REVIEW OF THE WEEK

Evening Star, Issue 23101, 29 October 1938, Page 14

REVIEW OF THE WEEK

VALUES GENERALLY STEADY SMALL MOVEMENTS IN N.Z. SCRIP T’ORE ATTENTION TO SOUND SECURITIES 'Although the trend of the New Zealand, investment market during the week ended last night produced little out of the ordinary, in fact the period was comparatively quiet, several items of financial were reported. Wall Street maintained its upward course, and last Saturday touched its highest point this year, tin was also marked up to the year’s best level, while the capital export restriction imposed by the trading banks in New Zealand is of vital interest to local investors. Recorded business on the local Exchange fell away sharply, due in a largo part to the Labour Day holiday. A feature of the general trading, however, was the preference evidenced for sound New Zealand securities, no fewer than a third of the total transactions being,in Government loans, local body debentures, and banking scrip. Loans and Bank of New Zealands (five transactions in the latter stock were recorded) at present offer an attractive avenue of investment. The four listed transactions were all made at below par, while Bank of New Zealands at the week’s sale price of £2 ls 3d return £4 17s. The market for this stock continued to ease towards the close, and; final' sellers jquoted the above sale price. ’ Commonwealth mining scrip fluctuated in sympathy 'with the base_ metals market, which closed' the -period appreciably; firmer. but share values displayed only a slight appreciation. Commonwealth industrial issues were quiet, and remained generally steady following the general lethargic conditions which ruled .operations for the grater nart of the neriod. The New Zealand share sections have not yet completely thrown off the lethargy which appeared following the election result. Hesitant buyers were slightly more numerous, however, while frequent purchases were made by investors picking up, parcels at what they considered attractive rates. Australian Economy. oniet, conditions prevailed on the leading transtasman exchanges during the week, owing primarily to the impending loan conversion. Company reports from the Commonwealth continue to record industrial progress, hut that a check to the advance is approaching is evidenced by some recent dividend declarations Industry and trade in Australia continue to fun counter to the contraction in national income. ’ Manufacturers report good business, retail houses still report brisk trade; but on the other hand, however, there is evidence of a contraction in the quantity of orders coming to hand in manufacturing circles, and. this foretells the inevitable easing of fth§ general position. _ The present wool clip, affected as it is by the bad conditions of last season, is expected to bring in a greatly diminished cheque, while the decreased lambing must-- affect the clip for the 1938-39 period.

U.S.A. Optimistic.. Wall Street remains in a bullish mood. Dow Jones industrials have hovered above the 150 mark for almost half a month now, and there are those chartists who predict that it will touch the 160 mark before long. Meanwhile the business recovery continues. New capital issues continue to be made on favourable terms, and the significance of this is not being overlooked by those who have made investments in the States. Pressure of funds available for investment is still reported to be ' playing a firming _ part. The trade ' and business indices continue favourable. Railroad orders are increasing, machine tool orders are reported to be rising, motor companies are adding to their staffs and increasing their budgeting totals. The inventory position in most industries has got bark‘to normal or is on the light side. “ Allowing for the known tendency of American investors to read all things Optimistically when the market is in bullish mood, and their characteristic of discounting recessions or improvements .well ahead,” stated an Australian brokerage house’s circular, “ present conditions support the belief that, given nd outstanding disturbance in the international sphere, the market should register still further increase.” LATEST SALES. Sales since the last review have been as follows:New Zealand Government Loans.—3] per cent*. Stock, March, ]9.19-43, £93 10s; 4 per cent. Stock, 1943-46, £99 15s; 4 per cent. Stock, 1943-46, £99 10s; 4 per cent. Stock, 1952-55, £99 15s. • , • Australian Loans. —4 per cent. Commonwealth Bonds, 1950; £lO3 7s 6d. Local Body Debentures. Dunedin City, 4J per cent., ,1.4.47-50, £103; Invercargill City, 4i per cent., 1.11.40, £102.’ Banking,—New Zealand, £2 Is 3d (5); Commercial, 16s lOd; Union of Aust., £8 15s 9d. Insurance. —South British, £2 2s 3d. Shipping.—P. and O. Deferred Stock, £1 6s. Oil. —Taranaki, 13s Bd. Miscellaneous. Anthony Hordern, 15s 6d; . Broken Hill Proprietary, £2 17s 9d; G. J. Coles, £3 19s 4)d; Hume. Pipe, 19s sd; Gordon and Gotch, £2 12s 7)d; 1.C.1. (prof.), £1 2s 7d (4). ' Breweries.—New Zealand, £2 0s Gd (2). Overseas Mining. Broken Hill South, £1 12s 7d; Electrolytic Zinc (ord,), £2 5s 6cl. £2 5s 4tl; Mount Morgan, 11s, 10s lid. DOLLAR AND FRANC Press Association—By Telegraph—Copyright LONDON, October 23. (Received October 29, at 11 a.m.) The dollar is quoted at 4.76 J. The franc is quoted at 173 3-4. SALE OF MAORI HILL PRDPERTY Messrs N. and E. S. Paterson Ltd. report, having sold by private treaty to Mrs Cox, on behalf of Mr J. A. Dunning, who is leaving for Australia, his freehold property, situated No. 10 Passmore Crescent, .Maori Hill, together with modern five-roomed bungalow and all iniprovemenis thereon. This property was to have been submitted to auction on Wednesday next.

N.Z. PROPOSALS

AUSTRALIAN BANKS UNEASY EXPERIENCE IN MELBOURNE A distinct feeling of uneasiness was apparent in Melbourne banking circles following upon the victory of the Labour Government in New Zealand, ■reports the Melbourne ‘ Age.’ Bankers in that city (who reflect the feeling prevalent in Australian banking circles generally) are rather concerned at the fact that almost the first words uttered by Mr Savage following his victory were to the effect that “ he would carry his banking policy to its logical conclusion.”

Several of the big Australian trading hanks have extensive assets in New Zealand fin the case of one hank amounting to nearly £10.000,000), and proposals such as the suggested taking over by the Government of the Bank of New Zealand, and the exercising of stricter control over the operations of the private banking system, would, if carried out. naturally sooner or later seriously affect those assets. The feelings of uneasiness regarding their future in New Zealand which have been aroused in Australian banking circles can therefore bo readily understood.

CANTERBURY MARKETS

TONE STILL QUIET LITTLE INTEREST IN POTATOES [Peb United Press Association.] CHRISTCHUECH, October 28. The rain which‘fell all over Canterbury this week was particularly welcome to farmers. The fairly long spell of fine weather and the warm' northwest winds had dried the ground up, and farmers were looking for rain for their wheat and other crops. Those, who had not planted their barley and peas had an excellent opportunity to get the job done. , Business in the grain markets has been no brighter than in the .last few weeks. ■> There has been some, small inquiry for B Carton oats and also for chaff , but. chaff is almost impossible to obtain'how. , Partridge peas for seed have also been in demand, but they, too. are hard to obtain. Moreover, this is just about the end of the season, and farmers who have not planted now will be almost too late.

Some inquiry has developed in the potato market for Suttons, but supplies of good ones are short. Plenty of Dakotas are still offering, but little interest is being taken in them. Some merchants have given up the potato market for the season, and there is little buying. It is reported that farmers are sending their potatoes to the North Island on consignment. On present indications the potato crop in Canterbury next season will not be as large as the present one. Reports of growers reducing their acreage come in.from day to day. One well-known farmer ' who nearly always has somewhere about 25 acres in potatoes will have three next season, and others have said that their acreages will be halved.

WORLD TRADE SURVEY

OPTIMISTIC VIEW TAKEN LEAGUE OF NATIONS BULLETIN The League of Nations ‘ World Economic Survey, 1937-38 ’ has been issued and collates a large amount of valuable material. The ‘ Survey ’ regards as crucial the question whether the Wall Street upswing, as illustrated' by the Dow-Jones Industrial Index, reflects the approach, of real economic recovery or is merely a mirage such as was seen in 1930.

In discussing trends revealed in the ‘Survey,’ the London ‘Financial Times ’ expresses the view that apart from the American situation rearmament is the most important factor governing the economic outlook. Economic calculations must always assume that the arms race is not going to end in Armageddon. Granted this, the immense arms programmes upon which all countries ' are engaged are likely _to have results similar to the clumsiest possible type of public works scheme. The contribution which they may make to the maintenance’of business activity has been greatly exaggerated. The ‘Survey’ expects little more from them than that they may prevent recession from going as far as it might-otherwise have done. We can certainly not look to them for economic—far less for political—salvation. But given a decisive business lead from the United States and some , measure of political appeasement in Europe, the world might quickly advance to new levels of material achievement. The new attitude towards monetary policy and public works which has developed since 1929 in almost every country has created a multitude of fresh problems, but on the whole it enables us to face the future with more confidence than would have been justified eight years ago. DOLLAR RATES. The Associated Bunks (other than tb» Bank.of New South Wales) quoted the fnl lowing dollar rates to-dav on » Neal Ze» land currency basis They are subject U alteration without mtice:— USA. CANADA (Her £1 N Z.) (Per £1 ,N Z , SF.I.UMrT.T. (dol) ... 3.78 15-16 ’ 3.81 13-16 O.D. (dol) ... 3.79 1-4 3.82 1-16 Hi 'i IMi O.D. (dol) ... 3.84 7-16 3.87 1-2

NEW YORK SHARE INDEX

DOW JONES AVERAGE

TIN RECOVERS

AT YEAR S HIGHEST LEVEL OTHER METALS STEADY TO EASY Preas Association —By Telegraph—Copyright LONDON, October 28. (Received October 29, at 1 p.m.) Following are to-day’s official (middle) quotations on the London metal market, as reported by the Australian Mines and Metal Association, compared with those of October 27; Oct. 27. Oct. 28.

PRICE OF GOLD Press Association —By Telegraph—Copyright LONDON, October 28. (Received October 29, at noon.)

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

MOUNT LYELL

PRODUCTION REACHES OBJECTIVE FIGURES FOR FINANCIAL YEAR Net profit to be announced by Mount Lyell Alining and Bailway Company Ltd. for the 12 mouths ended September 30 will reflect the lower average price that ruled for electrolytic copper. The average quotation during the period was £44 17s 5d a ton, compared with £OO 8s 3d in the preceding year, and £4O 14s 8d in, 1935.-36, Figures for the closing quarter of the year enable a complete computation of the production results for the financial year. to be made. There was a substantial increase of 190,701 tons, at 1,032,128 tons, in the ore treated by the mill, but production of blister copper, was down 107 tons, at 12,776 tons, compared with the previous year. Thus the objective of the company in dealing with 1,000,000 tons of ore a year has been attained and is being increased. The fact that the output of blister copper was below that of last year is due to handling of large quantities of low-grade ore. Production figures for the last two years are compared in the following table:— Year Fnded Svpt, 30. 1937. im Ore troat-’t. by mill 841,427 1,032,128 Concentrate' produced 51,303 53,170 North Mt. 1 veil ore smelted 7,787 7,445 Concentrates siucfted 51,303 • 51.744 Total ore. etc., smelted ... 59,092 59,183 Ulster cofi'er produced ... 12,883 12,700 Contents— Copper ... 12.792 12,570 Silver oz. ... 91.651 71.293 jold, oz 6,430, 7,619 Cathode coi-f er produced ... 13,516 12,407 ABERDEEN ANGUS BULLS SALE OF TWO-YEAR-OLDS [Per United Press Association.] GISBORNE, October 28. One hundred two-year-old Aberdeen Angus bulls were sold on behalf of H. B. Williams on Turihaua Station to-day. Twenty were withdrawn. The average price for the sale was a fraction undef 47 guineas, compared with the big figure of 65.) guineas last year and 51 guineas two years ago. An average of over 50 guineas was maintained during the first half of the sale,

but the remainder were disposed of at slightly lower prices. The highest figure was 95 guineas and the lowest 26 guineas, but until the dose of the sale few went below 40 guineas. Several Hawke’s Bay buyers operated.

Railroads. Industrials . Turnnrer, Oct. 28 32.13 151.07 1,560,000 OfL. it 31.94 lo2.09 2,U00,UU0 Oct. 26 31.58 152.40 1,700,000 Oct. 25 32.00 154.17 1,490.000 Oct 24 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. 19 50.71 150.02 2,450,000 Oct. 18 30.63 152.10 2,410,000 Oct. 17 30.33 i5o;si • 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. 3 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 Low Cat 28.01 113.64

Copper — £ s. a. jt 5- U Standard, spot 46 15 7J 46 11 104 Forward 46 19 4j 46 15 7£ Electrolytic , spot 53 5 0 52 15 0 Forward 53 10 0 53 10 0 v\u» bars— Spot ... ... 53 10 0 53 10 0 Spot 16 10 7i 16 10 0 Forward PpeMn — 16 13 1* 16 11 104 Spot 15 8 9 15 6 3 Forward .15 9 4J 15 8 li Tin— Spot 211 12 6 212 18 9 Forward , Silver — 212 12 6 213 12 6 Fine, per oz ... 19 5-8d 19 5-8d Standard, per oz 21 3-16d 21 3-l6d - Oct. 21 Oct. 28. Pie Iron ... 5 9 0 5 9 0 Antimony — British ... 70 10 0 / 70 10 0 Foreign 48 10 0 . 50 0 0 Molybdenite 2 3 0 2 3 0 Wolfram — Chinese ... ... .3 2 0 3 2 0

Fine gold is quoted at £7 5s 10£d an ounce. October 27 ... .. . £7 5 7 October 26 . 7 5 9 October 25 ... . . 7 5 11 October 24 ... . . 7 5 11 October 21 ... . . 7 6 2i October 20 ... . . 7 o 94 October 19 ... . . 7 5 84 October 18 ... . . 7 6 2 October 17 ... . . 7 6 6 October 13 ... . 7 6 94 October 7 ... ... . . 7 5 0 October 3 . 7 4 84 September 1 ... . .. 7 3 04 A<igust 2 ... . 7 1 8 July l ; 7 0 ■9- * June 1 , 7 0 74 May 2 .. 6 10 64 April 1 ... ... . . 7 7 04 March 1 ... ... . . 6 19 94 February 1 ... . . 6 19 7 January 3 ... . . 6 19 5