FINANCE AND COMMERCE.

Press, Volume LXV, Issue 19668, 11 July 1929, Page 10

FINANCE AND COMMERCE.

GOVERNMENT TRADING

AN AUCKLAND PROTEST, [THE PRESS Special Service.] AUCKLAND, July 10. Government trading was referred to by Mr H. T. Mcrritt, president of the Auckland Chamber of Commerce, at a conference of representatives of the seventeen Chambers in the Auckland district. The ideal of trading without permit was admirable in theory, he said, but in practice it had proved unworkable. As an instance, they hart onlv to turn to the position ot the Government in the operation of tlse railways, over whh-h a deficit of mors than three-quarters of a million had been shown during the course ol the last year. Then: had also been the Government ex'wri nvcnt in timber mills at Frankton. which had resulted in a disastrous loss, If the work inns of every t.overnBient Department, which had engaged in trading ventures could no disclosed, said Mr Mem t, it was probable an equally disastrous position would be revealed. The cost ol' all those ventures had to bo provided hv the taxpayers. It was sincerely to Ixi hoped that further excursions in- the Government into business ventures would be prevented by the pressure of public opinion. CITY HOTEL.

LICENSE SOLD. Several reports regarding the intentions of the trustees in the Wilson Estate with respect to the City Hotel, situated on part of the triangle, Colombo, High, and Cashel streets were mentioned bv a reporter to Mr A C. Wilson, representative of the trustees, Who cave details ».f what is proposed. The license of the City Hotel, Mr Wilson said, has been sold for transference, the purchasers beincr Messrs Ballin Bros., who have three or four sites in view for the promises to which the license is to Tkj transferred. There is no present intention of rebuilding; the present building, it is considered, is good for quite a number of years yet. All the ground floor will be reconstructed for the purposes of shops. The tipper storey will ho devoted to ten rooms—one of the largest in the City. _ The present lea h c of the City Hotel lias about ten mouths to run before it expires. LAND SETTLEMENT. RETURNED SOLDIERS' CLAIMS. [THE PRESS Special Service.] DUNEDIN, July 10. "We still maintain that the promise ©f the Government and the public of New Zealand on land settlement before the men went to the front has not been carried out," declared Mr H. L. Paterson (president of the Dunedin Returned Soldiers' Association) to the Otago Land Board this afternoon. The Association asked that preference ahould be given to returned soldiers in tli* subdivision of the Benmore afforestation area of 12,000 acres, which is being made into three or four grazing TO" 8 - . ~ "I XU The Board promised to forward the representations to Wellington. LONDON WOOL SALES. POOR SELECTION OFFERED. (cams rasas association— by blbctwc T3SUSQBAFH—COPIBIGHT.) LONDON, July 9. At the London wool sales 9493 bales were offered, of which 2553 were New Zealand. It was a wretched selection of all sorts except slipes, which were fairly Rood. The attendance was large, all sections being, represented. The Home trade did most of the bidding French biddin* being reserved Tnere were con•iderable withdrawals for poor sorts. Prices compared with the May closing rates were:—Merinos, good. 5 per cent, lower: shabby and faulty ,4 to 10 per cent, lower; crossbreds. nne and medium, 7J per cent, lower: low par to 5 per cent, lower; shpes fine and medium. 10 per cent lower; low. Ear to 5 per cent, lower; lambs, crossr*ds. about 5 per cent, lower. New Zealand Mines; 1 .B. s, Canterbury, halfbrcd SOid: three-quarter 181 - C.M.C. Eclipse Triancle, haltbred 221 d; three-quarter, 201 d.

Dalgety and Company, Ltd., have received the following cablegram from their London •Sice, da*«d July 9th:--Wool sales opened with a large attend.arico of buyers. Selection of wool poor, mainly slipes. Competition irregular but lairly animated. Ae compared with closing latea of last series, merino 7J per cent, lower, fine crossbred 71 per cent, lower, medium and ooarae crossbred 5 to 7J per cent, lower, combing slip" 10 per cent, lower, and clothing alipe 5 p»r cent, lower. Pyne, Gould, Guinness, Ltd., have received the following cablegram from London, dated tho 3th inst. :—The wool sales opened *o a large attendance of buyer*, but the bidding waß slack. As compared with the May eales, prices for merino and cross were from 5 per cent, to 74 per cent, lower. Tho New Zealand Farmers' Co-operative Association have received the following cablegram from their London office:—Wool sales opened to-day, and prices compared with last London series are as follows: Coarse croashreds 5 per cent, down, others 5 to 71 per cent. down. Large attendance; competition dull. The Now Zealand Loan and Mercantile Agency Company, Ltd., have received the following cablegram from London, under date 9th instant:—There waa a fair attendance at tho opening of the sales to-day, eonpotition by Home and Continental buyers fceing slow and prices, as compared with the cloae of the preceding series, ruled about 10 per cent, lowei for f<ne wools, 5 to 7* per cent, for medium coarse crossbred slipe combing, greasy crossbred, and merino, 5 per cent, for crossbred slipe clothing: wools. Tho National Mortgage and Agency Company of N.Z., Ltd., havo received the following cablegram from their London office: | The auctions opened here to-day, with a larga attendance of buyers. Moderate competition. Bradford reserved. Compared with closing rad-8 of last sale's we quote: Greasy merino, best. Id to IJd lower; greasy merino, average. Id: to ljd lower; halfbreds, 50-56, Id to ljd lower: crossbred?. 43-50, Jd to Id lower; crossbreds. 48-18, id to Id lower; erossbreds, J4-40. Jd lower; jd lower; croesbreds, [56-40, Jjd lower; fine ■lines, medium slipes, and combing, 10 per cent.; coarse slipes and combing, 5 per rent.: Rlipea. clothing, 5 per cent.; scoured crossbred. 10 per cent.: scoured merino. 5 per cent, to 7| per cent.; all cheaper. The Bank of New Zealand has received the followintr advice from its London office,Under date Pth inst. :—The wool eales have opened, with moderate compotit r on and largo attendance of buvers. Compared with the cVsing rates of last series, merinos and finf crossbred"! are Id to lid lower, medium and coarse enwsbreds Id lower. COLOMBO TEA AUCTION. (PRESS ASSOCIATION THLKOBAM.) DUNKDIN, July 10. At Tuesday's auction in Colombo 2,990,0001b ■were offered. The commonest kinds -were steady. The market for low and medium was strons, and other grades advanced two to four cents. Next week's' Mtalofftiea will total 3,030,0001b.

NEW DAIRY SCHEME.

"EMPIRE DAIRIES, LTD." AUSTRALIAN-N.Z. UNION. A union of Australian and New Zealand dairy produce export interests is at present being finalised under a scheme which will represent an important development of co-operative marketing. Eeference was made to the subject in an Auckland telegram, the other day. It is said that the proposal may be extended later to Canada and South Africa. In announcing the details of the scheme, Mr W. Goodfellow, managing director of Amalgamated Dairies, Ltd., says that Britain's dependence, during the winter, on the Southern Hemisphere, has encouraged co-operative forces in New Zealand and Australia to coma together in the selling arena for economic reasons. The early establishment of an Empire Marketing Company, he remarked, was destined to become an important factor in the marketing of butter and cheese in Britain. Encouraged by the success of the Overseas Farmers' Co-operative Federations, Limited, established in 1920, important manufacturers in New Zealand had decided to join with fellow-pro-ducers and establish an Empire selling floor for the dairy produce of Australia and New Zealand. Butter will be produced and distributed in special pats, preserving identity and establishing quality under a "one brand" idea for each country. Big Saving Expected. The policy of Emprie Dairies, as the new company will be called, is one of direct consignment, the control of which, in Britain, will be in the hands of Messrs J. B. Wright and A. E. Gough, directors. It is expected that there will be considerable saving of overhead expenses, besides the advantages to be gained by concentration of selling forces. As the scheme is purely co-operative, all profits, apart from a limited interest on capita), will be returned to each country. "The agreement is between the Australian Producers' Wholesale Co-opera-tive Federation and Amalgamated Dairies, Limited," Mr Goodfellow said. "The new company —Empire Dairies, Limited—will be a co-operative venture for the marketing of dairy produce from all Empire countries." The Amalgamated Dairies, Limited, would hold a substantial financial interest in this company, and would at't as agents for New Zealand, he added. Likewise, the Producers' Wholesale Cooperative Federation of Australia would represent Australia, while shares would be reserved for Canada and South Africa. Distribution Plan. Amalgamated Dairies, Limited, would utilise Empire Dairies as well as the existing Tooley street firms employed by the company, to distribute produce in the United Kingdom. It was a matter of vital importance to the producers of both Australia and New Zealand that all unnecessary competition in the selling of dairy produce should be eliminated and that the two countries should combine in the United Kingdom for the Belling of their produce. Empire Dairies would commence operations in London on October Ist next, the European operations being controlled by Messrs Wright and Gough. There would also be two directors appointed by the Australian Producers' Wholesale Co-operative Federation, and a further two by Amalgamated Dairies, Ltd., of New Zealand. The chairman would be elected alternatively by the Australian and New Zealand interests. Empire Dairies, Ltd., would accept consignments of Empire dairy produce only, and would help to stimulate the demand for a large and growing section of the British people for free trade within the Empire. In the meantime a change is to be made in the policy of Amalgamated Dairies. Altered Policy. Mr Goodfellow said that on account of the Australian agreement, the directors of the New Zealand Co-- perative Dairy Company, Ltd., and Amalgamated Dairies, Ltd., after conferring with Mr Grounds, (late chairman of the Control Board) had decided to at once make some very important alterations in the policy of the latter company. In the first place a dairy council would be provided for, to consist of the chairman of all companies entrusting produce for sale to the care of Amalgamated Dairies, Ltd. This council would meet in Wellington, or some other central place annually, or at any time in case of a crisis, and would, in addition to considering market problems, nominate three directors to the Board of Amalgamated Dairies, Limited. Two of such directors would represent the North Island dairy factories and one would represent the South Island. Meetings would be held within the next week or two upon request at suitable centres in the North Island, with the object of giving the directors of the co-operative dairy companies the fullest possible information regarding the new scheme. MORTALITY IN HOGGETS. (press association tzixgbau.) MASTEBTON, July 10. At the meeting of the Wairarapa Provincial Executive of the Farmers' Union to-day a motion was passed that the Department of Scientific and Industrial Eesearch be asked to arrange for a mass attack by scientists on the most important problem of mortality in hoggets. A recommendation was also made to the Department of Agriculture that the compilation of pastoral statistics be overhauled and rearranged to make them of more use to rhe farming community. TARANAKI OIL FIELDS. (rEESS ASSOCIATION TELEGEAM.) GISBORNE, July 10. Taranoki Oil Fields, Ltd., report as follows:'— Gisborne No. 2 Well.—The Board of Directors anticipates that, failing some unforeseen cause of delay affecting the manufacture or delivery of the rotary drilling plant now on order, end subject to the weather conditions, as they affect transport in New Zealand, the resumption of drilling on the Gisborn« No. 2 well at Manjraone _ should be possible- early in November of this year. Grain growers. "Red River" Special Threshers represent the finest threshing machines procurable, and have features which hare established them as the finest, fastest, and clean est threshers. If you are experiencing difficulty in arranging for machines to do your work, we have still a machine available for you for immediate delivery. We should be happy to post you "the latest "Red River" Catalogue, illustrating fully this up-to-date machine, Andrew* and Beaven Christen urch. -1

MONTHLY REVIEW. The Abstract of Statistics for June, in its monthly review of business statistics, states: — The national volume of business in May, as indicated by the debits to individual accounts in the banks of issue, showed a recession from April, but a substantially higher level than that recorded for May of last year. The movement of goods in primary channels, as reflected in the combined figures for the railways and coastal shipping continues above 1925. Dairy production continues on a favourable scale, with the outputs of butter and cheese now well above the record figures for the whole of last season with two months yet to go. The slackening-off in the mutton export trade has been continued, but the lamb trade has been maintained on a level above 1928; exports of wool for 1929 show increases in quantity but decreases in value. Imports show a recession as compared with April, but the relevant statistics show a definite upward trend over 1925. High deposit figures still characterise the banking situation; and marked activity continues in both branches of the" mortgage business, particularly in the liquidation of indebtedness. "Prices show a slight upward movement since April. Dairy Production. Butter and cheese grading figures for May indicate that the high level of production has been maintained, and that the seasonal decline has not been so marked as in previous years. For the month, butter showed an advance of 6.8 per cent, and cheese 8.8 per cent, over May, 1928. The cumulative totals for 'the ten months of the dairying season show higher levels for both commodities, butter being up by 9.9 per cent, and cheese by .14.4 per cent. Attention was directed last month to the increases of the cumulative figures for the nine months of this year over those for the 1927-28 year; May has witnessed the ten months' production being carried to points 6.5 per cent, and 10.9 per cent, respectively, for butter and cheese, above these yearly figures. Meat and Wool. The exports of frozen lamb in May receded by 0.6 per cent, in quantity, but gained by 3.0 per cent, in value. This brings the cumulative figures for the seven months 1.7 per cent. In quantity and 4.G per cent, in value above the figures for the corresponding period of last season.

The slaekcning-off in the mutton export trade this season was continued in May, when decreases of 13.8 per cent, anrl 7.4 per cent, were recorded for the quantity and value respectively as compared with May, 1928. Secessions were also recorded for the sevenmonthlv cumulative figures, but, as in the case of lamb, the decrease was more marked in quantities than in values, the former showing a decrease of 7.6 per cent, against 1.3 per cent, for the latter. Marked activity was recorded for the beef trade in May, but the level for the season is well below that for last season. Wool exports in May showed gams of 30.6 p_er cent, and 0.9 per cent, in quantity and value respectively as compared with May, 1928, while for the five months a gain of 3.5 per cent, m quantity was accompanied by a recession of 6.9 per cent, in value. The aggregate values of the wool exported during the five months of 1929 were just under £950,000 below the figure for the corresponding period last year. Overseas Trade. In contrast with this slackening off in the exports, the recorded values of imports show an upward trend. Notwithstanding a recession of 5.4 per cent. in May the cumulative five-monthly figures show a gain of 7.6 per cent., while moving figures for twelve months reflect an increase of 5.2 per cent. Both movements are reflected in the visible balance of trade, whieh was approximately £9,000,000 in our favour for the twelvemonths ended May last, against approximately £12,000,000 for the year ending in the same month of 1928. There is evidence that this balance' of trade, which has been abnormally in favour of the Dominion, is being adjusted by the customary economic forces—viz., a rising tendency in the prices for imported goods and increased activity in the import trade. During the twelve months ended May, 1928 £2,001,079 represented the value of motor-vehicles imported. Within the relatively short space of twelve months this figure increased to £3,601,341 or bv over £1,600,000. The quantity of motor spirits increased by approximately 1,000,000 gallons during the same period, but owing to greater importations in bulk the recorded value decreased from £1,764,853 to £1,755,474. Banking. The aggregate debits to individual accounts in the banks of issue for the four weeks ended May 27th showed a recession of 3.56 per cent, from the figure for April, and again of 11.54 per cent, over that for May last year. Deposits reflect the favourable balance of trade of recent months, and 'are running on a level approximately £4,000,000 above that for the corresponding period last vear. The latest figures show that the seasonal contraction m the winter months has commenced. Non-interest-bearing deposits are approximately £1,000,000 below what they were at the end of April, while those bearing interest have increased by approximately £300,000. Compared with figures at the end of May, 1928, non-interest-bearing deposits show an increase of approximately £700,000 against an advance of £2,300,000 in those bearing interest. In common with the debits, the aggregate debts due to the banks reflect an improvement in the volume of business; the figure at the end of Mav shows an increase of just over £2,000,000, or 4.76 per cent, over that at the end of May, 1928, as compared with an increase of 5.63 per , cent, in the deposits, exclusive of Government business,. This relative lag in the advances is reflected in the ratio of advances to deposits, whieh stood at 82.73 per cent, at the end of May, 1928, but now stands at 80.68 per cent. Finance. Seasonal activity was recorded for real estate transactions in May. Judging by the registered values of land transfers, the volume of business showed a gain of 36.6 per cent, over April, and a drop of 3.4 per cent, below May, 1928. Cumulative five-monthly totals reveal a level of business for the current year 7.8 per cent, above that for 1928, while twelve-monthly moving totals show a gain this year of 3.2 per cenC The registered mortgage business, which largely represents part of the purchase consideration of property sales, showed gains in May of 27.6 per cent, and 16.6 per cent, over April, 1929, and May, 1928, respectively. The volume of business for the five months shows an advance of 19.0 per cent., while moving twelve-monthly totals show a gain of G. 3 per cent. Mortgages discharged are generally regarded as fairly good indicators of the spending-power available. The figures for May reflect marked activity in this branch of business, showing increases of 23.2 per cent, and 28.5 per cent, over May, 1928, and April, 1929, respectively. Increases of 15.1 per cent'. and 9.7 per cent, are disclosed by cumulative five-monthly figures and moving twelve-monthly totals respectively.