FINANCE & MARKETS

Sun (Auckland), Volume II, Issue 419, 30 July 1928, Page 12

FINANCE & MARKETS

Bond Market Firm

Banking Scrip Quiet

AVERY firm tone in the market for Government bonds and stocks was one of the features on ! Change this morning.

"Banking scrip is quiet, with only a very limited turnover registered in the section. Commercials have improved in sympathy with the movement elsewhere, and sellers at 39s 9d at midday were supported by buyers at 39s fid. Buyers of Unions strengthened ro £ 14 16s with sellers holding for £l4 19s. Insurances are quiet. Nationals are slightly easier. in coals, buyers of Pukemiros advanced a further fid this morning to 68s, but sellers are. hard to locate. Sellers of A preference Hikurangis cased fid at mid-day. In breweries, buyers of both issues

of Innes and Company? were firmer at 18s. Auckland Gas, ex div.. are slightly firmer. The easier tendency of Colonial Sugars continued uncheeked sellers j weakening to £59 10s. j The industrial market is quiet. I Mining is practically neglected, j Business at mid-day: National Bank of Australasia (con.), £9 6s; X.Z. Breweries (deb.), 23s lid: N.Z. War j Loan, 1933, 5£ per cent.. £101; Hayward's PictLires, 20s; Auckland Gas (pd.), 22s 4d. Reported: Hayward’s I Pictures, 20s: N.Z. Inscribed Stock, 1938, 4 i per cent., £99.

TO-DAYS QUOTATIONS |

Closing quotations at to-day’s midday call were:

SOUTHERN EXCHANGES SATURDAY’S SALES Press Association. Christchurch. —The following sales took place on the Stock Exchange on Saturday: gank of Adelaide. £0 13s (two): Com mercial Bank of Australia, 30s Od.

NGARUAWAHIA STOCK SALE The New Zealand Loan and Mercantile Agency Company, Limited, report:— “At Ngaruawahia on Friday we had a moderate yarding of fat and store cattle, and a large entry of springers. Prices ranged:—Fat cows, £<n 15s to £8 15s; fleshy cows, £4 to £5 ss; good quality store cows, £3 12s 6d to £4 11s; rough ditto, £2 5s to £3; yearling Jersey heifers, £3 5s to £3 15s; dairy cows, £6 to £9 ss: springing heifers, £6 10s to £S; fat hoggets, £1 7s 6d; store hoggets, £1 2s 6d.

DOLEFUL REPORTS BRITISH STOCKS AFFECTED COMMERCIAL REVIEW (United P.A.—By Telegraph — Copyriglit) (Australian and N.Z. Press Association) Reed. 9.15 a.m. LONDON, Saturday. The Stock Exchange, influenced by the hot weather holiday tone, had a quiet week, a pessimistic influence being the heavy industries’ failure to respond to Mr. Baldwin’s announcement that the reduction in railway rates would operate in December instead of next October, and the rather doleful report of the Industries Transference Board. Gilt-edgeds continue to be satisfactory, though the Bank of England’s failures to ' secure gold which was available in the open market, coupled with the decline in sterling exchanges, had not assisted the situation. “The Statist’’ says: “From now until the last months of the year we must prepare ourselves for gradually tightening conditions, a tendency of a weakening exchange, and an outward movement of gold. The past week may be regarded as marking the inception of the autumn pressure.” The total of the last series of wool sales was 93,704 bales. The sales totalled 69,000, the Home trade taking--26,500 bales and the Continent 42,500. The Yorkshire “Press” pointed out that the position is still difficult, because the present prices of Merino and Crossbred yarns are still substantially below the relative London wool costs. The Yorkshire “Post’s” Bradford correspondent says the series failed to restore confidence. The prices asked for raw material did not result in more business in yarns and piece-goods. In fact, the tone of the spinning and manufacturing sections of the worsted trade is becoming steadily worse. More factories are working short-time, and there will be unusually long holiday stoppages. There is no talk of a scarcity of wool, but discussions extend to the losses of those who bought wool from Australia in February and March. MEAT BOARD FINANCE FUNDS ACCUMULATING The balance sheet of the New Zealand Moat Producers’ Board for the year ended June 30, 1925, which is to be presented at the annual meeting on August 30, shows the assets as £81,012 11s 7d. The excess of income over expenditure for the year was £13,717 ISs 9d, which, added to the balance at June 30, 1027, makes the accumulated fund £64,733 5s 4d. The income of the board for the year totalled £38,561 15s 4d, made up of levy on meat exported (£34,911 Ss 3d>, less cost of collection (£349 2s 3d), the net amount being £34 562 6s; interest on investments. £2,798 3s 2d; and net profit on trial shipments to New York, £1,201 6s 2d. The principal items of expenditure were as follow:—Management expenses: Head ofTu e, £6,939; London office, £4,423: total, £11,362; members’ honoraria and I ravelling expenses, £3.171; advertising. £3,753; supervision of grading and of loading and unloading ships, £3,122.

INVESTMENT TRUSTS RAPID GROWTH IN ENGLAND CHANCES FOR SMALL INVESTOR July 30, 9 a.m. j The ever-growing number of small investors has been responsible for an amazing development j of investment trusts over the past decade. These have been forced into being to meet the needs of the small investor desiring a profitable and reasonably safe avenue for developing his investment income. The movement which has made the greatest progress in England, has now spread to Australia and investors in both Australia and New Zealand are offered opportunity of placing a portion of their surplus income in a £1,000,000 concern recently registered in Melbourne. Investment trusts give to the small investor most of the privileges enjoyed by the man with a large investment capital. Firstly, the investments of the trust are regulated and watched by a board of experts fully alive to market movements, and losses through investments in unsound concerns are reduced to a minimum. Secondly, trusts have the great advantage of being able to spread investments over a wide range. With a large percentage sunk in gilt-edged stocks, full advantage can be taken of sound industrials, offering, as many do, big rewards from appreciating revenues and increasing profits to investors able to hold. Thirdly, the scrip of sound investment trust concerns is easily negotiable and, once launched, experience elsewhere has shown, finds a ready market. The popularity of the trusts in the British Isles can be, taken from the fact that little more than 12 months ago there were approximately 130 operating there, with an issued capital aggregating over £186,000,000. Since then new companies have been formed and further issues made by the older companies. Revenue accounts provided by all the well-estab-lished concerns clearly indicate that they are enjoying a state of very satisfactory progress. The movement has also taken a big hold in U.S.A. Returns of up to 20 per cent, are given by some of the exceptionally well situated English companies on ordinary shares. A table recently compiled by a writer in the London “Financial Times,” showing the results of the operations of 30 representative trust companies, showed the average return to ordinary shareholders of well over 10 per cent. It is not the business of an investment trust company to show spectacular profits, however, but by wise, far--sighted and careful management to ' secure the highest return coupled with reasonable safety of capital. This requires constant supervision of the list of securities, frequent exchange of investments and extension of the area of operations. Under the guidance of a conservative board of expert directors constantly in touch with the mai kets, investment trusts have certainly much to commend them to the average small investor. LONDON MEAT MARKET PRICES AT SMITHFIELD Under date July 27, the London olTice of the New Zealand Meat Producers’ Board cabled the following resume of Smithfield delivered prices for the week ended at that date:— New Zealand wethers and maidens.— Canterbury quality, selected brands, 561 b and under, 7 3-8 d a lb; 571 b to 641 b, 7 1-Sd; 651 bto 721 b, 6 7-Sd. Other brands, 561 b and under, 7 1-Sd; 571 b to 641 b, 7d; 651 b to 721 b, 6§d. New Zealand ewes.—64lb and under, sJcl. New Zeala.d lambs.—Canterbury quality, 361 b and under/' 10£d; 371 b to 421 b, 9sd; 431 b to 501 b, 9Jd: seconds, 9gd. Selected brands, 361 b and under, KRd. 371 b to 421 b, 9§. Other brands, first quality, 361 b and undr, 9 7-8 d; 371 b to 421 b, 91d; second quality, 301 b to 321 b, average, lOd. New .Zealand beef.—Ox fores, 33d; hinds, 6£d; cow fores, 3Jd; binds, s|d. Argentine chilled beef.—Ox fores, hinds, 6fd. Frozen pork.—Porkers, 601 b to 801 b, 7id; 811 b to 991 b, 7d; 1001 b to 1201 b, 7d: baconers, 1211 b to ISOlb, 71d. Lamb market.—Steady and unchanged. Hot weather is still affecting all meat consumption. Mutton market.—Firm. Beef market.—Trade slow. New Zealand porker pigs.—Quiet demand owing to hot weather. SOUTH AMERICAN SHIPMENTS The New Zealand Meat Producers Board has received a cablegram from its representative at Buenos Aires, South America, advising the following shipments to the United Kingdom for the fortnight ended July 19, from Argentine and Uruguay:—Chilled beef, 293,800 quarters; frozen beef, 2,465 quarters; frozen mutton, 57,048 carcases; frozen lamb, 77,149 carcases. The quantity shipped to the Continent of Europe during the same period was: —-Frozen beef, 66,248 quarters: frozen mutton. 2,200 carcases; frozen lambs, 242 carcases. BUTTER AND CHEESE LONDON MARKET QUOTATIONS Under date July 27 the London office of the New Zealand Dairy Produce Con-, trol Board cabled the following market report, last week’s prices being given in parentheses:— Butter New Zealand: Salted, 180 s to 184 s (182 s to 186 s); unsalted, 186 s to 190 s (186 s to 190 s); deliveries this week, 700 tons; in store this week, 6,000 tons. Australian: Finest salted, 168 s to 174 s (170 s to 1765); unsalted, 176 s to 178 s (176 s to 178 s). Argentine: Finest unsalted, 16Ss to 170 s (166 s to 170 s). Irish creamery: Salted. 174 s to 176 s (178 s to ISOs); unsalted, 17Ss to ISOs (184 s to 1825).' Danish: Spot, lS2s to 184 s (lS2s to 184 s); f.0.b., 173 s to 175 s (174 s to 1765). Dutch creamery: Unsalted, 17Ss to 182 s (176 s to 178 s). Estonian: Salted. 170 s to 172 s (16Ss lo 1725); unsalted, 172 s to 174 s (172 s to 1765). Latvian: Salted. 168 s to 172 s (168 s to 1725); unsalted, 172 s to 174 s (170 s to 1725). Ukrainian: 164 s to 166 s (160 s). French: Salted and unsalted: 146 s to 160 s (146 s to 160 s). Lithuanian: 15Ss to 164 s (154 s to 1645). Butter market quiet. Retail price advanced to Is lOd. , Cheese New Zealand: White and coloured. 109 s to 110 s (Ills to 112 s); deliveries this week. 15,000 crates: in store this week, 68,500 crates. Canadian: White and coloured, 108 s to 110 s (109 s to 110 s). English, finest farmers: 126 s to 130 s (126 s to 130 s). Cheese market quiet. Retail prices unchanged. Shipping Movements The Ilororata commenced discharging butter on July IS and finished on July 21. The Port Dunedin commenced discharging butter on July 21 and finished on July 23. The Tamaroa commenced discharging cheese on July 20 and finished the next day. North American Prices The hoard has also received advice from its agents in Canada as follows: Rutter, New York. 45 cents (Is 10J4.): Montreal, 37 3-S cents (Is 6 7-Sd).

PUBLIC CRUSHING-PLANT PROVISION AT WAIHI (Front. Our Ovett Correspondent.) WAIHI, Saturday. The district committee appointed to go into the question of providing a public crushing plant in the Ohinemuri district met in the Waihi Borough Chambers, Mr. W. Marshall, Mayor of Paeroa, presiding. In explaining the scheme put forward by the Rising Sun Company, Mr. Marshall said that it was an excellent opportunity for the Government to do something which would assist the industry in encouraging the small syndicate and the prospector: The Rising Sun Company’s proposal is to bring its battery up-to-date as a public crushing plant, and in addition to erect a two-stamp mill, and an automatic sampler for small • parcels,” the seller to have the right to put through his own “parcels” up to five tons. The charge per ton for treatment will be £1 and a guarantee of S 5 per cent, of the agreed assay value. The Government will be urged to make a loan of £6,000, free of interest, and to make an annual grant of £SOO a year to the company for the first six years, such sum to be deducted from the principal sum loaned. On the motion of the chairman, seconded by Mr. Wallnut, it -was "resolved to place the proposals before the Minister of Mines at Wellington, and the following deputation was then appointed: Messrs. W. Marshall, W. M. Wallnut, J. H. G. Banks and F. E. Flatt. The Rising Sun Company’s representative. Mr. R. M. Aitkin, will also be present.

FEDERAL DEFICIT “SURPLUS” TURNS OUT A LOSS The Australian Federal Treasurer’s estimate of a surplus of £45,000 for 19272S has been turned into a deficit of £2,642,000 because of a heavy decline in Customs revenue. The following: table shows Federal taxation receipts for 1926-27 and 1927-2 S

Note: Returns for 1927-28 are approximate. Customs and excise receipts for the last financial year are £3,354,000 below the estimate. The Treasurer admits having miscalculated the far-reaching effects upon imports of the “temporarily straitened financial position” which followed restriction of credit by the banks. The action of the latter was prompted mainly by a desire to improve the oversea trade balance and conserve their resources. Export values had fallen because of the unfavourable season in many parts of the Commonwealth, and imports were growing- apace. The deficit is the net result of a surplus of £9,348,000 on departments and services (other than business undertakings and territories), against which have been se* deficits of £17,000 on the Post Office, £382,000 on Commonwealth railways, £506,000 on territories, and payments to or for the States of £11,085,000 from genCANADIAN WHEAT POOL LARGEST INTERIM PAYMENT (United P.A.—By Telegraph — Copyright) (Australian and N.Z. Press Association) WINNIPEG, Saturday. The largest interim payment ever made by the Canadian Wheat Pool, the total of which exceeds £6,800,-000, has been paid to the provincial pools of Manitoba, Easkatcliewan and Alberta by the Central Selling Agency. This is a second interim payment for the 1927-28 crop. The first payment of 7id a bushel was made on March 10. Mr. E. B. Ramsay, the manager of the Central Selling- Agency, stated that as all “spreads” have been adjusted in this payment and all deductions for elevator, commercial reserve and carrying and other charges made, the final payment at the end of the crop year will be a flat payment on all grades. Mr. Ramsay stated that the 1926-27 crop met a difficult market, owing- to the heavy rains in the threshing season, but the 1927-28 crop, which is large in volume but suffered from frost rust and excessive moisture, was an even greater problem. He said there seemed to be general satisfaction with the manner in which the selling problems had been handled, and with tlie average price secured for the members’ wheat.

LONDON MARKETS FROZEN MEAT VALUES (United P.A.—By Telegraph — Copyright) (Australian and X.Z. Press Association) LOJfDON, Saturday, blieep.—Australian ewes, 5 5-Sd Au S I trl!fa® e c e w'T NeW Zealand - hinds 6 i d i Chilled Beef.—Argentine fores aadV>'rt dS ’ nfl d: Urug V* ay ' fores '. "id: 'hinds', Oid. Others unchanged. COTTON, RUBBER, HEMP, ETC. (Bast week’s prices in parentheses.) a t lb ° tton ' — August delivery, 11.09 d (lljd) Rubber— Para, Hid (lljd) a lb; plantation and smoked, 9 7-16 d )9 5-Sd) a lb. August-September shipments, 12s 6c * (July-August, £35 17s 6cl) a —July-September shipments, £3O 10s (£3O 10s) a ton. „£.?PU a - —August-September shipments, £2d los a ton. Linseed Oil.— £2S los (£29 ss) a ion Turpentine.—43s (44s 6d) a cwt. APPLE MARKET Apple prices hS.ve keut up unexpectedly well. The Jervis Bay’s fruit at London and Hull sold as follows:—Stunners, 9s 6d to 13s; Rome Beauty, 10s to 12s 6d; Scarlets, 10s to 12s 6d; French Crabs, ripe, 9s to 11s; Five Crown, wasty. Ss to 9s 6d: Rokewoods. 11s to 13s. The Port Darwin’s apples at Liverpool sold as follows:—Sturmers, 10s to 12s 9d; Cleos. 10s to 14s: Jonathans, 12s to los; Scarlets. 10s to 14s RABBITSKINS SALES At the London rabbitskins sales 2,760 were offered and 2,050 sold. Hatters’ sorts were in strong demand and advanced an average of 10 per cent. Australians were 5 to 10 per cent, higher for pulling, and 10 to 20 per cent, unpulled. New Zealands were correspondingly 5 and to 10 to 15 per cent, higher. Australian furriers’ sorts sold freely at an advance of 5 per cent. The majority of the withdrawals were New Zealands, chiefly seconds and later winter bucks. P. AND O. SHARES P. and O deferred stock is at £237 10s.

Sellers. Buyers. £ d. £ d. B ANKS— Bank of Australasia 14 18 0 14 15 0 < v>m. of Aus 1 in 9 1 10 6 Ditto (con.) .. . . 0 19 3 Ditto (pref.) .. .. J) 0 6 0 i'om. of Sydney .. 0 Eng., Scot. «fc Aus. 8 12 ♦> N*a t. of N.Z 0 3 0 Xat. of Australasia 18 9 0 Ditto (con. > . . . . 9 9 New South Wales . 50 10 0 50 0 0 New Zealand .. .. 0 0 19 6 I>itto, D Mort. (20h pa id.) 1 0 1 I'nioii of Australia • 14 19 0 14 INSURANCE— 0 n; 1 0 15 9 New Zealand .. . . 3 0 r> South British . • .. 3 1 0 3 0 6 LOAN AND AGENCYAbraham and Williams (pref.) 4 6 Dalgety and Co. 14 17 0 Farmers* Co-op Auctioneering 0 0 12 Newton King (pref) N.Z. and River Plate 1 10 3 N.Z. Loan <fe Merc. 106 0 0 Ditto (pref.) .. .. — 80 0 0 COAL — Hikurangi 0 4 0 5 10 Ditto (pref.) .. .. 0 9 3 Ditto (A pref.) .. 0 9 8 6 Pukerimo 3 S 0 Renown 0 13 <» Taupiri .. — 1 6 s Ditto (pref.) .. .. — 1 Waipa 14 — \\ estport Westport-Stock ton . 0 3 0 Ditto (pref.) .. .. — GAS— Auckland 1 2 4 1 2 3 SHIPPING— Devon port Steam .. 1 4 0 1 3 3 Northern Steam .. 0 14 0 14 Ditto (con.) .. .. 0 7 0 P & O. (def. stk.) 240 0 0 234 Union Steam (pref.) 1 0 9 1 0 TIMBER— Bartholomew .. .. — 0 15 0 0 19 3 18 0 Leyland-O' Brien 1 13 0 1 National * 0 11 0 WOOLLEN— Kaiapoi .. : . .. .. 0 10 3 — Ditto (con.) .. .. Mosgiel fi 18 0 Wellington — Ditto (pref.) .. •• — BREWERIES— C. L. Innes (pref.) 1 0 0 18 0 T>itto (ord.) • . .. 0 IS N.Z. Breweries 5 0 3 6 J. Staples and Co... 1 17 3 — MISCELLANEOUS— Auckland Amusement Park . . .. 0 0 British Tobacco 3 0 6 Burns Philp 0 Bycroft, Ltd 1 10 3 Checker Taxicab .. 0 0 Colonial Sugar (Australia) 10 0 10 0 Dental and Medical (J 14 6 Dominion Pictures. l 1 0 Ditto (pref.) .. .. — l 1 0

Sellers Buyers. Electrolytic Zinc (ord.) 113 9 1 12 9 Ditto (pref.) .. .. 1 13 0 Gear Meat 0 0 Grey & Menzies . . 0 9 3 Hamilton Theatres. 0 17 0 Hayward's Pictures 10 6 0 19 6 Henry Jones .. .. 1 16 * Hill and Plummer . . 1 1 9 H.M. Arcade (pref.) 1 0 0 N.Z. Drug: Lewis Eady, Ltd. — 3 9 0 (Old.) — 1 0 Milne and Choyce .. — 1 4 6 Ditto (pref.) .. .. — 1 4 6 Ditto (B pref.) . 1 4 6 Ditto (deb. stock) 1 3 9 National Pictures .. 0 13 0 Paimers’ Fertiliser. 4 8 0 4 0 0 N.Z. Paper Mills .. 0 15 Morris Hedstrom . . 113 1 0 3 N.Z. Refrig:. (pd.) 0 18 3 Ditto (con.) .. . . 0 8 9 0 8 Northern Boot.. 0 18 n Robinson Ice Cream 13 0 1 2 3 Sanford, Ltd 0 19 6 Ditto (pref.) .. .. 10 6 Sharland and Co... 1 0 3 0 19 6 Taranaki Oilfields .. 0 10 0 0 8 3 Thames Theatre .. 10 0 Tonson Garlick 0 11 Union Oil 2 3 6 2 0 Whittome Stevenson 9 Wilsons Cement MINING— 1 19 0 1 17 9 Moanatairi (paid) . 0 1,6 0 1 4 Ditto (con.> . . . . 0 0 6 Golden Age (paid). 0 0 3 0 0 1 New Waiotahi (4s paid) 0 0 4 Ditto (con.) .. .. Occidental Una 0 0 6 0 0 1 (con.) 0 0 5 Ohinemuri (ord.) .. 0 7 2 6 11 Ditto (pref.) .. .. 0 7 3 Waihi 0 12 10 0 12 6 Waihi Grand June. 0 15 . 0 1 4 AUSTRALIAN— Mount Lyeli .. 1 15 10 1 15 6 DEBENTURES— Auckland Gas, 1932 5 93 0 0 Ditto, 1925, 6i . . Auckland Harbour 103 0 ' 0 102 5 0 Board, 4 p.c 89 0 0 Ditto, 5i p.c 95 10 0 Ditto, 5i p.c 99 b 0 City of Auckland, 1940. 5* P C 95 10 0 Ditto, 1943, 5£ p.c. Borough of Devon99 7 6 port, 6 p.c 1UQ 0 t Borough of Mt. Eden. 6§ D.c. 100 0 0 Ditto. 6 p.c Borough of Hamilton — 102 0 0 * DC Hamilton Theatres — 100 0 0 7 p.c 105 0 0 Ditto, 8 p.c 106 0 0 N.Z. Breweries .. 14 0 1 3 10 90 0 0 GOVERNMENT BONDS— War Loan, 1930. 4£ 99 0 0 98 10 0 Ditto, 193S, 4i p.c. 98 10 0 Ditto, 1939, 4J, p.c. 98 10 0 . Ditto, 1941, 4} p.c. 98 0 0 Ditto, 1933, 5£ p.c. 101 5 0 100 10 0 Ditto, 1936, 5£ p.c. — 100 Id 0 INSCRIBED STOCK War Loan. 1938, 4.J, — 98 12 6 Ditto, 1939 4£ p.c. —• 98 10 0 Ditto, 1933, 5i p.c. 100 10 0 DRto, 1936, 5i p.c. — 100 17 6

1926-27 1927-28 Customs and ex- £ £ cise 43,552,478 41.4 46,070 Land tax 2,615,900 3; 027,205 Income tax . . 11,126,278 10,165,174 Estate duties Wartime profits 1,362.351 1,752,119 tax, dr Entertainments 2S.357 101,62 S tax 366,159 348,256 Total 59,994,S09 £56,637,196