Commerce, Mining, & Finance

Evening Star, Issue 22212, 14 December 1935, Page 13

Commerce, Mining, & Finance

CAPITAL IN ARGENTINA BRITISH INTERESTS SUFFER POOR RETURN ON FUNDS “ TIME FOB STOCK-TAKING.” British companies interested in the Argentine are .becoming restive regarding the continued poor return. on the capital invested there, judging by statements made recently. Speaking at the annual meeting in London of the Argentine Land and Investment Company Limited, Mr Cecil Mallet, chairman of directors, said that when the Boca Treaty was signed it was agreed that British interests, which outweighed all other foreign ones in’ the Bepublic, should receive, in the matter of exchange, beneficent treatment. It was recognised that the Argentine Government fully appreciated the benefits rendered by the collaboration of British capital in public utility and other undertakings carrying on business in Argentina, and, following its traditional policy of friendship, it declared' its intention to accord to those undertakings such benevolent treatment as would conduce to the further economic, development of the country. The treaty- was followed almost immediately by an official devaluation of the peso of something like 25 per cent., and the Government proceeded to buy bills at 16dol to' the pound l and sell sterling at 17, and even at that price it was very difficult to fulfil British requirements. “We are a patient people and we .wish to help Argentina in her difficulties, which nevertheless are not so great as other producing countries, as she .was not in the World War and made ' great profits out of, it.. The time has arrived.for the Argentine Government to take stock of its treatment of British ‘ capital invested in the Bepublic,, and to which it owes its premier position in the Latin American world. Practically, all English companies to-day are receiving little return upon- the money invested, and public utility companies are receiving none at all, but the Argentine public, nevertheless, continues to use them and derives great benefit from, the fact of their having , been built with British capital. “ I view with great concern Argentina’s position in the British market when the / Boca Treaty expires next year. This is the only one for her principal meat export in, chilled con- • dition, and it is vitally, necessary -to the great body of Argentine landowners who have built up magnificent herds; of cattle in the free-trade days of , Great Britain 1 . Again, Argentina is a vast county and still largely undeveloped. She will yet need much, capital for opening up her vast resources, and this country, which has been her good friend in the' past, is the only one to-day which can finance her requirements. Surely it is worth her while to mete out such a measure of benevolent treatment to British investments as will entitle her to a share of our markets and induce our capitalists to continue to give,her the financial support which has never been withheld from her in the past,”- 1 EXCHANGE FUND EQUALISATION ACCOUNT POLICY OF GREAT BRITAIN SECBECY CONDEMNED. Writing on the future of the exchanges, in the monthly review of Lloyd’s Bank, Mr J. N. Keynes pays a tribute to the Success with which the British exchange equalisation account has been operated, but urges that the secrecy, attaching to the nature and magnitude of its transactions is' a grave mistake. : “ It is an extraordinary and unwholesome breach with tradition that England should conceal the magnitude of its gold reserves and the movement of gold into and out of them,” states Mr Keynes. “ Imagine the results of this practice being generally adopted by central 'banks, until'the location of the world’s gold could be only vaguely conjectured. The movements of gold into and out of a country’s reserves are an economic indicator of the first importance. We might as well suppress the trade returns or the figures of national income and expenditure. “ If speculation is made th° •"•ruse, it is upon mysteries and mystifications, half-elucidated by gossip and rumour, that speculation feeds. As tb'> current report-of the Bank for T ntemntional Settlements noints out, the secrecy ot thi British Equalisation Fund makes hay of the international gold and currency statistics. But above all leads .to world-wide suspicion of our methods and motives, which is, I believe, quite unfounded and would be quickly dispelled by publicity. The Fund is believed abroad to be our instrument fqr all kinds of subtle and self-seeking policies.' Such suspicions, even though they are unfounded, are well deserved.. No sound international exchange policy can be built up on secrecy and the concealment of matters which are of common concern.” DAIRY PRODUCE Messrs A.- S. Paterson and Co. Limited have received the following cable from London:—Butter: Market steady temporarily on small supply; future outlook weaker owing to -heavy arrivals. New Zealand, 87s; Australian, 86s; Danish, 106 s, landed cost 1275. Cheese: Market firm. White cheese, 51s 6d; coloured, 54s 6d. The South Island Dairy Produce .Associationl reports having , received the following cabled advice from London : Butter: Quiet; 87s to 88s; Danish, 1265. Cheese: Steady; white 525; coloured, 55s to 565.

I. AND G. MUTUAL LIFE SOCIETY ANNUAL MEETING A PROSPEROUS INSTITUTION MELBOUBNE, December 13. The fifty-ninth annual meeting of the T. and G. Life Assurance Society was held to-day. The Chairman, Mr J. T. Thompson, announced that the new business comprised 169,695 policies, assuring £13,790,402, an increase of £973,588 over the previous year’s figures. . These completions constitute a record in the history of the society. The accident department issued 28,278 policies, assuring £7,826,162, more than double the amount of new business completed in the previous year, and in addition 9,757 policies in the ordinary department were endorsed with accident benefits. The total income amounted to £4,567,932. Of the total assets £23,170,360, 65 per cent, was invested in Government, municipal, and other public body securities. The office premises account had been written down by £25,000, and £25,000 had been transferred to the contingency fund, increasing the amount of that fund to. £662,074. - . ' The actuarial report disclosed a surplus of £754,375, providing reversionary bonuses and other benefits on the pamo liberal scale as last year. The Chairman said that, in his opinion, there were unmistakable signs or a .steady improvement in business conditions, and that he was confident, therefore, that the -society’s business would continue to expand. In conclusion, he_ expressed the board’s deep appreciation of the capable and loyal service of the field and indoor staffs, METAL MARKET Press Association—By Telegraph—Copyright LONDON, December 12. The following are the official metal quotations :■— Copper.—Standard, £35 Is 3d per ton; forward, £35 10s 7RI. • Electrolytic.—Spot, £39 6s; forward, £39 15s. Wire bars, £39 15s. Lead.—Spot. £l6 18s 9d; forward, £l7. Spelter.—Spot, £ls 2s 6d; forward, £ls Is 3d. Tin.—Spot, £217 12s 6d: forward, £209, Pig Iron.—Home trade, £3 10s; export, £3 Is 6d. Antimony. British, £76 10s; foreign. £53 ss. o Molybdenite, £1 14s 6d per unit. Wolfram, £1 14s 6d. Silver.—Standard, 26Jd per oz; fine, 29d. OAMARU WOOLLEN SHARES A first payment of 10s per share on account of sale of the shares in Oamaru Woollen Factory Company, Ltd., has been made to the original shareholders. It will be recalled that the old company sold its shares to a new company that was to have been formed and is now in operation. A further payment is to be made to the original shareholders on completion of certain formalities and ascertaining the legal and other ’expenses of the negotiations, probably during this month. BROKEN HILL SOUTH CHAIRMAN ON THE OUTLOOK A jubilee bonus of 2s 6d,a share, requiring £IOO,OOO, was announced at the annual meeting of Broken Hill South Ltd. on December 1 by the chairman (Sir Colin Fraser). Sir Colin said that developmental operations on the company’s leases at Broken Hill had been begun in 1885. The bonus would be an addition to the next quarterly distribution to be declared in January, payable in March, next. In his address to shareholders Sir Colin Fraser said that the world’s known resources of lead-zinc ores, which could be mined profitably to-day, were by no means unlimited. If, therefore, these continued to be drawn on at the present rate of more than 15,000,000 tons annually for the next 10 years, it would seem that more inaccessible, and/or lower grade ore deposits would have to be developed to assist in meeting requirements. This suggested higher prices for • the metals in the next decade. While there was no indication that the United States would repeal or amend its silver purchase Act, it appeared likely that the more moderate policy of not forcing the price above the levels obtaining during the last three months would be followed. Tho silver price was, however, so tied up with American politics, that it was impossible to forecast what might happen in this connection. A very important factor in this connection with the company’s revenue was the exchange value of Australian Currency, which had conferred great benefits on the leading primary industries of Australia, including the whole non-ferrous metal industry, and the expanding gold-mining industry. He hoped that the longer view would continue to prevail, with the Governmental and monetary authorities charged with controlling this position. “In summing up the prospects,” said Sir Colin Fraser, “ one would say that assuming serious international complications will be avoided, the upward swing of the world business cycle, despite all the factors tending to retard it, will continue for some time, and our industry will continue to benefit from the greater demand, for metals. There is, therefore, considerable justification for the hope that the revenue of this company for the current year will register a substantial increase, and that the distributions to shareholders, and the additions per medium of the metal bonus to the wages of our. employees, will be entirely satisfactory to all concerned at the mine. Our long and extensive _ programme of constructional and major developmental work has been completed, and. we are thoroughly equipped to produce efficiently. The fact that further capital expenditure Is not at present contemplated, and that tho company’s financial position is very strong, places us in the happy position «of being able to distribute all yrtffits earned, and that is the hoard’e i

STOCK ANT SHAREBROKERS. BULLETIN. WE OFFER, SUBJECT TO SALE OR WITHDRAWAL

WE HAVE BUYERS FOR:— £I,OOO 3£ p.c. Government Slock. £3,000 Dunedin Oity Corporation 41 p.c. Debentures. 100 Taupo Totara (ord.). 50 Woolpack and Textile. 200 Bank o£ New Zealand. 100 Kaitangata Coals. 300 King Solomons. 500 Argo. 1,000 Moonlight Goldfields. 4 Afforestation Ltd. Shares. 6 N.Z. Perpetual Forest Bonds (any issue). THE SECURITIES CORPORATION (N.Z.) LIMITED, ALLIANCE ASSURANCE BUILDING, 20 CRAWFORD STREET, DUNEDIN. Telephone 11-777 (3 lines). Telegrams: “ Toscol,”

DOLLAR RATES, The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates to-day on a New Zealand currency basis. They are subject to alteration without notice:—

BANK OF ENGLAND RETURN

The proportion of reserves to liabilities is 35.40 per cent. Short loans are quoted at | per cental three months 1 ' bills, 43-64 per peat*

FRUIT AND PRODUCE Bray Bros. Ltd. report as follows for week ending yesterday;— The fowl wheat , market continues steady. With the near approach ;of the new harvest merchants holding stocks are inclined to sell more freely. Values remain unchanged on a basis of 5s per bushel, sacks extra, ex truck, for the best quality, with small lots ex the stores bringing up to 5s 3d. Millers’ prices for flour, etc., are as follow;—Flour; 2001 b, £l2 17s; 100’s, £l3 2s; 50’s, £l3 7s; 25’s, £l3 12s. Bran, £5 5s per ton. Pollard, £6 5s per ton. ‘ Oatmeal: 2001 b, £l9; 25’s, £2l. Business in oats is restricted conseqnent on the small stocks now available. There are, however, practically no inquiries, and, on the Other band, orders of any extent could not be filled if they were to be received. The market remains unaltered on a basis ol 3s lid, f.0.b., s.i., for A’s ami 3s_ 9d for B’s. These prices are equivalent to 3s 3d and 3s respectively, on trucks, country sidings. ; . , Quotations are still being received for delivery next season. The price named is 3s, f.o.b;, s.i., for A; Gartons, but merchants are not showing numb interest, as .it is expected that there will be heavy yields next year,, with low prices niling. Stocks of chaff in the stores are being worked off, but the aniount of business going through is on thq small side. Space in the stores is required for the wool now coining forward and merchants are therefore not anxious -to. buy chaff. Best. quality is worth today about £5 10s, sacks extra, ex store. Old potatoes are now practically exhausted for the season and the demand has changed over to new potatoes.; Business in all lines of seeds is very , quiet and there is practically no Wholesale trade going through. FRUIT REPORT. In the fruit marts during “the week business has had a much brighter tone with heavier supplies of fruit and produce on offer. Canterbury-grown Stumors are available in small quantities. Prices firmed during the week. New Zealand-grown lemohs are m heavy supply. Most of the lines coming to hand are showing waste. Low prices rule. .' . Choice-quality strawberries are bringing satisfactory .The hot weather is, however, showing its effect on many lines.' Supplies are coming forward from Central Otago, Waimate, Outram, and Sawyer’s Bay. Supplies of cherries are increasing. Choice quality realise satisfactory prices. Two shipments of bananas, ono from iSamoa and the other from Raratonga, came to hand, but the fruit arrived on the ripe . side. A further shipment of Samoan-grown is due to arrive about December 16. Jnmacian oranges are now on the market. High prices are being asked and sales consequently slow. A email shipment of Californian navals arrived yesterday in good condition as did also a small quantity of grapefruit and 8 dnosoberries are more plentiful.' Christchurch tomatoes are arriving in increased quantities, but prices remain firm. Local grown are coining forward freely and the quality this year is exceptionally good. _ _ Asparagus is coming forward in small lots, biit owing to the hot weather the condition .is not good, and in some instances lias been unsaleable. Green ; peas and hew potatoes have Been cpmmg forward in heavy Supplies and prices have receded . each day. North Otago, Outram, and districts round about Dunedin are the chief sources of supply. Peas are chiefly from Waimate, where heavy crops are reported. Carrots and white turnips are selling freelv. Lettuces and cabbages are practically unsaleable. There is a good demand tor cauliflowers. Eggs, butter, and cheese are selling freelv, but. honey is slow. Wholesale prices are as follow: Apples.—American, 25s to 25s 6d; Delicious (wanted), 14s to 15s case. Bananas.:—Ripe, 28s to 32s 6d case; green, 25s t0,2756d case. Oranges.—Jamaican, 30s to 355. Lemons.—New Zealand, 7s 6d to 10s; Californian, 60s to 70s. Strawberries, 6Jd to Is pottle. Grapes, 28s 6d to 30s. Grapefruit, 25s to 30s. Cherries, ojd to Is 2d lb. Gooseberries, lid to 2ilb: Tomatoes.—Local hothouse, Is lid to Is 3d; Christchurch hothouse, Bid to Is Id, • ’ ■ Asparagus; 3s to 4s dozen. Potatoes, l3s to 16s cwt; local, lid to 2d lb; North Island, 7s to 8s cwt. French beans, to Is 8d lb. Broad beans, 2d to 3d lb. Cabbage, Is to'2s case. Cauliflowers (wanted), 6s to Bs. Lettuce, 4d to Is dozen. Onions, 20s. Carrots, Is 6d dozen. White turnips, 9d dozen. Spinach, Is dozen. Kumeras (wanted), 2id to 3d lb. Rhubarb, Is to 2s case. Walnuts, 4d to 6d lb. Green peas, lid to 2id lb. Honey.—Bulk, 4Jd to 4Jd; 101 b tins, os 6d tin; slb tins, 3s 3d tin. Butter.-—Storekeeper, 9id to 10id lb. Beeswax, Is Id lb. Oyster grit, 7s cwt. Eggs, market rates. Fowl wheat, 5s 3d to 5s 6d bushel. Oats.—A Garton, 3s lid bushel; B Garten, 3s 2d bushel; crushed oats, 14s 6d bushel. Cross Keys meatmeal, 16s bushel. Chaff, £5 10s to £6 per ton. Straw (wheaten), £3 per ton. Cheese, sfd to 5Jd lb. Lard, 6id lb. Macdonald and Millar’s Gold Medal bacon, lOd, IOJd, and lid. Christmas hams, Is 2d lb. MDTURDA OIL FIELDS PRODUCTION STATEMENT Moturoa Oil Fields Ltd. report for one month ended November 30 as follows :—No. 4 well: Produced 4,100 imperial gallons of crude oil. Total production to date, 87,218 imperial gallons. No. 2 well: Produced 12,850 imperial gallons of crude oil. Total production to date, 697,152 imperial gallons. No. 1 well: Produced 1,090 imperial gallons of crude oil. Total production to date, 16,778 imperial gallons. PRICE OF GOLD Press Association—By Telegraph—Copyright LONDON, December 13. (Received December 14, at noon.) The price of gold is quoted a 4 £? 3® Jd gfl® pa*

£ S. d 100 D.X.C. (ord.) 0 16 0 50 Loyal Ltd. (prof.) 1 10 0 200 Smith Wylies 0 14 0 50 Dominion Fertilisers 1 3 9 25 Procera Broad (ox rights, cum div.) 2 5 0 100' Okarito 0 5 9 1,000 Bendigo Goldlights 0 0 3 500 Waipapa Beach 0 1 8 500 Bendigo Biso and Shine ... 0 1 0

FOREIGN EXCHANGE ON NEW ZEALAND CURRENCY BASIS The Bank of New South Wales, Dunedin, Quoted the following rates for purchase and sales of foreign exchange (all rates Subject to alteration without notice) s— Buying. Selling. London—■ £100 stg. £124 10/ N.Z. ... ... T.T. £124 O.D. £123 10/ £124 8/9 Australia — £A to £100 £100 10 1 N.Z. ... ... T.T. £101 Fiji- . £F- to £100 N.Z T.T. £90 7/6 £89 New York— Dollars to £1 3.95 N.Z . T.T. 3.984 O.D. 3.99} 3.95} Slontreal— Dollars to £1 N.Z. ... - ... . . T.T. O.D. 4.01} 4.03 S.98i 3.98| France— Francs to £1 60.52 59.22 N.Z . T.T. O.D. 60.82 59.27 Noumea — 1 Francs to £1 58.47 N.Z T.T. 61.47 O.D. 61.87 58.52 Fancete — Francs to £1 61.47 58.47 N.Z ... .. . T.T. O.D. 61.87 1 58.52 Belgium— Belgas to £1 23.163 N.Z T.T. — O.D. — 23.178 Germany— Reichraarks to £1 9.630 N.Z T.T. — O.D. — 9.635 Switzerland— Francs to £1 - N.Z T.T. 12.429 12.029 O.D. 12.604 . 12.039 Holland— Florins to £1 N.Z. . T.T. 5.982 5.732 O.D. 6.032 5.736 Java— Florins t<> £1 N.Z. ... ... .. T.T. 5.923 5.698 O.D. 5.973 5.702 Japan— N.Z. pence to 1 11 21-32 yen .. T.T. ' — O.D — 17 41-64 Shanghai— N.Z. pence to 1 dollar T.T. 17 11-32 18 21-32 O.D. 17 7-32 18 41-64 India and Ceylon— N.Z. pence to 1 22 23-32 rupee T.T. 22} O.D. 22} 22 21-32 Hongkong— N.Z. pence to 1 dollar T.T. 19 1-18 20 5-16 o.d; 18 15-16 20 9-32 Singapore— N.Z. pence to 1 dollar T.T. 54 11-32 35 9-32 O.D. 34 7-32 35 7-32 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. 15.240 15.880 -Denmark — Kroner to £1 NZ . . T.T. 18.208 17.878 O.D. 18.248 17.888 Austria — Schillings to £1 N.Z T.T. 20.68 O.D. — 20.70 Czechoslovakia— Crowns to £1 N.Z T.T. 94.93 O.D. — 94.98 —

TJ.S.A. CANADA. (Per £1 N.Z.) (Per £1 N.Z.) SELLING T.T. (dol) 3.95 3,98* O.D. (dol) 3.95g 3.98J BUYING— O.D. (dol) 3.995 . 4.03*

Press Association—By Telegraph—Copyright LONDON, December 12. (Received December 13, at 11 a.m.) —Issue Department.— Note issue in circulation £410,930,885 Bank department 48,478,502 £459,409,387 Government debt Other Government securities ‘Other securities ... ... Silver coin Gold coin and bullion ... £11,015,100246,356,702 1,088,590 1,539,608 199,409,387 £459,409,387 —Banking Department.— Proprietors’ capital £14,553,000 Rest ' 3,349,435 Public deposits ... 6,842,570 Other deposits (bankers) ... 94,387,267 Other accounts 37,204,168 £156,336.440 Government securities ... Discount advances Securities Notes in reserve ... Gold and silver coin ••• £84,212,941 10,079,807 12,911,585 48,478,502 653,605 £156,336,440