LIQUOR IN DOMINION.

New Zealand Herald, Volume LVI, Issue 17348, 20 December 1919, Page 10

LIQUOR IN DOMINION.

; » —On. . i ! —• STOCKS NOT EXTENSIVE. PROHIBITION POSSIBILITIES. PRICES LIKELY TO SOAR,, POSITION OF BREWERY FIRMS., [BY TEtEGRArH. —OWN CORRESPONDENT.] CHBISTCHUBCH. Friday. When America passed from "wet" to. ' 'dry," many householders had provided against the " droughty" day by stocking , their cellars well with liquor. Just prior to the change prices for supplies soared , to an extraordinary extent. However, there appears to be plenty of confidence in Christchurch by the supporters of con- , tinuance that there is to be no change, for it is gathered that there has been no great rush by householders to get in early '. and secure stocks. If "prohibition should come into force, , it is anticipated by men in the trade that the existing stocks of wines and spirits will soon be cleared at famine prices. A ' reporter was informed that stocks of ; wines and spirits are rather below normal ; and smaller than they were at the time of the referendum on April 10. Despite : shipments on the water it is anticipated that supplies, in the event of prohibition ; being carried, would, not in any way meet the demand. As far as can be ascertained good : quality Continental wines at present aro in short supply. On the other hand i whisky is fairly plentiful, and fair sup- I '"• plies of the Scotch article are on the water. No Supplies from America. An impression exists that much of the : whisky now awaiting . shipment from America, and which must by law be cleared by January, may come to the Dominion. This, "however, is not so. Those supplies consist of "young" liquor manufactured during the past year or so, and legislation was passed in the Dominion last session prohibiting the importation of whisky under three years of age. . »• There is no sfiortage of gins, nor is there likely to be." Holland has been manufacturing all along, arid fresh supplies could fairly readily be obtained before June 30. the date when New Zealand, if prohibition is carried, would become "dry." Good French brandy is in short supply and difficult to obtain. South Africa has been largely manufacturing the cheaper brandies, but shipping is irregular between there and the Dominion, and it might not be possible to obtain the quantity needed if private stocking was resorted to. Statement by Importer. If importers sent out urgent orders to Scotland for whisky it is difficult to; say whether they would be filled. The large manufacture* are in effect rationing the .. colonies, and might not feel disposed to disturb the usual proportion allowed the Dominion. - They themselves have not large stocks, for they have not been manufacturing during the war. It was admitted by one Christchurch merchant that in the event of prohibition carrying the day he would put up his -. price. They could generally be expected to soar. In his own instance he might t decide to clean out his stocks as / soon as possible, and thus save the expense of running his business .right up to June 30. On the other hand, others might decide to speculate, for if lea with stocks after June 30 they could always re-export them to Australia. , It is worthy of mention that just prior to the recent referendum many men bought large stocks, in some cases almost a lifetime's supply, to store in their houses. The position seems to be that wine and spirit merchants generally would be able to wind up their businesses at a profit through the high prices they would secure - for stocks. The Brewery Companies. In thV case of breweries the situation might be somewhat different. Only three brewery companies are quoted on the Stock Exchange in the Dominion, and- these concerns are in Christchurch. The informal tion concerning their . position is thus public, and may be accepted as giving some idea how they would/"liquidate — "* ' ; from the( financial aspect. In the case of the Crown Brewery Company } Ltd., the paid-up capital is £36,400, and there are reserves amounting to £102,985. There are other resources, and it seems clear that if this company wound up it could pay at least £2 pn each £1 share. Indeed, it is currently reported that if continuance is carried this concern will distribute a portion of its reserves amongst shareholders in the form of shares. Yesterday its shares were weaker on 'Change, being quoted at 32s 6d. The ; better position of the election returns today was responsible , for this quotation being increased to 34s 6d. In the case of Manning and Co., Ltd., its paid-up capital is £96,000, and its reserves £68,017, but against this there are properties on which it is difficult to assess a value. But the company should easily pay shareholders more than £4, which is the amount paid up on its shares. At the end of November, these shares were quoted at £4 ss. Yesterday they declined to £4 Is 6d, and to-day to £4. Ward and Co., Ltd., has capital paid up to £80,000. Against this there are reserves. It also possesses considerable other property, and shareholders who have bought at market rates would not be ' likely to lose. i .