Commerce, Mining, Finance

Evening Star, Issue 23092, 19 October 1938, Page 8

Commerce, Mining, Finance

Election Reflections in London Maintaining Control of Copper Price Victoria Nyanza Sugar's Profits Australian issues received more attention on the Dunedin Stock Exchange to-day than they have at any time during the past fortnight. For sound industrial scrip there was a good demand and prices displayed a tendency to advance. New Zealand issues remained clouded by the General Elections, however, and easy levels ruled. Sydney remained firm yesterday with a few slight rises. Significance attaches to the cablegram report that modest buying orders on behalf of New Zealand investors helped to maintain the level of industrial shares. New York made a smart recovery yesterday, Dow Jones closing just short of the year’s “ high ” on a turnover of almost two and a-half million shares. According to the 4 Financial News,’ Labour s New Zealand victory disappointed the bond market. Although there is little selling pressure, stocks are being gathered quietly by buyers hoping for a swing of the pendulum. Three copper-producing controllers, operating under the restriction scheme, have removed all restrictions temporarily, thus causing a fall in the metal’s price. The Victoria Nyanza Sugar Company Ltd. reports a net profit of £23,071 for the year just ended, as against £25,624 in the previous period. Dividend has been held at 6 per cent.

CRISIS AFTERMATH

both possible worlds. Most experienced people know that this is not an enduring basis for any policy. BRITAIN’S TRADE WITH GERMANY. If now we examine the trade of Germany with the United Kingdom, we get the following result: — Second quarter, 1939 193 d. £I,OOO £I,OOO imports from Germany ... 17,700 7,100 Exports to l.eimany 9,300 4,700 Surplus yl imports £8,400 £3,400 There is still a balance favourable to Germany, but it is much less favourable than before. Out of this surplus Germany must meet interest on the debts she has not already repudiated and finance her purchases of materials from other parts of the Empire. In spite of the German campaign for selfsufficiency, she is still the best customer for British goods outside the Empire. This is a surprising fact. Can she be made a better customer if not for British goods for the raw materials and foodstuffs that the dominions and the colonies produce? We cannot expect to draw out of her own introspection by remaining introspective ourselves. The only course to pursue is one that will increase our own purchases of German products. Australia has as much to gain from this policy as any dominion. From taking about 8 per cent, of our exports before the depression, the German proportion has dropped to less than 2 per cent. It will be argued that any policy of economic appeasement involves interference with internal industry, and is therefore contrary to the economic interests of British countries. That this is a short-sighted view of the situation is shown by the recent trade discussions in London between the United Kingdom and Australia. Both countries expressed the view in the joint declaration that they had to consider their foreign trade relations as well as their internal situation and their relations one with another. It is not a question of abandoning Imperial trade policy or the respective tariff systems of the two countries, but of making such modifications in these policies as will make them acceptable to the outside world, and contribute towards the paramount task of creating economic security for other countries which have lost most in • the general adoption of a policy of economic nationalism. The remodification of existing trade and tariff policies certainly requires an act of self-discipline on the part of democracies, but in the light of recent events, it is not too much to expect. In the long run the benefits should far outweigh any costs involved. SHEEPSKIN SALE COMPETITION KEENER PRICES APPRECIATE ID TO ID The Dunedin Stock Agents and Woolbrokers’ Association reports as follows: The catalogues offered at yesterday’s sale totalled about 11,000 skins. Competition was keen on all sound pelted skins, and appreciated by |d to Id per lb on the previous sale. Shortwoolled and dead and damaged also met with a better sale. The following is the official range of prices for the main grades:—Merino, full-woolled, to 9Jd; half-bred, fullwoolled, to 91d; half-bred, three-quarter-woolled, to 9|d; half-bred, halfwoolled, to 8d; half-bred, quarterwoolled, to 6|d; fine cross-bred, fullwoolled, to 94d; fine cross-bred, three-quarter-woolled to 9d; fine cross-bred, half-woolled. to cross-bred quarter—woolled, to s|d; half-bred hoggets, quarter-woolled. to Gjd; cross-bred, fullwoolled, to 9d; cross-bred, three-quarter-woolled, to BJd; cross-bred, i fialf-woolled, to 7 jd; cross-bred quarterwoolled, to 6|d; half-bred hoggets, to B|d; fine cross-bred hoggets, to B|d; cross-bred hoggets, to Bjd; half-bred lambs, to 74d; cross-bred lambs, to 6|d; half-bred dead, to B£d; fine crossbred dead, to Bjd; cross-bred dead, to 7Jd; first pelts, to 4|d; second pelts, to 3Jd. SHARE QUOTATIONS Press Association - By Telegraph—Copyright LONDON, October 18. (Received October 19, at 1 p.m.) Share quotations Cluthn River—buyers Is Cd, sellers Is 9d; Molyneux—buyers 9d, sellers Is.

LESSONS TO BE LEARNT ECONOMIC BARRIERS GREAT BRITAIN'S PART In the historic speech in the House of Commons Mr Chamberlain remarked that it was Lord Runciman’s view that “ the integrity of Czechoslovakia could be maintained only if her policy, internal and external, were directed towards enabling her to live in peace with all her neighbours.” These are by no means the most dramatic words in Sir Chamberlain’s speech, but they point a moral that might well be taken to heart by cither countries. The world averted armed conflict by the narrowest jnargin, and it will not avert it for long if it continues the policy of armed peace that has been so ruinous to international co-operation in the last 20 years (writes Professor D. B. Copland; in the ‘Sydney Morning Herald’). Can the present situation be used to promote improved relations and thus to lessen the political and economic strains that divide Europe into conflicting camps? This is a large problem, but it is a problem that every nation that desires peace in its time should examine in a spirit of humility. Tho onus is on the countries that have enjoyed a rising standard of living in recent years to model their policies on lines that will win the support and admiration of the less fortunate countries. This is, to a large extent, a matter oi economic and trade policy. Economic insecurity drove Italy and Germany into their Fascist ideologies, and economic insecurity in Central and South-eastern, Europe is still capable of driving other countries into the grasp of these Fascist Powers. It is not enough for the democracies to say that they are prepared to enter into negotiations with these Powers for improved trade relations. They must examine their own trade practices to ascertain whether these pujctices are consistent with the larger objective of promoting general economic appeasement. In particular, it is important that the British Commonwealth should consider whether its own policy has not been too introspective, too much concerned with preserving a somewhat favoured position, and too little concerned with the difficulties of others. POLICY OF INTROSPECTION. The policy of introspection is expressed in the Ottawa agreements, in the general stiffening up of preferences, in abandoning the open door in colonial administration, in resisting the abandonment by other nations of the most-favoured-nation clause when they desired to form an economic group, and in withdrawing from the field of international investment. It is true that Great Britain has a better record in trade policy than most other countries, but it is also true that she has embarked upon a series of defensive measures that have constituted a definite breach of her traditional policy. For the moment she is the more prosperous, and a recent investigation shows she has enjoyed_ a quite remarkable increase in material prosperity in the past decade. National output in 1937 was 20 per cent, higher than in 1929. The dominions have also experienced a striking expansion of output, and the trade of °the United Kingdom with Empire countries has grown at the expense of trade with the rest of the world. The most recent figures are as follows; UNITED KINGDOM TRADE. First quarter. EMPIRE COUNTRIES. 192!). 1933. 1938. Imports .- 30.8 38.9 43.3 Exports «.4 44.0 50.2 EUROPE. Imports M ... ■» ... 38.3 34.6 81.7 Exports ... ... 33.5 35.7 83.6 OTHERS’. Import 30.9 26.5 25 0 Exports 23.1 20.3 16.3 The proportion of imports from British countries has increased greatly, while Europe and other foreign countries have lost in the change. The fault, if it be one, is hardly a responsibility of the United Kingdom. The dominions must surely ask themselves whether in pressing for favours in the British market, they have not increased Britain’s difficulties in Europe. Foreign countries do not accept the principle _ of Imperial preference as being consistent with dominion status. They regard it as a breach of the most favoured nation clause and an attempt, hitherto siicccsslul, on the part of the dominions to get the best of i

WOOL SHIPMENTS

THEIR DESTINATIONS ANALYSED ENGLAND STILL OUR LARGEST CUSTOMER FRANCE TAKES SECOND PLAGE The practice generally adopted of taking the ordinary Customs returns in regard to the destination of woo! shipments has its shortcomings, as in many cases the port of shipment is not the final destination of the wool. Authentic information regarding the destination ot purchases is published in Dalgety and Co. Ltd.’s annual wool review, the company having received the co-operation of wool buyers operating in Australia and New Zealand in compiling the returns. The outstanding feature revealed is that England retains her position as New Zealand and Australia’s largest customer, taking 1,248,354 bales, or 30 per cent., as compared with 1,107,062 bales, or 31 per cent, of the total in the 1936-37 season.

NEW YORK SHARE INDEX 00W JONES AVERAGE

Japanese purchases were disrupted for the second season in succession, and her buyers were only active for approximately half the selling period. The total purchases amounted to 324,428 bales, or 10 per cent., as compared with 441,709 bales, or 12 percent., in 1936-37, and 861,803 bales, or 24 per cent., in 1935-36. There were some changes in the Continental countries, and in the aggregate the support from the Continental section was appreciably increased, despite the difficulties many countries still find in financing purchases. There was a definite falling off in American support, France took 16 per cent, as compared with 10 and 11 per cent, in the two previous seasons, and Belgium took 11 per cent, compared with 14 per cent, m 1936-37. Germany took 8 per cent., as against 5 per cent, in 1936-37, and Italy and Switzerland 3 per cent., as compared with 4 per cent, in the previous season. Taking the Continental countries as a whole, they absorb 41 per cent., as compared with 35, 33, and 36 per cent, in the previous seasons. Local manufacturers lifted 12 per cent., compared with 11 and 10 per cent, in the two previous seasons. The following is a summary showing the percentage proportions of the Commonwealth and New Zealand sales absorbed by each country during the past three seasons:—

PRICE DF GOLD Press Association—By Telegraph—Copyright LONDON, October 18 (Received October 19, at noon.) Fine gold is quoted at £7 6s 2d an ounce.

THE WORLD'S TOBACCO

PRODUCTION AND CONSUMPTION In 1936. the United Kingdom imported 37,000,0001 b of tobacco, valued at over £4,500,000. The consumption in the United States in the same year has been estimated at 847,000,0001 b, of which more than half was smoked in the form of cigarettes. The steady increase in the consumption_ of cigarettes lias indeed been the Dominating factor in the tobacco trade since the war, and has been associated with a allow fall ill cigar smokin'*. The consumption of cigarettes in the United States increased from 0.14 a head in 1900 to 0.34 in 1910, and exceeded 21b a head in 1925. By 1936 it had risen to 3.41 b a head, when the consumption of cigars fell to 1,021 b a head from a peak of 1.871 b in 1920. These changes in consumption, which have occurred also in the United Kingdom, have brought considerable shifts in the type of tobacco produced, by stimulating the output of flue-cured tobacco, at the expense of fire and aircured varieties, which are used for cigars and pipe tobacco. India, China, and the United States are the three largest growers of tobacco. The United States of America consumes two-thirds of its domestic crop, but, even so, exports four times as much as any other country. FOR HOARDERS ONLY GOLD BARS IN MINIATURE PARTICULARLY POPULAR ON CONTINENT Until comparatively recently gold hoarding was generally considered to be bad form, if not a sin against the community. Last year’s gold scare, however, revealed the difficulties that might arise from an inadequate demand for gold and a fall in its price. One of the consequences has been a subtle change in the attitude towards hoarding, and in the past 12 months a number of steps have been taken both by the authorities of different countries and by private institutions which, whether intentionally or not, have had the effect of facilitating gold hoarding. Some months ago the embargo on lending on the security of gold was removed; even earlier the embargo on hoarding gold coins was abolished. Central banks, with the notable exception of the Bank of England, have taken to catering for the requirements of the retail hoarder, by selling out their stocks of gold coins—at an attractive premium. The supplies of coins that are available wore not sufficient to cover the demand by small hoarders during the recent gold rush, and the premium on coins against their bullion value rose to 6 per cent. In order to meet the requirements of those who could not afford to hoard standard bars of 400 oz, the assaying firms have been engaged for some time in producing small bars, against a charge of 5d an ounce with a maximum of 8s a bar. The bars of one kilo are particularly popular among small Continental hoarders, but there is also a fair demand for quite small soz bars with a value of approximately £35 each. Needless to say, these bars are not good delivery in the market, and are only bought by dealers for the purpose of melting them down into bars of standard size at the expense of the seller. For many reasons the small bars are far loss convenient than the coins for the small hoarder, and since the premium on coins has declined to 3 per cent, as a result of the hill in the gold rush, the small bars are likely to lose much of their recently-acquired popularity.

Highest price in 1938, September 28, £7 7s; lowest price in 1938, January 3. £6 19a sd. Highest price in 1937, March 6, £7 2s 7 id; average price in 1930, £4 5s an ounce.

MINING NEWS GOLD RETURNS COMPANY REPORTS TABULATED Returns of gold companies as received last week are as follows: — Addison’s, 35h*, 350 z. Clutha River, 127 h, 1350 z. Kildare, 9 weeks 4 days, 27.050 z. Mataki, 131 h, 50oz. Murchison-Mat., 131 h, 83oz. New River, IlOh, 530 z. Nemona, 30h, 320 z. Talisman Dubbo, fortnight, £134. Waitahu, 76h, 30.60 z. White’s Electric, 126 h, 460 z. Worksop Extended, 128 h, 60oz. Rimu, 127|h, 243.250 z. ‘Shifts. REPORTS AND RETURNS WAITAHU The Waitahu Gold Mining Company reports that the final wash-up in No. 16 paddock resulted in a return of 30oz 12dwt for nine shifts and a-half of eight hours each. This makes the total gold recovery from this paddock 170 oz 2dwt since elevating operations commenced on August 13, 1937. From the stripping operations 3oz were obtained, making a total of 1730 z 2dwt from this paddock. BARRYTOWN [Pee United Press Association.] GREYMOUTH, October 19. The Barrytowu dredge return for the first half of October was 300 oz for 202 hours (93,000 yards dredged). COMPANY NEWS VICTORIA NYANZA SUGAR PROFIT DECLINES £2,500 DIVIDEND HELD AT INCREASED RATE The Victoria Nyanza Sugar Company Ltd. reports a net profit for the year ended June 30, of £23,071, as against £25,624 in 1937 and £17,336 in 1936. Dividend of 6 per cent, is unchanged. SEARCH FOR OIL NEW GUINEA AND PAPUA Press Association—By Telegraph—Copyright SYDNEY, October 18. The quest for oil is to be intensified in New Guinea and Papua by a n--\ company with £1,000,000 capita] and known as the Anglo-1 ranian Oil Company of London and the Standard Vacuum Oil Company of New York iucorported under the name of the Australasian Petroleum Company Proprietary Limited,

o co CO CO CO >6 to co co co C3 O C5 United Kingdom 29 31 36 Japan 24 12 10 France 11 10 16 Germany and Austria 7 5 8 Belgium and Holland ... ... 12 14 11 Italy and Switzerland 1 4 3 United States 4 11 1 Russia, etc 2 o 3 Local users ... ... 10 11 12

Railroads. Industrials. Turnover Oct. 18 30.63 152.10 2,410,000 Oct. 17 30.33 150.81 2,520,000 Oct. 15 30.35 151.98 1,470,000 Oct. 14 31,13' 151.45 1,950,000 Oct. 13 31.50 152.46 2,360,000 Oct. 11 30.44 149.41 1,550,000 Oct. 10 29.50 149.55 1,660,000 Oct. 8 29.88 149.78 1,110,000 Oct. 7 29.11 148.41 1,460,000 Oct. 6 28,85 148.10 2,450,000 Oct, 5 28.46 148.40 2,240,000 Oct. 4 26.60 144.31 970,000 Oct. 3 26.51 144.37 1,460,000 Oct. 1 26.40 143.21 950,000 Sept. 30 25.58 141.53 1,900,000 Sept. . 29 24.59 157.26 1,230,000 Sept. 28 23 05 133.78 1,570,000 Sopt. , 27 22.05 130.29 770,000 Sept 26 22.00 130.01 1,230,000 Sept. 24 23.78 133.12 800,000 Sept. 23 23.88 134.18 720,000 Sept 22 24.47 137.45 470.000 Sept 21 25.29 139.39 1,030,000 Sept. , 20 25.00 138.51 1,200,000 Sept 19 24.18 134.20 830,000 Sept. 17 23.44 131.02 740,000 Sept. 16 24.10 134.95 670,000 1938. Highest 32.33 152.46 Lowest 19,00 98.95 1937. Highest 64.86 194.40 Lowest 28.01 113.64

October 17 ... £7 6 6 October 13 ... 7 6 94 October 12 ... 7 6 5 October 11 ... ... 7 6 H October 10 ... ... 7 5 10 October 7 ... ... ... 7 5 0 October 8 ... 7 4 84 September 1 ... 7 3 04 August 2 ... ... 7 1 8 July 1 ... 7 0 9 June 1 ... 7 0 74 May 2 ... 6 10 64 April 1 ... ... ... 7 0 04 IV Larch 1 ... 6 19 94 February 1 ... 6 19 7 January 3 ... 6 19 5