FINANCE AND COMMERCE.

Press, Volume LXVI, Issue 20086, 15 November 1930, Page 20

FINANCE AND COMMERCE.

EMPIRE GOODS. |

A GROWING DEMAND. STORE MANAGER'S VIEWS. (*ROS£ OCR CWN COHRESPOXDZKT.) LOXDON, October 9. In connexion with the visit of the .Doini'njon Prime Ministers to London, seven 01 the large provision stores in the City offered facilities for special rlisplays of overseas produce. The idea I, that the delegates to the Imperial Conference may Unci time to visit some or all of these establishments. ltie Ki"b Commissioner for Now Zealami arranged that the Dominion should be well represented and special displays were set. up at Whiteleys, t.ivil Service Stores (two branch®;), Army «nd Navy Stores, the Haymaiket stores, John Barker's, and Selfndge sAt, the Civil Service Stores, for 111stance, one branch of which is a few doors from New Zealand House, in the Strand, one of the mam windows i-s devoteu entirely to New Zealand produce. Inside a section is also arranged with New Zealand produce, a - crctre piece being a beautiful spray of foliage made of butter. A card the firm is offering to customers contains the injunction: "\\e i ommend to your serious consideration ilio following" statement by Sir Thomas Witford, KI'.M.G, K.C., Hiah Commissioner for New Zealand. Ir you .spend a £1 in buying overseas produce vour money will be used by your cousins in buying goods which you Manufacture, and thus you will help to keep the money in the family,' and <he Civil Service Supply Association affirms that for quality and price Empire produce is unbeatable." The firm also invited its customers to afternoon tea during- the whole of this week, the cost being partially I'Orne by the Dominions The meal consisted oi Indian tea. bz'ead of Canadian flour, fruit from Australia, Empire jams, New Zealand honey, Cyprus marmalade, and Canadian maple *>rnp. Visitors were also presented with souvenir samples of fifteen different Empire commodities, including New Zealand honey. A Growing Trade. ■'.More and more,'* sak! Mr Thomas W King, C.8.E., general manager of the stores, "the public are insisting upon buying British Empire products. It foreign goods are offered, shop assistants have often to explain why they are not Empire products. We have always favoured Empire goods, because we believe they represent the business of the future, and we shall be in a better position to take advantage of that business than those competitors who have not specialised in Empire products. "We are finding it more and more easy to sell Empire produce, especially when it is marketed- in the way New Zealand produce is marketed. The difficulty is that the producers of various Empire products have no representatives in London aB the dairy, honey, meat, and fruit producers of New Zealand have. "If there are any New Zealand producers," added Mr King, "who are interested enough' to write to me on any subject relating to the marketing of their produce I should be glad to hear from them."

Mr King is a member of the new Marketing Committee of the Empfre Marketing Board. EXCHANGE SITUATION. MELBOURNE BANKER'S VIEWS. Beferring to the exchange situation, a Melbourne trading banker, whose views on tho question are known to be similar to those of many other bankers, naid: "It has been noted that transactions in exchange have taken place outside the banks at rates 1 per cent, or tji »re above those officially quoted. Sellers ot exchange are showing an incli- j nation to increase their price, possibly j baing influenced through statements ' l-iiblislied that exchange should be al- j lowed to go up to 20 per cent, or 25 j per cent., an argument for this being that the primary producer will get through this means some further benefit beyond the 8J per cent, now allowed to set against the low prices ruling for his produce. High rates, however, will work • both ways. The imports are being largely reduced, and to a great extent now consist of essential requirements for our primary and secondary product i b in the shape of raw materials, machinery, bags, etc. The cost of thes« will be considerably increased should exchange be forced up -unduly. Tha Government expenditure also will l>e gifatiy added to for the purchase of covci on London to meet its paymeuts there for interest and services. There are factors developing which may tend to make the exchange position easier. The funding of the floating debt in London has been mentioned, and this might release funds whicii are now unavailable; also, the diminishing imports are reducing the adverse trade balance. Statements of theoretical neeewity for increase, in rates tend to . excite anticipation of increases and to divert from tho banks funds needed for Government London requirements for inteiest and traders' London needs. The banks desire that itfe means .taken to meet the Government exchange requirements in London for payment of loan interest shall bo effective, and at as small a cost as possible."

CANADIAN TARIFF. (rnov oca own correspond ekt.) LONDON, October 9. During his stay in Ottawa, the Prime Minister (Mr G. W. Forbes) took the- opportunity of initiating discussions with the Canadian Prime Minister (Mr K. B. Bennett) and other Ministers on the subject of the arrangement of trade agreements between Canada and New Zealand. The matter, of course, arose out of the proposals of the Canadian Government to increase the tariff on butter from one cent to eight cents, and New Zealand's retaliation by removing the preference on Canadian cars. Mr Forbes pointed out that New Zealand was the biggest customer Canada had among the Dominions, and butter was really the only commodity "hey were able to supply to, maintain balance of trade. Naturally, there was no time to carry negotiations verv far, and it was arranged to continue the conversations in London during the Imperial Con-Ifi-pnco. The impression appears to be that if will be possible to conclude satisfactory arrangement's which will be of advantage to both Dominions.

(CONTINUED.)

COMPANY NEWS.

Rapson Rubber* The factory of the Itapson Tyre and Rubber Company, Ltd., Launceston, in liquidadation, wa3 to be reopened this week, following a satisfactory agreement having been arrived at between the Launceßton Council and the liquidator concerning the supply of electric current. The number of hands to be employed is about 150, and they will be engaged by degrees, preference being given to previous employees, especially those out of work. Some of the employees will be on part time. It is nearly nine months since the factory waß closed. Soma Oil. 31r.i1, P. Cordia, chairman of directors of the Roma Blocks Oil Co., stated last week that the welt was producing 30 gallons of crude oil daily, which quantity, coming from the small amount- of oil-sand so far opened up, was quite satisfactory. The directors had advised that their policy was to continue bailing operations for a month or so, in order to prove what production could be obtained from the sands already penetrated, before drilling deeper. Australian Gypsum. Directors of the Australian Gypsum, Ltd.. have decided lo make available one-half of the £IO,OOO worth of second mortgage debentures recently authorised by the shareholders. The fact that the company was recently successful ~in a legal which has considerably reduced its liabilities has enabled it to avoid issuing the remaining debentures. The issue will carry interest at 20 per cent- per annum, »ud will be offered to shareholders in the proportion of £3 worth of debentures for every 200 shares oc part thereof held. The debentures will be payable in full on application. Australian Distilling. As the company now has funds available to redeem the whole of the debentures amounting to £11,050, together with &C' crued interest, the directors of the Australian Distillery Co., Ltd., have decided to offer to redeem the whole or any portion of the issue at par, plus interest to November 30th. They expjain that it is known that many of the holders are able to make better use or the capital. Queensland Deposit Bank. Queensland Deposit .Bank, which has a paid-up capital of £66,836, *x.d a reserve account of £50,000, discloses a profit of £7565 tor the year ended bejusmber 30-ii. compared with £7687 for 1929. Dividend of 10 per cent, on paid-up capital and 6 per cent, on calls paid in advance absorb £6074, a sum of £175 is carried to reserve for taxation, and £4590 ia carried forward against £3874 brought forward. During the year deposits declined by £*25,814 to £157,8i4, and advances decreased by £13,007 to £179.941. electrolytic Zinc.

Although operations of the Electrolytic Zinc Co. of Australasia, Ltd., have reached the pinnacle of efficiency, the abnormal circumstances existing and the accumulation of stocks, resulting in the temporary locking up of money, may preclude payment of \th*' half-yearly dividend on the preference and ordinary shares in January. At the, annual meeting in Melbourne Mr Colin Frascr, who presided in the unavoidable absence of the chairmsp of directors (Mr W. L. Baillicu) said: •'Because of the almost unprecedented contraction of purchasing power in all countries and the lower price realised for the reduced quantity of zinc sold, the provision of money meet our capital expenditure on developmental works, investments, etc., has made an unexpectedly heavy call on our cash resources. I make this observation in order to indicate that future dividend distributions for some time ahead are dependent not only ( on profit earning, but on realisation of products to an extent that will leave us with sufficient actual cash for the payment of i dividends. At the present time our metal stocks represent—even at the ruling low prices—-a Bum of approximately £400,000. I am not making any attempt to forecast the time during which these difficulties will prevail, but I think it only fair to let you know that the abnormal circumstances now existing and the extent to which money is temporarily locked up in unsold zinc, will probably preclude payment of the half-yearly dividend, which is usually declared early in January. The preference dividend is, of course, cumulative, and I can only express the hope that there will be a sufficient improvement in conditions generally to permit of payment of the full year's preference dividend at the . close of the financial year. ! I am afraid, howe.ver, that realisation of our metal stocks may not proceed at a rate sufficient to provide funds for a* dividend on ordinary shares this year." Adelaide Electric Supply Co. The statement .of the Adelaide Electric Supply Co., Ltd., for the twelve months ended August 31st last, exhibits net revenue at £444,213. or £6511 less than for 1925-29. After writing off the cost of the debenture* stock issued in Adelaide in October, 1929, and £3562 off the cost of the London issue in April last, and providing for interest and sinking funds, net profit is £313,970, against £331,534 for the previous year. The directors have allocated to general reserve £72,000, and to contingency reserve £15,000, leaving £226,970. Interim dividends have been paid amounting to £116,250. Final dividends on preference shares for. the year were paid as follows:—6 per cent., £7500; 5 per cent., £6250; 3 per cent,, £10,000; 6h per qent., £32,500, leaving £56,250, which it is proposed to apply as under:—Final dividend for the half year on 750,000 8 per cent. £1 preferred ordinary shares, £30,000, and final dividend of 6 per cent, on 500,000 £1 ordinary shares, £30.000. (making 12 per cent, for the yeai), leaving a deficiency of £5530, towards which £SOOO is transferred from dividend equalisation reserve. With £32,029 brought forward, less the, remainder of the deficiency, there is £31,499 to carry forward. The report states, that owing to the high cost of remitting money to London, £150,000 5i per cent, consolidated debenture stock was issued in London at £9B' in April last. During the yeair consumers increased by 1823,, but there was a decrease of ' 6.7 per cent, in kelvins sold. The balance of the cost of two generating sets, which were sold to make room for larger machines, and some minor items have 4>een written off out of general reserve, which now stands at £242,601,. against £270,000 a year ago. Paid up capital at August 31st last was £3,000.000, and debenture stock £1,726,349. Assets include works, plant, etc., £4,847,978, and bank deposit, cash. etc.. £3-26,767. Guinea Airways,. Ltd. The BoaJrd s .of Guinea' Airways, in its interim report for . tlie 'tialf-year ended.

August Slat laati -says' that, although flying, in New Guiuea is hampered by adverse weather in this period, the revenue earned has been in. excess of the result for the corresponding half-year in 1920, despite the fact that all-round reductions in freight rates have been made. Quarterly dividends have been maintained to date. With the advancement of the company's activities ns : a result of development of the goldftelds, it 1 is necessary to conserve, resource? to provide for' contingencies. in the ensiling year, when carriage of heavy machinery on a largo scale, never hitherto attempted by air, . will ho undertaken, the future policy " for the distribution of dividends must be Rhaped according to the experience gained. The capital of the ccmpany has been increased by £20,000 for the purpose of extending the plant. The introduction at three-engined all-metal freight machines into New Guinea is expected by the end of the year. The chief pilot, . Mr A. S. Cross, is returning from a Visit to Europe and Ataerica, during which he niade personal tests of the lifting capacity of these machines, with results which he has described as very satisfactory. The first three-engined machine to be so tested rose to a height of 7000 f6et in twelve miiiuteg, carrying a maximum icud, consisting of a single metal casting weighing over three tons. Part of this ascent was made on. two engines qnly, thus demonstrating that the third engine pould be looked upor? as reserve power for emergency. Tnere is activity in New Guinea with the extension of the company's aerodromes, buildings, etc., and wharfage facilities, in order to ocje with the large truffle anticipated in 193 a by the importation of dredging machinery and hydroelectric j&wer plant for Bulolo 'Sold Dredging, tiirtiitSd," as well as other mining machinery for New Guinea Goldiields, Ltd. The Board will seek authority from shareholders, if thought fit at any time in the interest* of the company, to deal with any unissued shares without first offering such shares proportionately to existing shareholders. . ■ LONDON METAL MARKET. (Received November 14th, 11.55 p.m.) LONDON, November 14. The latest quotations on the London metal inirkct are. as follows: Nov. 10 Nov. 14. (per ton.) (per ton.) Ccpper - £ e. d. £ 8. d. Standard .. 49 6 3 49 8 9 Electrolytic .. 51 0 0 52 0 0 "Wire bars 5- 0 0 Lead " ! 16 0 0 16 2 6 Spelter .. 14 18 9 IS 10 0 Tiri .. 115 2 6 116 12 6 Silver (per oz.) .. 16 11-16 d l'Jd