Financial Notes MARKETS Q UIETLY FIRM. WITH the approach of the
Christmas holidays there has been the usual slackening of business in the Stock Markets, and at the moment of writing it looks as if business might remain quiet until just before the end of the year, when there is often a tendency on the part of the public to purchase on expecta- tions of increased business in the new year. Looking a little further ahead, I think that, barring untoward political developments, the month of January will be--a fairly active one, both in the Stock Markets and in the matter of new capital creations. I should expect many, if not most, of these issues to be of an industrial character, both by reason of the recent trade activity and also because the public is undoubtedly in the mood to seek for higher yields than are obtainable in absolutely gilt-edged securities. •
* * * * A RECENT OFFER.
As an example,- however, of the demand which exists for really sound investment stocks giving a yield of over 8 per cent, there may be cited the recent success of the offer of 19,300,000 in Railway Freight Rebates Loan made by Mills and Co-. and Baring Bros.- -Applications are believed to have been not far from £70,000,000; the security for the 'loan, giving an average yield including redemption .of about £3 3s. per cent. is quite exceptionally good. - * *
CARRERAS.
The latest Annual Report of Carreras:Limited, made up to October 31st last, showed a further expansion in profits and at the annual general meeting last week the Chairman, (Continued on page 148.1 Financial Notes , tbontintied frem. page 1 I 36.1 Mr. H. W. Danbury, drew attention to the size of the total undivided profits and said that the Board felt the lb-Tie had arrived for taking a -further .-step- for -adjusting the "ijapitid so as to make it more commensurate with the Profits' 'earned. Accordingly it is proposed to capitalise 1708,626 of undivided profits and a bonus distribution is proposed of" B" Ordinary shares in the proportion of 16 " B " shares for every five Ordinary or "A" Ordinary shares and two "B '! Ordinary shares for every five " B " Ordinary shares held. The Chairman stated that during the past year the company had obtained control of an established manufacturing business in Quebec with a good organisation for marketing their products throughout Canada.
AGAR, CROSS AND CO.
So much has been written about the improvement in Argentina and the higher prices for her products that one is apt, perhaps, to forget the period of depression from which that country is now recovering. A reminder of the fact, however, was given at the recent meeting of Agar,- Cross and Company when the Managing Director, Mr. Henry S. -F. Alexander, who presided in the absence, in Argentina, of the Chairman, explained that the Company's business had been adversely affected by the fact that a year ago the Argentine was suffering from the effects of one of the worst and most widespread droughts experienced for very many years, the wheat and linseed crops having been most adversely affected. Mr. Alexander once again emphasised the fact that the Company could not hope to make profits unless the pastoral industrialists of the Argentine were in a position to do so also, and the ruling prices for cereals and most of the other produce of the country were now such as ought to give the producer a satisfactory return. Moreover, although the Company again suffered a loss for the past year, it was much smaller than for the previous year, and with regard to the future Mr. Alexander was able to speak hopefully, stating that the Directors expected a still greater improvement in
trading results in the current year. A. W. K.
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