FINANCE AND COMMERCE

Press, Volume LXIX, Issue 20988, 17 October 1933, Page 11

FINANCE AND COMMERCE

CONDITIONS IX AUSTRALIA GENERAL IMPROVEMENT DECLINE IN UNEMPLOYMENT A cheery note is struck in the October Monthly Review of H. Byron Moore, Day, and Journeaux, stock broker.-', Melbourne. Official statistics, it states, reflect the general improvement in Australian conditions during the last 12 months, and not for more than tour years lias such confidence been shown in Australia's future outlook. Overseas trade has shown satisfactory ;-:r<!\vth, although owing to higher imports the surplus is a little less than 12 months ago. Average weekly clearances of the Australian trading hanks, savings bank deposits, quarterly banking returns, building permits, motor-car registrations. Stock Exchange- quotations, company bal-ance-sheets and profit and loss statements, and gold production, all disclose satisfactory improvement, and indicate i lint more prosperous conditions are slowly returning. Unemployment, although still one of our greatest problems, has steadily declined during recent months. It is quite impossible to apply any quick and lasting remedy to this social malady, and only by increased spending and a greater velocity of credit can the workless be absorbed into the normal channels of industry. That this process has commenced there can be little doubt, and by a reverse action to the vicious circle which lost thern their regular employment they will be slowly drawn back into a ciicle of a different character. Future Borrowing'.

The Federal Loan Council will meet before the end of this year to discuss further borrowing to finance the works programme of £17,3-18.000 agreed upon at the June meeting of the Loan Council in Melbourne. In May last the Commonwealth issued a loan of £5.000,000 at ?>'■; per cent., which was quickly oversubscribed, the total subscription being £8,500.000, the whole of which was retained towards the total amount to be raised during the current financial year. The market is favourable for the issue of a further loan in the immediate future, but probably the Loan Council will be sympathetic to the trading banks and the heavy commitments they will be called upon to meet in financing the present season's wool clip and wheat harvest. Consequently the council may not approach the market until the New Year, when a large portion of the wool clip will have been disposed of. The finances of the Commonwealth with the surpluses being derived on ordinary revenue items are in a comfortable condition, and no difficulty should be experienced in temporarily financing works commitments during the next few months.

The savings to be effected in overseas interest payments due to a series of successful conversions to a lower rate of interest, as well as a further postponement of war debt payments, will offer material relief to the budgetary position of the Commonwealth and States, whilst income tax and sales tax revenue due to the improvement in general trading conditions should enable all the Governments to keep well within the limits of the Premiers' Plan. Favourable Pastoral Conditions. Following excellent early spring rains throughout most of the important pastoral and wheat growing areas, seasonal conditions are particularly favourable, and all fears of drought have been completely allayed. The wool sales have opened with considerable strength, and although the clip will be smaller and lighter, the increased prices being obtained for all classes of wool will more than compensate for any deficiency in returns. Wheat prices are a little easier, and the future is somewhat obscure. The reduced acreage and yield in the United States and Northern America, however, should prevent any dumping of surplus stocks, and ultimately the healthier statistical position should result in firmer prices. The immediate outlook in Australia is indeed promising, but we cannot overlook the trend of events abroad, because we are almost entirely dependent for our prosperity upon a return to higher prices with some degree of permanency. At present world conditions appear to be difficult, but a favourable turn in events may occur at any time.

PUBLICITY FOR COAL

,£70,000 CAMPAIGN IN ISMJLAM)

A publicity campaign, in British {national newspapers and fuel exhibitions to cost £60,000 to £70,000 in the first year, and having for its object the restoration of prosperity to the coal trade, was announced by Mr W. It. Gordon, director of the Coal Utilisation Council, at a luncheon in London recently. In using the press for the purposes of advertisement, Mr Gordon said, it was clear that the appeal could not be just "burn more coal." It must be of a definitely educational nature. It "was intended to use national papers, and also to participate in various important exhibitions. "Trades such as drapery, cigarettes, beer, whisky, motors, and wireless — all of them big users of advertisinghave suffered less during the depression than the non-advertising trades such as coal, iron, steel, cotton, and Wool. "The recent exhibition at Olympia Bhows how powerful a weapon for good constructive advertising can Jjc when wielded by competent hands.

NEW ZEALAND APPLES COMPLAINT ABOUT TOOK ADVERTISING (i':;r.ss as-o''iatig:i telegram.) WELLINGTON, October 16. Disappointment at the manner _in V'hich New Zealand apples arc being advertiser! in England was expressed by Mr G. E. Fownes, who returned with Mrs Fownes by the Mnratna from a health Inn Home. He said that during the whole of his stay in England he saw onlv one big advertisement of New Zealand fruit, and that was an old one. He undci-dor.d the (rouble lay in Riving tin: distribution to one firm. A Covent Garden merchant with whom he had spoken told him that under the Previous arrangement New Zealand fruit went into many of the high-class restaurants and hotels, but now it was Probably verv difficult to get it at a ny of those places. The merchant added that he considered New Zealand apples to be the best graded of all overseas fruit, and regretted that the original arrangement was not still in operation. The merchant mentionel that he was 6 leaving lor Canada to arrange for anadian apples to be sold on the Eng--3h market, although he very much t referred not to compete with New 'Saland apples, of which his firm had sold many thousands of cases.

WOOL TRADE ENGLISH MARKET BRADFORD PRICES RISE SLIGHTLY (UNITED I'HBSS ASnOCTATIIV—T.T ELECTRIC TXLEGRAI'H- -COPYRIGHT.) LONDON, October 15. Mr W. Devereux, representing the Australian Wool Growers' Association, reports that Bradford prices for merino tops moved against buyers. Some business was transacted, and the output was maintained. There was business in medium and line crossbred tops, with slightly higher prices, and crossbred yarns were firm at last week's level. There was a rather better tone about the market, with more enquiry but little new business from the majority of the Continental markets, which are somewhat disturbed by political and currency complications. Sales of tops to Germany lately have been only moderate. Continental futures markets are more active, and the recent decline in quotations has been recovered.

PRODUCERS' COSTS IN QUEENSLAND

(Received October 16, 11.5 p.m.) BRISBANE, October 16. Mr J. Bridgen, Director of the Bureau of Industry, computes the cost of producing wool in Queensland at approximately 12£ d per lb. He adds that even if 15d were guaranteed, seven or eight years would have to elapse before' the growers recovered the losses of the last four seasons.

FLOUR MILLING IN BRITAIN INDUSTRY REROUTED TO BE PROSPERING I.THE PRESS Special Service.) WELLINGTON, October 16. A through passenger by the Marama was Mr J. Cadwalladcr, managing director of Mungo, Scott, Ltd., flour millers, of Sydney, who has been abroad for the last seven months. The flourmilliug industry in Britain, he said, was very prosperous at present, owing to the rationalisation scheme. All the small mills had been taken over by three big groups, which now controlled the whole industry. The output was regulated by demand. The industry in Canada was not flourishing, owing to "cut-throat" competition.

COMPANY NEWS AI STKALIAN DIVIDENDS Edwards Dunlop and Co.. paper merchants, Sydney, has declared a dividend at the rate of 6 per cent, per annum for the quarter ended July Til. Interim dividends for the half-year ended August 31 have been declared by Wunderlich, Limited, metal ceiling manufacturers, Sydney, as follows: — On ordinary shares at the rale of 8 per cent, per annum, on first and second preference shares at the rale of 7 per cent, per annum, and on the third preference shares at the rale of 7 per cent, per annum, calculator! as to 5s a share as from May 31, and 5s a share us from June 30, equal to lis 7d for 100 shares. British Tobacco Company (Australia), Ltd., has declared a dividend on preference shares at the rate of o'. per cent, per annum for the three months ending October 31, payable on October 31, subject to deduction at. live rate of 10 per cent, for Commonwealth property tax. FARMER and CO., LTD. The profit of Farmer and Co., Limited, Sydney, a retail soft goods organisation, shows a substantial increase for the year ended July 31, compared with the profit of the previous year. The profit, after paying debenture interest is £ 33,892, compared with £11,105 for 1931-32. It comes within £6103 of paying £12,000 to the first preference shareholders as dividend, and £28,000 to the second preference shareholders.

CLAUDE NEON LIGHTS (N.S.W.) Not profit of ,1:443!), revealed inaccounts of Claude Neon Lights (New South Wales\ Ltd., for the year endnd June 30 lost, compared with A-3923 cleared in the previous 12 months. With the balance brought forward the total for appropriation was ■i.obUt. uivile id at the rate of a per cent, recommended by the board was approved.

SOUTH BRITISH INSURANCE COMPANY DIVIDEND UNCHANGED [THE PRESS Special Service] AUCKLAND, October 16. An increase of £4207 to. £64,462 in the underwriting surplus is disclosed in the accounts of the South. Bntisn insurance Company, Ltd., for the year ended August 31. However, the income from interest and rents at £122 925 is £9982 lower, accounting for the reduction in the total available of £5775 to £187.387. The dividend for the year is unchanged at 2s od a share. . . ~ The net premium income tot t.m. period amounted to £791,537, which with interest and rents received and accrued, after payment of income, tax, £122 925, makes a total ot £914,462. After making full provision for losses outstanding and for taxation, there is a surplus in the underwriting account of £64 462, making, with income of £122 925 from interest and rents, a total'available of £187,387. The total has been dealt with as follows: Amount written off company's premises £40,000, leaving available £147 387. Out of this amount an interim dividend of Is 4d a share, absorbing £68,776, was paid in April. The directors now recommend the payment of a final dividend of Is 4d a share (making a tot distribution for the year or 2s 8d a share), whic'.i will absorb a further £68,776, making a total of £137,55.'-!. Tins leaves £9835, to which is added the balance from August 1932. less the dividend paid in October, 1932, £203,431, making to be carried into the new accounts £213,267.

MEAT EXPORT

.STOCKS ON HAND The New Zealand Meat Producers' Board supplies statistics of stocks of meat on hand in New Zealand as at Octboer 1, 1933 and 1932: 1932-33.1931-32. R .. f rnmrters) .. 145,489 28,075 Ewe carcases •• $853 81279 Lamb ■• 2G 057 8956 Porkers •• 4444 1]20 5 Eaconcrs •• 3522(J 49008 Boneless beef •• y 65 03 g Sundries _ •• J - x^°"