FARMING AND COMMERCIAL

Manawatu Standard, Volume LVI, Issue 123, 24 April 1936, Page 14

FARMING AND COMMERCIAL

COMMODITY MARKETS AND TRADE.

THE SHARE MARKET. (By “Penloo.”) There has scarcely been time since the resumption of business on the Stock Exchanges after the Easter holi--1 day to note the trend of investment business. There have been many transactions, but these have been apparently between professionals. The Stock Exchanges of New Zealand will probably experience an anxious time, for the rest of the year, because of the trend of politics. The new Labour legislation is, according to the Minister of Labour, estimated to cost the country between £BOO,OOO and £900,000, and it was hinted that the money would be obtained largely through the income tax. This must affect all classes of joint-stock companies, who will be coinpelled to reduce their dividends, that is to say, instead of the shareholders getting the benefit of the year’s trading, a big slice of' the profits will pass to the Treasury. If dividends are lower prices of Shares must be lower* and there is thus every prospect of a generally depressed market. A good many investors will, no doubt, inyest in the shares of companies domiciled in Australia, and hold the income from these shares in Australia, later repatriating the money which would chine in as capital and not as income. Capital lias ways of caring for itself, and those ways will be adopted in the event of attack. • Referring to Stock Exchanges, the writer is tempted to address some advice to Palmerston North. It is now the sixth city in New Zealand with a population of over 22,000; that means that outside the four main centres, there is only one other city ahead of Palmerston North. It is humiliating to find that the sfteth city in ,tlie Donnnion has no room for a Stock Exchange in its business activities. It is an omission that should be corrected as soon as possible. There are, of course, some difficulties to be overcome, for there are country brokers attached to the .Wellington Stock Exchange and licensed brokers who are not attached to any organisation and how to harmonise their interests will he the problem. Because there are difficulties in the way that should not prevent action being taken. There are Stock Exchanges in New Plymouth and Invercargill, and the sixth city in the Dominion should possess one. In dealing with the prospects of the investment market it would be folly to overlook the political tension in Ehrbpe. That the situation is grave is evidenced by the warnings voiced hv British Minister's, Thus Mr A. DuffCooper, Minister of War, in a speech at Manchester, made use of these grave words: “The European situation is graver than in 1914. The stake's are also higher. The fate of Empires was then in the balance. To-day it is the fate of civilisation.” If war eventuates Stock Exchanges would have no place in the economy of things. FIRST QUARTER’S TRADE. Preliminary figures dealing with the overseas trade of the Dominion for the first quarter of the year, show, wheii compared with the figures foi - the corresponding quarter of last year, increases in both exports and imports. The exports totalled £18,798,000, against £15,660,000, an increase of £3,138,000, equal to about 20 pci; cent. This is a substantial gain, and is due largely to the higher prices obtained for wool, and the greater quantity sold. Sheepskins have also contributed to the increase. The imports totalled £9,621,000, against £8,499,000, an increase of £i,122,000, ol- a little Over 12$ per cent. Values are all given in New Zealand currency. While exports have fluctuated over the past three years, imports have shown a steady increase, and this trend is bound to he emphasised during the next few months with the i'nci-ease in spending power due to increase in wages. the Wool market.

Ono of several other commodities which would be favourably affected if a war broke out in Europe is wool, and in the opinion of some experts the improvement in value that has • already taken place has been due to the threat of war. Wool was taken over by the British Government at a satisfactory price during tile. Great War; nevertheless Germany was able to get on with lier iightiiig without wool imports. Blit Germany had previously accumulated stocks which she is unable to do now. Germany is relying on a synthetic fibre known as “Zelhvolle” which is being turned out in considerable quantities, and is providing the masses with a cheap wearing apparel. Italy is also out of the wool market. Nevertheless, in the event df war, wool values would go up with a bound and stay up. According to the Financial Tillies (Londbn) keen bidding for wool is expected at the London sales Which open on May 5. This is very probable, for most Countries which do not look favourably upon the international situation, will buy as much wool as possible. Apart from tliis stocks ate low, and in view of the ciitreht demand the shortness of stocks would be a bull point. As between London and Dominion wool sales the latter possesses an advantage in that it has Japanese competition which is absdrtt in London. It is cheaper and moi-e profitable for the Japanese to .buy their wool requirements in Australia and New Zealand than in London. Because of some trade differences between Australia 'and japan the latter threatens to Withdraw her competition, which, of course, she is quite free to do. Japan cariiiot get alobg without wool, and Japanese Will attend the sales as ushal, hut instead of free competition it is proposed that all Japanese buyers shall pool their requirements and entrust One of their number to do the buying. By this means they believe they would force down the price of wool to tho detriment of Australian woOlgtowerS. But there is always the possibility of the scheme not working out as planned. With all the currents and cross currents that affect tile wool market, forecasts become difficult and are therefore best avoided. MERITS OF WOOLLEN CLOTHING, ‘The greatest menace that Wool has to face is that of _ synthetic products Which stern necessity is compelling some nations, Germany and Italy, for example,to concentrate oil. The production of substitutes ha's already readied a high state of utility. Blit these substitutes can neVCf takfe the place of wool, for tidy lack the essentials of a material desirable for clOtllihg. The British Research Association for tile woollen and Worsted industries, an oifeluiisation supported by Shine of the largest manufacturers in England, ih a recent report pointed oilt that tile ideal wearing material must possess, first, elasticity, tliat is it should neither tear nor' sag when Extended, and must “remove creases by its own properties.” In this respect- wool is tmiqtie as a single fibre When wet ban be extended by seventy per cettt. of its Original length, and will theh tettlrh to its ffifniCr Sizb.‘ ClotheS made of Wool if carefully folded and stored, due to this elasticity, shoW_ lib tendency, to cl'fease, Of lose’ their' shape.

Secondly, a clothing material must possess strength to withstdiiu strain and heavy wear. Fibres must not rupture under strains, such as occur in bending. Wool strands when compared with metal wires of the same diameter, proved to possesses a tensile strength greater than that of aluminium, and only slightly less than that of annealed copper. Investigations have shown that one ounce of an ordinary fine fibre of wool will measure one hundred miles in length. Finer fibres than these are available, and can be made up into garments of the finest and lightest kind. Not only are these fibres light, but they fill the next requirement of a clothing material, heat-retaining power. Wool, has the lowest conductivity for heat of any standard material, that is it best prevents heat from escaping from a warm body. Even when ivool becomes damp the conductivity increases much more slowly than other fabrics, and in this way colds due to sudden chills are avoided. Another requirement of the ideal fabric is that it should absorb moisture in the form of perspiration, from the body. Under ordinary atmospheric conditions wool will absorb water equal to 18 per cent, of its own weight. As the humidity of the atmosphere varies, the weight of water absorbed changes, slowly in the case of wool, much more rapidly with other fabrics. This leads to condensation by moisture on the skin whch there is a fall of humidity. AVbol is not so prone to give the clammy feeling experienced with other garments, and thus it retains the most equable temperature next to the skin of all textile fabrics. As well as preserving an equable temperature it actually makes the skin glow for when the wool becomes wetted by the perspiration it generates heat.

DAIRY PRODUCE

butter Market firm.

Joseph Nathan and CoV., Ltd., have received from London the following cabled advice, dated April 22: —New Zealand butter, 87s to 88s. Market firm. The New Zealand Loan and Mercantile Agency Coy., Ltd., have received the following advice from their London house, dated April 22:—Dairy produce (last week’s quotations in parentheses) : Butter, New Zealand, choicest salted, 87s per cwt. (87s to 88s). Clifeese, 53s 6d per Cwt. (53s to 53s 6d). Markets steady.

CANTERBURY MARKETS.

A QUIET PERIOD.

Per Press Association. - CHRISTCHURCH, April 23. The markets as a whole have remained very quiet this week and in most lines transactions have been 'restricted.

The potato market is Weaker, the f.o.b. quotation to-day being from £5 15s to £6, with very little interest being shown by the North Island. Reports from both Auckland and Wellington indicate that there are still, fair North Island supplies, available and at the quotation of £6, Which obtained here at the beginning of the Week, it Was Very hard to do business. Wheat is being delivered fairly steadily and some excellent samples arc coming forward threshed from the stack. The fowl wheat demand has slackened a little because of the continued offering of undergrade,- which is being absorbed readily for snipping. The, price of good whole grade is 4s sid f.0.b., with values to farmers from 4s to 4s Id. Under grade is worth 3s 6d to 3s on trucks.

There Is.practically no enquiry for small seeds. , Covvgrass is now being delivered from the country, but almost without exception the sample is poor. The market is glutted with supplies from last year and merchants are not interested ill the now crop. . Th'c price to farmers is exception' ally low, quotations ranging from 4d to 5d per lb. White clover is being offered in a limited quantity from the country, the crop this year being short. There is, however, a heavy carry-over from last season and supplies arc adequate to deal with this year’s demand. Clover is worth 8d to 9d per lb on trucks. The better prices have induced a few more farmers to offer their ryegrass and a few lines of Italia.it and perennial have changed hands. The price is from Is 9d to 2s per bushel. Cocksfoot is easier. There are still a few lines being offered from the Peninsula, but most farmers arc not kefen .to meet the market at the present price of 6d to Bd. Chaff has had a small enquiry this week and sales have been niade at £2 7s 6d to £2 12s 6d per ton. Oats have conic forward more freely in tlie last few' days and arc meeting with a fair demand. A Cartons are worth 2s 4d on trucks, B’s 2s l£d, Algerians 2s, and Duns 2s 6d. The late 'arrival of Australian shipments of feed barley in the North Island has kept the demand alive' here. Barley is quoted at 2s 3d to 2s 4d oil trucks. Peas are offering fairly freely, but number 1 grade arc scarce. The market is a little easier because of the lack of. demand, the price being 5s 3d to 5s 6d Oil trucks, australiaiTmarkets.

SYDNEY, April 23. Wheat at country sidings is ’quoted at 3s 2£d a bushel, which is OqUal to about 3s 9d cx trucks, Sydney. Flour, £9 15s a ton. Brand and pojlard, £6 ss. Potatoes, Tasmanian, £9 IGs to £lO a ton; ethers, £B. Onions, Victorian browh; £ll 10s a ton; white, £2O. Maize, 4s 3d a bushel.

ADELAIDE,. April 23. Wheat, growers’ lots is 3s 8d a bushel. Flour, bakers’ lots, £9 15s a lon. Bran and pollard, £6 2s 6d. Oats, Algerian, Is 9d to Is lOd a bushel. Barley, Is lOd.

WELLINGTON STpOK EXCHANGE.

YESTERDAY’S BUSINESS AND PRICES.

. No special features emerged in the Wellington stock and chare markets yesterday, prices showing little or no change. Government loans continued quietly steady, the only recorded business being a sale of 3| per cent, stock, 1938-52, at £lO2 15s, late on Wednesday. Minor movements were seen in bank. issues. E.S. ilhet A. were done Me o'ii Wednesday at £6 6s, and buyers stayed ill yesterday at £6 3s. New Zealand “ordinaries were not wanted, but the D longterm mortgage issue was quoted 9d better at 27s '9d. Buyers of National of Australasia firmed 6d to £7 7s 6d. Goldsbrough Mort had further business at. 3ls 9d. Wellington Trust, Loan had sales at £5 4s, aiid more were wanted at that price. Insurance shares were unchanged, and gas-, meatfreezing, shipping, colli and timber issues were steady at about late rates. Kaiapoi Woollen firmed to 14s 8t), sellers 15s 3d. Staples were 6d up at 345, sellers easing to 365, 6d. Tooths wore weak at 51s 6d. Miscellaneous iilrtUitrial ahd trading issues were iiioSt oil the firm side, Australian Glass advanced to business dt 84s 9d, and more were wanted at 84s 6d. Consolidated Brick were firmer On s&lfes dt 9s 13 d and ltls. DUnlop-PerdriaU nu.Afed Up to 15s 4d, a rise of /id, sellers coining ill gjt 16s. General Industries had 6ales at 18s 9d,bhd CL J. Coles were quoted 9d up at 70s 6d. N.Z. Drligs were eiisy, bt 735. YESTERDAY’S QUOTATIONS. This latest buying and selling quoldtioris recorded yestfei-dhy on the Wellington Stock Exchange wore a$ follow

YESTERDAY’S SALES. Wellington.—lnscr. Slock, 3£ p.c.,193852, £lO2 15s*; E.S. and A. Bank, £6 6s ; Goldsbrough, Mort, £1 lis 9d ; ." gtn. Trust. Loan (2), £5 4s*; N.Z Refr.g., 19s 9d*- 10s paid, 9s 9d; Kauri limber, £1 3s 9d: Australian Glass, £4 4s 9d; Consobd. Brick, 10s*, 9s lid, 10s; General Industries (2), 18s 9d; Wilsons Cement, £2 3s*. *Latc sale Wednesday. „ ' Auckland—Union Bank, £9 16s; Taupiri Coal 17s 3d; Northern Steam, 6s 9d; Taupo Totara Timber, 9s 6d; Mosgiel Woollen, £9 15s; Broken Hill Pty., £2 19s 9d: .N.Z. Breweries, £2 12s 3d; Claude Neon (N.Z ) (2) £2 2s; Bycroft, £2 ss; Consobd. Brick (2L 10s; Farmers’ Trading, 9s 6d; Morns Hcdstrom, £1 5s 9d; N.® Drug, £8 15s 6d; Wilsons Cement, £2 3s; Woohvorths (N.Z.), ord £5 15s;’prof., £1 15s; Martha Mine (3) 19s 9d; Maori Gully, Molynbux Dredge, 2s OJd; AVbihi G Junction 3s 9A Christchurch.—Comm. Bank Aust (2), £l 0s 2d; E.S. and A. Bank, ,f 6 , Bank, £9 15s; Goldsbrough Mort (2), £1 11s 9d; British Tobacco £2: Broken Hill Pty. £2 19s 8d; Cortsdid. Brick, 9s lid; Dun’lop-Perdriau (4) , 15s scl; Electro. Zmc., £1 17s 3d; G. J. Coles, £3 10s 9(1. S 5 10» l'Od; Argo Gold (2), Is 6d; G'fitspie s Beaijji, Is 2d; Mount Lyell (4), £1 4s 64, tl 4s 7d; Mount Morgan, 16s Id. bales reported: Reserve Ba.lk .C 6 Hs; Union Bank £9 14s 6d;. Consobd Brick,. 9o lid, Dunlop-Perdriau, 15s 4d; • N.Z. Farmers Co-op., 4£ p.c. stock, 1949, Mount Bank of N.Z. £2 6s 6d*; Kai| poi Woollen, 15s; N.Z. Breweries, £2 12s 3d; Skippem, 3d; Molyneux River, 2s 0 2 d. *l,’at6 Sale Wednesday. THE MONEY MARKET. 0 ” LONDON DISCOUNT RATES. .LONDON, April 22. Discount and short-loan interest rates arc: -Day-to-day IoaUS, £ per cent.; fine trade bills, -three mohths, 2 to 2£ per cent.; bank bills, three months, 9-16 per cent; bank bills, six months, | per cent.; Treasury bills, two months, £ per cent.; Trcasuij bills, three months. £ per cent.

.buyers. Sellers. N.Z. GOVT. LOANS— £ s. d. & s. d. 31 p.c. inscr. Stock, Match, 1939-43 lOl 0 0 102 10 0 31 p.c, ditto, Sept., * 1939-43 100 17 31 p.c. ditto, March, 6 — 1941-43 100 15 0 - 31 p.c. ditto, 1938-52 ...102 15 31 p.c., ditto, Nov., 0 - 1941-52 102 10 31 p.c. ditto, May, 0 — , 1941-52 - 102 10 0 — 4 p.c. ditto, 1937-40 ... — 102 10 0 4 p.c. ditto, 1952-55 ... — 103 10 0

4 n.c. Bonds, 1937-40 ..102 0 0 — 5 n.c. Rural Bonds, 1947 102 10 0 ‘ DEBENTURES— Amalg. Briek (Wgtn.), 100 0 0 7* p.c., 31/3/44 Ditto (Auck.), "i p.c., 100 0 1/3/44 — 0 BANKS— 12 5 Australasia ••••• 11 15 0 0 C'omrcl. of Aust 1 0 0 1 0 5 Eng., Scot, and Aiist. 6 3 0 — National of N.Z. ...... National of Australasia, 3 17 6 £5 paid Now South Wales, *7 7 6 — 33 17 6 New Zealand — 2 6 9 Ditto, D long term ... 1 7 9 1 10 0 Reserve Bahk — 6 11 9 Union of Atist FINANCIAL— 9 13 6 9 18 6 Equitable Bdg. Co. ... Goldsbrouprh, Alort and 1 11 0 12 1 12 0 3 6 Alortgage Corporation 0 9 10 0 10 4 N.Z. Guarantee Corp. 0 5 4 C 5 7 Well. Invent., T. & A. 0 8.10 — Well. Trust, Loan ... GAS5 4 0 Auckland 1 5 9 — 0 19 6 Gisborne INSURANCE— 0 7 6 0 10 6 National of N.Z *0 19 0 0 19 9 South British 4 10 0 — 3 2 6 MEAT PRESERVING0 Gear Meat — 1 1 N.Z. Refrig., £1 paid 0 19 6 — Ditto, 10s paid 0 9 8 0 9 10 Well. Meat Ex., picf. TRANSPORT— 0 17 6 1 0 0 Union Steam, pref. WOOLLEN— *1 6 0 Kaiapoi, ord 0 14 8 0 15 3 1 17 0 Wellington, ord Ditto, - pref 5 15 0 5 15 0 — Oamaru 1 0 0 1 0 9 Bonds Hosiery Mills COAL— 1 0 0 Grey Valley 0 9 6 — Kaitangata TIMBER— *1 4 6 6 Kauri 1 3 — Taiipb. Totara, ord. .. BREWERIES— 0 9 3 0 9 9 N.Z. Breweries — 2 12 6 Staples and Co 1 14 0 1 16 6 Tooth and Co 2 11 6 — Tui • MISCELLANEOUS—. 2 2 6 4 4 British Tdbacco 2 0 3 Proken Hill Pty *2 19 6 3 0 6 Ditto, contrib . *1 16 0 Colonial Sugar 41 10 0 42 0 0 •Denhard, pref — 1 0 b Con. Brick and Pipe — 0 10 2 Den. and Med. Sup. — 0 12 0 Dominion Fertiliser ... . 1 6 6 D.I.C., ord 0 15 0 — 0 Dunlop Perdriau 0 15 4 0 16 G. J. Coles 3 10 6 6 11 6 N.Z. Drug 3 15 0 — 0 Proecra Bread, ord. .. 0 1G 0 1 15 Ditto, vendor 0 18 0 0 1 0 0 0 6 Wilsons N.Z.. Cement 2 2 6 2 4 6 Woolwortlifi N.Z., ord. 5 13 0 6 0 0 Ditto Ltd., N.Z., pref. — 1 18 0 Ditto, Ltd., 2nd pref. 1 5 0 1 6 0 Wellington Cordage ... — 0 10 6 Grided and Son — 0 16 0 Morris Uedstrom Woolworths (Victoria), 1 5 6 pref 1 7 9 0 3 0 Victoria Laundry — 1 2 6 Northern Boiler . Milts MINING— ; ’ 0 1 5 0 2 4 0 2 2 1 0 6 3lossy Creek -.. 0 1 3 — Skippers 0 0 2i — Waihi Investments ... 0 11 b 0 1 5 0 0 4 — Mdiittt Morgan Placer Development .. 0 16 5 10 0 0 0 16 d Bundi Tin — 0 16 *Cum dividend.