Investment Market To-day

Evening Star, Issue 23292, 14 June 1939, Page 6

Investment Market To-day

Australian Loan at Discount

National Bank of N.Z. Maintains Earnings J blMeOrt a lifeless tone yesterday. Better • attention was accorded selected Dominion industrials on the Dunedin - Exchange to-day, but price movements over the whole list were within confined limits, and business was poor, Five days after the subscription lists had closed, the Australian loan was quoted in London yesterday at a£l 15s discount. Eighty : per cent, of the issue was left with the underwriters. Net profit of £106,525, against £105,725 last year, is reported by the National Bank of New Zealand Ltd, for the year ended March ; 31. Net earnings on capital represent 53 per cent, while dividend totals 5 per cent.

PROTECTING THE INVESTOR STOCK EXCHANGE REGULATIONS RECENT CHANCES COMMENDED An editorial in the current issue of the New Zealand ‘ Accountants’ Journal ’ commends the action recently taken by the Christchurch Stock Exchange coneming the keeping by members of adequate accounting records and the. provision, if deemed necessary by the' committee, of a certificate of audit and report from a practising pub-, lie accountant. “ Quite apart from, the fact that a measure of responsibility is cast upon members of our society in giving effect to the new rules, we, as advisers and custodians of the public welfare in matters of finance, are vitally interested in any steps which are taken to protect and safeguard capital invests ments,” states the ‘ Accountants’ Journal.’ ' “ For this reason our readers will no doubt bear with us if we emphasise the more important alterations and additions to the rules of the Christchurch Exchange in respect to accounts and audit. Although we have no warrant for expressing such a view, we consider that the lead given by sharebrokers in the Qathedral City will be followed by their colleagues m the other main centres of the Dominion. “The chief provisions give the committee, of the exchange power to call upon any member at any time to produce for inspection, books;. and other documents relating to his business as a sharebroker. “ Wide powers are given to the committee of the exchange if it has reason to suspect that all is not well with a member. For instance, the committee has full and absolute authority at any time to call upon a member to produce forthwith for inspection by themselves or their duly appointed representatives all books, letters, telegrams, or copies thereof, and other documents, relating to the business of a sharebroker; and it may also‘require members and their clerics to appear before the committee nr its representatives to give such information as may be required. “ In these days of unrest and uncertainly capital is an even more timid and shy ‘ bird ’ than in normal times, so that any movement designed to engender a greater degree of confidence bn the part of the investing public is to be welcomed. - It is desirable that in matters of more stringent control the Stock Exchanges themselves should discipline members rather than have regulations promulgated by the State. “ We are confident that the measures introduced by the Christchurch Stock Exchange will be appreciated by investors and that this raising of the standards of professional practice will meet with the merit it deserves.’’ LEMON SHORTAGE OVERCOME [Pbb United Press Association'.) CHRISTCHURCH, June 13. The view that the lemon shortage had now been overcome and that there would be little difficulty in. keeping the market supplied in future was expressed in an interview by the Director of Internal Marketing (Mr F. R. Picot). “ It is gratifying to see that the recent shortage has been overcome mainly by the importation of several shipments from Australia,”, said'Mr Picot. “In addition,' supplies are coming forward from the packing and. curingTiouses in Tauranga, Auckland, and Keri Keri, and are increasing daily. It is anticipated that as a result of these factors there, will be no difficulty in keeping the market adequately supplied.” SHEEPSKIN MARKET COMPETITION FAIRLY KEEN There was a good selection offered at yesterday’s sheepskin auction to the usual representative attendance of buyers. Competition was fairly keen and, as obmpared with late rates, rvalues for all sound-pelted parcels were fully firm, while faulty and shabby sorts sold in buyers’ favour. Half-breds sold to 9d, fine'cross-breds and cross-breds to 9d, half-bred and cross-bred hoggets to Bd, and half-bred and cross-bred lambs to 7Jd. " The official range of prices was as follows; —Fine half-bred: Full-wool, B|d to 9d per lb.’ Half-bred: Full-wool, to 83d; J-wopl; Bid to B|d; j-wpbl, 6Jd to 7ld; 3-wool, 5Jd to s|dl‘ . Fine cross-bred: ; Full-wool,‘B3d to 9d; 3wool, BJd to 9d; 3-wool, 7d to 73d; J-wool, SJd to 53d. Cross-bred: Fullwool, B|d to 9d; , l-wool, 8d to 83d; i-woot, 6|d to 73d; i-wool, 4|d to 6Jcl. Hoggets: Half-bred, 7Jd to 8d;, fine cross-bred, 7|d to. 8d; cross-bred, to 7Jd. Lambs: Half-bred, 7Jd to 73d; fine cross-bred, 7Jd to 73d; cross-bred. 7Jd to 73d. First pelts, 3Jd to 43d. Pelts, 2Jd to 3|d. ANTWERP FUTURES Prcaa Association—By Telegraph—Copyright LONDON. June 13. (Received June 14, at 11 a.m.) Antwerp futures are steady. July, 203 d; October, 313dj December 213 d.

EXCHANGE CONTROL EFFECT OF BORROWING FROM RESERVE BANK ECONOMIC SURVEY MOVEMENTS IN STERLING FUNDS “ As the facts of the situation which has led to exchange control have become more familiar, it has become more obvious that present monetary difficulties are the direct result of the Government’s borrowing from the Reserve Bank, and that these difficulties will not be overcome till the Government’s advances from that bank are repaid,” states the June bulletin of the Canterbury Chamber of Commerce, which is prepared in consultation with the department of economics of Canterbury University College, in dealing with hanking in New Zealand. “ The heavy advances made to the Government in the latter half of 1938 have placed the Reserve Bank in an extraordinary and difficult position, says the report. Pointing out that the chief function of a Reserve Bank is to hold the ultimate reserves of a country’s monetary system, and to use those reserves to maintain the liquidity of currency and credit under its jurisdiction, the report states .that on April 24, 1939, the reserve ratio of the bank was 25.1 per cent. (June 9 it was 29.655 per cent,). As the bank s legal minimum is 25 per cent., the effective working reserve was .1 per cent, of the bank’s demand liabilities. By comparison the liquid assets or the trading banks on the same date (April 24), were 49.8 per cent, of their demand liabilities. “ This comparison . shows that the trading banks, operating Under private enterprise, have retained their highly liquid position; : or perhaps it should be said that they have retained that position so far. as it lies within their power, and their assets would be highly liquid if the Reserve Bank were able immediately to provide sterling funds in exchange for its notes and deposits,” says the report. “ But the Reserve Bank, operating under GovernInent control, has failed to keep its assets liquid and has had an unduly large proportion of them frozen m advances to the Government. POLITICAL INTERFERENCE. “The p°sition that has arisen demonstrates the validity of the prerequisite for successful reserve banking laid down by Sir Otto Niemeyer that the Reserve Bank ‘ must be entirely free from both the actual fact and fear of political interference.’ ’ The report adds:, “There is evidence in the banking figures, too, that the official control exercised over overseas funds and imports during the first quarter of this year has been far from completely effective. In the_four, months, December to. April, 1936-3/, the period: during which exports are large and overseas funds usually increase, these funds were augmented by £8,500,000. In the same period in 193738, the increase was £5,000.000. while for the same months in 1938-39 the increase in overseas 1 funds was only £2,200,000. Under exchange control the increase in overseas funds has so far been decidedly less than it was in similar periods when no control existed.” . Dealing with imports, the report Eoints out that substantial, declines ave been recorded over a wide range of goods, but considerable increases also occurred, many of which appeared .to result from the Government’s housing and public works, expenditure. The chief increases were in rail and tram plant, timber and iron and steel for building, electrical goods, dredging and excavating machinery, newsprint, motor tyres, and arms and explosives. ONION IMPORTS TO BE CONTROLLED BY MARKETING DEPARTMENT [Pm Ukitbd Press Association.) CHRISTCHURCH, June 13. - All onion importations to the Dominion this year are to be controlled by the Internal Marketing Division and the distribution made through _ the agencies formerly used, said the Director of Internal Marketing (Mr F. R. Picot) to-day. “ The division is this year makingarrangements to handle all importations,” Mr Picot said. “ Supplies from overseas will not, however, be brought into the country until such time as the stocks of New Zealand-grotfvn onions are practically exhausted. In the handling of the onion trade the division is closely associated with the Onion Advisory Committee, which is advising on supplies, stocks on hand, and distribution in order that the interests of our local growers can be safeguarded.” CLUTHA AND MOLYNEUX SHARES Press Association —By Telegraph—Copyright LONDON, June 13. (Received June 14, at 1 p.m.) Share quotations: Clutha River Company—buyers Is, sellers Is 6d; Molyneux River Company—buyers 3d, sellers 43d,

NEW YORK SHARE MARKET DOW JONES AVERAGES '-Base.' 1926=5100.-

1938. Highest. Lowest. Industrials 158.41 (Nov. 12) 98.95 (Mar. 31) Railroads ~ 33.98 (Dec. 31) 19.00 (Mar. 31) METAL MARKET fress Association—By Telegraph—Copyright LONDON, June 13. (Received June 14, at 1 p.m.) following are the latest official (middle) quotations on tho London metal market, as reported by tho Australian Mines and Metal Association, compared with those of

YIELD FROM SALES TAX NEW RECORD FOR AN APRIL MONTH HIGH LEVEL OF RECEIPTS FOR YEAR Although the amount of sales tax collected during April, £310,957, showed a decrease of £4,110 on .‘the total for March, it- established, a record for an April month. It is £18,316 above the figure for April of the previous year. Receipts from this tax have been running at high levels this year, the amount for the four months to April, £1,210,082, being £91,988, or 8.2 per cent., above the total for the corresponding period of 1938, and £129,308, or 12 per cent., .above the figure for the same period of 1937. ICE CREAM TRADE EFFECT OF ADVERSE WEATHER A net profit of £lB9, against £3,587 in 1938 and £2,489 in 1937, is shown in the accounts of Peters Ice Cream Company (N.Z.) Ltd for the year ended April 30. With £3,772 brought in, there .is £3,961 available. The dividend proposed for the year is reduced to 5 per cent, from 10. per cent, distributed in 1937 and 1938.. This requires £1,250, leaving £2,711 to be carried forward. . , The directors report that unfavourable weather was largely responsible for the lower profit. Many alterations and additions had been made at the factory to meet changing conditions, and much of the expenditure had been paid out of revenue. The directors were confident that the reorganisation carried out by the new manager, Mr J. Rison, would bring successful results. SYDNEY WOOL SALES Press Association—By Telegraph,—Copyright SYDNEY, June 13. At the wool sales 9,234 bales were offered and 8,360 sold, while 3,176 were disposed of privately. Continental buyers were particularly active, especially Germany, Franco,and Belgium, while Yorkshire and Japan, gave moderate support. All spinners’ wools ruled fully 5 per cent, above _last_ week’s levels, while average and inferior sorts sold in sellers’ favour. Greasy merino made 16Jd.

FRENCH FRANC Press Association—By Telegraph—Copyright LONDON, June 13. (Received June 14, at 1 p.m.) Sterling exchange on Paris, 176| francs to £l.

NATIONAL BANK OF N.Z. PROFIT £798 UP AT £108,525 RATIO OH CAPITAL 5.3 PER CENT. LARGER ALLOCATIONS TO DIVIDEND PAYMENTS (Pen United Press Association.!

WELLINGTON, June 13. Cabled advice has been received from London by the general manager of the National Bank of New Zealand Ltd. that the not profit for the year ended March 31, after appropriations to the contingency accounts, out of which accounts full provision has been made for bad and doubtful debts, exchange, national defence contribution, and other contingencies, amounts to £106,525. To this amount there has to be added £113,691 brought forward from the previous year, making an available total of £220,215. , The interim dividend at the. rate or 5 per cent, per annum, less the United Kingdom income tax paid in January last, absorbed £41,042; There has been transferred to the Premises Account £IO,OOO, and to the Pension and Gratuity Funds £14,000, leaving £160,173 available for distribution. The directors propose to allocate this amount as follows; — ■£ ' In the payment of a dividend at the rate of 5 per cent, per annum (less United Kingdom income tax at 3s ,7d in the £) for the halfyear ended March 31. 1939 41,042 Balance to he carried forward - - 114,131 Total £220.215 The final dividend is equivalent to £5 Is 8d per cent., New Zealand currency. balance sheet items. Results over the past three years

AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, June 13. The Stock Exchange was fairly steady to-day, despite the fact that the trend in overseas markets was not encourag-

PRICE OF GOLD Press Association—By Telegraph—Copyright LONDON, June 13. (Received June 14, at 1 p.m.) Fine gold is quoted at £7 8s 4d an ounce.

During the European crisis at the end of September, 1938 the price reached £7 7s (September 28) On. January 4, 1939, a record price of £7 10s 5d was made. During February the price varied from £7 8s (February 1) to £7 8s 2d (February 27). Highest price in 1939, January 4, £7 10s 5d (record). Highest price in 1938. November 26, £7 10s j 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. LONDON MARKETS NEGLECTED AUSTRALIAN LOAN AT DISCOUNT LONDON, June 13. (Received June 14, at 11 a.in.) The stock markets are neglected. The Australian loan is now at 35s discount.

DIVIDEND AND CALL LIST. DIVIDENDS DUE, Gordon and Gotoh (Australasia) . Ltd.—Half-yearly pref., 4 per cent.; ord. 6 per cent., plus bonus of 1 per cent Jun. 14 National Timber—3s per cent, per , annum ... ... J un - 15 Wellington Gas—Half-yearly pref., 2J per cent. ... Jun. Xo Bankers' and Traders’ Insurance 7 per cent. ' ... ... Jun. 15 Broken Hill South—Quarterly, 6d a share ... ... Jun. 15 Bank of New Zealand—Final, la a share Jun. 16 Trustees, Executors, and Agency Co. —Half-yearly, 5 per cent. Jun. 16 Mount Lyell—lnterim, 6d a share Jun. 19 Hums Steel—Half-yearly, cum pref., at 7i per cent, per annum Jun - 20 Pato Consolidated Gold Dredge— Interim, 10 cents (Canadian) Jun. 20 N.Z. Breweries —Final, 4J per cent., making 8$ per cent, per annum ... ... .... ... Jun. 21 Wilsons Cement—Pinal, 4id a share .. ... ... ..i Jun. 21 Consolidated Brick and Pipe Investments —Final, 3 per cent., making 5 per cent, per annum Jun. 28 North Broken Hill—Quarterly, 6d a share J un - 28 Goldsbrough, Mort—Final, 2i per cent. .... Jun ‘ 2B Farmers’ Trading Co., Auckland British Tobacco—Quarterly, 2 per cent. Jun - 30 Morris, Hedstrom (Fiji)—Final, 3 per cent., making 6 per cent, per annum Jun - R. and E. Tingey—Half-yearly pref., at 7* per cent, per annum ... Jun - 30 J. O. Williamson Ltd., Sydney— Half-yearly pref., 3 per cent. Jun. ou National Mortgage—lnterim, at 5 per cent, per annum ... J UI J l Fairymead Sugar—Final. ha**' yearly, 5 per cent., making 10 per cent, per annum - ... July t Zinc Corporation Ltd. —Halfyearly. preference, 3s 6d sterling per share; ordinary. Is 6d sterling per share .(less - British income tax 3s 2d in £1) July 1 Nestle and Anglo-Swiss—Quar-terly pref., 2 per cent. ... ... July 1 National Bank of New Zealand— Final, 2i per cent. .... ... ••• Jul y A Consolidated Brick and Pipe Investments—Final, 3 per cent., making 5 per cent per annum July £> Woolworths (N.Z.) Ltd.-Interim ord., 5 per cent Jul y 1:5 CALLS DUE. Steamship Trading—ss, making £1 paid - •■•••• Jun * 15 Tooheys Ltd. —Bs, making 12s paid . Jun ‘ Broken Hill Pty.-ss, makmg £1 paid - Jul ? 31 I C.I. (5 per cent, cum pret.)— ss. making £1 paid ... .... - July 31 Dunedin Brewery—ss, making £1 paid - - Se P- 1 DOLLAR BATES. The Associated Banks (other than the Bank of New South Wales) to-day quoted the following dollar rates on a New Zealand currency basis They are subject to alteration without notice: — U.S.A. CANADA. (Per £1 N.Z.) (Per £1 N.Z.) SELLING— T.T. (dol) ... 3.72 7-16 3.73 1-8 O.D. (dol) ... 3.72 3-4 . 3.75 3-8 BUYING— O.D. (dol) ... 3.78 1-4 5.79 1-8

Anri! ■1 20 Railroads. ... 27.24 30 Industrials. 132.83 Sales. 1,000 Shares. 1,500 Mav 1 ... ... 25.67 127.83 280 May 25 .. 27.68 ■135.53 1,010 May 26 .. 27.78: 136.09 620 May 27 ., 28.18 136.80 380 May 29 .. 28.21 137.80 600 May 31 .. 28.45 138.18 660 June 1 .. 27.95 136.20 600 June 3 .. 27.90 137.06 350 Juno 6 : .. 28.43 138.36: 600 June 7 28.34 138.71 530 June 8 .. 28.11 ,138.49 410 June 9 .. 28.38' 140.09 790 June 10 .. 28.33 140.14 250 June 12 .. 27.93 139.13 420

Juse 12:— ' _ June 12. June 13. £ s. d. £ s. d. CopperStandard, spot — 41 13 14 41 8 14 Forward 41 19 .44 41 15 74 Electrolytic, spot 47 5 0 46 15 0 Forward ... ... 48 5 0 47 15 0 Wire Bars — _ Spot 48 5 0 47 15 0 Lead — Spot . ... 14 8 14 14 6 104 Forward 14 8 l| 14 6 104 SpelterSpot 14 3 14 14 0 0 Forward 14 4 44 14 1 104 .TinSpot ... 224 7 6 224 12 6 Forward 222 2 6 222 7 6 Silver— Standard, per oz 19 13-16d 19 7-8d Fine, per oz ... 21 3-8d 21 7-16d

June 12 ... 176 3-4 Juno 9 ... 176 3-4 7 ... 176 3-4 June 6 ... 176 3-4 June 5 ... 176 3-4 June 2 ... 176 3-4 June 1 ... 176 3-4 May 31 ... 176 3-4 May 22 ... 176 3-4 May 15 ... 176 3-4 May 8 ... 176 3-4 May 1 ... 176 3-4 April 28 176 3-4 April 3 ... 176 13-16 March 31 176 3-4 March 1 February 28 February 1 ... January 31 ... January 5 ... 177 177 177 177 177 11-16

are:— 1937. 1938. 1939. £ £ £ Brought forward Net profit Div. p.c. p.a. ... Div. amount 113,959 112,797 113,690 102,838 4 80,000 105,727 ■4* 80,833 106,525 5 82,084 Profit percentage on capital Carried forward 5.1 112,797 5.2 113,690 5.3 114,131

ing. £ s. d. Bank of New South Wales .29 2 0 Commercial Bank ■ of Aus--0 tralia ... 0 lo Union Bank (N.Z. delivery) 7 10 0 Colonial Sugar ... ... 45 0 0 Associated News ... ... 0 19 3 Associated News (pref.) 1 0 9. Howard Smith ... ... 1 0 0 Burns, Philp ... ... 2 11 6’ Huddart, Parker 2 11 6 British Tobacco (N.Z. de8 livery) ... — — ■ 2 3 Tooths ... ... ... ... 2 12 6 Coles (rights) ... ;.. 2 7 6' Woolworths ... ... . 1 2 : H Australian Consolidated In15 dustries de1 9 Anthony Hordern (N.Z. livery) ... ••• 0 14 3 Stedmans ... ...... 0 13 9 Mort’s Dock ... ... 0 15 0 Hume Pipe ... 1 0 0, Cash Orders ... 0 10 4 Peters ... ... ... ... 2 10 0 Mauri Bros. ... 3 13 6 Goldsbrough, Mort 1 5 6 Henry Jones .2 9 3 Millaquin Sugar 2 1 0 Electrolytic Zinc 2 7 3 Electrolytic Zinc (pref.) 2 10 9 Mount Morgan ... ... 0 y 7' Mount Lyell ;.. 1 5 10 Broken Hill Pty 3 2 6 Broken Hill Pty. (cont.) 2 16 0 North Broken Hill ... 1 6 1 Larut 0 5 0 Emperor 0 9 5 MELBOURNE, June T3i ; 8. d. ‘ Herald and Times ’ ... 3 2 6 Younghusband ... ... 1 9 0 Dunlop Perdriau ... ... 1 0 0 Felt Textiles ... ... ,. .. 1 10 0 Gordon and Gotch 2 15 0 3 Coles (rights) _ ... ... 2 1 General Industries 0 19 6 Mount Lyell ... 1 6 0 Mount Morgan 0 9 10

June 12 ... ... £7 8 5 June 9 ... 7 8 5 June 8 ... 7 8 5 June 7 ... 7 8 4 June 6 ... 7 8 4* June 1 ... 7 8 6 May 31 ... ... -7 8 Si May 30 ... .... .7 8. Si May 22 ... ... 7 8 5-i May 15 ... ... 7 8 Si May 8 ... ... 7 8 6 May 1 ... ... 7 8 G April 21 ... ... 7 8 6 April 4 ... ... 7 8 Si March 31 ... 7 8 6.} February 28 ... 7 8 3 February 2 ... 7 8 7J January 31 ... 7 8 6 January 4 ... 7 10 5