COMMERCIAL & FINANCIAL

Evening Post, Volume XCII, Issue 40, 16 August 1916, Page 4

COMMERCIAL & FINANCIAL

Evening: Post, Wednesday. From local enquiries made by The Post it would appear that the succoss of the £8,000,000 war loan, now before the public, is assured. It is urged in some quarters that the date of the closing of application^ now less than seven days, is too diorfi to enable the small investors making up their minds about talcing up the £1 and £10 stock. However, it is "recognised that tho Minister can extend the closing date for the receipt rif subscriptions. Some displacement in bank deposits is expected as a result of the loan, and possibly a firming of lending rates for a time, until realisations of tho season's produco mako tlroir influence felt-

DOUBLE INCOME TAX —In tho course of his address at tho annual meeting of shareholders, held in London, tho chairman of the National Bank of New Zealand made some interesting remarks on the question of income tax. He said : No less a Bum than • £48,000 was paid iast year in income tax by the National Bank— £18,000 in New Zealand, and £21,750 in London. The chairman (Mr. 1?. Logan) warned shareholders that tho board would have to pursue a cautious attitude in future in respect to the payment of dividends free of tax. He explained that the income-tax law in Now Zealand was somewhat intricate, but the net result was that the amount on which income tax was calculated was double, and then the rate was doubled in addition. In London, tho 1916 payments were more than double those.pale! in 1915. The extra tax paid more than equalled 3 per cent, of the paid-up capital, and there was littlo likelihood that tho tax would diminish or remain stationary. The country would havo to meet its liabilities when the war ended, and only a very bold man would prophesy a. reduction in income tax. Mr. Logan said they would cheerfully moet what was required to prosecuto this bitter war to its only possible conclusion, namely, victory for us, with peace and honour. No sacrifice would be too great to keep our enemies from us, and if it were necessary to double their contribution they would do so without a murmur, it was evident, however, that shareholders in the near fuiure must contemplato either the payment of their dividends subject to tax, or they must accept a lower dividend, or possibly both. Tho bank could not pay tax and dividend free of tax. If there should be a small reduction in profit, or an increase in the tax, shareholders must expect a diminished retarn to them. He appealed to shareholders to support, vigorously both here and in New Zealand, the movement for abolition of the payment of double income tax, for, unless something was done speedily, they would be faced with an income tax of 3s 8d in the £ in New Zealand, and Ss in tho £ in England, or 8s 8d in all. They did not object to pay tax in Now Zealand on the New Zealand profits, or tax in England on the English profits. But it surely was inequitable that the bank should have to pay English tax on profits earned and first taxed in New Zealand.

WOOL.—Any available wool for local eale is being held for the sale of crutchings, to be held here the first week in September. At the last Sydney sales 10,000 bales were catalogued. Support was given by Bradford and Japan, and to some extent by local manufacturers. Some uncertainty still prevails among New Zealand wool mea ac to whether the Dominion Government will requisition wool in the interests of the Imper/al authorities. At tho moment sufficient meaeurea to prevent supplies reaching the enemy appear to have been token by the British Board of Trade. No wool is now allowed to leave the United Kingdom for any destination. Germany is believed to be making desperate efforts to secure wool through neutrals, as there is no commodity of which she is more short than wool at the present time. The embargo on all exports, of course, excludes the United States—a powerful competitive buyer of wools particularly suitable for American manufactures. Locally some wool men fear that rather too much concession is being made to Bradford in this respect, and the consequence may be a reduction of values, but not necessarily a reduction in the cost of the manufactured material for either civilian or military requirements.

HEMP.—Tho market is firmer for August-September business. Free on board prices to-day are approximately ac follow:—Good fair, £38 10s per ton; high fair, £37 10s; low fair. £36 10s. Tow is steady at the following prices: — No. 1, £16 per ton; No. 2, £15; No. 3, £14. Millers and exporters are manifesting some uneasiness as to shipping space, from and including November, when the wool will be coming along. A possible stoppage of the industry on this account has been mentioned, unles6 more provision than is in prospect is made for shipping, the fibre away In these circumstances it is rather difficult to consider business beyond October shipments.

DAIRY PRODUCE.—Subject to Goternrnent requisition of the whole or a portion of the output, sales have been .ma-do in the South and North Island of cheese at Bd, Bid, B|d, 8 13-16, and, it is reported, at 9d per pound for the whole season. _ The Prime Minister (at the time of writing) has not divulged the reply of (■■he Imporial Government to the offer of cheesomakors to sell the whole output of the Mason .at Bgd. It is thought that the Imperial Go\-ermnonfc's idea, of the value of cheese is rather. below Bj-d, and that a counter offer has been mad-e, and wilj be communicated to the factories at the moment London current values for choes'3 are 94s to 96s por cwt., white cheese being Is por cwt. dearer. Sales of butter for August-September shipment have been made up to as high as 17d per pound, but the tendency of factories for beyond that period is to consign rather than sell. The prospects of high prices for butter shipped during the present export soason now about to open are exceedingly bright, and most tempting offers would ha-vo to be made to factories to sell. So long as" the demand by.London is so keen it is inevitable that prices of butter for the local trade will be high. In the present state of the market London is willing to pay f.o.b. London fully fd per pound more than the current wholesale ra-ts far the local trade. Pieports by mail from Australia, show that "choicests" a-re selling in Sydney at 144s 6d; in Melbourne, 130s to 150s; and choice Queensland at 170s, with imp-roving supplies; Brisbane 140s for first grade, Government price paid for all surplus above local requirements. , .

PRODUCE.—Free-on-board prices oi produce to-day ar© approximately as follow:—South Island ports: Flour, £12 per ton; oatmeal, £16 per ton; pollard, £6 16s per ton; bran, £3 15s; oats, 2s 9d to 2s lOd per bushel; fowl wheat, Is 4d per bushel (according to .sample); potatoes, £7 10s per ton; chaff, £4 12s 6d per :ton. Auckland: Maize, new, 4s per bushel;_ old, 4s Id. Australian onions are bringing £8 15s per ton locally. Advices from Australia are to tho effect that prices for both wheat and flour for export to New Zealand show a. hardening tendency.

GENERAL GOODS.—A local house has received cabled advices to the effect that in consequence of poor fishing no first-grade British Columbia, salmon (sockeye) will be available for-shipment to this, market, but the other qualities will bo obtainable. From Colombo a cablegram has been received reporting a fall in the pries of desiccated coconut of 5s per cwt. during the week. "Quaker" rico lias advanced lls per onec. Mazagan eannry seed has made a Blight rise. New Zea-land-made candles have been raised by manufacturers £d , par pound in consequence of heavy increases in cost- of raw materials. Califorakiu, dried apricot arut prune prices show a small drop in price; but freights front San Francisco to New Zealand have risen six dollars per (on. Calcutta cables a rise in the price of lentils of £3 per ton, and Hongkong an advance of' 30s per ton on peanuts. A local house representing a big: British packing firm has bsen advised" that the prospects of fuller supplies of tinned herrings are improved. Germany liavinq declared carbide of calcium contraband, difficulty is expected in obtaining further wpplifift frora Kaiw^yi