THE TREND OF BUSINESS

Press, Volume LXXVI, Issue 23051, 20 June 1940, Page 5

THE TREND OF BUSINESS

SLOW RESPONSE TO DEMANDS

FARM PRODUCTION FOR EXPORT

Concluding a review of the trend of business in New Zealand, the June ecpnomic bulletin of the Canterbury Chamber of Commerce, prepared in consultation with the Department of Economics of Canterbury University College, remarks that it would be more encouraging if business were more responsive,- Since import and exchange control were imposed, the bulletin says, there has been some expansion in local .manufactures normally competing . with , imports. But even these have been limited by difficulties in securing, necessary materials, and the depressing effect on other businesses has been considerable.

Moreover, the bulletin continues, these manufactures constitute a small part of total production in New Zealand, and the inqrease in their output may be more than offset by decreases elsewhere.

At present prices, the recent declines from their respective peaks of butter and pork exported represent a loss of about £sm. The prospects for production of other farm exports, though improved by the higher prices ruling under the war agreement with Britain are by no means completely satisfactory. It is significant, too, that last year the Government should have used £ 9.55 m. net of increased bank credit to finance works that are for the, most’part unproductive, while bank advances to private enterprise, most of which must necessarily he productive, fell by £7.35 m. This is a definite example of the transfer of resources, from productive private enterprise to unproductive public works, accompanied by credit expansion, and such financial transfers are usually accompanied by transfers of labour and other resources. In view of the fact that the trend has been in this direction for some time, without any official recognition of its significance, it is little that confidence in the present and future prospects of business is low, and enterprise slow to respond even to the emergency demands of war. COMPANY NEWS amalgamated textiles ■ The directors of Amalgamated Textiles (Australia), Ltd., advise that the net profit for the half-year ended March 31, after providing for depreciation and taxation, stands at £12,012. They state that prospects for the current half-year ending September 30, are good, as defence and trade orders will ensure capacity throughout. The extra cost of raw materials has involved provision of increased trading capital. TUI BREWERY The Tui Brewery, Ltd., has advised the Stock Exchange Association that ?.p interim dividend of hinepence a share is to be distributed on June 24. Last, year’s distribution was interim Is and final of 9d a share, equivalent to 8J per cent. SWAN BREWERY NEW ISSUE The Swan Brewery Company has advised the Stcok Exchange Association that transfer books are being closed on June 25 and 26 in connexion with the new share issue. STOCK SALES BURNSIDE , (tRES3 ASSOCIATION TELE GUAM.) DUNEDIN, June 19. At the Burnside stock sale the penning -of fat cattle was 288, compared with 415 last week. The quality was affected by winter conditions. Values were par to a shade firmer. Extra prime bullocks made to £lB 2s 6d, prime £l4 2s 6d to £ls 17s 6d, medium £ll 17s 6d to £l2 12s 6d, light from £9;-extra prime cows and heifers to £l2 12s 6d, prime £9 7s 6d to £ll 12s 6d, medium £7 2s 6d to £7 17s 6d,’Stores sold readily up to £7 18s for three and four-year steers, and good dairy cows brought up to £l2. .There were 2233 fat sheep forward, including some trucks of outstanding quality Values were firm except for heavy ewes. Extra prime wethers made to 40s, prime 31s-to-35s .3d, medium 26s 9d to 29s 6d, light from 25s 6d; extra prime ewes to 275. 3d,, prime 22s 6d to 255, medium 18s to 20s, light from 12s 6d.' The entry .of fat lambs was 1318. Butchers and exporters competed for all qual-ity--grades. Extra prime' made to 345, prime .27s ,3d to 31s 6d, medium 22s 6d to 255. light from 17s 6d. . ~ . Fat pigs were down by 5s a head, baconers bringing 85s to 121s, while porkers realised 40s to-78s. STORTFORD LODGE (PBESS ASSOCIATION TELEGRAM.) ‘ T- f HASTINGS/ June 19. ; Little ; appreciable .change 'took place in the fat cattle market at Stortford Lodge • to-day, when, the yarding r offered a good range. Quality cattle • sold to a firm demand, ' pen's- of good .store cattle, came forward, and selling attracted little attention, the prices realised giving no indication of the trend of the market. For good'“pens of breeding ewes the market was ■ again dear, but bidding, for other classes was erratic. Values were;— Fat heavy bullocks, £l2 2s eS'to £l2; 12s 6d, medium to good £lO 12s 6d to' £ll 17s 6d; extra prime heifers, £ll 2s 6d, good £8 12s 6d to £9 12s 6d; prime heavy cows £9 17s 6d to £lO 2s 6d. good from £8 17s 6d,. light .and plain .from £4 7s 6d. Store Cattler—Wearier steers .£3 10s to £3. 12s 6di poor weaner heifers £1 2s 6d. • Store Sheep—Two-tOoth eWes in lamb 33s (top price of season), good five-year olds 26s 6d, ewe hoggets 21s 9d to 22s lOd, two-tooth wethers 20s 9d, woolly wether -hoggets 18s lOd to 19s 2d. good ewes for fattening 12s 9d. ■Fat Sheep—Best wethers 24s Id to 26s Id, medium from 22s 7d; heavy prime ewes 25s 6d, good from 23s 4d; plain light lines 15s- Id to T7s 7d; good lambs 23s lOd to 25s ■ lOd, lighter from 19s ■ Id.