FINANCE AND COMMERCE

Press, Volume LXXII, Issue 21966, 15 December 1936, Page 13

FINANCE AND COMMERCE

BRITISH MARKETS FIRMER

DISCOURAGING OUTLOOK FOR

DAIRY PRODUCE

WEEK CLOSES FIRMLY

BRITISH MARKETS RESTRAINED BELIEF at settlement of CRISIS ([’KITED I'RT.SS kSSOas.TIOS-CUI'YUIUUT.) LONDON. December 13. The Stock Exchange ended one- of the most difficult weeks ever experienced with a firm tone. General relief at the settlement of the crisis led to marking up of prices, but actual business was at no time extensive. Investors throughout the week remained calm, keeping commitments to a restricted scale. It Was not disrespect for the former King that a recovery followed the news of his aodication, but rather the inevitable relief that the period of suspense had ended. Most City business men deeply deplore the bitter decision Prince Edward faced, and see him go with most sincere regret. Effects Not Yet Known It will take some time to determine the precise effects of the week's events on business. Pessimists say that the retail trade was affected, though one would never guess it from the congestion in Oxford street and from the week’s bank return. Industry was probably even less affected, and the crisis was over too quickly 1o have much influence. The international situation should again begin to reassert its influence, and the future movement of prices will largely , depend on whether Britain and France are able to continue to restrict the conflict in Spain. Butter Very Quiet Commodities generally were firm Butter continued to meet a featureless demand and was very quiet, but there was an attempt to stabilise the market at present values. There seems to be no prospect of much alteration jin the immediate future. The extra weight of arrivals due around Christ- ! mas is likely to lead to lower prices in } he New Year - with the poss.oiJity of a more stable market giving safer ground for buyers to operate. cheese also was lower, but a temporary scarcity of New Zealand led to ftS- hj!« Very ; The outlook is like Sl C iH b ter ~ for u ? int eresting marin It th ® P ros nect of lower values “ the New Year. J^ dsrs are unable to take an enQuantlttel tke egs market Srt n °f Empire eggs have been store in the hjo Pe of a January. The big increase ENGLISH APPLES INCREASING production COMPETITION WITH EMPIRE x AND FOREIGN FRUIT \t&OU OUR OWN CORRESPONDENT.) LONDON, November 21. Apples from English orchards will probably compete increasingly with those produced in the Empire in a few J*ars time. During the last 12 years Ehglish apple production has expanded ' enormously, and whereas only 25 hpples in every 100 eaten in Great ■ ntain during 1924 were home-grown, n. °j U l °f e Ydry 100 eaten in 1934 were Produced in the United Kingdom, rnese facts were given to the British CJuh by Mr H. V. Taylor, of z?' haitiistry for Agriculture and Fisheries, When he spoke in an unofficial P a sjty this week. Lord Bledisloe Presided. < aJ^ r ? ay l° r sa l < l that in 1935 the acre- ’ orchards in England and Wales £ totalled 262,115, which included an ex- j fn,,f 10n °f t'hOOO acres in the previous ] ttiLi ye^rs * The view, once held 1 Ipm * * ka t the English climate was favourable for apple production < thTtr °f P ar ts of the Empire and 1 fp.JJmteci States had been altered by \ work. This had convinced ‘ fanufu the climate was less at ( lhat n an the methods adopted, and c s p ra ying and manuring good Ps could be produced Enthusiasm for Efficiency fc a £ hardists had installed elaborate 1 S^ ca *aery for securing efficient spray- ‘ fee *h e larger growers had erected ftnns ° r^ s f° r storage. Packing sta- I ul PP e d with grading machinery 1 trW* common in most fruit dls- . j„j > apd the supply of expert graders • i - packer 8 was now large. The ] had developed an en*or efficiency that did not Had . years a §°- Furthermore, they attlr a P tured a spirit of adventure m 1 ket P r °duce apples of mar- c ' coupled with proper c sg^They f ffi r t a th ng ! packing r ' ld sto f: s eaiov ™ t u ths nome grower could 55 much more of the apple busi- g ii. «||l°4?,h apples had been produced a SaiotW./nV J n England for centuries, ■= hvelv -Jfay,? 1 ’’ it was only compara- Y bd L n ii^ n !l y that English growers 7 t°orcWa d tle real commercial sense , kets TN dl ” g aild Preparation for mar- ' Had hnilf a? e Y ila ble result before this aot bep„ iat - niai 'ket packages had , fruits wLP easing to the eye, and the . not praHoS rou 8h and blemished and Were & Pa a - .Imported apples, which jng, fefpt, Pccpat'ed for market- „ the highest prices, and £ bests lruit ' vas accepted as second _

"ia um Effect of Tariffs frfietradp ’ as * year in which cent If .S fc r a PPie imports, 58.5 °f foreiu'ri • e import apples were ? fcftuhff °^g in . and 41.5 per cent, ffscai D o ii r .l n^in - By a change in the foreign imports ol apples from M 4j 6d r. rces were subject to a tax p°rls fmrkr- cwt on entry, and im- & enter m ? lr . e sources continued Baylor. ree duly.” continued Mr

''The was instantaneous and *9UTces hL * supplies from foreign v‘ es from C I? definitely and supX®ar by v n ;P ire sources increased. k f avour If of Proportions changed 01 tht Empire so that in

Source of Supply

The week-end financial summary records that British markets, after having passed through a most disturbing week, ended firmer, though there was at no time any great activity. The general feeling is one of relief that the crisis has been settled.

The outlook for dairy produce remains discouraging. Butter is very quiet, and it is expected that the heavy arrivals about Christmas will have a depressing effect, but that lower prices may bring into the mar act more steadiness.

Wool is very firm in Sydney, where competition has widened. Some descriptions are 5 per cent, dearer than closing rates.

YEW ZEALAND RUTTER

SHIPMENT OP VICTORIAN ORANGES

The discharging of 1118 bushel cases of Victorian oranges from the Omana will begin at Lyttelton this morning. This consignment, which arrived on Sunday, is believed to be tho first to be sent to Canterbury from Victoria for many years.

Another shipment of Australian oranges will arrive at Wellington by the Wanganella, which is due to-day. and a consignment will be transhipped to Lyttelton. A shipment of Jamaican oranges will arrive by the Port Bowen, due at Lyttelton on Wednesday.

1934 the apples of the Empire formed 70 per cent, of the total imports and provided the conditions continue there seems no reason why this increase in Empire apples, at the expense of the foreign, should not continue. It is important to notice, however, that the total imports (more than 7,000,OOOcwt) in 1935 is much the same as the total imports in 1931.

“The trade lost by the foreign countries has been absorbed by the Empire countries and the quality of the apples of Empire sources proved as high as that previously obtained from foreign sources, so that few members of the general public realised that any change had been made. . . . Out of every 100 apples eaten in 1924 only 25 were grown in the United Kingdom; 27 were supplied from Empire sources and 38 from the United States of America. In 1934. out of every 100 apples. 57 were grown in the United Kingdom 32 were supplied from Empire sources and 11 from- foreign countries. It is true that crops in 1934 were heavy, but it indicates the higher quota to be expected from home supplies. “It is evident from these figures that growers in England and in other parts of the Empire are capturing more and more of the trade and in favourable years, such as in 1934. that the home grower is able to supply a much larger proportion of apples of a suitable market standard than hitherto. If the facts suggest that in a few years’ time the apples from the home orchards -will be in competition with those from or-1 chards in the overseas parts of the Empire to an increasing extent, it is only to emphasise the need for further propaganda by all growers, both home and Empire, to secure a higher consumption of fruit and, above all, the need for a better organisation of the industries at home and throughout the Empire to secure that the supplies from the Empire arc complementary to the heme grown and so prevent waste of fruit and money.”

SELLING CAMPAIGN IN BRITAIN EXHIBITION TO BE HELD AT | SHEFFIELD | (FROM OUR OWN CORKISI'ONDEST.) LONDON, November 21. i Continuing its successful Trade Rei ciprocity campaign, the New Zealand I Dairy Sales Division (formerly tho New Zealand Dairy Board) proposes to stage a special exhibition at Sheffield, one of the strongholds of Danish butter, during the Christinas shopping period. It is hoped that Mr W J. Jordan (High Commissioner) and Mr W. Nash (Minister for Marketing) will be present at the opening. The exhibition will be the fifth of its kind to be held in New Zealahd’s interests in two years. It takes as its model the methods employed at Nottingham, Birmingham, the Potteries, and Newcastle, where the results were eminently successful. A shop is rented from three weeks to a month in the heart of the shopping centre, and the goods bought by New Zealand from that city, in this case Sheffield, are ranged alongside New Zealand butter and cheese. A publicity campiagn k launched at the same time in the local newspapers, and every effort is made to focus public attention upon reciprocity of trade. This practical demonstration of the link between the Dominion and a particular city is regarded as one of the best means of increasing sales and one of the soundest arguments. An enormous number of samples were disposed of at the four centres at which the exhibition has been held previously —in Newcastle 15.000 three-quarter lb packets of butter were sold and several thousand cartons of cheese —and it was found by retailers that many people afterwards became permanent buyers The lasting effect of the exhibition was therefore proved. The Dairy Sales Division, which naturally continues the policy of the Dairy Board for the promotion of sales, keeps in close contact with retailers. and one of its latest methods of increasing the popularity of New Zealand butter is to send a demonstrator to shops desiring to give a fillip to this section of their trade. The demonstrator is assisted by a special window display and a “sampling machine,” which is used for manufacturing ilb samples of butter. These methods have raised the sale of New Zealand butter in particular shops by several hundred per cent, in a short period. Other methods of disposing of samples to the public are by selling them on Government stands at shows , and exhibitions. At the North London , exhibition at Alexandra Palace held recently 5333 persons took home with : them small portions of New Zealand • butter, while -many more thousand? ] saw the excellent display of general ■ produce. Since August 1, when the ; Dairy Sales Division first came into i operation, the number of samples sold to the public in all parts of England and Scotland has been: butter 15,000, cheese 2500. The majority of these 1 sales, have been made in shops where 1 buyers are usually more chary regard- j ing their purchases than they might be at an exhibition, where curiosity is \ often a strong motive for inducing them to dip into their pockets. J These are a few instances of direct 1 methods of sales producing. Indirect ! methods are also fostered, such as by I placard and poster. For the last two 1 years £40,000 has been spent purelv i on pushing the sales of New Zealand ; butter and cheese throughout England , and Scotland. !

Effect of High Prices

C.F.M. Products Popular

Increased Operating- Costs

A SATISFACTORY YEAR

CANTERBURY FROZEN MEAT COMPANY

FIFTY-FIFTH ANNUAL -MEETING

! The fifty-tilth annual general mect- | ing of shareholders of the Canterbury j Frozen Meat and Dairy Produce Export I Company, Limited, was held at the I head office of the company yesterday I afternoon. Mr John Deans (chairman of directors) presided, and there was a I good attendance of shareholders. | At the outset, the chairman explained : that for statutory rca-ons it had not I been possible to postpone the meeting. | However, before (h<> business of the . meeting commenced an adjournment of 10 minutes would bo taken at 2.30 o'clock, during the reading of the proclamation of his Majesty King George VI. The adjournment was accordingly taken, and the reading of the proclamation was heard in the meeting room by radio. Chairman’s Address “We are pleased to be able to place before you the results of another successful year’s work." said Mr Deans, in presenting the annual report and balance-sheet (already published). “Though the profit is slightly less than that shown last year, it has been possible, in addition to paying the same dividend as in recent years, to add to our reserve fund, which is still £55,000 short of the reserves shown in cur balance-sheet figures in 1928 We have also provided depreciation for our buildings and plant, which now stand in our books at a very rea- ! sonablc figure. All stocks and other j assets have boon valued on a conserj vative basis, and a large proportion is i in liquid form —an advantage in a busij ness of this sort where cash requiroI ments vary so much from time to time, .. The company is in a sound financial position, and able to deal efficiently with any business which may be cn--0 trusted to it. s “A considerable sum has been spent - during the year in replacing building;; . and plant which were worn out. and in bringing our various works up-to-date, ." Last year, I expressed tho opinion that we should not require to spend very l ' much more in major repairs, but I am 1 sorry to say that this view was not justified and there are several buildings 5 which, owing to age or the unsuitability ■ of materials available during the war 5 period, will require replacing and re- - pair. At the same time. I can assure • you that on tho whole, our works arc ■ now in first-class order, and arc cap--1 able of dealing expeditiously and eco--3 nomically with all the stock our friends ? entrust to us. * Improvement to Works r “All works are now equipped with - the dry-rendering process for offal j which has proved so successful since ? we installed the first plant at Belfast . The fellmongcry at Belfast has undergone extensive repairs, and the old , stokehold block in the centre of the . works has been utilised in the hous- . ing of fitters, electricians, carpenter . and painter, also the chemical labora- . tory. This central situation should . conduce to more economy of time and labour in all repair work, and will also I . allow the demolition of several old ! wooden buildings which have oultived ’ their usefulness. 1 “At Fairfield, an Iwcl Laabs dry- 1 rendering plant has been installed, and our three works now manufacture a * uniform product, for which there is a 1 most satisfactory demand. The fell- 1 mongery there has been enlarged and £ rearranged, which will mean a dis- : tinct gain in working efficiency. We c hope to carry out somewhat similar < work at Pareora during the coming t year. This will show a considerable i saving in working cost over the pres- t ent arrangement. You may think that c we are overdoing the replacements 1 and repairs to our works, but we are merely, as I have said on previous i occasions, catching up on work that had to be postponed during the lean j years. Every project ie carefully f scrutinised before being authorised, c and the sum total gained by these al- s terations in efficiency and reduced working costs is very considerable. c “I may perhaps mention that the - extensive repairs and replacements „ effected during recent years not only provided work during a period when t unemployment among all trades was very great, but it enabled the com- ? pany to effect repairs, etc., at a price 11 very much less than the materials used and labour employed would c cost to'-day. y a Thanks to Fanners p “We have again to thank the farm- a ers of Canterbury for their loyal support during the last season. This com- tl pany was founded 54 years ago by 1; farmers to provide for their own f; freezing requirements, and the tradi- d lion of service to the producer has b been strictly adhered to for over half d a century. It is not our policy to c earn excessive profits in order to pay e large dividends.. We arc in business n to deal with stock sent to us for treat- p ment and realisation. It is our object u to obtain for owners of that stock, p whether large or small, the best re- p turns possible, consistent witii prudent s , finance and a reasonable return to p our shareholders. We afford farmers „ the widest possible latitude in disposing of their stock, and claim that j. nowhere else are the same facilities available. It is on these grounds, , and cn the fact that we have always s kept the ‘open door’ to owners of ° stock that we base our claim for the 81 continued and increased support of the farming community. “ “Overall price levels during the last season were remarkably steady, starting at 7z<]. rising by farthing steps e: to a maximum of BJd in March, and a varying between 8d and B|d, from that P time to the end of the season. These ai prices ensured a good return and tho n majority of farmers decided to take r: them and not run the risk of ship- rr ping on their own account. Those H who shipped, particularly at the end of the season, had no reason to regret their action.

“In this connexion, experience seems to show that high prices for lamb in London act as a very definite brake on consumption. The housewife in England has apparently a more or less fixed amount to spend on meat, and is forced on to a cheaper class of food if prices go too high. That is one reason, of course, for the popularity of the smaller carcase. Tho same rule applies to wool. Extremely high prices are dangerous, as consumers have to use cheaper materials, and find substitutes in artificial goods, however inferior they may be. Wool has undoubtedly gained ground in recent years, and it will be nothing short of a disaster if prices soar so high that substitutes are given access to markets in which wool has so far been supreme.

"The utmost care has been taken to maintain the standard of C.F.M. products, a care which is reflected in the prices obtained for them in overseas markets. As in the case of meat, so in all other lines marketed by us—there has been a ready demand at satisfactory prices. “This is the surest test of quality, and no uncertain indication of the reputation which our brands enjoy in the markets of the world. This reputation is founded on the skill and care of those entrusted with the supervision and carrying out of the various intricate processes involved in the operations of modern freezing works.

“As you know, recent legislation has resulted in very largely increased wages and operating • costs, and our business has not escaped. The exact effect of these increments on the cost of handling and freezing stock is not easy to estimate, but has been calculated at somewhere round £450,000 for the Dominion. To meet this extra cost the freezing rate will have to be increased, but our clients can rest as-

sured that we shall keep this increase as low as possible.

The Home Market

“It is to bo hoped that the Hon. Walter Nash and the chairman of the Meat Board, who are at present in London, may be successful in making satisfactory arrangements with the British Government for the absorption of our meat by the Home market. If this can be done, and I see no reason why some extension on the basis of the Ottawa agreement for a term oi years should not be arrived at, the future of the industry looks bright. Wo claim to have a manufacturing and selling organisation able to deal efficiently and well with our proportion of the stock of New Zealand, and at the same time, give you a reasonable return on your capital. Fat Lamb Competitions

“We have as usual co-operated with the Meat Board and the various Agricultural and Pastoral Associations of Canterbury in holding export Jamb I competitions at our works. These comj petitions are most valuable from an educative point of view, and I am pleased to say arc becoming increasingly popular with those who arc most directly interested—(lie breeders of our lambs. May I again lake this opportunity of stressing the importance —the vital importance—of breeding the right lamb for the market. We cannot expect to be paid the highest price for a commodity which is not what the buyer wants. Our lamb trade has been built up on quality, and quality alone will hold it Thanks to the Staff “In conclusion, I wish to commend most highly the work of the staff for the last year. We have, through death and the incidence of age, lost the services of some of those who helped to build up our business, and who well earned our thanks for good work well done. Their places have been filled by those who I am convinced will carry on the good tradition, and I am confident that to-day we have a staff who, under our able general manager and secretary. Mr Shea, will continue to serve the company loyally and efficiently.” Mr Deans then formally moved the adoption of the report and balance- i sheet. | In seconding the motion, Mr Herbert Eiworthy said that, if it was not for the staff and their able work throughout the year, the directors j would not have been able to present i such a very satisfactory balance-sheet, i Directors Complimented I Mr W. S. Newburgh, in compliment- | ing (he directors on the satisfactory! position disclosed by the report and i statement of accounts, said it was re-. markable that they had succeeded in 1 showing a profit for the year, which was down by only approximately £IOOO. Because of the trying year experienced, lie had anticipated that it would be down by several thousands of pounds, more especially when the increased costs due to recent labour legislation were taken into account. Mr Newburgh said he wished to endorse the remarks of the chairman about the sound position in which the company was placed. With the* company holding something like £120,000 of reserves in first-class securities, ho was sure the shareholders were not (laving any sleepless nights. Another shareholder said he would like to draw public attention to the wonderful facilities the company provided. Directors Re-elected The chairman announced that, as here had been no other nominations, Messrs John Deans and John Grigg. he retiring directors, were re-elected ,o the board. Mr J. Mawson Stewart vas re-elected auditor. On behalf of the shareholders. Mr R. D. Dixon moved a vote of thanks to he directors for their services during he year. As a son of one of the early iupporters of the company, he was in i position to appreciate the excellent :onduct of the affairs of the company wer since its inception. The success of he company was due in no small neasurc to the fine stamp of men on he directorate —men who had never leparted from the traditions cstabished by their forbears. Mr C. Bean seconded the motion, vhich was carried by acclamation. In returning thanks, Mr Deans said t was traditional that the company had Jways moved along safe, possibly onservative. lines; and in point of the uccess of its policy, it might be menioned that in all its many years of perations it had only missed one halfear’s dividend. This was, he added, a ood record. The company’s business ras one that required very, very careul handling, and the directors would ee to it that this policy was continued i the future.

“So long as we are here.” he qoncluded, “we will continue to protect your capital and at the same time afford every facility possible to the producers in the treatment and realisation of their fat stock. . Mr Bean moved a vote of thanks to the staff. It was to the staff very largely that they owed the very satisfactory balance-sheet presented that day—not that he wished in any way to belittle the work of the directors. The directors were the guiding stars of the company, and the staff faithfully and efficiently carried out their policy. The company was fortunate in possessing an excellent staff, and in this connexion he made special mention of the general manager and secretary, Mr D. J. Shea. The staff deserved the thanks of the shareholders: he knew that they had already received the thanks of the directors. The chairman said that no one knew better than himself the excellent work the staff put through. He could assure shareholders that they had a staff second to none, right through the whole service.

The motion was carried by acclamation.

In returning thanks. Mr Shea said he would see to it that the meeting’s expression of thanks was passed on to all the staff throughout the company. As the years went by the management of the company’s business did not become any easier. To-day, owing to rapid changes in world conditions and market fluctuations, there was very little chance of a “let up.” (Extended report by arrangement.)

£28,843

LAND COMPANY’S YEAR

UNSATISFACTORY RESULT

profits decrease by

U'Kuil OUR OWN CORRESPONDENT.)

LONDON, November 25. “The year's result is again unsatisfactory, I regret to say,” said Mr R. A. Murray, chairman of directors of the New Zealand and Australian Land Company, Ltd., in his address to shareholders at the annual general meeting in Edinburgh. “The actual net profit on the year’s working of £4023 compares with the previous year's figures of £32,866, and it was necessary to draw upon the contingency fund to cover the payment of the dividend on the preference stock. While desirous as soon as possible of resuming the payment of a dividend on the ordinary stock, I wish to reiterate the previous expressions of the directors' intention to build up again the contingency fund when profits are available.” Dealing with the accounts, Mr Murray said that income from investments and money on deposit at £24,753 was £973 less than in the previous year. Commission and discounts amounted to £7817 compared with £48,703 under the heading commission, discounts and exchange in the preceding year’s accounts, a reduction of £40,886. The reason for this large difference was that whereas formerly the premium on remittances to Australia, after certain adjustments, was included as a credit under this heading, it had now been set off in the exchange account against the debit for exchange difference between the sterling proceeds of wool sold in London and the Dominion equivalent. After providing also for exchange on capital expenditure and on cash 'and bank balances in the Dominions, the exchange account showed a debit balance which appeared as a separate item on the debit side of the profit and loss account. Against this apparent setback the profit from working the properties at £107.904 was £46.353 greater, which was more than accounted for by exchange difference on sterling wool proceeds amounting to £78.181. Omitting this credit, the profit from properties would have shown a decrease of £31,828. Formidable Taxes

j An item showing a material variation was British and Dominion taxes. I which at £46,839 were £2929 less than ! last year. The total, however, was still formidable compared with the profits earned either in the year under review or in the previous year, and approximately two-fifths consisted of taxes which had no relation to the company’s assessable income and were payable irrespective of whether or not a profit is earned. On the assets side of the balancesheet freehold and leasehold lands totalleo £2,986.104. a decrease of £34.996. Working plant had increased by £15,455 to £79,034. The amount owing by purchasers of land at £75,822 was less by £2206. The position was being closely watched in the case of those purchasers who were considerably in arrear in their payments. Live stock showed the large reduction of £93,195, this year's total of £263,591 comparing with £356,786 a year ago. The biggest decrease was in sheep, but cattle also showed a substantial decline. The reason in each case was the smaller number on hand and was due to the Queensland I drought. Stores, material, etc., were £10,806 lower, duo principally to the reduction in the quantities of slock feed on hand. Sundry debit balance were £13,480 higher at £42,403. Of this, £6OOO represented payment of the deposit on the purchase of Ellerslie, New South Wales, and £7197 the value of improvements on a resumed area, which had been transferred to a suspense account pending determination of the sums to be paid for improvements by incoming selectors. Produce on hand showed a small decrease of £956. Investments totalled £583,586 compared with £577,963. an increase of £5623.

Cash on hand, in bank, and at call, amounted to £251,914. compared with £175,249, but whereas the exchange difference to convert the Dominion cash balances at the ruling rate of exchange was formerly included in exchange suspense under the heading “Sundry Credit Balances” on the liabilities side, it was now deducted from the Dominion balances in cash on hand, in bank and at call. On the liabilities side there were three items in which there were variations calling for comment. Contingency fund was down by £30.000 through the transfer of that sum to profit and loss account. Insurance funds stood at £82,821, and showed a satisfactory addition of £3536. Sundry credit balances amounted to £92,107 and were lower by £6573. This was the resultant of variations in the necessary provision for taxation and current liabilities. Decrease in Lambs

"As a result of seasonal vicissitudes the total number of lambs marked on all our properties, including New Zealand, was 202,597, compared with 253.H09 for the previous year, and the average death rate rose from 10.60 percent. to 18.24 per cent.,” said Mr Murray. “Sales of sheep were greater, largely owing to forced sales on account of drought, and as low prices had to be accepted in such cases, the revenue was further affected and the balance of profit on tire sheep account showed a serious decrease. The total book number of sheep and lambs at March 31, 1936, was 237,351 lower at 891.838. The profit earned on our two New Zealand properties showed an increase and the operations for the year proceeded satisfactorily unhampered by vagaries of season or prices. “The statistical position of the wool industry appears fundamentally sound, ine Australian din is estimated at 3,036,000 bales, and will show little change on the actual production of 1935-36, while the South African clip is expected to increase from 752,600 bales to 833,000 bales. New Zealand j production will also probably be slightily larger. On the other hand, there | ere definite shortages of wool in some manufacturing countries, and in all the principal buying countries purchases of wool pass rapidly into consumption, and no accumulations of stocks exist. We may hope, therefore, for a favourable selling season, although the company’s clip will again show a reduction due to the smaller number of sheep shorn. “In New Zealand the work of the properties has proceeded normally, but I regret to say we are faced with much heavier taxation and mounting costs, as a result of legislation passed by the Labour Government now in office. While we all sympathise with the object of raising the general standard of living, one may question whether there is not a danger of some of the measures adopted having the reverse effect through raising costs to such a point that industry becomes unprofitable and activity starts to decline. Artificial Fibres

“No doubt recent developments in connexion with artificial fibres will have come to the notice of most stockholders, and even if many of them are not familiar with details of the different products, of their uses and potentialities, they will be aware of the rapid growth in production, their cheapness, the improvement in the finished products and the great amount of research work which is directed towards still further progress. In spite of the striking advance in the world output of rayon there has been no falling off in world demand for fine wool, the consumption of which is well maintained, and although no one can say definitely what the future may bring, there is a considerable body of expert opinion which regards staple fibre and wool as complementary rather than competitive, and believes that by combining the two fibres the range of

PRICE OF SILVER

products into which wool can enter will be considerably extended. Their use m conjunction may thus be to the benefit of both.

“Reviewing the last few years, I would have no hesitation in staying that international foreign exchange difficulties and restrictions, import quotas, tariffs and political difficulties have been far more damaging to wool than the competition of any other fibre. With the great improvement in economic conditions in this country and signs of an increasing disposition among the nations to co-operate in exchange and currency policies and to remove as many as possible of the hindrances to international trade, one may take fresh confidence in the future outlook of wool."

LONDON, December 12. Silver is quoted at 21 3-16 d an ounce for both spot and forward.

FOREIGN EXCHANGES (IUUTJSU OFFICIAL WIRKPEHS.) RUGBY, December iz. Pa r. Dec. 11 Dec. 12. Paris, Jr. to £1 New York. 124.21 105 11-64 105 11-64 dol. to £1 Montreal. 4.866 4.90 3-16 4.90 3-16 dol. to £1 Brussels, 4.866 4.893 4.89.3 belgas to £1 Geneva. 35 28.99 29.001 ir. to £1 Amsterdam. 25.2215 21.33 21.33 fl. to £1 Milan, lire 12.107 9.001 9.001 to ' £1 Berlin, reich92.46 93 3-16 93 3-16 marken to £1 Copenhagen, 29.43 12.18 12.18 kr. to £1 Stockholm, 18.139 22.40 22.40 kr. to £1 Vienna, schgs. 18.159 19.391 19.391 to £1 Prague. 34.585 261 261 kr. to £1 Helsingfors. 164.25 1381 138 19-32 marks to £1 Madrid, pese193.23 2263 2263 tas to £1 Lisbon, escu25.2215 — “ dos to £1 Athena, drach 110 110 3-16 110 3-16 to £1 Bucharest. 375 5471 5471 lei to £1 Belgrade, 843.6 620 620 dinars Rio de Janerio, pence to 25.2215 uiJ 213 milreis Buenos Aires, 4.899 41 41 pence to dol. Montevideo. 51 — pence to dol. Bombay, pence * 39 i 395 to rupee Shanghai, 19 13 9-64 18 9-64 pence to dol. Hong Kong, * 14 17-32 14 17-32 pence to yen Yokohama. 14 15-16 14 15-16 pence to yen Batavia. 13 13 guilders Warsaw, par 12.107 ■ — — zlotys to £1 43.36 — * Determined by price of silver.