FINANCE AND COMMERCE

Press, Volume LXXII, Issue 21938, 12 November 1936, Page 21

FINANCE AND COMMERCE

SYDNEY WOOL SALES

♦ : STOCK EXCHANGE ACTIVE ; AMERICAN COMPANY DIVIDENDS The Christchurch Stock Exchange was busy again yesterday, with dealings over a fair spread of stocks. Industrials were the mainstay of the market, but prices were erratic. ' There was a pronounced demand for chain stores, and Woolworths issues improved. A' good measure of the return of prosperity to the Ameri--11 can automobile and other industries is afforded in the announcemen! yesterday morning of a record dividend, a bonus, and an increase in wages by General Motors Corporation. This morning a cablegram records that the Chrysler Corporation has announced a record dividend, and the Gulf Oil Corporation a distribution which is said to be a record.

PRICES AGAIN FIRMER jBBN UNITED STATES BUYING (CflTtß »CSS ASSOC I ATI OK—COPYRIGHT.) SYDNEY, November 11. At the wool sales, 12,606 bales were dfered, 11,767 were sold at auction and jg privately, jjjg prices were at the beat point 4 the week, with particularly keen ampetition from Yorkshire, the Conjjaant, and the United States. Greasy merino fleece sold to 31id, instituting a fresh record for the seam toe Sydney. JiONDON SERIES OPENS TODAY FNIAL SALES FOR YEAR LONDON. November 10. The sixth and final series of the London wool sales for 1930 will open os November 12 and conclude on December 2. The catalogue totals M 0,500 sales, including 52,350 Australian and 41,150 New Zealand. ANTWERP FUTURES LONDON, November 10. Antwerp wool futures are quoted:— December Slid, March Slid, May 31|d per lb. CONTINENTAL WOOL BUYING RECENT INCREASED ACTIVITY FIRMING OF CERTAIN TYPES The Continent has this season to a Urge extent regained its influence in Australia as a wool purchaser, says the latest report of Winchcombe. Carson, Ltd. In 1932-33. 45 per cent, of the quantity sold in the Commonwealth was bought by Continental operators. Last season the figure was 31 per cent. During the last few weeks France partieularly has operated with marked vigour. Her purchases have embraced types ranging from good class fleece wools to skirtings. The latter have benefited to a marked degree from increased European orders. Faulty pieces offer an example of the benefits which have resulted from that development. Very burry inferior greasy pieces at this time last year were 5d to 61 d per lb in Sydney. They have recentlv realised 7d to Bd. Inferior bellies selling at 5d to 5Jd 12 months ago are making 8d to 6id. The recent devaluation of the franc with the consequent prospects it supplies of increased interchange of trade is the chief cause of that improvement. Competition Lacking With the expansion in Japanese wool purchasing which occurred in recent years in Australia, the ill-effects of decreased Continental buying were not ilrangly apparent; but competition lacked healthy distribution owing to the want of good European business. The market was too dependent oh Yofkihlre and Japanese orders. Slackening in purchasing on the part of either of those sections would have produced a sharp decline in values. That was apparent in June, when wan withdrew from buying. The market now looks sound, but if sapan were operating we would be experiencing the healthiest market ae» for many years, and when we Me the term healthy we do so to imnlv ■tfety as well as satisfactory prices. Istcessive values are not healthy. Thev are usually the forerunners of low figures. Booms burst. On the existing range last season, however, good remilts were available for growers, trade Proceeded in good volume in England. Japan, the United States, and in a few VTOtinental centres, and manufacturearned gratifying profits on their turnover. No Shortage Some nersons apoear to be of the •Pinion that an acute shortage in wool ■applies exists. Such is not the case. The quantity available is about the mane as a year ago. A boom in prices, therefore, should not develop. We Would be particularly disturbed if it •fld arise, because we are confident it Wild not last. in the years ahead. Australian pro* *i r 'fion of wool is certain to expand. imnrovement ’« increasing in districts climatlcallv suitable and with s *O-* the day will come when •vjw Commonwealth will grow 3.500 000 Dales of wool in a year, and nossibly a m<we distent time 4.000 0Of) bales. *o get buyers for that oroduction. rea•onable nnces are necessary to ensure t?CßsnmDtion by developing the woolWearmg btbit ye a r in. vear out. ApPjjrel for the world’s millions at prices within specified limits is essential for umt exnansion. Provided prices do not rise unduly, the outlook f cr the sale of the current CU P is promising. CHRYSLER DIVIDEND

if (suited tress association —coi'yeigut.) I

| NEW YORK. November 10. r The Chrysler Corporation, apparv surprising Wall Street after the ilgF* 1 * the market, declared a diviNHpd of five and a half dollars a share Hl.common stock, the largest in its liptory, bringing the total this year to dollars, compared with two dollars IBP Tear. iPMtr Walter Chrysler said the net ■pSt for the first nine months of the ■p vm wn&sm dollars.

RUBBER PRICES RISE EFFECT OF INCREASED QUOTA I THE PRESS Special Service.] DUNEDIN, November 11. Advice has been received by the secretary of the Dominion Rubber Company that at a meeting of the International Rubber Restriction Committee on October 27, it was decided that there would be no Increase in the export quota for the current quarter, which is 65 per cent, of standard production, but that the export quota fcr the first quarter of 1937 ghould be increased to 70 per cent. The rubber market, which had been “marking time” pending the announcement by the committee, responded sharply, and sales were made towards the end of October at approximately 8d per lb, this being the highest price reached since 1930 THE METALS MARKET

PRICE OF GOLD LONDON, November 10. Gold is quoted at £7 2s 7d a fine ounce. STOCK SALES STORTFOBD LODGE (FBKSS iSSOCIATIO* rCLEGKAU.I HASTINGS. November 11. Last week’s advanced rates for both fat cattle and sheep were maintained ai Stortford Lodge to-day. Prime mediumweight ox beef was sought alter, but second quality lines met a quieter sale. Outstanding in the female section was the Haupiri draft of prime heifers and cows, which made to £lO 17s 6d, averaging well over £9. Inferior cows sold surprisingly well. An exceptionally short yarding of store cattle contained very few station-bred lines, the best being forward Aberdeen Angus yearlings which made £7 Is. Good two-year-old steers realised £8 ss. Shorn two-tooth wethers predominated, in the store sheep section, the best lines making 235. Aged woolly ewes, with lambs, made to l£s 4d. all counted. Both prime ewes and wethers maintained last week’s rates, but spring lambs were in over-supply and hard to quit. Best sorts made 265. buyers showing no Inclination to exceed the freezing schedule. BURNSIDE

(PRESS ASSOCIATION TELEGRAM.) DUNEDIN, November 11. The market for fat cattle at Burnside stock sale to-day was about on a par with last week, until towards the end, when prices, especially for better quality sorts, improved. Prime heavy ox brought to £l7 7a fid. prime £l2 17s 6d to £l3 Ls 6d medium £lO 12s 6d to £l2 7s Od. and light down to £9 17s 6d. Prime heavy cows and heifers to £lO 12s 6d. prune £7 7s fid to £9 7s 6d, medium £6 -s M to £7 2s 6d, and light down to £o 12s bd. ■ There were 105 store cattle yarded, and pens of well bred four-year steers realised £8 Is under keen competition. The entry of dairy cows numbered 31. and a Jtew good young cows forward met with good enquiry. , „ Outside competition kept the market tor fat sheep firm until the final races, when there was a noticeable easing. Pinnc heavy Wethers, in the wool, brought to £2, shorn to £1 10s, prime (in wool) £1 15s 6d to £1 17s 9d, shorn £1 Tis Cd to £1 7s 6d, medium (in wool) £1 Us to £1 Xss 3d, shorn £1 2s 9d to £1 ss. light and unfinished (in wool) down to £1 7s 3d, and shorn down to 19s. Prime heavy ewes (In wool) realised to and shorn to £1 7s, prime (m wool) £1 Us 9d to £1 14s; shorn £1 3s 6d to £1 5s 9d. medium (in wool) £1 5s 9d 3d. shorn £1 2s to £1 3s 3d. light (in wool) £1 to £1 3s 9d. and shorn 17s 9d to The fat lambs forward met with a firm market until the latter stages, ' “’hen there was an easing of up to 2s a head. Prim® heavy lambs made to £1 Us 6d, prime £1 3s fid to £1 Bs. and light down to £1 Pat pigs numbered 160. Baconers brought from £3 8s to £4 4s, and porkers from £2 8s to £3 ss. _ , Stores, of which there were 240 offered, realised from £1 Is to £2, according to size and quality. LONDON PRODUCE MARKETS HIGH COMMISSIONER’S REPORT The Department of Agriculture has received the following cablegram, dated November 7, from the High Commissioner for New Zealand. London. Tallow— Market quiet; prices slightly easier owing to limited supplies. Hemp—Manila; Market firm; shippers' prices out of range. NovemberJanuary shipments, £27 17s fid to £2B. Sisal: Market firm; easier at the close. Sellers' quote for November-January shipments £26 10s; March-May shipments sold at £26 15s. New Zealand: Nothing to report; low grades offered at prices above buyers’ ideas. Eggs—Market steady: liberal supplies stop high prices. English consumption advances: Prices lower. English. national pack. 18s fid to 22s fid. English, ordinary pack. Msjo 21s: Danish 141 b per long hundred, 12s 9d to I7s; Australian, 13s to 15s.

ARTIFICIAL FIBRES IN INDUSTRY LARGE INTERNATIONAL TRADE ECONOMIC COMMITTEE’S REVIEW “Industrial Fibres,” a review just issued by the Imperial Economic Committee, records that most of the chief textile manufacturing countries of the world are conspicuously deficient in raw materials, and that only a comparatively small part of the production of natural fibres is utilised in the country of first production. Such fibres accordingly enter largely into the channels of international trade. The review summarises the figures of production, trade, and where possible, consumption of cotton, wool, silk, flax, hemp, jute, and rayon during the last eight years, and indicates the more significant changes. In recent years, financial and economic difficulties have somewhat impeded the normal distribution of natural fibres. Further, there has been a marked development of secondary industries in such countries as China, India, Australia, and Argentina, and a consequently reduced overseas market for the finished products of the older manufacturing countries. The industrial development of Japan has indeed constituted a factor of major Importance in the changing world textile situation. In the period reviewed, Japan has not only retained its place as the world's chief supplier of raw silk, but has also became a larger manufacturer of silk fabrics for export. At the same time, Japan has become the largest importer and the second largest consumer of raw Cotton, and in eight years has more than doubled Its consumption of wool. An outstanding development during the period under review has been the increased production rayon World production in 1928 Is estimated at 360 million lb. and in 1935 at nearly 950 milion lb. Rayon has definitely established itself as a textile fibre with marked characteristics and a widening sphere of utilisation, illustrated by the recent adaptation of staple fibre for use on cotton and worsted machinery. The United States is the largest producer of rayon. Japan, where the development of the industry has been Particularly marked, now takes second place. Italy produces nearly half the estimated production of staple fibre. In the absence of consumption statistics In the chief manufacturing countries. the extent to which rayon has been substituted for other textile fibres remains problematical. On the one hand the use of rayon in mixed goods has undoubtedly extended the range of textile products, and widened the scope of utilisation of cotton and wool. On the other hand, it has probably replaced natural fibres in certain branches of the hosiery industry, if not elsewhere. It is significant to note that three of the largest producers of rayon, Japan. Italy, and Germany. are countries which are particularly dependent on foreign source® of supply for their textile raw materials. ISSUE OF NEW STOCK AMERICAN COMPANY’S BIG DISTRIBUTION (f.VITF.D PRESS ASSOCIATION -COPYRIGHT.) PITTSBURGH, November 10. One of the largest stock distributions in the history of American industry has been declared by the Gulf Oil Corporation, which will issue 113,450.000 dollars worth of shares at par, doubling the company's capital. The value of the new stock at current market prices is approximately 500.000.000 .dollars. FOREIGN EXCHANGES (BRITISH OFFICIAL WIRELESS.) RUGBY, November 10. Par. Nov. 9. Nov. 10. Paris, fr. to £ 1 124.21 105 9-64 105 5-32

. 1 DOLLAK MARKET KATES The Associated Banks (other than Die j Bank of New South Wales) quoted the I following dollar rates yesterday, on a New Zealand currency basis. They are subject to alteration without notice:— U.S.A. Canada (Per £1 N.Z.) Dol. Dol. Selling— T.T .. . . 3.912 3.90 J O.D. .. .. 3.91 a 3.912 Buy me — I T.T. .. .. 3,95 3.941 j O.D. .. .. 3.901 3.951 i FRENCH AND AMERICAN EXCHANGE LONDON, November 10. United States and French exchange closed to-day at: Dollars 4.871, francs 1054 to £1 sterling. COLOMBO TEA AUCTION DUNEDIN, November 11. Mr L. M. Wright has received the following cabled report on the Colombo tea auction of November 10: “At yesterday’s sale of 2,000,0001 b, common grades remained steady. Medium and fine teas at the close of the auction were 4d lower, mainly owing to the inferior quality of the offerings. Next week’s sale catalogue is for 2,000,0001 b.” HENRY JONES CO-OP., LTD. Directors of Henry Jones Co-op., Ltd., will recommend to shareholders at the annual meeting on November 25 a final dividend of Is fid a share <74 per cent, per annum), making the total distribution for the year 2s a share (10 per cent, per annum). Last year a ’ dividend of Is fid a share (8f per cent.) was paid. Books close on November 10.

LONDON, November 10. Nov. 3. Nov. 10. CoDoer— a s. d £ s. d. Standard, spot 44 6 101 43 18 9 Forward 44 14 44 44 6 104 Electrolytic .. 49 10 0 48 15 0 to 50 0 0 49 10 0 Wire bars .. 50 0 0 49 10 0 Lead— Spot 21 8 9 21 2 6 Forward 21 8 9 21 2 6 Spelter— Spot 16 6 3 16 18 9 Forward 16 12 6 16 12 6 fin— Spot 240 7 6 244 12 6 Forward 238 2 6 241 12 6 Silver— Fine, per oz. 21Jd 22 15-16d Standard, per 02. 23Sd 24 Jd

r<etv i uiK, dol. to £1 4.866 4.87 9-16 4 .87 13-16 Montreal. dol. to £1 4.366 4.864 4,86s Brussms, belgas to £ 1 35 28.82 28.83) Geut % a fr. to £ 1 23,2215 21.21.1 21,213 Amsterdam. fi. to £1 12.107 9.08g 9.964 Milan lire to £1 92.46 92 21-32 92g Berlin reichmarken to £ 1 29.43 12. Hi 12.12 Oslo, Kr. to £1 13.159 19.90 19.00 Copenhagen. kr. to £ 1 18.159 22.40 22.40 Stockholm, kr. to £ 1 18.159 19.39i 19.394 Vienna’, schgs to £1 34.585 26) 264 Prague, kr. to £ 1 164.25 1373 1373 Helsingloi s. marks to £1 193.23 2263 2233 Maunu, pesetas to £ 1 25.2215 „ Lisbon, escudos to £ 1 110 110 3-16 no 3-16 Athens, draeh to £1 375 550 550 Bucharest, lei to £ 1 843.6 670 670 Belgrade, dinars 25.2215 214 214 Rio de Janeiro, pence to milrels 4.899 43 43 Buenos Aires, pence to dol. 51 Montevideo, pence to dol. . 39 « 39 „ Bombay pence to rupee 19 18) 184 Shanghai, pence to dol. . 14 17-32 14 63-64 Hong U.ong, pence to yen . 15 15 Yokohama, pence to yen * 14 1-32 14 1-32 Batavia, guilders 12.107 9.051 9.054 Warsaw, pur zloyts to £ I 43.36 — -i • Determined by price ot silver.