FINANCE AND COMMERCE

Press, Volume LXXIII, Issue 22167, 10 August 1937, Page 11

FINANCE AND COMMERCE

' /\sf 11 ) BRITISH INVESTORS ACTIVE V, HIGHER TIN PRICE PREDICTED ,-v v- ; ‘; v British investors are at present very active in spite of the - holiday interruption and all classes of securities are being sought with increasing eagerness, according to the Weekly , commercial summary cabled from London. South African |*v, shares have risen markedly. ne u a^S * mar^: ** s * ron 8* and some authorities predict that if the buying pressure is maintained at its present strength . 'tin will reach £3OO a ton. Stocks of*most metals appear to be v .- 5 ('remaining steady, in spite of the large increase in output. - t|- The Christchurch Stock Exchange saw moderate business , (yesterday, with industrials in %e lead. Several metal producers , rose in price. s The Exchange will be closed to-day and on Thursday afternoon. . ( i. < , . • ■ . ■' ■/',

COMPANY NEWS TIMARU GAS , If ’if, —• . -tta directors of the Timaru Gas, . Cod, and Coke Company have de- . tlafM An interim dividend of 2| per •ceai for the half-year ended June 30, ■Kg* on August 12. u-’t • ; DONAGHY’S ROPE (mas Assocunox maoux.) %£. DUNEDIN. August 9. - At an extraordinary general meetfoff of the shareholders of Donaghy’s Jlqp* and Twine Company, to-day, reK&fions were passed increasing the leapttaT from £47,000 to £7&;000, ■utborising the issue , of 11,750 shares eKk of £1 fully paid in the proporElof Of one share for each, four held 'bylihjffeholders on the register, on ■ JuW Sl, and* writing up the'company’s filand ud buildingsby £11,750, Frac- ; fibdl equalling 60 lull shares are being i jtfS.cn the open market, and the net > : pfceiMds will be distributed to the entitled to the fractional ' ' ' 4 MELBOURNE STEAM ' K Subject to’ audit, the directors of the*SWbourne Steamship Company, V fctd|have decided to pay, afctbe anmeeting on August 18, v dividends year ended June 30,-of 3 per on preference shares, making 8 faSgecnt. for the year, and of 34 per eenton ordinary shares, making 64 for the year; In the pterion* iyesr, interim and final ordinary divi--ffiifc were both of 3 per cent, making unchanged total of 6 per vent, for US* year. The seamen’s was Bttinly responsible for a' decrease in Unfits in that year from £33,730 to £29,240. ■■ , . Australian national I DEBT FUND RECEIPTS m , _ —~ jfv INFLUENCE ON MARKET p|C - ' ■ v . v j . - . - ■ TfContributions to the national debt sinking fund for 1936-87 amounted to ;£5717,000. of which £3,580,000 was on iccount of the States. •ffyor 1937-33, the,, total receipts are, estimated at £10,210,000,.. of which those of the Commonwealth fund will be £4,630,000 and those‘of the States’ hind will be-£5,880,000. These figures «e based’ on the amount of debt abcT fthe law' governing ■ the contributions respectively of the Btatesand the Com<uon wealth. in thej£B,sßo.opo raewob Aurfhe receipt*- of iho Staw sinking funds.lor 1936-37 is an amount of 1£1,450,000, being the contribution of the Commonwealth towards, ;,tte sinking fund on. State debts under Financial Agreement. - . I. • 1 * ’‘-I,;:’ ' ;■■■■ ...vv. ! ■. ■ ■ nMaffabrsecelata i jThe recelpts of the individual States’ ttioktax fund* ue . as - 'follow*:—-New Wales, £2.267.000; Victoria, £1,008,000; Queensland, £812,000; Nath Australis,/ £651,000; Western kl58,000: total, £5,580,000. , , ESShe National Debt Commission, at Sli/inSetlng in Sydney recently, allo|cated the funds available for the year £WJ7-38 between < the London, .New iYork, and Australian markets. |£vß-;la timely to remark,” declares a sjratadent Isued by the commission, |shat the funds in the control of the [commission do not accumulate, aldpugh the cumulative effect; la ohpifoed by the various Governments tMjdng to the fund .amounts similar to Satoie'.which the.lUnd would receive if reinvestments did actually accumu-

; TIMBER TRADE IN N.S.W. ' n "> ' " . SUPPLY AFFECTED BY AMERICAN STRIKES MISSION BUSINESSMAN (XHE PRESS Special Service.] AUCKLAND. August 9. . Although the volume of trade in. the Sydney building industry is but 70 per cent, of the figures reached |n 1930, it has remained stable at that point for the last 12 months, and from a general standpoint is sound. This analysis was made by Mr R. T. Vanderfield, one of the principal men in the industry in New South Wales, who is a through passenger by the Aorangi for Vancouver and the Pacific Coast. On the‘other hand, he said, those in the trade were slightly perturbed at the rising prices, v In the last few months the timber trade had been affected by,tho;continued striked on the Pacific seaboard, whence Australia bought 50 per cent of her sdltwoods from Canada in terms of the reciprocal trade treaty between the two countries. The erratic supplies had brought a hardening in quotations. Mr Vanderfleld is to visit the Pacific Coast to find out the prospects Of a regular supply of softwoods, and probably to leant the extent to which the timber trade of that country will be affected by the industrial dislocation of .the last few months. He is hopeful that the soundness of the industry in his country will be maintained. “Conditions are better than they have been ■for years,” he added, “and alter thei depression years the change is appreciated. From the way things are going in Australia at the presept time, it would seem as though this change for the better will last for some time yet.”

HONEY SUBSTITUTES USED LEGISLATION PROPOSED IN BRITAIN * BEEKEEPERS’ qpMPLAINT (xfnrfD pszss association—comraiGirr.) , . LONDON, August 8. . Legislation :ie. proposed to-prevent the deceptive use of honey. Substitutes ate 'at present actually .exceeding sales of- thd genuine produce in Britain. ' Labellftf “Prepared Honey/’ these are largely glucose, sold in sixpenny jars/ not containing one half-penny-worth of puro. honey. Dominion Governments are supporting.the claims of the British. ■ Beekeepers’ Association for legal ’ protection for the word .honey. / FOREIGN, EXCHANGES

; . •; fljjie receipts are used for redempwn‘: bf leans, on maturity* repurchase Securities on the market, and pi fcurities tendered in payment of Comiwpwealth estate duty. Securities .are ancelled immediately they; come into of the commission. , , large sums expended by the ■demission provide • for the. redempthe public debt over a certain ?Wiod of * years. Incidentally,- they a steadying influence on the asjesof Government stocks, and thus a regular 'market for securnet". . P'-’ ENTRANT IE PLACED FIRST mp /'. ... FOR MERINO mt'!' wool ‘ ; wfcK ■ '■ ' ■■■■ - K' ' ' ... . • PRESS Special Service.] - BLENHEIM, August 9. $»-Special distinction has been gamed farmer, Mr J. w. Wk#e A “The Shades," in securing top HjMgia ;the 1936 merino wool comtphon; conducted by he Canterbury and Pastoral Association. competition, each <ttmpetitor three merino hoggets, Which are SR .and grazed by the association, ®d the wool is shorn at the approjaWetime. scoured, and., valued. ' entry cut 19l» wool, which gave a total weight of 'lb I2oz of fleece 5? and 31b of pie;es. maklng ln all S*. ;12oz, The cut waa valued .at impound for the fleece and S4d yfenad for the pieces making a , tot* l ■^pieces. place in the competition fflgfwken by .the Blackburn Estate, ®P«'heggets shore 191b 3oz of wool,, SShSP; total value was £I-19s 3d. ffili!p!oJove’s other two' entries took fflgfed ; eighth places. , Another ffltWreugh competitor was Mr W. bHagfelSfr Benopai, whose entries were HHttttb, twelfth; and thirteenth,*

dollar market rates

■Mip , Associated Banks (other than the oA?tf South Wales) quoted the following dollar rates yesterday, on a New Zealand currency basis. They, are subject to alteration without Canada. J ’(Per £1 N.Z.) . * » Dol. ‘ Dol., BelUnfe- ~ . 4 OQi 4:00 i ox>. •' " 4001 4 00i ; Buying,— , ~ 4 03} 4.03 9-18 A V!:>4jSl 4.04 is-jb

PRICE OP , SILVER -■

(BHXTXSH orricun wuoaess.) ■ ' RUGBY, August 7. ' Silver is quoted at.2od a fine ounce for spot and forward. -

SHARE MARKETS RISING London Exchange Active i LAMB PRICES HIGHER (xnrmrD press association—coptbioht.) LONDON. August 8. Stock markets, contrary to expectations, ate rising with the temperature, and a steadily increasing number of investors is seeking to join in what appears to be the beginning of anautumn tull movement. Kaffirs have risen 'substantially in the last fortnight. some as much as 50 per cent. The rubber market is active, and leading issues rose substantially. Oils are also better. An excellent tone prevails in heavy industrials, notably in Vickers. Base Metals Rise Commodities also have participated in the revival, especially base metals. Tin has been the most active. The “Financial News’* considers that if consumers rush in the market price may rise to £3OO. The “Investors’ Chronicle" emphasises the fact that. In spite of expanding output of all base metals, stocks are not increasing, and the situation contains the germ of another boom; but if consumers continue to purchase from hand to mouth, this may be averted, as there is no danger of an actual metal shortage. The butter market is featureless, though firm., Little business is passing, and consequently prices are nominal. Lower offers are occasionally being accepted, but some traders anticipate the .market/ to turn even, stronger. Cheese is very quiet, and quotations are also nominal. Sham Rise for Lambs . There has been a sharp rise in the last week or two in medium-weight lambs. Supplies are limited and well held, and prices are likely to remain firm, as no supplies of Australian are available and none likely to arrive before October. Mutton continues weak. Beef is firm. _ . Aggregate New Zealand and Australian arrivals of apples totalled 4.548.000 boxes, compared with 5.131.000 last year. The figures for pears are 804,000, compared with 697.000

BRITAIN AND JAPAN

ECONOMIC MISSION IN LONDON SEARCH FOB CLOSER TRADE RELATIONS CFBOtf ora OW* • COaBISPOXDEKX.) , LONDON, July 14. Trade relation's between Great Britain and Japan are at present being discussed in London with a Japanese Economic Mission. Closer commercial contacts are'hoped fox as a result. “The world is big enough for both of us,” said the Japanese leader, Mr Chokyuro Kadons, when he and his associates were entertained by the Association of British Chambers of Commerce and the London Chamber of Commerce. “There must be some way of adjusting this competitive trade. We do not wish to sell too cheaply or too low. We do not .want to throw away profit, please be assured of that 1 do hope that some understanding can be obtained by personal contacts. It is our hope that our mission, by coming to England and meeting such leaders Of the business world as are gathered here, will carry a stage further the work of your economic mission to Japan in 1934 in promoting Anglo-Jap-anese co-operation in the sphere of industry and business. >• “We must face facts. The numerous difficult problems arising from the rapid increase in population forced Japan to enter the field of industry and commerce" arou nd the turn of the century, and it 1 was perhaps inevitable that this orientation should tend to create friction between the economic interests of our two countries. But this does not justify the pessimistic view that the common dependence of England and Japan upon foreign trade must necessarily give rise to destructive competition. Friendly competition. governed by the rules of reason and fair play, is often the very stimulus needed for wholesome growth arid development.”

“Development of East Asia”

Lord Barr.by, leader of the British Mission to Japan in 1934, said: “In the next decade the development of East Asia should be the hope of world trade! The history of the past decade shows that the expansion of commercial- prosperity in the old industrial countries followed from the development of the large and less modernised communities. In' the vast territories and populations of East Asia, if our mission really be to raise the standard of living, the field for financial Investment and commercial supply is ample for all the leading trading countries of the world. Surely cooperation should suppress mistrust “I would suggest that our two great nations, whose development and history have followed such parallel lines, have a like responsibility towards the prosperity and wellbeing, not only of their own citizens, but also of the world at large We must, of course, leave to our statesmen the major part of the task,of strengthening the ties between our two countries, but I believe you will agree with me that as the industrial - and commercial leaders of our two countries we can play a not insignificant part in removing misunderstandings and reinforcing our good relationships, to our mutual benefit and to the greater security and prosperity of the world as a whole.” Sir Frederick Leith-Ross said: “We in this country have ever the desire to establish good trading relations with Japan. I hope that the mission, when it returns to Japan, will be able to make this clear, because when I was in Japan I found that the United Kingdom was frequently criticised as creating or inspiring difficulties for Japan.' 1 really do not think that such criticisms- are .borne out by the facts. “We, like Japan, are an island Power,' dependent upon exports for the support of our population, and while we have had to defend our economy bj? the adoption of moderate tariffs, we have done, less than almost any country in the way -of - imposing restrictions on imports. The trade exchanges of the United Kingdom with Japan give Japan a very favourable Our 1 colonies similarly offer a very important market for Japanese manufacturers, and their resources are open to development by Japanese companies. .main difficulty relates to textiles. In regard to. these the effects of unregulated competition have been so severe that we have had to resort to the quota system. But we did so only "after efforts to arrive at an understanding bad proved fruitless.

(ssmn ommii wtaencss.) RUGBY. August 7. Pat.' Aiig. a. Aug. 7, Paris, fr, to £1 124.21 132 59-64 132 59-64 New York, del. to £t 4-866 4.88 5-16 4.98 11-10 Montreal. 4.98 5-18 4,988 dol. to £1 4.886 - • t 29.613 betas’ to £1 as 28.60 Geneva, 21.681 21.70| fr. to £1 23.2215 Amsterdam, 12.107 9.03J 0.041 a. to £1 Milan; lire ■ 04 11-18 9411-16 to £1 02.43 , Berlin relch12.381 1 2391 . marken to £1 30.43 Copenhagen, 18.159 22.40 22.40 kr. to £1 Stockholm, t . kr. to £1 18.189 19,391 19.391 Oslo. kr. 'to £ 1 18.159 19.90 19.90 Vienna, scbgs. / 24.S85 26J 261 to £1 Prague, i . kr. to £1 164£5 1422 143 Helsingfors. marks to £1 192.23 2261 2261 Madrid, pese- . > 1 tas to £1 25 £215 ““ Lisbon, escudos to £1 110 1103-16 110 3-16 Athens, drach 5471 5471 to £1 375 Bucharest,. 343.5 670 .670 lei to £ I Belgrade, dinars 276.3 216 216 Rio de Janeiro. pence to tnllreis 4.899 41 41 Buenos Aires.. 51 pence to dol. *"■* .■ Montevideo, •• pence to dol. ' * 392 392 Bombay; pence to rupee 18. 181 181 Shanghai, pence to yen « 141 14| Bong Kong, • pence to yen « . 14 29-32 1429-32 Yokohama, , 13. 14 pence to yen • ■* Batavia, guilders 121107 9.01 9.011, Warsaw, par zlotys to £1 43.36 ,T“% -,. r ,. , •Determined by price of sliver.