STERLING FUNDS LOWER

Evening Star, Issue 25893, 10 September 1946, Page 8

STERLING FUNDS LOWER

DROP OF £450,569 NOTE CIRCULATION GREATER ' r '' V'. - . . * A further slight decline in the London funds held by the Reserve Bank was recorded during the week ended September 2 a drop of £450,569 carrying the balance to £86,128,224. Tlhe note circulation has risen by £260,230 to £45,550,902 in the first upward movement for some time. Other items in the statement show little marked change. The statement balances as follows: —Liabilities.— •- Aug. 26. Sept. 2. £ £

(72.412 per cent.). IMPORT LICENSING. The importation of rayon piece goods from Canada may be permitted under 1946 licenses issued in respect of similar goods from the TJ.S.A., advises the Customs Department. Licenses in respect of watches from Switzerland may be amended to permit of the importation of watch cases from Canada. Consideration will be given to applications from regular importers for licenses to import barrel nipples and long 6crews, provided ‘ that evidence of, availability., is produced. In regard to crude petroleum, etc., motor spirits, and refined mineral oils, N.E.1., etc., licenses are' to be made available for imports from’ any source. WELLINGTON WOOLLEN’S DEPRECIATION. .

Special reference to the question of depreciation was made by the chairman, of the Wellington Woollen Company , Ltd., Mr A. E Allison, at the annual meeting. He said that during the lifetime of the company more than £300,000 (the amount of its capital) had been written off by way of depreciation. By adding this sum to their present book value of £203,271, thf original cost was over £500,000. On the assumption that replacement cost would be at least double (but more likely treble), and taking into consideration that the plant had always been well maintained,- and improvements added from time to time to bring it up to date, shareholders would have a better idea of tlhe value of their investrfient and of. the company’s ability to meet- competition from new. units -in the industry, provided always that suitable labour was available to keep the. plant fully occupied. At the same time, it would be recognised that because the value of their assets, measured by present-day costs, was on such a. conservative basis,-the dividend’ of 8 per cent, on subscribed capital was probably not more than 4 per cent, on asset value. PETERS ICE. A profit of £46,285. £IO,OOO higher than in 1945, was earned by Peters Ice Cream (Vic.) Ltd for the year ended June 20. after providing £22,572 for depreciation and £77,840 for- taxation. Of the profit £42,610 came from trading and £3,675 from investments Modification ,of .restrictions during the year allowed an increase in manufacture Additions to plant have been ordered. Distribution is raised from 9 to 12 per cent bv the addition of a 3 per cent, bonus The payments require £23.428 -half'the profit—and £25,000 is added to reserves.

Reserve Fund 1.500,000 1,500.000 Bank notes ... ... Demand liabilities— 45.290.672 45,550,902 State 12,727,748 12,182,218 Bank ... .64,865,634 64,303,545 Other .... ... ... Liabilities in other than New Zea370,796 383,799 land currency ... 129,197 127,748 Other liabilities ... 3,126,426 3,170,708 Total £128,010,473 —Assets.— £127,218,920 • ' £ £ Gold Sterling exchange (New Zealand 2.801.877 2,801,877 currency) 86,578,793 88,128,224 Subsidiary com .:. Advances to Slate or State under36,142 35,839 takings— Marketing organisations — ■ For other purposes 33,000,000 33,000,000 Investments 3,951,552 3,949,054 Other assets ... 1,642,139 1,303,925 Total £128.010,473 £127.218,920 The proportion o: other liabilities w reserves to note and as 72.538 per cent.