FINANCE AND COMMERCE

Press, Volume LXXII, Issue 21903, 2 October 1936, Page 13

FINANCE AND COMMERCE

wWvWffy ' '—-r 11 s i - |||pADAIRV : AG(X) ENT HIGHER STOCK EXCHANGE ACTIVE -f • v '■ l/f?* A The weekly figures of the Reserve Bank show an increase b payments of £201,100 in the dairy account, which has now £1,000,000. The noteissue is £19,700 smaller, and a decrease in demand liabilities to the State of £52,100 is shown. «fjfemaad liabilities to the bmiks are £219,900 higher, and other to; c demand liabilities have increased by £50,700. Sterling exchange held is lower by £BB,OOO, and coin by £1700.* Invest- ’ bents have increased by £87,700, There is no change in the 'amount of advances to the Government for purposes other than th® dairy account » the figure remaking at £ 700,000. - The Stock Exchange yesterday was reasonably active,*with f-/ , business well spread. Prices Were erratic. * . The new local price for butter is said by one side to- be bdow the guaranteed price for export, and by the other to be above it. Both sides are agreed that the Government should fix the local as well as the export price.

•Vl^L SIDNEY WOOL SALES ■ FULL LATE RATES MAINTAINED ‘ KEEN COMPETITION SYDNEY, October 1. At -‘the wool sales, the closing auctions far the week saw keen competitioo from Yorkshire and the Continent ij£g m arket continued firm at full late rates." Greasy merino made to 21jd. A total at 12.101 bales were offered, and 10,088 pre sold at auction. A further 2251 «re: Sold privately. GOOD DEMAND IN LONDON SEPTEMBER SERIES CROSSBREDS STRONGER AT CLOSE The September series of London wool sales, which closed last week, ’ were more successful than was generally - -expected in New Zealand. Throughout there was an excellent demand for almost all types, and the clearance of New Zealand wools was exceptionally good. Not a great deal of super greasy wool, especially in the 'finer grades, "was offered either on behalf of Dominion vendors or others, Shut there was a good selection of / greasy crossbreds, which throughout "■•Atte series, were particularly strong. ' The Home trade was the main buy- ’ fcg factor, but there was free competition from the Continent, and also .from America. Continental countries bought rather -more freely than for sojne time, and America was in the market earlier than usual because of the shortage of raw wool there following the droughts of the last two years. . 'The succ sc of tHfe sales is an encouraging indication of prospects for the New Zealand wool selling season. 11l spite of the thoroughly disturbed European situation, and the uncertainty of Japan as an influence on the ) market, wool was freely bought at J rising prices. Europe apparently anust ' have wool, and if the currency agree- ■ meat works as it is hoped It will work. Continental demand should increase. A further encouraging possibility for - for New Zeeland wool growers is that ' at the local sales, added Japanese competition-will probably maintain the New Zealand price at levels at least equal to those in London, and very probably-better. Approximately 45,000 bales of New Zealand wool were sold in London during the series. Compared with July dosing rates, the market was on a par for merinos a penny higher for fine halfbreds (56/58). |d higher for halfbred (50/56). a penny higher for fine crossbred (46/48). and a oenny higher for low crossbred (40/44). Quotations for New Zealand wools at the opening and closing of the series compared as follows: Opening. Closing. d. d.. d. d.

LOCAL BUTTER PRICES OPINIONS OF FACTORIES DIVIDED GOVERNMENT CONTROL ADVOCATED A sharp division of opinion between dairy factories exists over the reduced prices for butter for local consumption which came into force yesterday. Prices at the factory door are now Is Id for standard brands, and Is Did for .second grade and grocers’ own wrappers. Retail prices are Is 2d and Is IJd. It is said on the one hand that the local price is below the guaranteed price, and that the producer must therefore be called on to bear the loss of the difference, and on the other that the price is above the guaranteed price, because costs to f.o.b. are higher than costs into grocers’ stores. Disappointment has been expressed by both sides that the Government has not fixed the local price as well as the export price, because whatever is done, the producer is the vitally interested party. The reduction was first made by the Central Dairy Company, which was followed immediately by the other companies.. The Tai Tapu Company has sent the following telegram to the Minister for Marketing, the Hon. Walter Nash: — “The Central : Dairy Company have reduced the, price of butter on -the local market to Is o}d. With the Government guaranteed price at 12 9-16 d for finest, f.0.b., it is impossible to pat and sell butter locally at 12£ d without serious loss to Canterbury dairy farmers. Will the Government gazette a minimum price at the factory door in order to protect returns to suppliers?” Mr G. H. Christie, secretary of the Tai Tapu company, said' yesterday that as the reduction was against the policy of his company; it had objected to the suggestion that'local prices be reduced, but had had to fall into line. The price was not economic. The reduction had been made as a result of among the factories, and would mean that the producer, would have to pay. The factories had to protect their local trade, but at 12Jd, with the guaranteed price at 12 9-16 d, it was impossible to’sell at a profit. Mr S. J. . Smith, secretary and general manager of/the Central. Dairy Company, sald'that the factories were disappointed that the Government had not taken steps, to regulate the price locally as well as for shipment His company would-be happy to join in any scheme proposed by the Government for the protection of the local market, but in the meantime it had to protect its local trade. ’ Certain factories had been giving ■secret commissions to' increase their local trade, and those factories which exported the greater proportion of their output had to take steps to protect their local business.

The price, Mr Smith said, gave a better return tham the guaranteed price, because the costs between the factory and the ship which were incurred in exporting were higher than those between the factory and the grocer’s “store. The guaranteed price was 12.56 d per lb, and the local price 12.50 d, a reduction,-of .06d, but this difference 'was easily made up in the lower costs of local selling. There was little difference between the costs of factories in the one centre, but obviously the company with the largest local sales Would be able to show lower local delivery, costs a pound. His factory could show a, margin of profit on the present local prices, which were likely to remain unchanged until the Government brought: local prices into some standard conformity with the export price. EXCHANGE MARKETS QUIET ... . ' < GOLD AT £7/0/3 (BamSß OFFICIAL WIRELESS.) RUGBY. September 30. A quiet condition prevails in the foreign exchange markets. The latest rates of sterling are:—On New York 4.96, Brussels 29.335, Amsterdam 9.05, Geneva 21.555, and Berlin 12.70. ■ British Government stocks have improved. War Loan, 34 per cent., is quoted at £lO7 Is 3d., About 408 bars of gold, of an approximate value of £ 1,150,000, were disposed of to-day at £7 0s 2d a fine ounce. . : MINING NEW RIVER, DREDGING CO. The New River Company’s dredge has been closed this week to permit of adjustments I ing made, and there will be i-o wash-up this week. Dredging will recommence on Friday (today). LAWSON'S PLAT RETURN The. secretary reports that the washup for the two weeks ended September 30Hyas 520z lldwt of retorted gold. marketing of dairy ..._ produce (press association telegram.) : : WELLINGTON, October 1. ’ Amendments to the Dairy Produce Coagulations. 1933. «» tsined in to-night’s Gazette, mese SSSe ' for . machinery amendments E, old regulations to bring jJham into with recent legislation. They dfeal principally with the manufacturing side and the packing of produce for marketing.

AUSTRALIAN PRODUCE r'; I prices .Ic mT v SYDNEY. October 1. country sidings, is quoted 4*,. equal to about 4s B|d ex Sydney. £ :■ £l2 s<s Pnb* a^d Pollard—£6 10s. Mg 6 * —Tasmanian £lO 10s.. others brown, £lB. y' I £RI€E OF SILVER fed| LONDON, September 30. quoted at lSid a fine dunce «bot and forward. WppV’ YORK CALL MONEY ' ’ |bESE| 'NEW YORK, September 30. 3» uochanged at 1 per

RESERVE BANK FIGURES WEEKLY STATEMENT '.ASSETS AND LIABILITIES (PBESS ASSOCIATION TELEGHAit,) WELLINGTON, October 1. A Gazette issued to-night contains the following statement of the assets and liabilities of the Reserve Bankof New Zealand as at the close of business on September 28:— LIABILITIES £ s, d. (1) General reserve Fund .. 1,500,000 0 0 (2) Bank notes .. 11,174,757 10 0 (3) Demand liabilities—(a) State .... 3,898,062 19 11 (b) Banks .. 6,873,521 0 7 (c) Other » • 241,634 16 10 (4) Time deposits .. i (5) Liabilities in currencies other than New Zealand curfGpcy ■ ~ (6) Other liabilities , 105,489 7 8 Total- .. 23,793,465 15 0 j ASSETS | (7) Reserve— >. I (a) Gold .. 2,801,733 0 0 (b) Sterling exchange .. 16,835,564 5 7 (c> Gold exchange (8) Subsidiary coin .. 170,524 1 3 (9) Discounts—(a) Commercial and agricultural bills • (b) Treasury and local body bills (10) Advances—(a) To State or State undertakings— (l) Dairy industry account .. 1,095,350 2 3 _ (2) For other purposes •. 700,000 0 0 (b) other public authorities .. (c) Other .. (11) Investments .. 2,123,576 12 11 (12) Bank buildings (13) Other assets .. 66,717 13 0 Total .. 23,793,465 15 0 Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, 88.504 per cent. SHEEPSKIN SALE PRICES FIRMER The Christchurch Woolbrokers’ Association reports having held its weekly skin sale yesterday, when bidding wßs keen, and prices up on last week, id to id per lb on dry skins, and 3d to wd on green skins. The following is the range of prices:— Sound. Faulty. Halfbred— d. d. d. d. Three-quarter to full woolled 12 to 13i 10 to Hi Half woolled to 9i 8 Short .. 7 6 Three-quarterbred— Threequarter to full woolled 9} to Hi Half woolled 83 Crossbred— * Three-quarter to, full woolled 9i to 10 8 Half woolled 63 - Short 5 Merino-Three-quarter to full woolled Hi 9i Hoggets-*-Halfbred Hi 93 Three-quartebred and xbd. 93 8» Pelts 4i i 3 Green Skins Halfbred .. 6/9 to 15/8 Three-quarterbred ~ 5/1 to 13/5 . Crossbred V- 6/7 to 10/9 Hoggets .. 5/6 to 7/6 OFFICIAL REPORTS

Hobart. N.W.. light, over- - cast • - 2947 RABBITSKIN SALE PRICES ERRATIC (PRESS ASSOCIATION TELEGRAM.) DUNEDIN. October 1. With the rabbitskin season practically over, the quantities offered at today’s sale were small, and the quality generally was inferior. There were a Few small orders in the market, but the somewhat erratic nature of the sale was due to the fact that most of the buying was purely speculative. Following is the range of prices:— Summer broken 24d to 26d per lb. second winter broken 32d to 34d, first winter broken 45d to 45Jd, runners 23d to 25d, summer bucks 26d to 28d, does 23d to 252 d. small 16d to 20d, light racks 24d to 36d. first winter bucks spotted 103 d to 1124 d, first winter does spotted 64d to 68d, second winter bucks 116 d to 126 d, second winter does 75d to 79d. first winter bucks 130 d to 138 d. first winter does 85d to 88d, prime winter bucks 137 d to 139 d. prime winter does 88d to 90d, 'outgoing bucks 83d to 894 d. outgoing, does 56d to 62id, spring bucks 52d to 58d, spring does, 35d to 39d. milky 30d to 48d. fawns 28d to 36d. winter fawns 70d to 76d, first winter blacks 74d to 76d. second winter black 58d to 60d. hareskin 20d to 36d, horsehair 18d. _ MANAWATU JERSEY SALE PALMERSTON NORTH, October 1. At the fourteenth annual Manawatu Jersey bull and- heifer sale, the top price was secured by P. A. Anderson (Levin) for a yearling bull, at 48gns. There was a representative attendance of buyers and a very good resulted.

'Good to super 14 to 17 14 to 17 Lqw to medium 12* to 134 124 to 134 Roe halfbred, 58-58’s — • Good to super 14J to 16 144 to 16 Low to medium 124 to 14 124 to 14 Halfbred. 50-56’s— Good to . super 13 to 15 13 to 15 Low to medium 11 to 124 11 to 124 i 5hree-ouarterbred. 48-50’s— i. "> Good to > super 104 to 12 104 to 12 Low to i medium 9 to 10 9 to 10 ! < ®ne crossbred, 46-48’s — ? Good to V , super 10 to 11 10| to Ilf 5 Low to : fmedium 9 to 91*. 94 to 104 i Kedhiro crossbred. 44-^46*8 — X Good to super 10 to 11 104 to 114 .Lowfo , medium 83 to 94 9 to 10 ■ • Low crossbred. 40-44’s^— Good to super 94 to 104 10 to 11 Low to ’ medium 84 to 94 83 to 91 ®*Swed merinos— Good to _ super 23 to 28 244 to 28 v. Low to 1 * medium 194 to 224 20 to 24 halfbred, 50-58’s— ", Good to , : ■ super 21 to 244 - -i Low tp 22 to 24f d »r medium 174 to 20 18 to 21 ■ "'Z'W length lamb slices— . 1 50-58*8* •'?f -Low to 1 inti B00d 14 to 15 14 to 164 ‘ Ijow to ■£. > good 12 to 14 12 to 14

Station. Wind. Weather. Bar. Ther. Norfolk Inland, E., light, 30.19 67 clear Cape Meria v=>n Diemen, ’ W., light, clear, smooth 53 sea .. 30.24 Auckland, S.W., light. 30.11 62 fairly clear . .. East Cape, S., mod.. 29.97 60 cloudy, mod. swell .. Gisborne, S.S;E., mod., 29.99 62 cleat .. Chateau Tongariro, W., 49 light’ clear .. Cape Egmont, W., mod.. 30.07 60 fairly clear, rough sea Napier. S.W., light, fairly 29.98 68 clear, smooth sea Wanganui, ! W., fresh, 30.06 61 fairly clear, rough sea Farewell Spit. W., mod., 29^8 59 hazy, mod. swell Stephen Island. W., light. fairly clear, slight 30.00 57 swell . . • • 1 Wellington/ S.S.E.. light, 29.99 55 clear slight swell Cape Campbell. S.E., light, 30.00 52 cloudy, smooth sea .. Westport, S.W., mod., 30.02 55 clear, mod. sea Greymouth, S.W.. mod.. 3Q.15 57 fairly clear, cons, swell Akaroa Lighthouse, S., light, fairly clear, 30.00 54 rough swell Bluff, W.N.W., fnod., clear, 29.92 48 mod. swell .. ■ • Puvseaur Point, N.W., fresh, overcast, mod. 29.97 47 swell ■ • • • Chatham' Islands, S.W., high wind, overcast, 29.68 51 rough sea Sydney, N.W., mod., over- , cast . .. 29.83 87