FINANCE AND COMMERCE

Press, Volume LXXVI, Issue 23094, 9 August 1940, Page 7

FINANCE AND COMMERCE

RESERVE BANK RETURN Expansion in Note Issue DEMAND LIABILITIES TO BANKS INCREASE A further small increase in the note issue is shown in the Reserve Bank’s return as at the close of business on Monday. The amount of the note issue was £19,718,751, or £95,316 more than at the close of the previous week. State deposits were £393,415 lower at £4,762,939, but those of the banks, at £17,146,532, showed an increase of £400,166. Sterling exchange was £65.476 higher at £13,093,952. Advances to the State for marketing were lower by £245,147, but those for other purposes had increased by £250,000 to £21,880,000. The bank’s return, with changes from last week, is as follows: Liabilities—(l) General reserve fund, £1,500,000 (same): (2) Bank notes, £19,718,751 (+£95,316); (3) demand liabilities—(a) State, £4,762,939 (—£393,415); (2) banks, £17,146,532 ( + £400,166); (c) other, £162,791 (—£102,788); (4) time deposits, nil (same); (5) liabilities in currencies other than New Zealand currency, £5718 (—£2711); (6) other liabilities, (£734,826 ( + £10,235); total, £(N.Z.), 44,031,538 (+£6802). Assets—(7) Reserve: (a) Gold £2,801,840 (+£11); (b) sterling exchange, £13,092,952 ( + £65,476); (C) gold exchange, nil (same); (8) subsidiary coin, £137,666 (—£2463); (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, £3,370,927 (—£245,147); (2) for other purposes, £21,860,000 (+£250,000); (b) to other public authorities, nil (same); (c) other, nil (same); (11) Investments, £2,543,804 (same); (12) bank buildings, nil (same); (13) other assets, £224,356 (-£61,075); total £(N.Z.)44,031,558 ( + £6802). Proportion of reserve (No. 1 less No. S) to notes and other demand liabilities, 38.02 per cent. (37.856 per cent, last week). COMPANY NEWS TAUPO TOTARA TIMBER (PBES3 ISSOCIATIOH TELEG EA3I.) AUCKLAND, August 8. net profit of £10.227 was earned by the Taupo Totara Timber Company, Ltd., in the year ended April 30, against £8434 in the previous year. Tax provision was £15,015, compared with £5095 in 1939. In addition to the fixed preference dividend the directors recommend a dividend of 21 per cent, on ordinary shares. This compares with 2 per cent, in the previous year. No payment was made in 1938. QUOTATION OF MORE SHARES PERMITTED (PHESS ASSOCIATION- TELEGRAM.) WELLINGTON, August 8. The Stock Exchange Association of New Zealand has received advice from the Reserve Bank of New Zealand authorising; under the Finance Emergency Regulations No. 2. quotations of anl dealings in the following shares:— Bank of Australasia, National Bank of New Zealand. Union Bank, Dalgety and Company, Blackwater Mines, and Consolidated Goldfields. MINING COMPANIES’ REPORTS Blackwater —The Blackwater Mines return.for July is:—Crushed 4200 tons, yielding 2143 fine ounces of gold from all sources, including clean-up of old mill, the value of which, taking gold at 168s a fine ounce, was £19,001. Working expenses, not including ordinary or war gold duty, were £8935, development expenditure was £671, and capital expenditure was £2596. Review of development work carried out during the month: No. 11- level drive north advanced 10 feet on reef averaging 3dwt over 12 inches. No. 13 level drive north advanced 31 feet, of which 28 feet was on reef averaging ISdwt over 50 inches. No. 14 level drive north advanced 26 feet, of which 17 feet was on reef averaging lldwt over 18 Inches. No. 12 level winze at 3165 N. advanced 33 feet on reef averaging 9dwt over 18 inches. No. 12 level winze at 570 N. advanced 27 feet, of which 19 feet was on reef averaging SSclwt ovfer 36 inches, No 13 level winze at 1300 N. advanced nine feet on reef averaging 23dwt over 21 inches. Worksop Extended—Owing to the failure of the wooden pontoon to stand up to future dredging operations, coupled with the fact that the area of profitable ground is too limited to warrant building a new pontoon, it has been decided to close the dredge down permanently. All machinery, plant, and equipment now-on the dredge will be dismantled and removed ashore for resale, or for re-erection on a new claim if a suitable area can be secured. . Big River—Mine report for the month of July:—No. 5 winze slope: Forty-five tons of stone were produced from this slope. No. 7. level; This level was advanced 40 feet for the month. Prospecting was continued in Nos. 1, 4, and 6 levels. A total distance of 65 feet was driven and nothing of any value was met with. New Guinea , Goldfields—The directors propose to return to shareholders some of the reserves made to- cover ore depletion in the mines. Shareholders will be asked to agree that the capital of the company be reduced from £1,895,751, divided into 7,583,004 shares of 5s each, to £1,611,388. divided Into 7,583,004 shares of 4s 3d each. The directors are satisfied that the sum proposed to be dispersed, namely, £167,712, Is in excess of the company’s immediate and anticipated requirements, and cannot be profitably employed. It is not expected that the distribution will be made before January next, as some months will be required to complete legal formalities. Wellington Alluvials—Wellington Alluvials, Ltd., New South Wales, reports that during the four weeks ended July 20 the dredge worked 412 hours, handling 230.000 cubic yards of material, and recovered bullion estimated to contain 759 ounces of fine gold. During the period mechanical delays totalling 201 hours occurred, including 140 hours on the bucket ladder suspension. "Wellington Alluvials, Ltd, now has a small credit balance,” Sir Walter G. Duncan told shareholders at the annual meeting held in Melbourn, "Though the company has made a good profit, payment of a dividend will have to stand over till we have sufficient funds In hand for that purpose. Your directors’ chief object has been to discharge liabilities. Now that that point has been reached, it is hoped that the greater part of future profit Will be available for dividend purposes," he said. Sir Walter Duncan added that tire life of the company's property was estimated at between 21 and 35 years. The new bucket, line was standing up well to Its work, and gave every indication of having a satisfactory life. Mossy Creek—Wash-up yesterday: 82oz 16dwt in 130J hours from 8384 yards. Grey River—The return this week was 131.5‘-ounces from 100,706 yards in 131 Hours 55 minutes. The return for the month of July was 1074.35 ounces secured from 423.126 yards in 583 hours 15 minutes Rimu Flat—The Rlmu Flat dredge did not wash up this week. The return for the month of July was 554 ounces from 171,221 yards. ■ SYDNEY PRODUCE MARKETS (tMITED eats* ASSOCIAHOS—COPVRIGHT.) (Received August 8, 11.20 p.m.) f SYDNEY, August 8. The Sydney wheat market is very dull. Silo grain is quoted at 3s lljd and bagged at 4s 2id. Other quotations are:—Flour. £l2 10s; bran and pollard, £5 10s; potatoes, Tasmanian! Brownells £l2, others £ll, New Zealand whlteskins £11: onions, Victorian brown £10; maize, new yellow M W* »hj|«-B*-

STOCK EXCHANGE BUSINESS MARKETS REMAIN FIRM BROKEN HILLS SELL AT UNCHANGED PRICE Although share markets were again firm yesterday, they were quiet, the day’s business consisting of three reported sales. Price levels generally were well maintained. / ' Buyers of Canterbury Frozen Meat raised their bids to £9 15s 6d, but sellers were reticent. Christchurch Gas were firm at 245, and late offers of 23s 6d failed to attract sellers. Unsupported sellers of New Zealand Breweries reduced their limits to 33s 3d. Broken Hill Proprietary , remained unaltered at 425, and more were offered at that price, buyers at 40s 6d. Sellers,of New Zealand Drug reduced their, limits to 82s fid, Woolworths (N.Z.) advanced to 15s 2d, and there were further buyers at 15s. Sales Reported—lso Christchurch Gas, 245; 100 Broken Hill Proprietary, 425; 100 Woolworths (N.Z.), 15s 2d. LATEST QUOTATIONS N.Z. Govt. Debentures—3 p.c. Ins., 1941 s. £99; 4 p.c. Ins., 1940-43, b. £lOl 10s: 4 p.c. Ins.. 1943-46, b. £lO3 15s; 4 p.c. Ins., 30/11/48, b. £103; 4 p.c. Ins., 1949-52, b, £104; 4 p.c. Ins., 1952-55, b. £lO4 10s; 4 p.c. Ins.. 1954-58, b. £lO4 ss; 4 p.c. Bonds, 1946, b. £lO3 15s; Rural Bonds, 5 p.c., 15/9/47, b. £lO3 ss, Other Debentures—Auckland Gas, 5 p.c. Perpetual, b. £100; Gisborne Sheep., 61 p.c., 31/8/41. b. £IOO 10s. Banks—Australasia, s. £lO 10s; Comm of Aust. (ex div.), b. 12s 6d; Comm, of Sydney (ex div.), b. £l7, s. £2O; Natl, of N.Z., b. £1 16s 6d. s. £1 IBs; N.S.W. (cum div.), b. £25; N.Z,, b, £1 19s 9d, s. £2 0s 6d; Union of Aust., S. £7 ss. Insurance—Standard, b. £2 15s 6d. Loan and Agency—N.Z. Loan and Merc, (ord. stock), s. £37 15s; United Building, b. £1 Os 3d, s. £1 Is; Wright, Stephenson (pref.), b. 19s lOd. Frozen Meat—Canty., b. £9 15s 6dCanty (p r ef,), b. £6 5s 6d; N.Z. Refrig. (£1 paid), s. £1; N.Z. Refrig. (10s paid), b. 8s 7d, s. 8s lid; Southland, b. £1 11s 6d. Woollens—Bonds Hosiery, b. £1 ss; Felt and Textiles, b. £1 14s; Kaiapol ,(17s paid), b. 14S; Kaiapol (7s paid), b. Ss 6d. s. 4s 8d; Mosgiel, b. £lO Is. Coal—Westport, s. £1 2s 6d; WestportStoekton, b. 2s, s. 2s 6d. Gas—Auckland (IDs paid) (fully paid), b. Bs, s. 8s 6d; Christchurch, b. £1 3s 6d; Christchurch (10s paid), b. 11s, s. 13s: Napier (£5 paid), s. £5. Breweries—BaUins (15s paid), b. 11s 6d, s. 13s 6d; N.Z., s. £1 13s 3d; Tooths, s. £2 17s; Ward (in liqdn.), ,s. Is 6d, Miscellaneous—Booth. Mac. (pref.), s. 2s 3d; Broken Hill Pty., b. £2 0s 6d, s. £2 2s; C.F.C.A., b. 8s; Doin. Fertiliser, b. £1 6s 3d; D.I.C. (10s paid), b. 11s 9d; p.I.C. (pref.), b. £1 2s 9d; Electro. Zinc (pref.), b. £2 7s 6d; Hay's, Ltd. (con.), b. 16s 9d. s, 18s 6d: Mason, Struthers, s. 15s; Mason, Struthers <( 14s paid), s. 10s; Morts Dock, s. 19s; Macduffs. b. 6s 4d; Macduffs (pref.), s. 15s; Natl. Electric, s. 18s 6d; N.Z. Drug, s. £4 2s 6d; N.Z. Farmers (A pref.), s. £2; N.Z. Farmers (4J p.c. Stock. 1950). s. £81; N.Z. Farmers (4i p.c. Stock. 1955), s. £81; N.Z. Newspapers, b. £1 9s, s, £1 12s 6d; N.Z. Paper Mills, b. £1 8s 6d; Quill, Morris (1936), b. 18s 3d, s. £1; Taranaki Oilfields, b. ss, s. 7s 3d; Taranaki Oil Development (3s 6d paid), s. 3s 6cl; United Provisions, s. 7s 9d; Urlwins (pref.), b. £1 3s; Whitcombe and Tombs, s. £3 7s 6d; Woolworths (Syd.) (ord.), b. 15s 9d. s. 16s 6d; Woolworths (N.Z.), b. 15s; Woolworths (N.Z.) (pref.), b. £1 14s, s. £2.’ Overseas Listing—Woolworths (S.A.), s. 16s, Australian Mining—Broken Hill South, s. £1 6s; Mt. Lyell, b. £1 3s, s. £1 6s 6d; Mt. Morgan, b. 7s, s. 8s 6d; New Broken Hill, b. 13s. N.Z. Mining—Addison’s Fiat, b. Is. s. Is 6d; Argo, b. 6d, s. ,9d; Big River, b. Rd; Golden Sands, s. lid; Grey River, b. 13s 9d, s. 15s lOd; New River, b. 3d, s. sd; Worksop, b. ijd.'s. Sd. Unlisted Stocks—Assoc. Gold Dredges (8s paid), s. 8s 3d; Assoc. Mot. Pet. (pref.), s. £1 6s; Blackball Creek, b. 63d; Christchurch Frees, b. £6 10s, s. £7 ids; Brunner Collieries, s. 14s; Lange's Mobile Gas, s. IDs; Canty, Roller Flour, b. 6s; Mikonul, s. 3s; St. Elmo Courts, 6 p.c. pref,. s. 18s 6d; Reece, Ltd. E. (pref.), b. 2s 6d: Whakatane Paper Mills, s. 3s; White's Electric, s. Id; Winchester Lime, s. 15s. AUCKLAND Sales—Anial. Brick (Auckland), 1/3/44, G p.c., £lO2 (late sale); Amal. Brick (Wellington). 31/3/44, 6 p.c,, £lOl 10S (late sale); Bank of N.Z., 40s, 40s 3d; Westport Coal, 22s 3d (odd lot) (late sale); Auckland Gas (con.), 3s (odd lot); Dom. Breweries, 29s 9d (late sale), 30s: Broken Hill Pty., 41s: Wilson’s Cement, 17s lOd. WELLINGTON Sales—Amalg. Brick (Wellington), 6 p.c., 31/3/44, £lOl 10s; Westport Coal, 22s 3d. DUNEDIN Sales Reported—4i p.c, Wanganui City debs., Nov., 1962, £lO4 10s; WestportStockton (ord.), 2s 3d. SYDNEY The Sydney Stock Exchange was inactive yesterday, with a slightly weaker trend. Sales—Commercial Bank of Sydney, £l6 13s; Australian General Insurance, 14s 6d; British Tobacco. 445; Standard Cement, 19s; Taubmans, 455; United Provisions, 7s; Nestles (pref.), 29s 9d,‘ Broken Hill Pty,, 40s; Rawang Tin, 7s 2d; Emperor, 9s 9d. MELBOURNE Sales—Felt and Textiles, 345; G. J. Coles, 60s; Loloma, 21s. LONDON Clutha River Company, buyers Gd, sellers 83d; Moiyneux River Company, buyers lid, sellers 3d. FOREIGN EXCHANGE Telegraphic rates of exchange on overseas centres yesterday are supplied by the Bank of New South Wales as follows (tiio first quotation being the buying One and the second the selling):—On: New York, dol. to £1 N.Z.. 3.2542, 3.2050: Montreal, dol to £1 N.Z., 3.6039, 3.5290; Greece drachmae to £1 N.Z., —, 412.70; Java, florins to £1 N.Z., 6.187, 6.004; Hong Kong, N.Z. pence to dol.. 183,19 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 31-64: Singapore, N.Z. pence to dol., 34 53-64, 35 37-64. * NORTH ISLAND OIL SEARCH PROGRESS AT MORERE AND MIDHIRST iPBJEss lasocuno* rELEoaui.) GISBORNE, August 7. The New Zealand Petr ,leum Company reports that the Morere well is at 4108 feet The formation is hard, green shale. At Midhirst, drilling is resumed and the depth is now 1210 feet, in sandy shale.,