FINANCE AND COMMERCE

Press, Volume LXXVI, Issue 23132, 23 September 1940, Page 5

FINANCE AND COMMERCE

RESERVE BANK RETURN

STERLING EXCHANGE

HIGHER

MARKETING ADVANCES INCREASE Changes in the returns of the Reserve Bank of New Zealand last week include a rise of £460,756 in sterling exchange, following falls in recent weeks. Total sterling funds now held by the Reserve Bank are again more than £10,000,000. Advances to the State have increased by £2B 277 to the Marketing Department and by £500,000 for other purposes. On the liabilities side, liabilities in currencies other than New Zealand currency have increased by £622,609 to £034,609. Variations in demand liabilities show a substantial increase in State deposits but a drop in those of the banks.

The bank’s return, with changes from the previous week in parenthesis, is as follows:

Liabilities— (l) General reserve fund, £1,500.000 (same)’, (2) bank notes, £2O 028,497 ( i £29,867); (3) demand liabilities—(a) State, £5.535,410 ( + £750,833): (b) banks, £14,516,298 (-£259,150); (c) other, £159,922 ( posits. nil (same); (5) liabilities in currencies other than New Zealand currency, £634.609 ( + £622,609); (6) other liabilities, £832,917 (£-20,796); total, £ (N.Z.)43,207,653 ( + £988,836). Assets —(7) Reserve: (a) Gold 02,801,852 (same); (b) sterling exchange, £10,217,038 ( + £460,7561; (c) gold exchange. nil (same); (8) subsidiary coin, £113,572 (•-£776); (91 discounts: (a) commercial and agricultural bills, nil (same); (b) Treasury and local body bills, nil (same); (10) advances; (a I to the State or State undertakings, (1) Marketing Department. £3,247,788 ( + £28,277); (2) For other purposes, £24,040,00(1 ( + £500,0001 (b) toother public authorities, nil (same): (c) other, nil (same); (11) investments, £2,553.220 I + £20.000); (12) bank buildings, nil (same): (13) other assets, £234,183 ( ( + £988,836).

Proportion of reserve to miles and other demand liabilities, 30.776 per cent. (31.486 per cent, last week).

GROCERY TRADE

PRICES AND PROSPECTS

The recent fine weather has benefited the city retail grocery stores, and turnover last week was very satisfactory. Inquiries are now being made from wholesalers for summer lines and this section of the trade appears to be in for substantial turnover within the next few months. The restrictions imposed on impoits are still being severely felt by importing houses, but the position has been relieved to a certain extent by the readiness of the public to accept Dominion made goods where these ate available in substitution for lines previously imported.

Caustic Soda

A shipment of caustic soda 1 s and 2’s lias recently arrived from England, and the landed costs compared very favourably with the Dominionpacked caustic. It is understood that shipments of caustic soda can now be made by British packers to New Zealand. ’ . _ „ Tapioca and Sago Advices by cablegram disclose a firm market for sago and tapioca in the Straits Settlement. Although lower than they have been, values are still fairly high. Fruit Juices The popularity of fruit juices is increasing every year, and to assist this industry the Commonwealth Government has agreed to renew the subsidy payable to packers. A subsidy has been paid for the last two years, and this is to be continued for another year, after which the position will again be reviewed. Rice The market for rice in both Rangoon and Siam has firmed, and any orders placed now will Isnd at a considerable increase in price compared with present stocks. Eggs During last week many city stores were able to purchase fiesh eggs direct from farmers, paying the following prices: Firsts Is 3d, seconds Is 2d. ducks Is 2d net, free of. commission. The supply was heavy, and demand good. Preservers and pulpeis were operating freely, and prices look like remaining firm. Salt Fair supplies of salt are now available as a fairly large shipment has recently landed. Twine It is now almost impossible to get hemp twine from overseas, and cotton twine is dear at the port of dispatch. The local stocks of jute twine have been able to take care of the demand,, but pending replenishment from the North Island producers, stocks are on the low side. Pineapple Queensland canned pineapple is now being quoted f.0.b., Brisbane, at favourable prices for both sizes, 30oz and 16oz. This is the winter pack, and prices are accordingly higher than last summer’s pack by is 2d a dozen for 30oz and 3d a dozen for 16oz. Recent quotations by cablegram from Singapore .show that the tinned pineapple market there is very firm. The popular 3£3b size is now approximately double the price it was before the war, and other sizes are equally dearer. The next arrival of pines from Singapore will, it is expected, bring stocks required for the Christmas trade. Pineapple will land at a fairly high figure. War risk insurance from Singapore to New Zealand is low, only 2 per cent., but this, nevertheless, adds to landed costs. Nutmegs and Mace • A cheap quotation for nutmegs has been issued from Singapore and a very favourable price is now available there for mace. Both these lines are now reasonably priced, f.0.b., but exchange, freight, and landing charges will build up the costs on arrival toward 50 percent. on f.o.b. value.

COMPANY NEWS

BEATH’S PROFIT

INCREASES

HEAVIER PROVISION FOE

TAXATION

Beath and Company’s gross profit in the year ended August 19, 1940, was £106,864, an increase -of £ 8857 on the figure for the previous year, £98,007. A sharp increase in taxation provision, however, from £10,29J to £15,177, absorbed most of the rise. Net profit was £7815 against £6406 last year, an increase of £1409. Dividend recommendation is unaltered at 5 per cent, per annum on both ordinary and preference shares. The amount available for appropriation is £17,634. The final dividend absorbs £3o47,leaymg £14,086 to be carried forward, against £12,866 brought in. The company is paying both the social and national security taxes this year, but the directors say the payment is not to be regarded as a precedent. . . Sales were again well maintained m spile of a most difficult trading year. The company's liability on mortgage ' had been reduced from £94,311 to j £80.099, and the whole amount was, now owing in New Zealand. Balance-sheet items are as follows, with last year’s shown in paixmlhesis: Liabilities—Paid capital. £182.166 (same); general reserve, £20,000 (same); profit and loss, £17,634 (£15,915); mortgage on freehold property £BO,OOO t £94,311); National Bank,’ £41,227 (£55,342); creditors and lax provision. £59.331 (£45,570). lotal £400,358 (£413,304). r , nll Assets—Land and buildings, £211,106 (£213.057); plant and fittings, £43,807 (£48,103); stock, £115,082 (£117,154); debtors (less reserve £5323), £27,437 t£33,117); cash, £426 (£373); shares in other companies, £2500 (£1500). Tola!, £400,358 (£413,304). Profit and loss—Salaries and administration, £83,287 (£80.717); tax provision, £15,177 (£10.299); net profit, £7815 (£6406); gross profit, £106,864 (£98,007). JOHN BURNS At the annual general meeting of shareholders of John Burns and Company, Ltd., Mr Arthur Giltos Cooke, who has been associated with the company for 51 years, during 26 of which he has been a director, retired from the board. A resolution placing on record appreciation of the services rendered fb the copmany by Mr Cooke and extending to him the best wishes of the shareholders in his retirement was passed unanimously. The position on the board vacated by Mr Cooke has been filled by the election of Mr Edward Hammond, manager of the Christchurch branch of the company. GERALDINE DAIRY The twenty-second annual report of the Geraldine Dairy Company, Ltd., states that the estimated average payout per lb for butter-fat (all grades) was 18,25 d. The actual payout which was finally made was 18.25 d. In respect of the current year the valuation basis adopted for cheese on hand at balance dale was 9d .per lb and the estimated season average payout per lb for butter-fat (ail grades), which should result from the disposal of all unsold cheese at the values adopted, should be 18d. The directors recommend a dividend of 5 per cent, on paid-up capital. Statistics are as follows, the figures for 1939 being given in parenthesis:— Payout per lb butter-fat, 18d (18.25 d); number of suppliers, 20 (20); pounds of milk received, 1,476.799 (1,560,518); pounds of butter-fat from milk, 51*809.76 (60,740.64); average test of milk. 3.9145 (3.8923); total charges, including repairs and depreciation, up to f.o.b. at per lb butter-fat, 4.743 d (4.613 d). Cheese making (1939 figures in parenthesis); Pounds of milk received over stage (no deduction for loss of whey), 57,809.76 (60,740.64); average butter-fat test of milk, 3.9145 (3.8923); pounds of cheese (factory packing weights), 150,266 (161,704); pounds of milk to make 11b cheese. 9.8279 (9.6504); average grade of cheese, 92.5103 (92.252); milk grading percentages (first), 97.0310 (97.5279), second, 2.9690 (2.4721). Whey butter—pounds of butter-fat recovered from whey expressed as a percentage of total butter-fat received for cheese making. 6.5139 (6.5143). The manufacturing and marketing account showed that £4432 18s 7d had been advanced to suppliers and manufacturing charges, which included repairs and maintenance and transport costs, totalled £907 10s 4d. The administration charges were £224 5s lid, leaving a credit to the appropriation account of £337 10s 2d. The income from all sales amounted to £5492 7s 2d, TAKAMATUA DAIRY Reviewing the season at the annual meeting of tbe Takaxnatua Co-opera-tive Dairy Company, the chairman , irtr H. Odell, said there had been a drop of 10 tons in output owing to the late spring and dry autumn. This had increased the cost of manufacture, but with the extra supply this year, which would be well over 50 tons, the return for suppliers would increase very considerably. The whey separating plant recently installed should pay handsomely. It was reported that the separated whey meant about per lb butter-fat in pay-out at the end of the season. The separated whey was used by all the suppliers at the factories where whey was separated and pigs did well on it. The chairman said the separating machinery and gear had cost about £3O, which was very reasonable. The directors’ report and balancesheet were adopted. Messrs W. E. Brown, J. Hewitt, and J. G. Hammond were elected to the directorate to fill the three vacancies. At a meeting of directors afterward Mr Odell was re-elected chairman.

LONDON PRODUCE PRICES

LONDON, September 21. Friday’s closing prices were:—Cotton. spot 8.40 d per lb; October 7.83 d; rubber, para, I2d per lb, plantation smoked ll£d; linseed oil £44 a ton; turpentine 44s per cwt.

DREDGING AND MINING

Argo—There was no wash-up at the Argo dredge last week, operations being suspended for the week for repairs to the dredge. It is expected to recommence digging to-day. Golden Sands—Return of 50oz lodwl from 87 shifts.

FOREIGN EXCHANGE

Telegraphic rates of exchange on overseas centres on Saturday 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 EN.Z.. 6,187, 6.004; Hong Kong, N.Z. pence to dol ISA, 19; India and Ceylon, N.Z. pence to rupee, 22 19-64. 22 45-64: Shanghai, N.Z, pence to dol., —. 5 3-32; Singapore. N.Z. pence to dol., 34 53-64, 35 37-64; Manila, pesos to £N.Z., 6,559, 6.442.