COMMERCIAL.

Press, Volume LXI, Issue 18303, 10 February 1925, Page 10

COMMERCIAL.

WHEAT AND FLOUR. X)EARER LOAF LOOMING. RISE OF Id EXPECTED. (SPECIAL TO *fHE PRESS.") AUCKLAND, February 9. The Government's embargo on the importation of wheat for milling purposes will terminate at the end of this month. The influence of the proposed , duty will- in all probability l>e made manifest from March Ist onward. A prominent Auckland miller, discussing its effect on _ the _• local price of flour, ppihted out that the price in ' Sydney to-day was £l6 per ton. Im- • portations of flour pev ton would be liable to the increased duty of £3. Freight charges amounted to about 30s, 1 exchange 10s, and primago 3s Id, together with insurance charges, thus the cost of Australian flour landed in Auckland would be approximately £2l 10s, to which must be added local profits and charges for cartage and storage. • The price of Australian flour sold in i Auckland would, with these extra allowances, roach the vicinity of £22 ss, and New Zealand flour, which the November price fixed at £l7 ss, would • be bound to rise in sympathy. The amount of the rise would thus be £5 per ton, which would work out at about Id on the 41b loaf. The increase was not likely to be any less, he said, though it would naturally depend also on other conditions as, for instance, the demand in Britain, the Continent and ; America. The possibility of a penny increase on ' the large loaf seemed to be pretty well 'accepted in other quarters, and the opinion was expressed that the increase would in all likelihood take effect from March Ist. It is pointed out that current conditions in Australia favour a tendency to tlie export to New Zealand of flour .rather than -wheat. The price of wheat in Australia is 7s 3d per bushel f.o.b. sacks in, to which must be added duty, freight and other charges, amounting in all to about 2s 3d. The landed cost in Auckland would thus he approximately 9s 6d per bushel, at which price it would not be possible for local mills to convert it into flour at less "than £23 or £24 per ton. As this would mean a decided advantage in favour of flour imported direct from Australia • and sold here at £22 5s per ton, there would be no inducement to import v wheat. This condition would ,at least prevail until all Australian flour manufactured from last season's cheaper crpp t was exhausted, though the tendency al-

fJ; ways remains for surplus stocks to He --'■ sold at a lower price for export, if'! The millers point out that it is im- , ; possible to sell their product , against ■ low-priced Australian flour. Influences which may relieve the position to a cer- > tain extent are referred to by local ■ millers. Lower world prices, for in- , stance, are expected when wheat grown in the Northern Hemisphere starts to ' enter the world market about June. It 1 is also stated that Australian flour has the reputation of making more loaves ; to the bag than Canterbury wlfeaf. WHEAT SUPPLIES. TRUSTS AND COMBINES. ' ■ „ fß* CABLE—PRESS. ASSOCIATION—COFniIGHT.) (AUSTRALIAN ' JJTD K.Z. CABLE ASSOCIATION.) f . LONDON, February 8. i. Tha,"Mornmg Post's" market correspondent, reviewing the recent wheat ( bull raid, and recalling famous at- : tompted corners, says that early in 1922 Canadi&n and Chicago trusts agreed to , hold up- wheat to prevent Europe play- „ ing one against the other. Australian delegations went to America in an endeavour to arrange a Canadian-Austra-lian-Americanwheat-holding ring. The scheme broke down as far as Australia was concerned, but America and Can- ' ada pushed up the prices to a hundred shillings before the Argentine broke the ring. ■ The paper adds that Australia to-day has a unique surplus of fourteen million quarters, but it must be noted that <a great political effort is being made before the harvest not only to form a ; • wheatijholding trust, but to secure Government backing for it in order to be ! able to hold on almost indefinitely, and < drive up prices to the scarcity level in r . Britain. -

TRADE REVIVAL. } BIG DEMAND FOR TONNAGE. February 8. • The ''Daily Express".says that there • as justification for the'claim that there i' is a definite trade revival. <> The paper alludes to the exceptional demand of tonnage for Australian t wheat, of which 50 steamers, aggregating 400,000 tons,, were booked in a recent week. The " Express" points out that the iL diversion of tonnage from the Atlantic to Australia is likely to afifect rates of freight for the new Argentine crop. |. ( . [permanent investment ASSOCIATION. „ ANNUAL MEETING. ' i : The. annual meeting of members and. jtehareholders of the -Permanent- Investment' and Loan Association of Canterbury was held yesterday, the chairman, Mr H. H. .Pitman, presiding:. The annual report stated that after pay-'-ment of the usual dividend-of G per cent. ~ior the year there remained at credit' of "profit- andlosa account (including the balance brought forward from last year) the ..Bum of £1695 ISs 7d to be carried forward. The ch&iinuu, in moving thfi adoption of the: report-and.-balance-sheet,■ stated 'that the' ' mortgages showed an increase during the ■year of about £7OOO, and tfcare waß a cor . responding increase in deposit liability. The •Association's operations were still hampered iby the provisions of the Moratorium Act. ■Not only were some of the mortgages still tied up, but in compliance with the provisions of the Mortgages Final Ertension Act of last session, the Association had •lad to reduce interest to 6 per cent, per 'annum on all mortgages, which under the ..old Act had been running on overdue at 6-J per oent. The Association had sold the 5$ per cent, stock taken np during the . "war at a small loss (which had been written off), and re-invested the money in loans on mortgage at a higher rate of interest. . The Board had made the usual examination ®f the Association's business and securities and was satisfied that all the securities were perfectly satisfactory. . . Mr P. I. Ctrwlishaw seconded t-he motion, ; /"which was carried. —' The retiring directors, Messrs H. H. Pitman and George Jameson, were re-elected. Messrs S. W; Jameson and J. B. Beckett - iwere reappointed auditors - for the ensuing par. : >A vote of thanks was accorded the direc■pota and staff.