RECOMMENDED.

Auckland Star, Volume LXIX, Issue 226, 24 September 1938, Page 4

RECOMMENDED.

GOVERNMENT STOCKS

A month ago a particular Government j stock, namely, the March 39/43 issue. w?> recommended in these columns as a sound | investment: to-day the recommendation may be extended to all the leading Gov- ] ernment issues of bonds and stocks, to: ! they are all cheaper than they were at 1 that time, and are now at the lowest leveis recorded. How values have slipped can be gii .iged by a perusal of the following table showing the market value of various stocks at this time in recent years, i.e.. together \i-th the acc.-i tied interest that is available t" p:esent putchaseis: - Accrued limii 1037 1938 Interest o ( j. £ s. d. £ s. il. .£ s. d. i.-i i, r.7 ■ i:. n It.", 1.1 0 0 13 o tr. 2 -til 41; I 104 on 1 < iJJ 0 It lllil n 0 0 S K| lr, 4 4ti I'.l ' in.-, 111 tut ir. n Hill IT (; 1 lo 3 ir. il o."i Ino lr, II IM.I 111 o Imi II II 1 111 March. ,*!!» in] ir. n mi in ntS 7 6 0 1 6 November. 3S .">2 IU4 i.i u 104 lun inn u 0 1 o 0 Tiie.-i- aie by im moans peak prices, for dining October. 1930 the 52'35 4 per cents sold at above £112. Such comparisons I make the latest figures look like rock- ( bottom. Interest Yields. Based upon redemption at maturity, practically the whole of the issues quoted above will show to the present purchaser at least 4 per cent per annum, and in sonic cases 4i per cent pel annum. This iate is definitely high when one eonsi,lris the general i.ites of interest. l-)is-icgiirding for the moment war risks, with conseipient fluctuations, the current yield jon British ( lovenunent funds in London is 2*4 to 3 per cent. The rate in Anstralia on Commonwealth loans works out at about per cent per annum. State Security. There is no need to stress the position o: Government stocks from a security point of view. Behind them there is more than the undei taking of a particular Government. | Administrations may come and go. bt't I the liability for Government loans re- • mains, and their discharge at date of , maturity i-s a measure of the country's { i t edit worthiness. The person who owns jii £100 (lovernment bond can be certain I that when the date of maturity arrives he will be able to collect the money iti full. The reputation of the whole community is involved in tliat undertaking. There have, it is true, been isolated attempts in the past to vary the conditions of State issues, but the results have not been such as to encourage any future action of the kind. Taking all the facts into consideiatio i. it can be stated that present investment, in Government stocks provides a reasonable yield to the present purchaser, with good chances of an increase in the value of his holding. LATEST SALES. Sales since last review have been as follows: Banks.-New Zealand. £2 1 11. £2 2 3 121. Insurances.—New Zealand. £2 14, 6 f2i i South British. £2 4 3 t.3'i. Government, etc. —Bonds. 15 4 4d-40. 4 per cent. £101; bonds, rural. 15 0 47. 4 per cent, £100. Stock: 15 1 53-57. 3Vi per cent. £04: 15/2/43-46. 4 per cent. £100 26: T3/4/-40-40. 4 per cent. £100 15 '. £100 17/6 (21: 15 0 52-55. 4 per cent. £100 2 6. £100 (2.1. tliHt 5 . £100 10 : March. 39-43. 3H pe: cent, £0K 7 9 (2): November. 38-52. 3Vi per cent. £100 (31: May. 30-52. 3V& per cent. tMOO: September. 30-43. 3V4 per cent. £98 7 fl. Auckland Harbour Board. 9 7/55. £102 10 : 9 7 49. £100 1.5'. Mount Albert Borough Council. 1 7/41. £100 15 : Hamilton Borough Council. 1 7,51. £101 10 ': Otahuhu Borough Council. October. 1044, Cliil 10 ; Amalgamated Brick (Wellington i. £90 s'.

Mining.—Waihi Investment. 8 '3: Broken Hill South. £1 9 9: Loloma. £1 3'5%: Mount 10 9'«: Mount Morgan, pref.. £1 0 9: North Broken Hill. £2 4'9, £2 6 : Rawanc Tin, 8 : Wellington Alltivials. 5 3.

Australian, etc. -Australian Glass, £4 IT. £4 113: Alloy Stool (Aust.4. 7'3: Broken Hill Proprietary. £2 15'6. £2 15 12). £2 14 0 (2). £2 14 0 (4). £2 I.VO, £2 I.VIO, £2 l.i 0. £2 I.V«. £2 13 9 f2"% £2 14 0. £2 14 3. fCon.l £1 17'6: Burns Pliilp. £'2 10'0: Dunlop-Perdriau. £1 0/0: Klectrolytic Zinc. £1 10'4. £1 19 9. £1 10 G. £1 19'3: Electrolvtic Zinc, preference. £2 3/ (41. £2.T. Coles. £3 17 ': T.C.1.. preference. £1 I' 7 (21: Kauri Timber. £1 2'6: Tooths. £2 12-3: Woolworths (Sydney).' £1 0 3. £1 0 2. £1 0/3 (3); Woolworths holdings. 14 10. 14' H.

Dominion. —-Auckland Gas. £1: Dominion Breweries. £1 10". (new issued £1 0': Clayton Arnold. £1: Consolidated Brick. 7'3: Farmers' Trading A preference, £1 2': B preference £1 1/6: Milne and Choyre debenture stock. 16/6: MeKenzies, £3: New Zealand Newspapers. £1 14/6; New Zealand Breweries. £2: Pnkemiro. 17 6: Peters Ice. £1 2': Ttei.l Rilbber. £1 2 6: TnvanaU; Oil. 12': Wilson* Cemont, 16 7. 16 6. 16 7: Woolworths (New Zealand). 18 (5: New Zealand Perpetual Forests ("4' paid). 113.

TREND OF MARKET. The following table indicate* the fluctuations in the values of various securities:--Dec. 22. Sent. Ifi. Sept. 23. I f»nr. 193S. 1038. £ s. d. € p. «1. £ s. d. A".i-i:i ... lft 1". 0 *10 10 0 *10 10 0 <'nmiuerriul ft 17 O O 15 11 O 15 S K. s. nn'l a. r» 7 o 5 3 (i 5 3 fi Nar.. S.7. . 2 1.". 0 2 12 3 2 12 H Nat.. Aus. . 7 i> 0 ♦(» 11 0 •(> 11 ft N.S.W. . . 32 17 fi »30 5 0 »30 5 ft X. Zealand 2 4ft 2 2 0 2 2 2 I nion . . . 0 6 6 »8 8 O *S 8 O MISCELLANEOUS. £ s. cl. £ s. (1. £ s. d. N'.Z. liisur. 3 3 0 2 15 O 2 14 0 S. British . *2 S r> 2 5 n 2 4 3 GnliN. M. . 1 13 ft 17 ft *1 7 ft British Tob. 2 10 fi 2 5 fi 2 7 0 ltrokiMi Hill 3 3 !l 2 1<> 3 2 1.". „ft Kiev. Zinc-. .27" t2 ft ft 1 19 ft (l>r<-f.i 2 1ft <» f 2 3 fi 2 4 :! Aus. Gla«R 4 12 0 4 12 ft 4 11 3 Mt. T.yell 1 10 ft 17ft 1 fi S Col. Sugar 47 1ft ft 47 1ft ft 4fi 7 fi Auok. Gas 11ft 104 1 (I 0 Wilsons C. ft 17 fi O 16 fi 0 10 0 N.Z. Brew. 2 fi fi 1 1!) fi 1 19 9 TX>m. Brew. 1 lit 0 1 1ft ft i 1ft 3 Farmers T. 1 0 0 0 19 8 0 15 6 GOVERNMENT STOCK. £ s. d. £ s. d. £ s. d. 1952-55 102 10 0 100 2 0 100 ift 0 11*30-52 101 0 0 100 ft ft 10ft Oft 1953-57 98 5 0 94 5 0 03 15 0 •Nominal. tEi dividend or interest.