Commerce, Mining, Finance

Evening Star, Issue 23124, 25 November 1938, Page 6

Commerce, Mining, Finance

London Funds Still Declining Gold Price Approaches Record Australian issues again commanded chief attention on the Stock Exchange this morning, a hesitant tone, which was reflected in some issues by a weakening movement, marking operations. New Zealand scrip continued lifeless. Buying support generally was slow, and vendors were in a substantial majority. Gold rose further in London yesterday to the year’s best point, £7 9s 2d. Unofficial dealings were made as high as £7 9s 84d, only 24d oft’ the highest unofficial record established in 1935. London funds continue to depreciate. This week’s figure of £5,029,137 compares with last week’s £5,662,976. Reserve to note and other demand liabilities stands at 33.723 per cent., as against 36.825 per cent.

RESERVE BANK RETURN STERLING EXCHANGE HOLDING RESERVE DOWN £633,839 LEVEL HOW £5.029,137 The Reserve Bank return for the week ended November 21, gazetted last evening, shows a further decline in sterling exchange holding. At £5,029,137, it is £633,839 below last week’s figure. The proportion of reserve to and other demand liabilities is 33.723 per cent, compared With 36.825 per cent, in the previous week. The figures at the close of the previous week are given with this week s return for of comparison, shillings and pence being omitted:

Proportion cf reserve (No. 7 lesr No. 5) to notes and othci ct'manj liabilities 36.825% 33.723% Sterling exchange is expressed in New Zealand currency. The movement of the sterling exchange held by the Reserve Bank has" been as follows since October 3 last:— £ October 8 10,594,978 October 10 9,960,235 October 17 9.U8.330 October 24 ... ••• ••• 8,313,576 October 31 7,707,697 November 7 ... 6,633.031 Neverr-r 14 5,662,976 November 21 ... 5,029,137 Since October 3 last the proportion of reserve to liabilities has shown the following movements; — 'October 3 ... 67.259 October 10 m - 57,903 October 17 •«. M ... 52.2/ October 24 ... ... ... m« ... ... 48.451 October 31 ••• 46.09 November 7 39.733 NovemN*? 14 36.H25 November 2] 33.723 DAIRY PRODUCTION DECLINE GOVERNMENT MUST FACE POSITION [Peb United Press Association.] WELLINGTON, November 24. ’ This season’s decline in dairy production and the seriousness of any continued falling off were referred to by Mr A. IR. Johnston, chairman of the Southland Executive of the Farmers’ Union, at the monthly meeting of the Dominion Executive to-day. The Government, Mr Johnston said, was beginning to realise the seriousness of the declining production. If this country was to weather any storm which might eventuate, production could not be allowed to fall, but under the present conditions it could not be maintained in volume.' Furthermore, its value was likely to decline also. To safeguard the country and the man on the land steps must be taken to arrest the contraction in the volume of production. Different provinces had _ discussed a land settlement policy with a view to settling youtm men. It was desirable to have such a scheme, but before bringing in more land the man already farming land must_ be protected. To safeguard the national position some unpalatable things would have to be lone. If the Government was willing to face the position the farmers would co-operate with it willingly. DOLLAR AND FRANC Press Association—By Telegraph—Copyright LONDON, November 24. (Received November 26, at 11 a in.) The dollar is quoted at 4.66|. The frauc is quoted at ITS 11-16.

THE DOMINION GUP VALUES SHOULD APPROXIMATE LAST SEASON'S [Per United Press Association.) AUCKLAND, November 25. The brokers expect a good clearance of the 24,000 bales to be offered at tomorrow’s wool sale, and at prices that may be similar to those ruling at the corresponding fixture a year ago. Among the buyers at to-morrow s sale will be Mr Herbert Hill, of Christr church, president of the New Zealand Wool Buyers’ Association, who returned by the Mariposa to-day from Britain and the Continent and the United States. He told an interviewer that, although slightly out of touch with conditions since he commenced the homeward journey, ho considered that the prospects for the Dominion clip this season were promising. He thought there was little likelihood of any extreme advances, but expected values to approximate those of last season. He said there were no notable reactions in Britain and other countries to the armament programmes, respecting the demand for wool. ‘ FRENCH BANK RATE REDUCED Press Association—By Telegraph—Copyright PARIS, November 24. (Received November 25, at 11 a.m.) The bank rate has been reduced from 3 to 2i per cent. AIRCRAFT CDMPANY DEBENTURES ISSUE OVERSUBSCRIBED LONDON, November 24. (Received November 25, at 10 a.m.) The Hawker Siddeley Aircraft Company’s issue of £3,500,000 4 per cent, first debentures, 1946, issued at £99, was oversubscribed. The lists closed a minute after opening. One of the objects of the issue is to provide further advances to operating companies to enable them to carry out the increased business expected from the Government’s aerial expansion. AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, November 24. The Stock Exchange continues to be jifeless, and industrials are inclined to drift, duo to lack of buying support. MORNING SALES.

NEW YORK SHARE INDEX DOW JONES AVERAGE

GOLD RISES AGAIN UNOFFICIAL DEALINGS AT £7 9/8i Press Association —By Telegraph—Copyright LONDON, November 24. (Received November 25, at 1 p.m.) Fine gold is quoted at £7 9s 2d an ounce.

Highest price in 1938, November 24, £7 9s 2dlowest price in 1938, January 3, £6 19s 6d. Highest price in 1937, March 6, £7 2s 7-Jd; average price in 1930, £4 5s an ounce. ALMOST A RECORD LONDON, November 24. (Received November 25, at 1 p.m.) There were unofficial dealings in gold in the afternoon at £7 9s B£d, which is almost the highest unofficial record, which was £7 9s lid in 1935. MINING NEWS REPORTS AND RETURNS MOSSY CREEK [Per United Press Association.) GREYMOUTH, November 24. The Mossy Creek Dredge return was 17oz 15dvvt from B,Booyds covered in 126 hours. ALEXANDRA MINES Alexandra Mines Ltd. has submitted tho following report for the week ended November 17: — No. 6 level: The early part of this week was spent opening up boulder of quartz which continued to lie fairly flat in an easterly direction. No. 1 cross-cut: Advanced a further 20ft, making a total distance of 43ft east of No. 6 level. The country has been hard and dry, except for a little water at 40ft in. No. 5 intermediate drive south: Advanced 10ft from south end of rise, the last sft being on quartz leaders, the widest being Gin. Stoping will now be commenced above this drive. Stoping has been carried on above No. 5 intermediate north of the rise. The width of the reef averages 2ft 9ln. The grade of ore is not as good as the north end of the block. There were 105 tons of ore sent to tho battery for the week. BIG RIVER Big River Gold Mines Limited has submitted tho following gold returns for tho period from October 1 to November 19:— Battery department: Three hundred and sixty tons of ore were crushed for 2060 z Idwt of melted gold. Cyanide department: No clean-up. Total estimated value: £1,390. 11l addition, four tons of concentrates wei;b saved, valued at £135. lit estimating the above values gold has been taken at 140 s per fine ounce. SYDNEY MARKETS Press Association—By Telegraph—Copyright SYDNEY, November 24. The wheat market is dull, but remains well above export parity. Silo grain is quoted at 2s 61d, bagged 2s Sd. Flour, £7 10s. Bran and pollard, £5. Potatoes: Tasmanian £l3, others £7 to £ll Onion;, Grown. do; white. £l3. Maize; Yellow, 4s 8d; white, 4s 6d.

COMPANY NEWS KAURI TIMBER PROSPECTS OF NEW BUSINESS MANUFACTURE OF BUTTER BOXES As tlio demand, for plywoods and panelling was steadily increasing, it was expected that the business of Commercial Boxes and Plywoods Pty. Ltd., which had been purchased last July, would prove profitable, said the chairman of the Kauri Timber' Company Ltd. (Mr John Bishop), at the annual meeting of shareholders. The effect on the profit and loss account of the new business was comparatively small, because the purchase had been completed late in the company’s financial year. “ The boxmaking side of this business,” Mr Bishop continued, “ is to a largo .extent seasonal, as the greater portion of its production is in export butter-boxes. The dry season has caused a falling-off in the yield of butter, and results arc not as good as could be wished. However, provided wo have sufficient rains for pastoral purposes, the season, instead of ending in early January, may bo prolonged until the end of February, in which case an additional supply of boxes would be required.” The drying kilns, Mr Bishop added, were working to capacity. The company had recently installed a Ross carrier—a machine capable of picking up and transporting approximately 4,500 ft of timber in one operation. QUEENSLAND INSURANCE DIVIDEND OF 91 PER GENT. Queensland Insurance Company Ltd. showed a iprofit of £150,506 for the year ended September 30, compared with £131,948 the previous year. Dividend is 9J per cent. (4J interim and 5 final), and requires £71,250. The previous year’s dividend was ,8J per cent. A sum of £50,000 is transferred to nnexpired risks reserve, making it £415,000, and £25,000 to reserve fund, making it £375,000. With £42,987 brought forward, £47,2-13 is carried forward. FRUIT AND PRODUCE WEATHER AFFECTS SALES SHORTER STRAWBERRY SEASON Reilly’s report that the unseasonable weather at the beginning of the week adversely affected sales, but the demand has 'now improved, and fair supplies of fruit are arriving. Values for good quality dessert apples are higher, and supplies are wanted. A small shipment of Canadian apples came to hand during the week, and a larger shipment arrived by the Waimarino to-day. Fair supplies of Christchurch and local hothouse tomatoes are arriving, and values are keeping firm. Increased supplies of sta - awberries and cherries have been coming to hand. At the beginning of the week values were low, but have now firmed, with a better inquiry. It is apparent that crops of strawberries this season will be much below that of previous years. Ample supplies of oranges arc available for the demand, a further shipment being due by the Mauugamii next Tuesday. Ripe bananas have a better inquiry. Nines and Samoans ex the Maui Pomare arrived in prime green condition, and met with a good inquiry. The next shipment by this vessel is due to arrive on December 13, iii time for the Christmas trade. There is a much better inquiry for New Zealand-grown lemons, and values have firmed. With the exception of cauliflowers, other lines of vegetables have been in over-supply, and cabbages and lettuces in particular must show growers unremunerative returns. Small consignments of asparagus continue to arrive, and values are slightly higher than those prevailing last week. Gooseberries are in fair supply with a satisfactory inquiry. Consignments of new potatoes are increasing, and values remain fairly steady. Green peas are in short supply, and values are firm. There is still a limited inquiry for old potatoes. Eggs.—Values remain firm at Is 3d for guaranteed, with a good inquiry. Poultry.—There was only a small penning of birds for the weekly sale, with a satisfactory inquiry. UNITED STARR-BOWKETT BALLOT AND SALE A meeting of members of the United Starr-Bowkett Building Society was held in the secretary’s office! last evening to dispose of £3,300 by ballot and safe in various groups. A ballot was held for the 136th appropriation in No. 5 group, and cluster No. 7 was drawn, held by one shareholder. The 137th appropriation in No. 5 group was a sale at £SOO, hut there being no buyers, a ballot was held, cluster No. 27 being drawn, held by one shareholder. A further ballot, being the 138th appropriation in No. 5 group, was then held, and cluster No. 29 was drawn, held by one shareholder. A ballot was then held for the eightysixth appropriation in No. 8 group, which resulted in cluster No. 49 being drawn, hold by one shareholder. The eighty-seventh appropriation in No. 8 group was a sale of £SOO, the loan being sold to one shareholder. A ballot was then held for the fortyfifth appropriation in No. 10 group, cluster No. 50 being drawn, held by two shareholders. ASSOCIATED NEWSPAPERS 7 PER GENT. DIVIDEND FOR YEAR Press Association—By Telegraph—Copyright SYDNEY, November 24. Associated Newspapers Ltd., Sydney, report that the net profit for the year from the ‘ Sun ’ and other publications amounted to £242,000, which is slightly more than last year, despite the higher operating costs. A final dividend of 3 per cent., making 7 per cent, for the year, will be paid shortly.

LIABILITIES. Last week. This week. £ 1. General Reserve bund 3. Bank notes 1,500,000 14,421,253 1,590,000 14,496,272 3. Demand liabilities — (a) Slate (b> Banks (c) Oiler .. ••• ••• 4. Tima Deposits 2,592,542 4,803.459 1,003,184 2,228,333 5,546,481 884,574 — 5. Liabilities iii currencies other than New Zea20,485 21,949 6. Othe Labilities 162,030 164,094 Toul ... £24,012,954 £24,841.704 ASSETS. 7. Reserve— 2.801,791 2,801,791 (&) Sterling exchange ... 5,002,976 6,029,137 (c) Cold exchange 8. Subsidiary coin 216,425 209,512 3. Discount*— (a) Commercial and agricultural Mils — — (b' Treasu»y and local body bills *— 10. Advances— (a) To State or Slat* undertakings (1) PHman pro ducts Market4,499,033 ing Department 4,008,564 (3) For other pur8,500,000 poses 8.300,000 (b) Jo other public authorities — — — 11, Investments . 3,482.064 3,500,870 12. Bank bi iliings — — 13. Other assets 81,131 101,359 Total £24.012,954 £24,841,704

£ s. d. Commonwealth Bonds— 4 p.c., 1938 101 15 0 4 p.c., 1941 100 11 3 4 p.m., 1944 101 2 6 4 p.c., 1950 102 5 0 4 p.c., 1959 102 5 0 4 p.c., 1961 Commercial Bank of Sydney 102 6 3 20 12 0 Tooheys 1 10 9 Anthony Hordern 0 16 U Broken Hill Proprietary ... 2 IT 3 Burns, Philp Colonial Sugar 2 11 3 48 0 0 Electrolytic Zinc 2 6 0 General Industries 0 18 44 AFTERNOON SALES. Bank of New South Wales 30 5 0 Commercial Bank of Sydney 20 11 0 Bank of Adelaide 6 0 0 Colonial Sugar 48 0 0 Associated Newspapers 1 0 9 Associated Newspapers (pref.) 1 2 n Adelaide Steam 1 13 6 Burns, Philp 2 11 3 Burns, Philp (South Sea) British Tobacco 1 8 0 2 8 0 Aust. Iron and Steel (prcf.) 1 8 4* Australian Glass 5 0 0 Kaudos 1 G 10 Mort’s Dock 0 12 3 Adams 0 15 3 Cash Orders Amalgamated (New Zealand delivery) 0 15 6 Newbold Brick 1 9 9 Goldsbrough, .VIort 1 8 9 Wool worths Ltd 1 0 10 Woolworths Ltd. (first prcf.) 2 2 0 Mount Morgan 0 9 1 Mount Lyell 1 9 0 Loloma ... 1 3 0 Taranaki Oil 0 12 0 MELBOURNE, November 24. Industrials are still quiet. Commonwealth loans arc firmer, Barriers steady, and Fijian gold shares weaker. £ s. d. Comm. Bank of Australia 0 16 2 Huddart, Parker 2 11 0 Drug Houses 1 3 0 Australian Glass 5 0 0 Dunlop Perdriau 1 0 6 Dunlop, Perdriau (pref.) 1 18 3 Felt and Textiles 1 11 9 Goldsbrough, Mort 1 8 7 ‘ Herald and Times ’ 2 17 0 National Reliance Investment Trust 0 9 6 Broken Hill Proprietary ... 2 17 0 Norths 2 9 3 Souths 1 10 2 Emperor 1 3 0 Loloma .... ... 1 3 0

Railroads. Industrials , Turnover Nov. 23 30.42 149.88 1.600,000 Nov. 22 30.53 149.56 880.000 Nov. 21 30.77 150.26 940,000 Nov. 19 30.94 150.38 440,000 Nov. 18 30. BO 149.93 1,420.000 Nov. IV 31.75 152.78 930,000 Nov. ib 31.20 151.54 1,790,000 Nov. 15 31.95 154.66 1,470,000 Nov. 14 32.36 155.61 1,650,000 Nov. 12 33.17 158.42 1,010.000 Nov. 10 33.17 157.48 2,180,000 Nov. 9 33.12 158.03 3,100,000 Nov. 7 32.04 154.91 1,760.000 Nov, 5 31.78 152.12 430,000 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 1838. Highest 64.89 194.40 Lowest 28.01 113.64 1937. Highest 33.17 158.42 Lowest 19.00 98.95

November 22 ... ... £7 8 9 November 21 ... ... 7 7 in November 19 ... ... 7 7 7 November 18 ... ... 7 7 10 November 17 ... ... 7 8 1 November 15 ... ... 7 8 3 November 14 ... ... 7 6 8 November 7 ... ... 7 6 14 November 1 ... 7 6 34 October 31 ... 7 6 04 October 28 ... 7 6 104 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 I 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