FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22306, 21 January 1938, Page 13

FINANCE AND COMMERCE

WOOL LOWER AT WANGANUI

PRICE MAINTAINED IN LONDON

Wool prices at Wanganui yesterday were distinctly lower than at recent sales and were a disappointment to growls. The catalogue was of more than 30,000 bales of good quality Prices all round were about a farthing below recent rates, and ordinary crossbred* showed a drop of Jd on Wellington lambs wool for which a good demand usually exists, and came back ConWnt 0 Vr t0 2d - The CWef com Petition came from the SnrfZf' ♦ sermany5 ermany Practically dominating the market. Bradford operated sparingly. Though competition was somewhat slacker in London, the demand was stul active, and values were maintained. ■riqJXn^T 6 B f nk figUrGS f ° r the week show a dcclinc o£ f JJn Z ! ?V, ISSUe - DGmand liabil ities to the State are £180,400 less, but those to the banks are £775 200 higher Other liabilities are £75,600 higher. Sterling exchange held has increased £535,300. Advances outstanding in the primary produce account are less by £22,500.

COMPANY NEWS

CHRISTCHURCH GAS

At a meeting of the board of directors of the Christchurch Gas, Coal, and Coke Company, Ltd., held yesterday afternoon, a dividend of 4 per cent, was recommended to be paid for the six months ended December 31 1937. The dividend is at the same rate as the distribution for the same period in the previous year. Dividend for the full year is 7 per cent. CHRISTCHURCH WORKINGMEN'S BUILDING SOCIETY The twenty-seventh annual" meeting of the Christchurch Working Men's Co-operative Building Society was held last evening, when there was a fair attendance. The reports and balancesheets were adopted. The retiring directors, Messrs F. S. Bonnington, H. J. S. Harrington, H. Holland, and W. H. Chaplin, were reelected unopposed. Mr J. O'H. Tobin was re-elected as shareholders' auditor. It was reported that the No. 4 group was open for allotment of chares. In their annual report on Group 2, the r'-'ectors state: —"Your directors in rrcjenting this, the twenty-seventh annual report for Group 2, very much regret that the expectations of the last report have not been realised. The final winding-up is still delayed by circumstances over which we have no control. We can assure the shareholders that the very earliest available chance •will be taken to declare the final distribution of profits. The profit and loss account shows an increase of £23 5s lid, having a credit of £1203 9s lid." The directors' report on Group 3 States: — "During the year the sum of £2067 16s 8d has been repaid to shareholders, representing capital with, added interest. The economic position is slowly improving, but some shareholders are still feeling the effects. We are looking forward to a more prosperous year for 1938. The balance to credit of profit and loss is now £4OOB 16s 7d. a decrease of £6B 8s lOd, due to £BS 16s 8d interest being paid to shareholders on their capital. This is a very satisfactory position considering the circumstances. During the year No. 4 group was offered to the public; the response so far has not been sufficient to warrant a call being made. The matter is still under considera- . tion." THOS. COOK AND SON (BANKERS) The balance-sheet of Thomas Cook and Son (Bankers), Ltd., which conducts the banking activities of the well-known travel organisation, is invariably characterised by a high degree of liquidity. In the latest statement the current deposit and other liabilities, which are substantially higher at £4,469,910 compared with £4,016,800 a year before, are covered by cash and short term loans to the extent of approximately 83 per cent. ' Of the investments, amounting to £641,026, which appear at full market values, the bulk is represented by British Government securities. Total assets amount to £4.806,387, consisting of cash £509,270, remittances in transit £227,590, at call £250,000, bank deposits £2,688,023, British Indian and Dominion Government securities £595.205. The published reserve at £125,000 is equal to the paid-up capital, and the internal reserves are substantial. The business of Thomas Cook and Son is now approaching its centenary. DUNEDIN SAVINGS BANK (press association telegram.) DUNEDIN, January 20. Figures of the Dunedin Savings Bank's activities for the year show an increase in the number of accounts withdrawn, but this is more than counter-balanced by heavier deposits, which show a rise of £361,003 on 1936 to £2,498,018. The excess of deposits over withdrawals was £157,662, showing almost 100 per cent, advance on the 1936 returns. The average amount at the credit of depositors for 1937 amounted to £77 6s Id, an increase of £1 16s 5d over 1936. The number of new accounts rose by 764 to 7444. The number of accounts open as at December 31 was 66.215 against 64,398 for 1936. The credit balance as at December '3l was £5.118,771, compared with £4,861,015 for the previous year. GRADING OF SOUTHERN POTATOES IRREGULARITIES ALLEGED (PRESS ASSOCIATION TELEGRAM.) MARTON, January 20. A meeting of the Rangitikei Potato Growers' Association resolved to write to the Department of Agriculture in reference to irregular grading of certified seed coming from the South Island and the unsatisfactory state of many sacks osed, the department being urged to tighten up the regulations in an endeavou; to effect an improvement. One merchant said he understood on /. good authority that the Government intended to fix the size of bags for the following season, the Chapman bag being favoured.

RESERVE BANK FIGURES

WEEKLY STATEMENT ASSETS AND LIABILITIES (PRESS ASSOCIATIOH TELEGRAM.) WELLINGTON, January 20. The following is the statement of assets and liabilities of the Reserve Bank of New Zealand as at the close of business on Monday, January 17, 1938: Liabilities £ s. d. (1) General Reserve fund .. .. 1.500.000 0 0 (2) Bank notes .. 14,532,505 10 0 (3) Demand liabilities—(a) State .. 3.040,116 2 1] (b) Banks .. 9,626,810 10 2 (c) Other .. 650,576 17 2 (4) Time deposits .. (5) Liabilities in currencies other than New Zealand currency .. .. (6) Other liabilities .. 191,717 9 10 Total .. 29,541,726 10 1 Assets (7) Reserve—(a) Gold .. 2,801,791 0 0 (b) Sterling exchange . . 16,683,102 6 0 (c) Gold exchange (8) Subsidiary coin 217,882 18 2 (9) Discounts—(a) Commercial and agricultural bills (b) Treasury and local body bills (10) Advances—(a) To the State or State undertakings— (l) Primary Products Marketing Dept. 6,221,143 410 (2) For other purposes . . 900,000 0 0 (b) To other public authorities .. (c) Other .. (11) Investments .. 2.658.325 0 0 (12) Bank buildings (13) Other assets .. 59,482 1 1 Total . . 29,541,726 10 1 Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities: 69.963 per cent. MINING GOLDFIELDS DREDGING (FRESS ASSOCIATION TELEGRAM.) TIMARU, January 20. The Goldfields Dredging Company reports a return of 220z Bdwt for 130 hours' work. MOLYNELX DREDGE (TRESS ASSOCIATION TELEGRAM.) DUNEDIN, January 20. The master of the Molyneux gold dredge, operating near Clyde, reports that for the two weeks ended January 15, the dredge worked for 246 hours and recovered 72 ounces of gold. MOSSY CREEK (rRESS ASSOCIATION TELEGRAM.) GREYMOUTH, January 20. The Mossy Creek return was 240z Bdwt for 7920 yards and 127 hours. BULOLO Mr Fred. G. Dunn, attorney for Clutha Development, Ltd., reports the following Bulolo production for December: — "For December, the total gross production amounted to 16,404 ounces of bullion containing 11,319 ounces of fine gola from 826,400 cubic yards. Estimated working profit, 7125 ounces of fine gold. The above production is equivalent to £99,041, and working profit to £62,343 on the basis of £8 15s (Australian) a fine ounce of gold." METALS MARKET LONDON, January 19. Jan. 18. Jan. 19. Copper— £ s. d. £ s. d. Standard, spot 43 6 3 42 6 10-J Forward .. 43 10 7i 42 11 10£ Electrolytic .. 47 10 0 46 10 0 to .. 48 5 0 47 10 0 Wire bars .. 48 5 0 47 10 0 Lead — Spot .. 16 10 10J 16 1 10J Forward .. 16 18 H 16 10 74 SpelterSpot .. 15 8 9 15 1 lOi Forward .. 15 11 10i 15 5 7hj Tin — Spot .. 185 15 0 184 7 6 Forward .. 186 2 6 185 2 6 Silver — Fine, per oz. 20 l-16d 20gd Standard, per oz. .. 21gd 22d PRICE OF GOLD LONDON, January 19. Gold is quoted at £6 19s 7Jd a fine ounce. BRITISH WAR LOAN (BRITISH OFFICIAL WIRELESS .J RUGBY, January 20. War Loan, 3i per cent., is quoted at j £lO2 lis 3d. i

PKICES MOVE DOWNWARD

Disappointing Sale At Wanganui

LAMBS WOOL DROPS

A PENNY

<i'KSSB ASSOCIATION TELEGRAM.)

WANGANUI, January 20

Prices that must be considered disappointing to growers were realised at the first Wanganui wool sale of the series to-day. The market for the catalogue of more than 30,000 bales showed a decided drop on the previous sales held at Wellington and Nader, and in comparison with the opening sale of the season j n November, prices were about ,!d easier. Growers were prepared for a slight casing in the market to-day, but surprise was caused by the easing in the value of lambs wool, which dropped trotu Id to 2d per lb. Ordinary crossbred was about id down on the Wellington talc, and about id on Napier. Bellies showed a decline of from id to ;, : d per lb. Competition generally was restricted, with France and Germany taking most of the offering. Germany practically dominated the market. Bradford was operating in some sections, but Yorkshire limits were clearly fixed. Japan was completely out of the market.

In most cases, growers were pro pared to meet the market, and about 80 per cent, of the offering was disposed of at auction. The wool was up to the usual standard offered at an opening sale, but was lighter in condition than during an average season. Values were-

d. d Fine Halfbred (58, 56/58, 56) Extra supei* .. .. Super .. .. to 14.1 Average . . . . 12i to 13i Medium Halfbred (50/56, 50) Average .. .. 12 to 13 Inferior . . . . 9J to 10J Extra Fine Crossbred (48/50) Super .. .. 11 to llj Average .. .. to 103 Inferior .. .. to 9£ Fine Crossbred (46/48)

Super . . .. 10i to 11 Average .. .. 9i to IOJ Inferior . . . . 8J to 9\ Medium Crossbred (44/46> Average . . . . 0J to 10.', Inferior . . . . 8.1 to SiCoarse Crossbred (40/44) Average .. .. 9i to 10i Inferior .. .. 8i to 9\ Hoggets- - Fine (48/60) .. 10i to 111 Medium (4C/48) .. 9i to 10i Lambs — Down (50/57) .. Fine (46/50) .. 12 to 14 Seedy and inferior .. 8i to 10 Bellies and Pieces — Crossbred, good super 9 to 10i Crossbred, low to med. 7 to 3 Crutchings— Medium to good .. 7i to 10 Inferior and seedy .. 7i to 33 LONDON AUCTIONS CONTINUED COMPETITION SOMEWHAT SLACKER (UNITED TRESS ASSOCIATION—COPTRIOHT.) LONDON. January 19. At the wool sales 7629 bales were offered, including 1220 from New Zealand, and 6705 were, sold. There was a good selection, and active competition from the Home trade and the Continent, with Russia also buying. Rates were fully, maintained. Competition slackened somewhat, sellers' limits causing rather more withdrawals. Actual turnover, however, was substantial, with firm prices. H. Dawson. Son. and Company, commenting on the outlook, consider that the future depends largely upon outside developments of a general nature. The output of the iron and steel trades is a barometer to watch during the next few months. A reasonable price for wool should ultimately bring a fresh demand and enlarged outlets, and the time, was rapidly approaching when wool would again prove a sound investment. INFLUENCE OP COTTON PRICES INCREASED GERMAN ACTIVITY Wool has receded in value since December, but cotton has improved slightly, being quoted at 4.97 d in English currency, states the latest report of Winchcombe, Carsons, Ltd. The price of the latter, however, is still low compared with its top point of nearly 8d last March, and whilst it remains on that basis the cheapness of cotton must make it a more than usual competitor with the sheep's staple as a textile raw material. The world's cotton crop is expected to be greater than its normal consumptive capacity, but its low cost will probably result in a larger use of it, and the reduced returns for growers this year will tend to curtail the quantity I sown. The development, however, is not an immediate prospect. We, therefore, have various influences hindering the wool market, including the uncertainty attaching to Japanese buying and the absence of American demand. , It is certainly regrettable that Japan did not operate with more freedom at the opening Sydney sales of the half year. A firm market would have been reassuring for consumers of wool, tops, and yarns. Recently the price of 64's merino tops in Bradford receded 10 per cent, in sympathy with the wool market, being quoted at 28£ d per lb, compared with 31d in December. At the former figure the quotation is l£d per lb above the lowest level of November last. Germany has shown good activity this season, and has also been a large buyer in South Africa. Stocks of wool in that country reached a very low point. Imports of the sheep's staple have been curtailed considerably of late years. The quantity of imported wool returned during the first nine months of 1937 was only 204,000,0001b. The total for the similar period of 1935 was 287,000,0001b. A decrease of 30 per cent, has been experienced. Substitute fibres have been produced in larger quantities, and more extended use has been made of recovered rags; but gradually the need for wool has been depleting the supplies available. Stocks of tops reached an extremely low level, and replenishment of wool holdings has evidently become essential for the conduct of the mill industry. German exports of fabrics increased during 1937 the quantity of woollen fabrics exported from January to September snowing an increase of 22 per cent, on the figures a year before. A great proportion of the wool grown in Germany is short with a length of only 4 J to 7J months' growth. It is produced on sheep bred chiefly for mutton production. The Government is now offering a premium of 30 per cent, on fixed prices for wool of nine months' growth and over in 'an effort to encourage stockowners to produce longer wool. The wool market needs the fillip of more sustained Japanese buying, and an increase in the American demand.