Commerce, Mining, & Finance

Evening Star, Issue 22577, 19 February 1937, Page 6

Commerce, Mining, & Finance

THE SHARE MARKET DUNEDIN STOCK EXCHANCE Ti»».*as a fair turnover at the call-over of the Huuedin Stock Exchange this mornihir, the most notable feature being a further rise in Mount Lyells. There was a sale after the call at £2 10s 9d, which represents a rise of 3s 4d in the last r In the banking section New Zealands had business reported at £2 Is, which is an nnpfovement of 6d on yesterday. E.S. and A, Banks were also sold at the unproved price of £6 7s 6d, the closing quotations being. £6 6s buyer, with sellers 2s away. There was a close market for National Insurances, 3d separating buyers and sellers, p. and 0. Deferred Stock was m better demand, an unsupported buyer quoting £1 13s 3d. New Zealand Refrigerating shares were a little weaker, no buyers quoting. Threepence separated buyers and sellers of Westport Coals, but no business was effected. In the miscellaneous section there was no change in Broken Hill Proprietary, and the quotes for G. J. Coles were too wide to permit of business, Mort s Docks were sold at 6d above yesterday s price, and further buyers at 13s 9d failed to attract a seller. There was a firm undertone for New Zealand Breweries, but no business was done. Electrolytic Zincs, preference and ordinary, were botli firmer.' Mount Morgans showed little chapge. In the local gold mining section Okaritos wore sold at Is 9d, the closing quotation being 3s 6d and 4s 3d. New Zealand Government loans were quiet. SALES REPORTED. Bank of New Zealand, £2 Os Sd (odd parcel). LATE SALES YESTERDAY. New Zealand Refrigerating (cont.), 9s 2d (cum div.). Dunlop Perdriau Rubber, 19s , 2d. Dominion Brewery Rights, 10s 3d. SALES ON ’CHANGE. Dpndop Perdriau Rubber, 19s 2d (2). Mort’s Dock, 14s 3d. Okarito, 3s 9d. SALES AFTER CALL. Bank of New Zealand, £2 Is (2). E.S. and A. Bank, £6 7s 6d (2). Broken Hill Proprietary (coht.), £3 13s. Mount Lyell, £2 10s 9d,

THE RESERVE BANK ASSETS AND LIABILITIES [Pan United Press Association.] WELLINGTON, February 18 The ‘ Gazette ’ issued to-night oontains_ the following statement of the liabilities and assets of the Reserve Bank of New Zealand as at the close of business on February 17. The figures at the close of the previous week are given for purposes of comparison, shillings and pence being omitted:— LIABILITIES.

DAIRY PRODUCE PRICES

WHY ARE THEY DOWN ? PROVISION TRADE OPINION A New Zealand merchant house, eliminated from the dairy produce export business through the Government marketing scheme, has received from a large Importer and dealer in dairy produce in the United Kingdom (not an agent of the Marketing Department of the New Zealand Government in London) a letter dated London, January 28 1937, received by air mail in New Zealand on February 16, and reading as follows: — “ You no doubt know the trend of the butter market, and have nouced the decline which has occurred during the last month or six weeks. In our opinion this has not been due to any statistical situation; we feel that it is almost entirely due to the method of marketing adopted by the New Zealand Government since the Labour Party came into power. It is a most remarkable thing that they seem to think that speculation on their product is detrimental to the interests of the producer, while, as a matter of fact, there is no possible argument in favour of this opinion. Take cheese, for example: Today New Zealand cheese, which is practically unobtainable here, is selling at 525, after a severe decline from 74s at the time the first arrivals of Govern-ment-controlled cheese came to this country. If it were possible for the large Tooley Street interests to speculate in New Zealand cheese we are certain the price would be at least 60s, and possibly higher, for one reason alone: there is practically none obtainable; but the parties who in the past have sustained the cheese market by speculation and intelligent anticipation are not to-day allowed to speculate in this product. “ Canadian cheese is selling at 72s because the buyers of Canadian < noose during the producing season had to purchase this cheese from the producer, and therefore, with the situation that is existing here to-day, see no reason whatever to do anything but make a profit on their purchases; almost the opposite occurs in New Zealand che6SG. “ Take Danish butter selling at 120 s to-day, and n good demand. New Zealand butter 80s, with three of the largest importing consignment houses anxious to support the market if they were allowed, not only because they feel that prices are low enough, but because they hold large quantities of Australian and European butter which cost them much, higher prices, and on which they will now probably lose quite a lot -of money because they cannot support the New Zealand market, which is sagging almost every day. “ Dutch butter which Was last summer sold at 12s discount under New Zealand is now at a 4s premium over New Zealand. Polish butter, which this last summer was sold at 20s under New Zealand, is to-day making the same price, and, in fact, New Zealand buttei is the cheapest on the market here today with, the exception tf Argentine. “ We have tried to search everywhere for any other reason than the present marketing system adopted by the New Zealand Government, but we are unable to find one. “ We have had extremely had weather here, practically no winter, and conditions are not at the present time favourable ■to a large consumption of butter. Stocks here are much heavier than last year, being 884,000 boxes against 375,000 at the same time last year, but we anticipate a very good:, demand during April, May, and Juno' owing to the Coronation, and do noli think these present stocks are excessive when everything is considered.”. •;

PRICE GUARANTEE OPPOSED [Per United Press Association.] DANNEAQRKE, February 18. The Provincial Executive of the Southern Hawke’s _ Bay Farmers’ Union passed a motion that it was emphatically opposed to the principle of guaranteed_ prices, and, having in view the position with regard to guaranteed prices for the dairy industry, strongly protested against a fixed price for wool and meat being brought into effect. The mover, the president (Mr J. Livingstone), considered that the policy of fixed prices was only taking the credit of an important industry for creating liabilities for the country which would become a serious burden upon the industry in future. No matter what prices were fixed for wool and meat the farmers would have to pay in the end. SYDNEY WOOL SALES Press Association—By Telegraph—Copyright SYDNEY. February 18. At the wool sales 11,961 bales were offered and 9,305 sold, while 2,887 were disposed of privately. There was a brisk demand for the best classes of fleece wool and skirtings, but other types were irregular, with values distinctly lower. Better descriptions of comebacks and fine cross-breds were in fairly good demand at late rates Greasy merino made 28d.

AUSTRALIAN MARKETS

Press Association—By Telegraph—Copyright SYDNEY, February 18. Wheat: Bagged is available at 5s 2d. Bulk wheat in the country is quoted at 4s sd, which is equal to about ss, ex trucks Sydney Flour, £l2 15s. Bran, £6. Pollard, £6 10s. Potatoes: Tasmanian, £7; Victorian. £6. Onions: Victorian Globes, £l2: white. £lO. _ Maize: Yellow, 5s 6d; white, 5s 8d

BETTER TIME FOR DOMINION

FAVOURABLE BALANCE STATISTICS REVEAL POSITION A marked increase in business activity over the Christmas period is noted in the official monthly abstract of statistics for January, in its review of business statistics. “ The principal interest in the economic statistics,” states the review, “ is the evidence they afford of Christmas turnover and of holiday spending. ißank debits in December were running at a level much higher than in that month for several years previously, while the net note circulation in Christmas week broke all previous records. Sales tax collection in November and December reached new record figures—indicative of an exceptionally busy Christmas shopping season. MOTOR LICENSES. “ Judging by the number of motor vehicles licensed, road traffic was exceptionally heavy during the holiday period, while totalisator investments showed a marked increase over the previous year’s figures. Withdrawals from the Post Office Savings Bank m December totalled £2,641,239, an increase of £253,415 over the total in December, 1935. Despite the substantial increase in withdrawals, deposits during the month exceeded withdrawals by £8,170, whereas in December of 1935 there was an excess of withdrawals over deposits of £120,117. “ During the calendar year 1936 business conditions showed signs of material improvement. There was an increase in factory production for 1935-36, while employment in factories touched a new peak level. “The later months of the year showed a material reduction in the still considerable number of unemployed, each month showing a marked improvement in comparison with the corresponding month of the previous year. PRIMARY INDUSTRIES. “Returns from primary producing industries are being greatly enhanced by the relatively high level of wool values, while prices of other types of farm produce .are showing welcome signs of improvement. Prospects for the current season are quite favourable, except that orchard production is expected to be. relatively poor. “ A new record total of export values (in New Zealand currency) was reached in the calendar year 1936, while imports also showed exceptional buoyancy. “ The terras of exchange of goods are once more moving in New Zealand’s favour; prices of farm products and raw materials showing a greater measure of improvement than prices of manufactured goods. Since New Zealand’s exports are almost entirely farm products, while her imports comprise in the main manufactured goods or semi-manufactured goods, this trend is definitely in the Dominion’s favour. The New Zealand export price index for December was 17 per cent, higher than a year previously, largely due to an increase in the index of 55 per cent, for wool, though the other major groups also showed an upward movement, the, dairy produce figure being 8.8 per cent, and the meat figure 8.1 per cent.”

Quotation* a« under:— Buyers. Sellers. £ 3. d. £ s. d. BANKING— New South Wales ... 35 12 6 New Zealand 2 0 5 2 1 0 Commercial ... ... ... 0 19 4 0 19 7 Commercial (pref.) ... 9 1 0 ■ —> E.S. and A. ... 6 6 0 6 8 0 National of New Zealand ... 3 1 0 3 2 0 National of Australisia ... ... ... ... IS 13 0 — Union'of Australia Ltd. ... ... - 10 17 0 INSURANCE— National 0 18 6 0 18 3 New Zealand ... .... 3 1 3 5 0 South British — •0 Standard ... - — 2 19 0 SHIPPING— Howard Smith ... .... 1 5 6 P. and'O. Deferred Stock 1 18 3 _ U.S.S. Co. (pref.) ... 1 6 0 MEAT PRESERVING— N.Z. Refrigerating (paid, cum div.) ... N.Z. Refrigerating (cont.) ... South Otago , Freezing ... 7 12 6 1 0 0 9 4 3 Waitaki. Farmers’ , ; - Freezing J.. '... ... 4 2 0 • V LOAN AND AGENCYGoldabrough, Mort... • r .1 18 3 Mortgage Corporation 3J per cent. Stock, 98 10 0 ' National Mortgage (“B” Issue) ..... — 1 13 6 N.Z. Loan and Mercantile (ord.) ... ' — 45 0 0 N.Z. Guarantee Corporation ... ... ... Perpetual Trustees ...' 0 5 3 0 5 3 4 6 0 Trustees, Executors, , and Agency ... " Wright, Stephenson* 3 12 0 - (ord.) ... ... — 0 18 3 . ■ *— Wright, Stephenson (pref.) ... ... ... 0 19 0 1 0 0 COAL— Kaitangata 1 2 0 Westport 1 4 0 1 4 3 WOOLLEN COMPANIES Bruce (ord.) 0 11 6 0 13 0 Kaiapoi (ord.) 0 14 0 0 14 6 Kaiapoi (cont.) — 0 6 0 Mosgiel 9 19 0 * MISCELLANEOUS— Anthony Hordern ... 1 0 6 1 1 0 Associated Newi (pref.) ... 1 4 0 Australian Glass 4 13 0 4 15 0 British Tobacco — 2 13 6 Broken Hill Proprietary 4 4 3 4 6 0 Broken Hill Proprietary (cont.) 3 13 6 Brown, Ewing (ord.) 2 2 6 _ Brown, Ewing (pref.) 1 2 6 Colonial Sugar Co. ... 42 10 0 — Consolidated Brick ... — 0 11 0 D.I.C. (ord.) 0 16 0 ' — D.I.C. (pref.) 1 3 6 — 6 Dominion Fertiliser ... 1 4 0 1 4 Donaghy’s Rope and Twine 2 11 6 Dunlop Perdriau Rubber ... 0 19 1 0 19 3 General Industries ... .— 1 0 4 6.* J. Coles ... 5 6 6 5 8 0 Hume' Pipe 1 1 3 — Milburn Lime and Cement ... 2 2 3 2 3 6 Mort’s Dock 0 13 9 . — National Electric — 0 15 3 N.Z. Drug Co. ... ... 3 16 0 — ‘ Otago Daily Times ’ 2 6 0 — Regent Theatre 1 0 6 v — Shillings Ltd Wilson’s N.Z. Cement 0 18 6 — 1 19 0 Woolworths (ord.) ... 7 T 0 — Taranaki Oil 0 2 6 0 3 0 BREWERIES— New Zealand ... ,,, 2 18 3 Staples’ ... — 1 16 0 Dominion — 2 5 0 Dunedin — 1 9 6 Carlton — 3 6 6 OVERSEAS MINING— Broken Hill South (£1) 2 11 0 Electrolytic Zinc (pref £1) ’ 2 18 6 3 0 0 Electrolytic Zinc (ord. £1) -... 2 17 3 2 18 3 Emperor Mines, Fiji (10s) — 1 o' 0

Mount Lyell (£1) ... 2 10 0 2 11 0 Mount Morgan (2s 0 17 6d) 0 17 0 3 Placer Development 5 3 0 Rawang Tin (10s)' ... 0 11 9 — 0 12 6 Sulphide Corporation — 0 15 0 GOLD MINING— Big River (Is) — 0 1 8 Clutha River (2s) ... 0 2 9 — Gillespie’s (Is) 0 16 0 1 7 Goldfields Dredging 0 0 (Is) - 4 King Solomon (Is) ... — 0 0 8 Molyneux River (2s) 0 2 4 — Maori Gully (Is) ... — 0 0 7 Nokcraai (5s) 0 2 3 0 2 6 Okftrito (5s) 0 3 6 0 4 5 Paddy’s Point (5s) ... — 0 2 9 Skippers (Is) — 0 0 3i Waimumu Sluicing ' (Is) ... 0 0 11 — Waitahu (5s) “ 0 2 4 Worksop (la) 0 17 N.Z. GOVERNMENT LOANS— 34 d.c. Stock, Nov., 1938-52 101 0 0 101 17 6 34 p.c. Stock, March, 101 17 6 1939-43 — 31 p.c. Stock, Sept., 1939-43 - i02 0 0 34 p.c. Stock, May, *1939-52 — 102 5 0 34 p.c. Stock, March, 1941-43 ... 101 0 0 — 3i p.c. Stock, Sept., 1941-43 101 0 0 —* 34 p.c. Stock, May, 1941-52 ... ... - 101 0 0 — 34 p.c. Stock, Ncv., 1941-52 101 0 0 ' 4 p.c. Stock, 1946-49 — 103 5 0 4 p.c. Bonds, 1952-55 102 0 0 — 4 p.c. Stock, 1952-55 — 103 0 0 DIVIDENDS DUE Carreras Ltd.—half-yearly pref., 5 per Cent.'; interim ord. lOd per share (equal to 33 1-3 per cent. per annum) Eeb. 22 Winchcombe, Carson—half-yearly at rate of 8 per cent, per annum ... Feb. 22 Quill Morris (1936)—final 24 per cent, at 5 per cent, per annum Feb. 24 National Mortgage and Agency (N.Z.)—5 per cent, per annum Feb. 24 Gillespie’s Beach—Id a share (8 1-5 per cent.) Feb. 24 Bank of N.S.W.—Interim, quarterly, 6l per share Feb. 25 Standard Portland Cement, Syd-ney-half-yearly at 8 per cent. per annum *60. Australian General Investment Trust—5 per cent Feb. 26 Kuala Lumpur Tin—Is per share Feb. 26 Equitable Building—4 per cent, per annum Feb. 26 Bilverton Trams—9d per share ... Feb. 26 Carlton and United Breweries— Mar. dividend and bonus, Is 3d <•> 1 Standard Insurance—half-yearly, Mar, Is 3d per share (unchanged) 1 Christchurch Gas—interim at rate Mar. of 7 per cent, per annum ... 1 Elder, Smith—interim, at 6 per Mar. cent, per annum ... 1 W. R. Carpenter and Co.—interim at 8 pCr cent, per annum ... Mar. 15 Electrolytic Zinc—half-yearly, 6 per cent, on ord. and pref. ... Mar. 18 Huddart, Parker, Ply.—final, pref. 5 per cent, or 6 per cent, per annum; ord, 4 per cent, or 74 per cent, per annum Mar. 20 Broken Hill South —Is per share Mar. 24

FOREIGN EXCHANGES ; ■■ : r, , i --r■: 6K NEW ZEALAND CURRENCY BASIC The Bank of New South Wales, Dunedin, Quoted the following rates for purchase and sales of foreign exchanges (all rates subject to alteration without notice): — Buying. Selling. London— £100 stg. N.Z. ... ... T.T. £124 £124 10/ O.D. £123 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. 3.95| 3.921 O.D. 3.97* 3.921 Montreal— Dollars to £1 N.Z. ... T.T. 3.96 3.92i O.D. 3.971 3.93 Austria— Schillings to £1 N.Z. ... T.T. -n. rdU.SB O.D. — 20.60 Belgium— Beiges to £1. N.Z. ... T.T. — 23.184 O.D. 23-195 Czechoslovakia — Crowns to £1 N.Z. ... T.T. . 111.96 O.D. 112.01 Denmark— Kroner to £1 N.Z, ... T.T. 18.203 17.893 O.D. 18.263 17.903 France— Francs to £1 N.Z. ... T.T. . 04.23 O.D. — 84.27 Germany— Beichmarks to £1 ' N.Z. ... T.T. — 9.701 O.D. — 9.706 Holland — Florins to £1 N.Z. ... T.T. 7.293 7.143 O.D. 7.353 7.147 Italy— Lire to £1 N.Z. ... T.T. 74.51 O.D. — 74.56 Java — Florins to £1 N.Z. ... T.T. 7.287 7.097 O.D. 7.317 7.101 Norway— Kroner to £1 N.Z. ... T.T. 16.181 15.891 O.D. 16.241 15.901 Sweden— Kroner to £1 N.Z. ... T.T. 15.785 15.490 O.D. 15.845 15.500 Switzerland— Francs to £1 N.Z .. T.T. 17.419 17.149 O.D. 17.524 17.154 Noumea— Francs to £1 N.Z. ... T.T. — 82.86 O.D. 82.92 Papeete— Francs to £1 N.Z. ... T.T. — 83.01 O.D. — 83.07 Hongkong— N.Z. pence to 1 dollar ... T.T. 18 9-32 18 25-32 O.D. 18 1-4 18 49-64 India and Ceylon— N.Z. pence to 1 rupee ... T.T. 22 13-32 22 11-16 O.D. 22 3-8 22 43-64 Japan— N.Z. pence to 1 yen ... T.T. — 17 31-64 O.D. — 17 15-32 Shanghai— N.Z. pence to 1 dollar ... T.T. 17 13-16 18 5-16 O.D. 17 25-32 18 19-64 Singapore— N.Z. pence to 1 dollar ... ... T.T. 34 47-64 35 7-32 O.D. 34 41-64 35 13-64 Chefoo — N.Z. pence to 1 dollar ... T.T. 17 53-64 18 29-64 O.D. 17 25-32 18 7-16

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:— U.S.A. Canada, (Per £1 N.Z.) (Per £1 N.Z.) SELLING— T.T. (dol) 3.92| 3.92$ O.D. (dol) 3.92$ 3.93 BUYING— T.T. (dol) 3.96 3.95$ O.D. (dol) ..., ... 3.97$ 3.97$ AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, February 18. Mount Lyell and Barriers moved up again to-day on the Stock Exchange, where there was considerable activity and a strong tone in all other investments. MORNING SALES. £ s. d. Commonwealth Bonds— 4 p.c., 1938 101 12 6 4 p.c., 1941 101 15, 0 4 p.c.. 19S0 100 0 0 National Bank (£5 paid) ... Bank of New South Wales 7 14 6 37 2 6 Tooheys 1 17 0 Tooths 2 17 9 British Tobacco 2 13 6 Broken Hill Propy 4 6 0 Broken Hill Propy. (new) 3 13 6 Drug Houses 1 7 4$ Electrolytic Zinc 2 18 0 Electrolytic Zinc (pref.) ... 3 0 0 Henry Jones 2 7 3 AFTERNOON SALES. Bank of New South Wales 37 2 6 Commercial Banking of Sydney ... 23 0 0 National Bank (£5 paid) ... 7 15 0 Queensland National Bank (ex div.) 5 10 0 United Insurance 11 10 0 Associated News ... 1 4 3 Associated News (pref.) ... 1 3 n Adelaide Steam 1 12 6 Australian Gas (A) •7 7 0 British Tobacco 2 13 6 Tooths 2 17 6 Tooheys 1 17 0 Coles 5 7 6 Australian Glass 4 15 0 Dunlop Perdriau 0 19 4 Electrolytic Zinc 2 18 9 David Jones 2 5 0 Mauri Brothers 3 13 6 Cement Mortars ... 0 11 4 Commonwealth Wool ... ... 1 0 104 Newbold Brick 1 16 0 Newhold (10s paid) ... ... 1 5 0 Victoria Nyanza 0 16 6 General Industries ... ... 1 0 6 Mopnt Morgan ... Mount LyelH... ... X.Jt ... 0 17. 2 8 1* Zino Corporation ... ... 8 0 0 Kuala Katnpar 12 10$ Rawang ... 0 12 0 Emperor ... ... ... 0 19 9 Tongkah Harbour /. 1 3 li MELBOURNE, February 18. There was very strong Barriers and Mount Lyeus, buying of while the main feature of the market for Indus* trials was a firmer tendency. £ s. d. Commercial Bahk of Australia 0 19 8 National Bank (£10 paid) 16 16 0 Howard Smith 1 3 11 British Tobacco 2 13 0 Carlton Brewery ... ... ... 3 6 9 Coles 5 8 0 Drug Houses of Australia ... 1 7 9 Australian Iron and Steel (pref.) 1 7 6 Australian Glass 4 15 0 Dunlop Perdriau 0 19 5 Electrolytic Zinc ... ... 2 17 9 Electrolvtic Zino (pref.) ... 3 0 0 Hume Pipe 1 1 9 Yarra Falls 2 1 6 Sulphide Corporation 0 14 0 Mount Morgan 0 17 3 Mount Lyell 2 9 3 Broken Hill Proprietary ... 4 5 6 North Broken Hill 4 2 0 South Broken Hill 2 0 4$ Zino Corporation 8 0 0

Ust Week. £ 1,500.000 This Week. 1,^0,000 2. Bank notes ... 12,915,400 12,870,789 3. Demand liabilities— (a) State ... 3,188,304 5,908,752 (b) Banks 11,978,935 11,475,790 (c) Other 175,193 828,556 4. Time deposits ... — — 5. Liabilities in currencies othet than New Zealand currency — 6. Other liabilities ... 143,184 143,792 Total ... ... £31,901,087 £32,727,087 ASSETS. 7. Reserve— (a) Gold ... 2,801,790 2,801,790 (b) Sterling exchange 18,801,531 18,431.012 (c) Gold exchange ... — — 8. Subsidiary coin ... ... 100,856 150,258 y. Discounts— (a) Commercial and agricultural bills — — (b) IVcasujy and local body bills — 10. Advances— (a) To Stab- o. State undertakings— ID Dairy industry accoun 5.785.313 6,372.388 (2) For other purposes 1,800,000 1,800,000 (b) To other public authorities (c Other ... II. Investments 2,453,030 2,453.050 13. Bank buildings — 13, Other assets ... ... 08,543 650,188 Total £31,001,087 £32,727,087 Proportion of restive (No. 7 less No. 5, to notes and other demand jiabili(IC:i 71.397% G8.50I%