FUNDS IN LONDON

New Zealand Herald, Volume LXXVII, Issue 23599, 7 March 1940, Page 5

FUNDS IN LONDON

REPATRIATING DEBT A METHOD OF DISPOSAL Discussing the possible repatriation of debt arising out of war conditions, of which mention was made in a cabled message published recently, the Economist, London, stated the volume . of optional redemptions of Dominions' loans which begin to operate in 1910 should give a useful lever to those in charge of Imperial monetary policy. It is evident, the journal says, that under war conditions, there will ho a tendency for the Dominions and colonies to accumulate large London balances. Britain's passive balance with such countries and the United States will be somewhat neutralised by Empire exports of gold, rubber, tin, wool, and other primary commodities. These exports will in turn find a counterpart in increased Empire sterling assets. Many reasons could bo pleaded for using part of these accumulating liquid assets to reduce the long-term debts owing by the Empire countries to British bondholders.

It would, the journal adds, firstly, tend to avoid unwieklly inflation of Empire assets; secondly, it would make resources available in Britain for investment; and, finally, it would provide an excellent opportunity for certain Dominions, which formerly were inclined to overborrow externally, to replace overseas by domestic debts. PREFERENCE SHARES MORE FAVOUR WITH INVESTORS There has been evidence lately of preference shares coming more into favour with investors. Improvement in prices has synchronised with the continuous decline in the past few months of the average redemption return on gilt-edged investments. This class of share, it is recalled by the Sydney Stock Exchange .Research and Statistical Bureau, in its weekly economic review, did not react as strongly as ordinary shares to tho buoyant conditions of the pre-depression period. The index of ordinary shares in 1929 moved to a peak at 121.39 (taking the average of 193-1 as the base of 100), whereas preference shares in that year reached a maximum index of 82.13. They maintained their stability, however, better than ordinary shares during the depression. In March, 1938, preference share values reached their second highest point on record in 10 years or more at 106.2, and they remained at a high level until after the international crisis late in 1938. Signs of recovery were exhibited early in 1939, only to be obliterated bj r another war scare, and again in July, but that also ended suddenly when war became imminent, and the decline was strongly marked until November. Preference share values then reached their lowest general level, with the index down to 90.59, than in any other month since December, 1933.

M.K. MANUFACTURERS SATISFACTORY BUSINESS Detailing the past year's operations at the annual meeting of M.K. Manufacturers, Limited, yesterday, the chairman, Mr. J. C. Whitney, said the company had been handicapped at the beginning of the year bj' a substantial loss.

Temporary disorganisation followed the move to the new premises, but during June production returned to normal. The effect of the reorganisation later became apparent, and the company was able to produce more economically and in greater volume than in the old premises. War reduced business during September and October, but sales picked up in November and continued to be satisfactory until the end of the year. Messrs. G. S. Jackson and C. Sine], general manager, were elected directors.

I THAMES SCHOOL OF MINES POSITION OF FINANCES [BY TELEGRAPH —OWN CORRESPONDENT.] THAMES, Wednesday The Thames School of Mines hns received the financial •statement for the period February o to .March 4, which showed that in tho experimental plant income was £24 and expenditure £2O, for the assay and analytical department £32 and £27, and the School of Mines £27 and £37. The director reported that during tlio period 126 assays had been put through, and six parcels of ore had been treated for a return of 600z., valued at £320.

MINING FOR CINNABAR ACTIVITY AT PUHIPUHI [BY TELEGRAPH —OWN CORRESPONDENT.] WHANGAREI, Wednesday An Auckland syndicate has obtained mining rights over a wide area of tho cinnabar reef at Puhiptthi, which is one of the few mercury-bearing deposits in the British Empire. Mercury is of vital importance for munitions, and in the past few months tho prico lias risen considerably. In previous years tho reef was worked by tunnelling, but tho surface covering of earth is now being removed by means of an excavator.

COPRA TRADE IN FIJI SHIPPING NOT AVAILABLE [from our own correspondent] SUVA, Feb. 20 Inability to secure ships for the carriage of copra to English markets is causing concern among Fiji merchants and copra producers. Shortly after the outbreak of war the Imperial Government agreed to purchase Fiji copra at £l2 10s a ton, London, which gave local producers £5 10s on the wharf at Suva. Since then, however, the local price has decreased to £5 5s as a result of freight increases. Extreme difficulty in securing ships is now being experienced, and there is every possibility that merchants, with their stores already full, will stop buying. The position is regarded very seriously. The copra industry is already in a very poor state following several years of very low prices.

BOBBY CALF TRADE WHANGAREI POOL'S ACTIVITY [from our own correspondent] WHANGAREI, Wednesday Reporting to the annual meeting of the Whangarei Bobby Calf Pool the chairman, Mr. E. S. Tremaine, said that during the season just closed the pool had handled 13,744 calves, which was 1623 over the previous season's total. The average net payments had been Ss (i.-llOd and the average weight was GO. 1221b., 2.4221b. better than last season.

The following committee was elected: Messrs. E. Woolhouse, L. Dyer, C. T Flyger, J. Steedman, R. B. Howie, O. S. Price and C. E. Cotton.