Commerce, Mining, & Finance

Evening Star, Issue 22070, 2 July 1935, Page 7

Commerce, Mining, & Finance

AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, July 1. Qn the Stock Exchange, with the tarn of the' financial year, there was a strong tone in the investment mar- ' ket, the only exception being banking shares. AFTERNOON SALES.

NEW ZEALANDT CO-OPERATIVE DAIRY factory A SATISFACTORY YEAR £P«k United Press Association.] HAMILTON, July 1. The yearly returns of 4he New Zealand Go-operative Dairy Company show, after due allowance is made tor a reduction consequent on the severe . drought experienced, in mid-summer, a result which is' considered highly satisfactory. The following are the yearly production figures for the company’s various 'factories, the previous , season’s/ comparative / figures .being • given in parenthesesßutter, 42,089 tons (46,637); cheese, 9,019 tons (11,421) ; casein, 931 tons (810); milk powders, 5,345 tons (4,777) ;■ condensed milk, 1,860 tons (633). ASSOCIATED MOTORISTS’ PETROL At the annual general meeting of Associated Motorists’ Petrol Company Ltd., id Wellington last week, the directors’ recommendation that a dm-. f dend at the rate of 10 per .cent be paid to preference shareholders out oi. the profits for. the-last/year’s trading was adopted. The net’ profit for the year was shown at £34,445. _ Mr Charles Todd, in his address to shareholders, said the figures at March 31, 1935, showed the company to be in a very strong financial position. Paid-tip capital £131,268 17s was £16,480 \ 19s 6d greater than the amount shown under this heading at the same date last year. Apart from the provision for income tax, the item sundry creditors, referred almost wholly to a shipment or petrol unloading at the end of the financial year. ’ The result of their second year’s trading was most gratifying. The outstanding benefit to shareholders and the public of cheaper petrol of very high quality amply justified the company’s existence. As a result of the entry of the company into the business, petrol prices were 6d per gallon - lower to-day than the average price prior to the company’s formation. Such a saving, amounting to £1,500,000 per annum, to the New Zealand public was a very big achievement.’ The report and balance-sheet were adopted. The retiring directors, Messrs Charles Todd, M. H. Wynyard, and D. H. Todd, were re-elected. * NEW GUINEA GOLD SHARES , Fret* Association— By Telegraph—Copyright LONDON, July 1> (Received July 2, at 10 a.m.) 'New Guinea Gold shares are quoted a$ 4s 2|d. BRADFORD MARKET Press Association—By Telegraph—Copyright LONDON, July 1. (Received July 2, at 10 a.m.) Bradford is showing a further hardening tendency with a fair amount of business. PRICE OF GOLD ftm Association—By Telegraph—Copyright LONDON, July 1. (Received July 2, at noon.) TEe price of gold is quoted at £7 Is 4Jd per oz.

GOLD EXPORT TAX PRODUCTION RESTRICTED AUSTRALIAN FINANCIER’S CRITICISM The inequalities of the New Zealand frold export tax, fond the subject or criticism by Mr F. G. Pratten, chairman of directors of Alluvial Tin (Australia) Limited, Sydney, which is interested in the Barry town Gold Dredging Company Limited, West Coast, in a letter to an Auckland resident (states the Auckland ‘ Herald ’). Mr Pratten agrees with Lieutenantcolonel E.' H. L. Beddington., chairman of directors of the Waihi Gold Mining Company Limited, in his address to shareholders, and states that there is no doubt the tax narrows the margin of profitable mining in. New Zealand and makes the exploitation ot lower grade properties almost impossible. n His company had spent about Aou,000 in the dominion during the last two years in boring and making expert investigations, -by which it had been proved that there were millions of yards of dredgeable lands containing gold. However, with the export tax and income tax they were too low-grade to attract the necessary capital. “ I would not suggest that the-, income tax be lifted as in Australia, he writes. “ The companies vyhich are making profits should contribute to the revenue, but the gold export tax penalises the low grade producers and makes it almost impossible for them to earn a profit.'’ , Commercil agents were being sent from Australia to all parts of the world to foster the sale of, primary products, but the great asset in goldbearing lands was to a large measure being neglected, although not to the same extent as in New Zealand, he writes. There was enough undeveloped gold in Now Zealand, to pay the national debt. Investigations of dominion gold deposits were not conducted with anything like the thoroughness and scientific care given to fat lambs and beef, but these things were not wanted overseas, whereas America was willing to buy any quantity of gold at 35 dollars an ounce. “ We need no trade representatives to sell gold, which is the only product exported by Australia and New Zealand which the world will tako~without a quota.” he concludes. i“Yet in New Zealand people are charged 12s fid an ounce for the privilege of producing this gold, whether to do so is profitable or otherwise. I realise there are many difficulties, hut every facility should be given to the recovery of gold and the whole country should be mobilised and reorganised for its production.” THE SEARCH FDR GOLD BENDIGO GOLDLIGNT RETURN The dredge master reports a washup at the end of last week of 9oz 2dwt, and that the dredge is still operating in the top material. - i . WAITAHU RETURN Messrs W. A. Mitson and Co., secretaries of the Waitahu Gold Mining Company Ltd., have received advice from the claim manager that the final wash-up from No. 3 paddock took place on Saturday last, the return being 470 z lOdwt for 12 shifts' of eight hours each. Elevating operations on this No. 3 paddock were commenced on March 25 last, and the returns since that date, including the present wash-up, total 326bz fidwt for 174 shifts of eight hours each.. During this period ground sluicing. has been carried on for 35 shifts of eight hours each, stripping the top material at No. 4 paddock. THE MATAKI RETURN i (Pin United* Press Association,] AUCKLAND, July 1. The Mataki return for the week ended June 30 was 420 z for 1332 hours’ work. iROSSE AHD BLACKWELL LTD. . / REDUCTION IN PROFITS The well-known London company of Crosse ■ and Blackwell Ltd., whose goods are extensively imported into New Zealand, have recently presented their, balance-sheet aqd report for last year’s trading. The report states that after charging £25,000 for the estimated loss- on the closing of the Minto street factory, profits, less losses of subsidiaries and associated companies, fell from £249.215 for -1933 to £191,245 for 1934. After meeting general charges, depreciation, income tax, and debenture interest, there is a net profit balance of £12,777, against £67,195. The accumulated debit balance now to be carried forward on profit and loss account is £258,885. The directors express disappointment that the year’s results do not come up to their expectations, and state that competition has been so intensified that it became necessary to augment the sales expenditure and advertising to a much greater extent. But, on the other hand, there is an increase in the distribution pf the company’s products. - i AUSTRALIAN AGRICULTURAL AHD PASTORAL ASSOCIATION Press Association—By Telegraph—Copyright LONDON, July 1. ' (Received July 2, at 1 a.m.) After making provision for income tax and transferring £7,000 to the stock renewal account, the Australian Agricultural and Pastoral Association’s profit is £2,444. Brpught in £2,299. A final dividend of 2s per share (tax free) will be paid. Brought forward, £2,743.

FOREIGN EXCHANGE BN NEW ZEALAND CURRENCY BASIS Tho Bank of New South Wales, Dunedin, quoted the following rates for purchase and sales e£ foreign exchange (all rates subject to alteration without notice): —

\ DOLLAR RATES, The Associated Banks (other than the Bank of New South Wales) quoted the following dollar-sterling rates to-day, which are subject to alteration without notice On a New Zealand currency basis these rates are equivalent to:— U.S.A. Canada. SELLING— T.T 3.96 3.963 On demand 3.96| 3.971 BUYING— On demand ... ... ... 4.01 4.01| CHRISTCHURCH COUNCIL LOANS SUPPLEMENTARY CONVERSION ORDER A supplementary loans, conversion order made by the Christchurch City Council is published in the current issue of the * Gazette.’ The order provides for the conversion _of certain loans raised by the council from the State Advances Department, and the conversion will become operative on September 5. The loans covered by the order are the North Linwood and Avonside waterworks load of £17,000, and the workers’ dwelling loan of £30,000. DOLLAR AND FRANC Press Association —By Telegraph—Copyright LONDON, July 1. (Received July 2, at noon.) The dollar is quoted at 4.94 7-16 and the franc at 745.,

THE CONVERSION LOAN GOVERNMENT ALWAYS SEEKING INTEREST REDUCTIONS OPTION TO REDEEM RETAINED [Per United Press Association.] WELLINGTON, July 1. The Acting-Minister of Finance (Hon. A. Hamilton), interviewed today in regard to the cabled report of the London loan conversion, stated that the transaction relates to £lO,135.800 5 per cent, stock, £5,000,000 of which was issued in 1922 and £5,135.800 in 1929, ■ the latter representing the conversion of portion of the £29,000,000 loan which matured for payment that year. In regard to the conversion, now being effected the Minister said the final maturity date of the £10,135,800 would not haVo occurred until 1945, but the Government had the option of paying" off the loan on or after July 1, 1935, on giving three months’ notice. In conformity with the Government’s policy of seeking every avenue whereby interest rates might be reduced to present-day standards, * thus affording considerable_ relief to the finances of the dominion, a favourable opportunity to effect conversion had been taken in respect of the loan in question. Mr Hamilton stated that the new issue, which was being made at 98£ with interest at 3 per cent., would have a twenty-year currency—namely, to July 1, 1955. The Government, however, would retain its option to redeem within three years of that date. . , .

The. Minister explained the desirability of retaining the option to redeem .within a period _ prioil to the' stated maturity date,' in that advantage could be taken, as in the present case, of a favourable opportunity to refinance on easier terms. Of the total loan of £10,135,800 the New Zealand Government was paying off the holders to the extent of £2,135.800. Thus the new issue would bo £8,000,000 net, and having regard to this factor and the low rate of interest now payable, the annual saving, ito New Zealand would be considerable. THE TIN MARKET Press Association—By Telegraph—Copyright LONDON, July 1. (Received July 2, at .10.5 a.m.) World visible supplies. 13,355 tons (Straits carry-over, 842); supplies, 5,226; deliveries, 7,702.

'■ ■ ■ £ s. d. Bank of New South Wales 31 15 0 Commercial Bank of Sydney 17 16 0 National Bank (£5 paid) 6 5 0 Union Bank 8 15 0 , Bank of Australasia 11 2 0 United Insurances 12 0 0 Associated News ... ... ... 1 3 6 . Howard Smith ' 0 14 5 Australian Gas (A) 8 2 0 Tooth’s. ... 2 15 6 Australian Glass 3 9 0 Gbldshfough, Mort 1 9 7* Wilcox, Mofflin ... . ... 0 11 2 ~ Morris, Hedstrom (ex div.) 1 . 1 10* Millaquin Sugar 1 15 • 3 David Jones 2 0 9 Anthony Hordern 0 18 1UJ Amalgamated Textiles 0 11 6 Mount Morgan 1 17 0 Mount Lyell ••• 0 19, 0 Rawang Tin ... ... ... ... 0 ■? 3 Malim Nawar 0 18 6 Placer Development .... 33 5 0 . Peninsula Tin ... ... 1 ( 1 9 MELBOURNE, July 1. Commercial Bank of Australia ... ■■■ ••• 0 16 i . Qoldshrough, Mort ... ... 1 9 6 Gordon and Gotch ... ... 2 5 6 Howard Smith ... ... ... 0 14 7 North Broken Hill 6 10 6 Dunlop Perdriau U 16 1U

Buying. Selling. London— £100 etc. N.Z I T.T. £124 £124 10/ O.D. £125 10/ £124 8/9 Australia— £A to £100 N.Z T.T. £101 £100 10/ Fiji— £F to £100 N.Z. T.T. £90 7/6 £89 New York— Dollars to £1 N.Z . ... T.T. 4.00 3.95* O.D. 4.014 3.96| Montreal— Dollars to £1 N.Z. , ... T.T. 4.00A 3.961 O.D. 4.0l| 3.974 France — i Francs to £1 N.Z , .. T.T. 60.46 59.16 O.D. 60.76 59.21 NoumearFrancs to £1' N.Z ... T.T, 61.41 58.41 O.D. 61.81 58.46 Papeete— Francs to £1 N.Z ... T.T. 61.41 58.41 O.D. , 61.81 58.46 Belgium— , Belgas to £1 23.143 n:z .. T.T. — O.D. — 23.158 Germany— £1 Reiohinarks to ; 9.610 N.Z . .. T.T. — O.D. s— ; - 9.615 Italy— Lire to £1 N.Z .. T.T. — 47.16 O.D. — 47.20 Switzerland— Francs to £1 N.Z . T.T. 12.314 11.914 O.D. 12.389 11.924 Holland— Florins to £1 N.Z ;• . .. T.T. 5.946 5.696 O.D. 5.996 5.700 Java— < Fibrins to £1 5.674 N.Z ... T.T. 5.899 O.D. 5.949 5.678 Japan— ■ » N.Z. pence to 1 _ . yen ... , T.T. — n IW6 Shanghai— * • N.Z. pence to 1 dollar ... ... T.T. 23 5-32 24 15-32 O.D. 23 1-32 24 13-32 India and Ceylon- — N.Z. pence to 1 ' rupee ... . .. T.T. 22i 22 25-32 O.D. 221 22 21-32 Hongkong— N.Z. pence to 1 dollar ... ’... T.T. 32| 33 13-16 O.D. 32| 33$ Singapore — N.Z. pence to 1 dollar T.T. 34 7-32 35 5-32 O.D. 34 3-32 35 3-32 Sweden— - Kroner to £1 N.Z. ... ... ... T.T. 15.790 15.460 O.D, 15.830 15.470 Norway— Kroner to £1 N.Z T.T. 16.200 15.870 O.D. 16.240 15.880 Denmark— Kroner to £1 N.Z T.T. 18.208 17.878 O.D. 18.248 17.888 Austria— Schillings to £1 N.Z. ... ... . .. T.T. — 20.57 O.D. - 20.59 rvechoslovakia— Crowns to £1 93.65 N.Z ... T.T. — O.D. - . 93.70