N.Z. AND RIVER PLATE CO.

Dominion, Volume 31, Issue 127, 23 February 1938, Page 14

N.Z. AND RIVER PLATE CO.

Last Year’s Results

The report of the directors of the New Zealand and River Plate Land Mortgage Co., Ltd., presented at the fifty-fourth annual meeting in London on January 11, stated that, after making due provision (including the deduction of £20,621 13/3 ou account of loss on exchange) the net profit for the year ended October 31; 1937, amounted to £30,451/1/11. By the addition of £22,799/11/8 brought forward from the preceding year, the balance to credit of profit and loss account was £53,250/13/7. The directors recommended that this sum should be applied as follows: To payment of a dividend for the year of 3J per cent., subject fo income tax, £24,500; to reserve (making a total of £70,000), £5000; to be carried forward, £23,750 13/7. The total loss on exchange in respect of remittances made during the year was £53,666/13/3. Of this, £20,621/13/3, being in respect of revenue, was debited to profit and loss account, and £33,045, being in respect of capital, was debited to Biver Plate exchange provision account, reducing the balance of this account to £271,955. The company’s assets in Argentina now stand in the balance-sheet at 17.56 dollars (paper) per £l, as against 17.38 dollars (paper) at October 31, 1936, compared with the free market rate at October 31, 1937, of 16.72, dollars (paper). The £271,955 balance of River Plate exchange provision account was appreciably 'more than was required at the time of closing the accounts to cover loss on exchange on the company’s assets in Argentina without recourse to the reserve, but in view of the uncertainty as to the movement of exchange rates the directors deemed it advisable to leave the whole sum in provision account for the present. The mortgage moratorium law. having been renewed by the Argentine Congress for two years from October 20, 1936, was still in force and continued to affect the company’s business. There had been no foreclosures during the year, the number of properties held being the same as at October 31, 1936. During the year terminal debentures were reduced by the repayment of £50,730 and the company continued to effect renewals of debentures at lower rates of interest than those /previously borne.

Bulolo Gold Dredging

Mr. Fred G. Dunn. attorney for Clutha Development, Limited, advise-- of the receipt of the following Bulolo production report:—For month of January the total cross production amounted to 15,0960 z. of bullion containing 10,40802. of fine gold from 862,800 cubic yards. Estimated working profit, 74850 z. of fine gold. The above production is equivalent to £91,070, and working profit to £65.493, on the basis of £B/15/- (Australian) per fine ounce of gold. The recently-completed No. 5 dredge is working at considerably less than normal capacity and will continue so for several months until a new driving motor is installed.

N.Z. Pound Abroad

Based on figures quoted by the Bank of New South Wales, the New Zealand pound, compared with its original par value, is qulvalent to approximately:—, 16/1 in London. £l/0/1 in Australia. 16/61 in U.S.A. 16/6} in Canada. 19/7 in France. 16/64 in Italy. 9/81 in Germany. .11/9F in Java. £l/8/1 In Japan.