Commerce, Mining, Finance

Evening Star, Issue 22952, 9 May 1938, Page 8

Commerce, Mining, Finance

Accounts of Burns, Philp

MONEY AND MARKETS ONLY GOLD SHARES SHOW LIFE INDUSTRIAL NEWS DISTURBING WOOL OUTLOOK UNCERTAIN Press Association —By Telegraph —Copyright : LONDON, May 7. . The disappointing reception given the Australian loan slightly depressed the gilt-edged market as a _ whole. Elsewhere there is little life with the exception of gold shares. Most city ' business men consider that the outldok for gold shares is excellent, as they ■ believe that inflationary devejopments arising from the vast expenditures 'of England and America will be expressed in .the orthodox way of writing up the , price of gold. _ _ . The industrial news is increasingly disturbing. Rail traffic- receipts are becoming steadily poorer, coal’exports are the lowest for a year, and the cotton trade is so idle that orders are fast becoming exceptional. . The production of iron and steel remains at a high level, but the volume of new orders is slackening/ - Leading industrialists. however, continue to pro- , fess optimism. WOOL. It is difficult to estimate the probable demand at the wool sales. The Home trade is not-in urgent need of Taw material, and the French demand is'problematical, as buyers may decide to postpone their purchases until the franc shows some recovery. Wool may be dear, and at the present exchange rate it, would not be ~ surprising to see a fair German demand. Russia, which bought well at the last series,_ and helped so much to steady the prices, is probably fairly ■well covered. The market would not h« surprised if Russia did not operate at this series. TIN. Tin has provided the feature of) . the market for base metals, jumping sharply on the favourable outlook for the buffer pool scheme. BUTTER. Butter prices fluctuated awkwardly during the week. The demand has quietened, but prices should be maintained around the present figure, in view of the low New Zealand gradings and the reduction of Australian shipments. Every movement of the market, however, is watched with con- ' siderable nervousness. Speculators are " almost entirely absent. APPLES. ’ The demand for apples remains steady, with firm prices. FROZEN MEAT. < In the frozen lamb ‘trade values are • fully a half-penny per lb higher than ' a year ago. Stocks are lower and consumption higher. The trade sees no reason for a break for some weeks, though home-killed lamb will become i»ore plentiful at the end of the month. The settlement of .the Irish question is also expected to affect prices later. . . In contrast to lamb, beef is declining owing to heavy shipments from i the dominions. Prices are sometimes ' 1 unremnnerative to shippers. STABILITY OF GOLD WISE CONTROL POLICY CONFIDENCE IN FUTURE The stability of the price of gold and confidence in the future were two leading points in the address of Dr Anderson, president of the Transvaal Chamber of Mines, at the annual meeting in Johannesburg a few weeks ago. In the past two years, he said, due in no. small measure to the_ wise policy of control of the authorities, the extreme variation between the highest ' and lowest price was not more than about 4 per cent. The steadiness of gold in spite of all the disturbing political and financial difficulties in the world was proof of a continuing basis of stability in an otherwise unstable economic world. The fact that the annual world production of gold was only about 5 per , , cent, of stocks, and that gold had rei cently been bought for hoarding at a premium of nearly 2s above the exchange parity, was the answer to suggestions of the prospect of over-pro-duction, or that the world! wouldi if it could, do without gold.

London Markets Dull

Despite a four-point gain in New York late last week, the local market opened quietly this morning. Business was at a standstill, not one transaction being recorded. Some Australian mining leaders showed signs of recovery, but other sections remained quietly steady.

With the exception of gold shares, the outlook for which is considered excellent, the London market displayed little life last week. Industrial news is increasingly disturbing, but industrialists continue to profess optimism.

Net profit of £240,574, compared with £226,067 the previous year, is reported, by Burns, Philp, and Co. Ltd. Dividend has been maintained at 10 per cent. The directors state that the merchandise-section of the business was further expanded, resulting in a substantial increase in the volume of remunerative sales.

« AUSTRALIAN INDUSTRY REMARKADLE DEVELOPMENT MANY NEW SCHEMES In a summary dealing with the extraordinary development- in Australian secondary industries within the past three years, the Minister in Charge of Trade and Customs, Hon. T. W. White, announced that the additional capital investment involved in some of the projects amounted to £14,610,000. Broken Hill Proprietary has led the way, its most recent step being the establishment of a .blast furnace at Whyalla (South Australia), close to the enormous iron deposits there. Imperial chemical Industries (Australia) is erecting factories at Deer Park and Yarraville. The new alkali plant at Port Adelaide, involving a capital of £1.000,000. is also one of its activities. Other new industries established within the last year, not referred to by Mr White, are the Shale Oil Scheme at Newnes (New South Wales), with a capital of more than £600,000, and the ham-canning factory at Sydney, which started in May and now cans: about 2.000 hams a week. In July the Minister stated in Parliament that, as the result of the Government’s trade diversion policy, introduced a year ago, new capital of £3,032.000 had been or would be invested in Australian secondary industries. , . Authority to increase borrowing powers of the State Electricity Commission up to £10,500.000 for the Kieawa Valley hydro-electric undertaking, and another generating station at Newport will he sought im the State Electricity Commission. Bill to be introduced in the Legislative Assembly soon. The Bill is complementary to the State Electricity Commission (Extension of Undertaking) Bill, which has already been explained to Parliament. and' confers authority on the commission to proceed with the 14,-ycar task of harnessing the Kieawa River. OIL FROM SHALE LARGE AUSTRALIAN SCHEME J Substantial progress has been made in the preparation of plans to develop the Newnes shale oil-field. New South Wales. The immediate objective is the production of 10,000,000 gallons of petrol a year, but eventually a much greater output may be achieved. This information was given by the Commonwealth Minister of Development, Mr Casey, to Mr J. N. Lawson, member for Macquarie. Mr Casey said ho was maintaining close touch with’ the National Oil Pty. Ltd., the company formed by Mr G. F. Davis to develop the field. “It is understood, Mr Casey said, “ that the company has decided to purchase the Dubbs (U.S.A.) system of cracking plant. Plans are being prepared for a unit capable of dealing with 1,600 barrels of shale oil a day. and when these plans are available tenders will be invited for the construction of the plant in Australia, England, and the United States.” FOREIGN EXCHANGES (British Official Wireless.) Fret* - Association—By Telegraph—Copyright BUGBY, May 7. The following are the mean closing

rates: — * . Paris, franc to £1 '. 177 29-32 New York, dollar to £1 4.98* Montreal, dollar to £1 ... ... Brussels, belgas to £1 ... 29.611 Geneva, franca to £1 21.76} Amsterdam, florins to £1 8.96§ Milan, lire to £1 94} Berlin, Reichmarken to £1 ... 12.39* Stockholm, kroner to £1 ... ... 19.40 Copenhagen, kroner to £1 22.40 Oslo, kroner to £1 ... ... ... ... 19.90 Vienna schillings to £1 26* Prague, crowns to £1 143* Helsingfors, marks to £1 ... ... 226* Madrid, pesetas to £1 nominal Lisbon, escudo to £1 102 3-16 Athens, drachmaas to £1 ... ... 547* Bucharest, lei to £1 ••• 677* Belgrade, dinars to £1 ... ... 217 Warsaw, roubles to £1 ... ... 26.43 # Eio de Janeiro, pence to milreis 2 13-16 Buenos Aires, pence to dollar ... 19.02* Montevideo, pence to dollar ... 19} Bombay, pence to rupee ... ... 17 29-32 Hongkong, pence to dollar 14 15-16 Shanghai, pence to dollar ... ... 12 Vobobama, pence to yen 14 Batavia, florins to £1 8.97 •Sellers.

TREASURY BILL TENDERS (British Official Wireless.) Press Association—By Telegraph—Copyright RUGBY, May 6. The total amount applied for in tenders for £45,000,000 of Treasury bills .was £87,830,000 The average rata per cent, for bills at three months was' 10s O.C9d, against 10s 1.99 d a week ago.

NEW YORK SHARE INDEX DOW JONES AVERAGES

MINING NEWS NEW SOUTH WALES GOLD YIELD ' QUARTER'S INCREASE 18.6 PER GENT. Higher production during March has enabled the New South Wales gold yield for the first three months of the year to show a substantial increase compared with the corresponding period of 1937. According to the Mines Department return, production for the quarter was 18,3560 z fine, valued at £159,092, compared with 15,4740 z fine, Valued at £136,726 for the first quarter of last year, equal to an increase of 18.6 per cent. The March production was 8,1730 z fine, valued at £70,979, compared with 6,1910 z fine, valued at £54,838 for March, 1937. CUTHBERT’S MISIMA NET PROFIT OF £31,783 On operations for the year to December 31 last. Cuthbert’s Misima Gold Mining Ltd., Eastern Papua, reports a net profit of £31,783, compared with £27,634 for the previous period of 14* months. The 1937 result has been struck after providing £3,388 for cost of development, writing off £4ll on old plant, and £1,400 proportion of flotation expenses, and placing £2,000 tov special reserve. Four dividends, each of 6d a share, were paid during the past year, equal to 20 per cent, of the nominal value of the, shares, the distribution involving £30,000. A total of 26,119 tons of ore was treated for 7,4070 z gold, and 21,3870 z silver, net cost being 22s 1.5 d a ton, against 22s Lid in the previous period. Costs were affected by interruptions due to construction operations, higher cost of raw materials, and! higher trucking costs. REPORTS AND RETURNS BLACKWATER MINES The manager of the Blackwater Mines Ltd. reports as follows for April:—; Crushed 2,780 tons, yielding 1,189 fine ounces of gold from all sources, the value of which (taking gold at £6 19s 6d a fine ounce) was £8,294. Working expenses were £6,030, leaving a working profit of £2,264. Capital expenditure was £3,4434, and development £653. The low tonnage was due to Easter holidays, Anzac Day, and flood damage. BIG RIVER The manager of the Big River Gold Mines Ltd. reports as follows for the week ended March s: No. 5 Level.—North stope: Sloping proceeding on stone sin wide._ South stope: Pass recovered and sloping commenced. Centre stope; Sloping on stone 2ft 6in wide and 14ft long 20ft above No. 4 level. North drive: Advanced 6ft. Fault line carrying stone Bin wide. The winze was sunk 4ft to a total depth of 66ft. The shaft was completed 7ft, making a total , depth ot 120 ft. A total of 35 tons of stone was sent to the battery. SYDNEY STOCK EXCHANGE Press Association—By Telegraph—Copyright SYDNEY, May 7. £ s. d.

COTTON, RUBBER, ETC. Press Association—By Telegraph-Copyright LONDON, May 7. Yesterday’s closing prices were: — Cotton: Spot, 4.69 d per lb; June delivery, 4.57 d. Rubber: Para, s|d per lb; plantation smoked. Sid* Jute: May-June shipment, £l7 11s 3d a ton. Copra: May-June shipment, South Sea, £lO 17s 6d a ton; smoked, £lO 17s 6d; plantation Rabaul, £ll 17s 6d, Linseed oil, £27 a ton. Turpentine, 31s 9d per cwt.

COMPANY NEWS BURNS, PHILP PROFIT AGAIN HIGHER FURTHER EXPANSION RECORDED The net profit reported by Burns, Philp and Co, Ltd. show another substantial increase. For the year ended March 31 it was £240,574, after writing off £128,228 for depreciation, compared with £226,067 the pre-vious-year, when £103,091 was written off for depreciation. Gross profit increased by £145,973 to £1,111,950. The dividend is maintained at 10 per cent, per annum (including 3d a share on the contributing issue), and requires £156,250 for the year. It is proposed to transfer £75,000 to reserve, ranking it £1,200,000, . and £IO,OOO as a first contribution to a staff retirement fund. This will leave £31,459 to be carried forward, against £32,135 brought forward. The directors state that the merchandise section of the _ business was further expanded, resulting in a substantial increase in the volume of remunerative sales. Earnings from shipping were well maintained. During most of the year the copra market was satisfactory. The markets for copra overseas became depressed towards the close of the year, but the directors consider that the prospect of early improvement is hopeful. The motor passenger and cargo vessel for the Papua and Mandated Territory service is expected to be launched in June, and to be in commission about November. The two small motor vessels for the island trade ordered last year have been delivered and one is in commission, DOMINION FERTILISER The Dominion Fertiliser Company Ltd. advises that the share register and transfer books of the company will be closed from May 23 to June 7 (inclusive). FOREIGN EXCHANGES ON HEW 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): — Buying, Selling. London —

DOLLAR RATES. Tho 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) ... 3.99 3-8 4.01 11-16 O.D. (dol) ... 3.99 3-4 4.02 1-16 BUYING— O.D. (dol) ... -4.03 11-16 4.06 1-16 LONDON WOOL SALES Murray, Roberts, and Co.-Ltd. have received the following cablegram from their London agents, dated May 6:— The Matakana, Waiwcra, Akaroa, and Dunedin Star have arrived in time for the consignments of wool by them to be offered in the next series.

Railroads. Industrials. Turnover. ... 22.64 117.21 560,000 May 6' ... 22.90 117.16 1,020,000 ... 21.57 113.46 690,000 May 4 ... 21.51 113.88 550,000 May 3 ... 21.45 112.70 470,000 May 2 ... 20.95 110.09 350,000 Apl; 28 ... 21.21 111.98 540,000 Apl. 27 ... 27.73 115.25 420,000 Apl. 26 ... 21.83 113.94 440,000 Apl. 25 ... 22.09 116.23 400,000 Apl. 21 ... 21.33 115.40 600,000 Apl. 20 ... 21.26 114.90 780,000 Apl. 12 ... 22.40 113.88 600,000 Apl. 11 ... 23.48 112.93 1,000,000 Apl. 9 ... 22.75 115.32 1,410,000 Apl. 8 ... 21.7 109.57 830,000 Apl. 7 ... 20.80 105.43 330,000 Apl. 6 ... 20.80 108.29 480,000 Apl. 5 ... 21.45 108.36 690,000 Apl. 4 ... 21.24 105.58 690,000 Apl. 2 ... 20.46 106.11 600,000 Apl. 1 ... 19.81 . 103.02 860,000 1938. Highest ... 32.33 134.35 Lowest ... 19.00 98.85 1937 Highest ... 64.86 194.40 Lowest „ ... 28.01 113.64

Commonwealth Bonds — 4 p.c., 1938 101 18 9 4 p.c., 1941 ... 102 17 6 4 p.c., 1947 Bank of New South Wales 102 18 9 32 7 6 Toohey’s 1 12 0 Tooth’s 2 16 9 Austral Gas A 7 9 0 Anthony Hordern (pref.) 17 3 6 Burns, Philp Farmer’s 2 13 6 1 12 6 General Industries 0 19 3

£100 stg. N.Z. .. T.T. £124 £124 10/ O.D. £123 10/ £124 8/9 Australia— £A to £100 £100 10/ N.Z. .. T.T. £101 Fiji— £P to £100 £90 7/6 £89 N.Z. ... T.T. New York— £1 3.9930 N.Z. T.T. ' 4.0276 O.D. 4.0376 3.9970 Montreal — £1 • 4.0170 N.Z. T.T. 4.0455 O.D. 4,0615 . 4.0210 Belgium— £1 Beiges to N.Z. T.T. 24.007 23.697 O.D. 24.082 23.708 Czechoslovak! a— N.Z. . T.T. 114.38 O.D. — 114.43 Denmark — Kroner to £1 N.Z. T.T. 18.203 17.893 O.D. 18.263 17.899 Finland— Marks to £1 179.15 N.Z. . T.T. 184.95 O.D, 185.35 179.2Prance — Francs to £1 N.Z. T.8. 141.00 O.D. — 141.04 Germany— Reichmarks to £1 N.Z. T.T. — 9.886 O.D. — 9.891 Greece — Drachmae to £1 N.Z. . T.T, — 429.54 O.D. — 429.84 Holland— . Florins to £1 N.Z, T.T. 7.305 7.155 O.D. 7.345 7.159 Italy— Lire to £1 N.Z. .. T.T. — 75.95 O.D. — 76.00 Java— Florins to £1 N.Z. •T.T. 7.287 7.137 O.D. 7.327 7.141 Norway— £1 Kroner to N.Z. T.T. 16.182 15.892 O.D. 16.242 15.898 Noumea— Francs to £1 N.Z. T.T. — 139.75 O.D. ■ 139.79 Papeete— Francs to £1 N.Z. T.T. O.D. 139.80 139.84 Sweden — Kroner to £1 N.Z. . T.T. 15.788 15.493 O.D. 15.8£8 15.499 SwitzerlandFrancs to £1 N.Z. . T.T. 17.671 17.401 O.D. 17.776 17.406 Hongkong— N.Z, pence to 1 dollar . T.T. 18 19-64 18 43-64 O.D. 18 17-64 18 43-64 India and Ceylon— N.Z. pence to 1 rupee ... , . T.T. 22 7-64 22 25-64 O.D. 22 5-64 22 25-64 Japan— N.Z. ponce to 1 T.T. yen 17 1-2 O.D. ■ 17 1-2 Manila— N.Z. pence to 1 peso . T.T. 29 35-64 30 3-64 O.D. 29 29-64 30 3-64 Singapore— N.Z. pence to 1 dollar ... . . T.T. 34 19-64 34 25-32 i O.D. 34 13-64 34 25-32