Commerce, Mining, & Finance

Evening Star, Issue 22817, 27 November 1937, Page 14

Commerce, Mining, & Finance

REVIEW OF THE WEEK FLUCTUATING MARKETS AUSTRALIAN MINING SETBACKS THE AMERICAN INFLUENCE The past week has not been characterised by'the same marked fluctuations hs have occurred recently. The week opened fairly strong at lower levels and [maintained a fair amount of strength hntil the effects of the recession on Wall Street became noticeable, when the' undertone weakened. Business transacted during the week was comparatively light, and despite the recession there was not the selling pressure ■that has been recorded previously. The tone of the market is, however, very Uncertain, and it would seem that investors are relying on the overseas tnarket, particularly Mew York, for a lead. President Roosevelt appears to be making some efforts to recover the jground which has been lost, but he does hot seem to be receiving the support of the American public. Obviously they consider the position is such that St will take more than Government assistance to restore industry to its previous basis. The American investing public is adopting a very pessimistic outlook, and this outlook is being reflected on hiarkets throughout the world. The recent decline in New York is second Sir magnitude only to the slump of 5.929. Jf anything its decline is more rapid than that world-wide disaster of 1929. Followers of the Dow-Jones [theories are inclined to predict a further fall, and in that case the results may be very disastrous. London appears to be very confused. Last Monday was an extraordinary' day bn the Stock Exchange there. In the knorning the markets slumped and the Exchange the depression period.” -It was cabled Out as being “ black Monday.” In sharp contrast prices moved upward in the afternoon, the morning’s losses being more than compensated for, and Some prices finished higher than they had been for a day or two. Such a State of affairs undoubtedly indicates that London is definitely confused, and emphasises the uncertainty that is felt for the future. Commodities declined further during the week. Wool has shown another decline, giving farmers cause for anxiety. A cablegram received from London, bnd dated November 24, referring to the rabbit skin- sales, did not provide cheery reading. For even at a 50 per cent, decline skins were practically unsaleable. Yet trade in the United Kingdom is Still good, and it is difficult to reconcile the recent movements of the Stock Exchange with industry. Eventually the lead must come from the United States, land until such time as the confusion in that country is cleared up it would appear that the markets will continue on fairly low levels marked by fluctuations from time to time. Australian mining again attracted attention, bat provided the black spot on the local investment market, some issues reaching the lowest point of the [year. It must be remembered, howfever, that though these shares have been steadily; declining, from an investment angle they are more than a satisfactory proposition. Mount Lyells, for instance, in which there has been h large number of transactions, carried a dividend this year of 3s 6d for a £1 share. From a speculation point of View the shares have been disappointing, dropping steadily from £2 10s six months ago to £1 10s 9d yesterday, TREND OF THE MARKET. Banks Quiet. Little interest was displayed in this section during the week. There was a preponderance of sellers of Australian banks, values remaining steady. Nationals of New Zealand tended to ease. New Zealands lemained fairly firm at recent rates, although, to wards the end of the week a slight easing was noticeable. Four sales were recorded, three at £2 4s 8d and one at £2 4s 9d. insurance Steady. There was a sale of Standards at £3, but the rest of the section was quiet, quotations remaining fairly steady. Shipping Lifeless. There was not ranch interest shown in this section and values remained at recent rates. Meat Preserving. , New Zealand llefrigeratings (cont.) had sales at prices ranging from 9s 8d to 9s 3d. Southland Frozen Meats appeared slightly firmer. South Otagos and Waitnki Freezings were firm at recent rates. Loan and Agency. Goldsbrough, Morts, which company declared an interim dividend during the week of 2 per cent., eased perceptibly. One sale was reported at £1 11s 2d. Little interest was shown in the remaining stock, but there was a sale of Otago Farmers at 3s 6d. Coal Shares. ' Buyers showed some interest in West-port-Stocktons, both preference and ordinary, but no business was recorded. Miscellaneous Stocks. Australian industrials fluctuated in sympathy with Australian mining, and

finished easier. G. J. Coles declined severely and had sales at £4 Os and £4 Is 9d. and there wore further sellers at the latter price. Woohvorths Ltd. also declined but no sales took place. There was little change in New Zealand industrials. A sale of Dominion Fertilisers was recorded at £1 4s. There were further sellers at £1 4s 6d, but buyers displayed no interest. Brewery Fluctuations, New Zealand Breweries, which company during the week declared an interim dividend 0f,4 ;per cent., declined rather considerably and were available at £2 ss‘ 3d, cumulative dividend. Practically no interest was shown in the remaining section. Australian Mining. There was not the same volume of business in this section as in the previous week. The majority of sales were confined to Mount Lyell at prices ranging from £1 13s, 9d to £1 10s 9d, the latter being the lowest price recorded this year. Mount Morgans remained fairly firm, with buyers at 11s 3d. The remaining stocks all showed a decline following the trend of the metal market. New Zealand Mining. This section, too, was quiet. Nokoraais had sales at 2s Id and 2s 2d. Tills company recently advised a washup of 788 oz. Government Loans. Some interest was shown in this section but only one sale took place in the week under review, this being of 4 per cent. Stock (1946-49) at £lO3. Latest Sales. Sales since the last review have been as follow: Banking.—New Zealand, £2 4s 8d (3) £2 4s 9d. Insurance.—Standard, £3. Meat Preserving.—New Zealand Refrigerating (cont.), 9s 7d (3), 9s Bd. 9s 3d. Loan and Agency. Goldsbrough, Mort, £1 11s 2d; Otago Farmers (ord.), 3s 6d. Miscellaneous.—D.l.C. (ord.), 15s 3d; Dominion Fertiliser, £1 4s; G. J. Coles, £4 6s, £4 Is 9d; New Zealand Paper Mills, £1 6s 6d; Woohvorths (ord.), £4 19s 6d ; Broken Hill Proprietary, £3. Overseas Mining. Broken Hill South. £1 14s (3), £1 15s 9d (2); Electrolytic Zinc (pref.), £2,Bs 3d; Electrolytic Zinc (ord.), £2 5s (2), £2 5s 3d, £2 6s, £2 7s (4) ; Mount Lyell, £1 11s, £1 11s Id (3), £1 10s 9d (3), £1 12s (2), £1 12s 3d, £1 13s 3d (4), £1 13s 6d (4) £1 13s 9d (6); North Broken Hill, £2 8s 3d, £2 9s 3d (4), £2 9s 6d, £2 9s lid, £2 10s 6d, £2 10s 9d. £2 11s 3d; Mount Morgan, 11s sd, 11s 4d. New Zealand Mining.—Nokomai, 2s Id, 2s 2d. Government Loans.—4 per cent., Stock (1946-49), £lO3. AUSTRALIAN STOCK EXCHANGES Press Association —Bv Telegraph—Copvvigh: SYDNEY, November 26. Investors proceeded cautiously on ’Change to-day owing to the absence of New York information, but industrials. were weaker, nearly every issue selling at a concession. Banks were entirely neglected. , £ s. d.

MELBOURNE, November 26. There was a better closing tone in the market, but G. J. Coles and Myers were under pressure. Barriers, after a quiet opening, improved at the close. £ s. d.

FRUIT AND PRODUCE

Bray Bros. Ltd., Dunedin, report as follows for week ending to-day:— Scattered rains have fallen in some localities, but heavier falls are needed if crops are to improve. There is no doubt that the yields of wheat this season throughout the South Island will be considerably reduced. An odd line or two of late-threshed wheat is coming on the market, but this wheat is generally not suitable for milling. There is sufficient fowl wheat available in the South Island for requirements, and supplies in the North Island are being supplemented by imports from Australia. Fowl wheat, is worth to-day about 5s 9d per bushel, sacks extra, delivered in Dunedin. Most of the trade, however, is being done in under-grade lines, and these hro selling at 5s to 5s 3d per bushel, sacks extra, r Wholesale prices arc as follow; Flour: 200’s, £l3 15s 6d; 100 s, £l4 12s 6d; 50’s, £l4 17s 6d; •25 s £ls. 7s 6d. Bran: £5 5s per ton. Pollard: £6 15s per ton. Oatmeal: 2001 b sacks, £25; 25’s, £27. . . The oat market continues quiet, and sales are slow. Fair stocks are hold in stores. Some forward sales have been reported but sellers have now withdrawn their quotations m view of the drought conditions. ].'of prompt delivery A Gurtons are worth nominally 3s 6d f.0.t.,, s.i„ and B’s 3s 3d f.0.b., s.i. Odd lots are on offer from the country. The demand for chaff continues ouiet, with sales confined to small lots. The nominal value is £5 5s per ton, ex truck, sacks extra. Old season’s potatoes are now practically finished for the season. Any smalf lots reaching the market _ are saleable at £l6 to £l/ par on u. New potatoes from Pukekohe are now quoted at higher rallies. It is usual for the market to decline gradually at this time of the year, hut dry weather is restricting the supplies of new potatoes from the and Peninsula districts. At the present time there is a shortage of potatoes in the Dominion , . No changes as yet can be recorded in the seed markets, which remain quiet. The dry weather is affecting the demand from farmers, who are waiting for the rain before sowing, and the returns of seed next season are bound to be affected by the present drought conditions. , .. , . Last season’s fescue is just about cleaned up, but there is still a fair quantity of brown top in the stcres. The cocksfoot market remains unchanged. Wholesale prices are as follow; Chaff: Good, bright oaten sheaf, £5 5s for small lots, on store. Potatoes: White, £lB to £l7 per ton. ex truck, quality fr*®Bylar. ...., Dairy butter: Milled bulk, lid per lb; separator, lid per lb. Supplies wanted. ■ . Bacon, Is IJd per lb. - Hams, Is 2d per lb; boneless Is 4d. Eggs; stamped,- Is 4d, case Is 3d. Onions, Canadians, 20s per 1001 b bag. Honey, bulk, 6Jd to 7Jd per lb. Lard, bulk. 8d per lb. Per Dozen. — Lettuce, Is to 2s 6d. Spinach, Is. Beetroot, Is 4d. ■ Carrots, 2s to 2s 6d. Eggs, market rates. —Per Case.— Californian lemons, 65s New Zealand lemons, 10s to los. Australian Valencias, 255; Navels, 295. , Grapefruit, 42s 6d. Black grapes,- 36s to 3/s bd. Pines, 21s to 22s 6d. Bananas, 17s 6d to 20s. Apples.— Delicious, 9 s to 11s; Stunners, 8s to 10s; cookers, 6s 6d to Strawberries, Is 3d to Is 6d. Strawberries (jam), 7d to 9d. —Per Lb. —

Spring cabbage, Is 6d to is. Onions, 21s to 22s 6(1. Ruiiieras, 2idv Cheese, 7*d. Butter, storekeepers, lid. Bacon, official price list. Honey.—slb tins, 4s 9d; 101 b tms, 9s 3d. Beeswax, Is 6d. Eschallots, 2}d. Rhubarb, 2id to 3d. Tomatoes.—Local glasshouse, Is 6d to Is 8d; Christchurch glasshouse, Is 3d to Is 4d. . Cauliflowers, los to 17s. Potatoes, whites, 16s. New potatoes, local, 6d. New potatoes, Auckland, 3dPeas, 3d. Strawberries are coining forward in increasing supply from Central Otago and Outram. The market was fairly easy at the beginning of the week, but it timed ’ yesterday. Reports from growers state that the dry weather is affecting the crops, and that the season is akely to be a short one. Cherries are being received from Central Otago in very large quantities, with only the best quality bringing good prices. Supplies of tomatoes are increasing, but the market for choice quality lines remains firm. A shipment of Australian oranges is expected towards the end of the week hv the Waikouaiti from Sydney. A shipment will arrive by the Maungnnni, due on Tuesday from Melbourne. Prices are expected to come back a little on those ruling for the first shipments of Australian oranges. (looseberries are commencing to make an appearance on the market, and are meeting a keen demand. A shipment of Californian grapes, grapefruit, and lemons was expected at Auckland yesterday. A line of Canadian Delicious and .Jvuiathan apples is due to arrive next week. No further sunplies are expected this year from Canada. Both the North island and locallygrown new potatoes have been in keen demand during the week, and _ prices hove increased dailv. Sunplies of North Island-grown are difficult to secure, and reports from tho north

state that they will not be overplentiful for the next week or two. Prices in the North island have shown a sharp advance. Locally-grown new potatoes also have a ready sale. Green peas are in over-supply and the market is very weak. The market for asparagus has eased and supplies are difficult to place. The demand for lettuce is confined to prime quality. The bulk of the consignments are of poor quality, and these are hard to sell. Small lots of new season’s white turnips are in good supply. llhubarb is in short supply.

THE SHARE MARKET DUNEBIH STOCK EXCHANGE AUSTRALIAN MINING IMPROVES INDUSTRIALS EASE Australian mining showed a tendency to rise on this morning’s call-over, this rise being most pronounced in Mount Lyells and North Broken Hills. The former increased by Is on yesterday’s selling quotation, and by 7d on the buying, while the latter showed a rise of Is sellers, and Is 9d buyers, This rise, however, was not reflected in Electrolytic Zincs, both the preference and the ordinary shares declining. In contrast Australian industrials were less sure of themselves, Broken Hill Proprietary, fully paid, declined 6d on sellers’ quotation, with buyers standing Is 6d away. The rights remained unchanged. G. J. Coles dropped sharply, buyers offering £4, with no sellers. A sale of Coles was reported at £3 18s 9d, the lowest figure recorded so far this year. In the banking section, with the exception of Unions of Australia, all shares were marked down fractionally. Insurance, meat preserving, lo&n and agency, coal, and woollens remained fairly steady at recent rates. New Zealand Breweries had a sale at £2 ss, but on the call-over sellers were not interested in a buyer’s offering of £2 4s 6d, which indicated a drop of 3d on yesterday's quotations. SALES REPORTED. —Late Yesterday.— 4 per cent. Stock (1946-49), £lO3. Mount Morgan, 11s 4d. —This Morning.— G. J Coles, £3 IBs 9d. North Broken Hill, £2 8s sd, £2 8s 6d. Argo Gold, Is lOd. SALES ON ’CHANGE. —Late Yesterday.— New Zealand Refrigerating (cont.), 9s 3d. —This Morning.— Bank of New Zealand, £2 4s 6d. Woolworths (Sydney), £1 3s Od. New Zealand Breweries, £2 5«. North Broken Hill, £2 10s. SALE AFTER CALL. —Late Yesterday.— Electrolytic Zinc (pref.), £2 7s (4). Quotations as under:—

CALLS DUE. Farmers’ Trading Co. March 24. 31, and April 7 and 14. allotments, 2s a share ... ... Nov. 27 Broken Hill Pty.—new, 5s share Nov. 50

NEW ZEALAND ECONOMICS THE DANGER AHEAD BANK PRESIDENT'S ANALYSIS 11 The prosperity of New Zealand, like that of Australia, depends to a very great extent upon the returns received from the export of primary products. The rise in the prices of these products which has occurred during the last few years has therefore greatly assisted both dominions in recovering from the depression which was caused by the fall in these prices,” said Sir Thomas Buckland at the annual meeting of the Bank of New South Wales. “ In the 1936-7 season in particular export prices were very high, whilst production was generally well maintained. The value of exports for the season, in fact, was some 20 per cent, greater than that for the previous season, wool being responsible for tlft? major part of the increase. These higher returns have stimulated general economic activity within the country. Evidence of greater prosperity is afforded by the increase of private motor vehicles registered, radio licenses, totalisator investments, and the like. Commercial activity, such as bank debits and sales tax collected, points in the same direction. As a result the prosperity which resulted from the extremely good export season,” Sir Thomas continued, “ has enabled the Government to continue its general policy, and has disguised for the present the inevitable consequences of giving hostages to fortune. The Government, indeed, has been very fortunate, but there are now several dangerous influences at work which might spoil its good fortune. “ The chief factors (argued Sir Thomas) which are weakening New Zealand’s ability to face a fall in export prices are the large public works programme and the system of guaranteed prices. The necessity for a large public works programme at a time of high export jirices is a striking indication of the straits to which the Government’s policy has reduced private enterprise. Moreover, the weakness of the guaranteed price scheme is that it will lead possibly to the dangers of inflation by expanding central bank credit. “ The Government,” Sir Thomas continued, “is also interfering with private industry at a number of points. One of the most - important of these is the interference with labour. Labour legislation is raising costs of production and placing industry in a very difficult position. No doubt the Government relies on the Bureau of Industry to prevent any actual industrial breakdown, but apparently it has not realised ‘ that so long as costs are artificially high as a result of State interference there can be no health in the body economic.’ ” The net profits of the bank for the year ended on September 30 were £543,242. The amount carried forward into the account was £129.500. and interim dividends during the year absorbed £395,100. Out of the balance remaining the directors recommended the payment of 6s per share in Australian currency, which would leave £145,94to be carried forward.

NOTES FOR INVESTORS MARKET FOR TIN In stating at the annual meeting of Peninsula Tin N.L. that the statistical position of tin was not reflected in current prices, the chairman (Mr Ambrose Pratt) directed attention to what has been called a “ notorious feature of the tin market.” In September, for instance, a decrease of 2,629 tons in world stocks of the metal was accompanied by a fall of nearly £2O a ton in the price. Mr Pratt repeated a statement he has made before that the position of tin is less vulnerable than that of any other metal, thanks to the international tin enactment, which allows for the regulation of production according to consumption. At present consumers, instead of purchasing their requirements ahead, are buying from hand to mouth. There is a latent strength in the market, which will react to the benefit of producers when confidence is restored. MOUNT LYELL PROFIT Profit of Mount Lyell Mining and Railway Company Ltd. for the year ended September 3U, is nearly twice that of the previous year, states the Melbourne ‘ Argus.’ Although a greatly increased tonnage was treated, the lower grade of the ore was reflected in the production of almost the same amount of cathode copper as in the previous year. Allowing for the increase in the average price of copper of approximately 50 per cent,, the revenue of the company for the year must have risen by approximately £340,000. Considerably higher costs than those incurred in the previous year are therefore indicated. With the erratic state of the metal market in recent months it is almost impossible to form any idea of the company’s prospects for the current financial year, hut it should not be forgotten that the company has a considerable interest in the fertiliser industry, from which a steady income be obtained. In the previous financial year revenue from dividends amounted to £70,437. The latest profit. £343,852, represents nearly 23 per cent, on capital of £1,500,000. CAUTIOUS INVESTORS

The extent to which the money market in Britain has been disturbed by the prevailing uncertainties is shown by the failure of several large new capital issues last month. Two large municipal loans, one, a Hull Corporation 3J per cent, issue of £1,000,000. and the other a Sheffield issue of £2.500,000, were both undersubscribed, and the underwriters were obliged to take up 26 per cent, and 90 per cent, respectively Also, the Liverpool Council decided last month to accept the advice of the Bank of England to withdraw its proposed £3,000,000 3J per cent, loan for the time being. In Australia, although the security markets have been affected by conditions overseas, there are plentiful supplies of funds awaiting investment, and investors are in fact complaining about the paucity of first-class new issues. Very little new money has been sought by semi-government and municipal bodies in the last three or four months and this has been one of the factors contributing to the consistent hardening of the bond market. There seems little doubt that any first-class new issues would be welcomed Australia at present, but apparently in Britain investors are preferring to hold off new issues until the present crisis passes. FOREIGN EXCHANGES (British Official Wireless.) Press Association —By Telegraph—Copyright RUGBY, November 26. (Received November 27, at noon.) , The following are the mean closing rates: — Paris, franc to £1 147^ New York, dollar to £1 4.99 7-16 Montreal, dollar to £1 4.99 1-16 Brussels, belgas to £1 29.36 Geneva, francs to £1 21.59 J Amsterdam, Horins to £1 ... ... 8.981 Milan, lire to £1 94.18 Berlin, reichmarken to £1 ... Stockholm, kroner to £1 19-40 Copenhagen, kroner to £1 ... 22.40 Oslo, kroner to £1 , 19.90 Vienna, schillings to £1 ... ... 261 Prague, crowns to £1 -• 1411 Helsingsfors, marks to £1 2264. Madrid, pesetas to £1 ... ... nominal Lisbon, escudo to £1 * l6 Athens, drachmae to £1 5474 Bucharest, lei to £1 ... 6774 Belgrade, dinars to £1 216 Warsaw roubles to £1 ... ■■■. 26.21 Rio de Janeiro, pence to niureis 2 25-32 Buenos Aires, pence to dollar Montevideo, pence to dollar ... 33 X6-iO Bombay, pence to rupee 18 g Hongkong, pence to dollar ... 15 Shanghai, pence to dollar ... 144 Yokohama, pence to yen 14 Batavia, florin to 8 - 3tj

BLIND ISOLATION AMERICA AND PEACE LESSON OF WALL STREET SNOOKS Two severe Stock Market shocks have borne in upon Americans thac they cannot remain isolated from the dangers of foreign war, says the London ‘ Observer’s ’ New York correspondent. American economic well-being and political stability alike are seen by more and more citizens to be dependent in large measure upon the prevention, of war. Thus, although it would be an over-statement to say that public opinion has realised the merits of a strong policy of co-operation with other Powers interested in keeping the peace, there does seem to be less of blind isolationism in the air. Mr Cordell Hull, Secretary of State, has reiterated his policy. This, on the one hand, was to warn Japan that the United States was not forsaking its interest m the Far East, and, on' the other hand,. not to shoulder alone responsibilities there, which it was felt Great Britain should also bear. In short, while the Administration has the fullest comprehension . of Britain a problem in the Mediterranean, it nevertheless cannot stand alone in opposition to Japan. Once more, therefore, American foreign policy is a matter of compromises. For while Mr Hull was clearly, indicating that his basic purpose is opposition to the high-handed activities of the aggressor nations, President Roosevelt in a single terse statement from his yacht struck a completely different note in warning Americans that they remain in China at their own risk.

Such seeming inconsistencies spring from the same old cause, the necessity that American foreign policy shall not get too far ahead of public opinion. The vast body of American opinion Is still centred in the mid-Contin'ent are» between the Alleghenies and ■ the Rockies, where Europe and Asia seem equally remote, and it is easy to say “ Let us mind our own business.” The Administration’s problem is largely one of education, and Mr Hull has been trying to make it clear that the maintenance of international decency and the. final restoration of an ordered world depend in very large part upon American acceptance of definite responsibilities. The two slumps in the Stock Market recently served somewhat to bring this lesson home. For many Americans still regard the market as an index to national stability, and to see the sharpest break since the bad summer of 1933 makes them feel that the present degree of recovery may be far from per. manent. The threat of foreign war produces not only economic tremors. Mora thoughtful Americans, and there are many of them these days, fear that war conditions abroad would mean enforced centralised control from Washington, such as never has been seen before. They even fear that President Roosevelt himself might be swept into extremes, and that what he lias failed to achieve in attempting the “ packing ” of the Supreme Court because of the revolt of Congress, and public opinion, might be attainable during war emergency conditions. To critics of the Roosevelt Administration, a great war crisis forebodes a typo of authoritarian and centralised Government it might take many years to escape. . ■ To friends of the New Deal, the possibility of such controls is by no means altogether alluring, for the historic likelihood is that the midde-of-the-road Roosevelt policies would be replaced by something far more extreme. Moreover, the_ New Deal is not in- a budgetary position to stand a further inflation of expenses. There is even much sober scepticism about the chances of war markets creating a kind of feverish' prosperity in the United States. Mr Henry Wallace. Secretary of Agriculture, discussing the chances in relation to the bumper cotton crop, said: “ Judging from the last war, it would take a year of actual fighting before the price would go up. One of the curious things about the last war was-that, except in the case of wheat, it seemed to depress commodity prices at first, esn°cially cotton and hog productß,” This cotton crop is one -of the nation’s most serious economic difficulties to-day. The latest Government forecast is of a cron of more than 16,000.000 bales, which is 500,000 bales ■vreater than the August 1 estimates. The price has slipned severely. But the cotton bloc _in Congress pushed through 'a resolution against, President Roosevelt’s opposition, which Is intended to give growers a pegged price of 12 cents. Actually, as a result of chiselling by the Department of Agriculture, they will get an average of between 10 and 11 cents. While the .bounty of Nature embarrasses man. President Roosevelt is preparing to press forw"rd with his. campaign to recauture Congress through establishing ascendancy with publio opinion.

GOUFSEIUS DREOGSHG GO.

FB'UDV GF HEW EOARDS TO WSSi( LOWER SHOTOVER RIVER Since tlio. date of the Goldfields Dredging Company Ltd.’s annual meiting (August .‘3O) shareholders have followed with interest the progress made under the direction of the new board of directors. It will he recalled that at an extraordinary meeting of shareholders last ■’ June an assurance was given that the directors ■ woul3 resign in toto at the annual meeting. This was done, 10 nominations being received, with Mr J., M’Mullan topping the poll and being elected chairman. Before that meeting closed Mr M'Mullan promised to keep shareholders fully informed of progress and returns obtained by the dredge. In the following statement he makes his first report and explains the policy of the new board ;

Immediately after the election the directors arranged for expert independent reports on the dredge and the power plant, and as a result of those reports shareholders can’ rest assured that these assets are in reasonably good order, requiring only ordinary repairs and replacements which are to be usually expected. _ Certain replacements are necessary immediately and the necessary arrangements are being made to have these matters attended to. No definite offers for the purchase of either of these assets has been made to the company. In the case of the dredge an option to purchase was sought and the seeker of the option has now been informed that the company has no immediate, intention of selling the dredge and that in any case the figure mentioned is, in the opinion of the directors, far below the present day value. Protracted negotiations have resulted in nothing definite having been done regarding the power plant and the directors are of the opinion that the company would be ill-advised to sell at the figure which has been suggested in the past, especially as the supply of power must be available to the company for some years. The directors have visited the claim and were able to avail themselves of the experience and advice of four experts in dredging, who were able to be present at the time. Three of these gentlemen were very experienced in dredging ■in New Zealand, and the fourth was experienced in dredging overseas as well as in New Zealand. * As a result of the advice obtained from these experts, it was decided to go ahead with plans for dredging the Lower Shotover River after the present claim is worked out. This will take about eight to 12 months and certain improvements m the method of working are being made to try and secure greater returns from the ground yet to be worked. Particular care is being taken to ensure dredging to a greater depth and in the matter of saving the fine gold. These matters will take a few weeks before they can be finalised. Steps have been taken to secure the extra dredging area of approximately 500 acres extending from a point on the Lower Shotover below where the dredge was operating before it was acquired by the company, right down to where the Shotover River joins the Kawarau River. It was on the Lower Shotover where this dredge, immediately after it was purchased by the company, secured the following consecutive , weekly returns — 28ozs. 36ozs, 35Jozs, 24ozs.* and 26ozs. then for three weeks’ dredging in old tailings, and returns were, Bozs, sozs, and lljozs; then for fortnightly periods the returns' were 20ozs, 58ozs, 75ozs, and 22ozs lOdwt.

The directors are confident that the comnany has Rood assets and that with good management a long life is assured. No doubt ’there will be some criticism about, taking the dredge down to the Lower Shotover through the Gorge, which was negotiated on the way up to Big Beach, hut assurances have been given by competent, men thaj; this can be safely nccomolished when the time comes. The dredee-master in charge is absolutely confident and assures the directors that there is no danger to the dredge itself. Having decided upon this policy you may see, therefore, that the directors must pursue a very careful course to ensure an uninterrupted supply . of power for the dredge, and this must, of necessity, be the guiding factor and the basis of any further negotiations for the disposal of the company’s power plant.

As there are now no Dunedin residents on the board, it has been found more convenient to have the registered office of the .cpmpanv. in Timaru, and Messrs Enting and Enting, 241 a Stafford street, Timaru, have been appointed secretaries. QUEENSLAND INSURANCE INCREASE IN DIVIDEND The Queensland Insurance Company Ltd. has declared a final dividend of 4s- - cent., making 8J per cent. The payment in the previous year was 8 per cent, and also a special jubilee bonus of 2 per cent., a total of 10 per cent. TOOTH'S BREWERY FINAL DIVIDEND RATE The Dunedin Stock Exchange has received advice from Tooth’s Brewery intimating that the final dividend rate will be 11 per cent, per annum. DOLLAR RATES. The Associated Banks (other than the Baua 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 fil N.Z.) SELLING— T'.T, (dol) ... 4.00 i 4.00 3-16 O.D. (dol) ... 4.00 15-16 4.00 916 BUI'tNG O.D. (dol) ... 4.04 15-16 4.04 9-1 S

Associated News’ ... 1 3 H Associated News (pref.) ... ■1 3 6 Colonial Sugar ... 45 15 0 Burns, Philp ... , 2 14 0 British Tobacco 2 9 9 British Tobacco (New Zealand delivery 2 9 9 Tooths o 12 9 Tooheys .. ... 1 11 9 G. J. Coles ... ... ... ... 4 0 9 Australian Glass ... 4 4 9 Dunlop Perdriau 1 2 0 Anthony Hordern 0,18 6 General Industries ... ... 0 18 7 Kandps ... '... ... ... ... 1 3 0 Felt and Textiles ... i.. 1 15 3 Gordon and .Gotch 2 13 0 G’oldsbrough, Mort Fairymead Sugar 1 1 10 12 9 3 Woolworths (ord.) 1 4 0 Mount Morgan 0 11 5 Mount. Lyell ... ... 1 11 6 Broken Hill Pty. 3 0 3 North Broken Hill 2 10 0 South Broken Hill ... ... 1 15 9 Kuala Kampar 0 18 0 Rawang , 0 10 2

Comm. Bank of Australia ... 0 16 11 National Rank (£10 paid) 14 0 0 British Tobacco 2 9 9 Carlton Brewery 3 1 6 G. J. Coles 3 18 9 Australian Glass 4 5 0 Dunlop Pcrdriau ... 1 2 2 Dunlop Perdriau (pref.) ... 1 17 0 Goldsbroupb Mort 1 11 0 Hume Pipe 1 0 0 Australian Foundation Investment Trust 0 5 3i National Reliance Investment Trust ;. 0 11 0 Myers ... 1 11 0 Electrolytic Zinc ... 2 5 0 Electrolytic Zinc (pref.) ... 2 ? 9 Mount Morgan 0 11 6 Mount Lyell 1 11 10 Mount Lyell 1 11 10i Broken Hill Pty 3 0 0 North Broken Hill ... 2 10 3 South Broken Hill 1 15 6 Emperor 0 12 2 Loloma 0 17 1

Buyers. Sellers. £ s. d. £ s. d. BANKING— Australasia (£1) ... — 11 P 0 New South Wales ' (£20) 32 0 0 — Now Zealand (£1) ... 2 4 0 2 4 9 New Zealand, Long “ D ” (£1) 1 9 0 — Commercial (10s) — 0 17 2 National of New Zealand (£2 10s) ... ... — 2 18 0 Union of Australia Ltd. (£5) — 9 9 0 INSURANCE— National (7s) .. ... — 0 17 9 New Zealand (£1) ... 3 4 0 3 5 0 Standard (£1) ... ... — 3 0 3 SHIPPING— Huddart, Parker (ord., £1) — 2 2 0 Huddart, Parker (pref., £1) 1 7 3 — P. and 0. Deferred Stock (£1) ■ 1 4 0 — U.S.S. Co. (pref., £1) 1 6 9 r— MEAT PRESERVING— N.Z. .Refrigerating (paid, £1) i.. ... — 1 0 0 N.Z. Refrigerating (cont., 10s) 0 9 0 0 9 5 Southland Frozen (paid, £1) 1 7 9 1 8 6 South Otago Freezing (£5) 5 12 6 — Waitafci Farmers’ Freezing (£5) ... ... 4 10 0 5 0 0 LOAN AND AGENCY— Dalgety (£5) — 10 0 0 Goldsbrough, Mort (£1) !— X XV 0 National Mortgage (£2) ... — 2 8 0 National Mortgage (“ B " Issue, £1; ... 111 0 N.Z. Loan and Mercantile (ord , £100) 50 0 0 70 0 0 N.Z, Guarantee Corporation (5s) ... ... — 0 4 11 Otago Farmers’ Co-op. (5s 4d) 0 3 3 0 4 3 Otago Farmers’ Coop. (A prct., £1) 1 0 0 — Trustees Executors and Agency (£2) ... 3 15 0 — Wright, Stephenson (ord., £1) 1 2 0 •— Wright, Stephenson (pref., £1) .V. ... 1 0 6 COAL— Kaitangata (16s) ... 1 4 6 — Westport (16s) 1 5 0 — Westport-Stockton (ord., IQs) 0 2 5 0 2 9 Westport-S ocktou (pref,, 10s) 0 5 0 WOOLLEN COMPANIES Bruce (ord., £1) — 0 11 0 Kaiapoi (pref., 17s) — 0 17 3 Oamaru (£1) — 0 19 0 Wellington (pref., £5) — 6 0 0 Tiniaru (£1) ... ... ■ 0 17 0 MISCELLANEOUS— Anthony Hordern (£1) — 0 18 9 Australian Glass (£1) — 4 6 0 British Tobacco (£1) — 2 10 0 Broken Hill Proprietary (£1) - 2 18 6 3 0 0 Broken Hill Proprietary (rights) ... ... ... X 7 3 1 8 0 Brown, Ewing (pret., £1) ... ... ... ... --r 1 2 0 Brown, Ewing (ord.. £1) r— 1 2 0 Colonial Sugar Co. (£20) — 46 10 0 D.I.C. (pref., £1) ... 1 3 6 — Dominion Fertiliser (£1) .... — 1 4 6 Dominion Fertiliser Debs 103 0 0 — Dunedin Stock Exchang c Proprietary (£1) 2 2 0 — Dunlop Perdriau Rubber (£1) ... —- 1 2 5 General Industries (12 6d) ... — 0 13 0 G. J. Coles (£1) 4 0 0 — Hume Pipe (£1) ... — 1 0 0 Milburn Lime and Cement (£1) — 2 1 0 M’Leod Bros. (£10) 26 10 0 — Mort’s Dock (£1) — 0 10 9 Moturoa Oil (pref., 5s) — 0 5 0 National Electric (£1) — 0 13 6 N.Z. Drug Co. (£2) — 3 14 3 N.Z. Newspapers (16s 8d) ... 1 17 0 — N.Z. Paper Mills (£1) 1 5 9 — 'Otago Daily Times (£1) 2 5 9 — Regent Theatre (£1) 0 19 6 — Shillings Ltd. (£1) — 0 19 0 Smith and Smith (prof., £11 — 1 2 0 Taranaki Oil (£1 4s 7d) 0 6 0 0 6 S Wilson’s (N.Z.) Cement (10s) ... — 0 19 0 Woolworths (pref., £1) , , - — 1 18 0 Woolworths (ord. £1) — 5 5 0 W-olworths (Sydney, £1) 1 2 6 — BREWERIES— New Zealand (£1) ... 2 4 6 — Dominion (£1) — 2 0 6 Dunedin (£1) ... ... —. 1 11 0 Tooth’s (£1) ' — 2 14 6

UNLISTED STOCKS— Selfndges, N.Z. (12s) 0 10 0 — Selfridges (£1) ... . A. and T. Burts •— ' 1 7 0 (prof., £1) 0 12 6 0 17 6 OVERSEAS LIST— Woohvorths (South Africa) 0 13 10 — OVERSEAS MINING— Austral N Z. Mining (15s) — 0 15 0 Broken Hill South (5s) ... 1 14 9 1 15 9 Electro. Zinc (pref., £1) ... 2 7 3 2 8 0 Electro. Zinc., (ord.. £1) 2 4 0 2 5 0 Mount Lyoll (£1) ... 1 11 3 1 12 0 Mount Morgan (2s 6d) 0 11 3 — North Broken Hill |5s) 2 9 9 2 10 6 .Placer Development — 3 13 0 Rawang Tin (10s) ... 0 10 6 GOLD. MINING— Big River (Is) 0 12 0 1 8 Clutlia. River (2s) 0 2 0 0 3 0 Consolidated Goldfields (4s) — 0 3 6 Gillespie’s (Is) „ 0 1 6 Kildare (2s) — 0 1 0 Mossy Creek (Is) 0 10 — Nokomai (5s) 0 16 0 2 2 Okarito (5s) — 0 3 6 Sandhills (Is) 0 0 1 0 0 2 Waipapa Beach (Is) — 0 0 24 N.Z. GOVERNMENT LOANS— 3J p.c. Stock, Nov., 1933-52 101 0 0 102 5 0 3i p.c. Stock, Mar., 1939-43 — 101 10 0 3i p.c Stock, Mar., 1941-43 101 0 0 — 34 p.c. Stock, Sent., 1941-43 101 0 0 — 34 p.c. Stock, May, 1941-52 101 10 0 — 34 p.c. Stock, Nov., 1941-52 101 10 0 — 4 p.c. Stock, 1946-49 102 17 6 — 4 p.c. Bonds, 1952-55 105 0 0 — 4 p.c. Stock, 1952-55 105 0 0 DIVIDENDS DUE. Dunedin Stock Exchanj; e — inNov. 30 terim, 2i per cent. Farmers’ Trading Co. — halfyearly, A and B pref., 5 3-5 per cent, per annum ; and O Nov. 30 pref., 5 per cent, per annum N.Z. Malay Rubber—5 per cent., making 8 per cent. per an. Nov. dU Claude Neon—final, 4 per cent. Dec. 4 Henry Jones Co-op.—Is share 6d per Dec. 1 Swan Brewery—ordinary 6d per Dec. 1 share Wilson Dunedin Brewery and Malt Extract Company—idterim at 7 per cent, num per anDec. 1 Wilson’s Cement — interim, 4Jd Dec. 8 per share North Broken Hill—quarterly, Is Dee. 8 3d per share Kuala Lumpus Tin—bonus, Is per Dec. 9 Golden Sands—Id per share Dec. 10 Bulolo —l.SOdol (Canadian), less Dec. 10 Placer Development — 60 cents Dec. 10 (Canadian), less tax _ halfBank oi Now Zealand vearlv. Is per share ord., 3J per cent. D long-term mortsate issue Dee. 11 Broken HiU South—Is 3d per Dec. 17 Mt. Lyell — final, 2s per share, making 3s 6d per share per annum Dec. 20 Tonekah Compound Tin—Is per share and bonus Is per share Morris, Hedatrom (Fiji)--interim. 3 per cent Dec. 01 Victoria Nyanza Sugar cent. — 6 per Jan. 26