FINANCE AND COMMERCE.

Press, Volume LXVI, Issue 20085, 14 November 1930, Page 20

FINANCE AND COMMERCE.

!A GOOD SEASON.

CONDITIONS IN AUSTRALIA.

WOOL MAN'S IMPRESSION

Australia expects a record season for wheat this year, according to Mr E. O. Courtney, who has just returned to Ohristehurcb. Beneficial rains have fallen in nearly every State, and from .>OO zo 600 vessels will be required to lift the crops, that are expected to reach L' 00,000,000 bushels, he says. The Victorian crop uloue will be fully 65,000,000 liushels, and all over the country there is a marked decrease in despondency. I ndeed, Mr Courtney states, there is now j spirit of' optimism. This is particularly manifest in Queensland. •'ln spite of the fact that settlers in out-buck areas have realised the seriousi:£*sb of the depression, in view of wool prices, tlicv approach the future with every' confidence," said Mr Courtuey, who is keenly interested in the wool industry. "Drought-stricken areas that l ave been suffering for years have been transformed into lands full of herbage »nd grasses, and graziers are rejoicing at the good percentage of lambs. Selectcru and graziers are endeavouring to stock up as quickly as possible. "Owners are studying economy and nre retrenching, but not always to advantage, as it is essential that burr should be kept in check. A particular specimen of caterpillar has proved an enormous success in eliminating the prickly pear. Areas that were regarded :i* barren have been reclaimed. At one lime the prickly pear was spreading to nearly a million acres per year, but now . there ia every indication that it will be wiped out. "Since the depression, which has been a 'blessing in disguise,' everyone has realised the need for studying economy. Within five or six years bad debts are expected to be paid off. Agitators are gradually being disposed of, and, while workers with dependents are just existing at the moment, market values are becoming stabilised and the price of living is gradually decreasing." ARTIFICIAL WOOL. RESTRICTION OF OPERATIONS. Last year there was .floated a company for the manufacture of artificial wool, states the October issue of "Minister's Gazette of Fashion," London. It took over a French factory, intending to enlarge it to an eventual output of 10 tons a day. The company is now in a precarious condition, for the directors find they 'cannot compete, with their artfiicial product, against the inferior sorts of natural wool. Production has been suspended and the factory is being offered for sale. Another concern, the vast American Woollen Company, whose capital is about £20,000,000 shows a loss of nearly £500,000 on last year's trading, although its enormous resources might be expected to afford every facility for economical production. This company has now sold two of its largest factories and has suspended work in 34 others until the arrival of better times. Yet in medinm-grade qualities such as aro manufactured over there, America has things all her own way, and suffers no competition from abroad,it is only in highest qualities and special novelties that British woollens find their way across the Atlantic. To people who appreciate the best and will have it, even the most fantastic import duties arc no obstacle. SYDNEY WOOL SALES. FINE-QUALITY SORTS IN KEEN DEMAND. (UXITKD miss ASSOCIATION—BT ELECT&IO TXLBGSAPH—-COPYRIGHT.) (Received November 13th, 10 p.m.) SYDNEY. November 13. At the wool sales, 10,583 bales were oiferod, of which 10,098 were sold at auction and 1332 dispos'ed of privately. Keen general competition continued. The advance reported yesterday for line quality wools was fullv sustained. Faulty sorts were difficult .of sale. Greasy merino sold to 21d. WOOL OUTLOOK. In their latest report on the wool situation, Wineheombe, Carson, Ltd., state that many persons may be building on hopes that when a revival in priees of the sheep's staple takes place experiences of values will bo similar to those seen after the 1920-21 slump. They point out that conditions now differ entirely from the circumstances which, obtained at that period. In Europe paper money was afloat in reams, the United States was "booming," tourists from that country were spending millions of money in the Continent of Europe, war-devastatod areas in France and Belgium were being rebuilt, employment was plentiful, and materials of all kinds were being used ire large quantities. The people of the United States were enjoying large incomes, and were spending them freely • on luxuries. Silk, among other articles, was enjoying their favour, and high prices were being paid for it, whieh enabled Japan, in her turn, to use wool freely at high figures. To-day the position is that Europe has had her lesson in financial inflation, and will not repeat it quickly, and in all countries the post-war "boom'' has left bitter results. "What has Australia to show for her after-the-war xtreme prices for wool, wheat, metals, etc.!" asks the firm. "It encouraged investment in pastoral lands, agricultural lands, and invdvurtries generally, which are now labouring under excessive capitalisation and unduly heavy working expenses." On sound reasoning, the firm states, it cannot see any prospect of a strengthening in the demand for wool sufficient to send prices to the levels experienced from 1922-23 to Barbie. NEW ZEALAND BUTTER FOR CANADA. IMPOSITION OF DUMPING DUTY. '.CnTBD PRESS ASSOCIATION —BI ELECTRIC TEr.EGHAX'H—COPYRIGHT •'l VANCOUVER, November 12. Two thousand cases of Australian butter arriving on the Aorangi have been assessed for damping duty at six and a half cents a pound. New Zealand Gutter on the same vessel has been assnssd at eight cents a pound. There is apprehension that New Zealand butter mar be shipped as Australian to secure, the lower rate, and the Government is pianai£2 precautionary regulations.

LONDON TRADE.

LIQUIDATION AND LOSSES.

lii a private London letter, received recently by a Brisbane business house, the following information is given: "Immediately after the war large numbers of small shops with smart displays of dresses and coats opened on both sides of Oxford street, from Tottenham Court road right through to Selfridge's, but these have not been a success, and many of them are closing. One large wholesale manufacturing mantle house is being liquidated, having lost about half of its capital through supplying these shops with goods. Another very old mantle firm, which had 82 shops in London and throughout the provinces, has recently gone' into liquidation, being unable to trade profitably on account of the high rentals and expenses, which would appear can only be profitably worked by the large general stores.

"It is very interesting to learn ol' the proportion of capital which is invested in fixed property assets in some of the large concerns in the Commonwealth. Looking at the enormous building schemes which have been, and are still, in progress, in the West End of London, one would certainly conceive that the position here is not much, if any, better. Probably the banks here are' more liberal in their advances, but I was told a few days ago that the principal banks during the last few months had been pressing for reduction of overdrafts. This no doubt is the reason why some of our large concerns have recently passed their dividends, whilst others are under reconstruction.

"A remarkable - summary was presented by the president of the Socrety of Incorporated Accountants recently, who stated'that, taking 58 companies, the prospectus of which for , a new business was advertised in a particular newspaper during the last six months of 1028, he found that only one has yet paid a dividend, while 27 are already in liquidation, t and at least 16 others are in serious difficulties. Of the total capital of the 58, no less than 95 per cent, has been lost according to the present market valuation of their shares."

AUSTRALIAN WHEAT INDUSTRY.

CONFERENCE AT CANBERRA.

(UNITED PRESS ASSOCIATION —BY ELECTRIC TELEGRAPH —COPYRIGHT.)

CANBERRA, November 13,

The conference of State Ministers of Agriculture with growers, millers, merchants, and other representatives of the wheat interests, adopted alternative proposals which the Federal Government will be asked to consider in order of preference as follows: (1) FrOm South Australia, suggestion for a sales tax of 144s a ton on all flour sold by millers for local purposes for a period of one year to December 31st, 1931, the proceeds to be distributed j among the wheat growers of the various States on a pro rata basis. (2) A Government guarantee of 3s a I bushel at country stations.

(3) The imposition of a sales tax on flour for local consumption that will return 4s 9d a bushel for wheat at the terminal ports. Mr F. M. Fordo, Acting-Minister of Markets, said that the defeat of the Wheat Marketing Bill in the Senate was a serious blow to the farmers, one result being that the Commonwealth Bank could not undertake to pay any guaranteed price. SOUTH AFRICAN GROWERS SEEK TAX. , CAPE TOWN, November 12. An increased duty on flour will be considered by Cabinet after General He#zog*s return from the Imperial Conference. Wheat farmers are pressing for a prohibitive • duty, pointing out that when flour was sold at 42s a bag bread was the samo price as it is to-day. It is understood that the Labour members are unlikely to favour the proposal, which ' will widen the breach with the Nationalists.

GISBORNE SHEEPFARMERS*

COMPANY.

LOSS OF £7700 FOR YEAR. The anniiiil report 'of the Gisborne Sheepfarmers' Frozen Meat and Mercantile Company to August 31st, 1930, shows increased killings (excepting cattle) for the year, sheep and lambs numbering 356,711, as against 247,110 last year The directors anticipated that nftth the reduction of freezing charges made in January* last, killings of sheep and lamb would have reached 400,000; had this been So they state they feel confident that the freezing department woiil3' have shown a profit. Turnover in the mercantile department showed little variation from last year; Keener competition had lowered the gross profits, and "the position can only be adjusted by an increased turnover. The continued low values of primary products forecasts a difficult year." A loss of 7729 was reported as the net result of the year's Working, from which was deducted the carried forward balance of £2B, leaving a debit balance in profit and loss appropriation of £7701. The freezing department showed a substantial increase in the killing at the Kaiti works and a small increase at the Tokomaru works. Economies had been effected by changing from gas to electricity. The value of the works is set down at £407,595. The report concluded: "The coming season is going to be a difficult one, and in view of the present low values of byproducts and high award rates a further revision of freezing charges appears imminent." UNION OIL AND SOAP COMPANY [TBS PRESS Special Service.] AUCKLAND, November 13. A final dividend of 9d per share and a bonus of 6d per share, making 2s per share for the year, has been a&nouneed by the directors of the Union Oil, Soap, and Candle Company, Ltd. This is at the same rate as last year. BIG LOAN PROPOSED. (tEXSB tSSOCIATIOH nr.wtn.tr xv ) DUNEDIN. November 13. The Drainage Board passed a resolution authorising the raising of a loan of £1(20,000 for extending the drainage and sewerage system;.