FINANCE AND COMMERCE

Press, Volume LXXIII, Issue 22197, 14 September 1937, Page 11

FINANCE AND COMMERCE

INVESTMENT MARKET QUIET LARGER LAMB EXPORT The Christchurch Stock Exchange opened the week quietly yesterday with b.usiness restricted, and with most activity in industrials. Several stocks were cheaper than on Saturday. Figures for 11 months of the export year show that killings of larnb for export have increased over the similar period last year by 394,541 carcases. There has been a decided increase in chilled beef, and frozen beef has also shown a rise Wethers are lower, but ewes show an advance

COMPANY NEWS CANTERBURY FARMERS' CO-OP. FURTHER SUBSTANTIAL IMPROVEMENT A further substantial Improvement fc the finances of the Canterbury Farmers' Co-operative Association, Ltd., is shown in the accounts for the year ended July 31. Gross profit is £16,250 higher at £129,884. and net profit at [£22.297 shows an improvement of (=£5183. Dividends are maintained at 5 per cent, on both preference and Ordinary shares. £15,000 will be sent to various reserves, and £3736 carried •forward. The company, in common tvithmany ethers financing and dea'ing with farming products, had a hard struggle during the slump. In 1931 a Joss of £97.081 was made, and losses >:in the two following years accumulated a deficit of £113,680. Since then the company has made gratifying progress as the farmers of South Canterbury have been enabled to return to profitable farming. In their report the directors state:— "Depreciation or. buildings, fixtures, and plant has been provided as usual, amounting to £6698. The position in finance as compared with last year is

A decrease in responsibility of 26,863 The association has made further Steady progress and the result of the year's operations discloses a net profit of £22,296 13s 6d, to which has to be added balance carried forward from last year £3945 15s lid, making a total of £26,242 9s sd. The directors have declared a 5 per cent, dividend on all classes of preference shares amounting to £4696 7s 6d, which leaves an amount of £21,546 Is lid, from which the directors recommend the payment of a dividend on ordinary paid-up capital at the rate of 5 per cent, £2779 16s lOd, transfer for reserve for income tax £9029 15s 2d, transfer to general reserve £SOOO. transfer to reserve for superannuation £IOOO, a total of £17,809 12s, leaving a balance to be carried forward of £3736 9s lid. The retiring directors this year ■were:—Stockholder directors: Messrs F. R. Flatman and J. M. C. McLeod; shareholder directors, Messrs A. Austin and T. B. Garrick, who were eligible for re-election and have been nominated accordingly. There being no fresh nominations, all the above were automatically elected directors for the ensuing term of office. Messrs A. C. Martin and J. Leggott, retiring auditors, have again offered their services. Main Items of the balance-sheet are:

S.I.M.U. INSURANCE The South Island Motor Union Mutual Insurance Association received Premium income of £44,752 in the year ended June 30. 1937. compared with *38,320 in the previous period. Loss ratio rose from 58.7 per cent, to 61.73

per cent.; and expenses ratio from 24.1 per cent, to 24.3 per cent. Total funds of the association now stand at £124,049. Of this amount £25,117 has been placed to reserve for unexpired risks. £6262 has been set aside as reserve for fluctuation of investments and contingencies, £3537 for payment of rebate bonus, and after provisioni for all other liabilities, there renains a balance of £71,164 to be placed to general reserve, compared with £67,117 a year ago.

JAPANESE WOOL PURCHASES

SCHEME FOR AVOIDING COMPETITION LARGE SYNDICATE TO BUY AT AUCTIONS (Received September 14, 12.30 a.m.) TOKYO, September 13. The newspaper "Asahi" reports that under the new law to control trade and industry which is operative until a year after the end of the conflict in China, Mr Yoshino, Minister for Commerce, is arranging a special syndicate comprised of the business houses of Kanemitsu. Mitsui, Mitsubishi, Okura, and lida, to co-ordinate in the purchase of all Japan's wool requirements. A correspondent of the newspaper adds that evidently the concentration foreshadows the cessation of competition among Japanese at wool auctions. A leading economic magazine, "The Diamond," states that the Government's new wool policy is lending optimism to the industry in Manchukuo. where it is planned to reach 15,000,000 sheep in 35 years to supply a third of Japan's requirements. In Japan also, sheep are increasing rapidly, though there were only 61,000 in 1936. Meanwhile, it is expected that the Government will cut its wool imports by half, insist on a mixture of 25 per cent, of staple fibre and raise the consumption tax on all wool fabrics.

AUSTRALIAN TRADE WITH JAPAN POSSIBLE REVISION OF AGREEMENT MELBOURNE, September 13. - A revision of the trade agreement between Australia and Japan, with a possible reduction of the amount of Japanese imports into Australia, will probably be considered by the Federal Ministry this week, in view of Japan s failure to enter the wool market so far this season. To-honour her agreement Japan must buy from Australia 500,000 bales before the end of June next year. DENIAL BY FEDERAL MINISTER September 14, 12.45 a : m.) CANBERRA, September The Minister for Commerce (Dr. Earle Page) declared to-day that there was no foundation for the suggestion that the Commonwealth Government may revise the trade agreement with Japan because that country is not at present operating at the local wool sales.

FOREIGN EXCHANGES (BRITISH OFFICIAL WIBKLKSH.)

as follows:— 1936. 1937. Cr. £ £ £ Uebenturt'j 219,384 241,623 Current acts. in credit 40,395 65,432 Bank and cash in hand 29.067 — 7,753 London account 3,615 — 3,704 322,461 307,055 11,457 11,457 295,598 295,598

LIABILITIES Change July 31. from 1937. last year. £ * Capital paid Up 149,524 + 9 Sales in advance 5 + 5 Secured debs., plus accrued interest 241.623 —7,761 Creditors 24,844 + 3,577 Current accounts 65,432 + 25,082 Staff superannuation fund 2.532 + 620 Bad debts res. 209 — Income tax res. 245 —1,256 Bank overdraft — —29.007 London office — —3,615 General res. 10.000 + 5,000 Profit and loss 26,243 + 9,072 Total 520,637 + 1,618 ASSETS Freehold property 129.640 _965 leasehold property .. 7,436 —196 Furniture, plant, flx- „ tures, etc. 43.626 + 3,692 Investments 5,020 + 2 Advances and auction accounts 108,122 —36,490 Due on open accounts 57,551 + 2,655 Bills receivable 9,306 + 3,366 Goods on hand 148,180 + 17,171 Bank and cash 11,458 + 11.458 Payments in advance 2,318 + 893 Total 520,657 + 1,618 .£ _ July. 1935 £ 1936. £ 1937. Grow profit .. 104,381 113,634 129.884 Net profit .. 14,532 17,114 Dividend— 22,297 Pref. per cent. 5 5 5 Ord., per cent. 5 5 D

Year ended June 30. 1936. £ 38,320 1337. Premium Income 44,752 Losses 22,528 27,628 Loss ratio (per cent.) .. 58.70 61.73 Expense ratio (per cent.) 24.10 24.30 SurplusReserved for rebate .. 4.386 3,537 To general reserve 4.037 4,047 Liabilities— Deposits on account premiums 75 73 Reserve unexpired risks 21,528 25,117 Investments fluctuation reserve 5,869 0.262 General reserve 67,117 71.164 Rebate bonus reserve 5.059 3.537 Ur.paid claims, taxes, etc. 12,432 17,890 Assets - Investments (plus accrued ' interest) 10l.44!> llO.Rfifi Furniture, etc. 372 3!)l Sundry debtors 2.592 5,ti44 Deposits, cash. etc. G.666 7,148

RUGBY, September 11. Par. Sept. 10. Sept. 11. Paris, fr. to £1 124.21 139 1-16 139 57-64 New York, dol. to £1 4.866 4.942 4.94 9-16 Montreal, dol. to £1 4.866 4.948 4.94 9-16 Brussels, belgas to £1 35 29.38 29.36i Geneva, fr. to £1 2S.2Z15 21.534 21.53 Amsterdam, fl. to £1 12.107 8.994 8.994 Milan, lire to £1 82.43 94 94 Berlin, reichmarken to £1 20.43 12.324 12.32i Copenhagen, kr. to £1 18.159 22.40 22.40 Stockholm, kr. to £ 1 18.159 19.394 19.394 Oslo, kr. to £1 18.159 19.90 19.90 Vienna, schgs. to £1 34.585 26} 261 Prague, kr. rvu * to £1 164.25 1412 141g Helslngfors, marks to £ 1 193.23 226 i 226 i Madrid, pesetas to £1 25.2215 Lisbon, escudos to £1 110 110 3-16 110 3-16 Athens, drach to £1 375 547 i 5474 Bucharest, lei to £1 813.80 670 670 Belgrade, dinars 276.3 216 216 Rio de Janeiro, pence to miJreis 5.90 4.5 4i Buenos Aires. pence to dol. 51 Montevideo, pence to peso • 39 13-16 39 13-16 Bombay, pence to rupee 18 184 184 Shanghai, pence to yen * 14g 14g Hong Kong, pence to yen * 1 15 15 Yokohama, pence to yen 24.58 14 14 Batavia, guilders 12.107 —' Warsaw, par 7.1otys to £ 1 43.38 ♦Determined by price oi silver.