FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22466, 29 July 1938, Page 13

FINANCE AND COMMERCE

STERLING EXCHANGE DECLINES SYDNEY STOCK MARKET WEAKER The weekly statement of the Reserve Bank of New Zealand, gazetted last evening, is balanced at £26,998,326 — £988,067 more than last week. The note circulation has risen by £ 17,800. Demand liabilities to the State have increased by £1,120,600 and those to the banks have fallen by £197,200. Other demand liabilities have ii creased by £40,100. On the assets side, the value of sterling exchange has again declined, this time by £507,300. Advances to the Primary Products Marketing Department have risen by £198,600 and advances for other purposes by £1,300,000. The volume of business on the Sydney Stock Exchange yesterday was smaller and there was evidence of weakness. The Minister for Agriculture, the Hon. W. Lee Martin, has announced prices for the 1938-39 contract-grown barley harvest.

MARKETING OF BARLEY PRICES AND CONDITIONS ANNOUNCED STATEMENT BY MINISTER FOR AGRICULTURE [THB PRESS Special Service.] WELLINGTON, July 28. Prices for the 1938-39 contract-grown barley harvest were announced by the Minister for Agriculture, the Hon. W. Lee Martin, in a statement to-day. The Minister said he had acted on the advice of the Barley Advisory Committee and following discussions with the chief buyers of malting barley. "Last season's prices generally were approved by the growers' representatives and the prices for all contractgrown barley will be similar in the coming season," the Minister said. "The following prices for »tM*-tta«Jhedf No. 1 grade malting barley will therefore operate for the coming harvest: Central Otago grown. 5s 4Jd a bushel on trucks; Southland (Garston) grown, 5s a bushel on trucks; Canterbury and North Otago grown. 4s 10Jd a bushel on trucks; Nelson and Marlborough grown, 4s 104 d a bushel in store. "As in the previous season, in an cases where a grower threshes out or stook. a deduction m price of 3d a bushel on the stack-threshed basis may be made and in each case the respective stack or stook-threshed prices for No. 2 grade are 3d a bushel lower for No. 3 grade 8d a bushel lower and for No. 4 grade 9d a bushel lower than the district prices arranged respectively for stack or stook-threshed No 1 grade malting barley. Stacking Period "Up to the present, there has been no uniformity in the various districts on the period for which barley.must remain in stack before threshing to qualify as 'stack-threshed' barley. This differential treatment was discussed by the Advisory Committee, which took the view that such distinctions were undesirable and unnecessary, as the committee considered a six weeks period should suffice in all districts Representations along these lines were made to the principal brewers, who finally agreed to make the concessior asked. The position is, therefore, that in all districts the period for which •stack-threshed' barley must have been in stack before being threshed is six "Attention is directed to the fact that the prices arranged for 1938-39 are applicable only to contract-grown barley. This action has been taken in conformity with a unanimous recommendation of the Advisory Committee which has requested me to urge all barley growers to arrange contracts. In the committee's 'opinion there is every Indication of a lower market rate ruling for free barley than for contract barley. "In bringing to the ncftice of growers the desirability of arranging contracts I would draw their attention to the fact that in 1936 the growers themselves made very strong representations to me to secure the -readoption of the' contract system, and obviously it is in a growers*'own best interest to have an assured market at a remunerative price for the whole of his crop up to malting standard. . . "May I also emphasise the importance of contract growing from the national point of view. Planned contract growing ensures in normal seasons an approximate equation between local supply and local demand, and is thus in itself a determining factor in the- control of imports. To secure the full benefits of the contract system the whole-hearted co-operation of all buyers of malting barley is essential. Buying firms are asked to inform the department of their estimated requirements from the 1938-39 harvest and to indicate the extent to which they have arranged contracts for this quantity. "The advisory committee has recommended that all contracts be in a form approved by the Department of Agriculture, and buyers should take action accordingly. Maltta* Barley Standards

"No alteration is being made in the grading standards this year, but it appears desirable to indicate to grower* generally the protection afforded them by official grading and to outline briefly the procedure to be followed in cases of dissatisfaction. Any grower who considers that his barley is of a higher grade than that determined by the buyer's representative should communicate with the Fields Superintendent of the Department of Agriculture at Christchurch or Dun*siitt a&vismg Tnxm. ot Va& grounds of hi« dissatisfaction and remitting a grading fee of 10s. The" Fields Superintendent will then arrange for samples to be drawn and submitted tor official grading. If the growers contention is supported by the official grading, the grading fee is refunded by the purchasing firm, which is also

obliged to purchase the line at the enhanced price represented by the higher grading. •*I have been asked by representatives of barley growers when making an announcement about prices tp exPress their appreciation of the fair and reasonable spirit displayed by the brewing and malting interests when considering growers' representations, and of the extent to which.such representations have been met. It is with pleasure that I comply with the request, and I take the opportunity of recording my thanks for the very excellent and valuable work achieved by tlje Barley Advisory Committee for the betterment of the barley industry. The progress that has been made iw* the short period of the committees existence is very gratifying to me and to the Government."

\ SYDNEY PRODUCE MARKETS POTATOES UP TO £l6 A TON (Received July 28. 8.50 p.m.) SYDNEY, July 28. Sydney produce prices are: — ■ Wheat—Silo 3s 6d, bagged 3s 9Jd: flour, £9; pollard and bran. £7. Potatoes—Tasmanian £ls to £l6 ethers £ls. Onions—Brown £ll. Maize— Yellow and white, 4s lOd.

DOMINION MEAT EXPORTS DECLINE IN LAMB KILLINGS PROGRESS OP CHILLED BEEF TRADE The slight decline in the Dominion's lamb killings for export in the 1937-38 season is not now likely to be turned into an increase. Not much killing is done in July, and the latest export returns of the New Zealand Meat Producers' Board, just to hand, give a pretty accurate indication of what the final figures will be. For the season from October 1 to July 15, lamb .killings compared with last season are lower by 42,443 carcases. The decline is due entirely to smaller killings in the North Island, the total there being 279,015 carcases fewer than last season, and that for the South Island showing an increase of 236,572 carcases. Other classes of meat with lower export totals this season are frozen beef (a decline of 47,106 quarters), pork (5931 carcases fewer), and bacon (10,808 carcases fewer). . The decline of 36,079 quarters in the North Island's frozen beef killings has been more than offset by the increase of 39,772 quarters in the chilled beef killings. The season for the chilled beef export trade has been a remarkably Sod one. The board's estimate of the final figure is approximately 240 000 quarters, and if this is accurate it 'will mean an - increase over last season's figures of something like 40,000 quarters on 200,000 quarters The cork and bacon killings have been lower in both the North and South Islands. . „„, Increases in other classes of meat are as follows:—Wethers, 28,572 caicases; ewes, 352,435 carcases; boneless beef. 97,357 carcases; boneless bobby veal, 1275 carcases; sundries, 3J.U/& Ca Wether killings in the North Island were lower, but the decline was more than made up by the large increase in the South Island. The ewe killings of both islands were very much larger, but the South Island killings of boneless beef and veal were sightly lower. The following figures show the killings for export at all works for the season from October 1 to July 15 together with the corresponding figures for last season: —

Stocks on hand in stores in t New Zealand at July 15, together with the figures at the same date last season, were: - 1938. 1937.

SHEEPSKIN SAUE LITTLE CHANGE IN PRICES The Christchurch Woolbrokers' Association reports holding its weekly skin sale yesterday, before the usual bench of buyers. Prices showed little change on previous sales. The following is the range of prices:

RESERVE BANK WEEKLY RETURNS ASSETS AND LIABILITIES (VBESS ISSOCIATIO* TELIOBAM.) WELLINGTON, July 28. The following is the statement of assets and .liabilities of the Reserve Bank of New Zealand as at the close of business on July 25:

Proportion of reserve (No 7 less No. 5) to notes and other demand liabilities 70.57 per cent. COMPANY NEWS BANK OF NEW SOUTH WALES The Bank of New South Wales announces an interim quarterly dviidend of 6s a share (Australian currency) payable on August 25. • The rate, which is at 6 per cent, per annum, is unaltered. CLOVERLEA DAIRY Reference to the sound position of the Cloverlea Dairy Company was made by the chairman of directors, Mr J. F. Cairns, at the annual meeting held in Temuka. "Mention has been made," said Mr Cairns, "of the high tests and low yields produced, but then the grade is very high, an improvement of .2 having been shown over the last year. "Recently a report was published in ihp newsor.pers about the quality of New Zealand cheese. While we ore not in a position to say that thp quality has slipped, we do think that it was easier to obtain finest five vears ago than it is to-day. * "It is interesting to compare the grades of the- finest cheese passing throygh the four main South Island ports! of which Timaru heads the list with 32.59 per cent. The North Island average was P. 75. The high ijrade of the article being shipped from Timaru reflects much credit on the suppliers and factory management of this province. "Farm dairy instruction is a move in the right direction," said Mr Cairns, "provided the men appointed are practical and tactful in their duties.' The two retiring directors, Messrs C. C Stanley and R. Macleod were reelected, and the personnel of the board now is the same as last year: Messrs J. F. Cairns, chairman, A. Johnson, B. Trumper, C. C. Stanley tud R. Macleod. . Mr A. C. Martin was appointed auditor, and the directors* honorarium was fixed at the same figure as last year. Trib'iten were paid to the work of the secretary (Mr B. Hughes), and votes of thanks were accorded to l«im the fectory manager, and the staff. SARGENTS SYDNEY, July 28. Sargents, Ltd.. are paying a higher final dividend of 5i per cent. With the 4 per cent, interim dividend, this makes 94 per cent, for the year. AMALGAMATED PICTURES For the year tended February 22 Amalgamated Pictures, Ltd., Sydney earned a profit of £3932, compared with £5690 in the preceding year. Preference dividend is maintained at 1C per cent, taking £I2OO. and the directors recommend a final dividend of 3d a share (U per cent.) on ordinary capital, taking £2125. In the previous year the company distributed a dividend of 3d and a bonus of 3d e share on ordinary shares. The directors state that profit for the year was derived from net rents received, interest and dividends on shares, in companies other than Greater Union Theatres Pty., Ltd., and Australasian Film Holdings. Pty., Ltd.

MINING MOSSY CREEK (paces association tzlsqbam.) GREYMOUTH, July 28. The Mossy Creek dredge return is 250z 9dwt for 8800 yards and 136 hours. EXPORT OF CHILLED EGGS AMENDED REGULATIONS GAZETTED (FSESa ASSOCIATION TELSOKAM.) WELLINGTON, July 28. Amended chilled eggs regulations are issued with the Gazette. These provide that to ensure uniformity in the packing of eggs intended for chilling purposes all such eggs must be packed in clean, odourless packages or containers. The regulations also state that all eggs deposited for chilling in an approved cool store, including eggs deposited by bakers, and pastrycooks for use in their businesses, must be stamped "chilled" and with the number of the cool store. PRICE OP SILVER RUGBY, July 27. Spot silver is quoted at 19 7-16 d a fine ounce, and forward at 19 5-16 d, a decline of 3-16 d in both prices. !

North Island 1938. 1937. Chilled beef (qrs.) Frozen beef (qrs.) 203,196 144,954 163,424 181,033 Wether mutton (carcases) 880,780 904,270 Ewe mutton (carcases) 655,517 451,348 Lamb (carcases) .. 4,532,640 4,811,655 Pork (porkers) Pork (baconers) .. 401,737 404,630 216,388 224,014 Boneless beef (frt. carcases) 523,110 422,953 Boneless bobby veal (carcases^ 66,462 67,016 Sundries 201,830 198,351 South Island 1938. 1937. Chilled beef Frozen beef U38 12^165 Wether mutton .. 118,457 503,915 66,395 355.643 Lambs .. 4,593,193 4,356,621 Porkers' .. 19,665 22,703 Baconers Boneless beef Boneless bobby veal Sundries 12,462 55,263 17,093 114,465 15,644 58,063 15,264 84,868 Total 1938. 1937. Chilled beef Frozen beef Wethers 203,196 146,092 999,237 163,424 193,198 970,665 Ewes - - • • 1,159,432 806,997 Lambs • • ' • • 9,125,833 9,168,276 Porkers Baconers Boneless beef 421,402 228,850 578,373 427,333 • 239,658 481,016 Boneless bobby veal Sundries 83,555 316,295 82,280 283,219

Chilled beef (qrs.V 3,610 4,249 Frozen beef (qrs.) 70,416 103,880 Wether mutton (carcases) , 326,702 349,845 Ewe mutton (carcases) 515,443 365,737 Lamb (carcases) .. 1,330,291 1,531,208 Pork (porkers) 135.224 138,779 Pork (baconers) .. 36,582 26,344 Boneless beef carcases) 222,264 189,355 Boneless bobby veal (carcases) 1,096 6,792 Sundries .. . • . 68,966 66,103

Sound. Faulty. Halfbred— d. d. d. d. Three - quarter to full-wool 9 to n to 9 Half-wool to 8 to 81 Quarter - wool to 6.1 to 6 Three-quarterbred- — Three - quarter to full-wool 8J to 9 74 to 8 Half-wool to 7£ to 55 Quarter - wool to 5J to 4J Crossbred — Three - quarter to full-wool to 8? to 7 Hajf-wool to 8 to 5? Quarter - wool to 7 to 4J Merino — Three - quarter to full-wool to 71 Half-wool to 7i Hoggets— Halfbred to 9 to 8 Three-quarter-bred to 8i to 71 Crossbred to 8 to 7 Lambs— Halfbred to 7i to 7i Three-quarter- . bred to 7i to 61 Crossbred to 7 Pelts .. li to 32-

Liabilities £ s. d. (1) General Reserve fund 1,500,000 0 0 (2) Bank notes 13,563,672 10 0 (3) Demand liabilities— ._ . (a) State 3,710,103 lb 4 (b) Banks 7,775,100 12 11 (c) Other 315,408 19 11 (4) Time deposits .. — (5) Liabilities in currencies other than New. Zealand currency 7,837 13 3 (6) Other liabilities 126,142 12 1 Total 26,998,326 4 6 Assets (7) Reserve— (a) Gold 2.801.791 0 0 (b) Sterling exchange 15,105,673 3 2 (c) Gold exchange — (8) Subsidiary coin .. 228,375 18 11 (9) Discounts— (a) Commercial and agricultural bills — (b) Treasury and ► local body bills — HO) Advances— (a) To the State or State undertakings— (1) Primary Products . Marketing Dept. 4,165,844 4 10 (2) For other purposes 1,900,000 0 0 (b) To other public authorities — (c) Other (11) Investments 2,732,064 16 6 (12) Bank buildings _ (13) Other assets .. 64,577 1 1 Total 26,998,326 4 6