COMMERCIAL

New Zealand Herald, Volume 82, Issue 25396, 28 December 1945, Page 7

COMMERCIAL

FAIiMING_ INCOME MEASURE OF PROSPERITY "If we don't get a 'move on' the fanning income, which i« ! now over £8«'3,000,000, may rapidly drop to the 1930-35 average of £43,000,000,"- said the chairman 6i directors, Mr J.. T. Martin, at the annual meeting of shareholders of Abraham and Williams, Ltd. "The value of our exports decides the measure of our prosperity. If we cannot widen our markets, we must reduce our production. "Wo can budget for an expenditure of £ 10,000,U00 for social security and family benefit*, a figure which exceeds our total prewar income taxation but toy no economic legerdemain, or any other fancirul manipulation of figures, can we plan to spend more than we earn and escape (ho consequences. When commitments are made beyond the economic capacity, national security is undermined and the 'hand-out* system degenerates into a distribution of poverty. "We can cut down the farmers' representation in Parliament, we can keep him working OO to 70 hours a week, wo can make him submit to every kind of industrial strike, but we cannot deny that wo aro absolutely dependent on him, that on his prosperity depends our financial stability, and that every pound sterling created overseas for our imports, and every payment made in reduction uf our overseas' debts, originates from bis efforts on tho farming lands of this Dominion. "The producer and consumer are interrelated, so let us never forget that Great Britain has always been and always will be our best customer. Let us continue to be hers, but do not force on a paternal, and possibly reluctant buyer, our increasing surpluses, and expect Great Britain, by absorbinn them, to establish for us credits in the United States uf America. Canada, Australia and the Last for payment of importations, which we ourselves should have balanced by exports from this Dominion."

THE FRENCH % FRANC EFFECTS OF DEVALUATION PARIS. Dec. 20 Official and financial circles in Paris see the devaluation of the franc as an essential triumph for the gold standard which Russia ami America have vigorously defended. It is asserted in Paris that Britain's 1 adherence to the Bretton Woods agreement has meant Britain will return to the gold sandard. The devaluation of the franc, says Reuler's correspondent, merely recognises officially what was already an established fact'. Official circles hope it will not be followed by further rises in internal prices, but this is essentially a question of general French economic recovery. An immediate advantage for France will be a profit for the Government on the revaluation of the irold stock held by the Bank of Prance. This will give the Treasury a nest-egg to cover expenditure for three months or more. The public debt also will he lightened. WOOL TRADE MAY BENEFIT SYDNEY. Dee. 27 Devaluation of the franc will have no immediate effect on Australia's trade with France and her colonies, but, if it helps toward French reconstruction, may ultimately benefit the wool trade. This was the opinion given by economists and bankers. The exchange rate with the Australian pound has now moved from 100 francs to 3SI francs. New Zealand exports to Franco until interrupted by the vvar were mainly wool, hides and skins. Trade with France was valued at well over £1,000,000 a year, of which considerably more than half constituted wool. Recently France made a substantial purchase of SO,OOO hales from accumulated wool stocks* held in New Zealand. This business was negotiated through the United Kingdom Government and it carried hopes of an early resumption of more normal trade relations with Europe. KAURI TIMBER YEAR MORE BUSINESSES BOUGHT The old-established sawmilling business of J. S. Lee and Sons (Tas.) Pty.. Ltd.', and the sawmilling and merchandising business of (ieorge Syme and Co., Ltd., in Hawera were purchased by the Kauri Timber Co., Ltd.. in the financial year ended August 31. Net profit of the parent company for the year was £38,5!)!), an increase of ,£5Bl. The usual dividend of 5 per cent absorbed £"17,500, leaving £ 1 ono to increase the carry-forward to £20,0!15 Results for three years are:— August 31 1 1)43 I<J44 1i)45 Brought in .. 10,030 10,080 10,508 Net profit .. 37,550 38,010 38,599

GIS.SSO .17, one 58.105 Div., 5 p.c. . . .'17,500 37,500 37,500 Carried forward X1!J,080 £10,596 £20,(195 The directors report that results have been materially affected by items of an abnormal character caused by war conditions and Government regulations. The compined profit of the company. and its subsidiaries was £50,573, against £53,489. Fixed assets in the consolidated balance-sheet stand at £'9lS,o!>7, against £7(50,920. Investments, at cost less amount written off, are £159.527, compared with £149,181. and current assets £871,578, against £780,575. The balance is reached at £2,030,50T, against £1,726,688. MOUNT MORGAN IMPROVEMENT Mt. Morgan, Ltd., earned a profit of £1163 for the four weeks ended December 16, following a loss of £\27B.'i for the previous period and a profit of £S2SS for the period ended October 21. Tonnage of ore treated in the latest period increased slightly to 40,100 tons. Average grade in gold was higher and that in copper was about the same.