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Otago Daily Times, Issue 23687, 20 December 1938, Page 6

has never been attempted befpre in any country and which will' cost the country: approximately ,£20.000,000 per annum, when ; 'in full use. Whether in adverse times a small country like New Zealand, with a population of only 1,500,000 can stand such a drain on its resources must cause much anxiety to all thinking people within its boundaries and elsewhere. Commercial firms are already feeling the effect of rising costs and high taxation." Referring to conditions in New Zealand in another part of his speech. Mr Parker commented that there was practically no inquiry for land, and that very few sales had been reported. Of Australia, Mr Parker said: "Economic activity during the past year has continued at a high level, despite the international situation and the great reducton in the wool cheque, but of course some diminuV tion of prosperity must be looked for during the current year, owing to the natural sequence of a reduced spending power which is bound tb follow. Without being unduly pessimistic, I therefore do not think that the Commonwealth is in for such a prosperous year as last. Money has ,to be found,for national: defence, and the Government""'has' passed a national insurance scheme which will take a very large sum of money to finance." ' REDUCED FINAL DIVIDEND j . Dealing with the results for thte year, Mr Parker regretted that the price of wool, was not maintained, and this, coupled" with droughty conditions, had affected results adfversely, and the directors felt it incumbent to recommend a reduced final dividend. : ; 's '";;• \ "However," he continued, "6 per cent, for the year-is a fair return when you realise all the difficulties we-have had to contend with both in the Commonwealth and the Dominion—more so in the latter, where our expenses have increased as the result of recent legislation, and even now we do not know quite where we are. I behoves us then to make provision for lean timeSj and I can assure you that everything is being done, in that direction that can be done, and, your: .company to-day stands on very solid foundations. There are indications that the price of wool may harden-—the. opening of the new season's sales having shown a rising tendency, and it is hoped that this movement may conr tinue." : Referring to the opening of the New Zealand wool season, Mr Parker said that as there was a good demand for crossbred to-day, helped very largely by rearmament requirements, prices might be about on the level of last season. Much would depend upon whether America was in the market. Recently there had been a very satisfactory increase in the consumption of wool, and if trade re* covered there generally, it was quite likely that a demand for wool in overseas markets would be seen. It was expected that the New Zealand clip would be up to the standard of last season. Mr Parker also directed attention, to the frozen lamb trade. He said that a noticeable feature of the market had been the shortage of heavier grades of lambs. In consequence, for the past few months they had been selling at disproportionately higher prices as compared with light-weights. Chilled beef supplies had not been unduly heavy, and prices had been fairly steady. The condition, dressing, and appearance of shipments, both from Aus-r tralia and New Zealand, continued to show improvement. p ,'; DAIRY PRODUCE EXPORTS In the past season exports of Aus-? tralian butter, at 88,000 tons, showjifd an increase of 11J per cent, on the, 1936-37 season. Cheese-::'at 12.200 tons, represented an increase of |7_ per cent. The total'value of these exports had risen from £6,000,000 to £10,300,000. . Exports of New Zealand butter at 142,000 tons, showed a decrease of 4$ per cent., 'while cheese shipped io England, 85,000 tons, was the same as in the previous season. The total value realised was £19,700,000, a decrease of £300,000. Commenting on the balance sheet, and profit and loss account the chairman said that, on the credit side, cash showed a decrease of £740,137, due to assisting droughtstricken clients, restocking operations by clients whose droughtstricken properties had had 'relief, and payments on account of n6tv premises. ' ■" I■' English taxes were up by £63Q4; due to provision for the national defence contribution. -This figure was for the whole year, and not for a quarter, as in last year's figures.;