FINANCE AND COMMERCE

Press, Volume LXXVI, Issue 23052, 21 June 1940, Page 11

FINANCE AND COMMERCE

PRODUCTION IN FACTORIES -r- ____

INCREASE IN NUMBER OPERATING PREPONDERANCE OF SMALL UNITS

More than 6000 factories, employing 102,535 persons and paying £22,270,010 in salaries and wages, came within the scope of the annual statistical report for 1938-39 on factory and building production in New Zealand. The actual number was 6146, an increase of 222, or 3.7 per cent, on the number operating in 1937-38. The number of persons engaged was higher by 191, or 0.2 per cent., and salaries and wages paid increased by £1,283,423, or 6.1 per cent. The report, compiled by the Census and Statistics Department, Wellington, emphasises that the statistics do .not cover, and do not purport to cover, all establishments registered as factories in the Dominion. “One man” businesses are excluded, except tanneries, bacon, butter, cheese, soap, and candle factories, brickyards, and lime works; and some small repairing shops are also excluded even though they may employ two or more hands. - The effect of these limitations in the scope of the statistical inquiry is seen from the fact that while for the year 1938-39 17,842 factories, employing 123,723 hands, were registered under the Factories Act, only 6146 factories (with, however, 102,535 persons engaged) were covered by the statistics of factory production. Small Units The increase in the number of establishments coming within the scope of the inquiry is the most noteworthy feature of the statistics. This is the first time the total has exceeded 6000. The industries contributing chiefly to the increase were:—Coachbuilding and motor engineering 83, furniture 33, clothing 23, electrical engineering 13, concrete block and fibrous plaster 9. Principal' decreases were:—Sawmilling 30.- flaxmilling 13. butter and cheese 9, joinery 4. The average size of the industrial unit in New Zealand is small, factories employing 10 persons or fewer accounting for approximately 67 per cent, of the total number of factories. The number of persons engaged in waqtory production (including working proprietors) was a new high record, exceeding the 1937-38 figure by 191. The industries chiefly responsible for this small increase were:—Coachbuilding, motor engineering, etc., 380, electric supply and generation 312, brick, tile, etc., 208, tinned plate, etc., 196. printing and publishing 184, electrical engineering 163, general engineering 141. Decreases were:—Clothing 646,. Eawmilling 447. woollen-milling 342, flaxmiHing 283, butter and cheese 184. Value of Products The total value of products for 193839, £114,447,426, established a new record high level and eclipsed the previous peak attained in 1937-38, £113,691,556, by more than £750,000. Among individual industries the greatest absolute increase was disclosed by the figure for the electricity generation and supply industry, £620,291. Other marked increases were:—Coachbuilding and motor engineering £354,980, tinned plate £200,020, joinery £165.048, lime and cement £158,426, concrete block .and fibrous plaster £125.848, general engineering £110,664. The principal decrease was in the meat freezing and preserving industry, £574,567. Other notable decreases were;— Butter and cheese £432.704, woollen-milling £306,683, grain-milling £191.841, fellmongering and wool securing £174.869, clothing £152,963. The value of products is based upon the valuation of goods at the factory door. The report points out that in making use of the figures of gross value of products it must be borne in mind that they include the value of raw materials operated unon, which constitutes about two-thirds of the total value, the actual nroportion having fluctuated between 60 and 67 per cent, during the last 10 years. Among the factors operating to reduce this proportion is the development of secondary industries in which the processes are more involved and add .a greater relative value to the raw materials worked upon. Where the products of one industry— for example, sawmilling—are treated again in other industries such as furniture-making and joinery, it is obvious that the value of timber shown as products of the former industry appears again as the materials of the latter industry, and enters into the value of joinery and furniture made.- Duplication of this kind is apparent in many industries. “Added Value” As indicated, therefore, the value of products is not always a satisfactory measure of either the absolute or the relative importance of a given industry, for the reason that only part of this value is actually created by the manufacturing processes carried on in the industry itself. Another part, often by far the larger part, represents the value of the materials used. From the industrial viewpoint, therefore, the best measure of the importance of an industry is the value created by the manufacturing operations carried on within the industry. This value is obtained by deducting the cost of materials used from the value of the products, and is referred to as the “added value.” , '"he added value for 1938-39 recorded upward movement of £495.862, or 1.3 per cent, compared with the pre--2’ 1 " us Tile industries mainly contributing to this rise, together with their absolute and relative increases, non 6 ’ —®^ eat freezing and preserving, £301.669, or 8.6 per cent, over the 1937-38 ' figure; lime -crushing and cement-making, £136,846, or 19.1 per cent.; general engineering, £135.420, or 9.7 per cent.; tinned plate. £120,038. or 23.1 per cent.; coachbuilding and motor engineering, £98,648, or 2.6 per cent.: biscuit and confectionery, £98,291. or 12.1 per cent.; and brick, tile, and pottery, £82,199. or 18.6 per cent. The chief decreases were;— Brewing and malting, £195.748. or 16.4 per cent.; sawmilling. £116,818, or 3.3 per cent.; clothing, £99.681. or 4.8 oer cent; aerated water. £95,424. or 28.1 per cent.: agricultural and dairy machinery, £95.112. or 17.3 per cent.; electric supply, £83.970. or 6.7 per cent. Geographical Distribution Constituting as it does the value created in industry, the added value, when classified by provincial districts, £ lv es a good general idea of the geographical distribution of industrial production throughout the Dominion. The classification gives the following percentages to the totals for three years:—Auckland. 1936-37, 35.8 per cent.; 1937-38, 35.3 per cent.; 1938-39, •55.8 per cent.; Wellington. 23.3 per cent., 24.2 per cent.. 23.8 per cent.; CaniVr ury ’ P er cent., 15.1 per cent., 14.4 per cent.; Otago (excluding Southland), 10.8 per cent.. 10.3 per cent., 10.2 per cent. Other interesting figures in the report cover_ motive power, value of land, buildings, plant, and machinery, and overtime and short time worked.

RESERVE BANK RETURN

Sterling Exchange Lower REDUCTION IN ADVANCES TO STATE

The Reserve Bank’s holding of sterling exchange at the close of business on Monday was £14,546,012, a tali or £83,087 on the figure a week ago. State deposits were lower by £741,337, and those of the banks, at £15,719,365, were £541,711 greater. The note issue, at £18,369,114, showed further slight expansion. Advances to the State for marketing were lower by £103,341, and those for other purposes were unchanged at £19,760.000. The bank’s return, with changes compared with last week, is as follows: — Liabilities —(1) General reserve fund. £1,500,000 (same); (2) bank notes. £18,369,114 ( + £37.776); (3) demand liabilities: (a) State, £7,050,833 (—£741.337); (b) banks, £15,719,365 ( + £541,711); (c) other, £251,531 ( + £57,954); (4) time deposits, nil (same); (5) liabilities in currencies other than New Zealand currency. £18,509 (—£111);. (6) other liabilities. £786,665 (—£49,651). Total, £ N.Z.43,696,024 (—£153,657). Assets—(7) Reserve; (a) Gold. £2,801.839 (same); (b) sterling exchange in New Zealand currency, £14,546,012 ( £83,087): (c) gold- exchange, nil (same); (8) subsidiary coin, £156,664 (—£3527); (9) discounts: (a) commercial and agricultural bills, nil (same); (b) Treasury and local body bills, nil (same); (10) advances; (a) To the State or State undertakings;, (1) Marketing Department, £3,614,038 (—£103,341); (2) for other purposes, £19,760,000 (same): (b) to other publicauthorities, nil (same); (c) other, nil (same); (11) investments, £2,540,12. ( + £1473); (12) bank buildings, ml (same): (13) other assets. £277,341 ( + £34,823). Total. ' £N.Z.43.696.024 (—£153,657). Proportion reserve (No. 7 less No. 5) to notes and other demand liabilities. 41.868 per cent. (41.963 per cent, a week ago). BRITISH OVERSEAS TRADE IMPORTS AND EXPORTS HIGHER RETURNS FOR MAY AND FIVE MONTHS {UNITED PEERS ASSOCIATION —COPVEIGHT.) (Received June 20, 5.5 p.m.) LONDON, June 19. British overseas trade .returns for May show that the totals of both imports and exports were higher than in May. 1939. Total imports were valued at £105,552,962, compared with £109,893,390 in April, and £78,509,294 in May last year. Total exports amounted to £45,499,645, against £48,299.823 in April, and £42,273,350 in May last year. Re-exports fell to £3,212,913 from £4,434,290 in April and £5,012,363 in May last year. „ , The figures for the first five months of the year were:—lmports. £522,309,337, an increase of £156,250,608 over the corresponding period last year; exports, £213,706,329, an Increase of £17.299,220 compared with the first five months last year. LINEN FLAX MILL AT TEMUKA URGED COMMITTEE SET UP BY COUNCIL The claims of Temuka for the erection of a linen flax mill will be pressed by a special committee en a suggestion by Cr. P. H. Lynch at a meeting of the Temuka Borough Council. Cr. Lynch said that since it had been decided to grow . certain acreage in South Canterbury, Temuka was a suitable centre for the erection of a mill. Flax had been grown in past years in Temuka and there had been a mill near the town. It was agreed to form a committee to press the matter and to ask both the Temuka Farmers’ Union and the Temuka Pr igress League to appoint two representatives. The Mayor (Mr A. W. Buzan) and Crs. P. H. Lynch and C. D. Hayhurst were’ appointed to represent the Borough Council. OIL SEARCH IN NORTH ISLAND PROGRESS AT MORERE AND MIDHIRST (FEESS ASSOCIATION TELEGRAM.) GISBORNE, June 20. The New Zealand Petroleum Company reports that the Morere well is at a depth of 3312 feet. The well is closed in. While mixing fresh mud the old drilling mud became cut or lightened by gas. The closed-in pressure at , the well-head is 675 pounds a square inch. The Midhirst drilling has been commenced. The depth is 285 feet. The well is being reamed out to full size. OTIRA TUNNEL FREIGHT Last week freight hauled through the Otira tunnel amounted to 14,903 tons, compared with 14,133 tons in the corresponding week of 1939. and 14,345 tons in- 1938. SYDNEY PRODUCE MARKETS TASMANIAN POTATOES AT £l2/10/(Received June 20, 10 p.m.) SYDNEY, June 20. The Sydney wheat market is brighter at unchang ’ rates. Q itations; Silo grain 4s; bagged 4s 3d; flour, £l2 10s; bran and pollard, £5 10s; potatoes. Tasmanian £l2 10s, others £11; onions. Brown Spanish £ 12, white £ 10; maize, yellow and white, 4s 9d. MINING COMPANIES’ REPORTS Grey River—Return for week ended June, 19. 206 dunces from 73,452 yards dredged in 119 hours. Mossy Creek—6ooz sdwt in 132 hours from 8766 yards. Metals in London—Tin: Spot buyers I £266 10s, sellers £266 15s-; forward £268 J 15s and £269. Silver; 23£ d standard and' 54 15-I6d fine.

STOCK EXCHANGE BUSINESS

NEW ZEALAND BREWERIES RECOVER

FIRMING IN GOVERNMENT ISSUES

Three parcels of brewery shares were the only sales recorded on the Christchurch Stock Exchange yesterday. Two of the parcels were New Zealand Breweries, which sold at 31s, a price which showed a sharp recovery on recent rates. More were sought at that price, but sellers wanted 31s 9d. The remaining sale was in Dominion Breweries (cum dividend), which declined to 295, with late offers at that price failing to attract sellers. Buyers of Quill, Morris (1936), cum rights, lifted their offers to 22s 6d, but sellers wanted 265. Government issues showed a firming tendency, with buyers of (he 4 per cent., 1946, at £lO2 12s 6d. and of the 1955 at £lO3. Sales .on ’Change—2oo Dominion Breweries (cum div.), 295; 200 N.Z. Breweries (2), 31s. LATEST QUOTATIONS N.Z. Govt. Debentures—3 p.c. Ins,, 193941, b. £100; 3i p.c. Ins., 1953-57, b. £100; 4 p.c. Ins., 1940-43, b. £IOO 10s; 4 p.c. Ins., 1943-46, b. £lO2 12s 6d; 4 p.c. Ins., 30/11/48, b. £lOl ss; 4 p.c. Ins., 1946-49, b. £lO2 15s; 4 p.c. Ins., 1949-52, b. £lO2 12s 6d; 4 p.c Ins., 1952-55, b. £103; 4 p.c. Ins., 1954-58, b. £lO3 ss; Rural Bonds, 5 p.c., 15/9/47. b. £lO3. Other Debentures—Mortgage Corpn., 3g p.c., 1/9/55-60, s. £9B; Majestic Theatre (In’gill), 5 p.c., 20/3/52, s. £IOO. Banks—Australasia, b. £8 ss; N.S.W., b. £25, s. £29; N.Z., b. £1 18s. Insurance—N.Z.. s. £2 16s; Standard, b. £2 18s. Loan and Agency—Dalgety, s. £6 ss; Invincible Build., s. £5 ss; United Build., b. 19s lOd. Frozen Meat—Cantby.. s. £lO 15s; Gear (cum div.), s. 14s Gd; N.Z. Refrig. (£1 pd.). s. £1 0s 3d. Woollens—Bonds Hosiery, s. £1 Gs 6d; Kaiapoi (17s pd.), s. 15s; Kaiapoi (7s pd.), s. ss; Kaiapoi (pf.), s. 18s. Coal—Westport, b. £1; Westport-Stock-ton, s. 2s 6d; Westport-Stockton (pref.), s 6s. Gas—Christchurch, b. £X 3s 9d, s. £1 5s 6d; Christchurch (10s pd.), b. 11s 3d, s. 12s 3d. Breweries —Ballins (Iss pd.), b. 9s, s. lls; Dominion, b. £f 9s; N.Z., b. £1 11s, s. £1 lls 9d; Ward (in liqdn.), s. Is 6d. Miscellaneous—Alloy Steel (N.Z.), b. £1 12s; Booth, Mac. (pf.), b. 2s 3d; C.F.C.A., b. 8s; Dom. Builders (cum div.), s. 6s; D.I.C. (pf.), b. £1 2s; Hay’s, Ltd. (con.), s. 17s; Milburn Lime, s. £2 Is; Macduffs, s. Gs 6d; Macduffs (pf.), s. 15s; McKenzies, s. £2 Is; National Electric, s. 18s 6d: N.Z. Drug., b. £3 10s: N.Z. Farmers (A pref.), s. £2; N.Z. Farmers (4J p.c. Stock, 1949) s. £BS; N.Z. Farmers (41 p.c. Stock, 1950) s. £BS; N.Z. Farmers (4J p.c. Stock, 1955), s. £35; Quill. Morris (1936), b. £1 2s 6d; s. £1 6s; Wilson’s Cement, b. 15s 6d: Woolworths (N.Z.) (ex div.). b. 12s 9d: Woolworths (N.Z.) (pf.), s. £1 15s. N.Z. Mining—Addisons, b. Is; Alexander, s. 9s: Alexander (15s pd.). s. 6s 6d: Argo, s. lOd; Big River, b. 6d, s. 10Jd: Grey River (cum div.). b. 14s, s. 14s 6d; Moonlight, s.,Bd; Ncmona, s. 6d; New River, s. £1 6s; Okarito. s. Is 6d: Workson. s. sd. Unlisted Stocks—Assoc. Gold Dredges (8s pd.), s. 9s 9d; Ass. Mot. Pet. (pf.). s. £1 6s: Christchurch press, b. £6 ss: Lange’s Mobile Gas. s. 18s: Paparoa Coal, s. 6s 9d; White’s Electric, s. Id. AUCKLAND Sales—Rural Bonds, 15/9/47, 4 p.c., £103; N.Z. Govt. Stock. 15/1/53-57. 31 p.c., £IOO 10s; N.Z. Govt. Stock. 31/5/54-58. 4 p.c., £lO3 10s; N.Z. Govt. Stock. 15/3/40-43. 4 p.c., £101; Franklin Power Board, 2/8/63, 41 p.c., £106; North Canterbury Power Board. 1/5/52, 41 p.c.. £lO3 10s: North Canterbury Power Board, 1/5/51, 41 p.c., £lO3 7s 6d: Bank of N.Z.. 38s 9d, 39s 9d; N.Z. Insurance. 555. 54s 9d: Dominion Breweries, 29s 3d; Con. Brick, 7s lOd, 8s; N.Z. Newspapers, 26s (late sale odd lot). WELLINGTON Sales—N.Z. Govt. 4 p.c. Stock, 1946, £lO2 10s; N.Z. Govt. 4 p.c. Stock, 1949, £lO2 15s: N.Z. Govt. 4 p.c. Stock, 1949, £lO3 (all late Wednesday): N.Z. Govt. 4 p.c. Stock. 1943, £101: N.Z. Govt. 3J p.c. Stock. 1957. £IOO 10s; N.Z. Govt. 4 p.c. Stock. 1958 (2). £lO3 10s: Bank of N.Z. (2), 38s 6d; Dominion Breweries, 295; N.Z. Breweries, 30s. Unofficial List—British Standard Portland Cement, Is. DUNEDIN Sales—Kaiapoi Woollen (ord.), 14s 6d; N.Z. Govt. 4 p.c. Stock, 1952-55, £lO2 10s; Natl. Bank of N.Z., 36s 6d; Bank of N.Z., 39s 3d; Bruce Woollen (ord.), 14s 6d. SYDNEY The Sydney Stock Exchange was dull yesterday. _ . Morning Sales-rßank of N.S.W., £24; Aust. Gas A., £5 10s: Tooths, 43s 3d; Associated News, lls; Aust. Con. Industries, 30s 9d; Broken Hill Pty., 40s; Cash Orders. 12s 3d. ■ Afternoon Sales—Colonial Sugar, £45 12s 6d; Howard Smith, 19s; Huddart Parker, 475; British Tobacco (pref.). 28s; Aust. Con. Industries, 31s; Aust. Con. Industries (cont.), 12s 3d; Cash Orders. 12s 3d:, Gordon and Gotch, 34s 6d; Electro. Zinc, 41s 6d; Mt. Morgan, 8s; Mt. Lyell, 22s 7d; Arahura. 235. MELBOURNE Sales—Natl. Bank (£5 pd.), £5 3s; Coles, 535. 6d; ' Heralds, 465; Yarra 'Falls, 38s; Cox Bros., ss; Dunlop Perdriau, 15s 6d. FOREIGN EXCHANGES Telegraphic rates of exchange on overseas centres yesterday are supplied by the Bank of New South Wales as follows (the first quotation being the buying one and the second the selling):—On: New York, dol. to £N.Z.> 3.2542, 3.2050; Montreal, dol. to £N.Z., 3.6039, 3.5290; France, francs to £N.Z., 142.05, 141.05; Greece, drachmae to £N.Z„ —, 412.70; Java, florins to £N.Z., 6.187, 6.004; Switzerland, francs to £N.Z„ 14.532, 14.180; Hong Kong, N.Z.’ pence to dol., 18 29-64, 18 61-64; India and Ceylon, N.Z. pence to rupee, 22 19-64, 22 45-64; Manila, N.Z. pence to peso, 36 37-64, 37 29-64; Shanghai, N.Z. pence to dol., —, 5 11-16; Singapore, N.Z. pence to dol., 34 53-64, 35 37-64.