COMMERCE AND FINANCE

Otago Daily Times, Issue 23707, 14 January 1939, Page 11

COMMERCE AND FINANCE

LOCAL AND OVERSEAS MARKETS

MINING NEWS NEMONA DREDGE RETURN (Per United Press Association) GREYMOUTH, Jan. 13. The return of the Nemona dredge was 51oz for 179 hours, 15,100 yards being treated. RECORD GOLD PRICES The price of gold, including old jewellery, lodged at the Melbourne Mint from December 26 to December 30 inclusive, as fixed by the Commonwealth Bank* was £9 6s 10d a fine ounce, a rise of Is Id. This is the highest price ever recorded for gold in Australia. The previous record official price. £9 6s 4d n ounce, was paid for gold lodged at the Mint in the period November 21 to November 25 last. It was reported In the following week that a parcel of gold sold on account of Cullengoral Alluvial Gold Sluicing N.L., Gulgonfi (New South Wales), on November 26 had realised an approximate net settlement price of £9 6s 7|d a fine ounce This was said to be the highest price ever paid by Electrolytic Refining and Smelting Company of Australia, Ltd., wh,ich effected the realisation. MARTHA MINE RETURN (Special to daily Times) AUCKLAND. Jan. 13. The following information has been cabled to the London office of the Martha Gold Mining Company (Waihi), Ltd., for the period ended December 31 comprising 24 crushing days:—l9,o34 tons of ore were crushed for a return of 6234 fine ounces of gold and 36,703 fine ounces of silver. This is the final return for the year 1938. In the No. 3 level the following veins have been intersected in the Lovett south crosscut: —At 204 feet, one foot wide of good grade: at 269 feet, one foot wide, assaying 22s 6d a ton; at 296 feet, a mixture of quartz and country IOIn wide of good grade. LONDON METAL MARKET . < umtea Press Association > (By Electric Telegraph—Copyright) LONDON. Jan. 12. The following are the official metal Quotations:—

CHRISTCHURCH STOCK EXCHANGE

NOTE OF CONCERN GOVERNMENT’S "DRASTIC MEASURES ” LOAN AND MERCANTILE AGENCY “ PFEJUDICIALLY ” AFFECTED l ■'{ (From Oub own Correspondent ) I f ‘'’ (By Air Mall) •' * LONDON, Dec. 15. A note of concern was expressed at the annual meeting this afternoon of the New Zealand Loan and Mercantile Agency Company, Ltd,, by the chairman, Mr Harold G. Brown, at the social policy of the New Zealand Government. Its results were much the same as had been seen nearer home, in France, he said. Drastic measures had been necessary in view of the depletion of available sterling balances, and regulations had been issued controlling exports and imports, and suspending the obligation of the Reserve, Bank to exchange its notes for sterling. "It almost goes without saying that these restrictions must prejudicially affect a business like ours, as at the lowest they must still further increase our expenses, while adding nothing to our receipts,” said Mr Brown. "A great deal will depend upon the spirit in which the regulations are enforced and operated. It is legitimate to hope that ‘sterling’ companies such as ours, whose capital has been raised and is" still mainly held in Great Britain, will be permitted to remit such profits as they are able to make to enable them to meet their commitments to debenture holders and shareholders in this country." Profit Reduced Profit was down as compared with the previous year, but this result had been anticipated. It was some consolation to know that the volume of business had been well maintained Taxes paid in England, Australia, and New Zealand for the year would be about £74,000, nearly equal to the total gross sum available for dividends to shareholders, and considerably more than the net sum after the tax had been deducted, “These taxes grow and grow," said Mr Brown. “It is, however, obvious that with Australia, New Zealand, and this country .spending large sums on defence, in addition to the huge sums expended on social services, there can be little hope of any relief, either here or overseas.” Total profit for the year, after payment of debenture interest, was £82,365, A dividend of 5 per cent, on preference shares required £50,000. and 2 per cent, on ordinary stock took £25,000, leaving £7365 to be added to the carry forward. The past year had been one of difficulty and disappointment. Weather in New Zealand had been bad, stock sales had been affected by facial eczema, and the lambing season had been bad. Drought and locusts were anxieties in Australia, and in South Africa drought had affected the quality and quantity of wool for sale, with the result that the year’s trading showed • loss. Wool Fibre Competition Mr Brown also referred to the growth of production of artificial fibres. They had been born of necessity rather than choice, but during more recent times their potentialities had attracted wider attention, and, in addition to Italy, Germany, and Japan, America had also become a large producer. More recently a factory had been established at Bradford. The quality of the substitutes had greatly improved, but they were still inferior to those of wool.

Referring to the work of the Inter' national Wool Secretariat, Mr Brown said that what it had been able to do in furthering scientific research and publicity for the wool trade was a hopeful augury for what it would be able to do in the future. Its funds could not be compared -with those available to similar producers’ organisations, such as that representing the tea industry, or the artificial fibre industry. Its activities were, therefore, limited An increase in contributing countries and the participation of other interests of the wool Industry, together with a largei levy per bale, would greatly help the continuance and extension of the work Remarking that no prospect could be held out at present that this year’s results would be equal even to those of last, Mr Brown said that rearmament seemed to have done little or nothing to raise the price of primary commodities. It was difficult to economise in expenditure, and they would be lucky not to face an Increase in expenses and taxation.

A DULL OPENING (Per United Press Association) CHRISTCHURCH, Jan. 13. The share markets have reopened in the dullest fashion for years. There seems to have been little life in any section, trading on all exchanges being desultory. A- slack period after the holidays is not, of course, unusual, but this year conditions both In this country and overseas are not calculated to inspire any great confidence among investors, and business has been even smaller than usual. The turnover on the Christchurch Exchange was F 5542. compared with about £20.000 in the first wgek last year, and £71,000 in the first week of 1937. Closing prices for 1938 have, on the whole, been well maintained in some sections of the market. There was little buying support, and the inquiry for New Zealand Industrials was disappointing In the shipping group, the only stock quoted was New Zealand preferences, which were sold at up to £l2. Government loans were regularly quoted around last year’s rates, but there was only one sale—of 4 per cent. 1949 Stock at £97 ss. This was a distinct improvement on the last business before Christmas, which was at £96 10s.

Banks generally were weaker. Commercial of Australia, on which a dividend of 3 1-3 per cent, is payable in February, declined to 16s. E.S. and A. came down to £5 9s and Unions to £8 12s 6d- Outside of Christchurch. Nationals of New Zealand (ex dividend) of 2J per cent, were a shade easier at 48s 6d. and New Zealands were firm at 40s.

The Insurance section had poor business. there being only one sale locally, but the quotations indicated a firm market. The solitary sale was in Nationals at the slightly improved price n 15s 6d.

The Loan and Gas Sections appeared easier than at the close of last year, but the market for breweries was firmer. New Zealands, which in December held around 38s, advanced to buyers at 38s 7d, and Dominion had buyers at 30s 6d, 3d above the closing business in December.

Buyers of Australian Glass followed the firm lead of Melbourne and Sydney and raised their bids to £5 13s without attracting sellers. British Tobacco, Electrolytic Zincs, and Mori’s Dock found a firmer market, Mort’s Dock gaining Is 5d and Is lOd outside Christchurch, G. J. Coles, on which a dividend, will be paid next month, rose, to 82s 3d, but were unable to maintain that level, easing later to 82s. Dunlop Rubbers were stronger at 21s 6d, and 1.C.1. (Australia and New Zealand) preference were steady at 245. Taranaki Oils, which reached their peak price of 15s 3d in the middle of last year, lost ground at 9s 6d and # 8s lOd, New Zealand armers’ Co-opera-tive 4i per cent. Stock, due In 1950. dropped £1 10s at £BB. A feature of the mining section was the activity in Grey Rivers, which were traded before Christmas at prices ranging from 14s 6d to 18s and back lOd. New Zealand Farmers' Co-opera-were at 18s to 18s 6d, but they later eased to 17s 6d. Mount Morgans struck a rising market, going from 10s 4d to 10s 7d, but Broken Hill South declined to 28s. Mount Lyells were easier with sellers down to 27s 9d, AUSTRALIAN STOCK EXCHANGES (United Press Association) (By Electric Telegraph—Copyright) SYDNEY. Jan. 13. . (Received Jan. 13, at-11.15 p,m.)

Business on the Stock Exchange today was dull and restricted, with practically no change in price levels.

THE MORNING SALES £ s. d.

IRON AND STEEL Production of pig iron and of steel ingots is regarded as a reliable index of the present activity of a country and as showing the trend of the immediate future. The inclusion In the Statistical Bulletin of the Commonwealth Bank of particulars of the output of these commodities in Australia will therefore be welcomed. Taking the index of 100 in 1033-34 the production of pig iron for the statistical year 1937-38 (July to June) was 197.7, and of steel Ingots 219,6 Those figures measure the great ad vance which has taken place in the production since 1933-34. Generally throughout 1937-38 production was on the increase month by month until June represented a yearly production of pig iron of 265. P and steel ingots of 259.8. The next month saw pig iron leap to the equivalent of a yearly production of 272.7, while steel ingots fell back to the equivalent of a yearly production of 237.4. only to go forward in August to 250.1. In September and October the production fell off. the former showing pig iron at 213.9 and steel ingots at 224,0, and October Dig iron 185.9 and steel ingots 171.0. No doubt' a large part of the fall m the last month mentioned was caused by the coal strike of September and October. The indexes of internal activity in the Statistical Bulletin from which these figures are taken show that during the past year up to October the volume of employment was steady that building was well maintained up to September, with some diminution in the number of permits Issued in October, though the gross earnings of the railways of Australia showed a tendency to decline. During ten months of last calendar year the index of new- motor registrations varied between 244.6 and 303.5. compared with the yearly figure of 283.5 in 1937-38. The index for October last was 255.5.

£ g d. E s. d Copper, spot 42 15 0 Fall 0 19 41 Copper,; forward 43 1 10i Fall 0 17 6 Electrolytic, spol 47 15 0 Fall 0 15 0 Electrolytic for15 ward 48 15 0 Fall 0 0 Wire bars .. 48 15 0 Fall 0 15 0 Lead spot .. .. 14 10 7J Fall 0 5 7| Lead, forward . 14 14 4i Fall 0 5 0 Spelter, spot .. 13 10 7i Fall 0 3 9 Spelter, forward 13 15 0 Fall 0 3 1) Tin, spot .. .. 216 7 e Fall 0 15 0 Tin forward 217 <*!• 1 3 Fall 1 1 3 Silver, standarO 203d Hist! 1 -ISd Silver, fine 22d Rise 1 •18d

Commonwealth Bonds— 4 p.c., 1944 102 15 0 4 p.c., 1947 103 0 0 4 p.c., 1955 102 5 0 4 p.c., 1957 102 10 0 4 p.c., 1961 103 2 6 Commercial Bank of Aust. 0 15 44 Electrolytic Zinc .. .. 2 6 9 General Industries .. .. 0 19 0 ADDITIONAL SALES Commercial Bank of Australia . .. 0 15 44 Colonial Sugar 46 10 0 Burns Philp 2 13 0 British Tobacco (pref.) .. 1 10 9 Australian Glass 5 12 0 Tooths 2 14 9 Mort’s Dock .. .... .. 0 15 0 ' Felt and Textiles 1 12 0 Sargents 1 6 3 W. Adams .. .. .. .. 0 15 44 Nestles (pref.) 1 16 0 Standard Cement 1 2 6 Mark Foy 1 0 0 Megaitts 1 10 6 Gordon and Gotch .. .. 2 14 3 Victoria Nyanza .. .. .. 0 12 0 Mount Lyell (New Zealand delivery) 1 7 0 Placer Development .. .. 3 14 0 Emperor 0 10 0 Lolorna 1 0 9 MELBOURNE, Jan. 13. Australian Glass were firmer to-day. but other industrials are still auiet. Barriers and gold shares are fairly dull. £ s. d. Commercial Bank of Australia 0 15 3 E.S. and A. Bank .... .. 4 19 0 National Bank (£10 paid) 13 1 0 G. J. Coles 3 19 9 Australian Glass .... .. 5 12 0 Dunlop Perdriau (pref.) .. 1 19 9 Felt and Textiles ,. .. .. 1 11 9 Associated Paper and Pulp 1 3 8 Imperial Chemicals (pref.) 1 2 10 Electrolytic Zinc 2 6 6 Electrolytic Zinc (pref.) .. 2 9 9 Broken Hill Propy, (new) .. 2 3 9 Broken Hill South .. .'. 1 6 10