COMMERCE AND FINANCE.

Lyttelton Times, Volume CXVIII, Issue 18571, 25 November 1920, Page 7

COMMERCE AND FINANCE.

(BY OTJR FINANCIAL EDITOR.* . MOUNT LYELL DROPS DrVTDEJSD..'^; In view of the financial position at... 4h«; close of the year ended Septembers©,-)share-r holders in the Mount Lyell M/ and ;R: will \ not receive the dividend which", has; Usually been declared in December. It is officially etated that the net profit for the last twelve months was (676,000, after 'writing, off, &fc, round figures, £47,580 for depreciation on mine plant and £9470 on account of development and prospecting work. Investors ml! also note that the board has not made any. appropriation with yespeot to ©xpanditure oa new plant for the current terms, whi|e ta»» ■hav* l«en provided for out of Bumifset aside from the profits of previous years. Tae.U* E*ndid table flan™* salient figures, of *«* accounts for the last threeyews:-—;..-.:

Year ended Sept. 80, >■■■■>:■ 1918. V 1919. W2O- - £ £ Net profit . .247,228 130,232:7.6.007 Depreciation . . 60,397 .49,967. 47,682 Pxospeoting and de- • velopment i- 18,022 10,624, .9,477 Taxation . . .64,403 - ~; Appropriation plant ' 1 „ expenditure . 60,000-85,000 . Dividends paid per \ V „i' - »-Vi share . . 8s 8d Is 3d 8s Od Total distributed . 209,494 : 80,574 493,379 The detailed official reports,, including. * statement of. the assets position, will,he»wle available shortly. * ■ '„_.'..,'; ,. t ,. ' ..'_ - / COAL FROM NEWCASTLE.,:..:;,/ Of coal shipped at October for places beyond New South -Walea,. Vietoria received 128,335 tons, out ol a .totaV of 472,406 tons. Aggregate ehopments,,for the Commonwealth and New -Zealand W.**" 317,946 tons, foreign ports tajkws rw .Balance. The largest quantities.dispatehedwere U under:—Victoria, 128,335 land, 84,931 tons; South tons: Queensland, 11,985 tons;- Western Australia; 28,405 tons; Straits Settlements, 26,806 tons; Chili, 23,197 tons: Egypt, 15,581 tons; United BingOOTi 13,810 tons. . ..-•■:■'"* . - .' r~..

CANADA'S EMBARGO ON SKINS. ; Id view of the very trade, b* tween New Zealand.; and .Canada. 4fi. f&*P skins and hides, the .asmance dian Trade Commissioner -that the jToWbition will not operate- ip™*'?**™**!*? shipments from New Zealand. come. In 1919 .the total: toport from this Dominion of hides and skina.was nMthe prices were, of course, + tn» result of the.war-at < .f 1,694,867. M Of tW( total, Canada received in hides.alone; < s ™«* skins going exclusively to the Imperial .Qtm emment), ,£118,889 worth. In the previon* year, horse. and cattle hides alone were. «• ported to" the value- of ■«9,510. of which Canada took' JE82.942 -worth. • r " -^

COMMERCIAL BANK'S NEWVOAPITAL ISSUE. V Shareholders of the, Commercial Bank of Australia, Ltd., says the Melbourne Age of November 13, anticipate that the geßenis for a new issue of capital proposed by tn« directors will he discussed rather freely si the meeting- Tho right than the fixed proportionof 'new 10a shares is already being exeroised in some measure. Tho shaws aro offered in the first instance at a premium of 10s each, and any not taken may bo allotted at the discretion.of the directors to members who.apply-?<* more than their proportion, /«hne wntcn the shares may be disposed of by the board, either at par or at. a premium. Amongst many proposals put. forward front time to time was one for the issue of. new shares, to ordinary holders only, hut the board °»«ded to give equal rights to both classes, when preferential holders speaV of being,ohlig'«d to take up their part of the issue, they have in mind the desirabilitv of retaining "their voting power. Otherwise they-:are et full liberty to accept or reject the offer. The view is taken in influential quarters that something might. be done if possible for the original preference holders, .who., are "entitled to only 4 per cent dividend on their capital Their position is different from'thst of toem bera, constituting,the majority <A this class, who bought their shares in the market at prices much below the face value, and therefore Teceive considerably. more ■■. than 4 p«* cent for the investment. It is, however, tei cognised that there.aro great,difficulties in the way of affording the desired relief. Inquiry goes to Show ?that not nmei- prospect exists of getting the necessary majority ti agroe fo *n increase of dividend on the »w ferehce shares, which would involve applict tion to the Court, eonterningf the remit el which there is donbt, and the establishniejrt of a new company. . ..

FINANCING 'AUSTRALIAN TRATJiE. When the question of financing trade t« Australia was raised in the House of Caramons recently, says' the " Age,|'- Mr F. C Kollaway said he had consulted the Treasury regarding the inability of the Australian banks to discount drats, ancVie bad bean advised that there was no action which the Government could usefully take. Despite this reply, a cable messaste from London a day or two later stated that the Associated Chambers of Commerce of the United Kingdom had resolved to approach.. Mr. Chaaiberlain regarding tho difficulty of financing exports to Australia. Thore is an impression among Melbourne bankers that the Chancellor of the Exchequer will be asked to grant • tho Commonwealth Government, through its bank, a short-dated loan, ao as to tide, ovei tha which must elapse before large credit* arising, out of imports of produce from Australia are available-in-London. A country placed in tho same position as Australia in the matter ; of oversea trade ia Sweden,;.whoso exports . for the firs* six months of. the present year have fallen below expectations, and whose balance of trade is | still adverse. As a result, money is •scarce, and stock exchange quotations are unusually low. The Bank of Sweden has raised its diecount rate to 7$ per cent, and other Swedish, banks charge 8 per cent. ".' ""

HARBISON, JONES AND DEVLIN. LTD. Th report and balance-sheet of Harrison, Jones and 'Devlin, Ltd., Sydney, which Is just to hand, shows that for the year ended : September SO there was a profit of £18,494, which is £5136 6s lid leßs than last year. The reduction is ascribed to wool appraisements ceasing on Juno SO, and to no sales'of wool having sinoe been held in the Commonwealth up to September 80. With balance,brought forward last year, £6532 2s id, £25.026 2s id was available for distribution. ■ It is proposed to.pay e, dividend of 10 per cent, absorbing £10,000; to carry £9OOO to reserve fund for equalisation of dividends, making ft £27,C00; and to carry forward £6026 2s Id. The directors also propose.to pay a bonus of 3s 4d per share out of tho reserve fund for equalisation of dividends, absorbing £25,000, and leaving £2OOO in the fund. •During the year the company subscribed '£sooo -to the Commonwealth Peaoe a total subscription to various Government.loans of £21,413 3s 6d. Tho annual meeting was held last Monday. ■ ' -.--.' r - '■.->..---'. ■-■ •■■:•-■■■ --.