THE MINING YEAR

New Zealand Herald, Volume LXXIII, Issue 22612, 28 December 1936, Page 5

THE MINING YEAR

GOLD SHARES QUIETER PROBLEMS IN DOMINION INVESTORS DISAPPOINTED New Zealand goldmining shares played a very unimportant part in the eventful year which has just been completed on the New Zealand Stock Exchanges. Although a number of the smaller companies paid steady dividends the results of others, from which expectations bad been great, were again disappointing. These disappointments were reflected in a small turnover in New Zealand companies and a decline in the value of many of the shares. Comment upon these unfavourable aspects was made by Mr. J. W. Frater, chairman of the Auckland Exchange, at the annual meeting earlier this, month. It was a matter for regret, said Mr. Frater, that only n small proportion of tho concerns floated during the past few years had stood the test of actual operation. Schemes of operation, plans and estimates had in many instances proved hopelessly astray when actual work in tho properties was undertaken. Need for Supervision While hesitating to suggest any undue interference with private enterprise Mr. Frater considered that some form of supervision would appear to be necessary over mining propositions in order to prevent the public from being induced to invest money in ventures where there was no prospect of success from the outset. The leading New Zealand producing companies maintained their position and dividend distributions wore much on the same basis as those of previous years. Hopes of relief from the gold tax were not realised and the impost continued to absorb a substantial proportion of earnings, which had a further adverse effect upon the market. Prices for selected shares at the end of the past three years compare as follows: 103-1 1035 1030 £ s d £ s d £sd B. River 0 I 11 0 2 1 0 i> 0 Bl'kwater 1 V2 (i 1 11 (i 1 10 3 Gillespie's 0 1 ft 0 1 0 0 1 5 lv. Solomon 0 3 0 0 3 (i 0 O 8 Talisman ,0110 0 10 I 00 3 Martha WaihiJun. 0 110 o 311 o 310 Mataki . 0 1 11% 0 2 O'A 0 1 o Skippers . 0 0 7 I A 0 0 4% 0 0 3'/ a Notable features of operations were the decline of King Solomons, owing to largely-reduced returns, and the recovery in Gillespie's Beach, which over tho latter part of the year dredged some highly-payable ground from which good returns are still being secured. Proof of the potentialities of dredging in the Dominion was also provided by a number of West Coast companies, several of which-, including Argo, Worksop and Mossy Creek, paid steady dividends. A fillip to activity in this sphere was given at the close of the year by the proposed development of a Grey lliver area by tho Bimu Company. Less Vigour in Market

The Australian goldmining market lacked the vigour of the previous years and Fiji issues were not so prominent at the close as earlier in the period. Mount Morgans commanded a great deal of attention throughout the year. Early in the period they were quoted on the basis of 2s 6d paid, following the subdivision of the existing us shares and the issue of new capital at a premium of 7s 6d. The passing of the interim dividend, however, had a depressing effect and the market closed around 16s, after having fallen as low as l"2s 4d. There was also strong interest in Placers and Bulolo issues. The chief outside influence of the year was the devaluation by the gold "bloc" countries of Europe, with the following agreement between Britain, France and the United States for stabilisation of currencies. The immediate effect was that the price of gold, which had been falling, again rose to more than £7 an ounce, and goldmining shares advanced in sympathy. JHe move has done much to remove the doubt as to the future position of gold A stable price has been brought much nearer and there is good authority for the opinion that eventually stability will be reached about the current Veiling price in the market to-day.

DOLLAR GOLD CONTENT CHANGE VERY UNLIKELY. BANKING HEAD'S VIEW The former head of the Bank of International Settlements, Mr. Leon Eraser, who is now vice-president of the First National Bank of New York, said in an address at Chicago recently, that he believed the gold content ot the dollar to be definitely fixed, and that it was extremely unlikely that it would be changed. . However, it was desirable that the President's extraordinary monetary powers should be extended, ponding further progress toward world currency stabilisation. He said that among the prerequisites for international stabilisation was the removal of the danger of a runaway stock market, and one of the steps he recommended to this end was the drastic alteration of tho capital profits tax.

VICTORIA INSURANCE ISSUE

SHAREHOLDERS' APPROVAL

Shareholders ol the Victoria Insurance Company, Limited, at an extraordinary meeting in Melbourne approved of the proposal ol the directors to allot 25,000 shares of £2 each of the unissued capital at par in the proportion of one share for every lour shares held. The chairman, Mr. L. F. Miller, said that the new capital was required to meet expenditure on account of new building operations in Sydney and Melbourne. CONSOLS AND DOMINION STOCK (Received December '-'V, 5.5 p.m.) LONDON, Dec. 20 The following table gives Thursday's quotations for consols and colonial inscribed stocks, compared with those of December 19: Price Variation L s d s (I Consols, 2'/a per cent .. si 10 o Same Fund. Loan, -1, 10U0-00 IK! 10 O Same War Loan, li'A . 105 10 0 -5 O Conversion Loan, 3'j . lod 10 o -5 O Victory Bonds, -t 115 o O Same Com'wealtli, 5. KMS-75 ion 12 0 -2 <i Com'wealtli, 3',i, '3(5-37 101 o O +2 (i Com'wealtli, 1, llit.'l-tS 10l 10 0 -5 o Coai'wealth, 3-';, 'lB-53 lo.'t 7 <1 -5 O Com*wealth, 3Vi 'S(J-(il 100 o O Same Com'wealtli, .'t, 1055-58 0<! 10 O +5 O N.S.W., I Yj, 1035-15 . 100 7 (i +5 O Victorian, 3, 10'_'0--1!> . 08 15 o Same Victorian, •l>i, KMO-(i0 1(M 2 O -I 3 Victorian. 5, 1015-75 . 100 7 <i Same Queensland. 3, 1022-17 OH I"J O Same Queensland, 5, KMO-<IU 107 o 0 -2 (i S. Australia, 3, 101(1 or after .. 00 15 0 Same S. Australia. 5, 10-15-75 100 7 ft -5 o W. Australia, -.1, '.12-02 101 17 (> Same Tasmania, 3 l / 2l 1020-10 101 l() o -5 0 Tasmania, 1, 1010-50 . nil II 3 +l 3 K. Zealand, i' 4 '4B-58 107 10 o -5 0 N. Zealand, 3'/ a , 1010 JO 1 7 (> -1 3 N. Zealand, 3. 1015 .. 00 17 6 .-23 0