COMMERCE AND FINANCE

Otago Daily Times, Issue 22068, 26 September 1933, Page 4

COMMERCE AND FINANCE

DUNEDIN STOCK EXCHANGE Dominion Day was observed as a holiday by the Dunedin Stock Exchange yesterday, and no call-overs were conducted. AUSTRALIAN STOCK EXCHANGES (United Press Association.) (By Bleclrio Telegraph—Copyright.) SYDNEY, September 25. (Received Sept. 25, at 10 p.m.) On the Stock Exchange, although there was no very pronounced change in prices the market remained exceedingly active. Here and there there was a slackness due to profit-taking. Gilt-edgeds were rather overshadowed, but all the bond issues retained their strength, and there was an excellent inquiry.for tin shares and better class trading concerns and banks, which were firmer., • , '. , T Following are the sales:—Bank of .New South Wales. £33 17s 6d; Commercia Bank of Sydney, £lB 15s; Commercial Bank of Australia. 17» 3d; KB. and A. Banki. £6 2s 6d; Union Bank £lO 17s 6d; National Bank (£5 paid), £6 17b M, Queensland National Bank, f 5 13s, Colonial Sugar, £59 1U «;• Australian Provincial Assurance, 12s 6d; Australian General Inlurance, lis sd: Howard Smith. 12e 6d; Berlei, 27s 6d; British Tobacco, 375; Dunlop Perdriau, 19s 6d (pref., 33s 6d); Goldsbrough, Mort, 1,9 s 10|d; Anthony Hordern, lis 5d (pref., 20s); Automatic Totalisators, 16s 6id; David Jones. 33g 6d; Newcastle Gas C, 12„ Id: Standard Cement, 16s 6d; Australian Iron and Steel. 17s 4£d; Electrolytic Zinc, 25s 9d, Nestles (pref.),. 33s 9d; Henry Jones,, 38s 4jd; Morris Hedstrom, 20s; Wilcox Mofflin, 9 8 3d; Winchcombe Carson, Hume Pipe, 10s 6d; Gibson and Howes, 245; Wunderlich, 225; Broken Hill Proprietary, 40s; South Broken Hill, 695; South Broken Hill (New Zealand delivery), 695; Kuala Kampar, 9s; Mount Morgan, 50s; Bulolo Gold, 96s 6d. MELBOURNE, September 25. Commercial Bank of Australia, 17s 4d; Goldsbrough, Mort 30s; Dunlop£»*£«. 19s sd; Mount Lyell, 23s 6d; North Broken Hill, 90s. THE PRICE OF BUTTER (Per United Press Association.) WELLINGTON, September 25. The wholesale price of butter in Wellington was advanced Id to-day. the retail price for standard brands is now Is 2d per lb. EXCHANGE INDEMNITY PROSPECT FOR CENTRAL BANK. LONDON VIEW OF POSITION. When the New Zealand accounts for the first quarter of the present financial year were issued last month, with an accompanying memorandum by the Minister of Finance, the High Commissioner issued a brief statement in London giving the salient features of the accounts and the Minister's statement. Commenting on what was revealed concerning exchange transactions and the Governments liability in connection with them, the Daily Telegraph of August 15 said in its financial section:—"lt is unlikely that the disparity between the demand for sterling and its supply will remain as marked as it was in the first quarter, for that is the big exporting season. It is not improbable that in the next few months demand and 1 supply will approximately balance; even so, well-informed Observers estimate that for the whole year there may well be a final sterling surplus, after deducting both the Government debt service and the amount which can be sold to municipalities, etc., of something approaching £5,000,000. This the Government will have to finance by an increase in its floating debt. So long as it can arrange the finance—and that largely depends on the 1 capacity*'of the banks to absorb Treasury bills—it can be taken for granted that there will be no question of a reduction in the discount on the exchange, for the Government is morally pledged to assist the farmers. "Meanwhile, the fact that the exchange must ultimately return to an economic level implies that the Government will incur, a considerable loss- on its surplus holdings unless, as the official statement. suggests might be done, the sterling is finally transferred to the .Reserve Bank shortly expected to be formed. In that event, the bank itself would start with an overvalued .exchange • reserve—a most undesirable beginning." .AUSTRALIAN INDUSTRIES •CAPITAL FROM ABROAD.There is little doubt (says, the Sydney Morning Herald) that money is coining to Australia from abroad for investment. The' funds of the Commonwealth Bank in London are higher on the year, leaving out of reckoning of money in .London on account of the issue department, representing in large part the proceeds of the gold reserve exported, bice the close of the statistical year (June 60) there has been a small export balance, but it has not been nearly sufficient to pay the public commitments overseas. Imports are bringing money here for investment of two classeß. One is merely temporary, short-term money. .It is being left here because temporary investments here can earn a higher rate than the London shprt-term. rate, which is 12s bd per cent. Perhaps, too, a hope for a desire of a fall in the exchange rate helps to keep it here. Other cases are those of money coming here for long-term investment. The holders evidently consider that Australia offers a promising field for this purpose.

LOCAL AND OVERSEAS MARKETS.

MINING GOLDEN SANDS RETURN. The Golden Sands dredge master reports a return of 430 z lldwt for 3B shifts. OKARITO RETURN. The return from the Okarito dredge for the week ended September 23, amounted to 40oz 13dwt. The working time was 111 hours. WAIKAIA GOLDFIELDS. During last week a visit was paid to the Waikaia district by Messrs E. ■ O. Nee 9 an d G. E. D. Seale, of Diraedin, for the purpose of acquiring on behalt of a Dunedin syndicate mining areas in the neighbourhood of the King Solomon Deep Lead. , !.•_«.:„ Mr Seale, who was for some time.in charge of the Government Kyestone boring plant, was also the original owner of the King Solomon mine, and he conducted boring operations there on behalf of the Government. At that time he expressed considerable confidence m the area, a confidence which has been borne out by the returns obtained from the mine. AUSTRALIAN PRICE OF GOLD. The price fixed by the Commonwealth Bank for gold, including j ewellery .lodged at the Alelbourne Mine for the week ended September 15, was at the rate of approximately £7 7s Id per standard ounce (22 carats), equal to a P r ™i o 88.88 per cent. Payment is made ac cording to the assay value of the gold. The p"ce is Is Id higher ori the, week The price per ounce fine i 9 £8 Os ea, a rise of Is 3d on the week. . The Commonwealth Bank's price for sovereigns at head office, Sydney, is 375. , BRIAN BORU DREDGE. (Per United Press Association.) GREYMOUTH. September 25. The Brian Boru dredge return is 58oz lOdwt for 95 hours' working. FOREIGN EXCHANGES (British. Official Wireless.) (United Press Association.) (By Electric Telegraph—Copyright.)

WILSONS PORTLAND CEMENT DISTRIBUTION OF CAPITAL. (Special to Daily Times.) AUCKLAND, September 25. One of the most important distributions of •'capital by a .New Zealand company will be carried out next month, when Wilson's (New Zealand) Portland Cement, Ltd., Auckland, will return to shareholders 10s on every £1 share held. The capital of the company, £600,000 in fully paid £1 shares, will be reduced to £300,000 in shares of 10s. Although the difference amounts to £300.000, the actual distribution will be £306,000 in New Zealand Government Instribed Stock or cash, as value for £lO2 is being given for every £IOO of capital returned. The sanction of the Supreme Court having been obtained, the company's next step will be the preparation of a list of shareholders, and for this purpose the register of members will be closed from October 2 to October 7. From the last-named date the old share certificates will be received, at the company's office. The company expects to send the transfers of inscribed stock to shareholders, together with any cash balances, about the middle of October Amounts under £5 and fractions of £5 will be paid in cash.

Scott Bros., produce merchants and commission agents, agents for the Dunedin Egg Suppliers' Association, report: —Eggs: At market rates. Butter: Dairy pats, 9d to 9£d per lb. Honey: Bulk, 3|d to 4d per lb; 101 b tins, 3s 9d to 4s; 51b tins. 2a 9d each. Poultry: Hens, Is 6dto Is 9d each; young roosters, 2s to 3s each; ducks, 2 6 to 2s 6d; geese, 3s to 4s 6d each; turkeys—hens 8d per lb, gobblers 9d per lb. Pigs: Prime baconers, 3|d to 4d per lb; porkers, 4d to 4Jd per lb. Potatoes, £3 to f 3 5s per ton, ex truck. Chaff: Prime oaten sheaf, £4 to £4 5s per ton, bags extra, ex store. Table' carrots, 4s 6d per cwt. Parsnips, 5s per-cwt. Canterbury onions: Brown Spanish, £lO to £l2. Partridge peas, 5s per bushel, sacks extra. Whole maize, 5s 3d per bushel, sacks extra.- Whole fowl wheat, 3s 9d to 4s, sacks extra. Clover and ryegrass hay, £4 10s, ex store. Lucerne hay., £5 10s to £6 per ton, ex store. Oats: Gartons, 2s per bushel, sacks extra, ex store. Pressed wheaten straw, £3 ss; oaten, £3 10s, ex store. Farrofood, £6, ex store. Victory feeding meal, 9s per cwt. Palmers chick food: 1001 b, 15s; 501 b, 8e Gd; 251 b, ss, ex store. Ground barley, 8s per 1501 b, ex store. "Acorn" buttermilk powder, 2i<l per lb. September 25, 1933.

COMPANY BALANCE SHEETS THE CANTERBURY FARMERS' COOPERATIVE ASSOCIATION, LTD.

The published accounts for the past year show that, while the turnover is increasing, the provision considered necessary to meet bad and doubtful debts outweighs anv benefit derived from the larger revenue. The profit and loss account balance for the third consecutive season appears on the debit side, and, although there is the satisfaction of knowing that the annual deficiency is gradually being reduced —on this occasion by more than one-half—the effect is to add £15,443 to the ■ total debit which increased to £116,378 is brought to the current seaIt is gratifying to find that in spite of adverse conditions, the revenue has risen from £72,358 to £88,368. Concurrently a reduction has been made in expenditure which, at £103,811, is equivalent to 117.48 per cent., as against 146.70 per, cent, for 1931-32. While the nature of the expenditure is fully detailed, the figures are grouped so that the amount ot bad and doubtful debts provision does not appear. The respective group total is £40,122. of which depreciation accounts for £4764, leaving £35,358 to cover the other charges. On the basi 3 of the previous year's proportions, it would seem that the provision for bad and doubtful debts has been reduced. The salaries croup, at £44,736, shows a slight decrease, which is partly offset by the increase m the taxes group to £7951. At £11,002 the interest, exchange, and rent group has risen by nearly £4OOO, the result doubtless of the higher exchange rates and of the relative provision considered prudent. Among the fixed assets, no alteration has taken place during the year in either freehold or leasehold property. ine former appears at £144,769 on which the depreciation allowance is £2Oll,- or .approximately H per cent., and the latter at £8661, the relative al owance being £lB2. or over 2 per cent. The book values of the two properties are thus down to £142,758 and £8479 respectively. Some capital expenditure is recorded by the rise in the chattels group winch, after a wastage provision of nearly 7 per cent., stands at £35,762. The fixed assets total of £187,000 again shows a reduction, owing to the depreciation allowance of winch, however, a sum of approximately £l4 remains to be accounted for out of the £4764 mentioned in the report. The largest liquid asset—£l9l,3so-has fallen, the result, to some extent, perhaps, of the bad and doubtful debts provision which may also apply to the Dues on open accounts" item of £54,726. Con jointly, these two assets are down by over £20.000, notwithstanding the larger turnover. From this it may be .inferred that either the money is coming in better than formerly, or that there has been a small alteration in the constitution of the accounts and. that the bad and doubtful debts provision is the chief agency at work to cause the change Goods on hand continue to diminish but not to the same extent as before. At £109,91;! the difference may be due to a more conservative valuation without reduction of quantities. The varied nature of the stock must introduce several coinplications, especially at the present time with high exchange rates ruling. In relation to the gross profit on merchandise and produce*(£ 7s,ls6) they stand roughly at the proportion of three to two. There are certain investments which continue to be entered at £5918-presurnably cost price—but their nature is undefined. A comparatively marked reduction is seen in the insurance premiums paid in aavance (£979), but that result may be due to the accident of dates, and not to any reduction in insurance risks. The small sum of £2OB. representing bills receivable, shows an increase. 15nWllfv Debentures remain the chief liability at their former total of £246,318. At a tost of 5 per cent., they approach the Paid-up capital closely in amount. U might havi been expected that recent legislation would act in favour of reducng the cost, but the accrued interest at July, 1933, was £3498. or more than £2OO higher than at July. 1932 Another interest-incurring item is the bank overdraft which at £114.875, is the next largest liability. The lower interest rates on overdrafts should make a pronounced deference here. Current accounts, at £16.741. are virtually unchanged, but sundry cretlitorVare reduced to £14,434. The chief liabilities have stood at recent balancing dates as follows: — • 1930. 1031. 1032. "33.

During the past year, the reduction is practically confined to the bank overdraft, and has been effected concurrently with a decrease in sundry creditors, but the indebtedness, to London Office at £l! 785 has almost doubled. The reason of this may be found in the higner exCb |ome Satisfaction may be found from the knowledge that the total mdebtedneL has been reduced, vrhfleibiß gathered that tbe loss may be attributed to pi ovisions made in connection with actior.* of previous years. If this is -o ft world -seem desirable .that instead o( crippli'.fi the present activities by losses in thf. past, which may continue ro oe. felt for some time, some step should be taken whereby, released of tjiese incumbrances, the association would be free to continue ite career.

SYDNEY WOOL SALES (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, September 25. (Received Sept. 25, at 11.15 p.m.) At the wool sales 12,773 bales were offered and 11,331 were sold, while 309 were disposed of privately. Prices were 5 per eent. below the closing rates of last week. All descriptions of burry and faulty wools were irregular. Greasy merino made 22|d for five bales from Moree. The average price per bale last week was £lB lis 9d, or 14.1 d per lb. THE HEMP INDUSTRY Some of the Manawatu fiaxmills have started. The number of millers operating, however, is fewer to-day than at this time last year. Many of them were facing a falling market when they started last year, and as the season advanced they realised that they were actually working at a loss, and the results at the end of the season failed to make good. A better tone in the hemp market would no doubt induce more mills to reopen, but there is no indication at the moment of such improvement. On the other hand, it is hoped that mills in the Foxton area will be able to supply hemp to the new cordage factory which is expected to be in running order early in the new year. New Zealand's requirements of wool packs (which it is expected to manufacture at the factory) amount to about 700,000 sacks per annum. Corn sacks and other similar containers should help the new industry if it is to be able to compete with imported goods, keeping the factory busy and utilising a New Zealand-grown raw material. AUSTRALIAN LOAN CONVERSIONS Steady progress is being made with the conversion of Australian loans in London, and each transaction so far has been attended with success. The conversion of £15,000,000 of Commonwealth 6 per cents, will be undertaken shortly (says the Melbourne Argus), and there is every reason to believe that a 4 per cent, issue with a fairly long term will be accented by the market. Since the last conversion, which was undertaken on a 4 per cent, basis, there have been several happenings favourable to Australia. The rise in prices for wool and wheat, satisfactory trade figures for 1932-33, increasing production of gold, and a good budgetary showing at the end of the financial year, should enhance the confidence of British investors. The London market is ready for such issues, and the success of recent loans bv Canada at 4 per cent., and previous Australian conversions, give every hope of successful conversion not only of the Commonwealth C per cents., but ot other loans carrying interest of more than 4 per cent., which are within optional dates of maturity. Reference was made in a recent cable message (adds the Argus) to the prospective conversion of, £300,000.000 of British stock. There is no British issue of that amount within optional maturity date, .and probably the operation will be designed to redeem Treasury bills, as the short-term Treasury debt is very large at present. Some month 9 ago tenders were called weekly for 2J per cent, stock, redeemable 194449 the proceeds being used to redeem Treasury bills. No mention of such operations has been made recently, and perhaps the £300,000,000 conversion now mooted will take the place of the other method. _.

RUGBY, September 23. p I Par. Sept 22. Sept. 23. Francs to £1.. 124.21 78 3-32 78 31-32 Brussels — Belgasto £1 .. 85 22.171 22.151 Oslo-— Kroner to £1. • 18.189 19.90 19.90 StockholmKroner to £1 .. 18.150 19.40 19.381 Copenhagen— Kroner to A1 .. 18.150 22.40 22.40 Berlin— Marks to £1 .'. 20.48 12.94 12.951 Montreal — Dollars to £1 .. ■ 4.88 2-8 4.61 4.89 New YorkDollars to £ 1 .. 4.88 2-8 4.791 4.78 Yokohama — Pence to yen 24.582 14 1-16 14 1-16 HongkongPence to dollars 24.58 17 17 1-16 BombayPence to rupee ■_ ,■ 18 3-64 18 8-64 Batavia — Florins to £1 12.10 7.65 7.65 Milan— . Lire to £1 .. 82.46 » 58 27-32 58 13-16 Amsterdam — Guilder to £1 12.107 7.60 767 Prague 1 — Kroner to £1.. 1041 104% 104| Geneva — Francs to £1 .. 25.224 15.961 15.951 Vienna?*Schlllingstofil 84.861 29 29 Helsingfors— Marksto £1 .. 193.23 2261 2261 MadridPesetas to £1 25.231 37 i 37 Belgrade— i Dinars to £1 .. 25.221 240 240 Athens— Drachma to £1 375 560 560 . Lisbon — . Escudos to £1 110 1021 1021 Bucharest — Lei to £1 ."-,. 931.6 525 525 Rio de. Janeiro 1 — Pence to iriilreis 5,890 4% 4% ; Buenos Aires — Pence to pesos 47.28 45 45 ShanghaiPence to tael .. — 15 9-32 15% Montevideo — Pence to pesos — 37 37 Warsaw— Zlotysto £1 .. ■— 27.68 —

Called-up Net Dividend. nay 31.' Capital. Reserves. Profit. Prer. Ord. £ £ £ p.c. p.e. 1920 . . 285.871 84,877 00.027 6 814 1922 . . 809.833 40,375 •23,090 6 — 1024 . . 309.8S7 10,108 •8,089 0 — 1920 . . 309.887 38 5,803 0 — 1927 . . 309,887 — 11,254 6 — 1928 . . 367.059 — 19,141 — — 1929 . . 200,300 20,098 18.039 tl2 - 1930 . . 260,080 29,972 2,973 — — 1931 . . 200,080 — •97.W1 — — 1932 . . 200,075 — •33,827 — — 1933 . . 254.807 * Lot is. t Tw( •15,443 i years.

Debentures .. •• Current accounts £ 240.333 40.310 147.490 434.133 £ 246,318 21.B93 127.702 395.013 £ 240,318 10.753 130.977 394.048 e 246.318 16.741 114.875 377,934