FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22519, 29 September 1938, Page 13

FINANCE AND COMMERCE

gpARE PRICES WEAKEN FURTHER

CROSSBRED WOOLS SELL WELL

Prieto weakened further on the Christchurch Stock Exchange yesterday. The market was depressed all day Government loans weakened to below par in Sydney, but falls in other sections of the market were almost checked. All bond issues were marked down in Melbourne and other sections of the market were also weaker.

Crossbred wools sold well at the latest sale in the London series, but merinos were frequently withdrawn because of firm limits.

Yaidings at yesterdays Addington stock market were smaller and the sale, particularly for fat cattle, much keener. The fat cattle sale was the best for some years. Advances averaged 35s to £2 a head. Sheep improved by an average of 2s a head and other kinds of stock sold at late rates.

Net profits of North Broken Hill for the year ended June 30. 1938, were £475,076. compared with £910,627 a year ago.

LONDON WOOL SALES

Competition Again

Active

merinos frequently WITHDRAWN |gtma> pres* issocuno* —copyright.) LONDON, September 27. At the wool sales 10.332 bales were offered, including 4123 New Zealand and 8351 were sold. There was a good selection and active competition. Crossbreds sold well, favouring sellers. Merinos were frequently withdrawn owing to firm limits. New Zealand lots sold as follows: Greasy crossbred Ineou. lOd to lid; alipe halfbred lambs, Balclutha, 13Jd. Quotations • Quotations for wools of average condition received by the Bank of New Zetland from its London office, under

SYDNEY SALES I $ I RESUME I VALUES FIRM AT LATE RATES KEEN GENERAL COMPETITION (WHITED PRESS 4S.SOCI*riO» CO'PTBIOjn (Received September 28, 11.30 p.m.) SYDNEY, September 28. The Sydney wool sales resumed today. 17,515 bales being offered and 15.230 sold, also 1501 privately. There was keen general competition, particularly from Yorkshire, with good support from the Continent and Japan. Values were firm on closing rates of last week for all best descriptions. Greasy merino made to 16d! PRACTICE OF SPLITTING LOTS

IN OPERATION FOR SOME TIME

The system of lot-splitting, a dispute ■bout which caused the suspension o t the Sydney wool sales on Monday, has operated for a considerable time. One buyer will purchase a large lot ol 30 bales, for example, and will then divide the wool among other buying firms In addition to a much greater amount of work for brokers In making out separate specifications, the system severely restricts competition Buyers will agree before’ an auction that one firm will purchase a particular lot, which will later be divided. Consequently, when the particular lot comes under the hammer, bidding is confined to the one purchaser. If this system is carried too far, the ■ntire range of values at a sale may be aUored. A regulation forbidding this practice exists in New Zealand, but it is never enforced, the general opinion being that brokers, are only too glad to sell their wool without imposing restrictions on buyers LONDON METALS MARKET

MOST PRICES FIRMER AGAIN

butter market lifeless i> LONDON. September 27. I, Ibe butter market is lifeless. The VKhest prices for a fortnight are: New * pWiland salted 116 s, unsalted 118 s; AusMilan salted 114 s to 116 s. SV ‘

LONDON STOCK MARKET

CONDITIONS RELATIVELY CALM MINIMUM PRICES FIXED FOR GILT-EDGEDS (UNITED PRESS (kSSOIUATIOB—COPYRIGHT.) LONDON, September 27. The market is nominal compared with yesterday, which was one of the blackest In the history of the Stock Exchange. A relatively calm condition prevails. The decision of the Stock Exchange Committee to fix minimum prices for gilt-edged for the time being has prevented a repetition of yesterday’s debacle, when prices for Government stocks retreated before heavy selling pressure. The minimum price for War Loan is £93. Other markets are virtually at a standstill, and mostly weaker. Central European bonds have slumped heavily. Quotations

PURCHASES OF FLOUR VICTORIA STOPS FORWARD SALES AMPLE STOCKS HELD IN DOMINION ' Although action has been taken in Victoria and is contemplated in New South Wales to forbid sales of flour for forward "delivery because of the disturbed political situation, similar restrictions are not being taken in New Zealand. Supplies of both flour and wheat are considered to be ample for any emergency. The Victorian Millowners’ Association has revised its sales terms for flour and until further notice, no sales of flour for forward delivery will be allowed. Purchases by bakers will have to be made at the price determined by the association from day to day, and will be subject to delivery within 14 days. The step taken by the association is only an emergency measure, and will be applied temporarily. “There is no need for a similar move in New Zealand.” said Mr A. E. Wish, manager of the Wheat Committee in Auckland. “Provision has been made for an emergency, and we can guarantee that everyone will have ample supplies of wheat and flour. There will be no question of any restriction. Members of the trade have not been stocking up with flour, and that position also is being guarded against.” Supplies of wheat for New Zealand are imported by the Government from Australia. Stocks in Auckland recently have been comparatively light, but a large shipment arrived by the Korowai in the week-end. Deliveries are now being made to storekeepers. GOLD STILL AT HIGH PRICE

MORE HEAVY DISPOSALS

REPORTED

SALES TO THE UNITED

STATES

Since August 3 the sterling price ol gold has increased by 3s 7Jd to £7 5s 7d a fine ounce on Monday. On Tuesday the price dropped Id to £7 5s 6d, and a wireless message received from London yesterday said that £2,331,000 worth of gold had been sold at this figure. Large sales of gold have been made almost every day since August 3, and thus Is belied the theory often advanced in days not so long past that gold has no other use than to be buried in the ground. . ■ • Gold is supplying a very definite want. It makes people who are able to acquire it feel that in a very troubled world at least part of their capital is safe for use whenever they require it. Partly the gold goes into hoards, partly into the vaults of a central bank—at one time the Bank of France, then later the Bank of England, and now the vaults of the Federal Reserve Board of the United States. Gold is pouring into the United States because foreigners who held British currency have transferred it to United States currency. . Yet there is a French economist, one of eminence, too, M. Charles Rist, who has accused Britain “of being an obstacle to economic recovery to-day whether in France or the world as a whole” through her continuation of “a policy of hoarding gold—a policy which has happily been abandoned by the United States.” The accusation is strange, coming as it does from a French economist in view of the fact that France pursued for years a policy of deflation so as to retain an immense store of gold in the Bank of France. Britain, through the operations of the Exchange Equalisation Account, certainly acquired immense stores of gold, but there is not the slightest indication that this acquisition led to a restriction of credit in Great Britain. The economic recession in Britain this year did not originate from mone-

tary . causes, and as the “Economist” declares, ironically enough, the accusation' gets into print at a time when in six weeks the British Equalisation Account sold well over £5tg.50.000.000 of gold, most of which went to the United States.

PAYMENT TO SUPPLIERS

DIVIDEND OF FIVE PER CENT.

CANTERBURY CENTRAL DAIRY COMPANY

The appropriation account in the balance-sheet of the Canterbury .Central Co-operative Dairy Company, Ltd., which was presented at the annual meeting of shareholders, held at the company’s office yesterday, showed a credit balance of £39,127 3s lOd for distribution, after £.1457 7s lOd for depreciation and £750 of the rationalisation account had been written off. The chairman (Mr G. Nairn) presided and there was a satisfactory attendance of shareholders. The directors recommended that the credit balance should be dealt with as follows; — “That a final payment of 3£d per ib be made to suppliers on the whole of the butter-fat supplied during the year, to be included with the payment for the September supply. “That a dividend of live per cent, should be paid on subscribed capital at July 31, 1938.” The butter manufactured for the year showed an increase of 368 tons over the figure for the previous year. The guaranteed price for the 1937-38 season was 13.25 d per lb plus a premium of id per cwt. for butter grading 94 and over, with a further payment of .4 Id per lb, making the guaranteed basic price 13.66 d. It was on this payment for butler that the balance-sheet figures had been calculated. The weight of butter made from each pound of butter-fat used for the manufacture of butter for the year ending July 31, 1938, was 1.22441 b. The report and balance-sheet were adopted. The retiring directors, Messrs H. E. Evans (Fernside), J. H. Prosser (Leeston), and H. T. -Chapman (Little River), were re-elected. At a subsequent meeting of the board of directors Mr G. Nairn was re-elected chairman.

Votes of thanks were passed to the manager (Mr S. J. Smith) and his staff for their co-operation, and to the directors. Reference was made to the satisfactory negotiations concluded in the purchase of the four smaller factories during the year. GERALDINE DAIRY REMAINING FACTORY DEBT TO BE WIPED OFF There was an attendance of about 20 at the annual meeting of the Geraldine Co-operative Dairy Company, which was held at the factory at Pleasant Valley. The chairman of directors (Mr B. Lafrentz) presided. The balance-sheet and report, which have been published, were adopted on the motion of the chairman and Mr R. Scott. The chairman said that all shareholders would agree that the last season had been a good one and the factory had achieved an output—74 tons —which was a record for many years. The total pay-out had been Is 4|d. The pay-out had been made possible, the chairman said, because the manager (Mr A. Coleman) had kept expenses down to a minimum although costs had risen. The factory’s grading marks were also very high and only a fraction below the bigger factories which pasteurised their product. This year, the chairman said, it was intended to wipe off the remaining £7O. of the old loan of £IBSO, which was created when the factory became a co-operative concern. It was also proposed. Mr Lafrentz continued, to pay a dividend of 5 per cent, on paid-up capital. This was higher than many other dairy concerns paid out and should encourage more suppliers to take out shares in their own factory. Mr W. T. Turner said that during the year shares had been taken in the Dominion Rennet Company. Most of the rennet was now made in New Zealand—which was a good thing—and tne company received a rebate on the rennet it used.

In reply to a question by Mr F. C. Neutze, the secretary (Mr Wilfred McClure) said that the local sales had increased a little on the previous year. Messrs A. J. Easterbrook, H. Rowe, W. T. Turner, G. E. Mattinson, and G. Bailey were elected to fill five vacancies on the directorate. Mr C. S. Fraser was re-elected auditor. A supplier said that there would be ' a lot of new suppliers coming to. the factory this year, but the chairman explained that unless these people had notified the factory they had been supplying before August 1 he doubted if the factory would be allowed to take them under the new zoning laws. • Mr Lafrentz was re-elected chairman of directors, and Mr Eastetbrook, deputy-chairman. NORTH BROKEN HILL NET PROFITS HALVED (PRESS ASSOCIATION TELEGRAM.) WELLINGTON. September 28. Cabled advice received by the Stocl Exchange Association states that net profits of North Broken Hill total £473.076 for the year ended June 30, compared with.£910,627 a year ago. SOUTH OTAGO FREEZING (THE PRESS Special Service.! DUNEDIN. September 28. The annual report of the South Otago Freezing Company states that after making provision for depreciation and transferring £9OOO to. reserve for income tax, the profit remaining, including last year’s balance, is £16,814 10s lid. The directors recommend payment of a dividend at the rate of 5 per cent, per annum, which will absorb £6630 10s, and that the balance of £10,183 10s lid be carried forward. INCREASE IN BANK RATE ACTION TAKEN IN LONDON FIRST CHANGE SINCE 1932 LONDON, September 27. The bank rate has been raised by i per cent, -to 3 per cent. ■presumably the rate has been raised to 21 per cent, in the last few days, without a message having been transmitted, for last week the rate was still at 2 per cent., at which level it had been unchanged since June 30, 1932. At the end of March, 1932. the rate was 3J per cent., and a year before that it was 3 per cent.

dale, September 23. are:— d. d. Kcnnos — Super 60-64’s 14 to 14* Ordinary, 60-64’s 12 to 13 Inferior 60-64’s 9* to 10 Halfhreds — 12 to 12* . J*-58’s Sts 11* to 12 50-56's 10| to 11* Croasbreds— SO’s 101 to 10* 48-50’s 10 to 104 46-48's to 10| 44-46’s 93 to 10i 40-44‘s 93 to 101 to 10* 35-40’s 93

LONDON. September 27. Sept. 26. Sept. 27. Cooper— £ s d. £ s d. Standard, spot 42 13 la 42 18 U Forward 42 14 4£ 42 18 9* Electrolytic 47 10 0 47 15 0 to 48 10 0 48 15 0 Wire bars ,48 10 0 48 15 0 lead— Spot 15 14 44 15 8 9 Forward 15 15 0 15 9 44 Spelter— Spot 14 15 74 14 15 7i _ Forward 14 16 UU 14 17 6 TinSpot 194 12 6 195 5 0 Forward 195 7 6 196 0 0 SilverFine. per OZ. 19 7-16d 19g d Standard. per oz. 21d 20gd

This week Last week. Dalgety’s 4 per cent. £ s. d. £ s. d. debs. 93 0 0 — British Tobacco ,. 1 15 0 1 15 7A Goldsbrough, Mort Dalgety’s 10 0 10 0 6 0 0 6 3 9 P. and O. def. stock 0 18 0 0 19 101 Buyers. Sellers; Clutha River 0 1 0 0 2 0 Molyneux River .. 0 0 3 0 0 9