TREND OF TRADE INTEREST RATES. COMPANY AFFAIRS. CANTERBURY PRODUCE.

Auckland Star, Volume LXIV, Issue 83, 8 April 1933, Page 4

TREND OF TRADE

INTEREST RATES.

COMPANY AFFAIRS.

CANTERBURY PRODUCE.

TOLD BY BANK RETURNS. MARCH STARTS BRISKLY. THEN SLOWS DOWN. The latest "Abstract of Statistics" furnished particulars of bank debits, or the total amount debited to all accounts (excluding Government) by the banks during each week. The average weekly debits during each month are as follow: — 1030-31. 1931-32. 1932-33. £ £ £ April . 15,488,263 12,446,234 11,045,994 May .. 16,740,723 12,356,913 10,854,853 June . 14,749,756 10,946,975 10,175,207 July .. 14,376,290 10,879,546 10,099,095 Aug. . 13,435,185 10,406,349 8,793,43S Sept. . 13,552,937 9,711,686 8,780,256 Oct. . . 13,281,616 10,341,949 0,963,718 Nov. .. 13,116,703 10,170,445 10,398,942 Dec. .. 14,074,112 11,705,068 10,901,298 Jan. .. 10,701,498 10,237,433 9,595,728 Feb. .. 12,319,954 12,224,815 12,062,673 Mar. . 13,941,065 11,459,051 *12,753,891 •For two weeks only. These figures give a fair idea of the volume of business done generally. They indicate the quieter state of trade during the winter and early spring, when exports are low and internal trade is quieter, and the greater activity in the summer time and the flush of the export season. An important factor in the returns is the influence of lower prices in restricting the amount necessary for financing a given quantity of stocks. The year ended with a fair volume of trade represented and for Christmas week the average reached £15,426,000. With the New Year came a sharp reaction and the average for the first three weeks of 1933 was lower than had been registered for a considerable period. However, the figures for the close of the month we're much better. The average was lower than that recorded for the same month over the last two years. February commenced with what must be considered normal turnover under existing conditions, and the returns for the full month were little short of those recorded in February, 1931 and 1932. March started off briskly, and the average for the first week was over £15,000,000, but this rate was not sustained, and the second week showed something over £10,000,000.

The Government statistician, in reference to these bank debits, comments as follows: —

"The volume of business transactions taking place during the month as measured by the total of bank debits placed to individual customers' accounts suggests a heavier month than was experienced in January. As, however, the sales tax was imposed for the greater Eart of the period, and, in addition, the ighcr exchange rate operated for +he entire month of February, as against only a portion of January, it is probable that the influence of these two factors has produced some effect upon the higher total recorded for bank debits, without necessarily indicating a corresponding increase in turnover."

AN AUSTRALIAN PROPOSAL. MORTGAGES AT 4 PER CENT. In order to hasten the economic recovery of Australia the A.M.P. Society has made a proposal to the Federal Government which is designed to bring about further reductions in interest rates. In a letter to the Prime Minister of the Commonwealth the society says: — "If the heads of the Federal and State Governments arc serious in their contentions made from time to time, that the further reduction in interest is essential for the welfare of the people, then it is incumbent on them to do their part to bring about such a reduction—not by a further reduction by law, which would take more money out of the pockets of the investors and lenders, but by a reduction in taxation. The Governments can, if they will, reduce the ruling rate by passing a law providing that if the interest on a loan on mo~tgage secured on real estate is at a rate not exceeding 4 per cent, such income shall be exempt from taxation. If the interest rate is higher than 4 per cent, the tax at existing rates to be levied as usual.

"If the Governments passed a law providing for the deduction from the taxable income of the interest on 4 per cent mortgages, the A.M.P. Society would reduce the rate of interest on its mortgages secured on real estate to 4 per cpnt.

"The boon such a law would be to borrowers, particularly the man on the land, would be very great. It would mean an immediate relief in many instances of nearly 30 per cent in their interest bill, and in some cases of one-third."

GUARANTEE CORPORATION. NO ORDINARY INTERIM DIVIDEND. The secretary of the Auckland Stock Exchange, Mr. W. M. Barton, has received advice from the directors of the New Zealand Guarantee Corporation to the effect that, after a very caref.d review of the results of the half-year and considering the difficulties of the times, the board had decided that the question of the payment of a dividend on ordinary shares should be deferred until the end of the current year. The customary dividend 011 preferential shares, less the compulsory reduction of 20 per cent required under the National Expenditure Adjustment Act. will be paid. COOL STORAGE OF ONIONS. MARSHLAND EXPERIMENT. The experimental shipment of onions made by Marshland growers into cool store in Wellington has now gone north, ancl growers will 110 doubt wait the outcome with the greatest interest (says the "Christchurch Times"). The initial shipment is of 100 tons. Costs of storage and freights are fairly heavy, and a return of £10 a ton roughly will have to bo obtained to make the proposition any more attractive than selling at the present price of approximately £2 10/ a ton. Charges altogether amount to somewhere over £7 a ton and are made up as follows: — £ s. il. Cool storage for six months 4 0 0 Crates and packing 1 4 0 Kailage and freight 1 15 0 Besides these charges there are further dues for wharfage and cartage in Wellington. C'ool storage would seem to be more necessary than ever this year, as the Marshland crop, and indeed crops all over Canterbury; have been better than for I some time. Throughout the season the weather has favoured growers, and the harvest has been able to proceed uninterruptedly. Most of the crop is nowharvested. about a fortnight earlier than usual. Yields in the Marshland district run about 14 tons to the acre, and outside on lighter land the yield is abont 10 to 12 tons.

(By Telegraph.—Press Association.) CHRISTCHURCH, Friday. There has been no development in the grain and pi'oduee market this week, and very little business is passing. Potatoes ai j still quoted at 55/ a ton, f.0.1)., sacks included, equivalent to 32/6 on trucks. The price of fowl wheat has advanced to 2/11% a bushel for prompt delivery, and to 3/4 for spread April-September delivery. The oats market is lifeless.