Commerce, Mining, Finance

Evening Star, Issue 23100, 28 October 1938, Page 6

Commerce, Mining, Finance

London Funds Still Declining Broken Hill South Dividend " a Kauri Timber Makes Unchanged Distribution The easy prices at which New Zealand Government Loans are at present being offered caused a swing to that section this morning, and although business was comparatively heavy in these stocks, transactions were made at below par. Other sections were quiet, with a slight easing in some Australian mining issues. Wall Street recovered fractionally yesterday on a turnover of two million shares. . The Reserve Bank’s weekly return shows a further decline in the sterling exchange reserve, a drop of £804,754 carrying the item down to £8,313,575. Broken Hill South Ltd. has declared a final dividend of 6d a share, making 2s 6d for the year (or 50 per cent.), as against last year’s 5s 3d (iOS per cent.). Kauri Timber Ltd. advises the declaration of a final dividend of per cent., making 6 per cent, for the year, unchanged.

GERMAN ECONOMY DEMAND FOR RAW GOODS EFFORTS TO OBTAIN OWN SUPPLIES POPULARITY OF “ SCAVENGER " HUNTS “ Germany’s "whaling fleet has retained from- the 1937-38 season in the Antarctic, , reminding the exporting world that this country is tiding to supply her own- raw materials wherever possible, though it means embarking, literally and figuratively, on a sea of new enterprises ” (says a bulletin from the Washington. D. 0., headquarters of the National Geographic Society). “ Among activities launched during Germany’s second Four-year Plan, begun in 1936, whaling' is conspicuous for progress. The catch during the season just closed yielded nearly 100,000 tons of oil, or about one-third more than that of the preceding season. "VEST-POCKET SHEEP.” "With oil from her ‘floating colonies,’ as the whaling fleet is known, Germany thus augments her supplies of precious butter- fats, and provides material for soap making and cosmetics, as well as lubricants for machines,_ and glycerine for explosives. Additional interest on the ocean investment _ includes dried whale meat and pulverised bone, valuable for fertiliser. “ On land, the Government has encouraged the raising of Angora rabbits, called ‘ vest-pocket sheep,’ because rabbit wool mixed with that of sheep can be used as a spinning fibre in Germany’s huge textile trade.

“ Another venture is seen in experimental farms for breeding silkworms, mulberry trees being planted for the purpose in East Germany. “ More important commercially, however, is soyabean cultivation, now projected on a large scale, by which Germany plans to equip herself not only with an-extensive food source, but with a substance valued by industry. Useful in such varied products as paint, rubber substitutes, insecticides, and explosives—as well as in the _fi eld_ of plastic synthetic materials—this ‘ little honourable plant,’ as nicknamed by the Japanese, is a windfall in Germany’s drive toward self-sufficiency. “ Under the Four-year _ Plan, the Nazis may now write their economic programme with 100 per cent. German lead pencils. Efficiency in the refining process which _ supplies graphite (source of the pencil ‘ leads ’) has increased production almost 100 per cent. Germany no longer imports products for this purpose. WASTE RECLAMATION. “ Sponsored by the plan, a nationwide reclaiming of waste materials for use in Germany’s stock-hungry factories has begun. # _ “ Divided into collection districts, the whole country has turned the debutante game of ‘ scavenger hunting ’ in the United States into Serious business. Independent dealers make reguld* monthly rounds, gathering anything from rags, glass, and tin foil to human hair. Storm Troopers, the Hitler Youth, and_ school children everywhere are mobilised in the service, with 130,000 boys and girls from Berlin alone. , “ Prizes are awarded to schools presenting tlie best * turn-in values. Short films, sandwiched between movie features, remind citizens of their patriotic duties in collection and conservation. Farmers are urged to give up old scrap l irou, and housewives to scour attics for the Fatherland. “In order to save wood pulp tor other purposes, some 64,000 Storm Troopers in one day gathered up 73,441 hundredweight of old waste paper. On the other hand, there is no longer a premium on one article, once as eagerly collected for its value as scrap steel. Razor blades, according to reports from an official German agency, oau=ed more accidents than they were worth.

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

HAIR FOR HATS AND CARPETS, “ Salvaged goods include such small contributions as bottle cans and tooth paste containers, wanted for light metals. Human hair is saved for felt and cardboard manufacture and for iise in carnet weaving. Bones find service in making fodder, fats, and fertiliser as well as glue In the interest of more efficient collection and sorting. Herman citizens are required to keep separate containers for various household wastes. „ , , ... “ Coffee grounds, first washed with gasoline, to obtain their fat content, useful in soap jnaking, are later

treated for the extraction of wax and resin. A brownish powder residue has been tried out by industry as a substitute for wood flour in fillings for dolls and cheap pillows, as well as an ingredient in the manufacture of house mouldings, composition p'lates, and similar articles. “Even in German garbage pails today, the inquiring alley cat finds lean pickings. Kor here is refuse which—steamed and sterilised and mixed with crushed barley or fish meal—may serve as hog feed. By the end of 1938 it is estimated that '200,000 hogs will have been fed from such waste materials in fattening centres of the Nutrition Auxiliary Organisation, established in 193(5.”

RESERVE BANK RETURN STERLING EXCHANGE RESERVE AGAIN LOWER LEVEL NOW £8,313,575 The Reserve Bank return for the week ended October 17, gazetted last evening, shows a further decline m sterling exchange holding. At £8,313,575, it is £804,754 below last week s figure. ", The proportion of reserve to notes and other demand liabilities is 48.451 per cent., compared with 52.27 per cent, in the previous week. The figures at the close of the previous week, are given with this week’s return ’ fdr purposes of comparison, shillings arid' pence being omitted LIABILITIES. Last weak. This week. £ £ 1. Genera, Reserve Fund 1,500,000 1,500,000 2. Bank notea 13,907,665 14,349,893 3* Deinan * ( a ) s-tate 3,133,503 2,878,486 -(b) Banks ... 5,449,056 5,361,290 ( ( c) Other . 387,077 816,238 4. Time Deposits ~ 5. Liabilities if currencies other than New Zea- .. : land currency ... ,i. 24,268 17,039 6. Other liabilities 160,933 267,618 Total £24,433,393 £24,690,668 ASSETS. 7. Reserve—(a) Gold 3,801,791 2,801,791 (b) Sterling exchange 9118,339 8,313,575 (c) Gold exchange 8. Subsidiary coin 224,300 223,309 I). Discounts — (a) Cotrmersial and - I agricultural bills (b) Treasury and local body bills 10. Advances — (a) Tt State or State undertakings (1) Primary products Marketing Department 3,886,740 3,859,205 (2) For otitw purposes 5,550,000 6,450,000 (bl To other public authorities ... (c) Other 11. Investments ~ 2,732,064 2,733,064 12. Bank butld.ngs 1 13. Other assets 120,164 311,720 Total £24,433,392 £24,690,666 Proportion of reserve (No. 7 less No. 6) to notes' and othe- d- IT!and liabilities ... ... 52.27% 48.451% Sterling exchange is expressed in New Zealand currency.

PRICE OF GOLD X Press Association—By Telegraph—Copyright LONDON, October 27, (Received October 28, at noon.) Fine gold is quoted at £7 5s 7d an ounce.

NEW YORK SHARE INDEX DOW JONES AVERAGE Railroads. Industrials. Turnover.

METALS EASIER RESTRICTED FALLS RECORDED TIN STILL AT HIGH LEVEL Press Association—By Telegraph—Copyright LONDON, October 27. (Received October 28, at 1 p.m.) Following are to-day’s official (middle) quotations on the London metal market, as reported by the Australian Mines and Meta! Association, compared with those of October 26: — Oct. 26, Oct. 27.

AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, October 27. On the Stock Exchange to-day exceptionally quiet conditions prevailed owing primarily to the impending loan conversion. Practically all sections of the market were weaker. MORNING SALES.

MELBOURNE. October 27. Bonds are steady. The market was cautious to-day in view of the fall recorded in New York. ‘ Heralds ’ strengthened on the increased dividend. Other industrials are unaltered. Commercial Bank of Aus-

Additional equipment is to be installed shortly by one of the largest asphalt companies in Pern in order to meet the growing local demand. Domestic demand for asphalt in Peru has been stimulated by intensive highway development within that country. Asphalt production in Peru in 1937 amounted to 78.641 barrels of 42 gallons each, which, with the exception of 11 tons slopped to Chile, were consumed locally.

COMPANY NEWS BROKEN HILL SOUTH FINAL DIVIDEND OF 6D YEAR'S PAYMENTS TOTAL 50 PER CENT. [Pek United Press Association.l WELLINGTON, October 28. Broken Hill South Limited has advised the New Zealand Stock Exchange Association that a dividend of 6d a share has been declared. The distribution is the fourth and last of the current financial year, the two first quarterly payments being each of 9d, and the third of 6d. In 1936-37 the company paid four dividends, one of Is and three of Is 3d a share. KAURI TIMBER FINAL OF & PER CENT. UNCHANGED DISTRIBUTION FOR YEAR The directors of the Kauri Timber Company Ltd. announce that, subject to audit, they have resolved to recommend that a dividend at the rate of 7 per cent, per annum be paid for the half-year ended August 31, making, with the interim dividend paid in June, 6 per cent, for the year. Transfer books will close at noon on November 3. , . The dividend is at an unchanged rate.

POLICY OF GOODWILL N.Z. GUARANTEE CORPORATION CHAIRMAN'S REVIEW At the beginning of this year the demand for accommodation from the clients became so heavy that the directors found themselves working too dangerously near the limit of their resources, said Mr W. Thorpe, chairman of directors of the New Zealand Guarantee Corporation Ltd., at the wellattended fifteenth annual general meeting of shareholders. , , . “ It is quite possible, and highly probable,” he said. “ that we could have got farther accommodation from our bankers, but I will be quite qandid with you and say that I was extremely hesitant about doing so. The outlook at that time, to some of us, did not look too bright, and even to-day it does not appear to me to be very rosy, and in my opinion certainly calls for a very cautious policy. I do not think it would be wise for any company such as ours to be tempted to take_ in increased liabilities, because I think we can continue to do a satisfactory busi- 1 ness with the resources we have available. In order to curtail the demand for our funds, and to bring our finances into a sound and healthy position, it was found necessary to devise ways and means for doing so in February, and I am very plehsed to say that we were soon able to bring about the_ desired effect, and, at the same time, .consolidate the advances we had already made, without seriously prejudicing our goodwill.”

FOREIGN EXCHANGES ON NEW ZEALAND CURRENCY BASIS The Bank of New South Wales, Dunedin, quoted the following rates to-day for purchase and sales of foreign exchanges (all rates subject to alteration without notice) Buying. Selling.

MOUNT LYELL SHARES Press Association— By Telegraph- Copyngtn LONDON, October 27. (Received October 28, at 1 p.m.) Mount Lyell shares are quoted at •28s Gd. SYDNEY WOOL SALES Press Association— By Telegraph—Copyrigo SYDNEY, October 27. Under strong; competition from tin Continent and Yorkshire, the wool sales dosed at the best point of the week for good to super, wools. The latter showed a distinct hardening tendency, but the demand for inferior sorts was irregular. Greasy merino made 10Jd. the highest for the season The offerings totalled 11,728. 11,050 lining sold in°a(lditiun to 1,210 disposed of privately.

DIVIDEND AND CALL LIST. DIVIDENDS DUB. United Provisions—Ord., 3 per cent pref., final half-yearly. 4 per cent. .. .. Oct. 28 Lustre Hosiery- Interim, ord., and pref., 4 per cent Oct. 28 terly pret., 6), per cent, per annum Oct. 31 Drug Houses of Australia —3J per cent., making 6i per cent, per annum ... Oct. 31 Macky, Logan—lnterim, 2J per cent No*- I Australian Iron and Steel, pref. 6 13-16 per cent Nov. 1 D.I.C. Ltd. —Final, pref., 2$ per cent ; ord., 6 per cent Nov. I Martha Gold Mine-Interim. 9d (free of lax) ... Nov. 1 Imperial Chemical Industries— Ord., 3 per cent Nov. I Australian Iron and Steel —Pref., 5 13-16 per cent Nov. 1 Bank of Adelaide—lnterim, at 5 per cent, per annum Nov. 2 Matak’ Junction Dredge—lJd a share Nov. b Emperor Gold Mines—ls a share Nov t . 10 N.Z. Paper Mills—lnterim, halfyearly, 3 per cent Nov. 15 Broken Hill Propty —Half-yearly, Is 3d a 'share ... •• Nov 23 National Bank of Australasia—lnterim at 6 per cent, per annum Nov. 30 CALLS DUE. Woolworths Properties Ltd.—los a share, making £1 paid ... Oct. 31 Broken Hill Ply.—Con., 5s a share, making 15s 4d paid ... Nov. 3C John M'Grath Ltd —ls a share, making 16s paid Nov. i Felt and Textiles Ltd —ss a share, making £1 paid Deo William Adams-Ord., 3s 6d a share, making 10s 6d paid ... Dec M 'I. Paper Mills.—New, 5s a share, making £1 paid Dec 31

October 26 ..£7 5 9 October 25 .. 7 5 11 October 24 .. 7 5 11 October 21 ... .. 7 6 2a October 20 .. 7 5 91 October 19 .. 7 5 81 October 18 .. 7 6 2 October-17 ... .. 7 6 6 October 13 .. 7 6 91 ' ' October 7 .. 7 6 0 October 3 .. 7 4 81 . September 1 .. 7 3 01 August 2 .. 7 1 8 July 1 ... ... .. 7 0 9 June 1 .. 7 0 71 May 2 ., 6 10 61 April 1 ... ... , .. 7 7 01 March 1 .. 6 19 91 February 1 ... .. 6 19 7 January 3 ... .. 6 19 5

Oct. 27 31.94 152.09 2,000,000 Oct. 28 31.58 152.40 1,700,000 Oct. 25 32.00 154.17 1,490,000 Oct. 2+ 31.73 154.11 1,130,000 Oct. 22 31.59 154.41 1,130,000 Oct. 21 31.13 152.15 1,720,000 Oct. 20 30.99 151.52 1,620,000 Oct. 39 30.71 150.02 2,450,000 Oct. 18 30.63 152.10 2,410,000 Oct. 17 30.33 150.81 2,520,000 Oct. 15 30.86 151.96 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 1938. Highest 32.33 154.41 Lowest 19.00 98.95 1937. Highest 64.86 194.40 Lowest 28.01 113.64

£ a. d. £ s. a Copper— Standard, spot 46 18 U 46 15 71 Forward 47 3 1* 46 19 4J> Electrolytic spot 52 15 0 53 5 0 Forward 53 15 0 53 10 0 Wire bars— Spot 53 15 .0 15 10 0 LeadSpot 53 15 0 \ 53 10 0 Forward 16 15 7 i 16 13 li Spelter— Spot ' ... 15 10 0 15 8 9 Forward 15 10 7| , 15 9 4£ Tin— Spot 212 5 0 211 12 6 Forward 213 6 3 . 212 12 6 Silver— Fine, per oz ... 19 5-8d 19 5-8d Standard, per oz 21 3-16d 21 3-16d

£ s, d. Commonwealth Bonds —■ 4 per cent., 1938 101 10 0 4 per cent, 1941 102 10 0 4 per cent., 1944 Broken Hill Proprietary ... 101 10 0 2 18 0 Colonial Sugar '.. 48 10 0 Dalgety ■ Dunlop Perdriau Electrolytic ’Zinc 7 18 0 1 0 7} 3 5 9 Felt and Textiles 1 11 6 General Industries 0 18 3 Kandos Cement ... .;. ... 16 6 AFTERNOON SALES. Bank of New South Wales 31 5 0 Bank of Australasia 10 6 0 Commonwealth Stock, 4 p.c., 1944 (New Zealand delivery) 101 7 6 Colonial Sugar ... 48 7 6 Howard Smith 0 19 4J Tooths 2 14 , 6 Dunlop Perdriau 10 6 Australian Glass 4 19 0 Farmers ... 1 10 3 Lustre 119 Kandos 16 0 Mort’s Dock 0 11 11 Producers and General ... 0 4-7 Australian General Insurance (New Zealand delivery) ... 0 16 H Masonite .& ... ... ... 0 18,, 5 Woolworths 1 1 0 United Provisions 0 7 11 Wilcox, Mofflin 0 6 11 Grimley .. ; .... 110 Electrolytic Zinc 2 5 9 Mount Morgan 0 10 10 Mount Lyell 1 10 3 Kuala Kampar 0 18 3 Rawang 0 8 11 Placer Development (New Zealand delivery) 3 15 0 Bulolo Gold 6 15 0 North Broken Hill 2 12 0 Oil Search 0 7 4

£ s. d. trali a 0 16 9 E.S. and A. Bank 5 6 t) National Bank (£5 .paid) ... 6 14 0 National Bank (£10 paid) 14 7 0 Australian Glass 5 0 U Dunlop Perdrian 1 0 5 Dunlop Perdrian (pref.) ... 1 18 6 Goldsbrough, Mort 1 8 6 Felt and Textiles 1 11 6 ‘ Herald ’ and ‘ Times ' ... 2 18 6 Australian Foundation Investment Trust 0 5 0 Imperial Chemicals (pref.) 1 2 7 Electrolytic Zinc (pref.) ... 2 5 6 Mount Lyell 1 10 0 Broken Hill Pronrietary ... 2 18 0 North Broken Hill 2 11 9 Broken Hill South 1 12 1

London— £100 stg. N.Z. T.T. O.D. £121 10/ £121 1/3 £125 £124 19/6 Australia— £A to £100 N.Z. T.T. £100 10/ £100 Fiji— £F to £100 N.Z. T.T. £90 £88 12/6 New York— Dollars to £1 N.Z T.T. 01D. 3.8383 3.8133 3.8030 3.8040 Montreal— Dollars to £1 N.Z T.T. O.D. 3.8701 3.8791 3.8359 3.8369 Belgium— Belgas to £1 N.Z T.T. O.D, 22.719 22.821 22.439 22.114 Czechoslovakia— Korunas to £1 N.Z T.T. O.D. - 109.80 109.82 Denmark— Kroner to £1' N.Z T.T. O.D, 18.131 18.191 17.821 17.823 Finland— Marks to £1 N.Z T.T. O.D. 181.70 185.10 178.90 179.00 France— France to £1 N.Z T.T. O.D. 111.59 142.09 142.11 Germany— Reichsmarks to £1 N.Z. ... T.T O.D. z 9.453 9.455 Greece — Drachmae to £1 N.Z. ... T.T. O.D. - 428.98 429.13 Holland — Florins to £1 N.Z T.T. O.D. 7.112 7.152 6.962 6.961 Italy— Lire to £1 N.Z T.T. O.D. 72.291 72.316 JavaFlorins to £1 N.Z T.T. O.D. 7.090 7.130 6.910 6.942 Norway— . Kroner to £1 N.Z T.T. O.D. 16.119 16.179 15.829 15.832 Noumea— Fraucs to £1 N.Z T.T. O.D. 147.09 140.34 140.38 Papeete— Francs .to £1 N.Z v T.T. O.D. 116.49 140.49 140.53 Sweden — Kroner to £1 N.Z T.T. O.D. 15.736 15.796 15.441 15.444 Switzerland — Francs to £1 N.Z T.T. O.D. 16.976 17.081 16.706 16.708 Hongkong— N.Z pence to 1 dollar T.T 0.0 18 29-61 18 27 64 18 53-64 18 53-64 India and Ceylon N Z. pence to 1 rupee T T O D 22 15-61 22 13-61 22 33-64 22 33 64 Japan— N.Z. pence to 1 yen T.T. O D - 17 19-32 17 19-32 Singapore— N.Z pence to 1 dohar ... T.T O.D. 31 19-32 34 1-2 35 5-64 35 5-64