MONEY AND MARKETS

Southland Times, Issue 23337, 22 October 1937, Page 3

MONEY AND MARKETS

SHARE MARKET INVERCARGILL STOCK EXCHANGE SETBACK TO METAL SHARES Metal companies’ shares suffered a severe setback on the Invercargill Stock Exchange yesterday morning. Commonwealth industrials also eased. Other sections of the market remained Steady. Quotations were as follows:— GOVERNMENT DEBENTURES

NORTHERN EXCHANGES SALES ON ’CHANGE AUCKLAND

SYDNEY STOCK EXCHANGE FIRMER TREND ALL ROUND (Received October 21, 10.5 p.m.) SYDNEY, October 21. The Stock Exchange market is recovering, with a firmer trend all round and reduced selling pressure on base metal shares. Sales were: •£ s d

MELBOURNE SALES The market was brighter and steadier to-

THE RESERVE BANK ASSETS AND LIABILITIES (United Press Association) WELLINGTON, October 21. Following is a statement of the assets and liabilities of the Reserve Bank of New Zealand as at the close of business on Monday, October 18, 1937:—

Proportion of reserve (No. 7 less No, 5) to notes and other demand liabilities, 78.282 per cent. MINING RETURNS SANDHILLS COMPANY (United Press Association) DUNEDIN, October 21, The Sandhills Company’s wash-up was 520 z for 16 days’ work. MOSSY CREEK (United Press Association) GREYMOUTH, October 21. The Mossy Creek dredge return was 530 z lOdwt for 129 hours’ work and 6336 yards. WORKSOP (United Press Association) GREYMOUTH, October 21. The Worksop return was 28oz. WINTON STOCK SALE At the Wintori stock sale yesterday approximately 800 sheep, including seven pens of ewes and lambs were yarded. Fat ewes were sold at up to 33/6 (for the best) and down to 20/(for others), while heavy wethers sold at 45/6. In the store section best full and failing-mouthed ewes and lambs brought to 21/-, medium quality 15/to 16/6, lighter conditioned down to 12/3, all counted. Three pens of ewe hoggets realized 40/2, wether hoggets 25/- and 25/3, small mixed sex hoggets 19/6. There was a small entry of cattle, prime heavy fat cows making up to £ll 10/-, medium quality £7 to £8 10/-, light and unfinished £4 10/- to £5 10/-. Empty cows brought £3 10/- to £4 10/-, with a small steer at £2 10/-. Dairv cows sold at £2 10/to £4 10/-. THE PRICE OF GOLD LONDON, October 20. The price of gold is £7 0/61 an ounce.

WESTFIELD STOCK SALE

SHARP DROP IN VALUES FOR DAIRY CATTLE (Special to The Times) AUCKLAND, October 21. The concern over the dry spell of weather which is being felt by farmers throughout the country was reflected at the Westfield stock sale when the values of dairy cattle dropped very substantially. The sale was one of the dullest experienced for many months and prices fell to levels which were reminiscent of the slump values of a few years ago. While most farmers are not so far experiencing difficulties about feed and herds are continuing to deliver almost flush season supplies of milk, the absence of growth is being viewed with concern. This attitude was stated to be responsible for the fall in values at the stock sale.

“Farmers and graziers are not inclined to stock heavily under the present weather indications,” stated a buyer. Unless there was an early rainfall to stimulate pasture growth the majority of farmers would have difficulty'in maintaining their herds. Paddocks were beginning to show signs of exhaustion and the position would undoubtedly become serious if the diy spell continued for another 10 days. Rainfall was also essential, added a farmer, to ensure good hay crops. Cows and heifers, which up to a fortnight ago were realizing up to £lO at the Westfield sales were sold today at prices which failed to exceed £7 15/-. Only a few animals changed hands at this figure, most of the stock sold in cases where vendors could not continue to carry cattle realizing about £6. TEA AUCTION COLOMBO MARKET J. Rattray and Son, Ltd. have received the following report on a tea auction held at Colombo on Tuesday: Fair quality was offered, with slightly decreased supplies. The market for common grades was firmer, with medium and fine tea steady. Prices generally were unchanged. WAIHI INVESTMENTS LIMITED (United Press Association) AUCKLAND, October 21. The Waihi Investments and Exploration Company, Ltd.,, London, shows a net profit of £12,179 for the year ended September 30. 'The dividend is 6 pe: cent, in sterling, less English income tax.

WOODLANDS STOCK SALE At the monthly stock sale at Woodlands no fat cattle were yarded. The entry was composed chiefly of dairy cows and heifers. These brought satisfactory prices, and a specially good line of Friesian heifers realized up to £B. The sheep entry was small, three pens only being yarded A small line of fat wethers brought up to 38/9 while a pen of hoggets realized 24/-. LONDON MARKETS The Department of Agriculture has received the following cablegram, dated October 16, from the High Commissioner for New Zealand, London:— Tallow.—Market quiet and quotations unchanged. Hemp.—Manila: Market very quiet and tone easier; closing sellers for October-December shipments £26 5/-. Sisal: Market quiet and irregular. October-December shipments sold down to £25 7/6. New Zealand: Market very quiet and no first-hand sales reported. Values nominal on the basis of high points £27 10/-. Eggs.—Market slow. English, national pack, 15/6 to 22/-; English, ordinary pack, 18/6 to 19/6; Danish 13/9 to 15/3; Australian. 12/6 to 14/—

FOREIGN EXCHANGES

NEW ZEALAND CURRENCY BASIS The Bank of New South Wales, Dunedin, announces the following rates of foreign exchange on a New Zealand currency basis: on Buying Selling

METAL MARKET

NORTH BROKEN HILL’S RECORD PROFIT (Received October 21, 10.5 p.m.) SYDNEY, October 21. North Broken Hill, Ltd., earned a record profit of £910,628 for the year to June 30, after providing for depreciation, taxation and royalty.

COMPANY NEWS

BROWN, EWING AND COMPANY increasedYrofit and DIVIDEND A net profit of £2372 is shown in the accounts of Brown, Ewing, and Co. Ltd., for the year ended August 15. A considerable improvement was recorded in the year’s trading, but owing to higher expenses the net profit rose by only £192. The ordinary dividend has been increased to 4 per cent. The thirty-sixth annual report and balance-sheet states:— It will be satisfactory to shareholders to learn that the year’s trading showed a considerable improvement. The turnover and gross profit have both shown a substantial increase, but owing to higher expenses, largely due to Government legislation, increased land and income taxes, and necessary provision for depreciation, the net profit is not so much as might have been expected. Further necessary renovations and improvements have been carried out during the year. The remodelling of the carpet department on the ground and first floors has considerably improved the general appearance of the premises. Now that the new Post Office has been opened, the volume of traffic in the vicinity has largely increased, and this should be beneficial to our business. The general attractiveness of our premises, under the management of Mr Lawn, assisted by the cordial co-operation of the staff, should lead to further improved business. The usual dividend of 5 per cent, on preference shares will be paid, and the directors also recommend the payment of a dividend on ordinary shares at the increased rate of 4 per cent. In addition to dividends, shareholders have had a special discount on their purchases. After payment of the divi ■ dends, a sum of £552 17/10 will be carried forward to next year. Messis A. F. Cheyne and C. Russell Smith retire from the directorate, and, being eligible, offer themselves for re-elec-tion.

Gross profit was £5644 better at £26,641, but expenses (£24,268) took part of the increase, leaving the net profit £2372 (up £192). Total balance-sheet items show an increase of £11,920. An increased provision for land and income tax has been made of £2OB, bringing this reserve to £736. Current liabilities show that deposits are up by £3OOO, the secured debt to the bank is up bv £BB4l, and sundry creditors shows the slight rise of £lB3. On the assets side freehold and leasehold properties have been written down by £360, shop fitting and furniture, which in the previous year increased by £977, have shown a further rise of £544. Motor-cars are marked at £192 10/more, while £5O has been written off the borough machines. Book debts show a rise of £1540, stocks and shipments afloat are up £8826, and the shop improvement suspense account has risen from £303 to £1520.

DAVID JONES LTD. INCREASE IN PROFIT David Jones Ltd., (New South Wales), a retail soft goods company, increased its profit last year by £18,901 to £165,049. Dividends of 10 per cent, a year (in two payments, interim, and final) on ordinary shares require £64,164, of 6 per cent, on first pre ference £9OOO, and 7| per cent, on second preference £18,750. A sum of £25,000 has been transferred to general reserve. With £113,266 brought forward, £161,401 is carried forward. Trade was well maintained during the year, and turnover showed a substantial increase. Out of the profits of the year the directors set apart a further sum of £lO,OOO as a contribu-

tion to the staff superannuation fund, which now stands at £36,701. MURDOCH’S LTD. IMPROVED TRADING Sir James Murdoch, chairman of Murdoch’s, Ltd. (New South Wales), said at the annual meeting that the first three months of trading in the current financial year had satisfied him that the company was now ‘‘around the corner.” “I am hopeful,” he said, “that ytn have now started off on a long period for the payment of small ordinary dividends.” The chairman declared that if the extension of credit was to continue as it had been carried on, by means of the cash order system, this country was lost. Man must live within his limits, he said. DAIRY PRODUCE The New Zealand Dairy Board, by arrangement with the Primary Products Marketing Department, issues the following information: — Butter—New Zealand salted 135/(130/-); New Zealand unsalted 135/- to 136/- (130/- to 131/-); deliveries New Zealand 1831 tons; in store New Zealand 4821 tons; Australian salted and unsalted 134/- to 135/- (130/-); deliveries Australian 847 tons; in store Australian 814 tons; market firm. Supplies short. New Zealand retail price unchanged 1/4. Danish 123/- f.o.b. 145/— spot (118/- to 139/- to 140/-); Dutch unsalted 133/- to 134/- (129/-); Estonian salted 132/- to 133/-; Lithuanian unsalted 133/- (128/-); Siberian salted 132/- to 133/-; market firm, supplies short. Danish retail price unchanged 1/5-. Imperial Economic Committee estimated stocks of all butters in store. 478,204 boxes (last year 986,862). Cheese.—New Zealand white 70/6 (70/6 to 71/-); New Zealand coloured 69/6 (70/-); deliveries New Zealand 13,571 crates; in store New Zealand 42,524 crates; market steady. New Zealand retail price unchanged 9d. Canadian white 70/- to 71/- (70/- to 71/-); Canadian coloured 71/- to 72/-; Canadian c.i.f. 70/6 (69/6); old season’s white 83/- to 84/- (82/-); deliveries Canadian 16,343 boxes; in store Canadian 143,743 boxes; English finest farmers 90/- to 92/- (90/-); market steady. SYDNEY PRODUCE MARKETS SYDNEY, October 21. Produce is quoted as follows: — Wheat.—Silo grain, 5/01 a bushel; new season’s silo, 4/10J; bagged, 5/s|. Flour.—£l2 10/- a ton. Bran and Pollard. —£7 a ton. Potatoes. —Tasmanian £5 10/- a ton; others, £4 10/-. Onions. —Brown, £l5 a ton. Maize. —Yellow, 5/9 a bushel.

Buyers Sellers £ s £ s d Stock, 3| p.c., 1938-52 104 2 6 — Stock, 3| p.c., 1939-52 104 2 6 — Stock, 4 p.c., 1946 103 10 0 Stock, 4 p.c., 1949 103 10 0 Bonds, 4 p.c., 1949 103 10 0 Stock, 4 p.c., 1955 104 15 0 — Bonds, 4 p.c., 1955 104 15 0 — BANKS Commercial 0 17 3 National of New Zealand 2 17 0 New South Wales 32 10 0 — New Zealand — 4 4 3 New Zealand Long “D” issue 1 9 6 Union of Australia 9 9 0 — BREWERIES Dunedin Brewery Co. 1 9 6 — N.Z. Breweries 2 9 3 COAL Kaitangata 1 3 Westport Coal 1 5 0 1 6 0 INSURANCE National 0 18 3 New Zealand 3 4 6 LOAN AND AGENCY Trustees’ Executors (Dunedin) 3 16 0 — — Wright, Stephenson (pref.) 1 0 3 1 1 3 MEAT COMPANIES N.Z. Refrigerating— (20/- paid) 1 0 6 (10/- paid) 0 10 1 Southland Frozen Meat (ord.) 1 10 0 South Otago Freezing Co. 5 3 0 6 0 0 SHIPPING Huddart-Parker 2 4 0 Union Steam Ship Co. (pref.) 1 6 3 — P. and O. Stock — 1 14 0 WOOLLEN MILLS Bruce 0 14 0 Kaiapoi (pref.) 0 17 3 MISCELLANEOUS Broken Hill Pty. (ex rights), cum div. 3 4 0 3 6 0 British Tobacco (Aust.) 2 7, 0 2 9 0 G. J. Coles 4 12 0 D.I.C. (pref.) — 2 4 6 Dominion Fertilizer 1 4 0 1 5 0 Dunlop Rubber (Aust.) 1 2 3 Hume Pipe (Aus.) 0 19 9 1 0 2 Milburn Lime and Cement 2 4 0 N.Z. Drug 3 15 0 N.Z. Farmers’ Fertilizers 0 19 9 1 0 6 N.Z. Paper Mills 1 7 6 Otago Daily Times 2 6 b —— — Permanent Building Society 5 17 Wilson’s (N.Z.) Cement ■ ' — 1 0 0 MINING Broken Hill South 1 19 6 Big River 0 1 2 0 1 6 Electrolytic Zinc (pref.) 2 Gillespie’s Beach 0 1 3 0 1 5 Goldfields Dredging 0 0 3’2 Kildare 0 1 Mount Morgans 0 19 0 0 10 O 2 4 4 Nokomai “ Okarito 9 2 0 0 4 Skippers Rawang Tm 0 10 unlisted Selfridges (Aus.) 1 12 0 — Woolworths (Sydney) 1 J.U n n 6 3 Waipapa

£ 8 d Commercial Bank of Australia 17 2 do. 17 3 do. (pref.) 9 10 0 E.S. and A. Bank 5 9 3 National Bank of N.Z. (2) 2 18 9 Bank of New South Wales 33 2 6 do. 33 0 0 Bank of N.Z. 2 3 11 do. 2 4 0 N.Z. Insurance 3 4 4'/z Auckland Gas (paid) 1 2 0 N.Z. Breweries 2 8 6 Australian Glass 4 11 0 Broken Hill Propty. (rights) 1 10 0 do. 1 10 6 Consolidated Brick 7 9 Dunlop Perdriau 1 2 0 Electrolytic Zinc 2 11 9 Farmers’ Trading (2) 1 0 6 G. J. Coles (2) 4 12 6 Milne and Choyce (deb.) 16 3 McKenzies 4 7 3 do. (2) 4 7 9 M. K. Millinery (2) 12 0 Morts Dock 10 9 Woolworths (Syd., 2i?i t pref.) X 8 0 Broken Hill South 1 19 4 Mount Morgan 10 7 do. 10 8 Unofficial Waikato Carbonization 92 0 0 Woolworths (Syd.) 1 9 0 WELLINGTON £ B d Bank of Australasia (Wed.) 11 5 0 National Bank of N.Z. (Wed.) 2 18 6 N.Z. Guarantee Corporation (Wed.) 4 11 Grey River (Wed.) 7 101/z National Bank of N.Z. 2 18 6 N.Z. Breweries (3) 2 9 0 do. 2 8 9 Australian Glass 4 10 6 British Tobacco (pref.) 1 11 0 do. 2 7 9 Broken Hill Propty. 3 6 0 do. 3 6 3 G. J. Coles (2) 4 11 6 McKenzies 4 7 6 do. (odd lot) 4 6 6 Unofficial Woolworths Ltd. 1 9 6 do. 1 9 5 CHRISTCHURCH £ B d Commercial Bank of Australia (2) 17 1 do. (3) 17 3 N.Z. Breweries 2 8 9 do. (3) 2 8 7 do. 2 8 6 do. (3) 2 8 7 British Tobacco (2) 2 7 3 Broken Hill Propty. (rights) (odd parcel) 1 10 0

Colonial Sugar do. 46 10 46 7 0 6 Electrolytic Zinc (ord.) 12 0 do. (pref.) (2) 2 14 6 G. J. Coles do. 4 4 11 11 6 3 do. do. do. 4 4 4 11 10 10 0 9 6 McKenzie’s Department Stores (2) do. 4 4 7 7 0 6 Skippers 1 7 Mount Lyell (3) do. do. (3) Mount Morgan 1 1 1 1 < 17 17 10 5 9 4 North Broken Hill do. 3 3 0 0 3 Sales Reported N.Z. Breweries do. (2) „ 2 2 8 8 7 6 Broken Hill Propty. (cum. div., 2) 3 5 6 Radio (1936) 1 2 0 Grey River (6/3 paid) (Wed.) 8 0 Mount Lyell do. (3) Mount Morgan 1 1 17 17 10 9 6 Unlisted Woolworths (Syd., 5/- paid) 1 9 3 Sale Reported Thyrodone 1 10 0 DUNEDIN £ s d Mount Lyell 1 17 4 Sales Reported Radio (1936) 1 2 0 Electrolytic Zinc (ord.) 2 11 6 Mount Lyell 1 17 6

Bank of New South Wales 33 12 6 Commercial Bank of Sydney 21 9 0 Commercial Bank of Australia 17 8 National Bank (£5 paid) 7 6 0 Bank of N.Z. 2 4 0 Colonial Sugar 47 5 0 Mercantile and Mutual Insurance 1 12 6 United Insurance 9 17 0 British Tobacco 2 8 6 Tooth's Brewery 2 15 0 Toohey's Brewery 1 11 6 Carlton Brewery 3 5 0 Australian Glass 4 11 3 Dunlop Perdriau Rubber 1 2 3 Kandos 1 4 3 Newbold Brick 1 14 9 Gordon and Gotch 2 14 3 Standard Waygood 5 6 W. H. Soul 4 8 0 United Provisions 7 7 0 Winchcombe Carson 1 13 6 Electrolytic Zinc 2 12 3 Mount Morgan 10 9 Mount Lyell 1 18 10>,2 do. (N.Z. delivery) 1 18 10 >/ 2 North Broken Hill 2 18 9 Kuala Kampar 18 6 Rawang Tin 10 7 Placer Development 3 8 0 Emperor , 12 1

day. Sales were: £ s d Drug Houses 1 0 4*/ 2 G. J. Coles 4 12 6 Herald and Times 3 5 3 Myers 1 14 9 Howard Smith 1 1 6 Emperor 12 0 Taranaki Oil 7 2 Loloma 17 9 North Broken Hill 2 18 0 South Broken Hill 2 1 Mount Lyell 1 18 3 ■ ■ . —

LIABILITIES £ s d 1. General reserve fund 1,500,000 0 0 2. Bank notes 13,117,229 10 0 3. Demand liabilitiesfa) State 5,130,604 19 4 (b) Banks 7,402,237 12 8 4. (c) Other Time deposits 551,170 2 10 5. Liabilities in currencies other than N.Z. currency 6. Other liabilities 142,555 2 3 Total £27,843,797 7 1 ASSETS 7. Reserve— (a) Gold 2,801,791 0 0 (b) Sterling exchange (c) Gold exchange 17,709,271 14 5 8. Subsidiary coin 88,343 8 0 9. Discounts— (a) Commercial and agricultural bills (b) Treasury and local body bills 10. Advances— (a) To the State or State undertakings: (1) Dairy industry account 3,778,987 14 0 (2) For other purposes (b) To other public authorities (c) Other Investments 500,000 0 0 11. 12. 2,906.450 0 0 Bank buildings 13. Other assets 58,953 18 0 Total £27,843,797 7 1

London— £N_Z. to £atglOO T.T. 124 123/10/ 124/10/- - 124/8/9 OJJ. Australia — £ A to £100 N.Z. T.T. 101 100/10/OJJ. 101 100/10/Fiji— £F to £100 H.Z. T.T. 90/7/6 89 OJJ. 90/7/6 89 New York— Dollars to £1 N.Z. T.T. 4.0069 3.9724 O.D. 4.0169 3.9764 Montreal— Dollars to £1 N.Z. T.T. 4.0047 3.9722 O.D. 4.0167 3.9762 Austria— Schillings to £1 N.Z. T.T. —— 20.83 O.D. —. 20.84 Belgium— Belgas to £1 N.Z. T.T. 23.794 23.484 O.D. 23.869 23.495 Czechoslovakia— Crowns to £1 N.Z. T.T. — 112.86 O.D. — 112.91 Denmark— Kroner to £1 N.Z. T.T. 18.203 17.893 O.D. 18.263 17.899 France— Francs to £1 N.Z. T.T. — O.D. — 116.62 Germany— Relchmarka to £1 N.Z. T.T. 9.838 O.D. — 9.843 Holland— Florins to £1 N.Z. T.T. 7.303 7.153 O.D. 7.343 7.157 Italy— Lire to £1 N.Z. T.T. —— 75.47 O.D. — 75.52 Java— Florins to £1 N.Z. T.T. 7.275 7.125 O.D. 7.315 7.129 Norway— Kroner to £1 N.Z. T.T. 16.182 15.892 . OJJ. 16.242 15.898 Sweden— Kroner to £1 N.Z. T.T. 15.785 15.490 OJJ. 15.845 15.496 Switzerland— Francs to £1 N.Z. T.T. 17.456 17.186 O.D. 17.561 17.191 Noumea— Francs to £1 N.Z. T.T. — 115.33 O.D. — 115.37 Papeete— Francs to £1 N.Z. T.T. —— 115.38 O.D. — 115.42 Hong Kong— N.Z. pence to 1 18 29-64 18 53-64 dollar T.T. O.D. 18 27-64 18 53-64 India and Ceylon— N.Z. pence to 1 rupee T.T. 22% 22 21-32 OJJ. 22 11-32 22 21-32 Japan— N.Z. pence to 1 yen T.T. — 17 33-64 O.D. —• 17 33-64 Shanghai— N.Z. pence to 1 dollar T.T. —— 18 11-64 O.D. — 18 11-64 Singapore— N.Z. pence to 1 dollar T.T. 34 23-32 35 13-64 O.D. 34% 35 13-64 Chetoo— N.Z. pence to 1 dollar T.T. 18 15-64 O.D. — 18 7-32

(Received October 21, 6.30 p.m.) LONDON. October 20. Metals are quoted as follows:— Oct. 19 Oct. 20. £ s d £ s d Copper— Standard, Spot 42 12 6 43 8 9 Forward 42 17 6 43 14 4 >/ 2 Electrolytic 47 0 0 48 0 0 to 49 0 0 50 0 0 Wire bars 49 0 0 50 0 0 Lead — 17 11 3 17 14 4>/ 2 Spot Forward 17 11 3 17 14 41'2 SpelterSpot 16 16 10>/ 2 16 15 0 Forward 17 0 7'/ 2 16 19 4’, 2 TinSpot 206 12 6 210 15 0 Forward 206 12 6 210 15 0 SilverFine, per oz Standard, per oz 20d 20d 21 9-16d 21 9-16d

Figures for the past three years are:— 1935. 193G. 1937. £ £ £ Gross profit 17,401 20,997 20,641 Net profit 7.3 2,180 2,372 Dividend p.c., p.a., ord. 2’,'2 3 4 Dividend p.c., p.a., pref. 5 5 5 Dividend amount 1,875 2,000 2,250 Reserve account 13,751 13,930 13,500