COMMERCIAL. THE BUTTER POSITION.

Press, Volume LVII, Issue 17170, 13 June 1921, Page 7

COMMERCIAL.

THE BUTTER POSITION.

BANK OF NEW ZEALAND. DETAILS OF BALANCE-SHEET. We give below full details of the balance-sheet of the Bank of Now Z>aknd for Ike year ending March 31-st last:— LIABILITIES AND ASSETS. Liabilities.—Capital: 5 per cent, guaranteed stock, £52;),958 10s Gd ; preference "A" fully paid £1 shares issued to the New Zealand Government, £500,000; preference "B" fully paid £1 issued to the New Zealand Government, £625,000; ordinary shi'.re? of £l, fully paid, £2,200,Cb0 —£3,901.9»rt 10s 6d. Reserve Fund, £1,37-5.000. Notes in circulation, £4,741,492 10s. Deposits, £34,475,655 3s 3d. Bills payable and oth-T liabilities (including provision for doubtful debts and for depreciation mi investment securities, also contingencies), £4,116,573 16s. Reserve for taxes, £426,000. .Balance of profit and loss, £726,900 16s 9d. Total, £49,766,610 16s 6d. Assets.—Coin and cash balances at bankers, £5,925,791 Os lid. Government Notes—Commonwealth, Fijian, and Samoan Administration, £190,990 ss. Notes of other banks (lepral tender), £564.061 10s. Bullion on hand and in transit, £4889 13s 3d. Money at call and ■short notice. Government securities and other securities in London, £6,114.822 15s Id; and bills receivable in London and in transit, £2,209,533 1i5£8.324,356 £8.324,356 6s Id. New 7,-nlnnd Government securities. £3,2?5.957 J"'; and mnnieinal securities. £987,114 10s —£3,513,102. Australian Government securities, £399.316 13s 4d. Bills discounted, £2.780.753 15s 6d. Other advances and reenritios and debts due to the bank, £27.725,874 17s Id. Lnn-Wl nropertv. pfe.. #387.468 ISs 4d. Total. £49,766.610 16s Gd. PROFIT AND LOSS. Dividend on £500,000 "A" preferance shares £20,000, dividend on £250,000 "B" preference shares 1 £18,750, bonus on "B'' preference shares £IO,OOO, dividend on ordinary share capital £75,000, bonus on ordinary share capital £40,000, amount transferred to reserve fund £150,000; in all £313,750; with, balance carried down £146,520 2s 3d, totalling £460,270 2s 3d. Twelve months' interest on guaranteed stock £21,199 10s lid. Amount written off bank premises and furniture £50,000. Interim dividend paid December 11th, IS-20: On "A'' preference shares (£500,000) £43,750, on "B" preference shares (£250,000) £21,875, on ordinary shares (£1,500,000), £131,250, in all £196,875; the_ balance being net profit for Year £777,255 14s 6d, to which is added the amount brought forward from last year £146,520 25., 3d, making £923.775, less in; terim dividend paid, as above, £196,875 —£726,900 16s 9d; totalling £994,975 7s Bd. i On the other side, the balance at March 31st, 1920, was £460,270 2s 3d, and the balance brought down £146,520 2s 3d. Profits for year ended March 31st, 1921, including recoveries, and after payment of, and provision for, all interest duo and accrued on deposits, provision for bad and doubtful debts, and other contingencies, for the annual donation to the Provident Fund, also for bonus to staff, amount to £1,844, 017. 2s 2d, less salaries and allowances at head office and 211 branches and > agencies £355,174 lis sd, directors' remuneration, including London Board £6650, general expenses, including rent, stationery, telegrams, postages, travel- 1 ling, repairs to premise's, etc., £145,905 .4a. lid,, audit expenses account £273: 0s lid, rates and taxes £485,094 19s 6d. in all £995,561 16s 9d. leaving net profit £848.455 5s sd, making the total £9*94,975 7s Bd. RESERVE FUND. The balance-sheet shows the amount transferred to capital account at. December 31st, 1920, in terms of 'section 4 of the Bank of New Zealand Act, 1920, to be £1,125,000, and the balance £1,525,000; total £2.650,000j including tlie amount of £l-50,000 to be added from profits from the year ended Marcli 31st, 1921:

"MISLEADING REMARKS." CASE FOE THE PRODUCER STATED IN DETAIL. In reply to a variety of assertions and assumptions I about butter, the ; secretary of the National Dairy Association (Mr T. C. Brash) makes the following statement-: Very misleading remarks have been inade by city politicians and other commentators "about "subsidy" and "parity price" in the butter business. Time after . time the truth has been published, but certain politicians and others prefer to stick to their own inaccurate notions and prejudices. I hesitate to impute deliberate misrepresentation against the unfair critics of butter-producers, but when a public man ignores the truth, and persists in a course of misrepresentation, he lays himself open to an accusation that he is more concerned with off-sido play for votes than with, a scrupulous. " regard for accuracy. In a zeal to please certain electors he does not) think of the wrong and mischief whioh he does by a one-eyed view of a case. This kind of conduct is very disappointing to those who are hoping for a high standard of accuracy in public statements made by public men. Much of the social and industrial trouble of +o-day is due to the wide publicity of Inaccurate, misleading matter. THE IMPERIAL PURCHASE. To begin at the beginning of the present position of butter, it is necessary to go back to the time of the Imperial Government's - purchase, which ended at March 3lst last. It was definitely understood that the Imperial Government was to take the whole of the available surplus of tho summer production. The dairying industry naturally strove tor a maximum of export at the price of 2s 6d f-o.b. When the question of supplies for tne local market during winter arose, an assurance was given that sufficient autumn and winter butter could be made for the local market. This production has been going on since April Ist, but, of course, the cost is much higher than it was for the summer make. a BONUS TO CONSUMERS. Prior to this year the price of butter has always been higher ill winter than in summer, 'ihis wjntjr the pror ducers are leceiving 4d less than they got in summer. The price of bulk butter at the factory door is now Is ll}d, which is increased to 2s l}d by the "subsidy" of 2d per lb. There is an impression that the "subsidy" is practically a bonus to the butt, r-producers. Actually it is a bonus to the consumers at the cost of the general taxpayers.The retail price would have been 2s od, but -has been kept at 2s 3d under an arrangement by which the Government pays 2d of the price that the consumer should be paying, and a removal of the Eo-c-alled "subsidy" would mean that the full retail price would be 2s sd. . The huge industrial trouble in England, *iy seriously curtailing the pur- : chasing power of the public, has natu-

rally affected tho price of butter, but, even with that severe depression, the retail price of New Zealand butter in England is at least 2s lid to-dny (swimmer pric.*). In pre-war years there has been a wider margin between tho winter retail price in New Zealand and the summer price in England. "SHEER NONSENSE." People who are crying "parity"' at tho butt, r producer to-day are. talking sheer nonsense, which the least thought should enable them to see clearly. They overlook the liugo fact that .vhen it is summer in New Zetland it is winter in England. When winter cheeks tlw production of butter in tho northern hemisphere New Zealand has a splendid opening for trade. "When production is at its greatest volum. 1 here, the price is at its highest point in England and other countries of the Northern Hemisphere. With these prices available for export, the producers who supply the local market expect naturally to be in a position of parity with exporters. A parity price is then necessary as' an obvious act of justice. When the seasons are reversed—when production is at its greatest volume during summer in the Northern Hemisphere—is is not a question of "export parity" in New Zealand for winter butter on tho local market, because export has etas d, yet the difference between the summe- and winter conditions of trade is persi'tevtly and foolishly ignored by the dairyman's critics. BUTTER PRODUCERS. It is a. fact beyond dispute that tho dairyman has been the last of the producers to get anything like a fair (eal. He is admittedly the hardest worker, but it has only been in recent years that the return from- his labour and self-denial has been worth whilo. He is now getting 4d per lb less than for the summer make. Why shou'.d he get still less? What good could be done to the community by injustice to tho butter producer ? It is well known that the sudden falls in wool and meat are causing unemployment in town and country. Why tr> to increase the unemployment ? t " It is acknowledged that the dairying' l industry has practically saved New Zealand from calamity this year. Why, then, malign the dairyman? Has he not done well for the community? Does lie not deserve Bome gratitude ? FREE MARKET AFTER AUGUST. Meanwhile the price received by the producer has been definitely fixed, bysigned contract with the Government till Augusu 31st. After that the producers will have a free market. # lf they had been on a free ma: ket during the term of tho two years' contract with tho Imperial Government, which expired on JuW 31st, 1920, they would nave been receiving 2s 9d per lb before the end of that period instead of the Is 7|d paid by the Imperial Government. During each of those two years the Imperial Government cleared a profit of about £2 000,000 on New Zealand butter and about £2,000,000 on New Zealand cheese, a total of about £8,000,000 for the two years. This New Zealand butter was allowed to be retailed on the British market at 3s 4d per lb. In conclusion, I must express a little surprise at one aspect •of the conference of representatives of employers and workers who met to discuss the cost of living, including butter and flour. I do not recognise in the personnel one delegate who could be regarded as conversant with the production side. How could such a conference arrive at a right estimate of prices of products without adequate knowledge of the cost 3 of production? SALE OF BTJTTEE. " Mr J. McCombs, M.P., has received the following lwttcr from tho Hon. W. Nosworthy, Minister of Agriculture, regarding the sale of tutter:— ■ During my visit to Christclrutch you enquired if it -was open to merchants to repurchase butter from the Imperial Government, niid I promised I would have enquiries made and advise you s« to the result. I have now to inform you that the Government has communicated with tho Imperial authorities in regard to this matter, and has been definitely informed that it Is not proposed to sell butter from. Imperial &t'<ek at a loss for local consumption in New Zealand. I would point out that the contract for tho sale of butter to the Imperial Government was for the exportable surynis, and the Imperial authorities qui+e reasonably take the,view that if any of the butter taken into stock in .New Zealand on am count'of the Imperial Government la no* required idr home consumption such IrofcUsr cannot be regarded a& "exportable surplus, and the Imperial Government snould be refunded any paymwtts made for same. BANK INTEREST RATE. ~-~"* COUNTY MAKES A PROTEST. Notification was received by the Waipukurau County . Council at its last meeting from the Bank of New Zealand that the council's application for an overdraft, up to £3OOO had been approved, the rate of interest being 7 per cent., states an exchange. The chairman (Mr A. C. Russell) did not know why tho banks were increasing the rate of interest by 1 per cent. He saw no reason why it snould be 'the County Clerk remarked, that the banks were flooded with applications for money, i ' . Cr Tansey: It doesn't matter; it is quite wrong. The ratepayers cannot pay it. Nothing is paying 7 per cent, at the present time. The chairman did not suppose it was any use protesting. Cr Tansey considered they should protest. Everyone was making sacririces in the present time of stress, and the banks were making the greatest profits. The people were the victims or circumstances, and should not be further penal sed. The chairman submitted a motion protesting against the banks increasing the rato of interest by 1 per cent, to local bodies, as it meant an increase on the people struggling for a bare existence, and the time was not opportune to impose such an increase. He pointed out that in the case of a trader the price of his commodity was under the supervision of a tribunal, but the banks could charge what interest they liked. ... Tho motion was carried, and it was decided to forward a copy to the Minister of Finance. AMERICAN TRADE OUTLOOK. (By Cable—Press Association—Copyright.) (Received Juno 12th, 3 5 p.m.) WASHINGTON, June 10. At tlhe semi-annual meeting of the United States Chamber of Commerce, it was reported that no immediate return to prosperity was in sight, and there was no need to be under any delusion about the resumption of business on a scale approaching or equalling the wartime volume, but a gradual improvement may be expected when th*. harvests are in. The cotton acreage has been unexpectedly reduced, but there is a trorcendous supply of wool at exceedingly low prices. Leading financiers had a second conference with President Harding at the White House, and- considered steps to assist the live stock industry. Mr Harding urged help through private cliannels, and the bankers will make a survey probably in the form of several corporations. The bankers also are understood to have given an assurance* that there will be no moie financial dealings with other countries wiuhout Government sanction. The conference is the foierunner of a great countrywide financial meeting to be held shortly. ENGLISH KA2EETS. LOXDOA', June 11. Cotton—Liverpool quotation, American, middling upland, July delivery, 8.31 d per lb. Eubber—Fine herd Para, lid B«r lb; PIan-

tation, first latex orepo Sid; smoked ribbed sheet, 7Jd. Copra—South Sea, bagged, June-Augußt shipment, £27 5s per ton. Jute—Tho market has an easier tendency. June-July shipment, £25 10s per ton. New Zealand hemp—June-August shipment, $39 per ton. Linseed oil—£3l 5s per ton, equal to 23 Bjd per gallon. Turpentine—74s per cwt, equal to 5s 7d per gallon. Froien meat—New Zealand ewes, 7|d; frozen fores, 4d; hinds, sjd; Australian hinds, 5Jd; Argentine fore*, 4{d; hinds, Sjd; Uruguayan fores, 3Jd; hinds, 6Jd; Argentine, chilled hinds, 9Jd. AUSTRALIAN STATE LOANS. ! LONDON", Juno 10. A joint loan, for fa.OOO.rno. of winch South Australia takes £3,000,000 and Tasmania fi1.000.000, ut 6J p#r cent., issued at par, and redeemable, in 1930-40, has been underwritten. LONDON WOOL SALES. (Received June 12th, 5 p.m.) LONDON, Juno 10. Ot the B.A.W.R.A. wool sales mil 'ate rates were obtained There was good competition, mainly German, for merinos. Yorkshire and the Continent were both active tor crossbreds. Practically the whole catalogue was sold. The committee of the Colonial Wool Merchants' Association adopted a resolution, "That tha interests of Australian growers and trade between Australia and England would be best served bv a roeoßni'ion of the fact that the first consideration should be the realisation of the current clip each year, and, subject to that realisation, as largo a, quantity of B.A.W.R.A. as the market is able to nbsorb ought to bo offered. The committee thinks the quantities offered in tugust and September should contain a larger ptoportion of new clip than hitherto provided." The Department of Agriculture has received the following eabWrnm, HnW Bth instant, from the High Commissioner for; No>" Zs;il-nid. London"Wool sales commenced yesterday with, o catalogue comprising 0500 boles Australian, MOO bales New Zealand, 2200 bales South American, all free wool. Attendance largo and competition was animated, especially from Continent. Practically all sold. I'ric* for finer merinos on average Id higher, and fine crossbreds Jd higher than closing rates last sales. Other descriptions firm at that level. First "8.A.W.R.A." sales to■J*y. This week's "8.A.W.R.A." offerings will consist of .—Australian: Merino, greasy 8800 bales, scoured 4400 bales; crossbred, greasy 3800 bales, scoured 1250 bales. New Zealand. Crossbred, greasy 180 bales, fcoutod 900 bales, slipe 600 bales; reconditioned, 500 bales." SHARES. LONDON, June- 10. Waihi Graryd Junction, 9s lOd. FROZEN MEAT. Dalgcty and Company, Limited, have received the following cablegram from their London office, dated June 9th, 1921: "Frozen meat market weak. Any oha-ngo in prices is in favour of' buyers. In v-'ew of congested stores and heavy quantity arrivals :i nd afloat yet to be marketed, lik-'v to be a fall in. prices in frozen mutton and lamb, DUTCH OILFIELDS. (Received June 12th, 11.50 p.m.)WASHINGTON, Juno 11. The State Department has published a Note in reply to the Dutch Government that America refuses to recognise the contention of Holland that American interests applied too late for permission to participate in the exploitation of the Djambi oilfields, Sumatra. THE FEUIT CROP. PRESENT CONDITIONS REVIEWED. The DirectcT of the Hortieultur* Hi-vision of the Department of Agriculture has received the following reports from his officers regarding tho, conditions of tho fruit crop at the end of May:— Nelsoii.—Apples: The harvesting of this crop is completed with the gathering of the Rokewoods and Dougherty. Pears: The harvesting of this crop- is now coraplefod. The bountiful crop of 1920 has been followed jby a fair Average crop of pip fruit this season. The plum crop also lias been fair, peaches, ntctainnes, and apricots have been e-joceptlonally light. Motueka.—AH fruit gathered and stored Approximately 55,000 cases of apples arid 2000 cases ot pears are held in cool store, besides some thousands of coses held in storage at individual packing sheds which it ia difficult to estimate. Hegular eup» plies are being sent forward to .narkets. Marlborough.—All fruit is now harvested and- lot the main part marketed, though •ima few growers are iholdmg late vtlrietfe* in anticipation of higher prices. ; ;• Canterbury .—Apples: Ffuit practically all harvested: ; quality good. Crop was a fair average one. Very free from black spot. Approximately. P<> ooo cases . in . 6t0 , r ?8*,Pears: All harvested. .Very free from black spot. Prices low. Approximately 9000 coses in storage. Walnuts: A good crop. Nats all harvested. Prices only (»»._ ,' South Canterbury.—With the eorcep'aon of a, iew Stumers, all fruit is now hiuvested. Dry -weather alill oonliira«», and gieoncropfl planted in orchards are making very little headway. < • AUCKLAND CITY PROPERTY SALE. (PEES 3 ASBOCUXIOK TBLtSOBAM.) AUCKLAND, June 11. A three-atoreyed building in Queen street, including the Hippodrome Theatre, with a 83ft frontage and 190 ft djeep, has been, bought by Lewis R, Eady and Co.. for £42,000, ce £1272 a foot. LEESTON SALE. There were exceptionally small entries of stock at the Leeston stock sale on Friday. Fat pige brought rather better r»-.es thah those talftg at Addington OT ><.dhesday. Store pigealeo improved, ■lightly as » pared with the value* rulm« the previous eale day. The sheep sales were:—42 fat lambs 18», 10 fat lamb* 17a Ed, 4Q merino ewes 6s lid. Bacon pigs brought i« 2« to £5 14b 6d, choppers £6, porkers from £3 6s, large stores 18s to 425, small from 10s. Springers made to £lO 10», store oovm SA XOs, cow and calf £2 I2s 6d SHOBTACtK OP CROCKER*". , Information received by • a leading- Wellington merchant is to the effect that it is practically impossible to obtain lines of crockery from English manufacturers. This state of affairs is due, it ia eaid, to the coal miners' strike, and the absence of material with which to manufacture the various articles required. There were no stocks available at the end of April, and so far there ia no likelihood of any reaching the , Dominion for a considerable period. SATURDAY'S POULTRY MARKET. Messrs J. B. Merrett and Co. had a large entry of poultry on Saturday. There wasi a good demand and prices were high. Table chickens realised 6» fid to 18s 9d, hens 8s 6d to 9s 10d, pullets 4s 6d to 18s 6d, ducks 5» to 12s 9d, geese 8s to lte, turkeys 18s 6d to 54s 6d, all per pair. At an auction s»le in the Christchurch fhow prices realised from £-2 2s up ta £5 6s peT bird. EGG MARKET. Eggs have come forward much more freely during, the past week, nearly double the listings having taken place. Prices have eased considerably. Canterbury Egg Circle eggs from Wednesday's listings realised 2s 9d first grades, 2s 7d seconds, and ducks 2s 9d, all per dozen. ' DUNEDIN STOCK EXCHANGE. (I-Ktsa ASSOCIATION TULEUtAH.) DUNEDIN, June 11. Bales on 'Change-.—New Zealand Refrigerating (cont.), 16s 7d; New Zealand Paper Mills, 24s 9d; Now Zealand Government Wax Bonds (1938), £B2 12s 6d, £B2 15s.