TRADING OUTLOOK

New Zealand Herald, Volume LXXVI, Issue 23431, 22 August 1939, Page 5

TRADING OUTLOOK

BURDEN OF LEGISLATION CAPACITY FOR TAXATION MASON. STRUTHERS' YEAR "Unless the much-increased turnover can bo maintained, and this is dopendent on the ability of the people to buy and the procuration of the goods required, the company may not bo able to provide in the future for excessive taxation and a reasonable dividend," states the annual report of Mason, Struthers, Limited, hardware merchants, Christchurch, for the year ended Juno 30. "The increase in expenses referred to last year has grown again, largely owing to recent legislation, but with larger turnover it has been possible to show a higher profit than last year," adds the report. "Jn addition to a larger outlay to run the business, tho company has had to provide for the social security tax, with tho result that taxation requirements necessitate provision of £5060, this being nearly £7OO more than is required to pay a 4 per cent dividend. "The difficulties in carrying on the import side of tho business under the present restrictions have to be experienced to bo believed." The accounts show a net profit of £0698, as against £8759 in the previous year. Dividend is unchanged at 4 per cent, requiring £4-100, and £5060 is transferred to income tax reserve, leaving £239 to be carried forward.

BRITISH EXPORTS MARKETS OF EMPIRE DANGER IN CURTAILMENT FRANK WARNING UTTERED [fhom our own couukspondknt] LONDON. AUK. 1 A warning to the Dominions that, any curtailment in their markets for United Kingdom exports would not only reduce Britain's capacity and willingness to go on buying from them, but would also impair the Mother Country's strength at a time when it was vital for the Empire that that strength should bo maintained, was given by Mr. R. S. Hudson, Parliamentary Secretary to the Department of Overseas Trade, when speaking at the banquet of the Federation of Chambers of Commerce of the British Empire. Mr. Hudson also said that there were indications that certain Dominions might be led to foster industries for which they were not yet economically suited. It was to lie hoped that they could weigh carefully all the considerations before committing themselves too far on that course. "As a result of the increased confidence inspired by the Ottawa agreements," said Mr. Hudson, "coupled ! with the reduction in trade barriers, the volume and value of inter-Imperial trade have increased notably from the levels of the slump years. Secondly, the trade of foreign countries with the Empire also has risen materially above slump level. "if one looks at the cases where the Dominions have a favourable balance of trade with the United Kingdom, 0110 finds that, taking the picture as a whole, there has been a tendency for this favourable balance to increase, while the terms of trade with foreign countries have shown an opposite tendency. "At present we 111 the United Kingdom are having to face unprecedented expenditure on rearmament. One of the most important ways in which the Dominions can assist in meeting this strain is to recognise the immense advantages which their trade enjoys in the United Kingdom and to ensure by all means in their power that they continue to make it possible for the United Kingdom to buy from them, by themselves increasing the amount of their purchases from the United Kingdom."

FIJI'S TRADE ' ' FAVOURABLE BALANCE IMPORTANCE OF GOLD [from our own con respondent] SUVA. Auk. 11 A favourable trade balance of £76,593 is shown in tlio trading figures of the Colony of Fiji for the first six months of the year. Exports amounted to £873,010, against £874,041 for tlio corresponding period the previous year, but imports showed a decline from £BOI.SDO in 193S to £'790,117 for the (irst six months of 1939. During this period thero has been a decrease in exports amounting to £lO3l. The fact that there has not heeu a heavy decline in the total is due entirely to the increase in the export of bullion, which rose from £343,424 'to £430,757. Thero are decreases in the export values of sugar, copra and bananas, the three principal exports, so without gold there would havo been a heavy drop in tlio total. Gold exports for the year will bo well over £750,000. Principal exports were as follows, those for the same period of 1938 being given in parentheses:—Sugar: 25,800 tons (31,121 tons), £200,700 (£287,970). Copra: 13,383 tons (15,263 tons), £90,060 (£140,278). Bananas: 2750 bunches and 25,921 cases (9.420 bunches and 70,351 cases), £12,541 (£35,078). Molasses: £9.194 (£7857). Gold bullion: 52,6000z. (11,518oz.), £430,757 (£343,321). Trocas shell; 108 tons (52 tons), £5032 (£3002). father articles: £58,120 (£55,320).

MINING NEWS YIELDS OF COMPANIES Clntlia Dredging (Otago).—l44oz. for 121 hours. Okarito Dredging (South Westland). —l9}oz. for 1.32} hours. Gillespie's Bench (South Westland). — SSo/,. from 24,2*17 yards, Mataki Dredging (Murchison). —30oz. from 11,400 yards in 133 hours. Worksop .Extended (West Coast). — 330z. from 11,000 yards in 120 hours. THE ARAHURA DREDGE Tho Arnhtira Dredge, which commenced operations on tho West Coast of the South Island on August 2, is now digging to a depth of 03ft., but has not yet reached the main goldbearing gravel. During the first half of August the dredgo ran 183 hours, treating So,ooo cubic yards, and recovered 2020z. of smelted gold.