TRADERS' FINANCE CORPORATION.

Auckland Star, Volume LV, Issue 170, 19 July 1924, Page 11

TRADERS' FINANCE CORPORATION.

(Published by Arrangement.)

WHAT "CAMBIST" SAYS. t _____ "a AN EXPERT'S OPINION. * ~~—- i (Reprinted from Truth, July 19). t . c In this writers opinion, capitalism c provides more opportunities for the j human race than the mass of the people c are aware of, and in the case of the pros- i pectus of the Traders' Finance Corpor- 1 ation, Ltd., we get f An Object Lesson. , of what its possibilities are capable of. - It points the road to a series of im- ( mensc potentialities which have a direct i j bearing upon the well-being and hap- , piness of numerous industrial enter- , prises. At the same time it gives a. 1 fresh and potent note to a new song of hope for many persons who are galled by the pressure of monopolistic combin- t ation. In case this may be considered i as too ethical, too academic, "Cambist" 1 will set out to prove that the issue of . £300,000 of fl shares in the Traders' J Finance Corporation, Ltd., is an oppor- i tunity which should be availed of by j 1 every person who has money to invest. i and who, above all things, desires that < investment to be both profitable and safe. i Profit and lofty considerations have a ' i wonderful habit of combining themselves i in a most happy and pleasurable manner. , ] Tliis company with its modest capi-M talisation of £300.000 is but a first step I , towards greater efforts in the speedy 1 . liquidation of present credit difficulties I i which confront every person engaged in I i business which requires a sound method |' ' for the carry-over from one process to f another in the course of production, 1 stocking, distribution and finally realts- : , ation. Jt will lend its moneys to every i class of individuals covered by this short i j business epigram. In its functioninir it I will make first of all a three-fold security I for itself and its shareholders, and so , will secure a higher class of security | than if the pledge depended solely upon I one asset hypothecated. So long as this throe-fold class of security is depended, upon, "no possible shadow of doubt" I attaches to the sound realisation of Success and Safety. This is, in fact, the nut kernel of cooperative business. By following that method, there can be no such thing as a "dead security," for there is first a living healthy birth in the transaction and in the natural development which follpws, periodical repayments, set out to suit the conditions of each case, extinguish the three-fold liability upon which the Corporation relies. By insisting upon the periodic repayments at short intervals, the gross debt to the Corporation dwindles rapidly and the security, instead of wasting, becomes bettered as each repayment is credited to the beneficial advance. All such advances are highly beneficial. They amplify the stimulating powers of capital, operating in and through the business community. This Corporation can be as selective in its clientele as any bank and it has less cause to fear business blunders than is the case in banking. The bond upon which the Corporation depends, being a three-fold security, is | | therefore better than the usual obligation implied in a first-class banking security. In banking the security at its best depends upon two elements, namely, the client and his security. In this case, there is the client and his security, plus the third party, who may be a purchaser, consumer, or employer, as the case may bo. There is not room here to extend in detail the Full Significance of the "third," but it will suffice to remark that a "three-fold cord is not easily broken," nor is there any sound reason why any attempt should be made to try and do so. Triune securities aro the safest in the world of business, but in that wonderful orbit the one who advances the money must be "number one all the time. It is only thus that the full significance of safety can be understood and that the real power "to do good and not evil" can operate continually. "Number one"' is the splendid despot who can enforce the obligations attaching to the three-fold combine which provides the soundest credit security possible. We all need a Splendid Despot to guide our actions and so "keep us up to the mark" in whatever undertaking we may be engaged in. Hence the need for directors, governors, committees and such like in business, etc.. etc. Of the 100,000 £1 shares now offered to the public for subscription, a large proportion has been already dealt with. £5000 worth fully paid have been set aside for the promoters, as they are bearing the cost of thiß flotation. These worthy and far-seeing gentlemen have the utmost confidence in the Corpora- ] tiori and they arc to purchase another I £5000 worth of the ordinaries, paying ' cash down for the latter, and the syndi- | cate are, in addition to the foregoing, 1 applying for a further "25,000 ordinary contributing shares" ... on the sarao terms as those being offered to the public. In other words, the promoters are interested to the extent of £35,000 in the issue of £80,000 ordinaries, which only leaves £45,000 for subscription by the public, as set out in the prospectus. If ever there was an example of Complete Confidence on the part of promoters in the fortunes of a flotation here is one without doubt. The public are not over-burdened by dead capital but are, on the other hand, heartened by the well-founded optimism of the founders and strengthened by the fact that those who have conceived the practical ideas upon which the Traders' Finance Corporation, Ltd., will carry out its business are game enough to put good hard money into the venture ijght from the start of affairs. The terms on which tho Corporation offers membership are 2/6 per share on application, the same amount upon allotment, and the balance in calls not exceeding 2/6 per share at intervals of three months. Then there are preference shares to the extent of 20,000, which carry preferential and capital rights. The former amounts to a cumulative seven per cent dividend and priority up to the amount of capital invested to the full amount of the Bhares should ever the Corporation have to go into liquidation. The last mentioned class of shares will appeal to those investors who desire a steady dividend at a fair rate of interest, apart from other opporI tunities which belong to ordinary investments. The company should pay a large ordinary dividend and as there are ITo Restrictions to the possible earnings of the Corporation and a quick return from its operations as soon as it gets into business, I this offering to the public is most at- ' tractive. Every member on the board is highly qualified for the fiduciary posi1' tion of a seat by reason of long and successful business careers and, mort ua*

portant stilt, their high, standing in commercial affairs which spread throughout the The company has a big •business awaiting it in the Auckland province and it trill soon have to spread into other provinces. This practically assures success from the initiation of practical trading and it also suggests that the time for extension of the capital account will soon draw near. It seems 1 1 to "Cambist -, that the whole £300,000 , should have been let loose at once, but in spite of that fact he feels sure that . the nature of the business and the high- | class of its undertakings will give it enormous credit facilities, apart from its own capital account. The next issue . of shares should command a stiff pre- j mium. leading to heavy reserve funds for I the Corporation, to which must be added an annual reservation from earned pro- • fits. Big profits assure big reserves. | Big reserves assure the capital funds in-; vested. Big reserves breed large dividends when used in the business. But investors should get into this quickly; these will get a first "refusal of the later capital issues." Tn other words they will obtain a business Profit in Advance and reap, the golden corn which always follows a wise sowing. Now is the time to sow. Soon will it be time to reap. A safe liquid business turns in more £ c. d. in one year than a stodgy investment in a Government bond that sticks like a bone in the throat of a person who is afraid to enter the vast fields of I capitalistic profit and enterprise. EcI member that 33,000 ordinary shares are I already accounted for, and that when 50,000 shares are applied for by the , public the Corporation goes to registra- j tion. . This Corporation will be a help to the banks. Its operations are not confined !to the motor trade, but can be extended Ito every class of trade or enterprise I which needs credit for the promotion of sound developments. It has a safe and profitable field to work on and the sooner I it gets into its job the better it will be for the prosperity of this splendid Dominion. Copies of the prospectus may be obtained from and application for shares made to the temporary offices of the Corporation, Messrs. Bruce and Duthic, = National Mutual Buildings. Shortland ■ Street; to any branch of the National , Bank of New Zealand, the bankers of the , Corporation: to ita Organising Broker, | Mr. W. M. B. Mowbray, of 22, Short-! land Street: or to any member of the J Auckland Stock Exchange, j ===== I