COMMODITY MARKETS AND TRADE.

Manawatu Standard, Volume LVII, Issue 158, 5 June 1937, Page 5

COMMODITY MARKETS AND TRADE.

BANK OF NEW ZEALAND. (By “l’euloo.”) The balance-sheet of the Bank of .New Zealand lor the year ended March 31 is a very satisfactory document. The gross profit was £1,(306,341, as compared with £1,508,982 in the preceding yr.ar, an increase of nearly £IOO,OOO. Deducting expenses and rates and taxes the net profit amounts to £600,008, a.s compared with £505,181 for the year ended March 31, 1936. There were increases under all heads of expenditure. (Salaries lose from £526,182 to £553075 and other expenses from £128,427 to £129,971. The greatest increase was in rates and tuxes, which rose from £291,192 to £323,289, and were equal to about 20 per cent, of the gross profits. To the net profit of £600,008 must be added the amount brought forward,' £339,100, making available for allocation £939,108, as against £913,319 in the preceding year. The earning capacity of the bank appears not to be affected in the le.vd through the loss of the dairy industry accounts. The bank is. strong and sound in- every respect as befits the premier trading bank of the country. At one time it was believed that it was the in-tention--of the Labour Government to nationalise the Bank of New Zealand, but the assurance given'by the Prime Minister that nothing of the kind is intended has rea-eured investors who are now disposed to pay high prices for the shares'which are looked upon as among the l>ewt and safest of investmonts..

STOCK EXCHANGE TRADING

General business on the Stock Exchanges of. ..the Dominion continues good, but it is to be noted that the business is confined to the share?* of a relatively. few companies, such as banks, insurance. breweries, chain stores and Australian companies. The return on capital invested is small in most cases There is a good demand for Government stocks, but the bids arc too, low to attract sellers. The prices now are much lower than they were during the slump, when the 4 per cents, sold at £IOB to £lO9. Gold mining shares arc very much neglected for various reaeons, but. mainly because money lias gone into mines and become a total loss to the speculators. Of very nearly eighty or more companies floated during the boom very few are said to lie obtaining gold and fewer still paying dividends.

THE BUTTER MARKET

Now that the special demand created by the Coronation is over, the tendency of prices on the London butter market is towards a lower level of values. In less than two months the season of 1936-37 will be over and the authorities will ha.ve to count up.the cost. Since the beginning of the. year the London twice has been equal to, or above, the guaranteed price since the middle of April, and at the close of last week was just a little above. Tf this price is maintained for the rest of the season the loss to the country will not be as great as originally anticipated. It is.claimed by the actmgDireetor of Marketing that because the margin of difference between New Zealand and Danish butters had been re* dneed from 30s in favour of Denmark at the end of January to nothing, in Coronation week is some justification for the marketing methods adopted l>v i ho'"authorities. Danish butter is not affected bv >the competition of New Zealand. Australian or other butters, because Danish butter enjoys practically an exclusive market in the north of England and the Danes have then own methods of marketing. This being' summer time in Enrons there should be plenty of Continental butter on the market, still the Danes are not very much affected by climatic conditions as the stock are stall fed. winch, however. has its drawbacks rs large quantities of stock fodder , have to he imported. such as maize and bd cake. Tn January .and succeeding months our butter readies the Loudon’ market inincreasing quantities, and the fact that it may lie held in store and released to meet market demands is not very helpful for the mere fact that it is in store keeps the pries down, ..$* buyers know that the butter cannot be' held in store indefinitely. To compare the price of New Zealand butter with that, of Danish butter is misleading It would be more reasonable, to institute, comparisons .with Australia and if that is done -it will he found that Australian butter sells at nrac-. tic.-’llv the same price as ours. \\ nat is affecting!our butter, is that producing countries are overloading the British market, and while that continues there is little hope of high prices.