FINANCE AND COMMERCE

Press, Volume LXXIII, Issue 22136, 5 July 1937, Page 11

FINANCE AND COMMERCE

STOCK EXCHANGES

INVESTMENT MARKET CHECK

STRONG WOOL DEMAND EXPECTED

The commercial week-end cable summary from London notes a slackening of the recently-restored confidence in the investment market, due to the Spanish situation, although nothing catastrophic is anticipated. The London wool sales are expected to open strongly as a result of increased French and other Continental competition. The dairy produce market has eased a little further. The Smithfield market report records second quality lamb and ewes as easier, due to heavier arrivals, but wether mutton is firm. A report that the South African gold output was to be limited caused a temporary scare, but authoritative statements contradicted the rumour.

INVESTMENT MARKET

SHORT-LIVED CONFIDENCE

EFFECT OF SPANISH SITUATION

jVSITKD **X3S KSSOClja'tOSl —OOI'YIIIGUT.i (Received July ■*■ 6-30 p.m.) LONDON, July 3. The confidence with which the markets opened was short lived, owing to the Spanish situation. Few city businessmen expect catastrophic developments but naturally there is no inclination to open new commitments. Nevertheless any brightening in the political outlook will probably lead to a sharp advance in the markets, the undertone of which has been gradually strengthening.

Strong: Wool Demand Predicted

The outlook for the wool sales is bright. If Russia and Germany decide to take even moderate weights of greasy combing wool the market should be lifted well above Bradford prices for tops. It is anticipated that fiance's competition may be keener than usual. As anticipated, butter has drifted lower and there is a definite lack of inquiry. Tooley Street merchants do not expect any appreciable recovery for the time being, and business should be quiet but uninteresting. Apples were readily cleared during the last week at improved prices.

Meat Board Publicity The New Zealand Meat Producers' Board carried out an intensive campaign during the last two months over Northumberland, Durham, and Yorkshire. The local trade keenly co-ope-rated. Extensive advertising has also ! helped to make the public "New Zea- ' land lamb conscious." Numerous competitions and displays were held, including prizes for children colouring miniature New Zealand posters. The board entertained 4000 enthusiastic youngsters at a showing of New Zealand films at Newcastle, where prizes were presented.

THE AMERICAN DEFICIT

A HUGE SUM

WASHINGTON, July 2. Budgetary statistics for the financial Tear show that the Roosevelt Administration deficit for four fiscal years of its existence totals 13.468,000,000 dollars.

~2S?. public debt has increased by U8f11,000,000 dollars.

LIMITING GOLD OUTPUT

A "PREPOSTEROUS" PROPOSAL

(Received July 4, 7 p.m.) _ ' . LONDON. July 3. enrZLJ B 2° m i a * Post ' s " Johannesburg S" e 1 ? P u ond^F lt sa y s that the reply of wL ?! mon to a Question in the Su ««! p°"l m .°ns Promising to inriau? ♦„ *!* }? mon had mad e a proPOMUo sterilise the quantity of gold 525\ a - but later «5SmL UP ?P Mr Hofmeyer's statement Sita«nn9? Ver , , i ment considered a S*i°» of go d output preposterous, 3 rt would not alter the world «Xt f^ h j M ei " A h o is the SrtTk ~r^" ble - A "umber of exSe g f g golng back to the Sold s «nage as a way out of the impasse.

LONDON PRODUCE MARKETS

WEEK-END QUOTATIONS

*"**> PBIBS 48S0CUT1OM—COPTBIOKT.) IfcM.,.. , LONDON, July 3. rMi? yS -s; losin e P ric <?s were:— MidJ ton —Spot; per lb; August. "Sfi^SSii 1 * 1 per lb > Plantation c£? u ! i T Jul y- £2 ° 17 s 6d a ton. 17s *wT7 Uly_Au S ust . South Sea £l4 tion iLi ,' sm °ked £l4 15s, plantat.„ baul - £ls 15s. - fed Oil-£32 5s a ton. ; «S& 37spercwt -

SHEEPSKIN SALE

UNCHANGED PRICES kJh Christchurch Woolbrokers' As«ISV that at last week's W*J?! e ?? k " ,s a fa ir sized cataf»lrly wf„ bn 3 ltted - Competition was *Mr wifk *u nd P ric es were about on ?*? feffii hose of the Previous sale. &sbred Wmg was the ran Se of values: *£&«« d - d - d - d - 'WSLS "i 10 uSTo^ O9I to 15 < to «1 2 * 10 t0 H wool 001 U to 151 12 to 13 001 •• 10 i 8 K*&*os°° l 1° 13J 12 to 122 l&fh " 12 10 t0 10i garter". 15 l 0 isi U >^ q S r t 0 8 ]4l1d. t0 " S 2d:

SMITHFIELD MARKET

FIRM WETHER DEMAND

METALS MARKET

SECOND QUALITY LAMB EASIER

TYxe 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 aie 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 also shown):— July June June 2. 25. 18. Per lb. d. d. d.

COPPER AND SPELTER EASIER

LONDON, July 2. July 1. July 2.

Our removal sale enables you to obtain Racquets, Bats. Hockey Sticks. Golf Clubs, etc.. at Bargain Prices. See our windows. THE CANTERBURY SPORTS DEPOT. 258 High street. —2

QUIET MARKETS

Metal Stocks

Unlisted Stock

AUCKLAND

Saies on 'Change

Unlisted Stock

WELLINGTON

Sales on 'Change

Unlisted Stocks

DUNEDIN

Sales on 'Change

ItllilSH OfrICJAL WIE.ILEJ3.)

PRICE OF GOLD

TREASURY BONDS

SATURDAY'S BUSINESS

Markets were quiet on call on Saturday morning and recorded dealings were restricted to a few stocks. Those stocks affected by the price of base metals showed a hardening. Transactions, exclusive of vestibule business, were:—

LISTED STOCKS Sales on 'Change £ s. d.

UNLISTED STOCK Sale on 'Change 50 Woolworths (Syd.). ord .. 6 19 3 Bank Shares Commercial Bank of Australia had business at 18s 7d, buyers staying in at that price, sellers at 18s Bd. E„ S.. and A. Bank had dealings at £6, and more were wanted at that price, sellers at £6 2s Gd. Bank of New Zealand were easier with sellers at 44s lid.

Southland Frozen Meat changed hands at 85s, and further buyers at 82s 6d failed to attract sellers. New Zealand Breweries were firm at 52s (3d, market closing 52s buyers, 52s lid sellers. Staples Brewery appeared easier with buyers and business at 50s 9d.

Broken Hill Proprietary advanced to 80s lOd and 81s 3d, market closing 80s lOd buyers, 81s Id sellers. Electrolytic Zinc, preference, rose to 57s 9d and 57s Bd. and more were offered at the lower price, buyers at 57s 6d. G. J. Coles changed hands at £5 4s and £5 3s 9d, and these were sellers' and buyers' closing quotations respectively. Hume Pipe (Australia) were fractionally firmer at 19s 3d. Macduffs. preference, remained unaltered at 25s 6d. Buyers of New Zealand Paper Mills raised their bids to 27,s Id without attracting sellers. Broken Hill South advanced to 495, and more were wanted at 48s lOd, sellers at 49s 3d. Mount Lyells moved up to 42s 3d, closing quotations Id on either side. North Broken Hill rose to 73s sd, and there were further unsupported sellers at 745. Rawang Tin were firm with buyers and business at 12s Id.

Wool worths, Ltd., relapsed to £6 19s 3d, and there were further buyers at that price, sellers at £6 19s 9d.

FOREIGN EXCHANGES

RUGBY, July 2.

LONDON, July 2. The price of gold is quoted at £7 0s od a fine ounce.

LONDON, July 2. The total amount applied for in tenders for £45,000.000 sterling Treasury bills was £72,360,000. The average rate per cent, for bills at three months is lis 0.58 d against lis 5.41 d a week ago.

COMPANY NEWS

E. REECE, LIMITED

GOOD INCREASE IN NET PROFIT

An excellent increase in net profit from £1927 to £3147 is shown in the accounts of E. Reece. Ltd., for the year ended May 31, 1937. Dividend on the preference shares has been raised from 3 per cent, to 4 per cent.

The report states: — "The vear has seen many changes in trading conditions, with shorter hours and rising prices in the world s markets; this has given the directors an anxious time. Considering these conditions, we feel sure the shareholders will be well satisfied with the year's results. The present outlook in Europe is uncertain, and we, in common with our competitors, may be faced with difficulty in obtaining regular supplies; for this reason your directors have given every consideration to the company's resources by a conservative valuation of stock, ample provision for bad debts, and adequate reserves. . "The balance-sheet now submitted to vou shows a net profit of £3140 18id. together with the sum of £517 1/F carried forward from last year, making a total of £3864 15s Id, which your directors recommend should be dealt with as follows: "(1) By payment of a dividend of 4 per cent, on preference shares, absorbing £9BO. "(2) By placing to reserve account £I2OO.

"(3) By writing off as a provision for bad debts £3OO. "(4) Reserve for income tax £sßd. "(5) By carrying forward a balance of £599 15s Id.

"The directors retiring are Messrs H. L. Bowker arid A. G. Jamiesun. who are eligible and offer themselves--for re-election. The auditors. Messrs Stewart. Eeckett. and Company, also offer themselves for reappointment."

Liabilities Change from li>"7. \asVveav. Capital . . 26.107 Debenture:-- .. 42.100 Creditor,- .. 2.292 --1.04.-i Provi.-ion for interest.* etc. H-.il 69 Reserve Wo <"WO Profit and lost- 3.605 -J.113 75.723 r-449 Assets Freehold property (less reserve and depreciation .. 33,374 98 Plant, etc. .. .. 2,269 -53 Shares in subs, companies . . .. 2.000 Trade account due by subs, companies . . 19<I -•■ 10 Stocks .. .. 25.424 r 3.664 Debtors .. 7.881 -429 Cash .. .. 4.17 C -2.639 Share investment .. 200 Suspense account .. 212 —ll Total .. 75,725 +449 1935. 1936. 1937. Gross profit . . 16,800 13,000 17,842 Net prolit .. 1.233 1.927 3,147 Div. (pref.) (amount) 612 733 930

BRITISH WHEAT MARKET

LONDON, July 3. The Liverpool futures market is firm. July delivery is quoted at 9s 7d a cental and December at 9s 6d.

MINING

MATAKI JUNCTION

GILLESPIE'S BEACH

TALISMAN DUBBO

MAORI GULLY

MOSSY CREEK

WOUKSOP

ARGO

WHITE'S ELECTRIC

IPttISS A33OCIATIOX TELEGHAM.) WELLINGTON, July 3. The Malaki Junction return lor the week ended July 1 was 330z 7dwt 2gr for 122 hours and 25,000 yards dredged.

NEMONA GOLD DREDGING

A dividend (No. 4) of Id a share (free of income tax> has been declared on all the shares in the Nemona Gold Dredging Company, and will be payable on July 12. This dividend represents a distribution of £ISOO to the shareholders, which makes a total of £6OOO paid in dividends since operations commenced in June, 1936.

Transfer books will be closed from July 7 to July 12, inclusive. The return last week was 40oz for 90 hours and 11.300 yards treated.

The Gillespie's Beach return is 71oz 40oz for 136 hours.

Talisman Dubbo reports that 44 tons of ore have been treated at the Golden Dawn battery for an approximate realisation of £321.

The Maori Gully dredge return is 41oz for 136 hours.

Mossv Creek on Friday washed up for a return of 220z 19d\vt from 9504 yards of material, treated in 135 hours.

The Worksop dredge last week secured a return of 28oz.

Owing to breaking a pivot shaft, the Argo dredge was idle last Saturday and there was no wash-up last week. Dredging will be resumed to-day.

The company's engineer reports that the work of reconstruction of the tables is proceeding satisfactorily and anticipates that the dredge will recommence operations about July 20.

GOLDEN POINT COMPANY

Operations are to be recommenced at the Golden Point gold and scheelite mine at Macraes Flat, near Palmerston South. A staff is at present restoring the small stamper mill, and crushing operations will be recommenced this month. In a circular issued to shareholders, it is stated that the directors of New Zealand Mining Investments, which company has exercised an option over the property as a result of development work it has carried out, are providing the cost of re-establish-ing the mill, and shareholders are being Invited to subscribe sufficient funds to carry on further development work and to provide a proper gold recovery plant, the lack of which was largely responsible for the mine closing down some years ago. Work since then has disclosed the presence of an additional reef carrying gold values of from 12 to 16dwt to 4he ton, and a rib of highgrade scheelite. The circular further states that since operations were previously carried on gold has increased 50 per cent, in value and scheelite 500 per cent., the latter now being worth about £3OO a ton.

AUSTRALIAN BUDGETS

QUEENSLAN D IMPROVEMENT

SYDNEY, July 3. Queensland receipts for the year totalled £16,535.037. Expenditure was £16,815.228. making a deficit of £280,191. This is the lowest deficit the State has had for eight years. West Australian revenue for the year ended June 30 was £10.187,254, and expenditure £10,556,638. The deficit is £369,384, compared with a surplus of £88,378 in the previous year.

New Zealand Sheep— Crossbred wetlrers and/or maiden ewes: .481b and under 54 54 H 49 to 561b 54 54 54 57 to 641b 5 5 5 65 to 721b 4? 4J 42 Ewes— 481b and under 44 41 42 49 to 561b 31 3? 32 57 to 641b 34 32 H 65 to 721b 32 34 34 New Zealand Lambs— Canterbury: 361b and under 7i 7J 7V 37 to 421b 63 7 7 43 to 501b 6? 6? 62 Second quality: Average about 311b 7s 7.1 71 Other South Island— 361b and under 74 74 7.', 37 to 421b 7 7 7 43 to 501b 6? 62 62 North Island Downs- - 361b and under 71 73 71 37 to 42Tb 7 7 7 43 to 501b 63 62 62 Second quality: Average about 301b ■71 7» 7jj North Island— First quality: 361b and under ~'i 73 73 37 to 421b 6i Gl 61 Second quality: Average about 311b 7 7» 7J Australian Lambs — Victorian — First quality: 29 to 361b 6? 62 6J 37 to 421b 6i 64 6i Argentine Lambs — First quality: 361b and under 6* 64 6g 37 to 421b 6 6 6i N.Z. Chilled BeefOx hinds, 145 to 2101b 51 41 5\ Ox fores, 145 to 2101b ,• 3 * 3« 33 Australian Chilled Beel Ox hinds, 145 to 2101b 44 44 5 Ox crops, weights <. corresponding 34 34 33 Union of South Africa Chilled BeefOx hinds, 145 to 2101b 54 54 54 Ox fores, 145 to 2101b 33 3j 34 Southern Rhodesian Chilled BeefOx hinds, 145 to 2101b 4i 44 42 Ox fores, 145 to" 2101b 31 3 33 Argentine Chilled BeefOx hinds, 145 to 2101b 61 64 64 Ox fores, 145 to 2101b 4 4 44 Uruguayan Chilled Beel ' — Ox hinds, 145 to 2101b 51 5| 5i Ox fores, 145 to 2101b 3J 32 32 Brazilian Chilled BeefOx hinds, 145 to 2101b 4J 42 51 N.Z. Porker PigsFirst quality: 61 to 801b 64 6i 61 81 to 1001b 6* 6'r 68 101 to 1201b 62 63 63 N.Z. Baconer Pigs— 121 to 1601b 64 6.1 61 Lamb Market—Second quality- easier owing to lover prices Patagonia n and Australian. Other descriptions steady. Mutton Market—Wethers firm. ; Ewes easier owing to larger supplies Beef Market—Frozen Beei None available. Chilled Beef: Prices a little better this week. New Zealand Porker Pigs —Easier, owing to seasonal decline in consumption. New Zealand Baconer Pigs--Firmer, owing to better prices bacon.

Copper— £ s. d. £ s. d. Standard, spot 55 18 9 55 7 6 Forward 55 13 9 55 3 n Electrolytic .. 62 0 0 62 0 0 to 64 0 0 64 0 0 Wire bars .. 64 0 0 64 0 0 Lead — Spot 23 11 10A 23 15 7} Forward 23 8 1A 23 13 U Spelter— Spot 21 19 4i21 15 7 A Forward 22 2 10i 21 18 1A TinSpot 255 17 6 258 2 6 Forward 255 7 6 257 7 6 SilverFine, per oz. 19 5-16d 19Id Standard, per oz. 21A.d 21 7-16d June 25. ' July 2. £ s. d. £ s. d. Antimony— British 83 0 0 83 0 0 Foreign 58 0 0 57 10 0 Pig iron 5 0 1 5 0 1 A unit. Molybdenite .. 2 0 6 2 0 6 Wolfram 3 3 6 3 3 6

100 E., S., and A. Bank (4) 6 0 0 100 N.Z. Breweries 2 12 6 100 Staples Brewerv 2 10 9 50 Broken Hill Propty. 4 0 1U 300 Electro. Zinc r'prefJ <2> 2 17 9 (4) 2 17 8 75 G. J. Coles 5 4 0 (2) 5 3 9 50 Broken Hill South .. 2 9 0 100 Mount L,vell <2) 2 2 3 50 North Broken Hill . . 3 13 5 Sale* Reported 100 Comm. Bank of Aust. 0 13 7 110 Southland Frozen Meat . <2> 4 5 0 50 Broken Hill Propty. 4 1 3 100 Macduffs <pref.) 1 5 6 100 Rawang Tin 0 12 I 100 Hume Pipe 0 19 3

£. s. d. Stock, 1946-49, 4 i per cent. 104 0 0 Natl. Bank of A'asia. (£5 pd.) 7 6 6 N.Z. Breweries 2 13 0 Aust. Glass 4 12 6 Electrolytic Zinc (pref.) 2 17 101 G. J. Coles 5 3 6 Wilson's Cement 10 4 Waihi Invest. 0 11 9 Emperor 0 15 7 Mount Morgan 0 12 6

Woolworths (Sydney) 6 19 6

£ s. d. 4 per cent. Stock, 1946 103 17 6 Staples and Co. 2 11 0 N.Z. Breweries (2) 2 12 6 Broken Hill Prop. (3) 4 0 9 Burns. Philp 3 14 0 W. H. Soul Pattlnson 4 6 10 Macduffs fpref.) 1 5 6 Taranaki Oil 0 4 4 (All above late Friday.) Silverton Tram 1 16 6 Burns Philp 3 13 9 Mount Lyell 2 2 4

Woolworths, Ltd. N.Z. Perpetual Forests (Both late Friday.) 7 0 0 .. 2 2 0

Bank of New Zealand 2 5 0 Wilson's Cement (late Friday) 10 4 Rawang Tin (late Friday) 0 12 0

Par. July 1. July 2. Paris, fr. to £1 124.21 128 29-32 1283 New York, dol. to £1 4.866 4.943 4.94 5-16 Montreal. dol. to £1 4.866 4.952 4.95A Brussels, belgas to £1 33 29.37 29.362 Geneva, ir. to £1 25.2215 21.61i 21.64 Amsterdam, fl. to £1 12.107 8.99J 8.99* Milan, lire to £1 92.45 94 1-16 91 31-32 Berlin, reichmarken to £1 20.43 12.33 12.32 Copenhagen, kr. to £1 18.159 22.40 22.40 Stockholm, kr. to £1 18.159 19.39J 19.39 J Oslo, kr. to £1 18.159 19.90 19.90 Vienna, schgs. to £1 34.535 2GJ 261 Prague, kr. to £1 164.25 141 15-16 UV a Helsingfors, marks to £ 1 192.23 226i 2261 Madrid, pesetas to £1 25.2215 — — Lisbon, escudos to £1 no 110 3-16 110 3-16 Athena, drach to £1 375 547J 547J Bucharest, lei to £1 843.5 670 670 Belgrade. dinars 276.3 216 216 Rio de Janeiro, pence to milreis. 4.899 4i 44 Buenos Aires, pence to dol. 51 — _ Montevideo, pence to dol. • 392 39J Bombay, pence to rupee 18 184 181 Shanghai, pence to yen • 143 143 Hong Kong, pence to yen * 14 11-16 Yokohama, pence to yen * 13 31-32 13 31-32 Bstavia guilder^' 12.107 8.96 Warsaw, par zlotys to £1 43.36 — •Determined by price of silver.