FINANCE AND COMMERCE

Press, Volume LXXV, Issue 22802, 30 August 1939, Page 11

FINANCE AND COMMERCE

NEW ZEALAND’S GOLD PRODUCTION /j LAST YEAR’S TOTAL LOWEST SINCE 1931 fFron. Our Parliamentary Reporter.! WELLINGTON, August 29. A total of 509,759 ounces of gold-silver bullion, valued at £1,214,054, was produced in New Zealand in 1938. This quantity was 102,709 ounces smaller than the 1937 production, and the value was less by £105,689. The gold content of the bullion was estimated at 152,050 ounces, valued at £ 1,182,719, -this production being the lowest, since 1931. These figures are contained in the Mines Statement for 1938, presented to the House of Representatives by the Minister for Mines (the Hon. P. C. Webb) to-day.

The estimated gold production for the last nine years is given in the statement as follows: Year. Ounces. A 1930 .. .. 120,931 * 1931 .. .. 129,861 1932 .. .. 166,354 1933 .. .. 161.755 1934 .. .. 160,248 1935 .. .. 165,277 1936 .. .. 164,575 1937 .. ... 168,487 1938 .. 152,050 In recording the decrease of 16,437 ounces in the 1938 production, the statement sa£s this heavy'drop is disappointing, particularly as the 1937 production was the largest for 18 years, llie decline was due to substantial decreases in the production of gold from, quartz mining and alluvial min- ■ Ing, amounting for the year to 11,849 ounces and 7213 ounces respectively. Production from dredging showed an Increase of 2625 ounces. Lower Quartz Production The reduction in the gold output from quartz mines was caused by decreases in the amount of gold won from the Martha Mine, the Waihi Grand Junction Mine, the Golden Dawn Mine, and the Talisman Dubbo Mine- The aggregate: production of the Martha and Waihi Grand Junction Mines in 1937 was 59,275 ounces, but for 1938 the figure was 51,950 ounces, a decrease of 7325 ounces. The production from the Golden Dawn Mine Jn 1937 was 3307 ounces, but only 966 ounces in 1938, a decrease of 2341 ounces. The output from the Talisman Dubbo Mine dropped from 1895 ounces in 1937 to 318 ounces in 1938. The decrease in alluvial mining, the Statement says, is due to two principal causes—first, the very dry season; and, second, the increased diversion to other occupations pf subsidised prospectors. The number of men engaged in allu- • vial mining dropped from 2168 in 1937 to 1374" in 1938. Twenty-four . dredges operated in 1938, compared with 22 in 1937. “It is hoped,'’- the statement says, ; s “that during the present year the increased gold production from the operations of the large dredges recently completed or now under con-

struction will more than offset the last year’s reduction in output from the other forms of gold mining. Production and Dividends The following statement shows the quantity and value of bullion production, the dividends paid by registered companies, and the number of productive claims and gold dredges during 1938 and 1937: — of gold ■ Production of Bullion, mining 1938. 1937. . Oz. £ Oz. £ Quartz .. 435,706 622.336 534.424 710,421 Alluvial .. 19,929 149,586 27,142 200,024 Dredging . 54,124 442,132 50,902 409,298 Totals 509,7591,214,054 612,468 1,319.743 Dividends Number of paid by productive registered claims & companies. dredges. 1938. 1937. 1938. 1937. £ £ / Quartz .. 105,041 126,088 59 77 Alluvial .. 13,819 14,683 1,088 2,753 Dredging ... , 98,888 55.533 . 24 22 Totals 217.748 196,304 1,171 2,852 Interest Maintained Interest is being maintained in the mining Industry, the statement says, although the number of licences granted has decreased. During the year ended March. 31, 1939, 568 licences for mining privileges were granted under the provisions of the Mining Act, 1926, compared with 743 for the previous year. . , Out of this number; 72 were licences for claims authorising the holders to mine for gold. For the same period, 384 mining privileges, including 89 licences for claims, were struck off the registers.

The amount of goldfields revenue received and credited to the accounts of local bodies during the / year ended March 31; 1939, was £18,226 12s Id, a decrease of £1278 llg 3d compared with the previous year. During the same period, the total, of the three duties on exported gold amounted to £108,076 15s 4d, of which £5502 5s 9d was credited to the accounts of local bodies under section 12 of the Gold Duty Act, 1908. The special export duty of 12s. 6d an ounce amounted to £lOO,Oll 9s 3d, which was paid into the Consolidated Fund.

AMERICAN MARKETS CALM

STOCKS RALLY AT CLOSE

tPHITKD PB»B8 &BSOCU.TIOB—COPTBIOHT.) WASHINGTON. August 28. Stock markets in America are_ calm to face of r the t international tension. While 'dollars soared in terms of world currency, sterling at 4.29 recovered f?dm the opening rate of 4.12. Stocks, while declining early,; rallied sharply towards-the. close. Bonds, especially those on the foreign list, and: United States issues continued weak.' Polish losing as much as 9 ** closed more than 1 cent higher. Cotton, lost a dollar a bale.

OVERSEAS TRADE RETURNS

JULY IMPORT EXCESS LARGER LOWER EXPORT TOTAL FOR ;■ SEVfiN MONTHS , r (PUSS ISSOOifTIOB TSLIOBAM.) WELLINGTON, August 29. New Zealand’s overseas trade returns for July this year show both exports and imports at lower levels than in the corresponding month a year ago. The reduction in exports was greater than that in imports, with the . result that the excess of imports-rose from £828,000 in July last year to' £905,000 in July this year. July is : normally a month in which imports exceed exports, but this year’s adverse balance is greater than in either 1938 or 1937. For the seven months to the end of July, exports slipped from £41,090,000 a year ago to £40,339,000. - At the Same time imports at £32,649,000 were higher than in the corresponding periods of the tw~ previous. years, and the export excess.: was correspondingly lower. • „ The detailed.returns are as follows: July Excess of - ' Imports. Imports. • £ .1930 ' 3,557,000 4,462,000 '. 905,000 1938 3,783,000 .4,611,000 828,000 1937' 4,824,000 . 4,843,000 19,000 Seven Months .to July . - Excess of Exports. . Imports. ;' Exports. v £ 1939 40,339,000 32,649,000 7,690.000 1938 ,41,090000 31,720,000 ' 9,370,(T00 1937 The value ol specie excluded from the above returns M July, 1939, was: Imports £165. For the seven ’months to July they were: Exports £2795, and imports £8196. AUSTRALIAN RATES OF BROKERAGE MELBOURNE TO MAKE CHANGES The Stock Exchange of Melbourne has adopted; hew brokerage rates, to come, into operation on-September 1. The new schedule of brokerage rates has been adopted by Sydney and Brisbane Exchanges and will become effective in those centres oh the same date. The new rates provide for both buying and selling brokerage on investment shares,, instead of selling brokerage. only, as ih the past. Two-way brokerage is already in operation with bonds and mining shares. Melbourne Exchange has adopted a recommendation providing for reduced brokerage, or no further brokerage, on mining shares sold (or bought) within a month of buying (or selling).' In Sydney and Brisbane six / weeks has been fixed as the period for selling (or buying shares) at concession rates. Brisbane has gone further by extending this - rule - to cover investment transactions also. as has been the. practice in Adelaide for years. Adelaide, however, allows a month, instead of six weeks. . . ~ I Unlisted securities bought or sold for a client by a member will be subject to double.the foregoing rates. A concession applying to mining shares bought or sold is that there will be reduced brokerage, or no further brokerage, if the client sells (or- buys) them again within six weeks. ’ On rights to a new issue by any company‘br okerage will be charged on contract' price at double the ordinary rates, both in the case of buying and selling. Other Commercial News will be found on Fage ,15. ,

COMPANY NEWS

WOOL WORTHS PROPERTIES The new issue of 296,697 preferred ordinary shares had been fully subscribed in spite of the difficulties experienced by, New Zealand shareholders in remitting funds, said Mr C. Scott Waine, chairman .of Woolworths Properties, Ltd., at the annual meeting in Sydney. Through circumstances beyond their control, however, certain New Zealand shareholders had been unable to apply for the proportion of the new issue they were entitled to. These rights had been sold in Sydney and the proceeds distributed among the shareholders concerned. The value of freehold property had increased by £181,370. This was due to properties purchased in New South Wales, Victoria and Tasmania and to developments .of properties already owned. HENRY BERRY AND CO. ANNOUNCEMENT TO BE MADE The directors of Henry Berry and Company (Australasia), Ltd., have advised the Stock Exchange of Melbourne that an official announcement concerning the company and its subsidiaries would be made early in September. It is expected that the annual meeting will be held in October, which .is later than usual. N Following a sharp fall in the price of the company’s shares, the Stock Exchange sent a letter to the company in May suggesting that it would be in the interests of preference shareholders if the company made a statement. The recent price of 11s for the A preference shares compares with 19s at the beginning of April. RAND PROFITS HIGHER • SIX MONTHS’ INCREASE Statistics issued by the Transvaal Chamber of Mines for the first half of the year show that tonnage milled by the mines increased by 2,000,000 tons, compared with the corresponding period of 1938, to 28,500,000 tons. The yield, at 6,259,0000z, increased by 307.0000z. Revenue, at £44,781,000, was £4,414,000 higher, or 31s 5d a ton, compared with 30s lOd for the first half of last year. , Costs increased by £2,500,000 to £27,575,700, and profits showed a rise of £2,000,000 to £17,205,716, equal to 12s Id a ton, compared with -11s Bd. Distributed in dividends in the halfyear was £9,500,000, an increase of nearly £1,200,000. For June, total estimated working , profit was £2,912,124, against £2,961,769 /for May. NEW STORES OPENED

G. J. COLES’ RECORD

It was pointed out by Mr G. J. Coles, chairman of G. J. Coles, Ltd., at the annual meeting in Melbourne, that the opening of 16 new stores during the year ended June 30 was a record for the company. . Four new sites had been obtained _and it was estimated that capital expenditure for the coming year on buildings, plant, and fittings would exceed £200.000. Although turnover during the year again showed an increase, there had been a falling off in sales in some sections, notably Northern Victoria and Riverina. The stores in the capital cities and suburbs had continued to do steady business. The directors considered that the fluctuations had been due to seasonal conditions, and to increased competition in New South Wales and Queensland. CLANDEBOYE DAIRY Statutory statistics shown in the annual report of the Clandeboye Cooperative Dairy Company disclosed that although the total weigi t of , milk received during the year had fallen from 6,635,5031b of the previous year to 5,947,1381b, the average butter-fat test had risen from 3.7085 to 3.7351. The number of suppliers was now 31 (last year 32). The cheese manufactured totalled 565,9521b (640,529). The average grade of cheese stood at 91.9666. (92.530). Product sales during the season amounted to £19,386 5s sd. Transactions in whey cream brought £66 l' 9s lid, which wilfc sundries amounting to £27 12s 2d brought the total revenue to £20,125 7s 6d. Advances to suppliers accounted to £14,801 18s 2d in the payments, manufacturing costs £2448 3s sd, depreciation and maintenance £320 19s lOd, factory charges £587 17s 4d. and overhead charges ‘£4l3 19s 4d. 'The surplus in the appropriation account was £155" 9s sd. The annual report stated that the directorate recommended that the balance of the appropriation account after the final payment and payment of the dividend at the rate of 5 per cent, be carried forward. . Messrs J. Donehue and T. E. Langrell retire from the directorate by rotation, but being eligible for re-election and having offered themselves, they will be elected as they, are unopposed. . WOOLWORTH DIVIDENDS Woolworths, Ltd. (Sydney) has declared a half-yearly dividend of 6 per cent, on ordinary shares, payable on October 1 15.' Woolworths (New Zealand), Ltd., has declared a half-yearly dividend oS 9 per cent, on preference share capital, payable on October 15. HOWARD SMITH DIVIDEND The directors of Howard Smith, Ltd., have declared on ordinary shares an interim dividend for the half-year ended June 30 of 2 per cent., payable, on September 21. The rate is unchanged. MYTTONS» earnings Myttons, Ltd., an Australian company producing architectural metal manufactures, earned during the year ended June 30 a profit of £13,662, compared with £13,011 in 1937-39, and £10,584 in 1936-37. Preference dividend of 6} per cent, requires £1625, and the unchanged ordinary dividend of 10 per cent., £10,896, Turnover was slightly lower during the year. * AUSTRALIAN OUTLOOK SIR THOMAS BUCKLAND’S VIEW Speaking at the annual ' meeting of Pitt, Son and Badgery, Ltd.. Australian woolbrokers, Sir Thomas Bucldand, chairman, said that in view of the. unsettled state of the world the Commonwealth Government had taken adequate defence measures, and the cost of this must come from an increase in the already heavy burden of taxation. Australia, however, was a country which would in the near future carry a population of 10,000,000 people and pessimists should .be discouraged. • . Notwithstanding keen competition and the difficulties of the year, the company had made good progress and the outlook was good.