Commerce, Mining, & Finance

Evening Star, Issue 21717, 11 May 1934, Page 7

Commerce, Mining, & Finance

AMERICAN WHEAT PRODUCTION Press Association—By Telegraph—Copyright. WASHINGTON, .May 10. (Received May 11, at 10.30 a.m.) The winter wheat production for 1934, forecast to-day by the Department of Agriculture, was 461.171,000 bushels, a decrease of 000,000 on the forecast of a month ago. BUTTER AND CHEESE Press Association—By Telegraph—Copyright. LONDON, May 10. (Received May 11, at 10 a.m.) Butter 1 is firm and in good demand. Danish, S4s to 86s. Choicest salted New'.Zealand, 75s to 765; Australian, 745. Unsalted New Zealand, 76s to 775; Australian, 745. Cheese has more inquiry. New Zealand white 44s 6d, coloured 43s 6d; Australian, none offering. DOLLAR AND FRANC Press Association —By Telegraph—Copyright, LONDON, May 10. ;(Received May 11, at 10.30 a.m.) The dollar is quoted at o.llj and the franc at 77 5-16. PRICE OF GOLD Press Association—-By Telegraph-Copyright. LONDON, May 10. (Received May 11, at 10 a.m.) Fine gold is quoted at £6 16s per oz. BEET SUGAR Press Association—By Telegiapli Copyright. LONDON, May 10. ' (Received May 11, at 10 a.m.) Beet sugar: June, 4s 9d. BRITAIN'S DAIRIES HEAVY FOREIGN PURCHASES Mr George G. Mitcheson, M.P., writing to the London * Daily Express ’ regarding dairy imports from foreign countries and the dominions, refers to a recent official statement in the House, which said that:— During 1933 we imported from foreign countries with which wo have made no trade agreements since the passage of the Import Duties Act specifically mentioning butter, no less than 1,065,OOOcwt of butter alone, equivalent to 281,353,000 gallons of fresh milk. “ No account was taken,” writes Mi 1 Mitcheson, of: our huge 1 "imports of foreign condensed milk. “This, surely, provides . scope for solving our surplus milk problem without recourse "to the current highly mischievous criticisms of New Zealand, which country, after all, is merely striving, in accordance with the spirit of the Ottawa ■ Conference,' to capture a greater share of the British market from the foreigner. • “ In addition to this equivalent of 281,000,000 gallons of fresh milk, we allowed Denmark and Sweden jointly to send us, over and above the minimum quota provided by our trade agreements' with them, butter equivalent to a further 68,000,000 gallons of fresh milk.” • BANK DIVIDENDS LONDON AND AUSTRALIAN COMPARISON In a comparison of bank interest rates charged in London and, Australia, the National Bank of Australasia stated recently the different bases upon which banking business was conduced in the two countries, and contended that the banks’ .profits margin in Australia was in no way excessive, in spite of the low interest and discount rates of the British banks and the low open money market rates in London and other large financial centres. A financial authority writing to the Melbourne ‘ Argus ’ confirms the opinion of the bank, remarking that during the course of his visits to England he had been particularly struck with the differences in deposit and overdraft rates between .the British and the Australian banks. It was remarkable, lie said, that when the depression set in the dividends of Australian banks fell away rapidly, being mostly less than half the rates paid up to 1929, while throughout the dark days in Great Britain the larger banks maintained their rates of dividends of up to IB per cent. In the Loudon ‘ Bankers’ Magazine ’ for February the net profits and amounts of dividends of six of the principal British banks are set out. These confirm our correspondent’s statement. For twenty-one years up to 1933 the dividend in “ A ” shares in Barclay’s Bank has been maintained at 10 per. cent., and that on “B ” shares, for fifteen years at 14 per cent. Lloyd’s Bank paid 16 2-3 per cent, on “ A ” shares for four years up. to 1929. ami gradually dropped to 12 per cent, in 1933. On “B” shares Lloyd’s have paid 5 per cent, for the last ten years. Martin’s Bank paid 16 per cent, in 1929 and 1930, and since then 14 per cent. The Midland Bank paid 18 per cent, for twenty-seven years, and in the last three years the dividend has been 16 per cent. In the National Provincial Bank the dividend for twenty years up to 1930 was 18 per cent., and has since come down to 15 per cent. The Westminister Bank paid 20 per cent, on £2O shares for tour years up to 1930, the rate since being 18 per cent., while on the £1 shares the rate in recent years has been unchanged at 12J per cent. It might seem strange that these high rates of dividends could have been maintained during the years of the depression, but the explanation apparently is that in more prosperous times large portions of profits were paid, into reserves, and that, as these accumulated funds have been more than sufficient to maintain the solvency of the banks, the yearly jirofits could he more largely used for keeping up dividend rates. In Australia banking reserves have not been so substantial, and the banks have followed the only safe course of cutting down dividend rates,.

BRADFORD MARKET Press Association—By Telegraph—Copyright LONDON, May -10, (Received May 11, at 10 a.m.) The Bradford inquiry is insufficient to test prices, but all are marked down. Quotations: seventies, 371 d; sixtyfours, 36-Jd ; sixties, 34d ; fifty-sixes. 25d; fifties, ISid; forty-sixes. 14d; forties, 11-ld. DAIRY PRODUCE Messrs Dalgety and Co. Ltd. have' received the following cable from London dated May 10;—The butter and cheese markets are firm. ■ Quotations: Danish butter, 82s; New Zealand finest, 74s to 755; Australian finest unsalted 72s to 745. unsalted 72s to 735; G.A.Q., 68s to 70s. Australian cheese: White, not quoted ; coloured, not quoted. New Zealand white. -1 Is to 455; coloured. 445. Canadian white, I 50s to 565; coloured, 50s to 56s ;' c.i.f., not quoted. The New Zealand Loan and Mercantile Agency Company Ltd. has received the following cabled advice from its London house, dated the 9th instant;—Butter, 745; market steady. Cheese: White 445, coloured 43s 6d; market firm. Messrs A. S. Paterson and Co. Ltd. today received the following cable advice from London Butter; Market firm ; Danish 645, landed' cost - 85 s: New Zealand, 765; Australian, 735, 745. Cheese: White, 455; coloured, 445. CHILLED BEEF EXPORT BORTHWICK FIRM WILL GO AHEAD (Per United Press Association.] ■ MASTERTON, May 10. The statement that his firm believed definitely that an export trade in chilled beef could be established for dominion breeders was made to-day by Mr I’. J. Borthwick, of Messrs T. 'Borthwick and Sons. He added that his firm intended to go ahead with frequent shipments. The consignment sent from Wairarapa in March last had arrived in England in first-class condition. The fourth shipment from Wairarapa was on the water at the present time, and a further consignment would be sent at the end of the month. Shipments would also he made from Auckland this month, SHEEPSKIN MARKET 'Messrs .Murray, Roberts, and Co. Ltd. have received the following cable from Loudon, dated May 10:—Sheepskins; .Merino and fine cross-bred declined 74 per cent.; cross-bred coarse to medium declined 10 per cent. Large withdrawals. DEARER BACON POSITION IN BRITAIN REDUCED CONSUMPTION. •, Remarkable evidence of the effects of fhe bacon quota was provided by Sir James Martin, chairman of Home and Colonial Stores, at the* general meeting of the company in London on March 20. Very soon after the Government’s import restriction policy had been adopted a rise in retail prices began. The decrease in consumption, which was bound to follow, has now become apparent. Home and Colonial Stores suffered a fall in profits last year of £150,000; directly attributable, according to Sir James Martin, to a shrinking in consumption of bacon. The same tendency toward shrinking bacon consumption was recorded at the general meeting of Meadow Dairies on March 19, says the ‘ Economist.’ Moreover, Sir James Martin, who may be assumed to have some practical knowledge of the bacon market, expressed the opinion at the Home and Colonial meeting that if the present restrictionist policy is continued bacon may “go out of fashion as an article of food in many households.” The public, Sir James added, who are after all pretty shrewd -in their judgment.' do not hesitate to buy what in their view offers the best value, and have no hesitation in substituting one article for another in budgeting for their household requirements. This is but one among many of ihe simple economic facts which Air Elliot’s clumsily improvised schemes failed to take into account, comments the ‘ Economist.’ The theory behind those schemes was that the price of one commodity after another could be forced up in the interest of the producer by limiting the supply ; and the probable repercussions of such a policy on demand were forgotten or disregarded. In practice, as was inevitable, the consumer is beginning to assert himself; arid in the case of bacon it seems likely that in the, long run not only the retailer and the public, but the farmer himself may bo injured. If bacon is too dear to’buy,'no farmer, English or Danish, will get anything for it. AVc hope that the reaction of the consumer to this case may incline Air Elliot -to study the factor of demand, if he did so it might perhaps dawn upon him that the interest of producer and consumer alike lies not in restriction of supplies but in a cheapening of production and an expansion of demand. JAPANESE COMPETITION “ I will not say much about Japanese competition in general, as the danger from Japan is now thoroughly realised in this country, which was hardly the case when we met last,” said Air Samuel Courtauld, at the annual meeting of Courfaulds Ltd. (England). “The position is more serious than ever. Japanese ravon production rose from 69,000.0001bs in 1932 to 96,000,OOOlbs in 1933, making Japan the second largest producer'in the world ; apparently a huge further increase is planned for 1934. “ At present a committee representing the English cotton and rayon trades—upon which this company has a member—is negotiating with a Japanese delegation now in this country in the endeavour to come to some mutual agreement, in respect of world markets, and negotiations are continuing at this moment. It is impossible to exaggerate the importance of this question, for I think that the future of the whole of this country’s export trade in textiles is at stake.”-

AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, May 10. On the Exchange there was an improved demand for gold shares. Government Bonds touched higher levels, while ordinary company shares were generally firmer, but banks were neglected. Later sales were: Colonial Sugar, £64 7s 6d; Associated News (pref.), 24s 4],d; Howard Smith, 14a 4d; Burns, Philp, South Seas, 25s ad; W. R. Carpenter. 425; Fairy mead Sugar, 355; Farmers, 19s 9d; Newcastle Gas (A), 13s 3d; Goodyear (pref.), 32s 6d; Automatic Totalisators, 20s 6d; Broken Hill Proprietary, 48a; South Brokrin Hill, 735; Kuala Kampar, 17s 1A cl; Rawang, 9s Id; Tauah Biji. 18s 3d; Placer Development. £23 Ids. MELBOURNE, Alay 10. Bank of Australasia, £l2 6s; Commercial Bank of Australia, 17s 3d; Nestles (pref.), 365; Goldshrougb, Alort, 345; Gordon and Gotch, 41s. METAL MARKET Press Association —By Telegraph-Copyright LONDON, May 9. The following are the official metal quotations:— Copper.—Standard, £32 Is 3d per ton: forward, £33 4s 4J-d. Electrolytic.—Spot, £35 15s; forward, £36 os. . Wire bars, £36 ss. ■Lead.—Spot, £ll Is 3d; forward, £ll 7s 6d. Spelter.—Spot, £l4 18s 9d; forward. £ls ss. Tin.—Spot, £235 17s 6d; forward, £232 12s 6cl. ■ Pig Iron.—Home trade, £3 7s Gd; export, £3 2s 6d. Antimony .-—-British, £42 10s; foreign, £26 10s. ft Silver.-—Standard, 19 13-16 d per on; tine,: 21 3-Bd. Molybdenite, £1 16s per unit. Wolfram, £2 Is 3d, SHEEPSKIN SALES Press Association—By Telegraph—Copyright LONDON, Alay 10. (Received Alay 11, at 10 a.m.) At the sheepskin sales 2,897 bales were offered,-including 985 from New. Zealand. There was a good attendance but .poor competition. Continental buyer's were the chief operators. About 40 per cent, was sold.- Compared with March 22, prices were cheaper. Australian merino combings realised 7]d. Cheaper clothings were withdrawn. Fine cross-brecls were 10 per cent lower. New Zealand fine cross-breds. when sold, were 5 per cent, down for medium. and 10 per cent, down for low. DAIRY QUOTA POSSIBILITIES POSITION UNCHANGED [Per United Press Association.] AVELLINGTON, May 10. A cablegram forwarded to New Zealand by Air Dynes Fulton, a member oi the Dairy Control Board, who is at present in England, in which he stated that there wa: no need for anxiety regarding a possible quota on New Zealand dairy produce, was referred to the Prime Aiinister (Air Forbes) and tire Aliuister of Finance (Air Coates). It was ascertained that, the Government had received no advice to indicate that there had been any change in the position as it existed when the Dairy Conference was held in AA 7 ellington. BETTER IN AFRICA GREATLY IMPROVED CONDITIONS Greatly improved trade conditions in South Africa arc proving of advantage to the United Kingdom. British exports of various kinds have been considerably increased. It would be incorrect to say that the Union is enjoying a boom, but the termination of the drought, the greatly increased price for wool, and the premium on gold have all contributed to an improvement of a noteworthy kind. The latest survey of conditions there shows that in every department of business activity the upward trend indicated in 1933 (and particularly in the latter half, of the year) is being steadily maintained. One authority, in close touch with all that is happening, said recently : “ When gold and wool are right, everything else is right in South Africa, and nothing has been more encouraging than the change-over from depression. So far as wool is concerned, the present benefits are the direct result of a courageous, policy. The temptation to refuse to sell wool when it was at an uneconomic price, and to hold it up until there was a shortage, was resisted.