FINANCIAL NOTES.
In view of the ease in money and the keen response which has been given to all new issues of capital, it is almost surprising that there have not been more capital flotations during the past week or two. I imagine, however, that by or before the time this letter appears in print the much-discussed issue of 11,000,000 in 6 per cent. Debentures by Dickins and Jones will have been made, and that within a few days we shall have the flotation of something like 3i millions in connexion with the formation of Johnnie Walker" into a public limited company with a capital of £4,760,000 divided into £1,260,000 Ordinary shares, £1,500,000 in 7 per cent. Preference shares, and £2,000,000 in 6 per cent. Deben- tures. It is not expected in the market that any of the Ordinary shares will be offered to the public. These are pretty large flotations to be made during the month when available resources are supposed to be small by reason of the tax collections, but there is little doubt as to a favourable response being given, and with the turn of the month, when easy conditions in April and May seem probable, it would not be surprising to see some large flotations, including those of a gilt-edged and those of a foreign character.
In every respect the annual report of the Prudential Assurance Company, which was issued last week, is a remarkable document. The company seems to rise superior to such influences as trade depression, and not only did the amount of the new policies completed in the " Ordinary " branch reach a total of £14,862,000 with new business in the Industrial branch of £51,400,000, but as regards the latter department the outstanding feature was a considerable reduction in the cost of running the business. Only two years ago the company was able to announce that the expense ratio had been reduced to 36.9 per cent., and now there is a further reduction to 32.1 per cent. Moreover, in spite of the large turnover of business, there was a reduction under the heading of Commission, the amount compared to the past year being £8,366,000 against 13,655,000.
At the annual meeting the Chairman, in dealing with the Industrial Branch and the profit-sharing system, outlined a system of reversionary bonus additions to policies in the Industrial Branch which it has been decided to adopt in view of the reduction in the expenses ratio, which the Directors believe will be maintained. To all policies issued since the beginning of the year the reversionary bonus will be allotted, with the proviso that the bonus will not vest until the policy has been fifteen years in force. It is intended, however, to supple- ment this scheme by an interim dividend in respect of policies which become claims when premiums have been paid for more than five and less than fifteen years.
• Whatever sentiment there may be attaching to the familiar title of the London County Westminster and Parr's Bank, Limited, we fancy that the many thousands who conduct business with that institution will heave sa sigh of relief in being able now to communicate simply with the "Westminster Bank, Limited." For, as might have been expected, there was no opposition whatever to the proposed change of title, and the new name certainly has all the d' of the old, while.not a few are appreciating its shortnjs. In conformity with the action of the parent institution, the London County Westminster and Parr'S (Foreign) Bank, Limited, is also to change its name to Westminster (Foreign) -Bank, Limited. - * * Just because I desire above everything that we may be able mie day to re:simile oin- functions 'm maintaining a free gold market, I am inclined to deprecate the excessive zeal displayed in that directicin by some of the members of the Sound Currency Association. That Association held its meeting in the City on Tuesday, when Sir George• Nish and some other members seemed to indicate that the moment had actually arrived or was at hand for our return to a free gold market. I commend to these honest zealots a perusal of a speech -recently delivered by the Chairman of Barclays Bank in which, while he strenuously urged that "a return to a free gold market should be consistently before us as one of our objectives," he also suggests "there was a danger in resuming those functions too quickly." I notice, by the by, that at the meeting of the Sound Cbrrency Association few, if any, of the leading bankers were present. A. W. K.
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