FINANCIAL NOTES.
It is rather difficult to determine whether there has or has not been a throw-back in the stirrings of trade activity noticeable at the beginning of the year. The dockers' strike undoubtedly gave a knock to trade, and the unsettled state of Labour generally continues to be a deterrent influence, so that, latterly, there has been a rather generally accepted view that trade was slackening again. Certainly so far as ease in the Money Market is concerned, this view would seem to obtain justification ; but, on the other hand, the latest banking figures are more encouraging. The Clearing Bankers figures for April show that deposits have risen for the month by about £11,000,000, while there was an increase of T5,000,000 in advances. Moreover, it is rather striking to note that, as compared with a year ago, the total advances of the Clearing Banks show an increase of something like £45,000,000. That in its turn is largely due to a big shrinkage in discounts owing to the repay- ment of Treasury Bills. Even making allowance for that fact, however, it is probable that advances by the banks for trade purposes are larger than a year ago.
* * * * Having regard to all the circumstances of the case, it is generally considered in the City that the results of the Government's recent Conversion operation were entirely satisfactory. It will be recalled that the Govern- ment's offer was to convert up to a limit of £200,000,000 existing 5 per cent. War Loan into a 41 per cent. Conver- sion 16-20 year Loan. The terms of the Conversion were that holders of the 5 per cent. War Loan might apply at the rate of receiving £103 in the new Loan for each £100 of 5 per cent. War Loan converted. The total amount converted seems to have been just over £150,000,000, and on Monday last dealings in the new stock commenced, the price opening at about 971, and closing at 971, that quotation giving a yield of about £4 lls. 6d. per cent. The stock is dealt in ex-dividend, and the present yield on the new Loan is practically identical with-that obtainable (Conn/two on page 812.) on the 84 per cent. Conversion Loan, only, of course, that the latter stock cannot be redeemed ti11,1961. The two loans offer to trustees a very useful choice of invest- ments according to the length of maturity desired. , * - Industrial as well as. Government and Corporation issues seem likely to increase in the near future, and among other such flotations is an issue by the Blue Bird Motor Company (1924), Limited, of 160j000.8 per cent. Cumulative Participating Preference shares of £1 each and 64,000 Ordinary shares of ls. each, the price of issue being par, while subscribers of the. Preference shares are entitled to subscribe for two Ordinary shares in respect of each five Preference shares applied for. The issue, of course, falls into the speculative class, and the pros- pectus is based upon an estimate of future rather than of past profits. On that basis, however, the margin over and above the amount required to pay the Preference dividend is a large one, and there are no Debentures, Mortgages or charges of any kind. It is stated that the purchase price includes nothing for goodwill, and that no intermediate profit is being made.
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