COMMERCIAL.

Press, Volume LVII, Issue 17293, 3 November 1921, Page 8

COMMERCIAL.

A BRIGHTER OUTLOOK. ▲ CHEEKING STATEMENT. C A cheering statement as to the cutlook for primary production interests in New Zealand was made by Mr G. D. Greenwood, chairman of directors of the North Canterbury Freezing Company at the annual meeting of the company yesterday. "I think" he said, "that the financial stringency that has beset the farming j community for the last year is gradually | passing away. There are several reasons I couid give for this opinion. The latest j one is a notification from tho Prime Minister which appeared in this morning's paper that he is inclined to make % rebate of ten per cent on the land tax. rhat is a very hopeful sign. There has been a good deal of pessimism with regard to tho outlook for New Zealand, but the Premier has, I think, not unwisely sounded a note of optimism which will be an encouragement and a good thing for the whole community. We have before passed through times of even greater stress than the ones wo are now passing through. T remember Helling at Amberley many years ago 1000 sheep at 9d per head. We have not got down to that bedrock yet. Another hopeful sign that the period of stress is gradually passing is to be found in the fact that whereas our 4} per cent, bonds free of income tax were four or five months ago quoted below £BO, to-day they are- selling at £BB, Tba't is a very big advance considering the short period covered. Another liopeful sign is the extraordinary rise that has taken place in the wool market during the last six or eight months, i Twelve months ago wool in the North Island was practically unsaleable, to-day there is not only a fair market for that wool, but an excellent market for merino and crossbred wool, which is. grown in this district. We have a public and private debt to-day of 434 millions, and the annual interest on that is something like 21 millions. Our exports in 1914 were valued at 24 millions, while in 1921 they were valued at 50 millions, a marvellous increase. : I am not gping to pretend that that enormous increase is going to continue in the same ratio in tho future, but those figures show we have a very considerable balance from our exports in excess of the interest we have to pay. It was quoted the other dav that Great Britain is taxed to the extent fit £24 per head, the New Zealand taxation being £lB, and that of New South Wales £l2. I was very much surprised myself to learn that England-was taxed to that extent. With' our own taxation of £lB per head,- it must be realised that there is only one coursa to be adopted to drive awav the period of bad trade that has settled on the country, and that is the cost of pro- " diiction must be reduced. Everybody in the community must increase.production, and must Realise that 'the whole community has been intoxicated with the successes of the war years. We must realise that that intoxication must be put sn one' side, and that the only way to sejuro relief is by working and increasing our production. If our fanners and graziers will realise* this, I have no hesitation in saying that this depression will pass and there will be brighter smes ahead." j PRICE OF PETROL. MR WXLFOBD'S DEALINGS. . ' " X - DISCUSSION IN THE HOUSE. ' ' \ (special to "the press.'/) - WELIiiNGTON, November 2. "The leader of a section of this opposition has informed the House that he. has been, able to import petrol at a cost of'to 22s per case,'.' said Mr J. Vigor-Brown in the House of Representatives to-day. The reference was to seme information placed before the x Houße by the liberal Leader (Mr T. M. - Wilford) last session, cMr Brown asked if the <Board of Trade, would take action'against the people who were charging about.3os a case for petrol at the > preefent time; . ■' • Tie Minister of Industries and Uonititerce (the' Hon. E. P. Lee) replied that the, Board-of Trade's investigations had . shown .that petrol could -not be imptirted in quantities at the p"rice mentioned by the member for Napier. The im-■'-porters'bf-petrol were'not making an ' undue profit. ■ , Mr Wilford: I have just imported ■'■■ V ' Another twenty cases, cheaper still. Later in the afternoon Mr Wilford raised the again. He - asked ,*iFthose responsible for the supply of '' tetrtl 'to this country had made any enquiry outside Three" who controlled petrol prices in New Zealand. He suggested that inquiries should .ba. made among the companies ~ that were, not subsidiaries of the Stan- \ dafrd Oil Co., the Petroleum Products Co., or the Shell.Company. He was .... 'importing >his own petrol; and would -- ' continue''to do-so. -He did not go to the; "Big 'Three." . The last' twenty cases' Had cost him £22- 12s 6d, and; he Vhad paid all the. usual charges, including- whaffagei; Customs duty,'primage, ' freight, and insurance. He had bought ' ' "the petrol retail overseas r.nd he had ,buffered, from the ad\oise exchange. ■ Mr Lee: .1 cannot imagine for one " moment .that the merchants of this . country tfho are' purchasing petrol and • • have heardfrom tune .to time the statements bf .tho hon. gentlemen are not , wither enough awake to take advantage of a cheaper' market tf it is 'available. " ' Mr Wilford :' They buy : cheaper than I aoj they buy'wholesale. ■ * Mr Lee: They do not make an undue ■ .profit. . * Liberal members dissented from this statement, and Mr Glenn interjected that petrbl could not -be bought "under 29s : a case at "present. I Mr Lee:" The Board of Tradei's in- • veatigations show ■ that the petrol sbld by- these merchants-is not sold at an unreasonable profit. Mr Wilford: M know- it is. Mr/Lee : Then the burden of your , complaint is not that they do not pur- . chase it cheap in America'but that they make an_ undue nrofit in New Zealand. Mr Wilford They are too clever to •let you-know it. ■ Mr Lee suggested that the purchase ■of pi few cases was a different matter . 'from the purchase of large consignments. If Mr wilford could buy on v such good terms, it was strange that he ...didnot let his friends share tne benefit. Mr.Wilford: I could go to America aAd arrange to sell petrol here at 10s a [ case below the present price. i: ®r D. Jones: Then why do you waste your tune here?_' (La^hter.) The Minister and Mr Wilford did not pursue the subject any further. : v fc . ■ • ~ BISE IN COTTON TTiyPTr.-gg ' . (Riuter'i Ttlegruna.) ■"■■■ L LONDON, October 31. ' Reports recently circulated by observer's','ofthe markets thdt textile .. prices; particularly cotton, hasl reached bottom,. ioreshadoWing a ■ firming ten* areVsupported by. the revised liat issued by Horrockaes, Qrewd•j -Bon, Ltd., showing a 10 per cent, ini crease .for cotton cloths as compared with prices on August Ist.

COMPANY TAXATION. A PROTEST. * I A protest against the largo levy of taxation imposed on trading companies was voiced by Mr J. H. Blackwell at I the annual meeting of tftie North Canterbury Freezing Company yesterday. Mr BlacEwell said that the previous • year's balanoe-sheet disclosed a credit to profit and loss of £28,000. During the year just past the company had to pay £19,000 by way of income tax. That meant that two-thirds of the previous year's profit had gone in income tax. On the.basis of that year's dividend it meant that for every £1 received by a shareholder by way of dividend the* Government this year oollected £2 ss. On the basis of the present year's dividend it meant that for every £1 paid to shareholders £3 15s went to the Government. The position was that companies were taxed as ono parson, and although the large majority of the shareholders may be men of moderate means, as was the case with his company, yet the maximum rate of taxation (had to be paid, 7s 6d in the £, now raised to 8e 9d. They knew, as reasonable men, that the Government had to have money, but there was room for difference of opinion as to the method in which that money might be raised. The figures he had cjuofed showed the great load that had to be carried by income-earning companies in New Zealand. If, instead of taxing everybody through the company as one individu.il. the individuals themselves wero taxed according to their income, inclusive of the dividends they received, then the rich man would be taxed at tho higher rate and the man of moderate means at a lower rate The present method meant that the companies had to carry n tremendous burden of taxation, which meant that at tlho end of the year the directors had to put before the shareholders a stated ment which did not show a reasonable net result for the year's working. THE FALL IN THE MARK. T,he cause of the further collapse in the German mark is not at all clear (writes the financial editor of the "Argus"). Before the war 20.43 marks were equal to £l, but now, instead of £IOO equalling roughly 2000 marks, 75,000 marks represent that sum for external trade purposes. The wav in which trade is affected by the fall in the buying price is shown by the fact that when the last series of wool sales ended a month ago about 6000 marks would buy a bale of wool. Now, on the latest quotation, it will take more than 11,000 marks. The collapse began upon the publication of the news respecting the fixing of the boundaries of Poland and Germany in Silesia, as the German leaders declared that the loss of territory assigned i to Poland would largely mean economic ruin to Germany. A declaration has also been mafie by financiers and manufacturers that the only way to defeat tho anti-dumping legislation of other countries was to depreciate the mark as low as possible, the idea.no douht being* that the value attaching to goods when exported-would be so low in the country receiving them that no-tariff could prevent their entry. All the while it was considered tliat Germany would biy a hive of industry, and so would end in gaining a commercial supremacy never imagined before the war. Boasting of this nature has led to the evolution of what iB termed the scheme of American valuation under the new, United States tariff. There duty is to be assessed on the, value of goods if they were being cold, or •Were being freely offered- in "America on the day or export, instead of the valuation being on the basis of their selling price in the country, of origin. Thus just as heavier armour begets heavier ordnance, so attempts to gain fiscal advantages lead to the adoption of protective measures- Apparently outside credits have been granted to German manufacturers to enable them to buy commodities, or there may be reparation, payments pending. The fact-seems evident that the mark has been sold on a huge scale to buy credits outside Germany for some reason or other; .The co£t"of' living lias -increased with the larger use of the printing press, so that a levelling up process between the price of commodities and the. currency machinery, is going on all the time, though not with equal rapidity, unfortunately for the worker. COLONIAL SUGAR COMPANY. A SATISFACTORY HALF-YEAB. (By Cttbla—Prew Association—Copyright.) (Anttraliin md N.2. C»bl« Association.) (Received November 2nd, 11.20 p.m.) SYDNEY, November 2. At the half-yearly meeting of the Col'onial Sugar Refining Company, -Ltd., the report showed that the total profit for the half-year was £206,200. It was resolved that a dividend of 15s per share be paid absorbing £121,875, and to place £50,000 to the reserve fund, increasing, it to £350,000, leaving a balance of £34,825 which, with £285,310 brought into tho account to' be carried out will make the surplus in the profit and loss account £319,635. In addition to the dividend of 15s, shareholders will receive a distribution of 5s a share from the New Zealand and Fiji Company. . The chairman, referring to the Fiji Company, said it had not yet been stated what were the intentions of the New Zealand Government about including a duty on sugar in the new tariff now coming before Parliament, but it seemed clear that refining could not be continued in. the Dominion under the free trade prevailing before 1914, owing to the increases in manufacturing expenses. / . THE WOOL MARKET. BJLWJSA. STOCKS. (Beater's Telegr»r->.) LONDON, October 31.' In the Houß3 of Commons, in reply to a anestion regarding Government wool holdings, Mr E. Hilton Young said that stocks were confined, under agreement, to the B.A.WJi.A. for realisation. These approximated at present 2,000,000 bales.- The disposal was proceeding as fast as possible. Over 275'000 bales had been sold since June 30th. Moreover, the B.A.WJR.A. would offer 200,000 bales before December 31st. He added that, at present, the market prices almost invariably ruled above the reserve prices. CHRISTCHTJBCH WOOL SALES. The Christchurch Woolbrokers' Association announce that the' Christchurchwool sales for the "1921-22 season will' be held on November 21st, December 15th, January 20th, and February 23rd. EGYPTIAN COTTON CBOP. CAIRO. November 1. The final figures to tne middle of the month show that the Egyptian cotton - .crop is the lowest yet recorded.