COMMERCE AND FINANCE

Otago Daily Times, Issue 22832, 17 March 1936, Page 7

COMMERCE AND FINANCE

LOCAL AND OVERSEAS MARKETS

THE SHARE MARKET DUNEDIN STOCK EXCHANGE Bank of New Zealands were disposed of at the easier price of £2 3s 6d on the Dunedin Stock Exchange yesterday, the final buying offey being £2 3s, while sellers asked £2 3s 9d. Bank of Australasias were inquired for at £l2 ss. cum dividend, but sellers did not come forward. 'There was a seller of Reserve Banks at £5 17s, but there were no immediate buyers. National Mortgage A shares were in easier demand at £2 10s, but sellers were not interested. Colonial Sugars were on offer at £43 5s without buyers coming forward. Crystal Ices firmed again, the closing buying offer being £1 19s, but sellers were reticent. Dunlop Rubbers were in stronger demand at 13s 3d, sellers’ lowest requirement being 14s. New Zealand Breweries continued to be erratic, a seller quoting these shares at £2 13s. No buyers came forward. There was a weaker inquiry for ordinary Electrolytic Zincs at £1 15s 6d, cum dividend, and the market for Mount Lyells also eased to £1 2s. SALES ON ’CHANGE.

NORTHERN EXCHANGES AUCKLAND Sales on ’Change

AUSTRALIAN STOCK EXCHANGES (United Press Association) (By Electric Telegraph-Copyright) SYDNEY, March 16. (Received March 16, at 11 p.m.) The downward trend in prices continued on the Stock Exchange to-day and business was somewhat restricted. THE MORNING SALES.

AUSTRALIAN INTEREST RATES RECENT TREND HIGHER. INFLUENCE ON TRADING BANKS. Financial circles in Australia arc wondering whether the end of the period of cheap money is in sight, in view of the action of the Commonwealth Bank in offering to the public £1,000,000 of Treasury bills at 12 per cent., and the resultant announcement of the Bank of New South Wales, followed by the Bank of Adelaide, that interest rates on fixed deposits had been advanced by J per cent. Other banks may have to come into line, ns they arc likely to lose deposits, while it is usual for bank overdraft rates to move in sympathy with deposit rates. The purchase of Treasury bills, which arc to be made available on March 16 on a three months’ currency at a discount of 12 per cent, per annum, will give a return at the rate of £1 15s 7d per annum. This compares with a return at the rate of £1 10s per annum on a fixed deposit for three months with the trading banks, anil of £1 per cent, per annum on a fixed deposit with the Commonwealth Bank for a like period. Tin; new rates for deposits fixed by the Bank of New South Wales compare with other deposit rates as follows: Three Six 12 24

Discussing the position of bank interest rates, Sir Claude Reading, chairman of directors of the Commonwealth Bank, said that the propriety of any increase or decrease in interest rates was a mattei of individual opinion and action by any financial institution, and must be influenced largely by the particular policy which that institution desired to adopt. It was a matter which was usually based on the price of, and demand for, money, which in turn was based on the economic conditions from time to time. “During a depression money is, ana should be, cheap on account of lack of demand, but, ns recovery proceeds, it i« a natural movement for interest rates to rise." said Sir Claude. “Greater industrial activity, together with large Government expenditure on loan works, must have their influence on rates generally. When a financial institution such as a bank feels that its rates are not in accord with market conditions, then it becomes a question whether higher or lower rates should be offered for deposits, and as a natural corollary higher or lower rates charged for lending."

DOMINION WOOL SALES ALTERATIONS TO ROSTER (Per United Press Association) WELLINGTON, March 10. The New Zealand Woolbrokers’ Association announces the following alteration in the roster of wool sales; — Christchurch. —March 30 at 7 p.m. instead of March 31. Dunedin.—-April 2 at 7 p.m. instead of April 3. Wellington—April 6 at 1.30 p.m. instead of April 8. . . Napier—April Bat 7 p.m. This is an extra sale. PROPERTY SALE Messrs Park, Reynolds, Ltd., report having sold by auction yesterday the freehold property at the corner of King and St. Andrew streets, with frontages of 30 feet and 66 feet, being part of section 21, block XXI. Dunedin, with buildings thereon.

NON-FERROUS METALS MARKET

The average price of non-ferrous metals during 1935 was higher than during any of the previous three years, and the view has been expressed that the crisis through which these metals have passed in recent years has now been overcome. All non-ferrous metal industries have been unsettled during the last 13 years. Potential production was largely increased during the war, and has expanded further since then. To-day the world potential output of the six most important nonferrous metals—copper, lead, spelter, tin, nickel, and aluminium —is more than twice that of 1913. Consumption has risen enormously, but not rapidly enough to keep pace with the increase in potential output. The result has been a number of efforts to force up prices, but, in spite of curtailment of production, surplus stocks mounted, and prices fell to the lowest levels on record. Exceptions were provided by the nickel and aluminium producing industries, and, according to the Manchester Guardian Commercial, their comparative steadiness was due to a policy of maintaining stable and fair prices. The outstanding event of the metal year, 1935, the journal states, was that the copper, lead, and tin industries adopted a policy which could, to some extent, La compared with that of the nickel and aluminium producers. The copper scheme adopted on June 1, 1935, has as its only objective an increase in consumption. It embraces many outside interests, and will prevent producers from engineering an excessive price level. The first favourable effects of this policy are already noticeable. Speculators have been disappointed, consumers’ confidence is rising, and consumption shows an expanding trend. The year, according to the same review, also saw a change in tin policy. Within a period of six months quotas were increased from 45 to 90 per cent, of the standard tonnages, the 90 per cent, quota for the first quarter of 1936 comparing with 40 per cent, for the first quarter of 1935. Moreover, the buffer pool scheme, which expired at the end of 1935, has not been renewed, because free stocks will be brought back to a normal level by the new policy. For three'years the lead market lias been depressed, but no attempt at an artificial increase in prices was made, with the result that production and consumption found, very slowly, but also very surely, a new equilibrium. Producers left the market to itself when prices rose rapidly early in 1935, the only arrangement made being one “ not to increase production without due notice.” Spelter still Jacks a strong lend on the basis of a far-sighted international scheme, but here, also, prospects for the re-estab-lishment of tlie former successful international zinc cartel have improved

f S. d. Bank of New Zealand .. 2 3 6 SALES REPORTED. Kaiapoi Woollen (ord.: late Saturday) 0 14 6 The following are yesterday afternoon’s buying and selling quotations, which are subject to the usual brokerase: — BANKING. Buyer. Seller. £ s. d. £ 9. d. A’asia f+12 5 0 — N.S.W 34 0 0 34 15 0 N.Z 2 3 0 2 3 9 Commercial .. — 1 0 5 E.S. and A. .. 6 0 0 6 5 0 Natl, of N.Z. .. — 3 17 0 Reserve .... — 5 17 0 Union 9 6 0 — INSURANCE. National .. .. 0 18 0 0 19 0 New Zealand .. 3 0 .0 — Standard .. .. 3 2 0 3 3 0 SHIPPING. Huddart, Parker ■ (pref.) .... — 1 9 0 MEAT PRESERVING N.Z. Refrig. (cont.) .... — 0 9 11 South. Froz. Meat (paid) .... — 3 18 6 Waitaki Farmers 3 14 0 — LOAN AND AGENCY. Mortgage Corpora7 tion .. .. 0 4 4 0 4 Natl. Mortgage .. 2 10 0 — Wright. Stephenson (ord.) .... — 1 0 0 Wright, Stephenson 1 0 (pref.) .. .. — 3 COAL. Kaitangata .. 12 0 1 2 9 Westport .... — 1 2 0 Westoort-Stockton (ord.) .... — 0 1 6 W estport-Stockton (pref.) .... — 0 2 6 WOOLLEN COMPANIES. Bruce (ord.) .. 0 12 0 0 14 0 Bruce (pref.) .. — 1 4 0 MISCELLANEOUS. Broken Hill Propy. 2 17 0 — Broken Hill Propy. (10a paid) .. — 1 15 6 Colonial Sugar .. — 43 5 0 Crystal Ice .. 1 19 0 — Dominion Fertiliser 1 6 0 — Dun.-Kaikorai Trams .. .. 2 0 0 —- Dunlop. Perd. Rubner .. .. 0 13 3 0 14 0 Milburn Lime .. — 2 4 0 Natl. Electric .. — 0 12 9 N.Z. Paper Mills - 1 9 9 Regent Theatre .. — 1 1 0 G. J, Coles .. 3 9 0 — BREWERIES. N.Z. Breweries .. — 2 13 0 Dunedin .... — 1 10 0 Timaru (7 a 6d pd.) 0 12 0 — AUSTRALIAN MINING. Electro. Zinc (ord.) .. .. tfl 15 6 — Mount Lycll .. 1 2 0 — Mount Morgan .. — 0 16 1 Mount Morgan 6 Develop — 0 ,4 North Broken Mill — f f 7 18 0 MINING. Big River .. .. — 0 2 0 Gillespie’s Beach 0 0 111 0 i 2 Goldfields Dredging .. .. 0 0 3 0 0 5 King Solomon .. — 0 3 5 Lawson’s Flat .. — 0 0 5 Okarito .. .. 0 4 0 — Oxenbridge .. .. — 0 0 3 Skippers .... — 0 0 3 Waipapa Beach — 0 1 6 Waitahu .... — 0 2 2 GOVERNMENT LOANS. 3 \ p.c. Stock. Nov., 1938-52 .. .. 102 15 0 — 31 p.c. Stock, Mar., 1939-43 .. . .*100 15 0 — 3J p.c. Stock, Sep., 1939-43 .. ..*100 15 0 — 3 h p.c. Stock, May, 1939-52 .. .. 102 15 0 — 4 p.c. Bonds, 193740 102 0 0 — 4 n.c. Stock, 193740 102 0 0 — 4 p.c. Bonds, 194346 102 10 0 — 4 p.c. Stock, 194346 .... ..10210 0 — 4 p.c. Stock, 10460 0 io 104 *Ex interest, if Cum dividend UNLISTfel) STOCKS. Buyer. Seller. £ s. d. £ s. d. Mackintosh Caley 0 11 6 Phcenix .... — National Tobacco 3 6 0 — Woolworths (Syd16 6 ney) .... — 6

DIVIDENDS PAYABLE. Tim following is a list of shares on which dividends will shortly be payable:— Electrolytic Eine —8 per cent., 9 3-5d per share, half-yearly Mar. 19 Gillespie’s Beach — 3-5d per share Mar. 19 Hnddart, Parker (ord.) —7 per cent., 8 2-5d per share, halfyearly Mar. 21 Huddart, Parker Cpref.)—0 per cent., 7 l-5d per share, halfyearly Mar. 21 Mataki —Id per share .. . • • Mar. 27 Bank of A’asia—72 per cent., 3s 4d per share, half-yearly .. Mar. 27 North Broken Hill —3s 6d per share Mar. 27 Hnrnc Pipe—5 per cent., 6d per share, half-vearly .. .. Mar. 30 British Tobacco —7 per cent., 4 l-5d per share, quarterly Mar. 31 N.Z. Drue — 8 per cent., Is 9 3-od per share, final .. Apl. 3 Woolworths —17| p.c., 2s 3 3-5d per share, final —

£ a. d. Stock. 15/1/40, 4 p.c Hamilton, 1/7/40, 4i p.c. .. 101 17 6 102 10 0 Newmarket, 1/6/39 102 10 0 Bank of New South Wales .. 34 5 0 Bank of New Zealand ,. 2 3 3 Bank of New Zealand (D 8 mort) 1 3 North Auckland Farmers 0 3 0 Kaiapoi Woollen 0 14 7 Electrolytic Zinc (pref.) 2 1 0 Farmers’ Trading 0 8 5 Macky Logan 0 18 6 Golden Crown .. .. •. • • 0 8 6 Mataki 0 1 10 Nevis Diesel 0 0 U Unlisted Stocks Woolworths (Sydney) .. ,. 6 15 6 14 6 6 WELLINGTON Sales on ’Change Bonds, 4 p.c., 1937-40 (late 102 Saturday) 0 0 Commercial Bank of Australia (2) 1 0 3 Bank of New Zealand .. .. 2 3 6 Dominion Breweries .. .. 1 1 6 Unlisted Stock* Woolworths 6 15 6

Commonwealth Bonds — H p.c., 1948 £ B. 97 0 d. 0 4 n.c., 1938 101 10 0 4 n.c.. 1059 , , 100 10 0 Bank of New South Wales 35 10 0 New Zealand Insurance 3 1 0 Anthony Hordern .. • 0 19 6 Dunlopa 0 14 1 Howard Smith 0 16 6 ADDITIONAL SALES. £ a. Commercial Bank of Sydney 21 12 d. 0 Commercial Bank of Australia 1 0 6 New Zealand Insurance 3 1 0 Associated News .. . • 1 2 3 British Tobacco 2 0 0 Tooheys • • 1 11 6 Carlton Brewery .. .. 2 12 0 Drug Houses 1 7 74 0 Australian Glass .. . • 4 2 Dunlop Pcrdriau .. . • 0 14 2 Goidsbrough. Mort 1 11 6 Greater J. D. Williams 0 7 9 Henry Jone» 1 19 3 Millaquin Sugar .. .. 1 17 6 Electrolytic Zinc .. .. 1 17 6 General Industries 1 I 0 ark Foy 1 3 9 Meggitts Goodyear (pref.) .. ... 1 4 1 10 0 3 Wests 0 11 0 Sargents 1 4 3 Pitt, Son, and Badgery 1 4 3 United Provisions .. .. 1 13 G Cash Orders 1 7 9 Broken Hill Prourictary *Z 18 6 South Broken Hill (ex div.) 5 0 0 Koroere 0 4 6 6 9 Emperor .. Kampong Lanjut .. • • Peninsula Tin 1. , 0 11 1 1 1 3 0 Mount Paris 0 3 8 MELBOURNE. March 16. National Bank (£5 paid) 7 13 0 Commercial Bank of Australia 1 0 6 Electrolytic Zinc, .. .. 1 17 0 Australian Glass .. .. 4 2 0 G. J. Coles 3 9 3 Herald and Times .. .. 3 1 6 Nestles (pref.) .. .. 1 14 6 Mount Lyell 1 2 71 Loloma 0 17 4 Emperor 0 11 4

Com. Hank .. . IUOH. p.c. . 1 UlOS. p.c. U mos p.e. *4 in OB. p.e. 2J Bank N.S.W. . . 2 21, 23 3 Other banks . , U ■2 21 2 J Treasury bills . . 13 — — —