COMMERCE AND FINANCE

Otago Daily Times, Issue 23703, 10 January 1939, Page 6

COMMERCE AND FINANCE

LOCAL AND OVERSEAS MARKETS

MINING NEWS NEVIS SLUICING CLAIMS As a result of a partial wash-up at the Nevis Sluicing Claims, 250 z 2dwt of gold have been won. VICTORIAN GOLD YIELD Production of gold by Victorian mines in 1938 is likely to be about MO.OOOoz, or approximately 6000 oz smaller than in 1937. Dividends, however, are up £15,228 at £237,421 a record for the revival period. Dividend-paying mines numbered 15, compared with 16 in 1937. Victorian mines paid 8.2 per cent, of all gold dividends for the year. The State’s contribution to Australian gold dividends of £13,700,000 between 1931 and 1938 is £769,513, or 5.6 per cent. The chief cause of reduced production in 1938 was the prolonged spell of dry weather. Water shortage hindered alluvial mining and retarded milling ©Derations, especially at Bendigo. CLUTHA RIVER DREDGE IMPROVED RETURNS The Clutha River Gold Dredging Company, Ltd., reports a wash-up of 3060 z for 122 hours for the week ended on January 5. A recovery of 200 oz for 101 hours is reported for the week ended on December 30. SEARCH FOR OIL NEW COMPANY FORMED The formation of a new no-liability company, with a capital probably of £450,000 in £1 shares, to provide further finance for activities of the New Zealand Petroleum Company, Ltd., was announced at the annual meeting in Melbourne of Taranaki (N.Z.) Oil Fields, No Liability, by the managing director. Sir Colin Fraser. Sir Colin pointed out that it would be simpler to have the same number of shares in the new company as in Taranaki. Probably 6d or Is a share would cover application and allotment money. Full details would be made available to shareholders shortly. The chairman. Mr W. A. Watt, said that it was intended that Taranaki shareholders should have the right to take up, pro rata to their holdings, shares in the new company. The scheme had been devised to allow shareholders to deal separately and independently with their interests in royalties and their right to maintain indirectly a capital participation in the New Zealand Petroleum Company. Taranaki Oil Fields, under the scheme, would be concerned only with royalty payments on oil won by New Zealand Petroleum. “The necessity for finding further capital to maintain an interest in the New Zealand Petroleum Company will be unavoidable whether the well now being drilled becomes a producer or not,” said Mr Watt. “If it is successful, the drilling of additional wells will at once be necessary tci determine the limits of and develop the productive area. If it is not successful, further drilling on the same or on other structural areas must be envisaged. “ We shall all look forward with the verj greatest interest to the outcome of operations in New Zealand, and will wish the New Zealand Petroleum Company the success it deserves in its courageous effort to develop what may well become one of the leading industries in Australia and New Zealand,” Mr Watt concluded.

COMMERCIAL RANK OF AUSTRALIA INTERIM DIVIDEND UNCHANGED Mr A. M. Broderick, manager of the Commercial Bank of Australia, Ltd., in Wellington, has received a cable message from his head office in Melbourne stating that an interim dividend for six months at the rate of 4 per cent, per annum on preference shares and 6 2-3 per cent, per annum on ordinary shares will be paid in Australian currency on February 10. Transfer books will close on January 25. ~ _ , , Last year the Commercial Bank of Australia, Ltd., paid an interim dividend of 4d a share, equivalent to 6 2-3 per cent, per annum on the ordinary shares, and a final dividend of 4Jd a share, equivalent to 7J per cent, per annum, making the total distribution for the year ended June 30, 1938, B£d a share, equivalent to 7 1-12 per cent., as against 8d a share, of 6 2-3 per cent, for the previous year. COPPER PRODUCTION As from January 1, the copper production quota was reduced to 100 per cent, of basic tonnages. Commenting on this further restriction, which was announced on December 7 by the companies which are signatories to the agreement, the Financial News states that the reason for the lightning changes in the quota during the }ast two months is that v the aim of the producers. judging by* recent decisions, is to maintain prices about, £45 a ton. Despite the reintroduction of restriction the price fell to £42 early last month, when political fears caused fairly heavy speculative liquidation, but rose to over £44 at the end of the year. The market was depressed by the contraction in armaments buying after the crisis and the recent slowness of the United States market. Production, moreover, is believed to have been substantially in excess of 110 per cent. Since the current rate of production Is not known, it is impossible to say exactly what amount of output curtailment will result from the announcement. The reduction from 110 per cent to 100 per cent, in this year's quotas, however, will mean a curtailment of some 6000 short tons as it is generally believed that the aggregate tonnages of the seven restricting mines are about 725.000 per annum. The general opinion in market circles is that restriction to 100 per cent, should ensure equilibrium between supply and demand provided consumption is reasonably satisfactory

COMPANY BALANCE SHEETS TARANAKI (N.Z.) OIL FIELDS NO LIABILITY Paid-up Shares held In Trading April 30 C'aMal other companies Result £ £ £ 1030 577,510 333,103 *513 1937 579,376 333,163 *6lB 1938 579,321 333,163 *798 ♦ Loss This company, registered in Australia with headquarters at Melbourne, is engaged in oii-prospectlng—a work, which, if successful, will prove of immense benefit to New Zealand and Australia alike. Meanwhile its efforts are in the initial stages, when there is little or no return to compensate for the time, labour, and capital expended. The latest three annual balance sheets show little difference among themselves, either in total, or in the individual items. The parent company is constituted with a nominal capital of £1,000,000, of which £290,409 is unissued. Of the issued capital of £709,591, there is uncalled £127,714, or roughly one-sixth, which leaves the net amount of capital in circulation at £579,321, after allowing for forfeited shares of £2556. This capital is chiefly represented by shares in subsidiary companies, which, taken at cost, come to £332,462. Divided among four oil companies, the shares are fully paid in the case of one company only (Moturua Oil Fields Ltd). In the three others, there is uncalled liability aggregating £208,705. General development account has absorbed the greater part of the balance of the capital. The position of development account, which now stamds at £205,673, has little altered during recent years. Among the tangible assets, the largest is drilling equipment, stores, and tools, entered at £35,030. It would appear that depreciation must operate here, but no allowance seems to have been made for it. The same applies to buildings (£1100), survey arid camp equipment (£500). horses vehicle and motor car (£247), and office furniture and equipment (£495). At cost price, freehold properties represent £3OOO. Liquid assets comprise deposit and accrued interest amounting to £1773, and cash in bank and on hand of £326. Sundry debtors have risen to £729 and with unexpired insurance of £54, bring the total of liquid assets to £2882. Against these, there are sundry creditors of £1460, and a small sum provided for income tax. Profit and loss account shows that expenditure meanwhile is confined to administration expenses. Last year, these amounted to £896, the directors giving their services without fees. A sum of £79 was received in dividends on shares, and £l9 from commission and interest earned, the net result being that £798 was transferred to the debit of development account. The possibilities of this company are great, _ but patience combined with optimism is required of the shareholders, until time can bring about a decision.

NEW ZEALAND BUTTER DECREASE IN LONDON STORES A lowering of stocks of New Zealand butter in London is a feature of the latest market report of the New Zealand Dairy Board, issued by arrangement with the Marketing Department. At December 30 stocks of New Zealand butter in store in London stood at 1829 tons, against 2223 tons in the Erevious week and 4614 tons at Novemer 25. At December 30, 1937, stocks in London totalled 2112 tons. An appreciation in prices has accompanied the reduction, which, no doubt, is largely accounted for by the delayed shipments caused by the waterfront dispute in Auckland early in November. The figures include 61 tons of butter ex the Rangitiki. but none ex the Mataroa, which was one of the first'vessels to sail from Auckland following a, settlement of the trouble. This vessel was allotted some 100,000 boxes of butter,, about 2500 tons, and 14,150 crates of cheese. Discharge of her cheese cargo was commenced on December 28, Australian butter stocks in London at December 30 stood at 5170 tons, against 4029 tons in the previous week, and 1408 tons a year earlier. At the close of the year the Imperial Economic Committee estimated the stocks of all butters at 576,373 boxes ,14.409 tons), against 183,800 boxes (4845 tons) a year previously. DAIRY PRODUCE INTERNAL MARKETING ACTIVITY During the first four months of the new season it is estimated (says the Auckland_ Star) that the Internal Marketing Division of the Primary Products Marketing Department made an approximate loss of £IOOO a day or an estimated total of £120,000. by selling local butter at last season’s price. Although producers were paid the guaranteed price on all butter produced. the unfavourable effect on the Marketing Department’s account with the Reserve Bank created a good deal of comment in dairying circles. The rise of 2d per lb in the local retail price will, however, leave a substantial margin of profit, and if retained to the end of the season should more than compensate the Government for the loss incurred between August 1 and December 1. Including the bonus paid to dairy farmers at the end of last season, this years guaranteed price of 14.89 d per lb shows an increase of 1,23 d. The increase of 2d in the local retail price recently announced brings the distributor’s price to Is 4Jd on which merchants receive from the Government a working margin and patting allowance of 15-16 d per lb. leaving the Marketing Department a margin of approximately *d per lb above the guaranteed price. The psychological moment to increase local retail prices was when announcing the new guaiantced price. Had this been done an increase of IJd per lb instead of 2d would only have been accessary, and the check on consumption would have been less severe at Is 4d than it was at Is 4jd. A price was fixed, however, that will ensure the actual recovery from the consumer by the Marketing Department of the amount already paid to the dairy farmer in accordance with fhe price guaranteed for the current season. Scott Bros., produce merchants and commission agents, agents for the Dunedin Egg Suppliers’ Association report;—Eggs: The Associated Agents quote—Farmers’ eggs to Is 2d per dozen: seconds, to Is per dozen; storekeepers, Is per dozen. Separator butter (wanted), lid to Is per lb, Honey: Slow; bulk, 6d to 6id per lb; iOlb tins. 5j 9d each; 51b tins, 2s 6d each bets wax, Is to Is 4d per lb Poultry Hens, Is 2d to Is 4d each; heavy breeds, 2s 3d to 2s 6d each; roosters, Is to 's 3d each; cdckerels. 2s to 3s 6d eacn, ducks 2s to 2s 6d each; ducklings up to 3s each; geese, 3s to 3s 6d eacji, gos lings 3s 6d to 5s each; turkeys, gobblers. 10d to 10<|d per lb, hens 9d to lOd per lb. Pigs: Prime baconers, 6Jd to 7d' per lb; porkers 7d to 7£d per lb. Fat: Nominally 10s per cwt. Potatoes: Locals, 6s to 7s cwt. Green peas, 2d to 3d per lb. Tomatoes, Is to Is 2d. Onions: Aucklands. 17s 6d per cwt. Partridge 1 peas, 6s 6d per bushel to 7s 6d per bushel, sacks extra. Whole fowl wheat, 6s 9d to 7s per bushel, extra; softer grades, to 6s per busuel, sacks extra. Whole maize, 7s per bushel. Oats: Cartons, 3s 3d to 3s 9d per bushel, sacks extra. Chaff; Prime oaten sheaf, to £6 10s per ton, bags extra, ex store. Oyster grit, 6s 6d per 1001 b. Straw; Oaten, 3s per bale; wheaten. 3s per bale, ex store. Free use of fowl crates on application. Green food cutters. Doran brooders. Grit mills. Chick raising supplies. Prices on application.—January 9, 1939.

FOREIGN EXCHANGES ON NEW ZEALAND CURRENCY BASIS The Bank of New South Wales, Dunedin, quoted the following rates for purchases and sales of forelgu exchange yesterday:— London— Buying Selling

DOLLAR RATES The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates yesterday on a New Zealand currency basis. They are subject to alteration without notice. U.S.A. Canada (Per £1 (Per £1 N.Z.) N.Z.) Dols. Dols. Selling— T.T 3.71 11-16 3.74 13-16 O.D 3.72 3.75 1-16 Buying— O.D 3.77* 3.80 13-16 THE SHARE MARKET DUNEDIN STOCK EXCHANGE After being closed since December 23, 1938, the Dunedin Stock Exchange will be re-opened at 10 o’clock this morning for the first call-over of the new year. AUSTRALIAN STOCK EXCHANGES (United Press Association) (By Electric Telegraph—Copyright) SYDNEY, Jan. 9. (Received Jan. 10, at 0.15 a.m.) A firm but quiet tone prevailed on the Stock Exchange to-day. THE MORNING SALES Commonwealth Bonds—

Emperor .. .. .. .. 010 O' 'MELBOURNE, Jan. 9. The strong demand for Commonwealth loans persists, while industrials generally are quiet and steady.

£1 N.Z. to £100 ate T.T. 124/7/6 125 O.D. 123/18/9 124/19/6 Australia— £ A. to £100 N.Z. T.T. 100/10/100 O.D. 100/10/100 Fiji— £ V. to £100 N.Z. T.T. 110 88/12/6 O D. 00 • 88/12/6 New York— Dollars to £ N.Z. T.T 3.7798 3.7270 O.D 3.7848 3.7280 Montreal— Dollars to £ N.Z. T.T. 3.8121 3.7519 0 D 3.8208 3.7529 Belgium— Belgas to £ N.Z T.T 22.435 21.895 O.D 22.510 21.900 Czechoslovakia— Crowns to £ N.Z. T.T 100.48 O.D — 106.50 Denmark— Kroner to £ N.Z. T.T. 18.227 17.695 O.D 18.287 17,697 Finland— Marks to £ N.Z .. .. T.T. 186.14 17«.»U O.D 186.54 177.09 France— Francs to £ N.Z. T.T. 144,68 139.68 O.D — 139.70 Germany— Reichsmarks to £ N.Z .. .. T.T. 9.171 O.D. — 9.173 Greece— Drachmae 'o £ N.Z r.T. 418.00 O.D — 419.03 Holland— Florins to £ N.Z. r.T. 7.026 6.771 O.D 7.066 6.773 Italy— Lire to £ N.Z. r.T 70.36 O.D — 70.58 Java— Florins to £ N.Z. T.T. 6.909 6.739 O.D 7.039 6.741 Norway— Kroner to £ N.Z T.T 16.208 13.711 O.D 16.268 15.714 Noumea— Francs to £ N.Z. T.T 149.68 136.18 O.D — 136.22 Papeete— Francs (o £ N.Z r.T 148.48 136.48 O.D — 136.52 Sweden— Kroner to £ N.Z. T.T. 15.837 , 15.335 O.D 15.897 15.338 Switzerland— Francs to £ N.Z. T.T. 16.825 16.360 O.D 16.930 16.362 Chef oo— N.Z. pence to 1 dollar .. ., T.T. O.D ' Hongkong— N.Z. pence to 1 dollar .. T.T, 18 27-64 19 5-64 O.D 18 23-64 19 5-64 India and Ceylon— N.Z. pence to 1 rupee .. .. T.T. 22 0-64 22 41-60 O.D. 22 7-64 22 41-64 Japan— N.Z. pence to 1 yen .. ., r.T. 17 45-64 O.D. — 17 45-64 Manila— N.Z. pence to I peso .. .. T.T. O.D. _ Shanghai— N.Z. pence to 1 dollar .. .. r.T. O.D Singapore— N.Z. pence to 1 dollar .. .. T.T. 34 27-64 35 17-64 O.D 34 23-64 35 17-64 All rates subject i to alteration without notice

£ s. d. 4 p.c., 1941 101 8 9 4 p.c., 1944 102 7 6 4 p.c., 1953 102 15 0 4 pc„ 1955 101 10 0 4 pc., 1957 101 11 3 4 p.c., 1959 101 17 6 Comm. Bank of Australia .. 0 15 6 Bank of New South Wales 30 5 0 Tooheys 1 10 74 Tooths 2 14 6 Australian Gas (A; old) .. 7 11 0 Broken Hill Proprietary .. 2 17 3 Electrolytic Zinc 2 ADDITIONAL SALES 6 6 £ s. d Bank of New South Wales 30 5 0 Comm. Banking of Sydney 21 3 0 Comm. Bank of Australia.. 0 15 6 National Bank (£ 10 paid).. 13 3 0 United Insurance 0 10 8 Coloftial Sugar 46 5 0 British Tobacco 2 8 9 Tooths 2 14 6 Tooheys .. 1 10 74 Dunlop Perdriau .. .. 1 0 6 Mort’s Dock 0 15 74 W. Adams 0 15 3 Producers and General .. 0 4 6 Standard Cement 1 2 4 Hume Pipe Cash Orders (New Zealand 0 19 0 delivery) . 0 16 0 Felt and Textiles .. .. 1 10 9 Sargents 1 6 0 W. R. Carpenter .. .. 2 2 0 Victoria Nyanza .. . - 0 12 6 United Provisions • • • • 0 7 0 (pref.) 1 3 3 Fairymead Sugar .. .. 1 11 3 Electrolytic Zinc 2 6 9 Rawang 0 7 7 Larut 0 11 0

.£ s. d Comm. Bank of Australia . 0 15 6 National Bank (£5 paid) .. (5 12 0 (£10 paid) 13 2 0 Australian Paper Manufacturers (pref.) 1 5 3 British Tobacco 2 8 3 Drug Houses 1 2 9 Melbourne Investment Trust 0 10 0 Australian Glass 5 10 0 Dunlop Perdriau (pref.) .. 1 10 7 Hume Pipe 0 19 2 Imperial Chemicals (pref.) 1 2 11 Electrolytic Zinc (pref.) .. 2 10 6 Broken Hill Pty 2 17 0 Emperor 0 10 0 Loloma 1 0 9