FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22467, 30 July 1938, Page 13

FINANCE AND COMMERCE

NO POTATOES FROM N.Z.

embargo not to be LIFTED AUSTRALIAN GOVERNMENT REFUSES REQUEST f ; (SUITED PBE39 ASSOCIATION—COPYRIGHT.) SYDNEY, July 29. The Federal Government has refused the request of the New South Wales Chamber of Fruit and Vegetable Industries to permit the importation of New Zealand potatoes. Because of the high price of potatoes In Australia, the Chamber asked the Government to remove the embargo on New Zealand potatoes if New Zealand admitted New South Wales mandarins in return. New Zealand potatoes are excluded from Australia on the ground that there is corky scab among them. A cablegram printed yesterday morning gave the price of potatoes in Australia as £ls to £l6.

WORLD'S GRAIN CROPS

OVERSUPPLY OF WHEAT LIKELY V \ ' ECONOMIC COMMITTEE’S SURVEY The Imperial Economic Committee’s annual review of grain crops, which has just reached New Zealand, shows how rapidly conditions in the world market for wheat have changed in recent years. The world's visible stocks of wheal totalled more than 32,000,000 tons at the end of the 1933-34 season. From this peak they had been so much diminished by August, 1937, that the total of 14,250,000 tons was the smallest figure for more than 10 years. Prices rose sharply in 1936-37 with the fall in supplies, and farmers all over the world sowed an appreciably larger area with wheat for the 193738 crop than in the previous season. Though there was not a proportional increase in the world production of wheat (excluding Russia and China), nevertheless the harvest was larger than in any of the three preceding seasons. Consequently, stocks this August are expected to show an increase of about 2,000,000 tons over last year, much of this increase occurring in the United States, where the wheat crop in 1937 was bigger than at any harvest •ince 1931. Stocks in Canada and Argentina are unlikely to differ much from the totals recorded in August, 1937. for in both countries the last crop was small, because of drought and frost damage respectively. The imperial Economic Committee’s review describes the recent changes ? in the wheat trade of the principal t countries. The United States, having bountiful supplies in the current 193738 season, has resumed its old position as a wheat exporter, whereas last season it was importing heavily. The Soviet Union has increased its ex-, ports, whilst Australia also has larger supplies available. On the other hand, both Canada and Argentina nave only a small' exportable surplus. Last season Italy end • Germany were large importers. This season Germany has again been importing on a considerable scale. Italy’s immediate import requirements were less because of the large harvest reaped In 1937. In some parts of Europe, notably in Italy, the harvest from the 1938 crop is likely to be comparatively small, because of adverse weather. Larger imports may therefore be necessary. In the Far East hostilities have curtailed imports. Prospects For Future Aa to the future position, the review draws attention to the fact that in few parts of the world has there teen any indication that the area devoted to wheat for the 1938-39 crop will be substantially reduced compared with the last sowings. Since last autumn the price of wheat has shown a downward trend, and recently the decline has been rapid, due very largely to the prospect of a bumper harvest in the United States this 'year. It is too early yet to judge what the final outturn will be, but it seems that the world crop, providing the harvests ■ire normal, may be substantially larger than the demand, even If the European demand is stimulated by government purchases to build up reserves of wheat against possible emergency needs. The review also covers barley, oats, maize, rye and rice. It forms a convenient source of information on world cereal production and trade in the years 1030-37, and particularly on the part played by British Empire countries. Special sections deal with the net trading position of the Emimports into the United Kingcoin, the trend of prices, and on custS ma ui Uties an< * im P° rt restriction in , ne chief European importing counXPlfcS. { CHEESE COMPETITION ORARI COMPANY WINS CUP ■The cup presented for competition by *«e Timaru Harbour Board among dairy companies in the district sending 70 cent, of their output through the port of Timaru has, it was anPounced at a meeting of the board yesterday, been won by the Orari Dairy factory Company, with 92.798 points, resu lts were as follows:—Mil-n9r'7oiraCoor^.92-751 ’ 2; Cloverlea factory. w. 727, 3; Clandeboye factory, 92.514, Jl Geraldine factory, 92.477, 5; Temuka fa ctory. 92.168, 6. a £ om P eti tion was judged by Mr tr t •., R ° SS - Government dairy grader at Lyttelton. The cup will be presented xq a representative of the winning company at the next meeting of the board year , the winning company war GJandeboye Dairy Factory Comuany, and the previous year the cup n k y *k e Cloverlea Dairy Factory Company.

'i PRICES FOR BOBBY T CALVES

9/8 A HEAD IN SOUTH CANTERBURY prices to bo paid for bobby calves pooled with the South Canterbury Calf Export Committee are announced as 9s 8d a head, opening price, *®d "3 for rejects. The first collection wiu be made on Monday next, according chairman of the committee (Mr W. H. Staniland), who has been instructed to make arrangements with the carrying contractors for the calls to be made. . The operations of the last few yea s nave been so successful that the committee proposes to make an extension

COMPANY NEWS

NATIONAL BANK CHAIRMAN’S ADDRESS AT ANNUAL MEETING <TBOII OU» own COBBESPOSOENT.) LONDON, July 9. “The difficulties I referred to last year, loss of exchange business, low interest rates, and increase in the cost of labour, all enforced by legislation, remain with us, and it is still far from easy for the banks operating in New Zealand to make profits,” said Sir Austin Harris, the retiring chairman of the National Bank of New Zealand, Ltd., at the annual meeting in London on July 7. “With the decrease in banking resources and the continued falling-off in the percentage of fixed deposits, the competition of the Post Office Savings Bank has become more than ever acute,” the chairman continued. “One remedy would, of course, be to increase the rates we offer for deposits, but, as this would involve an increase in advance rates which is directly contrary to the policy of tue Government, we hope that the difficulty may be met in some other way. Social Security Scheme

“During the year the Government has devoted much time to the development of its plan for national superannuation and health insurance,” added Sir Austin. “This scheme, in the form in which it has been made vmblic, must involve a heavy drain on the future finances of the Dominion, as well as a serious burden on the individual taxpayer. It is, however, premature to make definite criticism before the details of the bill which will be submitted to Parliament have been published. “I referred last year to the serious strain which is imposed upon us in our assessment for income tax. We were hopeful that some amending legislation would have been introduced before this, but, contrary to our hopes, this has again been postponed. “A General Election is due to be held before the end of the year,” Sir Austin continued. “The approach of an election is always a disturbing factor, and it is not surprising that many people in New Zealand are adopting a cautious attitude and are slow to undertake commitments until the result of the election is known.

, A Danger of Over-stocking “We are anxious at all times to assist the industry and production of New Zealand to the best of our ability, but we should be failing in our duty as bankers if we shut our eyes to the danger that may arise from overstocking at a time of uncertainty for trade and a continuance of large imports when exports are bringing in a smaller return. “During the last two years there has been a considerable fall in the net overseas funds of the _ Reserve Bank and trading banks,” Sir Austin said. “In this connexion it is pertinent to remember that more than £17,000,000 of New Zealand Government bonds fall due for repayment in London at the beginning of 1940, but I have no doubt that this is being b9rne in mind iw the Dominion authorities. “In spite of all this, I am hopeful that the signs of returning confidence and the easing of the international tension, which during the last few weeks have shown themselves here, may be the precursors of a general economic recovery and may lead to better times ahead,” concluded Sir Austin. MILFORD DAIRY The Milford Dairy Company held its annual meeting of shareholders yesterday in Temuka. Two vacancies were left on the directorate by the resignation of Mr A. R. Guild and Mr W. W. Westaway, and the successful candidates at the election were Messrs B. R. Gason and J. R. Turley. The other directors are Messrs P. M. Downes (chairman), R. M. Mills, and E. R, Comer. A dividend of 4 per cent, was declared. The remuneration of the directors was fixed at the same figure as last year. Congratulations were extended to the secretary (Mr B. Hughes) and the factory manager (Mr R. Lyall) for the efficient running of the company’s affairs in the last year. N.Z. FARMERS’ FERTILISER (FBESB ASSOCIATION TELEOSU.iI.) AUCKLAND, July 29. At the annual meeting of the New Zealand Farmers’ Fertiliser Company the chairman (Mr A. A. Ross) said that to meet the needs of expanding business the board proposed to Issue fresh capital. It is suggested that shareholders will be asked in a month to sanction the issue of cumulative preference shares at 53 per cent, per annum. WELLINGTON INVESTMENT The Wellington Investment, Trustee and Agency Company advises that at the annual meeting on August 11 a final dividend of. 2J per cent., making 5 per cent, per annum, will be recommended. BROKEN HILL SOUTH The Broken Hill South Company has declared a dividend of 6d a share. LONDON SKIN SALES AVERAGE SELECTION OFFERED CONTINENT AND AMERICA BUY FREELY The July series of the London skin sales were held on Thursday before a large attendance of buyers. There was an average selection of all qualities of New Zealand sheepskins and competition was spirited, all sections operating freely, especially the Continent and Current values for New Zealand sheepskins are;— Halfbreds. 50-sU’s d-Full-woolled . • .. 93 Half to three-quarter woolled .. 8 ; ! Quarter to half-woolled .. 63 Three-quarterbred, 48-50’s Full-woolled • • .. 83 Half to three-quarter woolled .. 8 Quarter and half-woolled .. 63 Crossbreds, 44-46’s Full-woolled .. ~ 8j Half to three-quarter woolled .. 1\ Quarter-to half-woolled .. 63 Hoggets—' ' Fine 50-58’s .. ..93 Coarse 44-48’s .. .. 83

to the area covered by its collections. Calls will be made as far as McClure’s corner, Geraldine, and Mr Staniland will, with Mr J. Donehue. confer with fanners at the next meeting of the Pleasant Point branch of the New Zealand Farmers’ Union, proposing to. include them.