Commerce, Mining, Finance

Evening Star, Issue 23270, 19 May 1939, Page 6

Commerce, Mining, Finance

London Funds Slightly Lower

Wilson's Cement Maintains Dividend Rate

B.H.P. to Engage in Tinplate Industry

r Overseas markets are more settled. London is quiet, but the gilt-edged section displayed a slight advance. New York recovered fractional ground on a fair turnover. Selected New Zealand issues captured attention on the Dunedin Exchange this morning, when buying support improved appreciably for several lines. Business was better. London funds held by the Reserve Bank during the ended last Monday totalled £4,695,194, a decrease of £13,511 on the previous period. The reserve ratio declined to .499 per cent, above the statutory minimum. Wilson’s (N.Z.) Cement has declared a final dividend of 4Jd a share, making an unchanged distribution for the year . of 7i per cent. Broken Hill Proprietary Limited, veteran leader of Commonwealth industry, is to engage in the tinplate industry. Capital amounting to £4,000,000 will be involved. No official statement concerning the provision of capital, or other details, has yet been made.

RESERVE BANK RETURN MTID AT LOW LEVEL STERLING FUNDS DIWN AGAIN INCREASE Nl STATE DEPOSITS ' 1 Movements in the weekly statement of assets and liabilities of the Reserve Bank of New Zealand, as at the close of business on Monday, May 15, show sterling exchange in New Zealand currency now at £4,695,194, against £4,708,705 in the previous period. FEATURES IN RETURN. Sterling exchange has dropped again by £13,511. Reserve ratio has lost further ground, dropping from 25.722 per cent, to 25.499, or only .499 per cent, off the statutory minimum. .. . Advances- ..to the Market in (-.'Department have r risen by £179,937, but 'advances " for other-purposes ” remain unchanged. State deposits are larger by £219,232. Note circulation displays a slight contraction. The figures at the close of the previous week are given with this week’s returns for purposes of comparison, shilling and pouce being omitted:— LIABILITIES. Last Week. This Week. £ £ 1. General Reserve Fund 1,500,000 1,500,000 *. Bank notes ... 15,698,366 . 15,640,169 5. Demand liabilities—(a) State ... 2,795.242 3,011,474 (b) Banks ... 10,394,089 10,464,058 (c) Other ... 119,495 97,621 4. Time deposits 5. Liabilities in currencies other than New Zealand currency 49,229 48,032 6. Other liabilities 576,925 580,330 Total ... £31,133,348 £51,341,683 ASSETS. ‘ 7. Reserve—(a) Gold 2,801,839 2,801,839 (b) Sterling exchanges ... 4,708,705 4,595,194 (cl Gold exchange 8. Subsidiary coin 226,080 223,711 9. Discounts — (a) Commercial and, agricultural bills - - (bl Treasury and local body bills 10. Advances—(a) To State or State undertakings— (l) Primary Products Marketing Depart- i ment ... 7,325,620 7,505,557 (2) For other purposes ... 12,175,000 12,175,000 '(bl , To other public authorities - (c) Other H. Investments ... 3,770,789 3,770,789 12. Bank building* -• 13. Other assets ... 125,313 169,593 Total ... 31,133,348 £31,341,683 Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities 25.722 p.c. 25.499 p.c. Sterling exchange is expressed in New Zealand currency. TREND OF MOVEMENTS, The movement of the sterling exchange held by the Reserve Bank of New Zealand during recent months and of the ratio percentage of reserve to notes and othei demand liabilities are shown in the follow-

BROKEN HILL PROPRIETARY AGAIN

INTERESTED IN TINPLATE INDUSTRY CAPITAL OF £4,000,000 INVOLVED BIG MOVES RUMOURED. BUT NO OFFICIAL STATEMENTS Capital amounting to approximately £4,000,000 will be involved in the new tinplate industry which it is'proposed to established at Iron Knob, South Australia, by the veteran leader 6f Commonwealth industry, the Broken Hill Proprietary Company Ltd. Negotiations are not yet completed, but it is understood that B.H.P. will undertake the new venture without assistance from the Federal Government. The establishment of the industry is at present the subject of consultation between the British and Australian Governments and the Broken Hill Proprietary Company Ltd. Final details have not been settled, but it has been authoritatively stated that there is little likelihood of a hitch. The British Government has a real interest in the proposed new industry, because present imports of tinplate to Australia are valued at £2.500,000 annually. The new industry is regarded as being highly important from a defence aspect. TWO YEARS YET AT LEAST. It is expected that the industry cannot be completely established within two years, but it is believed that the project can be brought into full operation about the end of 1941. It is understood that an assurance will be given by the company that consumers of tinplate will be charged prices not higher than those charged for the imported product over the past three years; in fact, it is claimed that, Australian consumers of tinplate will actually obtain an advantage in view of the company’s declared policy of charging less for its Australian-made steel products than the price for imported goods, less duty. HINT OF NEW ISSUE. The market for the shares has been very strong and active during the last few days, and the possibility of a new share issue being made to finance the company’s latest plans for expansion has been freely discussed. It is not thought likelyJ however, that if the company decides to seek new capital from the market any announcement will be made for some time._ Two years ago Broken Hill Proprietary made a new capital issue of 1,740,123 shares of £1 each at £llos a share. This new capital was used to finance Australian Iron and Steel Limited to enable extensions to take place at Port Kembla. B.H.P. INVESTIGATION IN 1933. B.H.P. first announced its intention of interesting itself in establishing the tinplate industry in Australia in 1933, but owing to the attention of directors being engaged in other phases of development of the iron and steel industry within the Commonwealth they were unable to make much progress towards having the industry commenced there. In addition the hot-volled strip mills and cold-reducing mills erected in the United States and Great Britain had such an enormous output that it was considered by the Broken Hill Proprietary Company that the installation of these plants in Australia would not bo economical. However, the whole position has been changed in the past year owing to the grave international developments and the consequent paramount importance of Australia becoming as self-sufficient as possible in the quickest time. This has caused plans for the establishment of the industry to be expedited, as it will be of definite defence, as well as economic, value to the Commonwealth.

STOCK MARKETS QUIET RISE IN GILT-EDGED SECURITIES Press Association—By Telegraph—Copyright LONDON, May 18. (Received May 19, at 10 a.m.) The stock markets «re quiet. Giltedged securities rose a further eighth all round.

P.O. SAVINGS BANK

POSITION FDR FINANCIAL YEAR EXCESS OF WITHDRAWALS Deposits with the Post Office Savings Bank during March amounted to £2.557,545, and withdrawals to £3,076,830, an excess of withdrawals of £519,285. For the financial year ended on March 31, 1939, deposits totalled £30,434,291, and withdrawals £34,597,709, an excess of withdrawals of £4,163,418. Comparative figures for 1937-38 were: Deposits, £33,041.082; withdrawals, £29,629,074; excess of deposits £3,412,008, Statistics of savings bank (Post Office and trustee) deposits and withdrawals for the last three financial years are as follows: Excess of Vear. Deposits.’ Withdrawals. Deposits 1936- ... ... 38,32UH2 34.275L520 4,041,792 1937- 41,178,553 37.267,894 3,910,659 1938- ... ... 39,012,359 43,028,176 4,015,817* * Excess of withdrawals over deposits.

COMPANY NEWS G. J. COLES EXPANDING G. J. Col os and Co. Ltd. have bought Commerce House, Adelaide street, Brisbane, headquarters of the Chamber of Commerce. The price is believed to be nearly £50,000. The building has a frontage of 57ft to a depth of 148Jfb. Coles occupy portion of the ground floor. Many of the tenants have leases, while others are protected for at least a year. It is understood, however, that when present leases expire, Coles propose to occupy the whole of the building in order to cope with their expanding business in the northern city. The company now has over 80 stores throughout Australia. WILSONS CEMENT UNCHANGED FINAL DIVIDEND Wilsons (New Zealand) Portland Cement Ltd. has advised the Stock Exchange Association that at the annual meeting on June 21 the directors will recommend payment of a final dividend for the year ended March 31 of 4Jd a share. Transfer books will close from June 8 to 21, both days inclusive. . A similar dividend was paid in December. The distribution for the year is thus 9d a share, or per cent., an unchanged rate. HIGH PROFITS CONCERN IN AUSTRALIA The question of a specific method of taxing nigh company profits was under consideration, said the Commonwealth Treasurer in the Legislative Assembly last week. He was replying to a question as to whether General Motors— Holdens Ltd.—had made profits yielding dividend at 55 per cent._ “ Where profits are extortionate and come within the fiscal policy of the Government, inquiries should be made as to whether such profits should be continued in the future,” added the Treasurer. SYDNEY MARKETS Press Association—By Telegraph—Copyright SYDNEY, May 18. The wheat market is steady, but buyers are not greatly interested. Silo grain is quoted at 2s 7}d and bagged at 2s 9d. Flour, £l2 10s. Onions.—New Zealand brown, £27. Maize.—Yellow, 4s 3d; white, 4s 4d.

ing table:— Sent. 5 ... Sterling exchange £ (N.Z.) 12.639,000 Reserve ratio per cent. 65.847 Oct. 3 ... 10,594,978 57.259 Oct. 31 ... 7,707,697 46.09 Nov. 7 ... 6,633,031 59.733 Nov. 14 ... 5.662,977 36.825 Nov. 21 .. 5,029,137 33.723 , Nov. 28 ... 4,828.302 32.685 Dec. 5 ... • •• 4,200,856 29.834 Dec. 12 ... 4.572,031 30.333 Dec. 19 ... • •• 4.356,095 28.109 Dec. 26 ... 4,678,233 27.882 Jan. 2 ... 4,017,232 26.13 Jan. 9 .. 3,933,851 25.526 Jan. 16 ... 4,373,105 26.782 Jan. 23 .. 4,395,525 26.695 Jan. 30 ... • •• 4,133,586 25.75 Feb. 6 ... 4,074.954 25.047 Feb. 13 .. 4,164,499 25.073 Feb. 20 .„ 4.523,030 25.378 Feb. 27 ... 4,839,555 25.799 Mar. 6 .... 4,705,897 25.017 Mar. 13 ... 4,591,685 25.026 Mar. 20 ... 4,547,863 25.129 Mar. 27 ... 4,659,874 25.419 A nl . 3 ... 4,663.309 25.924 Apl. 10 ... 4,598,651 25.501 Apl. 17 ... 4,872,817 29.305 Ant 24 ... 4,659,061 25.11 May 1 ... 4,817,992 28.815 May 8 ... 4,708,705 25.72? May 15 ... 4,695,194 25.499 The statutory minimum of the reserve is 25 per cent