COMMERCE AND FINANCE

Otago Daily Times, Issue 22260, 12 May 1934, Page 9

COMMERCE AND FINANCE

| MINING . i BELL-KILGOUR RETURN * The secretary,of the Bell-Eilgour Gold $ Mining Company, Ltd., advises that the ft wash-up for' the week ended May II | amounted to 9oz sdwt 20gr from dcvelop- »■ ment work. * i - I SKIPPERS, LTD. Mr W. Morgan Gimson, consulting >; engineer to Skippers, Ltd., who visited | the claim on May 5, has reported to •S the directors that only 300 feet of Hum- % ing • now remains to be placed in ppsition in the Maori Point beach section. ! i The 900 feet already , installed had J suffered no’ill-effects whatever from the f recent floods. A span of 50 feet of J sheet piling had yet to be driven, but v the housing accommodation had been * completed. During. the last five weeks £ there had been a number. of floods, two 4 of which had been of considerable magui- | tude, but no damage whatever had been ! done to the plant or machinery.

MAEREWHENUA REPORT I The claim manager of Maerewhenua K Goldfields Development Company (Mr E. i Williams) reports that rain and snow s; have greatly increased the water supply, S and 45 heads had been entering the dams if on certain days. The water supply tor L- the last three week* had been the best k and most consistent since the races had | been in. operation. The mosquito race * was carrying at least 35 heads, and, by * the building up of s few low sections, I could be made to carry at least another j* 10 heads.

| KING SOLOMON RETURN | (Pei United Press Association.) I • S INVERCARGILL. May 11. j The return .from the: King Solomon ■5 mine for the week amounted to 88oz J sdwt.ii,■

f COMPANIES REGISTERED

{ The New Mercantile Gazette ■t records -the registration of the following $ companies:— _ S • M'Kinlay's Footwear Company, Lta. — f Registered as a private company April 19. ' Capital: £1725 into. 1725 shares of. fl each. Subscribers:. Dunedin —William MTOnlay 1200, N. D. M’Kinlay 100, HO. M'Kmlay 350, M. M'Kinlay 75, Objects: ■ To carry 'on all or any of the businefecs of makers, manufacturers, repairers, importers, and exporters and Wholesale and retail dealers of and in boots, shoes, and all kinds of footwear and leather goods. Hendry (W, iC.), Ltd.—-Registered; as a..private company, April 21. Capital: £IOOO into 1000 shares of fl each. Subscribers: Dunedin—-W. C. Hendry 990, A. Hendry 10. Objects: To carry on the business of bakers, pastrycooks, confectioners, and manufacturers of and dealers in bread, cake, biscuits, confectionery of all descriptions and other provisions. fMiller , (R,). and, Sons, Ltd.—Registered ajra private company,’April 23. J ' Capital: £6OOO into 5000 shares of £1 each. Subscribers: Clydevale—M. E. Miller 4999, A. I. Miller 1. Objects: To carry bh the business of a general storekeeper and Aerchant and incidental.

Beaumont (L-), Ltd.—Registered as a. private company, April 24. Capital: £IOOO into 1000 _shares of fl each. Subscribers: Dunedin—rL. H. N. Beaumont: 999, C. R. Beaumont 1. Objects: To carry > qb the business or businesses, of auctioneers, brokers, general agents, appraisers, ipdentors, importers, , exporters, and dealers in and of wool, hides and skins, and shipping and tourist agents. . " Portobello Gold No Liability.—Registered April 30. Capital: £7500, into 7500 shares of £ I eachf of 1 these 5000 are ordinary shares and 2500 founders’ shares. » Subscribers: Wellington—L. V. Ellis 2200 founders, R. Gilkison 1 ord., J. H. G. Rpbertson 1 ord;V E. L. Marchant 1 ord. Dunedin-—A. P. Bremner 100 ord;, J. H. ;■ Stewart 100 ord., G. A. Holmes 100 ord. Objects: To purchase, apply for, obtain and take on, lease. br otherwise .acquire Ijinds, hereditaments and prppertyi or any interest therein or in gold_ mines, mining S’rileges. and general incidental. !ound v Film;.Productions (1934) % 'istered April 30.' Capital: £2500 into 0 shares of £1 each. Subscribers: Dunedin—J. A. M'Donald. G. J. Barton, «T.| Trengrove, J.. D. T. Pearson, J.. G.. B6tler. ; o.' J. Cooke, E; Kerr,' 1 share each. Objects; To acquire from Sound Films Productions (N.Z.), Ltd., the whole d£i its property, undertaking and assets to carry on business of producers, manufacturers, distributors; vendors, and exhibitors of motion pictures of all kinds and genera] incidental.

INTEREST RATES . PROBABILITY OF UPWARD TURN, i Messrs H. Byron Moore, Day, and JourneaUX discus* the ‘ question of interest rates at some length in their latest monthly review. They conclude as follows:—/'' ■■;■/ , ■ ■■ • . During tie past few months there have been signs that confidence and enterprise are. returning, and the banks are looking forward to a period when borrowers will become more numerous. With greater demands for advances, interest rates naturally will harden, and the ■ discounting of Treasury bills will have to bo placed on a higher basis* unles„ Governments are in. a position to repay them. , i i It is probable that the - Commonwealth Government will take advantage of the existing cheap and plentiful supply of money' to approach tie market at an early date for a new long-term loan. Under arrangements already agreed upon, portion of this loan would be used for retiring Treasury bills and thus reducing the short term Indebtedness of the Government.:. ■ , ... ■ ' ' The exiting amount of credit avalli able Is unusually large; and, therefore, It may be reasonable to expect that the up- • ward turn In interest rates will be slower than usual, but at the same time Investors /' should be cautious, and for the time being endeavour to avoid a long-term policy and leave themselves In a position to v ’take advantage of the higher rates of .interest which ultimately must come. Alternatively, borrowers should cover their commitments for long periods at prevailing rates, which must be at or very near bottom ; rates. In the immediate future, .therefore, it is likely that many borrowers ~ Will approach the market, and the sudden demand for accommodation may itself influence a turn, in interest rates. The natural and lasting change, however, can- - not take place until world conditions improve and international trade grows to 'such an extent that will permit the free . Interchange of goods and general growth of Industry, the extension of which would > go far to absorb much of the capital now -* Idle- In practically ajl the Important coun- • tries throughout the world.

GISBORNE GAS COMPANY The directors of the Gisborne Gas Company, Ltd., report that the profit on the i year’s working amounts to , £2OOB 5s lid. After providing for depreciation, careful valuation of- stocks, and due consideration as to the worth of amounts owing to tiie company, the directors recommended that £450 be appropriated to income tax, £350 to a reserve for. plant -renewals, that the preference dividend be paid absorbing £635 4k Od, and the balance of £573 Is lid be carried forward to the credit of the profit and loss account. From this account it is proposed to write off against old plant the sum of £ISOO. . The directors draw attention to the substantial reduction effected in the liabilities of the company as compared with last year’s accounts. Although a dividend on the ordinary shares is not recommended, it is apparent to_ the directors 4hat the financial position of the company is rapidly improving. ’• busy stock exchange Indicating the unprecedentedly heavy flow* of business passing through the Stock Exchange at present, the afternoon call bn -May'2 lasted two hours, the longest period occupied by one call on record. In previous years a call rarely extended mor-’ than three-quartfrs of an hour. Increased activity during the last year or so and particularly since the beginning of this year, has lengthened the average to about an hour and a quarter. The pressure of business, states the Svdfiey Morning Herald, is due. largely to the sustained activity in gold Continuation of heavy dealings in gold shapes indicated that the keenness of the public interest in the market was undimirfished.

, NEW GUINEA SHARES (United Press Association.) - (By Electric Telegraph—Copyright.) LONDON, May 10. New Guinea shares are quoted at 6s Id. DOLLAR AND FRANC (United Press Association.) (By Electric Telegraph—Copyright.) LONDON. May 10, Exchange on New York is quoted at 5.11| dollars to the £ and on Pans at 77 5-16 francs to the £. LONDON STOCK EXCHANGE (United Press Association.) (By Electric Telegraph—Copyright.) LONDON. May 10. The following are the latest quotations of Goteminent securities compared with the prices ruling

FOREIGN EXCHANGES (British Official Wireless.) (United Press Association.) (By Electric Telegraph—Copyright.)

NEW ZEALAND PAPER MILLS EXTENSION OF PLAn£ The directors of New Zealand Paper Mills, Ltd., report for the year ending March 31 that after making provision for all bad and doubtful debts, for depreciation, and for income tax, there is a balance of £22,019 4s 3d, and deducting the interim dividend paid on ‘November 19, 1933, £4500, there is left available £17,519 4s 3d. The directors recommend that this amount be dealt with as follows: _ ' -Payment of dividend at the rate of 4 per cent, for the half-year (making 7 per cent, for the year) £6OOO, and carry forward £11,519 4s 3d, 'totalling £17,519 4s 3d. . The demand for the company s manufactures is reported as having been good during the. year, and prospects are of such at nature as to warrant extensions to the plant. Accordingly, arrangements are being made to install a new machine at Mataura which will enable the company to deal with an anticipated greater sale, and particularly with classes of paper which it has not hitherto exploited. An improvement in the hydro-electrical supply is also in contemplation. PETROL PRICES IN BRITAIN Much as it pleased the motorist, stated a London financial writer on March 25 last, the reduction in petrol prices came as a nasty shock to holders of'oil shares and to Stock Exchange dealers. Opinion in trade and Stock Exchange circles had recently favoured the probability of an increase in prices rather than the cut which was made. The reduction is not a result of conditions in the industry in America. Prices of all oil products have risen considerably during the last 12 months, and petrol is selling in the States at 2 to 2J cents a gallon more than a year ago. In knowledgeable quarters it is stated that the competition from independent petrol distributors, who are always a thorn in the flesh of the National combine, has showed signs of growing intensity during the six weeks up to the end of March. , Before this competition could become a more serious problem the combine has lowered the petrol price, and was even B repared to make another cut should lis not put a stop to the activities of the independents. Many tankers of petrol belonging to independent companies were on'the Atlantic at the time the reduction was made. This petrol had to be sold for much less than the owners had bargained for.

ELECTRICITY COMMISSION TRADING ACTIVITIES BANNED Ninety-five per cent, of the electricity generated in victoria is supplied by a State Commission. The commission, after being appointed, confined itself at first to the generation, distribution and supply of electricity. In 1925 however, it decided on a policy of trading in appliances, purchased large stocks, built new premises, and opened trading depots. By the end of 1026 a great electrical retail organisation was built up, arid there were complaints that it was making serious inroads into private trade. The Victorian Government has passed an Act to end the activities of the commission. The Act forbids the commission to carry on or engage in the business of trading in any electrical apparatus, or to enter into any agreement for the carrying out of electrical wiring installation in any premises other than its own. The commission is allowed to retain show rooms or depots for the purpose of rxhibirion or demonstration, and for these purposes only may it purchase electrical apparatus. If it exhibits and demonstrates with the electrical apparatus of any manufacturer or trader, it is required to come to a just and equitable arrangement. Certain limited scope with regard to repairing and reconditioning is allowed the commission when a request is made by an owner or occupier in any case where there may be no adequate facilities available locally.

CANTERBURY MARKETS (Per United Press Association.) CHRISTCHURCH, May 11. The advance earlier in the week in the potato market and the continuance ot rain, which interrupted digging, prompted the opinion that supplies in the North Island were becoming short, and that more prompt potatoes would be wanted. However, there appears to be a larger stock of Pukekohe potatoes than was anticipated, and it only required the prospect of a scarcity to reveal them. At all events the demand from the north has not been maintained, and to-day prompt whites are worth from £4 to £4 2s 6d per ton, f.0.b., s.i., or £2 17s 6d to £3, on trucks. Digging will not be resumed on a general scale until the middle of next week, as a good deal of the potato crop in North Canterbury received a thorough soaking. Farmers are not crowding the market at present prices. , " . Oats are meeting with very little inquiry, and the tendency is for values to case. A Gartons are worth to 2s 6d, f;o.b., s.i., and B Gartons to 2s 3d. Fowl wheat is quoted at 3s 3d, f.0.b., s.e. An easier tone is developing as the result of the improved wheat threshings. The May return represents an increase of from two to three bushels an acre on the early season forecasts,. and in.the aggregate, if the increase is maintained until the final threshings, a higher gross yield of about three-quarters of a million bushels. Partridge peas are unchanged at 4s 2d a bushel, f.0.b., s.i. There is no change in the small seeds market. SWAN BREWERY COMPANY (Per United Press Association.) WELLINGTON, May 11. The Swan Brewery Company will pay the usual preference dividend and also an ordinary dividend of 2s and a bonus of 6d on May 30. LONDON METAL MARKET (United Press Association.) (By Electric Telegraph—Copyright.) LONDON. May 10. (Recelrod May 11. at S p.m.)

LOAN-SALE POLICY AMERICAN WHEAT IN CHINA. One of the weapons used for raising prices is destruction; another is storage. Storage in some cases represents partial destruction, and could amount to complete destruction. Various foodstuffs come under the head of storage, and wheat is one of them. The monthly summary ot the National Bank of Australasia, Ltd., comments on the sale by the United States to China, at “a heavily-dumped price, of a big portion of the United States Pacific Coast 1 wheat. The bank concludes that there must have been fears in America that “ this wheat was going out of condition —a serious aspect of holding wheat which applies to any country where stocks are held for too long a period.” But the American sellers did more than cut the price to China; the transaction accompanies an American loan to China of 50,000,000 gold dollars, and it is provided that China must use approximately 10,000,000 gold dollars of the loan to buy American wheat and flour, flour milled in : the United States to be 40 per cent, of the whole. A significant feature is that this American loan, which sells American wheat iff China, is secured on Chinese' taxes, and the latter include'new taxes i (introduced a year ago, increased last December) on Australian flour and wheat. Australian interpreters now regard the Chinese motives behind these flour and wheat taxes as partly security for American loans, partly protection for Chinese flour-milling, and partly revenue. In so far as they raise costs to Chinese consumers, they tend to reduce the Chinese demand, china’s demand for Australian wheat and flour increased heavily when world-depression reduced prices, and as the Chinese are necessarily low-price consumers their demand is likely to be sensitive to any rise in price. The effect of the American dumping and of Chinese taxing is therefore being watched closely in Australia, whose diplomatic missioner, Mr Latham, is now in the E?st. Mr Latham tells bis hosts that he comes neither to buy nor sell. But politics, lending, and tariffs come within diplomacy, and are almost a part of price-structure. VICKERS* EARNINGS INCREASE IN PAST YEAR. The net profit of Vickers, Ltd., shipbuilders, engineers, etc., England, for 1933 was £543,364, an increase of £14,326 on 1932. A dividend of 4 per cent, for the year was declared on ordinary capital. General Sir H, A. Lawrence, who presided at the annual meeting of the company held in London, on March 26, related the position of the many subsidiaries of the company. During the year, he said, progress had been made in Great Britain toward industrial recovery, and unless some unforseen calamity occured, there appeared to be every prospect that the forces of recuperation would continue to bring about trade recovery. A return to prosperity in Great Bitain could not, however, be attained until other nations adjusted their internal difficulties and n feeling of international confidence was restored which would lead to an expansion of international commerce.

IDLE SHIPPING REDUCTION IN TONNAGE. Pai-tly owing to the large number of steamers sent to the ehipbreakers, helped in several important countries by subsidised demolition schemes, idle shipping throughout the world has shown a substantial reduction in the past 12 months. The late&t available statistics give a world total of 9,685,000 tons gross register, or approximately 16 per cent, of the total steam and motor tonnage in existence, whereas a year ago a similar compilation gave the total as 13,522,000 tons, or 20 per cent, of the tonnage then owned, and in October, 1932, the figures reached 15.000,000 tons, or 22 per cent. Japan, Greece, and Denmark are the most favourably placed of the maritime nations, with 4,5, and 6 per cent, of their fleets idle. Britain and Norway follow with 11 and 12 per cent., and Italy, despite her considerable Government subsidy, has 14 per cent. Holland has onefifth of her mercantile marine idle, France one-fourth, and the United States one-third.

Isst week;— Last week. This week. £ 9. d. S f. d; Consols .. .. .. •• •• 79 7 6 78 0 0 Funding Loan. 4 p.c., 1060-90 112 10 0 113 10 0 Assented War Loan .. .. 103 17 0 102 15 0 Conversion Loan, 3H p.c. .. 103 10 0 103 5 0 Victory Bonds, 4 p.c. (ex dir.) 111 5 0 111 10 0 C'wealth. B D.C., 1848-47 .. 110 IS 0 110 15 0 C'wealth, 6 p.c., 1945-47 .. 101 12 6 101 12 6 C'wealth, p.o,, 1930-37 102 13 9 102 12 6 Victoria. I p.o.. 1829-40 .. 95 0 0 95 5 0 Victoria, SH P.c., 1939-40 99 10 0 99 8 0 Victoria. 6 p.o., 1932-42 .. 107 0 0 108 17 6 Victoria. 4% P.C., 1940-60 .. 99 IT e — N.S.W., 3 p.c., 1935 .i 101 8 9 101 10 0 N.B.W.. 3% P.C.. 1980-40 .. 90 11 3 99 12 6 Queensland, 5 p.o. Stock, redeemable 1940-60 •• •• 107 10 0 107 8 p Queensland. 8 p.c,, 1822-47 #. 06 0 0 . 90 X 4 New Zealand. P*®»» 1945-57 107 5 0 107 2 New Zealand. 8H p.o.. 1040 101 17 6 103 0 0 New Zealand, 8 p.c., 1045 .. 97 8 0 87 13 8 New Zealand. 5 P.c., 1935-61 107 3 9 107 i 3 S.A., 814 P.O., 1838 .. .. 102 0 0 102 0 0 3. A.. 3 p.c., 1010 or after .. SO 0 0 SO 0 0 Tasmania, 314 P-0-, 1830-40 101 10 0 101 IS 9 Tasmania, 3 p.o., 1910-40 99 s < 99 Q 0 W.A., 8 p.e„ 1915-85 .. .. 101 1 e 101 i s W.A.,,8 p.o., 1930-40 .. .. 100 18 3 100 IT e

RUGBY, May 10. Purl*— Par. May 6. May 10. Francs to £1 124.21 77 13-32 77 9-32 Brussels— Belgai to fil 80 21.865 21.845 Oslo— Kroner to £ X 18.180 19.905 19.915 Stockholm — • 19.40 16.40 Kroner to £1 18.130 Copenhagen— ' Kroner to £X 18.150 22.305 22.391 Berlin — , Marks to £1 20.43 12.945 12.905 ■ Montreal — 5.105 1 Dollars to £1 4.86 2-3 5.105 New York — 5.111 ■ ; Dollars to. fil' ,4,88 2-8:5.125 Yokohama— * 14* 14* Pence to yen .. 34.582 Hongkong— 17* 17 Srl6 . Pence to-dollar 34.58 Bombay— Pence to rupee 18 3-32 18 3-32 .Batavia — 7.50 7:50 Florins to £1 12.10 Milan— Lire to £1 ... 82.46 ' 60% 59 31-32 Amsterdam — 12.107 7.54 7,53 Guilder to £1 Prague— ■?; - 122% 1225 : Kroner to £1 104i Geneva—; 15.755 15.78J 1 Francs ' to; £1 25.225 Vienna— ■' . 28 v ■ Schillings to £1. 84,865 28 Helsingfors— / 226* 226* : : Marks to £1 163.23 Madrid— ■■ 37 5-16 Pesetas to-, Cl 25.225 87 11-32 Belgrade— ,, 225 223 ; ■ Dinars ■ to fil 25.225 Athens— 530 Drachma to £1 375 530 Lisbon — 110 Escudos to £1 110 110 Bucharest— 910 ' Lei' to £1 .. 931.6 510 v Rio de Janeiro— 4* 4* Pence to mllrels 5.890 Buenos Aires— , y ■ 865 365 Pahte' to,, pesos , 47.28 Shanghai— : 151 15%, ‘ Fence to . tael — Montevideo — y. , 38| ; 38* Pence 'to. pesos. i k Warsaw — A ; 27 Zlotys to fil - — —

The following are tbe official mstal quotation# !— Copper. spot Ton e?2 is 9 Rise £9 IT e Copper, forward .. S3 1 *n No change Electrolytic, spot., SO o 0 Rise 0 5 i Electrolytic, forward S3 E 0 No change Wire bars .. .. S3 5 0 No change Lead, »pot .. .. 10 IS 0 Fan o a 0 Lead, forward .. U 1 0 Fall 0 a 3 Spelter, spot 14 IS 0 Fall 0 8 t Spelter, forward .. is a 3 Fall 0 S « Tin. ipot .. .. S36 U 3 RU« 0 IS « Tin. forward 232 IT 6 Rise 0 5 0 Pig Iron, home trade / 8 T 6 No change Pig Iron, export 8 2 3 No change Antimony, British 42 10 0 No change Antimony, foreign 20 10 0 No change Sllrcr, standard .. Oe. 19 S-Ud Fall Sid Stiver, fine .. .. 20 ll-13d Fall ll-10d Molybdenite .. .. Unit. I 16 0 No change Wolfram .. .. 2 1 8 No change