COMMERCIAL

Evening Star, Issue 21219, 28 September 1932, Page 5

COMMERCIAL

THE SHARE MARKET DUNEDIN STOCK EXCHANGE. No sales were effected on ’Change this morning. Inquiry for Bank of Australasia shares moved up to £9 17a, and a seller came on the market at £lO ss, while a buyer of Bank of New South Wales came on (he market at £2B, without any seller quoting for them. New Zoalands wore firm at £2 7s 9d, hut the buying offer had eased to £2 6s 9d. Commercials were on the market at 15s, without any buyer quoting. No buyers responded to selling quotations of £1 18s for E.S. and A. Banks and £1 2s 6d for Nationals of New Zealand, but buyers of Unions moved up to £7 16s, without any seller quoting. For National Insurances a buyer bid 14s 6d, but the shares were not obtainable under 15s. There was a wider market for Westport Coals, buyers not offering more than 12s, and sellers moving up to 13s. Dalgciys had an improved tone, buyers making an advance of 2s on yesterday's quotation and offering £3 11s, but sellers would not quit under £8 15s. National Mortgage shares were firm at £2, and a buyer came on tbe market at 7s less than that price. Buyers of Loan and Mercantile. shares dropped to £43, and there were no shares on the market. There was an inquiry for Australian Glass at £1 17s, but no sellers quoted, and British Tobaccos were firm at £1 Hs, with the best buyer offering £1 10s. The inquiry for Mosgiol Woollen Company shares moved up to £6 13s 6d, without attracting sellers. N.Z, Farmers’ Fertilisers were again on the market at 17s, but there was no inquiry above 15s. Waihi shares were inquired for at 16s 9d, with no seller under 17s 3d. Preference Electrolytic shares moved up to £1 6s, with sellers asking 9d more, while 4d separated buyers and sellers of the ordinary issue, the inquiry being at 16s 4d. Blackwater shares were obtainable at 19s 3d, but no buyer offered more than TBs for them. Quotations as under. — Buyers. Sehem.

DIVIDENDS DUE. Stock. Amount. Period. Date Bank of Australasia 3s interim Sept. 30 British Tobacco ... 3 3-sd, final, Sept. 30 North Broken Hill Is interim Sept. 30* Dunlop Rubber (ord.) 7 l-sd, final. Sept. lEleclrolytic Zinc (pref.) 9 3-5 d Oct. 27 Waihi Is interim Nov. 1. * Payable in Melbourne. tFor the half-year to June 50, 1931. CANADIAN GOLD NOTE ISSUE. Press Association—By Telegraph—Copyright. NEW YORK, September 28. (Received September 28, at 10 a.m.) A new issue of six million dollars Government of Canada one year 4 per cent, gold marketed here to-day promptly oversubscribed. VICTORIA NYANZA SUGAR. A cubic received by the Stuck Exchange Association from the Victoria Nyanza Sugar Company, despatched on September 24, reads':—“The estate suffered complete defoliation by an enormous swarm of locusts yesterday and to-day. The movement is now westerly.”

FOREIGN EXCHANGES. (British Official Wireless.) Press Association—By Telegraph—Copyright. RUGBY, September 26. Paris, franc to £1 88 7-32 Brussels, belgas to £1 • 24.9^ Oslo, kroner to £1 19 1 Stockholm, kroner to £1 19.471, Copenhagen, kroner to £1 19 9-32 Geneva, franc to £1 17.921, Berlin, reichmarken to £1 14.52^ Montreal, dollar to £1 3.821.-' New York, dollar to £1 3.45| Amsterdam, florin to £1 ... 8.61 Milan, lire to £1 67| Prague, kroner to £1 1161 “Vienna, schilling to £1 291; Helsingfors, marks to £1 232^ Belgrade, dinars to £1 252 j Warsaw, zlotys to £1 Madrid, peseta to £1 42£ Athens, drachmae to £1 572£ Lisbon, esendo to £1 110 Bucharest, lei to £1 580 *Rio de Janeiro, pence to railreisSl “Buenos Aires, pence to dollar ... “Montevideo, pence to dollar ... 30 Shanghai, pence to tael 21 3-16 Yokohama, pence to.yen 16 13-16 Hongkong, pence to dollar 16^ Bombay, pence to rupee 18 5-32 Batavia, florin to £1 * Nominal.

AUSTRALIAN STOCK EXCHANGES. Press Association—By Telegraph—Copyright SYDNEY, September 27. The, Stock Exchange to-day was fairly active, covering a wide range of securities, with only slight price fluctuations. The following sales were made:— Bank of New South Wales, £3l 10s; Commercial Bank of Sydney, £l7; Commercial Bank of Australia, 16s 9d; Colonial Sugar, £54 12s 6d; Mercantile Mutual Insurance, 18s 6d; New Zealand Insurance, 495; Burns. Phiip, 495; Adelaide Steam, 21s 6d; Goldsbrough, 27s Winchcombe, Carson, 245; Tooths, 33s 9d; Australian Glass, 44s Gd; British Tobacco, 34s 6d; Dunlop Perdriau, 16s 7J-d; Electrolytic Zinc, 18s 3d; Broken Hill Proprietary, 22s 3d; North Broken Hill, 755; Bonds—--4 per cents., 1938, £lOl 3s 9d; 1941, £lOl 6s 3d; 1944, £lOl 12s 6d; 1947, £99 16s 3d; 1950, £100; 1953, £IOO os; 1955, £IOO 12s 6d; 1957, £101; 1959, £lOl 15s; 1961, £IOO. MELBOURNE, September 27. Commercial Bank of Australia, 16s lid; Australian Glass, 44s 6d; British Tobacco, 34s 6d; Herald-Times, 54s 6d; North Broken Hill, 755; Mount Lyell, 23s 9d. BUTTER DUTIES AND QUOTAS. GERMANY A Nil HER NEIGHBOURS The tariff on butter and the question of the butter quota have in the last few months been the cause of great anxiety in German trade policies, writes a Berlin correspondent. At present every country exporting to Germany is restricted to 5,000 ton,? a year, irrespective of whether the country in question formerly sent much or little butter to Germany. The butter imported into Germany under this quota pays a duty of 50 marks per double hundredweight (metric). Every 100 kilogrammes in excess of this amount must pay 100 marks. But since the duties are calculated on a gold basis, countries with a debased currency, such as Denmark and .Finland, pay 86 marks for butter falling within the quota ; and the duties for imports in excess ot this reach the prohibitive figures of 126 marks for Denmark and 170 marks for Australia and Canada. This regulation has evoked sharp retaliatory measures against German exports in the butter-exporting countries. The warnings issued by the chambers of commerce against the continuance of this policy have increased, and now even the Rhenish mining industry, which in general is strongly in favour of a high protective tariff, has come out in favour of an understanding with foreign Governments in order to ease the pressure on German exports. The German Government has entered into discussions with the foreign Governments concerned, and has declared ‘its wdllingness to substitute for the rigid quota proportionate amounts based on the butter exports formerly sent to Germany by each country in question. Heretofore Germany has regarded herself as bound by the most-favoured-nation clause, but it is not a satisfactory application of that clause when Denmark, which exported 30,000 tons of butter to Germany in 1931, receives only the same quota as that given to Estonia, with an export of 6,000 tons. The adoption of the principle of proportional quotas has therefore resulted in a more favourable basis for negotiations between Germany and the larger exporting countries. This has been particularly noticeable in the case of Denmark, who obviously desires to reach an understanding with Germany, since she fears that the Ottawa Conference will give special preferences to New Zealand, Australian, and Canadian butter on the English market. Denmark even appears to have offered to make satisfactory compensation to the smaller exporting countries—in particular to Finland, to whom the 5,00(J-ton quota is assured by commercial treaty—if the new agreement with Germany can be reached in this way. The German Government is ready not only to introduce proportional quotas, but also to abandon the extra charges to meet currency depreciation, ami to introduce a uniform rate of duty for all countries.

But here difficulties with Holland arise. This country, as the second larger supplier of butter to Germany, was handicapped by tbo uniform quota, but benefited by the lower duties, for, since its currency is stable, Holland’s butter was not required to pay any valuta supplement, and thus enjoyed an advantage of Danish, Lettish,'and other competitors. Holland would agree to a uniform rate of duty if that rate were made low enough. But here there is strong opposition from German agriculturists. Jt is questionable whether an understanding can be reached with Holland—the negotiations have for tbo time been broken off—and whether in these circumstances an entirely now regulation of butter imports into Germany can become effective. Gorman butter duties and quotas have to-day acquired the same importance for the country’s whole trade policies as the duties on grain in pre-war days.

METAL MARKET. Press Association—By Telegraph—Copyright LONDON, September 26. The following are the official quotations:— Copper.—Standard, £35 8s 9d per ton (fall 6s 3d); forward, £35 9s 4Jd (fall 6s 10id). Electrolytic.—Spot, £39 (fall ss); forward, £39 10s (fall ss). Wire bars, £39 10s (fall ss). Lead.—Spot, £l3 2s 6d (fall 3s 9d); forward, £l3 3s 9d (fall 3s 9d). Spelter.—Spot, £ls 11s 3d (fall 3s 9d); forward, £ls 11s 3d (fall 3s 9d). Tin.—Spot, £153 5s (fall £1 3s 9d); forward, £154 18s 9d (fall £1 ss). Silver.—Standard, 17 13-10 d per oz; fine, 19 3-16 d. BUTTER AND CHEESE. Messrs H. L. Tapley and Co. Ltd., South Island agents for the AngloContinental Produce Company, London, have received the following cable:—“Butter, 109 s to 110 s per cwt; market quietly steady. Cheese— Coloured, 60s per cwt; white, 645.” FOREIGN FACTORIES. EFFECT OF TARIFF. There has been of late a remarkable falling off in the number of foreign firms who have been taking steps to establish branch factories in this country behind our tariff wall, states the ‘ Manchester Commercial.’ Not long ago inquiries regarding sites were reaching the department at the London Chamber of Commerce, which deals with them at the rate of thirty or forty a week, but the number has for the present fallen off sharply. So far as Germany is concerned the establishment of factories here is made more difficult owing to the restrictions on the export of capital and on the export of used machinery. All the same, one or two German concerns have announced their intentions recently. For instance, a Germany factory for the production of rubber shoes is to be started at Grantham, and a German firm is to manufacture chocolate and cocoa at York. Other recent developments are a Swiss-owned tyro valve factory at Birmingham and a factory for making household wooden articles (Austrian) at Hull. Of course, there have been important developments of the kind in Lancashire under the supervision of the Development Council, French and Belgian firms having, for example, established textile factories there. The London Chamber of Commerce reports that' up to the present about 160 foreign firms have either started manufacture in this country or are building factories. FARMERS AS BORROWERS. LACK OF CONFIDENCE. “Probably the most important barrier to bo overcome in the depression is the question of confidence. Legislators overlook the important fact that legislation that tended to destroy confidence or to prevent a revival of confidence also delayed recovery,” said Mr A. C. Davidson, general manager of the Bank of New South Wales, in addressing producers in Sydney. “If a farmer wants to enter into an engagement to-day how can the lender safely give him assistance after the experience of the last two or three years? He might enter into quite a reasonable contract to-day, and have it varied by force ■within a few months. “ One of the great difficulties in Australia,” Mr Davidson continued, “is that we have not been through some of the disastrous experiences of some of the smaller countries of Europe and other parts of the world. There are very few men living who have faced a situation where credit does not exist. But it is quite possible that could happen, and that such interference by the Legislature ■would put the business community as well as the producing interests of Australia in the position that they could not obtain credit. “All of us recognise that many farmers require to have their conditions ameliorated in view of the tremendous falls in export prices, but don’t let us drop the substance for the shadow. We must try to maintain confidence—build it up and pursue a policy to try to stop the drop in prices and restore the prices to the higher levels, and then we can take up the question of meeting individual conditions which have been made too hard owing to the drop in prices. “1 think all of you will realise that you can have plans offered to you to help the men who were out on the margins of wool and wheat production which will not help them in the long run, but prove a burden upon the individual and upon the community,”

GILLESPIE’S BEACH DREDGING, In a circular to shareholders the directors of the Gillespie’s Beach Gold Dredging Company Ltd. state that the machinery of the dredge of the ' how defunct Molyneux Electric Company was purchased at a 'very reasonable figure. This dredge was in operation on the Molyneux River some three miles below Alexandra up to within a couple of years ago, when operations ceased. For dismantling, the dredge had to be brought up to the dock at Alexandra. The river being at its winter level made the work more' difficult,' and consequently led to,greater expense than had the work been carried out in the summer, when the river is usually at a much higher level. The bulk of the machinery is in very godd' order.' Already thirty tons have .been sent by rail to Ross, and the balance required is in Dunedin having the necessary alterations made. Until the dredge was safely moored at ’ Alexandra the consulting engineer (Sir Roberts) could not prepare the necessary plans and specifications for tha building of a new dredge. However, the company was more than repaid for the delay, and, taking into consideration the easy nature of the ground to be worked,' the directors can assert with confidence that when erected, with tho addition of new buckets and top and bottom tumblers, the machine will be" equal to new. In the early stage some dredge parts were purchased from Messrs ’ M’George Bros, for £4OO. These being not required when the Molyneux Electrio machinery was bought, were sold at a profit. Plans and specifications for pontoons are now out, and tenders have been called to close on 30th inst. The planking for pontoons will be heart of totara, which has been purchased at a price delivered on the claim. The framing will be of hardwood, and the balance heart of red pine. Huts for tho workmen are now being erected on the property. : ‘ The following tenders have been accepted to date; —Messrs . Cory-Wright and Salmon, for electrical installation to give 250 h.p. on dredge. The transmission lino is to have extra heavy fittings to carry 400 h.p. if required for a second dredge. Messrs J. Sparrow and Sons Ltd., for alterations to machinery, new buckets, and top and bottom tumblers. Messrs Newman Bros, and Williams, for cartage from Ross to the claim. The total cost of electrical equipment, including erection of motors on dredge, new buckets and tumblers, etc., will amount to about £10,500. The only additional new machinery required will be silt wheels,, elevator, and shaking tables. _ The directors do not anticipate having to make another call until the end of November, when a further progress report will be issued, in which it is hoped to advise that the opinion expressed at the statutory meeting as to being able to commence operations within our capital will be justified.The dredge and tables are designed to treat a minimum of 130 cubic yards per hour, and with the power available this should be easily accomplished.

BANKING — Bank of Australasia £ s. d. £ a. d. (cum div.) 9 17 0 10 5 0 Bank of N.S.W. ... 28 0 0 — Bank of New Zealand Rank of N.Z. 2 6 9 2 7 9 (Long - ‘D”) 1 8 0 — Commercial Bank — 0 15 0 E.S. and A. Bank ... National Bank of ~ L 4 18 0 Now Zealand Union Bank of Austra — 4 2 6 iia Ltd INSURANCE— 7 16 0 0 National Tnsur. Co. 0 14 6 0 15 N.Z, Insurance Co. ... — 2 3 0 Standard Insur. Co. 2 6 6 — South British Ins. Co. SHIPPING— P. and 0. Deferred 2 18 0 Stock 1 0 0 1 2 6 U.S.S. Co. (prei.) ... COAL— 1 0 0 ~ Kaitangata Coal 0 1 Od par Westport Coal Co. ... LOAN AND AGENCY 0 12 0 0 13 0 Dalgoty and Co. 8 11 0 8 15 0 Goldsbrough,. Mort ... — 1 5 3 National Mortgage ... National Mortgage 1 13 0 2 0 0 (“B" Issue) •N.Z. Loan and Mer0 17 0 cantile (ord.) Wright, Stephenson 43 0 0 — (ord.) ... Wright, Stephenson 0 11 0 (prof.) MEAT PRESERVING— 0 13 0 Gear Meat Co N.Z. Refrigerating — 1 15 6 (paid). ... N.Z. Refrigerating 0 10 3 “ (cont.) MISCELLANEOUS— 0 3 7 0 3 9 Australian Glass British Tobacco 1 17 6 — (cum div.) Brown. Ewing 1 10 0 1 11 0 (prof.) — 0 19 0 Crystal Ice Co. 1 6 0 — D.I.C. (ord.) — 0 12 0 Dominion Rubber Donaghy’s Rope and Twine Kaiapoi Woollen 0 6 0 0 10 6 1 10 0 (ord.) Milburn Lime and 0 5 3 — Cement 1 6 3 1 7 3 Mosgiel Woollen Co. 6 13 6 — National Electric — 0 9 0 N.Z. Drug Co N.Z. Farmers' Fer2 17 6 — tilisers 0 15 0 0 17 0 N.Z. Paper Mills ... 1 1 0 1 1 6 ‘ Otago Daily Times ’ 1 17 0 — Wilson’s (N.Z.) Cement — 1 13 9 Woolworths’ (pref.) ... BREWERIES— 1 5 0 N.Z. Breweries Ltd. 1 8 6 1 10 0 N.Z. . Brewery Debs. 1 0 0 — Dunedin Brewery MINING— 1 0 6 1 3 0 Kawaran 1 0 0 0 0 0 8 Waihi .: Waibi Grand 0 16 9 0 17 3 Junction Electrolytic Zinc 0 3 0 (pref., cum div.) Electrolytic Zinc 1 6 0 1 5 9 (def. ord.) 0 16 4 0 16 8 North Broken Hill ... 3 5 0 — Mahakipawa 0 0 4 0 0 5 Kildare 0 1 3 — Okarito 0 8 4 0 8 6 Paddy’s Point King Solomon 0 4 11 — 0 0 1 9 0 2 Golden Point — 0 0 64 Blackwatcr Consolidated 0 18 0 0 19 3 Goldfields 0 8 0 — Gillespie’s Beach WAR BONDS. 0 0 1-3 p 0 0 2ip (Bonds quoted are £100 Bonds.) 1938 4-i p.c. Bonds ... 94 15 0 — 1939 44 p.c. Bonds ... 94 35 0 — 1938 41 p.c. Inscribed 94 12 6 95 0 0 1933 5f p.c. S.S. Bonds — 9910 0 1936 54 p.c. Bonds... 99 0 0 — 1936 Si p.c. Ins. ... 1937 51, p.c. Bonds 99 0 0 99 5 0 (February) 1937 54 p.c. Bonus 99 7 G - (September) 1937 p.c. Inscribed 99 7 6 (February) 1937 54 p.c. Inscribed £9 0 0 99 7 6 (September) 99 0 0 99 7 6