RESERVE BANK SHARES

New Zealand Herald, Volume LXXI, Issue 21859, 23 July 1934, Page 5

RESERVE BANK SHARES

OFFICIAL QUOTATION TO-DAY DISTRIBUTION OF SCRIP Quotation of Reserve Bank of New Zealand shares will be made officially on New Zealand Stock Exchanges today, simultaneously with tho opening by the bank of its share registers to record transfers. The forms for this purpose have been received in Auckland and will be in sharebrokcrs' hands this morning.

Tho bank's shares are fully paid at £5. Private dealing for "future delivery" has recently taken place around £0 Gs. Many holdings have changed hands 011 this basis since tho allotment of shares early in March, the formal transfer having been' held in abeyance until the. machinery became available. As a result of this accumulation. a largo number of transfers is awaiting completion and the bank's share department is likely to experience an exceptionally busy period during the next few weeks. Shareholders' certificates arc now in tho course of distribution. A large number has already been received in Auckland, but many shareholders failed to surrender with their applications tho correct allotment letter, which is the formal numbered notification, and not, the interim notice. As a result, a further request has bad to be sent by the bank to those shareholders, causing a delay in the receipt of scrip. SYNTHETIC FIBRE GERMAN PROPOSITION YORKSHIRE DOUBTS SUCCESS LONDON, July 20 In spite of Germany's vast resources for the production of synthetic fibre, trade interests in London greatly doubt the practicability of replacing raw wool. Tho Yorkshire Post says traders believe Germany's main purpose is to be impressive, because she realises that nobody desires her absence from the wool markets. She is indirectly arguing for permission to buy wool at her own figure. Large-scale synthetic manufacture would involve extensive alterations of plant. These would occupy a few years before the trade cbuld be in full swing. Meanwhile Germany conkl not eliminate external supplies, in spite of her financial position, because even if Germans accepted substitutes for cloths, there would be little prospect of regaining tho export market with them. Germany requires export trade for any real return to prosperity Commenting on Germany's intention to limit her wool purchases to countries which buy from her, the paper says it doubts whether Germany is in a position to dictate, and says she will probably have to buy from countries that offer the best buying facilities.

It is nn open secret tliat Germany is already seeking. credit facilities in some of the principal wool-producing countries. Her buying influence may bo largely determined by the nature and extent of those facilities. An official of the Department of Industrial Research told a representative of the Sun news service that his Department was not aware of the existence of an artificial product that was seriously competing with wool. Modified rayons, which were very similar, lacked strength and resilience.

Nevertheless, the increasing •worldwide production of artificial silk and rayons had led«to price-cutting,. Therefore they strongly competed with all textiles.

Germany's withdrawal from the market as an emergency measure would lower wool prices sufficiently to entice her to re-enter.