COMMERCE AND FINANCE

Otago Daily Times, Issue 21669, 13 June 1932, Page 11

COMMERCE AND FINANCE

THE SHARE MARKET DUNEDIN STOCK EXCHANGE A sale of preferred Huddatt, Parkers va* reported on the Dunedin Stock Exchange on Saturday at 18s fid; further offers of Is less failing to attract a seller. Business was also reported in Daily Times •hareg at 40s, and, after the call* a sale of South British Insurances was reported at 50s 7R. Westport Coals continued on offer at 10s, a buyer coming into the market at 8s 3d. There was a buycf of Blackwater's at Bs, with a seller forward at 8s 9d, and contributing Alexanders were on offer at 20s |3d, with no buyer forward. . , ■ , Sales reported: Huddart, Parker ’(pref.), 18s sd; Otago Daily Times, 40b; South British Insurance (after call), 50s 7R. . , . The following are Saturday mornings buying and selling quotations, which are subject to the usual brokerage:— BANKING. Bank of Australasia —Buy £O, Bank of New Zealand —Sel 42s od. Commercial National Bank qf New Zealand —Sel 625. National'Baftk of Australasia—Sel £ll. Union Bank—Buy £6 15s. - INSURANCE. National Insurance Co. —Buy Us, sel 11s 4d. ■ „ ' „ New Zealand Insurance Co.—Buy 355. South British Insurance Co.—Buy 50s. Standard Insurance Co. —Buy 38s. SHIPPING. Huddart, Parker (pref.)—Buy 17s 9d. P, and 0. Deferred Stock —Buy 13s. U.S.S. Co. (pref.)—Buy 10s, sel 20s. COAL. Westport Coal Co. —Buy 8s 3d, sel 10s. LOAN AND AGENCY. National Mortgage—Sel 365. National Mortgage (“ B ” issue)— Buy 17s Cd, sel 225. „ , ‘ Perpetual Trustees —Sel 60s. Trustees Ex. and Agency—Sel 60s. Wright, Stephenson (ord.)— Buy 10s 6d. Wright, Stephenson (pref.)—Sel 14s 6a. MEAT PRESERVING. N.Z. Refrigerating (pd.)—Buy 11s 3d. N.Z. Refrigerating (cont.) —Buy 3g 10d, •el 4s 2d. t South Otagp Freezing—Buy 40s. MISCELLANEOUS. AustralianjjGlass-—Buy 34s 6d. British Tobacco-Buy 27s 9d. Crystal Ice Co.—Sel 245. D.I.C. (ord:) —Sel 12s 3d, Dominion Rubber—Buy 2s 3d. Milburn Liflie and Cement —Sel 24s 6d. M'Leod Bros.— Buy £22 ss. N.Z, Drug Co.— Buy 465. N.Z, Paper Mills (ord.)— Buy 18s 9d, •el 19s 3d. Woolworths (pref.)—Buy 22s 6d, GAS. Christchurch —Buy 25s 3d. BREWERIES. N.Z. Breweries, Ltd.—Buy 245, sel 24s 10d. N.Z. Breweries Debs. —Buy 20s. Dunedin Brewery—Buy 18s. Carlton Brewery—Buy 265. MINING.. Kawarau G. M. Co.—Buy 3d. Electrolytic Zinc (pref.)—Buy 18s 6d. Mount Lycll—Buy 16s 3d, sel 17s. Mahakipawa—Sel 5Jd. Kildare —Sel Is Bd. Okarito —Buy 9s 3d, sel 9s 6d. Paddy’s Point-r-Buy 4s. Golden Progress—Sel 2g 4d. King Solomon— Buy Is Id. Waitahu—Buy 9d dis. Blackwater —Buy Bs, sel 8g 9d. Alexander (cont.)—Sel 20s 3d. Gillespie’s—Buy par. sel id prem. OIL. Moturoa Oil. —Sel 4s 2d. GOVERNMENT LOANS. 4| per cent. Bonds, 1938 —Buy £92 SS. 41 per cent. Bonds, 1939 —Buy £92 5«. 41 per cent. Inscribed, 1938 —Sel £915s. 41 per cent; Inscribed, 1939—8uy £92 ss, 54 per cent. Soldiers’ Bonds, 1933—8uy 1100 2s 6d. ■ 51 per cent. Bonds, 1936 —Buy £99. 51 per cent. Inscribed, 1933—5 el £99 * B Simper cent. Bonds (February), 1937 Sel £IOO. „ 5§ per cent. Inscribed (February), 1937 1y £OQ , j 5J per cent. Bonds (September), 1937 —Buy £99, • 54 per cent. Inscribed (September), 1937 —Buy £99. ; , NORTHERN EXCHANGES / * .. . (Per United Press Association.) The following business was done on 'Changes on Saturday:— - Auckland. —Sales; Stock (1037) 5| per cent., £96 10a; City of Auckland (1957) 64 per cent., £95 10s; Auckland lire Board (1039), £IOO 10s (two sales); Commercial Bank. 13s 6d (two sales); Union Bank, £6 16s 6d (two sales); Bank of New South-Wales, £25 7s 6d; South British Insurance, 50g 7\d; Tooths Brewcries, 26s 6d; Farmers' Trading, 3s 4jd; Waihi Grand Junction, 2s Bd. Wellington.—Sales reported: New Zealand Government 54 per cent. Stock (1937), £O6 15s (late sale Friday); Bans cf New Zealand (cum div.), £2 2s 6d (late sale Friday), £2 2s 3d (two sales); Kawarau Gold, 4id (late sale Friday). Christchurch.—Sales: Commercial Bank of Australia. 13s 6d; Bank of New Zealand (cum div.), 42s 5d (three sales); Union Bank of Australia, £6 17s 5d (three sales) ; National Insurance, 11 la, Goldsbrough, Mort, 21s lOd; New Zealand .Guarantee Corp., 4s Id; Christchurch Gas, 25s 6d (three sales); New Zealand Breweries (cum div.), 24b 6d; Mahakipawa Goldfields, 4d; Okarito, 9s 4d. Sales reported: New Zealand Government 5i per cent. Inscribed (1934). £9B 2s 6d; British Tobacco, 28s 3d; 54 per cent. Inscribed (1933), £9B 10s; Bank of New Zealand, 42>i sd; New Zealand Refrigerating (10s paid), 4s; New Zealand Breweries, 24s fid. * FOREIGN EXCHANGES (British Official Wireless.) (United Press Association.i (By Electric Telegraph—Copyright.)

GEAR MEAT COMPANY At a meeting of directors of the Gear Meat Company- it was decided to pay an interim dividend of 6d per share on June 17 The dividend is at the same rate as that paid in June last year. The dividend for the year (to November 30, 1931). was 10 per cent., which was paid out or profits.'!; The interim dividend paid in June, 1930; was 3J per cent.

LOCAL and overseas markets.

SOUTHLAND MARKET REPORT (From Our Own CorkesronreNt.) INVERCARGILL, June 11. The stock market continues quiet for all classes and prices remain much the same as those recorded during the past few weeks. Fat cattle are still coming forward in fairly large numbers and values show very little difference from our last report. Fat sheep are also coming to hand freely, the market for freezing having eased, thus having the effect ofreducing prices in the yards. The store sheep market is very slack with small offerings both privately and at auction, and values have also eased during the past month. The store cattle market is very quiet and prices are the lowest experienced for many years. Fat Cattle.—Prime heavy bullocks, £7 to £8 7s 6d; medium-weight prime, £5 10s to £0 10s; prime heavy heifers, £4 10s to £5 10s; medium, £3 to £4; prime heavy cows, £4 to £5; medium. £2 10s to £3 10s; vealers, to 10s; runners, to £2. Fat Sheep.—Prime heavy wethers, 14a to 16s; prime medium-weight, 12s to 134; lighter, 10s to Us; prime heavy ewes. Os 6d to 10s 6d; medium, 7s 6d to 8s 6d; lighter, 4s 6d to 5s 6d; extra heavy lambs, to 20s; prime heavy, 15s to 16s) lighter, 12s 6d to 13s 6d. , Store Sheep,—Ewe lambs, 8s to 10s; wether lambs. 6s to 8s; poorer sorts, 36 to 4a 6d; two-tooth wethers, 7s to 9b; two-tooth ewes, 13s to 15s; six and eighttooth ewes, 8s to 9s; aged ewes, 3s to 4s 6d Store Cattle.—Three and four-year bullocks, £5 to £6; two and three-year, £3 10b to £4 10s; yearlings, £1 to £2. NATIONAL MORTGAGE DIVIDEND (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, June 10. The National Mortgage and Agency Company of New Zealand has declared an interim dividend of 5 per cent., tax ffee. ' P. AND O. SHARES (United Presa Association.) (By Electric Telegraph—Copyright.) LONDON, June 10. P. and 0., 12s, TALLOW MARKET (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, June 10. Tallow: Stocks, 2690 tons; imports, 1166 tons; deliveries, 796 tons. PRICE OF FINE GOLD (United Press Association.) (By Electric Telegraph—Copyright.) v LONDON, June 10. " Fine gold ia quoted at £5 12s 9d per ounce. CHICAGO WHEAT MARKET (United Press Association.) (By Electric Telegraph—Copyright) NEW YORK, June 10. Chicago wheat: July, 51 cents per bushel: September, 53J; December, 56g; New York, cash, 645. FRUIT MARKET (United • Presa Association.) (By Electric Telegraph—Copyright.) LONDON, June 10. The Port Napier’s New Zealand pears realised: Half cases, Winter Neffs, 7s and Ss. FROZEN MEAT MARKET (United Press Association.) (By Electric Telegraph—Copyright) LONDON, June 11. (Received June 12, at 5.5 p.m.) Frozen Meat. —New Zealand sheep: Canterbury and North Island selected crossbred wethers and maiden ewes, 481 b to 561 b, 34d. Australian sheep; First quality crossbreds and/or merino wethers, 401 b to 651 b, 2jd; second quality, 301 b to 551 b, 23d. Patagonian sheep: Wethers and/or maiden ewes, under 501 b, 34d. New Zealand Lambs.—Canterbury, 431 b to 501 b, 6£d; do other South Island brands, 361 b and under 6jd; do, 431 b to 501 b, 6jd; do, selected North Island brands, including 431 b to 501 b, 64d. Australian Lambs. —All States, third quality, 64d. Argentine Lambs. —First quality, 431 b to 501 b. s|d. Australian Frozen Beef. —Ox crops, under 1001 b, 3|d; over 1001 b, 3|d; ox hinds, under 160 lb, 4Jd; do, over 1601 b, 4fd. Argentine Chilled Beef. —Ox fores, 1601 b to 2201 b, 4|d; do, ox hinds, 1601 b to 2201 b. 64d. New Zealand Pigs.—First quality, 1111 b to 1201 b. 4gd. Australian Pigs.—First quality, 1111 b to 1201 b, 4id. Others are unchanged: LONDON MARKETS (United Press Association.) < (By Electric Telegraph—Copyright.) LONDON. June 11. (Received June 12, at 5.5 p.m.) Friday’s closing prices were as follow: Cotton: July, 3.81 d per lb. Rubber: Para, 3|d; plantation smoked, 1 1 M6d. Jute: June-July, £l4 7s 6d. Hemp: June-July, £ls 10s, Copra: June-July South Sea, £l2 10s; plantation Rabaul, £l2 12s 6d. Linseed oil. £l4. Turpentine, 595.

MERCHANDISE MARKET The Waipiata will discharge a cargo of sugar on Wednesday. The next sugar boat will be the Wairnarino, due on June 23. The Waikouaiti, from Sydney, lauded supplies of Australian-grown rice, ami transhipments of Sicily almonds and Ceylon tea.. Sicily almonds are showing merchants an increased cost to land, A further parcel of shelled walnuts arrived by the Waikouaiti. The Wainui, due on Tuesday from Wellington, will land a quantity of transhipments from London and Eastern vesThe stoned dates which have just come to hand are of excellent quality. Khadrawi and Siar dates are also on the market. , . Joy-weets, a line prepared by the Sanitarium Food Company (Christchurch), is now on the market. St. George meat pastes are now quoted at 4s 3d per dozen. Iritluded in the cargo to be landed from the Remuera wall be further supplies of stoned dates. Bon Ami, in blocks and powder, has been reduced in price. New season’s prices for dates are on a parity with those ruling at this time last year. . , , , . Owing to the keen demand from Australia for New Zealand-grown onions, the local market is Very firm. The current quotation is now about 18s per cwt, ex store. SYDNEY STOCK EXCHANGE (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY,' June 11. (Received June 12, at 5.5 p.m.) The morning sales on the Sydney Stock Exchange were as follow:—Bonds: Four per cents. —1938 £95 17s 6d, 1941 £92 17s 6d, 1949 £9l 17s 6d, 1947 £9l ss, 1959 £9l 7s 6d, 1953 £9l 15s, 1955 £92 ss, 1959 £9O 15s, 1961 £9l Is 3d; £lO Bonds, 4 per cent. (1944), £9 Is; Commercial Bank of Sydney, £l6 15s; Commercial Bank ot Australia, 15s IJd; Bank of New South Wales, £29 ss; Tooheys, 19s 7R; Tooths, 30s‘ Australian Glass. 40s Od; Colonial Sugar, £46 7s 6d; Goldsbrough, Morts., 24s 6d., THE EXCHANGE RATE POLICY OF THE COMMONWEALTH BANK. Since the Commonwealth Bank took control of external exchange operations questions have been raised trom time to time with the object of creating a body of opinion favourable to an lac , reaaa I . n the rate. The Commonwealth Bank Board (says a recent issue of the Melbourne Age) early laid down the P 1 ciple that it was not its duty to operate exchange in a manner favourable to any particular interest. On this point the chairman (Sir Robert Gibson) was specific. He said as long ago as December that the duty of the board was to manage the affairs of the bank as soundly as possible in the common interests, and that it included the very difficult task of managing the currency. He laid it down that it was no part of the board s duties to direct national policy, and u the currency were to be manipulated loi the purpose of giving advantage to sectional interests it was for Parliament to take the action. At a later stage, Sir Robert Gibson, in a letter to the Loan Council dealing with another aa P ec ’ ; the same subject, pointed out that the regulation of exchange in such a way as to raise the price level was not an obligation or function of the Commonwealth Bank. This policy has not been departed from, and the rate has been maintained for six months on a steady basis ot £l*,o 10s for telegraphic transfers on London, alterations only having been made in the terms for time drafts .in accordance with changes in the Bank of England rate. The policy of the Commonwealth Bankiis to regulate exchange according to the familiar law of supply and demand. ' Doubtless, if there were an extraordinary increase in exports, and Australian money accumulated in London beyond the requirements of national service and those of the ordinary import trade, the bank might consider the question of reducing the rate. Conversely, if exports fell away, and the demand for London money exceeded the supply, the bank board would consider the question of an increase in the rate. In the absence of either of these contingencies, it ’is reasonable to assume that the rate will remain unaltered. Due weight does not appear to have been given to these fundamental facts by merchants and others interested in the exchange position. They have allowed theiDselves to be influenced by propaganda in favour of alterations to suit particular sections of the community and by theoretical discussions of broader issues. A certain amount ot uncertainty has thus been created which the circumstances do not justify. That this can have a very serious effect on the London exchange position is shown by recent events. Some weeks ago unfounded rumours were in circulation regarding the probability of an increase in the exchange rate. Several business undertakings with head offices in London and elsewhere had allowed portion of their funds to accumulate in Australia in the hope that the rate would eventually fall, and that they would thus be able to transfer their money to headquarters at a rate less than £125 10s per cent. These rumours, which arose largely as the result of propaganda, so alarmed them, however, that they made immediate .arrangements to accept the known loss of £25 10s per cent, rather than face an increase of possibly £lO to £ls per cent. In tins way the Australian exchange pool in London controlled by the Commonwealth Bank and contributed to by the trading banks was unnecessarily drained to the extent of no less a sum than £7,000,000 at a time when an accumulation of Australian money in London was pyticularly needed for national purposes.

FRUIT AND PRODUCE WORLD

Reilly’s Report.—Selling: Sol de Or, 6s to Bs. Violets, 2s to 3s. Paper whites, Is to 2s. Pearls, 4s. Chrysanthemums, 2d, 4d. Beetroot, Is. Cabbage, 2a 6d. Eggs: Local poultry keepers, 2s; pullets, Is 9d, preserved, Is 6d. Honey. Half lb pats, 4s 3d; 11b pottles, 7s; 21b, 13s; sections, 6s, 9s; 51b, 2s 9d, 3s 3d; 101 b, 5s 6d, 6s. Apples: Jonathans, 4s, 5s 6d; Delicious, ss, 7s 6d; Alfristons, Lord Wolseley choice large cookers, 3s 6d, ss. Pears: Winter Coles, ss, 7s; Winter Nelis, 6s, 7s. Persimmons, 5s to 6s. Pines, 22a 6d. Island oranges, 13s, 14s. Californian oranges. 42s 6d. Sunbeam navels, 11s to 14s. New Zealand passions, 12s, 15s. Australian grapefruit, 15s. Californian lemons, 50s; New Zealand, 13s, 15s; Australian, 16s. Bananas: Choice ripe Niues, 17s; green, 14s. Brussel sprouts, 2d. Bulk honey: Choice, 54d; discoloured, 3d. Grapes: Gros Colmars, 2s 10d, 3s 6d. Tomatoes; Locals, lOAd; Christchurch hothouse, 4d, Bd. Walnuts, sd. Porker and bacon pigs, 3jrd 5Jd. Cheese; Medium, sd; loaf, 7d. Tea: Orange Pekoe, 2s 3d. Beeswax, Is 3d per lb. Mutton birds; Salted, Od; smoked, 6Jd each. Pieraelons: Australian, 12s; New Zealand, 9s. Marrows. Bs, 9s 6d. Pumpkins, 6s, Bs. Potatoes, 5s 6d, 6s 6d. Onions: Canterbury, 14s; Central Otago, 18s Swedes, 3s. Carrots, 6s. Parsnips, 7s. Woodwool, 28s. Oyster grit. 8s cwt. CM.W. Knapsack Sprayer, £5; bucket pumps, 22<i 6d. Bluestone: Maccleslield, 42s 6d cwt. Olive oil, 10s 6d gallon. Semesan and Granosun: 51b, 555; 2oz, 2s 3d. Strawberry plants: Captain Cooks, Helenslea Surprise, Ettorsburgs, from 5s to 10s 100, 25s to 60s 1000. Fruit wraps, 3a ream. Champion egg crates, 15s 6d. Vallo giraffe lime sulphur: Cases, 2 gallons, 2s 3d; barrels, Is 9d. Blackleaf “40”: 101 b, 525; 51b, 30s; lib, 8e 0d; 41b, 5s 6d. Wheat, ss. 5s 6d; shrivelled, 4s. Ricemeal: For poultry, pigs, and cattle, 7s 6d. Oats: A Gartons, 3s 3d; “ B,” 2s 9d. Cross Key s meatmeal, 16s 6d 1001 b bag; national meatmeal, 15s cwt. Firewood blocks: Manuka, 2s 6d; cedar, 2e 3d. Crushed oats, 12s 6d. Bran, £5. Pollard, £7. Straw: Whcaten, £3; oaten, £3 10s. Chaff, £5. Poultry: 162 hens at 2s 6d to 9s. 126 cockerels at 2s 6d to 10s, 64 pullets at 6s 6d to 14s, 26 ducks at 3s 6d to 6s. All at per pair; 48 gobblers at 7d to 7*d, 17 turkey hens at 6Jd to 7d; all at per lb. Jersey Bennes seed procured last year by Redcafitle College, Oamaru, produced 30 tons to the acre. This season we are offering this line at 18s per cwt. Canary Island seed at 6d per lb, Epicure 14s cwt. Potatoes: King Edward, £6 10a to £8 per ton; Atran Chief, £5 10s; and other varieties at particularly low prices. REILLY’S CENTRAL PRODUCE MART, LTD., Moray place, Dunedin.

COMPANY BALANCE SHEET BANK OF NEW ZEALAND,

Whether the turnover of the past year hag fallen to the extent shown by the gross' profit when compared with that of 1930-31, or Whether an increase has been made in the customary provisions, does not appear. Possibly both causes have contributed, although the absence of the usual clause “ and other contingencies' among the Specified provisions would seem to indicate that the individual items are reduced in number. The difference in the gross profit is £238,720, which is in* creased to £258,791 in the net profit. The controlled expenditure has been reduced under each heading, the general expenses group showing a decrease.of no less than £32,432. The successful efforts to curtail charges are, however, more than nullified by the increased rates and taxes. These have reached the enormous sum of £502,835, or equivalent to 85.66 per cent, of the net profit. While the mind may fail to conjure up the extent to which such a burden must press upon any undertaking, the benefit to the State from the bank’s activities is apparent. On this occasion there is not only no transfer to reserve fund in the proposed allocation, but the total dividends exceed the net surplus’ for the year by £230,945. When the claims of the preference and long-term mortgage shares have been met a balance of £306,555 remains. No reduction, however, is proposed in the ordinary shares distribution, the maintenance of which, at 14 1-3 per cent., will entail recourse to reserves for £230,945. When the rate is maintained on a profit shrunk by approximately one-tkird from that of the preceding year, which in turn had fallen by some £IOO,OOO, great confidence must be placed in reserves. At this time, it may be noted, the term “bonus” is omitted, and all the distribution is now nominally—what it was actually—dividend. • The growth of reserve fund, which was restricted 12 months ago, has meanwhile ceased. At its earlier rate of progression it bade fair to draw level with the ordinary share capital in a year or two. The undivided surplus brought forward from previous years, amounting to £626,002, will be reduced to £395,056 when the proposed allocation is confirmed, so that the general reserve for the first time will since 1921 show a decrease. In consequence their relation to the paid-up capital is also down. The respective positions have been as follows:

Although the ratio is now the lowest since the most recent issue of capital, it compares favourably with some preceding years. In spite of increasing demands by the tax gatherer, the reserve earmarked for taxes is intact at £426,000. It may come as a surprise to find that notes in circulation have increased to £4,062,763, as the general tendency with the reduced circulation of money would be for the total to fall. Possibly at the date of closing the books the statutory reductions had not had time to take effect, but an increase of nearly £400,000 in the note circulation ig unexpected. In relation to the coin group, the position of the notes has as under:— Coin, Cash Balances, Deposits

The group of miscellaneous liabilities has made a further drop, which brings it to £3,642,948. How far bills payable may be responsible for the fall does not appear, but, as the contingencies provision is not mentioned as a partaker in the yearfs surplus, it may be assumed that there has been little demand upon provision for contingencies, and that it is in the liabilities portion that the decrease has taken place. A smaller liability is the balance of £124,362 from the longterm mortgage department; representing the difference between the total funds concerned ‘and the amount outstanding on loans. The funds concerned are the same as at March, 1931, but some £BO,OOO less is out on loan. Balances. due to other banks add £77,243 to the indebtedness. The chief liability—deposits—is less by some £750,000. This movement is contrary to the general trend at the present time, when the tendency is for bank deposits to accumulate, and will act as a part set-off to the reduced revenue, owing to the smaller total advanced. As regards rates of interest, there are reductions on «both sides. Advances, on the other hand, have followed the general rule, and are less by over £2,400,000 The net result is that the bank received approximately £1,650,000 into its hands during the year. The relations between the two main groups have been as follow:

Although the margin between the two has increased, there is nothing abnormal about the position of either group. In recent years, the deposits have remained remarkably constant while the greater fluctuation shown by the advances has left them rather over the average of the past seven years in spite of their pronounced reduction during 1931-32. The second asset in point of magnitude is the coin group (£7,697,240). An increase of nearly £600,000 is recorded here in spite of the assets total being reduced. This is not the first occasion on which the coin group has moved in opposition to the general body. The securities held in London, inclusive of bills receivable there and those in transit, aggregate £5,829,034. as against £5,920,138 at March, 1931, the drop in bills receivable being mostly made up by the increase in London securities. It is into New Zealand Government securities that the bulk of the released funds appear to have been turned. Notwithstanding a depressed market the New Zealand Government investments appear at £4.682,686. The depletion that took place during 1930-31 in that group has been more than made good, but their rise of over £1,200,000 has been partly gained apparently by realisation in local bodies’ securities, which are down to £682,379. Australian Government securities, at £3.647,732. are steadily growing, and with remittances in transit of nearly £1,500,000 and sundry small items bring the liquid assets up to £24,199,750, or equivalent to 61.50 per cent, of the liabilities to the public. The fixed assets continue to move upwards steadily. Although standing at £622,825, their influence over the whole may be estimated when it is considered that they represent approximately oneeightieth of the total assets. Nevertheless, there is room for n substantial inner reserve in the group. Like other forms of property, land and ' buildings are affected by the general slump, and while possibly the margin between their realisable value and their book value is not_ so great as it has been, there must be sufficient to add materially to the strength of reserves.

The size of the figures, as laid out in the balance sheet, is imposing, and their appearance is more impressive when the comparatively limited and sparsely populated area in which the hank chiefly functions is considered. ft was two years ago that, from the chairman’s remarks at the annual meeting, it was learnt that the institution had reached such proportions that the task of finding employment

for its enlarging resources within the country of its domicile was becoming increasingly difficult, or briefly, that New Zealand was overbanked. How much more complicated must the task be now when the general contraction of business has cut down the values within the Domion and the volume of trade to and from it upon which its existence depends? The effect- of the diminished trade is shown in the reduced profit for the past year, which, if the distribution to shareholders had- been kept within its limits, would have meant a dividend of 8 per cent, for the ordinary section. Strong although reserves may be, they cannot be expected to furnish indefinitely the funds requisite to maintain the rate at its former high level. The Bank of New Zealand probably stands alone among banks in the unique position of not having announced any cut in its dividend rate in respect to the past year, and while the result of its action should prove beneficial to the community generally, it is only a matter of common prudence to be prepared for a time when force of circumstances may weigh 100 heavily to permit of the position being maintained. MINING MATAKITAKI DREDGING COMPANY. PURCHASE OF PLANT. The Matakitaki Gold Dredging Company, which has its claim at Murchison, has recently completed the purchase of a dredge, and work will be put in hand immediately to have it transferred from Pullar, in the Waikaka Valley, where it has been worked for many years by Messrs M'George Bros., to the company’s claim. It is anticipated by Mr R. O. Speed, who will be in charge of the transportation work and will assume the position of dredgemaster when onerations are commenced at the claim, that the dismantling and shifting of the dredge will occupy about two months, and it is hoped that a shorter period will suffice for putting it in Working order at Murchison. It is proposed to make fairly extensive alterations to the dredge, which will be equipped with stronger pontoons, new cast-steel buckets and an elevator and stacker. The dredge, which is driven by a steam plant, will also be provided with a stronger power factor of the same type as that now being used. The Matakitaki Company’s claim, which is on the Matakitaki River, sometimes called the Golden River, at Murchison, is in shingle country. There is a heavy gravel wash about 22ft deep, which is claimed to make an attractive dredging proposition. As the plant is designed to work at a maximum depth of from 28ft to 30ft, it is not anticipated that any difficulty will be experienced in securing' the maximum returns. DAIRY PRODUCE Messrs H. L. Tapley and Co., Ltd., have received the following cabled market report from London: —Butter, 95s to 96s per cwt; market quiet; cheese, 54s to 55s per cwt; market dull. The South Island Dairy Association, Ltd., has received the following market report from the New Zealand Produce Association, Ltd., London: — Butter.—The market is dull. .Quotations are: 94s to 965; Danish, 98s to 100 s. Cheese.—The market is quiet. Quotations are: White and coloured, 545. AUSTRALIAN SEED New regulations governing the importation into New Zealand of agricultural seed grown in Australia are published in the current issue of the Gazette, replacing the regulations made in May, 1927. Agricultural seed is defined as including grass seed, clover, lucerne, millet seed, and the seed of any root, pulse, or ether forage crops. „ Subject to the provisions of the regulations, seed grown in Australia elsewhere than in Queensland or a certain prohibited area of New South Wales may be imported into New Zealand. Seed grown in New South Wales, elsewhere than in the prohibited area, may bo imported provided that before shipment it has been subjected to fumigation for not less than 24 hours, and that it is subjected to fumigation again on arrival. Other stipulations must be complied with, notably the signing of a declaration stating the origin of the seed. PRODUCTION OF HEMP BONUS GOES BEGGING. The Government’s bonus of £IO.OOO for a commercially practicable method or process of effecting major improvements in the preparation “and manufacture of New Zealand hemp is unlikely to be awarded in view of the fact that no process giving promise of being accepted has been submitted. , Entries were originally to have been submitted to the Government not later than November 30 of last year, but the closing date was postponed for six months. In spite of this, it is stated that it has Jieen impossible to find a process that complies with the specifications laid down when the bonus was offered in February, 1930, It was stipulated in the conditions that the machine or process in regard to which the whole or any part of the bonus was to be paid, should be recommended by a committee set up by the Government. The £IO,OOO was to have been paid wholly or in part for a commercially practicable process of extracting and dressing the fibre of New Zealand hemp (phormium tenax), whether by machinery or otherwise. There was to be obtainable a greatly improved quality of fibre, marketable at a higher price, a considerably greater quantity of strong white fibre per ton of green leaf, or a substantial reduction in the cost of producing the fibre. Various other conditions were attached to the award of the bonus, but it is stated that the condition concerning the extraction of fibre from not less than 500 tons of green leaf under test requirements has not been fulfilled to the satisfaction of the Government. YIELD FROM DAIRYING INCREASE IN PRODUCTION. The production of butter-fat in the Dominion has been well maintained, and the grading figures for the first 10 months of the current dairying season compare more than favourably with those for recent years. Stocks held in the various grading ports at May 31 were 14,265 tons of butter and 12,160 tons of cheese, as compared with 13,944 tons of butter and 10,877 tons of cheese on the corresponding day last year. Figures prepared by the dairy division of the Department of Agriculture show that the salted butter graded for May. 1932. was 4843 tons, and the unsalted 30 tons, a total of 4873 tons, compared with 4144 tons of salted and 20 tons of nnsalted, a total of 4224 tons, for May, 1931. This represents an increase of 15.36 per cent. For the 10 months ended May. 1932, the respective quantities were 96,899 tons and 4189 tons, a total of 101,088 tons, compared with 90,890 tons and 3590 tons, a total of 94.480 tons, for the corresponding period of the preceding season. This is an increase of 0.98 per cent. The cheese graded for May, .1932, comprised 3366 tons of white and 1893 tons of coloured, a total of 5259 tons, compared with 2556 tons of white and 1606 tons of coloured, a total of 4162 tons, for May. 1931, an increase of 26.36 per cent. The quantities for the 10 months ended May. 1932, were 56,000 tons of white and 29.221 tons of coloured, a total of 85.227 tons, compared with 58,041 tons white and 28,585 tons coloured, a total of 87,526 tons, for the corresponding period of the preceding season. This is a decrease of 2.63 per cent. Converting these figures into butter-fat equivalent, there is an increase of 4.645 per cent, in butter-fat production for the 10 months ns compared with the corresponding period of 1930-31 season.

RUGBY. June 10. Par. June 9. June K. Paris. ft to £1 .. • • 124.21 93V4 93% Brusieli, belgai to £1 •• 35 20.35 20.35 Oslo, 'to to £1 .. •• 18.150 20,10 20 1-16 Stockholm, to to £1 .. 18.150 19 17-32 19.52 Coptnbaten. kr to ft •• 18.150 18.30 18.30 Berlin. marks to £1 .. 24.43 15.47Vi 15.47Vi Montreal. dol to £1 .. 4,80 23 4.2# 4.25V* New Tort dol to £1 .. 4.88 23 3.67 Vi 3.07 % Yokohama. pence to yea 34.58 20% 20% Hongkong. pence to dol 25.15 15% 15% Bombay, ranee to rupee 18 17 15-16 17 Vi Batarla. florins to £1 .. 12.107 9.18 Milan, lire to £1 .. .. 92.45 71% 71% Amsterdam, guilder to £1 12.107 9,07 Vi 9.07 Prague, to to £1 .. •• 24.02 124 123% Genera, to to £X •• •• 25,22 Vi 18,80 18.80 ■Vienna.' schillings to f I 24.25V* 30Vi 30Vi Helsingfors, marks to £1 193.334 215 215 ■ Madrid, pesetas to £1 .. 25.55 Vi 44 9-16 44 9-10 Athens, drachma to £1 2S.22Vi 570 670 Lisbon, escudos to £1 .. 6.50% 110 110 Bucharest, lei to £1 .. 837 015 617V4 Bio de Janeiro, pence to bUlrelt 18 £ £ Buenos Aire*, pence to 47. S2 — — Shanghai, pence to tael 23% 20 Vi Monterldco. pence to peso 51 30 30 Warsaw, ilotrs to £1 .. ' 43.38 32.75

liar. 31. Gross "Net I’ref. Ord. Profit. Profit. A. B. — £ f. H.6. li.ii. p.c. 1018 .. , 1,100.411 336,006 10 15 15 1020 .. , 1,376,838 410,015 10 15 15 1022 .. 1,809,255 032.042 10 10 13 1-3 1024 .. 1,709.288 735,831 10 10 13 1-1 1926 1,888,309 912.160 10 11.8 13 1-3 1027 .. 1,830,881 847.071 10 13.2 14 1-8 1028 .. 1,816,800 841.878 10 13.2 14 1-3 1029 .. 1,916,600 012,054 10 13.2 14 1-3 1030 .. 2,013,520 048.534 10 13.2 14 1-3 1031 .. 2.000.412 845,814 10 13.2 14 1-3 1032 .. 1,770.080 587,023 10 13.2 14 1*3 • After deducting interest on 4 per cent Kiinranteed stock at

Mar. SI. General Reserves. Paid-up Capital. Rates. 1318 .. 2,315.702 £ 2.279,988 P.C. 102.88 1320 .. 2.010,520 2.027,411 100.72 1322 .. 2.105,818 3,901.088 53.92 1921 .. 2.831,514 5,029.988 50.29 1920 .. 3.300.378 0,751,988 55.08 1327 .. 3.009,050 0,529,180 55.28 1328 .. 3.732,525 0.771,198 55.12 1329 .. 1,012.531 0,858,111 58.95 1020 .. 4,173.157 6,858,114 60.85 7331 4.201,002 0.858,111 01.20 1932 .. 3.970.050 o.sbs.iu 57.89

Mar. 31. Notes. with Bankers Hallo. £ £ I'.C. 1918 .. 3.312,905 5,500,385 00,23 1020 .. 5,705.337 8,371,535 08.87 1022 .. 4,294,230 7,427,410 57.82 1924 .. 4.072.101 7,190.347 50.59 1020 .. 4,444,392 7.291,795 00.95 1027 .. 3,705.593 7,532,199 49.09 1028 .. 3,707.080 7,527.420 50.44 1929 .. 4,290.79.) 7,142.140 00.08 1930 .. 3,754.048 0,763,602 53.52 1931 3,070.957 7.100.498 51J8 1932 .. 4,002.702 7,097,210 52.78

Mar. 31. •Advances, etc. Deposits. Hallo. £ £ n.c. 1518 .. 10,408,493 , 30,437,930 54.10 1520 .. 17,929,015 37,061,010 47.61 1522 .. 23.312,130 28,070.003* 81.20 1924 .. 18.787.101 30.501.719 61.59 1525 .. 20.994,011 31.121.28S 67.40 1527 .. 22,402.952 29,004.024 75.72 1928 .. 21.453.505 30,339,033 70.71 1929 .. 21,505,380 33.039.051 03.30 1530 .. 27,415.039 33,897.005 80.88 1931 .. 1932 .. 27.287,253 24.860,537 32.324,085 31,51)5.843 84.42 78.70 • After deducting provision for bad and doubtful debts.