Commerce, Mining, Finance

Evening Star, Issue 23110, 9 November 1938, Page 8

Commerce, Mining, Finance

Brighter Trend in Base Metals Trustees Executors Interim Dividend Investment interest is at present centred on America, Where the result of yesterday’s Congressional elections will have an important reflection on the Stock Exchange. Influencing other financial centres to a major extent, the trend of the American market is a factor not to be discounted. Buying support was slightly better on the Dunedin market this morning, but business fell away. Generally the tone was steady, but isolated movements recorded were generally towards firmer levels. The Trustees Executors Agency Company of New Zealand Ltd. has declared an interim dividend of 3 per cent., against last year’s corresponding payment of 4 per cent, on scrip possessing a nominal value of £2, Healthy advances were recorded in the base metals market yesterday, all issues making way with the exception of* electrolytic copper and silver, which remained unchanged.

WOOL MARKET

AUCKLAND TO OPEN SEASON PROSPECTS FAIRLY GOOD CATALOGUE LIMIT, 24,000 BALES With the first sale of the season only three weeks away supplies of wool are already coming steadily into Auckland, and there is a fair amount of actmty in the Parnell stores. The sale which, as usual, marks the commencement ox the new wool season for the Dominion, is to commence at 9 a.m. on Saturday, November 26. , The quantities to hand so far, however, are scarcely as large as might have been expected, and the total in hand is not more tiian 8,000 to 9,000 bales. The limit of the catalogue xs 24,000 bales, and if this is reached as is expected, there is certain to be a big rush of deliveries within the next fortnight. Showery weather in the last week has interfered with shearing and transport, but the biggest factor in delaying the dispatch of the wool has been the backward condition of the ewes. For this reason shearing in the Waikato is only now becoming general. . The quality of the new clip is likely to suffer by comparison with, previous seasons, in consequence of unfavourable weather conditions and the effects of facial eczema. Much of the wool now coming into store is_ shorter in staple than usual, and inclined to be tender, This is particularly the case with hogget wool. Fortunately the market for wool in the chief world centres has taken a turn for the better in the last month, and it now appears likely that reasonable urices may rule. It mav be remembered' that the sale last year was particularly disappointing, fully 75 per cent, of the offering being passed unsold as a consequence of buyers’ low limits.

NORTHERN OILFIELDS DRILLING IN PROGRESS OPERATIONS AT HITITAI Drilling for oil in the Kaipara district, North Auckland, is being carried out at present by Northern Oilfields/ Limited, a newly-formed company with its head office in Auckland. Plant has been erected on the property of Messrs Montgomery Brothers at Mititai, about seven miles from Dargaville. Preliminary work in connection with the venture has occupied over three years, according to a statement issued by the company. A drill is now at work to test in a practical way the structures located and examined by the geologists and geophysicists during the preliminary stages. Investigation has continued and evidences of oil. gas and salt springs have been confirmed, while geological structures suitable to test for commercial oil have been located and lined up. A geophysical survey of the area to assist the geological work was undertaken by the Department of Scientifio and Industrial Research and a chart plotted showing the trend of its lisoanomaly lines are registered by a Schmidt vertical magnetic field balance.

The company’s license obtained under the Petroleum Act, 1937, covers _ an area of 200 square miles. This is a prospecting license with a currency of five years. At any time during this term mining licenses may be applied for within ijie area, but not exceeding 100 square miles, and these will have a currency of 42 years. Under the Petroleum Act the Government will collect a royalty from the license. With regard to the geological formation of the' area it is stated by the company that broadly they are of the same approximate age and character as those being tested in the Gisborne district, and those occurring in the southern Hawke’s Bay district. The main difference, however, lies in the fact that the oil source rocks in the northern area are much more accessible than in the other districts mentioned, or in Taranaki, where some thousands of feet of superimposed or younger rocks overlie, the structures, thereby necessitating much deeper boring. It is stated that a commercial oilfield in the North Auckland district will be less expensive to test and exploit, so far as geological and geographical evidence is a guide.

ANTWERP FUTURES Press Association—By Telegraph—CopyriehLONDON, November 8. (Received November 9, at 11 a.m.) Antwerp futures are steady. December, 23Jd; March, 23Jd; May, 23Sd. • DOLLAR AND FRANC Press Association—By Telegraph—Copynshi LONDON, November 8. (Received November 9, at 11 a.m.) The dollar is quoted at 4.76£. The franc is quoted at 178 11-16 s

INDUSTRIAL AMERICA SIGNS OF IMPROVEMENT COMMENT BY COMMONWEALTH BANK HESITATION IN AUSTRALIA'S INTERNAL AGTIVITY Economic conditions in the United States showed marked signs of improvement during August, according to the ' Commonwealth Bank's Statistical Bulletin ' for October. " Steel output is estimated to have reached 51 per cent, of capacity in the week ended October 15, the highest level since last October, largely on account of increased demand from public construction projects and from the automobile industry, in which assemblies are increasing rapidly," the bulletin states. "An interesting development is the marked improvement in construction activity. This is due mainly to a revival in residential contracts, which are .being stimulated by public housing projects. Commercial and industrial building has been in small volume during recent months." Economic conditions in the United Kingdom showed little change in August. An interesting development in recent months has been the comparative stability of the index of employment compared with other indexes of activity. The explanation of this diverr gence is not yet apparent.

The usual seasonal increase in new orders, to industry has not been evident in recent months. This is attributed to political uncertainty. Without an early revival in orders further decline;in industrial activity other than that connected with armaments must be expected. Conditions in the United States, however, show marked signs of improvement.

“ Although still at a high level, some hesitation is evident in internal activity,” the bulletin states, in referring to local conditions. “ value of manufacturing output in Now South Wales during July was generally somewhat lower than in July, 1937. Output in heavy metal and engineering industries, however, showed a marked increase. The general decline in value must be attributed partly at least to changes in prices, as unemployment in most fields of manufacturing showed some improvement. “ Preliminary figures for August suggest some improvement on August, 1937, although there is some evidence of decline in employment in industries producing durable goods. Purchases of plant in all groups, however, continue at a higher level than in 1937. “ Building activity, on the whole, is still continuing at a fairly steady rate in New South Wales, but signs of recession in the rate of city building have been evident for some time. The virtual completion of the immediate building programme of various large institutions, the uncertainties of the international situation, and doubts about future trends in constructional costs, have reduced the volume of city building. “ Suburban and factory building is carrying on satisfactorily, and there are some suggestions of shortage of skilled labour in suburban building. Sales of building material, other than that used principally for city building, are being maintained at the same level as in the corresponding period of the previous year. “ Railway earnings and freight carried continue to show improvement on the figures for last year. The fall in new registrations of motor vehicles was checked in August, but imports of chassis remained lower than in the corresponding month of 1937. The value of retail sales in New South Wales and Queensland remains above the 1937 level.”

ITALY'S COTTON STOCKS TWO YEAR'S STATISTICS MILL CONSUMPTION For the first time since the early months of 1936 the International Federation of Master Cotton Spinners' and Manufacturers' Association has received from Italy figures going back to January, 1936, for spindles consumption and stocks. Including th«se iigures the association estimates world cotton consumption during the year to July 31 last at 26,168,000 bales, as compared with 29,720,000 bales in the previous year; a decrease of 3,552,000 bales. Details

Italian mill consumption for the year is given as 320,094 bales, stocks being 167.425 bales. The total of stocks in mills on July 31 last in countries reporting was 5.177.000 bales. A year ago the amount was 167,000 bales less at 5,010,000 bales.

NEW YORK SHARE INDEX DOW JONES AVERAGE

3938. Highest 32.33 154.91 Lowest 19.00 98.95 1937. Highest 64.86 194.40 Lowest 28.01 113.64 METALS BRIGHTER ADVANCES BY ALL ISSUES ELECTROLYTIC COPPER SOLE EXCEPTION Press Association—By Telegraph—Copyright LONDON, November 8. (Received November 9, at 1.30 p.m.) Following are to-day’s official (middle) quotations on the Londo® metal market, as reported by the Australian Mines and Metal Association, compared with those of November 7: — Nov. 7. Nov. 8.

PRICE OF GOLD Press Association — By Telegraph—Copyngi LONDON, November 8. (Received November 9, at noon.) Fine gold is quoted at £7 5s Hid an ounce.

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

MINING HEWS

TALISMAN DUBBO NEW MILL OPERATES FURTHER FINANCE NEEDED. The annual report of Talisman Dubbo Gold Mines Limited (Karangahake) for the year ended December 31, 1937, states that 2,2392 tons of ore were treated at the Golden Dawn battery for a return of £17,657. There is a credit of £437 in the profit and loss account. VVith a credit of £3,603 in the previous year, £3,867 remains to be carried forward, after providing £172 for depreciation and reserve. After failure in prompt deliveries of plant, the new mill is now in operation. Preliminary adjustments, combined with initial difficulties, held up regular returns, which have not come up to expectations, although it is expected that these will improve from now on. Considerable expenditure has been entailed without adequate return. Development work has been restricted and expenses have been a heavy drain on the finances. An overdraft of £2,500 has been obtained, but further finance will be necessary.

REPORTS AND RETURNS

CENTRAL SHOTOVER The Central Sholover Gold Mining Company Ltd. reports a wash-up of 15oz 14dwt,

are appended: — Year to Julv 31, 1937. i938. Bales. Bales. American . 13,279,000 10,923,000 East Indian .. . 6,022,000 5,863,000 Egyptian . 1,273,000 1,188,000 Sundries . 9,146,000 8,194,000 lUal .. . 29,720,000 26,168,000

Nov. 7 Railroads. Industrials. Turnover. 32 04 154.91 1,760,000 Ncv. 5 31.78 152.12 450,000 Nov. 4 31.76 152.10 1,200,000 Nov. 3 32.56 152.31 1,070,000 Nov. 2 31.66 152.21 780.000 Nov. 1 31.50 151.39 1,280,000 Oct. 31 31.49 151.73 1.090.000 Oct. 29 31.89 151.38 610,000 Oct. 28 32.13 151.07 1,560,000 Oct. 27 31.94 152.09 2,000,000 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 30.99 151.62 1,620,000 Oct. 19 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 30.88 151.98 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

£ s. d. £ s. d. Copper— Standard, spot 45 16 104 46 3 9 Forward 46 1 104 46 8 14 Electrolytic, spot 51 15 0 51 15 0 Forward 52 15 0 52 15 0 Wire bars— Spot 52 15 0 52 15 0 Lead — Spot 15 19 4i 16 3 14 Forward 16 4 4i 16 6 104 Spelter— Spot 14 11 104 14 12 6 Forward 14 16 104 14 16 104 TinSpot 212 5 0 212 7 6 Forward 213 2 6 213 6 3 Silver— Fine, per oz ... 19 9-16d 19 9-16d Standard, per oz 21 l-8d 21 l-8d

November 7 ..£7 6 u November 4 .. 7 6 1 November 3 .. 7 6 14 November 2 .. 7 6 1 November 1 • •• • .. 7 6 34 October 31 • •• « .. 7 6 04 October 28 .. 7 5 10* October 21 ««• .. 7 6 24 October 13 • •• ... 7 6 94 October 7 ... .. 7 6 0 October 3 ... .. 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 19 64 April 1 .. 7 7 04 March 1 ... • •• .. 6 19 94 February 1 • •• ... 6 19 7 January 3 ... .. 6 19 5