CAPITAL DISTRIBUTION.

Waikato Times, Volume 100, Issue 16814, 4 June 1926, Page 6

CAPITAL DISTRIBUTION.

Though the London Stoolc Exchange may he regarded by most as a purely capitalislic institution, it still serves the small capitalist, with possibly nothing but the savings of lifetime of hard work to invest In order to produce a bare living income, ns well ns the big ones commanding money in millions and tens of millions. If, thus furnishes one of the most sensitive barometers with regard to indications suggestive of cither national or international disturbances that may affect values more or less seriously. One of the most reassuring features about Ihe recent general strike in the Old Country was the confident lone I hat was maintained “on ’Change” almost throughout its course. In fact, standard “home.” investment stocks, the “gilt-edgeds” of financial parlance at no stage suffered any setback, thus providing evidence that Hie British people felt secure in their knowledge that Ihe upheaval would end in only one way, and that though business might suffer, as suffer it will severely, the stability of the country would not be impaired. What is important to remember in this connection is that although there is great wealth in Great Britain in comparatively few hands, yet, after all, wealth there, as elsewhere, is becoming more diffused. It is of interest to recall the contents of a table published recently showing how widely shares in a number of the leading companies in Great Britain are distributed. From that table it appears that the average holding of shares in the “Big Fivc”banks, the five most powerful banks in the world, does not exceed £306. In one of these banks, the Westminster, the average holding is as low as £l3O. In the Royal Assurance Company, which has a capital of £1,119,000, the average holding of shareholders is £100; in the Cunard Steamship Company it is £404; and in the Peninsular and Oriental Steam £603. Whatever sympathy there may be with the coalminers, and there is on all accounts a very great deal, quite outside of their own circle, ills wide diffusion of shareholding would he all against any movement for the subversion of Uic present system of society. It is as well lo remember, 100, Ihc Royal Commission on the coal industry of Great Britain—-whoso report Mr Baldwin wishes to make the basis of a settlement between mine-owners and miners—reommended, among other things, the distribution of some of the profits of coalmining ventures among the miners. It pointed out that in many other industries individual firms have arrangements for distributing part of any profits made above a certain standard, io their employees, either as additions to wages or as employees’ bonus shares, and suggested that by legislation colliery undertakings generally should be required to adopt schemes providing that of all profits divided, above a standing dividend on the existing capital, a fixed proportion should he reserved as shares lo be issued to employees, having regard to the service rendered by them.