METAL AGREEMENT

New Zealand Herald, Volume LXXII, Issue 22211, 11 September 1935, Page 9

METAL AGREEMENT

NEW BRITISH DUTIES VARIATION OF OTTAWA PACT HOPES FOR BETTER PRICES Australian metal producers hope that the variation of the Ottawa duties which has been made by Great Britain will lead to improved prices and marketing conditions. Under the new arrangement unwrought lead is dutiable at 7s 6d a ton and zinc is 12s 6d a ton, or at 10 per cent ad valorem, whichever is the lower. The Ottawa agreement provided for a 10 per cent duty on foreign lead and zinc imported by Great Britain, and Dominion metals were admitted duty free on the understanding that producers in the Dominions maintained adequate supplies and undertook to sell at "world price." The basis of the "world price" was agreed to be the price ruling on the London Metal, Exchange, and this understanding has given rise to the dissatisfaction felt by the industry with the whole agreement, states an Australian exchange. The duty of 10 per cent was payable on buyers' account, and the natural result of this method of collection was to depress prices of foreign metals. The preferential duty destroyed the open market almost entirely. Dominion metals were sold through agents in England, and very little of the /business transacted passed through the London Metal Exchange. The declining business of the Metal Exchange made prices less and less representative, especially as .much of the lead and zinc sold there represented distress selling orders of foreign metals. The new duties are designed to revive the London Metal Exchange, and by increasing the quantity of business handled there to ensure that its settlement prices become more truly representative of the world market price of lead and zinc. Experience has proved that the Ottawa agreements were based upon a price factor that did not survive the change in market conditions; the only chance of improving prices, therefore, appears to be to recreate market conditions that will make possible the establishment of a representative price.

STAPLE FIBRE ENGLISH DEVELOPMENT ADVANTAGES VISUALISED LONDON, Sept. 9 Staplfe fibre offers a valuable alternative for wool and cotton, and being cheaper, will increase British textile makers' competitive power abroad, says the Daily Telegraph, commenting on the removal of the excise from fibre. Mr. D. Van Someren, one of the promoters of the Staple Fibre Development Company, with a capital of £200,000, says extensive use of fibre will permit all kinds of attire to be manufactured much cheaper and on a more competitive basis. Following the removal of the excise from staple fibre, the largest ravon producers have added a cut of lid a lb., making the price lid instead of lsjd a lb. 1 In the past two years marked progress has been made in the technical improvement of short staple rayon for spinning on cotton or other textile machinery, and very important practical developments are pending with " spun ravon yarn " as the yarn made from staple fibre has come to be known. With the removal of the excise duty of 3d per lb., the price of staple fibre will be 1 highly competitive with Egyptian cotton. It is, moreover, of better appearance than cotton and is expected to have great possibilities in the dress goods and shirting trades. It can also ne used with worsted. Silk spinners are trying out the new fibre on a large scale, but its biggest scope appears to be in the cotton trade, many textile experts holding the view that in the next few years a not unimportant percentage of the raw cotton consumed in Lancashire will be replaced by staple fibre, which has the advantage of being a home-produced material. One British firm is now building a factory with an estimated output of 20,000,0001b. a year, and substantial commercial progress is expected within the next year.

LONDON MARKETS HEMP PRICES ADVANCE • The Department of Agriculture has received the following cablegram, dated September 7, from the High Commissioner for New Zealand, London: — Tallow.—The spot market is quiet, with values about unchanged. Hemp.—Manila: There is a 'strong market, and good business has been done. Prices have advanced. K grade for September-October and October-De-cember shipments sold up to £2l. Sisal: The market continues strong. Septem-ber-November shipment sold up to £2l 7s 6d. New Zealand: The market is firmer in sympathy. Small business has been done. Common grade in store is quoted at £l4 ss; rejected, for Septem-ber-October shipment, £l2 ss.

JERSEY BULL SALE FRANKLIN BREEDERS* CLUB • J \ [fbom our own correspondent! PUKEIvOHE, • Tuesday A better tone than at last year's sale prevailed at the Franklin Jersey Breeders' Club's 16th annual sale of pedigree Jersey bulls held at Pukekohe to-day. The auctioneers were the New Zealand Loan and Mercantile Agency Company, Limited, and Alfred Buckland and Sons, Limited. Competition was more general and slightlv keener. This was particularly noticeable for well-grown yearlings and two-year-old bulls suitable for dairy herds. Passings were few, 37 lots being sold before the first passing. ( Of the 95 bulls catalogued 23 were withdrawn or passed. The average price for the sale was almost lljgns, which compares very favourably with last year's average of just under B}gns. .Two bulls each realised the top price of 2Ggns. A yearlincr bull from Mr. C. A. Willis, Pukekohe, Brentwood Nobleman, was purchased by Mr. T. D. Warden, Whitianga. This was a splendid bull, with an outstanding body, showing fine constitution and quality. The other bull to reach Ofigns., Mt. Kowhai Successor, sold by Mrs. J. Peoples, Drury, and bought by Mr. W. B. Carter, Waerenga, was two months older and particularly well grown It came, forward in splendid sale condition. Other bulls which sold at figures of logns and over were as follows:—Brentwood Raleigh. 11 months, 24gns, sold by Mr. C. A. Willis, bought by Mr. H. L. Gray, Tunkau; Maple Young Majesty. 21 months, 2'gns, sold by Mr. J. H. Sherrard, Otaua, bought by Mr. J. Cummings, Mangatangi; Brentwood Marvel, nine months, 21gns, sold by Mr. Willis, bought 'by Mr. T. H. Walker, Karaka; Tyrone Golden Lad, 18 months, 21gns, sold by Mr. R. J. Johnston. Runriman, bought by Mr. G. Pullar. Paeroa; Tyrone Challenger Count, 13 months, 21gns, sold by Mr. Johnston, bought by Mr. D. L. Nathan, Manurewn; Brookfields Lucky Boy, 11 months, 21gns, sold by Mr. W. Craig, Waiuku, bought by Mr. A. Kidd, Wniuku; Len of Tauwhare, 22 months. 17gns, sold by Messrs. C. G. and F. C. Aickin, Woodhill, bought by Mr. A. J. Melville. Buckland; Les of Tauwhare, 23 months, 16jgns, sold by Messrs Airkin. bought by Mr. A. McCullough. Glenbrook; Wattle Grove Sultan, 13 months, 16gns. sold by Mr. W. Robinson, Patumahoe, bought by Mr. R. Thorpe. Ramarnma: Edparley Mark Twain, two years, logns, sofd by Mr. T. A. Millear, Tuakau, bought by Mi. G. W. Hickie, Waiuku: Mac of Tauwhare, 23 months, logns. sold by Messrs. Aickin, bought by Mr C. R. Fulton, Puni; Wattle Grove High Jinks, 14 months logns, eold by Mr. Robinson, bought by Messrs. 2sichoil Brothers, Waipipi.