DRAPERY IMPORTING COMPANY.

Press, Volume LXVII, Issue 20381, 30 October 1931, Page 12

DRAPERY IMPORTING COMPANY.

annual meeting. I THE PRESS Special SerYie«,i DUNEDIN, October 2£>. Addressing the annual meeting of shareholders in the D.I.C. to-day, Mr E. I. Halsted, chairman of directors, said: "After a succession of years of prosperity and good balance-sheets it is not pleasant to present to you to-day figures which are less satisfactory to us all. I need not dwell on the conditions which have prevailed during the past year. They are only too well known to you all. Unremunerative and continuously falling prices for all our primary products resulting in growing unemployment, retrenchment, and smaller spending power in all sections of the community have told their tale in all balance-sheets, and in ours amongst the rest. It has been an anxious year for the Board and easily the most difficult and worrying year managers and staffs generally _ have ever experienced. Under the circumstances all our branches have kept up their figures exceedingly well, and your directors consider that the results achieved ai'e as satisfactory as could possibly be looked for. I trust that shareholders generally will endorse this view. "The net profits for the year, £19,227, are sufficient to pay the preference dividend and leave a surplus of £4227. After anxious consideration the Board decided to recommend the payment of a 5 cent, dividend on ordinary shares, which will require £8976, yid will absorb £4749 more than the year's profits. The balance of profit carried forward w T ill thus be reduced from £45,178 to £40,429. This sum, together with the reserve fund of £85,143, will leave us with reserves of over'£l2s,ooo, the same position as we were in two years ago. Considering these substantial reserves, the strong financial position we hold, and the conservative dividend policy always pursued, I think you will agree that we are justified in paying 5 per cent '"' The Outlook. Touching on the outlook, Mr Rulsted said:—"The current year, of which two months have already passed, has not started too well, but your directors look forward full of confidence and hope. The election in Great Britain has returned a strong Government to power with an overwhelming majority, and we can look forward to a period of stability and sound finance which should materially help to restore confidence not only in Great Britain but in Europe generally. We may expect a helpful policy towards the Dominions and a desire to foster Empire trade either by preferential tariffs for our produce or in whatever other way seems most desirable. In the past few weeks we have seen a substantial rise in wool, cotton, metals, etc. If this movement continues and prices settle down on a stable basis, we shall very soon see a reasonable amount of prosperity in which New Zealand should be amongst the first to share. I trust that when we meet again a year hence it will be under much brighter and happier auspices." The retiring directors, Messrs I**, l. Halsted and I. S. do Beer, were *eelec^ed.

bycrofts, limited. [THE PRESS Special Service.] AUCKLAND, October 29. Bycrofts, Limited, has declared &n interim dividend of lid per share, the same rate as last year. EXCHANGE RATES. AUSTRALIAN POSITION. Contrary to general expectations the Australian exchange rates on London have not been altered Bine© England's departure from the gold standard, and the subsequent depreciation of sterling, says the October Beview of Messrs H. Byron Moore, Day, and, Journeaux, Melbourne stockbrokers. The rates for telegraphic transfer business are £l3O for buying and £l3O 10s for selling, although a few minor alterations have been made on time contracts. The outside market has followed a more natural course, and quotations are now below the carded rates. During the month private business' was arranged at £l3O 5s and £129 12s 6d, with a good supply of money available. During the past two weeks the banks have had several conferences and, in addition, have consulted with the Prime Minister and Federal Treasurer on the question of a reduction in rates. Although nothing has yet been officially arranged, it has been stated that it would be inadvisable to make any substantial reduction in rates at the present time, and any movements in tlie near future would have to be narrow, with a probable downward tendency. The present position is perplexing and difficult to follow. The exchange rates of other countries have been readjusted to a new level since sterling depreciated, and fresh day to day quotations are being made, according to sterling movements. The London-Australian rate is being pegged to assist the primary producer, but it is questionable whether this position can be maintained when Australia's exporting season is well advanced. The higher commodity prices in London coupled with the strong tendency for overseas capital to return, are factors which eventually must create a surplus of London funds, and permit economic forces to adjust the rate to its correct level. Unless sterling makes a sudden recovery in the near future, it is obvious that a substantial reduction in the London-Aus-tralian exchange rate must eventually take place, probably through the influence of the outside market.

PRICE OF SILVER. 'BamsH omcut, wireless.) (Received October 29th, 5.5 p.xu.) RUGBY, October 28. Silver is quoted:— Spot and forward—l 7 5-16 d an ounce.