DIRECTION OF TRADE

New Zealand Herald, Volume LXXV, Issue 23130, 31 August 1938, Page 9

DIRECTION OF TRADE

SIX MONTHS' RETURNS EFFECT OF WOOL PRICES LARGER SALES TO BRITAIN Substantially lower prices for exports of wool, together with an all-round increase in imports of all. merchandise, affected overseas trade figures in the first half of this year. Shipments of wool for the six months aggregated only £9,080,302, compared with £16,329,787 in the same period of last year.

This sharp decline was reflected in the total value of exports, which, at £37,306,891, was £1,793,406 lower than last year. 011 the other hand, imports during the period rose by £1,381,911 to £27,109,312, leaving the favourable balance of trade at £10,197,579, a decrease of over £6,000,000. The rising trend of imports appears to have been checked, for the value in June was the lowest for any month since July, 1936. Movements in the apparent balance of trade with overseas countries in the first six months of the past three years are as follows, expressed in £OOO, New Zealand currency:—

3038 1037 1030 JL' 000 £OOO £OOO U.K. .. +IB,OIO +10,005 +IO,BOB Canada .. - ] -052 -010 Australia . . -'J,HOT -2,000 -1,201 Empire .. +13,102 +13,227 +13,860 Belgium . . -32 +3O-1 +3lO Franco .. +712 + 751 +l.-170 Germany . . +3ll +228 -70 Japan . . -44 +2,002 +O7O East Indies -010 -1,001 -001 U.S.A. .. —2,580 +83l Foreign . . -3,120 +3,000 +502 Total .. +IO,IOB +10,371 +11,370 Trade with Empire countries has not suffered as badly as that with foreign countries, but this is mainly due to larger purchases from the United Kingdom. Exports to Britain have grown in value from £26,552,245 in the first half of 1936 to £31,165,955 this year. This is probably a reflection of higher prices for butter, cheese and most classes of meat. , The trend of trade with Australia and Canada has been in the opposite direction. Steadily increasing imports of manufactured goods have been responsible for a rapid increase in New Zealand's adverse balance. It is significant that out of 18 Empire countries which trade with New Zealand, only three, Britain, Tonga and British West Indies, show favourable balances. The importance of Japan as a wool buyer is strongly illustrated by the conversion of a favourable balance of over £2,000,000 in the first half of 1937 to an adverse one this year. Exports during tho period have fallen from £2,733,102 to £521,233. Similar factors have operated in trade with the United States. BROKEN HILL SOUTH NET PROFIT OF £402,501 A SUBSTANTIAL DECLINE [BY TELECRAPH —PRESS ASSOCIATION] WELLINGTON, Tuesday The New Zealand Stock Exchange Association has received cabled advice that Broken Hill South, Limited, Melbourne, earned a not profit for tho year ended June 30 of £102,501. Net earnings show a substantial drop on the previous year's profit of £768.316, which was the highest in tho history of the company. The net profit ill 1936 was £486,197. Shares in the company have recently fallen 011 New Zealand exchanges. From about 35s in the middle of July, they have dropped to 29s 6d, compared -with 48s at the same time last year. Tho shares are ss, having been divided from the original face value of £].

BRITISH TOBACCO COMPANY

USUAL QUARTERLY DIVIDEND

[BY TELEGRAPH PRESS ASSOCIATION]

WELLINGTON. Tuesday

The directors of the British Tobacco Company (Australia), Limited, have declared the'usual quarterly dividend of 2 per cent, payable on September 30. COMMON, SIIELTON AND CO. NET PROFIT £448 LOWER [by TELEGRAPH —OWN correspondent] CISBORNE, Tuesday A reduction in net profit compared with the previous year is disclosed in the annual report and balance-sheet of Common, Shelton and Company, Limited, storekeepers. The directors recommend the payment of a dividend at the unchanged rate of 5 per cent. Expenses for the year, £32,566, compare with £29,633 in tho previous year. The increase was mainly due to higher salaries and wages, which amounted • to £17,030, as against £14,493 in the previous year. The net profit, £3579, is £448 less than last year. With £694 brought forward from tho previous year, "the total amount available for distribution is £1273, which the directors recommend should bo allocated as follows:—Payment of dividend, £1780; transfer to reserves, £2000; carry forward, £493. HUME PIPE COMPANY GOOD. PROFIT FORECAST Shareholders in Hume Pipe (Australia), Limited, passed resolutions at an extraordinary, meeting in Melbourne recentlv increasing the nominal capital from £500.000 to £1.000,000. The chairman, Senator MeLachlan, informed shareholders that the affairs of HMmo Pipe (Australia), Limited, were in a better state than over before. Although prices were 50 per cent lower than in 1929, turnover was larger than in that year, and tho profit f0r.1937-38 would not be far behind that of 1936-37, which was a record. Referring to the business of Hume Steel, Limited, a largo portion of the ordinary capital of which is held by Hume Pipe (Australia), Limited, Senator McLachlan said that the company's products were now being sold in India, England and Japan, and all these extensions would ultimately benefit Hume Pipe (Australia), Limited. The directors of Hume Steel might require more capital in the near future, Senator .McLachlan added, but it was expected that this would be raised by a debenture issue rather than by tho issue of further shares. J CITY PROPERTY SALE HOBSON STREET BUILDING The brick building at 91 Hobson Street, City, formerly occupied by the International Harvester Company, of New Zealand, Limited, has been bought by Claudp Neon Lights of Now Zealand, Limited. The building, which stands on a freehold property with a 58ft. frontage and a depth of 195 ft. has a floor space of approximately 15.000 square feet The price paid is not disclosed. The sale was negotiated through the agency of Neville Newcombe, Limited.