EXCHANGE RATES

New Zealand Herald, Volume LXXI, Issue 21966, 24 November 1934, Page 9

EXCHANGE RATES

. , . : ' V ' r " 1/ *, EFFECT IN LONDON «■ POSITION OF DALGETVS LONDON, Nov. S3 At the annual meeting of Dalgetys, Limited, Mr. Edmund W. Parker, who presided, said that since the depreciation of the Australian and New Zealand pounds, the cost of remitting funds to London for the company's general purposes had reached £304,814. " I realise," said Mr. Parker, " that the depreciation of the pound has helped the*hard-pressed primary producer, and the help afforded him has reacted favourably on the company's earningsTherefore, the money spent in remittances cannot be entirely regarded as lost. v " There is this difficulty, hpwever, that the company's capital is largely invested in financing clients' properties. This money has been borrowed hers and renamed overseas at par of exchange, or at small margins of difference. The interest rates obtainable ,on these capital sums has bgen reduced in recent years, both compulsorily and otherwise, to such a figure that it is equivalent virtually to the borrowing rato here. " Therefore it has ceased to be profitable. This affects the profits adversely and is a burden we may expect to remain for some time." WORLD'S WHEAT DECREASE IN STOCKS REVIEW OF SITUATION BUDAPEST. Nov. 22 ' The Wheat Advisory Committee, in a survey of the world : situation, says there is every reason to suppose that before August, 1935, world stocks will bo lower than at any time since 1925. It is estimated that owing to small production in Canada and the United States wheat supplies next year will total about 785,000,000 bushels, or 350,000,000 less than in 1934-35. Therefore, it is stated, there will bo a tremendous improvement in the stock position, as stocks will be reduced from. 500,000,000 bushels above normal on. August 1, 1934, to only about 150,000,000 above on August 1, 1935. , Regarding import demands!, the committee strikes a pessimistic note. It says that owing to the present policy most of the _ importing countries are protecting their wheatgrowers against foreign competition, combined with increased yields in most European coun-. tries.

There seems to be no reason to anticipate an annual European demand exceeding about 450,000,000 bushels in the next few years, while it is improbable that non-European countries will import more than 150,000,000 bushels. The French representative informed the committee that France was abandoning the minimum price system for home-grown wheat in order to narrow the difference between that price and the world export price, and to discourage overproduction. France would take energetic internal measures to increase consumption and establish a safe reserve. She was prepared to denature portion of her exports, besides regulating them. Her present surplus was ; 15,000,000 bushels. 1 A message from Paris says it is reEorted that the Government- intends to orrow 14,000,000 francs from agricultural and other internal funds to finance the exportation of surplus stocks by covering the loss on selling at the world price. The loans will be guaranteed by a milling tax. i PRICES OF METALS i AN EASIER TENDENCY (Received November 23, 8.35 p.m.) LONDON, Nov. 23 Following are to-day's quotations I on the London metal market, compared with those of November 20:— Nov. 22 , Nov. 20 Per ton Per ton. r, . £ s d £ s-d Cppper. etan., spot ..26 14 4} 27 7 6 Copper, etan., 3 mos. 27 1 10J 27 13 9 Copper, electrolytic .. 29 17 6 30 11 3 to p , . . , 30 2 6 —. Copper, elect, wire bars ,30 2 6 30 11 3 Lead, soft, spot ... 10 10 0 10 10 0 I Lead, soft, forward .. 10 10 0 10 12 6 1 Spelter, spot .. ... 11 16 3 11 16 3 Spelter, forward .. 12 0 0 12 2 6 Tin. stan.. spot .. 223 3 9 22S 13 9 Tin, etan., 3 mos. .. 223 11 3 228 16 3 RABBITSKIN SALE 1 , VALUES AT DUNEDIN Only very small quantities of rabbitskins were offered at Dunedin on Tuesday, the general quality being in keeping with the season. Competition was limited to local and speculative buying, as there were practically no overseas orders. Good bucks showed a decline on last sale of from tid to lOd, while does were firm to 2d lower, inferior sorts being almost on a par with last sale. The following was the range of prices;-—Racks and small, 2d to 3d; summers, BJd to 9d; runners, light racks, 7d to 9d; summer broken, 7£d to B£d; autumn, lOd; second winter, to 12Jd; first winter, 14d to 14fd. first winter bucks, 50d; does, Sod; second winter bucks, 35d to 37fd; does, 21d to 25Jd; outgoing bucks, 23d to 24d; does, 15d to 15-Jd; first spring bucks. 13Jd to 133 d; does, lid to llfd; second spring bucks, 9d to lOd; does, 8d to 93d; milky, BJd to lid; fawns, 9d to lid; summer black, sd; second winter black, 14d; first winter, 18d to 20d; hareskins, 4d; horsehair, 12d.