DEALING IN EXCHANGE

New Zealand Herald, Volume LXX, Issue 21579, 25 August 1933, Page 7

DEALING IN EXCHANGE

THE " OUTSIDE "• MARKET NOT OF LARGE DIMENSIONS FUTURE. POSITION UNCERTAIN Doaling in London exchange outside tho banks is not iikcly to have sufiiciont wo iff lft of itself to force a reduction in the fixed rate, according to mows expressed .yesterday. Those conversant with tho "outside" market [ * s all active one but small. There aro more ways than one of evading tho high rate, but thcj ordinary trader, as a rule, has not the facilities open to a firm whoso operations are international. On the extent to which outside dealing develops will hinge the ability of tho banks, or moro particularly tho Government, to maintain the present rate. This outside market has been in existence since tho banks declined to facilitate transfers of capital from London. It has been availed of largely by sharebrokers and persons wishing, for various reasons, to bring money to New Zealand. For somo months a steady trade has been dono by these persons or firms with others wishing to establish funds in London. The rato recently announced in tho South, 23J per cout, is stated to have been available in Auckland for somo time. The difference appears to bo that dealers aro becoming moro open, believing that a fall in tho fixed rate is imminent. This has lead to a certain amount of "hawking" in exchange, although that stage does not seem to have been reached in Auckland. Pressure to sell evidently arises from tho belief in some quarters that tho Prime Minister, tho lit. Hon. G. W. Forbes, is carrying back to New Zealand certain wishes or "instructions" from Homo interests. It is surmised that, if nothing happens shortly after his arrival in tho Dominion, tho "outsido" market will sink bftck to its former unobtrusivo state. In that condition it is not likely to influence tho fixed rate, as it probably does not amount to more than 5 per cent of the full business dono in exchange. Importers generally do not go outside their bankers for London exchange, although they aro endeavouring to keep their requirements as small as possible. Somo probably aro still working on balances established before the exchange moved upward. It i 3 stated that persistent rumours in tho past few days have given rise to many inquiries at tho banks, just as other rumours have dono sinco January. Inquirers find little assistance, as bank officials themselves aro in possession of only as much definite information as their clients. GOLD AND SILVER QUOTATIONS IN LONDON (Received August 24, 7.35 p.m.) LONDON, Aug. 23 Fino gold is quoted to-day at £6 5s 5d an ounce, compared with £6 5s 3d yesterday. Silver is quoted at 17 15-16 d an ounce spot and 18 1-lGd forward, compared with 17 13-16 d and 17 15-16 d yesterday. The quotation for silver at per fine ounce is 192 d, compared with 19 13-16 d 'yesterday. FOREIGN EXCHANGES DOLLAR WEAKER AGAIN (Received August 24, 7.5 p.m.) British Wireless RUGBY, Aug. 23 The following rates on foreign exchanges are current, compared with the cabled quotations on August 22 and par:— ■ Aug. 23 Aug. 22 Par Montreal, dol. .. 4.805 4.77 4.806 New York. dol. . 4.545 4.495 4.8150 Paris, fr. .. 84 5-32 84 9-32 121.21 Brussels, helga .. 23.59 23.645 35.00 Geneva, fr. 17.03 17.095 25.22 Amsterdam, fl. .. 8.16 8.17 12.10 Milan, lire .. (S2"/ ln G2 u /.„ 92.46 Berlin, r.m. .. 13.825 13.845 20.43 Stockholm, kr. .. 19.373 19.385 18.159 Copenhagen, kr. . 22.40 22.40 18.159 Oslo, kr. .. 19.90 19.90 18.159 Vienna, sch. .. 30* 301 31.555 Prague, kr. .. 111% 111% 164.25 Helsingfors, mark 22G.50 226.50 129.23 Madrid, pes. .. 39 15-32 39.50 25.221 Lisbon, escu. 309.25 109.25 110 Athens, dr. •.. 587.50 587.50 875.00 Bucharest, lei. .. 500 560 813.6 KiodeJaneiro.mil. 4%d 4%d 5.899 d Buenos Aires, dol. 42.25 d 42.25 d 47.G19d Montevideo, dol. 34df 34dl 51d Bombay, rupee . 18'/t 6 d J6 l / l6 d 18d Shanghai, dol. 15d 15d Hongkong, dol. . 16/ ed 16.75 d Yokohama, yen . 14% d 14% d 24.58 d Belgrade, din. .. 233 243 276.3 i {Nominal. CUSTOMS EXCHANGE RATES Rates of exchange ruling at tho announced dates of departure of the vessels named aro shown in the following table. They aro subject to confirmation by the Customs Department when tho exact time of departure is learned on arrival of the vessels in New Zealand, finally declared rates being marked*: — Port Fremantle, Canada, dollars . . *4.92 Port Fremantle, America, dollars . . *4.53 Melbourne Maru, Japan, yen .. 14 13-16 d Canadian Victor, Canada, dollars . . 4.81 Golden _ Eagle, _ America, dollars . . 4.50 Ilauraki, America, dollars . . . . 4.49$ Golden Rod, America, dollars .. 4.41} Aorangi, Canada, dollars .. .. 4.G7 Maunganui, Canada, dollars . . . . 4.90 Maunganui, America, dollars . . . . 4.-10 NEW ZEALAND MONEY ABROAD Current dollar exchanges, as quoted by tho Now Zealand banks, aro as under: — Buying Selling United States . . . . 4.63 4.43 Canada 4.89 4.69 Tho cost in New Zealand currency of tho pound sterling and of the principal foreign units, on the latest quotations, is as follows: — Present Price Par s <1 s (1 London, pound .. ..21 11.58 20 0.00 Australia, pound . .. 20 0.00 20 0.00 New York, dollar . E 7.65 4 1.31 Montreal, dollar .. .. 5 3.90 4 1.31 Paris, franc .. .. 0 3.55 0 1.98 Berlin, mark .. .. 1 9.67 0 11.74 Copenhagen, krone .. 1 1.38 I 1.22 Yokohama, yen . . .. 1 5.95 2 0.58 These valuations represent tho current rates at which banks sell drafts payable on demand. BROKEN lIILL PROFIT OUTPUT LARGELY INCREASED The report of the Broken Hill Proprietary Company, Limited, for the year ended May 31, throws light on the increase in net profit of £209,897 to £313,617, previously announced in the Hkrai.d, which enabled payment of dividend at 10 per cent to bo resumed. The report states that aggregate tonnages of production showed largo increases, output over three years comparing as follows: Year ended May 31 1931 1932 1933 Tons Tons Tons Pig iron . . 185,680 153,563 262.714 Steel ingots . . 210,140 195,188 320.931 A greater volume of orders was available during the year, enabling tho plant to he worked, on a better basis. Tho managing director's report states tho improvement in demand for steel products which was in evidence during the closing month's of the last financial year was maintained during tho year under review, although production was still below normal. Rylands Brothers (Australia), Limited, had an improved demand for fencing and other wire products. Regarding subsidiary and allied industries, tho directors state that, in conjunction with Messrs. Stewarts and Lloyds, it has now been decided to proceed with the erection of tho works for the manufacture of pipes and tubes. To consolidate the company's position in relation to coal supplied tho llunvood and Lambton collieries were acquired at the beginning of tho period.