FINANCE AND COMMERCE

Press, Volume LXX, Issue 21315, 7 November 1934, Page 13

FINANCE AND COMMERCE

monthly review

STATISTICS FOR

SEPTEMBER

With two noteworthy exceptions—unemployment and building permits issued—statistics illustrating the state of business indicate a slackening in business activity since August, but an improved position as compared with September of last year, states the October Abstract of Statistics. The volume of bank debits to individual customers' accounts—usually a reliable indicator of financial activity— Shows a drop of 7.3 per cent, since August, and an increase of 8.7 percent. over the September, 1933, figure. The value of external trade shows a sharp fall, both exports and imports being considerably lower than in August—when unusually high off-sea-son totals were recorded. A slight excess of imports over exports of merchandise is recorded for the third month in succession, the cumulative excess of imports during the last three months being £251,000 measured in New Zealand currency. Features of interest in the banking statistics for the month are an increase in the ratio of advances to deposits, and an increase in the value of deposits on current account—the latter a most unusual occurrence at this period of the year.

Although banking, trade, financial, and railway transport statistics show, generally speaking, reduced totals as compared with August, the value of building permits shows a rise of as much as 70 per cent. In particular, permits for dwellinghouses have risen from 149 valued at £ 107,673 in August to 247, valued at £182,910, in September. This increase may be attributed to the stimulus to building activity resulting from the building subsidy scheme of the Unemployment Board.

Statistics of unemployment compare very favourably with the corresponding figures for 1933, the number a charge on the Unemployment Fund on September 29, 1934, totalling 61,489. as compared with 75,134 a year aso —a decrease of 18.2 per cent. On September 1, 1934, 63,012 men were a charge on the fund, so that a decrease of 1523 in number or 2.4 per tent, is shown as between the beginning and the end of that month.

The index number of market prices of ordinary shares (on the base: average of the year 1926 = 1000) rose from 952 at the end of August to 985 at the end of September. This index number which reached its lowest point in April, 1932, when the figure was 666—representing a decrease of 33.4 per cent, from the 1926 level of share prices, has since risen steadily. The improved profit earnings of many industrial undertakings in the last year has reflected itself in this index: but. undoubtedly, a major cause contributing to ihe increase in the market prices of ordinary shares has been the 'drop in interest rates on fixed securities. The yield on Government stock and bonds, for example, has fallen steadily since" the conversion in April, 1933. the 4 per cent, converted stocks yielding on the average, £3 13s 4d per cent, at the market quotations ruling at the end of last month. External Trade September is normally one of the lowest months of the year in respect, of the value of exports, and, consequently, it is not surprising to find a sharp fall in the total for last month from the abnormally high (for August) figure recorded a month previously. The September total (£2,447,032) is still, however, considerably higher than that for September of 1931 and 1932, and is 61'Vhtly ahead of the 1933 figure. The value of imports shows a substantial drop from the relatively high total recorded in August, but is slightly higher than the 1933 total. An excess of imports over exports is recorded for the third month in succession, amounting for September to £96.000 in New Zealand currency or £69,000 in sterling. During the 12 months ending with September. 1934, the value of exports exceeded that of imports by £20,400,000 in New Zealand currency or £16,300,000 in sterling.

Exports of butter increased from 124,097cwt in August to 205,544cwt in September, while cheese exported totalled 131,942cwt in the former month and 81,763cwt in the latter month. Exports of lamb and mutton during September were relatively light; particularly in the case of lamb, the export of which fell from 265.378 cwt in August to 109,339cwt in SepThe seasonal increase in activity in the meat-freezing industry does not normally commence before October. Banking , The average weekly value of bank debits to individual customers' accounts (excluding Government) fell by £838,813, or 7.3 per cent, in September, as compared with the preceding month; the September figure (£10.624,964), representing, however, an increase of 8.7 per cent, over that for the same month of last year. The decrease in this figure points to a lowered volume of business activity—a normal seasonal occurrence at this period of the year—but an improved Position as compared with that in September of last year. The total value of deposits (excluding Government), though still abnormally high, shows a decrease of £386,933, as compared with the record nigh level reached in August. Deposits not bearing interest showed a slight increase over last month's figure, while fixed deposits fell by £534,994. Advances showed an increase of £671,088 to £40.250,323 still an abnormally low total. The ratio of advances to deposits in September was 62.17 per cent, as compared with 59.95 in August, which ■was the lowest monthly figure on record. The steady improvement in the total Value of deposits on current account wiich has been a marked feature of banking statistics in recent months, ftas resulted in an increase in the ratio of free to fixed deposits, the percentage for the month of September being 54 37 Although this figure is much below that recorded in September, 1928 and 1929 (77 and 75 per c ent. respectively) the relatively low ratio at the present time has been Drought about practically entirely by he very substantial increase in "fixed deposits. The value of deposits on current account is now very littje be0W that recorded in corresponding months of 19?8 and 1929, and ij considerably higher than the figure for any month of 1931, 1932, or 19k. Sales Tax _ The amount of sales tax collected in September was £172,945, a decrease of £12,092 as compared with j?oi August total, but an increase of <~21149 over that collected ill September, 1933. The return framn this during the expired portion of «e current financial year is substantially ; n excess of the amount Realised for the same period of 1933-

WHEAT TRADING

CARGOES. PARCELS, AND

FUTURES

LONDON AND LIVERPOOL QUOTATIONS (UHITED TRESS ASSOCIATION—BY ELBCTEIO TELEGRAPH —COI'IHIGUT.I LONDON, November 5. Wheat cargoes are quieter and parcels easier. Futures are quoted:— r j s. d. s. d. ■London (a quarter) December .. 20 6 20 2 February .. 21 10 21 6 April .. .. 22 4 22 0 Liverpool (a cental)—December .. 5 1 5 0 March .. 5 4; 5 3'; May .. .. 5 6i 5 5i

LONDON MARKETS

HIGH COMMISSIONER'S CABLE

The Department of Agriculture has received the following cablegram, dated November 3, from the High Commissioner for New Zealand, London:—

Tallow—Market continues quiet. Values nominally unchanged. Hemp—Manila. Market quiet but steady and about unchanged. Sisal: Market firm with more interest shown. October-December shipment sold up to £l3 15s and December-February shipment £l4 2s (id. New Zealand: Nothing to report.

Eggs—Market quiet but firm. English, national pack 17s 6d to 235, ordinary pack 18s to 20s; Danish, 14s 6d to 18s; Australian, lis 6d to 13s. Peas—Maples: Market quiet. "A" giade Tasmanian afloat sold at from 45s to 465; New Zealand, 42s 6d. Blues: Market dull. No enquiry for colonial; nominal value is £9 10s.

BOOT AND SHOE INDUSTRY NEW ZEALAND PRODUCTION The boot and shoe industry of (he Dominion, according to the Abstract of Statistics, employs 2429 persons, in 71 establishments. The value of land, buildings, plant, and machinery is £365.747, Ihe salaries paid £336,39 i. The annual requirements of the Dominion in the way of footwear and the numbers of pairs imported and manufactured locally arc as follows: Produced in N.Z. Imports. Factories. Pairs. Pairs. 1929-30 .. 3,033.040 1,612,411 1930-31 .. 2.815,824 1,666,619 1931-32 .. 1.741.368 1,655,324 1932-33 .. 2,336.820 1.967,203 1933-34 .. 2,604,816 2,282,522 Value. £ £ 1929-30 .. 988,442 1,176,889 1930-31 .. 844,22!) 1.118,643 1931-32 .. 3,97,650 983,318 1932-33 .. 361,139 1,005,225 1933-34 .. 321,054 1,034,647 RAILWAYS WORKING ACCOUNT FIGURES FOR FOUR-WEEKLY PERIOD [From Our Parliamentary Reporter.J WELLINGTON, November 6. The financial results of railway working for the four-weekly period ended on October 13 were announced tc-day by Mr H. H. Sterling, chairman of the Government Railways Board. Expenditure increased by £92,055 and revenue by £26,367, resulting in a decrease in net revenue for the period of £65,688. For the portion of the financial year from April to October 13, expenditure increased by £212,048 and revenue by £202,145, resulting in a decrease in net revenue of £9903. The abnormal increase in expenditure for the period, Mr Sterling explained, was because the whole of the 5 per cent, increase in salaries and wages, which was operative form April 1 last, was paid out in that period. This represented a sum of £77,513. Adjusting the figures to allow for this amount, the expenditure for the period showed an increase of £14,542, and a revenue increase of £26,367, the increase in net revenue on this basis being £11,825 for the period. Similarly, adjusting the figures for the portion of the year up to October 13, the increase in expenditure would be £134,535, and with an increase in the gross revenue as already mentioned of £202,145, there would be an increase in net revenue, as compared with the last financial year, of £67,610. "Provided revenue keeps up as it has been doing during the first portion of the financial year," said Mr Sterling, "the indications are that the net revenue will not only be equal to that of last financial year, but will also go a long way toward meeting the additional amount required for the increase in salaries and wages, which for 7?? y® 3l ' ' s estimated at approximately £l/5,000."

THE MOST POWERFUL FACTOR IN COMMERCE

The chairman of the Anglo-Ameri-can Oil Company, Mr Frederick J. Wolfe, the head of an organisation which gives direct employment to over 9000 workers and has a share capital of £10,000,000, says:— "Although the diversified nature of our business necessitates the employment ot n'i3i.y forms of advertising, including extensive outdoor publicity, films and exhibitions, the greater part of our appropriation is expended upon newspaper advertising because long experience has shown us that is the best, quickest and most economical means of reaching the public at any desired time." Mr Wolfe asserts that well-planned advertising, supported by quality product::, is the majt powerful lactor in commerce to-day. There is, he says, no limit to its influence: it goes on ana on like the ripples on tiu water —"Marlborough Express." EGG SALE

Messrs Harris Bros., Ltd., report that thr- weekly sale of Feather Brand guaranteed new laid eggs was held yesterday afternoon. The prices realised were: Hen eggs, first grade (2oz or ever), lOd; hen eggs, second grade (.under 2oz), 9d. —8

SYDNEY WOOL SALES

HARDENING TENDENCY FOR SPINNERS' WOOL

MARKET OTHERWISE FIRM (united rnsss association—by electric TELEGRAPH —COPYRIGHT.) (Received November 6, 11.15 p.m.) SYDNEY, November 6. At the wool sales, 11,173 bales were offered, 10,852 sold, and 516 disposed of privately. The outstanding feature was the demand from Yorkshire for spinners' wools, for which prices showed a hardening tendency. The market otherwise was firm at the previous day's levels. Greasy merino made 18id. BRADFORD MARKET RISES GOOD VOLUME OF BUSINESS LONDON, November 5. The Bradford tops market is firm because of the German commercial debts agreement. Merino is Id dearer, and crossbred ;',d to Jd. A good volume of business is being done. COAL INDUSTRY GREY VALLEY COLLIERIES The tenth annual general meeting of shareholders in Grey Valley Collieries, Ltd., was held at the registered office of the company, Christchurch, yesterday morning. The chairman of directors (Mr R. B. Bell) presided, and the other directors present were Messrs F. R. Hogarth (Wellington), H. Morpeth (Auckland), Allan Smith (Greymouth), and H. Stansfield (Christchurch). The annual report and balance-sheet (already published) were adopted on the motion of the chairman and Mr Smith.

In moving their adoption the chairman said: "I have to point out that the annual report and balance-sheet do not stress the difficulties met with, which have, been even greater than those previously experienced. As stated in the report, the mine at Dobson was closed for over two months in the beginning of the calendar year; and, with the diminished market, the output for the period was again reduced. Having regard to this restricted output. and (lie heavy loss incurred through the explosion in January, your directors take some pride in the fact that the year finished 'all square' financially, after the substantial sum of £SOOO had been allowed for depreciation and adequate provision made for taxation, renewals, and future development. The general trade conditions from which the company has suffered for some years past arc unchanged, and unfortunately there does not appear to be any immediate prospect of improvement. The colliery is being maintained in a high state of efficiency, and development work underground is being continued well in advance of coal production. The coal being met with as (he development work proceeds is of the same high quality, and it is safe to say that the whole of the company's properly has never been in a better condition than it is at the present time. It gives me pleasure to refer again to the loyal support, and assistance given to the directors by the company's officials. Their respective tasks are not easy ones, and the events of the last 12 months have made them even more arduous than usual, so that they are fully entitled to your best thanks and appreciation." The retiring directors —Messrs R. B. Bell, H. Morpeth, and Allan Smith —were re-elected unopposed. Messrs Stewart, Beckett and Company were reappointed auditors.

On the motion of Messrs T. 11. Williams and P. H. Harris, a vote of thanks was accorded the directors and staff for their work during the last year.

At a subsequent meeting of directors Mr R. B. Bell was re-elected chairman.

BRITISH FARM PRICES

GENERALLY HIGHER LEVEL

British farm prices in August estates the "Daily Telegraph") reached the highest level recorded since January, 1932; and, if the wheat subsidy payments are included, they almost equal the figures of August, 1931. The subsidy policy was an emergency step to meet a desperate situation. It is satisfactory to have statistical evidence that it is fulfilling its purpose; but the future of agriculture will not be secure until it can pay its way unassisted—a development of which the steady rise in price levels begins to afford hope. The main cause of the advance is no doubt the change in British fiscal policy, which is having its effect on the demand for the products of our soil. ' Diminished production, too, whether it be due to deliberate restrictipn or, as over large areas of the North American continent to the harshness of nature, is helping to establish a balance between demand and supply. "One of the lessons which the crisis has taught is that this balance should be maintained not only in the world as a whole, but in our own island. There is a general desire to see British agriculture re-established, not as a remedy for urban unemployment, but as a contribution to the national wellbeing. Modern methods of transport are breaking down the division between town and country which was so marked a feature of English life in the last century. We have still far to go before the farm ranks with the factory as a pillar of the country's prosperity; but the evidence suggests that v/e are successfully taking the first and most difficult steps."

PRICE OF GOLD LONDON, November 5.

PRICE OF SILVER LONDON, November 5. Silver (pence an ounce) is quoted:— Nov. 2. Nov. 5. Spot .. .. 23 J 23 7-16 Forward .. 23g 23 9-16 PROPERTY SALE Messrs Ford and Hadfield, Ltd., report that following upon their having offered at auction the property at the corner of Hardy- street and Collingvvood street, New Brighton, comprising a five-room bungalow, they have sold it privately to Mr Hislop. —8

MINING

BLACKWATER RETURN (SPECIAL TO THE FBESS.) REEFTON. November 6. The Blackwater mines return for October was:— Crushed, 3705 tons, yielding 1789 line ounces of gold; value at 140s an ounce. £12,522. Working costs £6047, working profit £6475. development £716, capital £1306. The return compares with those of the preceeding two months as follows: Aug. Sept. Oct. Ore Crushed, tons 4000 3700 3705 Return, ounces .. 1897 1787 1789 £ £ Value .. 13,092 12,509 12,522 Working costs 6,161 5,800 6,047 Working profit 6,931 6,709 6,475 Development .. 664 682 716 Capital expenditure .. 1.025 1.131 1.306 NOKOMAI OPTION TERMS OF OFFER (PRESS A.SSOCIATIOH TELEGRAM.) DUNEDIN, November 6.

Mr Kum Poy, secretary of the Nokomai Gold Mining Company, Ltd., reports that the company has agreed to sell all its undertakings' and assets for the sum of £65,000 to the Nokomai Gold Dredging Company, Ltd. (London). The material terms of the sale are, briefly, as follows: —■ Fifteen thousand pounds in cash and the balance of the purchase money (£50,000) to be paid by the issue to the vendor company of 500,000 fully-paid-up shares of 2s each in the capital of the London company in addition. In consideration of the vendor company agreeing to sell upon these terms the third party agreed to pay, and has since paid to the company, the sum of £2OOB. This means that the total amount payable to the company in cash and shares is £67,008. The company has also received from Industries, Ltd., and the Vulcan Steel Construction Company, Ltd., respectively, deeds of release from all claims and liabilities by the company to either of these firms. ALEXANDER RETURN (SI'rCIAL TO THE I'IIESS.) REEFTON, November 6. The Alexander Mines clean-up for October was. for 280 tons of ore crushed, 1250z 16dwt melted gold. The cyanide treated 194 tons of rands for 440z lOdv/l. The bullion is estimated at a value of £1166. In addition 6.87 tons ol concentrates have been saved, valued at £203. In estimating the values, gold has been taken at 140s a fine ounce. TALISMAN 1)1 HBO MINES (UNITED IMM'.SS ASN'KTATIiiN -H? F.I.KITRIC TI;I.E<J K U'il COI'YKI'3IIT.) Talisman Dubbo Mines, Ltd., report having treated 67 wet tons, equal to 61 dry tons, for a return of £389. HELL-HOOPER COMPANY The report for I lie week ending November 2 states: — No. 2 Mine Area--Block Q. northwest of No. 3a north drive: 117 square feet of bottom was cleaned up in this block for good gold. East of No. 3a north drive: 85i square feet o£ bottom was cleaned up for fair gold. Values at present are patchy. At the start of the present panel, four cubic yards of wash averaged 2.0 dwts a cubic yard. Dish tests from the face indicate an improvement on this figure. A special sluice box is being rigged so that any single truck of wash can be treated for test purposes at any time. No. 4 North Drive —Cleaning up bottom in the deep gutter was completed during the period. Work was advanced five feet from 243 feet to 248 feet from the west drive. The bottom rose quickly to rail level. From 240 feet to 248 feet five cubic yards of wash were treated for lOdwt 2gr ot gold, equal to 2.183dwt a cubic yard (truck) or 0.272 dwt a square foot of bottom. The work is now finished. The face of the drive was advanced nine feet from 275 to 284 feet. A very large boulder was met with in the face, and constant blasting has been necessary to make any advance. The boulder is still ahead, and in the face of the drive. Owing to the difficulty in making reasonable progress work in this face has been stopped. The men have made a start driving east on water level at 200 feet north from the west cross drive. This work will prospect the ground just south cf the deep gutter at a place where gold was showing. This gold was not payable, but we intend to investigate the occurrence.

General—As stated previously, a special arrangement of a small sluice box is being rigged at the rail level at the mouth of No. 2 tunnel to treat truckload samples. By this means results of work being done will be more quickly available as a guide to mining and development work. The return for the week was 550z 13dwt Bgr.

WILUNA GOLD CORPORATION

Accounts of the Wiluna Gold Corporation, Ltd., for the year ended IVTaich 31 show dividends received from Wiluna Gold Mines, Ltd. (the Australian operating company) of £540,000 Australian currency, equal to £430,279 sterling. After wi'iting off the accumulated debit balance the net profit is £403,427, of which dividends of 4s 6d a share, equal to 221 per cent., absorbed £350,718, leaving to be carried forward £52,709. The positive ore reserves on August 31, 1934, were 1,786",000 tons, averaging 28s 6d a ton, an increase of 253,900 tons on the year. This is not including a large tonnage indicated but not yet developed. Except where otherwise stated the figures quoted are English currency. FUTURE OF GOLD AN OPTIMISTIC PREDICTION The "Gold-mining Record," published in London, is very optimistic regarding the future of gold. Quoting the opinion of the gold delegation of the League of Nations that the world's output of gold in future will not increase in the same ratio as the world's population and the world's trade, the "Record" states that, were it not for the gold premium and the consequent reopening of low-grade mines in the various goldfields, it is certain that by 1940 the gold shortage, even if all the world went "off gold," would reach uncomfortable dimensions. It expresses the view that there is not the slightest chance that any country will ever be able to return to the use

of gold coinage, and it maintains that gold will simply be kept in reserve in the vaults of central banks, only to be liberated for the settlement of international trade balances. The position is intensified by the great powers, excluding Great Britain "the ever-improvident," but particularly France, building up large gold reserves as a provision for war. The "Record" predicts that in 12 months the price of gold, which has already passed 140s, will reach 150s, in which case the British pound note will have fallen to about lis 4d.

STOCK EXCHANGES

AUCKLAND Sales on 'Change £ s. d.

Waihi Junction .. 0 4 4 Unlisted Stock Auck. Trotting Club, 1944, 6i per cent. . . 105 0 0 WELLINGTON Sales on 'Change £ s. d.

Unlisted Stock Woolworths, Ltd. (ord.) (2) 315 0 DUNEDIN Sales Reported £ s. d. Bank of N.Z. (late Mon. (3) 2 9 0 Nokomai .. 0 3 9 SYDNEY There was a firm tone on the Stock Exchange yesterday, prices in front rank Industrials being without much variation. Bank shares were in better demand, while Commonwealth Bonds were quiet owing to the near approach of the new internal loan.

WAR LOAN STOCK (m.rnsn official wimßLiss.) RUGBY, November 5. British 31 per cent. War Loan stock

LOIiNEVLILE STOCK SALE (i'llKStf ASSOCIATION TSLEGKAUS ) I N VKIiCAIUiIiJ;, November 15. Thero viTc smaller yanlings in all sections al, Iho Lorneville stock Palo to-day. Jn tho f;it shiM-j) jn;irk<'t there was cjniio a buoyant torn-; but the fat cattlo sale "was a ."lack one, although them were some very lino Hurts offered. The fat sale was n good one, and all classes showed an increase of about lis a head on last week's values. Prime heavy-weight shorn wethers made up to 25s 9d; prime quality medium-weights 22s 'Jd to 245; lighter down to 21s. Extra primo heavy woolly ewes up to 2Gs; prime heavy-weight 23s Gd to 255; medium 20s to 22s Gd. I'rimo heavy shorn ewes up to 20s Gd; prime quality 18s Gd to J.9s Gd; rough nnd unfinished down to 15s. In tho fat lamb section there was a fair entry of good quality lambs. The demand was good, and best quality sorts realised up to 20s; good quality 22s Gd to 2-ls; lighter weights down to 20s. Tho fat cattle sale was a. slack one, more especially for heavy-weight bullocks, these showing a decline of about 20s a head, while cows and heifers were also easier by about 10s. Prime heavy-weight bullocks realised up to .I'll; primo quality £8 15s to £10; lighter sorts down to XI. Kxtra privc heavy cows up to XI 10s; primo quality £5 15s to A"6 10s; medium weights £4 10s to £5 ss; rough and unfinished sorts down to £2. Prime heavy heifers up to £7; good quality .£5 15s to £G 10s; light-weights down to £5. KAIKOURA STOCK SALE There was a largo yarding of cattle at tho stock salo conducted by Pyne, Gould, Guinness, l-*td., on Monday, and therp was u good attendance of buyers Included in the entry were some good beef sorts, several good heifers, and a number of bulls. A large Hereford bull attracted much attention, his size being unusual. A line of 17 fat and forward heifers mado X.I 17s Gd, three heifers with calves £4 each, cow with calf £3 10s, four dry cows £1 each, heifer £1 2s Gd, 3 0 fat and forward steers at £3 15s each, 1-1 steers at £3 2s Gd each, fat cows £4 ss, 2 at £2 3 7s, 2 at £2 15s, 1 primo £4 10s, others from £t 3s to £1 10s. Jersey bull £4, Black-Polled bull £3 7s Gd, Hereford bull At 15s, pedigree Black Tolls £1 5s to £1 13s. Shorthorns Al 5s to £4 13s, empty cows, 2 at £2 ]ls, 2 at £1 os, 1 at £2 9s, fat £4 10s.

A few sheep woro forward and realised the following prices: Two ewe hoggets 24s Gd each, 22 owes and 20 lambs (all counted) 12s 9d, 2 fat owes 10s 3d, 2 hoggets 15s, 3 shorn M'ethers 18s Gd, others 19s (hi, 2:5 fat ewes 21s Gd, 10 at 12s 9d, 50 two-tooth ewes at lGs 3d, 8 "wethers at ir>s 3d, 10 at 17s. Sioro pig 21s Gd, 2 weaners 15s Gd each.

COMPANY NEWS

HUME STEEL, LTD.

The directors of Hume Steel, Ltd., are asking shareholders to endorse a reorganisation of the capital of the company. It is proposed that the present authorised capital of £500,000 divided into 50,000 (A) rion-cuniulative preference shares of £1 each, 100,000 <B) non-cumulative preference shares of £1 each, and 350,000 ordinary shares of £ 1 each should be reorganised into 250,000 fixed cumulative preference shares of £1 each, and 250,000 ordin- : ary shares of £1 each. The new pre- ( ference shares will carry a dividend of per cent., which will be cumulative . and the shares will be preferential as . to dividend and capital. Present issued and paid-up capital is £305,670 in 50,000 £1 (A) non-cu- < initiative preference shares, 5670 £1 (B) non-cumulative preference shares, and 250,000 £1 ordinary shares. The preference shares are entitled to participate with the ordinary shares in profits divided in excess of 10 per cent, on all issues, but dividends are not cumulative. AUSTRALIAN IRON AND STEEL Directors of Australian Iron and Steel, Ltd., have decided that no payment of dividend will be made on November 1. but they have advised shareholders that the improvement in trade has been maintained. Should this improvement continue they will consider recommending at the next annual meeting a payment on account of the arrears of preference dividend. The last payment of preference dividend was for the year ended November 30, 1930. For the year ended November 30, 1933. the company's net profit was £70,359, compared with £2203 the previous year. CLAUDE NEON LIGHTS (VICTORIA), LTD. Increased earnings are shown in the accounts of Claude Neon Lights (Victoria), Ltd., for the year ended June 30, net profit amounting to £2747, compared with £632 in the preceding year, and £I9OO in 1931-32. A dividend of 6 per cent, on preference shares and 2 per cent, on ordinary shares, payable on November 1, requires £2671. IMPERIAL SMELTING CORPORATION PROFIT FOR YEAR LONDON, November 5. The Imperial Smelting Corporation made a net profit of £154,984, and brought in £12,680. Preference dividends absorbed £134,538, and £33,126 is carried forward. FOREIGN EXCHANGES (Illtl'L'lSll OFFICIAL WIRELESS.)

EXCHANGE KATES The Bank of Now Soulli Wales, Christchurch, q u ntrd the following rates ruling yesterday for Iho sale ami pui'chaso of foreign exchange. Tin? rales arc subject to alteration without notice: — Buying. Selling. France —- Francs to XI N.Z. T.T. CI.S4 00.2-1 O.D. 01.8-1- 00.29 Noumea— Francs to £1 N.Z. T.T. «52.45) 59.49 O.D. 02.89 50.51 Papeete—-l-'riincs to £1 N.Z. T.T. 02.4!) 50.49 O.D. 02.89 59.54 Belgium—13elgas to XI N.Z. T.T. 17.533 16.833 O.D. 17.0153 10.848 Germany—lleichmarks to £1 N.Z. T.T. O.D. to XI N.Z. T.T. O.D. Switzerland — ... Francs to £1 N.Z. T.T. 12.j42 O.D. 12.017 12.152 Holland — Florins to .€1 N.Z. T.T. (i.Ohfl 5.819 O.D. 0.119 5.823 Ja FJ«ins to SI N.Z. T.T. (>.024 5.799 O.D. 0.074 5.803 Japan — ~ „„ N.Z. pence to yen T.T. O. D. Shanghai— N.Z. i>enco to dol. T.T. 19i -0 7-16 O.D. 19 203 India and Ceylon— . N.Z. pence to rup. T.T. 22 5-16 O.D. 22 8-16 22 19-32 Hon:,' Kong— r N.Z. pence to dol. T.T. „.j,j _4 10-lG O.D. 232 244 Singapore— _ „ „ „„ N.Z. pence to dol. T.T. 34 15-'32 3o 13*3-. O.D. 34 11-32 35 11-32 T.T. represents telegraphic transfers. O.D. represents on demand transactions.

USE OF IDLE CAPITAL

FALL IN RATES OF INTEREST DIFFICULTIES IN INVESTMENT MARKET The continued fall in interest rates is considered to be one of the logical outcomes of the position of stalemate in the New Zealand money market. It has been proving unusually difficult to coax money back into circulation in the Dominion, and for some years now capital has shown a marked tendency to disappear from active service. Most of it has been retired to the shelter of the banks with the result apparent in the high level of bank deposits and in the continued rise of gilt-edged securities.

In the meantime deposits accumulate, interest rates are scaled down periodically to new low levels, and the banks have only recently announced a substantial reduction in overdraft rates for best accounts. But this new inducement to borrowers is likely to accentuate considerably the slight improvement in the condition of the market which has recently been manifest. There is undoubtedly a greater inclination to borrow on mortgage and there are signs that prospective users of money are realising that at the present time conditions are decidedly in their favour. The keen response to the Unemployment Board's building subsidy scheme gives a clear indication of this manifestation. Rates Reduced Successive reductions in the rates of interest allowed by banks and those charged on advances have been made during the last four years. In 1930 the deposit rate for 24 months was 5 per cent.; now it is 2§ per cent. In the same period the overdraft rate was reduced from 7 per cent, to 5 per cent. On November 2 deposit rate for 24 months was fixed at 2J per cent, and the overdraft rate was reduced to 41 per cent, as from November 30. With the first signs of a depression, the banks usually call in credits, but they are now anxious to arrange further credits, where the security is sound. The banks wish to make deposits earn their keep and where they cannot profitably employ, they do not wish to accommodate. A case was reported recently of an Auckland bank rejecting an offer to place £IO,OOO on fixed deposit. This money would have been accepted four years ago. Those whose difficulties are increased because of the low rates of interest for first-class securities include trustees and sinking fund coirtmissioners, who have money to invest, but whose choice is restricted by statute. Naturally, legislation limits the investments to what are regarded as "safe" securities, the very class which now show most appreciation in capital value. This has involved many problems for the trustee and for those whose duty it is to provide an adeauate return on funds for the redemption of loans. In the latter case, a margin above the interest allowed on the loan is normally possible, but to retain this advantage is becoming increasingly difficult. Effect on Trade Evidence that trade and industry cannot yet offer scope for money is presented in several ways. Merchants and retail traders are carrying less stock than was customary and capital instead of being in a semi-liquid state "on the shelves" is being carried as cash. In many cases this cash has been used to turn overdrafts into credit balances at the bank and to finance repayments of capital to shareholders. Industry has not shown normal expansion during recent years, consequently there has been a reduced demand for financing extension of works and new enterprises. The suspension of widespread State and local body expenditure has also restricted enquiry for fresh capital; but in thi£ respect, too, there are signs of a revival of expenditure on productive work. It is claimed that interest rates have now been reduced to such a level that there is sufficient inducement to employ funds in more productive channels. Confidence in using the funds which have accumulated appears to be the major consideration and it is stated that there is at least a better feeling in this direction. No very marked change has developed, but the recent rise in the volume of imports is taken to indicate that traders are adopting a freer purchasing policy. In addition, investors are widening the range of their dealing on the Stock Exchanges and attention is being given to investment issues which previously were neglected.

Gold (a fine ounce) is quoted:— £ s. d. November 3 .. 6 19 10 November 2 .. 6 19 9 November 1 .. 6 19 10 October 30 .. 6 19 10?. October 29 .. 7 0 7"

Amalg. Brick (Auck.), 1944, 0 74 per cent. 105 0 Natl. Bank of N.Z. 3 11 6 Bank of New Zealand .. 2 9 0 Reserve Bank 6 11 9 South British 4 10 0 Goldsbrough, Mort 1 11 3 Australian Glass 2 16 3 Colonial Sugar 76 5 0 N.Z. Drug Co. (2) 4 0 0 N.Z. Newspapers 1 13 3 Wilson's Cement 1 14 0 Golden Point 0 0 1 J Goldfields Dredging 0 0 in Mataki 0 2 7

Insc. Slock—■ 3! p.c., 1935 (late Mon.) .. 109 0 0 4 p.c., 1940 date Mon.) .. 104 17 6 4 p.c., 1946 (late Mon.) .. 108 17 6' 4 p.c., 1949 (late Mon.) .. 108 17 6 4 p.c., 1955 (late Mon.) .. 113 7 C Wellington Gas, 6J p.c., 1941 104 10 0 Bank of N.Z. (D pre!.) .. 1 14 0 N.Z. Guar. Corp. 0 5 5.'. 0 5 <r Mosgiel Woollen 11 10 0 Rotoiti Timber 0 3 3 Monteith's Brewery 0 12 9 British Tobacco 2 1 8 Australian Glass (late. Mon.) 2 16 3 Mahakipawa Uatc Mon.) .. 0 0 9'

Morning Sales d. Commonwealth Bonds— per cent., 1942 105 15 0 4 per cent., 1944 107 12 6 Tooth's Brewery 2 11 9 Anthony Hordern 0 Mi 9 Associated Newspapers 1 5 10', Broken Hill Prop. ,) 10 (i Colonial Su^ar 70 15 0 Afternoon Sales Bank of New South Wales 22 0 0 Comm. Bank of Sydney .. 17 12 0 Natl. Bank (.CIO paid) .. 12 12 0 Colonial Sugar 70 10 0 Assoc. Newspaper:; 1 5 9 Assoc. Newspapers <prei.) 1 5 'U Howard Smith 0 16 2 Australian Glass 2 Hi (i Dalfictys 9 7 (i Winchcombe. Carso.n 1 9 <; Electrolytic Zinc 1 5 4', Farmers' 1 7 0 Anthony Hordern 0 l(i !l Lustre Hosiery 1 5 2 Standard Cement 0 1!) 0 Hume Pipe 0 14 0 Tooth's Brewery 2 11 0 Broken Hill Pro]). 2 10 2 Bulolo Gold f'» 5 0 Placer Development 24 5 0 Commonwealth Bonds, 4 p.c. 19::,", 10(1 12 9 1911 107 1SI 9 Hill 107 15 (1 1047 109 15 0 !!).->:; 111 17 0 1955 112 5 (1 1 957 112 o 9 195!) 111 2 9 1 or; I m 5 0

is quoted as follows: — £ s. d. November 5 105 2 6 November 2 105 2 G October 31 105 2 G October 30 104 18 9 October 29 104 1G 3 October 20 104 13 9* * Ex-dividerrl

Kl'GBV, November 5. i'ar. Nov. Nov. 5. l'aris, fr. to .i 1 12 -1.2 1 75 17-."2 75 25-3^ New York, .In!. In yy 4.son 4.07 : j -1.1)0 Montreal, iln). to .V 1. ■ I.SDii 4.S7 4.*7i Uru.-srls, bH-as !o .1' li 11 Cciicva, fr. to .5 I. 25.22 1 5 J1 .29 3 5.:;oi •\m>UM'dani, (1. lo .VI J 2.1 07 7.25} V.'IH .Milan, lire In 1 92. Hi r>« j-U5 58 11 -1) 2 IJrrlin. vcicli. jjurKrii to ,i 1 •jn. t:; 1 2.:;s 12.11 Stockholm, hi*. to X L 10.oOi Copenhagen, hr. I-. .VI J S.I ,V,) 22. 10 22.10 Oho, hr to .v 1 is.i.vj .1 9.!)U£ irutoi Vicuna, 1 < i .1' 1 ;M.:».sr> 2 <1 2(> : i I'rn:;ur, hr. lo !* 1 1 r, l io Mi 11 rj llrUin^'oi-. marks lo .i' I ;i 9:1.20 221 ii 22 Ci Madrid. las lo .i I 21.22 1i ;;fi 7-1r. :;<> H-IG dos to i 1 J I u iii 3 10$ Athens, (lra<'!t to VI 17 .1 5 < .120 UuehareM, 1. i to i'l si s.i ; IPS 498 Belgrade, dinars 1.22 i5 — 21.9 "Kin dp Janeiro x pt'lH'P 10 •1.892 ■ii n hiii'iiosAiros, pence to dol. 4.1.577 — u(>i Montevideo, licnci' to dol. 5 7 — yas Bombay, pcnco 3 8 1-1G to rupro 3 9 IS 1-16 Shanghai, pence t<» dol. * 3 0 1C lions Koti;:, pfm'f to dol. * 10^ 101 Yokohama, to yon 2-1.57 14 14 Warsaw, par zloJys to (> — — ]>atavia. truildcrs 11:. i M 7 — — * J)eti?rmined by prieo of silver.