FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22419, 4 June 1938, Page 12

FINANCE AND COMMERCE

♦ INVESTMENT MARKET STEADIER LAMB IMPROVES ON SMITHFIELD The investment market this week was inactive, but the improvement overseas induced in the last two days a very much better tone. In general there was a'rise in values at the end. In Sydney yesterday turnover returned to normal. The demand for lamb in England has improved, and prices are very firm. Heavy-weights are actually dearer. Wethers are also firm, especially heavy-weights, but ewes are slow and Inclined to weaken. Bradford is very slow and values are lower. Buyers show the greatest reluctance to buy anything but immediate requirements.

SHAKE MARKET REVIEW

SMALL VOLUME OF BUSINESS 9 MARKETS TREND HIGHER AT THE CLOSE (BT OVB COMKXBCUX KDITOa.) The chief event of the week was the announcement of the Bank of New Zealand accounts for the year, but several important companies also made their figures public. The Bank of .New Zealand showed a slight decrease in net profit, for which the reason will in all probability be given in the directors’ report. The decrease was apparently smaller than was expected, because the shares since the announcement have firmed. Two New Zealand industrials to announce lower earnings during the week were Wilson’s Cement and Perpetual Trustees, but neither reduced its dividend, Devonport Ferry showed a small rise in profits, and proposes to pay an unchanged dividend. Important overseas companies to announce profits were Goldsbrough, Mort, which showed smaller earnings and proposes a lower dividend, Gordon and Gotch, which made a smaller net profit for its latest half year, and Morris, Hedstrom, which announced a considerably better net return, and recommends a slightly increased dividend. The overseas situation has, however, improved, and toward the end of the period there was a definite upturn not only here, but in England, America, and Australia. The tin situation also is clearer, though the decision of three major American automobile manufacturers to' close down temporarily will probably have some effect on the metals market. Turnover day by day was:—

Government Government issues were again in consistently good demand, and sellers were still hard to induce to do busi- ' ness. There were two sales of the 4J per cent. 1949 at £lO3 ss, and one sale of the 4 per cent., 1955, at £lO4 7s 6d. Banks were not active. There were several sales of ■ the-TOs Commercial of Australia, which were not dealt with last week at all. The price was well down, falling to 15s 6d, but at the end there was a sale at 15s 9d. New Zealarids had a number of sales, and showed a consistent rise. They finished last week at about £2 3s, but during the present period rose to £2 4s 9d In dealings. Loans were entirely neglected, and the only sales in the meat section were two of New Zealand Refrigorating at 8s sd, a slight increase. New Zealand Breweries were traded steadily throughout the week and showed a continuous decline in value, the loss amounting to about 10d. Apart from a sale of Swan, no other business was done. Miscellaneous Trading in the miscellaneous section was confined almost entirely to industrials. Australian shares in general showed a tendency to rise, though there were exceptions to this trend. British Tobaccos were slightly weaker on balance, though there was a firmer tone at the end. Broken Hill Proprietaries were fairly steadily firmer, and gained lid on the week. G, J. Coles sagged at the start, but picked up later to gain Is, but both the Electrolytic Zincs were- lower over the period, though they, too. showed signs of recovery at the finish. Taranaki Oils consistently improved their position and finished with a gain of Bd. Woolworths (Sydney) were slightly weaker on balance, but the Proprietaries “rights” were about 3d better with sales up to 4s. Mining Mines moved downward most of the week, but finished with a firmer tendency, Lyells and Morgans showing distinct gains on the week. ? j YESTERDAY’S BUSINESS There was a falling off in the volume of business done on the Christchurch Stock Exchange yesterday. Price levels generally were well maintained with the bulk of the dealings in industrials. Apart from vestibule business, the hollowing transactions were recorded:— - LISTED STOCKS Sales on ’Change • ■'

Banking Commercial Bank of Australia recovered to 15s 9d, sellers staying in at that price, buyers at 15s 7d Bank of New Zealand moved up to 44s' 9d, and more were wanted at 44s 7d, sellers at 45s 3d. New Zealand Insurance had business at 58s, and there were further unsupported sellers at 58s 2d. Westport-Stockton Coal, ordinary, remained unaltered at 3s. New Zealand Breweries appeared stronger with dealings at 41s 9d and 425, market closing 41s lOd buyers, 42s 2d sellers. Miscellaneous Booth, Macdonald, preference, were fractionally firmer at 2s. Dunlop Rubber moved up a point- to 20s Bd, and more were wanted at that price, sellers at 20s 9d. Electrolytic Zinc were firm at 36s lid. G. J. Coles rose to 81s 9d, sellers staying in at that price, buyers at 81s 3d. Taranaki Oilfields were fractionally firmer, with sellers and dealings at 8s Hd, buyers at 8s 9d, Woolworths Properties, “rights,” changed hands at 3s lid and 4s, and these were buyers’ and sellers’ closing quotations respectively. Woolworths, Ltd., were firmer on buyers’ offers 20s 10d. Mining Grey River, 10s paid, were weaker with buyers and business at 12s, sellers at 12s 2d. Broken Hill South, cum dividend, recovered to 27s lid and 28s Id, market closing 27s lid buyers, 28s 6d sellers. Mount Lyells advanced to 23s and 23s Id, sellers staying in at the higher price, buyers at 22s 11 d. Rawang Tin moved up to 8s 6d, but closed with sellers at 8s sd, buyers at 8s 3d. AUCKLAND [THE PRESS Special Service^] AUCKLAND. June 8. After a week of uncertainty due to a variety of depressing influences, the investment market on the Auckland Stock Exchange took a turn for the better to-day. An improved feeling followed a strengthening in most metal prices and reports of a better sentiment in th£ New York market in spite of difficulties in Europe. Interest is still largely centred upon the United States and the efforts being made to stimulate business activity there. The general opinion is that no marked improvement can be expected until August or September. The possibility of unfavourable seasonal conditions in Australia restricting banking profits is now added to the nervousness existing concerning new Commonwealth legislation. These fears have been responsible for the poor showing of hanks. All Australian issues were weaker oyer the period. Commercials of Australia declining sharply on light trading. New Zealands and Nationals of New Zealand failed to hold a slight Sain early in the week, but remained steady subsequently. Insurances were more active. New Zealands weakened slightly. South British gave way rather sharply toward the close of the week For breweries buying support was apathetic, the whole week passing without an inquiry for either of the leading New Zealand issues. Weaker levels persisted for Australian industrials throughout the week and it was not until to-day that there was any tendency to a firmer trend. Broken Hill Proprietary remained . fairly steady but other market leaders changed P a pus at weaker levels. New Zealand industrials, on the whole, were steadier. Metal shares fell to their lowest points for nearly two years. Mount Lyells changing hands down to 22s 7d. There was an immediate response to higher quotations for metals qn the London metals exchange, and values were firmer all round at the close. The move in the price of gold to more than £7 an ounce has quickened interest in gold shares, but the market continues, to view Marthas with uncertainty, DUNEDIN [TBS PRBSB Special Service.! DUNEDIN, June 3. There was no real buying strength on the Dunedin Stock Exchange this week. The weakness of overseas markets and low values of metals. caused investors to be pessimistic. There were occasional slight upward movements, but they were not maintained. The number of recorded transactions was about 20 below that for the last week. The uncertain outlook overseas does not Indicate a rapid return to normal trading, and theorists have even expressed the opinion that further downward movements are likely. The attitude of investors towards Dominion industrial shares is something, to substantiate these theories. The General Election is already causing a fair amount of speculation in in vesi men t circles, and a marked slackening of interest among buyers furnishes ample evidence of lack of confidence In New Zealand shares. Since the new loan campaign has been under way in Australia, Commonwealth consolidated securities have turned from their previous irregularity to definite slackness. Frontrank industrials have been erratic, but the trend has been mostly downward. The metal market has had a series of setbacks and values remain low. Prices for copper have had an almost uninterrupted fall, and buyers of Mount Lyells have been more than usually subdued. The brightest feature of the trading was the consistent demand for the rights issue of Woolworths Properties, and altogether 10 parcels were disposed of at from 3s lid to 4s. A slackening of interest was also noticeable in Government loans. Certain issues were wanted at between 2s 6d and 5s lower than last week’s prices, but sellers were not induced to come forward. Business was confined to a sale of 3J per cent, stock, March, 1939-43, at £IOO ss, the same price as was obtained last week. PROPERTY SALES At Duvaucbelle Bay yesterday, Messrs H. Matson and Company, sold the following properties on account of the estate of Mr S, A. Harris, O’Kain’s Bay:—l 4 acres with residence, £66 an acre; 40 acres, £4O 10s an acre; 20 acres, £l7 an acre. The first two properties were bought by P. Harris, and Joe Harris was die buyer •of the 20-acre property

WOOL AND ITS RIVALS

Recent Research Discussed GERMAN PRODUCTION OF ARTIFICIAL STAPLE How the production of artificial staple fibres in Germany had increased rapidly in the last few years, until in 1937 it was equivalent to onefifth of the Australian clip, was described by Professor F. G. Soper, of Otago University, who is director of the Woollen Manufacturers’ Research Association, in an address to the Institute of Chemistry last evening. The purpose of Professor Soper's address was to explain how scientific research was being used by the woollen industry to improve its product. Very spectacular things were occurring in industry, particularly in those in which chemistry played an important part, said Professor Soper. An example was found in such commodities as soap and footwear. The wool industry provided a contrast. Here the great mechanical advances were made 150 years ago, and for some hundreds of years there had been a flourishing English woollen industry, in which genuine advances in processing were made. In comparison with other industries, the wool trade seemed now to be somewhat unprogressive, and not making use of scientific investigation. This superficial impression was because the wool industry was much older than many that were now prominent, A new factor had entered into consideration recently. This was the competition of synthetic fibres. Much had been heard of the expansion of the fibre industry, but it was not generally realised how rapidly it was going ahead. Rapid Growth of Output Almost the whole of the world output of artificial staple fibre came from those indentical countries which were also large wool consumers. The production of these countries in 1937 was nearly twice as great as in 1936. Rapid expansion took place in Germany, Japan, and Italy, each country producing more than 150,000,0001 b in 1937. The output of the next largest producer, the United Kingdom, amounted to only 35,000,0001 b. The growth of production in the last few years had been tremendous, as was shown by the figures (in millions of lb) as follows: 1930. 1935. 1936. 1937. Germany .. 4.3 34.3 90.0 200 Japan .. Italy .... .7 67.7 110.1 154 All countries 7.2 139.7 298.8 592.7 In England at present there was little tendency to replace wool by staple fibre, and there seemed little fear that either the woollen or the worsted trade was seriously affected. But this might be due to a general dislike of change, though the position was very satisfactory from the point of view of wool consumption. It would seem that at present the only use of staple fibre with wool was in certain cheap lines of women’s dress materials, or in small amounts for decorative effect. The position in Germany was very different. One firm, in England, however, was pushing the use of staple fibre, and a mixture with wool, for undergarments, and it was quite possible that its use might increase the use of wool, causing a large number of people to change from cotton or artificial silk underwear to these new very fine wool and staple fibre mixtures. The criticism was often made that the wool industry was not making the use of scientific research that it should. Actually a co-operative research movement had existed in Great Britain ever since the war. Sometimes preliminary scientific work had to be done in catching up on the specialised knowledge of operatives, who acquired it over a lifetime. Lines of 'Wool Research The most noteworthy advances which had resulted from the scientific attack on the problems of the wool industry were:— (1) New knowledge of the molecular structure of the wool fibre, which explains so many of its properties. (2) Anti-shrinkage treatment. (3) Protection against bacterial and moth attack. (4) Improvements in washing, dyeing, and finishing, so that woollen garments now were, much in advance of what they used to be. Professor Soper went on to discuss at length the molecular structure of wool and other fibres, and the chemical effects of the various treatments developed to prevent shrinkage and bacterial and moth attack. Three main methods had been developed to produce an unshrinkable wool material. One vised aqueous chlorine, which if used in sufficient strength to affect the whole of the fibre, destroyed its outer scaly coating and spoiled its “handle.” Another method, using gaseous chlorine, did not have this harmful effect, but the goods, though unshrinkable, tended to swell in an alkaline solution, as in washing, and lost strength. The same effect was produced by what was known as the Hall process. It might be possible by further development of unshrinkable wool to produce cellular underwear, which had hitherto not been possible because a cellular wool fibre always shrank up. The problem of moth-proofing had been satisfactorily solved, and the material so treated was odourless. Larvae placed on such cloth failed to develop. Waterproofing tended to take the form of placing a water-repellent substance on the fibre rather than of blocking the pores of the material. Rubber was being used as a fibre coating, producing a material that was not waterproof,' but showerproof. “Even if. spectacular achievements in processing and machinery are absent, science is being well utilised by the woollen industry,” said Professor Soper in conclusion. “There is every prospect in the future of increases in the wearability and the warmth always associated with wool. I hope I have shown that fundamental chemical research can help so old an industry as the woollen industry.” In thanking Professor Soper, Dr. H. G. Denham referred to the grave threat to the New Zealand woollen industry of the artificial staple, which, he said, emphasised the need for the Woollen Manufacturers’ Research Association, of which Dr. Soper was director. BRADFORD MARKET EASIER LONDON, June 2. The Bradford market is easier, business being very unsatisfactory. Buyers are reluctant to purchase more than is absolutely necessary. Quotations are:—

PRICE OP SILVER (BRITISH OFFICIAL TOBBUEBS.) (Received June S, 5.5 p.mJ RUGBY, June 2. Spot silver is Quoted at 18 15-16 d a *flaa and forward at 16Sd>

This week. Last week. £ £ Saturday .. 2,064 1,995 ‘Monday 2,737 5,262 - Tuesday *. 2,607 3,707 Wednesday 3,334 5,199 Thursday ,. 4,307 4,432 Friday „ 3,494 7,447 Total 18,543 28,042 Dealings In the different sections were:— Shares. Value. No. £ .^Government — 1,296 Debentures • • 309 . Banking 931 1,852 Insurance 100 290 Loan and Agency 100 188 Refrigerating 400 168 Breweries 1,800 3,717 Miscellaneous .. 9,240 8,576 Mining . 4,450 3,136

\ £ *. d. SO Bank of N.Z. (cum div.) 2 4 9 WO N.Z. Breweries (7) ., 2 2 0 JOO Booth, Macdonald (pfj 0 2 0 100 Dunlop Rubber 1 0 8 100 Electro. Zinc. (ord.) 1 16 11 , „ 30 G. J. Coles 4 1 9 MO Taranaki Oilfields 210 Woolworths Properties ; (rights) (3) 0 8 11 0 3 11 . TO Grey River 0 4 0 0 12 0 TO Broken Hill South .. 1 7 11 TOO Mount Lyell (2) 1 S 0 (2) 1 3 1 100 Bawang Tin 0 8 6 Sales Reported TOO Comm. Bank of Aust. 190 N.Z. Breweries 0M 9 2 1 9 S 2 0 406 Weatport-Stockton Coal ■ (2) 0 3 0 425 Taranaki Oilfields (4) 0 8 11 ' 100 M.Z. Insurance ,. 2 18 0 WO Woolworths Properties k — (rights) (3) 0 4 0 k TO Broken Hffl South ... 1 8 1

Last Last year. week. Junes. Merinos-' d. d. d. 70’s 39J 27* 27 64’s 38 26 25| 80’s •* 36* 26 24* Crossbreds— 58’s S3 22 214 56’s *• 81 20 19* 50’s 26 17* 17 46’s *25J *17 •le* 44-3 *17