NEW ZEALAND FLAX.

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

NEW ZEALAND FLAX.

PAPER-MAKING EXPERI-

MENTS

TESTS IN AMERICA

That New Zealand flax is suitable i'or high-grade line paper and strong wrapping paper is the opinion expressed by the United States Bureau of Standards after samples had been examined. The official report of the paper division of the bureau is as follows "Both laboratory and semi-commercial paper-making experiments were made through a test procedure essentially the same as that generally observed in paper production. Test cooks of the flax were made, using as reducing agents caustic soda, caustic soda and sodium sulphide combined, and sodium sulphite and caustic soda separately. Good bag or wrapping paper pulp was produced by cooking the flax with the caustic soda process, using comparatively small amounts of caustics (10 per cent.). With larger amounts of caustic (23 per cent.), the pulp could be bleached with about 14 to 16 per cent, of bleach and was then suitable to use in admixture with other pulps in making fine papers. In the semi-commercial tests the yield of airdried unbleached pulp from the 25 per cent, caustic cook of unscutched New Zealand flax was 57.2 per cent., based on the bone-dry weight of the flax, while the laboratory test yielded 57.7 per cent. "This shows a very close checking of results as to yield between the laboratory and semi-commercial tests when similar cooking conditions and amounts of chemicals were employed: When 10 per cent, of caustic was used the yield of unbleached pulp was 77.4 per cent. However, this pulp was suited only for wrapping paper, as contrasted with the pulp obtained from the 25 nor cent, caustic soda oook, which could be bleached and • the resultant pulp made satisfactory for use in fine paper. Unscutched flax cooked with 15 per cent, of caustic soda and, 1U per cent, of sodium sulphide combined gave a yield °f 62.2 per cent. The. pulp obtained was satisfactory for use in wrapping paper."

AMERICAN INDUSTRY.

CONTRACTION OF PROFITS. A comprehensive analysis of American industrial earnings for the first half of 1930 has been made by the National City Bank of New York. It is based upon the combined figures of 555 companies. Decreases in profits shown by comparison with the first half of 1929 .and of 1928 are shown to be 30 per cent, and 6 per cent, respectively.* Moreover, the bank points out, allowance should be made for the increase in the funds invested iik the businesses resulting from new capital issues or additions to reserve, etc. In 1929 th.e capital and surplus of the companies dealt with expanded by 11 per cent., and in the two years since January, 1928, by 19 per cent.

Taking the basis ot earnings to total funds invested, earnings for the first six months of 1930 were at the rate of 9.2 per cent, per annum, against 14.8 per cent, in the first six months of 1929, and 11.7 per cent, in the first half, of 1928. While these figures indicate the severity of the setback in industrial profits in the United States, the bank claims that a return of 9 per cent, on capital and surplus is by no means unfavourable in view of the trade depression.

TRAFFICKING IN EXCHANGE

A few weeks ago the directors of the Adelaide Electric Supply Co., Ltd., announced that the transfer of no class of stock or debenture stock of the company from the Australian register to the London register would be permitted, except in genuine cases, such as the change of domicile of a holder. Later the Board of the British Tobacco Co. (Australia), Ltd., also decided that no such transfers would be made by that company. Now it is announced by the directors of the Melbourne Electric Supply Co., Ltd., that requests for transfers of shares or of stock of the company from the Australian register to the London register, until otherwise determined, will not be approved. The steps taken by these tlireq companies are significant, says the "Argus." It has been exceedingly difficult to obtain exchange on London, and a number of people who have desired to transfer funds to London have employed various means for the purpose. Among them lia.e been the' purchase of'stocky and shares of Australian companies with registers in London. This buying has at times established a false market for the stocks and shares affected, and there were indications that the directors of the companies concerned were opposed to such trafficking in exchange. Had transfers been permitted to proceed unchecked a more difficult situation would have subsequently arisen. Dividends of a larger aggregate amount would have had to be transmitted to London, and this would have tended to accentuate the already acute exchange 1 position. The loss of buying support in the market might react against the value of shares in the companies concerned, but probably only to a minor extent. DREDGING FOR GOLD. iTRt&a association t&lxosajO IN VEItCARGILL, November 13. Tlie Golden Terrace Extended Gold Dredging Company reports a return of ninety-two ounces for nine days' work from the ground previously worked by the old dredge. The company expects soon to be on a better wash, when increased returns are confidently anticipated. The machinery of the big dredge is running smoothly. DANGERS OF INFLATION. ''The dangers of inflation are so manifest that .it is hard to believe that any sane Government will lend itself to such a disastrous policy," said Senator Lawson. chairman of the Board of Directors of the Perpetual Executors and Trustees Association of Australia, at the annual meeting in Melbourne. Senator Lawson said that the opinion of the Board of Directors was that the problem of finance could bo solved only by Governments. Companies and individuals could do their parts, but until Governmertt finance was put in order the efforts of others could not be successful. Referring to the visit to Australia of Sir Otto Niemeyer, of the Bank of England, which he described as "an outstanding event," Senator Lawson remarked that those who expected him to apply "to Australia's ills some magical cure from outside h;ul now realised that such ills must be cured by internal treatment*