THE WEEK REVIEWED.

Auckland Star, Volume LXX, Issue 99, 29 April 1939, Page 4

THE WEEK REVIEWED.

| BUSINESS IRREGULAR. POLITICAL INFLUENCES. SOME TRADING RESULTS. WHAT OF THE FUTURE? The w eek on 'Change which closed last night has truly been a momentuoue one troin the point of view of New Zealand j investors, who are vitally concerned in every move that affects the earning capacity of all classes of enterprises. In this connection the announcement of the Government policy in regard to the admission of imports for the second halt ot the current year came as a bombshell to those importers who had hoped against hope that the hardships experienced in the first half of the year would be lessened in the second. Actually, there were no grounds for such hopes for the weekly returns of the Reserve Bank have shown that the Government's restrictions have so far tailed to lift the holding of sterling hinds. This had been given as a main object in the imposition of import restrictions. "'r ''I- c ' ear that many companies will S i •°u °' u severity of the restrictions winch, in many articles, amount to complete prohibition. There should, of course, be a great clearance of existiug stocks, luc-h in many cases will be very welcome lor in the past few years there has been over-ordering by many firms, but, subject to this factor, there will be lessened turnover, which must be reflected in loss of profits. Only time can tell what firms are in a position to successfully face the losses that are involved in this" arbitrary interference with their business and continue in a position to take advantage of the return to normal conditions, which ate expected when the Government gets over its present difficulties. J hat these difficulties are very re.il are strikingly admitted by the Government in the announcement that the Minister of Finance, the Hon. W. Nash, is to leave for London. It only remains to hope that he will be able to secure the co-operation of the British Government in his endeavour to place the public finance of the Dominion on a more secure footing than it occupies to-day. Meanwhile, the community as a whole moves along quite contentedly spending high wages freely, with little thought for the Government's financial worries and not much for the serious aspect of the country s defence. Costs have risen and are still rising, but they have not yet readied a point where there is not an abundance of money available for pictures, races and various forms of amusement. The trailing banks returns published yesterday show increased note circulation and advances made to customers are in excess of £55.000.000. However, a substantial excess of withdrawals over deposits in the savings banks looks like a first step towards less favourable conditions for the masses.

With those facts as a backing it is not surprising that company results for the financial year ending March 31 so far appear to be coming out quite satisfactorily. During the past week the directors ot Mosgiel Woollens have declared an interim dividend at an unchanged rate, the New Zealand Paper Mills final dividend is unchanged, while Sharlands' interim dividend has been reduced from 2% to 2*/4. At the annual meeting of lvaitangata Coals the chairman said the \'® ar , bad been "most gratifying," and at Macky Logans the managing director stated that the year had been "satisfactory. The interim dividend just declared by the directors of Taringamutu Jimbor Companv at 3 per cent is half per cent higher than for the same period last year. Local Industrials Supported.

A notable feature of the week's business was the increased proportion secured l>y -\ew Zealand industrials. It is true that prices continue at a low level, in inaiked contrast with Australian, which nave made further advances, but at leant sales have been made with a fair range ot enterprises represented. Special attention is obviously being given to industries which seem likely to benefit from the Government s policy of restricting imports and encouraging local manufactures. An instance was provided in the case of Reid Kubber shares, which recently announced a new issue at par. The rights to the • irsue were quoted early in the week and changed hands at 7/. Buyers remained in at this figure, but sellers asked 1/(5 higher, fhere was further slight improvement m Wilsons Cements, which sold i.p to lb/6, and Farmers' Trading were in 'better demand with inquiries for all classes of the company's shares. .There was also a fair demand for both coal and timber shares, but most of the luisiness done in these lint* showed declines in values. An exception was provided in Ley land O'Briens, which at 18/ were 1,9 higher. This was the result of the recent decision to pay back to shaieholders a portion of their capital Gas shares continued extremely dull, and the only sale put through was at 15/, a record low level for this scrip. Bank of New Zealands Cheaper. A feature of the banking section was further weakness in Xew Zealand's, which sold first at 37/6 and later at 37/. This certainly looks like a bargain price for the present purchaser at the lower figure secures 5 2-5 per cent per annum on his out.ay. Nationals again slipped back, sellers dropping their limits to 46/9. with best buyers stopping at 43/. Australian Banks were quiet, but firm, and the only sale recorded was of Xew South Wales, which at £30 10/ showed a 10/ rise. There was a steady demand f®r ■' and A s at £5 4/, but holders were wide at £5 15/, apparently anticipating the announcement of an interim dividend published yesterday. Insurances Steady. There was little change in Insurances, though Xew Zealands, in the only recorded business, showed at 33/ a further drop of 3d. Fixed Term Securities. There was a regular market for most classes of Government stocks, but buyers were not particularly keen and the moderate business put through was virtually at late rates, with little allowance for flesh accrued interest. The announcement of' a Government internal loan has been expected for some time and until this takes place the demand for existing issues is likely to be prejudically affected. In this connection the assurance of the Prime Minister that a compulsory loan has not been considered by the Cabinet has been well received. Mining. Outside mining scrip had regular v bidmany sales resulted. Marthas were a little easier, with sales from 12/ to 11/10, while Emperors, fortified by a fresh dividend announcement advanced by 9d to 9/6. Australian Issues. Increased firmness in Australian industrials was a chief feature of the week's trading. Practically all the leaders advanced in price. Broken Hills moved up to 62/. British Tobaccos to 51/6. Dunlops to 22/. Mount L.vells to 28/ and Tooths to 57/3. Buyers rose to £49 5/ for Colonial Sugars, to 48/9 for Electro- I lytic Zinc ordinary, and to 52/3 for the pretcired, without leading to business. Chain stores also gained ground, Woolworths (Sydney) with sales from 23/ to 24/4, and G. J. Coles from 85/ to 85/6. TREND OP MARKET. The following table indicates the I fluctuations in the values of various securities:— 1938.. 193 V 1939. Jan. 27 April 21. April 28. ' - £ s. d. £. s. d. £ s. d. A'asia ..9 15 0 9 7 6 9 7 6 i Commercial 0 16 0 0 16 2 0 16 3 E., S. & A. 5 2 6 5 5 6 5 0 6 1 Nat., X.Z. .263 270 266 Xaf.. A list. 6 15 0 6 12 6 6 12 6 X.S.W. .. rill 12 (1 30 II 0 30 10 IJ X. '/<>,,!,) ml 1 IS <; 1 17 s 1 J 7 0 Liiiuu S 12 0 *8 4 0 *8 0 0

MISCELLANEOUS. ! £ s. d. £. s. d. £ s. d. X.Z. Insur. 2 14 9 2 13 3 2 13 0 S. British 2 3 5 2 5 3 *2 4 6 (iolds ,M. .1 9 0 1 9 0 1 9 0 Brit. Tob. 2 8 6 2 10 3 2 11 6 Broken H. 2 16 9 3 0 6 3 1 9 Elec. Zinc 2 5 6 2 7 6 2 9 0 (pref.) 2 9 6 2 11 6 2 12 6 Aust. Con. 5 10 O 1 12 6 1 15 6 Mt. Lyell .160 170 180 Col. Sugar 47 5 O 48 10 0 49 10 0 Auck. Gas 0 19 O 0 15 9 0 15 0 Wilsons C. 016 0 016 4 016 6 X.Z. Brew. 2 10 117 9 117 3 Do ill. Brew. 1 12 0 189 18 9 Farmers' Td 018 4 018 0 018 3 GOVERNMENT STOCK. £ s. d. £. s. d. £ s. d. 19.>2-55 ..99 O O 98 15 O 98 12 6 1934-46 .. 99 10 O 98 lO O 98 12 6 1!»o3-o7 . . 91 10 0 91 10 0 91 10 0 •Nominal. LATEST SALES. Sales since last review have been as follows: — Banks.—New Zealand, £1 17/6. £1 17/ (2j; New South Wales, £30 10/ (2). Insurances.—New Zealand, £2 13/ (2). Government, etc.—Bonds, 15/2/43-46, 4 per cent, £98 12/6. Stock, 15/4/46-49, 4 per cent, £97 5/, £97 10/; 15/6/52-5.-), 4 per cent, £98 15/, £98 10/ (2), £98 12/6 ); September, 39-43, 3% per cent, £98 //t>: City of Auckland, 1/7/65, 3% per cent, £85 10/, 1/1/44-52, 4 J /i per cent, £100 15/ (2); Devonport Borough Council. 1/8/56, 'SVs (per cent, £90 10/; Wellington Harbour Board, 30/6/43, 4M pei- cent, £100 15/. Mining.—Big River, 6d; Martha, 12/, 11/10; Waihi, 7/6; Broken Hill, South, £1 8/9; Emperor, 9/6. Australian, etc.—Australian Iron and .Steel, pref., £1 9/5; British Tobacco, £2 11 (i 13). £2 11/. £2 11/6; Broken Hill Proprietary, £3 1/, £3 1/6, £3 1/0, £3 2/ (4); new issue, fully paid, £3 1/6; Consolidated Industries, £1 15/6; Dunlop Per. £1 2/; G. J. Coles, £4 5/ (2|. £4 5, 6. £4 5/. £4 6/ (special parcel), £4 56; Morris Hedstrom, £1 7/; Mount L.vell, £1 8/ (2); Tooths Breweries, £2 17 3; Woolworths (Svdney), £1 3/, £1 3/3; £1 3/9, £1 4/4 '(2). Dominion.—Auckland Gas, 15/; Bycroft, £1 18/; Consolidated Brick, 8/10 (2); Dental and Medical, 12/; Dominion Breweries, £1 8/9; Farmers' Fertiliser, 16,/; Farmers' Trading, 18/ (2); B pref., 19,/; Loyland O'Brien, 18/; M.K. Manufacturers, 5/; National Timber, 7/; \Z Breweries. £1 17/3; N.Z. Newspapers, £1 10' (2); Pukemiro Coal, 16/6; Peters Ice. £1; Reid Rubber, right®, 7/; Rotolti Timber, 3/3 (2); Taringamutu Timber, 13 9; Traders' Finance (con.), 3/6 (3) ■ Wcstport Stockton, pref., 7/1; Wilsons Cement. 16/6; Woolworths (N.Z.). 17/8; Associated Motorists, £15/; Whakatane Paper, pref., 8,'3.