PAYMENT OF INTEREST.

New Zealand Herald, Volume LXIX, Issue 21144, 30 March 1932, Page 5

PAYMENT OF INTEREST.

LOANS FROM AUSTRALIA. DOMINION LOCAL BODIES. COMMENT IN MELBOURNE. Discussing 1-lic payment by New Zealand local bodies of interest on loans domiciled in Australia, tlio Melbourne Argus .slates : "Largo sums of money have been borrowed in Australia by public authorities in New Zealand, and there has been discussion recently of claims made by tlio borrowers that the rale of interest payable should be reduced by 22? per cent, in accordance with the terms of Financial Emergency Acts passed by the Australian States. Some money lias been remitted to Australia for the payment of interest on these loans and the Australian agents of I\'ew Zealand borrowers have been instructed by cable messages to withhold 221 per cent, of Ihe amount due. "Tlio mutual life assurance, societies have been large lenders to New Zealand public authorities, which raised large sums in Australia because of an alteration in rales of taxation in New Zealand which made their loans less attractive to investors in New Zealand. ]t is understood that. New Zealand public authorities have claimed the reduction of interest on the advice of the Crown Law Department in New Zealand. The general reduction of interest m Australia was designed to assist Australian borrowers, not (o grant relief to borrowers of Australian money in other countries. The money was borrowed on security in NewZealand, and tlm transaction bears no resemblance to loans raised in Australia on security in this country, which are subject to the statutory reduction in rates of interest. The New Zealand borrowers have already an advantage in exchange as interest is payable in Australia, and there is a premium on the transfer of money from New Zealand to Australia. The Australian Mutual Provident Society has obtained legal opinion upon a claim for lower rates of interest made by the Auckland Harbour Board, and it states that the interest reduction legislation of New South Wales does not apply to securities held in New Zealand. ■ There will be general opposition to demands for lower rates of interest on loans raised in Australia for public authorities in New Zealand." " THE YEAR OF GOLD." INCREASE IN PRODUCTION. STEADY RECOVERY MADE. Because of the large increase in gold production, 1931 is termed "the year of gold" in the metal world by the London Mining Journal. The journal states that one of the most striking aspects of the past year was that, with the single exception of Southern Rhodesia, every producing country exhibited an increase. The estimated world output for 1931 was 17.958,270 fine ounces, compared with 17.021,987 fine ounces in 1930—an increase of 936,283 fine ounces,, The world's gold production reached its record level in 1915. From that point it declined rapidly until 1922—the year of lowest output for 20 years. Since then there had been an almost continuous recovery. Averaging over the whole period there was an inci case of some 500,0000z. annually lip to 1931, when the increase was approximately 1,000.0000z. It would thus be seen that gold mining in the last decade showed far greater vitality than generally realised. To this result reduced wajjes and the cost of plant, machinery and supplies, combined with technical improvement, had played a leading part. RETURN OF CAPITAL. VICTORIAN PUBLISHING COMPANY. In a circular issued to shareholders, the directors of Smith's Victorian Publishing Company, Limited, Melbourne, recommend the return of 15s a share of the preference capital of the company. In making this recommendation, the directors point out that conditions have not been favourable for establishing the activities for which the company was formed. "When the company was formed," the circular stales, "it was intended that it should publish locally Smith's Weekly, and your board contemplated a little later on launching an evening newspaper in Melbourne. As time passed it became evident that such a venture would entail a heavy outlay on equipment and establishment with little prospect of immediate profit. The proposals were consequently postponed from timo to time, but the directors consider that economic conditions are now such that the carrying out of the original intentions would not be justified." The return of 15s a share will reduce preference, capital in the company from £150.000 to £37,500. SHIPPING TRADE. DHCHKASK IN BRITAIN. The Port of London Authority Now Zealand representative, Captain A. \V. I'earse, reports that the total tonnage of ships which entered and left United Kingdom ports with cargoes or ballast, for the 12 months ended October 31, 1931, wa s 340.934,765 net register tons, comparer! with 366.391.575 net register tons for the previous 12 months —a decrease of 6.9 per cent.. The figures for the principal ports were: — 1030. mi. London • . .. 55,700,100 Liverpool . . 3-1,502,740 31.<184,70!) Southampton .. 25,728,055 24,042,897 J1 ul I .. .. 12,022,877 11,182.041 Decreases, London, 4.4 per cent.; Southampton, 4,2 per cool.; Liverpool, 8.4 per cent.; Hull, 7 per cent. CUSTOMS EXCHANGE RATES. Hates of exchange ruling at the anii'iuneod dale of departure of the vessels named are shown in the following table. They are subject to confirmation by the Customs Department when the exact time of departure is learned on the arrival of the vessels in New Zealand, finally declared rates being marked*:— Wirrall. U.S.A.. dollars .. .. :i.4BJ Canadian Cruiser. Canada, dollars . . :t.9t Sydney Mam. Japan, yon . . . . 22.75 IL'.uruki, Canada, dollars 4.08 Bnurnia, U.S.A., dollars . . . . CALL AND DIVIDEND LIST. Dividends - Due. i'ldtcniiro Collieries—interim, 25 p.e. Today. British Tobacco—quarterly, 1 i P.e. To-morrow Brut It and Co.. Ltd.—interim. pief., 2i p.c. ; ord., 4 p.c, To-morrow Dunlop Perdriau Rubber Co.— interim, pref., ft p.c. . Tomorrow Bank of Australasia—final, 4 p.c. (subject to English income I mx i Friday. Howard Sin i< h —l| ua rlcrly. cum pref., 0 p.c. p.a. . . . . Apt. ft Kompt horne-I'i nshpr—finn I, 1 p.e. Apl. 0 Electrolytic 7,inc, pref. -halfyear ended Dee. ill. ]!>;)(), 4 p.e. . . Apl. 11 Brnk«n Ililt South Hhnre (payable in Melb.) .. Apl. 15 Timaru Brewery—final, ai p.c. . . Apl.