Commerce, Mining, & Finance

Evening Star, Issue 22470, 15 October 1936, Page 9

Commerce, Mining, & Finance

BIG CONVERSION LOAN PROSPECTUS FOR £13,930,000 [Pep. United Piiess Association.] WELLINGTON, October 14. The Reserve Bank of New Zealand issued to-night the prospectus for the issue of a £13,930,000 loan in the form either of 3J per cent, stock or debentures repayable in 1953-57, or 3 per cent, stock or debentures repayable in 1939-41, for payment in cash, or in exchange for holdings of 4 per cent, stock and debentures, 1937-40. Interest is payable half-yearly at the Reserve Bank on January 15 and July 15. A first payment, being a full _ half-year’s interest on each loan, will be made on July 15, 1937. If not previously redeemed, the stock and debentures of the issues will be repaid at par at the Reserve Bank on January 15, 1957, as regards the 3i per cent. 1953-57 loan; and on July 16, 1941, as regards the 3 per cent. 1939-41 loan, but the Minister of Finance reserves the right to repay at par the 3J per cent, loan at any time on or after January 15, 1953, and the 3 per cent, loan at any time on or after July 15, 1939, subject in each case to thVee months’ notice of his intention to repay having been given in the ‘ Gazette.’ The proceeds of the new issues are to be utilised for the redemption of the 4 per cent. New Zealand Government loan (1937-40), totalling £12,426,675 6s lid, of which public notice of redemption on January 15, 1937, has been given by the Minister of Finance in terms of section 15 (1) of the New Zealand Debt Conversion Act, 1932-33; and also for the redemption of securities amounting to £1,530,000 issued in respect of the repayment in London on September 15, 1936, of the Southland Electric Power Board’s 5 per cent, and 6 per cent, guaranteed debentures (1936-54). The stock and debentures of the new loans are offered for payment in cash or in exchange for holdings of 4 per cent. New Zealand,, Government stock and debentures, 1937-40. According to the terms set forth in the prospectus, the holders of 4 per cent New Zealand Government stock and debentures (1937-40) are offered conversion in whole or in part into an equal nominal amount of 'either—(a) 3J per cent. New Zealand Governments stock, or debentures 1953-57; or (b) 3 per cent. New Zealand Government stock or debentures, 1939-41. Holders who convert will receive the usual six months’ interest on the 4 per cent, stock or debentures on January 15, 1937, and in respect of the new securities will receive the first half-year’s interest on July 15, 1937. Preferential allotment will _be given to applications for conversion. AUSTRALIAN STUCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, October 14. On the Stock Exchange there was an active market, and prices were inclined to harden still further for all betterclass securities.

SYDNEY WOOL SALES Press Association—By Telegraph—Copyright SYDNEY, October 14. At the wool sales 12,124 bales were offered and 11,042 sold, while 1,451 were disposed of privately. Competition from Yorkshire and the Continent was animated at the recent improved rates, and excellent clearances were effected. Greasy merino made to 22d. COLOMBO TEA SALE Mr L. M. Wright has received the following cabled report on the Colombo tea auction on October 13; — Medium and fine grades advanced about id l to Jd, while quotations for common teas showed irregularity, and were id easier at close of auction. Quality of offerings was useful, supplies coming forward being small. At next week’s sal© 1,500,0001 b will be auctioned. PRICE OF GOLD Pres.? Association—By Telegraph—Copyright LONDON, October 14. (Received October 15, at noon.) Fine gold is quoted at £7 2b on ounce..

MORE NOTE MONEY AS BUSINESS GROWS STATEMENT BY MR HASH A statement that the Government did not intend to use the printing press as a means of financing its increased expenditure was made by the Minister of Finance (the Hon. Walter Nash) in an interview, states the Auckland ‘ Star.’ Note money would come into use in greater quantities as a result of the Government’s policy, but notos_ would not be used to finance that policy, ho said. By this he meant that the expenditure of the Government on housing and in other directions, by the arranging of credits with the Reserve Bank, would give such a stimulus to business in all channels as to make a larger supply of purchasing power essential. This increased need would make itself felt through the trading banks, and as they found themselves called upon to provide added accommodation they would turn to the Reserve Bank, which would issue more notes. Thus the real factors determining the volume of notes in circulation would bo the volume of production, and the turnover of business. In short, the normal influence of the past would operate—with one important difference.

This difference, explained Mr Nash, was the larger part that the Government would play in quickening production and bringing about an increased flow of goods in trade. He took the view that,there should be little danger of exceptional increases in prices. “As the demand for commodities grows the note issue will grow with it,” he said. He added that the growth of the former would govern the latter. In reply to a question as to whether the Government intended to obtain accommodation from the Reserve Bank free of interest, Mr Nash stated definitely that the Government would be charged interest on all money it raised with the bank. “ That, however, does not necessarily mean a loss to the Government,” ho said, “ and if there are any trading profits from the activities of the Reserve Bank, those will automatically become the profits of the Government.”

THE FUTURE TARIFF INEVITABLE ADJUSTMENT ACTION BY GOVERNMENT POSITION OF MANUFACTURERS A recent statement by the Prime Minister, Mr Savage, that the Government’s tariff policy would give reasonable attention to the position of local manufacturers is causing some speculation about prospective adjustments. Mr Savage emphasised that whatever action was necessary to protect manufacturers against overseas competition would be taken by the Government. The importance of this subject is stressed in an article in the latest issue of the 1 New Zealand Accountants’ Journal.’ It states that for many years the per capita trade of New Zealand with Groat Britain has_ been much higher than is the case with Australia, and this has been a good argument for New Zealand to use when it came to bargaining with the Old Country in respect to the admission of our primary products. In this connection Australia has been gradually overhauling us, and it seems more than probable that within the next few years Australia is destined to become our largest competitor, not only for meat, but for dairy produce. “It is only natural, therefore, that the Commonwealth should endeavour to foster a greater amount of reciprocal trade with Great Britain,” continues the article. “It is very evident that m respect to the rearrangement of her Customs tariff every effort has been made to placate British industrialists, who have objected to the small volume of, goods which Australia takes _ compared with the purchases of primary products from Australia by the Home- “ When the tariff schedule and list of import prohibitions were announced in the Federal House of Parliament drastic alterations in the Customs schedule were made, not only in rates of duties and in the manner of their application, but in the powers of discrimination which it confers upon the Customs Department. The additions to the margins of British preference, and the prohibition of imports—except under license—of an important range of goods from countries outside the Empire, cannot be interpreted but as an indication of a growing determination to foster trade within the Empire and at the same time to lessen Australia’s dependence on countries overseas for certain necessary and important classes of goods.” TARANAKI IRONSAND SHEFFIELD COMPANY'S PLAN An attempt to develop the Taranaki ironsands is to be made by a Sheffield firm. Electric Steels Limited, by a modern process. The Patea Harbour Board has granted the company a license to remove ironsand from the foreshore for five years. A royalty of 6d a ton for separate ores and 7d a ton for steel produced will be payable to the board. It is understood that the ironsand will be shipped to England for treatment. The agreement reached terminates negotiations extending over a long period. Since negotiations were begun, applications have been received from several other overseas concerns regarding the ironsand at Patea and at New Plymouth. DOMINION BREWERIES ISSUE OVERSCRIBED The recent issue of shares in Dominion Breweries Ltd. has been oversubscribed excess applications totalling .17,000 shares, according to a circular issued by the directors. Allotments have been made at the rate of 12 per cent, of except for holders of preferential rights, where allot* znentg have been matte in fuIL

MINING COMPANY’S OPERATIONS EXCEEDING POWERS OF LICENSE " HIGHLY IMPROPER," SAYS WARDEN Criticism of the operations of the Ben Ledi Sluicing Company Ltd. was heard in the Oamaru Warden’s Court yesterday during the_ hearing of an application by the mining company for a license for a tail race. Mr J. H. Main, who appeared for the objectors, the Waitaki County Council, stated that although the company had only a prospecting claim it was carrying out operations on a big scale; in fact, one paddock had been completely sluiced out. “ This company has only a prospecting license on this claim, but it is actually sluicin'- the claim on a large dbale,” said Mr Main. “It seems an extraordinary position that a mining company should carry on sluicing operations under such conditions.” “ It seems highly improper that tin's should be so,” was the comment of the warden (Mr H. W. Bundle, S.M.). Continuing, Mr Main said the settlers in the district were complaining. In wet weather it was impossible to get past the road adjoining the claim owing to the sluicing operations, and under the circumstances he thought it pertinent that the matters be brought before the court. Moreover, the company had been using the creek as a tail race, thus robbing the settlers of a very necessary adjunct in these parts. Counsel asked that the Inspector of Mines furnish a report on the activities of the company. Mr Bundle said it was quite wrong for the company to work ground with only a prospecting license, and asked why it had not applied for a license. Mr A. R. Tait, who appeared for the company, and who asked that the application be withdrawn, stated that he was unable to give any reason for the company’s attitude. “lam supposed to act for the Ben Ledi Company, but I get no particulars whatever as to the work being carried out,” was his final comment. Mr Bundle said the Inspector of Mines would have to make a personal inspection of the area being worked by the company. He adjourned the ease'for a fortnight, pending an inspection and a report. UNITED PROVISIONS LTD. The of United Provisions Limited, Victoria, have decided to recommend a final dividend of 4 per cent, on preference shares, making 8 per cent, for the year, against 11 per cent, last year. The ordinary dividend of 2 Cer cent, is unchanged. Payment will e made on October 30. DOLLAR AND FRANC Press Association—By Telegraph—Copyright LONDON, October 14. (Received October 15, at noon.) The dollar is quoted at 4.89 J. The franc is quoted at 105.

THE SEARCH FOR GOLD

NEW MVER DREDGE MISHAP A breakdown has occurred in the Diesel engine on the New River Gold Dredging Company’s dredge, which will! necessitate _ the dredge laying up whilst repairs are made. The damaged parts were brought to Christchurch for repairs, and it is anticipated that within a few days satisfactory repairs will be made. ARGO RETURN The return of the Argo Gold Dredging Company for the week ended on October 10 was 70oz for 113 hours’ dredging, 11,500yds of material being trerfted. NEVIS SLUICING CLAIMS LTD. The manager and staff of the Nevis Sluicing Claims Ltd. returned to the claim on September 11, according to advice received from the secretary yesterday, and after spending a few days in cleaning out the race sluicing operations were resumed. The race was found to be in excellent order after the winter, and the water supply was more than adequate. ANTONIOS HYDRAULIC The Antonios Hydraulic Company commenced sluicing on September 1. Operations have been confined to the opening out of a paddock in the creek bed where the elevator is situated. All this work has been in ground previously hand-worked by the early diggers, whose timber work, tailings, etc., greatly hindered operations, besides which floods prevented work for several days on • end. Suction pipes are now clear of creek and floods, and ground unworkcd by old miners should be reached before the end of this month. The gold obtained so far is ooz 6dwt, but the _ yardage handled was very snlall owing to the difficulties mentioned above. The whole plant worked excellently, the water pressure being particularly good. Three shifts daily are being worked.

NEMONA DREDGE Owing to stoppages through repairs and successive floods, there was no wash-up at the Nemona Dredge last week. The dredge will wash up as usual this week,_ providing conditions do not further impede dredging. EMPEROR MINE, FIJI Gold won by the Emperor Mine, Fiji, for four weekly periods was reported as follows:—August 8, l,048oz; September 5, l,060oz; October 5,1,065.80 z: all fine gold. PLACER DEVELOPMENT LTD. Asnazfi Gold Dredging Limited, the issued capital of which is 1,500,000 dollars in 1,500,000 shares of one dollar each, and in which Placer Development Limited and Oroville Gold Dredging Limited, of London, each hold a 40 per cent, interest (600,000 shares), has declared its initial dividend of 5 cents a share, payable on October 9. Dividend warrants will be posted from Vancouver on October 20. NEON SIGNS (AUSTRALASIA) LTD. COMPANY IN NEW ZEALAND “ A company is being formed to exploit the New Zealand market, and it should bo quite a profitable transaction for this company,” said Mr S. W. Webb, chairman of directors of Neon Signs (Australasia) Limited, at the annual meeting in Sydney recently. Owing to the many calls to supply signs m Victoria a company had been started there. “ In order to keep in touch with the latest improvements,” said Mr Wehb, “ one of your directors wont abroad and secured control of some of the latest developments, and was successful in obtaining the solo rights to several new systems in Australia and New Zealand. The increases in profit give evidence of greatly improved business, and the future may be regarded with confidence.” PARA RUBBER COMPANY The directors of Para Rubber Company Limited, Christchurch, decided to pay a dividend of 5 per cent, per annum on October 7, to transfer £I,OOO to reserve, and to carry forward to appropriation account undivided profits amounting to £2,003 0s sd. The retir,/;l ors ’ Messrs J. A. B. Cookson, O. S. M Cully, C. J. Ronaldson, J. W. Simes. and H. T. Stubberfield, were re- 1 elected.

SOUTH BRITISH INCOME INCREASED The accounts of the South British Insurance Co. Ltd. for the 12 months ended August 31, 1936, show an increase in net premium income of £144,372, in all, £1,040,069, the highest since 1929. Reserves have again increased, and are £1,025,000 general and £1,209,003 specific. Dividend is unchanged at 2s 3d per £1 fully paid up share. Expenses ratio was reduced to 28.40 per cent, (against 31.03 per cent, last year), the losses ratio rising fractionally to 54.03 per cent. The underwriting profit recovered from £94,782 to £110,608. There was a further improvement in interests and rents received, which, allowing for rates and taxes, reached £129,130, and brings up a total, together with premium income, of £1,169,200. The total amount available for distribution is £239,739, and this has been dealt with by transferring £25,000 to reserve fund and £75,000 to contingencies reserve; interim dividend of Is 4d absorbed £68,776, and final dividend now recommended will require a similar amount. This leaves £2,187, which, with the balance brought forward (£219,730), makes a carry forward of £221,917. ADDINGTON STOCK SALE [Pee United Peess Association.] CHRISTCHURCH, October 14. Entries at Addington to-day were oi normal size except in the fat cattle section, in which there was an oversupply and a weakening of values. Store Sheep.—A line of 600 ewe hoggets averaged 33s 6d, and an outstanding pen, shorn as lambs, 365. Best wether hoggets sold at 24s to 265. Ewes and lambs were a shade firmer. Spring Lambs.—A brisk sale with best sorts making from 27s to 30s. Fat Sheep.—A smaller entry and last week’s rates were well maintained. Best wethers sold at 36s to 445; prime medium-weights, 33s to 355; others, down to 28s; best ewes, 33s to 395; good, 29s to 325; others, down to 225. Fat Cattle.—A heavy entry of 460 headl and an easing in values by 16s a head. Best steers realised £l4 to £l6 17s 6d; good, £l2 to £l3 15s; others, down to £9; beet heifers, £9 to £ll 10s; good, £7 10s to £8 15s; others, down to, £0; good cows, £8 to £lO 10s; medium, £6 to £7 10s; others, down to £5 15s. Fat Pigs.—-A good l sale for porkers, but slightly easier rates for baconers. Porkers made 33s 6d to 49s 6d (average po,- lb, 6d to 6|d); baconers, 52s 6d to £4 9s 6d (average per lb, 6|d to 6id).

Commercial Banking of £ s. d. Sydney 20 1 0 Bank of New Zealand ... 1 19 3 South British Insurance ... 4 11 0 Associated News 1 3 3 Huddart. Parker 1 17 0 Burns, Philp ... Australian Gas (A) 3 12 0 7 5 0 Berlei (pref.) • 1 9 0 Goldsbrough, Mort 1 14 3 Greater Williams 0 7 3 Henry Jones 2 5 6 Anthony Hordern Cash Orders (cont.; New 0 18 6 Zealand delivery) 0 15 4* Claude Neon 2 11 3 Mark Foy 1 12 6 Noyes Bros, (pref.) 1 5 3 Mount Morgan 0 14 4 • Mount Lyell 1 12 9 South Broken Hill 6 5 0 Tavua 0 1 3 Lady Shenton 0 2 0 MELBOURNE, October 14. Bonds were steady, Barriers firm, but industrials and Mount Lyells showed a slight reaction. Commercial Bank of Aus- £ s. d. tralia 0 IS 8 National Bank (£5 paid) 7 5 0 British Tobacco 2 8 0 G. J. Coles 3 17 9 Drug Houses 1 10 6 Australian Glass ... ...■ ... 4 16 9 Goldsbrough, Mort ... ... 1 14 6 Electrolytic Zinc 2 5 9 (pref.) 2 8 0 Victoria Nyanza 0 13 3 Mount Morgan 0 14 5 Mount Lyell ... ' 1 13 7i Broken Hill Proprietary ... 3 19 3 North Broken Hill 9 19 0 South Broken Hill ... ... 6 7 6 Zinc Corporation 4 18 0 Tongkah Harbour 1 0 0 Emperor 0 15 9 Waldas Shoes -... 1 17 0 Sulphide Corporation ... ... 0 17 3 Silverton Trains 1 19 6