GOVERNMENT LOANS

New Zealand Herald, Volume LXXII, Issue 22179, 5 August 1935, Page 5

GOVERNMENT LOANS

EFFECT UPON INDUSTRY DIVERSION OF CAPITAL HIGHER INTEREST RATES The effect of Government borrowing upon investment generally is discussed by a Melbourne firm of stockbrokers in commenting oil the tinder-subscrip-tion of the recent £12,500,000 Australian loan. " Money available for Governments, municipal authorities, industry and for building depends almost entirely on the capital accumulations of the past and the yearly addition of the national income," states the circular. " Should Governments take more than their share of this available capital, that available for the expansion of industry, both primary and secondary, must be curtailed. This must inevitably bring about an increase in interest rates. Thus, if Governments insist on following a programme of extensive developmental works, it seems inevitable that they must bo prepared to pay higher rates for future loans. " In the past few years the money market has been called upon to supply considerable capital to the goldmining industry. This demand for capital has not yet been satisfied, as very many companies are in the developmental stage and will be making calls from time to time. There are growing indications that industry is expanding and that the demand on capital from this source is likely to increase. Should it eoirtc to pass that a world-wide recovery in trade is seen in the comparatively near future, it is likely, not only that industry will carry heavier stocks, but that each unit of stock will cost more and thus many companies to-day with credit balances will be forced once again to rely on bank overdrafts for trading purposes. " In countries where heavy Government expenditure for developmental works is more or less essential, where industry under the policy of ' protection ' has every incentive to expand, and where there are no great accumulations of unproductive capital, it is quite conceivable that interest rates could harden considerably in a very short space of time." BROKEN HILL PROFIT SHARP INCREASE SHOWN DEPRECIATION PROVISION [by telegraph —PRESS association] WELLIXGTOX, Saturday The Broken Hill Proprietary, Limited, Melbourne, reports that, subject to audit, the net profit for the year ended May 31 is £670,442, after providing £541,949 for depreciation and £26,241 for debenture interest. The profit is an increase of £242,855 on the amount earned in the previous year. Dividends of 10 per cent have been paid in the past two financial years, but previous to that there had "been no payment since 1929. The provision for depreciation is £133,971 higher, while debenture interest has been reduced by £3450. NEW COMPANIES AUCKLAND REGISTRATIONS The following private companies have been registered in Auckland: — , The Colonial Finance Company, Limited. Capital, £1623 in £1 shares. Subscribers: Janet Caroline Ewen, Margaret Victoria Reid and L. E. A\. Wood, 541 shares each. Magnet Syndicate, Limited, mining concern. Capital, £BOO in £1 shares. Subscribers: J. M. Treadaway, 400 shares; Hallyburton-Johnstone and H. L. Morton, 150 each; F. W. Herbert and A. L. Anderson, 50 each. REGISTRATIONS IN SOUTH Registration of the following southern companies is notified in the Mercantile Gazette: — PUBLIC Vega Batteries, Limited, battery manufacturers, Christchurch. Capital: £7OOO in 7000 shares of £1 each. Subscribers: Christchurch —W. It. Honey, 100; E. G. Moor, 100; W. J. Le Cren, 100; G. W. Hargreaves, 100; E. F. Vincent, 10; E. Preece. 10; J. K. Burtt, 100. South Island Finance Corporation, Limited, promoters and financial agents, Christchurch. Capital: £IO,OOO in 10,000 shares of £1 each. Subscribers: Christchurch —T. \V. A. Stringer, 100, C. .1. Gray, 100; E. G. Moor, 100; J." Gilmore, 100; E. T. Layburn, 20; AY. W. McClelland, 50; G. Tinney, 10. Winchester Lime Company, Limited, lime manufacturers, Dunedin. Capital: £15,000 in 15,000 shares of £l. Subscribers: Winchester —G. V. Gudsell, 250; W. L. Gudsell, 250; F. Charles, 100. Dunedin —S. I*. Burns, 250; D. H. Hastings, 100; G. V. Murdoch, 10; C. B. Meikle, 10 PRIVATE Smith (F. W.), Limited, grocers, Wellington. Capital: £SOOO in 5000 shares of £1 each. Subscribers: Featherston —F. W. Smith, 4500; Ethel A. Smith, 500. Neville's, Limited, cake and ice cream manufacturers, New Plymouth. Capital: £2OOO in shares of £l. Subscribers: New Plymouth—M. Neville, 1800; 31. B. Neville, 200. Williams' Garage (Wanganui), Limited, garage proprietors, Wanganui. Capital: £3OOO in 3000 shares of £1 each. Subscribers: Wanganui—E. w. Williams. 2999; Dorothy N. Wil; liains, 1. (N.Z.), Limited, Wellington. Capital: £2OOO in 2000 shares of £1 each. Subscribers: Wellington—B. Paris, 1200; A. B. Hamilton, 400; J. Prico, £4OO. Objects: To acquire rights to certain patents. Heskett Slag Fertiliser Process, Limited, fertiliser manufacturers, Onakaka. Capital: £SOOO in 5000 shares of £1 each. Subscribers: Onakaka —J. A, Heskett, .'1000; O. II Johns, 1600; A. J. Evans, 250; N. P. Livingston, 150. • Hitehon's, Limited, bacon curcrs, Milton. Capital: £7OOO in 7000 shares of £1 each. Subscribers: Milton —W. H. Hitchon, 6999; C. H. Hitchon. 1. ' WHEAT IN AMERICA (Received August 4, 5.5 p.m.) CHICAGO, Aug. 3 Wheat. —September, 99J cents a bushel; December, 91J cents; May, 93i cents. The New York price for cash is 1 dollar 13i cents. WHOLESALE EGG PRICES Wholesale egg prices in Auckland are as follows: —Hen, first grade, Is 3Jd a dozen; B grade, Is 2§d; C grade, Is OJd; duck, Is 3jd, la 2£d and Is Ojd,