COMMERCIAL

Greymouth Evening Star, 3 January 1938, Page 8

COMMERCIAL

LONDON MARKETS REVIEW.

LONDON. January 1

Few city business men are sorrj r to see the end of 1937. It has been a year of successive shocks, with the financial news index in industrial shares falling from 124 to the low point of 93, finishing little better at 95.9. Severe as the fall is, it does not reflect the depreciation in individual shares, many of which have fallen as much as 75 per cent. Few ventures are forecast even a few weeks into the new year, as so much depends on the course of events in America. Commodity trends are as difficult to predict as industrial, and equally depend on the course of events in America. There 'is no present sign of any sustained recovery in commodity markets, which improve one day only to fall the next. The best that can be said is that they appear to have reached, at least temporarily, bottom. The new year, therefore, hardly starts under the best auspices. One really encouraging feature is the statistical position of most commodities. which remains strongenough as a result of fairly sharp rises directly any recovery appears in America. Most Bradford merchants consider the wool outlook satisfactory. The recent recovery in values indicates reviving confidence, and it is believed that there will be a good deal of trade in manufactures as the outcome.

The base metal outlook is not encouraging, and prices at present are quietly dull. Tin is the weakest of the four metals. Owing to the almost complete absence of American demand the United States tin plate industry is operating at less than 50 per cent, of its nominal capacity. The usual seasonal “window dressing” improvement in copper in America has not materialised. Rubber is lower.

BUDGETARY POSITION

LONDON, January 1

However, obscure the trade outlook it is possible to form a clear idea of the budgetary position and of revenue. There are strong indications that the revenue inflow will surpass the Budget estimates, thanks largely to the unexpected windfall of an extra £5.000,000 from estate duties and higher customs receipts. The Stock Exchange depression is reflected in the decline of £2,250,000 in stamp revenue, which the Prime Minister (Mr. Chamberlain) expected to be a million higher. The expenditure on defence is obscured by the fact that the Government was enabled to meet £80,000,000 defence expenditure by borrowing.

The expenditure supply services is already about £16.000,000 more than that contemplated from revenue, but if the defence services spend the full amount authorised from revenue, borrowing must be heavy in the last quarter of the year. Summing up, the outlook is again for a balanced budget, but even superoptimists see nothing but a continuance of burdensome taxation ahead. CLUTHA RETURN DUNEDIN, January 3. The Clutha return for the week ended December 24 was 121 ounces for 123 hours. Week ended December 31, 125 ounces for 94 hours.

NATIONAL BANK OF N. ZEALAND

The General Manager of the National Bank of New Zealand Limited, announces payment on January 4, of an interim dividend at the rate of 4 per cent, per annum, free of tax, for the half-year ended September 30, last. The dividend will be payable in New Zealand, at any branch of the National Bank of New Zealand Limited at current rate of exchange for demand drafts on London on the date of negotiation. This makes the interim dividend equal to £2/9/5 per cejnt. or equivalent to £4/18/10 per cent, per annum. The Bank’s capital and reserves are as under: Subscribed Capital £6,000,000. Paid-up capital £2,000,000. Reserve Fund (invested ’-n Government Securities) £1,000,000. Currency reserve (invested in Government securities) £500,000. Reserve liabilitv of shareholders £6,000)000. Total £9,500,000. And in addition there are undivided profits carried forward of £112,797. In the balance sheet liquid assets stand at £6,840,000 which are equivalent to 45 per cent or 9/- in £ of total liabilities to the public and for every £1 of its own funds the bank is holding £4/4/4 of the public’s money. ;. .