CRISIS AVOIDED

New Zealand Herald, Volume LXXIV, Issue 22724, 10 May 1937, Page 5

CRISIS AVOIDED

LONDON STOCK EXCHANGE

SETTLEMENT DAY SUSPENSE FIRM MARKETS FORECAST (Received May 0, 5.5 p.m.) LONDON, May 8 It is a long time since tho London Stock Exchange has passed such anxious moments as on settlement day. Toward 3 p.m.—the last moment when default could be declared —silence was almost as marked as on Armistice Day. When the bell ticked the hour there was a faint cheer as it was realised that the worst was over and that the settlement had passed without trouble. This was due a good deal to mutual help and' forbearance.

Tho immediate outlook now seems to be for firm but quiet markets. The fact that the Stock Exchange has passed successfully through two of the most difficult settlements for years within a month is considered to be a tribute to the fundamental strength of London finance.

Brokers agree that similar conditions on the Continental Bourses would have meant a temporary closing. A firm of London bankers, J. Henry Schroder, has issued a reasoned*statement declaring that it is incredible that America will reduce the gold price, which would have a devastating effect on the prices of farm products and cotton and on general business, and, moreover, if America alone deflated it would disastrously affect her export trade and increase her debt burden. Scliroders say they understand that the British Exchange Equilisation Fund, long inactive, has come to America's rescue and recently has been a substantia] buyer of gold on the London market.

TAX ON INVESTMENTS

DEBENTURE INTEREST

STEP IN NEW SOUTH WALES

A lead in the reduction of taxation payable on income from investments has been given by New South Wales. Companies in that State which pay debenture interest to residents of other States are obliged to deduct State income tax at the rate of Is 6d in the pound from the amounts payable, but this tax is legally chargeable only if the total income of the recipient from sources in New South Wales exceeds £SO.

Formerly the tax was deducted and few investors went to the trouble of applying for a refund, but now an effort is being made to stop the deductions from being made in cases in which a refund would be payable. Companies have been supplied with official forms which are to be sent to debenture holders for the making of a statement of what their income from all sources in New South Wales amounted to in the year ended June 30, 1936. If the income was less than £SO the company will pay the debenture interest without making any deduction, and the investor will not have to apply for a refund.

BANK OF ENGLAND

I . HALF-YEAR'S EARNINGS A half-yearly general Court of the Governor and Company of the Bank of England was held in London recently. The Kt. Hon. Montagu Collet Norman, the Governor, who presided, said that the profits of the half-year ended February 28, after making provision for all contingencies, were £664,967, making the amount of the "rest"' on that day £3.688.793. After providing for a dividend of 6 per cent, less tax, the "rest" would bo £3,022,993. The Court, therefore, proposed that a half-year's dividend of interest and profits should be made of £6 per cent, less tax. The proposal was approved. The dividend is at the same rate as that paid half-yearly for a number of years past. PRICES OF METALS COPPER FIRM, TIN EASIER LONDON, May 7 Following are to-day's quotations on the London metal market, compared with those of May 6: — May 7 May (j Per ton Per ton £sd £ s d Copper, stan., spot . 60 3 9 60 2 0 Copper, stan., 3 mos. 56 18 !) 56 18 9 Copper, electrolytic . 03 () 0 63 0 0 to to 65 0 0 65 0 0 Copper, elect., wiro bar . . . . 65 0 0 65 0 0 Lead, soft, spot .. 21 1 3 21 1 ft Lead, soft, forward 21 0 0 24 0 O Spelter, spot . . . 23 3 0 23 2 6 Spelter, forward . . 23 10 0 23 7 6 Tin, stan., spot . . 219 2 6 240 1 2 6 Tin, stan., 3 mos. . . 217 5 0 218 2 (j Quotations for other metals, with last week's prices in parentheses, are: Pig iron: Home trade, £4 Is'(£4 Is). Antimony: British, £BS 10s (£BB 10s); foreign, £62 (£64). Molybdenite, £2 (£2) a unit. Wolfram, £2 16s (£2 15s 6d) a unit. NEW COMPANIES REGISTRATIONS IN SOUTH .Registration of the following new Southern companies is contained in the Mercantile Gazette:— PUBLIC Waitaliiro Links, Limited (Christchurch). —Capital: £17,000 into shares of £1 each. Subscribers: Christchurch— S. G. Holland,' E. M. Macfarlane, F. T. Heaven, J. F. Cracroft Wilson, W. H. Simpson, A. R. Blank, W. J. li. Sedgley, all one share each. Adams (J. J.), Limited, drapers (Wellington).—Capital: £2OOO into 2000 shares of £1 each. Subscribers: Palrnerston —F. L. Adams, 600; J. J. Adams, 600; R. J. Adams, 500; J. F. Adams, 300. Waiapu Meat Company, Limited (Gisborne). —Capital: £IOOO, into £1 shares. Subscribers: F. Collin, 700; B. F. Collin, 100; D. E. Collin, 100; F. H. Collin, 100. Franklin (Francis), Limited, merchants (Wellington).—Capital: £6OO, into 600 shares of £1 each. Subscribers: Wellington—F. Franklin, 0. Turner, S. J. A'Court, 200 shares each. INCREASE OF CAPITAL Adams, Bruce, Limited (Wellington). —Capital increased by the addition of £16,000 into 16,0()0 ordinary shares of £1 each beyond the registered capital of £16,000. FRUIT IN LONDON NEW ZEALAND APPLES LONDON, May 7 Apples are firm and in active demand. New Zealand apples by the Hurunui and Sydney Star sold as follows: —Jonathans, lis to lis 9d. Australian Jonathans, 10s 9d to 12s 6d; Cox's, 10s 3d to 16s; Cleopatras, 10s to 12s. Pears.—Victorian Boscs, 9s 9d to lis 9d; Packhams, 10s 9d to lis 9d. !