BRITISH FINANCE

Hokitika Guardian, 21 June 1938, Page 2

BRITISH FINANCE

HIGHER PROFITS. LONDON, Juno IS. Following hard upon the outstanding .success of the defence loan has come a, hatch of excellent company results. The General Electric Company’s profits touched a record of £1,772,00!). Reserves are further strengthened by the allocation of £IOO,OOO from revenue to bring them up to £4.500,000, while current assets are higher at nearly £8,000,000. The works are fully employed, necessitating the recent extensions. Overseas business has continued to improve considerably, exceeding any previous year New Zealand, Australia, the Argentine, and India were especially good customers. Boots Drugs similarly report a record volume of sales. Callenders Cables show the largest gross profit in history, with a substantial increase in New Zealand, Australia, gnd South African business. They are still obtaining satisfactory orders.

The •’Economist’s” analysis of results of 79 companies announced durum (lie week shows an increase of 12 per cent, compared with last year. Total profits of the 1248 companies analysed since January 1 a,mount to £202,000,000, compared with £179,000,000 for the pretims year The markets closed cheerfully but business is still negligible. The defence loan has not only revived the morale of investors hut also is an impressive demonstration to foreign Bowers of Britain’s financial strength. The Government is now financially well ahead of the rearmament task and will neeelerafe spending, with a view to' mitigating the business recession.

Seven copper producers outside the United States have sprung a. surprise in an announcement that they are cutting output on July l from 10.3 per cent to 95, lowering their output bv 10,1)00 tons monthly. The deterioration of the position has been caused soleby by the precipate fall of United States consumption and fears that American exports will continue at a high level. Ihe iecling in the commodity markets is more cheerful than for some time. Fruit has been in strong demand at higher prices owing to a widespread'failure of the British crops

Jooley Street is endenvouriurr to maintain Dominion butter at its present level, hut the weakness of Continental stocks is something of a drag on the market. The lower retail prices are likely to improve consumption and strengthen the situation.