FINANCE AND COMMERCE

Press, Volume LXXVI, Issue 23194, 4 December 1940, Page 11

FINANCE AND COMMERCE

WAK EFFORT OF. DEMOCRACIES FURTHER sacrifices REQUIRED As Hit li'r's armies have advanced from conquest to conquest, the German press ha? hailed the Nazi triumphs af heralding a world revolution l . In opposition In this, the totalitarian methods of warfare have created a tidal upheaval m the sentiments of peaceloving democracies, strengthening their resolution and imposing a growing recognition of the need for united effort and sacrifice. The task of winning a war is not an easy one. It involves not only the temporary abandonment of progress, but the transfer of resources to war purposes. Success will depend on the efficient diversion of the available supply of labour and resources from civilian to military employment, and on maximum production and output. In this adjustment New Zealand and Australia, as all other democracies, are faced with many problems. "We are fighting an enormously powerful nation prepared to make almost limitless sacrifices. If we are to conquer we cannot do less.” In these words Mr R. W, Gillespie, president of the Bank of New South Wales, addressed the annual meeting of shareholders. “Australia.” he said, "can play her proper part In the war only by drastic reductions in civilian consumption." New Zealand’s Part Turning to New Zealand, Mr Gillespie said that the war had increased the difficulties and intensified a problem which had been developing for many years in the Dominion. Spending power was high and the Government was continuing to use credit expansion to finance a portion of its outlay. Rigid import control had been resorted to in order to conserve foreign exchange resources, but insufficient efforts had been made to reduce the volume of spending. The Government had to provide for rapidly expanding defence expenditure, at home and abroad, which made it all the more necessary to curtail the expenditure of private individuals. “But,” continued the president, “it also imposes on the Government the duty of surveying its own expenditure outside the war effort and of attempting to reduce it where possible.” Ways and Means The considerable increase in taxation and the compulsory loan were referred to by the president. These measures would Involve extremely high contributions from the middle and large income classes. But as sources of Government revenue, these methods were less dangerous than further resort to central bank credit, which would only stimulate inflationary forces. The estimated military expenditure of the New Zealand Government in this year was £N.Z.4Om. including £N.Z.19.75m. to be raised and spent abroad. At the same time, commented Mr Gillespie, the proposed expenditure on public works from loans is still very high. And it is to be hoped that the Government pursues its declared policy of devoting as much as possible of this expenditure to defence requirements. The supremo object of the community, concluded Mr Gillespie, is no longer to raise the standard of life, but to win the war. This "entails centralised direction and a strong lead from the government.”

STOCK SALES BANGIORA There was no entry of sheep at the weekly stock market at Rangiora yesterday. Prices ranged as follows; Cattle—Springing heifers, £8 15s to £lO 10s; cows in profit, £3 17s 6d to £4 15s; store cows, £4 to £6 ss; two-year-old hellers, £4 18s 6d: yearling heifers. £3 16s; bulls £4 to £5 IDs. Pics — Baconcrs. £3 10s; stores. 3Bs to Ms 6d; slips, 28s to 335; good weaners, 23s to 28s 6d; smaller weaners, 22s to ?4s. TIN WALD Very few fat sheep were yarded for the Tinwald stock sale yesterday. Prices ihowed a marked Increase, due mainly to local demand. A rise of as much as two to fotir shillings a head was noticeable. The top price of the sale was gained py Moore Bros. (Seafield), who sold six ewes »t 29s 7d. Principal sales were:—On account of S. M, LIU (Tinwald), 5 at 22s 4d; Moore Bros. (Seafield), 17 at 25s Id to 29s 7d; Mrs R. Holland (Tinwald), 11 at 25s 7d to 27s Id; Clients, 149 at 15s 6d to 27s 7d. Fat Wethers—On account of clients. 22 It 22s 4d to 27s Id. Fat Lambs—On account of clients. 22 at 23s 7d to 28s 7d. Store Sheep—On account clients, 43 ewes ind lambs at 17s 2d, 107 six and eighttooth ewes and lambs at 14s 3d. 86 sound ind failing-mouth at 10s Id. Cattle—On account of clients, fat cows It £9. £8 10s. £7 15s. £5; three fat heifers at £0 15s to £8 ss; one' bull at £3 10s. KAIKOURA There was a good attendance of buyers It the Kaikoura stock sale on Friday. Entries Included some good lines of forward cattle. Demand, however, was poor, and prices were below expectations. Ten (at cows were sold at £B, 10 forward epwa made from £8 10s to £7 10s, 11 •tore- cows sold at £3 15s, 16 cows with ealves at foot made £5 12s Bd. No sheep Were sold. LORNEVILLE (TKESS ASSOCIATION TZLZGRAM.) . INVERCARGILL, December 3. Because of the show next week, there Was a double market at Lorneville to-day. The fat sheep yarding was an extra large °ne, consisting In the main of ewes, the majority of which were of good quality. In the early stages of the sale values Were about Is a head lower than last Week, but from then on the market •howed a firming tendency with values ° n a par with last week's rates. The sale Was a good one in view of the big yarding. Extra prime heavy shorn wethers sold at up to 41s 9d, prime 37s to 38s fad, good 33s 6d to 355; lighter sorts, 29s to 31s; extra good young ewes (shorn), to 30s; Prime, 27s to 28s 6d, good 29s to 26s 6ci, medium weights 23s to 245, lighter sorts 20s to 21s 6d, unfinished 15s to 17s Prime young woolly ewes, 36s to 37s 6cl, good 34s to 355, medium sorts 32s 6d to 33s 6d.

The quality of the lat lambs all over *BB good, but the number yarded was in *xcess of requirements, and the result Was that values were fully 2s 6d a head lower than last week, and passings were sequent. Prime lambs brought fromSfas ™ to 28s, good ’24s 0d to 25s 6d, medium heights 22s 6d to 23s 6d, and lighter and .unfinished 20s to 21s. „ ~ . The yarding of fat cattle was full ana included a few pens of good ua r hiedium-weight bullocks and heifers The Priority of the yarding was cows, many ?* which were unfinished. Compared with last sale, good cattle, more especially buiwcks, showed an improvement of If 0 ™ to 15s a head. Prime bullocks realised «om £ls to £l6, handy-weights £l2 las ’0 £l3 15s, lighter £ll 5s to £l2 ss, smab to £io 15s: prime heifers £l2 10s to f'aSs, medium £ll 5s to £l2, lighter £9 to fio 10s. smaller £8 10s to £O, fume cows £l2 to £l3 ss. good £lO 15s ~*ll 10s, medium weights £7 10s to f 1 ? ss, unfinished £8 5s to £9, and tntSiM- £6 to £7, ■■

STOCK EXCHANGE BUSINESS local markets dull SEVERAL STOCKS DEARER Markets were dull on the Christchurch Stock Exchange yesterday, and dealings were restricted. Price levels generally were well maintained and several stocks showed an upward move. Government issues were in firm demand with buyers of the War Loan. 1953, offering £BO 10s without attracting sellers. Bank of New Zealand rose sharply to 41s 9d, sellers slaying in at that price, buyers at 41s 6d. Bonds Hosiery were firmer with buyers at 295, Christchurch Gas were fractionally firmer at 23s Bd, and late offers of 23s 6d failed to attract sellers. New Zealand Breweries (ex div.) had dealings at 31s 8d and 31s 6d, market closing Sis 4d buyers, 31s lOd sellers. Dunlop Rubber had business at 20s 7Jd, Buyers of Macduffs (pref.) raised their bids to 19s 3d. New Zealand Drug Co. were firmer with buyers at 775. Buyers of New Broken Hill moved up to Ills 6d, no sellers offering. Sales Reported—Listed Stocks: 100 Bank of New Zealand, 41s 9d; 150 Christchurch Gas, 23s 8d; 350 New Zealand Breweries <cx div.), 31s Bd, 31s Gd; 200 Dunlop Rubber, 20s 7Jd. LATEST QUOTATIONS Government Debentures—3J p.c. Stock 15/1/53-37, b. riot 10s; 31 p.c. Bonds, 15/1/53-57, b. £lOl 10s; 3,1 p.c. Ins., 13/11/30-41, b. £100; 4 p.c. Ins., 1043. b. £lOl 12s 6d; 4 p.c. Ins., 1040. b £lO3 10s; 4 p.c. Ins., 30/11/48, b. £lO2 10s; 4 p.c. Ins, 19.9, b. £lO3 15s; 4 p.c. Ins., 1949-52. b. £lO4 ss, s £105; 4 p.c. Ins., 1954-38, b. £lO6 ss; 4 p.c. Bonds, 1946. b. £lO3 10s; 4 p.c. Bonds, 1949. b. £104; 4 p.c. Bonds. 1955, b ElO6 ss; Rural Bonds. 5 p.c.. 15/9/47, b, £lO3 10s. s. £lO4 10s; War Loan. 1/10/53, b. £BO 10s. Other Debentures—North Cantby. Elec. Power Board, s. £106; Auckland Gas, 5 p.c. Perpetual, s, £lO2 ss; Booth, Macdonald. 1/6/47, b. £7O; N.Z. Rcfrig., 4i p.c.. 1/8/40-45, b. EIOO 15s, s ElO3, Banks—Comm, of Aust.. b, 15s; Comm, of Sydney, s, £9 4s; Natl, of As’asla. (£lO paid), b. £l2; Natl, of A'asla. (£5 paid), s. £6; Nati. of N.Z., b. £1 16s, s. £1 18s 3d; N.S.W., b. £29 10s; New Zealand, b. £2 Is 6d, s. £2 Is 9tl; Union of Aust., b. £7 Is. Insurance—Mercantile Mutual, s. £1 12s 6d; National, b. 17s 9d; Standard, b. £2 19s 3d; Aust. General, s. 19s 6d. Loan and Agency—Dalgcty and Co. (cum div.), s. £7; Christchurch Building, b. £l6 2k 6d; Mutual Benefit, b. £l3 10s; National Mortgage (A), s. £1 17s; National Mortgage (D), s. £1 2s; N.Z. Guar. Corpn., b. 2s 8d; N.Z. Loan and Merc. Stock (prof., cum div.), s. £4 12s; Perm. Investment, b, £9 12s 6d; South Island Finance (8s paid), s. 7s fid; United Building, b. £1; Wright, Stephenson, s. £l. Shipping—P. and O. Def. Stock, b. £1 4s 9d; Union (pref.), b. £1 6s 6d. Frozen Meat—Canterbury, s. £ll ss; N.Z. Refrig. (£1 paid), b. £1 0s 3d. s. £1 0s 9d; N.Z. Retrig. (10s paid), b. 9s sd] s. 9s 7d; Southland, b. £1 14s 6d; South Otago b. £5; Waitaki (cum div.). b. £4 15s.

Woollens—Yarra Falls, s. £2 7s; Bonds Hosiery, b. £1 9s; Felt and Textiles, b. £1 18s 6d; Kaiapoi (17s paid), b. Ills 6d; Kaiapoi (7s paid), s. ss; Kaiapoi (pref.), b. 17s; Mosgiol, s. £ll ss; Oamaru, U 19s 6d, s. £1; Timaru (cum div.), s, IBs Od; Wellington, b. £6 12s 6d; Wellington (pref.), hj. £7. Coal—Westport, b.' £1 2s Bd, s. £1 4s; Westport-Stockton. b. 2s 4d, s. 3s; Wcst-port-Stockton (pref.), s. 6s 2d. Gas—Auckland (10s paid, fully paid), b. 7s 6d, s 7s 9d; Christchurch, b. £1 3s 6d; Christchurch (10s paid), s. 10s lOd. Breweries —Ballins (15s paid), b. 10s 9d. s. 12s; Dominion (cum div.), b. £1 9s 7d; Dominion (pref.), b. £1 9s 7d; New Zealand (ex div.), b. £1 11s 4d, s. £1 11s lOd; Swan, b. £1 ss: Tooths, s. £2 14s. Miscellaneous—Alloy Steel (N.Z.), s. £1 17s; Andersons (pref,), s. 18s; Aust. Con. Industries, s. £2; Aust. Iron and Steel (pref.). b. £1 6s; Death and Co., s. 15s 3d; Berlei (N.Z.), b. JE3 6s; Booth. Macdonaid (pref >. t>. 4s 7d. s. ss; British Tobacco (cunt div.> s. £2 9s 6d; Broken Hill Pty.. hj. £2 5s 3d, s. £2 Os; Burns. Philp, b. £2 11s. s. £2 13s 6d; Colonial Sugar, b. £52; Dominion Builders, b, 5s Id, s. 5s 9d; Donaghv Rope b. £2 12s 6d; Dunlop Rubber, hj £1; Electro. Zinc, b. £2 14s, s. £2 18s; Electro Zinc (prcl.), s. £2 18s; G. J. Coles, s. £3 10s; General Industries, s. 18s Od; Greater Crystal, b. 13a 6d; Hay's, Ltd., b £1 3s; Hay’s, Ltd. (cont.), b. 18s; David Jones, b. £1 14s fid; Kauri Timber, b. £1; Macky Logan Caldwell, b. 18s 3d: Mason. Struthcrs, b. 9s 9d, s. 12s; Milburn Lime, s £1 19s fid; Macduffs, b. 10s lid; MacdufTs (pref.). b. 19s 3d: McKenzies. Ltd. (cum div.), b. £2 4s fid; National Electric, b. 18s; N.Z. Drug Co., b. £3 17s; N.Z. Drug (2nd instalment paid), b. £2 ss; N.Z. Farmers’ Co-op. (A pref.), s. £2; N.Z Farmers’ Co-op. (B pref.), s. £1 10s; N.Z. Farmers’ Co-op. (4J p.c. Stcok. 17/5/49). s, £B4; N.Z. Farmers’ Co-op. (4J p.c. Stock. 1949), s. £B4; N.Z Farmers’ Co-op. 4J p.c. Stock. 27/7/51, s. £B4; N.Z. Farmers' Fertiliser, b. £1 2s; N.Z, Newspapers, b. £1 11s lOd: N.Z. Paper Mills, b. £1 9s, s. £1 11s; Selfridges, b. 17s fid; Standard Cement b. £1; United Pictures, s. 8s; Weeks Ltd., b. £7 17s 6d; Whitcombe and Tombs, b. £3 4s; Wilcox, Mofflin. b. fis; Wilson’s Cement, b. 18s fid, s. 19s; Woolworths (Syd.) (ord.), s. 17s 9d; Woolworths (N.Z.) (ex div.), s. 15s Id; Woolworths (N.Z.) (pref.), s. £1 5s 3d; W. R. Carpenter, b. £1 15s. Overseas Listing—Woolworths (S.A.), s. 15s Australian Mining—Mount Lycll, s. £1 9s fid; Mount Morgan, b. 11s; Wellington Alluvials. b. 4s 3d. s. 4s fid; New Broken Hill. b. 16s fid. . . . . N.Z. Mining—Addison s Flat. b. lid; Austral (N.Z.), b. £1 ss, s. £1 10s; Barrytown, s £1 ss; Big River, s. Is 4d; Goldfields Dredging, b. Id; Grey River, b. 16s, s 16s fid; Maori Gold. s. 4d; Moonlight Goldfields, b. 4d; Mossy Creek (ex div.), s. Is; Nemona, b. 3d. s. sd; New River, s. sd; Ngahere, s. £1: Ngahere (def.), s. 15s; Okarlto, b, lid, s. Is 9d; Waihl Investments, b. 4s 4d, s. ss; Worksop ExteUnl?steSd Stocks—Air Travel (N.Z.), s. £1 Is - Aust. Investment Trust, b. 2s, s. 6s 9d; Assoc. Gold Dredg. (8s paid), b. 11s, s. 11s 6d- Aust. Mot. Petrol, b. Bs, s. 12s; Blackball Creek, s. Is Id; Christchurch Press (cum div.), b. £6; Belvedere Maisonette, s 17s 9d: Belvedere Maisonette (pref.). s 19s; Carbonic Ice, b. £1 ss; Mikonui (3s 6d paid), s. 3s; Masonite (2s 6d, def.), s £1 15s; Paparoa Coal, S. 6s 8d; Recce. Ltd E (prof.), b. 3s 3d; South Seas Fishing, s. 12s 6d; Selfridges (N.Z,), b. 4s 3d; Taramakau (5s paid), s. 4s; Timaru Lime, s. £1 2s 9d; Urlwins (ord.), b. £2 2s 6d AUCKLAND Sales—War Loan, 1953, £BO 10s; Rotorua Borough, 1943, £101; Bank of N.Z.. 41s fad (4)- South British, 49s 6d; Dominion Breweries, 30s (late sale), 30s; N.Z. Breweries, 31s 8d: Broken Hill Pty.. 45$ 9d (late sale); Dunlop Perdriau. 20s 6d; M.K. Manufacturers. 6s Id; Taranaki Oil Developments (4s 6d paid), 3s (2). WELLINGTON Sales—Late Monday; National Bank of N.Z.. 37s 3d (2): McKenzies Storey. 455; Wilson’s Cement, 18s 9d: Waihl Investments, 4s 4d. Sales yesterday: Auckland Electric Power Board, 41 p.c., 1959, £IOB 15s; Bank of N.Z.. 46s 6d (4); N.Z. Guarantee Corpn., 2s Od; South British Insurance, 49s 7Jd; N.Z. Refrigerating 9s 7d; Dominion Breweries, 30s; Colonial Sugar, £52; McKenzies Stores. 44s 9d; Broken Hil South 25s 9d.. Unofficial list:-100 National Tobacco. 31s. du N e DIN Sales—Kaiapoi (con.) 4s 8d (2). • Sales Reported—Bank of N.Z. (late Monday, 41s; South British Insurance, 49s 9d' Bruce Woollen (ord.), 21s; Colonial Sugar, £52; Dominion Breweries. 30s. Unlisted: National Tobacco, 31s. SYDNEY The recent bountiful rains, which are benefiting pastoral aiid other industries, are having a heartening eiTect on the Sydney Stock Exchange, where share prices were very firm yesterday and turnover generally was on a wide scale. Morning Sales—Commonwealth Bonds, 4 pc 1941: £IOO 12s 6d; 1961, £109; Bank of New South Wales, £2B ss; Tooheys, 29s 6d; Tenths, 53s 3d; Anthony Hordern, 13s 9d; Anthony Hordern (pref.), 21s; Australasian Paper. 33s 3d: Cash Orders, 18s Sales—Union Bank, £6 ss; Commercial Bank of Australia, 14s 9d; Colonial Sugar £4B 12s fid; Burns, Philp, 53 S ■ Australian Guarantee Corporation, 17s’ Australian Consolidated Industries, 28s' Standard Cement, ZOs 3d; W Atkins, 22s’ W Adams, 15s; Henry Jones, 53s 6d; Mt.' Lyeli. 28s 9d; Broken Hill Pty., 465. MELBOURNE Sates —Felt and Textiles (2nd pref.). 24s 6d; Howard Smith, 21s lid; Metropolitan Gas, £l3 Us: Emperor, 11s lOd; North Broken Hill, 40s.

AUCKLAND WOOL CHEQUE TOTAL OF £338,717 FOR THIS SEASON BALE AVERAGE £l7/15/(PBES3 ASSOCIATION TELEGRAM.) AUCKLAND, December 3. Cheques totalling £229,125 have been distributed to sheep farmers throughout the Auckland Province as the proceeds of the second Auckland wool appraisal of the season which , as held between November 14, and November 18. A total of 12,878 bales was appraised. the net weight of wool being 4.3R6.7781b. The average prices were £l7 15s lOd a bale, and 12.54 d per lb. These prices arc higher than for the first appraisal. The total cheque for the two appraisals so far this season is £338,717. COMPANY NEWS DALGETYS ■ The New Zealand superintendent for Dalgcty and Company, Ltd., has received advice from the company's head office in London that at the innual meeting to be held early next year the directors recommend declaring a second interim dividend of 4s a share, less British Income tax, for the year ended June 30 last. There is not likely to be any further distribution by way of final dividend. The dividend will be payable on and after December 20, and the transfer books will be closed from December 5 to 19, both days inclusive. TIMARU WOOLLEN The Timam Worsted and Woollen Company, Lid., will pay a dividend of 6 per cent, for the year ended October 19, payable on December 18. AUSTRALIAN WHEAT PROBLEM BIG SURPLUS WAS - INEVITABLE SHIPPING COMPLICATIONS

‘‘Even if there had been no war, the Australian wheat industry would have been faced with a crisis,” Professor S. M. Wadham writes in the current issue of the ‘‘Monthly Summary,” published by the National Bank of Australasia. ‘‘lt had a bumper crop of over 200,000,000 bushels in 1939-40, and the international wheat market is in no state to deal with bumper crops. High yields in the Argentine in 1938-39 and in Canada in 1939 started the difficulty. By July 31 last. .Canada had a record carry-over of 300,000,000 bushels, and this was followed by another large crop of 450,000,000 bushels. Small wonder that Britain, hard pressed for shipping space and with this immense store of grain within three weeks’ voyage of her shores, has intimated that she is not yet able to lift from Australia the balance of her purchases made earlier in the year, and that she may be unable to make further purchases next season. "Some unenlightened persons have considered Britain’s attitude harsh, but any other lino of action would have been that of a fairy godmother of a particularly stupid kind. Canada occupies a position in wheat comparable to ours in wool—consequently she had a right to expect some special consideration. “Meanwhile, the war with its attendant blockade has closed many import markets, and an accumulation of stored surpluses of the grain must be expected in all extra-European exporting countries. Restrictive policies could ameliorate, but arc unlikely to correct, the position. “The Australian Wheat Marketing Board took over 17,750,000 bushels of (he 1938-39 crop, and has received 195,700,000 bushels of the 1959-40 harvest. It. has so far sold the wheat of the 1938-39 crop and 144,000.000 bushels of the 1939-40 harvest, but a considerable proportion of these sales has not yet been shipped. It has paid out 3s 2Jd a bushel for bagged wheat on trucks at ports, and has accumulated an overdraft of about £14,000,000, which, presumably.' is covered to a large extent by the sums expected to be received from sales made but not yet lifted. Had the war not been in progress it is extremely unlikely that the price of wheat would have been as high as 3s 2Jd a bushel in Melbourne to-day . . . “Much has been said in recent weeks about stabilisation of the wheat industry in the future, but it is not clear that sufficient emphasis has yet been placed on the stark facts of the wheat position in relation to the world market for a satisfactory scheme to be drawn up,”

FOREIGN EXCHANGES

Telegraphic rates ot exchange on overseas centres yesterday were quoted by the Bank of New South Wales as follows (the first quotation being the buying one and the second the selling);—On New York, dol to £1 N.Z.. 3.2542. 3.2050: Montreal, dol. to £1 N.Z., 3.6039. 3.5290; Greece, drachmae to £1 NiZ., —, 412,70; Java, florins to £1 N.Z., 6.187. 6.004: Hong Kong N.Z pence to dol., 18i. 19 1-32; India and Ceylon N.Z. pence to rupee. 22 19-64, 22 54-64; Shanghai, N.Z. pence to dol., —, SJ; Singapore, N.Z. pence to dol.. 34 53-64. 35 37-64; Manila, pesos to £1 N.Z., 6.559. 6.442.