GREY AND MENZIES, LTD.

New Zealand Herald, Volume LXXI, Issue 21885, 22 August 1934, Page 7

GREY AND MENZIES, LTD.

IMPROVEMENT IN RESULTS PREFERENCE DIVIDEND PAID Increased profits aro shown by Grey and Mcn/.ics, Limited, in tho accounts for the year ended Juno 30. Net earnings for the year amount to £557, as against £224 in the preceding year, and a loss of £1290 in 1932. Tho profit, added to the amount brought forward from last year, provides a balance of £B7B. From this the directors recommend tho payment of tho 1932 preference dividend, absorbing £350, leaving a balance of £528 to bo carried forward. Tho directors' report expresses regret that a loss was again made by the company's subsidiary. This has been placed to tho debit of tho profit and loss account of that company. Aftor tho payment of tho dividend recommended, preference dividends remain in arrears for 1933 and 1934. Tho amount totals £560 after tho statutory reduction is mado. Tho loss suffered by tho company in the death of tho late chairman, Mr. A. B. Roborton, is referred to by the directors. The vacancy on tho board was filled by the. appointment of Mr. R. R. Monzies, jun. The retiring directors, Messrs. T. B. Clay and 11. R. Menzies, are offering themselves for re-election. Following are details of tho company's results and appropriations for tho last three years:— 1932 1933 1034 Brought forward . . £'1387 £97 £'32l Net profit .. .. 1290* 224 557 £97 £321 £B7B Dividend ' I'rof.. p.c. .. Amount .. .. £97 £321 £528 *Loes. -tArrenrs of pref. dividend lor 1932. The company's paid capital remains unchanged at £30,488, made up of 10,000 preference and 50,976 ordinary shares of 10s each. Reserves at £1165 remain unaltered, while bad debts reserve has been increased to £3OO from £2OO. Sundrv creditors aro £1505, as against £1707 last year. The item mortgage is £IOO lower at £4700. There has been little movement in assets, which stand at £39,037, as against £38,682 last year, the principal increase being in the cash and bank deposit items, which have risen from £lB2 to £IOB7. FARMERS' CO-OPERATIVE NET PROFIT OF £4534 DIVIDEND ON PREFERENCE [BY TELEGRAPH—OWN CORRESPONDENT] WHANGAREI. Tuesday A net profit of £4534 was earned by the North Auckland Farmers' Co-opera-tive, Limited, in the year ended June 30. Tho profit was struck after providing for depreciation of premises and plant and making provision for bad and doubtful debts. It compares with a profit of £l4B in the previous year and a loss of £2354 in 1932. With £285 brought into the accounts thero is £4819 available. Out of this provision has to be made for income tax. The directors recommend payment of a dividend at tho rate of 5 per cent on preference shares for tho year ended June 30, the balance to be carried forward. Tho following retiring directors. Messrs. F. Holder, G. H. Masfen, R. McCarroll and J. G. Ritchie, aro eligible for re-election.

Paid capital is £97,198, _ comprising 10,000 A preference and 75,000 B preference shares of £1 each and 59,707 ordinary shares of 8s each. Preference dividends of 6 per cent were paid up to 1930, but no distribution has been made since. Losses accumulated since 1920-21 were eliminated by a reduction of ordinary capital in 1925.

EXCHANGE POLICY ASSISTANCE OF STABILITY LONDON PAPER'S COMMENT In a comment upon tlio decision of the Bescrve Bank of New Zealand to retain the exchange on London at the existing rate, the London Times stated that the soundness of this decision, no doubt determined in consultation with the Government, was not open to question, for stability of exchange was essential to trade activity. "The present rate," the Times proceeds, "has been in operation for a sufficient period for many of the necessary adjustments to bo made, and although the big rise in the prico of wool and the reduction in imports have helped to build up New Zealand's external resources tho position is not quite* as strong as it was owing to the recent reaction in wool prices, which is largely the consequence of the German restrictions." Speaking of tho freedom of the trading banks to formulate their own exchange policy and to fix their own buying and selling rates for London funds, tho Times stated that these rates obviously would not deviate much, if at all, from the official rate unless the official rate, owing to unforeseen circumstances, becamo completely out -of touch with the market. That had frequently happened in those countries utoich liad attempted to fix an artificially high rate for their currency. It had called into being a "black market in which tho currency changed hands at a lowef figure. The only real objection to tho artificial fixing of exchange arose when the rate was out of touch with economic realities. Generally countries with artificial rates of that kind had to impose such severe restrictions upon business that it was doubtful whether the gain, sufch as it might be, was commensurate with the loss of trado involved. Exchange restrictions would be unnecessary if countries were prepared to face the facts of their economic situation and to allow the solution of their difficulties to be found in the free play of exchange. BRITISH WAR LOAN

(Received August 21, 5.45 p.m.) British Wireless RUGBY. August 20 War Loan, 3J per cent, is quoted to-day at £lO4 8s 9d, same as on August 17.