FINANCE AND COMMERCE

Press, Volume LXXII, Issue 21906, 6 October 1936, Page 11

FINANCE AND COMMERCE

W-..

dairy board report 9

RETAIL PRICES RISING

8 W $2 Exports of butter and cheese from New Zealand in the year .5, .fra/iifig on March 31 were greater In value than in any year '■* , 55e1830, and have been &tc ceded only four times, aecerdthe annual report of the New Zealand £)airy Board. The j&drt records that the weather during the production season extremely varied, but that Sustained delivery late in the jSjsn-was remarkable. ;■ J • .S?; Retail prices are now rising, according to shopkeepers, and ■* # wv Itoes of local manufacture have been affected. Some imSited goods are also dearer because the demand for materials jpj* armaments has created shortages for other purposes. ■J' the Christchurch Stock Exchange yesterday was reason- ■■ ahiy busy, with prices well maintained.C iy.Z. DAIRY

EXPORTS

..I t ' , Higher Value Since

1930

rOTAL QUANTITY LOWER

’ 'exports of butter apd cheese from . in the year ended March • S] ' 1935,' Were valued at £18,048*831, ; t i,in4 £13.374,216 in the previous j&i, although adverse weather fctttifi&t production down from 4ms4Bcwt to 4,302,519cwt, states the gsiiual report of the New Zealand •;/ Board* The report records in • the new legislation which has token Odt Of its hands much of its Tflffk. The number of cows milked 'ja the 1935-86 season is estimated at a record. •It ii many years since the Dominloh has experienced a production sea* , sol aerial which the weather has been •s® varied, A severe winter was folktfedtoa dry, early spring, with lack , d great feed in many districts, In 1 the later spring and early summer - there was plenty of rain; but cold father militated against production .■= "-increasing as it might have done. v Storms arid floods were experienced in gerefil daily districts, but in Otago ; ’aftd Southland there was lack of rain fee alffioSt the whole Of the season. ffl» autumn, however, was phenomenal by reason of maintained pro- ‘ ductiob. Although cold spells were ' experienced early, the abundance of ' feed kept the production at a high • level and the sustained delivery Of i Hafry produce to northern grading stores Was most remarkable. . % has been difficult to understand the trend of cheese prices ift recent yens. The total importations Of but* ter into the United Kingdom over the 1. lad IS years have ; almost doubled, m whereas with cheese the total Quantity |i Sinborted the same teV romm practically stationary. ■; In spite oLtSis,' cheese prices have ffil|dn just '• as'much, and as frequently, as the ' prices of butter. There is a growing hwef that the food habits of the people of Great Britain are gradually changing, and that the tendency is ■ along the line of a reduction in what may be galled the heavier foodstuffs.which- include cheese. Whether this 1 ■ »so Of hot, the fact remains that the ?, Increase per capita consumption which I -b to noticeable in butter is entirely fcpjf With cheese. Trend of Production * fffig trend of production is now td.wirds aft increase in the output el -. butter, and for two years in succession ; been a substantial decline in ;> cbees manufacture. What the effect r ri%ueranteed prices will'be upon this > bad iUll remains to be seen. Unless there is a substantial premium on the jayflte&t for butter-fat supplied to a . djee* factory, as compared with that • supplied to a butter factory, ft is cer* • ton that the production of cheese will .teas to decrease - further. The ■toe lost by the farmer or his am* phm in delivery of milk to the . factory, the wear and tear and -c tet « running and maintaining the Ptovsttflh as lorries, horse and spring , «tosj aak cans, etc., and the loss ol loir feeding calves and Hfs> has to be taken into consideration wnea the dairy farmer faces the prob«cheese versus butter, ,/ =• Butter prices There has been a distinct improve* toent la the prices realised for but* -to, as compared with the previous „ the 193445 season we i ® Pear's report the esti* & average price realised, for but* . I®. the united Kingdom, as 80s !■' the 1985*36 season the a average price is 955. equal ■; currency to 108s id advanced steadily from ■ * to October 19, when the re* SffiSr frlee was 122s to 128s for ■ ?* Compared With 64s to 70S at Sf. rate in the 1934-85 season. Prom .S*Prices gradually receded up 1936, When the lowest season was reached, via., 8I& w h en began to J£M ®f if one. During duly the .SfL% 10 . 98 * hut at July 31 ilte. Por the previous season : 2»®V?fc fet March 21 was ns to m Wat 90s, rising to coi^l s on Danish butter afc tvith that sent from Hew Australia is most marked, SffS*S/ hßn this end seems aim* . -*en .itoUfy. During the 1934*35 sea- ’ m® 6 Pfemium for Danish at the ; . Point Was 565, and the lowest ■w, whereas for the 1935-38 season , '«wJS ß^ l JS r ® aii ton was 46s and the he price of Danish does t0 be subject to the same 3s the Colonial, arid the Prints 1 highest and lowest to|al importations of butler the United Kingdom since 1916 nSS. ®9re than doubled, the figure from 100,380 tofts, to Por 1981. Hew Zealand Jr 7 ’® per cent of the total im* Denmark, 25.8 per cent.; Aus£s^?’ -DI per cent.; and for 1935, New 27.5 per cent.; Denmark, 23 and Australia, 22 per cent 1’ ' ®»lry Besearch aKjjS®'’.dairy industry, through the been contributing at the per annum to the work; Research Institute, MasPalmerston North. It is L'ntoda are available, that a contribution will be In. February of this kmSi'jmsWwag Hlddet proceeded on a dairying conditions with dairy rein North America, Bn-

FOREIGN EXCHANGES

tain arid Europe. The tour was made possible in the first place by a grant of 2000. dollars offered by the Trustees Cal ? egie GOrporatiCm; this W«s supplemented by grants from the Baity Board afid the Oovernment. The award of the granx oy the Carnegie Corpcrat*on ¥ 211 honour both to Professor Niddet and to the Massey AgrieilltUral college and Dairy R-scarCh institute* It ift an indication that Profeisbr Rid" det § Work in the field Of dairying has an international standing. Such grants are made available for the pUrpromoting international under" *md goodwill, and no detailed conditions are laid down as to how they are to be spent.

The Ottawa Treaty “The treaty completed at Ottawa in August, 1932, will terminate next year. .By its terms there might have been imposed, during the two anal years of this, agremeent either a tariff or a quota, or both. T he British Government has, however, acted generously market has been available for all New Zealand produce. It Is anticipated that the New Zealand Government will be represented in Londpn by the Prime Minister, the Right Non. M. J. Savage, and the Hon. w. I Nash when the negotiations for a new treaty take place next year, ‘Tne arrangements just completed the British Government and the Governments of Australia and New Zeal&ha iii colitisjddii with meat promise well lor.the dairy produce nego* tiations, as the meat from, the two Dominions eH{e fg the British market free of tariff, and in- such quantities as will nhow Jor the shipment of all meat available. A tariff has been imposed ngainst meat from foreign countries. The shipping of another season’s dairy produce is almost completed and brings to a. close the board’s responsibility In this connexion. In no exporting dairy country in the world has the shipping work been so efficiently organised and carried out. The dairy companies, simply sent their produce forward for grading, and all the multitudinous arrangements necessary to have it delivered overseas have been carried out by the board. "As mentioned previously, climatic Conditions have been most erratic and Varied, making it difficult indeed to forecast with any degree of accuracy thj total tonnage of butter and cheese available 'for the season to supply continuously our United Kingdom market, in accordance with the monthly requirements suggested ty Ouf London Office in conjunction With the London importers. , Australian Agreement : ‘‘Furthermore, an agreement was entered intOToy the first time with the pusteaitem Dairy Board to co-operate bn a shipping policy whereby the two countries would i regulate their arrivals in the United Kingdom .in such a manner that the market would be judiciously supplied from month to month as far as it was possible to do so by controlling shipments from this end. Botn countries have adhered to this agreement With, W6 feel, certain benehcial results to both.. Australia has experienced a very dry season, and her exports to the United Kingdom will probably be at least 20,060 tons Of butter less than lor the preceding season, whereas New Zealand exports of butter will show an increase of approximately 16,000 tons. These variations make close co-operation between the two countries essential. The need for a policy of regulatibn cl arrivals from this Dominion and Australia becomes more apparent when we remember that there is a tendency for all dairysupplying countries to increase the quantities sent to the united Kingdom, “Experience gained over past years indicates tha ; it l necessary to delay the shipment of a considerable percentage of the peak months’ production until the late autumn and winter months so that the produce arrives in the United Kingdom when Northern Hemisphere supplies are declining. Dairy companies know only too well the advantages secured during the last few months because of the board’s policy of limitation of shipments. “Late spring and autumn production was exception?* and storage, accommodation was severely taxed throughout the Dominion, but the carrying forward of a large portion of this almost abnormal production to the offmonths has been well worth while, and both butter ana cheese factories nave received greatly improved prices. Whatever the future may hold for the Industry under State control of marketing, it la hoped that the shipping policy which has been inaugurated by the board after years of experience and study will be continued, The report includes an exhaustive survey of the publicity undertaken to advertise Hew Zealand dairy produce in Great Britain, and embodies a long series of tables and graphs showing supplies to and prices on the British markets.

Continued Trade

Recovery

WOOL

(mfiMSD ttßKss AsaociATtow—copraTGirt.)

LONDON, October 4,

WHEAT CONTROL CRITICISED

AUCKLAND MILLKRS*

COMPLAINTS

(PSESS ASSOCIATION TELE GUAM.)

BIG INCREASE IN TONNAGE-

OTlfcA TUNNEL TRAFFIC

FLOUR PRICE INCREASED

(PEESS ASSOCIATION TELEGBAM.)

PRICE OF GOLD

(BBITISB orncui. WiaSLESS.)

RUGBY, October 3. Gold is quoted at £7 Is an Ounce.

DOLLAR MARKET RATES

MARKETS STRONG IN BRITAIN

BUYERS’ CONFIDENCE IN

The stock markets account ended cheerfully after what might have been a disturbed week following the revaluation of the franc. The success of Friday’s working of the international monetary arrangement, assisted by the absence of repercussions in Paris, where the Bourse is reopening after a week Stimulated London security markets. Gilt edged stocks, Which Were affected by an undue bearishness earlier in the week completely recovered. Dominion stocks were firm. Industrial Progress iron and steel appreciated on Sir SfimUel Hoare's hint of an acceleration of rearmament, and industrials reflected the market's view that devaluation did not threaten British industry. • The continuance Of British trade recovery is instanced by the fact that more than £1,000,000,000 .more is Circulating now in trade and industry than at the corresponding time last year. According to the bankers clearing house, cheques and bills dealt with last week were £ 162,291,000, making a total increase in the first three quarters of the year approximately £1,130,000,000. Wool and Dairy Produce Emphasising the strength of the wool market as evidenced at the Australian sales, experts point out that Yorkshire thereby Is showing buyers’ confidence in present values and topmakers feel that the Japanese can-' not remain aloof much longer. Butter has been fairly active this week, Australian and New Zealand recovering to 105s. Subsequently they declined to 104s, partly as a result Of a denial of a report that America intended to impose a dumping duty against Continentals and also to the fact that buyers acquired a fortnight’s stocks. Cheese recovered In sympathy With butter.

AUCKLAND, October 5. Severe criticism of the Government’s scheme of control in the wheat industry, which came into operation earlier this year, is made in a circular issued by the directors of the Northern Roller Milling Company, Ltd, The circular was issued with dividend warrants for the interim dividend at the unchanged rate of 4 per cent, per annum for the half-year ended August 31.

“Your directors regret to inform you that owing to the regulations introduced by the Government, namely, reduction of output, fixation of price, and increase in income tax and graduated land tax, the company has not earned sufficient to pay this dividend and have had to use some of the undivided profits,” states the circular. “Another factor has been the poor quality of wheat, which means the extraction of less flour and more offal. Strong representations- as to the injustice of the conditions imposed on the company’s business have been made to the Minister for Industries arid Commerce, also to the Minister for Finance, but so far without result. As the Government claim to be builders, not wreckers, your board feels that this company, after a successful life of 30 years, has a right to he allowed to carry on its business with a reasonable margin of profit. The board will continue to press upon the Government the necessity of doing justice to our old-estab-lished industry.” Dividend on ordinary shares last year was reduced from 7 per cent, to U per cent., while 418731 was added to undivided profits, making a total of jj dh tjDrt The chairman of directors. Mr John Hellaby, pointed out at the annual meeting in April that through the Government's legislation shareholders had had their savings or investment reduced by £125,600, -that being the difference between the value of their Shares then and in April, 1938.

The growth of trade between the West Coast and Canterbury is reflected in the tonnage statistics for the Otira tunnel. For the first six months of the present financial year, 340,102 tons of goods were transported through the tunnel from the West Coast, as compared with 318,148 tons for the corresponding Period of last year, an .increase of 21,084 tons. Coal and timber were the principal lines handled. . Last week gtiods carried amounted to 12,804 tons, against 10,841 handled during the corresponding week of last year, an increase of 1663 tons. The two peak days were Wednesday and Thursday, the tonnages being 2475 and 2464 respectively.

AUCKLAND, October 5. The price of sack flour has been raised by 3s 6d a ton as from to-day, making the new value £l3 15s 6d a ton, according to an announcement made by the Flour Section of the Wheat Committee. The increase is being mado on 2001b sacks. There will be ho increase in the price to the public either for floUr or bread, as the. agreement is purely between the Wheat Committee and the bakers.

The Associated Banks (other than the Bank of NeW South Wales) quoted the following dollar rates yest*>rdayori a New Zealfthd cilfrfcnCv bisiS. They hre subject to alteration Without notice r U.S.A. Canada. . (per £1 (per £1 N,Z.) N.Z.) Dol. Dol. Selling— « • r .. • T.f. .. .. 3.65.1 3.95 O.&. .. 3.951 S.SBj Buying— T.T. .. ■ ... 3.982 3.982 OJO. .. „ 4.00 i 3.99S

omcuL wiasti«»«.» RUdSY. October 3. Bar. Oct, 2. Oct. 3. Paris.fr, to £1 124.01 105 23*32 105 21-32 New York. dol. to £1 4.868 4.93 j 4.93 3-16 Montreal, dol. to £l 4.868 4.92| 4.92? Brussels, belgas to £1 35 29.51 29.32 Geneva, fr. to £1 25 £215 21.44 21.445 Amsterdam, fl. to £1 12.10? 9.20 9.32 Milan, , 92.46 lire to £1 ' — * Berlin, reichrnarken to £1 29.43 12.245 , 12.26 Oslo. kr. to: £1 Stockholm, kr. to £1 18.150 18.159 19.90 19.395 10,90 19.395 ■Vienna, schgs. to £1 34.585 265 , 165 Ke nv. to £i 164.25 1101 122 Nelangfors, marks to £l 193.23 223 223 Madrid, pese25.2215 .. tas to £1 —. , Lisbon, escudos. to £1. 110 1105*16 110 3*16 AthfenSi. drach to £1 375 &50 550 Bucharest, lei to £1 843.0 665 075, Belgrade, • dinara SSSj&lS — ' Bio de Janeiro, pence to ... milreis • * 4.899 41 41 Buenos Air% 5l pence td dol. Montevideo., ■ pence to dol* Bombay, pehCb to JUpde 51 19 385 165 385 184 • Shanghai, pence to dol. * 14| Hong Kong, pence to yen. „ '• 1427-32 14J Yokohama. pence to yen . e 12.10? 14 1-64 14 1*64 =“ v “-