U.S. WOOL TARIFF

Press, Volume XC, Issue 27307, 25 March 1954, Page 14

U.S. WOOL TARIFF

EFFECT ON NEW ZEALAND MARKETS President Eisenhower’s rejection of the Tariff Commissioner’s proposal to increase United States duties on raw wool and tops will be acclaimed by woolgrowers in Australia and New Zealand. It was hoped that this would be the outcome of last year’s application for increased duties.

This decision, If final, means, says Winchcombe, Carson, Ltd.’s Review, that the present duty of 25J cents (2s 3Jd) per lb will remain instead of being raised, as proposed by the Tariff Board, to 35J cents (3s 2d) per lb on raw wool and 362 cents (3s 3}d) on. tops and carbonised wool. United States growers will have, provided Congress agrees—and it is anticipated they will do so—a much more direct assistance in the access to a free wool market with no restrictions and a Government bounty if market levels are below the cost of production. The result will be that United States woolgrowers will know that their costs will be covered. Next season, United States woolgrowers are expected to produce more wool, but since this increase will by no means offset the leeway in United States production, and stocks at the moment are at a low level, Australian growers can fairly confidently anticipate a United States demand for wool in markets outside America next season.

This demand may not, of course, come directly in the form of an inquiry on local markets for raw wool in substantial quantities. Quite a lot of wool tops have been imported to the United States from Bradford and the Continent in recent years, but wherever the demand appears, it will be the Australian (and New Zealand grower) who will benefit in the long run.

N.Z. OVERSEAS EXCHANGE

FAVOURABLE BALANCE IN FEBRUARY (New Zealand Press Association) WELLINGTON, March 24. New Zealand had a favourable balance of £17,960,000 in its overseas exchange transactions during February, according to statistics prepared by the Reserve Bank of New Zealand. For the first two months of this year there is a favourable balance of £21,565,000, compared with a favourable balance of £21,646,000 for the comparable period last year.

SHAREMARKET INDICES

COMPANY NEWS Whitcombe and Tombs.—This company’s interim dividend is 4d a share and is now ex.—(P.A.) South British Insurance.—An interim dividend of 9d a share is payable April 15 and is ex April 2.—(P.A.) Mackintosh, Caley Shares.—New articles of association were approved by shareholders of Mackintosh, Caley. Phoenix, Ltd., at a special meeting in Dunedin last week. Approval was also given to the subdivision and conversion of existing shares into 5s stock units. The new articles have been approved by the New Zealand Stock Exchange Association. The coihpany will now apply for official listing’ of the shares. Winstone’s Bonus Issue.—Proposals to capitalise £450.000 of reserves by means of a bonus share issue of one new share for every one held were approved by shareholders of Winstone, Ltd., -at an extraordinary general meeting this week. Paid capital is now £900,000 in ordinary £1 shares. Shareholders first approved a resolution increasing the authorised capital from £500,000 to £1,000,000. The sum of £25,000 —representing the share premium account—and £425,000 of the general reserve fund were used in the capitalisation.—(P.A.) National Insurance Affairs.—At an extraordinary general meeting of shareholders in the National Insurance Company of New Zealand, Ltd., in Dunedin the following resolution was carried:— “That .a dividend of 3s a share be paid out of the profits at present standing to the credit of the general reserve, such dividend to be applied in satisfaction of the call of 3s a share made by the directors ,of the company.” Mr G. R. Ritchie, chairman of directors, said the position was fully explained at the last annual meeting, when it was agreed to increase the capital. of the company to £500,000 by the transfer of £150,000 from reserve. The dividend of 3s a share would be used to meet the call of a similar amount.—(P.A.)

New York.—Dow Jones (1926 equals 100) Rails. Industry. Shares. Dec. 31 .. 94.03 280.90 2.490.000 Jan. 29 .. 101.84 292.39 1,950,000 Feb. 26 .. 102.20 295.54 1,910.000 March 17 .. 101.65 298.31 1,740,000 March 18 .. 102.14 300.10 2,020,000 March 19 .. 102.23 301.44 1,930,000 March 22 .. 102.06 301.60 1,800,000 London.—"Financial Times”: Indus, ord. (1936 equals 100); Govt, and gold (1926 100):— .ndust. ord. Govt. Gold. Dec. 31 .. 130.7 100.21 89.39 Jan. 29 .. 135.4 100.25 91.14 Feb. 26 .. 136.3 100.51 91.10 March 17 .. 137.6 101.37 95.18 March 18 .. 137.1 101.30 94.89 March 19 .. 137.1 101.44 95.23 March 22 .. 136.8 101.35 94.21 March 23 .. 136.7 101.32 93.67