Commerce, Mining, Finance

Evening Star, Issue 22974, 3 June 1938, Page 6

Commerce, Mining, Finance

WOOL PROSPECTS INFLUENCE OF AMERICA IMPROVEMENT EXPECTED GERMANY'S LARGER PURCHASES The wool market Has shown very small variation since January. Changes hare been too limited to disturb the confidence of consumers in raw material costs. According to the latest report of Winchcombe, Carson Limited, Australia, woolbrokers, any appreciable improvement in the price of wool depends largely on developments in the United States. “ A brightening in business In that country should have favourable results on the value of most commodities,” the report states. “ The sheep’s staple would benefit directly and indirectly fay that alteration. Mail advices show that in late April better indications existed for a much-needed increase in turnover at the American mills. The establishments had previously only been running at 30 per cent, of capacity. Authorities expected that during July and August manufacturing would be proceeding at a more normal rate, as the Government spending policy gets under way. “ Stocks of shorn wool in all hands, except growers, at the close of March were 166,631,0001 b, greasy basis, comparedl with 165,154,0001 b a year before, but a larger (proportion of .the current season’s wool is still unsold than in 1937. The total quantities on hand are not considered to be unduly heavy if sales of fabrics show even reasonable revival. "Germany, has been the surprise of this season,” states the report.' “ The lower cost of the raw material this season compared with prices a year ago has certainly permitted her to obtain Earner quantities with the funds she has av..ilable. She has, however, expanded her, purchases considerably not only in Australia, but also in New Zealand, South Africa, Argentina, and Uruguay. “ From July to the end of February last Germany’s imports of wool from all sources were 20 per cent, more than during the corresponding period of the preceding season, and her buying since that time has been decidedly greater than during the similar months of 1937. Stocks of wool in German hands had reached a very low level, and the textile industry has been active. The increased purchasing of raw material has been most opportune, owing to the smaller quantities taken hy Japan and America.’!

IRON AND STEEL INDUSTRY STATE WORKS TO BE AT ONEKAKA MOST ECONOMICAL SITE {Feb United Press Association.] WELLINGTON, June 2. The Minister of Industries and Commerce (Hon D. G. Sullivan) to-day stated that the Government, after considering the evidence and numerous representations, and in particular the views of overseas experts, had decided that the most economical site for the establishment of iron and steel works was at Onehaka. He added that he had requested the Minister of Public Works (Mr R. Semple) to take the necessary steps under the Public Works Act to notify the affected persons that the Government had decided to acquire certain lands at Onekaka for the purpose of carrying out the provisions of the Iron and Steel Industry Act, 1937. A notice to this effect appears in today’s Gazette. SYDNEY WOOL SALES Press Association —By Telegraph—Copyright SYDNEY, June 2. Competition was fairly general for well-grown fleece and skirtings at the wool sales to-day. Continental, Yorkshire, and Japanese buyers were the principal operators. The market was without change, compared with last week. Greasy merino realised to 18d per lb. The offering consisted of 8,756 bales, of which 6,480 were sold and also 1,130 privately. QUARTZ MOUNTAIN (PAPUA) The chairman of directors (Mr J. W. Thomson) of Quartz Mountain (Papua) Ltd. reports from Sydney that the recently-appointed engineer-mana-ger (Mr Donaldson) has taken charge at Misima, and has commenced investigations preparatory to carrying out the new development policy. Necessary white, labour has been engaged, and miners left by the Macdhui on June 1 to complete present requirements. By the same vessel Mr D. F. Scott, M.A.T.M.M. (who is the company’s consulting metallurgist and managing director of Quartz Investments Ltd.), also left Sydney on a visit to Misima.

Steady Prices for Wool Wilsons Cement's Accounts Except for a slight but nevertheless welcome recovery in Australian mining issues, there was little life in the local investment market this morning. Movements in practically every section were restricted, while business was poor. Wilsons (N.Z.) Portland Cement Ltd. reports a decrease of £4,447 in the net profit, net earnings of £55,442 comparing with £69,889 in the previous period. The dividend’ equals 7£ per cent. Very small variation has been shown by the wool market. Slight upward and downward fluctuations have been experienced, but changes have been too limited to disturb the confidence of consumers in raw material costs. An appreciable improvement in the price largely, depends on the United States, states Winohcombe/Carson, Ltd., where a brightening in business would be reflected favourably in most commodities.

BANKING POLICY POSITION IN AUSTRALIA LENDING FUNDS LOWED GREATER CAUTION NEEDED That the present economic situation is, somewhat less comfortable than a year ago was the view expressed by the chairman of directors of the National Bank of Australasia Limited, Sir James Elder, at the annual meeting of shareholders in Melbourne. The margin of funds available for lending had been, narrowed, while the cash position had ' shown an adverse trend, Sir James stated. Because of these movements, a more cautious lending policy might be _ expected. This might be prolonged if imports maintained their uncomfortably high level without an upward movement in export values. Referring to the report of ‘the Royal Commission on the monetary and banking systems in Australia, Sir James said that the less legislative control of banking there was in Australia the better would the national interests be served. The present powers of the Commonwealth ißank were ample for all reasonable purposes, and any additions to them could only be effected by means of irksome legislative restrictions on the trading banks. It would be the height of folly to attempt to increase the powers of the central institution at the expense of the trading bank system. No central institution, however powerful, could give to Australia the service given by its trading banks. “ The road for us to travel,” Sir James added, "is co-operation between the principal parties concerned—the Governments, the Commonwealth Bank, and the trading banks. We must hold the Australian banking system fast to its British moorings, and oppose any attempt that may be made to attach it to the framework of a typo which has proved so unavailing in America and elsewhere.”

FRUIT AND PRODUCE ORANGE PRICES LOW RIPE BANANAS IN SHORT SUPPLY Reilly’s advise that business in the fruit and produce market has been fairly quiet during the week. Heavy supplies continue to arrive, but only for first grade lines of apples is there any inquiry. The principal varieties coming to hand are Delicious, Jonathans, Winesaps, and Cleopatras. Winter Nelis pears nave also been in good supply, and values are lower. Large consignments of cut flowers are being received. Smaller consignments of hothouse tomatoes are coming to hand. A small shipment of California oranges arrived during the week, while South Australian navel oranges are due by the Waitaki on Wednesday, and there is also a small shipment of Island oranges at the same time. This fruit is from Mangaia, and should be of good quality. Prices for oranges this year, are much below those of previous seasons. Ripe bananas are in very short supply, and the market is bare of supplies until the arrival of Samoans ex the Maui Pomare, due at Lyttelton on Monday. Large supplies of marmalade oranges came to hand during the week. Shipments of jam melons are in excess of requirements, and prices are lower. There has been a good demand for fresh vegetables, and both cabbages and cauliflowers are short of the demand. Heavy supplies of marrows and pumpkins are available. Increased consignments of potatoes have been coming to hand, and King Edwards are meeting with a fair demand. Supplies of Canterbury onions are also in heavier supply. Further consignments of very fine quality mutton birds are being received. Egg values remain at 2s a dozen for guaranteed. Values for poultry at Wednesday’s sale were satisfactory.

DOLLAR AND FRANC Press Association—By Telegraph—Copyright LONDON, June 2. . (Received June 3, at 11 a.m.) The dollar is quoted at 4.94 f. The franc is quoted at 178 i. PRICE OF GOLD Press Association—By Telegraph—Copyright LONDON, June 2. (Received June 3, at 11 a.m.) Fine gold is quoted at £7 0s Bd.

NEW YORK SHARE INDEX DOW JONES AVERAGE

BRIGHTER METALS MARKET TIN RISES SHARPLY STANDARD COPPER UNCHANGED Press Association—By Telegraph—Copyright LONDON, 'june 2/ (Received June 3, at 1 p.m.) Following are, to-day’s .quotations on the .London metal market, compared with those of Juno 1:

RAILWAY WORKING ACCOUNT FOUR-WEEKLY PERIOD [Pee United Press Association.] WELLINGTON, June 2. The Railway Working Account for the four-weekly period ended April 30, 1938, is as follows:

The total revenue from April 1 to April 30, 1938, was £757,047, the total expenditure was £658,244, and the net revenue was £98,803. The totals for the corresponding period last year were:—Revenue £771,977, expenditure £638,252, net revenue £133,725.

MINING NEWS REPORTS AND RETURNS LOLOMA AND EMPEROR HIGHEST YIELDS YET. Returns of the Emperor Gold Mining Company Ltd. and Loloma Gold Mines N.L., Fiji, for the latest four-weekly production period show that both companies exceeded their previous highest quantity of ore treated and recovered their highest gold yield to date. With a designed plant capacity of 3,000 tons a week. Emperor, in the four weeks ended May 19, treated 13,070 tons. The largest quantity treated in any previous corresponding period was 12,113 tons. This increase in tonnage treated more than compensated for a drop in head value, and the gold yield, 3,9320 z, compares with the highest yield of 3.812i0z. The quantity treated at the Loloma mine in the four weeks ended May 18, 2,050 tons, is slightly in excess or the previous highest figure of 2,020 tons, and the yield, 2,6910 z, also is ahead ;of the previous record of 2,6560 z. MOSSY GREEK The Mossy Creek dredge return for the month is 270 z 13dwt from 9,334' yards for 132 hours’ dredging. TIN SUPPLIES Press Association—By Telegraph—Copyright LONDON, June 2 (Received June 3, at 10 a.m.) World visible supplies, 18,059 tons; Straits carryover, 5,600: supplies, 7,997; deliveries, 8,979.

COMPANY NEWS WILSONS (N.Z.) CEMENT DEGREASE IN NET PROFIT NET EARNINGS AMOUNT TO £55,442 Although the dividend remains unchanged Wilsons (N.Z.) Portland Cement Ltd. reports a decrease of £4,447. in the net profit for tile year ended March 31. 'Not earnings amounted to .£55,442, against £59,889 in. the previous year. The net profit, after making full provision for depreciation and taxes, amounts to £55,442, while the balance brought forward from last year totals £27,241. Deducting the amount paid as an interim dividend last December, there is left a balance of £60,183 to be dealt with. From this the directors recommend the payment of a dividend of 4sd a share (making 9d for the year), which will leave to carry forward the sum of £37,683. The year’s dividend is equal to 7i per cent., compared with 15 per cent, for 1937. The dividend requires the same amount as last year, however, owing to the distribution of 600,000 shares 'of 10s each. The interim dividend absorbed £22,500, with a similar amount set aside for a final distribution. OEVONPORT FERRY UNCHANGED DIVIDEND [Per United Press Association. I AUCKLAND, June 2. The Devonport Ferry Company will pay a final dividend of 2$ per cent., making 5 per cent, for the year. The distribution is at an unchanged rate. N.Z. FORESTS PRODUCTS A meeting of Victorian first-issue bondholders in New Zealand Forests Products Ltd. was held in Melbourne last; week. A motion was carried requesting the Commonwealth Government to continue its efforts to induce the New Zealand Government to vary the mission order, which incorporates bond-’ holders into-shareholders of New Zealand Forests Products Ltd., as at December. 18, 1925. Such action, the resolution stated, would entitle first-issue bondholders to enforce against the bond-issuing company the right.to require repurchase of bonds in terms of the original contract.

TINPLATE PRODUCTION DECLINE IN BRITISH OUTPUT A surprising decline has occurred in British steel production. There was a sharp fall m April. Demand for structural steel continues to .be good',, but there has been a substantial falling off in orders from tinplate makers, who are working at only naif their capacity because of a large increase in stocks. Apparently there was much overstocking by users of tinplate last year in case of a shortage which did not materialise. Consequently British exports to Continental countries in January and February were only a third of the shipments in the first two months of 1937. But for an increase from 26,500 tons to 43,400 tons in exports to Empire countries, the position of the British tinplate industry would be much worse. The inauguration of tinplate manufacture in Belgium does not help the position. Besides affecting makers of steel, the slackness in the tinplate industry also helps to depress the market for tin, of which there is about a ton and a-half in 100 tons of tinplate. AUSTRALIAN STOCK EXCHANGES Press Association —By Telegraph—Copyright SYDNEY, June 2. The good recovery of New York share prices imparted a better tone to industrials on the local Stock Exchange to-day. Most of the price movements were toward higher levels £ a. d.

MELBOURNE, June 2. Industrials and Barriers were firmer to-day, but trading is still quiet. There is a better undertone in selected gold stocks. Sales: —

Railroads. Industrials . Turnover, •Juno 2 ... 20.52 110.68 480,000! June i ... 20.60 110.61 530,000 May 31 ... 20.31 107.74 400,000; May 28 ... 20.58 108.90 220,000 May' 27 ... 20.26 107.98 760,000 May 26 ... ,20.35 108.28 780,000 May 25 ... 20.98 110.60 ' 560,000 May .24 .. ... 21.43 112.35. 420,000 May 23 „. 21.81 113.97 330,000 M ay 21 ... 21.73 ' 113.25 290,000 May 20 ... 21.90 114.99 440,000 May 19 ... 22.26 115.28 490,000 May 18 ... 22.54 117.02 400,000 May 17 ... 22.54 116.36 410,000 May 16 ... 22.57 115.38 400,000 May 14 ... 22.98 117.21 230,000 May 15 ... 23.15 116.87 600,000 May 12 ... 23.48 118.35 600,000 May 11 ... 23.48 118.52 980,000 May 10 ... 23.19 117.93 1,040,000 1938. Highest ... 32.33 134.35 Lowest ... 19.00 98.95 1937, Highest ... 64.88 194.40 Lowest ■ ... 28.01 113.64

. June 1. 1 June 2. CopperStandard, ! Forward 'Electrolytic Forward , Wire bars spot , spot £; s. d. 32 19 4i .33 4 4i 37 5 0 , 38 0 0 38 0, 0 £ s. d. 33 19 4-| 34 3 9 37 15 0 38 15 0 38 15 0 Lead — Spot Forward 13 13 6 10i 9 4* 13 11 3 1314 4i SpelterSpot Forward ::: 11 18 9 12. 3 li 12 6 lOi 12 10 % TinSpot Forward ... ... 163 2 6 163 17 6 167 17, 6 168 7 6 Silver — ■ Fine, per Standard, ; oz ... per oz 18 15-16d' 20 7-16d 18 15-16d 20 7-16d

Res, Net Sec. Expend. Rev. £ £ £ 850 732 *382 Gisborne ... ... 2,336 -2,517 *181 North Island main line and branches ... ... ... 398,489 349,243 49,246 Soutl. 1 Island main line and branches ... ... ... 247,124 .229,722 17,402 Westport ... ... «„ 8.181 6,280 1,901 ... 1,260 1,817 *551 Picton ... ... ... «•• 2,834 3,493 *659 Total railway operation £660,380 £593,804 £66,776 Miscellaneous services ... 36,476 64,440 82,027 Total £757,047 £658,244 £98,803 •Loss.

Commercial Banking of Sydney , 1 0 11 E.S. and A. Bank ... ... 4 17 0 Colonial Sugar ... ... ... 47 15 0 Associated News 1 0 7-J Associated News (pref.) ... 1 3 U Howard Smith ... 1 1 4 British Tobacco (New Zealand delivery) Tooth’s 2 8 6 2 15 9 Australian Glass ... 4 13 3 Dunlop Perdriau 1 1 0 Anthony Hordern 0 17 9 Anthony Hordern (pref.) 1 2 6 General Industries 0 18 8 ICandos ... 1 6 li Paul and Gray ... 1 1 6 J. Fielding 4 5 0 Standard Cement ... ... 1 0 8 Perpetual Trustees Taubmans (ex div.) 4 14 0 2 17 6 Woolworths 1 1 4§ Newbold Brick 1 11 9 Wilcox, Mofflin 0 6 11 Millaquin Sugar ■ 1 17 9 Broken Hill Proprietary ... 3 1 0 North Broken Hill 2 0 0 Rawang ... 0 8 4 Emperor 0 12 2

£ s. d Commercial Bank of Australia 0 15 9 Australian Paper Manufacturers (pref.) 1 4 9 British Tobacco 2 8 6 G. J. Coles 4 2 8 Australian Glass 4 13 0 Dunlop Perdriau ... ... 1 1 0 Goldsbrough 1 9 6 Yarra Falls 1 18 6 Mount Morgan ... 0 8 11 Mount Lyell 1 3 0 Broken Hill Proprietary ... 3 0 9 North Broken Hill 2 0 5 South Broken Hill 1 8 8 Zinc Corporation 3 16 0 Emperor 0 12 3 Loloma 1 1 6