WEAVING MONEY SPELLS.

Oamaru Mail, Volume XLIV, Issue 14010, 15 March 1920, Page 1

WEAVING MONEY SPELLS.

(London Daily Express.) :Money spinning, always a fascinating occupation, lias under the stress of present conditions become a fine art. The nation 1 * watches almost with- awestruck gazt the creation of millions apparently by the wave of pens, and wonders how it is done. If only they would talk are some half-dozen men in the City of Loudon who lyiow the secret. Men like Sir Edward 'Mackay Edgar, Bt., of Sperlings. Colonel Clare, of George Clare and Co., Mr Hatry,\>f the Commercial Bank of London, and Mr James White, of the -Beechani Trust, some time ago found a modern imitation of the philosopher's stone for which the alchemists of old sought so long. -. Their philosopher's stone was just a simple principle. The value of money, owing to war conditions or currency inflation, or whatever the experts may at long last decide is the cause, has depreciated by a half and more. Therefore the goods that money will buy have ap- - predated by a simliar amount. Now it is a most difficult-thing for a'company or a private business to'write up its "assets. Yet- every company and every business possesses "goods," if only in the shape- of land..bricks and mortar, machinery, and so on. All these "goods" stand at pre war values in their balance-sheets, and therefore at less than half of what they are worth f to-day. - . »,-. Hez'e, then, was the problem' which the money-spinners had to solve—How to realisethe enormous hidden 1 They solved it in this way.' - , Sound, flourishing, steady dividendpaying businesses were selected and offers made to purchase them lock. stock, and barrel. The offers in every . case meant large profits for owners [ who. being in the majority of cases men I of limited vision, wholly engrossed «in [ their own' concerns, were full of doubts and anxieties regarding the future. Such a solution of their problems came to them as a godsend, and they readily made provisional agreements to sell. , The next step was to obtain, independent and thoroughly sound valua- ,'< tions of they properties "as going con- ; corns." These Valuations always ; revealed the enormous increase in the ! worth of the property in terms of ; money, and the rest of the process was easy." New companies were formed, ' sometimes in the form of great amalgamations, sometimes sCs separate conr« corns, but always with.■•capital based' on the present-day valuation. . The final step was the flotation of *fche reorganised business as a public company, and the;immense) flood of newissues during the past year has been, the result. It is legitimate business in. every sense of the word, when the valuation is' one that can be respected. Labor has , been busily engaged; m revaluing its services on the new -money, levels, and capital has done the same. One effect is of particular interest natiotiallv. Businesses which were formerly 'purelv family concerns held/by half a dozen' people at the most are now owned in co-operation by thousands of shareholders. One large shipping cpmpahv. for instance, which was practically owned bv one man, has now 7000 while another great industrial business all thj* capital of which was owned bv one is now d'stributed between" 12,000 people with- an average holding of less.than £IOO each. . These' • money-spinners are thus' not only enabling'ow ( iiers of goods to realise their worth, but they are creating a vast armv of new capitalists who will one dav be a tower of strength to the supporters of law and order should the _ necessity arise. One wonders sometimeswhat the previous owners of the businesses concern--1 ed do with the huge sums they receive I as purchase money. Some take their l; pavmentin shares in. tbe-new; company, but most: take the bulk, incash. . . Bo thev invest it .in' War Loam and; retire ta their country estates to enjoy themselves* quietly for therest of their ;-lives?.-..;".:''..;.'v": .'■ r.'.-H'' .-.■:-■■'. ? v

The moatJ interesting .feature of this teiiflenev to recapitalise industry is the success * which the new companies achieve. v ln most caees-they continue to pa* substantial dividends. The danger lies in. the future, when pfossibly money values may return in *he direc- [ tion of the pre-war level. ' A DEN&JS MOTOR LORRY. When you buy a MJNNIS you get a copimercial lorry built by the oldest manufacturers in England—a lorry' which proved its magnificent quality in the war and is used by corporations, public bodies. v business- honges th* world over. Enquire. The. New Zealand- TJxpfepfi Company. Ltd, Children, like JADE'S WORM'FJGS —sure».ana certain.