COMMERCE AND FINANCE

Otago Daily Times, Issue 22628, 20 July 1935, Page 11

COMMERCE AND FINANCE

CHRISTCHURCH STOCK EXCHANGE PAST WEEK’S TRANSACTIONS (Special to Daily Times) CHRISTCHURCH, July 19. During the past week the share market continued active, and the number' of transactions recorded on affiliated exchanges was a good weekly average. Price movements were irregular, but the general trend was in favour of sellers. The prices of several stocks showed noteworthy advances on the local market. Increased activity in Government issues more than compensated for the_ off in the banking and breweries sections. The shipping, coal, and gas sections were inactive. The following is a comparison of the daily recorded turnover on the local market for the past fortnight:—

Totals .. £29,669 £27,457 The 16cal turnover was made up as follows; —Debentures £12,400, banks £2206, pastoral £IO9O, refrigerating £1490, breweries £2146, gold mining £1859. The number of shares that changed hands in each section was: —Banks 658, insurance 100, loan and agency 1460, frozen meat 2500, woollens 550, breweries 1500, miscellaneous 5965, gold mining 15,300. Government Loans. —The following transactions were recorded:—3J per cent. Stock, 1959-43, £lO5 7s 6d to £lO5 ss; 1938-52, £lO7 17 a 6d to £IOB ss; 1939, £108; 4 per cent. Stock, 1946, £IOB 10s to £IOB 15s; Bonds, £IOB 12s 6d: 1949, £lO9 2s 6d to £lO9 10s; 1955, £lll 15a to £ll2.

Debenture Stock.—Amalgamated Brick (Auckland) 73 per cent, debentures, due 1944, changed hands at. £104; Amalgamated Brick (Wellington), at £lO3 15s; Auckland City per cent., 1944-67 and 1944-66, at £105; Booth. Macdonald 63 per cent. 1937, at £63 2s 6d; Christchurch Trams 4i per cent., 1952, at £105; Franklin Power 4i per cent., 1963, at £107; Mount Eden 43 per cent, 1961, at £107; Napier Harbour 4J per cent., 1959, at £lO5 10a: and Milne and Choyce debenture stock at 17s 34 >

Banks.—Australasia were at £ll. Commercial of Australia (cum dividend) showed little variation at 16s 9d and 16s 104. Commercial of Sydney advanced to £lB and £lB 2s 6d. English, Scottish, and Australian were firmer at £5 2s 6d and £5 3s. National of Australasia were stronger, with business in the £lO paid at £l2 I3fi'6d and in the £5 paid at £6 7s 6d. National of New Zealand (ex dividend) had dealings at 68a 9d. New South Wales moved up to £3l 15s, £32, and £32 2s 6d. _ New Zealand were firm at prices ranging from 52s to 51s Bd. Reserve Banks were firmer at £6 /9s to £6 9s 6d, and Union Banks at j£9 to £9 Is fid. Insurance and Loan and Agency.— National Insurance were easier at 21s lOd, 20s od, and 20s 7d, and New,. Zealafid 67a 9d. South British were steady at 98s 3d. Dalgety’s were firm at £8 4s and £8 ss. Dominion Investment and Banking had. dealings at 16s and 16s 6d, and Farmers’ Co-operative Auctioneering (£2 paid) at £1 4s. Goldsbrough, Morts advanced from 29s 4d. to 30s. New Zealand Guarantee Corporation were steady at 6s lid. United Building Society moved up to, 245. National Mortgage (B) changed hands at 32s 6d.

Shipping, Frozen Meat, Woollens, Coal, and’ Gas.—Northern Steam remained unaltered af 6s 6d. Union Steam preference rose to 27s 6d. Gear Meat were firm at 21s 3d and 21s. New Zealand Refrigerating were stronger, with deal* inga in the fully-paid at 20s to 20s 9d, and in the 10s paid at 9s 9d to 10s.

Kaiapoi Woollens (7s paid) moved up to 6s 2d and 6s 4d. Wellington ordinary had dealings at £6 17s 6d and £6 10s, Taupiri Coal -were fractionally firmer at 16s 7d, and Westports at 225. Auckland Gas advanced to 27s Bd, and Christchurch to 36s 3d, ' Breweries.—New Zealand (cum dividend) firmed from 54s 5d to 54s lOd, and ex dividend dealings were at, 53s 5d to 53s 9d. Queensland had business at 29s 9d. Staples were firm at 35s 6d, and Timaru (7s 6d paid) at 9s to 9s 2d. Tooth’s were firmer at prices ranging from 55s 3d to 54s 9d. Miscellaneous.—The following transactions were recorded, the number in parentheses after each- stock indicating the number of shares that/changed hands locallv:—Firmer: Anthony Hordern (1100) 19s lid, 20s, and 20s Id; Australian Iron and Steel (pref.) (700), 24s 5d to 24s 8d; Australian Glass (100), 70s 9d to 71s 6d; British Tobacco (700), 38s ' 6d to 39s 6d; Colonial Sugar (20), £44 to £44 12s 6d; Dominion Fertiliser, 23s 6d; Dominion Rubber, 28s 6d; Electrolytic Zinc (946), 27s 9d; Howard Smith i (200)) 16s 6d to 16s 8d; Hume Pipe, Australia (100), 15s; Kauri Timber (800), 20s 2d to 21s 6d) National Electric (100). 11s, 12s; National Timber, 13s 9d to 14s; New Zealand Farmers’ Co-operative A\ per cent. Stock, 1940 (£600). £B6 10s; 1959 Stock (£235), £BS; Sanford, Ltd., 3s 2d; Woolworths (New Zealand, ord.). £l2 10s and £l2 9s. Firm: Associated Newspapers, 23s 10Jd and 23s 9d; Broken Hill Proprietary (150), 59s Cd and 595: Electrolytic Zinc,(pref.), 355; Farmers’ Trading (ord.), 7s 3d and 7s 2d; (B pref.), 14s 6d; K D Y Boxes, 21s Od; Milburn Lime, 475; Mason, Struthers. 14s; New Zealand Paper Mills. 34s 3d; New Zealand Newspapers, 38s 6d; Taupo' Totara Timber (pref;), 19s 3d (ord.), 7s 6d; Consolidated Brick (300), 10s 8d and 10s 6d; Dunlop Perdriau Rubber (700), 16s 3d and 16s; D.I.C. (pref.), 24s 9d; New Zealand Drug (50), S2s 6d to 83s 6d; New Zealand Farmers’ Fertiliser, 20s 7d and 20s 2d; Parker Lamb Timber, 2s; Whitcombe and Tombs, 80s; Wilsons Cement, 38s 9d. Gold Mining.—The local turnover of 13,300 shares was made up as follows: Big River 1300, Gillespie’s Beach 400, Kildare 400. King Solomon 800, Lawson’s Flat 500, Mahakipawa 2300, Maori Gully 2000, Mataki 300, Mount Lyell 700, Mount Morgan 200, Skippers 4400. Bendigo GoldHghts were easier at 10s, and Goldfields Dredging at 3d. Big Rivers weakened from 2s 3d. to 2s, and Skippers to 2Jd and 23d. Consolidated were firm at 15s 3d; Gillespie's Beach at Is sd; Kildare at 3s; King Solomon at 3s lOd and 3s 9d; Kuala Kampar at 12s; Lawson’s Flat at 43d and 4d; Mahakipawa at 6d; Mossv Creek at 2s 6d; Mount Morgan at 30s lid and 375; and Okarito at 5s 9d. Maerewhenua were firmer at 2d;

Mataki at Is lOd to 2s; Mount Lyell at 19s Id to 19s 8d; Murray Creek at 2s 6d: North Broken Hill at £9 ss; Peninsula Tin (15s paid) at 3d; Waihi at 37s 6d to 38s: Grand Junction at 4s and 4s Ijd; and Maori Gully at Is sd.

BRITISH DAIRY IMPORTS HALF-YEARLY RETURN. The New Zealand Dairy Board has received cabled advice from London statins that British import* of dairy produce for the six months ended June 30 compare as follows: Butter. Cheese. 6 mos. Tons. Tons. 1935 252,277 70,807 1934 268,068 77,276 1933 229,267 78,43? Increased imports of butter for the first half of the current year, compared with those of 1934, were from Australia, Irish Free State, Netherlands, Estonia, and certain British sources, but New Zealand, Denmark, Russia, and some Baltic countries showed decreases. Of the total imports of cheese for the first half of this year, amounting to 70,807 tons, New Zealand contributed 55,674 tons, Canada 1114, Netherlands led foreign suppliers with 5640 tons, compared with 3054 tons for the first half of 1934. British re-export trade in butter (which is usually Australian and New Zealand) during June was 238 tons, compared with 224 tons for the first half «f last year.

LOCAL AND OVERSEAS MARKETS.

MINING NEWS MAORI GULLY REPORT The Maori Gully Gold Dredging Company reports that the dredge is now halfway through first narrow part of claim. After passing through this part, the dredge will enter a wider area until the gorge proper is reached, possibly in six to nine months’ time. ADDISON DREDGE RETURN (Pee United Press Association) WESTPORT, July 19. The Addison return for the fortnight ended July 13 was 220 z 7dwt for 36 shifts. KING SOLOMON RETURN " 1 (Pee United Pbess Association) INVERCARGILL, July 19. The King Solomon return for the week was 740 z lOdwt. WAIMUMU SLUICING COMPANY (Pee United Press Association) INVERCARGILL, July 19. The Waimumu Sluicing Company’s return for 14 days was 360 z 16dwt. BULOLO SHARES {United Press Association.) (By Electric Telegraph—Copyright.) . LONDON, July 18. Bulolo shares are quoted at £7. BANK OF ENGLAND RETURN (United Press Association) (By Electric Telegraph—Copyright) „ LONDON, July 18. The following Is the Bank of England return: — ISSUE DEPARTMENT. Note issue in circulation .. £399,567,687 Bank department 63,149,154 £452,716,841 Government debt .. .. £11,015,100 Other Government securities 246,623,007 Other securities 675,119 Silver coin 1,686,774 Gold coin and bullion .. 192,716,841 • < , £452,716,841 BANKING DEPARTMENT. Proprietors' capital .. .. £14,553,000 Rest 3,520,668 Public deposits 7,883,273 Other deposits (bankers) .. 103,582,360 Other accounts .'. 38,844,776 £168,384,077 Government securities .. .. £91,886,044 Discount advances ._. .. 9,270,901 Securities 13,549,485 Notes in reserve 53,149,154 Gold and silver coin .. .. 622,403 £168,384,077 Tbe proportion of reserves ’to liabilities is 35.70 per cent.. Short loans are quoted at J per cent.; three months’ bills at 3 per cent. DOMINION INVESTMENT AND BANKING ASSOCIATION NET PROFIT OF £7802. (Pee United Press Association) AUCKLAND, July 19. A net profit of £7802 was earned by tbe Dominion Investment and Banking Association, Auckland, for the year ended June 30. The profit compares with £7586 in . the previous year and £8974 in 1933.' The sum of £919 was brought forward, making £8721 available. The directors propose to distribute this as follows; To the payment of unchanged dividend of 4 per cent, on all classes of shares £6501, to the reserve fund £IOOO, increasing this fund .to £6OOO in addition to the contingency reserve of £3500, and to carry forward £1220. The directors state that the year’s _ business has reflected more stable conditions and returning confidence in national affairs. sale: of warehouse A SPEEDY TRANSACTION. (Pee United Press Association) * AUCKLAND, July 19. Within a few minutes the warehouse of Messrs P. Hayman and Company in Customs street east was sold at public auction to the Farmers’ Co-operative Auctioneering Company, Ltd., the price being £BOSO. The opening bid was for £6500, the price rising quickly by the amount of £250 and then by' amounts of £IOO to £BOOO. A rise of £SO closed the transaction, the general opinion being that an excellent property had been obtained for a favourable price. The warehouse, which has road access at the back, is only CO yards from Queen street. The building, which is of brick, comprises four storeys and a basement. The property, which has a frontage of 99 feet to Customs street east, is held on lease from the Auckland Harbour Board for a term expiring in 1948 at an annual rental of £370 with half compensation for the building at the end of the lease. A new lease can be obtained if desired.

BRITISH STEEL TRADE A MARKED IMPROVEMENT. The British steel trade position is stronger than at any time within the last 30 years, reports the Sheffield Chamber of Commerce, notwithstanding a much less than normal demand for shipbuilding steel at Home, and the serious export difficulties only too well known to traders. “We are. making and converting more than 800,000 tons of steel per month, compared with a' monthly average of 638,600 tons in the pre-war record year when, shipbuilding waa in full activity, and there were no serious foreign exchange setbacks or import restrictions,” the chamber adds. "Our output is wonderful in view of the altered circumstances. It is due, of course, in the main to the substitution of steel for wood, brick, and stone_ in many lines, and this substitution—this score for steel—is consequent on the improvements made in steel manufacture.

“ By fuel economy schemes, by improved mechanical methods, and by metallurgical research work, our steel makers are able to offer steel at an average per ton price only slightly above the pre-war level, when labour and material costs were much lower tnan to-day, “And this is not all. Steel is so much superior that lighter plates, bars, rods, etc., will etand the wear and stresses which only much heavier products could stand in times' past, wdth the result that actually, per unit of utility, steel is cheaper than ever it was. Contrasted with this, timber, bricks, and stones are considerably more costly.” BANK OF NEW ZEALAND LONDON TIMES COMMENT. The results of the Bank of New Zealand for the 12 months ended March 31 must on the whole be considered favourable, and inasmuch as the newly-formed Reserve Bank of New Zealand has been in operation since August 1 last, the figures may provide some reassurance as to the effect of the new Reserve Bank on the v/orking of the commercial banks (states the London Times in commenting on the bank’* report). The year was marked by welcome signs of recovery in economic conditions in the Dominion, and the reaction of the recovery in the banking position has been seen in a rising tendency in overdrafts and larger recoveries of debts previously written off.

LONDON METAL MARKET (United Press Association.) (By Electric Telegraph—Copyright.) LONDON. July I*. (Received July 19, at 8 p.m.) The following are the official metal Quotations; — Ton.

FOREIGN EXCHANGES (British Omclal Wireless.) (United Press Association.) (By Electric Telegraph—Copyright.) RUGBY, July 18. Paris— Par. July IT. July 18. Francs to £l 124.21 74 25-32 74 41-64 Brussels —

ON NEW ZEALAND CURRENCY BASIS The Bank of New South Wales, Dunedin, quoted the following rates for purchases and sales of foreign exchange yesterday:— London— Buying. Selling. £N.Z. to filOOstg T.T. 124 124/10/O.D. 123/10/- 124/8/9 Australia—

DOLLAR RATES The Associated Banks (other than the bank of New South Wales) quoted the following dollar rates yesterday on a New Zealand currency basis. They are subject to alteration without notice. U.S.A, Canada (per f 1 (per £1 N.Z.) N.Z.) Selling— dols. dols T.T 3.975 3.973 O.D 3.97| 3.983 Buying— ‘ ■O.D ;. 4.023 .4,025 BUTTER PRODUCTION THE AUCKLAND PROVINCE. (Per United Press Association) AUCKLAND, July 19. It is estimated that the average payment to the dairy farmers in the Auckland province for the season now ending will be about 9)d per lb butter-fat net. The net payment in the previous season was probably a shade under 9d per lb. Approximately every Id per lb butter-fat is worth £1,000,000 to the province. The ' increased payment this season means a distribution of about £600,000 more. Production in the province, however. is about 3 per cent, lower for the season, and this probably reduces the extra distribution to from £350,000 to £400,000. The cheese factories have not fared so well during the season as the butter factories, judging by the trend of London prices. There has been some mention of certain cheese factories turning over to butter production, while dual factories in the province have been considering their position. PALMERSTON STOCK SALE Although very few cattle and sheep were for sale at the stock sale, held on Friday, fairly good prices were obtained. Sheep.—Fat wethers sold at 20s, good fat ewes at 13s to 17s. Cattle. —Empty cows brought from 20s to 30s; dairy cows, from £3 to £4; a cow and calf fetched 37s 6d; fat heifers sold from £G to £7 2s 6d: fat cows, from £3 to £4; a store steer brought £S 10s; and a fat bullock, £5 17s 6d.

Pigs.—Suckling pigs brought from 9s to 15s and store pigs 20s. Horses. —A hack brought £B, and another was passed at £4 (reserve price, £5).

CHRISTCHURCH MARKETS INCREASED POTATO VALUES WAIPIATA’S BIG SHIPMENT (Peb United Press Association) CHRISTCHUECH, July 19. Mainly because of a heavy shipment totalling 14,103 sacks taken to the North Island yesterday ip the Waipiata the potato market in Christchurch showed a slight weakening for the day, but this is the first check since the rise set in a fortnight ago. There has been some demand from the north, but in the opinion of some merchants not nearly enough to justify the prices which were reported to have been offered farmers and paid to merchants among themselves. The values, they claim, are entirely fictitious, especially as there is now only two months of the season left._ The market is extremely difficult to judge because everybody interested in potatoes has a different idea of values, and is able to quote instances of actual _ sales which range over £1 from the highest to the lowest. Sales f.o.b Dakotas at more than £9 and of whites at £8 10s are reported. The Waipiata lifted 1359 sacks from Bluff, 6844 from Timaru, and 6900 from Lyttelton, a load that should keep the northern market quiet for some time. Another heavy boat will sail next week, but it is unlikely that it will be as heavy as the Waipiata, which was a record for the season, and probably for last season, Too. In the meantime, while trade is in an almost hysterical condition over the market, farmers continue to hold on to what they have. Only small lots can be bought because the farmer, having seen potatoes rise about £2 in the last couple of weeks, is afraid to sell now lest they go still higher. Quotations on trucks have varied. One merchant yesterday quoted £5 15s to £6 5s for whites and £7 for Dakotas, while another quoted £6 15s to £7 for white and £7 to £7 5s for Dakotas. Auguet-September quotes for whites are up to £8 10s and £9 10s for Dakotas, f.o.b. . The big shipment by the Waipiata seems to indicate that there will be no shortage of potatoes in the South Island, and there is little prospect now, with the Sydney market slipping, of a shipment to There lias been inquiry for oats during the week, Gartons being quo,ted at 3s 3d. Dmifl have also been asked for, and are worth 3s to 3s 3d. . . Very little business is passing in chan. The email-seeds trade is undergoing the usual mid-winter _ calm, and practically no business is being done.

CANADIAN RAILWAY TRAFFIC After declining steadily in the five years to 1933, traffic on the Canadian Pacifier Railways has increased in each of the Inst two years, and the directors expect the recovery to continue in the current year. In 1934 gross earnings increased by 10 per cent., while working expenses increased by only 6i per cent. The greatest increases in tonnage were in in products of mines, forests and factories. while, on the other hand, revenue from carrying agricultural products declined. the reduction taking place mainly in grains. From 1923 to 1930 the total annual inspections of grain on all railways in Western Canada averaged 425.000. bushels, whereas the average from 1931 to 1934 was only 323,000,000. mainly because of drought in 1933 and 1934., A marked revival in the movement of “durable goods” (hardware, machinery and other goods used in buildings and other activities involving the outlay of capital) is encouraging, as it reveals that important industries are recovering from the depression. Between 1928-29 and 1933 the tonnage of durable goods declined by two-thirds, while the reduction of consumers’ goods was only one-third. In 1934, however, the tonnage of the main classes of durable goods was 50 per cent, greater than in 1933, against which the increase in consumers’ goods was only 7 per cent. THRIFT DISCOURAGED Thrift on the part of people generally (says the Sydney Bulletin) is a great national asset. If, instead of living beyond their incomes in times when work is plentiful and wages high—this is usually the time when pianolas and other time-payment articles are indulged insomething were put by for the inevitable rainy day, the saving would do mych to curb inflation during a boom, and establish a public-spending reserve when conditions took a downward dip. The spendings of wage-earners constitute one of the greatest factors in determining whether business conditions —and employment—• are good or bad. “As things are in Australia at the moment,” the journal continues, “ there is no form of obligatory saving or assurance. Consequently those in jobs, and those with property income, are paying heavily in special taxation to support the jobless. Given, say, 10 years of fair conditions, a sound unemployment assurance scheme with levies on half the scale of the. present unemployment relief taxation would have provided against present industrial hardship in a far better way than the dole. The very fact of savings or premiums being taken out of public spending power during prosperous conditions would mean less rise in boom-time prices, and less fall when the inevitable slackness came along.”

ORDERS FOR BRITAIN i STEEL AND AEROPLANES FOR DOMINION. Prominence is given in the London Times of June 8 to large steel and aeroplane orders placed or about to be placed in Great Britain by New Zealand interests. The Times states that the contractors for the new head office of the New Zealand Government Life Insurance Department in Wellington have ordered £35,000 worth of steel from the United Steel Companies, Ltd., Sheffield, to be used 'in the construction of the building. The New Zealand Public Works Department has also placed a contract for seven transformers with the British Electric Transformer Company, Ltd., Hayes, Middlesex, for service on their Arapuni power scheme. The newly-formed Union Airway Company of New Zealand will soon,, it is stated, order f 100.000 worth of aeroplanes from British firms for the Dominion’s air mail and passenger service. Mr N. S. Falla, a director of the company, has arrived in England to make the purchase. Referring to the steel order, Mr G. W. Forbes, the New Zealand Prime Minister, stated in London that his Government had stipulated in its contract that the steel was to be ordered from a British firm, although the price quoted was £4OOO above that of the lowest tender. Mention is also made of the revision of the New Zealand tariff on china and earthenware, and it is stated that Britain now holds 85 per cent, of the New Zealand pottery market, compared with 76 ner cent, before the tariff was removed. RECENT AUSTRALIAN LOAN NATIONAL BANK’S COMMENTS. The ■ National Bank of Australasia, commenting in its latest circular on the public under-subscription of the recent internal loan, states that the partial failure is generally attributed to the size of the loan, rather than to the rate offered. “ It is evident,” the bank states, “ that public feeling is opposed to the extent to which Governments are borrowing or attempting to borrow, and, further, there is a growing feeling among investors that more definite information should be supplied about the works, etc., upon which loan moneys are to be expended. Loan expenditure, unless it be on works truly productive, means increased taxation, which to a large extent has to be borne by those subscribing to loans. It is not unnatural, therefore, that investors are feeling that information, somewhat less vague than has been supplied in the past, should be made public, either in the prospectus or through the press. “Another aspect of the matter which calls for consideration is the extent to which funds are available for investment in new Government loans. The movements in banking figures for the past twelve months clearly disclose a call for money for trading and industrial purposes. leaving less in the market for loan investments. Even a small excess in borrowing demands upon the loanable resources of the community has disturbing effects upon the investment market.”

GOLD IN NEW ZEALAND THE LOW-GRADE AREAS. " The amount of gold contained in lowtrade areas in New Zealand might easily je sufficient to pay the national debt, and [ do not doubt that every encouragement ivill ultimately be given by the Governnent to assist the exploitation of such areas,” said Mr E. G. Pratten. chairman if Alluvial Gold, Ltd., Melbourne, at arecent extraordinary meeting of shareholders in that company. “ It is the opinion of your directors, he added, “that a little more encouragement should be afforded by the Government on the principle that gold mining is equally as important a primary industry as the production of wool and mutton. It requires no commercial agents to sell, and is the only product in Australia and New Zealand to-day which the world will take in unlimited quantities at a settled price without quotas.” Mr Pratten said that the New Zealand Government collected a tax of 12s_ 6d an ounce on gold exported, though it was understood that consideration was being given to cancelling the tax. A large amount of exploratory work has been done in New Zealand by Alluvial Gold, and 120 areas have been examined, many of which have been extensively bored, with the result that only three, viz.. Barrytown, Kanieri, and Arahura Valley, have so tar been proved of sufficient value to warrant equipment under present conditions. Extensive deposits of low-grade easily dredgeable ground have been disclosec., but the values are not sufficiently attractive to warrant equipment, which of necessity would need to be on a very large The company has made arrangements with the Commonwealth Government to make an examination of the country between Darwin and the Western Australian border of the Northern Territory, and to that end an engineer and staff are leaving for Darwin forthwith. Developments in Papua are definitely encouraging, and every assistance is being afforded by the Administration to develop 'the resources of both Misima and Woodlark Islands.

THE BONDHOLDERS’ CHAMPION

The sixty-first annual report of the Corporation of Foreign Bondholders records the results of arduous but tactful work during a year of continued world depression and default. The council (says the Economist) has taken a praiseworthy initiative in dissuading numerous countries from measures detrimental to their own and their bondholders’ interests, preventing the seeds of default from taking root, and, in hard cases, tempering the difficulties of the depressed without sparing the recalcitrant. The report, as usual, affords a convenient epitome of the corporation’s efforts and achievements. Its account of the German negotiations and the powers taken by the British Government to set lip a clearing office is a particularly useful record. The story of the Mississippi default, now over a century old r was brought a stage further by the decision of Chief Justice Hughes, in May last year, that the application of _ the Principality ot Monaco for permission to sue on the repudiated bonds could not be sustained. The decision was apparently based on the ground that it was contrary to the intention of the Federal Constitution that a State of the Union should be sued by a foreign State without its own consent. The prospects of eventual return on the bonds would therefore seem indefinitely remote, but it says much for the council’s tenacity that it has vigorously opposed this classical default to the utmost of its power. There is a wry hint of satisfaction in' the council’s note that, for the first time since 1859, Mississippi has made a financial effort on account of the debt, even if only to fight her creditors and not to pay them. The report includes tables giving particulars of the finances of many States. Its description of recent economic trends, the world over, will be invaluable to bondholders, who, in the event of any substantial revival in international trade, may derive from it a complete guide to ‘ form in the recovery stakes.

WOOL FREIGHTS POSITION IN AUSTRALIA. The Australian Graziers’ Association has expressed its keen dissatistaction with the rates and conditions of wool freights. The freight rate of wool is lid a pound, plus 5 per cent, primage, and minus 10 per cent, rebate to buyers, and Is 9d a bale “ loyalty rebate ’ to buyer's, resulting in a net freight to shipowners of 1.003 d sterling a pound. Ims rate was stated to be higher than the freight from New Zealand and was 10 per cent, higher than the rate for frozen meat from Australia, an anomalous position, it is stated, in view of the fact that meat was a much more expensive cargo to handle. In Argentina the wool freight was only one-third of the freight charged on meat.’ The woolgrowers agreed to wool remaining within the scope of the Australian Oversea Transport Association provided that an agreement can be reached with the ship owners on four points. l These are: —Future wool freights to be negotiated annually between woolgrowers and ship owners. A reasonable freight reduction in wool to be made. All percentage rebates and primage. to be abolished, but objection not to be taken to a loyalty bonus at a flat rate not exceeding Is 9d a bale. Any agreement arrived at to be operative for the 1935-36 wool export season

Mr F. du Boise, chairman of the Overseas Shipping Representatives’ Association, has informed the Graziers’ Association that there is no possibility whatever of any reduction in the wool freights as desired.

Country Party members of the House of Representatives may take some action to bring about a realignment of wool freights, failing a suitable settlement between woolgrowers and overseas shipping companies. .It is probable that steps will be taken to bring about an amendment of the Industries Preservation Act, enabling open competition. It has been pointed out that ship owners outside the conference lines could guarantee valuable rebates, despite intensified shipping competition. ' PRICE OF CIGARETTES The action of one firm of manufacturers in reducing the price of certain brands of its cigarettes, which took effect in the retail and wholesale trade as from Tuesday, makes cigarettes available in New Zealand at the lowest price at which they can be bought in England and cheaper than they have ever been in this country since cigarette smoking reached its present magnitude. One brand is selling at 4d a packet of 10. The three brands, which are manufactured in New Zealand and, therefore, have a slight advantage in taxation over imported cigarettes, have each been reduced Id a packet—from 5d to 4d, and from 7d to 6d for 10 cigarettes, and from Is to lid for 16.

Retailers in Christchurch, when interviewed by a Press reporter, were chary about making predictions of what is likely to happen in the cigarette market. While admitting the possibility of a general reduction in prices, they were doubtiul whether other firms would care to provoke a “ war ” by cutting their prices as a reply. If that happened there was likely to be a big boom in cigarette sales. However, it was stated that such a reduction would leave manufacturers a very slight margin of profit. Tobacconists did not think the present reduction was an attempt to divert patronage from the practice of smokers in making their own cigarettes, a practice which now had not only the support of custom, but also of the Customs duty.

RUBBER FOR RUSSIA The value of Soviet Russia’s purchases of rubber in Great Britain during April last amounted only to £lOOl, compared with £117,141 in the corresponding month a year ago. This sharp fall in the Soviet’s foreign purchases of a raw material essential to the implementing of the second Five Year Plan is accounted for by the rapid increase in internal sources of production. As long ago as 1932 it was announced that a rubber productive plant called Tau-sagis had been discovered. It flourished in a temperate climate at altitudes between 3000 and 4000 feet. The roots weighed between 21b and 4lb, and gave a 40 per cent, lactic yield, from which about 15 per rent, of pure rubber could be obtained. Beyond this source of supply, there is the development of synthetic methods of manufacture to be taken into account.

WOOL BY BARTER Despite the compounding of fabrics as substitutes for wool, Germany would he a good buyer of the staple in Australia (says the Melbourne Argus) if means could be devised for payment. Until the end of May last Germany had imported only 94,959 bales of Australian wool, compared with 414,429 bales in the previous wool season. Owing to the difficulty oi arranging external credits, German buyers have been compelled to curtail their operations. Several efforts have been made to arrange for the exchange of Australian wool for German goods, but the Australian tariff so far has barred progress in that direction. Another effort is being made to barter German iron and steel manufacturers for Australian wool. The negotiations are being conducted by a visitor from Germany, who, it is understood, represents interests P re Pared to take Australian wool valued at £3,000,011U. Here again the tariff question has been raised, but the assurance has been given that the iron and steel manufacturers will be of a class not yet produced in Australia. It is represented also that they will not compete with British products, but many affect only importations from the United States and other countries. Trade by barter is already in operation between a few countries, but the business is very difficult to conduct. Once a product has been sold conditionally the process of maintaining conditional ownership until possession is obtained of the goods in exchange may be troublesome and costly. Obviously such a transaction depends wholly upon the security offered bv the prospective purchaser, and probably it will be on this point lhat German wool buyers will experience difficulty in satisfying Australian wool owners. SELF-SUFFICIENCY ' TREND IN ITALIAN TRADE. “Italy is making a determined effort ' to offset the effects of unstable currencies, high protection policies, and exasperated economic nationalism, which are paralysing the international movement of goods, capital, and services, states an official survey of Italian trade 'and industry. The method she is using, the survey adds, involves the ‘ mobilisation of all her latent wealth-producing The economic situation in Italy is conditioned by circumstances beyond her control, and according to the official statement she has no choice but to protect her balance of payments and the stability of her currency by those exchange and trade restrictions to which, at long last, she has been forced to have recourse. It has become imperative to reduce the trade deficit if the formation of frozen indebtedness is to be avoided. In the meantime, the home production of raw materials is being rapidly developed. The possibility of using hempen fibres instead of, or in union with, cotton is being tested, and the Cotton Institute recently granted 1,000,000 lire for this purpose. Italian agriculture is now using calcium nitrate instead of imported Chilian nitrates; Italian supplies of pyrites, sulphur, lead, and zinc are being more fully utilised, and an aluminium industry using local raw materials has been built up. Heavy acids, phosphatic fertilisers, and synthetic nitrogen are now manufactured on a large scale under Italian patents, and a great national chemical industry is growing up. Acetone obtained from carbide has allowed of the development of the acetate rayon industry, and rapid progress has been made in the production of the whole gamut of organic and synthetic chemical products. The Beet and Sugar Guild has just taken action to secure a substitute for petrol by distilling alcohol from sugar beets. Italy now consumes annually about 500,000 metric tons of petrol, and the immediate aim is to replace 20 per cent, of this amount by home-produced spirit. This will entail an increase of the present acreage (212,000 acres) under beets, which, by the way, are admirably suited to recently-reclaimed lands. The plan adopted provides for an output of 600,000 hectolitres of spirit in 1938, rising to 800,000 in 1937, and to 1,000,000 in 1938. That the Government is aware of the drawbacks of a policy of self-sufficiency was made clear by the Under-secretary for Guilds when he addressed the Senate on the Estimates for his department. He said that the elasticity of the home market had afforded relief to leading industries which had suffered severely from the total or partial closure of their foreign markets; but he also emphasised the great importance of the export trade to Italian manufacturers and farmers, and the impossibility of relying solely on the home market, which could not expand indefinitely. Nevertheless, the survey suggests, Italy must persevere with her new policy until political security and the consequent revival of confidence allow of conditions favouring a return to normal trade relations, and until a stable ratio between the pound sterling and the dollar removes the main cause which keeps the exchange and financial markets of the world in a state of uncertainty and agitation.

SILVER MARKET THE REGENT FLUCTUATIONS. Movements in the silver market over . the past six months indicate (says the Evening Post) that the price of the metal is still far from stable, and, no doubt, some heavy losses have been made by speculators. This year opened with bar silver quoted in London spot price at 24j|d per oz. In November, 1933, the price was down to 181 d in London but on May 15 last it had reached 35Jd, then rising in six days from on May 9, and that price was Ijd under what it was on May 7. These day-to-day fluctuations in the price of the metal were attributed to what the London Economist described as the American “silver racket.” In the autumn of last year the United States Treasury began to buy free silver in the New York market with the object of strengthening the monetary reserves until they consisted of one-quarter in silver and three-quarters in gold. In paying an enhanced price for silver obviously the United States dollar was automatically cheapened. As the Economist pointed out, the sequel to this policy was the creation of “an atmosphere which has proved conducive to speculation,” for the steady increase in the price of silver set in. As the authority quoted saw the position, “ the American Treasury is in a position to raise the world price of silver as high as it desires,” and, the criticism of the Economist concluded, “the American silver policy has run amuck, but the ruin is falling on other heads.”

MUTUAL SUPPORT irOR INTERNATIONAL EXCHANGE. The comment made by the Daily Herald (London) on the decision of the Bank of International Settlements that, in future, the central banks shall currency speculators, indicates the difficulties which will confront Governments if and when they agree on giving mutual support for the stabilisation of currencies. Financial weaknesses of a country encourages speculation against that fcountiy’e currency. The onslaught is, in the first place, usually from non-speculators, from persons, who, fearing for the safety of their capital, desire to get their money away, and for that purpose are prepared to make sacrifices. The exchange value of the currency having thus been lowered, the speculators come in, and by forward sales, beat it down still lower, hoping to make their profit by covering at a still lower rate. Take the example of France. The panic of May arose because people, and among them French citizens, believed that, on account of the unstable state of French Government finances, the currency was in danger. Aggregate of French deficits for five years ended 1934 was 27,617.000,000 francs (about £460,000,000). The people of France refuse to bear the taxation which would prevent further deficits. Hence the fear of the future of the currency. People of another country may well become anxious in their turn if they find their Government using their funds to support a foreign State whose people refuse to tax themselves into budgetary equilibrium. The taxed have to use their taxes to support those who refuse to be taxed. The panic that prevailed in France during the last days of May and the early days of June is seen in a review nf gold imports into the United Kingdom from France. During the week from May 27 to June 3. there wits imported into the United Kingdom from France gold of the value of £15,947,517, and there were exported to France from the United Kingdom gold of the value of £1,590,949, making a net import of £14,356,568.

BEET SUGAR (United Press Association) (By Electric Telegraph —Copyright) LONDON, July 18. Beet sugar, August, 4s Sid. NEW PAPER MILLS A WHAKATANE ENTERPRISE. (Per United Press Association) WHAKATANE, July 19. A definite commencement was made ■ with the work of the establishment _of paper mills at Whakatane yesterday, 2500 sleepers, the first shipment of the 18,000 required, being landed at the mill site wharf. The contractors for the construction company’s railway to link the bush with the mill are commencing work today on the line and the preparation of the mill site. It involves an expenditure of £30,000. It is expected that tenders for the erection of the mill and equipment will be let early next year. The whole project is estimated to cost £500,000, and to have an output of 30,000 tons per annum. The directors anticipate that the mill will be completed and working by the end of 1936. COMPANIES REGISTERED The Mercantile Gazette notifies the regisration of the following companies:— Stronach Morris and Co., Ltd. Registered as a private company June 19. Timaru Lime Company, Ltd., Registered as a public company July 11. Office: 241 a Stafford street, Timaru. Capital: £13,000 into 13,000 shares of fl each. Subscribers: Timaru —P. A. Elworthy 100, P. S. Enting 1, M. M. Enting 1. Christchurch —W. L. Hughes 100, C. L. Purdie 1, F. G. Dunn 1. Dunedin —J. Richardson IQO. Objects: Lime manufacturers, colliery proprietors, coal and coke and incidental. THE GRAPHITE TRADE Germany is again buying graphite from Ceylon. Sir Henry De Mel Lazapathi, of Colombo, the largest owner of graphite mines in that country, states that in 1934 Ceylon exported 3600 tons to the United States, 3900 tons to Japan, and 1600 to the United Kingdom. Before the war Ceylon supplied 80 per cent, of the world’s requirements, but Madagascar is now making an effort to share the market. MESSRS E. REECE, LTD. The directors of Messrs E. Reece, Ltd., (Christchurch), in submitting to shareholders the eighteenth annual report of the company for the period from February 28, 1934, to May 31 last, state: Although competition has been very keen, there has been a decided increase in the turnover of the business, which has resulted in a more satisfactory profit for the period under review. At the extraordinary general meeting of shareholders held on October 10, 1934, the nominal capital of the company was reduced by the cancellation of the unallotted ordinary shares and the reduction in ya-ue of the preference and ordinary shares. This procedure has enabled the directors to write off the old debit balance of profit and loss account, and they are now in a position to deal with any profits made by the company. The balance sheet now submitted shows a net profit of £1238 2s sd, which the directors recommend should be dealt with as tollows: —By payment of a dividend for the period of 2J per cent, on preference shares, absorbing £612 10s, and by carrying forward the balance, £625 12s sd, ECONOMIC MARKETING In some branches of primary industry (says the Melbourne Argus) there is a feeling among producers that if boards are formed to control their produce an excellent opportunity will be provided to make consumers pay a price for their requirements which will return a substantial profit to men on the land. It is proposed that any boards that may be formed shall comprise two producers and one Government representative. A board so constituted may do more harm than good to tlie industry it represents. Marketing ot produce is most important. It requires knowledge which can be gained only by years of experience. It may be possible to determine higher prices, but it will be necessary for any board to act cautiously. It must first study the statistical position of the produce it controls, then form some idea of possible requirements, and next, the prospect of disposal of the surplus, should there be any. should be directed to maintaining a healthy demand. Often there is a tendency in producers when prices are rising to restrict offerings which could be sold at very profitable prices. In these circumstances values sometimes attain a level which has the effect of curtailing consumption. When there is a shortage of a commodity the way is open to demand high prices, because. although generally the consumers demand may decline heavily, there is always a number of people who are m a position to pay for what they want.

This Last Week. Week Saturday .. .. £3,176 £2,506 Monday .. .. 7,795 4,479 Tuesday .. .. 7.493 5,039 Wednesday .. .. 3,937 6,738 Thursday .. .. 4,250 4,513 Friday 5,182

Copper, cpot £31 8 0 Fall £0 5 7H Copper, forward ,, 31 16 1056 Fall 0 5 0 Electrolytic, spot.. 35 0 ,0 Fall 0 5 8 Electrolytic, forward 35 5 'o Fall 0 5 0 Wire ban ,, 35 5 0 Fall 0 5 0 Lead. Boot .. .. 14 17 6 . Rise 0 10 0 Lead, forward .. 14 18 0 Rise 0 10 0 Speller, spot .. 14 2 6 Rise 0 6 s Spelter, forward .. ,, 14 T 6' Rise 0 7 6 Tin. spot .. 234 17 6 Rise 2 0 0 Tin. forward .. 224 18 9 Rise 0 6 3 Pig Iron, boms trade S 7 6 No change Pig Iron, export S 2 8 No change Antimony. British 74 10 0 No change Antimony, foreign 48 0 0 Unit. No change Molybdenite .. ,. 1 14 6 No change Wolfram ,, 1 11 0*. 0 No change Sllrer, standard ,. 30 3-16d No change Sliver, fine ,. ,. 32 9-16d No change

Belgaa to £ 1 Oslo-e SO 29.36 29.32 Kroner to £1 Stockholm— 18.180 19.905 19.905 Kroner to £ 1 Copenhagen— 18.130 19.395 19.395 Kroner to £ 1 Berlin - 18.150 22 22 Marks to £ 1 Montreal— 20.84 12.275 12.26 Dollars to £1 New York— ' 4.86 2-3 4.96| 4.065 Dollars to £1 Yokohama— 4.88 2-S 4.96 1-16 4.958 Pence to yen .. Hongkong— 24.582 145 145 Pence to dollar Bombay— , 24.58 251 25| Ponce to rupee Batavia— 135 185 Florins to £1 Milan— 12.10 7.235 7.235 Lire to £1 .. Amsterdam— 82.46 60 1-16 69 15-16 Guilder to £1 Prague— 12.107 T.275 T.265 Kroner to £1 Geneva — 104J ' 1185 118g Franca to £1 Vienna— 25.225 15.13 15.11 Schillings to £1 Helsingfors— 84.865 26 26 Marks to £1 Madrid— 193.23 2261 226} Pesetas to £1 Belgrade— 23.225 86 3-32 86 1-32 Dinara to £1 Athens— 25.225 216 215 Drachma to £1 Lisbon— 315 516 516 Escudos to £1 Bucharest— 110 1105 1105 Lei to £1 Rio da Janeiro— 831.6 485 485 Pence to mllrels Buencs Aires— 6.890 4i 41 Pence to pesos 47.22 ' 865 86| Shanghai— Pence to tael Montevideo— — 18 18-10 18 13-16 Pence to pesos Warsaw— — 891 391 Zlotys to fi 1 26.06 28.06

£A to £100 N.Z. T.T. 101 ' 100/10/O.D. 101 100/10/Fiji— £F to £100 N.Z. T.T. 80/7/6 89 O.D. 90/7/8 89 New York— Dollars to £1 N.Z. T.T. 4.01| 8.97i O.D 4.02g 3.978 Montreal--Dollars to £1 N.Z. T.T. 4.018 8.98 O.D. 4.08 8.988 Franco60.61 59.31 Francs to £1 N.Z. T.T. O.D. 60.91 59.36 Noumea— 58.56 Francs to £1 N.Z. T.T. 81.56 O.D. 61.96 58.61 Papeete— 61.58 58.56 Francs to £1 N.Z. T.T. O.D. 61.96 58.61 Belgium— 23.248 Belgas to £1 N.Z. T.T. — O.D. — 23.203 Germany— Reichsmarks to £1 9.646 ' N.Z T.T. — O.D. — 9.651 Italy— 47.46 Lire to £1 N.Z. T.T. •— O.D. — 47.60 Switzerland— 11.863 Francs to £1 N.Z. T.T. 12.S63 O.D. 12.438 11.973 Holland— Florins to £1 N.Z. T.T. 5.970 5.720 O.D. 6.020 5.724 Java— Florins to £1 N.Z. T.T. - 5.923 5.698 O.D. 5.973 5.702 Japan— N.Z. pence to 1 17 13-16 , yen T.T. — O.D. — — Shanghai— N.Z. pence to 1 23 15-18 dollar .. .. T.T. 22 g O.D. 22i 23i India and Ceylon— N.Z. pence to 1 rupee .. .. T.T. 228 22 23-32 O.D. 22i 22 21-32 Hongkong— N.Z. pence to 1 dollar .. .. T.T. 31 3-16 82J O.D. 31 1-16 32 3-16 Singapore— N.Z. pence to 1 35 5-32 dollar .. .. T.T. 34 7-32 O.D. 34 3-32 35 3-32 Sweden— 15.791 Kroner to £1 N.Z. T.T. 15.461 O.D. 15.831 15.471 Norway— 1 Kroner to £1 N.Z. T.T 16.202 15.872 O.D. 16.242 15.882 Denmark — Kroner to £1 N.Z. T.T. 18.208 17.873 O.D 18.248 17.888 Austria— < Schillings to £1 N.Z T.T. — 20.57 O.D. —- 20.59 Czechoslovakia — Crowns to £ 1 N.Z. T.T. — 94.77 O.D. — 94.82 i' These rates are subject o alteration without jnotlce.