FINANCE AND COMMERCE

Press, Volume LXXV, Issue 22906, 30 December 1939, Page 7

FINANCE AND COMMERCE

I BANK OF ENGLAND j RETURN I NOTE CIRCULATION | HIGHER I RESERVE RATIO FALLS | SHARPLY I . I * I ~ Ccat rso fsis? ■ coptfught • I • LONDON. December 23. I The Bank of Krtz'.and return for the I week ended December 27 is as follows:

The Bank of England discount rate remains at 2 per- cent. CONSOLS AND STOCKS LONDON’, December 2*. The following are the latest ’ quotations for Government securities compared with quotations during last week:—

IBULOLO GOLD WAR AFFECTS TRANSFER OF FUNDS _ War had affected the operations o£ Bulolo Gold Dredging. Ltd., in many "Ways, said Mr C. A. Banks, managingdirector of the company, at the annual meeting of the shareholders in Vancouver. “On its outbreak.” he said, “the Com-Rton-wealth Government passed legislation necessitating the disposal in Australia of the whole of our .gold. The B ®tcise duty increases as the value of the Australian pound drops in relation to the United States dollar. This would Become very severe if the Australian exchange took a sharp decline. The tax hears far more heavily on residents in tht United States and Canada—where the majority of the company’s shareholders ate—than on shareholders residing in Australia, who would. in terms of Australian currency, receive an increasing amount as the Australian pound drons. "I feel that the way in which the tax is levied is unsound. I hope the Commonwealth Government will adjust things in some suitable way. "The measure restricting the export of gold proceeds Is another matter that is causing us some concern. The 1 amount of funds we are allowed to Ming out of Australia is limited to the payment of dividends to shareholders residin'* outside Australia, the up*Sep of offices and the purchase of Slroplies which must he acquired out®de the Commonwealth- For the time Being profits, which are surplus _to dividend reouirements. including MBOimts transferred to the amortisa«on fond will have to accumulate in Australia.” Securities represented by the investment of the amortisation fund, said air Banks, had been realised, and the Proceeds utilised to retire a loan of xporoximatel” 850.09" Canadian dollars. Jfiuch had been obtained from the f?hJt of New Smith Wales. London. |ji connexion with the dredge construction programme. WjOOL APPRAISAL IN ‘I ‘ AUCKLAND 3 * ■ 20,000 BALES VALUED IN I THREE DAYS I ■ ——— [THE PRESS Special Servlcel AUCKLAND. December 29. letter valuing about 20,000 bales in ■“Be days, the staff of appraisers who be:n engaged on the Auckland .Jpol clip completed their work to’W, The first Auckland appraisewas held late last month, but S* Bktra opening was added this week 1 ‘Sur® Original programme in order to 2w, advantage of shipping space Tgw is soon to be available, Wlw Government appraisers left for by the limited express to* ’a Bradford tops market ;-i V" I LONDON, December 38. lH Bradford market is very firm, i Wjle new business.

| GROCERY TRADE | PRICES AND PROSPECTS 1 City stores report exceptionally i good trading before closing for Christi rr.as, but this week has been some- [ what slack. This season the public • purchased very freely, and good clearances are reported by retailers, one i feature being a sustained demand for ‘ all luxury lines, where stocks were [ available. E Resin and Turpentine [ An overseas message on the-future t prospects of both resin and turpentine i states that in the not distant future | both these products are expected to •; make further price advances. I Almonds i As previously considered would bd | the case, no Sicilian almonds have landed this season out of the new crop j harvested in September, this being I due to the Italian prohibition of ex- ! ports of all foodstuffs. A few new Jor- ; dan almonds landed, and although the price was high, the line sold readily at Christmas time. Rice Stocks of Siam and Rangoon rice recently arrived on this market. Samples are good: in fact the Siam rice is excellent. This arrival was welcomed as stocks had been short. Tea Close on 2.500.C001b of Indian tea was auctioned last week in Calcutta, and another sale is scheduled to be held before the New Year, when the market will doss for holiday until the secj end week in January. At the sale j all grades of tea, from mediums up- ■ wards, sold well at previous rates, but commons were irregular, and fannings declined 3 pies. ; The Java tea market is reported as j being quiet, with no price alterations. It is reported that the Commonwealth 1 Government has prohibited the importation into Australia of all tea from [ countries classed as non-sterling j sellers. Apparently this will cover Java f tea, and, if so, it may cause the mar- | ket to weaken, as Australian buyers | have for years been very heavy operaf tors on the Java tea market. I The Colombo market for Ceylon tea j last week was firm for mediums and f better grades, but commons, which were in keen demand, advanced by 2 cents. The report mentions that the firnf general tone in this market is expected to continue for some time. Onions and Maize Prime Globe new season’s onions are now down to £4 5s f.o.b. Melbourne, with other grades down to £3 15s—same terms. The maize market in Australia still stands at 5s 9d f.o.b. Salt British rock salt is now 25s a ton higher than pre-war price, and Australian iodised salt has advanced £1 a ton f.o.b. Salmon Quotations for Japanese packed Sockeye salmon have been received from Australia, and whilst prices seem high, there appears to be no other, more reasonable market open to buyers. This salmon has been previously on this market, and quality is satisfactory. it is. however, subject to extra duty, as being a foreign product, and this adds to landed costs. Olive Oil Small parcels of olive oil have recently landed and the landed cost shows an advance of nearly 22 per cent, over pre-war values. Sugar j The recent abnormal demand for sugar has eased considerably because the public is now using the supplies that were purchased during the period of panic buying about six or eight weeks ago. Fair stocks are now coming forward. and all normal demands are being supplied. Sutter Abundant supplies of separator butter are now coming forward. Inquiries made yesterday disclosed the fact that most city stores were getting full supplies at Is Id per lb net. E;gs Supplies of fresh eggs are still plentiful. but the demand has slackened. Yesterday city stores were paying to farmers for supplies the following net prices: Firsts Is sd, seconds Is 4d, duck Is 4d. INDUSTRY ACTIVE RECORD OUTPUT EXPECTED Steel mills throughout the world are working at top speed to meet war requirements. and. as many countries have been extending productive capacity in the last few years, the records of 1929 have been outstripped. Monthly production in tnat year for the world was 9-5 million metric tons, but by July last the monthly rate exceeded 10 million tons, and it is still rising. At the outbreak of the war, Germany had by far the largest steel capacity of Europe, amounting in theory to some 25 million tons per annum, including territories conquered before Poland. Great Britain ranked second with a little more than 13 million tons, and the combined capacities of Great Britain, France, and the British and French empires were approximately the same as that of Germany. The United States, of course, overshadows all other producers with a capacity of about 52 million tons. Steel ingot production has been the highest in Amercian history since the war started, actual output having reached 102 per cent, of the theoretical capacity which existed in 1929. Some centres in the United States are working at more than 93 per cent, of capacity, and in practice, this is the highest rate which can be maintained for more than the briefest period, since blast furnaces must- be stopped from time to time for inspection and overhaul. The large German capacity is not quite such an advantage to the position of that country as might apoear. as from analitv ooint of view, the German industry is under the_ severe handicap of having been straining its resources for £• veral years to achieve the greatest possible output, with harmful effects on plant. The British Industry, while its organisation has left something to be desired in some respects, has been modernising and extending olant and is still doing so. America has a most efficient and un-to-date industry. as has Austral s " likewise. Ans-+rat-eri —.ns 440.000 metric tons'; in 1934, 527.000 tons, and the rate of cntmit is now approaching treble that figure. LONDON METALS MARKET , ' LONDON, December 28. ' Tin is quoted at £247 10s to £247 5s snot, and forward at £246 15s tq 1 £247; and silver, 22 11-16 d to 241q, ’ Other metals ere unchanged. [ NEW YORK TIN i . . NEW YORK, December 28. Tin is quoted at 49.23 par lbEXCHANGE TURNOVER IN NEW YORK NEW YORK. December 28. , Turnover in the Stock Exchange lo- • day -/as 1,080,000 shares.

COMPANIES’ WIDE POWERS

VARIED PROSPECTUS OBJECTIVES % SOME RECENT FLOTATIONS Powers with which companies provide themselves in their constitutions are almost always as wide as possible: they cover far more than it is ever expected to use. but this is to provide for all eventualities, says a Melbourne paper. A glance at some of the company prospectuses Issued in recent months provides some stinking examples. Moulded Products • Australasia) Ltdtor instance, was formed into a public company earlier this year. The main object is to engage in the plastic trade, but. in addition, the company has power to carry on the business of auctioneers, caterers, cinema proprietors. farmers, printers, stevedores, tobacconists. warehousemen, or any other trade or business which can, in the opinion of the directors, be advantageously carried on. The directors have power to deal in gramophones, pianos, and other musical instruments, to lend money with or without security, and to provide for the welfare of persons employed or formerly employed by the company, and their wives, widow’s, and families. Electronic Industries. Ltd., another recent formation, controls the capital of numerous subsidiaries, mainly employed In the manufacturing and distribution o* radio products. But under the company’s articles of association, the directors are empowered to engage in business as shipowners. newspaper proprietors, insurance brokers, cafe and hotel proprietors. bankers, pawnbrokers, or brewers. etc. They also have the right to establish, operate, and maintain broadcasting stations, and to conduct all branches of insurance except on hitman life. Ensign Dry Cleaners was formed approximately a year ago to enter the dry-cleaning business, but the directors are by no means restricted to that trade. , The company’s articles give them power to deal in all kinds of implements. rolling stock, motor-cars, hardware. furniture, and fittings, and to carry on or establish any other business or businesses to enhance the value or render profitable any of the company’s property or rights. York Motors ( Holding), Ltd., another 1939 flotation, derives its profit from a share-holding in a large motor vehicle distributing organisation. Should they desire, the directors can carry on the business of aeroplane manufacturers, warehousemen, proprietors of wharves, financiers, commission agents, brokers, and general merchants. It will be recalled that the memorandum of Emperor Mines. Ltd., gave the directors of that company wide powers. The search for gold has been the main objective, but the directors can. if they so desire, carry on the business of financiers, bankers, underwriters, shipowners, chemists, manufacturers, and merchants. VEGETABLES AND FRUIT CHRISTCHURCH MARKETS The vegetable market has again beer, i well supplied this week and ruling values are:—Cauliflowers. Is 6d to 5s 6d a dozen; cabbages. Is to 2s 6d a [dozen; lettuces. 6d to Is a dozen; spinlach. Is to Is 6d a dozen; rhubarb, 3s i to 4s 6d a dozen; peas, increased quantities are coming forward and values are lower; potatoes. 2d to 3d per lb; onions. 2id to 4d per lb; cucumbers, Up to 10£ a per lb. Fruit—.Apples. ' supplies are practically finished; tomatoes, good supplies have been coming forward during the week and values have been considerably lower compared with last week. Prices yesterday for best quality were 9d to 10Jd per lb. others 6d to BJd. Cherries, good supplies came forward yesterday and values were: a few extra choice uo to 2s Id per lb: others from 8d to Is 6d per lb. according to quality. Raspberries, steady supplies are coming forward and values yesterday were up to Is Id per _ punnetStone fruits, increasing quantities are now coming on the market and values are: Peaches, uo to 7Jd per lb for choice dessert: apricots, uo to s?d per lb for medium quality. Shipments arriving—A small shipment of Californian onions arrived yesterday. , , , Eggs —First grade Is 61d a dozen; seconds Is 4Jd. DUNEDIN FRUIT MARKETS BRISK BUSINESS REPORTED [Trie PRESS Special Service.! DUNEDIN, December 29. Business has been brisk in the fruit marts during the last week and there has been a keen demand for practically all lines of fruit and vegetables. The market eased a little in most lines compared with prices ruling durmg the previous week, but values suit compared more than favourably wth rates for the corresponding period last year. The first of the season’s raspberries made their appearance during the week, and the supply should increase from now on. Because of the dry weather, the crops are reported to be light, and the season is therefore likely to be short Cherries are in good supply, and satisfactory prices have been obtained for choice quality lines. Small grade cherries are difficult to quit at low’ pi-ices. Peaches are in good supply with prices fluctuating daily according to supplies offering. The market was easier at the week-end. Only small lines of apricots are arriving, but they should increase in supply early in the New Year. Tomatoes were firm throughout the week, and there was a particularly keen demand at the week-end. Out-side-grown tomatoes are not expected until early February, so that it is likely that there will be a good demand for glasshouse lines until the ethers come to hand. Only odd lines of strawberries are coming to hand, and high prices are ruling. Choice quality greep peas have been in Keen demand, _ but poor quality lines have been difficult to place.' Potatoes remained firm during the week. Digging should be more general after the holidays. New season’s carrots and white turnips have been in good demand, and cabbages and cauli- , flowers have been in fair supply. Other vegetables are in fair supply and there has been a normal demand, for them. MOUNT LYELL COPPER PRODUCTION CONTRACT WITH BRITISH GOVERNMENT The quantity of copper involved in the arrangement between the Mount Lyell Mining and Railway Company. Ltd., and the British Government Is a maximum of 7000 tons per annum at £4B 10s sterling a ton, f.0.b., Sydney,

with provisions for adjustments according to costs. Making this announcement at the company’s annual meeting in Melbourne the chairman, Mr P. C, Holmes Hunt, said that Empire properties can produce more than 500.000 tons of copper a year. The whole of this is not absorbed by Empire countries. Great Britain, therefore, can obtain all the copper needed for ordinary uses and munitions from Empire sources. In consequence, it is unlikely that there will be a repetition of the very high prices paid for the metal during the last war. "Indications are,” he said, “that all the copper Mount Lyell can produce should readily find its way into consumption. For some time, the local market has absorbed practically the whole Australian output of refined copper. The demand for industrial and defence purposes exceeds the rate of nroduction.” The activities of the company this year would again be directed to further development and economical working of low-grads deposits. They would shortly be in an even stronger position with regard to plant and equipment than they were a year ago. With additional plant available, they would be better able than formerly to maintain copper production at 13,000 tons a year, even from ore of a lower grade-

ISSUE DEPARTMENT i £ £ 5 Notes issued Govt. Ip circudebt 11.000.000 L i laden Other Govt, In securicfep". ties 565.300.000 Other secunties 3.000.000 Silver coin 700,000 •580.000.000 Geld coin and bullion 200.000 £530.200.000 £580.200.000 •Amount of ' fiduciary issue. BANKING DEPARTMENT £ £ Capital UjWO.WO Govt, scBest 3.400.000 curl ties 151,400.000 Dcuosits— Discs & Public 29.700-000 advances 4.300.000 Bankers 117.300.000 Other seOther curities 24,630.000 a/cs. 42,000,000 Notes & coin 26.600.000 £ 2CS .300,000 £206.300.000 Proportion of reserve to liabilities 15.23 per cent., compared with 14.03 per cent. last week. The principal items of the above return compare as follows with those of last week:— Dec. 20. Dec. 27. £ £ Deposits— Public 34300.000 29.700.000 Barkers 114.900.000 117300,000 Other accounts .. 40.400,000 42.000.000 139,300.000 139.000.000 Securities— Government 145.200.000 151.400.000 Discts. advances 5.400,000 4,300.000 Other securities .. 28.000.000 24.600.000 Reserve 29.000.000 26.600.000 Note circulation .. 552.000.000 552.300.000 Gold cols, and bullion 200.000 200.000

Dec. 21. Dec. 23. £ s. d £ s. d British— Consols. 2i p.c. .. 63 15 0 68 7 6 Funding Loan. 4 p.c. 1560-90 I0S 0 0 ICS 17 6 War Loan. 3i p.c. 1952 82 12 6 93 10 0 Con. Loan. 3J p.c.. 1961 S3 2 6 94 2 6 Victory Bonds, 4 p.c. 104 5 0 IQS 2 6 Commonwealth — 5 p.c, 1943-75 102 0 0 1C2 2 6 4 p.c.. 1943-43 S3 22 6 99 15 0 3} p.c.. 1948-53 .. 94 0 0 94 7 6 .3} p.c.. 1936-61 .. 3; p.c, 1933-53 94 0 0 94 7 6 S3 17 6 S3 5 0 New South Wales— 3| p.c.. 1930-50 .. 93 2 6 S3 5 0 Victoria— 3 p.c . 1939-49 91 10 0 91 10 0 4J p.c.. 1948-60 .. 100 10 0 100 2 6 5 p.c.. 1940-60 101' 20 0 101 15 0 Queensland— 3 p.c.. 1922-47 92 10 0 92 10 0 5 p c.; 1940-60 100 12 6 100 10 0 South Australia — 5 p.c . 1943-75 101 15 «r 101 15 0 3 p.c, 3915 r iopt.) 63 5 0 69 0 0 Western Australia— - 4 p-e„ 1S42-E3 10 o ss e Tasmania— 3J p.C,, 1P30-40 10O o * 0 lOO o o 4 p.c., mth-50 .. S3 5 0 93 0 0 New Zealand— ■<i p.c., 1945-58 .. 93 0 0 S3 1 3 31 p.c.. 1940 — J3 P-C-, 1943 . J 92 10 0 S3 0 0