FINANCE AND COMMERCE.

Press, Volume LXV, Issue 19805, 18 December 1929, Page 12

FINANCE AND COMMERCE.

' MARKETING OF WOOL.

GROWERS DISSATISFIED, j PROPOSAL FOR A BOARD. 1 ! [THE PBESS Special Service.] j WELLINGTON. December !"■ i Preliminary proposals for th«» estab- i Kshment of a Board to control and re- , gulate the marketing or wool were j placed before the Government Ly a , committee of the X-v,- Zealand Far- j Biers' L'nion. While admitting that co-operation Was in the interest* 01 th-? primary producers, the Acting Prime Minister <Hon. Mr Forbes; stated that there would have to be a certain amount >r unanimity amongst those interested before any was placed on the Statute Book. He said he would be only too pleased to attend a conference of the various parties, which is to be held early in the New Year. Mr W. J. Poison. M.P.. who headed the deputation, said it was contended that there should be some system of orderly marketing which would enable the sheep farmer to receive the best price*. It was thought that a Wool Board, with a reasonable franchise, would be able to do a lot for the pro-t duoers, who were faced with falling prices. The deputation asked that the necessary facilities should be accorded for the introduction of legislation on the subject early nest session. The producers were helpless at the present time. Mr F. S. Bow-en (Gisbornej said that the financial houses were limiting the buyers,to a certain maximum price. This year's fall in September was largely due to financial houses forcing the resale of all unsold purchased wool on hand at that date, reacting on the present clip. Tho grouping of small clips should be encouraged. Private celling of prepared lines should be encouraged by cable between sales. Sales should be extended to about ten months, which was now being adopted in Australia. The Customs Department should not give clearance of more than 70,000 bales per month of wool •old or to be sold in London, thus extending the selling season from four* months as now to ten months in the future. In actual practice, extending the sales a full nine or ten months would mean that buyers need only lean Upon the English and Continental banking houses for about 1J to 13 millions of money per month for the New Zealand clip. If this was extended by co-ordination with Australian and South African wool-growers, it must rebound to our credit to the extent of several pence per lb. In round figures, Australia's clip brought £65,000,000, the African about £18.000,000, the New Zealand about £14,000,000, a total •f &97,000,000. The New Zealand and African selling season is about ,four months and the Australian about six months, showing that the English and Continental banking houses found roughly £18,000,000 per month. By extending our selling season to nine months or ten months, they would, on last year's prices, find not more than nine or ten millions per month. This would give the smaller buyers a better opportunity of buying. Big banking bouses and big commission buyers were not an advantage to wool producers in the British Dominions, who produce a total of 1,346,000,0001b weight of wool out of a total world's production of 8,467,000,0001b. If the Customs Department in the three countries mentioned limited the export per month of wool sold or to be sold in London, rfhj|nufacturing houses could not obtain their ■applies of suitable wools from any other country. Substitutes were a big bluff in the buying of wool, and it was used to the utmost by manufacturing houses •nd wool buyers. If the Governments of the wool-pro-ducing Dominions and the Argentine gave a lead by placing a substantial duty on substitutes for wool, and substantially lowering the tariffs on woollen goods, or subsidising overseas manufactures, a stimulus to the trade would ensue. The present system of selling wool was well known to buyers as being entirely in their favour, brokers' value being regarded by both buyer and seller as being an absolute farce, better known as "meet the market." It was important in a matter of this magnitude that all countries concerned should be working together, and it appeared absolutely essential that our Minister for Agriculture should confer with the Ministers of both Australia and the Union of South Africa with a view of formulating a workable marketing scheme, suitable to all concerned. Mr Forbes, in replving to the deputation, said that he was not aware that the Farmers' Union was taking active steps to establish a Wool Board. Mr Bowen: Don't you think the price warrants itf Mr Forbes said that he knew that it Was the price the producers received for their lamb that brought the Meat Board into existence. When the drop in wool took place he had no doubt that a good deal would be heard about marketing. Anything in the nature of compulsion would, of eourse, require legislation. A number of preliminary steps had to be taken before that stage was reached. The deputation could rest assured that there would be no compulsion unless there was a certain amount of unanimity amongst the growers. The first step he considered to be necessary was the calling together ©f a conference of the interested parties. He agreed that a system whereby the farmer was left to sell his produce the best way he could was not the most up-to-date method of marketing. Co-operation was in the interests of the growers, but the question was how to bring about a measure of co-operation. The idea of a Wool Board had often* been discussed, but never seriously, by tls? individual growers in New Zealand. Mr Forbes suggested that there was a good deal of educational work to be done- before much progress could be made. However satisfied the deputation might be as to the value of a Wool Board, they had yet to convince the individual grower that such a body was in bis interests. He was quite willing to attend a conference on the subject. Mr Lysnar: You won't get much aid from the wool buyers' The Minister: I always believe in bearing everybody. I dou't say for one moment that the buyers will support a scheme for the purpose of greater co-operation between the growers in regard to the sale of their wool, but I think myself that the position is one that calls for an open conference. Mr Bowen said a conference would be k*W early in the New Year. SULPHIDE CORPORATION DIVIDEND. j** *• *" a »» 1 meeting of Sulphide CorporeA sfiJk*** ** k° ndon on December 19th. the ■ jwajw win recommend the payment on H iiSKS **** •* dividend* of 3s a share on ■■ «04,e00 Ml preference shares and 2s 3d a ■M *_??? ** GOO.OOO 15t ordinar* shares, in H 2S2££J! f tk * Tt * T * Bded June 30th - Both ■H rlMetbalkns win be subject to net income H£lV *?? **i* °* 2s 8d in £l, being; 4s tax. sH£SJu_ M **' l*- Tor 1827-28 Sulphide Cordividends of 2s oa preference M M e» ordinanr shares.

FROZEN LAMB.

ATTENTION TO QUALITY NECESSARY. "I wish it were possible to congratulate fanners on prospects for the coming season." said Mr John Deans ."chairman of the Board of <" vernors), at the prize-giving at Lincoln College. •-esterdav. ''Yields of grain will not "be so high as in the last two years, but the recent rains will improve them in many parts of Canterbury, and the price of wheat should be a payable one. Meat and wool, unless the Home markets improve very materially, will not give the- returns we had hoped for. "In this connexion perhaps you will pardon me if I lay further stress on a point which is all important to Canterbury, and, indeed, to the whole of New Zealand. That is the question of the quality of the lamb we export. We must, if we wish to retain our pre-emin-ence in London, pay more attention to symmetry of carcase and quality of meat. In other words, breed specially for the frozen meat trade. It was the quality of Canterbury lamb which first put New Zealand on the map as far as the supply of meat to London was concerned, and we- must use every endeavour to maintain and improve that high standard. Other countries are increasing and improving their supplies. South America has nearly doubled her export of lamb in the last six years, and we must not slacken in our endeavour to keep ahead in the race. After all our soil and climate are second to none, and we should be able to produce the best meat in the world. "All this points to the necessity for research, and for science and practice to work hand-in-hand for our benefit. "I hope that in spite of present indications the coming season may be a prosperous one for you all."

PRICE OF CEMENT.

QUESTION IN CITY COUNCIL. The price of cement was the subject of a question by Cr. M. E. Lyons at last night's meeting of the City Council. Cr. Lyons mentioned that the Council had agreed to purchase 2300 tons of cement. Since then the price had been reduced by 6s a ton, and ne wanted to know if any move had been made by the Council to secure a revision of the contract. Cr. F. R. Cooke said that they were getting cement cheaper now than they had got it previously, because they were using it in the" hot mix instead of sand. "Tho companies themselves hav9 offered to give up 6s rebate," explained the Mayor (Mr J. K. Archer). Mr J. A. Flesher asked 'f the chairman of the Works Committee was prepared to bring forward a suitable resolution acknowledging the generosity of the cement suppliers. When the laughter had subsided Cr. Cooke said / that it was a question of business. The Council was using cement instead of sand and consequently the suppliers were getting more business. The Mayor: Oh, I think we all might give them a vote of thanks and I express the hope that they give us a rebate of another six shillings. FAST BUSINESS TRIP. A PASSAGE BY AIR. A fast business trip by air was made yesterday by a director of the Goldberg Advertising Agency. He attended a meeting in Dunedin, and having another important meeting to attend in Wellington this morning, engaged Captain McGregor, of Hamilton Airways, Ltd.j to fly from Dunedin to Christchnrch, in order to connect with the ferry steamer. Leaving the meeting at Dunedin at 3,45 pjn. he travelled to Green Island, taking off with Captain McGregor at 4 p.m., and arrived at Sockburn at 6.50 p.m. From Sockburn he went by car to Lyttelton, arriving in ample time to connect with the ferry steamer. In this way a full day was saved. LAND SALE. Four revalued properties—one freehold and three leasehold—were offered for salo by public auction at the Lands Department yesterday afternoon. There were only six prospective buyers present, but one 6ale was made. Mr Jennison Milligan, of Whitecliffs, bought a property of 9f acres 2 roods 15 perches at Avonhead at the upset price of £250. The other three were passed in. The property sold is in Avonhead No. 2 Settlement, one mile and a quarter from the Riccarton tram. There is a two-roomed house with range and electric light. The chief clerk of the Lands Department (Mr H. R. Robinson) was the auctioneer. NATIONAL MUTUAL LIFE ASSOCIATION. Increased business is shown by the National Mutual Life Association of Australasia, Ltd., in its operations for the year ended September 30th. New policies written amount to 20.078, assuring £9,868,350, compared with 20,728 policies for 1927-28, assuring £9,807,845. In the 60 years of its existence the Association has paid in claims £22,265,447, and under current policies it has an amount assured of £81.262.284. Gross interest received during 1928-29 is equal to £5 lis 3d per cent., and after deducting rates and taxes amounting to £125,678, net interest is equal to £5 6s per cent, of the mean funds. New annual premiums on policies issned during the year amount to £379.097, against £363,805 for the previous term, and single premiums are £338.637, against £608,079. Death claims are £815.861, against £732,784; endowment assurances matured £654,623, against £720,552; and endowments matured £171,612. against £198.213. Total claims of £1,642,096 contrast with £1,657,549. The total of premiums received is £3.332,514, and interest and rents, after deducting rates and taxes' of £125,678, are £1,608.615. From all sources income of the Association for the year amounts to £4.941,130, and the addition to the assurance fund is £2,400.265. making its total £31.547,595. Bonus certificates showing the reversionary bonuses allotted to policies for the policv year to September 30th. 1929. will be issued on March Ist. The amount payable toj policy-holders during the vear is stated at £2.096.781, against £2.075,058 for 192728. The balance-sheet shows that claims intimated or admitted, but not paid, are £373.121, investment fluctuation reserve is £131.027, staff superannuation fund £53,103, and deposits, etc., amount to £62.867, the total of the balance-sheet being £32.167,713. TARANAKI OILFIELDS. Craoa Aeaocnrco* TiLaoßAir.) GISBOKNE, December 17. The Taranaki Oilfields reports: Uisborna No. 2 well—Cleaned out to 2900 ft, caving in not troublesome. Smoke stacks completed and draught improved. Arranging to fire one boiler with oil to increase steam supply. Kotukn No. I—Teat of hole following noon geological examination of cores from No. 1 teat bore. Decided to defer further boring for the present.