GOLD EXPORT TAX

New Zealand Herald, Volume LXXII, Issue 22145, 26 June 1935, Page 7

GOLD EXPORT TAX

BURDEN ON INDUSTRY RESTRICTING PRODUCTION PROFIT MARGIN REDUCED Reference to the inequalities of the New Zealand gold export tax is made by Mr. F. G. Pratten, chairman of directors of Alluvial Tin (Australia), Limited, Sydney, which is interested in the Barrytown Gold Dredging Company, Limited, West Coast, in a letter to an Auckland resident. After agreeing with the arguments set out in a recent leading article in the Hkrauj and by Lieutenant-Colonel E. H. L. Beddington, chairman of directors of the Waihi Gold Mining Company, Limited, in his address to shareholders, Mr. Pratten states that there is no doubt the tax narrows the margin of profitable mining in New Zealand and makes the exploitation of lower grade properties almost impossible. His company had spent about £50,000 in the Dominion during the past two years in boring and making expert investigations, by which it had been proved that there were millions of yards of dredgeable lands containing gold. However, with the export tax and income tax they were too low-grade to attract the necessary capital. " I would not suggest that the income tax be lifted as in Australia," he writes. " The companies which are making profits should contribute to the revenue, but the gold export tax penalises the low grade producers and makes it almost impossible for them to earn a profit." Commercial agents were being sent from Australia to all parts of the world to foster the sale of primary products, but the great asset in gold bearing lands was to a large measure being neglected, although not to the same extent as in New Zealand, ho writes. There was enough undeveloped gold in New Zealand to pay the national debt. Investigations of Dominion gold deposits were not conducted with anything like the thoroughness and scientific care given to fat lambs and beef, hut these things were not wanted overseas, whereas America was willing to buy any quantity of gold at 35 dollars an ounce. " We need no trade representatives to sell gold, which is the only product exported by Australia and New Zealand which the world will take_ without a quota," he concludes. " Yet in New Zealand people are charged 12s 6d an ounce for the privilege of producing this gold, whether to do so is profitable or otherwise. I realise there are many difficulties, but every facility should be given to the recovery of gold and the whole country should be mobilised and reorganised for its production."

WOOL ODDMENT SALE GISBORNE VALUES IMPROVE OVERSEAS BUYERS OPERATE [bt telegraph —owx correspondent] GISBORNE, Tuesday A sale of wool oddments, sheepskins and hides was held in Gisborne to-day. Fifteen buyers were present, including nine from outside the district, representing overseas buyers. Bidding was brisk and a good clearance was effected. The offering comprised 1180 bales of crutchings and "wool, 9100 bales of sheepskins and 230 bales of hides. Wool prices were to Id per lb. in advance of those realised at the closing sale last season. GOOD BRISBANE SALE BRISBANE, June 25 At the Brisbane wool sale to-day good and average descriptions were from par to 5 per cent higher than at the last sale. Top prices were: —Greasy, 19d; scoured, 27id. BRADFORD TOPS MARKET LONDON. June 24 The Bradford tops market is very firm. Sixty-fours are quoted at 28£. Business is small however. AUSTRALIAN EXCHANGES YESTERDAY'S BUSINESS (Received June 25, 7.35 p.m.) SYDNEY. June 25 On the Sydney Stock Exchange to-day the investment market retained a fa'.rly firm tone, but investors showed a disposition to mark time pending the result of the Commonwealth loan, which closes to-day. This morning's sales included:—Commonwealth bonds —3} per cent, 1948, £99 10s; 3J per cent, 1942, £lOl 17s 6d; 4 per cent, 1938, £lOl 15s; 1941, £lO3 ss; 1944, £lO4 lis 3d; 1950, £lO6 17s 6d. Bank of Australasia, £ll 3s; Tooth's Brewery, 56s 6d; Anthony Hordern, 18s 10 J 2 d, ditto (pref.), 23s 3d; Broken Hill Proprietary, 59s 6d; Dunlop Perdriau, 16s 4Jd; ditto (pref.), 33s 3d; Fairymead Sugar, 40s; James Stedman, 17s 9d; Morris Hedstrom, 21s 10{d; Wilcox Mofi'lin, 10s lid. Later sales included: —Bank of New South Wales, £3l 15s; Bank of Australasia, £ll 3s; Colonial Sugar, £44 2s 6d; Associated News, 245; Australian Gas, A and B shares, £8 3s; British Tobacco, 39s 3d; Tooth's Brewery, 55s 3d; Toohey's Brewery, 29s 9(1; Drug Houses of Australia, 26s 6d; General Industries, 20s; Morris Hedstrom, 21s 10J(1; Anthony Hordern, 18s lOJd; Standard Cement, 23s lid; Automatic Totalisators, 19s 6d; Mount Lvell, 18s 6d; Broken Hill Proprietary, 59s 3d; Malim Nawar, 18s 6d; Placer Development, £3O 12s 6d; Tanah Biji, 14s 6d. Melbourne sales included:—Commercial Bank of Australia, 16s; ditto (pref.), £9 12s; E. S. and A. Bank, £5 Is; National Bank (£'o paid), £6 ss; Gordon and Gotch, 45s 6d; Nestles (pref.), 38s 3d; Goldsbrough, Mort 30s.

BRITISH WAR LOAN (Received June 25, 6.5 p.m.) British "Wireless RUGBY, June 24 War loan, 3} per cent, is quoted today at £lO6, same as on Juno 20. CALL AND DIVIDEND LIST Dividends— Due Australian Glass—final, otd., 8 l>.c.; prof 4J p.e To-day Farmers' Trading—ord., 5 p.c. To-day Talisman Dubbo—int., Gd a share . . .. . . .. To-morrow • North Broken Hill—int., Is Cd a share, and bonus, Is ft share June 28 Goldsbrongh-Mort—final, 4 p.c. June 28 Waihi Junction—4d a share .. June 28 British Tobacco—quarterly, 1J p.c. June 29 Morris Hedatrom—final, 3 p.c. June 30 Woohvorths (N.Z.) —int., ord., 10 p.c .. . . July 1 Woohvorths (Sydney)—int., quarterly, 2 p.c July 1 Zinc Corporation—final, participating ord. and pref., ]s a share and int. pref., 2s a "bare July 1 Queensland Insurance—int., 8 P.O. p.a. July 1 Bulolo—int., 1 dollar 20 cents (about 5s lOd) a share .. July 9 Placer—int., 2 dollars 40 cents (about lis 8d) a share . . July 9 Mt Morgan—int., quarterly, 6d a share July 10 Nat. Bank N.Z.—final, 4 p.c. >t „ p-( L July 18 Tn.Z. Breweries—final, 3$ p.e... July Dominion Rubber—int., 3 p.c...