FEWER FAILURES.

Auckland Star, Volume LXXII, Issue 87, 14 April 1941, Page 4

FEWER FAILURES.

BUSINESS IN BRITAIN. ' i TAXES ABSORB HIGHER PROFITS. > For the eighth year in succession, the 1 number of business failures in the United j Kingdom allows a reduction. In 1940, the total declined sharply from 4648 to ! 2053, whereas in the previous year the j reduction was only from 5443 to K>4B. I The increased stability of industrial j enterprise, which has been proving ever ' I since thv trough o: the depression of the j early 'tiiirities. has been accentuated by I the rising proportion af businesses that | dnrinp tlie war have become suppliers to ! the Government, states "The Economist." j Total profits of industrial companies are shown to have risen from £376T47,000 to I £410.410.000. Bisinc taxation has. of j course, prevented this improvement from j being passed on. in the main, to share- : ho'ders. and net nrofits have actually de- ' i ' lined from ±'216.713.000 to £203.223,000. j ■ But the variable element in equity hold- • ni-s _ owes its raisin d'etre to the risk bearing service which owners perform. | The bankruptcy statistics for the past I y:ir indiiate that industrial risk is reI <1 u.0,1 to a mini'imm for the duration | ;in d. t consequently, the present relative ! stability of inilustii.il dividends appears jt" have sound economic justification, j Present "prosperity." such as it is. is not ■ a normal boom from which the investor ; in.i.v expect to make iroo.l th o lean tirties j<c former slumps. In the existing state ; of national emergency, the nation is workj ing for its 1 • f>i. Bankruptcies may be yet I further redured, but net profits as a whole [ :re un'ikr-ly to show any upward movement dnrina the war.