COMMERCIAL

Press, Volume LXXXVII, Issue 26516, 3 September 1951, Page 11

COMMERCIAL

. STOCK EXCHANGES WEEK’S TRANSACTIONS REVIEWED (By Our Commercial Editor.) „.®P Bk ?® ss was not well spread on the Christchurch Stock Exchange during last week, and turnover was nothing to enS™ 8 * over. The only Australian shares dealt in were chain stores. Christchurch companies’ accounts which became available during the week were those of Mason, Struthers, E. Reece, and Kaiapoi woollens. All showed improved results. The increased tempo of electioneering 'Y as 2?° d ? u , bt responsible for the week’s pa »jcity of business. .„„ he Australian exchanges, in spite of Prices, struck a slightly firmer P°.t® at the close of the week. InCiden- ; a *,Y’_ wh /, le ln the previous week the Australian Commonwealth bond yield was iJ*„, p ®. r cent., last week it was. moving aa rru towards a 3% per cent, yield. The turnover in Christchurch at 7538 S! a F,P 8 was I? 10 up on the tally for the £r V A? US w ®? k ’ Details, with the figures for the previous week in parenthesis, are _J° Government securities, £10,625 (£6280); breweries. 200 (400); ga? I’2m 1 ’2m» U rn?i < ? )); i frozen meat ’ 100 ,500): gas, 200 (nil); insurance, 100 ( 200); loan and af ? 6ncy ' 225 (nil): shipping, 200 (nil); miscellaneous. 4813 ( 4968); unlisted, 1700

recurities, representing the brightest feature of the week’s trading, had a good turnover. H? s * l pr ®.?® r ® nceB had the only busi”h? 8 "> th® breweries section when they 23s g &>vor nd r S a M the i m P r °ved price of ers for New Zealands improved m.v^~ 0f 7 rs 498 6d - Th® l -® were firm Week” *° r Dom l n i o h s throughout the ?^ land Refrigerating contributing H? a res ld unaltered at 19s. C.F.M. orda. Uttl ® easier, and New “f? a " d JiH frl F era J: lng P aids lacked suppo£i'.a 8 S id also Southlands. thiirmS U i Ch i ? as , contributings had. to sell" at 9s 1 buslness for some time -Jl® 1?- Urance section was again quiet. WMch °^ e H Sale - that ° f South British, which sold 6d down at £6 3s 6d. Zealand Farmers’ Co-operative A redfww? C nriJ^ er j a £» v ® in business at the , pidc ® £S, and the company’s £B* <s? ref ™ nces ad vanced to dealings at 5“ / company’s secured deposit Irfth. fi £^ d *2 sales at £ lO3. The rest altawlJrt eSIL’K? a 6®ncy section was little altered from the previous week, sen a? n OT? e «H m preferences lost ground to Ifew 7»uS «J* tt 1 er prlces obtained for r^*5 eala ? d Shipping preferences. New v-.T^S® Uan J; ous section Woolworths to «« ordinary shares continued sales »t’ 9a? d Krf aft »T r business at 30s, had S!®?_ Bd ' New Zealand Foresi Pro6d ’ Th P J n^ enCe . s Bold unaltered at 15s inc, I? m2 rd ”}®rtes advanced 8d to dealea?lv h. l ,S;., Wha J ta L ane BD ? rd MUIS - after at r 27, b «a ne wi J* 27s - improved to sales in £ le S$ h ®L Ho . lcf ‘ ngs were flr m 14s n?!rt 8 ,„ 1 37 . s 6d ’ Mason, Struthers. tL, paid ’ were strong in sales at 24s 6d. a n n ounced improved protnn« 2 d - lvldend during the week. Acetone preferences returned to the sales list * n a transaction at 23s 9d. aa J k. C ; OIe V recovered to dealings at MKSWSFtt ?" d I ‘w ®S u prepared to accept frartm™nS™ Or ? hs ’< S ° uth Africa, were tF A«2JJS2 y - e ?? ler ? n business at 20s 9d. absent ?«J )r ?H ff h J ch have been “.“re., ~m, the sales list for an appreciable time, had dealings at 30s 6d. Norvic we« >m^.^ ter . ed V Matea Fo< rests Kn™» h J?F® d ln dealings at 3s 3d. to ® rd l nfl ry shares, returned to the sales list to sell at 17s.

CURBS ON BANK CREDIT

CRITICISM OF POLICY J . T ! le restriction of bank credit for industry is at best only a supplement to aM'Out attack on the basic causes of £ datio ( n - <? ay , 8 x th ® Bank of New South J* 8 latest quarterly review. Tne most obvious weakness of present credit policy is that while it is applied vigor?M 81y t <? e fading banks, oFher institutions are free from restrictions. d ® nc ? has grown In recent years !2,J? ddl P PV v ate banking with a disprot£5 U «t?,!. hare anti-inflationary con“y,s the review. Banking controls appear less unpopular than more direct mfmHJ es becauBe their effects on the comty are not so readily observed. The amazing growth in the advance business of the trading departments of the C™ l ™® Bl * l S ank ’ stat ® banks, and „J“l27 banklr } B institutions is evidence of this weakness. Although the poli<w ol Jh , <> eal H h Baßk administers credit deri^ m S. e «. a S vanceB . of its own trading lL a Y e A iBen t 0 more thari 1945 levels, while the on® lnH bl L nk K advances have Increased period a times In the post-war "view suggests that the Govern--12* P? rti C ul ar attention to •? natlonary nature of the “cheap 2??“ ey , t Pollcy ’ A n Increase in..lnterest « aya ’j WOUld act aS a deterrent to borrowing and as an incentive to saving.

AMERICAN METAL PRODUCTION

93 :°«’-® OO net (84,630,000 metric) aU / orms were shipped py United States producers to consumers las ‘ y aar '•ccoyding to the American Iron ana Steel Institute, a trade association. This was a record tonnage. In this total of foundry and mill products of the major commercial metals, 72,200,000 net (65,700,000 metric) itons was finished steel such as sheets, pipe, bars, rails, and other items. Cast ferrous products amounted to more than 15.000,000 net (13,600,000 metric) tons. These products Included cast grey iron and malleable iron and steel castings, used for such purposes as automobile engine blocks and machinery parts. The iron and steel industry furnished about four-fifths of the major commercial metals produced. The remainder of tire metals tonnage came principally from the aluminium, copper and brass, lead, and zinc industries. These four industries accounted for 51,100,000 net (4,641,000 metric) tons, or 5.5 per cent, of total shipments.

CANADIAN SAVINGS BONDS

Canadian savings bonds to be issued In October will have new features which will make the bonds the most attractive security of its kind yet offered in Canada, says the Ottawa correspondent of "The Times.” They will offer an Increased yield to those who hold their bonds for longer periods while still giving a good return to those who may need to cash them early to meet emergencies. The bonds will mature 10 years and nine months from the date of issue, and will carry interest coupons of 3j per cent. The first coupon will be payable on August 1, 1953, with an effective yield erf 2 per cent, per annum for the 21 months period, and the remaining nine coupons will be payable on August 1 each year thereafter. This will give an average Interest rate over the life of the bonds of approximately 3.21 per cent, per annum. Previous issues of savings bonds matured in 10 years and paid a straight 23 per cent, per annum. If the new bond is cashed before the first coupon becomes due, interest will be paid at the rate of 2 per cent, per annum. The limit of holdings In any one name is being raised to 5000 dollars. Bonds may be purchased only by residents of Canada.

DEPARTURE FROM THRIFT

Governments In other parts of the world had tried to check inflation by various means, but it was clear that these efforts could not be successful overnight, said Mr W. J. Byrne, chairman of the Commercial Bank of Australia, Ltd., at the annual meeting in Melbourne last week. Many reasons had been given for the development of inflation, but it could be ascribed largely to insufficient production and the growth of public spending capacity. Mr Byrne said it was a matter of real concern that there had been a widespread departure from thrift and prudence. Although supplies of wool were short, a consumer resistance might become a real obstacle to sales at prices approaching those got earlier this season. Further wool price falls might yet develop, he said, before wool reached a level more in keeping with the capacity of overseas countries, to buy full requirements.