FINANCE AND COMMERCE

Press, Volume LXXVI, Issue 23088, 2 August 1940, Page 7

FINANCE AND COMMERCE

RESERVE BANK RETURN

STOCK EXCHANGE business'

. Sterling Exchange Higher FURTHER RISE IN NOTE ISSUE Sterling exchange held by the Reserve Sank at the close of business on Monday was £13,027,476, or £86,291 more than in the previous week. Advances to the State lor marketing were £356,209. lower at £3,616,074, but those, for other purposes Were £IOO,OOO higher at £21,600,000. The note issue, at £19.623,435, showed a further expansion of £131,0,73. Demand liabilities to the State (had decreased by £285.137 to £5,156,356, but those to the banks had risen by £140,448 to £16,746.366. There was a rise .in other demand liabili-. ties 0Ut8'85,294. The bank’s return, with changes from last week - in parenthesis, is as follows: ’ Liabilities—(l) General reserve fund, £1.500,#00; (same); (2) Bank notes, 1 buities+-(a) State, £ 5.156,354 ( £285,137); (W banks. £16,746.366 ( + £140,448); (c) : «&er,T£265,579 (+ £65,294); (4) time degdts, nil (same); (5) liabilities ‘in cur'*S?y other than New Zealand currency, F- * : 2SSP <*— d£708); (6) other liabilities, ASS' s * l •( £ 142.021) ; - total. £(N.Z.) 44.024,756 (-£91,051). «/Assets—(7) Reserve: (a) Gold £2,801,840 (same);:(b) sterling exchange, £13.027,476 (+£88,291); (c) gold exchange, nil (same); (8) subsidiary ■ coin. £140,129 (—£13,977); (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, £3,616,074 ( Purposes. £21,610,000 ( + £100.000); (o) to other public authorities, nil (same); •jp*.other,: nil (same); (11) Investments, £2,543,804 (same); (12) bank - buildings. (same); (13) other assets. £285.431 ( + £92,843); total, £(N.Z. >44,024.756 ,(-£91,031). Proportion of reserve- (No. 7 less. No. notes and other demand liabilities. Week) per cent - * 37- ® }s P er cent - last

NO SALES RECORDED YESTERDAY , SEVERAL BUYING OFFERS SHOW IMPROVEMENT No sales were either made or reported on the Christchurch Stock Exchange yesterday. Markets, however, continued firm. Government loans had steady inquiry at firming rates, and there was moderate inquiry in other sections of the market. Better buying offers were submitted for Ballins Breweries (15s paid), Bonds Hosiery, Dominion Fertiliser, Macduffs preference, Quill, Morris (1836) and Wilson’s Cement. Buyers of New Zealand Drugs (cum rights) offered 80s, but sellers were at 85s. LATEST QUOTATIONS N.Z. Govt. Debentures —3 p.c. Ins.. 1941, b. £9B 10s, s. £99 10s; 31 p.c. Ins.. 1953-57, s. £99; 4 p.c. Ins., 1943-46, b. £lO3 10s; 4 p.c. Ins., 1949-52, b. £lO3 15s; 4 p.c. Ins., 1952-55, b. £lO3 17s 6d; 4 p.c. Ins., 1954-58, b. £104; 4 p.c. Bonds, 1946, b. £lO3 10s; 4 p.c. Bonds, 1955, £lO3 12s 6d; Rural Bonds, 5 p.c., 15/9/47, b. £lO3. : other Debentures-r-Auckland Gas, 5 p.c. Perpetual, b. £100; Majestic Theatre (In’gill), 5 p.c., 20/3/52, s. £IOO. 1 Banks —Natl, of N.Z., b, £1 16s 3d; N.Z., b. £2 Os Id, s. £2 0s 9d; Union of Aust., s. £7 4s. ' Insurance —Natl. b. 17s Bd, s. 18s 6d. Loan and Agency—N.Z. Guar. Corpn., b 2s lid. s 3s 4d; N.Z, Loan and Merc, (ord. -stock), s .£39; United Building, b. £l. s. £1 Is; Wright, Stephenson, b. 19s 9d. Frozen Meat—N.Z. Refrig. (10s pd.), b. 8s 7d, s.-9s; Southland, b. £1 11s 3d. ' Woollens —Bonds Hosiery,- b. £1 4s 6d; Kaiapoi (17s pd.), b. 14s, s. 14s 8d; Kaiapoi (7s pd.), b. 3s 6d. s. ss; Kaiapoi (pref.). s. 18s; Mosgiel, b. £10; Timaru, b. 9s 6d. . Coal— Westport, s. £1 2s 6d; WestportStockton, b. 2s, s. 2s 6d; Westport-Stock-ton (pref.), b. 4s. . . Gas—Auckland (10s pd.) (fully pd.), s. 8s 6d; Christchurch/ - s. £1 4s 6d; Christchurch (10s pd.) b. 10s 6d. Breweries —Ballins (15s pd.), b, 11s, s. 12s 6d; Dominion, b. £1 18s; Dunedin, s. £1 8s; N.Z., s. £l* 13s 3d; Ward (in liqdn.), s. Is 6d; Sunshine, b. ss. , Miscellaneous— Alloy Steel (N.Z.I/s. £1 17s: Andersons (Ist pref.), s. 18s 9d; Berlei (NZ), b. £2 15s, s. £3 ss; Booth, Mac. (pref.), b. 2s 3d; Cons. Brick, s. 8s; C.F.C.A., b. 8s; Dom. Builders, s. 6s; Dom. Fertiliser, b. £1 6s; Dom. Rubber, s. £1 ss; D.X.C. (pref.). b. £1 2s 9d: Greater Crystal, b. 12s 6d; Hay’s. Ltd., b. £1 Is; Hay’s, Ltd. (contr.). b. 17s, s. 18s; Kam, R. G., b. 4s 3d, s. 11s 9d; Ka(n, R. G. (pf.). s. 15s; Mason, Struthers, s. 15s; Mason, Struthers (14s pd.),- s. 10s; Mason. Struthers (10s pd.), s. 6s; ,Milburn Lime, b. £1 17s; Macduffs, b. 6s; Macduffs (pref.), b. 14s 9d, s. 15s 2d; McKenzies, b. £1 19s 9d. s. £2 Is; Natl. Electric, b. 17s, s. £1; N.Z. Drug, s. £4 ss; N.Z. Farmers (A pref.), s £1 8s 2d; N.Z. Farmers’ (41 p.c. Stock. 1955, ex int.), s. £Bl 10s: N.Z. Newspapers, b £1 8s 6d. s. £1 12s 6d; N.Z. Paper Mills, b £1 7s 6d; North. Roller Milling (pret.). b' 19s 6d: Quill. Morris (1936), b. 18s 3d. s.' £X;'Urlwins (pref.), b. £1 2s; Tingey, R. and E. (pref.), b. 19s 6d; Wilson’s Cement, b. 17s Bd,/s. 18s 3d; Woolworths (N.Z,). b ‘N.Z.‘ Mining—Addison’s Flat, b. IS: Alexander. s. 8s 6d: Austral (N.Z.), b. £1 3s 3d. s £1 10s; Big River, b. 6d: Golden Dawn, s. Is; Oolden Sands. s.*lld;.Grey River,.b. • 14s Id;; Maori Gold. 6d; Nemona. s. sa: Mossy Creek (cum div.), s. is 2d; New River, b. 3Jd, s. sid; .Okarito, s. Is: . Mining House Concessions, s. lid; Skippers, Ltd., s. Jd: Waihi Investments, s. 7s 6d: Worksop, b, 2d. s. 4Jd. Unlisted Stocks—Assoc. .Gold Dredges (8s nd.).,s. 8s 3d: Assoc. Mot. Pet. (pref.), s. £1 6s; Blackball Creek, s. 8d: Christchurch Press/ b; £6 10s: Brunner Collieries,- s - . 15s; Lange’s Mobile Gas, s. 10s 6d: Canty. Roller Flour, b. ss; R.U.R. (N.Z.). s. £4; South Seas Fishing, s. 13s; St. Elmo Courts. (6 p.c. pref.}, s. IBs 6d; Whites Electric, s. Id.

AUCKLAND Sales—N.Z. Govt. Bonds, 15/4/46-49, 4 p.c., £lO4 (late sale): N.Z. Govt. Stock. 4 p.c., 15/2/43-46, £lO3 5s (late sale): N.Z. Govt. Stock, 4 p.c., 15/4/46-49, £104; Nat. Bank of New Zealand, 375; N.Z. Insurance, 58s 3d; Dominion Breweries, 29s 6d (late sale); N.Z. Breweries, 335; Reid Rubber (rights), 4s Id; Wilson’s Cement, 18s; Woolworths (N.Z.), 14s 9d (late sale); Waihi Investments, 4s 9d (late sale). WELLINGTON, Sales—Pukekohe Borough, 41 per cent., 2/6/1957-60, £lO3 10s; McKenzies Stores. 40s. DUNEDIN Sales Reported—N.Z. Govt. Stock, 4 p.c., 1946-59, £104; Macduffs (ord.), 6s 6d; N.Z. Breweries, 33s 3d (late Wed.). SYDNEY With sellers showing more disposition to meet the market, an easier tone prevailed on the Sydney Stock Exchange yesterday. Banks, however, were neglected. Morning Sales—Tooheys. 275; Tooths, 47s 6d; Associated Newspapers (pref.), .14s 6d; Anthony Hordern, 11s 7d; Broken Hill Pty., 41s 9d; Burns, Philp (South Sea), 20s Sales—Colonial Sugar, £47 2s 6d; United Insurance, £8 10s; Burns, Philp. 50s; Woolworths, 15s; Dunlop Perdriau, 17s; Aust. Consolidated Industries, 335; Aust. Consolidated Industries (cont.). 14s 6d: Sargents 24s 6d; Goldsbrough, Mort, 23s 6d; Mount Lyell, 25s 6d; Emperor, 9s 9d. MELBOURNE Sales—Carlton Brewery, 60s: United Provisions, 7s 4d; Loloma, 21s Id. FOREIGN EXCHAN GES 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; Greece, drachmae to £N.Z., —, 412.70: Java, florins to £N.Z., 6.187, 6.004; Hqng Kong. N.Z. pence to dol., 181. J 9 1-32; 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 9-16; Singapore, N.Z - pence to dol., 34 53-64, 35 37-64. 4 MINING COMPANIES’ REPORTS Grey River—Return, this week; 145.80z from 103,003 yards in 132 hours 55 minutes. Blackball Creek—The directors’ third report for .the year ending May 31, to be presented to the annual meeting on August 22, says, that the operations for the year resulted in a profit of £6659 16s 3d, against £8659 10s 3d for the corresponding period of last year, notwithstanding that the value of gold won during the year exceeded by £228 the value of gold won during the preceding year. The reduced profit was to a great extent accounted for by additional expenditure of £554 for wages and £1179 for gold duty, compared with the expenditure under those headings for the previous year. The excess gold duty imposed by the Customs Amendment Act, 1939, amounted to onehalf the total gold .duty paid during the year. As this excess duty applied during eight months only of the year it would be apparent that this duty would be still more burdensome in subsequent years. The company would also pay in respect of dividends paid during the year a sum of approximately £740 by way of income tax. After making provision for such tax, the balance to the credit of the profit and loss account at the end of the year was £6558 7s 10d- Since the close of the year the company had paid off the loan account £2OOO. Though, expenditure under maintenance and repairs exceeded by/£B4B such .expenditure last year, stocks t of spares and tools had increased by £llO6. The directors had maintained the policy of keeping the company's dredge In efficient condition and had retained ample reserves to. meet contingencies. Some three months ago an order was placeA in Australia lor the manufacture of a bucket ladder, bottom tumbler to ensure that dredging operations would not be suspended by a breakage of the existing tumbler, which is not in £ood condition. Advice had been received that the new tumbler had been completed and-shipped to New Zealand. . . .. Ngahere—The Ngaherc return • for the month of July. 1940, is 6940z for 302,780 yards, worked in 577 hours. ■ - Mossy Creek —78 ounces in 130 hours from 10,129 yards.

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INVESTMENTS OVERSEAS

EXEMPTIONS UNDER REGULATIONS RESUMPTION OP TRADING ON MONDAY (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, August 1. The president of the Stock Exchange Association of New Zealand, Mr Andrew Hamilton, when asked if the exemptions under the Finance Emergency Regulations No. 2, as published on Tuesday, had any relationship to the representations which his association had been making to the governor of the Reserve Bank since the regulations were announced, advised that these were the bulk of what had been asked for on behalf of investors. Holders of overseas securities were now in almost the same position for trading as tpey were before the No. 2 regulations came into force. Transactions will again be permitted as from Monday next between New Zealand residents in New Zealand markets. Shareholders here are also permitted to send scrip to Australia for sale there provided the proceeds are remitted to the Reserve Bank. Facilities now exist for the repatriation of such funds subject to further examination from time to time. The only form of trading previously permitted under the. No. 1 Regulations, but not mow granted under the No. 2 Regulations, was a change from one form of overseas investment to another in the Australian market. Where a shareholder has an Australian investment which he has reason to doubt and it is not saleable here, he was allowed previously to sell it in Australia and with the proceeds buy another investment, bringing the new scrip back here; Now, if his first investment is not good enough, he may sell it in Australia and bring his money back or risk holding those shares which he feels might come down further. It was difficult to see the reason for this restriction, as the result might well be a progressive diminution of our overseas assets and a further increase in the repatriation of funds to this country, which might in turn lead to a discontinuance of the present arrangement under which the proceeds of sales can be brought back. The' association was still negotiating with the. Reserve Bank for a simpler form of advice from the broker before carrying out his client’s instructions to sell, and it was hoped that the result of further suggestions would be known before the end of the week. ... In the meantime, holders of overseas shares were advised to send in their forms as quickly, as possible if they had not already done so, and thus place themselves in the position of being able to deal with their securities when the market opens' again next week.

SHARE MARKET INDICES k New York Dow-Johes's averages (1926 equals: 100) turnover on the New York Stock .bchange are as follows;—. > 20 rail- 30 Shares , ' roads. industrials. sold. WJ 1 .. 25.70 121.12 270,000 ;*Uly 11 .. 26.07 121.58 20 .. 26.26 121.87 330.000 110,000 'Wf 29 ., 2658 123.15 M0.000 Sy.30 .. 27.09 125.97 670,000 •sy 31 . ... 2652 126.14 . 560.000 •:.l?OUil*strials r Highest Izi 1S39, 151 (Seplowest. 121,4 < April 8}. ‘High1940, 152.80 (January 3); ; -«tl3 (May 21). lowest. |" • V ■ London §ii§0£k indices/- compiled by the 1 are .(October 15. 1926, , Govt. . Home. Xndus- . sec’ties- - rails, trials.' 107.1 33.8 69.4 ‘ IRnsW. .. 108.7 • ;■ 35.8 . 72,2 . 108.8 405- 745 109.1 40.3 75.8 Mi&lOa;.. 109.1 39.2 745 mmm.* 109.1 295 74.7 Tinanequals Goto mines. 137.0 136.8 150.6 151.8 147.3 184.1