FINANCE and COMMERCE.

Dominion, Volume 23, Issue 83, 2 January 1930, Page 14

FINANCE and COMMERCE.

DOMINION WOOL SALES EXTENSION OPPOSED BRADFORD VIEWS Bradford, December 30. The British Wool Federation is opposing tile extension of the New Zealand wool sales season because buyers are anxious to go to England at the end of March or the beginning of April. Mr. George Whitaker, president of the federation, contended that the value of the New Zealand clip would not be enhanced by the extension; nevertheless the New Zealand Wool Committee could extend the roster of sales if it so desired. Mr. William Huntdr, past-president of the federation, said importers had to adopt a conservative policy in buying. They were not prepared, without the support of other branches of the industry, to relieve growers of the burden of carrying clips* for the use of consumers until the arrival of the following clip. Reporting from Coleman Street, London, on November IP, H. Dawson, Sons, and Co Ltd., the well-known woolbrokers, state that topmakers and spinners are not disposed to follow the overseas values for wook nor to sell at Yorkshire rates and run the risk of further losses; consequently there is a pause in trading at the moment. Prices in Australia have appreciated a little too rapidly for the Home trade, and although the decline from last season is fully realised, and the way the Australian growers are meeting the market- is recognised, yet there still remains considerable' uncertainty and nervousness. This is probably due to several reasons, any of which may be exaggerated in importance. Tile restriction of ofterillks prior to Christmas naturally gives the impression that the supplies in the New Year may be over-plentiful; then the fact that the markets are being largely influenced bv Russian and Japanese buyers, rather than by the more stable and important European demand, produces some nervousness as to its permanence. Stocks and Finance. Conditions at the piece-goods end of the trade, and with British manufacturers, are somewhat "patchy.” New business, except in specialities and novelties, is not yet of sufficient volume To encourage large buying operations. It is probable that if a brisk demand should materialise, the present overseas’ values will not prove to be the chief obstacle to good business; but until machinery is more fully employed the fierce competition and undercutting of quotations Which has prevailed for some time past cannot be eliminated. “Despitethis continued nervousness and caution, the industry has reached a better and more hopeful position during the past'two months—the incubus of old and expensive stocks has been largely relieved. Home spinners and manufacturers are generally lightly stocked, and after the retail hand-to-mouth trading of the past six months there is a large vacuum to fill up. There are still considerable stocks of tops in the combined Continental centres, but the merino holdings are beginning to show a steady diminution. “The financial factor is still an important otic, for the absorption of the world’s large wool clip this season—Yorkshire is not alone in being less strong than in former years in its ability to hold heavy stocks or to indulge in speculative operations. It applies to most consuming centres, and it is felt that the producers ’will have to share some of the responsibility in the holding and in the careful marketing of this season’s clip to a larger extent than in former years. This results in the present scheme of extending the offerings over a longer period. "Any methods that will tend towards a better stabilisation of values, and a minimising of the numerous risks of recent years, will be welcomed. The greatest need of the industry—to help towards augmented trade—would be best found in a return of real confidence in the basis of values. Meanwhile a cautious spirit, and a retail policy, is the prominent feature of European trade.” Half-year’s Sales in Sydney. As a result of the curtailment of offerings due to market exigencies the quantity of wool sold at the half-year’s Sydney sales shows a drop compared with the previous season, being, in fact, the lowest since 1924, says the "Sydney' Morning Herald” of December 21. The following figures give the sales made between July and December during the past 10 seasons:

As far as the quantity of wool sold is concerned many leaner periods’have been experienced than during the half-year just closed, but the buoyancy of selling conditions of late years has practically erased the memory of .difficult times from the minds of those concerned. The delay in offerings has, therefore, caused annoyance to sheepmen, but it has been unavoidable. The wool sold to date this season, on a conservative estimate, has realised £6,560.000, compared with £12,598,245 to the same date last season. The marked drop is due to the lower market and the reduced quantity sold. BRADFORD TOPS MARKET (Rec. January 1, 5.5 p.m.) London, December 30. The Bradford tops market shows an 'improved undertone. There is more inquiry for merinos at slightly below last quotations. Crossbreds are quiet. METALS MARKET ANOTHER SLUMP IN TIN (Rec. January 1, 9.10 p.m.) London, December 30. Metal exchange quotations are as follow, those previously cabled being given for purposes of comparison:— Copper — Dee. 16. Dec. 30.

WALLPAPER PROFITS ' The accounts of Wall Paper Manufacturers for the year ended August 31 disclose a net prolit of £61)3,616, as against £646,320 for 11127-28. Holders of ordinary shares and deferred shares again receive 10 per cent, and 15 per cent, for the year respectively, an allocation of £150,000 is made in reduction of goodwill, patents, processes, and trade • marks, and £50,000, as last year, is added to pension funds. The "carry forward" is reduced from £302,177 to £205,706. Last year £125,000 was transferred to reserve fund. The balance sheet embodies certain changes in order to comply with' the hew Companies' Act. The issued share capital has been increased during the year (it is now shown at £4,600,000) by the allotnfent to the vendors of Messrs. Arthur ■ Sanderson and Sons of preference, ordinary and deferred shares, issued as fully paid-up in part payment of the purchase, price of the shares in that company. As no Information was available to enable the directors to separate the amount paid for goodwill, patents, processes, and trade marks from the other fixed assets, an Independent valuation of the tangible assets has been made, and shows a total of £2,126,677. By deducting this amount from the book value of the property account, the balance left is the book value of the goodwill, etc. Krom this balance has been written off the premiums on shares issued in part payment of the purchase of the business of Arthur Sanderson and Sons and the profit on purchase and cancellation of debenture stock, leaving the goodwill itcin at £1,374,365. During tlie past year the land, buildings, plant and machinery, formerly leased to the Walpatnur Company have been transferred to that company and shares allotted to the controlling company in respect thereof, as also in respect to the amount owing on current account. In addition, tlie company has subscribed for further shares of the Wnipamur Company to enable it to cope with its increasing business. A dividend of li per cent, has been received on the ordinary shares of the Canadian investment, as against 3 per cent, last year.

DAIRY PRODUCE LONDON MARKET PRICES BUTTER FIRM, CHEESE SLOW Dalgety and Company Limited have received the following market report from their head office, London, dated December 30:—Samuel Page and Son report. Cheese 1/- per cwt. lower, market slow.” Amalgamated Dairi'es Ltd. on Monday received the following market report from their London office’.—Butter: Our prices now firm, Anchor, 164/-. Market firmed before holidays on steady demand. Little business, passing as . buyers still absent, but anticipate renewal demand next week round these prices. Danish closed before holidays, 176/ spot- now asking .178/fo.b. Retail unchanged. Cheese: White, SO/-, coloured 87/. Market steady. Little business passing. Canadian, 96/- to 100/-. Quiet. Retail unchanged. GERMAN BUTTER DUTIES / . «■ I EFFECT ON DENMARK The N.Z. Dairy Produce Board has received a cable message from its London office reporting that Germany is increasing the import duties on all butters as from January 1 to 50 marks per 100 kilos., equal to 25/- per cwt. • A * The cable message further reported that Germany’s imports from Denmark during the last three months have averaged tons less per week than last year. The December Imports, so far,, arc 300 tons less a week, all of which, plus extra Danish production, is coming to the London market. In a recent report the London manager of the N Z. Dairy Board stated that Germany imported 88,027 tons of butter during the first eight months of 1929, or 6000 tons more than for the corresponding period of 1928. Denmark supplied 30,689 tons, Holland 22,448 tons of the total. Australia s contributions were 166 tons. Of the supplying countries only three, namely, Poland, Australia and Canada, are “non-treaty nations—imports from all other countries come in at the lower rate of duty as “Treaty Nation” import?. Early this year a general increase in duty was considered, and that on “non-treaty” imports was increased on July 31. decision on “treaty nations” imports being postponed pending termination of the existing German-Finnish Commercial Treaty. Final decision no doubt will be reached before the end of the year. Full particulars of rates are as follow:— “Npn-Treaty” Nations.—I J rior to July 31, 1929, 30 marks per 100 kilos —15/- per cwt.; after July 31, 1929, 50 marks per 100 kilos—--25- per cwt. “Treaty Nations.”—27J marks per 100 kilos—l3/0 per cwt. The suggested new duty on treatynations” imports was 40 marks per 100 Icilos —20/- per cwt. One kilo equals o 20462231 b., and the rate of exchange at time of writing was 24.40 marks to the £1 sterling. The regulation Increasing the duty on “non-treaty” nation imports from 30 marks to 50 marks per 100 kilos, provides that the latter rate shall remain in force until December 31, 1933; It is not to be less than 40 marks up to December 31, 1930, and not less than 30.30 marks from January 1, 1936. The duty on cream is two-thirds of the butter rates. DAIRYING BOOMERANG EFFECTS OF PATERSON SCHEME (Rec. December 31, 7 p.m.) Sydney, December 31. The expedient known as the Paterson Scheme, adopted four years ago, under which the butter producers of Australia subsidised the export trade through a levy on local sales, has Jiad far-reaching effects. Among these has been an additional re’nrn during the period mentioned of £lo.< CO,OOO to producers and a correspondingly' added cost to the Australian public for butter for local consumption. The condensed milk export trade is also feeling the effects of the high cost of butter-fat. A leading firm which has been paying 3d. per lb. extra, now finds it cannot compete with overseas manufacturers and announces a reduction in the price payable to milk producers by the equivalent of Id. per lb for butter-fat in New South Wales, 3Jd. in Queensland, and lid. in Victoria. The matter, is being considered earnestly by Interested sections of the mllk-pro-ducing and manufacturing industry in the hope of saving the condensed milk business N.Z. & RIVER PLATE CO. DIVIDEND 9 PEi? CENT. Dominion Special Service. Auckland, December 31. Cabled advice has been received by the local attorneys o£ the New Zealand River Plate Land Mortgage Company Limited that the profit for the year ended October 31, 1929, was £123,910. At the annual meeting to bo held in London on January .13 the directors will recommend that a final dividend be declared, making a total of 9 per cent, for the year (less income tax, 4/- in the £1), absorbing £63,000, that £15,000 be carried forward to reserve, and that £45,910 be carried forward. Following is a comparison of the company’s results for the last three'years:— .Brought forward, 1927, £44,839; 1928, £45.389; 1929, £45,793. Net profit, £75,050, £78.404, £78,117. Totals, *£119,889, £123,793, £123.910. To reserve, £15,000, £15,000, £15,000. Dividend, 8% per cent., 9 per cent., 9 per cent. Amount, £59,500, £63.000, £63,000. Carried forward, £45,398, £45,793, £45,910. The latest addition will raise the reserve to £280.000. UNION BANK DIVIDEND (Rec. January 1, 7 p.m.) London, December 31. The Union Bank of Australia, Ltd., has declared an Interim dividend of 12 j per cent., tax free. ABERDEEN ANGUS CATTLE STUD STOCK FOR NEW ZEALAND (Rtfe. January 1, 7 p.m.) Vancouver, December 31. Twenty head of registered Aberdeen Angus cattle, from the Glencarnock Farm, operated near Brandon by LieutenantGovernor McGregor, of Manitoba, reached Vancouver on Tuesday, en route to Australia anil New Zealand. The shipment includes six champion bulls consigned to Sir James Murdoch. Sydney, Mr. E. J. Herrick, Hastings, and Mr. J. Olglvy, Masterton. PRICE OF GOLD (Rec. January 1, 7 p.m.) London, December 31. Gold is quoted at 84/10 per ounce, as against 84/11J yesterday. WHEAT MARKET .(Rec. January 1, 5.5 p.m.) London, December 30. Wheat. —Cargoes were firmer in sympathy with American quotations and were quoted 3d. ’to Od. higher. Buyers were inclined to respond. Parcels were in quiet demand at an advance of (id. Futures: London, December, 50/6 per quarter; January, 50/7; March, 51/4); Liverpool, December, 9/5 5-8 per cental; March, 9/10 5-Bd.; May. 10-0); July, 10/0 5-Bd. New York, December 30. Chicago wheat: December. 1 dollar 26 3-S cents: March, 1 dollar 32 1-8 cents: May, 1 dollar 35 5-8 cents; July, 1 dollar 35 5-8 cents. , , .

ANTHRAX IN NEW SOUTH WALES (Rec. December 31, 7 p.m.) Sydney, December 81. A case of suspected anthrax reported from tlie Singleton district lias made it necessary for quarantine measures to be taken. It is hoped to localise the outbreak.

. Bales. Bales. 3920 . . 88,124 1925 . . 534,957 1921 . . 373,790 1920 . . 548,458 1922 . . 410,037 1927 . . 504,240 1923 . . 349,359 1028 . . 549.759 1924 . . 302,588 1929 . . 433,794

Per ton. Per ton. £ s. d. £ s. d. Standard, forward 69 2 (5 67 5 0 Standard. spot .. G7 18 0 GG 10 10J Electrolytic 82 10 0 82 10 0 to 84 0 0 83 10 0 Wire bars 84 0 0 83 10 0 Lead— , Spot 21 7 6 21 13 9 Forward 21 10 o 21 10 0 Spelter— Spot .... ....... 20 2 6 19 16 10} Forward ........ 20 13 .0 20 7 6 Tin— Spot ISO '2 (I 175 3 9 Forward 192 7 6 178 13 9 Silver — Fine, per oz. 22 9-lGd. 21 5-lGd. Standard, per oz.j 24 5-10d. 23d.