjd.  Tapioca 
steady.  Fair  flake,  spot,  sellers,  8d.  Penang  seed  pearl,  80s. ; 
and  fair  medium,  75s.     Broken  cassia,  spot,  steady  at  82s.  6d. 

Shellac — Only  limited  sales  in  spot  parcels  on  the  basis  of 
340S.  to  345s.,  fair  T.N. 

Rubber  market  dull,  and  prices  moved  in  buyers' favour,  though 
subsequently  a  steadier  tone  set  in.  Plantation  crepe,  spot  and 
June,  sold,  2S.  ifd.  to  2s.  id.  and  2S.  2jd. ;  July,  2s.  2jd.  to  2s.  lid. 
and  2S.  2jd. ;  July-December,  2S.  3 Jd.  to  2S.  2jd.  and  2S.  3|d,  ; 
October-December,  2S.  3|d.  to  2S.  3d.  and  2s.  4jd.  Ribbed 
smoked  sheet,  spot  and  June,  2S.  ofd.  to  2s.  and  2S.  id.;  July- 
December,  2s.  2jd.  to  2s.  ijd.  and  2s.  2|d.  Fine  hard  Para, 
also  soft  fine,  sellers,  3s.  id.  per  lb. 

Corn  (Mark  Lane). — Business  moved  quietly  during  the  week, 
though  prices  ruled  steady  for  all  cereals.  Native  wheat  quoted 
at  77s.  gd.  per  504  lbs.  Of  imported  grades.  No.  i  Northern 
Manitoba  held  for  82s.  4jd.  ;  No.  2  ditto,  also  hard  winter, 
80s.  gd.  ;  Australian,  85s.  6d.  ;  Indian,  87s.  to  88s. ;  and  La  Plata, 
82s.  6d.  per  4g6  lbs.,  all  landed.  Flour  :  G.R.  quoted  44s,  3d.  per 
sack,  ex  mill,  while  imported  makesrange  from  50s.  3d.  to  51s,  3d. 
per  280  lbs.,  ex  warehouse.  Maize  sparingly  offered.  American 
mixed,  ex  ship,  7gs.  6d  t0  79s.  gd.  ;  and  landed,  8is.  3d.  Barley 
largely  nominal.  English  milling,  62s.  gd.  to  63s.  gd.  per  448  lbs. 
Oats  firm  and  scarce.  English,  48s.  6d.  per  336  lbs.  ;  American 
white  clipped,  6is.  6d.  to  62s.  6d.  ;  and  Canadian  Western  No.  2. 
63s.  6d.  per  320  lbs.,  both  quay  terms. 

Cotton  (from  our  Manchester  correspondent). — The  market 
during  the  past  week  has  been  very  firm,  and  prices  have  again 
tended  to  harden.  Without  business  being  of  large  dimensions  a 
fairly  healthy  undercurrent  of  demand  has  been  experienced,  and 
numerous  sellers  have  bad  the  opportunity  of  booking  more 
orders  than  they  care  to  entertain  at  the  present  time.  The 
excellent  advices  relating  to  the  American  cotton  crop  are  being 
maintained,  and  the  oflicial  Government  report  of  82.3  per  cent., 
against  6g  5  per  cent.  12  months  ago,  is  rather  better  than 
expeced.  There  is  nothing  to  complain  about  as  to  the  news 
relating  to  the  Egvptian  growth.  The  Trade  Union  officials  have 
got  the  Cotton  Control  Board  to  postpone  the  abolition  of  tharota 
system  of  "  playing  off  "  workpeople  under  the  restriction  of  out- 
put scheme.  Without  there  being  any  general  flow  of  business 
in  piece  goods  for  our  outlets  abroad,  a  fair  turnover  has 
transpired  in  small  lots.  India  has  given  a  little  more  sup- 
port in  grey  shirtings,  and  trade  has  again  been  done  in 
light  fabrics  for  Bombay.  It  is  too  early  for  anything  definite  to 
be  said  as  to  the  Monsoon  this  season,  but  the  progress  of  the 
rains  is  being  watched  very  closely.-  News  Irom  China  remains 
discouraging,  and  that  part  of  the  world  is  undoubtedly  in  a  very 
disturbed  state.  Further  operations  of  an  encouraging  extent 
have  transpired  for  certain  minor  outlets  of  the  Far  East,  such  as 
Java,  Singapore,  and  the  Straits  Settlements.  Moderat*  lois  have 
changed  hands  for  South  America  in  printing  ai  d  bleaching 
cloths.  Plenty  of  activity  continues  10  show  itself  in  home  trade 
circles.  It  has  been  quite  impossible  to  purchase  American  yarns 
in  lots  of  quantity  as  supplies  are  not  available.  The  scramble 
for  stock  lots  continues  very  acute.  Prices  have  continued  to 
advance.  It  is  being  suggested  that  the  time  is  not  far  distant 
when  looms  will  have  to  stop  as  a  result  of  the  shortage  of  twist 
and  weft.  An  encouraging  turnover  has  transpired  in  Egyptian 
yarns  in  qualities  suitable  for  Government  cloths. 


A  return  has  been  extracted  from  the  Government  setting 
forth  the  amount  of  paper  consumed  in  the  departments  since 
the  war  began,  and  the  figures  incline  the  mind  of  the  oppressed 
newspaper  owner  to  thoughts  of  some  bitterness.  In  the  year 
1914-15,  that  is  to  say  the  Government  financial  year  ending 
on  March  31,  the  consumption  of  paper  in  the  Government 
departments  was  19,700  tons.  In  the  succeeding  year  it  jumped 
to  31,000  tons,  and  in  1916-17  to  41,500  tons,  while  last  year 
it  was  55,000  tons.  There  is  no  call  here  to  indulge  in  rhetoric, 
hut  some  idea  of  how  the  paper  flies  may  be  got  from  a  brief 
letter  in  Wednesday's  Times.  The  writer  of  it  says  that  he 
has  two  accounts  of  War  Loan  stock  at  the  liank  of  England 
marked  "A"  and  "B"  respectivel /,  his  last  purchase  being 
on  March  4  last.  In  virtue  of  this  position  he  received  on 
June  I  eight  separate  dividend  warrants,  eight  letters  inciting 
him  to  reinvest  the  dividends,  each  letter  having  a  note  on  it, 
"The  need  for  saving  of  paper  explains  the  small  size  of  this 
letter,"  and  eight  separate  envelopes.  This  looks  like  super- 
fluity of  zeal  conducing  to  waste,  and  it  is  much  the  same  in 
all  the  Government  departments ;  but  what  else  is  there  to 
expect  when  they  swarm  with  people  untrained  to  business  and 
for  whom  it  is  impossible  to  find  employment  ? 


556 


^be  Jnvestots'  IReview, 


June  8,  1918. 


PUBLIC     INCOME     AND    EXPENDITURE, 

The   following  are   the   receipts   into   and   issues  out     of    the 
Exchequer  between  April  1,  1918,  and  June  1,  1918:  — 


Balances   in    Exchequer   on 

April  I— Bvik  of  Enel.uid  . 

Bank  of  Ireland    . . 


Rkvehdb. 

Customs  

Excise  

Estate,  &o.,  Duties 

Stamps 

Land  Tax 

House  Duty    

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Duties,  &c.. 

i^and  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    from    Sundry 

Loans,  &c 

Miscellaneous 


Revenue 
Total 


Estimate 

for  tlie 

Year 

1918-1919. 


Total  Receipts 

into  the 

Excbequerfroin 

April  I,  1918,  to 

June  t,  1918. 


Total   Receipts 

into  the 
Exchequer  from 
April  I,  1917,  to 
I   June  «,  1917. 


i 
'9.361,578 
1, 668, 4;  a 


31,030,030 


14,331,000 
7,267,000 
4,993,000 
1,283,000 

265,000 


22,421,000 

42,1 31,000 

86,000 

4,600,000 

110,000 

2,791,616 


100,479.5'! 


Other  Receipts. 

Repayment  of  Advances  for  Bullion 

For  Treasury  Bills  (tor  supply)    

For  5  per  Cent.  Exchequer  Bonds,  1922    

For  3  per  Cent.  Exchequer  Bonds,  1930    ... 

For  Wat  Savings  Certificates 

For  other  Debt  (War  Loan  Acts,  1914-1917)  . 
For4  per  Cent.  War  Loan,  1929-1942,  and  5  per 

Cent.  War  Loan,  1929-1947    ! 

For  National  War  Bonds    I 

Temporary  Advances— Ways  and  Means | 


">:.509,54i 


950,000 
710,212,000 

799.500 
15.300,000 

111,523,322 


♦128,613,000 
148,028,440 


ToU). 


[,236,93';, 803 


95.2c9.947 
1,225,912 


26,435.859 


12,181,000 
7,374,000 
5,657,000 
1,028,000 

290,000 


19,609,000 
28,185,000 

111,000 

4,500,000 

90,000 

9.453 
796,086 


79.P30.539 


106,266,398 


510,000 
312,716,000 
31,825,000 

6,9";o,ooo 

87,264,767 

127,250,000 
144,105,000 


816,857,165 


^Excluding  sales  through  joint  stock  and  private  banks  not  yet  orought  to  account. 


Expenditure 
and  other  issues. 


Estimate  for 
the  Year 
1918.19. 


I  Total  Issues 
out  of  the  Ex- 
chequer to  meet 
payments  from 
(April  I,  1918,  to 
I     June  I,  1918. 


Total  issues 
out  of   the    Ex- 
chequer to  meet 
payments    from 
April  I,  1917,  (o 

June  2,  1917. 


Expenditure. 
Permanent  Charge  of  Debt  . 
Interest,  &c.,  on  War  Debt . 
Payments  to  Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    


Expenditure 


\    Exchequer 
Expenditure 


Other  Issues. 

Por  Advances  for  Bullion 

For  Advances   for    Interest    c 

Bonds     under     the     Capital 

(Money)  Act,  1904    

Under  Telegraph  (Money)  Acl»  1913 

Under  Post  Omce  (London)  Railway  Act,  1913 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supplv 

For  War  Loans,  Exchequer  Bonds,  &c. .under 

Section  34  of  Finance  Act,  1917  

For  War  Expenditure  Certificates  under  War 

Loan  Act,  1916    

For  other  Debt  under  the  War  Loan  Acts, 

19M  to  1917  . .  

For  Depreciation  Fund  under    the    Finance 

Act,  1917  

Old    Sinking    Fund,     1910-11,    issued    under 

the  Finance  Act,  191 1,  Section  16  (i)  (b) 
Temporary  Advaaces  repaid— Ways  and  Means 


3.278,855 
59.412,520 

450,380 

261,415 
439.378.900 


502,782,070 


Balances  in  Exchequer- 
Bank  of  England 

Bank  of  Ireland 


1918. 
June  I. 

10,049,761 
590,395 


1917. 

June  3, 

c 

15.564,280 
J, 081, 180 


Total 1,236,935,803 


1,300,000 

84,909 

15,000 

12,000 

106,300 

♦677,5+7,000 

7.741,909 

■fa8,6oo 

9.497,837 

4,160,022 

20,000 
23,000.000 


1,226,295,647 


10,640,156 


3.433,784 
41,387.599 

430.380 

251.123 
424,235,300 


469,758,186 


84,909 

30,Q00 

I75,4C0 
206,937,000 

56,210 


122,500,000 


800,211,705 


16,645,460 


816,857.165 


M CMC.— Treasury  Bills  outstanding  oc  June  1,1918 »£i,oo5, 587,000 

*  Includes  ;f  340,000,  the  proceeds  of  which  were  not  carried  to  the  l:.xchequer 

within  the   period  of  the  account,  besides  a  part  (not  yet  ascertained  and 

brought  to  account)  of  the  Bills  tendered  as  subscriptions  to  National  War  bonds, 
i  Includes  part  payment  of  Bills  and  Certi6cates  tendered  as  subscriptions 

to  National  War  Bonds 


a  fall  in  the  grade  of  ore  developed,  and  are  2S.  lower  at  ics 
On  the  other  hand,  New  Modders  at  23,  Modder  Deeps  at  7^, 
(lold  Fields  at  32s.  3d.,  lirakpans  at  4  23-32,  and  \^an  Ryn 
Deeps  at  3i,  are  fractionally  higher  on  the  week.  Lively  scenes 
have  marked  the  annual  meetings  at  Johannesburg  of  some  of  the 
companies.  At  the  Knight  Central  meeting  a  resolution  was 
carried  in  favour  of  immediate  liquidation,  it  being  claimed 
that  the  assets  were  worth  8s.  per  share  against  a.  market  value 
of  3s.  The  chairman  promises  an  early  report  on  the  situation. 
At  the  Springs  Mines  meeting  the  board  was  charged  with  not 
obtaining  a  sufficient  quid  fro  quo  for  the  facilities  to  be  offered 
to  the  Spiings  West  Co..  and  a  resql,ution  was  passed  by  53 
to  37  in  favour  of  a  ca.sh  dividend  instead  of  the  proposed 
Springs  West  scrip.  A  poll  is  being  taken  on  th's  issue.  As 
a  result  of  the  criticisms  made  at  the  meeting  of  the  Wit  Deep 
the  opposition  has  obtained  a  couple  of  seats  on  the  board. 
Among  Rhodesian  shares  provincial  investors  have  bought 
Chartered^  at  over  15s.,  and  Tanganyikas  at  3  5-32,  and  Lonely 
Reefs  at  34s.  qd.  have  met  with  support.  The  news  that  the 
luleen  Alannah  mine  is  to  be  temporarily  closed  down  owing 
partly  to  a  machinery  breakdown,  is  a  reminder  of  the  inevit- 
able tendency  of  the  rise  in  working  costs.  In  the  diamond 
group  De  Beers  deferreds  and  preferreds  have  fallen  A  to  12^, 
and    Premier   deferreds    |    to   6J. 

Copper  and  Miscellaneous. 
Copper^shares  have  been  inclined  to  weaken.  Mount  Elliotts 
have  fallen  %  to  354;  on  news  of  a  strike  of  workmen,  Rio  Tintos, 
however,  have  risen  J4  to  66^-  Broken  Hill  shares  have  been 
in  good  request,  and  with  shares  in  rather  short  sup>ply  prices 
have  risen  appreciably.  This  has  been  the  case  particularly 
with  Zinc  Corporation  issues;  the  ordinary  has  risen  23.  to  27s., 
and  the  preference  about  5s.  to  63s.  It  is  now  learned  that  the 
terms  of  the  Imperial  zinc  contract,  while  giving  the  companies 
substantial  benefits,  will  not  enable  them  to  make  unduly  large 
profits.  Tin  shares  have  been  in  some  request,  but  price  move- 
ments are  unimportant.  Mongus  have  risen  to  i6s.  6d.  on  the 
report,  and  Ropps  at  24s.  were  favourably  affected  by  the  big 
increase  in   dividend. 

Mexican  shares  have  attracted  attention  on  news  that  the 
Camp  Bird  has  struck  what  appears  to  be  the  main  vein  at 
about  11,000  feet  from  the  portal  of  the  tunnel  which  was  started 
in  1916.  The  ordinary  has  ri.sen  is.  6d.  to  9s.  6d.,  and  the 
preference  6d.  to  14s.  Santa  Gertrudis  at  14s.  and  Mexico  of 
El  Oro  at   5K    are  better. 


The  Week  in  Minos. 

The  German  push  has  caused  the  Mining  markets  to  behave 
cautiously  this  week,  and  with  business  consequently  on  a 
small  .scsje,  prices  have  shown  a  tendency  to  decline.  On  the 
whole,  however,  the  effect  has  been  very  slight,  and  the  tone 
improved  towards  the  end  of  the  week.  Broken  Hill  shares  have 
been  moderately  active  and  strong,  and  Mexican  shares  have 
been  prominently  firm. 

South   and   West  Africans. 

In  the  South  African  market  East  Rands  have  been  sold  on 
the  chairman's  statement  at  the  meeting,  and  are  is.  lower  at 
js.,  but  the  debentures  have  been  inquired  for  up  to  $•;%■  New 
Rleinfonteins  have  been  on  offer  on  the  quarterly  report  showing 


MINING  NEWS. 


Zinc  Corpokation. — The  report  for  the  year  1917  shows  a 
further  increase  in  profits,  the  total  being  ^^225, 154,  against 
;^2i2,478.  It  is  proposed  to  pay  a  final  participating  dividend 
of  2s.  6d.  per  share  on  both  classes  of  shares,  mailing  4s.  on 
the  ordinary  and  8s.  on  the  preference,  or  6d.  more  than  for 
1916.  Reserve  account  for  redemption  of  wasting  assets  is 
credited  with  ;fi5,ooo,  and  the  carry  forward  is  reduced  from 
^£^25,970  to  ^7,220.  As  a  result  of  the  year's  development  pro- 
gramme, and  after  treating  134,618  tons  of  ore  from  the  mine, 
the  ore  reserves  at  the  close  of  the  year  showed  an  increase  of 
176,369  tons,  and,  exclusive  of  the  zinc  lode,  were  estimated 
at  1,887,000  tons,  having  an  average  grade  of  14.3  per  cent, 
lead,  2.6  ozs.  silver,  and  9.2  per  cent.  zinc.  Tailings  remain- 
ing in  the  dumps  at  December  31  were  estimated  at  951,350  tons. 
Owing  to  the  lack  of  shipping,  the  Zinc  Producers'  Associa- 
tion were  unaijle  to  dispose  of  more  than  a  small  quantity  of 
zinc  concentrates,  and  the  bulk  of  that  produced  had,  there- 
fore, to  be  stacked  at  the  mine.  The  proceedings  in  the  claim 
against  Messrs.  Aron  Hirsch  and  Sohn  have  now  been  finally 
decided  in  favour  of  the  company  in  the  courts  in  England 
and  Australia. 

Princess  Estate. — The  accounts  for  1917  show  a  profit  of 
£,iifi^o,  and  ;,f25,495  is  carried  forward,  against  jf 9,174.  The 
profit  for  1916  was  ^7,008.  No  dividend  has  been  paid  since 
igii.  The  tonnage  milled  was  261,600  tons,  or  15,300  tons  less 
than  in  iqi6;  the  yield  was  7d.  higher  at  25s.  6d.,  but  as  costs 
rose  to  the  same  extent,  the  profit  ratio  was  the  same  as  in 
IJ16,  namely,  6Jd.  per  ton.  Revenue  totalled  ;£334,373,  against 
/.'345,o25,  and  the  total  profit  was  £■;()!,  larger  at  ;^i  1,850.  Re- 
serves of  ore  have  been  increased  by  27,000  tons  to  503,000  tons, 
valued  at  7.1  dwts. 

New  Kleinfontein. — During  1917  the  tonnage  milled  by  this 
concern  increased  by  54,270  tons  to  785,090'  tons,  which  yielded 
;^i,oi3,29g,  against  ;f9i3,472.  The  yield  per  ton  was  25s.  gd., 
against  24s.  iid. ;  working  costs  averaged  20s.  3d.,  against 
19s.  jd.,  and  the  rate  of  profit  was  thus  5s.  6d.,  the  same  as 
for  1916.  The  working  profit  was  ;^2 16,289,  an  increase  of 
^^13,350.  A  dividend  of  5  per  cent,  was  again  paid  during 
the  year,  but  the  carry  forward  is  raised  from  ;f9,i5o  to 
;fii5,548,  after  writing  off  ;f26,332  in  respect  of  shaft-sinking 
and  ;t5,8o8  in  respect  of  macJiinerj',  plant,  &c.  Owing  to  lack 
of  labour,  the  plant  was  operated  at  only  about  75  per  cent,  of 
its  capacity.  Reserves  of  ore  have  decreased  from  2,943,994 
tons  to  2,214,000  tons,  valued  at  5.64  dwts.  per  ton,  against  5.37 
dwts.  Development  in  the  old  Kleinfontein  section  should  be 
entirely  completed  some  time  during  1920,  and  the  supply  of 
ore  for  reduction  purposes  from  this  section  will  £;radu!illv  de 
crease  until  that  year,  when  from  40  to  50  thousind  ton's  nc- 
month  will  be  available  from  this  section,  gradually  becoming 
less  in  further  periods.  The  general  future  of  the  mine  will, 
therefore,   depend  upon  the   value  of  development  in   the   Apex 


June  8,    1918. 


^be  Jiiveetors'  IReview. 


557 


section  of  the  mine.  The  latest  quarterly  report  rather  points 
to  a  decrease  in  the  ratio  of  payable  ore  now  being  developed. 

Utah  Copper. — The  gross  production  of  copper  in  1917  was 
204,855,118  lbs.,  against  196,752,631  lbs.  in  1916.  In  addition, 
51,112  ozs  of  gold  were  obtained,  and  498,820  ozs.  of  silver. 
The  nett  cost  of  production  was  10.99  cents  per  lb.,  as  against 
6.95  cents.  There  was  set  up  as  a  reserve  for  taxes  $5,015,000, 
which  will  more  than  meet  the  actual  taxation,  which  was 
$4,381,205.  Nett  operating  income  was  ^23,910, 777,  and  the 
total  income  applicable  to  dividends  was  $28,695,495,  or  $17.66 
per  share,  against  $39,738,675,  or  $24.46  per  share  in  1916. 
Quarterly  dividends  amounting  to  $14  a  share  were  paid,  be- 
sides a  Red  Cross  dividend  of  50  cents  per  share,  absorbing 
altogether  $23,555,105.  The  usual  depreciation  of  plant,  5  per 
cent,  of  the  total  cost,  was  included  in  operating  costs.  The 
surplus  remaining  from  operations  was  $5,140,390,  against 
$19,655,063. 

British  Broken  Hill. — The  report  for  the  half-year  ended 
December  31  shows  that  the  nett  profit  amounted  to  ;^93,678, 
against  £40,^53  in  the  previous  six  months.  After  deducting 
taxes,  there  remains  ;^54,523.  It  is  proposed  to  pay  a  final 
dividend  of  2s.  per  share,  tax  free,  making  3s.  per  share, 
against  is.  per  share  for  the  preceding  half-year.  On  account 
of  the  current  half-year  a  dividend  of  2s.  per  share,  tax  free,  is 
to  be  paid  on  July  2.  There  were  produced  during  the  half- 
year  ended  December  31  11,439  tons  of  lead  concentrates  and 
9,530  tons  of  zinc  concentrates.  Costs  averaged  32s.  2^6.  per 
ton.  Ore  developed  since  the  last  estimate  was  made  has 
slightly  exceeded  that  extracted.  At  the  close  of  1917  the  re- 
serves stood  at  1,054,100  tons,  valued  at  6.g  ozs.  silver,  13.3  per 
cent,  lead  and  11.5  per  cent,  zinc,  which  compared  with  1,053,250 
tens  at  June  30,  1916. 

Waihi  Grand  Junction. — In  1917,  116,130  tons  of  ore  were 
treated  for  a  yield  of  ;^220,090,  against  125,780  tons,  which 
produced  jf 222, 736  in  1916.  Sundry  receipts  amounted  to 
;^8,o96,  and  the  nett  revenue  from  gold  was  ^^211,944,  making  a 
total  of  ^^220,040.  After  deducting  ;^i3,32i  for  depreciation, 
the  profit  comes  out  at  £-]2,<)oi,  against  ;^49,796.  It  is  proposed 
to  pay  a  final  dividend  of  5  per  cent.,  free  of  tax,  making  10 
per  cent,  for  the  year,  the  same  as  for  1916,  leaving  ^^36,479, 
against  ;^2o,oi6,  to  be  carried  forward.  The  yield  per  ton  of 
ore  was  is.  5d.  higher  at  39s.  gd.  Reserves  of  ore  show  a  de- 
crease of  26,100  tons  at  131,600  tons. 

Lonfly  Reef. — The  report  for  1917  makes  very  satisfactory 
reading.  Tonnage  crushed  was  slightly  less,  but  the  grade  of 
ore  milled  was  considerably  higher.  There  were  crushed  57,870 
tons,  against  59,240  tons  in  iqi6,  but  the  yield  was  75s.  6d.  per 
ton,  an  increase  of  16s.  8d.  Costs  rose  from  36s  .7d.  to  40s.  5d., 
and  the  total  profit  was  ;^io6,i42,  against  ;^68,i87.  Share- 
holders have  already  received  25  per  cent.,  less  tax,  against  20 
per  cent,  for  1916,  but  a  bonus  of  5  per  cent,  is  now  declared, 
making  30  per  cent.  This  bonus  will  be  paid  with  the  interim 
in  August.  After  writing  ;^i7,335  off  ifor  depreciation,  &c., 
there  remains  ^'24,355,  against  ;^i6,573.  Reserves  of  ore  stand 
at  145,616  tons,  against  145,300  tons,  but  the  value  is  1.37  dwts. 
lower  at  18.69  dwts.  per  ton.  Two  new  levels,  Nos.  18  and  19, 
have  now  been  opened  up. 


Tea,  Oil  and   Rubber. 


We  are  dealing  more  fully  elsewhere  with  the  rubber  outlook, 
and  need  not  go  over  the  same  ground  here.  This  is  the  kind 
of  stuff  we  get  from  tlie  alleged  experts  : — "  The  pessimistic 
feeling  noticeable  last  week  appears  to  be  wearing  off,  and  the 
public  are  taking  more  interest  in  the  market.  Among  those 
interested  In  the  industry  and  in  the  share  market  a  confidence 
as  to  the  future  is  noticeable.  .  .  .  The  buying  of  shares 
lately,  although  not  on  a  large  scale,  has  come  from  good 
quarters,  and  the  improvement  in  the  price  of  the  commodity 
has  to  some  extent  stimulated  business."  Except  to  close  ob- 
servers it  would  be  difficult  to  gather  from  this  statement  that 
quotations  have  been  almost  consistently  on  the  down  grade, 
although  they  close  rather  above  the  worst,  or  that  the  same 
people  who  were  preaching  rubber  up  to  double  the  present 
price  are  gloriously  elated  because  it  has  risen  from  2s.  ij^d. 
to  2S.  2'^d.  !  Wonderful,  is  it  not?  And  last  week,  while  just 
under  400  tons  were  landed,  nearly  750  tons  were  delivered. 
Hooray,  hooray,  consumption  is  almost  double  arrivals  !  H'm, 
stocks  are  15,350  tons,  against  9,130  tons  a  year  ago,  when  they 
were  not  regarded  as  at  a  famine  level. 


NoRDANAL  (JOHORE)  RUBBER  ESTATES,  I,TD. — Year  to  Decem- 
ber 31.  Capital  ^280,000  in  £\  shares.  Reserve  ^35,000.  Out- 
put 639,550  lbs.,  increase  33,000  lbs.  ;  average  price  2S.  5.85d., 
against  2S.  4.55d.  ;  all-in  cost  i.3.55d.,  against  is.  i.79d.  ;  nett 
profit  ;f  40,050,  an  increase  of  ^600 ;  but  the  dividend  is  re- 
duced from  13  per  cent,  to  11  per  cent.,  and  the  carry  forward 
is  increased  by  ^9,000  to  ^£'14,300.  For  the  current  year  the 
crop  will  be  limited  to  512,000  lbs.  The  cultivated  area  is 
2,485  acres,  of  which  360  acres  were  planted  in  1914  and  the 
rest  between  1904  and  1913.  There  are  1,760  acres  in  reserve, 
and  output  can  be  largely  increased  whenever  it  is  considered 
desirable  to  do   so. 


DjASiNGA  RuDBES  AND  PRODUCE  Cc,  LXD. — Year  to  June  30. 
Capital  j;;'36o,ooo  in  £,1  shares.  Total  area  o£  the  estate,  41,350 
acres,  of  which  6,538  acres  are  planted  with  rubber  and  tea. 
Output  of  rubber,  439,800  lbs.,  increase,  200,000  lbs.  ;  average 
price,  2S.  9.27d.,  against  2s.  g.55d. ;  all-in  cost,  is.  6.57d., 
against  is.  7.39d.  Output  of  tea,  361,000  lbs.,  increase,  205,000 
lbs.  ;  average  price,  7.23d.,  against  io.54d. ;  f.o.b.  cost,  9.7id., 
against  is.  6.74d.,  all-in.'  Nett  profit,  ^,^22,690,  increase 
^10,650,  and  with  ^3,150  brought  in  there  is  a  total  of  ^25.840, 
which  it  is  proposed  to  carry  forward  .subject  to  Ned. -Indies- 
war  and  other  taxes.  A  year  ago  a  dividend  of  3  per  cent. 
was  paid.  There  has  been  unavoidable  delay  in  realising  th« 
company's  produce  owing  to  freight  scarcity  and  other  war 
conditions,  but  the  estate  should  ultimately  prove  a  fine  one. 

United  Sumatra  Rubber  Estates,  Ltd. — Year  to  December  31. 
Capital  ;f  1 10,000  in  2s.  shares.  Reserves  ^£83,400.  Output 
997,100  lbs.,  an  increase  of  156,000  lbs.  ;  average  price  2s.  4id., 
against  2s.  7.62d. ;  all-in  cost  is.  2d.,  against  is.  0.73d.  Copra 
yielded  6,860  piculs,  an  increase  of  2,700  piculs,  but  the  amount 
realised  was  only  ^^6,150  out  of  a  total  revenue  of  ^114,800. 
Estimate  for  the  current  year,  8,000  piculs.  Nett  profit  ;^62,6oo, 
a  decrease  of  ;^6,2oo,  and  after  placing  £(i,<xio,  or  ;f  1,000  more, 
to  reserve,  the  dividend  is  reduced  from  lod.  to  yd.  per  share, 
leaving  pif 3,000  more  at  ;^33,8oo  to  be  carried  forward,  subject 
to  excess  duty.  This  impost,  adjusted  to  the  end  of  1916, 
amounted  to  £2o,r^cp.  For  the  current  year  the  rubber  crop  is 
estimated  at  1,138,000  lbs.,  but  this  will  be  considerably  reduced 
owing  to  the  shortage  of  freight. 


DIVIDENDS    ANNOUNCED. 

Assam  Railways  and  Trading  Co. — On  "A"  stock  4  per 
cent,  for  half-year  ended   December  31,  the  same. 

Angela  Nitrate  Co. — Final  15  per  cent.,  less  tax,  making  total 
of  25  per  cent,  for  year,  against  21^  per  cent,  for  1916. 

Brazilian  Traction,  Light  and  Power  Co.— Quarterly  \\  per 
cent,  on  preference  shares,  payable  on  July  1. 

Broken  Hill  South  Silver  Mining  Co.- — 6s.  per  share,  pay- 
able June  28,  same  as  a  year  ago. 

Bentley's  Yorkshire  Breweries. — Interim  at  rate  of  5  per  cent, 
on  ordinary.  No  interim  was  paid  a  year  ago,  but  full  divi- 
dend for  year  was  9  per  cent. 

British  South  African  Explosives  Co. — Past  year  11  per  cent, 
(subject  to  deduction  of  is.  in  pound  for  South  African  tax  and 
2S.  6d.  in  pound  for  British  income-tax),  same  as  for  previous 
year. 

Brunner,  Mond  and  Co. — Ordinary  for  half-year  ended 
March  31  of  6  per  cent.,  less  tax,  making  11  per  cent,  on  new 
capital  for  year ;  ;if  250,000  is  placed  to  reserve ;  forward 
;^  119,000.  Since  interim  was  paid  shareholders  have  had  three 
shares  added  to  every  two  held. 

Carreras,  Ltd. — Interim  on  ordinary  shares  at  rate  of  8  per 
cent,  per  annum  for  half-year  ended  April  30,  payable  on 
June  ig. 

Canadian  Car  and  Foundry. — -3^  per  cent,  on  account  of 
arrears  of  preference  dividends,  payable  July  15  next. 

Canadian  General  Electric  Co. — Quarterl^y  2  per  cent,  for 
three  months  to  June  30,  being  at  rate  of  8  per  cent,  per  annum, 
on  common  stock,  payable  on  July  i,  same  as  a  year  ago. 

Dundee  Coal  Co. — 10  per  cent. 

Ebbw  Vale  Steel  and  Iron  and  Coal. — 15  per  cent,  on  ordinary 
shares  for  year  ended  March  31  last,  same  as  for  previous  year. 

East  Indian  Railway  Co. — ;^i  7s.  per  cent  on  deferred 
annuity  capital  and  deferred  annuity  capital  Class  D,  for  com- 
pany's share  of  surplus  profits  for  half-year  ended  March  31, 
in  addition  to  guaranteed  interest  of  £3.  per  cent,  for  half- 
year  ending  July  31,  1918.  Total  return  for  12  months  ended 
March  31  £(>  16s.  per  cent.,  against  £(>  14s.  per  cent,  for  pre- 
vious year. 

Great  Indian  Peninsula  Railway  Co.— 35s.  out  of  surplus 
profit  for  year  ended  March  31,  to  be  paid  in  addition  to 
guaranteed  interest,  making  a  total  of  £■>,  5s.  for  half-year, 
less  tax. 

Godfrey  Phillips,  Ltd.— Final  of  2}  per  cent,  on  ordinary 
shares  for  1917,  making  12J  per  cent,  for  year;  forward 
;,f  79,146,  subject  to  excess  profits  duty. 

Galaha  Ceylon  Tea  Estates  and  Agency  Co.— On  preference 
shares  for  half-year  ending  June  30,  at  rate  of  6  per  cent.,  will 
be  paid  on  July  1,  less  tax  at  5s.  6d.  in  the  £. 

Irvine's  Shipbuilding  and  Dry  Docks  Co. — Interim  at  rate 
of  8  per  cent,  per  annum  for  half-year  ending  June  30  on  pre- 
ference shares. 

Lungla  (Sylhet)  Tea  Co.— Final  preference  3  per  cent.,  less 
tax,  for  1917,  to  be  paid  on  July  1. 

Lahat  Mines.— Final  2J  per  cent,  (less  tax)  for  1917,  and  an 
interim  of  ^\  per  cent,  (less  tax)  foi  current  year's  profits,  both 


558 


XEbe  Jnvcetors'  IReview. 


June  8,  1918. 


to  be  paid  on  June  20 ;  income-tax  at  rate  of  5s.  in   the  pound 
will  be  deducted. 

Molsons  Bank,  Montreal. — 2J  per  cent.,  being  at  rate  of  11 
per  cent,  per  annum,  for  cut  rent  quarter,  payable  by  thf 
London  County  Westminster  and  I'arr's  Hank,  41.  I^thbury, 
I'^.C,  on  July  2,  same  as  a  year  ago. 

Mining  Corporation  of  Canada.  Dividend  and  bonus 
amounting  to  18J  cents  per  share  (Ic-s  tax)  for  three  months 
ending  June  30. 

Merchants'  Marine  Insurance  Co. — Interim  2s.  f>d.  per  share, 
free  of  tax,  for  half  year  ending  Junr-  30  ;  dividend  is  payable 
on  July  I. 

Manchester  Dry  Docks. — Interim  los.   per  share,   free  of  tax. 

Mexico  Mines  of  Ei  Oro. — (No.  28)  of  4s.  per  share,  payable 
flee  of  tax,  on  June  27,  same  as  a  year  ago. 

Nippon  Yusen  Kaisha. — 50  per  cent,  for  six  months  ended 
March  31,  same  as  for  previous  half-year. 

.Newcastle  Breweries. — Interim  2J  per  cent,  on  ordinary  shares 
for  half-year  ended  ApriT  30,  to  be  paid  on  July  i,  same  as  a 
year  ago. 

Ropp  Tin. — At  rate  of  75  per  cent.  (3s.  a  share),  le.ss  tax. 
For  1916  25  per  cent. 

Sun  Life  Assurance  Society. — Half-year's  dividend  at  rate  of 
3s.  gd.  per  share,  payable  on  July  i,  free  of  tax.  same  a*  a 
year  ago. 

Trust  and  Loan  Company  of  Canada. — At  rate  of  15  per  cent, 
per  annum  for  half-year  ended  M.irch  31.  For  year  to  March 
31,  1917,   10  per  cent. 

Tandjong  Rubber  Co. — Interim  of  5  per  cent,  (actual)  for 
year  ending  June  30,  1918,  payable  on  June  25.  Tax  will  be 
deducted  at  rate  of  5s.  3d.   in  the  £. 

Trust  Union. — On  ordinary  shares  at  rate  of  7  per  cent,  per 
annum  for  half-year  to  May  15,  making  i>  per  cent,  for  year, 
against  5  per  cent. 

United  River  Plate  Telephone  Co. — Final  5  per  cent,  on 
ordinary  share  capital,  making  8  per  cent,  for  1917,  free  of 
lax,  same  as  for  1916;  forward,  ;Ci7,307,  against  ^£6,990. 

United  Tobacco  Companies. — Interim  5  per  cent.,  free  of 
British   income-tax,  payable  on  June  29. 

Western  Telegraph  Co. — Third  quarterly  inteiim,  3.S.  per 
share,  free  of  tax,  for  year  ending  June  30,  being  at  rate  of 
•6  per  cent,  per  annum,  same  as  a  year  ago 


When  the  War  Will  End  ? 

Absolute  knowledge   I    have  none 

But  my  aunt  says  her  woman's  sister's   sim 

Heard  a   policeman  on  his  beat 

Say  to  a  labourer  in  the   street 

That  he  had  a  letter  just  la.st  week 

Written  in  the  finest  Greek 

From  a  Chinese  coolie  in  Timbuctoo 

Who  said  the  negroes  in  Cuba  knew 

Of  a  coloured  man  in  a  Texas  Town 

Who    got   it   straight   from   a    circus   clown 

That   a  man   in    Klondike    heard    the   news 

From  a  gang  of  South  American  Jews 

About  somebody  in   Borneo 

Who  heard  a  man  who  claimed   to  know 

Of  a  swell  societ}^   female  fake 

Whose   mother-in-law    will   undertake 

To  prove  that  her   seventh  husband's  niece 

Had  stated  in  a  printed  piece 

That   she  has  a  son  who  has  a   friend 

Who  knows  when  the  war   is  going   to  end. 

— From  the  North  China  Herald. 


Owing  to  the  restrictions  placed 
upon  paper  supplies  we  cannot 
provide  newsagents  with  copies  for 
chance  sales.  Would  regular  readers  of 
the  "Investors'  Review,"  therefore, 
kindly  place  an  order  with  their  local 
newsagents  or  subscribe  direct  to  the 
publisher? 


The  Unteachable  Beast. 

It  is  amusing  to  note  the  temper  of  mind  which  .still 
dominates  in  Germany — or,  at  any  rate,  which  is  per- 
mitted to  manifest  itself  there  as  "public  opinion" — and 
a  few  scatterc<J  expressions  of  views  and  bounderisms 
may  be  worth  chronicling.  The  egregious  Herr  Dernburg,  for 
instance,  who  came  into  prominence  soon  after  the  war  began 
ais  a  suborner  and  Prussian  spy  in  the  United  States,  has  betii 
delivering  himself  about  his  particular  idea  of  a  "  league  of 
nations  "  to  be  constituted  after  the  war — of  course,  with  Ger- 
many atop.  He  quite  supports  it,  and  being  a  Jew  has  intel- 
ligence enough  to  comprehend  some  of  its  purposes,  but  he  gives 
it  as  his  opinion  that  the  coming  peace  must  include  as  one 
of  its  most  important  points  "  the  reopening  and  permanent 
keeping  open  of  the  market  and  raw  material  areas  for  the 
Central  Powers,  who  also  for  many  years  past  have  shown  -in 
oversea  bias — in  a  word,  the  freedom  of  the  iieds  must  \x 
secured."  And  does  the  man  imagine  the  Prussians  to  be 
securing  tfiat  freedom  by  endeavouring  to  destroy  their  neigh 
hours  and  by,  in  the  process,  sacrificing  their  own  manhood  by 
the  million,  filling  the  world  with  loathing  the  while?  Appar 
ently  he  thinks  that  the  destruction  of  shipping  by  the  sub- 
marine piracy  will  .secure  liberty  for  the  Central  Powers  to 
trade  as  before  when  the  war  is  over.  Yet  he  must  know  better, 
being  a  Jew.  During  last  year  he  boasts  that  in  ships  and 
cargoes  alone  the  Central  Powers  destroyed  the  equivalent  of 
over  ;^' 1 ,000,000,000  of  property,  and  he  asserts  that  the  scarcity 
of  shipping  will  not  be  made  good  "  even  by  the  re-entry  of 
the  British  and  German  mercantile  marines  "  as  ocean  carriers. 
What  does  the  man  mean  by  "  re-entry  "  ?  The  British  mer- 
cantile marine  has  never  been  out  of  the  .seas;  it  is  supreme 
there  still  in  spite  of  the  hideous  crimes  of  the  German  sub 
marine.  And  as  for  the  German  one,  the  seamen  of  the  world, 
in  their  chivalry  and  comradeship,  will,  he  may  rest  assured. 
see  to  it  that  it  dees  not  get  back  to  roam  the  ocean  and  com- 
pete with  the  rest  of  the  world. 

From  another  point  of  view  we  have  the  vapourings  of 
Admiral  von  Tirpitz,  who  detlares  that  Gennany  .still  lives, 
and  although  he  disclaims  the  desire  to  "dominate 
the  world " — which  seems  to  indicate  that  some  glimmer  of 
sense  may  have  entered  his  head — he  roundly  insists  that  Bel- 
gium must  remain  German,  and  treats  Great  Britain  as  the 
bugbear  enemy  all  in  the  usual  fashion  of  the  demented  and  the 
false  seeming  patriot,  and  man  of  blood  and  iron.  The  Deputy 
of  Elberfeld,  too,  Herr  Bacmeister,  in  the  same  arrogant  strain, 
asserts  that  if  England  remains  equal  to  Germany  in  power. 
England's  mercharit  submarine  might  became  a  weapon  against 
the  naval  submarine,  and  Germany  would  then  be  robbed  in  the 
event  of  a  future  quarrel  of  "  her  last  means  of  picking  Eng- 
land's backbone."  The  raving  creature  is  unable  to  conceive 
any  human  relationship  except  that  of  the  robber  and  the  robbed. 
It  is  war,  war  always  with  such.  Another  Deputy  hailing  from 
Dortmund  declared  that  he  was  pleased  to  think  that  "the 
Lichnowskis  were  no  longer  in  the  first  line  of  German  diplo- 
macy," and  that  tTie  danger  threatening  the  German  people 
' '  would  be  overcome  only  when  the  hand  of  peace  held  out  by 
England  had  been  rejected."  And  that  "  Germans  .should  only 
make  peace  with  England  when  it  suits  them,"  the  bold 
rostrum  buccaneer.  So  it  goes  on — a  babel  of  mad  ravings  a? 
of  creatures  in  the  strait-waistcoat  cell  of  a  madhouse.  And 
away  at  the  front  mankind  is  consumed  in  the  most  abominable 
war  that  ever  afflicted  nations.  And  Germany,  Prussia 
hounded,  labours  with  all  its  remaining  strength  to  obliterate 
itself  for  ever  from  among  the  ranks  of  civilised  nations.  What 
is  to  be  done  with  these  people  when  their  murderous  furies 
have  consumed  them  ?  They  must  be  left  to  the  vengeance  of 
Heaven. 


COMPANY    RESULTS    IN     BRIEF. 


Name  and 

Accounting 

Period. 


Aberdeen  Steam  Trawling 
and  Fishing. ..  .(Apr.) 

Do (Prev.) 

Fortuna  Nitrate  Co.  (Dec.) 

Do Prev 

John  Rowell  &  Son. (Mar.) 

Do Prev. 

Metropolitan  Assn. . .  (Mar.) 

Do Prev 

Newport  -  Abercarn   Black 

Vein  Steam  Coal  Co. 

(Mar.) 

Do Prev. 

Oldfields   (Jan.) 

Do Prev. 

Singleton  and  Cole.,  ([an.) 

Do Prev. 

The  Riverside  Orange  Co. 
(Sept.) 

Do (Prev.) 

Thos.  Brown  &Sons.(Jan.) 

Do.      Prev. 

Wm.  Mcllroy (Feb.) 

Do Prev. 


Gross 

Nett 

Total 
Re- 

Divi- * 

Profit. 

Profit. 

dend. 

serves. 

i 

I 

£ 

% 

— 

29,070 

35,000 

20 

— 

29,000 

30,000 

20 

11,520 

•9,920 

120,000 

— 

67.980 

45,320 

120,000 

10 

82,740 

19,040 

74.540 

15 

45.050 

14,410 

67.640 

10 

27,29c 

7,260 

750 

5 

27,000 

7,260 

750 

5 



36.770 

53.500 

20 

— 

60,330 

53.500 

20 

— 

1,660 

6 

— 

990 

— 

3 

15,460 

14,710 

9,000 

10 

I5.72<^ 

14.950 

7.500 

II 

65,720 

10,820 





64,810 

9.480 

— 

— 

— 

44,180 

114.300 

5 

— 

45.340 

95.200 

5 

— 

31.270 

25.920 

i 

— 

15.167 

20.000 

Carried 
For- 
ward. 

~r 

7.320 

7,420 

3.880 

13,810 

7.940 

7.870 

no 

50 

60,490 
49.590 


3.450 
2,230 


32.960 
18.410 


Loss. 


Jdne  8,    1918. 


^be  Jnvestors'  IRevtew. 


559 


Ansvireps  to  Coprespondents. 


COMPANY  MEETINGS. 


"*.*  A  Koy  to  theso  Answers  will  be  posted  early 
each  week  tor  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  for  six  months,  or 
Ss.  9ii.  for  three  months. 

Deposits  against  future  Queries  may  be  /otfged 
with  the  Publisher. 

H.  J. — They  are  probably  going  higher,  but  you  might  ibegiii 
to  sell. 

Joseph  C. — (i)   Should  be  quite  good,   but  dear  enough.     (2) 
Fair  of  the  kind,  but  do  not  pay  sufficient  to  cover  the  risks. 
Single. — No. 

S.  S.  S. — (i)  Fair  if  bought  at  not  more  than  par.  (2)  Should 
be  all  right  at  current  price.  Busines.s  mnnaged  with  great 
pluck  and  skill.  (3)  Not  so  sure  about  this.  The  Management 
seems  to  have  let  itself  be  elbowed  aside. 

Mons. — Hold  a  little,  as  they  are  likely  to  rise  further.  Vou 
can  then  sell  part,  if  you  do  not  wish  to  clear.  Company  \s 
doing  well. 

J.  R.— Better  left  alone. 

M.  D.  F. — The  bonds  are  quite  good,  but  high.  Sell,  and 
put   the  money   into   National  Bonds. 

East  Ham. — (i)  and  (2)  We  .see  no  reason  to  sell  ;  both  are 
strong  financially,  and  give  a  good  return  even  at  present 
prices.  (3)  Quite  good,  but  fairly  fully  priced.  The  redemption 
date  is  a  long  way  off.  Might  be  .sold.  (4)  Safe,  but  cannot 
rise  appreciably. 

G.  H.  W. — Both  will  probably  improve,  as  they  must  be 
doing  well.     As  an  investment  (2)  seems  the  more  attractive. 

D.  L.  R. — Length  of  life  is  rather  obscure,  but  they  seem 
worth  keeping  for  the    present. 

F.  G.  J. — Having  held  so  long,  we  do  not  think  you  .should 
■^ell   now.     Position    should  improve   .igain  after  the  war. 


What    Balance   Sheets   Tell. 


I 


East.man  Kodak  Co.  (of  Nkw  Jersey). — It  is  not  surprising 
to  find  that  profits  fell  off  last  year,  the  total  being  three 
millions  less  at  $14,540,000,  but  this  was  almost  exactly  offset 
by  the  larger  amount  brought  in.  Nevertheless  the  directors 
cut  down  the  extra  dividends  (in  addition  to  the  regular  10 
per  cent.)  from  60  per  cent,  to  20  per  cent.,  and  add  five 
millions  to  the  amount  carried  forward,  raising  the  total  sur- 
plus to  $26,980,000.  The  information  supplied  is  meagre,  and 
perhaps  the  actual  earnings  were  really  higher  than  in  1916, 
-as  it  is  stated  that  $4,750,000  was  charged  ofi  for  taxes,  while 
nothing  was  said  about  that  item  a  year  ago,  and  we  notice 
that  $4,000,000  has  been  set  aside  as  provision  for  excess  duty 
and  income-tax.  Buildings,  plant,  and  investments  have  in- 
creased four  millions  to  $20,413,000,  and  cash  is  up  two  millions 
at  $12,734,000,  so  the  position  seems  almost  unnecessarily  strong. 
At  the  same  time  the  severe  cut  in  the  dividend  must  be  a  bitter 
disappointment  to  many  of  the  shareholders,  and  we  cannot 
believe  it  is  justified  even  under  war  conditions.' 

Smithfiei.d  and  Argexti.ve  Meat  Co.,  Ltd. — At  first  sight 
it  looks  as  though  the  profits  for  the  year  1917  had  fallen  off,  but 
we  are  not  sure  that  this  is  actually  the  case.  At  any  rate, 
after  providing  for  excess  duty  they  amounted  to  the  hand- 
some sum  of  ;£i2g,7oo,  or  ;^7,ooo  less  than  in  1916.  and  ^f  56, 000 
less  was  brought  in.  A  year  ago,  however,  ^^93,500  had  to  be 
deducted  for  exce.ss  duty  in  respect  of  1915,  and  the  amount 
actually  available  is  ^7,000  up  at  ;^i28,35o.  The  whole  of  the 
capital  of  ^^625, 000  i^  now  paid  up,  and  the  dividend  and 
bonus  of  15  per  cent.,  tax  free,  requires  ;if93,75o,  again.st 
;f48,75o  in  1916,  so  that  after  again  placing  ^20,000  to 
reserves  the  carry  forward  is  ^8,000  lower  at  ^'14,600.  Ex- 
penses of  the  new  issue  in  1916,  amounting  to  ^20,240,  have 
been  written  off  share  premium  account.  Creditors  have  in- 
creased ;f 700, 000  to  ;^i,i6o,ooo,  but  the  bank  overdraft  has 
been  reduced  by  ^50,000  to  £i^o,oao.  Buildings,  plant,  &c., 
are  up  ;^73,ooo  at  ^'321,000,  stores  ;f 370, 000  at  jf 642, 000,  live 
stock  and  products  ^325,o(xi  at  ^^640,000,  and  debtors  ^126,000 
at  ;f357,ooo.  Under  the  circumstances  it  is  not  surprising  that 
it  is  proposed  to  increase  the  capital  by  the  issue  of  half  a 
million  in   7  per  cent,   preference  shares  of   £1    each. 

Brunner  Mond  Dividend. — It  will  be  remembered  that  to- 
wards the  end  of  la.st  year  the  directors  of  this  company  decided 
to  capitalise  the  reserves,  and  a  distribution  was  made  of 
three  new  shares  in  respect  of  every  two  held.  Consequently, 
the  dividend  of  6  per  cent,  (actual)  just  announced  is  equiva- 
lent to  15  per  cent,  on  the  old  capital,  and  brings  the  return 
up  to  the  27^-  per  cent,  which  has  been  paid  for  many  years 
past.  It  would  appear  that  the  profits  were  larger  than  ever 
as,  although  the  carry  forward  is  reduced  by  nearly  ;f  100,000, 
the  reserve  fund  gets  ^^250, 000,  as  against  ;^ic)o,ooo  placed  to 
^suspense   account    a    year    ago 


ROYAL    MAIL    STEAM    PACKET    CO. 

SIR  OWEN  PHILIPPS  ON  THE  GOVERNMENT  AND 
THE    SHIPPING    INDUSTRY. 

FOREIGN   COMPETITION. 

"SOUND  FINANCIAL   POSITION  "  OF  THE  COMPANY. 

The  annual  general  meeting  of  the  proprietors  of  the  Royal 
Mail  Steam  Packet  Co.  was  held  on  Wednesday  a*,  the  City 
Terminus  Hotel,  Cannon  Street,  Sir  Owen  Philipps,  G.C.M.G.j 
M.P.,  the  chairman,  presiding. 

The  Secretary  (Mr.  A.  H.  Bennett)  having  read  the  notice 
calling  tho  meeting  and  the  auditors'  report, 

The  Chairman,  who  was  received  with  cheers,  said  :  Ladies 
and  gentlemen, — I  should  like,  first,  to  express  the  regret  of 
myself  and,  I  am  sure,  of  every  shareholder  in  the  company  for 
the  reason  of  the  ab.sence  of  our  deputy-chainnan,  Mr.  Alfred  S. 
Williams.  I  regret  to  say  that  he  underwent  a  severe  operation 
a  few  days  ago,  and  I  am  sure  it  is  the  wi.sh  of  us  all  that  he 
will  have  a  speedy  and  complete  recovery.  (Hear,  hear.)  The 
outstanding  fact  in  the  seventy-ninth  annual  report  is  that 
since  last  I  addressed  you  our  business  has  come  more  com- 
pletely under  Government  control  for  the  purposes  of  war.  A 
large  proportion  of  our  fleet  is  engaged  in  direct  war  service 
under  the  Admiralty,  as  armed  merchant  cruisers,  transports, 
hospital  .ships,  &c.  The  whole  of  the  remainder  is  now  under 
requisition  by  the  Ministry  of  Shipping.  The  earnings  of  the 
latter  are  for  Government  account,  the  company  only  receiving 
hire-money  at  Blue-book  rates  for  the  use  of  the  ships.  Com- 
parison of  results  with  past  years  would  be  fut'le,  and  my 
customary  review  of  our  position  is  necessarily  circumscribed 
b}'   the   present    abnormal    conditions. 

The  AccoiNTs— The   Dividf.nds. 

The  accounts  set  out  clearly  the  position  of  the  company.  In 
my  view,  these  reveal  a  thoroughly  sound  financial  position,  as 
the  fleet  and  investments  are  worth  at  present  more — and  con- 
siderably more  in  some  cases — than  the  figure  at  wh  ch  they 
stand  in  our  books.  The  size  and  scope  of  the  company's  busi- 
ness may  be  judged  by  the  fact  that  our  ordinary,  preference, 
and  debenture  stock  and  reserves  now  amount  to  over  ten  and 
a-half    millions   sterling. 

During  the  last  20  years  the  average  dividend  paid  by  this 
company  on  its  ordinary  stock  has  been  at  the  rate  of  3^  per 
cent,  per  annum ;  for  the  last  10  years,  the  annual  dividend 
a\eraged  454  per  cent. ;  whilst  for  the  last  four  years  the 
average  dividend  has  been  just  over  5  per  cent.  It  is  only 
for  the  past  two  years  that  we  have  been  able  to  recommend  a 
dividend  at  the  rate  of  7  per  cent,  per  annum,  less  income-tax. 
This  return  upon  capital  invested — considering  the  uncertainties 
inherent  in  the  nature  of  the  .shipping  business— can  hardly  be 
said  to  justify  the  critic  sm  that  has  been  levelled  against  ship- 
owners from  time  to  time  as  to  undue  profits,  although,  as  is 
well  known,  some  tramp  steamers  earned  very  large  profits  before 
they  were  requisitioned  by  the  Government.  In  carrying  on  a 
regular  liner  business,  our  aim  is  to  earn  a  reasonable  and 
steady  return  upon  our  capital,  whilst  endeavouring  to  meet 
the  requirements  of  the  country's  overseas  trade  and  to  maintain 
and  strengthen  our  position  as  one  of  the  great  British  mail 
and   passenger   lines. 

The   Fi.f.et — Standard   Ships. 

The  company  would  have  had  a  considerably  larger  fleet 
now  than  at  the  commencement  of  the  war,  had  it  not  been  for 
the  action  of  the  British  Government  in  deciding  some  time 
ago  that  standard  ships  should  be  built  and  paid  for  by  the 
Government,  instead  of  allowing  the  great  companies  to  take  up 
their  fair  proportion  of  new  tonnage,  and  thus  help  to  relieve 
the  strain  on  the  Treasury  at  a  time  when  we  all  are  urged,  and 
rightly  urged,  to  save  every  pound  to  put  into  National  War 
Bonds  to  enable  the  Empire  to  finance  the  war. 

It  has  been  suggested  that  the  Government  should  take  advan- 
tnge  of  the  present  high  prices  of  vessels  to  sell  some  or  all  of 
the  standard  ships  they  have  recently  built,  or  which  are  in 
course  of  construction  for  their  account,  to  British  shipowners, 
in  order  that  they  mav  make  good  in  some  measure  the  gaps 
which  war  losses' have' caused  in  their  fleets.  I  consider  that 
this  policy  is  well  worthy  "f  serious  consideration  by  the 
Government. 
South  American  Services— -\n  I.mportaxt  Joint  Acqiisition. 

Though  the  stress  of  war  requirements  has  heavily  handi- 
capped us,  we  have  been  able,  throughout  the  past  year,  to 
afford  fairly  regular  opportunities  for  the  conveyance  of  mails, 
passengers,  and  cargo  to  and  from  South  America.  Our  re- 
frigerated vessels  continue  to  render  great  assistance  to  the 
Allied  cause  in  bringing  large  quantities  of  meat  from  the 
.Argentine  for  the  British,  French,  and  Italian  armies,  as  well 
as  for  civilian  needs  at  home.  Argentina  is  also  aiding  this 
country  by  means  of  the  arrangement  I  referred  to  last  year 
whereby  their  entire  .surplus  wheat  crop  has  been  acquired  by 
the  British  Government  on  mutually  advantageous  terms,  in- 
volving the  minimum  of  financial  dislocation. 

The  Royal  Mail  and  its  associated  companies,  in  conjuncton 
with  certain  leading  French  and  Italian  shipping  interests, 
have  acquired  a  large  holding  in  the  Argentine  Navigation  Co. 
(Nicholas  Mihanovich),  Ltd.  This  is  an  important  concern, 
v.'ith  an  extensive  organisation  for  linking  up  the  South  Amen- 


56P 


Zbc  Jnvestois'  IReview. 


June  8,  1918. 


can  ports  by  means  of  coasting  vessels,  river  craft,  tugs, 
lighters,  Sec.  I  believe  the  resultant  closer  co-operation  between 
the  Royal  Mail  and  its  associated  steamship  lines  and  the 
Argentine  Navigation  Co.  will  prove  of  great  mutual  advantage; 
and  after  the  war  I  look  forward  to  the  business  of  the  Argen- 
tine Navigation   Co.   being  largely  developed   and   extended. 

West  Indian  Services. 

Our  regular  mail,  passenger,  and  cargo  services  to  and  from 
West  Indian  ports  have  been  inevitably  curtailed.  There  are 
many  signs,  however,  that  favourable  developments  are  possible 
in  the  commercial  outlook  of  the  liritish  West  Indian  colonies, 
as  the  war  is  bringing  home  to  our  people  the  importance  of 
making  the  Hritish  Kmpire  self-supporting  in  the  matter  of 
sugar  production.  The  fact  that  the  West  Indies  arc  situated 
on  the  new  sea  routes  brought  into  being  by  the  opening  of  the 
Panama  Canal  should  also  tend  to  stimulate  West  Indian  trade. 
It  is  gratifying  to  know  that  the  British  Government  is  alive 
to  these  possibilities,  as  evidenced  by  the  recent  appointment  of 
Mr.  A.  J.  Pavitt  as  British  Trades  Commissioner  to  the  West 
Indies  under  the  new  Foreign  OflSce  and  Board  of  Trade  De- 
partment of  Overseas  Trade,  which  is  ably  presided  over  by 
Sir  Arthur  Steel-Maitland.  As  soon  as  circumstances  permit, 
our  Government  may  possibly  consider  it  advisable  to  go  still 
further  in  the  direction  of  recognising  the  growing  importance 
of  the  British  West  Indian  colonies  by  arranging  to  pay  an 
adequate  subsidy  for  the  maintenance  of  a  suitable  mail  service 
between  this  country  and  the  West  Indies.     (Hear,  hear.) 

The  increasing  close  co-operation  between  Canada  and  the 
British  West  Indies  in  business  matters  has  also  an  important 
bearing  upon  the  commercal  future  of  the  islands.  I  am  glad 
to  say  we  have  been  able  to  maintain  regular,  though  somewhat 
reduced,  facilities  for  mails,  passengers,  and  cargo  between 
Canada  and  West  Indian  ports. 

The   Si)Bii.\piNE   Campaign  :    British  and  German  Losses. 

Early  this  year,  when  the  output  of  new  tonnage  fell  so 
alarmingly,  it  was  at  last  realised  by  the  public  how  gravely 
the  whole  Allied  cause  was  menaced  by  the  continued  sinking 
of  ships,  week  by  week  and  month  by  month,  and  that  the  new 
cargo  vessels  promised  by  British  and  American  statesmen  were 
not  at  that  time  being  constructed  nearly  fast  enough  to  replace 
losses.  An  important  statement  on  this  subject  was  issued  by 
the  Cabinet  as  a  White  Paper,  giving  a  good  deal  of  instruc- 
tive information  as  to  tonnage  losses  and  shipbuilding  output 
since  the  commencement  of  the  war.  From  this  statement  it 
is  apparent  that,  taking  into  account — as  regards  the  United 
Kingdom,  the  Allies,  and  neutrals — our  combined  shipbuilding 
output  and  the  tonnage  of  enemy  ships  captured  and  brought 
into  Allied  service,  on  the  one  side,  and  the  total  war  and 
marine  losses,  on  the  other,  we  have  the  following  results — 
namely,  by  the  end  of  1915,  we  were  just  over  a  million  tons 
to  the  good — that  is  to  say,  one  million  tons  more  than  on 
the  outbreak  of  war.  By  the  end  of  1916  this  increase  had 
dwindled  to  230,000  tons,  and  by  the  end  of  1917 — after  three- 
and-a-half  years  of  war — we  were  over  2,500,000  tons  to  the 
bad. 

At  the  commencement  of  the  war  Germany  owned  5,134,720 
tons  of  mercantile  ships  of  100  tons  and  over.  At  the  present 
time  it  is  estimated  (as  we  know  exactly  what  ships  we  have 
taken  and  what  we  have  sunk)  that  they  own  2,500,000  tons, 
equivalent  to  a  loss  of  half  their  tonnage  during  the  war. 

Shipbuilding  :   The   Xeed   of  a   Greater  Out-turn. 

It  seems  clear  that  we  are  holding  the  submarine  campaign 
in  check  with  increasing  success,  but  we  are  not  yet  within 
measurable  distance  of  its  complete  elimination  as  a  serious 
menace.  It  therefore  behoves  us  to  look  in  the  direction  of  a 
greater  out-turn  from  the  shipbuilding  yards  in  this  country, 
the  United  States  of  America,  and  Canada,  in  order  to  reach 
the  point  where  production  will  balance  losses,  and  we  may 
begin  to  make  good  the  losses  of  the  past  year.  In  addressing 
you  year  by  year  I  have  emphasised  repeatedly  during  the 
war  the  seriousness  of  the  position  of  this  country  as  regards 
the  need  for  more  mercantile  ships.  This  is  now  intensified  by 
the  demands  upon  shipping  to  transport  the  American  Army 
and  its  equipment  across  the  Atlantic,  and  to  feed  and  main- 
tain it  in  France.  By  dint  of  much  perseverance  the  Govern- 
ment have  at  last  been  prevailed  upon  to  publish  fuller  par- 
ticulars concerning  the  tonnage  of  vessels  lost ;  but,  seeing 
that  the  main  object  of  publishing  a  more  complete  statement 
of  the  facts  was  to  administer  a  stimulus  to  the  national  and 
American  effort  for  the  production  of  mercantile  ships,  I  cannot 
help  feeling  that  shorter  intervals  in  issuing  the  tonnage  losses 
would  have  a  very  stimulating  effect  on  the  production  of  new 
vessels.     (Hear,  hear.) 

Our  shipbuilding  yards  are,  after  all,  not  the  least  impor 
lant  of  our  "  fronts,"  and  it  is  well  to  keep  that  fact  in  view. 
In  this  matter  of  shipbuilding,  the  country  is  to  be  congratu- 
lated upon  having  secured  the  services  of  Lord  Pirrie  as  Con- 
troller-General of  Mercantile  Shipbuilding.  I  believe  that  the 
influence  of  his  practical  experience  and  great  energy  has 
already  made  itself  felt  in  the  right  direction,  whilst  I  feel 
certain  that  under  his  guidance  the  next  half-year  will  reveal 
satisfactory  progress  in  the  national  output  of  mercantile  vessels. 
In  this  connection,  I  hope  before  long  to  see  in  operation  a 
system  of  much  greater  publicity  for  the  results  of  shipbuild- 
ing effort,  such  as  I  have  advocated  on  many  occasions  both  in 


I'arliament  and  outside.  I  see  the  idea  has  been  taken  up  in 
America,  where,  by  means  of  graphic  charts,  the  worko:r«  can 
see  at  a  glance  what  each  yard  is  producing.  By  encouraging 
friendly  competition  between  yard  and  yard,  river  and  river, 
district  and  district,  effort  is  stimulated,  and  the  best  and 
speediest  results  will  be  obtained. 

GoVF,RN.MEST   CONTROI.    Oh     SHIPPING. 

It  is  evident  that  at  the  end  of  the  war  there  will  be  f<tr  a 
time  a  great  demand  for  shios,  and  exceedingly  keen  com- 
petition for  their  services.  No  doubt,  a  certain  amount  of 
Government  control  over  shipping  may  be  necessary  for  a 
very  brief  period  in  order  to  ensure  essential  supplies,  but  it 
is  much  to  be  hoped  that,  as  foreshadowed  recently  bv  J>r. 
Addison,  the  Minister  of  Reconstruction,  this  Government  con- 
trol may  be  relaxed  at  the  earliest  possible  moment  after  the 
conclusion  of  peace.  Many  highly  important  overseas  trades 
have  had  to  be  temporarily  abandoned  by  British  shipping 
companies  owing  to  the  exigencies 'of  war.  It  is  essential  in 
the  national  interests  that  these  regular  steamship  services 
should  be  resumed  as  promptly  as  possible  if  we  are  to  hold 
our  own  In  the  future  as  a  maritime  Power.  The  sphere  of 
Government  control  should  be  limited  to  enforcin-*  proper  rules 
and  regulations  in  regard  to  the  construction  of  ships,  their 
•seaworthiness,  equipment,  manning,  He,  and  to  .securing,  as 
far  as  practicable,  fair  play  for  British  shipping  in  competi- 
tion with  foreign  nations — more  especially  where  foreign  ship- 
ping is,  either  directly  or  indirectly.   State-aided. 

St.ate  Ownership  and  Olr   Maritime  Trade. 

My  views  on  the  subject  of  State  ownership  are  by  now  fairly 
well  known,  and  I  do  not  propose  to  enter  fully  into  the  pros 
and  cons  of  the  matter  on  the  present  occasion.  In  my  opinion, 
no  British  industry  is  less  adapted  to  State  ownership  than 
shipping.  It  has  been  created  and  built  up  by  successive 
generations  of  .strenuous  and  enterprising  men,  and  it  is 
diflScult  to  conceive  that  the  world-wide  ramifications  of  our 
maritime  trade  could  possibly  be  upheld  and  expanded  by 
Government  officials,  however  able  and  efficient  in  their  own 
sphere.  At  the  end  of  this  war  the  British  mercantile  marine, 
which  has  proved  its  absolute  indispensability  to  the  nation 
in  these  days  of  peril,  will  be  faced  with  an  unprecedented 
position.  Its  tonnage  has  been  depleted,  and  what  remains 
will  require  considerable  overhaul  after  the  strain  of  running 
under  pressure  of  war  conditions.  British  shipping  companies 
have  had  to  meet  exceedingly  heavy  taxation,  and  all  working 
costs  have  increased  enormously.  On  the  other  hand,  in  amount 
of  tonnage  and  in  financial  resources,  foreign  shipping  will 
be  equipped  as  never  before,  to  contest  our  former  supreni.icy 
as  the  world's  ocean  carrier. 

Internal  industrial  undertakings,  such  as  railways,  coal,  gas. 
and  electrical  companies,  which,   from  their  nature,  are  practi- 
cal monopolies,  may  be  suitable  for   State  or  municipal  owner 
ship.     In  the  case  of  an  industry  so  highly  specialised  as  ship 
ping,  however,  with  such  widespread  ramifications  and  interests 
all  over  the  world,  open  to   universal   competition,   I    am  con- 
vinced that  by  taking  it  out  of  the  hands  of  those  who  have 
won  for  it  the  high  position  it  has  occupied  hitherto,  and  plac 
ing  it  in   the  hands  of  a  Government  Department,  the   nation 
would  be  running  a  grave  risk  of  losing  that  maritime  supre- 
macy which,  whether  in  war  or  peace,  is  essential  to  the  mainten- 
ance of  our  position  as  a  world-Power. 

The   Rov.al   N.wv  and  the   Mercantile   Marine  German  Dis- 
.appointments. 

When  addressing  you  last  year,  at  the  time  when  the  unre- 
stiicted  U-boat  warfare  had  reached  its  zenith,  I  ventured  to 
predict  that,  grave  as  the  position  then  was,  the  British  Navy 
and  its  gallant  fttsoniiel  would  be  equal  to  the  difficult  and 
heavy  task  imposed  upon  them,  and  that  this  campaign  of  ruth- 
less piracy,  on  which  the  enemy  had  based  high  hopes  of  early 
victory,  would  prove  not  least  among  the  disappointments 
suffered  in  this  war  by  the  rulers  and  people  of  C>ermany.  I 
think  1  may  safely  say  that  this  prediction  has  been  fulfilled. 
Both  in  offensive  and  in  defensive  measures,  the  British  Navy 
— nobly  assisted  by  the  Navies  of  our  Allies — has  won  our 
admirat'on  and  gratitude.  It  is  officially  stated  that  since  the- 
commencement  of  this  }-ear  enemy  submarines  are  being  sunk 
faster  than  they  can  be  built.  The  expeditions  against  Zee- 
brugge  and  Ostend  are  thrilling  examples  of  the  courage  and 
daring  of  the  British  sailor.  (Cheers.)  The  Navy  has  been  no 
less  active  in  the  defensive  sphere,  and  the  convoying  of  mer- 
cantile vessels,  in  which  we  are  so  closely  interested,  has  been 
developed  with  increasingly  successful  results. 

In  equal  degree  our  gratitude  and  admiration  are  due  to 
their  "  brothers  in  courage  and  brothers  in  devotion  to  duty," 
as  the  First  Sea  Lord  recently  and  justly  described  the  officers 
and  men  of  the  mercantile  marine.  (Hear,  hear.)  By  their  per- 
sistence and  courage  in  face  of  perils  unknown  in  any  former 
age,  they  have  maintained  our  lines  of  communication  with 
the  fighting  forces  and  preserved  this  country  and  our  Allies 
from   isolation   and  famine.      (Cheers.) 

The   Staff  and  the  War. 

With  few  exceptions,  all  our  men  of  military  age  and  fitness 

are  serving  in  the  Navy  or   Army,   and,   as  mentioned    in   the 

report,  many   have   won   honourable   distinctions,    whilst   some 

have  made  the  supreme  sacrifice  for  their   King  and  Country. 


June  8,   1918. 


Ubc  Jnveetors'  IReview. 


sfii 


Upon  those  who  remain  a  larger  share  o£  work  and  responsi- 
bility has  fallen,  and  the  court  of  directors  desire  once  again 
to  express,  through  me,  their  appreciation  of  the  good  work 
of  the  general  mriuagers  and  of  the  members  of  our  staffs  at 
home  and  abroad  who  are  carrying  on  in  these  difficult  times. 
(Hear,  hear.) 

For  some  years  my  colleagues  and  I  have  devoted  a  good  deal 
of  attention  to  making  provision  for  the  members  of  the  sea 
and  shore  staffs  of  the  Royal  Mail  and  its  associated  companies 
vhen,  after  long  and  faithful  service,  they  reach  the  period  of 
retirement.  With  this  end  in  view  the  company  and  four  of 
its  associated  companies  have  founded  in  recent  years  super- 
annuation associations,  with  funds  vested  in  trustees,  so  as  to 
be  absolutely  secure,  and  managed  by  joint  committees  repre- 
senting directors  and  staff.  I  think  you  may  be  interested  to 
know  that  at  the  present  time  in  these  five  associations  we  have 
a  membership  of  3,856,  which  includes  members  of  office  staffs, 
at  home  and  abroad,  captains,  officers,  engineers,  pursers,  ani 
chief  stewards.  The  total  invested  funds  now  amount  to 
/  863,000,  and  the  total  gross  income  this  year  from  the  invest 
ments  is  estimated  at  ;2^43,ooo.  Some  provision  is  also  made 
for  old  age  in  the  case  of  other  employees  after  periods  of 
long  service,  and  for  their  widows  and  dependents  in  the  event 
of  death.  I  look  forward  within  the  next  few  years,  if  all  goes 
well,  to  increas-ng  this  provision  very  considerably.  Large 
companies  are  not  only,  in  many  cases,  the  best  employers  of 
labour,  but  they  also  make  more  provision  for  their  old  em- 
ployees than  is  often  possible  in  the  case  of  smaller  companies 
or  private  firms.  If  the  public  were  aware  of  what  many  laree 
companies  have  done,  and  are  doing,  for  their  employees,  which 
It  is  not  possible  for  small  companies  to  do,  much  of  the  criticism 
of  large  companies  would,  I  feel  certain,  cease  to  be  made. 

Liverpool  Staff  Dining  Rooms. 
Asthere  are  over  600  members  of  the  office  staffs  in  Liverpool 
of  this  company  and  its  associated  companies,  we  have  arranged, 
in  conjunction  with  the  other  companies,  to  obtain  the  lease  of 
suitable  premises  situated  at  the  top  of  the  Royal  L'ver  Build- 
ing in  Liverpool.  These  will  shortly  be  opened  as  staff  dining 
rooms,  where  the  members  of  our  staff  will  have  the  convenience 
of  a  wholesome  mid-day  meal  at  very  moderate  cost. 

Roy,u,  Mail  Bl'ilding  .it  Buenos  Aires. 
The  large  and  h.andsome  office  building  which' we  have  com- 
pleted at  Buenos  Aires  since  the  war  is  not  only  the  head- 
quarters in  Argentina  of  the  Royal  Mai,  Lamport  and  Holt, 
and  Nelson  Lines,  but  it  has  also  the  honour  to  accommodate 
his  Maiesty's  Minister  to  the  Argentine,  and  his  Majesy's 
Consul-General.  You  will,  therefore.  a?ree  with  me  that  it  has 
been  appropriately  named  the   "  Edificio  Britanico." 

The    Future  :    The   Directoks    Policv. 

Now,  what  of  the  future?  Nothing  is  more  difficult  under 
normal  c  rcumstances  than  intelligently  to  forecast  the  outlook 
for  the  British  shipping  trade,  but  never  in  any  period  in  our 
history  has  it  been  more  difficult  to  do  so  than  now.  Un- 
doubtedly high  freights  will  continue  for  a  time  after  the  war, 
but,  personally,  I  see  no  grounds  to  warrant  what  appears  to 
be  a  very  general  belief,  that  the  conclusion  of  peace  will  be 
followed  by  many  years  of  great  prosperity  for  Brifsh  ship- 
ping. I  can,  however,  assure  you  that,  whatever  the  future 
may  have  in  store,  the  oolicy  of  your  directors  will  continue 
to  be  to  carry  on  this  old-established  company  on  the  same  lines 
as  in  the  past,  and  not  only  to  endeavour  to  meet  all  reasonable 
requirements  both  of  the  travelling  public  and  of  the  merchants 
and  shippers  who  give  us  their  support,  but  to  seek  to  ensure 
that  the  Royal  Mail  shall  be  in  the  future  what  it  has  been  in  the 
past,  and  that  is  one  of  the  great  arteries  of  British  overseas 
trade  and  commerce.     (Cheers.) 

I  now  formally  move  "That  the  report  of  the  directors  and 
the  accounts  and  balance-.-iheet  submitted  to  this  meeting  be 
and  the  same  are  hereby  received  and  adopted,  and  that  a  divi- 
dend of  2%  per  cent.,  less  income-tax  (making,  with  the  interim 
dividend,  c;  per  cent,  for  the  year),  be  and  the  same  is  herebv 
declared  on  the  preference  stock,  and  that  a  dividend  of  'c, 
per  cent.,  less  income-tax  (making,  with  the  interim  dividend. 
7  per  cent,  for  the  year),  be  and  the  same  is  hereby  declared 
on   the   ordinary    stock." 

Sir  Joseph  Savory,  Bt..  seconded  the  motion,  which  was  at 
once  unanimously  agreed  to;  and  the  retiring  directors,  Mr. 
Kdward  Norton,  Mr.  James  Cameron-Head,  and  the  Duke  of 
.-^bercnrn.  and  the  auditors.  Sir  Richard  Pennefather,  C.B.,  and 
Mr.    C.    Lee   Nichols,   F.C.A.,  were   re-elected. 

Mr.  T.  Melville  proposed  a  cordial  Vote  of  thanks  to  the 
chairman,  the  directors,  the  general  managers,  and  the  staff 
ashore  and  afloat.  He  congratulated  the  charman  and  his 
-rolleaeues  on  the  far-sighted  policv  which  had  been  adopted 
by  them,  and  which  had  brought  the  company  to  its  present 
success,  and  remarked  that  they  were  all  extremely  pleased  at 
the  honour  which  had  recently  been  conferred  on  the  chairman 
by  the  King.     (Cheers.) 

Mr.  H.  H.  Matthews  seconded  the  motion,  which  was  carried 
unanimously. 

The  Chairman,  in  acknowledging  the  vote,  said  that  he 
would  convey  it  not  only  to  the  general  maniigers,  but  to  al! 
the  staff,  both  at  sea  and  ashore,  especially  those  at  sea,  who 
would  appreciate,  as  he  did,  the  kindness  of  the  proprietors. 

The  iMOceedings  then  terminated. 


NIRPUZHA  RUBBER  ESTATES 

Au  extraordinary  general  meeting  of  the  Nirpuzha  Rubber 
Estates,  Ltd.,  was  held  on  f'"riday  at  23,  Suffolk  Street,  Pall 
Mall,  S.W.,  Mr.  G.  St.  Lawrence  Mowbray,  chairman  of  the 
company,   presiding. 

Mr.  D.  1*.  Ilartnell,  representing  the  secretaries  (The  Indo- 
Malay  and  Colonial  Agency,  Ltd.),  having  read  the  notice  call- 
ing th-e  meeting, 

The  Chairman  said:  When  I  addressed  you  at  the  annual 
meeting  held  on  December  31,  some  reference  was  made  to 
the  litigation  between  this  company  and  the  vendors  of  the 
Hingra  Estate,  which  had  arisen  out  of  the  extraordinarily 
heavy  expenditure  on  the  property  after  the  date  that  the  pur- 
chase contract  had  been  entered  into  with  them.  Our  efforts  to 
obtain  for  you  what  we  regarded  as  satisfactory  accounts  of 
the  outlay  incurred  proved  fruitless,  and  upon  legal  advice 
we  took  the  only  course,  as  we  were  told,  which  was  likely  to 
compel  the  vendors  to  produce  to  us  proper  vouchers  for  their 
expenditure,  and  evidence  that  the  expenditure  had  l  een  justly 
and  properly  incurred.  It  appeared  that  the  Government  of 
Ceylon  had  required  the  immediate  construction  of  new  coolie 
lines  and  a  hospital  on  the  Hingra  Estate,  and  they  had  cost 
together  about  ;£2,5oo,  while  the  estate  working  expenses  had 
also  much  exceeded  the  estimate.  It  was  admitted  at  the 
trial  of  the  action  that  we  had  not  been  consulted  with  regard 
to  these  matters,  nor  had  we  been  kept  fully  informed  of  them, 
though  we  were  called  upon  to  pay  the  expenditure  in  duo 
course.  The  result  of  the  action  was  to  some  extent  a  fore- 
gone conclusion,  because  an  order  was  made — as  we  knew  it 
would  be— for  the  specific  performance  of  the  contract  and  tlie 
completion  of  the  purchase  of  the  estate,  but  the  judge  in 
making  that  order  went  somewhat  further,  and  referred  the 
question  of  the  disputed  estate  accounts  to  the  decision  of  ;m 
official  referee  of  the  High  Court.  That  gave  us  what  we  had 
always  contended  for — the  fullest  opportunity  of  discussing  the 
different  items  of  expenditure  in  detail,  and  of  contesting  the 
validity  of  any  of  them  if  we  felt  it  necessary  to  do  so.  The 
judge  suggested  at  the  hearing  of  the  action  that  it  was  one 
for  a  settlement.  Efforts  were  made  to  that  end,  but  unfortu- 
nately they  proved  abortive.  Subsequently  further  negotiations 
were  in  progress  for  the  purpose  of  arriving  at  a  basis  of 
settlement  which  would  include  not  only  the  completion  of  the 
purchase  of  the  estates  which  the  Court  had  ordered,  but  a 
settlement  of  the  whole  question  of.  the  disputed  accounts. 
While  those  negotiations  were  going  on  the  Hingra  Company's 
solicitors  presented  a  petition  for  the  compulsory  winding-up 
of  your  company.  A  winding-up  petition  has,  in  the  ordinary 
way,  to  be  advertised  in  the  newspapers,  which  was,  of  course, 
done  in  this  case.  The  consequence  of  the  publication  was  to 
cause  a  very  great  deal  of  anDoyan.;e  to  the  company,  and  it 
also  gave  certain  people  a  chance  to  spread  reports  of  a  very 
unjustifiable  nature  about  the  position  of  the  company,  and 
about  the  character  and  reputation  of  some,  at  any  rate,  of 
your  directors.  Neither  the  petition  itself  nor  the  other  cir- 
cumstances I  have  just  alluded  to,  deterred  us  from  piirsuing  the 
course  which  we,  as  the  custodians  of  your  assets,  it  was  our 
duty  to  do,  and  the  outcome  has  been  that  the  Hingra  Com- 
pany finally  agreed  to  a  settlement  upon  your  ierms,  which 
very  satisfactorily  disposed  of  all  the  points  that  were  in 
dispute  between  us.  They  have  accepted  an  amount 
which  is  very  much  below  their  original  demands,  and 
the  actual  figures,  after  making  the  necessary  allow- 
ances and  adju.stments,  show  that  we  have  effected  a 
saving  for  you  in  round  figures  of  about  ;^4,ooo.  The 
roni.lusion  of  this  litigation  has  placed  us  in  a  position  to 
deal  with  the  Hingra  estate,  and  circumstances  have  enabled 
us  to  carry  into  effect  a  project  which  we  have  always  had  in 
our  minds  since  the  time  when  we  first  entered  into  this  pur- 
chase contract.  It  has  always  seemed  to  us  that  eventually  we 
might  find  the  Nirpuzha  estate  alone  would  become  of  such 
importance  that  the  disposal  of  Hingra  to  another  or  subsidiary 
company  would  be  an  advantageous  course.  We  did  not,  how- 
ever, ant'cipate  that  the  rubber  crops  on  Nirpuzha  estate  would 
increase  as  rapidly  as  the  actual  figures  for  last  year  has  shown. 
Against  an  estimate  of  3.';,ooo  lbs.  of  rubber  for  last  season  the 
actu.-il  yield  was  52,264  lbs.,  and  with  the  enlarged  area  that 
we  have  in  bearing  this  season  we  anticipate  a  crop  of  about 
80,000  lbs.  From  the  Hingra  property  a  crop  is  expected  for 
the  ensuing  season  of  about  70,000  lbs.,  and  bearing  in  niiud 
the  very  serious  difficulties  of  financ'ng  rubber  estates  which 
now  prevails,  it  became  evident  that  the  two  estates  would  be 
in  a  much  stronger  financial  position  by  the  adoption  of  such 
a  proposal  as  we  are  placing  before  you  to-day  for  the  sale  of  the 
Hingra  property  to  the  Lafayette  Company.  The  Nirpuzha 
Company,  after  completing  the  purchase  of  the  Hingra  estate, 
would  possess  two  properfes.  They  are  both  producing  large 
crops;  they  are  both  yielding  a  profit.  The  effect  of  selling 
the  Hingra  estate  will  be  that  we  shall  Kf't  back  our  ca.sh  ex- 
penditure in  connection  with  it,  and  shall  have  about  ;f  12,000 
in  hand  available  for  working  and  developing  Nirpuzha  alone, 
which  should  enable  us  to  extend  the  planted  area  to  at  least 
1.600  acres,  which  is  more  than  the  oresent  planted  acreage  of 
Nirpuzha  and  Hingra  comb'ned.  In  addition  we  shall  hold 
shares  for  /^vooo  in  the  Lafayette  Company,  and  that  com- 
pany will  have  ample  funds  for  carrying  on  and  increasing  the 
planted  area  of  the  Ceylon  Estate.  If  in  the  future  we  decide 
to  sell  part  of  that  holding  and  to  utilise  the  proceeds  in  further 
planting  operations  on  Nirpuzha,  where  we  have  a  very  large 
reserve  of  .some  3,000  acres  of  land  at  present,  it  is  possible  that 
we    could   extend  our  planted    area  to   considerably  over   2.000 


56a 


^be  Jnvestots'  IRevtew. 


JuNii  8,   iyj8. 


acres,  and  the  additional  area  brought  into  cultivation  would 
naturally  in  course  of  time  mean  a  considerable  reduction  in 
the  cost  of  producing  our  rubber.  I  propose  ;  "That  the  con- 
tract for  the  sale  of  the  Ilingra  Estate  produced  at  this  meeting 
oe,  and  the  same  is  hereby,  ratified  and  confirmed." 

Mr.    Norton-Dawson    seconded    the    resolution,     and    it    was 
carried  unanimously. 


DE  TREY  AND   CO. 

The  sixth  annual  general  meeting  of  De  Trey  and  Co., 
Ltd.,  was  held  on  Tuesday  at  the  offices,  13  and  14,  Denman 
Street,  Piccadilly  Circus,  Mr.  C.  De  Trey  (chairman  and 
managing  director)  presiding. 

The  Secretary  (Mr.  George  Dawson)  having  read  the  notice 
convening  the  meeting  and  the  certificate  of  the  auditors. 

The  Chairman  moved  the  adoption  of  the  report.  Dealing 
with  the  accounts,  he  said  that  with  reference  to  the  losses 
arising  out  of  the  war,  every  item  in  the  company's  assets 
about  which  there  could  be  any  doubt  had  beun  written  off. 
With  the  addition  of  the  amount  for  the  year  under  review, 
they  would  have  transferred  to  various  reserve  accounts  out  of 
the  profit  the  sum  of  ^^i  17,000  in  six  years  They  had  to  con- 
gratulate themselves  on  their  invesfnents  in  the  Dentists' 
bupply  Co.,  the  dividend  from  which  had  substantially  in- 
creased their  profit  for  the  year ;  the  same  might  be  said  of  all 
their  other  investments.  The  directors  trustea  that  this  happy 
state  of  affairs  would  continue,  and  thus  mitigate  the  export 
trade  outlook,  which  was  at  present  somewhat  uncertain,  it 
was  a  pleasure  to  be  able  to  recommend  the  shareholders  to 
declare  a  dividend  of  10  per  cent.,  together  with  a  bonus  of 
IS.  per  share,  on  the  ordinary  shares.  It  was  well,  however,  to 
sound  a  note  of  warning  as  to  the  future.  The  directors  had 
purposely  made  a  larger  distribution  in  the  form  of  a  bonus, 
because  10  per  cent,  was  the  rate  of  dividend  at  which  they 
had  always  aimed,  and  which  they  would  do  their  best  to  main- 
tain. Including  the  present  distribution,  the  ordinary  shares 
had  received  an  average  of  about  10  per  cent  per  annum  since 
the  formation  of  the  company.  Up  to  the  present  they  had  been 
able  to  maintain  and  even  increase  the  turnover  and  the  profit 
even  in  spite  of  great  difficulties.  Of  late  these  difficulties  had 
been  growing.  The  company's  business  was  not  confined  to 
Great  Britain  alone,  their 'export  trade  being  accountable  for 
a  large  part  of  their  turnover,  and  difficukies  of  shipping, 
regulations,  and  restrictions  of  every  description,  and  short- 
ness of  labour,  had  all  contributed  to  hamper  their  enterprise  in 
some  measure.  Their  progress  during  the  current  year  would 
depend  in  the  main  on  the  manner  in  which  difficulties  might 
be  overcome,  and  on  the  extent  to  which  facilities  to  export 
facilities  would  be  liberally  afforded  to  them,  as  any  reduction 
of  their  trade  with  neutrals  would  only  have  the  effect  of  allow- 
ing the  enemy  to  benefit  to  that  extent  by  the  substitution  of 
his  goods.  The  dental  industry,  in  Germany  in  particular, 
was  exceptionally  active  in  neutral  markets  at  the  present 
moment,  and  it  would  be  a  great  pity  if,  through  our  inability 
to  ship  the  goods,  we  were  to  lose  our  hold  on  markets  which 
had  always  shown  a  distinct  preference  for  British  and 
American  goods.  As  a  matter  of  fact,  the  restrictions  which 
war  conditions  had  brought  about  had  been  the  cause  of  the 
cancellation  of  important  orders  from  old  customers  in  neutral 
countries,  who  hitherto  would  not  have  looked  at  German 
goods,  but,  through  force  of  circumstances,  were  now  com- 
peUed  to  do  so.  The  enemy  had  access  to  the  raw  materials 
so  that  they  were  able  to  manufacture  to-day  the  most  important 
dental  lines  just  as  well  as  before  the  war,  and  if  this  country 
lost  the  neutral  trade  now,  it  would  be  very  difficult  to  re- 
capture It.  The  home  and  allied  trade  had  been  quite  satisfac- 
tory, owing  to  the  gradually  increasing  knowledge  on  the  part 
of  the  general  public  of  the  advantages  and  facilities  of  compe- 
tent dentistry  and  to  military  requirements.  Hundreds  of 
thousands  of  soldiers  were  to-day  benefiting  from  dental  treat- 
ment, and  the  relief  afforded  would  not  be  forgotten  when  they 
returned  to  civil  life.  For  the  first  five  months  of  the  current 
year  the  company's  trade  had  been  satisfactory. 

Mr.  E.  J.  M.  Clapham  .seconded  the  resolution,  which  was 
adopted  unanimously,   without  discussion. 

INVESTMENT   TRUST    CORPORATION. 

The  thirtieth  annual  general  meeting  of  the  shareholders  of  the 
Investment  Trust  Corporation,  Ltd.,  was  held,  on  Thursday,  at 
the  offices,  Gresham  House,  Old  Broad  Street,  under  the  presi- 
dency of  Mr.  Robert  Fleming,  the  chairman  of  the  corporation. 

The  Secretary  (Mr.  Hildred  Carlisle)  having  read  the  notice 
convening  the  meeting  and  the  auditors'  report, 

The  Chairman  said  :  The  year  now  reported  on  is  one  during 
which  this  terrible  war  has  continued  its  devastating  course. 
1  hat  course  has  two  principal  effects  in  the  case  of  our  company. 
On  the  one  hand,  through  war  pressure  here  and  there  our 
revenue  has  fallen  off,  our  opportunities  for  making  profits 
from  new  business  are  also  much  reduced,  and  through  large 
investments  in  our  Government  Loans  our  current  revenue  is 
•reduced  also;  on  the  other  hand,  we  continue  to  witness  from 
the  pressure  of  Government  borowings  a  general  decline  in  the 
price  of  securities.  In  our  case  that  decline  is  accentuated 
through  the  largeness  of  our  American  holdings,  which  have 
fallen  greatly  in  market  price  through  United  States  Govern- 
ment borrowings.  As  I  said  a  v-ear  ago,  our  investment  of 
/i, 000,000  in  Government  bonds,  representing  21;  per  cent,  more 
than  our  total  ordinary  capital,  was  bound  to  affect  our  revenue 


lur  the  year  now  under  report,  and  that  is  the  main  cause  of  the 
somewhat  smaller  revenue  of  the  present  year.  In  addition 
to  this  investment  in  Government  bonds,  we  have  deposited 
«ith  the  Treasury  securities  of  the  face  value  of  $5,652,300  and 
^104,751,  so  that  we  really  have  in  the  hands  of  the  Government 
more  than  the  whole  ;^2,ooo,ooo  preferred  and  deferred  capital 
of  the  company.  United  States  taxation  has  so  far  not  hit  us 
hard,  but  I  see  the  President's  (xjlicy  is  that  more  of  the  cost 
of  the  war  must  be  borne  by  taxation.  This  may  affect  us,  but 
it  is  sound  policy,  and  will  place  the  United  States  in  a  position 
to  resume  normal  taxation  sooner  than  any  other  belligerent. 
The  realisations  of  securities  during  the  year  have  resulted  in  a 
iiett  profit  of  £22,6^^,  which  we  have  applied  in  reduction  of  the 
aggregate  value  of  our  holdings  under  the  heading  of  "  Con- 
tingent Fund."  Heretofore  it  has  bc-en  our  practice  to  apply 
such  profits  in  reducing  the  book  cost  of  specific  securities. 
Such  application  may  in  the  ultimate  result  prove  to  have  been 
uncalled  for — that,  indeed,  in  the  past  has  proved  to  be 
the  case  in  several  instances — and  so  we  have  decided 
rather  to  form  this  contingent  fund,  which  can  be 
added  to  from  profits  or  reduced  should  any  capital 
loss  occur  without  disturbing  the  book  cost  of  any  one 
security  until  such  security  is  finally  disposed  of.  What  may 
happen  financially  if  this  war  goes  on  indefinitely  it  is,  of 
course,  impossible  to  predict.  Meantime,  in  view  of  the  com- 
parative steadiness  of  our  revenue  in  the  past  three  trying  years, 
the  calculation  we  usually  make  for  the  ensuing  year  is  prob- 
ably fairly  reliable,  and  that  estimate  shows  that  subject  to 
conditions  to  which  I  have  referred  there  should  be  as  great  a 
revenue  available  for  dividend  as  there  is  for  the  year  now 
under    report. 

Mr.  Henry  Augustus  Vernet  seconded  the  motion,  which  was 
unanimously  agreed  to. 


BRITISH  BANK  OF  NORTHERN  COMMERCE- 

The  sixth  annual  meeting  of  the  shareholders  of  the  British 
liank  of  Northern  Commerce,  Ltd.,  was  held  on  Wednesday 
at  41,  43,  47,  Bishopsgate,  E.C.,  Mr.  U.  Uenaixson,  the  vice, 
chairman,  presiding. 

The  Chairman  said :  — The  businese  of  our  bank  continues  to 
show  steady  and  very  satisfactory  expansion,  as  you  will  see 
from  a  comparison  of  the  figures  now  and  a  year  ago.  Our 
paid-up  capital  and  reserve  remain  as  ibeiore — a  total  of 
^1,125,000.  Current  deposit  and  other  accounts  show  the  large 
total  of  ^22, 754, 517,  as  against  ;f9, 408,026  a  year  ago.  This  is 
a  very  remarkable  growth  and  undoubtedly  a  proof  of  the  confi- 
dence reposed  in  our  institution.  The  bulk  of  this  money 
continues  to  ibe  represented  by  balances  held  here  for  our 
Scandinavian  clients,  and  as  long  us  the  war  Usts  and  ex- 
changes continue  adverse  to  this  country,  such  deposits  are 
more  likely  to  grow  than  to  diminish.  The  number  of  our 
clients  has  also  increased  very  largely  during  the  year.  We 
have  always  to  bear  in  mind  the  probability  that  these  large 
foreign  balances  will  be  much  reduced  when  normal  times 
again  permit  neutrals  to  trade  freely— hence  it  is  incumbent 
on  us  to  keep  the  bulk  of  our  assets  as  liquid  as  possible — but, 
on  the  other  hand,  the  large  number  of  our  active  accounts 
are  a  guarantee  that  we  shall  always  retain  a  large  proportion 
of  such  balances  as  an  inevitable  result  of  a.  growing  and  active 
business.  Our  general  banking  bueiness,  on  the  other  hand,  as 
represented  by  collections,  acceptances,  and  general  advances, 
shows  no  such  expansion — in  fact  the  opposite,  but  this  was 
inevitable  in  view  of  the  restrictions  caused  by  the  war  on 
neutral  trade.  The  Scandinavian  countries  suffer  more  in 
this  respect  than  any  other  neu'trals,  except  perhaps  Holland. 
And  we  are  further  suffering  from  the  collapse  of  trade  with 
Russia.  We  had  a  good  and  rapidly  growing  business  with  that 
country.  As  illustrating  the  foregoing  remal'ks,  jou  wUl  notice 
that  our  acceptances  have  shrunk  to  only  ;^6b,424,  as  against 
^^196,000  last  year  and  ;^574,ooo  the  jear  before,  when  our 
business  had  not  reached  anything  like  its  present  importance. 
We  are  therefore  justified  in  looking  forward  to  a  great  ex- 
pansion of  this  item  in  years  of  peace.  Our  guarantees — 
^822,451 — are  in  every  case  supported  by  counter  guarantees  of 
first-class  banks  abroad.  If  you  will  now  turn  to  the  assets 
side,  you  will  first  notice  that  our  cash  in  hand  i\nd  money 
at  call  or  at  short  notice  totals  ;f9,o38,528.  We  hold,  further, 
in  our  portfolio,  bills — mostly  British  Treasury  bills— to  an 
amount  of  ;^I2,203,323,  making  a  total  of  over  ;i2i,ooo,ooo  in 
absolutely  liquid  form.  Our  investments  are  ;^i, 316,505, 
against  ^482, 277  the  previous  year  ;  the  increase  is  represented 
entirely  by  British  Government  securities.  Loans  and  advances 
are  ;fi.3yS)057,  a  small  increase.  The  profit  and  loss  account 
shows  a  net  profit  of  ;^74.463,  arrived  at  after  payment  of  all 
expenses,  making  provision  for  rebate  on  bills,  b.-.d  and  doubt- 
ful debts,  and  depreciation  on  investments  and  foreign  cur- 
rency. We  trust  that  you  will  agree  with  us  that  this  result 
can  be  looked  upon  as  s.^tisfa^tory. 

Mr.  H.  Hunter  seconded  the  resolution,  which  was  carried 
unanimously. 


We  are  glad  to  see  that  the  -Vllies  have  again  intimated  their 
intention  to  secure  the  establishment  of  an  independent  Poland. 
If  may  seem  that  the  moment  is  not  particularly  well  chosen  to 
reiterate  that  intention,  but  that  is  a  mistake.  The  more  Poland 
is  encouraged  to  hope  for  effective  assistance  in  re-establishing 
her  independence,  the  more  will  the  action  of  the  Poles  tcn.l 
to  paralyse  the  German  intrigues  within  Russia  and  to  en 
courage  the  Russians  theniselve?  to  resist. 


JuNii  8,    1918. 


tTbe  Jnveetots'  IReview. 


563 


THE    SUEZ    CANAL. 

(Compagnie    Universelle   du    Canal  Maritime    de    Suez.) 


I 


In  their  report  to  the  shareholders  at  the  annual  meeting  of 
the  Suez  Canal  Co.,  in  Paris,  the  Council  of  Administration  ob- 
serve that  the  war  has  borne  more  heavily  on  the  activity  of 
the  Canal  in  191 7  than  in  the  preceding  year.  Already  a  year  ago 
they  say  we  had  indicated  to  you  the  new  and  profound  depression 
which  the  submarine  war  a  outrance  inflicted  on  our  traffic. 
The  rapidity  of  this  decline  was  happily  somewhat  attenuated 
during  the  final  month  of  last  year.  For  a  moment  we  feared 
we  should  have  to  tell  you  of  results  still  less  satisfactory  than 
those  we  are  now  able  to  present  to  you,  but  in  spite  of  this 
amelioration  of  our  first  forecasts,  we  still  have  to  record  a 
diminution  of  nearly  4,000,000  tons,  or  exactly  3,956,429  tons, 
in  the  traffic  of  the  Canal,  which  attained  a  total  of  only 
8,369,000  tons  nett. 

The  increases  in  the  tariff  commenced  in  1917  have  to  a 
certain  extent  compensated  the  effects  of  the  decline  in  our 
traffic.  We  may  remind  you  that  the  navigation  toll,  which 
was  raised  by  i  fr.  during  the  year  1916,  has  been  again  raised 
by  1.25  fr.  in  191 7.  in  two  instalments.  A  first  advance 
of  50  centimes  came  into  force  from  January  i.  and  the  second, 
the  more  important  since  it  amounted  to  75  centimes,  was  put 
in  operation  on  July  i.  In  all,  therefore,  the  increase  is 
2.25  fr.,  which  has  raised  the  transit  dues  to  8.50  fr.,  or  an 
augmentation  of  36  per  cent,  on  the  pre-war  rate. 

These  surtaxes  in  all  have  produced  ^^626, 500  of  supple- 
mentary receipts  for  1917,  but  that  still  leaves  a  diminution  of 
;f6oo,ooo  in  the  total  income  compared  with  1916. 

In  the  matter  of  raising  the  dues  the  Council  has  not  confined 
itself  to  the  measures  just  mentioned.  It  also  decided  \o 
suppress  the  special  tariff  by  which  ships  in  ballast  have 
benefited  since  1S84.  The  reasons  which  had  prompted  the 
granting  of  this  advantage  at  the  time  no  longer  exist.  The 
war  has  swept  them  away,  and  the  withdrawal  of  this  rebate, 
which  was  not  less  than  2.50  fr.  per  ton,  has  taken  effect  from 
January  i  last.  It  will  have  a  marked  influence  on  the  re- 
ceipts of  the  current  year. 

As  the  shareholders  know,  in  the  proposals  regarding  the 
dividend,  the  Council  always  take  careful  account  of  the  results 
shown  by  the  current  year's  traffic.  Now  it  is  satisfactory  to  be 
able  to  say  that  there  is  at  present  a  sensible  amelioration  in  our 
receipts.  It  would,  however,  be  rash  to  rely  on  a  proportionate 
increase  continuing  to  the  end  of  the  year.  More  than  ever 
prudence  dictates  that  we  should  not  discount  the  immediate 
future,  so  the  Council  limit  themselves  to  proposing  a  dividend 
based  on  the  results  of  1917,  fortified  by  the  balance  brought 
forward  from  1916.  Thus  a  gross  distribution  of  77.108  fr., 
or    65   fr.    nett,    is  recommended. 

We  maintain  our  unshakable  confidence  in  the  more  distant 
future,  which  should  not  only  bring  back  your  revenue  to  pre- 
war figures,  but  even  give  you  adequate  compensations  for  the 
sacrifices  that   events   at  present  impose  upon  you. 

FINANCE    AND    OEHERAL    INVENTORY. 

The  total  receipts  for  1917  were  ;,f2, 880,760,  and  showed  a 
diminution  of  ;ir68i,oio.  The  diminution  of  ^^656,320  ascribable 
to  transit  receipts  represents  the  greater  part  of  this  difference, 
and  most  of  the  balance  is  due  to  a  falling  off  in  the  profit  on 
exchange. 

Expenses  totalled  ;^i, 485,952,  and  showed  an  increase  of 
;^'43>324  °"  the  figures  of  the  previous  year.  The  increase 
arose  almost  exclusively  from  the  growth  of  general  charges, 
which  were  ;^i36,88o,  nearly  all  the  consequence  of  loans  con- 
tracted by  us  in  igi6,  and  explained  in  our  last  report.  Out- 
side these  general  charges  the  increase  in  our  expenses  does 
not  exceed  ^6,440  on  those  of  1916.  This  is  the  actual  amount 
by  which  our  working  expenses  have  grown,  and  such  a  result,' 
obtained  in  spite  of  the  formidable  rise  in  the  prices  of  all 
materials,  has  only  been  attained  at  the  price  of  the  exercise  of 
a  very  energetic  economy  on  the  part  of  all  the  services,  and  it 
is  fitting  that  we  should  commend  and  emphasise  their  special 
vigilance.  The  suppression  in  our  accounts  of  all  assignments 
to  amortisation  funds  has  reduced  to  the  extent  of  ^40,000  the 
total  of  working  expenses,  and  the  absence  of  any  new  additions, 
as  also  of  all  important  writings  off  in  our  inventory,  joined  to 
the  good  condition  of  our  stocks  and  material,  amply  •  justifV 
this  measure.  .     :\\ 

As  regards  the  general  inventory,  the  cost  price  of  the  Canal 
stands  ip  the  books  at  ;^28,q25,28o,  and  shows  an  increase  of 
•^437'54o  on  the  figure  of  December  31,  1916.  This  increase 
represents  the  expenses  and  accessory  charges  which  have  been 
debited  during  the  year  to  the  account  of  works  of  ameliora- 
tion. The  total  value  of  the  assets,  fixed  and  mobile,  is 
/3>93i.863,  and  shows  an  increase  of  ^^81,220  on  the  yeat. 
For  the  most  part  this  increase  is  a  consequence  of  the  higherr 
value  of  our  various  stores,  resulting  from  the  general  rise  iii 
prices.  The  disposable  or  realisable  assets,  which  at  Decem- 
ber 31,  1916,  totalled  ;,f5, 773,000,  were  at  December  31  last 
';f4.So2,7io,  a  sum  which  includes  £\,i^-],yi<,  the  capital  value 
of  French  5  per  Cent.  Rentes  held  by  the  "company.  Sinking 
funds  at  December  31  last  amounted  to  ^^3,097, 336,  of  an  in- 
crease of  /5i,2oo,  and  the  insurance  and  accident  funds,  the 
statutory  and  extraordinary  reserves  remain  respectively  ;(s 
before  at  ^^72,882,  ;^i,62o,73i,  and  /26o,ooo.  As  already  stated, 
the  balance  left  to  carry  forward  is  £\yj,<y^.  '        j 


TR&NBIT  AND  NAVIOATION. 

Last  year  2,353  ships  traversed  the  Canal,  representing  a 
total  nett  tonnage  of  8,368,918  tons.  Compared  with  1916,  this 
shows  a  diminution  of  757  transits,  and  3,965,429  tons,  or  32.10 
per  cent.  In  comparison  with  1913,  the  last  normal  year,  the 
diminution  is  2,732  transits  and  11,664,966  tons,  or  58.23  per 
cent.,  but  if  we  eliminate  from  the  results  of  1913  the  portion 
belonging  to  enemy  nations,  we  find  that  in  the  flags  now  using 
the  Canal  the  traffic  shows  a  diminution  of  only  47.01  per  cent. 
During  the  year  1917  the  special  movement  through  the 
Canal  of  Government  ships  and  of  ships  freighted,  and  whose 
dues  have  been  paid,  by  the  Governments,  has  risen  to  1,402, 
representing  4,607,279  tons.  This  consequently  forms  more  than 
half  the  total  traffic  of  the  year,  or  exactly  55.05  per  cent. 

In  jgi6  State-owned  or  controlled  navigation  comprised 
33693,763  tons,  or  29.97  per  cent,  of  the  total  transits  of  the 
year.  This  special  portion  of  the  traffic  consequently  grows 
more  and  more  considerable  every  year,  both  absolutely  and 
relatively.  That  is  due  to  the  fact  that  Government-controlled 
commercial  traffic  more  and  more  takes  the  place  of  free.  While 
before  the  war  commercial  navigation  was  absolutely  distinct 
from  State  navigation,  that  is  no  longer  the  case.  It  is  there- 
fore no  longer  possible  to  state  with  the  former  precision  what 
is  the  portion  of  the  Canal  traffic  assignable  to  sources  purely 
commercial. 

The  nett  average  tonnage  of  vessels  passing  the  Canal  last 
year  was  3,557  tons,  a  diminution  of  about  400  tons  on  1916. 
There  is  nothing  to  be  surprised  at  in  that  fact.  In  the  present 
extreme  need  of  tonnage,  every  possible  resource  is  called  into 
use,  and  many  small  ships  which  were  formerly  of  small  profit 
value  for  long  voyages  are  now  employed  equally  with  the 
large.  It  is  even  found  that  in  the  regions  infested  by  suto- 
marines  small  vessels,  less  easily  hit,  are  often  preferred  to 
large. 

The  diminution  in  the  number  of  large  ships  signifies  a  de- 
crease in  the  ships  of  great  draught,  and  only  one  vessel  tra- 
versed the  Canal  in  1917  drawing  the  authorised  maximum  of 
■55J  feet,  while  in  1913  the  numiber  of  passages  made  by  ships 
drawing  about  32  feet,  that  is  to  say  of  ships  taking  advan- 
tage of  the  increases  in  depth  accorded  in  recent  years,  wa? 
about  5  per  cent,  of  the  total.  Last  year  the  proportion  was 
only  r.6  per  cent. 

The  mean  duration  of  the  transit  has  fallen  from  19  hours 
12  minutes  In  1916,  to  18  hours  and  10  minutes  in  1917,  but  it 
still  remains  much  longer  than  it  was  before  the  war,  when  it 
scarcely  exceeded  16  hours,  but  the  present  relatively  high 
figure  is  always  due  to  stoppages  imposed  by  the  naval  and 
military  authorities, 

WORKS. 

The  high  price  of  materials,  notably  coal,  more  than  ever 
imperilled  the  management  of  the  Council  to  reduce  the  works 
undertaken  to  the  utmost  possible  extent,  and  the  comures- 
sion  exercised  had  only  for  limit  the  maintenance  of  the  Canal 
in  good  condition  and  the  best  possible  employment  of  both 
personnel  and  materials.  So  for  1917  the  total  cost  of  the 
dredgings  and  embankments,  whether  for  the  maintenance  or 
improvement  of  the  Canal,  has  again  been  reduced  by  8  per 
cent,  compared  with  iqi6.  Compared  with  1914,  the  diminu- 
tion is  57  per  cent.  This  enormous  reduction  has  been  secured 
without  compromising  either  the  present  or  the  future.  The 
company  continues  to  benefit  by  the  considerable  improvements 
pffected  in  the  days  of  prosperity.  We  estimate  that  at  the  prices 
then  ruling  the  dredgings  of  the  past  year  would  cost  five  or  six 
times  as  much  as  before  the  war,  yet  the  price  of  coal  had  not 
risen  to  £.?>  per  ton.  It  now  exceeds  £12.  These  figures  give 
some  idea  of  the  enormous  economies  which  the  wise  policy 
followed  in  the  past  in  consenting  alwavs  at  suitable  times  to 
large  outLiys  for  future  benefit  have  secured  for  us. 

THE  GENERAL  SI^UITTON. 

It  would  be  vain  to  attempt  to  forecast  the  immediate  traffic 
future  of  the  Canal.  It  depends  on  too  many  elements  which 
are  at  present  involved  in  great  uncertainty.  We  therefore 
confine  ourselves  to  pointing  out  that  the  movement  of  the  first 
months  of  1918  is  superior  to  that  of  the  corresponding  peripd 
, of,  last  year.  Some  indications  seem  to  presaee  the  gradual 
'reiiirn  to  the  Canal  of  ships  which  the  submarine  menace  had  ■' 
driven  away.  Have  we,  then,  known  the  worst,  and  after  tiie 
decline,  more  and  more  accentuated,  which  the  first  years  of 
the  war  have  caused,  are  we  at  the  beginning  of  a  veritable 
recovery  in  the  traffic?  If  we  cannot  affirm  it  to  be  so,  at  least 
it  is  permitted  to  hope.  Our  confidence,  we  rejpeat,  rests 
absolutely  in  the  future  which  will  b^  our»-;.J[rom,  iliendaJ! 'sviljsn 
peace  has  been  attained.  ,]V^  '    ;  ,7\   rpil  j  .?.::jj.,!.'i 

Sundrv  changes  in  the  persomiel^o^.^e  Canal  are  notified, 
and  mention  is  made  of  the  loss  by  death  of  several  coHeajrues, 
viz.,  one  of  the  English  directors,  Mr.  Hughes,  and  two  of  the 
vice-presidents,  Messrs.  J.  Charles-Roux  and  Voisin  Bey.  The 
new  French  members  elected  are  Messrs.  Paul  Cambon,  the 
well-known  and  much  esteemed  French  Ambassador  in  London, 
Count  Naleche,  of  the  Journal  des  Dibats ,  and  M.  Eu?*tie 
Motte,  a  name  revered  in  Northern  France.  Four  rnembers 
whose  terra  had  expired  came  up  for  re-election,  viz.,  Sir 
efWilliam  Garstin,  the  Right  Hon.  Lord,  fniiihcarpeti  iS&.t-ARdre 
<«l*bon,  and  Count  Charles  de  LessAps, '  ■'•■'^r^l^ ..I^B^"^ 

•      ■  i,  '..  :    .  aillaoM  ' 


iH    Moreayul  shF  )o  loisnqoi'l  aril  loi  ,.0.W  .nobnoj  .yswajniX  ,1931(3  'saulioq  ..arJ  .zaaal  aTK3K»jD' .t2  sd)  xi 
.»»««  18  MUll— .«  .O.W  ,fcn«l2  ,139118  illoho/.  ,».!:joH  iWna/.  .Jioi!iiaio«S[  ihT  vd 


bsiaiif 


5*4 


Ube  investors  iReview* 


June  8,  1918. 


INDUN  RAILWAYS. 


UONTHLY    STATEMENTS. 


GROSS  TKATFIC  FOR  WEKK. 

0R08S  TtArriC  TO  DAtI 

Naub. 

Week 
ending 

Amount 

In.  or  dee 

on  last 

»ear. 

<n 

Amount 

In.  or  dec 
on  last 
year. 

Assam  Bengal 

Bars! 

Bengal  &N.-W.     .. 
Bengal  Nagpor 
Bombay,  Baroda  .. 
Burma 

Delhi  Umballa       .. 
East  Indian..        .. 
Gl.  Indian  Penln.  .. 
Luoknow-Bareilly., 
Madras      and       S. 

Mahratta  .. 
NUam'sGd.  (Broad) 

,,        ,1     (Mstre) 
Robilkund  and 

Kumaon  .. 
South  Indian 

Mar.  31 

II       9 

..     31 

.,     23 

May    25 

Mar.  51 

May   25 

,.     23 

1.     25 

Mar.  31 

..     31 

:;  l\ 

n        3' 

..       3' 

Rs. 

i.77.9°6 

lO.JOO 

4.93.360 
12,35,000 
17,15,000 
6,32,276 
76,900 
26,26,000 
24.53.700 
84.342 

12,50,000 
3.43.6S3 
1,59,000 

57,260 
8.59.368 

Rs. 

+     37,380 

—  6,400 

—  i,8»,oi6 
+  55.000 
+  27,000 
+      56.316 

—  1,209 
+  1,07,000 

+  2,16,000 

4-     >4.733 

—  ".435 
+  100,278 
+     39.473 

4-        8,486 

—  1.148 

I 

+ 
t 
I 
J 
t 

: 
t 
1 

t 
t 
t 

t 

Rs. 

37,48.'2i 

7.78.700 

1,09,42,272 

5,46,00,155 

1,40,99,000 

2,22,73,252 

6,9ii385 

2,01,13,000 

1,83,83,600 

»4,4I.27« 

2,75,11,870 
37.61,976 
22,80,773 

12.21,435 
1,69,27,820 

+    4.58,' 87 

—  2,28,700 

—  5.60,494 
+  48,43.907 
4  13,09,000 

—  47, '32 
+        f6,8« 
4  12,10,000 
4    7.07,802 
4     1,71,004 

+  '3,27,506 
4     1,29.365 
+        12,813 

4     2,16,388 
4    9.':i.3'2 

t  April  I.  t  October  t. 

TRAMWAY  AND  OMNIBUS.— HOME. 


Dublin  United 

Apr.    5 

7,817 

£ 

+   1,914 

1 

£ 
99.454 

4      19435 

Hastings  and  Dist.. 
Isle  of  Thanet 

May    6 

1,160 

+       58 

l8,9'>4 

4        2,274 

„    25 

413 

+       91 

* 

6,525 

—       2.161 

Lancishire  United.. 

,,    29 

3,912 

+     849 

f 

sg.Sfo 

4       18,I0S 

Provincial    . . 

,1    II 

2,880 

4      540 

* 

78,6q8 

4-      14,051 

Yorks.  (W«t.  Rdne.) 

„    19 

3,007 

+   1,104 

t 

48,863 

+      11,358 

*  From  Oct.  i. 

f  From  Jan.  i. 

TRAMWAY  AND  OMNIBUS.— FORbIGN 

AND  COLONIAL. 

£ 

£ 

M.S. 

£ 

£ 

Alabama  Power    ,, 

Apr.  5 

138,191 

+ 

3', 375 

2 

265,020 

+       51,718 

Anglo-Argentine    ,. 

June  3 

53,495 

+ 

3.730 

* 

1,217,924 

+       85,335 

Auckland  Electric. . 

Apr.  12 

23.209 

4 

2,031 

a 

224,466 

4        9,880 

Brazilian  Traction  . 

„     i 

M4,09i,ooo 

+ 

M38,ooo 

M15277000 

—  M8i4,ooo 

Brisbane  Eleo.  Inv. 

33,330 

4 

3,910 

4 

137,369 

4         9,789 

British  Columbia  . . 

„     ! 

♦  129,997 

4 

•32.909 

10 

♦  1,162,554 

+  $193,153 

B.A.  Lacroze 

41,643 

+ 

2,532 

10 

388,06) 

4          2,601 

Burmah  Electrio  . . 

••      ' 

Rs.27,614 

4 

"8.3,915 

213.042 

4    R6.4,945 

Calcutta 

June  I 

Rs.70,348 

4 

Rs.5,981 

* 

RS1442,024 

4Rsl07,3i5 

Carthagena  and 

Herrerias  . . 
Cordoba  Light 

May     b 

5,027 

+ 

706 

* 

22,385 

+         3,738 

P.  &T 

Feb. 

12,972 

+ 

1,076 

11 

147.938 

+            433 

Hongkong   .. 
La  Plata 

Apr.   6 
.,         b 

?i3,iri 
5,169 

4 

31 
940 

4 

•  191,668 
19.972 

+       ♦2,605 
4         2,807 

Lima 

,, 

20,292 

+ 

1.60^ 

4 

62,153 

+        14.3^4 

Madras  Electrio   , . 

May  31  c 

Ra. 41.152 

4  Rs.  7,747 

Rs.403,879 

4RS.60,.  97 

Manila  Electric..;. 

Feb. 

168,000 

4 

25,870 

2 

335,000 

4       46,570 

Mexico 

Nov.   i 

•  215,256 

— 

1108,669 

»    «3,193.I06 

—  •197,227 

Rangoon 

Apr.    5 

5.883 

4 

849 

* 

22,863 

+         2,363 

Singapore  Electric 

„      6 

•  I3.75I- 

_ 

»3>J7 

♦ 

♦187,999 

+       •1,742 

Toronto 

1,    : 

$500,728 

4 

•  20.>!85 

4 

•  1,943,562 

4     •76,r96 

United  of  Monte  V. 

May 

32,301 

4 

3,585 

7 

238,338 

4        23,000 

VeraCrus   .. 

Mar.   S 

47,700 

4,400 

1 

131,900 

—       23,700 

Winnipeg    . . 

Apr.    § 

»65,739 

— 

•5,676 

4 

•282,595 

-    $39,493 

b  aS  dajn,      •  Fi 

om  Jan. 

I.      i  Nett 

a  From 

Jul 

y  I.      cTw 

0  weeks. 

FOREIGN  RAILWAYS. 


Aloovand  Gandta . . 
Antotagasta    (Chili] 
Arauoo         . .        . . 
Argentine  N.B. 
Bilbao  R.  and  Canta 
Bolivar         . , 
Braril 
Brazil  Gt.  Southern 

B.  Ayrei  &  Pacific 
Do.  Central  . . 
Do.Gt.Soutb'n 
Do.       Western 

Central  Argentine. . 

C.Ur'g'ayof  Mte  V. 
Do.  EasfnEx. 
Do.North'nEx. 
Do.Wesfn  Ex. 

Cordoba  Central  . . 

Costa  Rica  .. 

Cuban  Central 

Dorada  Extension . . 

Egyptian  Delta     . . 

Entre  Rios  ., 

French  Sante  F^  . . 

Gt.  South,  of  Spain 

Gt.West.  of  Brazil.. 

Havana  Central     . . 

Inter,  of  C.  Amer... 

La  Guaira  and  Car. 

Leopoldina  ., 

Midland  Uruguay , . 

Mogyana 

N.W.  of  Uruguay  . . 

NiUate 

Paraguay  Central  . . 

PauUsta 

Peruvian  Corpn    . . 

Salvador 

State  of  Bahia  S.W 

S.  Paulo  (Brazilian) 

Sorocabana.. 

TaltaU. 

Unitedof  Havana.. 

West'nof  Havana. 

ZafraanH  Huplva. . 


June    I 
May    26 
Apl. 
June     I 
Apt. 

* 
Mar,  * 
Dec.  ♦ 
June  I 
Apl. 
June     2 


Apl. 
\IaY 

20 
23 

Apl. 

+ 

,, 

30 

June 

I 

Mar 

May 

25 

June 

I 

May 

l8 

Apl. 

C 

June 

1 

Apl. 

Mar. 

Apl. 

May 

31 

June 

1 

Mar. 

* 

May 

♦ 

May 

25 

Apl. 
Jlay 

26 

Mar. 

♦ 

Apl. 

. 

June 

I 

Apl. 


£ 
Ps.  6,703 
32.755 
13,000 
11,400 

3.453 

13,000 

.M4,878,ajo 

Mis. 66,912 

133,000 

36.403 

128,000 

73,000 

151,000 

20,578 

6,283 

4,323 

2,223 

41,000 

3.399 

26,147 

9.500 

7,920 

iy,oco 
135.760 

27i045 

14,300 

10,105 

33,904 

5,000 

32,080 

12,872 

Ml, 629,000 

$22,000 

37,933 

M2,,052,000 

Sl,022,I20 

1,900 

M4O.OOJ 
27,299 

Ml,839.ooo 
25,282 
68,911 
9.886 
14.738 


Pa. 


J,8oo 
9,335 
2,000 

600 
2,011 

962 
4  M7l6,203 

M22,712 

+      59.000 
10  302 
28,000 
30,000 
66,000 
5,888 
1,46  . 
802 
425 
6,460 
2,585 
1,865 
400 
1.997 
4,500 
43,>29 
-Ps;5,485 


+  3,900 
4  2,j8o 
+        4,'34 

—  2,300 
+        5,267 

—  1.800 
4  M  46,737 

—  »6  7 
+        8,579 

—  260 
4Ml85,572 
4  Sll9,340 

—  663 

—  M2,O0O 

+      3.672 

4M232.244 
+      4,679 

+    23,833 

—  1,274 
+      4,361 


tj  Ps.207,100 
920,68^ 

52.000 

410,300 

15,083 
113.775 

M  14506,000 

M  538,439 

4,6oo,OX) 

280.099 

3,298,705 

2,584,000 

3,598,200 

890,063 

248,876 

161,422 

106,695 

1,521,400 

121,652 

1,001,340 

33,400 

24,482 

779,100 

Ps.  625,122 
38 1 ,700 
413,910 
111.780 
24,250 
695,173 

133,04 

M  5,577,;«o 

«  200,607 

312,881 

139.8*0 

M7,752,ooo 

S 11424,560 

101,420 

M277,000 

634,569 

Vl5,575,0  o 

2.9.960 

2,817.831 

447.112 

50,650 


„£ 

Ps.3l,270 
+  123.390 
4  8,000 

4-  70,798 
+  2,ql9 

4  14,630 
4  M2499766 
4  M74,769 
4  484,000 
4        46,182 

—  76,549 
4-       243,(00 

689,100 

255,437 

12  059 

40.836 

19,730 

91.340 

101,276 

171,396 

2,700 

6,990 

194,500 

-PS1389095 
+  101,750 
4        8S.326 

—  23,330 

—  10,750 
+  190,873 
+  2,844 
4M1016736 
4  $17  004 
+  24  93J 
4  15,710 
4  MI993524 
4  S12OC888 

—  2,382 

—  M35,ooo 
+  ,  >67,356 
4  M704,446 
+  6i,7os 
4  687,979 
+  117.  25 
+         9,934 


'  Montiis.  t  From  Jan.  i.   t  From  Ju.'y  i.    c  Nett.    b  13  days,    a  10  days. 

COLONIAL  RAILWAYS. 

1        £ 

£ 

£ 

£ 

Beita 

Dec.  *c  1        49,448 

—       1,842 

173,777 

4 

6,532 

Canadian  Northern 

May  31 

$1,210,900 

—  $96,900 

♦38,419,300 

4$ 

[223,400 

Canadian  Pacific   .. 

„    31 

«4,oj3,coo 

-$771,000 

$59,145,000 

+  t 

1343,000 

Gc.  Trk.  Main  Line 

..    31 

332,719 

4-      25,149 

4,213,091 

4- 

273,271 

Gr.  Trk.  Western.. 

.,    31 

70,308 

4        2,703 

780,789 

+ 

14,802 

Detroit  G.  H.  &  M. 

1.    31 

21,215 

—       i,''99 

231, 210 

23,873 

GrTkPac  Prairie  Sc 

,  "  'i 

25.263 

—       3.796 

493i7>S 

4 

86,023 

Masbonaland 

Jan.    • 

32,822 

—  3,3<;o 

—  I,6t6 

230,599 

4 

3.232 

Mid.  of  Westn,  Aus. 

Mar.  ♦ 

9,59t 

70,728 

4 

2.3  I 
3,839 

New  Cape  Central.. 

Apr.  30 

2.313 

+            433 

33-347 

+ 

Rhodesia 

Feb.  •<: 

62,666 

—      17,737 

4^,466 

10,000 

•  Month 

B.            I 

uly  1. 

t  Jan.  I. 

c  ( 

rom  Oct.  t. 

■AIIB 

■  BTT  ■ARMIIiaS  VOR  MONTH. 

mTT  SAKNINOS  TO  DAT«. 

Month. 

i_.«.>    In.  or  Deo. 
Amount.   o„|„,^e,. 

II 

Amount. 

In.  01  Dee. 
on  last  year 

Dols. 

Dols. 

Dols 

Dols. 

Alcblson  T.  &  S.  Ft 

Jan. 

I,912,oro 

-1,689,900 

12 

47.829,000 

—  1,248.000 

Atlantic  Coast  Line- 

,j 

1,075,000 

—  212,000 

12 

12,014,000 

4      607.000 

Baltimore  &  Ohio  . . 

^ 

1,832,000 

—  1,165,000 

12 

30,589.000 

-  3,425,000 

Canadian  Northern 

Apr. 

541,300 

—    216,600 

10 

3.011400 

—  J.231,000 

Canadian  PaciBo   .. 

3,455,000 

-    720,000 

4 

8,207,000 

—  4  323.000 

Chesapeake  4  Ohir 

Feb. 

627.000 

—    160,000 

2 

5(6,000 

—  1,394.000 

Chicago  &NW.    .. 

Jan, 

b  785,000 

— 2.797.0'^o 

I« 

27,015,000 

—  3,634.00c 

Chicago  Burl.  &  Q. 

Oec. 

1,515,000 

—2,276,00c 

12 

32,867,000 

-  6,232,000 

Chicago  G-W. 

Feb. 

151,000 

_      36,000 

2 

1 42,000 

—     357,000 

Chicago  Mil.  &  S.P 

Jan. 

b  628,000 

—2,291,000 

12 

31,967,000 

—  9  360,000 

Chicago,  Rock  l.&P 

Feb. 

271,000 

—    348.000 

2 

351,000 

—  1 .636,000 

Colorado  &Boutberri 

Dec 

— 

—      11.000 

11 

5,320000 

+     370,000 

Cuba 

Mar. 

488046 

1-    510,194 

9 

3,530,288 

+  1,327.990 

Delaware  &  Hud.  . 

Jan. 

3.600 

—    720,000 

12 

3.696,000 

—  2.124,000 

Denver  &  Rio  Gran 

Feb. 

341,000 

—        I2.0OO 

2 

756,000 

—    »9t.ooo 

Brie 

Dec. 

507.000 

4  1,848,000 

12 

10,538,000 
*  £263.750 

-  5,177,000 

Gr.Tr.  Main  Line.. 

Apr. 

144,600 

-  £51,550 

-  £17,250 

4 

-  £846,600 

Grand  Trunk  Westn 

*  £28.330 

4 

b  i  138,250 

-  £;"•"" 

DeiroitG.ll.&Mil. 

b  £9.6 JO  14         £100 

4 

b  £48,000 

-  £11800 

Gt.  Northern 

Dec. 

1,165,000   —1,401,000 

12 

33,9-17,000 

—  6,179,000 

Illinois  Central      .. 

Feb. 

I  ,co8  000   —    238,000 

2 

531,000 

4  2,272."00 

Kansas  City  Southn. 
Lehigh  Valley 

435.000    4      59.000 

2 

824,000 

—          10,000 

Jan- 

6985,000  !— 1,346,000 

12 

9,403,000 

—  2,876,000 

Louisville  &Nasbvl 

Feb. 

1,462.000 

-        23.000 

2 

3,084,000 

—  1,389.000 

Minn.  S.P.  (Soa)S  .. 

Dec. 

6126,000 

—     883,000 

12 

9,331,000 

_  3,6*8,000 

Miss.  K.  &  Teias  . 

Feb. 

76,000 

-     112,000 

2 

2jI,000 

—     392,000 

Missouri  Pacific   .. 

Nov. 

1,690,000 

4     321,000 

5 

9425,000 

4  1,920,000 

New  York  Cent.4cH 

Feb. 

705.000 

—     243,000 

2 

6     443,000 

4  J.019,000 

N.Y.  N.Haven&H 

Dec. 

207,000 

-1,795,' 00 

12 

23,815.000 

—  3,345,000 

New  York  Ont.&  W 

Apr. 

21,000 

—    60000 

2 

14.000 

_      185,000 

Norfolk  &  Western 

542.000 

-  833,000 

2 

765,000 

—  2,300,000 

Northern  Pacific   .. 

862,000 

—  694.000 

2 

1,644,000 

-  «,I39,«>o 

Pennsylvania    East 

and  West  Lines.. 

Mar. 

2,517,000 

-3,663,000 

3 

610,018,000 

— 620869000 

Phil,  and  Reading  . . 

Nov. 

6  416,000 

—1 ,939,000 

11 

14,877,000 

+       80,230 

Reading 

Feb 

131,541 

4      40,038 

2 

249000 

St.  Louis  &  San  F. . 

Dec. 

I.325.0UO 

—    244  .oou 

b 

9,576,000 
8.628,000 

4.     632.000 

Seaboard  Air  Line.. 

673,000 

-    206,000 

12 

+  1,667,000 

Southern      .. 

Feb. 

1,772,000 

4     412,000 

8 

17,716.000 

Southern  Pacifio   . . 

Jan. 

—     536,000 

12 

59,785,000 

+  7,953,000 

Union  Pacific 

_ 

+        72,000 

12 

42,942,000 

—  3,115,000 

Wabash       .. 

Feb. 

Ii  166,000 

—         8,000 

2 

II     482,000 

—  1,784,000 

i  Includes  Wisconsin  Central.    •  Gross  earnings. 

Surplus 

b  Deficit, 

Copies  of  THE   INVESTORS'   REVIEW  can 
be  obtained  in  Paris  at 

Messrs.  W.  H.  Smith  &  Son's, 
248,  Rue  de  Rivoli. 


You  can  always  obtain  gratis  the 
best  advice  regarding  your  stocks 
and  shares  through  the  medium  of 
the  Answers  to  Correspondents 
column  of 

which  has  the  largest  circulation 
of  any  financial  daily  newspaper 
in  the  world. 

You  should  remember  that  The 
Financial  Times  criticises  "without 
fear  or  favour"  every  prospectus 
that  is  issued,  whether  advertised 
in  its  columns  or  not. 


72,  COLEMAN  STREET,  LONDON,  E.C. 


Telephone : 
3436  London  Wall. 


Telegraois : 
"  Ftnantimo,  Londoa. 


Printed  by  the  St.  Climents  Press,  Ltd.,  Portugal  Street,  Kingsway,  London,  W.C,  for  the  Proprietor  of  Thf  Iktbsiors'  Review,  and  Published 
by  The  PaorRiaToa.  Norfolk  Home,  Norfolk  Street,  Strand,  W.C.  2-— June  8,  i»c«.  [^  •»»♦ 


Xlbe 


Jnvestors*  IRevfew 


FOUNDED    BY    A.     J.     WILSON,     FEBRUARY,     1892. 


Vol.  XLI.— No.  1,067.] 

NEW  SERIES. 


rBegliterad  aa  a1 
L    Newspaper.   J 


SATURDAY,  JUNE  15.  1918. 


[Price  6d. 


CONTENTS. 


Leading  Articles  : — Shipping  Problems  —  Reforming  Edu- 
cationists in  Excelsis  —  The  "Objects"  of  Limited 
Companies  —  By-the-Way  War  Notes  —  Italy  :  Demobili- 
sation Suggestions,  Tariffs,  &c.  (pp.  567-8,  572-3  and  584). 

Passing  Events  : — National  War  Bonds  —  The  Revenue  — 
Gold  Mine  Difficulties  —  Vote  of  Credit  —  President 
Wilson's  "Idealism"  —  Forestal  Land  —  Pease  and 
Partners  —  Wm.    Cory   and    Son  —  Lyons  — ^  British    Dyers 

—  Central  Mining  Corporation  —  Schweppes  —  Post    Office 
Statement   (pp.  568-72). 

American  Business  Notes  : — New  York  Central  —  St.  Louis  San 
Francisco  —  Increase  in  Railway  Wages  —  Discount 
Company  of  New  York  —  Fixing  Prices  of  Proprietary 
Articles  (p.  574). 

Insurance  News  : — Japanese  Invasion  of  the  American  Insurance 
Field  —  Legal  Point  on  Life  Assurance  —  Phoenix  Meeting 
(p.  574). 

Money  and  Credit  Notes: — Easy  [Credit  —  Bank  Return  — 
Presentation  to  Lord  Cunlifle  —  Eighth  German  Loan  — 
Corporation  of  London  Bills  Renewal  —  Port  of  Para  — 
Australian  Bank  of  Commerce  Absorbs  City  of  Sydney  — 
New  South  Wales  Loan  Expected  —  Exchange  Fluctuations 

—  Silver  (pp.  576-8). 

Traffic  Returns  (p.  575). 
The  Week's  Stock  Markets  (pp.  578-9). 
,     London  Produce  Markets  (pp.  579-80). 


Mining  News :— Transvaal  Gold  Production  —  Native  Labour 
Returns  —  Randfontein  Central  —  Langlaagte  Estate  — 
Transvaal  Estate  and   Development  —  Mongu  (Nigeria)  Tin 

—  Bisichi  Tin  —  Ouro   Preto  of  Brazil  —  Tomboy   Gold  — 
Nipissing  —  Esperanza  (pp.  580-1). 

Tea,  Oil,  and  Rubber: — Lower  Rubber  Imports  —  Prospects 
of  Post-War  Trade  —  Highlands  and  Lowlands  Para 
Rubber  (pp.  582-3). 

What  Balance  Sheets  Tell :— Ebbw  Vale  Steel,   Iron  and  Coal 

—  Brnnner,  Mond,  and  Co.  —  Anglo-Argentine   Tramways 
Co.  —  Albert  Baker  and  Co.  (1898)  —  South  Australian  Co. 

—  United  River  Plate  Telephone  Co.  —  Land  and  Mortgage 
Co.  of  Egypt  (p.  584). 

Company  Meetings: — The  Fellows  Magneto  Co.  —  Phoenix 
Assurance  Co.  —  Siemens  Brothers  and  Co.  —  Lipton, 
Limited  —  Nobel's  Explosives  —  Elder  Dempster  and  Co.  — 
Bisichi  Tin  Co.  (Nigeria)  (pp.  585-7). 

The  Week  in  Mines  (p.  580). 

Mining  Returns  for  May  (p.  S81). 

Company  Results  in  Brief  (p.  581). 

Public  Income  and  Expenditure  (p.  582). 

Oilfields  Production  (p.  582). 

Dividends  Announced  (p.  583). 

Answers  to  Correspondents  (p.  583). 

Russian  Government  and  Municipal  Securities  (p.  583). 


CANADA. 

THE  DOMINION  BANK. 

Head  Office,  TORONTO. 
Total  Assets    -      •    $109,438,000. 

SIR   EDMUND  B.   OSLER,  President. 
W.  D.   MATTHEWS.  Vice-President. 
C.   A.    BOGERT,  General  Manager. 


London  Branch,  73,  CORNHILL,  E.C.3. 

J.  HAYDN  HORSEY,  Manager. 


Dealers  in  Canadian  and   American   Exchange. 
General  Banking  business  transacted.   Informa- 
tion furnislied  regarding  Canadian  matters. 

ROYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  1717. 

PAID-UP  CAPITAIi £2,000,000 

REST  AND  UNDIVIDED  PROFITS  914,968 

DEPOSITS 26,177,865 

Head    Offlce:    ST.   ANDREW   SQUARE,  EDINBURGH. 
Cashier  anJ  General  Manager,  A.  K.  Wright.        Secretary,  J.  B.  Adshiad. 

London    Offlce:    3,    BISHOPSGATE,  E.C.  2. 
William  Wallace,  Manager.  Alex.  Dick,  Deputy-Manager. 

Glasgow  Offlce:     EXCHANGE  SQUARE. 
A.  Dekhistou.n,  Agent.  Thomas  Lillie,  Sub-Agent. 

1B7  Branches  throa^out  Scotland. 
Banking  Business  of  every  description  transacted.  Accounts  opened  and  Agency 
business  undertaken  for  Foreign  ind  Colonial  Banks  and  other  financial  estab- 
lishments. Draffs,  Circular  Notes,  and  Letters  of  Credit  issued  —  available 
throughout  the  world.  Cable  transfers  are  also  made.  Deposits  received  at 
interest  repayable  at  call  or  at  notice.    Correspondence  invited. 


THE  BAKK  OF  TAIWAN,  LTD. 

Incorporated  by  the  Special  Charter  of  the  Imperial 
faptmese  Government,  1S99. 


HEAD  OFFICE 


-     TAIPEH,   FORMOSA. 


Amoy,  BatavJa,  Bombay,  Canton,  Foochow,  Hankow,  Hongkongi 
Kuiktaog,  Kobe,  New  Yotk,  Osaka,  Shanghai,  Singapore,  Swatow, 
Soerabaya,  Tokyo,  and  every  important  city  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58.  OLD  BROAD  ST.,  E.C.  2. 


I 


SCOTTISH  AMICABLE 

LIFE    ASSURANCE    SOCIETY. 

(Established  1826.) 

A     MUTUAL     PROFIT-SHARING     OFFICE. 
COMPOUND    BONUSES. 

Bonus   Declared    at   Latest    Investigation    £1    15s. 
per  cent,  to  £4  12s,  per  cent,  according  to  duration. 


Head  OIBce ; 
L.oad'^  Office : 


35,  ST.  VINCENT  PLACE,  GLASGOW. 
I,  THREADNEEDLE  STREET,  E.e.  a. 


THE  YOKOHAMA   SPECIE   BANK,  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1880. 

Sabscrlbed  Capital        Ten  48,000,000 

Capital  Paid  Up Yen  42,000,000 

Reserve  Fund         ..        ..  ..    Yen  23,100,000 

Head  Offici:  YOKOHAMA. 

Brant hes  and  Agentus  ai 
Bombay.  Honolulu.  Newchwang.  Shimonosekl. 

Buenos  Ayres.  Hong  Kong.  New  York.  Singapore. 

Calcutta.  Kobe.  Osaka.  Sourabaya. 

Changcbun.  Los  Angeles.  Peking.  Sydney. 

Dairen  (Dalny).  Lyons.  Rangoon.  Tientam. 

Pengtien  (Mukden).       Manila  San  Francisco.  Tokyo. 

Hankow.  Nagasaki.  Seattle.  Tsinanfn. 

Harbin.  Shanghai.  Tsingtau. 

The  Bank  buys  and  r«c«iT*>  for  collection  Bills  of  Bzehange,  issues  Drafts 
and  Telegraphic  Transfers  aod  Letters  of  Credit  on  abore  places  and  elsewhere, 
and  tnmsacts  General  Banking  Business. 

Deposits  receiTed  for  fixed  periods  at  rates  to  be  obtained  on  applioslioB, 
London  OfiSiie  :  7,  BISHOPSGATE,  E.C.«. 

K   TATSUMI,  Maaa^ir. 


THE  BANK  OF  ADELAIDE. 

(Inoorporated  by  Act  of  Parliament,  1865.) 
AethariMil  Capital         -    S1.0«0,tM.  Siilis«rlb«d  OtpiUI    -    -    £eM,aM 

Paid-up  Capital       £500.000 

Reserve  Fund  555,000 

£1,055,000 

Unealled  Capital 115,000 

Reserve  Liability  of  Proprietors        6a5,ooo 

£1,805,000 

London  Office— 11,  Lsadeahall  Street,  E.C.  3. 

BILLS  on  Australasia  purchased  or  collected. 

DRAFTS  issued  and  REMITTANCES  cabled. 

DEPOSITS  iceeiTtdfoT  fixed  peiiodtat  nts*  MbeassutainedoaaMUssllMi. 

PERCY  AW40LD,  ^aoacer 


/ 


Zbc  investors'  TRevtew. 


JIXE  I-;.  rqi8. 


BANKS. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office;  15,  Gracechurch  Street,  London,  E.C.  3. 


Capital  Authorised         

Capital  luued      

Capital  Paid  Up 

Rcterve  Fund  (Undivided  Profits) 


£1,500,000 

1,125,000 

562,500 

708,432 


Branches : 

INDIA,   BURMAH,   CEYLON,    STRAITS    SETTLEMENTS 

CHINA.    AND    PORT    LOUIS.    MAURITIUS. 


Tht  Bank  buys  and  sells  Billt  of  Ezchanfe,  issuet  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  witb 

the  East,  on  terms  to  be  had  on  application. 

DKP08ITS  received  for  one  year  at  5  per  cent,  per  annum.    Rates  for  other 

periods  on  application. 

On  ouprant  kooounts  interest  is  allowed  at  >  per  e«at.  per  annvm  on 

daily  balances. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital  £4,000,000 

Paid-up  Capital  1,800,000 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario,  Mendoza,  Concordia,  Bahia 
Blanca,  Cordoba.  Tucuman,  Parana,  Barracas  (Buenos  Aires),  Once 
(Buenos  Aires),  Boca  (Buenos  Aires),  Calle  Santa  F^  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires).  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Paysandu  (Agency),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro,  Sao  Paulo,  Santos,  Per- 
aambuco.  Para,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (16  Rue  Haldvy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


THE     WESTERN     AUSTRALIAN     BANK. 

Established  184T. 
Pald-np  Capital    ..    £230,000   0    0     25,000  Shares  of  £10  each. 
Reserve  Fond  . .     . .  £700,000    0    0  |  Reserve  Profits    . .  £19,330 

Beservea  Liabilltv  of  Shareholders  £280,000. 

Unifts  Issued    Remittances  cabled.  Bills  negotiated  or  collected,     Deposits 

received  tor  fixed  pcried^  at  rates  to  oe  asceriained  on  application,  and  all 

banking  and  exchange  business  connected  with  Western  Australia  conducted 

through  the  London  Agents,  The  Bank  of  Adelaide.  11,  Leadenhall  St.,  B.C.  3. 


ENGLISH,    SCOTTISH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

Haadl  Offloe— 38,  XLiombavd  Stveat,  E3.Ca3> 

Subscribed  Capital £1,078,875    o    o 

Paid-up  Capital 539.437  10     a 

Further  Liability  01  Proprietors     . .        . .  539,437  10    0 

Reserve  Fund 500,000    0    0 

LETTERS  OF  CREDIT  and  DRAFTS  on  the  Branches  and  Agencies  of 
the  Bank  in  Australia  can  be  obtained  at  the  Head  Office,  or  through  the  Agents 
of  the  Bank,  in  the  chief  Provincial  towns  throughout  the  United  Kingdom, 
REMITTANCES  made  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOTIATED  or  forwarded  for  COLLECTION. 
BANKING  and  EXCHANGE  Business  of  every  description  transeoted  with 
Australia. 

E.  M.  lANION,  Manager. 


BANK    OF    NEW    ZEALAND. 

{Incorporated  July  2gth,  1861.) 
BANKERS  TO  THE  NEW  ZEALAND  GOVERNMENT, 
London  Office:  1,  Queen  Victoria  Street,  London,  E.C.j). 

AUTHORISED  CAPITAL        £5,500,000 

SUBSCRIBED  CAPITAL. 

Four  per  Cent.  Guaranteed  Stock         £529,988 

**A"   Preference  Shares  issued  to  New  Zealand  Government        ..       500,000 

B"  Preference  Shares  issued  to  New  Zealand  Government        ..       250,000 

Ordinary  Shares 1.500.000 

Reserve  Fund  and  Undivided  Profits £2,246,595 

Negotiates  and  collects  Bills  of  Exchange. 

Grants  drafts  on  its  Offices  in  New  Zealand,  Australia,  Fi}i  asd  Samoa.     Re- 
mitMuiscs  made  by  telegraphic  transfer. 

ALEXANDER  KAY,  Manager. 


BANKS. 


BANK  OF  NEW  SOUTH  WALES 

Eslablished  1117. 

Paid  up  Capital £3, 904,860 

Reserve  Fund     2,950,000 

Reserve   Liability   ef 

Proprietors     3,904,860 

g1 0,759,720 

Head  Office :  SYDNEY,  NEW  SOUTH  WALES. 
London  Directors : 

Sir  Frederick  Green,  Chairman. 
H.  L.  M.Tritton,  Esq.  Walteb  S.  M.  Burns,  Esq. 

].  S.  Campbell,  Stcrttary. 
Halkerstone  Meldp.uu,  David  Geddie, 

Assistant  Manager.  Accountant. 

The  Bank  has  331  Branchea  and  Agencies  in  the  Australian  States, 
New  Zealand,  Fiji,  Papua  (New  Guinea),  and  London,  and  Ageiits  and 
Correspondents  all  over  the  World,  on  whom  the  Lotidon  Office  grants 
Circular  Letters  of  Credit  and  Circular  Notes.  Also  issues  Drafts  on 
demand.  Makes  Mail  and  Cable  Transfers.  Negotiates  and  Collects 
Bills  of  Exchange.  Receives  Deposits  for  Fixed  Periods  on  terms 
which  may  be  known  on  application,  and  transacts  every  description  of 
Austrilian  Banking  business. 

London  Office:  29,  THREADNEEDLE  STRBBT,  E.C.  2. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  Incorpoeated  18S0. 

Authorised  and  Issued  Capital,  £6,000,000. 

Paid-up  Capital,  £2,000,000 ;  Reserve  Fund,  £2,000,000 ;  together   £4,ooo,oooJB 

Reserve  Liability  of  Proprietors 4,000,000^ 

Total  Capital  and  Reserves £8,ooo,ooc(| 

HEAD  OFFICE   -        -        -        71 ,  CORNHILL,  LONDON,   E.G.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Auatrallen 
States  and  Dominiin  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
OQ  application. 


FARROWS  BANK  LIMITED 


Authorised    Capital 
Shares    issued 
Shareholders 


-      £1.000,000 

700.000 

4.000 


All  descriptions 
of  Banking  busi- 
ness, including 
the  collection  of 
Bills,  Dividends. 
Annuities,     etc., 

transacted. 
Foreign  Money 
eichanged  and 
Drafts  issued  to 
alt  parts  of  the 
World, 


Chairman : 

Mr.     THOMAS    FARROW. 

EVERY   DESGRIPTION 

OF  JOINT-STOCK 
BANKING  JRANSAGTED 

Foreign  Banking  business  of 
at!  descriptions  undertaken. 

Atfents  throughout  the  World 


Strong  Rooms  for 
tlic  safe  custodj' 
of  deeds  and  other 
r-roperty  proviiled 
for  the  use  of  the 
Bank's  customers 

Stocks  and  Shares 
bought  and  sold 
on  behalf  of  cus- 
tomers and  the 
public    genera'ly. 


HEAD     OFFICE:     1,      CHEAPSIDE,      LONDON.     E.C.  2 

Branches  throughout  the  United   Kingdom,      a   h  <S:  co. 


Zbe  3nve0tors'  IRcview. 

SCALE  OF  CHARGES JFOR^ADVBRTISEMENTS. 

PROSPECTUSES. 
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Under  one  page,   at  per  inch,  ISO 

single  column 
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REPORTS    OF    COMPANY    MEETINGS. 
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Per  Column...  ...  ...  6    11      6 


COMPANIES' 

Whole  Page 
Half  Page   ... 
Quarter  Page 


BALANCE-SHEETS. 

£15    15  O 

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DIVIDEND    NOTICES,  &C. 

Per  Inch      ...            ...            ...  £0   12  6 

BANKS    AND    INSURANCE    COMPANIES. 

Special  position          ...             ...  O  18  9 

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Money  Article,  per  inch      ...  £0  IS  O 

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Discount  for  Series. — 5%  for  Thirteen,  10%  for  Twenivsix, 

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"INVESTORS'   REVIEW,"    Norfolk   Housk,  Norfolk  Strkit,  Stuasd, 

l-ONDOS,   W  C. 


tTbe  5nve6tore*  IRevfew. 


Vol.  XLI. 

New  Series. 


-No.  1,067 


SATURDAY,  JUNE  15,   1918. 


etXlltr)  Price  6d. 


PUBLISHER'S    NOTICES. 

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on  the  following  terms : — 
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For  the  Colonies  and  Abroad  the  charge  is 

One  Year  £1  8$.  Od.    Six  Months,  I4s.  Od.    Three  Months,  7s.  Od 

Short  of  Three  months  the  Price  is  6Jd.  per  Copy  Inland,  and 

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Gerrard  9132. 


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London,  W.C. 

Telegraphic    Address : 
"  Unveiling,  London." 


The  Editor  cannot  undertake  to  return  rejected  com- 
aiunlcatioas. 

Letters  from  correspondents  must,  in  every  case  be 
authenticated  by  tlie  name  and  address  of  the  writer. 

The  Editor  desires  it  to  be  understood  tliat  a  charge  is 
made  for  the  insertion  of  reports  under  the  beading  of 
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for  statements  made  therein. 


ANSWERS  TO  QUERIES. 

One    Reply    to    One    Question  —  One    Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  kept,  as  securities  cannot  be  named  with  comment*  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issne 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  in  advance,  * 
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following  week. 

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be  acknowledged  in  the  "Answers"  column.  Notice  di 
exhaustion  will  also  be  given  there. 

Telegpams  advising  about  new  securities  cost  Ha.lf-a- 
Cr>Own  each,  plus  cost  of  the  telegram. 

Private  letters  in  answer  to  inquiries  can  be  had  if 
desired.  The  minimum  charge  for  such  letters  is  Tan 
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Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  on  terms  varying  according  to  the  tiiB« 
taken. 

Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


Shipping  Pifobiems. 

.Allhough  a  very  large  amount  of  money  invested  in 
shipping  .securities  is  quoted  on  the  Stock  Exchange, 
most  of  it  is  represented  by  preference  shares  and 
debentures,  which  only  fluctuate  within  comparatively 
narrow  limits  according  to  the  varying  value  of  credit. 
Ordinary  shares  to  a  great  extent  are  held  privately 
or  have  been  bought  up  by  larger  concerns  for  purposes 
of  control,  and  the  active  shipping  market  has  not 
many  more  than  a  round  dozen  counters  to  play  with. 
But  this  small  group  affords  plenty  of  scope  for 
excitement,  as  a  glance  at  the  accompanying  table  will 

Pre- 
sent. 


Cairn  Line 

Clan  Line    

Court  Line 

Cunard    

Ellerman  Pf .  Ord 
Furness  Withy  . . 
Intrnl.  Mercantile 

King  Line    

P.  andO.  Def.   .. 

Prince  Line    

Royal  Mail 

Sutherland  S.S... 


19 

13- 

19 

16. 

I9I7.        1 

H. 

L. 

i.-i/S 

H. 

L. 

H. 

L. 

i8/9 

74/3 

35/ 

52/ 

1.3* 

"i 

.32i 

2l'i 

55i 

2.5A 

— 

47/ 

26/ 

42/6 

26/6 

.36/ 

28/ 

5-h 

67/ 

4i 

64/ 

ioto 

94 

9i 

9^ 

«S 

34/3 

25/ 

31^ 

34/3 

bo/ 

40/ 

4lfe 

.3* 

53 

15 

3« 

25 

9^ 

8 

2 

24/b 

2A 

31/t. 

350 

262 

349 

270 

342J 

295 

26/6 

20/ 

6S 

^^L 

61 

3i 

143 

97 

1344 

97i 

125 

109 

26/ 

21/3 

34 

2 

34 

51/ 

2^ 

43 

37/ 
4i 
94 

66/ 

31 

2i 

34ii 
53 
126 

If 


show.  We  have  chosen  191 3  as  a  starting  point 
because  international  trade  reached  its  highest  develop- 
ment in  that  year  and  the  mercantile  marine  was  ex- 
ceedingly prosperous.  Then  came  the  war,  which  upset 
all  calculations ;  but  for  a  time  many  shipping  com- 
panies made  enormous  profits,  those  with  fleets  of  good- 
class  "tramp"  steamers  being  particularly  fortunate. 
Lines  like  the  Cunard,  the  P.  and  O.,  and  the  Royal 
Mail  did  not  do  so  well,  because  a  large  proportion 
of  their  tonnage  was  immediately  requisitioned  by  the 
(lovernment  at  Blue  Book  rates ;  but,  all  the  same,  the 
price  of  Cunard  shares  has  more  than  doubled,  while 
P.  and  O.  deferred  and  Royal  Mail  have,  on  the 
average,  kept  at  a  substantially  higher  level  in  spite 
of  the  exceptionally  severe  excess  duty  which  Mr. 
Bonar  Law  imposed  on  them.  Subsequently  alinost 
the  whole  of  the  British  mercantile  fleet  was  brought 
under  the  Shipping  Control ;  but  it  became  evident  last 
year  that  owing  to  tRe  increased  cost  of  running  and 
other  working  charges  the  companies  could  not  earn 
even  the  pre-war  rate  of  profit,  and  a  revision  of  Blue 
Book  rates  has  recently  been  conceded,  which  has  given 


the  market  a  fresh  lease  of  courage.  This  was  helped 
by  a  legal  decision  to  the  effect  that  while  the  Govern- 
ment could  requisition  ships,  it  could  not  commandeer 
services — all  the  intricate  organisation  which  the 
shipping  companies  had  built  up  throughout  the  world 
for  the  handling  of  freights,  and  which  it  was  im- 
possible for  the  Shipping  Controller  to  replace.  Conse- 
quently, the  actual  management  of  the  vessels  is  still 
left  in  the  hands  of  the  various  companies,  and  under 
the  new  scale  of  rates  it  is  evidently  believed  by  the 
experts  in  the  market  that  the  outlook  is  encouraging, 
prices  having  recovered  substantially  from  the  lowest 
touched  last  year. 

It  will  be  seen  from  our  table  that,  with  the  exception 
of  P.  and  O.  and  Royal  Mail,  quotations  generally  are 
well  above  the  pre-war  level.  In  the  case  of  the  King- 
Line  we  should  explain  that  the  £io  shares  were  split 
into  ;^'i  in  1916,  and  the  wild  fluctuations  in  Inter- 
national Mercantile  Marine  were  partly  due  to  a 
suggested  reconstruction  scheme  which  was  afterwards 
withdrawn.  As  a  rule,  however,  shareholders  have  had 
plenty  of  opportunities  for  securing  very  handsome 
profits ;  but  when  all  the  risks  that  the\-  run  are  taken 
into  account,  no  one  will  grudge  them  whate\'er  good 
fortune  has  come  their  way. 

But  the  outlook  is  decidedly  obscure  in  many 
respects.  It  is  very  unlikely  that  Government  control 
can  be  dropped  for  a  long  time  after  the  war,  because 
overseas  troops  will  have  to  be  repatriated,  and  there 
will  be  an  immense  amouni;  of  reconstruction  work  to 
tackle  in  devastated  territories  which  can  only  be 
accomplished  under  Government  auspices.  There  will 
be  urgent  demands  for  food  and  raw  materials,  which 
must  be  supplied  by  the  respective  Governments, 
because  the  people  requiring  them  will  not  have  the 
money  to  pay.  The  case  of  the  Central  Powers  will  be 
desperate  in  these  respects,  but'they  must  wait  till  the 
needs  of  the  Allies  are  satisfied,  and  that  cannot  be  done 
in  a  month  or  two.  ITiere  has  been  a  terrible  loss  of 
iwnnage  by  enemy  action,  stray  mines,  and  the  in- 
variable toll  of  the  sea  itself;  but  we  have,  in  all 
human  probability,  passed  the  climax  in  this  matter, 
and  the  building  "of  new  ships  at  the  rate  projected  in 
this  country,  the  United  States,  and  Japan  proceeds 
apace,  and  will  soon  redress  the  balance  unless  some- 
thing quite  unforeseen  and  incalculable  occurs.  Look- 
ing a  bit  farther  ahead,  the  danger  .seems  to  be  rather 


568 


tibe  Jnvestors*  IRevtew* 


Jlne  15,  191S. 


that  there  will  be  too  many  ships  than  loo  few  at  a 
very  early  period  after  peace  is  restored,  and  it  will 
take  some  considerable  time  for  the  balance  between 
supply  and  demand  to  become  nicely  adjusted.  The 
.shipping  business-  has  always  been  liable  to  violent 
fluctuations  between  prosperity  and  depression,  and 
there  is  no  reason  to  suppose  that  conditions  in  the 
future  will  be  fundamentally  different  from  those  in  the 
past.  But  the  transition  period  will  be  a  very  trying 
one  for  everylx)dy,  and  shareholders  ought  to  look  for 
big  yields  on  their  investments  to  compensate  them 
•for  the  lean  years  lying  ahead. 


Reforming    Educationists    in    Excelsis. 

We  confess  to  inability  lo  get  up  any  enthusiasm 
abtjut  the  Education  Bill,  on  whose  piecing  together  the 
House  of  Commons  is  wasting  so  much  lime,  'lliis  is 
not  because,  never  ourselves  having  had  any  education 
to  si>eak  of,  we  have  no  interest  in  the  proper  instruc- 
tion, of  the  people ;  the  very  reverse  is  the  truth.  We 
have  the  keenest  interest  in  seeing  to  it  that  all  our 
youth,  male  and  female,  are  proi>erly  equipped  for  the 
battle  of  life,  and  that  all  have  fair  play  at  the  start. 
And  we  have  a  decided  opinion  that  in  order  to  secure 
these  aims  education  must  be  cheap,  open  to  all,  and  to 
a  large  extent  under  local  c-ontrol,  because  the  qualifica- 
tions necessary  for  success  in  one  district  may  be  com- 
paratively valueless  in  another.  If  a  system  of  education 
is  centralised  it  becomes  wholly  bureaucratic  and  rigid, 
inelastic,   increasingly  valueless  in  short. 

Does  the  Bill  now  being  hammered  into  an  .'\ct,  as 
we  suppose  it  will  be,  in  the  House  of  Commons  satisfy 
us  on  any  of  these  points?  It  does  not.  So  far  as 
we  can  see  there  is  comparatively  little  of  the  real 
practical  educator  about  it ;  but  waiving  that  point,  upon 
which  the  academic  serenities  would  doubtless  say 
that  one  who  has  had  to  struggle  up  and  mostly 
educate  himself  can  give  no  valuable  opinion,  let  us 
look  at  the  financial  aspects  of  the  proposed  measure. 
Do  these  promise  economy?  Certainly  not.  They 
indicate  extravagance,  and  the  whole  Bill  from  the. 
monetary  side  appears  to  be  framed  by  individuals 
devoid  of  the  most  rudimentary  conception  of  what 
costs  mean.  The  members  are  wrangling  in  the 
Commons  over  continuation  classes,  the  stoppage  of 
half-timers,  the  compulsory  attendance  of  pupils  at 
.school  after  a  certain  age,  and  other  provisos  all  imply- 
ing extra  cost  to  the  parents  .or  longer  deprivation  of 
the  help  of  their  offspring. 

The  working  man  and  woman  are  treated  as  abstract 
impersonalities,  to  be  manipulated  upon  by  our  educa- 
tionalists as  if  they  were  so  many  dead  carcases  on  the 
dissecting  table.  And  the  teacher  naturally  comes  in 
for  his  share  of  attention.  He,  or  she,  must  receive 
better  payment  and  various  other  privileges,  and 
nobod)'  gives  a  thought  to  the  question,  Where  is  the 
money  to  come  from?  The  reformers  do  not  realise, 
and  probably  do  not  want  to  realise,  that  the  country 
will  probably  have  no  money  at  all  after  this  war  ends, 
out  of  rates  and  taxes,  for  education.  It  will  be  hard 
put  to  to  pay  its  creditors,  and  will  have  nothing  over 
either  ifor  bureaucrat,   or  pedagogue,  or  anybody  else. 

That  being  so,  and  this  is  the  hard  fact,  would  it 
not  have  been  more  in  accordance  with  common  sense 
and  with  the  actualities  of  life  to  have  either  let  educa- 
tion alone  altogether  amid  the  anxieties  of  war,  or  have 
tried  to  frame  a  simple,  genuinely  democratic  scheme 
whereby,  for  one  thing,  means  now  utilised  almost  ex- 
clusively in  the  "  snob  factories  "  of  the  rich — our 
"  public  schools" — would  have  been  spread  over  the 
nation  sp  as  to  cheapen  education  for  the  people?  Tlie 
system  itself  s-hould  have  been  wholly  practical,  and 
sh;<ped  with  a  definite  practical  purpose.  What  is  tfte 
value  of  the  wasted  or  misappropriated  educational 
endowments  of  England  alone?  What  are  the  mostly 
wasted  revenues  of  the  London  livery  companies  alone? 
Is  there  no  monej-  of  the  Church  that  has  been  devoted 
to  clerical  uses,  and  whose  original  purpose  was  to 
further  the  et^ucation  of  the  jieople? 


Questions  of  this  kind  will  be  asked  with  greater  and 
greater  insistence  as  time  goes  on,  and  it  surely  would 
have  bee'n  mere  common  prudence  to  face  them  and  try 
to  find  a  just  .solution  while  yet  there  was  time.  But 
no,  the  superior  person,  who  from  the  heights  of  his 
academic  privileges  and  endowments  looks  down  upon 
the  multitude  of  his  fellow-men,  thinks  otherwise,  and 
the  country  is  having  prepared  for  it  an  elaborate, 
smatteringof-e\erything,  cast-iron  system  of  instruc- 
tion, which  does  not  .seem  to  be  education  at  all  in  any 
real  .sense  of  the  word.  Does  it,  for  example,  make 
provision  for  the  effective  teaching  of  modern  languages 
— as  living  languages,  not  as  dead?  It  does  not,  and  the 
contemplated  cost  of  it  is  going  to  destroy  its  utility 
at  the  Very  .start.  The  nation  is  expected  to  accept  this 
as  the  manifestation  of  the  highest  wisdom.  We  rather 
think  the  public  will  take  another  view  by  and  by,  and 
certainly  it  will  not  interest  it.self  furiously  in  the  ques- 
tion whether  universities  or  the  education  departments 
.should  inspect  schools,  whether  parents  of  children  kept 
at  school  by  law  beyond  the  time  w-hen  they  might  go 
to  work  .should  get  a  "  maintenance  "  allowance  from 
the'  State  or  not. 

But  the  .serene  unconsciousness  with  which  Mr. 
Fisher  and  his  phalanx  of  educationists  pursue  their 
way  in  complete  obliviousness  of  the  real  position 
almost  forces  us  to  admire  them.  Do  they  imagine  that 
they  are  going  to  save  the  public  .schools  and  their 
linked  universities  from  overhaul  by  their  haste?  We 
should  not  be  too  impulsive  in  crediting  them  with  so 
much  foresight.  They  are  just  amiable  academic 
philanthropists  intent  on  showing  a  gaping  nation  how 
wise  and  beneficent  they  are — at  other  people's  cost. 


Passing   Events. 

In  .some  respects  cheering  enough,  the  sales  of 
National  War  Bonds,  Bank  of  England  issue,  last  week 
were  neither  what  they  should  have  been  nor  what  is 
required.  There  were  35,.Ji2  applications,  an  increase 
of  25,953  on  the  week,  and  these  took  up  ;^,  16, 535, 437 
more  than  in  the  previous  week,  the  total  applied  for 
having-  been  ^32,822, 199.  These  figures  bring  up  the 
total  number  of  applications  to  640,809  and  the  total 
amount  applied  for  to  ;^758,263,ooo.  Regarding  the 
Post  Oflice  applications  for  National  War  Bonds,  the 
figures  of  which  come  down  to  the  ist  inst. ,  there  were 
19,700  applications,  an  increase  of  9,260,  and  this 
increase  meant  that  ;^i68,i6o  more  was  taken  up  at 
;^'484,5oo.  The  totals  are  thus  brought  up  to 
1,190,594  applications  and  ;£,''29, 700,340  in  money  from 
the  Post  Office — presumably  in  the  main  from  workers. 
Of  War  Savings  certificates  sold  during  the  same  week 
the  number  was  2,658,242,  bringing  up  the  total  sold 
to  that  date  to  201,926,945,  which  means  that  the 
Government  has  received  nearly  ;£,"i  56,500,000  from 
this  source  during  the  two  years  odd  that  the  certificates 
have  been  on  sale.  How  much  more  would  they  have 
got  had  an  intelligently  conceived  and  wisely  adjusted 
and  managed  system  of  premium  lx>nd  .sales  been  in 
force  during  the  same  time?  It  is  useless  to  ask  a 
question  of  tljat  kind  because  our  financial  guides  have 
never  been  taught  to  understand  in  the  least  what 
credit  can  do,  or  what  the  arrangements  for  generating 
credit  may  mean  or  invohe.  Will  the  Chancellor  of 
the  Exchequer  tell  the  citizens  %\ho.so  credit  he  manipu- 
lates and  pledges  at  will  and  at  pleasure,  how  much 
actual  new  money  has  been  recei\  ed  under  the  various 
debt-raising  devices? 

From  taxes  and  State  monopolies  the  rexenuc  last 
week  was  ;£'9, 170,000,  and  the  actual  fresh  expenditure 
of  the  week  was  ;^64, 770,000.  Of  this,  ;^"44,o36,ooo 
was  absorbed  in  supply,  or  ^'6,291,000  per  diem. 
Nearly  the  whole  of  the  balance  was  in  the  form  of 
interest  paid  on  the  war  debt,  which  took  ;^20, 688,000. 
This  bring's  up  the  amount  paid  out  as  war  debt  interest 
in  the  past  fortnight  to  about  ;£'58, 600,000,  and  of  that 
amount  it  w-ould  seem  that  so  far  only  ^^^16,500, 000 
have  been  handed  back  to  the  Treasur)-.     That  is  the 


Ji;\E  15,  1918. 


^be  Jnvestors'  IReview. 


569 


visible  and  not  too  exhilaratingf  result  of  the  strenuous 
effort  made  by  the  Government's  advertising  agfencies, 
backed  by  a  loyal,  because  well-subsidised,  Ppess,  to 
"enthuse"  investors.  We  wish  the  result  had  been 
more  encouraging,  because,  financially,  we  are  almost 
insisting  on  defeat. 


Beyond  the  ^"64,770,000  to  which  the  week's  actual 
expenditure  amounted,  the  Government  had,  in  addi- 
tion, to  pay  off  /^78,453,ooo  of  matured  Treasury  bills 
and  of  such  bills  tendered  in  subscription  for  National 
War  Bonds.  Also  ^£,'2, 548, 000  of  War  Expenditure 
certificates  had  to  be  paid  off,  that  figure  also  including 
some  amount  of  these  certificates  used  to  pay  National 
War  Bond  subscriptions.  Then  ;^i, 000,000  of  tem- 
porary advances  was  repaid  and  ^300,000  was  dis- 
bursed as  "  depreciation  "  in  support  of  market  prices 
for  war  stock,  also  ^54,246  of  War  Ix>ans  and 
Exchequer  bonds  were  paid  off.  So  the  entire  expendi- 
ture rose  to  ;^i47, 325,000,  and  as  the  amount  raised 
by  new  Treasury  bills  was  ^13,719,000  more  than  was 
paid  off,  while  ^14,423,000  was  received  from  National 
War  Bond  sales  and  ;£'4, 197,000  from  American  help, 
still  euphemistically  rubric-ed  as  "  Other  war  debt  " 
sources,  the  Treasury  would  seem  to  have  had  about 
enough  without  going  to  its  bankers  for  day-to-day 
jnoney.  It,  however,  judged  otherwise,  and  borrowed 
;^3o,ooo,ooo  on  temporary  advances,  so  that  the  week 
ended  with  nearly  ;^5, 210,000  of  credit  in  hand  to  be 
added  to  the  Exchequer  balances,  thereby  raising  them 
to  ;^i5>850,ooo.  That  is  to  say,  the  week's  resources 
in  all  shapes  were  ;i^i52, 534,000  and  the  week's  expendi- 
ture j^i47, 325,000.  The  nett  amount  of  actual  revenue 
encashed  this  fiscal  year  up  to  last  Saturday  was 
;^iog,65o,ooo,  and  the  total  actual  expenditure 
;^567>552.ooo.  so  that  the  payments  exceeded  the  solid 
receipts  by  about  ;^448,ooo,ooo.  The  deficiency  was 
made  good  to  the  extent  of  only  ;^46,ooo,ooo  by  the  sale 
of  Treasury  bills,  the  Government  having  relied  much 
more  upon  the  Ways  and  Means  advances  to  finance 
its  current  requirements,  and  the  nett  increase  this 
year  in  the  Ways  and  Means  floating  debt  is,  to  date, 
;^i 54,000,000.  In  addition,  ;^ri 43,000,000  has  been 
obtained  by  the  sale  of  National  War  Bonds, 
;^i7,6oo,ooo  has  come  from  War  Savings  certificates 
disposed  of  and  about  ;^i  16,000,000  has  been  supplied 
by  the  United  States. 


The  steadily  decreasing  production  of  gold  is 
exercising  the  minds  of  economists  on  both  sides  of  the 
Atlantic,  as  well  as  causing  no  small  concern  to  owners 
of  gold  mining  properties.  The  Transvaal  output, 
which  in  191 7  decreased  by  just  over  a  million, 
diminishes  at  a  greater  rate  practically  every  month. 
For  the  first  five  months  of  this  year  the  output  already 
shows  a  decrease  of  ;^i, 208,792,  the  total  being 
;;^i4, 988,704,  against  ^£^16, 197,496.  In  Rhodesia, 
West  Africa,  India,  Australia,  and  the  United  States 
the  production  tends  to  diminish,  except  as  regards 
those  properties  which  produce  gold  from  copper  ores. 
As  we  have  explained  before,  the  cause  of  the  decline 
is  that  the  price  of  gold  is  fixed  by  its  minting  value, 
while  the  cost  of  getting  It  out  of  the  mines  has  steadily 
increased  owing  to  war  conditions.  The  low-grade 
mines  were,  of  course,  the  first  to  feel  the  effect  of  the 
increased  cost  of  working,  and  some  of  them  have 
already  had  to  cease  operations.  The  richer  mines  have 
also  felt  the  effect,  large  blocks  of  lower  grade  ore, 
which  are  no  longer  capable  of  being  treated  at  a  profit, 
having  to  be  excluded  from  the  ore  reserves.  Thus  the 
productivity  of  the  richest  mines  has  decreased  with 
every  advance  in  the  cost  of  operation.  It  is  obvious 
that  unless  a  check  is  to  be  put  to  this  cost  of  production 
every  mine  must  eventually  become  unprofitable,  and 
if  that  stage  were  ever  reached  gold  would  inevitably 
be  demonetised,  since  its  value  would  be  increased 
beyond  the  mfnt  price.  One  of  the  first  suggestions 
made  to  remedy  this  state  of  affairs  was  that  the  gold 
mines  should  be  subsidised,  but  there  are  obvious 
objections  to  such  a  course  being  followed.     Another 


and  much  more  practical  suggestion  is  that  the  gold 
mines  should  receive  the  best  market  price  for  their 
product  instead  of  the  mint  price.  Most  of  the  neutral 
exchanges  stand  at  a  premium  of  about  30  per  cent,  in 
relation  to  sterling;  but,  of  course,  the  Government 
could  not  allow  the  gold  to  be  shipped  to  these  countries 
and  a  profit  on  exchange  be  made  by  the  gold  mining 
compiinies,  for  the  control  of  the  gold  would  be  lo.st 
to  this  country,  though'  our  exchange  position  would 
be  improved  thereby.  But  it  is  urged  that  since  the 
gold  mines  could  not  be  allowed  to  do  this,  they  should 
receive  a  price  from  the  Government  equivalent  to  what 
they  would  receive  if  there  were  no  restrictions  placed 
upon  them  in  regard  to  the  marketing  of  their  product. 
This  proposal  certainly  gets  to  the  root  of  the  gold 
mining  problem,  and  it  rnay  be  that  this  will  prove  to 
be  the  only  practical  solution  of  it.  Bankers,  as  a 
whole,  have  been  urging  upon  the  Government  for  some 
time  past  the  necessity  of  maintaining  the  gold  output, 
hut  some  economists  in  the  City  are  of  opinion  that  the 
supply  of  gold  is  already  sufficient  to  meet  require- 
ments, provided  steps  are  taken  to  reduce  the  enormous 
war  debts  as  rapidly  as  possible  after  the  conclusion 
of  peace  by  a  compounding  of  income-tax. 

This  difficulty  raises  a  most  ticklish  question,  and 
one  that  it  might  be  dangerous  at  present  to  attempt 
to  discuss  with  any  thoroughness ;  but  we  may  at  least 
admit,  if  we  do  not  emphasise  too  prominently,  the 
danger  lying  ahead.  It  is  a  danger  which  will  increase 
as  the  cost  of  the  war  mounts  and  the  world  becomes 
denuded  of  its  exchangeable  wealth  other  than  gold, 
therefore  it  may  be  necessary  for  the  Allies  of  the 
Entente  to  concert  measures  with  a  view  to  retaining 
the  gold  production  of  the  world  as  much  as  possible 
for  their  own  use  when  the  war  ends.  Above  all,  it 
may  be  necessary  to  combine  forces  so  that  the  output 
of  the  metal  may  be  prevented  from  dwindling  in  a 
manner  that  might  seriously  interfere  with  the  recupera- 
tive energies  of  the  exhausted  nations  when  again  at 
liberty  to  employ  themselves  in  developing  the  products 
of  civilisation  and  peace.  On  the  other  hand,  it  is 
just  possible  that  we  may  be  exaggerating  the  danger 
and  also  the  necessity  for  large  supplies  of  gold.  We 
have  had  a  feeling  ever  since  the  war  broke  out  that 
the  day  of  the  dominance  of  gold  was  at  an  end,  and 
for  many  a  long  day.  Mere  poverty  will  prevent  any 
of  the  nations  now  taking  part  in  the  world's  war  from 
being  in  a  position  to  spare  the  means  to  acquire  gold 
in  bulk  when  peace  comes  back.  We  shall  all  have 
to  make  use  of  paper  money  for  a  long  time  to  come, 
and  when  we  try  to  establish  a  solid  bimetallic  founda- 
tion on  which  to  base  our  paper  money,  that  foundation 


LLOYDS  BANK 
LIMITED 

HEAD  OFFICE :  71,  LOMBARD  ST.,  LC.  3. 


Colonial  i  Foreign  Department :  17,  GORNHILL,  E.C.  3. 

This  Bank  possesses  exceptional  facili- 
ties for  the  transfer  of  moneys  to  or 
from  France,  including  payments 
against  documents,  &c.,  in  connection 
with  its  French  Auxiliary, 

LLOYDS  BANK  (FRANCE)  AND 
NATIONAL  PROVINCIAL  BANK  (FRANCE)  LTD., 

of  60,  Lombard  Street,  E.G.  3  ;  Paris 
(3,  Place  de  I'Op^ra),  Biarritz,  Bordeaux, 
Havre,  Marseilles  and  Nice. 


570 


^be  investors'  IRcview^ 


June  15,  1918. 


ma)  have  to  be  silver — or  possibly  a  select  group  of 
products  condensed  in  an  "Index"  number.  It  is 
practically  silver  now  that  our  paper  money  is  gauged 
as  to  value  by.  That  is  the  only  metal  the  nations  of 
the  Entente  are  now  in  a  position  to  buy  in  quantity 
and  coin.  We  should  all  have  to  pay  a  premium  for 
the  yellow  metal,  and  it  might  be  a  ruinous  premium 
if  we  set  to  work  to  make  coins  in  it  now  in  large 
numbers.  And  there  is  another  point  of  view  still — if 
our  international  commerce  is  to  be  in  future  organised 
and  guided  by  committees  of  producers  and  merchants, 
so  that  it  does  not  run  into  floods  and  shallows  as  has 
hitherto  been  the  habit,  there  may  be  less  of  metal  of 
any  kind  required  with  which  to  balance  accounts 
between  customers  at  stated  periods.  The  trade  of  the 
world  may  come  to  be  conducted  much  on  tlie  lines  of 
the  London  Bankers'  Clearing  House,  and  no  gold  at 
all,  or  silver  either,  be  necessary  to  maintain  inter- 
change of  products  in  a  liquid  or  solvent  condition.  All 
that  lies  before  us  in  this  direction  is  something  of  a 
mystery,  but  enough  can  be  surmised  and  foreseen  to 
prevent  us  froip  becoming  unduly  alarmed  at  the 
prospect  of  a  shortage  of  gold,  or  from  rushing  in  to 
take  measures  in  order  to  prevent  that  shortage, 
measures  certain  to  prove  expensive  no  matter  with 
what  ingenuity  they  may  have  been  devised. 


the  least  connections  in  trade  and  advantage;  and  yet 
the  people  of  the  United  States  rose  to  that  suggestion 
as  to  no  other  that  I  made  in  that  address.  'ITiat  is  the 
heart  of  America,  and  we  are  ready  to  show  you  by 
any  act  of  friendship  that  you  may  make  possible  our 
real  feelings  towards  Mexico." 


Next  Tuesday  the  Chancellor  of  the  Exchequer  is 
to  ask  the  House  of  Commons  to  grant  him  another 
credit  of  ;i£J'5oo,oco,ooo.  The  last  one  was  for 
^600,000,000,  and  it  will  soon  be  exhausted,  but  the 
new  one  will  doubtless  be  as  readily  granted  as  all 
that  Have  gone  before.  There  is  no,  thought  of  grudg- 
ing the  money,  and  if  only  we  can  be  sure  that  it  was 
being  wisely  and  economically  spent  not  a  word  of 
grumbling  would  be  uttered.  As  it  is,  and  with  this 
addition  calculated  to  carry  us  on  to  the  first  half  of 
September,  the  House  of  Commons  has  voted  from 
first  to  last  ;^7, 342,000,000  for  the  war.  In  the  first 
eight  months  the  votes  were  ;^362,ooo,c)oo ;  in  the  year 
ended  March  31,  1916,  they  were  ;^'i, 420,000, 000;  and 
in  the  succeeding  3'ear  ;^2,oio,ooo,ooo ;  while  for  the 
past  year  the  votes  came  to  ;^2, 450,000,000.  Up  to 
date  this  year,  including  the  vote  to  be  passed  next 
week,  ;^i,  100,000,000  will  have  been  provided.  All 
that  is  not  debt  of  the  United  Kingdom,  but  the  mo.st 
sanguine  estimate  of  the  capacity  of  our  Allies  and 
dependencies  to  bear  their  part  does  not  warrant  our 
putting  the  amount  likely  to  fall  upon  the  British  tax- 
payer at  much  less  than  ;^6,ooo,ooo,ooq  when  the  war 
ends,  and  we  may  be  thankful  should  the  mass  be  no 
greater. 


Some  of  our  newspapers  are  disposed  to  sneer  in  a 
covert  way  at  what  they  call  President  Wilson's 
"Idealism."  It  seems  that  he  received  a  group  of 
Mexican  tourist  journalists  the  other  day  at  the  White 
House,  and  took  the  occasion  to  deliver  himself  on 
public  affairs.  The  speech  as  transmitted  by  cable  was 
unquestionably  a  remarkable  one,  the  sf>eech  no  doubt 
of  an  idealist,  but  an  idealist  of  practical  mind,  and  we 
might  say  a  good  deal  about  it  did  space  allow.  As  it 
is,  we  desire  more  particularly  to  draw  attention  to 
what  Mr.  Wilson  said  regarding  Russia.  "  Thp  other 
night  in  New  York,"  he  said,  "  at  the  opening  of  the 
campaign  for  funds  for  our  Red  Cross,  I  said  that  we 
meant  to  stand  by  Russia  just  as  firmly  as  we  would 
stand  by  France  or  England  or  any  other  of  the  Allies. 
It  was  not  an  audience  from  which  I  would  have  ex- 
pected an  enthusiastic  response  to  that.  It  was  rather 
too  well  dressed.  It  was  not  an  audience,  in  other 
words,  made  up  of  the  class  of  p>eople  who  would  have 
the  most  intimate  feeling  for  the  sufferings  of  the 
ordinary  man  in  Russia ;  but  that  audience  jumped  to 
its  feet  in  enthusiasm.  Nothing  that  I  said  on  that 
occasion  aroused  anything  like  the  enthusiasm  which 
that  single  sentence  aroused.  Now  that  is  a  sample. 
We  cannot  make  anything  out  of  standing  by  Russia 
at  this  time — the  remotest  of  European  nations  as  far 
as  we  are  concerned,  the  one  with  which  we  have  had 


Another  point  raised  by  the  President  was  the  relation 
of  the  United  States  to  the  rest  of  America,  and  in  this 
he  sought  to  give  a  new  orientation  to  the  Monroe 
Doctrine.  'ITiat  was  a  formula  designed  to  shut 
America,  as  it  were,  out  from  the  rest  of  the  world ;  but 
it  was  a  doctrine  adopted  without  the  consent  of  Latin- 
America,  and  as  the  President  well  expres-sed  it, 
Latin-America  took  the  attitude  of  the  United  States 
to  be,  "  We  are  going;  to  be  your  big  brother  whether 
you  want  us  to  be  or  not."  Nothing  in  the  Doctrine 
as  expounded  protected  Latin-America  from  United 
.States  aggression  in  the  Prussian  style  if  it  had  been 
so  minded,  consequently  the  United  States  was  dis- 
trusted and  looked  askance  at.  Mr.  Wilson  wants  to 
put  an  end  to  all  that.  He  wants  an  agreement  which 
will  give  "  a  common  guarantee  that  the  rights  of  all 
shall  be  respected,  so  that  if  any  one  of  us,  the  United 
States  included,  violates  the  political  independence  or 
territorial  integrity  of  any  of  the  others,  all  the  others 
will  jump  on  her."  "That  kind  of  agreement,"  he 
said,  "  will  have  to  be  the  foundation  of  the  future  life 
of  the  nations  of  the  world.  The  whole  family  of 
nations  will  have  to  guarantee  to  each  nation  that  no 
nation  shall  violate  its  political  independence  or  its 
territorial  integrity."  He  justly  described  this  as  the 
only  conceivable  basis  for  the  future  peace  of  the  world, 
and  he  wants  the  States  of  the  two  continents  of 
America  to  lead  the  way.  There  is  nothing  grotesque 
or  fanciful  in  an  idealism  of  this  kind,  but  it  requires  a 
degree  of  unselfishness  amongst  individuals,  and,  result- 
ing therefrom,  amongst  nations,  of  which  we  see  little 
evidence,  even  after  four  years  of  war,  amongst  our 
political  leaders.  Have  we  risen  to  the  height  of  this 
unselfishness  with  regard  to  "helping  Russia,"  for 
example?  Are  not  we  adjured  to  render  that  help  on 
the  ground  that  by  so  doing  we  shall  get  the  master- 
hold  on  Russia's  trade,  take  the  lead  in  her  after- 
development?    Our  idealism  is  still  of  the  earth  earthy. 


Although  the  results  of  the  Forestal  Land,  Timber 
and  Railways  Co.,  Ltd.,  last  year  fell  considerably  short 
of  those  for  1916,  the  directors  regard  them  as  highly 
satisfactory  when  the  abnormal  and  difficult  circum- 
stances under  which  the  business  has  had  to  be  carried 
on  are  taken  into  consideration.  Trading  profits 
amounted  to  ^1,148,000,  a  decrease  of  _£'823,ooo,  but 
y^i 2,000  less  at  _£"i 27,000  is  written  off  for  deprecia- 
tion, reserve  gets  ;^ioo,ooo  less  at  ;^i 50,000,  and 
excess  duty  requires  onjy  ;^20o,ooo  against  ;£^6oo,ooo. 
Consequently  the  nett  divisible  profit  comes  out 
;^"'292,ooo  less  at  ;^472,400,  which  allows  of  the  divi- 
dend of  12  percent,  on  the  preference  shares  and  18  per 
cent,  on  the  ordinary  being  repeated ;  but  last  year  the 
former  got  a  bonus  of  3  per  cent,  and  the  latter  9  per 
cent.,  making  15  percent,  and  27  respectively  for  igi6. 
The  carrv  forward  is  ;^8,6oo  higher  at  ^193,000,  and 
we  are  dispo.sed  to  agree  that  the  company  has  done 
remarkably  well  when  shipping-  and  other  difficulties 
are  allowed  for.  It  is  stated  that  the  elimination  of  all 
alien  enemies  from  the  staff  was  completed  during  the 
year,  and  no  doubt  this  tended  to  di.sorganise  the  busi- 
ness to  some  extent ;  but  we  have  no  doubt  that  the 
shareholders  will  cheerfully  accept  the  sacrifice. 
Changes  in  the  balance-sheet  are  quite  unimportant, 
but  the  position  looks  thoroughly  sound. 


Provision  for  special  taxation  probably  accounts  in 
the  main  for  the  decrease  of  ;^6i,ooo  in  the  trading 
profits  of  Pease  and  Partners,  Ltd.,  for  the  year  to 
April  30.  Interest  brought  in  just  double  at  ;^7.3'000' 
and  the  nett  profit  of  ;^464,ooo  is  only  ;^26,ooo  lower, 
while  ;^i  1,000  more  at  ;^95,ooo  was  brought  in. 
.'Allowance  for  depreciation  is  ;^2 1,000  less  at  £27,300, 


June  15,  1918. 


Zbc  Jnveetore'  IReview. 


571 


and  only  ^"8o,ooo  against  ;£,'ioo,ooo  is  placed  to 
reserve,  but  ;£r5o,cxxi  is  again  set  aside  to  provide  for 
jx>stponed  renewals  and  ^'10,000  (new)  is  appropriated 
for  tile  provision  of  cottages  for  employees  who  have 
been  permanently  disabled  on  active  service.  The  divi- 
dend of  17J  per  cent,  is  repeated  on  the  ordinary  and 
deferred  shares,  and  the  balance  forward  is  increased 
by  7^10,000  to  ;^"io4,5oo.  A  modest  capitalisation  of 
reserves  Is  proposed,  the  total  sum  involved  being 
^,230,000,  which  give  the  ordinary  shares  a  bonus  of 
;£^2  and  the  deferred  £1  per  share.  In  other  words, 
holders  of  every  five  ordinary  or  ten  deferred  will 
receive  one  new  fully  paid  ;^io  share.  It  is  part  of 
the  arrangement  that  the  ordinary  and  deferred  shares 
should  be  consolidated,  and  we  do  not  suppose  that  the 
proposal  will  meet  with  very  serious  opposition,  and  it 
will  be  a  decided  advantage  to  have  only  one  class  of 
share.  The  directors  also  wished  to  take  the  oppor- 
tunity to  split  the  shares  into  the  more  convenient 
denomination  of  £1,  but  the  Treasury  refused  its  con- 
sent !  Could  anything  more  childishly  ridiculous  be 
imagined  ? 


VVm.  Cory  and  Son,  Ltd.,  as  might  have  been  ex- 
pected, did  extremely  well  in  the  year  to  March  31,  the 
nett  profit  being  _£r45,oc)o  larger  at  ^^^493, 000,  while 
the  divisible  balance,  after  providing  for  debenture 
interest,  is  ;^87,ooo  up  at  ^^586,600.  Out  of  this 
;^90,ooo  (against  ;^ioo,ooo)  is  placed  to  reserve, 
raising  it  to  ;^65o,ooo,  and  ;^6o,ooo  (new)  is  added 
to  the  insurance  fund,  while  the  staff  pension  fund  gets 
;£,"25,cxx>  against  ;^io,ooo.  The  dividend  is  again  10 
per  cent.,  less  tax,  but  the  bonus  is  doubled  at  10  per 
cent.,  tax  free,  and  the  balance  forward  is  increased 
^.V  ;^4>ooo  to  ;^i 35,000.  The  company  is  in  an 
'enormously  strong  financial  position,  and  the  changes 
in  the  balance-sheet  need  not  detain  us.  It  is  stated 
that  war  conditions  continue  to  make  it  impossible  to 
maintain  the  properties  and  plant  in  the  usual  state  of 
repair,  but  ample  provision  has  been  made  for  deferred 
work.  During  the  year  the  business  of  Mann,  George 
and  Co.  and  R.  and  J.  H.  Rea  have  been  acquired,  and 
It  is  proposed  to  increase  the  capital  by  the  creation 
of  2,000,000  ordinary  shares  of  -£i  each,  but  no  steps 
will  be  taken  at  present,  owing  to  existing  restrictions 
to  issue  them. 


We  have  already  dealt  with  the  principal  figures  of 
J.  Lyons  and  Co.,  Ltd.,  for  the  year  to  March  31,  and 
the  complete  report  now  available  adds  nothing  to  the 
information  published  on  these  points.  It  contains, 
however,  one  or  two  other  interesting  items  of  news. 
A  controlling  interest  has  been  acquired  in  the  old- 
established  tea  business  of  W.  H.  and  F.  J.  Horniman 
and  Co.,  Ltd.,  and  the  business  of  Black  and  Green, 
Ltd.,  of  Manchester,  has  also  been  purchased.  These 
arrangements,  it  is  stated,  should  prove  a  considerable 
advantage  in  effecting  economies  in  the  sale  and  dis- 
tribution of  tea  by  the  companies.  A  contract  has  also 
been  entered  into  for  the  acquisition  of  an  important 
property  adjoining  the  Trocadero  and  the  Coventry 
Street  Corner  House.  To  carry  out  these  schemes  it 
•will  be  necessary  to  increase  the  capital  of  the  company, 
and  resolutions  for  this  purpose  will  be  submitted  at 
■the  meeting  next  week. 


It  is  now  announced  that,  with  the  approval  of  the 
Government,  terms  have  been  arranged  for  the  amal- 
gamation of  British  Dyes,  Ltd.,  and  Levinstein,  Ltd. 
This  step  has  been  rendered  particularly  desirable  at  the 
present  time  owing  to  the  serious  shortage  of  materials 
for  plant  extensions,  so  that  the  complete  co-operation 
between  the  dye-making  interests  is  of  vital  importance 
in  order  to  make  the  fullest  use  of  existing  resources, 
and  place  the  industry  as  rapidly  as  possible  on  a  secure 
foundation.  Terms  have  been  virtually  agreed  as  to  the 
basis  on  which  the  assets  to  be  taken  over  shall  be 
valued,  and  goodwill  is  to  be  paid  for  in  deferred  .shares, 
of  which  55  per  cent,  will  go  to  British  Dyes  and  45 
per  cent,  to  Levinstein.     Complete  details  have  not  yet 


been  worked  out,  but  the  combine  ought  to  be  powerful 
enough  to  place  the  industry  in  a  position  of  inde- 
pendence as  regards  foreign  competition  by  the  time 
this  is  likely  to  develop  into  a  formidable  factor. 


The  report  of  the  Central  Mining  and  Investment 
Corporation  for  191 7  shows  a  fresh  but  slight  setback 
in  profits,  which  was  really  to  be  expected  in  view  of 
the  decreasing  profitableness  of  gold  mining  under  war 
conditions.  The  total  is  ;£,'349,090,  a  decrease  of 
;£,'i7,303;  the  dividend  Is  maintained  at  5  per  cent.,  tax 
free,  the  reserve  again  gets  ^"150,000,  while  the  carry- 
forward is  raised  from  ;£^70,863  to  ;^'99)953.  Shares 
and  interests  stand  at  ;^6, 122,400  in  the  balance-sheet, 
.a  decrease  of  ;£^255,8oo,  which  is  partly  accounted  for 
by  realisations  at  substantial  profits  and  by  depreciation. 
;\  decrease  in  the  holding  of  British  Treasury  bills  is 
more  than  offset  by  an  increase  in  other  Government 
securities  and  in  cash  assets  and  the  reduction  of 
liabilities  to  creditors.  Options  have  been  secured  on  a 
considerable  number  of  shares  in  the  Rhodesia  Broken 
Hill  Development  Co.,  the  exercise  of  which  will 
depend  upon  the  results  of  an  examination  of  the  pro- 
perty now  being  carried  out.  Interests  in  West  Africa 
have  been  reduced  by  the  realisation  of  the  holding  in 
Fanti  Consolidated  Mines  and  the  liquidation  of  the 
West  African  Mines.  Divisible  profits  are  now  being 
earned  by  the  Trinidad  Leaseholds  Co. ,  in  which  the 
Corporation  has  a  controlling  interest.  The  most  in- 
teresting paragraph  In  the  report,  however,  is  that  in 
which  reference  is  made  to  the  decrease  in  the  Wit- 
watersrand  gold  output.  Last  year  the  falling  off  was 
not  very  great,  but  the  danger  of  a  further  diminution 
— already  a  fact — is  emphasised.  The  directors  point 
out  that  so  far  the  question  of  avoiding  it  Is  unsolved, 
but  add  that  steps  have  been  taken  to  bring  to  the 
notice  of  the  authorities  the  whole  question  of  the 
handling  and  realisation  of  the  output,  particularly  in 
regard  to  its  value  from  the  standpoint  of  exchange. 


New  Zealand. 


A  Wealthy  Country,  Splendid  Climate,  Fertile 
Soil,  Plenty  of  Water. 

An  Ideal  Country  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  'with  but  a  million  populatioa,  has  an 
annual  export  of  raw  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  in  COAL,  IRON,  TIMBER, 
GUM,  GOLD  AND  SILVER.  Total  jield  oi  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  have  been  advanced 
by  Govemmentto  Farmers  and  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 

The  Railways,  3,000  miles.  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State. 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  new 
country.  New  Zealand  ofiers  solid  advantages. 
Excellent  Steamship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw  SaviU  and  Albion  Com- 
pany, Limited,  Ne^v  Zealand  Shipping  Company, 
Limited,  and  the  Federal  and  Shire  Lines.  < 


Full  information  is  supplied  fiee  by 

THE  HIGH  COMMISSIONER  FOB  NEW  ZEALAND. 

413-416,  STRAND,  W.C  2. 


573 


XTbe  investors'  IReview. 


June  15,  1918. 


As  we  have  already  pointed  out,  the  reduction  in  output  If 
is  universal;  and  if  the  closing  down  of  more  low-grade 
mines  is  to  be  avoided  steps  will  have  to  be  taken  to 
remedy  the  present  situation  very  soon. 


In  renewing  their  subscriptions  old  clients  of  The 
Investors'  Review  sometimes  send  us  notes  of 
appreciation  cheering  and  precious  to  one  now  old  and 
nigh  worn-out  in  their  service.  Here  is  a  note  that 
came  to  us  with  a  cheque  in  renewal  at  the  beginning 
of  the  month,  for  which  we  cordially  thank  the 
writer  : — "  Please  allow  me  to  express  my  appreciation 
of  the  value  of  The  Investors'  Review,  which  grows 
with  the  growing  years.  I  cannot  sufficiently  thank 
you  for  your  sound  and  sobering  views  on  things 
financial  when  other  guides,  or  should-be  guides,  seem 
blinded.  Yours  is  the  only  financial  journal,  so  far  as 
3  know,  which,  for  instance,  gave  warning  of  the 
danger  in  the  Rubber  share  market.  I  don't  think  you 
have  been  at  all  too  pessimistic.  The  far-off  pros[>ects 
may  Ije  bright  enough,  but  the  immediate  future  .seems 
blacker  than  even  you  have  painted  it."  Always  our 
purpose  has  been,  and  is,  to  merit  such  praise,  for 
always  our  effort  is  to  reach  the  just  opinion,  un- 
trammelled by  any  self-interest  or  effort  to  woo  the 
favour  of  any  one  party  among  the  players.  And  im- 
partiality, the  absence  of  self-interest  or  parti  pris  was 
never  more  needed  than  it  will  be  in  the  times  now 
at  hand.  We  thank  the  old  subscriber  for  his  words  of 
good  cheer. 

A  lot  of  dirty  linen  was  washed  at  the  meeting  of 
Schweppes,  Ltd.,  this  week.  The  company  ought  to 
be  one  of  the  most  prosperous  in  the  country,  in  spite 
of  its  over-capitalisation,  but  it  does  not  seem  to  be 
understood  that  the  dividend  on  the  deferred  shares  is 
cumulative,  which  means  that  until  their  arrears  of 
something  like  90  or  100  per  cent,  are  paid  off  it  is 
impossible  that  the  ordinary  dividend  can  be  increased. 
This  fact  is  so  little  known  that  we  have  always  had  a 
suspicion  that  if  the  price  of  the  deferred  could  only  be 
knocked  down  to  a  few  pence  or  shillings  there  are 
people  who  might  pick  up  nearly  the  whole  lot  for  an  old 
song  and  firmly  control  the  entire  business.  But  the 
worm  turns  at  last,  and  Mr.  Walter  Harris,  C.M.G. 
(one  of  the  managing  directors),  rounded  in  truly 
brutal  fashion  on  those  two  gorgeous  aldermen  of  the 
City  Corporation,  Sir  Wm.  Treloar  and  Sir  Wm. 
Dunn  (both  ex-Lord  Mayors),  with  a  gentleman  called 
Sir  Ernest  Clarke,  who  was  described  as  having  no 
mind  of  his  own  apart  from  the  other  two  directors 
already  mentioned.  Ultimately  it  was  decided  that 
the  Public  Trustee — in  his  capacity  as  the  largest 
debenture-holder — Sir  Ivor  Phillips,  and  Mr.  C.  Wil- 
liamson Milne  should  appoint  an  independent  com- 
mittee of  five  shareholders  to  go  into  the  whole  of  the 
transactions  of  the  company.  If  the  committee  does 
its  duty  faithfully  and  well  there  ought  to  be  some 
interesting  revelations,  for  we  could  never  understand 
how  such  a  magnificent  business  did  not  achieve  the 
prosperity  it  deserved. 


Mr.  Illingworth's  statement  on  the  work  of  the  Post 
Office  was  as  interesting,  if  not  quite  so  elaborate,  as 
usual,  but  he  explained  that  a  great  deal  in  connection 
with  war  services  could  not  at  present  be  made  public, 
and  when  it  was  divulged  in  the  future  it  would  be 
found  that  the  Post  Office  had  been  of  immense  help 
both  to  the  naval  and  military  forces.  We  always 
like  to  hear  about  the  correspondence  with  the  troops 
serving  abroad,  and  it  appears  that  to  France  alone 
the  weekly  mail  amounts  to  10  million  letters  and 
350,000  parcels,  but  at  Christmas  last  it  rose  to  20 
million  letters  and  four  million  parcels,  while  owing  to 
the  excellent  arrangements  made  very  few  were 
delivered  late.  Last  year  the  number  of  letters  to 
prisoners  of  war  was  8g,ooo,  and  of  parcels  85,000  per 
week,  and  the  figures  have  since  risen  to  116,000  and 
926,000  respectively.  There  are  now  25,000  fewer  people 


employed  in  Post  Office  work  than  in  pre-war  days,  and 
the  services,  which  are  conducted  under  great  diffi- 
culties, have  necessarily  suffered,  although  not  to  the 
extent  that  might  have  been  expected.  War  tonuses 
granted  to  the  staff  already  cost  ;£i"6,ooo,ooo  per 
annum,  and  are  likely  to  cost  much  more  before  long. 
We  are  sorry  to  learn  that  the  P.O.  tunnel  connecting 
the  main  railway  termini  cannot  be  completed  until 
after  the  war  owing  to  the  lack  of  materials.  It  would 
Ix;  so  helpful  in  facilitating  business  that  we  think  it 
ought  to  have  been  accomplished ;  we  know  that 
infinitely  less  necessary  work  has  been  done,  quite 
apart  from  the  thousands  of  grotesque  mistakes  that 
have  been  committed. 


The  "Objects"  of  Limited  Companies 


Till  the  war  stopped  company  promotion  we  were  all  familiar 
with  the  ordinary  kind  of  prospectus,  which  purported  to  say 
that  the  company  had  a  very  large  number  of  "objecL"!,"  bear- 
ing little  or  no  relation  to  each  other,  and  certainly  none  to  the 
company's  name.  Thus  there  might  be  a  "  Netting  Hill  Milk 
Supply  Association,  Ltd.,"  the  first  "object"  being  stated  to- 
be  to  take  over  Mr.  John  Smith's  retail  dairy  in  that  district, 
but  subsequent  clauses  bearing  equally  explicitly  that  other 
"objects"  were  to  run  ocean  steamers  and  railway  trains,  to 
give  guarantees,  and  to  do  underwriting  business  of  all  kinds. 
Finally,  according  to  the  later  forms,  the  whole  thing  wound 
up  with  a  general  clause  to  the  effect  that  each  "object"  was 
totally  independent  of  all  the  others,  that  there  was  no  leading 
object,  and  none  subsidiary,  but  that  each  was  to  be  as  im- 
portant as  if  it  had  been  the  only  object,  and  that  there  was  to 
be  no  restriction  or  fetter  read  in  from  the  name  of  the  company 
or  by  confining  its  operations  to  the  United  Kingdom  or  to  the 
British  Empire. 

The  idea  underlying  this  kind  of  memorandum  of  association 
is  that  the  Netting  Hill  Milk  Supply  Co.  might,  in  fact,  devote 
its  funds  and  energies  to  underwriting  loans  for  the  Chinese 
Empire.  That  might  be  a  somewhat  extreme  instance,  but  in 
principle  it  really  goes  no  further  than  actually  happened  in  a 
recent  case  which  went  to  the  House  of  Lords,  where  strong  com- 
ments were  made  on  thi.s  whole  method  of  doing  business.  In 
that  case  a  company  was  registered  to  carry  on  rubber  collec- 
tion in  British  Guiana,  but  other  objects  (expressly  non-sub- 
sidiary) were  company  promotion  anywhere  in  the  world,  no 
matter  what  the  nature  of  the  business  might  be,  and  stocks 
jobbing.  The  company  undertook  an  underwriting  liability  of 
;f8,6oo,  and  it  has  been  held,  very  unwillingly,  that  that  obliga- 
tion was  valid.  The  underwritten  company  happened  to  be  a 
rubber  company  in  Cuba,  but  it  would  have  been  all  the  same 
if  it  had  been  a  bank  in  Timbuctoo. 

This  sounds  like  a  farce,  and  so  in  a  sense  it  is.  But  two- 
things  may  be  said.  There  is  a  reason  at  the  bottom  of  it ;  and 
any  legislative  remedy— which  is  proposed — may  produce  even 
worse  results. 

It  is  quite  clear  that  a  great  many  of  the  so-called  ''objects" 
are  not  objects  at  all,  but  merely  powers  or  methods  by  which 
the  true  "object"  is  to  be  reached.  Thus  a  drapery  company 
states  as  two  of  its  objects  to  accept  bills  and  engage  shopmen. 
This  has  originated  in  lawyers'  fears  that,  if  some  of  these 
things  are  not  set  forth  as  objects,  it  will  be  found  that  the 
company  cannot  do  them  at  all.  The  giving  of  guarantees  is  a 
good  case  in  point. 

Two  remedies  are  proposed.  It  is  said  in  the  Hotise  of  Lords. 
that  such  companies  do  not  comply  with  the  law,  and  that  the 
registrar  of  joint-stock  companies  ought  to  refuse  registration. 
Then  the  matter  would  reach  the  Law  Courts  in  an  appeal  from 
his  refusal.  That  would  cause  delay,  which  might  be  very 
seriously  inconvenient.  There  was  also  a  clear  indication  that 
there  will  be  legislative  interference.  One  of  the  law  lords  Is 
also  on  the  Committee  as  to  amendments  in  company  law,  and' 
he  is  to  take  care  that  that  Committee  Jguts  on  the  screw  in  two 
ways.  One  is  to  strengthen  the  requirements  of  the  law  to  the 
effect  of  really  defining  the  "object"  of  the  company,  so  as  to 
put  an  end  to  the  present  practice,  which  was  said  to  have 
reached  "  a  point  at  which  the  fact  was  that  the  function  of  the 
memorandum  was  taken  to  be  not  to  specify,  not  to  disclose,  but 
to  bury  beneath  a  mass  of  words  the  real  object  or  objects  of  the 
company,  with  the  intent  that  every  conceivable  form  of  activity 
should  be  found  included  somewhere  within  its  terms."  The 
other  suggestion  is  that  the  registrar's  certificate  of  incorpora- 
tion should  cease  to  be  absolutely  conclusive  to  the  effect  that  all 
requirements  of  the  law  have  been  complied  with.  This  points 
to  a  very  great  danger,  for  it  would  just  mean  this,  that,  after 
years  of  trading,  it  might  be  found  that  the  company  had 
never  been  validly  incorporated,  that  there  was  not  limited 
liability,  and  that  innocent  shareholders  were  liable  to  their  last 
penny  for  the  company's  whole  obligations. 

We  are  not  convinced  that  there  is  really  any  serious  griev- 
ance at  present  existing.  Nor  are  we  satisfied  that  any 
remedy  may  not  create  a  grievance.  But  we  are  strongly  of 
opinion  that  anything  which  throws  doubt  on  the  limitation  of 
liability  will  be  highly  pernicious,  and  should  not  be  allowed. 


June  15,  1918. 


^be  Jnvestors'  IReview. 


573 


By-the-Way  War  Notes. 

\ot  much  need  be  said  this  week  about  the  progress  of  the 
conflict,  at  any  rate,  not  in  detail.  It  goes  on  in  a  high  degree 
successfully  from  the  essential  point  of  view,  the  destruction  of 
the  trained  German  serfs.  It  is,  indeed,  the  longest  and  most 
heroic  fight  of  which  the  world  has  record,  for  it  exceeds  in 
murderousness  even  the  prolonged  struggle  around  Verdun. 
Day  after  day  and  night  after  night  it  goes  on  unceasingly  ou 
that  front  between  the  Oise  and  the  Marne.  The  enemy  began 
the  fight  with  an  overwhelming  superiority  of  numbers  at  the 
selected  points  of  attack,  and  by  driving  his  pawns  forward  at 
these  points  he  made  a  certain  amount  of  progress,  especially  at 
first.  As  General  von  Stein,  the  German  War  Minister,  boasts — 
exaggerating  every  success  to  keep  alive  the  spirit  of  the  brute 
in  the  German  people — many  troops — and  civilians — were  cap- 
ftured,  and,  "above  all,  large  quantities  of  war  material  and  pro- 
visions, all  at  the  beginning.  So  the  German  Minister's  address 
-on  the  army  estimates  was  pitched  high  in  brag,  and  is  worth 
study  as  illustrating  the  unchanging  character  of  German  auda- 
city in  falsehood.  General  Stein  regards  "  our  incomparable 
Army"  with  "gratitude  and  admiration."  It  is  "Conscious 
of  its  strength,"  he  proclaims,  and  therefore  he  "  looks  forward 
to  the  issue  of  the  struggle  with  complete  confidence."  That  is 
all  right  and  as  it  should  be,  for  we  want  them  to  be  slain. 
But  he  could  not,  with  all  his  arrogance  in  assumption,  brag 
that  the  German  hordes  had  broken  up  a  single  one  of  the  Allied 
armies.     They  face  the  foe  still. 

From  all  frontiers  General  Stein  none  the  less  boldly  brings 
.good  news,  positive  or  negative,  and  boasts  among  other  won- 
ders of  what  Germany  with  her  Turkish  allies  have  done  at 
Batum,  Erivan,  and  Kars,  but  for  all  his  swagger  he  is  obliged 
to  admit  that  after  almost  four  years  of  incessant  murdering  the 
enemy  is  not  yet  prepared  for  a  peace  of  the  German  kind. 
That  at  least  is  truth  without  varnish,  and  an  admission  by  the 
«nemy  that  he  is  foiled.  No,  we  are  not ,  yet  ready  for  his 
"  peace,"  never  shall  be. 

Our  true  attitude,  the  attitude  of  the  Allies,  was  Impres- 
sively set  forth  by  Mr.  Lansing,  Secretary  of  State  in  President 
Wilson's  Cabinet,  in  an  address  he  delivered  on"  receiving  the 
'honorary  degree  of  Doctor  of  Laws  at  Union  College,  Schenec- 
tady. Once  more  he  defined  the  attitude  and  aims  of  the 
American  people — of  all  the  Allies.  He  emphasised  the  deceit 
-with  which  the  machinations  of  the  enemy  were  hidden  while 
his  preparations  were  going  on  for  launching  this  devastating 
pestilence  of  a  world  war  in  furtherance  of  a  demented  ambition 
bred  of  ignorance  and  pride.  We  were  all  deceived  by  our  ovim 
guilelessiiess.  "We  admit,"  said  Mr.  Lansing,  "that  we  have 
heen  dupes  of  the  military  clique  of  Berlin,  because  dishonesty 
of  this  sort  seemed  to  us  inconceivable  in  these  days  of  inter- 
national honour  and  Christian  civilisation."  "  But,"  he  went 
on,  "  I  believe  the  nations,  and  I  am  certain  that  the  United 
States  will  never  again  be  caught  in  a  net  of  duplicity  equal  to 
that  which  was  spread  all  over  the  world  by  the  German  Gov- 
ernment. We  have  learned  our  lesson.  It  has  cost  us  dear,  biit 
we  will  never  have  to  learn  it  again." 

Behold  here  the  spirit  in  which  the  Allies  fight  on  and  endure 
disappointments,  reverses,  postponement  of  hopes,  losses  of  all 
kinds.  We  are  all  confident  that  the  war  is  not  at  an  end,  be- 
cause we  have  resolved  that  it  shall  continue  until  our  purpose 
of  deliverance  has  been  fulfilled.  General  Stein  and  his  fellow- 
betrayers  of  humanity  may  be  quite  sure  that  the  fight  will  have 
to  go  on  and  on  until  the  German  race  is  reduced  to  impotence. 
Even  if  the  savage  hordes  reach  Paris  the  war  will  continue. 
They  have  sought  destruction  and  it  will  be  theirs  in  ample 
measure. 

That  is  what  the  fighting  is  now  doing — destroying  the  enemy. 
All  accounts  agree  that  the  destruction  of  German  "  gun-fodder  " 
in  this  war  is  enormous,  if  not  unprecedented.  Natutally 
General  Stein  says  nothing  about  that,  but  it  is  the  one  sure 
proof  we  have  that  we  are  succeeding,  and  the  far-seeing,  pru- 
dent skill  with  which  the  Allied  armies  are  being  handled  so  as  to 
«;onomise  our  losses  in  men  increases  our  confidence.  Never  has 
♦here  been  a  campaign  conducted  with  such  trained  ability,  reso- 
lution, and  high  courage  as  that  now  raging  in  France  under 
the  supreme  guidance  of  General  Foch,  and  as  one  watches  one 
can  see  that  he  is  progressing  with  a  sure  step  towards  victory. 

The  German  War  Minister  declares  that  the  British  and 
Trench  have  used  up  their  reserves.  "  Great  parts  of  the 
British  Army  have  been  beaten,"  he  told  the  Reichstag. 
"  General  Foch's  so-called  Army  of  Reserve  now  exists  no 
■more."  Does  he  really  believe  all  that,  or  that  the  British  divi- 
sions are  exhausted.  We  hope  he  does,  for  that  may  increase 
the  recklessnfess  of  the  German  attack. 

Whether  that  attack  is  directed  towards  Paris  as  now,  or 
"whether  it  will  break  out  at  some  other  points,  we  cannot  tell. 
In  the  sense  of  this  ignorance  of  German  designs  the  "  initia- 
tive," as  it  is  called  by  our  war  interpreters,  is  with  the  Prus- 
sian, but  in  all  other  respects,  in  the  heroism  of  the  fighting,  in 
the  husbanding  of  the  men,  and  in  the  manoeuvring  to  outwit 
or  circumvent,  the  Germans  are  our  inferiors,  and  grow  more  so 
as  their  destruction  proceeds.  One  has  but  to  look  at  the  posi- 
tion of  the  German  armies  thrust — one  might  almo.st  say  jammed 
— into  the  bend  or  "  salient  "  formed  by  their  advance  across  the 
Isle  de  France  and  Picardy  to  understand  that  desperation  ia 
spurring  on  Ludendorff  and  his  generals  to  take  all  risks  in 
order  to  force  a  decision  soon.  As  we  said  weeks  ago,  the  spur 
behind  prodding  them  on  is  German  misery  and  impending 
famine.  There  lies  the  real  "  initiative."  The  doom  of  Heaven 
has  gone  forth  against  the  inhuman  despoilers,  and  gives  them 


no  choice  but  to  hazard  the  life  of  the  race,  of  the  last  man,  in 
trying  to  snatch  some  semblance  of  victory,  in  the  hope  thus  to 
escape  execution  of  the  sentence.  But  the  Americans  have  come. 
More  than  700,000  of  them  are  in  I'rance  eager  for  the  fray. 

Apparently  we  British  are  taking  but  a  small  share  in  this 
heroic  battle.  Sir  Douglas  Haig's  daily  bulletins  refer  merely 
to  petty-looking  raids  up  North.  We  are,  as  it  were,  marking 
time  there,  and  exceprt  in  the  neighbourhood  of  Rheims,  where 
some  of  our  men  are  malting  a  noble  stand,  and  in  our  splendid 
Air  Service,  which  is  working  as  one  man  with  the  matchless 
airmen  of  France,  we  seem  to  be  taking  but  little  actual  share 
in  the  conflict.  That  is  only  as  it  looks  on  the  surface,  and  our 
apparent  inaction  is  probably  an  outcome  of  the  plans  arranged 
with  the  Generalissimo.  Our  troops  are  being  reserved  for  the 
masterstroke  destined  to  fall  when  General  Foch  sees  the  time 
come.  But  we  never  know  the  moment  when,  discerning  the 
threatening  danger,  the  German  swarms  and  their  poison 
and  fire  will  not  again  be  flung  against  us  in  the 
North,  intent  upon  making  one  more  dash  for  those 
coveted  Channel  ports.  As  the  prospect  of  entering 
Paris  becomes  more  remote,,  another  carrot  will  have  to 
be  dangled  before  the  nose  of  the  German  ass,  and  "  the  ports, 
the  ports,"  are  alone  available.  So  our  turn  to  face  the  music 
may  come  any  day,  and  if  not  we  stand  ready  to  intervene  and 
help  France  to  clinch  the  victory.  Meanwhile,  let  us  possess  our 
souls  in  patience,  and  be  of  good  courage ;  Germans  are  being 
destroyed  day  and  night,  destroyed  in  droves  and  heaps ;  and 
that  is  the  one  sure  preliminary  to  a  durable  world  peace. 

Other  method  there  is  none ;  for  when  we  turn  to  the  utter- 
ances of  German  professors  and  newspaper  oracles,  we  find  the 
same  spirit  of  arrogance  still  dominant  among  them,  and  all 
the  country  seemingly  still  in  unison  even  at  this  late  day  with 
the  lusting  greed  of  the  Tirpitzes  and  Steins  and  Bernhardis; 
with  the  whole  ruck  of  mad  Pan-Germans  who  believe  themselves 
to  be  the  select  of  the  earth  and  destined  to  rule  it.  They  continue 
to  dictate  their  terms  of  peace  to  a  conquered  England  and  a 
France  bled  white.  That  being  so,  what  can  we  do  but  fight 
on? 

On  the  other  parts  of  the  front  events  are  always  happening, 
but  none  of  sufficient  importance  to  withdraw  the  eyes  of  man- 
kind away  from  the  fate-laden  struggle  in  France.  The  Greeks  are 
making  themselves  felt  against  the  Bulgarians  in  Macedonia,  the 
Italians  are  more  than  holding  their  own  against  the  de- 
moralised Austrians  in  Northern  Italy,  and  Italian  water  and 
aircraft  are  taking  toll  of  the  Austrian  fleet  with  a  dashing 
bravery  fascinating  to  look  upon.  But  in  Mesopotamia  and 
Palestine,  with  the  hot  weather  now  upon  them,  comparatively 
little  can  be  done  by  our  Armies,  and  it  would  be  a  mistake  to 
call  upon  them  for  great  exertions,  because  their  ta.sk  is  every 
day  being  lightened  by  what  is  going  on  in  France. 

In  Russia  the  position  seems  to  become  steadily  darker  for  the 
realisation  of  Pan-German  dreams.  They  are  busy,  these  Pan- 
Germans  and  their  agents,  totally  regardless  of  all  promises  and 
treaty  stipulations,  in  expending  their  sway  over  that  land,  steal- 
ing as  they  go  deeper  and  deeper  into  the  heart  of  Russia,  and 
everywhere  succeeding  with  that  doltish  infallibilTty  we  now 
look  for  in  German  political  action,  in  turning  everyone  against 
them.  Russia  is  coming  to  her  senses,  and  will  neod  time  to 
recover.  Meanwhile,  the  Germans  are  affording  the  world  a 
most  instructive  illustration  of  the  lengths  to  which  abandoned 
human  nature  may  go  in  crime. 

Tirpitz  has  been  predicting  a  great  assault  by  the  German 
fleet  or  fleets  in  the  North  Sea  and  Mediterranean.  We  hope  he 
is  a  true  prophet.  Nothing  would  suit  the  Allies  better.  Germany 
has  grabbed  the  Russian  Black  Sea  fleet  too,  and  Press  "  kites" 
warn  us  to  look  for  it  in  the  ^2gean.     We  dare  say. 


The  Standard  Bank  of  South  Africa  has  issued  an  e.xcellent 
map  of  the  sub-continent,  with  the  towns  in  which  it  is  repre- 
sented underlined  in  red.  There  seem  to  be  very  few  places 
where  the  bank  has  not  a  branch  or  an  agency. 


Men    Exempted 
or  Ineligible 

should  provide  for  their  future 
and  that  of  their  dependants 
by  taking  up  an  Endowment 
Assurance    now   with    the 

SCOTTISH  WIDOWS  FUND 

Founded  1815. 

FUNDS:    22  MILLIONS.  CLAIMS  PAID:    47  MILLIONS. 

The   largest   British    Mutual   Life   Offloe. 

Send  for  FREE  BOOKLET. 

Head  Office :  9,  St.  Andrei  Square,  Edinburgh. 

(G.   J.    LIDSTONE.    Manager  and  Actuary.) 

London  Offices:  28,  Cornhill,  E.G.  3,  and  17,  Waterloo  Place,  S.W.  I. 


574 


tTbe  Jnvestors'  IRevtew. 


June  15,  1918. 


American  Business  Notes. 


Although  people  here  may  not  now  have  so  great  a  direct 
stake  in  the  fortunes  of  the  United  SUles  railways,  there  is 
still  not  a  little  to  interest  and  instruct  in  their  reports.  Ihe 
New  York  Central,  for  instance,  one  of  the  largest  properties  in 
the  States,  if  we  include  therein  all  its  offshoots  and  dependen- 
cies, earned  gross  last  year  $216,268,000,  or  /43,254,<xx).  The 
nett  reveniie,  after  meeting  everything  except  taxes,  was 
$62,670,000,  or  ;fi4,532,ooo.  But  the  most  interestitig  thing 
about  this  great  corporation  is  not  the  magnitude  of  its  gross 
and  nelt  income,  but  the  way  in  which  it  manages  to  survive 
and  to  earn  a  handsome  nett  revenue  amid  the  changed  con- 
ditions under  which  all  business,  and  not  least  railroad  busi- 
ness, has  to  be  conducted  in  America.  Working  expenses,  for 
example,  last  year  were  71.02  per  cent,  of  the  gross  receipts, 
whereas  in  the  previous  year  the  proportion  was  64.36  per 
cent.  So  rapidly,  indeed,  did  the  working  charges  advance 
last  year  that,  although  the  gross  earnings  were  $14,682,000 
higher  than  in  the  previous  calendar  year,  the  nett  revenue 
was  $9,177,000  smaller.  What  are  called  "transportation"  ex- 
penses alone  rose  from  $64,950,000  to  $83,627,000.  Taxes 
inevitably  rose,  too,  and  took  $11,240,000,  compared  with 
$8,482,000  in  the  preceding  year. 

It  followed  that  the  nett  revenue  from  all  sources  was 
$11,937,000  less  from  the  working  of  the  property.  There  was 
also  a  much  smaller  revenue  from  outside  the  business.  Rents 
Were  unaffected,  but  the  income  from  separately  operated  pro- 
perties fell  from  $4,351,000  to  $627,000,  and  the  nett  income 
from  dividends  was  fully  $3,500,000  down  at  $7,465,000,  so 
that  the  entire  income  was  nearly  $19,000,000  smaller  at 
$66,873,000.  Yet  so  strong  is  the  company  that  it  was  able 
to  meet  all , fixed  charges  and  to  pay  5  per  cent,  on  its  ordinary 
stock,  with  a  surplus  of  $13,000,000  left  over.  To  be  sure, 
nothing  was  set  aside  last  year  for  depreciation  of  equipment, 
but  neither  was  any  assignment  made  to  that  account  two  years 
ago,  so  that  the  $2,500,000  thus  assigned  for  1916  may  be  re- 
garded as  an  occasional  allowance.  In  one  sense  this  .sum- 
mary of  results  is  suggestive  of  a  splendid  reserve  strength  on 
the  part  of  these  railways,  and  lends  no  encouragement  to  the 
successful  clamour  for  higher  railroad  charges,  but  it  may  be 
that  in  other  directions  undisclosed  by  the  annual  renort  the 
company  has  been  straining  its  equipment,  allowing  lines  to 
deteriorate,  perhaps,  and  in  other  ways  affording  valid  argu- 
ments in  favour  of  heavier  charges  laid  upon  the  people  for 
services  rendered.  On  the  other  hand,  the  power  to  economise, 
so  as  to  counteract  the  effect  of  higher  wages  and  costlier 
materials,  does  not  seem  to  have  reached  its  limits.  Last  year 
the  company  carried  nearly  5  per  cent,  heavier  weight  of 
goods  and  8  per  cent,  more  passengers,  although  the  car 
mileage  was  reduced  by  114,668,000  miles.  At  the  same  time 
the  trainload  was  raised  by  81  tons  to  927  tons.  That  is  to  say, 
the  trainload  was  raised  by  gi  per  cent,  within  the  period  of  a 
single  year,  and  the  economies  thus  indicated  may  not  have 
yet  reached  their  limit,  so  that  the  necessity  for  increasing 
freights  and  fares  does  not  seem  to  be  demonstrated  by  the 
accounts. 

A  question  is  raised  about  the  position  of  railroad  securities 
which  have  been  defaulted  upon,  and  whose  property  may 
be  said  to  be  now  in  pledge  to  the  creditors.  Here,  for 
instance,  is  the  St.  Louis  San  Francisco  Railway,  which  has 
been  reorganised  under  foreclosure,  that  is  to  say  in  bank- 
ruptcy. Last  year  it  had  balance  of  nett  income,  after  meeting  all 
fixed  charges  and  rentals,  and  after  paying  interest  on  its 
different  issues  of  income  bonds,  amounting  to  $2,848,000.  This 
nett  income  would  be  sufiBcient  to  pay  the  6  per  cent,  on  its 
preferred  stock  and  4i  per  cent,  on  its  common  stock,  with 
something  over,  hut  neither  classes  of  stock  have  received  any- 
thing whatever,  and  recently  the  market  price  of  the  ordinary 
was  10  to  II  and  of  the  preferred  20  to  25.  Nobody  knows, 
indeed,  what  is  to  be  the  fate  of  the  company,  or  what  the 
Government,  which  now  has  control,  will  pay  by  way  of  capital 
for  the  use  of  the  lines,  so  the  price  of  the  common  stock  is 
now  little  more  than  the  as.sessment  paid  upon  it  by  the  holders 
to  prevent  the  property  from  being  wiped  out.  It  seems  a  pity 
that  this  should  be  so,  and  doubtless  some  explanation  or  clear- 
ing up  of  the  mystery  will  be  forthcominjj  before  long. 

Reverting  to  _the  question  of  railway  rates,  above  touched 
upon,  it  may  be  useful  to  mention  that  railroad  wages  alone 
have  been  raised  to  an  extent  that  gave  powerful  support  to  the 
demands  of  the  companies  for  liberty  to  make  higher  charges. 
Taking  the  number  of  men  as  employed  at  the  end  of  1917  and 
their  wages  as  at  June  30,  1915,  it  is  found  that  they  have  ob- 
tained rises  in  wages  amounting  in  all  to  about  $594,000,000. 
That  is  to  say,  on  the  June,  1915,  basis  their  wages  would 
have  been  just  under  $1,612,000,000,  and  they  were  actually 
earning  $1,917,000  odd  at  the  end  of  1917,  or  an  increase  of 
$305,000,000.  But  Mr.  McAdoo's  Wage  Commission  raised  the 
wages  to  upwards  of  $2,205,000,000,  an  increase  of  ;^iig,ooo,ooo, 
or  nearly  37  per  cent.  And  wages  are  not  the  whole  question, 
although  they  lie  at  the  root  of  all  advances.  The  improve- 
ment in  the  railroad  pay  rolls  is  only  a  reflection  of  what  is 
taking  place  everywhere,  and  everywhere  producing  the  same 
result,  viz.,  a  rise  in  prices.  And  when  the  reaction  comes? 
Ah  !  talk  not  of  that — yet.  The  wage  basis  of  relationship  be- 
tween man  and  his  fellows  may  then  have  to  disappear  alto- 
gether. 

A  new  company  has  been  formed  in  the  States  called  the 
Discount  Company  of  New  York.  It  is  modelled  upon  the 
English    discount    companies,  and   is   to  have    a    capital     of 


;^i,ooo,ooo,  with  a  surplus  of  £30o,ocx}.  That  is  to  say,  the 
$100  share  will  be  sold  at  $120,  and  the  odd  $20  will  go  to  form 
the  reserve.  Several  national  banks  and  trust  companies.  And 
one  private  bank,  have  subscribed  the  capital  to  this  new  insti- 
tution, which,  when  it  gets  its  charter,  will  deal  in  accepUnces 
of  commercial  paper.  The  founders  are  the  Mechanics  and 
Metals  National  Bank,  the  National  Bank  of  Commerce,  the 
National  City  Bank,  the  First  National  and  Chase  National 
Banks,  the  Guaranty  Trust  Co.,  the  Bankers  Trust  Co.,  the 
Central  Trust  Co  ,  the  Farmers'  Ixian  and  Trust  Co.,  and 
J.  P.  Morgan  and  Co.  One  of  the  purposes  of  the  new  bank 
will  be  to  assist  in  financing  the  foreign  trade  of  the  United 
States  after  the  war,  and  in  that  field  there  ought  to  be  ample 
scope  for  it  without  treading  on  anybody's  toes. 

It  should  be  noted  that  the  War  Trade  Board  of  the  United 
States  has  restricted  imports  of  crude  rubber  to  100,000  tons  per 
annum.  The  annual  import  has  been  about  157,000  tons,  so 
that  the  restriction  cuts  off  a  full  third  of  the  former  normal 
supply,  and  that  must  affect  the  market  for  the  output  of  our 
rubber  companies  as  well  as  those  of  companies  financed  id 
America. 

The  Federal  Trade  Commission  has  taken  another  step  which 
is  not  without  considerable  interest  here.  It  has  forbidden 
manufacturers  to  fix  the  sale  price  of  their  commodities.  Owners 
of  patent  or  proprietary  medicines,  for  example,  have  been  ac- 
customed to  dictate  to  their  retail  customers  the  price  rit  which 
their  manufactures  were  saleable,  and  have  penalised  any 
vendors  who  ventured  to  disregard  the  st  pulation  of  the  manu- 
facturer. It  will  apparently  no  longer  be  possible  for  them  to  do 
any  such  thing.  They  are  forbidden  to  indicate  the  prices  at 
which  their  proprietary  or  patent  medicines  are  to  be  resold, 
and  must  not  force  dealers  to  enter  into  agreements  restricting 
freedom  in  any  sense,  nor  must  they  penalise  those  who  disre- 
gard the  stipulaton  that  may  have  -been  made.  Prabablv  this 
decision  will  affect  trade  in  a  variety  of  ways  not  yet  visible, 
and  it  does  not  appear  to  be  certain  that  the  Commission  has 
not  gone  beyond  its  powers  in  knocking  down  the  monopoly 
fence.  ^.^^^_^^___^___ 

Insurance    News. 

Considerable  interest  has  been  aroused  in  American  insurance 
circles  by  an  announcement  that  the  Tokyo  Marine  and  Fire  In- 
•surance  Co.,  of  Tokyo,  the  largest  of  the  Japanese  insurance 
corporations,  has  invaded  the  American  fire  insurance  field. 
The  Japanese  interests  have  taken  over  the  business  of  the 
Aaschen  and  Munich  Fire  Insurance  Co.,  one  of  the  largest  Ger- 
man concerns,  that  was  closed  up  after  the  United  States  entered 
the  war.  The  Tokyo  Marine  Co.  was. already  doing  business  in 
the  United  States,  having  been  engaged  in  writing  marine  busi- 
ness, and  held  the  distinction  of  being  the  only  Japanese  insur- 
ance  office  so  engaged.  It  has  now  altered  its  charter  to  enable 
it  to  take  up  the  lapsed  business  of  the  German  companies,  and 
has  in  consequence  added  to  its  title  the  description— fire  insur- 
ance. In  1916  the  gross  premium  income  of  the  Aaschen  and 
Munich  company  amounted  to  ^332,000,.  and  paid  in  that  year 
claims  to  the  amount  of  ;f  122,000.  At  the  close  of  1916  the  Ger- 
man undertaking  had  in  the  United  States  insurances  in  force 
to  the  extent  of  about  ;^63 ,000,000.  . 

In  the  course  of  hearing  a  case  in  the  Courts  regarding  a  peti- 
tion of  the  Board  of  Trade  under  the  Trading  with  the  Enemy 
(Amendment)  Act,  1916.  when  the  judge  ordered  the  winding 
up  of  C.  Happach  and  Co.,  it  was  stated  that  the  Controller  had 
paid  the  premiums  on  two  policies  taken  out  by  Happach  with 
British  offices.  The  judge  inquired  if  there  was  any  emergency 
legislation  with  reference  to  life  policies,  and  what  would  hap- 
pen to  these  policies  if  the  payments  were  not  kept  up.  Counsel 
in  the  case  said  ne  should  think  they  would  lapse  automatically, 
but  the  insurance  companies  were  anxious  to  do  what  was  right, 
and  he  thought  they  could  be  revived  afterwards  on  payments  of 
the  amounts.  The  judge  suggested  that  when  the  order  was 
made  vesting  the  enemy  shares  the  policies  should  also  be  vested 
in  the  custodian,  who  could  keep  up  the  payments. 

Owing  to  the  fact  that  the  meeting  of  the  Phoenix  Assurance 
Co.  was  held  at  a  later  date  than  usual.  Lord  George  Hamilton, 
the  chairman,  was  able  to  review  as  a  whole  the  results  of  in- 
.surance  business  in  his  speech  to  the  shareholders  on  Wednesday. 
From  the  results  produced  Lord  Cieorge's  conclusion  was, 
that  this  important  branch  of  commercial  affairs  has  well  main- 
tained its  position  under  the  trying  circumstances  brought  about 
by  the  war.  Taken  as  a  whole,  the  fire  companies  did  fully  as 
well  as  usual,  marine  ofiices  have  also  done  remarkably  well,  and 
the  life  offices  have  shown  great  vitality,  though  the  financial 
effects  of  war  conditions  have  temporarily  influenced  their  pro- 
fits. The  main  features  of  the  fire  business  in  1917  were  a  lower 
loss  ratio,  diminished  expenditure,  and  larger  profits. 
In  marine  business  a  phenomenal  growth  was  shown  in 
premiums.  The  writing  of  war  risks  was  not  only  necessary  for 
the  protection  of  the  companies'  business,  but  was  of  immense 
service  to  the  commercial  community,  as  it  enabled  the  trade  of 
the  country  to  be  carried  on  without  undue  disturbance. 


Mr.  Montagu.  Secretary  of  State  for  India,  will  preside  at  a 
meeting  of  the  Indian  Section  of  the  Royal  Society  of  Arts  on 
Thursday,  20th  instant,  when  a  paper  by  the  Hon.  Sir  Dinshaw 
E.  Wacha,  on  "  Indian  Cotton  and  the  Cotton  Mill  Industry," 
wilt  be  read  by  Sir  Charles  H.  Armstrong,  late  chairman  of  the 
Bombay  Chamber  of  Commerce.  This  will  be  the  concluding 
meeting  of  the  Jubilee  Session  of  the  Indian  Section. 


June  15,  1918. 


XTbe  Jn vectors'  IReview, 


575 


INDIAN  RAILWAYS. 


MONTHLY    STATEMENTS. 


Nahb. 


Assam  Bengal 

Barsl 

Bengals  N.-W.     .. 

Bengal  Nagpiir 

Bombay,  Baroda  .. 

Burma 

Delhi  Umballa 

East  Indian.. 

Gt.  Indian  Penin.  .. 

Luoknow-Bareilly. . 

Madras      and       S. 

Mahratta  .. 
Nizam'sGd.  (Broad) 
,,        „     (Metre) 
Rohilkund  and 

Kumaon  .. 
South  Indian 


GROSS  TKAFFin  FOR   WEEK. 


VVeek 
ending 


Amount 


In.  or  dec. 

on  last 

year. 


GROSS  TRAFFIC  TO  DATE 


Apl.  13 

„  20 

I.  '3 

>>  to 

|une  I 

Apl.  I J 

June  I 

..  8 

May  25 

Apl.  13 


Ks. 

Ks. 

2,33.546 

+ 

9.^83 

39,900 

— 

24,200 

8,60,490 

+ 

6,325 

11,26,000 

+ 

42,000 

17,20,000 

+ 

25,000 

9,74.018 

+ 

24.995 

77,200 

+ 

12,241 

26,64,000 

+ 

1,47,000 

24,53,700 

+  2,16,000 

'.40,549 

+ 

42.593 

11,00,000 
1,68,269 

«6,99i 


1,01.505    + 
12,10,607  1 — 


60,385 
34,832 

5,449 


Amount 


Ks. 

2,33,54^ 

39,900 

8,&},490 

32,46,000 

1,58,19,000 

9,74,018 

7,68,585 

2,53,25,000 

1,83,83,600 

140,549 

31,25,000 
4,33.653 
2,49,586 


+  April  1.  J 

TRAMWAY  AND  OMNI 


11,745    t        1,01,505  + 
90,943    1       12,10,607  — 


In.  or  dec 
on  last 
year. 


Ks. 

9.883 

24,200 

6,325 

2,13.372 

13,34,000 

24,995 

99,076 

15,81,000 

7,07,802 

42,593 

90,62s 
37,514 
7,566 

I '.745 
90.943 


October  i, 
BUS.— HOME. 


Dublin  United 
Hastings  and  Dlst. 
Isle  of  Thanet 
Lancashire  United. 
Provincial    . . 
Yorks.  (Wst.  Rdng.) 


Apr.  5 
.May  27 

„  25 
June   5 

,.  1 
May  ig 


£ 
7.817 

1,508 

4'3 
3.149 
3,244 
3,007 


£ 

+  l,9'4 

+  223 

+  91 

—  282 

+  137 

■f  1,104 


£ 

99,454 
23,207 

6,525 
63,032 
88,402 
48,663 


»  From  Oct.  i.  t  From  Jan.  i. 

TRAMWAY  AND  OMNIBUS— FORtIGN  AND  COLONIAL. 


19.435 
3,054 
2,161 
17,792 
16,462 
11.358 


Alabama  Power    . . 

Apr.  I 

138,191 

+ 

£ 

3', 575 

Ms. 
2 

£ 
265,020 

£ 
+       5'.7i8 

Anglo-Argentine    .. 

June  10 

56,754 

+ 

2,639 

♦ 

1,274,678 

+       87,974 

Auckland  Electric. . 

Apr.  12 

23.209 

+ 

2,031 

a 

224,466 

<•         9,880 

Brarihan  Traction  . 

„     S 

M4, 091, 000 

+ 

M  38,000 

M15277G00 

—  M8i4,ooo 

Brisbane  Elec.  Inv. 

May 

37,610 

+ 

4,270 

175.179 

+       14.059 

British  Columbia  .. 

Apr.    S 

»'29,997 

+ 

•32,909 

10 

♦  1.162,554 

+  ♦»93.'53 

B.A.  Lacroze 
Burmah  Electric  ., 

May 

„    4', 315 
Rs.27,614 

+ 
+ 

720 
Rs.3,945 

11 

429.380 
213,042 

+         3.322 
+   Rs.4,945 

Calcutta 
Carthagena  and 

June  8 

Rs. 72,232 

+ 

Rs.7,724 

Rsi5l4,256 

+  Rsii5,039 

Herrerias  . . 
Cordoba  Light 

May      * 

5,027 

+ 

706 

22,585 

+         3.738 

P.&T 

Feb. 

'2,972 

+ 

1,076 

11 

•47.938 

+            435 

Hongkong   . . 

Apr.    6 

»I3,"' 

— 

31 

(191,668 

+       ♦2,605 

La  Plata 

Lima 

b 

5, '69 

+ 

940 

19.972 

+         2,807 

,, 

20,292 

+ 

1,603 

82.153 

+        14.554 

Madras  Electric   .. 

May  31  c 

Rs. 41,152 

+  Rs.  7,747 

Rs.403,879 

fRs. 60,(97 

Manila  Electric... 

Feb. 

168,000 

+ 

25,870 

335.000 

1-       46,570 

Mexico 

Nov.  ; 

»2I5,256 

— . 

» 108,669 

»3,i93,io6 

—  1197,227 

Rangoon 

May  S 

5,7'9 

+ 

982 

28,582 

+          3.345 

Singapore  Electric 

Apr.  13 

114,260 

•h 

tl,l29 

J202,259 

+        »2,87i 

Toronto 

..     S 

1500,728 

+ 

1 20,885 

♦  1,943,562 

)-      I76.096 

United  of  Monte  V. 

May 

32,301 

+ 

3.585 

238,338 

+        23,000 

Vera  Crui   . . 

Mar.   § 

47.700 

— 

4,400 

131,900 

—       23,700 

Apr.    § 

♦  65,739 

— 

15,676 

$282,595 

—     » 39.493 

b  28  days,       •  F 

rom  Jan. 

1.      S  Nett 

a  From 

lul 

V  z.      c  Tw 

0  weeks. 

FOREIGN  RAILWAYS. 


Alcoyand  Gandfa . . 

Antofagasta    (Chili) 

Arauco 

Argentine  N.E. 

Bilbao  R.  and  Canta 

Bolivar 

Brazil 

Brazil  Gt.  Southern 

B.  Ayres  &  Pacific 
Do.  Central 
Do.  Gt.  South'n 
Do.       Western 

Central  Argentine. 

C.Ur'g'ayofMte  V. 
Do.  East'n  Ex. 
Do.North'aEx. 
Do.  Wesfn  Ex. 

Cordoba  Central  . . 

Costa  Rica   . 

Caban  Central 

Dorada  Extension. . 

Egyptian  Delta      .. 

Entre  Rios  .. 

French  Sante  F^  . . 

Gt.  South,  of  Spain 

Gt.West.  ofBrazil.. 

Havana  Central     .. 

Inter,  of  C.  Amer... 

La  Guaira  and  Car. 

Leopoldina 

Midland  Uruguay  .. 

Mogyana 

N.W.  of  Uruguay .. 

Nitrate 

Paraguay  Central  . . 

Paulista 

Peruvian  Corpn     . . 

■Salvador 

State  of  Bahia  S.W. 

S.  Paulo  (Urazilian) 

Sorocabana., 

Taltal 

United  of  Havana.. 

West'n  of  Havana. . 

Zafraand  Huelva.. 


June 

8 

Apl. 

y 

June 

8 

May 

Mar. 

* 

Dec. 

* 

June 

8 

Apl. 

June 

9 

„ 

9 

K 

,, 

8 

,, 

8 

,, 

8 

,, 

8 

■ ,, 

8 

t£iy 

20 
25 

,, 

* 

,, 

20 

June 

8 

Mar 

June 

1 

,, 

8 

,, 

I 

Apl. 

C 

May 

June 

8 

May 

Mar. 

May 

,, 

31 

June 

8 

Mar. 

. 

May 

+ 

June 

I 

Apl. 

June 

9 

Mar. 

« 

May 

* 

June 

8 

„ 

8 

Apl. 

« 

*  Months,  i 


Jan.  I.   t 


£ 

Ps.  8,000 

54,435 

13,000 

11,100 

4,149 

12,000 

M4,878,ooo 

Vlis. 66,912 

138,000 

36,405 

121,000 

71,000 

140,000 

21,119 

6,061 

5,117 

1,877 

44,600 

3,399 

26.147 

9,500 

7,oS4 

17,700 

155,760 

29,674 

12,500 

10,456 

33,904 

5.500 

35,135 

11,702 

Ml, 629, 000 

#20,500 

37,933 

3,450 

.\I2,052,000 

Si, 022, 120 

2,851 

M40.OOO 

27,683 

Ml, 839,000 

23,168 

50,919 

9,516 

'4.738 

From  July 


Ps. 


£ 

3,oo3 

17,655 

2,000 

800 

133 

670 

M7l6,203 

M22,712 

57,000 

10,302 

26,000 

27,000 

60,000 

7,60: 

53 

2,349 

116 

8,830 

2,585 

1,865 

100 

2,076 

2,000 
45.^29 


— Ps62,/79 
+ 

+ 


1,60D 

2,323 
4,254 
2,250 
5,772 

—  1.055 

+  M46,737 

—  »6,255 
+  8,579 
+  80 
+  Ml85,572 
+  8119,340 
+            214 

—  M2,ooo 
+  „  5,541 
+  M232,244 

—  29 
+  14.916 
+  1,243 
+  4,361 


£ 

Ps.  215,100 

1,032,230 

52,000 

427,400 

22,151 

125,894 

M  14506,000 

M538,439 

4,736,000 

289,099 

5.419,705 

2,655,000 

5,738,200 

911,182 

254.937 

166,539 

108,572 

1,566,000 

121,652 

1,001,340 

42,900 

39,150 

796,800 

Ps.  654,796 

394,200 

455,32! 

111,780 

29,750 

731,008 

144,765 

5,577,-'>oo 

•  282,453 

312,881 

143,290 

M7,752,ooo 

S  11424,560 

104,271 

M277,0OO 

684,288 

M  5,575,000 

273,128 

2,868.770 

456,628 

50,650 


„£ 

-Ps.34,27D 
+  157,615 
+  8,000 
+  71,598 
+  3,052 
+  14,079 
+  M2499766 
+  M74,769 
+  541,000 
+       46,182 

—  50,549 
270,000 
7^9,100 
263,038 

12,006 

43,185 

19,846 

100,170 

101,276 

4-      171,396 

—  2,800 
+  11,032 
+  196,500 
+  — 
-PS1451874 
+      '03,350 

94,181 

23,330 

13,000 

196,645 

■  .,  ''7^9 
+  M 1016736 

+       $12,004 

+  24,933 
+      15,790 

+  Ml9g3524 
+  S1201888 

—  2,168 

—  M55,ooo 
+  172,965 
+  M7a4,446 
+  61,067 
+  705,895 
+  118,368 
+  9.954 


I.    c  Nett.    b  IJ  days,    a  lo  days. 


c 

9L0NIAL 

RAILWAYS. 

£ 

£ 

£ 

£ 

Beira 

Feb. 'c 

23,620 

-     28,673 

250,219 

— 

25.44' 

Canadian  Northern 

June  7 

t   847,100 

-  »6i,6oo 

939,266,600 

+  » 

1161,800 

Canadian  Pacific   . . 

.,     7 

♦£,846,000 

—  181,000 

$61,991,000 

+  $1264.000 

Gl.  Trk.  Main  Line 

..      7 

229,607 

+      15.745 

4.442.698 

+ 

289,016 

Gr.Trk.  Western.. 

..      7 

41.935 

—       2,448 

828.724 

+ 

'2.354 

Detroit  G.  H.&M. 

..      7 

".774 

—       3.925 

263.994 

— 

27,798 

GrTkPac  Prairie  Sc 

,  "      ' 

22,423 

396 

516.138 

(• 

85.627 

Mashonaland 

Jan.    • 

52,822 

—       3.300 

226,599 

+ 

3,232 

Mid.  of  Westn.  Aus. 

Apr.  • 

8.531 

—          650 

10 

79.259 

+ 

1,651 

New  Cape  Central.. 

..    30 

2.313 

+           433 

35,347 

+ 

5,839 

Rhodesia 

Feb. •£ 

62.666 

-      17.737 

408,466 

— 

10,000 

MBTT  SARMmaS  FOR  MONTR.       HBTT  (Alllllias  TO  DATE 


Month. 


Id.  or  Dec. 
on  last  year 


°4 

zS 


la.  01  Dee. 
on  last  year 


Alehlson  T.  &  S.  Tt 
Atlantic  Coast  Line 
Baltimore  &  Ohio  .. 
Canadian  Northern 
Canadian  Pacific  .. 
Chesapeake  &  Ohio 
Chicago  &  NW.  .. 
Chicago  Burl.  &  Q, 
Chicago  G.W. 
Chicago  Mil.  &  S.P 
Chicago,  Rock  I.&P. 
Colorado  ^Southern 
Cuba  .. 

Delaware  &  Hud 
Denver  &  Rio  Gran. 
Brie    .. 

Gr.Tr.  Main  Line.. 
Grand  Trunk  Westn 
Detroit G.H.&  Mil. 
Gt.  Northern 
Illinois  Central 
Kansas  City  Soutbn. 
Lehigh  Valley 
Louisville  &  Nasbvl 
Minn.  S.P.  (Soo)5 .. 
Miss.  K.  &  Texas  . 
Missonri  Pacific   , 
NewYorkCent.&H. 
N.Y,N.Haven&H. 
New  York  Ont.&W 
Norfolk  &  Western 
Northern  Pacific   ., 
Pennsylvania    East 
and  West  Lines, . 
Phil,  and  Reading  . . 

Reading 

St.  Louis  St  San  P.. 
Seaboard  Air  Line.. 
Southern 

Southern  Pacifio   . . 
Union  Pacific 
Wabash 


Jan. 


Apr. 

Feb. 
Jan. 
Deo. 
Feb. 
Jan. 
Feb. 
Dec 
Mar. 
Jan. 
Feb. 
Dec. 
Apr. 


Deo. 
Feb. 

)t 

Jan. 
Feb. 
Dec. 
Feb. 
Nov. 
Feb. 
Dec. 
Apr. 


Mar. 
Nov. 
Feb. 
Dec. 

Feij. 
Jan. 

Fek 


Dots. 

I,9[2,0C0 

1,075,000 
1,852,000 

541,300 
3.455.000 

627,000 
b  785,000 
1,535,000 

151,000 
b  628,000 

271,000 

488,oit6 

3.600 

341,000 

507,000 

144,600 

b  f  28,350 

b  £9.600 

1,165,000 

i,co8.ooo 

455.000 

6985,000 

1,462.000 

6126,000 

76,000 

1,690,000 

705,000 

207,000 

21,000 

542,000 

862,000 

2,527,000 
b  416,0c  o 

131.541 
1,225,000 

673.000 
1,772,000 


b  166,000 


Dols. 

—  1,689,900 

—  212,000 

—  1,165,000 

—  316,600 

—  720,000 

—  160.000 
.797.000 
,276,000 

_  36,000 
—2,291,000 

—  348,000 

—  11.000 
h    510.194 

—  720,000 

—  12,000 
+  1,848,000 

—  45i'550 

—  £17.250 
+  £100 
—1,401,000 

—  238,000 
+  59.000 
—1,346,000 

—  25,000 

—  883,000 

—  112,000 
-(-    321,000 

—  243,000 
—1, 795, coo 

—  60,000 

—  833,000 

—  694.000 

3,665,000 

—1,939,000 

40,038 

244,000 

206,000 

412,000 

536,000 

72,000 

8,000  ! 


Dots 

47,839,000 

12,014,000 

30.589,000 

3.0  u. 400 

8,207,000 

546,000 

37.015.000 

32,867,000 

142,000 

21,967,000 

351,000 

5,320.000 

3,530.288 

5,686,000 

756,000 

10,538,000 

l>  £263-750 

6  /,"138,250 
6  jC48,ooo 
22,gS7.ooo 
531,000 
824,000 
9,403,000 
2,084,000 
9.331.000 

231,000 
9,425,000 

6     443.000 

23,815,000 

14,000 

765,000 

1,644.000 

610,018,000 

14,877,000 

249,000 

p.576,000 

8,628,000 
17,716,000 

59,785,000 

42,942,000 
6     482,000 


Dolt. 

—  1,248.000 
+     607,000 

—  3.4*5  pooo 

—  3.231,000 
4.3'3.0oo 
1,394,000 
3,634,000 

—  6,232,000 

—  357.000 

—  9,360,000 

—  1,636,000 
+  370,000 
+  1.3*7.990 

—  3,124,000 

—  394,000 

—  5,277,000 
£846,600 

—  £111,750 

—  £11,800 

—  6,179,000 
+  2,272,000 

—  10,000 

—  2,876,000 

—  1,289,000 
3,648,000 

~-  392,000 
+  1,920,000 
+•  5.019,000 

—  2,245.000 

—  185,000 

—  2,300,000 

—  2,139,000 

—620869000 

—  6,626,000 
+  80,230 
4-      633,000 

—  34,000 
+  1,667,000 
+  7.953  »ooo 

—  3,115,000 

—  1^84,000 


S  Includes  Wisconsin  Central.    *  Gross  earninRS.    t  Surplus.    6  Deficit. 


INDIAN  WAR  LOAN,  1918-19. 

The  whole  of  the  subscriptions  will  be  given  to  His  Majesty's 
Government  as  part  of  the  Indian  contribution  of  ^100,000,000 
towards  the  cost  of  the  war. 

The  Government  of  India  announce  the  following  issues  :— 
5i  per  cent.  War  Bonds  1921  and  1923. 

Issue  price  par,  payable  in  full  on  application.  Interest  pay- 
able on  15th  March  and  15th  September,  free  of  Indian  Income 
Tax,  but  not  of  supertax  if  otherwise  payable  by  the  holder. 

Repayment  at  par. — War  Bonds  1921  on  15th  September, 
1921  ;  War  Bonds  1923  on  15th  September,  1923. 

5i  per  cent.  War  Bonds,  1925  and  1928. 

Issue  Price  par,  payable  in  full  on  application.  Interest 
payable  on  15th  March  and  15th  September,  free  of  Indian 
Income  Tax,  but  not  of  supertax  if  otherwise  payable  by  the 
holder. 

Repayment. — War  Bonds,  1925,  at  103  per  cent.,  on  15th 
September.  1925;  War  Bonds,  1928,  at  105  per  cent.,  on  15th 
September,   1928. 

Applications  for  bonds  will  be  received  from  3rd  June  to  15th 
September  by  the  Controller  of  Currency,  Calcutta;  by  any 
Provincial  Accountant-General  or  Controller  ;  by  the  Banks  of 
Bengal,  Bombay,  or  Madras  at  their  head  offices  and  branches ; 
and  at  Government  District  Treasuries.  A  commission  of  J  per 
cent,  will  be  allowed  to  recognised  bankers  and  brokers  on 
allotments  bearing  their  stamp. 

Applications  will  also  be  received  at  any  Post  Office  authorised 
to  transact  Savings  Bank  business  from  3rd  June  to  about  20th 
December.  The  same  person  may  not  apply  for,  or  hold  through 
a  Post  Office,  stock  to  a  greater  value  than  Rs.  10,000  in  all  of 
these  issues. 

Indian  Treasury  Bills  outstanding  will  be  accepted  in  payment 
for  any  issue  of  War  Bonds  at  a  discount  of  4  per  cent,  per  annum. 

The  Government  of  India  also  announce  that  after  the  closure 
of  the  main  section  of  the  second  Indian  War  Loan  on 
15th  September,  1918,  they  will  be  prepared  to  accept  as  further 
subscriptions  to  the  loan  at  the  rate  of  exchange  of  Is.  6d.  per 
rupee  British  Treasury  Bills  tendered  in  England  under  a  discount 
of  3 J  per  cent,  to  an  amount  not  exceeding  previous  cash  sub- 
scriptions tendered  in  India,  provided  that  the  Treasury  Bills  are 
accompanied  by  a  certiBcate  that  they  were  the  property  of  the 
person  in  whose  name  the  paper  is  held  prior  to  10th  May,  1918. 

Post  Office  Cash  Certificates  (free  of  Income  Tax). 
These  will  be  issued  throughout  the  year  on  the  same  terms 
as  at  present. 
India  Office, 

11th  June,  1918. 


*  Months. 


I  July  I. 


tjan.  I,       c  FroiqOot.  I. 


i 


576 


XTbe  investors'  IReview. 


June  ss,  1918. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 

£9,700,000 
or  over  £31,000  for  each  Working  Day. 

SGOniSH  UNION  &  NATIONAL 

INSUMIICE  COMPINV. 

ESTABLISHED    1824. 

ASSETS    exceed    £11,000,000. 

FIRE  (INCLUDING  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  ILLNESS,  ANNUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  CLASS  BREAKAGE,  TRANSIT  OF 
SECURITIES,  FIDELITY,  PROPERTY  OWNERS'  LIABILITIES,  HORSE  DRIVING 
ACCIDENTS.  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh:  3S,  St.  Andrew  Square. 
London  t  8,  Valbrook,  E.G.  4,  and  4,  St.  James'  St.,  8.W.  1. 


ASSURANCE   COMPANY 
LIMITED, 

Established  178a. 

HMd  Offioa:  PHSNIk  HOUSE,  KIN6  WILLIAM  STREET,  LONDON,  E.C.  4. 
Total  Asaeta  Bxoead  d9,000,000. 
Clalma  Paid  Bxoeed  iElOO,000,000. 

ChaiiDUui— Rt.  Hon.  LORD  GEORGE  HAMILTON,  P.C,  G.C.S.I 


PI  RE. 


LIFE. 


ACCIDENT. 


MARINE. 


Law  of  Profit!  following  Fire,  Workmen's  Compensation,  Fidelity  Guarantee, 
Burglary,  Trustee  and  Executor,  8cc. 
PffOflpectuset  and  Proposal  Forms  may  be  obtained  on  application  to'^y  of 
the  Brancb  Offices  or  Agencies,  or  to  the  Head  Offices 

General  Manager       •       SIR  GERALD  H.  RYAN. 


TLbc  investors'  1Re\?iew. 

Money    and   Credit   Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5J  percent. on 
Thursday,  April  5,  19x7.) 


Norfolk  House,  Friday  Evening. 

Money  has  been  easy  all  the  week,  the  rate  for  afternoon  loans 
being  generally  2J  per  cent.  ;  24-hour  money  was  3  per  cent,  and 
seven-day  loans  3^  per  cent.  Discount  quotations  remained  at 
3/j-3J  per  cent,  for  two  and  three  months'  bank  paper,  and  3^ 
per  cent,  for  all  longer  dates.  Sometimes  the  market  was  firmer 
in  tendency,  sometimes  flabbier,  and  that  is  all  there  is  about  it. 
July  bills  were  bought  by  the  banks  at  3^-ii  per  cent.,  and 
August  bills  at  3%  per  cent. 

Movements  in  the  Bank  return  are  less  extensive  than  we  have 
recently  been  accustomed  to.  Public  deposits  are  up  ;^4,356,ooo, 
and  other  deposits  down  ;^5, 342,000,  the  decrease  in  the  other 
deposits  being  in  accordance  with  the  increase  in  the  public  de- 
posits, plus  declines  of  ;f255,ooo  in  Government  and  of  ;^639,ooo 
in  other  securities.  Most  of  the  money,  that  is,  was  transferred 
to  the  credit  of  Government  accounts,  and  the  balance  utilised 
to  reduce  the  advances  on  securities.  A  decline  of  ;^86,ooo 
occurred  in  the  reserve,  in  spite  of  an  increase  of  ^^84,000  in 
the  coin  and  bullion,  because  the  note  circulation  expanded 
^^171,000.  The  proportion  of  reserve  to  liabilities  is  unaffected 
by  the  decline  because  of  the  corresponding  shrinkage  of  liabili- 
ties.     It  remains,  therefore,  at  lyji  per  cent. 

We  may  be  sure  that  there  was  little  speechifying  at  the  pre. 
sentation  to  Ixird  Cunliffe  by  the  Committee  of  the  London 
Bankers'  Clearing  House,  for  his  lordship's  great  abilities  do 
not  extend  to  oratory.  But  the  ceremony  was  none  the  less  sin- 
cere on  that  account,  for  Lord  Cunliffe  steered  the  Bank  through 
the  most  intensely  critical  time  of  its  history,  and  the  gift  of  a 
silver  inkstand,  copy  of  an  old  inkstand  at  the  Troisury.  was  a 
fitting  expression  of  the  esteem  in  which  the  ex-Governor  is 
held.  On  the  inkstand  was  the  following  inscription  :— "  Pre- 
sented to  Lord  Cunliffe,  Governor  of  the  Bank  of  England,  by 
the  Committee  of  the  London  Clearing  Bankers,  in  recognition 
of  his  guidance  and  co-operation  during  the  Great  War,  1014 
18."  The  presentation  was  made  by  the  chairman  of  the  Com 
■mittee,  Mr.  H.  Goschen.  . 


It  was  to  be  cxperted  that  the  eighth  German  Loan  would 
turn  out  to  be  the  biggest  of  all.  Nothing  else  would  serve, 
and  accordingly  we  are  not  surprised  to  be  told  that  it  has 
brought  in  .something  over  ;f  750,000, oof).  The  highest  previous 
total  recorded  was  ;^639,ooo,ooo,  which  was  the  product  of  the 
sixth  German  Loan,  but  how  much  of  any  of  them  is  genuine 
new  money  it  would  be  useless  at  the  present  stage  Jo  attempt 
to  discover.  What  the  public  records  show  is  that  Germany 
has  piled  up  her  funded  debt  by  nearly  ;£'4, 500,000,000,  and 
that  the  interest  alone  on  this  debt  will  put  upon  the  German 
people,  impoverished,  decimated,  worn  down  by  hunger  and 
disease,  deprived  of  their  trade,  and  generally  hated  by  the 
rest  of  the  world,  an  annual  charge  01  from  ^220,000,000  to 
;£25o,ooo,ooo  sterling  per  annum.  Need  more  be  advanced  to 
prove  that  Germany  is  on  the  way  towards  a  defeat  which 
■will  mean  the  end  of  the  German  Empire,  if  not  the  oblitera- 
tion of  the  German  race? 

Arrangements  have  bc-en  made  to  renew  the  ;f500,ooo  of 
Corporation  of  Ix>ndon  2j4  per  cent,  five-year  bonds  which 
mature  next  month.  The  bonds  will  be  renewed  at  par  for  two 
years,  and  will  carry  4%  per  cent,  interest.  In  addition,  bond- 
holders will  receive  an  immediate  cash  payment  of  17s.  6d.  per 
cent.,  which  will  bring  the  yield  on  the  new  bonds  up  to 
nearly  5  per  cent. 

The  default  on  the  Port  of  Para  bonds  is  likely  to  be  brought 
to  an  end  in  the  near  future.  No  interest  has  been  paid  on 
the  two  series  of  5  per  cent,  bonds  since  September,  1914,  and 
since  March  25,  191 5,  the  company  has  been  in  the  hands  of 
receivers.  The  inability  of  the  company  to  pay  the  interest 
arose  from  the  non-receipt  from  the  Federal  Government  of 
Brazil  of  its  guarantee  of  interest  on  the  recognised  capital  of 
the  company  employed  in  the  Port  works.  Subsequently  it  wa.s 
arranged  that  the  Government  should  pay  the  arrears  of 
guarantee  partly  in  cash  and  partly  in  funding  bonds,  and 
already  very  large  amounts,  both  in  cash  and  funding  bonds, 
have  since  been  received,  and  further  cash  payments,  bring- 
ing up  all  the  arrears  to  date,  are  expected  to  materialise 
shortly.  There  are  over  ^^7, 000, 000  of  bonds  outstanding,  of 
which  the  bulk  are  held  in  France,  only  about  ;f654,6oo  in 
5  per  cent,  first  mortgage  50-year  gold  bonds  being  held  in 
this  country.  The  interest  arrears  amount  to  over  ;f  1,300,000, 
but  the  funds  which  will  shortly  be  available  will  enable  all 
interest  and  sinking  fund  payments  to  be  brought  up  to  date. 
Some  delay  may  occur  before  the  payments  are  made,  as  bond- 
holders' meetings  must  first  be  held  and  the  receivership  pro- 
ceedings terminated. 

The  Australian  Bank  of  Commerce  recently  arranged  to 
acquire  the  City  Bank  of  Sydney,  and  now  the  National  Bank 
of  Australasia  is  negotiating  a  scheme  of  amalgamation  with 
the  Colonial  Bank  of  Australasia.  This  latest  scheme  is  im- 
portant, for  the  combined  institution  will,  on  the  basis  of  the 
latest  figures  available  in  this  country,  rank  fifth  as  regards 
.size  among  the  banks  of  the  Commonwealth.  Its  deposits  will 
amount  to  i6}4  millions  against  19;^  millions  in  the  ca.se  of  the 
Bank  of  Australasia.  21  millions  in  the  case  of  the  Union  Bank 
of  Australia,  24  millions  in  the  case  of  the  Commercial  Banking 
Co.  of  Sydney,  and  40^-3  millions  in  the  case  of  the  biggest  bank, 
namely,  the  Bank  of  New  South  Wales. 

The  market  is  already  anticipating  the  issue  of  another  New 
South  Wales  loan,  when  the  moment  for  its  flotation  is  con- 
sidered to  have  arrived.  The  amount  mentioned  is  ;f5.ooo,ooo, 
the  bulk  of  which  is  required  to  meet  the  balance  of  the 
;^i2,648,477  3J^  per  cent,  loan  maturing  on  September  1,  which 
was  not  covered  by  the  conversion  loan  issued  in  February,  this 
balance  amounting  to  between  two  and   three  millions. 

The  debt  of  the  Canadian  Dominion  increased  ^^63.400,000 
last  year  compared  with  the  previous  year,  its  nett  total  at  tha 
end  of  May  last  being  ;£228, 847,000. 

Apart  from  a  rather  heavy  depreciation  in  the  value  of  the 
lira,  there  have  been  no  very  striking  movements  on  balance 
in  the  foreign  exchanges.  The  placing  of  Italian  credit  bills 
seems  quite  insufficient  to  provide  sufficient  sterling  to  meet  the 
demand,  and  this  week  lire  have  been  obtainible  at  44.45  to 
the  pound  sterling,  or  qo  centimes  more  than  a  week  ago. 
Amsterdam   has   moved    against   this   country,    the    rate    being 


NOTICE  to  CLIENTS  and  READERS. 


May  we  remind  clieats  and  regular  readers  of  "THE 
INVESTORS'  REVIEW"  that  after  next  week  they  cannot 
get  it  anywhere  without  ordering  it  beforehand.  Even  ■ 
single  copy  must  be  ordered  beforehand.  The  safest  way 
is  to  subscribe  for  the  paper,  either  direct  with  the  publisher 
at  Norfolk  House,  Norfolk  Street,  London,  W.C.  2,  or 
through  their  usual  newsagent.  This  can  be  done  for  just 
one  week  longer  at  the  rate  quoted  in  the  beginning  of  each 
number.  Cost  of  paper  and  printing  dictates  imitation  of 
those  weeklies  that  have  raised — often  doubled — their  prices. 
We  have  decided  to  leave  the  price  at  6d.,  but  are  compelled 
to  add  postage  to  the  subscription  price.  That  is  to  say.  after 
July  1,  the  price,  by  post,  will  be  28,'-  per  annum,  14  6  for 
six  months,  and  7/6  per  quarter,  inland.  For  abroad  it  will 
bi. — one  year,  30/-  ;  six  months,  15/6  ;  three  montbs,  8/-. 


Jl'NE    15,    1918. 


Zbc  3nve8tor6'  IRevtew. 


577 


q.jo'/i  florins  to  the  pound.  The  Spanish  exchange  has  im- 
proved slightly  to  16.77;^  pesetos,  and  Copenhagen  is  4  points 
higher  at  15. 22^^  kr. 

Silver. 
Silver  may  be  said  to  be  "stabilised"  in  price,  and  Messrs. 
Mocatta  see  no  likelihood  of  any  important  change  at  present. 
The  Shanghai  exchange,  however,  has  now  ri.sen  almost  to 
parity  with  the  dollar  per  ounce  fine  in  San  Francisco,  and  both 
Mocatta's  and  Montagu's  circulars  say  that  China  may  be  in  the 
market  as  a  buyer.  The  stock  of  silver  in  Shanghai  was  down 
about  1^800,000  ozs.  to  29,500,000  ozs.  and  *6oo,ooo  at  $15,300,000 
on  May  2!;.  

BANK    OF    ENGLAND 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32.  for  the 
Week  ending  on  Wednesday,  June  12,  1918. 


LONDON  BANKERS'  CLEARING. 


Motes  Issued 


ISSUE    DEPARTMENT 

£ 

81,705,150 


£81,705,150 


Government  Debt.. 
Other  Securities    .. 
Gold  Coin  and  Bullloo 
Silver  Bullion 


£ 
11,015,100 
7,434,900 
63,255,150 


£81,705,130 


Proprietors'  Capital 

Rast 

Pabllo  Deposlts(lnoludlDg 
Bicbeqaer,  Savings 
Banlts, Commissioners 
of  National  Debt,  and 
Dividend  Aooounts) .. 

Other  Deposits 

Seven  Da;  and  olber  Bills 


BANKING    DEPARTMENT. 

£        1  £ 

14. 553.000     Government  Securities  ..  56,148,732 

3,224,722     Other  Seonrliies    ..        ..  100919,204 

Notes 29,680,03s 

Gold  and  Silver  Colo      .,  623,37s 


43,019,897 

126,563,205 

10,522 


Dated  June  13,  1918. 


£187,371,346 


£187,371,346 
E.  M.  HARVEY,  Chief  Cashier. 


BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


i^asl  year. 
June  13. 

June  5, 
1918. 

June  I2( 
.918. 

laorease. 

£ 

3,143,977 

49,784,232 

«25,854,637 

25,362 

45,to8,ioS 

«13,124,499 

35,028,803 

Liabilities. 
Rest 

Pub.  Deposits.. 
Olber    do. 
7  Day  Bills       .. 

Assets. 
Gov.  Seootliles. 
Other       do. 
Total  Reserve.. 

3,217,787 

38,663,800 

I3l,905,03» 

11,598 

56,403,735 
101,558,003 
30,389,482 

£ 

3,224,722 

43,019,897 

126,563,205 

10,522 

56,I4',73S 
100,919,204 
30,303,4'0 

»,935 
4,356,097 

Decrease. 
255,000 

638,799 
86,072 

i 

5,341,827 

1,076 

Increase. 

, 

5,345,903 

5.345,903 

£ 

5»,778,5o5 

55,357,308 

199  PC 

i       ; 

NoieCiroulation 
Coin  and  Bullion 
Proportion 
Bank  Rate 

51,855,020 
63,794,502 
178  p.c. 
5 

£ 

52,025,115 
63,878,525 

179  PC. 
5        „ 

Increase 

c 

170,095 
84,032 

.1  p.c. 

Decrease. 

PUBLIC   INCOME  AND    EXPENDITURE. 

(For  7  days  ended  June  8.) 


Revbmub. 


ExpEMDrruRB. 


Customs          2,113,000 

Kxcise 430,000 

Estate,  &c.,  Duties  ..         ..  585,000 

Stamps 294.000 

L.and  Tax  and  House  Duty  493,000 

Property  and  Income  Tax  10,000,000 

Excess  Profits  Tax..         ,.  4,313,000 

Land  Values 5,000 

Post  Office 6oo,oco 

Crown  Lands — 

Sundry  Loans.,        .,        ..  — 

Miscellaneous 327,0:0 

Bullion  advances  repaid    . .  220,000 

ForTreasury  Bills  for  Supply  92,220,000 

j%  Exchequer  Bonds,  1930  4,100 

S%  Exchequer  Bonds,  1922. .  — 

6%  Exchequer  Bonds,  1930. .  — 

National  vVar  Bonds           *  14,423,000 

War  Savings  Certificates  . .  2,300,000 

4%  War  Loan,  1929-1942  |  

5%  War  Loan,  1929-1947  f  *  * 
Other  Debts  created   under 
War  Loan  Act,  1915,  and 

Finance  Act,  1916..         ..  4,197,272 

Telegraph  Money  Act,  1913  — 
Under  Post  Office  Riy.  Act, 

1913 — 

-Under  Military  Works  Act, 

1897-1903       — 

Under  Public  Buildings    ..  — 

linder  Housing  Act..         ..  — 
Repayment  of  Advance  for 
Interest     on     Exchequer 

Bonds           — 

China  Indemnity      ..         ..  — 
East    Africa    Loan    repay- 
ments   — 

Suez  Canal  Drawn  Snares..  — 

Ways  and  Means  Advances  30,000,000 
Decrease      in      Exchequer 

balances       — 


£132,534.372 


National  Debt  Service 

Interest,   &c.,  on  War  Debt  20, 

Development  &  Road  Impvt 

Pavments  to  Local  Taxation 

Other  Consolidated  Fund 
Charges        

Supply  Services        . .         . .  44,' 

Bullion  Advances     . . 

For  Advance  for  Interest 
on  Exchequer  Bonds  un- 
der Capital  Expenditure 
(Money)  Act,  1904  . , 

For  Treasury  Bills    ..       ..78, 

Other  Debt  under  War  LoaD 
Acts,  19U-16 

For  War  Loan  and  Ex- 
chequer Bonds  under 
Section  61  of  Finance  Act, 
1916,  and  Section  34,  1917 

Under  Telegraph  (Money) 
Act,  1913 

Under  Post  Office  (Lon- 
don) Railway  Act,  1913  •• 

Under  Military  Works  Acts 

Under  Housing  Act,  1914.. 

Public  Buildings  Expendi- 
ture Act,  1903 

Old  Sinking  Fund,  1907-8.. 

Sinking  Fund,  1910-11 

China  Indemnity 

East  African  Loan  . . 

Cunard  Agreement  Act     . . 

Expenditure  Certificates   .. 

Depreciation  Fund  . . 

Suez  Canal  Drawn  Shares.. 

Ttrmp      Advances     Repaid 

Increase  in  Exchequer 
baUaces       


£ 
688,271 

10,380 

34.938 
,036,000 

200,000 


54,346 


,548,000 
300,000 

,000,000 

,209,537 


:f  152,534.372 


Date.        1 

Uecrcase. 

fanuary 
February 
March 
April 
May 

June          5 
„           12 

1918. 
2,073,224,000 
1,605,654,000 
1,784,836,000 
1,446,306,000 
",837,751,000 
393,902,000 
383,311,000 

1917. 
1,865,125,000 
1,779,524,000 
1,492,825,000 
1,403,902,000 
1,779.366,000 
396,033,000 
342,330,000 

208,099,000 

292,011,000 
42,404,000 
58,385,000 

40,981,000 

£ 
173,870,000 

,«,i3i,ooo 

Total 

9.324,934,000 

8.059,075,000 

641,880,000 

176,001.000 

^ 


CURRENCY   NOTES. 

Retnra  of  Cumacy  Notes  for  the  week  ended  June  12, 1918. 

Issued. 

Cancelled. 

OutatandioK, 

£1  notes         

10s.  notes        

Note  certificatea 
Previous  total 

£ 

3,796,789 

1,320,605 

220,000 

930.04970* 

4,948,785 
1,167,883 

682.044,644 

180,226,781 
39,899,021 
29,080,000 

935,387.115 

686,161,132 

249,225,802 

Ratio  of  gold  held  against  notes,  this  week,  12.91  p.c. ;  last  week,  13.00  p.c* 

FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  4f.). 


May  10,  1918. 

May  3,  1918. 

May  11,  1917. 

Gold  coin  and  certificates 

Gold  Settlement  Fund 

Gold  with  foreign  agencies  . . 

96,116,000 

87,488,800 
10,500.000 

96,566,400 

87,554,200 
10,500,000 

67,368,200 
44,351.800 

Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

194,104,800 

i77,oo5,4eo 

5,516,800 

194,620,600 

172,459,5«" 

4,908.200 

111,720,000 

87,664,600 

537,400 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

376,^27 ,000 
11.873,000 

37i,9ba,ooo 
12,008.600 

199,922,000 
7,229,800 

Total  reserves  . . 
Bills  discounted — Memt>ers'.. 
Bills  bought  in  open  market 

388,500,000 
l87,to8,200 
57,207.2"0 

383.996,600 

174,688,400 

59,405,800 

207,131,600 
7,906,800 
19.431,009 

Total  bills  on  hand     .. 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec.      .. 
All  other  earning  assets 

245,015,400 

8,023,200 

21,352,400 

368,800 

234,094,soo 

8,283,000 

9,229,20a 

507,40. 

27,337,800 
7,244.400 

16,307,800 
1,970,600 

Total  earning  assets  . . 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 

274,759,800 
€,^8,800 

92,*l4.ooo 

250,113,800 
*4,6l6,ooo 
79,937,000 

53,8«o,6oo 

269,000 

62,137,000 

Total  dedctns.  fm  gross  dep. 
5%Red.Fund  agFed.Res.bknts 
All  other  resources 

9l,l45,2co 
80,800 
13,200 

75,321,000 
107,400 
65,800 

62,406,000 

80,000 

1,182,600 

Total  resources 

754.499,000 

700,604,600 

324,681,000 

Capital  paid  in 

Surpiiks    ■ 

Government  deposits  . . 
Due  tomembrs— Res.  account 
Collection  items 
Oiherdepsinc.For.Govt  crdts 

15,023,600 
226,roo 
27,705,800 
309,627,400 
61,954,600 
22,122,200 

15,009,000 
226,800 
i4,777,*» 
294,903,630 
51,518,600 
18,31c, 600 

ii,37i,8m 

48,484,2*0 
14^,145,200 
26,889,400 

Total  gross  deposits    . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn— nett  liab 
All  other  liab,  in  for  Gov  crdts 

421,410,000 
313,923,600 

i,575,6«o 

2,33'',40O 

379,512,400 

311,332,000 

1,596,000 

i,9a7,6oo 

223,518,800 
87,643,600 

2,146,800 

Total  liabilities 

754,499.000 

709,604,600 

324,681, coo 

Gold  res.  ag  nett  deposit  liab 

Gold  res  ag  F.R.  nts  in  act  circ 

Ratio  of  gold  res  to  nett  dep 

and  F.R.  nts  liabilities  com 

bined 

Ratio    of    total    res.    to    net 
deposit  and   F.R.    note  lia 
bikties  comb  ned      .. 

58.9% 

58.1% 
58.5% 

60. 5% 

637% 
57.0% 

60.4% 
62.1% 

69.4% 

ico.8% 
80.4% 
8,.1% 

♦  Difference  between  net  amounts  due  from  and  net  amounts  due  to  other 
Federal  Reserve  Banks. 

N,EW   YORK  ASSOCIATED    BANKS   AND    TRUST    COMPANIES 

(dollar  at  4s.).  


Loaas,  Discounts,  etc. 
Cash  in  Vaults  of  Members 

Fed.  Res.  Bk 

Aggregate  Reserves     . . 

Excess  Reserve 

Nett  Demand  Deposits  . 

Nett  Time  Deposits  .. 
U.S.  Deposits  Deducted 
Circulation 


Junes,  1918   Junei.igiS   May23,i9i8  June  9, 1917 


£ 
900,698,000 

i9f972.rco 

I07,fO4,OC0 

7,498,000 
749.394.000 
31,288,000 
51,586,000 

7,434.000 


£ 
904,740,000 

20,234,000 
108,364,030 

9,424,000 
744,810,000 

32,256,000 

71,212,000 
7.412,000 


£ 
912,970,000 

106,860,000 
9,084,000 


7,324.400 


749,470,000 


13,190,000 
723,216^000 
35,582,000 


5,846,* 


BANK 

OF  FRANCE   (2S  francs  to  the  £). 

June  13,  (gi8. 

June  6,  1918. 

May  30,  1918. 

£ 

June  14,  1917. 

£ 

£ 

£ 

Gold  In  hand 

I33,942,l» 

133,865,(40 

133,812,600 

129,885,000 

Silver  In  hand 

10,142,080 

10,l56,6jo 

10,161,640 

10,324,280 

Bills  discounted      .. 

59,102,720 

55,966,240 

44,8^4,200 

20, 123,880 

Advances 

38,265,920 

37,»7t,53o 

37.177,080 

45,669,600 

Note  circulation 

1,129,282,920 

I,120,4S7,«4'i 

l,oj3,734,88o 

791,751,480 

Public  deposits 

2, 129,080 

2,187,360 

1.842,560 

1,377,960 

Private  deposits 

155,050.920 

154,435,040 

133,593.320 

103,558,849 

Poreien  Rills.. 

277,280 

146.6^0 

ii^.e'fo 

61,360 

Proportion  between  bullion  and  circulaiiou  2j.o^  per  cent.,  at<ainsi  20.21  pet 
cent,  last  week.  Advances  to  the  State  ^718,000, 000,  increase  i  18,000,000.  The 
adjourned  payments  of  dtafts  in  Paris  on  account  of  the  moratorium.  £18,960,520, 
decrease  ,^24,320,  and  at  the  branches  £24,225,8;o,  decreasi*.  ^^14,430. 

BANK    OP   SPAIN  (23  pesetas  to  the  £). 


June  I,  1918  May  25, 1918  May  18, 1918  J  une  2,  liW 


'Excluding  sales  tlirou^h  banks  which  have  aot  yet  t>eoa  brought  to  account. 


Gold        

Silver 

Focelea  Bills  .. 
Discounts  and  bhort  Bills 
Treasury  Account,  Sic. 
Note,  in  Circulation  ..  ..1 
Current  Aooounts,  Deposits 
Dividends.  Interests,  &a.  .. 
Sovernmeni  Securities        ..' 


£ 
82,675,354 
28,340,131 
3,813,371 
33,039,224 
25,209,919 
117,424,483 

40,ll5,l8d 
2,429.090 
1.953.843 


.  £ 

82,434,917 
28,347,212 

3,833,394 
32,168,254 
25.329,553 
117,070,644 
39,551,336 

1,755,270 

2  06iJ.02'l 


82,104,675 

28,271, iSf 
3,889,666 

30,213,788 

25,464,641 
117,429.469 

36,632,112 
2,200,328 
2  I7S,.^I9 


£  . 

58,969,583 

30,181,267 

3,670,301 

31,646,840 

25,167.449 

96,989,293  . 

30,885,059 

1,462,913 

Q.iqo  -04 


57S 


^be  Jnvestors'  IReview. 


Jim-  .5,  1918. 


BANK 

OP   SWEDEN  (18  kroner  to  the  £) 

. 

May  25,  1918. 

May  18,  2918. 

May  II,  1918. 

May  26,  J917. 

Gold 

BalRDoo   (broad  and 

Foreign  Bills 
Swedish  and  Foreign 

Govt.  Securities  ., 
OlsoouDlsaad  Loana 
Nolea  In  olroulriioo 
Dapoaltft  at  notice  . , 

£ 

14,404,000 

7,124,000 

4,OO4,0CO 

13,025,000 
52,439,000 
6,297,000 

14,408,000 

7,211,000 

3,874,000 
13,294,000 
J3,c65,000 

5.844,000 

14,661,000 
7407,000 

3,88],ooo 
13,443,000 
33,659  000 

5,446,000 

11,276,000 

7,368,000 

3,244,000 
8,343.000 
23,119,000 
6,854,000 

BANK  OF  NORWAY  (18  kroner  to  the  £). 


Gold 

BalaBoe  abroad  and 

Foreign  Bills 
Gover'nt  Securities. . 
Discounts  &  Loans. 
Notes  in  Circulation 
Deposits  at  notice.. 


May  31, 1918.    May22, 1918.      Mayi5, 1918     May  31, 1917 


£ 
6,617,000 

3,708,000 

712,000 

18,137,000 

19,647,000 

6,265.000 


£ 

0,6i8,c0) 
3,812,000 

712, tKM 
17,771,000 

I9.5»3.ooo 
6,155.00c 


if 
6,618,000 

3,823,000 

712,000 
18,058,000 
19,640,000 
6,214,000 


£ 
7,161,000 

4,48o,coa 

706,000 

12,610,000 

15.382,000 

6,949,000 


NETHERLANDS  BANK  (12  Florins  to  the  £). 


Gold  and  Silvet 
Bills  and  Advances 
Note  clrcnlatioo 
Deposits.. 


Junes,  1918. 


6o,d6i,333 

14.759.000 

76,633,250 

_4,758,o33 


June  1, 191B 


£ 

60,671,916 
15,804,000 

?7.54l.333 
4,916,500 


May  25, 1918 


( 

60,769,833 

15,776.416 

76,792,083 

_5,904.9'6 


June  9, 1917 

£ 

50,154,000 

12,922,250 

62,610,000 

4,091.833 


SWISS  NATIONAL  BANK  (25  franci  to  the  £). 


Geld  and  silvet 

Bills 

Note  olreolation 
Current  and  deposit 
acoounts 


May  23, 1918. 


£ 
17,316,888 
10,873,444 
26,873,776 

4,110,464 


May  15,  1918, 


£ 

17.307,276 
11,041,7)1 
27,248,168 

4,058,496 


May  7,  1918. 


£ 
«7.«89.95» 
12,022,916 
27.904.152 

4,181,088 


May  23,  1917. 


£ 
15.767.508 
6,141.556 
19.871.584 

3,834,444 


BANK  OP  ITALY   (25  lire  to  the  £). 


Total  eath 
Inland  Bills 
Foreign  Bills    . . 
Advaaces 

Government  securities 
Circulation 

Deposits  at  notice       . . 
Oureent  aaisvnts 


Aprilso,  1918 


£ 

43,013,640 

28,732,360 

884,12a 

26,187,000 

8,802,640 

l90,io8,28» 

35.145,240 

22,829.280 


Apiiil2e,i9t8 


Feb.a3,i9i8, 


£ 
42.314. 
29.285, 

884, 

24,580, 

8,803, 

285,995: 

34,878, 

24.957^ 


£ 
43,772,240 
29  816,360 

897,360 
24,284,400 
8,795.840 
267,249,200 
33,864,520 
20,090,520 


April20,i9i7 

£ 

4O,430.72e 

22,141,400 

832,720 

14,656,840 

'.59I.3M 

158,067,120 

19,142,360 

11,783,560 


IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  £\. 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted   *  .. 
Advances        , .        . . 
Note  circulation 
Deposits 


May  31, 1918. 


•23.305,250 
81,037,550 
727,238,600 
348.100 
600,134,400 
381,739,700 


May  23,  igi8. 


£ 
123.294.450 
75,830,900 
700,022,350 
375.950 
585,012,350 
366,665,800 


May  15,  1918.   May  31, 1917 


123,290,950 
77,792,300 
727,310,450 
30c, 800 
590,193,500 
387,568,500 


128,356,450 
22,334,800 
468,225,300 
486,500 
414,257,700 
226,908,150 


•  9J,**J'°8  House   return     during    March    £459,815,355,   against    £420,879,90 
in  February.  '^ 

^LONDON  COURSE  OF  EXCHANGE. 


Plaoe. 


Amsterdam  . .  . .' 
Paris      

Switzerland,,     .. 

Genoa,  &c 

Spain     

Lisbon  and  Oporto 
Copenhagen..  .. 
Cbristiania  . .  . . 
Stockholm   ..     .. 


Usance. 


June  II,  1918. 


I  Sellers.  Buyers. 


Cable  transfers  . . 
Cable  transfers  . .  , 
Three  months'  bills 
Cable  transfers  . .  . 
Three  months'  bills 
Cable  transfers  . .  , 
Cable  transfers  . .  , 
Three  months'  bills , 
Cable  transfers  . .  . 
Cable  transfers  . .  , 
Cable  transfers  . .  . 
Cable  transfers  . .     . 


9.28 
27.14 
27.54 
18.78 
19.13 
44-30 
1680 
65J 
29S 
15.17 
14.98 
13.86 


9-33 

27.19 
27-59 
18.88 
19-23 
44-45 
16.90 
66J 
30i 
15-27 
1508 
13.95 


June  13,  1918. 


Sellers.  Buyers. 


929 
27.15 
27-55 
18.78 
19.13 
44.70 
16.65 


15.2a 
15  00 

13.85 


9-32 
27.18 
27.60 
18.88 
19-23 

44-9° 
16.75 

30I 
15.30 
15.10 
13-95 


FOREIGN    RATES   OF   EXCHANGE   ON   LONDON. 

Method  of 

If 

Id 

Last 

This 

Quoting. 

Week. 

Wedc. 

Paris,  cheques 

Francs  to  £1 

25 .22  J 

27.16J 

27.16* 
9-3ii 

Amsterdam,  cheques 

Florins  to  £1 

12.107 

9-39 

Italy,  sight 

Lire  to  £1  . . 

25.22* 
25-225 

4430 

44.90 

Madrid,  sight 

Pesetas  to  £1 

l6.69i 

16.654 

Lisbon,  sight 

Pence  to  milrels  . . 

53ld 

3ld. 

3o4d. 

Switzerland,  sight    .. 
Christiania,  sight 

Francs  to  £1 

25.22) 

18.88I 

18.84 

Kroner  to  £1 

18.159 

15034 

15-07 

Stockholm,  sight      .. 

Kroner  to  f  1 

18.159 

13-894 

^.^ 

Copenhagen,  sight   .. 
Petrograd,  sight 

Kroner  to  £  1 

18.159 

15-214 

Roubles  to  £10     .. 

%1? 

nom. 

nom. 

Alexandria,  sight 

Piastres  to  £1 

974 

97! 

Bombay,  T.T. 

Sterling  to  rupee. . 

1/4 

1/5} 

1/5  4 

Calcutta,  T.T 

Sterling  to  rupee.. 
Sterling  to  dollar.. 

1/4 

i/yi 

1/5  4 

Hong  Kong,  T.T 

Shanghai,  T.T 

3/2 

3/2 

Sterling  to  tael     .. 

— 

4/6| 

4fr 

Singapore,  T.T 

Sterling  to  dollar. . 



2/4A 

2/4A 

Yokohama,  T.T. 

Sterling  to  yen     . . 
Dollars  to  £1 

24.58d. 

«/2A 

2/4 

New  York,  cable     . . 

4-86} 

4-7«43 

Buenos  Aires,  T.T 

Pence  to  dollar    . . 

47-58d. 

5?d 

Slid 

Valparaiso,  90  days.. 
Montevideo,  T.T 

Pence  to  peso 
Pence  to  dollar    . . 

sId. 

'^r 

Rio  de  Janeiro,  90  days    ., 

Pence  to  milrels  . . 

I6d. 

<M^' 

ijAd. 

OPEN  MARKET  DISCOUNT.  Last  weok.  ThUweek 

Percent.    Percent. 

TTiirty  and  tlxtj  day  remttted  3^*3)    •■  3&~)) 

Three  month!  ,,  3a — 3I     •*  3fy — 3i 

FourmoDtbi  „  37~3&  '*        3^ 

Stz  month B  ,  .,        .,        „         ,.    3J — jft  ..        3$ 

Three  months  fine  laland  biUt  4-f      ••      4--{ 

Pour  monthi  4i~H    ••    A~t 

Stz  mootkt  4x— 2    ••    4! — ; 

BANK   AND  DEPOSIT   RATES,    l^"  week  ijit  week 

Percent.  Per  ceot. 

Bink  of  Bogland  colntmum  dlteount  rate        ..        «■        ••        S  ••        5 

r.  M         short  loan  rates  ..        ••        ..         ••        —  ••        — 

Bankers' rate  on  depo&lts •        ••        3  ..        3 

BFll  brokers' deposit  rate  (call) 3  ••        3 

„  7  and  14  days'  tiotioe  .. 3i  ••        3i 

Current  rates  for  7  day  loans  3—}  •*      3—} 

,,  foroall  loans  .•        3  •■    39—3 


The  Week's    Stock   Markets. 

It  ha.s  been  a  dull  week  on  the  Stock  Exchange  almost  from 
every  point  of  view.  There  was  a  good  deal  of  uneasiness  at 
the  start  about  the  enemy  pressure  on  the  Western  front,  and 
although  the  tendency  improved  when  it  was  seen  that  the 
Allies'  line  was  holding,  it  did  not  bring  any  appreciable 
accession  of  business.  In  fact,  the  influences  that  had  any 
effect  were  purely  local.  I'ruguay  railways  were  helped  by  the 
nationalisation  proposals  (not  yet  oflScially  confirmed),  and  the 
jjoor  old  Grand  Trunk  plucked  up  a  little  courage  from  the 
arrival  of  the  Canadian  delegates  (headed  by  Sir  Robert 
liorden),  who  are  commissioned  to  negotiate  with  the  London 
board.  The  market  is  firmly  convinced  that  a  more  equitable 
arrangement  can  be  reached  here  than  under  the  influence  of 
local  prejudices  and  rival  jealousies  in  Canada.  However  that 
may  be,  it  is  generally  believed  that  satisfactory  terms  will  be 
arranged  if  the  Dominion  Government  decides  to  take  over  the 
system.  There  was  a  smart  revival  in  Mexican  issues,  owing  to 
the  friendly  interchange  of  views  between  President  Wilson  and 
the  Mexican  delegates.  Elsewhere  a  good  many  industrial 
.shares  were  in  deinand,  and  a  few  Breweries  forged  ahead  in 
great  style,  while  one  or  two  Shipping  issues  also  advanced 
strongly.  Hut  the  real  test  of  business,  taking  the  average  over 
a  long  period,  must  be  the  number  of  transactions  recorded 
officially  from  day  to  day,  and  that  has  be^n  terribly  dis- 
appointing for   a  long  time  past. 

At  the  beginning  of  the  week,  with  rather  indifferent  war 
news,  the  feeling  on  the  Stock  Exchange  was  rather  jumpy, 
and  in  several  directions  prices  tended  to  give  way.  Taken 
all  round,  however,  the  tone  was  wonderfully  good  in  the 
circumstances,  and  when  better  news  came  from  the  Western 
front,  the  tendency  hardened  quite  appreciably.  Very  little 
happened  in  the  gilt-edged  market,  except  that  War  Loans 
generally  were  steady,  and  there  was  quite  a  substantial  in- 
quiry for  some  of  the  leading  Colonial  issues.  In  the  Foreign 
market,  South  Americans,  however,  were  particularly  promi- 
nent, with  Brazilians,  Chileans,  Guatemala,  Honduras,  and 
Uruguay  all  prominent.  Otherwise  business  was  quiet,  but 
Greek  and  Spanish  bonds  were  well  supported.  Japanese  and 
Chinese  were  just  steady,  without  much  happening  to  move 
prices. 

Home  Railways  were  mostly  on  the  duU  side,  because  ol 
an  almost  complete  absence  of  deafings  until  towards  the  end 
of  the  week,  when  the  tone  improved,  and  most  of  the  leading 
issues  gained  a  fraction.  Usually  it  was  only  very  small  frac- 
tions, but  it  is  something  that  the  downward  movements  should 
have  been  arrested.  Canadian  Pacifies  were  scarcely  mentioned 
at  any  time,  and  the  price  has  been  left  practically  unchanged. 
Grand  Trunks,  however,  have  been  rather  a  lively  market  on 
the  arrival  of  Sir  Robert  Borden  and  other  Canadian  repre- 
sentatives, who  will  discuss  the  proposed  nationalisation  of  the 
lines  on  this  side,  and  it  is  certain  that  the  atmosphere  will 
be  more  favourable  to  a  satisfactory  arrangement  in  London 
than  it  would  be  in  Ottawa  or  Montreal.  Argentine  Rails  were 
not  helped  to  any  appreciable  extent  by  the  excellent  traffics  and 
the  near  approach  of  the  end  of  the  financial  year,  and  generally 
prices  gave  way  more  than  they  improved.  There  is  still  a 
feeling  of  great  uncertainty  about  the  labour  position,  and  the 
outlook  is  not  regarded  with  very  much  confidence.  A  few 
other  Fbreign  Railways  were  better,  but  Urugua3-  i.ssues  have 
fallen  back  a  little,  after  the  enthusiasm  created  by  the  an- 
nouncement  of  impending    Government  purchases. 

Bank  shares  were  steady,  but  there  were  so  few  dealings 
that  the  market  was  never  really  tested.  Breweries,  on  the 
other  hand,  have  shown  almost  extraordinary  strength,  Guin- 
ness, City  of  London,  and  Watney  deferred  advancing  in  such 
a  way  as  would  indicate  that  the  more  the  public  are  mulcted, 
the  better  it  is  liked  by  the  trade.  Iron  and  Steel  shares 
generally  were  exceedingly  good,  with  Dick  Kerrs  promi- 
nent on  the  arrangement  with  Siemens  Brothers,  and  Otis 
Steel  also  advanced  smartly,  .\mong  miscellaneous  Indus- 
trials, Cements,  Salt  I'nions.  and  W'elsbachs  were  good,  while 
Schweppes  deferred  fell  back  a  fraction  on  the  squabble  at  the 
annual  meeting.  Shipping  .shares  were  not  particularly  promi- 
nent, but  P.  and  O.  put  on  several  points.  Marconi  issue,* 
also  improved,  possibly  on  the  expectation  that  a  settlement 
will  shortly  be  arranged  with  the  Government. 

Oil  shares  were  irregular,  and  the  movements  are  .so  trifling 
that  they  need  not  be  referred  to  in  detail.  Rubber  shares 
.showed   a   little  harder  tendency   at  one  time,   bat,   in   spite  of 


June  15,  1918. 


XLbc  Jnvestors'  IRevtew. 


579 


the   improvement   in  the   price 
eased    off  towards   the   finish, 
material   factor   in  creating  the 


of  the  commodity,  the  market 
The  Highland  report  was  a 
fresh  weakness,   and   although 


Consols 

WarLoan   3i% 

4i% 

•  t  5%  1949-47-- 
.  J-  "^  4%,  i9i9-4a.. 
India  3% 

.M   3i% 

Australian  5}%,  1920-22  , . 

Canada  4%,  1940-60 

..       4i%.  1920-5 

Argentine  5%  1886 

Belgian  3% 

Brazil,  1913 

„      5%.  1914   

Chinese  1696  

,,       1912 

Egypt  Unified  4% 

Caledonian  defd 

Gt.  Central  pta 

„        M         dfd 

Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

LancB,  and  Yorks 

London  Brighton  defd.  . . 

London  Chatham  ord 

Canadian  Paciho    

E.  Indian  Guar.  4!  %  debs. 

Grand  Trunk  ore,    

Do.  ist  pf 

Do.  srdpf 

Antofagasta  dfd 

B.  A.  &  Pacific 

B.  A.  Gt.  Southern 

B.  A.  Western    

Cent.  Argentine  ord 

Anglo-South  American    .. 

Bank  of  Australasia 

Bank  of  N.S.  Wales 

Barclay  &Co."A" 

Do.       "B" 

Capital  &  Counties   

Chartered  of  India    

Hongkong  &  Shanghai    . . 

Lloyds 

Armstrong,  Whitworth.. 
Birmingham   Small  Arms 

Cammell-Laird 

Cargo  Fleet 

Davis,  D.,5/   

Dorman,  Long  

Associated  Cement 

Borax  dfd 

Bovril    

British  A mer.  Tobacco  pf 

British  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond , 

Castner-Kellner 

Eastern  Telegraph    , 

Kastmans ....   

Gunard 

Furness,  Withy 

P.  &0.dfd 

Royal  Mail 

Anglo  Argentine  istPf... 

BrazilTraction 

Darracq    

Anglo-Egyptian  "B"  .... 

Burmah 

Lobitos 

Mexican  Eagle  pf 

North  Caucasian 

Roumanian  Cons 

Allagar2/-, ; 

Anglo-Dutch,  £1    ■ 

Anglo-Java  Rub.  2/-     .... 

Anglo-Malay2/ 

Ayer  Kuning  £1 

Brit.  N.  Borneo  Trust  £1 

Bukit  Cloha/- 

Bukit  Mertajam  2/-  

Bukit  Sembawang  2/-  . . . . 

Carey  United  ;f  I   

Chersonese 

Cheviot  2/-   

Dalkeith  2/- 

Grand  Central  £t 

Highlands  £1 

Java  Investment  £1  ... 
Johore  Rubber  Lands  £1., 

Kamunin;  2/- 

Kinta  Kellas  2/- 

Labu2/- 

Langen  Java  £1 

Linggi2/- 

London  Asiatic  2/- 

Maiayatam  £1 

Merlimau  2/-   , 

Bechuanaland  Exp 

Brakpan  

Broken  Hill  Prop.  (8/-) 

Cam  &  Motor 

Central  Mining  (£i2)  ., 

Chartered    

City  Deep      

Cons.  Gold  Fields  .... 
Cons.  Langlaagte..  ... 
Crown  Mines  (10/-)  ..., 
De  Beers  dtd.  (£2  xo^i.) 

East  Pool  (5/-) 

East  Rand   

Geduld 

Geevor  (10/-)    ......... 

Gov.  Areas  Mod     

Gt,  Boulder  (2/->    


Last 
Week 


Week 


-N.S.W.5%,  t92X-3    

..      5i%.  i9«o-a 

„     53%Debs 

New  Zealand  4%,  1929  . . 
Queensland  4)%,  1930-5.. 
S.  Australian  5j%  1922-7.  - 
Union   of  S.  Africa  4J%, 

1920-5     

Victoria  4i%,  1020-5 

Westn.  Aus.  4%    

French  WarLoan,  5%  .. 
Japan  4i%  (ist),  1905    .... 

5%.  »907 

Mexican  5%,  1899    

Russia  4   % 

M     4i%,  1909 

„      5%,  1906 

London  and  N.-W 

London  and  S.-W.  dfd.  . . 

Metropolitan 

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth.-Eastern 

Stb.-Eastern  dfd 


Chesapeake. 

Erie 

Southern  . . . 


Leopoldina 

Mexican  ord 

San   Paulo  (Brazilian). 
United  of  Havana 


London  &  Brazilian... 
London  City  &  Midland. . 
London  County  &  Westi 
London  Joint  Stock,... 

Nat.Prov.(;CioJpd) 

Do.  (jCia  pd) 

Standard  of  S.A 

Union  Discount 


Kynochs   

Mond  Nickel  ord 

Nobel,  £1    

South  Durham  Steel 

Thornycroft    

Vickers 


65/6      67/3 
339i      342i 

126  I22X 


9/         8/6 


pf. 


Forestal  Land 

Hudson's  Bay    

imperial  Tobacco  *C 
Lever  Bros.  "  C  "  pf .  . , 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd.  ... 

Pears,  A.  &F 

Underground  Inc.  Bds. 


Coats 

Courtaulds 

English  Sewing  Cotton  ,. 
P'ine  Cotton  Spinners  . . . . 

Harrods  Stores 

Dennis  Bros 

National  Steam  Car 

Rolls-Royce 

Shell 

Spies  (10/-) 

Trinidad  Leaseholds  ... 

Ural  Caspian 

Venezuelan 


s/6 

s/q 

=7/ 

47/9 

1/6 

.1/9 

ll/ioj 

II/7J% 

40/j! 

40/ 

16/9 

!6/9 

*h-^ 

4/1 

3/n 

4/ 

1/ 

1/ 

^th 

ll/ 

1/ 

1/> 

4/9 

5/ 

2/3 

M/6 

53/6 

22/6 

27/3 

3/6 

3/74 

7/3 
35/x 
22/9 

7/9 
31/9 

5/ 

^'3 

71/6X 
12/6 
5« 
■5 
3A 
32/6 
17/6 

i2i 
29/6 

t'i 
til  6% 

3« 
II/3 


2/3 
22/ 
49,6 
23/9 
28/6 
3/7 
3/6 
7/9 
36/3 
23/1 
8/iJ 
36/8 

5/ 

7/ 
4§5 
71/3 

»2/ 

6^ 

14/10} 
3^ 
32/6 
17/6 

i3i 
29/ 
2/9 

22/ 

3i* 
1 1/6 


Pataling  2/- 

Perak  2/-   

Port  Dickson  2/-  

Rub.  Estates  Krian  2/-. 

Rubber  Trust  £1 

Sampang  (Java)  2/-. . . 

Seaport  £1 

Sengat  2/- 

Seremban  £1 

Stalang  £1    

Singapore  Para  2/-    . . . 
Singapore  United  2/-    , 

Straits  Bertam  2/- . . . . 

Sumatra  Para  2/- 

Sungei  Bahru  ^l   ..... 
Taiping  2/- 


Tandjong  £1   

Tandjong  Malim  £1, 

Tebrau  £1  

Telogoredjo  j^i 

Tempeli  2/- 

United  Serdang  2/- . 

Val  d'Or  2/- 

Vallambrosa  2/- 


Kysbtim    

Mashonaland  Agency 
Meyer  &  Charlton    . . 

Modder  "B" 

Do.    Deep 

M^-snre 

Nigerian  Tin 

Pahang  (3/-) 

Rand  Mines  (j/-)   .... 

Renong 

Rio  Tinto(;f5)  

Russo-Asi-itic 

South  Crofty  (5;-).... 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep  


41/6 

3i 

77/ 
46/6 
38/9 
42/6 


5/8 
7/iJ 
28/6 

3/7 
75/ 
27/6 
56/6 
35/6 
2/4, 
8/7i 

3/J 
18/ 


12/3X 


(Ai 


LONDON    PRODUCE   MARKETS, 

Trading  was  confined  to  moderate  limits,  while  prices  were 
generally  maintained,  being  rather  firmer  in  some  cases. 

ScGAR. — No  change  occurred  in  official  quotations. 

Coffee. — Public  sales  met  with  fair  competition,  and  steady 
prices  obtained  except  for  Uganda,  which  tended  easier.  Nairobi, 
mid  to  good  middling,  realised  logs,  to  ii8s.  ;  fair  to  fine  bold, 
iios.  to  131S.  ;  Uganda,  bold  common  to  good,  91s.  6d.  to  99s., 
with  fine  up  to  io8s.  ;  Columbian,  good  bold  palish,  112s.  to  114s.  j 
Santos,  quay  terms,  fine,  79s.  to  79s.  6d.  ;  Central  American  (in 
prize),  bold  greenish  and  greyish,  109s.  to  115s.  Futures  inactive 
and  nominal. 

Rice,  also  beans,  were  fairly  well  patronised. 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 
WEEK  ENDING    JUNB  14.  1918. 


Last 
Week. 


This 
Week. 


■a(kr— per  owt 
duly    85/8,  98  % 
polarisation 

Tate's  Cubes 

Crushed . .     . . 

Granulated  ., 

Lyle's  granulated 

Foreign  granu- 
lated, first  marks 
f.o.b.,  spot 

GermanCubef.o.b. 

French  Cube 

prompt 

Crntalllsed,  West 
India 

Beet,    88%    f.o.b 

laa— pec  lb., duty 

I/-  lb. 
Indian  Pekoe 
Broken    ,, 
Orange    ,,  .. 

Broken  ,, 
Pekoe  Souchong 
Ceylon  Pekoe  .. 
Broken  ,, 
Orange  ,, 
Broken  ,, 
Pekoe  Souchong 

Goooa  —  per  owt. 

duty  6d.  per  lb. 
Trinidad — per  owt 
Grenada 

West  Africa..  .. 
Ceylon  Plantation 
Guayaquil  . .  . . 
OofTea — per    owt. 

duty  42/-  per  cwt. 
Bast  India    ..     .. 

lamaloa 

Costa  RioB  ..  .. 
Provltlon*— 

Butt«r,percwt. 
Australian  linest 
Argentine     . .     . . 
Irisn  Creameries 
Dutch  ditto..    .. 
Russian  finest    .. 
Paris  baskets 
Danish  finest 
Brittany     rolls  — 

doc. lb 

Baoon — per  owt. 

Irish      

Continental . .  . . 
Canadian  . .  . . 
American  . .  . . 
H»i»— per  owt, 

Irish      

Canadian  . .  . . 
Amerloao     ,.    .. 

Obeaia — pec  owt. 

Dutch 

Canadian  ..  ,. 
English  Cheddar 
Wilts  loaf  . .  . . 
New  Zealand      .. 

BlC6— per  cwt. 

Japan     

Rangoon  2  stars  . . 

Kti*— per  lao. 

English 

Irish      

Danish 

Bpalter— 
G.O.B.  as  to  posi- 
tion     

Flour— per  sack. 
G.  R.  ex  Mill.. 


£    B.  d 


3    4  9 

»  17  9 

2  17  9 

2  17  9 


nom. 
nom. 


2  17    9 
nom. 

s.  d. 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

*  1  4 

I  4 

I  4 

s.  d.  3  d. 

86  0  90  o 
79  o  85  o 
55  o  65 
t^5  0100  o 
np  to  90  o 


no  0  135  0 
80  3  160  3 
iioo  137  o 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


188; 

172/ 
169/-172; 
1 69/- 1  ho/ 

nom. 
162/-165/ 
i25/-i65y 


nom. 

nom. 

102/8-149/4 

nom. 

nom. 

s.    d. 

41     3 
26     3 


39  0-41  o 
38  0-39  0 
nom. 


jf54  £50 
44/3 


£   «.    d. 


3    4  9 

2  17  9 

2  17  9 

2  17  3 


nom. 
nom. 


2  17    9 
nom. 

i.d.  s.  d 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

1  4 

I  4 

I  4 

s    d.  8.  d. 

56  o  90  o 
79  o  85  0 
55  o  65  o 
85   0  100  0 

up  to  90  o 


iio-o  135-0 
80-0  160-0 
ii»-o  137-d 


252/ 
252/ 

nom. 
nom. 
nom. 
nom. 
nom. 

nom. 


188/ 

172/ 
169;- 172/ 
l69/-t8o/ 

nom. 
162/-165/ 
125/-165/ 

nom. 
nom. 
103/4-153/8 
nom. 
nom. 

t.    d. 
4"     3 
26     3 


40  0-42  o 

38  0-38  6 

nom. 


£54  £50 
44/3 


Wool— per  lb. 
Australian 

Scoured  Merino 
Scoured  Cr'ssbr'd 
Greasy  Merino 
Greasy  Crossbred 
New    Zealand 

(scoured)  Merino 
Greasy  Crossbred 
Cape  snow  white 

Inillarubborp.lb 

Plantation,      Spot 

Ccepe..    .. 


Goal— pec  ton 

Durham,  best 

Seconds 

East  Hartlepool.. 

Seconds       ..    . 

Steams,  best 

Seconds       ..    . 

Load— pec  too. 

English  Pig..     . 
Foreign  solt,  net 

Qulokallvar— per 

bottle  firsthand 


Tin— per  ton 
English  Ingots 

Do.    bars 
Standard  cash 
TinPlateSiPecbox 

Gopper— pec  ton 
English,    Tough, 

per  ton 
Best  Selected 
Sheets  ..    .. 
Standard     . . 


Jute— pec  ton 
Native   Bests    for 
shipment 

Olla— 

Linseed,  per  ton 
Rape,  crude  .. 
Coit'nSeea.oruae 
Petroleum  Oil, per 

8  lbs. 

Water  White 

Oil  Seeds, LiDseed 

Calcutta— pel  ton 

Spot 


Rape     . .     .  • 

Iron — pec  ton 

Cleveland  Cash  . . 

Tobacoo  —  duty, 
unmanufactured 
8/2-10/4S  pec  lb, 

Viigluiaieat. 

Kentucky  leaf    . 

Lalakia 

Havana..    .. 

Cigacs,  duty  15/7 
pec  lb.       . . 


Tarpontlno— 

American  Spot 

Copra— pec  ton 

Malabar       . .     . 

Ceylon 

F.M.S.  Singapore 
P.M.   Straits 


Last 
Week. 


£    8.  d, 

nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom 


0    1    ij 


nom. 
nom. 
nom 
nom. 

]2  6 

38  6 

£    s.  d. 

nom. 
£29i-£28J 


jC334 
£335 
£351 


nom. 

£ti9-£i23 

£149 
f iio-iioi 


nom. 
£66 

£60 

l/ioj 
l/tij 


£37  'o 

f29-10/'30 


I  6  -2  6 
10-16 
nom. 
16-6    6 

2/  upds. 


118/ 


46    o 
46    o 

45    !0 
45  'O 


Thla 
Week, 


£  8.  d, 

nom. 
nom. 
nom. 
nom. 

nom 
nom. 
noia. 


nom. 
nom. 
nom. 
nom. 
32  6 
28    6 

i     8.  d. 

nom. 
£29i-£28i 


£333-£334 

£33»-£335 

£329 


nom. 
£u9-£U3 

£-49 
£no-iio4 


nom. 
£66 
£60 


i/ioi 
l/i>i 


£37  10 
£29-io£3» 


I  6-2    6 
I  0—1    6 
nom. 
1  6-fi    6 

2/  upda. 


118/ 


46  o 
46  o 
45  10 
45  "> 


quotations  fini.shed  above  the  lowest,  the  feeling  in  the  market  is 
far  from  confident. 


Cocoa  in  good  request,  but  offers  still  sparingly  made,  which 
checks  trade. 

Spick.— Cloves  quiet  of  sale.  Fair  Zanzibar,  spot,  sellers, 
2S.  5d.  Pepper  in  good  request,  and  prices  firmer,  especially  for 
white  sorts.  Fair  Tellicherry,  spot,  sold,  is.  5Jd.  to  is.  7d.  ; 
Aleppy,  IS.  6d.  to  is.  6Jd. ;  Singapore,  is.  6Jd.  to  is.  6Jd.  ;  white 
ditto,  2S.  gjtj.  to  2S,  lod.  ;  and  Muntok,  as.  lod.  to  3s.  Pimento 
quiet,  spot,  sellers,  sjd.  Tapioca  steady,  with  sales  of  fair  flake 
spot  at  8d.  per  lb. 

Shellac. — There  was  a  steady  inquiry  on  the  basis  of  340s.  to 
345s.  for  fair  free  second  orange,  spot,  as  to  quantity. 

Rubber. — With  rather  more  reserve  on  the  part  of  sellers  the 
market  exhibited  a  firmer  tone,  and  a  moderate  business  trans- 


sKo 


^be  Jnvestors'  IReview. 


June  15,  1918. 


pired  at  a  slight  advance  in  prices.  Plantation  crepe,  spot,  sold, 
2S.  id.  to2s.  2d.  ;  July,  2S.  ijd.  to  2s.  2d. ;  July-December,  23.  ijd. 
to  IS.  3|d,  ;  Octooer-December,  2s.  2d.  to  2S.  4d,  Smoked  ribbed 
sheet,  spot  and  June,  done  at  23.  to  2S.  o|d.  Fine  hard  Para, 
spot,  quoted  3s.  ojd.  ;  and  soft  ditto,  sellers,  at  3s.  id.  per  lb. 

Corn  (Mark  Lane). — Business  proceeded  quietly  this  week, 
though  the  general  tone  remained  steady.  Native  wheat  quoted 
77*.  gd.  per  504  lbs.  Of  imported  descriptions,  No.  i  Northern 
Manitoba,  82s.  4jd.  ;  No.  2  ditto,  also  hard  winter,  8es.  gd.  :  red 
-winter,  793.  gd.  ;  Australian,  85s.  6d.  ;  La  Plata,  82s.  6d.  ;  Indian, 
37s.  to  88s.  ;  and  blue  stem,  82s.  6d.  per  496  lbs.,  landed.  Flour  : 
G.R.,  44s.  3d.  per  sack,  ex  mill,  while  imported  ranges  from 
50s.  3d.  to  51S.  3d.,  as  to  quality,  per  280  lbs.  Barley  :  English, 
nominally  62s.  gd.  to  63s.  gd.  per  448  lbs.  Maize  :  American 
mixed,  79s.  6d.  to  793.  gd.  ex  ship,  and  8is.  3d.  to  8is.  6d.  landed, 
being  sparingly  offered.  Oats  scarce,  and  firmly  held.  Native 
quoted  48s.  6d.  per  336  lbs.  ;  American  white  clipped  No.  2, 
<3is.  6d.  to  62s.  6d. ;  and  Canada  Western  No.  2,  63s.  6d.  per  320 
bs.,  ex  quay. 

Cotton  (from  our  Manchester  correspondent). — The  market 
dnring  the  past  week  has  presented  a  very  strong  appearance. 
Transactions  have  been  most  diflScnlt  to  arrange.  Demand  on  the 
whole  has  again  exceeded  supply.  Numerous  producers  have  been 
unable  to  accept  the  business  offering,  the  obstacle  to  progress  in 
most  quarters  being  delivery  rather  than  price.  The  prospects  for 
supplies  of  American  cotton  next  season  are  encouraging,  and 
there  is  nothing  to  complain  about  as  to  the  outlook  for  the 
new  Egyptian  growth.  The  new  regulations  of  the  Control 
Board  with  regard  to  curtailment  of  production  are  now  coming 
into  force,  and  the  majority  of  factories  in  Lancashire  will  hence- 
forward only  run  for  40  hours  a  week  instead  of  55J  hours,  with 
about  half  the  machinery  stopped.  A  fair  amount  of  inquiry  has 
been  about  chiefly  for  certain  outside  markets,  the  Government, 
*nd  the  home  trade,  but  business  has  not  flowed  freely  by  any 
means.  Standard  goods  for  India  and  China  remain  very  slow. 
Some  moderate  lots  have  changed  hands  for  Java,  Singapore,  and 
the  Straits  Settlements.  Stock  lots  in  fancy  materials  have  been 
much  sought  after  in  the  home  trade  houses  by  retailers.  A  con- 
siderable demand  continues  to  be  experienced  in  fine  strong 
materials  for  aircraft  purposes.  Prices  in  Ame»ican  yarns  have 
gone  against  buyers.  Fresh  high  records  have  been  established, 
and  extraordinary  figures  have  been  paid  for  certain  counts  and 
qualities  for  quick  delivery.  Very  little  has  been  dooe  in  export 
yarns.  Egyptian  spinnings  have  been  in  encouraging  request  and 
producers  continue  in  a  very  strong  position. 


MINING  NEWS. 


The  Week  in  Minos. 


Business  has  been  on   a  small  scale  in   the    Mining   markets 
ihis  week,  but  the  tone  has  not  been  unsatisfactory  for  hol4ers, 
and  there  have  been  several  rather  striking  movements.  Despite 
the  war  and  its  demand  for  the  practice  ot  thrift,  the  diamond 
companies  appear  to  be  doing  well,  for  the  market  is  going  for 
a  distribution  of   10s.  on  De  Ueers  deferreds  at  the  end  of  this 
month.     There  has  been  further  buying  of  tin  shares,  though 
the  pride  of  the  metal  has  fallen  further  to  ;^329  a  ton. 
South  and  West  Africans. 
The   principal  item  of  interest  in  the  South  African  market 
has  been  the  revival  of  demand  for  Gold  Fields  issues.     This 
was   due  to  the  announcement  that  the   potash  subsidiary,   the 
American    Trona    Corporation,    will  this  month   pay    the   four 
and  a-half  years'  accumulated   interest  on  its  7  per  cent,  pre- 
ferred  stock.      Gold    Fields   have   improved    to  32s.   6d.,    Gold 
Mines   Investments  to  23s.,  and  Gold  Trusts  to  30s.   3d.     New 
Modders,  on  the    return  for  last   month,     rose    to     23^^,    and 
Modder  Leases  'aX  3!^  and  Springs  at  t,%  have  also  been  sup- 
ported.    The   rest  of  the  market  has  been   under  the  influence 
of    the    Transvaal    Provincial    Council's    proposal    to    increase 
mining  taxation,  and  also  of  the  engineers'  demand  for  higher 
wages.       Among     diamond    shares,     De    Beers    deferred     have 
been  supported    in   the  expectation  of   a    dividend   of    ids.    per 
share,    and   have   risen    |^   to    13,'/^,    while   the    preferred    have 
spurted   \  to  13}^.      Last  year  ;^'i    a   share  was  declared,   but 
it    was    not    expected    until    just   recently    that    any    dividend 
would   be  paid  this  year.      In    the   Rhodesian  section,    Gaikas 
have  relapsed   J^    to   |^,    but    Lonely  Reefs     at    35s.    6d.    and 
Rezendes  at  4i  are  both  higher.      Shamvas  have  been  firm  at 
ijf,  on   the  quarterly  report  showing   that   on    March   31   the 
ore  reserves  stood    at   1,687,000  tons,   valued    at  4.5   dwts.,    an 
increase  of  79,000  tons.     West  Africans  have  been  neglected. 
Copper  akd  Miscell.aneous. 
Copper  shares  have  been  firmer,  with,  however,  no  striking 
movements  to  record.     Tin  shares  have  been  in  request,  notably 
East  Pools,  which  rose  to  29s.  6d.  on  the  dividend  declaration. 
Tronohs  have  risen   >^   to    i^  on  the  good    May   return,   and 
Ropps  at  24s  6d  and   Siamese  at  3^  are  also  higher.     South 
Croftys,   on    the  other  hand,  have    fallen    332   to   z\.     In   the 
Broken   Hill    group,    British    Proprietarys    have    weakened    to 
49s.,  and  Zincs  to  26s.,  but  South  Silvers  are  J  higher  at  iii. 
Mexican    Mines   have    been    in    good    demand,    on    the   Camp 
Bird  news  of  the   success   of  the  tunnel  in   striking   the   main 
vein.     Camp   Bird   ordinarys   rose   to   nearly    14s.,    but  profit- 
taking    caused   a    reaction    to    iis.    gd.,   which    shows    a  rise  of 
2s.  3d.  on  the  week.     The  prefs.  are  gd.  higher  at  14s.  gd.,  and 
Mexico  of  El  Oros  have  risen  %  to  ^%.     Tomboys  have  been 
marked  down  2s.   to  15s.,  on  the  reduction  in  dividend.     Rus- 
sians have  been  rather  firmer,  Russo-Asiatics  being  marked  up 
to  2)i.     Kanbauk  Wolframs  have  fallen  is.  to  31s.   6d. 


Transvaal  Gold  Production. — The  production  of  gold  in 
May  amounted  to  /3, 148,915,  a  decrease  of  /i6i,703  on  the 
same  month  of  last  year.  The  following  table  shows  the  monthly 
production  since  January,  1913  : — 


Month. 

J9'3- 

1914. 

I9'5. 

1916. 

1917. 

1918. 

£ 

I 

I 

I 

£ 

{. 

January   .. 

3.353,"6 

2,708.470 

3.037.058 

3,344,948 

3.324.418 

3.033,65s 

February.. 

3,118.325 

2,6eo,i«6 

2,872,406 

3,201,063 

3,063.976 

a,8c2,477 

March  .... 

3,358,050 

2,917.346 

3,202,514 

3.3*4,121 

3.343.363 

2.957.614 

April     .... 

3,334.35* 

2,904.924 

3,160,651 

3,205,643 

3.'55.'2i 

3,046,045 

May 

3.373.998 

3.059,340 

3.243.347 

3.303,377 

3,310,618 

3,148,915 

I  une 

3.173,382 

3.049,558 

8,208,124 

3,235.767 

3,227,101 

— 

July   

2.783.917 

3."«.398 

3.272.258 

3,332.891 

3.219.094 

— 

August.... 

3.092,754 

3,024,037 

3.307,975 

3,318,116 

3,214,079 

— 

September 

2,999,686 

1,982,630 

3,299.423 

3.277,408 

3.'35,8S7 

— 

October    .. 

3,051,701 

3.' 16.754 

3,38»,i«a 

3,365,642 

3.191.279 

_ 

November 

2,860,788 

3,040,677 

3.317.534 

3.326,253 

3,070,426 

— 

December 

2.»57.938 

2.952,755 

3.317.949 

3,289,705 

3.068,639 

— 

Total.. 

37,35«.040 

35.5M,075 

38,627,461 

39.4>4,934 

38,3J3.9«i 

14,9*8.704 

Native  Labour  Returns. — A  further  and  larger  decrease  is 
shown  in  the  labour  supply.  The  total  shows  a  net  loss  of  2,704, 
the  gold  mines  losing  2,613  labourers. 


Month. 


May,  1917 

June   

July    

August 

September  ;.. 

October 

November  ... 
December  ... 
January,  1918. 

February 

March    

April 

May    


Natives 
on  Gold 
mines. 


180,168 
175.727 
171.653 
170,817 
17'.334 
170,33« 
169.083 
17S.740 
176.424 
181,066 
183.055 
182,492 
179-879 


Natives 
on  Coal 
mines. 


11.432 
11,258 
11,381 
11,401 
11,601 
11,841 
".633 
11.695 
11.469 
11.243 
11,076 
11.322 
11,251 


Natives 


Diamond 
mines. 


Total 


5*>5 
5.369 
5,223 
5,028 
4.791 
4.620 
4.620 
4.593 
4.7"5 
4,»25 
4.745 
4.753 
4.733 


197.4OS 
'92.354 
188,257 
187.246 
187.726 
186,792 
185,336 
189,026 


197.134 
198,876 
■98.567 
195.863 


Randfontein  Central. — The  accounts  for  1917  show  that 
2,017,181  tons  were  crushed  for  ;^2,467,636,  or  24s.  5d.  per 
ton,  these  figures  comparing  with  2,209,622  tons,  ;t2,835,735, 
and  25s.  8d.  per  ton  respectively  in  igi6.  The  working  profit 
was  /,4i;9,697,  or  4s.  7d.  per  ton,  as  against  ^£834, 555,  or 
7s.  Gd.  per  ton.  A  total  profit  of  .1^478,063  is  shown,  a  decrease 
of  ^^356,492.  Including  ;f402,57o  brought  forward  and  /i5,63o 
of  reserves,  the  total  balance  is  £fic^,zi>y  Debenture  interest, 
depreciation,  and  other  charges  absorb  ^^561, 245,  leaving 
j/^335,oi8  to  be  carried  forward.  It  will  be  recalled  that  when 
the  control  of  the  Robinson  group  was  transferred  to  the  Bar- 
nato  interests,  it  was  decided  to  reduce  the  monthly  profit  to 
;^5o,ooo,  but,  owing  to  scarcity  of  labour,  the  profit  fell  con- 
siderably below  this  figure.  The  shaft  position  having  been 
discovered  to  be  seriously  hampering  the  efficient  working  of 
the  property,  it  was  decided  last  autumn  to  sink  two  new 
vertical  shafts  to  replace  the  six  shafts  on  the  South,  North, 
and  Robinson  sections.  Recent  development  work  has  revealed 
good  values,  and  a  high  percentage  of  payability  of  both  the 
Randfontein  Leader  and  West  Reef  opened  up  in  the  lowest 
levels.  The  ore  reserves  have  been  recalculated  on  a  difierent 
basis;  this  calculation  gives  a  total  of  5,185,000  tons,  of  a 
value  of  6.8  dwts.  over  53  inches,  an  increase  of  695,000  tons. 

LANGL.4AGTF.  ESTATE.— During  191 7  there  were  crushed 
5^9,618  tons  for  a  yield  of  ;£62i,6o2,  or  23s.  per  ton.  Costs 
averaged  i8s.  lod.  per  ton,  and  the  profit  rate  was  is.  id. 
lower  at  4s.  2d.  per  ton.  The  working  profit  was  ,;^i  12,962,  and 
the  total  profit  ;^I32,9I3,  against  ^^157, 061.  Dividends  amount- 
ing to  10  per  cent,  have  been  paid,  against  5  per  cent.,  and 
;^7S>557'  ^"  increase  of  ;f  13,077,  is  carried  forward.  Reserves 
of  ore  amount  to  1,060,594  tons,  valued  at  6.9  dwts.  over  54 
inches.  There  have  been  excluded  from  this  estimate,  as  in- 
accessible and  unpayable,  305,214  tons,  which  were  included  at 
the  close  of   1916,  when  the  total  was  2,106,937   tons. 

Transvaal  Estates  and  Development. — The  accounts  for 
1917  show  a  profit  of  ;£2i,5io,  which  enables  the  company  to 
resume  the  payment  of  dividends  after  an  interval  of  four 
years.  The  dividend  is  6d.  per  share,  free  of  tax,  and  the 
balance  carried  forward  is  reduced  from  ;^io,226  to  Cl-f^}i- 
Sales  of  land  amounted  to  ;£i4,53o,  on  which  a  profit  of  j£'3,3s6 
was  made.  Sales  in  the  current  j'ear  already  amount  to 
;,f  11,000. 

MoNCU  (Nigeria)  Tin. — The  profits  for  1917  were  .1^37,928. 
against  ;f  17,765.  It  is  proposed  to  pay  a  final  dividend  of  12^ 
per  cent.,  less  tax,  making  22*  per  cent,  for  the  year,  against 
15  per  cent.,  tax  free,  for  igio,  leaving  ;^2i.2ii  to  be  carried 
forward,  against  ;f4,2g4  brought  in.  This  increased  balance, 
however,  is  subject  to  income-tax  and  excess  profits  duty  esti 
mated  at  ;ifi7,ooo.  The  output  of  tin  concentrate  was  571  tons, 
against  557  tons. 

BisiCHi  Tin. — The  output  in  1917  was  278  tons,  as  compared 
with  473  tons.  Of  this,  253  tons  were  realised  at  an  average 
price  of  ,^194  12s.  2d.  per  ton,  against  [,\T,f>  5S.  2d.  in  1916. 
Owing  to  war  conditions,  costs  increased  considerably,  averag- 
ing /iig  I2S.  8d.  per  ton,  against  /Sg.  The  total  profit  was 
;f 28,382,  and,  after  allowing  for  depreciation,  the  nett  balance 


June  15,  1918. 


XTbe  Jnvestors'  IReview* 


^8i 


is  ;^25,25i,  against ^27,663.  But  the  dividend  is  maintained 
at  12J  per  cent,  by  the  declaration  of  a  final  dividend  of  7^ 
per  cent.,  leaving  ^^6,342,  against  ^6,ogi,  to  be  carried  for- 
ward. 

OuRO  I'EETO  OF  Brazh.. — The  report  for  191 7  shows  that  the 
output  of  gold  was  jf  115,432,  and  the  total  income  ;^i  16,725. 
The  profit  declined  from  ;^'7,244  to  £'\,S2'i-  Depreciation,  in- 
cluding ;^i,ii2  written  off,  absorbs  ^^2,812,  the  reserve  gets 
p^i,ooo,  and  .^663,  against  ;^7i6,  is  carried  forward.  The 
directors  do  not  deem  it  advisable  to  recommend  a  dividend 
under  the  existing  conditions.  There  were  crushed  82,500 
tons,  a  decrease  of  5,100  tons,  and  the  output  was  28,840  ozs., 
a  decrease  of  1,404  ozs.,  the  yield  working  out  at  £1  7s.  iijd. 
per  ton,  against  £i  7s.  8^. 

To.Miiov  C.oi.D. — In  announcing  an  interim  dividend  of  6d. 
per  share,  tax  free,  against  is.  per  share  a  year  ago,  the  direc- 
tors report  that  the  general  manager  considers  that  it  is  impera- 
tive to  reduce  the  average  jnonthly  profit  from  $30,000  to  $10,000 
until  more  favourable  conditions  pre\'ail.  This  is  due  to  in- 
creased taxation  and  higher  wages  and  costs  of  materials. 

Nipissixa. — The  report  for  1917  shows  that  4,212,000  ounces 
of  silver  were  produced,  as  compared  with  4,044,668  ounces  in 
1916.  The  yearly  average  selling  price  of  silver  was  83.19  cents 
per  ounce  at  Cobalt.  Although  the  cost  of  labour  and  materials 
increasec^,  the  cost  per  ounce  of  silver  produced,  at  25.117 
cents,  was  only  about  i  cent  per  ounce  higher.  The  nett 
receipts  consequently  rose  from  $2,051,000  to  $2,700,000.  Stock- 
holders again  received  $1,800,000  in  dividends,  making  a  total 
since  July,  1906,  of  $16,750,000.  Surplus  profits  have  been  in- 
creased by  $750,000  to  $2,731,000.  The  known  ore  reserves 
contain  about  8,100,000  ounces  of  silver,  or  one  million  less  than 
a  year  ago,  but  owing  to  the  higher  price  of  silver  the  value  of 
the  reserves  is  greater  by  more  than  $700,000. 

ESPERANZA.— The  profits  for  1917  were  ^20,423,  as  compared 
with  ;^8,di2.  Income-tax  absorbs  ^^5,262,  the  dividend,  No.  59, 
paid  in  July,  ^^17,062,  and  ^i,6go,  against  .1^3,592,  is  carried 
forward.  During  the  year  the  mill  treated  181,935  tons,  as 
.against  113,921  tons,  the  working  profit  being  jf 76,032.  From 
this  ;^2,4o6  was  written  off  on  account  of  El  Sirio  Mine  ex- 
penses, and  ^'48,608  was  placed  to  reserve  for  depletion  of  ore 
and  depreciation  necessitated  by  the  incidence  of  the  American 
Income-tax  Acts.  On  January  i  last  the  ore  reserves  were  esti- 
mated at  65,368  tons,  valued  at  ;f  141,357,  with  a  profit  value  of 


New  Modder. — 71,500  tons;  profit,  ;f79,998  (April,  £y',()3f>)- 
New  Primrose. — 18,300  tons;  profit,  ;^i,o99  (April,  £^86). 


MINING    RETURNS    FOR    MAY, 


Ashanti. — 7,516  tons;  value,  ;f37,552  (April  profit,  ;^i4,o8i). 

Aurora  West. — 14,250  tons;  profit,  £i,iy()  (April  ;^i,26o). 

Balaghat. — 6,500  tons;  1,893  ozs.  fine  gold  (April,  ^,619  ozs.) 

Bantjes. — 19,590  tons;   profit,   £in  .(April,  £i(>). 

Brakpan.— 56,500  tons;  profit,  ;f 38,331   (April,  ^35,068). 

Bullfinch.— 4,741   tons;   profit,  ^763  (March,  £(1^2). 

Champion  Reef. — 27,186  tons;  8,785  ozs.  gold  (April,  8,172 
ozs.). 

City  and  Sub. — 24,508  tons;  profit,  ^7,261  (April,  £i,<)i<i). 

City   Deep.— 62,000  tons;  profit,  ;^50,847   (April,  ;^46,445). 

Cons.  Langlaagte. — 46,500  tons;'  profit,  ;^iS,o45  (April, 
;£■  5.094)- 

Cons.     Main     Reef. — 57,550     tons;     profit,     ;^ii,264     (April, 

Crown. — 162,000  tons;  profit,  ^^41,297  (April,  ^45,656). 
Durban   Rood.    Deep. — 26,650    tons;     profit,    ^^2,327     (April, 

East  Rand  Prop. — 119,000  tons;  profit,  ;^5,26i  (April,  ;^6,59i). 

Ferreira  Deep. — 45, 500  tons;  profit,  ^.f 22, 301  (April,  £2o,(i6y). 

Gaika. — 3,049  tons;  profit,  ;^i,iio  (March,  ^^1,102). 

Geduld. — ^^46,100  tons;   profit,  ^'21,116  (April,  ^^19,379). 

Geldenhuis  Deep. — 51,800  tons  ;  profit,  ;^2,248  (April,  ^2,811). 

Ginsberg. — 13,790  tons;  ,^12,856;  profit,  ;^456  (April,  lossj 
/<)53)- 

Glencairn.— 19,750  tons;  profit,  ;^999  (April,  ^^498). 

Globe    and    Phoenix. — 6,442    tons ;      profit,     .,£■19,967 ; 
^'i  3.389)- 

Glynn's     Lydenburg. — 4,065     tons;      profit,      .,£3,519 
£\;7'^)- 

Golden    Horse     Shoe. — 13,776    tons;     profit,     £7,106 
;^S,837). 

Gov.     Areas     Mod. — 112,000    tons;     profit,     ^£70,576 
;i'65.37')- 

Ivanhoe  G.  Corp. — 18,605  tons;  profit,  ;£'5,4oo  (April.  j£'5,4oo). 

Jubitil. — 1,100  tons;  402  ozs.  fine  gold  (April,  423  ozs.). 

Jupiter. — 21,600  tons;    profit,  .,£217   (April,   ^£2,296). 

Kalgurli.— 5,734  tons;  profit,  ^^523  (April,  £^i(>). 

Knight    Central. — 24,800    tons;    profit,    .,£1,113    (April,    /300. 

Knight's  Deep. — 99,000  tons;  profit,  ^£5,009  (April,  ;£322). 

Langlaagte    Estate.— 45,700     tons;    profit,     ^£11,568     (April, 

Lonely  Reef. — 4,940  tons;  profit,  ;,£7,8oo  (April,  ^9,666). 
Luipaards  Vlei.— 20,760  tons  ;  loss,  ^£208  (April,  loss,  £tj^). 
Meyer   and   Charlton. — 11,580  tons;   profit,    ^^20,304     (April, 

;^20,050). 

Modder  "  B." — 50,000  tons;  profit,  ;,£'57,ooi  (April,  ;^54,562). 
Modder  Deep.— 44,300  tons ;  profit,  ^50,549  (April,  ^50,885). 
Mysore. — 70,828  tons;  15,600  ozs.  fine  gold  (April,  15,346  ozs.). 
New  Goch. — 17,200  tons;  profit,  ;£i4  (April,  profit,  ;£'29i). 
New  Heriot. — 12,500  tons;  profit,  ;£469  (April,  ^1,014). 
New     Kleinfontein. — 82,800    tons;     profit,     ;^io,i64     (April, 
.£5.4^0). 


April, 
(April, 
(April, 
(April, 


profit,  £2,tyo%  (April,  ^^2,646). 
1,138  ozs.  gold  (April,  1,133  ozs.). 


New  Unified. — 13,200  tons; 
N.  Anantapur. — 3,()oo  tons  ; 

Nourse. — 45,100  tons;  _,£'47,2i9;  profit,  ;^5,o2i  (April  .,£3,630). 
Nundydroog. — 22,902  tons;   1,893  '^^^-  gold  (April,  6,513  ozs.). 
Ooregum. — 30,446  tons;  8,157  ozs.  fine  gold  (April,  7,398  ozs.). 
Pahang  Cons. — 17,500  tons;  output,  145  tons  black  tin. 
Princess    Estate. — 20,000    tons;    loss,     ^£2,614     (April,       loss, 
/'.605). 

Randfontein    Cent. — isS.ioo    tons;     profit,     ^£1^,982     (April, 

;£io.335>- 

Robinson  Deep. — ^48,500  tons;  profit,  ^£9,214  (April,  j£7,583). 

Roodepoort  U. — 22,656  tons;  loss,  ;f  1,572  (April,  loss,  ^^2,503). 

Rose  Deep. — 56,500  tons;  profit,  ;£'i4,2i7  (April,  ;£i5,o53). 

Shamva. — 54,034  tons;  profit,  ;^ii,465  (March,  ;£ii,o78). 

Simmer     and     Jack. — 39,600    tons;     profit,     ;^9,66o     (April, 
;^'o,956). 

Sons  of  Gwalia. — 13,063  tons;  profit,  ^^2,156  (April,  ^^1,072). 

South  Kalgurli  Con. — 8,954  tons  ;  profit,  £767  (April,  ;^6io). 

Simmer  Deep. — 43,400  tons;  profit.  ^24  (April,  ;^876). 

Springs. — 40,000  tons  ;    profit,  ^£38,237  (April,  ;£'36,097). 

Sub  Nigel. — 9,650  tons;  profit,  ;^8,444  (Ap^'il.  ^£8,304). 

Sudan. — 1,152  ozs,.;  value,  ;,£4,o94  (Mar.,  ^£4,088). 

Transvaal  Gold. — 14,430  tons;  profit,  ^4,851  (April,  ;£^3,4i5). 

Van  Ryn. — 32,000  tons ;  profit,  .^6,584  (April,  ^£6,693). 

Van  Ryn  Deep.— 42,300  tons;  profit,  ;£5o,o9i  (April,  ^£50,113). 

Village  Deep. — 50,500  tons;  profit,  ^£12,195  (April,  .^4,035). 

Wanderer. — 10,830  tons  ;  profit,  ;£^192  (Mar.,  loss,  ;f  1,863). 

West  Rand  Cons. — 35, 350  tons;  profit,  ;£'i,3o6  (April,  ;£'i,oi!). 

Witwatersrand. — 40,800  tons;  profit,  ^11,074  (April,  ;£'ii,04()). 

Wit.  Deep. — 35,460  tons;  profit,  ;^i,68i   (April,  ^£159). 

Wolhuter. — 34,450  tons;  profit,  ;^7,oi4  (April,  ^£6,566). 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 

Period. 


Gross 
Profit. 


Ceylon    Proprietary     Tea 

Estates (Dec.^ 

Do Prev 

Chester's  Brewery    (Mar.) 

Do Prev 

First  Scottish  Am.  Trust 
(May) 

Do Prev. 

Indian  and  General  Invest- 
ment Trust  ....  (Apr.) 

Do Prev 

James  Hinks  &  Son. .(Mar.) 

Do Prev 

Kalgoorlie  Electric  Power 
and  Lighting  Corpora- 
tion   (Dec.) 

Do Prev. 

KandapoUa  Tea  Co.. (Dec.) 

Do (Prev.) 

San  Sebastian  Nitrate  Co.. 
(Dec.) 

Do Prev. 

Standard  Tea  Co. of  Ceylon 
(Dec.) 

Do Prev. 

Tedcastle,        McCormick, 

and  Co (Mar.) 

Do Prev. 

Transvaal  Estates  and  De- 
velopment Co.    (Dec.) 

Do (Prev.) 

Wm.      Roberts     (Tipton) 

(Mar.) 

Do Prev. 


60.400 
62,620 


42,290 
54.720 

26,400 

27,320 

9.050 

10.210 


19,720 

21,990 

7.740 

9,040 

10,450 
34,480 

38,110 
28,140 


31,310 
33.430 


Nett 
Profit. 


Total 
Re- 
serves. 


23,070 
24,410 
62,670 

44,220 

21.580 

27.540 

12.270 

12,340 
5.870 
7,190 


15.910 
18,810 

5,980 

8,650 

7.010 
30.170 

32,110 
21,550 

19,640 
22,240 

21,510 
16.090 

13.810 

7,960 


315.000 
300,000 


114,000       9g 
127,000       §1 


Divi- 
dend. 


% 
124 

12i 

20 

II 


50.000 
50,000 
10,000 
10,000 


5.000 
5.000 


19.500 

27,200 
27,200 


20,000 
20.000 


8i 
13! 
i7i 


10 
10 


20 
20 

le 

7i 

2i 


20 

5 


Carrieif. 
For- 
ward. 

~r' 

8,320- 
7.850 
37.540^ 
23,080- 

15.560- 

I7.32»- 

1,000- 

1.250- 
6,390 
2.510 


960. 
1,000 
4.010 

3.380 

2,6oo< 

590 

26,260- 
ii.gio 

3.950- 
5,620 

7.090 
2,350 

5,280 
1,260 


NOTICE. 


THE  COMMERCIAL  BANK  OF  LONDON.  LTD. 

Authorised  Capital £1,000,000 

Issued  and  Paid-up  Capital...      £500,000 

CURRENT    ACCOUNTS    opened    and    every    description    of 

Banking  Business  transacted. 
Bills  discounted  and  advances  made  to  Customers  on  approved 

security. 
SPECIAL    FACILITIES     GRANTED     TO     COMMERCIAL 

AND  INDUSTRIAL  UNDERTAKINGS. 
The  purchase  and  sale  of  securities  undertaken,  safe  custody  of 

securities,  also  the  receipt  of  dividends.     Correspondence- 

invited. 
COUPONS  AND  DRAWN  BONDS  negotiated. 
DEPOSITS  received  at  call,  or  for  fixed  periods,  at  rates  which- 

may  be  ascertained  on  application. 
ABTHUB  a  KU4G  (General  Manager),       Austin  Friars,  London,  E.C.3> 


58:^ 


Zbc  Jnvestors'  IReview* 


June  15,  1918. 


PUBLIC     INCOME     AND    EXPENDITURE. 


The   following   are   the   receipts   into   and   issues   out 
Exchequer  between  April  1,  1918,  and  June  8,  1918: — 


of    the 


Balances   in    Exchequer   on 

April  I— Bank  of  EnglAOd  . 

Bank  of  Ireland    . 


Revenue. 

Customs  

Excise  

Estate,  &c.,  Duties 

Stamps 

Land  Tax 

House  Duty    

Property  and  Income  Tax  and 

Super  Tax    

Excess  Profits  Duties,  &c.. 

l.and  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    front    Sundry 

Loans,  &c 

Miscellaiieous 


Estimate 

for  the 

Year 

xgi8-i9i9. 


Total  Keceipta 

into  the 

Exchequerfrom 

April  I,  1918,  to 

June  8,  1918. 


£ 

19-361.378 
1,668,452 


31,030,030 


Revenue 
Total 


Other  Receipts. 

Repayment  of  Advances  for  Bullion   

For  Treasury  Bills  (tor  supply) 

For  5  per  Cent.  Exchequer  Bonds,  1922    

For  3  per  Cent.  Exchequer  Bonds,  1930    .... 

For  Wat  Savings  Certificates 

For  other  Debt  (War  Loan  Acts,  1914-1917)  .. 
For4  per  Cent.  War  Loan,  1929-1942,  and  5  per 

Cent.  War  Loan,  1929-1947    

For  National  War  Bonds    

Temporary  Advances— Ways  and  Means... 


Total . 


16,644,000 
7,697,000 
5,578,000 
1,577,000 

375.000 


22,914,000 

46,444,000 

91,000 

5,200,000 

1 10,000 

895 
3,118,616 


109,649.511 


130.679,541 


1,170,000 

802,432,000 

803,600 
17,600,000 
115.720,594 


*i43,036.ooo 
178,028,440 


1,389.470.175 


Total   Receipts 

into  the 

Exchequer  from 

April  I,  1917,  to 

Jane  9,  1917. 


€ 

35.209,947 
1,225,913 


a6.435.859 


13,626,000 

7,552,000 
6,223,000 

1,309,000 

290,000 


20,519,000 

31,315,000 

136,000 

5,100,000 

90,000 

9.453 

803,195 


86,972,648 


113,408,507 

510,000 
358,146,000 
37,051,000 

7,6'70,ooo 
108,862,879 

130,500,000 

i7i>6o5,ooo 


927,683,386 


♦Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account 


Expenditure 
and  other  issuss. 


Estimate  for 
the  Year 

1918-19. 


Total  Issues 
out  of    the   Ex- 
chequer to  meet 
payments    from 
April  I,  1918,  to 

June  8,  X918. 


Total  issues 
out   of   the   Ex- 
chequer to  meet 
payments    from 
April  I,  1917,  to 

June  9,  1917. 


Expenditure. 
■  Permanent  Charge  of  Debt  , , 
Interest,  &c.,  on  War  Debt .. 
Payments  to  Local  Taxation 

Accounts,  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    


Expenditure 


Other  Issues, 

For  Advances  for  Bullion 

For   Advances    for    Interest    on    Exchequer 

Bonds     under    the     Capital     Expenditure 

(Money)  Act,  1904    

■Under  Telegraph  (Money)  Act,  1913 

Under  Post  Ofijce  (London)  Railway  Act,  1913 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supply 

F"or  War  Loans,  Exchequer  Bonds,  &c., under 

Section  34  of  Finance  Act,  1917 

For  War  Expenditure  Certificates  under  War 

Loan  Act,  igi6    

For  other  Debt  under  the  War  Loan  Acts, 

191*4  to  1917 

For  Depreciation  Fund  under    the   Finance 

Act,  1917  

Old    Sinkmg    Fund,    1910-11,    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  <b)  .. 
Temporary  Advances  repaid — Ways  and  Means 


Balances  in  Exchequer- 
Bank  of  England 

Bank  of  Ireland 


X918. 
Junes, 

15,063.677 
786,016 


191 7. 

June  9. 

£ 

22,406,396 

1,040,800 


ToUl. 


£ 

3,278,855 

8c,  100,791 

460,760 

296,353 
483.414,900 


567,551,659 


84,909 

15,000 

12,000 

106,300 

1756,000,000 

7.796.155 

f  2, 576,600 

9.497.837 

4,460,022 

20,  coo 
24,000,000 


1.3731620,482 


15.849,693 


1.389.470,175 


£ 

4,104,606 

50,376,724 

460,760 

261,848 
462,112,300 


517,516,238 


760,000 


84,909 

20,000 

i75,4Co 
223,393,000 


159,000,000 


904,236,190 


23,447.196 


927,683,386 


Memo.— Treasury  Bills  outstanding  on  June  8, 1918 ♦£1,019,306,000 

♦  Includes  £292,000,  the  proceeds  of  which  were  not  carried  to  the  Exchequer 

within  the    period   of   the  account,  besides   a   part   (not   yet  ascertained  and 

brought  to  account)  of  the  Bills  tendered  as  subscriptions  to  National  War  Bonds. 
I  Includes  part  payment   of  Bills  and  Certificates  tendered  as  subscriptions 

•to  National  War  Bonds 


OILFIELDS     PRODUCTION. 


Lobitos  Oilfields,  Ltd. — 7,253  tons  for  Way. 
United    British   Oilfields   of  Trinidad,    Ltd.- 
week  ending  Wednesday,  May  29. 


1,429  tons    for 


Copies  of  THE  INVESTORS'   REVIEW  can 
be  obtained  in  Paris  at 

Messrs.  W.  H.  Smith  &  Son's, 
248,  Rue  de  Rivoli. 


Tea,  Oil  and   Rubber. 

For  the  first  time  that  we  can  recall,  the  arrivals  of  rubber 
reflect  seriously  the  restriction  of  imports.  They  amounted  last 
week  to  only  93  tons,  but  that  may  or  may  not  be  due  to  ships 
being  temporarily  held  back— we  shall  see  during  the  next  month 
or  so.  We  know  that  our  mails  from  the  East  come  in  batches, 
and  the  same  may  apply  to  rubber  shipments.  At  the  same  time 
deliveries  la.st  week  were  nearly  690  tons,  so  that  the  statistical 
position  is  a  trifle  better.  Hut  we  take  a  rather  impish  delight 
in  following  the  squirmings  of  the  experts  to  try  and  explain 
away,  or  cover  up,  their  previous  wild  enthusiasm.  And  deal- 
ing with  the  Highlands  disappointment,  one  of  them  recalls 
that  the  chairman  of  the  company  at  the  meeting  of  the  Anglo- 
Malay  said  :  "  Our  object  is  not  only  to  retain  sufficient  funds  to 
meet  all  expenditure  of  the  next  12  months,  but  to  carry  for- 
ward a  sum  that  will  enable  us  to  give  you  a  dividend  for  1918 
which  will  be  equal  to  or  not  far  short  of  that  you  will  have 
received  for  1917."  Well,  the  Highlands  pays  17^  per  cent., 
and  only  the  other  week  the  shares  were  quoted  round  55s.,  so 
that  the  yield  is  just  a  little  over  6  per  cent.,  and  if  it  is  to  be 
cut  down  further,  as  this  bullish  estimate  seems  to  contemplate, 
War  Bonds  would  give  at  least  as  high  a  return  with  infinitely 
less  risk.  It  is  necessary  to  insist  on  these  points  when  there  is 
an  active  propaganda  which  would  have  you  believe  that  a 
sovereign  is  worth  from  30s.  to  40s.  There  will  have  to  be  a 
great  change  in  this  ostrich  attitude  before  long,  or  the  pendulum 
of  prices  may  swing  so  far  in  the  opposite  direction  as  to  create 
trouble. 

A  Glasgow  correspondent  writes  :— "  I  have  been  deeply  in- 
terested, after  reading  3'our  article  on  rubber  in  this  week's 
Investors'  Review,  but  do  you  say  that  the  great  change  will 
take  place  before  or  after  the  end  of  the  war  ?  Will  the  Kubber 
market  not  wait  to  get  the  full  benefit  of  the  great  demand  that 
the  Central  Powers  are  sure  to  make  when  peace  comes?  " 

We  are  not  sure  that  we  catch  the  exact  point  our  corre- 
spondent wishes  to  get  at,  but  his  difficulty  appears  to  be  in 
regard  to  "  the  great  demand  that  the  Central  Powers  are 
sure  to  make  when  peace  comes,"  and  it  may  be  useful  to 
elaborate  a  little  the  argument  we  put  forward  last  week.  We 
have  no  doubt  at  all  that  the  Central  Powers  will  want  a  great 
deal  of  rubber  and  many  other  raw  materials,  but  is  it  at  all 
probable  that  they  will  be  able  to  obtain  them  for  quite  a  long 
time?  A  little  retail  dribble  may  filter  through  Holland  and 
other  neutral  countries,  but  there  are  strong  reasons  for  believ- 
ing that  it  cannot  amount  to  much  more  than  that,  whatever 
the  terms  of  peace  may  be.  What  ports  are  German  ships  to 
call  at,  and  where  are  they  to  get  coal  after  the  infamous 
piracy  to  which  they  have  subjected  not  only  belligerent,  but 
neutral  vessels  ?  And  how  are  German  traders  to  pay  for  the 
goods  they  want?  It  is  dangerous  to  prophesy,  but  if  the 
mark  is  worth  more  than  2d.  in  neutral  markets  after  the  war,  we 
shall  be  greatly  surprised.  How  can  anything  like  a  large  business 
be  transacted  on  these  terms,  even  if  there  were  sufficient  people 
willing  or  anxious  to  enter  into  it?  We  may  be  altogether 
mistaken,  but  to  us  it  is  inconceivable  that  the  Hun  beasts  will 
have  either  the  power  or  the  opportunity  to  trade  after  the 
war,  for  a  generation  or  more,  just  as  though  nothing  had 
happened  !  And  we  feel  quite  certain  that  people  who  are 
basing  calculations  as  to  future  prices  on  the  "  great  demands" 
of  the  Central  Powers  will  find  themselves  bitterly  disappointed. 
Diplomats  may  make  what  arrangements  they  like,  but 
humanity  revolts  against  the  idea  of  treating  the  Huns  as 
civilised  beings  until  they  have  purged  their  offences  by  long 
and  bitter  travail.  As  to  the  probable  course  of  rubber,  we 
think  the  price  is  more  likely  to  fall  than  to  rise  after  peace  is 
accomplished.  It  is  a  point  on  which  it  would  be  foolish  to 
dogmatise,  as  relatively  small  developments  might  tip  the  scale 
in  either  direction,  but  if  it  has  proved  impossible  to  maintain 
the  price  in  face  of  enormous  war  demands  and  war  wastage, 
the  chances  that  peace  will  redress  the  balance  are  very  remote. 

Highlands  and  Lowlands  Para  Rubbes  Co.,  Ltd. — Year  to 

December  31  :  Capital,  ;^3o9,48o  in  ;^i  shares;  reserve,  ;f 75,000. 
Something  like  consternation  was  created  by  the  issue  of  the 
report  and  the  passing  of  the  final  dividend.  Two  interim 
dividends,  amounting  to  17J  per  cent.,  have  been  paid,  against 
38  per  cent,  for  1916,  and  the  only  consolation  the  shareholders 
have  is  that  the  carry  forward  is  increased  by  ;f33,5oo  to 
;f45,ioo;  but  their  tempers  are  not  likely  to  be  improved  by 
the  fact  that  there  was  a  sharp  fall  in  the  price  of  the  shares 
before  the  report  got  into  their  hands.  Output  amounted  to 
1,428,340  lbs.,  an  increase  of  78,000  lbs.;  gross  price,  2s.  4.o7d., 
against  2S.  7.85d.  ;  all-in  cost,  ii.75d.,  against   is.;   nett  profit. 


June  15,  1918. 


Ubc  investors'  IReview. 


583 


j^ioi,6oo;  Increase,  ;^4,5oo.  The  area  in  bearing  shows  an 
increase  of  150  acres  at  3,566  acres  out  of  a  total  planted  area 
of  4,500  acres,  and  there  are  3,770  acres  in  reserve.  Average 
yield  ranged  from  294  lbs.  per  acre  on  the  Highlands  division 
to  4S3  lbs.  on  {He  Midlands  division,  but  no  details  are  given 
as  to  the  age  of  the  trees.  For  the  current  year  the  output  is 
estimated  at  1,143,000  lbs.  The  report  is  the  bitterest  dis- 
appointment the  market  has  had  to  face  for  a  long  time. 


DIVIDENDS    ANNOUNCED. 


Associated  Tea  Estates  of  Ceylon. — On  preference  shares  for 
half-year  ending  June  30  at  rate  of  6  per  cent-.,  to  be  paid  on 
June  29,  le.ss  tax  at  5s.  6d.  in  the  £. 

British  Malay  Rubber. — 10  per  cent.,  les.s  tax,  for  1917,  same 
as  for   1916. 

Commercial  Bank  o£  London. — Interim  on  deferred  shares  of 
7.98d.  per  share,  and  on  preference  shares  at  7  per  cent,  for 
tjuarter  ending  June  30. 

Champion  Reef  Gold  Mining  Co.  of  India. — Interim  on  ac- 
.  count  of  year  to  Sept.  30,  1918,  of  4d.  per  share  (less  tax). 

Claudius  Ash,  Sons  and  Co. — At  rate  of  c%  per  cent,  per 
annum  on  preference  shares  for  six_  months  ending  June  30,  pay- 
able on  July  I. 

Chino  Copper. — $1,  payable  June  29,  against  82.50  a  year  ago. 

Kast  Pool  and  Agar. — Interim  is.  3d.  per  share,  less  tax,  pay- 
able on  July   I. 

Ex-Lands  Nigeria. — Final  7J4  per  cent,  for  1917,  also  a  y'/i 
per  cent,  interim  for  igi8,  making  a  total  of  15  per  cent.,  free 
of  tax,  to  be  paid  about  end  of  July.  Dividend  for  1917  is  20 
per  cent.,  against  10  per  cent,  for  1916. 

Frontino  and  Bolivia  (South  American)  Gold  Mining  Co. — 
Interim  on  ordinary  shares  of  2^'^  per  cent.,  payable  on  July  1, 
less  tax. 

Howard  and  Bullough. — Final  quarterly  2%  per  cent,  (actual) 
and  bonus  of  5  per  cent.,  making  15  per  cent,  for  year.  To  re- 
serve fund  ;£73,648  ;  to  dividend  reserve  ^^30,000;  and  to  con- 
tingency shrinkage  reserve  ;^8,ooo,  carrying  forward  ^^91,081. 
Total  la.st  year  was  10  per  cent. 

Hyderabad  Deccan  Co. — Interim  is.  per  share,  less  tax,  to  be 
paid  on  June  24. 

Imperial  Tobacco  Co.  of  Canada. — Interim  (No.  28)  oi  1%  per 
■cent,  on  ordinary  shares,  payable  on  June  27.  Same  as  a  year 
ago. 

John  Brown  and  Co. — Final  7^  per  cent.,  making  I2j4  per 
cent,  for  year,  less  tax. 

Land  and  Mortgage  Co.  of  Egypt. — 5  per  cent.,  less  tax,  for 
year  ended  March  31,  the  same. 

Lobitos  Oilfields.— 5  per  cent.,  less  tax,  for  1917,  y7iOi°°o 
to  reserve;  forward,  ^^34,708.  10  per  cent,  for  1916,  with 
jCt}j,ooo  to  reserve  and  ^35,062  forward. 

London  and  Lancashire  Life  and  General  Assurance  Associa- 
tion.— Dividend  and  bonus  for  half-year  ending  June  30,  at 
rate  of  is.  6d.  per  share,  less  tax,  payable  on  July  i,  equal 
to  15  per  cent,  on  paid-ujj  capital,  same  as  a  year  ago. 

Manila  Electric  Railroad  and  Lighting  Corporation. — 1%  per 
cent.  ($1.50  per  share)  for  quarter  ending  June  30  on  common 
capital  stock,  payable  in  New  York  on  July  i,  same  as  a  year 
ago. 

Maturata  Tea  and  Rubber  Co.— Interim  of  5  per  cent,  on  ac- 
count of  year  ending  June  30,  payable  on  June  14. 

Nagolle  (Ceylon)  Rubber  and  Tea  Plantations. — Final  for  1917 
of  5  per  cent.,  less  tax,  making  10  per  cent,  for  year,  against  14 
per  cent. 

National  Trust  (Toronto). — Quarterly  at  rate  of  10  per  cent, 
per  annum,  same  as  a  year  ago. 

Oriental  Rubber. — Final  for  1917  of  15  per  cent.,  less  tax, 
making  20  per  cent.,  against  30  per  cent. 

Nevada  Consolidated  Copper. — 75  cents,  payable  June  29. 

Orchestrelle  Co. — At  rate  of  6  per  cent.,  per  annum,  less  tax, 
•on  preference  shares,  for  six  months  to  June  30,  payable  on 
July  I. 

Ray  Consolidated  Copper. — 75  cents,  payable  June  29. 

Rio  Claro  Railway  and  Investment  Co. — Interim  2  per  cent., 
payable  on  June  24,  same  as  a  year  ago. 

RhymneyTron. — 5  per  cent,  (actual)  on  ordinary. 

Royal  Brewery,  Brentford. — On  preference  shares  at  rate  of 
6  per  cent,   per  annum  for  half-year  ending  June  30. 

Sea  Insurance  Co. — Interim  los.  per  share,  subject  to  tax  at 
5s.  gd.  in  the  £,  payable  on  July  i,  same  as  a  year  ago. 

Shawinigan  Water  and  Power  Co. — 8i|,  or  at  rate  of  7  per 
<ent.  per  annum,  for  quarter  ending  June  30,  payable  July  10, 
same  as  a  year  ago. 

Shamva  Mines. — Interim  is.  per  share,  less  tax  at  6s.  6d.  in 
the  pound,  for  current  quarter,  being  second  interim  for  year 
■^o  December   31,    1918,   payable   on   July  9.       Coupon    No.    14 


attached  to  share  warrants  to  bearer  will  be  paid  at  London 
Joint  Stock  Bank,  5,  Princes  Street,  E.C.  2.   . 

Sulphide  Corporation. — Interim  10  per  cent,  on  preference 
and  ordinary  shares  for  year  ending  June  30,  payable  on  July 
25,  the  same. 

Taquah  Mining  and  Exploration  Co. — Further  (No.  14)  for 
current  year  of  is.  6d.  per  share,  less  tax  at  rate  of  53.  3d.  in 
the  jC>  payable  on  June  29. 

Telogoredjo  United  Plantations. — Final  5  per  cent.,  less  tax, 
making  10  per  cent,  for  191 7,  against  175  per  cent,  for  1916. 

Tomboy  Gold  Mines. — 6d.  per  share,  free  of  tax,  against  is. 
per  share  a  year  ago. 

Utah  Copper. — $2.50,  payable  on  June  29,  against  $3.50  a  year 
ago. 

Van  Ryn  Gold  Mines  Estate. — 5  per  cent.  (is.  per  share),  less 
tax,  at  4s.  in  the  £,  making  total  of  175  per  cent.  (3s.  6d.  per 
share)  for  year  ending  June  30,  against  35  per  cent. 

Wankie  Colliery. — Interim  5  per  cent.,  less  tax,  on  account  of 
year  ending  August  31  next. 


Answers  to  Coprespondents. 


*,*  A  Hoy  to  theso  Anawors  will  bo  poatod  oarly 
each  M^eeilr  for  a  aubaerlption  of  ONE 
GUINEA  por  annum,  11a,  for  aix  montha,  or 
6a.  9 ft.  tor  throo  montha. 

Doposlta  against  future  tjuerloa  may  bo  lodgod 
with  tho  Publisher. 

A.  H. — (i)  Not  just  yet,  unless  you  can  get  them  very  cheap. 
It  will  be  a  long  wait.  (2)  With  good  concerns  the  fall  looks 
like  being  at  an  end.  We  think  you  should  hold  on.  (3)  Fairly 
.so.  There  will  not  be  much  recovery  just  yet.  Generally  speak- 
ing, the  largest  are  the  best.  (4)  Leave  alone.  (5)  Might  have 
a  chance  here  if  you  can  buy  cheap.  (6)  Here  also.  (7)  Great 
possibilities  here  if  the  war  goes  right  soon.  (8  and  9)  These 
hang  together,  and  promise  much  in  the  distant  future,  but  we 
see  nothing  to  go  for  just  now.  Nos.  5,  6  and  7  are  the  most 
promising.  (10)  The  capital  is  mostly  represented  by  goodwill. 
Not  worth  buying. 

XXX. — A  correspondent  asks  whether  we  publish  the  numbers 
of  bonds  drawn  in  Continental  premium  loans.  We  do  not, 
and  would  probably  be  fined  or  sent  to  gaol  if  we  did,  such  is 
the  excellence  of  our  I-am-holier-than-thou  perfection.  Apply 
to  Davies  and  Co.,  23,  Finch  Lane,  E.C.  3. 

A.  B.  C. — (i)  Doing  remarkiaT>ly  well.  Interest  safe.  Worth 
averaging  as  an  investment  to  hold,  but  do  not  expect  any 
appreciable  rise.  (2)  Interest  practically  assured,  but  should 
not  average  at  present  price.  (3)  Well  secured,  but  not  likely 
to  rise  just  now.  Might  bfe  worth  while  averaging  if  you  can 
buy  to  reduce  total  cost  to  well  under  90.  (4)  In  some  ways 
this  is  the  weakest  of  your  list,  but  there  are  prospects  in 
the  future.  Do  not  buy  at  present,  but  wait  until  the  position 
is  a  little  clearer. 

East  Sussex. — Owns  some  good  investments,  and  should  be 
able  to  pay  fair  dividend.  See  no  reason  to  sell,  unless  you 
find  something  more  attractive.  No  doubt  you  have  converted 
your  shares  into  the  new  stock. 

Undaunted. — It  is  in  many  ways  the  most  attractive  as  a 
speculative   investment.     The  advice  is  worth    following. 

T.  B.  A. — (i)  Yes,  if  you  can  buy  it  reasonably.  (2)  Yes,  if 
you  are  prepared  to  wait.  Profits  not  brilliant,  but  company 
owns  a  lot  of  v'STuable  property. 

H.  G.  U. — Prospects  of  any  rapid  advance  look  remote.  If 
you  are  prepared  to  go  without  dividends,  and  to  wait,  the 
stock  should  in  time  appreciate  if  company  treated  well.  At 
present  the  position  is  rather  hypothetical. 

Nones. — We  are  inclined  to  agree  with  you.  There  is  much 
to  be  done,  espefially  to  the  railways,  but  the  outlook  certainly 
is  more  promising.  You  might  buy  a  little  more  if  you  can  do 
so  reasonably. 

C.  E.  M. — (i)  For  the  present  they  are  high  enough,  but  the 
company  is  powerful,  and  has  prospects.  Still,  it  would  be 
prudent  to  sell  some  of  your  holding  and  so  reduce  cost  of 
balance.  (2)  These  might  be  kept  a  little  longer,  as  the  business 
is  very  prosperous,  and  the  price  likely  to  go  higher.  If  so, 
follow  the  same  plan  and  watch. 


Russian  Government  and  Municipal 
Securities. 

The  Council  of  Foreign  Bondholders  give  notice  that  a 
general  meeting  of  holders  of  Russian  Government  and  Munici- 
pal Securities  is  to  be  held  at  Winchester  House  (Great  Hall), 
Old  Broad  Street,  London,  E.C,  on  Thursday,  the  20th  inst., 
at  3.15  p.m.,  for  the  purpose  of  taking  such  action  by  the 
appointment  of  a  committee  or  otherwise  as  may  be  deemed 
desirable  for  the  protection  of  the  bondholders'  interests.  It 
is  very  necessary  that  some  action  of  this  sort  should  be  taken, 
as  it  is  obviously  most  undesirable  that  the  Government  should 
intervene  officially  in  the  present  stage  of  affairs. 


584 


Cbe  Jnveators   iRevievp. 


June  15,  1918- 


Italy  :    Demobilisation   Suggei&tions, 
Tariffs,   &c. 

The  much-discussed  problem  of  demobilisation  has  been  of 
late  very  sensibly  set  forth,  together  with  some  possible  solu- 
tions, by  the  general  secretary  of  the  Labour  Federation,  J<. 
Kigola.  This  careful  report  proves  how  similar  can  be  the 
conclusions  arrived  at  by  different  parties,  provided  they  are 
unbiassed  by  sectarian  prejudices.  Though  elaborated  by  a 
representatiiJe  of  Socialism,  there  is  nothing  in  it  which  a 
Conservative  could   not  agree  to. 

At  the  end  oi  the  war  3,000,000  men  now  under  the  colours 
will  come  back  to  find  the  economy  of  labour  and  production 
wholly  changed,  their  former  places  filled  by  as  many  men  or 
women.  While  the  demand  for  labour  at  home  and  abroad 
will  verify  itself  only  gradually,  the  cost  of  living  will  be  still 
very  high,  and  it  is  most  necessary  to  do  everything  in  our 
power  to  facilitate  employment.  The  above-mentioned  report 
suggests  the  following  measures  : — 

(a)  Subsidies  to  the  soldiers'  families  must  be  continued  lor 
two  months  after  demobilisation. 

(b)  To  form  local  committees  to  assist  the  men  and  find  them 
employment. 

(c)  To  arrange  for  three  months  a  daily  allowance  to  those 
workmen   still  unable   to  find   suitable   occupation. 

(d)  To  reduce  debts  of  rent,  transferring  them  to  the  State 
as  war  debts,  and  lastly,  to  promote  public  works,  notwith- 
standing the  expen.se. 

All  this  should  be  done  for  the  space  of  six  months,  with 
the  special  aim  of  restoring  to  vitality  and  efficiency  the 
energies  of  the  various  industries,  and  of  the  men  who  will 
resume  their   work  after  a  lapse  of  some  years. 

Our  Protectionist  papers  have  welcomed  with  keen  satisfac- 
tion the  abolition  of  "  the  most  favoured  nation "  clause  in 
Kngland,  and  they  already  anticipate  the  definite  triumph  of 
their  ideal  over  Free  Trade.  In  answer  to  one  of  these  articles. 
On.  Giretti,  orie  of  the  strongest  supporters  of  Free  Trade  in 
Italy,  sets  forth  some  objections  in  the  Economista. 

The  big  industrial  firms  are  actively  working,  so  that  an 
autonomous  tariff  may  be  adopted,  and  for  the  exclusion  of  the 
"most    favoured    nation"    clause.     They    have  constituted    the 

National  Committee  for  Custom  l:)uties  and  Commercial 
Treaties."  One  thing  is  certain,  that  should  their  influence 
prevail,  their  chief  preoccupation  will  be  to  shut  out  all  foreign 
manufactures  that  could  be  had  at  a  lower  price  than  the 
one  they  may  choose  to  set  on  their  own  goods.  To  this  group 
belong  the  siderurgical  industrials,  who,  though  realising 
enormous  profits  during  the  war,  are  yet  far  from  having  re- 
solved the  chief  problem  confronting  those  industries  whose 
very  existence  depends  on  low  prices.  This  has  been  partly 
the  fault  of  their  unique  customer,  the  State,  from  whom  they 
have  obtained  exceptional  conditions,  also  in  regard  to  war 
profits  taxes,  being  in  this  way  encouraged  to  waste  and  ex- 
travagance. It  would  be  foolish  to  believe  that  those  same  manu- 
facturers would  be  inclined  to  discriminate  between  enemies 
and  allies,  though  one  of  their  favourite  arguments  has  been 
the  patriotic  wish  to  make  Italy  independent  of  Germany  But 
when  It  comes  to  the  point,  every  competitor  is  considered  an 
enemy. 

On.  Giretti  lays  stress  on  the  necessity  that  the  people  should 
know  what  would  follow  should  this  Protectionist  campaign 
succeed  in  its  aim.  It  is  only  too  obvious  that  were  we  to 
close  our  frontiers  to  imports  of  those  manufactured  goods 
which  are  needed  by  the  Italian  consumer,  there  would  be 
apart  from  any  eventual  reprisal,  a  decrease  in  our  agricul- 
tural exports,  for  the  simple  reason  that  the  natural  means 
of  exchange  has  failed.  By  the  exclusion  of  the  "  most  favoured 
nation  clause,  we  would  find  ourselves  after  the  war  cut  off 
.  from  the  world's  trade,  deprived  of  all  reliable  guarantees  and 
exposed  to  a  dangerous  competition  on   foreign  markets. 

I  report  to  you  the  above,  being  aware  of  the  interest  your 
paper  has  ever  shown  in  the  question,  and  also  because  I  think 
it  would  be  well  that  Free  Traders  in  all  countries  should  keep 
m  touch  with  each  other,  and  evenfually  link  up  for  mutual 
support.— FroOT  an  Italian  Corresfondent. 


What    Balance   Sheets  Tell. 

Ebbw  Vale  Steel,  Iron  and  Coal  Co.,  Ltd.— The  directors 
are  not  in  a  position  to  present  accounts  for  the  year  to 
March  31,  owing  to  difficulties  in  settling  the  amount  of  war 
taxation,  but  they  are  satisfied  that  the  profits  justify  the  pay- 
ment of  an  interim  dividend  at  the  rate  of  15  per  cent,  per 
annum,  and  they  do  not  recommend  any  further  distribution  in 
respect  of  the  past  year.  Treasury  sanction  has  at  length 
been  obUined  to  issue  ^^600,000  in  6  per  cent,  debentures. 
^too,ooo  in  7  per  cent,  preference  shares,  and  ^600,000  in 
ordinary  shares.  In  order  to  facilitate  this  operation,  it  is 
proposed  to  convert  the  existing  5  per  cent,  debentures  into  6 
per  cents.,  and  the  existing  6  per  cent,  preference  shares  of 
^5  each  m  7  per  cent,  preference  shares  of  /i  each.  The  de- 
beritures  will  be  offered  at  95,  the  preference  shares  at  par, 
and  the  ordinary  at  5s.  premium,  and  the  total  capital  will 
then  amount  to  ^^4,150,000.     It  is  an  amhitious  programme  for 


these   times,    but  the  extension  of   the   works   is   urgently    re- 
quired, and  HoAbtless  the  money  will  be  readily  forthcoming. 

Bbunneb,  Mond,  and  Co.,  Ltd. — As  indicated  by  the  divi 
dend  announcement,  the  results  for  the  year  to  March  31  show 
a  slight  improvement  over  those  of  the  previous  12  iiKinths. 
Gross  profits  were  j^io,ooo  higher  at  ;£i, 265,000,  but  chargei- 
were  heavier,  and  the  nett  profit  is  .if 5,000  down  at  /^i, 112,000. 
However,  ^'93,000  more  was  brought  in,  and,  after  transferring 
^'250,000  to  reserve,  against  ;f  100,000  placed  to  suspense  last 
year,  a  final  dividend  of  6  per  cent,  is  declared,  leaving 
;f 95,000  less  at  ;^iig,ooo  to  be  carried  forward.  The  final 
dividend  is  equivalent  to  15  per  cent,  on  the  old  capital,  so 
that  the  shareholders  are  getting  the  same  amount  as  for 
many  years  past,  only  it  is  spread  over  a  larger  number  of 
shares.  The  issued  ordinary  capital  is  now  ;f  7,745,000,  against 
^.'3,098,000,  and  this  has  involved  the  disappearance  of  most 
of  the  reserve  (which,  however,  will  be  raised  to  nearly 
J^'4oo,ooo  by  the  present  addition),  while  general  investments 
now  stand  at  /4,582,ooo,  against  ;^i, 511,000,  owing  largely  to 
the  value  being  written  up.  The  other  changes  in  the  balance- 
sheet  are  not  of  much  significance,  but  the  total  is  now 
;f 3, 200,000  higher  at  ^11,688,000,  and  the  business  prospers 
amazingl/. 

Anglo-Ahgentine  Tramways  Co.,  Ltd. — In  1917  the  gross 
receipts  were  ;^2,783,ooo,  an  increase  of  ;^69,ooo,  but  expenses^ 
rose  ;fQ5,ooo  to  ^^2,052,000.  Nett  receipts  were  consequently 
^26,000  lower  at  ;C73i,ooo,  and  a  little  less  was  received  for 
interest,  while  the  amount  brought  in  was  ^^43,000  smaller,  with 
the  result  that  the  available  balance  of  2^821,000  is  £;j\,ooc 
down.  After  meeting  fixed  charges  only  one  half-year's  divi- 
dend can  Be  paid  on  the  first  preference  shares,  which  got 
their  full  5J  per  cent,  lor  1916,  and  the  amount  carried  for- 
ward is  increased  by  £iy,ooo  to  ;f 68,000.  Second  preference 
shares,  amounting  to  ^^2, 500,000,  and  ordinary,  amounting  to 
^3,250,000,  get  nothing  at  all.  It  must  be  admitted,  however, 
that  the  conditions  have  been  very  difficult.  No  fewer  than 
324  million  passengers  were  carried,  an  increase  of  5,810,000, 
but  the  cost  of  fuel  alone  was  ^274,000  higher  than  it  would 
have  been  on  the  pre-war  basis,  and  rigid  economy  must  have 
been  practised  in  other  directions  for  the  results  to  be  as 
good  as  they  are.  Business  prospects,  the  general  manager 
reports,  are  excellent,  but  it  is  feared  that  the  cost  of  current 
will  be  higher  than  ever  this  year,  so  that  the  shareholders 
must  still  exercise  patience. 

Albert  Baker  and  Co.  (1898),  Ltd. — A  very  welcome  re- 
covery is  recorded  in  the  report  of  this  company  for  the  year 
to  March  31,  and,  indeed,  the  results  are  the  best  obtained 
in  its  history.  Trading  profits  amounted  to  /io7,6oo,  an  in- 
crease of  ;f4i,ooo,  and  the  nett  profit  is  ;£35,ooo  up  at  >f 50,430. 
The  directors  prudently  deal  with  this  amount  in  a  very  con- 
servative fashion.  They  propose  a  dividend  of  7^  per  cent., 
which  will  absorb  ;f  15,000,  and  a  similar  sum  is  placed  to 
reserve,  with  a  view  to  the  ultimate  cancellation  of  goodwill  and 
suspense  account,  which  together  amount  to  ;f  100,000.  There 
then  remains  ;f2o,ooo  more  at  £2^,y^o  to  be  carried  forward, 
subject  to  excess  profits  duty.  When  it  is  recalled  that  only 
two  years  ago  there  was  a  debit  balance  of  nearly  ;f  10,000,  the 
progress  made  by  the  company  has  been  remarkable,  and  we 
have  no  dubt  it  is  largely  due  to  the  change  in  management, 
but  the  directors  modestly  refrain  from  claiming  any  credit, 
and  point  out  that  the  conditions  have  been  and  still  are 
abnormal. 

South  Australian  Co. — No  settlement  has  yet  been  reached 
with  the  Government  in  connection  with  the  taking  over  of  the 
company's  wharves,  and  the  company  has  not,  therefore,  had 
the  benefit  of  wharf  receipts  (;^34,27o  in  igi6),  nor  has 
it  received  either  interest  or  purchase  money.  In  these  circum- 
stances, the  directors  have  appropriated  ;f35,36o  from  the 
reserve,  in  order  to  pay  the  final  dividend  and  bonus  of  50s., 
tax  free,  making  70s.  for  the  year,  against  80s.  last  time.  Lands 
and  buildings  now  stand  in  the  balance-sheet  at  ;f  308,000,  against 
;^674,ooo,  owing  to  the  elimination  of  the  wharves  and  a  por- 
tion of  the  port  lands.  The  capital  is  only  ^^56,800  in  £4 
shares,  and  the  company  has  been  extraordinarily  successful 
and  prosperous,  but  that  is  no  reason  why  it  should  not  be 
fairly  treated. 

United  River  Plate  Telephone  Co.,  Ltd.— Last  year  this' 
successful  enterprise  again  made  substantial  progress,  the  gross 
receipts  being  ^^^793,000,  an  increase  of  ;^84,ooo,  which  follows 
a  gain  of  ;f  68,000  in  1916.  Expenses  amounted  to  ;f  528,000,  an 
increase  of  ;£5i,ooo,  leaving  a  nett  profit  of  ;^265,ooo,  or  £33,000 
more.  No  change,  however,  is  made  in  the  dividend,  which 
remains  at  ^  per  cent.,  tax  free,  but  reserves  get  ;f  100,000,  or 
;f  24,000  more,  and  the  carry  forward  is  increased  by  ;f  10,000 
to  ;^i7.3oo- 

Land  and  Mortgage  Co.  of  Egyft,  Ltd. — Gross  earnings 
for  the  year  to  March  31  amounted  to  ;f 28,440,  a  decrease  of 
;£7,ooo,  but  a  similar  amount  was  saved  on  interest  and  other 
charges,  so  that  the  nett  profit  is  practically  the  same  at 
/■7,4oo.  This  allows  of  the  payment  of  5  per  cent,  being  re- 
peated, and  the  carry  forward  is  a  few  pounds  smaller  at 
;f  1 1,170.  Loans  on  mortgage  have  been  reduced  by  ^77,000; 
otherwise  the  changes  in  the  balance-sheet  are  unimportant. 


The  Standard  Bank  of  South  Africa,  Ltd.,  announce  that  a 
branch  was  opened  at  Lusaka,  Northern  Rhodesia,  on  the  4th 
instant. 


Ui\E    1 


01 


19x8. 


ttbc  Jnvestots*  TReviet^* 


585 


COMPANY  MEETINGS. 

THE  FELLOWS  MAGNETO  CO. 

RAPID  DEVELOPMENT  OF  A  BRITISH  IHDU8TRY. 

The  first  annual  general  meeting  of  the  Fellows  Magneto  Co., 
Ltd.,  was  held  at  Winchester  House,  Old  Broad  Street,  E.C., 
on  Wednesday,  the  12th  instant,  at  2.30  p.m.  Mr.  V.  L. 
Fellows  (chairman  of  the  company)  presided. 

After  the  usual  preliminaries  the  Chairman  said  ;  The  im- 
portance of  the  magneto  industry  to  this  country  may  be  gauged 
from  the  report  of  Lord  BaMour  of  Burleigh's  Committee  recom- 
mending an  ample  measure  of  protection  in  the  future  for 
British  manufacturers  of  magnetos.  To  further  encourage  the 
investment  of  capital  in  this  key  industry  an  award  was  also 
made  by  the  official  referees  in  February,  entitling  us,  in  com- 
mon with  others,  to  an  increased  standard  rate  of  profit  under 
the  excess  profits  tax  during  the  continuance  of  the  war.  These 
reconmiendations  are  unquestionably  of  great  interest  to  us,  and 
nnist  have  an  important  bearing  on  the  present  and  future  pro- 
spects of  our  company. 

DIFFICULTIES  OF  LABOUR  AND  MATERIALS. 

The  past  year  has  been  one  of  unusual  difficulty,  due  to  war- 
time delays,  the  shortage  of  skilled  labour,  and  the  general  dis- 
organisation of  industry.  The  accounts  now  presented  to  you 
cover  a  period  of  18  months,  but  the  company  has  only  had  the 
benefit  of  the  preferred  capital  since  the  beginning  of  1917. 
The  magneto  output  was  commenced  in  April,  1917,  it  having 
been  found  necessary  to  greatly  extend  our  present  factory, 
which  was  purchased  by  us  in  1916,  together  with  ai  acres  ot 
freehold  land.  In  view  of  the  rapid  development  of  our  busi- 
ness, negotiations  are  now  in  progres  with  the  authorities  to 
enable  U8  to  again  double  our  present  factory  accommodation. 
Meantime,  a  furtEer  1%  acres  of  land  has  been  purchased, 
which  will  give  us  4  acres  in  all  for  our  premises. 

The  magnetos  we  are  now  manufacturing  are  .supplied  to  the 
aeroplane  services.  This  type  is  of  a  much  higher  standard  of 
quality  than  any  pre-war  Bosch  design,  and  is  built  to  the  limits 
of  extreme  accuracy  required  by  the  Government.  A  consider- 
ably increased  contract  is  now  being  placed  by  the  Government 
with  our  company. 

As  regards  the  balance-sheet,  Government  loans  amounted  to 
;{,"i7,45o,  against  which  there  is  ^^12,279,  due  to  us  mostly  for 
deliveries  to  the  Goverimient.  A  total  sum  of  ^^4.360  has  been 
written  off — a  substantial  sum  for  a  company  of  our  moderate 
capital  to  set  aside  in  its  first  year  out  of  what  is  practically 
equivalent  to  nine  months'  working. 

OIVIDEHDS  FOR  THE  FIRST  YEAR. 

Your  directors  recoumiend  the  payment  of  a  final  dividend  of 
5Ji  per  cent,  on  the  preferred  shares,  making  9^  per  cent,  to 
December  31,  1917,  and  a  dividend  of  15  per  cent,  on  the  ordi- 
nary shares,  leaving  a  balance  to  be  carried  forward  of  ;^i,i8i. 
Your  directors,  although  holding  the  greater  proportion  of  the 
ordinary  capital,  considered  it  advisable  to  write  down  in  a  .sub- 
stantial manner  the  preliminary  expenses  and  the  plant  and 
machinery,  rather  than  to  distribute  a  higher  dividend  in  this 
the  first  year  of  the  company's  working. 

In  this  connection  it  may  be  noted  that  an  increase  in  the  pre 
ferred  dividend  of  ^  P^r  cent,  means  an  increase  of  5  per  cent, 
in  the  dividends  on  the  ordinary  capital. 

PROPOSED  NEW  ISSUE  OF  CAPITAL. 

The  paid-up  capital  of  the  company  is  ;i'66,533.  This,  com- 
pared with  the  present  size  of  the  company's  undertakings,  is 
insufficient  for  our  requirements.  The  proposed  new  extensions 
of  our  factory  alone,  with  the  necessary  machinery,  are  esti- 
mated to  require  a  further  sum  of  ,^40,000,  to  which  has  to  be 
added  the  additional  working  capital  and  the  moneys  required 
for  the  repayment  of  our  Government  loans.  The  small  balance 
of  our  present  capital  now  available  for  issue  has  been  ofiered 
to  our  shareholders,  and  has  been  applied  for,  but  we  shall  also 
welcome  applications  from  members  of  the  public  who  may  wish 
to  take  an  interest  in  the  company  by  the  purchase  of  a  few  of 
the  ordinary  shares  which  may  be  available.  Provision  will 
also  be  made  to  reserve  for  such  applicants  a  participation  in 
our  forthcoming  issue.     All  inquiries  in  connection  with  these 


matters  should  be  ad^i'^^sed  to  our  Wes*-End  offices,  21,  St. 
James'.s  Street,  London,  S.W.  i. 

We  have  received  in  the  past  a  large  measure  of  ^nancial 
support  from  the  Government,  but  the  time  has  now  arrived 
in  which  we  should  carry  on  by  our  own  efforts,  as  far  as  pos- 
sible,  the  rapidly  increasing  business  we  have  built  up. 

The  report  and  accounts  having  been  approved  and  adopted, 
the  meeting  closed  with  a  vote  of  thanks  to  the  chairman. 


PHCENIX    ASSURANCE    CO. 

The  annual  general  meeting  of  the  shareholders  of  the  Phoenix 
Assurance  Co.,  Ltd.,  was  held  on  Wednesday  at  Phoenix 
House,  King  William  Street,  the  Kight  Hon.  Lord  George 
Hamilton,  I'.C,   G.C.S.I.    (the  chairman),  presiding. 

The  General  Manager  (Sir  Gerald  II.  Kyan)  read  the  notice 
convening  the  meeting  and  the  auditors'  report. 

The  Chairman  said  :  Let  me  first  say  that  from  the  results 
produced  by  insurance  companies  as  a  whole  I  draw  the  con- 
clusion that  this  important  branch  of  commercial  affairs  has 
well  maintained  its  position  under  the  trying  conditions 
brought  about  by  the  colossal  struggle  in  which  we  have  been 
engaged  for  nearly  four  years.  Though  here  and  there,  owing 
to  a  great  calamity  like  the  Salonika  fire,  some  of  the  leading 
offices  have  encountered  misfortune  in  their  fire  business  and 
shown  results  below  their  normal  standard  of  success,  taken  as 
a  whole  the  fire  companies,  ourselves  happily  included  in  t'i>- 
number,  have  done  fully  as  well  as  usu.,1.  Marine  companic:. 
have  done  remarkably  well,  and  the  life  offices  h;ne  siunvn,  as 
a  class,  great  vitality,  though  the  financial  effect  of  war  con- 
ditions has  temporarily  influenced  their  profits.  The  acci- 
dent branches,  of  which  we  are  at  present  not  a  very  imposing 
unit,  have  also  prospered.  It  seems  to  follow  from  this  brief 
survey  that  the  business  of  insurance  has  been  soundly  estab- 
lished, well  watched,  and  well  guided,  and  can  face  the  serious 
complications  of  these  anxious  times  without  misgivings.  This 
is  a  high  tribute  to  the  skill  and  judgment  of  those  responsible 
for  the  conduct  of  the  insurance  business  of  the  country.  Pass- 
ing briefly  in  review  the  working  of  the  several  branches,  the 
main  features  of  the  fire  business  in  the  past  year  are  a  lower 
loss  ratio,  a  diminished  expenditure,  and  an  enhanced  profit. 
In  each  detail  the  Phoenix  has  shared  in  the  common  good 
fortune.  Our  premiums  have  been  increased  by  the  satisfac- 
tory sum  of  /,'i 77,448,  our  loss  ratio  has  declined  from  48.9  to 
47.6  per  cent.,  our  expenses  from  39  to  38  per  rent,  of  the  pre- 
miums, and  our  profit  has  grown  from  ^135,000  to  ^^176,000. 
In  the  marine  field  a  phenomenal  growth  is  .shown  in  the  pre- 
mium income  of  the  chief  companies.  Our  own  revenue  from 
this  source  has  risen  from  ^1,300,000  to  ^^2,400,000.  Before  the 
war  a  marine  income  of  one  million  sterling  was  practically 
unknown  in  this  country  in  the  case  of  any  individual  company. 
.Several  companies  have  now  exceeded  this  total,  and  a  few, 
including  the  Phoenix,  have  passed  the  two  million  standard. 
The  companies  as  a  whole  have  done  e.xceptionally  well,  and 
our  own  profit  of  jf  185,000  is  one  of  the  best  results.  As  to 
the  future,  a  multitude  of  new  companies  has  lately  been  estab- 
li.shed  to  participate  in  the  common  prosperity,  and  there 
may  be  room  for  many,  if  not  all,  of  them  while  the  huge 
account,  both  of  war  risks  and  ordinary  marine  risks,  based 
upon  unprecedented  values  of  cargoes  and  shipping,  continue^ 
to  be  written.  But  after  the  war  the  situation  will  become  much 
more  difficult.  The  business  of  many  companies  will  shrink  by 
at  least  one-half,  and  the  competition  for  what  remains  will 
be  carried  on  with  great  intensity  by  an  unnecessarily  large 
number  of  competitors.  Our  experts  are,  however,  well  aware 
of  the  troubles  ahead,  and  we  have  confidence  that  the  skill 
and  judgment  which  Mr.  Sandeman  Allen  and  his  lieutenants 
have  shown  in  surmounting  the  difficulties  of  the  past  will  be 
successfully  applied  to  the  solution  of  the  new  set  of  difficulties 
which  will  arise  after  the  termination  of  the  war.  I  need  not 
dwell  specially  upon  the  accident  figures,  but.  passing  on  to 
our  life  assurance  account,  our  new  busine.ss.  like  that  of  many 
other  leading  offices,  has  shown  excellent  results,  and  it  is 
above  the  total  of  the  preceding  year.  Since  the  outbre:ik 
of  war  the  company  has  paid  war  claims  in  resnect  of  287 
policyholders  killed,  the  sum  assured  under  the  policies 
amounting  to  ^'265,000.  Last  year  the  anio'iiit  paid  was 
;if7o.530,  that  being  about  ^20.1x10  less  thai!  in  1916.  T  now 
pass  on  to  our  profit  and  loss  account,  which  shows  some  note- 
worthy features.  Y'ou  will  first  observe  that  our  free  interest 
amounted  to  ;fi6r,ooo,  and  almost  met  the  charges  for  dividend 
and  debenture  interest,  totalling  /■i67,ooo,  without  any  draft 
upon  our  trading  profits.  Next,  it  is  worthy  of  record  that 
our  trading  profits  amounted  to  ;^379,oon,  and  reached  the 
highest  sum  we  have  ever  attained.  But.  on  turning  to  the 
other  side  of  the  account,  it  is  seen  that  practically  the  whole 
of  this  targe  amount  was  absorbed  by  taxes  and  depreciation, 
so  that  we  have  to  forgo  those  considerable  additions  to  reserve 
which  have  been  customary  items  in  our  accounts.  This  is,  of 
rour.sc,  regrettable,  though  beyond  the  control  ot  the  directors. 
But  I  do  not  regard  the  year's  account  as  implying  that  we 
have  merely  "  marked  time."  On  the  contrary,  it  must  be  the 
source  of  the  utmost  congratulation  that  we  should  have  been 
able,  as  a  result  of  our  successful  administration  of  the  com 
panv's  affairs,  to  contribute  so  large  a  sum  as  /■230,oix)  out  of 
profits  to  the  financial  support  ot  the  Government  in  the  pro- 
secution of  the  war.  This  sum  in  increased  by  lhe_  income-tax 
paid  upon  our  interest  receipts  to  ;^4oo,ooo.  Reverting,  finally, 
to  the  position  of  our  own  company,  I  think  I  may  fairly  assert 
thnt,  whether  we  look  bark  or  look  forward,   the  conclusion  we 


586 


XTbe  investors'  IRevlew. 


JUNIC   ,5,   191b. 


arrive  at  is  equally  satisfactory.  In  the  last  10  years  our 
assets  have  increased  from  ^7,360,767  to  ;/^i9,o4i,o65,  our  total 
income  from  ^2,206,156  to  £S'^4'<33'>  ^^nd  our  profits  from 
^^267,556  to  ;^379,4ii.  Few  companies  can  show  a  like  progress 
in  the  same  short  space  of  time.  As  to  the  future,  in  spite  of 
much  uncertainty  as  to  the  course  and  duration  of  the  desperate 
struggle  between  groups  of  nations  with  such  different  ideals 
and  ambitions.  I  think  we  can  contemplate  with  unqualified 
rquanimity  our  solid  position  and  favourable  prospects.  I 
have  unbounded  confidence  in  the  continued  prosperity  and 
progress  of  our  company,  be  the  conditions  what  they  may. 

The    Deputy-Chairman    (Mr.    Bristow    Bovill)    seconded    the 
resolution,  which  was  carried  unanimously. 


SIEMENS    BROTHERS    AND    CO. 

The  thiny-scveuth  ordinary  geiK-ral  meeting  of  Siemens 
iirotheis  una  Co.,  i^imilwd,  was  lieiu  oil  luesaay  at  W'inctiestti 
House,  Oiu  JjroaU  street.  Mr.  O.  jiure  mtciue,  Um  cnainnan, 
pfesiaing. 

Tne  Secretary  (Mr.  W.  Wheeler)  having  read  the  notice  cou 
vcniiig  tnc  nieetihg  and  the  auditors'  report, 

The    Chairman   said:     lUe   past   policy    ot   the  company   has 
been   continued    throughout    1917,   uuring    which   the    business 
exceeded  that  of   1910    by  about  one-third.      Ihe  expansion   in 
output    occurred    principally    in    insulated    wires    and   cables, 
ebonite  and    batteries,    but   also   the   development  in  automatic 
teiepnony,  which  was  foreseen  by  tliis  company  before  the  war, 
was  commued  on  a  considerable  scale,      ihe  advantages  o£  the 
elimination  oi  the  human  exchange  operator  have  been  demon- 
strated   in    practice,    and    all    teciinical    difficulties    have   been 
.•iurmounted.       We      are     equipped     to     provide      both     large 
exchanges    for    public    service    and   smaller    private  exchanges 
of  25  to  500  lines,  and    may  tell  you  that,  notwithstanding  tne 
demands   upon   us   for   war    work,   we    have    found    it  possible 
to  complete  a  semi-automatic  exchange  at  Port  Adelaide   (1,000 
lines)    tor   the   Common  wealth    of    Australia,    which  has    been 
working  quite  satisfactorily  for  18  months,  and  a  full  automatic 
exchange  lor  Grimsby  (1,300  lines)  for  the  General  I'ost  Office, 
which  will    very  shortly   be  handed    over,   and   to   make   good 
progress   witli  a    full    automatic    exchange  for    Stockport    (950 
lines),    also  for    the    General    Post    Office.      Many   private   ex- 
changes of  from  25  to  200  lines  have  been  established  in  muni- 
tions factories,  and  have  given  every  satisfaction.     The  profit 
of     ;^2o8,524      shows      a      substantial      increase      over      that 
of  the   preceding  year,   attributable   to   the    very   much   larger 
volume  of  business  done.     An  interim  dividend  of  10  per  cent., 
free  of  income-tax,  has  been  paid,  but  no  further  distribution 
for  the  year  1917  can  properly  be  considered  until  the  Govern- 
ment claim  for  excess  profits  duty  has  been  adjusted.     Another 
important  item  among  our  assets  is  the  company's  holding  of 
the  whole  of  the  issued  capital  of   Siemens  brothers'  Dynamo 
Works,   Limited — namely,  ^'200,000  in  shares  and  ^200,000  in 
debentures.     ."Vt  the  outbreak  of  the  war   the  share  capital   of 
this  company — that  is,   Siemens  Brothers   and   Co.,    Limited — 
amounted  to  ;^6oo,ooo,  with  ^^i 50,000  in  4  per  cent,  debentures, 
ranking   in  priority   thereto,   nearly  all   the   shares  and  about 
one-third  of   the  debentures  being    held    by    Germans.      More- 
over, the  German  shareholders  had  supplied   about  ;^i,350,ooo 
of  additional  capital  to  meet  the  requirements  of  the  growing 
business  of  Siemens   Brothers  and    Co.    and  Siemens  Brothers 
Dynamo    Works.       In     accordance     with     the     provisions     of 
the     Trading     with     the     Enemy     Amendment   Act,    1916,   the 
whole  of  the  German  interest  in  the  shares  and  the  additional 
capital  before  mentioned  was  vested  in  the  Public  Trustee,  who 
took  steps  to  realise  it  by  sale  to  a  British  buyer.     On  Decem- 
ber 14,  1917,  a  sale  was  effected  of  the  share  capital  of  Siemens 
Brothers  to  Messrs.  C.   B.   Crisp  and  Co.     An  important  pro 
vision  ot  the  contract  of  sale  was  the  issue  to  the  Public  Trustee 
by  this  company  of  debentures  to  the  amount  of  ^1,330,000,  to 
bear  interest  at  the  rate  of  4-^  per  cent,  per  annum,   in  order 
to  provide  for  the  repayment  of  the  capital  (other   than  share 
capital  and  the  participation  in    the   4   per   cent,    debentures) 
employed   in  the  business  by   the  former  German    proprietors. 
On  the  completion   of    the    arrangements    between    the    Public 
Trustee   and    the    British   purchasers     of     the     German-owned 
shares,  the  board   was   reconstituted,  and  is  now  composed  of 
the    following  : — Mr.    G.    Mure  Ritchie  (chairman),   the    Right 
Hon.   Sir  William  Bull,   M.P.,    Sir   Clifford    Cory,    Bt.,    M.P., 
the  Right  Hon.  Lord  Qiiecnborough,   Mr.   II.  J.  Thomas,  and 
Mr.   O.  Chauvin,  the  last-named  being  the  managing  director. 
Since  the  new  board  was  formed,  attention  has   been   given  to 
many    questions   concerned   with    the   development   of    Siemens 
Brothers  into  a  great  national  manufacturing   asset,  and  little 
time  has  been  available  for  discussing  a  scheme  of   rearrange- 
ment of    the    share  capital.      The    subject   has,   however,    been 
under  consideration,  and  the  board  recognise  the  advisability 
of  .so  changing  the  capital  arrangements  as  to  make  them  con- 
form with  the  ordinary  pviictice  of  British  companies.    Equili- 
brium must   be  established   between    the  share  capital   and  the 
debentures,  and  with  tTiis  object  the   board   may,  at  an   early 
date,   ask  the  shareholders  to  approve  a  scheme  for  enlarging 
the  share  capital  to  /."i, 500,000,  or  to  an  even  greater  sum,  in 
shares  of  £1  each.     Of  that  number  a  substantial  portion  would 
remain  in  reserve  for  future  developments,  but  as  to  4oo,cxx),  if 
issued  for  cash,  the  proceeds  would  be  available  for  the  retire- 
ment of  a  corresponding  amount  of  debentures.    If  the  matter  be 
carried  through  on  the  lines  I  now  roughly  indicate,  the  joint 
concerns — that  is,  Siemens  Brothers  and  Siemens  Pynamo  Works 
— would  be  represented  by  an  issued  share  capital  of  ^1,000,000, 
a  debenture  is.sue  of  ;^i  50,000,  carrying  interest  at  4  per  cent. 


per  annum,  and  the  second  debentures,  issued  to  'the  Public 
Trustee,  amounting  to,  say,  ;^i, 000,000,  carrying  interest  at 
4i  per  cent,  per  annum.  These  readjustments  are  all  .subject  to 
negotiations.  The  main  feature  of  the  Dynamo  Co.'s  trading 
for  1917  as  compared  with  igi6  is  an  increased  turnover  in  the 
United  Kingdom  and  a  decrease  overseas.  The  value  ol  un- 
executed orders  at  December  31  last  was  ;^i, 145,000.  Sine*' 
the  entry  of  the  new  directors  into  office,  negotiations  hav< 
been  set  on  foot  with  other  British  companies  doing  similar 
industrial  business,  with  the  object  of  bringing  such  manufac 
turers  together  for  the  reduction  of  unnecessary  competition 
and  the  avoidance  of  duplicating  machinery,  staffs,  workshops, 
and  offices.  .VUiances  of  this  nature  have  already  been  arrangc<l 
with  Messrs.  Dick,  Kerr  and  Co.,  Limited,  in  the  field  of 
dynamo  installations  in  all  its  ramifications,  and  other  alliances 
are  in  contemplation. 

The  Rt.  Hon.  Lord  Queenborough  seconded  the  motion,  which 
was  carried  unanimously. 


LIPION,    LIMIItU. 

The  iweiii.Lc,.  .yiciinary  general  meeting  of  Lipluii,  l^ld., 
was  helu  on  inuibclay  at  \\inchester  House,  Old  Jiioad  Strcci. 
E.C.,  .-511  Thomas  J.  Lipton,  Bart.,  K.C.V.O.  (chairman  of  the 
company),  presiding. 

ine  secretary  (.vir.  S.  ii.  Sictuuiere)  liaMug  read  the  uolice 
couvening  the  meeting  and  the  report  ol  the  auditors. 

The  Ciiairman  said  :  It  gives  me  great  pleasure  to  meet  you 
once  more,  and  to  be  able  to  present  such  a  satisfactory  report, 
especially  in  view  of  the  fact  that  the  figures  now  submitted 
snow  a  great  improvement  on  last  year,  wnich  was  in  itself  a 
record. 

The  Deputy-Chairman  (Mr.  C.  Williamson  Milne),  in  deal- 
ing with  the  accounts,  said  :  The  directors  may  tairly  claim 
t(i  na\e  handsomely  beaten  the  record  of  last  } car,  and  to  have 
substantiated  the  hopes  which  I  then  expressed.  The  financial 
position  of  the  company  has  been  materially  strengthened,  not- 
withstanding the  substantial  sum  required  for  the  dividend 
which  we  recommend  to-day. 

The  Chairman,  resuming,  said  :  Our  turnover  has  increased 
by  millions  of   pounds   .sterling.     The  actual  rate   per  cent,  ol 
profit  earned  has  been  lower  than  in  the  previous  ye;ir,  which 
means  that  we  have   been  selling  our   goods   at  a  still   smaller 
margin  of  profit,  and  that  the  largely  increased  business  which 
has   resulted    from    that   policy    has   not  only  made   up  for   the 
lower  rate   per  cent,  of   profit,  but,,  by  the  greater   volume  of 
business  done,   has  substantially  increased   our   earnings,    and 
enabled  us  to  show  you  stiU  better  results  than  we  put  before 
you   last  year.     As  the   largest  retail  distributors  of   tea,  pro 
visions,   and    groceries    in   the  world,  we   have   naturally   comt 
under  the  operations  of  the  various  restrictions  and  hmitatioub 
of  the  Ministry  of  Food.     I  am  glad  to  be  able  to  add  my  testi- 
mony to  the  benefit  that  the  control  regulations  liave  been,  not 
only  to    those   who   patronise    this   business,    but    to    the  com- 
munity  at    large.      No    one    should    find   fault   with  the   Food 
Controller ;  he  has  come  as  a  boon  and  a  blessing  to  us  all.    He 
has    reduced    our    weight,    improved    our    health    and    figures. 
(Laughter.)       Our      foreign      trade     has.     been      considerably 
curtailed    by    the    prohibition    of    export    of    food     products, 
but    any    shortcomings     in    this     direction     have     been     more 
than  compensated     for     by     the  expansion     of     our     Eastern 
trade.       We     are     making     special     arrangements     to     meet 
the     conditions     arising     from     the     war     operations,     which 
now    extend     to    both    hemispheres,     by    which    we    can    con- 
serve as  far   as  possible  our  world-wide  connection.      The   de- 
velopment of  our   Egyptian  business  has  continued.      In  addi- 
tion to  our  branches  established  in  Alexandria  and  Port  Said, 
we  have   opened   in   Cairo  a   large   cafe,   restaurant,    and    tea 
gardens,    which    have   already   become     very     popular.      Also, 
under  the  control  of  the  manager  of  our  Egyptian  business,  wc 
have,  by  the  kind  permission  of  the  military  authorities,  opened 
a  branch  in  Jerusalem,  where,  you  wiU  be  glad  to  hear,  wc  arc 
doing  excellent  business,  and   we  are  taking  business  premises 
in  Jafia,  which  we  have  good  reason  to  believe  will  also  prove 
successful.     We   have  also   taken  special   steps    to  develop  our 
Australian  and  New  Zealand  trade.     It  is  now  iny  pleasurable 
duty  to  deal  with  the  figures   of   the  divisible   profit — namely, 
^^245,949 — which  is   left,  after   placing   to  our    general  reserve 
account  the  sum  of  ;^ioo,ooo  as  the  allocation  for  the  year  under 
review.     I  am  quite  sure  all  will  see  the  wisdom  of  building  up 
our  general  reserve.     We  paid  on  March  31  last  a  dividend  on 
the  preference  shares  for  the  half-year  ended  on  the  date,  which 
amounted  to  ;^25,ooo,  and  we  reconunend  that  there  be  placed 
to  war  contingencies  reserve  account  a  further  sum  of  ;f25,ooo, 
bringing  up  that  account  to  ^^50,000.     I  am  sure  you  will  all 
agree  that  it  is  sound  policy  to  protect  the  future  of  the  busi- 
ness in  every  way  we  possibly  can.     We  propose  to  dispose  of 
^106,250   in  paying   a  final  dividend   of   8J   per   cent,   on  the 
ordinary  shares,  making,   with  the  4   per  cent,  distributed   by 
way  of  interim  dividend,  a  total  of  12^  per  cent,   for  the  year. 
We  further  recommend  that  there  be  set  aside  to  pension  fund 
a  .sum   of  ;f  15,000.  '   Shareholders   will   doubtless    recollect   that 
last  year  ;^to,ooo  was  voted  to  form   the  nucleus  of  this  fund, 
and  we  commend   to  your   favourable  consideration  the  alloca 
tion  this  year  of   an  additional  ;fi5,ooo.     There  still  remains, 
as  a  balance  to  carry  forward,  ;^74,699,  which  is  slightly  largci 
than  the  amount  brought  into  the  account  from  la.st  year.     This 
balance    forward    is   subject   to    the  payment  of   excess  profits 
tax,  the   amount  of   which  we  are  unable   at  present  to  state. 
Now,   you  wiU  expect  me  to   say  something  about   our   future 
prospects,     I  can  only  tell  you  that  I  hope  our  business  during 
the  coming  year  will  be  satisfactory  in  e^ery  way,  and  that  it 


JUN'E 


1918. 


XTbe  Jnveetors'  IRevtew. 


587 


win  not  be  my  fault  or  the  fault  of  your  directors  and  staff  if 
we  are  not  able  to  place  before  you  next  year  a  balance-sheet 
as  satisfactory  as  the  present  one.  It  is  a  great  satisfaction  to 
me  to"  know  that  the  name  of  Lipton  as  a  guarantee  of  quality 
in  food  never  stood  higher  than  it  does  to-day.  I  have  much 
pleasure  in  moving:  "That  the  report  and  statement  of 
accounts,  as  submitted,  be  received,  approved^  and  adopted." 

Mr.  H.  L.  Peters  (managing  director)  seconded  the  motion, 
which  was   carried  unanimously. 

NOBEL'S   EXPLOSIVES. 

The  forty-second  annual  general  meeting  of  the  .Nobel's  E.x- 
plosives  Co.  was  held  at  Merchants'  House,  30,  George  Square, 
Glasgow,  on  Wednesday,  Colonel  Sir  Ralph  VV.  Anstruther, 
Bart,   (chairman  of  the  company),  presiding. 

Mr.  M.  H.  Milne  (secretary)  having  read  the  notice  conven- 
ing the  meeting,  the  accounts  were  laid  upon  the  table,  and, 
after  calling  upon  him  to  read  the  auditors'  report, 

The  Chairman   said  :   As  the   report   states,   we   have   not  yet 
been  able  to  effect  a  settlement  with  the  authorities  in  regard  to 
our  liabilit}'  for  munitions  levy  and  excess  profits  dutj'  for  the 
years  1916  or   1917,  the  main  points  at   issue  being  the  amount 
of  output  allowance  under  the  Munitions  Act  and  the  post-war 
valuation  of  our  war  capital  expenditure.     That  settlement  does 
not  seem  much  nearer  than  it  has  been  for  a  long  time,  so  your 
directors    have     deemed     it    incumbent    upon    them    to    submit 
accounts   without   further   delay.      Deahng    with    the   figures    in 
the  balance-sheet,  I  would  first  refer  to  the  item  of  land,  build- 
ings, plant,  &c.     This  gives  the  written-down  value  of  all  your 
factories,    which    is  considerably  less  than    their    actual   worth, 
in ,  consequence   of    the   liberal    depreciation    policy   which    has 
been  wisely  adopted  for  so  many  years  past.     Stocks  have  been 
valued  on  our  usual  coriservative  basis,  but,  nevertheless,  that 
asset,  as  also  that  of  the  debtors,  stands  neces.sarily  at  a  high 
figure   on   account  of   the   increased  volume  of   business  trans- 
acted, coupled  with  the  enhanced  cost  of  materials,  wages,  &.c. 
Our    investments   have    been   increased    by    extending   our    in- 
terests  in  directions   not  intimately  associated   with   explosives, 
and   in  order   to  remove  any  doubt   as  to   the    nature  of   our 
investments,   I  might  say   in   passing   that,  with  the   exception 
of   ;^5oo.ooo  of   War    Loan,   these   are  not   ordinary  Stock    Ex- 
change  investments,    but    capital   holdings    in    alHed   or    sub- 
sidiary companies.     The  cash  position,  as  you  will  see,  at  the 
date  of  the  accounts  was  very  good.     The  creditor  side  of  the 
balance-sheet,  together  with  the  conservative  method  of  valuing 
assets,  reflects  the  strength  of  your  company  in  reserve  capital, 
and   it    will    be   appreciated    that    the   issued    capital   of    about 
;^2, 800,000  by  no  means  represents  the  profit-earning  capit.al  of 
your    undertaking.      When  the   employment  of   our   re.serves    is 
taken    into    account,    I    consider    that   the     ratio     of    profit     i-; 
moderate.     I  know  you  will  wish  me  to  tell  you  something  about 
the  amalgamation  of  the  companies  and  firms  employed   in  the 
explosives  and  allied  industries,  which  has  been   in  negotiation 
for  the  past  eighteen  months.     1   would   first  like  to  assure  you 
that  the   unavoidable  delay   which  has  occurred   in    parser' I 
the  scheme  in  detail  to  the  shareholders  has  (x;casioned  us  much 
regret.     There  are  various  reasons  for  this  delay,   but  I   would 
only  refer  to  one  feature.     It  w  is  at  one  time   thought  that   we 
might  arrange  with  the  authorities  a  common   basis  for  deter- 
mining  the   liabilities   under   the   Munitions  and   Finance   Acts, 
but,    unhappily,    this   proved   impossible,    and    It    is,    therefore, 
necessary  that  each  of  the  constituent  companies  should  nego- 
tiate   direct    with    the    authorities.      Xow.    many    of   you    must 
have  had  experience  of  the  difficulties  and   delays  which  occur 
in  determining  the.se  liabilities,  and  when  we  are  dealing  with 
the  number  of  companies" embraced  in  our  merger  .scheme,   you 
will   appreciate   that  this    fact    alone    has    entailed   considerable 
delay.      Incidentally,    I    would   say    it  Is   intended    that   all    the 
companies  should  come  in  on   a  uniform  basis,  and  it  is,  there- 
fore, essential  that  the  assets  and  liabilities  be  scrutinised  very 
closely   by  the  accountants  entrusted    with   the   working   out  of 
the    scheme,    which    in   Itself   involves  a    mass  of  detail    beyond 
anything  that  we  had  originally  contemplated.   However,  ladies 
,■111(1   ccntlpnien,   I  think  our  work  is   nearine  completion,   and   I 
am  hopeful  that  we  shall  be  ab'e  to  submit  the  scheme  to  you  in 
the  course  of  the  next  two  months. 

Mr.  M.  Pearce  Campbell  seconded  the  motion  for  the  adoption 
of  the  report  and  accounts,  which  was  carried  unanimously. 


ELDER    DEMPSTER    AN'D    CO. 

The  eighth  ordinary  general  meeting  of  Elder  Dempster 
and  Co.,  Ltd.,  was  held  on  Tuesday  at  23,  Billiter  Street,  E.C., 
Sir  Owen  Philipps,  G.C.M.G.,  M.P.  (the  chairman),  presiding. 

The  Secretary  (Mr.  Picton  H.  Jones)  read  the  notice  and 
the  auditors'  report. 

The  Chairman,  in  the  course  of  his  speech,  said  :  The  dimen- 
sions and  scope  of  the  company's  undertaking  may  be  judged 
by  the  fact  that  the  ordinary,  preference,  and  debenture  capital 
and  reserves  now,  amount  to  nearly  5,^  millions  sterling,  of 
which  one  million  .stands  to  the  credit  of.  the  reserve  fund. 
While  our  shipping  connections  extend  to  many  parts  of  the 
world,  our  most  important  business  is  the  maintenance  of 
steamship  services  between  the  United  Kingdom  and  West 
.•Vfrican  ports  and  the  linking  up  of  these  ports  with  one 
another.  As  there  are  no  less  than  OQ  such  ports  on  the  West 
•African  Coast,  the  majority  of  which  are  either  open  road- 
"iteads  or  shallow  draft  harbours,  with  few  facilities  for  rapid 
handling  of  ships  or  cargo,  special  types  of  vessels  are  indis- 
pensable, and  consequently  the  trade,  even  In  normal  times,  is 
one  of  the  most  difficult  in  the  world,     t'nder  war  conditions  it 


was  inevitable  that  some  of  these  ports  should  suffer  inconveni- 
ence on  account  of  tlie  universal  shortage  of  shipping  tonnage, 
and  that  important  local  trading  interests  should  be  affected 
adversely.  On  the  other  hand,  owing  to  the  adaptability  of 
West  African  products  for  purposes  of  food  and  munitions,  and 
to  the  comparative  proximity  of  the  West  African  coast  to 
these  shores,  I  believe,  speaking  generally,  the  oversea  trade 
of  West  Africa  has  been  less  interrupted  than  that  of  any 
other  country.  At  the  same  time,  the  war  has  brought  into 
prominence  the  uses  and  value  of  the  produce  of  these  vast 
tropical  and  sub-tropical  territories,  for  which  there  now  seems 
every  prospect  of  permanent  demand  in  this  country.  As  a 
striking  example  of  this,  it  was  stated  in  the  House  of  Common.'i 
last  week,  on  behalf  of  the  Government,  that  this  country's 
capacity  for  producing  margarine  (in  the  manufacture  of  which 
large  quantities  of  West  African  oil-bearing  nuts  are  used)  has- 
increased  fourfold  during  the  war,  and  that  we  are  now  inde- 
pendent of  foreign  supplies.  The  system  of  control  and  the 
in.stitution  of  priority  lists  for  cargo  has  involved  hardships  in 
.some  directions,  more  especially  in  the  case  of  the  Gold  Coast, 
from  which  cocoa  is  the  principal  export.  The  situation  i.i, 
however,  receiving  the  careful  consideration  of  the  Colonial 
Office  and  the  Ministry  of  Food,  and  I  am  hopeful  that  some 
amelioration  will  result.  Manganese  ore,  which  was  shipped 
from  the  Gold  Coast  for  the  first  time  in  1916,  came  forward 
in  much  increased  quantities  during  1917.  All  our  steamers 
have  been  continuously  employed  throughout  the  year  under 
review.  The  number  engaged  in  our  regular  commercial  ser- 
vices has  been  considerably  reduced,  owing  to  the  increased 
demands  on  tonnage  for  direct  national  purposes.  In  July,  1917. 
the  Public  Trustee  offered  for  sale  by  auction  the  enemy-owned 
shares  of  the  Pacific  Phosphate  Co.,  Ltd.,  when  a  large  hold- 
ing was  acquired  by  us.  The  deposits  of  phosphate  In  certain 
of  the  Pacific  Islands  over  which  that  company  owns  conces- 
sions are  probably  unequalled,  both  as  regards  quality  and 
extent,  by  any  other  known  sources  of  supply.  Perhaps  the 
most  difficult  problem  with  which  the  future  confronts  us  is 
that  of  making  good  the  gaps  in  our  fleet  due  to  war  losses,  and 
of  providing  adequately  for  the  requirements  of  our  various 
trades  upon  the  return  of  normal  conditions.  Any  attempt 
under  existing  conditions  to  forecast  the  future,  as  re"ardi 
shinning  In  qeneral  or  the  We.st  African  trade  in  nartlcular. 
would  be  futile.  All  we  can  do  at  present  is  to  concentrate  upon 
the  prosecution  of  the  war  with  the  utmost  vigour,  and  to  lay  our 
nians  for  the  future  with  a  view  to  provicling  adenuatelv  both 
for  the  maintenance  and  expansion  of  the  shipping  trades. 
wlrVti  this  old-established  compnny  has  done  so  m.uch  to  create 
and  develop. 

Mr.    J.    Craig    seconded    the    resolution,    which    was    carried 
nn^nimcusly. 


BISICHI   TIN    CO    (NIGERIA). 

The  seventh  annual  general  meeting  of  the  Bisichi  Tin  Co. 
(Nigeria),  Ltd.,  was  held  on  Monday  at  the  Cannon  Street 
Hotel,  Mr.  James  Gardiner,  the  chairman  of  the  company,  pre- 
siding. 

The  Chairman  stated  that  the  output  for  the  year  ended 
December  31  last  showed  a  marked  decrease,  partly  owing  to 
difficulties  caused  by  the  abnormal  conditions  created  by  the 
continuance  of  the  war  and  partly  to  the  necessity  for  a  revision 
of  the  position  in  Nigeria  in  view  of  providing  for  further  de- 
velopment of  work  In  anticipation  of  the  current  year's  opera- 
tions. As  a  compensatory  factor,  there  had  been  a  considerable 
advance  in  price,  which  had  enabled  them  to  obtain  a  result 
which,  on  the  whole,  did  not  compare  unfavourably  with  the 
realisations  of  the  previous  year.  A  year  ago  the  price  was 
^236  I2S.  6d.,  while  the  attitude  of  the  Govermnent  to  the  pro- 
ducers could  hardly  be  considered  benevolent,  and  they  were  dis- 
couraged from  the  belief  that  it  was  an  e.ssential  metal.  The 
entry  of  the  Americans  into  the  war  and  the  consequent  mobilisa- 
tion of  their  industries  engaged  in  the  production  of  munitions 
gave  an  added  impetus  to  demand,  and  the  introduction  of  the 
ficence  system  speedily  revealed  the  fact  that  supply  was  barely, 
if  at  all,  sufficient  for  all  requirements.  From  the  beginning  of 
October,  a  steady  advance  in  price  set  in,  and  the  record  was 
made  at  ^^380  a  month  ago.  Since  then  there  had  been  a  de- 
cline, the  price  on  the  last  market  day  (Friday)  being  ^^330.  As 
the  result  of  these  conditions,  the  company's  ore,  which  averaged 
7r.oi)  per  cent,  of  metallic  contents,  realised  an  average  price  of 
;fi94  I2S.  2d.  per  ton  as  against  ;f  136  5s.  2d.  in  the  previous 
year.  Taking  the  accounts  as  a  whole,  they  might  be  considered 
very  satisfactory  under  existing  conditions.  The  all-in  costs  on 
the  ore  realised  amounted  to  .^iiq  123.  8d.,  leaving  a  nett  profit 
of  approximately  £ye,  per  ton.  While  the  plant,  machinery,  &c., 
had  been  still  further  written  down,  the  tangible  and  liquid 
funds  of  the  company  stood  at  a  high  figure,  ;^63,ooo.  Last  year 
he  told  the  shareholders  that  they  might  anticipate  results  about 
equal  to  those  of  the  previous  year.  On  the  present  occasion, 
with  the  development  projected  and  the  prospecting  work  done, 
they  might  confidently  look  for  an  increase  of  output  over  that 
of  1017  and  a  corresponding  increase  in  profits,  and,  as  a 
natural  consequence,  they  would  be  justified  in' looking  forward 
to  an  increased  dividend.  He  concluded  by  moving  the  adop- 
tion of  the  report  and  accounts. 

Mr.  W.  Scott  Coutts  seconded  the  motion,  which  was  carried 
unanimously;  and  resolutions  were  also  passed  declaring  a  final 
dividend  of  75  per  cent.,  less  income-tax,  making  12^  per  cent, 
for  the  year,  and  re-electing  the  retiring  director  and  auditors. 

The  meeting  closed  with  a  vote  of  thanks  to  the  chairman  and 
the  directors  and  the  manager  and  staff  in  Nigeria. 


58S 


Ube  investors'  1Review» 


June  15,  1918. 


THE  FORESTAL  LAND,  TIMBER  and  RAILWAYS  COMPANY, 


LIMITED. 


REPORT    OF    THE    DIRECTORS 


TO   BE  PRKSENTED   TO   THE 


Shareholders  at  the  Twelfth  Ordinary  General  Meeting,  to  be  held  at 

River    Plate    House,    Finsbury    Circus,    London,   E.G.,  on  Thursday, 

the  20th  June,   191 8,  at   11.30  a.m. 


The  Dliectoi's  submit  the  Beport  and  AccouQte  for  the  year  ended  31st 
December,  1917. 

The  rtsulta  of  the  year,  though  they  fall  considerably  ehort  of  those  of  the 
preceding  year,  may  be  regarded  as  highly  satisfactory  when  taking  into  con- 
uideration  the  abnormal  and  very  difflenit  circumstances  in  which  the  business 
of  the  Company  had  to  be  carried  on. 

There  has  been  written  off  from  the  year's  profit  for  depreciation  on 
Buildings,  Plant,  Machinery,  Railways,  Felled  Timber,  4c.,  the  sum  of 
£127,265  19a  3d,  and  after  making  simdry  adjustments  the  amount  to  the  credit 
of  Depreciation  Account  stands  at  £883,132  5s  9d. 

After  providing  for  Debenture  Interest,  London  Charges,  Eemnneration  of 
Managing  Director,  London  and  Local  Boards,  &c,  there  remains  a  profit  for 
the  year  of  £822,395  43  Id,  which  the  Board  recommend  Bhould  be  appropriated 
as  follows  :— 

£       s    d  £       s    d 

To  Beserye  for  Excess  Profits  Duty,  Income 

Tax,  &o 

To  Special  Reserve  Account       

To  the  Preference  Shares — 

The  fixed  cumulative  Preferential  Divi- 
dend of  6  per  cent,  per  annnm   . .        . .        92,751    1 
25  per  cent,  of  surplus  profits         . .        . .        94,911 


200,000 
150,000 


To  the  Ordinary  Shares— 

75  per  cent,  of  surplus  profits 


187,662    1    0 

284,733    3    1 

£822,395    4    1 


To  the  amount  of  £187,662  Is,  Od.,  attributable  to  the  Preference  Shares  has 
to  be  added  the  sum  of  £46,061  Is.  4d.  brought  forward  from  the  previous  year, 
making  a  total  of  . .  £233,723    2    4 


An  Interim  Preference  Dividend  of  6  per  cent, 
on  1,545,850  shares  paid  in  January,  1918,  in 
respect  of  the  year  1917  absorbed  . . 

The  Directors  now  recommend  the  payment 
ol  a  final  Dividend  on  the  Preference  Shares 
ol  6  per  cent,  (making  12  per  cent,  for  the 
vear) 

carrying  forward  to  the  credit  of  holders  of 
Preference  Shares  


£92,751    0    0 


92,751 
48,221 


0    0 


,£233,723    2    4 


To  the  amount  of  £284,733  3«  Id,  attributable  to  the  Ordinary  abarei  must 
be  added  the  sum  of  £138,161  12s  5d  brought  forward  from  the  prevhrai  year, 
making  a  total  of £422.894  15    6 

An  Interim  Ordinary  Dividend  of  6  per  cent, 
on  1,545,849  shares  paid  in  January,  1918, 
in  respect  of  the  year  1917,  nbiorbed  . .       £92,750  IS  10 

The  Directors  now  recommeml  the  payment  of 
a  final  Dividend  on  the  Ordinary  Shares  of  13 
per  cent,  (making  18  per  cent,  for  the  year)      185,501  17    8 

carrying  forward  to  the  credit  of  bolders  of 
Ordinary  Shares 144,641  19    0 


MI2,g»4  15    6 


The  elimination  of  alien  enemies  from  the  stafi  and  all  brancbee  of  the 
Company's  activities,  which  has  been  systematically  carried  oat  in  accord 
with  the  Britisii  Government,  was  completed  during  the  year  under  review 

The  Directors  deeply  regret  to  report  the  death  of  Mr.  Victor  Negri,  late 
Chairman  of  the  Local  Board  in  Buenos  Aires,  who  had  rendered  eminent 
services  to  the  Company  since  its  inception.  The  Directors  desire  to  place  on 
record  their  sense  of  his  irreparable  loss. 

The  Directors  who  retire  by  rotation  are  Sir  Arthur  Lawley,  Baron 
Emile  Beaumont  d'Erlanger  and  Mr.  Leon  BneS,  who  offer  themselves  for 
re-election. 

The  Anditors,  Messrs.  Ueloitte,  Plender,  OritBtbl  A  Co.,  offer  themselres  for 
re-election. 

A  list  of  members  of  the  Staff  who  have  joined  His  Majesty's  Forces  and  the 
Armies  of  the  Allies  is  attached  to  the  Beport. 

A  form  of  proxy  is  enclosed  for  the  ose  of  shareholders,— By  order  of  the 
Board, 

O.  J.  BUXTON,  SecreUry  and  London  Manager. 

149  Leadenhall  street,  London,  E.C.3. 
11th  June,  1918. 

It  is  proposed  to  post  Dividend  Warrants  on  the  5th  July. 


BALANCE    SHEET,    31st    December,    1917. 

CAPITAL,    LIABILITIES    AND    RESERVES. 
Share  Capital— Authorised  :—  £         s    d         £         s    d 

1,612,5C0  Preference  Shares  of  £1  each 
(entitled  to  a  fixed  cumulative 
dividend  of  6  per  cent,  per  annum 
and  25  per  cent,  of  the  surplus 
profits  available  for  dividend)  . .  1,612,500  0  0 
1,612,500  Ordinary  Shares  of  £1  each  (en- 
titled to  75  per  cent,  of  the  surplus 
profits  available  for  dividend)      ..    1,612,5«0    0    0 

£3,225,000    0    0 

Issued  :  — 
1,545,850  Preference  Shares  of  £1  each  fully 

paid         1,545,860    0    0 

1345,849  Ordinary  Shares  of  £1  each  fully 

paid         1,545,849    0    0 

3,091,699    0    0 

Five  per  cent.  First  Mortgage  Refunding  Debentures  :— 
Author  sed  and  Issued  ..        ..     £1,200,000 

Amount  outstanding  per  last  Account        ..    1,143,000    0    0 
Deduct— 
Debentures  drawn  in  1917  for  redemption     16,500    0    0 

= 1,126,500    0    0 

Five  per  cent.  Mortgage  Debentures,  1914: — 
Authorised  and  Issued  ..        ..     £1,200,000 

Amount  outstanding  per  last  Account        ..    1,171,900    0    0 
Deduct — 
Debentures  drawn  in  1917  for  redemption     15,000    0    0 

1,156,900    0    0 

Debentures  drawn  for  redemption  :  amount  outstanding        . .         19,751  10    0 

Debenture  Interest  accrued  to  date 47,856  13    4 

Depreoia'ion  Aooount  (including  sums  set  aside  for  redemption 

01  Debentures) 883,132    5    9 

Keacrve  for  Excess  Profits  Duty,  Income  Tax,  4c.  800,000    0    0 
Less  Payments  on  Account  and  Balance  of 

Income  Tax  Account,  1917 660,000    0    0 

140,000    0    0 

Reserve  Account 772,924  15    0 

Special  Reserve  Account 450,003    0    0 

Sundry  Credit  Balances,  inolndlng  Debts  due  by  the  Company 

and  Bills  Payable        1,038,340  12  11 

Unclaimed  Interest  and  Dividend 13,280  19    7 

Undivided  Profit  per  Directors'  Report  on  the 
Accounts  to  31st  December,  1916  ;— 
Preference  Shareholders  . .        . .      ...        46,061    1    4 

Ordinary  Shareholders 138,161  12    5 

184,222  13    9 

Profit  and  Loss  Account : — 
Profit  for  year  to  31st  December,  1917,  subject 
to  BzoesB  Profits  Duty 822,395    4    1 

£9,747,003  14    S 

Noxx, — There  are  contingent  liabilities  in 
respect  ot  Bills  Discounted,  Oontikcts 
and  Disputed  OUimi. 


PROPERTIES    AND    ASSETS. 

£         9     d 
Freehold  Lands  (2,623,584  acres  of  timber  lands,  2,323,975  acres 

of  pastoral  land) ;  Railways,  Factories,  Machinery  and  Plant ; 

Working  Bullocks  and  Horses  ;  Steamers,  Bargee  and  Carts  ; 

Buildings,  Wells,  Fences,  Furniture,  etc.  . .         . .         . .    4,454,904  19    3 

Holdings  in  Associated  Undertakings  and  other  Investments, 

at  Cost         571,41116    2 

Livestock        454,152  10    9 

Stocks  of  Extract  and  Felled  Timber  1,$EZ,661    9    7 

Stocks  of  Stores  and  Materials 372,169  10    4 

Sundry  Debit  Faiences,  including  Debts  dae  to  the  Company, 

Bills  Receivable  and  Payments  in  Advance         960,197     1  10 

British  Government  War  Loans,  valne  at  3lBt  December,  1917. .       456,393  18    9 

British  Government  Treasury  Bills 586,518  15    8 

Cash  at  Bankers  and  in  hand 228,593  12    1 


£9,747,003  14    5 


PROFIT   AND    LOSS    ACCOUNT,    Year   to    31st   Deo..   1917. 

Dr.  £  s  d 
London  Charges,  Legal  Expenses,  Remuneration  of  Managing 

Director,  London  and  Local  Boards,  Trustees'  Fees,  Ac.  . .  54,590  16  0 
Interest  on  Debentures,  Income  Tax  thereon,  and  Premitmi  on 

Debentures  redeemed 144,687  10  0 

Depreciation 127,265  19  3 

Balance— Subject  to  Excess  Profits  Dnty 822,395    4  1 

£1,148,939    9  4 

Cr.  i  i  J 
Profit  on  Trading,  Dividends  from  .\ssociated  Undertakings, 

Interest  on  Investments,  Ac.          1,148,509  18  4 

Transfer  Fees,  Ac,  London        429  11  0 

£1,148,939    9  4 


On  behalf  ot  the  Board, 


E,  B.  s'ERLANOER, 
JOSEPH  C.  BALDWIN,  Junr  , 


Directors. 


REPORT  of  the  Auditors  to  the  Shareholders  of 
THE  FORESTAL  LAND,  TIMBER  and  RAILWAYS  COMPANY,  LIMITED, 

We  have  examined  the  Accounts  of  the  Company  in  London  and  Bnenoi 
Aires  for  the  year  ended  31et  December,  1917.  We  have  obtained  all  the  in- 
formation and  explanations  we  have  required,  and  in  our  opinion  the  above 
Balance  Sheet  is  properly  drawn  up  so  as  to  exhibit  a  true  and  correct  view  of 
the  state  of  the  (Company's  affairs,  according  to  the  best  of  our  information 
and  the  explanations  given  to  ns,  and  as  shown  by  the  books  of  the  Company. 

DELOITTE,  PLENDER,  GRIFFITHS  &  CO.,         )       »„ji4„„ 
Chartered  Accountants,  t      """o"' 
5,  London  Wall  Buildings, 
Finsbury  oircui,  E,C. 
t«iJ«m»,19«, 


rriated  by  the  St,  Cliuikts  Press,  Ltd 


b|t  Thk  FaoriuaToit 


Portuga'  Street,  Kingsway,  London,  W.C,  tor  the  Proprietor  of  Tnk  lity»«TO«»'  R«y»w,  uti  iWi^Jj* 
fOR,  Norfolk  House,  Norfolk  Street,  Strand,  W.0, 1.— JIM  i},  «»rt.  .  '  tm  flW» 


^c 


FOUNDED    Br    A.     i/.     WILSON,     FEBRUARY,     1892 


^ifl  .Af. 


Vol.  XLI.~No.  1,068.] 

NEW  SERIES. 


rRegistered  as  a] 
L    Newspaper.    J 


SATURDAY,  JUNE  22,  1918. 


[Price  6d. 


CONTENTS. 


Leading  Articles: — A  Five  Hundred   Million  War  "Refresher" 

—  The  Land  and  the  Diseases  Thereof  —  Our  Foreign 
Trade  in  May  —  A  German  Philosopher  on  German  Trade 
Aims  and  Methods  —  By-the-Way  War  Notes  —  Viscount 
Grey's  League  of  Peace  and  Mr.  Runciman's  Committee 
(pp.  591-4,  596-8  and  600). 

Passing  Events; — Revenue  —  Natf&nal  War  Bond  Sales  — 
Channel  Tunnel  —  Department  Committees  on  Post- War 
Trade  —  Russian  Committee  —  Trust  and  Loan  of   Canada 

—  Brazil  Railway  —  Mexican  Railway  —  Anglo-Chilian 
Nitrate  and  Railways  (pp.  594-6). 

American  Business  Notes  : — Next  Liberty  Loan  in  November  — 
Railway  Administration's  Capita!  Expenditure  —  Atlantic 
Coast  Line  —  Wabash  —  Third  Liberty  Loan  Result 
(pp.  598-9). 

Insurance  News  : — Gresham  —  Personal  Aircraft  Risks  —  Trade 
Indemnity  Co.  —  Insurance  of  Foreign  Bad  Debts  — 
Scottish  Equitable  Valuation  (p.  599). 

Mining  News: — Village  Main  Reef  —  Apex  Mines  —  Anglo- 
French  (Transvaal)  Navigation  Coal  Estates  —  Rand 
Collieries  —  Mountain   Copper  —  Glencoe  (Natal)  Collieries 

—  Boena  Tierra  Mining  —  Ropp  Tin  —  Namaqua  Copper 
(p.  601). 

Company  Results  in  Brief  (p.  598). 
May  Rubber  Outputs  (pp.  599-600). 


;jAT/::ji/;  ,m. 

Money   and    Credit    Notes  : — Money     Rather     Dearer  —  Bank 
Return —  Canadian   Northern    Railway    Notes  —  Dominion  f! 
Loan  of  £50,000,000  Rumoured  —  United  States  Credits  tttT 
the    Allies  —  Northcliffe    Press    Malignity    about    GermaH^ 
Banks  —  New  York  Chronicle   on    Cost   of   War   Loans  — 
Foreign  Exchange  Movements  —  Silver  (pp.  602-4). 
Tea,    Oil,  and  Rubber: — Rubber  Market  —  Batu  Caves  Rubber 
—  Lanadron    Rubber    Estates  —  Ledbury   Rubber   Estates 
(p.  607).  ,1T 

Company  Meetings  :— Ebbw  Vale  Steel,  Iron  and  Coal  —  IndielT 
General  Navigation  and    Railway  —  Forestal  Land,  Timber 
and  Railways  —  Calcutta   Tramways  —  J.  Lyons  and  Co.  — 
Trust    and    Loan    of    Canada  —  Wm.    Cory   and    Sonr^g 
Channel  Tunnel  'pp.  608-15).  '_,  ^  ^ 

What    Balance    Sheets    Tell : — Bombay,    Baroda,    and    Central  ' 
India    Railway    Co.    —    New     Cape     Central     Railway    — 
Leopoldina  Terminal  Co.  —  Howard  and  Bullough  —  Ruston,"" 
Proctor    and    Co.  —  Brownlee   and   Co.  —  British  Electric 
Traction  Co.   (p.  615). 

The  Week  in  Mines  (pp    600-1). 
Public  Income  and  Expenditure  (p.  601).  ,. 

The  Week's  Stock  Markets  (pp.  604-5). 
London  Produce  Markets  (pp.  605-6). 

Dividends  Announced  (pp.   606-7). 
Answers  to  Coi respondents  (p.  607). 

Traffic  Returns  (p.  616).  — ■  •'  ' 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Speaial   Charter  of  the   Imperial 
Japanese  Government,  1899. 

TAIPEH,    FORMOSA. 


HEAD   OFFICE      - 


Amoy,  Batavia^  Bombay,  Canton,  Foochow,  Hankow,  Hongkongi 
Kuikiang,  Kobe,  New  Yoik,  Osaka,  Shanghai,  Singapore,  Swatow, 
Soerabaya,  Tokyo,  and  every  important  city  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere.  ' 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Olfice :  IS,  Gracechurch  Street,  London,  E.C.  3. 


Capital  Authorised  

Capital  Issued      

Capital  Paid  Up 

Reserve  Fund  (Undivided  Profits) 


£1^00,000 

1,123,000 

562,500 

708,432 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1 880. 

Subscribed  Capital         Yen  48,000,000 

Capital  Paid  Up Yen  42,000,000 

Reserve  Fund         ..        ..  ,.    Yen  23,100,000 

Head  Office:   YOKOHAMA. 
Branches  and  Agencies  at 
Bombay.  Honolulu.  Newchwang.  Shimonoseki. 

Buenos  Ayres.  Hong  Kong.  New  York.  Singapore. 

Calcutta.  Kobe.  Osaka.  Sourabaya. 

Changchun.  Los  Angeles.  Peking.  Sydney. 

Dairen  (Dalny).  Lyons,  Rangoon.  Tiemstfl. 

Fengtien  (Mtikden).       Manila  San  Francisco.  Tokyo. 

Hankow.  Nagasaki.  Seattle.  Tsinanfu. 

Harbin.  Shanghai(  Tsingtau. 

The  Bank  buys  and  receives  for  collection  Bills        Exchange,  issues  Draits 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  Miave  places  and  elsewhere, 
and  transacts  General  Banking  Business. 
Deposits  received  for  fixed  periods  at  rates  to  be  obtained  on  application. 
London  OflSce ;   7.  BISHOFSGATE.  E.C.  2. 

K    TATSUMI,  Mwager. 


The  union  BANK  of  AUSTRALIA 

EsTABLiSHSD  1837.  LlMrXED.  Incorporated  1880. 

Authorised  and  Issued  Capital,  £6,000,000. 

Paid-up  Capital,  £2,000,000;  Reserve  Fund,  £2,000,000;  together    £4,000,000 

Reserve  Ltability  of  Proprietors , 4,000,000 

Total  Capital  and  Reserves £8,000,000 

HEAD  OFFICE-        •        -        71 .  CORNHILL,  LONDON,   E.C.  3. 

DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Australian 
States  and  Dominion  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made. 

BILLS  are  purchased  or  sent  for  Collection. 

DEPOSITS  are  received  for  fixed  periods  on  terms  which  may  be  ascertained 
oa  application. 


Branches : 

INDIA,   BURMAH.   CEYLON.    STRAITS    SETTLEMENTS 

CHINA,    AND    PORT    LOUIS.    MAURITIUS. 

The  Bank  buys  and  sells  Bills  of  Exchange,   issues   Letters   of  Credit  an-i 
Circular  Notes,  and  transacts  banking  and  agency  business  in  connection  with 

the  East,  on  terms  to  be  had  on'application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annom.     Rates  for  other 

periods  on  application. 

On  current  accounts  interest  is  allowed  at  1  percent,  perumum  on 

daily  balances. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  1862. 

Authorised  Capital   £4,000.000 

Paid  -up  Capital 1 .800,000 

Reserve  Fund    2,000,000 

BRANCHES- 
ARGENTINE.  —  Buenos    Aires,    Rosario.     Mendora,     Concordia,    Bahia 
Blanca,  Cordoba.  Tucunian,    Parana,   Barracas  (Buenos  Aires),   Once 
(Buenos  AireS/,  Boca  (Buenos  Aires),  Calle  Santa  F6  (Buenos  Aires), 
Calle    B    de    Irigoyen    (Buenos    Aires),      URUGUAY.— Montevideo, 
Montevideo    Agencv    (Calle    Rio     Negro),    Paysandu    (Agency),    Salto 
(Agency).        BRAZIL.  —  Rio    de    Janeiro,    Sao    Paulo,    Santos,    Per- 
nambuco,  Para,  Bahia,  Victoria,  Curityba,  Manaos  (Agency).     CHILI— 
Valparaiso,  Santiago.      FRANCE— Paris  (16  Rue  Hal^vy).      Agency  in 
New   York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued.    Bills  negotiated, 
advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


UNION      BANK     OF     CANADA. 


Incorporated  1865. 


Head  Gefice  :  WINNIPEG. 


PAID-UP  CAPITAL 

RE5T    AND    UNDIVIDED    PROFITS 
TOTAL    ASSETS    EXCEED 


$5,000,000 

t3.6oo,ooo 

$143,000,000 

The  Bank  has  over  300  Branches  in   CanadA,  and  Agents  in  the  principal 
cities  in  America.        General  Banking  Business  Conducted. 

Deposits  Received  for  fixed  periods  at  favourable  rates,   whioh  may  be 
ascertained  on  application  to 

Loiiitoii  OffiottS  :  6.  PRINCC5  STREET.  E.G.  2,  and  28.  lUYMMHCiT^  S.W. 


Naw  York  Agenoy :  4t,  VaJI  SCratt 


590 


Zbc  Jnpcstors'  TReview. 


JrNF,  22,   1918. 


BANKS. 


CHARTERED  BANK  OF  INDIA, 
AUSTRALIA,  AND  CHINA, 

38,  Bishopsgate,    London,  E.C.  2. 

Incorporated  by  Royal  Charter. 


Capital,  £1,200,000.     Reserve  Fund,  £2,000,000. 


Court  of  Directors. 


SIR  MONTAGU  CORNISH 

TURNER,  Chairman, 
SIR    DUNCAN    CARMICHAEL. 
THOMAS  CUTHBERTSON,  Esq. 
SIR  ALFRED  DENT,  K.C.M.G. 

Manatfera:T.  H.  WHITEHEAD  andW.  E.  PRESTON 
Sub-Manager:  J.  S.  BRUCE. 


WILLIAM       HENRY        NEVILLE 

GOSCHEN,  Esq. 
The  Right    Hon.  LORD  GEORGE 

HAMILTON,  G.C.S.I. 
WILLIAM  FOOT  MITCHELL,  Esq. 
LEWIS  ALEXANDER  WALLACE, 
[Esq. 


Bankers : 

THE    BANK    OF    ENQLAND. 

THE    LONDON    CITY    AND    MIDLAND    BANK,    Limited. 

THE  LONDON  COUNTY,  WESTMINSTER  &  PARR'S  BANK,  Limited. 

THE  NATIONAL  PROVINCIAL    &    UNION    BANK    OF     ENGLAND, 

Limited. 

THE    NATIONAL    BANK    OF   SCOTLAND.    Limited. 

The  Corporation  buy  and  receive  for  coUeciion  Bills  of  Exchange,  grant 
Drafts  and  transact  general  banking  business  connected  with  the  East. 

DEPOSITS  OF  MONEY  are  received  for  fixed  periods  on  terms  which 

nay  be    ascertained  on  application.       Interest  payable    half-yearly, 

30th  June  and  31st  December. 

THE    BANK   OF 
BRITISH    NORTH    AMERICA. 


INCORPORATED  by  ROVU  CHARTER  ItM. 

jf  1,000,000.  RESERVE  FUND  ..  £620,000. 

LONDON,  E.C.  3. 


Established  1836. 
PAID-UP  CAPITAL  .  _   „ 

Head  Office:— 5,  GRACECHURCH  STREET, 
Court  of  Directors. 
Lieut  E.GEOFFREY  Hon.  A.  R.  MILLS,  M.P. 

HOARE,R.N.V.R.    MajorC.  W.TOMKINSON 
F.  LUBBOCK.  G.  D.  WHATMAN. 


Lt.-Col.  F.  R.  S.  BALFOUR 
J.  H.  BRODIE. 
J.H.  MAYNECAMPBELL 
E.  A.  HOARE. 


INSURANCE. 


SPECIAL  FACILITIES  FOR  COLLECTION  OF  BILLS,  &c. 

Beposlts  received  at  rates  which  may  be  obtained  on  application. 

ALL     KINDS      OF      BANKING      BUSINESS     TRANSACTED 


NOTICES. 


IMPERIAL   JAPANESE    GOVERNMENT 

4  PER  CENT.  LOAN  OF  1899. 
Coupon  Due  30tb  June,  1918. 

IMPERIAL    JAPANESE    GOVERNMENT    4    PER 

CENT.   LOAN  OF  1905. 

Coupon   Due   1st    July,  1918. 

NOTICE  IS  HEREBY  GIVEN  that  the  above  COUPONS 
will  be  PAID  on  and  after  the  ,1st  July,  1918  (Saturtiays 
excepted),  between  the  hours  of  11  and  3,  at  the  Yokohama  Specie 
Bank,  Ltd.,   where  lists  may  be  obtained. 

Coupons  must  be  left  three  clear  days  for  examination  prior 
to   payment. 

For  the  Yokohama  Specie  Bank,  Ltd., 

K.  TATSUMI. 
9,  Bishopsgate,  E.C.  2,    17th  June,    1918. 

SOUTH  MANCHURIAN  RAILWAY  ^  PER   CENT. 
BONDS. 

Coupon  Due   1st  July,  1918. 

NOTICE  IS  HEREBY  GIVEN  that  the  above  COUPONS 
will  be  PAID  on  and  after  the  1st  July,  1918  (Saturdays 
excepted),  between  the  hours  of  11  and  3,  at  the  Yokohama  Specie 
Bank,  Ltd.,  where  lists  may  be  obtained. 

Coupons  must  be  left  three  clear  days  for  examination  prior  to 
payment. 

For  the  Yokohama  Specie  Bank,  Ltd.. 

K.  TATSUMI. 
9.  Bishopsgate.  E.C.  2,   17th  June,   1918. 

CITY   OF    YOKOHAMA    FIVE    PER    CENT. 

STERLING  BONDS  FOR  £716,500. 

NOTICE  IS  HEREBY  GIVEN  that  the  COUPONS  due  5th 
July.  1918,  will  be  PAID  on  and  after  that  date  between  the  hours 
of  11  and  3  (Saturdays  excepted),  at  the  YOKOHAMA  SPECIE 
BANK,  LIMITED,  where  lists  may  be  obtained.  Coupons  must 
be  left  thre:  clear  days  for  examination  prior  to  their  payment. 
For  the  Yokohama  Specie  Bank,  Ltd. 

K.  TATSUMI. 
9,  Bishopsgate,  London,  E.C.  2,  21st  June,  1918. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its  Policyholders  in   1917  over 
£9,T00,000 

or  over  £31,000  for  each  Working  Day. 

ALLIANCE  ASSURANCE 

COMPANY,      LIMITED. 

Head  Office:  BARTHOLOMEW  LANE,  LONDON,  E.C.  2. 


ASSETS    EXCEED    £24,000,000. 


Ohmlrman  i 
The    Hon.    N.    CHARLES    ROTHSCHILD. 


The  operations  of  the  Company  embrace  all  branches 
of  Insurance. 

Full  information  respecting 

ESTATE    DUTY   *nd 

CHILDREN'S  EDUCATIONAL  POLICIES 

issued  by  the  Company  may 
be  obtained  on  application 
to  the  Head  Office  as  above, 
•^p  to  any  of  the  Offices  op 
Agencies   of    the    Company. 

O.  MORGAN  OWEN.  General  Manager. 

A  PRACTICAL  PENSION  POLICY 
FOR    WOMEN    WORKERS. 

"After    the    heat   and   turmoil   of   the   day. 
The  sheltered   haven   of  the  peaceful  years." 


A   leaflet   entitled 

"AFTER" 

giving  full  particulars  of  a  new   and   attractive 
scheme  will  be  sent  post  free  on  application  to  the 

NATIONAL    PROVIDENT   INSTITUTION, 

48  GRACECHURCH  STREET.  LONDON.  E.C.  3. 

NOTICE. 

THE 

CANADIAN  NORTHERN  RAILWAY  COMPANY. 

NOTICE    to    Holders  of  £2,000,000   Five    per  Cent 
Secured  Notes  to  Bearer  maturing  12th  August,  1918. 

Holders  of  the  above  Notes  are  given  the  option  of  convening  into 
Notes  of  an  Issue  of  .^2,000,000  Five  per  Cent.  Guaranteed  Secured 
Notes  to  Bearer  taken  at  98j  per  cent.,  receiving  the  balance  of  Ij 
per  cent,  in  cash  as  well  as  the  Coupon  falling  due  on  the  12th 
August  next.  The  New  Notes,  which  will  mature  2nd  August,  1921, 
will  carry  a  full  half-year's  interest  due  2nd  February.  1919,  and 
will  be  Unconditionally  Guaranteed  as  to  Principal  and  Interest 
by  the  eovernment  of  the  Dominion  of  Canada. 

Full  terms  and  conditions  of  conversion  and  the  necessary  forms  can  be  ob- 
tained from  the  undersigned,  and  to  be  effective  the  option  must  be  exeicised 
and  the  Old  Notes  deposited  at  Lloyds  Bank  Limited,  Lombard  Street,  E  C.3, 
l>efore  39th  June,  1918,  next. 

For  CANADIAN  NORTHERN  RAILWAY  COMPANY, 

H.     W.     HARDING,   locjl  Stcrdary. 


^be  5nveetors'  1Rev(ew. 


Vol.  XLl. 

Now  Series. 


-No.  1, 068 


SATURDAY,  JUNE  22,   1918. 


C^tX^:^")  Price  6d. 


PUBLISHER'S    NOTICES. 

XTbe  JnVeStOrS'  IReVleW  is  a  subscription  Joumal,  and  will 
be  delivered  to  subscribers  in  London  by  the  first  post,  or  sent  to 
the  country  and  abroad  by  the  first  mail,  on  Saturday  Morning 
on  the  following  terms : — 
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For  the  Colonies  and  Abroad  the  charge  is 

One  Year  £1  8g.  Od.    Six  Months,  14s.  Od.    Three  Months,  7s.  Od. 

Short  of  Three  months  the  Price  is  6Jd.  per  Copy  Inland,  and 

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Cloth  cases  for  binding  the  half  Yearly  Volumes  price  2s.  6d., 

postage  6d.  extra.     Bound  Volumes  17s.  6d.,  or  18s.  6d.  postfree. 

Cheques  and  P.O.  Drafts  should  be  made  payable  to 

"Investors'  Review," 

Norfolk  House,  Norfolk  Street, 
London,  W.C. 


Telephone  No. : 
Gerrard  9132. 


Telegraphic    Address : 
"  Unveiling,  London." 


The  Editor  cannot  undertake  to  return  rejected  com- 
munications. 

Letters  from  corespondents  must,  In  every  case  be 
authenticated  by  the  name  and  address  of  the  writer. 

The  Editor  desires  It  to  be  understood  that  a  charge  Is 
made  for  the  Insertion  of  reports  under  the  beading  of 
Company  Meetings,  and  he  cannot  accept  responsibility 
for  statements  made  therein. 


ANSWERS  TO  QUERIES. 

One    Reply    to    One    Question  — One    Shilling.      Any 

number  of  questions  may  be  put  and  will  be  answered  at  the  rata 
of  One  Shilling  each.  The  questions  should  be  numbered 
and  a  copy  kept,  as  securitiei  cannot  ba  named  with  comments  in 
the  printed  replies.  Questions  to  be  answered  in  the  current  issue 
should  reach  us  not  later  than  Friday  morning. 

For  a  fee  of  One  Guinea  per  annum  paid  ia  advance,  « 
Key  to  the  previous  week'^  replies  will  be  sent  early  in  the 
following  week. 

Deposits  of  "Query  Money  "  may  be  made  in  advance,  and  wil( 
be  acknowledged  in  the  "Answers"  column.  Notice  c( 
exhaustion  will  also  be  given  there. 

Telegrams  advising  about  new  securities  cost  Half-a- 
Ci*own  each,  plus  cost  of  the  telegram. 

Private  letter*  in  answer  to  inquiries  can  be  bad  if 
desired.  The  minimum  charge  for  such  letters  is  Ten 
Shilling;*,  but  for  this  three  questions  will  be  answered  if 
desired.  For  every  question  beyond  three  replied  to  in  any  one 
letter  the  charge  is  Half-a-Crown  per  question. 

Correspondents  can  have  their  lists  of  investments  overhauled 
and  advised  upon  by  letter  Oin  terms  varying  according  to  the  tin;* 
taken. 

Groups  o''  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


A  Five  Hundred  Million  War 
"  Refresher." 

On  Tuesday  afternoon,  in  the  House  ot  Commons, 
the  Chancellor  of  the  Exchequer,  Mr.  Bonar  Law, 
moved  his  latest  vote  of  credit  in  Committee  of  Supply. 
In  doing-  so  he  told  the  House  and  the  country  what 
he  wanted,  but  said  hardly  a  word  about  how  the  money 
was  spent.  The  previous  vote  of  credit,  amounting 
to  ;^6oo,ooo,ooo,  the  largest  ever  asked  for,  is  nearly 
exhausted,  and  the  new  one  will  only  carry  the  nation 
on  to  the  end  of  August,  for  the  actual  expenditure  is 
nearly  ;^7,ooo,ooo  per  diem.  Nevertheless,  Mr.  Law, 
undeterred,  went  into  sundry  deft  calculations  in  order 
to  exhibit  here  and  there  imaginary  surpluses  on  details. 
Taking  the  spendings  in  the  69  days  up  to  June  8, 
which  have  elapsed  since  the  new  fiscal  year  began,  a 
proportional  estimated  expenditure  extended  over  the 
whole  year  would  be  ;^482,ooo,ooo  for  these  69  days. 
Actually  it  has  been  ;^"472, 500,000,  so  there  is  a  balance 
of  ;^9i50o>ooo  below  the  estimate.  Or,  taking  the  daily 
figure,  the  estimate  for  the  year  was  based  on 
;£,6,986,ooo  average  daily,  outlay,  and  the  actual  average 
has  been  ;^6,848,ooo,  a  saving  of  ;^i 38,000  a  day. 
Think  of  it  ! 

Could  anything  be  more  grotesque  than  this  sort  of 
juggling  with  bales  and  hummocks  of  figures?  Yes, 
there  are  things  more  obviously  grotesque  even  than 
that.  Tbey  may  be  found  in  the  estimates  for  the  four 
fighting  services,  the  Army,  Navy,  Munitions,  and  Air 
Ministry.  The  expenditure  in  these  ever  hungry  de- 
partments is  less  extravagant  by  ;^i5, 300,000,  a  re- 
duction of  ;^i3,5oo,ooo  on  the  Admiralty,  of  ;^6,ooo,ooo 
on  "  munitions,"  and  of  ;^4,oc>o,ooo  on  the  Air  Force 
being  offset  by  a  rise  of  ;^'9,ooo,ooo  in  the  Army.  Was 
it  the  Air  Service  "  saving,"  we  wonder,  that  moved  the 
War  Cabinet — or  was  it  the  Fitzfoodles  and  McToshes 
of  the  old  permanent  staff? — to  devise  and  issue 
orders  for  a  brand  new  uniform  for  it?  It  is  blue,  some- 
thing between  our  navy  blue  and  the  silver  blue  of  the 
French  infantry,  and  it  must  be  donned  forthwith.  Who 
makes  the  profit  by  this  kind  of  thing?  And  how  do 
Cabinet  ornaments  and  members  of  the  military  staff 
contrive  to  find  time  to  occupy  their  minds  with  affairs 
of  the  mere  tailor  or  costumier  amid  the  greatest  crisis 
of  the  war?  .A  re -any  of  them  paid  to  do  ,so?  Who 
bears  the  cost  ?     What  becomes  of  the  discarded  khaki 


unifo.'ms,  many  of  them  brand  new  and  most  expensive, 
now  ordered  to  be  discarded. 

Somebody  is  making  money  here,  you  may  be  sure, 
but  the  department  has  "saved  ;^4,ooo,ooo  !  "  Per- 
haps we  shall  get  partial  answers  to  these  questions  in  a 
proximate  list  of  so-called  "honours."  A  peerage  or 
baronetcy  will  surely,  according  to  the  Georgian  habits 
in  political  strategy  and  democracy-betrayal  a  la  the  first 
Napoleon,  fall  to  the  lot  of  the  men  who  stuff  their 
wallets  most  systematically  at  the  expense  of  the  tax- 
payer. "The  taxpayer?  What  concern  can  it  be  of 
his?     We  can  always  borrow,"  says  the  Chancellor. 

Mr.  Law  had  to  confess  that  there  has  been  an  in- 
crease of  ;^'9,ooo,ooo  in  the  Army  expenditure,  but 
hastened  to  explain  that  ;^3, 000,000  of  it  was  "  not 
really  an  increase."  It  was  merely  a  feat  of  bookkeeping, 
and  represented  "  an  excess  beyond  the  estimate,"  paid 
by  the  Army  for  supplies  given  to  our  Dominion  forces. 
And  so  by  trivial,  peddling  byways  the  happy  Chancel- 
lor rambled  on  until  he  came  to  telling  us,  by  way  of 
round  off,  how  our  advances  to  our  Allies  had  taken 
to  dwindling.  To  the  end  of  last  fiscal  year  the  total 
they  owed  us  was  ;^i, 332,000,000.  Between  April  i  and 
June  8  of  the  current  year  only  ;^38,ooo,ooo  more  has 
been  advanced,  or  at  the  rate  of  about  ;^i8o,ooo,ooo  a 
year,  and  make.;  the  total  now  ;^  1,3 70,000,000.  For 
the  Dominions  alone  the  amount  at  the  end  of  the  Ex- 
chequer year  was  ;^ig4,ooo,ooo,  and  since  then 
;^i2, 000,000  has  been  advanced,  so  that  they  novv 
owe  us  ;^2o6,ooo,ooo.  But  it  is  all  on  a  diminishing 
scale.     How  cheering  ! 

Less  has  been  spent  upon  the  fighting  forces  of 
Dominions  and  Allies,  but  ;^2 1,000, 000  more  than  esti- 
mated has  gone  to  pay  for  foodstuffs,  and  that  money 
it  is  claimed  will  all  come  back.  It  is  represented  very 
largely  by  purchases  of  commodities  like  bacon,  canned 
meats,  and,  to  some  extent,  of  wheat,  and  as  the  stuff 
is  resold  the  Treasury  will  recoup  itself.  Nearly  the 
whole  of  the  returns  will  come  into  the  accounts  of  the 
current  year,  and  ruling  that  bulge  off,  the  actual  de- 
crease on  the  estimates,  for  the  period  elapsed  of  the 
current  year,  is  no  less  than  ;^30, 000,000,  equivalent 
to  ;^434,ooo  per  day.  Prodigious  !  You  understand 
it  all,  of  course— as  fully,  say,  as  the  bookkeepers  and 
Ministers  do  in  the  various  offices. 

These  itemised  fragments  of  the  accounts,  which 
re.nlly  told  the  House  nothing  at  all  worth  a  doit,  suit- 


59^ 


XTbe  Jnveetors'  IRevtew. 


June  22,  1918. 


ably  led  up  to  a  statement  of  our  total  war  obligations. 
We  gave  the  figures  of  each  year's  addition  to  the  pile 
of  debt  last  week.  Up  to  the  end  of  last  year  their 
aggregate  was  ;^6,242,ooo,ooo.  Add  the 
;^i, 100,000,000  voted  in  the  current  year  thus  far,  and 
the  total  becomes  ;^7,342,ooo,ooo,  with  much  more  to 
follow.  "The  Committee  will  agree  with  me," 
hazarded  Mr.  Law,  "  in  thinking  that  it  is  large 
enough." 

It  will.     And  that  was  all. 

The  Chancellor  then  drifted  away  to  a  review  of  the 
position  on  various  military  fronts,  especially  the 
Western  and  Italian  fronts.  He  might  have  compiled 
it  from  the  essays  of  military  critics  in  the  daily  news- 
papers, or  even — most  of  it — from  the  By-the-Way 
War  Notes  of  The  Investors'  Review.  There  was 
nothing  fresh  in  it,  nothing  inspiring,  and  although  it 
was  couched  in  a  muffled  tone  of  confidence,  its  effect 
was  damping. 

Naturally  the  critics  who  followed  Mr.  Law  had 
much  to  complain  of.  Mr.  McKenna,  for  example, 
was  inquisitive  about  our  "  miscellaneous  "  expendi- 
ture, and  well  he  might  be,  for  it  grows  a  bulbous 
heap.  He  was  also  emphatic  about  the  enormous 
figure  of  daily  expenditure,  which  is  treated  so  lightly 
by  our  wonderful  Government.  With  a  total  of 
;;^7,75o,ooo  a  day,  Mr.  McKenna  insisted,  "  we  had 
reached  a  point  at  which  the  power  of  the  nation  to 
produce  more  had  become  almost  exhausted."  It  be- 
came more  than  ever  of  vital  importance  that  money 
should  not  be  wasted.  "  Of  all  services  in  the  country 
the  public  service  ought  to  be  the  first  to  insist  that 
there  was  no  wasteful  expenditure."  If  five  or  ten 
millions  be  wasted  the  public  may  say,  "it  is  little 
more  than  one  day's  expenditure^"  "but  let  them 
consider  what  ;£"5,ooo,ooo  wasted  meant  in  labour. 
Putting  the  average  earnings  at  £4  a  week,  or  ;^2oo 
a  year,  it  meant  a  waste  of  215,000  men's  work  for  a 
year."  That  is  a  way  of  putting  it  with  which  readers 
of  this  Review  are  familiar,  but  even  it  fails  to  strike 
home  to  the  public  mind,  mazed  as  it  is  by  the  huge- 
ness of  the  figures,  and  the  dancing-dervish  whirl  of 
offsets  and  explanations. 

^  Other  speakers  followed,  and  had  pertinent  observa- 
tions to  make.  Sir  Joseph  Walton  wanted  to  know 
how  our  after-war  requirements  of  ;^8oo,ooo,ooo  to 
;^900,ooo,ooo  a  year  were  going  to  be  met,  also  what 
steps  had  been  taken  to  cut  down  the  large  profits  on 
contracts,  and^  seeing  how  completely  the  exposures 
of  the  Auditor-General  are  ignored  by  the  Govern- 
ment, the  questions  were  to  the  point.  M,-.  Roch  and 
Brigadier-General  Croft  also  had  things  to  sa>  which 
even  our  "War  Cabinet"  might  heed,  were  it  ever 
so  little,  because  a  storm  is  gathering  which  will  burst 
one  of  these  days  with  disastrous  results  for  most  of 
us,  for  it  not  least. 

The  weightiest  speech  of  the  evening  was  Mr. 
Asquith's.  It  was  dignified,  restrained,  patriotic,  and 
impressive — the  kind  of  speech  which  sinks  into  the 
public  mind  and  is  remembered.  Without  abating  one 
jot  of  his  faith  in  the  ultimate  triumph  of  the  Allies, 
the  late  Prime  Minister  none  the  less  confessed  his 
anxieties  and  pressed  home  facts  which  the  Govern- 
ment either  slurs  over  or  ignores.  Also  he  manfully 
stood  up  for  Russia.  "  I,  for  one,  gm  not  at  all  dis- 
posed to  wipe  Russia  off  the  slate  and  treat  her  as 
having  become  a  negative  and  non-existent  factor." 
The  stew-in-your-own-juice  attitude  is  not  the  right  one 
at  all.  It  represented  a  policy  of  fatal  short-sighted- 
ness, and  he  urged  that  every  opportunity  should  be 
taken  to  help  Russia  in  a  spirit  of  unselfishness,  so  that 
we  may  build  up  a  friendship  and  an  intimate  alliance 
helpful  to  both  countries,  but  above  all  to  Russia. 

There  is  the  true  ideal.  And,  by  the  way,  Dr.  Hag- 
berg  Wright,  the  well-known  librarian  at  the  London 
Library,  in  a  letter  printed  in  the  Times  of  the  same 
day,  opportunely  points  out  some  of  the  ways,  in  which 
we  can  help  Russia  now  without  at  once  sending  her 
military  forces.  "There  is  vital  need  of  action — 
prompt,  considered,  and  sustained,"  he  says.  "  We 
must  devise  new  methods  to  suit  new  conditions.  The 
personnel  of  our   future  Embassies  to  Russia  must  be 


familiar  with  Russian  life  and  thought,  must  be  capable 
of  getting  in  touch  with  all  classes  of  the  population. 
.Siill  more  essential  is  it  that  the  British  democracy 
should  give  practical  proof  of  their  sympathy  and 
friendship — not  in  mere  words,  but  in  deeds  incapable 
of  misconstruction.  The  Russian  people  are  in  sore 
straits.  Universal  famine  is  impending,  and  they  lack 
many  of  the  .sheer  necessities  of  civilised  existence; 
therefore  the  distribution  of  such  necessaries  as  boots, 
clothing,  farm  implements,  and  tools  at  cost  price  would 
be  an  act  of  friendship  far-reaching  in  result,  if  care 
were  taken  to  avoid  all  suspicion  of  commerciuj  enter- 
prise. The  power  of  genuine  sympathy  is  illimitable." 
That  points  the  right  path  to  follow,  and  this  is  the 
kind  of  help  that  Mr.  Asquith  pled  for  in  a  sympa- 
thetic House,  whose  leaders  in  office  had  forgotten.       • 

As  a  result  of  the  debate,  and  of  the  demand  from  all 
sides  for  more  information  about  the  war — what  is 
going  on,  for  example,  in  the  various  Eastern  seats  of 
conflict,  about  which,  Mr.  Asquith  pertinently  re- 
marked, never  a  word  was  uttered  by  the  Govern- 
ment— a  sort  of  promise  seems  to  have  been  made  that 
the  Government  may  open  the  shutter.'?  and  let  in  a 
little  light.  Take  it  all  in  all,  however,  it  was  a  de- 
pressing rehearsal,  and  the  sloppy  character  of  our 
Government  is  vividly  illustrated  in  the  incident  of  the 
brand  new  uniform  for  our  .Air  Service.  Will  the 
change  of  cloth  and  colour  save  many  lives? 


The    Land    and  the  Diseases  Thereof. 

A  letter  in  the  Westminster  Gazette  of  the  14th  inst. 
once  more  calls  attention  to  the  habits  prevailing  with 
regard  to  the  treatment  of  land  in  high  quarters.  The 
writer,  Mr.  Arthur  C.  Dowding,  draws  attention  to  the 
"  scandal,"  as  he  calls  it,  of  the  eviction  brutality  now 
going  on  all  over  the  country,  and  by  which  farmers  are 
being  turned  out  of  their  holdings.  A  great  gamble 
has  developed  in  real  estate,  and,  as  this  writer  says, 
the  high  prices  now  being  realised  for  farms  are  solely 
due  to  the  fact  that  landlords  can  evict  their  tenants  at 
twelve,  and  sometimes  at  six,  months'  notice,  and  ofTer 
a  purchaser  vacant  possession.  This  process  of  evicting 
tenants  at  will,  which  most  of  the  English  farmers  are, 
goes  on  rampageously,  while  the  oiiicials  of  the  Board 
of  Agriculture  and  other  smug  individuals  keep  preach- 
ing to  the  nation  to  do  its  duty  and  cultivate  the  land, 
so  as  to  increase  the  yield  of  the  crops,  bribing  them 
the  while  and  supplying  them  the  while  with  labour  of 
sorts.  Doubtless  Mr.  Prothero  knows  all  about  it,  but 
he  is  only  a  man  of  his  surroundings  and  his  time.  He 
was  the  agent  of  the  Duke  of  Bedford,  and  cannot  help 
looking  at  the  relations  of  landlord  and  tenant  from  the 
[;mdowner's  standpoint.  And  not  only  is  the  eminent 
President  of  the  Board  of  Agriculture  obsessed  by  this 
attitude,  the  whole  nation  may  be  said  to  be  so.  We 
are  not  free,  in  any  sense,  when  dealing  with  the  land 
or  questions  relating  to  it — not  free  in  our  opinions, 
not  free  to  take  any  course  that  will  tend  towards  jus- 
tice between  man  and  his  fellow,  least  of  all  towards 
the  man  who  is  beneath. 

Some  noise  has  been  made  in  the  newspapers  and 
elsewhere  over  that  seizure  of  600  acres  at  Chippenham 
for  military  purposes.  The  growing  crops  are  being 
destroyed  upon  it,  we  are  assured,  and  much  strong 
language  is  being  used  against  the  Government  for 
allowing  a  crime  so  glaringly  in  contrast  with  its 
rhetoric  to  be  committed.  But  no  one  attempts  to  do 
anything  to  stop  this  sort  of  tyranny ;  nor  will  the 
Government  move  a  finger  to  allow  the  blame  to  be 
put  upon  the  right  people  or  the  crime  to  be  atoned 
for.  You  see,  it  is  not  the  civil  servant  who  does  these 
things,  but  our  military  despots,  they  and  their  new 
allies,  and  we  cannot  expKJct  the  mere  professional 
soldier  to  give  any  consideration  to  popular  rights  or 
prejudices,  or  to  mere  sentiments,  when  in  control, 
still  less  to  look  at  things  from  the  mere  human  com- 
mon-sense business  fxiint  of  view,  so  that  no  co-ordina- 
tion of  purpose — not  to  speak  of  effort — is  ever  to  be 
looked  for  between  the  military  leaders  and  the  enor- 
mous multitudes  of  new  givil  employees  when  dealing 


June  22,  1918. 


^be  Jnveetore'  IReview. 


593 


with  subjects  that  concern  the  nation's  well-being.  But 
the  Government  should  at  least  understand  that  the 
people  are  thinking  hard  about  these  things  and  taking 
note  of  them.  It  should  also  remember  that  the  hunger 
for  land  has  increased  since  this  war  began  to  an  ex- 
tent that  the  landlord  class  appears  to  have  no  concep- 
tion of  whatever,  except  as  affording  them  a  glorious 
chance  to  make  a  profit  by  sales. 

If  our  Army  lives  to  come  back,  it  is  coming  back 
to  lay  hold  of  the  land,  of  that  the  present  legal  owners 
of  our  soil  may  be  perfectly  sure.  Perhaps  it  is  because 
some  among  them  suspect  this  demand  to  be  coming 
upon  them  that  they  are  in  such  haste  to  dispose  of 
their  estates,  not  as  the  wise  and  conscientious  landlord 
would  do  to  the  present  tenants  at  moderate  prices,  but 
to  the  highest  bidder,  to  the  mere  speculator  who,  in 
order  to  enhance  the  profit  he  sets  out  to  make  on  what 
he  has  bought,  turns  th'te  estate  upside  down,  evicts 
tenants  who  may  have  been  on  the  land  for  generations, 
and  clears  everything  away  so  that  he  may  be  able  to 
offer  the  highest  temptations  on  resale.  To  serve  notice 
to  quit  may  stimulate  the  tenant  to  offer  a  ruining  price 
so  as  to  escape  the  threatened  fate.  .Vnd  failing  him, 
there  is  always  the  amateur  farmer  who  is  ever  the 
greatest  dupe  in  this  kind  of  business.  The  town  dweller 
is  seized  with  a  desire  to  become  a  landowner  and  farmer 
so  as  to  enjoy  the  sweets  of  country  life.  He  has  made 
money  in  trade,  and  resolves  to  put  it  into  land. 

So  he  buys  a  farm  at  any  price,  no  matter  how  exces- 
sive, that  being  the  only  way  in  which  he  can  gratify 
his  desires.  In  England  recurring  outbursts  of  land 
hunger  of  this  kind  lead  to  speculative  outbidding  for 
farms  just  as  in  Scotland  crazes  to  lease  farms  break 
out  among  shopkeepers.  And  every  now  and  again  the 
eviction  of  old  and  experienced  farmers  ensues  in  order 
to  make  room  for  the  amateur  who,  in  Scotland, 
generally  ruins  himself  before  his  lease  is  out.  The 
result  to  many  people  of  the  present  land  boom  in  farm 
buying  in  England  will  be  ruin,  and  then  Ihose  who 
want  farms  may  be  able  to  get  them  at  a  reasonable 
price.  Or  whole  slices  of  counties  may  again  be  swept 
into  the  grip  of  some  new  speculator  who  will  buy  up 
estates  cheap  in  bits  as  the  tenants  become  exhausted, 
and,  after  waiting  a  little,  will  again  repeat  the  unload- 
ing process. 

It  is  a  sordid  business,  rooted  in  heartless  injustice  of 
the  true  Junker  stamp,  and  if  this  war  does  not  lead 
to  a  settling. of  accounts  between  the  landlord  class  and 
the  people,  then,  we  again  say,  it  was  hardly  worth 
lighting.  We  might  just  as  well  have  submitted  to  the 
Prussian  drill-sergeant  and  his  Junker  overlord,  who 
could  not  have  been  less  humane  towards  the  people  his 
hold  over  the  land  made  him  master  of  than  the  average 
of  English  landlords  have  been  for  many  generations. 
"In   the  lump  "  they  are  bad. 

One  has  but  to  remember  the  history  of  this  country 
during  the  last  two  hundred  years,  to  go  no  further 
back,  to  realise  with  what  ruthlessness  and  untiring 
energy  the  few  who,  buttressed  in  feudalism,  controlled 


law-making  in  England,  were  able  to  rob  the  people  and 
to  drive  them  into  the  slums  of  towns  there  to  degenerate 
and'  wither.  Very  early  in  the  eighteenth  century,  says 
Mr.  A.  H.  Dyke  Acland,  an  experienced  authority,  in 
his  introduction  to  the  report  of  the  Land  Inquiry  Com- 
mittee, published  the  year  before  the  war  broke  out, 
there  began  a  great  series  of  private  Acts  of  enclosure 
of  which  4,000  in  all,  covering  some  7,000,000  acres, 
were  passed  before  the  General  Enclosure  Act  of  1845. 
"  During  the  same  period,  he  adds,  it  is  probable  that 
about  the  same  area  was  enclosed  without  application  to 
Parliament,"  that  is  to  say,  was  filched  from  the  people 
without  even  a  form  of  legality.  In  other  words, 
landowners,  the  great  territorial  magnates  of  this 
country,  the  few  privileged  ones  created  by  favour 
of  kings,  enriched  through  the  spoliation  of  monas- 
teries and  Church  lands,  deprived  in  cold  selfishness  the 
slender  population  of  England  of  some  14,000,000  acres 
of  soil  within  the  century  which  ended  in  1845.  ■^"'^ 
the  process  has  continued  ever  since,  often  still  without 
leave  given,  down  to  the  present  day.  By  fencing  in 
the  margins  of  broad  highways,  by  shutting  the  public 
out  of  rights  of  way,  by  the  gradual  assertion  of  mano- 
rial or  direct  irresponsible  proprietary  "  rights  "  over 
wastes  that  no  man  owns,  in  a  hundred'  ways  the  land- 
lord asserts  his  dominance  until  there  is  no  room  for  the 
landless,  no  chance  of  pasturing  the  poor  man's  cow 
by  the  wayside.  But  then  there  is  no  poor  man's  cow, 
the  feudal  proprietors  having  taken  good  care  that  no 
serf  of  theirs  shall  have  the  means  to  keep  one. 

And  the  result  is  that  the  dwindling  population  of 
our  rural  districts  consists  of  two  classes  of  indi- 
viduals :  the  one  man  or  the  few  who  own  the  soil  and 
all  that  is  thereon  or  therein,  and  the  humble  many  who 
either  hire  the  right  to  till  that  soil  or  who  actually 
cultivate  it  for  wages  without  having  any  interest  what- 
soever beyond  the  wage  in  the  results  of  their  labour. 
This  was  not  so  down  to  the  beginning  of  the  eighteenth 
century,  the  same  authority,  Mr.  Acland,  tells  us ;  for 
at  that  date  there  were  a  great  number  of  small  free- 
holders and  small  copyholders,  and  of  the  land  in  the 
possession  of  the  greater  landlords,  by  far  the  larger 
portion  was  let  to  small  tenants.  All  that  has  gone, 
and,  under  the  stimulus  of  modern  industrialism,  the 
country  districts  have  been  depopulated  and  the  few 
remaining  inhabitants  thereof  have  gradually  become 
degraded.  Deprived  of  outlet,  of  hope  in  life,  they 
shrivel  in  body  and  mind. 

"  But  look  what  the  Government  has  done  to 
remedy  all  this,"  we  will  be  told.  It  has  fixed  a 
minimum  wage  for  the  labourer,  it  is  looking  after 
the  housing  of  him— or  talking  about  it,  though  penni- 
less. After  a  time  it  may  even  summon  courage  to 
guarantee  to  him  a  patch  of  allotment,  a  rood  or  tw-o, 
perhaps  half  an  acre — who  knows  to  what  heights  its 
generosity  may  soar.  So ;  but  does  that  touch  the  real 
grievance?  Does  that  open  the  land  to  the  use  of 
people,  give  them  any  chance  of  satisfying  their  crav- 
ing to  "own  a  bit  of  land  "  of  their  very  own?      Or 


TD. 


STANDARD  BANK  OF  SOUTH  AFRICA,  L 

Bankers  to  the  Government  of  the  Unioi  of  South  Africa  in  Cape  Province;  t^  the  Imperial  Government  in  South  Africa  and  to  the  Administration 

of  Rhodesia.  --.,».«.    ^^.^^.^^ 

Subscribed  Capital    ...   £6,194,100     I     Reserve  Fund     £2,000,000 

Paid-up  Capital £1,548,525     |     Uncalled  Capital         ...    £4,645,575 


WM.  REIERSON  ARBUTHNOT,  Fsq. 
SIR  DAVID  M.  BARBOUR,  K.C.S.I.,  K.C.M.G 
ROBERT  E.  DICKINSON,  Esq. 


Rt.  Hon.  lord  SYDENHAM,  G.C.S.I., 

G.C.M.G.,  G.C.I.E.,  G.B.E. 
H.  L.  M.  TRITTON,  Esq. 


Board      of      Directors. 

JAMES  FAIKBAIRN  FINLAY,  Esq.,  C.S.I. 
HORACE  PEEL,  Esq. 
WILLIAM  SMART,  Esq. 

Head  OfficB!   lO  CLEMENTS  LANE,  LOMBARD  STREET,  LONDON,  E.C.  4, 

New  York  A|<ency:— Ba,  WALL  STREET,    Over  250  Branches  and  Agencies  in  South  and  East  Africa- 

TRAVELLER'S  LETTERS  OF  CREDIT  issued  available  in  all  parts 
of  the  world. 


BANKING  BUSINESS  OF   EVERY  DESCRIPTION  transacted  at 

all  Branches  and  Agencies. 
CURRENT  ACCOUNTS  opened  on  the  usilal  terms,  and  DEPOSITS 

RECEIVED  for  fixed  periods  at  rates  which  may  be  ascertained  on 

application. 
SAVINGS  BANK  ACCOUNTS  opened  on  terms,  particulars  of  which 

may  be  obtained  at  Branches. 
BILLS  NEGOTIATED  and  COLLECTED. 

DRAFTS  issued,  MAIL  and  TELEGRAPHIC  REMITTANCES  ma  e. 
LETTERS  OF  CREDIT  and  COMMERCIAL  CREDITS  esiablished. 


The  officers  of  the  Batik  are  bound  not  to  disclose  the  tran^iutious  of  its  customers. 


PURCHASE  AND  SALE  of  Slocks  and  Shares  effected 

DIVIDENDS.  ANNUITIES.  &c.,  received  and  COUPONS  COL- 
LECTED. ,      ,  ^        ...  A 

STRONG  ROOMS  provided  for  the  safe  custody  of  Securities  ana 
Valuables  of  Customers.  , 

ASSAY  DEPARTMENT- Gold,  etc.,  and  all  Mineral  Ores  assayed 
and  realised. 

EXECUTOR  AND  TRUSTEE  Business  undertaken. 


FRANCIS  SHIPTON,  London  Manager. 


594 


XLbc  Bmc^toKQ'  Ik^vicvff. 


JL'NE  22,    1918. 


does  it  in  tiie  slightest  degree  curtail  the  power  of  the 
landlord  to  turn  them  all  off  his  land  if  a  "profit" 
tempts  him  to  do  so?  Or  will  he  be  forbidden  to  fill 
his  woods  with  destructive  ground  vermrn,  to  waste 
his  rack  rents  on  pheasant  breeding,  or  otherwise  to 
take  whatever  course  he  fancies  to  raise  rents,  to  evict 
tenants,  and  so  on  ?    It  does  not. 

The  Government  and  Parliament  and  the  Press  always 
shrink  from  squarely  looking  the  land  question  in  the 
face,  and  if  they  go  on  in  this  cowardly  fashion,  the 
probability  is  that  the  people  will  intervene  and  settle 
the  land  question  for  themselves  in  summary  fashion — 
even  as  fhey  partially  did  in  France  as  a  result  of  the 
Revolution  of  1789. 

You  see,  we  may  be  driven  to  take  drastic  measures 
by  our  enormous  burdens.  It  cannot  be  too  often 
dinned  into  the  ears  of  those  whose  privileged  position 
is  threatened,  or  of  those  who  are  attempting  to  rule 
us  by  recurring  spates  of  sentimental  oratory,  that  the 
mere  weight  of  our  debts  must  force  the  nation  to 
knock  down  the  old  fabric  of  its  civilisation  and  com- 
mence building  up  again  a  new  one  from  the  very 
foundation — to  do  that  or  sink  back  into  savagery. 
And  the  foundation  of  everything  is  the  land.  The 
'and  must  therefore  be  in  the  hands  of  the  people  to 
mould  it  to  their  wants,  to  be  the  one  solid  basis  for 
all  other  developments  and  outgrowths.  Unless  the 
land  is  delivered  from  the  blight  of  the  Junker  and  his 
"dead  hand,"  of  the  man  who  has  created  for  him- 
self what  he  calls  "  rights,"  and  who  enjoys  privi- 
leges for  which  he  is  not  accountable  to  his  fellows, 
then  It  cannot  be  cultivated  in  a  way  that  will  yield 
the  produce  necessary  to  enable  us  to  carry  our  debt 
obligations  and  provide  for  their  rapid  liquidation. 

Biit  although  this  lies  at  the  very  core  of  any  recon- 
struction, and  although,  without  this,  whatever  civili- 
sation may  be  evolved  in  place  of  the  one  now  being 
destroyed  by  this  war  will  be  just  as  fuH  of  hypocrisy 
and  make-believe  as  the  one  now  disappearing,  if  the 
product  of  the  land  is  to  be  doubled  or  trebled  or  quad- 
rupled, as  it  can  be,  even  that  will  be  of  no  avail  un- 
less we  have  markets  in  which  we  can  dispose  of  the 
surplus,  and  these  markets  must  be  created  by  a  re- 
shaping of  our  other  industries  on  a  footing  which  en- 
sures that  each,  individual  engaged  will  have  his  share 
in  the  benefits  thereof.  In  that  way  consumers  able  to 
pay  would  be  evolved,  and,  extending  the  view  still 
further,  the  surplus  of  one  country  would  become  ex- 
changeable for  the  surplus  of  other  countries,  and  a 
great  international  trade  rise  up  again  to  a  magnitude 
better  sustained  and  founded  than  anything  that  Ger- 
man or  American  Protectionism,  or  British  stimulus  by 
Stock  Exchange  finance,  could  ever  give.  But  the  land 
is  the  first  thing. 

Sometimes  in  thinking  over  things  to  come  we  essay 
to  construct  something  of  an  Utopia,  and  according  to 
our  conception  the  congestion  of  population  in  our 
cities,  with  the  resulting  slums  and  moral  and  physical 
degradation,  should  not  be  necessary  in  the  new  world 
that  is  to  be  built  up  out'of  the  ruins  of  the  old.  If  the 
land  were  completely  free,  if  the  landowner  became 
one  with  his  fellow-men,  and  took  the  lead  in  develop- 
ing and  co-ordinating,  each  in  his  sphere,  the  local 
efforts,  and  if  the  engineering  skill  available  were  let 
loose  upon  it,  then  there  is  surely  no  insurmountable 
reason  why  our  other  industries  should  not  be  dispersed 
over  the  land  with  motive-power  from  machinery  driven 
by  electricity  generated  at  centres  where  water-power 
was  available.  Then  all  our  workmen  in  fields,  factories, 
and  workshops  might  be  endowed  with  suflficient  land 
to  supply  them  with  worthy  occupation  in  their  leisure 
hours  and  with  produce  for  the  use  of  their  families  or 
for  sale.  It  is  already  thus  in  Switzerland,  and  here  and 
I  there  in  France.  Why  could  it  not  come  to  be  the 
order  of  life  in  England  likewise?  The  subject  is  one 
of  absorbing  attractiveness  to  the  altruistic  mind.  But 
it  is_  not  to_  be  brought  into  existence  by  indulging  in 
sentimentalism,  nor  yet  by  prophesying  all  manner  of 
■wonderful  things  to  be  done  by  "  the  State  "  after  the 
war  closes.  It  can  only  come  by  hard  thinking  and 
iiard  work,  above  all  by  a  resolute  spin't  of  self^ienial 


and  self-sacrifice.  The  l>cginning  of  the  attainment  of 
any  such  ideal  can  become  pos.sible  only  when  the 
charity  by  cheque  or  "  fair  "  is  replaced  by  active,  un- 
selfish, systematic  effort. 

The  civilisation  now  dying  which  we  pride  ourselves 
upon  is  in  some  respects  attractive  enough,  but  it  is 
clothed  in  hypocrisy  and  in  essence  purely  selfish. 
What  is  the  display  of  wealth  except  self-gratifica- 
tion? Why  arc  classes  in  the  community  now  sepa- 
rated as  effectually  as  if  each  lived  behind  a  barbed 
wire  fence?  Essentially  it  is  because  selfishness  lies 
at  the  root  of  tRe  progress  made,  and  the  highest  mani- 
festations of  civilisation  are  concerned  with  the  asser- 
tion of  the  superiority  of  one  class  over  another. 
"  Progress  "  is  the  climbing  up  of  the  one  class  on  the 
shoulders  of  the  others.  We  must  change  all  that  and 
begin  anew. 

Passing   Events 

Last  week's  revenue  was  larger  a  good  deal  than 
usual  at  this  period  of  the  financial  year,  its  total  being 
^19,346,000,  but  there  was  no  increase  in  the  ordinary 
sources  of  income,  and  only  excess  profits  duty  and 
"miscellaneous"  contributed  to  swell  out  the  aggre- 
gate. Income-tax,  for  instance,  gave  only  ;^3i7^coo, 
but  excess  profits  duty  produced  ;^6, 63 1,000,  and  miscel- 
laneous ^8,003,000.  As  a  source  of  income  the  excess 
profits  tax  is  sound  enough,  but  we  should  like  to 
know  what  "  miscellaneous  "  is  made  up  of,  for  the  total 
received  under  that  head  has  grown  to/  formidable 
proportions  since  the  beginning  of  the  war.  Is  it  the 
case  that  interest  is  charged  to  our  Dominions  for  the 
advances,  and  that  this  interest  is  credited  in  our  own 
revenue  accounts,  although  never  received?  That  point 
ought  to  be  cleared  up.  Expenditure  was  compara- 
tively modest  last  week,  that  is  to  say,  only 
;^48,978,ooo,  or  ;^6,854,ooo  a  day.  On  supply  services 
alone  it  was  ;^"43,650,ooo,  or  ;^6, 236,000  a  day,  so  the 
Government  is  perhaps  trying  to  economise,  at  least 
until  the  Vote  of  Credit  is  well  out  of  the  way,  but  it 
ij  forced  more  and  more  to  lean  on  Treasury  bills,  the 
total  of  which  increased  last  week  by  ;^32, 446,000, 
and  now  stands  at  ;^i,05i,772,ooo.  Probably  the 
Government  is  able  to  sell  these  bills  more  readily  now 
that  deposit  rates  have  been  lowered,  and  com- 
petition with  the  Treasury  reduced,  and  it 
took  advantage  of  the  greater  demand  for  bills 
to  raise  enough  money  to  enable  it  to  pay  off 
;^29,ooo,ooo  of  the  temporary  ways  and  means  ad- 
vances, i.e.,  converted  that  amount  of  them  into  bills. 
These  advances,  however,  still  amount  to  ;^i35,028,440, 
and  one  form  of  recurring  floating  debt  is  merely  substi- 
tuted for  another.  Besides  these  purely  finance 
transactions  the  Government  received  ;,£J'i6, 528,000, 
proceeds  of  War  Bond  sales,  and  ;£ri6,386,ooo  from 
America  entered  as  "other"  war  debt,  as  well  as 
;^i,6oo,ooo,  proceeds  of  War  Savings  Certificates 
sold.  The  floating  loan  or  ways  and  means  advances 
are  shown  as  ;^30,ooo,ooo  repaid  and  ;^i,ooo,ooo  re- 
borrowed. But  with  all  the  help  the  total  expenditure 
of  ;^i39.o75.ooo  was  last  week  ^^3, 768,000  short  of 
the  requirements,  consequently  the  Exchequer  balances 
were  reduced  by  that  amount  to  ^^  12, 08 1,000.  A  year 
ago  the  total  was  ;^25, 313,000.  It  is  delicate  skating 
on  thinning  ice. 

Presumably  the  great  dividend-capturing  "  stunt  " 
of  the  Treasury  and  its  advertising  agents  is  now 
about  over.  We  cannot  be  sure,  because  advertise- 
ments of  the  most  wonderful  ingenuity  continue  to 
jump  at  one  out  of  the  pages  of  the  newspapers.  Still, 
it  is  reasonable  to  assume  that  those  who  were 
patriotic  enough  to  endeavour  to  meet  the  Treasury 
petition  and  re-invest  their  dividend  money,  all  of  it, 
or  as  much  as  they  could  spare,  have  already  carried 
out  their  purpose.  So  we  looked  at  the  returns  of 
sales  of  National  War  Bonds,  Bank  of  England  issue, 
for  the  past  three  weeks  ended  June  15  and  compared 
them  with  those  of  the  three  preceding  weeks  ended 
May  25.  In  round  figures  this  was  the  result :  During 
the  three  weeks  ended  June  15,  nearly  ;^7 1,000, 000  of 


JUNli  22,    I918. 


XTbe  5nve8tov8'  Ikevicw* 


595 


National  War  Bonds  (Bank  of  England  issue)  was 
applied  for.  In  the  three  weeks  ended  May  25,  the 
applications  were  under  7^30,000,000.  Therefore  it 
would  seem  that  nearly  ;;^'4 1,000,000  out  of  the 
;£r50, 000,000  odd  of  dividend  money  paid  out  to  the 
stockholders  has  been  reinvested.  In  the  circum- 
stances that  must  be  regarded  as  a  favourable  result, 
although  the  real  farts  probably  do  not  quite  corre- 
spond to  this  rough  contrast.  Many  people  like  Lord 
Invcrclyde  invested  more  than  the  amount  of  their  divi- 
dends, others  could  only  hand  back  some  portion 
thereof,  and  we  fear  a  goodly  number  were  unable  to 
return  any  of  their  dividend  money.  They  had  other 
and  more  immediately  pressing  demands  to  provide 
for — their  income-tax,  for  instance,  the  second  half  of 
which  becomes  payable  on  July  i.  But  was  it  worth 
while  to  make  the  atlempt?  Yes,  perhaps  it  was,  and 
the  percentage  of  cost  presented  by  advertisements  and 
advertising  agents'  commission  may  not  be  formidable 
on  the  amount  of  money  surrendered.  It  is  costly  re- 
borrowing, however,  and  (he  dividend  money  received 
does  not  help  the  Government  much.  It  needs  fresh 
money,  and  needs  it  cheap  Other  categories  of  the 
mounting  debt  may  have  helped  a  little,  although  there 
is  no  distinct  evidence  that  they  have  in  the  returns. 
Only  the  figures  for  the  Post  Office  issue  of  National 
War  Bonds  and  for  the  Savings  Certificates  are  as 
usual  a  week  behind  those  of  the  Bank  of  England 
issue,  that  is  to  say,  they  bring  us  down  but  to  the  8th 
instant,  and  for  the  week  then  ended  29,700  applica- 
tions for  War  Bonds  were  received  at  the  Post  Office, 
or  10,000  more  than  in  the  preceding  week.  This 
meant  that  the  money  subscribed  was  ;^203,40o  larger 
at  ;^688,ooo.  Therefore,  the  total  number  of  applica- 
tions was  brought  up  to  1,220,294,  bringing  in 
^30,388,000,  and  the  number  of  War  Savings  Certifi- 
cates sold  in  the  same  week  was  2,340,019,  bringing 
up  the  aggregate  to  204,267,000,  which  means 
;^,"i58,307,ooo  in  cash.  To  complete  the  record  we  add 
the  totals  for  the  Bank  of  England  issue  of  National 
War  Bonds.  There  were  21,234  buyers  in  the  week 
ended  the  15th  instant,  or  13,978  fewer  than  in  the  pre- 
ceding week,  and  the  money  subscribed  was 
^11,306,000  less  at  ;^2i, 516,000.  Adding  these 
figures  to  the  previous  totals  we  get  662,043  applica- 
tions for  ;^779, 779,000  as  product  of  this  emission, 
and,  adding  the  other  two,  reach  a  grand  total  of 
^968,474,000,  less  than  half  the  sum  required. 


boring,  uhen  first  the  project  look  shape.  It  will  be 
easier  to  construct  and  much  easier  to  operate  than 
seemed  possible  in  the  days  when  Sir  Edward  Watkin 
worked  strenuously  to  make  it  a  dependent  of  the 
South-Eastern  Railway.  When  actually  made  it  will 
be  something  altogether  greater  than  that. 


\\'e  are  glad  to  sec  that  the  Channel  Tunnel  Co., 
Ltd.,  keeps  very  much  aFne,  and  in  evidence  at  every 
suitable  opportunity.  The  annual  meeting  of  the  com- 
pany took  place  last  Monday,  and  was  presided  over  by 
Baron  Emile  d'Erlanger,  who,  in  his  brief  speech,  dwelt 
upon  "  the  bull-dog  tenacity  of  the  British  nation," 
which  had  pulled  it  through  the  17  years'  struggle  of 
the  Revolutionary  wars  with  Napoleon,  and  may  be 
trusted  to  do  so  again.  But  no  more  striking  example 
of  this  tenacity  could  in  his  opinion  be  given  than  that 
afforded  by  the  history  of  the  Channel  Tunnel  enter- 
prise. A  small  group  of  men  for  some  50  years  ha\e 
made  the  construction  of  the  Tunnel  their  battle-cry, 
and  gradually  they  have  brought  doubters,  the  timid 
military  fossils,  and  obstructionists  of  all  kinds  either 
to  their  side,  or  to  more  or  less  doubting  acquiescence 
in  the  inevitable.  Has  the  time  come  to  bore  that 
Tunnel?  Baron  d'Erlanger  at  least  declared  that  this 
was  no  time  for  discouragement,  and  he  was  right.  Peace 
will  rise  again  upon  the  world,  and  with  it  the  day  of 
the  construction  of  the  Channel  Tunnel  will  dawn.  We 
believe  he  is  right,  for  miqucstionably  when  the  real 
peace  we  fight  for  does  come  the  existence  of  this 
Tunnel  will  be  such  an  inestimable  benefit  to  mankind, 
and  so  efficient  a  help  to  the  new  civilisation,  whose 
bioadest  foundation  stone  must  be  a  brotherhood  of 
nations,  that  constructed  it  must  be.  The  only  difficulty 
we  can  see  is  in  the  finding  of  the  money,  but  there 
will  doubtless  be  rich  people  left  in  the  world  when  the 
devastation  of  war  has  gone,  and  to  these  we  shall  look 
for  help.  Nor  need  the  enterprise  be  anything  like  so 
costly  as  it  would  have  been  in  the  old  days  of  Tunnel 


Early  in  1916  a  number  of  Departmental  Commit- 
tees were  appointed  by  the  Board  of  Trade  to  study  the 
probable  position  of  various  home  industries  after  the 
war,  especially  in  relation  to  foreign  competition,  and 
they  were  instructed  to  report  what  measures,  if  any, 
might  be  considered  necessary  or  desirable  to  safe- 
guard British  interests.  Several  of  the  reports  appear 
to  have  been  drawn  up  more  than  a  year  ago,  but  they 
are  only  now  being  issued,  and  we  are  not  at  all  sure 
that,  in  these  days  of  paper  shortage,  any  particular 
benefit  has,  been  derived  from  taking  them  out  of  their 
pigeon-holes.  W'e  search  through  them  in  vain  for 
any  novel  suggestions  of  a  really  sound  practical  char- 
acter. There  are  plenty  of  trivial  commonplaces,  and, 
of  course,  the  decimalisation  of  measures  and  money 
crops  up  as  an  infallible  panacea  for  many  ills,  real  or 
imaginary.  Also,  as  a  matter  of  course,  protection  in 
one  guise  or  another  is  put  forward  more  or  less  shame- 
facedly to  complete  the  "  Alice  in  Wonderland  '" 
mockery  of  things  as  they  ought  to  be.  The  Commit- 
tees of  the  Textile,  Iron  and  Steel,  Electrical,  and 
Engineering  trades  all  agree  that  the  importation  of 
enemy  goods  should  be  prohibited  after  the  war,  except 
under  licence,  for  a  period  of  from  one  to  three  years, 
and  there  is  reason  in  the  proposal,  although  it  is  not 
quite  the  same  as  these  good  people  seem  to  imagine. 
We  have  frequently  contended  that  German  trade  will 
have  to  be  controlled,  not  for  the  benefit  of  its  rivals  in 
Allied  countries,  but  because  otherwise  it  will  scarcely 
be  able  to  exist,  and  because  in  no  other  way  can  some 
reparation  be  exacted  for  the  devastation  wrought  in 
Belgium,  France,  Poland,  Serbia,  and  Rumania.  But 
to  dream  of  nicely  graduated  tariffs  to  shut  out  the 
United  States,  France,  Italy,  and  Japan  a  little  and 
other  countries  rather  more  is  aii  idea  fit  only  for  a 
world  ruled  by  Bedlam.  This  horrible  war  has  already- 
mortgaged  the  wealth  of  the  world  for  the  next  century, 
and  at  the  end  of  it  there  will  be  far  other  things  to 
think  about  than  the  raising  of  artificial  barriers  in 
restraint  of  trade  which,  on -the  contrary,  must  flow 
more  freely  than  ever  if  civilisation  is  not  to  be  com- 
pletely submerged.  Capital  and  labour  will  have  to 
pull  together  as  never  before  and  on  more  equitable 
terms  ;  the  land  must  belong  to  the  cultivator,  and  pay 
tribute  only  to  the  State.  There  are  still  people  who 
seem  to  think  that  things  can  be  resumed  much  as  they 
were  before  the  present  orgy  of  bloodshed  and  waste. 
Ah,  no  !  it  is  a  new  world  we  are  on  the  threshold  of, 
and  these  Committee  reports  are  not  very  helpful  in 
guiding  our  footsteps.  , 


It  was  wise  to  form  a  committee  from  among 
bankers  and  finance  houses  in  the  City  to  watch  over 
the  interests  of  the  creditors  of  Russia,  State  and  cor- 
porate. The  lead  was  taken  by  Messrs.  Baring  Bros., 
and  the  following  is  the  list  of  members.  It  constitutes 
a  strong  and  representative  body  :■ — 

Lord  Revelstoke  fMessrs.  Baring  Brothers  and  Co.),  Mr. 
Lionel  de  Rothschild  (Messrs.  N.  M.  Rothschild  and  Sons),  Mr. 
Charles  E.  Barnett  (Lloyds  Bank),  Mr.  Walter  Leaf  (London 
County,  Westminster,  and  Parr's  Bank),  Sir  Everard  Hambro 
(Messrs.  C.  J.  Hambro  and  Son),  Sir  Robert  Kindersley 
(Messrs.  Lazard  Bij-others  and  Co.),  Mr.  R.  G.  H.  Boulton 
(Messrs.  Boulton  Brothers  and  Co.),  Mr.  C.  Birch  Crisp 
(Anglo-Russian  Trust),  Mr.  W.  Koch  de  Gooregud  (Messrs. 
Panmure,  Gordon  and  Co.),  .a«d  Mr.  L.  W.  Lodge  (Messrs. 
Campion  and  Co.).  Mr.  G.  C.  Hollings  has  been  appointed 
secretary  to  the  committee. 


-Vlthough  the  total  revenue  of  the  Trust  and  Loan 
Company  of  Canada  in  the  year  to  March  31  was  £4,000 
less  at  ;^277,46o,  the  nett  profit  was  ;^2,6oo  larger  at 
/7i26,900,  and  ;^2,ooo  more  was  brought  in.  As  only 
;^29,400,  or  ;^i 5,000  less,  has  to  be  placed  to  statutory 
reserve,  and  income-tax  also  was  smaller,  the  balance 
available  is  ^17,000    up    at    ^83,350,    after    placing 


596 


Ubc  Jnvestore'  IReview. 


June  ^2,   1918. 


;^5,ooo  (new)  to  contingencies  account.  Consequently 
the  dividend  can  be  raised  from  10  per  cent,  to  12J  per 
cent.,  and  still  leave  ;£,"'2,300  more  at  ;^8,350  to  be  car- 
ried forward.  The  statutory  reserve  now  amounts  to 
;^6oo,ooo,  and  is  equal  to  the  paid  up  capital,  .so  that 
under  the  company's  charter  further  contributions  to 
the  fund  are  no  longer  compulsory,  and  the  share- 
holders may  therefore  look  forward  with  some  con- 
fidence to  increased  dividends  in  the  future.  Mort- 
gages have  been  reduced  by  ;^20o,ooo,  and  cash  is 
down  ;^I95,C)00  at  ;^i 33,000,  but  temporary  invest- 
ments have  increased  ;^38o^ooo  to  ;^563,ooo,  and  the 
position  looks  as  strong  as  could  be  desired.  Deprecia- 
tion on  reserve  fund  investments  and  losses  in  Canada 
amounted  to  only  ;^i,47C,  which  has  been  written  off. 
During  the  year  debentures  for  ;^90,ooo  were 
redeemed,  and  the  showing  is  a  fine  one  at  all  points. 

It  is  hoped  shortly  to  convene  meetings  of  the 
various  security  holders  to  make  effective  the  scheme 
for  the  reorganisation  of  the  Brazil  Railway  Co.  Mean- 
while a  statement  has  been  issued  by  the  company  set- 
ting forth  the  position  of  the  5  per  cent,  convertible 
debenture  holders,  in  view  of  the  proposed  acquisition 
of  the  Central  Uruguay  system  by  the  Uruguayan 
Government.  The  collateral  security  for  the 
;^2,ooo,ooo  5  per  cent,  convertible  debentures  consisted 
of  ;^i, 150,000  of  5  per  cent.  Bonds  of  the  Brazil 
Land,  Cattle,  and  Packing  Co.  and  ;^i,i50,ooo 
41^  per  cent.  Bonds  of  the  Uruguay  Railway  Co. 
out  of  a  total  of  ;^i,507,ooo.  Both'  of  these  subsidiary 
companies  are  in  receivership.  The  Uruguav  Railway 
Co. 's  assetSj  upon  which  its  bonds  are  secured,  yield 
practically  no  income,  and  their  total  present  value  is 
very  considerably  less  than  the  par  value  of  the  bonds 
which'  they  secure.  These  assets  include  the  Paloma 
Line  of  30  kilometres,  ;^463,754  of  ordinary  stock,  and 
;^45,8oo  of  5I  per  cent,  preference  shares  of  the  Central 
Uruguay  Railway  Co.,  and  ;^62,507  of  ordinary  shares 
of  the  Uruguay  East  Coast  Railway  Co.,  besides  other 
securities  of  Uruguay  railways.  It  has  been  arranged 
to  sell  the  Paloma  Line  to  the  Government  for 
$1,000,000  of  5  per  cent.  Internal  Government  Bonds, 
and  the  East  Coast  Railway  for  ^605,000  of  External 
Bonds.  Th'ese  two  sales  should  result  in  the  Uruguay 
Railway  Co.  receiving  about  ;^200,ooo  of  Government 
Bonds,  of  which  about  ;^i75,ooo  will  belong  lo  the 
convertible  debenture  collateral.  Negotiations  have 
also  resulted  in  the  sale  of  51  per  cent,  of  the  Uruguay 
Railway  Co. 's  bonds  for  ;^i8o,ooo  in  cash,  apart  from 
the  proceeds  of  the  sales  already  referred  to.  This 
sale,  when  completed,  will  reduce  the  convertible  deben- 
tures' interest  in  the  Uruguay  Railway  Co.  to  about 
;^56o,ooo  bonds,  but  will  give  them  about  ;^i 35,000 
in  cash.  In  view  of  the  suggested  terms  for  the  pur- 
chase of  the  Central  Uruguay  Railway,  the  sale  of 
over  half  of  the  Uruguay  Railway  Bonds  for  ;^i8o,ooo 
does  not  seem  likely  to  be  a  very  profitable  transaction 
from  the  point  of  view  of  the  convertible  debenture 
holders.  But  this  sale  was  negotiated  early  in  the 
year,  and  the  necessity  of  providing  funds  for  the  cattle 
business  was  one  of  the  principal  inducements  to  the 
debenture  holders'  committee  to  assent  to  the  sale  of 
the  Uruguay  Railway  Bonds  at  a  price  which  was  then 
regarded  as  satisfactory.  No  doubt  if  it  had  been 
known  that  the  Government  was  going  to  acquire  the 
Central  Uruguay  system  a  different  decision  would 
have  been  arrived  at. 


Affairs  in  Mexico  do  not  seem  to  be  settling  down  so 
successfully  as  we  have  been  led  to  hope  recently,  and 
the  report  of  the  Mexican  Railway  Co.,  Ltd.,  for  the 
December  half-year  is  again  a  very  desponding  docu- 
ment. "  Conditions  during  the  half-year  under 
review,"  it  is  stated,  "  showed  very  little  signs  of  im- 
provement. Numerous  bands  of  rebels  carried  on  their 
operations  in  various  parts  of  the  country,  and  assaults 
on  the  trains  running  on  the  line  caused  loss  of  life  and 
damage  to  the  rolling  stock.  The  shortage  of  gold 
and  silver  currency  has  continued,  and  there  have  been 
increases  in  export  and  import  dues,  and    in    internal 


taxation,  all  of  which  have  resulted  in  a  curtailment  of 
business."  For  the  period  from  September  i,  1916,  to 
April  2,  1917,  when  the  line  was  worked  by  the  com- 
pany, the  gross  receipts  in  Mexican  currency  amounted 
to  $4,458,000,  and  the  iK-tt  revenue  converted  into 
sterling  was  ;£,'i65,c)oo,  but  interest  absorbed 
;£'364,oc)0,  and  after  bringing  the  balance  of  the 
reserve  fund  (;^82,6oo)  into  account  there  was  a  defi- 
ciency at  March  31,  1917,  of  ;£J'i  16,600.  Since  then 
the  line  has  again  been  operated  by  the  Government, 
and  repeated  applications  for  its  restoration  to  the 
company  have  been  unsuccessful.  In  April  last  the 
Government  promised  to  pay,  "  provided  that  circum- 
stances permit,"  the  sum  of  $50,000  monthly,  in  order 
to  assist  the  company  in  meeting  some  of  its  commit- 
ments, but  so  far  only  $10,000  has  been  received.  It  is, 
of  course,  useless  under  present  conditions  to  attempt 
to  press  claims  against  the  Government,  and  the 
patience  of  the  stockholders  must  be  sorely  tried,  but 
perhaps  there  are  brighter  days  in  store  for  them.  In 
any  case,  however,  a  great  deal  will  have  to  be  spent 
on  the  line  when  it  is  restored  to  the  company,  and  the 
outlook  is  not  exactly  cheerful. 


Last  year's  results  of  the  Anglo-Chilian  Nitrate  and 
Railway  Co.,  Ltd.,  were  not  so  favourable  as  those 
for  1916,  but,  all  the  same,  they  may  be  regarded  as 
very  satisfactory.  Traffic  carried  was  128,000  tons 
smaller  at  292,520  tons,  and  the  gross  profits  fell 
;^i6o,ooo  to  ^^473, 000,  but  as  this  followed  a  gain  of 
;^28o,ooo,  the  decline  may  be  regarded  with  equani- 
mity. Nett  profit  comes  out  at  ;^332,500,  but  the 
directors  have  not  thought  it  necessary  this  year  to 
make  any  addition  to  depreciation  and  general  reserve 
account,  to  which  ;^i85,ooo  was  allocated  last  year, 
and,  w'ith  a  larger  amount  brought  in,  t+ie  available 
balance  is  higher  at  ;^5o8,30o.  The  dividend  of  25s.,  or 
25  per  cent.,  tax  free,  is  repeated,  but  last  year  there 
was  a  bonus  of  5s.  in  addition.  Now  the  carry  for- 
ward is  increased  by  ;^70,ooo  to  ;^283,ooo,  subject  to 
excess  profits  dut}',  on  account  of  which  ;^38,ooo  has 
been  paid  in  respect  of  1916.  Last  year  the  amount  of 
nitrate  produced  was  2,590,000  quintals,  and  the  com- 
pany is  an  exceedingly  prosperous  one,. 


Our  Foreign  Trade  in  May. 

We  arc  beginning  to  be  rather  anxious  about  the  trend  of  our 
overseas  commerce  as  the  adverse  movements  which  have  been 
noted  for  some  time  past  are  becoming  accentuated.  The 
position  is  so  serious  that  we  think  the  Board  of  Trade  ought  to 
reconsider  its  decision  to  withhold  many  of  the  s-tatistics  re- 
lating to  quantities.  We  were  always  a  little  doubtful  about 
the  wisdom  of  this  course,  but  if  it  was  justified  as  a  temporary 
measure  the  time  has  surely  come  to  revert  to  the  old  practice. 
The  information  afiorded  to  the  enemy  would  be  of  no  practical 
value,  and,  as  Mr.  Asquith  pkaded  in  the  House  of  Commons 
the  other  day,  the  country  ought  to  ibe  told  the  whole  truth, 
or,  at  any  rate,  as  much  as  is  compatible  with  military  exigen- 
cies. Here  is  our  usual  summary  of  Oie  principal  figures,  and 
it  will  be  eaf>ecially  noted  that  the  excess  of  imports  is  growing 
at  an  alarming  rate : — 


May, 
19:8. 


Imports  . . . 
Exports  . . . 
Re-exports. 


£ 
125,883,581 
44,967,221 
3,400,208 


Compared 
with  1917. 

£ 
+  38.257,868 
+    1,529,965 
—  2,936,169 


Compared 
with  1916. 


+  42,090,851 
—  2,057,190 
7.583.2«5 


Five  Months. 


Imports I  550,588.335  i  +  136,073,910  -H63,o06,988 

Exports j  201,806,418  j—    5,689,463:+    7,273,100 

Re-exports 14.663,384  —  25,154,858;—  30,585.023 

Excess  of  imports    j  334,118,533  |-H  166,918,231 +180.378,911 

Comparison  is  to  some  extent  vitiated  by  the  fact  that  certain 
Government  stores  are  now  included  which  were  omitted  ftre- 
vious  to  July  I  last,  but  they^o  not  greatly  affect  the  totals.  It 
will  be  seen  that  imports  have  created  a  fresh  record,  being 
six  millions  larger  than  in  April  and  16  millions  above  the  pre- 
vious highest.  The  increase  for  the  month  is  equal  to  43} 
per  cent.,  and  for  the  five  months  almost  33  per  cent.  On  the 
other  hand,  exports  for  the  five  months  are  down  23  per  cent., 
and  re-exports  63  per  cent.,  this  valuable  trade  having  been 
reduced  almost  to  vanishing  point.  Imports  of  food  and  drink 
rose  nearly  25  millions,  or  55  per  cent.,  but  how  much  of  thi« 
is  due  to  higher  prices  or  whether  there  has  been  any  increase 
in  qu.-mtities  we  are  not  permitted  to  know.  Meat,  includinij 
animals  for  food,  increased  16  millions,  or  nearly  180  per  cent., 
and  we  may  hope  that  the  quantity  in  this  case  is  substantially 


JlNE  22,    1918. 


XLbe  Jnvestots'  IReview. 


597 


jarger.  Grain  increased  ^'2,880.000  and  other  non-dutiable 
articles  of  food  five  millions,  while  imports  of  tobacco  more 
than  doubled  at  ^1,027,000. 

Where  quantities  are  given  they  are  almost  invariably  lower, 
with  the  exception  of  wood  and  timber,  which  shows  an  in- 
crease of  41  per  cent,  in  amount  and  94  per  cent,  in  value. 
Practically  the  same  amount  of  raw  cotton  was  received,  but  it 
cost  71  per  cent.  more.  Flax  fell  off  93  per  cent.,  and  the  decline 
in  value  was  about  the  same,  but  hemp  rose  30  per  cent,  in  cost, 
although  the  amount  was  29  per  cent,  smaller.  \\'ool  dropped 
over  70  per  cent,  in  quantity  and  approximately  the  same  in 
value.  Oil  seeds,  nuts,  oils,  &c.,  of  which  quantities  are  now 
suppressed,  advanced  nearly  three  millions,  or  48  per  cent. 
Hides  fell  10  per  cent.,  but  cost  2^  per  cent,  more,  and  paper- 
making  materials  dropped  60  per  cent,  in  amount  but  only  44 
per  cent,  in  value.  Among  manufactured  articles  the  principal 
increase  is  in  chemicals,  which  have  advanced  ;£2, 380.000,  or 
120  per  cent.,  and  miscellaneous  (presumably  mainly  Govern- 
ment purchases)  total  about  ten  millions,   against  two. 

With  regard  to  exports,  the  record  is  a  depressing  one,  quan. 
titles  being  lower  under  every  important  heading.  Coal  fell 
17  per  cent,  in  weight  and  12^  per  cent,  in  value,  and  the  total 
decline  in  raw  materials  is  ;^i, 292,000.  Manufactured  articles 
have  increa-sed  /a, 850,000,  but  as  cotton  alone  accounts  for  an 
advance  of  4J  millions,  it  is  e\-ident  there  must  have  been  heavy 
■declines  else\\'here.  As  a  matter  of  fact,  except  for  an  increase 
of  ^1,227,000  in  carriages,  motors,  &c.,  nearly  every  bi-anch 
shows  a  decrease,  the  important  item  of  miscellaneous  being 
down  ;if  1,142,000,  or  30  per  cent.  Iron  and  steel  manufactures, 
apparel  and  other  materials  showed  declines  of  ^^584,000, 
pf 634,000,  and  ;,f  396,000  respectively,  and  if  it  were  not  for  our 
wonderful  cotton  trade  we  might  begin  to  despair.  As  it  is, 
the  reduction  in  quantities  creates  grave  apprehension,  and  we 
are  afraid  that  the  Prussianised  military  intelligence  which 
tries  to  turn  elderly  but  very  useful  citizens  into  perfectly 
helpless  conscripts — a  liability  to  the  country  from  the  very 
start  instead  of  an  asset— must  tend  to  make  things  still  worse 
in  the  near  future.  Surely  we  are  not  being  forced  to  the  hope, 
less  conclusion  that  the  House  of  Commons  does  not  exercise 
any  intelligent  control  over  affairs  at  all  !  Or  is  the  nation 
really  to  be  dragged  at  the  tail  of  the  Xorthcliffe  office-boy 
chariot?     Umph  .  ! 


A    German    Philosopher    on     German 
Trade  Aims  and  Methods. 

Last  Saturday's  Times  contained  an  interesting  summary  by 
the  late  correspondent  of  that  paper  in  Berlin  of  soine  utter- 
ances of  a  Dr.  Paul  Lensch,  a  Teutonic  philosopher,  aged  45, 
who  has  been  enlightening  his  countrymen  and  the  world  on 
the  real  nature  of  German  Socialism,  the  value  of  Protection, 
and  the  essentially  brutal,  one  might  say  slaughter-house, 
character  of  German  aims  in  conquest  and  trade  ideak.  He 
tells  us  that  German  Protection  was  "quite  obviously" 
•directed  against  England,  and  that  it  kept  foreign  industrial 
prod«ctj3  from  the  home  market  while  giving  German  industries 
complete  domination  there.  While  it  did  this,  while  it  stripped 
the  poor,  that  is  to  say,  and  held  the  workman  more  and  more 
in  bondage,  it  created  conditions  which  gave  Gennnn  industry 
an  organised  superiority  over  English  industry.  That  is  in- 
teresting and  might  ibe  alarming  if  true,  only  it  haippcns  not  to 
be  true.  "Organised  industry,"  this  philosopher  of  the  out-of- 
his-inner-consciousness-evolwing  Teutonic  type,  assiires  us 
"when  foreign  competition  was  warded  off  by  Protection,  was 
able  a.t  the  same  lime  to  produce  more  cheaply  .and  yet  to 
raise  prices  in  the  home  market'.''  So  far  as  cheapness  of 
production  goes  that  also  is  a  falsehood,  and  Dr.  Paul 
Lensch  would  have  known  it  to  be  so  had  he  taken  the 
trouble  to  look  outside  his  own  preconceived  notions.  But 
the  whole  essay  is  a  farrago  of  nonsense,  and  to  the  mind 
living  in  the  freer  atmosphere  of  F.ngland  its  assumptions  are 
grotesque.  The  "  cartels  "  and  combinations  fostered  and 
forced  the  foreign  trade  of  Germany  until  it  was  on  the  verge 
of  a  disastrous  collapse,  and  was  not  at  all  to  the  benefit  to 
the  German  industrial  or  to  the  home  market.  The  learned 
noodle  acknowledges  this  by  his  boasting  over  the  great  part 
played  by  the  State  in  the  campaign — higher  bounties,  favoured 
transport  terms,  mere  ruthless  protection,  all  were  used — 
and  brought  ruin  in  sight. 

Dr.  Lensch  boasts  that  profits  thus  evolved  at  home  by 
oppressing  the  .people  "were  used  for  the  conquest  of  the 
foreign  market.  The  powerfully  extended  and  extremely  effi- 
cient German  industries  requiirod  more  business  than  the  home 
market  could  give  them.  So  they  began  to  work  for  the  foreign 
market,  and,  in  order  to  meet  competition  there,  the  cartel 
created  for  its  members  which  were  working  in  foreign  countries 
a  special  fund,  which,  was  fed  from  the  extra  profits  of  the  home 
market.  From  this  fund  the  cartel  paid  the  .so-called  exiport 
premiums.  With  this  support  behind  them,  the  Gorman  in- 
dustrialists were  very  soon  able  to  appear  in  the  foreign  market 
and  theire  to  sell  their  goods  more  cheaply  than  in  the  German 
market.  .  .  .  There  was  no  longer  any  question  of  pro- 
tecting the  home  market ;  it  was  purely  a  question  of  attacking 
the  foreign  market.  Protection,  which  was  intended  to  break 
the  monopoly  of  the  superior  English  industry  and  to  create 
free  competition  for  German  industry,  was  converted  into  the 
monopoly  of  a  handful  of  cartell  magnates,  and  had  finally 
driven  free  com,petition  out  of  the  German  market." 

A  truly  astonishing  result  on  which  the  man  proceeds  to 
boast  of  "the  triumph  of  Germany."  Germ.nn  Cu.stoms  duties 
went  on  rising,  and  the  higher  the  duties  the  higher  were  the 


extra  profits  of  tlio  home  market,  the  higher  the  export  pre- 
jiiiums,  and  the  more  powerful  the  position  of  Germany  in  the 
world  market."  The  which  is  also  a  lie.  Have  we  anv"  Protec- 
tionists capable  of  talking  balderdash  of  this  type?  '  We  did 
have,  and  they  may  exist  still,  but  if  they  do  they  arc  generally 
quiet.  Xot  even  l^age  Croft  and  his  ultra  cohort  can  attain  to 
such  heights  of  selfishness  and  falsehood. 

The  results  of  Protection  in  the  home  market  could  not  be 
more  succinctly  stated  than  in  tho-  above  sentence.  As  regards 
foreign  markets  the  writer,  while  boasting,  admits  the  utter 
failure  of  the  German  method  of  conquering  the  world's  trade. 
Crisis  followed  crisis,  and  after  Europe  had  twice  in  ten  years 
narrowly  escaped'  war,  "  the  third  time  what  was  inevitable 
became  a  fact."  Why  was  it  inevitable?  Xot  because  the  world 
outside  Germany  was  in  danger  of  disaster,  but  because  the 
(jermans  had  pushed  their  trade  with  such  stupid  assiduity 
and  unscrupulous  insistence  everywhere  the  world  over  that  it 
had.  become  a  losing  trade,  and  disaster  for  themselves  was 
imminent.  So  much  was  that  the  fact  that  even  the  most 
prudent  among  the  Teuto-Judaic  industrials  in  the  HohenzoUem 
Empire  concluded  that  it  might  be  better  to  gamble  in  a  war 
on  the  chance  of  escaping  the  certain  bankruptcy  to  which 
their  trade  methods  had  brought  them  face  to  face.  By  war 
they  hoped  to  gain  much  and  to  thrust  their  bankruptcy  on  us. 
Is  it  any  wonder  that  Dr.  Paul  Lensch  glories  in  German 
barbarism,  and  looks  forward  with  eager  covetousness  to  the 
obliteration  of  Austria  and  the  unchallengable  dominance  of 
Prussianised  Germany  over  Russia,  the  Balkans,  and  the 
further  East?  But  the  Slavonic  races  this  exuberant  savage 
exults  over  will  perchance  have  more  than  he  wots  of  to  say 
on  that  part  of  the  insane  dream  of  a  professor  gone  crazy 
with  vanity,  brooding  over  savage  lusts  in  an  ecstasy  of 
ignorant  conceit.  "      • 


By-the-Way  War  Notes. 

Strange  though  it  may  seem,  it  is  none  the  less  true  that  this 
writer  always  feels  easement  of  mind  when  he  turns  from 
affairs  domestic  to  the  turmoil  of  war.  Home  affairs  have 
become  so  muddled  and  mismanaged  that  their  contemplation 
generates  the  fear  that  our  civilisation  is  but  a  hypocrisy,  and 
as  such  destined  to  perish  as  one  consequence  of  this  war. 
The  intrigues  and  spites ;  the  jealousies,  incompetence,  and  in- 
conceivable waste ;  the  wholesale  distribution  of  shoddy  de- 
corations and  titles  no  self-respecting  man  can  touch,  least  of 
all  no  genuine  respecter  of  his  fellow-men — all  these  and.^ount- 
less  other  manife.stations  of  social  decay  and  rottenness  in 
things  political  fill  us  with  a  dread  of  the  future  at  times 
almost  amounting  to  despair. 

But  at  the  front  we  enter  fresh  air  and  are  amid  realities. 
The  spirit  of  the  troops  there  can  never  be  studied  without 
exhilaration.  They  may  not  always  be  well  led,  and  it  is  but 
too  true  that  the  work  of  our  General  Staff  has  often  been  slack, 
and  even  at  times  fusionless.  We  have  again  and  again  lost 
opportunities  and  missed  the  aim  of  great  and  well-planned 
assaults  through  the  failure  of  the  High  Command  and  its 
staff  to  display  the  perspicacity,  foresight,  and  energy  de- 
manded of  them ;  but  the  men  always  stand  true  through  the 
.worst  hours,  and  fight  in  a  manner  which  makes  them  ever 
worthy  comrades  to  the  heroic  citizen  armies  of  France.  Look- 
ing on  that  ever  steadfast  courage  of  the  men,  our  gloom  dis- 
appears.    We  are  able  to  hope  again. 

At  the  present  moment  we  are  in  the  pause  between  two  Ger- 
man onslaughts.  "  They  have  the  initiative,"  these  Germans, 
we  are  always  assured,  and  the  assertion  is  true  to  the  extent 
that,  after  each  check  or  beating  they  experience,  it  rests  with 
them  to  renew  the  wholesale  murder.  But  they  have  no  choice. 
They  musi  attack  again  and  again  with  all  their  might,  or 
perish.  The  only  point  of  doubt,  therefore,  is  as  to  where  the 
next  attack  may  be  delivered,  and  the  enemy,  as  a  matter  of 
course,  consequently  does  his  best  to  mislead  us.  Between 
onslaughts  each  side  is  busy  with  raids  and  scoutings  of  dis- 
covery. 

This  week  has  been  characterised  on  the  Western  front  by  a 
furious  assault  on  the  French  defending  Rheims.  It  has  failed, 
as  nearly  all  direct  assaults  on  the  French  do  fail,  such  is  the 
heroism  inspiring  the  troops,  but  the  onslaught  of  some  20,000 
to  25,000  German  shock  troops  sent  forth  to  capture  Rheims 
does  not  tell  us  decisively  what  the  enemy  is  aiming  at  with 
the  next  monster  offensive  which  he  is  now  busy  organising. 
It  is  equally  essential  to  the  safety  of  his  advance  that  he 
.should  hold 'that  citv.  whether  he  designs  to  drive  forward  on 
Paris  by  way  of  Compiegne  and  the  Oise,  or  whether  he 
means  to  stake  all  upon  a  drive  forward  from  Chateau  Thierry  ' 
a'ong  the  valley  of  the  Marne.  That  is  assuming  his  aim  is  to 
capture  or  try  to  beleaguer,  or  even  to  come  within  bombarding 
di.stance  of  Paris. 

But  it  is  almost  equally  necessary  that  he  should  hold  the.se 
cities  to  safeguard  his  flanks  and  lines  of  communication  if  he 
means  to  make  another  dash  for  the  Channel  Ports  and  try  once 
more  to  crush  the  British  Army  in  Flanders.  So  our  leaders 
have  to  be  ever  on  the  watch  and  strain,  ready  for  anj'  con- 
tingency. .\nd  they  never  give  the  enemy  peace ;  ceaselessly 
our  airmen  and  the  French  airmen  spy  over  the  German  lines, 
and  rain  destructirKi  upon  them.  Their  success  in  this  work 
is  itself  a  goad  driving  the  enemy  on  to  try  once  more  to  reach 
some  definite  result  favourable  to  himself  at  some  point. 

Happily  we  h-ive  been  taught  something  by  our  experiences 
in  this  war,  and,  foul  fighter  though  he  usually  is,  we  know 
that  the  German  pawn  does  not  lack  courage — the  courage  of  the 
deluded. 


59^ 


Zbc  5nve8tor6'  IReview^ 


June  22,  1918. 


But  we  l;now  most  of  his  tricks  and  can  counter  them.  So 
one  can  feel  our  men  nerving  themselves  for  the  ordeal  in  serene 
confidence.  We  and  the  French  have  also  now  probably  quite 
750,000  American  troops  to  as.sist  us.  Already  some  of  them 
are  fighting  in  the  line  with  the  French  along  various  parts  of 
the  front  from  Alsace  north-westward.  If  the  Prussian  drovers 
Iteep  back  their  .sheep  for  much  longer,  General  Foch  may  order 
the  armies  under  his  command  to  begin  their  shepherding. 
Ah  !  that  day  is  coming,  never  doubt. 

The  next  assault  of  the  Gerntans  promises  to  be  desperate  and 
formidable  in  proportion  to  the  imminence  of  the  ruin  and 
despair  now  confronting  the  Prussian  brute.  We  see  this 
despair  at  it's  full  abandon  in  the  Austrian  assaults  upon  Italy, 
begun  a  week  ago.  They  have  failed,  not  because  they  were 
not  elaborately  prepared  for  and  backed  up  with  enormous 
masses  of  artillery  and  troops — no  less  than  7,500  guns,  it  is 
reported — but  because  the  Italian  Army  has  risen  to  a  level  with 
the  French  and  liritish  in  fighting  power  and  sublimely  heroic 
da.sh  in  attack,  as  well  as  undauntable  tenacity  in  defence. 

Austria,  doubtless,  obeyed  the  orders  of  William  Hohenzollern 
in  organising  and  making  this  attack,  which  has  failed,  but 
her  own  necessities  also  dictated  a  last  effort  before  surrender. 
And  just  for  a  brief  moment  Ilabsburg  Charles  may  have  felt 
a  gleam  of  hope  that  his  imposture  of  Empire  might  be  saved. 
There  seemed  to  be  a  chance  of  success,  for  the  best  troops  that 
the  Habsburg  can  now  lay  hold  of  were  flung  in  masses  against 
an  upland  bastion,  and  at  first  seemed  to  succeed  in  seizing 
the  Montello  heights.  Had  these  been  won  and  the  Italians 
driven  finally  out,  the  whole  Italian  Army  on  the  Lower  Piave 
would  probably  have  had  to  withdraw,  uncovering  Treviso, 
leaving  the  way  open  for  the  enemy  to  enter  Venice.  A  disaster 
like  this  would  not  have  beaten  Italy,  but  it  might  have  pro- 
longed the  war,  and  also  the  life  of  one  of  the  vilest  tyrannies 
on  earth — the  Habsburg  Empire,  liut  the  assault  just  missed 
succe.ss,  and  everywhere  else,  whether  on  the  Upper  Piave, 
where  the  Uritish  and  French  are,  or  down  towards  the  marshes 
and  low  ground  at  the  mouth  of  the  river  and  on  the  Site 
stream,  the  Austrians  have  been  held  up  and  punished  severely. 
Their  very  successes  in  forcing  the  passage  of  the  river  have 
made  them  the  prey  of  the  brave  Italian  troops.  A  little  more 
of  this  punishment  and  Austria  will  be  paralysed,  driven  out  of 
the  fight  for  good,  and  brought  face  to  face  with  an  agony  of 
hunger  and  disease  probably  the  like  of  which  Europe  has  not 
seen  for  centuries.  Ever}*  day  that  passes  the  food  situation  in 
Austria  erows  more  desperate,  as  we  have  all  along  insisted  it 
would  do  this  summer.  Grain  from  Ukrainia  has  not  come 
forward  at  all  as  was  expected,  and  soon  there  will  be  no  bread 
at  all  for  millions  of  the  population.  In  Vienna  the  bread  ration 
is  now  reduced  to  little  more  than  3  ozs.  a  day,  and  it  is  little 
other  than  a  form  of  speech.  There  is  no  bread  at  all  for  many 
of  the  people  ! 

Meanwhile,  the'  population  of  the  Empire  is  split  into  antag. 
onisfic  fragments.  It  is  but  in  small  part  Germanic,  and  the 
Czechs  of  Bohemia,  the  Poles  of  Galicia,  the  Slavs  and  Yugo- 
slavs, as  well  as  the  Rumanians  within  the  kingdom  of  Hun- 
gary are  surcharged  with  the  determination  to  revolt  and  assert 
their  ri^ht  to  live  independent  lives.  Even  now  they  are  busy 
doing  their  utmost  to  throw  off  the  vile  Austrian  domination, 
and  such  is  the  cleavage  that  Charles  and  his  German 
ministers  dare  not  summon  the  Reichsrat  to  reassemble.  One 
cause  of  the  failure  of  the  great  Austrian  assault  upon  Italy 
lies  unquestionably  in  the  half-heartedness  with  which  the 
divisions  composed,  in  whole  or  in  part,  of  these  antagonistic 
oppressed  races  join  in  the  fight. 

And  things  are  not  so  very  much  better  behind  the  tawdry, 
blood-smeared  facade  of  the  Hohenzollern  Empire  itself.  The 
truth  is  suppressed  there,  even  as  in  Austria,  perhaps  with  a 
more  ruthless  thoroughness  than  in  Austria,  but  enough  leaks 
through  to  indicate  the  approach  of  famine  over  most  of  the 
land.  The  bread  rations  have  been  reduced  in  Perlin  and  the 
price  of  grain  raised  everywhere.  Germany  cannot  get  corn 
from  Ukrainia  any  more  than  Hungary  or  Austria,  and  there 
are  yet  two  months  and  more  to  the  harvest.  No  wonder  I.uden- 
dorff  and  his  generals  are  desperately  wasting  the  rest  of  Ger- 
many's manhood  in  vain  efforts  to  snatch  such  a  transitory 
gleam  of  success  as  would  avert  their  impending  surrender  at 
discretion.  We  therefore  look  in  the  immediate  future  for  a 
renewal  of  the  conflict  on  a  gigantic  scale,  and  hope  that  all 
the  armies  will  prove  equal  to  the  ordeal,  because  tjie  more 
thoroughly  the  Germans  are  beaten  the  sooner  will  the  war 
cease.  We  should  know  now  .soon  whether  Prince  Rupert  of 
Bavaria  really  has  all  that  mass  of  reserve  gun-fodder  at  his 
disposal  rumour  bestows  upon  him.  No  doubt  the  Russian 
"  conquests  "  have  been  denuded  of  troops,  but  a  million  or  so 
extra  of  men  will  be  hard  to  feed  these  davs  ! 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 

Period. 


It  is  stated  by  the  Times  correspondent  in  Buenos  Avres  th.it 
half  the  quantity  of  cereals  stipulated  by  the  Convention  to  be 
supplied  to  the  I'nited  Kingdom,  or  1.250,000  tons,  has  already 
been  .shipped,  and  this  in  .spite  of  frequent  strikes  throughout 
the  period.  "  The  cooperation  of  the  railways,"  he  adds,  "  has 
boen  most  valua.ble,  and  the  outcome  has  been  achieved  by  a 
generous  policy,  honest  dealing,  and  capable  organisation, 
while  the  presence  of  numerous  Allied  vessels  loading  grain  in 
all  the  Argentine  ports  illustrates  the  Allies'  power  to  fulfil  her 
obligations  as  well  as  the  enemy's  failure  to  interrupt  Argentine 
tr.nde.'  No  wonder  that  the  reception  accorded  at  Rosario  to 
.Sir  Maurice  de  Bunsen  and  the  other  members  of  the  British 
Missions  has  been  of  the  most  friendlv  character. 


Aibheel  Tea  Co (Dec.) 

Do (Prev.) 

Andrew  Knowles  and  Sons 
(Feb.) 

Do (Prev.) 

Baraoora  (Sylhet)  Tea  Co. 
(Dec.) 

Do (Prev.) 

Consolidated  London  Pro- 
perties   (Mar. 

Do (Prev. 

Cranston'sHotelsCo.(May) 

Do (Prev.) 

Grand  Junction  Canal  Co.' 
(i  Dec.) 

Do (Prev.) 

Highland  Tea  Co.  of  Cey-' 

Ion    (Dec.)! 

Do (Prev.): 

May6eld    (Dimbula)    Tea] 
Co.  of  Cey  Ion..  (Dec.)' 

Do (Prev.) 

Mazdehee  Tea  Co. . .  (Dec  ) 

Do (Prev.) 

Michell  and  Aldous  (Mar.) 

Do (Prev  ) 

New  River  Co (Mar 

Do (Prev 

North  British  Cold  Storage 

and  Ice  Co (April) 

Do (Prev.); 

Panawatte  Tea  and  Rubber! 

Estates (Dec.)l 

Do (Prev.)j 

Poongalla   Valley   Ceylon  I 

Co (Dec); 

Do (Prev.)j 

The    Brightside    Foundry! 

and   Engineering   Co.! 

(June); 

Do (Dec) 

The  General  Scottish  Trustl 

(April): 

Do (Prev.)l 


Gross 
Profit. 


Nett 
Profit. 


ToUl 
Re- 
serves. 


92,720 
89,980 

35.600 
36,420 

58,780 
46,890 

16,190 
19,240 

32.350 
26,120 
7.380 
9,640 
29.590 
18,230 

32.540 
31.410 

12,100 
10,900 

35.^50 
41,140 

15.520 
13.930 


5,660 
6,360 


£ 
6,250 

12,370 

33.430 

74.780 

40,710! 
46,370 

12.5401 

10,840! 

9,690 

8.740j 

20,500 
9.860 

4.5101 
6.480J 

8,980 

6,750 

1.250 

2,840 

26,320 

12,870 

16,990 

16,490 

3.560 
2.870 


31.700 
39.000 

13.750 
13,000 


18,460 

17,810 

3,810 


£ 

3,000 

3.000 

110,000 
110,000 

70,000 
63,000 

22,000 
18,717 


8.970 

I0.220 

4,000 
4,000 

4,000 
3.000 


Divi- 
dend. 


68.000 

62,500 

4,500 

4.500 

6,500 
6,000 

63,000 
60,500 

8,000 
8,000 


40.000 

35.000 

2,500 


4.73°        2.500 


% 
«5 
25 

9 
9 

30 
30 

4: 
4: 
2 

2': 
3i 

2 

10 
10 

10 

8 

71 
14 
10 

6 

I2i 
12i 

? 

22} 
25 


15 
I2J 

4 


Carried 
For- 
ward. 


£ 

4.110 
6,890 

5.870 
2,440 

27,290 
23.760 

3.4»» 

3.49^J 

11,000 

8.670 

13.68* 
11,240 

1,673 
2,420 

3.460 
1,670 
3.420 
3.390 
3.44* 
3.140 
2,980 
3,000 

2.400 
1,720 

12,52c 
10,190 

7.220 
6.420 


2,630 

2,420 
1,490. 

1,360 


American  Business  Notes. 

The  complete  figures  relating  to  the  Third  Liberty  Loan  put;- 
the  total  subscriptions  at  ?4, 1 70,020,000,  or  ^834,000,000.  In 
the  Federal  Reserve  district  of  New  York  alone  about 
$1,115,000,000  were  tendered,  and  we  wonder  how  long  the 
monej-  will  last.  At  the  present  rate  of  expenditure  it  can- 
not be  expected  to  provide  the  means  for  very  many  month; 
For  the  United  States  is  in  this  war  with  a  thoroughness  un- 
rivalled at  any  period  of  her  history,  and  excelled  by  none  cf 
the'  Allied  belligerents. 

The  Washington  correspondent  of  the  Times  telegraphed  on 
Wednesday  that  a  strong  intimation  had  come  from  the  Secrt- 
tary  to  the  Treasury  that  the  next  Liberty  Loan  will  be  floated 
on  November  i.  and  will  amount  to  ;f  1.200,000,000.  Meantime 
short  term  certificates  will  be  sold  to  the  banks  at  the  rate  of 
about  ;^i5o,ooo,ooo  every  fortnight.  This  foreshadows  a  rate  of 
expenditure  which  puts  even  ours  into  the  shade,  but  then  the 
United  States  means  to  finish  this  killing  business  to  the 
order  of  kaisers  and  kings  for  good  and  all.  The  correspon- 
dent adds  that  this  ^1,200,000,000  loan  will  no  doubt  be  fol- 
lowed by  an  even  larger  loan  next  spring  for  the  war  expense^ 
in  the  twelve  months,  July,  1918,  to  June,  1919,  are  estimated  at 
;^4,8oo,ooo,ooo,  of  which  ^f  i  ,600,000,000  only  will  be  raised  by 
taxes,  and  after  allowing  for  the  ;^  1,200,000,000  loan  coming  in 
November,  will  leave  at  least  ^'2,000,000,000  to  be  borrowed 
early  next  year.  ''  The  amount  will  not  cause  even  a  flutter 
amongst  the  American  people,"  he  says.  "They  are  prepared 
to  furnish  the  money  to  anj-  amount  needed  to  carrj-  this  war 
to  a  successful  conclusion,  and  are  merely  waiting  for  the  word 
to  subscribe."     We  have  no  doubt  at  all  that  this  is  the  case. 

A  considerable  expenditure  of  capital  has  been  sanctioned  by 
the  Railroad  Administration  of  the  United  States.  The  sum 
is  $(537,961, <HX),  of  which  $440,071,000  are  assigned  to  addition-; 
and  betterments,  $479,687,000  to  equipment,  and  $18,204,000  for 
extensions.  Most  of  the  money  is  thus  to  be  put  out  upon 
what  we  call  in  our  English  fashion  "  lines  open  for  traffic," 
and  very  little  upon  extensions.  The  Pennsjivania  system,  east 
and  west,  does,  it  is  true,  contemplate  the  issue  of  $6,775,000  on 
extensions,  but  that  is  the  only  line  in  the  long  list  whose 
requirements  in  that  direction  amount  to  as  much  as  $1,000,000. 
The  Atchison,  Topeka,  and  Santa  Fe  is  to  be  allowed  to  spend 
$41,466,000  on  additions  and  betterments  and  equipment,  but 
only  $701,000  is  assigned  to  extensions,  and  the  New  YorK 
Central  puts  down  a  mere  $75,000  under  that  head,  while  it> 
expenditure  on  additions  and  betterments  is  entered  at 
$32,429,000,  and  on  equipment  at  $38,168,000,  or  $70,672,000  in 
all.     The  whole  of  this  money  cannot  be  spent  now,  and  sMne 


Jl'NE   22,    I918. 


Zbc  Jnveetove'  IReview, 


599 


of  it  perhaps  may  not  be  disbursed  for  many  )'ears  to  come. 
On  the  other  hand,  there  will  be  considerable  additions  from 
time  to  time  to  the  amounts  raised  for  particular  improvements 
which  were  not  foreseen  when  this  list  was  prepared.  Are  our 
railways  doing  anything  in  this  way,  or  are  they  being  allowed 
to  run  down?     The  answer  is  silence. 

The  Atlantic  Coast  Line  Railroad,  which  extends  to  4,700 
miles,  of  which,  however,  only  about  330  miles  are  double 
tracked,  earned  $44,063,000  last  year,  or  $7,000,000  more  than 
in  1016,  and  its  working  expenses  were  about  $6,000,000  up 
at  .'ii29,774,ooo.  If  followed  that  the  nett  revenue  of  $14,289,000 
was  just  about  $1,000,000  up.  That,  however,  was  before  de- 
ducting taxes,  and  these  took  $2,264,000,  against  $1,843,000  in 
1916,  so  that  the  final  nett  income  of  $12,013,000  was  only 
$600,700  up.  The  company's  dividend  on  its  holding  in  Louis- 
ville and  Nashville  stock  was  again  7  per  cent.,  or  $2,750,000, 
and  increases  were  received  under  other  heads  of  revenue,  so 
that  the  final  clear  income  of  $17,192,000  was  fully  $1,200,000 
higher,  and  the  common  stock  got  7  per  cent.  Two  years  ago 
it  got  5  pfr  cent.  The  property  seems  to  be  thriving  as  the 
land  which  it  serves  is  being  developed. 

Few  people  here  have  any  interest  in  the  Wabash  Railway 
Company  now,  at  any  rate  in  its  present  form,  but  it  may  be 
well  to  mention  a  figure  or  two.  Its  gross  earnings  were  about 
$2,650,000  up  at  $40,472,000,  but  working  expenses  were  over 
$3,500,000  higher,  so  that  the  nett  revenue  from  working  was 
$840,000  lower  at  $12,003,000.  Taxes  rose  a  little,  and  rentals 
paid  and  hire  of  equipment  cost  a  little  more,  but  in  the  end 
the  ■'  A  "  preference  stock  got  4  percent.,  as  compared  with  i  per 
cent,  tor  1916,  and  the  balance  over  was  $2,324,000,  or  about 
$2,500,000  less  than  in  the  previous  year.  In  each"  of  the  two 
previous  years  1914  and  1915  there  was  a  deficit. 


MAY     RUBBER    OUTPUTS. 


Insurance    News. 

Improved  results  were  achieved  by  the  Gresham  Life  Assur- 
ance Society  in  19x7,  the  number  of  policies  issued  being  76 
larger  at  2,876,  while  the  amount  assured  was  ^255, 992  more  at 
;^i, 510,058.  The  corresponding  nett  new  premium  was  ;^6,67o 
higher  at  ;^64,i35,  but  the  total  income  declined  by  ^£'17,505  to 
.;^i, 223,079.  But  this  is  due  to  the  fact  that  only  partial  returns 
have  been  received  and  the  figures  are  not  final.  As  regards 
claims,  the  experience  was  more  favourable  than  in  the  previous 
years,  claims  by  death,  which  were  well  within  the  expectation, 
•j^ing  /40.141  less  at  ;^375,227,  including  bonus  additions, 
while  endowments  maturing  were  ;^i  1,626  smaller  at  ^572, 280. 
A  slight  decrease  was  shown  in  the  netj  rate  of  interest' earned 
on  the  funds,  namely,  £4  2s.  iid.  per  cent.,  as  contrasted  with 
£4  IS.  lod.  per  cent,  in  1916,  and  as  the  result  of  the  year's 
operations  the  as.sets  were  increased  by  ;^i98,66o  to  ;f  11,347,803. 
At  £399^353  the  investment  reserve  account  stands  unchanged. 

Policyholders  who  a  year  ago  took  out  aircraft  insurance 
policies  of  the  personal  accident  variety  at  a  premium  of  ;^i  per 
;^i,ooo,  payable  in  the  event  of  death,  with  subsidiary  benefits 
for  disablement,  are  now  receiving  renewal  notices,  in  which 
the  premium  appears  at  twice  the  amount  paid  last  year.  It 
was  only  the  earlier  applicants  who  obtained  their  cover  at 
£t,  as  after  the  first  rush  for  policies  the  rate  was  soon  raised 
to  £2,  and  possibly  the  bulk  of  the  business  transacted  was  at 
the  original  rate.  The  offices  are  believed  to  have  done  very 
well  out  of  this  class  of  business,  and  it  will  be  interesting  to 
see  whether  they  will  maintain  their  volume  with  the  new  rates 
in  force. 

A  new  undertaking  has  been  formed  as  a  subsidiary  company 
of  the  British  Trade  Corporation  with  the  object  of  providing 
insurance  against  bad  debts  abroad.  The  new  company  is 
entitled  the  Trade  Indemnity  Company,  and  its  subscribed 
capital,  which  is  entirely  owned  by  the  Trade  Corporation,  is 
^100,000,  of  which  ;f2o,ooo  has  been  paid  up.  The  endeavour 
of  the  new  company  will  be  to  assist  British  merchants  and 
manufacturers  in  developing  overseas  business  by  insurance. 
This  particular  form  of  insurance  was  developed  very  actively 
by  Germany  fti  the  interests  of  her  foreign  trade,  and  the  new 
undertaking  should  prove  of  considerable  value  to  British 
exporters,  as  it  furnishes  a  novel  combination  of  finance  and 
insurance. 

The  quinquennial  valuation  of  the  Scottish  Equitable  Life 
Assurance  Society  fell  to  be  made  as  at  March  i  last.  The 
valuation  has  been  made  on  the  same  basis  as  in  former  3'ears. 
A  revision  of  values  of  investments  showed  a  total  depreciation 
of  ;f444,ii6,  and  after  providing  for  this  and  for  loss  on  realisa- 
tions during  the  period,  the  surplus  was  ;i^64,i89,  which  has 
been  carried  forward  in  reserve,  the  exceptional  circumstances 
arising  out  of  the  war,  losses  by  death  of  members  on  active 
service,  the  largely  increased  income-tax,  and  the  uncertainty 
of  the  general  financial  outlook  precluding  any  division  of 
profits  on  this  occasion.  With  regard  to  intermediate  bonuses 
in  the  case  of  policies  which  become  claims,  and  which  of  late 
have  been  at  reduced  rates  owing  to  the  prevailing  conditions, 
it  is  proposed  to  continue  these  rates  in  respect  of  the  past  five 
years,  and  to  allow  a  rate  of  £1  per  cent,  for  each  year's  pre- 
miums, as  from  March  i  last,  in  the  case  of  whole  life  and 
endowment  assurance  policies  of  the  ordinary  participating 
class . 

The  society's  new  business  for  the  past  year  exceeded  that  of 
the  previous  year  by  about  ^50,000  nett,  while  claims  were  well 
within  the  expectation. 


Company. 

Current 
Estimate. 

LastAlI- 
in  Cost. 

May. 
lbs. 

(  +  )or(-) 
lbs. 

■3 
g 
S 

Aggregate 

(  +  )or(-) 
lbs. 

Aboyne  Clyde 

444.374" 

1/0.50 

36,049 

+     2,556 

11 

442,539 

+ 

35,481 

AUagar 

300,000 

1/4.30 

22,000 

—    6,000 

f,-^6 

— 

47,000 

Alliance 

208,394a 

16,220 

-1-        164 

— 

1,877 

Alor    Pongsu 

22I,0C0 

i/iTse 

16,400  1—     5,600 

S8.197 

— 

14,406 

Ampat 

230,000 

1/3.53 

13,150  1-     4,350 

132,520 

— 

3,980 

Anglo-Java  .. 

2i525.395a 

237,830  j  f      2,230 

1,195,953 

-1- 

105,630 

Anglo- J  chore 

302,1230 

1/3.20 

19.295 

-     4.494 

34,476 

— 

13,144 

Anglo  -  Malay 

1,410,000 

1/0.85 

98,082 

-   29,167 

485,503 

— 

161,700 

Anglo-Sum... 

940,000 

/lo| 

55.576 

—   23,242 

789,429 

— 

156,146 

Asahan 

550,000 

1/3.26 

48,130 

-1-    13,048 

405,211 

+ 

45.361 

As.  T.  Ceylon 

255,000 

19,228 

-     1,454 

253.472 

+ 

i7,9«o 

Ayer  Kuning  , 

650,066 

1/0.38 

3?,000 

—   19,000 

255,500 



67,771 

Bagan  Serai . . 
Bah  Lias 

413,182a 

/11.S2 

25,000 

—    11,426 

116,500 

— 

48,030 

640,000 

1/9.8S 

44,291 

+    18,094 

342,600 

+ 

203.732 

Baioe  Kidoel. 
Bakap 
Bambrakelly . 

47O,O00rt 

1/6.81 

52,000 

+    18,862 

116,000 

+ 

52.094 

285,000 

— 

20,400 

1-      2,750 

193.OCO 

— 

62,750 

239.023" 

1/4.96 

i8,8j3 

—     2,492 

34.888 

— 

8,118 

Bandar  Sum. 

440,000 

35,864 

+      1,649 

375.044 

+ 

51,316 

Bandjarsarie  . 

243,019(1 

1/2.48 

16,304 

-     5,766 

102,134 

— 

18,613 

Bandarapola  . 

285,6oon 

26,500 

-1-      3.000 

87,300 



8,700 

Bantardawa. . 

340,000 



7.554 

-  23,466 

245,918 



30,300 

Bantam 

915,000 

1/1.65 

97.479 

-1-    10,789 

894,195 

-f 

127,819 

Banteng 

434,000 

■/I.37 

26,340 

-     3.180 

26,340 

— 

3,180 

Batak  Rabit.. 

440,000 

1/1.64 

21,500 

-   13.249 

313.370 

— 

30,068 

Batang  Mai.. 

320,000 

20,407 

-     4,293 

105.513 

•- 

13,836 

Batu  Caves  . . 

— 

— 

48.993 

-   15.672 

216,981 

— 

85,214 

„    Matang . 

185,000 



I  ",334 

-     1,166 

162,792 

— 

10,080 

,,    Rata    .. 

495,030a 

I/I. 50 

28,700 

-     9.390 

441,830 



14,090 

„    Tiga    ., 



1/0.25 

4^,000 

—  18,000 

241,000 



73,500 

Be'uf  rtB'rn'o 

236,oo"fl 

1/5.75 

19,000 

+      3.000 

19,000 

+ 

3,000 

Bekoh 

540,000 

45.784 

+      3,284 

422,938 



15,140 

Beranang 

325,000 

i/2~65 

20,736 

—     5.976 

268,003 

~r 

6,156 

Bernam-Per'k 

300,000 

24,092 

-r      2,292 

238,931 

— 

17,119 

Bidor.. 

454.000a 

1/1.83 

19,200 

—   21,800 

37.230 

— 

40,770 

Bikam 

312,500 

I/5-7I 

23.175 

—    10,825 

135.975 

— 

14,925 

Bode  .. 

254,930a 

1/5.22 

27.023 

+      5,023 

99,77i 

— 

3,525 

Bradwall      . . 

442,142a 

1/2.58 

23,469 

-      3.498 

172,168 

+ 

8,230 

BraunstoTi    . . 

500,000 

/11.80 

30,700 

+          643 

304,600 

+ 

13.743 

Brit  BornPara 

208,330a 

i/i 

17,000 

-1-      2,250 

17,000 

f 

2,250 

British  Malay 

7<8,388a 

-51,500 

+       3.049 

271,896 

-f 

102,007 

Brooklands  . . 

620,000 

1/2.5 

44.527 

—     7,594 

585,906 

' 

41,377 

Broome 

450,000 

1/4.42 

38.914 

+     6,355 

372,899 

f 

23,555 

Bruas-Perak  . 

114,673a 

1/6.47 

10,999  i+    2,199 

24.835 

— 

952 

BukitCloh  .. 

229,000rt 

1/0.38 

31,504  !+  17.500 

116,504 

~~ 

26,524 

„    liok    .. 
„    Kajang. 

304,500a 

1/1-57 

26,000   -1-    2,500 

137.000 

■ 

21, 000 

940,000 

53,000   —  21,092 

798,810 

— 

63.669 

,,    Lintang 

280,000 

1/2  .73 

24,000    +        700 

236,520 

— 

15.970 

„    Mert'jm 

836,745a 

/10.74 

48,867  I—  19.859 

91.994 

— 

41.431 

„     Panj'ng 

550,000 

1/1.60 

35,000  ' —     4,000 

196,200 

— 

10,800 

,,     Rajah.  . 

950,233a 

/11.20 

39.542    —  24.786 

65,354 

— 

J^'lf 

M    Semba.. 

700,000 

J/465 

42,400    —   14,600 

245.115 

— 

64.885 

Carey  United 
Castlefield   .. 

450,000 

1/0.07 

27,700 

+     8,484 

275.501 

+ 

^I'l^* 

680,000 

36,400 

—     8,428 

482,687 

— 

38,845 

Cent.  Trav... 

230,275fl 

1/2.34 

19,322 

-     5,078 

49.927 

— 

10,603 

Ceylon     Para 

1,055,5840 

''44,674 

•f        825 

140,623 

+ 

11,011 

Ceylon  T.&R. 

235,031a 

1/4.31 

22,633 

+       5, '22 

106,536 

+ 

27,867 

Changkal-Sal. 

1,013,000a 

1/0.47 

51,000 

—    28,000 

277,000 

— 

92,000 

Ghemb  Malay 

457,102a 

1/1-37 

29,011 

-    11,378 

12S,122 

— 

39.510 

Cberas  ..     .. 

284,300a 

1/5.39 

20,500 

—    13,807 

107,000 

+ 

10,174 

Chersonese  . . 

689,6590!     /10.58 

49,662 

235,787 

— 

45,299 

Clieviot . .     . . 

700,000 

1/3-33 

35,000 

-    14,530 

184,060 

— 

35,120 

Chimpul 

250,000 

1/6.9 

19.323 

—      3.097 

246,729 

-1- 

"^•P^ 

Chota    . .     . . 

228,515(1 

10,226 

-     «,633 

61,986 

— 

26,612 

Cicely    ..     .. 

406,889a 

/11.44 

45.945 

+         796 

85.153 

613 

Cluny     . .     . . 

244,892a 

1/2.54 

14.703 

—     3.961 

79.230 

10,427 

Cons.    Malay 

917,590a 

49.850 

—    28,350 

308,765 

97 

Dalkeith       . . 

473,000 

1/4.78 

25,000 

—      4.000 

169,000 

^■ 

25.50« 

Damansara  . . 

690,000 

47.S65 

—  21,841 

264,100 

— 

83,319 

Dangan..     .. 

225,000 

— 

21,182 

-    2,886 

238,906 

-I- 

37,384 

Dennistown. . 

580,671a 

— 

41,416 

—    9,084 

192,726 

— 

43.138 

Deviturai     . . 

276,536 



♦13,640 

—    9,610 

101,870 

+ 

19,380 

Dimbula 

273,000 

— 

17.300 

-    2,798 

74.175 

— 

10,392 

Djasinga 

625,500 

1/6-57 

64,000 

+    17.058 

585.045 

-1- 

205,166 

Djember 

266,700a 

27,000 

-1-     3.200 

157,000 

•1- 

49,000 

Doranakande. 

200,000 

1/5.01 

+14,600 

—      I.OOO 

48,500 

-i- 

1,400 

Duff  Develop. 

804,470a 

1/7.40 

75.381 

+  10,381 

3«,779 

+ 

48,129 

Dusun  Durian 

790,371a 

/10.71 

50,376 

—    I.404 

263,884 

— 

41,939 

E.Ind.&Cey. 

210,000 

1/1.15 

*2l,457 

+      6,112 

69,817 

4- 

18,207 

Edinburgh  . . 

36o,(X)0 

/9.14 

20,000 

—    12,000 

122,000 

— 

s?'!"? 

Elphil    ..     .. 

252,000 

1/5.88 

17.114 

-  4,238 

82,798 

-1- 

6,848 

Emerald      . , 

565,700(1 

1/2 

31.500 

-  14,900 

142,200 

— 

9,550 

Eow  Seng    . . 

172,450(1 



'8,500 

—     4,750 

40,050 

— 

13,560 

Escot     . .     . . 

195,000 

1/5.51 

13,020 

-  7.980 

121,820 

— 

33.40* 

Fed.  Malay  S. 

1,845,000(1 

1/9.50 

68,000  ;—  66,000 

1,676,003 

~ 

35,000 

Fed.  Selangor 

402,706a 

/1 1. 68 

2I,9<X) 

—  13.735 

40,730 

34.630 

Galaha  ..     .. 

125,583a 

— 

9,345 

-1-     618 

34,640 

4- 

5.377 

Galang  Besar 

450,000 

— 

23.750 

—    11,250 

394,700 

— 

17,050 

Gan  Kee      . . 

200,000 

— 

9,500 

-   3,129 

147,525 

— 

10,01 1 

Caring  ..     .. 

1/5.38 

17,700 

—     500 

8 

165,226 

-t- 

42,026 

Gedong . .     . . 

232,000 

1/0.64 

15,840 

-   8,415 

7 

147,608 

+ 

1,412 

Gen.  Ceylon  . 

868,000 

1/1.27 

57.680 

—  27,816 

5 

274,798 

t 

84,112 

Glen  Bervie.. 

300,000 

20,052 

-    3.997 

8 

174.386 

4- 

5,613 

Glendon..    .. 

275,000 

— 

9,022 

—  12,141 

8 

132.933 

— 

32,073 

Glenshie!     . . 

488,940a 

1/2.18 

29,170 

-  12,741 

5 

156,840 

— 

3«,216 

Golconda     ., 

— 

/10.63 

31,787 

—  13,524 

189,492 

— 

73.467 

22,824 

Golden  Hope 

287,000 

1/4.80 

31,118 

•I-     9,085 

137,790 

4- 

Grand  Cent.. 

4.759,405a 

1/0.72 

256,384 

-152,898 

1,604,701 

— 

146,040 

Gula  Kal'p'g. 

r, 066,000 

/Hi 

82,400 

-  31,669 

430,600 

— 

138,012 

Harpenden  .. 

5il,l07a[    /ll.4g 

24,600  j—  10,830 

107,750 

— 

79.971 

Ilayoep..     .. 

512,405(1       — 

40,957 

—     2,922 

212,212 

+ 

14,196 

Heawood     . . 

275,000     1/1.5 

15,927 

-    4,142 

88,727 

7.170 

Hewagam    . . 

33,000 

-  24,500 

165,500 

-1- 

20,300 

Hid.  Streams 

242.739«j       — 

15,000 

—    4,000 

80,500 

— 

22,588 

Highlands    . . 

r, 142,675  1  /11.75 

92,607 

-  13.762 

424.356 

— 

114.479 

Inch-Kenneth 

440,000     1/3.71 

25,200 

—  11,150 

431,550 

— 

6,030 

insuHnde 

330,000      1/0.39 

21,100 

—    2,400 

245,200 

f 

10,690 

Java  Amal.  . , 

315,0000 



54,700 

+     2,700 

316,700 

+ 

28,403 

Java  R  &  Prod 

620,000 

_ 

36,900 

-1-     2,100 

180,000 

+ 

24.700 

Java  Para     .. 

265,692a 

1/1.20 

27,000 

—  19,674 

192,095 

4- 

23.474 

Jeram    . .     . . 

261,509a 

— 

10,500 

-    6,297 

17,388 

— . 

14.075 

J  chore  Para. . 

190,362a 

1/2.14 

19,700 

+     3,0.0 

192,500 

-f- 

19,068 

„   Rub.  Lds 

1,147,348a 

J/3j 

74.620 

-  18,355 

487,550 

+ 

84.024 

Jong    Lander 

680,000 

42,848 

—     9.69+ 

553.0S4 

— 

53.216 

Jugra    Estate 

416,5360 

1/0.60 

27,376 

51,330 

— 

4.654 

Jugra  Land  .. 

1,169,345" 

/10.02 

48,159 

—  27,028 

48,159 

— 

27,028 

Juru  Estates.. 

165,200a 

1/1.88 

6,700 

-     7.800 

6,700 

— 

7,800 

Kajang  . .     . , 

391,0000 

1/4.43 

27,210 

—     2,090 

142,670 

— 

7.430 

Kali  Glagah.. 

224,617a 

17,430 

-       970 

36,530 

-^ 

1.630 

Kamp  Kua't'n 

362,500a 

1/2.07 

23,000 

—    6.500 

128,500 

— 

20,500 

Kaniuning    .. 

810,000 

1/1.49 

41,420 

—  25,610 

724,370 

— 

117.240 

Kapar  t'ara  . . 

1,075,138, 

/10.91 

67,810 

+     4,492 

404.215 

+ 

622 

Karak     ..     .. 

241,0190 

14.923 

-     7,554 

86,454 

9,6*0 

Kasintoe 

583,6750 

1/8.56 

37,000 

—   26,040 

225,275 

27.103 

6oo 


Zbc  Jnvestoce'  IReview. 


Jl\F,    22,     1918. 


Kawie  Java  . . 

543.57on 

54,008 

+     i.ooS 

2 

107,482 

+ 

4.782 

Kepitigalla   .. 

588,650(7 

— 

39,333 

-    8,406 

2 

79.783  '' 

— 

10,262 

Kepon^    .     . . 

334,500a 

— 

20,500 

— 

5 

115.500  1 

— 

5.000 

Kerala    ..     .. 

250,000 

— 

17.056 

—     7.955 

4 

50,189  1 

— 

17.885 

KhotaTamp'n 

184,400 

X/3.30 

14.000 

—     3.500 

4 

51,000 

— 

10,300 

Killinghall    .. 

344,000        — 

18,867 

-     8,495 

II 

261,807 

— 

30,675 

Kimanis 

390,000a    i/g.sj 

29,60c 

-1-     1,600 

5 

168,800  1 

+ 

22,300 

KintaKellas.. 

553,385"       -^ 

34,400 

-     5,813 

2 

62,545 

14.761 

Klabang. .    . . 

301,4120    1/4.30 

".335 

—  13.959 

5 

8o,6«l 

— 

44,621 

Klanang 
KomboK 

502,010(1     l/t.02 

24,274 

—  10,696 

5 

127,064 

— - 

53,796 

594,000      /11.88 

29,500 

—  22,230 

5 

165,050 

— 

68,460 

Kuala     Klang 

200,000         /IO.80 

10,185 

-    5,236 

8 

102,897 

'- 

32,453 

,1     Kubu.. 

158,950      — 

10,360 

—     2,285 

II 

125,529 

— 

19.510 
22,870 

„    Lumpur 

1,700,000    1/2.34 

89,c(X) 

-  53,560 

—  8,5co 

II 

1,502,720 

— 

„     Nal    .. 

187,800(1 1  1/2.36 

14,000 

5 

88,000 

— . 

10.000 

„     Pahi.. 

202,400       1/2.95 

2I,C<-0 

+     i,7M 

5 

96,213 

-1- 

21,151 

n  Selangor 

505,000       /8.5 

46,692 

+     1,339 

f 

239.233 

— 

20,214 

Kurau     . .     . . 

283,^00(1    /II.75 

20,100 

-     3.272 

99.350 

— 

20,187 

Labu      . .     . . 

970,000 

1/I.72 

47,200 

—  2S,S8o 

5 

294,000 



4.970 

Lanadron     . . 

1,121,000 

1/3-53! 

85,899 

-  35,352 

5 

495.644 

— 

103,892 

Langat   River 

— 

26,986 

4-           76 

5 

144,471 

+ 

17.349 

Langen,  Java 

735,000 

1/3.96 

82,228 

—  35,228 

9 

593,034 

— 

12.333 

Langkat  Sam. 

400,480 

29,000 

—     1.232 

5 

172,209 

■f 

ii,c6i 

L'ngk'n  N.Br. 
Ledbury 

290,000 

1/34 

22,500 

— 

2 

47.000 

— 

691,496a 

/11.74 

45,063 

—   10,233 

5 

200,73) 

— 

78.043 

Lendu   ..     .. 

207,6220 

— 

15,520 

—     2,500 

2 

28,500 

— 

7,100 

Linggi   ..     .. 

2,026,857 

1/2.32 

135,373 

—  61,460 

5 

75'*.032 

~~ 

194,790 

Locnnagar   . . 

175,000 

/II.62 

59 

—   13,001 

3 

27.467 

— 

31,117 

Lon.  .Asiatic. . 

1,250,000 

1/5.27 

80,111 

-  47.848 

5 

464.127 

— 

167,103 

Lumut   ..     .. 

— 

/I 1-54 

76,400 

—     3.600 

8 

680,100 

— 

23,000 

Madingley    , , 

199.731" 

1/2.52 

12,018 

-     3,817 

3 

34.239 

_ 

13,066 

Maiedie. 
Maha\va!e    . . 

170,243 

1/11.62 

11,259 

i-      2,404 

11 

143.261 

+ 

17,367 

320,000 

— 

22,402 

—     3. '33 

5 

84,893 

— 

20,292 

Malacca 

4,043,8oon 

1/2. 12 

244,400 

—  77,500 

5 

1,305,300 

— 

242,650 

Malayalani  . . 

1.354.179(1 

1/4.67 

110,497 

-   18,089 

5 

305,896 

+ 

9,870 

Malaysia 

400,000 

1/3.48 

29,750 

-     4,233 

139.426 

— . 

30.859 

Malay  PI'nfrs 

337,366(1 

1/4 

23,500 

—     4,600 

8 

2ii,7t8 

— 

14.760 

Manch'rN'.B. 

548,923a'      — 

48,489 

+      7,850 

2 

92,176 

+ 

15,618 

Membakut   . . 

488,000a 

1/3 

33,500 

1-      5,500 

9 

228,500 

— 

MerguiCrown 

559,625a 

35.!O0 

—     9,coo 

2 

84.353 

— 

5-353 

Merlimau     . . 

1,470,236a 



108,380 

+      5.780 

5 

616,166 

+ 

62,805 

Monerakelle  . 

155,000 

1/6.32 

13.000 

-     8,436 

II 

195,101 

^- 

10,025 

Mount  Austin 

2,230,05801  1/4.3 

178,900 

+    27,363 

2 

351,930 

-h 

49.913 

Nagolle..     .. 

— 

1/3.04 

21,116 

—   ig.500 

5 

186,755 

-i- 

10,497 

KarboroUfjh. . 

278,100(1 

1/5.8 

18,000 

—     9,000 

II 

256,100 

+ 

6,303 

NebodaCey.. 

500,000 

35,220 

■t-      5.285 

5 

169,220 

11.350 

N'wCroc.Riv. 

— 

1/1.407 

38,915 

—     6,960 

5 

230,295 

— 

12,115 

Nordanal     . . 

— 

1/3-55 

38,529 

—   15,101 

5 

232,102 



38,799 

N.  Borneo  St. 

213,5000 

12,800 

—     5.200 

5 

65,600 

— 

33,900 

N.  Hummock 

750,000 

1/1.41 

44.348 

—   12,476 

n 

584,407 

— 

39.837 

N.  Labis     .. 

350,000 

1/7-05 

18,100 

-     3.882 

11 

310,929 

+ 

93.779 

Oriental 

716,450a    1/3.30 

*40,000 

—    11,040 

4 

i7»,ooo 

— 

35.989 

Padang   Jawa 

243,2840 

— 

13.242 

-     5.492 

2 

22,933 

— 

11,646 

Panawatte    . . 

617,2090 

— 

31.092 

-   15,203 

5 

164.773 

— 

30,068 

Panagula      . . 

360,000 

1/2.306 

21,741 

—     3,005 

5 

87,891 

— 

3,298 

Pantiya  . .     . . 

206,l0O:i 

16,010 

990 

5 

75.650 

+ 

2,795 

Parambe 

253,842a 

— 

11,231 

—     9.749 

5 

60,179 

— 

29,780 

Pataling 

584,000 

1/0.14 

38,782 

-   19,672 

5 

182,241 

— 

90,515 

Pegoh    . .     . . 

600,000 

— 

42,880 

-     9807 

8 

— 

Pelmadulla  .. 

8(3,19711 

— 

45,042 

—  28,606 

5 

252,222 

— . 

12,335 

Perak    . .     . , 

53'.568a 

/I 1-38 

32,547 

-   I4,39g 

2 

63.959 

24,891 

Permas  . .     . . 

— 

1/5-3 

18,250 

-     1,855 

11 

218,118 

— 

25,915 

Pilmoor 

353.500(1 

1/1.41 

2o.g8o 

—     7,o;o 

11 

335,650 

■f 

12,440 

Port  Dickson 

672,350a 

1/4-85 

46,980 

—     7,7<:o 

2 

80,540 

21,340 

P.P.K 

348,228a 

/11.89 

30,340 

—     3,116 

5 

117,839 

1,102 

Preanger 

329,242a 

— 

15.303 

-  14,346 

11 

250,254 

49,963 

Prye       . .     . . 

240,490a 

— 

i6,g03 

—     3,300 

2 

27,200 

11,980 

Rani  Travan.. 

929,9310       — 

58,320 

—  49,929 

4 

208,158 

_ 

73,818 

Ratanui..     .. 

264,0000       — 

18,000 

—     6,500 

8 

171,203 

— 

29,561 

Rangoon  Para 

400,000         — 

34,500 

—      2,0C0 

5 

141,000 

— 

3,300 

Rembia  . .     . . 

455,000         — 

24,453 

-    18,438 

8 

215,278 

— 

13,734 

Ribu      . .     . . 

296,8730 

48,690 

28,4C0 

■••       4.885 

5 

124,280 

-f 

15,680 

Rim       ..     .. 

433,500a 

1/3-20 

ig,c<x) 

—      8,700 

2 

32,200 

— 

19,300 

Riverside     . . 

300,000 

1/0.58 

25,600 

+          600 

5 

133,700 

— 

18,300 

Rubana'..     .. 

800,671a 

1/0.64 

44.000 

-    15.743 

I 

44,000 

-L 

15,743 

R.  Es.  Ceylon 
R.  Es.  Johore 

472,004a 

— 

38.752 

-♦•        375 

5 

158,902 



6,147 

577.800 

1/3.64 

39.500 

—  22,184 

5 

219,530 



62,323 

R.  Es.  Krian.. 

465,500a 

1/6.27 

24,000 

-  15,121 

5 

111,00c 

+ 

69,93a 

Rubber  Trust 

520,413a 

1/6,10 

56,538 

+    22,6l6 

5 

302,412 

*■ 

141,791 

Sagga     ..     .. 

502,5oooj  1/2.82 

♦29,000 

—    3.000 

9 

369,000 

_ 

23,000 

SampangJava 

136,300a     1/6 

•16,849 

-          77 

4 

74,755 

+ 

17,428 

Sapong  . .     . . 

338,cwoa    1/0.38 

28,000 

—     1.519 

5 

142,000 

+ 

5,068 

Sapulm'k'nde 

400,000  i  1/5.51 

23,276 

-  18.538 

5 

128,713 
127,568 

24,073 

St.  George  . . 
Scot.  Malay.. 

427,000        — 

23.854 

—  16,410 

5 



43,227 

—            /10.13 

34.000 

—  11,000 

5 

195,000 

— 

46,000 

Seafield. .    . . 

832,400         — 

58.074 

—  I7,8g6 

5 

318,068 

^ 

91,928 

Seaport..     ,. 

435,000  !    1/1.52 

21.832 

—  10,269 

11 

376,366 



12,423 

Sedenak 

653,000  1     —    ■ 

42,187 

—     1,265 

7 

351.941 

•H 

49,889 

Segamat 
Sekong  . .     . . 

450,000 

l/t.185 

24,800 

—  19,850 

5 

136,270 

45,195 

162,153 

1/8.8 

13,000 

—       500 

10 

137,378 

— 

518 

Selaba  ..     .. 

528,000 

1/5-34 

31,396 

—  18,172 

5 

199,922 

— 

56,621 

Selangor 

828,0930 

/9.52 

51,724 

—  11,622 

5 

290,081 

— 

48,384 

„        Eiv. 

571.800 

1/2.68 

26,533 

-  13,867 

5 

212,147 

— 

48,423 

,.        Utd 

220, oca 

1/3.17 

l6,25-5 

+     1.150 

2 

29,210 

— 

1,070 

Seletar  . .     . . 

210,000 

14.44  ■> 

—     1,780 

1  10 

166,055 

^ 

6,080 

Sembilan 

551,200       I/4l 

37.5'..') 

—    4.199 

10 

396,644 

— 

15.626 

Sempah . .     . . 

240,123a        — 

14.(09 

—     9.3j6 

2 

26,149 

— 

20,227 

Sendayan 

H'i' 

17,652 

—   13.828 

8 

279.381 

+ 

24.371 

Sengat   . .     . . 

515,000  1/0.80 

31.000 

—   15.COO 

11 

443. 5S7 

+ 

26,587 

Sennah  . .     . , 

l,7co,ooo  !  1/3.88 

8g.77i 

-  46,231 

11 

1.471.834 

-^ 

57.803 

Serdang  Cent 

355,535".      — 

2o,7a6 

-     6,590 

5 

'27,793 

6,7yj 

Seremban    . . 

974,750a.    /loi 

69.974 

-     8,825 

5 

360,382 

7 

8,905 

Shelford       . . 

177.650  1    1/0.67 

23.771 

■f      4.519 

5 

118,292 

+ 

14,826 

Siak       . .     . . 

220,800         — 

17.812 

-     8,584 

5 

100,181 

— . 

21,682 

Sialang  , .     . . 

1,386,6440;  1/1.76 

76,504 

—  34.327 

4 

355,266 

— 

93,881 

Sing.  Para  .. 

675,000  .  1/1.77 

42,644 

—   10,877 

11 

518.741 

— 

65,780 

„       United. 

515,000  ;  1/0.84 

40,500 

+     2,300 

11 

Straits  Rub... 

2,316,052 

1  1/0.58 

161,000 

—  92,8go 

5 

873.0:0 

— 

330,020 

S.S.  Bertam. 

1,350,000 

i/o.Sg 

88,000 

—     6,000 

2 

153.000 

_ 

26,000 

Strathmore  . . 

436,000 

/9.18 

27.392 

—  lo,3g4 

5 

141.754 

— 

49,269 

SumatraCons. 

701,560a 

/11.85 

43.000 

—     1,000 

I 

43.000 

— 

1,000 

,,       Para 

729,(»oo 

1/136 

54.000 

—     2,480 

11 

805,620 

-f 

137,460 

M      Prop. 

235,600 

1/4.12 

24,000 

—  10,200 

I 

24,000 

— 

10,900 

Sungei  Bahru 

362,000 

— 

25.623 

+    3.g57 

II 

288,830 

-t- 

40,732 

„    Batu  . 

286,150a 

1/417 

20,000 

—    2,oig 

5 

111,500 

+ 

1,924 

,,     Buaya 

501,0100 

1/2.62 

36,180 

—    11,120 

11 

482,930 

+ 

27.840 

„     Buloh 

600,000 

/I I. 80 

39.000 

—  11,600 

5 

214,000 

— 

54.403 

„    Choh 

552,965a 

1/2.85 

32,155 

—  14,421 

5 

178,647 

-. 

29.718 

„    Kapar 

844,7000;  / 10.069 

52,800 

-  13.900 

5 

351,800 

— 

43.400 

„    Kari.. 

360,000  j      — 

23.065 

-  14.035 

II 

296,250 

— 

46,810 

„    Knan 

618,4920!  /10.52 

42,212 

-     7.788 

5 

194,472 

— 

66,521 

„    Kruit 

-       i  1/2 

30,800 

—     5,810 

1    5 

154,870 

— 

17,960 

„    M't'ne 

304,81301  /n.8o 

29,239 

+     3.974 

5 

99.566 

— 

28,658 

„    Purun 

307,993";  J/424 

'       17.500 

-     5.9;° 

i    5 

95.236 

^ 

15.776 

„    Salak 

727,3"0ai  1/0.97 

j      48,900 

+     7.900 

5 

245.000 

-~ 

4.400 

,,     Si^ut 

190,000   ;   1/ 

i        •J.S44 

—        551 

11 

172,388 
184.644 

-H 

11,618 

„     Way. 

>      452,298       1/0.123 

31.054 

-  15.155 

5 

5 1. 398 

Sung,  Chumoi 

560.000  1  t/3.34 

27,000 

!-  15,900 

11 

427,474 

— 

"'tU 

Sunnygama.. 

!     984,6201 

>       — 

1     "31,436 

-        653 

2 

!       111.776 

— 

Taiping. .  . . 
TaliArtr  .. 
Tamiang 
Tangea  Batu 
Tan^kah 
Tanj.  Malim.j 
Tandjong  . .  j 
Tangoel  ..| 
Tebrau..  .. 
Teekoy..  ..; 
Telogoredjo  .i 
TenomB'meo' 
Third  Mile  . . 
Tremelbye  . . ' 
Trolak  ..  ..I 
Ulu  Rantau.. 
U.  SuaBetong 
U.  Serdang  . . 
U.  Sumatra.. 
U.  Teraiang. . 
Uva  .... 
Vald'Or  .. 
Victoria 
Windsor 
Woodend  . . 
Yam  Seng  . . 
Yallyantota  . . 


700,000 
893^559" 

138,000 
530,000 

1,400,000 

1.595.000  I 
308,000  j 

1,046,480  I 
250,000 
854,0200} 
480,000  j 
198,83501 
750,000  I 
285,500  i 
285,0660 
930,724a 

3.395.000 

1.137,750 

8oj,ooo 
185,692a 
360,(300 
250,000 
404,2000 
256,772a 


520,8230!      — 


/10.29 
1/0.25 


1/641 

1/5.50  i 
1/J.18  ; 

1/1}  . 
1/10.70 
1/5.12   . 

1/3.06 

1/0.54   I 

l/2i 
I/I.16 

1/1.15 

1/3-96 

1/2 

1/5.80 


1/4.49 
1/3.18 


50,794 

+ 

2 

66,500 

16,823 

43.750 

24,293 

11,666 

— 

3,334 

34,77« 

— 

5,021 

83,000 

— 

32,810 

92.337 

— 

21,302 

35.530 

f 

7.641 

77.406 

4- 

23.708 

13.640 

t 

3.070 

86,000 

— 

40,000 

— 

4.000  < 

23.000 

+ 

s.ioo ; 

32,500 

— 

11,000  1 

24,377 

— 

3,129  1 

16,121 

— 

8,725 1 

55,230 

— 

23,853  ! 

194.716 

— 

68,252 

71,280 

— 

7.470  I 

47,754 

i«,o66  1 

12,506 

— 

1.142 

21,000 

— 

7.0=0 

19,120 

— 

1,880 

27,700 

— 

6,198 

13.142 

— 

9.193 

17.273 

-r 

17.293 

41,155 

— 

1.275 

1 1 

I 

8  I 

I: 


611,378 
68,500 
505.578  ' 
61.023 
345.509 
1,242,310 


II 1 1,115,327 ' 
II  I  328,221 
II 1 739.877 


441,000 
224.000 
118,987 
527,700 
214.583 

99.935 

251,668 

2,117,912 

361,910 

582,869 

73.809 
143.450 
246.595 
141,103 

70,234 
195.504 
176,753 


6t,04» 
16,823 
18,509 
12,713 
58,221 

132,620 

IJ8,«99 
65,806 
to,3*2 

8i,9»o 

9,5«o 

53.452 

103.300 

7,670 

7,969 

111,01" 

381.1s; 

20,203 

71,558 

2,046 

11.7:"' 
89,019 
15.74» 
14.886 
45.35' 
7.07" 


o  Last  year's  crop. 


'  For  April,  or  previous  month. 


Viscount   Grey's  League  of  Peace  and  Mr. 
Runciman's  Committee. 

A  short  pamphlet  on  the  League  o£  Nations  has  been  written 
by  Viscount  Grey  of  Falloden  and  is  publi.shecl  by  the  Oxford 
University  Tress  at  the  price  of  threepence.  It  will  be  read, 
and  should -be  read,  with  the  utmost  interest  by  all  classes  of 
the  people,  for  no  man  commands  a  deeper  respeet  from  the 
countrymen  than  Viscount  Grey.  We  shall  probably  have  some- 
thing to  say  about  his  contention  that  Germany  must  be  in- 
cluded in  any  League  of  Xations  which  comes  to  be  established 
after  this  war,  but  content  ourselves  meantime  by  assenting  to 
the  proposition — with  reservations.  The  Germans  are  too 
numerous  a  people  on  the  earth  to  be  boycctted  for  all  time  by 
the  rest  of  the  world,  and  if  a  new  civilisation  is  to  be  born,  it 
must  not  be  founded  on  slavery  anywhere.  But  before  Ger- 
many can  resume  her  place  amongst  the  civilised  and  progres- 
sive peoples  she  must  purge  herself  of  the  spirit  of  military 
savagery,  give  guarantees  for  good  behavii^/ur,  and  make  re- 
paration for  the  crimes  and  robberies  her  military  taskmasters 
have  led  her  to  commit.  The  time  for  sweet  talk  of  Christian 
fellowship  is  not  nearly  at  hand  j'et  so  far  as  Germany  is  con- 
cerned. 

More  to  the  purpose  is  the  final  report  of  Mr.  Rui'ciman's 
Committee  on  the  Position  of  Shipping  and  Shipbuilding  In- 
dustries after  the  War,  which  has  also  just  been  made  public, 
and  deserves  much  more  attention  at  our  hands  than  the  le- 
quirements  of  the  printer  and  paper-maier  permit  us  to  give. 
We  can  but  note  this  point.  "  The  Committee  considers  that  no 
peace  would  be  satisfactory  which  did  not  enforce  the  sur- 
render of  enemy  sHipping  and  inflict  drastic  and  exemplary 
punishment  for  the  enemy's  crimes  at  sea."  That  ts  surely  an 
essential  preliminary  to  any  true  peace,  and  .we  are  sure  that 
whatever  our  old  diplomatists  in  whose  school  Lord  Grej-  has 
been  bred  may  think  aboiit  the  war,  its  crimes  and  miseries, 
the  new  diplomats  of  the  United  States  will  say  ditto  to  this 
Committee's  stipulations. 


The  Week  in  Mines. 


Although  on  the  whole  the  tone  of  the  mining  markets  has- 
been  more  cheerful  this  week,  activity  has  been  confined  to  a 
few  specialities,  such  as  Tauganyikas,  De  Beers,  and  Broken 
Hills.  The  South  African  market  has  been  under  the  influence 
of  the  demand  for  a  general  increase  in  white  employees' 
wages  on  the  Rand,  and  the  possibility  of  increased  taxation. 

South  .\nd  West  Africans. 

As  a  consequence  there  has  been  little  disposition  in  the 
market  to  increase  commitments  pending  a  solution  of  these 
questions,  and  also  the  question  of  enabling  the  low-grade 
mines — of  which  Mr.  Wallers  states  there  are  17 — to  continue 
working  even  under  existing  circumstances.  Meyer  and  Cha; 
ton  were  unaffected  by  the  declaration  of  a  dividend  of  los.  pti 
share,  the  same  as  a  year  ago.  but  2s.  less  than  was  announced 
in  December,  but  Sub-Nigels  at  i  15-32  and  Simmer  and  Jacks 
at  5s.  3d.  weakened  on  the  reduction  in  their  half-yearly  divi- 
dends.  ^"an  Ryns,  for  the  same  reason,  have  declined  -jV  to 
31-32,  but  Robinson  Deep  A  .shares  remained  at  i-V.-  despite 
the  fact  that,  although  no  dividend  was  declared  in  December, 
only  2S.,  instead  of  4s.,  per  share  is  to  be  paid  for  the  current 
half-3-ear.  \illage  Main  Reefs  have  risen  is.  6d.  to  13s.  6d.  on 
the  report  and  dividend  declaration,  and  Crowns  at  1  31-32 
and  Gold  Mines  Investments  at  23s.  gd.  are  higher.  Con- 
solidated .Mines  Selections  have  fallen  is.  3d.  to  25s.  gd.,  and 
Modder  Deeps  ^  to  758.  but  New  Modders  have  improved  to 
23-J.  In  the  Rhodesian  section,  Tanganyikas  have  been  actively- 
supported  on  the  announcement  that  the  January  i  coupon  on 
the  debentures  will  be  paid  .next  riionfh,  and  are  i  higher  at 
3  21-31.  Zambesia  Explorings  have  risen  2s.  pd.  to  26s. 
-Vmong  diamond  shares  De  Beers  deferreds  have  risen  Ji  to 
143^,  in  connection  with  the  dividend  declaration,  which 
makes  the  total  distribution  for  the  year  25s.  per  share,  against 
20s.  for  1916-17.     Premier  deferreds  have  risen  |  to  6ji,  and 


June  22,  191S. 


Cbe  investors  iRevlew, 


601 


Pagers  |  to  4,%.     Of  the  West  Africans,  Taquahs  rose  1-32  to 
J  on  the  dividend  announcement. 

CoppEK  ANi>  Miscellaneous. 
Copper  shares  have  been  fairly  firm,  with  Mount  Lyells  in 
fair  demand  on  colonial  account,  the  price  rising  is.  6d.  to  29s. 
Broken  Hill  shares  have  been  in.  roquest,  especially  South 
Silvers,  which  are  J  higher  at  12.  Norths  at  3^,  British  at 
50s.,  and  Block  Tens  at  i  29-32  are  all  higher.  Russian  shares 
have  been  in  some  demand,  notably  Kyshtims  at  20s.  and 
Tanalyks  at  31-32.  Of  the  Americans,  St.  John  del  Keys  im- 
proved to  17s.  gd.  on  the  report,  while  Camp  Birds  have  re- 
lapsed to  ris.  Mining  Corporations  of  Canada  have  fallen  is. 
to  14s.  on  the  announcement  that  a  portion  of  the  plant  is  being 
used  for  treating  more  tailings,  which  will  temporarily  in- 
volve a  reduction  in  output.  In  the  Tin  group  Geevors  have 
risen  is.  6d.  to  23s.  3d.,  and  Tronohs  J  to  2. 


MINING  NEWS, 


Village  Main  Reef.— During  191 7  there  were  milled  322,950 
tons  as  against  333,885,  the  yield  being  ..$^447,976  against 
^^480,979.  The  3'ield  per  ton  was  27s,  8d.  against  28s.  9d. 
Costs  averaged  19s.  against  19s.  id.  per  ton,  and  consequently 
the  rate  of  profit  was  8s.  Sd.  against  9s.  8d.  per  ton.  Profit 
from  working  amounted  to  ^140,530,  a  decrease  of  ^21,099.  The 
nett  profit  was  ;fi2o,3o8  against  ^106,507.  Dividends  amount- 
ing to  4s.  per  share  have  been  paid  against  5s.  for  1916, 
^^42,775  against  ;i"36,253  have  been  written  off  investments,  and 
^180,999  against  .^^197, 865  is  carried  forward.  The  property 
is  now  almost  completely  developed.  Reserves  of  ore  are  esti- 
mated at  628,150  tons,  valued  at  7.1  dwts.  per  ton,  a  decrease  of 
122,054  tons  in  quantity  and  of  0.5  dwt.  in  value.  The  life 
of  the  mine  is  estimated  at  between  two  and  three  years  from 
January,  igi8.  An  interim  of  2s.  per  share,  tax  free,  has  been 
declared  for  the  current  half-year. 

Apex  Mines. — This  company,  having  disposed  of  its  gold 
mining  interests,  is  purely  a  colliery  concern  now.  Last  year 
its  output  was  increased  b}'  15,420  tons  to  196,449  tons,  and  its 
nett  profit  was  ;^22,o6i  larger  at  ^24,288.  Dividends  amount- 
ing to  i2j^  per  cent,  against  10  per  cent,  have  been  paid,  and 
^'28,518  is  carried  forward  against  ^^25,204. 

Anglo-French  (Transva.u.)  Navig.^tion  Coal  Estates. — The 
output  of  this  company  in  1917  decreased  from  374,559  tons  to 
370,265  tons,  but  the  nett  profit  was  ;^28,322  against  ;^22,4i2. 
Preference  dividends  have  absorbed  ;^i  1.530,  depreciation  and 
e.xtensions  ;^3,ooo,  and  ;^23,223,  against  ^10,631,  is  carried 
forward.  Interest  due  to  the  preference  shareholders  to 
December  31,  1917,  has  been  fully  met,  and  the  directors  antici- 
pate being  able  to  make  a  distribution  on  the  ordinary  shares 
at  the  end  of  the  present  financial  3-ear. 

Rand  Collieries. — During  1917  expenditure,  including 
interest  on  loans,  exceeded  the  revenue  by  ;f  13,041.  The  com- 
pany's debt  to  the  Genera!  Mining  and  Finance  Corporation 
has  been  reduced  from  ^215,010  to  ^'203,250,  refunds  having 
been  made  from  time  to  time  during  the  year  out  of  the  proceeds 
of  sales  of  machinery,  plant,  and  stores.  The  mine  is  still 
closed  down,  but  in  view  of  the  increased  activity  on  the  Far 
East  Rand  the  possibilities  of  putting  fresh  energy  into  the 
property  after  the  war  seem  more  favourable,  especially  with  the 
passing  of  the  Mining  Leases  Bill. 

Mountain  Copper. — The  accounts  for  1917  show  that  .1^43,932 
has  been  charged  for  depreciation,  ^19,810  for  taxes,  and  that 
the  debenture  interest  absorbed  ;^45,ooo.  After  making  these 
deductions  a  credit  balance  of  ^'69,674  is  to  be  carried  forward, 
subject  to  British  income-tax  and  excess  profits  duty.  Last 
year  ^^50,000  was  placed  to  the  general  depreciation  fund,  and 
;^i 38,149  was  carried  forward. 

Glencoe  (Natal)  Collieries. — Although  the  output  decreased 
from  186,800  tons  to  140,955  tons,  the  profit  in  1917  was 
^13,385  larger  at  ^44,441,  owing  to  the  higher  prices  realised. 
'I'he  nett  profit,  after  providing  for  depreciation,  was  ;if34,972 
against  ;S23,o67.  Dividends  amounting  to  5  per  cent,  have 
again  been  paid,  and  ;^37,75o,  an  increase  of  £13,0172  is  carried 
forward.  Shortage  of  railway  trucks  was  mainly  responsible 
for  the  reduction  in  output. 

Bvena  Tierra  Mining.— The  report  for  191 7  shows  a  nett 
loss  of  ;f 3,607,  but  after  allowing  for  income-tax  refunded, 
amounting  to  ;£3,759,  the  credit  balance  carried  forward  is 
reduced  from  only  ^'5,826  to  £s,7i7'  Political  conditions  in 
the  State  of  Chihuahua  made  it  impossible  to  operate  the  mine. 
Reserves  of  ore  remain  at  281,500  tons. 

Ropp  Tin. — The  report  for  191 7  states  that  the  ^30,000  of 
First  Mortgage  debentures  has  been  reduced  to  ^f  17,960  and 
the  second  debentures  to  £1^1,000,  which  will  be  paid  off  on 
December  31,  1918.  A  sum  of  ^^20,000  lent  to  the  company 
has  been  reduced  to  ;^i2,ooo.  The  output  of  tin  was  670  tons 
against  467  tons,  and  the  profit  was  ^36,009  against  £iS,S^- 
The  dividend  is  raised  from  is.  (25  .per  cent.)  to  33.  (75  per 
cent.)  per  share,  less  tax,  and  ;ii2,o77  against  ;iii3,i34  is 
carried  forward.  Practically  no  prospecting  has  been  done, 
and  the  ore  reserves  amount  to  ii,S73  tons,  liolh  dredgers  are 
now  in  operation,  and  for  the  first  four  months  of  this  year  the 
output  was  337  tons. 

Namaqua  Copper. — Tiie  report  for  191 7  states  that  only  a 
comparatively  small  proportion  of  the  copper  output  was  sold 
before  the  Government  price   was  reduced   from  ;^i47  to  ;£i2i 


per  ton.  Thus  while  in  1916  profits  amounted  to  ;^64,96i,  the 
result  of  last  year'sr  operations  was  a  reduction  in  the  balance 
carried  forward  from  ;^i6,24i  to  ;£6,882.  The  board  has  sus. 
pended  all  principal  operations  until  the  copper  produced  oan 
be  brought  to  market  with  advantage.  It  is  hoped,  however, 
soon  to  secure  a  suflScient  supply  of  coke  in  the  current  year 
to  keep  smelting  in  continuous  operation,  or  nearly  so.  Re- 
serves of  ore  have  been  reduced  by  10,701  tons  to  40,563  tons, 
worth  2,368^  tons  of  fine  copper,  a  decrease  of  591  tons.  It  is 
many  years  since  this  company  was  unable  to  pay  a  dividend. 


PUBLIC     INCOME     AND    EXPENDITURE. 


The  following  are   the   receipts   into  and   issues  out     of    the 
Exchequer  between  April  1,  1918,  and  June  15,  1918: — 


Estimate 

for  the 

Year 

1918-1919. 


Total  Receipts 

into  tlie 
Excbequerfrom 
April  I,  1918,  to 

June  15,  1918. 


Total  Receipts 

into  the 
Exchequer  from 
April  I,  1917,  to 

June  16,  1917. 


Balances   in    Exchequer   od 

April  I— Bank  of  Engl.Mld  , . 

Bank  of  Irelaud    . . 


Revenue. 

Customs  

Excise  

Estate,  &c.,  Duties 

Stamps 

Land  Tax 1 

House  Duty    f 

Property  and  Income  Tax  and 

Super  Tax   

Excess  Profits  Duties,  &c 

Land  Value  Duties 

PostOflice  

Crown  Lands 

Receipts    frocE.    Sundry 

Loans,  &c 

Miscellaneous 


if 

19.361-578 

1,668,4^2 


21,030,030 


18,240,000 
8,801,000 
5,253,000 
1,677.000 

375,000 


23,231,000 

53,075,000 

111,000 

6,100,000 

110,000 

895 

11,121,616 


Revenue 

Total 


Other  Receipts.  , 

Repayment  of  Advances  for  Bullion   : 

For  Treasury  Bills  (tor  supply)    

For  5  per  Cent.  Exchequer  Bonds,  igaa   ' 

For  3  per  Cent.  Exchequer  Bonds,  1930    ..,.| 

For  Wat  Savings  Certificates 

For  other  Debt  (War  Loan  Acts,  1914-1917)  ..! 
For  4  per  Cent.  War  Loan,  1929-1942,  and  5  per 

Cent.  War  Loan,  1929-1947    

For  National  War  Bonds    ; 

Temporary  Advances— Ways  and  Means 


128,995,511 


150,025,541 


1,170,000 
882,878,000 

803,600 
19,200,000 
132,106,743 


*i59,564,ooo 
179)023,440 


Total I    1,524,776,324 


£ 

35.2C9,947 
1,225,912 


26,435,859 


14,814,000 
8,223,000 
6,912,000 
1,402,000 

300,00c 


20,994,000 

35.552,000 

136,000 

6,oco,ooo 
90,000 

9.453 

856,195 


95,288,648 


121,724,507 

560,000 
387,714.000 
39,654,00a 

8,500,000 
109,190,879 

161,100,000 

175.605,000 


1,004,048,386 


^  Excluding  sales  through  joint  stock  and  private  banks  not  yet  brought  to  account. 


Expenditure 
and  other  issues. 


Estimate  for 
the  Year 
1918-19. 


Total  Issues 
out  of   the  Ex- 
chequer to  meet 
payments   from 
April  i,igi8,  tc 

June  15,  1918. 


Total  Issues 
out  of  the  Ex- 
chequer to  meet 
payments   from 
April  I,  1917,  to 

June  ifi,  1917. 


Expenditure. 
Permanent  Charge  of  Debt  . . 
Interest,  &c.,  on  War  Debt ,. 
Payments  to  Local  Taxation 

Accounts,  &c 

O  ther      CoQsoUdated      Fimd 

Services    

Supply  Services    


Expenditure 


£ 
3,378,855 
85,421,206 

462,205 

302,290 

527.064,900 


616,529,456 


J    Exchequer 

Expenditure 


X913 


Other  Issues. 

For  Advances  for  Bullion  

For   Advances    for    Interest    c 

Bonds     under    the     Capital 

(Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act; 

Under  Housing  Act,  1914 

For  Treasury  Bills  for  Supplv 

For  War  Loans,  Eichequer  Bonds,  &c., under 

Section  34  of  Finance  Act,  1917  

For  War  Expenditure  Certificates  under  War 

Loan  Act,  1916    

For  other  Debt  under  the  War  Loan  Acts, 

1914  to  1917..  

For  Depreciation  Fund  under    the    Fmance 

Act,  1917  

Old    Sinking    Fund,     1910-11,    issued    under 

the  Finance  Act,  1911,  Section  16  (i)  (b)  .. 
Temporary  Advances  repaid — Ways  and  Means 


i      1918-     j      '9*7- 
I  June  15.  I  June  16. 
Balances  in  Exchequer—  \        £       \       £ 

Bank  of  England I  11,035,702  23,992,509 

Bank  of  Ireland |    1,045,570!    1,320,4151 


84,909 

15,000 

12,000 

106,300 

t8o3, 888,000 

10,622,81  8 
15,109,600 
15,386,924 

5.320,045 

20,C0O 
54,000,000 


1,5*2,695,052 


12,081,272 


Total !     i,534,776,3a4 


£ 
4,104,606 
51,619,674 

463,146 

267,7«4 
493.530,300 


549,984,510 


800,000 


84,909 
30,000 

175.400 
236,871,000 

155,120 


3.134,523 


187,500,000 


978,735.462 


25.312,924 


1,004,048.3*6 


Memo.— Treasury  Bills  outstanding  on  June  15,19x8 ^^Tr.osi, 772.000. 

*  Includes  £200,000,  the  proceeds  of  which  were  not  carried  to  the  Kxcbequer 
within  the  period  of  the  account,  besides  a  part  (not  yet  ascertained  and 
brought  to  account)  of  the  Bills  tendered  as  subscriptions  to  National  War  Bonds. 

\  Includes  part  payment  of  Bills  and  Certificates  tendered  as  subscriptions 
to  National  War  Bonds 


602 


XTbe  Jnveators'  IRevtew. 


Jl'NE  22,    191 8. 


ASSURANCE  CO.,  LTD. 


NATIONAL  BENEFIT 

ASSETS    EXCEED        .  -        £1.000.000. 

Attractive   LIFE,    FIRE,  ACCIDENT  &  MARINE  Policies. 

HEAD    OFFICKS : 

NATIONAL    HOtJSE,    Newgate    Street,   LONDON.    EC.  1. 

Managing  Director:   J.  Francis,  J. P.,  F.S.S. 


In  these  days,  when  wide  circulation  of  papers 
through  the  post  is  impossible,  we  rely  on  news- 
paper advertisement  to  remmd  our  friends  that  we 
look  to  them  to  do  what  they  can  to  make  the 
merits  of  the  Society  known  in  their  own  circles. 

The  Clerical's  strong  2\  per  cent.  Valuation, 
unbroken  Bonus  r'ecord,  and  attractive  rates  of 
premium,  carry  great  weight  with  everyone  who 
is  selecting  an  office  in  which  to  assure  his  life 
in  these  hazardous  times.  —  A.  D.  Besant, 
General  Manager  and  Actuary,  Clerical,  Medical 

and  General  Life  Assurance  Society,    15,   St. 

James's  Square,  S.W.  1,  London. 


Hbe  Snvestore'  1Rev?iew. 

Money    and   Credit    Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5I  percent,  on 
Thursday,  April  5,  1917.) 


Norfolk  House,  Friday  Evening. 

Credit  was  made  scarcer  in  the  middle  of  the  week  b}'  the 
suction  of  the  Government,  and  that  made  a  difference  by 
Thursday  of  about  j  per  cent,  in  the  price  of  call  loans.  They 
cost  3  per  cent,  instead  of  occasionally  and  at  the  tail  of  the 
business  day  2J  per  cent.  Seven-day  rates  are  as  before.  Dis- 
count rates  also  stand  just  where  fhey  did,  except  perhaps  for 
60-day  remitted  paper,  which  was  sometimes  taken  at  -^  below 
3J  per  cent.  The  movements  of  foreign  exchanges  attract  a 
certain  amount  of  attention,  but  all  that  need  be  said  about 
them  will  be  found  below. 

The  Bank  return  appears  to  show  traces  of  last  week's 
attempt  on  the  part  of  the  Government  to  pay  off  some  of  its 
formidable  mass  of  Ways  and  Means  advances.  Public  de- 
posits are  accordingly  down  ^^6,898,000,  and  other  deposits 
;^i, 376,000.  These  changes  are  reflected  in  reductions  of 
;f2,399,ooo  in  Government  and  ;^5,869,ooo  in  other  securities. 
Other  securities,  in  fact,  are  now  ;^  10,837,000  below  the  total 
of  a  year  ago.  Bullion  continues  to  come  back  to  the  Bank, 
and  is  ^327,000  up  on  the  week,  making  the  total  holding 
^64,206,000,  which  is  ;^7,57i,ooo  above  the  figure  of  a  year 
ago.  The  note  circulation,  however,  rose  ;^359,ooo  on  the  week, 
so  that  the  reserve  is  actually  ;£3i,ooo  down,  and  at 
;^3o,272,ooo  is  ;^5,973,ooo  below  what  it  was  a  year  ago. 

The  issue  is  announced  of  ;^2,ooo,ooo  in  5  per  cent,  three-year 
notes  of  the  Canadian  Northern  Railway  Co.  to  replace  those 
lallicng  due  on  August  12  next.  Holders  of  the  existing  notes 
are  invited  to  convert  into  the  new  issue  at  98^  per  cent.,  the 
remaining  i\  per  cent,  being  payable  in  cash.  The  notes  are 
unconditionally  guaranteed  as  to  principal  and  interest  by  the 
Dominion   Government. 

The  new  Canadian  loan  is  said  to  be  fast  getting  ready  for 
issue.  It  is  not  yeit  settled  what  the  amount  is  to  be,  but  the 
Times  Ottaw.a  correspondent  says  it  will  probably  be  fixed  at 
;£so, 000,000,  with  the  hope  that  twice  that  amount  may  be 
subscribed . 

New  credits  have  been  created  for  her  Allies  by  the  United 
States,  amounting  to  $175,000,000,  or  /35,ooo,ooo,  for  the 
United  Kingdom,  and  $9,000,000,  or  ;£i, 800,000,  for  Belgium. 
The  total  advances  to  the  Allies  arc,  therefore,  now  raised  to 
^1,191,000,000,  including  ^634,000,000  lent  to  the  United 
Kingdom. 

When  first  Lord  Northcliffe  set  on  his  Press  terriers  to  worry 
the  Government  and  Sir  W^m.  Plender  over  the  delays  in 
closing  the  London  branches  of  German  banks  we  put  the  out- 
burst down  to  his  crass  ignorance.  But  now  that — probably  for 
want  of  anything  more  sensational  to  employ  them  on — the  pack 


has  been  set  yapping  again  on  the  same  trail,  we  have  beta 
driven  to  the  conclusion  that  the  root  motive  is  not  ignorance 
but  malignity.  What  has  stirred  that  malignity  we  are  not 
curious  to  know — some  trivial  incident,  probably,  such  as  often 
sways  conduct  by  distilling  venom  in  minds  of  a  certain  type — 
for  it  would  be  hopeless  to  try  to  change  the  spite  into  reason- 
ableness by  argument.  We,  therefore,  merely  assert  the  truth 
and  leave  it  to  do  its  own  cleansing.  It  is  not  true  that  the 
Germans  banks  are  kept  open  here  because  traitors  are  at 
work.  It  is  not  true,  either,  that  they  remain  open  in  order 
to  be  able  to  resume  business  after  the  war  as  if  it  had  never 
occurred.  The  man  or  hack  who  maintains  these  falsehoods  is 
either  an  ass  or  a  knave,  or  both  ass  and  knave.  The  branches 
of  German  banks  are  kept  open  in  Ix>ndon  in  the  interests  of 
their  British — and  probably  also  of  their  French  and  neutral — 
creditors,  and  for  no  other  reason  whatsoever.  To  peremptorilv 
shut  them  now  without  realising  the  remaining  assets  woulil 
condemn  their  non-German  creditors  to  losses  amounting  to 
many  hundreds  of  thousands  of  pounds.  What  does  Lord  North 
cliffe  care  for  that?  Obviously  nothing  at  all.  But  the  publi  ; 
may  take  note  of  the  truth,  with  results,  by-and-by  ! 

An  interf.-ling  account  illustr.-irtive  of  the  raising  of  money  to 
the  ibelUgerents  has  been  compiled  by  the  New  York  Commercial 
Chronicle.    Our  own  first  loan,  for  eixamiple,  issued  in  Deceml)er, 

1914,  was  obtained  at  3.95  per  cent.,  our  .second,  issued  in  Jnnr- 
of  the  following  year,  at  4J  per  cent.  In  January,  1916,  the 
third  War  Loan  cost  the  Exchequer  5.41  per  cemt.,  and  the 
fourth  loan,  of  October  last,  was  sold  at  a  price  yielding  5.50  per 
cent,  to  the  investor.  Between  the  first  and  the  fourth  loan.;., 
therefore,  the  cost  of  nioijey  to  the  State  rose  1.55  per  cent., 
and  that,  too,  in  sipite  of  the  fact  that  the  price  of  money  was 
artificially  kept  down.     France's  first  loan,  issued  in  February, 

1915,  cost  5.60  per  cent.,  her  second,  in  November  of  the  same 
year,  cost  5.68  per  cent.,  her  third,  in  October,  1916,  5.63  per 
cent.,  and  her  fourth,  issued  in  November  last,  5.83  per  cent. 
Between  the  first  and  the  last,  therefore,  the  iticrease  was  0.23 
per  cent.  Without  going  into  d<-tails,  Rvissia's  first  loan  in 
1914  cost  5.30  per  cent,  in  interes-t,  and  her  sixth,  issued  in 
March,  1916,  6.25  per  cent.,  an  increase  of  1.65  per  cefit. 
Germany  despatically  kept  down  the  price  of  her  loans  more 
rigorou,sly  than  any  other  bownwer,  the  yield  being  practicallv 
stationary  at  5.13  per  cent,  on  the  first  lo'an  and  5.10  per  cent. 
on  the  eighth.  Austria's  first  loan,  issued  in  November,  1914, 
cost  6.15  per  cent.,  and  the  seventh,  put  forth  in  November  last, 
was  rai-sed  ;it  7.40  per  cent.,  so  the  increase  was  1.21;  per  cent. 
Hungary  paid  6.50  per  cent,  on  her  first  loan  of  "November, 
1914,  and  the  seventh,  issued  in  January  of  this  year,  co.=t 
7.15  per  cent.,  the  loans  between  fluctuating  between  6.50  and 
6.90  per  cent.  So  the  advance  here  was  0.65  .per  cent.  Between 
the  first  .-md  fourth  Canadian  loans  the  rise  has  been  0.40  per 
cent.,  and  in  the  United  .S^tates  from  3J  per  cent.,  the  cost  of 
the  firsit  Liberty  Loan,  issued  in  May  last  year,  the  price  in 
interest  has  risen  to  4J  per  cent.,  an  increase  of  0.75  per  cent. 
This  is  the  rate  paid  for  the  money  raised  by  the  Third  Loan, 
recently  floated  vi-ith   splendid   success. 

The  United  States  Government  has  made  a  new  regulation 
which  will  prevent  the  transfer  of  funds  to  foreigners  and  foreign 
institutions  unless  full  particulars  are  supplied  of  the  transac- 
tions, and  the  purpose  of  the  transfers  is  explained.  The  object 
of  this  regulation  is  to  put  a  check  to  the  speculation  which  has 
resulted  in  the  neutral  exchanges  moving  steadily  against  th-^ 
United  States. 

On  the  whole,  the  foreign  exchanges  have  moved  in  favour 
of  this  country.  The  outstanding  feature  has  been  the  sharp 
rise  in  the  Spanish  exchange  on  the  announcement  that  the 
Allied  Governments  are  taking  measures  for  reducing  the  pre- 
mium on  the  peseta.  It  is  understood  that  important  opera- 
tioiis  are  being  conducted  in  Madrid  by  the  American  Mission 
which  is  engaged  in  the  task  of  readjusting  the  exchange  situa- 
tion, and  that  about  ^^500, 000  of  exchange  has  alreidy  been 
provided  for.  The  market  for  Spanish  exchange  is  a  limited 
one,  and  the  knowledge  tliat  steps  were  being  taken  to  increa.se 
the  supply  of  pesetas  was  sufficient  to  cause  the  rate  to  rise  62J 
points  to  17.40  pesetas  to  the  pound.  Barcelona  has  risen  16 
points  to  17.85.  Amsterdam  at  9.33^  florins,  Christiania  at 
15.04}  kr.,  and  Copenhagen  at  15.32}  kr.  are  all  cheaper  to 
purchase.  Stockholm,  however,  has  declined  13  to  13.74J  kr. 
The  efforts  of  the  Italian  commission  to  regulate  exchange  do 
not  appear  to  have  been  very  successful,  for  the  lira  has  depre- 
ciateci  still  further  this  week,  though  a  partial  recovery  took 
place  on  reassuring  news  from  the  Italian  front.  The  rate  of 
exchange  has  risen  on  the  week  30  points  to  44.75  lire  to  the 
pound.  The  premium  on  New  York  funds  in  Montreal  has  in- 
creased still  further,  despite  the  shipment  o!  gold  to  New  York. 
The  exchange  rate  is  now  $4.85^.  or  about  g  points  higher  than 
in  New  York.  .\n  improvement  may  be  expected  as  soon  a^ 
the  Canadian  grain  bills  become  available.  The  sterling  value 
of  the  milreis  has  fallen  to  13d.,  and  of  the  Uruguayan  dollar 
to  6ijd. 

Sil.vrR. 

.Silver  continues  to  be  quoted  at  48j^d.  per  oz.,  and  all  in- 
terest has  ceased  in  a  market  so  stagnant.  In  India.  Mocatta's 
circular  tells  us,  the  demand  for  rupees  appears  to  be  as  great 
as  ever,  and  in  spite  of  the  huge  amounts  of  coin  both  in 
Bombay  and  Calcutta,  the  reserve  of  rupees  does  not  show  the 
increase  which  might  have  been  expected.  Montagu's  circular 
reports  the  s"tock  in  .Shanghai  on  the  15th  instant  at  25,000,000 
ozs.  in  sycee  and  .?I4, 400.000.  This  is  a  decrease  of  1.500,000 
ozs.  and  #900,000. 


June  22,  1918. 


XTbe  Jnvestore'  IReview. 


603 


BANK    OF    ENGLAND 

AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  i2,  for  the 
Week  ending  on  Wednesday,  June  19,  1918. 

ISSUE     DEPARTMENT. 


■Notes  Issued 


82,065,495  '  Government  Debt,, 
Other  Securities    ,. 
I  Gold  Coin  and  Bullion 
!  Silver  Bullion 


i  82,065,495 


11,015,100 
7,434.900 

63,615.495 


£82,065,495 


Proprietors'  Capital 

Rest 

Pufalio  Depaslts(includiog 
Bzcfaequer,  Savings 
Banks,  Commis«loner3 
of  National  Debt,  and 
Dividend  Accounts)  .. 

OtheiDeposlts 

Seven  Day  and  other  Bills 


BANKING    DEPARTMENT. 

£          !  £ 

•  ■'   14,553,000  I  Government  Securities  ..  53,749.732 

3,200,091  I  Other  Securities    ,.        ..  95.050,161 

Notes 29,681,530 

Gold  and  Silver  Coin      ..  590,431 


36,121,637 

125. '87,333 

10.093 


Cated  June  20, 1918 


£i79.'=72.'54 


£179,072,154 
E.  M.  HARVEY,  Chief  Cashier. 


BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  mwements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


Last  year. 
■June  20. 

June  12, 
191S. 

June  19, 
1918. 

Increase. 

Deoieiie. 

3,184,080 

30,143,009 

119,456,' 66 

26,193 

45,230,106 

.105,887,648 

36,245.194 

Liabilities. 
Rest 

Pub.  Deposits  .. 
Other    do. 
7  Day  Bills       .. 

Assets. 
Gov.  Seouritles. 
Other       do. 
Total  Reserve.. 

£ 

3,224,722 

43,019,697 

126,563,205 

10,522 

56,148,732 
100,919,204 
30,303,410 

£ 

3,200,091 

36,121,637 

125,187,333 

10,093 

53.7+9,732 
95,050,461 
30,270,961 

£ 

Decrease. 

2.399,000 

5.868,743 

31.449 

8,299,192 

24.631 

6,898,260 

1.375,872 

429 

Increase. 

8,299,192 

£ 

38,839,580 
56,634,774 

21-4  P.O. 
5      .. 

NoteCiroulatioD 
Coin  and  Bullion 
Proportion 
Bank  Rate 

£ 

52,025,115 

63,878,525 

17-9  p.c. 

5       .. 

52,383.965 
64.205,926 

5  p.c. 

Increase. 
£ 

358,850 
327,401 

Decrease. 

PUBLIC   INCOME   AND    EXPENDITURE. 

(For  7  days  ended  June  15.) 


Revbnue, 


Expenditure. 


Customs  

Excise 

Estate,  &c.,  Duties  .. 

Stamps 

Land  Tax  and  House  Duty 
Property  and  Income  Tax 
Excess  Profits  Tax  . . 

-Land  Valaes 

Post  Office 

Crown  Lands 

Sundry  Loans 

Miscellaneous . .         ..        .. 

Bullion  advances  repaid  .. 
FocTreasury  Bills  for  Supply 
3%  Exchequer  Bornds,  1930 
5%  Exchequer  Bonds,  1922. . 
6%  Exchequer  Bonds,  igao. . 
Kational  War  Bonds  '■'■' 

War  Savings  Certificates  . . 
4%  War  Loan,  1929-1942  \ 
5%  War  Loan,  1929-1947  f  '  * 
Other  Debts  created  under 
War  Loan  Act,  1915,  and 
Finance  Act,  igi6.. 
Telegraph  Money  Act,  1013 
Under  Post  Office  Rly.  Act, 

1913 

render  Military  Works  Act, 
1897-1903      

Vnder  Public  Buildings    ., 

Under  Housing  Act.. 

Repayment  of  Advance  for 
Interest  on  Exchequer 
Bonds  

China  Indemnity 

East  Africa  Loan  repay- 
ments  

Suez  Canal  Drawn  Shares. . 

Ways  and  Means  Advances 

Decreafie  in  Exchequer 
balances      


£ 
1,596,000 

1,104,000 
675,000 
100,000 

317,000 

6,631,000 

20,000 

900,000 


8,003,0:0 
80,446,000 


16,528,000 
i,6co,oco 


16,386,149 


1 ,000,000 
3,768,421 


£139.074,570 


National  Debt  Service 

Interest,   &c.,  on  War  Debt 

Development  Sc  Road  Impvt 

Payment  s  to  Local  Taxation 

Other  Consolidated  Fund 
Charges        

SupL  y  Services 

Bullion  Advances    . . 

For  Advance  for  Interest 
on  Exchequer  Bonds  un- 
der Capital  Expenditure 
(Money)  Act,  1904  . . 

For  Treasury  Bills   . . 

Other  Debt  under  War  Loan 
Acts,  1914-16 

For  War  Loan  and  Ex- 
chequer Bonds  under 
Section  61  of  Finance  Act, 
igi6,  and  Section  34,  1917 

Under  Telegraph  (Money) 
Act,  1913 

Under  Post  Office  (Lon- 
don) Railway  Act,  1913  .. 

lender  Military  Works  Acts 

Under  Housing  Act,  1914.. 

Public  Buildings  Expendi- 
ture Act,  1903 

Old  Sinking  Fund,  1907-8.. 

Sinking  Fund,  rgio-ii 

China  Indemnity 

East  African  Loan  . . 

Cunard  Agreement  Act 

Expenditure  Certificates   . . 

Depreciation  Fund  . . 

Suez  Canal  Drawn  Shares. . 

Temp      Advances     Repaid 

Increase  in  Exchequer 
balances       


£ 
5.320,415 

1,445 

5.937 
43.65O1OOO 

lOOjOCO 


47,888,000 
5,789,087 

2,828,663 


-.533.000 
860,023 


30,000,000 


:Ci39.o74.57o 


-^Excluding  sales  tTirough  banks  which  have  not  yet  been  brought  t«  account 


LONDON 

BANKERS- 

CLBAKING. 

Date. 

Increase. 

Decrease. 

January 

February 

March 

April 

May 

June          5 

..              12 

.,          19 

1918. 

2,073.224,000 

1,605,654,000 

1,784,836,000 

1,446,306,000 

1,837,751,000 

393.902,000 

383,311,000 

382,394,030 

1917. 

1,865,125,000 

1.779.524,000 

1,492,825,000 

1 ,403,902,000 

1,779.366,000 

396,033,000 

342,330,000 

388,145,000 

£ 

208,099,000 

292,011,000 
42,404,000 
58,385,000 

40,981,000 

£ 

173.870,000 

2,131,000 

5,75'.ooo 

Total 

9,707.328,000 

8,447,220,000 

641,880,000 

181,752,000 

CURRENCY  NOTES. 

Return  of  Currency  Notes  for  the  week  ended  June  19, 1918. 


Issued. 

Cancelled. 

Outstanding. 

£1  notes         

los.  notes       

Note  certificates 
Previous  total 

£ 

4,015,181 

I. 151. 124 

1,140,000 

935.387.115 

£ 

3.597,509 

",437.113 

430,000 

686,161,132 

69'. 625,934, 

i3o,6£|,4S3 
39.613.033 
29,790,000 

941.693,430 

250,067,486 

Ratio  of  gold  held  against  notes,  this  week,  12.06  p.c. ;  last  week,  12.91  p.c. 

FEDERAL  RESERVE  BANKS  (fe.S.)  (dollar  at  4g.). 


Gold  coin  and  certificates 
Gold  Settlement  Fund 
Gold  with  foreign  agencies  . . 
Total  gold  held  by  banks 
Gold  with  Federal  Res,  Agent 
Gold  Redemption  Fund 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  &c. 

Total  reserves  . . 
Bills  discounted— Members'. . 
Bills  bought  in  open  market 

Total  bills  on  hand     . . 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec. 
All  other  earning  assets 

Total  earning  assets  . . 
Due  fm  other  Fed  Res  bnk— n. 
Uncollected  items 
Total  dedctns.  fm  gross  dep. 
5%Red.Fund  agFed.Res.bknts 
All  other  resources 

Total  resources 

Capital  paid  in 

Surplus    ■ 

Government  deposits  . . 
Due  to  membrs  — Res.  account 
Collection  items 
OiherdepsincFor.Govt  crdts 
Total  gross  deposits  . . 
F.R.  notes  in  actual  circulat'n 
F.R,  bk  nts  in  circn— nettliab. 
All  other  liab,  in  for  Gov  crdts 

Total  liabilities 

Gold  res.  ag  nett  deposit  liab. 

Gold  res  ag  F.R.  nts  in  act  circ 

Ratio  of  eold  res  to  nett  dep. 
and  F.R.  nts  liabilities  com- 
bined       

Ratio  of  total  res.  to  nett 
deposit  and  F.R.  note  lia- 
bifcties  comb  ned 


May  jy,  igi8. 


£ 

95.9  -5.840 
83,667,400 
io,soo,ooo 


May  10,  1918. 


£ 

96,116,000 
87,488,800 
10,500.000 


May  18,  1917. 


£ 
70,053,800 

57,593.800 


190,073,200 

183,107,200 

5,700.400 


378,880, boo 
11.661.600 


390,542,400 
168,453,000 
5^.977-200 


194,104,800 

177.005,400 

5,516,800 


107,647,600 

89,662,200 

550.800 


376,627,000 
11. 873.000 


388,500,000 
i87,toS,200 
5  7. 207,  too 


197,860,600 
5.486,400 


203,349,000 

8,969,200 
20035.400 


224,430.200 

8,208,200 

14,608,600 

298, 40* 


245,015,400 

8,023,200 

21,352.400 

368,800 


29,004,600 
7,277,200 
15,600.800 


247,545.400 

■376,400 

76,8:8,200 


274,759.'*oo 

*J,208,8OO 

92,444.000 


76,501,800 
106,000 
15,400 


7r4,7ii,nro 


I5,o63,ouo 

226,800 

9,750.600 

292,227,630 

56,495,000 

22,1^19.200 


381,392,400 

313.889,000 

I.575.C0O 

2,564, goo 


714. 711. OOP 


62.3% 
60.1% 


63.1% 


91,145,200 
80,800 
13,200 


54,839,400 

Gil, 400 

38, 566, r  00 
39.177,400 

8o,oon 
1,167,200 


754,499,QCQ 


15.023,600 
226,  Foo 
27,705,800 
309,627,400 
61,954,600 
22,122,200 


421,410,000 

313.923,600 

1,575.600 

2.33^i40o 


298,613.000 


11,373,000 

20.533.20c 
i4©,699.8oo 

27.350.000 


197,583,000 
89.300,200 

356,200 


754.499-0O0 


298,6i3,<oo 


58-9% 
5^.1% 


58.5% 


60-3% 


63.0% 
101 .0% 


79-9% 


53.1% 


^Difference  between  net  amounts  due  from  and  net  amounts  due  to  other 
I-ederal  Reserve  Banks. 

N-EW   YORK  ASSOCIATED    BANKS   AND    TRUST    COMPANIES 
(dollar  at  4s.).  


Loans,  Discounts,  etc. 
Cash  in  Vaults  of  Membsrs 

Fed.  Res.  Bk. 
Aggregate  Reserves    .. 

Excess  Reserve 

Nett  Demand  Deposits 
Nett  Time  Deposits    , . 
U.S.  Deposits  Deducted 
Circulation         


June  15,  1918 


£ 
909,352,000 

20,240  000 
110,866,000 

10,850,000 
75),i70,o-'0 

31,518,000 

59,470,000 
7,4^26,000 


June  8, 1918 


900,698,000 

19,972,000 

107,004,000 

7,498,000 

749.394.000 

31,288,000 

59,386,000 

7,434,000 


June  1, 1918  June  i6, 1917 


904,740,000 

20,234,000 
ioS,364,ox) 
9,424.000 
744,810,000 
32,256,000 
71,212,000 
7,412,000 


760,254,000 


10,020,000 
714,654*000 

34,532,000 
5,918,0008 


BANK  OF  FRANCE   (25  francs  to  the  £). 


June  20, 1918. 
£ 

June  13,  1918. 
£ 

June  6,  1918. 

June  21,  1517. 

£ 

£ 

Gold  in  hand 

134.414.320 

133,942,120 

133.865,440 

130,009,400 

Silver  in  hand 

10,242,560 

10,142,080 

10,156,600 

>o,347.040 

Bills  discounted 

53.393,6So 

59,102,720 

55.966,240 

19,592,480 

Advances 

38.402,360 

38,265,920 

37,»7l.,520 

46.015,200 

Note  circulation 

1.136.571,880 

1,129,282,920 

1,120,487,840 

791,117,040 

Public  deposits 

2,7IJ,28o 

2,129,080 

2,187,360 

4,453,040 

Private  deposits 

157,124,840 

■55.050.920 

154.435,040 

103,697,520 

Pnreten  BtllR.. 

228,880 

277,280 

346,680 

n6,o8o 

Proportion  between  bullion  and  circulation  19.98  per  cent.,  against  20.06  Mr 
cent,  last  week.  Advances  to  the  State  ^728,000,000,  increase  i  10,000,000.  Tbe 
adjourned  payments  of  drafts  in  Parts  on  account  of  the  moratorium,  £i8,954»6»o, 
decrease  ^"5.920,  and  at  the  branches  ^^24, 192, 560,  decreasR  ^33^280. 

BANK    OF    SPAIN  (25  pesetas  to  the  £). 


June  8,  1918  June  i,  zgi8 


£ 

Gold        82,930,479 

Silver I    28, 1 59,95 1 

Foreitiu  Bills 1      3,813,496 

Discounii:  and  Sdort  Bills  ..i*  32,934,536 
Treasury  Aooount,  &c.  ,,'  25,465,616 
Notes  in  ClroulatioD  ..  ..!  117,538,517 
Current  Accounts,  Deposits  40,279.566 
Dividends,  Interests,  &o.  ..  1,699,391 
'Government  Seotirlties        ..'      2,504,248 


£ 

82,675,354 

28,340,131 

3,813.371 

33.039.224 

25,209,919 

117,424,483 

40,115,188 

2,429,090 

1,953.843 


May  25, 1918 June 9,  iji? 


£ 

82,434,917 

28,347,212 

3.833.394 

32,168,254 

25,329.553 

117,070,644 

3e.55'.336 

1,755,270 

2,069,026 


£ 

59,394. 

30,090, 

3.582, 

31.307. 

25,616, 

97.748, 

30,99' 

l,ll!9, 

6,880, 


483 
.133 

35.i 
.338 
,861 
.645 
.752 
1,642 

52G 


SWISS  NATIONAL  BANK  (25  francs  to  the  £). 


Gold  and  silver      .. 

Bills 

Note  oiroulation 
Current  and  deposit 
accounts     ., 


June  7.  I9>8. 


£ 
17.492,112 

11,435.184 
27,582,824 

4.263,476 


May  31, 1918. 


£ 

17.537.176 

12,195,380 
28,201,024 

4.239. '72 


May  23, 191S 


£ 

17,316,888 
10,873,444 
26,873,776 

4,110,464 


June  7,  igir- 


£    , 

I2,442,28i'. 

6,236,56.S 
16,580.980 

4,953.532 


6o4 


Zbc  JnvcQtovQ'  IRevlew. 


JCXE  22,     1918. 


NETHERLANDS  BANK  (12  Florins  to  tbe  t). 


Gold  and  Silver 
Bills  and  Advances 
Note  clrculatloo 
Deposits. .        .. 


June  I},  1918 


C 
60,467,250 
I4,>8>,i66 
76,«>8,l66 
4,8gi,a;o 


Junes,  1918. 


60,661,333 

14.759,000 

76,633,250 

4.758,033 


June  1, 191I 


£ 

60,671,916 

15,804,000 

77t54t.333 

4,916,500 


June  16,1917 


£ 

50,849,000 

'2i937,250 

62,046,000 

5.392.500 


IMPERIAL  BANK  OP  GERMANY  (20  marks  to  the  £). 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted       .. 
Advances        ..  '     ,. 
Note  circulation 
Deposits 


June  15,  1918.  June  7,  1918,    May  31,  igiS. 


£ 

"3i3'9.25o 

81,561,050 

746,833.850 

473.S50 
602,103,000 
395.237,000 


£ 

123,308,500 
81.549.350 
715,445,500 
398,600 
601,709,700 
368,201,300 


£ 

«23, 305.250 

81,037,550 

727,238,600 

348,100 

600,134,400 

381,739.700 


June  ij,  1917. 


i>9.'59.coo 
26,372,400 
473,7"o,i«o 
5(0,000 
411,201,200 
240,814,800 


Clearing  House   return     during    March    ^459.815,355.   against    £420,879,905 
n  F«braary. 


LONDON  COURSE  OF  EXCHANGE. 

Place. 

Us 

ince. 

June  19,  1918. 

June  21.  1918. 

Sellers. 

Buyers. 

Sellers. 

Buyers. 

Amsterdam  , .    . . 
Paris     

Switzerland!!    !! 

Genoa,  iic.  '.'.    '.'. 
Spain     

Lisbon  and  Oporto 
Copenhagen..     .. 
Cbristiania  . ,     . . 
Stockholm   ..     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills. .     . . 

Cable  transfers 

Three  months' bills  . .     .. 

Cable  transfers 

Cable  transfers 

Three  months'  bills  . .     . . 

Cable  transfers 

Cable  transfers 

Cable  transfers 

Cable  transfers 

9-32 

27-15 
27-55 
18.75 
19.10 
45-35 
16.88 

n 
15-32 
15-07 
13-78 

9-37 
27.18 
27.60 
18.85 
19.20 
45-55 
l6.()5 

15-42 
15-17 
13-88 

932 

27.14 
27-54 
1S.70 
19.05 
44-20 
17.10 

30i 
15.25 
15.02 
13-65 

9-36 

27.17 
27.64 
18.80 
19.15 
44-35 
17-30 
66 

3ii 

J5-35 
15.12 
■3-75 

FOREIGN  RATES  OF  EXCHANGE  ON  LONDON. 


Paris,  cheques 
Amsterdam,  cbecjues 
Italy,  sight 
Madrid,  sight., 
Lisbon,  ?ight .. 
Switzerland,  sight   .. 
Christjania,  sight 
Stockholm,  sight 
Copenhageii,  sight   . . 
Petrograd,  sight 
Alexandria,  sight 
Bombay,  T.T. 
Calcutta,  T.T. 
Hong  Kong,  T.T.     .. 
Shanghai,  T.T. 
Singapore,  T.T. 
Yokohama,  T.T. 
New  York,  cable 
Buenos  Aires,  T.T. . . 
Valparaiso,  go  days.. 
Montevideo,  T.T.     .. 
Rio  de  Janeiro,  go  days 


Method^)f 
Quoting. 


Francs  lo  £i 
Florins  to  £i 
Lire  to  ;fi  .. 
Pesetas  to  £i 
Pence  to  milreis  . 
Francs  to  £i 
Kroner  to£i 
Kroner  to ^i 
Kroner  to  £i 
Roubles  to  jf'io     . 
Piastres  to  £i 
Sterling  to  rupee. 
Sterling  to  rupee. 
Sterling  to  dollar. 
Sterling  to  tael     . 
Sterling  to  dollar. 
Sterling  to  yen     . 
Dollars  to  £i 
Pence  to  dollar    . 
Pence  to  peso 
Pence  to  dollar    . 
Pence  to  milreis  . 


Last 

s-g 

Week. 

0.  X 

w 

2^.22^ 

27.1th 

12.107 

9.31.1 

25.224 

44.90 

25-224 

16.65I 

534d. 

30*d. 

25-224 

1S.84 

18.159 

15-07 

18.159 

»3-8£^ 

18.159 

15-26* 

94-57 
974 

nom. 

97J 

1/4 

i/5l 

1/4 

1/5P 

3/2| 
4/7* 

24-78d- 

2/2I 

4-S6i 

4-/6Ji 

47-58d. 

5.|d. 

l7Md- 

5ld. 

63d. 

i6d. 

liiid- 

This 
Week. 


OPEN  MARKET  DISCOUNT. 


Thirty  and  silly  day  remitted 
Three  months  ,, 

Four  months  ,, 

Six  months  , 

Three  months  fine  inland  bills 
Pour  months 
Six  months 


BANK  AND  DEPOSIT  RATES. 


Saoit  of  Uogland  minimum  discount  rate 
,,  ,,         short  loan  rates 

Bankers' rate  on  deposits 

Bill  brokers' deposit  rate  (Oall)      ..        .. 

,,  7  and  14  days' notice 

OurteDt  rates  for  7  day  loans 

,.  for  call  loans  •■ 


Last  week.  Thisweek 
Percent.    Percent. 

■MUt 

3i 
34 

..     4i-2 

Last  week  This  week 
Percent.  Per  cent, 
..        5        ■•        5 


3 

3 

3 

3 

3 

3 

3-J 

•         3l 

24-3 

.     3-3i 

The   Week's    Stock    Markets. 


There  has  been  quite  a  substantial  increase  in  the  amount  of 
business  passing  on  the  Stock  Exchange  this  week,  at  any  rate 
as  judged   by  the   numb<rr  of  transactions   oflScially    recorded. 


It  is  as  wondi-rful  as  it  is  gratifying  how  the  Stock  Exchange 
keeps  such  a  cho  rful  face  to  the  world  in  good  and  evil  report. 
This  week,  on  the  whole,  things  have  been  in  Tts  favour,  and  it 
has  taken  full  advantage  of  them  not  only  by  increasing  the 
volume  of  business  (and  the  outsider  has  little  idea  how  much 
the  Stock  Exchange  can  foster  it),  but  by  pushing  up  the  prices 
of  all  the  leading  stocks.  War  Loans,  shaded  off  at  the  finish, 
but  Home,  Colonial,  and  Foreign  Rails  would  have  been 
described  as  booming  in  the  old  days,  and  Shipping,  Iron,  Oil, 
and  Brewery  shares  forged  ahead  in  grand  style.  It  is  the  only 
expression  the  House  can  give  of  its  admiration  for  the  magni 
ficeut  stand  of  the  Italians  against  the  Austrian  onrush,  and  the 
tribute  it  pays  to  the  valiant  manner  in  which  the  thin  French 
lines  have  held  the  Western  front  with  the  aid  of  the  American 
und  Uritish  divisions.  It  is  all  right ;  we  are  doing  splendidly, 
and  although  experience  has  proved  that  it  is  dangerous  to  pro- 
phesy, we  b'-lieve  the  end  is  not  so  very  far  off.  Look  at  Austria. 
Turkey,  and  l.ulgaria.  and  p-hick  up  courage. 


Consols 

Wat  Loan  3*% 

*i% 

5%  1929-47-- 
.  ^.  ..  ,  4%,  1929-42.. 
India  3% 


3i%- 

alian 


Australian  5j%,  1920-22  , 
Canada  4%,  1940-60  .... 

,.       44')i.  >9«o-5  ..•• 

Argentine  5%  1886 

Belgian  3% 

Brazil,  1913 , 

..       5%,  1914    

Chinese  1896  , 

..       1912 

Egypt  Unified  4% 

Caledonian  defd , 

Gt.  Central  pia 

..    „..        dfd 

Gt.  Eastern 

Gl.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd. 
London  Chatham  ord.. . 
Canadian  Pacific 


Last  I  This 
Week  Wcekl, 


E.  Indian  Guar,  44  %  debs. 
Grand  Trunk  ord.    

Do.  1st  pf 

Do.  3rd  pf 

Antofaeasta  dfd 

B.  A.  &  Paciiic 

B.  A.  Gt.  Southern 

8.  A.  Western    

Cent.  Argentine  ord 

Anglo-South  American   ..I 

Bank  of  Australasia I 

Bankof  N.S.  Wales ! 

Barclay  &Co."A" \ 

Do.       "B" i 

Capital  &  Counties  ' 

Chartered  of  India    i 

Hongkong  &  Shanghai    . . 

Lloyds  

Armstrong,  Whitworth  .. ! 
Birmingham   Small  Arms| 

Cammell-Laird i 

Cargo  Fleet j 

Davis,  D.,5/   I 

Dorman,  Long  ...I 

Associated  Cement ' 

Borazdfd 

Bovrll    

British  Amer.  Tobacco  pf. 

British  Aluminium  

British  Oil  &  Cake    

Brunner,  Mond 

Castner-Kellner 

Eastern  Telegraph   

t£astmans... .  

Gunard 

Furness,  VVithy 

P.  &0.dfd 

Royal  Mail 

Anglo  Argentine  istPf.. . 

BrazilTraciion 

Darracq    

Anglo-Egyptian  "B"  .... 

Burmah 

Lobitos 

Mexican  Eagle  pf 

North  Caucasian 

Roumanian  Cons 

Allagar2;- 

Anglo-Dutch,  /'i    

Anglo-Java  Rub.  2/-     .... 

Anglo-Malay  2/ 

Ayer  Kuning  £1 

Brit.  N.  Borneo  Trust  £1 

BukitCIoh2/- 

Bukit  Mertajam  2/-  

Bukit  Sembawang  2/- .... 

Carey  United  £1  

Chersonese 

Chevic;t2/-  

Dalkeith  2/- 

Grand  Central  £1 

Highlands  £1 

Java  Investment  :f  I 

Jobore  Rubber  Lands  £1. . 

Kamunin.1  2/- 

Kinta  Kellas  2/- 

Labu2/- 

Langen  Java  £1 

Linggi2/- 

London  Asiatic  2/- 

Malayalam  £1 

Merlimau  2/-   

Bechuanaland  Exp 

Brakpan  

Broken  Hill  Prop.  (8/-)   . . 

tlam  &  Motor 

Central  Mining  (£12)  .... 

Chartered    

City  Deep     

Cons.  Gold  Fields   

Cons.  I-anglaagte 

Crown  Mines  (10/-) 

De  Beers  dfd.  (£2  :o3.)  .. 

East  Pool  (5/-) 

East  Rand   

Geduld 

Geevor  (to/-)   

Gov.  Areas  Mod     

Gt.  Boulder  (2/-I    , 


Lait  'TlBr 
Weak  Week 


•N.S.W.  3%,  1921-3   

..      31%.  1920-2 

.,     5J%Debs 

New  Zealand  4%,  1929  . . 
Queensland  44'^.  1920-3.. 
iS.  Australian  5*%  1922-7. . 
Union  of  S.  Afrie*  44%, 

1920-5    

Victoria  44%,  1020-3 

Westn.  AuB.  4%    

French  War  Loan,  5%  .. 
Japan  44%  (ist),  1905   .... 

....        5%. '907 

Mexican  5%,  1899   

Russia4  % 

..      4j%.  1909 

..      5%.  1906 

London  and  N.-W 

London  and  S.-W.  dfd. .. 

Metropolitan  

Mel.  District 

Midland  dfd 

Nth.  British  dfd 

Nth. -Eastern 

Sth.-Eastern  dfd 


Chesapeake. 

Erie 

Southern  . . . 


97i 
100 
1024 

%i 
1004 

94i 
934 

774 

89 

52. 


44 
90} 

22 


56 

>34 
27i 

591! 

'9 

854 


Leopoldina 37 

Mexican  ord !     i84 

San  Paulo  (Brazilian) 1834 

United  of  Havana 72I 

London  &  Brazilian j  23 

London  City  &  Midland. .  8 

London  County  &  West*..  15} 

London  Joint  Stock i  284 

-      -          -    -     -  ,5j 

3°. 


Nat.Prov.(£io4pd) 

Do.  (ftapd) 

Standard  of  S.A 
Union  Discount. 


K)*nochs 


97i 

IO« 
102^ 
87 

93} 

1C04 

94i 
93} 
77J 
763 

t 
55 

32i 
37 
44 

92i 
23J 

«{ 

17 

58 

'4 

294 


19 

26 


37jx 

20 
183 
76* 

25 

8 

"! 

29* 

16' 


21; 

3ft 
15/9 


Ky 

Mond  Nickel  ord 

Nobel,  £1    '   74/x 

South  Durham  Steel  ....    46/ 

Thornycroft    39/ 

Vickers 1  43/ 

ForestalLand I   43/3 

Hudson's  Bay    [    7:^ 

Imperial  Tobacco  '  C  '  pf.    32/6 
Lever  Bros."C"pf... 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

Pears,  A.  &F 

Underground  Inc.  Bds. 

Coats 

Courtaulds 7i     I 

English  Sewing  Cotton  ..    58/6 
Fine  Cotton  Spinners  .....  33/ 

Harrods  Stores !    2A  | 

35/6  I 
'6/6 

m 

6/9  I 
35/6. 
i 


Dennis  Bros 

National  Steam  Car 

Rolls-Royce 

Shell 

Spies  (10/.) 

Trinidad  Leaseholds  ... 
Ural  Caspian  . 


Venezuelan ;    2 


71/3 
12/ 

14/104 


22/ 
1 1/6 


35/ 

6/6 

3/3 
3/1* 

22/9 
2/3 
24/ 
2/7  J I 

29/6 
57/6 
3/7} 
2/7 
3/9 
7/3 
30/ 
3/7 
.  78/6 

ig  Malim  £1 .1  27/6 

£1 .'I  56/6 


Pataling  2/- 

Perak  2/-   

Port  Dickson  2/-  

Kub.  Estates  Krian  2/-. . . . 

Rubber  Trust  £1 

Sampang  (Java)  2/- 

Seaport  £1 

Sengat  2/- 

Seremban  £1  

^ialang  £1    

[Singapore  Para  2/-    

;  Singapore  United  2/-  .... 
,  Strait.-  Bertam  2/- 

Sumatra  Para 2/- 

I  Sungei  Bahru  £1   

Taipiug  2/- 

jTandjong  £1 

Tandjonj 

Tehran  _ 

Telogoredjo  £1 i  35/ 

Tempeh  2/- I   2/4 

United  Serdang  2/- 

ValdOr  2/-.. 

Vallambrosa  2/-.... 


1^ 


Kyshtim    

Mashonaland  Agency  . . 
Meyer  &  Charlton    . . . . 

Modder  "B  "....■; 

Do.    Deep 

Mysore 

Nigerian  Tin 

Pahang  (3/) 

Rand  Mines  (3/-)   

Renon^ 

Rio  Tinto{£5)  

Russo- Asi  nic 

Sou  til  Crcfty  (5/-) 

Spring  Mines 

Tanganyika 

Taoalyk    

Van  Ryr.  Deep   


40/ 
3i 

72/6X 
46/6 
40 
44/9 
44/6 

^^ 
32/6 

21/ 

4i 

77 
5i 

',i 
60/ 

34/3 

2ft 

35/9 

•6/ 

'& 

6/9 

35/6 


■35/ 

6/7i 
3/4* 
il'i 
23/3 
2/3 

24/ 

2/84 

3'/ 

58/6 
3/74 
2/7 
5/9^ 

7/14 

30/ 
3/6 
78/ 

26/6 

3«6 

35/ 

2/5 

9/3 
3/» 

•9/9 


These  have  got  up  to  a  level  of  about  3,000  per  day,  and  although 
that  is  less  considera-bly  than  was  the  case,  say  twelve  montlhs 


June  22,  1918. 


XTbe  Jnvestors'  IRevtew. 


605 


;;j,'0,  it  15  a  decided  improvement  on  recent  experiences.  On  the 
whole,  the  tone  has  been  exceedingly  cheerful,  and  while  gilt- 
edged  securities  have  been  inclined  to  give  way  towards  the  end 
of  the  week  the  active  securities  are  mostly  fractionally  higher. 
Nothing  much  was  dom-  in  the  Colonial  section,  but  Foreign 
stocks  showed  considerable  strength,  with  Chinese,  Japanese, 
Brazilians,  and  a  few  others  particularly  prominent.  On  the 
other  hand,  Spanish  Fours  gave  way,  but  the  price  is  probabl)' 
higher  than  prudent  invei»tcvri  would  care  to  buy  thr-  stock  at. 

Home  Railways  have  be'  n  e.iiceptionally  strong,  owing  doubt- 
Jess  to  the  near  approach  of  the  dividend  period,  and  the  whole 
list  advanced  J  to  i,  with  business  showing  a  tendency  to 
increase  at  the  end  of  the  week.  Americans  have  not  been  con- 
spicuous at  all,  and  apart  from  a  decUne  of  2  points  in  Inter- 
national Mercantile  Marine  preference,  the  movements  are  com- 
paratively trifling.  Canadian  I'acifics  have  been  more  or  less 
neglected,  but  there  has  been  a  very  active  market  in  Grand 
Trunks,  which  are  going  ahead  in  fine  style  owing  to  the  ex- 
pectation that  the  Canadian  Government  Commission  on  this 
side  will  be  able  to  arrange  satisfactory  terms  for  the  exprr;- 
priation  of  the  line.  Argentine  Railways,  after  a  dull  opening, 
made  great  strides,  and  it  is  possible  to  hope  that  the  labour 
difficulties  which  alone  have  retarded  the  market  for  some  con- 
siderable time  past  may  now  be  settled  in  a  satisfactory  manner. 
Jlexicans  advanced  a  point  or  two  in  spite  of  the  disappointing 
report,  but  with  the  more  amicable  feeling  between  the  Re- 
public and  the  United  .States,  there  is  the  possibility  that  a 
settled  Government  will  become  effective  sooner  than  appears 
probable  at  the  moment.  Antofagasta  improved  on  the  report, 
and  San  Paulo,  United  of  Havana,  and  a  few  others  also  ad- 
vanced. 

Bank  shares  were  well  supported,  and  many  of  the  issues 
which  are  usually  dealt  in  gained  a  fraction.  Breweries  also 
were  good,  but-the  changes  have  not  been  very  numerous,  and 
nothing  of  special  interest  has  occurred.  Egyptian  issues  con- 
tinue in  favour,  but  Land  .shares  have  been  rather  neglected, 
afid  even  Hudson's  Bays  do  not  move  to  any  appreciable  extent. 
Forestal  Land  were  steady  round  about  45s.,  and  Pahangs  were 
firm  at  12s.  6d.,  while  Pekin  Syndicates  received  a  fair  amount 
of  support  in  the  neighbourhood  of  los.  Iron  and  Steel  shares 
generally  showed  very  substantial  improvement,  with  the  Ex- 
plosive and  allied  industries — about  which  the  amalgamation 
rumours  are  still  active — appearing  to  most  advantage.  Ship- 
ping shares  were  very  prominent,  and  strongly  supported  at 
different  times,  but  on  balance  the  changes  are  not  very 
striking.  Among  Miscellaneous  Industrials  the  business  was 
extremely  small,  and  except,  in  a  few  outside  shares,  nothing  of 
any  consequence  happened. 

Oil  shares  have  been  better  supported  than  the  conditions 
would  generally  lead  us  to  expect,  but  with  the  Shell  bonus  and 
talk  of  the  Burmah  once  .more  making  a  huge  distribution,  the 
best  class  of  shares  certainly  has  attractions.  With  regard  to 
Rumanian,  RussiaUj  and  the  smaller  class  of  speculative 
counters,  the  outlook  is  so  uncertain  tJiat  prudent  people  are 
standing  out.  Rubbers  have  been  dull,  as  was  only  natural 
in  view  of  the  repeated  reductions  in  the  dividends  announced, 
and,  with  the  price  of  the  commodity  steadily  falling,  in  spite 
of  output  restrictions,  it  cannot  be  expected  that  the  market 
should  be  recklessly  cheerful.  With  restricted  outputs,  costs 
must  increase  and  dividends  mu«t  fall. 


LONDON    PRODUCE   MARKETS 

A  generally  steady  tone  prevailed  in  the  various  sections, 
although  the  volume  of  business  passing  shows  no  material 
expansion. 

Sugar. — No  change  occurred  in  prices  during  the  week,  while 
allotments  were  on  a  fair  scale. 

Cocoa. — There  is  a  steady  inquiry  at  graded  prices,  but  trade 
still  checked. 

Coffee.— Auciions  of  moderate  extent  paised  off  with  a  fair 
demand,  and  steady  prices  were  realised.  Santos,  quay  terms, 
sold,  70s.  to  80s.  6d.  ;  Venezuelan,  good  ordinary  dull  greenish, 
80s.  ;  Uganda,  common  to  good  brown  and  palish,  92s.  to  lois.  6d. ; 
Nairobi,  good  middling  greyish,  115s.  6d. ;  peaberry,  ii6s. 
Futures  remain  idle,  and  values  nominally  unaltered. 

Spice. — Cloves  quietly  steady,  with  fair  Zanzibar,  spot,  sellers, 
2s.  5d.  Pepper  again  firmer,  with  sustained  inquiries.  Fair  black 
Singapore,  spot,  sold  is.  7Jd.  to  is,  8d. ;  Tellicherry,  is.  S^d.  ; 
and  white  Muntok,  3s.  to  3s.  id.  Pimento  quiet,  at  sjd.  Tapioca 
steady.  Fair  flake,  spot,  sold,  Sd.  per  lb.  Fair  Penang  seed 
pearl,  quoted,  Bos.  ;  medium  ditto,  77s.  6d. ;  and  fair  small  sago, 
80s.     Broken  casiia,  sold,  85s.  per  cwt. 

Rice,  also  beans,  meet  with  steady  support  at  fixed  prices, 

Shbllac, — Market  steady,  with  sales  on  the  basis  of  340s.  for 
fair  free  second  orange,  spot. 

Isinglass. — In  auction  a  liberal  quantity  offered  met  with  fair 
support,  though  prices  were  somewhat  irregular.  Bombay  rather 
easier,  but  Brazil  firm  to  dearer.  Lump,  fair  to  good  palish,  sold, 
I2S.  to  13s.  6d. 

RtJBBER  in  fair  support,  and  rates  firm,  with  holders  more 
reserved.  Plantation  crepe,  spot,  changed  hands  at  2S  2d.  to 
23.  ijd.,  and  2s.  23d.  ;  July-December,  2s.  3jd.  to  2s.  3d.,  and- 
2s.  4d. ;  October-December,  2s.  4d.  to  23.  3jd.,  and  2S.  4jd. 
Ribbed  smoked  sheet,  spot,  2s.  id.  to  2s.  ojd. ,  and  2s.  ijd.  Fine 
hard  Para,  spot,  done,  3s.  ijd.,  and  soft  fine  ditto  quoted  3s.  ijd. 
per  lb. 

Corn  (Mark  Lane). — Trade  was  of  a  quiet  character,  small 
available  supplies  being  absorbed  at  full  rates.  Native  wheat 
quoted  at  77s.  gd.  per  504  lbs.     Imported  grades  nominal.     No.  i 


Northern  Manitoba,  82s.  3d. ;  No.  2  ditto,  also  hard  winters, 
80s.  gd. ;  Australian,  83s.  6d.  to  85s.  6d.  :  Indian.  77s.  to  78s, : 
and  La  Plata,  82s.  6d.  per  496  lbs.,  landed  terms.  Flour  in  steady 
supply,  with  a  fair  demand  for  G.R.  at  44s.  3d.  per  sack,  ex  mill. 
Imported  grades  nominally  50s,  3d.  to  51s.  3d.,  ex  warehouse, 
280  lbs.  Barley  maintained.  English,  62s.  gd.  to  63s.  gd.,; 
Califomian,  gss.  to  95s.,  ex  quay,  44S  lbs.  American  malting; 
82s.  6d. ;  and  Canadian,  8is.  to  85s.  per  400  lbs.  Maize  firm,  bnt 
quiet.  American  mixed,  7gs.  6d.  to  79s.  gd.,  ex  ship,  and  8is.  3d. 
to  81S.  6d.,  landed  terms.  Oats  are  in  rather  better  supply. 
Native  quoted  48s.  6d.  per  33G  lbs.  Of  imported  American,  white 
clipped  ranges  from  6is.  Cd.  to  62s.  6d.,  and  Canada  Western 
No.  2,  63s.  6d.  per  320  lbs.,  both  en  quay. 
Cotton   (from  our  Manchester   correspondent). — The   restric- 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 

WEEK  ENDING    JUNE  st.  1918. 


Last 

Week. 


This 
Week. 


Last 
Week. 


Bnfar— pec   owl.,  I   £  ^' 
duty    25/8,  98  %l 
polarisation        | 

Tate's  Cubes      ..1    3    4 

Crushed |    a  17 

Granulated  ..     ..j    2  17 

Lyie's  granulatedi    2  17 

Foreign  granu- 
lated, first  marks! 
f.o.b.,  spot 

GermanCubef.o.b. 

French  Cube 

prompt 

Ccystalllsed,  West 
India 

Beet,   88%    f,o.b. 


nom, 
nom. 


a  17    9 
nom. 


Tea— pet  lb.,  duty 

Indian  Pekoe 
Broken    ,,         ,. 
Orange    ,,  ..' 

Broken    ,,  ,.' 

Pekoe  S.-}ucbong  1 
Ceylon  Pekoe  . . ' 
Broken    ,,  ,,[ 

Orange    ,,  .,! 

Broken    ,,  . . ' 

Pekoe  Souchong 

Cocoa  —per  cwt. 

duty  6<f.  pet  lb. 
Trinidad— pet  cwt 
Gtenada  . .  . . 
West  Africa..  ,. 
Ceylon  Plantation 
Guayaquil  ..  .. 
Coffee — pet  owt. 
duty  42/. pec  cwt.! 
East  India    ,,    ,.| 

Jamaica ! 

Costa  Rica  ..  ..' 
Provlelona— 

Butter,  pet  owl.  1 
Australian  finest  j 
Argentine  , .  . . ', 
[tisfi  Creameries  I 
Dutch  ditio..  ..i 
Russian  finest  , .  i 
Paris  baskets  ..; 
Danish  finest  .,1 
Bclttany     tolls— i 

dot.  lb I 

Baeon— pet  cwt.  1 

Irish      

Continental . .  . .  1 
Canadian  . .  ... 
Ametioan  , .  . . 
Hame- pet  owt, 

Ictah      

Canadian  . .  . . 
Amerioao     >.    .. 

Oheeie— pet  owt. 

Dutch 

Canadian  . .  . . 
English  Cheddac 
Wilts  loaf  ..  .. 
New  Zealand 


s.  d.  s.  d 

I  4 

I  4 

I  4 

'  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

s   d.  s.  d, 

S6  o  90  0 
79  o  85  o 
53  o  65  0 

85  0  100  0 

up  to  go  0 


iio-o  135-0 
80-0  160-0 
II9-0  137-rf 


252/ 
252/ 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 


172/ 
169/-172/ 
l69/-i8o/ 

nom. 
I162/-165/ 
125/-165/ 


Sloe— pec  cwt, 

Japan    

Rangoon  2  stacs  . 
B<ia— per  120, 

English 

Irish      

Danish 


I 


Spelter— 

G.O.B.  as  to  posi- 
tion     


Flour— per  sack. 
G.  R.  ex  Mill . 


nom. 
nom. 
102/8-149/+ 
nom. 
nom. 

!.    d. 
4J     3 
26    3 

40  0-42  o 

"  0-38  6 

nom. 


£u  £50 
44/3 


f  .,  a 


3  4  9 

2  17  9 

2  17  9 

2  17  9 


nom. 
nom. 


2  17    9 
nom. 

s.  d. 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

I  4 

1  4 

I  4 

I  4 

i.  d.   »    d. 

86  ci  90  o 
79  0  85  0 
55  o  65 

t55  0  100  0 

up  to  90  0 


no  01350 

80  0  160  D 

iioo  1370 


252/ 
252/ 

nom. 
nom. 
nom. 
nom. 
nom., 

nom. 


172/ 
169/-172/ 
169/-180/ 

nom. 
i62,'-i65/ 
125/-165/ 

nom. 

nom. 

102/8-149/4 

nom. 

nom. 

s.    d. 
41    3 
26    3 


41  0-43  0 
57  6-3S  ,0 
nom. 


1C54-1C50 
44/3 


jwool- pec  lb. 

A  n  s  t  ra  1 1  an 
I  Scoured  Merino 
j  Scoured  Ct'sabr'd 
jGteasy  I^eclno  .. 
iGreasy  Crossbred 
INew  Zealand 
I  (scoured)  Merino^ 
Greasy  Crossbred] 
Cape  snow  wbite| 

Indiarubberp.lb 

I'lantation,      Spot 
Crepe 

Coal— pet  ton 

Durham,  best  . 

Seconds       ..  . 
l£ast  Hartlepool. 

Seconds       ..  . 
Steams,  best 

Seconds       ••  . 

Lead— per  ton. 
English  Pig..     . 
Foreign  solt,  net 


C  s.  d. 

nom. 
nom. 
nom. 
nom. 

nom 

nom. 
nom. 


This 
Week. 


QuIckiUver— per 

bottle  firsthand 


Tin— pet  ton 
English  Ingots 

Do.    bars 
Standacd  oash 
rinPlates.peibox 

Ooppec— pet  ton, 
l£ngli8b,  Tough, 
pec  ton  . .  ■  ■ 
Best  Selected  . . 
Sheets  .. 
Standaid 


h 


Jute— pet  ton 
Native   fitsts    foe 
'shipment 

OIU- 

1  Linseed,  per  ton 

iRape,  crude  

Cott'n  Seed.orude 
Petroleum  Oil, per 
I    8  lbs. 

Water  White      .. 

,oil  Seeds, Linseed 

iCalcutta— pet  ton 

Spot 


JKape     

iron^pec  ton 
Cleveland  Cash  . 

Tobacco  —  duly, 
uunianuCactured 
S/2-io/4iperlb, 

Vicglnialeat. 

Kentucky  leaf    . 

Latakia 

Havana..    .. 

Cigacs.  duty  15/7 
pet  lb. 


Turpentine- 
American  Spot 

'Copra— pec  ton 
jMcUabac       ..    . 

Ceyion 

F,M.S.  Singapore 
F,M.    Straits 


nom. 
nom. 
nom. 
nom. 

32    6    ; 

23    6 

i     s.  d. 

nom. 
£2g\-£^^ 


£  '-d- 

nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom 


2     24 


nom. 
nom. 
nom 
nom. 

32  6 

23  6 

£    s.  d. 

nom. 
£295-£2^ 


f333-iC334l 
£33t-£335 

£'329 

nom 


£330 

£331 

28-£3 


f328-£339 
nom. 


nom.  nom. 

£ii9-£i23  fii9-£iit3 
£«48  ,  I  £149  , 
iio-iioj  I  £iio-noj 


nom. 

£66 

£60 

i/iol 


£37  10 
£29-io£30 


I  6-2  6 

I  0—1  6 
nom. 

I  6-6  6 

2/  upds. 


46    0 
46    o 

45  10 
45  10 


] 


nota. 

£6fi 

£6* 

i/ioi 


£37  to 
£29-io£30 


I  6  -2 

I  o  -1    6 
nom. 
I  6-S  4 

2/  upds. 


113; 


46    0  o' 

46     01 

45  10  " 

45  <o  a 


tions  upon  business  in  the  market  tend  to  increase,  and  the  g«nera,l 
tone  during  the  past  week  has  been  rather  quieter.  There  i»  no 
probability  of  lower  values  in  the  near  future,  but  buyers  hesi- 
tate to  commit  themselves  to  deliveries  a  long  way  ahead  at  tlie 
high  figures  which  have  to  be  paid  to-day.  Many  spinner*  and 
manufacturers  have  plenty  of  work  to  go  on  with,  and  there  is  no 
disposition  to  extend  engagements.  The  weather  conditions  in  the 
American  belt  continue  very  favourable.  Some  rather  diverse  reports 
have  been  received  relating  to  the  Egyptian  growth.  There  has 
been  a  good  deal  of  discussion  with  regard  to  the  hitch  in  the  nego- 
tiations for  the  amalgamation  of  British  Dyes,  Limited,  and  Levin- 
stein, Limited.     It  is  stated  that  the  Control  Board  has  made 


6oG 


^be  investors'  IReview, 


June  22,   1918. 


a  request  to  certain  users  of  raw  ootton  who  have  large  stocks  to 
resell  a  part  of  their  holdings  to  firms  who  are  engaged  on  Govern- 
ment work.  Export  business  in  piece  goods  has  been  within  a 
narrow  compass.  The  offers  mentioned  for  India  have  only  been 
of  a  tentative  character,  and  there  is  no  probability  of  trade  matur- 
ing just  at  present.  Isolated  sales  have  occurred  in  fancies  for 
China,  but  standard  goods  remain  very  slow.  There  has  been 
rather  less  activity  for  most  of  the  minor  outlets.  Big  contracts 
have  been  placed  in  jeans  for  the  Government.  Light  fancy 
materials  have  moved  off  freely  for  the  home  trade.  American 
yarns  for  home  use  have  been  in  demand,  but  much  difficulty  has 
been  experienced  in  meeting  the  requirements  of  users.  Only  retail 
lots  have  changed  hands  in  shipping  counts.  Steady  buying  has 
occurred  in  Egyptian  spinnings,  and  certain  counts  and  qualities 
are  getting  distinctly  scarcer. 


DIVIDENDS    ANNOUNCED. 


Apex  Mines. — Interim  of  5  per  cent,  for  half-3'ear  ending 
June  30,  same  as  a  year  ago. 

"  Bodega." — For  six  months  ending  June  30  on  5  per  cent. 
cum.  pref.  shares,  payable  July  i. 

Briseis  Tin  and  General  Mining  Co.— No.  27  of  6d.  per 
share,  less  tax,  payable  July  11,  the  same  as  a  year  ago. 

Charter  Trust  and  Agency. — For  half-year  ended  May  31,  on 
preference  stock,  at  rate  of  5  per  cent,  per  annum,  payable, 
less  tax,  on  August  2. 

Clerical,  Medical,  and  General  Life  Assurance  Society. — 
Half-yearly  payment  of  qs.  6d.  per  share,  tax  free,  on  July  i, 
the  same  as  a  year  ago. 

Cluny  Rubber  Estates. — Final  for  igi;*  of  5  per  cent.,  les.s 
tax,  against  12 J  per  cent. 

Consolidated  Gas,  Electric  Light,  and  Power  Co. — Regular 
■kjuarterly  $2  per  share  on  the  capital  stock,  payable  July  i. 

De  Beers  Consolidated  Mines. — 20  per  cent.  (los.  per  share), 
less  tax,  on  preference  shares  for  half-year  ending  June  30.^ 
Also  20  per  cent.  (los.  per  .share)  and  a  bonus  of  5s.  (both  less 
tax)  on  deferred  shares  for  same  period.  A  year  ago  on  the 
deferred  shares  40  per  cent,  was  declared  for  the  year  to  June 
30,  191 7. 

Eagle,  Star,  and  British  Dominions  Insurance  Co. — Interim 
on  ordinary  shares  at  rate  of  15  per  cent,  per  annum,  free  of 
tax. 

Eastern  Assam  Co. — Balance  and  bonus  of  10  per  cent.,  mak- 
ing 15  per  cent.,  free  of  tax,  for  1917. 

Eastern  Extension  Australasia  and  China  Telegraph  Co. — 
First  quarterly  interim  of  3s.  per  share,  payable,  free  of  tax, 
on  July  15,  for  1917. 

European  Gas  Co. — 6s.  per  share,  free  of  tax,  making  a  total 
of  5  per  cent.,  free  of  tax,  for  the  past  year. 

Grand  Central  (Ceylon)  Rubber  Estates. — Final  for  1917  of 
5  per  cent.,  less  tax,  making  10  per  cent,  for  year,  against  14 
per  cent. 

Glencoe  (Xatal)  Collieries. — 2J  per  cent.  (6d.  per  share)  for 
half-year  ending  June  30,  the  same  as  a  year  ago. 

Hardy's  "Crown  Brewery,  Manchester. — Final  of  7s.  6d.  per 
share,  making  45s.,  or  225^  per  cent.,  for  year,  tax  free,  against 
18J  per  cent,  last  year. 


Harrisons  and  Crosfield. — On  the  Cumulative  preference 
shares  at  rate  of  5J  per  cent,  per  annum  for  the  two  and  a-half 
months  ending  June  30. 

Ipoh  Tin  Dredging. — Interim  for  1918  of  5  per  cent.,  free  of 
tax,  payable  July  g. 

John  Lysaght. — Bonus  of  4s.  per  share  (free  of  tax)  on  ordi- 
nary shares,  in  addition  to  interim  of  10  per  cent,  distributed 
in  January.  This  bonus  will  be  payable  cut  of  interest  on  in- 
vestments, and  not  out  of  trading  profits. 

Kinta  Tin  Mines. — 5  per  cent.,  free  of  tax,  payable  to-day, 
for  year  to  June  30,  the  same  a;  a  year  ago. 

Ledbury  Rubber  Estates. — Final  for  1917  at  rate  of  10  per 
rent.,  less  tax,  against  22^  per  cent,  a  year  ago. 

Montreal  Light,  Heat  and  Power. — 2  per  cent,  (being  at 
rate  of  8  per  cent,  per  annum)  for  the  quarter  to  July  31. 

Montreal,  Light,  Heat  and  Power  Consolidated. — i  per  cent., 
being  at  rate  of  4  per  cent,  per  annum)  for  the  quarter  to 
July  31. 

Mount  Morgan  Gold  Mining  Co. — No.  204  of  is.  per 
share,  less  Commonwealth  income-tax  at  6d.,  and  British  income- 
tax  at  2S.  g.oSd.  in  the  £,  payable  August  i ,  the  same  as  a 
year  ago. 

Natal  Navigation  Collieries  and  Estate  Co. — 3}  per  cent.  (gd. 
per  share)  for  half-year  ending  June  30,  the  same  as  a  year 
ago. 

National  Mortgage  and  Agency  Co.  of  New  Zealand. — Interim 
at  rate  of  7^  per  cent,  per  annum  (free  of  tax),  for  six  months 
ended  March  31. 

Northern  Assurance  Co. — Interim  of  4s.  6d.  per  share,  less 
tax,  on  the  participating  preference  shares. 

New  Zealand  and  River  Plate  Land  Mortgage  Co. — Interim 
of  5  per  cent,  (less  tax),  payable  July  i,  the  ?ame  as  a  year 
ago. 

Oriental  Telephone  and  Electric  Co. — Final  of  6  per  cent. 
on  ordinary  shares,  making  10  per  cent,  for  the  }ear,  and  a 
bonus  of  IS.  per  share,  free  of  tax.  For  1916  the  distribution 
was  10  per  cent.,  tax  free. 

Philippine  Dredges. — No.  2  of  is.  per  share,  less  tax,  payable 
on  July  9, 

Pernamibuco  Tramways  and  Power  Qo. — On  the  participating 
preference  shares  at  rate  of  3^  per  cent.,  less  tax. 

Plymouth  Consolidated  Gold  Mines. — Interim  (No.  10)  of  is. 
per  share,  less  tax  at  6s.,  payable  on  July  31,  the  same  as  a 
year  ago. 

Reliance  Marine  Insurance  Co. — Interim  of  4s.  per  share,  less 
tax,  to  be  paid  July  i,  being  at  rate  of  20  per  cent,  per  anrium, 
the  same  as  a  year  ago. 

Ruston,  Proctor,  and  Co. — Final  54  per  cent.,  which,  with 
interim,  is  equal  to  8  per  cent,  per  annum,  together  with  a 
bonus  of  2  .per  cent,  (both  subject  to  tax). 

South  African  Breweries. — Final  is.  3d.'  per  share  on  the 
ordinary  shares  (free  of  tax). 

Stretton's  Derby  Brewery. — Interim  on  the  ordinary  .share.? 
for  half-year  ended  March  31  at  the  rate  of  r,  p;r  cent,  per 
annum  (less  tax),  the  same  as  a  year  ago. 


FOUNDED 
1848. 


Extract  from  the  69th  Report  of 
the  Directors  on  the  operations  of 
the  Society  for  the  twelvemonths 
ending  31st  December,  1917. 

POLICIES  ISSUED  2,876  for£l,510,058 
NEW  ANNUAL  PREMIUMS  (net)  £64,135 
ANNUAL  INCOME     ...        £1,223,079 


GRESHAM     LIFE 


GRESHAM 

LIFE  OFFICE 


v. 


CHIEF  OFFICE:  St.  Mildreds 
House,  Poultry,  London,  E.C.2 


1. 

SPECIAL  FEATURES. 

Guaranteed  Income  Policies. 

2. 

3. 
4. 
5. 

Endowment  Assurances  with  guar- 
anteed  Premium   reductions  and 
Options  at  maturity. 

Pension    Policies     with      Optional 
Pension  Age. 

Immediate  Annuities  with   Return 
of  Purchas:  Money. 

Children's  Educational  Policies. 

6. 

Life    Assurance    with    or    without 
Medical  Examination. 

Founded  In  the 
first  halt  of  the 
last  century,  the 
GRESHAM  has 
paid  In  Claims 
and  Bonuses  over 
£35,000,000,  and 
now  holds  as 
security  for  Policy 
ho  Iders  funds 
antounting  to  over 
£10,000,000. 


ASSURANCE    SOCIETY,     Limited. 

ALEX     LAWSON,    Manager  &  Secretary. 


Junk 


Tqi8. 


ZTbe  5nve8tor8'  IReview. 


607 


Trodegar  Iron  and  Coal  Co.— Final  for  the  year  ended 
March  31  of  2^  per  cent.,  making  10  per  cent,  for  year,  together 
with  a  bonus  of  5  per  cent.,  both  free  of  tax.  \Varrant.s  will 
be   posted  on  or  before  June  28. 

Tongkah  Harbour  Tin  Dredging.— as.  (10  [jer  cent.)  and  a 
bonus,  of  IS.  (5  per  cent.),  payable  July  22.  A  year  ago  the 
distribution  was  2s. 

Upper  Assam  Tea  Co.— 12J  per  cent.  (as.  6d.  per  share),  less 
tax,  for  1917,  payable  July  i. 

Union-Castle  Mail  Steam.ship  Co. — c;  per  cent.,  tax  free,  on 
ordinary  stock,  making  8  per  cent,  for  1917,  the  sameas  for 
1916. 

United  Sua  Uetong  RublJer  Estates.- Final  7i  per  cent, 
(actual)  in  respect  of  1917,  making  17^  per  cent.,"  against  25 
per  cent,  for  1916. 

Vulcan  Motor  and  Engineering,  .'^oiithport. — Interim  of  is.  per 
share,  tax  free. 


in  leserve,  but  apart  from  thit  the  company  could  produce 
nearly  a  million  lbs.  a  year  without  being  too  greedy,  and  in 
that  case  the  aU-in  cost  might  be  reduced  to  iid.  under  war 
conditions   and  9d.   subsequently. 


Tea,  Oil  and   Rubber. 


Tliere  U  nothing  much  new  to  be  said  about  the  Rubber 
market  this  week.  After  dropping  to  2s.  ij^d.  the  price  of 
standard  crepe  recovered  to  2s.  aj^d.  on  the  idea  that  the 
Government  may  be  persuaded  to  take  control  of  the  industry. 
What  a  farce,  at  a  time  when  every  business  in  the  country 
which  has  had  any  experience  of  what  that  means  is  praying 
to  be_  released  from  the  horrible  affliction  of  "flappers"  in 
Whitehall  !  That  is  really  what  it  comes  to,  and  the  male 
flappers  without  any  experience  of  the  trades  with  which  they 
interfere  are  much  more  dangerous  than  the  china-saucer  tea- 
making  phalanx  which  is  the  outer  defence  of  the  existing 
bureaucratic  system.  Let  us  suppose,  however,  that  the  panic- 
inongering  stale  bulls  get  the  control  they  desire,  what  will  be 
the  result  ?  Whv,  that  every  pound  knocked  off  cf  tput  increases 
the  cost  of  production  and  reduces  the  possible  dividend  that 
may  be  paid  !  It  is  true  tj^at  in  a  free  market  prices  would 
possibly  fall,  for  a  time  at  any  rate,  more  than  they  will 
temporarily  ,under  control,  but  Hit  Is  very  difficult  1p  Jsee 
where  -the  compensation  comes  in.  It  is  of  the  essence  of  the 
scheme  that  the  rubber  shall  be  stored  in  the  trees — a  ntost 
excellent  idea — but  when  everybody  knows  it  is  there,  and 
growing  all  the  time,  when  is  the  boom  going  to  materialise? 

liATU  Caves  Ridber  Co,  Ltd.— Year  to  December  ji.  Capi- 
tal ^26,750,  in  £i  shares;  reserve  ^^5,000.  Output  780,800  lbs., 
increase  78,000  lbs.  Nett  profit  ^6,000  less  at  2'(>i,24o,  and  the 
dividend  for  the  year  is  reduced  from  210  per  cent,  to  180 
pfer  cent.,  while  the  carry  forward  is  increased  by  £j,ooo  to 
;f  17,940.  The  company  is  one  of  the  oldest  and  best,  but  it  is 
terribly  out  of  date  in  the  matter  of  supplying  full  information 
about  its  operations.  No  details  are  given  as  to  average  sell- 
ing price,  costs,  age  of  trees,  and  other  items  which  are  of 
public  interest,  but  doubtless  the  shareholders  regard  even 
the  reduced  dividend    paid  this  time  as  sufficient  compensation. 

Lanadeon  RiBBER  EsT.ATEs,  LTD.— Year  to  December  31  -. 
Capital,  ;^2i5,ooo  in  £1  shares.  Reserve,  ^^60,000.  Output. 
1,401,400  lbs.;  increase,  120,000  lbs.;  average  price,  2s.  4.o2d. 
against  23.  7.85d.  ;  all-in  cost,  is.  3.9od.  against  ii.74d.  Nett 
profit  amounted  to  £3q,3oo,  a  decrease  of  ^47,000,  and  after 
paying  an  interim  dividend  of  5  per  cent,  (against  10  per  cent, 
for  1916)  it  is  proposed  to  place  /8,ooo  to  reserve  (raising  it 
691,500  lbs.,  increase  50,000  lbs.  ;  average  price,  2s.  3.32d. 
was  paid  for  excess  duty,  and  this  time  ;^4,i3o  is  deducted  in 
respect  of  1915,  but  there  is  a  claim  for  refund  of  duty  up  to 
the  end  o<  1917,  and  when  this  is  settled  the  shareholders  may 
%et  a  bit  more  out  of  the  profits.  The  planted  area  is 
5. 200  acres,  of  which  4,300  date  from  1908  or  previously,  while 
there  are  6,200  acres  in  reserve.  It  is  quite  certain  that  the 
output  can  be  increased  to  over  two  million  lbs.  whenever  it  is 
considered  desirable  to  do  so,  and  the  large  area  in  reserve 
gives  the  company   great  scope  for  future  development. 

Ledbury  Rubber  Estates,  Ltd. — Year  to  December  31. 
Caiiital,  j^io8,6oo  in  £1  shares.  Reserve,  ^^30,000.  Output, 
691,500  lbs.;  increase,  50,000  lbs.;  average  price,  2s.  3.32d. 
against  2s.  7.85d.  ;  all-in  cost,  is.  3.9od.  against  ii.74d.  Nett 
profit,  ;^34,76o,  a  decrease  of  ^20,000,  and  the  dividend  for 
the  year  is  reduced  from  32^^  per  cent,  to  20  per  cent.,  half 
of  which  has  been  paid  as  interim.  On  the  other  hand,  the 
carry  forward  is  increased  by  ^^12,000  to  ^^20,550.  Excess 
profits  duty  absorbed  ;^i4,8oo  up  to  the  end  of  1916,  but  nothing 
is  said  about  any  further  payment,  and  it  is  possible  even  that 
there  may  be  a  small  refund.  The  planted  area  is  2,220  acres, 
of  which  1,360  acres  go  back  nine  years  or  more,  so  that  the 
trees  ought  to  be  nearly  at  their  full  tapping  strength  if  it 
should  be  desired  to  put  them  to  the  test.     There  are  550  acres 


Answers  to  Coprespondents. 


','  A  Key  to  ttteso  Answers  will  be  posted  early 
each  week  for  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  tor  six  months,  or 
Ss.  3d,  tor  three  months. 

Deposits  against  future  queries  may  be  lodged 
with  the  Publisher. 

Safety. — Your  schemes  are  most  ingenious,  but  we  require 
time  to  weigh  them,  and  cannot  give  a  satisfactory  reply  in 
this  column. 

J.  S. — No.  we  think  they  should  be  kept.  Good  reason  is 
given  for  postponing  the  interest.     It  is  turned  into  capital. 

Henry. — (i)  Good;  pays  about  6  per  cent,  at  4i.  (2)  Rather 
uncertain,  but  pays  about  6J  per  cent,  if  bought  at  4  or  under. 
(3)  Also  risky,  but  if  bought  at  3-2,  or  under,  yields  about  7$ 
per  cent,  meantime  and  while  'the  war  lasts.  (4)  Probably  all 
right  for  a  present  if  bought  under  par. 

John  Street. — We  do  not  know  what  you  consider  "cheap." 
Russian  shares,  for  instance,  are  in  one  sense  "  dirt  cheap," 
but  before  they  come  back  to  yields  you  may  have  years  to 
wait.  They  offer  the  far-off  chance,  however,  and  may  be 
worth  picking  up  at  from  is.  to,  at  most,  2S.  6d.  the  pound 
share. 

Ruskin. — Hardly  on  its  merits  just  now,  but  there  is  the  pos- 
sibility that  the  Government  may  be  forced  to  do  something. 

M.  I.  G. — The  report  is  due  shortly,  and  you  might  wait 
until  it  is  published.  It  is  expected  to  be  good,  but  should  the 
price  advance  sharply  on  it,  )'OU  might  take  your  profit. 

Underground. — (i)  Very  doubtful.  We  do  not  think  they  are 
worth  touching.  (2)  Has  had  considerable  trouble  with  its 
plant,  but  company  is  well  supported,  and  the  shares  are  a  fair 
speculative  purchase  if  you  are  prepared  to  wait. 

N.  H.  S. — The  report  is  a  good  one  and  the  position  strong. 
Having  waited,  we  think  you  might  hold  on  a  little  longer,  as 
there  is  a  possibility  of  a  further  rise. 

A.  L. — Yes,  quite  the  right  thing  to  do.  Yqu  can  probably 
get  nearly  the  middle  price,  and  the  difference  between  that  and 
the  redemption  value  will  be  more  than  made  up  by  the  pre- 
mium on  the  Government  bonds. 

Mains. — You  can  consider  it  as  5s.  for  the  past  year,  but  if 
you  are  in  any  doubt  you  are  always  entitled  to  ask  the  com- 
pany. 

S.  P.  B. — You  can  only  do  so  by  cashing  sufficient  certifi- 
cates each  year  to  represent  5  per  cent,  on  your  actual  outlay: 
this  will  leave  you  with  your  original  capital  to  be  returned  to 
you. 

G.  H.  I. — The  dividends  are  paid  free  of  tax,  there  are  ex- 
pectations of  a  bonus,  and  also  rumours  of  amalgamation. 
Under  the  circumstances  there  is  no  haste  to  sell,  but  the 
market  should  be  watched. 


ISkitish  Solth  Afkica.v  E.ki'Lusives  Co.,  Ltd. — In  the  year 
to  October  31  last  results  were  very  much  the  same,  as  in  the 
previous  12  'months.  Sales  were  larger,  but  the  bulk  of  them 
were  under  a  co-operative  arrangement  which  came  into  force 
on  March  i,  1917,  and  nett  profit  is  ^^4,000  lower  at  ^^73,000. 
However,  less  was  required  for  factory  depreciation,  and  after 
again  paying  a  dividend  of  11  per  cent.,  the  amount  carried 
forward  is  practically  unchanged  at  ;^63,56o.  Nothing  in  the 
balance-sheet  calls  for  remark. 

The  production  of  Turkish  tobacco  from  the  crop  now  grow- 
ing in  the  Union  of  South  Africa  is  estimated  at  250,000  to 
300,000  lbs. 

As  a  token  of  practical  sympathy,  the  Red  Cross  South 
Africa  has  just  cabled  ^10,000  to  the  British  Red  Cross 
Society,  London,  to  assist  in  meeting  the  additional  strain  im- 
posed upon  its  resources  "Bj-  the  present  great  struggle. 


THE   LONDON  CITY  AND  MIDLAND  BANK, 
LIMITED. 


NOTICE  IS  HEREBY  GIVEN  that  the 
Transfer  Books  of  the  Company  will  be  closed  on 
the  22nd  June,  1918,  for  that  day  only,  for  the 
preparation  of  the  Dividend  payable  on  the  15th  July,, 
1918. 

J.  F.  DAVIS,  Registrar. 

15th  June,  1918. 


6o8 


^be  Jnveetors'  IReview. 


June 


191S. 


COMPANY  MEETINGS. 

EBBW    VALE    STEEL   IRON    AND    COAL. 

UROAD  POLICY  OF  EXPANSION. 
ADDITIONAI,   CAPITAL  APPKOVKD. 

The  fihy-first  ordinary  general  meeting  of  the  shareholders  of 
the  Ebbw  Vale  Ste<;l,  Iron  and  Coal  Company,  Ltd.,  was  held 
on  Wednesday  at  the  Cannon  Street  Hotel,  E.G.,  under  the 
presidency  of  Colonel  Sir  Charles  Allen,  V.D.  (the  chairman  of 
the  company). 

The  Secretary  (Mr.  liertram  Northgraves,  A.C.I.S.)  having 
read  the  notice  calling  the  meeting, 

The  Chairman  said :  Vou  understand  that  there  i~  no  auditors' 
report  to-day,  so  there  is  nothing  to  be  read  in  that  respect. 
Ladies  and  gentlemen,  in  rising  to  move  the  .adoption  of  the 
report  circulated  among  the  shareholders  for  this  meeting,  I 
presume  it  is  your  wish  that  we  may  take  it  as  read.  You  will 
gather  from  the  first  paragraph  th.-it  In  consequence  of  the 
delay  in  arriving  at  a  settlement  with  the  GovernmeiU  Control 
authorities  upon  minor  questions  reliating  to  excess  profits  tax, 
munitions  levy,  and  coal  mines  control  finance,  your  board  are 
una'ble  to  present  a  balance-sheet  and  statement  of  accounts 
for  the  past  financial  year.  They  regret,  therefore,  there  is  no 
alternative  but  to  adjourn  this  part  of  our  usual  annual  pro- 
ceedings until  some  future  date.  There  is,  however,  no  need 
for  anxiety,  as.  I  am  pleased  to  be  able  to  assure  you  to-day 
that  this  omission  by  no  means  prevents  your  board  "from  deal- 
ing with  the  approximate  figures  placed  before  them,  and  ihey 
have  come  to  the  conclusion,  after  making  liiberal  allowance 
for  contingencies,  with  the  sanction  of  the  Treasury  and  con- 
currence of  our  auditors,  that  they  are  fully  justified  in  recom- 
mending the  distribution  and  confirmation  of  the  dividends 
as  set  forth  in  the  report.  It  is  my  intention  to  submit  for 
your  adoption  the  necessary  re.^olution  to  this  effect  in  due 
course. 

CONIIMUED    IMPROVEMENT. 

Before  approaching  the  more  important  subjects  of  to-day's 
proceedings,  I  feel  it  would  be  agreeable  to  you  to  have  a 
brief  statement  concerning  the  past  year's  o,perations,  as  you 
may  well  imagine  that  our  various  manufacturing  departments 
and  collieries,  in  common  with  all  controlled  establishments, 
have  experienced  their  full  share  of  anxiety  and  difficulties! 
This  condition  of  affairs,  however,  has  not  to  any  serious  ex- 
tent interfered  with  the  steady  output  of  materials  and  con- 
tinued improvement  of  our  productive  capacity.  As  a  convinc- 
ing proof  of  the  volume  of  work  executed  under  these  strenuous 
conditions,  I  have  only  to  mention  that  the  wages  paid  to  the 
workmen  exceeded  all  previous  records,  amounting  to  over  two 
millions  sterling.  In  addition  to  this,  the  company  has.  con- 
tinned  the  patriotic  grant  to  the  dependents  of  their  officials 
and  workmen  who  are  still  gallantly  fighting  the  country's 
battles,  the  amount  distributed  this  year  being  ;£35,ooo,  bring- 
ing u.p  the  total  since  the  outbreak  of  war  to  the  formidable 
figure  of  about  ;^i5o,ooo.  Altogether,  after  passing  through 
this  trying  year,  we  consider  the  re-sults  quite  satisfactory.  They 
could  not,  however,  have  been  attained  without  the  untiring 
energy  and  patience  of  our  managing  director,  Mr.  Mills,  and 
the  loyal  staff  of  officials  under  him,  who  have  so  bravely  borne 
the  heat  and  burden  of  the  day.  As  regards  the  working  of 
our  collieries,  they  have  been,  and  are  still,  under  rigid  Govern- 
ment control,  but  I  propose  to  leave  any  other  matters  of 
interest  on  this  subject  in  the  hands  of  my  colleague,  Mr. 
Beynon,  when  he  rises  to  second  my  resolution. 

GROWTH    OF    THE    BUSINESS. 

As  the  business  we  have  to  bring  before  3'ou  to-day  will 
necessarily  take  rather  longer  than  is  usual  at  our  annual 
meetings,  I  have  purposely  restrained  my  remarks  on  the  past, 
and  come  at  once  to  the  elaborate  scheme  '-et  forth  in  detail 
in  our  report  for  raising  the  necessary  additional  capital  and 
adjusting  the  financial  affairs  of  the  company  so  as  to  place 
them  on  a  sound  and  permanent  footing.  It  is  really  the  out- 
come of  our  persistent  and  vigorous  policv  of  expansion  and 
■consolidation  which  your  board  have  for  so  many  years  past 
strongly  advocated,  and  consider  now,  more  than  ever,  an 
imperative  enterprise  in  order  to  succeeed  in  maintaining  our 
position  in  the  first  rank  of  iron,  steel,  and  coal  producers.  It 
is  due  to  your  generous  confidence  and  support  in  the  past 
that  the  scheme  has  matured  and  grown  much  more  quickly 
than  was  originally  expected  ;  besides,  we  have  to  thank  our 
Government  administrators  for  giving  it  a  helping  hand  by 
their  most  sympathetic  support  and  rendering  every  possible 
assistance  in  speeding  up  our  development  schemes.  They 
fully  realise  how  very  important  it  is  that  not  only  in  time  of 
war,  but  in  peace,  the  manufacturers  of  this  country  should  be 
assisted  on  a  sufficiently  substantial  .scale  in  order  to  be  pre- 
pared to  satisfy  all  home,  colonial,  and  foreign  demands,  and 
become  independent  of  tlie  importation  of  any  foreign  articles 
we  are  able  to  produce  ourselves.  It  is  with  this  important 
object  in  view  that  your  board  ask  for  additional  capital,  which 
will  place  our  cst.iblishment  in  an  impregnable  position  against 
foreign  competition  and  foreign  imports  of  raw  material  in  the 
future. 

PROPOSED  NEW  CAPITAL. 

Ladies  and  gentlemen,  you  will  see  from  the  report  in  your 
"hands  and  in  the  notices  which  have  been  sent  out  with  that 
report  that  we  have  obtained  the  sanction  of  the  Treasury  for 


an  increase  of  our  capital  and  debentures  to  a  icrtal  nominal 
amount  of  ;f2,ooo,ooo,  of  which  ;^6oo,ooo  will  be  debentures, 
;f8oo,ooo  ipreferenoe  shares,  and  ;£6oo,ooo  ordinary  shares.  This 
meeting  will  be  followed  by  an  extraordinary  general  meeting 
of  the  company  and  separate  meetings  of  both  the  preference 
;ind  ordinary  shareholders,  at  which  I  shall  have  to  explain^  in 
detail  the  effect  of  the  resolutions  for  carrying  out  the  pro- 
posals referred  to  in  the  report,  but  as  this  is  a  general  meeting 
at  which  both  classes  of  shareholders  an-  represented  it  may  be 
convenient  for  me  to  give  you  now  a  general  outline  of  the 
matter.  Firstly,  as  regards  rate  of  interest  on  debentur-;.  and 
preference  shares,  which  in  the  case  of  the  existing  dcbcnturos 
and  preference  shares  is  to  be  rai-sed  r'.spectively  from  5  fer 
cent,  to  6  per  cent,  and  from  6  per  cent,  to  7  per  cent.,  the 
directors,  after  taking  the  best  financial  opinion  available,  were 
advi.sed  that,  having  regard  to  the  high  rate  of  interest  which 
money  now  commands  (it  is  only  necessary  in  this  connection  to 
refer  to'the  fact  that  the  premier  security  in  the  world — ^namely. 
Rritish  Government  stocks — pay  5  per  cent.),  it  would  be  diffi- 
cult to  obtain  the  large  sum  of  money  required  on  debentures 
and  preference  shares  of  an  industrial  company  at  a  lesser  rate 
of  interest  than  6  per  cent,  and  7  per  cent,  re.spectively,  and 
it  was  obvious,  therefore,  that  as  the  new  securities  would  bear 
this  rate  of  interest  the  corresponding  classes  oi  the  company's 
existing  issues  would  have  to  be  increased  to  the  .'-ajne  figure, 
and  I  do  not  suppose  that  either  the  existing  debenture  holders 
or  preference  shareholders  will  have  any  objection  to  receiving 
such  increased  rate  of  interest.  As  regards  the  ordinary  share- 
holders, we  are  following  on  this  occasion  the  preced'-nt  of  the 
last  issue — that  is  to  say,  we  are  going  to  offer  at  25s.  per  share 
the  whole  of  the  600,000  ordinary  shares  to  the  existing  prefer- 
ence and  ordinary  shareholders  in  the  .proportion,  as  nearly  as 
may  be,  of  two  new  shares  lor  every  £^  of  capital  held  by  the 
existing  shareholders.  As  the  existing  £^  preference  shares  are 
to  be  sub-dividod  into  five  shares  of  £1  each,  this  will  give 
every  holder  of  five  preference  shares  or  five  ordinary  shares 
the  right  to  take  up  two  of  the  new  ordinary  .shares  at  25s.  per 
shares,  and  as  the  present  price  of  the  shares,  including  the  divi- 
dend now  payable,  is  in  the  neighbourhood  of  30s.  per  share, 
the  shareholders  will  see  that  the  offer  is  advantageous  from 
their  point  of  view. 

UNDERWRITING    ARRANGEMENTS. 

The  sum  of  money  to  be  laised— namely,  ;f2,ooo.ooo — is,  as 
the  shareholders  will  appreciate,  a  very  large  sum  to  raise  in 
times  like  the  pre.sent,  and  therefore  the  directors,  in  the  in- 
teiests  of  the  company,  thought  it  desirable  to  make  arrange- 
ments by  which,  whatever  happens,  the  money  required  will  be 
secured.  They  have,  therefore,  entered  into  a  contract  with 
the  Imperial  and  Foreign  Corporation,  Ltd.,  by  which  that 
corporation  has  agreed  to  buy  the  whole  of  the  debentures  at 
£g2  los.  per  cent,  and  the  whole  of  the  preference  .shares  at 
par,  and  to  underwrite  the  600,000  ordinary  shares  at  the  issue 
price  of  25s.  a  sh.nre.  The  debentures  will  be  issued  at  95,  and 
the  corporation  will  receive  a  commission  of  is.  4jd.  per  share 
on  the  preference  shares  and  a  commission  at  the  rate  6i  3  per 
cent,  in  respect  of  the  ordinary  shares.  The  corporation  will, 
of  course,  bear  the  whole  of  their  own  expenses  in  regard  to  the 
placing  by  them  of  the  debentures  and  preference  shares. 
Having  regard  to  the  magnitude  of  the  issue  and  the  critical 
times  in  which  we  stand,  the  directors  are  satisfied  that  the 
terms  arranged  are  not  only  reasonable,  but  favourable  to  the 
company.  The  directors  have  received  an  assurance  from  the 
Imperial  and  Foreign  Corporation  that  in  the  event  of  any  of 
the  existing  debenture  holders  or  shareholders  of  the  company, 
when  the  debentures  and  preference  shaires  are  offered  for  saV, 
making  application  therefor,  that  such  applications  will  receive 
full  and  favourable  consideration  from  the  corporation.  I 
ought,  perhaps,  to  tell  you  that  it  has  been  thought  desirable  to 
insert  in  the  agreement  a  provision  enabling  either  party  to  ask 
fc  a  postponement  of  the  issue  i*  tiiircs  are  unfavourable,  and 
we  have  made  arrangements,  should  we  not  agree,  for  a  gentle- 
man in  whom  we  have  every  confidence  being  the  referee  as  to 
the  time  for  which  the  i.ssue  should  be  postponed,  but  such 
postponement  does  not  relieve  the  Imperial  and  Foreign  Cor- 
poration, Ltd.,  from  their  obligations,  but  only  postpones  them. 

DEVELOPMENT  OF  HOME  INDUSTRIES. 

Now,  gentlemen,  having  explained  the  terms  and  conditions 
upon  which  our  new  capital  will  be  jaised,  it  is  only  reasonable 
you  would  wish  to  know  something  as  to  how  it  is  to  be  profit- 
ably employed.  I  will,  therefore,  endeavour  to  explain  the 
.principal  features  of  advantage  which  your  board  feel  sure  will 
fully  justify  the  ei^genditure,  and  with  firm  conviction  that  few 
commercial  undertakings  can  offer  more  promising  an3  brighter 
prospects  when  the  happy  daj-s  of  victory  and  peace  follow  th's 
terrible  war.  In  the  first  place,  we  must  reSect  for  a  moment 
upon  the  perilous  position  of  the  iron  and  steel  trade  in  this 
country  prior  to  the  outbreak  of  war.  It  is  impossible  to  forget 
that  the  unscrupulous  dumping  process  of  the  Germans  had 
nearly  succeeded  in  driving  our  ordinuary  he.nvy  steel  trade  on 
the  rocks  of  ruination.  Thank  goodness,  this  incubus  is  being 
effectually  removed,  with  no  chance  of  it  ever  appearing  again. 
Manufacturers  can  expand  without  the  fear  of  being  stifled  by 
unfair  treatment.  It,  therefore,  becomes  more  than  ever  a 
question  of  national  and  vital  importance  to  us  to  make  vp 
for  lost  time  by  encouraging  the  production  of  home  industries. 
I  wish  now  particularly  to  emph.nsise  the  fact  that  we  shall  b" 
the  first  establishment  in  South  Wales  producing  steel  entirely 
independently  of  foreign  imports  of  raw  materials. 


June  22,  igi8. 


XTbe  Jnvestots'  TReview. 


609 


IMPORTANT    PURCHASE. 

I  would  remind  you  also  that  it  is  about  four  j'ears  ago  since 
your  board  paid  their  first  visit  of  inspection  to  the  iron  ore- 
bearing  properties  in  Xorthamptonshire  in  contemplation  of 
providing  for  their  needs  a  regular  supply  of  mineral  from  the 
deposits  in  this  country.  Since  then,  as  reported  from  time 
to  time  at  general  meetings,  we  have  concluded  a  purchase  of  an 
extensive  property,  which  is  estimated  to  yield  a  mineral  emi- 
nently suited  for  our  steel-making  process,  and  to  satisfy  our 
needs  for  at  least  the  next  40  years,  upon  such  terms  as  will 
always  compare  most  favourably  with  the  lowest  prices  of  im- 
ported ore  of  a  similar  character.  Step  by  step  in  all  our 
deliberations  your  board  have  consulted  and  been  guided  by  the 
advice  of  the  most  reliable  and  experienced  experts  available. 
This,  gentlemen,  has  been  our  ambition  for  years  past,  and  may 
be  regarded  as  the  main  plank  in  our  broad  policy  of  expansion 
as  iron  and  steel  manufacturers.  You  will  readily  understand 
that  there  is  always  an  element  of  speculation  in  any  deposit 
underground  which  has  not  been  actually  seen  and  inspected.  I 
am  therefore  very  pleased  to  be  able  to  inform  }'0u  to-day  .that 
any  misgivings  in  this  connection  entirely  disappeared  last 
Friday,  when  your  board  paid  one  of  their  periodical  visits 
of  inspection,  and  had  the  gratification  of  examining  for  them- 
selves, in  company  with  their  experts,  the  underground  work- 
ings driven  into  the  main  body  of  these  deposits,  and  I  am 
able  to  declare  that  both  the  quality  and  quantity  are  fully 
up  to  our  expectations  and  absolutely  assured.  The  general 
development  work  has  been  pushed  ahead  as  quickly  as  present 
circumstances  will  permit.  A  tunnel  measuring  some  15  ft.  by 
12  ft.  and  t,ooo  yds.  in  length,  has  been  driven  in  order  to 
convey  the  ore  direct  to  the  new  cluster  of  calcining  stoves, 
which  are  capable  of  dealing  with  some  10,000  tons  per  week. 
These  stoves  are  erected  on  a  site  in  direct  communication  with 
the  mine,  and  are  constructed  upon  the  most  advanced  and 
economic  methods.  They  are  now  on  the  point  of  completion, 
and  it  is  estimated  that  they  will  be  ready  for  starting  about 
next  September.  The  railway  sidings  have  been  connected  up 
with  the  main  line,  and  altogether  excellent  and  rapid  progress 
has  been  made  in  the  completion  of  the  whole  of  this  vast  under- 
taking. 

CONTROL  OF  ADJOINING  COLLIERIES. 

Our  programme  of  expansion  includes  an  arrangement  by 
which  we  control  the  adjoining  collieries  to  our  own,  thereby 
removing  competition  and  reducing  the  standard  charges  upon 
an  output  of  something  like  4,000,000  tons  of  the  best  Welsh  coal 
raised  in  this  country.  We  have  augmented  and  equipped  our 
magnificent  steel  and  coke  plants  with  the  most  up-to-date  and 
advanced  machinery,  and  may  justly  claim  to  be  absolutely  self- 
supporting,  and  in  the  happy  position  of  being  able  to  declare 
that  not  only  everj'  penny  in  wages  paid  for  the  manufacture 
of  our  products  will  go  directly  into  the  pocket  of  the  British 
workman,  but  every  article  we  produce  will  be  manufactured 
from  our  own  raw  materials,  and  will  be  labelled  "  entirely 
British."  It  is  possible  some  shareholders  might  imagine  that 
the  expenditure  already  incurred  upon  plant  for  the  produc- 
tion of  munitions  of  war  might  become  unproductive  when 
peace  is  restored.  I  am  very  anxious  that  it  should  be  dis- 
tinctly understood  that  such  is  not  the  case,  and  that  every 
penny  outlay  on  expansion  can  be  turned  to  profitable  account 
whenever  the  demand  for  war  material  ceases. 

USE  OF  ELECTRIC  POWER. 

As  doubtless  many  of  you  are  well  aware,  the  rapid  growth  of 
ihe  use  of  electric  power  is  becoming  a  matter  of  vital  im- 
portance to  all  manufacturing  concerns,  and  a  most  valuable 
asset  to  those  who  possess  cheap  means  of  production.  Now,  I 
p.m  anxious  that  you  should  understand  that  with  the  large  ex- 
tensions to  our  blast  furnace  plant,  coke  oven  and  by-product 
plant,  we  have  an  enormous  increase  in  the  volume  of  what  'is 
commonly  termed  "waste  gases,''  which  not  many  years  ago 
were  thrown  to  the  winds.  These  are  now  being  turned  into  a 
most  useful  and  profitable  purpose — that  is  to  say,  the  produc- 
tion of  sufficient  electric  power  to  enable  us  to  electrify  the 
whole  of  the  company's  property,  not  only  the  iron  and  steel 
works,  but  the  collieries  in  Ebbw  Vale  and  the  adjoining  val- 
leys. This  alone  is  an  immense  saving  upon  antiquated  prac- 
tices. Work  is  now  in  hand  and  nearly  completed,  which  will 
connect  our  newly  acquired  coal  properties  with  our  central 
power  station  at  Ebbw  Vale,  so  that  these  mines,  situated 
several  miles  distant,  will  derive  their  power  from  the  so-called 
"waste  gases"  available  from  the  production  of  iron  and  coke. 
It  will  therefore  be  seen  that  the  most  economical  and  up-to- 
date  use  is  being  made  of  the  company's  resources  and  the  profit- 
able utilisation  of  what  at  one  time  was  entirely  lost.  Your 
board  have  not  lost  sight  of  the  importance  of  providing  modern 
dwelling  houses  and  comfortable  surroundings  for  their  work- 
men. In  conclusion,  gentlemen,  I  wish  to  express  my  thanks 
for  your  presence  here  to-day,  and  your  kind  consideration  and 
patience  in  listening  to  ray  somewhat  lengthy  remarks.  Your 
board  were  particularly  anxious  to  emphasise  the  advantages 
of  their  enterprising|  scheme  of  expansion,  and  while  we  may 
be  hampered  and  restricted  at  the  moment  by  war  condition.?, 
there  is  no  time  like  the  present  to  prepare  by  every  means 
in  our  power  towards  rendering  a  helping  hand  in  the  economic 
recovery  from  the  wastage  of  this  great  war— a  matter  of  such 
national  and  vital  importance  to  the  future  welfare  of  thi? 
country  and  an  assured  protection  to  our  own  future  prosperity 
and  that  of  the  rising  generation.     With  these  remarks,  gentle- 


men,  I    beg  to  ask  my  colleague,   Mr.    Beynon,   to   second  the 
resolution    which    I    now    be^'    to   move — namely,     "  That    the 
directors'  report  be  approved  and  adopted." 
MR.  BEYNON  ON  THE  POSITION. 

Mr.  John  W.  Beynon  said  :  Ladies  and  gentlemen,  I  rise  to 
second  the  resolution  which  has  been  proposed  by  our  chairman. 
Sir  Charles  Allen.  After  the  admirable  way  in  which  he  has, 
as  usual,  placed  the  position  before  you,  and  in  view  of  the 
fact  that  we  have  this  afternoon  a  very  considerable  amount  of 
formal  business  to  transact,  I  propose  to  limit  my  remarks,  to 
the  briefest  possible  dimensions.  As  the  director  most  inti- 
mately connected  with  the  colliery  side  of  your  undertaking,  I 
would  just  say  a  few  words  as  regards  the  collieries.  As  all 
shareholders  are  aware,  it  is  of  vital  importance  to  all  collieries, 
and  more  particularly  to  South  Wales  collieries,  to  be  able  to 
rely  on  regular  working  for  profitable  production.  Unfortu- 
nately, the  activities  of  German  submarines  during  the  year 
under  discussion  have  very  considerably  interfered  with  the 
regular  supplies  of  tonnage,  with  the  result  that,  in  common 
with  most  Monmcuthshirs  collieries,  your  collieries  have 
suffered  a  very  considerable  amount  of  lost  time,  with  the 
result  that  the  cost  of  production  has  very  materially  increased. 
It  is  no  doubt  within  the  remembrance  of  shareholders  that 
some  time  ago  the  Government  granted  to  all  workmen 
employed  in  collieries  a  war  bonus  of  is.  6d.  a  day,  which 
bonus  was  paid  whether  there  was  work  at  the  colliery  or 
whether  the  colliery  was  idle.  Naturally,  with  the  irregular 
working,  the  incidence  of  that  war  bonus  very  considerably 
increased  the  cost  of  production.  I  am  glad  to  say  that  now 
the  British  Navy  has  successfully  grappled  with  the  submarine 
menace,  the  supply  of  tonnage  has  for  the  past  few  months 
been  adequate  for  our  requirements,  with  the  result  that  your 
collieries  have  been  able  to  work  full  time,  and  so  long  as  your 
collieries  have  regular  work  they  will  be  a  satisfactory  and  a 
remunerative  property.  Naturally,  the  comb  out  of  young 
miners  of  Grade  A  between  the  ages  of  18  and  23  is  affectiiig 
the  man  nower  of  all  collieries  throughout  the  kingdom,  but,  m 
common  with  all  other  staple  industries,  we  must  accept  this  as 
one  of  the  many  burdens  placed  upon  our  shoulders  by  this 
terrible  war.  I  may  say  that  the  output  of  all  your  collieries 
has  for  some  time  past  been  strictly  controlled  by  the  Govern- 
ment; the  bulk  of  the  production  is  being  taken  by  the  British 
Government  either  for  use  in  His  Majesty's  Navy  or  for  use 
among  the  consumers  of  Great  Britain  and  by  the  C^jvernment?; 
of  our  Allies,  leaving  but  a  very  small  portion  for  sale  in  neutral 
countries.  I  should  like  to  mention,  in  passing,  the  honour 
which  has  been  bestowed  upon  the  Coal  Controller.  Sir  Guy 
f:althrop  has  filled  a  very  difficult  position  in  a  very  admirable 
manner,  and  I  am  sure  that  everyone  connected  with  the  coal 
trade,  and  particularly  those  who  have  had  the  privilege  of 
coming  into  personal  contact  with  Sir  Gu^  Calthrop,  will  join 
in  congratulating   him  on    an    honour  fittingly  bestowed    and 

worthily  won. 

A  WELL  CONSIDERED  POLICY. 

Your  chairman  has  touched  lightly  on  the  many  developments 
which  are  now  taking  place  at  Kbbw  Vale.  Unfortunately 
your  directors  are  not  permitted  to  go  too  fully  into  all  the 
developments  which  are  taking  place.  I  will  merely  say  that 
those  developments  are  part  of  a  well-considered  policy  whirh 
had  been  adopted  by  this  board  some  time  ago,  and  are  merely 
being  speeded  up  to  meet  the  requirements  of  the  Government 
and  the  exigencies  of  the  war.  Naturally  those  developments 
necessitated  a  large  increase  in  capital  outlay,  and  in  consider- 
ing this  issue  your  directors  had  in  mind  the  keeping  of  a 
proper  balance  between  debentures,  preference  issue,  and 
ordinary  share  capital.  With  the  vastly  increased  value  of 
your  assets  this  company  could  reasonably  carry  a  larger 
amount  of  debenture  and  preference  issue,  but  it  would  hardly 
be  fair  to  ask  the  holders  of  those  securities  to  allow  a  large 
amount  to  be  placed  pari  passu  with  their  present  holdings 
unless  you  offered  them  some  inducement  to  consent  to  that 
proposition.  That  inducement  consisted  of  raising  the  interest 
on  the  debentures  from  5  per  cent,  to  6  per  cent,  per  annum 
and  on  the  preference  shares  from  6  per  cent,  to  7  per  cent, 
per  annum,  and  the  fact  that  your  board  has  received  a  very 
great  and  unexpectedly  large  amount  of  support  from  all  classes 
of  shareholders  proves  to  them  that  the  scheme  they  have  the 
honour  of  placing  before  you  has  met  with  the  general  approval 
of  the  shareholders  of  this  company.  Those  shareholders  who 
have  been  associated  with  this  company  in  the  past  will 
remember  the  time  when  the  credit  of  this  company  stood  none 
too  high;  when  the  shares  were  quoted  in  the  market  at  a  heavy 
discount ;  when  the  development  of  this  company  was  handi- 
capped bv  lack  of  credit  and  possibly  by  lack  of  courage  and 
imagination  on  the  part  of  previous  boards ;  when  your  direc- 
tors came  to  you  year  after  year  with  a  none  too  happy  story  to 
place  before  you,  and  when  1  fear  they  received  but  scant  con- 
sideration from  the  shareholders  for  the  very  difificult  position 
they  then  found  themselves  in.  To-day  your  shares  stand  at  a 
substantial  premium;  your  credit  stands  high;  your  assets, 
which  have  been  valued  on  a  pre-war  basis,  are  shown  to  be 
about  .^1,500,000  more  in  value  than  what  they  stand  at  to-day 
in  your  books ;  your  company  is  developing  in  many  waj's 
owing  to  spirited  and  progressive  management,  and  I  am  con- 
fident that  those  expansions  are  all  well  considered  and  all  tend 
to  greater  commercial  prosperity  and  financial  stability. 

FUTURE  PROSPECTS. 

One  word  as  to  the  future.  Naturally,  as  Sir  Charles  has 
said,  the  future  prosperity  of  this  company  depends  to  a  very 


6io 


Zbc  investors'  IReview. 


June  22,   1918. 


great  extent  on  our  power  of  bringing  this  war  to  a  satisfac- 
tory conclusion.  I  have  always  been  a  cast-iron  optimist;  I 
remain  one  to-day.  I  decline  to  believe  that  the  resources  of 
civilisation  are  going  to  be  overthrown  by  the  upstart  house  of 
HohenzoUern ;  I  decline  to  believe  that  this  world  is  fated  to 
groan  and  slave  under  the  iron  heel  of  a  Prussian  oligarchy;  I 
believe  that  in  the  near  future  this  country,  with  the  help  of 
her  Allies,  will  be  able  to  dictate  a  peace  which  will  mean  hap- 
piness and  tranquillity  for  many  generations  to  the  countries  of 
this  world  But  when  this  peace  arrives  much  of  the  future 
prosperity  of  thi»  country  will  depend  on  the  attitude  which 
labour  takes  up.  Hut  if  labour  will  play  the  part  in  future  that 
it  has  in  the  troublous  times  of  war  through  which  we  are  now 
passing,  I  believe  we  may  look  forward  to  a  time  of  great  in- 
dustrial expansion  and  prosperity.  If  this  war  has  taught  us 
one  thing,  it  has  taught  us  that  it  is  impossible  to  raise  the 
standard  of  wages  beyond  the  economic  level.  And  if  by  stress 
of  circumstances  that  level  is  passed,  then  the  cost  of  all  vital 
necessaries  of  life  so  rises  as  to  render  valueless  to  the  worker 
the  increased  wages  which  he  has  received.  If  I  were  tempted 
to  discourse  on  economics,  I  would  take  as  my  text  those  words 
in  Genesis  which  were  addressed  to  our  primeval  ancestors 
when  they  were  driven  out  of  Paradise,  "  By  the  sweat  of  thy 
brow  shall  thou  eat  thy  bread."  They  were  not  quite  poli- 
tical economists  in  those  da3's,  gentlemen,  but  on  that  simple 
sentence  rests  the  whole  structure  of  political  economy,  and 
though  nature  tolerates  the  presence  of  a  few  social  butterflies 
who  "  toil  not,  neither  do  they  spin,"  their  presence  only 
serves  to  accentuate  the  fact,  and  the  very  brutal  (act,  that  man 
exists  in  this  world  solely  in  proportion  to  his  economic  utility. 
We  cannot  hope  to  raise  the  standard  of  living  of  the  indus- 
trial population  of  these  islands  except  by  increased  produc- 
tivity of  the  working  classes  themselves,  by  the  scrapping  of  all 
out  of  date  metho3s  and  by  the  utilisation  of  all  forms  of 
labour-saving  devices.  If  the  labour  union  leaders  will  only 
drive  home  to  the  working  classes  that  their  happiness  and 
their  prosperity  depend  on  producing  to  the  utmost  of  their 
power,  then  I  have  no  fear  for  the  future  of  this  great  Empire 
nor  for  the  prosperity  of  this  great  company.  And  I  believe 
that  when  that  time  comes  you  will  find  that  your  directors  have 
not  been  neglectful  of  the  opportunities  of  to-day  nor  unmindful 
of  your  requirements  for  the  future. 

SHAREHOLDERS'   DISCUSSION. 

A  discussion  followed,  in  the  course  of  which  Mr.  llanford 
iaid  he  would  like  to  know  if  the  John  Lancaster  collieries, 
taken  over  by  the  company  a  few  years  ago,  were  being  worked 
•uccessfully. 

The  Chairman  replied  that  they  were  being  successfully 
worked. 

Mr.  Hanford.  continuing,  said  he  considered  it  was  rather 
a  new  departure  in  finance  to  give  holders  of  existing  deben- 
tures and  preference  share  capital  an  increased  rate  of  interest 
without  any  quid  pro  quo  being  offered  to  the  ordinary  share- 
holders. He  would  like  to  congratulate  the  board,  and  it  was 
particularly  satisfactory  to  know  that  theirs  was  a  self-con- 
tained enterprise. 

Mr.  W.  Badco  said  he  highly  appreciated  the  developments 
made  by  the  directors,  and  looked  forward  to  the  time  when 
the  Ebbw  Vale  would  take  its  place  side  by  side  with  the 
greatest  industrial  concerns  in  the  I'nited  Kingdom.  As  to 
the  new  capital  scheme  before  them,  he  was  not  yet  quite  satis- 
fied that  the  new  money  could  not  be  raised  in  the  form  of 
ordinary  capital  alone. 

Mr.  J.  n.  Lees  said  he  should  like  to  be  assured  that,  sup- 
posing the  scheme  went  through,  the  present  shareholders 
would  have  the  opportunity  of  acquiring  some  of  the  new  pre- 
ference shares. 

Mr.  Henry  Radcliffe  remarked  that  he  had  listened  with 
great  interest  to  the  speeches  of  the  chairman  and  of  Mr. 
Beynon,  and  he  wished  to  congratulate  them  both  on  the  ex- 
ceedingly able  way  in  which  they  had  conducted  the  company's 
business. 

Sir  James  Murray  said  he  would  like  to  put  the  question  of 
the  new  capital  from  what  he  might  call  the  Scotch  point  of 
view.  The  only  alternative  to  the  issue  of  the  whole  amount 
in  ordinary  shares  was  to  have  some  of  it  in  debentures  and 
preference  shares.  If  the  whole  amount  was  in  ordinary  shares 
it  would  mean  a  reduction  in  the  rdte  of  dividend  being  paid. 
That  was  the  whole  thing  in  a  nutshell.  People  who  took  ordi- 
nary shares  accepted  a  big  risk,  and  they  were  only  able  to 
obtain  full  value  for  that  risk  because  a  body  of  other  share- 
holders were  prepared  to  come  in  and  say,  "We  do  not  want  a 
big  profit  so  much  as  a  safe  one."  The  proposed  dividend  of 
7  per  cent,  on  the  preference  shares  was  not  a  verj'  big  return 
as  things  went  nowadays,  when  one  could  get  5  per  cent,  on 
British  Government  securities.  As  to  the  ordinary  share- 
holders, he  would  point  out  that  they  were  to  receive  an  ad- 
vantage of  5s.  per  share  on  any  shares  they  took  up.  and  no 
doubt  the  underwriters  wouFd  meet  them  fairly  in  regard  to  the 
number  they  might  wish  to  purchase.  In  the  directors  they 
had  a  first-class  body  ofTmsiness  men,  with  a  thorough  grip 
of  the  business,  and  he  would  like  to  see  them  given  a  per- 
fectly free  hand. 

THE   CHKIRMAN  B  SPEECH. 

Several  other   shareholders   having  .spoken. 

The  Chairman,  in  reply,  said  that  he  had  listened  to  the  re- 
marks which  had  fallen  from  the  various  shareholders,  .nnd  he 
woukl  try  to  .-mswer  them,  as  he  was  anxious  they  jhould  all 
go  away  satisfied.     With  regard  to  the  proposed  method  of  rais- 


ing the  new  capital,  he  would  point  out  that  if  it  were  all 
raised  by  ordinary  shares  the  question  of  maintaining  the  divi- 
dend at  15  per  cent,  might  be  a  difficult  one.  If  the  new 
capital  were  raised  by  an  issue  of  ordinary  shares  alone,  it 
would  require  an  extra  ^^300, 000  a  year  to  maintain  the  present 
rate  of  dividend,  whereas  nder  the  prvposed  scheme  it  would 
cost  the  company  only  ^^92,000  per  annum  in  preference  divi- 
dends and  other  interest.  By  the  proposed  method  a  niimber 
of  people  were  given  the  option  of  investing  their  money  in 
,1  security  which  returned  a  lower  rate  of  interest,  but  with,  as 
they  considered,  a  safer  security.  In  these  days  it  was  de- 
sirable to  give  every  branch  of  the  public  a  chance  of  investing 
in  such  securities  as  they  preferred.  The  cost  to  the  companj' 
was  the  factor  which  finally  settled  the  question  of  the  method 
in  which  the  new  capital  was  to  be  raised.  He  would  like  to 
say,  in  ansv/er  to  the  question  of  Mr.  Lees,  that  the  existing 
shareholders  could  apply  for  a.s  many  preference  shares  and  de- 
bentures as  they  would  care  to  take  up.  The  Imperial  and' 
Foreign  Corporation,  the  underwriters,  had  given  assurances 
that  every  shareholder  and  debenture-holder  should  have  the 
fullest  consideration  with  respect  to  any  applications  sent  in 
for  either  debentures  or  preference  shares. 

Mr.  Hanford  asked  if  the  ordinary  shareholders  would  also- 
have  a  look  in. 

The  Chairman  replied  that  they  would  be  able  to  put  in 
an  application.  One  gentleman  had  complained  about  the 
increased  rale  01  interest  on  the  existing  debentures  and  pre- 
ference c.Tpital  being  retrospective  :  but,  in  fact,  it  was  not 
retrospective,  as  the  increase  would  only  operate  as  from 
,\ugust,  1918.  .  .     . 

Mr.  Beynon  explained  that  in  order  to  obtain  the  permission 
of  the  existing  debenture-holders  and  preference  .shareholders 
to  place  a  large  amount  of  capital  pari  passu  with  that  already 
held  by  them,  some  inducement  in  the  way  of  an  increased" 
return  on  their  securities  had  to  be  given. 

Mr.  Radcliffe  said  that  that  was  the  answer  he  expected,  and" 
it  fully  and  satisfactorily  dealt  with  the  point  that  had  been 
raised. 

The  inotion    for   the  adoption  of  the  report  was  then    unani- 

mouslv  carried. 

THE   DIVIDEHD8. 

The  Chairman  then  moved  :  '  That  the  interim  dividend  paid 
on  the  preference  shares  for  the  half-year  ended  September  30 
1917,  be  confirmed;  that  a  dividend  be  declared  at  the  rate  of 
6  per  ccnl.  per  annum,  less  income-tax.  on  the  preference 
shares  for  the  half-year  ended  March  31,  iQi.-i.  payable  to  the 
shareholders  on  the  register  on  June  10,  1918.  That  an  interim 
dividend  of  1$  per  cent.,  less  income-tax,  be  declared  oa  the 
ordinary  shares  for  the  year  ended  March  31,  1918,  payable  to 
the   shareholders  on  the  register  on   June    10,   1918.  ' 

Mr.  Beynon  having  seconded  the  resolution,  it  was  unani- 
mously agreed  to. 

Sir  Henry  Mather  Jacison  said  that  his  tas,<  was  a  partiCTi- 
larlv  easy  one— namely,  to  propose  the  re-election  of  Colonel 
Sir' Charles  Allen  and  Mr.  John  Wyndham  Beynon  as  directors 
of  the  company.  It  was  a  particulrly  easy  task,  because  it  so 
happened  on  this  occasfon  that  the  two  retiring  directors  were 
those  to  whom  they  had  just  been  listening,  and  he  had  no 
doubt  whatever  that  their  speeches  had  left  a  strong  impres- 
sion  on  the  shareholders'  minds  that  the  success  of  the  com- 
pany very  largely  depended  on  the  re-election  of  those  gentle 
men  to  seats  on  the  board.  Sir  Charles  Allen  was  the  doyen 
of  the  board,  and  had  been  a  director  of  the  company  for  25 
or  26  years,  and  chairman— and  the  most  satisfactory  and  able 
chairman  he  had  proved  to  be  from  their  point  of  view— for  the 
last  three  years.  Mr.  Beynon  had  been  a  director  for  a  con 
siderable  time.  He  was  very  largely  interested  in  the  success 
of  the  undertaking,  and  had  a  very  intimate  knowledge  of  the 
working  of  those  industries  with  which  they  were  most  closely 
associated. 

Mr.   Radcliffe  seconded   the   motion,  which  was  unanimously 

carried.  .  .j     1, 

The  Chairman,  in  acknowledging  his  re-election,  said  that 
so  Ion''  as  the  board  continued  to  enjoy  the  confidence  of  th<- 
shareholders  they  would  be  happy  to  devote  their  best  energies 
for  promoting  their  interests.  He  hoped  to  have  the  pleasure 
of  meeting  them  again  next  year,  when,  he  trusted,  peace  and 
happiness  would  have  been  restored  to  this  great  nation. 

Mr.  Beynon  also  thanked  the  shareholders  for  his  re-election 
as  a  director. 

Mr  C.  Henrv  Charlton  proposed  :— "  That  the  directors  be 
authorised  to  appropriate  £^'Oo°  *»  charitable  purposes  for  the 
current  year." 

Captain  F.  E.  Hannah  seconded  the  resolution,  which  wa> 
passed  unanimously. 

On  the  motion  of  Mr.  Thompson  Jowetf.  seconded  by  Mr. 
RoBinson,  Messrs.  W.  B.  Peat  and  Co.  were  elected  auditors 
of  the  company  for  the  ensuing  year. 

The  Chairman  said  that  in  consequence  of  there  being  no  ac- 
counts he  had  to  move  the  adjournment  of  this  meeting  until 
such  time  as  the  board  were  able  to  present  the  shareholder- 
with  a  balance-sheet  and  statement  of  accounts.  It  was  merely 
a  forma!  matter.  The  directors  would  call  the  shareholders 
together  directly  the  accounts  were  ready. 

Mr.  Halford  seconded  the  motion  for  the  adjournment  and  it 
was  carried. 

The  Chairman  stated  that  this  concluded  the  busine.ss  of  tho 
ordinary  meeting,  and  they  had  now  to  proceed  to  the  extra- 
ordinary general  meeting. 


Jl\e  22,  iqi8. 


Wbe  Jnve«tor8'  "Keview* 


6;i 


P 


EXTRiOROIMARy    HEBTINO. 

An  extraordinary  general  meeting  was  next  held  for  the  pur- 
pose o£  considering,  and  i£  thought  fit  passing,  with  or  without 
amendment,  the  following  resolutions,  with  a  view  to  the  reso- 
lutions so  passed  being  subsequently  confirmed  as  special  reso- 
lutions : — 

"  I.  That  each  of  the  existing  80,000  preference  shares  of  ^5 
each  of  the  company  be  sub-divided  into  five  fully-paid  prefer- 
ence shares  of  £1  each. 

"  2.  That  the  capital  of  the  company  be  increased  from 
;/Ji,6oo,ooo  to  ;^3, 700,000  by  the  creation  and  issue  of  (i) 
800,000  new  preference  shares  of  £1  each,  entitling  the  holders 
thereof  to  a  cumulative  preferential  dividend  at  the  rate  of  £7 
per  cent,  per  annum,  and  ranking  as  to  dividends,  return  of 
capital  and  in  all  other  respects  pari  passu  with  the  existing 
preference  shares  of  the  company ;  and  (2)  by  the  creation  of 
1,300,000  ordinary  shares  of  £1  each,  ranking  as  to  dividends, 
return  of  capital  and  in  all  other  respects  pari  passu  with  the 
existing  1,200,000  ordinary  shares  of  the  company,  and  that 
the  directors  of  the  company  be  and  they  are  hereby  authorised 
to  issue  and  allot  such  new  preference  shares  and  600,000  ordi- 
nary shares  to  such  persons,  on  such  terms,  and  in  such  manner, 
in  all  respects  as  they  think  fit. 

"  3.  That  the  articles  of  association  of  the  company  be  altered 
in  manner  following,  namely  : — 

"  (a)  Article  39. — By  deleting  the  first  seven  lines  thereof 
from  the  word  '  subject '  down  to  the  word  '  notice '  inclusive 
and  the  word  '  specifying  '  in  the  eighth  line  and  by  substi- 
tuting therefor  the  following  words,  viz.  : — 

"  Subject  to  any  directions  to  the  contrary  that  may  be 
given  by  the  resolution  sanctioning  the  increase  of  capital 
all  new  ordinary  shares  shall  before  issue  (unless  they  may 
be  required  to  be  issued  for  the  purpose  of  payment  of  the 
purchase  price  of  any  property  acquired  or  to  be  acquired 
by  the  company)  be  offered  in  the  first  instance  only  to 
such  persons  as  are  holders  of  ordinary  shares  of  the  com- 
pany at  the  date  of  such  offer.  All  new  shares  other  than 
ordinary  shares  shall  (subject  to  any  directions  to  the  con- 
trary that  may  be  given  by  the  resolution  sanctioning  the 
increase  of  capital)  be  offered  in  the  first  instance  to  such 
persons  as  at  the  date  of  the  offer  are  entitled  to  receive 
notices  from  the  company  of  general  meetings.  Any  such 
offer  of  new  shares,  whether  ordinary  or  other  shares,  shall 
be  made  by  notice,  and  offered  in  proportion  as  nearly 
as  the  circumstances  admit  to  the  amount  of  the  existing 
shares  to  which  shareholders  are  entitled.  Such  notice 
shall  specify. 

"(b)  Article  44. — By  substituting  therein  the  words  'twice 
the  amount  of  the  paid-up  share  capital  of  the  company  for 
the  time  being  '  for  the  words  '  the  amount  of  the  paid-up 
share  capital  of  the  company  for  the  time  being.' 

"  (c)  Article  47. — By  omitting  therefrom  the  words  '  in  the 
month  of  June  in  every  year '  in  the  thir3  and  fourth  lines 
thereof. 

"  (d)  Article  66. — By  deleting  therein  all  the  words  from  the 
word  '  Member '  in  the  fifth  line  thereof  down  to  the  end 
of  the  article  and  substituting  therefor  the  following  -words, 
viz.  : — 

"  Upon  a  poll  every  member  present  in  person  or  by 
proxy  shall  have  one  vote  for  every  ordinary  share  held 
by  him  and  one  vote  for  every  five  preference  shares  held 
by  Mm. 

"  (e)  Article  72. — By  inserting  the  word  'four'  instead  of 
the  word  '  five.' 

"  (f)  Article  74. — By  adding  at  the  end  thereof  the  words 
'  All  such  remuneration  shall  be  paid  free  of  income-tax.' 

"  (g)  Article  97.— By  cancelling  clause  (a)  thereof  and  by 
aubstituting  the  following  new  clause  therefor,  namely  : — 
"  (a)  In  payment  to  the  holders  of  the  preference  shares 
of  a  fixed  cumulative  preferential  dividend  at  the  rate, 
until  the  31st  day  of  July,  1918,  of  £6  per  cent,  per  annum 
and  thereafter  at  the  rate  oi  £7  per  cent,  per  annum  and 
any  arrears  of  such  dividends." 

THB   RESOLUTIOHB   EXPLAINED. 

The  Chairman  said  :  I  have  already  explained  to  you  at  the 
last  meeting  the  main  outlines  of  the  proposals  for  raising  the 
fresh  capital,  and  it  is  perhaps  only  nece.ssary  for  me  to  give  a 
few  words  of  explanation  as  to  the  resolutions  you  have  heard 
read  by  fhe  secretary.  The  first  of  such  resolutions  is  to  effect 
the  sub-division  of  the  existing  £^  preference  shares  into  five 
fully  paid  preference  shares  of  £1  each,  so  as  to  bring  them 
into  line  with  the  new  preference  shares.  This,  of  course,  does 
not  in  any  way  affect  the  rights  of  the  existing  shareholders. 
On  the  contrary,  if  anything  it  improves  their  security,  in  that 
it  makes  them  more  marketable.  The  .second  resolution  pro 
vides  for  the  increase  of  the  capital  by  800,000  new  preference 
shares  and  also  for  the  increase  of  our  ordinary  capital  by 
1.300,000  shares.  I  ought  to  explain,  perhaps,  here  that  we 
thought  it  desirable  at  this  meetitig  to  fake  power  to  increase 
the  ordinary  shares  to  ;/^75o,ooo  beyond  the  amount  required 
for  the  new  issue  of  600,000,  so  as  to  avoid  the  necessity  of 
calling  you  together  again  in  the  event  that  circumstances 
should  arise  whereby  the  company  either  wished  to  raise  fresh 
money  (though  at  present  we  have  no  reason  to  believe  that  this 
will  be  necessary)  or  desire  to  purchase  property  and  pay  for  it 
in  shares,  or  even  possibly  make  a  distribution  in  respect  of  re. 
serves.  The  third  resolution  deals  with  certain  alterations  in 
our  articles.  As  the  articles  are  at  present  framed,  all  the  new 
ordinary  shares,  unless  the  resolution  otherwise  provides,  have 
to  be  offered  to  all  our  existing  sharAolders,  and  the  board 


think  that  in  future  this  right  should  be  reserved  (unless  a 
meeting  should  otherwise  decide,  or  the  shares  are  required 
for  the  purpose  of  paying  the  purchase  price  of  any  property 
which  the  company  may  acquire)  to  the  holders  of  the  ordinary 
shares  alone,  and  I  have  no  doubt  that  you  will  yourselves 
consider  that  this  is  only  right  and  proper  in  that  the  ptefer- 
ence  shareholders'  rights  are  fixed  to  their  preference  lx)th  in 
capital  and  dividends  over  the  ordinary  shares,  and  it  is  not 
usual  to  give  them  any  other  rights.  The  alteration  that  we 
have  proposed  in  article  44  we  have  found  necessary  because 
with  the  increase  of  the  debenture  issue  and  having  regard  to 
the  banking  convenience  that  we  from  time  to  time  require  in 
the  ordinary  course  of  business  we  should  have  found  ourselves 
exceeding  oui  powers  if  this  alteration  were  not  inserted  in  the 
articles. 

FUTURE  QBNERJIL  HEETINaS. 
The  next  alteration  is  a  matter  of  office  convenience  only.  Our 
existing  articles  compelled  us  to  hold  our  meeting  in  the  month 
of  June  in  every  year,  and  as  we  have  very  intricate  accounts 
with  the  authorities  it  results  (as  you  have  seen  to-day)  in  our 
being  unable,  as  we  have  to  hold  our  meeting  in  June,  to  present 
you  with  final  accounts.  In  future,  should  you  adopt  this  reso- 
lution, the  directors  will  be  able  to  call  the  meetings  (subject 
always  to  the  provisions  of  the  statute)  at  such  time  as  may  be 
most  convenient,  and  we  shall  endeavour  so  to  arrange  matters 
that  we  can  present  you  with  final  accounts  when  we  do  hold 
the  meeting.  The  next  alteration  is  consequential  upon  the  pre- 
ference shares  now  being  all  £1  shares.  Under  the  existing 
articles  every  preference  shareholder  had  one  vote  for  every  £^ 
share,  and  as  the  shares  are  now  being  made  £1  shares  we 
preserve  the  position  by  giving  the  preference  shareholders  one 
vote  for  every  five  preference  shares  held  by  them.  The  next 
alteration  deals  with  the  minimum  number  of  directors.  You 
will  recollect  that  at  the  last  meeting  we  indicated  to  you  that 
we  had  in  mind  the  appointment  of  another  gentleman  to  act 
with  us,  so  soon  as  his  duties  allowed,  but  up  to  the  present 
time  he  has  not  been  able  to  place  his  services  at  our  disposi- 
tion. We  think,  therefore,  it  would  be  well  to  regularise  the 
position  by  providing  that  the  minimum  number  should  be  four 
instead  of  five.  This  does  not  prevent  us,  of  course,  adding  to 
our  number  within  the  power  provided  by  the  articles.  Sub- 
paragraph (f)  of  resolution  3  was  one  of  a  batch  of  alterations 
calculated  to  bring  our  old  articles  of  association  into  the  form 
which  is  more  common  in  these  days,  but  the  directors  do  not 
propose  to  ask  you  to  make  that  alteration.  You  will  accord- 
ingly be  asked  to  vote  on  resolution  No.  3  as  if  sub-paragraph 
(f)  were  eliminated  in  that  resolution.  The  next  alteration  is  a 
necessary  consequential  alteration  by  reason  of  the  increase  of 
the  dividend  on  the  existing  preference  shares  from  6  per  cent, 
to  7  per  cent.,  and  you  will  notice  that  this  is  to  take  effect 
as  from  July  31,  igrS.  Gentlemen,  I  beg  to  move  resolution 
No.  I 

Mr.  Beynon  seconded  the  resolution,  which  was  carried  unani- 
mously. 

On  the  proposition  of  the  Chairman,  seconded  by  Mr.  Beynon, 
the  second  resolution  was  also  unanimously  adopted. 

The  Chairman  :  I  now  move  resolution  No.  3,  excluding  there- 
from sub-paragraph  (f),  and  in  voting  on  this  you  will  be 
voting  for  all  the  alterations  except  sub-paragraph  (f). 

This  resolution  was  also  seconded  by  Mr.  Beynon,  and  unani- 
mously passed. 

■EETHO   OF    PBEFEBEHCE    SHAREHOLDERS. 

A  separate  general  meeting  of  the  holders  of  the  preference 
shares  was  then  held  for  the  purpose  of  considering,  and,  if 
thought  fit,  passing,  with  or  without  amendment,  the  following 
resolution  as  an  extraordinary  resolution  : — 

"That  this  meeting  of  the  holders  of  the  preference  shares 
of  the  Ebbw  Vale  Steel,  Iron,  and  Coal  Co.,  Ltd.,  sanc- 
tions the  creation  and  issue  by  the  company  of  800,000  addi- 
tional preference  shares  of  £1  each,  ranking  in  all  respects 
pari  passu  with  the  80,000  existing  preference  shares  of  the 
company  of  £^  each  (which  shall  be  converted  into  400,000 
shares  of  £1  each),  on  the  terms  that  the  80,000  existing  pre- 
ference shares  and  the  800,000  new  preference  shares  shall 
entitle  the  holders  thereof  to  receive  (and  in  the  case  of  the 
80,000  existing  preference  shares  in  substitution  as  from 
August  I,  1918,  for  the  existing  dividend  at  the  rate  of  £6 
per  cent,  per  annum  payable  thereon)  a  fixed  cumulative  pre- 
ferential dividend  at  the  rate  of  £7  per  cent,  per  annum,  in 
priority  to  the  payment  of  any  dividend  on  the  ordinary 
shares." 

The  Chairman  :  Gentlemen,  the  resolution  we  are  proposing 
at  this  meeting  is  consequential  upon  the  resolutions  already 
pas.sed  by  the  company  at  the  extraordinary  meeting,  and 
merely  provides  for  the  creation  of  the  new  preference  shares 
and  the  increase  of  the  rate  of  dividend.  Under  our  articles, 
as  this  is  a  modification  of  the  rights  of  the  preference  share- 
holders, they  have  to  be  given  the  opportunity  of  expressing 
their  views  at  a  separate  meeting  of  the  holders  of  the  pre- 
ference shares,  and  it  is  in  accordance  with  those  articles  that 
the  meeting  has  been  summoned.  I  beg  to  move  the  resolution. 
Mr.  Beynon  seconded  the  resolution,  which  was  carried  unani- 
mously. 

MEETING   OF  ORDINARY   SHAREHOLDERS. 

A  separate   general   meeting   of   the  holders  of  the  ordinary 
shares  was  also  held   for  the  purpose  of  considering,   and,  if 


6i;2 


XTbe  investors'  IRevtew. 


June  22,   1918. 


thought  fit,  passing,   with  or  without  amendment,   the   follow- 
ing resolution  as  an  extraordinary  resolution  : — 

"  That  this  meeting  of  the  holders  of  the  ordinary  shares  of 
the  Kbbw  Vale  Steel,  Iron,  and  Coal  Co.,  Ltd.,  sanctions  the 
increase,  as  from  the  ist  day  of  August,  1918,  of  the  rate 
of  the  cumulative  preferential  dividend  on  the  80,000  existing 
preference  shares  of  £t,  each  of  the  company  from  £(>  to 
£-j  per  cent,  per  annum." 

The  Chairman  :  Gentlemen,  this  resolution  is  consequential 
upon  the  resolution  passed  at  the  extraordinary  general  meet- 
ing for  increasing  the  dividend  on  the  preference  shares,  but 
it  requires  confirmation  at  a  .separate  meeting  of  the  holders 
of  the  ordinary  shares.  As  I  have  already  explained 'the  matter 
fully  in  my  observations  at  the  last  meeting,  I  do  not  think  it 
is  necessary  for  me  to  add  anything  at  this  meeting.  I  beg 
to  move  the  resolution. 

Mr.  Beynon  .seconded  the  resolution,  which  was  unani- 
mously adopted,  and  a  cordial  vote  of  thanks  to  the  chairman 
concluded  the  proceedings. 

INDIA  GENERAL  NAVIGATION  AND  RAILWAY 

CREATION  OF  A  RESERVE  FOR  FLEET  REPLACE- 
MENT. 

The  annual  ordinary  general  meeting  of  shareholders  of  the 
India  General  Navigation  and  Railway  Co.,  L}d.,  was  held  on 
Wednesday  at  the  offices  of  the  company.  Orient  House,  New 
Broad  Street,  E.C.,  Mr.  A.  Simson  (the  chairman)  presiding. 

The  representative  of  the  Secretaries  (Messrs.  Kilburn, 
Brown  and  Co.)  having  read  the  notice  convening  the  meeting 
and  the  report  of  the  auditors. 

The  Chairman  said  :  Gentlemen, — I  will  ask  you,  as  usual, 
to  allow  me  to  take  the  report  as  read.  You  will  have  observed 
therefrom  and  from  the  audited  accounts  which  accompany  it 
that  the  net  profit  for  the  year  r9i7  amounts  to  jC6^,y6y  2s.  5d., 
against  ^72,685  15s.  in  igi6 — a  difference  of  ^6,918  12s.  7d. 
in  favour  of  the  latter.  With  the  balance  brought  in  we  have 
a  sum  of  ^90,494  9s.  8d.  to  dispose  of,  and  we  trust  you  will 
approve  of  our  recommendations  as  to  its  distribution.  Our 
depleted  fleet  reduces  depreciation  to  ;,f69,684  los.  2d.,  against 
;f77,oi8  in  the  previous  year,  and  the  sum  reserved  for  Eng- 
lish income-tax  is  ;^i5,ooo,  against  ;^i6,8oo,  or  a  saving  of 
;^i,8oo.  Indian  income  and  super-tax,  on  the  other  hand, 
amount  to  Rs.  1,54,150,  compared  with  Rs.  88,499  i°  '916,  and 
besides  improvement  in  the  conditions  attached  to  ordinary 
contributors  to  the  provident  fund  we  have  awarded  an  extra 
well-merited  contribution  thereto  of  ^^5,000  for  the  benefit  of 
our  hard-worked  staff.  The  amount  of  5  per  cent,  debentures 
outstanding  is  slightly  altered  owing  to  the  sale  of  a  further 
amount  of  Rs.  4,000.  In  the  report  attention  has  been  called 
to  a  new  item  appearing  in  the  accounts  entitled  "  Reserve  for 
fleet  replacement."  This  represents  part  of  the  money  received 
in  payment  of  vessels  impressed  and  actually  purchased  by 
Government — namely,  the  difference  between  the  purchase  price 
paid  and  the  depreciated  values  of  the  vessels  in  the  company's 
books.  The  fund  is  set  aside  in  reserve  for  the  increased  cost 
of  acquisition  and  construction  of  new  vessels  to  replace  those 
taken  from  us,  but  according  to  present  indications  it  will  be 
quite  insufficient  to  provide  its  object  fully,  and  when  the  re- 
placements can  be  realised  and  at  what  cost  it  is,  in  present 
circiunstances,  impossible  to  foretell.  In  the  meantime  we  have 
to  struggle  to  render  the  best  service  we  can  with  the  fleet 
which  is  left  to  us.  The  total  number  of  vessels  of  all  classes 
in  commission  is  now  515,  against  547  in  1916,  and  the  loss  is 
a  rather  serious  blow  to  the  efficiency  of  our  service. 

Condition  of  the  Fleet. 

As  regards  the  condition  of  the  fleet,  we  are  doing  our  best 
to  keep  it  up  to  the  usual  standard  of  excellence,  but  this  in 
present  conditions,  of  course,  offers  considerable  difficulty, 
owing  partly  to  the  scarcity  of  materials  and  partly  to  the 
urgent  need  to  keep  the  vessels  running  so  that  they  may  as 
far  as  possible  cope  with  the  freight  offering.  The  company's 
earnings  as  shown  in  the  general  freight  and  charter  accounts 
were  Rs.  24,82,787,  against  Rs.  28,05, r2o  i'l  i9'6,  though  some 
of  the  lines  have  given  increased  gross  earnings.  Jute  carriage 
was  about  equal  in  quantity  to  1916,  but  the  tea  traffic  was  for 
some  time  disorganised  and  held  up  owing  to  lack  of  ocean 
tonnage.  The  Assam  dispatch  service  had  to  be  reduced  from 
a  daily  to  an  alternate  day  service  in  consequence  of  the  im- 
pressment of  steamers  already  referred  to.  Expenses  of  work- 
ing have,  of  course,  risen  very  materially.  In  the  profit  and 
loss  account  the  outstanding  item  of  change  is  the  interest  ac- 
count. The  amount  of  interest  incurred  in  India  is  Rs.  71,223, 
against  Rs.  1,41,757  in  Ihe  previous  year,  and  in  London  there 
is  a  credit  balance  in  the  account  of  ;f  2,556,  as  compared  with 
a  debit  in  1916  of  .1^5,174,  bringing  the  total  difference  in 
favour  of  1917  to  over  ;£i2,ooo.  The  reserve  funds  are  in- 
creased by   ;^io,ooo  to  ^2io,oooj  apart  from  the  fleet  replace- 


ment reserve  of  ;^  142,264.  You  will  notice  an  investment  of 
/■5,ooo,  in  7,500  shares,  in  ?"raser  and  Co.,  Ltd.  This  concern 
is  a  landing  and  shipping  company,  which  it  is  desirable  to 
encourage  and  support  owing  to  our  growing  needs  for  trans- 
shipment and  delivery  service,  so  that  our  larger  vessels  may 
be  set  free  more  rapidly  in  the  Port  of  Calcutta.  I  am  hopeful 
that  we  shall  be  able  to  achieve  fair  results  during  the  current 
year,  though  the  company's  work  is  being  carried  on  in  very 
difficuU  and  strenuous  conditions.  Your  managing  agents  and 
all  the  company's  staff  have  worked  with  diligence  and  devo- 
tion in  the  company's  interests,  and  their  unflagging  efforts 
merit  your  fullest  recognition.  The  fii^t  resolution  which  I 
beg  to  propose  is  : — "  That  the  report  and  accounts,  as  pre- 
sented, for  the  year  ended  December  31,  1917,  be  and  are 
hereby  adopted,  and  that  the  following  dividends  be  declared, 
free  of  income-tax,  to  shareholders  now  standing  on  the 
register — namely,  on  the  preference  or  "  A "  shares  2J  per 
cent.,  making  5  per  cent,  for  the  year,  and  on  the  ordinary  or 
"  B  "  shares  4  per  cent.,  making  8  per  cent,  for  the  year." 

Colonel  John  M.  Denny,  C.B.,  seconded  the  resolution,  which 
was  carried  unanimously. 

The  Chairman  :  The  next  resolution  I  have  to  propose  is  : — 
"  That  Mr.  G.  C.  Kilby  be  and  is  hereby  re-elected  a  director 
of  the  company."  I  do  not  think  that  requires  any  further 
recommendation  from  me. 

Sir  Stephen  Finney,  C.I.E.,  seconded  the  motion,  which  was 
unanimously  agreed  to. 

Appkeciation  of  Directors'  Services. 

Mr.  W.  H.  Cheetham  :  I  am  sure  all  shareholders  must  be 
well  satisfied  with  the  results  achieved  in  these  exceptionally 
difficult  times,  feel  grateful  to  the  directors  for  their  inde- 
fatigable labours,  and  appreciate  the  responsibilities  which  rest 
upon  them.  It  is  obvious  that  the  development  of  the  company 
since  it  was  established  in  this  country  some  18  years  ago  has 
greatly  increased  both  those  labours  and  those  responsibilities, 
while  a  further  and  exceptionally  severe  strain  has  been  im- 
posed by  the  war.  I  have,  therefore,  much  pleasure  in  pro- 
posing a  vote  of  thanks  to  the  board,  and  in  confirmation  of 
our  gratitude  to  couple  with  it  a  resolution  that  their  fees, 
which  were  fixed  in  the  articles  and  have  not  been  altered, 
shall  be  brought  into  line  with  the  dividends  we  receive  by 
paying  them  free  of  income-tax.  I  venture  to  hope  that  the 
wise  and  conservative  policy  of  the  board  has  established  the  8 
per  cent,  dividend  on  the  ordinary  shares  on  a  stable  basis, 
and  I  would  remark  that  the  tax-free  dividends  of  5  per  cent, 
and  8  per  cent,  on  the  preference  and  ordinary  shares  are 
equivalent  at  the  present  time  to  about  7  per  cent,  and  loj  per 
cent,  respectively.  To  give  effect  to  my  suggestion,  if  this 
should,  as  I  hope  and  expect,  meet  with  the  approval  of  this 
meeting,  I  beg  to  propose  the  following  resolution  : — "  That 
the  cordial  thanks  of  this  meeting  be  given  to  the  board  of 
directors  for  their  able  conduct  of  the  company's  affairs,  and 
that  their  fees  be  henceforth  and  with  effect  from  January  i, 
1917,  be  paid  free  of  income-tax." 

Mr.  P.  E.  Gourju  seconded  the  motion,  which  was  unani- 
mously adopted. 

The  Chairman  :  I  can  only  say,  on  behalf  of  my  colleagues 
and  myself,  that  we  are  very  much  obliged  to  you  for  this 
mark  of  confidence,  and  I  personally  thank  the  mover  and 
seconder  of  the  resolution.  As  you  are  aware,  we  have  always 
striven  to  do  the  best  we  possibly  can  for  the  company,  and  I 
think  you  may  rely  that  we  shall  continue  to  do  so,  notwith- 
standing that  we  are  receiving  better  remuneration  than  before. 

On  the  motion  of  Mr.  Cheetham,  seconded  by  Sir  George  S. 
Forbes,  K.C.S.I.,  the  auditors  were  reappointed,  and  the  pro- 
ceedings then  terminated. 


FORESTAL   LAND,  TIMBER.  AND  RAILWAYS- 

,     FINANCIAL    POSITION    AND    OUTLOOK. 

The  ordinary  general  meeting  of  the  Forestal  Land,  Timber, 
and  Railways  Co.,  Ltd.,  was  held  on  Thursday  at  River  Plate 
House,  Finsbury  Circus,  E.C.,  Trie  Hon.  Sir  Arthur  Lawley, 
G. C.S.I,  (the  chairman),  presiding. 

Mr.  O.  J.  Buxton  (secretary  and  London  manager)  read  the 
notice  and  the  auditors'  report. 

The  Chairman,  in  moving  the  adoption  of  the  report,  first 
dealt  with  the  figures  appearing  in  the  balance-sheet,  and 
pointed  out  that  the  reserve  funds  of  the  company  n<rv 
amounted  to  a  total  of  ;^i,372,924,  or  44  per  cent,  of  the  paid- 
up  share  capital.  Freehold  lands,  plant,  &c.,  stood  at 
;,<J'4,454,904,  or  an  increase  of  ^^18,090  over  last  year,  due  to 
sundry  additions  to  buildings,  plant,  S:c.  Holdings  in  asso- 
ciated undertakings  and  other  investments  stood  at  £S7''4^'- 
They  were  worth  a  great  deal  more.  The  livestock  valuation  of 
^■454, 1 52  was  most  conservative  for  a  herd  of  approximately 
105,000  animals,  of  which  many  were  of  a  remarkably  high 
quality.  The  company's  resources  in  War  Loans,  Treasury 
bills,  and  cash  totalled  ;^i,27i,5o6.  The  financial  position  dis- 
closed by  the  balance-sheet  was   never  stronger.     The  trading 


June  22,  1918. 


XTbe  Jnveetora'  "Review. 


613 


profit  amounted  to  ;f  1,148, 509.  Deducting  London  charges, 
interest  on  debentures  and  depreciation,  there  was  left  a 
balance  of  ;^822,395,  or  27  per  cent,  on  the  issued  share  capital, 
before  providing  for  excess  profits  duty.  The  directors  pro- 
posed to  allocate  to  reserve  for  excess  profits  duty,  income-tax, 
&c.,  ^200,000,  to  special  reserve  ;^i5o,ooo,  to  the  preference 
shares  jf  187,662,  to  the  ordinary  shares  ;i^284,733,  and  to  pay 
a  final  dividend  of  6  per  cent,  on  the  preference  shares,  mak- 
ing a  12  per  cent,  dividend  for  the  year,  and  a  final  dividend 
of  12  per  cent,  on  the  ordinary  shares,  making  18  per  cent,  for 
the  year.  They  carried  forward  ^48,221  to  the  credit  of  the 
preference  shareholders  and  ^^144,642  to  the  credit  of  the  ordi- 
nary shareholders.  The  results  of  the  year  were  eminently 
satisfactory  considering  the  difficulties  by  which  they  had  been 
confronted. 

With  regard  to  the  present  and  the  future,  as  far  as  the 
timber  section  was  concerned,  not  only  could  no  improvement 
in  the  export  of  quebracho  wood  be  foreseen,  but  further  cur- 
tailment must  be  expected  until  the  freight  situation  materially 
improved.  The  shortage  of  tonnage  both  inwards  and  out- 
wards had,  however,  created  a  shortage  of  coal  in  the  Argen- 
tine, and  consequently  an  increasing  demand  for  firewood. 
They  had  very  considerably  developed  this  branch  of  their  in- 
dustry. The  pooling  arrangements  had  not  been  renewed  for 
1918.  Prices  had  fallen  further,  but  they  had  sold  more  ex- 
tract for  1918  than  for  any  year  in  the  history  of  the  company, 
and  mostly  direct  to  the  Allied  Governments.  The  element  of 
uncertainty  was  reduced  to  the  question  of  how  much  of  the  ex- 
tract sold  would  be  shipped.  The  directors  hoped  that  in  the 
course  of  the  next  few  years  they  would  be  able  to  place  the 
cattle  business  on  a  sound  footing  and  derive  therefrom  suffi- 
cient profits  to  go  a  long  way  towards  paying  the  service  of 
their  debentures.  Mr.  Baldwin,  the  managing  director,  who 
had  recently  come  from  the  States,  after  a  visit  to  Buenos 
Ayres  on  behalf  of  the  company,  thought  that  the  requirements 
of  the  State  for  1918  and  1919  would  probably  be  very  heavy, 
and  that  it  was  of  vital  importance  for  the  purposes  of  the 
United  States  Army  equipment  that  the  extract  should  be  im- 
ported in  large  quantities.  In  conclusion,  he  referred,  amid 
applause,  to  the  completion  of  the  leorganisation  of  the  local 
staff  and  the  entire  elimination  of  enemy  employees  and 
labourers.     He  moved  the  adoption  of  the  report. 

Baron  Emile  D'Erlanger,  who  seconded  the  motion,  said 
some  disappointment  had  been  expressed  in  certain  circles  in 
regard  to  the  dividend,  but  he  would  ^sk  the  shareholders 
whether  this  was  entirely  justified.  He  reminded  them  that 
last  year's  distribution  was  divided  into  dividend  and  bonus, 
which,  to  his  mind,  was  a  clear  indication  that  the  results  of 
that  year  should  have  been  regarded  as  altogether  exceptional. 
At  that  time  he  also  stated  that  whilst  they  would  endeavour  to 
maintain,  and  even  surpass,  those  results,  it  could  not  be  ex- 
pected that  they  could  repeat  the  achievements  of  that  year  in 
consecutive  periods.  He  would  ask  them  to  consider  the  divi- 
dend of  12  per  cent,  for  the  preference  shares  and  18  per  cent, 
for  the  ordinary  shares  as  the  normal  dividend,  not  to  be  ex- 
ceeded, at  least  during  the  continuance  of  the  war.  On  the 
other  hand,  he  thought  this  normal  dividend  of  12  and  18  per 
cent,  was  as  assured  as  anything,  humanly  speaking,  could  be 
in  such  times  as  those  through  which  we  were  now  traversing, 
and  he  went  on  to  give  detailed  reasons  for  this  belief. 
After  a  brief  discussion  the  report  was  adopted. 


CALCUTTA  TRAMWAYS. 

The  ordinary  general  meeting  of  the  Calcutta  Tramways  Co., 
Ltd.,  was  held,  on  Monday,  at  i.  Queen  Victoria  Street,  E.C., 
Sir  Henry  Kimber,  Bart,  (the  chairman),  presiding. 

The  representative  of  the  secretaries  (Messrs.  Hays,  Akers,  and 
Hays)  read  the  notice  and  the  auditors'  report. 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  said  that  the  gross  traffic  and  sundry  receipts 
amounted  to  ^^242,820.  The  working  expenses  were  ;^i  18,739, 
leaving  a  balance  of  ;^i24,o8o.  After  adding  interest  on  invest- 
ments and  deposits,  less  interest  on  loans,  income-tax,  and  loss 
on  sale  of  investments,  adding  the  balance  forward  from  the 
1916  accounts,  and  deducting  the  debenture  and  preference  in- 
terest and  the  interim  dividend  paid,  there  remained  an  avail- 
able balance  of  ..^72,575.  During  the  year  they  had  spent  on 
capital  account  ;^504,  which  represented  the  cost  of  a  new  motor 
lorry.  Then  they  had  to  the  credit  of  capital  account  ^^8,550, 
•which  was  made  up  of  the  original  cost  of  the  Diesel  set  sold 
during  the  year  as  being  of  no  further  use  to  them,  owing  to 
the  changes  in  their  Nonapookur  plant,  and  the  cost  of  rails 
taken  up  in  Gailiff  Street  utilised  for  renewal  work,  owing  to 
the  impossibility  of  obtaining  fresh  supplies,  the  single  track 
remaining  being  sufficient  for  their  purpose  as  a  depot  con- 
nection only.  The  revenue  account  showed  a  falling  off  of 
°n.'y  ^^3'  in  the  traffic  receipts,  due  to  the  reduction  in  the 
mileage  which  they  were  called  upon  to  make  before  they  could 
obtain   Government  authority   for  procuring   supplies  necrssary 


for  carrying  on  the  system.  With  regard  to  the' Indian  working 
expenses,  the  power  expemses  were  about  the  same  as  in  the 
prev^pus  year.  The  traffic  expenses  showed  a  small  increase, 
due  to  extra  superintendence  and  the  enhanced  cost  of  stores. 
Maintenance  and  repairs  showed  a  decrease,  due  to  the  reduc- 
tion in  mileage  and  the  shortage  of  supplies.  General  expenses 
•  showed  an  increase,  due  to  additional  rent  of  new  office  pre- 
mises in  Calcutta,  and  the  extra  cost  of  printing,  stationery,  &c. 
The  Indian  income-tax  had  not  been  included  tJiis  year  in  these 
expenses,  but  was  shown  with  English  income-tax  paid  in  the 
appropriation  of  profits.  The  London  expenses  were  about 
the  same  as  in  the  previous  year.  The  loss  on  the  sale  of  in- 
vestments of  ^3,187  was  due  to  the  sale  of  the  company's  holding 
of  India  2%  per  cent,  stock,  and  investing  the  proceeds  in  the 
purchase  of  Great  Indian  Peninsular  Annuities,  Class  "  B." 
They  did  this  for  the  reason  that  while  the  Indian  2%  per 
cent,  stock  was  redeemable  only  at  the  Government  option  the 
Great  Indian  Peninsular  Annuities,  which  cost  them  only  £it 
per  £1  of  annuity,  had  the  benefit  of  a  sinking  fund  calculated 
on  the  basis  of  2J  per  cent,  to  pay  them  off  at  about  ;^26  2s.  per 
£1,  so  that  they  were  sure  ultimately  of  making  good  the  de- 
preciation on  the  original  holding.  The  directors  proposed  to 
deal  with  the  net  available  balance  by  the  payment  of  a  final 
dividend  of  5s.  6d.  per  share,  making  8  per  cent,  for  the  year, 
free  of  income-tax,  equivalent  to  a  little  more  than  <)%  per  cent., 
less  tax,  paid  last  year,  the  transfer  of  ^25,000  to  the  reserve  for 
depreciation,  &c.,  increasing  the  total  of  this  account  to 
/'ioo,357,  the  contribution  oT  ;^  1,298  to  the  staff  provident  fund, 
and  the  carrying  forward  of  the  balance  of  ^8,434,  subject  to 
excess  profits  duty  and  Indian  super-tax  not  yet  ascertained. 
With  regard  to  the  prospects  for  the  current  year,  although  they 
were  not  allowed  to  extend  the  mileage  run  the  traffic  receipts 
had  substantially  improved,  the  aggregate  increase  to  date 
amounting  to  upwards  of  Rs.  115,000.  They  must,  however,  be 
prepared  for  increased  running  expenses  owing  to  the  continual 
rise  in  the  cost  of  supplies  and  the  difficulty  of  obtaining  them. 
Mr.  John  G.  B.  Stone  seconded  the  resolution,  which  was 
carried  unanimously,  and  the  dividend  recommended  was  de- 
clared, payable  on  the  21st  instant. 


J.    LYONS    AND    CO. 

The  ^th  ordinary  general  meeting  of  the  shareholders  of 
J.  Lyons  and  Co.,  Ltd.,  was  held  on  Thursday  at  the  Troca- 
dero  Restaurant,  Shaftesbury  Avenue,  W.,  Mr.  iMontague 
Gluckstein   (the  chairman)  presiding. 

The  Secretary  (Mr.  Geo.  W.  Booth)  having  read  the  notice 
convening  the  meeting  and  the  report  of  the  auditors. 

The  Chairman  said  :  I  am  confident  that  you  will  regard  the 
showing  of   the   grofit   and   loss   account  and    balance-sheet  as 
being   eminently  satisfactory,  having  regard   to   the  enormous 
difficulties  which  have  beset  the  path  of  the  directors  through- 
out the  whole  of  this  trying  financial  year.     It  will  be  recog- 
nised that  food  production  and  its  distribution,  combined  with 
the  minutest  economy  in  its  preparation,  has  been  and  remains 
one   of   the   most   vital  matters   in   this   country    in  connection 
with  the  war.     We  claim  to  have  given  much  help,  and  to  be 
still  rendering  most  valuable  assistance  to  those  ends.     Every 
branch  of  our  factories  and  stores   is  watched  microscopically 
with  the  view  to  prevent  and  check  waste,  while  much  thought 
and  effort  is  given  to  obtaining  the  last  fraction  of  production 
from  the  raw  products.     The  profit  figure  is  ;^3i6,272,  being 
;^47,8oo  more  than  last  year,  and  to  this  must  be  added  the  pre- 
vious   carry    over.     After    setting    aside    ;ifi2o,ooo,    which    is 
^^15,000  more,  for  depreciation  occasioned  by  increased  cost  of 
renewals  and  replacements  of  plant,  and  paying  the  same  final 
dividend  as  last  year — you  will  remember  we  had  then  to  draw 
on  our  carry  over  to  the  extent  of  ;f7,ooo  to  pay  that  dividend 
— we  have  a  disposable  balance  of  ;^46,8o3.     From  this  we  have 
transferred    ^^40,000    to    reserve,    making    a    round    figure    of 
;f6oo,ooo,    and    there    remains    ^6,803    to   carry   over    to    next 
account.     The  general  rise  in  the  price  of  foodstuffs  since  the 
outbreak   of   war   is   about    130   per   cent. — that    is,   comparing 
present  prices  with   pre-war  prices — but  during  the  last  year, 
thanks  to  the  Government  action  in  fixing  prices  and  in  ration- 
ing the  public,  the  advance  over  the  whole  has  been  very  small, 
although  there  has  been  considerable  fluctuation  in  individual 
items.     You  will  bear  in  mind  I  am  only  speaking  of  averages. 
For   instance,   our   books  show  that   we  are  paying  for  sugar 
212^   per  cent,  more   than   we  were   paying   in    1914,    and    for 
meat  173.6  per  cent.   more.     But   the  effect  on   the  company's 
accounts  will  perhaps  be  best  illustrated  if  I  tell  you  that  our 
purchases    of    milk    and    eggs    alone    during    last    year    cost 
jf  100,000  more  than  a  similar  quantity  would  have  cost  in  1914. 
In  spite  of  the  general  effect  of  these  prices  upon  the  consumer, 
I  am  pleased  to  say  that  we  have  succeeded  in  retaining  our 
popularity  with  the  public,  hence  a  constantly  increasing  turn- 
over, which,  while  it  does  not  enable  us  to  earn  pre-war  profits, 
has  resulted  in  an  improvement  on  last  year's  working.     I  have 
said  we  retain  our  popularity  with  the  public,  and  I  venture  to 
think,  you  will  agree,  deservedly  so  when  I  tell  you  that,  in 
spite  of  all  the   formidable  obstacles   in   the  way  of   the  food 
purveyor,  we  succeed  in  supplying  in  one  department  alone  tens 
of  millions  of  meals  per  annum  at  an  average  cost  to  the  con- 
sumer of  under  9d.   each.     Needless  to  say,  this  has  not  been 
done  without  diminution   in  quantity,   although   reduction  has 
been  mitigated  by  the  substitution  of  different  classes  of  food- 
stuffs,  and   the  customer   still  has  \\^^  advantage  of  getting  a 


6u 


Zhe  Jnvestots"  IRex^iew^ 


JtJNE  22,    1918. 


reasonable  meal,  or,  in  other  words,  good  value  for  his  money, 
under  present  conditions.  You  will  have  learned  from  the 
report  in  your  hands  that  we  have  entered  into  two  contracts — 
one  for  acquiring  a  controlling  interest  in  the  world-famous  tea 
firm  of  W.  K.  and  J.  H.  Horniman,  Ltd.,  London,  and  the 
other  for  the  purchase  of  the  tea  business  of  Dlack  and  Green, 
Ltd.,  of  Manchester.  Needless  to  say,  the  terms  are  such  as  to 
satisfy  your  board  that  each  is  a  sound  commercial  deal,  and 
this  while  we  have  not  been  ungenerous  to  the  vendors.  We 
look  for  our  advantages  in  the  reduction  of  expenses  in  the 
blending,  packing,  and  distribution  of  the  commodities  handled 
by  those  companies ;  and  after  the  war  we  should  also  save  sub- 
stantially on  the  buying  side.  Our  report  has  informed  you  of 
our  havinjj;  secured  an  important  property  adjoining  the  Troca- 
deio  Restaurant  and  the  Coventry  Street  Corner  House.  It  has 
two  frontages — namely,  one  in  Shaftesbury  Avenue,  measuring 
some  no  ft.,  and  the  other  in  Coventry  Street  of  some  120  ft. 
The  property  is  known  as  the  Arundell  estate.  Its  entire  area 
is  some  35,000  sq.  ft.  Us  commercial  position  is  unique,  and 
especially  so  for  us,  inasmuch  as  it  enables  us  to  make  the  very 
necessary  expansions  to  keep  pace  with  the  public  demand  for 
ever  more  accommodation  to  each  of  those  establishments — a 
need  which  we  experienced  for  years  before  the  outbreak  of 
war,  and  which  has  not  been  diminished  since.  Of  course,  we 
cannot  think  of  doing  any  structural  work  on  the  site  until 
after  the  war,  having  regard  to  the  embargo  on  building  opera- 
tions. Meanwhile  the  income  from  the  property  forms  a  sub- 
stantial set-off  to  the  outgoings. 

Mr.  John  Balfour  seconded  the  resolution  for  the  adoption 
of   the   report,  which   was  carried   unanimously. 

TRUST  AND  LOAN  OF  CANADA. 

The  annual  general  meeting  of  the  Trust  and  Loan  Company 
of  Canada  was  held  on  Thursday,  at  the  offices,  7,  Great  Win- 
chester Street,  E.C.,  Lieut. -Colonel  the  Hon.  Sidney  Peel, 
D.S.O.  (the  president),  in  the  chair. 

The  Secretary  (Mr.  Roger  Kingdon)  read  the  notice  and  the 
auditors'  report. 

The  President  first  compared  the  revenue  account  with  that 
of  last  year,    and   stated    that   the   profits   for   the   year    ended 
March    31    last     appeared    to    amount     to    ^126,802,     against 
^^124,293.     As  a  matter  of  fact,   the  profits  were   realty   rather 
less  than  those  of  last  year  owing  to  the  absence  of  a  charge  for 
interest  on  the  special  reserve  fund.     The  revenue  from  Canada 
had    decreased    by  ^15,000   from   ^^240,000  to   ^^225,000.     This 
was   accounted    for  by  the  decrease   in  their  Canadian   invest- 
ments.    On  the  other   hand,   the   revenue  from   investments   on 
this  side — those  classed  in  the  reserve  fund  and  those  classed  in 
temporary  investments — had  increased  from  ^^34,000  to  ;f46,ooo. 
Expenses  had  risen  by  about  ;f  1,700.     There  was  a  decrease  of 
about  ^2,200  in  the  amount  of  income-tax,  which  fell  into  this 
year's   accounts.       They  had   subscribed   ;^2oo   to  the   Halifax 
Disaster  Relief  Fund.     Turning  to  the  balance-sheet,  the  invest- 
ments in  Canada  had   decreased   by  about  ^£'160,000.     This  in- 
cluded an  increase  in  the  properties  bought  in  after  foreclosure 
of    about    ^26,000.     The    decrease    in   the    investments   was    no 
doubt  due  to  the  great  prosperity  of  the  agricultural  interest  in 
Canada  during  the  past  year.     Farmers  had,  as  a  whole,  done 
very  well,  and  were  inclined  to  pay  off  their  loans,  and  this 
was  not  at  all  a  bad  sign  of  the  general  prosperity  prevailing 
in    the   couiitry.     The    amount    of    interest    overdue    had    de- 
creased from  $153,000  to  $101,000.     It  might  at  first  sight  seem 
curious  that  the  amount  of   arrears   of  interest  had   decreased 
by  one-third,   while  the   amount  of  property   under   foreclosure 
had  increased.     The  explanation  of  this  was  that  while   there 
had  been  widespread  agricultural  prosperity,  at  the  same  time 
the   war   had    produced   in    Canada,    as    elsewhere,    unpleasant 
effects   for   individuals,    and    while   the  majority    found    them- 
selves in  a  more  prosperous  condition,  there  were  a  certain  num- 
ber of   people  who   were   hard   hit   by   war   conditions.        The 
directors  had  had  a  careful  examination  made  of  these  properties, 
and  they  did  not  anticipate  any  serious  losses  upon  them.     At 
the  same  time  they  had  judged  it  prudent  to  put  aside  ;ifs,ooo 
ih  a  contingencies  account  to  guard  against  any  eventual  loss, 
"fhe  tendency  to  pay  off  loans  was  at  present  hardly  more  than 
a  tendency,  and  was  dee  to  the  rather  curious  conditions  which 
at    present    prevailed.     He  believed    that    after    the    war    there 
would  be  a  great  demand  for  capital  for  all  sorts  of  purposes 
of  reconstruction.     He  thought  they  should  regard  with  equani- 
mity   a  certain    temporary    reduction    in    their    investments   in 
Canada,   and  avoid   any  attempt   to   force  money  out   at   rates 
which   after  a   time  might  prove   to   be   unremunerative.     The 
principal  feature  in  the  balance-sheet  this  year  was  the  amal- 
gamation of  the  statutory  reserve  fund  and  the  special  reserve 
fund  under  one  head.     They  had  placed  /2<5,4i6  to  reserve  this 
year,    and  that   brought   the  total   up    to   the   round   figure  of 
/6oo,ooo.    The  directors  had  already  declared  an  interim  divi- 
dend for  the  half-year  at  10  per  cent.,  and  now  recommended  a 
final  dividend   of  15   per  cent.,   making    12^   per  cent,   for  the 
year,  as  against  lo  per  Cent,  last  year.     He  thought  the  share- 
holders might  fairly   congratulate  themselves  on    the   patience 
and  care  which  they  had  shown  in  past  years  to  build  up  the 
reserve  fund,   and  they  were  fully  entitled  by  the  condition  of 
',he   business — especially   now   the'  income-tax   was   so  high— to 
receive  the   larger  dividend   which   thev   had  earned.     So   far 
as   he   could    see,    there   was    no   reason  why   the   shareholders 
should  not  continue  to  receive  dividends  at  the  rate  of  the  last 


half-year.     He  concluded  by  moving  the  adoption  of  the  report 
and  accounts. 

Mr.   Fred  W.   Stobart,   O.H.E.,   seconded  the  motion,  which 
wa.s  carried  nnajiimously. 


WNt.    CORY    AND    SON. 

The  22nd  annual  ordinary  general  meeting  of  William  Cory 
and  Son,  Limited,  was  held  on  Tuesday,  at  the  Cannon  Street 
Hotel,  E.G.,  Sir  A.  C.  Cory-Wright,  Bart,  (chairman  of  the 
company),  presiding. 

The  Secretary  (Mr.  R.  J.  Speller)  having  read  the  notice 
convening  the  meeting  and  the  report  of  the  auditors, 

The  Chairman  said  that  the  nett  profits  for  the  year  ended 
March  31  last  amounted  to  ;^49Z,733,  and  with  the  balance  oi 
;fi3o,897  brought  forward  fiom  last  year's  account  made  a 
total  of  ^£623,621.  This  result  had  beeu  arrived  at  after  charg- 
ing all  expenses,  cost  of  maintenance,  and  making  ample  pro- 
vision for  depreciation,  and  after  providing  for  the  excess 
profits  tax.  Although  the  directors  had  achieved  so  satisfac- 
tory a  result,  their  work  had  been  attended  by  many  diffi- 
culties and  anxieties.  The  regulations  imposed  on  the  trade 
by  the  Coal  Conti  oiler  had  considerably  added  to  their  diffi- 
culties. The  nett  profits  of  Rickett  Cockerell  showed  a  small 
decrease  from  those  of  last  year,  due  partly  to  the  increased 
rate  of  the  excess  profits  tax,  but  more  particularly  to  the 
falling  off  of  tonnage  caused  by  the  regulations  limiting  the 
supply  of  coal  to  householders  in  the  London  district.  The 
dividend  declared  was  at  the  same  rate  as  last  year ;  ;f  10,000 
had  been  added  to  the  reserve  fund,  bringing  it  to  jQyo,ooo, 
and  a  sum  of  ^^5,000  had  been  placed  to  a  staff  pension  fund. 
In  the  circular  issued  to  the  shareholders  last  year  it  was 
stated  that  an  important  group  of  the  company's  customers 
desired  to  associate  themselves  with  the  company  by  acquiring 
a  substantial  interest  in  the  ordinary  shares.  An  offer  was 
made  and  submitted  to  the  shareholders  to  purchase  up  to  half 
their  holding  at  a  price  which  was  at  that  time  io  excess  of 
the  market  value.  This  offer  was  accepted  by  the  holders  of  a 
large  number  of  shares,  and  the  directors  had  made  up  the 
number  required  to  carry  the  scheme  through.  This  co  ordina- 
tion of  interests  had  already  proved  of  great  value  to  all  con- 
cerned. 

In  order  to  avail  themselves  of  the  full  benefit  of  this  co- 
operation  and  to  further  develop  the  company's  foreign  trade, 
the  directors  had  purchased  the  important  foreign  coaling  busi- 
ness of  Mann,  George  and  Co.,  whose  operations  extended  to 
all  the  principal  coaling  stations  throughout  the  world.  In 
addition,  and  with  the  object  61  extending  the  company's  trade 
in  the  United  Kingdom,  particularly  in  Liverpool  and  South- 
ampton, the  directors  had  since  the  end  of  the  financial  year 
acquired  the  old-established  firm  of  R.  and  J.  H.  Rea,  who  for 
half  a  century  had  been  engaged  in  a  profitable  trade  chi^^y  in 
these  ports.  In  addition  to  the  money  that  had  had  to  be 
found  for  the  purchase  of  the  two  businesses  mentioned,  a  c<»- 
siderable  sum  would  be  requirecl  to  enable  them  to  build  new 
steamers  and  fresh  plant.  They  had  a  large  depreciation  and 
other  reserves  to  draw  upon,  but  the  business  was  developing 
at  such  a  rapid  pace  that  the  directors  thought  it  advisable  to 
take  this  opportunity  to  ask  the  shareholders  to  sanction  an 
increase  of  the  nominal  ordinary  .share  capital  of  the  company 
by  the  addition  of  2,000,000  shares.  The  directors  did  not 
contemplate  making  an  immediate  issue  of  shares,  but  the 
shareholders  might  rest  assured  that  they  would  be  given  the 
first  opportunity  of  subscribing  when  any  fresh  issue  was  made. 
It  was  extremely  difficult  in  these  times  to  make  any  reliable 
forecast  as  to  the  immediate  future,  but  it  was  probable  that 
there  would  be  a  decrease  in  the  profits  for  the  coming  year. 
The  company,  however,  was  in  a  strong  financial  position,  and 
on  the  restoration  of  peace  should  show  steady  and  material 
progress.  The  Chairman  concluded  by  moving  the  adoption 
of  the  report  and  accounts. 

Sir  John  Duthie  seconded  the  motion,  which  was  carried 
unanimously. 

An  extraordinary  general  meeting  followed,  at  which  the 
proposed  increase  of  capital  was  approved. 


CHANNEL  TUNNEL. 


An  ordinary  general  meeting  of  the  Channel  Tunnel  Co., 
Ltd.,  was  held  on  Monday  at  the  Cannon  Street  Hotel,  Baron 
Emile  B.  d'Brlanger  presiding. 

The  Secretary,  Mr.  H.  D.  Heckels,  having  read  the  auditors' 
report. 

The  Chairman  .said  :  Ladies  and  Gentlemen, — The  charac- 
teristics of  a.  nation  are  the  sum  total  of  the  idiosyncrasies  of 
its  citizens.  The  bull-dog  tenacity  of  the  British  nation  pulled 
it  through  the  17  years'  struggle  of  the  last  century,  and  carried 
it  to  ultimate  victory.  Let  us  be  hopeful  and  confident  that, 
fighting  to-day  side  by  side  with  the  heroic  French  nation,  our 
fundamental  quality  will  achieve  the  same  result  and  in  a  lesser 
time.  (Hear,  hear.)  The  steadfastness  of  purpose  of  the  British 
citizen  is  displayed  in  civil  life  as  well  as  in  the  pursuits  of 
war,  and  the  victories  of  peace  are  achieved  by  the  same  un- 
wavering purpose  of  mind.  No  more  striking  example  of 
British  bull-dog  tenacity  in  civil  life  has  been  given  than  by 
that  small  group  of  men  who,  for  some  50  years,  have  made  the 
construction   of  the  Channel  Tunnel  their  battle-cry,   and   who 


June.  2:2,  1918. 


Xtbe  Jnvestots'  IReview. 


615 


have  succeeded  iu  enlisting  the  majority  o£  the  nation  and  the 
very  elite  of  its  thinkers  under  their  banner.  This  is  no  time 
for  discouragement;  we  must  not  swerve  from  our  set  purpose. 
Peace  will  rise  upon  this  world  again,  and  with  it  the  daj-  of 
the  construction  of  the  Channel  Tunnel  will  dawn.  I  have 
much  pleasure  in  formally  moving  the  adoption  of  the  report 
and  accounts. 

Mr.  George  Howard  seconded  the  motion,  which  was  carried 
unauimousl}',  and  the  retiring  director  (Mr.  G.  Howard)  was 
re-elected. 

Mr.  Ktherington  propased  that  the  sum  of  200  guineas  be 
voted  to  the  directors  as  their  remuneration  for  the  year  1917. 
He  said  he  was  sure  that  in  connection  with  this  great- under- 
taking, which  ought  to  have  been  carried  out  15  or  20  years 
ago,  there  had  been  no  harder  work  than  was  now  coming  before 
the  oompan}-,  and  it  needed  an  able  and  competent  board  of 
directors,  such  as  they  had  in  the  present  board — who  required 
all  the  support  and  enouragement  the  shareholders  could  give 
them — to  carry  out  this  important  project  in  a  most  substantial 
and  efficient  manner  for  the  benefit  of  the  French  people  and 
ourselves  in  this  country.     (Hear,   hear.) 

The  proposition  was  seconded  by  Mr.  C.  D.  Davis  and 
unanimously  agreed  to,  and  Messrs.  Broads,  Paterson  and  Co. 
were  reappointed  auditors. 

Mr.  VValford  proposed  a  vote  of  thanks  to  the  chairman  and 
directors,  to  whom,  he  said,  the  shareholders  were  very  much 
indebted  for  still  keeping  the  Channel  Tunnel  flag  fiying  before 
the  British  public,  and  showing  what  a  fine  thing  the  tunnel 
would  be  for  this  country  when  once  it   was  constructed. 

The  vote  was  seconded  by  Mr.  Igglesden,  and  unanimously 
accorded. 

The  Chairman  said  that  the  directors  deeply  appreciated  this 
kind  expression  on  the  part  of  the  meeting.  He  wished  to  add 
that  when  he  had  spoken  of  the  "small  group  of  men"  who 
had  kept  the  flag  flying  he  did  not  want  to  take  the  credit 
for  this  to  the  board  ;  it  was  the  shareholders  who  had  supported 
them  throughout  this  long  struggle,  and  who  were  ultimately 
going  to  reap  the  benefit  of  that  struggle,  whom  he  congratu- 
lated upon  their  constancy  and  patience. 


A  debate  on  national  expenditure  began  in  the  Commons  on 
Wednesday,  but  we  can  say  nothing  about  it  this  week. 

Samples  of  corundum  and  muscovite  mica,  from  South 
-Africa,  have  been  forwarded  to  London  by  the  Department  of 
Industries,  in  connection  with  the  demand  which  at  present 
exists  in  the  United  Kingdom  for  these  materials. 

A  Bill  has  been  tabled  in  the  French  Chamber  proposing  the 
abrogation  of  the  luxury  tax  and  the  substitution  of  a  2  per 
cent,  tax  on  the  gross  receipts  of  all  tradesmen  and  manufac- 
turers without  exception.  In  the  preamble  the  authors  of  the 
Bill  calculate  that  this  tax  will  bring  the  Exchequer  from 
;f  160,000,000  to  ;f20o, 000,000   annually. 

News  through  Sweden  as  to  affairs  in  Siberia  speak  of  a 
counter-revolution,  by  which  the  Bolshevist  Government  in 
Western  Siberia  has  been  overthrown.  Aided  by  Czecho-Slav 
troops,  Tomsk  has  been  taken,  and  at  Omsk,  Ekaterinburg,  and 
Ufa  fighting  has  been  going  on  with  the  Soviet  troops.  The 
commanders  of  these  troops,  Colonels  Ivanoff  and  Lashovitch, 
have  telegraphed  to  Lenin  that  Soviet  rule  in  the  whole  of 
Siberia  is  threatened,  and  that  the  Siberian  Duma  has  assumed 
the  government,  and  is  preparing  to  summon  a  Constituent 
Assembly  to  settle  its  form.  F'urther,  that  the  Duma  offers  to 
supply  the  rest  of  Russia  with  bread  on  condition  that  the 
Soviet  commissaries  engage  not  to  take  further  military 
measures  against  Siberia.  The  fanatic  Lenin  has  answered 
according  to  his  kind.  The  Government  commissaries  decline 
to  enter  into  negotiations  with  Siberian  rebels,  he  says,  and 
announces  that  orders  have  already  been  given  for  the  mobilisa- 
tion of  the  classes  for  five  years  from  the  Volga,  Ural,  and 
Siberian  districts.  A  corps  of  engineers  and  artillery  are  ready 
to  be  dispatched  to  Siberia.  The  orders  may  be  given,  but 
will  they  be  obeyed  ?  Siberia  holds  the  grain.  The  reign  of 
the  Lenin-Trotsky  imposture  seems  to  be  drawing  towards  its 
iriexorable  close. 


NOTICE. 


THE  COMMERCIAL  BANK  OF  LONDON.  LTD. 

Authorised  Capital £1,000,000 

Issued  and  Paid-up  Capital...      £500,000 

CURRENT    ACCOUNTS     opened    and    every    description     of 

Banking  Business  transacted. 
Bills  discounted  and  advances  made  to  Customers  on  approved 

security. 
SPECIAL    FACILITIES     GRANTED     TO     COMMERCIAL 

AND  INDUSTRIAL  UNDERTAKINGS. 
The  purchase  and  sale  of  securities  undertaken,  safe  custody  of 

securities,  also  the  receipt  of  dividends.     Correspondence 

invited. 
COUPONS  AND  DRAWN  BONDS  negotiated. 
DEPOSITS  received  at  call,  or  for  fixed  periods,  at  rates  which 

may  be  ascertained  on  application. 
ARTHUR  H.  KING  {General  Manager),        Aastfn  Friars,  London,  E.C.  2. 


What    Balance   Sheets  Tell. 

BOMIUV,     B.4RODA,     MiD    CENTRAL      INDIA     RaH.WAV     CoMl'ANY. 

Gross  earnings  in  the  half-year  to  .September  30  amounted  to 
Ks.  3,95,20,000,  an  increase  of  Rs.  49,37,000,  while  the  expendi- 
ture was  Ks.  1,70,57,000,  an  increase  of  Rs.  15,07,000,  but  the 
ratio  to  receipts  was  1.80  ger  cent,  lower  at  43.16  per  cent. 
Nett  revenue  amounted  to  Ks.  2.24,63,000,  or  Ks.  34,30,000 
motp,  and  the  company's  nett  share  is  approximately  Rs. 
10,89,000.  This  allows  of  the  payment  of  a  final  dividend  of 
li  per  cent.,  together  with  a  bonus  of  like  amount,  and  raises 
the  total  distribution  (including  guaranteed  interest)  for  the 
year  to  0^  per  cent.,  as  compared  with  58  per  cent,  for  the 
previous  year,  and  with  5  per  cent,  for  1916-17.  Business  was 
good  at  all  points,  and  the  increase  in  expenses  was  not  so 
heavy  as  might  have  been  expected. 

New  Cape  Central  Railway,  Ltd. — For  the  past  year  gross 
receipts  were  just  over  ;£ioo,ooo,  or  ;^6,ooo  less  than  the  best 
previous  record,  but  ;^i6,ooo  better  than  in  1916.  Of  course, 
expen.ses  also  increased,  but  the  nett  earnings  were  ;^9,200 
higher  at  ^^47,400.  This  allows  of  the  payment  of  2  per  cent, 
on  the  first  issue  of  shares  and  ij  per  cent,  on  the  second,  third, 
and  fourth  issues.  After  placing  ;^2,ooo  to  reserve  there  re- 
mains ;i;^2oo  to  be  carried  forward,  or  just  the  same  as  the 
amount  brought  in.  We  are  glad  to  see  that  the  company 
makes  steady  progress,  for  it  .serves  a  very  useful  purpose  in 
developing  a  territory  which  has  great  possibilities. 
I>;()r(iLi)iNA  Termin.^l  Co.,  Ltd. — Not  much  progress  was  made 
by  this  concern  last  year,  and  it  is  well  that  the  debentures 
have  the  guarantee  of  the  Leopoldina  Railway  Company,  or 
they  might  be  regarded  somewhat  askance.  As  it  is,  the  com- 
pany is  just  able  to  meet  the  debenture  service  with  a  small 
margin  over,  and  this  would  barely  have  been  accomplished  but  for 
an  improvement  in  the  exchange,  which  was  i3jd.  at  the  end 
of  the  year,  against  i2d.  in  1916.  Nett  revenue,  accordingly, 
showed  an  increase  of  ^^4,000  at  ;^73,3oo,  and  after  paying  de- 
benture  interest,  the  balance  to  be  carried  forward  is  .^^6,570, 
against  ;^2,ooo  brought  in.  The  ;fi, 250,000  ordinary  shares, 
which  on  two  occasions  have  received  threepenny  dividend?, 
nsturally  get  nothing.  However,  traffics  appear  to  be  grow- 
ing steadily,  and  it  is  hoped  that  the  current  year  will  show 
better  results. 

Howard  and  Bullolgh,  LiD.^Some  firms  do  not  seem  to  have 
much  difficulty  about  ascertaining  their  liabilities  under  war 
taxation,  and  this  company  has  already  got  out  its  accounts  for 
the  year  to  May  31.  The  figures  show  a  condition  of  wonderful 
prosperity,  although  it  might  have  been  expected  that  the  cotton 
machinery  in  which  it  specialises  would  not  hpve  been  in  any 
particular  demand.  Anyhow,  the  trading  profits  were  ;{?i75,ooo 
higher  at  ^301,000,  and  in  addition  to  the  regular  dividend  of 
10  per  cent.,  the  directors  are  able  to  recommend  a  bonus  of  5 
per  cent.  This  latter,  however,  only  requires  ;i37,5oo,  and 
consequently  it  is  possible  to  place  .1^73,650  to  reserve  (raising 
it  to  ;^4i2,5oo),  and  ^^30,000,  againsT  ;^io,ooo,  to  dividend  re- 
serve, which  will  then  amount  to  ^^160,000,  but  only  ^8,000, 
against  ^'15,000,  is  written  off  for  depreciation  of  investments. 
And  so  the  carry  forward  is  increased  by  ;^52,ooo  to  ^91,000. 
It  is  very  splendid,  and  we  think  the  directors  are  wise  in  dis- 
tributing less  than  half  the  profits  earned. 

Ruston,  Proctor  and  Co.,  Ltd. — In  the  year  to  March  31, 
nett  profits,  after  providing  for  Government  taxation,  amounted 
to  ;^i7o,ooo,  or  ;^io,ooo  more  than  in  the  previous  12  months. 
After  again  paying  a  dividend  and  bonus  of  10  per  cent.,  the 
re.serve  gets  ^^  10,000  more  at  ;^55,ooo,  and  as  ;^4,ooo  more  was 
brought  in,  the  carry  forward  is  increased  to  this  extent  at 
;^24,2oo.  Except  for  Qprmal  trade  fluctuations,  there  is  little 
in  the  balance-sheet  calling  for  mention,  but  we  may  note  that 
while  creditors  have  increased  half  a  million  at  ;^i,277,ooo,  in- 
vestments are  ^650,000  higher  at  ;^774,ooo. 

Brownlee  and  Co.,  Ltd. — This  Glasgow  timber  firm  only 
managed  to  make  a  nett  profit  of  ;ifio2,ooo  in  the  year  to 
March  31,  a  decrease  of  ;i^32,ooo  compared  with  the  previous 
12  months,  but  as  the  figures  are  arrived  at  after  making 
provision  for  excess  duty  on  the  80  per  cent,  scale,  it  is  highly 
probable  that  the  actual  trading  results  were  better  than  ever. 
Anyhow,  the  reserve  gets  ;i£^35,ooo,  raising  it  to  ;^2io,ooo, 
against  an  issued  capital  of  ^^250,000,  but  last  year  ;/^85,ooo 
was  tucked  away  in  this  fa.shion.  They  are  canny  fellows  up 
in  Glasgow,  but  they  manage  to  do  themselves  quite  well,  as 
the  shares  again  get  a  dividend  of  10  per  cent,  and  a  bonus  of 
similar  amount,  both  tax  free.  Even  then  ^26,650,  or  ^^20,000 
more,  remains  to  be  carried  forward.  Dividend  and  bonus 
together  only  require  ^30,000,  so  that  the  distribution  is  a 
very  conservative  one. 

British  Electric  Tr.action  Co.,  Ltd.— Gross  receipts  in  the 
year  to  March  31  were  ;/^237,9oo,  an  increase  of  ;f  11,000,  but 
the  exf>enses  were  la  little  .higher,  and  the  nett  profllt  is 
^^(),2So  up  at  ;^2og,ooo.  On  the  other  hand,  the  amount  brought 
in  was  ^^ii.ooo  larger,  and  the  amount  available  is  £20,000 
to  the  good  at  ;,f307,ooo.  After  placing  ^,^6,000  more  at  ;f2i,200 
to  reserve  the  dividend  of  3  per  cent,  is  repeated  on  the  reduced 
.capital,  and  the  carry  forward  is  increased  by  ^15.000  to 
^112,000.  With  the  present  addition  the  reserve  now  amounts 
to  ^450,000,  and  the  company  is  gradually  attaining  a  position 
of  solid  financial  stability.  Investments  stand  at  ^^4, 263,000,  or 
about  the  same  as  last  year,  but  the  revenue  from  them  was 
;£5,ooo  higher  at  ;^2io,ooo,  representing  an  average  yield  of 
4.93  per  cent,  against  4.79  per  cent,  last  year.  The  company 
was  so  gorgeously  irresponsible  in  the  past  that  we  are  pleased 
to  be  able  to  record  its  return  to  the  paths  of  virtue,  and  the 
better  results  which  it  is  achieving  in  consequence. 


6i6 


Xlbe  Jnvestors'  IRevtew. 


jLNr 


1918. 


INDIAN  RAILWAYS. 


GROSS  TRAFrtC  FOR  WEEK.        |   GROSS  TRAFFIC  TO  DATE. 

Nahk. 

In.  or  dec.  w 

In.  or  dec 

end 

ing 

Amount       on  last     ^ 
year.      ? 

Amount 

on  last 
year. 

Assam  Bengal 

Apl. 

13 

Ks. 
2,33.546 

Ks. 

+       9,883 

, 

2,33,546 

Ks. 

+        9,883 

Barsl 

„ 

20 

39,900 

—     24,200 

39,900 

—      24,200 

Bengal  &N.-W,     .. 

13 

8,60,490 

+       6,325 

8,60,490 

+        6,325 

Bengal  Nagpiir 

20 

It, 26,000 

+     42,000 

t 

32,46,000 

+    2.13,372 

Bombay,  Baroda  .. 

June 

8 

16,48,000 

—  1,06,000 

1.74,67,0001+  12,28,000 

Burma 

Apl. 

13 

9,74,ot8 

+      24.995 

9,74,018;+      24,995 

Delhi  Umballa       .. 

June 

8 

Sl,tJ0O 

—     11,520 

8,50,4851+      87,556 

East  Indian.. 

,, 

8 

26,64,000 

+  1,47,000 

2,53,25,000'+  15,81,000 

Gt. Indian  Penin.  .. 

May 
Apf. 

25 

24.53,700 

+  2,j6,000 

1,83.83,600,+    7,07,802 

Lucknow-Bareitly, . 

13 

1,40,549 

+     4»,593 

I40,549i  +       42,593 

Madras      and       S. 

1 

Mahratta  .. 

,, 

20 

11,00,000 

+     60,385 

31,25,000+       90,628 

Nizam'sGd.  (BroadI 

,, 

20 

1,68,269 

+      34,832 

4.33,6531+       37.514 

,,        „     (Metre) 
Rohilkund  asd 

,, 

20 

86,991 

—       5,449 

2.49,5S6j-         7.56b 

Kumaon  .. 

,, 

n 

1,01,505 

+      11,745 

1,01,5051+        11,745 

South  Indian 

M 

13 

12,10,607 

—     90,943 

12,10,6071—       90,943 

+  April  I. 


I  October  i. 


TRAMWAY  AND  OMNIBUS.— HOME. 


Dublin  United 

Apr.    5 

7.817 

f. 
+    1,914 

£ 
99.454 

( 
+    19.435 

Hastings  and  Dist. , 

May  27 

1,508 

+       223 

23.207 

+      3,05+ 

Isle  of  Thanet 

.,    25 

4'3 

+         91 

6,525 

—     2,101 

Lancashire  United.. 

June  12 

2,925 

+       366 

65,958 

+     18,221 

Provincial    . . 

,,      I 

3,244 

+       137 

88,402 

+    16,462 

Yorks.  (Wst.  Rdng.) 

May  19 

3,007 

+    1,104 

t 

48,863 

+    11,358 

•  From  Oct. 

1. 

t  Fro 

m  Jan.  1. 

TRAMWAY  AND  OMNIBUS.— FORfcIGN 

AND  COLONIAL. 

£ 

£ 

Ms. 

£ 

£ 

Alabama  Power    . . 

Apr.  § 

138,191 

+ 

3'. 575 

2 

265,020 

+       5',7i8 

Anglo-Argentine    . . 

June  17 

55,314 

+ 

6,894 

♦ 

1,329,992 

+       94,868 

Auckland  Electric. 

Apr.  12 

23,209 

+ 

2,031 

a 

224,466 

+          9,8So 

Brazilian  Traction  . 

.,     S 

M4, 091, 000 

+ 

M3S,ooo 

4 

M 15277000 

—  M8i4,ooo 

Brisbane  Eleo.  Inv. 

May 

37,610 

+ 

4,270 

5 

175,179 

+        14,059 

British  Columbia  . . 

Apr.    § 

1 129,997 

+ 

t32,909 

10 

$1,162,554 

+   t'93,153 

B.A.  Lacroze 

May 

41.315 

+ 

720 

11 

429,380 

+         3,323 

Burmah  Electric  . . 

„        * 

Rs.27,614 

+ 

Rs.3,945 

— 

213,042 

+   Rs.4,945 

Calcutta 

June   8 

Rs.72,232 

+ 

Rs.7,724 

* 

Rsi5l4,256 

+  Rsil5,039 

Carthagena  and 

Herrerias  . , 

May     b 

5,027 

+ 

706 

* 

22,585 

+         3,7j8 

Cordoba  Light 

P.&T 

Feb. 

12,972 

+ 

1,076 

11 

147,938 

+             435 

Hongkong   .. 

Apr.  27 

$13,039 

+ 

938 

* 

$229,677 

+       $5,295 

La  Plata 

' 

5,l6g 

+ 

940 

4 

19,972 

+          2,So; 

20,292 
Rs  31,261 

+          1,603 
+  Rs.  7,U9 

4 

82,153 
Rs.443,140 

+        14,554 
+  Rs.67,5i6 

Madras  Electric    ,. 

June  15c 

Manila  Electric 

Feb. 

168,000 

+ 

25,870 

2 

335,000 

+        46,570 

Mexico 

Nov.   5 

$215,256 

— 

»108,669 

♦ 

.J3,193,106 

—  $197,227 

Rangoon 

May  8 

5,719 

+ 

982 

V 

28,582 

+           3,345 

Singapore  Electric 

Apr.  13 

814,260 

+ 

81,129 

$202,259 

+        $2,871 

Toronto 

„     i 

•500,728 

+ 

«20,885 

4 

$1,943,562 

+      $76,096 

United  of  Monte  V. 

May 

32,301 

+ 

3,585 

7 

238,.338 

+        23,000 

Vera  Cruz    .. 

Mar.    § 

47,700 

— 

4,400 

3 

131,900 

—       23,700 

Winnipeg     .. 

Apr.    § 

«65,739 

— 

»5,676 

4 

$282,595 

—     $39,493 

628  days.       ♦  From  Jan.  t.      i  Nett.       a  From  July  i.      1:  Two  weeks. 
FOREIGN  RAILWAYS. 


I 

£ 

£ 

£ 

Alcoyand  Gandia . . 

June 

ifi 

Ps.  8,000 

— 

2,000 

Ps.  223,100 

-Ps.j6,27o 

Antofagasta    (Chili) 

,, 

16 

55,310 

+ 

15,240 

1,087,540 

+ 

172,855 

Arauco 

Apl. 

13,000 

+ 

2,000 

52,000 

+ 

8,000 

Argentine  N.E.      .. 

June 

15 

10,000 

+ 

400 

437,400 

+ 

71,998 

Bilbao  R.  and  Canta 

May 

4.149 

+ 

133 

22,151 

+ 

3,052 

Bolivar 

,j 

* 

12,000 

— 

670 

125,894 

+ 

14,079 

Brazil 

Apl. 

■' 

■Vl5,325,000 

+  Ml55g764 

Mi983i,ooo 

+  M405g53O 

Brazil  Gt.  Southern    Dec. 

♦ 

Mis.  66,912 

+ 

il  22,712 

M 538,439 

+ 

M74,769 

B.  Ayres  &  Pacieci  June 

15 

160,000 

+ 

85,000 

4,896,000 

+ 

626,000 

Do.  Central     ..1  Apl. 

36,405 

+ 

10,302 

289,099 

+ 

46,182 

Do.  Gt.South'n   June 

i& 

132,000 

+ 

43.COO 

5,551,705 

— 

7,549 

Do,       Western!     ,, 

lb 

73,000 

+ 

29,000 

2,728,000 

+ 

299,000 

Central  Argentine..'     ,, 

8 

140,000 

+ 

60,000 

5,738,200 

+ 

749,100 

C.Ur'g'ayofMte  v.;     ,, 

15 

19,813 

+ 

6,748 

930,995 

+ 

269,786 

Do.   East'nEx.l     „ 

•5 

4,994 

— 

687 

259.931 

+ 

li,3'9 

Do.North'nEx.l     ,, 

I'i 

4,526 

+ 

1,475 

171,065 

+ 

44,6bo 

Do.West'nEx.!     „ 

I'i 

1,737 

+ 

8S 

110,300 

+ 

19,934 

Cordoba  Central  ..      ,, 

15 

45,000 

+ 

12,375 

1,611,000 

+ 

112.545 

Costa  Rica  . 

Apl. 

20 
15 

3,399 
16,965 

+ 

2,585 
1,585 

121,652 
1,061,367 

+ 

101,276 

Cuban  Central 

Juae 

177,338 

Dorada  Extension. . 

May 

9.500 

— 

100 

42,9x1 

2,800 

Egyptian  Delta 

31 

7,917 

+ 

2,168 

47,067 

+ 

13,200 

Ealre  Rios  . . 

June 

15 

18,200 

+ 

5,600 

815,000 

+ 

202,100 

Trench  Sante  F6  . . 

Mar. 

155,760 

+ 

45,329 

+ 

— 

Gt.  South,  of  Spain 

June 

8 

Ps.   24,077 

-Ps6:,40i 

Ps.  678,873 

-PS1513275 

Gi.West.  of  Brazil.. 

,, 

15 

14,300 

+ 

4,403 

408,500 

+ 

107,750 

Havana  Central     . . 

1 

10,456 

+ 

2,323 

4?5.323 

+ 

94,181 

Inter,  of  C.  Amer...l  Apl. 

C 

33,904 

+ 

4,254 

111,780 

23.330 

La  Guaira  and  Car. 

May 

5,500 

— 

2,250 

29,750 

— 

13,000 

Leopoldina 

June 
May 

15 

34,641 

+ 

2,509 

765,649 

+ 

199.154 

Midland  Uruguay . . 

11,702 

— 

1.055 

144,76; 

+ 

l,7»9 

Mogyana 

Mar. 

Ml,7I7,ooo 

+  M197350 

M  7,294,000 

+  Mi2i4a8b 

N.W.  of  Uruguay  .. 

May 

$20,500 

— 

$6,255 

$282,453 

+ 

$12,004 

Nitrate 

June 

15 

35,102 

+ 

6,164 

347.983 

+ 

31,097 

Paraguay  Central  . . 

15 

3.350 

+ 

40 

146,640 

+ 

15,830 

Paulista 

Apl. 

M2, 107,000 

+  M255,58o 

M9,859,ooo 

+  M2249104 

Peruvian  Corpn     , . 

May 

* 

Si, 022, 120 

+  8119,340 

811424,560 

+ 

S1201888 

Salvador 

June 

8 

2,593 

+ 

279 

106,864 

— 

1,889 

State  of  Bahia  S.W. 

Apl. 

M40,ooo 

— 

M2,000 

M277,ooo 

— . 

M55,ooo 

S.  Paulo  (Brazilian) 

June 

16 

23,727 

+ 

1,116 

708,015 

+ 

174,081 

Sorocabana.. 

Apl. 

. 

Me, 169,000 

+  M7l3,l23 

M7,744,ooo 

+  M1422563 

Taltal 

May 

* 

23,168 

— 

29 

273, laS 

+ 

61,067 

United  of  Havana.. 

June 

15 

55,454 

+ 

20,873 

2,92»,S24 

+ 

723.768 

Wnst'n  of  Havana. , 

15 

7,9S8 

+ 

595 

464,616 

+ 

118,963 

Zafraand  Hualva.. 

May 

« 

13.913 

+ 

2,369 

64.563 

+ 

12.323 

'Months,      tjao.  1.   tFiomJu'y 
COLONIAL 


1.    c  Nett.    b  15  days. 

RAILWAYS. 


a  10  days. 


deira 

Feb.'c 

23,620 

t. 
—    28,673 

5 

t 
250,219 

£ 
-      25,441 

Canadian  Northern 

June  14 

$  853,100 

—  $63,700 

: 

$40,119,700 

+  $1098,100 

Canadian  Pacific   .. 

,,    14 

$2,914,000 

—$251,000 

+ 

$64,905,000 

+  $1013,000 

Gt.  Trk.  Main  Line 

„    14 

254,104 

+      33,977 

t 

4,696,802 

+     322,993 

Gr.Trk.  Western.. 

,,    14 

48,997 

f        7,696 

t 

877,721 

+      20,050 

Detroit  G.H.&M. 

.,    14 

13.623 

—        1,973 

t 

277,617 

—      29,771 

GrTkPac  Prairie  Sc 

,.    14 

22,419 

—        2,519 

538,557 

+      83,108 

Uashonaland 

Jan.    • 

52,822 

—        3,300 

4 

226,599 

+        3,232 

Mid.  of  Westn.  Aus. 

Apr.  ♦ 

8,531 

-           650 

10 

79,259 

+        1,651 

New  Cape  Central.. 

May  4 

2,4^3 

+            770 

t 

42,678 

+       7,784 

Rhodesia 

Feb.  *c 

62,666 

—      17.737 

5 

408,466 

—      10,000 

•  Monib 

1.          t 

lulyi. 

t  Jan.  1. 

c  t 

torn  Oct.  I. 

MONTHLY    STATEMENTS. 


NAUK 

RSTT  EARHIHOI  FOR  HOMTB. 

MITT  EARMIIiaS  TO  DATE. 

1  Month. 

Amonnl. 

In,  or  Deo. 
on  last  year 

'1 
ZS 

Amonnt. 

In.  or  Dea. 
on  last  year 

Dols. 

Dols. 

Dols. 

£>oU. 

Aloblson  T.  &  S.  F< 

Jan. 

1,912,000 

-1,689,900 

12 

47,829,000 

—  1,248,000 

Atlantic  Coast  Line 

,, 

1,075,000 

—  212,000 

12 

12,014,000 

Baltimore  &  Ohio  .. 

,, 

1,852,000 

—  1,165,000 

12 

30,589.000 

—  3,425,000 

Canadian  Northern 

Apr. 

541,300 

—   216,600 

10 

3.031,400 
8,207,000 

—  5,231,00c 

Canadian  Pacific  .. 

,, 

3,455,000 

—  720,000 

4 

—  4,323,000 

Chesapeake  &  Ohio 

Feb. 

627,000 

—    160.000 

2 

546,000 

—  1,394,000 

Chicago*  N.W.    .. 

Jan. 

b  785,000 

—2,797,000 

12 

27,015,000 

—  3,634,00c 

Chicago  Burl.  &  Q. 

Dec. 

1,585,000 

—2,276,000 

12 

32,867,000 

—  6,252,000 

Chicago  G.W. 

Feb. 

151,000 

—     36,000 

2 

142,000 

—     357.000 

Chicago  Mil.  &  S.P. 

Jan. 

b  628,000 

-2,291,000 

12 

21,967,00c 

—  9,360,000 

Chicago,  Rock  I.&P. 

Feb. 

271,000 

—   348,000 

2 

351,000 

—  1,636,000 

Colorado  &Southern 

Dec 

—     11,000 

11 

5,320,000 

+      370,00c 

Cuba 

Mar. 

48a.<46 

K     510,194 

9 

2,530,288 

+  1,327,993 

Delaware  &  Hud.  .. 

Jan. 

3,600 

—    720,000 

12 

5.686,000 

—  2.124,00c 

Denver  &  Rio  Gran. 

Feb, 

341,000 

—       12,000 

2 

756,000 

—      294,000 

Erie 

Dec. 

507,000 

+  1,848,000 

12 

10,538,000 
b  £263,750 

-  5,277,000 

Gr.Tr.  Main  Line.. 

Apr. 

144,600 

—    £51,550 

4 

-  £846,600 

Grand  Trunk  Westn 

,, 

*  f  28,350 

—   £17,250 

4 

b  £138,250 

—  £"1,750 

DetroitG.H.&Mil.. 

^, 

b  £9.600 

+        £ioo 

4 

b  £48,000 

—    £11,800 

Gt.  Northern 

Dec. 

1,165,000 

—1,401,000 

12 

22,987,000 

—  6,179,00c 

Illinois  Central      .. 

Feb. 

1, 008,000 

—   238,000 

2 

531,000 

+  2,272,00c 

Kansas  City  Southn. 
Lehigh  Vdlley 

,, 

455,000 

+    59,000 

2 

824,000 1—       10,00c 

Jan. 

6985,000 

—1,346,000 

12 

9,403,000  1 —  2,876,000 

Louisville  &Nashvl. 

Feb. 

1,462,000 

—    25,000 

2 

2,084,000  —  1,289,000 

Minn. S.P.  (Soo)8  .. 

Dec. 

6126,000 

—  883,000 

12 

9,331,000  -3,648,003 

Miss.  K.  &  Texas  .. 

Feb. 

76,000 

—     IJ2,000 

2 

201,000  —     392,000 

Missouri  Pacific    .. 

Nov. 

1,690,000 

+     32JiOOO 

5 

9,425,000  +  1,920,000 

NewYorkCent.&H. 

Feb. 

705,000 

-     243,000 

2 

6     443,000  +  5,019,000 

N.Y.N.  Haven  &H. 

Dec. 

207,000 

—1,795,000 

12 

23,815.000  —2,245.000 

New  York  Ont.&W. 

Apr. 

21,000 

—      60,000 

2 

14,000  J—     185,000 

Norfolk  &  Western. 

542,000 

—     833,000 

2 

765,00c  1 —  2,300,000 

Northern  Pacific  . . 

,, 

862,000 

—    694.000 

2 

1,644,000  —2,139,000 

Pennsylvania    East 

t 

and  West  Lines.. 

4,718,000 

— ^2071000 

4 

ii  5,341,000  j—i22987000 

Phil,  and  Reading  . . 

244,867 

—     112,050 

4 

6  2,482,530  ._ 4,448,250 

118,928 
1,225.000 

+  35.693 
—    244,000 

486,1651+      150,870 
9,576,000,+     632,000 

6t.  Louis  &  San  F. . 

Dec. 

6 

Seaboard  Air  Line.. 

673,000 

—      206,000 

12 

8,628,000  ,—      24,000 

Southern 

Feb. 

1,772,000 

+     412,000 

8 

17,716,000  1+  1,667,000 

Southern  Pacific   . . 

Jan. 

— 

—     536,000 

12 

59,785,0001+7.953.000 

Union  Pacific 



+        72,000 

12 

42,942,000  1 —  2,115,000 

Wabash 

Feb. 

b  166,000 

-         8,000 

2 

b     482,000—1,784,000 

i 

6  Includes  Wise 

onstn  Central.    *  Gross  earamg 

S.      1 

Surplus. 

b  Deficit. 

Subscriptions  to  THE  INVESTORS'  REVIEW 
will  be  received  in  Canada  by 
Messrs.  Sells,  Ltd., 

302,    Shaughnessy    Buildings, 

McGill    St.,  Montreal. 


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London,  W.C., 


—  , ,  Portugal  Street,  Kingsway,   

by  The  Pkoprietor.  Norfolk  House,  Norfolk  Street,  Strand,  W.C  2.— jnoe  22 


for  the  Proprietor  of  The  iNVBSTOas'  Review,  and  Published 
-  9,8.  (N  2721 


TTbc 


5n\>e6tot0'  IRevfew 


FOUNDED    BY    A.    </.     WILSON,    FEBRUARY,     1892. 


Vol.  XLI.— No.  1,069.] 

NBW  SERIES. 


rSeglstered  ai  a~] 
L    Newapaper.    J 


SATURDAY,  JUNE  29,  1918. 


[Price  6d. 


CONTENTS. 


Leading  Articles: — Viscount  Grey's  Ideals  v.  Von  Kuhlmann's 
"Cheek"  —  The  Demoralisation  of  Democracy —  Brewery 
Profits  —  By-the-Way  War  Notes  —  Super-Tax  ;  I.  (pp. 
619-22  and  626-8). 

Passing  Events: — National  War  Bond  Sales  —  Revenue  • — 
Labour  Party  Conference  —  Irish  Affairs  —  Russia  — 
Bank  of  Montreal  v.  Banbury  —  Macmillan  and  Arthur 
V.  London  Joint  Stock  Bank  —  Lord  Inchcape  on 
Government  Interference  —  Mr.  Hughes's  Mission  — 
Marconi  Marine  Communication  —  General  Electric  — 
Government  Book-keeping  Irregularities  —  Cost  of  Pensions 
Administration  —  Bank  of  Montreal  —  Sir  Lionel  Phillips 
on  the  Paper  Price  of  Gold  (pp.  622-6).     - 

American  Business  Notes  : — Surplus  Income  of  the  United  States 

—  Statistics  of   Production  and  Consumption  —  Inter-State 
Commerce  Commission's  Railway  Statistics  (pp.  628-9). 

Insurance  News : — University  Life  —  Motor  Union's  Bonus  — 
Consolidated  Assurance  Co.  ^  Life  Association  of  Scotland 

—  Gresham  'p.  629). 

Mining    News: — Great    Boulder    Proprietary   —    St.    John    del 
Rey  —  Transvaal    Consolidated    Land   and    Exploration  — 
Siberian   Proprietary  Mines  —  Jupiter  —  Tronoh   South  — 
Idris  Hydraulic  Tin  —  Tronoh  Mines  —  Sonsof  Gwalia(p.630). 
Company  Results  in  Brief  (p.  629). 
The  Week  in  Mines  (pp    629-30). 
Public  Income  and  Expenditure  (p.  631). 
The  Week's  Stock  Markets  (pp.  634-5). 


Money  and  Credit  Notes : — Credit  Rather  Dearer  —  Bank 
Return  —  New  South  Wales  Conversion  Loan  —  Russia's 
Paper  Circulation  —  Port  of  Para  Interest  Arrears  — 
Mexico's  Economic  Improvement  —  Fall  in  Enemy  Ex- 
changes—  Foreign  Exchange  Movements — Silver  (pp.  632-4). 

Tea,  Oil,  and  Rubber: — Rubber  Market  —  Lobitos  Oilfields  — 
Sialang  Rubber  Estates  —  Malayalam  Rubber  and  Produce 
(p.  637). 

Company  Meetings : — The  Central  Mining  and  Investment 
Corporation  —  British  Cyanides  —  Tredegar  Iron  and 
Coal  Co.  —  Scottish  Equitable  Life  Assurance  Society  — 
Antofagasta  (Chili)  and  Bolivia  Railway  —  Ceylon  (Para) 
Rubber  Co.  —  Lanadron  Rubber  Estates  —  The  Manila 
Railway  Co.  (1906)  —  Ledbury  Rubber  Estates  —  Great 
Boulder  Proprietary  Gold  Mines  (pp.  638- -7). 

What  Balance  Sheets  Tell  :— -  Demerara  Railway  Co.  — 
Agricultural  Bank  of  Egypt  —  City  of  London  Real 
Property  Co,  —  Investment  Trust  Corporation  —  American 
Freehold-Land  Mortgage  Co.  of  London  —  Park  Gate 
Iron  and  Steel  Co.  —  Meters,  Ltd.,  Manchester —  R.  and 
J.  Hill  —  John  Shields  and  Co.  —  Henry  Clay  and  Bock 
and  Co.  —  Nestle  and  Anglo-Swiss  Condensed  Milk  — 
National  Bank  of  Australasia  (p.  647). 

London  Produce  Markets  (pp.  635-6). 

Dividends  Announced  (p.  636).        Oilfields  Production  (p.  636). 

Answers  to  Correspondents  (p.  636). 

Books  Received  (p.  647).         Traffic  Returns  (p.  648). 


THE    MERCANTILE 
BANK  OF  INDIA,  LTD. 

Head  Office;  15,  Graccchurch  Street,  London,  E.C.  3. 


Capital  Authorised  

Capital  luued      

Capital  Paid  Up 

Reierve  Fund  (Undivided  Profits) 


£1,500,000 

1,125,000 

562,500 

708,432 


Branches : 

INDIA,   BUKMAH.   CEYLON,    STRAITS    SETTLEMENTS 

CHINA.    AND    PORT    LOUIS,    MAURITIUS. 

The  Bank  buys   and  sells   Bills  of  Eichance,   issues  Letters  of  Credit  and 
Circular  Notes,  and  transacts  banking  and  aceacy  business   in  connection  with 

the  East,  on  terms  to  be  had  on  application. 

DEPOSITS  received  for  one  year  at  5  per  cent,  per  annum.     Rates  for  other 

periods  on  application. 

On  ouprant  aooounta  interest  is  allowed  at  >  percent,  pec  uumm  on 

daily  balances. 


ROYAL   BANK   OF  SCOTLAND. 

Incorporated  by  Royal  Charter,  1717. 

PAID-UP  CAPITAIi £2,000,000 

REST  AND  UNDIYIDED   PROFITS  014,968 

DBPOSITS 26,177,865 

Head    Offlce:    ST.    ANDREW   SQUARE,  EDINBURGH. 
Cashier  and  General  Manager,  A.  K.  Wright.         Secretary,  J.  B.  Adshfad 

London    Offlce:    3,    BISHOPSGATE,  E.C.  2. 

William  Wallace,  Manager.  Alex.  Dick,  Deputy-Manager. 

Glasgow  Offlce:     EXCHANGE  SQUARE. 

A.  Dennistoun,  A(!ent.  Thomas   Lillie,  Sub-Agent. 

187  Branchas  throu^out  Scotland. 
Banking  Business  of  every  description  transacted.  Accounts  opened  and  Agency 
business  undertaken  for  Foreign  jnd  Colonial  Banks  and  other  financial  estab- 
lishments. Drafts,  Circular  Notes,  and  Letters  of  Credit  issued  — available 
throughout  the  world.  Cable  transfers  are  also  made.  Dentils  reoeiredat 
interest  repayable  at  call  or  at  notice.    Correspondence  invited. 


THE  BANK  OF  TAIWAN,  LTD. 

Incorporated   by   the   Special   Charter  0/   the   Imperial 
Japanese  Government,  1899. 


HEAD  OFFICE 


-     TAIPEH,   FORMOSA. 


Amoy,  Batavia,  Bombay,  Canton,  Foochow,  Hankow,  Hongkonei 
Kuikiang,  Kobe,  New  Yoik,  Osaka,  Shanghai,  Singapore,  Swatow, 
Soerabaya,  Tokyo,  and  every  important  city  in  Formosa  (Taiwan),  &c. 
The  Bank  has  Correspondents  in  the  Commercial  Centres  of  Russia, 
Manchuria,  Indo-China,  India,  Philippine  Islands,  Java, 
Australia,  America,  and  elsewhere. 


LONDON  OFFICE  -  58,  OLD  BROAD  ST.,  E.C.  2. 


SCOTTISH  AMICABLE 

LIFE    ASSURANCE    SOCIETY. 

(Established  1836.) 

A     MUTUAL     PROFIT-SHARING    OFFICE. 
COMPOUND     BONUSES. 

Bonui    Declared    at    Latest    Invetti^ation    £1    15*. 
per  cent,  to  £4  12a.  par  ccat.  aceordiat  to  duration. 


Head  Office: 
Lradon  Otfioc : 


33,  ST.  VINCENT  PLACE,  GLASGOW. 
I,  THREADNBEDLE  STREET,  E.C.  t. 


THE  YOKOHAMA   SPECIE   BANK.  LIMITED. 

(Registered  in  Japan.) 
ESTABLISHED    1880. 

Subaorlbod  Gapltal     "~        ..        ..    Yen  48,000,000 

Capital  Paid  Up Yen  42,000,000 

Reserve  Fund         ..        ..  ..    Yen  23,100,000 

Head  Office:  YOKOHAMA. 

Branches  and  Agencies  at 
Bombay.  Honolulu.  Newchwang.  Shimonoseki. 

Buenos  Ayres.  Hong  Kong.  New  York.  Singapore. 

Calcutta.  Kobe.  Osaka.  Sourabaya. 

Changchun.  Los  Angeles.  Peking.  Sydney. 

Dairen  (Dalny).  Lyons.  Rangoon.  TientMn. 

Fengticn  (MakdMi).       Manila  San  Fr&ncitco.  Tokyo. 

Hankow.  Nagasaki.  Seattle.  Tsinanfu. 

Harbin.  Shanghai.  Tsingtau. 

The  Bank  buys  and  receircB  for  collection  6il)<;  Exchange,  issues  Draha 
and  Telegraphic  Transfers  and  Letters  of  Credit  on  above  places  and  elsewhere, 
and  traaaacts  General  Banking  Business. 

Depositt  reccivad  for  fixed  periods  at  rates  to  be  obtained  «n  application. 
London  Office:   7,  BISHOPSGATE.  B.C.i. 

K   TATSI7MI.  Maaager. 


THE   BANK  OF  ADELAIDE. 

(iBCorporated  by  Act  of  Parliament,  1865,) 
>«HlirllH  iMHal         -    X1,0N,MI.  lakMrikW  Oavllal    •    ■    MU 

Paid-up  Capital        £300.000 

RoHTve  Food  555,000 

£i,055,eM 

Uncalled  Capital i>5,oea 

RoeetTC  ImMUj  of  Propcleton        6«5,ooo 

^1,805,000 

Loadon  Ofieo— 11,  Leadeahall  Street,  E.C.  5. 
BILLS  OB  Aestralasia  purchased  or  collected. 
DRAFTS  ilsuedand  REMITTANCES  cabled. 
DEPOSITS  raeeirad  (or  fiud  periods  at  rkiee  to  be  aieeiiained  on  appUeati* 

PERCT  ARNOLD,  itum^ 


6i8 


Zbc  Jnvestors'  TReview. 


Jlnk  ^9,   1918. 


LONDON  COUNTY  WESTMINSTER  &  PARR'S  BANK,  Ltd, 


ESTABLISHED    IN    1838. 


AUTHORISED  CAPITAL  £30,000,000,  in  1,500,000  Shares  of  £20  each. 

Reserve!        -        -        -        £6,800.000. 

Chairman:  WALTER  LEAF.  Esq.     Deputy  Chairmen:  Sir  MONTAGU  TURNER,  R.  HUGH  TENNANT.  Esq. 


HEAD    OFFICE  :     41,    LOTHBURY,    E.G.  2. 

Joint  General  Managers:     F.  J.   BARTHORPE.    J.  W.  BUCKHURST.    J.  C.  ROBERTSON. 

Foreign  Branch  Office :    82,  Cornhill,  E.G.  3. 

The  Bank  is  represented  by  Brandies  or  Agents  in  all  tlie  principal  cities  and  towns  of  the  United  Kingdom  and  has  Correspondents  throughout  the  World. 

Spanish  Branches  : — Barcelona ;  Paseo  de  Gracia  8  &  10.    Madrid  :    Calle  de  Alcala  43. 

Affiliated  in  France  ;    London  Gounty  and  Westminster  Bank  (Paris)  Limited. 
Paris  :  22,  Place  VendSme.       Bordeaux  :    22  &  24,  Cours  de  I'lntendance. 

Affiliated  in  Ireland :    Ulster  Bank  Limited. 

All  Cheques  on  the  Ulster  Bank  uill  be  collected  for  Customers  of  this  Bank,  free  of  Commission. 
BXBCUTOR    AMD    TRUSTBB     DUTIES    UNDERTAKEN. 


ENGLISH,    SCOTTISH,    AND    AUSTRALIAN 
BANK,  LIMITED. 

Hend  OfHoe— 38,  Xjaxnbs>,x>ct  Sti?«**,  ES.C.  3« 

Subscribed  Capital £11078,875    a    o 

Paid-up  Capital 539,437  10    o 

Further  Liability  01  Proprietors     ..        ..  539.437  10    o 

Reserve  Fund 500,000    0    0 

LETTERS  OF  CREDIT  and  DRAFTS  on  the  Branches  and  Agencies  of 
the  Bank  in  Australia  can  be  obtained  at  the  Head  Office,  or  through  the  Agents 
of  the  Bank,  In  the  chief  Provincial  towns  throughout  the  United  Kingdom, 
REMITTANCES  made  by  TELEGRAPHIC  TRANSFER. 
BILLS  NEGOTIATED  or  forwarded  for  COLLECTION. 
BANKING  and  EXCHANGE  Business  of  every  description  txaaaaned  with 
Australia. 

E.  M.  lANION,  Maoacer. 


FARROWS  BANK  LIMITED 


Authorised    Capital 
Shares    issued 
Shareholders 


-      £1.000,000 

700.000 

4»000 


All  descriptions 
of  Banking  busi- 
ness, including 
the  collection  of 
Bills.  Dividends, 
Annuities,     etc., 

transacted. 
Foreign  Money 
ezchan!;cd  and 
Drafts  issued  to 
all  parts  of  the 
World. 


Mp. 


Chairman : 
THOMAS    FARROW. 


EVERY   DESCRIPTION 

OF  JOINT-STOCK 
BANKING  JRANSAGTED 

Foreign  Banking  business  of 
all  descriptions  undertaken. 

Agents  throughout  the  World 


,  Strong  Rooms  for 
'  the  safe  custodjr 

ofdeeds and  other 

r-roperty  prft\ided 

,  for  the  use  of  the 

I  Bank's  customers 

Stocks  and  Shai:es 
bought  anil  sold 
on  behulf  of  cus- 
tomers and  tlie 
public    generally. 


HEAD     OFFICE:      1.      CHEAPSIDE,      LONDON,     E.G.  2 

Branches  throughout  the  United    Kingdom,      a  h  &  co. 


NOTICES. 


IMPERIAL  JAPANESE  GOVERNMENT  41 

PER  CENT.  LOAN  (Second  Series). 

NOTICE  IS  HEREBY  GIVEN  that  the  COUPONS  of  the 
above  described  Loan  due  10th  July,  1918,  will  be  PAID  on 
and  after  that  date  (Saturdays  excepted),  between  the  hours 
of  11  and  3,  at  the  Yokohama  Specie  Bank,  Ltd.,  where  lists 
may.  be  obtained.  Coupons  must  be  left  three  clear  days  for 
.examination  prior  to  their  payment. 

For  the  Yokohama  Specie  Bank,  Ltd., 

9,  Bishopsgate,  Londorf,  E.C.2,        tC....TATSOMl,  Manager. 
25th  June,   1913. 


CITY  OF  TOKYO  5  PER  CENT.  LOAN  OF  1912. 

THE    CITY    01~  TOKYO  ANNOUNCE    tjiat   the,.operation 
of  the; Sinking  Fund  for    the    year    1918    has    been    carried    out' 
by  way  of  parchase:sj3n  the  market,  and  tljat  Bppds  for  /75,OQOi 
(nominal),  haj^p.befeji  so  ^lirchased' find  are' now' cancel  led.  ; 

.i>..i-t5  .:..■''.'..'.'..•■■      .■•.■■■.,.".    •■     1.   -1  1 


BANK  OF  NEW  SOUTH  WALES 

EitablUhtd  Itn. 

Paid  up  Capital «3, 904,860 

Reserve  Fund     2,950,000 

Reserve    Liability    of 

Proprietors     3,904,860 

g1  0,759,720 

Head  Offle* :  STDREr,  HEW  SOUTH  WALKS. 

London  Directori : 

Sir  Fridxmck  Grkin,  Chairman. 

H.  L,  M.  Trittom,  E»q.  Walter  S.  M.  Burns,  E«q. 

J.  S.  CAHrscLL,  Stcrtlmy. 
Halkerstone  MBLDruif,  David  Geddie, 

A-tsiitant  Manager.  Accountant. 

The  Bank  has  SS4  Branches  and  Agenclei  in  the  Australian  Slatei, 
New  Zealand,  Fiji,  Papua  (New  Guinea),  and  London,  and  Agents  and 
Correspondents  all  over  the  World,  on  whom  the  London  0£c«  grants 
Circular  Letters  of  Credit  and  Circular  Notes.  Also  issues  DraJts  on 
demand.  Makes  Mail  and  Cable  Transfers.  Negotiates  and  Collects 
Bills  of  Exchange.  Receives  Deposits  tor  Fixed  Periods  on  terms 
which  may  be  known  on  application,  and  transacts  every  description  of 
Australian  Banking  business. 

London  Offloa:  29,  THREADHKEDLiE  STRBBT,  B.C.  3. 


THE  LONDON  &  RIVER  PLATE 
BANK  (LIMITED). 

Established  iSfo. 

Authorised  CapUal  £4,000.000 

Paid-up  Capital 1.800,000 

Reserve  Fund    2,000,000 

BRANCHES — 

ARGENTINE.  —  Buenos  Aires,  Rosario.  Mendoza,  Concordia,  Babia 
Blanca,  Cordoba.  Tucuman,  Parana,  Barracas  (Buencs  Aires),  Once 
(Buenos  Aires),  Boca  (Buenos  Aires),  Calle  Santa  F6  (Buenos  Aires), 
Calle  B  de  Irigoyen  (Buenos  Aires)  URUGUAY.— Montevideo, 
Montevideo  Agency  (Calle  Rio  Negro),  Pajrsandu  (Agencv),  Salto 
(Agency).  BRAZIL.  —  Rio  de  Janeiro.  Sao  Paulo,  Santos,  Per- 
nambuco,  Fara,  Bahia,  Victoria.  Curityba,  Manaos  (Agency).  CHILI— 
Valparaiso,  Santiago.  FRANCE— Paris  (i6  Rue  Haiivy).  Agency  in 
New  York  and  Agents  throughout  the  world. 
Letters  of  Credit,  Drafts,  and  Cable  Transfers  issued-     Bills  negotiated, 

advanced  upon  or  sent  for  collection. — 7,  Princes  Street,  E.C.  2. 


The  union  BANK  of  AUSTRALIA 

Established  1837.  LIMITED.  L-jcorporated  1880. 

Authorised  and  Issued  Capital,  £6,000,000. 
Paid-up  Capital,  jra,ooo,ooo:  Reserve  Fund,  ;fj,ooo,ooo;  together   £4.ooo,c«> 

Reserve  Liability  of  Proprietors 4.000.001 

Total  Capital  and  Reserves f  8,000.000 

HEAD  OFFICE-        -        -       71.  CORNHILL,  LONDON,   E.n.  3. 
DRAFTS  are  granted  on  the  Bank's  Branches  throughout  the  Australian 
States  and  Dominion  of  New  Zealand. 

TELEGRAPHIC  REMITTANCES  are  also  made. 
rtlt.T.S  are  purchased  or  sent  for  Collection. 

DtSPOSITS  are  received  for  fixed  periods  on  terms  which  miy  I  e  ascertained  ■ 
:  on  applicatioa. 


.'•>.. 


ICbe  5nveetore*  IReview. 


Vol.  XLI.— No.  1,069 


New  Series. 


SATURDAY,  JUNE  29,   1918. 


1.    Naw.paper     )   r  rltC  UU. 


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London, W.C 

Telephone  No. :  Telegraphic    Address  : 

Gerrard  9li2.  "  Unveiling,  London." 

The  Editor  cannot  undertake  to  return  rejected  com- 
munications. 

Letters  from  correspondents  must.  In  every  case  be 
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number  of  questions  may  be  put  and  will  be  answered  at  the  rate 
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taken. 

Groups  of  Five  Stocks  for  investment  supplied  at  the  rate  of 
One  Guinea,  each  list  different. 


_l^^  Viscount    Grey's    Ideals    v.    Von 
Kuhlmann's    "Cheek." 


The    style    in    which    \iscount    Grey    writes    is    so 
diplomatic    in    its     smoothness,    although    clear    and 
■definite  enough,  that  it  took  us  more  than  one  reading 
to  be  sure  of  his  drift.     He  is  in  favour  of  a  "  League 
•of  Nations,"   stands  by  the  side  of  President  Wilson 
in  this  respect.     He  recognises  also  that  there  is  more 
^t  stake  in    this  war  than  the  existence  of  individual 
States  or  Empires,  or  the  fate  of  a  continent ;  but  we 
do  not  think  it  just  to  accuse  him.  of  being  pro-German, 
as  some  of  our  wilder  ne\\spapers  did,    and  do.      He 
asks  whether  the  nations  of  the  world  are  prepared  now, 
or  whether  they  will  be  ready  after  this  war,  to  look 
steadily   and  clearly   at   the   aspect  of    the   League  of 
Nations  which  imposes  limitations  and  obligations  upon 
■every    adherent    thereto.      It    cannot   be   a    matter    of 
parchments,  of  treaties  signed  in  Chancelleries,  nor  can 
it  be  a  mere  affair  of  economic  pressure  on  rebels  or 
traitors.     Tliose  States  composing  the  League  that  are 
jjowerful  enough  must  be  ready  to  use  all  the  force — 
economic,  military,  or  naval — they  possess  in  order  to 
.maintain   respect    for  decisions  given.      And    naturally 
Germany  will  have  to  come  into  this  compact  of  nations 
if  it  is  to  enter  into  the  enjoyment  of  the  new  civilisa- 
tion the   conterBplated  League  is  designed   to  secure ; 
but   Lord   Grey   nowhere  implies  that  the    Allies    now 
fighting  Prussian  militarism  are  to  hold  out  the  hand 
to  that  degraded  enemy  forthwith  on  peace  being  <-on- 
cluded.       He    wants    the    .Mlies    to    imitate    President 
Wilson  in  setting  forth  their  idea  of  i>cace,  but  really 
we  hardly  think  that  necessary  just  now.     'ITic  Germans 
know  our  mind  already.     .'\nd  wc  do  not  bclie\"c  muclt 
in  peace  by  treaty  of  the  old-fashioned  kind,  and  never 
have    done.      What  could   we  do   with    men    like  von 
Kuhlmann,  or  von  Bulow,  or  with  any  of  the  trained 
Germans  who  obey  the  behests  of  the  ruling  military 
■caste  in  either  empire?    This  is  a  war  of  nations  started 
by    the    ambitious    dominant    caste    of    the    Teutonic 
Empires,  and  continued  to  gratify  the  lust  of  that  class 
for  world  conquest. 

Before  there  can  be  any  real  peace,  as  \"iscount  Grey 
•says,  Germany  has  to  be  convinced  that  force  does  not 
pay;  that  the  aims  and  policy  of  her  military  rulers 
inflict  intolerable  and  ,-ilso  unnecessary   suffering   upon 


her.  It  will,  obviously,  take  a  long  time  to  teach 
the  German  people  that  peaceful  development  is  pre- 
ferable to  expansion  by  war,  or  that  the  condition  of 
true  security  for  one  nation  is  a  sense  of  security  on 
the  part  of  all  nations.  But  defeat  will  begin  her 
tuition,  and  the  Allies  should  refuse  to  enter  into  any 
agreement  with  her  for  any  purpose  when  the  war  ends. 
Her  rulers  cannot  be  trusted,  and  her  people  are  serfs. 
We  ha\e  but  one  paramount  duty  tjo  fulfil  when  the 
enemy  has  been  beaten  into  submission,  and  that  is,  in 
the  interests  of  the  victims,  to  insist  upon  restitution, 
the  makintr  good  of  losses  wantonly  inflicted  upon 
defenceless  civilians,  (iermany  has  to  set  Belgium  on 
its  legs  again,  even  if  the  task  completes  her  own 
economic  ruin  for  generations,  and  must  give 
guarantees  for  compensation  to  the  people  of  the  little 
nation  for  their  losses.  She  has  to  do  the  same  for 
France,  and  Austria,  with  or  without  German  help — it 
is  not  perhaps  directly  a  question  of  ours  whether  help 
is  given  or  not — must  act  in  the  same  manner  towards 
stricken  Serbia,  towards  Rumania,  and  both  Empires 
towards  Poland,  including  Galicia,  towards  the 
ravaged  districts  of  Russia,  and  elsewhere  wherever  the 
iron  heel  of  the  German  ravager  and  assassin  has  trod. 
Before  we  can  have  a  League  of  Nations  on  the  broader 
scale,  which  means  an  unselfish  union  of  the  liberated, 
we  must  as  Allies  be  united  in  seeing  that  the  masters 
of  the  subject  races  of  these  two  tyrani;iies  are  brought 
to  book,  judged  and  submitted  to  punishment. 
X'iscount  Grey  appears  .stil!  to  nourish  the  conception 
of  Austria  which  has  been  popular  m  all  Foreign 
Offices,  and  sjjeaks  of  lier  as  a  civilised  State  with  .some 
real  disposition  to  accept  President  Wilson's  ideal.  That 
is  unwise  and  weak — old  diplomacy,  in  fact — for  Au.stria 
is  as  barbarous  and  cruel,  as  grasping  and  altogether 
inhuman  as  Prussia — ^her  long  record  of  crimes  against 
her  oppressed  population  proves  that.  Much  of  this  talk 
about  a  League  of  Nations  is  therefore  unreal,  beside 
the  real  question.  What  are  we  doing  as  individuals 
to  elevate  our  own  conceptions  of  the  brotherhood  of 
peoples?  For  unless  wc  can  as  individuals  acquire  a 
more  unselfish  outlook  than  ever  before,  there  is  little 
hope  of  securing  an  enduring  peace  by  a  League  of 
Nations  or  any  other  device  of  the  mere  politician. 
.  Dynasties  with  their  victim  serf  populations  have  risen 
against  us  to  enslave  the  world  for  behoof  of  groups  of 
tvrants,  and  it  has  involved  a  muster  of  all  the  popula- 


620 


abe  Jnveatora'  IRevtew. 


Jlne  _>9,  1918. 


tiOns  attacked  to  repel  the  aggressors.  Our  peoples 
have  bled  and  died  in  millions  to  rescue  us  from  slavery. 
The  end  must  be  a  peace  of  peoples,  not  of  potentates 
and  their  diplomatists. 

Opportunely,  while  we  were  dealing  with  Viscount 
Grey's  letter,  the  newspapers  published  a  translation 
of  the  German  Foreign  Secretary,  Herr  von  Kiihl- 
mann's  speech  in  the  Reichstag,  and  vie  may  well  thank 
him  for  it.  It  would  be  foolish  to  take  Kiihlmann  too 
seriously,  because  he  has  to  do  his  best — and  he  did  it 
well,  with  .1  swing  and  an  impudence  amusing  to  see — 
to  induce  the  deluded  (ierman  people  to  cherish  their 
illusions,  and  so  postpone  the  impending  retribution. 
All  the  same,  the  truculent  insolence  of  the  man's 
attitude  cannot  be  ignored,  still  less  his  cool  proposal 
that  the  Allies  should  state  their  terms.  "  We  have 
stated  ours,"  he  in  substance  said,  "and  it  is  now 
for  the  Allies  to  speak."  Surely  an  attitude  so  un- 
yielding should  convince  even  a  detached  mind  like  that 
of  Viscount  tJrey  that  it  would  be  folly  to  begin  with 
Germany  a  bickering  in  the  market-place,  the  bidding 
as  of  rivals  at  the  fair  for  a  basis  on  which  to  build 
peace,  and  with  the  hope  of  discovering  some  weak  spot 
in  each  other's  armour.  There  can  be  no  negotiations 
of  any  kind  with  men  like  this  Kiihlmann,  with  any 
direct  official  representative  of  the  Hohenzollern 
tyranny,  or  of  the  Habsburg.  One  has  but  to  look  at 
the  insolence  with  which  the  determination  to  hold  on 
to  all  the  land  occapied  is  put  forward  and  illustrated 
by  the  lies  ever  iterated  to  the  effect  that  Germany  has 
never  sought  "  world  domination."  No,  of  course  not. 
She  only  wanted  to  dominate  Europe,  Asia,  Africa,  the 
two  Americas,  and  Australia. 

Since  the  subject  is  up,  may  we  again  earnestly  plead 
for  vigilance  in  dealing  with  Germany.  Studying  as  we 
have  done  for  nearly  four  years  now  German  psycho- 
logy, we  feel  convinced  that  when  the  turn  round  of  ex- 
haustion and  defeat  does  come  to  the  foe,  it  will  be  a 
complete  volte-face.  To-day  Germany  is  still  truculent, or 
her  Junker  oppressors  and  their  spokesmen  are,  because 
they  still  control  every  channel  of  information,  every 
lie  factory,  and  manage  to  keep  the  truth  concealed  ;  but 
the  day  of  disillusionment  is  at  hand,  and  when  the 
military  party  begins  to  see  that  the  truth  can  no 
longer  be  concealed,  it  is  certain  to  exchange  its  insolent 
tone  for  the  whining  of  the  coward  eager  to  enlist  pity 
on  his  side.  We  shall,  therefore,  probably  ha^•e  the 
stories  of  food  distress  in  Germany  more  or  less 
exaggerated  for  our  deluding,  and  worked  up  into 
moving  appeals  for  help.  We  shall  probably  be  told 
that  Germany  is  a  great  country,  and  that  a  people, 
after  all,  full  of  noble  possibilities  must  not  be  allowed 
to  starve.  Already  that  cry  is  beginning  to  be  heard 
about  Austria,  and  we  may  be  sure  the  day  approaches 
when  Germany  will  use  the  same  weapon  in  order  to 
move  the  Allies  to  grant  better  terms,  in  the  hope  of 
escaping  unpunished  for  her  crimes.  There  ought  to 
be  no  reply  from  us,  from  any  of  the  Allies,  to  such 
play-acting.  No  relief  ought  to  be  given  to  the  peoples 
of  either  empire — except  to  the  oppressed  races  within 
their  borders,  if  they  can  be  reached — ^until  their  rulers 
have  surrendered  their  plunder  and  bound  themselves 
to  make  compensation.  This  should  be  our  attitude  in 
regard  to  Belgium,  Russia,  Northern  France,  Serbia, 
Poland,  Finland,  and  every  other  land  that  has  suffered 
despoilment  at  the  hands  of  the  barbarians.  Kiihlmann 
has  "  answered  "  Balfour  by  ignoring  our  Foreign 
Secretary's  request  for  information  about  Prussian  in- 
tentions towards  Belgium.  The  example  is  one  to  be 
followed  in  everything  that  relates  to  the  coming  wails 
of  the  Germans  after  peace. 


Accounts  of  Canada's  crop  prcspects  are  most  cheering,  especi- 
ally at  the  moment  when  our  own  harvest  is,  as  it  were,  hang- 
ing in  the  balance.  That  ours  can  be  a  first-class  grain  and 
root  crop  harvest  after  a  June  almost  rainless  is  highly  im- 
probable. All  the  more  satisfactory  is  it  to  know  that  in 
Manitoba  and  Alberta  not  only  are  the  crops  promising  well, 
but  the  acreage  is  much  increased.  The  total  area  under  wheat 
throughout  the  Dominion  is  estimated  at  15,080.800  acres, 
which  is  1,500,000  acres  more  than  last  year.  Under  oats  the 
area  is  131739,000  acres,  an  increase  of  400,000  acres. 


The    Demoralisation     of  Democracy. 

A  new  answer  has  now  been  provided  to  the  great  ques- 
tion which  has  played  so  prominent  a  part  in  recruiting, 
the  raising  of  war  loans,  the  adoption  of  voluntary 
rations,  and  other  more  or  less  patriotic  movements. 
To  the  ingenuous  infant's  query,  "  What  did  you  do  in 
the  great  war.  Daddy?"  the  most  up-to-date  reply  is, 
"  I  kept  out  of  the  Honours  List,  my  boy." 

So  much  sarcastic  laughter  has  been  excited  by  the 
recent  deluge  of  honours,  orders,  and  awards  of  every 
sort  and  kind  which  have  been  showered  on  the  peaceful 
civilian  at  home,  who.se  work,  whatever  its  merits,  is 
generally  very  well  paid  already,  and  entails  no  risk  of 
life  and  limb,  and  these  rewards,  particularly  the  un- 
fortunate ne^vly  created  Order  of  the  British  Empire, 
have  been  made  so  cheap  that  it  may  be  argued  that 
the  evil  is  in  a  fair  way  to  cure  itself.  We  are  afraid 
that  is  too  optimistic  a  view.  There  will  always  be  a 
large  proportion  of  people  who  like  to  receive  titles  and 
decorations  for  varying  reasons  ;  and  bestowed  on  the 
present  lavish  scale  they  are  becoming  a  very  potent 
instrument  of  bribery.  We  notice  that  the  Prime 
Minister  in  his  recent  speech  at  Edinburgh  took  credit 
to  himself  that  he  had  no  party  organisation  Ijehind  him 
and  had  not  had  the  time  or  the  inclination  to  form 
such  an  organisation,  owing  to  his  absorption  in  the 
war.  No  doubt  Mr.  Lloyd  George  made  this  statement 
sincerely  enough,  but  without  laying  stress  on  the  fact 
that  he  has  a  fairly  powerful  press  organisation  behind 
him  which  exercises  probablv  more  widespread  influence 
than  the  most  active  of  party  machines,  he  forgot  to 
mention  that  as  Prime  Minister  he  holds  in  his  hands 
that  powerful  instrument  of  Government — patronage  ; 
and  owing  to  the  enormous,  indeed,  portentous,  multi- 
plication alike  of  offices  and  of  honours,  he  can  use  this 
instrument  to  enlist  support,  and  to  overcome  opposition 
10  a  unique  degree.  We  doubt  if  Sir  Robert  Walpole 
had  anything  like  the  amount  of  patronage  in  his  hands 
which  is  enjoyed  by  the  present  Prime  Minister  owing 
to  the  immen.se  growth  of  the  bureaucracy. 

In  the  present  House  of  Commons,  according  to  a 
return  just  presented  on  the  demand  of  Mr.  Llewellyn 
Williams,  no  less  than  86  members  hold  office  of  some 
kind,  a  number  sufficient  to  insure  a  Government 
majority  on  any  division  where  the  number  of  members 
in  attendance  is  small.  Of  these  posts  no  less  than  46 
have  been  created  since  the  outbreak  of  the  war.  If 
it  be  true  that  gratitude  is  generally  a  "  lively  sense  of 
favours  to  come,"  the  distribution  of  honours  is  likely 
to  be  a  more  powerful  instrument  in  the  maintenance  of 
a  submissive  House  of  Commons  than  even  the  gift  of 
office.  Excluding  from  consideration  the  80  Irish 
Nationalist  members,  whose  policy  forbids  them  to  ac- 
cept either  places  or  honours,  it  is  estimated  that  since 
its  election  out  of  a  House  of  590  members,  no  fewer  than 
201  have  been  made  Peers,  Privy  Councillors,  baronets 
and  knights,  while  26  have  received  legal  preferment  in 
the  shape  of  judge.ships  and  recorderships ;  in  short, 
the  proportion  of  these  favoured  membefs  approaches 
50  per  cent.  Certainly  at  this  rate  of  progress — or, 
rather,  of  retrogression,  what  our  forefathers  proudly 
spoke  of  as  a  "  free  "  Parliament  will  soon  be  very  much 
to  seek. 

As  to  the  honours  and  titl^es  given  to  others  than 
Members  of  Parliament,  all  that  can  be  said  about 
them,  for  the  most  part,  is  that  while  the  bulk  of  the 
public  probably  knew  of  the  existence  of  the  members 
selected,  they  had  never  even  heard  the  names  of  the 
outsiders  until  they  were  rescued  from  obscurity  in  the 
official  lists.  It  is  certain  that  if  these  lists  continue 
to  grow  in  length  pari  passu  with  the  shortage  of 
paper,  the  newspapers  will  soon  decline  to  publish  them 
even  in  .serial  form,  and  the  small  class  who  mav 
happen  to  be  interested  will  have  to  purchase  the  in- 
formation in  the  form  of  a  White  Paper  or  a  BUie- 
book. 

Lord  Selbornc's  gallant  effort  to  raise  the  standing 
of  the  recipients  of  these  favours  by  insisting  that  \hc 


June  29,  1918. 


Ubc  Jnvestors'  IRevtew. 


621 


grounds  of  the  selection  should  be  stated,  has  failed 
completely,  as  it  was.  bound  to  fail.  A  few  vague  and 
useful  phrases,  which  might  mean  anything  or  nothing, 
were  promptly  devised,  equally  applicable  to  any  per- 
son ;  and  the  character  of  the  list  itself  remained  quite 
unaltered.  What  is  Sir  Leicester  Harmsworth's  qualifi- 
cation for  a  baronetcy?  "Parliamentary  and  public 
services, "  we  are  told.  We  suppose — at  least,  we  hope — 
every  Member  of  Parliament  renders  some  public  ser- 
vice, and,  we  may  add,  he  already  receives  a  salary  from 
the  public  funds  for  doing  so.  If  Sir  Leicester  has  any 
other  special  qualifications  besides  his  name,  the  nation 
is  certainly  unaware  of  them.  Then  we  are  afraid  that 
nothing  will  induce  the  nation  to  believe  that  honours 
should  be  bestowed  on  Government  contractors.  They 
may  be  patriotic,  but  their  patriotism  is  generally  so 
very  profitable — to  themselves — that  further  rewards 
appear  superfluous.  Yet  the  name  of  a  Scots  contrac- 
tor figures  in  the  list  for  a  baronetcy  whose  firm  has 
been  concerned  in  one  or  two  contracts  that  were  cer- 
tainly very  costly  to  the  nation  ;  though  he  may,  per- 
haps, have  been  granted  the  baronetcy  on  another  in- 
disputable qualification  that  he  is  a  connection  of  the 
Prime  Minister.  We  can  only  regret  the  marked  ten- 
dency of  the  latter  to  use  his  position  for  the  benefit 
of  his  friends,  as  illustrated  by  the  remarkable  pre- 
dominance of  W^elsh  names  in  the  list  which  has  led 
the  cynical  to  remark  that  the  intention  is  to  continue 
the  war  till  every  person  in  the  Principality  has  an 
honour  or  an  office  of  some  kind. 

Quite  apart  from  the  meaner  forms  of  jobbery,  how- 
ever, the  great  evil  of  this  wholesale  distribution  of 
rewards  is  the  manner  in  which  it  encourages  the  idea 
that  all  service  to  the  country — it  would  be  almost  true 
to  say  all  neighbourly  duty — is  something  to  be  paid 
for.  It  appeared  from  a  question  in  Par'iament  that 
Mr.  Harrison  Barrow,  a  Birmingham  Quaker  just  con- 
victed under  the  Defence  of  the  Realm  .'\ct,  would  other- 
wise have  received  the  Order  of  the  British  Empire,  and 
a  Member  had  the  curiosity  to  ask  why.  The  reply  was 
that  Mr.  Barrow  had  done  good  work  as  chairman  ol 
the  Local  War  Pensions  Committee.  We  have  no 
doubt  that  qualification  was  as  good  as — perhaps  better 
than — that  of  many  actual  recipents  of  the  Order,  but 
what  is  democracy  coming  to  if  people  are  taught  to 
look  for  rewards  for  doing  the  most  obvious  of  civic 
duties?  The  Dominions,  as  their  protests  show,  are 
waking  up  to  the  danger ;  and  we  should  certainly  do 
well  to  consider  it. 


Brewery  Profits. 


For  some  time  before  the  war  and  until  the  early 
part  of  last  year  few  brewery  reports  were  issued 
without  a  wail  about  the  tremendous  burden  oif  taxation 
and  the  impossibility  of  earning  adequate  profits  under 
existing  conditions.  There  were  several  striking  ex- 
ceptions, and  it  was  noteworthy  that  firms  like  Guin- 
ness, Bass,  and  Wihitbread's,  to  mention  only  a  few  of 
the  most  conspicuous  cases  which  had  not  succumbed 
to  the  temptationi  to  deluge  their  capitals  with  water 
during  the  brewery  boom,  seemed  to  get  along  very 
satisfactorily,  jn  spite  of  the  troubles  that  so  seriously 
afflicted  their  neighbours.  That  many  of  the  latter 
suffered  severely  may  be  gathered  from  a  glance  at  a 
list  of  quotations  over  a  series  of  years.  We  have  not 
space  for  many  examples,  but  the  following  little  table 
may  be  taken  as  typical  of  the  course  of  events  : — 


last  year,  and  a  study  of  the  reports  as  they  have  made 
their  appearance  shows  that  it  is  to  a  very  large  ex- 
tent justified.  The  only  shares  which  have  not  bene- 
fited materially  are  Guinness,  but  they  have  always 
been  a  law  unto  themselves.  On  the  other  hand,  con- 
cerns like  Allsopp's,  City  of  London,  and  Watney, 
Combe,  which  were  in  very  low  water,  have  made 
enormous  strides.  At  first  sight  this  seems  rather  para- 
doxical when  the  condiitions  are  considered.  The  beer 
duty  has  been  twice  increased,  and  there  is  the  80  per 
cent,  excess  profits  lax  in  addition.  Output  has  been 
drastically  reduced,  while  the  cost  of  materials,  labour, 
&'c. ,  has  gone  up  iby  leaps  and  bounds.  At  the  same 
time  the  hours  during  which  intoxicating  liquors  may  be 
sold  have  been  cut  down  to  practically  one-third  of  those 
of  pre-war  days,  and  as  regards  spirits,  the  amount 
released  from  bond  has  been  rationed  almost  as 
severely.  Here  surely  is  a  combination  of  adverse 
circumstances  -which  might  have  been  exjjected  to  break 
the  heart  of  the  stoutest  optimist. 


Allsopp,  ord 

Do.    pref 

City  of  London    

Guinness   

Meux,  pref.  (;f  10)  . . . . 
Watney, Combe,  pf.ord 

Do.  def 


I9I4. 

1915- 

1916. 

1917. 

H. 

L. 

H. 

L. 

H. 

L. 

H. 

L. 

193 

10 

5 

2 

7* 

I* 

25? 

8 

28 

20 

7 

3 

15 

4 

4.5i 

5 

204 

12 

35 

124 

294 

244 

92 

25 

390 

34b 

2974 

210 

2«0 

220 

310 

206 

42/6 

27/6 

39/  15/ 

20/ 

!,■;/ 

4S 

17/6 

46S 

35i 

30  20J 

29J 

i84 

454 

iqj 

38 

234 

16  10  '  15J 

83 

85   12 

374 
51 
94 
300 

44 
92 


Gross 
Profit. 


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£ 

32,300 
25.300 
50.310 
41,500 
182,570 
142,600 


73,660 
60,970 


29,360 
25.490 
27.570 
17.390 
70,400 
69,930 
83,920 
75.810 

48,190 

28,650 

13.300 

8,830 

29,60c 

18,240 

183,930 

181,600 

22,210 

19,900 

259.750 

216, i6o 

84,240 
71,760 
16,940 
9.040 
57.830 
33.360 

53.910 
44.290 
61,950 
47,060 

102,110 

59.170 

119,740 

110,770 


£ 
10,000 

same 
9,000 
9.475 
25.750 
same 


5.850 
same 


7.970 
8,030 
5.130 
6,000 
6,070 
6,500 

13,060 

same 

8,280 
8,140 
3,420 
same 
3.270 
same 
27,000 
same 
7.470 
7,480 
20,240 
20,300 

11,460 
11,740 
2,920 
same 
19.340 
same 

6,460 
same 
13.170 
same 

2,230 

2,420 

11,960 

12,170 


82,380    17,730 
102,220    same 


Deb.      Nett 
Int.       Profit. 

£~' 

18,350 
12,500 
26,320 
18,100 
47.550 
38,660 
38.920 
34,620 
23,860 
18,290 


10,220 
10.330 

16,320 
12.530 
16,230 
4,890 
13,460 
18,100 
51,800 
41,800 

4,640 

2,820 

9,880 

5.410 

26,320 

12,870 

91.150 

81,370 

11,500 

9,680 

90,210 

89.800 

28,540 
20,280 
13.700 
5,800 
38,480 
14,010 

16,420 

9,680 

32,260 

26,600 

59.130 
39.490 
30,420 
29,490 

34.170 
54.000 


Div. 


Total 
Res  'ves 


Carried 
Forw'd. 


9 
9 

74 
5 

(«) 
(") 
8 
8 

10 
134 

id) 
nil 

nil 

10 

6 

15 

10 

ej 
5 

15 
13 


7 
10 

5 
(^) 
(/) 

10 

6i 

124 

9 

14 
9 

2ofe) 


16 

12* 


£ 

nil 
nil 
20,500 
14,000 
40,000 
30,000 
174,000 
154,800 
65,000 
55.000 

2S,000 
25  000 

1,860 
360 
64,160 
56.050 
50,000 
50,000 

135,000 
260,000 

59.830 

54.330 

5.000 

4.380 

78,000 
62,500 
295,000 
269,000 
60,000 
same 
300,000 
same 

40,300 

36,300 

11,000 

same 

10,000 


14,000 
same 
112,500 
same 

82,500 

74.300 

150,000 

130,000 


£ 
10,120 

9.265 
10,740 
9,600 
9.500 
7.300 
10,060 
9,160 
5.720 
4.700 

7.220 
7.050 

2,990 
3,000 
3.030 
1.580 
6,190 
8.350 
22,200 
16.280 

6,oie 

5.870 

29,130 

19,860 

3.450 

3.150 

31.470 

40,700 

18,250 

13,040 

57.930 

46,910 

24.260 

13,140 

6.890 

1,020 

10.030 

5.170 

16,720 
12,040 
28.980 
21,810 

11,760 

6.570 

14.580 

11,660 


130,000  22,180 
120,000  27,000 


It  will  be  seen,  that,  judged  by  market  valuations,  a 
great  change  came  over  the  fortunes  of  "  the  trade  " 


(a)  Four  years'  dividend  on  preference.  (6)  One  year's  dividend 
on  preference,  (c)  Ordinary  capital  doubled  from  reserve,  (d)  One 
year's  dividend  on  preference,  [e)  3  per  cent,  on  preference  shares 
and /13, 275  on /5, 000  ordinary.  (/)  24  percent,  on  preference 
and  ^2,500  {6d.  per  share)  on  ordinary,  {g)  Including  xo  per  cent, 
bonus  taken  from  reserves. 

On  the  contrary,  however,  as  will  be  seen  from  the 
accomipanying  table,  which  gives  briefly  the  results  of 
a  whole  lot  of  second  or  lower-rate  concerns,  profits 
have  increased  enormously.  It  is  impossible  to  put  the 
whole  of  the  results  into  tabular  form,  because  no  two 
companies  render  their  accounts  exactly  in  the  same 
form.  Very  rarely  can  we  discover  the  exact  amount 
set  aside  for  depreciation,  and  there  is  no  settled  policy 


622 


tTbe  Jnvestors'  IReview. 


June  29,  1918. 


as  to  how  excess  profits  tax  should  be  treated.  Space 
forbids  the  possibility  of  our  entering  into  all  these  de- 
tails, and  if  we  made  footnotes  about  every  individual 
case,  they  would  merely  become  bewildering.  But  the 
dividend  record  is  a  fair  guide  to  what  has  actually 
happened,  and  it  will  be  seen  that  even  these  smallish 
outside  concerns  have  been  doing  extraordinarily  well. 
In  the  few  cases  where  dividends  have  not  been  in- 
creased, extra  profits  have  been  tucked  away,  either  to 
reserve  or  in  reduction  of  existing  commitments,  but 
i:i  most  cases  it  is  quite  impossible  to  arrive  at  a  real 
basis  of  comparison,  liut  there  is  plenty  of  evidence 
of  what  is  really  happening.  'I'ake  the  case  of  James 
Deuchar,  Ltd.,  whose  report  is  more  fully  dealt  witli 
elsewhere.  Nett  profits  in  the  year  to  April  30  were 
more  than  doubled,  and  the  dividend  could  be  raised 
ftojn  12  per  cent,  to  20  per  cent,  (tax  free),  while  the 
carry  forward  (subject  in  this  case  to  exce.ss  duty)  is 
only  a  trifle  of  ;£^93,ooo  higher  at  ;^"  117,000! 

What  is  the  explanation  of  this  grotesque  condition 
of  affairs?  Apparently  it  is  just  this:  that  Mr.  Bonar 
Law,  as  Chancellor  of  the  Exchequer,  is  first  of  all  a  well- 
meaning,  but  helpless  tyrO'  at  the  .business,  and,  with 
the  a\erage  colonial's  very  circumscribed  vision,  which 
rarely  reaches  farther  than  "  the  village  pump,"  he 
cannot  see  much  beyond  the  end  of  his  nose.  The 
(jovernment  have  created,  either  deliberately  or  from  a 
totally  wrong  angle  of  vision,  an  organised  sy.stem 
of  colossal  profiteering,  which  blossoms  into  every 
business  transaction  that  the  Government  has  under- 
taken. Frankly,  we  cannot  comprehend  what  may 
be  at  the  back  of  Mr.  Bonar  Law's  mind,  but  when  he 
rather  plumes  himself  on  the  fact  that  whatever  extra 
profit  the  brewers,  publicans,  and  other  sinners  (we 
say  that  in  a  purely  Pickwickian  sense)  may  make,  he 
will  collect  80  per  cent,  of  the  excess  over  the  pre-war 
level,  surely  it  is  time  to  protest.  There  ought  never 
to  have  been  anything  in  the  remotest  degree  approach- 
ing war  profits  of  any  sort  or  description  in  the  death 
struggle  in  which  the  whole  world's  civilisation  is 
engaged.  Our  war  debt  might  have  been  cut  at 
least  in  half  on  any  sensible  basis  between  producers 
and  consumers.  But  Mr.  Law  wants,  we  suppose,  to 
make  the  excess  profits  tax  appear  to  yield  an  enormous 
sum.  He  evidently  does  not  realise  that  this  tax  is 
exacted  on  nett  profits  after  any  imaginable  amount 
has  been  tucked  away  for  maintenance  and  deprecia- 
tion, and  that  in  any  case,  after  these  domestic  details 
have  been  arranged,  the  people,  the  consumers,  are 
mulcted  in  anything  from  three  or  four  times  the  price 
that  it  is  really  necessary  for  them  to  pay.  If  a  manu- 
facturer or  seller  has  an  article  that  used  to  co.st  20s. 
and  was  sold  for  25s.  can  now  get  ;^5  for  the  same 
thing  (and  that  is  really  what  it  often  amounts  to),  he 
can  well  afford  to  hand  back  80  per  cent,  of  the  excess 
to  the  Government — ^he  has  still  a  huge  margin  in 
hand.  But  in  the  end  everybody  suffers,  and  the 
country  most  of  all.  Is  there  no  po.ssibility  of  introduc- 
ing a  little  sanity  into  these  perfectly  sirnple  commer- 
cial questions? 


Passing   Events 


After  all,  there  was  no  debate  worth  mention  over 
the  Finance  Bill,  and  Mr.  Law  was  warranted  in  de- 
claring that  never  was  a  Budget  measure  passed  with 
greater  ease.  There  is  still,  however,  the  luxury  tax 
to  adjust,  and  it  will  be  well  to  avoid  too  great  displays 
of  satisfaction  until  we  see  how  the  suggestions  of  his 
Committees  are  welcomed  by  the  nation.  Rumour  says 
the  problem  is  proving  insoluble,  and  we  should  not  at 
all  wonder  if  it  did.  It  has  been  found  so  in  France,  and 
resembles,  in  fact,  the  Irishman's  plan  for  lengthening 
his  blanket — cutting  a  piece  from  the  bottom  and  sew- 
ing it  on  to  the  top.  While  we  wait  for  the  revelation  the 
financial  pumping  apparatus  of  the  Government  jogs 
along  in  its  usual  style.  ITiere  was  again  last  week 
ended  June  22  a  decrease  of  6,345  '"  the  number  of 
applications  for  National  War  Bonds,  Bank  of  England 


issue,  and  it  brought  the  total  down  to  14,889.  'ihai 
means  a  decrease  of  ;£f  1,269,000  in  the  amount  applied 
for,  which  was,  therefore,  only  ;;£,'20,247,ooo.  Adding 
these  figures  to  the  previous  accumulated  totals,  we 
arrive  at  675,932  applications  in  all,  which  provided 
_£.'8oo,026,ooo.  How  much  of  that  is  really  new  money 
ue  do  not  know.  In  the  preceding  week  ended  June  15 
the  applications  for  Post  Office  National  War  Bonds 
were  4,600  down  at  25,100,  and  the  amount  applied 
for  was  ;^86,900  less  at  ;iC6oi,ooo.  'ITwse  figures  bring 
up  the  total  number  of  applications  through  the  Post 
Office  to  1,245,394,  and  the  amount  of  money  tendered 
to  ;^3o, 989,000.  In  the  same  week  2,358,809  War 
Sa\ings  Certificates  were  sold,  raising  the  total  sales 
of  such  to  206,625,775.  Ihis  means  that  ;^i, 828,000 
was  lent  to  the  Government  in  the  week  on  the.se  certi- 
ficates, and  that  the  total  amount  furnished  up  to  the 
15th  inst.  has  been  ;^"i  60, 134,000. 


The  week's  revenue  was  not  particularly  grand,  being 
only  ;£,'i2,766,ooo,  of  which  ;^i, 602,000  was  contributed 
by  income-tax  and  ;£^4,7 19,000  by  the  excess  profits  tax,  . 
or  altogether  ;^6, 22 1,000  of  the  total  from  these  two 
categories  of  direct  taxation.  We  are  now,  howevei , 
at  the  end  of  the  first  quarter  of  the  fiscal  year,  and 
the  Treasury  receipts  from  taxes  may  be  exjx;ctcd  to 
improve  sensibly  for,  at  any  rate,  the  earlier  portion  of 
the  quarter  now  entered  upon.  Expenditure  of  ail 
sorts  aggregated  ;^ao6,846,ooo,  but  of  that  only 
;^44, 818,000  was  actually  new  money  paid  out  to  meet 
the  bills  due  and  other  current  obligations.  This  was 
at  the  rate  of  ;£"6, 403,000  per  diem,  and  most  of  it  was 
absorbed  by  supply,  by  the  Army  and  Navy,  and 
administrative  charges  of  all  kinds.  These  took 
;^43,o6o,ooo,  or  ^^6, 15 1,000  a  day.  Other  expenses 
were  finance  or  credit  impwsed ;  that  is  to  say, 
/[^52, 507,000  vi'as  raised  on  supply  Treasury  bills,  and 
all  except  ;^6, 637,000  of  this  was  required  to  pay  off 
Treasury  bills  falling  due.  Then  ;^35, 904,000  came  in 
as  proceeds  of  the  larger  sales  of  National  War  Bonds, 
and  War  Savings  Certificates  gave  ;^3, 300,000.  Other 
war  debt  provided  a  modest  ;^i, 049,000,  and  only 
;^i, 000,000  was  raised  on  ternporary  or  "Ways  and 
Means"  advances  against  ;/ri2, 500,000  of  them  paid 
off.  These  advances  are  now  reduced  to  ;^i  13,528,000, 
being  the  nett  amount  borrowed  by  the  Government 
from  the  Bank  since  this  fiscal  year  began.  The  total 
of  the  Treasury  bills  outstanding  now  stands  at 
_;^i ,058,430,000,  and  obviously  it  is  a  total  bound,  in 
existing  circumstances,  to  expand.  Since  the  present 
fiscal  year  began  the  increase  in  the  amount  outstand- 
ing has  been  ;^85, 627,000.  Only  ;^750,ooo  was  last 
week  devoted  under  "  depreciation  "  to  sustaining  the 
market.  Thanks  to  Italian  victories,  the  mood  of  thr 
Stock  Exchange  has  been  more  optimistic. 


Quite  a  satisfying  .speech  was  that  of  Mr.  Purdy  at 
the  opening  of  the  Labour  Party  Conference  on  Wed- 
nesday. He  took  the  sane  view  of  peace  possibilities 
and  of  the  position  of  Labour  at  many  points,  but 
perhaps  the  most  significant  portion  of  his  speech,  the 
portion  which  .should  be  read  and  pondered  over, 
especially  by  those  landowners  who  are  busy  dispos- 
ing of  their  estates  to  hungry  farmers — one  such  estate 
of  several  thousand  acres  has  been  sold  this  week  in 
ten  lots  at  an  average  price  of  £260  an  acre — ifor  it 
cannot  be  doubted  that  Mr.  Purdy  gave  expression,  to 
what  the  soldiers  now  fighting  and  dying  for  us  are 
looking  forward  to  w  h€n  they  come  home.  They  have 
redeemed  the  land  with  their  blood,  and  w.ill  claim  jt 
as  theirs. 

It  was  not  a  scheme  of  emigration  or  paying  out  of  doles 
at:  a  charity  that  was  wanted,  but  a  scheme  which  would  aim 
at  the  maintenance  of  a  proper  standard  of  life — that  would 
give  adequate  provision  for  our  soldiers  and  sailors  or  their 
dependents — prevent  unemployment — abolish  the  poor  law — give 
better  housing  and  a  greater  control  of  industry — place  our 
agricultural  industry  and  the  agricultural  labourer  on  a  fr.irtr 
and  better  basis — revive  our  village  life,  and  make  it  possible 
ior  those  who  come  after  us  to  be  really  able  to  say  that  th's 
lind  and  all  that   was   produced   in  it  belonged   to  the  people 


JfN^   29,    1918. 


-Ul^e  investors'  IReview. 


623 


for  the  use  o£  the   peopU-,  and  not,   as  at  present,  to  a  limited 
cumber. 


On  the  mere  party  issues  raised  fit  the  meeting  we 
can  say  nothing.  Whether  the  Labour  members  of 
the  Government  should  leave  it  or  not  is-  not  a  matter 
of  much  present  importance,  nor  do  we  care  greatly 
whether  the  "truce"  between  Labour  and  the  other 
parties  "  mancfiuvring  for  position  "  in  the  political 
cockpit  is  maintained  or  not.  \^'e  should  have  thought, 
however,  that,  as  they  aspire  to  be  our  governors  in 
the  after-time,  the  Labour  parties  would  have  now 
done  their  best  to  secure  an  apprenticeship  at  the  busi- 
ness. Well,  it  is  their  affair,  although  why  they  should 
vote  to  end  the  truce  by  a  majority  of  753,000  is  some- 
thing of  a  puzzle.  Have  too  tnany  "  titles  of  honour  " 
been  showered  around  among  labouring  men  for  the 
taste  of  the  majority? 

It    is    always    vvith    reluctance    that    we    touch    Irish 
affairs.      There   seems   to  us   to  be    so    much   that   is 
unreal  and  hysterical,  on  the  surface  at  least,  in  Irish 
political   wrangles  that  we  can   never  feel  sure  of  the 
facts    alleged,    or    that    the    views    insisted    upon    are 
genuinely  representative  of  what  the  people  en  masse 
think.    To  all  appearance  the  present  Georgian  adminis- 
tration has  been  as   unable  to  reach  the  truth  as  any 
mere  outsider  like  the  present  writer,   and  its  conduct 
has  therefore  become  almost  a  byword  for  rashness  and 
inconsistency.     Throughout  its  dealings  with  the  Irish 
problem   it  appears  to  have  forgotten  altogether  that 
there  is  a  Home  Rule  Act  upon  the  Statute  Book,  duly 
passed  into  law,  and  only  suspended  in  operation  during 
the  war.      Because  that  fact  was  apparently   forgotten 
the  previous  administration  led  the  way  by  embarking 
in  an  adventurous  career  after  the  Easter  rebellion,  as 
it  might  be  called,   in   1916.      Mr.   Asquith  then  made 
some  rash  promises,   such   as   to  clear  out   the  Castle 
clique,  which  were  found  quite  incapable  of  fulfilment. 
Then  when  Mr.  Asquith  had  given  place  to  Mr.  George, 
that  clever  and  volatile  politician   buzzed  around  and 
promised  this  and  that,  amongst  others  a  new   Home 
Rule  Bill.     Again  and  again  a  pledge  was  given  that 
Home  Rule  was  to  be  introduced,  ail  as  if  no  law  had 
been  in  existence,  whose  putting  into  execution  must 
automatically  insure  self-government  to  Ireland.     -And 
in  spite  of  Sir  Edward  Carson  and  his  army  of  bigoted 
Puritan  irreconcilables  in   the  North,   the  (iovernment 
persisted    in    promising    Home    Rule,    nay,    it    at    last 
became  so  bold  as  to  declare  that  it  would  bestow  Home 
Rule  upon  the  Irish,  but  that  meantime  the  Irish  must 
submit  to  conscription.    Language  of  the  most  emphatic 
and  rebel-defying  kind  was  employed  both  by  the  Prime 
Minister  and  Mr.   Bonar  Law. 


to  accept  as  expressive  of  genuine  patriotic  sentiments 
and  .sympathy.  Germany  is  invited  in  one  poem, 
entitled  "  Ireland  to  Germany,"  to  inake  her  stroke 
sure  ; — 

"  1  his  wish  I  send  thee  o'er  the  sea 

From  Shannon  fair  to  lordly  Rhine, 

The  foe  who  fronts  thee,  too,  is   mine. 

Couldst  be,  my  hosts  vvith  thine  would  be, 

.And  my  re\engc — thy  victory." 

Do  Irishmen  really  believe  that  this  kind  of  thing 
expresses  true  Irish  patriotism?  We  doubt  it  very 
much  ;  but  it  .serves  to  bring  notoriety  to  the  restless, 
and  often  puts  money  in  the  pockets  of  the  needy 
notorietv  hunter.  Never  in  Ireland's  history  has  the 
countrv'been  without  such  traitors,  ready  to  betray  her, 
to  sell  their  friends,  and  leave  the  "  cause  "  in  the  lurch. 
It  appears  to  be  so  once  more,  is  so  always  when  a  heal- 
ing settlement  .seems  most  near.  And  no  doubt  we  plav 
up  to  this  kind  of  thing  by  our  bursts  of  perplexed  rage 
and  si>ells  of  severity.  Therefore  we  are  glad  Mr. 
Shortt  had  the  couraefe  to  declare  that  there  will  be 
no  executions  amongst  the  dupes  and  vanity-swollen 
intriguers  now  laid  by  the  heels.  Punished  they  must 
be,  but  it  is  discipline  rather  than  coercion  or  cruelty  ^ 
in'anv  form  that  is  required.  Tlie  deluded  ones,  not' 
the  Irish  people,  must  pay  for  their  folly.  Only  the 
(iovernment  must  not  hide  things.  Let  us  know  all 
the  truth. 

Russia  continues  to  be  a  land  the  prey  of  rumours, 
and  one  which  declares  that  the  ex-Tsar  has  been 
assassinated  is,  we  hope,  untrue,  as  many  other  tales* 
of  murder  and  sudden  death  have  proved  .to  'be.  Mr. 
Kerenskv,  for  example,  has  escaped  all  the  Bolshevik 
perils,  and  has  suddenly  appeared  at  the  Labour  Con- 
ference in  London,  with  the  object,  it  is  said,  of  urging 
the  Power.s  to  intervene  in  Russia,  and  from  Siberia 
and  Tokio  and  Peking  come  tales  about  impending 
Japanese  intervention,  Russian  opposition  to  that  step, 
conflicts  between  Bolshevik  and  Tczecho-Slav  armies,. 
or  between    native   reactionaries   and  the  revolutionary 


At 


ss 


v^rrwwmM^^ 


Thus  it  went  on,  until  suddenly  one  day  a  batch  of 
arrests  were  made  secretly,  in  mystery,  throughout 
Ireland,  and  as  many  as  could  be  got  at  of  the  Sinn 
Fein  leaders  were  deported  to  England  and  put  into 
gaol  there  without  trial.  Then  the  Go\  ernment  changed 
its  tone  again,  and  declared,  through  the  mouth  of  Lord 
Curzon,  that  Home  Rule  would  not  be  persevered  with, 
and  that  voluntary  enlistment  would  be  given  another 
chance.  It  all  looks  a  comic  opera  sort  of  tale  from 
the  mere  outsider's  point  of  view,  and  yet  we  cannot 
help  thinking  that  the  Irish  factions  are  themselves 
as  much  to  blame  for  the  apparent  indeci.sions  and  self- 
contradictions  of  Governments  as  the  "  strategic  " 
British  poliitician.  Look  at  that  storv  quietly  laid  before 
the  House  of  Commons  by  the  new  Chief  Secretary.  Mr. 
Shortt,  last  Tuesday.  It  was  the  story  of  one  of  the 
silliest  plots  Irishmen  ever  got  up,  a  German  plot  paid 
for  with  Germanv  monev,  nur.sed  into  activity  by 
German  agents  of  the  usual  tvne.  and  tumbled  to  hv  t'"" 
heady  type  of  Irish  "  patriot  "  that  all  modern  historv 
ha.s  painfully  familiari.sed  us  with.  The.se  Irish 
"  rebels  "  avidly  ab.sorbed  any  description  of  falsehood 
their  German  beguiler.s  chose  to  manufacture  for  them, 
and  Mr.  Sh<5rtt  quoted  several  of  the  verses  of  some 
"  poem,"  doubtless  made  in  Germany,  to  show  the  kin-' 
■of  stuff,  that  the  quick-witted  Irishman  was  fool  enough 


SAFETY  FIRST 

Passengers  should  keep  their  arms  inside 
the  rail  or  passing  objects  may  strike 
them,  as  the  lady  above  will  know  ta 
her   cost. 


G^^L 


Electric  Railway  House,  Broadway,  Westminster,  S.W.I. 


624 


^be  Jnvestora'  TRcvicw, 


June  29,  1918. 


forces.  It  is  all  a  confusion  of  strife,  amid  which  one 
has  diHiculty  in  threading  one's  way  towards  the  dis- 
covery of  a  settled  policy.  There  is  only  one  thing 
we  should  like  to  say  again,  and  that  is  to  insist  upon 
caution.  Intervention  may  be  necessary,  and  may  do 
good,  but  it  will  not  do  good  if  ill-timed  and  undertaken 
without  the  assent  of  an.  important  section  of  the 
people.  To  intervene  high-handedly  with  a  vie>w  to 
restore  order  and  set  up  a  Government  which  the  best 
elements  in  Russia  have  not  asked  for  would  be  to 
commit  a  crime.  Help  Russia  we  must  and  shall,  but 
the  help  must  be  given  in  the  way  her  people  want  it, 
and  when  they  want  it,  given  without  conditions  or 
selfish  purposes  of  any  kind. 


A  case  interesting  to  bankers  was  decided  in  the 
House  of  Lords  on  Tuesday.  It  was  a  claim  made 
against  the  Bank  of  Montreal  by  Captain  Cecil  Edmund 
Banbury,  who  sought  to  recover  damages  from  the 
bank  for  alleged  negligence  and  breach  of  duty  while 
acting  as  his  bankers  in  advising  him  on  the  merits  of 
an  investment.  Briefly,  the  story  was  that  he  had  gone 
to  Canada  for  pleasure  with  an  introduction  from  the 
general  manager  of  the  bank  to  its  local  managers 
throughout  Canada,  and  that  he  had  been  advised  by 
Mr.  Gellatly,  the  local  manager  of  the  Bank  of 
Montreal  at  Victoria,  to  invest  $125,000  in  a  loan  on 
mortgage  to  the  Westholme  Lumber  Co.  of  British 
Columbia.  This  he  had  done,  and  the  whole  of  the 
money  had  been  lost,  hence  the  claim.  In  the  original 
action  before  Mr.  Justice  Darling  Captain  Banbury 
won,  the  jury  answering  all  the  questions  submitted  to 
it  in  his  favour,  and  the  bank  was  ordered  to  pay  back 
the  whole  ;£"25,ooo,  he  handing  to  the  bank  in  exchange 
the  securities  into  which  the  money  had  originally  been 
put.  The  Court  of  App>eal  set  aside  this  verdict,  and 
gave  judgment  for  the  bank.  The  case  in  due  course 
came  before  the  House  of  Lordi,  and  five  Law  Lords 
sat  upon  it,  viz.,  the  Lord  Chancellor,  Lord  Atkinson, 
Lord  Shaw  of  Dunfermline,  Lord  Parker  of  Wadding- 
ton,  and  Lord  Wrenbury.  The  Lord  Chancellor  and  Lord 
Shaw,  two  Scotsmen,  gave  a  qualified  verdict,  which 
while  sustaining  the  contention  of  Captain  Banbury, 
ivhich,  in  eflect,  was  that  he  had  been  swindled,  thought 
the  judgment  awarding  him  damages  not  warranted  by 
the  finding  of  the  jury.  The  jury  had  no  f)Ower  to  give 
a  verdict  assessing  damages  at  ;^25,ooo,  with  all  .securi- 
ties to  be  returned  to  the  defendant  bank.  Conse- 
quently,in  Lord  Chancellor  Finlay's  opinion,  there  would 
have  to  be  a  new  trial  on  the  question  of  damages  in 
the  absence  of  an  agreement  between  the  parties.  This 
lame  deliverance  opened  up  a  very  disagreeable 
prospect  for  both  litigants,  but  happily  Lord  Atkinson 
and  two  other  English  judges.  Lords  Parker  and  Wren- 
bury,  took  an  opposite  and  plain,  common  sense  view, 
and  gave  judgment  in  favour  of  the  bank.  In  Lord 
Atkinson's  opinion  the  appeal  had  failed,  and  should  be 
dismissed  with  costs  there  and  in  the  Lower  Courts. 
"  Issues,"  he  said,  "  were  left  to  the  jury  upon  which 
there  was  no  evidence  The  case  for  the  defendants 
was  never  prof)erly  put  before  them,  and  the  damages 
were  assessed  upon  an  entirely  erroneous  basis,  and 
were  possibly  awarded  for  causes  of  action  not  proved 
to  exist." 


This  apipears  to  us  to  1»  a  just  and  most  satisfac- 
tory conclusion  to  a  case  more  difficult  in  appearance 
than  in  actual  fact.  Why  banks  .should  be  peculiarly 
liable  to  be  caught  by  corrtplaints  against  the  advice 
they  may  .give  aibout  the  investment  of  money  we  can- 
not quite  guess,  but  probably  it  is  ibecause  they  are 
popularly  regarded  as  trustees  of  the  client.  And  it 
certainly  is  not  a  banker's  business  to  give  any  such 
advice  as  Captain  Banbury  alleged,  and  the  Bank  of 
Montreal  maintained  throughout  this  litigation  that  its 
manager  in  Victoria  had  never  put  h.imself  forward  as 
the  captain's  adviser.  All  Mr.  Gellatly  did  was  to 
put  the  facts  fully  before  him,  and  allow  him  to  form 
and  to  act  upon  bis  own  opinion;.  That  is  about  all  a 
banker  ever  should  do.  If  he  travels  beyond  that  and 
suggests  or  recommends  particular   investments,    and 


the  advice  turns  out  to  be  mistaken,  he  is  al^^'ays  liable 
to  be  accused  of  interested  or  corrupt  motives  by  the 
discontented  client.  Therefore,  if  the  judgment  of  the 
Lord  Chancellor  had  been  backed  by  the  majority  of  the 
Law  Lords  present,  the  position  of  banks  might  have 
lx;en  made  almost  intolerable,  especially  in  these  days 
when  they  trench  so  much  up)on  the  field  of  the  stock-* 
broker,  when,  every  bank  manager  throughout  the 
country,  one  may  say  throughout  the  Empire,  is  him- 
self a  stockbroker,  and  therefore  bound  to  act  more  or 
less  definitely  as  adviser  to  clients  seeking  investments. 
There  ought  to  be,  and  there  is,  no  question  of  liability 
for  advice  honestly  given,  and  we  hope  the  decision  of 
the  majority  of  the  Lords  in  this  case  will  act  as  deter- 
rent to  others  whose  losses  through  ill-advised  invest- 
ments may  prompt  them  to  try  to  recoup  themselves  at 
the  ex.pense  of  their  banker.  Even  in  the  case  before 
us  it  does  not  appear  to  have  ever  been  alleged  by  the 
plaintiff  that  Mr.  Gellatly  misled  him  of  set  purpose 
and  with  the  object  of  making  money.  That  is  the  only 
.solid  basis  upon  which  the  raising  of  actions  of  this 
kind  can  be  justified. 


Just  over  a  year  ago  a  considerable  stir  was  created 
in  banking  circles  by  the  decision  of  the  Court  of 
Appeal  in  the  case  of  Macmillan  and  Arthur  v. 
London  Joint  Stock  Bank.  Going  out  to  lunch,  "  m  a 
hurry,"  Mr.  Arthur  signed  a  pietty  cash  cheque  for 
^2,  but  the  body  of  the  cheque  was  not  filled  in,  and 
the  clerk  (who  proved  to  be  a  rogue)  had  no  difficulty 
in  making  it  out  for  ;^i2o.  To  all  intents  and  purposes 
it  was  a  blank  cheque,  but  the  Court  of  Appeal  gave 
judgment  against  the  bank  for  ;^ii8.  .At  the  time 
(May  26,  1917)  we  dissented  very  strongly  from  this 
decision,  which  seemed  to  us  opposed  to  all  sense  and 
reason,  whatever  the  legal  quibbles  might  be,  and  wi- 
have  now  the  satisfaction  of  seeing  it  unanimously  re- 
versed by  the  House  of  Lords.  With  the  legal  argu- 
ments which  centred  round  previously  decided  cases 
bearing  on  the  point  we  are  not  concerned,  but  the 
Lord  Chancellor  in  delivering  judgment  put  the  funda- 
mental points  so  clearly  that  they  are  worth  quoting. 
"  It  was  beyond  dispute,"  he  said,  "that  the  customer 
was.  bound  to  exercise  reasonable  care  in  drawing  a 
cheque  to  prevent  the  banker  from  being  misled.  It 
he  drew  the  cheque  in  a  manner  which  facilitated  fraud 
he  was  guilty  of  a  breach  of  duty  as  between  himself 
and  the  banker,  and  he  would  be  responsible  to  the 
banker  for  any  loss  suffered  by  the  banker  as  a  natural 
and  direct  consequence  of  this  breach  of  duty.  In  the 
present  case  the  customer  neglected  all  precautions. 
He  signed  the  cheque,  leaving  entirely  blank  the  space 
where  the  amount  .should  have  been  ."itated  in  words, 
and  where  it  should  have  been  stated  in  figures  there 
was  only  the  figure  "2,"  with  blank  spaces  on  each 
side  of  it.  There  was  a  clear  breach  of  the  duty  which 
the  customer  owed  to  the  banker.  If  the  customer 
chose  to  dispense  with  ordinary  precautions  because  he 
had  complete  faith  in  his  clerk's  honesty  he  could  not 
claim  to  throw  upon  the  b.mker  the  loss  which  re- 
sulted. No  one  could  be  certain  of  preventing  forgery, 
but  it  was  a  very  .simple  thing  in  drawing  a  cheque  to 
take  reasonable  and  ordinary  jyrecautions  against 
forgery.  If,  owing  to  the  neglect  of  such  precautions, 
it  was  put  into  the  power  of  any  dishonest  {>erson  to 
increase  the  amount  by  forgery,  the  customer  must 
bear  the  loss  as  between  him.self  and  the  banker." 
These  seem  to  us  to  be  such  self-evident  propositions 
that  we  are  more  than  ever  amazed  that  the  House  of 
Ix>rds  should  have  to  be  requisitioned  to  enunciate 
them. 

.\t  Wednesday's  meeting  of  the  Imperial  Commercial 
A.ssociation  Lord  Inchcajje  was  very  emjjhatic  in  his 
observations  upoii  the  evils  of  interference  in  the  man- 
agement of  business  by  the  Government.  "  We  accept  it 
for  the  moment,"  he  said,  "  but  it  is  a  vicious  system. 
.  .  .  The  Government  Departments  cannot  conduct 
the  ordinary  business  of  the  country."  He  is  right,  but 
the  evil  has  to  be  endured  while  the  war  la.sts,  and  at 
least  business  men  have  this  consolation — their  experi- 


JiNi;  29,  191S. 


XTbe  5nve6tot6'  IReview. 


625 


ence  will  make  them  determined  to  resume  their 
freedom  when  the  war  ends.  And  meantime  by  co- 
operation, by  the  elimination  of  hindrances  and  rivalries 
they  will  have  acquired  a  new  outlook  on  affairs  that 
may  serve  them  in  good  stead  when  their  shackles  are 
removed. 


There  is  high  sanction  for  the  saying  that  "  a  prophet 
is  not  without  honour  save  in  his  own  country."  Car- 
lyle  in  his  brutal  way  put  it  somewhat  differently  when 
he  said  that  no  man  is  a  hero  to  his  valet.  That  is 
Mr.  Hughes'  unfortunate  case.  It  would  be  impossible 
for  us  to  repeat  some'  of  the  things  said  about  Mr. 
Hughes  in  the  Australian  papers,  but  at  this  end  of 
the  Antipodes  he  gets  ample  compensation.  Comic 
Cuts,  the  Daily  Mail,  Dispatch,  Evening  News — we  are 
not  experts  in  the  Order  of  Merit,  but  try  to  do  our 
best — and  other  organs  of  the  Northcliffe  gramophone 
Press  have  taken  him  up  as  they  did  on  his  last  visit, 
although  it  was  whispered  in  rival  camps — through 
sheer  envy  and  malice,  no  doubt — that  they  were  not 
exactly  broken-hearted  when  he  had  to  take  his  depar- 
ture. Anyhow,  he  has  come  back  again  to  tell  us  how 
the  Empire  ought  to  be  run.  Tariff  Reform,  colonial 
preference,  and  all  that  kind  of  thing,  don't  you  know  ! 
The  dear  good  man  will  probably  afford  us  some  inno- 
cent amusement  in  these  trying  times,  ajnd  Northcliffe 
papers  wiJl  have  another  "stunt  that  failed,"  so 
everybody  ought  to  be  happy,  Mr.  Hughes  most  of  all. 


Continued  expansion  is  shown  in  the  business  of  the 
Marconi  International  Marine  Communication  Co., 
Ltd.,  and  last  year  the  gross  revenue  amounted  to 
;,£,47o,650,  an  increase  of  ;£5'20o,ooo  over  1916,  which 
in  turn  was  ;^6i,ooo  in  excess  of  1915.  Nett  profit 
after  writing  off  ;^'50,ooo  (new)  for  obsolescence  of  plant 
amounted  to  ;^i42,ooo,  an  increase  of  ;^45,ooo,  follow- 
ing a  gain  of  ;^33,ooo.  As,  however,  the  capital  was 
increased  from  ^^350,000  to  ;^6oo,ooo  the  directors  are 
content  to  leave  the  dividend  at  15  per  cent,  and  to 
carry  forward  double  the  amount  at  ^105,000,  subject 
to  excess  duty  for  1916  and  1917.  For  1915  this  tax 
amounted  to  ;^i4,ooo,  but  it  will  necessarily  be  much 
larger  for  the  past  two  years.  The  total  number  of 
stations  owned  and  worked  by  the  company  on  the 
high  seas  was  increased  during  the  year  by  800  to 
2,265,  and  together  with  its  associated  companies  there 
are  now  some  4,000  vessels  fitted  with  Marconi  installa- 
tions. The  Government's  decision  to  make  wireless 
apparatus  compulsory  on  all  merchant  ships  over  1,600 
tons  gross  will  further  increase  the  company's  business, 
and  the  outlook  is  promising. 


Magnificent  results  are  shown  by  the  General  Elec- 
tric Co.,  Ltd.,  for  the  year  to  March  31.  Nett  profits 
amounted  to  ;^348,86o,  an  increase  of  ;^83,ooo,  follow- 
ing a  gain  of  ;^7o,ooo  last  year,  and  with  ;^42,ooo 
more  brought  in  the  total  available  is  ;^i 25,000  higher 
^t  ;£'438,ooo.  After  placing  ;^ioo,ooo,  or  ;^6o,ooo 
more,  to  reserve  the  dividend  of  10  per  cent.,  tax  free, 
is  repeated,  and  the  balance  forward  (subject  to  excess 
duty)  is  increased  by  ^'55,000  to  ;^i45,ooo.  With  the 
present  addition  the  reserve  fund  will  "amount  to  half  a 
million,  and  following  the  now  common  practice  it  is 
proposed  to  capitalise  ^300,000  of  this  and  distribute 
a  share  bonus  of  50  per  cent,  in  respect  of  existing 
holdings.  The  present  shares  are  ^10  each,  but  they 
will  now  be  split  into  £i,  and  the  sanction  of  the  Trea- 
sury has  been  obtained  to  this  course,  although  it  was 
refused  in  an  exactly  similar  case  only  a  few  weeks 
ago.  The  opportunity  will  be  taken  to  increase  the 
capital  by  the  creation  of  100,000  preference  shares  of 
;£,"io  each  and  600,000  ordinary  of  £1  each,  and 
^1,000,000  will  shortly  be  issued.  In  order  to  facilitate 
the  operation  it  is  thought  desirable  to  raise  the  prefer- 
ence dividend  from  6  per  cent,  to  6i  per  cent.,  and  re- 
solutions to  this  effect  will  be  submitted  to  an  extra- 
ordinary general  meeting.  The  directors  suggest  the 
formation  of  an  employees'  pension  and  benefit  fund, 
and  propose  to  allot  to  trustees  ;^25,ooo  in  ordinary 
shares,   the  balance  of  the   present     ordinary    capital. 


With  the  bonus  shares  this  will  represent  an  investment 
of  over  ;^"'i  15,000,  so  that  the  fund  will  make  a  very 
handsome  start.  Everything  looks  as  prosperous  as 
could  be  desired. 

There  was  prophetic  genius  in  Mr.  Gladstone's  in- 
sistence that  the  office  of  Comptroller  and  Auditor- 
(jeneral  should  be  completely  independent  both  of  the 
Chancellor  of  the  Exchequer  and  the  Cabinet.  We 
recall  how,  otherwise,  the  South  African  War  scandals 
might  have  been  hushed  up,  and  on  an  infinitely  larger 
scale  the  same  sort  of  thing  would  happen  now. 
Think  of  the  kind  of  "  eye-wash"  we  should  have  to 
put  up  with  if  the  opiniions  of  Mr.  Bonar  Law  and  Sir 
L.  Worthington  Evans — who  ought  to  know  better — 
were  allowed  to  prevail !  They  are  apparently  content 
with  the  book-keeping  Irregularities  disclosed,  particu- 
larly in  the  case  of  the  Ministry  of  Munitions,  because 
"  there  is  no  evidence  of  loss  "  in  connection  with  the 
transactions  pilloried.  That  is  an  enviably  smug  frame 
of  inind  In  w-hlch  to  approach  the  subject,  especially  as 
the  Auditor-General  states  that  "  as  a  rule"  the  mis- 
takes discovered  have  been  put  right  or  are  la  course 
of  rectification.  But  he  Is  also  careful  to  point  out  that 
owing  to  shortage  of  staff  and  the  enormous  mass  of 
chaotic  detail  to  be  dealt  with  "  test  examinations  " 
could  only  be  made  in  a  relatively  small  proportion  of 
cases  ;  and  although  It  may  or  may  not  be  true  that 
"  not  a  penny  has  been  lo.st  in  the  300  odd  national 
factories  through  loose  book-keeping,"  as  Mr.  Walter 
Runciman  pointedly  inquires  :  "  Can  Ministers  give  an 
assurance  that  loose  book-keeping  has  not  led  to  the 
loss  of  public  money  in  the  Department's  dealing  with 
the  5,000  odd  controlled  establishments?"  It  would 
have  been  unreasonable  to  expect  that  everything 
would  work  with  mechanical  precision  from  the  start 
in  a  Department  which"  had  to  be  hastily  organised  to 
cope  with  a  definite  emergency,  and  the  serious  com- 
plaint is  that  the  blundering  has  gone  on  even  after 
attention  has  been  called  to  It.  The  full  tale  of  the 
waste  and  extravagance  will  probably  never  be  told, 
but  under  any  conceivable  system  it  is  difficult  to  con- 
done duplicate  payments  of  large  amounts,  or  the  case, 


GRESHAM 

Fire  &  Accident  Insurance  Society,  Ltd. 

Head  Office:   St.  Mildred's  House,  LONDON.  E.G. 


Authorised  Capital  £500,000 
Subscribed  .  .  £300,000 
Paid-up       .        .        .    £200,000 

The  Society  undertakes  the  following  classes  of  Business : 

Fire. 
Loss  of  Profits  resulting  from  Fire. 

Fixed  Charges  and  increased  Working  Expenses. 

Personal  Accident  and  Sickness. 

Public  Liability. 

Property  Owners'  Liability. 

Burglary,  Larceny  &  Theft. 

Plate  Glass.    Workmen's  Compensation. 

Fidelity  Guarantees.         Motor  Cars. 
Lifts,  Boilers,  Engines,  Electrical  Plant. 

Manager    .        .        .        .     T.  BRAND  MILLER. 
Branchet  throughout  the  United  Kingdom. 


626 


Zbc  investors'  IReview. 


June  29,  1918. 


for  instance,  where  one  contractor  was  getting  36s.  per 
100  (on  a  trifling  order  for  over  4,000,000)  for  work 
that  other  firms  were  doing  for  14s.  to  17s.  6d.  And 
the  Chancellor  of  the  Exchequer  seems  to  think  that 
these  things  do  not  matter  very  much  because  the 
Treasury  collects  80  per  cent,  of  the  excess  profits  ! 
'lo  attempt  to  comment  on  that  kind  of  mental  attitude 
might  offend  Dora. 

Our  veneratble  contemporary,  the  Economist,  has  re- 
cently been    the   vehicle    for    comments    of    a    .severe 
character  on  the  pensions  administration  and  its  Labour 
politician    figurehead,    Mr.    John    Hodge,   of  (llasgow. 
Last   week    its   corrcspjondenl    endca\oured   to    get  at 
the  cost  of  iidmiiiislcring  the  benevolent  Mr.  Hodge's 
department,   and    did    it     in    this    way  : — Ciovernment 
Actuary's  estimate  of  cost  of  pensions  and  gratuities  for 
1918-ig,  ;£'37,30o,ooo — so  modest   as  that  !     No  won- 
der Mr.   Hodge  has  been  telling  old  pensioners  that  he 
is    hot    foot    after  "  more  "  for    them — Parliamentary 
Secretary's    estimate    of   total    costs    of    department, 
;^46,ooo,ooo  ;  difference, ;^'8, 700, 000,  an  excess  in  which 
is  included  cost  of  conducting  the  business  of  the  de- 
partment.    That  cost  said  Secretary  was  unable  to  par- 
ticularise,   or   dared   not,   but    the     correspondent    we 
quote  tries  to  reveal  the  secret  for  him,  and  arrives  at 
the  delightful  conclu.sion    that,    as    now    Hodged,    the 
department  requires  a   staff   equal  to   one   worker  for 
every  three   men  who  have   been  discharged.     If   this 
guess  rubs  elbows  with  the  facts,  then  all  we  can.  say 
is  that  Mr.  John  Hodge  must  be  a  very  smart  man  in- 
deed, for  he  goes  on  increasing  his  staff  and  piling  up 
costs,  as  if  the  work   to  be  done  were  overwhelming. 
His  staff  has  increased  at  the  rate  of  260  a  month  .since 
he  took  over  the  job  from  Mr.  Harncs  ten  months  ago, 
and     if     he     succeeds      in     extending     his     activities 
to    the     pensioners     of     earlier     date,     getting     them 
"  more,"     the    vistia    of    expansion     recedes    towards 
infinity.       What     a     ^glorious    feeling    of    power    the 
man  must  have  in  slinging  what  he  calls  money  around 
in  the  way  he  does.     No  anxiety  ever  crosses  his  mind 
about  "ways  and  means."     Can  he  not  draw  ad  lib. 
LO.U. 's  on  the   Imperial  revenue  of  a  century  or  so 
hence,  if  an\-,  and  joyfully  dispense  the  proceeds  now? 
Has  he  not  just  appointed,  or  is  in  the  throes  of  appoint- 
ing, .some  350  male  chiefs  to  the  local  War  Pensions 
Committees  at  commencing  salaries  of  ;^25or'     Ls  this 
done  in  order  to  get  the  work  pushed  forward?    Xo,  we 
fear  it  may  only  be  in  order  to  have  a  force  on  hand 
"  solid  for  Labour  "  when  the  General  Election  arrives. 
The  work  in  arrear  at  the  pensions  offices  will  certainly 
not  be  speeded  up  by  these  new  officials.     It  may  even 
be  rendered  more   inextricably  confused  than   ever  by 
their  ignorant  intermeddling.    They  know  nothing,  and 
for  a  time,    more   or  less  prolonged,   will  have    to  be 
trained  and  coached  by  the  displaced  \\omen,  many  of 
them  proved  administrators,  most  of  whom  have  toiled 
lofkg  and  gratuitously  on  these  committees,  and  done 
no , enormous  iimount  of  excellent  work  there.     All  they 
have   learnt    is  now  to  be   at    the   service   of  the  new 
masters.     What  if  these  displaced  women  resent  their 
treatment?     That   is   a    question   for   the   Right    Hon. 
Jdhn  Hodge,   M.P.,  political  tactician.      He  may  have 
weighed  it,  and  decided  to  risk  the  loss  of  the   female 
vote.     Great  things  are  at  stake.     He  hears,  as  we  all 
do,  that  the  first  Government  under  the  new  franchise 
may  Ije   "a  Labour  (iovernment,"  and   is  confidently 
assured  by  all  friends  and  political  quidnuncs  that  the 
second  Parliament  of  the  now  democracy  will  certainly 
beget  "a  real  Labour  Cabinet."     What  then  could  be 
rrKjrc  to  the  purpose  in  his  view  than  the  manufacture 
of  a  party  of  Labour  now?    And  could  there  be  a  better 
use   made    of   the    chance    afforded   bv   credit   lavishh- 
cueated   and  dissipated  as   "  money  "    lo  constitute  a 
paid  following  great  enough  to  guarantee  Labour  its 
coveted   victorv?      Critics    should    be    merciful.      New 
parties  are  neither  created  nor  consolidated  in  a  week, 
and  without  cash. 


year  to  April  30  added  18  millions  to  current  accounts, 
raising  them  to  $109,852,000,  and  15  millions  to 
interest  bearing  deposits,  which  now  amount  to 
$247,905,000.  Notes  en  circulation  have  risen  6J 
millions  to  $28,350,000,  all  of  which  is  e\'idence  of 
war-generated  pro.sperity.  Cjold  and  .silver  coin  has 
been,  reduced  a  little  to  $20,930,000,  but  Dominion 
notes  arc  doubled  at  $60,458,000,  while  banking 
balances  and  short  loans  are  25  millions  lower  at 
$112,264,000,  Municipal  and  other  investments  have 
risen  17  millions  to  $45,280,000,  loans  to  niunici- 
palities  seven  millions  to  $18,136,000,  and  discounts, 
etc.,  in  Canada  nine  millions  to  $100,295,000.  The 
balance  sheet  totals  at  8426,322,000  an  increase  of  40 
million.*!.  Profits  have  consequently  risen  $105,000  to 
$1,288,000,  and  after  paying  the  usual  div,idend  and 
bonus  of  6  per  cent,  for  the  half-year  $100,000  (new) 
is  written  off  bank  premises,  and  the  carry  forward  is 
increased  by  $230,000  to  $1,785,000.  It  all  looks  very 
flourishing,  and  perhaps  it  is  just  as  well  in  present 
circumstances  that  there  is  not  much  evidence  of 
general  commercial  enterprise  on  the  bank's  part,  as 
judged  by  its  bill  case. 


A  private  meeting  will  be  held  next  week  of  the  chief 
representatives  of  gold  production  in  the  Empire  with 
a  view  to  formulating  their  case  for  an  increased  price 
for  gold,  to  be  submitted  to  the  Government.  This  an- 
nouncement was  made  by  .Sir  Lionel  Phillips  at  the 
meeting  of  the  Central  Mining  and  Investment  Cor- 
poration on  Thursday  in  the  course  of  an  interesting 
speech  on  the  gold  problem.  As  he  pointed  out,  while 
the  value — the  standard  prices— received  for  gold  has 
remained  unaltered  the  cost  of  winning  it  has  sub- 
stantiately  increased,  with  the  result  that  large  blocks 
of  ore,  below  a  certain  value,  cannot  be  treated.  In 
consequence  the  production  of  gold  has  decreased  sub- 
stantially in  all  the  gold  fields  of  the  world,  and  will 
decrease  still  further  unless  steps  are  taken  to  remove 
the  cau.se  of  the  diminution.  The  increased  cost  of 
production  is  a  grave  matter  to  a  large  number  of  low 
grade  mines  on  the  Rand,  for  they  will  shortly  be  com- 
pelled to  cease  operations  under  present  conditions. 
The  richer  mines  can  by  selective  mining  maintain  their 
profits,  but  only  at  the  expense  of  the  future  of  the 
mine.  Sir  Lionel  contends  that  under  the  present  pur- 
chase arrangements  the  British  Government  pays  less 
for  the  gold,  less  than  its  real  value.  The  rates  of 
exchange  show  this,  and  on  this  basis  of  valuation  the 
Government  has  therefore  made  a  substantial  profit. 
Sir  Lionel,  however,  docs  not  think  that  the  rates  of 
exchange  altogether  afford  a  fair  basis  for  the  proper 
^■aluation  of  gold,  but  admits  that  the  problem  of  deter- 
mining what  is  its  present  real  value  still  awaits  a 
solution.  In  view  of  the  extent  of  the  decrease  in  pro- 
duction, and  the  importance  of  maintaining  the  gold 
income  of  the  Empire — which  is  63  per  cent,  of  the 
world's  output — the  time  seems  to  have  arrived  for  the 
Government  to  onpoint  an  expert  Committee  to  inquire 
into  a  subject  which  obviously  bristles  with  difficulties, 
and  which  requires  very  careful  handling  if  a  proper 
solution   Is  to  be  devised. 


Canadian  deposits,   as  might  be   expected,  continue 
to  mount  up,  and  the  Bank  of  Montreal  In   the  half- 


By-the-Way  War  Notes. 

Too  many  amongst  us  were  ready  six  months  ago  to  lose 
faith  in  Italy's  power  to  sustain  the  war  after  the  catastrophe 
of  Caparello.  We  were  never  amongst  the.se.  never  doubted  for 
a  moment  th.it  the  spirit  of  Italy  was  resolute  in  defence  of 
her  liberty,  of  the  worJd's  emancipation,  and  that  the  souT 
which  animated  Garibaldi  and  his  heroic  thousand  was  .-"s 
dominant  as  ever  in  the  Italian  nation.  The  victory  of  the 
past  week  has  proved  this  to  he  the  true  view.  Not  only  has 
the  army  recovered  from  the  demoralising  effects  of  the  Austrian 
advance  last  November,  but  under  its  new  chief.  General  Diaz. 
it  has  been  trained  in  resourcefulne-ss  and  attuned  to  deeds 
of  the  highest  heroism.  Mo-^t  heartily  do  we  rejoice  in  Italy's 
victory. 

All,  however,  is  not  yet  over.  In  the  old  days  Austria  would 
probably  have  set  to  worli  her  machinery  of  illusion  and 
intrieue  to  manoeuvre  a  sham  peace,  but  there  is  no 
Napoleon  III.  to-day  to  trick  the  Italian  nation  into  a  sudden 
conclusion  of  the  war.     Italy   must,    and  will,  fight   on,    and 


June  29,  igiS. 


Ube  5nve6tor6'  IReview, 


027 


lias  much  yet  to  do.  l-'or  the  oppressed  Austrian  peoples  are 
not  yet  free,  and  the  deceptions  of  Kaiserism  have  not  been 
suept  away;  therefore  we  must  look  for  a  continuance  of  the 
hghting  in  the  Trentino  and  in  other  sections  of  the  trout 
along  the  Southern  Alps  to  the  sea.  And  only  in  the  utter 
ruin  of  the  Habsburg  imposture  can  such  a  state  of  things  be 
brought  into  existence  as  will  provide  Italy  with  peaceable 
neighbours   in   the   time  to  come. 

The  victory  of  Italy,  even  as  it  stands,  must  have  a  powerful 
effect  upon  the  whole  Teutonic  offensive,  east  and  west.  It 
may,  therefore,  be  true  that  Hindenburg  and  Ludendorff  are 
f  renziedly  pushing  on  preparations  for  another  series  of  massed 
assaults  on  the  Allied  lines  in  France  and  Belgium.  We  hope 
that  we  are  as  ready  to  do  our  share  of  repelling  these  assaults 
as  the  Italians  have  proved  themselves  to  be  in  attacking  and 
scattering  the  hosts  of  Austria.  If  our  men  are  led  as  the 
Italians  have  been,  if  our  Headquarters  Staff  is  as  keen  and 
vigilant  as  the  Italian,  then  there  is  not  the  slightest  fear  of 
the  result.  The  Germans,  by  breaking  out  and  renewing  their 
Wild  boar  rushes  or  feats  of  vulpine  cunning,  will  merely  take 
one  more  step  towards  their  destruction  as  a  devastating  and 
bestial  force  in  human  affairs. 

But  even  were  the  French,  the  Americans,  the  Belgians,  and 
ourselves  completely  victorious  in  the  expected  strife,  it  does 
not  follow  that  the  war  would  immediately  end.  Von  Kiihl- 
raaun  was  only  hinting  at  the  unpleasant  truth  when  he  told 
his  countrymen  that  the  war  (ould  not  be  ended  by  arms  alone, 
and  that  it  would  last  beyond  the  present  year.  All  the  marion- 
ette puppets  of  the  German  Press,  bv  the  way,  have  been  set 
screaming  against  him  for  saying  that,  and  William  the  insane 
and  his  military  bosses  have  censured  him.  From  this  we  infer 
that  the  impression  is  sought  to  be  conveyed  that  he  did  not 
speak  the  mind  of  the  nation,  that  he  is  a  traitor,  in  fact,  to 
the  "ever  victorious"  monster  whose  falsehood  equals  his  cant 
and  Iiis  cunning.  W^e  do  not  believe  in  the  genuineness  of  these 
expressions  of  opinion,  and  regard  Kiihlmann's  speech,  whether 
in  the  original  or  in  the  amended  version,  as  of  set  purpo.sc 
designed  to  lay  the  foundation  for  an  energetic  "  peace  assault  " 
to  be  launthed  before,  oi;  simultaneously  with,  the  slaughter  now 
said  to  be  at  hand.  Already  the  story  has  been  circulated  that 
some  neutral  Power,  or  Powers,  will  be  chosen  by  the  knaves  to 
try  and  trap  the  Allies  into  a  talk  about  their  terms,  and  so  on. 
We  are  not  likely  to  be  taken  in  by  any  such  manoeuvre,  and 
must  hold  steadfast  to  our  purpose  :  S'o  negotiations,  no  ex- 
change of  views,   until  Prussian  militarism  has  been  destroyed. 

We  owe  this  rigidity  of  attitude  to  the  down-trodden 
German  people  themselves,  for  they  are  not  now  all  besotted 
worshippers  oi  the  mouthing  K:iise"r  and  his  officers  and  land 
monopolist  oppressors.  A  manifesto  was  composed  by  the  Inde- 
pendent Socialists  in  Germany  a  short  while  ago,  but  naturally 
its  publication  was  forbidden  by  the  authorities.  A  translation 
of  it,  however,  appeared  in  W'ednesday's  Westminsler  Gazelle, 
arid  revealed  the  fact  that  there  are  sane  people  in  Germany 
still,  and  that  they  are  capable  of  understanding  the  facts  of 
the  position,  capable  also  of  opposing,  though  not,  alas  !  to  the 
death,  the  tyrants  by  whom  they  are  oppressed  But  the  party, 
helpless,  gagged  and  manacled  as  it  is,  circumscribed  in  its 
speech  and  movements,  is  forbidden  to  indulge  in  ,nny  form  of 
public  manifestations.  Vet  there  is  hope  for  the  German  people 
just  in  proportion  as  the  enlightenment  shown  in  this  mani- 
festo spreads,  and  we  must  not  abandon  that  better  spirit  in 
the  Teutonic  Empires  any  more  than  we  can  forsake  Belgium, 
i^erbia.  Rtimania,  Russia,  the  long-harried  subjects  of  the 
Turk,  the  Poles,  any  one  of  all  the  enslaved  and  ground-down 
nationalities    now     pining     for    deliverance. 

Because  our  task  is  so  gigantic  it  is  not  going  to  be  finished 
with  the  next  great  fight,  nor  perhaps  for  many  a  month  after, 
iiut  we  ma}'  say  that  meanwhile  even  the  heavens  are  fighting 
tor  us  if  it  be  true  that  the  harvests  all  over  Germany  and 
Austro-Hungar}'  are  partially  blighted,  for  that  means 
starvation  and  inconceivable  misery.  If  the  impending 
calamity  would  strike  the  guilty  alone  we  should  have 
but  little  regret  at  its  coming,  but  it  is  horrible  to 
think  of  the  affliction  which  threatens  the  stripped  anrj 
forsaken  com-mon  populations  throughout  Central  Kurope. 
Ail  we  dare  hope  is  that  their  miseries  may  goad  them  to  re- 
sistance, and  that  when  they  rise  in  their  mas.ses  to  claim 
justice  from  their  tyrants,  the  troops  may  side  with  them,  even 
as  when  the  Revolution  of  '89  broke  out.  For  in  the  food  crisis 
to  come  the  hunger  may  be  a  more  effective  force  in  working 
out  the  deliverance  of  the  oppressed  than  the  deadliest  murder 
apparatus  ever  mounted.  Ah,  if  the  stupid  and  stupefied 
soldiers  would  but  awake  and  become  ccn.scious  of  their  rights 
as  men  how  soon  the  war  would  end,  how  soon  the  age  of 
sacred    or    "catholic   and    apostolic"    majesties    disappear! 

So  absorbed  have  we  been  in  watching  the  great  clash  of 
arms  in  Italy,  and  in  rejoicing  over  the  completeness  of  the 
Italiaft  triumph,  which  has  restored  her  old  lines,  and  given 
back  to  Italy  no  small  portion  of  the  artillery  captured  from 
her  in  the  defeat  of  last  Xovember — that  we  have  paid  too  little 
attention  to  the  continuous  and  successful  raiding  on  the  W'est 
front,  both  aerial  and  terrestrial,  or  to  the  progress  of  General 
Allenby's  Army  in  Palestine.  Nevertheless,  our  operations  on 
all  fronts  are  carefully  planned,  successfully  carried  out,  and 
an  excellent  preliminary  to  the  final  defeat  of  the  savages. 
Around  Rheims,  especially,  French  and  Italian  troops  have 
played  the  hero  this  week  to  good  effect. 

It  has  to  be  noted  that  the  Turk  has  intimated,  such  is  the 
report,   to  his  HohenzoHern   master    that  unless  financial  assist- 


ance is  promptly  accorded  he  must  throw  up  the  sponge.  That 
is  g(x:d  news,  and  should  herald  the  disappearance  of  the 
(Jsmanii  as  a  power  for  evil  on  earth.  As  for  financial  assist- 
ance, that  is  just  what  Germany  is  no  longer  able  to  give.  Her 
experts  in  the  chicane  of  finance  have  gorged  Turkey  withjflash 
paper  money,  and  made  a  pretence  of  giving  loans  which  have 
only  plunged  the  Turkish  Treasury  deeper  and  deeper  in 
bondage  to  Germany.  But  with  it  all  Germany  is  l)ecoming  so 
paper-smothered  herself  that  the  latest  sign  of  distress  is  found 
in  posters  displayed  everywhere  in  Germany  frantically  calling 
on  the  people  to  hand  in  their  gold  to  the  Reichsbank,  so  that 
it  may  be  used  to  strengthen  the  gold  reserve.  We  hope  the 
people  will  obey,  and  that  there  is  stilt  a  few  millions  of  undis- 
closed gold  available  in  Germany  because  it  will  all  be  wanted, 
and  twice  as  much,  to  pay  the  damages  inflicted  on  Northern 
France  and  on  Belgium  and  Serbia,  let  alone  many  other  places 
in  Russia  and  elsewhere,  devastated  by  the  HohenzoHern  fiends 
let   loose. 

Last  month's  returns  of  shipping  losses  published  this  Thurs- 
day morning  are  not  pleasant,  but  the  secretivene.ss  maintained 
is  now  so  pedant!.-;  that  we  cannot  tell  whether  the  224,735  tons 
of  British  .shipping  sunk  in  that  month  was  mostly  by  submarine 
or  the  consequence  of  what  a  note  calls  "  marine  risks."  The 
ugliest  thing,  however,  about  the  return  is  the  rise  in  Allied 
and  neutral  tonnage  sunk.  That  was  130,959  tons,  against  the 
exact  figure  of  85,348  tons  in  April.  When,  however,  we  com- 
pare these  recent  figures  with  the  amount  of  tonnage  entering 
and  clearing  United  Kingdom  ports  we  are  consoled,  for  the 
total  was  7,777,843  tons  last  month,  and  the  increase  737,534 
tons,  compared  with  the  April  figures.  Still  more  satisfactory 
is  the  contrast  between  this  year's  sinkings  and  last.  The  first 
quarter  of  1917,  for  example,  shows  1,361,870  tons  of  British 
shipping  sunk,  and  in  the  first  quarter  of  the  current  year  the 
sinkings  were  only  695. 4S2  tons,  a  decline  of  667,000  tons.  The 
total  of  all  shipping,  allied,  belligerent,  or  neutral,  sunk  in  the 
March  quarter  of  last  year  was  2.236,934  tons,  and  in  the  same 
quarter  of  this  year  it  was  only  1,140,800  tons.  In  the  two 
months  April  and  May  the  total  sinkings  last  year  were 
i,524,oo<i  tons,  and  this  year  they  have  only  amounted  to  but 
667,000   tons,    a    decline  of   857,000. 

We  are,  therefore,  distinctly  making  progress,  and 
the  only  unpleasant  side  of  the  display  is  in  the 
production  of  new  ships.  F"or  the  five  months  of  this 
year,  in  which  the  statistics  of  British  shipping  losses  alone 
have  reached  1,146,325  tons,  the  new  ships  actually  completed 
in  home  yards  in  the  same  period  represent  only  629,087  tons.  We 
are  therefore  517,238  tons  behindhand,  and  judging  by  what 
Lord  Pirrie  says,  it  will  be  some  time  yet  before  we  can  hope  to 
catch  up,  even  should  the  Prus.sian  depredations,  as  is  probable, 
continue  to  diminish.  For  in  his  capacity  as  Controller- 
General  of  Merchant  Shipping  Lord  Pirrie  has  issued  a  state- 
ment to  the  effect  that  while  national  shipyards  ar,e  "  splendid 
institutions,"  they  cannot  be  got  ready  for  turning  out  ships  in 
any  satisfactory  manner  until  completed.  "  I  am  assuming,"  he 
says,  "personal  responsibility  for  the  running  of  the  national 
.shipyards,  and  believe  thev  will  form  a  great  asset  to  the  nation 
and  a  means  of  substantially  increasing  the  output  of  merchant 
ships."  He  may  be  right;  it  remains  to  be  proved;  but  in  the 
meanwhile  he  explains  why  these  yards  cannot  at  present  give 
efficient  help,  and  the  explanation  does  not  exhilarate.  All  the 
more  remarkable  is  it  that  with  a  shortage  of  shipping,  not  only 
British,  but  foreign  and  neutral  also,  the  working  of  the  ocean 
traffic  should  have  been  .so  perfected  and  speeded  up  that  last 
month  738,000  tons  of  shipping  over  the  April  total  entered  and 
cleared  at  British  ports. 


THE    DIRECTORS    OF  • 

LLOYDS  BANK 
LIMITED 

desire    to    call    the    attention  of 

their     customers    and    others  to 

the    advisability   of   investing  all 

available  moneys  in 

NATIONAL 
WAR    BONDS 

and   of   applying    further   savings    in 
the  same  way. 

In  the  Savings  Bank  Department  small 
sums  can  be  accumulated  at  interest 
until  they  reach  the  minimum  required 
"       for  purchasing  WAR    BONDS. 


628 


^be  Jnveetors'  TReview. 


June  29,  1918. 


Super-Tax.— I 


Super-tax  was  introduced  in  1909,  but  since  then  it  has 
b^en  much  increased,  and  also  applied  to  smaller  incomes. 
Originally  it  hit  no  income  which  did  not  exceed  ;^3,ooo ;  even 
that  ;^3,ooo  was  free,  and  the  rate  was  6d.  per  £.  Now  it  hits 
all  incomes  over  ^^2,500.  Only  the  first  ;^2,ooo  goes  free,  and 
the  rate  rises  from  is.  to  4s.  6d.  per  £. 


Rates  of  Tax.                         '  '^J^-i?- 
'  1917-10. 

First  /2,ooo Free 

Next    ;f 500  to  ;^ 2, 500 Free 

iy^°       i3.o°o lod. 

;fi,ooo       ,64, 000 1/2 

£1,000       /s.ooo !  1/6 

£1,000        £6,000 '  l/io 

£1.000       £7,000 1  2/2 

£i,ooo       £8,000 2/6 

£1,000       £9,000 ^  2/10 

£1.000     £10,000 3/2 

Excess  over  £10,000  1  3/6 


1918-19. 


Free 

I/- 
1/6 

2/- 
2/6 

3/- 
3/6 
3/6 
4/- 
4/- 
4/6 


It  is  a  super  or  "over"  tax  in  three  senses,  for  (1)  it  is 
never  payable  unless  the  full  standard  rate  of  income-tax  is 
payable,  and  it  is  then  payable  over  and  above ;  (2)  it  is  never 
payable  unless  the  income  is  over  a  stated,  sum,  at  present 
L^,y>o\  and  (3)  even  then  it  is  payable  only  on  the  excess  of 
that  income  over  a  certain  lower  figure,  at  present  ^£2,000. 

CoMi'.\RisON  With  Income-tax. 

In  certain  ways  super-tax  resembles  income-tax,  in  others  it 
is  in  marked  contrast.  For  the  purpose  of  ascertaining  the 
amount  c£  income  the  rules  01  income-tax  generally  apply,  but 
even  here  there  are  differences.  When  we  proceed  to  the  calcula- 
tion of  the  tax  we  find  an  essential  difference.  As  regards 
income-tax,  when  the  income  reaches  a  figure  which  attracts 
a  certain  rate  of  tax,  that  rate  applies  to  the  whole  income 
down  to  the  first  £\,  subject  only  to  abatements,  if  any.  But 
it  is  otherwise  in  the  case  of  super-tax.  Assuming  a  total  in- 
come over  ;£2,50o,  you  go  back  only  to  jf2,ooo,  leaving  all  up 
to  that  point  untouched.  And  even  above  the  £2,000  the  excess 
income  is  divided  into  .successive  blocks,  each  bearing  its  own 
rate  of  super-tax  in  an  ascending  scale  till  the  maximum  of 
4s.  6d.  per  £  is  reached.  These  blocks  are  each  _£i,ooo,  except 
that  at  the  start  there  are  two  of  £500  each.  Thus,  take  an 
income  of  £4,000.  The  first  £2,000  is  immune  from  super- 
tax, and  it  may  be  well  to  make  it  clear  that  this  fir.st  /2,ooo 
is  free  though  the  total  income  is  £20,000  or  £100,000.  But  to 
return  to  the  £'4,000  case.  The  next  £500 — between  £'2,000 
and  £'2,500 — is  the  first  super-tax  block.  It  pays  is.  per  £. 
The  second  super-tax  block  is  also  £'500 — between  £'2,500  and 
£3,000.  It  pays  IS.  6d.  per  £.  The  third  is  £1 ,000— between 
£3,000  and  the  a.ssumed  income,  £'4,000.  That  £1,000  pays  2S. 
per  £,;  These  three  blocks,  and  all  higher  blocks,  are  each  self- 
contained,  paying  its  own  rate  of  super -tax,  and  having  nothing 
to  do  with  the  rate  chargeable  on  the  block  below  or  the  block 
above.  This  makes  the  calculation  of  the  total  amount  of 
super-t;>x  a  little  more  troublesome  than  income-tax  calculations. 

No  Earn-ed  Rate. 

Necessarily  there  is  no  distinction  between  earned  and  un- 
earned incomes.  Even  for  income-tax  that  distinction  does  not 
exist  unless  the  total  income  does  not  exceed  ;£2,5oo,  whereas 
super-tax  is  not  chargeable  at  all  unless  the  total  income  does 
e.xceed  that  figure. 

Individuals  Only. 

Super-tax  is  chargeable  only  on  individuals,  not  on  partnei- 
ships  and  not  on  companies.  As  regards  partnerships,  each 
partner  has  to  bring  into  hi.s  account  for  super-tax  his  full 
share  of  the  partnership  profits,  irrespective  of  whether  the 
profits  have  been  wholly  divided  or  whether  part  has  been  re- 
tained in  the  firm  undistributed.  The  only  difierence,  therefore, 
is  that  while  the  income-tax  assessment  is  imposed  on  the  firm, 
leaving  the  partners  to  arrange  the  incidence  of  the  payment 
among  themselves,  a  separate  and  individual  super-tax  assess- 
ment is  imposed  direct  upon  any  one  or  more  of  the  partners 
who  may  be  liable  for  that  additional  charge,  according  to  his 
total  income  from  all  sources,  including  his  share  of  the  firm's 
profits,  and  the  firm  has  no  concern  with  those  super-tax  assess- 
ments. 

The  position  is  materially  different  in  the  case  of  a  company 
registered  under  the  Companies  Acts,  even  though  it  be  a  "  one- 
man  "  company.  The  company  has  an  entirely  separate  legal 
existence,  and  the  "one  man's"  profits  from  the  company  for 
taxation  purposes  are  simply  what  he  draws,  whether  it  be 
director's  fees,  management  salary,  interest  on  debentures,  or 
dividends.  Of  course,  the  company  pays  income-tax  on  its 
whole  profits,  but  the  shareholder's  income  is  limited  to  what 
he  draws  or  is  entitled  to  draw,  and  does  not  include  any  share 
of  interest  the  company  has  earned  but  chooses  not  to  distribute. 
When  in  a  future  year  that  is  distributed,  it  may  then  count  as 
income,  but  that  is  another  matter.  Indeed,  these  undistributed 
orofits  may  never  go  to  pay  dividends,  for  they  may  instead 
be  carried  to  reserve,  and  thus  it  appears  that  by  proper 
procedure  the  reserve  may  be  capitalised  and  distributed  in  the 
form  of  further   shares  without  attracting  super-tax. 


Nom-Residints. 

The  individual*  who  may  be  liable  for  super-tax  arc  just 
those  who  may  be  liable  for  incwietax.  In  particular,  there 
is  no  exception  of  British  .subjects  non-resident  in  the  United 
Kingdom,  or  of  foreigners,  if  the  income  is  .such  as  attracts 
British  income-tax,  except  in  .so  far  as  there  is  an  exemption  from 
income  tax  also.  This  rule  was  arrived  at  only  after  an  appeal 
to  the  courts.  It  was  arrived  at  on  the  ground  that  super-tax 
is  simply  a  magnified  income-tax.  Yet  it  is  not  income-tax  for 
all  purposes.  Thus,  a  bequest  of  an  annuity  "  free  of  income- 
tax  "  leaves  the  annuitant  to  bear  super-tax  if  his  or  her  total 
income  is  such  as  to  attract  super-tax. 


American  Business  Notes. 


Considerable  .-ittention  is  being  devoted  by  United  States 
business  men  and  economists  to  the  c-iestion  of  the  nation's 
capacity  to  raise  the  means  to  pay  for  the  war.  This  subject 
involves  questions  relating  to  the  existence  and  limits  of  taxa- 
tion, and  whether  th«  Government  by  borrowing  too  freely  and 
abstaining  from  putting  the  costs  of  the  war  directly  on  the 
taxpayer,  is  producing  inflation.  An  address  on  this  subject 
was  recently  given  at  Princeton  University  by  Mr.  A.  Hepburn, 
chairman  of  the  Advisory  Board  of  the  Chase  National  Bank  of 
New  York,  in  which  he  discussed  some  of  the  dangers  attend- 
ing the  methods  of  financing  the  war.  What  is  the  income  of 
the  United  States  is  naturally  the  essential  question  .'1  correct 
answer  to  which  lies  at  the  foundation  of  any  judgment  as  to 
whether  the  country  is  being  overtaxed  or  not.  Apparently  the 
most  authoritative  estimate  is  that  the  surplus  income,  or  poten- 
tial .savings,  of  the  country  is  between  £2,400,000,000  and 
£3,000,000,000  a  year.  The  figure  looks  fabuk)us,  but  i^  not  a 
mere  guess.  It  is  arrived  at  by  careful  estimates  of  the  gross 
income  of  the  nation  based  on  certain  ascertained  and  other 
guessed-at  figures,  together  with  an  estimate  .M  the  amount  of 
the  spending. 

Another  authority  quoted  by  Mr..  Hepburn  is  Professor  Fri- 
day, who  estimates  the  total  excess  production  over  consump- 
tion in  the  Ignited  States  as  having  risen  between  1913  and 
igi-  from  £1,280,000,000  to  £3,700,000,000,  and  thf-  liquid 
.savings  available  for  investment  is  put  by  him  at 
[£'2,200,000,000  for  the  past  year,  as  compared  with  £560,000,000 
only  in  1913.  These  totals  indicate  that  war  expenditure  in 
itself  is  producing  an  immense  reservoir  of  surplus  means,  which 
may  be  available  for  investment,  and  so  it  is  in  large  part 
accounted  for  by  the  enormous  rise  in  prices.  That,  in  turn, 
is  the  fruit  of  unprecedented  credit  spending  by  the  Govern- 
ment. Dearness,  in  fact,  rather  spoils  the  exactness  of  the 
calculation  as  to  what  is  available  for  saving,  and  it  is  the 
opinion  of  the  essayist  that  individuals,  owing  to  this  dearness. 
have  probably  not  saved  any  larger  quantity  of  liquid  capital 
last  year  than  during  1916,  when  the  av.ailable  amount  is  gu«ssed 
by  Professor  Friday  at  £1,500,000,000.  This  is  not  a  margin 
large  enough  to  satisfy  the  demand  for  loans  foreshadowed  by 
Mr.   Mcj^doo. 

We  cannot  afford  space  to  go  into  the  details  cf  a  very  interest- 
ing discussion,  but  may  be  allowed  to  observe  that  all  these 
estimates  must  be  guesses,  more  or  less,  and.  aitter  all,  we 
must  not  forget  that  the  aggregate  earnings  of  a  nation  is,  to 
a  large  extent,  made  up  of  moneys  passing  from  hand  to  hand 
and  counted  several  times  over.  So  the  United  States,  as  also 
the  Governments  of  all  the  Allied  countries,  are  hampered  by 
the  restrictions  of  the  available  income  on  the  one  hand— 
which  may  be,  and  probably  is,  smaller  than  if  seems— and,  on 
the  other,  are  always  in  danger  of  bringing  about  a  solution  in 
the  continuity  of  credit,  so  to  say,  should  thev  lean  too  severely 
upon  the  moneylender.  "  I  think,"  says  Mr.  Hepburn,  "  as 
stifi  taxation  should  be  imposed  as  may  be  without  lessening 
the  activities  or  impairing  the  ability  of  the  people  to  pay  and 
subscribe,"  and  he  adds  that  "  taxation  will  be  cheerfullv 
borne."  but  wams  against  the  Congressional  idea,  which  Is  the 
popular  one  also,  that  the  United  States  is  a  country  of  un- 
limited we;ilth,  that  it  can  finnnce  other  nations  without  stint, 
and  annually  "  spend  billions  by  the  score,"  and  obtain  these 
vast  sums  at  will  every  year  by  t.ixation  and  by  borrowing.  It 
is  a  mischievous  idea,  but  it  is  one  that,  perforce,  treasurers 
ever3rwhere  are  driven  to  presume  upon.  And  in  proportion 
to  the  stimulus  of  unbridled  outlay  during  hostilities  will  be 
the  exhaustion  when  the  war  closes. 

Necessarily,  as  now  made  up,  the  summary  of  accounts  which 
set  forth  the  results  of  any  one  year  of  railway  working  in 
the  United  States  cannot  be  issued  very  soon  after  the  year 
closes.  It  is  the  middle  of  the  current  year  before  the  reports 
and  accounts  for  the  year  just  passed  are  issued  by  the  com- 
panies themselves,  and  it  therefore  need  cause  no  surprise  that 
the  compilations  for  which  the  Inter-State  Commerce  Commis- 
sion is  responsible  do  not  make  their  appearance  till  quite  a 
year  and  a-half  after  the  accounts  are  closed.  Accordingly  we 
have  preliminary  official  summaries  of  the  railway  statistics  for 
IQ16  only  now  making  their  appearance.  In  spite  of  their  be- 
latedness,  they  are  always  interesting,  and  we  may  summarise 
a  few  of  the  figures  here. 

At  the  end  of  1916  the  railways  had  a  length  of  254,045  miles, 
and  of  that  mileage  231,674  miles  were  entered  as  fir.st-class 
roads,  mostly  single  track.  That  is  to  say,  the  total  of  such 
roads  was  made  up  to  264.137  bv  second  trac'ics  (20.223  miles) 
and  yards,  &c.  tTpon  all  the  lines  63,738  steam  locomotives  were 
in   use,    and    2,342,699    freight  cars.     There   were   also    55,081 


JlNE    29,    1918. 


XTbe  Jnvestots'  IReview. 


629 


passenger  train  cars,  exclusive  o£  those  belonging  to  the  Pull- 
man Co.  Service  wagons  belonging  to  the  company  numbered 
an  additional  99,665.  These  roads  further  gave  work  to 
1,701,000  employees  at  the  end  of  the  year,  and  the  aggregate 
.paid  to  them  was  $1,507,000,000. 

The  capital  stock  of  the  roads,  including  the  funded  debt, 
was  $19,631,000,000,  but  the  amount  of  share  capital  actually 
outstanding  was  $8,755,404,000,  and  of  that  .stock  $3,325,280,000, 
or  37.98  per  cent.,  went  without  dividend.  The  stocks  on  which 
dividends  were  paid  received  an  average  of  6.75  per  cent.,  but 
the  average  on  the  whole  of  the  outstanding  stock  was  only 
4.19  per  cent.,  and  the  amount  paid  in  dividends  by  the  rail- 
ways and  the  "non-operating  "  companies  came  to  $366,561,000. 
The  gross  revenue  of  the  railways,  including  all  roads  whether 
of  the  first,  second,  or  third  class,  was  for  1916,  $3,589,951,000, 
and  the  expenses  amounted  to  $2,426,251,000.  The  nett  revenue 
Tvas,  therefore,  about  $1,265,000,000,  or  ^^253,000,000,  but  that 
was  reduced  by  taxes,  lost  revenue  written  off,  and  other  mis- 
cellaneous charges,  so  that  the  final  nett  income  from  the 
working  of  the  properties  was  only  $1,106,732,000.  This,  again, 
however,  was  raised  to  $1,385,786,000  by  sundry  other  receipts, 
and  after  meeting  rents  the  interest  on  the  funded  and  unfunded 
debt,  jind  other  charges,  there  was  $648,650,000  left  as  nett 
income.  These  are  bare  figures,  but  they  show  what  a  gigantic 
organisation  the  United  States  railway  system  has  now  become. 


Insurance    News. 


In  respect  of  new  business,  there  is  not  any  sign  as  yet  of  a 
return  to  the  figures  shown  before  the  war  by  the  University 
Life  Assurance  .Society,  an  ofiice  which  restricts  its  business 
to  a  select  class,  namely,  past  or  present  members  of  the  uni- 
versities, public  schools,  and  other  approved  educational  insti- 
tutions. In  the  five  years  ended  1915  the  society's  nett  annual 
amount  ot  new  business  assured  was  about  ;£i20,ooo;  it  has 
since  been  ^'44,000.  During  the  year  to  April  30  last  assurances 
were  completed  for  £4S'53^  nett.  The  really  interesting  feature 
of  the  report  is  the  claim  experience  of  the  year,  which  was 
distinctly  favourable,  notwithstanding  the  war.  The  total 
claims  (2'53.373)  were  actually  under  two-thirds  of  the  amount 
expected,  wliich  was  ^^80,154.  Excluding  claims  due  to  the 
war,  the  total  was  less  than  in  any  year  since  1895-6. 

A  very  handsome  bonus  is  announced  by  the  directors  of  the 
Motor  XJnion  Insurance  Co.  The  ordinary  capital  of  the  com- 
pany is  ;^ioo,ooo,  in  shares  of  ;^io  each,  of  which  ^3  a  share 
is  paid  up.  It  is  proposed  to  declare  a  bonus  of  £y  a 
share,  which  will  be  utilised  in  paying  up  in  full 
the  uncalled  •  liability.  The  £3  shares  which  were 
quoted  at  41  at  the  end  of  May  have  been  dealt  in  at  75  during 
the  past  few  days  Formed  only  12  years  ago,  the  company  has 
made  rapid  progress,  largely  as  a  result  of  good  management  and 
war  conditions.  In  addition  to  motor  accident  insurance,  fire, 
accident,  marine,  and  employers'  liability  business  is  now 
transacted.  For  the  past  year  the  premium  income  amounted 
■fo  ;^i>579>665,  while  interest,  &c.,  came  to  £33,104.  The  direc- 
tors are  of  opinion  that  not  only  are  the  reserves  adequate  for 
all  purposes,  but  that  when  the  risks  have  run  off  a  sub- 
stantial sum  will  become  due  for  excess  profits  duty.  The 
dividend  is  again  made  up  to  35  per  cent,  for  the  year,  and 
j{,"8o,ooo  is  put  to  various  reserves.  An  interest  in  the  United 
British   Insurance  Co.   has  been    acquired. 

-'^s  the  Consolidated  Assurance  Co.  in  1917  did  a  larger  and 
more  profitable  business,  the  dividend  has  been  raised  from 
6J4  per  cent,  to  10  per  cent,  for  the  year ;  the  amount  required 
for  this  dividend,  it  may  be  noted,  is  entirely  provided  for 
out  of  interest  earnings.  After  providing  for  the  usual  reserves, 
and  writing  off  .^30,238  organisation  expenses,  &-c.,  the  invest- 
ment reserve  has  been  increased  to  ;^3o,ooo.  Nett  premiums  in 
the  fire,  marine,  and  general  section  increased  by  ;^332,87o  to 
^772,605,  and  the  total  funds  have  been  rai-sed  by  jf  176,302  to 
;^'664,oio. 

With  the  exception  of  the  year  immediately  prior  to  the  war, 
the  biggest  nett  new  business  for  many  years  past  transacted  by  the 
Life  Association  of  Scotland  was  in  the  12  months  to  April  5 
last,  the  amount  retained  being  ^604,576,  exceeding  that  of  the 
previous  year  by  ;^  115,227.  The  rate  of  mortality  continued 
favourable,  notwithstanding  that  the  claims  by  death,  including 
bonuses,  included  ;^40,338  due  directly  to  the  war  out  of  the 
total  of  ;^363,26g.  An  increase  of  ;,f26,644  in  the  funds  raised 
the  total  to  ^^5,800,280.  Following  upon  the  yearly  valuation 
in  Class  A  (old  series),  the  directors  now  declare  cash  bonuses 
in  that  class  for  the  year  beginning  April  6,  1919,  to  be  applied 
in  part  payment  of  the  premiums  falling  due  in  that  year,  at 
the  same  rates  as  were  allocated  for  the  year  now  current.  A 
dividend  is  declared  at  the  same  rate  as  last  year,  namely, 
21S.  per  share,  less  tax,  payable  on  November  11,  under  deduc- 
tion of  the  interim  payment  made  on  May  15. 

An  increase  of  ;i^i  1,517  is  shown  in  the  total  premium  income 
•of  the  Gresham  Fire  and  Accident  Insurance  Society  for  1917, 
the  total  being  ;^i  53,840.  There  was  an  improvement  of  11 
per  cent,  in  the  fire  premium,  but  the  less  ratio  was  higher 
than  the  average  experience,  the  increase  being  due  to  the  fact 
that  the  company  had  some  risks  in  Salonika  by  way  of  re- 
insurance. Commission  and  e.'cpenses  show  a  reduction  together 
of  over  4  per  cent,  on  the  income,  a  distinctly  encouraging 
feature  of  the  fire  department.  The  premium  income  of  the 
accident  section  was  maintained,  notwithstanding  the  many 
restrictions  which  have  existed   in   the  sources  of  income  as   a 


result  of  the  war.  In  this  department  a  reduction  of  3  per 
cent,  was  effected  in  commission  and  expenses.  The  excess  of 
receipts  in  all  departments  over  expenditure  for  the  year  was 
.^11,902,  or  practically  the  same  as  in  the  previous  year,  and 
the  debit  balance  of  profit  and  loss  account  has  been  reduced 
from  ;£'2i,939  to  ;f  14,880. 


COMPANY    RESULTS    IN    BRIEF. 


Name  and 

Accounting 

Period. 


A.  J.  White (Mar. 

Do (Prev. 

Alliance  Tea  Co.    . .  (Dec. 

Do (Prev. 

Amalgamated  Tea  Estates 
(Nov.) 

Do (Prev.) 

Anglo  -  American     Direct 
Tea  Trading    . .  (Nov 

Do (Prev 

Eastern  Assam  ....  (Dec.) 

Do (Prev.) 

East    Surrey    Water    Co. 
(Mar.) 

Do (Prev. 

John  Bland  and  Co.  (May) 

Do (Prev.) 

Lancashire     Power     Con- 
struction Co.   ..(Mar) 

Do (Prev.) 

Leicester  Brewing  &  Malt- 
ing Co (May) 

Do (Prev.) 

Philip  Harris  and  Co. 

(Mar.) 

Do (Prev.) 

Rangoon   Electric    Tram- 
way &  Supply. .  (Dec.) 

Do (Prev.) 

Scottish  Assam  Tea  (Dec.) 

Do (Prev.) 

The  Mint,  B'ham  . .  (Mar.) 

Do (Prev.) 

United  Electric  Tramways 
of  Montevideo . .  (Mar) 

Do (Prev.) 

Wm.  Mowat  &  Sons  (May) 
Do (Prev.) 


Gross 
Profit. 


£ 
18,730 

17.150 
74,480 
76,660 

379.500 
349,820 

487,760 
426,300 
107,920 
122,080 

55.490 
54.730 


29.020 
19,200 


64,270 
65.830 
41,670 
35.070 
128,100 
145.560 

89,020 
110,000 


Nett 
Profit. 


118,640 
120,430 

123,680 
123,530 
77.950 
76.040 

22,300 
21,800 
11,990 
15,000 

10,570 
3.730 

23.850 
20,960 

4.940 
4.630 

21,660 
22,200 
11,670 
9.050 
34.370 
16,860 

27.370 

43.630 

4.740 

".550 


Total 
Re- 
serves. 


49,000 
49,000 

170,000 
150,000 


1,290 
1,180 


65,280 
10,030 

40,000 
30,600 

7,400 
7,400 


12,000 
10,000 
55.000 
40,000 


9,000 
8,000 


Divi- 
dend. 

'~%' 
5 

15 
15 

10 
10 

10 
10 
15 
174 

7 

7 

10 
12J 


10 

7 

6 
6 

3 
4 
8 
8 

25 
20' 


15 
15 


Carried 
For- 
ward. 


£ 
26,840 
34,220 

8,700 
a,6go 

83.850 
59.310 

54.940 
20,910 
36,670 
32.540 

11,970 
11,830 
".590 
10,600 

7.500 


21,370 

4,620 
2,150 

4.250 
2,900 
3.980 
3.090 
11,820 
12.540 

13.290 

12,810 

4,120 

10,000 


The  Week  in  Minos. 


Business  in  the  Mining  markets  has  broadened  out  somewhat 
this  week,  partly  under  the  stimulus  of  the  Italian  war  news, 
which  encouraged  some  professional  buying  of  shares.  The 
.South  African  dividend  announcements  occasioned  some  sur- 
prise, Brakpans  in  particular  falling  rather  sharply.  There 
has  been  a  distinct  revival  of  interest  in  Russian  shares,  on  the 
idea  that  Allied  intervention  in  Siberia  will  shortly  be  decided 
upon. 

South  .\nd  West  Africans. 

In  the  South  African  market  there  was  a  good  demaiid  for 
Xev,'  Modderfontein  on  the  declaration  of  a  "  record  "  dividend, 
and  the  .shares  rose  U  to  24.  Goerz  shares  also  came  into 
demand  on  the  announcement  that  the  company  has  bought 
347,802  enemy-held  shares  at  13s.  per  share,  which  will  be 
offered  for  sale  to  the  shareholders  at  the  same  price.  This  is 
fhe  first  sale  of  enemy-held  Rand  shares.  The  shares  rose  is.  6d. 
to  15s.  6d.,  partly  also  in  anticipation  of  a  change  of  name 
and  a  resumption  o{  dividend  payments.  City  Deeps  have  been 
firm  at  3^^ ;  at  the  meeting  at  Johannesburg  the  chairman  stated 
that  for  the  exploitation  of  the  southern  area  a  new  circular 
shaft  would  be  sunk  at  a  cost  of  ^239,000,  while  ^f  192,000  would 
be  required  for  permanent  equipment.     It  is  proposed  to  meet 


AUSTRALIAN 
MUTUAL  PROVIDENT 

Estd.  SOCIETY.  1S49. 

The    Largest    Mutual   Life    Office   in    the    Empire. 

Funds,  £38,000,000.  Annual  Income,  £5,000,000. 

MODERATE     PREMIUMS. 

LIBERAL     CONDITIONS. 

WORLD-WIDE     POLICIES. 
Every  Year  a  Bonus  Year.    Whole-life  Policies,  lo  years  in  force,  show 
average  increase  of  the  sum  assured  by   Bonus  exceeding  50  P"  "•"•• 
Endowment  Assurance  Results  also  Unslrpassed. 

37,Thpeadneedle  St.,  London,  E.C.  2. 


630 


Zbc  Jnveetocs'  IRevtew. 


June  29,  19 18. 


this  by  the  present  cash  in  hand,  £c)o,ooo,  and  the  balance  out 
of  profits  during  the  next  six  years.  It  will  probably  be  seven 
years  before  stoping  is  started  in  the  southern  section.  This 
news  caused  some  adverse  comment  in  the  market,  since  the 
expenditure  out  of  profits  will  be  equal  to  is.  per  share  per 
annum.  Central  Minings  have  risen  }i  to  6J^.  .Meyer  and 
Charlton  -jig  to  4f|,  Modder  Deeps  -fV  to  7i»«.  and  New  Albions 
IS.  gd.  to  js.  6d.  Brakpans  were  offered  on  the  reduction  in 
dividend,  and  are  15-32  lower  at  ii}i.  East  Rands  have  im- 
proved to  33.  6d.  It  is  pro|x)sed  to  wind  up  the  Rand  Klip  in 
order  to  distribute  the  Modderfontein  East  shares  among  the 
shareholders.  The  Treasury  will  not  allow  these  shares  to  be 
dealt  in  during  the  war,  but  the  Londcn  agents  will  offer 
facilities  for  sales  to  be  effected  in  South  Africa.  Among 
Rhodesian  shares,  Rezendes  have  fallen  %  U;  ^yi,  but  Shamvas 
have  improved  to  i  31-32.  In  the  Diamond  section,  De  Beers 
deferreds  have  fallen  }i  to  14}^.  West  Africans  show  little 
alteration. 

Copper  and  Miscellaneous. 

Copper  shares  have  met  with  some  support,  notably  Mount 
Lyell  at  aos.  6d.  and  Arizonas  at  2%.  Tin  shares  have  moved 
irregularly.  Siamese  at  31^  and  Tronohs  at  2%  are  both  >i 
higher,  but  Dolcoaths  have  fallen  i.s.  to  los.  6d.  and  Geevors 
od.  to  22s.  6d.  Russians  have  been  particularly  firm.  Russo- 
Asiatics  are  }i  higher  at  2^,  and  Ky.shtims  have  risen  J6  to 
ii^.  Fresh  buying  has  lifted  Camp  Birds  up  to  12s.  gd.  again. 
Mysores  have  declined  to  2-^g  on  news  of  a  rock  burst,  rendering 
ig  stopes  inaccessible.  The  output  for  J'jne  will  not  exceed 
23,000  tons  of  ore.  Kanbauk  Wolframs,  however,  have  been 
in  good  demand,  and  a  -  3s.  3d.  higher  r\t  35s.   3d 


MINING  NEWS. 


Great  Bovlber  Proprietarv.— The  report  for  igi-  does  not 
make  a  very  satisfactory  impression,  despite  the  fact  that  the 
output  of  gold  rose  from  ,^523,481  to  ;^529,7iS.  There  were 
treated  i,S2.265  tons  for  ;^532,646,  as  against  175,787  tons  for 
|[^523,4Si  in  1916,  the  average  of  the  ore  treated  lieing  13.78 
dwts.,  against  13.83  dwts.  per  ton.  The  cost  of  working,  how- 
ever, rose  another  lod.  to  28s.  8d.  per  ton,  ,nnd  couvsequently 
the  profit  was  £",$13  less  at  £2^:3,026.  Australian  taxes  ab- 
sorbed' ;£23,i75  against  ^15,409,  and  in  older  to  maintain  the 
dividend  at  3s.  per  shaie,  ;/^3o,ooo,  as  against  ;^io,ooo,  has  to 
be  taken  from  reserve,  while  the  balance  carried  forward  is 
reduced  from  ^5,488  to  ^^2,838.  Re.serves  of  ore  am  estimated 
at   387.511    tona,    valued   at    .^1,175,000,    ,ngainst    439,677    tons, 


New  Zealand. 


A  Vealthy  Country,  Splendid  Climate,  Fertile 
Soil,  Plenty  of  Water. 

An  Ideal  Country  for  the  farmer,  the  percentage  of 
grain  and  lambs  being  phenomenally  high. 
New  Zealand,  a  country  as  large  as  the  United 
Kingdom,  with  but  a  million  population,  has  an 
annual  export  of  raw  products  exceeding  Twenty 
Million  Pounds  sterling. 

New  Zealand  is  rich  In  COAL,  IBON.  TIMBER, 
GUM,  GOLD  AND  SILVER.  Total  yield  ol  Minerals, 
over  One  Hundred  and  Twenty  Million  Pounds. 

Over  Eighteen  Million  Pounds  have  been  advanced 
by Govemmentto Farmers  and  Workers  for  Improve- 
ments and  Buildings  at  a  low  rate  of  interest. 

The  Railways,  3,000  miles.  Telegraphs  and 
Telephones,  124,000  miles,  are  owned  and  operated 
by  the  State.  ' 

New  Zealand  has  the  highest  wealth-rate  and  the 
lowest  death-rate  in  the  World. 
To  those  desirous  of  making  a  home  in  a  new 
country.  New  Zealand  offers  solid  advantages. 
Excellent  Steaniship  Services  are  run  direct  to  New 
Zealand  by  the  Shaw  Savill  and  Albion  Com- 
pany, Limited,  New  Zealand  Shipping  Company, 
Limited,  and  the  Federal  and  Shire  Lines. 


Full  information  is  supplied  ftee  by 

THE  HIGH  COMMISSIONER  FOR  NEW  ZEALAND. 

413-416,  STRAND,  W.C  2. 


valued  at  .£1,370,000,  at  the  close  of  191O.  It  is  staled  that 
there  is  no  reason  to  expect  a  greater  tonnage  to  be  treated 
in  191S,  and  that  the  value  p>:r  ton  should  not  materially  alter. 
On  the  other  hand,  costs  will  probably  be  higher  again. 

St.  JOHN  DEL  Rev. — There  were  crushed  during  the  year  to 
February  28,  180,300  tons  for  ;f 466. 805  of  gold,  or  sis.  gd.  per 
ton.  The  tonnage  treated  was  6,700  tons  less,  but  the  yield 
was  IS.  5id.  per  ton  higher.  In  addition  to  gold  there  was 
recovered  £3,^30  of  silver.  The  profit  was  ;?•  53,679,  a  de- 
crease of  only  /'i,9i4,  and  the  dividend  is  maintained  at  10 
per  cent,  by  a  final  payment  of  is.  3d.  per  share.  Reserve 
again  gels  ^10,000,  but  the  appropriation  to  the  capital  works 
account  is  reduced  from  ^£50,000  to  ;£ 30,000,  and  thu«  the 
carry  forward  is  raised  from  £A.oi7  to  ;(f2i,i35.  It  is  stated 
th;it  the  reserves  of  ore  actually  standing  in  the  several  blocks 
from  horizon  16  down  to  horizon  21,  if  estimated  on  the  .iver- 
agfc  tonnage  per  vertical  foot  tor  the  past  three  years,  represent 
over  stven  years'  working  ;it  full  output. 

Transvaal  Consolidated  Lank  ami  Exploration.— The 
report  for  I9t7  states  that  the  profit  on  property  sales  was 
',;^ii.2i5.  nett  revenue  from  real  estate  /.7,027,  interest  ;£i8,255, 
dividends  on  sliare  investments.  /1.557;  mineral  royalties, 
_^3,9g4 ;  profit  on  Croenfontein  Mine.  .1^2,547,  making  a  total 
of  /45,4g6.  Expenditure,  including  ;^3.S45  for  prospecting  and 
;/^'i,20i  for  depreciation,  absorbed  ^it,86o.  Thu.s  the  profit  was 
^33,636,  and  the  credit  balance  carried  forward  is  raised  from 
1^176,664  to  ^205,676. 

Siberian  1'roprietarv  Mines. — The  report  for  1917  shows 
a  profit  of  ^^1,823  against  ;^io,643.  After  writing  ;^io,897  off 
ior  investment  depreciation,  the  debit  carried  forward  is  raised 
by  ;f9,074  to  ;f52,397. 

Jupiter. -During  igi/  this  comjiany  crushed  286,goo  tons 
for  £306. ^(x)  of  gold,  or  21s.  4d.  'per  ton,  as  compared  with 
26g,goo  tons  for  ^298,292,  or  22s.  id.  per  [on.  Costs  rose  3d.  to 
19s.  4d.  per  ton,  and  consequently  the  profit  rate  dropped  from 
3s.  to  13.  iijd.  per  ton.  rh«  working  profit  was  £28,3^2- 
against  ^40,661.  The  nett  profit  was  /28,343,  but  a  profit  of 
(£22.419  was  made  on  sales  of  investments  and  sundry  revenue 
receipts,  making  a  total  of  ;/,'5o.762.  Spcrial  expenditure  and 
sundry  amounts  written  off  absorbed  ^6.279,  leaving  ;C44.483 
again.st  ^^51.312.  The  dividend  has  been  reduced  from  8J  per 
cent,  to  ji  per  cent.  Capital  expenditure  ibsorbs  ;C5!203,  and 
.sales  of  plant  £26.363,  leaving  £Si7.c>2y.  against  /92,45o.  to 
be  carried  forward.  Reserves  of  ore  amount  to  787,000  tons  at 
the  Howard  shaft  section,  an  increase  of  9i,oo<:)  tons,  the  value 
being  5.27  dwt9. 

Tronoh  South. — In  1917  this  company  produced  265  tons  of 
tin  ore,  which  realised  .£30,334,  as  compared  with  ;£302  tons 
for  £30,921  in  1916.  The  yield  is  equal  to  £\Ji  7«'''  psr  ton,  an 
increase  of  £24  gs.  lod.  per  ton.  After  providing  for  deprecia- 
tion, the  nett  profit  comes  out  at  .£g..738  against  £A'47^>-  Two 
dividends  of  6d,  per  share  each  have  been  paid,  ;£5.ooo  has  • 
been  written  off  in  respect  of  general  and  development  expendi- 
ture account,  and  ;£2,55o  against  £^2,813  is  carried  forward. 
for  1916  onl)-  6d.  per  share  was  paid. 

Idris  Hydraulic  Tin. — The  output  in  1917  decreased  from 
26gi  tons  to  213^  tons,  which  yielded  £26,860;  equal  to  £125 
17.S.  gd.  per  ton  against  ;fi04  los.  iid.  per  ton  in  1916  Nett 
profit  was  £'6,623  against  /.7,354.  Two  dividend.s  of  6d.  per 
share  have  been  paid,  the  same  as  for  1916,  and  ;£3,i48,  against 
£■2,524,  is  carried  forward.  The  decline  in  output  was  due  to 
the  rearrangement  of  the  various  gravel  pump?;,  as  the  working 
face  was  getting  too  far  away  from   the  elevating  plant. 

Tronoh  Mines. — During  1917  there  were  sold  1,044  tons  of 
tin  ore  as  against  1,647  tons,  and  the  amoupt  real'sed  declined 
■from  £^174,895  to  ;£i34,332.  the  value  per  ton  being  /?22  gs.  7d. 
higher  at  £128  13s.  4d.  The  decrease  in  output  was  expected, 
owing  to  the  exhaustion  of  the  .sr/uth  lombong,  and  there  has 
been  a  large  decrease  in  the  production  from  the  sand  shafts 
worked  on  tribute.  On  the  other  hand,  working  costs  have 
been  much  reduced.  The  total  profit  was  £51,0(7,  an  increase 
f^f  £4".<'79-  After  writing  j£8,283  off  properly  account,  it  is 
proposed  to  pay  a  final  dividend  of  is.  per  share,  making  ay 
per  cent,  for  the  year,  against  20  per  cent.,  and  to  carry  ;£23,393 
against  ;£2o,629  forward.  It  is  expected  that  this  j-ear's  out- 
put will  not  decrease  appreciably  below  the  1917  level. 

Sons  of  Gwalia. — Practically  the  same  amount  of  gold  was 
produced  bj-  this  company  in  1917  as  in  1916.  There  w-'e 
tieated  159,397  tons,  which  realised  /^232,55o.  Working  t.v- 
penses.  however,  rose  from  21s.  gd.  to  23s.  8d.  per  ton,  the  in- 
crease l)eing  due  to  the  higher  cost  of  stores,  wages,  Sc.  The 
accounts  show  a  nett  profit  of  ;£37,433,  as  compared  with 
/39.8Q0.  Dividends  amounting  to  ;£32.5oo  were  paid  during 
the  year,  or  2s.  per  share,  as  against  2s.  6d.  distributed  for 
1016.  and  £^15,659  is  written  off  for  depreciation  against  ;£9,o87. 
and  £'4,252  against  ;£740  is  carried  forward.  Development 
operations  for  the  year  were  not  so  productive  in  the  blocking- 
out  of  new  ore  as  in  the  preceding  periods,  but  the  ore  reserves 
.It  the  close  of  the  year  represented  three  year-;  and  eight 
months'  supply  for  the  mill. 


A  recent  census  of  the  European  population  of  South  Africa 
gives  : — Cape  Province,  580.771,  an  increase  of  35.103  compared 
with  igii;  \atal.  120,465.  an  increase  of  22.619:  Transvaal. 
4g7,236,  an  increase  of  77,352 ;  Orange  Free  State.  iSi  ,202.  an 
increase  of  6.469.  Total  for  the  T'nion,  including  travellers. 
1,418,060.  an    increase  of   141,818. 


JiNi;  29,  191S. 


Zbc  investors'  1Review7 


631 


PUBLIC     INCOME     AND    EXPENDITURE. 

The  following  are   fbe  receipts  into   and   issues  out     of    the 
Exchequer  between  April  1,  191S,  and  June  22,  1918; — 


Estimate       |  "^"'i J^T.'"" 
vVar  lExchequerfroin 

''*"  April  I,  1918,  to 


igiS-1919. 


i  June  22,  1918. 


Total  Receipts 

into  the 
Bxchequer  from 
April  I,  1917,  to 

June  23,  1917. 


'Valances  in  £zchei]iier  on 
April  J— Bank  of  England  . . 
Bank  of  Ireland    ..'• 


Revenue. 

Customs  

'Excise  

Estate,  &c.,  Duties 

Stamps 

Land  Tax 

House  Duty    

Property  and  Income  Tax  and 

SuperTax   

Excess  Profits  Duties, 'ftc. 

Land  Value  Duties 

Post  Office  

Crown  Lands 

Receipts    froir.    Simdry 

Loais,  &c 

Miscellatieous 


£ 
J9,36i,5?8 
1,668,452 


21,030,030 


20,899,000 
10,213,000 
6,909,000 
1 ,682,000 

«75.ooo 


24,833,000 

57,794,000 

151,000 

€,450.000 

IJ0,O0O 

14,847 

12,420,221 


£ 

a5,209.947 
1,225,912 


26,435.859 


16,503,000 
8,832,00c 
7,957,000 
1,412,000 

300,000 


21,774,000 

38,227,000 

146,000 

6,200,000 
90,000 

9.453 
1,827,903 


Revenue 
Total 


141,761,068 


103,278.356 


Other  Receipts. 

Repayment  of  Advances  for  Bullion   

For  Treasury  Bills  (tor  supply)    

For  5  per  Cent.  Exchequer  Bonds,  1922  

For  3  per  Cent.  Exchequer  Bonds,  1930    .... 

For  Wat  Savings  Certificates 

For  other  Debt  (War  Loan  Acts,  1914-1917)  . . 
For4  per  Cent.  War  Loan,  1929-1942.  and  5  perl 

Cent.  War  Loan,  1929-1947    

For  National  War  Bonds    

Temporary  Advances— Ways  and  Means 


ToUI. 


162,791,098 

129.714,215 

1,490,000 
935,385,000 

803,600 

22,500.000 
133,156,061 

610,000 
425,065.000 
42.710,000 

9,2  30,000 
109,190,879 

*n5,468.ooo 

lS0.(,28,140 

161,100,000 
183,605.000 

1, 6v. 62-', 199 

1.061.195,094 

tExcluding  sales  through  joint  stock  and  private  bank  -  not  yetbrought  to  account. 


ExrENDITURE 
AND  OTHER   ISSUES. 


Estimate  foe 
the  Year 


I  Totiil  Issues  I  Total  Issues 
|0ut  ol  the  Ex-  put  of  the  fix* 
(Chequer  to  meet  ichequer  to  meet 
payments  fromtpayments  from 
'April  i.i9iS,tc  lApril  17  1917.  to 
I  June  22,  :oiS.    ;  June23, 1917. 


Expenditure, 
Permanent  Charge  of  Debt  . . 
Interest,  &c.,  on  War  Debt . . 
Payments  to  Local  Taxationj 

Accounts.  &c 

Other      Consolidated      Fund 

Services    

Supply  Services    


Expenditure 


r 

3,819,471 

86,584,854 

462.205 

356,040 
570,124,900 


£ 
4,104,606 
52,695,797 

402,146 

32',534 
525,680,300 


661.347.470  5^3,263,883 


Other  Issues.  I 

For  Advances  for  Bullion  : 

For  Advances   for    Interest    on    Exchequer] 

Bonds     under    the    Capital '  Expenditure 

(Money)  Act,  1904    

Under  Telegraph  (Money)  Act,  1913 

Under  Post  Office  (London)  Railway  Act.  1913 

Under  Housing  Act.  1914 

For  Treasury  Bills  for  Supply 

For  War  Loans.  Exchequer  Bonds.  &c.. under 

Section  34  of  Finance  Act,  1917  

.For  War  Expenditure  Certificates  under  War 

Loan  Act,  191G    

For  other  Debt  under  the  War  Loan  Acts, 

igu  to  1917 '. 

For  Depreciation  Fund  under    the   Finance 

Act,  tgi7  

Old    Sinking    Fund.    1910-11.    issued    under 

the  Finance  Act.  1911,  Section  16  (i)  (b)  .. 
Temporary  Advances  repaid— Ways  and  Means 


1918.     ;     1917. 
June  22,      June  23. 
Balances  in  Exchequer—  £       '.       £ 

Bank  of  England ]  11,653,882,  22,956,844 

Bank  of  Ireland {    1.272,570'    1.345.415 

Total 


t849. 
It, 

tc. 

15 


84,909 

15,000 

12,000 

106,300 

,758,000 

152,040 

380,100 

349.883 

'',■'715,045 

20,000 
(-6  f  .0,000 

r.0iB(i.:j5.747 


i;,y26,452 


1,631,622,199 


84,909 
30,000 

175,400 
245.729,000 


203,500,000 


1,036,892,835 


24,3<'2,259 


1,061.195,094 


Uemo.— Treasury  Bills  outstanding  on  June  22, 1918 "f  1,058,430,000. 

*  Includes  £221,000,  the  proceeds  of  which  were  not  carried  to  the  Exchequer 
within  the  period  of  the  account,  besides  a  part  (not  yet  ascertained  and 
brought  to  account)  of  the  Bills  tendered  as  subscriptions  to  National  War  tionds. 

t  Includes  part  payment  of  Bills  and  Certificates  tendered  as  subscriptions 
to  National  War  Bonds 


The  London  County  Council  has   published  its  tramway  esti- 

ma-es  for    iqiiS-ig.      These   put  the  receipts   at    ^3, 321, 750   and 

the  expenses  at  ;f2,593,i4o.     This  shows   a  surplus  of  ^'728,610, 

and,  after  adding   interest  and   sundry   rents,    there  is  a   total 

vnticipated    free    balance   of    ;f75i,889.         I'rora    this    charges 

■nounling  to  /.'739.7-4  will  have  to  be  deducted,  including  a 

t  esti-r.ated  surplus  for  the  current  year  of  ;^i2.ii5,  but  the 

plates  are  to  be  put  back  for  revision,  and  the  higher  fares 

imposed    ought   to   help   the   heavier   traffic    10   make   the 

^°.  .larger. 


NOTICES.!!  H?ITTOOB 


JOHANNESBURG    CONSOLIDATED    INVESTMENT    COMPANY. 
LIMITED. 

(Incorporated  in  the  Transvaal.) 

NOTICE  IS  HEREBY  GIVEN  that  the  Directors  have 
DECL.\RED  a  DIVIDEND  of  5  per  cent.,  free  of  Income 
Tax.  for  the  financial  year  ending  30th  June.  1918,  payable 
to  all  shareholders  registered  at  that   date. 

The  Transfer  Books  of  the  Company  will  be  Closed  from  the 
1st  July  to  the    10th    July,    1918,    both    days   inclusi\e. 

The  Dividend  Warrants  will  be  posted  about  the  end  of 
September. 

By  Order  of  the  Board.  Johannesburg  Consolidated  Investment 
Company.  Ltd.  T.  Honf,v,  Secretary. 

10  and  11.  Austin  Friars.  London.  E.C.2,  22nd  June.  1918. 

VAN   RYN  DEEP,    LIMITED. 

(Incorporated  in  the  Transvaal.) 

NOTICE  IS  HEREBY  GIVEN  that  an  INTERIM  DIVIDEND 
of  22J  per  cent.  (4s.  6d.  per  share)  has  been  DECL.\RED  for  the 
half-year  ending  30th  June.  1918.  payable  to  all  shareholders 
registered  at  that  date. 

Tl>e  Transfer  Books  will  be  Closed  from  the  1st  July  to  the 
10th  July.  1918.  both  days  inclusive. 

The  Dividend  Warrants  will  be  posted  to  shareholders  as  early 
in  August  as  possible. 

By  Order,  Johannesburg  Consolidated  Investment  Company, 
Ltd..  Londoii  Agents.  T.  HoNEV.  Secretary. 

10  and  11,  Austin  Friars,  London.  E.C.2,  22nd  June,  1918. 

GOVERNMENT    GOLD    MINING    AREAS    (MODDERFONTEIN) 
CONSOLIDATED,  LIMITED. 

(Incorporated  in  the  Transvaal.) 

NOTICE  IS  HEREBY  GIVEN  that  an  INTERIM  DIVIDEND 
of  I2J  per  cent.  (2s.  6d.  per  share)  has  been  DECLARED  for 
the  half-year  ending  30th  June.  1918,  payable  to  all  shareholders 
registered  at  that  date.  The  Transfer  Books  will  be  Closed  from 
the  1st  July  to  the  10th  July.  1918,  both  days  inclusive. 

Tlie  Dividend  Warrants  will  be  posted  to  shareholders  as  early 
in  August  as  possible. 

By  Order,  Johannesburg  Consolidated  Investment  Company, 
Ltd.,  London  Agents.  T.  Honf.y,  Secretary. 

10  and  11,  Austin  Friars,  London,  E.C.2,  22nd  June,   1918. 

WITWATERSRAND  GOLD  MINING  COMPANY,  LIMITED. 

(Incorporated  in  the  Transvaal.) 

NOTICE  IS  HEREBY  GIVEN  that  an  INTERIM  DIVI- 
DEND of  10  per  cent.  (2s.  per  share)  has  been  DECLARED  for 
the  half-year  ending  30tli  June.  1918.  payable  to  all  shareholders 
registered  at  that  date. 

THE  TI^ANSFER  BOOKS  will  be  closed  from  the  1st  July 
to  the  10th  July.  1918,  both  days  inclusive. 

The  Dividend  Warrants  will  be  posted  to  shareholders  as  early 
in  August  as  possible.  ^ 

By  Order,  Johannesburg  Consolidated  Investment  Company, 
Ltd.,  London  Agents.  T.   HoNEV,   Secretary. 

10  and  11.  .\ustin  Friars.  London.  E.C.2.  22nd  June.  1918. 

NEW  UNIFIED  MAIN  REEF  GOLD  MINING  COMPANY,  LIMITED. 

(Incorporated  in  the  Transvaal.) 

NOTICE  IS  HEREBY  GIVEN  that  an  INTERIM  DIVI- 
DEND of  5  per  cent.  (Is.  per  share)  has  been  DECLARED 
for  the  half-year  ending  30th  June,  1918,  payable  to  all  share- 
holders registered  at  that  date. 

THE  TRANSFER  BOOKS  will  be  closed  from  the  1st  July 
to  the  10th  July.  1918,  both  days  inclusive. 

The  Dividend  Warrants  will  be  posted  to  shareholders  as  early 
in  August  as  possible. 

By   Order,   Johannesburj 
Ltd.,  London  Agents. 

10  and  11,  Austin  Friars,  London.  E.C.2. .  22nd  June,  1918. 

LANGLAAGTE  ESTATE  AND  GOLD  MINING  COMPANY,  LIMITED. 

(Incorporated  in  the  Transvaal.) 

NOTICE  IS  HEREBY  GIVEN  that  an  INTERIM  DIVIDEND 
of  5  per  cent.  (Is.  per  share)  has  been  DECLARED  for  the 
half-year  ending  30th  June,  1918,  payable  to  all  shareholders 
registered  at  that  date. 

The  Transfer  Books  will  be  Closed  from  1st  July  to  the 
10th  July,  1918,  both  days  inclusive. 

The  Dividend  Warrants  will  be  posted  to  shareholders  as  early 
in  August  as  possible. 

By  Order.  Johannesburg  Consolidated  Investment  Company, 
Ltd.,  London  Agents.  T.  HoNEV,  Secretary. 

10  and  11,  Austin  Friars,  London.  E.C.2.  22nd  June,  1918. 


Consolidated   Investment  Company, 
T.  HoNEV,  Secretary. 


632 


TLbc  Jnvestors'  "Review. 


June  29,  1918. 


SCOniSH  UNION  &  NATIONAL 

mSIIRlNCE  GOIPANr. 

ESTABIjISHED    1824. 

ASSETS    exceed    £11,000,000. 

FIRE  (INOLUDINC  LOSS  OF  PROFITS),  LIFE,  ACCIDENT,  IUNE8S,  ANKUITIES, 
PENSIONS,  LEASEHOLD,  BURGLARY,  CLASS  BREAKACE,  TRANSIT  OF 
SUURITIES,  FIDELITY,  PROPERTY  OWNERS'  LIABILITIES,  HORSE  DRIVING 
AOCIDINTS,  MOTOR  CAR  RISKS,  THIRD  PARTY,  EMPLOYERS'  LIABILITY  AND 
MARINE  INSURANCES  EFFECTED  ON  THE  MOST  FAVOURABLE  TERMS. 

Edinburgh;  3S,  St.  Andrew  Square. 
London :  S,  Walbrook,  E.C.  4,  and  4,  St.  James'  St.,  8.W.  1. 


ASSURANCE   COMPANY 
LIMITID. 

ESTAIII.ISHED   1782. 

Hnd  Office:  PHOENIX  HOUSE,  KING  WILLIAM  STREET,  LONDON,  E.C.  4. 
Total  Assets  Exceed  ex9,O0O,00O. 
Claims  Paid  Exceed  £XOO,000,000. 

Chairman— Rt.  Hoh.  LORD  GEORGE  HAMILTON,  P.C,  G.C.S.I 

FIRE.  LIFE.  ACCIDENT.  MARINE. 

LoM  of  Profits  following  Fira,  Worlcmen's  Compensation,  Fidelity  Guaramae, 
Burglanr,  Trustee  and  Executor,  &c. 
Proapectuses  and  Proposal  Forms  may  be  obtainad  on  application  to  any  of 
the  Branch  Offices  or  Aeenoits,  or  to  the  Head  Officas 

General  ^lanager  SIR  GERALD  H.  RYAN. 


tTbe  investors'  1Rev>iew. 


Money    and   Credit   Notes. 


Bank  Rate  5  per  Cent.   (Reduced  from  5 J  percent,  on 
Thursday,  April  5,  1917.) 


Norfolk  House,  Friday  Evening. 

A  week  ago  day-to-da}'  money  was  quite  cheap,  but  as  the 
end  of  the  quarter  drew  nearer  balances  dried  up,  and  for  the 
last  two  or  three  days  call  loans  have  tended  to  be  quite  as  dear 
as  seven-day  loans.  That  is  to  say,  both  classes  of  advances 
were  quoted  at  ji  per  cent.,  and  by  midweek  the  demand  was 
keen  enough  to  drive  borrowers  in  moderation  to  the  Bank, 
which  lent  for  seven  days  at  4  per  cent.  Even  discount  rates 
were  slightly  affected,  and  bills  of  all  usances  were  sometimes 
quoted  at  ts  al»ve  3J  per  cent.  Probably  the  market  will  fall 
away  again  directly  the  bank  balance-sheets  have  been  adjusted 
and  the  locked-up  balances  released.  To  enable  the  banks  to 
strike  these  balances,  notwithstanding  their  depleted  staffs, 
Monday  next  has  been  declared  a  Bank,  not  a  general,  holiday. 

The  Bank  return  showed  the  effects  of  financial  adjustments 
at  the  end  of  the  half-year  as  well  as  the  pressure  of  Govern- 
ment requirements,  other  securities  having  increased  by 
;^5>749i<5oo.  Of  the  money  thus  obtained  ^3,662,000  has  gone 
on  to  other  deposits,  and  /"2,o98,ooo  has  been  utilised  to  pay  off 
Government  s^urities.  The  reserve  is  do«n  jT 268,000,  but  that 
is  only  an  insignificant  consequence  of  large  movements  of  cur- 
rency. The  note  circulation  has  risen  ;^  1,290,000,  and  the  coin 
and  bullion  is  also  ;f  1,022,000  up,  hence  the  decline  in  the 
reserve,  whose  proportion  'to  the  liabilities  has  shrunk  i  per 
cent,  to  i8i  per  cent. 

For  some  time  past  another  New  South  Wales  Loan  has  been 
regarded  as  imminent,  and  it  now  makes  its  appearance.  Tt 
takes  the  form  of  debentures  carrying  5J  per  cent,  interest,  con- 
vertible into  inscribed  stock,  and  offered  at  par.  The  debentures 
are  repayable  at  par  in  1932,  but  the  Government  reserves  the 
right  to  redeem  on  three  months'  notice  from  1922  onwards. 
They  are  issued  in  connection  with  the  outstanding  balance  of 
the  3J  per  cent,  inscribed  stock,  which  matures  for  payment  on 
September  i  next,  and  holders  are  invited  to  convert  into  the 
new  debentures  on  the  same  terms  as  offered  under  the  first 
issue  made  last  February,  that  is  to  say  they  wilK  receive 
£1  12s.  5d.  per  cent,  in  cash.  An  interes^^payment  of  £1  as. 
per  cent,  will  be  made  on  November  1.  Holders  exercising  the 
option  to  convert  will  receive  preferential  allotment,  and  we 
should  not  think  there  would  be  much  left  over  for  cash  sub- 
scriptions. 

An  estimate  of  the  paper  money  in  circulation  in  Russia  puts 
it  at  between  43,000,000,000  roubles  and  44,000,000,000.  'That 
would  be  nominally  between  ^^4,300,000,000  and  ;£4,4oo,ooo,ooo, 
but  it  must  be  a  mere  guess,  for  the  means  of  arriving  at  the 
quantity  of  paper  money  of  all  kinds  circulating  in  Russia 
must  be  even  more  scanty  than  in  Germany,  where  paper 
money  uncountable  and  unacknowledged  has  been  brought  into 
existence  since  William  the  Wicked  let  loose  his  savages  on 
the  world. 

With  reference  to  the  impending  payment  of  arrears  of  in- 
terest on  the  Port  of  Para  Bonds,  amounting  to  over  a  million 
and  a  quarter  sterling,  it  is  learned  that  the  actual  amount 
received,    by    the   way,    from   the   Brazilian   Government    is  36 


million  francs  in  cash  and  16,500,000  francs  in  Brazili.-m  5  per 
cent.  Funding  Bonds,  1914.  The  company  is  also  to  receive 
at  the  end  of  next  month  nearly  6J  million  francs  to  complete 
the  payment  of  the  Government  guarantee  down  to  the  end  of 
1917.  The  total  amount  required  to  meet  interest  and  sinkin|^ 
fund  on  the  bonds  from  July,  1914,  to  July,  1918,  is  approxi. 
mately  40  million  francs. 

Another  indication  of  the  improvement  in  the  Mexican  eco- 
nomic situation  is  forthcoming  in  the  announceinent  that  the 
Guanajuato  Power  Co.,  the  Michoacon  Power  Co.,  and  the 
Central  Mexico  Light  and  Power  Co.  will  pay  another  of  the 
overdue  coupons  on  July  i.  Last  December  the  first  were  paid, 
and  next  Monday's  payment  will  bring  the  arrears  down  to 
Octobei  1,  1916,  as  regards  the  Guanajuato  Co.,  and  down  to- 
July  I,  1916,  in  the  case  of  the  other  two  companies.  The 
amount  to  be  paid  on  the  coupon  from  each  $1,000  bond  will 
be  as  follows  :  — The  Guanajuato  coupon  #34.05,  the  ItUchoa* 
con  coupon  $34.50,  and  the  Central  Mexico  coupon  $34.50. 
The  placing  of  Mexican  currency  on  a  metallic  basis — paper 
money  being  now  no  longer  legal  tender — is  the  cause  of  the 
companies  being  in  a  position  to  pay  these  coupons,  it  being 
possible  now  to  make  remittances  abroad  without  the  pro- 
hibitive loss  sustained  on  paper  currency 

In  the  latter  part  of  last  year  there  was  a  considerable  re- 
covery in  the  exchange  value  in  neutral  countries  of  the  German 
mark  and  Austrian  krone,  and  a  corresponding  depreciation  in 
sterling  exchange.  This  might  have  been  an  ordinary  case  of 
reaction,  but  it  is  rather  significant  that  since  the  beginning 
of  the  German  offensive  an  appreciable  relapse  has  occurred 
in  the  enemy  exchanges.  During  the  past  month  the  value  of 
100  Austrian  krone  in  Dutch  currency  has  fallen  from  24  fl.  10  c. 
to  19  fl.  55  c,  while  that  of  100  German  marks  has  declined  front 
3S  fl.  90  c.  to  33  fl.  70  c,  which  compares  with  43  fl.  52  c.  on- 
March  i  last.  On  the  other  hand,  the  value  of  sterling  in 
Dutch  currency  has  ri.sen  during  the  past  month,  and,  taking 
the  Amsterdam  exchange  as  the  basis  of  calculation,  it  is  seen 
that  £1  will  now  purchase  48.03  krone,  as  against  only  39.27 
on  May  25,  while  it  is  now  the  equivalent  in  florins  of  27.86 
marks,  instead  of  only  24.33  ''n  May  25.  The  par  of  exchange 
for  Austrian  krone  is  24  to  the  pound  sterling,  and  for  German 
marks  20.40  to  the  pound.  The  movement  is  certainly  rather 
significant  of  the  real  feeling  existing  in  the  neutral  market? 
as  to  the  credit  position  of  the  Central  Powers. 

Prominent  among  the  foreign  exchange  movements  this  week 
has  been  a  substantial  improvement  in  the  sterling  value  of  the 
lira,  exchange  on  Milan  being  quoted  at  44.12}  Ir.  to  the 
pound,  a  fall  of  52}  centimes.  Offerings  from  5>outh  America 
were  the  main  reason  for  the  recent  heavy  depreciation  in  lire, 
but  the  cause  of  the  recovery  is  attributed  to  the  more  effective 
operations  of  the  Italian  Control  Committee.  The  Spanish 
exchange  has  relapsed  to  17.17J  pesetas  to  the  pound,  despite 
the  large  influx  of  gold  into  Spain  and  the  raising  of  foreign 
credits  there,  as  shown  in  the  latest  return  ot  the  Bank  of 
Spain.  Stockholm,  quoted  at  13-30%  kr.,  has  moved  rather 
sharply  against  this  country,  but  the  other  Scandinavian  ex- 
changes, as  well  as  the  Dutch  rate,  have  moved  in  our  favour. 
Swiss  Exchange  has  risen  15J  c.  to  18.90  fr.  to  the  pound.  The 
premium  on  New  York  funds  in  Montreal  has  risen  still  further, 
Montreal  exchange  being  a  full  point  above  paricy  at  $4.87}. 
Silver. 

About  silver  there  is  never  anything  to  say  now.  It  just 
stands  at  48Jd.  per  oz.,  and  all  that  comes  to  the  market  is 
being  bought  up  to  manufacture  currency.  Gold  and  silver  are 
both  forbidden  to  be  exported  from  Mexico,  but  how  that  pro- 
hibition is  to  be  maintained  we  cannot  imagine.  The  Indian 
currency  returns  quoted  in  Montagu's  circular  show  a  steady- 
increase  in  the  notes  in  circulation,  which  on  June  22  were 
given  at  11,351  Ia<^  of  rupees,  and  an  equally  steady,  though 
insignficant,  decline  in  the  coin  and  bullion  reserve ;  but  while 
the  gold  coin  and  bullion  in  India  was  221  lacs  larger  on 
June  22  than  on  June  7,  gold  held  out  of  India  had  fallen 
within  the  week  from  270  Jacs  to  45  lacs.  The  stock  of  silver 
in  Shanghai  was  at  the  same  date  about  27,800,000  ozs.  in  sycee 
and  $14,700,000,  a  decrease  of  200.000  ozs.  and  an  increase  of. 
$300,000. 


BANK    OF    ENGLAND 


AN  ACCOUNT  pursuant  to  the  Act  7  and  8  Vict.,  cap.  32.  for  the 
Week  ending  on  Wednesday.  June  26,  1918. 


Notes  Issued 


ISSUE    DEPARTMENT 

£ 


83,059,805 


£83,059,805 


Government  Debt .. 
Other  Securities    .. 
Gold  Coin  and  Bnllion 
Silver  Bullion 


£ 

11,015,100 
7,434.900 
64,609,805 


£89,05»,8»5 


BANKING    DEPARTMENT. 


Propilelors'  Capital 

Real 

Publlo  Deposlts(inoludlng 

Baobequer,     Savings 

Banlfs,  Commissioners 

of  National  Debt,  and 

Dividend  Aooonnts) ..  35,779,030 
Other  Deposits  ..  ..  128,849,3)6 
Saveo  Dav  and  otbai  Bills  10,050 

£182,455.678 
Dated  June  27, 1928. 


•4,553,000  ;  Government  Securities  ..  51,051,737 

3,264,262     Other  Seourltias    ..        ..  too. 799. 8^ 

Notes 29,38s.i9S 

Gold  and  Silver  Colo     ..  6i*,i9i 


fi82.45- 
E.  M.  HARVEY,  Chi»<  C«»l»«' 


June  29,  1918. 


Zbc  Jnvestots'  IReview* 


63J 


BANKING    DEPARTMENT. 

In  the  following  table  will  be  found  the  movements  compared 
with  the  previous  week,  and  also  the  totals  for  that  week  and  the 
corresponding  return  last  year. 


I^st  year. 
June  jy. 


£ 

39.163, 

125,156, 
27, 

43,270, 
100,225,1 
36,585,, 


Liabilities. 
Rest 

Pub.  Deposits 
Olbec    do. 
7  Oay  Bills 
Assets. 
Gov,  Seoucllles. 
Otber       do. 
Total  RflseiTe 


39,399,545  iNoteClroulatlOD 
57,534.^74  Coin  and  Bullion 
22'3  p.c.    Proportion 
5      „      iBank  Rate 


June  19, 
iglS. 


£ 

3,200,091 

36,121,637 

125,187,333 

10,093 

53,749.732 
95,050,461 
30,370,961 


£ 

52,383,965 
64,205,926 

5  pc. 


June  26, 
1918. 


£ 

3,264,262 

35,779,030 

128,849,336 

10,050 

51,651,732 
100,799,899 
30,004,047 


£ 

53,674,110 
65,128,157 
5  P-c. 
i8'3    „ 


£ 
64,171 

3,662,003 

Decrease. 

2,098,000 

267,914 


6,092,088 


Increase. 

£ 

I ,290,145 

1,002,231 


Decrease. 


£ 

342,607 

Increase. 

5.749.438 


6,092,08s 


PUBLIC   INCOME  AND   EXPENDITURE. 

(For  7  days  ended  June  22.) 


REVBiNUE. 


Expenditure. 


£ 

Customs          ..        ,,        ..  2,659,000 

Excise 1,412,000 

Estate,  &c.,  Duties  ..        ..  656,000 

Stamps..        .,        ..        ..  5,000 

Land  Tax  and  House  Duty  — 

Property  and  Income  Tax  1,602,000 

Excess  Profits  Tax..        ..  4,719,000 

Land  Valwes 50,000 

Post  Ofi&ce 350,000 

Crown  Lands — 

aundry  Loans 13.952 

Miscellaneous 1,298,605 

Bullion  advances  repaid    .,  320 

ForTreasuryBillsf  or  Supply  52,507,000 

3%  Excheqner  Bonds,  1930  — 

5%  Exchequer  Bonds,  1922. .  — 

6%  Exchequer  Bonds,  1920. ,  — 

National  War  Bonds           *  35,904,000 

War  Savings  Certificates..  3,300,000 
4%  War  Loan,  1929-1942  ) 
5%  War  Loan,  1929-1947  )  ' ' 
Other  Debts  created  under 
War  Loan  Act,  1915,  and 

Finance  Act,  igi6..         ..  11,049,318 

Telegraph  Money  Act,  1913  — 
Under  Post  Office  Rly.  Act, 

1913 — 

Under  Military  Works  Act, 

1897-1903       — 

Under  Public  Buildings    ..  — 

Under  Housing  Act..        ,.  — 
Repayment  of  Advance  for 
Inter  st     on     Exchequer 

Bonas           ' — 

China  Indemnity      ..        ..  — 
East    Africa    Loan    repay- 
ments   — 

Suez  Canal  Drawn  Shares. .  — 

Ways  and  Means  Advances  1,000,0 
Decrease      in      Exchequer 

balances       — 


£106,845,875 


£ 

National  Debt  Service       ..  540,616 

Interest,   &c.,  on  War  Debt  1,163,648 

Development  &  Road  Impvt  — 

Payments  to  Local  Taxation  — 
Other    Consolidated    Fund 

c*^^fg|s 53.750 

Supply  Services        ..         ..43,(^,000 

Bullion  Advances     . .         , .  2oo,oco 
For    Advance   for    Interest 
on  Exchequer  Bonds  un- 
der   Capital   Expenditure 

(Money)  Act,  1904  . .         . .  — 

For  Treasury  Bills   ..       ..  45,870,00a 
Other  Debt  under  War  Loan 

Acts,  1914-16          ..        ..  61,959 
For    War     Loan  and     Ex- 
chequer     Bonds      under 
Section  61  of  Finance  Act, 

1916,  and  Section  54,  1917  530,222 
Under   Telegraph    (Money) 

Act,  1913 — 

Under    Post    Office     (Lon- 
don) Railway  Act,  1913  . ,  — 
Under  Militari/  Works  Acts  — 
Under  Housing  Act,  1914..  — 
Public    Buildings  Expendi- 
ture Act,  1903         ..         ..  — 
Old  Sinking  Fund,  1907-8..  — 
Sinking  Fund,  1910-11        ..  — 
China  Indemnity      ,.         ,.  — 
East  African  Loan .,           .,  — 
Cunard  Agreement  Act     ..  — 
Expenditure  Certificates   ..  1,270,500 
Depreciation  Fund  ..        ..  750,000 
Suez  Canal  Drawn  Shares. .  — 
Temp      Advances     Repaid  12,500,000 
Increase       in       Exchequer 
balances       845,180 


jT  106,845 .875 


■^Excluding  sales  through  banks  which  have  not  yet  been  brought  to  account. 


LONDON 

BANKERS' 

CLEARING. 

Date. 

Increase. 

Decrease. 

1918. 

1917. 

£ 

£ 

January 

2,073,224,000 

1,865,125,000 

208,099,000 

February 

1,605,654,000 

r.779.^24,000 

— 

173.870,000 

March 

1,784,836,000 

1,492,825,000 

292,011,000 

April 

1,446,306,000 

1,403.902,000 

42,404,000 



May 

"1837,751,000 

1.779. 366, 000 

58,385,000 

__ 

June           5 

393,902,000 

396,033,000 

— 

2,131,000 

,,           12 

383,311,000 

342.330,000 

40,981,000 

, 

19 

382,394,030 

388,145,000 



5,751.000 

26 

389,093,000 

360,304,000 

24.7J9.000 

Total 

10,097,321,000 

8,811,524,000 

666,669,000 

181,752,000 

CURRENCY  NOTES. 

Return  of  Currency  Notes  for  the  week  ended  June  26,  igiS. 


Issued. 

Cancelled. 

Outstanding. 

£1  notes         

los.  notes        

Note  certificates 
Previous  total 

£ 

5,193,559 

1.516,444 

100,000 

941.693  430 

2,675,320 

1,269,773 

420,000 

681,625,934 

183,182,690 
39,859.754 
29,870,000 

948,503,421       1     695,590,977 

252,912,444 

Ratio  of  gold  held  against  notes,  this  week,  12.77  P-C. ;  last  week,  12.61  p.c. 

NJEW   YORK  ASSOCIATED    BANKS   AND    TRUST    COMPANIES 

^ (dollar  at  4s.).       


Loans,  Discounts,  etc. 
Cash  in  Vaults  of  Members 

Fed.  Res.  Bk. 
A-figregatf^  Reserves     . .        , 

Excess  Reserve 

Nett  Demand  Deposits 
Nett  Time  Deposits     . . 
U.S.  Deposits  Deducted 
Circulation         


June  22,1918  June  15,  1918 


£ 
902,182,000 

20,016,000 
112,350,030 

13,128.000 
747,416,000 

31,786,000 

70,380,000 
7,318,000 


June  8,  igiS 


£ 

909,352,000 

20,240  000 

110,866,000 

10,650,000 

753.170,000 

31,518,000 

59,470,000 

7,ig6,ooo 


900,698,000 

19,972,000 
107,004,000 
7,498,000 
749,394,000 
31,288,000 
59,386,000 
7,434>ooo 


June  23, 19:7 


£ 
782,722,000 


7,342,000 
687,920.1000 
33,444,000 


FEDERAL  RESERVE  BANKS  (U.S.)  (dollar  at  4«,), 


Gold  coin  and  certificates 
Gold  Settlement  Fund 
Gold  with  foreign  agencies  . . 
^  .Total  gold  held  by  banks 
Gold  with  Federal  Res.  Agent 
Gold  Redemption  Fund 

Total  gold  reserves    . . 
Legal  tender  notes,  silver,  Sec. 

Total  reserves  . . 
Bills  disoounted— Members' . . 
Bills  bought  in  open  market 

Total  bills  on  hand     . . 
U.S.  Gov.  long-term  sec. 
U.S.  Gov.  short  term  sec.     . 
All  other  earning  assets 

Total  earning  assets  .. 
Due  fm  other  Fed  Res  bnk— " 
Uncollected  items 
Total  dedctns.  fm  gross  dep. 
5%Red.FundagFed.Res.bknts 
All  other  resources 

Total  resources 
Capital  paid  in    . . 

Surplus 

Government  deposits  . . 
Due  to  membrs-Res.  account 
Collection  items 
Otherdepsinc  For.Govt  crdts 
Total  gross  deposits  . . 
F.R.  notes  in  actual  circulat'n 
F.R.  bk  nts  in  circn-nettllab. 
All  other  liab,  in  for  Gov  crdts 

Total  liabilities 
Gold  res.  ag  nett  deposit  llab. 
Gold  res  ag  F.R.  nts  in  act  circ 
Ratio  of  Eold  res  to  nett  dep 

and  F.R.  nts  liabilities  com 

bined      . .         

Ratio    of    total    res.    to   net 

deposit  and   F.R.    note  Ha 

bilities  comb  aed 


May  24,  1918.     May  17,  1J18.        May  25,  I«I7. 


£ 
95,692,000 

81,553,400 
10,500.000 


i87,74'i,400 

186,036,200 

5,823,roo 


379,604,600 
ii,6r6,6oo 


391,211,200 
184,659,800 
55,644.200 


240,304,000 
8,413,400 
6,495,200 
230,200 


255,442,800 
*2,8o6,6oo 
73,088.000 


£ 

95,9'5,»40 
83,667,400 
10,500,000 


190,073,200 

183,107,200 

5.700.400 


378,880,800 
1 1. 661.600 


390,542,400 

168,453,000 

55,977.200 


224,430,200 

8,208,200 

14,608,600 

298,40* 


70,281,400 
107,400 
17.800 


247,5<5,400 

*376,40o 

76,8-8,200 


717,060,600 


15,093,000 
226,80a 
24,470,000 
287,256,800 
48,497,600 
2i,s8o,6oo 


381,805,000 

315,724,200 

1,552,800 

2,658,800 


7l7,o6o,too 


60.3% 
61.2% 


60.5% 


76,501,800 
106,000 
15.400 


714,71  r,nro 


15,063,000 
226,800 
9,750,600 
292,227,600 
56,495,coo 
22,919,200 


381,392,400 

313,889,000 

1,575,600 

e, 564,800 


714.711.000 


62.3% 
60.1% 


6l.2% 


£ 
66,853,000 
36,718,000 


103,571,000 

91,322,20a 

581,000 


195,474,200 
7,378,400 

202,852,600 
9,517,400 
21.475.400 


30,992,800 
7,302,600 

16,229.000 
2. 96s, 200 

57,489,600 


67,884.000 

8o,oon 

1,254,600 

329,560.800 


11,398,20a 

15.222,800 
162,665,200 
34,030,200 
15,200,000'. 


227,118,200 
96,880,400 

164,000 

329,560,800 

65.1% 
101.1% 


78.2% 


LiiMiies  comp  n^g      ..        ..  62.4% 63.1% Si.zP/h 

'Difi^erence  between  net  amounts  due  from  and  net  amounts  due  to  other 
3deral  Rf,«prv,>  Rantc 


Federal  Reserve  Banks 


BANK  OP  FRANCE   (25  francs  to  the  £). 


Gold  In  hand 
Sliver  In  hand 
Bills  discounted 
Advances 
Note  circulation 
Public  deposits 
Private  deposits 
Poreien  Bills. . 


June  20, 1918^ 

£ 

134,414,320 

10,242^60 

53.395,680 

38.402,360 

1,136,571,880 

2,715,280 

157,124,840 

228,880 


June  13,  1918. 


133,942,120 
10,142,080 
59,102,720 
38,265,920 

I,I29,282,9.!0 

2,129.080 
155,050,920 
277,280 


June  6,  1918. 


£ 

133,865,440 

10,156,600 

55,966.240 

37,471,520 

1,120,487,840 

2,187,360 

154,435,040 

346,680 


June  gT,  19171 


130,009,400 

10,347,040 

i9,5g2,48o> 

46,015,200 

791,117,040 

4,453,040 

103,697,520 

116,080 


Proportion  between  bullion  and  cironlation  19.98  per  cent.,  against  20.06  per 
cent,  last  week.  Advances  to  the  State  £728,000,000,  increase  ,<  10,000,000.  The 
adjourned  payments  of  drafts  in  Paris  on  account  of  the  moratorium,  £18,954,600,. 
decrease  £5,920,  and  at  the  branches  £24,192,560,  decrease  £33,280. 

BANK    OP   SPAIN  (25  pesetas  to  tbe  £). 


June  15,1918  June  8,  igi8 


Gold        83,330,472  82 

Silver 28,153,897  28, 

ForeiEn  Bills 3,986,616  3 

Discounts  ana  Short  Bills  ..  32,236,68:  32 

Treasury  Account,  &c.         ..  26,336,643  25 

Notes  In  Circulation  ..        ..  116,921,994  117, 

Current  Accounts,  DeposUsi    41,082,178  40, 

Dividends,  Interests,  &a.     ..  1,679,677 

Sovernment  Securities        ..  2,493,157 

IMPERIAL  BANK  OF  GERMANY  (20  marks  to  the  £) 


June  I,  igi8  June  16.1917- 


£ 

930,479 
159,951 
,813,496 
,934,536 
,465,616 
,538,517 
,279,566 

699,391 

504,248 


£ 

82,675,354 
28,340,131 
3,813,371 
33,039,224 
25,209,919 
117,424,483 
40,115,188 
2,429,090 

i,953,843_ 


£ 

60,347,496 

30,166,392 

3,572,832 

30,051,567 

25,649,105 

97,909,255 

31,287,403 

1,271,564 

8,768,289 


Total  Coin  &  Bullion 
Treasury  Notes 
Bills  discounted 
Advances       .,        ,. 
Note  circulation      .. 
Deposits 


June  22,  igi8. 


120,340,500 
81,387,100 
741,601,150 
239900 
602,376,150 
405,908,050 


June  15, 1918, 


£ 
123,319,250 
81,561,050 
746,833.850 
473,850 
602,103,000 
395.237,000 


June  7,  1918. 


£ 
123,308,500 
81,549,350 
715,445,500 
398,600 
601,709,700 
368,201,200 


June  22,  1917.. 


£ 
125,776,250 
26,542,600 
479,314,200 
433,950 
410,986,800 
257,413,500 


Clearing  House   reltirn     during    March    £459,815,355,   against    £420,879,905. 
in  Fttbruary. 

BANK  OF  ITALY  (25  lire  to  tbe  £). 


Total  cash 
Iniand  Bills 
FoKign  Bills     . . 
Advances 

Government  sscurities 
Circulation 
Deposits  at  notice 
OuTPent  aotowits 


Mayio,igi8. 


April30,  i9t8'April20,i^8 


£ 

41,714,120 

28,475.520 

884,120 

25,090,600 

8,600,160 

292,836,520 

35,482,320 

33,878,640 


£^ 

43 .013. 640 

28,732,360 

884,120 

26,187,000 

8,802,640 

290,io8,28ff 

35.H5.no 

22,829,280 


£    „ 

42,314,480 

29,285,500 

884,200 

24,580,320 

8,803,84a 

285,995,640 

34,878,760 

24.957.840 


May  10, 1917 


£ 

4i,7S«,96« 

20,854,960 

833,44* 

14, 726, 960 

S,787,aB» 

161,309,960 

l8,399,4«« 

13,775,600 


BANK 

OF    SWEDEN  (18  kroner  to  the  £) 

• 

June  8,  igi8. 

June  I,  1918. 

May  25,  1918. 

June  9,  1917. 

f 

£ 

£ 

£ 

Gold 

14,362,000 

14,371,000 

14,404.000 

11,270,000 

Balance   abroad  and 

Foreign  Bills 
Swedish  and  Foreign 

7,528,000 

7,058,000 

7,124,000 

7,285,000 

Govt.  Securities  .. 

5,371,000 

5,384,000 

4,oo4,oco 

3,220,000 

Discounts  and  Loans 

13,804,000 

13,131,000 

13,025,000 

8,004,000 

Notes  in  oiroulrtion 

34,761,00c 

35,416.000 

32,429,000 

24,116,000 

Deposits  at  notice  .. 

6,539,000 

5,253,000 

6,297,000 

5,608,000 

6S4 


Zbc  ^mc^lotB'  1Riex>iew. 


Ji  NF.  2g,   iqi8. 


BAM»  Of  NORWAY  (18  kroner  1o  the  £l. 


Gold 

Bttange  abroad  and 

Forrlgn  Bills 
Crover'nt  Securities, . 
DlseouDts  &  Loans. 
Notas  In  Clroulation 
Daposits  al  notice.. 


June  7,  igiS.  May  31, 1918.    Ma]r22, 191B.    June  7,   1917 


7,100,000 


3,812,000 

712,000 

I7,77>,00D 

19,513,000 

6.'55iOoc 


4.377,coo 

706,000 

13,052,000 

13,346,000 

7,318.000 


SWISS  NATIONAL  BANK  (25  (ranct  to  the  £). 

June  15,  igi8. 

'7,713,570 
11,794,988 
20,037,724 

4,918,680 

June  7,  1918. 

17,492,112 
■■,435,184 
27,582,824 

4,263,476 

May  31, 1918. 

I7,537,>7fi 
12,193,380 

28,201,024 

4,239,172 

June  15,  1917. 

Gold  and  allTet 

BUla 

Note  olroulatlon 
Current  and  deposit 
aooonnts     .. 

•5,749,504 

7,5"9.3l6 
20,001,872 

4,763,,;64 

NETHERUNUS  BANK  (12  Florins  to  the  £). 


Gold  and  Silver 
Bills  and  Advances 
'Yloic  circulation 
Daposits. 


June  22,1911 

6o,4^,if6 

14,273.333 
75,387,000 

5,582,333 


Juneij,  1918 


£ 
60,467,250 
14,282,166 
76,208,166 

4,881,250 


Junes, 

918. 

60,661 

14.759 

76.633 

4.758 

333 
000 

250 

033 

June  23, 1917 


30,893,916 

12,446,750 

61,757,333 

5,503,500 


LONDON  COURSE  Of 

EXCHANGE. 

PlMt. 

Usance. 

June  25,  1918. 

June  27,  1318. 

Sellers. 

Bayers. 

Sellers. 

Buyers. 

Amsterdam  . .     . . 

Cable  transfers 

9'34 

9.38 

936 

9.40 

Paris      

Cable  transfers 

27.  ■si 

27.>6i 

27.13^ 

27.164 

Three  months'  bills. .     . . 

27.54 

27.60 

27.54 

27.60 

Switzerland..     ..' 

Cable  transfers 

18.78 

18.87 

18.88 

18.98 

Three  months'  bills  . .     , . 

19.13 

19.22 

19.23 

■9-33 

Genoa,  Ac 

Cable  transfers 

44.20 

44-35 

43.90 

44.05 

Spun     

Cable  transfers 

''6^^ 

17.25 

16.85 

16.95 

, 

Three  months'  bills  . .     . . 

65? 

65^ 

29J 

66i 

Lisbon  and  Oporto 

Cable  transfers 

30 

3.J 

30J 

Copenhagen..     .. 

Cable  transfers 

15.30 

15-to 

15.28 

15.38 

Cbristiania  . .     . . 

Cable  transfers 

I5.0» 

15.17 

15.05 

15.15 

Stockholm  ..     .. 

Cable  transfers 

■3.45 

13.65 

13.26 

13.36 

FOREIGN   RATES   OF   EXCHANGE  ON   LONDON. 


Method  of 

V 

Id 

Last 

This 

Quoting. 

Week. 

Week. 

Paris,  cbeqoes 

Francs  to  £1 

25-221 

27.15 

27.15 

Amsterdam,  cheques 

Florins  to  £1 

12.107 

9.314 

9.37 

Italy,  sight 

Lire  io  £1  .. 

25.22} 

43.70 

43-85 

Madrid,  sight 

Pesetas  to  £i 

25.22J 

■7 

■7 

Lisbon,  sight 

Pence  to  milreis  . . 

53id. 

3id. 

305d. 

Switzerland,  sight   . . 

Francs  to  £  I 

25.22i 

i8.7aj 

18.87.1 

Christiania,  sight 

Kroner  to  £1 

18.159 

l5^o 

15.08I 

Stockholm,  sight     .. 

Kroner  to  £1 

18.159 

13.70 

«3-34 

Copenhagen,  sight   .. 

Kroner  to  £1 

18.159 

■  5.30 

■5-324 

Petrograd,  sight 

Roubles  to  £10     . . 

9457 

nom. 

nom. 

Alexandria,  sight 

Piastres  to  £1      .. 

9?i 

97i 

9'i 

1/5M 

Bombay,  XT 

Sterling  to  rupee. . 

•  1/4 

'M 

Calcutta,  T.T 

Sterling  to  rupee.. 
Sterling  to  dollar. . 

1/4 

■/5*J 

HoD«Kong,T.T 

Sha^ai,  T.T 

3/3 

I'M 

Sterling  to  tael     . . 

« 

4/7i 

Stagapore,  T.T 

Ypkohama,  T.T 

Mew  York,  cable     .. 

Sterling  to  dollar. . 

— 

2kir. 

2/4^ 

Sterling  to  yen     . . 
Dollars  to  £1 

24.58d. 

2/.2g 

2/2A 

4.86§ 

;f 

4.76*1 

Buenos  Aires,  T.T 

Pence  to  dollar    . . 

47.58d. 

5-Jd 

Valparaiso,  90  days . . 

Pence  to  peso 

■7Ad- 

UoatcTideo,  T.T 

1  Pence  to  dollar    . . 

5ld. 

613d. 

6iJd. 

Klo  de  Janeiro,  90  days    .., 

Pence  to  milreis  . . 

i      i6d. 

zim- 

I2«d. 

OPEN  MARKET  DISCOUNT. 


Thirty  and  sixty  day  remitted  

Three  mootfas  

j#oormoDlhs  ,,  

Six  months  ,  

Three  motitlis  fine  ialand  billi  

Four  months  

Six  months  

BANK   AND  DEPOSIT   RATES. 

RsDk  of  England  minimum  dlacoant  rate        ..        ■• 

,1  ,,         short  loan  rates  

Banners' raie  on  deposits •• 

Bill  brokers' deposit  rate  (0. ill) 

„  7  and  14  days' notice  

-  Ourrent  rates  for  7  day  loans 

,.  for  call  loans  


Last  week.  Thisweek 
Per  cent.    Per  cent . 


34-3; 
34—3: 
3J— 3ft 


3J 
..  3^-3  ft 
..  35-3ft         -_     _ 
..  ii—ii'i  ■■  34—3 
..       4-4     •■       4— L 

..    4i-i  ..     4i— i 

Last  week  This  week 
Per  cent.  Per  cent. 
..        5        ••        5 


3 

3 

3 

3 

3 

3 

1*       . 

•       3J 

-3i     . 

.     3-3i 

The  Week's    Stock   Markets. 


to  i>ersist  steadfa«tly  some  little  while  l-mger  to  bring  the 
rabics-infectod  Ilttn  to  his  >e.ise.s.  Apart  from  this  dominating 
factor,  there-    have  been  local    influences   Jn-lping   to  encourage 


i  Last   This  II 

!week  Weekli 


Consols I  56 

War  Loan   3*% 1  87} 

4i% I  994 

5%  1929-47..!  93J 

„  4%,  1919-42.. I  102 

India  3% 


3i%- 

alian 


¥*i 


On  the  whole,  the  news  has  been  f.ivourable  to  optimistic 
yiews  on  Ihe  Stock  Exchange,  and  dealers  have  made  the 
most  of  it  in  every  section,  from  the  Funds  to  the  industrial, 
plantation,  and  minipg  markets.  The  brilliant  victory  of  Italy 
on  the  Piave  gave  the  first  impetus  to  the  upward  movement, 
but  the  influence  of  the  increasing  activity  of  American  con- 
tingents on  the  Western  Front  helped.  Their  daily  "minor" 
operations "'  and  their  participation  in  air  raids  have  inspired 
the  most  chicken-hearted  with  confidence  that  the  Allies  have  only 


Australian  5}%,  1920-22 

Canada  4%,  1940-00 80J 

.,       44%,  i9>o-3 1  95 

Argentine  5%  1886 1  100 

Belgian3% j  63J 

Brazil,  1913 ;  70) 

.,       5%.  1914    i  86 

Chinese  1896 92 

,.       1912  81 

Egypt  Unified  4% I  89 

9, 

'i 
36 

36.t 
87i 
«7j 
56 
8i 

157 
84 
12J 
60 
26 

154} 
48* 
694 
69? 
59J 

H 
124 


1 

93i 


N.S.W.  5%,  1921-3   

I,      51%,  '9*0-2 

..     5f%I>ebs 

:New  Zealand  4%,  1929    . 
102    1 1  Queensland  4}%.  1920-3. 
35i  \S.  Australian  5.1.7, 1922-7. . 
(Union  of  S.  Africa  4}%, 

I     1920-5    

[  Victoria  4i%.  1920-5 .... 

Westn.Aus.4%    

French  War  Loan,  3% 
Japan  4j%  (tst),  1905   . 

5%.  1907 

Mexican  5%,  1899    ... 
Russia  4  % 


Caledonian  defd. 

Gt.  Central  pio 

,,        „        dfd 

Gt.  Eastern 

Gt.  Northern  dfd 

Gt.  Western    

Lanes,  and  Yorks 

London  Brighton  defd. 
London  Chatham  ord... 
Canadian  Pacific 


E.  Indian  Guar.  44  %  deba. 
Grand  Trunk  ord.    .... 

Do,  1st  pf.  .. 

Do.  3rd  pf.  . . 

Antolagasta  dfd 

B.  A.  &  Pacific 

B.  A.  Gt.  Southern  .... 

B.  A.  Western    

Cent.  Argentine  ord.... 
Anglo-South  American 
bank  of  Australasia..., 
Bank  of  N.S.  Wale I    35'x 


65 

100* 

8o{ 
9Si 
too 

64 

70 

86 
92 
81 
89 

9Jl 
14 

61 
36 

68 

8j 
■57 
84 


55 

32i 
57 
44 
92I 

Metropolitan |    22I 


4i  %,  1909  . 
5%,  1906... 


5%,  1906., 
London  and  N.-W. 
London  and  S.-W.  dfd. 


Last  I  TCis 
3VeekjWeek 


97f 

IO2J 

932 
loot 

94i 
93J 

76J 


Met.  District  , 

Midland  dfd 

Nth.  British  dfd. 

Nth.-Easlern 

Sth.-Eastern  dfd. 


Chesapeake. 

Erie 

Southern  ... 


Barclay  &  Co.  "A" 1 

Do.       "B" 

Capital  &  Counties  

Chartered  of  India    

Hongkong  &  Shanghai    . . 

Lloyds  

Armstrong,  Whitworth  .. 
Birmingham  Small  Arms 
Cammell-Laird 


7j 

13 

26 

76 

88 

25.1 
43'3 
69/6 


Cargo  Fleet ]  26/6 

Davis,  D.,5/   11/9 

Dorman,  Long  I   33/6 

Associated  Cement !      4 

Boraidfd 37/6  | 

Bovril    21/ 

British  Amer.  Tobacco  pf.  18/ 
British  Aluminium 
British  Oil  &  Cake 
Brunner,  Mond  ... 
Caatner-Kellner . . . 
Eastern  Telegraph 
l£astmans 


34/ 
33/3 

3i 

■59i 
13/3 

Cunard !    4^ 

Furness,  Withy 

P.  &0.  dfd 

Royal  Mail 


148X 
49 
70 
70* 
6o5 

8i 

123 

35 

74 

13 

26 

77 

89 

253 
45/3 
71/ 

H 
26/6 

12/ 

36/6 

3A 
37/6 

21/ 

18/ 

34/ 
33/6 


.  Mexican  ord., 
I  San  Paulo  (Brazilian).. 
United  of  Havana 


Leopaldina |  37*x 

"■     ■  ■  20 

183 
76J 


London  &  Brazilian.... 
London  City  &  Midland 
London  County  8c  Westt 
London  loint  Stock.... 

Nat.Prov.(£ioipd) 

Do.  (£12  pd) 

Standard  of  S. A 

Union  Discount 


9i 


70/3 
3444 
123X 


Anglo  Argentine  istPf...  I      3    ' 

BrazilTraction 42J 

Datracq    1  32^ 

38/ 


Anglo-Egyptian 

Burmah 

Lobitos 

Mexican  Eagle  pf 3^ 

North  Caucasian 2/6 

Roumanian  Cons |     8/ 

Allagar2/- :    2/7^ 

Anglo-Dutch,  £1    1  28/3 

Anglo-Java  Rub.  2/-     ....j     5/9 

Anglo-Malay  2/ 1  12/3 

Ayer  Kuning  £1 ]  40/ 

Brit.  N.  Borneo  Trust  £v  16/9 

BukitClohj/- i     4/6 

Bukit  Mertajam  2/-  I    4/ 

Bukit  Sembawang  2/- ....'    2/7 

Carey  United  £1   •    35/ 

Chersonese ;     3/1 

Cheviot  2/-   I     5/ 

Dalkeith  2/- ;     2/3 

Grand  Central  £1 |  22/3 

Highlands  £1 50/ 

Java  Investment  £1 23/9 

Johore  Rubber  Lands  £i..l  28/    | 

Kaniuniiii  2/- ;   3/7    ' 

Kinta  Kellas  2/-  \  3/7    , 

-    •       ■  8/       • 

36/3 

23/6S 

8/3  1 

36/6  : 

5/    I 

^i 
70/9 
11/9 
6 

15/ 
3*1 
32/3  ^ 
17/6 
m  : 

29^5   ' 
2/>oJ 


■59.. 

13/9 

4JS 
72/6 
346.5 
124 

3 

43 
33/9 
39/ 


Kynocbs  40/ 

Mond  Nickel  ord 33 

Nobel,  £  I    72/6X 

South  Durham  Steel  ....    46/6 

Thornycroft    40' 

Vickers 44/9 

ForestalLand '   44/6 

Hudson's  Bay    [    7^ 

Imperial  Tobacco  'C  pf.j  32/6 

Lever  Bros.  "  C  "  pf 

Lyons,  J 

Marconi    

Maypole  Dairy  dfd 

Pears,  A.  &F 

Underground  Inc.  Bds. .. 


21/ 
■6/3 


oats St 

^ourtaulds ;& 

jlBnglish  Sewing  Cotton  ..     60/ 

I  Pine  Cotton  Spinners  ... .    34/3 

II  Harrods  Stores 2j^ 

jDennis  Bros |  35/9 

i  National  Steam  Car 16/ 

llRolls-Royce I    2s|^ 

Shell 

I  Spies  (10/.) 

Trinidad  Leaseholds  . 
I  Ural  Caspian 

Venezuelan 


Labu2/-. 

Langen  Java  £1 

Linggi2/- 

London  Asiatic  2/- 

Malayalam  £1 , 

Merliinau  2/-   

Bechuanaland  Exp 

Brakpan  

Broken  Hill  Prop.  (8/-)   . 

Cam  &  Motor 

Central  Mining  (£12)  ... 

Chartered    

City  Deep 

Cons.  Gold  Fields    ..... 

Cons.  Langlaagte , 

Crown  Mines  (10/-)  .... 
De  Beers  dfd.  (£2  iot.) 

East  Pool(5/-) 

East  Rand   

Geduld 

Geevor  (10/-)    

G<yv.  Areas  Mod     

Gt.  Boulder  (2/-I    


23/3 
"13 


.35b 

.I'J     , 

8/6  I 

2/7i|iPataling  2/- 

29/3    IPerak  2/-  

5/9    rPort  Dickson  2/-  

12/9     Rub.  Estates  Krian  «/-. 

42/     IRubber  Trust  £1 

I   :6/9     Sampang  (Java)  2/-... 

;   4/6     jSeaport  £1 

j  4/14    !Sengat2/- 

1  2/8       Seremban  £1 

I    33/     ;Sialang£i    

I  3/        Singapore  Para  2/-    . . . 
I    5/       Singapore  United  2/-    . 

2/3       Straits  Bertam  2/- . . . . 

22/6    Sumatra  Para  2/- 

5o'6      Sungei  Bahrii  £t   .... 
i|23/i.>.V  Taiping  2/- 
I  27/9 
'   3/7 
;  3/7 

8/ 
36/3 
24/3 

8/x 
36/  , 
4/loi 

65/x  ! 

"ig  I 
H\ 
15/3 

3*.  ' 
■SJ 

17/    ■' 
a 

14J 
»9/3 

3/6 

221 

3H 
10/x 


I0<^ 
101 

93i 

1004 

944 

7« 

iX* 
0 

89 

57 

364 

41 

49i 

93J 

Ui 

224 

5«l 
14 

314 

60X 

■9 
26 


20| 

Hi 

30 

12 


40/6 

3l 

7*1 
50/ 
44/ 

45 '6 
44/6 
7A 
31/6 
20/3 

\\ 
15/9 


62/6 

35/ 

36/6 

16/3 

2I 

6|. 


Tandjong  £1   i 

Tandjong  Malim  £1...      ' 

Tehran  £1 

Telogoredjo  £1 

"Tempeh  2/- 

United  Serdang  2/-  ... 

Vald'Or  2/- 

Vallambrosa  3,'- 


I  Kyshtim    

Mashonaland  Agency 
I  Meyer  &  Charlton    . . 

I  Modder  "B" 

Do.    Deep 

1  Mysore 

Nigerian  Tin 

Pahang  (3/-) 

Rand  .Mines  (5/-)   ••.■ 

Rcnong 

Rio  Tinto(£5)  

Russo- Asi  itic 

South  Crctty(5/-).... 

Spring  Mines 

Tanganyika 

Tanalyk    

Van  Ryn  Deep' 


66^ 


business.     We  have  reached    the   end   of  the  half-year,   and    a 
great  many  stocks,   such  as   Home  Kail.<  and   a  whole   host  of 


29,  igiS. 


^be  Jnvestors'  IReview. 


635 


ethers,  ;ire  what  is  called  "  full  of  dividend,  "  and  the  entire 
amount  of  the  interest  is  seldom  added  to  the  price  until 
almost  the  last  moment — that  is,  apnrt  from  any  extraneous 
conditions  that  may  ailcct  tho  market.  Other  things  being 
equal,  prices  will  generally  put  on  a  fraction  at  the  end  of  the 
half-year,  but  it  is  a  hopeful  sign  that  dealings  have  been  on  a 
larger  scale  for  some  considerable  time  past,  and  it  is  always 
cheering  to  find  the  Stock  Exchange  (which  often  has  special 
sources  of  information)  taking  a  hopeful  view  of  the  outlook. 


In  the  beginning  of  the  week  the  tone  of  the  market  was 
dfcidedly  more  cheerful  than  it  has  been  fur  some  time  past, 
mainly  owing  to  the  Italian  victory.  This  encouraged  business 
in  nearly  every  section  of  the  "'  House,"  and  dealings  were 
larger  than  we  have  experienced  Recently,  the  daily  record 
S'ising  to  as  mucli  as  j.fxjo  markings.  The  Funds  have  shown 
consistent  strength,  and  substantial  fractions  have  been  added 
to  quotations.  Colonials  were  not  very  conspicuous  until 
toward-;  the  end,  when  the  New  .South  Wales  issue,  which  before 
it  was  announced  was  a  somewhat  depressing  influence,  rather 
helped  to  draw  attention  to  this  section.  Foreign  stocks  have 
been  fairly  well  supported,  and  Mexicans  and  Russians  have 
been  prominent  with  smart  advances,  the  former  owing  to  the 
improved  economic  conditions  which  are  now  said  to  prevail, 
and  the  latter  because  it  is  felt  that  a  more  stable  Government 
must  before  long  emerge   from  the  present  chaos. 

Home  Railways  liave  been  in  quite  respectable  demand,  no 
doubt  owing  to  the  approach  of  the  dividend  period,  and 
although  no  changes  of  importance  can  be  expected  in  the  half- 
yeaily  distribution'^,  the  fact  that  the  sto'-ks  have  now  almost 
a  full  >i'c  months'  interest  in  the  price  makes  them  look 
attriictive.  Nearly  everything  advanced,  and  the  strength  was 
maintained  right  up  to  the  end.  Americans  are  of  little  interest 
in  these  days,  but  one  or  two  railwaj-s  advanced,  and  there  was 
a  good  deal  of  support  forthcoming  for  International  Mercantile 
Marine.  Canadian  Pacifies  have  been  well  maintained,  and 
Grand  Trunks  showed  strength  in  anticipation  of  a  favourable 
settlement  with  the  Government,  but  they  closed  substantiall}' 
below  the  best.  Argentine  Railways  siso  started  well,  but  after- 
wards became  irregular,  and  mostly  shed  a  fraction  after  the 
first  spurt.  The  position  in  Argentina,  however,  seems  to  be 
Improving,  and  the  country's  fade  is  certainly  on  a  basis  which 
justifies  c)ptiruistio.  views. 

ISank  shares  gencr.iUy  have  shown  strength  wherever  quota- 
tions were  tested,  and  quite  a  number  of  the  leading  issues 
have  gained  .^  to  i.  Tn  the  Brewery  section  the  tone  has  been 
rather  irregular.  Watney,  Combe  deferred  fell  rather  sharjjly, 
but  picked  up  a  Irttle  at  the  finish,  while  the  others  which  had 
been  moving  upwards  reacted  on  an  ab.sence  of  .'ictive  .sup- 
port. On  balance  the  change?;  aie  not  very  impressive. 
Egypfi.nn  securities  were  firm,  and  land  shares  were  strong 
und(-r  the  lead  of  Hudson's  Bays,  which  advanced  smartly. 
Iron  and  .Steel  things  have  been  almost  consistent]}'  good,  with 
prices  advancing  concurrently  with  an  increase  in  business. 
Kxplosive  and  other  tshares  in  which  deals  and  bonuses  are 
pending  naturally  received  the  greatest  attention,  but  most  of 
the  other  active  shares  also  gained  moderate  fractions.  Ship- 
ping shares  were  in  demand,  and  F.  and  O.  deferred,  Royal 
Mails,  and  most  of  the  others  improved  Ihcir  position.  Among 
Industrials,  Textiles  were  prominent,  and  Associated  Cements. 
Coats,  English  .Sewing  Cotton,  and  a  few  of  the  other  promi- 
nent shares  were  in  active  dem.nnd.  Of  course,  the  market  is 
stimulated  by  the  niimerouiS  bonus  schemes  which  have  been 
announced  in  the  past  few  weeks,  ar.d  of  which  the  .stream 
doe?  not  seem  to  be  by  any  means  yet  dried  up. 

Oil  shares  have  been  active  and  strong,  with  Burmahs  taking 
the  lead  under  the  impression  that  a  handsome  distribution  of 
the  reserves  must  he  announced  before  very  long.  Most  of  the 
more  speculative  is=ues  also  advanced,  and,  although  there 
was  some  disappointment  with  the  Eobitos  report  to  begin 
with,  the  price  subsequently  recovered  when  it  was  seen  that 
the  falling  off  in  profits  is  due  to  purely  temporary  causes  and 
not  to  any  depreciation  in  the  productiveness  of  the  oilfield. 
Rubber  shares  have  benefited  by  the  recovery  in  the  price  of 
the  raw  material,  and.  especially  townrds  the  end,  the  tone 
was  much  stronger  than  it  has  been  of  late.  Nearly  all  the 
changes  have  been  in  favour  of  holders,  and  some  quite  notable 
gains  have  been  recorded.  At  the  same  time,  the  outlook  is 
still  regarded  with  some  uneasiness,  and  the  immediate  pro- 
spects of  the  industry  are  by  no  means  clear. 


LONDON    PRODUCE   MARKETS 

Although  no  appreciable  expansion  was  noticeable  in  the  volume 
of  business  passing  this  week,  prices  were  firm  in  most  instances, 
with  a  rising  tendency. 

Sugar. — Official  prices  remained  unaltered,  with  fair  allocations 
of  British  refined  goods. 

Coffee. — The  terminal  market  remains  idle  and  nominal,  but 
spot  parcels  met  with  fair  support  and  realised  steady  prices, 
especially  mild  liquoring  grades.  At  public  sale,  East  India,  bold 
greyish,  sold  at  1263.  ;  Uganda,  bold  common  greenish,  84s.  to 
89s  :  fair  brown  to  pood  pale,  92s.  to  96s. ;  peaberry,  83s.  to  92s.  ; 
Nairobi,  small  good  greenish,  io6s.  ;  middling,  115s.;  good  bold. 
iiSs.  to  iigs. 

Cocoa.  —  Business  continues  restricted  by  paucity  of  offers, 
there  being  a  steady  inquiry  at  graded  prices. 


Spice.  —  Pepper  again  dearer  with  a  good  demaitd.  I'ai- 
black  Singapore,  spot,  sold,  is.  g.Jd.  ;  Tellicherry.  is.  lojd. ;  and 
white  Muntok,  3s.  3d.  Cloves  quiet,  and  rather  easier.  Fair 
Zanzibar,  spot,  2S.  4jd.  Pimento  firm  with  sales  at  5^d  ;  and 
broken  Cassia,  85s.  Tapioca  firm  to  dearer.  Fair  flake,  spot, 
sold,  8d. ;  Penang,  fair  seed  pearl,  82s.  6d.  ;  and  medium  ditto, 
80s.     Fair  small  sago,  spot,  82s.  6d.  per  cwt. 

Rice  in  steady  support,  also  beans  at  regulation  values. 

Shellac. — Tone  steady,  with  sales  at  340s,  basis,  fair  freft 
second  orange,  spot. 

JRcBBER. — Sellers  showed  rather  more  reserve,  and  tendency  of 
prices  firmer,  but  irregular.  Plantation,  standard  crepe,  spot, 
sold,    2s,   2jd.,   2S.   2id.,  2S.    3d.,  and  2s.  ijd.  ;  July-December, 

CURRENT    PRICES    OF    CHIEF    ARTICLES. 
WEEK  ENDING    JUNB  18.  tgiS. 


Last 

Week, 


Thla 
Week. 


■nfar— per  owt., 
duty  35;8,  98  "^ 
polarisation 

Tate'a  Cubes 

Crushed 

Granulated  , .     . . 

Lyie's  granulated 

Foreign  granu- 
lated, first  mackf 
f.o.b.,  spot 

GermanCubef.o.b. 

French  Cube 

prompt 

Crystallised,  Wesi 
India 

Beet,    8S%    f.o.b 

Ita— pec  lb.,dutj 

I/-  fb. 
Indian  Pelioe 
Broken    ,, 
Orange    ,, 
Broken    ,, 
Pekoe    S^uobong 
Ceylon  Pekoe     . . 
Broken    ,, 
Orange    ,, 
Broken    ,,  .. 

Pekoe  Souchong 

Ooooa  —  per  owt. 

duty  6d.  per  lb. 
Trinidad — per  cwt 
Grenada  . ,  . . 
West  Africa..  .. 
Ceyloo  Plantation 
Guayaquil  . .  . 
OoITm — per    cwt 

duty  4S/- per  cwt 
Bast  India    ..     ,, 

lamatca 

Costa  Rica  ..     ,. 
ProvUioni— 

Buttar,  per  owl 
Australian  finest 
Argentine  . .  . . 
tclstl  Creameries 
Dutch  ditio..  .. 
Russian  finest  .. 
Paris  baskets 
Danish  finest  ,. 
Brittany     roils  — 

doi.lb 


BaooB — per  cwt. 

Irish      

Contineolal..  .. 
Canadian  ..  .. 
American  ..  .. 
flami — per  owt. 

Irish      

Canadian  . .  . . 
American     . .     . . 

Ohuu— perowt. 

Dutch 

Canadian  ..  .. 
English  Cheddar 
Wilts  loaf  ..  ,. 
New  Zealand 

Rice— per  cwt. 

Japan     

Rangoon  3  stars  . . 
Eggs— pec  130, 

English 

Irish      

Danish 


Spelter— 

G.O.B.  as  to  posi- 
tion     


Flour— per  sack. 
G.  R.  ex  Mill. 


4  9  3    4  9 

17  9  3  17  9 

17  9  3    17  <) 

17  9  3  17  9 


£    s.   d.     £  «.    d. 


nom. 
nom. 


3  17    9 
nom. 

s.  d. 

I  4 
I  4 
I  4 
I  4 
r  4 
I  4 
I  4 
I  4 
r  4 
1  4 

s.  d.  s.  d. 


I  o  90  0 


nom. 
nam. 


3  17    9 
nom. 


s.d.  s.  d 

I  4 

1  4 

I  4 

I  4 

■  4 

'  4 

I  4 

I  4 

«  4 

>  4 

s   d.  s.  d. 

S6  o  90  c 


79  0  85  0,  79  o  83  0 
55  o  65  0!  55  u  65  o 
t-S  o  100  0]  85  o  100  ci 
up  to  90  el  up  to  90  0 


iioo  135  0  iio-o  135-0 
80  0  160  a'  80-0  160-0 
IIOO  1370  iio-o  137-0 


352/ 

Govern 

353/ 

ment 

nom. 

price. 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 

nom. 

188/ 
173/ 

i6g/-l72/ 
169/-1&0/ 

nom, 
i62/-i65/ 
125/-165/ 

nom. 

nom. 

103/8-149/4 

nom. 

non;. 

s.    d. 
41     3 
36    3 


41  0-43  0 
37  6-38  0 
nom. 


£54-jf50 
44/3 


1S8/ 
nom. 
I74/-300/ 

174/-200; 

nom. 
167/-170/ 
119/-170/ 

nom. 
nom. 
I03/8-I49/4 
nom. 
nom. 


41    3 
36    3 


43  0-44  o 
37  0-38  o 
nom. 


£54  £50 
44/3 


Last 
Week. 


Wool— par  lb. 
Australian' 

Scouted  Merino| 
Scotired  Cr'ssbr'd 
Greasy  Merino  . . 
Greasy  Crossbred, 
t^ew    Zealanql 

(scoured)  Meriotr 
Greasy  Crossbred 
Cape  snow  white 

Indlarabbarp.lb 

Plantation,     Spot 
j    Crepe 

Goal— per  ton 

Durham,  best  .. 

Seconds       ..  .. 
East  Hartlepool..' 

Seconds       ..  ..' 

Steams,  best  ..1 

Seconds       ..  ..i 


£    ».  d 

nom. 
nom. 
nom. 
nom. 

nom. 
nom. 
nom 


0   3    3i 


nom. 
nom. 
nom. 
nom. 
33  6 
386 


d. 


Leail— pec  ton. 

English  Pig..     ..{     nom 

Foreign  solt,  net   !£39j-£38J 


QulckilHer— per; 

bottle  firsthand  {     nom. 


iTIn— pet  ton         ! 
'■  English  Ingots     .1       £33 
Do.    bacs         ..j       £33 
Standard  cash    ..'£328-£329 
Tin  Plates, pec  boil      nom. 

Ooppar— per  ton, 
English,     Tough, 

P«top      ..     ..j     nom. 
Best  Selected    . .  i  Ciio-r  133 

Sheets -''^   /,49 

Standard     ..    .-j^ilo-no} 

Jute— pet  ton.  i 
Native  firsts  for| 
shipment  j      nooi 


OIU— 

Unseed, per  too..! 

Rape,  crude  j 

Coit'nSeed.ocude 
PetcoleumOil,pei 
8  lbs.  ; 

Water  While      ..j 
Oil  Seeds, Linseed 
Calcutta— pel  ton 
Spot 


fee 

l(ioS 

i/iiS 


£37  10 
Rape     £29-10/30 


ilron — per  ton 
iCleveland  Cash  . . 

Tobacoo  —  duty, 
unuianufactureu 
3/3-10/4-!,  pec  lb. 
I  Viiginiaieat. 

Keuiucky  leaf    .. 

Latakia 

Havana 

Cigars,  duly  15/7 
per  lb. 


Turpentine— 

lAmerican  Spot 


Copra— per  ton 
Malabar       ..     ..j  46    0 

Ceylon '46    o 

If.M.S.  Singaporej  45  :o 
jF.M.    Straits     ..'.  45  10 


t  6  -3    I 

10-11 

nom. 
I  6-6    I 

3/  upds. 


118/ 


Thla 
Week. 


£  s.d. 

nom. 
nom. 
nom. 
nom. 

nom- 
nom. 
nom. 


o    2    3l 


nom 
nom. 
nom. 
nom- 
33  6 
38    6 

£     «.  d 
.    nom. 
£>94-£jH 


nom. 

£ii9'£i»j 

£uo-noi 


i/toj 
i/"4 


£37   '9 

£39-io£3*- 


t  S -3  S- 

I  0—:  6 
Qom. 

1  6-6  S 

3/  upds. 


116/ 


46  o 
46  o 
45  ro 
45  10 


2s.  3d.  to  2s.  3jd.  ;  October-December,  2S.  3jd.  to  2S.  4d.  Ribbed 
smoked  sheet,  spot  and  July,  2s.  i^d.  to  2S.  ijd.,  2S.  2d.,  and 
2s.  ijd.  Fine  hard  Para,  spot,  3s.  i^d.  ;  soft  fine,  3s.  iJd.,  buyers, 
and  ball  value,  is.  8d.  per  lb. 

Corn  (Mark  Lane). — There  was  a  fair  attendance  at  market  this 
week,  but  business  moved  quietly  owing  to  paucity  of  offers, 
while  confined  to  pressing  wants,  prices  remaining  at  a  steady 
level  for  all  descriptions.  Wheat :  Native  rules  at  77s.  gd.  per 
504  lbs.  Imported  descriptions  largely  nominal.  No.  i  Northern., 
Manitoba  quoted  82s.  4jd.  ;  No.  2  ditto,  also  hard  winter, 
80s.  gd.  ;  Australian,  83s.  6d.  to  85s.  6d. :  Indian,  87s.  to  88s.; 
and  La  Plata,  82s.  7jd.  per  496  lbs,  all  landed  terms.  Flour: 
G.R.,  44s.   3d.   per   sack,   ex   mill,  while   imported    grades   were- 


636 


^be  Jnvestors'  IReview. 


June  29,  19 18. 


tiominal.  Barley:  Native,  62s.  gd.  to  63s.  gd.;  Californian, 
93s.  to  g5s.,  ex  quay,  448  lbs.;  Canadian,  8is.  to  85s,;  and  American 
malting,  82s.  6d.  per  400  lbs.,  landed.  Oats  :  Native,  483.  6d,  per 
336  lbs.  :  American  white  clipped  No  2,  6is.  gd.  to  62s.  6d.  ; 
Oinada  Western  No.  2,  63s.  6d.,  ex  quay  terms,  320  lbs.  Maize: 
Yellow  South  African,  79s.  6d.  ;  American  mixed,  8is.  3d.  to 
81S.  6d.,  landed. 

Cotton  (from  our  Manchester  correspondent). — The  firm  tone 
in  the  market  has  been  maintained  during  the  past  week,  but  the 
difficulties  in  arranging  transactions  do  not  diminish.  Demand 
has  again  been  in  excess  of  supply.  With  so  few  spindks  and 
looms  running,  and  the  greater  portion  of  the  output  required 
for  war  purposes,  very  little  fresh  business  is  sought  after 
by  spinners  and  manufacturers,  but  for  anything  wanted 
very  full  rates  have  had  to  be  paid.  Delivery,  rather  than 
price,  however,  has  been  the  stumbling  block.  Good  re- 
ports continue  to  be  received  with  reference  to  the  new  American 
cotton  crop,  and  the  prospects  for  a  good  yield  are  dis- 
tinctly healthy.  Operations  (in  piece  goods  have  been  largely 
confined  to  heavy  materials  for  the  Government,  and  fine  strong 
cloths  for  aircraft  purposes,  although  a  moderate  turnover  has 
transpired  for  the  minor  outlets  of  Java,  Singapore,  and  South 
America.  No  new  development  can  be  recorded  with  regard  to 
trade  for  India  and  China,  and  many  manufacturers  who  previ- 
ously made  standard  goods  for  those  markets  have  now  turned 
their  machinery  on  to  other  work.  Fancies  have  been  in  active 
request  for  the  home  trade.  The  tendency  of  prices  in  American 
and  Egyptian  yarns  has  again  been  against  buyers,  and  spinners 
remain  in  a  very  strong  position.  Steady  buying  has  occurred  in 
counts  suitable  for  aeroplane  cloths.  Extraordinarily  high  prices 
have  been  paid  for  certain  descriptions  for  early  delivery,  and  it 
seems  as  though  the  top  in  Talues  has  not  yet  been  reached. 
It  is  recognised  in  many  quarters  that  this  high  level  of  values  is 
dangerous. 


DIVIDENDS    ANNOUNCED. 

Anaconda  Copper  Mining  Co. — $2  per  share,  payable 
August  26.  A  year  ago  the  same  with  an  additional  special 
dividend  of  50  cents  per  share. 

Anglo-iVmerican  Oil. — Final  3s.  per  share,  free  of  income-tax, 
making  total  of  30  per  cent,  for  1917-  Previous  year  dividend 
was  25  per  cent. 

W.  and  T.  Avery. — Final,  lo  per  cent,  on  ordinary  shares  for 
year  ended  March  31,  191S,  making  15  per  cent,  for  year. 

Australian  Agricultural  Co. — 5s.  per  share,  free  of  tax, 
making  with  interim  paid  in  March  gs.  6d.  per  share,  free  of 
tax,  for  1917,  same  as  for  igi6. 

Barclay,  Perkins  and  Co. — 12s.  per  share  on  preference 
capital.  This  is  equivalent  to  6  per  cent,  on  original  preference 
capital,  and  will  pay  arrears  up  to  December  31,  1914.  A  year 
ago  10  per  cent,  (equal  to  4  per  cent,  on  original  preference 
capital),  which  paid  arrears  up  to  June  30,  1913. 

Brakpan. — Interim,  20  per  cent.  (4s.  f;er  .share),  against  22J4 
per  cent. 

Braunston  (Malay)  Rubber  Estates. — Interim,  5  per  cent,  (less 
tax),  same  as  a  year  ago. 

Cassel  Coal. — Interim,  5  per  cent.   (is.  per  share). 

Clarke,  Chapman  and  Co. — Interim,  2s.  per  share,  less  tax  at 
5s.  gd.   in  the  £,  to  be  paid  July  10. 

City  and  Suburban  Gold  Mining  and  Estate  Co. — No.  37  of 
i^  per  cent.  (is.  6d.  per  share),  against  5s.  a  year  ago.  This 
is  subject  to  deduction  of  income-tax  from  British  shareholders 
at  a  rate  to  be  announced  later. 

Devon  Estates  (Malacca). — Second  quarterly,  2%  per  cent., 
payable  on  June  28. 

Distillers  Co. — Final  on  ordinary  shares  of  12s.  per  share, 
free  of  tax,  making  10  per  cent,  for  year  ;  reserve  funds,  ;^6o,ooo ; 
forward,  ;^65,357. 

Deebook  Dredging. — No.  3  of  is.  per  share,  less  tax,  payable 
on  July  18. 

Eastern  Telegraph. — Quarterly  interim,  1%  per  cent,  on 
ordinary  stock,  free  of  tax ;  the  same. 

Geduld  Proprietary  Mines. — No.  8,  of  5  per  cent.  (is.  per 
share),  same  as  a  year  ago. 

Goldfields  American  Development  Co. — Interim,  at  rate  of 
5  per  cent,  per  annum,  less  tax,  for  year  ending  January  31. 
This  is  company's  first  dividend. 

Government  Gold  Mining  Areas  (Modderfontein)  Consoli- 
dated.— Interim,  12%  per  cent.  (2s.  6d.  per  share). 

Gopeng  Consolidated. — gd.  per  share,  less  tax,  against  8d., 
payable  on  July  6. 

Henderson's  Transvaal  Estates. — 6  per  cent.,  less  tax,  for 
year  ended  March  31,  calculated  on  amounts  for  time  being 
paid  up,  or  credited  as  paid  up,  on  shares. 

Johannesburg  Consolfdated  Investment  Co. — 5  per  cent.,  free 
of  tax,  for  year  ending  June  30 ;  the   same. 

John  Knight. — Usual  interim  on  ordinary  shares  at  rate  of 
■6  per  cent,  per  annum  for  half-year  ended  May  31,  payable  on 
July  15.  : 

Johore  Rubber  Lands  (1913). — Final  for  1917  of  5  per  cent., 
less  tax,  making   10  per  cent,  for  year,  against  15  per  cent. 

Langlaagte  Estate  and  Gold  Mining  Co. — Interim  5  per  cent. 
(is.  per  share) ;  the  same. 

Leeuwpoort  (African  Farms)  Tin  Mines. — 10  per  cent.,  pay- 
able to  all  shareholders  registered  June  29,  against  5  per  cent. 

Modderfontein  Deep  Levels. — No.  7  of  47J4  per  cent.  (gs.  6d. 
per  share),  against  40  per  cent,  a  year  ago. 

C.  and  E.  Morton. — At  rate  of  6  per  cent,  per  annum  on 
participating  preference  and  ordinary  shares,  for  half-year  to 
June  30. 


Minerals  Separation. — Interim  at  rate  of  5s.  per  share,  or 
25  per  cent.,  less  tax,  for  year  ending  December  31,  payable  on 
July  25.     Previous  distribution  was  50  per  cent,  in  January  last. 

New  Unified  Main  Reef  Gold  Mining  Co. — Interim  5  P^r 
<ent.  (is.  per  share),  against  7J  per  cent. 

Parke's  Drug  Stores. — Interim  on  ordinary  shares  for  half- 
year  ended  March  31  at  rate  of  6  per  cent,  per  annum,  free  of 
tax ;  the  .same. 

Philadelphia  ("o. — Quarterly  ij  per  cent,  on  common  stock, 
payable  July  31. 

Rand  .Selection  Corporation. — Interim  12J  per  cent.  (2s.  6d. 
per  share),  same  as  a  year  ago. 

Rohilkund  and  Kumaon  Railway  Co. — Interim  for  half-year 
ended  March  31  of  3  per  cent.,  together  with  bonus  of  i  per 
cent.,  or  4  per  cent,  in  all,  on  ordinary  stock,  to  be  paid  less 
tax  at  rate  of  3s.  gd.  in  the  £  on  July  29,  same  as  a  year  ago. 

Segamat  (Johore)  Rubljer  Estates. — Final  for  1917  of  5  per 
rent.,  less  tax,  making  15  per  cent,  for  year,  again.st  20  per  cent. 
for  1916. 

Talisman  Consolidated. — Further  is.  per  share,  payable  on 
July  22,  same  as  preceding  distribution. 

Telegraph  Construction  and  Maintenance  Co. — Interim  5  per 
cent.  (i2s.  per  share),  free  of  tax,  same  as  a  year  ago. 

Van  den  Berghs. — Interim  10  per  cent,  (actual)  on  ordinary 
shares.     Warrants   will  be  despatched  on  July   13. 

Vt.n  Ryn  Deep. — Interim  22^  per  cent.  (4s.  6d.  per  share), 
against  20  per  cent. 

Victoria  Falls  and  Transvaal  Power  Co.— On  preference 
shares,  final  4  per  cent.,  less  tax,  making  10  per  cent,  for  1917; 
and  3  per  cent.,  less  tax,  for  year  ending  December  31,  igi8. 
On  ordinary  shares  5  per  cent.,  less  tax,  for  igi7,  same  as  for 
igi6. 

Vryheid  (Natal)  Railway,  Coal,  and  Iron  Co.— 5  per  cent. 
for  year  ended  January  31,'  igi8 ;  ;^2o,ooo  to  reserve,  ;f  28,563 
forward. 

Welsbach  Light  Co.— After  allowing  for  excess  profits  duty, 
which  is  likely  to  be  consideraWe,  10  per  cent.,  less  tax,  for  year 
ended  March  31.     Previous  year  5  per  cent,  was  paid. 

World  Marine  and  General  Insurance  Co. — Interim  2S.  a 
share,  being  at  rate  of  5  per  cent.,  free  of  tax. 

Witwatersrand  (Jold  Mining  Co. — Interim  m  per  cent.  (2?. 
per  share),  against  20  per  cent. 


OILFIELDS     PRODUCTION. 

Anglo-Egyptian  Oilfields. — Week  ended  June  16  : — Gemsah, 
22  tons  (against  21  tons) ;  Hurghada,  4,068  tons  (against  4,633 
tons). 

Baku    Russian    Petroleum.— Gross  crude  oil    for   week  ended 

May  2:;  was  ^i,^i;o  poods.  1 

XTnited  British  Oilfields  of  Trinidad.- 1,022  tons  for  week 
ended  June  19. 


Ansvt^eps  to  Coppespondents. 


♦,•  A  Key  to  these  Answers  will  be  posted  early 
each  week  for  a  subscription  of  ONE 
GUINEA  per  annum,  lis.  for  six  months,  or 
Bs.  9d.  for  three  months. 

Deposits  against  future  queries  may  be  lodQefi 
with  the  Publisher. 

A  Holder. — Our  opinion  inay  not  be  worth  much  as  a  guide, 
but  looking  at  the  present  difliculties  and  the  properties  as 
well  we  think  it  would  be  prudent  to  sell  where  profits  yet 
exist,  or  \\  here  losses  are  not  serious,  for  the  probability  is  that 
for  some  time  to  come  prices  will  tend  to  sag.  But  the  indus- 
try is  not  worn  out  yet  by  any  means. 

Small  Investor. — Ves,  the  company  owns  a  good,  well- 
managed  property,  and   has  substantial  reserves. 

H.  P.  M. — The  shares  of  the  Home  company,  although  the 
premium  is  high.  The  others  have  a  very  uncertain  after-the- 
war  future. 

Scotus. — All  stand  fairly  high,  but  "Oils"  seem  the  best 
from  an  investment  point  of  view.  You  must  not  forget  work- 
ing costs  are  likely  to  be  heavy  for  a  long  time  to  come,  but 
this  company's  particular  product  should  always  command  a 
ready  sale. 

Northgate. — It  is  handicapped  by  high  cost  of  fuel,  but  it 
.serves  a  good  district,  with  possibilities  of  expansion.  The 
shares  are  a  reasonable  purchase  at  the  price  you  mention. 

B.  J.  W. — None  of  your  holdings  are  likely  to  pay  dividends 
for  some  time.  They  have  still  difficulties  to  overcome,  though 
the  outlook  is  distinctly  brighter.  There  are  naturally  risks 
attaching  to  the  suggested  purchase,  but  not  unreasonable  ones. 
You  might  make  a  fair  profit,  and  in  the  meantime  dividends 
are  being  paid.     The  company  is  in  strong  hands. 

Dora. — The  stock  is  a  fair  speculative  holding,  but  if  you 
only  bought  to  make  a  moderate  profit,  sell.  There  can  hardly 
be  a  continued  rise. 

T.  J.   F. — It  is  quite  a  fair  offer,  so  you  might  accept. 

A.  C.  D. — You  are  not  allowed  to  take  more  than  ;£5oe 
nominal  of  the  War  Certificates  for  one  account,  but  you  could 
divide  the  money  if  you  so  desire.  The  dividends  on  the 
5  per  cent.  War  Bonds  can  be  reinvested  automatically  by 
instructing  the  Bank  of  Engl^pd  to  do  so. 


June  29,  1918. 


Ube  Jnveators'  IReview. 


637 


Tea,  Oil  and   Rubber. 


Conditions  have  not  greatly  altered  in  the  Rubber  market, 
but  a  more  cheerful  feeling  has  prevailed.  Both  in  the  Stock 
Exchange  and  in  Mincing  Lane  quotations  have  improved,  and 
the  price  of  the  commodity,  after  recovering  to  as.  2%d.,  closes 
only  a  fraction  under  that  figure.  Share  dealings  have  not  been 
particularly  active,  buf  liuyers  have  been  more  in  evidence, 
although  it  is  still  true  that  holders  who  have  large  profits 
on  paper  show  a  marked  inclination  to  turn  part  of  them  into 
cash.  The  better  feeling  recently  is  probably  mainly  due  to 
the  further  information  received  with  regard  to  the  restriction 
of  imports  into  the  United  States.  The  limit  of  25,000  tons 
for  the  three  months  to  the  end  of  July  does  not  necessarily 
mean  that  only  100,000  tons  (against  last  year's  157,000  tons) 
will  be  allowed  for  12  months;  the  position  will  be  reviewed 
at  the  end  of  each  quarter.  But  it  is  officially  estimated  that 
the  stocks  in  the  country  amount  to  over  87.000  tons,  and  a 
great  deal  of  this  will  have  to  be  cleared  off  before  increased 
shipping  facilities  will  be  granted.  To  what  extent  these 
constitute  bull  or  bear  points  everyone  may  decide  according 
to  his  own  predisposition. 

It  has  been  confidently  anticipated  for  some  time  that 
the  Burmah  Oil  Co.,  Ltd.,  would  this  year  capitalise 
some  portion  of  its  enormous  reserves,  and  the  divi- 
dend announcement  just  made  confirms  the  market  view.  It  is 
proposed  to  create  052,500  new  shares,  and  to  issue  them  as  a 
bonus  in  the  proportion  of  one  new  for  every  two  existing 
ordinary  shares.  That  represents  a  bonus  of  from  £2  los.  to 
£^  per  share  on  the  present  market  valuation,  but  the  company 
is  in  such  an  enormously  strong  position  that  it  can  afford  to 
■do  things  in  that  handsome  manner  without  being  seriously 
inconvenienced.  The  dividend  and  bonus  of  25  per  cent,  now 
-declared  make  32 J4  per  cent,  for  the  year  against  30  per  cent., 
and  ^300,000  is  placed  to  reserves,  while  ;^i, 384,000  is  carried 
forward,  subject  to  e.xcess  duty  estimated  at  ;^i  ,250,000.  It  is 
a  wonderful  record,  but  we  shall  go  into  the  figures  more  closely 
when  the  complete  accounts  are  available. 


ABRIDGED     PROSPECTUS. 

The  LIST  for  both  CONVERSION  and  CASH  Applications  will  be  CLOSED 
•      on  or  before  THURSDAY,  the  nth  July,  191S. 

NEW     SOUTH     WALES    GOVERNMENT 
5*%    CONVERSION    LOAN  (".'X')  1922-1932 


LoBiTOS  Oilfields,  Ltd.— Last  year  the  production 
.amounted  to  91,548  tons,  an  increa.se  of  4,340  tons,  while  the 
nett  operating  income  was  ;^i2,6oo  higher  at  ^(^122. 000.  How. 
ever,  ;^"i3,ooo  more  at  £()-;,ooo  is  written  off  for  depreciation, 
.  and  Peruvian  taxes  required  ;!f3,ooo  more  at  £i2,j(;a,  with,  the 
result  that  the  nett  oil  profits  are  ;£3,ooo  down  "at.  £^z,2.oo.  That 
is  satisfactory  enough,  but  the  income  from  steamers  was  only 
jf7,ioo,  a  decrease  of  ^^38,000,  and  there  was  a  lo?s  on  work. 
i"g  of  £^j-°°-  '""s  against  a  profit  of  ;^3o,ooo.  Interest  pro- 
duced ;^7,ooo  more,  and  income-tax  absorbed  ;f8,ooo  less,  so 
ihe  total  nett  profit  of  ^^24,650  is  only  about  half  the  amount 
earned  in  1916.  Consequently  the  dividend  has  to  be  cut 
down  from  10  per  cent,  to  5  per  cent.,  and  ^10,000,  or  ^'5,000 
less,  is  placed  to  reserve,  leaving  £m<7°o  to  be  carried  for- 
ward, practically  the  same  as  the  amount  brought  in.  The 
shipping  business  will  revive  when  conditions  are  more  favour- 
able, and,  meantime,  it  is  satisfactory  that  the  oilfield  con- 
tinues to  yield  so  handsomely.  In  addition  to  ;£i  17,000  in  War 
Loans,  the  company  has  ;£2o,4oo  cash  in  hand,  and  the  financial 
position  looks  thoroughly  sound. 

SiALANG  Rubber  Estates,  Ltd.— Year  to  January  31. 
Capital  ^£200,000  in  £\  shares.  Reserves,  ^87,600.  Output. 
•,387,000  lbs.,  increase  155,000  lbs.  ;  average  price  2S  5.5od., 
against  2s.  6.i5d.  ;  nll-in  ctist  is.  3.6id.,  against  is.  i.76d.  The 
crop  was  harvested  from  4,294  acres  out  cf  a  total  of  6,290 
planted,  and  the  average  yield  was  323  lbs.  per  acre,  which  can 
be  considerably  increased  when  desired,  but  for  the  current 
year  the  output  is  not  to  exceed  1,067,000  lbs.  Xett  profits 
amounted  to  ^^84,100,  a  decrease  of  ^2,400,  but  ;^4,6oo  more 
was  brought  in  after  pvaing  vC4o,6oo,  against  ;^i4,ooo,  for  ex- 
cess duty.  The  final  dividend  is  8  per  cent.,  making  16  per 
■cent,  for  the  year,  .igainst  18  per  cent.,  and  after  again  placing 
;f5,ooo  to  development  res.3rve,  ^52,000,  or  ;^4,2oo  more,  is 
carried  forward  subject  to  excess  duty,  which  is  estimated  at 
;^42,ooo.  During  the  year  325  acres  were  planted,  and  there 
are  still  600  acres  available  for  cultivation  in  addition  to 
2,500  acres   of  building  sites,   waste  lands,  &c. 

Malayat.am  RiBDER  .4XD  PRODtJCE  Co.,  LTD.— Year  to  Decem- 
■ber  31.  Capital  ;f5oo,oa5  in  ^i  .shares;  reserve,  ;if 40,000.  Out- 
put of  rubber  1,354,000  lbs.,  increase  337,000  lbs.  ;  average  price, 
2S.  o.42d.  against  2S.  6.39d.  ;  cost  f.o.b.  11.73d.  against 
IS.  I. Old.  Gross  proceeds  /i62,oof),  an  increase  of  ^^21,000. 
Output  of  tea  1.478,000  lbs.,  increase  9,000  lbs.  ;  average  price, 
6.62d.  against  9.23d,;  cost  f.o.b.,  6.72d.  against  6.89d.  Gross 
proceeds  .^54.300,  a  decrease  of  /;22,4oo.  It  will  be  seen  that 
the  tea  was  marketed  at  an  actual  loss,  and  the  nett  profits  for 
the  year  are  /i6,ooo  down  at  ;f5q,i6o,  but  ;^io,ooo  more  was 
brought  in.  The  dividend,  however,  is  reduced  from  10  per  cent, 
to  8  per  cent.,  and  after  again  placing  / 15,000  to  development 
reserve  the  carry  forward  is  ;^4,ooo  higher  at  /2o,52o,  subject 
to  excess  duty,  which  is  estimated  at  jf^.ooo.  For  the  current 
year  the  restricted  rubber  output  is  estimated  at  1,500,000  lbs., 
and  tea  at  i. 800,000  lbs.,  and  there  is  rea.son  to  hope  that  the 
results  in  this  case  will  be  more  favourable  next  time. 


Issue    of    £3,OOOiOOO. 

Offir  of  Conversion  to  Holders  of   outstanding  £5,131,477   New  South  Wales 
Government  3^'u  Inscribed  Stock  maturing  1st  September,  ItlS. 

Price  £100  par  cent 

Interest  payable  1st  May  and  ist  Novemlier. 

Interest  payment  of  £1  2S.  per  cent,  payable  ist  November,  1918. 

Principal  repayable  at  par  on  the  ist  November,  1932,  theGovernment  hrivmg  the 

option  ot  redemption  in  whole  or  in  part,  at  par,  on  or  after  ist  November,  1922, 

on  giving  three  months'  notice. 
Thp  Government  of  New  South  Wales  having  complied  with  the  requireniems 
of  the  Colonial  Stock  Act,  1900,  as  announced  m  the  "  London  Gazette      ot  tne 
:9lh  March,  1918,  Trustees  may  invest  in  this  Inscribed  Stock  subject  to  the 
restrictions  set  forth  in  the  Trustee  Act,  1893. 

THE  LONDON  GOUNTV  WESTMINSTER  AND  PARR  8  BANK  MMITEO. 
notiBes  that  the  Government  of  New  South  Wales  ofters  to  the  holders  ot 
:f5,m,477  New  South  Wales  Government  3}  per  cent.  Inscribed  Stock  due  isl 
September,  191S  (to  an  amount  sufficient  to  make  up  with  the  cash  applications 
the  total  of  £3,000,000),  conversion,  in  whole  or  in  part,  into  an  equal  amount  ot 
New  South  Wales  Government  5J  per  cent.  Inscribed  Stock,  1922-1932.  on  ttte 
following  terms : — 

Holders  to  receive  on  completion  of  conversion  a  cash  payment  of  £1  12s.  5d 
per  cent.(less  tax),  being  the  difference  between  £1  15s.,  the  interest  en 
the  3*  per  cent.  Stock,  and  2s.  7d.  the  interest  on  the  instalments,  to  ist 
September,  1918.  An  interest  payment  of  £1  2s.  per  cent,  will  be  made 
ist  November,  igl8.  ... 

Holders  of  the  3*  per  cent.  Stock  exercising  the  o'lion  to  convert  will  re- 
ceive preferential  allotment,  and  must  lodge  the  prescribed  form  01 
assent  with  the  Bank  of  England,  i;.C.2. 
The  Treasury  has  been  consulted  unrfer  the  notification  of  the  i8th  January, 
1915,  and  raises  no  objection  to  the  issue.  •        j 

New  South  Wales  Debentures  and  Stock  domiciled  in  London  are  not,  aiia 
will  not  be,  subject  to  Income  Tax  in  New  South  Wales,  or  to  death  duties  in 

that  State.  ,  v   „ ,~  .     -  1 

The  -.tockwill  be  inscribed  in  accordance  with  the  provisions  of  the  Colonial 
Stoclc  Act,  1877,"  4oand4i  Vicf.cap.  59,  in  ihebooksof  the  New  South  Wales 
Government  sj  per  cent.  Stock,  1922-1952,  kept  by  the  London  County  West- 
minster and  Parr's  Bank  Limited,  Lothburv,  and  will  be  transferable  at  that 
Bank  free  of  stamp  duty.  Interest  thereon  will  be  payable  by  Dividend  Warrants, 
which  will  be  transmitted  by  post  at  the  Stockholder's  risk. 

THE  LONDON  COUNTY  WESTMINSTER  AND  PARR  S  BANK  LIMITED 
is  authorised  to  offer,  for  subscription  in  cash,  New  South  Wales  Government 
i%  per  cent.  Debentures,  1922-1932  (convertible  into  Inscribed  Stock  at  any  time 
up  to  the  14th  September,  1918),  'to  an  amount  sufficient  to  make  up  with  the  34 
per  cent.  Stock  converted  the  total  of  £3,000,000,  at  £100  per  cent.,  payable  as 
follows  :— 

£5  per  cent,  on  application. 

£95        ,,        ,,    26th  August,  1918, 

£100 

The  debentures,  which  wiir  be  issued  in  denominations  of  £100,  £500  and 
^1,000,  will  be  payable  to  Bearer,  and  the  Interest  thereon  will  be  paid  halt- 
yearly  at  the  London  County  Westminster  and  Parr's  Bank  Limited,  41,  Loth- 
bury,  E.C.  2,  bv  Coupons  due  ist  May  and  ist  November.        ,    ,,    .  , 

The  revenues  of  the  State  of  New  South  Wales  alone  are  liable  in  respect  ot 
this  Stock  and  the  dividends  thereon,  and  the  Consolidated  Fund  of  tlie  United 
Kingdom  and  the  Commissioners  of  His  Majesty's  Treasury  are  iiot  directly  or 
indirectly  liable  or  responsible  for  the  payment  of  the  Stock  or  of  the  Dividends 
thereon,  or  for  any  matter  relating  thereto.— 40  and  41  Vict.,  cap.  59,  sec.  19. 

Cash  applications  on  the  form  prescribed  will  be  received  at  the  London 
County  Westminster  and  Parr's  Bank,  Limited,  Lothburv,  and  must  be  lor 
multiples  of  £ico,  and  be  accompanied  by  a  deposit  of  £5  Per  cent,  on  the 
nominal  amount  applied  for. 

Payment  in  full  may  he  made  on  the  22nd  July,  1918,  or  on  any  subsequent 
day,  under  di^count  at  the  rate  of  4  per  cent,  per  annum.  ,       ,     •      ^ 

Scrip  Certificates  to  Bearer  in  respect  of  Cash  applications  may  be  obtained 
on  or  alter  the  6th  August,  igi8;  a  Coupon  fcr  £1  2S.  per  cent.,  being  interest  on 
instalments,  payable  ist  November,  1918,  will  be  attached  thereto.  The  Certifi- 
cates when  fully  paid  will  be  exchangeable  for  the  definitive  Bonds  when 
received  from  the  Slate,  or  ihcy  may  be  converted  into  Inscribed  Stock  without 
charge  on  or  before  the  14th  September,  igi8,  in  which  case  the  Coupon  must 
be  suurendered,  and  the  amount  will  be  paid  by  Dividend  Wsrrant. 

Due  notice  will  be  given  when  the  Debentures  are  ready  for  delivery. 

Prospectuses  can  be  obtained  at  the  London  County  Westminster  and  Parr's 
Bank  Limited,  41,  Lothbury,  E.C. 2;  21,  Lombard-street,  E.C.3; 
4,  Bartholomew-lane,  E.C. 2,  or  at  any  of  the  Branches  of  the  Bank;  at  the 
Ulster  Bank  Limited,  Belfast,  and  Branches  of  that  Bank,  and  of  Messrs. 
R.  Nivis  n  and  Co.,  Bank  Buildings.  Princes-street,  E.C.2. 

Forms  for  conversion  can  be  obtained  at  the  Bank  of  England,  E.C.2. 

London  County  Westminster  and  Parr's  Bank  Limited, 
Head  Office, 

41,  Lothbury,  London,  E.C. 2, 
28th  June,  1918. 

THIS  FORM  MAY  BE  USED. 

No 4.6. 

FORM  OF  APPLICATION  FOR 

NEW    SOU7H    WALES    GOVERNMENT    B|  %    DEBENTURES 

(Second   Issue),  1922-1932. 

Convertible  into  5J  per  Cent.  Inscribed  Stock  at  any  time  up  to  the 

14th  September,  1918,  wiihout  cliarge 

To  the  LONDON  COUNTY  WESTMINSTER  AND  PARR'S  BANK 
LIMITED. 

Gentlemen, — I/we  hereby  apply  for  £ 

say • of  the  New  South  Wales 

Government  5I  per  Cent.  Loan,  1922-1932  (Second  Issue:,  according  to  the 
Prospectus  of  the  28th  June,  1918,  and  undertake  to  pay  £100  for  every  £100  of 
Debentures,  and  to  accept  the  same  or  any  less  amount  that  may  be  allotted  to 
me  us,  and  to  pay  for  the  same  in  conformity  with  the  terms  of  the  said 
Prospectus. 

I/we  enclose  the  required  deposit  of  £ ,  being  £5  per  cent,  on  the 

Nominal  Amount  applied  for. 

NAME 

(Mr.,  Mrs.,  or  Miss) 

ADDRESS    

1918. 

N.B. — Applications  must  be  for  multiples  of  £100,  and  must  be  accompanied 
by  the  amount  of  Deposit  thereon. 


638 


^be  Jnvestocs'  IRevtew. 


June  29,  1918. 


COMPANY  MEETINGS. 


THE  CENTRAL  MINING  AND   INVESTMENT 
CORPORATION,   LTD. 

The  13th  ordinary  ycneral  meeting;  of  the  Central  Mining 
and  Investment  Cor[K)ration,  Ltd.,  was  held  in  the  txjard  ro^ii 
at  No.  I,  London  Wall  lUiildings,  E.G.,  on  Thursday,  June  27, 
1918.     Sfr  Lionel  Phillips,   liart.,  presided. 

The  Sc<  retary,  Mr.  J.  L.  Siddall,  having  read  the  notice 
convening  the  meeting,  and  also  the  auditors'  report,  the 
Chairman  addressed  the  meeting   as   follows  : — 

Gentlemen, — Before  I  address  you,  I  desire  to  apologise  for 
the  absence  of  our  French  colleagues.  All  thrf«  of  them,  un- 
fortunattly,  art  prevented  from  coming,  two  of  them  because 
they  occupy  very  important  Government  [josts,  and  the  third 
being  in  the  French  Army.  I  also  have  to  express  regret  that 
my  colleague  Major  Ffennell  is  not  able  to  come  for  the  same 
reason,  namely,  his  military  duties. 

This  is  the  fourth  year  that  I  have  presided  at  your  annual 
meeting  to  review  the  position  and  give  you  an  aci</unt  of  our 
stewardship.  Every  year  we  have  all  hoped  that  the  war  would 
be  over  before  the  next  gathering,  but  in  that  we  have  been 
disappointed,  and.  although  we  feel  confident  as  to  the  final 
result,  the  time  of  its  achievement  is  still  indefinite.  Neither 
the  length  of  this  most  terrible  of  all  wars  nor  its  ravages 
could  ever  Ijave  been  pictured  by  the  most  highly  imaginative 
person,  nor  is  it  in  human  power  to  gauge  its  far-reaching 
consequences  even  now.  T  am  building  my  address  on  this 
foundation  because,  while,  on  the  one  hand,  the  sacrifice  of 
life  is  an  ever-present  horror,  it  is  necessary,  on  the  other,  in 
reviewing  financial  affairs  in  such  times  to  keep  in  mind  the 
appalling  and  inestimable  material  destruction  involved. 
Restoration  and  reconstruction  after  the  conflict  will  tax  all  the 
thought,  skill  and  industry  of  at  least  a  generation. 

It  behoves  us  to  conserve  our  re.sources,  to  put  a  modest 
value  upon  our  assets,  and  to  lend  all  that  we  possibly  can  to 
the  State.  Those  are  the  principles  upon  which  the  board  has 
shaped  its  policy,  and  in  consequence  3'ou  will  not  find  any 
startling  changes  in  our  balance-sheet. 

Capital  account  is  unchanged.  Amount  due  to  creditors, 
,!f 3,500,000,  has  diminished  by  jf  290,000,  a  .small  change  holding 
the  total  .sum  in  view.  Approximately  that  amount  was  invested 
by  the  companies  with  which  we  areassociated  during  last  )'car 
in  5  per  cenf.  War  Loan,  and,  as  our  own  holding  in  Govern- 
ment securities  of  longer  currency  than  Treasury  bills  has  risen 
^y  ^207,000  to  ^i,if)0,ocKj,  the  decrease  of  £43o,o<xi  in  Treasury 
bills  is  more  than  made  up.  These  figures  show  our  desire  to 
assist  as  far  as  we  can.  But  there  is,  of  course,  a  limit  as  to 
the  extent  to  which  we  can  tie  up  the  funds  at  our  disjjosal,  for, 
like  all  other  banking  businesses,  we  are  bound  to  keep  large 
amounts  in  a  liquid  st:ite.  Due  regard  for  our  commitments 
must  regulate  our  finan<ial  dispositions. 

Investment  securities,  debtors,  loans  and  cash  amount  to 
;^4, 357,000,  and.  after  deducting  all  liabilities,  vou  will  observe 
that  the  readily  realisable  working  capital  has  been  further 
added  to  during  the  year.  When  stable  conditions  return  these 
funds  will  be  available  for  more  active  iise.  Meanwhile,  I  think 
we  are  well  advised  to  pursue  a  conservative  policy  of  a  pre- 
paratory kind,  -which  does  not  mean  that  we  are  not  investi- 
gating new  business  or  not  taking  limited  risks  in  anticipation 
of  the  happy  day  when  confidence  and  general  conditions  may 
justify  a  bolder  course  of  action. 

Our  large  shareholdings  in  South  Africa  and  similar  invest- 
ments elsewhere  constitute  our  permanent,  if  fluctuating,  stock- 
in-trade.  They,  include  interests  not  vet  revenue  producing 
which  gradually  mature  and  supplement  or  take  the  place  of 
others  that  drop  out.  The  total  revenue  derived  from  these 
holdings,  taking  full  account  of  the  amortisation  of  wasting 
assets,  brings  us,  I  am  glad  to  say,  a  steady  vield  commen- 
surate with  their  character. 

.-Vt  the  beginning  of  the  year  under  review  gold  production 
in  the  Transvaal  had  reached  high-water  mark,  and  general 
prosperity  prevailed  in  South  Africa.  In  England  there  was 
an  abundance  of  money,  either  on  deposit  with  banks  or  in 
circulation,  a  condition  which,  owing  to  the  continued  activity 
of  war  industries,  prevails  to-day,  though,  verv  properly,  funds 
available  for  permanent  investment  are  now  to  a  greater  extent 
diverted  to  the  various  War  I^an  and  W'ar  Bond  issues. 
These  circumstances  had,  for  a  short  time,  a  favourable  effect 
on  the  prices  of  many  of  your  holdings,  but  business  became 
restricted  very  .soon  and  the  stock  market  weaker,  a  tendency 
which  has  .since  been  much  accentuated  owing  to  »he  difficulties, 
which  have  steadily  grown,  in  carrying  on  work  at  the  mines. 
On  broad  lines  these  are  the  features  which  had  had  an 
influence  on  our  transactions,  and  the  present  outlook,  which 
must  be  described  as  serious  as  far  as  the  gold  mining  industry 
is  concerned,  has  had  a  close  bearing  upon  the  final  preparation 
of  our  accounts.  Before  .striking  our  balance  we,  therefore, 
reduced  the  stock  prices  of  your  holdings.  Notwithstanding 
thi.s,  the  nett  profit. of  ^340,090  is  only  a  little  below  that  of 
the  previous  year,  and  represents  rather  more  than  10  per  cent, 
on  the  issued  canital  of  the  corporation. 

We  maintained  the  igi6  rate  of  dividend.  On  the  ruling 
market  price  this  is  equivalent  to  a  return  of  over  qji  per  cent, 
less  tax.  To  meet  the  wishes  of  the  majoritv  of  .shareholders, 
we  resolved  to  distribute  half-yearly,  in  place  of  annual  divi- 
dends,  an  arrangement  of  which  irrvestors   approve. 

The  sum  of  ,fi5o,o(Xi  has  been  carried  to  the  reserve  fund, 
raising  it  to  ;^ 300,000. 


The  balance  o£  the  year's  profit  has  gone  to  swell  the  carr/ 
forward,  which  will  be  found  in  next  year's  accounts  at  a 
round  ^100,600. 

It  may  be  convenient  at  this  point  to  make  a  few  general 
ob.scrvations  upon  the  position  at  the  mines  under  our  super- 
vision, especially  those  in  which  we  have  im[x;rtant  holdings, 
but,  before  doing  so,  I  will  refer  to  our  enterprise  in  Trinidad, 
as  it  will  be  necessary  to  speak  upon  the  mines  at  greater  length. 
I  indicated  last  year  the  progressive  character  of  the  operations 
of  Trinidad  Leaseholds,  Ltd.  The  output,  which  at  that  time 
was  6,000  tons  monthly,  ha.s  now  increased  to  roughly  14,000- 
tons,  including  about  3,500  tons  fr<an  the  Barrackp^jre  field, 
acquired  by  the  absorption  of  the  Trinidad  Oil  and  Tran.sport 
Co.,  Ltd.  The  topping  plant  was  completed  towards  the  end 
of  June  last  year,  and  has  proved  very  .satisfactory.  The  com- 
pany is  now  producing  fuel  oil  of  a  high  grade,  as  well  as 
petrol.  We  took  up  the  100,000  shares  held  under  option.  Our 
confidence  in  the  future  of  this  property  is  steadily  becoming 
firmly  established. 

We  hold,  as  you  are  aware,  larger  investments  in  South- 
Africa  than  in  other  directions,  and  althcjugh  it  is  fitting  for 
me  to  say  a  word  or  two  upon  certain  mines  on  the  Witwaters- 
rand  field,  it  would  serve  no  useful  purpose  to  make  any  detailed" 
review,  which,  of  cour.se,  is  available  to  .shareholders  through' 
the  medium  of  the  annual  reports  and  the  speeches  delivered' 
by  the  chairmen  of  the  various  companies.  Two  outstanding 
unfavourable  facts,  which  I  need  not  reiterate  in  dealing  with 
individual  properties,  are  increased  cost  of  working  and 
shortage  of  native  labour  supply.  All  the  companies  have 
suffered  under  these  heads.  There  has  been  during  the  year, 
and  there  still  is,  a  certain  amount  of  labour  unrest,  which  I 
trust  may  shortly  disappear,  because  the  circumstances  do  not 
pormit  the  payment  of  increased  wages. 

The  situation  on  the  Rand  during  the  early  part  of  this 
year  has  been  accentuated  by  abnormal  floods,  which,  though 
important  in  their  effect  on  working  cost  and  delay,  which 
reduced  profits,  may  be  reasonably  regarded  as  merely  of  tem- 
porary sFgnificance.  Allowances  to  the  men  who  have  come^ 
over  to  fight  constitute  an  item  of  .somewhat  greatei  moment. 
\ot  a  dissentient  voice  has  been  raised — and  it  is  unthinkable 
that  it  should  have  been — against  this  heavj-  charge.  The 
companies  have  hehaved  generously  to  their  err.ployees,  who 
themselves  made  heavy  pecuniary  sa?rifices  to  offer  their  blood' 
in  the  cause  of  freedcmi  and  civilisation.  Many  of  the  gallant 
South  Africans  who  have  fallen  come  from  the  mines  of  the- 
Rand — all  honour  to  their  memory.  Increased  cost  arises  also 
from  the  higher  freight,  insurance  and  refining  charges  vpoa 
the  raw  gold.  But  the  most  important  addition  to  our  cost  i^ 
attributable  to  the  great  advar.ci-  in  wages  and  in  the  price 
of  commodities. 

On  the  whole,  I  thinlc  I  mav  say,  speaking  of  our  administra- 
tion, that  the  mines  of  the  Central  Rand  have  held  their  own 
in  the  matter  of  value  of  ore  developed,  and  that  those  of  the- 
Far  Eastern  Rand  have  still  furtlier  strengthened  their  position. 
The  value  of  the  ore  reserves  of  last  3'ear  compared  with  those 
of  its  predecessor  discloses  on  the  whole  a  healthy  posiGon. 
Taking  the  tonnage  milled  in  1917  (i.e..  after  sorting)  the 
value  was  estimated  at  30.1s.  per  ton,  against  an  estimated 
value  of  the  ore  reserves,  calcjlated  at  the  end  of  1917,  of 
33.2s.  per  ton.  The  difference  between  the  grade  crushed  in 
the  mills  and  that  of  the  ore  reserves  is  partly  explained  by  the 
treatment  of  ore  from  reclamation  and  development.  Excluding 
the  six  additional  mines  which  came  under  our  segis,  I  find 
that  the  value  of  the  ore  reserves  of  the  15  other  producing 
companies  with  which  we  are  associated  rose  by  r.is.  per  ton 
in  1917.  It  is  right  to  mention,  however,  that  the  increases  are 
due  rather  to  the  elimination  of  bk)cks  rendered  unpayable  by 
the  incrca,sed  cost  of  working  than  to  any  marked  general 
increase  in  value.  There  is„on  the  average  about  3%  years'' 
ore  supply  developed. 

The  most  disappointing  property  with  which  we  are  connected 
is  the  Ea.st  Rand  Proprietary  Mines,  Lfd.  I.ast  year's  results 
were  most  unfortunate.  The  reserves  of  ore  mainly  counted 
upon  to  supply  the  mill  for  a  number  of  years  during  the 
exploitation  of  the  southern  area  arc  proving  totally  inadequate 
for  the  purpose.  There  are  two  specific  reasons  :  In  the  first 
place,  the  increase  of  working  costs;  in  the  second  place,  the 
more  erratic  distribution  of  values  than  was  anticipated.  The^ 
mines  situated  in  this  particular  region  have,  especially  ir> 
recent  vears.  manifested  characteristics  which  are  not  entirely 
common  to  the  Central  Rand  or  to  the  Far  P'astern  Rand.  On> 
the  Central  Rand,  although  there  are  considerable  local  differ- 
ences in  the  value  of  the  ore,  the  gold  is  fairly  evenly  dis- 
tributed on  the  whole.  In  the  Far  Eastern  Rand  the  gaid  is 
much  more  concentrated  in  distinctive  channels,  the  generaF 
result  being  that,  though  there  are  considerable  areas  of  un- 
payable ground,  the  enriched  portion  cf  the  bed.s  is  weU 
defined.  The  general  effect  upon  the  company  of  which  I  am 
speaking,  in  combining  some  of  the  characteristics  of  both 
sections  of  the  Rand,  is  that  the  winning  of  the  payable  ore 
becomes  more  and  more  difficult  as  the  known  areas  of  payability- 
become  exhausted.  This  once  very  prosperous  company  has  in 
consequence  fallen  into  the  parlous  state  in  which  we  find  it 
to-day.  The  directors  have.  I  know,  .given  the  utmost  thought 
to  the  situation,  and  have  had  the  advantage  of  advice  from  , 
some  of  the  mcst  highly  qualified  engineers  and  geologists  of 
the  Kand.  I  greatlv  fear,  unless  some  unforeseen  change  occurs, 
which  it  is  impossible  to  predict  to-day,  we  must  prepare  our- 
selves for  a  comparatively  early  suspension  of  <->perations. 
Crown  Mines,    Ltd.  :  Although  the   profits  have  been   muchi 


Jlxf.  29,  1918. 


XLbc  Jnpcstors'  IReview. 


"39 


reduced  by  general  circumstances  affecting  all  the  mines,  I  am, 
nevertheless,  glad  to  say  that  the  outlook  of  this  property  is 
•distinctly  encouraging,  and  with  the  return  of  normal  times  I 
anticipate  better  results.  Vou  will  see  upon  reference  to  the 
consulting  engineer's  report  that  the  value  of  the  ore  reserves 
has  considerably  improved.  This  is  due,  however,  as  I  have 
pointed  out  in  my  general  remarks,  rather  to  the  exclusion  of. 
blocks  which  under  e.xisting  conditions  will  not  pay  to  work 
than  to  any  great  change  in  ore  recently  exposed.  At  the  same 
lime,  assays  of  reef  in  the  lower  levels  are  giving  us  very 
satisfactory  values.  Vou  will  remember  that  last  year  1  drew 
your  attention  to  what  I  termed  a  phenomenally  high  value 
which  had  been  obtained  in  a  borehole  in  the  centre  of  the 
property  jnunediately  south  of  the  great  dyke.  It  is  of  par- 
ticular interest  now  to  note  that  immediately  above  this  jwint 
on  the  north  side  of  the  dyke  the  presence  of  high-grade  ore 
has  been  recently  corroborated  on  the  i8th  level  by  assay  results 
•over  a  continuous  stretch  of  Oo  ft.,  averaging  i,aog  in.  dwts., 
and  by  (he  interse<tion  of  the  reef  in  a  cross-cut  off  the  igth 
Jevel  haulage  drive  assaying  2,967  in.  dwts^  These  results, 
following  as  they  do  the  high-grade  blocks  developed  im- 
mediately ab<«e  on  the  15th  and  i6th  levels,  are  a  hopeful  sign 
of  good  values  in  this  section  of  the  property.  We  cannot,  of 
course,  look  into  the  future,  and  in  a  mine  of  this  magnitude 
it  takes  a  great  deal  of  development  to  make  anj-  very  material 
change  in  the  value  of  the  total  ore  reserves,  so  that  T  do  not 
think  I  ought  to  let  my  optimism  go  any  further.  It  will 
interest  shareholders  to  know,  however,  that  to  the  eastward 
the  dyke  takes  a  much'  flatter  dip  than  was  expected.  This  gives 
the  northern  portion  of  the  mine  now  being  worked  a  longer 
life  than  was  anticipated,  and  removes  the  urgency  for  opening 
up  the  southern  area. 

Village  Deep  is  at  the  moment  giving  us  a  little  concern. 
The  low-grade  patch  of  ore  to  which  T  referred  last  year  has, 
unfortunately,  extended  in  length.  As  it  is  necessary  to  drive 
through  this  area  to  reach  the  better  sections  of  ground  on 
either  side,  it  has  had  a  depressing  effect  upon  the  value  of  the 
•ore  re.serves.  I  take  comfort  in  the  fact  that  latterly  the -values 
in  this  .section  have  improved,  and  I  am.  therefore,  hoping  to 
'be  able  to  tell  you  next  year  that  the  outlook  is  more  promising. 
'The  profits  for  some  months  were  affected  by  floods  in  the  lower 
levels,  and,  judging  by  the  returns  which  we  have  got  during 
the  past  few-  months,  7  am  afraid  the  earnings  of  the  present 
year  will   be  disappointing. 

City  Deep,  Ltd.  :  The  ore  reserves  fully  maintained  their 
value.  The  deeper  developments  in  the  central  section  of  the 
property  are  very  promising,  and  the  outlook  is  assured  for 
several  years  to  come.  In  the  western  part  of  the  mine  lower 
grade  ore  has  been  developed,  but  in  view  of  the  disclosures  in 
neighbouring  mines  better  values  are  to  be  anticipated  in  this 
section.  A  new  .shaft  to  meet  the  far  di.stant  needs  of  the  mine 
is  about  to  be  sunk. 

Nourse  Mines,  Ltd.  :  The  ore  reserves  have  remained  constant 
as  to  quantity  and  value.  The  development  of  the  main  reef 
leader  in  the  lower  le'/els  continues  good,  but  the  profits  are 
restricted   by  the  smaller  tonnage  milled. 

Rose  Deep,  I,td.  :  This  mine  has  done  very  well  during  the 
year.  The  profit  has  not  only  improved,  but  the  grade  of  the 
ore  reserves  has  been  slightly  increased,  and  the  costs  reduced. 
The  completion  of  the  plant  for  the  extensive  sand-filling  opera- 
tions now  in  progress  has  been  very  beneficial.  Recent  opera- 
tions show  a  reduction  in  the  monthly  crushings  owing  to  the 
effect  of  the  abnormal  rainfall. 

Modder  B.  Gold  Mines:  Thi'  profit  per  ton  milled  by  this  suc- 
cessful comp.-iny  shows  an  in<'rease  over  the  previous  year. 
The  ore  reserves  maintain  their  value  and  the  position  is  n 
strong  one.  From  causes  already  referred  to,  the  tonnage  dealt 
with  during  the  present  year  shows  a  decrease  compared  with 
^he  average  of  1917.  The  enlarged  plant  .should  be  avail.ible 
within  a  month  or  two. 

New  Modderfontcin  Gold  Mining  Co.,  T.td.  :  The  ore  reserves 
at  this  mine  are  most  extensive  and  particularly  good  in  value, 
and,  in  fact,  the  outlook  is  so  s;.tisfactory  that  I  think  I  need 
liardly  dwell  upon  it.  The  new  reduction  plant  is  l>eing  gradu- 
ally brought  into  operation,  and  last  month  a  record  output 
and  profit  were  secured.  Th,3  rem.-iinmg  portions  of  the  new 
winder  for  the  circular  shaft  have  now  arrived  in  .South  Africa, 
and   the   completed  new  plant  should   soon  be  ready. 

Modderfontein  East,  Ltd.  :  'J'he  consulting  engineer,  Mr. 
Stuart  Martin,  has  laid  out  the  mine  to  give  knowledge  of  th? 
nature  and  value  of  the  ore-bodies  throughout  the  western  side 
-of  the  property  at  a   comparatively   early   date^ 

We  have  further  added  to  our  interest  in  the  Far  Eastern 
Rand  by  faking,  jointly  with  the  Rnrd  Mines,  Ltd.,  a  share  in 
the  West  Springs  Mine,  the  lease  of  which  was  recently  granted 
by  the  Government  to  the  AnglowAmorican  Corporation.  Our 
holding-s  in  some  of  the  producing  deep  level  mmes  of  the 
locality  have  also  been  increased. 

The  dividends  paid  by  the  gold  mining  companirs  of  the  Wit- 
•watersrand  fell  from  ;^;,oq5,o56  in  1916  to  ;i'6, 556,188  in  1917, 
a  reduction  of,  roughly,  ^^540,000,  or  7_.f1  per  cent.  The  divi- 
dends paid  by  15  of  the  companies  under  our  administration 
fell  during  the  same  period  from  £^,(y3-;.2^y  to  £^.430,1^0,  or 
5.8  per  cent.  I  have  excluded  from  this  calculation  the  six 
additional  companies  which  came  und»r  .-jur  wing  during  that 
period.  The  com.panies  with  which  we  are  associated  suffered 
les.s  relatively  than  those  of  the  entire  field.  But  dividends, 
though  closely  indicative  of  results,  are  iiol  .an  absolutely  cor- 
rect standard  of  measurement,  because  other  factors,  such  as 
Teservo  funds,  drawn  npon  or  added  to,  and  non-recurrent  wind- 


f.dls  or  outlays,  though  unimportant  in  their  effect,  would  have 
to  be  analysed  to  obtain  precise  arithmetical  accuracy.  The 
dividend's  so  far  declared  during  the  current  year  are  lower  than 
those  of  1917,  and  the  outlook  is  not  free  from  anxiety.  In 
framing  our  bal.mce-sheet,  therefore,  we  have  taken  adverse 
factors  into  earnest  consideration,  and  have  maintained  in  our 
assessnieut   of    values   a   conservative   policy. 

The  position  of  the  corporation  in  relation  to  the  gold  mining 
industrj  of  the  Witwatersrand  is  shown  in  <mr  consulting  engi- 
neer's report.  Briefly,  the  companies  with  which  we  are  associ- 
ated milled  45.7  per  cent,  of  the  total  tonnage,  produced  47.8 
per  cent,  of  the  gold  won,  earned  46.4  per  cent,  of  the  working 
profit,  and  distributed  54.9  per  cent,  of  the  dividends  paid. 
I-Vpplause.)  Their  working  costs  averaged  20.25  shillings  per 
ion,  .igainst  19.18  shillings  for  all  the  mines.  That  might  be 
regarded  .superficially  as  a  point  againsj  us.  May  I  >ay,  in 
ju-itice  to  our  very  efficient  and  zealous  staff,  that  I  believe  our 
])ioperties  are  at  least  as  capably  and  economically  managed 
as  any  others.  To  arrive  at  the  relative  working  coets  of  re- 
spective administrations  would  involve  im  investigation  of  an 
extremely  technical  chaiacter,  touching  depth  of  workings, 
nature  of  rock,  proportion  of  sand-filling,  or  other  safety  mea- 
sures, and,  above  all,  the  system  of  book-keeping.  While  it  is 
unfortunately  true  that  a  number  of  the  older  mines  are  being 
exhausted,  there  is  considerable  hope  of  niaiiifaining  the  gold 
s'lpply.  if  not  quite  at  the  highest  jxiint,  at  least  at  a  very  high 
level,  for  many  years  to  come,  becau.se  of  the  favourable  de- 
velopments and  extension  of  'Dperations  in  the  Far  Fastem  Rand. 
But,  apart  from  actual  exhaustion  of  mines,  there  is  the  fact 
that,  owing  to  the  rise  in  working  costs,  one  of  the  main  causes 
of  which  I  will  deal  with  directly,  there  is  the  danger  of  the 
output  being  restricted.  A  large  number  of  mines  on  the  Rand 
will  shortly  have  to  be  closed  down  unless  some  relief  can  be 
given  to  them.  Fourteen  mines  are  barely  paying  expenses. 
They  employ  6,000  white  men  and  48,000  natives,  i'heir  work- 
ing costs  amount  to  ;f6,6oo,ooo  per  annum,  largelv  spent  in 
South  Africa.  They  furnish  the  world  with  about  ,.^7,000, 000 
of  gold. 

The  health  conditions  at  the  mines,  thanks  in  no  small  mea- 
sure to  the  gre.nt  services  rendered  'bv  Dr.  Lister,  have  been 
very  good,  and,  in  view  of  our  having  apparently  conquered 
ilie  most  serious  cause  of  mortality  .-unong  the  natives,  nainely, 
jineumonia.  it  is  to  be  regretted  that  a  proposal  to  try  another 
experiment  with  tropical  labour  was  not  agreed  to,  because 
the  disease  which  rendered  the  prohibition  of  their  employ- 
ment entirely  proper  years  ago  does  not  appear  any  longer  to 
be  a  source  of  danger.  If  it  could  be  shown  that  the  employ- 
ment of  such  labour  had  no  disadvantages  from  the  health 
standpoint,  there  would  appe.ir  to  be  in  that  direction  a  com- 
plete remedy  for  the  deficient  supply.  (Hear,  hear.)  Among 
the  great  countries  of  the  world.  South  Africa  is  piobably  to- 
day the  le.ist  advanced  in  development.  Industrial  expansion 
and  m.'iterial  prosperity  there  still,  to  no  small  extent,  upon 
the  gold  output,  and  that,  in  turn,  depends  upon  .in  adequate 
labour  force.  A  contraction  of  the  .gold  production,  injurious 
as  it  would  be  to  the  commerce  of  the  world,  Avould  particularly 
hit  South  .\frica.  Just  as  its  nutritive  effect  has  been  gradual 
and  cumulative,  so  the  consequences  of  decline  would  not  be 
instantaneous  but  slow  and   insiduous. 

A  comprehensive  discussion  upon  the  labour  question  in 
South  Africa  would  be  out  of  place  here,  and  I  am  fully  alive 
to  the  wide  field  for  divergency  of  view  from  the  broader  politi- 
cal aspect  of  the  matter.  But  I  am  impelled  to  repeat  a  warn- 
ing, often  uttered  before,  that  the  neglect  to  ir-ake  u.se  of  all 
the  native  labour  that  is  required  by,  and  can  be  secured  for, 
the  gold  mining  industry,  so  far  from  resulting  in  tlie  employ- 
ment of  more  white  men,  has  exactly  the  opposite  effect. 
Whether  white  men  will  in  time  overcome  their  abhorrence  of 
manual  labour  in  a  country  where  it  is  regarded  as  "  Kaffir 
work  "  I  cannot  say,  but  years  of  effort  to  make  them  do  so 
liave  not  had  any  appreciable  success.  The  terms  demanded 
by  the  white  man  for  his  services  out  there  put  his  emplojTnent 
as  a  mere  manual  labourer  out  of  '.he  question.  I'robably  as 
the  industries  of  the  country  grow  there  will  be  many  directions 
in  the  intermediate  classes  of  labour  .between  the  completely 
unskilled  and  the  fully  skilled,  where  the  while  men  may  find 
a  place,  but  I  am  certain  that  place  is  not  ordinarily  in  the 
mines.  In  ray  view,  the  provision  of  enough  native  labour  to 
work  as  many  mines  as  possible  is  the  best  method  of  develop- 
ing the  whole  country,  and  of  establishing  other  industries 
catering  for  their  needs  and  flourishing  upon  the  internal  wealth 
thus  created.  Such  industries  njight,  perhaps,  be  built  up— 
•  iibitrarily  and  advisedly — solely  upon  white  labour,  as  it  is  not 
advisable  on  sociological  grounds  that  the  white  man  and  the 
black  man  should  work  side  b}'  side  on  equal  terms.  (Hear, 
hear.) 

Those  who  have  seen  population  grow  out  of  single  indus- 
tries on  spaces  practically  uninh.ibited  before  hive  had  unique 
instruction  upon  one  aspect  of  production— it?  remarkable 
wealth-building  power.  The  diamond  fields  are  in  an  arid, 
almost  de.sert  region.  At  a  time  when  the  i^.nnual  output  of 
tough  diamonds  realised,  say,  ^^4,000,000,  after  de.lucting  the 
amount  spent  overseas  for  stores,  plant  and  di.stributed  profits, 
the  balance  divided  among  the  white  inhabitants  would  not 
have  provided  them  with  the  income  of  very  modest  wage- 
earners.  There  was  no  other  source  of  support  worth  men- 
tioning. Similarly  on  the  gold  fields  the  country  was  almost 
uninhabited.  Trade  was  so  insignificant  as  to  be  negligible. 
I  remember  once  making  a  calculation,  the  figures  of  which 
are  no  longer  at  my  disposal,  but  their  import  is  quite  clearly 


640 


u,be  Jnvestors'  IReview. 


June  29,  1918. 


stamped  on  my  memory.  Deducting  from  the  gold  output  of 
the  time  the  amount  ot  money  sent  overseas,  and  dividing  the 
whole  of  the  balance  among  the  white  population  would  not 
have  given  them  the  means  of  livelihood,  let  alone  enough  to 
live  at  the  comparatively  high  rate  then  prevailing,  and,  at 
the  time,  there  was  no  great  amount  of  money  being  supplied 
from  external  sources  for  development. 

The  fact  is  that  new  wealth  due  to  the  exploitation  of  re- 
sources has  a  yoviei  of  sustenance  altogether  greater  than  its 
nominal  value.  It  may  be  compared  to  coal,  the  theoretical 
energy  of  which  is  so  vastly  greater  than  that  we  derive  from 
it.  In  other  words,  the  actual  amount  of  real  value  in  what  we 
get  for  what  we  spend  is  infinitesimal,  and,  if  the  truth  were 
known,  the  actual  cost  of  our  keep  may  not  so  greatly  exceed 
that  of  the  bea.st  in  the  field  as  we  flatteringly  imagine.  Newly 
created  wealth  does  duty  over  and  over  again  by  the  process 
of  circulation  like  the  blood  in  our  bodies.  Hy  our  complex 
system  of  invented  wants  we  effect  endless  changes  in  elementary 
products,  but  consume  relatively  little.  Hence,  every  ounce  of 
gold  that  is  extracted  performs  functions  quite  disproportionate 
to  its  assessed  value.  What  applies  to  gold  applies  to  all  other 
minerals  and.  in  another  degree,  to  produce  of  the  vegetable 
kingdom  as  well.  If  we  could  only  learn  to  appreciate  this 
fundamental  truth,  we  should  pay  more  attention  to  what  we 
can  develop  out  of  our  own  soil  and  avoid  importing,  as  far  as 
possible,  similar  substances  from  other  soils,  even  though  they 
appear  to  be  nominally  cheaper. 

In  considering  the  chief  cause  of  higher  working  costs  on 
the  Witwatersrand  gold  fields  we  are  confronted  with  a  situation 
that  appears  anomalous  in  .some  respects.  The  war  has  had  a 
very  serious  effect  upon  the  gold  mining  industry  of  the  world. 
A  country  like  Western  Au.stralia  has  suffered  even  more 
grievously  than  we.  Why  have  wages  and  stores  risen? 
Largely  because  they  are  paid  for  in  a  paper  currency  that, 
owing  to  inflation,  has  depreciated.  If  there  had  been  enough 
gold  to  pay  for  the  balance  of  external  trade  in  the  precious 
metal  exchanges  would  have  remained  normal,  and  the  creation 
of  paper  money,  to  transfer  the  predominant  part  of  internal 
trade  from  the  ordinary  channels  into  the  hands  of  the  Govern- 
ment, would  not  have  caused  the  great  depreciation  that  we 
have  witnessed  in  its  value.  We"  are  in  a  vicious  circle.  A 
rise  in  commodities  involves  a  rise  in  wages  and  vice  versa, 
and  thus  the  snowball  of  national  debt  goes  on  growing  from 
the  double  cause  of  expenditure  and  rising  prices.  Every 
thoughtful  economist  looks  at  the  future  with  grave  misgiving. 
Debts  incurred  upon  commodities  at  a  high  cost  must  some 
day  be  paid  for  in  commodities.  The  higher  their  price,  {he 
less  in  quantity  needed  to  square  the  account.  On  these 
premises  the  greater  the  inflation  and  the  higher  the  value 
of  commodities  the  easier  the  extinction  of  debt.  Unhappily, 
the  reverse  of  this  reasoning  may  have  tn  be  faced.  A  time  mav 
come  when  the  supply  of  commodities  will  exceed  the  demand, 
and  depress  prices.  We  live  in  a  competitive  world,  and  shall 
hence  have  to  meet  our  obligations  in  commodities  at  the 
cheapest  rate  at  which  thej'  can  be  sugplied  from  any  part  of 
the  globe.  For  the  extinction  of  external  debt  there  is  only  one 
substitute  for  commodities — gold.  And,  again,  sufficient  com- 
modities for  the  repayment  of  huge  debts  can  only  be  produced, 
or  for  that  matter  absorbed,  in  the  course  of  many  years,  and 
the  deferment  in  the  payment  of  debt  during  that  period  can 
only  be  secured,   at  fair  rates,  by  credit  based  upon  gold. 

We  have  all  read  a  good  deal  of  .specious  argument  on  the 
subject  of  the  gold  standard  and  its  abolition,  but  the  fact 
remains  that,  although  reputation  for  national  probity  is  of 
great  worth  and  permits  delay  in  settling  debts,  no  amount  of 
confidence  in  the  integrity  of  a  debtor  and  no  amount  of 
sophistry  about  "liquid  wealth"  in  the  shape  of  raw  materials 
and  an  industrious  population  will  pay  debts.  Hard  cash, 
goods,  or  services  of  a  valuable  character  are  the  only  con- 
siderations acceptable  to  the  creditor.  These  are  the  reasons 
why  the  gold  output  has  been,  and  still  is,  of  such  vital 
consequence. 

The  British  Empire  produced  last  year  ^^56, 139,030  out  of 
the  total  world  output  of  ;f87,983,i30,  or  63.8  per  cent.  The 
standard  price  for  fine  gold  here  is  roughly  85s.  per  oz.  Its 
varying  value  is  not  expressed  in  a  rise  or  fall  in  the  value  of 
the  metal,  which  fluctuates  infinitesimally,  but  in  the  rise  and 
fall  in  the  price  of  commodities  and  in  exchange  rates  between 
different  centres.  Rates  of  exchange  have  little  to  do  with  the 
wealth  of  a  country.  They  mainly  represent  the  state  and 
tendency  of  trade  balances.  The  movement  of  a  relatively  small 
amount  of  gold  has  a  surprisingly  large  effect  upon  rates  of 
exchange. 

It  is  not  m}-  intention  to  grapple  with  the  abstruse  subtleties 
of  the  currency  question.  The  consideration  of  that  problem 
was  entrusted  to  a  Committee  at  the  beginning  of  the  present 
year,  under  the  chairmanship  of  Lord  Cunliffe — until  recently 
Governor  of  the  Bank  of  England — with  a  number  of  distin- 
guished gentlemen,  two  of  whom  are  connected  with  the 
Treasury,  eight  of  whom  (including  the  chairman)  are  bankers, 
three  members  of  great  financial  houses  and  one  a  professor  of 
political  economy.  It  is  a  body  whose  conclusions  will  un- 
doubtedly be  treated  with  respect.  The  currency  question,  how- 
ever, certainly  deeply  concerns  the  gold-producing  countries  of 
the  Empire,  and  it  is  rather  surprising,  therefore,  that  no 
representation  of  their  interests  was  given  upon  fje  Committee. 
The  interests  of  the  gold  producer  and  those  of  the  banker  or 
merchant  are  not  always  identical.  In  a  recent  letter  from  Mr. 
Samuel  Evans,  the  managing  director  of  the  Crown  Mines,  who 


has  given  a  great  deal  of  very  able  thought  to  the  question,  thi» 
aspect  is  presented  in  the  following  terms  : — 

"  The   business    of    bankers,"    he   says,    "  is   to   deal   in 
money,  money  in  all  forms,  and,  consistent  with  the  main- 
tenance of  confidence,  the  more  money — not  only  gold,  but 
also   paper — there  is  to  deal  in,  the  more   profit  they  can 
make   for    their  shareholders.     The  annual   reports  of  the 
leading  English   banks  show  that,  on  the  whole,  1917  wa* 
one  of  the  most  prosperous  years  they  have  ever  had,  due 
largely,   I  take  it,  to  the    fact  that,   owing  partly  to   the 
inflation  of  the  currency  by  means  of   the  printing   press-, 
they  had  more  money  to  handle  than  in  normal  years." 
I   think  my  correspondent  may  not  have  given  full  weight  to 
ruling    rates  of  interest  in   his   review  of  banking  prosperity. 
It   is  certainly  in  the  interest  of  the  banks,  in  one  sense,  that 
there  should   be   an    ample  supply  of   paper    currency  and    t.i 
stocks  and  securities  which  bear  interest,  with  limited  obliga- 
tions in   regard  to  gold  cover.     But,  apart  from  the  fact  that 
most  bankers  will  take  a  broader  view,  there  is  a  limit  to  the 
rcpresentation    of    wealth    in    such    a    form,    because    inflated 
currency    means   high   prices,   and  high   prices  mean   in   turn 
less  safety  for  advances  upon  securities  and  jnaterials.     Copper, 
for  instance,  at  a  market  value  of  £^o  per  ton,  is  better  .security 
than   copper  at  .ifioo   per  ton.     The  financial  stability  of  the 
world  is  undoubtedly  best  protected  by  the  backing  of  as  much 
gold  as  possible  against  pxaper  securities  and  emergencies.     It 
is  not  necessary,  however,  for  me  to  pursue  this  branch  of  the 
subject  for  the  purpose  of  showing — as  I  think   I   shall  be  able 
to — that   gold,    during   the  war   period   at    least,    has    been   of 
greater  value  than  the  consideration  paid  for  it.     (Hear,  hear.y 
I  want  to  get  a  clear  field  to  start  with.     Do  not  let  us  mix 
up  the  purely  dome.stic  question  of  cost  of  working,  or  whether 
certain  low-grade  mines  should  be  subsidised   or  closed  down. 
Those  are  matters  for  the  exclusive  consideration  of  the  people 
of  gold-producing  countries.     If  gold  was  of  such  a  value  that  it 
paid  to  buy  it  for  more  than  the  normal  price,  I  could  under- 
stand a  special  bonus  per  ounce  being  given  to  the  Government 
concerned    for   distribution  among  those  working  material  not 
.sufficiently  productive   to  cover  the  entire  working  cost.     Or  a 
Government  faced  with  this  problem  might  deem  it  in  the  in- 
tere.st  of  the  State  to  subsidise  needy  mines  for  the  purpose  of 
giving    employment   to  the    people.      Such    considerations    an' 
purely  of  local  concern. 

The  value  of  our  gold  in  the  world's  markets  is  another  matter, 
and  takes  no  cognisance  of  the  yield  or  cost  of  working  the 
mines.  The  subject  is  complex  and  delicate.  I  desire  to  deal 
with  it  fairly  and  in  no  partial  spirit.  When  war  broke  out  ar» 
agreement  was  made  with  the  Bank  of  England  to  purchase  the 
output  in  South  Africa  at  the  standard  rate,  subject  to  certain 
charges.  At  the  time,  the  terms  appeared,  as  I  am  sure  they 
were  intended  to  be,  entirely  fair  to  the  producers.  In  the  early 
days  of  the  war  the  immense  purchases  of  material  from  abroad 
and  the  diminishing  export  trade  manifested  themselves  in 
adverse  exchange  rates,  and,  as  the  effect  was  brought  to  my 
notice  by  a  representative  of  some  of  the  gold-producing  com- 
panies, I  directed  the  attention  of  the  Government  to  the  matter. 
This  was  at  the  end  of  August,  1915;  I  did  not  pursue  the 
subject  then  for  a  variety  of  reasons,  which  it  could  serve  no 
useful  purpose  to  enter  into  now.  Very  shortly  after  that  the  Bank 
of  England,  at  the  instance  of  the  British  Government,  made 
certain  modifications  in  the  first  agreement  which  involved 
higher  charges  to  the  mines,  but  stated  "  it  was  not  desired  to 
make  profit  or  loss  on  realisation."  Without  laying  too  much 
stress  on  the  matter,  I  feel  bound  to  note  that  the  producers  were 
not  given  much  opportunity  of  expressing  their  views  upon  the 
subject.  A  definite  offer  was  made  which  left  no  opening  for 
negotiation.  I  confess,  however,  that  no  one  could  then  foresee 
either  the  duration  of  the  war  or  its  effects  upon  the  finances 
of  the  world.  Everyone  knows,  moreover,  and  gratefully  ac- 
knowledges, that  but"  for  the  British  Navy  the  gold  mining 
industry  would  have  come  to  a  standstill.  Since  the  agreement 
was  made  we  have  steadily  watched  the  increasing  losses  to 
which  the  gold  mining  industry  has  been  subjected  from  a 
variety  of  causes,  but  we  contend  mainly  on  account  of  the 
adverse  exchanges.  In  recent  times  I  have  again  taken  this 
matter  up,  and  I  believe  it  is  now  receiving  serious  considera- 
tion, as  a  result  of  which  I  trust  that  an  expert  inquiry  may  be 
instituted  so  that  the  equities  of  the  ra.'ie  may  receive  the  con- 
sideration to  which  they  are  entitled.     (Hear,  hear.) 

With  the  solitary  exception  of  gold  all  commodities  have 
risen,  at  least  in  the  ratio  of  their  increased  cost  of  produc- 
tion. Fine  gold  (if  we  e.xclude  the  small  amount  now  permitted 
to  be  used  for  trade  purposes,  which  has  risen  to  something  like 
115s.  per  oz.),  has  remained  stationary  at  the  standard  price  of 
85s.  per  fine  oz.  That  the  raw  gold  from  South  Africa  is  worth 
more  than  the  price  paid  for  it  in  paper  currency  is  not  a 
difficult  matter  to  demonstrate  in  general  terms.  It  is  extremely 
difficult  to  assemble  the  data  required  to  prove  the  amount  of 
the  increased  value.  That  is  the  problem  that  awaits  solution. 
If  we  assessed  its  value  according  to  the  rates  of  exchange  it 
must  be  admitted  that  the  Exchequer  made  a  very  profitable 
bargain.  But  the  rates  of  exchange  are  not  the  true  measure 
of  its  value,  becau.se  it  was  used  partly  to  regulate  those  rates, 
and  without  our  gold  the  adverse  exchanges  would  have  been 
still  higher.  W^e  must,  however,  not  lose  sight  of  the  fact  that 
our  gold  can  only  be  disposed  of  in  markets  able  to  consume  it 
on  the  one  hand  and  give  commodities  or  credits  for  it  on  the 
other.  We  could  not,  therefore,  if  we  had  had  a  free  market 
during  the  war,  have  hoped  always  to  ship  our  gold  to  the 
particular  country  among  our  Allies  or  neutrals  that  at  any 
moment  needed  it  most. 


Ji;ne  29,  1918. 


Xtbe  Jnvcstors'  (Review. 


641 


Surely  here  is  a  case  for  investigation,  and,  if  my  conten- 
tion be  upheld,  adjustment.  (Hear,  hear.)  Just  as  we  may 
acknowledge  without  reservation  that  the  bargain  was  made  in 
the  utmost  good  faith,  so  we  may  reasonably  expect,  being  of 
opinion  the  British  Government  has  made  a  large  direct  or 
indirect  profit  out  of  the  transaction,  that  they  will  cause  an 
inquiry.  Of  one  thing  we  may  rest  assured.  The  nation  would 
not  desire  to  profit  at  the  expense  of  producers  of  any  com- 
modity in  any  part  of  the  Empire.  To  support  my  view  in 
broad  terms  only  a  simple  illustration  is  required  ;  if  we  could 
have  paid  for  our  commodities  in  our  own  gold,  instead  of 
depreciated  paper,  we  should  have  obtained  due  compensation 
in  value  for  part  of  the  increase  in  our  working  costs.  Theo- 
retically, we  could  have  distributed  the  commodities  bought 
with  our  gold  at  its  par  value  among  our  workmen  (who  would 
not  then  have  needed  higher  wages  to  the  same  extenT)  and 
among  our  shareholders,  who  would  have  had  higher  dividends. 
Impoverishment  or  enrichment  of  the  ore  treated,  taxation, 
supply  and  demand,  allowances  to  men  serving,- &c.,  would,  of 
■course,  have  influenced  the  profits,  but  those  factors  do  not 
affect  the  question   under   review. 

Gold  held  in  reserve  earns  no  interest,  and  therefore  is  a 
■charge,  but  it  is  like  all  other  stock-in-trade,  of  which  hundreds 
of  millions  must  always  be  inert  in  every  country,  and  it  is  the 
easiest  form  in  which  real  wealth  may  be  stored  as  security 
for  negotiable  paper.  It  is,  in  fact,  an  easy  form  of  compress- 
ing into  very  limited  compass  the  actual  representation  of  a 
given  amount  of  accumulated  m.iterial  and  fruits  of  industry. 
My  distinguished  friend  Mr.  Hennen  Jennings,  in  his  admir- 
able paper,  "  The  Gold  Industry  and  the  Gold  Standard,"  con- 
siders gold  coins  as  "  storage  cells  of  human  energy."  Stock- 
taking in  such  a  commodity  offers  no  difficulty. 

When  peace  is  restored,  and  trade  once  more  flows  into  its 
natural  channels,  it  may  be  assumed  that  gradually  rates  of 
exchange  will  approximate  to  pre-war  normal  conditions,  but 
there  will  be  an  intervening  period,  and  perhaps  a  long  one, 
before  that  happy  stage  can  be  reached.  Meanwhile,  the  re- 
storation of  our  position  in  this  country  would  appear  to  require 
as  much  gold  as  we  can  possibly  attract  to  our  Mint.  As  far 
IS  gold  producers  are  concerned  they  would,  of  course,  have  to 
take  their  chance  if  t^ere  is  to  be  a  free  market  for  gold,  and 
Ihey  might  find  themselves  not  unhappily  placed  under  such 
conditions,  but,  if  the  control  now  reigning  is  to  continue, 
•especially  in  peace  times,  then  the  situation  calls  for  authorita- 
tive review  and  a  settlement  the  fairness  of  which  is  unim- 
peachable. If  the  Government  holds  the  view  expressed  in  the 
Times  money  article  of  the   loth  in.st. — 

"It  would,  of  course,  not  be  possible  to  allow  the  mines 
to  realise  their  gold  in  whatever  market  they  pleased. 
That  would  mean  that  this  country  would  lose  control  of  the 
output,  which  it  could  not  afford  to  do," 
it  is  imperative  to  discover  not  only  how  far  it  would  be  equit- 
able to  make  good  any  losses  suffered  by  the  producers  of  gold 
"during  the  war,  but  to  think  out  a  basis  which  would  satisfy 
oversea  producers  and  their  Governments  in  the  disposal  of 
their  output,  either  for  a  given  number  of  years  or  indefinitely 
in  the  London  market.  While  it  may  be  admitted,  on  the  one 
hand,  that  no  country  can  afford,  except  in  a  case  of  momentary 
-emergency,  to  pay  more  than  £1  in  value  for  £1  in  gold,  the 
consideration  given  must  be  worth  £1,  and  that  has  not  been 
the  case  during  the  war,  which  is  the  chief  reason  for  the 
cost  of  getting  gold  being  higher  than  it  was  in  pre-war  days. 
'Given  full  value  is  paid  for  the  product,  then  I  cannot  imagine 
any  system  which  would  justify  the  subsidising  of  gold  mines 
whose  yield  does  not  exceed  the  cost  of  extraction.  The  stress 
in  some  countries  might  be  so  great  after  the  war  that  they 
would  actually  be  ready,  in  order  to  secure  a  certain  amount  of 
gold  to  enable  them  to  revive  external  trade,  to  forfeit  a  certain 
amount  of  material  and  labour  for  this  purpose,  which  is  the 
real  effect  of  a  bounty.  Such  a  course  of  action  could  not  be 
regarded  as  sound,  and  would  only  be  resorted  to  for  the  attain- 
ing of  some  specific  and  probably  temporary  object.  A  meeting 
will  be  held  next  week  of  the  chief  representatives  of  gold 
production  in  the  Empire  with  a  view  to  formulating  and 
submitting  their  case  to  the  Government.  I  can  only  give  you 
to-day,   as  I   have  done,  my  ifidividual  opinions. 

Death  has  deprived  us  of  two  old  friends  since  I  last  met 
you.  Mr.  Georges  Rouliot,  one  of  our  able  directors  in  France, 
with  whom  I  was  personally  associated  for  many  years,  died 
suddenly,  and  Mr.  William  Holmes,  who  was  legal  adviser 
to  my  old  fir.m  and  subsequently  to  the  corporation,  whose 
intellect  remained  clear  and  acute  to  the  end,  has  been  taken 
from  us.  Mr.  Andrew  Moir,  so  long  and  loyally  associated 
-with  us.  has  retired  to  enjoy  more  restfuUy  his  remaining  days, 
which  I  trust  may  be  prolonged,  but  I  am  sure  they  will  be 
■devoted  nevertheless  to  the  good  objects  he  has  always  pursued. 
Monsieur  Maurice  de  Verneuil,  for  many  years  Syndic  des 
Agents  de  Change  in  Paris,  has  joined  our  board.  Colonel 
Pollen,  long  connected  with  us  in  various  directions,  is  also 
adding  his  sound  counsel  to  our  deliberations.  Lastly,  we  have 
elected  as  a  colleague  Mr.  E.  A.  Wallers,  so  long  and  favourably 
linked  with  our  organisation,  who  has  carved  out  for  hini.self  .1 
•distinguished  position  in  South  African  business  life.  (Hear, 
hear.)  I  shall  have  pleasure  presently  in  moving  a  resolution 
to  give  effect  to  these  changes,  which,  I  think,  add  much 
strength  to  our  board 

Sir  Harry  Ross  Skinner  has  taken  up  his  abode  in  South 
Africa  as  one  of  our  resident  directors,  and  the  benefit  of  his 
wise  mind  and  genial  manners  is  already  manifest  in  various 
•^lirections. 

Lastly,  may    I    thank  our   hard-working  staff   at  home  and 


abroad   for    their   able   and  consistently  cx)nscientious   support. 

I  beg  to  move  :  "  That  the  report  of  the  directors  and  the 
statement  of  accounts  to  December  31,  1917,  now  laid  before 
the  meeting,  be  and  the  same  are  hereby  received  and  adopted." 

Sir  K.   Sothern   Holland,   Hart.,  seconded  the  resolution. 

The  Chairman  invited  discussion,  but  no  shareholder  rising 
to  speak,  the  resolution  was  then  put  to  the  meeting  and  carried 
unanimously. 

The  Chairman  next  moved  the  re-election  of  the  retiring 
directors  : — M.  Maurice  de  Verneuil,  Lieut.-Col.  S.  11.  Pollen, 
C.M.G.,  Mr.  E.  A.  Wallers,  C.B.E.,  Sir  R.  Sothern  Holland, 
and  Major  R.  W.  Ffennell. 

Mr.  W.  Mosenthal  having  seconded  the  proposition,  it  was 
unanimously   agreed    to. 

On  the  motion  of  Mr.  J.  P.  Glass,  seconded  by  Mr.  F.  J. 
Dormer,  the  auditors  (Messrs.  Cooper  Urothers  and*  Co.)  were 
reapj^Kjinted. 

Mr.  Gerald  Williams  said  he  was  certain  his  fellow-share- 
holders would  wish  to  join  with  him  in  a  very  hearty  vote  of 
thanks  to  the  chairman  for  the  able  way  in  which  he  had 
exposed  the  situation  of  the  various  companies,  and  for  the 
very  able  address  he  had  given  them  on  the  general  situation 
of  gold.  He  took  a  very  great  interest  in  this  question,  and 
he  rose  to  voice  the  feeling  which,  he  was  sure,  was  shared  by 
all  present,  of  gratitude  to  Sir  Lionel  for  his  painstaking  and 
eloquent  address,  also  to  the  directors  generally  for  the  able 
way  in  which  they  had  looked  after  the  shareholders'  interests. 
(Hear,  hear.) 

Mr.  F.  A.  Robinson  seconded  the  motion,  which  was  carried 
with  acclamation. 

The  Chairman  :  Mr.  Williams,  Mr.  Robinson  and  Gentle- 
men,— Allow  me  to  thank  you  very  much  on  my  own  behalf  and 
that  of  my  colleagues  for  the  kind  vote  which  you  have  passed. 
We  have  certainly  had  an  anxious  year,  and  we  see,  of  course, 
anxious  times  in  front  of  us;  but  we  are  not  alone  in  that 
condition,  and  all  I  can  say  is  that  we  shall  try  to  act  with 
the  same  prudence  that  has  actuated  us  in  the  past ;  .so  that 
there  may  come  a  time  when  I  shall  hope  to  have  the  pleasure 
of  congratulating  the  shareholders  upon  very  much  larger 
profits  than  we  are  able  to  show  to-day.  As  to  the  subject  of 
gold,  which,  of  course,  is  an  extremely  complex  one,  I  have, 
after  a  great  deal  of  thought,  prepared  the  remarks  which  have 
been  delivered  to-day,  and  I  hope  they  may  be  productive  of 
some  good  not  only  to  the  particular  gold  mines  with  which  we 
are  associated,  but  to  the  gold  mines  throughout  the  British 
Empire,  and  in  the  end  to  the  service  of  this  country — (hear, 
heai) — because,  as  the  Times  suggested,  you  cannot  expect 
to  control  the  output,  especially  in  times  of  peace,  unless  it  be 
done  with  the  sanction  of  the  people  who  produce  the  gold  and 
with  the  sanction  of  the  Government  of  the  people  who  do  so. 
(Hear,  hear.)     I  thank  you  very  much. 

The  proceedings  then  terminated. 


BRITISH    CYANIDES. 

The  annual  ordinary  general  meeting  of  the  British  Cyanides 
Co.,  Ltd.,  was  held  on  Wednesday,  at  the  Cannon  Street  Hotel, 
E.G.,  Mr.  C.  F.  Rowsell  (chairman  of  the  company)  presiding. 

The  Secretary  (.Mr.  F.  Street)  having  read  the  notice  conven- 
ing the  meeting,  the  report  of  the  auditors  (Messrs.  Howard, 
Button,  Hamp  and  Co.)  was  read  by  a  representative  of  the  firm. 

The  Chairman  said  :  Before  dealing  with  the  accounts  1 
should  like  to  express,  on  behalf  of  myself  and  my  colleagues, 
our  deep  regret  at  the  loss  of  our  two  colleagues,  Mr.  A.  M. 
Chance  and  Mr.  Gordon  Salamon.  Mr.  A.  M.  Chance  was  our 
first  chairman,  and  took  the  deepest  interest  in  your  company's 
prosperity  up  to  the  very  end.  Mr.  Gordon  Salamon,  you  will 
remember,  was  our  technical  director ;  he  was  a  man  of  con- 
siderable scientific  attainments  and  business  ability,  and  in  the 
early  and  difficult  years  of  this  company's  career  his  advice 
was  invaluable.  Before  dealing  with  the  position  of  the  com- 
pany generally,  I  w  ill  first  refer  in  some  detail  to  the  accounts, 
and  I  will  first  turn  to  the  profit  and  loss  account.  You  will  see 
our  gross  profit  on  trading  for  the  year  was  ;^67,478  3s.  4d.,  as 
against  ^^41,881  is.  last  year;  our  manufacturing  and  general 
expenses  amount  to  ^28,47^  2s.  id.,  as  against  ^f 21, 582  is.  iid. ; 
depreciation,  £2,()S<)  19s.  id.,  against  ;^3,224  2s.  id. ;  and  the 
result  is  that  we  are  able  to  carry  forward  to  the  balance-sheet 
a  profit  of  ;^36,725  2s.  6d.,  as  against  ;^i6,04o  los.  last  year, 
which  .shows  the  very  rapid  increase  in  the  earning  power  of  the 
company  which  has  arisen  during  the  year  under  review.  Our 
dividend,  at  the  rate  of  14  per  cent.,  shows  an  increase  of  3 
per  cent.,  but  it  is  hardly  necessary  to  remind  you  of  the  bear- 
ing of  excess  profits  on  this  point.  Coming  now  to  the  balance- 
sheet,  our  issued  capital  now  amounts  to  ;^i67,3i6  12s.,  and, 
in  pursuance  of  the  resolutions  passed  b}'  the  company,  all  these 
shares  are  now  ordinary  shares,  as  against  the  issued  capital 
last  year  of  ;ifi3-i.575.  consisting  of  55,000  ordinary  and  70,575 
preference  shares.  The  reasons  for  this  amalgamation  of  the 
ordinary  and  preference  shares  I  dealt  with  fully  at  our  special 
meeting  on  the  subject.  On  the  liability  side  of  our  account 
we  also  have  an  overdraft  at  the  bank  of  ;^39,370,  as  compared 
with  an  overdraft  last  year  of  £22,t2q  Ss.  od.  ;  our  sundry  credi- 
tors are  /^ 39. 275  is.  7d..  as  against  ^^14,749  16s.  2d.  last  year; 
our  reserve  account  remains  at  /^lo.ooo.  Coming  now  to  the 
assets  side  of  the  act^ount,  our  leasehold  works  and  buildings, 
^c,  stand  at  ;f85,83o  19s.  2d.,  as  against  ;f73.743  6s.  od.  last 
year.  I  think  you  may  rest  fully  assured  that  this  figure  of 
/.'85,83o  is  fully  represented  bv  assets,  especially  in  view  of  the 
very  great  increase  which  has  taken  place  in  the  Value  of  plant 


642 


Xlbe  Jnvestovs   IReview. 


Jlvi;  .'9,   1918. 


and  materials  at  the  present  time.  The  next  item  is  our  new  free- 
hold works,  buildings,  plant,  "and  machinery,  which  amounts  to 
^^28,428  15s.  jd.,  as  against  £y.4.]6  3s.  last  year.  This  asset, 
again,  is  thorouglily  sound,  and  here  particularly  one  has  to 
tecogiiise  that,  if  this  plant  had  had  to  be  erected  during  the 
war,  itii  cost  would  have  been  enormously  increased.  We  ha\e 
set  out  in  detail  our  investments  in  allied  companies — namely, 
10,000  shares  in  the  Oldbury  S.f".  Syndicate,  which,  as  you 
know,  is  the  syndicate  which  was  formed  for  the  exploitation  of 
the  baritmi  procfiq ;  26,4r)()  shares  in  the  British  Potash  Co., 
about  which  I  sh;ill  have  more  to  say  later  on;  3,000  shares  in 
the  National  Research  Syndicate  and  Fred  Danks,  Ltd.  Our 
investment  in  Fred  Danks,  Ltd.,  ycm  will  see,  cost  us 
^■31,7^2  for  the  purchase  of  3o,fx>o  sliares,  and  we  have  made 
them  a  loan  of  _^5,ooo,  and  in  addition  we  have  guaranteed 
an  overdraft  of  2^3o,o(»  on  their  behalf.  The  next  items  may 
be  described  as  working  capital  items — namely,  investments  iii 
War  Loan  and  War  Savings  Certificates,  amounting  to  2^30. S77 
IS.  9d. ;  stocks  of  materials,  boats,  tank  wagons,  &c.,  ;{.'3().i(i.t 
14s.  lod.  ;  and  1  may  say  that  this  item,  again  is  taken  011  a 
thoroughly  conservative  basisj  book  debts,  £i~,'~^  us.  3d., 
making  a  total  of  ^03.818  7s.  lod.  This  should  be  compared 
with  the  liabilities  to  which  I  have  referred  already — namely, 
overdraft  at  bankers,  /30.370  6s.  rd. ;  sundry  creditors,  ;^3g.275 
IS.  7d.  ;  and  the  guaranteed  overdraft  on  account 
of  Fred  Danks,  Ltd.,  ;f 30,000 ;  making  a  total  of 
;^io8,645  7^-  Sd.  I  think  the  figures  of  the  balance- 
sheet  indicate  very  clearly  the  greatly  increased  prosperity  of 
your  company,  and  1  am  glad  to  say  that  this  prosperity  is 
based  iipon  a  very  largely  increased  output  from  our  works,  and, 
while  it  discloses  a  thoroughly  sound  position,  it  does,  at  the 
same  time,  indicate  very  clearly  that  the  increasing  demands 
of  our  business  require  further  additions  to  our  ca.sh  re.sources, 
and  it  is  for  this  reason  that  we  are  recommending  you  to-day 
to  increase  the  capital  by  creating  100,000  5  per  cent,  cumula- 
live  preference  shares  and  50,000  ordinary  shares,  with  an 
immediate  issue  of  50,000  preference  and  25.000  ordinary  shares  ; 
it  perhaps  would  be  convenient  if  I  were  to  deal  with 'this  new 
issue  at  this  stage  before  turning  to  my  general  statement  as 
to  the  position  of  the  company.  Vour  board  gave  very  cU)se 
consideration  to  the  question  of  the  future  finance  of  this 
company,  and  in  doing  so  they  recognised,  as  I  think  j'ou.  too, 
will  do  when  you  have  listened  to  the  further  information  which 
I  have  to  place  before  you,  and  to  our  managing  director's 
remarks,  that  it  was  inevitable  that  this  company,  if  it  is  to 
continue  its  successful  career,  must  very  greatly  enlarge  its 
sphere  of  activity,  and  for  this  purpose  will  require  from  time 
to  time  further  resources  of  capital.  We,  therefore,  gave  the 
question  our  special  consideration  before  placing  our  scheme 
before  you,  as  we  wish  to  make  it  one  which  will  develop  our 
financial  resources  as  our  financial  requirements  demand  such 
development.  In  our  opinion  this  will  be  best  carried  through 
by  the  creation  of  the  preference  issue,  in  addition  to  our 
ordinary  shares,  because  we  fee!  that  a  preference  issue  such 
as  we  have  suggested— namely,  5  per  cent,  cumulative,  free  of 
tax— would  appeal  to  a  different  class  of  shareholders  to  that 
to  which  our  ordinary  shares  appeal.  There  is  a  very  large 
class  of  investor  in  this  country  which  prefers  a  share  which  gives 
them  a  definite  clean  income  with  no  spice  of  speculation,  and 
in  the  preference  shares  which  we  are  creating  I  think  they  will 
have  the  ideal  share,  because  we  shall  earn  many  times  over 
the  amount  required  to  maintain  the  dividend  on  the  preference 
shares.  At  the  same  time  there  is  another  class,  probably  larger, 
which  prefers'  a  .speculative  element,  and  while  we  confidently 
believe  fiat  the  progress  which  this  company  has  shown  during 
the  past  years  will  continue,  it  is  not  possible  for  a  company 
of  this  character  to  avoid,  after  periods  of  exceptional  pro- 
sperity, quieter  and  less  profitable  times  ;  therefore,  the  ordinary 
share  of  a  company  of  this  character  is  bound  to  have  a  certain 
speculative,  quality,  which,  as  I  have  said,  is  attractive  to  a 
very  large  class  of  investor.  \,  therefore,  feel  considerable 
confidence  in  recommending  the  shareholders  to  adopt  the 
priiiciple  which  we  have  suggested  for  further  increases  of 
capital  in  this  company.  Of  course,  the  creation  of  these  shares 
will  require  the  sanction  of  the  company  in  special  meetings. 
We  have  not  at  present  called  those  meetings,  as  we  have  not 
vet  received  Treasury  sanction  for  the  issue,  but  we  have 
applied  for  it,  and  have  very  little  doubt  that  it  will  be  granted. 
Now,  gentlemen,  since  I  last  had  the  pleasure  of  addressing 
vou,  there  has  been  a  considerable  change  in  the  situation  of 
this  company.  Up  to  the  time  when  I  last  met  you  at  cur 
annual  general  meeting  this  company  was,  to  all  intents  and 
purposes,  a  private  company— that  is'  to  say,  it  was  owned  bv 
a  few  shareholders  who  had  backjed  it  from  the  start,  and  who 
had  continued  to  increase  tfieir  interest  in  the  conipan\-  from 
time  to  time  as  further  capital  was  required.  During  the  year, 
in  view  of  the  very  substantial  progress  we  have  made,  and  of 
what  we  consider  the  inevitable  requirements  of  further  caoital, 
we  decided,  with  the  consent  of  our  chief  shareholders,  to  intro- 
duce our  shares  upon  the  London  market,  and  we  thus  b»camc 
a  public  company.  I  think,  therefore,  that  this  would  be  an 
opportunity  to  say  a  few  words  as  to  the  past  history  of  vour 
company  in  its  relation  to  the  future  which  we  anticipate'  for 
it.  This  company  was  formed  a  good  many  years  ago  to 
exploit  an  invention  for  the  production  of  cyanide  frorn  gas 
liquor.  T  have  been  personally  associated  with  the  company 
from  the  beginnine,  and  for  some  years  now  as  its  chairman, 
and  I  h.-ive,  therefore,  followed  it  through  all  its  trials  and 
difScuIties,  and  it  seems  to  me  that  fn  our  effort  to  over- 
come  tlie  many  difficulties   connected   with  the  economic   and 


competitive  production  of  cyanide  from  gas  liquor  we  have  ac- 
complished something  more  than  succes.s  in  that  particular 
business.  What  1  refer  to  is  this  :  We  have  first  trained  our 
managing  director,  Mr.  Kenneth  Chance,  and,  in  the  many 
trials  through  which  he  had  to  go  as  quite  a  voung  man  in 
overcoming  the  difficulties  I  have  referred  to,  he  has  attained 
that  self-reliance  which  enables  him  to  handle  without  fear  and 
with  considerable  optimism  the  many  difficult  problems  with 
which  he  is  confronted  from  day  to  day  under  our  new  condi- 
tions. We  have  also  trained  in  Mr.  A.  Doherty,  our  general 
manager,  a  man  who  has  been  associated  with  us  from  the 
start,  and  a  devoted  servant  of  the  company,  who  again  stands 
undefeated  before  what  sometimes  appear  to  be  insurmountable 
difficulties.  In  our  research  department  the  work  of  Mr.  Rossiter 
and  his  assistants  has  solved  many  delicate  problems  during 
those  past  years,  with  the  result  that  we  have  to-day,  for  our 
size,  a  re.search  department  of  an  exceptionally  valuable  char- 
acter. In  Mr.  Fullagar,  our  mechanical  engineer,  we  have 
developed  a  man  capable  of  producing  a  factory  such  as  the 
new  potash  fastory,  which  is  admitted  on  all  hands  to  be  an 
extraordinarily  efTicient  and  up-to-date  production.  This  doe-:, 
not  surpri.se  me  when  I  recollect  the  many  alterations  and 
changes  due  to  new  businesses  and  new  developments  which 
have  been  in  Mr.  FuUagar's  hands  in  the  course  of  the  de- 
velopment of  our  business  to  its  present  stage.  And,  finally, 
we  have  in  Mr.  Bishop,  whom  I  may  describe  as  our  busines.* 
head  at  the  works,  an  admirable  servant  who  has  shown  his 
ability  in  many  ways.  These  gentlemen  to-day  form  our  genera? 
staff,  and  under  their  supervision  the  work  of  the  British 
('yanides  and  its  allied  companies  is  carried  on.  I  think  I 
should  not  conclude  these  remarks  as  to  onr  personnel  without 
referring  to  the  remarkable  group  of  foremen  who  have  gradu- 
ally been  accumulated  during  the  past  years.  I  believe  tl^t  for 
devotion  to  the  company  and  for  the  excellence  of  their  work 
they  are  second  to  none.  I  hope  you  will  not  think  that  in- 
passing  the  staff  through  this  somewhat  eulogistic  survey  I 
have  .somewhat  overstepped  the  bounds  of  modesty,  but  I  do  feeV 
that  at  this  moment,  when  we  are  entering  upon  a  new  career, 
1  believe,  of  usefulness  to  the  State,  it  is  only  fair  that  the 
shareholders  should  know  something  of  the  personnel  on  which 
they  may  rely  for  the  .success  of  our  efforts.  Now,  gentlemen, 
there  is  no  doubt  whatever  that  it  was  this  .staff  to  which  I 
have  referred,  together  with  the  extremely  fortunate  fact  that 
we  had  at  our  disposal  the  new  works,  which  enabled  us  to 
grapple  .so  successfully  with  the  problem  of  .supplying  the 
country's  needs  with  many  of  the  refined  chemicals  which  up 
to  the  war  had  been  monopolised  by  Germany.  Personally  I 
regret  that  one  of  the  inevitable  re.sults  of  this  was  to  put  in 
the  background  temporarily  our  barium  process,  in  which  <.ur 
technical  advisers  retain  the  fullest  confidence.  At  the  same 
time,  there  is  no  doubt  whatever  that  we  cannot  undertake  to. 
develop  that  new  process  at  the  same  time  as  we  undertake  to. 
develop  the  many  new  processes  necessary  to  meet  the  require- 
ments I  have  mentioned.  The  choice  had  to  be  made,  and  I 
think  the  right  choice  was  made,  and  from  the  opening  of  the 
war  we  turned  'our  attention  to  the  development  of  these  new 
products.  That  we  have  been  successful  in  this  effort  is  shown 
by  the  figures  contained  in  your  balance-sheet,  but,  gentlemen, 
while  those  figures  are  highly  satisfactory  we  have  always  had 
in  view,  with  every  product  which  we  undertook,  the  time  when 
competition  would  again  have  to  be  met,  and  the  closest  pos- 
sible study  has  been  made  of  the  cost  of  production  so  as  to 
enable  us  to  form  a  fairly  sound  judgment  as  to  whether  or 
not  we  shall  be  in  the  position  after  the  war  to  continue  the 
manufacture  of  these  products  in  the  face  of  competition.  I 
am  glad  to  say,  and  I  think  I  am  correct  m  stating,  that  in 
the  great  majority  of  instances  we  are  firmly  convinced  that  we 
shall  be  able  to  meet  every  difficulty  of  fair  competition.  Now, 
gentlemen,  it  may  seem  that  with  all  the.se  new  matters  in  hand 
we  should  hardly  have  had  either  the  time  or  energy  to  tackle 
another  problem,  which,  while  it  directly  interests  your  com- 
pany, is  nevertheless  a  new  problem  of  a  very  important  char- 
acter. I  refer  to  the  development  of  the  potash  industry  in  this 
countrj'.  No  doubt  you  will  have  all  taken  the  opportunity  of 
reading  the  addresses  of  Mr.  Leigh  and  Mr.  Chance  on  the 
oiigin  and  development  of  this  industry,  and  you  are  aware 
that  this  company,  in  association  with  the  North  Lincolnshire 
Iron  Co.  and  others,  have  combined  with  the  Government  to- 
form  a  company  to  develop  the  potash  industry  on  the  lines 
indicated  in  those  two  addresses.  I  am  glad  to  say  that,  not- 
withstanding the  great  demands  upon  our  managing  director 
and  the  general  staff,  they  have  by  careful  organisation  been 
enabled  to  undertake,  in  conjunction  with  the  Government  Potash 
Branch,  the  development  of  this  most  important  and  vital  pro 
duct  without  interfering  with  the  progress  of  your  company's 
other  work,  and  I  cannot  help  remarking  at  this, 
momeiit  that  it  is  really  wonderful  that,  while  all 
ihe.se  new  developments  have  been  taking  place,  the  whole 
of  our  old  works  has  practically  been  reorganised  and  re- 
arranged and  brought  up  to  modern  lines  of  efficiency.  Now, 
trentlemen,  there  was  one  grave  difficulty  with  which  this 
company  wns  faced,  and  which  I  recognised  on  every  visit  to 
our  works,  and  that  was  that  we  were  getting  daily  more  and' 
more  cramped  for  space,  and  I  must  say  that  I  looked  on  manv 
occasions  with  envious  eyes  on  a  large  open  space  of  land  which 
adjoined  our  new  works.  I  found  on  inquiry  that  this  Ian«t" 
belonced  to  Fred  Danks.  Ltd.  Now.  our  managinij  director 
looked  with  longing  eyes  on  this  ground  much  more  frequently 
than  T  did,  wltfi"  the  result  that  one  day  he  found  himself  in 
the  happy  position  of  being  able  to  tell  me  that  he  thought  it 
was  possible  ta  secure  the  ground.     The  news  was  ahnoSt  too* 


Jlne  29,  1918. 


Cbe  Jnvestors  iRevtew. 


643 


■good  to  be  true,  and  I  said  at  once,  "  Only  on  absolutely  im- 
possible terras,  1  euppose?"  He  said,  "No.  I  think  it 
means  that  we  Have  got  to  buy  Fred  Danks,  Ltd.,  lock,  stock 
and  barrel."  Well,  gentlemen,  this  was  a  nice  little  proposition, 
becau.se  it  meant  something  lilge  ;^6o,ooo  to  ^'70,000,  and  not 
many  years  ago  that  would  have  seemed  to  us  an  impossible 
proposition.  It  djd  not  take  us,  however,  very  long  to  decide 
that,  subject  to  very  close  examination  of  the  position  of  Fred 
Danks,  Ltd.,  we  would  buy  the  business  as  proposed,  and  I 
think  that  you  will  approve  of  the  decision  to  which  the  board 
has  come,  because  by  means  of  it  we  have  entirely  freed  our- 
selves from  t'nis  grave  difficulty,  and  we  have  now  at  our  dis- 
posal ample  space  for  our  extension  in  the  most  convenient  spot 
possible.  The  land  is  situated  on  the  banks  of  the  canal,  it 
faces  the  new  British  I'otash  Works  on  the  one  side  and  adjoins 
-our  new  works  on  the  other  side,  and  the  railway  siding  runs 
direct  into  the  factory  of  Fred  Danks,  Ltd.  We  are  taking  steps 
to  improve  the  canal  wharves,  and  I  think  it  will  add  greatly 
to  the  efficiency  of  our  works  in  general.  In  addition  to  this,  I 
do  not  think  it  is  likely  to  turn  out  at  all  an  unsatisfactory 
purchase  from  the  purely  business  point  of  view,  although  it  is 
not,  of  cour.se,  on  this  ground  that  the  board  decided  to  pur- 
chase it.  I  think,  gentlemen,  that  you  will  agree  that  the 
position  at  which  v.e  have  arrived  certainly  shows  considerable 
•enterprise  on  the  part  of  this  company,  and  has  shown  con- 
clusively that  we  are  alive  to  our  responsibilities  to  the  State 
in  using  to  the  fullest  extent  those  qualities  which  we  have 
acquired  during  the  strenuous  early  years  of  the  company's 
existence,  and  that  leads  me  to  a  further  point,  on  which  I 
should  like  to  feel  that  the  shareholders  are  entirely  at  one  with 
the  board.  In  the  course  of  the  developments  which  we  have 
undertaken  we  have  naturally  been  brought  into  contact  with 
many  of  the  great  chemical  industrial  firms  who  are  working 
to-day.  Now,  while  it  is  our  desire  to  work  harmoniously  and 
as  closely  as  possible  with  all  our  friends  in  the  chemical 
industry,  and  to  develop  the  chemical  industries  of  this  country 
to  the  highest  possible  point  by  pooling  as  far  as  possible  the 
knowledge  which  is  acquired  by  all,  it  is  very  clearly  the  opinion 
of  your  board  that  we  have  stood  alone  during  the  period  of 
difficulty  and  stress,  and  that  we  have  accordingly  earned  the 
right  to  stand  alone  in  the  future,  and  it  is  our  intenti<m,  if 
we  are  spared  for  that  purpose,  to  do  all  that  is  in  our  power 
to  place  your  company  in  the  forefront  of  the  chemical  indus- 
tries, and  become  recognised  as  one  of  the  live  and  increasing 
factors  in  the  chemical  trade.  Now,  gentlemen,  before  closin" 
there  is  one  subject  which  I  have  very  deeply  at  heart,  and 
which  is  referred  to  towards  the  end  of  our  report — the  con- 
sultative committee,  'fhe  formation  of  this  committee  has,  I 
think,  been  fully  explained  to  you,  and  I  am  glad  to  say  that 
we  are  feeling  increasingly  the  benefit  of  the  formation  of  that 
committee.  _  I  am  exceedingly  pleased  to-day  to  welcome  two 
representatives  of  the  committee  at  this  meeting,  and  I  hope 
that  they  will  convey  to  their  colleagues  on  the  committee  and 
to  the  whole  of  the  workmen  the  great  appreciation  of  the 
board,  and  I  am  sure  I  may  include  the  shaieholders  in  this 
word  of  appreciation,  of  the  excellent  work  which  has  been 
■carried  out  by  them  during  the  past  year.  Personally,  I  have 
the  greatest  hope  that  further  developments  on  the  lines  of  the 
consultative  committee  will  more  and  more  tend  to  increase 
the  tie  of  friendship  which  exists  between  the  board,  its 
managing  director  and  the  whole  of  our  workmen.  I  am  sure 
that  the  shareholders  wiTI  be  pleased  to  learn  that  one  of  the 
side  issues  to  which  the  company  propose  to  devote  their 
attention,  as  soon  as  it  is  possible  to  do  so,  is  the  development 
■on  generous  lines  of  a  satisfactorv  scheme  for  recreation,  under 
the  direction  of  the  consultative  "committee. 

Mr.  Kenneth  M.  Chance  (managing  director),  in  seconding 
the  motion,  said  that  the  company  had  just  succe.ssfully  passed 
one  of  those  crises  which  materially  influenced  the  history  of 
any  industrial  concern.  The  latest  of  the  six  fundamental  diflS- 
•culties  with  which  they  had  been  faced  had  been  solved  during 
the  financial  year  under  review  by  the  acquisition  of  the  firm 
•of  Fred  Danks,  Ltd.  During  the  past  year  the  requirements  of 
Government  departments  had  been  urgent  and  insistent  for  the 
production  by  this  company  of  new  chemical  compounds,  and 
.a  largely  increased  production  of  some  of  those  compounds  the 
manufacture  of  which  had  been  undertaken  by  the  company 
■during  the  last  two  or  three  years.  The  new  factory  which 
was  completed  just  before  the  outbreak  of  war  had  enabled  them 
to  take  up  these  new  developments,  but  the  plant  and  the  build- 
ings at  their  disposal  are  already  overcrowded,  and  they  had 
no  space  available  for  further  extension  without  jeopardising 
the  safety  of  the  company's  existence  by  occupying  with  plant 
and  buildings  the  land  given  up  to  the  storage  of  coal.  They 
had  now  room  to  expand  where  before  they  were  terribly 
cramped,  and  the  work  which  had  been  done  during  the  past 
few  years  in  the  laboratory  and  factories  of  the  company  had 
given  almost  unlimited  opportunities  for  expansion.  In  practic- 
ally all  the  new  products  which  they  were  making  and  had  in 
view  their  ultimate  aim  was  to  capture  and  hold  trade  which 
was  formerly  monopolised  by  Germany.  So  far  as  he  was  aware 
the  manufacture  of  permanganate  of  potash  had  never  previ- 
ously been  carried  out  on  a  large  -scale  in  this  country,  and 
the  manuf,acture  of  red  prussiate  of  potash  was  confined  to 
■Germany  for  many  years  prior  to  the  war.  The  company  was 
now  making  the  latter  chemical  on  a  .scale  sufficient  not  only 
to  meet  the  requirements  of  this  country,  but  to  permit  of  export 
to  our  colonies  and  Allies,  and  they  were  already  making  per- 
manganate of  potash  in  large  and  increasing  quantities,  while 
the  standard  of  purity  which  they  had  reached  in  these  chemi- 


cals was  at  least  as  high  as,  if  not  higher  than,  anything  reached 
by  the  Germans.  In  the  manufacture  of  pure  carbonate  of 
potash  they  were  told  that  their  product  posses.sed  qualifications 
which  were  superior  to  any  hitherto  purcha.sed  from  Germany. 
They  were  making  other  chemicals,  of  course,  and  up  to  the 
present  research  work  in  the  laboratory  had  kept  well  ahead  of 
developments  in  the  factory,  so  that  they  had  new  processes 
waiting  for  them  to  take  up  for  the  manufacture  of  still  more 
products  whose  secrets  had  hitherto  been  jealously  guarded  by 
Germany.  The  alterations  to  plant  at  their  Tat  Hank  factory, 
for  which  the  shareholders  provided  funds  a  year  ago,  involved 
taking  out  the  whole  power  system  on  which  that  factory  de- 
pended, and  replacing  it  with  absolutely  modern  plant,  with 
the  result  that  they  were  now  producing  largely  increased 
quantities  of  chemicals  at  that  factory,  and  at  the  same  time 
were  saving  coal  to  the  extent  of  some  thousands  of  tons  per 
annum.  It  reflected  great  credit  on  the  staff  at  Oldbury  that 
he  was  able  to  state  that  not  only  was  production  not  curtailed 
while  this  fundamental  alteration  was  taking  place  (contem- 
poraneously with  the  work  of  building  the  I'otash  Co.'s  factory), 
but  that  the  value  of  the  goods  turned  out  during  the  four 
months  when  the  boilers  were  being  taken  out  and  replaced, 
slightly  exceeded  the  value  of  the  output  in  any  previous  six 
months  in  the  history  of  the  company.  Its  influence  on  output 
was  further  shown  by  the  fact  that  during  the  first  five  months 
of  this  year,  1918,  the  increase  in  value  of  output  over  that  of 
the  same  period  of  iqiy  had  been  equal  to  the  total  value  of  the 
output  of  the  company  during  the  fir.st  five  months  of  ini;, 
and  to  that  of  the  first  seven  months  of  1013  and  1914.  These 
figures  were,  of  course,  inflated  by  the  high  values  at  present 
ruling,  both  for  raw  materials  and  for  finished  products,  but  it 
was  the  intention  of  the  board  to  adhere  to  their  policy  of  re- 
ducing prices  so  soon  as  their  output  and  cost  of  production  of 
each  article  permitted  of  their  doing  so.  and  he  hoped  that 
during  the  coming  year  a  considerable  reduction  might  be  made 
in  the  market  prices  of  several  articles  manufactured  exclusively 
by  this  company.  It  was  at  least  satisfactory  to  be  able  to  report 
the  fact  that  yellow  prussiate  of  potash,  of  which  they  were 
the  only  makers  in  this  country,  was  singled  out  for  exceptional 
comment  in  the  annual  review  for  1917  in  the  Chemical  Trades 
Jouffial  as  being  the  one  chemical  whose  price  had  been  sub- 
stantiallv  reduced  during  that  vear.  The  object  of  the  board 
would  be  to  meet  the  national  demands  for  war  pjrrposes 
while  the  war  continued,  and  thereafter  to  meet  any  competition 
that  might  have  to  be  faced,  and  that  could  only  be  done  by  in- 
creasing oroduction  and  reducing  in  every  possible  way  the  cost 
of  manufacture. 

.^fter  some  congratulatory  rsffiaiks  /vom  shareholders,  and  a 
brief  discussion  as  to  the  issue  of  oreference  shares,  the  resolu- 
tion was  carried  unanimously,  and  the  dividends  recommended 
were  declared. 


TREDEGAR    IRON    AND    COAL    COMPANY. 
LIMITED. 

The  forty-fifth  annual  general  meeting  of  the  Tredegar  Iron 
and  Coal  Co.,  Ltd.,  was  held  on  Friday  at  the  company's 
offices,  60,  Fenchurch  Street,  E.C.,  the  Rt.  Hon.  Lord  Aber- 
conway   (chairman)  presiding. 

The  Secretary  (Mr.  H.  O.  Monkley)  read  the  notice  conven- 
ing the  meeting  and  the  auditors  report. 

The  Chairman  :  In  dealing  with  the  company's  operations, 
said  he  thought  he  might  say  with  truth  that  the  year  was  one 
of  the  most  difficult  ever  experienced  in  the  South  Wales  coal 
trade.  They  had  had  great  scarcity  of  tonnage,  and  railway 
facilities  were  so  restricted  that,  although  there  was  a  very 
large  home  demand  for  coal,  it  could  not  be  conveyed  nor  the 
empties  returned  in  a  manner  to  make  good  the  shortage  of 
shipping.  In  fact,  they  were  hit  on  both  sides  at  once.  He 
was  glad  to  say,  however,  that  during  the  last  few  weeks  there 
had  been  a  marked  improvement  in  the  supply  of  tonnage,  load- 
ing wa-s  going  on  very  briskly,  and  there  were  now  sufficient 
steamers  to  provide  full  work"  for  their  collieries.  In  spite  o£ 
all  difficulties  the  combined  output  of  their  collieries  for  the 
year  showed  a  decrease  of  slightly  over  3  per  cent,  only  com- 
pared with  that  of  the  previous  twelve  months,  and  this  was 
really  due  to  the  effect  of  the  .stoppages  to  which  he  had  re- 
ferred, some  of  which  he  was  sorry  to  say  were  brought  about 
by  strikes  of  workmen  who  in  every  case  ceased  work  without 
notice  and  in  disregard  of  the  machinery  for  dealing  with  dis- 
putes which  had  been  set  up  by  the  Conciliation  Board.  A 
■further  advance  in  wages  was  conceded  by  the  Controller  ot 
coal  mines  last  autumn  in  the  form  of  a  war  wage  of  is.  6d 
per  day  to  all  employees  at  the  collieries  of  sixteen  years  of 
age  and  over,  and  of  qd.  per  day  to  those  below  that  age. 
Within  the  last  few  days  the  Controller  had  met  a  further 
demand  from  the  men  for  an  increased  flat  rate  by  offering 
them  a  sum  which  they  appeared  to  be  unwilling  to  accept, 
but  he  thought  they  might  take  it  for  certain  that  soinething 
would  be  given  in  the  way  of  an  increased  wage  during  the 
next  few  weeks.  In  order  to  meet  the  additional  burden  thus 
thrown  on  the  collieries  the  Controller  had  authorised  an  extra 
2S.  6d.  per  ton  last  autumn  on  the  price  of  coal  of  all  classe'i, 
except  coal  exported  to  allied  countries.  The  result  was  that 
Welsh  coal  was  placed  at  a  considerable  disadvantage  in  price 
compared  with  coal  from  other  parts  of  the  country,  because 
nearly  the  whole  of  our  foreign  output  from  South  Wale.s  was 
for  France  or  Italy.  While  from  the  Humber  ports  and  ^'Orth- 
Kast  Coast  shipments  were  made  to  neutrals  at  very  high 
figures,  thev  in  South  Wales  were  compelled  to  ship  very  large 


644 


Ubc  Jnvestors'  IReview. 


Jl  NE  2y,   1918. 


quantities  at  a  price  relatively  less  than  what  they  could  have 
got  at  home.  Within  the  last  few  days,  however,  the  difficulty 
had  been  met.  In  addition  to  another  2s.  6d.  per  ton  which 
had  been  authorised  by  the  Coal  Controller  for  home  markets, 
he  had  authorised  5s.  for  coal  sent  to  France  and  Italy,  with 
the  result  that  Welsh,  coal  would  stand  for  the  present  on  the 
same  footing  as  coal  from  other  ports  of  the  country.  The  men 
engaged  at  the  company's  engineering  works  and  steel  mill 
had  received  advances  in  the  form  of  war  wage  or  war  bonus 
of  approxiinately  :os.  6d.  per  man  per  week.  With  regard  to 
the  general  position  of  the  control  o£  coal  mines,  the  agreement 
to  which  he  referred  last  year,  which  was  then  simply  an  agree- 
ment between  the  Coal  Controller  and  the  representatives  of 
the  different  colliery  districts,  had  now  been  given  legislative 
effect  to  by  Act  of  Parliament.  On  the  whole  he  thought  the 
trade  had  no  reason  to  complain  of  the  incidence  of  the  tax. 
They  felt  bound  to  pay  what  they  could  for  carrying  on  the 
war  so  long  as  they  had  no  undue  interference  with  the  details 
of  their  business,  and  he  thought  that  speaking  generally  that 
had  not  occurred,  and  they  rather  welcomed  in  many  ways  the 
control  which  had  been  esUiblished.  With  regard  to  the  ques- 
tion of  excess  profits,  the  bfjard  were  applying  for  a  substi- 
tuted standard  for  Oakdale  and  Markhara  Collieries  on  the 
ground  that  both  these  concerns  were  in  a  state  of  development 
during  the  pre-war  or  standard  period,  and  he  hoped  the 
result  of  that  would  be  to  give  them  a  little  more  advantage 
from  these  investments.  Of  course,  their  costs  had  gone  up 
substantially,  not  merely  in  respect  of  wages,  but  in  stores. 
Then  they  had  suffered  from  the  loss  of  men.  Up  to  the  end 
of  the  financial  year  2,591  of  their  men  had  joined  the  Forces, 
while  the  members  of  their  official  staff  who  had  joined  up 
numbered  52.  He  regretted  to  say  that  no  fewer  than  174  of 
their  men  had  lost  their  lives  during  the  war.  They  continued 
to  pay  allowances  to  the  dependents  of  those  men  who  joined 
the  Forces  prior  to  July,  igij,  and  the  total  amount  so  paid 
was  /i'4S,i45.  As  the  result  of  the  new  comb-out  by  the  Govern- 
ment 75,000  more  men  would  be  taken  from  among  those  en- 
gaged in  the  coal-mining  industry,  and  this  company's  quota 
would  number  410.  It  was  contemplated  dealing  with  the  com- 
pany's large  stocks  of  raw  small  coal  at  Oakdale  and  Mark- 
ham  by  means  of  a  washery,  and  they  had  practically  secured 
the  permission  of  the  Coal  Controller  to  erect  one.  For  some 
time  the  board  had  been  considering  the  formation  of  a  pension 
scheme  for  the  benefit  of  the  official  and  clerical  staff  and  the 
officials  at  the  collieries  and  works,  as  they  had  always  felt  that 
those  men  who  had  devoted  their  lives  to  their  services,  and  in 
many  cases  got  less  pay  than  the  colliers,  ought  to  be  provided 
with  a  retiring  pension.  The  .schemes  which  it  had  been 
decided  to  put  in  operation  provided  .substantial  annuities  to 
the  officials  on  their  retirement  at  sixty-five  years  of  age,  with 
an  option  of  retiring  at  sixty  years.  W^ith  regard  to  the 
OeUygroes  property  which  was  taken  over  by  them  last  year, 
they  were  carrying  out  certain  exploratory  work  in  one  of  the 
upper  seams,  and  this  work  was  proceeding  satisfactorily.  They 
had  to  go  slowly  at  present,  but  in  the  course  of  a  few  years 
he  thought  they  would  have  a  colliery  there  which  would  pro- 
vide a  satisfactory  addition,  and  he  hoped  a  profitable  addi- 
tion, to  their  output.  In  conclusion,  he  moved  the  adoption 
of  the   report  and  accounts. 

Col.    A.    K.   Wyllie,   C'.B.,   seconded   the  motion,   which  was 
carried   unanimously. 


SCOTTISH    EQUITABLE    LIFE    ASSURANCE 
SOCIETY. 

The  87th  annual  general  meeting  was  held  in  Edinburgh  on 
Monday,  the  24th  inst.,  Mr.  Thomas  Hennet  Clark,  C.A.,  the 
senior  ordinary  director,   in  the  chair. 

The  Chairman,  in  moving  ithe  adoption  ot  the  report,  re- 
marked that  it  was  of  double  interest,  as  it  showed  not  only 
the  transactions  of  the  pnst  year,  but  also  the  financial  position 
of  the  society  at  the  end  of  a  quinquennial  period  which  had 
been  profoundly  affected  by  financial  disturbances  due  to  the 
war.  As  to  new  business,  the  directors  were  able  to  present  a 
very  gratifying  report.  The  new  assurances  amounted  to 
;f  ^'3j5r° ;  deducting  re-assurances  the  nett  amount  was  larger 
than  for  many  years  past,  and  about  ^^50,000  in  excess  of  the 
previous  year,  while  the  new  premiums  exceeded  last  year's 
amount  by  about  20  per  cent. 

The  premium  income  was  ^^460,000,  or  ^f  14,000  in  excess  ot 
last  year's  figures.  The  income  from  interest,  dividends,  &c., 
had  increased  by  ^15,000,  chiefly  owing  to  the  higher  rates  of 
interest  obtainable  on  investments  ;  but,  on  the  other  hand,  there 
was  an  increase  in  the  amount  of  income-tax  from  /'44,So6  to 

The  claims  by  death  were  within  the  expectation,  although 
losses  among  the  members  by  the  casualties  of  war  had  entailed 
claims  to  the  amount  of  ^^37,000.  The  endowment  claims  were 
slightly  less  than  those  of  the  previous  jear,  and  not  a  few  of 
the  members  who  lived  to  receive  their  policy  moneys  had  em- 
oloyed  them,  or  part  of  them,  in  effecting  new  assurances  with 
the  society.  Surrenders  were  ^12,000  less  than  last  year,  and 
rather  below  the  level  of  pre-war  times.  Annuity  payments  were 
a  trifle  less  than  last  year.  Commission  and  expenses  of  manage- 
ment (including  the  extra  expenses  of  the  quinquennial  investi- 
gation) were  a  trifle  higher,  being  13  p>er  cent.,  as  compared 
with  i2.<)  per  cent,  last  year. 

In  the  balance-sheet  the  most  arresting  item  was  the  large 
amount  now  invested  in  War  Loan  securities — ;f2, 148,000.  In 
pursuance  of  what  they  believed  to  be  sound  financial  policy, 


as  well  as  a  patriotic  duty,  the  directors  had  continued  to 
subscribe  to  the  various  Government  war  issues  practically  the 
whole  of  the  money  coniing  into  their  hands  from  repayments 
and  realisations  of  securities,  as  well  as  from  ordinary  surplus 
revenue.  The  holding  in  war  .■securities  now  amounted  to  no 
less  than  35  per  cent,  of  the  total  assets  of  the  society. 

Speaking  of  the  quinquennal  investigation,  the  chairman 
remarked  that  at  the  time  of  the  last  investigation,  five  years 
ago,  everything  was  promising.  They  were  able  to  declare  a 
bonus  at  the  rate  of  30s.  per  cent,  per  annum  on  the  sums 
assured  and  existing  bonuses,  a  rate  which  the  srx;iety  had 
hardly  ever  exceeded,  and  the  prospects  were  then  so  good  that 
they  entertained  no  misgiving  as  to  their  ability  to  maintain 
a  similar  rate  in  the  future.  All  the  elements  that  contribute  to 
profit-making  were  in  favour  of  that  anticipation.  Investments 
had  been  written  down  to  what  were  then  considered  bed-rock 
values,  the  rate  of  mortality  was  low,  the  expenses  were  only 
about  two-thirds  of  the  rate  provided  for  in  the  calculations, 
and  the  nett  rate  of  interest,  after  deducting  tax,  was  about 
one-third  more  than  the  rate  anticipated  in  valuing  the  liabili- 
ties. Then  a  year  later  came  the  war,  and  the  whole  aspect 
of  things  was  at  once  changed.  It  became  evident  that  they 
would  have  to  reckon  with  an  increased  mortality  among  the 
members,  as  many  of  them  would  volunteer  or  be  c^led  upon 
for  active  service ;  that  the  expenses  of  the  war  would  inevitably 
lead  to  a  higher  rate  of  income-tax,  which  would  counter- 
balance the  advantage  to  be  expected  from  higher  rates  of 
interest;  and  that  there  would  bo  a  great  shrinkage  in  the 
value  of  their  investments.  All  these  things  had  happened  in 
larger  measure  than  could  have  been  foieseen  at  the  outset, 
when  no  one  anticipated  so  long  and  '-ostly  a  war  as  this 
has  proved. 

War  claims  had  amounted  to  ^J  125,000,  and  allowing  for  all 
the  extra  premiums  received,  and  the  accumulated  reserve  on 
those  particular  policies,  the  nett  loss  under  this  head  was  about 
,^75,000.  Sums  that  were  rarri<2d  to  suspense  account  after  the 
war  began,  as  a  provision  against  loss  on  investments,  were 
more  than  swallowed  up  by  .shortages  upon  securities  sold  at 
the  reduced  market  prices,  and  there  had  been  lost  under  this 
head  ^73.000.  Those  realisations  were  effected  largely  with  a 
view  to  helping  the  Government  in  its  war  finance,  and  they 
had  proved  fortunate  in  so  far  that,  if  they  had  not  been 
carried  out  when  they  were,  the  loss  would  have  been  sub- 
stantially greater.  Finally,  at  the  rlo.se  of  the  quinquennium 
the  directors  found,  on  a  careful  revision  of  the  remaining  in- 
vestments— as  sound  a  list  of  securities  they  think,  as  maj" 
be  found  anj'where — ^that  these  had  depreciated  in  value  by  no 
le?3  than  ^444,000.  AH  these  things  had  tended  to  wipe  out 
profits,  ?,nd  it  was  not  surprising  in  the  circumstances  that 
the  directors  had  to  announce  that  on  this  occasion  there  could 
be  no  division  of  profits  to  follow  the  investigation.  But  for 
the  untoward  circumstances  arising  out  of  the  war,  instead  of 
merely  carrying  forward  ;^64,ooo  in  reserve  as  the  report  stated. 
they  would  have  had  a  surplus  of  ten  times  that  amount,  much 
more  than  sufficient  to  provide  the  30s.  bonus  on  which  expecta- 
tion had  been  fixed  before  the  war. 

W'hile  the  interests  of  the  society  and  its  present  members 
had  been  the  primary  consideration  in  the  course  followed 
throughout  this  investigation,  the  situation  now  created  was 
very  favourable  for  new  insurers.  They  would  join  the  society 
at  a  time  when  investment  values  were  at  a  low  ebb,  and  when 
everything  had  been  put  in  order  for  profit-earning,  so  that 
their  prospects  were  of  the  best. 

The  adoption  of  the  report  was  .seconded  by  Mr.  George 
Readman.  advocate,  and  unanimously  agreed  to. 

Mr.  Thomas  Bennet  Clark  and  Brigadier-General  R.  G. 
Gordon  Gilmour  were  re-elected  ordinary  directors,  and  Mr. 
J.  Hamilton  Buchanan,  C.A.,  was  re-elected  auditor  of  the 
society. 


ANTOFAGASTA    (CHILI)    ANDTBOLIVIA 
RAILWAY. 

The  annual  general  meeting  of  the  .-Viitofagasta  (Chili)  and 
Bolivia  Company,  Ltd.,  was  held  on  'iuesday  at  Winchester 
House,  F.C.,  under  the  presidency  of  the  Hon.  Charles  N. 
Lawrence  (the  chairman  of  the  company). 

The  London  Manager  and  Secretary  ;Mr.  A.  W.  Boldent 
having  read  the  notice  and  the  auditors'  report, 

The  Chairman  said  that  he  once  ;igain  had  the  pleasure  to 
announce  that  the  gross  receipts  of  the  company  Fad  beaten 
all  former  records,  the  previous  highijst  having  been  those  of 
1916.  F'rom  the  combined  undertaking  ot  their  railway  and 
waterworks  the  gross  receipts  for  the  year  1917  were  ;^2, 239,384. 
or  ^^386, 729  in  exce.ss  of  those  of  the  previous  year,  but  out  of 
the  ;^'3S6,729  they  had  only  secured  £i3g,$S3  as  incre.osed  profit, 
the  ratio  of  working  expenses  to  gross  receipts  having  been 
55.91  per  cent.,  against  54. 24  per  cent,  for  the  previous  year. 
So  far  as  nitrate  tonnage  carried  was  concerned,  it  was  interest- 
ing, he  thought,  to  remark  that  the  company  were  7,907  tons 
short  of  the  previous  year's  total,  the  figures  being  1,047,445 
tons  in  1917  and  1,055,352  tons  in  iqi6.  It  was  even  more  in- 
teresting to  remark  that  of  the  total  nitrate  of  soda  exported 
from  Chile  last  year  the  company  carried  over  their  own  line 
and  that  of  the  Aguas  Blancas  Railway  combined,  as  nearly  as 
possible  45  per  cent.  Minerals  had  also  continued  to  do  very 
well.  Generally  speaking,  he  thought  that  the  net  lesults  of 
the  year's  working  might  be  looked  upon  as  satisfactory,  taking 
all  the  difficult  circumstances  into  account,  but  the  financial 
results  were  by  no   means  better  than  they  should   be,  when 


JlNE   29,    1918. 


^be  Jnvestors'  IRevtew. 


64s 


bearing  in  mind  that  their  traffic  might  be  said  to  be  of  a 
mixiing  character,  and  the  future  had  to  be  regarded  in  the 
shape  of  providing  for  amortisation  of  prior  charges  at  least. 
I'he  nitrate  and  other  companies  which  the  company  served 
worked,  he  believed,  on  that  basis,  and  therefore  they  who 
carried  those  companies'  products  equally  considered  that  the 
tariffs  should  be  based  not  only  upon  a  fair  return  on  the  capital 
invested  in  the  business,  but  on  an  amount  which  should  pro- 
vide for  the  amortisation  of  that  capital.  He  wished  to  empha- 
sise that  remark.  It  was  true  that,  so  far  as  the  company  was 
concerned,  the  directors  hoped  there  were  other  fieldsi  of 
development,  and  they  looked  also  to  Bolivia  ;  in  fact,  that  was 
the  reason  why  they  went  into  the  business  of  the  Bolivia  Rail- 
way Company;  but,  all  the  same,  he  was  convinced  that  his 
arguments  were  sound  and  equitable  until  they  could  see  more 
clearly  what  the  future  had  in  store  for  them.  The  prosperity 
of  the  two  countries  in  which  the  company  operated,  but  especi- 
:tlly  in  Chile,  had  grown  considerably  in  the  last  iS  months,  and 
their  trade  balances  must  be  very  much  in  their  favour.  Ex- 
I  hange  in  both  countries  was  high,  and,  while  it  was  difficnlt 
to  attempt  any  forecast,  one  was  bound  to  feel  that  while  pre- 
sent conditions  coritinued  they  would  be  of  benefit  to  those  two 
.  ountries.  The  company  had  made  a  not  addition  to  the  renewal 
funds  in  the  past  year  of  ;^qS,8o7,  and  in  building  up  that  fund 
as  they  were  doing  the  directors  thought  that  the  stockholders 
would  be  in  entire  agreement,  because  it  would  help  the  bo.ird 
^t  the  proper  time  to  face  the  acquisition  of  new  rolling  stock 
and  generally  improve  the  line,  to  meot  new  developments  which 
might  arise,  i)esides  providing  for  any  unascertained  wear  and 
tear  of  the  company's  property.  The  reserve  fund  got  another 
^150,000,  bringing  it  up  to  ^1,400,000,  and  it  was  the  dircctorii' 
intention  to  invest  just  as  much  as  they  possibly  could  outside 
the  business,  in  order  to  have  cash  resources  to  fall  back  upon 
-hould  occasion  demand.  The  staff  benevolent  fund  received 
a  further  contribution  of  ;f25,ooo,  which,  with  interest  on  in- 
vestments, made  this  fund  ju.st  over  ;^4i;,ooo.  Despite  the  fact 
that  they  could  have  paid  larger  dividends  in  respect  of  the 
years  1915  and  igi6  than  they  did,  the  directors  v/isely  decided 
to  conserve  the  company's  resources,  but  with  the  results  of 
1017  before  them,  they  concluded  that  the  business  thoroughly 
warranted  some  increased  distribution  to  the  ]jr,Tprietors.  The 
question  was  how  this  could  best  be  done.  While  being  anxious 
to  give  some  increa.se  in  the  dividend,  they  came  to  the  con- 
clusion that  this  could  not  entirely  be  done  in  cash,  in  order 
not  to  deplete  unduly  the  company'.';  ca.sh  funds.  They  there- 
fore decided  to  pay  the  deferred  stockholders  a  iinal  dividend 
of  7i  per  cent.,  making  with  the  interim  dividend  10  per 
cent.,  in  cash,  and  the  pseferred  5  per  cent,  in  cash,  which  had 
already  been  met  by  the  two  payments  of  2.J  per  cent,  each 
made  in  July  and  Januarj'  last.  According  to  the  company's 
articles,  after  those  payments  were  made,  the  deferred  and  pre- 
ferred stockholders  shared  equallv  in  anv  further  distribution, 
and,  therefore,  the  directors  concluded  that  it  would  be  equit- 
able and  acceptable  to  the  proprietors  to  give  to  the  two  classes 
an  equal  amount  in  2  per  cent,  of  deferred  stock  as  a  bonus 
instead  of  paying  any  further  cash.  The  balance-sheet  showed 
the  position  of  the  company  generally  to  be  thoroughly  sound, 
for  at  December  ^i  last  thev  riosse-ssed  in  cash  and  liauid  assets 
,/'i,7oo,ooo,  against  the  liability  for  the  ;^62q,ooo  of  two-y6ar 
notes.  The  company's  relations  with  the  Republics  of  Chile 
nnd  Bolivia  were  excellent  in  every  respect.  The  results  of 
the  working  for  IQ18  were  satisfactory.  The  traffics  to  date 
s^howed  an  increase  of  ;fi72,8i;s.  He  concluded  by  moving  the 
•doDtion  of  the  report  and  accounts  and  the  payment  of  the 
final   dividend  recommended  on  the  deferred  ordinary  stock. 

Sir  Robert   Harvey  seconded   the   motion,   which   was   carried 
imanimouslv. 


CEYLON    (PARA)    RUBBER    CO.,    LTD. 

The  ii;th  ordinary  general  meeting  of  the  Ceylon  (Para) 
Rubber  Co.,  Ltd.,  was  held  on  Friday  at  the  Council  Room 
of  the  Rubber  Growers'  Association,  38,  Eastcheap,  London, 
E.C.     Mr.  R.  B.  Magor  (chairman  of  the  company)  presided. 

The  Chairman,  in  moving  the  adoption  of  the  report,  said  : 
It  is  satisfactory  to  find  that  the  estates  continue  to  give  an 
increasing  yield,  the  total  quantity  manufactured  being 
ig6,ooo  lbs.  over  that  of  the  previous  year,  equal  to  an  increase 
of  22  per  cent.  With  the  exception  of  a  small  shipment  of 
10,000  lbs.  rubber  (which  is  held  up  on  the  way  home  owing 
to  enemy  action),  the  whole  of  the  crop  has  been  brought  to 
market,  notwithstanding  the  shortage  of  freight  available  for 
transport  to  this  and  other  markets,  and  the  average  realised, 
including  208,423  lbs.  sold  in  Colombo,  is  equivalent  to  2S.  554d. 
per  lb.,  or  ^^id.  per  lb.  less  than  the  igi6  average.  At  this 
lower  average  price  the  proceeds  of  the  larger  crop  only  exceed 
those  of  the  previous  year  by  £(i.-;2e,.  On  the  other  side  ex- 
penditure continues  on  an  increasing  scale,  accounted  for  to 
a  great  extent,  of  course,  by  freight  and  other  charges  on  the 
larger  crop  and  by  adverse  exchange,  but  also  to  the  higher 
rates  prevailing  in  all  directions.  The  Ceylon  expenditure 
includes  the  upkeep  of  about  c;oo  acres  of  young  rubber  and 
various  non-recurring  items  that  I  need  not  explain  in  detail. 
Suffice  it  to  say  tha?  the  estates  are  now  well  found  in 
machinery  and  building,=;,  as  in  all  other  respects.  The  ,sea-son 
was  generally  favourable  for  production,  tnd  the  yields  from 
the  various  seasons'  plantings.  1905-11,  have  been  progressive, 
the  average  returns  per  acre  from  the  united  tapping  area 
of  2,743  acres  being  388  lbs.,  against  316  lbs.  in  1916.  The 
maximum    yield   was  obtained   from    the    1905    rubber,    which 


yielded  461  lbs.  per  acre,  indicating  that  when  all  areas  are 
in  full  bearing  we  may  expect  at  least  a  similar  average  return. 
The  cultivation  of  the  estates  has  been  fully  maintained,  and 
the  reports  of  Mr.  Williamson,  the  visiting  agent,  on  both 
properties  are  entirely  satisfactory,  all  works  being  well  up  to 
date  and  the  supply  of  labour  ample  for  all  requirements.  Pests 
and  diseases  have  not  been  so  active  as  in  past  years,  due  in 
some  measure  to  more  favourable  climatic  conditions  and  also 
to  constant  attention  and  treatment.  The  plantings  during 
recent  years  are  in  every  way  satisfactory,  and  the  general 
growth  of  the  young  rubber  indicates  that  these  areas  will  in 
time  equal  the  earlier  plantings.  Fifty-eight  acres  were  opened 
during  the  season.  To  return  to  the  accounts  before  you.  The 
nett  result  is  a  profit  of  ^^47,221,  or  67 J4  per  cent,  on  the 
capital.  Excess  profits  duty  probably  absorbs  ;f23,5oo,  or  33K 
per  cent.  Transferred  to  reserve  ^'3,000,  or  4%  per  cent.  In- 
crease to  amount  carried  forward  last  year  ;^3,22i,  or  45^  pei 
cent.  Proposed  final  dividend  of  I2j^  per  cent.,  making  a  total 
of  25  per  cent.,  ^^17,500,  or  25  per  cent.  It  may  not  be  out 
of  place  here  to  draw  your  attention  to  the  total  amount  of 
excess  profits  duty  for  the  past  three  years,  viz.,  ^^66,162,  equal 
to  94  per  cent,  on  the  capital  of  the  company.  This  is  an 
exceptionally  heavy  impost  levied  on  the  basis  of  yield  from 
about  one-third  only  of  the  present  area.  If  the  shareholders 
at  this  meeting  decide  to  adopt  the  recommendation  of  the 
directors  to  declare  a  dividend  of  1254  per  cent,  the  financial 
Ix>sition  of  the  company,  as  compared  with  last  year,  will  be 
improved  to  the  extent  of  /'6,3ii.  The  balance-sheet  now  shows 
an  unexpended  balance  of  ^fS.ooo.  This  places  the  company 
in  a  fairly  strong  position  to  meet  possible  difficulties  that  may 
arise  in  disposing  of  this  year's  crop.  The  crop  to  May  31 
is  approximately  290,000  lbs.,  of  which  168,686  lbs.  have  been 
sold  in  Colombo  at  Rs.  1.19  per  lb.,  and  41,860  lbs.  shipped 
to  this  market,  or  a  total  of  210,546  lbs.  disposed  of.  The 
price  realised  at  present  rate  of  exchange,  freight,  &c.,  is 
equivalent  to  2s.  id.  per  lb.  on  this  market.  The  situation  so 
far,  therefore,  gives  no  cause  for  undue  anxiety,  although  I  do 
not  underrate  the  possibility  of  critical  times  for  the  industry 
within  the  year,  .^t  the  same  time,  I  do  not  take  quite  such  an 
alarmist  view  as  that  expressed  in  some  quarters.  I  admit  that 
circumstances  are  exceptionally  complicated  as  they  are  by  the 
tonnage  question,  and  I  am  afraid  the  difficillties  in  the  way 
of  moving  the  current  season's  crop  may  be  greater  than  any 
we  have  yet  experienced.  The  action  of  the  Uiiited  States 
Government  in  temporarily  restricting  imports  of  rubber  for  the 
three  moriths  May-July  adds  a  further  complication  to  the 
situation  that  we  are  called  on  to  face,  and  is  doubtless  one 
of  the  immediate  consequneces  of  the  shortage  of  freight  space 
all  over  the  world. 

Mr.   W.    Forsythe   .seconded   the   motion,   which   was    carried 
unanimously. 


LANADRON    RUBB'^R    ESTATPS- 

The  tenth  ordinary  general  meeting  of  the  Lanadron  Rubber 
Estates,  Ltd.,  was  held  on  Thursday  in  the  Council  Room  of 
the  Rubber  Growers'  Association  (Incorporated),  38,  Eastcheap, 
E.C,  Mr.  Frank  Wilson  Barker  (chairman  of  the  company) 
presiding. 

Mr.  J.  Mclnnes,  on  behalf  of  the  secretaries  (Messrs.  Harri- 
sons and  Crosfield,  Ltd.),  having  read  the  notice  convening 
the  meeting  and  the  report  of  the   auditors. 

The  Chairman,   in  moving    the  adoption   of   the  report  and 
accounts,  said  the  total  acreage  planted  with  rubber  at  the  end 
of    the   year    was    5,205   acres.       Of   this   the   average    area    in 
bearing  was  4,596   acres,  as  against  4,255  acres  in    1916.     The 
average   number  of   trees   in    tapping   was    425,659,    as   against 
403,272.     The  average  yield  per  tree  was  3.29  lbs.,  as  against 
3.18  lbs.,  and  the  average  yield  per  acre  was  306  lbs.,  as  com- 
pared with  301  lbs.  last  year.     The  labour  force  increased  from 
1,879  to  2,216,  and  the   satisfactory  point   here  is  that  Tamils 
have  been  coming  in  more  freely  of  late,  enabling  us  to  reduce 
our   requirements  of   the   more  expensive   Chinese.      Pests   and  ■ 
diseases,   though,    of  course,   always  requiring  close  attention, 
have   been  kept   well    in   check.      The  rubber  crop  for  the  year 
amounted   to   1,401,373  lbs.,   an   increase  on   last  year's  output 
of  119,215  lbs.,  but  short  of  the  estimate  for  the  year  by  208,627 
lbs.     The  failure  to  reach  the  estimate  may  be  put  down  largely 
to    unusually    wet    weather,    and   also   to   heavier   thinning   out 
than   had  been  contemplated  as  possible  when  the  estimate  was 
made.      I  need  hardly  say  that  the   quicker  thinning   out  can 
be  accomplished  the  better  for  the  future  of  the  estate,   though 
the   effect  for   a  time   is,  of  course,   to    reduce   output.      The 
average  price  obtained  for  our  product  of  2s.  4.o2d.    per   lb., 
Ix)ndon    equivalent,    may    be   considered    satisfactory,    but    the 
;ost  of  production  f.o.b.  at   is.  3.96d.  cannot  be  so  considered. 
It  has  been  enhanced  by  extra  work  on  thinning  out,  cultiva- 
tion, etc.,  but  after  making  allowance   for   such   items  it  is  too 
ftigh,  and  strong  representations  have  been  made  on  the   sub- 
ject to  our  managers  and  our  agents  in  the  East.     The  differ- 
ence  between  f.o.b.  and    "  all   in "  cost   has,   you   will  notice, 
increased  from  2.64d.  to  4.57d.   per  lb.,  but  that  is  an  increase 
over  which  we  have  no  control.     The  cost  of  administration  is 
considerably  reduced,   but   the  cost   for  war  risk  insurance  has 
increased  from  .484.  to  2.i2d.  per  lb.     This  year  we  have  had 
to  charge  against  revenue  the  sum  of  /'4,5oo,  equal  to  Jd.  per 
lb.,  to  balance  our  income-tax  account,  caused  by  the  fact  that, 
with    reduced    dividends,    the    amount    recovered    from   share- 
holders on  the  dividends  paid  is  not  sufficient  by  that  amount 
to  meet  the  tax  at  which  we  have  been  assessed,  which  is,  as 


646 


^be  Jnveetote'  IReview. 


Jl-'XE  29,    1918. 


J°"  ^"^">  based  on  ^  three  years'  average.  In  considering 
costs  I  would  request  you  to  bear  in  mind  that  we  liave  charged 
upkeep,  replacements-in  fact,  all  estate  expenditure,  except 
new  machinery  or  new  buildings-to  revenue.  The  nett  result, 
after  allowing  for  tax  reserve  and  writing  off  rather  more 
generously  for  depreciation   than    we   have  hitherto  done,  is  a 

i.»^,  ,  ^/^'^'.?  "•  'i^-'  "'  "'*'"  °^"  '3i  per  cent,  on  our 
capital,  and  under  ordinary  conditions,   with  no  excess  profits 

ini^l  ^Jl"^^^'^  ^f"'  ""^  '"■e*''  ''^^e  been  ju.stified  in  pay- 
3  Ti  "^'  dividend,  but  the  conditions  are  not  ordinary, 
and  with  the  immediate  future  so  uncertain  I  am  sure  vou  will 
agree  with  us  that,  di.sappointing  as  it  is  to  get  no  final  divi- 
dend    It  would   be  unwi.se  to  part  with  funds  at  this  juncture. 

J=,Lirr'*^^''"^  u"^  "^'^  '"^^^'  P°^'''""  «o  far  as  it  can  be 
estimated  at  pre.sent  have  been  quoted  so  often  at  meetings  that 
have  preceded  this  one  that  I  need  nof  give  them.  Whatever 
may  be  done,  I  am  afraid  we  rubber  shareholders  are  ron- 
wlT=i'"  f  «"  *T  ^°'  '^^  P'"^"'-  All  things  considered, 
Zlr  IL  '"^  f  ''""'y  ■""^'^  ^"""S  *^^  ^''^  «hree  years  of 
f^r  ;  wvi"""      endeavour  not   to  grumble   if  we  have  to  suffer 

vinced  that    when   peace  is  reached  and  ample  tonnage  is  once 

^eZ^rinr^^"'  "'^^'^'  'T'  '"'°  ""'  "*"  ^'8^'°'  -"d  that  the 
demand  for  our  product  which  will  then  arise  will  banish  the 
bogey  of  over-production  for  many  vears  to  come, 
unanimorsljf  '  ''°"  '"^"'"^"^  '^'^  re.^olution,  which  was  carried 


T.  ^^^    MANILA   RAILWAY  CO.   (1906) 

eleTentlf  nrT"        "'""^   f"^  '"""^  2^"^^'^'    "meetings    and    the 

rn^i'  t     \  T'r-   \"^  ""  ^"<^*y   ^t   Winchester  House!  Old 

comSny!"p^esfdi'ng.-'^^-  ^  "  ^^  ''''''  ^<^°"'  ^'^^  ^^^^--^  °^  "^« 

thJ^^'^J'^^^X  !!!''•  ■'•  ^'^'^I'enzie)  having  read  the  notice  of 
the  meeting  and  the  report  of  the  auditors  for  each  year 

Jtie  (.hairraan,   in   moving  the    adoption  of    the    report  and 

uTwhi.fh  H^"*-'^"  f  "^  ■"  P«^e"»ing  those  for  Z\  and 
U)  6,  which  had  arisen  from  no  fault  of  the  London  office    had 

t?  n![er°o"?'  r*'*"  ■"'',!'"'  ^V'^^  "°"'<^  ^"  -alise  that  the 
I'hmrfnfn  r  °^"^"h'P  °f  their  property  in  Manila  to  the 
the  m.»r  /^'°;'^^"'»^«  %d  given  rise  to  many  problems  and 
fnnn".  !,  '^  ""^l  ^""''"  complicated  because  they  had  not 
found  a  desire  on  the  part  of  the  Philippine  Government  to  ex 

wi?h  th'T^'I'"/"'  T^^\-^  '''°"S  desiri^to  delay  the  bus  ness, 
7hit?  ^'h  '  ""'  he  believed,  of  seeing  whether  bv  delaying 
things  something  might  not  turn  up  which  would 'enable  thi 
hev' h"^":!. '°  "ake  further  claims  on  the  company.  As  it  was! 
they  had  raised  claims  with  respect  to  contractors'  taxes  and 
income-tax,  both  of  which  would  be  burdens  if  at  aH  on  the 
American   company     and  those  matters  were   still  out.standing! 

fhev  hIh  h^H  ,  °^''''-^'u'°  P^y  '^^''  f""  debenture  interest 
they  had  had  to  reduce  their  carry  forward  from  ^94,400  to 
.<:,^7,ooo.  In  u,i6.  the  year  ,n  which  the  agreement  for  the  sale 
was  completed,  it  had  only  been  necessary  to  draw  ^g.ooo  from 
the  carry  forward  to  pay  their  debenture  interest  in  full.  The 
?v-..  ^"^"^  ^1,450,000   appearing  in    the  accounts  for    1016 

Hn'!i,  ?  ^PPat-ent  than  real,  because  it  consisted  almost  ex- 
ciusively  of  paper  arrears  of  interest   which   had  been  funded 

ncthin"^  '^Tw"".  i'"''^  ^°'  ""^'"^^  '^^  company  had  received 
ncthing.     That   deficiency  would   have  to  be  dealt    with   at  a 

fnrZ?-^t"'  "^T'  ^'  ^'  ^°P"<^  "'at  the  board  would  be  able  to 
formulate  a  plan  to  reduce  the  capital  in  some  way  so  that  they 
wifh  th?'."'%*°  '^^''o'ders  of  the  capital  an  improving  income 
with  the  eventual  return  of  at  lea.st  los.  in  the  /i  on  the  whole 
amount  of  the  preferential  capital.  The  accounts  fo?  ,97 
showed  that  the  interest  received  from  America  was  /2,i  827, 
t"ff  ti.l'  P^r?^  ""  debenture  interest  and  expenses  they  were 
IIL7  I  ^^^^""^  °^  ^7,350-  The  revenue  of  1017  was  in- 
teresting, because  it  enabled  them  to  form  some  idea  as  to  what 
revenue  the  company  could  expect  in  the  future.  Taking  ex- 
change at  4.86  they  might  expect  from  the  American  company 
/r2o6,2oo,  while  the  trustees  of  the  "A"  and  "B"  debentures 
Had  in  cash  .^130,000  for  redeeming  "B"  bonds,  which,  it 
reaeemed  at  50  per  rent.,  would  represent  a  saving  in  interest 
of  Afg.ioo  a  year.  The  company  had  in  hand  ^30,000,  which 
would  enable  them  to  redeem  "  B"  debentures,  representing  a 
further  saving  of  4-2,800  a  year,  giving  them  a  total  income  of 
/  218,100,  from  which  would  have  to  be  deducted  their  expenses 
or  £3,500  a  year.  The  interest  on  the  bonds  would  absorb 
/,  200,000  a  year,  leaving  a  surplus  for  the  shareholders  which 
would  represent  about  J  per  cent,  on  the  preference  capital, 
the  position  of  the  company  would,  however,  improve  very 
materially  in  time,  because  in  1930  the  4  per  cent,  debentures 
on  the  Southern  line  and  their  own  i;  per  cent,  debentures 
would  mature,  realising  ;42so,ooo.  In  that  year  also  a 
further  amount  of  4  per  cent.  Southern  bonds,  at  present 
held  by  the  trustees  of  the  "A"  and  "B"  deben- 
tures, would  be  paid  off.  and  would  produce  rather  over 
/  500,000,  so  that  after  1939  they  might  look  forward  to  an 
income  of  anything  between  /33.000  and  /36.000,  while  in 
"' J  '*u  ^-"  ^^^  remaining  securities  of  the  American  company 
and  the  English  company  matured,  it  was  the  calculation  of  the 
hoard  that  there  would  be  a  surplus  for  the  .shareholders  of 
/.  1,050,000,  or  10s.  in  the  £  on  the  preference  stock.  Roughly, 
It  looked  a-s  if  after  this  year  there  would  be  a  dividend  on  the 
preference  stock  of  some  los.  or  15s.  per  cent.,  gradually  in- 
creasing to  30s..  and  possibly  to  £2,  with  the  ultimate  return 
of  capital  to  which  he  h.ad  alluded. 

Sir    John    F.    F.    Horner.    K.C.V.O.,    seconded    the   motion, 
■which  was  carried  unanimously. 


LEDBURY    RUBBER    ESTATES. 

The  ninth  o.'dinary  g<  neral  meeting  of  Ledbury  Jtubber 
Lstates,  Ltd.,  was  held  on  Friday  at  the  registered  office  of 
the  company,  1.4,  Great  Tower  Street,  K.C..  Mr.  Frank  Wilson 
Darker,  chairman  of  the  company,  presiding. 

Mr.  J.  Mclnnes,  on  behalf  of  Messrs.  Harrisons  and  Cros- 
field,  Ltd.,  the  secretaries,  having  read  the  notice  convening 
the  meeting  and  the  report  of  the  auditors, 

1  he  Chairman  said  :  —A  further  1 10  acres  were  felled  at  Kin- 
rara  Kstate,  of  which  55  acres  were  planted  Before  the  end  of 
the  year,  and  the  balance  will  be  finished  this  year.  It  io  not 
contemplated  to  undertake  further  extensions  until  the  general 
position  is  clearer.  As  you  will  see  from  the  acreage  statement 
appended  to  the  report,  we  now  have  2,221  acres  planted  with 
rubber.  Of  this  the  average  area  in  bearing  was  1,877  acres, 
as  against  1,572  acres  in  1916.  The  aver-ige  number  of  trees 
in  upping  was  162,285,  as  against  146,621.  The  average  yield 
per  tree  was  4.26  lbs.,  as  against  4.39  lbs.,  and  the  average  yield 
per  c-icre  was  368  lbs.,  as  compared  with  401,  lbs.  last  year. 
The  decrease  in  the  yields  per  tree  and  per  acre  have  been 
caused  by  the  bringing  in  of  new  trees  and  the  thinning  out  in 
the  older  areas.  Thinning  out  has  been  steadily  proceeded 
with  duriug  the  year,  ;ind  though  the  first  effect  is  to  reduce 
output,  there  is  no  doubt  that  the  ultimate  effect  is  to  increase 
the  yield  of  the  trees  left  standing.  The  labour  position  was 
fairly  s.itisfactory,  and  on  Sione  eminently  so.  Ledbury  could 
have  done  with  a  few  more  Tamils,  and  Kinrara  had  to  con- 
tinue the  partial  nse  of  Chinese  tappers  whom  we  should  like 
to  do  without.  Pe.sts  and  diseases  have  given  no  trouble  at 
T-edbury  and  Sionc,  but  .(t  Kinrara  there  have  been  a  good 
many  cases  of  Brown  Bast  disease,  which,  needless  to  say,  are 
receiving  careful  attention.  The  rubber  crop  for  the  year 
amounted  to  691,496  lbs.,  an  increase  on  last  year's  output  of 
48,605  lbs.,  but  short  of  the  original  estimate  for  the  year  by 
73,504  lbs.  The  average  price  obtained  for  our  rubber  was 
2s.  3.32d.  per  lb.,  iis  against  2s.  7.85d.  in  the  previous  year. 
Cost  of  production  has  adv.inced  from  gisd.  to  ii.2od.  per  lb., 
due  to  the  expenditure  incurr^td  on  the  extension  at  Kinrara 
which  we  have  charger!  to  revenue,  and  to  small  advances  under 
nearly  every  heading  in  the  accounts,  caused,  by  the  advance 
in  the  cost  of  materials.  Admini.^tr.ntion  expenses  <nre  con- 
siderably re.-luced.  but  .advances  in  marine  insurance,  war  risk 
insurance,  and  other  items  over  which  we  have  no  control 
cause  the  "all  in"  cost  to  be  is.  3. god.,  as  compared  with 
ii.74d.  for  the  previous  v^ear.  The  nett  result  after  writing 
off  rather  more  fully  for  "depreciation  th.nn  we  have  hitherto 
done,  is  a  profit  of  ^34.761  i8s.  ed..  or.  say.  32  per  cent,  on 
o'lr  capital.  At  first  sight  it  Would  look  as  if  we  might  have 
given  you  a  more  generous  final  dividend,  but  I  think  yi/j  all 
recognise  that  the  times  ahead  of  us  ar"  so  uncertain  that  it 
behoves  us  to  keep  a  fair  amount  of  cash  in  hand  with  which 
to  meet  the  financial  strain  which  may  come  upon  us. 

As  you  are  prob.nbly  aware,  the  Kubber  Growers'  Association 
hive  approached  the  Government  with  a  view  to  their  enabling 
the  plantation  indu.stry  to  overcome  some  of  the  difficulties 
A<'hich  have  arisen  as  the  outcome  of  the  situation  created  by 
♦he  Ameri.';an  restrictions,  and  I  hope  that  J^ome  action  mav 
bo  taken  on  the  lines  of  the  suggestions  put  forward.  It  is  im- 
possible to  foresee  what  may  happen  in  the  immediate  future, 
but  I  feel  justified  in  expressing  the  opinion  that  when  we 
return  to  normal  conditions  the  rubber  pl.intation  industry  has 
a  groat  future  before  it. 

Mr.  George  Croll  seconded  the  motion,  which  was  unani- 
mously adopted. 

GREAT    BOULDER    PROPRIETARY    GOLD 
MINES. 

The  annual  general  meeting  of  the  Great  Boulder  Proprietary 
Gold  Mines,  Ltd.,  was  held  on  Tuesday  at  Cannon  .Street  Hotel, 
Sir  George  P.  Doolette,  J. P.  (the  chairman),  presiding. 

The  Chairman,  in  moving  the  adoption  of  the  report  and 
accounts,  congratulated  the  .shareholdei«  upon  the  success  of 
the  past  year's  work.  It  was  true  that  in  some  respects  the 
figures  were  not  up  to  the  returns  of  previous  years,  but,  all 
things  considered,  they  were  eminently  satisfactory,  showing, 
as  they  did,  a  recovered  nett  value  of  ;^"253.o26.  The  profits, 
after  deduction  of  Australian  taxes,  were  ^229,850,  against 
;f249,i3o  for  1916.  As  the  -Australian  taxes  had  increased  bv 
^^9,332,  the  decrease  in  iiclual  mining  profit  was  not  a  veiy 
large  one,  and  was  principally  accounted  for  by  the  rise  in 
mine  expenditure  of  ;^i5,646.  but  against  this  could  be  se^  off 
the  increased  net  gold  receipts  of  /t),i36.  T-hc  manager  was 
able  to  put  through  the  mill  a  larger  tonnage  lh;,n  last  year — 
a  fact  which,  in  face  of  the  want  of  labour  over  the  whole  field 
and  its  inferior  quality,  as  well  as  the  mine  stoppages  they  had 
Ijern  subjected  to.  was.  he  considered,  a  very  satisfactory 
result.  Like  the  demands  of  labour,  there  seemed  to  be  no 
finality  of  taxation  in  Australia.  It  was  conceded  that  gold 
production  was  of  tho  greatest  importa'ice  to  the  Kinpire,  gold 
being  the  .standard  of  ail  values,  .nnd  he  subaiilted  that  it  was 
the  duty  of  all  GovernmentR  in  countries  where  gold  was  pro- 
duced to  protect  the  industry  from  undue  demands  which  tended 
to  reduce  the  output.  Tho  ore  reserves  amounted  to  387,511 
tons,  having  a  money  value  of  ;£i.i75,ooo,  against  439.677  tons, 
of  a  value  of  ;f  1,370,000,  in  the  previous  year.  The  decrease  in 
tonnage  of  reserves  was  53,166  tons,  but  as  182.26;  tons  were 
put  through  the  mill,  it  showed  that  tho  management  last  year 
developed  fresh  reserves  to  the  extent  of  130,100  tons.  If  they 
could    continue  at    this    late   it    would   mean  ibat  the   reserve 


JlNE   29,    I918. 


Zbe  Jnvestore'  IReview. 


647 


would  last  at  leaht  another  .seven  years  at  the  present  rate  o£ 
output.  In  dealing  with  the  financial  pnsitioii  of  the  company, 
he  congr.itulated  the  shareholders  upon  receiving  their  tooth 
dividend,  amounting  in  all  to  ;f 5,400, 550 — the  tol.il  output  of 
gold  beinjj  ;i"ii, 377,950.  or  more  than  one-third  of  the  whole  out- 
put in  Western  Au.str:ilia  since  1894.  In  paying  their  looth 
dividend,  they  had  had  to  strain  the  fiiiances  of  the  compan\- 
somewiiat,  as  during  the  past  year  the  claims  upon  them  in 
respect  of  Imperial  and  Federal  taxes  h;:d  been  very  excessive, 
and  had  exhausted  their  treasury  to  an  undue  extent.  After 
mature  consideration,  the  directors  had  decided  to  pass  the 
September  dividend,  and  pay  the  next  dividend  at  the  end  of 
the  year,  and  then  he  sincerely  hoped  that,  despite  the  claims 
which  would  be  marie  upon  them  in  the  coming  year  for 
Imperial  and  Federal  taxes,  the  returns  for  the  year  would 
justify    their   continuing    the   dividends    at   the    present    rate. 

Mr.    John   Waddington,   J. P.,   .seconded   the  resolutiim,   which 
was  carried  unanimouslj'. 


What    Balance   Sheets  Tell. 


Dk.mi'kara  RAiLW.w  Co. — In  the  December  half-year  gross 
receipts  Were  ;^2,ooo  higher  at  £3S'^S°'  but  expenses  advanced 
.^7,500  to  ;^30,25o.  However,  with  a  larger  amount  brought 
in,  and  by  withdrawing  ^"3,300  against  /Ig^o  from  the  renewal 
fund,  the  nett  revenue  balance  is  only  ;f  1,800  less  at  ;f  16,000. 
The  ordinary  stock  gets  a  dividend  of  .1  per  cent,  (against  nil), 
making  3  per  cent,  for  the  year,  and  by  placing  only  ;<^  1,500  to 
reserves  against  ^3.600,  the  carry  forv.-ard  is  reduced  2.i>30o 
to  ^'2,000.  It  seems  doubtful  whether  the  directors  were  justi- 
fied in  paying  a  dividend,  but  the  conditions  were  un- 
favourable owing  to  bad  weather  and  the  increased  cost  of 
labour  and  materials,  so  it  is  presumably  expected  that  things 
will  be   better  in   the   current  year. 

Agricultural  Baxk  of  Kgvpt.— Receipts  in  the  year  to 
J,-muary  31  amounted  to  ^1,255,000,  an  increase  of  ;if5o,ooo, 
but  ;f  144,000  less  at  ^^20,000  had  to  be  written  off  for  deprecia- 
tion of  investments,  and  other  debix  items  also  were  smaller, 
v/ith  the  result  that  the  balance  at  profit  and  loss  is  ;£220,ooo 
larger  at  ;^583,ooo.  Cash  has  fallen  ^/40,ooo  to  ^785,000,  ad- 
vances ;£320,ooo  to  ;£447,ooo,  loans  ;^38o,ooo  to  ^4,460,000,  and 
•nstalmonts  overdue  ^^'485, 000  to  ;i^5Q5.ooo,  but  investments  have 
increased  ^1,900,000  to  ^^5, 214,000,  and  the  total  of  the  balance- 
sheet  is  ju.st  about  the  same  at  ;f  12,800,000.  The  bank  serves 
an  extremely  useful  purpose,  and  it  is  pleasant  to  see  that  it 
makes  splendid  progress.  . 

Nation.^l  Bank  of  Aistralasia,  Ltd. — In  the  half-year  to 
March  31  Government  depo.sits  increased  ;i^i4o,ooo  to  ;f  1,807,000, 
and  other  deposits  j^i.230,000  to  ;^i2,oi5,ooo.  C'ash  and  invest- 
ments are  up  a  million  at  ^7.086,000,  and  another  million  has 
been  added  to  bills  discounted  and  advances,  raising  the 
amount  to  ^^lo, 134,000,  and  the  total  of  the  balance-sheet  to 
^17,610,000.  Gross  profits  were  practically  unchanged  at 
jf2o7,ooo,  and  the  nett  profit,  including  a  larger  balance  brought 
in,  is  ,;£2,6oo  up  at  ^100,740.  After  again  placing  ^^30,000  to 
reserves,  and  repeating  the  dividend  of  7  per  cent,  per  annum, 
the  balance  forward  is  increased   by  ;f2,5oo  to  ^18.300. 

Ciiy  OF  London  Re.vl  Propkrtv  Co..  Ltd. — Although  many 
branches  of  City  business  have  suffered  severely  owing  to  the 
war,  this  company  continues  to  do  well,  and  in  the  year  to 
-April  12  the  nett  revenue,  including  the  amount  brought  for- 
ward, was  jf  io,ooo  higher  at  ;if  185,000,  .After  placing  ^40,000. 
or  /'lOjOoo  more,  to  reserve,  the  dividend  of  13  per  cent,  is  re- 
peated, and  the  balance  forward  is  practically  the  same  at 
^■4i.33"-  Several  additional  premi.ses  have  been  purchased, 
while  the  freehold  of  29,  Gracechurch  Street,  has  been  sold,  and 
the  company  has  exercised  its  option  to  take  up  ^75,000  new 
capital  of  the  London  Offices  Co.,  Ltd.  Assets  are  now  valued 
^'   £3>^55'"'>o<  an   increase   of   nearly   ;,fioo,ooo. 

INVESTMKNT  TRUST  CORPORATION,  I.TD.'—Inrome  fell  off 
/■i2,ooo  to  ;£2o5,46o  in  the  year  to  .April  30,  but  there  was  a 
saving  on  income-tax,  and,  with  a  larger  amount  brought  in, 
the  nett  profit  is  only  ;^i,ooo  sm.iller  at  ^159,240.  It  is  there- 
fore quite  easy  to  repeat  the  dividend  of  12^  per  cent,  on  the 
deferred  .stock,  and  as  last  year  ^6,000  was  transferred  to  in- 
come-tax adjustment  account,  the  carry  forward  is  increased  by 
^5,000  to  ;f4S,8oo.  Investments  at  ^^4. 700, 000  show  a  slight 
decrease,  but  the  changes  in  the  balance-sheet  do  not  call 
for  remark. 

A-MERicAN  Freeh oi.D-L.^Ni)  Mortcagk  Co.,  of  London,  Ltd. 
—In  the  year  to  March  31  the  total  income  was  ;f92,36o,  a 
decrease  of  ;^6,7oo,  but  this  may  be  regarded  as  very  .satisfac- 
toiy  in  view  of  the  higher  income-tax  deducted  and  the  restric- 
tions imposed  by  the  Treasury-  on  the  company's  business.  Nett 
piofit,  including  the  amount  brought  in,  was  practically  un- 
changed at  .^45.470,  and  the  dividend  of  10  per  cent,  and  bonus 
of  5  per  cent,  are  repeated,  while  .^S-xi  more  at  ;f5,ooo  is  placed 
to  reserve,  and  the  carry  forward  is  slightly  reduced  at  .^4,550. 
During  the  year,  debentures  and  mortgages  for  .,^100,000  were 
redeemed,    against    _^39.r<x)   in   the   previous,  twelve  months. 

Park  Gate  Iron  and  Steel  Co..  Ltd.— Although  the  profits 
for  the  year  to  March  31  are  returned  at  /'ioo,8oo,  or  ;^3,ooo 
less  than  in  the  previous  12  months,  they  must  actually  have 
been  considerably  higher  as  war  taxation  would  absorb  more, 
and  ^40,000  against  ^^30,000  is  written  off  for  depreciation.  A 
year  ago  there  was  a  bonus  distribution  of  one  share  in  four  out 
of  reserves,,  and  the  dividend  is  maintained  at  15  per  cent.,  but 
it    absorbs   /75,ooo  against    ;f 60,000.     The    amount   placed   to 


reserve  is  reduced  from  ^40.000  to  ^25,000,  and  as  a  larger 
sum  v.as  brought  in  the  carry  forward  is  a  little  larger  at 
.^io,2ix).  During  the  year  ;£So,7oo,  or  ;^42,ooo  more,  was  ex- 
pended on  properties  and  plant ;  otherwise  nothing  in  Uio 
balance-sheet  calls  for  notice. 

Meters,  Ltd.,  Manchester.— In  the  yeai  to  March  31  gross 
profits  amounted  to  .^32,930,  an  increase  of  ;^3,ooo,  and  after 
paying  all  expenses,  and  charging  ^5,100  against  .^3,650  for 
repairs  and  renewals  the  nett  profit  is  ^4,400  higher  at  ^31,300. 
The  final  dividend  is  therefore  raised  from  5  per  cent,  to  6 
per  cent.,  making  S  per  cent,  for  the  year,  against  7  per  cent. 
The  appropriation  to  reserve  is  doubled  at  ;f4,ooo,  and  the 
balance  forward  is  increased  by  ;^i,2oo  to  .,^5,200.  With  the 
present  addition  the  reserve  will  amount  to  ;£ii2,ooo,  and 
although  the  investments  (.|/,"i25,ooo  in  gilt-edged  securities) 
show  a  depreciation  of  ;<'i 7,000,  the  position  is  quite  comfort- 
able. 

K.  and  J.  Hill,  Ltd.— In  the  year  to  March  31  th«  nett 
profit  amounted  to  ;f46,ooo,  an  increase  of  ;f  18,500.  A  year 
ago  a  dividend  of  5  per  cent,  was  paid  (the  first  since  1906), 
and  b  per  cent,  is  now  declared,  while  reserve  gets  double  at 
;{,io,ooo,  and  ;fi2,ooo  more  .at  £2(>,-j(:o  is  carried  forward,  sub- 
ject to  excess  duty,  which  amounted  to  ^'7,300  for  1916.  Govern- 
nuiit  restrictions  on  clearances  of  tobacco  from  bond  for  home 
consumption  have  been  in  operation  during  the  year,  and  have 
resulted  in  the  output  being- insufficient  to  meet  the  demand. 
Unfortunate  consumers  have  to  suffer,  but  the  manufacturers 
have  little  to  complain  about. 

John  Shields  .and  Co.,  Ltd. — Profits  for  the  year  to 
February  28  are  struck  before  instead  of  after  providing  for 
excess  dut}',  and  they  show  a  reduction  of  ;^2,ocx5  at  ^18,920, 
but  this  is  more  than  offset  by  the  larger  amount  brought  in. 
Last  year  ;^2,ooo  was  placed  to  special  reserve,  and  three  years* 
arrears  on  tiie  "A"  shares  were  paid  off.  Consequently  the^ 
amount  available  for  the  "  B  "  shares  is  now  ^16,400,  against 
;^'io,oco.  and  the  dividend  is  raised  from  2  per  cent,  to  10 
per  cent.,  while  the  carry  forward  is  ;J8oo  up  at  ^^9,400.  It 
will  be  seen  that  the  fortunes  of  the  company  have  improved 
greatly  in  the  past  two  years. 

Henry  Cl.w  and  Bock  and  Co.,  Ltd. — The  year  1916,  it  may- 
be recalled,  was  an  exceptionally  prosperous  one,  and  the 
directors  were  able  to  pay  off  seven  years  of  preference  divi- 
dend amounting  to  ;^g5,ooo.  For  1917  the  nett  profits  were 
;^26,ooo  smaller  at  ;if44,6oo,  and  with  ^^24,000  less  brought  in 
the  amount  available  is  down  ^^50,000  at  ;f68,coo.  After  paying 
the  preference  dividend  for  the  year  the  carry  forward  is 
increased  by  ;^3i,ooo  to  ^,^54,900,  and  once  more  there  is 
nothing  for  the  ^{^'160,000  of  ordinary  capital.  Much  better 
things  were  expected  when  the  company  passed  under  American 
control. 

Nesti.f,  Avn  Anglo-Swiss  Condenseo  Milk  Co. — As  might 
have  been  ex^'ected,  last  year  proved  a  very  prosperous'  one  for 
this  company,  anH  the  nett  profit  amounted  to  20,187,000  frs., 
an  increase  of  2,600,000  frs.  So  the  directors  can  afford  to  be 
generous  to  the  shareholders,  and,  in  addition  to  the  statutory 
dividend  of  20  frs.,  or  5  per  cent.,  they  pay  a  supplementary 
dividend  of  80  frs.,  as  against  75  frs.  Owing  to  the  new  shares 
being  now  fully  paid,  these  dividends  absorb  15,000,000  frs., 
or  3,125,000  frs.  more.  The  special  reserve  gets  300.000  frs. 
less  at  2,000,000  frs.,  and  last  year's  jubilee  appropriation  of 
500,000  frs.  for  widows  and  orphans  has  net  to  be  repeated,  so 
that  the  carry  forward  is  only  slightly  reduced  at  10,000  frs. 
The  company  has  an  immense  business,  as  may  be  gathered 
from  the  fact  that  the  balance-sheet  now  totals  at  246,480,000  frs., 
an  increase  of  48,000.000  frs.  Reserves  amount  to  31,000,000  frs.. 
in  addition  to  a  sinking  fund  of  6,500,000  frs.  for  the  amortisa- 
tion of  debentures. 


BOOKS    RECEIVED. 


Tje  Incor-porated  Accountants'  Students'  Society,  Victoria. 
Money  and  its  Purchasing  Power.  By  Mr.  J.  R.  Butchart. 
March.   1918. 

The  directors  of  the  London  and  Lancashire  Life  and 
General  Assurance  Association,  Ltd.,  desire  it  to  be  known  that 
there  is  no  truth  in  the  rumour  that  they  contemplate  amal- 
gamation with  any  other  company. 

It  has  been  stated,  says  the  Vossische  Zeitung,  by  the 
Bessarabian  Minister  in  the  Rumanian  Cabinet,  M.  Inculetz, 
that,  in  consequence  of  the  lon^  drought,  the  harvest  in 
Be.=sarabia  will  be  extremely   bad. 

The  Baltimore  and  Ohia  Railroad  is  selling  110,500,000  of 
short  term  notes  at  about  par,  to  meet  obligations  maturing- 
July  I.  The  company  is  authorised  also  to  issue  $20,000,000  of 
5  per  cent  bonds,  which  will  be  sold  at  not  less  than  80,  to  pay 
for   improvements. 

A  land  .igent  writes  to  the  Times  to  show  how  the  profit  of 
an  estate  has  been  made  to  disappear  by  taxation.  In  the  first 
exhibit  for  1913  there  is  a  profit  of  /84  i6s.  6d.  ;  in  the  second, 
which  is  for  1018,  there  is  a  less  of  2s.  6d.  ;  and  for  1919  an 
estimated  loss  of  ^17  12s.  6d.,  or  is.  4d.  per  acre.  Throughout 
the  rent  paid  is  ;^2oo,  or  15s.  per  acre.  That  ifnt  alone  appears 
to  point  to  imperfect  cultivation,  and  the  land  agent's  figures 
therefore  prove  n9thing  as  to  the  canacitv  of  ifiS  land  to  pro- 
vide for  ail  the  nation's  essential  food  wants. 


b48 


Zbc  Jnvestors'  IRevtew. 


June  29,  19 18. 


INDIAN  RAILWAYS. 


Namc. 


MONTHLY    STATBUBNTS. 


a«ow  TKAmc  rot  week. 


Wsek 
mdlDC 


I  Beoical 

Bu>l 

Bwiittl&N.-W.     .. 

BeonI  Nagpur 

Bombay,  Batoda  .. 

Burma 

Delhi  Umballa      .. 

Bast  Indian.. 

Gt.  Indian  Penln.  .. 

Luoknow-Bareilly. . 

Madras      and       S. 

Mahratta  . . 
Nizam'BGd.(Broadl 
,,        „     (Motre) 
Rohllkund  aid 

Kumaon  .. 
Soolb  Indian 


May 

„ 

iZy 

lune 

Apl. 

June 

,, 

„ 

Apl. 

27 

May 
Apf. 

II 

20 

" 

20 

«7 

May 

II 

Amonnt 

tCi.  '" 

1,40,081 

32,100 

4,89,660 

11,95,000 

16,99,000 

3.69.489 

74,600 
37,26,000 
22,83,800 

63,943 

11,25,000 

1,68,269 

86,991 

501309 
6,63,647  — 


lln.  or  dM. 

on  lail 
I      veir. 


O«0M  TUmC  TO  DATE 


Amooal 


Id.  or  dac 
oolut 


Ra. 

-      3.734 

—      3,6oo 

+   44,293 

+    66,000 

—    57,000 

4-      30.410 

-    17,587 

+  3.43.000 

}—    87,900 

+       9.135 

—     49.817 

+     34.833 

-       3.449 

—       5,i6S 

—     31.740 

1 

6,36,855- 
^,000  — 

+ 
+ 
+ 
+ 

4- 
+ 
4- 


■  8,88,450 

66,77,000 

1,91,66,000 

30,07,010 

9.33,085 

3,80,51,000 

3,51,84,400 

3,711605 

65,10,000 
4,33.653 
3.49,5«6 


Ra. 

7.545 

26,800 

1,39,810 

3.9",372 

11,71,000 

68,967 

69.969 

i9,S4iO0o 

13.75,997 

74,398 

1,37,301 
37,514 
7,566 


f  April  I.  t  October  i. 

TRAMWAY  AND  OMNIBUS.— HOME. 


3,11,045  4-        18,973 
39,09,820 —    1,26,159 


Dublin  United 
HaatlsKsand  DIat.. 
Isle  ol  Tbanet 
Lancishlre  United.. 
Provincial    . . 
Yorka.  (Wst.  RdnR.1 


£ 

99,454 
33,207 

6.525 
68,800 
88,402 
48,863 


£ 

19.435 

3.''54 
2.161 
18,500 
16,462 
■■,358 


•  From  Oct. 

I. 

+  From  Ian.  i. 

TRAMWAY  AND  OMNIBUS—FOBblON   AND  COLONIAL. 

Alabama  Power    . . 

Apr.  1 

138,191 

4- 

£ 
31.375 

Ms. 

(. 
265,020 

£ 

4-        31.718 

AnKlo-Araentlne    . . 

Auckland  Electric. . 

June  24 

50,966 

— 

1.330 

',380,958 

*        93..538 

Apr.  12 

33.209 

4- 

2.031 

224,466 

*          9,880 

.Btdzilian  Traction  . 

..'      • 

M4,09i,ooo 

+ 

M3e,ooo 

M15277000 

—  M8i4,ooo 

Brisbane  Elec.  Inv. 

May 

37.610 

+ 

4.270 

175.179 

4-        14,059 

British  Columbia  .. 

Sf/y' 

•  129.997 

+ 

•32,909 

10 

•1,162,554 

4-   •193.153 

B.A.  Lacroze 

4i.3>5 

+ 

720 

11 

429,380 

4-          3.322 

Burmah  Eleotrio  .. 

l> 

Rs. 27.614 

4- 

Rs.3,9,5 

— 

313,042 

4-    RS.4.94S 

'Carthagena  and 

June  8 

Rs.72,232 

+ 

R8.7,734 

Rsi5i4,256 

4-RslI5,039 

Herrerias.. 

May     4 

5.027 

+ 

706 

22,585 

4-          3.738 

Coriioba  LIchi 

P.  &T 

Feb. 

13.972 

+ 

1.076 

II 

147.938 

+             435 

Hongkong   .. 
■La  Plata 

Apr.  27 

•  ■3.039 

+ 

938 

•229,677 

4-       •5.295 

May     b 

5.105 

+ 

978 

23,077 

4-          3.786 

Lima 

Apl. 

30,292 

+ 

1.605 

82,153 

4-        14.5M 

Madras  Electric    .. 

June  15c 

Rs  39,261 

4-R8.  7.I19 

K».443,I40 

4-Rs.67,2l6 

■Manila  Electric 

Mar. 

69.103 

+ 

39,996 

196,324 

4-        64,027 

Mexico 

Nov.   i 

•  215,256 

— 

•  108,609 

♦  3.193.106 

—  •197,227 

Rangoon 

vlay   J 

5.719 

+ 

982 

28,582 

■I-          3.345 

Singapore  Electric 

„      4 

•  13.742 

+ 

•l,3t9 

•242,897 

+        •5.786 

Toronto 

Apl.     1 

•500.728 

+ 

•20.-85 

•  '.943.562 

f      •76.096 

United  of  Monte  V. 

May 

32.301 

+ 

3,585 

238.338 

4-        23,000 

Mar.    S 

47,700 

— 

4,400 

131,900 

—       33,700 

Winnipeg    .. 

Apr.    § 

•65.739  |— 

•5.676 

•282,393 

—     ^39.493 

638  days.       •  From  Jan.  i       |  Neti.       a  From  luiy  i.      c  Two  weeks. 
FOREIGN   RAILWAYS. 


£ 

£ 

£ 

c 

AlcoyandGandla.. 
Antotagasta    (Chill) 

June  22 

Ps.  7,90 . 

— 

4,60a 

Ps.  231,000 

-  Ps.40,870 

„•■     '3 

56,895 

4- 

15,495 

1. 144.435 

4- 

188,350 

Arauco 

May 

13.000 

4- 

2,000 

65,000 

4- 

10,000 

Art^entine  N.E. 

June  22 

9.100 

.-. 

1,200 

446,700 

4- 

70,798 

Bilbao  R,  and  Canta 

May 

4.149 

4- 

133 

32,151 

4- 

3,052 

Bolivar 

12,000 

— 

670 

135.894 

♦ 

14,079 

Braill 

Apl.      • 

M5.325,ojo 

4-111559764 

M 19811, 000 

+ 1 14059550 

■Brazil  Gi.  Southern 

Deo.     ♦ 

vl-^. 66,912 

f 

M  22,712 

^538,439 

4- 

M  74.769 

B.  Ayres  &   Pacific 

June  22 

165,000 

4- 

9  ,000 

5,o6i,ojo 

4- 

717,000 

Do.  Central     .. 

Apl. 

36,403 

4- 

10,302 

289.099 

4- 

46,182 

Do.  Gt.  Soutb'n 

June  2} 

127,000 

4- 

29,CXX) 

5,678,705 

— 

31,451 

Do.       Western 

„       23 

72,000 

+■ 

30,000 

2,800,000 

4- 

329,000 

Central  Argentine.. 

„          32 

140,000 

4- 

54,000 

6,020,200 

4- 

867,100 

C.Ur'g'ayofMisV. 
Do.  East'n  Ex. 

„          32 

30,539 

4- 

7.13 

951,534 

4- 

276,917 

..         32 

5."44 

— 

2,3'9 

264,9  i 

4- 

8990 

Do.Niirth'nEx. 

..          32 

S.950 

(• 

1.727 

175.015 

4- 

46,387 

Do.  West'n  Ex. 

„          33 

2,440 

4- 

313 

112,749 

4- 

20,246 

Cordoba  Central  . . 

,,         22 

45,000 

t 

11,815 

1,656,000 

4- 

124360 

Costa  Rica  . 

Apl.      20 

3.399 

2.585 

121,652 

101,276 

Cuban  Central 

June  22 

19.087 

4- 

4.877 

I,o8o,4J4 

4 

181,213 

Dorada  Extension.. 

May      • 

9.500 

100 

42,900 

2,800 

Egyptian  Delta 

June  10 

7.830 

4- 

3.452 

54.897 

4- 

15,652 

Entre  Rios  .. 

21 

18,900 

K 

4,eoo 

833.900 

4- 

206,900 

French  Same  F6  . . 

Mar. 

155.760 

4- 

45, i29 

4- 

Gi.  Soutii.  of  Spain 

June    8 

f».    24.077 

-Ps6l,40i 

Ps.  678,873 

-I'SI513275 

Gl.West.  ofBrazil.. 

..         33 

13.700 

4- 

2, 10  J 

422,200 

4- 

109,850 

Havana  Central     . . 

,,         I 

10,436 

4- 

3,323 

435.  J3) 

4- 

94,181 

Inter.  oiC.  Amer... 

May   C 

39,384 

— 

335 

141.164 

_ 

22,775 

La  Guaira  and  Car. 

„ 

3.500 

— 

3,130 

29,750 

_ 

13,000 

iLeopoldina 

June  23 
May 

31.943 

— 

1.363 

797.592 

4- 

"97,792 

Midland  Uruguay .. 

11,701 

— 

I.C55 

144.76  1 

4- 

1,7^9 

Mogyana 

N.W.  of  Uruguay.. 

Mar. 

Ml,7i7,ooo 

4-  ai97350 

M  7,294,000 

4'Mi2I4086 

May 

»  20, 500 

•6.255 

•282,453 

4- 

•  12.004 

Nitrate 

June  15 

35,103 

+ 

6,164 

347.983 

4- 

31.097 

Paraguay  Central  . . 

„          32 

3.380 

4- 

80 

150,020 

4- 

15.010 

Paullsta 

Apl.      • 

M3,107,000 

+ 

Vl255,58o 

M9,839,ooo 

4  M2249I04 

Peruvian  Corpn     . . 

May      • 

Sl,022,I20 

4- 

Si  19,340 

S  11424,560 

4- 

81201888 

Salvador 

June   15 

3,000 

4- 

980 

108,684 



909 

jState  of  Bahia  S.W 

Apl. 

M40.OOO 

— 

M2,ooo 

M277.000 



M3S,ooo 

S.  Paulo  iBraiilian: 

June  23 

34,633 

4- 

1,041 

733,638 

4- 

•75,122 

Sorocabana.. 

Apl.     • 
Vlay   •• 

M3, 169.000 

4- 

Il7l8,l2j 

vl7,7»4,ooo 

4- Ml  422563 

Taltal 

23,168 

— 

39 

273.»8 

4- 

61,067 

United  ol  Havana.. 

June  32 

40,238 

4- 

"3.740 

3.973  462 

4- 

737.508 

West'n  ol  Havana. . 

,.       32 

7.624 

.— 

13 

473. '40 

4- 

118,951 

.2afraand  Huelva.. 

J««_'_ 

I3.9'3 

4- 

3,369 

64.563 

4- 

■1.323 

•  Months,      t 

Jan.  I     IF 

rom  July  i 

c 

Natt.    i 

I. 

days,    a  i< 

)d. 

lys. 

COLONIAL  RAILWAYS. 


<B*lra.. 

Caaadlan  Northern 
vCanadlao  Pacifio 

Gi.Trk.  Main  Line 
iGr.Trk.  Western.. 
:r>«troit  G.  H.  ft  M 
GrTkPac  Prairie  Sc 

MaihonalanJ 

Mid.  of  Wesu.  Aut. 

New  Cape  Central. 

Rhodesia 


Feb.  *c 
June  21 


.    21 

.     31 

Jan.  • 
Apr.  * 
May  4 
Mar.'c 


23,620 

916,300 

:. 849, 000 

370,461 

49,013 

13,213 

18.551 

52,822 

8,5Jt 

3.4I3 

71.909 


38,673 

•4.900 

•90,000 

t 

33,4  8 

7.384 

•,589 

8.196 

3,300 

650 

10 

770 

■".VtS 

I 

350,319 

141,036,000 

•67,754.«» 

4.967.363 

937,334 

290,829 

557,  lol 

336,599 

79.259 

42.67S 

570.464 


I 

—  25,44^ 
4-^ll03,ooo 
4-  •923,000 
4-  315.401 
4-        37,334 

—  32,360 
4-  74.953 
4-  3.232 
+  1.651 
4-           7,784 

—  16.  to8 


•  Months. 


I  July  I. 


I  Jan.  I. 


€  from  Got.  i. 


KKTT  BAMrmOE  VOB  MOan.      IIETT  EAEHiaai  TO  DATE 


Mootfa, 


Aleblsoo  T.  &  S.  Pi 
Atlantle  Coast  Line 
Balllmore  ft  Ohio  . . 
CtDsdUn  Northern 
CuMdlan  Pacific  . . 
ChmapniM  ft  Ohio 
CbiMfo&N.W.  .. 
CUo«(o  Burl,  ft  Q. 
CbleigoG.W. 
CUetgo  Mil,  ft  S.P. 
Cbloago,  Rook  I.&P. 
Colorado  ftSouthern 

Coba 

Delaware  ft  Hud.  .. 
Denver  &  Rio  Gran. 

Brie 

Gr.Tr.  Main  Line.. 
Grand  Trunk  Wesln 
DeiroitG.ll.ftMII.. 
Gt.  Northern 
Illinois  Central 
Kansas  City  Southn. 
Lehigh  Valley 
Louisville  ft  Nashvl. 
Minn.  S.P.  (SooJI .. 
Miss.  K.  ft  Texas  . 
Missouri  Pacific    .. 
NewYockCent.&H. 
N.Y.  N.  Haven  &M. 
NewYorkOni.&  W. 
Norfolk  &  Western. 
Northern  Facitio    ., 
Pennsylvania    East 

and  west  Lines. 
Phil,  and  Reading . 

Reading 

bt.  Louis  ft  San  F. . 
Seaboard  Air  Line. 
Souttiern 

Southern  Pacitio   . 
Union  Pacific 
Wabash 


Apr. 
Jan. 
Apr. 
May 
Apr. 

Jan. 
Dec. 
Feb; 
Apr. 

Dec 
Mar. 
Jan. 
Apr. 
Mar. 
Apr. 


Jan. 
Mar. 
Dec. 
.Mar. 
Nov. 
Mar. 
Dec, 
Apr. 


Dec. 
Apr. 
.Mar. 
Apr. 
.Vlar. 


Amonnf. 


Dois: 

4.701,000 

1,073,000 

1,796,000 

380,900 

3.453.000 

1,681,000 

6  789,000 

1,585,000 

151,000 

723.000 

1,602,000 

488.046 
3.600 

695,000 

188.000 

144,600 
b  C38,350 
b  £9,600 
1 , 1 65,000 
1,860.000 

487,000 
6989,000 
2.393.000 
6126,000 

776,000 
1,690,000 
3.985.000 

207,000 
21,000 

542,000 

861,000 

4,718,000 
344,867 
118,918 

1,229,000 
729,000 

3,171,000 

3,302,000 

2,621,000 

852.000 


In.  or  Dee, 
on  last  year 

Dols.^" 
— i,6oo,aoo 

—  212,000 

—  671,000 

—  673,300 

—  730,000 
4-  337.C00 
—4,797.000 
—2,376,000 

—  36,000 
1,317,000 

164.000 

—  11,000 
I-  510,194 

—  720,000 

—  92,000 

—  761,000 

—  (51,550 

—  £17,350 
4-  £100 
—1,401,000 
4-  463,000 
4-  96,000 
—1,346,000 
+  554.000 

—  a«3,ooo 
-i  212,000 
4-  321,000 
+  343,000 
— i,799,«)o 

—  60,000 
833,000 
694.000 

— ft 3071000 

—  113,050 

4-   59,693 

—  344,000 

—  10,000 

4-1,136,000 

—  749.000 
4-  834,000 

—  i93/»o 


tea 


Amount. 


Dolt. 
14,333,000 

12ioi4,O0O 

b     403^000 

J.4I3.300 

8,307,000 

4,074,000 

37,015,000 

!  32,867,000 

'       143,000 

2,144.000 

4,716,000 

5,320,000 

'      3,9)0,288 

5,686,000 

2,354,000 

i  2,977,000 

*  £363.750 

b  £138,250 

b  £'i&fia) 

23,987,00a 

4,976,000 

1,679.000 

9,403,000 

4,962,000 

9.331.000 

1,261,000 

9.425,000 

8,483,000 

23,813.000 

14,000 

I       769,00s 

:    1,644,000 

b  5,34i,(X)o 

6  3.482,330 

486,165 

9.576a»o 

2,432,000 

6,134.000 

10,430,000 

3,711.000 

475.000 


In.  ot  Dee. 
on  laat  year 


Doll. 

—  1,696,00a 
4-      607,000 

—  3.904,500 

—  4,333,000 

—  1,069,000 
— 1,634,000 

—  6,333,000 

—  357,000 

—  4,807,000 

—  1,108,000 
4-  370,000 
4-  1,3*7,990 

—  2,124,000 

—  473,000 

—  £846,600 

—  £"1.750 

—  £11.800 

—  6,179,00c 
|—  1,331,000 
j-  159.000 
I—  2,876,000 

—  784,000 
3,648,000 

—  151,000 
4-  1,920,002 

—  976,000 

—  2,245,000 

—  185,000 

—  2,300,000 

—  2.139,000 

— 423987000 

—  4,448,350 
4-  150,870 
4-     633.000 

—  865,000 
4-      703.000 

—  3.137,000 
4-  1,370,000 

—  1,971,000 


i  Includes  Wisconsin  Central.    *  Gross  eaminiES.    t  Surplus.    6  Deficit. 


The  Union  Pacific  has  sold  to  Messrs.  Kuhn,  Loeb  and  Co. 
$20,000,000  of  6  per  cent,  ten-year  bonds,  which  it  is  understood 
will  be  offered  to  the  public  at  98. 

A  letter  received  from  the  Volga  Insurance  Co.,  Petrograd, 
states  that  rumours  concerning  the  nationalisation  of  insurance 
companies  have  spread  abroad,  and  caused  a  certain  feeling  of 
alarm  in  the  circles  concerned.  These  rumours  have,  for- 
tunately, not  been  justified.  Instead  of  nationalisation,  a  con- 
trol over  all  kinds  of  insurance  has  been  instituted,  which  is 
to  be  carried  out  by  the  "  Council  (Soviet)  for  Insurance 
Affairs."  This  Council  has  already  sent  out  a  circular  pro- 
hibiting the  requisition  of  property  owned  by  the  branch  offices 
of  the  various  insurance  companies,  the  imposition  of  exorbitant 
taxation,  &c.,  &c.  So  there  seems  to  be  some  hope  of  conditions 
improving. 

Mr.  !•".  W.  Ashe,  manager  of  the  Union  Bank  of  Canada,  and 
a  member  of  the  bank's  London  advisory  board  for  the  past 
seven  years,  has  been  appointed  assistant  general  manager  of 
the  bank,  with  headquarters  at  Toronto.  Mr.  Ashe  will  be  in 
control  of  the  bank's  affairs  in  the  provinces  of  Ontario,  Quebec, 
Xova  Scotia,  and  New  Brunswick.  Mr.  John  Wilson,  who  is 
now  assistant  manager  of  the  London  office,  and  Mr.  J.  G. 
Geddes,  manager  at  Vancouver,  have  been  appointed  managers 
of  the  London  branch.  Mr.  Geddes  will  be  attached  to  the  New 
York  branch  of  the  bank  for  three  months  before  assuming  with 
Mr.  Wilson  the  management  of  the  London  office.  It  is  Mr. 
.\she's  intention  to  remain  in  London  for  some  months  before 
taking  up  his  new  duties  in  Canada. 


A  GREAT  NATIONAL 

DISTRIBUTION 

THE 

PRUDENTIAL 

Paid  to  its   Policyholders  in   1917  over 
£9,700,000 

or  over  £31,000  for  each  Working  Day. 

THE     WESTERN     AUSTRALIAN     BANK. 

Established  1841. 
Pald-ar  G<i»ltiU     ..    <ll«,Oee   0    e     is.aoo  shares  of  £ioaaak. 
Kaaana  Fund  . .     . .  £700,000    0    0  I  ReierTa  Prelu    . .  «IMlt 

Baaarrad  LiabllllT  of  Sbarekoldars  <liO.(00. 

Daafts  Issued    Kftntttanc^s  cabled.  BilU  npKolislsd    or  collected,     DeposUs 

reeelved  tor    filpil   {wrruds  af  rates  to   DC  ascertslaed   o«   appUeatioa.  and  all 

bankinff  and  exckanne  basincss  eonnectro  with  Wtfiera  Australia  eaaJactad 

throaxh  the  London  acmIs  TkaBaak  a(lda)aMa.U,  L««4aBlMUIh.B.0.>, 


rrinlad  by  the  St.  CLiHKNTa  Pataa,  Ltd.,  Poctuaa'  S(na(. 

hj  TnE.PaoraiBTOc,  Noifelk  Haasa, 


I.  Narilelk 


Joa,  W.C,  for  tha  Proptlalorof  Tm  InraatMs'  Bbtww,  and  PabUahad 
Sttoal,  Smnd,  W.C,  3.— laM  29,  ■(•«.  (M  arjr 


HG 
11 

16 

V.51 


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