FINANCE AND COMMERCE.

Press, Volume LXVI, Issue 20088, 18 November 1930, Page 12

FINANCE AND COMMERCE.

BRITISH TRADE REVIEW.

AUSTRALIAN STOCKS RECOVER. ifNCOt'RAGING WOOL PROSPECTS 1-3 KSK ASSOCIATION' —BVT ELECTRIC TBLKGRAPH— COPTKIGHT-j LONDON, November It). The lone of the Stock Exchange has somewhat hesitant under a variety of more or less adverse factors, notably the more stringent money conditions. and the flow of gold to Trance; hut during the last Jay or two these • .-uses of depression have become less [jrominent. and gilt-edged slocks have hardened again. A most satisfactory feature lias been the steady appreciation of values W't Australian Government securities, which the newspapers unanimously ami justly attribute to the lirm attitude iakeii by Mr J. H. ScuHiu. Prime Minister ot' Australia, and Mr J. A. Lyons < Federal Treasurer) regarding the Labour Caucus's subversive proposals. There has been a fair amount of buying in Commonwealth stocks, largely by professional operators, for the average investor has not recovered from the rude shock administered by the Caucus's action. Australian Stocks. Discussing this subject of investing in Australian stocks, the well-known linancial writer, Arthur Kiddy, says in the "Spectator": "Although the average investor has confidently embarked his /ripital in Australian loans for many vears, the fact remains that many important financial institutions for some time past have refrained from investigating Australian securities, and some trustees have declined to include them in their list of securities held on trust. This reserve has certainly not been justified by any failure on the part of Australia to fulfil her obligations, but reserve has been justified in the sense lhat the fall of Australian stocks has proceeded to a length which could scarcely have been expected in the .stocks of our overseas Dominions, and this reserve also has been justified by the deterioration in economic conditions in Australia over a long period."' The Wheat Market. That Bussian shipments are largely responsible for the unsatisfactory state of the market will be realised from the following figures for the week ended on Wednesday. Exports from South Russian ports totalled 994,000 quarters, the largest for any week since 1910.

In addition 79,000 quarters were exported from Danube and Bulgarian ports, making a total from Russian and Danube ports of 1,023,000 quarters, compared with 154,000 for the corresponding week of 1929. Wool Prospects Encouraging. "Wool prospects are encouraging as far as merinos are concerned, and the Bradfotd market is inclined to be optimistic. According to the "Yorkshire Observer" encouraging Teports emanate from various well-informed quarters regarding the position in the merino section of the industry. One estimate, based upon an exhaustive survey of the position, leads to the conclusion that activity in merinos all round, including top-making, spinning and manufacturing, is 10 per cent, better than it was three weeks ago. There seems to be no reason to question the fact that a decided improvement in the output of merino tops, consequent upon extending the demand for botany yarns and fabrics has recently occurred.

The writer continues: "The wool industry looks like coming into its own again soon. "Such an expression of optimism at a time when the palpable reasons for depression have been only too evident for so long may seem unduly venturesome, but the question may reasonably be asked if when combed wool of the finest type costs only about 24d or 2od a pound, and semi-fullv manufactured goods are correspondingly cheap, the foundations for an increased demand and more extensive industrial activity do not exist, when are they going to do sof" Butter Trade Slow. Although the butter trade at the moment is decidedly slow, there lias been a good demand for the past four weeks, stimulated greatly by the low retail prices. This has resulted in a considerable reduction of cold store stocks, which are now estimated at about half what they were fourteen weeks ago. Against this reduction must bo put large imports from Australia, New Zealand, and Argentina, and the prospects of supplies from these sources being maintained ou a large scale for some time to come. Imports during October from all countries amounted to 515,490 <-.wt, compared with 377,095 in October, 1929. It is interesting to note, as one leading firm of importers points out, that although this October's imports exceeded last October's by 36.4 per cent., 1 heir value was lower by 1.!) per cent., a striking illustration of the enormous fall in values. The Egg Market. Importers of Australian eggs have not succeeded in maintaining prices as they hoped to do, and the best figure obtainable for the largest is 16s per long hundred, against 17s a fortnight ago. This is mainly due to the very heavy supplies, but the difficulties of

t lie situation have been increased bv the arrival of considerable quantities of Victorian sold forward at a price equal 10 about 13s tid landed. In the .face of competition from these cheap eggs, importers have had no option but to lower the price for other States. CHEESE QUALITY. {THE PRESS Special Service.] DUNEDIN. November 17. The question ivhetlier or not New Zealand should export only full-cream cheese or whether the export of standardised jheese should also be allowed lias exercised the minds of persons and bodies who have the welfare of the Dominion's oversea trade at heart for some time. The Council of iho Dunedin Chamber of Commerce li»is considered the matter full.v and the following telegram lias beeii sent U> the Minister for Agriculture (the Hon. A. J. Murdoch): — ''Being of opinion that the export of standardised cheese is detrimental to the prestige of Now Zealand cheese rnd is seriously affecting the market lor lull-cream elice.se, the Council of i lie Dunedin Chamber of Commerce urges tli'- Government to prohibit the e*r>o7't ol st,ini.lardisod cheese." I A telegram sent to the .Minister lor A.cri icwltiire hy the Farmers' Union earnestly, requests the Government to prohibit the export of standardised 1 1'cese. as the Union considers the product is detn'nental to the prestige of e ' v /cril.-ncl cheese generally, and is 'J- rrraemg the market for lull- cream clteew.

DOMINION'S WOOL. VIEWS OF A CONTINENTAL BUYER. attention to breeding and PREPARATION. • souie timely advice to wool-groweis was given yesterday by a Continental wool-buyer, who has recently arrived from Knrope, to attend the 1SK!0-19l!.L New Zealand auctions. Speaking as an overaeu- buyer wiili considerable experience of the New Zealand trade, he said that he, in common with many other • representatives of Continental manufacturers, had been disappointed in the general quality or last year's clips. Tl.o very poor catalogues submitted at Wellington and Napier had shown a distinct lowering o> the standard of even four years agolar"elv the result, he maintained, oi. careless breeding. The wool had shown a loss of softness, contained 100 much hair, and was often discoloured. Kvor. after making allowance for the effects if bad weather through the growing sea loii, there remained a more substantial cause for deterioration. "Farmers are becoming careless in their breeding for wool pi eduction, he said. "Argentine wool, on the other hand, has shown a distinct improvement in recent years—the result, probably, of importing tho best New Zealand rams each season. Soon, perhaps, New Zealand will realise that it is

making the same mistake vrith tlic Argentine that Australia made with Russia, but then it may bo too late. It 'f a fact that many buying orders wliu-n | in the past were usually sent to New J Zealand are now being diverted to 1 lie | Argentine. j Mixing of Sheep Dip. "Much could be said about sheep dip. Farmers must realise the importance ot. correct mixing, and the necessity for avoiding dips containing too high a j sulphur content. Once wool has been j stained with a dip the blemish cannot be removed and we buyers receive many complaints about damage to wool caused through the faulty mixing of sheep clip. In Europe, X have seen Argentine wool of very coarse quality, but still very soft and of good colour and cer-. tainlv better than any New Zealand wool* of the same type. New Zealand sheepfariners should have Governmentassistance in the importation of the linest rams from England and the establishment of a centre for research in sheep-breeding for wool production might achieve a great deal." The buyer said lie could profter no better advice to the Dominion than to suggest that it concentrate on the Ttoniney, Leicester, Lincoln, and Shropshire breeds, leaving Merino wool to the other countries like South Africa and Australia, which were better suited to its production. New Zealand was a wonderful country for the liomney, Leicester, Lincoln, and Shropshire breeds and concentration on them, together with close attention to breeding, and more careful and uniform packing, would imI prove the position of the industry in

this country. Referring to the preparation of wool for sale, he said he would prefer to see more "star" lots and less mixing of stained wool with that of first class quality. In some eases pieces and bellies and even crutchings were baled with fleece wool. The difficulty that created need not be dwelt upon. "Farmers must not be allowed to think that because prices are low they can put in a bale anything called wool, and mis the lot up together. They would soon see the effect in a serious light," said the buyer. Trouble Caused by Burrs. One other point causing trouble 1o the buying end of the industry was the amount of burry wool. Burrs were not like ordinary seeds, which fell in the process of carding. They stuck obstinately in the wool, even in top making, andtheir removal was most expensive. "Generally speaking, the Continent needs more Lincoln wool, more carding wool fleeces, first pieces, first bellies of good lines, and there must be no stained wool from careless dip mixing," he said. "Wool containing burrs or dry grass should be packed separately and necks with dry grass should not be mixed with free first pieces and first bellies. Lincoln wool is greatly in demand, but the selection is becoming scarcer. May I mention, also, that wool should always bo packed iu good condition. We have experienced a great deal of trouble through wet wool which becomes stained in the course of transit to the centre of consumption. "I have no idea what prices for the coming season will be, but let us all hope for the best. Farmers would be well advised to sell their clips in the Dominion each year. We are not here to see clips sent to London, and graziers' know very well that they have been losing money by sending their wool to England for sale in the past few y'ears. The depression in Europe is general,

and quite different in type from that of 1920-23. Prices on this occasion will not recover so rapidly, and, in my opinion, will not again roach the high level.* of a few years ago." THE COMING SALES. PROSPECTS DISCUSSED. I THE PRESS Special Service.] AUCKLAND, November 17. The , prospects for the coining wool *ales are far from bright, according to Mr A. G. Copeland, one of the wool buyers, who arrived for the New Zealand season by the Niagara. He is representing Simonius Vischer and Co., with headquarters in Switzerland. "Growers will be lucky if they get Ja.st year's prices this season," he said. "I have been attending the recent sales in Australia, and the prices ruling there were low. Crossbred is a wool largely grown in New Zealand, and it is reasonable to expect that prices will be much the same here as there." Mr Copeland said he did not want to be the proverbial "wet blanket," but lie -iiiid baldlv that things were going to be bad. WJjile prices might be a little better in Napier and Wellington, the poorer quality of Auckland wool would prevent values from being much improved. Those who had held their wool over from last season for sale in the Dominion, in a hope that the market would have turned the corner, were likely to be disappointed. It would probably make matters worse for the new season's clip. In one way, low wool prices would do good, said Mr 11. P. Berry, a New | Zealand business man, who returned by ' the Niagara from Australia. Sheep-

farmers iu Australia would realise that wool was not to bo grown in any haphazard fashion. With prices flown, it would behove them to improve the quality of tlie wool, so tliat the best' possible prices would be obtained. When times wore prosperous a penny did not matter so much, but now the merest fraction of n penny had to be calculated. With similar conditions obt'iininf' all over the sheep-raising world, it seemed likely < hat the quality of wool generally would be better. WOOL SALES AT SYDNEY. GREASY MERINO MARKS 19d. •.CNITBJb I'KKSS ASSOCIAI-lOX " v KI.IUftRIC TELBCBAI-a—copiricht.) ( Ueceivcd November 17tl>, >5 p.m.) BVDN.EY, November 17. A l flic wool sales, the offerings were 10,103 bales, of which 9123 were sold. In addition, 571) bales were disposed of privately. The average, price of the wool auctioned last week was 8.3d per pouud.

All better-class wools tQ-day ruled tirtn. Competition was general, with rather better Yorkshire support. Greasy 1 njerino made l!>d. j WESTPORT COAL COMPANY. ANNUAL REPORT. The Will annual report oi' the directors ot tlie \\ est port Coal Co., Ijtd., for tlio year ended September JlKli last, is as follows :--- X «. il. The Mi'Olit lor the yc»i r, alter lor bud and doubtful debt?, deputation and all charges, amounts to £JT.97S I*3, to which must be added tlio sum of .£12,833 IGb 0d brought forward from last. | ytin-, making a total of •• 1",.*31. l- j Ah interim dividend of la per | share was paid for tho hull- j year ended March 31st, 1930 2-2,500 0 0 Lci.-.v'tv; >i 1.-alancc to be dealt 1 with oi ■- 18,331 IS fJ Out oi which the directors now pro Pom; : To a dividend ot 3d pt*r .share tor th* ended September ."»'.<th, Ifio) 3X-5 n 0 To carry forward to nest wear's account .. .• • 1*2,700 18 D JL 16.331 18 9 It i» uJm> proposed to pay sixpence per share from the insurance account. Should these proposals be adopted, dividend warrants will be posted nnmediaU'ly after the meeting. Tho mines and plant have been maintained iu the usual state of effii cieney. In terms oi the Articles of Association. Mr («. 1.. Denniston and Air Crosby Morris retire from the hoard, and eligible, offer themselves for l-e-elcction. The auditors. Messrs S Hislop ;md Ceo. M. Maclean, also

retire and offer themselves for reelection. Owing to failing health, .Mr C. H. Statliam felt compelled dtirin'-I the year to resipn his nosition a= auditor, and Mr C. M. Maclean appointed by the directors in his pi a ep. The following is a comparison of the operations over the last three vears: — io-2s i 9». mo. £ £ £ f; ' o-3 nrolit .. TJ/.fil ro.ftin Sf.-tt" To; profit 37,275 m.5.1l '15.97K PlvirJrnrl, per cent. Dividend, amount 50.GC5 tr»,nco Tr.nuriir.ee Purul * Sundry liabilities 225/U:* 232,10? 2:)0,0 So Property nccovnt, .. 9. Q 3,7r><> 272,572 T,oan* and invests. f100.792 331,157 551.624 Sink-in? fund .. L33.7.»0 138.7C0 U3,750 AMERICAN WHEAT MARKET. STABILISATION -MEASURES. (bNfl ED I'UESS ASSOCIATION —J3Y ELT.CTIUC TELEGRAPH —COPYItIGHT.) (Received November 17th, 7 p.m.) WASM'NGTON. November 16. . The chairman of the Federal Farm board. Mr A. Legge, declared that the de'eis'on of the Grain Stabilisation Corporation to enter the wheat market again lias been made in order to "stop "panicky .selling," and "to prevent further unwarranted declines" in dom- | estie prices. He said that "demoralisation in world grain markets" again exists, and added: "Comparatively, wheat is lowei in price than other agricultural products. The price ot flour fully reflects the wheat price, which no doubt is increasing per capita of consumption. While the visible supply of wheat is large, there is no congestion at any of the terminal markets. The receipts at the primary markets are unusually light, which suggests the extent to which farm stocks are being used tor feeding purposes. A further i price decline would be in sympathy with foreign markets, and not justified by domestic conditions." MINING. KING SOLOMON COMPANY. The following report has been issued bv the managing-director of King Solomon Deep .Lead, Limited, dated November 10th:— "Work is now being; continued in the shaft without interruption. Sinking operations provo without doubt the existence of a splendid body of wash carrying very nice gold of a bright, shotty nature. Dish prospects taken out of the shaft have given up to three grains to the dish, while the bottom of the wash is not yet in sight. A partial wash-up of Die dirt put through so far has returned over three ounces.-

"This is more than encouraging considering that the nearest prospecting hore is approximately fifteen feet away. This bore has disclosed very ijayable wash through a depth of six feet, and the indications iu the wash sunk in the shaft point to the lead being of a good width; "The ground is tight and gives every indication of standing well. It is expected that the bottom will be reached this week. All other work is well in hand, and there is ample water to wash all dirt brought to the surface.'' REILLY'S CENTRAL PRODUCE MART, LTD., DUNEDIN REPORT. Apples, Stunners Bs, lis, Delicious lUa, lis, Lord Wolselevs, French Crabs 9a; pears, Coles 2Jd, 4d: green peas, 7d; freneh beans, J-> 3d; ioiuatoes, firsts Is 10d, seconds Is 6d Is 9d, thirds Is Id, Is -id; gooseberries, choice 7d, medium 4d: whitebait '2s fd ; porkot- and bacon pigs 9d; asparagus, Gs, 8s; lettuce, choice , 3s, medium 2s, others 9d, 1* 3d; cau'iflowewr, 2s, 3s; cabbage, 2s 6d, Is: cucumbers, 1.2s 6d, 16s; spring carrots, 3.* 9d: /radish. Is; spinach, la Gd , white turnip*, 2s 3d dozen bunches; U.C.P.M. eggs la 2d.