COMMERCE AND FINANCE

Otago Daily Times, Issue 24334, 26 June 1940, Page 2

COMMERCE AND FINANCE

THE SHARE MARKET DUNEDIN STOCK EXCHANGE CLOSER MARKET FOR LOANS There was a larger number than usual of sellers of Government loans on the Dunedin Stock Exchange yesterday, and all 4 per cent, issues of Bonds and Stocks were steadily in demand. Bank of New Zealands were turned over at £1 19s, and a further parcel was on offer at £1 19s 3d. Unions had a buy or at £6, but sellers were firm at £7. There'"was practically no change in the market otherwise. Ordinary Bruce Woollens continued in demand at 17s 6d, and 6d less was offered for preferred Kaiapois. Wilson’s Cements had a bid of 15s 3d, but no seller was attracted. New Zealand Breweries continued on offer at £1 11s. YESTERDAY’S SALES . DUNEDIN SALES REPORTED £ s. d. 4 p.c. Stock. 1940-43 101 0 0 Bank of New Zealand .. .. 1 19 0 AUCKLAND Sales.—Stock, 1949-52. 4 p.c., £lO2 17s 6d; Franklin Electric Power Board, 1958, 41 p.c., £105; City of Wanganui 1948. 4,5 p.c.. £lO2 ss: Auckland Gas (pref. stock; udd lot). £IOO 15s; Bank of New South Wales, £25: Bank of New Zealand, £1 19s: New Zealand Insurance (late sale), £2 15s. £2 14s 6d: South British (late sale). £2 4s 9d: F.A.C. (B pref.), £l. WELLINGTON Sales.—South British Insurance (late Mondav), £2 5s 3d; 4 p.c. Stock, 1955 (3). £lO2 15s; 4 p.c. Stock. 1943. £101: McKenzie’s Stores. £2; Wellington Trust and Loan, £4 12s 6d: Bank of New Zealand, £1 19s 3d; New Zealand Drug, £3 14s. CHRISTCHURCH Sales.—4 p.c. Stock, 1940-43 (2), £lOl. Sales Reported: 4 p.c. Stock. 1940-43. £101; 4 p.c. Stock, 1946-49, £lO2 17s 6d; New Zealand Insurance, £2 15s; South British, £2 4s 6d; McKenzie’s, Ltd., £2 Is, £2 Is 6d; Woolworths (N.Z.; pref.), £1 14s; Christchurch Gas (10s pd.; late Monday). 11s 6d. RABBIT SKIN SALE APPRECIATION IN VALUES FULL CLEARANCE AFFECTED The Dunedin Stock Agents and Wool Brokers’ Association (Messrs Dalgety and Co., Ltd., Donald Reid and Co., Ltd., Stronach, Morris and Co., Ltd., New Zealand Loan and Mercantile Agency Company, Ltd., Wright. Stephenson and Co.. Ltd., Otago Farmers’ Co-operative Association, Ltd., and National Mortgage and Agency Company, Ltd.) reports as follows: , As intimated on June 18, the rabbit skin sale set down for that date was postponed, as American credits had not been received in time for buyers to operate. These have now come to hand, and the auction was held yesterday before a full attendance of buyers, the approximate offering being 60 tons. Competition was fairly well spread, all buyers operating, and a complete clearance was effected. Values all over were considerably, better than late rates, bucks especially showing a decided improvement. Local manufacturers gave good support and took a fair proportion of the does on offer. Hatters grades also sold better. Some nice parcels of winters were offered through the catalogues, first bucks selling to Hid, first early bucks to 102 d, second bucks to 99d, first incomings to 90d, first does to 81Jd, second does to 70Jd. The official range of prices is as follows : Small, 14d to IGiSd per lb; runners, 22d to 26id; light racks, 28ld to 36id; prime racks, 28Jd to 34jd; summers. to 3Hd; dawny autumns, 30d to 341 d; first early autumns, 39d to 42d; first late autumns. 66d to 69Jd; first incomings, 80d to 90d; second incomings, 65d to 68Jd; first early winter bucks, to 102 d; first early winter does, 73d to 77d; spotted winter bucks, 78d to 80d; spotted winter does, 57d to 58d; second winter bucks, 97d to 99d; second winter does, 66d to 70Jd; first winter bucks, 109 d to Hid; first winter does, 79d to 81Jd; outgoing winter bucks, 68d to 70d; outgoing winter does, 53d to 55d; furrier does, 69d to 75d; spring bucks, 56Jd to 66d; spring does, 42d to 43|d; first milky, 33d to 36id; milky, 25gd to 27fd: summer broken, 26d to 273 d; autumn broken, 31jd to 34d; second winter broken, 33d to 38d; first winter broken, 36d to 39d; autumn fawns. 60id to 71d; first winter fawns, 81d to 85Jd; summer black, 23Jd to 25Jd; autumn black," 37id to 46id; first winter black, 66d to 70Jd; first hareskins, 30d to 34jd; bareskins, 183 d to 203 d; horsehair, 25d to 32d; first ferrets, 10s to 10s Bd. The next sale is listed for July 2, and skins for inclusion must reach brokers’ stores by 5 p.m. to-day. FOREIGN EXCHANGES Press Association) (By Electric Telegraph—Copyrigh ) LONDON, June 24. Paris, franc to £l, —; Amsterdam, florins to £l, —; Montreal, dollar to £l, 4.45; Switzerland, franc to £l, 16.90; Stockholm, kroner o £l, 540; Athens, drachmae to £l, 75.55; Lisbon, escudo to £l, 16.80; Kobe, pence to yen, 15 H-16; Hongkong, pence to dollar, 15; Brussels, belgas to £l, 3 29-32; Shanghai, pence to dollar, 16; Rome, lire to £l, 24.175; Tokio, pence to yen. 24.37; Copenhagen, kroner to £l. —; Oslo, kroner to £l, 4 1-16; Argentine, pesos to £l. —. AUSTRALIAN STOCK EXCHANGES (United Press Association) (By Electric Telegraph—Copyright) SYDNEY, June 25. (Received June 25, at 10 p.m.) Operations on the Stock Exchange today were desultory, with prices irregular and weaker. The Morning Sales Commercial Bank of Sydney, £l7; Bank of New South Wales, £24 12s 6d; Tooheys, £1 2s 9d; Broken Hill Pty., £1 15s 7Jd; Cash Orders, 12s 3d; David Jones, £1 4s 3d; Electrolytic Zinc (pref.), £2 3s 3d. Additional Sales. —Associated News, Hs; (pref., 14s 4d); Woolworths. 14s 2d; Consolidated Industries, £1 12s; Dunlop Perdriau, 16s; Kandos, £1 ss; Mort’s Dock, 13s; Newbold, £1 Is 6d: Henry Jones. £2 9s; Electrolytic Zinc, £2 0s Gd. MELBOURNE, June 25. Drug Houses, 13s 4d: Consolidated Industries £1 Hs 6d; Mount Lyell, £1 Is 9d; Loloma, £1 2s Id.

LATEST QUOTATIONS BID FOR WILSONS CEMENT The following are yesterday afternoon’s buying and selling quotations on the Dunedin Stock Exchange, which are subject to the usual brokerage:— N.Z. GOVERNMENT LOANS

UNLISTED STOCKS AH stocks in this section are not quoted on the official list, and transactions are subject to a different rate of brokerage; Buyer. Seller. £ s. d. £ s. d. National Tobacco .. 1 Security Finance .. 0 5 0 DIVIDENDS AND CALLS The following is a list of shares on which dividends will shortly be payable;— Australian Consolidated Industries Half-yearly, A pref. shares at 4 p.c., making 9 p.c. per annum; B ord., 3i p.c., making 7 p.c.; C cont. 3i p.c. To-day North Broken Hill—Quarterly. 6d per share .. •• •• •• June 27 Farmers’ Trading, ord., 7 p.c. .. June 27 Gear Meat —Interim, 3d a share June 27 Zinc Corp—Final (pref. and ord.), Is 6d stg. (less British income tax, 4s 9d in the £) .. June 28 Morris Hedstrom—Final, 3 p.c. June 30 Imperial Chemical Industries— Final, 5 p.c., maxing 8 p.c. per annum July 1 Felt and Textiles (2nd pref.)— Half-yearly, 6 p.c July 1 National Mortgage—lnterim, 5 p.c. p.a. ■ .. '. July 1 Dominion Breweries —12 p.c. on all shares July b Wool worths Prooerties (preferred ord.)—Half-yearly. 6 p.c. per annum July lb ♦Woolworths (N.Z.)—lnterim 5 p.c July is ♦ Quoted ex* dividend on Stock Exchange. MINING NEWS ALEXANDER MINES The mine report for week ended June 20 of Alexander Mines states; No. 8 level: Owing to the shortage of labour, driving has been suspended temporarily. No. 6 intermediate level: This has been driven Gft on stone, the face showing reef 4ft Gin wlda. The lode is very hard, and is between two good walls. Sloping: This had been carried out on two faces on reef averaging 36in in width. During the week 45 tons of stone were sent to the battery. RUBBER QUOTATIONS (United Press Association) (By Electric Telegraph—Copyright) LONDON, June 24. Rubber is quoted at 13id per lb. TIN QUOTATIONS (United Press Association) (By Electric Telegraph—Copyright) LONDON. June 24. Tin: Spot, £286 to £266 10s; forward, £269 5s to £269 10s. SILVER QUOTATIONS (United Press Association) (By Electric Telegraph—Copyright) LONDON. June 24. Silver: Fine, 21Jd an ounce: standard. 22 13-16 d, CLUTHA AND MOLYNEUX SHARES (British Official Wireless) (United Press Association) (By Electric Telegraph—Copyright) RUGBY, June 24. Clutha: Buyers Od, sellers 9d. Molyneux; Buyers lid, sellers 4id. BRADFORD TOPS MARKET LONDON. June 24. At Bradford the total output of tops, yarns, and finished goods for Government purposes remains very high. The civilian trade is quiet on home and export account.

BALANCE SHEET

GOVERNMENT LIFE INSURANCE DEPARTMENT

expenses, and stamp duty. The result of the 1939 business has been to add the substantial sum of £420,887 to the accumulated funds, bringing them to £10,996,636. In addition, a sum of £IO.OOO has been transferred to investment fluctuation reserve. Premium income, including £31,082 for annuities purchased, has reached £846,369, against which there were claims of £728,709. Included in these claims were loans released by surrender (£56,958), surrenders (£42,228), annuities (£34,751), and bonuses surrendered for cash (£775), in addition to death and maturity claims of £585,997. The ratio of claims to premium Income has been as follows: —

Last year the margin is sufficient to go far towards meeting administration expenses, and thus preserve the unearned income mainly in the business. Net revenue from interest, rent, etc., came to £470,816. the growth during the past four years being approximately £70,000. The one specific reserve account is that earmarked for investment fluctuation, to which £IO,OOO out of the past year’s surplus has been allotted, and which now, amounts to £387,197. From the various fluctuations that take place in the reserve itself, it would appear that recourse to it has been necessary on some occasions. The chief liability is claims admitted at £52,772, which seems a comparatively small percentage of the year's total, while premium and other deposits on hand at £12,402 and sundry creditors at £9499 look at about average figures. An item which will grow with time is sinking funds on local body loans, which, with interest, come to £1873, and with annuities (£451) and medical fees (£262) bring the total liabilities to £77,259. Fixed assets consist of landed and house property at £488,396, a small sum of £BSB of leasehold, properties acquired by foreclosure (£14,380), and office furniture and fittings (£4500). As the property depreciation provision is £5838, it apparently concerns only the wasting portion of the first item. The extensive rise in landed and house properties in recent years signifies the favour shown for this class of investment. Mortgages on property at £4,964,780, which is almost double the amount of the next largest investment group, continues to receive the preference for employment of the department’s funds. New Zealand Government securities are entered at £2,679,623. but whether at face, market, book, or purchase value is not stated. Loans to local bodies occupy an important position at £1,740,369, while loans on policies at £1,249,418 are not Increasing as fast as might be expected from the growing business. Premiums outstanding and overdue account for £63,298, while interest accrued, due, and overdue accounts for £120,950. Cash in hand and on current account looks high at £108,045, and amounts to over double the claims outstanding at that date. Sundry debtors occupy the low position of £2476, and the advance payment of £30,000 on account of income tax should help to swell the interest receipts. Assets aggregate £11,466,093, and compare with liabilities as under; — Gross

The annual actuarial valuation has disclosed a surplus of funds over estimated liabilities at date of closing the books of £207,501, of which the sum of £193,071 is being distributed in bonuses varying from 18s to 30s per cent., and the balance of £14,430 carried forward. As the surplus was arrived at after allowing for certain, contingencies, likely to arise from present conditions, policy holders may be well satisfied, although the scale of distribution is not as high as on some previous occasions.

Buyer. Seller. £ s. d. £ s. d. 3i p.c. Bonds, 1953-57 99 15 0 — 3i p.C. Stock, 1953-57 .. 99 10 C — 4 p.c. Stock, 1940-43 .. 100 15 0 101 10 0 4 p.c. Bonds, 1943-46 .. 102 10 0 103 5 0 4 p.c. Stock, 1943-46 . . 102 10 0 103 5 0 4 p.c. Bonds, 1946-49 .. 102 10 0 — 4 p.c. Stock, 1946-49 . . 102 10 0 103 5 0 4 p.c. Stock, 1949-52 .. 102 10 0 — 4 p.c. Bonds, 1952-55 .. 102 10 0 — 4 p.c. Stock, 1952-55 . . 102 10 0 — 4 p.c. Bonds, 1954-58 . . 103 0 0 — 4 p.c. Stock, 1954-58 .. 103 0 0 — MINING Austral N.Z. Mining (£1) — 1 2 0 Big River (Is) — 0 1 0 Clutha River (2s) — 0 1 6 Gillespie’s Beach (Is) 0 0 5 0 0 7 Grey River (10s) — 0 15 0 Nokomai (5s) .. .. — 0 1 9 Okarito (5s) .. .. — 0 1 0 Sandhills, (Is) — 0 0 1 Waitahu (5s) .. .. — 0 1 0 BANKING New Zealand (£1) .. — 1 19 3 Union (£5) .. 6 0 0 7 0 0 INSURANCE National (7s) — 0 17 10 New Zealand (£1) — 2 16 0 South British (10s) .. 2 3 0 — Standard (£1) — 2 18 0 SHIPPING U.S.S. Co. (prof.; £1) - 1 6 9 MEAT PRESERVING N.Z. Refrig (paid; £ 1) — 1 0 3 N.Z. Refrig, (cont.; 10s) — 0 8 10 South Otago Freezing (£5) — 5 10 0 LOAN AND AGENCY National Mortgage (£2) — S 0 0 Perpetual Trustees (18s) 2 9 0 — Trustees. Executors (£3) 4 1 0 —* Wright, Stephenson (ord.; £1) — 1 1 0 Wright, Stephenson (pref.; £1) .. •• 0 18 9 — COAL AND OIL Kaitangata ( 16s) — 1 11 0 Westport (10s) 1 0 0 — Taranaki Oil Develop. (3s 6d) — 0 4 6 WOOLLEN COMPANIES Bruce (ord.; £1) C 17 6 — Kaiapoi (ord.; 17s) .. — 0 15 0 Kaiapoi (pref.; 17s) .. 0 17 0 — Oamaru (£ 1 ) . • • • — 0 19 6 MISCELLANEOUS D.I.C. (pref.; £1) .. 1 2 9 — Dominion Fertiliser (£1) — 1 6 0 Dominion Rubber (£1) — 1 3 0 Stock Exchange Propy. (£1) — 2 0 0 MacDuffs (ord.; £1) — 0 6 9 Milburn Lime (£1) .. — 2 1 0 N.Z. Drug Co. (£2) .. — 3 15 0 Farmers’ Fertiliser (£1) — 1 0 9 N.Z. Paper Mills (£1) — 1 8 0 Ota"o Daily Times (£1) — 2 0 6 Wilsons Cement (10s) 0 15 3 — Woolworths (N.Z.; ord.; 5s) 0 13 0 BREWERIES N.Z. Breweries (£1) .. — 1 11 0

— Investment Admlnistrafluctuation tion exDec. Funds. reserve. •Revenue. penses. 31. £ £ £ £ 1920 . . 5,542.552 208.686 730.908 93.219 1924 . . 6.448,658 202,247 854.591 95,296 1928 . . 7,582,679 209.967 1,023.757 95,745 1932 . . 8.744.549 329.274 1,040.421 77,570 1935 . 9.578,673 461,712 1,120.549 96,583 1939 . . 10.996,636 387.197 1.278.055 118.460 * After deduction of land and Income tax, property

Claims, etc. Premium income. Ratio. t £ p.c. 1930 .. 673,235 675,350 99.69 1931 .. 670,549 680.446 99.87 1932 .. 720,680 656.069 109.83 1933 .. 703,994 679,224 103.65 1934 .. 715,500 710.954 100.64 1935 .. 675,676 721,211 93.69 1939 .. 728,709 846,369 86.10

Dec. Assets. Liabilities. surplus. 31. £ £ £ 1930 .. 8.558,563 51,662 8.506,901 1931 .. 8,912,858 50,064 8,862.794 1932 .. 9,152,271 50,890 9,101.381 1933 9,442,343 55,707 9,386.636 1934 .. 9,768,759 53,737 9.715,022 1935 .. 10,107,731 52,259 10,055,472 1939 .. II.466,093 77.259 11,383,834