Commerce, Mining, & Finance

Evening Star, Issue 21515, 13 September 1933, Page 7

Commerce, Mining, & Finance

THE SHARE MARKET DUNEDIN STOCK EXCHANGE Sellers of Bank of New South Wales shares increased their price to £3? 15s, but no buyers responded. Bank of New Zealand (Long “ D ” Issue) had better inquiry at £1 I3s, and a seller came on the market at £1 14s. E.S. and A Banks were firm at £5 17s 6d, with buyers, offering the slightly better price of £5 11s. A buyer of Ualgetys came on the market at £lO 10s, without any support from sellers. British Tobaccos came in for better inquiry at £1 15s 3d (cum dividend). A buyer of New Zealand Drugs was on the market at £3 Bs, without sellers being interested; while Paper Mills were a shade easier at £1 8s 6d. Buyers of ‘ Otago Daily Times ' advanced their bid to £2 3s, and Wilson’s Cements were inquired for at the improved price of £1 15s. New Zealand Newspapers, which have been in demand at £1 6s for some time were wanted this morning at £1 7s, without a seller quoting. New Zealand Breweries cased to £1 18s 9d, and buyers were interested in Tooth’s Breweries at £1 18s. The ordinary and preference issues of Moturoa Oils were available at 3s 6d for the former and 5s for the latter, but there was no inquiry. Waihis had a 2s margin between buyers and sellers, the inquiry being at £1 ss. The remainder of the quotations in this section remained about the same as yesterday. SALES. Reported.—Milburn Lime and Cement, £1 10s (ex. div.).On ’Change.—Okarito, 12s 4d (2); King Solomon, 3s 7d. Late Sale Yeetorday.—New Zealand Refrigerating (cent.), 9s. Reported After .the Call.—Bell-Kilgour, Is

(Bondi quoted are £IOO Bonds.) 193845 3i p.c. In 101 0 0 1935-52 54 p.c. Ins. ... 101 0 0 193943 3i p.c. Ins. ... 101 0 0 1939-52 31 p.c. Ins. ... 101 0 0 194143 34 p.c. Ins. ... 101 0 0 1941-52 34 p.c. Ins. ... 101 0 0 - 1940 4 p.c. Bonds ... 100 10 0 1940 4 p.Q. Ins. ... 100 10 0 1940 4 p.c; Bonds ... 100 10 0 , 1946 4 p.c. Ins. ... 100 10 0 1949 4 p.c. Bonds ... 101 5 0 1949 4 p.c. Ins. ... 101 5 0 - ■ 0 ________ DIVIDENDS DUE. Stock. Am’nt. Period. Date. Huddart, Parker (ord.) 6d, interim Sept 14 Huddart, Parker (pref.), 7 l-sd. interim Sept. 14 Okarito ..' Is fifth Sept. 16 Kaiapoi Woollen 11 5-8 d final Sept. 16 N.Z. Partners’ Fertiliser Is final Sept. 20 Broken Hi.i South Ist Sept. 22 N.Z. Drug Is 4 4-5 d interim Sept. 23 North Broken Hill Is Sept. 29 Dunlop Perdriau Rubber (pref.) Is final Sept. 30 Dunlop Perdrieu Rubber (ord.) 9 3-5 d final Sept. 30 King Solomon 3d second Sept. 30 British Tobacco _ 3 3-8 d interim Sept. 30 Bank of Australasia 3s 6d* interim Oct. 6 Electrolytic Zinc (pref.) ... Is 7 l-5d final Nov. 2 Waihi Is interim Nov. 1 tAustralian currency. “Less British income tax, 5s in £l,

EXCHANGE DN LONDON FEELING IN AUSTRALIA The recent substantial rise in wool values in Sydney, which is accompanied by forecasts of further enhancement, is causing consideration to be given to the question whether Australian exchange on London will be maintained at the existing high level of 25 per cent. It is computed that with wool at the prices established at the Sydney sales £12,000,000 will be added to the value of the present clip, even when allowance is made for lower production. It is not certain that bankers in Australia will be willing to pay £125 for £IOO in London if prices of wheat and other exports also advance. Fixation of Australian exchange is in the hands of the Commonwealth Bank, whoso board will shortly hold its next monthly meeting in Sydney. How Argentina has fared with her exchange control scheme is shown in a special article appearing in the official publication of the British Board of Trade on July 20 last. The experience of the Argentine is worthy of note by Australia and New Zealand and other countries. Argentina has been off the gold, standard since the end of '1929, though at that time still possessing large reserves of gold. Approximately half of those reserves were shipped in 1930 and 1931, chiefly to pay debt service and to prevent exchange depreciation. In 1932 the outflow ceased, and at the end of that year the stock of gold in the Conversion Office was equivalent to 584,000,000 paper pesos or £43,000,000 covering 43 per cent, of the circulation. Meanwhile the Exchange Control Commission established in October, 1931, continued to function, and, fluctuations were restricted to the movement of other currencies on New .York, the gold pesos being pegged to the United States dollar at 171 to 100 throughout the year. At par one gold peso equals 0.965d01. The rate is now based on the French franc. Less than a month before the establishment of the control of the gold peso, which is equivalent at par to 47d, had touched 29Jd. On the eve of the control, following the abandonment of the gold standard by the United Kingdom, the rate had recovered to 33fd. The control raised it again, and at the beginning of it had reached 41 5-32 d. After relapsing to 36gd in March and recovering to 44 3-16 d in November it finished the year 23-32 d above what it was at the beginning. • The operation of-the control inevitably caused great inconvenience to. foreign suppliers and to the foreign controlled public utility companies, as well as to private individuals desiring to remit money abroad. It has seriously affected New Zealand fruitgrowers who have sold their produce to Argentina, but cannot get the proceeds. It reacted with special severity on firms having payments to collect for goods supplied prior to the establishment of the control, owing to the system adopted by the commission of applying available exchange first to current needs, so that remittances in respect of precontrol transactions became almost impossible. The scarcity of export bills became more acute as the year progressed, and it is calculated that by the end of December the accumulated sum awaiting remittance was not far short of 400,000,000 pesos. ' It is estimated that this calendar year the available foreign exchange will not cover more than 75 per cent, of requirements. RABBITSKIN SALE The Dunedin Stock Agents and Woolbrokers’ Association reports as follows; — Fair-sized catalogues were again forward for yesterday’s rabbitskin sale, the bulk of the offering being spotted and outgoing sorts. There was again a good demand on American account for bucks, and the _ market opened with prices for outgoing sorts particularly, well in advance of last sale’s rates, but eased later. Generally, bucks can bo quoted very firm on last sale’s prices. There was _an improved demand for does at prices 3d .to 6d higher than last sale. All other sorts were firm. The following is the range of prices:— Summer broken, 6id to lOd; autumn broken, 13d to 15^d; secona winter broken, 14d to 18d; first winter broken, 18d to 21jd; runners, 4d to 6d; summers, 6id to 7sd; early winter bucks, 46d to 48d; early winter does, 24cl to 28d; first spotted winter—bucks 46d to 58d, does 24d to 28d; second winter bucks, 61 dto 69Jd; second winter does, 32d to 34Jd 'first winter bucks, 74cl to 79d ; first winter does. 43d to 44 ; prime' bucks, 76d to 83Jcl; prime docs, 4Sd to 50d; outgoing—bucks 34d to 49-id, docs 2(kl to 24d; spring—bucks 21d to 28d, does 14d to 14|d ; milky. 13d to fawn, 6d to 16d; winter fawn, to 30d; summer black, to 6d; autumn black, to lOd; first winter black, 19d to 22d; second winter black, 17d to 20d; hareskins, 4d to 9d ; horsehair, lOd to 12d. THE HIDES MARKET Press Association—By Telegraph- Copyright. LONDON, September 12. (Received September 13, at 10 a.in.) Hides. Meatworks, dry salted: Queensland—3s to 451 b, 6£d; 30 to 40, 6id; 25 to 35, 6d; 20 to 30, 6d. New South Wales —6|d, 6|d, 6id, 6Jd. Wet salted: Queensland, 50 to 601 b and 40 to 50, 41 d; New South Wales, both sd; Victorian abattoirs, both 4|d. METAL MARKET Press Association—By Telegraph—Copyright. LONDON, September 11. The following are the official quotations : Copper,—Standard, £35 6s 3d per ton; forward, £35 11s 3d. Electrolytic.—Spot, £3B 15s; forward, £39 ss. Wire bars, £39 ss. Lead. —Spot, £ll 15s; forward, £l2 2s 6d. Spelter.—Spot, £lO 15s; forward, £l6 15s. Tin.—Spot, £214 13s 9d; forward, £214 13s 9d. Pig Iron.—Home trade, £3 2s Gd; export, £2 12s 6d. Antimony.—British, £39 10s; foreign, £23. Molybdenite, £2 Is per unit. Wolfram, 17s 9d. Silver.—Standard, 18Jd per oz; fine, 19 9-16 d.

AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, September 12. On the Stock Exchange the market was buoyant, with greater activity in bonds, banks, and company shares. British Tobacco, Colonial Sugar, and Commercial Bank of Sydney registered good gains. The following • sales were made : Commercial Bank of Sydney, £18; Commercial Bank of Australia, 10s 7UI; Bank of New South Wales, £32 ss; E.S. and A. Bank, £5 10s; Queensland National Bank, £5 11s; Colonial Sugar, £6O; Adelaide Steam (ex div.), 23s 9d; Howard Smith, 11s 2d; Burns, Philp, 52s 9d; British Tobacco, 375; Dunlop Pordriau, 18s 4-}d; Goldsbrough,-Mort, 29s 9d; Carlton Brewery, 395; Tooth’s, 39s Cd; Toohey’s, 23s 9cl; Australian General Insurance, 10s 6tl; Anthony Hordern, 10s 7d; Anthony Hordern (pref.), 19s 9d ; Automatic Totalisators, 14s 3d; David Jones, 29s 6d; Henry Jones', 37s 10|d; Standard Cement, 15s 3d ; Lustre Hosiery, ’ 14s 9d; Winchcombe, Carson, 27s 9d; Wilcox, Mofflin, 9s 8d; United Provisions, 8s 4d; Mount Morgan, 475; Bulolo Gold, 91s; Bulolo Deposits, Is 7d; Kuala Kampar, 8s; Broken Hill Proprietary, 38s 9d; South Broken Hill, 60s 3d. MELBOURNE, September 12. Goldsbrough. Mort, 29s lOJd; Electrolvtic Zinc. 23s 6d; Commercial Bank of Australia, 10s 6d; British Tobacco, 36s 3d; ‘Herald and Times, 41s Cd; Taranaki Oil, 3s 3d. COURSE OF THE YEN STATEMENT BY YOKOHAMA BANK In view of the various statements recently appearing in the newspapers, as well as those made by certain traders, bankers closely concerned with the Japanese exchange position feel it necessary to refute the allegations. A statement from the Yokohama Specie Bank, Ltd., Sydney, goes briefly through the sequence of circumstances existing during the past eighteen months. Following in the wake of England going off the gold standard, Japan was forced to take similar action on December 13, 1931. The immediate effect on yen currency was very small, and tho rate was maintained around 2s OJd against England (2s 0 9-16 d being the mint par), and 36 cents to 3 1 cents (49.85 cents being tho mint par) . Since the beginning of February, 1932, however, when the Sino-Japaneso conflict occurred in the area of Shanghai, in anticipation that the inflation of currency would be inevitable to meet the expenditure an enormous volume of speculation against tho yen followed' from all parts of the world, particularly from Shanghai speculators. Frequent reassuring statements issued by the Japanese Government and bankers failed to stem the declining tendency of the currency, and at tho. middle of Juno, 1932, the yen rate was as low as Is 6|d on London and 274 cents on America. Alarmed by this unprecedented decline of the value of tho yen, the Japanese Government proclaimed on June 30, 193,2. a Capital Flight Prevention Act, which, in effect, prohibited the flight of capital from Japan, as well as tho exchange speculation, tho object being obviously to check the further decline of the yen exchange. This Act had a certain sobering effect on the market, and the yen was maintained steadily until the middle of August, when the intervention of the League of Nations on tho Manchurian question gave the yen. another setback. Subsequently the rumour that the League of Nations was likely to declare an economic blockade of Japan, coupled with the substantial amount of the budget deficit of tho Japanese Government, aggravated tho situation further, and again the yen began to fall rapidly under selling pressure from abroad, and at tho end of November tho rate dropped below Is 3d against London and 2U cents against America. Tho position was very critical. The Yokohama Specie Bank Ltd. came into the market, and in order to check the decline began to sell dollars as well as sterling freely, and succeeded in maintaining tho rate on America, between 20i cents to 21 cents for certain periods. In spite of the efforts of both the Governments and the bankers, tho rate on London in Japan fell to the level of Is 2d at the beginning of January, 1933. During the three months following the yen fluctuated between Is 2d 3-16 d to around Is 3d against England. On April 26, 1933, the Japanese Government enacted an Exchange Controlling Art' to replace the aforesaid Capital Flight Prevention Act. This Act empowered the Government to check tho decline of yen currency by more rigidly controlling exchange speculation, and also prohibiting export of goods without negotiating bills through banks. At the present time, we are yet unable to toll the full effect of this Act, as it has not been enforced long enough, but as far as tho exchange rate is concerned, it is gradually recovering, maintaining an average rate of Is 3d and 26J cents of late. From the forgoing it is evident that both tlve Japanese Government and tho bankers there used every measure in thoir power to cheek the depreciation of the yen currency, and tho allegation that they deliberately lowered the yen currency has not a vestige of truth in it. Force of circumstances, both internal and external, was too strong, and brought down the yen value to tho low level of to-day. It must bo reinembored that Japan is in a position to purchase enormous quantities of raw materials from abroad for her industries, and the decline of the yon has a very serious adverse effect upon such purchases. THE APPLE MARKET The Otago Provincial Fruitgrowers’ Council Limited advises that the High Commissioner’s cabled report for tho week ended September 9 on the Lon* don fruit market is as follows; Apples: Trade slow at about Is below last week’s rates.

DAISY PRODUCE Market reports received by the South Island Dairy Association from the Now ZenUnul Produce Association, London, read as follow:—Butter: Finest, 09s to 100 s; firsts, 98s to 995; Danish, 118 s. Cheese; White, 53s to 545; coloured, 555. Both markets arc firm. THE DOLLAR Press Association—By Telegraph—Copyright. LONDON, .September 12. (Received September 13, at 11 a.m.) The dollar is quoted at 4.58 J. LEAD MARKET Press Association—By Telegraph—Copyright. LONDON, September 12. (Received September 13, at 10 a.m.) Lend.—lmports, 22,695 tons (Australian 9,397); exports, 857. PRICE OF FINE GOLD Press Association —By Telegraph—Copyright. LONDON, September 12. (Received September 13, at 11 a.m.) The latest quotation for gold is £6 7s 7d per oz.

THE SEARCH FOR COLD BELL-KILGOUR COMPANY The statutory meeting of the BellKilgour Gold Mining Company is to be held nest week. The statement mentions that Mr J. A. Roche, “having completed his contracts with the company, is now entitled, if he so desires, to act as a director. He has not yet done so, but will probably join the board after the statutory meeting.” The total number of shares alloted was 700,000, of which 20,000 fully-paid were allotted to the vendors and 110,000 to the promoter in part payment for the options acquired by the company. The total amount of cash received in respect to the contributing shares was £27,103 2s Gd. The statement of receipts and payments shows receipts at £27,130. On the payments side mining property is set down at £21,500, preliminary expenses £1,731, wages £331, plant, tools, and shed £134, and salaries £216. Cash in hand totalled £2,900. ALEXANDER MINES REPORT The Alexander Mines report for the month of August states: — No. 3 north drive (eastern block): A cross-cut was put out Bft into the hanging, or eastern wall, of the eastern block. At this point stone oft in width was passed through. This stone has been driven on 62ft and averages 3ft in width for the distance driven. The lode is hard and solid, and has been driven on further north than any stone previously worked in this level. The, north face shows 3ft of stone in the bottom, but slightly narrower in the back. Values, 84s 4d a ton. No. 3 intermediate north: This drive was continued, and at 166 ft north of the winze stone 12ft in width came in. This has been driven on 12ft, and has continued to improve until now there is reef 3ft in width showing. This stone is going strong underfoot, and considering it being the lowest point where the M'Vicar block has been discovered, a fair quantity of ore may be opened up from here later on. No. 4 north drive: A cross-cut was put into the eastern wall 18ft, and a promising looking track passed through.. The main drive was turned to cut this track and passed through it without meeting with any solid stone. Owing to the lode in No. 3 making flat benches to the eastward; this level now appears to be too far to the westward to be on the main reef track. With the intention of proving the ground to the eastward, a crosscut has been started and driven 10ft. The face shows good country with a fair amount of water making. , Stuping has been carried on as usual, the lode in most of the faces being small. GOLD-SAVING METKODS THE HYDRAULIC PI'LSATOIL The efficacy of a method of recox oring gold by moans of a hydraulic pulsator on the claims of the Macro x 'uonua Goldfields Development Company, seven miles from Duntroon, was demonstrated by the company’s consulting engineer, Mr W. Morgan Gimson, in conjunction with Mr L. E. Sinclair, one of the consulting engineering staff of the Mining House (New Zealand) Ltd., to the directors of the company : ast week-end. The pulsator is not a new method of separating metals from quartz, etc., as it has been extensively used in connection xvith lead-zinc mining, but it xxdll be applied for the first time to gold mining in New Zealand on the Maercwhonna claims. Worked on the principle that gold is heavier than lend, the main part of the pulsator consists of three sieves on different levels. On each of those sieves is a bed of lead shot. After the .face has been sluiced it is run over these sieves, xvater at the same time being pulsated up through the holes so as to alloxv the gold, which is heavier than either stone or lead, to have a free passage through the material down into a hutch underneath the sieves. As the lead shot at each pulsator settles on the sieve it prevents anything lighter than itself from entering the hutches, which contain only xvater, gold, and sometimes a little heavy grey sand. To separate the sand from the gold is, of course, a simple matter by using an amalgamation barrel. The chief advantages of the pulsator over the jn-esent method of recovering gold by moans of a series of tables, it is claimed by Mr Gimson, xvho has adapted the machine to Nexv Zealand conditions, are that, first, it is cheaper to install; secondly, it saves a considerably higher percentage of gold; thirdly, it is self-cleaning, whereas the tables have to be cleaned by manna) labour; fourthly, it lias a very high capacity, being capable of dealing wiih something like sixty yards of material an hour, and, lastly, it xvill savh gold in dirty and slimy xvater, which is not the case xvith tables.

The directors of the company—Messrs J. S. Mac Gibbon (chairman), T. W. Perry, and W. G. M‘Donald, of Christchurch, and Dr Ulrich, of Timaru —all

expressed themselves as being highly satisfied with the demonstration. The smallest particles of gold were saved by the pulsntor, and it was noticed that very little gold even reached the third hutch, showing clearly the efficiency of Iho machine. Following the demonstration. tho directors, under the guidance of the engineers and Mr Evan Williams, tho mine superintendent, inspected the water races and tho dam sites. Good progress has been made with the core of the first dam, and the diversion tunnel has been completed. The second diversion tunnel for the upper dam is in the course of construction, and the site is being prepared. These dams play an important part in the company’s scheme, for it is by means of these that an adequate supply of water will be obtained.

7id. Buyers. Sellers. £ s. a. £ d. BANKING— Bank of N.S.W. ... — 3215 0 Bank N.Z — 2 9 3 Bank of N,Z. ( Long 1 13 “D ” 0 1 14 0 Commercial Bank 0 16 i 0 16 6 B.S. and A. Bank ... 5 11 0 5 17 6 National Bank of 0 N.Z 4 5 INSURANCE— National Insur. Co. 0 17 7 — N.Z. Insurance Co. ... 2 15 0 — South British Ins. Co. 3 11 3 - - Standard Ins. Co. ... 2 19 0 3 0 9 SHIPPING — P. and O. Def. Stock 1 3 3 — U.S.S. Co. (pref.) ..•■ 1 3 6 — COAL— Westport Coal Co. ... 0 12 6 0 13 0 LOAN AND AGENCY— Dalgely and Co. 10 10 0 — National Mortgage 2 6 0 — N.Z. Loan and Mercantile . (ord.) 2 10 0 N.Z. Guarantee Corp. 0 7 6 — Wright, Stephenson (ord.) 0 12 9 0 15 0 Wright, Stephenson 0 13 (pref.) 0 SKAT PRESERVING— N.Z. Refrigerating 0 18 (paid) 6 — N.Z. Refrigerating 0 9 0 (cont.) 0 8 11 Southland Frozen Meat 0 (paid) 2 10 6 2 11 Southland Frozen Meat 1 6 (cont.) 0 — MISCELLANEOUS— r British Tobacco (cum div.) 1 15 3' — Broken Hill South (cum div.) ... ... 3 1 0 — Bru > Woollen Co. ■ (ord.) — 1 1 0 Colonial Sugar Co. ... 58 0 0 — 8 Dominion Fertiliser ... " — 0 1Z Dominion Fertiliser 99 0 Debentures 0 -— D.I.C (pref.) 1 1 0 — Dunlop Perdriau Rubber _ ... 0 17 10 Electrolytic Zinc 6 (def. ord.) ... ... 1 3 3 1 3 Kaiapoi Woollen 0 13 26 0 (pref.) ..I M'Leod Bros 0 0 Mount Lyell 1 1 9 1 2 0 N.Z. Drug Co 3 8 0 — 6 N.Z. Paper Mills 4 Otago Daily Times ’ 2 3 0 1 8 Regent Theatre 0 18 9 0 19 6 Smith and Smith 0 13 (pref.) Wilson’s (N.Z.) 3 — 1 15 Cement 0 — N.Z. Newspapers 1 7 0 BREWERIES— N.Z. Breweries Ltd. — 1 18 9 Dunedin Brewery ... 1 2 6 — Tooth’s Brewery 1 18 0 GASChristchurch 1 7 0 — OIL— Moturoa (ord.) — 0 3 8 Moturoa (pref.) — 0 5 0 MINING— Kawarau 0 0 6 — Waihi 1 5 0 1 7 0 Kildare — 0 2 G Okarito (cum div.) ... 0 12 4 0 12 5 Paddy’s Point 0 4 6 0 5 3 New Cornish Point (6d paid) ... — 0 0 6i Xing Solomon Golden Point 0 3 6 0 3 a '— 0 0 3 Blackwater Gillespie’s Beach — 1 18 0 0 2 2 0 2 21 Waitahu .... 0 7 5 0 7 Golden : Sands. ... ... 0 3 3 0 3 8 Big River 0 1 7 0 I 9 Mount David — 0 2 8 Nokomai , ... ... ... 0 3 1 0 3 3 Freshford , , ... 0 0 9 0 0 10 Central Shotover ... — 0 1 9 Bell-Kilgour 0 1 7 0 1 8 Bell-Hooper ... ... 0 1 04 0 1 1 ' Ozenbridge Shotover 0 0 9i 0 0 10 .WAR BONDS-