COMMERCE AND FINANCE

Otago Daily Times, Issue 23692, 27 December 1938, Page 14

COMMERCE AND FINANCE

LOCAL AND OVERSEAS MARKETS

THE TRADING BANKS OVERSEAS ASSETS STILL FALLING ADVANCES AGAIN INCREASE Another substantial decline in the net overseas funds, a continued contraction of deposits, and a further increase in advances which are running at the abnormally high ratio of 93.705) per cent, to deposits are the principal features to the monthly summary of assets and liabilities of the six trading banks in New Zealand as at Monday, November 28, 1938. Furnished in accordance with the provisions of the Reserve Bank Act, 1933, the statement shows the following aggregate figures in respect of the six banks: — Liabilities

Further Decline in London Funds Another substantial decline is shown in the banks' overseas funds. London funds on November 28 amounted to £3,686,111, as against £4,115,095 on October 31, a decrease of £428,984. Overseas funds in respect of New Zealand business held elsewhere than in London on November 28 totalled £2,367,067, compared with £2,520.451 on October 31, a decrease of £153,384. Total overseas funds, in London and elsewhere on November 28, amounted to £6.053,178, compared with £6,635,546, on October 31, a decrease of £582,368. Against the total funds, however, there were on November 28 demand and time liabilities overseas amounting to £2,980,239, thus reducing the net overseas assets of the trading banks to £3,072,939, as against £4,155,675 on October 31. a decline of £1,082,736. The totals of the trading banks* overseas assets in respect of New Zealand business, as shown in the monthly returns, compare as follows:

Deposits Still Decreasing Demand liabilities, or current account balances of the six trading banks in New Zealand at November 28, totalled £32,707,151, as against £32,892,933 on October 31. a decrease of £185,782. Time liabilities, or fixed deposits in New Zealand as at November 28, amounted to £30,154,592, compared with £30,308,998 on October 31. a decrease of £154,406. The total of demand and time liabilities in New Zealand as at November 28 was £62,861,743, compared with £63,201,931 on October 31. a decrease of £340,188. Demand liabilities elsewhere than in New Zealand in respect of New Zealand business on November 20 amounted to £2,423,486, compared with £2,158,020 on October 31, an increase of £265,466. Time liabilities elsewhere than in New Zealand in respect of New Zealand business on November 28 amounted to £556.753 as against £321,851 on October 31. an increase of £234.902. The total of demand and time liabilities oversea? in respect of New Zealand business on November 28, was thus £2.980.239 as against £2.479,871 on October 31. an increase of £500,368.

The item New Zealand business, excess of assets over liabilities, on November 28 stood at £ 19,825,939, compared with £19,339,389 on October 31. an increase of £486,550. Reserve balances of the six trading ; banks on November 28 totalled £5,129,615, compared with £4,793,361 on October 31, an increase of £336,254. Government securities held by the trading banks on November 28 totalled £8,612,679, an increase of £349,043. Other securities at £269,764 showed no change. Further Rise in Advances A further increase is shown in the aggregate advances in New Zealand of the six trading banks. On November 28 they amounted to £58,225,678. compared with £57,918,600 on October 31. an increase of £307,078. Aggregate discounts in New Zealand on 28 amounted to £681,955, as against £811,051 on October 31. a decrease of £129,096. The total of advances and discounts in New Zealand on November 28 thus reached the abnormally high level of £58,907.633, compared with £58,729.651 on October 31, a net increase of £177.982. The excess of demand and time liabilities over aggregate advances and discounts on November 28 was thus reduced to the narrow margin of £3,954,110, as compared with £8,089,337 on September 26. The ratio of aggregate advances and discounts to total demand and time liabilities in New Zealand on November 28 was 93.709 per ce*nt., compared with 92.923 per cent, on October 31 and 87.432 per cent, on September 26 The latest figure is the highest for many years. The lowest point touched was 55.95 per cent, in August, 1934. The -"gregate unexercised overdraft authorities on November 28 amounted to £20.423,115, as compared with £22 427.578 on October 31. a decrease of £2,004,463. The total of advances and discounts and unexercised overdraft authorities on November 28 was £79,330,748. as against £81,157,229 on October 31. a decrease of £1,826,481. The active note circulation on November 28 amounted to £10,560,397, compared with £10,789,286 on October 31, a decrease of £228.889. TREASURY BILLS 'British Official Wireless) (United Press Association) (By Electric Telegraph—Copyright) RUGBY, Dec. 23. The total amount applied for in tenders for £35,000,000 in Treasury bills was £52,855,000. The average rate per cent, of bills, three months, is 22s 0.45 d compared with 20s 0.79 d a week ago. WORLD TIN TRADE DECLINE IN PRODUCTION (From Our Own Correspondent) (By Air Mail) LONDON.'Nov. 28. The Statistical Bulletin, published by the Hague Statistical Office of the International Tin Research and Development Council, gives the following 'information (figures in brackets refer to the corresponding period of the previous year):—' World tin production in 1938 shows j a considerable decline. In 1937 there was an average quarterly production of 52,100 tons; in the first quarter of 1938 production fell to 43,100 tons, in the second to 39,200 tons, and in the third to 32,300 tons. Production in September, 1938. amounted to 10.200 (19,400) tons. Apparent tin consumption shows the same trend. The quarterly average for 1937 was 49,700 tons. In the first quarter of 1938 consumption declined to 41,000 tons, in the second to 40.000 tons, and in the third to 34,300 tons. World apparent consumption in September was 13,000 (18,400) tons. The consumption statistics of principal countries for the first nine months of 1938, as compared with the corresponding period of 1937, show that the most marked decreases occurred in the three largest tin consuming countries, the U.S.A.. the United Kingdom, and the U.S.S.R. In most of the other countries apparent consumption increased. In Japan it rose by 22 per cent, to a monthly average of over 800 tons in the first nine months of 1938. Its October consumption is estimated at approximately 1800 tons. World tin-plate production in the third quarter of 1938 was 688,000 tons, against 730,000 tons in the second, and 743,000 tons in the first quarter. The quarterly average for 1937 was 1,064.000 tons. The world output of automobiles in the quarter of 1938 was 637,000 vehicles, against 988,000 in the second, and 1,016,000 in the first quarter. The quarterly average for 1937 was 1,590.000 vehicles. FRUIT AND PRODUCE WORLD Reilly's report selling:— Per Dozen. —Christchurch asparagus, 12s. Hothouse cucumbers. 6s 6d to 8s 6d. Lettuce: Choice, Is to Is 6d; small. 6d. Spinach. Is 9d. Spring onions. Is. Spring carrots. Is 6d. Eggs. Is 4d. Cauliflowers. 4s 6d to 6s. Honey: 21b pottles. 17s 6d. Per Pottle.—Strawberries: Choice Is 8d to 2 S 3d; small. Is 2d to Is sd. Poppies. 2s to 2s 6d per dozen bunches. Each.—Champion egg crates: 24 dozen. 18s. Per Case. —Californian grapes, Almerias. 255. Californian grapefruit, 35s New Zealand lemons, Keribest. 24s to 265; others. 20s to 22s 6d Oranges: Jamaicans. 24? to 275: Australian valencias. 17s to 21s 6d. Bananas: Ripes, 255. Apples: Delicious. 12s to 14s: Sturmers. 10s to 14s; Tasmas. 12s: Rome Beautys, 10s to 12s: Canadian Delicious 24s Pears: Winter Nelis. 12s to 14s. Per Half-case. —Peaches. 4s 6d to 6s 6d. Cucumbers. 10s .6d to 12s 6d. Cherry plums 5s 6d Nelson tomatoes 15s, Per Pound.—Apples: Beauty of Bath. 4Jd. Local grapes. 2s 6d. Cherries: Choice Is 4d to Is 9d; small. lOd to Is 2d. Peaches. sid to 63d. Apricots 4d to 5d Local tomatoes: Firsts. Is 2d to Is 3d: dessert. Is to Is Id. Tomatoes: Christchurch hothouse —firsts Is to Is Id dessert lid to Is. seconds 8d to lid. Local potatoes. Ud to 2d. Green peas, 5Jd to 7d Broad beans, lzd to 2d Rhubarb. 2d. Gooseberries. l|d to 2d. Kumeras, 2£d. Tea: Orange Pekoe. 2? lOd. Butter: Storekeepers' lid to Is. Bacon: Prime. Is 3d. Bacon and porker pies. 7id to 8d; overweights. sd, Bulk honey. 5d to 6-'.d. Beeswax. Is 2d. Walnuts. 6d to 9d. Mushrooms. 10d to Is Red and black currants. 4d to sd. Per Sack.—Cabbage. Is 6d to 2s 6d. Coconuts. 21s. Per Hundredweight.—Onions: Canadians. 17s 6d. Olive oil. 18s. Lime sulphur. 3s 9d gallon. Restar: 4s 6d. Semesan: lib. 12s 6d. Red Rose nicotine I sulphate: 101 b. 465; 21b. 15s: lib. 9s; j Jib. 5s 6d Arsenate of lead paste. 9d ito Is 3d: powder Is to Is 6d. Red ! oil. 4s 9d. D.P. Derris for while butterfly control: lib tins. 2s 3d: 101 b. 15s | Fowl 'wheat, to 7s 3d. Partridee j peas 6s 6d. Maize. 7s. Oats: Cartons. I3s6dto 4« per bushel Crushed oats. I 12s 6d. X Kevs rheatmeal. 15s bag. i Bran. £5 ss. Pollard. £6 15s Chaff: : 8.0.5.. £6 Clover hay. £6 10s. Oaten straw £4. Palmer's chick food: 101 b. ?<* 6d: 251 b. 6s: 501 b. lis 6d: 1001 b 21s 6d. Poultry: 630 hens at 2s 8d to 7s Bd, 120 cockerels at 2s to ss; 83 ducks at 6s 2d to 9s. 211 geese at 10s 6d to 13s, and 14 bantams at Is 4d to Is 8d per pair. REILLY'S CENTRAL PRODUCE MART, LIMITED. Moray place, Dunedin, C.I.

MINING NEWS NOKOMAI WASH-UP The secretary of the Nokomai Gold Mining Company reports a partial wash-up resulting in a return of 5630 z 2dwt. It is expected that the present paddock will be completed some time in January. ALEXANDER MINES RETURNS FOR THE MONTH The following report of gold returns for the month of December has been received from Alexander Mines, Ltd.:— Battery Department.—Two hundred and forty-three tons of ore were crushed for 1370 z 6dwt of melted gold. Cyanide Department.—One hundred and' eighty-four tons of sands were treated for 270 z 14dwt of bullion. Total estimated value. £ll2O. In addition. 5J tons of concentrates were saved, valued at £175. (Note: In estimating these values gold has been taken at 140 s per fine ounce.) Mine Report No. 6 Drive.—Advanced 95 feet, making 296 feet from the main crosscut. The reef track is being followed, which in places carried heavy minerals In the last 25 feet the strata is fairly flat and the ground hard. No. 5 Intermediate Drive (north).— Advanced 22 feet on the reef track carrying quartz leaders This face has been stopped. Driving was commenced on the north end of the stone, which showed , above the level timbers. This was driven on for 31 feet on reef averaging 18 inches wide. The reef then faulted into the hanging wall, which appeared to be very broken. When this stone was opened up it proved to be 12 inches wide, and appeared to go under foot. After the holidays the crosscut will be put out in the eastern wall of the level to ascertain if this stone goes down. Stoping has been carried out above the intermediate level north and south of the winze The reef is two feet wide in the south stope. but there has been no, improvement in the grade. The reef in the face of the north stope will average 54 inches wide. This stone shows free gold. Some filling in the stopes has been done in order to strengthen the timber during the holidays. Two hundred and twenty-five tons of ore were sent to the battery for the month. Operations were closed down on December 21, and will be resumed on January 4. NEW RIVER RETURN The official return of gold won by the New River Gold Dredging Company's dredge during the week ended on December 22 was 660 z of gold from 7500 yards treated in 128 hours' dredging time. BULOLO DREDGE For the month of November the total gross production of Bulolo Gold Dredging. Ltd.. amounted to 20,4910 z of bullion containing 14,1390 z of fine gold from 1,210,000 cubic yards. The estimated working profit is 94410 z of fine gold. The above production is equivalent to £123,716 and working profit to £82,609 on the basis of £8 15s (Australian) per fine ounce of gold. NOKOMAI RETURN The secretary of the Nokomai Gold Mining Company, Ltd., reports a partial wash-up resulting in a return of 5630 z 2dwt. It is anticipated that the work in the present paddock will be completed sometime in January. LONDON MARKETS (United Press Association) (By Electric Telegraph -Copyright) LONDON, Dec. 24. (Received Dec. 26, at 6.30 p.m.) Friday's closing prices were as follows: Cotton, 5.24 d; January, 4.88 d. Rubber: Para. 7d: plantation smoked, BJd. Jute: December-January, £l9 7s 6d. Copra: January-February South Sea, £9 10s; smoked. £9 10s; plantation Rabaul, £lO ss. Linseed oil, £25 10s. Turpentine, 33s 6d. DOLLAR RATES The Associated Banks (othei than the Bank of New South Wales) quoted the following dollar rates on Saturday on a New Zealand currency basis They are subject to alteration withou" notice:—

BRITISH TOBACCO INCREASED TURNOVER Increased consumption of tobacco last year was reported by Mr R. J. A. Massie, chairman of the British Tobacco Company (Australia), Ltd.. at the annual meeting in Sydney recently. Sales of the subsidiary companies were higher, and another large warehouse had been erected at Kensington to meet the need for the storage of leaf. " Last September the excise duty on manufactured tobacco was increased by 8d per lb, and the subsidiary companies found it necessary to increase their prices by this amount," he said. " There has been no other increase in prices by these companies, however, despite increases in various costs during the past few years," Mr Massie said. "The directors hoped that the prices of raw materials would gradually return to normal, and, from advices received, it would appear that leaf prices in America have receded from the peak reached last year. "Freight increases and the appreciation of the dollar against sterling, however, have to some extent offset the fall in leaf prices on the warehouse floor, as compared with last year."

The Victorian Companies Act, which had been passed, but which had not yet come into operation, gave the Regis-trar-general power to consent to a company postponing its first annual general meeting after the Act came into operation, Mr Massie added. No doubt was felt that the company would be able to hold its next general meeting in February, 1940, and to post copies of the consolidated statement to shareholders before the meeting. Mr Massie said that the company was continuing its policy of encouraging local production of good quality leaf.

FROZEN MEAT MARKET SMITHFIELD PRICES (Per United Press Association) WELLINGTON, Dec. 24. The New Zealand Meat Producers' Board advises that the following are the ruling prices ol wholesale quantities of the descriptions of frozen meat mentioned and are foi representative parcels of the goods sold on Thursday, December 22. Chilled beef prices are averages of the week on which this list is issued All prices are on the basis of delivered to Smithfield Market Previous prices are also shown:-

Ox hinds. 145-2101 b.. .. _ _ _ " New Zealand and Australian frozen beef' second quality Lamb Market.—Owing to extremely cold weather, demand is for heavier meats, with lamb in poor request. Owing to heavy arrivals. Australian prices weaker. Mutton Market.—Wethers and wes: Prices unchanged, but trade slow. Beef Market.—Frozen beef: Meeting with good demand. Chilled beef: Steady, with good Christmas trade. New Zealand Porker Pigs.—Firm, with consumption good. New Zealand Baconer Pigs.—Better demand on the improved bacon prices. Boneless Bobby Veal.—Trade continues very slow. WOOL FOR GERMANY PURCHASES IN SOUTH AFRICA Mr Hans Fischer, the managing director of a large wool manufacturing business in Saxony, is visiting Australia for the first time. Interviewed by the Sydney Morning Herald, Mr Fischer said that his products had been sold for years to almost every part of the world. As long as Germany had had free exchange most of the wool his Arm used came from Australia, but now it was practically impossible to use any but South African wool, because of the barter agreement between Germany and the Union of South Africa. .He and other German manufacturers he said, would be only too glad to resume the purchase of Australian wool and for this reason they were all hop ing that a trade agreement would be made by Australia on lines somewha* similar to that made by South Af rica. Referring to the use ot woo] substitutes in Germany, he said that artificial wool of all types was now knowr as Zellwolle. and the use of a percentage of it along with real wool was compulsory in all fabrics for local consumption, but wool only was used in high-class woollen and worsted cloths for export. It had been found that duality and durability of materials declined too much for most fabrics to be serviceable if more than 25 or 30 per cent, of Zellwolle were mixed with pure wool. "I pm a business man. and not a politician." said Mr Fischer, "but. asone who formerly used hundreds of bales a year of Australian wool. I cannot understand why you have allowed South Africa to capture such a large proportion of Germany's wool import tr-ide " SHARE QUOTATIONS < United Press Association) fßy Electric releeraoh— Copyright) LONDON, Dec. 23. Share quotations: Clutha Riverbuyers Is 4&d, sellers Is 7.Jd; Molyneux —buyers 6d, sellers 9d. BUTTER-FAT PAY-OUT NEW ZEALAND CO-OPERATIVE The New Zealand Co-operative Dairy Company, Ltd.. paid out £741,412 on Wednesday as an advance payment for butter-fat supplied for both butter and cheese manufactured in November, the bases.being Is 2£d for finest butter-fat for butter-making and Is 4d for first grade butler-fat for cheesemaking. The sum distributed for November supply last year was £740,267, when the bases were Is Id and Is 2|d respectively. There was an improvement in production last month over the earlier months of this season, consequent on the rainfall following the dry spell experienced in October However whan the increase in the guaranteed price is taken into account it is clear that there was a considerable decrease in the quantity of butter-fat supplied last month compared with that produced in November of last year.

The drop in butler-fat yield for the first six months of the current season from June to November inclusive is very marked when compared with the returns for the corresponding period of last yeai. For the last six months the company advanced its suppliers £2,527.002, as against £2,623.971 for the first six months of the 1937-38 season, a reduction of £96,169, notwithstanding the increase of lid per lb in the basis on which the payment was made

(a) Demand liabilities in New Zealand .. *32,707.151 (b) Time liabilities in New 30,154,592 (c) Demand liabilities elsewhere than in New Zealand incurred in re- » spect of New Zealand 2,423,486 (d) Time liabilities elsewhere than in New Zealand incurred in respect of New Zealand 556,753 (j) Notes of own issue in circulation payable in New Zealand .. — (m) New Zealand business —Excess of assets over 19,825.939 Total £85,667.921 "Including transfers from Bank of New Zealand's long-term mortgage fund of £438,795.' Assets £ (e) Reserve balances held in the Reserve Bank of New Zealand .... 5,129,615 (f) Overseas assets in respect of New Zealand business — (1) In London .. . 3.686,111 (2) Elsewhere than in London 2,367,067 (g) (1) Gold and gold bullion held in New 89 (2) Subsidiary coin held in New Zea815.221 (h) Aggregate advances in New Zealand .. 58,225,678 (h) Aggregate discounts in New Zealand .. 681,955 (i) Reserve Bank of New Zealand Notes .. • • 4,026.967 (k) Securities held in New Zealand — (1) Government 7,612,679 (2) Other than Gov269,764 <1) Value of land, buildings, furniture, fittings, and equipment held in New Zealand .. 1,852,775 £85,667,921 (hh) Aggregate unexercised overdraft authorises .. £20.423,115

■' . London. Elsewhere . Total. 1936. £ £ A Jan. 27 11,149,879 6,183,192 17,333,071 June 29 17,316,659 5,900,334 23,216,993 Dec. 28 7,907,916 5,373,730 13,281,646 1937. Jan. 25 7,361,885 5,221,770 12,583,655 Mar. 29 11,048,114 5,442,104 16,490,218 June 28 12,174,139 5,027,435 17,201,574 Sept. 27 8,147,276 4,225,095 12,372,371 Dec. 27 5,199,776 3,637,900 8,837,676 1938. Jan. 31 5,739,073 3,439,731 9,178,804 Mar. 28 7,462,020 4,200,290 11,662,310 June 27 8,30(1,799 3,054,151 11,362,950 Sept. 26 4,657,743 2,718,117 7,375,860 Oct. 31 4,115,095 2,520,451 6,635,546 Nov. 28 3,686,111 3,367.017 6,053.178

U.S.A. Canada (Per £1 (Per £) N.Z.) N.Z.) Dols Dols Seeing— T.T. .. 3.702 3.74 7-16 O.D. .. 3.71* 3.743 Buying— O.D. .. 3.761 3.804

IN N in o ■ CO c \./i. SheepCrossbred wethers and/ or maiden ewes: Under 481b 49-561b Ewes Under 481b 57-G41b G5-721b Q d 43 44 44 44 3 23 2J 2g q p (Per lb.) d d 43 41 44 44 44 44 44 44 3 3 23 23 21 2g 2g 2g vz, Lambs Canterbury Under 361b 37-421b 43-501b .. — - - Second quality; Average about 311b .. .. Other South Island: Under 361b 37-421b 43-501b - - - North island Downs: 37-421b - - - Secona quality; Average about 301b .. .. Morth Island: First quality: 37-421b ~ - - Secona quality. Average about 311b .. .. Australian LambsVictorian First quality: 71 7 71 7 73 74 Argentine LambsFirst quality Under 361b 37-421b „. 63 6J 62 61 7 6g "N.Zi Frozen BeefOx ninds 145-2101b .. .. Ox "ores, 145-2101b .. .. 44 34 44 34 44 31 "Australian Frozen Beef— Ox hinds, l45-2101b .. .. Ox crops, weights corre41 31 41 31 41 31 N.Z Porkei PigsFirs) duality: 61-801b 101-1201b 7g 71 63 71 71 63 74 71 63 N.z Baconer Pigs— 121-1601b 6g 6 6 Boneless Bobby VealEx store, in parcels .. 41 41 41 Chilled oeel prices are approximate average prices realised for the week) N.z. Chilled BeefOx hinds, 145-2101b .. .. Ox fores, 145-2101b .. .. z 53 3J 53 34 Australian Chilled BeefOx hinds, 145-2101b .. .. Ox crops weight? corre5g 31 5J 31 51 31 Cnion ot South Africa Chilled BeefOx hinds, 145-2101b .. .. Ox fores, 145-2101b .. .. — 52 33 — Southern (ihodesian Chilled BeefOx hinds, 145-2101b .. .. Ox fores, 145-2101b .. .. 53 3g 53 34 51 3g Argentina Chilled BeefOx hinds, 145-21uib .. .. Ox fores, i45-2101b .. .. 61 44 6g 4 61 4 Uruguayan Chilled BeefOx hinds, 145-2101b .. .. Ox fores, 145-2101b .. .. 64 4 64 31 51 33 Brazilian Chilled Beef—