FINANCE AND COMMERCE

Press, Volume LXXI, Issue 21483, 27 May 1935, Page 13

FINANCE AND COMMERCE

BETTER TRADE OUTLOOK GENERAL BUSINESS IMPROVEMENT FA VOL' KAV, LE IJ UTTER PROSPECTS I VHVIT MARKET GOOD j i-.tt •< elsctiuo n.rsi, .Al u —c-U'VUioirr.) ill, cc-ivccl May 20. 7.20 p.m.) LONDON, May 25.

T : c S!or!-: Exchange had to contend a number of worrying events last v,T t !:, r.otably troubles over the gold bloc, franco's continuous loss of gold aod the uncertainty aoout that country' ■ financial position, the Abyssinian .'.■•miation. and the announcement of t '<pans:on of the Royal Air Force, ■ viiii'h means that the heavy expenditure will impair the chances of any rilit'i from taxation.

Ti« reft:runco of the Chancellor of t.u- Exchequer (Mr Neville Chamfocr;iiij; to trade booming seems to have j i-i;i considerable justification, for 3 (. ports from almost all centres of industry mention increased business. Moreover, the latest evidence suggests That the improvement is likely to be maintained during the coming months. The increase in employment, during April was not only fairly general, but more marked than during the corresponding period of 1933 and 1031. The improvement was most pronounced in the coal mining, wool and textile industries. Increases were also recorded jo many other industries. including engi.ieerim;, iron found in;,', shipbuilding and repairing, electrical and cable apparatus manufacturing, cL'S mak'' l ':. jt.i'iinery, furniture Irndcs, cotton inaunfaclurinK. printing, bookbinding public works contracting, road transport., arid shipping. All d'striets ia the country showed a reduction in lUlemploymf■n ,

Improvement in Batter The butter market made a welcome recovery this week, prices of Australian and New Zealand advancing 4s. w..iie Continental varieties also hardened materially. There has been heavy buying, largely of a speculative character, as the statistical position is re;.'~rded as more favourable, smaller arrivals of dominions butters he-re coinciding with news of a further decl'iu: in production in Australia. The market was distinctly firm at the advance, and though stocks in cold store arc large, the outlook regarded as satisfactory for consumption has been well maintained. The cheese po?i--lon is by no means so favourable. There is little enquiry for Australian and New Zealand, even at the low prices prevailing, for English ehee:v j.: o.'entiful and very cheap, ""he demand for apples is increasing. I-' 1 ci orices realised were slight'v betIs.'. The quality of fruit is improving 'he season advances. New Zealand fruit is generally good. The pear trade nlso shows improvement, as supplies from South Africa are diminishing and the outlook for both apples and pears Is promising.

INTERNATIONAL WHEAT AGREEMENT COMMITTEE'S ADVICE (Received May 2b', 9.5 p.m.) LONDON. May 25. The Wheat Committee, submitting new terms for international collaboration. recommends th;; signatory Governments to continue the existing .framework until July 1, 1936. It will reassemble in October. .tecognising the failure of the wheat agreement because Argentina exceeded her quota, the advisory committee has evolved a new basis of co-operation, which is being submitted to the 21 tignatories. No decision will be made instil October, because the northern hemisphere output for l!)3f> will not be known before September.

WHEAT TRADING CHICAGO FUTURES NEW YORK, May 25. Cents a bushel. May 18. May 25, May ..90! «« : i July .. .. 91 i 873 September .. 91,T 88jj December 90;; Nov/ York (cash) 1091 106

BPRE A DING AUSTRALIAN

WOOL SALES

VIEWS OF BRADFORD

LONDON, May 24.

The •"Yorkshire Observer" forecasts that Bradford representatives attending the wcol textile conference in Berlin on June (i will urge spreading Australian sales over a longer period. Hitherto the bulk of ihe Australian wool has been sold over a t-hort period, forcing importers to buy a year's supply in a few months, and ihu.; risking subsequent price fluetuaui.iii.

LONDON MARKETS

'Received May 2G, 7.20 p.m.)

LONDON, May 25. Friday's closing prices:— Cotton—Spot. 7.01 d: June, fi.alid. Rubber —Para, 7 £d; plantation riaoked, (id ' Jute—May and June, £2O ss. Copra-—May and Juno. South Sea, K\2: smoked, £ll 17s (id; plantation Rabaul, £l2 12s (id. Linseed oil—£23 las. Turpentine—£2 14s.

PUBLIC AUCTION OF LAND

H. Matson and Company report having offered at public auction on Saturday last, in their Tattersall's land talc room, the property of 130 acres, .situated at Governor's Bay, Allandale, belonging to the executors of Mr Daniel Bamford. This property was passed in at £l3 an acre to the bid a 1 Mr Jrwnh Wall is Clc.vpr rnr\ R:iv.

DAIRY INDUSTRY EFFECTS OF HOT SUMMER SOUTH ISLAND ASSOCIATION'S REPORT

The unusually hot summer is blamed in the annual report of the South Island D?.iry Association of New Zealand, Ltd., for the smaller percentage of high gradirigs of butter and cheese in the South Island. The report, which will be presented to the annual meeting of the association in Dunedin on Jure 5, states: — The profit and loss account shows a credit balance for the year of £S3 lis 3d. As usual, all reasonable provision has been made for depieciation in the value of goods in stock and other, assets. We recommend that the surplus of £B3 lis 8d be transferred to the capital fund account, which will then amount to £14,341 12s 7d. For some years now the surpluses on the profit and loss account have been small as compared with previous vcars, when conditions made it possible to set aside substantial sums for the building up of the capital fund. Since 19?3 expenses have been reduced by as much as 30 per cent., but the fall in revenue has been greater. It docs not seem possible to cut down expenses further without curtailing the service which members are now receiving, and if the association's prosent financial position is to be maintained we must have the full support and co-operation of all member;!. There are now 103 factory companies on the register, being one less than the i revious year. A comparison of the gradings for the North and South Islands fol" the last year shows:—

Finest, First, Second, p.c. p.p. p.c. North Isl"nd 77.83 20.77 1.40 South Island 74.51 23.03 2,4(5 The South Island result is disappointing compared with 1933-34, when the percentage of finest grade was 90.12. The unusually hot weather experienced during a long period of the season and the difficulty in keeping the cream cool and fresh under such conditions was no doubt the main factor in the decline, arid we suspect •' Iso lhat the position was influenced in a lesser degree by the graders setting a higher standard than formerly. Cheese The following is an analysis of the cheese gra igs for the year:— Finest, First, Second, p.c. p.c. p.c. Whole Dominion 21.81 75.07 3.12 North Isle rid 19.57 77.43 3 South Island 31.81 64.49 3.7 The relative particulars for the South Island ports are:— Finest, First, Second, p.c. p.c. p.c. Lytteltou .. 37.23 (51.24 1.53 Timaru, .. 23.23 7G.40 .37 Dunedin .. 25.72 73.17 I.H Bluff .. 32.97 (52.5 1 4.52 The finest grade percentages for the previous year were: Dominion, 21.27 per cent.; "North Island, 19.5 per cent.; South Island, 4(5.9 per cent. As in the case of butter, the drop ii tilc average quality of the South Island cheese output can be attributed largely to the i civcrsc weather conditions, and also as with butter partly to the higher grading standard which we believe was applied.

Marketing Regulations The Dairy Produce Board will no doubt acquaint the iridustry in due course with its conclusions regarding the results of the regulations which have been in operation during the present season. As you are aware, the factory outputs for the season were allocated by the board to'certain consigning agents in the United Kingdom who are members of the New Zealand Dairy Produce Importers' Association, the basis of the allocations being the quantities handled by the respective' agents for the previous year. One of the principal objects of the regulations is to. ensure that no agent shall receive qu; ntities of produce for sale in excess of his capacity to dispose of nme to the best advantage. The allocations. however, are subject to subsequent f.o.b. ;nd c.i.f. sales. Factories may effect such sales through agents other than those to whom their outputs have been allocated on consignment, and it seems to us that this must nullify the object aimed at. The experience this season has been that as the result of f.o.b. sales which took pbee, some r,gents have had their aliocroons considerably reduced, whilst others who made f.o.b. purchases will handle quantities much in excess of their allocations. That is a matter which we think will have to be rectified if the board's scheme is to be a success.

The commission appointed by the Government in April last year to investigate the position of the industry submitted its report in October. The task which was set the commission was a difficult one, and took longejf than was anticipated. The time occu-» pied however, was fully justified by ; the result which was the production of a report giving a most complete survey of the industry and its many problems. The members of the commission and the officials who were attached to it are deserving of the best thanks of the industry for the most thorough and efficient manner in which l hey carired out the onerous duties entrusted to them.

Helping- the Industry Following on the conclusions arrived at by the commission, and the recommendations made by it, the Government has taken some measures to'restore the industry to a satisfactory position. A Commission of Agriculture has been set up for the purpose of co-ordinating the work of the various produce boards; the Dairy Board has been reconstructed; the legislation has been passed providing for the adjustment of existing farm mortgages and the establishment of a system of long-term mortgage credit. Financial provision lias also been made for the improvement of dairy farm and factory equipment as referred to earlier in this report. Early in July last the Government, at the request of the Meat Board, placed an embargo on the export of "bobby" calf veal. The British Government had represented to the board that it desired a reduction of our meat exports to Britain, and the board decided that the request could best be met by putting a stop to shipments of boneless veal and beef products which concerned the dairy industry, and only in a very slight degree the interests represented by the Meat Board. We made a strong protest to the Prime Minister, and representations were also made by the Dairy Board and other bodies, but the embargo was not removed. and si ill remains it> force. Boneless veal has a special outlet in Britain, nad does not come into competition with other meat products. The action of the Meat Board has served no good purpose that wo can see, but it deprived the dairy farmers of a considerable amount of hard cash which they could very well do with in their present circumstances. We estimate the loss at about £120,000.