FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22336, 25 February 1938, Page 15

FINANCE AND COMMERCE

FOWL WHEAT PRICES INVESTMENT MARKETS FIRMER Fixed prices for fowl wheat for this season have been announced by the Minister for Industries and Commerce, the Hon. D. G. Sullivan. Both buying and selling prices have been fixed, and increments are allowed to compensate merchants for storage chaiges incurred. The price is 4d below the price fixed for milling. The scheme applies to the South Island only, as the Minister explains that the North Island will have to be supplied from overseas.

The investment market throughout the Empire has hardened in a most encouraging fashion, following better conditions on Wall street and the more settled British political atmosphere. Base metals have risen again, and shares in producing companies have risen sharply. Other investments have also responded.

Woolworths have announced a largely increased net profit and dividend, and a bonus issue of one share for five.

COMPANY NEWS WOOLWORTHS, LIMITED BONUS ISSUE ANNOUNCED i. A Icise of £45,376 in net profit to '£217,717, a final dividend of 9 per cent, (making 15 per cent, for the year), and a bonus distribution of one share for five, are announced ’by Woolworths, Ltd., Sydney. The company’s year closed on January 31. The net profit, struck after making taxation provision and sub-’ ject to audit, is £45,376 above the figure of £172,341 a year ago, and compares with £147,550 in the previous period. The dividend on ordinary shares is an increase from 12J per cent, to 15 per cent. In March of last year shareholders were offered new capital, but the shares were offered at a premium and in the proportion of one for 10, against the present bonus issue of one for five. IMPERIAL TOBACCO Imperial Tobacco Company (of Great Britain and Ireland), Ltd., is paying a final ordinary dividend of 7.} per cent., tax free, accompanied by a cash bonus of 10 per cent., tax free. The distribution for the year to October 31 last is thus maintained at 25 per cent., tax free. The payment was raised to 25 per cent, in 1935-36, which compared with 24 per cent, for 1934-35, and 22£ per cent, for 1933-34. The preliminary statement indicates that net profits have risen by £113,886 to the record level of about £10,750,204, The transfer to general reserve is unchanged at £250,000, leaving the carry-forward £257,233 higher at £1,441,000. Profits for the two preceding years are;—l936, £10,636,316; 1935, £10,268,210. The final dividend #nd bonus will be paid on March 1. , MUTUAL LIFE AND CITIZENS The Mutual Life and Citizens’ Aslurance Company, Ltd., advises that new business, completed for 1937 was easily, a record for the company. The figures are; Ordinary branch £8,158.354, industrial branch £4,401,773, a total Cf £12,560,127. MILNE AND CHOYCE , tPBSSS ASSOCIATION TELEGRAM.) I . AUCKLAND. February 24. Milne and Choyce have declared the following interim dividends for the half-year ended January 31: Preference, 6 per cent, per annum; B preference. 7 per cent, per annum;i ordinary shares and debenture stocks, 5 per cent. Per annum, payable on April 9.

ALL SECTIONS IMPROVE LONDON INVESTMENT MARKET REVIVAL EXPECTED IN SPRING (UNITED TRESS ASSOCIATION—COPYRIGHT.) LONDON. February 23. The stock markets failed to hold all the day’s gains owing to a slackening of business. Steels, coals, oils, and rubbers recorded the best rises, and gilt edged and mines were also firm. All sections of the market responded earlier to the removal of election fears. Many operators anticipate that the stage is now set for a spring revival. Quotations: — £ s. d. N.Z. Loan and Merc, (ord.) 27 0 0 N.Z. Loan and Merc, (pf.) 79 0 0

AUSTRALIAN STEEL SHORTAGE

MILLS WELL BEHIND WITH ORDERS Considerable embarrassment has been caused throughout Australia by the great difficulty experienced in obtaining adequate supplies of iron and steel goods, says the Melbourne “Argus.” Manufacturers are working at full pressure in an endeavour to meet all requirements, but deliveries are still considerably behind. ■ i Although the Broken Hill Proprietary Company, Ltd., at its Newcastle shm ’ is wor hing continuously three snifts a day, the company is unable to ? e ?P pace with the volume of orders oemg received. The greatly increased “emand has been caused by the great expansion of the building and engineering trades in Australia in the last Wo years, and not by any exceptional oemands for armament purposes as r n 6l ? the case * n Britain**tain undelivered orders still amount to considerable proportions, it is hoped that the record rate rL ou ]P u t this year will soon enable manufacturers to meet back delivIn Australia deliveries are in fr? 1 ® ca ses up to seven and eight months behind, and the shortage is peing felt particularly in galvanised ir «n goods. ease the situation somewhat, the “™ ls ter for Customs (Ljeutenant-Col-♦ili White) has authorised the impor- ? u .ty I ree of a quantity of galsh? 1 * • iron sheets and black steel ln a desire to prevent unem*P°y.jnent _in the building and metalL a ""ing industries, which have been .jpudicapped for some time by the th** * ge of supplies. It is probable nat further authorisations of this na hire will be sought. j.,„f. cau se of the general - rise of protanrn c ° sts > the Broken Hill Proprienf y ir°, m Pany made a general increase wholesale steel mill prices by from Jr to 20s a ton as from January 4. this increase in prices, quo_nl* j ns for all types of iron and steel Ha a^e ac tnallv lower in AustrawLijn * n an y other country in the Ann* 't Steel plates now cost in jJJftraha £ll a ton; the price. for the fante commodity in London is £l2 a . n r.o.b. The landed price in Austraoa Would be about £22 a ton. thus, even if British manufacturers . * er ® ln . a position to meet orders from nrio a .^ a ’ imports from that source at a], es . ei Jt prices would be prohibited to *iA intents and purposes by reason of - a f r ? at disparity in values. Although 1a m lro 2 and steel are being shipped Zealand, it is stated that such Dlavi s are so small that they are tn=*- R Practically no part in accenCnw! ng the Present shortage in' the '-ommonwealth. BRITISH WAR LOAN (BRITISH OFFICIAL WIRELESS.) HUGBY. February 23. ®lO3 los° an ’ per cent, > I s quoted at

RESERVE RANK STATEMENT

I WEEKLY FIGURES ASSETS AND LIABILITIES (PRESS 48 SOCI AT lOS TBI.EOK4U.) WELLINGTON, February 24. The following is the statement of assets and liabilities of the Reserve Bank of New Zealand as at the close of business on February 21;— Liabilities £ s. d. (1) General Reserve fund .. 1.500,000 0 0 (2) Bank notes .. 13,789.755 0 0 (3> Demand liabilities— . (a) State • • 4,923,468 3 0 (b) Banks • ■ 9,374,267 11 9 (c) Other .. 347,772 3 7 (4) Time deposits .. (5) Liabilities in currencies other than New Zealand currency .. .. (6) Other liabilities .. 194,388 6 2 Total .. 30.129.651 4 6 Assets (7) Reserve—(a) Gold .. 2.801.791 0 0 (b) Sterling exchange . . 16,672,603 14 6 (c) Gold exchange (8) Subsidiary coin .. 217,476 9 8 (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. 6,259,130 15 3 (2) For other pur- „ „ poses .. 1;100,000 0 0 (b) To other public authorities .. (c) Other .. f 11) Investments .. 2,959,994 9 0 (12) Bank buildings , (13) Other assets .. 118,654 16 1 Total 30,129,651 4 6 Proportion of reserve (No, 7 less No. 5) to notes and other demand liabilities, 68.486 per cent. SALE OF RAMS ROMNEYS IN DEMAND AT GREYMOUTH A successful sale of rams held at the Greymcuth Show Grounds recently. Competition in all sections was keen, particularly for Romneys. In the Southdown section, however, although the better-grown sheep sold well, buyers were not prepared to pay the' reserve placed on a few pens of the smaller rams, which were accordingly passed. Particulars of prices realised are as follows: — Account A. W. Adams (Sheffield): 3 one-shear flock Southdown rams, from 8 to 10 guineas each. Account L.' D. Adams (Sheffield): 10 one-shear flock Southdown rams, from 8 to 124 guineas each; 10 oneshear flock Romney rams, at 8 guineas: 2 one-shear flock Romney rams, at 7 guiheas. Account W. J. Jenkins (Sheffield): 3 one-shear flock Southdown rams, from 9 to 10 guineas. Account A. H. Chunn (Greymouth): 4 flock Romney rams, at 3 guineas each. MINING . •idi’S BARRYTOWN The following is the production report of Barrytown Gold Dredging, Ltd., for the last three months:— Hours dredged—January 445, December 381, November 475. Cubic yards treated—January 154,000, December 133,000, November 160,000. Smelted gold vield (ozs) —January 651, December 581, November 818. Grains, per. cub. yard—January 2.0, December 2.1, November 2.4. . Approximate costs —January £2550. December £2200, November £2250. Approximate realisation—January £4850, December £4IOO, November £6077. The dredge closed down from December 25 to January 2, inclusive. MOONLIGHT GOLDFIELDS The Moonlight Goldfields Company, Ltd., advise that the wash-up on February 23 was l'2ooz for 300 hours’ sluicing.

SYDNEY WOOL SALES

WIDER COMPETITION YESTERDAY GOOD SUPPORT FROM YORKSHIRE AND CONTINENT (UNITED PRESS ASSOCIATION —COPYRIGHT.) SYDNEY, February 24. There was wider competition at the wool sales to-day, with excellent support from Yorkshire and the Continent. . Greasy merino made to 221 d. The offerings totalled 10,673 bales, which 9570 were sold at auction. A further 964 bales were sold privately. MORE EXTENDED INQUIRY NEED FOR ATTRACTING BUYERS The more extended inquiry ruling at recent auctions raises stronger hopes that the Australian wool available for the year will be sold by the close of the season, states the latest report of Winchcombe, Carspn, Ltd. In that respect the decrease in the South African clip should assist. At December, the receipts of wool in that country were 70,000 bales below the 1937 total and our Port Elizabeth correspondent in the month mentioned estimated that the African clip would be 20 per cent, less or 168,000 bales. It is difficult to make accurate estimates of production, but it is certain that a heavy reduction in African supplies will be recorded. A limited demand from America has latterly been experienced and vessels leaving for that quarter have carried larger shipments of the sheep’s staple than earlier in the season. Retail stocks of woollen goods in the United States are being gradually reduced and eventually some appreciable revival in mill activity must be seen to replenish depleted shelves. Prospects are not promising for a marked improvement in the demand for wool from the States, but even moderate buying on that account would be a valuable aid in lifting the balance of the clip. The most pressing need in Australia is to facilitate the purchasing of the sheep’s staple by countries whose financial position and lack of reciprocal trade with the Commonwealth prevent them from securing the quantities of wool they would like to obtain. That problam transcends all others in importance. Italy is a case in point. During the earlier selling months of this season she bought in good volume in Australia. exports from July to December to Italian ports totalling 71,913 bales, compared with 45.173 bales in the similar period of 1936, and 6672 bales in During the full 1932-33 and 1933-34 seasons, shipments from the Commonwealth to Italy were more than 200.000 bales each year. The present slackening in the Italian inquiry is largely due to the lack of balancing business with Australia. Artificial fibres are now bring produced •in very large quantities in the country, but that output would not have been developed to the same extent if the purchase of raw material had been more closely balanced by the sale of manufactured goods to Australia and other, raw material-producing countries. Germany is. similarly situated. Discussions and proposals take place in Australia on a variety of Questions connected with the wool and other primary producing industries. But customers for the products. including wool, are the first necessity. That basic essential is often overlooked. Times have changed since the flays when Australia could rest assured year after year that her clio would find consumers anxious and with the means to purchase it. At its precent price wool is less subject to competition of artificial fibres. An English authority states that a few months ago, when merinos and crossbreds were costing manufacturers decidedly higher figures than present rates, a good deal of interest was shown in substitutes as a cheapening element, but on to-day’s basis, apart from trouble experienced in manufacturing, substitutes are less attractive. In that connexion it is interesting to note that the price of cotton, which was very low, has risen slightly. For some time the quotation for cotton in English currency was about 4Jd ner lb compared with 8d last ApriL The latest price is slightly above sd. Improvement in the price of cotton reduces its competitive ability with wool. The outlook is. therefore, not without its gleams of brightness. METALS MARKET

STOCK SALES FAIRLIE The stock sale held on. Tuesday at Fairlie was the largest this season, there being an entry of 12,000 store lambs. There was a large attendance of farmers and buyers, bidding being very free. Prices were:— Fat Lambs—Best 23s to 26s lOd, medium 21s lOd to 22s 7d„ light 19s to 20s 7d. Fat Ewes—Best 17s to 21s 6d, medium 14s to 16s, light 12s to 13s 7d. Ewe Lambs—Best 22s to 255, medium 18s to 21s, inferior 14s to 17s. Wether Lambs—Best 16s to 17s 7d, medium 14s to 15s 7d, small 10s to 13s 4d. PRICE OF SILVER (BRITISH OFFICIAL WIRELESS.) RUGBY, February 23. Spot silver is quoted at 20Jd a fine ounce, and forward at 19 15-16 d. UNITED STATES STEEL Steel ignot production in the United States during 1937 amounted to approximately 49,000,000 tons —the largest total in record with the exception of the years 1928 and 1929, according to the annual review of “Iron Age.” The figure for exports of iron and steel was the largest since 1920. Exports, including those for December, were estimated at 3,500,000 tons,, of which pig-iron constituted the largest item. Exports of iron scrap are estimated at about 4,000,000 tons, approximately double those of 1936. Expenditure on steel mill equipment during 1937 is put at about £45.000,000. Discussing the steel outlook for 1938, “Iron Age” says that underlying conditions are changed psychologically but not fundamentally.

LONDON, February 23. 4 Feb. 22. Feb. 23. Copper— £ s. d. £ s. d Standard, spot 41 8 U 42 4 4£ Forward 41 11 10* 42 6 10* Electrolytic 45 5 0 45 10 0 to 46 0 0 46 10 0 Wire bars 46 0 0 46 10 0 Lead— Spot 15 16 10£ 16 3 1* Forward 15 18 n 16 4 4* Spelter— ' Spot 14 16 10£ 15 8 lh Forward 15 0 U 15 9 4j Tin— Spot 186 17 6 190 7 6 Forward 186 12 6 190 2 6 Silver— Fine, per OZ. 20id 204 d Standard, per oz. 21 11l,6d 21|d .