FINANCE AND COMMERCE

Press, Volume LXXIII, Issue 22017, 15 February 1937, Page 11

FINANCE AND COMMERCE

THE ARMAMENT LOAN

DOMINION BREWERIES NEW ISSUE

London finance is still puzzled over what effects the financing of the armaments programme is likely to have on business, and according to the week-end commercial summary security prices have been alternately depressed and more cheerful. Dominion Breweries, which have had a keen and rising market on the Stock Exchanges recently, have announced an issue of 40,000 £1 shares at a premium of 7s 6d. The expands"-' sion of the firm's business has made new capital necessary, but it is proposed also to establish a new line. Though wool has fluctuated on the British and Australian markets, the outlook is considered to be still very sound. Heavy German purchases of South American wooL. are reported. Butter remains unsatisfactory. The market is lifeless and Continental makes are enjoying a price advantage.

FINANCING ARMS EXPANSION

COMPANY NEWS

London Business Puzzled .WOOL OUTLOOK SOUND (VKIT*P PBEOB *.B3OCI*TIOK—COIttRIOBT.) (Received February 14, 6.30 p.m.) LONDON, February 13. The City, which for weeks has gloomily expected a blow on the chin, has found that the rearmament programme rather resembles the kick of a mule, but it is still in the dark as to how Mr Chamberlain proposes to set the financial machinery in motion. The "stable secrets" whispered a few weeks ago fa the effect that " there would be no new borrowing before the autumn are regarded as still sub* stantially' correct. The "Investors' Chronicle" expects that the first instalment of the defence loan will total round £00,000,000, v/ith income tax at 5s and 1 increases in indirect taxes, It considers that the Bank of England must increase the supply of bank cash to enable the banks to support gilt-edged securities, There is no reason why the defence loan should precipitate inflation if recovery con-; tinues. ' . . , The Immediate view of the markets | is that there is nothing at present to go for, consequently quotations for most securities, excepting armaments, are marked down. Gilt-edged industrials have suffered a severe setback. Butter is still irregular. Last week's advance resulted in a cessation of Interest. There is little help ' for the | position from the speculative view- J point, and fluctuations must, be ex» <pected for some ,time. Continental •/butters still command a. useful pret rnium over New Zealand and Aus- | ■traliah. but traders expect it to be narrowed in the immediate futuresShipments of Australian eggs, have almost ceased. Copra has become firmer on the market though prices have moved er* ratically. .Consumers are showing' moderate interest, and short sellers are seeking cover. The irregularity of wool prices at Australian centres has created a similar tendency 'in Bradford, where prices aire tending in favour of buyers, who are anxious to know the basis on which the Japanese are' likely to buy for the remainder of the season. The recent fluctuations have made them hesitant in placing orders. The outlook,' however, is regarded as promising, especially in view of reports that Germany privately bought the bulk of the Argentine summer clip at.a price above that which world buyers paid for the winter clip, It is stated in well-informed circles that 40/46 counts cost Germany 20Jd. • ~ A , . The "Financial News" considers that •unless the weather in North Amenca is exceptionally favourable, wheat would go higher in the . next few months. , ■ '..''■'

BRITISH TRADE BALANCE IMPROVED

(Received February 14, 8,28 P-mO LONDON, February 13. ' Financial writers point out that British exports are the highest in any January since 1930, causing an encouraging fall in, the adverse balance of trade, compared with December. Imports, however, are highest for seven years. ■■'. MIKING i NEMONA The Nemona return, of 240z. represents about two days'dicing in virgin ground, the rest of the time through old tailings. After pother week's work the be QperWHITE'S ELECTRIC The return from White;s dredge for the week en 11 was 41oz lldwt froi.. . „~~ treated in 130 hours. NEW RIVER The New River return for the week ended February 11 was 28oz from HUUU yards, treated in 94 hours. MOSSY CREEK (P*E»a ASSOCIATION I'ELSGKAM.) GREYMOUTH, February 14. The Mossy . Creek return is 260: I7dwt for 12,848 yards in 132 hours. TALISMAN DUBBO • A total of 52 tons cf ore were treated at the Golden Dawn battery for an approximate realisation of *-•»'*"•, ; ,GPLPEW,S'^PS' The Golden Sftrtd/' .return 4s 550z lldwt for' 4« Shift* of eight hoi- ; ,,v-wft The Gillespie's Beach return is 930z I4dwt for 128' hours.

PRICE OF. GOLD

FOREIGN EXCHANGES

(BRITISH OfriCHt. WIMLESS.)

STOCK EXCHANGES

G. J. COLES RISE SHARPLY

ACTIVE MORNING CALL -The outstanding feature on call on Saturday morning was the sharp rise in G. J. Coles. Broken Hill Proprietary, Electrolytic Zincs and Mount Morgans also showed recovery.

DEALINGS COMPLETED

DOMINION BREWERIES* NEW ISSUE SHARES OFFERED AT PREMIUM OF 7/6 I'l'HE PRESS SpecUl Service.] AUCKLAND, February 14. A decision to raise an additional £55.Q00 capital by the issue o£ 40.000 ordinary shares of £1 at a premium of 7s 6d, has been made by Dominion Breweries, Ltd. The offer is bei..g made in the first instance to shareholders in the proportion of one share for every four shares held.. In a circular to shareholders, the directors state they consider the time opportune for the installation of an up-to-date plant for the mewing of the Continental, type of lager beer. Furthermore, the growth of trade experienced by the company has created a necessity for further extensions and improvements to the plant and buildings. Existing -facilities were barely able to meet the demands during t:.e Christmas period. The premium on the shares allotted will be applied exclusively as an addition to the company's existing general ree..'ve fund, The circular also comments upon the sound development of the brewery and the highly satisfactory progress made during the current, financial "ear- .- The company has a nominal capital of £250,000. Paid capital at March 31, 1036, was £108,519. The ordinary Shares were quoted on the Auckland Stock Exchange on Saturday at 44s buyer and 45s seller. During the last week the shares established the reco-d price of 455. A similar hsue of shares was made in September last year, when 40,000 ordinary £1 shares were Offered at £l, with premium of 2s 6d a share. HUDDART-PARKER (PpgSR *SSOCUTIOM TBHatliU.) WELLINGTON, February 14. Huddart-Parker, Ltd., has advised the ! Stock Exchange Association that, subject to audit, a dividend on preference shares of 3 per cent., and a dividend on ordinary shares of 4 per cent, wi-i be payable on March 20. The register will close Lorn March 11 to March 20. DAIRY PRO MARKETS | LONDON PRICES (rjuess *»socu.tiow t«lbo*aw,> -WELLINGTON, February 13. The following information is supplied regarding the London markets by the Primary Products Marketing De- ! partment, which has received a cablegram from London: — Butter—New,Zealand, salted, 85s to 86s; unsalted, 945; deliveries, 2596 tons: in store, 4826 tons, including 18,090 boxes on the Ruahine. Retail prices are unchanged, and the . market is quiet. 'Cheese—New Zealand, white, 52s to 545; coloured„s2s to 52s 6d; exception-* al, 535: deliveries, New Zealand, 20,522 crates; in store, New Zealand, 42,410 crates, including 4397 craves on the Ruahine. Retail prices are unchanged, and the market is firm at the close on available short supplies.

LONDQN, February 13. Gold is quoted at £7 2e 2d a fine ounce.

Loan and Agency Goldsbrough, Morts were firm with buyers and business at 38s Id, Beliefs at 38s 2d, N.Z. Loan and Mercantile ordinary stock advanced to £43, buyers staying in at that price, sellers at £45. N.Z. Refrigerating contributing wer«i fractionally weaker with buyers ana business at 9s 2d, sellers at 9s 3d. A late sale of Westport-Stockton Coal on Friday was reported at 2s, and there was further business on Saturday at that price.

Miscellaneous

New Zealand Breweries rose to 58s, market closing 58s buyers, 58s 4d sellers. British Tobaccos were steady with buyers and business at 51s 7d. Broken Hill Proprietary advanced to dealings at 81s 7d and 81s 6d, buyers, staying in at the lower price, sellers at 81s Bd—the contributing were firmer on buyers' offers 68s sd. Dunlop Perdriau Rubbers remained unaltered with sellers and business at 19s Id. Electrolytic Zinc ordinary advanced to 55s 5d and 55s 6d, and these were buyers' and sellers' closing quotations respectively—buyers of the preference raised their bids to 50s 7d, sellers at 575. A late sale of G. J. Coles on Friday was reported at £5 6s—the market on Saturday opened at £5 lis. and closed at £5 13s, buyers staying m at the highest price; fillers at £5 19s. Morts Dock moved up to 13s sd, closing quotations Id on either side. Taranaki Oils had business at 2s lid, but later eased to 2s 7d, market closing 2s 7d buyers, 2s 9d sellers. Waldas Shoes were firmer on buyers' offers, 295. Mining * Mount Lyells were a shade easier at 44s 4d and 44s 3d, Mount Morgans advanced to 17s Id and 17s. Rawang Tins were a shade firmer at lis 4d. Unlisted Stocks Selfridges (Australasia) cum Tights were easier at 39s lid and 40s. Woolworths (Sydney) ordinary had dealings at £8 12s and £8 12s 3d, and j more were offered at the higher price, 'buyers at £8 lis 9d.

SHARE PRICES FLUCTUATE

LOAN TO GERMANY

REPORTS DISMISSED AS "STRAW MEN" (Received February 14, 7.6 p.m.) WASHINGTON, February 12. *Mr Cordell Hull (Secretary of State) said that he had heard nothing through official channels or otherwise to support the rumours of a loan to Germany., He termed the reports "straw men." [The New York "World Telegram," in a prominently displayed article, stated on February 10:/' British representatives are laying the groundwork r re to make this country receptive for another loan to Germany, according to feports *rom Wall street" ,It was stated that reports persisted, in spite of official denials that such a loan was being urged as the only way of preventing a Euiopean war. proposal was linked with the visits to the United States of Mr Walter Runciman (president of the Board of Trade) and Sir Otto Niemeyer.]

WAR LOAN ANNOUNCEMENT (■BRITISH OFFICIAL WIRELESS.) RUGBY, February 12. On the Stock Exchange, the defence loan announcement aroused considerable interest and at first some unsettiement. Later a more optimistic view was taken, and British funds, after being marked down 2s 6d to, 15s. showed a good recovery with war Loan, 3| per cent., at £lO3 7s 6d, after having touched £lO3.

SMITHFIELD MARKET

LAMB PRICES STEADY

EWES SLIGHTLY HIGHER The New Zealand Meat Producers' Board advises that the following are the approximate average prices realised for the week, .based on actual transactions of wholesale quantities of the descriptions of meat mentioned, and are for representative parcels of the goods offering during the week, being for business done on the basis of delivered to Smithfield market, and/or ex London stores. (Prices for the two previous weeks are ais>o shown): — p er Feb. Feb. Jan. 12 5. 29d. d. d-

THE METALS MARKET

PRICE OF SILVER

(BRITISH OrriOllL ITIBgLESS.) RUGBY, February 12. Silver is quoted at 20 l-16d a fine ounce for both spot and forward.

: BRITISH TREASURY BILLS (BRITISH OrHCIAL WIRELESS.) ' RUGBY, February 12. The total amount applied .for in tenders for £35,000,000 Treasury Bills was £69,070,000. The average rate per cent, for bills at three months was 10s 4.70 d, against 10s 5.04 d a week ago.

N.Z. PRAISED FOR GRASS BREEDING

SYDNEY, February 13. Sir Basil Brooke, Minister for Agriculture in Northern Ireland, on his arrival in Sydney from New Zealand, said that agricultural methods in New Zealand and Australia were as modern as any in the world. New Zealand appeared to be far ahead in grass breeding. He was having samples of white clover and rye sent' to Ireland for experimental purposes..

" 'V ' '..' . . RUGBY, February 12. Par. Feb. 11. Feb. 12. Paris, fr. to £1 124.21 1053 105 9-64 New York, dol. to £1 4.866 4.89 11-16 4.89 7-16 Montreal, '■;■.,' dol. to-£l 4.866 4.89J 4.892 Brussels, belgas to £1 35 29.041 29.03J , Geneva, , fr. to £1 25.2215 21.454 21.454 Amsterdam, fl. to £1 12.107 8.983 8.99$ Milan, lire to £1 92.45 . 931-32 92 31-32 Berlin, reichmarkento £1 29.43 12.171 12.17J Copenhagen, kr to £1 18.150 22,40 22.40 Stockholm, kr. to £1 ,18.159 14.391 14.39J Oslo, kr. to £1 18.159 19.90 (19.90 Vienna, schgs. to £1 34.585 264 261 Prague, kr. to £1 164.25 1401 140g Helsingfors, . marks to £1 193.23 226J 2261 Madrid, pesetas to £1 25.2215 — -~" < Lisbon, escudos to £1 110 1102 110 3-16 Athens, draeh to £1 375 s 547 5471 Bucharest. lei to £1 .483.6 " 670 670 Belgrade, dinars 25.2215 213 213 Bio de Janeiro, 3; . pence to ■ ■■ ■ milreis 4.899 4 * 4J Buenos Aires,pence to dol. 51 ., — ■. ■ ""~ Montevideo, pence to dol. * . 391 39a Bombay, pence to rupee 10 ''.'■ -''; 18 9-64 16 9-64 Shanghai, < pence to dol. • ..'■ ' 144 "1 Hong Kong, pence to yen ■.■•. ■ . 14 15-64 14 15-64 Yokohama, 'pence to yen 'V ■"'.'".' 13 31-32 13 31-32 Batavia, - guilders 12.107 8.941 8.931 Warsaw, par '■' zlotysto £1 43.36 25,84 — ♦Determined by price oJE, silver.

LISTED STOCKS Sales on 'Change £ s. d. lOO'Goldsbrough. Mort 1 18 1 £560 N.Z: Loan and Mercantile (ord. stock) 43 0 0 100 N.Z. Refrig. (10s pd., cum div.) 0 9 2 300 Westport - Stockton Coal 0 2 0 50 New Zealand Breweries 2 18 0 50 British Tobacco 2 11 7 325 Broken Hill Propty. (2) 4 1 6 4 1 7 (4) 4 1 6 100 Dunlop Perdriau Rub,j_ ber 0 19 1 150 Electro. Zinc (ord., cum div.) 2 15 5 (2) 2 J5 6 50 G. J. Coles 5 11 0 5 13 0 100 Morts Dock 0 13 5 450 Mount Lyell (6) 2 4 4 350 Mount Morgan 0 17 0 0 17 1 (4) 0 17 0 Sales Reported 500 Westport - Stockton Coal (late sale Fri.) 0 2 0 50 G. J. Coles (late sale Fri.) 5 6 0 500 Taranaki Oil 0 2 11 0 2 7 350 Mount Lyell 2 4 3 140 G. J. Coles 5 12 6 5 13 0 100 Rawang Tin 0 11 4 UNLISTED STOCKS Sales, on 'Change • 100 Selfridges (Australasia) old. 1 19 11 100 Woolworths (Sydney) ord. (2) 8 12 0 8 12 3 8 12 0 Sale Reported 50 Selfridges (Australasia) old. 2 0 0

WF' LINGTON , Sales on 'Change • r s. d. Commercial Bank of Aust. 0 19 4 AJ.Z. Refrigerating 1 0 3 Dunlop Perdriau 0 19 0 G. J. Coles 5 s 6 (All late Friday) Broken Hill Proprietary 4 1 3 G. J. Coles .. .. (4) 5 10 0 Unofficial List Selfridges (N.Z.) (4s paid) .. 0 5 2 Woolworths, Ltd. 8 10 6 AUCKLAND Sales oii 'Change £ s.. d. Bank of New Zealand .. 2 0 3 N.Z. Insurance .. .. 3 3 1 1 9 Loan and Mercantile 42 0 0 Dominion Breweries 2 4 0 2 4 3 Broken Hill ■ Prop. .. .. 4 1 0 << 4 1 3 Dunlop Perdriau .. 0 19 0 G. J. Coles .. .. 5 10 9 5 12 0 National Electric .. .. 0 14 7J Farmers' Fert. .. 1 0 , 0 Martha .. .. ' 1 0 1 0

New Zealand Sheep— Crossbred wethers and/or maiden ewes: 481b and under 49 to 5SJb 51 5 A 51 51 5k 54 43 57 to 641b 4'i 4;{65 to 721b 42 41 *X'S Ewes— 481b and under 41 41 4-i 49 to 561b 4 4 '2 7 57 to 641b 33 35 . 65 to 721b 31 33 3s New Zealand LambsNorth Island Powns- ■ 7 s 361b and under 8 8 2 37 to 421b n 8 73 43 to 501b 7-i 8 Second quality: Average about _, 301b 71 71 71 North Island — First quality: 7& 72 3fllb and under 37 to 4211T 7:{ 7:J 7? 73 Second quality: 71 Aver, about 311b 71 7i Australian LambsVictorian — First quality: n7 29 to 361b 7 7 "a 37 to 421b 61 . 6 & 61 Argentine Lambs — First, quality: 361b and under 6 a 61 61 37 to 421b 64 61 <3i N.Z. Frozen BeefOx hinds, 145 to 2101b 44 4i 44 Ox fores. 145 to 2101b 3 3 3 Australian Frozen Beef — Ox hinds, 145 to , 2101b 4.1 44 44 Ox crops, weight corresponding 3 34 34 N.Z. Chilled BeefOx hinds, 145 to *? 2101b — — □a Ox fores, 145 to 2101b — — 31 Australian Chilled Beef — Ox hinds. 145 to 2101b 51'' 58 — Ox crops, weight corresponding 32 33 Union of South Africa Chilled BeefOx hinds,. 145 to 2101b — —; 55 Ox fores, 145 to 2101b — — 32 Southern Rhodcsian — Chilled BeefOx hinds, 145 to 2101b 51 5 51 Ox fores, 145 to 2101b 25 X ! 25 3 Argentine Chilled Beef- — Ox hinds, 145 to 2101b 52 6 6 Ox fores, 145 to 2101b 31 31 31 Uruguayan Chilled BeefOx hinds, 145 to 2101b 5J. 51 53 Ox fores, 145 to 2101b 3.1 31 31 Brazilian Chilled BeefOx hinds, 145 to 2101b 52 — — N.Z. Porker PigsFirst quality: . 61 to 801b 74 74 74 81 to 1001b 7 7 7 101 to 1201h 6.1 6 * 63 N.Z. Baconer Pigs— 121 to 1601b 6 6 61 Lamb Market—Tendency of market is steady, with trade good for the time of year. v Mutton Market—Wethers Lightweights firm, heavy-weights s hade easier. Ewes firm, with prices heavyweights slightly better Beef Market—Frozen bee) f market firm, with prices unchanged . Chilled beef shade weaker,, ow supplies. New Zealand Porkei ing to heavier Pigs —Market quiet and unchanged. New Zealand Baconer Pigs—Prices unchanged, with very little business doing.

LONDON, February 12. ( Feb. 11. Feb. 12. Copper— £ s. d. £ s d. Standard, spot 56 15 74 56 4 4J Forward 56 11 104 56 8 n Electrolytic .. 61 5 0 61 0 0 to 62 5 0 62 0 0 Wire bars .. 62 5 0 . 62 0 0 Lead — Spot 27 7 6 26 18 9 Forward 27 7 6 27 1 3 Spelter — Spot 23 17 6 23 15 0 Forward 24 2 6 24 1 3 Tin— " Spot 230 17 6 228 12 6 Forward 231 17 6 229 12 6 SilverFine, per oz. 20id 201-16d Standard, per oz. 21 ll-16d 21 gd Feb. 5. Feb. 12. Pifj Iron— £ s. d. £ s. d. British 4 1 0 4 10 Antimony— British 77 10 0 77 10 0 Foreign 57 0 0 56 10 0 Molybdenite (per unit) 1 18 6 1 18 6 Wolfram (per unit) 1 15 3 1 15 9