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72

Financial Operations.

The vitality of the British financial market is exemplified

the accounts just published by a leading London issuing house

The issued capital of this concern is over

and finance company.

£2 millions, and its final dividend (declared for the fifteen

months ended the 30th of June last) is equivalent to 25 per cent

per annum, which is the same rate as that paid by the firm for the

preceding twelve months. Though the London issue market could not

but be adversely affected by international conditions, the firm in

question is able to report having raised over £16 million by public

issues and 33 millions by private transactions during the fifteen

months to the end of June.

The amount of British money available for investment is

further indicated by the fact that, according to the latest official

figures, buildings costing over £71⁄2 millions were authorized in

llay this year, compared with 7 millions in May, 1938. On the

other hand, the steady flow of money among the general public may

be gathered from the fact that daily postal receipts in Great

Britain were no less than £149,704 in June. This is an increase of

3.3 per cent over June last year. An interesting extension of

public financing is the recent decision to increase the sun

available for the grant of Export Credits from £10 millions to

£60 millions. In explaining the scope of this extension the

Secretary of the Department of Overseas Trade declared that "it

would enable certain countries to obtain, on credit, supplies which

British industry could provide and which, owing to a shortage of

exchange, those countries were unable to pay for on a cash basis."

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