Commerce, Mining, & Finance

Evening Star, Issue 22804, 12 November 1937, Page 6

Commerce, Mining, & Finance

Share Market Steady Unemployment Decreasing Overseas The upward trend of the market which became noticeable on Wednesday was maintained on the Stock Exchange this.morning. The market is finding a temporary level, at least, and the call-overs are generally brighter. It is impossible, of course, to predict the future, but it is something that the barograph of the share market is rising from stormy and approaching set fair. More sales are taking place, and Australian mining, particularly Mount Lyell shares, has been attracting considerable attention, although this section was fairly quiet this morning. A steady decline in unemployment in industrial countries is shown in figures issued by the International Labour Office recently. These figures do not cover only those countries where labour is cheap but others where it is dear, and the big drop in those of Great Britain is most encouraging. An interesting reference to the value of advertising, and the extent to which it creates goodwill, will be found in an article reprinted from the - Accountant, ’ London. In tl;e balance sheet of Pharmaceutical Products Ltd. advertising expenditure has been treated as an asset.

LESS UNEMPLOYMENT IN INDUSTRIAL COUNTRIES APPRMCHING 1929 LEVELS Statistics from 15 of the principal industrial countries which- have been tabulated by the' International Labour Office show: that unemployment is fast approaching the 1929 level. For every 100 unemployed workers in these countries in 1929 there were 235 in 1931, 291 in 1932, and 277 in 1933. But by the first quarter of the, present year there were only I*l3. The countries are: Australia, Austria, Belgium, Canada, Czechoslovakia, Dbmark, Great Britain, Italy, Japan, the, Netherlands, 'Norway, Poland, Sweden, and the United States. ' ■ • ’ '.

FRUIT AND PRODUCE ORANGES STILL SCARCE EARLY FRUIT COMING TO HAND Reilly’s report that during the week fair supplies were received, and met with a satisfactory inquiry. Apples came to hand ex cool store, and lirst grade lines netted good values. There was a good demand for cut flowers. Oranges are in short supply, but this position is only temporary, as full supplies will shortly be obtainable, commencing with the shipment on the Waikouaiti, due about November 18. A small shipment by the Maunganui realised high prices. There was a better inquiry for New Zealand lemons, smaller supplies ofi which were received. Ripe bananas drew satisfactory inquiries, and supplies of green Samoans and Rarotongans that came to hand during the week arrived in good condition.

jit the depth of the depression in 1933,' the .table discloses,, Australia had 126 per - "cent, more unemployed than in 1929,. but by the first quarter of 1937 unemployment in Australia was 11 per cent, below the 1929 level.

Transhipments of Californian grapes ex the Mariposa were received. Fair consignments of Christchurch and local hothouse tomatoes are now available, and values remain steady. Increased consignments of green peas and new potatoes are resulting in easier values. Asparagus is in short supply, and realises fair values. Increased consignments of gooseberries are available, and some _ nice lines of strawberries and early varieties of cherries are coming in from Central Otago. Fresh vegetables have a good inquiry, cauliflowers are in short supply, but other lines are plentiful, with the exception of carrots, which are bringing high prices. Rhubarb has firmed in price. Old potatoes are practically finished, and any consignments forwarded bring very high vflues. Increased supplies of North Island new potatoes are now arriving. Only small supplies of whitebait were received, and values firmed. Eggs advanced one penny per dozen. Fair supplies of poultry were sent in, satisfactory values being obtained. SEARCH FOR GOLD WEST CBAST DREDGES [Per United Press Association.] GREYMOUTH, November 11. The Mossy Creek dredge reports a return of 350 z 6dwt for B,l7lyds treated in 130 hours. The Worksop dredge’s return is 13oz for 130 hours’ dredging. The Argo dredge is not washing up this week on account of repairs to the machinery. AUSTRALIAN PRICE OF GOLD The price fixed by the Comonwealth Bank for gold, including jewellery, lodged at the Melbourne Mint for the week ended October 29, was at the rate of approximately £7 19s 9id per ounce standard (22 carats), equal to a premium of £105.17 per cent. Payment is made according to the assay value of the gold. The price was 4id per ounce lower on the week. The price per ounce fine was £8 14s 3Jd, which was s]d lower on the week. WINDING UP OF COMPANY An extraordinary general meeting of members of the Nevis Diesel Electric Dredging Company Ltd., will meet on Thursday evening next, when the following resolution will be considered:— “ That the company cannot by reason of its liabilities continue its business, and that it is advisable to wind up, and that accordingly the company be wound up voluntarily.” DALGETY AND GO. PROFIT AND DIVIDEND Pres* Association —By Telegraph—Copyright SYDNEY, November 11. Dalgety and Co. Ltd., in a preliminary statement, report a net profit for the year of £173,000, compared with £146,800 the previous year. A dividend on the 6 per cent, preference capital shares absorbs £25,000. The interim dividend of 3| per cent, on ordinary shares is to be supplemented by a final dividend of 4J per cent., making 8 per cent, for the year, less British income tax, and requiring £120,000. The ordinary dividend the previous year was 6 per cent.

la Canada the depression was at its wbrst in 1933, when. registered unemployment was 291 per cent, greater than in’ 1929. ' By the' first quarter of 1937 unemployment was still 126 per cent, greater than in 1929. In Great Britain, where' the • depression reached its depth in 1932, unemployment* was. then 113 per cent, greater than in 1929, but by ..the first quarter of 1937 it was only 13 per cent, above the 1929 level. Another’table, showing the number of workers in employment in various countries, "discloses' that for every 100 workers with, jobs in 1929 there were only 83 in 1931 and 75 in 1932. But hy March of the , current year there v.cie 97. VALUE OF ADVERTISING INCLUSNN 1H BALANCE SHEET “An interesting problem in the treatment of advertising expenditure occurs in the accounts of Pharmaceutical Products Ltd.,” remarks the * Accountant ’ (London). “As a general rule it can be presumed that successful advertising creates goodwill, the permanence of which will probably depend on the persistency of the advertising campaign. Some portion of the expenditure may therefore be carried forward as an asset, which as an intangible,- -however, will wisely be written off over a reasonable period of years. In this case we have a company formed in 1933 and controlled by Savory and Moore Ltd., the well-known chemists, having ns one of its original objects the raising of capital for the development : by advertising of business in a number of proprietary articles. In last year’s report the directors stated that ‘ publicity expenditure. was the main object for which the capital was subscribed.’- The question arose when the auditors expressed their opinion in the audit certificate that ‘ provision should be made out of revenue for a proportion of the publicity expenditure to date.’ The directors duly noted this comment, but having stressed the fact that the- capital was mainly subscribed for advertising, went on to state that they experienced difficulty in deciding the amount of the publicity expenditure. which should be charged each year to profit and loss account. Legal advice was taken, and it was decided to leave the whole amount of the expenditure in the balance sheet, and to allow the balance on the profit and loss account to accumulate. The auditors express their opinion to the same effect this year.” • MELBOURNE NEWSPAPERS ‘ Herald ’ and ‘ Weekly Times ’■ Ltd., 'Melbourne, earned a net profit of £218,130 for the year ended September 30, compared with £168,676 in the previous year and £150,217 in 1935. Dividends of 12 per cent, on ordinary shares and 6J per cent, on preference shares absorb £140,120, and £50,000 is transferred to reserve and £20,000 to dividend equalisation reserve. With £35,234 brought into the accounts, £43,244 is carried forward. MOUNT MORGAN PRODUCTION [Pas United Press Association.] WELLINGTON, November 12. The Stock Exchange has received the following cablegram from Mount Morgan Limited, giving the production report for the four weeks ended November 10:—Ore mined, 57,928 tons; ore treated—sulphide 28,550 tons, oxidised 26,867 tons; estimated production —gold 5,1190 z, copper 179 tons.

FOREIGN EXCHANGES ON NEW ZEALAND CURRENCY BASIS 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)

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: — TJ.S.A. CANADA. (Per £1 N.Z.) Per £1 N.Z.) SELLING— T.T. (dol) ... 3.99 7-8 3.99 5-8 O.D. (dol) ... 4.00 5-16 • 4.00 1-16 BUYING— O.D. (dol.) ... 4.04 5-16 4.04 1-16 WESTPORT COAL COMPANY A SATISFACTORY YEAR After providing for bad and doubtful debts, depreciation, and all charges, and making provision for £I,OOO for the staff provident fund, the profit of the Westport Coal Company for the year ended on September 30 (states the annual report) amounts to £23,811 14s 9d, to which must be added the sum of £12,873 7s 4d brought forward from last year, making a total of £36,685 2s Id. An interim dividend of 6d per share was paid for the half-year ended on March 31, which accounted for £11,250. This leaves a balance of £25,435 2s Id, out of which the directors propose to pay a dividend of 6d per share for the half-year ended on September 30, the balance of £14,185 12s Id to be carried forward to next year’s account. Messrs Edgar C. Hazlett and James Begg retire from the board, and, being eligible, they offer themselves for reelection. LONDON WOOL SALES Messrs Murray, Roberts, and Co. Ltd. have received the following cablegram from London, dated November 9 :—The undermentioned vessels have arrived in time for the consignments of wool by them to be offeree! in the next series:—Arawa, Cornwall, Waimana, Rangitane, .Waiwem, Essex,

Buying. Selling. London— £100 stg. N.Z T.T. £124 £124 10/ O.D. £123 10/ £124 8/9 Australia — £X to £100 N.Z T.T. £101 £101 10/ Fiji— £F to £100 £89 N.Z T.T. £90 7/6 New Pork— Dollars to £1' 4.0328 3.9982 N.Z. ... T.T. O.D. 4.0428 4.0022 Montreal — Dollars to £1 3.9965 N.Z. ... T.T. 4.0290 O.D. 4.0410 4.0005 Austria — !1 ... T.T. Schillings to i N.Z. 20.88 O.D. — 20.89 Belgium— Belgas to £1 N.Z. ... T.T. 23.808 23.498 O.D. 23.883 23.509 Czechoslovakia — Crowns to £1 113.37 N.Z. ... T.T. — O.D. — 113.42 Denmark — Kroner to fil 18.203 17.893 N.Z. ... T.T. O.D. 18.263 17.899 France — Francs to £1 117.09 N.Z ... T.T. — O.D. — 117.13 Germany — £1 Reichmarks to 9.864 ■ N.Z. ... T.T. — O.D. — 9.869 Holland — Florins to £1 7.346 7.196 N.Z. ... T.T. O.D. 7.386 7.200 Italy— Lire to £1 76.00 N.Z ... T.T. — O.D. — 76.05 Java — Florins to £1 7.319 7.169 N.Z ,. T.T. O.D. 7.359 7.173 Norway — Kroner to £1 16.183 15.893 N.Z. ... T.T. O.D. 16.243 15.899 Sweden — Kroner to £1 15.785 15.845 15.490 15.496 N.Z. ... T.T. O.D. Swtizerland — Francs to £1 17.528 17.258 N.Z. ... T.T. O.D. 17.633 17.263 Noumea — Francs to £1 115.84 N.Z ... T.T. — O.D. — 115.88 Papeete— Francs to £1 115.89 N.Z. ... . ... T.T. — O.D. — 115.93 Hongkong— N.Z. pence to dollar 1 ... T.T. 18 29-64 18 53-64 O.D. 18 27-64 18 53-64 India and Ceylon— N.Z. pence to 1 22 21-32 rupee ... ... T.T. 22 3-8 O.D. 22 11-32 22 21-32 Japan— N.Z. pence to yea 1 ... T.T. _ 17 33-64 O.D. — 17 33-64 Shanghai— N.Z. pence to 1 18 1-8 dollar ... . ... T.T. — O.D. — 18 1-8 Singapore— N.Z. pence to 1 34' 23-32 35 13-64 dollar ... T.T. O.D. 34 5-8 35 13-64 Chefoo — N.Z. pence to 1 18 5-32 dollar ... T.T. — O.D. — 18 9-64 Manila — N.Z. pence to 1 30 7-64 peso ... ... T.T. 29 39-64 O.D. 29 33-64 30 7-64