Commerce, Mining, Finance

Evening Star, Issue 22891, 24 February 1938, Page 10

Commerce, Mining, Finance

Reduction of Tin Quota

N.Z. Production Statistics 1937-38 Bonus Distribution by Wool worths Ltd: London markets brightened on the removal of election fears. Many operators anticipate a spring revival. New York made a marked advance yesterday with turns over above the million mark. Railroads recorded a gain of 1.17 on the Dow Jones index, while industrials improved 2.92. Australian mining shares provided the feature of this morning’s operations on the local market, substantial advances being recorded by all issues. Commonwealth industrials also improved, but other ■ sections showed little change on late rates. Woolworths' Ltd. (Sydney) . announce a profit of £217,'717, after providing for taxation. The directors recommend a final dividend of 9 per cent, and a bonus distribution of one for five. ' The total value of production in New Zealand for the season 1937-38 has been computed by the Government Statistician at £136,100,000, the highest figure yet recorded. Although agricultural production declined 4.3 per cent, on the 1935-36 returns, pastoral production registered a phenomenal rise of 36.5 per cent., while it also rose above the previous highest level. Dairy production returned a record output and advanced 13.5 per cent., while factory production, as well as attaining a new high level, is 15.1 per cent, greater than in the previous year. The reduction of the tin quota for the second quarter of 1938 to 55 per cent, is rather more than was expected. Recent forecasts foreshadowed a reduction of 10 per cent., but that which the International Tin Committee has adopted is one of 15 per cent, to 55 per cent, of the 1929 standard tonnages. The Argo Gold Dredging Company Ltd. has declared a dividend of one penny (No. 13) on all shares.

THE SEARCH FOR GOLD

ARGO DREDGING DIVIDEND THIRTEENTH DISTRIBUTION OF ID A dividend (No. 13) of one penny a share (free of income tax) has been declared on all the shares in the Argo Gold Dredging Company Ltd., and will he payable on Monday, February 28.- _ This dividend represents a distribution to shareholders of £2,000, which makes a total of £23,200 paid in dividends since operations were commenced, £2OO being placed to the general reserve fund,, which now stands at £2,200. REPORTS AND RETURNS ARGO DREDGING For the week ended on Saturday last the return from the Argo Dredging Comapny amounted to 1450 z of gold for 131 hours’ work and 17,000 yards treated. SULPHIDE GOLD (JUNCTION REEFS) The secretary, Stock Exchange Association of New Zealand, has been advised by Sulphide Gold (Junction Reefs) Ltd., Sydney, that the following is the production report for period from December 22, 1937, to January 18, 1938; —Tons treated. 1,141; recovery. 151 fine ounces. The plant was closed down for six days during the Christmas and New Year statutory holidays, and for a further six dajs owing to shortage of water. Rain has now fallen, and adequate water supply is now in storage.

TIN QUOTA REDUCED

SECOND QUARTER OUTPUT GUT OF 15 PER CENT. 'A. cablegram from The Hague states that the International Tin Committee at its meeting on Friday reduced the quota for the second quarter of 1938 to 55 iper cent. The reduction, which reflects the weak conditions ruling in the United States, the chief consuming country, and expanding stocks, is rather more than was expected. Forecasts published last week foreshadowed a reduction of 10 per cent., but that which the committee ha* adopted is one of 15 per cent, to 55 per cent, of the 1929 standard tonnages. In December the committee fixed the quota for the first quarter of this year at 70 per cent. For the December quarter it was 110 per cent. The market price of tin was over £l9O sterling a ton early in December, but the drastic reduction of the quota failed to bring any substantial improvement, and the latest price is £lB5 2s 6d, which is £»7 4s Id a ton lower than the average price for 1937. The object of the International Tin Committee has been to establish equilibrium between production and consumption, _ but wide fluctuations have occurred in spite of changes in the quota. Control . was introduced in March, 1931. In the early part of 1932 the quota was 40 per cent., and for IS months beginning in July of that year it was down to 33.3 per cent. A gradual improvement occurred until the last quarter of 1937. since when cut* have again been made.

FINE SEASON

PRODUCTION IN 1937 38 HIGHEST YET RECORDED It has been common knowledge that New Zealand experienced a remarkably successful season in the production year 1937-38, and the latest ‘ Abstract of Statistics ’ gives interesting details, together with comparisons over the past decade. The Government Statistician explains that in the tables quoted below the valuations are made as near as possible to the point of production, so that the cost of transport to the consumer and other accretions to the value of commodities between the stages of production and final consumption are represented only in a small degree. Furthermore, production of material commodities only is taken into consideration, so that the figures do not purport to represent the total value of goods produced and services rendered during the year. The total value of production for the year 1936-37 has been computed at £136,100,000. This figure is the highest yet recorded, exceeding the previous peak in 1928-29 (£126,600,000) by £9,500,000, or by 7.5 per cent. It is £21,900,000, or 19.2 per cent, greater than the value recorded in 1935-36 (£114,200,000). Agricultural production in 1936-37 declined by £400,000. or by 4.3 per cent., ini comparison, with the year 1935-36, due chiefly to a smaller harvest of wheat and grass seed crops than was the case in the previous year. Pastoral' production registered the phenomenal rise of £12,600,000, or 36.5 per cent., while it also rose above the previous highest level (£43,100,000, in 1928-29) by £4,000,000. Exceptionally good prices were obtained for wool during 1936-37, while there was a further improvement in cattle prices. Dairy production, which comprises approximately 90 per cent, of the total shown under the heading “Dairying, poultry, and bees,”_ returned a record output for the physical volume of production, which, combjned with improved prices, resulted in this group as a whole registering an advance of £3,900,000, or 13.5 per cent.

The increased activity in the building trade accounts to a large extent for the rise of £600,000. or 20 per cent., in forestry production. Factory production i.e., value created by factory processes, as well as attaining a new high level, is £3,500,000, or 15.1 per cent., greater than in the previous year. It should be noted that the amount shown as factory production in the value of production statistics does not include the value of production in the industries processing primary products. Production in such cases is credited to the appropriate primary production group (dairying, pastoral, forestry, etc.). TEN YEARS COMPARED. The following table indicates the movements in the value and volume of production during the last ten years:—

PASTORAL’S BIG LEAD. The following table gives details of the various sections over the past four seasons:—

INTEREST RATES

The return to the investor on his outlay based upon the latest dividends, works out as follows on the latest sales. Exchange is deducted in the case of Australia and added in the case of English stocks. When Government issues are included the calculation provides for redemption at maturity:— , Per Cent. Per Annum. Northern Steamship £8 5 0 Westport Coal ... £4 (i 0 Dominion Fertiliser £4 5 1 Woolworths (Sydney) £2 2 4 Mount Lyell £lO 12 7 Broken Rill South £9 8 2 NEW YORK SHARE INDEX DOW JONES AVERAGES

LONDON STOCK MARKETS

STAGE SET FOR SPRING REVIVAL Press Association—By Telegraph—Copyright , LONDON, February 23. (Received February 24, at 11 a.m.) All sections of the Stock Exchange responded to the removal of election fears. Many operators anticipate that the stage is now set for a spring revival. ADDINGTON MARKET LARGEST ENTRY OF SEASON United Press Association.] CHRISTCHURCH, February 23. The entry at to-day’s Addington market was the largest of the season, comprising about 35,000 head, of which about 26,000 were store lambs and breeding ewes. There was an easing tendency for all classes of stock, except fat lambs, which sold at above the export schedule. Store Lambs.—About 11,000 were penned. The best pens of rape lamljs sold at from 17s to 18s 6d, and a Tew specially good to 20s. Romney cross ewe lambs sold to 24s 3d. Store Ewes.—Most of the entry were travelled and aged. Medium to good pens of two-tooths made from 30s to 325,’ best to 375. Chatham Island mixed aged ewes sold from 27s 6d .to 28s 6d, good four-year to 225, and four and five-year ewes from 17s 6d to 20s. A, large number of failing-mouth ewes sold at from 14s to 16s 6d. A pen of Chatham Island wethers sold at 27s 6d. and local half-hreds to 23s Fat Sheep.—Six thousand three hundred were penned, and there was a general easing of about Is to Is 6d, except for export ewes, which nearly maintained recent values. Best wethers made from 29s to 345, good 27s to 28s 6d, medium from 24s to 26s 6d, and light down to 20s. Best ewes made from 19s to 235, a few tons to ?Bs, medium 17s 6d to 19s, and export sorts from 14s to 16s 6d. Fat Cattle.—Five hundred and twenty were penned of mixed quality, except for a few outstanding pens. Values were down by 10s to 15a a head, the latter easing for cows. Best beef made from 33s to 36s per 1001 b, and a few tops to 37s 6d. The top price was £l9 7s 6d, good £l3 to £l4 15s, medium to good £ll 10s to £l2 15s, good cows and heifers to £l2 12s 6d, medium to good heifers £8 to £9 15s, cowls £7 to £8 15s. and inferior and ordinary from £5 to £6 10s. Fat Pigs.—A small porker entry improved by 2s to 3s a head, making from 6Jd to 6|d per lb. Raconers sold at a slight firming, per lb values being from 6d to 6]d. COLOMBO TEA SALE Mr L. M. Wright has received the following cabled report on the Colombo tea auction of February 22: At yesterday’s sale of two million pounds fine quality teas were in keen demand and remained firm. Medium and common grades closed about |d under last week’s rates._ At next week’s auction one and" three-quarter million pounds will be offered for sale. CANADA’S MINERAL WEALTH RECORD PRODUCTION IN 1937 Production by Canadian mines in 1937 is estimated to have reached an aggregate value of 452,054,000 dollars, an increase of 25 per cent, compared with the 1936 total. Gains are reported in all groups, but the greatest increase ! s in the metals division, output being valuqd at 333,088,000, a gain of 28 per cent. There was a record production of gold, copper, lead, zinc, nickel, platinum metals, selenium, tellurium, crude petroleum, asbestos, sulphur, nephelin-syenite, and salt.

Value of Mean Production. population. Total Per year ended. £ Head Year June 30. (millions) £ 1927-28 ’ ... 1.447.657 120.1 83.0 1928-2.1 ... 1,464,592 126.6 86.4 1029-30 ... 1.482.805 120.9 81.5 1030-31 ... 1.504.022 97.6 04.9 1031-32 ... 1,521.228 83.6 55.0 1032-33 ... 1,533.252 83.8 54.7 1933-34 ... 1,545,628 98.8 63.9 1934-35 ... 1,556,023 97.0 62.3 1935-30 ... 1.568.434 114.2 72.8 1936-37 ... 1.582.243 136.1 8G.0

11)33. 10351036* 34. 35. 36. 37. Agricultut 8.7 7.9 9.2 8.8 Pastoral 32.1 28.3 34.5 47.1 Mryintf. poultry and bees 22.3 23.0 28.8 32.7 Mining 3.6C, 3.8 4.0 4.3 Fisheries 0.4 0.4 0.4 0.5 Forestry 2.0 2.0 3.0 3.6 Factory 18.6 20.7 23.3 26.7 Building and miscellaneous 10.3 10.3 11.1 12.4 Total 08.8 97.0 114.2 136.1

P? O P Industrials. Turnover. Feb. 23 ... 30.52 132.41 1,300,000 Feb. 21 ... 29.35 129.49 760,000 Feb. 19 ... 28.76 127.50 290,000 Feb. 18 ... -28.66 126.29 770,000 Feb, 17 ... 29.30 127.59 860,000 Feb. 16 ... 28.71 124.90 470,000 Feb. 15 ... 29.04 124.93 520,000 Feb. 14 ... 29.16 125.97 400,000 Feb. 11 ... 28.96 124.94 390,000 Feb. 10 ... 29.11 125.54 630,000 Feb. 9 ... 28.13 125.00 750,000 Feb. 8 ... 27.86 125.52 770,000 1938. Highest ... 32.33 134.35 Lowest ... 27.08 118,49 1937. Highest ... 64.86 194.40 Lowest ... 28.91 113.64