RISE IN METALS

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

RISE IN METALS

EXPANSION OF DEMAND ACTIVITY IN STOCKS SUBSTANTIAL GAINS MADE The persistent rise in the price of base metals was tlio featuro of the milling year. New Zealand is not interested as a producer in this market and to participate in the prosperity which the metals industry is enjoying the Dominion investor turned largely to Australia. Recently he has bought substantial holdings in the leading companies and in doing so lias earned a rich reward. Throughout the year the consuming demand for all the base metals has been such that producers have been unable to cope with it". Quotas, where they existed, have been expanded, but still the demand has remained unsatisfied. Influences in Market Influences in the market are the revival of industry throughout the world, combined with the decision of many nations to rearm. The result is that at the close of the year metal prices are on a substantially higher plane than 12 months ago and arc still rising. Before Christinas lead touched the highest price for seven years. Since then it has risen a further £2 a ton. Current prices of metals a ton, compared with the levels ruling a year ago and the average price for l'Jl.j are as follows: I!) 115 Year Current Average Ago Price ,C S (I i'S fl £ K (1 Cop'r (el.) 73 J! 7Va 30 •"> 0 . r >'-i 7 <> Do. (std.) <>B r, !i :u 17 <; 'l7 10 3 head (soft) is li 2 Hi 2 <> 'J7 2 (i Spelter 1-1 3 I I <> lO'i is .is !> Tin .. 4 -!oi 1.5 7 '->l7 o o •J33 -2 u The highest prices on record are as follows:- —Copper (electrolytic), £l.'S2 a ton (1920); copper (standard), £122 fis (1920); lead (soft), £53 7s Od (1920); spelter, £lls (1915); tin, £419 0920). The enhanced values of metals have already been reflected in the higher earnings of the companies engaged in their production and a consequent demand for the shares in the investment markets of Australia and New Zealand. There was a spectacular rise in the profits of the Mount Lyell company in the past year, mainly owing to the higher price of copper, and the dividend was raised from 2J- per cent to 10 per cent, while the Broken Hill companies, known in the market as Barriers, have increased their distributions handsomely over the past year or so. Share Levels Compared A comparison of the market levels for the shares of leading metal companies over the past three years is:— 1031 1035 J 036 £sil£s d £ s d Mt. Lyell o 17 8 to 3 l 18 o B.H. Stli. . :( 18 (i r> l <> *2 4 (i Nth. B.H. r, ■> o 8 3 0 *3 ir. 0 *Kuala Kamp. 013 10 015 ~ 018 0 Itawane .. o 8 l 0 8 10 0 110 Still). Corpn. i) «s 0 oil (i 0 Ifi 3 Zinc Corpn. 112 <> 312 0 710 0 •Subdivided shares.

Marked gains were made by Broken Hill South and North Broken Hill shares following proposals which were adopted to split the companies' £1 shares into four shares with a face value of 5s each. Investors were not slow to appreciate the effect that the broadening of the demand have on prices. Since the proposals were given effect to metal prices have continued the upward trend and a maintenance of the present conditions is bound to mean a substantial expansion in profits and larger distributions.

BRITAIN'S UNEMPLOYED SIGN OF REAL RECOVERY "A LOT YET TO BE DONE" "Do not think L do not recognise that the unemployment that exists to-day is a grave problem," said Mr. Stanley Baldwin, British Prime Minister, addressing a meeting of Scottish Conservatives at Glasgow last month. "Do not think that I am satisfied. Them is a lot more yet to be done before I shall be satisfied. But I will say, without fear of contradiction, that the progress that has been made shows a sign of real recovery." There was a hard core of unemployed, who for the most part had been out of work for periods, for 12 months or more, and in some cases for years. "The number that constitutes that hard core is something over 300,000," he said. "That is a problem that has boen with us for some time and one which may be with us for some time yet. No statesman, and least of all those who deal with these problems, can rest satisfied until that hard core is brought down to something that the whole country will recognise as unavoidable." Mr. Baldwin announced that the Government had decided to participate in tho Empire Exhibition, which is to be held two years hence at Bellahouston. near Glasgow, under tho auspices of the Scottish Development Council. As to the work of the National Government, they would agree that so far as home trade was concerned they had been successful to a degree that none would have dared to forecast five years ago. Tho export trade, too, had been rained; but complete and lasting recovery depended upon tho revival of international trade. "We are as yet some way from that," he added. The Government was prepared to support all well-considered attempts to bring about a reduction of tho obstacles in the wnv of international trade. As to Scotland, Mr. Baldwin instanced the recovery in the coal trade and also mentioned 'that the largest volume of warship tonnage built on the Clyde since the Armistice was not in hand.

MORE RUBBER USED UNITED STATES DEMAND In the first 10 months of this year, tlio United States consumed 173,590 tons of crude rubber, compared with 411,429 tons in the same period last year. The October figures were extremely satisfactory. Consumption of crude rubber in that month amounted to 49,509 tons, or 3000 tons more than in the previous month, and 7000 tons more than in October last year. Imports in October were down by over 7000 tons, to 40,920 tons, and stocks declined by nearly 9000 tons, to 219,553 tons. The quantity of rubber afloat to the United States increased by about 5600 tons. CALL AND DIVIDEND LIST Divirionds— Due Morris Hedstrom —int., 2Vs P-c. Dec. 81 British Tobacco—quarterly, 'J p.c. Dec. 31 1037 —Zinc Corporation halfyearly. pref., 'is a share; pref. ami ord. (partic.), '2s (id a share . . . . Jan. 1 National Bank N.Z.—int.. 2 p.c. (sterling:) . . . . . . Jan. 5 Howard Smith—pref., quarterly, Op.c. p.a. . . . . . . Jan. O G. J. Coles —quarterly, is a share Jan. 15 Woolworths, Ltd. —ord., quarterly, •J p.c. Jan. 15 Koinata Reefs—int., .'ld a sharo Jan. K1 Victoria Nyanza—3 p.c. p.a. .. Jan. 27 British Tobacco—ord., special bonus, Od a share . . . . Jan. '29

CallsDominion Breweries—new, 2s Gd a sharo .. .. . • Deo. 81 Wcllinsrton Ailuvials —con., second, 3d a sharo .. .. Feb. 24