Commerce, Mining, & Finance

Evening Star, Issue 21505, 1 September 1933, Page 5

Commerce, Mining, & Finance

METAL MARKET

LONDON, Aiigust 30. The following are the official quotations:— Copper.— Standard, £36 Is IOJd per ton; forward, £36 6s lO^d. Electrolytic.—Spot, £39 los; forward, £4O 15s. Wire bars, £4O 15s. Lead. —Spot, £l2 10s; forward, £l2 11s 3d. Spelter. —Spot, £l7 10s; forward, £l7 11s 3d. Tin. —Spot, £219 8s 9d; forward, £219 8s 9d. Pig Iron.—Home trade, £3 2s 6d; ■export, £2 12s 6d. Antimonv. —British, £39 10s; foreign, £23 ss. Molydbenite, £2 Is per unit. Wolfram, 17s 3d per unit. Silver. —Standard, 18Jd per oz; fine, 21 9-16 d.

MOSGIEL INDUSTRIAL CO-QFERA-TIVE SOCIETY LTD.

Mr D. Connor presided over the twelfth annual meeting of the Mosgiel Industrial Co-operative Society Limited. There was a good attendance of shareholders. The report and balance-sheet for the six months ended June 30 was read and discussed and finally adopted. It showed a satisfactory volume of business for the period. The new office-bearers are:—President; Mr D. Connor; treasurer, Mr H. Johnstone; secretary, Mr W. Morton; committee—Messrs J. Young, F. Snicaton,, J. Hicks, T. Milner, G. Rutherford, and G. -Gibson.

CREDIT SYSTEM

FUNCTIONS OF BANKS What is credit? The National Bank of Australasia Ltd. answer©’the question in a June summary of Australian conditions. _ . “Credit,” the bank states, “is confidence. It is the medium of exchange which improves upon the ancient system of barter, and makes possible the trade of the world.” ' “To create credit,” the summary continues, “ there must be the ability to provide and the desire to lend on the one hand, and the Heed to borrow on the other. To make it available there must be belief on the part of the provider that what is to be loaned will be safeguarded, and it or its equivalent ultimately received in reutrn. It must be obvious that without these factors credit is impossible. Yet to-day critics and experimentalists, through ignorance or intention, close their eyes to a fundamental law, and endeavour to impose on the community monetary reforms diametrically opposed to the inherent instincts' and rights of human nature.

“ Banks trade in money .on credit in the same way .as the butcher, the baker, the' grocer, and, 7 - in fact, " every ‘ other form of commercial enterprise trade in goods, on credit. The extent to which they all enjoy the confidence of their creditors (in the case of the banks, the depositing public, and in that of the commercial undertakings, the suppliers) determines the volume of business , they are able to handle in the nature of advances in the one case and sales on credit in the other. But, apart from this qualification, there is another factor which, to-day particularly, plays an important part in determining the flow of, credit,, and that is the need or absence of need to borrow. If the public lack ,the confidence to buy it perforce must moan that industry has not the capacity to absorb credit that it would nave if business was progressing normally. It is also obvious that no well-conducted undertaking will borrow money unless it can bo put to reproductive purposes. Yet critics of banking cry out, sometimes in ignorance, though generally designedly, for expansion of credit. Apparently they would have the banks lend their depositors’ money indiscriminately and without any regard to its safety, forgetting in their ignorance, or perhaps remembering in their design, that credit would bo destroyed as deposits were withdrawn by a public viewing with ever-increasing alarm the operation of such a policy by the banks. It is well known that banks are looking for avenues into which they can safely pass their depositors’ money. Indeed, they have said so. To banks advances mean revenue. Furthermore, they are keenly desirous of doing all they can, consistent with sound principles, to assist in the rehabilitation and development of the country. It is a fact that a prosperous country means a prosperous banking system. DO BANKS CREATE CREDIT? “Considerable prominence has been given by critics of banking to reported statements made by the Macmillan Committee and a prominent English economist to the effect that banks create deposits and therefore credit, and it is said by those critics that banks accordingly are not restricted in their issue of credit—that it means to them but a book entry. It should be noted, however, that the economists quoted were referring to a system different from our own. In London when an. advance is granted the amount is immediately credited to a loan account in the name of the borrower, and in this manner, it is true, deposits are increased. Interest, incidentally, is charged on the full account of the loan during its currency. In Australia, however, the borrower is given an agreed-upon limit up to which he may draw, with the advantage that interest is only charged to him on the daily overdrawn balances.

“ The main trouble in the world today is the inability of the people of the earth freely to exchange their commodities. The necessary cure is not stimulus, but tho removal of obstructions. _ It is noteworthy that certain politicians are the principal critics of the banking systems. But is it not time that the world awakened to the fact that political expediency has largely contributed to its present ills, and by an appreciation of tho elementary principle that nations cannot sell if they do not buy, emerge from the maze of theory and rhetoric in which it is at present lost? The financial system is sound at heart, and awaits but the opportunity to provide the credit necessary in the conduct of a normal condition of trade and industry. But until the factors responsible lor the lack of buying confidence in the peoples of the earth and their inability to sell have been removed credit will be unable to play its full part in providing the means of commodity exchange*’^

CUSTOMS RETURNS

AUCKLAND The Customs revenue of £202,802 at Auckland in August was the highest monthly return for nearly three years. Auckland’s heavy yield, following the collection of £182,671 in the preceding month, indicates a substantial improvement in the import trade. With one exception this year’s monthly totals have surpassed the figures for the corresponding periods of 1932. The total for the first eight months of this year is £1,419,491, compared with £1,302,945 for the similar period last year. The combined motor spirit and tyre duty for August was £38,130, compared with £37,304. The sales tax for August was £42,448, and the total to date is £224,015.

WELLINGTON The following are the comparative figures for the month of August of revenue collected by the Customs Department at Wellington;—

CHRISTCHURCH

The Customs duties collected at Christchurch during August were £8,821 less than in August, 1932. The figures are as follow:

In the eight months that have elapsed of the calendar year the Customs returns show an increase of £82,628. Petrol tax shows an increase of £6,663 and beer duty a decrease of £167.

PRICE OF FINE GOLD

Press Association—By Telegraph—Copyright. LONDON, Augut 31. (Received September 1, at 1.30 p.m.) Gold is quoted at £6 9s 7d per oz. THE DOLLAR Press Association—By Telegraph—Copyright. LONDON, August 31. (Received September 1, at 1.30 p.m.) The dollar is quoted at 5.35.

LOAN CONVERSION

ANOTHER BRITISH SCHEME Press Association—By Telegraph—Copyright. LONDON, August 31. Tho ‘ Daily Express ’ understands that preparations are being advanced for launching a Government conversion loan, probably of £300,000,000, during September. Possibly it was popularised by the Chancellor announcing the prospect of an income tax reduction of 6d.

MEAT MARKETING

HOME SALES PROBLEM [Pen United Press Association.] WELLINGTON, August 31. A general discussion on the problems of the marketing of New Zealand meat at Home took place to-day at the annual meeting of delegates to tho New Zealand Meat Producers’ Board. The Acting-chairman (Mr T. A. Duncan) said ho had received the most favourable reports concerning the recent shipment of chilled beef. Ho considered that the success of the experiment had opened up a new trading possibility which would greatly benefit the New Zealand producer. He hoped that at least 30 per cent, of the cattle could he sent abroad. This would have a beneficial effect on prices. Mr J. H. Joll (Havelock Noil).} said the cattle business was in a low condition. A rise of Id per lb would be a most needed lift.

Mr M. M‘Donnell (Hatuna) said that in his district there had been a tendency for certain freezing companies to buy low-grado lambs in the yards. That was a policy which would have a detrimental effect on the prestige of New Zealand lamb on the Home market.

Mr Duncan said the grading question was a difficult one, but tho board did not entertain third-grade lambs on any account. Anything below the hoard’s standard was rejected by the hoard’s grader. Thousands of lambs had been rejected as being below export standard.

One delegate said that the freezing companies put rejected lambs on the retail market and undercut the butchers. This was endorsed by other delegates. Mr F. S. Bowen (Gisborne) said he considered that the reductions obtained by tho hoard in cold storage costs in London had not been sufficient in view' of tho profits that some of tho storage companies were making. Mr Duncan said tho chairman of the board (Mr D. Jones), who was at present in London, was seeking a further reduction in cold storage rates. Mr Bowen said that in view of the fact that owing to the quota system there was a surplus tonnage in tho world, he considered that larger reductions in freight charges might he obtained. Mr Duncan said that when tbc agreement was made the effects of flu? quota had not. boon felt, and surplus shipping was not then available. He pointed out that the shipping companies were experiencing difficulties owing to a drop in tho volume of trade, and many vessels were poming out ip ballast*

AUSTRALIAN STOCK EXCHANGES

Press Association—By Telegraph—Copyright. SYDNEY, August 31. Ou the Stock Exchange there was a rather marked reaction to-day, and issues which rose sharply simultaneously with the rise in the wool values turned downwards. The market was inclined to pause and take stock of the situation. The following sales were made:— Bank of New South Wales, £32 7s Gd; Commercial Bank of Sydney, £l7 16s; Queensland National Bank, £5 ss; Colonial Sugar, £59 7s 6d; Dalgetys, £9 10s; Mercantile Mutual Insurance, 18s; Australian Provincial Assurance, 10s lid; Associated News, 8s 7d (pref., 18s 9d); Australian Gas (A and B), £7 ss; Howard Smith, 12s; Goldsbrough, Mort, 29s ltd; Gordon and Gotch, 36s Cd; Tooths, 395; Toohcys, 23s Gel; Commonwealth Wool, 19s; Millaquin Sugar (ex div.), 275; Victoria Nyanza, 14s; Australian Iron and Steel (pref.), 15s 6d; David Jones, 28s; John M'Grath, 26s 9d; Greater J. D. Williams, 6s 9d; Drug Houses of Australia, 20s; Anthony Hordern, 10s 8d (pref., 19s IJd); Meggitts, 20s 43d; Winchcombo, Carson, 28s Gel; Wilcox, Mofflin, 9s 8d; Bulolo Gold, 94s Cd; Bulolo Deposits, Is 9d; Mount Morgan, 445; Broken Hill Proprietary, 37s 3d; South Broken Hill, 61s 6d; North Broken Hill, 85s. MELBOURNE, August 31.

Huddart, Parker, 31s; National Bank (£lO paid), £l3 6s; Electrolytic Zinc (pref.), 33s 9d; Goldshrongh, Mort, 295; Dunlop Perdriau, 18s 3d; ‘ Herald and Times,’ 44s 6d; Howard Smith, 12s Id.

LONDON STOCK EXCHANGE

THE SEARCH FOR GOLD

MAREWHENUA DEVELOPMENT COMPANY Mr W. Morgan Gimson, A.R.S.M., consulting engineer of the Marewhenua Goldfields Development Company Ltd., reports that the tail race tunnel has been driven 270 ft. This progress is not quite up to schedule, as for the past fortnight difficulty has been experienced in shooting the rock, which is tho worst yot encountered. • Mosquito Race.—Work has proceeded on the main race satisfactorily, and is now nearly completed, the total cost to complete this raco being estimated at £4OO. Cook’s Race,—Approximately two miles of this raco have already been widened, and now that tho Mosquito race is nearly completed this work will bo pushed on. The excavation of the lower dam has been completed, and a start made to place the concrete core. The masonry is now up Bft, and arrangements arc being made to transport the pipes from the field for tho purpose of sluicing down material for filling. Tho foundation of the dam is of solid rock. Excavation has been commenced for the core of the upper dam, the foundation of which is solid blue rock. The diversion tunnel for this dam is new in 40ft. Work on the dams and races is being regulated so that full use may be made of the first spring water available. It is interesting to note that a prospector who received permission to “ fossick ” at the outlet of Golden Gully has boon winning some nice coarse gold, thus further confirming the indications met with during prospecting that coarse gold exists on this field in addition to tho general fine gold. The heaviest piece of gold won so far by the prospector weighed l-Rlwt.

HUME PIPE COMPANY

£7,186 FCR THE YEAR [Pun United Puess Association.] WELLINGTON, August 31. A cable message received by the Stock Exchange Association to-day from the Hume Pipe Company states that the net earnings for the year ended Juno JO last were £7,186 after providing for income tax. No dividend is recommended.

BEET SUGAR

Press Association—By Telegraph—Copyright. LONDON, August 31. (Received September 1, at 11 a.m.) Ueet sugar: September 5s Oid. DIVIDENDS DUE. Slock. Am'nl. Period. Dale. Standard Insurance Is 3d (Inal Sept. 5 Huddart, Parker (ord.) 6d, interim Sept 14 Huddart, Parker (prof.), 7 l-sd, interim Sept. 14 Golden Sands 3-sd, 3rd monthly, Sept. 14 Okarito Is fifth Sopt. 1C Broken ili.l South Ist Sept. 22 tAuatralian currency.

1933. 1932. £ £ Customs duty ... ... 182,869 17.932 Motor spirit ... ... 55,017 43^067 Tyre tax 1,602 1,031 Beer duty 4.209 4,688 Sales tax ... 40,865 — For the eight mouths the figures are; — 1933. 1932. £ £ Customs duty ... 1,261,138 1,380,741 Motor spirit 455,025 390,506 Tyre tax 11,219 12,692 Beer duty 32,808 39,957

1933. 1932. £ £ Net Customs ... 66,533 75,354 Beer duty ... 7,584 7,567 Petrol tax ... 16,124 15,173 Tyre duty' 556 433 Sales tax ... 19,713 —

Press Association—By Telegraph—Copyright. LONDON, August 31. (Received September 1, at 11 a.in.) Imperial Consols, 2} p.c £74 0 0 Funding Loan 111 10 0 War Loan (assented) 100 0 0 ♦Conversion Loan, 34 p.c 93 0 0 Victory Bonds, 4 p.c 108 17 6 Commonwealth, 6 p.c., 1931-41 ... 107 0 0 Commonwealth, 5£ p.c., 1922-27 ... 101 5 0 Commonwealth, 3£ p.c., 1936-37 ... 101 2 6 New Zealand, 6 p.c., 1936-51 ... 106 0 0 New Zealand 4 p.c., 1920 105 5 0 Now Zealand, 3| p.c., 1940 New Zealand, 3 p.c,, 1945 100 0 0 93 0 0 New South Wales, 64 p.c., 1930-40 102 7 6 New South Wales, 6' p.c., 1930-40 100 10 0 New South Wales, 34 p.c., 1933 ... 100 0 0 New South Wales, 3 p.c., 1935 ... 94 5 0 Victoria, 6J p.c., 1930-40 103 11 3 Victoria, 6 p.c., 1932-42 103 5 0 Victoria, 44 p.c., 1940-60 102 17 6 Victoria, 3£ p.c.. 1929-49 95 7 6 Victoria, 3 p.c., 1920-40 89 0 0 Queensland, 6 p.c., 1930-40 106 17 6 Queensland, 5 p.c., 1940-60 101 0 0 Queensland, 3 p.c., 1922-47 South Australia, 34 p.c., 1939 ... 89 5 0 100 1 3 South Australia, 3 p.c., 1918, or after 74 7 6 West Australia, 6 p.c., 1930-40 ... 101 ,5 o West Australia, 34 p.c., 1920-35 ... West Australia, 3£ p.c., 1915-35 ... Tasmania, 34 p.c.*", 1920-40 100 10 100 2 0 6 99 o o Tasmania, 3 p.c., 1920-40 96 0 0 *Kx interest.