INTEREST IN STERLING

Press, Volume LXIX, Issue 20957, 11 September 1933, Page 13

INTEREST IN STERLING

NEW ZEALAND ],OANS LONDON COMMENTS (vhom t- 1 f: c.v.v «"«'»i:i!r,sror:riK*S"T.) LONDON, August 0. Under the heading "New Zealand's Example," the "Sunday Times' " financial editor remarks:— "In these days when contracts are honoured in the breach as well as j'i the observance, a good impression has been created in the city by the decicision to pay interest on Otago Harbour Board loans i i sterling instead of in New Zealand currencv whicn would have meant, a 20 per'cent loss to holders. A similar decision in th« case of the Auckland tramways loan is now awaited. The Julv 'interest was paid in New Zealand currency owing to the decision that this was the only legal method of payment But the New Zealand Government has promised to introduce legislation to validate payment in sterling. By recognising this moral obligation, NewZealand has set an example to other borrowers who have proved less scrupulous." Auckland Tramway Issue. The "Daily Telegraph's" city editor wrote:— "The Otago decision has naturally aroused the hope that the city of Auckland will revert to its practice of paying the interest on the tramway loan in sterling instead of in New Zealand currency, and that an adjustment will be made in respect of the v'July 1 interest payment. It should s>e recognised, however, that this question is not identical with that of the Otago Harbour bonds. "In the latter case the point at issue was whether the statutory reduction of interest on internal loans Should apply to holders domiciled outside New Zealand. While it was lot the Dominion Government's intention jto apply the deduction to non-nationals, difficulties arose in cases where loans held by nationals had been sold to non-nationals after, and even before, the bill was passed. That question has now been settled satisfactorily. "As regards the tramway loan, the question was whether the interest should be paid in English or New Zealand currency. Although the offer for sale was made in London, it was contended that the loan was an internal issue, and that the interest was payable in New Zealand currency. "Whatever may be the legality of this contention, there would to be a strong moral obligation to continue the payment of interest in sterling. A few weeks ago the New Zealand Premier promised that, where there was a moral, if not a legal, obligation on local bodies to meet obligations in London in sterling, the Government would introduce any legislation that, might be needed to validate payments in sterling. Holders of tho tramway loan naturally wish to see this promise fulfilled as soon as possible." ' WOOL SALES AND EXPORTS LARGE INCREASES SHOWN The improvement in the wool market is reflected in the greatly increased quantities offered and sold in New Zealand since July 1. During the two months ended August. 31, 17,116 bales were offered, and 16,417 bales were sold, compared with 3623 bales offered and 3450 sold during, the corresponding period of last year. Of the total for the two months, 13,325 bales were offered, and 12,641 sold last month. The detailed figures for the two months compare as follow: —

There has been a large increase in the exports of wool during the last two months, according to figures compiled by Dalgety and Co., Ltd. Shipments for the two months ended August 31 totalled 50,807 bales, compared with 29,658 bales for the corresponding period of last year, an increase of 21,149 bales, or more than 71 per cent. Shipments last month were 17,022 bales. . . WELLINGTON SKIN MARKET ADVANCE IN PRICES In sympathy with the improvement In value of wool and woolled skins, in Australia and London, prices at the Wellington sales on Friday showad advances on sales held a fortnight ago of Id to Id for coarse woolled skins and Id to IJd for the finer woolled skins. Extracts from brokers' reviews of this sale are quoted as follows: , 'Good general competition for all lots submitted. Fine wools keenly competed for, and as compared with late rates, prices appreciated Id to l|a. Medium and coarse wools sold excep- / tlonalljr well at prices 3d to Id better. Only a few salteds were submitted—not sufficient to quote. Competition exceptionally animated, With a general advance in values all round. Medium and coarse sheepskins were Jd to 3d dearer, fine Woolled lots advancing fully Id. W "Halfbred were about l*d per lb \ #er; salted about 6d each higher. f The official range of sheepskin prices "Was as follows:-™ , = , , tn .Dry Sheepskins—Halfbred, sid to 9 id per lb; fine crossbred, 5Ad to 9d, medium crossbred, 51-d to 7Jd; .coarsecrossbred, 3i|d to 6d; half-wools, jo 1U; quarter-wools, 2',d to 4d; pelts, l A$ to 3d. Salted skins— Three-quar-terwools, 2s 9d to 4s Id; full wools, 3s 6d to 4s 9d; lambs, 2s 3d to 3s. BRITISH TREASURY BILLS (BIUTI3H OFFICIAL Wt£UstßS3.# (Received September 10, 5.5 p.m.) RUGBY, September 8. for tenders for Treasury «Uls were opened to-day at the Bank S England and totalled £72,205,000. , l M ne amount allotted in bills at three 'months was £45,000,000. The average £tte per cent, accepted was 6/7.34 d "-ompared with 7/1.95 d last week. fWROL WAR IN OAMARU I 01 l Friday there was all the neces- ' ®*y evidence to indicate a petrol war m ? amaru ' as thef e were at least four 2 1 . vehicles carrying signs annXPi Cing substantial reductions in the *«»« price of petrol offered by the ■ linS"?' flrms - The prices quoted were ' On* 4 lor , first 2 r ade and Is 8d for secmS a reduction of 3d a IBS** *»«w the last tbxefi days. '

1933-34. 1932-33. Bales. Bales. Bales. Bales. Timaru .. 383 383 57 57 Christchurch 2,858 2,807 404 41S Blenheim .. 28 25 __ — Wellington • 4,844 4,870 2,010 1,823 Wanganui .. 4,214 3,874 607 607 Napier .. 1,894 1,853 39 39 Gisborne .. 890 873 17 17 Auckland .. 2,005 1,932 489 489 17.116 16,417 3,623 3,450