COMMERCE AND FINANCE

Otago Daily Times, Issue 23330, 23 October 1937, Page 11

COMMERCE AND FINANCE

CANTERBURY MARKETS A DULL WIIEK iPm United Press Association) CHRISTCHURCH, Oct. 22. The week has produced no change in the grain and produce markets, which remain extremely dull with little trade in any line. The slackness is quite unseasonable, and merchants are unable to account for it satisfactorily. Potatoes have firmed in Auckland on reports that dry weather has hindered the harvest of the Pukekohe crop, but the rise is not apparent here. Farmers who have potatoes left ilnd"it difficult to get rid of them, as merchants will buy only when they have orders in hand. Consignment business appears to be keeping Auckland fully supplied. Dry weather is general throughout the North Island, and this, if it continues, may stimulate a good demand for Canterbury small seeds. In the meantime the trade is dull, but there are signs of a renewal of interest among northern buyers. The inquiry for chaff appears to have slackened off a little, DUt there is still a good trade at firm prices. The oats market is extremely quiet. AUSTRALIAN STOCK EXCHANGES (United Press Association) (By Electric Telegraph—Copyright) SYDNEY, Oct. 22. (Received Oot. 23, at 0.15 am.) Returning confidence on the New York share market, combined with optimism for a Government victory at the Federal polls to-morrow, caused the local sharemarket to-day to be in its most buoyant mood The volume of business was on a generally flrmeV basis, and was the largest for some time. THE MORNING SALES

3d per share was declared in Melbourne to-day. • MELBOURNE, Oct. 22. The market generally improved, but was inclined to quieten on with the

BANK OF ENGLAND RETURN (United Press Association) (By Electric Telegraph—Copyright) LONDON, Oct. 21. The following is the Bank of England return:ISSUE DEPARTMENT Note issue in circulation £484,300,000 v Bank department .. .. 42,100,000 Government securities .. 188,400,000 Other securities .. .. 600,000 Silver coin BANKING DEPARTMENT Rest 3,100,000 Public deposits .. .. 29,800,000 Bankers' deposits .. .. 89,300,000 Other amounts 36,300,000 Government securities .. 99,600,000 Discounts and advances 6,400,000 Other securities .. .. 23,300,000 Notes and coin 43,700,000 Ratio of reserve to liabilities is 28.13 per cent. The Bank of England discount rate remains unchanged at 2 per cent. BYCROFT, LIMITED (Per United Press Association) AUCKLAND, Oct. 22. The directors of Bycroft, Limited, have declared an unchanged interim dividend of 4 per cent. AUSTRALIAN BUSINESS CONDITIONS Business generally appears to have reached a somewhat static condition (the National Bank of Australasia says in its latest monthly summary). This does not imply an absence of progress, but" the forward movement of the last few years appears to have slowed down considerably, and, though important industrial developments are still proceeding, the high level of general prosperity and the relatively small number of capable workers seek.. Ing employment make it virtually impossible to continue the rapid allround advance of the last few years The disturbed and uncertain international position has, no doubt, had some adverse effect on business sentiment in Australia, and delay in obtaining new plant from overseas is retarding the equipment of some industrial enterprises. Against this, a number of large-scale manufacturing plants are being constructed, including new works and extensions to existing factories by well-known overseas corporations. Investors are influenced also by the near approach of the Federal elections, which, as usual, have some easing effect on investment. Another feature is the downward movement in prices of a variety of commodities, which, though checked for some items, is sufficient to raise doubts or set up hesritancies. More serious are the rainfall shortages of the past month recorded for many important pastoral and agricultural districts. Following, as they do, relatively dry autumn and winter seasons, with a consequent deficiency of subsoil moisture, the light rains of September make It highly important that good rains should be received by the middle of October. Otherwise late-sown wheat crops and annual grasses will receive a severe check, with adverse effects, on the wheat yield and on pastoral production, though most of the. early-sown wheat crops could cany through without serious damage to the end of October.

LOCAL AND OVERSEAS MARKETS

CHRISTCHURCH STOCK EXCHANGE WORST PERIOD FOR YEARS (Per United Press Association) ' CHRISTCHURCH, Oct. 22. Although there was a slight rise in the turnover, the Christchurch Stock Exchange this week had one of the worst periods for many years, trading being extremely restricted and prices, specially for base metals stocks, fluctuating widely. Investors snowed little interest in anything but a few of the leading Australian industrial and mining stocks, and, in view-of the exceptionally depressing overseas news, kept off the market as far as possible. The bad break in the middle of the week was at once reflected here, but it is a clear derrtonstration of the underlying soundness of the investment position that, immediately there was better news from America and England, the market responded. New Zealand stocks are having a particularly dull time, and very few transactions indeed were made in Dominion issues apart from miscellaneous industrials and leading mining issues. Breweries and banks were practically the only sections given any attention, and there appeared to be neither buyers nor sellers in the market for the majority of stocks. Government issues remained very firm. With very many more buyers than sellers offering, their continued firmness is due not only to the natural appreciation of gilt-edged securities at a time when ordinary equities are fluctuating, but' also to the large amount of money in the hands of trustees and others with no other attractive outlet. A great deal of trust money is held at present waiting investment opportunity. In the banking section 10s Commercial of Australia were fairly busy. They started round 17s 3d, fell to 17s at the mid-week, and then picked up to around the same price that they opened. There was a sale of preference at £9 10s. New South Wales had one transaction at £33, an improvement of 17s 6d on the last sale. New Zealands at £2 2s were cheaper, and Unions at £9 7s 6d were also back.

There was a consistent market for New Zealand Breweries, which rose Is to £2 9s at the mid-week, but later slipped to finish to-day with sales at £2 8s 7d and £2 8s 6d. One sale of Tooth's was made early in the period at an unchanged price of £2 14s 6d. British Tobacco moved in a way typical of most of the leading Australians. They rose 2d to sales at £2 8s 8d on Tuesday, but on Thursday were done at £2 7s 3d, rising again to-day to £2 Bs. Broken Hills ex rights, appreciated sharply to-day to sales at £3 7s. Rights rose 2s 6d to £1 12s 6d. G. J. Coles fluctuated widely, but were firmer to-day. Colonial Sugar had sales at £46 10s and £46 7s 6d, a loss of about £2 on the price at the beginning of last month. Both Electrolytic Zinc issues fluctuated considerably, dropping steeply at the mid-week, but later picking up well. Hume Pipes remained steady at £l, and Taranaki Oils had some business at the steady price of 7s Id. Activity among mines was confined almost to Mount Lyell, Mount Morgan, and Broken Hill North and South. All fluctuated in sympathy with movements of the metal markets overseas and with prices in Australia. There was a good recovery at the end of the week to levels about equal to, or a little better than, those at the close of last week. Grey Rivers touched 8s in sales. MINING NEWS TALISMAN DUBBO REPORT A total of 40 tons of ore was treated at the Golden Dawn battery of fhe Talisman Dubbo mine for an approximate realisation of £464. MAORI GULLY RETURN (Per United Press Association) GREYMOUTH, Oct. 22. The Maori Gully dredge obtained a return of 420 z ldwt for 131 hours' work. ALLANTON STOCK SALE DONALD REID'S REPORT Donald Reid and Co., Ltd., report as follows regarding the October stock sale held at their Allanton yards on Tuesday:— Sheep.—An entry of 543 ewes and lambs, which met with a ready sale, realised from 16s to 18s 6d, all counted. Cattle.—The yarding in this section numbered 234 head, and included several lines of particularly well-bred steers and heifers. Quotations were:— Three and four-year-old bullocks to £8 2s, two and a-half to three-year-old bullocks from £6 15s to £7 7s, fat heifers to £9 15s, fat and forward cows and heifers £5 10s to £7 10s, two and three-year-old heifers £4 7s 6d to £5 17s, yearling steers to £5. yearling heifers £3 19s. Dairy Cows. —Thirty dairy cows were yarded, the demand being strong for cows of good condition and close to profit. Best sorts realised from £8 to £9 7s 6d, medium £5 12s 6d to £6 10s, and others from £3 10s to £4 10 s- « _, Horses.—Thirty horses were offered, and met with a steady inquiry at prices slightly lower than those ruling at earlier sales. The following prices were realised:—Gelding, five years, £4l; gelding, seven years, £4l: gelding, eight years, £39 10s; mare, eight years, £3B; mare, seven years, £35; mare, nine years, £34 10s; spring-cart gelding, six years, £26; hack gelding, £l6 10s. pony, six years, £ls.

Commonwealth Bonds— £ s. d. 100 17 6 4 B.C., 1950 102 12 6 Commercial Bank of Aus0 17 9 National Bank (£5 paid! 1 .. 7 6 0 Bank of New South Wales 33 15 0 Tooths 2 15 6 2 8 9 Broken Hill Proprietary .. 3 9 6 Colonial Sugar 47 10 0 Electrolytic Zinc .. Mount Lyell (N.Z. delivery) 2 13 9 1 19 6 ADDITIONAL SALES Bank of New South Wales 33 15 0 Commercial Bank of Sydney 21 18 0 Com. Bank of Aust. .. 0 17 7J 47 7 6 British Tobacco .. .. 2 9 0 2 15 3 1 11 6 3 5 3 4 13 6 Dunlop Perdriau .. .. 12 6 14 6 Felt and Textiles (ex rights) 1 16 3 1 15 0 Mark Foy 14 0 14 6 12 0 2 13 3 (pref.) 2 16 3 1 19 3 Mount Lyell (N.Z. delivury) 1 19 6 1 19 9 1 19 7i Broken Hill Proprietary .» 3 8 0 (ex rights) 1 11 104 North Broken Hill .. .. 3 0 0 5 12 6 0 19 3 0 10 11 Larut 0 17 3 0 12 8 A South Broken Hill dividend of Is

approach of the week-end. £ s. d. Com. Bank of Aust. ., 0 17 7 National Bank (£10 paid) 14 9 0 2 8 9 3 5 6 1 8 6 1 2 6 Australian Glass .. 4 12 0 Aust. Paper Manufacturers (pref.; fully paid) .. 1 4 3 (10s paid) 0 13 9 Felt and Textiles (ex rights) 1 16 0 Electrolytic Zinc .. 2 13 0 (pref.) 2 16 0 0 11 0 1 19 3 0 12 6 0 18 8