WORLD FINANCE

Press, Volume LXX, Issue 21244, 16 August 1934, Page 13

WORLD FINANCE

GREAT BRITAIN'S RECOVERY AMERICA'S DIFFICULT POSITION It is a long time since world conditions have been so uncertain and the future appears to be surrounded with difficulties, comments the Julv review of H. Byron Moore, Day and Journeaux. the Melbourne s'tock brokers. The affairs of Great Britain are reasonably stable, continues the review, and considerable progress tn wards recovery has been recorded without undue political interference Unemployment is far less acute. mon£ lar.v conditions are easy, whilst tho volume of internal trade'has steadly increased during the last two year? mterest rates have fallen considerably and there is an abundant supply Z money to meet all purposes. If conditions in other countries were more .set,led it seems evident that Britain would renew her well established policy of long term lending. ollsnea American Problems The United States of America, apart from political uncertainty, is faced with colossal economic and sdßial problems which are not being assisted by it i serious drought in her middle and north-western states. Experimental legislation has in many respects been responsible for repercussion in trade and finance, and unless President Roosevelt's plans are modified it is certain that America will turn back rather than forward in her struggle to reach recovery and prosperity Her huge gold reserves are a menace to her own recovery because the advantages which normally would be gained are being discounted by complete lack of confidence everywhere. Fortunately there is a good deal of strength in the financial side of American industry mid when legislative interference subsides it is evident that r ovcrv will be rapid. Any further recovery in world affairs will undoubtedly be retarded by the uncertainty and distrust prevailing in Europe, and until more peaceful conditions prevail and the relationship between the Central European powers improves, no further progress can be made towards stability in world financial and tracing conditions Recent events seem likely to postpone indefinitely any plans which may have been under considera;:on for the .stabilisation of currencies and exchanges between the important countries of the world. Foreign Exchange Notwithstanding the unsatisfactory conditions of affairs on the Continent and in America, the foreign exchange market has remained steady during the last month. The steadiness in exchanges is all the more surprising considering that no decided movement has yet been made to ease the difficulties of international trade. The narrow movements of exchanges, concludes the review, however, may signify that some combined efforts to stabilise at or around present rates are contemplated in the nor future. Great Britain's refusal to meet her war debt instalment to America on June 15 last is full of significance, and is probably a preliminaiy movement in bringing about a definite decision in regard to future policy. It is evident that foreign exenanges cannot settle down to permanent stability until the war debt position has been definitely settled. One ui the chief features in the exchange market during the last two months has b :n the continued firmness in the United States dollar. The firmness may be due to America's policy in regard to silver, and her intention to maintain one-fourth of her monetary value in silver and three-fourths in gold. DAIRY INDUSTRY FEAR OF RESTRICTION ON EXPORTS U'BBH3 ASSOCIATION TELEGRAM.) FEILDING, August 15. The annual meeting of shareholders of the Cheltenham Dairy Company by resolution expressed appreciation of the action of the Government in raising the exchange rate, and also expressed gratification at the recent announcement that the rate would remain unaltered for the present. Mr C. G. C. Dermer (chairman), referring to the appointment of the Dairy Industry Commission, said the farmers were wholly opposed to a quota on export. The commission might do valuable work in reorganising the dairy industryHe said there were 19 factories between Rangitikei and Otaki, whereas three or four could handle the whole output for thjs area, and the dairy farmer had to pay for overlapping. Regarding quota restrictions, lie thought the threat to the pork industry was most serious. He hoped some arrangement would be reached involving no restriction on pork exports. The company has nearly £40,000 for bonus distribution. One small supplier suggested that £IOOO be given to the Feilding relief fund, saying that the dairymen had extracted the money through the high exchange from the people. His suggestion was received with smiles.

STANDARD INSURANCE COMPANY

TEAK'S DIVIDEND, 125 PER CENT. (THE PEESS Special Service! DUNEDIN, August 13. The directors of the Standard Insurance Company, in their report lor the vc-r ended June 30, state that the net revenue for the year amounts los; 171,300 3s sd, and the expenditure to £123.093 Is lOd, leaving a balance <it !'47 07:1 is 7d, to whicn has to be added ' llic balance carried *° rW£ ) l- « I rem last vear. viz., £23,853 Mfci lOd. makmt; a total of £71,527 0s sd. I'rom ih,,; an interim dividend was paid in March la;;', amounting to £ U,wU, l-.MVim; ;. balance of £59,027 0,; sci. 'i'hi.; balance has been dealt with m ih-- I nil*.win;.; manner: --Depreciation ':r,000 d'.'ialjon to staff Provident Kiiiid £1.330. allocated to reserve luua .:: 20,000. , , li is rccemmended that, the balance of £32,527 Os 5d be d.-all. with as fellow :--I'ay a dividend for the hah'.r:ir ended J'ine 30, 1934. at the rate of Is 3d a share, £12.500. and carry fcruaid lo next year £20,027 0s ad Full provision has been made 1:1 the accounts for all ascertained losses io the close of the year. The dividend of Is 3d a share will be payable at the company's offices immediately. . Messrs William F. Edmor.d and Ecl- ' ar C. Ha:'.lct.t retire from the direct ori '■.- ;.■ provid. d bv th ' arlic-s <'. '■ 'o-i---piion. Mo'd i-./c cl'..e ; ble and on---!h'-:;;/ l\-< :;. lor rc-eleclioll.