Commerce, Mining, Finance

Evening Star, Issue 22988, 20 June 1938, Page 6

Commerce, Mining, Finance

London Markets Reviewed More Cheerful Undertone Record N.Z. Average Bank Advances Although London markets dosed cheerful, business is still negligible. The remarkable response to the Defence Loan reveals that the weight of money'seeking investment is so heavy that it requires only an atmosphere of reasonable (confidence to ensure success for borrowing purposes and industrial expansion and construction, states the week-end commercial cable. Despite another slight advance in the Dow Jones index, transtasman issues eased again this.morning, although losses were generally restricted. Buying support fell away and business was poor. Goldsbrough, Mort, and Company Ltd. report a net profit of £191,342 for the year ended March 31, against . £206,009 in 1937. • The ‘ Economist’s ’ analysis of the results of 79 companies shows an increase of 12 per cent, compared with last year. , Average bank advances in New Zealand in April reached the record level of £55,947,797, according to the May Abstract of Statistics. Although the trend has been downward since the peak figure of £50,214,283 recorded on April 4, the level on May 16 was still £55,170,781, an abnormally high figure. The volume of overseas trade was 38.3 per cent, below the, March total and 45.9 per cent, below the total for April last v year, which was unusually large. Imports were 2.6 per cent, higher .than in April last year.

BUSINESS IN APRIL RECORD BANK AVERAGE ADVANCES DECLINE IN OVERSEAS TRADE > IMPORTS DISPLAY SLIGHT DECREASE Average bank advances in New Zealand ; during Annl at £55.947.-97 reached a record level, according to the Abstract of Statistics for May. The peak figure, was £56,214,283 on April 4. Since that date the trend has been downward, but the level on May 16 was £55,170,781, still an abnormally high S ln reviewing business for the month the Abstract points out that April normally marks the beginning of the slack season, and the easing in trade in that month this year was accentuated because of the Easter vacation. Last year Easter fell in March- The shorter working time in April this year is reflected in the volume of bank debits, which showed a recession ot 12.5 per cent, compared with March. “The number of registeredl memploved males on May 7 was 8,314, the review says, “an increase ot 1,0990 n the total recorded on April 9. The approach of winter with the cessation of certain avenues of seasonal employment is no doubt responsible for this increase. . . , “Heavy rains during April caused serious flooding in the Hawke’s Hay district, and serious losses of both stock and pastures were suffered. The serious outbreak of facial eczema, particularly in the Waikato district, lias necessitated the destruction of considerable numbers of stock. Wet weather has held up threshing operations in some districts, but returns received from threshing-mill operators indicate that the major portion of the wheat crop had been threshed up to the end of April. “ The volume of overseas trade received a set-back during April, the value of exports dropping 38.3 per cent, below the March total most primary products sharing in this decrease. Apples and pears were exported in considerable quantities during the month, but the quantities did not come up to those for April of last year. Imports recorded a slight decrease compared with March. BANKING. “The average value of bank debits to individual customers’ accounts dropped from £21,520,331 in March to £18,831,445 in 'April. The shorter working month through the Easter vacation falling in April is no doubt the principal factor contributing to this large decrease. The normal trend is for debits to show increases up to March, and with April'to commence the off-season recession. A comparison of bank debits for the 12 months ending with April, 1938, with a similar 12-monthly period of the previous year shows an increase of 5.6 per cent. “ The average figure of total deposits for April shows very little movement, but advances at £55:947,797 have increased by £1,194.803, bringing the ratio of adances to deposits up to 83.37 per cent., compared with 81.57 in the previous month and 68.16 per cent, in April of 1937. “ Net note circulation averaged £lO,140,421 in April, this average being the highest yet recorded, although for weekly periods the figure for the Christmas week of 1937 (£11,679,389) has not been exceeded. “ Not overseas funds of New Zealand banking institutions on account of New Zealand business amounted to £{N Z.)28,617,116 on April 25, being £(N.Z.)2.052,554 higher than the total on March 28. As compared with the Eosition at the end of April of last year, owever, a decrease of £(N.Z.)7,975,474, or of 21.8 per cent., is recorded. EXTERNAL TRADE. “ The value of merchandise exports for April (£4,547.153) was £2,818,453 lower than in March, reflecting the seasonal recession which normally becomes evident after the end of March. Most of the major primary products show considerable reductions both in quantity and in value compared with the previous month. Exports of wool in particular fell from 150,833 bales, valued at £2.222.807, in March to 79,997 bales, valued at £1,151,036, iu April.

MORE CHEERFUL TONE LONDON'S MARKET REVIEW REMARKABLE RESPONSE TO DEFENCE LOAN Press Association— By Telegraph—Copyright LONDON, June 18. . Following hard upon the outstanding success of the Defence Loan has come a batch of excellent company results. The-General Electric Company s profits touched the record , figures ot £1,772,000, and the company’s reserves were further strengthened by the allocation of £IOO,OOO from revenue, to bring them to £4,500,000. The company’s current assets are higher at nearly £8,000,000. The works are fully employed, necessitating recent extensions. The overseas business has continued to improve, considerably exceeding that in any previous year. New Zealand, Australia, the Argentine, and India are especially good customers. Boot Drugs similarly report a record volume of sales, and Callenders Cables show the largest gross profits in history, with a substantial increase of the business done with New Zealand, Australia, and South Africa. The company is still obtaining satisfactory orders. The ‘ Economist’s ’ analysis of the results of 79 companies announced during the week shows an increase of 12 per cent, compared with last year. The total profits of 1,248 companies analysed since January 1 amount to £202,000,000, compared with £179,000,000 in the previous year.

MARKETS STILL DULL. The markets closed cheerfully, but business is still negligible. ’The Defence Loan has not only revived the morale of investors, but also is an impressive demonstration to foreign Powers of Britain’s financial strength. The Government is now financially well ahead of the rearmament task, and will accelerate its spending with a view to mitigating the business recession. Seven copper producers, other than United States concerns, sprang a surprise with the announcement that they are cutting their output on July 1 from 105 per cent, to 95, thus lowering the output by 10,000 tons a month. The deterioration of the position has been caused solely by the precipitate fall in United States consumption and fears that American exports will continue at a high level. FRUIT IN DEMAND The feeling in the commodity markets is more cheerful than for some time Fruit has been in strong demand at higher prices owing to the widespread failure of British crops. BUTTER. Tooley Street is endeavouring to maintain the value of Dominion butter at the present level, but the weakness in Continental stocks is somewhat of a drag on the market. Lower retail prices are likely to improve the consumption and strengthen the situation.

“ The vaule of exports during April of last year amounted to £8,401,986, a phenomenal total for an April month. A comparison with April of this year shows a reduction of £3,854.828, or of as much as 45.9 per cent. This major decrease is due in a large measure to the drop in both quantity and value of wgol exported, the decrease in value of this item for April of this year compared witli April of last year amounting to £2,665.319. “ Imports during April (£4,454,996) continued at a high level, although showing a decrease of 9.2 per cent, from the March total. Compared with April of last year, however, an increase of 2.6 per cent, is recorded. The consistently high level of imports recorded in recent months, combined with somewhat reduced export totals (due to the lower prices of wool), has had the effect of reducing the excess of exports For the 12 months ending with April, 1938, to £2.975 812, compared with an excess of £14,095.204 during a similar period of 1936-37.”

INTEREST RATES Tbo 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 calculations provide for redemption at maturity;— PER CENT PER ANNUM.

HEW YORK SHARE IHDEX DOW JOKES AVERAGE

SYDNEY STOCK EXCHANGE Press Association —By Telegraph—Copyrigtn

MINING NEWS BIG RIVER ANOTHER DIVIDEND DECLARED DISTRIBUTION OF Id. A dividend (No. 2) of one penny a share (free of income tax) has been declared on all shares by the Big River Gold Mines Ltd. The distribution will be payable on July 4. This dividend represents a distribution of £2,500 to the shareholders, which makes a total of £5,000 paid in dividends. Transfer books will be closed from June 23 to July 4.

REPORTS AND RETURNS GLUTHA RIVER DREDGING WASH-UP OF 187 oz. Clutha River Gold Dredging Ltd. reports that during the week ended June 17 the dredge, operating at Alexandra, worked 112 hours to recover 187 oz of gold MURGHISON-MATAKI JUNCTION The Murchison-Mataki Junction return for the week ended June 16 was 470 zof smelted gold for 129 hours’ work and 21,000yds dredged. BIG RIVER The manager of the Big River Gold Mines Ltd. reports as follows for the week ended June 16: — No. 5 Level.—North stope: Filling completed, and stoping commenced over the full length. South stope: Filling almost completed. Centre stope: Taking out block under No. 4 level. The north drive was advanced 7ft, making a total of 38ft. Shaft: The cleaning out of No. 0 chamber is going on very well. . A total of 44 tons of stone were sent to the battery. MONTHLY PRODUCTION. The gold returns for May are as follows ;—The battery crushed 337 tons of ore for 210 oz ICklwt of melted gold. The cyanide department treated 150 tons of sand for 230 z of bullion, the total estimated value for the two departments being £1.570. In addition four tons lOdwt of concentrates were saved, of a value of £125. In estimating the above values gold has been taken at £7 a fine ounce. NOKOMAI The Nokomai Gold Mining Company Ltd. reports that No. 3 paddock worked bv the gravel pumps has been completed, the return being 3490 z lldwt from a little over a third of an acre of bottom. Only one-third of this paddock was deep ground, the remaining two-thirds being high bottom, with very little wash on it. A further small return From the tail boxes and packings has still to conic to hand.

COMPANY NEWS GOLDSBROUGH, MORT NET PROFIT OF £191,342 £15,327 DOWN ON LAST YEAR Goldsbrough, Mort, and Co. Ltd. report that the profit for the year ended March 31' was £191,342, compared with £206,669 the previous 12 months and £179,917 in 1936. The dividend of 7 per cent, is 1 per cent, below last year’s distribution. With the amount brought forward from last year, £14.2,962, less the interim dividend of 2 per cent, paid in December last, there is available for distribution (above the profit named) the sum of £48,000. The directors recommend a final dividend of 5 per cent, (payable in Melbourne), which will absorb £120,000. Transfers to the provident fund takes £IO,OOO, while special provision for income tax amounts to £38,000, leaving to carry forward the sum of £118,304. FOREIGN EXCHANGES OK NEW 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:—

DOLLAR RATES. Tlie Associated Banks (other Ilian the Bank of New South Wales) quotes the following dollar rales 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) ... 3.98 9-16 4.02 - O.D. (dol) ... 3.98 15-16 4.02 7-16 BUYING—OD. (dol) ... 4(02 7-8 4.06 7-16 BUYINGSALES TAX RETURNS APRIL FIGURES LOWER THAN LAST YEAR Collections of sales tax in April were £292,281, according to the ‘ Abstract of Statistics ’ for May. The figure was higher than for the two preceding months, but was £2,801 below the figure for April last year. Total receipts from the tax for the four months of the present year at £1,118,094 are £37,320, or 3.5 per cent, above, the total for the same period of 1937.

Bunk of New Zealand £-1 12 0 N.Z. Refrigerating (cent). £0 12 U Christchurch Gas £5 1 10 Australian Glass £4 1 6 British Tobacco ... £4 6 0 Broken Hill Proprietary ... £4 9 3 6 New Zealand Breweries £4 2

Railroads. Industrials. Turnover. June 18 ... 19.73 113.23 100,000 June 17 ... 19.68 113.06 330,000 June 16 ... 20.05 113.97 340,000 June id ... 20.23 113.24 340.000 June 14 ,. 20.40 112.78 350,000 June 13 ... 20.16 111.87 330,000 June 10 ... 20.53 114.47 410,000 Juno 9 ... 20.81 115.74 590.000 June 8 ... 20.48 113.75 280,000 J une 7 ... 20.55 113.12 370.000 June 6 ... 20.58 113.19 470,000 June 4 ... 20.57 111.82 310,000 June 3 ... 20.22 109.71 280,000 June 8 ... 20.52 110.68 480,000 J une 1 ... 20.60 110.61 530,000 1938. Highest ... 32.33 134.35 Lowest ... .19.00 98.95 1937. Highest ... 64.86 194.40

SYDNEY, June ! 18 Sales on ’Change this morning :— Commonwealth Bonds— £ 8. d. 4 p.c., 1938 100 12 G 4 p.c., 1941 101 3 9 4 p.c.. 1944 101 16 3 4 p.c., 1947 102 15 0 4 p.c., 1950 ... 103 8 9 4 p.c., 1953 104 O 6 4 p.c.. 1955 102 17 C 4 p.c., 1957 ... 103 6 3 4 p.c., 1959 103 12 6 Bank of New South Wales 31 15 0 Tooth’s 2 13 0 Anthony Hordern 0 16 4i Australian Glass 4 12 9 British Tobacco ... 2 5 0 Broken Hill Proprietary ... 2 15 0 Colonial Sugar 47 0 0 Dunlop Perdriau ... ... 0 19 6 Howard Smith 1 0 0

Buying. Selling. London — £100 stg. N.Z T.T. £124 £124 10/ O.D. £123 10/ £124 8/9 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. 4.0195 3.9849 O.D. 4.0295 3.9839 Montreal — Dollars to £1 N.Z T.T. 4.0528 4.0203 O.D. 4.0643 4.0243 Belgium—* Belgas to £1 iCZ T.T. 23.689 . 23.379 , O.D. 23.764 23.390 Czechoslovakia— Korunas to £1 N.Z. ... ... T.T. 118,77 O.D. — 118.82 Denmark— Kroner to £1 N.Z. T.T. 18.203 17.893 O.D. 18.263 17.899 Finland— Marks to £1 N.Z T.T. 185.49 179.69 O.D. 185.89 179.79 France — Francs to £1 N.Z T.T. 141.56 O.D. — 141.60 Germany— Reichiparks to £1 N.Z. T.T. 9.815 O.D. — 9.820 Greece — Drachmae to £1 N.Z T.T. , 429.54 O.D. — 429.84 Holland— Florins to £1 N.Z T.T. 7.302 7.152 O.D. 7.342 7.156 Italy— Lire to £1 N.Z T.T. 75.72 O.D. — 75.77 JavaFlorins to £1 N.Z. ... .. T.T. 7.279 7.129 O.U., 7.319 7.133 Norway— Kroner to £1 N.Z. .. ... T.T. 16.182 15.892 O.D. 16.242 15.898 Noumea — Francs to £1— N.Z T.T. 140.31 O.D. — 140.35 Papeete— Francs to £1— N.Z T.T. . 140.36 O.D. — 140.40 Sweden— Kroner to £1 N.Z T.T. 15.785 15.490 O.D. 15.845 15.496 Switzerland — Francs tc £1— N.Z T.T. 17.573 17.303 O.D. 17.678 17.308 Hongkong— N.Z. pence to 1 dollar T.T. 18 9-64 18 33-64 O.D. 18 7-64 18 33-64 India and Ceylon— N.Z. pence to 1 rupee T.T. 21 15-16 22 7-32 F O.D. 21 29-52 22 7-32 Japan— N.Z. pence to 1 yen T.T. IT 9-16 • O.D. — 17 9-16 Manila — N.Z. pence to 1 peso T.T. 1 O.D. 29 11-16 30 3-16 29 19-32 30 3-16 Singapore— N.Z. pence to 1 dollar T.T. 34 1-4 34 47-04 O.D, 34 5-32 34 47-64