MILD BOOM IN GOLD

New Zealand Herald, Volume LXX, Issue 21617, 9 October 1933, Page 5

MILD BOOM IN GOLD

POSITION IN AUSTRALIA

JUSTIFICATION QUESTIONED

Some cautious members of tlio Melbourne Stock Exchange question whether there is sufficient justification for the mild boom which has taken place in shares in goldinining companies, states the Melbourne Argus. The abnormally high price of gold has caused many old mines which had reached an unpayable condition on the old price of £4 5s an ounco'for gold to bo resurrected, and has encouraged tho flotation of many new ventures which might not have appealed to investors of a few years ago. There are now about 100 goldinining companies listed oil tho Molbourno Stock Exchange, compared with 'lO 12 months ago. The aggregate capital of the 100 companies 'is £9,000,000, including cash and fully paid shares given for leases and other assets, and approximately £50,000 is being paid monthly in calls. Naturally dividends cannot bo expected from recently formed goldmining companies, but it may bo regarded as significent that only ten goldinining companies in Australia paid dividends in tho last 12 months, of which three companies are operating in Victoria, the Argus continues. Investors do not appear to bo inclined to take anything approaching tho same risks in industrial enterprises as they aro prepared to do in mining ventures. Tho prospects of an ordinary business concern must be almost gilt-edged to attract capital, whereas "great expectations" aro a sufficient mainspring to sot a mining proposition going. While returns from goldinining may bo higher in a few exceptional cases, the risks in most instances are greater than thoso in the industrial field. If only half the money which has been spent in goldinining in tho last few years, most of which investors will never see again, had been devoted to legitimate industrial enterprises, new industries of a more permanent nature than goldinining could have been established, and others which have been struggling with inadequate capital would have been given tho means to expand and velopEXPORT OF FRUIT POOLING BY GROWERS REFERENDUM BEING TAKEN A referendum of fruitgrowers throughout tho Dominion is being hold for the purpose of ascertaining their attitude toward the practice of pooling fruit for export. Voting, which is by post, will closo to-morrow. The ballot is being conducted under the auspices of the New Zealand Fruit Export Control Board in conjunction with the New Zealand Fruitgrowers' Federation. For the past few years growers in various districts have pooled their fruit according to variety, grade and size, but such action has not beep Dominionwide. In the .Auckland Province tho practice of pooling has been in operation for several seasons. The referendum is designed to guide the Fruit Export Control Board in its future policy. GOLD AND SILVER QUOTATIONS IN LONDON (Received October 8. 5.5 p.m.) LONDON, Oct. 7 Fine gold is quoted to-day at £0 13s 4d an ounce, compared with JL6 13s lid yesterday and £0 13s B}d on Thursday. Silver was quoted yesterday at 18Ad an ounce spot and 18|d forward, same as on Thursday. The quotation for silver at per fine ounce is 19 15-16 d, same as on Thursday. The following table shows recent fluctuations in tho price of fino gold at per ounce: — £sd £ a d Sept. 20 . . 613 !) Sept. 30 . . li 13 1 Sept. 21 .. Gl2 !) Oct. 2 .. 613 5 Sept. 23 . . Gl3 51 Oct. 3 .. 014 8 Sept. 25 .. Gl2 0 Oct. 1 . 614 0 Sept. 2(5.. Gl3 2 Oct. 5 .. Gl3 81 Sept 27 .. 613 0 Oct. G .. Gl3 11 Sept. 28 . . 612 4 Oct. 7 .. 613 i SIMPSON AND WILLIAMS IMPROVEMENT IN RESULTS Simpson and Williams, Limited, booksellers, Christchurch, report improved results during tho year ended August 31. The directors recommend payment of a dividend of 7 per cent for the year, con'ipared with 6 per cent in 1932 and 8 per cent for 10 months in 1931. I MERCANTILE FINANCE PROGRESS OF LIQUIDATION The liquidator of tho Mcrcantilo Financo Corporation, Limited, Christchurch, in voluntary liquidation, announces that reWynient of preference share capital has been made in full to holders of preference shares in tho company. Voluntary liqu dation of the company was decide on by shareholders in March. The company has a paid-up capital of £19,73 5, including 3925 £1 cumulative preference shares of 7 per cent. SMELTING CORPORATION EXPANSION OF OPERATIONS (Received Oc ober 8, G. 45 p.m.) LONDON, Oct. 8 Tho Imperial Smelting Corporation has acquired the Sulphide Corporation's spelter works at Soatoii Carew, Durham. Also it has bought a share of the capital of tho Do la Villo Spelter panyTIN IN NEW YORK (Received Oc ober 8, G. 45 p.m.) NEW YORK, Oct. 7 Till (standard) October delivery, is quoted at 47.50 cents a lb., compared with 48.15 cents on October 5. WHEAT IN AMERICA (Received October 8. 5.5 p.m.) CHICAGO. Oct, 7 Wheat. —December, 8(31 cents a bushel; May, 9C'jj cents; July 891 cents. The New York quotation for cash is 943 cents.

LONDON HIDES SALES (Received October 8, 5.5 p.m.) • LONDON, Oct. 7 At the London hides sales to-day the following prices ruled: —Meatworks, dry salted: Queensland, 351b. to 451b., Gad; 301b. to 401b., (ijjd; 251b. to 351b., 6\d; 201b. to 301b., 6Jd. New South Wales, CJcl, 6j|d, fcigcl, 6sd. Wot salted: Queensland, 501b. to 601b., 4jjd; 401b. to 501b"., 4Jd. Now South Wales, s|cl, s|d. Victorian abattoirs, 5d and Cd,.