ATHIGHLEVEL

Evening Post, Volume CXXVI, Issue 60, 8 September 1938, Page 12

ATHIGHLEVEL

ECONOMIC ACTJVITY

CONDITIONS IN AUSTRALIA

(Received September 8, 11.30 :a.m.)

SYDNEY, This Day. The directors of the Commonwealth Bank of Australia, in their report on economic and financial conditionsi .n Australia, state that despite the adverse developments abroad economic activity in Australia continues at a^ high level with the exception of a few. recession abfoa°d bontinSlthen its effect on Australia would be likely to extend. Export prices for Australia and the volume of imports have declined durine the past few weeks, according to hi Commonweaith Bank^s statistical summary. Preliminary figures lor June suggest that the increases; in corded in May were not maintain*! in most industries, the output of nondurable consumers' goods -being the orfy major class in which the decline from May to June was negligible. Expenditure on plant and equipment continued on a higher level than in 1937, especially in the heavy metal and engineering.industry, and.;mos^manufacturers regard prospects of the near future as satisfactory. The value of retail sales in-New South Wales and in Queensland continues to show increases compared with the corresponding months of last year. , Bank clearings in July were again I higher than in the previous year, and,, allowing for seasonal variation the amount of notes in the hands of the public continued its upward trend. Preliminary trade figures for July reveal that imports were slightly lower Rainfall, which is of vital economic importance to Australia, was good in July and brought relief to droughtstricken areas in New South Wales Victoria, and Queensland, and useful rains fell in South Australia and Western Australia and good general rains in Tasmania. SPREAD

MELBOURNE COMPANY'S

YEAR

Australian Foundation Investment Trust Ltd., Melbourne • (formerly V/ere's Investment Trust), reports for the year ended June 30 net revenue and balance brought forward £34,705, against £30,857 for last year. The directors recommend payment oi a dividend at the rate of 6 per cent, on the old shares and pro rata on the new shares, out of income earned in Australia and 2h per cent, wholly _ and exclusively out of income earned outside Australia and not subject.to tax in Australia, amounting to £<3U,U84; also to transfer to general reserve £2500; the balance of £2120 to be carried forward. It is remarked that "the year under review has proved a difficult one for investors," and reference is malfie to the repeated shocks given to markets by international political "crises which have tended to undermine the confidence of the business world. Further, a reversal of the trend of .business in the United States occurred late in 1937, and these and other factors have gradually affected the local market." The book value of investments, at cost or under, at the close of accounts, June 30, 1938, was £844,671 18s Id, while, at the same date, the value, calculated on market prices then current, was £729,613 2s Bd, or £115,058 15s 5d less than the book figure, showing a depreciation of 13.6 per cent, on the book value of investments, or 21.3 per cent, in relation to paid-up capital at the balance date. "This is not a permanent figure in so far as the value rises and falls from day to day in accordance with fluctuations in market prices," the directors explain. Investment fluctuation reserve and other reserves, including appropriations recommended, amount to £110,347 19s 9d, made up as follows: —General reserve, £12,500; investment fluctuation reserve, £63,958 9s; exchange fluctuation account, £31,769 4s sd; revenue carried forward, £2120 6s 4d, a total of £110,347 19s 9d. Changes made in investments during the year resulted in a net realised loss of *£1361 9s 6d, and this has been transferred to investment fluctuation reserve, which is thereby reduced to £63,958. The list of investments has been subdivided into sections according to location of respective share registers. The percentage of investments according to cost in the respective sections was as follows:—Australia and New Zealand, 49.3 per cent.; Great Britain, 26.7 per cent; United States of America, 21.1 per cent.; Canada, 2.4 per cent.; other countries, 0.5 per cent. The investments number 637 (based on cost value), and are spread in the following manner:—Bonds and debentures, 6 per cent; preference shares, 7.7 per cent.; ordinary shares, 86.3 per cent. The change of name of the company having been effected the shares of the trust are now quoted on the Stock Exchanges of Australia and New Zealand. ' • : DIVIDENDS DUE. Waitahu Dredge-^2d ' (3 1-3 per cent.) ~. , Sept. 9 Nemona Dredge—ld per share (No. 13) Sept. 12 Adelaide Steamship Co.—fl'aal 4 per cent., making 7 per cent, per „ annum Sept. 13 Huddart, Parker—interim, pref. 3 per cent., ord. 6 per cent. Sept. 15 Apex Investment, Mastcrton—halfyearly at 5 per cent, per annum Sept. 15 Broken Hill South—quarterly, 6d per share Sept. 15 Electrolytic Zinc—half-yearly, 9 per cent, or 15 per cent., per annum on both ord. and pref Sept. 16 Hackshalls, Sydney—interim 6d per share Sept. 17 Australian Foundation Investment Trust—6 per cent, per annum . Sept. 19 N.Z. Drug—interim, half-year, 3% per cent. V Sept. 20 Argo Gold Dredge—ld (No. 16) .. Sept. 21 North Broken Hill—final, 6d per share, equal to 60 per cent, per annum Sept. 28 Felt and Textiles, Ltd., Sydney— half-yearly 5 per cent, at the rate of 10 per cent, per annum' Sept. 30 Dunlop-Perdriau Rubber — final, pref. 5 per cc«&., ord. 3% per cent. Sept. 30 Bank of Australasii^-lnterim 3s Cd sterling per sh^e, at the rate of 7 per cent, pw annum ...... Sept. 30 British Tobacco —interim, 2 per cent. Sept. 30 United Provisions—*rd. S per cent., pref., final bait-year, 4 per cent. Sept. 30 Joseph Nathan and Co., Ltd., —halfyearly at 8 per <;ent. per annum, on preferred or&. Oct. 1 Myer Emporium, Melbourne —final 3 per cent, and litmus 3 per cent., ■ making 9 per tent, per annum Oct. 5 Howard Smith —quarterly pref. at 6 per cent, per annum Oct. 6 T. J. Kichards, Ltd., Adelaide —final pref. and ord., making 10 per cent, per annum Oct. 15 AUSTRALIAN KK2TTING PROFITS. The directors of Australian Knitting Mills, Ltd., in a preliminary statement, announced that the profit for the year ended July 31 was £18,848. This was struck after providing for all expenses associated with the inauguration of the full-fashioned hosiery plant, which is now in full production, including depreciation on this plant. Profit for 1936-37 was £19,070, and for the previous year £41,230, of which £28,500 was derived from shares in other companies. STOCKS AND SHARES. DAYSH & LONGUET, Stock and Share Brokers, Members Wellington Stock Exclwoge, Manchester Unity Building, corner Grey Street and Lambton Quay. Telephone 43-112. Telegrams "Stockshare." I