FINANCE AND COMMERCE

Press, Volume LXXIII, Issue 21985, 8 January 1937, Page 11

FINANCE AND COMMERCE

SYDNEY WOOL ' sales SPIRITED COMPETITION ; MERINO MAKES 35Sd fimITZD PRESS ASSOCIATION COPYRIGHT.) , SYDNEY, January 7. »t lu* Sydney wool sales to-day *IKU bales were offered, 11,160 being SiMeftbo hammer, and 805 pnwas spirited competition, and the market closed at the highest point * Buying f on‘ Japanese account was the outstanding feature. • . A new Australian record for merino, rf 35id per lb. was established. The average Price for three -days this week yas £24 2s 2d a bale, or 19.6 d per lb. ' - RECORD PRICES GEELONG SALES MELBOURNE, January 7. Three Australian records for the toresent season were established at the Geelong wool sales, when, in a very buoyant market, Japan bought freely. The records were 331 d for merino Beece wool. 37d for merino lambs’ Rrool, and Slid for comeback fleece. : £2l/16/10 A BALE REALISATIONS (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, January 7. The New Zealand Woolbrokers’ As- ■ aodatiqn reports that at the first Wellington wool sale, held on December 9, 30,126 bales were offered, 29,792 sold, and’334 passed in. The net weight sold was 10,681,7841b. Gross proceeds MAvcre £650.663 2s Bd, the average a bale £2l 16sT0d, and the average per 1b;14.619d. At last season’s, first sale, the’realisation was £l2 12s' a bale. ALKALI AND PAPER NEW AUSTRALIAN INDUSTRIES ' ■ . ■ . . ! '■'/y -v--- ' ‘ - . The establishment of important in- ' diiatries, including alkali and paper manufacturing, on a sound commercial basis in Australia early in 1938. is expected, It is stated that Imperial Chemical Industries is spending more than £1,000,000 on plant and machinery For manufacture of soda-ash, caustic soda, and bicarbonate of soda at Port Adelaide, with the probability of toect employment being provided for *OO workers, and of the displacement ■“/.piPOTts valued at more than (£300,000. I DISPERSAL SALE iQF CLYDESDALES : '\ _. - ' , MR JAMES F. LANGLEY’S • SOMERTON STUD *QP PRICE OF 150 GUINEAS ; /■■■ ;- — y . Syyep? hom Southland, Otago. Canter* »ury, Manawatu, and'Hawke’s Bay were , tbc sale of pedigree ClydesTOes from Mr James F. Langley’s Somcrr S3l, Clydesdale Stud, at the Ashburton eljowgrounds yesterday. The sale was folyygu with interest by many Ashburton there was a large number The top price was 150 Km o ’ given for the nine-year-old “mare by Fyvie—Lady Gay. with «nuy foal by Dunlop’s Renown at foot. »2kaia UrChaSer was Mr J ’ Gardiner * of whose stud has been es■apushed lor'ls years, has had consldersucces.s i* l the show rings of Canwhile he holds an . unbeaten •Sri , . six-horse team class at • Ploughing matches. His com°f Prize-taking harness at K2“gf*tng' matches was sold yesterday to ite Hawke’s Bay, for £67 horses were' all in excellent gananton. The sale was conducted by S».«7l, ew^,^ ea - and Loan and Mercantile Kgency i Company, lh conjunction with and Company. The Individual were as follows: ® j 5, Wattle Blossom, W; Baron. Bold—Nancy Lee, at lOOgns, Gr ant (Falrlie). o ears ! Lady Jean Superb, by , Superb-Myroe Lady Betty, t0 S ’ (Oamaru). &ou£nav£: years - Dorothy Footprint, by P, isco yery—Dora Footprint, at ■sj?®! to A) an Marshal! (Gore). Faiwu’ A?. yea rg. Blackberry, by Dunurc buw^SVi?, 1 } Mf j ry ; at 82igns, to Canter- ?« ultural College, Lincoln. 3>uhure pjfhJ ear n Fabric ’ s Flower, by ' jo ’G *o Empress, at 65gns, ami>bell (Rakaia). YDunure FahHr 31 ™ Fairview Queen, by t'Sßtens in■ Fab fi c ~P 0U R la s Blossom, at 0 A- V. Baker (Waitahuna). Ray of Hon^_W S A G]acJ y s Hope, by A^Carriifh«f~ B Smar t. at 84gns, to. Qtiald of nnM a f s ’ Somer ton Bell by Me tOG? Smart. at 82gn S vf"f> en zie (Clinton). 2tcQuald° n nf y^l,’, , 5o J ncrton Blossom, by Blossom at sn^ ht f rt X re r Hakaia Wattle . ley). , ougns, to J. .lowers (Kimber- ■ P o[oUl y Dunlop, by »• Bsronet—Ladv^gav B ? 11 Smart, by Fyvie ■ at 'lsogns to P a y- w jth Oily foal at foot. Fabric— Mona Rn'n a ?,f v G j, rl - b - v Dunure toot, at 4 d, T, wlth foal at Colt, one year l Brodie (Rangitata). sf : Hope— Sm^rt r ' ert ? n o? opc ' hy Ray 4 ’ at 32igns - to Ri|*o U pi»hf stered horses were Rowe years, at 56gns, to ht signs, to A Whvti m dl H gl four years - S? years at’ (Hastings); gelding. -Nor?^. R ’ D - Knight “ “«“• *>« YORK- CALL MONEYS January 6. , al l pe r c ™£ ey remain s un-

ECONOMIC ADVANCE

STOCK EXCHANGES BUOYANT AUSTRALIAN WOOL AVERAGES 19.6 D was an encouraging tone on the Christchurch Stock u L which reopened yesterday. The enhanced values on XC Australian exchanges, which opened earlier- in the week, the A reflected locally, several sales being, recorded at an were advance on the rates ruling on the eve of the appreciab of the sales put through yesterday all Christmas ion cQmpanies domiciled in Australia, although three of "them involved banks operating in both countries. at the Dunedin rabbitskin sale yesterday P eTsubSS advances on those of the last sale. - 0 average price for the three days this week of the Syd£24 2s 2d a bale, or lB,«d a pound.

LESSONS FROM DOMINION MIDLAND BANK REV'IEVV (TBOU ODB OWN CORRESPONDENT.! LONDON. December 16. “New Zealand’s experience during, the next few years may have much to show as to the speediest and most practicable lines of economic and social advance,” states the latest issue of the Midland Bank Review, in which prominence is given to an article dealing with recent legislation in the Dominion. . The Review states that, if New Zealand were not at the other end of the world, its affairs just now would be watched more closely than they are by students of economic structure and method. The opinion is expressed that the later results of recent legislation will be highly instructive for the world at large. The article describes what has taken place in the Dominion during the last year. It deals with the transformation of the Reserve Bank into a State institution, the Primary Products Marketing Act. and with the legislation concerning industrial law, social conditions, and public assistance. The decline during the year ended June last in the overseas funds, chiefly sterling, held by the banks together in New Zealand, is touched upon, and the Review states that this must have been due to the liquidating- of liabilities of one kind or another. It had amounted to no more than about £2.000.000, bringing the figure down to £44,000,000. New Zealand Currency , , “This amount may seem unnecessarily large, judged by New Zealand’s trading turnover and internal banking liabilities.” the article continues, “but part of it may still be the offset of .funds left in New Zealand by British owners in the hope of .some appreciation of the New Zealand pound in terms of sterling. i The Exchange Rate “The possibility of a change in the rate has never been lost sight of, since m 1930 the Australian and New Zealand pounds gave forceful demonstrations of their independence. There has always been a predisposition to assume. with little or no logical foundalion, that parity must one day be re** stored, and in respect to New Zealand the assumption was strengthened even before the new Government had actually taken office. Authoritative statements then mads suggested, when standing by themselves, a probability that the exchange rate would before long move closer towards parity with sterling. The ant kipations has been modified by later statements and D.y closer study of internal policy and , n J n J hor V’ the article concludes, “it now seems to be more clearly realised that an appreciation of the New Zealand pound m terms of sterling will not be easy to accomplish while a proi- , actlve r ® fl ation and expansion g nprsuod within the county, i this programme itself might he placed in jeopardy by hasty and oyer-amoitious. steps to remove the premium on sterling, which appears to be regarded in New Zealand as a particularly obnoxious inconvenience n< ? mo ; e Possible in New Zealand than elsewhere to walk forward with one leg and backward with the other.”

NEW CAPITAL ISSUES IN BRITAIN RECOVERY MAINTAINED LAST YEAR (BRITISH OniClAh WIRELESS.) RUGBY. January 6. New capital issues in the United Kingdom totalled £217,221,000 last year. This was close on £19,000,000 less than in 1930, the last year before the world depression, and compares with £88,666,000 in 1931, from which date a consistent annual recovery has been, maintained. Of last year’s issues, the municipalities’ and public boards’ group accounted for £481,000,000, the railway group for £31,250,000. and coal, iron, steel, and engineering, including motors and aviation, for more than £22,250,000. The investment and finance group approached £22,000,000.

RABBIT SKIN SALE SUBSTANTIAL PRICE ADVANCES (PRESS ASSOCIATION TELEGRAM.) DUNEDIN, January 7. The Dunedin Stock' Agents’ and Woolbrokers’ Association report that small catalogues were offered at today’s sale of • rabbitskinS to a fair attendance of buyers. , There was an excellent demand for all grades, especially racks and summers, which comprised the bulk of the * offerings. Prices for these grades showed a very substantial advance on the last sale’s rates. The following is a range of prices:—Summer brokens 31d to 3Ud'; second winter brekens 42d to 44£ d; runners 34d to 36d: summers 31d to 33d; small 24d to 25d: light racks 42d to 45d;, winter bucks 93d to 98d; winter does 84d to 86d; spring does 43d to 45d; bucks 64d to 66d; milky 32d to 34d; summer black 21d to 23d. Hare skins 22d to, 24d. Horsehair to 18d. PRICE OF SILVER (BRITISH OFFICIAL WIRELESS.) RUGBY,. January 6. Silver is quoted at 21 3-16 d an ounce for spot and 21d for forward.

ORIENT STEAM COMPANY DIVIDEND OF 5 PER CENT. EFFECT OF ABYSSINIAN AVAR (most OUB OWN COR RESPONDENT.) LONDON, December 19. "The account we have to give of our stewardship for the year under review is one with which neither you nor we can feel satisfied. Compared with a year ago earnings are down and expenses up,’’ said Mr I. C. Geddes, chairman of the Orient Steam Navigation Company, Ltd., at the annual meeting, held in London, when a dividend of 5 per cent., free of income tax. was declared on ordinary shares. The shortage in earnings was due to various causes. Passenger earnings were affected by the Italian campaign in Abyssinia. Owing to the uncertainties of the position many clients refrained from voyaging to Mediterranean ports, and this same cause affected holiday traffic even farther afield. On the cargo side the demand, 'of additional premia on V ar risks insurance on ships proceeding through the Mediterranean lost the company cargo. Homewards, many of the ships left with vacant space. The Problem of Empty Space “Empty space (said the chairman) may be the fault of ship owners collectively putting too many ships on the homeward berth, but very frequently it is not. No one can predict whether during the interval between a ship’s sailing from Europe and her loading in Australia good rains or the lack of .them will increase or reduce the primary products available for- shipment. Exporters in Australia naturally like to retain their freedom to take last minute advantage of market fluctuations in prices, by deferring as long as possible the decision whether to sell in Australia. Europe, or the East. While we rejoice when Australia gets the highest prices for her goods, we hope that whenever exporters or the various Governments concerned, for one reason or another, postpone to the eleventh hour a decision to reduce the forecast shipments to Europe they realise that their change involves wasteful expense which must in the long run be paid by the shipper. “If Australia wishes to have for her exports a moving platform which provides for considerable fluctuations in volume, ship owners will, of course, provide it, but they cannot afterwards be blamed for the wasteful use of space which will sometimes inevitably occur. If. on the other hand, Australia wishes for more economical transport, correct forecasting of her requirements would be a step towards securing it. “A better planned economy is very easy to advocate and very.difficult to. out into practice, and sometimes even beyond human foresight. ■ However, shippers, ship owners, and consignees are all. partners in Australia’s export .trade, and I cannot help feeling that, given goodwill, it should be possible without too much limitation to effect improvement. - . More Outward Cargo “Outwards there is more cargo moving, though there is still plenty of unfilled space. With an unbalanced trade homeward cargo has to help towards the cost of getting ships out to Australia. This, and the difficulty of securing reasonably precise cargo forecasts, are sometimes forgotten, when the rates of freight are under consideration. “Our expenses have increased by the restoration of cuts in the pay of our crews and of transport workers on short. These* cuts were suffered without complaint when conditions were at their worst, and I feel sure you will approve of their reinstatement now that the industry generally is in a healthier state, even though the fortunes of our own company do not this year reflect this improvement.” Speaking of the company’s decision regarding the payment of a dividend, Mr Geddes said: “If we re'gard the operations of the last 12 months by themselves we should certainly net recommend a dividend on the ordinary shares, but it would be somewhat artificial to consider this one pei’iod in complete detachment from the immediate past and the immediate futilre. In past years we have accumulated reserves out of profits available for ordinary dividends; we can afford the cash and we have therefore decided that the practical alternatives are whether we should anticipate a series of lean years or whether we should hope that earnings in the current year will again suffice to pay a modest dividend. “Under the former hypothesis, the sooner we shorten sail the better, but, if ’ “we believe that this is an exceptionally bad year, as we do, then we think it would be proper to pay a dividend on our ordinary shares. We should use part of our reserves to average results between the 'present bad and past better years. It is too early to say what next year’s results will be, but the indications are certainly better than they wore 12 months ago.”

TRADE AND ARMAMENTS » MISGIVINGS EXPRESSED LONDON, December 29. “If goods don’t soon cross frontiers, armies will.” In these words, a London business man summed up the international trade position. It is widely felt that, in spite of the, marked trade recovery in Britain—largely based on armaments expenditure—the outlook is not reassuring, in view of the worldwide restrictions on commerce. , It was believed that, as the depression passed, the shackles would be removed, or at least the leg-irons would be made lighter, but those concerned complain that there is a widespread tendency, to stiffen up economic nationalism, even allowing: for attempts by the United States to secure lower tariffs by agreements throughout the Americas and elsewhere, and for British trade treaties with various countries, some lowering inter-Empire barriers. / t Curiously enough, international trade is freer in raw materials and armaments than in most other things, A cynic might suggest that this free trade in death is a gesture of gratitude on the part of the leading nations for internal recovery and.the decrease in unemployment caused by the rearmament race which is not yet nearly over. / “Guns 01* Butter” , ft war does not come to speed up things, it will be two years before. Britain s rearmament passes its peak, and when that happens, what will follow if • outlets for the products of the plants at present engaged on armament-making are still blocked? ~n „ ° a v° er |i ain extent - the armaments I boom has been responsible for an ini and hi S he f prices for foodstuffs and raw materials, although n« d ,? U ]? ted !£ there is a genuine world need for those things which- would mean a permanently improved outlook if it were not for the cross-currents in national policies. . While restrictions are being loosened' in the production of some commodity?- is suggested that the tea remay be extended beyond 1938. However, efforts to rone in prodbeers still outside the scheme such as China and Japan, have so fai proved unsuccessful. Finally, it is suggested that some nations may soon refuse to accept the a t^ ve guns or butter,” and may butter ” y ° U haV ° guns you can get

PRICE OF GOLD LONDON, January 6. Gold is quoted at £7 Is s£d a fine ounce. ,