FINANCE AND COMMERCE

Dominion, Volume 24, Issue 110, 3 February 1931, Page 12

FINANCE AND COMMERCE

STOCKS AND SHARES

ft Wellington Exchange - 'ft '

WEAK MARKET

"i The share market. continues very dull, and buyers are reducing blds. On the Wellington Stock Exchange there were two sales recorded yesterday, and the number »f buyers was very restricted. There was not much demand for Government securities. The 4J per cent, stocks, 1039 and 1938, were wanted at £95, against sales last week at £96, and the 4} per cent, bonds, 1939 and 1938, were In demand at £95/5/-, or 10/- below last week. Wellington City 4 per cent.s due this year Were wanted at £lOl, with no sellers.' Bank shares were slow, with an easier tendency. Commercial Bank of Australia were steady at 14/-, cum. dividend, but there were no sellers. National Bank of

Australasia, £5 paid, at £4/10/-, were 2/6 higher; Bank of New Zealand were In demand at 45/3, but sellers held for 46/6. Union Bank shares sold at £6/16/-, which Is 4/- lower than the lowest price recorded last week, and the shares have not sold at such low figures for a very considerable time. Sellers of Union Bank now quote £6 17/6, or 6/6 less than on Saturday. For Bank of New South Wales sellers have reduced the. price by 7/6 to £27/12/6. Goldsbrough Mort and Co. were in demand at 16/-, against sales last week at 16/10. Gas shares were neglected. South British Insurance were wanted at 01/-. while National Insurance were on sale at “ 13/3, and New Zealand Insurance at 41/9. Gear Meat were very firm at 27/-. with no sellers. P. and O. deferred stock were in demand at 32/-, which is much belowsellers’ideas of value,. New Zealand Breweries were a share higher at 32/7; Staples and Co. changed hands at 32/-. and there were further buyers at the price. Burns, Philp and Co. were steady at 26/-, but sell- , ers held for 31/-. Wilson's Cement were easier, with buyers at 35/-; sellers, asked 38/-. There was no demand for oil shares. Yesterday’s Quotations Buying and selling quotations at yesterday's final call on the Wellington Stock

EQUITABLE BUILDING CO. Annual Meeting ■'' \ ' ■ At the fifty-third annual general meeting of the Equitable Building and Investment Company of Wellington, Ltd., held yesterday, the chairman and managing director (Sir Harold Beauchamp), in moving the adoption of the report and balance-sheet, Sa Qn the debit ..side. of. the balance-sheet the capital, £OO,OOO, remains the same. This ’• year' £lOOO has again been carried tn the reserve fund, which now stands at £76,399. Deposits .and interest are rather less compared with last year. On the credit side, mortgages and interest, less £BOOO hc-id in securities depreciation account, are also somewhat, less than last year. The Item “Government, inscribed stock, £24,802, * is. unchanged. Profit and Loss Account. —On the debit Bide shows this year that the ascertained losses on mortgaged securities amounted to £7745/15/4. On the credit side, to meet such losses, £3500 has been taken from the securities depreciation account —the rest has been provided out of profits. The gross profit for the year is £13,483 18/4, which is slightly less than the previous year, which showed £14,364/10/10 —the reason being that certain arrears of inter--est, in the meantime, have been suspended. The interest so-suspended is due from various mortgagors of farm properties. After allowing for the interim dividend paid in July last, and after making other provisions, there remains—with the amount .brought forward—a balance of £7070/3/11, which -your board recommends should be appropriated as follows: — £ s. d.

To payment of a further dividend ' .oL 5/- per share, making 10/- ■ per. share for the year 3000 0 0 To transfer to reserve fund .... ,1000 0 0 And to carry forward .... 3070 9 11

Further remarks by Sir Harold are reported elsewhere, Mr. William Ferguson seconded the motion, which was carried without discussion.

The retiring director (Mr. Jacob McEldowney) was re-elected, and Messrs. E. Bucholz and W. S. Wheeler were reappointed auditors. [A summary of the balance-sheet and comparisons with previous years was printed in this column on January 13.]

AUCTION SALES TO-DAY. Allen St., 10 a.m.—Sale of Meat (Townsend , and; Pual). Cuba St., 1.30 . p.m.—Sale of furniture (Silverstone and Co.) 01 Dixon St.. 1.30 p.m.—Sale of furniture (C. W. Price). Bank of N.Z. Buildings, Lambton Quay, 2.30 p.m.—Sale of brick bungalow. (G. Tolhurst and Son). Allen St., 10.30 a.m.—Sale of poultry. (Townsend and Paul). Levin Sale. TO-MORROW. Panama St.. 2.30 p.m.—Sale of land and property, a/c S.C., 65 Constable St. (Harcotirt and Co.). Dominion Farmers’ .Institute, , 2.30 p.m.— Sale of land and- property, a/c S.C.. 8 Brougham Av. (Longmore and Co.). Johnsonville Fat Stock Sale, 1 p.m. (Wright. Stephenson and Co. and Abraham and Williams). 4 Henry.St.. Kllbirnie. 1 p.m.—Sale of property and furniture, etc. (I. Silverstone). 8 Wllleston St., 1 p.m.—Sale of E.P. ware (E. Johnston and Co.) Johnsonville Saleyards, 2.30 p.m.—Sale of thoroughbred filly (Wright Stephenson and Co.) THURSDAY. Baleyards, Waerlnga Rd., Otakl, 11.80 ■ a.m.—Sale of dairy farm (Dalgety and , Co.) * Fellding Ram Fair—lo a.m. ‘Otakl Stock Sala,

DEALINGS ON 'CHANGE

Saturday’s Business

DOMINION SALES

The following sales were recorded on the Stock Exchanges of the Dominion yes-

BANK DIVIDENDS Australian of Commerce. The board of the Australian Bank of Commerce Ltd., hag declared dividend at the rate of 5 per cent, per annum for the half year ended December 31 last. For the vear ended June 30 last the distribution was at the rate of 7 per cent, per annum. . , „ . The directors of the Commercial Banking Company of Sydney, Limited, have declared a half-yearly dividend at the rate of 9 per cent, per annum, payable on January 27. The previous half-yearly dividend was at the rate of 10 per cent, per annum. ' 1 WELLINGTON TRUST & LOAN Annual Meeting The fifty-eighth annual general meeting of the Wellington Trust, Loan, and Investment Company, Ltd., was held yesterday. The chairman of directors (Mr. J. A. Plimmer) presided. In moving the adoption of the report and accounts (printed in this column on January 17), the chairman said: “The directors, in presenting the report and bal-ance-sheet for the year ending December 31, 1930, are pleased to record that the accounts for the year’s working show satisfactory results. There has been a flight increase in the amount of deposits, and the amount invested in mortgages shows an Increase of over £10,009. It will be noted that a 10 per cent. Increase on the previous year's assessment for Income tax has increased the taxation amount for the year under review. As provided by the Act, allowing 2 per cent, depreciation on the cost of the building, the company’s business premises have been written down by the sum of £ll5/12/9.” The motion was adopted. Messrs. J. J. Belch and O. S. Watkins were re-elected directors, and Messrs. E. W. IJunt and G. F Judd were reappointed auditors. TALLOW AND HEMP High Commissioner’s Report The Department of Agriculture ,has received the following cablegram, dated January 31, from the High Commissioner for New Zealand, London: — Tallow: No auction until next week. A' little more Interest shown on spot and for shipment, but no material change in values.

Hemp: Manila market steady, with better inquiry for spot and early shipment. “K” grade Feb./April shipment sold £l9 15/-. Sisal: Market firm with more business being done. Closing values Feb./ April shipment, No. 1, fair average qual ity, £l7/10/-; second grade, £l6/15/-. New Zealand: Market unchanged. Nominal values. Jan./March shipment, 10/below last quotations. No first-hand sales reported. Peas: Maple spot trade inactive. Chief factor Is forward shipments of Tasmanian which are offering at low prices. Feb./ March and March/Aprll shipments being down to 48/6. ’ Lowest quotations from New Zealand, 52/6, but buyers’ ideas 45/Stocks fairly small. Blues: Unchanged and only business being done is In Japanese and Dutch. Nominal value New Zealand ex store. £8 to £9 per ton.

LONDON MARKETS

Butter Firm Joseph Nathan and Co., Ltd., have received the following market report from Trengrouse and Nathan, Ltd., London, dated January 31:—New Zealand butter, 114/per cwt., market firm. The Bank of New South Wales yesterday received the following cable message from its London office, dated January 30: — Wool.—Better tone prevails; values 5 to 10 per cent, higher than at opening sales. Mutton.—Wethers, 3Jd. to 43d.; moderate demand. Ewes, 2jd. to 3|d.; dull. Lamb, 6id. to Bid.; steadier. Beef, 3d. to 4|d.; depressed, heavy supplies Argentine. Pork, 6d., 6Jd. Butter, 114/-. Cheese( 54/-; both steady. STERLING EXCHANGES London, January 29. The following rates on foreign exchanges are current to-day, as compared with the cabled quotations on January 22, and par:

Price of Silver. London, January 29. Sliver—Cash. 13 13-16 d. per ounce; forward, 13 9-16 d. per oz. CUSTOMS REVENUE. The Customs revenue collected at the port of Wellington yesterday totalled £14,460,

THE WOOL MARKET

Prices Up in Sydney

ANIMATED COMPETITION (Rec. February 2, 9.20 p.m.) Sydney, February 2. At the wool sales to-day the offerings totalled 10,642 bales, of which 10,505 were sold at auction; also 598 bales were sold privately. The average price of the wool sold last week was 7.3 d. per lb. There was most animated competition to-day. Prices generally were from 74 to 10 per cent, higher for all Merino descrip-' tions. The improvement was jnost accentuated for the finer sorts, with keener Continental support. Greasy Merino made up to 22}d. CANTERBURY WOOL CLIP Heavy Fall in Value Woolgrowers of Canterbury have lost £241,000 on their wool cheques so far this season, compared with the price obtained for a corresponding number of bales sold at the December and January sales of the season 1929-30. The estimated prices per bale at the two sales this season are as follow .-—December, £7/7/7; January, £6 0/9. Last season’s prices per bale were: — December, £l3/5/-; January, £lO/10/6. The average drop to date this season, compared with the last, has been £5/3/7 a bale. The total value of the Canterbury wool sold in Christchurch last season, calculated on the estimated average price per lb. for each of the four sales, was £807,688 13/-. The value of this year’s clips sold in the two sales was £279,038/10/-, leaving a difference qf £528,650/3/-, which cannot possibly be made up in the remaining sales this season. I . „ The most telling comparison of the fall in world prices for wool in the last 12 months is made when the figures for the December and January sales are compared, season for season. The December sale of the season 1929-30 gave Canterbury farmers £303,485, at an average price of lOd. per lb. The January sale of that year, calculated on an average of 8d„ returned £219,571/16/- to the farmer. The total for these two sales was £523,056/16/-. The corresponding sales of this season, calculated on average prices of 51d. and 4Jd. respectively, netted £279,038/10/-, leaving a deficiency of £244,018/16/-. In these two sales of this season there were sold 499 fewer bales than in the previous season, representing a value of about £3OOO, so that the actual drop in value over the two sales is reduced to £241.000/6/-. , „ The steady decline in value over the last season and the present one is seen in the following table, which gives the total amount returned to the farmer, the estimated average price per lb. for each sale, and the average,price per bale: —

Last Week’s Advance

It has been felt for some time that wool prices had reached bedrock, and the more buoyant tone displayed at the sales In London seems to confirm this. The series opened with prices about 15 per cent, lower than at the close of the previous series, and that decline has not yet been recovered. However, It is refreshing to see prices improve, although the improvement affects Merino wool mainly. Crossbred wool is so exceedingly cheap that its very cheapness must prove attractive and lead to Increased consumption. Manufacturers are now able to give excellent value, and this is bringing them in repeat orders. The remaining sales to be held In New Zealand should see better prices if the sale at Invercargill last week Is any guide. -The next wool sale in Wellington will ba held next week, and the catalogues should be somewhere near the limit fixed by the Wool Committee. COMMONWEALTH BANK Decline in Deposits Features of the quarterly average re-' turns of the Commonwealth Bank for the December term of 1930 are a decline for the year of £7,806,684 in current deposits (not bearing interest), and an Increase during the quarter in short-term loans in Australia from £1,047,452 to £3,901,236. The chief item among liabilities is the amount of balances due to other banks, which amounted to £20,824,224 compared with £l-5,665'655 in the previous quarter, and £8,412,756 in the corresponding quarter of 1929, This item has increased steadlly’slnce the trading banks were required to pass over their holdings of gold to the Commonwealth Bank. Offset against this movement Is the Increase in the value of Government securities held. S-hort-term loans in Australia are shown at £7,020,323, of which £5,650,330 is on account of New South Wales. Included in the loans is £3,119,236, which is held at credit of various State Governments, and has not yet been drawn upon. The Australian total is therefore given as £3,901,236. Fixed deposits have changed very little, but deposits on current account, have decreased to £10,765,754, or, excluding the item Government accounts £3,119,087, offset against short-term loans to £7,646,667. Advances to customers in New South Wales have decreased by £182,758 to £6,843,681, and advances in Victoria have decreased by £2,356,068 to £2,701,524. Queensland advances have Increased by £1,400,000, but changes in other States have been smill. Loading figures for the December quarter, compare with those of the corresponding terms of 1928 and 1929 as follows:—

AUSTRALIAN WHEAT

Advances to Pools

In announcing the intention to increase the advance to co-operate pools from 2/to ~/4 a bushel., f.0.b., the Commonwealth Bank board stated that the offer was based upon the market' price of wheat on January 19, which was taken at 2/6) a bushel In Melbourne. Wheat markets abroad have been very weak in the last week, said the Melbourne "Argus” of January 20, and, according to the latest advices, the value of Australian wheat In Great Britain does not now exceed 2/81 a bushel for wheat for January-February shipment. On this basis wheat from Western Australia would be wortli a little more than 2/3 a bushel, f 0.b., a.nd, owing to bleachjng and damage by rain, Victorian wheat would be worth about 2d. a bushel less. Except possibly for sales of prime wheat, or of parcels for outside markets, the nominal value of Victorian wheat does not exceed 2/2 a bushel. In view of this weakness it Is improbable that the Victorian wheat pool will make use of the full amount of the advance offered ' by the Commonwealth Bank. The pool is now paying a first advance of 1/8 a bushel, equal to 2/2 a bushel, f.0.b., when all handling and other charges are provided for. The Victorian pool therefore haa been advancing the largest amount possible to growers, and has been sate in doing so because of sales at higher prices made early in the season. In New South Wales the wheat pool Is advancing about 1/3 a bushel, and It Is understood that no Increase in this payment is contemplated. The statement was published in Adelaide on January 24 that the South Australian

pool had been informed by the Adelaide manager of the Commonwealth Bank that the advance offered had been reduced from 2/4 to 2/1 a bushel. The South Australian pool has advanced 1/10 a bushel to growers this season, less rail freight and charges, and this Advance will not be increased. The terms of the advance granted by the Commonwealth Bank clearly indicated that the advance was subject to fluctuations in the market price of wheat, and that the bank did not assume nny responsibility for the liabilities of the pools, which were expected to balance their accounts tor the season.

Exchange were as follow: — Buyers. Sellers. N.Z. GOVT. LOANS— £ 8. d. £ 8. d. 4} p.c. Inge. Stk., 1938 95 0 0 96 0 0 p.C. ditto, 1939 ... 95 0 0 99 - 51 p.c. ditto, 1933 ... 2 C 51 p.c. ditto and Bonds, 1936 99 10 0 51 p.c. Bonds, 1937 ... 4| p.c. ditto 1939 and — 96 2 e 1938 ... 95 5 0 .. ■ DEBENTUBESWell. City, 4 p.c., 1931 101 0 0 — BANKS— Commercial of Aust. (ord.) • •0 14 0 ■ ■■ * English, Scot. & Aust. — 13 0 ‘National A/asia (£5) 4 10 0 —— New South Wales ... —— 21 12 6 New Zealand 2 5 3 2 6 0 Union of Australia .. FINANCIAL— 0 IS 6 17 6 Goldsbrough Mort ... 0 0 17 3 . N.Z. Guarantee Corp. ■1 — 0 6 6 taw. 0 10 0 Wellington (ord.) ... INSURANCE— — •1 8 G .... — V lo 3 — *2 1 9 2 11 0 MEAT PRESERVING— 1 7 0 N.Z. Refrigerat. (10/7) TRANSPORT0 1 4 Huddart, Parker (ord.) —- 1 5 0 P. and 0. Stock ...... WOOLLEN1 12 0 — Wellington (ord.) ... COAL— — 5 0 0 1 5 3 TIMBER— Leyland-O’Brien BREWERIES — — 1 5 3 New Zealand 1 12 T 1 Staples and Co 1 12 0 1 12 9 MISCELLANEOUS— • British Tobacco (ord.) ■ ■ 1 8 Burns, Philp and Co. 1 6 0 1 11 U D.I.C. (ord.), 10/- ... — 1 0 6 Howard Smith (ord.) — 0 9 3 Newton King (pref.) . •— 0 12 ’0 .. .Wilson’s ■ Cement 1 .15 0 1 18 0 OIL— ■ 2 7 0 3 11 MINING— ■ : ' ■ ■ Mount Lyell . —-. 0 18 6 •Cum. dividend.

terday:— WELLINGTON. £ s. d. Union Bank of AuRtrnlia . 6 16 0 . 1 12 0 AUCKLAND. £ fi. < fl. .Aust. Bank of Commerce •••••• 0 13 3 2 5 11 nanK or riew auunuu •••••••••• Union Bank of Australia 6 19 6 17 0 6 New Zealand Insurance •••••••• 2 1 0 Goldsbrough Mortt (late Satur0 16 9 day) • • 1 1 0 30 0 0 2 9 0 ivempuwrue, riunaui 0 15 0 2 3 Waihi Grand Junction 0 1 2 0 1 3 CHRISTCHURCH. £ B. d. Commercial Bank of Aust., cum . V 14 j ■ i» div. •••••••• Po . 0 14 4 Pq ..«•••••••• . 0 14 5 . 1 13 0 . 1 12 0 AlB°d Motors , 0 0 10 . 0 18 5 King Solomon (2) . 0 1 04 p 0 (3) . 0 1 1 / p 0 ' . 0 1 2 Po. . 0 1 3 Mabakipawa (2) ••••••••••••••• . 0 0 74 Do/ ./.... . 0 0 7 Sales reported— Bank of N.Z. D mortgage . 1 5 6 Goldsbrough, Mort . 0 16 9 N.Z. Breweries ................. . 1 13 0 DUNEDIN. Sale reported— National Insurance . 0 13 0

Jan. 29. Jan. 22. Par. N. York, dol. to £ 4. 85 19-32 4.84 5-8 4.866 Montreal, dol. to £ 4.80 3-10 4.860 Paris, fr. to £ .. 123.905 123.85 124.21 Brussels, bel. to £ 34.825 34.825 35:00 Geneva, fr. to £ Amsterdam, fl. to £ 25.11 25.095 25.221 12.07} 12.06} 12.107 Milan, lire to £ .. 92.755 92.725 92.46 Berlin, inks, to £ 20.435 20.42 20.43 St'kolm, knr. to £ 18.145 18.135 18.159 C’hagen, knr. to £ 18.10 18.105 18.159 Oslo, knr. td £ .. 18.105 18.165 18.159 Vienna, schgs. to £ 34.535 34.525 34.565 Hel’fors, mks. to £ 193 192 7-8 193.23 Prague,knr. to £ 104 1-8 164 164.25 Madrid, pes. to £ .. 47.35 ■46.45 25.221 Lisbdn, ese. to £ .. 108.25 108.25 —— Athens, drach. to £ 375 375 375 II. Kong, p. to dol. 11} 11 5-8 — Bucharest, lei to £ 817 817 813.0 Rio de J., p. to mil. 4 3-16 4 7-16 16 B. Aires p. to peso 34 3-16 34} 47.62 M. Video, p. to peso. 32} 32} 51 Calcutta, p. to nip. 17} 17} 18 Shanghai, p. to tael 15 3-8 153-8 — ■ Y’hama, p. to yen. 34 7-10 24.58 Batavia, fl. to £ 12.’08} 12.07} 12.107

SEASON 1929-30. Total value. Av. lb. Av. bale. Sale. £ 11. £ 8. d. Nov . 200,897 11 14 15 2 Dec. 303,485 10 13 15 0 Jan , 219,571 8 10 10 6 March . 77,735 71 10 7 11 Total . £807,688 SEASON 1030-31. £ d. £ s. d. Dec. .... ,. 120.856 5i 7 7 7 Jan. ,. 158,182 4i 6 0 9 Total . £279,038

Deposits— Current . Fixed .. Dec., 1028. £ 16,104,903 9,583,032 Dec., 1929. £ 15,453,351 14,176,002 Dec., 1930. £ 7,646,667 13,551,577 Total 25,778.835 20,629,353 22,198,244 Coin 661.924 894,774 888.443 Aust, notes Govt, and 3,720,474 4,150,128 6.058.632 municipal securities Adv’es, etc. Short-term 11,370,096 14,710,324 14,139,240 16,312,005 22,500,831 12,494,150 loans In Australia 1,862,032 4,940,110 3,001,236