COMMERCE AND FINANCE

Otago Daily Times, Issue 22718, 2 November 1935, Page 9

COMMERCE AND FINANCE

% FREE STATE LOAN CONVERSION H (United Press Association) ; i- ? (By Electric Telegraph—Copyright) \ \ LONDON, October. 3L The Irish Free State is converting a £7,000,000 l(San at 4 per cent., redeemable at par on December 1, 1970. Both \ principal and interest are exempt from taxation to non-i/esidents. ,\ DOLLAR AND FRANC (United Press Association) .{By Electric Telegraph—Copyright) : LONDON, October 31. Exchange on: New York is quoted at .4.91.3-16 dollars to the £, and on Paris at 74| francs to the £. BALCLUTHA STOCK SALE "' (Special to Daily Times) BALCLUTHA, November 1. Attendance : at the fortnightly sale today ? ; was ; not : so large as usual, and the same., remark -applies to the entry of ;i;." sheep.; Fat sheep were: easier.in price. A : line* Of outstanding woolly ewes sold at •".' 335; shorn fat ewes .(good), 235; others, .16s; shorn—wethers, 21s to 235; woolly •■'.'.-; wethers,,to 275;;;-'-'•"; ■■-.'■•• v.-:.. :'■■' "•".':>'-. Store'i sheep only a few pens •/J.-r'of hoggets. ' Outstanding ewe' hoggets' .'j sold at 36s Id, other ewe-hoggets 25s to ,': 265. ... ..--.- .;'>•;•;- _.. '■-■<■ There was a. good yarding of. cattle. :."-:' Fat bullocks sold to £10; fat cows (best). - ;to £4 10s and £4; 12s 6d, £9; others, two- ':" rear-old steers,: £4; -young store bullocks ','-' made £5 16s to £7; steers,-to £4.155; two--year-old heifers, £3 to £4. „..;." ; Dairy Cattle. —A large entry, including drafts, of young'heifers close to • J profit from the high country. These, al- • though somewhat in the rough, sold fairly ~'■ well,at £2 17s 6d to £3 for best quality, ...inclose to- profit, and £1 10s 'to £2 5s for others.. .Best dairy cows made £4 to £4 15s: 'good second calvers. to £4 10s. It was noted that the increased retail price for butter was not reflected in the prices ruling for cows. Pigs were in very keen demand, and small suckers were snapped up eagerly at 15e to 17s, and better-grown at 21s to ;..245. •; DAIRY PRODUCE • The National Mortgage and Agency Company, Ltd., is in receipt of the following cablegram from London:— Butter: Market quiet. New Zealand finest, 105 s to 106 s; New Zealand first, 103 s to 104 s; Danish, f.0.b., 124 s to 1265; f.0.b., 104 s; Australian, 105 s to 106 s. Cheese: Market steady. New Zealand, white and coloured, 52s to 535; Canadian, 54s to 58s. Messrs Dalgety and Co.. Ltd., advise having received the following cablegram from their head office. London, dated October 31: — The butter and cheese markets are slow. Danish butter, f.0.b., 103 sto 104 s; New Zealand finest butter, 104 s to 106 s; Australian, finest unsalted butter, 108 s to 110 s, finest salted butter 104 s to 106 s; ' g.a.q., 100 s to 102 s. • . Cheese: Australian, white and coloured, not quoted; New Zealand, white 52s to • Vs3s, coloured 52s to 535; Canadian, white ; ', 54s to 595, Coloured. 54s to 595, c.i.f. not quoted. /. - ; - A. S. Paterson and Co., Ltd., are in receipt of the following cable ad- ■', "vice from London: — " A 'Butter: Market quiet. Buyers inactive. New "Zealand, 105 s; Australian, Cheese: Market steady. White and coloured, 52« 6<L

LOCAL AND OVERSEAS MARKETS.

LONDON STOCK EXCHANGE (United Press Association) (By Electric Telegraph—Copyright) LONDON, October SL The following are the - latest quotations of Gotemment securities compared wlt.b the prices ruling last week:—

WHEAT, FLOUR, ETC. LONDON, October 31. Wheat.—Cargoes are steady. Parcels are fairly active. Futures —Loudon: February, 25s sd; April, 25s 4d. Liverpool: October. 6s 6id; December, Gs 2£d; March, 5s lOd, 7s 8d; May, 5s 10.{d. Ihe spot trade is occasionally easier. Australian, ex-ship, 32s 6d. Flour is quiet, Australian, ex-store, ids 3d to 23s 6d. THE FLAX TRADE MARKET MOVEMENTS. The New Zealand flax market during the past six weeks lias passed through a most interesting phase. After a lowlevel of values extending to as tar back as 1930, when the demand was inactive and uncertain, an unexpected interest was displayed in the fibre by overseas buyers, and that at prices which showed definite margins of profit to producers. During the past year or so the average price of high fair grade New Zealand flax has been £l4 per ton, but about the middle of August the price improved by easy stages to £l7, and it reached £2l by the end of last month, but business done at £2l lasted for but a few days. Subsequently the market receded until to-day £2O is about the free-on-board value. A weakness has 6ince developed in the market, and it ie reported that difficulty is being experienced in finding buyers at any price, the inference being that sellers have been over-optimistic or that the buyers, having unnecessarily advanced their prices, are now waiting for the market to assume a level at which they will be disposed to do business. From information available it would appear that high fair is worth to-day about £l9 per ton, low fair £l7 10s. common £l6 10s, and rejected £ls. Tow has not an active inquiry, and prices are about £8 per ton for No. 2 and £6 for Ho. 3 grades.

MINING NEWS WORKSOP EXTENDED RETURN A Reef ton Press Association message states that the Worksop Extended dredge return was 104 oz 'for 138 hours. The quantity of material treated wag 11,000 yards. BULOLO AND PLACER DEVELOPMENT Mr F. G. Dunn, attorney for Clutha Development, Ltd., has received the tollowing cablegram from Sydney:—"Placer Development and. Bulolo Gold Dredging have declared interim dividends of 50 cents and 1.40d0l (Canadian) respectively per share, less the Canadian absentee tax of 5 per cent. The dividends will be payable, after the exchange rate adjustment, on December 20. The books .will be closed from November 13 to 20 inclusive." KING SOLOMON RETURN (Per United Press Association) INVERCARGILL, November 1. The return at the King Solomon mine this week was 330 z 4dwt. GOLDFIELDS DREDGING COMPANY Messrs W. A. Mitson and Co., secretaries of the Goldfields Dredging Company, Ltd., report having received telegraphic advice from the dredgemastev stating that a waslmp of 21oz 15dwt was won for 148 hours' dredging. BANK OF ENGLAND RETURN (United Press Association) (By Electric Telegraph—Copyright) LONDON, October 31. The following is the Bank of England return: — ISSUE DEPARTMENT. Note issue in circulation .. Bank department 54,795,100 £454,68»,975 Government debt . .. . . "WJfrJW Other Government securities 246,157,302 Other securities J't?X'i?i Silver coin .. 1,542,417 Gold coin and bullion .. .. 194,683,975 £454,683,975 BANKING DEPARTMENT. Proprietors' capital .. .. £14,553,000 Hest 3,148,351 Public deposits 26,225,911 Other deposits (bankers) .. 82,524,413 Other accounts 38,552,152 £165,003,827 Government securities .. . • £85,889,999 Discount advances 11,210,370 Securities 12,270,367 Notes in reserve .. ..... 54,790,100 Gold and silver coin .. . - 837,991 £165,003,827 The proportion of reserves to liabilities is 37.70 per cent. Short loans are quoted at 1 per cent.; three months' bills at 19-32 per cent. • CANADIAN WHEAT (United Press Association) (By Electric Telegraph—Copyright) OTTAWA, October 31. (Received Nov. 1. at 8 p.m.) A denial of rumours that the Government intended to force Canadian wheat on the market, even at sacrificed prices, followed a meeting of the Cabinet Wheat Committee. KAURI TIMBER COMPANY (Per United Press Associationi AUCKLAND, November 1. A dividend of 5 per cent., subject to audit, is recommended by the directors j of the Kauri Timber Company, Ltd.. Melbourne, for the year ended August 31. The company paid 3 per cent, last year and 2 per cent in 1933.

CHRISTCHURCH STOCK EXCHANGE PAST WEEK'S MARKET (Special to Daily Times) CHRISTCHURCH, November 1. The most noticeable development of the week has been that the war news has ceased to be the main topic of conversation and people have been content to go alone with their jobs without paying too much regard to the unpleasantness in Abyssinia. The consequence has been an immediate strengthening of the tone of the Stock Exchanges which have shown throughout the Empire a much healthier activity than they nave for some weeks. In England there has been a resumption of trading, not, perhaps, on the very firm basis that was ruling before the European situation began to look serious, but still on very solid lines. Almost without exception British and Dominion Government issues have increased in price in London and trading has been more active than for some time. The Australian Exchanges have been in the same more optimistic condition apd, though trading has been done with discretion, investors have shown no tendency to hold back from stocks they want. New Zealand has followed the general trend closely, the notable exception being the weakness of Reserve Bank and Mortgage Corporation issues which, owing to the fear in the minds of some holders of possible developments if the Government is beaten at the elections, have sagged. Some holders have been prepared to get out at prices lower than seems warranted but, as both the Labour and Democrat Parties have promised wide changes that will affect both institutions, the market has been weak. The local Exchange, in spite of having been closed for Labour Day, showed a substantial increase in turnover and, in general, the wider selection of securities dealt in showed a firming tendency. The turnover was £29,829 cgajnst £24.321 last week. Not a great deal of interest was taken in Government or local body issues, but there were a few transactions. The 4 per cent 1937-40 issue was done at £lOl 12s 6d, a loss of 7s 6d since the last dealing a fortnight ago. Sales were made of the 3J per cent. 1938-52 at £lO4 7 S 6d and the 5J per cent. 1939-43 at £lO2 12s 6d. Christchurch City 4:]: per cent. 1940-47 were sold for £lO2 10s, and the 4J per cent. 1939 issue for £lO2. North Canterbury Hospital Board 41 per cent. 1943 had a sale at £lO3, and Lyttelton Harbour Board 51 per cent. 1943 at £lO3 15s. • The banking section was very dull indeed, only odd sales being made. The 10s Commercial of Australia were a penny cheaper in two sales at 16s 7d. E.S. and A, at £5 6s were on a slightly higher level than they reached last week. New Zealand at £2 10s 9d were a shilling up on the last sale and were at the point they reached at the beginning of the month. There were several sales of South British Insurance at £4 7s 6d and £4 7s, which hag been the market value since the beginning of the month, when the price was £4 13s. The chief interest in this section was the sale of two lots of Mortgage Corporation at 5s sd, a continuation of the fall that has been apparent for a month. A sale later in the week at a penny higher indicated a more hopeful view of prospects. Dalgetys, which have been sagging lately, had a number of dealings through the week, and finished at £8 2s 3d, an advance of Is 3d on the price at the beginning of the week. After rising last week, New Zealand Refrigerating 10s shares settled down at lis, at which several sales were made. The £1 shares had business at £1 2s and £1 2s 6d, a slight advance on the market's recent idea of their value. The interest in New Zealand Breweries, noticed so strongly last week, was kept up, and sales were made at prices ranging around £2 17s Sd. Staples at £1 12s 3d and £1 12s 5d were dearer than recently. Broken Hills and Broken Hill rights both continued the active market they have had for some time, and both, under the influence of the approaching dividend distribution, firmed on the week's trading. The rights finished at £1 Is Id and the others at £2 15s 4d. G. J. Coles also had an active inquiry, the price at about £3 5s 3d being higher than it has been for a month. Dunlop Rubber have gained a full shilling in the month, the period having seen the announcement of the future of the company. The price thie

week ranged from 15s 9d to 16s 3d, the higher figure being paid toward the end. Mining has been very quiet. Following the announcement of a 10 per cent, distribution, Maori Gully were stronger at up to Is 4d, an improvement of 3d over last week. Mount Lyell and Mount Morgan held recent rates. Argo Gold were a little erratic, but mainly held their price of Is 3d established last week. Emperor were 6d cheaper at £1 2s 6d in the unlisted section. There was fair activity in Woolworths (Sydney), but the price, after hardening at the beginning of the week to £5 12s 6d, sagged a shilling. A sale of Tiproff Patent Seal £1 paid was mide at £2 7s. CANTERBURY MARKETS (Pek United Press Association) CHRISTCHURCH, November 1. Apart from an interest in fowl wheat there is very little business in the Christchurch grain and produce markets. Potatoes appear to have finished for the year, the North Island having taken no interest at all in the local market since the price first began to sag from the recent high rates. There has been a very small amount of business with local retailers, who have found the new season's supplies held up by rain: but generally these lots have been exceedingly small and the price has been as low as the equivalent of £5 15a a ton on trucks. There is actually no market for farmers at present, and it looks as though there will be none till the new crop. New potatoes have already been dealt in to some extent, the price being equivalent to £3 10s on trucks or thereabouts. Pukekohe, new crop, were quoted this week at £l7 10s a ton, on trucks Pukekohe, a decline of £7 in 10 days and an indication that the northern crop is beginning to come in more heavily. Free fowl wheat is very scarce indeed or is very firmly held, and the price has risen to 4s 6d. Sales are reDorted to have been made as high as 4s Bd. The board's price remains at 4s 4d for South Island delivery, but deliveries by the board to merchants are being made from wheat stored for some time, and merchants are not keen to acquire it. ■ The board has adopted a policy of de- ! livering milling grade to consumers only, to prevent holding by speculators. In October, deliveries to the board amounted to 83.000 bushels, about "half of which quantity has been absorbed by millers with warrants to fill. The rest has been made available for feed. The small seed trade has shown a slight awakening after the rain, and fair business is being done with the country in retail lots. BANK OF NEW ZEALAND DIVIDENDS ANNOUNCED. (Per United Press Association) WELLINGTON, November 1. The Bank of New Zealand has declared dividends of Is a share on ordinary shares and 3| per cent, on D long-term mortgage. SITE FOR PAPER MILL LARGE WHAKATANE WORKS. Steady progress is being made with the formation of the railway track for the Whakatane Paper Mills Company. The contractors have now completed over three miles of the line formation, which is ready for ballasting and construction work. Other large stretches are well in hand. The work is so far advanced that is is expected to start levelling the mill site to-day. This task involves the shifting of about 20,000 yards of spoil, which will occupy about three weeks. E.S. AND A. BANK (Per United I'ress Association) WELLINGTON, November 1. The E. S. and A. Bank has advised the Stock Exchange Association that a final dividend of 2h per cent, will be payable on November 28. The transfer books Mill be closed from November 18 to 27.

AUSTRALIAN STOCK EXCHANGES (United Press Association) (By Electric Telegraph—Copyright) SYDNEY, November 1. (Received Nov. 1, at 10.15 p.m.) Trading on the Stock Exchange to-day disclosed a distinctly strong tone. Industrials made a firm showing, the turnover being well above normal. ADDITIONAL SALES.

LONDON METAL MARKET fUnlted Press Association.) (By Electric Telegraph—Copyright) LONDON, Octoher 31. (Received Not. 1. at 11 p.m.) The following are the official metal quotations:—

A SECOND "LLOYD'S" The Financial Times understands that the attention of Lloyd's has been drawn to an American underwriting firm which has recently been soliciting business in Great Britain. It is understood that the terms offered are most competitive. Circulars have been issued by the firm bearing the heading " Underwriters at Lloyd's. London." Only when the type is carefully studied does it appear that the London referred to is London, Ohio, and not London, England. The committee of Lloyd's has sent to New York for further information.

UNION OIL. SOAP, AND CANDLE COMPANY (Pee United Press Association) AUCKLAND, November 1. The directors of the Union Oil, Soap, and Candle Company, Ltd., Auckland, recommend a final dividend of 9d a share, making Is 3d for the year, an unchanged rate. NORTH BROKEN HILL (Per United Press Association) WELLINGTON, November 1. The North Broken Hill Company has declared a dividend of 2s 6d per share, together with a bonus of Is per share, payable at Melbourne on December 12. The transfer books will be closed on November 8. MOTOR INDUSTRY The aggregate world output of cars and commercial vehicles in July, 1935, is shown as 434,000 in the September Bulletin of the International Tin Research and Development Council, compared with 358,000 in July, 1934. During the year ended July, 1935, in which 4,457,000 vehicles were produced, the world's motor industry increased its output by 23.6 per cent., compared with the previous year.

Last w eefc. This we ek \ ' ■' ' £ 8. d. £ 8. d Consols J Loan. 4 p.c. 1969-90 84 10 115 0 0 0 83 10 115 0 0 0 Fundln Assented War Loan .. .. 105 10 0 104 0 0 Conversion Loan. s x A pie. ■ - 105 0 0 105 0 0 Victory Bonds, 4 p.c. (ex dlv.) 113 10 0 113 10 0 C'wealth 5 P.c.. 1945-75 .. 109 5 0 110 15 0 C'wealth. 3% P.c. 1036-37 .. 102 10 0 103 1 3 C'wealth. 4 p.c. 1943-48 .. 101 10 0 100 17 6 C'wealth. 3% P.O.. 1948-53 .. 101 15 0 102 3 9 C'wealtl 1. 314 P.O.. 1950-61 .. 3% P.C. 1930-50 .. 96 10 90, 5 0 0 96 18 100 7 9 6 N.S.W. N.S.W. Vh P.C. 1935-45 .. 101 7 6 101 13 8 N.S.W. 5 p.c. 1935-55 .. 100 13 9 100 15 0 Victoria, 3 p.c. 1929-49 .. 96 17 6 97 3 9 Victoria . 4% p.c. ,1040-60 .. . 5 p.c, 1945-75 .. 105 0 109 0 0 0 105 10 109 0 0 0 Victoria Queen si and. 3 p.c. 1922-47 .. 96 17 6 97 7 0 Queen El and. 5 p.c. 1940;C0 .. 105 5 8G 10 0 0 105 8 86 17 9 a S.A.. : p.c. 1916 (opt.) .. S.A.. { p.c. 1945-75 .-. .. 109 0 0 110 6 3 W.A.. 4 p.a. 1942-62 .... 102 5 0 102 15 0 Tasman ia. 3'i D.C.; 1920-40 .. 102 5 102 7 0 6 102 2 103 2 0 0 Tas man la. 4 P.O. 1840-50 .. New Ze alana. iM u.c. 1948-55 107 15 0 108 11 3 New Z ;»lana. 3% P.c 1940 102 17 G 103 0 3 New Si aland. 3 [i.e. 1945 .. 100 ii 103 7 0 c 100 15 103 12 0 6 Nev ; ii aland. 6 P.C.". 1930 51

£ e. d. Commercial Bank of Sydney 18 0 0 Bank of Australasia 11 7 6 Commercial Bank of Australia 0 16 10J Australian General Insurance 44 5 0 0 17 0 1 4 10J 7 15 6 1 19 7J Tooths .. .. 2 18 4J 4 6 6 0 16 9 Winchcombe, Carson .. .. 1 9 101 Morris Hedstrom .. .. 13 9 1 13 6 2 11 6 1 1 9 Perpetual Trustees 4 15 0 Woolworths (first pref.) 2 0 0 2 0 3 Anthony Hordern .. 0 19 3 Broken Hill Proprietary .. 1 17 6 2 15 9 North Broken Hill .. .. 8 2 6 South Broken Hill .. .. 5 0 6 0 14 5 0 18 3 Mount Paris Tin 0 3 8 2 3 6 Commonwealth Bonds— 4 p.c, 1938 102 15 0 4 p.c, 1941 103 15 0 104 10 0 4 p.c, 1953 104 0 0 104 12 6 4 p.c, 1957 104 12 6 4 p.c, 1959 103 0 0 4 p.c, 1961 103 7 6 MELBOUKNE, November 1. Commercial Bank of Australia 0 16 9 E.S. and A. Bank 5 5 0 G. J. Coles 3 5 3 0 18 9 0 19 9 2 3 10£ 3 17 6 1 4 0 i ...

Copper, spot .. .. Tod £35 0 0 Rise £0 3 1% Copper, forward .. .. 35 0 10% 35 5 0 Rise 0 2 Fall i S 6 0 Electrolytic, spot .. .. Electrolytic, forward .. 39 15 0 Else 0 5 0 39 15 0 No change 17 7 6 No change Lead, forward .. ., 17 7 6 No change Spelter, spot .. .. 16 r C Kiss 0 2 6 Spelter, forward .. 10 7 G Rise 0 2 6 223 10 0 Rise 5 12 6 Tin. forward .. .. 212 15 0 Fall 5 12 6 Pig Iron, home trade S 7 6 No change Pig Iron, export 3 2 6 No change Antimony, British S3 10 0 No change Antimony, foreign 59 0 Unit 0 No change 1 14 6 No change Silver, standard .. .. 1 16 Oz. 29 5-if 0 d No change No change 31%d No cbangc