COMMERCE AND FINANCE

Otago Daily Times, Issue 23114, 13 February 1937, Page 11

COMMERCE AND FINANCE

CHRISTCHURCH STOCK EXCHANGE THE WEEK'S ACTIVITIES (Special to Daily Times) CHRISTCHURCH, Feb. 12. This week has been consistently busy on the Christchurch Stock Exchange, but values of almost every class of stock were erratic. In general, prices moved down till the end of the period, when there was renewed strength, which allowed many issues to pick up their loss. Values appear, in the meantime, to have become established within fairly narrow limits, and investors are beginning to look farther afield than the general run of the more popular investments. New Zealand issues have benefited to some extent. The turnover was £55,316, against £49,891 last week. No great interest- was displayed in Government issues, but there was a firmer tone about the market. Banks were erratic and generally weaker. Commercial of Australia (10s paid) were fairly steady till the end of the period, when there was a fractional fall. The £lO issue was steady, with a sale at £9 4s 6d. E.S. and A., which at the beginning of the period lost Is 6d to a gale at £6 3s 6d, picked up again, and were done to-day at £6 6s. New South Wales's were very slightly firmer. New Zealands, which last week showed a firmer tendency, weakened throughout the period, and were done to-day at £2, the lowest price since November. There was consistent demand for Unions, which rose 3s 6d to £lO 12s 6d. Insurance shares came in for more attention, but prices were inclined to weaken slightly. The wool situation, though it has by no means deteriorated, does not at present look as stimulating at it did immediately after the New Year, and. this was the underlying cause of the absence of attention to loans in general. Dalgety's have had quite a steep decline in the past fortnight. They had sales at £lO 19s and £lO 18s, but were weaker to-day. Goldsbrough, Morts were also weaker. Fair attention was paid to meat shares, which remained about steady in trading, though there were slight fluctuations. Kauri Timber were strong throughout the week. Both New Zealand and Australian Breweries were given considerable attention at prices which showed little alteration from those of last week. The most interesting development in the miscellaneous section was the brisk activity in G. J. Coles. Both here and in Australia the price rose steadily and sales were made to-day at £5 6s, an advance of 6s 6d on the week. Anthony Horderns were slightly firmer, but were erratic and Australian Glass were back at the end of the week. British Tobacco rose sharply over the week-end and continued to move up slightly, gaining Is Id on the week. Both Broken Hill issues moved about but remained at approximately last week's value. There was a steady business in Colonial Sugar, which remained firm at £42 15s, a loss of 5s on last week's price. Consolidated Brick .rose during the week but are still cheaper than they were a fortnight ago. Dunlop Rubber remained steady at last week's price, but both Electrolytic Zincs, after gaining ground early, lost it again. There was some interest in Taranaki Oils, which rose from Is lid to 2s lOd. All the Woolworths issues were inclined to be cheaper. Trading _was brisk throughout the week in Mount Lyells, which rose steadily to gain nearly Is. Mount Morgans, after a sharp dip at mid-week, rose again toward the end and finished firm. CANTERBURY MARKETS (Per United Press Association) CHRISTCHURCH, Feb. 12. The market for wheat is very quiet indeed, and looks like remaining in this condition until there is some an- . nouncement of the intentions of the Government. Buyers are proceeding with the greatest caution, and are buying only immediate requirements from day to day. The price remains unaltered. Deliveries of milling wheat from the new crop are being made with the increasing weight, and the provision of enough trucks has become something of a problem. In general, the sample is excellent, though wheat that is more out of condition than usual has made its appearance. Yields have turned out disappointing Oats are coming in heavily, and deliveries have eased the market. The quality of the crop/this year is better than it has been for some time, and, as the season was ideal for growing oats, yields are reported to be heavy. The small seeds trade remains quiet in the meantime. Onions are weaker, tho quotation now being about £8 on trucks with very few inquiries. The main crop has not yet begun to make its appearance. Potatoes are weaker, and the small amount of forward business being done is on a basis of £3 on trucks,.a figure which some growers are prepared to accept. PRODUCE IN LONDON The Department of Agriculture has received the following cablegram, dated February 6, from the High Commissioner for New Zealand, London:— Tallow: Poor demand at auction; 807 casks offered, of which 147 sold. Present spot quotations are:—Mutton: Fine, 3ls to 31s 6d per cwt; fair to good 27s 6d to 29s 6d; dark to dull, 25s 6d to 26s 6d. Beef: Sweet and/or mixed, 30s to 31s; fair to good, 27s 6d to 295; dark to dull, 24s to 265. Mixed: Fair to good, 27s 6d to 295; dark to dull, 24s to 265. Gut, etc., 24s to 265. Hemp: Manila Market weaker; buyers holding back on account of closing values. "K" grade for Feb-ruary-April shipments sold £33. Sisal . —Market quiet; March-May shipments sold down to £27 15s. New ZealandNothing to report. Apples: Trade slow except for good classes in boxes. Californian Newtowns, 10s 6d to lis; British Columbian Newtowns, 10s 6d to 12s; Jonathans, lis to lis 6d; Delicious, 10s to lis 6d. Pears: Demand is good. Californian Winter Nelis, 14s to 16s 6d.

LOCAL AND OVERSEAS MARKETS

MINING NEWS TALISMAN DUBBO GOLD MINES PROPOSED ISSUE OF SHARES CAPITAL FOR TREATMENT PLANT (Special to Daily Times) AUCKLAND, Feb. 12. To provide capital for the erection of a treatment plant the directors of the Talisman Dubbo Gold Mines, Ltd. (Karangahake) propose to issue 20,000 shares of 5s each at a premium of 2s 6d. According to a circular issued to shareholders shares are offered in the first instance to shareholders in the proportion of one share for every two held The present issued capital of the company is £9588 in 38,353 shares of 5s each, and with the proposed issue of 20,000 reserved shares the total subscribed capital will be £14,588. WEST COAST DREDGES (Per United Press Association) GREYMOUTH, Feb. 12. The Maori Gully dredge return was 340 z 13dwt for 130 hours' dredging. The Nemona return totalled 240 z for two days' wash-up in new ground. KING SOLOMON RETURN (Per United Press Association) INVERCARGILL, Feb. 12. The King Solomon return v/as 370 z sdwt for the week ended to-day AUSTRALIAN STOCK EXCHANGES (United Press Association) (By Electric Telegraph—Copyright) SYDNEY. Feb. 12. (Received Feb. 12, at 10 p.m.) On the Stock Exchange the feature of to-day's business was a strong inciuiry for and a sharp advance of G. J. Coles shares. Mount Lyell and Broken Hill shares were also considerably firmer. Tin was quiet, but steady. THE MORNING SALES £ s. d.

THE COPRA MARKET BETTER FOR RECENT REACTION That copra is all the better for the recent shakeout is the opinion of London brokers, according to cabled reports received in Australia. Like most commodities the pace of the recent advance made it over severe. Vulnerable positions built up have consequently not escaped the effect of international uncertainties and other factors which have affected all commodities during the past fortnight. Though some speculators were undoubtedly caught, the opinion of sober traders is that the market will be all the better for a healthy reaction. It now presents a firmer appearance. While forecasts for the future must necessarily be affected by a number of extraneous political and economic factors, the present position of copra itself does not seem to warrant further reactions. The market can be best described as firmer with the prospect of a hardening tendency during the next two months.

DAIRY PRODUCE OUTPUT THE CONSUMPTION OF BUTTER AND CHEESE The continued expansion of milk production, which has meant a greater relative increase in the output of milk products, chiefly butter, is revealed in the report just issued by the Imperial Economic Committee. Since 1929 the cow population in most countries has been increasing, although in many there has been a decline in total cattle during this period. More important than cow numbers, however, has been the increased productivity per cow. Butter consumption has, with few exceptions, continued to rise, and in the United Kingdom the increase in the past six years has been equivalent to 7Jlb per head. The greatest increases have occurred in those countries where margarine consumption is a factor and have been partly at the expense of margarine, e.g., in the United Kingdom and Denmark, countries also in which the full effect of low prices was felt. The increasing consumption was checked in some countries in 1935. Butter consumption is particularly high in Empire countries, and greatest in New Zealand and the Irish Free State with over 401 b each per head per annum. Consumption in the United Kingdom is equivalent to about 251 b per head, in the United States to about 181 b, and in Germany and France to about 161 b and 121 b per head respectively. Cheese consumption also appears to have increased. Empire countries do not figure as large consumers of cheese; the United Kingdom comes at the top with a consumption equal to about 91b per head, or 2| times that of Australia or Canada. European countries show a larger consumption per head, equal to about 121 b to 131 b in Germany, 111 b in France, and about 181 b in Switzerland. World trade in butter continued to increase between 1929 and 1935, due largely to shipments from Empire countries. Exports from foreign countries, chiefly European, have declined. These exports had reached a peak in 1931, and the subsequent decune may be traced to low prices and increased tariffs and restrictions in importing countries. Reorganisation of, and assistance to, the dairy industry has, however, apparently reversed the downward trend in the case of some exporting countries in the past year or two. The United Kingdom is the world's chief butter importer, and its share of world trade has risen from less than two-thirds of the total in 1929 to over four-fifths in 1935. Actual imports into the United Kingdom increased by 50 per cent, in these seven years, and the quantity received from Empire countries more than doubled. Imports int. o .other countries have declined, chiefly as a result of restrictive measures. International trade in cheese declined "yabout 21 per cent, between 1929 £n * f^ s, and Preliminary figures suggest that the downward trend continued during 1936. Empire shipments were fairly well maintained from 1929 to 1934 but a reduction in 1935 brought last year's figure 11 per cent, below that of 1929 New Zealand is the chief exporting country. Although imports of cheese into the United Kingdom declined between 1929 and 1935 the proportion of world exports taken by this country has grown to over half tt -t h !l T^ tal j Nearly 90 per cent, of United Kingdom imports are of Empire origin. Total world exports of eggs were reioobed b / ,!&? ut ,?? P er cent - between 1929 and 1935, although the declining tendency appears to have been checked in 1936. A drop of 20 per cent in imports into the United Kingdom between 1929 and 1935 was less severe man that of other importing, countries, an i Great Britain's share of world imports rose from under two-fifths of the total to nearly one-half during the period. Empire supplies, which account for about one-quarter of United Kingdom imports, had been fairly well maintained up to 1934, while foreign supplies were severely reduced, but a reversal of this trend occurred in 1935. The consumption of eggs per head ; s high m Canada, where it averages about 270 annually: the United States consume about 250 eggs per head yearly, the United Kingdom 150, and Germany nearer 100.

Dairy products resisted the depression rather longer than many other taT Ffl commodities, but prices declined until 1934, by which time they had fallen more than agricultural products in general. Between 1929 and 1934 New Zealand butter decreased in price bv 58 per cent., and Danish butter bv 46 per cent., while cheese was reduced on the average by about 50 per cent. A marked recovery took place in 1935, and for both butter and cheese the advance continued during 1936. The fall m egg prices was apparently less severe tno n in dair V products, while during '936 quotations were well above the 1935 average. GOOD WOOL CLEARANCES SEVEN MONTHS' SALES AND EXPORTS . The passings of wool at the January sales were negligible in'quantity. Of a total of 123,802 bales, offered, all but 166 bales were sold, according to returns compiled by Dalgety and Co., Ltd. For the seven months of the 1936-37 season to January 31. a total of 303,564 bales was offered, of which 301.222 bales, or 99.228 per cent., were sold, compared with 323,955 bales offered, and 307,575 bales sold during the corresponding period of last season. The figures in detail compare as follows: 7 mths. to Jan. 31.

Exports of wool during January were 117,355 bales of greasy, and 6165 bales of scoured and slipe, a total of 123,520. For the seven months' ended January 31 exports totalled 288,377 bales, compared with 302,568 bales for the corresponding period of last season. TRADE TREATIES THE BEST OF THE BARGAINS The British Chamber of Commerce has been inquiring into the trade agreements which Great Britain has negotiated with Denmark, Esthonia, Finland, and other northern and Scandinavian countries. The conclusion arrived at is that, although Britain has derived certain advantages from the agreements, the foreign countries still have the better of the bargain. The report points out that the agreements were made when the trade depression was acute, and that the United Kingdom's commercial policy, under a protective regime, has since developed perceptibly. In particular, the Chamber of Commerce Committee considers that the most-favoured-nation clause in commercial treaties should be accorded only to nations which are prepared to meet the reasonable requirements of Britain in the treatment of United Kingdom goods. So long as quotas and exchange restrictions are held to be necessary, it is contended the Gov ernment should insist that quotas for United Kingdom goods are adequate to Britain's legitimate claims. The committee is also of opinion that in all trade agreements special attention should be paid to the protection of the mercantile marine by using British buying power to restore equality of opportunity to British shipping. AIR SERVICE RISKS Life assurance policies on air service passengers will be discussed at the eleventh International Conference of Actuaries, to be held in Paris in June. Accident and flying risks will be considered in relation to professional flying men, private aeroplane owners, and passengers using regular air services. Variations in the rate of interest and the effect on the life insurance companies in relation to premiums will also be examined. Another important subject set down for discussion is a survey of tariffs for working compensation insurance. It is proposed to examine the effect of age on the probabilities of occupational accidents and on the cost of compensation.

Commonwealth Bond; ; — 4 p.c, 1938 .. 101 10 0 4 p.c, 1941 .. 101 15 0 4 p.c, 1955 .. 100 17 6 Commercial Bank oi ! Australia 0 19 41 British Tobacco .. 2 12 0 Eurns, Philp .. .. 3 17 6 Drug Houses .. 1 7 3 Electrolytic Zinc .. 2 15 3 G. J. Coles .. 5 5 0 Morris Hedstrom 1 10 3 Standard Cement 0 17 9 United Provisions 0 11 0 ADDITIONAL SALES £ 5. d. Commercial Banking of Sydney .. 1. 22 7 0 Union Bank 10 15 0 United Insurance 11 10 0 2 0 0 British Tobacco .. 2 12 0 2 17 0 Toohey's .. 1 17 4i 5 10 0 Winchcombe Carson 1 19 6 Morris Hedstrom 1 10 3 Millaquin Sugar Electrolytic Zinc 2 4 0 2 15 9 (pref.) 2 17 3 Anthony Hordern 1 1 ii Lustre i 1 3 3 Aust. Guarantee Corp. (pref.> .. 1 0 6 Permanent Trustee 1 0 3 Claude Neon 2 12 6 Peters 2 7 0 Kandos .. 1 4 10i Hackshalls .. 0 17 0 Gordon and Gotch 2 12 6 Meggitts .. 1 13 6 Stedman .. 0 17 9 Warburton Franki 1 3 0 Newbold Brick 1 17 6 Woolworth's (ord.) 8 13 6 Selfridges .. 2 1 0 Selfridges, N.Z. .. 0 5 9 Mount Morgan 0 17 14 Mt. Morgan (N.Z. delivery) 0 17 1* Mount- Lyell 2 4 9 Zinc Corporation 7 6 0 Kuala Kampar 1 3 0 Emperor .. 1 0 8 Lady Shenton 0 0 10 Taranaki Oil 0 2 7 MELBOURNE, Feb. 12. Long-dated bonds were easier and industrials steady. with Coles at a new record on a dividend prospect and rumours of capital benefits. Barriers were strong and Mount Lyells firm on the expectation of an increased dividend. £ s. d. Howard Smith 1 3 1 British Tobacco .. 2 12 3 Carlton Brewery •. 3 5 0 Coles .. • • ■ • 5 8 6 Australian Glass . • .. 0 14 0 Dunlop Perdriau . 0 19 3 General Motors .. 1 4 6 Electrolytic Zinc 2 15 6 (pref.) 2 17 6 Younghusbarids 2 1 9 Mount Morgan 0 17 0 Mount Lyell Broken Hill Propriel ;ary .. 2 4 4 1 9 9 North Broken Hill *. * • 3 19 0 South Broken Hill 2 9 0 Emperor 1 0 6 1 4 n

1936-37. 1935-36. Offered. Sold. Offered. Sold. Bales. Bales. Bales. Bales. Dunedin .. 32.864 32,628 33,014 31,190 Timaru .. 19,740 19,577 14,785 13,984 Christchurch 32,471 31,950 54,685 52,687 Blenheim 155 153 113 112 Wellington 65,531 64,615 67,683 61,857 Wanganui 33,771 33,704 37.099 36,440 Napier .. 60,601 60,476 58,868 56,868 Gisborne 3,89(5 3,887 1,920 1,752 Auckland 54,535 54,232 55,688 52,679 303.5G4 301,222 323,955 307,575