FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22335, 24 February 1938, Page 11

FINANCE AND COMMERCE

METALS MARKET FIRMER HEAVY STORE SHEEP OFFERINGS The metals market in London has firmed again, all classes showing good rises. This strength has had a strong effect on the market for shares in producing companies and on the Australian and New Zealand exchanges yesterday, business in metals shares was brisk at rising prices. On the local exchange business generally was more active, but the demand for metals was insistent at rising prices. Not V' many sellers were in the market. The largest yarding of store sheep for this season was entered at Addington yesterday when about 14,000 breeding ewes and 11,000 store lambs wers forward. Ewes were generally about Is easier than they were last week. Lambs eased to a similar extent except for tho more forward sorts. Fat sheep and fat cattle were in over-supply, and both were easier, sheep by about Is a head and cattle by 10s to 15s, except for the best. The strongest demand was that for fat lambs, which sold at prices above schedule rates.

STOCK MARKETS RECOVER GENERAL IMPROVEMENT IN LONDON , BUSINESS still restrained (UNITED PRESS ASSOCIATION—COPYRIGHT.) LONDON, February 23. The city editor of “The Times” says that the overnight debate in the House of Commons, combined with second thoughts, has effaced Monday’s fears of the shakiness of the Government, and has also indicated that there is a prospect of an improvement in the European situation. The stock markets have resumed Friday’s recovery, and restored Monday’s losses with an added few pence over. The markets closed at the highest point of the day, although there was no great increase in business. The improvement extended to gilt-edged, industrial, international, and commodity shares. Firmness on Wall Street has prevented the Cabinet crisis from seriously affecting markets, but the nervousness and perplexity which have caused gilt-edged to waver indicate another uninspiring account. City opinion is sharply divided, but all dread a general election, for which reason the majority of city people are probably prepared to stand by the Premier, right or wrong. Quotations: — £ s. d. Bank of Australasia .. 8 0 0 E., S., and A. Bank .. 4 6 0 Union Bank of Australia ; . 6 11 3 Bank of New South Wales 24 15 0 National Bank of New Zealand .. 2 0 6 Bank of New Zealand .. 112 9 British Tobacco .. 118 1J i Goldsbrough, Mort .. 1 3 l| E Dalgetys ~ .. 6 8 9 k" P. and O. deferred .. 116 f New Zealand Loan and Mercantile (4 per cent, debentures) 93 10 0 New Zealand Loan and > Mercantile (ord.) .. 25 0 0

THE CHAPMAN WHEAT SACK FARMERS’ UNION TO CONDUCT TESTS i To determine whether, in its opinion, the Chapman sack should become current in the Dominion, the North . Canterbury branch of the New Zealand | Farmers’ Union', at its monthly meeting yesterday, decided to conduct tests of the sack with various grades of wheat. 9 The South Canterbury provincial executive wrote stating that it had been alleged that the Chapman sack would hold three bushels of wheat and 1501 bof potatoes. Tests which were conducted in South Canterbury, however, showed that the Chapman sack would not hold 1801 b of New j Zealand wheat, although the assurance had been given by the Standards Inj stitute that it would hold 1801 b to 2001 b of Australian wheat. The Chapman sack is an Australian wheat sack, 41 inches by 23 inches, end weighs 2ilb, Members of the 1 executive said that farmers generally |Were in favour o£ it. HIGH PRICES FOR BEEF AUCKLAND BUTCHERS CONCERNED (PRESS ASSOCIATION IEUSQEAM.) I ' AUCKLAND, February 23. Auckland butchers are concerned at the extraordinary prices they have had to pay for beef at the Westfield stock sale. To-day for the second week in succession prime ox made up to 42s Per 1001 b, the highest realised at this time of the year in memory. The present scarcity of fat cattle appears to be due to the activity of exporters, who have been buying cattle tor the chilling tradeMETALS MARKET

PRICE OP GOLD „ , LONDON, February 22. is quoted at £6 19s 9£d a fine price of silver (aarriSH omoui. wrar.Liss,} . z RUGBY, February 22. Spot silver is quoted at 20id a fine • u °ce, and forward at 19gd.

COMPANY NEWS

CAPEL COURT TRUST (PRESS ASSOCIATION TELIOBAJI.) WELLINGTON, February 23. Directors of the Capel Court Investment Trust, Ltd., Melbourne, recommend a dividend of 2£ per cent, on the old shares and a pro rata distribution on the new shares. PRODUCERS AND GENERAL The directors of the Producers and General Finance Corporation, Ltd., have decided to make no interim distribution on ordinary capital for the half-year ended December 31. The usual preference dividend will be paid. In a circular to shareholders, the directors state that the result of the half-year’s trading was satisfactory. However, while the company (apart from bank overdraft) has no liabilities other than ordinary current monthly trade settlements, they consider that funds available should be applied in the meantime to meet the growing demands of the company’s business. Any distribution is, therefore, better deferred until the end of the financial year. , “The business of the company is being well maintained, turnover is increasing materially, and under existing -conditions and the policy now being pursued by the board, shareholders may look forward to increasing profits. Substantial savings in overhead now in operation will further contribute materially,” the circular states. “Your directors are pursuing a policy of getting in, with all possible speed, that portion of the capital of the company not employed to give the greatest return and diverting it to a much more remunerative field. Efforts are being made to accelerate these collections, with the object of ensuring that by tho end of the present year a very large proportion of these funds, at present earning a comparatively low rate, will be permanently diverted to a field of our operations where a very much higher return is being obtained. This will provide additional revenue which alone will represent a substantial return to shareholders.” Both subsidiary companies, the directors add, showed a good profit for the half-year.

CARLTON BREWERY Disregarding £6580 of undivided profits of its subsidiary, Carlton Brewery. Ltd., shows a profit of £128.950 lor the year ended December 31, compared with £104,600 the previous year and £85,430 in 1935. With its subsidiary, the Victoria Brewery Proprietary. Ltd., the company holds a 32 per cent interest in the operating company, Carlton and United Breweries. Ltd. The dividend for the year is 15 per cent., absorbing £122,550, against 12 per cent, in 1936, and 10 per cent, in 1935. TRADE IMPROVEMENT LAST YEAR “ALMOST TEDIOUS RECORD OF EXCELLENCE” The “Economist,” in its usual New Year's survey, points out that 1937 sented a record of improvement almost tedious in its excellence. However, most of the components of the journal’s own inde# of business activity finished, the year below their best fig* ures. Discussing the view that the present recovery is already past its peak, the “Economist” points out that the normal length for a recovery period in a business cycle is four years. There is only one previous case on record —that oi 1893 to 1899— when.recovery measured by the unemployment figures lasted for more than five years. The present recovery was five years old in September, 1937. In another respect, the rate of growth in average production from cycle to cycle, the present recovery is ahead of former ones. Yet, In spite of these strongly presumptive evidences, there are several differences between the present position and the usual appearance of a boom shortly before its collapse. The most important of these is the continuance of cheap money and the assurance given by the absence of a rigid gold standard that money will remain sheap. Second, there is an absence of speculative excitement. This is particularly important: if there is no bubble, there is nothing to burst. The “Economist” suggests, however, that in the absence of some fresh stimulus the cumulative forces of industrial fluctuation may continue to work downward. It finds no stimulus in the consumption trades, and none In the capital goods industries. It suggests that the outlook for the export trade is encouraging, and that there may be a further increase in these If commodity prices are maintained. But the chief possibility of a favourable development lies in the United States. Among several possible guesses about the course of American industry in 1938 the majority view is that the movement of recovery, which never reached a mature phase, will be resumed some time this year. If so, there will be an immediate favourable reaction on the commodity markets and on the general psychology of international business. BRITISH EXCHEQUER REVENUE (British orficiAt, wireless*) RUGBY. February 22.. Total ordinary revenue to date Is £736,147,145. against £765,396,728 a year ago. Ordinary expenditure is £758,164,000, against £719,923,270. BRITISH WAR LOAN (sumsa omciAi, wireless.) RUGBY, February 22. War Loan, 3i per cent, is quoted at £lO3 8s 9d,

SYDNEY WOOL SALES

BEST FLEECE NOW EASIER DECLINE OF 5 PER CENT. (UNITED PBES3 ASSOCIATION —COPTBKJHT.) (Received February 23, 7.15 p.m.) SYDNEY, February 23. At the wool sales 8193 bales wei offered, and 6920 sold, 1230 privatel; The easier tendency recently n ported has now extended to the be: fleece wools, which showed a declin of 5 per cent. Competition was fairl general. Greasy merino realised to 20d. THIRD CHRISTCHURCH SALE The order of sale for the thir Christchurch wool sale to be held o Thursday next, March 3, is as follow: Dalgety and Company, Ltd. H. Matson and Company. National Mortgage and Agency Coir pany. Ltd. New Zealand Farmers’ Co-operativ Association, Ltd. Pyne, Gould, Guinness, Ltd.. New Zealand Loan and Mercantil Agency Company, Ltd. FOREIGN EXCHANGES (BRITISH OPTICIAU WIRELISS.I HUGBY, February 22.

BANK OF NEW SOUTH WALES The Bank of New South Wales quoted the following exchange rates ruling yesterday : N.Z. on Buying Selling London—

ASSOCIATED BANKS’ DOLLAR RATES The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates yesterday on a New Zealand currency basis. They are subject to alteration without notice:— U.S.A. Canada. Dol. Dol. (Per £1 N.Z.) Selling— .... 1K TT . .. 4.021 4.02 I*l6 0,0, .. .. 4.0211-16 4.02 J Buying— * T.T. •• -• 4.058 4.00 i O.D. .. .. 4.06 i 4.06 J DAIRY PRODUCE LONDON BUTTER MARKET FIRM LONDON, February 22, Butter is firm. Choicest salted New Zealand and Australian are quoted at 116 s; unsalted Australian at 118 s.

LONDON. February 22. Copper— Feb. 21. Feb. 22. £ s. d. £ s. d Standard, spot 40 5 0 41 8 14 forward 40 9 4£ 41 11 104 ■electrolytic .. 44 0 0 45 5 0 to 45 0 0 46 0 0 Wire bars Lead— 45 0 0 46 0 0 Spot 15 10 0 15 16 104 ; Forward 15 11 104 15 18 li Spot 14 11 104 14 16 104 .Forward Tin14 15 7i 15 0 n Spot 185 7 5 186 17 0 Silver •• 185 2 6 188 12 6 Pine, per Standard, OZ. per 20 l-10d 20id oz. .. 21|d 21 ll-16d

Paris, fr. to £1 Par. 124.21 Feb. 21. 152 43-64 Feb. 21 153 11-3 New York. dol. to £1 4.866 5 014 5.011 Montreal, dol. to £1 4.866 5.014 5.014 Brussels, belgas to £1 33 29.514 29.954 Geneva. fr. to £1 25.2215 21.594 21.58J Amsterdam, fl. to £1 12.107 8.892 8.962 Milan, lire to £1 92.43 < 95 5-16 95g Berlin, reichmarken to £1 20.43 12.40i 12.40J Copenhagen, kr. to £1 18.159 22.40 22.40 Stockholm, kr. to £1 18.159 19.41 19.41 Oslo, kr. to £1 18.159 19.90 •19.90 Vienna, schgs.' to £1 34.585 264 264 Prague. kr. to £1 164.25 1424 1422 Helsingfors, marks to £1 193.23 2264 2264 Madrid, pesetas to £1 25.2215 Lisbon, escudos to £1 375 110 3-16 110 3-lt Athens, drach to £1 375 547J 5474 Bucharest, lei to £1 813.60 6774 6774 Belgrade, dinars 376.3 216 216 Rio de Janeiro, pence to mllreis 5.90 2 13-16 2 13-16 Buenos Aires, pence to dol. 51 Montevideo, pence to peso « 214 214 Bombay, pence to rupee 18 184 184 Shanghai, pence to dol. * 14 3-16 14 3-16 Hong Kong, pence to yen . 15 15 Yokohama, pence to yen 24.58 14 14 Batavia, guilders 12.107 8.944 8.944 Warsaw, par zlotys to £1 43.36 _ •Determined by price of silver

£N.Z. to £100 stg. T.T. 124 124/10/O.D, 123/10/124/8/9 Australia — £ A. to £ 100 N.Z. T.T 101 100/10/O.D 101 100/10/Fiji— 90/7/6 £F. to £100 N.Z, T.T. 89 O.D 90/7/6 89 New York— Dol. to £1 N.Z. T.T. 4.0562 4.0215 O.D. 4.0662 5.0255 Montreal— Dol. to £1 N.Z. T.T. 4.0531 4.0207 O.D. 4.0651 4.0247 Austria— 21.00 Schgs. to £1 N.Z. T.T. — O.D. — 21.01 Belgium— Belgas to £1 N.Z. T.T. 23.051 23.641 O.D. 24.026 23.032 Czechoslovakia — Korunas to £1 N.Z. T.T. — 113,60 O.D. — 113.71 Denmark — 17.893 Kroner to £1 N.Z. T.T. 16.203 O.D. 18.263 17.899 Finland— Marks to £1 N.Z. T.T. 184.95 179.15 O.D. 185.35 179.25 France— Francs to £1 N.Z. T.T. 124.09 122.19 O.D. — 122.23 Germany— Relchmarks 9.898 to £1 N.Z. T.T. — 9 O.D. — 0.901 Greece— Drachmae to £1 N.Z, T.T, — 420.54 O.D, — 429.84 Holland— . 7.157 Florins to £1 N.Z. T.T. 7.307 O.D. 7.347 7.101 Italy— 76.44 Lire to £1 N.Z. T.T. O.D. — 76.49 Java — 7.129 Florins to £1 N.Z. T.T. 7.279 O.D. 7.319 7.133 Norway— T.T. 10.182 15.892 Kroner to £1 N.Z. O.D. 16.242 15.898 Noumea— 120.94 Francs to £1 N.Z. T.T. 125.94 O.D. — 120.98 Papeete— 125.79 120.99 Francs to £1 N.Z. T.T. O.D. — 121,03 Sweden — 15.796 15,501 Kronor to £1 N.Z. T.T. O.D. IS.856 15.507 Switzerland — 17.525 17.255 Francs to £1 N.Z. T.T. O.D. 17.630 17.200 Cheefoo — T.T, 104 N.Z. pence to dol. — O.D. 18 7-84 Hong Kong— T.T. 18 29-64 18 33-64 N.Z. pence to dol. O.D. 18 27-64 18 53-64 India and Ceylon— T.T, 22? 22 21-32 N.Z. pence to rup. O.D. 22 11-32 22 21-32 Japan— N.Z. pence to yen T.T. O.D. - 17 31-64 17 31-64 Manila— N.Z. pence to peso T.T. 29 17-64 29 49-64 O.D. 29 11-04 29 49-64 Shanghai— T.T. O.D. 18 9-64 18 9-64 N.Z. pence to dol. Singapore— 34 43-64 35 5-32 N.Z. pence to dol T.T. O.D. 34 37-64 35 5-32