AUSTRALIAN EXCHANGE.

New Zealand Herald, Volume LXVII, Issue 20491, 17 February 1930, Page 5

AUSTRALIAN EXCHANGE.

REMITTANCES TO LONDON.'

PREMIUM RAISED AGAIN.

RATE NOW PROHIBITIVE.

(Received February 16, 6.45 p.m.)

SYDNEY, Feb, 16

Owing to the depletion of Australian funds in London the banks have again been obliged to raise their rates for drafts by another 10s per cent., which will operate from to-morrow. It will now cost the importer 62s 6d per cent, premium to transfer credits from Australia to London.

The charge is the highest for years, and is regarded as prohibitive. It will tend to chock imports, as no doubt is intended.

The quotation of 62s 6d premium is evidently that for telegraphic transfers, the rate introduced on January 23 having been 52s 6d. The other selling rates will now bo 53s 9d for sight drafts, 45s for 30 days drafts and 36s 3d for 60 days drafts.

The shortage of Australian funds in London is illustrated by the returns of the Commonwealth Bank. On January 20, prior to the last revision of tho rates, the return showed money at short 'call in London to be £4,860,000 as against £16,658,000 on the corresponding date last year. A cablegram published last Thursday stated that the amount had been further reduced; to £3,900,000; on the corresponding date last year, the return showed £10,060,000.

Tho Australian exchange rates are, of courso., far below the "gold point," i.e., it would be considerably cheaper for a trader with commitments in London to export gold, but tho restrictions imposed by the recent" legislation, placing tho control of all gold in the hands of the Commonwealth Bank, prevent him taking advantage of this course.

While Australia has suspended the gold standard—following the example of Canada and Argentina'—New Zealand has not yet adhered to it, the movement of gold foxadjustment of the exchanges being regulated by the banks and subject to the consent of tha Government. Changes in the Australian exchange rates during the last, six months have been followed within a few days by equivalent alterations in the New Zealand tariff, and the tendency has been to eliminate the disparity between the two sets of fjjaota'uons. Since December 20, the, banks in London have been quoting exactly the same rates for New Zealand as for Australia. Th& New Zealand banks also charge the same rate for telegraphic transfers as the Australia banks, so that unless some new circumstance 'has intervened, a further increase in the New Zealand selling rates appears probable. .For mail transfers, the New Zealand rates are lower than the Australian. Buying rates are also lower in New Zealand, the latest quotation for sight bills being 12s 6d premium in New Zealand and 25s premium in Australia. AUSTRALIAN STOCKS.

COMMENT BY THE ECONOMIST

(Received February 16. 5.45 p.m.) LONDON, Feb. 15

The Economist, commenting on the recent statement by the Prime Minister of Australia, Mr. J. H. Scullin, regard? ing the country's finances and also on the shipment of Australian gold and the reduction of loan activities, says: "These events may be taken as evidence that Australm is doing her best to protect the interests of her creditors, and Australian stocks will emerge from the present depression with, we trust, an enhanced reputation for security."

WELLINGTON MORTGAGES, LTD

DIVIDEND OF 7 PER CENT. Wellington Mortgages, limited, a young concern, has issued a satisfactory balancesheet for tlie year ended December 31, 1929. The business has been sufficiently profitable for the .directors to distribute a 7, per cent, dividend besides providing for income tax. The net profit for the year was £lß2l, and the directors assert; that the amount does not represent the full return on capital subscribed as the inciease during the year has been received in calls paid monthly, and invested Irom time to time. There was nothing brought forward from the previous year, for after paying dividend and making a reserve for income tax the balance was applied to writing down preliminary expenses.

STOCK SALES.

VALUES AT WAIHOU

The Co-operative Auctioneering Company, Limited, reportAt the Waihou stock sale on Friday, we penned a good yarding of .beef and a 1 medium yarding of store cattle and sheep. The whole yarding changed hands at late rates. There was a full yarding of all ' classes of pigs, the majority being prime baconera and porkers, which met with keen competition. Ihe whole yarding of 472 pigs, was quitted at increased rates, baconers averaging "id to 7]d lb, and porkers 7sd to Bd. Quotations:— Small woolly lambs, 12s lid; small lambs, 10s to 14s; fat cows, heavy, £9 5s to £lO ss; medium fat cows, £8 to £9: light, £6 10s to £7 13s; forward-conditioned cows. £5 17s Gd to £l> 10s; frdsh store cows, £5 to £fi Is; store cows, £4 to £7 15s potter bulls. £5 }o £9. Pigs: Prime heavy baconers, £1 12a to £4 17s; medium, £4 4s to £4 9a; light. £3 17s to £4; heavy porkers. £3 10s to £3 18s; light, £3 to £3 ss; good stores. £2 14s to £2 IBs; slips, 35s to £2 ss; weaners, 25s to 30s: small weaners, 14s to 18a.

NGARUAWAIIIA SHEEP FAIR. The Farmers' Co-operative Auctioneering Company, Ltd., reports 'having held a sheep fair at Ngaruawahia on Friday, when an average yarding of sheep come forward. Prices throughout were on a. par with late rates. Good lambs were in demand and mot with keen competition. Quotations: — Six-tooth to a.m. store wethers, 19s 4d to lis. yd; four-tooth, six.-tooth and s.m. ewes, £'l to ill Os N 6d; esed ewes, 13s ; best mixed sex lamba, 12s to 14a lid; mixed Bex lambß, shorn, 10s to Ids 3d; other lambs, 8s Gd to 7s 9d; one-shear Romney rams, 3!gns. A medium yarding of cattle was also penned. Medium fat cows made £7 l'2s to £8; light, £6 to £7 ss; venlers, £3 15s; yearling to 18-months Shorthorn and Holstein steer calves, £4 3s to £5 10s; 18-month in-calf heifers, £5 10s; weaner calv.en, £3 to £3 2s.

GOOD PRICES AT TE AWAMUtU. The New Zealand Lonn and Mercantile Agency Company. Ltd., Hamilton, report:— At. our-sale at Te Awamutu on Thursday we had a heavy yarding of fat and store cattle, sheep and piss: Beef was penned in full supply and sold at late/rates. Store cattle and sheep met. with a good demand and we effected a total clearance at most' satisfactory prices. Quotations: Fat steers, Xll 15s to £l2 17s; lighter, £lO 2s to £lO 15s; prime fat cows and heifers,. medium weights, £8 10s to £S) lis; light, £7 4ls to £8 Cs; plain fat cows, £6 5s to £7: fleshy boner cows. £4 16s to £6: others, £3 10s to £4 4s; 4i-year-old forward Shorthorn bullocks, £l3 3s to £l3 ss; 3}-year-old, £lO 10s to £ll 2s Gd; IS-months steers. £6 6s; best 1 weaner Jersey heifers, £3 17s 6d to £4 10s; medium quality, £3 3s to £3 14s; small and mixed class, £2 5s to £3; dairy cows, £9 10s to £ll ss; heifers, £8 5s to £9 15b; bulls for works, £5 5s to £7 10s; full-mouth ewes, 10s 4d to 13s fid; shorn wether iambs, 12s 9d to 14fi Id ; small, 6s to 8s 4d; woolly lambs, 13s 5d to 15s Id; small, 10s to lis lOd; two-tooth wethers, £1 is 4d to £1 2s lOd; two-tooth ewes, £1 6s; one-shear SouthdoWn rams, 3gns: one-shear Romney rams, 3gns to 3}gns. Pigs; Heavy porkers, £3 3s to £3 7s; light, £2 12s to £2 17s; good stores, £1 13s to £2 6s; slips, £1 Sa to £1 14s; weaners, 17b to £1 4s,