FINANCE and COMMERCE

Dominion, Volume 24, Issue 200, 21 May 1931, Page 12

FINANCE and COMMERCE

' STOCKS AND SHARES

Six Sales at Full Market Rates

> .WELLINGTON EXCHANGE

a Apart from Government securities and bank shares, there was little business ofJ feting on the Wellington Stock Exchange 4 yesterday. However, there were six sales J reported at full market rates. i Government securities were firm. The > 4J per cent, stocks and bonds, 1939 and i 1938, were firm at £9B/5/-; the 5} per cents., 1041,- were up 5/- at £96; and the 5} per ? cent, bonds were wanted at £99/7/6. Buy- * ers-renewed their offers of £97 for Wanganul Bojough 5j per cents., 1944; £94 for ’ Auckland Harbour Board. 5i per cent., 1939, and £9l/10/- for_ Timaru Harbour Board, 5J per cents., 1950. , Bank shares were in moderate demand. / Commercial Bank of Australia at 14/1 were •' a shade higher. National Bank of New J Zealand at £4/18/- were 6d higher. Bank > of New South Wales advanced 2/6 to £25 ■# 12/6. and there were two sales reported * at £25/15/-. Bank of New Zealand were i steady at 50/-, with a sale reported at 50/6. The long-term shares were firm at ‘ 26/-. Union were sold at £7/13/-. Goldsbrough Mort and Co. at 19/-, N.Z. J Guarantee Corporation, ordinary, at 5/3, and N.Z. Investment Mortgage at 9/10 were ■all steady and unchanged. A sale of N.Z. Guarantee Corporation at 5/4 was re- ‘ ported. Christchurch Gas at 24/9 were up 3d. Insurance shares were in gpod demand at late rates. National Insurance •' were wanted,_at 12/4, Australian Provincial j Assurance at 4/3, New Zealand Insurance at 41/4, and South British Insurance at . 50/-. , N.Z. Refrigerating, 10/- paid, were steady at 2/11; Walpa Coal at 6/0 and Ley- ” land 'O’Brien at 20/- were firm. Burns, Philp and Co. wore in demand at 30/-, but sellers asked 35/-; Electrolytic Zinc, preference, were 3d lower at 14/6. New Zea- ' ••land Paper Mills were steady at 18/-. Mount Lyell were down 2d at 10/10, but Waihi were 3d higher at 14/3,

Yesterday’s Quotations

| DEALINGS ON ’CHANGE > Sales in the Dominion The following sales were recorded on the stock exchanges of the Dominion yes-

DALGETY DEBENTURES London, May 19. Quotations for Dalgety and Co.'s shares ■nd debentures on the Stock Exchange today compare ns follow with those previously cabled:—

OIL BORING AT OMATA Reporting on the drilling operations at its Omata No. 1 bore for the week ended ,‘Jfay 16, Coal Oil (N.Z.), Limited, states: ‘ When the cement plug had been drilled ‘.‘out and well drilled with a fish-tail bit in sandy mudstone to 2600 feet, the drill stem was pulled out to change bits. While the new bit was being lowered two breaks were discovered in the casing. These have . been located and are being repaired preparatory to the cementing to support the casing and prevent further breaks.” AUCTION SALES TO-DAY. '’J/pper Hutt Sale. Skinner's Factory, 133 Main Street W.. ", J J . Palmerston North. 11 a.m.—Unreserved 1’ , Clearing sale (Mounsey and Co.). Allen St., 10.30 a.m.—Sale poultry (Town- / ■ send and Paul). FRIDAY. 142 a Tasman St., 10.30 a.m.—Sale groceries, etc. (E. Johnston and Co.). 8 Wllleston St.. 1.30 p.m.—Sale household furniture (E. Johnston and Co.). SATURDAY. /‘Premises. Levin, 2.30 p.m.—Sale suburban property a/c A. C. Holms (A. and W.). ,88 'Till St.. 1.45 p.m.—Clearance sale of .A.*’ furniture and effects (11. E. Leighton), 15 Thorndon Quay, 2 p.m.—Sale motor-cars (Householders’ Mart, Ltd.).

THE WORLD DEPRESSION

First Signs of Recovery

ILL EFFECTS OF PESSIMISM

“Within tho past few weeks the clouds of business depression which for more than a year have enshrouded the world have shown indications, if not of lifting, at least of becoming somewhat less opaque,” states the Westminster Bank, England, in its March Review, which has just come to hand. “For instance, the prices of certain commodities have ceased to fall, and have even risen appreciably from the lowest points in a few cases, such as copper, tin, cotton, wpol, and wheat. How much this movement signifies it Is impossible to say, the more so as some of the commodities mentioned are subject to artificial control tinder restriction schemes. Certainly its scope is at present too narrow, and its duration too short to presume an early cessation of depression, though, in conjunction with other evidence (such as the response of retail business to recent price reductions to customers), it suggests that the period of steadily-declining activity may be terminating, and the much more crucial period of readjustment beginning.” The Review adds that it was agreed on all hands that painful disillusionment awaited all who believed that economic prosperity would return, like an incoming tide, merely on the exercise of the passive virtue of patience by watchers on the shore. It was an essential preliminary to any well-thought-out plan of national reconstruction that Britain should know exactly where it stood, both in relation to its own previous standards of prosperity and in relation to conditions in the world as a whole. Within the past few months a considerable body of evidence had accumulated as to the extent of the world depression and the reactions of different countries to the forces whteh it bad released. It was now possible to analyse the chief economic consequences of the recession in trade activity, and to measure their extent in different industries-and in different- parts of the. world. A world crisis was inevitably accompanied" by all manner of uninformed, exaggerated or partisan statements. Whatever the intentions of those person's responsible for such statements, the effect of- their publication could not fail to be unfortunate. "An unduly optimistic diagnosis may Involve the postponement of essential, if painful, remedial measures,” the Review proceeds. “Over-pessimistic pronouncements provoke extreme discouragement, which tends to paralyse positive action, alike in the individual and in the community. A partial or distorted view may focus attention on unessential or secondary. matters, to the neglect of more urgent questions. Since all the necessary evidence for a sound judgment is available to the conscientious inquirer, there is little excuse for ignorance as to the real nature and incidence of contemporary world conditions.”

The Review states that the characteristic feature of the present depression was its origin in the primary, rather than in the manufacturing industries of. the world. The earliest signal of Its approach was a catastrophic fall in the prices of raw materials and foodstuffs, many of which declined below pre-war levels, while in some cases selling prices were depressed even below the average production costs of the industries concerned. A second feature of the present depression was its comparatively late arrival in the manufacturing countries ns distinct from, the primary producing countries of the world. In Great Britain, for instance, although production in the first quarter of 1930 was lower than during the previous quarter, it was not until the late spring and summer that the industrial community was prepared to recognise that the situation contained the elements of.more than a purely temporary trade recession. During the remainder of the year, however, the contraction of Industrial activity was continuous. “Broadly, what has happened has been that while raw material prices have fallen very considerably, other industrial costs—wages, transport, capital charges, distribution costs, etc,—have shown a strong resistance to anything like a proportionate reduction,” continues the Review. “Retail prices for finished goods, consequently, have declined much less than wholesale PJ> c ® 3 ior raw materials. As a result, sales of the former in the home markets have been maintained to a much greater extent than their sales in overseas countries which have been impoverished by the drop in the prices of the raw, materials forming their o-wn staple exports. The tendency for the effects of depression to diminish, the.further.one goes from the raw material stage, Is borne out by the experiences of different branches of world trade. The primary producers have fared worst, then the producers of capital goods (which are another form of raw material for production), then the producers of commodities like textiles (which may be described as raw materials in the daily life of the individual). Next on the list come the finished foodstuffs industries, including trades like tobacco, which even in the more depressed countries have shown, so far. only a modest falling off in activity. Finally, retail trade in industrial countries like Great Britain, appears to have suffered least of all.”

COLONIAL MUTUAL LIFE.

Year’s Business Reviewed

The report of the Colonial Mutual Life Assurance Society. Ltd., for the vear ended December 31, 1930, shows that during the rrlmnii® Policies were issued assuring £7,100.941, the annual income arising from these new policies being £282 379 against £283,012 for 1929. Claims matured by death under 782 policies on 704 lives amounted to £412,970. including bonuses but less reinsurances. The stun of £325.796 ''T-3 Paid for endowments matured tinder 1439 policies. The addition to the life assurance fupd was £631.747. against £663,535 for 1929. The rate of interest yielded by. the funds was £5/7/8 per cent In the industrial department 45.682 policies were issued, assuring £2.046.135, against £2,414,188 for 1929. The annual income on the policies issued last year was £120,006. Claims matured by death under 1011 policies on 797 lives amounted to £25,997. The sum of £159,857 has been paid for endowments matured under 5896 policies. The funds In this department now total £1.956,508. In the accident department there were issued 2973—combined life, accident and sickness policies, assuring in addition to the life assurance bene--fits included In the business of the ordinary department, the sum of £973.981 should death take place as the result 'of accident, with other benefits in the event of disablement or sickness. In addition to these policies there have been issued 991 pure aceldeht and sickness policies assuring £393,766, Accident claims paid or outstanding. including medical expenses, represented £22.402. The actuary's report on the liability of the society under its policies reveals a total surplus over liabilities amounting to £598.428.

GOLDEN BAY CEMENT

Temporary Closing of Works

In order to pdrmlt further construction work to be carried out tlie Golden Bay Cement Company’s works at Tarakohe are to be closed down for a short period. A statement to this effect was made by the works manager, Mr. K. Maltby Robinson. The stoppage will not affect the whole staff. About a Quarter of the men will be required to carry out the construction, and shipping operations while the works are closed will provide occasional employment for those men whose services have been temporarily dispensed with. "The company has still a great deal of construction work to complete." said Mr. Robinson, “and. as the demand for Portland cement at this season is always rather light, the company is taking the opportunity of completing some of its construction programme while there are sufficient stocks on hand to meet the demand for tlie next two or three weeks. Shipping will be carried on. and the whole of that' work will be given to the men who are temporarily put off. It Is fortunate that a number of the men who will be out of work for this short time have had an opportunity during the past tew months of Increasing their earnings by working a considerable amount of overtime." There are between 80 and 90 men employed at the works. During the next few weeks a large shipment of coal is One to arrive at Tarakohe and about 2000 tons of cement, will be shipped.

LARGE LOAN FOR INDIA

London. May 19.

An Indian loan of £10,000.000 at 6 per cent, at par redeemabla in 1933-34 has been underwritten.

Buyers. Sellers. N.Z. GOVT. LOANS— £ s d £ s a 4i p.c. Insc. Stk„ 1939 98 5 0 . 98 15 0 ii •- p.C. ditto, 1938 ... 98 o 0 98 12 6 5j-‘P.C. ditto, 1941 ... 90 0 0 — 51 p.c. ditto, 1934 ... 97 0 0 98 0 0 44 p.c. Bonds, 1938 ... 98 5 0 — sj p.c. ditto, 1933 ... 99 7 6 • DEBENTURES — Wanganui Boro., &i • . t>.c.. 1944 97 0 0 ■ — Auckland Harb. Bd., . ■ « 51 p.c., 1939 94 0 0 Timaru Harb.Bd., 5J _ _ p.c., 1950 91 1J) 0 — Makerua Drn. Board, 6 p.c., 1948 ..I..... — 100 0 0 BANKS— 9 4 G Aust, of Commerce .. — 0 15 6 Commercial of Aust. 1 0 14 5 Commercial Bank. Co. 15 10 6 English, Scot. & Aust. — 4 12 0 National N.Z 4 18 0 —- New South Wales .. 25 12 6 25 17 G New Zealand 2 10 0 2 11 3 Ditto, long term .... 1 6 0 1 7 0 Ditto, long term, Sydney register — 1 4 0 Union of Australia .. — 7 13 0 FINANCIAL— / Dalgety and Co — 6 10 0 Gordsbrough Mort ... 0 19 0 —— N.Z. Guarantee Corp. 3 0 5 8 'N.Z. Invest., Mtg. and .> Deposit 0 9 10 , —— N.Z. Loan & Merc., ord. — 66 0 0 GAS— 9 1 5 0 Ditto, contr. . — 0 11 6 INSURANCE— Rational 0 12 4 '.Aust. Provincial .... 0 4 3 — 4 South British 2 10 0 — MEAT PRESERVING— 1 10 0 ■N.Z. Refrlgerat., 10/- . 0.2 11 0 3 4 /Well. Meat Exp., pref. — 0 17 6 TRANSPORT— "Adelaide Steam .— 0 10 0 Huddart, Parker, ord. — 1 2 0 COAL— 9 TIMBER— Leyland-O’Brien ... 1 0 0 —— BREWERIES— Zealand — 1 17 0 Staples and Co — 1 15 0 MISCELLANEOUS— Burns, Philp and Co. 1 10 0 1 15 0 Tobacco, ord. — 1 9 9 i- Dental and Medical . — 0 7 9 Electro. Zinc, ord. .. — 0 12 6 Ditto, pref 0 14 6 0 17 o Farmers’ Auction., 0 16 6 Howard Smith, ord. — 0 8 3 National Electric ... — 0 11 0 j, Newton King, pref. .. — 0 9 0 • N.Z. Drug — 2 14 0 N.Z. Paper Mills .... *0 18 0 —- /■ Wilson's Cement .... — ♦2 0 6 /OIL— 0 2 4 Shining— Mount Lyell 0 16 10 *0 17 7 > Waihi 0 14 3 0 15 o Waihi Grand Junction 0 2 4 $ *Cum. dividend.

j,terday:— ■y WELLINGTON. 'S’. ' . £ s d N.Z. Govt. 5} p.e. Stock, 1933 ... “Bank of New South Wales (2) ... 99 5 0 25 15 0 •Bank of New Zealand 2 10 6 .‘Union Bank 7 13 0 N.Z. Guarantee Corporation, ord. 0 5 4 AUCKLAND. ’ ‘•'N,Z. Govt, bonds, 5J p.e., 1933 99 10 0 N.Z. Govt. Insc. stk., 5} p.e., 1933 99 10 0 ■ South British Insurance (2) .... 2 11 6 •■•.Auckland Gas 1 3 1 'Auckland Gas, con 0 17 0 Colonial Sugar (late sale Tues.) Wilson’s Cement 35 10 0 1 19 9 Mount Lyell (late sale Tuesday) 0 17 0 CHRISTCHURCH. ; Commercial Bank of Aust. (4) £ 8 0 14 d 3 ■•Commercial Bank of Aust., pref (2) .....’ 5 6 0 King Solomon (4) 0 20 Winding Creek, 1/- paid 0 0 li Sales reported:— Commercial Bank of Aust, (late > sale Tuesday) 0 14 4 Dalgety and Co fl 7 6 Commercial Bank of Aust., pref. 5 7 0

April 7. May-5. May 19. £ s d £ s d .£ •s d Sharesi .... 8 7 6 6 0 0 t5 6 3 Debentures . 68 0 0 06 0 '0 tEx dividend. 65 0 0