Commerce, Mining, & Finance

Evening Star, Issue 22873, 3 February 1938, Page 6

Commerce, Mining, & Finance

Controlling Price of Tin The Future for Wool Investment Market Slightly Firmer The New York market yesterday finished slightly lower with a decline in the turnover. Railroads slipped .89 and industrials .91. An improved undertone marked operations on the local market this morning, with advances recorded in Commonwealth industrial and mining issues. Business was restricted, however, and dealings in the room were limited to transtasman stocks. London Stock Exchange circles consider likely the revival of a tin buffer pool early this year, but a definite announcement is not expected until after February 18. The previous tin buffer pool was dissolved a few years ago after huge stocks, accumulated during the depression, had been liquidated. The objects of the pool would be to stabilise the price of tin, probably at £220 a ton. Sustained purchasing on the part of the Continent and additional buying on Russian account has inspired the English wool trade with greater confidence, states Winchcombe, Carson Ltd. There is no reason to anticipate that the quantity of wool available this season will not find purchasers, although prices may not show much variation on present levels. A large regain in American and Japanese activity would be necessary to produce a substantial advance, and at present that does not appear probable. The directors of the Apex ' Investment Trust of New Zealand Ltd. have declared a final dividend at the rate of 6 per cent, per annum, for the half year ended December 31..

WOOL MARKET RUSSIAN PURCHASES | STIMULATES ENGLISH TRADE The simultaneous offering of wool - in Australia and London did not have ill effect on prices. Continental _ and Yorkshire have been well maintained. The sustained purchasing on the part of the Continent and the additional purchasing experienced on Russian account has inspired the English trade with greater confidence than was evident earlier in January (states .Winchcombe, Carson Ltd.). Russia up to recently has been somewhat of a disappointment as a buyer of wool. She has shown genera) industrial expansion, and hopes were held . that the needs of her nulls for apparel class wools would necessitate constantlyincreasing imports. Her clip totals 202,100,0001 b or about 673,000 bales of Australian weight. Only 9 per cent, of it is fine in quality, 20 per cent, semicoarse, and the balance coarse. The whole of the wool is consumed internally. Latest statistics available show that Russian wool imports in 1935 were 71,000,0001 b and 1936 57,500,0001 b, the latter total being approximately 191,666 bales, but a considerable portion of that quantity consists of scoured wool purchased on the Continent and in the United_ Kingdom. Gradually Russia is rebuilding her flocks, which receded from 133,000,000 head in 1928 to 45,400,000 in 1933. The number in 1936 was 64,000,000, *and it was planned to increase the total to 81,000,000 in 1937. CONTINENTAL DEMAND. The most noteworthy development in wool buying this season is on Continental account. Germany and Italy, which have particularly increased their production of artificial fibres, have bought in notably larger volume. Exports of wool from Australia to Germany from July 1 to December 31 were 96,914 bales, an increase of 23,881 bales on the 1936 total for the similar period, and shipments to Italy 71,916 bales, an increase of 26,743 bales. an extended period stocks of wool in Germany and Italy have been declining owing to the severe restriction in imports. Replenishment has become necessary. * At this, season’s prices appreciably greater quantities of the sheep’s staple can be obtained for a given amount of money than last year. That fact has no doubt given impetus to their purchasing. , At the same time the blending of artificial fibres with woo) should tend to cheapen goods, and by that cause encourage their purchase. In addition the blended fabric has not the wearing capacity of the pure wool textile, therefore necessitating quicker replacement. Production of artificial fibre has no doubt exercised some curb on the price of wool, but, despite the large output, the world has absorbed its clip. There is no reason to anticipate that the quantity of wool available this season will not find purchasers. Prices may not show much variation on present levels. A large regain in American and Japanese activity would be necessary to produce a substantial advance, and at present that does not appear probable, i PRICE Of GOLD Press 'Association—By Telegraph—Copyright LONDON, February 1. Fine gold is quoted at £6 19s 7d per ounce. LONDON STOCK EXCHANGE Press Association—By Telegraph—Copyright LONDON, February 1. Dalgety 4 per cent. Debentures, £9B; British Tobacco, 38s 6d; Goldsbrough, Mort, 24s 9d; Dalgety, 128 s 9d; P. and O. Deferred, 23s 1-Jd; Clutha River Company, Buyers Is 104 d, sellers 2s ltd; Molyneux River Company, buyers Is 4Jd, sellers Is fid.

COMPANY NEWS BURNS, PHILP NEW] SUBSIDIARY FORMED. The registration has heen announced of the _ Burns, Philp Trust Company Ltd. with a capital of £50,000 in £1 shares. This is a new subsidiary of Burns, Philp and Company Ltd. formed to’take over the trustee and. agency business hitherto handled by the parent company. All the capital is held by Burns, Philp and Company Ltd. The directors of the. subsidiary are Messrs James Burns, Robert Noswqrthy, Lewis Armstrong, and Joseph Mitchell, all of whom are directors of Burns, Philp and Company Ltd. VICTORIA NYANZA SUGAR PROSPECTS LOOK PROMISING. “ Prospects of the Victoria Nyanza Sugar Company Ltd. in the coming season look promising,” said Mr G. Lucas, who presided at. the annual meeting of the company. To January 1, he said, 7,170 tons of sugar had been produced compared with 6,878 tons to the same date last year. There had been an improvement in the price of sugar on the London and local markets as a result of the allotment of quotas by the Sugar Conference. The company was benefiting, although not to the extent expected, as advances in native wages, freights, and the introduction of income in Kenya had to a certain extent minimised that advantage. To the end of October the company had had to export only 25 per cent, of its sugar. In 1936 nearly 50 per cent, was exported. Tests had been conducted on "the Miwani property, and it was possible that a valuable supply, of water for irrigation purposes might be obtained. Steps were now being taken more definitely to determine the position, as against the average yield of 26.41 tons of cane to the acre at Miwani one large block under irrigation yielded nearly 56 tens an acre. Application had heen made for permission to divert from the Ainomatua River 13,500,000 gallons of water a day to irrigate the Cheraelil property. APEX INVESTMENT TRUST FINAL DIVIDEND AT 6 p.c. p.a. The directors of the Apex Investment Trust of New Zealand Ltd. have declared a final dividend at the rate of 6 per cent, per annum for .the half-year ended December 31. The dividend, subject to confirmation by the shareholders', will be payable immediately after the annual meeting, to be held on Thursday. March 17. Substantial increases in capital, liquid assets, and net profits are disclosed. AUSTRALIAN GAS LIGHT GO. The Australian Gas Light Company Ltd., Sydney, have advised that the transfer books and register of proprietors of the company will be closed from February 10 to February 24, both dates inclusive. Transfers to he registered before the books are closed should be lodged with the company by February 5.. MARCUS CLARK ALLOTS SHARES Marcus Clark and Co. Ltd. advise that fully-paid shares of 10s each have been allotted to first_ and second preference shareholders in satisfaction of arrears of dividend. DOLLAR AND FRANC Press Association—Bv Telegraph—Copyright LONDON, February 1. The dollar is quoted at 5.01 9-IG. The franc is quoted at 152£,

NEW YORK SHARE INDEX DOW JONES AVERAGES

SYDNEY WOOL SALES Press Association—By Telegraph—Copyright SYDNEY, February 2. At the wool sales 10,183 bales were offered at auction, and 8,800 sold, 955 of them privately. Satisfactory clearances were effected, with good comper tition from the Continent, Yorkshire, and Japan. Greasy merino made 22d. AUSTRALIAN STOCK EXCHANGES Press Association —By Telegraph—Copyright SYDNEY, February 2. Assisted by the rise in wool values and the improvement in overseas metal markets, the local Stock Exchange today was' brighter in tone. Many industrial issues hardened, although the turnover was limited. No further drift occurred in metal prices. Banks were slow. MORNING SALES.

MELBOURNE, February 2. The market responded to the better ton© in New York and London, al-

ANTWERP FUTURES Press Association—By Telegraph—Copyright LONDON, February 1. Antwerp futures are steady. March, 24d; May, 23Jd; July, 23|d. THE SEARCH FOR GOLD SANDHILLS MINING The manager of the Sandhills Gold* Mining Company Ltd. has advised of a wash-up of 78oz 13dwt from a further paddock on Tucker Beach. The plant is now being shifted to the eastern side of the river. ■ COLOMBO TEA SALE Mr L. M. Wright has received the following cabled report on the Colombo tea auction of February 1: The market for common teas was slightly easier, and medium and fine grades remained firm at last week’s rates. The quality of offerings showed an improvement, and supplies coming forward are moderate. A total of 1,875,0001 b has been catalogued for auction next week.

NOTICE TO ADVERTISERS. ORDERS BY TELEPHONE. Experience has shown that in the US9 of tho TELEPHONE ERRORS EASILY OCCUR in Words and in the Names of Persons, although the messages are read back to the sender, and occasionally there are Misconceptions in Instructions. ADVERTISERS ARE REQUESTED TO WRITE THEIR ANNOUNCEMENTS. And Not to Trust to a Telephone Message, as we cannot hold ourselves responsible if errors occur.

TIN BUFFER POOL POSSIBLE REVIVAL OF SCHEME TO PREVENT VIOLENT MARKET FLUCTUATIONS The revival of a tin buffer pool early this year is considered likely in Stock Exchange circles in London. A definite announcement, it--is believed, may be delayed until the next meeting or the International Tin, Committee at The Hague on February 18. The previous tin buffer pool was dissolved a few years ago after hugs stocks, accumulated during the depression, had been liquidated. The objects of the pool would be to stabilise the price of tin, probably at £220 a ton. Advocates of the project contend,that the' last buffer pool, whatever the objections lodged against if, did succeed- in preventing the violent market fluctuations which have often aroused market controversy. r The scheme for the resurrection of the pool has recently gained further adherents. The ‘ Financial Times ’ states that, while members of the International Tin Committee are almost unanimous’ in support of a buffer pool to impliment the quota regulations, a section of Malayan opinion is resolutely antagonistic. In market circles, however, : although such a move would not be popular, the reactionary price trend of recent months has tended to reduce

opposition to a measure which would definitely curb speculation. Tin consumers, particularly those in the United States, which absorbs nearly half of the world’s total output, are in favour of market regulation. In addition, the majority of producers support the plan. On the other hand, market opinion admits concern at the deterioration of the tin statistical position. Visible stocks have expanded, and invisible stocks have been considerably augmented, particularly in the United States. Under the 1938 quota production has been calculated at almost 170,000 tons, while consumption has been estimated at about 160,000 tons. Any marked recovery in industrial activity in America, however, would transform the whole outlook within a short period.' Should the pool bo reintroduced it is understood that its administration would be placed in the hands of one man, independent of the industry. Possibly a small sub-committee would' act in an advisory capacity. '

COTINE NEW TEXTILE FIBRE The announcement is made that production is to be started on a commercial scale of a new natural textile fibre produced by a textile chemist after many years of botanical and chemical research, says the ‘ Manchester Guardian.’ The new fibre, which goes by the name of cotine, was grown experimentally on the Continent last year. A company was formed in England to develop it commercially. Cotine is a perennial plant resembling cotton l in many ways, but less costly to produce. It will grow in most temperate climates in semi-tropical countries. The claim has been made that it has a staple strength of 40 per cent, greater than, cotton, and that in this respect it is the nearest fibre to flax. It can be spun alone on existing spinning machinery or in combination with other commercial fibres. Yarns produced from cotine can be used in the manufacture of a variety of fabrics for clothing purposes, including woven and knitted underwear. Because it is absorbent another use may be the manufacture of towellings. PLANTING IN ITALY. Supplies of roots and seeds of the plant are in the possession of the British company, as also is the process for treatment of the raw fibres. For some time the company has been negotiating with a view to issuing licenses for cultivation rights. Now it is announced that an agreement has been reached with an Italian company; planting will begin in Italy. Licenses have also been granted in Canada and Poland, and there are negotiations with Sweden and Japan. The war with China and difiiculties that have arisen over raw material’imports have stimulated the interest of Japanese cotton spinners in the new textile fibre, which it is said could be grown successfully in Japan, It is believed that cotine may also find a use in the wool industry. Tests under actual mill conditions with a mixture of 50 per cent, cotine and 50 per cent, wool have produced a yarn equal in strength to wool. It is, it is stated, scarcely disinguishable from wool, except that it is more glossy.— like mercerised cotton. The treatment and final manufacture from the specially prepared fibre are carried out on standard machinery as used in cotton, silk, woollen, or linen mills. The fibre, it is stated, dyes well after spinning and weaving. ; By-products of cotme have also a wide commercial use.

v EXCHANGE RATE ON NEW ZEALAND CURRENCY lABK The Bank of New South Wales, Dunedin, quoted the following rates for purchase end sales of foreign exchanges (all rates subject to alteration without notice): —

DOLLAR RATES. The Associated Basks (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£l N.ZJ SELLING— T.T. (dol) ... 4.01 7-16 4!oi 7-19 O.D. (dol) ... 4.01 7-8 4.01 13-18 BUYING— O.D. (dol) ... 4.05 7-8 4.05-13-18

ADDINGTON MARKET INCREASED PRICES IN SOME SECHINS [Feb Dotted Puses Assocutiok.] CHRISTCHURCH, February 2. There was a brighter tone at to-day"* Addington market- and a slight firming in prices for some classes of stock. ' Store Sheep.—About 12,500 were penned, nearly 10,000 being wether lambs. The best of the rape lambs were dearer by Is a head and other sorts firm at last week’s rates. Best sorts made from 18s to 19s 2d, twotooth Chatham Island ewes sold at 30s. and six-tooth and - eight-tooth local ewes at 21s 3d. Best wethers made to 21s 6d. ... Fat Lambs.—The yarding totalled 1,700. and these sold at full export rates, butchers exceeding the. schedule for heavy sorts. The best prices were from 26s to 29s for tops, n - Fat Sheep.—Five thousand seven hundred were penned and there was a keen sale.., Exporters brought ewes freely at up to 18s and 19s, and light wethers to 275. For all heavy sheep last week’s rates were fully maintained. Light wethers were Is dearer. Best wethers brought:from 32s 6d to 365, good, from 29s to 325; and inferior down to 245, Beet ewes realised from 23s to 265; good,f rom 20s to 22a 6d; and light, from 15s to 18s. Fat Cattle. —There was a very small penning of 368, and an advance in values of 20s a head was recorded for all except light sorts. Best beef made from 37s to 40s per 1001 b. The top prices were from £l6 10s to £lB 7s 6a. Good medium weights - realised from £l4 to £l6 ss; ligh tstecra down to £9 10s; besLcows and heifers, to £ll 17s 6d; good, from £9 to £lO 10s and light cows, down to £5. Fat Pigs.—Porkers were slightly easier in value and baconers firmer. Porkers brought from £1 13s 6d to £3 11s 6d (average price per lb, 6d to 6Jd), and baconers from £2 15s 6d to £4 7s 6d (average price per lb, s|d to 6Jd)_. '• V* •*. > Store was littl* ehangt in the market, except that- weaners were 2s a head cheaper. Weanera brought from 12s to 20s; slips, from 21s to 24s 6d; andst ores, from 26s to 28s.

. Railroads. Industrials. Turnover. Feb. 1 . . 28.36 123.97 690,000: , Feb. 2 . , 27.97 123.06 580,000 Jan. 31 . , 27.96 121.87 760,000 ; Jan 29. .. 27.45 120.14 430,000 ; Jan. 28 . , 27.35 120.66 1,190,000 ; Jan. 27 . . 27.87 121.57 1,210,000 ; Jan. 26 , . 28.31 123.23 1,610,000 . 540,000 - Jan. ' 25 .. . 29.34 128.33 1938. Highest . . 32.33 134.35 Lowest' . . 27.35 120.14 1937, highest . . 64.86 119.40 Lowest , 28.91 113.64 [Published by courtesy Securities Corporation (N.Z. Ltd.]

£ s. d. Commonwealth Bonds— 3} per cent., 1946 ... ... 98 16 3 4 per cent., 1938 101 18 9 Tooheys 1 12 6 Anthony Hordern 0 18 9 Broiken Hill Proprietary 3 2 6 Colonial Sugar ... 46 15 0 Dunlop Perdriau 1 3 n Goldsbrough, Mort 1 11 6 AFTERNOON SALES. Colonial Sugar 46 15 0 Associated News ... ... 1 2 n Associated News (pref.) ... 1 4 6 British Tobacco ... 2 10 3 : Tooheys 1 12 3 1 Dunlop Perdriau ... ... 1 3 9 Dunlop Perdriau (New Zealand delivery) 1 3 9 Standard Cement 0 19 3 Stedman ... 0 15 .3 General Industries ... ... Traders’ Finance ... ... 1 0 U 1 4 6 Carlton Brewery 3 7 10} Huddart, Parker ... ... 2 4 3 Newbold Brick 1 14 0 Aust. Iron and Steel (pref.) 1 7 4} Sargents ... 1 10 0 Peters ... 2 16 0 Mangrovite Belting 0 17 9 Yarra Falls ... 1 18 9 Wool worths (second pref.) 1 8 6 Victoria Nyanza 0 16 0 Millaquin Sugar ... ... ... 1 17 9 Mount Morgan ... 0 9 9 Mount Lyell ... ... ... 1 11 6 Mount Lyell (New Zealand delivery) ■ ... 1 11 3 Rawang ... 0 -9 9 Broken Hill Proprietary ... 3 3 0 North Broken Hill 2 13 7} South Broken Hill- ... ... 1 15 U

though some irregularity Gold shares are variable. continues. £ s’, d. British Tobacco 2 10 3 G. J. Coles ... 4 2 9 Dunlop Perdriau ... ... 1 3 9 Dunlop Perdriau (pref.) ... Australian Foundation In1 18 3 vestment Trust 0 6 2 ’ Electrolytic Zinc 2 8 3 Electrolytic Zinc (pref.) ... 2 10 9 Mount Morgan 0 9 10 Mount Lyell ... 1 11 6 Broken Hill Proprietary ... 3 2 0 North Broken Hill 2 13 9 South Broken Hill 1 15 3 Emperor ... 0 12 7 Loloma 0 18 2

London — £100 atg. N.Z. ... ... Buying, T.T. £124 i Selling. £124 10/ O.D. £123 10/ £124 8 19 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. 4.0477 4.0131 O.D. 4.0577 4.0171 Montreal — . Dollars to £1 N.Z. . T.T. 4,0462 4.0137 O.D. 4.0582 4.0177 Austria— Schillings to £1 N.Z. ... . .. T.T. 20.95 O.D. -- 20.96 Belgium— Belgas to £1 N.Z .T.T. 23.965 23.655 O.D. 24.040 23.666 Czechoslovakia— Crowns to £1 N.Z. ... ... . T.T. 113.71 O.D. — 115.78 Denmark— Kroner to £1 N.Z. . T.T. 18.203 17,893 O.D. 13.263 17899 France— Francs to £1 N.Z. ... ., . T.T. 124.21 121.71 ' O.D. — 121.75 Germany— Beicfamarks to £1 N.Z T.T, 9.896 O.D. 9.901 Holland — Franca to £1 N.Z. , T.T. 7.308 7.158 O.D. 7.348 7.162 Italy— Lire to £1 N.Z. ... ... , T.T. 76.28 O.D. — 76.33 JavaFrancs to £1 N.Z. i ■... .. . T.T. 7.279 7.129 O.D. 7.319 7.135 Norway— Kroner to £1 N.Z. ... ., . T.T. 16.182 15.892 O.D. . 18.242 15.898 Sweden— Kroner to £1 /, N.Z. ... .. . T.T. 15.789 ■ 15.494 P.3J. 15.849 15.500 Switzerland— Franca to £1 N.Z . T.T. 17.545 17.275 O.D. 17.660 17.280 Noumea —’ Franca to £1 N.Z . T.T. 125.46 120.48 , O.D. ■ — 120.50 Papeete— Francs to £1 N.Z ,. T.T. 125.31 120.51 O.D. — ■ 120.55 Hongkong— N.Z. pence to 1 18 53-64 dollar . T.T. 18 29-64 O.D. 18 27-64 18 53-64 India and CeylonN.Z. pence to 1 rupee ... .. ,. T.T. 22 3-8 22 21-32 O.D. 22 3-8 22 21-32 Japan— N.Z. pence to 1 yen . T.T. 17 1-8 O.D. — 17 1-2 Shanghai— N.Z. pence to 1 dollar T.T. 18 9-64 O.D. — 18 9-64 Singapore— \ N.Z. pence.to 1 i : dollar ...T.T. 34 11-16 35 11-64 ; ■: s O.D. 34 19-32 .35 11-64 Chefoo— N.Z. pence to 1 18 1-8 dollar ... ... T.T. _ O.D. ■ —. 18 7-64 Manila — N.Z. pence to 1 30 5-64 peso ... ... , T.T. 29 37-64' O.D. 29 31-64 30 5-64