TRADING BANKS’ RETURN

Press, Volume XCIV, Issue 28056, 25 August 1956, Page 12

TRADING BANKS’ RETURN

VOLUME OF MONEY FALLS £13.4M

A sharp fall in the volume of money in July is shown in the late>t trading banks’ return. The latest ure—an estimated £307.600.000—is £13,400.000 below the June figure, but still £1,100,000 above the figure tor the end of July, 1955. The main, cause of the drop, which is seasonal was a decline of £11.700.000 in demand deposits. Last year, between the end of June and the end of July, demand deposits fell £7,300.000 and the volume of money £11.500.000. Although advances and discounts tell £2.300,000. unexercised overdrafts rose £5,500,000 and trading bank borrow, ing from the Reserve Bank rose £4,700,000. Net overseas assets fell £3.900.000 during the month and at the end of July were £400.000 below the July, 1955, figure. Principal items in the returns are:—

COMPANY NEWS HUNTLY BRICK ACCOUNTS RECORD SALES LAST YEAR BUT DEMAND NOW LOWER ‘The Press” Special Service AUCKLAND, August 24. Net profit of the Huntly Brick and Fireclay Co., Ltd., rose £11,592 to £13,521 in the year ended April 30. In the previous year, earnings were affected by seven weeks’ loss of production during kiln repairs. The latest result was reached after provision of £13,100 more for taxation at £14.000, and unspecified depreciation. Dividend is unchanged at 8 per cent, requiring £4400, and £7OOO (nothinj in the previous year) has been transferred to general reserve, leaving a carry-forward of £2201, against £BO brought in. • • The directors state that the year was a record one for production and sales of bricks. The sales figure of £llB,OOO was well in excess of any in the company’s history. Since the close of the financial year, however, a definite slowing-up in demand had taken place and it would be unwise to count on the coming year reaching the high figure of the last year. The directors were planning to stock bricks to keep the works going even at a lower output, and this would entail a considerable amount of expense. An advertising campaign might be required in an effort to stimulate sales, and expenditure on this could well be £lOOO per annum.

TASMAN PLANT REACHES RATED OUTPUT (New Zealana Press Association) AUCKLAND, August 23. The newsprint machine al the Tasman Pulp and Paper Company’s mill at Kawerau has already reached its rated output of 1600 ft a minute, states Dr. R. S. Jobin, production manager there. He adds that it is hoped to step production beyond this figure. The wood room has also increased its output and last week’s figure of 75,000 cubic feet was a record. Because of this speed-up in lumbermen of the Kaingaroa Logging Company have been stepping up out« put to keep the mill supplied. The bushmen have been working a six-day week and a night shift has been put on in an effort to keep the logs rolling to the digesters. Timber trains have been increased in length but they have not yet managed to cope with the output from the forest. Crystal Ice.—An unchanged anmal dividend of 25 per cent., ex August ft. is recommended.—(P.A.) Milburn Lime.—A final dividend oi 11.8 d (making 7 per cent, for the year) is lecommended, ex September 11— (P.A.) Beath’s Dividend.—Beath and Company, Ltd., recommend final dividends of per cent, preference and 3J per cent ordinary. Total preierence payment for the year is a steady 5 per cent., while total ordinary paymnt is reduced from 12J per cent, to 10 per cent. Rothmans.—Plans to build a £300.000 cigarette factory in Perth by a Sydney cigarete firm, Rothmans of Pall Mall (Aust.), Ltd., were announced last week Senior executives of the company recently visited the United Kingdom headquarter* to arrange for additional machinery and finance to establish two new lactorieaone in Perth and one in Melbourne. Mount Lyell.—Net profit of the Mount Lyell Mining and Railway Company amounted to £630,168 for the nine months to June 30. Profit for the previous 11 months was £1,004.144. Profit was struck after writing-off £83,517 for pro«P«UnB development, £152.053 for depreciation, and £205.000 for taxation. Dividend Is Is 5d a stock unit.—(P.A.) 200 M DOLLARS INVESTED IN POST WAR HOLLAND The Dutch this month celebrated the arrival of the two-hundred American investment dollar since w® close of the war, reports the New York correspondent of the “Australian Financial Review.” In that period, 50 major American c mpanies have established W®* sidiaries in Holland and 27 have entered into partnerships wIW Dutch firms for the manufacture o* American products. No other country in Europe can match this flood o* American investment. . Holland’s success, it is held America, can be traced to an almon total lack of irritating red tape. luusj trative of this is the surprising that a foreign company wanting open in Holland needs only mit and has to apply to only one GO*' ernment agency, the Ministry of E oo ' nomic Affairs. This, Americans say. contras*sharply with the endless delay? the maze of Government agencies » be braved by any businessman vn®* ing to establish a factory in Grea Britain or France. LONDON WOOL FUTURES (N.Z Press Association—Copyriaht) LONDON. London wool terminal market quo* tions:— Buyers. Se,,eT l d per lb d 10 September .. 1241 December .. 1201 March .. 116 July •• H3j U« Bradford Wool Tops—Merinos average. 135 d per lb; 64’s, average. 60’s, super 114 d Crossbreds: 56’s carded. 89d per lb; 50’s, average c«rov“ 82d; 46’s. average carded. 80d Clutha River. In the quarter June 30 the dredge worked 1492 and recovered 1343 ounces of «o,a(P.A) Wellinc ton Alhivials.—ln the ended August 17 the dredge hours and recovered bullion estirn>*r to contain 276 ounces of fine gold.— lr-m

July June July 1955 1956 185$ (£m) (£m) (£ m( Demand deposits .. 231.3 240.8 229.1 Time deposits .. 51.1 43.9 47.7 Balances al R.B. .. 51.9 72.3 6’8 Stat. Min. deposits .. 51.2 71.5 67.1 Trading bank borr. .. 8.1 9.9 144 Volume of money .. 305.5 321.0 +3074 Advances* .. 184.2 164.7 U24 Unex. overdrafts .. 100.5 95.0 100.5 Net overseas assets .. 17.8 21.3 174 •Including discounts. + Estimated.