COMMERCE AND FINANCE

Otago Daily Times, Issue 22564, 7 May 1935, Page 13

COMMERCE AND FINANCE

LOCAL AND OVERSEAS MARKETS

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

THE AUSTRALIAN MUTUAL PROVIDENT SOCIETY

OPERATIONS IN NEW ZEALAND. Sir William Hunt, as a delegate from the branch directorate in New Zealand of the Australian Mutual Provident Society, speaking at the annual meeting of the society last week, said that for the third successive year since the difficult days of J 931 the Ordinary Department new business written in the Dominion had shown a > substantial increase, the total of £2,899,561 being over £500,000 in excess of the previous year. Coupled with this had been the greater success attendant upon efforts for the conservation of the existing business—surrenders, lapses, and the cashing of bonuses all having shown substantial decreases. The resultant increase in business in force had been most gratifying, and he felt it a privilege to be able to record the fact that, according to the latest Government returns, the society held oyer 41 per cent, of the life assurance business of the Dominion, despite the fact that there were 14 offices operating, whilst of the_ total assets of £39,816,500 invested by life offices in the country, the society’s funds accounted for £17,409,849. Obviously, the society had been a material factor in the Dominion’s development. In the Industrial Department the increased new business for 1934 was a clear indication of the faith placed in the society by those of small, incomes, and still greater progress during the current year was confidently predicted. The administration of the society’s investments in the Dominion had in recent years, Sir William Hunt said, called , for particularly dose attention from the local board and the management, but the conservatism which had characterised the investment policy of the past years had lightened their task immeasurably, and they took great satisfaction in the fact that the difficult days since 1930_ had merely tended to throw the stability of their position into even greater relief. As far as the mortgage investments were concerned, they felt that they could face the future with equanimity. It had been necessary in recent years to extend consideration to numbers of mortgagors to tide them over particularly difficult periods, and though the integrity of the funds had necessarily been the prime consideration in such circumstances, yet they had, by rendering material assistance in some cases and exercising reasonable forbearance in others, been able to enhance the society's goodwill in the Dominion to a remarkable extent. The bulk of their mortgage advances had been made on broad-acre securities, and despitethe heavy fall in the value of farm produce, the local board still felt that, with the country’s dependence on its primary industries, first-class country properties continued to furnish excellent security. The direct outcome of the enhanced goodwill to which he had referred had been an increased inquiry tor loans on broad-acre securities, and the firstclass investments which they had- thus been able to secure were, in themselves alone, more than justification for the policy which had'been pursued. He accorded a meeff of praise to the endeavours made by the mortgagors as a whole to fulfil their obligations. _ The past year had seen a very substantial reduction in the outstanding interest, and though the complete liquidation of this item had not been possible, yet the individual efforts put forth had invariably ■ received the recognition due to them, and the local board felt that, with this body of mortgagors, the future could be faced with every confidence. HOWARD SMITH. LTD. IMPROVEMENT IN PROFIT. 1 An increase of £36,811 to £83,979 is shown in the accounts of Howard Smith, Ltd., Sydney, investors in shipping, coal mining, and sugar businesses, for the year ended December 31. In 1953 _ the profit rose to £47,168 from. £22,333 in, 1932. -A. sum of £IO,OOO has been appropriated, as a reserve for taxation and contingencies, and the dividend on the 6 per cent, preference shares requires £15,000. The ordinary dividend is raised from 14 per cent, to 24 per cent., and requires £50,000. Against £17,328 brought into the accounts, £26,307 is carried forward. The directors state that no dividends have been received from the company’s large investments in coal, iron and steel, and cement.

MINING NEWS BIG RIVER GOLD MINES, LTD. The report of Big River Gold Mines Ltd. for the week ended April 30 states that in the No. 4 north drive the rise has been extended tfive feet; the total distance driven up being 7 feet above the back of the level and 10 feet from the north face. _ The rise is following the reef formation, 5 feet wide with stone 18 inches wide. A start has been made to drive the face of the level ahead north. Work on the No. 5 stope is in progress, the stone being 5 feet wide. Rise 45 feet up, distance driVen south 18 feet. The reef has split here, and one section carries stone 2 feet wide, while the other section is 18 inches wide. In the No. 4 south drive the south face has not been extended. Stope No, 3 is looking well, and the stone is 6 feet wide. Filling is nearing completion in the main shaft, but has been delayed, owing to repairs necessary to the shaft, higher up. The battery is working two shifts per day. GILLESPIE’S BEACH REPORT The secretary of Gillespie’s Beach Gold Dredging Co. Ltd (Mr F. R. Thompson) advises that the wash-up for the last week was 14oz' 14dwt for 131 hours’ dredging. SOUND POSITION NEW ZEALAND INVESTMENT COMP4NY. At the annual meeting last week of the New Zealand Investment, Mortgage and Deposit Company, Ltd., Wellington, the chairman of directors, Mr Gerald Fitzgerald, in moving the adoption of the report and balance sheet, said shareholders’ capital was unchanged at £35,500, The reserve, which was increased last year to £12,000, would he raised again this year to stand at £13,000. Depositors continued to show their confidence in the management and the amount under this head at £76,058 was slightly greater than last year. Investors, £1223, was made up of a number of small accounts accumulating to a round sum in a fixed period by modest monthly payments on whicn ■liberal interest was allowed.

Of the assets of the company, continued the chairman, the main item was, of course, the amount out on mortgage. ThD at £118,821 was less by £4440, which mainly accounted for the increase in the credit at the bank to £5898. Interest current (£599) ryaa somewhat less, while the company's properties (city freeholds) were reduced to £3445 by the depreciation shown. The net result of the profit and loss account waa approximately £l5O better than the previous year at £2518 Is Bd, which, with the amount brought in from the last statement added, totalled £5025 14s 4d. From this an interim dividend of 2 per cent, had already been paid and, the directors now recommended a final dividend of 3 per cent., making 5 per cent, for the year, and, with £IOOO added to reserve, the carrying forward of £2250 14s 4d. The payment of a 5 per cent, dividend and the transference of £IOOO to reserve has during the past two years necessitated the trespassing (though to a lesser degree thi s year) on the substantial carry-forward figures. The directors looked forward with confidence to the time when the yearly earnings of the company would be sufficient to meet these allocations without such recourse. Indications pointed to a resuscitation of the mortgage side of the business and the item should tend to increase. The report and balance sheet were adopted. Mr John S. Swan was reelected a director and Mr O. G. Kember was reappointed auditor. AUSTRALIA’S GOLD UNHEALTHY SPECULATION. “Gold is the only primary product which can be exploited without harm to Australia, and exported into a world market eager’to obtain it,” said Mr A. A, Robertson, head of the department of metallurgy and mining at the Melbourne Technical College, in an address recently. Mr Robertson said that the gold output was rising, but very slowly. It was . 600,0000 zin 1931, 700,0000 z in’ 1932, 830,0000 zin 1933, and 882,0000 z in 1934. _ It was possible that the production in 1935 might amount to nearly 1,000,0000 z, and quite possibly to 2,000,0000 zin 1940. If achieved, this would add at least £10,000,000 to Australian exports and keep secondary industries busily employed, “ We have just passed through a period of unhealthy speculation in gold shares, and the market is suffering a reaction,” said Mr Robertson. “ This type of speculative boom should be prevented at the outset because stability and confidence must be present before a plentiful supply of capital is forthcoming, and goldmining requires a large amount of Capital.” Mr Robertson said that mines and minefields wepe vanishing assets and their useful life under common methods of exploitation rarely exceeded 70 years. Viewed collectively, Australian metal resources were poorer to-day than ever before. If a nation, could establish its secondary manufacturing industries on a sound basis before its internal metal resources began to fail, it might hope to continue them over a considerable period. ANDERSON’S LIMITED Satisfactory, results for the year ended March 31 were revealed in the annual report of the directors of Anderson’s Limited, Christchurch, which was submitted to the annual meeting of shareholders last week. The report, which was presented by the chairman of directors (Mr W. G. Jamieson), stated:— In submitting the accounts for the year ended March 31, 1935, your directors have pleasure in reporting that the company has experienced a substantial recovery from bad trading conditions. An increased demand for the company’s products, combined. with a further reduction of working costs, have secured the return of a better margin of profit than has been possible for the last few years. Stock values have again been carefully scrutinised, and ample provision has been made for the depreciation of obsolete and slowselling stocks.

During the year the plant and equipment in both works have been kept up to a high state of efficiency, minor improvements and additions having been carried out. In addition, a general reorganisation of the Christchurch works lay-out has been completed. The reorganisation of selling and buying departments is now complete and working smoothly, with resulting economies in raw and finished stocks.

The accounts for the period show a net profit of £8217 15s lOd, and yonr directors recommend the payment of dividends and the allocation of profit as follows:—2.B per cent., arrears of dividend on first preference .shares. as detailed in scheme of arrangement dated June 9, 1934, £1400; 5 per cent, dividend on first preference shares, £2500; 5 per cent, dividend on second preference shares, £890; 2J per cent, dividend on ordinary shares. £825; income tax reserve. £800; dividend equalisation reserve, £1500; carry forward. £302 15s lOd. NEW ZEALAND LAMB PRICES 1 With reference to the prices realised for Now Zealand lamb delivered to Smithfield Market, the New Zealand Meat Producers’ Board supplies the following table, giving the equivalent New Zealand parity, after deducting all costs, including soiling commission. The costing is based on to-day’s estimated skin values and includes exchange at current rates The calculation is on the basis of a prime woolly lamb weighing, say, 341 b delivered at freezing works:— ‘ . N.Z. “ overall’’parity If price delivered delivered at works to Southfield is: (approximately) (d. per lb.) (d. per lb.) 0,61 GJ 6.46 In the above estimate the costing of killing, freezing and placing on board steamer is based on a charge of .575 d per lb.

RECIPROCAL TAXATION AGREEMENTS IN AUSTRALIA. INCLUSION OF DOMINION. Victoria was successful recently in arranging a reciprocal taxation agreement with New South Wales, by which income derived from that State on which unemployment and special relief taxation had been paid was not subject to such taxes in Victoria. A suggestion has been made (says the Melbourne Argus) that New Zealand also should become a party to reciprocal taxation agreements. It is pointed out that New Zealand allows unemployment relief taxation paid on income derived from Victoria by a resident of New Zealand, but Victoria does not allow income,received from New Zealand by a resident in Victoria. Efforts are being made to arrange an agreement with South Australia, but several difficulties are in the way. In South Australia unemployment relief is paid but of general revenue, and there is no specific unemployment relief tax* although the rate of income tax has been increased to meet demands for the relief of unemployment. This places difficulty in the way of a reciprocal agreement for remission* of special unemployment taxation. DENTAL AND MEDICAL SUPPLY COMPANY DIVIDEND OF 2} PER. CENT. The directors of the Dental and Medical Supply Co., Ltd., report a net profit for the year of £1723, compared with £926 last year. In the last 12 months business has steadily improved, states the report, each of the four branches showing an increase in sales over the figures for the previous year. Ample provision has been made for bad and doubtful debts, and stocks have been taken at cost or market prices, whichever is the lower. Furniture, fixtures, fittings and motor cars have been depreciated at the usual rates, and premises have been written down by £471. The net profit for the year, £1723, with the balance brought forward, £37, makes a total of £1760 available for distribution. The directors recommend the payment of a dividend of 2i per cent., absorbing £1445, ajod leaving a balance of £315 to be carried forward. Mr W. E. A. Gill retires from the directorate and is eligible for re-election. POTATO EMBARGO ONION TRADE AFFECTED. The Victorian Onion Corporation meeting at Colac last week heard Mr G. A. Street, member for Corangamite, on the New Zealand onion trade. He discussed with the board the desirability of continuing negotiations with New Zealand regarding the export trade in onions. The chairman (Mr T. Carmody) said that prior to the enforcement by New Zealand of the embargo against Australian products, the onion trade was a valuable one, and steps should be taken to regain it. Mr E. O’Toole said that as the New Zealand trade would prove valuable, the board should actively associate itself with any movement to bring about trade with New Zealand. Mr Carmody pointed out that Japanese onions were being imported into New Zealand, and prices had risen in that Dominion. The price there at the present time was £l4 per ton, and would probably go higher. Mr Street promised to arrange "with the Minister for a deputation from the corporation to wait on him and discuss the question of reciprocal arrangements being entered into with New Zealand. MEAT EXPORT TRADE Neii Zealand sends Great Britain 12,0007000 carcasses of lamb and mutton every year. This is more than half the amount received by that country from overseas. And yet New Zealand sent its first consignment Home jdst over 50 years ago. It totalled 4909 carcasses, and was carried by the sailing ship Dunedin. New Zealand (says the Hotel and Catering Weekly, a London journal) is fortunate in being richly endowed by Nature for successful sheep raising. Its climate greatly contributes to this. . The success of New Zealand lamb has been achieved more especially by the care given to the production of an article to suit the requirements of the British market. Through careful study and scientific breeding from the finest meat-pro-ducing strains, Southdown, predominating, New Zealand has succeeded in producing lamb carcasses which carry more meat and less i bone than any other lamb. The product is also strictly graded for quality before leaving New Zealand.

Meat experts often describe these carcasses as being just like “ peas in a pod.” This is a comment on their uniform quality and high standard of grading. It means that every joint, of New Zealand lamb will be found to yield the maximum meat with only just that sufficient quantity of bone necessary to carry the quality. New Zealand markets her lamb all the year round, so that supplies are always available. Every carcass is officially guaranteed pure by Governmentappointed veterinary inspectors.

Paris— Par. RUGBY, May 3. May 4. May 4. Francs to £ 1 124.21 73 23-64 73 23-64 Brussels — Belgas to £1 30 28.59 28.59 Oslo— Kroner to £1 18.180 19.90} 19.90} Stockholm— Kroner to £ 1 18.130 19.39} 19.39} Copenhagen— Kroner to £ 1 18.150; 22 22 Berlin— Marks to £1 20.34 12.02 12.01 Montreal— Dollars to £1 4.86 2-3 4.85} 4.85} New York — Dollars to £ 1 4.86 2-3 4.84 4.832 Yokohama — Pence to yen .. 24.582 14 5-32 14 5-32 Hongkong— Pence to dollar 24.58 283 29} Bombay— Pence to rupee 18} 18} Batavia — Florins to £ 1 12.10 7.11} 7.11} Milan— Lire to £1 .. 82.48 58 11-16 58 11-16 Amsterdam — Guilder to £1. 12.107 7.16 7.16 Prague— Kroner to £ 1 104} 115| 1151 Geneva— Francs to £ 1 25.22} 14.95} 14.96 Vienna — Schillings to £1 84.86} 26 26 Helsingfors— Marks to £ 1 193.23 226} 226} Madrid— <> 85 7-16 Pesetas to £ 1 25.22} 35 7-16 Belgrade— Dinara to £ 1 25.22} 213 213 Athens— Drachma to £1 37.5 607 609 Lisbon— Escudos to £1 110 110 110 Bucharest— Lei to £1 .. 931.6 480 480 Rio de Janeiro — Pence to mllreis 5.890 41 4} Buenos Aires— Pence to pesos 47.22 36} 36} Shanghai— Ponce to tael _ 20 5-16 20} Montevideo — Pence to pesos 401 40} Warsaw— , Zlotys to £1 — 253 25}