Commerce, Mining, & Finance

Evening Star, Issue 21632, 30 January 1934, Page 7

Commerce, Mining, & Finance

THE SHARE MARKET

DUNEDIN STUCK EXCHANGE Very little activity was again noticeable this morning, a reported sale of Mount Lyells constituting the only recorded busin6ln' the banking section New Zcalands appeared to be firmer, but the other quotations showed little alteration. Several of the insurance companies shares ■were for sale. Standards provided the only buying quote . -Kaitangata Coals are in steady demand at 21s, while Westports have persistent buyers at 14s 6d. : Dalgetys were fractionally firmer, and there was a buyer of Trustees, Executors at 50s, but no seller. A live interest was manifested in meat preserving stocks. Gears were wanted at 235. and Refrigeratings appeared firmer, while the- Southland issues also improved. ■. In the miscellaneous section Crystal Ices jumped up to buyers at 355, with still no seller. Mosgiel Woollens were for sale at a price not attractive to buyers. More interest was displayed in gold mining shares, though very few chapges were recorded in the quotations. Waitahus showed a margin of one penny between buyers and sellers. ‘ Reported Sale.—Mount Lyell, ( £1 6s.

DOLLAR AND FRANC

Press Association—By Telegraph—Copyright,

LONDON, January 29. (Received January 30, at 11 a.m.) The dollar is quoted at -I.9SJ and the franc at 79 13-10.

AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright. SYDNEY, January 29. The Stock Exchange is quiet, values in ail departments displaying a tendency to ease. The following sales were made:— Bank of Adelaide, £0 7s Cd; Colonial Sugar, £65 ss; Australian Provincial Assurance, 11s sd; Howard, Smith, 15s 9d; Burns, Philp, 54s Cd; British Tobacco, 37s 6d; Associated News, 21s Cd (pref., 22s lid) ; Tooth's, 44s 3d; Toohey’s, 27s 9d; Dunlop Perdriau, 21s 3d; Goldsbrough, Mort, 35s Cd; Windieorabe, Carson, 31s Cd/; Electrolytic Zinc, 275; David Jones, 37s Cd; Anthony Hordern, 16s; Standard Cement, 18s 9d; Australian Iron and Steel (pref.), 21s; Drug Houses of Australia, 18s; Lusti’e Hosiery, 22s 7Jd ; Mount Morgan. 70s; Broken Hill Proprietary, 44s 3d; Bulolo .Gold, £6 15s; Kuala Kampar, 15s. MELBOURNE, January 29. The Exchange was closed owing to the Anniversary Day holiday.

AMERICAN PULICY , TRENCHANT CRITICISM Purchase of gold by the American Administration outside the United States was strongly condemned by 1 rofessor 0. M. W. Sprague and led to his resignation of the post of executive assistant to the United States Treasury.l In his letter to President Roosevelt, on relinquishing his post, Professor Sprague referred to “ his fundamental disagreement with the monetary policies recently adopted by the Administration. He wrote; — “I am opposed to the present policy of depreciating the dollar through gold purchases in foreign markets for two reasons. I am convinced that this policy will prove ineffective in securing a speedy rise in prices. This is not because of any inability to depreciate the dollar. When a Government announces its determination to depreciate its own currency it can certainly accomplish that result and without the necessity of acquiring any considerable amounts of gold in other countries, since no sensible persons will desire in such circumstances to acquire more of . the currency. .... “ But mere depreciation of the currency in relation to the currencies of other countries will not bring about a general rise in prices in the absence of widespread distrust of the currency at a-time when there is large excess -plant capacity and millions of unemployed wage-earners. An advance in prices that has any promise of being maintained requires the development of conditions that will permit a sustained demand for more labour and more materials, with resultant increase in the production of goods and services and a higher standard of living. RECOVERY MUST COME FIRST. “ There is nothing in the depreciation of the dollar to induce this increased demand for materials and labour. A few prices will rise, particularly those of commodities such as cotton, that 1 are- exported in large amounts. A few other commodities that are not exported, but arc subject to speculative transactions in organised markets, may advance in price somewhat, but the advance will rest on an unstable. foundation, since there is nothing in the depreciation of the dollar to increase domestic consumption. . ' . “ Doubtless, given time, a deprecated dollar or a devalued dollar will yield a higher price level. But this will only come when the desired trade recovery has been realised. _ Our immediate concern is to extricate ourselves from the depression rather than with the course of prices after that happy event. . \ “ Finally, and of overshadowing importance, the present policy threatens a complete breakdown of the credit of the Government. The recovery, programme involves expenditures far in excess of current revenues. “ Certainly as njuch as two billions of dollars must bo borrowed during the remainder' of the fiscal year. Bonds, including- Government bonds, are _an unsatisfactory investment at- a time when a Government is determined to depreciate its currency. Already many issues of Government securities have dropped below par, including the issue that was brought out in October. FEARFUL OF DISTRUST. “ I believe you are faced with the alternative either of giving up the present policy or of meeting of Government expenditure with additional paper money. You will then no doubt secure a rise in prices, for you will be faced with the distrust of the currency, already manifest in a growing flight from the dollar, hut extending into a frantic desire to hold anything other than currency or securities yielding a fixed interest return. “We are a mercurial people. The memory of post-war _ depreciation of currencies in Europe is still, fresh. We have recently experienced distrust of banks spreading like wildfire throughout the country. A similar wave of currency distrust threatens. , “ I have retained my present position for many weeks, hoping against hope that wiser counsels might prevail. I have now reached the conclusion that there is no defence from a drift into unrestrained inflation other _ than an aroused and organised public opinion. It is for the purpose of contributing as I mav to such a' movement that, with feelings of profound disanpomtment, I sever my connection with your Administration!” / , DIVIDENDS DUE -

THE SEARCH FOR COLD GEOPHYSICAL SURVEY DEVELOPMENTS AT WALK A) A. The rich returns -.secured in the last few months by the King Solomon mine at Waikaia (Southland) have directed a good deal ol attention to the auriferous deposits in that district. The Department of Scientific Research recently concluded a survey ol areas adjourning King Solomon mine lor New Zealand Mining Investments to ascertain if the King Solomon deep Jead continued in that direction. The survey indicates the probability of the lead running in a south-westerly direction from the King Solomon claim through that of Aiming Investments Ltd. tor eight to nine miles towards W'endon. As a result of the department s survey a notice appearing in the ‘ Gazette ’ of last week exempting, subject to all existing mining privileges, the area embracing some hundreds of acres and indicated by the geological survey as , that through which the deep lead runs, New Zealand Mining Investments has engaged the department to conduct a geophysical survey bn the seismic method on its area, and the experts are now on the ground to commence this work immediately, ,'i this test confirms the promise indicated by the geological work already undertaken, it will be one of the most important developments in alluvial mining experienced so far in this country, as the belt concerned is a very'extensxve one.

IH MANUHESEKIA VALLEY The extensive investigations in Manuherekia Valley, Central Otago, have shown it to be a formation similar to the Rand in South Africa, from which exceedingly rich returns have been secured, and which is still being extensively and profitably worked. Much goicl—many millions—have already been taken from this valley, but only the edges of the field have been worked. The bulletin by Mr E. 0. Maepherson, of the Geological Department, issued last year, contains much important data, and a subsequent geophysical survey indicates that, the deposit is gold-bearing. Further investigations are necessary before any reliable estimates can be made, and at the present there is no justification for excited forecasts. Caution is required, and further .prospecting before allowing imagination to find the inches of Croesus in this valley.—The ‘ New Zealand Financial Times.’ ■ JL I—L. MAHAKIPAWA WASH-UP The Mahakipawa wash-up for the week was 430 z of alluvial gold. BLACHWATER MINES The following development work has been carried out durum the quarter ended December 31 at the Blaokwater Mines:— ■ ■ ■ No. 11 level was extended 188 ft, of which 80ft was on low grade stone, while the remainder averaged GJdwt over 22in. No. 12 level was advanced 207 ft on reef averaging 15dwt over a width of 39in. A total of 138 ft of rising was done in reef averaging 14dwt over width of 21in. " * One hundred and thirteen feet of whizing was done, averaging 22dwt over a width of 29in. The Prohibition shaft was sunk 133 ft, and 20ft of plat cutting was completed. The hydro-electric plant is working quite satisfactorily. During the period 10,982 tons were crushed for a yield of £29,436, taking gold at 120 s per fine ounce. Working expenses were £16,398, whilst development and shaft sinking amounted «to £4,290. On capital account £5,189 was spent. EELL-KCOPER RETURN The secretary of the Dunedin Stock Exchange has received advice that the wash-up for the week ended January 26 at the Bell-Hooper mine amounted to 350 z lOdwt. GILLESPIE'S BEACH DREDGE The return from the Gillespie’s Beach dredge for the week ended January 27 was 40oz 6dwt. The dredging time was ninety-nine hours, this being devoted to opening out operations, GOLDS!! POINT GPIiPAHY The secretary has received the following telegram from the mine manager of the Golden Point Gold Company:— “ Rise connected with upper workings last evening; good ventilation.” This refers to the Home reef which previous reports stated was being driven on in ore and mineralised formation averaging approximately 6ft. HOKOMAI RETURN The secretary of the Nokomai Gold Mining Company Ltd. reports a further return of 87oz 12dwt, making a total return for the paddock of 3970 z 7dwt. This last return includes a nugget of 16fdwt. The yardage for this paddock is 47,040 cubic yards, and the gold recovered more than confirms the boring results. No. 3 paddock is now completed, and a start has been made on paddock No. 4.

PRISE OF GOLD Press Association—By Telegraph—Copyright.. LONDON', January 29. (Received January 30, at 10 a.m.) Fine gold is quoted at £6 12s SRI per oz. America purchased the whole £BOO,000 offered.

.‘ Quotations as under .Buyers. Sellers. £ s. d. £ 8. d. BANKING— { Bank of Australasia 12 15 0 — Bank of N.S.W. ... - 34 0 0 34 10 0 11 Bank of New Zealand 2 8 6 —. Commercial Bank ... — 0 18 3 National Bank of New > Zealand 44 0 — . Union Bank of Aus10 tralia Ltd. ... ... 10 0 0 3 6 INSURANCE— National' Insur. Co. — 0 19 0 South British Insurance Co — 3 18 0 Standard Insur. Co. 3 1 0 3 2 0 SHIPPING— * Huddart. Parker 9 (ord.) ... 1 12 — ' Huddart, Parker (pref.) ... 1 4 0 — U.S.S. Co. (pref.) ... 1 4 9 — COAL— •- , ; Kaitangata Coal 1 1, 0 — Westport Coal Co. ..; 0 14 6 — LOAN AND AGENCY— • Dalgety and Co. ... 10 8 0 _ ■ / Goldsbrough, Mort ... — 1 16 0 N.Z. Loan and Mer0 0 cantile (ord.) 59 10 0 65 Trustees. Executors, and Agency 210 0 — • Wright, Stephenson I (qrd.) ... '... ... 0 17 6 MEAT PRESERVING—’ ; Gear , Meat Co. 1 3 0 — N.Z. Refrigerating (paid) ... ... ... 0 19 9 — N.Z. Refrigerating (cont.) ... 0 9 1 0 9 5 ' ‘Southland Frozen Meat i (paid) ... 3 4 0 3 5 6 r Southland Frozen Meat (cont.) 1 12 0 — i' South Otago Freezing 5 18 0 MISCELLANEOUS— ' British Tobacco 1 16 9 — Broken Hill Propty. 2 2 0 — Brown, Ewing (ord.) 0 19 0 — Bruce Woollen Co. (pref.) ... ... ... .'0 18 0 — Crystal Ice Co. 1 15 0 — !, D.I.C. (ord.) 0 14 6 — 1, D.I.C. (pref.) 1 2 6 — ! Dominion Fertiliser — 0 17 3 i; Dominion Fertiliser I Debentures ...' ... 102 10 0 — i Dominion Rubber ... 0 18 6 — Dunedin Stock £x- ■ change Proprietary 2 5; 0 3 5 0 : D hr lop Perdnau r Rubber \ ... ... ... 1 1 0 — \ Electrolytic Zinc (pref.) _ ... 1 14 6 — Electrolytic Zinc 6 6 (def. ord.) 1 6 ,1 7 Kaiapoi Woollen (ord.) 0 10 0 0 11 6 Kaiapoi Woollen 0 '■ (cont.) • '... ... 0 •2 3 3 6 Mosgiel Woollen Co. M‘Leod Bros. ... ' ... — 0. 10 5 0 27 10 — 0 Mount Lyell ... ... 1 5 10 1 6 National Electric ... — ■a ' 9 6 0 N.Z.' Drug Co. ' ... 3 14 6 — N.Z. Fanners’ Fertiliser ... — 0 18 3 N.Z. Paper Mills ... ‘Otago Daily Times’ 1 8 0 — 2 6 0 — Smith and Smith (pref.) - 1 7 0 — BREWERIES— N.Z. Breweries * 2 0 0 — : Staples’ Brewery 1 8 9 — Tooth’s Brewery ... — 2 6 0 OIL— 0 Moturoa (ord.) — 4 0 Moturoa (pref.) — 0 4 6 UINING— Waihi ... ... 1 9 6 — Waihi Grand Junction ••• "0 4 4 — Mahakipawa ... ., 0 0 li 0 0 24 Kildare — 1 0 J. :u ■ Okarito ... ... .... 0 9 0 9 6 Paddy’s Point ... ... — 0 4 0 New Cornish Point ... — 0 0 64 ..Golden Progress — 0 1 6 King Solomon ... ... 0 5 6 £.0 3 8 Golden Point 0 0 2 f 0 0 3 ' Golden Dawn ... ... 0 1 4 ‘‘Alexander ... ... 0 17 0 -- . Gillespie’s Beach 0 2 3 0 2 5 Waitahu 0 6 6 0 6 7 Big River ... — 0 1 0 : Mount David — 0 2 0 Npkomai . ... ..1 ■ ... 0 2 0 — ‘ ..Freshford • ... Q 0 1 0 0 3 - Upper Shotover — 0 1 9 ; Central»Shotover — 9 0 1 0 .'Bell-Kilgour ... ... ' 0 0 d 1 0 ‘ Bell-Hooper . ... ... 0 0 9 ‘‘Osenbridge.' . 0 0 9 Bendigo Goldlight ... 0 0 9 Nevis Diesel ... ... — 0 1 0 Addison’s Flat ... ... 0 2 4 — ' Charlston ... ... ... — 0 2 0 . Glenroy 0 0 6j N.Z. GOVERNMENT LOANS(Bonds quoted'are £100 Bonds.) 3A p.c. Stock, 19381943 101 0 0 — 3j j.c. Stock, 1939101 0 0 3J Stock, 1941101 0 0 31 p.c. Stock, 1938102 1952 — 0 0 3i p.c. 'Stock, 1939102 u 0 .34 p.c. cstock, "isi'i101 0 1952 0 — 4 p.c. Bonds, Jan. 15, 6 1940 ... 101 7 — ■ 4 p.c. Stock, Jan. 15, 6 1940 ... 101 7 — 4 p.c. Bonds, Feb; 15, • 1946 102 0 0 — 4 p.c. Stock. Feb. 15, 102 0 1946 0 — 4 p.c. Bonds, April 15, 101 1949 0 0 — 4 p.c. Stock, April 15, 101 0 1949 0 — 4 p.c. Bonds, June 15. 1955 100 15 0 — 4 p.c. Stock, June 15, 1955 ... , 100 15 0

Australian Provincial Assurance— ■Ian. p.c. per annum 30 British Tobacco (Aust.)—Interim; pref., quarterly, p.c. per Jan. 31 annum (less property taxi Union Bank—Interim at the rate of 4 p.c. per annum, free of English income tax, equal £2 Jan. 31 9s 7d per cent. '« Commercial Bank of SydneyInterim, 6 p.c., 6s 3d a share Jan. _ N.Z. Insurance —Is a share — Wellington Trust, Loan, and Investment Co. —Final, 3 per cent., making 5i per cent, per annum ... Feb. 2 N.Z. Refrigerating Co.—4 p.c. and Feb. bonus 1 p.c 3 Wellington >, Gas—Annual, 8 per Feb. cent, per annum 6 Auckland Gas—Interim, 2J. p.c. Feb. 6 Commercial Bank of Australia — Interim; preference at rate of 4 p.c. per annum; ordinary at rate of 5 p.c, per annum in Feb. Australian currency 7 Queensland National Bank—Interim. at the rate of 4 per cent, per annum, free of State Feb. 14 and Federal income tax National Mortgage—5 p.c. per anMar. 1 num Christchurch Gas—Final, 3 p.c. Feb. (7 l-5dl ,. - - Electrolytic Zinc (pref.)—8 p.c. per annum Mar.