COMMERCE AND FINANCE.

Lyttelton Times, Volume CXVIII, Issue 18572, 26 November 1920, Page 6

COMMERCE AND FINANCE.

(BY OUR FINANCIAL EDITOR.)

THE AMERICAN E.BICE SLUMP. Tho Guaranty Trust Company of New Tork, in its circular for October 8, eajs: •* Price reductions ranging up to 33 1-8 per cent in various commodities have cruelly characterised tho progress of readjustment during tho last two weeks. Beginning with announcements of cuts in the manufacturers prices for cotton and woollen fabrics, the movement towards lower levels has been lpreading steadily. Reductions in a number of automobile prices havo raised .the question as to the possibilities of reductions in steel prices. The larger steol companies are operating up to 90 per cent of capacity, however, and, while tho ; . tot-al of unfilled orders- is decreasing at i tho moment, bew orders from the railroads as soon as their financing arrangements ae settled and from Europe aro expected to hold prices firm. So far as predictions are made, they are for a lowering of the prices of the independent companies to a parity with those of tho Cnited States Steel Corporation. Leather and rubber goods prices aro down. Ravv cotton has sold down to 20 cents per lb. Wheat prices have dropped below 2dol a bushel, and corn and oats have fallen _ in sympathy. In a dull market copper is beingl sold at 18 cents per lb, with offers below that being made to stimulato business. Xhero have been recessions in a number of food products, notably sugar, coffee, flour, potatoes, beans, condensed milk and beef.”

CHRISTCHURCH STARR-BOWKETT BUILDING SOCIETY. The first annual report, balance-sheet and statement of accounts o 5 Group 1 of tho Christchurch Starr-Bowkett Building Society for the year ended October 'O, 1920, shows that the society was successful in issuing tho wholo of the 5000 shares of which tho group is composed. The profit and loss account Bhows a balance of £4653 15s Bd, equivalent to 18s 7d per share. Tho greater part of the profit was obtained by way of premiums, tho repayment of which extends over tho period allowed for repayment of the separate loans. This profit obtained, therefore, will be divided amongst shareholders after tho last member has roceived his loan. During tho year the society held sixteen appropriations of £IOOO each, eight by ballot and eight by sale, and the premiums for the latter amounted to £4300 10s. Tho exceptional rise in 'the cost of buildings and tho corresponding rise in the market value of houso property necessitated great car© being exercised in passing lonns. On studying the expenditure for tho year, it was found that next year a reduction of 6d per annum per share on the working expenses levy could be made, so that the society will siow bo able to pay working expenses on Is 3d per share per half-year. Owing to the largo demand for shares, and the fact that the Group 1 was fully subscribed, the directors decided to form Group 2, and received a large number of applications for shares. The retiring directors are Messrs J. B. Neale Wid H. L. Bowker, jun. Mr Bowker expects 4o be away from business for somo part of next year, and so does not seek re-election. Mr J. B. Neale is eligible and offfers himself for re-election. The society’s auditors, Messrs J. Mawson Stewart and J. W. K. Lawrence, also retire, but offer themselves for re-election. The directors desire to record the energetic and valued services of the secretary, Mr P. Helmoro, and staff.

GOVERNMENT'S WHEAT PURCHASES. The Wbeat Controller’s Tetum for the period ended November 23 is m follows • Bushels. J.breaking returns reoeived date 4,300,886 Contracts to purchase goojl milling „ 8,711,367 Contracts to purchase fowl-wheat . 78,375

Total . . . . , . 8,090,628 Amounts paid to farmers through Government brokers, £1,512,885, representing .... 8,804,742

WESTPORT COAL COMPANY. The annual report of the directors of the Weßtport Coal Company for tho twolve months ended September 30 last, shows that ho profit for tho year was £36,230 4s 7d. With the amount brought forward, £11,724 lUs, there was £47,954 18s 7d to bo dealt with. The directors'proposed to pay a dividend of Is per share, making a total distribution for the year of Is 6d per share absorbing £33,750. The sum of £IOOO is to bo transferred to the Employees’ Provident Fuiffi and the remainder, £13,204 18s 7d, is to’bo carried forward. It is also proposed to pay a bonus o£ Gd per share out of the insurance fund.