Page of accounts from a well known public figure in the 1940s.
Can anybody explain what the purpose of the different figures/columns mean to someone without an accountancy background? In particular, I’m confused why there are two sets of figures. For example there is a dividend of £500 and then on the same line there is a figure of £3.2.6. Why are there two different figures?
Thanks for your help to date on the above questions.
Some further questions: If £500 is the amount of the investment and £3.2.6 is the dividend, does that mean that the £500 was invested in January 1943 or is it an exisiting investment?
Also, under the £500 it says: div £650 do and div £168.19.7 do, are they separate investments for Consolo?
Finally, what were Dublin corporation stocks? These accounts also had substantial National Loan stocks from the foundation of the State, when did these end?
December 13th, 2009 at 6:23 am
I’m not an accountant, but they look like dividends from investments. GNR = Great Northern Railway, GSR = Great Southern Railway, etc. Columns to right in Pounds, shillings and pence but I’m sure you know that. No idea about the names in red, but I assume that they are the beneficiaries of the dividends. Anyway, that’s my best guess. DM (Stock lists from 1940s should comfirm the names of the Companies/ Funds invested in.)
December 13th, 2009 at 3:09 pm
£500 is the amount of the investment. £3.2.6 is the dividend.
December 13th, 2009 at 6:29 pm
This looks like an investment of £500 in British government consols (an archaic form of debt). The investment earns a return of 2.5%, or £12.50 in this instance. Paid quarterly, then, that becomes £3.125 or three pounds two and six in old money.
P.S. This is to take investigative journalism into politicians’ expense claims to a whole new level, by the way!
December 13th, 2009 at 10:23 pm
Q1 - Consols are actually perpetual debt (i.e. no maturity date) and most of it (if not all) would have been issued prior to the 20th century. Hence, they would have changed hands many times over the years.
Q2 - Assuming “do” to mean “ditto”, then yes. The figures in the second column also all equate to 25% of 2.5% of the amount in question. I would also note that there is a different surname in red ink beside each line item.
Q3 - Do not know specifically. Chances are that you will need a specialist to help you there. However, in general, these would have been ways for local authorities / national government to raise money by issuing debt instruments to citizens, etc. Probably for a fixed duration and for a fixed rate of return per annum.
December 14th, 2009 at 5:12 am
[...] Watch out, The Guardian; Elaine Byrne is looking for help investigating the accounts of a 1940s Irish politician. [...]
December 14th, 2009 at 9:26 pm
[...] Watch out, The Guardian; Elaine Byrne is looking for help investigating the accounts of a 1940s Irish politician. [...]
December 14th, 2009 at 9:26 pm
[...] Watch out, The Guardian; Elaine Byrne is looking for help investigating the accounts of a 1940s Irish politician. [...]
December 16th, 2009 at 2:00 am
All of the investments mentioned were “existing investments”.
The “£650 do” and “div £168.19.7 do” are both separate investments in Consols, which are a form of UK government stock (also known as “gilt-edged” or “gilts”).
When buying gilts, one might pay £500 and get, say, £650 in stock if interest rates were higher than the coupon (2.5% in “your” case). When rates rise, the price of gilts goes down and vice-versa. Hence the odd amount of £168.19.7.
Dublin Corp stocks were loans to Dublin Corp. Stephen Kinsella and Karl Deeter want to revive this practice of municipal bonds. They were similar to gilts in almost every way.
National Loans still existed the last time I checked (which was not recently) and are (were ? ) a form of Irish gilt.
December 16th, 2009 at 4:34 am
Very interesting. Reads like a war-time Des Traynor banking/broking service for a select clientele.
December 16th, 2009 at 7:00 am
“Do” is short for “Ditto”, ie. in this case it saves writing out “2½% consols.” on each line.
December 16th, 2009 at 8:09 am
Thanks everybody. This individual was a trustee of shares and although started the 1940s on a low base, ended the 1940s with very valuable stock. They had a good war. There are reasons why they had a good war but you will have to buy the book to figure out why and who the account holder was.