FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22430, 17 June 1938, Page 13

FINANCE AND COMMERCE

HEAVY GOLD PURCHASES STERLING EXCH ANGE DECLINES Rumours from the Continent that a reduction of the gold content of the dollar is contemplated have stimulated extremely heavy buying of gold on the London market in the last few days. Turnover on the bullion market on Tuesday was the highest for more than a year. The story is discredited in responsible quarters. The sterling exchange holding of the Reserve Bank has decreased by £858,100, according to this week’s figures. Advances from the Primary Products Marketing Department account are £306,700 higher, and coin shows a slight rise. Investments are a little lower, but other assets are £142,600 higher. The note issue has contracted by £ 127,900. Demand liabilities to the State are larger by £207,900, and to others by £82,500. Those to the banks are £859,800 lower.

BRITISH OVERSEAS TRADE

DECLINE THIS YEAfe FALL OF £10,000,000 IN FIVE \ MONTHS’ EXPORTS (beitisb omm wireless.) RUGBY, June 15. Exports of. United Kingdom goods in May were valued at compared with £37,266,307 in April, and .£42,732,641 in May, 1937. The value of imports for those same periods was £75,393,773, £73,679,570, and £83,173,412 respectively. Reexports amounted to ■ £7,177,179, against £5,010,521 a month before, and £7,392,694 a year ago. For the first, five' months of the year, exports show a -decrease of £10,551,450 over the corresponding period last year, and amounted to £196,306,293. Imports are £1,817,373 less than a year ago at £393,427,311, and re-exports, at £27,932,617, show a fall of £5,478,342. Of five decrease of nearly £8,000,000 in the value of imports in May, compared with May, 1937, more than £5,000,000 is in raw materials, and notably raw cotton and wool. Cotton and woollen manufactures are" also the principal exports showing a decline in value, against which there was a considerable increase in the value of machinery exported.

BIG PURCHASES OF GOLD RUMOUR OF DOLLAR DEVALUATION BULLION MARKET’S LARGE TURNOVER LONDON, June 15. Gold to the value of £5,000,000 has oeen bought in • the last few days as a result of a widespread rumour emanating from the Continent that President Roosevelt intends further to devalue the dollar. Yesterday’s turnover on the London bullion market was the highest for more than a year. Responsible city men refuse to credit the stories of the - devaluation of the dollar. BOARD OF TRADE RETURNS FIGURES FOR LAST MONTH LONDON, June *ls. Board of Trade returns for May show imports at £75,393,000, exports at £38,164,000, and re-exports at £7,177,000. The principal increases were: Imports—Dairy produce £1,144,000, fresh fruits £794,000. Exports—Coal £524,000, machinery £900,000. Re-exports Non-ferrous metals £421,000. The main decreases were: Imports—Grain and flour, £766,000; cotton, raw and waste, £2,274,000; wool, raw and waste, £1,039,000; hides and skins, £910,000; non-ferrous metals, £912,000; oils and fats, £711,000. Exports—Wool, raw and waste, . £381,000; iron and steel, £448,000; cotton, yarns and manufactures, £1,927,000; woollens, yarns and manufactures, £ 936,000. Re-exports Hides and skins, £393,000. WEEKLY SKIN SALE VALUES MAINTAINED The Christchurch Woolbrokers’ Association reports having held its weekly skin sale yesterday. Medium-sized catalogues were presented. Competition was not very keen, but. prices were fully up to last sale, as follows: Sound. Faulty, d. d. d. d, Halfbred—

LONDON SHORT TERM MONEY RATES LONDON, June 15. Discount and short loan interest rates are:—Day to day loans, J per cent.; fine trade bills, three months, 2 to 21 per cent.; bank bills, three months, gd per cent.; bank bills, six months, | per cent.; Treasury bills, two months, 9-16 per cent.; three Months. 9-16 per cent. ; ' New York call money is unchanged •I 1 per cent.

COMPANY NEWS

COLONIAL MUTUAL LIFE Speaking at the annual meeting of the Colonial Mutual Life Assurance Society, Ltd., in Melbourne, the chairman, Sir Harry Lawson, said that in 1937 all previous records for new business in the ordinary, accident, and industrial departments had been eclipsed. In the ordinary department, sums assured (excluding temporary assurances connected with guaranteed income policies) totalled nearly £13,000,000, which was not only a record for the society, but the second largest volume written of all Australian and New Zealand life offices. Associated with this record production of new business had been a further marked decline in the expenses of producing it. During the year under review the annual premium income on the combined new business operations for the year reached the record high level of £659,635, and the combined premium income of all departments for 1937 was £3,647,745, a record figure, £440,108 greater than the previous year. The valuation of the society’s liability under all policies was made on the same stringent basis as in the previous year. The total surplus was £724,633, which was £122,153 in excess of the surplus for the previous year.

FARMERS’ CO-OPERATIVE (TARANAKI) Net profit of the Farmers’ Co-opera-tive Organisation Society of New Zealand, Ltd., stock and station agents, Taranaki, was £20,408 for the year ended March 31, against £20,954 a year ago, and £16.258 in 1935-36. The profit was struck after providing £13,284 for income tax, £7580 for depreciation, and after payment of a rebate ,to shareholders of 2 per cent, on purchases of merchandise and 10 per cent, on stock commissions.

With the balance brought in, (here is £30,269 available. The directors propose a dividend at the unchanged rale of 5 per cent., requiring £10,585, the addition of £7OOO to general reserve, increasing it to £31,000, to transfer £ISOO to property account, and to carry £11,184 forward.

. The accounts disclose further expansion in trading. Gross profits totalled £130,641, an increase of £9685 over that of the previous year. Expenses rose by £10,886 over the year to £96,949. _ Depreciation charged is £2698 higher than that of a year ago. Reserves and undistributed profits have increased from £22,716 in 1934 to £55,769 in 1938. The paid capital of t £S«„ c £S? pan y is £211,704, against £209,903 a year ago, and shareholders’ funds amount to £267,473, compared with £256,762 in 1937. WILSON’S CEMENT

Although the profit realised is less than last year,- the directors consider that in the circumstances the result is very satisfactory,” said Mr G. Winstone, chairman of directors of Wilsons (N.Z.) Portland Cement, Ltd., presiding at the annual meeting of the company in Auckland. “In the year just ended,” added Mr Winstone. “the company carried the full amount of the increased cost of coal and other materials, higher wages and shorter hours, and sold its cement at a lower price. I believe lam right in stating that the cement industry is the only industry manufacturing building material in New Zealand that has reduced its price and borne the increased cost of production.” Trading conditions throughout the year improved, stated Mr Winstone. and sales of the company’s products increased by 12.88 per cent, over sales made in the previous year. Recently, after conferring with the Department of Industries and Commerce, the cement manufacturers again agreed to reductions in the price of cement at certain points, as from April 4, 1938 The directors felt that the company had gone as far as it possibly could in that direction; indeed, with still rising costs of labour and materials, the position might later have to he reviewed. and an increase in price asked. Naturally, every possible saving and economy would be made, so as to avoid such a step. Wider Uses of Product Trade prospects for the current year appeared favourable. It was hoped that by activity in Government and local body works and private enterprise, together with the decrease in prices referred to, the sale and use of cement would be further extended. Concrete poles for power lines were slowly opening up a new avenue for the sale of cement, and the value of permanent concrete was being brought under the notice of Government departments and power boards. Concrete posts were also being manufactured in larger quantities. Each year further uses for cement were introduced. At present an Australian company was erecting in Auckland a large factory to manufacture asbestos cement sheets and water pipes. Another factory was about to be erected in Wellington for the manufacture of precast stone. Cementconcrete roofing tiles were also in demand, and were being extensively used on Government houses, as well as by private builders. Movements in Accounts

Referring to the accounts. Mr Winstone said that of the profit of £55.442 no less than 27 per cent, was derived from sources other than the manufacture of cement and lime. He mentioned the alterations to capital following the revaluation of assets at the beginning of the year. The amount of £2079 owing to the subsidiary com■pany was for the purchase of coal for manufacture. It was not proposed to aad to reserves,. but to carry forward a balance in the profit and loss account of £37,683, an increase of £10,442 on that of the previous year. Stocks of cement, lime, and other stores, were higher by £3460, and the sundry debtors by £ 13,086, reflecting the increased trading during the year. Shares in the subsidiary, Wilsons Collieries,- Ltd., remained at £50.000. and were fully worth that figure. Shares in other companies were lower by £9987. and the New Zealand Government securities higher by that amount. That was due to the transfer to Government securities of investment in New Zealand State Advances Corporation debentures, which were included under the heading of shares a year ago. Mortgages were reduced by

RESERVE BANK

WEEKLY FIGURES ASSETS AND LIABILITIES (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, June 16. The following is the statement of assets and liabilities of the Reserve Bank of New Zealand as at the close of business on Monday. June 13:— Liabilities £ s. d.

MINING RIMU DREDGE The Rimu dredge return at June 13 was 276 ounces of gold for 133 hours and 46,740 cubic yards'of material excavated. MOSSY CREEK Mossy Creek return is 31oz sdwt for 132J hours and 10,560 yards. MARTHA COMPANY REPORT FOR PERIOD ENDED JUNE 4 [THE PRESS Special Service.] AUCKLAND, June 16. The following information has been telegraphed to the London office of the Martha Gold Mining Company CWaihi), Ltd:— For the four-weekly period ended June 4, comprising 20 2-3 crushing days, 17,378 tons of ore were crushed, for a result of 4884 fine ounces of gold, and 37,060 fine ounces of silver. This includes 79 tons mined from the Grand Junction area, which yielded 17 fine ounces of gold, and 87 fine ounces of silver. No. 6 level, north branch, Martha lode: The Espir rise has been put up a further 15 feet in good grade ore from three feet to six feet wide. No. 7 level, west section, Edward lode: The drive south-west is now at 56 feet, beyond the Alpha crosscut, where the lode is being cross cut.

METALS MARKET

PRICE OP GOLD LONDON, June 15. Gold is quoted at £7 Os 9d a fine ounce. PRICE OF SILVER RUGBY, June 15. Spot silver is quoted at 18|d a fine ounce, and forward at 183 d. BRITAIN’S LEAD IMPORTS LONDON, June 15. Pig lead imports during May were 37,501 tons (29,180 tons in April), of which 21,495 tons were Australian (16,250 tons in April). BRITISH WAR LOAN (BBITISQ OFFICIAL WIRELESS.) RUGBY. June 15. War Loan 3£ per cent, is quoted at £lOl 13s 9d.

£1628, partly by repayments, and partly by writing off. Plant Improvement The chairman also gave details of new plant for production purposes and tne development of special types of cement. The policy was being continued, he said, of keeping the plant abreast of modern practice, by the installation of machines which were not only economical in operating cost, but assisted in keeping up the quality of the product. The company’s steamer Herekino and the village of Portland were in good order. The comfort and welfare of the employees were attended to, and the men and their families lived under good conditions which encouraged contentment and happiness. Referring to the farm, the chairman said returns were satisfactory. The policy of development and improvement of the property was steadily continued. The directors were considering planting in timber trees several areas which were considered more suitable for that purpose than for pasturage. The report and balance-sheet were adopted, and the final dividend approved, making a distribution of per cent, for the year. The retiring directors, Messrs R. E. Williams and G. Winstone, were reelected.

Three-quarter to full-wool 8 to 83 7 J to 73 Half-wool .. - to 7 5 to 53 Short to quarter-wool 5 to 6 34 to 4£ Three-quarterbred- , Three-quarter to full-wool 8 to — 6<i to 63 Half-wool 7 to 7i 5 to 5i Short to quarter-wool 5 to 6 3 to 4i Crossbred— Three-quarter to full-wool 7.? to 5 4 to 6J Half-wool 63 to 5 to Short to quarter-wool 5 to 5i 3 to 4 Merino— Half to three- * quarter-wool 5 i to 74 5i to 7 Hoggets— Halfbred 73 to 7 to _ Three-quarter- _ bred 7i to 7 to _ Crossbred 63 to 6 to • S*elts 1 to 4 to —

(1) General Reserve fund 1,500,000 0 0 (2) Bank notes 13,704,322 10 0 (3) Demand liabilities— (a) State 4,998,559 10 11 (b) Banks 6,657,780 12 5 (c) Other 388,277 6 5 (4) Time deposits (5) Liabilities in currencies other than New Zealand currency — (6) Other liabilities 99,179 15 7 Total Assets (7) Reserve— 27,348,119 15 4 (a) Gold (b) Sterling ex2,801,791 0 0 .changes 16,943,465 3 9 (c) Gold exchange — (8) Subsidiary coin (9) Discounts— (a) Commercial and 228,600 8 3 agricultural bills (b) Treasury and local body bills (10) Advances— (a) To the State or State undertakings— (1) Primary Products Marketing Dept. (2) For other pur4,269,942 18 5 poses <b) To other public 300,000 0 0 authorities . (c) Other — (11) Investments 2,732,064 16 6 (12) Bank buildings (13) Other assets 72,255 8 5 Total 27,348,119 15 4 Proportion of reserve (No. 7 less No. 5),to notes and other demand liabilities 76.683 per cent.

LONDON, June 15. June 14. June 15. Copper— £ s. d. £ s. d. Standard, spot 33 13 U 33 19 41 Forward 33 18 U 34 3 11 Electrolytic .. 38 0 0 38 10 0 to 39 0 0 39 0 0 Wire bars 39 0 0 39 0 0 Lead— Spot 13 6 3 13 6 101 Forward 13 6 101 13 6 10i Spelter— Spot 12 8 U* 12 6 101 Forward 12 11 101 12 10 71 TinSpot 170 2 6 171 7 6 Forward 171 0 0 172 2 6 Silver— Fine, per OZ. 183d 18|d Standard, per oz. 20’ d 20gd