THE MONEY MARKET

Dominion, Volume 29, Issue 75, 21 December 1935, Page 14

THE MONEY MARKET

Bank of England Return GOLD STILL RISING Market Rates Firmer London, December 19. Tile Bank of England return for the week elided December IS is as follows:— Issue Department.

Short Loans and Bills. The Bank of England rate of discount is 2 per cent., to which it was reduced on Juno no, 193'2. from 2} per cent. Short loans are quoted at 13-16 per cent., compared with i per cent. last week. The market rate of discount for best three months’ bills is I per cent., compared with 43.64 per cent, last week. MOTUROA OIL FIELDS, LTD. Position of the Company The annual general meeting of shareholders in the Moturoa Oil Fields, Ltd., was held yesterday. Mr. J. AV. G. Brodie, chairman of directors, presided. The following report of the proceedings was supplied : — In moving the adoption of the directors’ report, balance-sheet, and accounts, the chairman said:— “The printed reports and accounts furnish you with an idea of the company's present position. I would like to add, however, some little further information regarding the production of the wells drilled by the company. As you are aware the company has drilled four wells, and of these three have produced oil. The No. <2 well has now been producing since August, 1931, and up to date has produced a total of over 700,000 gallons of crude oil. The No. 1 well, which was the well first drilled by the company, was not brought into production until the beginning. of this year, as by itself its working would not have been profitable. It has, however, produced a moderate quantity of some 17,000 Imperial gallons at very little cost. The No. 4 well has produced approximately 90,000 Imperial gallons since it came into operation, April, 1934. The total production of the three wells is, therefore, in the vicinity of 807,000 Imperial gallons, and this must be regarded as satisfactory, considering the nature of the field. “You will no doubt be very interested to know the view of the directors regarding the future of the company. The situation as it now stands is that the. company has insufficient funds to warrant the drilling of further wells. At the same time the present wells are producing a revenue which is adequate to cover the cost of maintenance, and in the absence of any unexpected expense will provide some return to shareholders. In the natural course of events, however, the production of the existent three wells will gradually diminish, therefore, your directors are exploiting every possible means to either secure further capital to resume drilling operations, or, alternatively, to interest big companies in this field. In Mr. Taylor's report reference is made to certain discussions he has had with the large oil interests. At the moment it would not be expedient to say more. Your directors, however, can say that there is no reason for the shareholders to feel that Moturoa Oil Fields has reached the limit of its tether. They are reasonably optimistic that within the next few months it may be possible to submit rd proposition to the shareholders for their consideration ensuring further revenue to the company, or alternatively, ways and means of exploiting the field. “The directors would remind the shareholders that the Moturoa Oilfields is the only company that has conclusively proved the presence of oil in Taranaki by drilling four wells, three of which are producing oil. In recommending the payment of the preference dividends for the year ended August 31, 1933 and 1934, the directors have taken the viewpoint that as «o further drilling can be undertaken. the company's net revenue, arising out of the production of the wells, should be applied to dividend purposes, and I have no doubt tbnt rtranhoiaer* will approve this point of view. The report and balance-sheet (printed in this column on December 12) were adopted. The retiring directors. Messrs. Charles E. Richardson and U. B. Williams, were re-elected, and Messrs. McCulloch, Buller and Spence were reappointed auditors. Mr. Charles N. Taylor, managing director. gave a brief survey of the operations during the year, and explained the nature of the geophysical surveys made. He stated that while in Great Britain and the United States of America lie had met prominent geologists, and others connected with the oil industry, and he had every hope that as a result of his visit it would be possible to formulate a scheme for further exploitation of the Moturoa Company’s field. A vote of thanks was accorded to Mr. Taylor for the information given, and for his work on behalf of the company during his visit abroad. Gold Mining Returns Talisman Dublin Gold Mines advised the Wellington Stock Exchange that 741 tons was treated at the Golden Dawn battery for an approximate realisation of £593. Australian Borrowing Uy Telegraph. - Press Assn —Copyright. Melbourne, December 20. .Mr. K. M. Niall, chairman of directors of Goldsbrough, Mort and Co., in addressing the annual meeting of shareholders, deprecated Government borrowing. He said that unless a halt were called it was only a matter of time when the Commonwealth would again be in difficulties. and the burden of taxation would be too heavy to bear. The recent Commonwealth loan of £7,500,000 had brought the total of new borrowings during the past four years to £130,000,000.

Notes issued £ In circu- Govt, debt ll.01o.100 lation 419,403,533 Other Govt. In bank- securities 24tl.52S.O37 ins dept. 40,580.932 Other securities 1,103,S40 Silver coin 1,352,423 ‘0 200,000,00(1 Gold coin & bullion 200,050,510 £100,050,510 £ 400,050,510 ‘Amount of fiduciary Issue. Banking Department. £ £ Capital 14,553,000 Govt, seRest 3,358,009 ctirities 82,750,001 Deposits: Disets., adPublic 10,253,959 vanees 7,173,300 Bankers 79,802,228 Other seOtherz entities 14,180,553 a/cs. 37,340,532 Notes 10,580,983 Coin 610.831 £145,307.728 £145,307,728 Proportion of reserve to liabilities. 32.30 per cent., compared with 35.40 per cent. last week. The principal items of the above return compare as follow with those of lust week: Dec. 11. Dec. IS. Deposits: £ £ Public 6,812.570 10,253.959 Bankers 94,387,207 79,802,228 Other accounts 37.,2'14,168 37,340,532 - —, ■ ■ ■ ■ ■ — ■ £138,434,005 £127,396.710 Securities: Government .. 84.212,941 82,750.001 Discts., advances 10.079,807 7.173.360 Other securities 12,911.585 14.180.553 Reserve 49,132,107 41.203,814 Noto circulation . 410,930,885 419,403,533 Gold'coin &lbullion 199,409,387 200,050,516