COMMERCIAL

New Zealand Herald, Volume 80, Issue 24538, 22 March 1943, Page 5

COMMERCIAL

POST-WAR FINANCE GOLD ESSENTIAL MEDIUM Lingering doubts on the monetary function of gold after the war are being dispelled, if not eliminated, says a London message. From widespread speculation in financial circles on recent currency discussions, there has emerged a fairly clearly defined pattern, which assigns to gold an important place in post-war mechanism for clearing debts between countries. Agreement is far from imminent, but, according io reliable reports, the view seems to be generally accented that various currencies will be valued and related in terms or gold. Well-informed City quarters speak, of two principal plans, one emanating from the British Treasury, and credited to Lord Kevnes, the other coming from the United States Treasury. It is understood that the American plan provides for an international unit of account based on gold, and named "Bancor." This new fictional gold unit, or completely new international gold exchange standard, would be n erel.v a convenient yardstick for expressing exchange values of currencies participating in a clearing agreement. Respective countries would continue to use their own currencies in their own clearing accounts. According to informed opinion, a new international bank would be established with Its main offices in London and New York, to provide machinery for the ultimate clearance' of international payments for meeting deficits, and for allowing the clearing of overdrafts in terms of "Bancors." It is suggested that a country with an excess of imports would he able' to overdraw only to a limit based on its pre-war trade, while a country with an excess of exports would, likewise, have a limit for its "Bancor" credit. Among the conditions necessary for the working of the scheme would be the willingness of the participating countries to sacrifice some Of their autonomy in monetary affairs. The London Stock Exchange has shown Its appreciation of the rumoured scheme for retaining gold as international currency by staging a small boom in Kaffirs, mainly undftr pressure of Johannesburg orders. Among other interesting market features last week was a series of rises in far eastern issues, including Japanese bonds, which were marked up on the reasoning that the prospect of resumption of debt payments would be brought nearer by the early defeat of Japan, concerning which City hopes have been hrightened by recent events in the Pacific. RESERVE BANK RETURN

BONDS HOSIERY MILLS The accounts of Bonds Hosiery Mills (N.Z.) for the year ended January 19 show a net profit of £'7349, compared with £6666 in the previous year and £OISB in 1941. With £2522 brought forward, there was a credit balance of £9871. From this £2OOO was transferred to general reserve, which now stands at £7OOO. As already announced, the directors recommend an unchanged dividend of 10 per cent. This requires £SOOO, lea vine £2871 to be carried forward. The report states that sales for the year were maintained, hut an increasing drain on the company's skilled personnel was having a detrimental effect upon production. Under existing circumstances, continuation of recent expansion could not be looked for. The position in regard to the supply of raw materials was a little better. The retiring director, Mr. Stronacb Paterson, is nominated for re-election. FOREIGN EXCHANGES Closing telegraphic rates for purchases and sales of foreign exchange Auckland on overseas centres on Saturday were supplied by the Bank of New South Wales as follows; — March 20 T.T. T.T. Buying Selling New York, dol. to £ . . 3.2542 3.2050 Montreal, dol. to £ .. 3.6039 3.5290 India, pence to rupee .. 22 3-16 22 3 /J Ceylon, pence to rupee . 22 3-16 22% S.A., £N.Z. £S A. JOO 123 125/2/6 London. £N.Z. i'st. 100 124/7/6 125 Australia. £A. £N.Z. 100 100/10/- 100 Fiji, £F. £N.Z. 100 . . 90 SS/12/6 CALL AND DIVIDEND LIST Dividends— Due Bank A'asia—final, 3/6 (less British income tax, 6/- in £) . . Mch. 26 Huddart-Parker —final, pref., 3 p.c.; ord., 7 p.c. .. .. Mch. 27 Yarra Falls—int., 3 3 A p.c. .. Mch. 27 Bonds Hosiery—lop.c. .. .. Mch. 30 British Tobacco—quarterly, 2 p.c. Mch. 31 Dunlop—int., pref., 5 p.c.; ord., 2% p.c. . . . . . Mch. 31 Hume Pipe (Aust.) —int., pref., 3 3 / 4 p.c. . . . . .. Mch. 31 Huddart-Parker —final, pref., 3 p.c.; ord., 7 p.c. . . . . Mch. Woolpack and Textiles—A and B shares. 4 p.c. . . .. Mch. Milne and Clioyce—int.. 6 p.c. p a., pf. shares, 7 p.c. p.a.; B pref., 6 p.c., p.a., ord. and deb. stock Apl. 1' Felt and Textiles—int., ord., 5 p.c.; pref., 3 p.c. . . . . . • Ap!. 1 Howard Smith —qrly., pref., 1% p.c. Apl. 7 Woolworths (fiyd.)—final, 6 p.c. Apl. 15 Woolworths (W.A.) —final. 5 p.c. .. Apl. 15 Woolworths (N.Z.)—pref., 4V, p.c., less security tax . . .. Apl. 15 ■U.K. Manufacturers —6 p.c. .. Apl. 15 Nat. Mori. —final, 5 p.c. p.a. .. Apl. 22 Howard Smith—ord.. final. 2 p.c. Apl.. 28 N.Z. Drue —final, 4% p.c. . . . . April Electro Zinc—ord. and pref., halfyear. 4 p.c. .. May 21